| Rural Advocate News | Monday April 15, 2024 |
Senators Continue Pushing for Summertime E15 Waiver Senators Chuck Grassley (R-IA), John Thune (R-SD), and Dick Durbin (D-IL) are calling on the administration to permit nationwide E15 sales this summer. They sent a letter underscoring the geopolitical importance of uninterrupted biofuel access and noted that the president directed the Environmental Protection Agency to issue summertime waivers in 2022 and 2023. “Enabling the year-round sale of E15 helped allow our energy supply chain to ‘address extreme and unusual fuel supply circumstances’ caused by the war in Ukraine that are affecting all regions of the nation,” they said. “To counter these influences, we must pursue an all-of-the-above energy strategy, which includes leveraging domestic biofuels.” They also said as previous temporary waivers have proven, permitting the sale of higher blends of biofuels like E15 through the 2024 summer driving season bolsters domestic fuel supply, lowers consumer costs at the pump, and promotes the environmental benefits of American biofuels and modern agriculture. *********************************************************************************** FCA Board Gets Quarterly Update on Ag Conditions The Farm Credit Administration board received a quarterly report on economic issues affecting agriculture and an update on the financial conditions affecting agriculture. They also got an update on the financial condition and performance of the Farm Credit System. Interest rates remain high after recent inflation reports came in higher than expected, but rate cuts by the Federal Reserve are possible later in the year. Other measures of the economy are favorable, such as low and stable unemployment levels and economic growth. Agricultural producers are facing tightening margins, with cash receipts expected to decline this year and high input costs likely to persist. Crop prices have declined because of elevated supplies. Issues in the livestock industry include recovering from the Texas wildfires and recent HPAI infections in dairy cattle herds. Full earnings for the Farm Credit System were up compared to the prior year but provisions for credit losses increased. *********************************************************************************** Large Tractor Sales Increase Again For the second straight month, unit sales of 100-plus horsepower ag tractors increased in the U.S. New data from the Association of Equipment Manufacturers says March sales jumped 3.2 percent compared to last year, following February’s increase of 2.8 percent compared to 2023. Total year-to-date sales of ag tractors and combines are below 2023’s pace. Tractors are down 13.3 percent while combines fell 20.4 percent. “Seeing the continued growth in 100-plus horsepower tractor sales is a welcome sight as 2024 progresses, despite the softness in other tractor sizes,” says AEM Senior Vice President Curt Blades. “As we start the planting season, we’re optimistic about the future of the ag equipment market.” Unit sales of 100-plus horsepower tractors also grew in Canada during March, rising 2.7 percent compared to 2023. Four-wheel drive ag tractor unit sales jumped 27.3 percent compared to last year and are up 11 percent year-to-date compared to 2023. *********************************************************************************** Forest Service Invests in Rural Communities The USDA’s Forest Service announced it’s issuing more than $232 million to support public schools, roads, and other municipal services through the agency’s Secure Rural Schools Program. As the agency invests in ways for forests to generate more economic opportunities in rural areas, it also aims to support the quality of life in those communities. “National forests and grasslands cover more than 193 million acres, including across rural counties that are important partners in helping sustainably manage resources,” says Ag Secretary Tom Vilsack. “The Secure Rural Schools program is able to contribute to the economic vitality and well-being of the communities intertwined with our forests.” Forest Service Chief Randy Moore says the Secure Rural Schools Program is just one of the ways the Forest Service supports communities nationwide. “This funding aids schools and roads, reimburses counties for national forest emergency services, and assists in creating community wildfire protection plans,” Moore says. *********************************************************************************** Brazil Could Expand Cropland by 35 Percent Brazil is a major soybean, corn, and cotton grower but could expand its crop area by more than a third. Successful Farming says Brazil could do that by converting overgrazed or overgrown pastureland says a research agency in Brazil’s Ministry of Agriculture. A team of university economists say besides the potential addition of 70 million acres of cropland, Brazil could also increase production by devoting more land to second-crop corn. “The potential for Brazil to expand its agricultural output through converting degraded pastureland into cropland is huge,” the U.S. analysts said while writing in Farmdoc. “With approximately 70 million acres identified as suitable for conversion, Brazil could increase its total planted area by 35 percent compared to this year.” There are currently 45 million acres of “degraded” pastureland in four states that are leading corn and soybean producers in Brazil. Experts say Brazil has a lot of unfarmed land with potential. *********************************************************************************** Weekly Corn Export Sales Decline USDA data shows export sales dropped to a marketing year low in the seven days that ended on April 4, although soybean and wheat sales increased. Corn sales dropped 325,500 metric tons, down 66 percent week to week and 72 percent from the prior four-week average. The agency says that’s the lowest level since the marketing year began on September 1. Japan was the big buyer at 221,100 metric tons, followed by Mexico and South Korea. Weekly exports for the week hit 1.56 million tons, down five percent from the previous week. Soybean sales to overseas buyers rose to 305,300 metric tons, a three percent drop from the average for this time of year. Mexico bought 172,600 tons. Exports totaled 503,400 tons, eight percent lower than the prior week. Wheat sales for export totaled 80,700 metric tons, higher than the prior week’s 16,100 tons but two percent below the average.
| Rural Advocate News | Monday April 15, 2024 |
Top 5 Things to Watch - Cattle Numbers, Storm Front Top the Watch List 1. Crop Progress update: Monday's USDA NASS' weekly national Crop Progress report, due out at 3 p.m., will be of interest as there was a bit more field activity this past week where rains didn't keep tractors parked. We'll compare the progress with previous years' early April activity. 2. Cattle on Feed Friday: Latest cattle numbers will hit midday Friday, and we'll have both expectations in a preview piece early in the week as well as the report and professional analysis of it later Friday. S 3. More precipitation in forecast: As much of the country headed into a warmer, but windy, weekend, DTN meteorologists are watching a trough off the West Coast that will move eastward during the weekend and into the middle of the country early the week of April 14th. That storm is likely to produce widespread precipitation, strong winds, severe storms, and areas of snow as it slowly moves across the country throughout the week. 4. Wheat conditions improve: We'll track additional reports from wheat country as that crop begins to kick off spring growth. 5. Economic reports this week: Monday kicks off with the 7:30 a.m. release of U.S. Retail Sales, then at 9 a.m. we'll see Business Inventories and Home Builder Confidence Index. At 10 a.m., weekly Grain Inspections report is due, followed by 11 a.m. release of the Oil Crops Outlook. At 2 p.m. is the Feed and Wheat Crop outlooks, then at 3 p.m. is the USDA NASS' Crop Progress report, followed by our full analysis of the reports. Tuesday the general economic condition reports include the 7:30 a.m. release of U.S. Housing Starts and Building Permits. At 8:15 a.m. is the Industrial Production and Capacity Utilization numbers. â?¯Wednesday we'll see the 10 a.m. release of Weekly Petroleum Status report from EIA, including ethanol data.â?¯ At 2 p.m. the Broiler Hatchery report is released. Thursday starts with 7:30 a.m. release of Grain Export Sales and Initial Jobless Claims.â?¯ At 9 a.m., Existing Home Sales and U.S. Leading Economic Indicators is out, with the Weekly Economic Index hitting at 10:30 a.m. On Friday, at 2 p.m., the Cattle on Feed report is released, followed by DTN analysis of the report. The CFTC Commitment of Traders report surfaces at 2:30 PM.
| Rural Advocate News | Monday April 15, 2024 |
Monday Watch List Markets Back from the weekend, traders will keep close watch over the latest weather forecasts and check news updates from the Middle East. A report on March U.S. retail sales is set for 7:30 a.m. CDT Monday. USDA's report of weekly export inspections is at 10 a.m. The National Oilseeds Processors Association will have an estimate of members' soybean crush in March later Monday morning. NASS's weekly Crop Progress report is at 3 p.m. with the first estimates of soybean plantings to be included. Weather A storm system in the Rockies will move out into the Plains on Monday. Winds are increasing ahead of it and could create some additional risks of wildfires where it has been dry. Scattered severe thunderstorms are expected to form in the Plains as well, with large hail being the most likely hazard.
| Rural Advocate News | Friday April 12, 2024 |
April WASDE Calls for Lower Corn and Higher Soybean Ending Stocks The April World Agricultural Supply and Demand Estimates Report predicts lower corn and higher soybean ending stocks. The 2023-2024 U.S. corn outlook is for greater corn used for ethanol, feed, and residual use. With no supply changes and use rising, ending stocks dropped 50 million bushels to 2.1 million. The season-average farm price is lowered five cents to $4.70 a bushel. The U.S. soybean outlook includes lower imports, residual use, exports, and higher ending stocks. With trade changes and slightly lower residual use, soybean ending stocks were raised 25 million bushels to 340 million. The season-average soybean price is forecast at $12.55 a bushel, down ten cents. The supply and demand outlook for U.S. wheat is for lower supplies, reduced domestic use, unchanged exports, and higher ending stocks, which are raised 25 million bushels to 698 million, 22 percent above 2023. The season-average farm price is down five cents at $7.10. *********************************************************************************** U.S. Ethanol Industry Comments on Brazilian Ethanol Tariffs The U.S. Grains Council, Growth Energy, and the Renewable Fuels Association jointly submitted comments to the Brazilian Chamber of Foreign Trade regarding the Brazilian tariff on imported U.S. ethanol. In October 2023, Brazil’s association of fuel importers formally requested the government drop the ethanol duties because data showed the tariff raised fuel costs for Brazil’s domestic consumers. In anticipation of the open comment period, the three organizations mobilized a number of industry stakeholders to seek a permanent removal of Brazil’s tariff on imported U.S. ethanol. As of January 1, 2024, the current duty stands at 18 percent, while Brazilian ethanol imported into the U.S. enjoys free access to the American market. In their comments, the groups say, “We’d like to stress that the U.S. industry will continue to advocate for restrictive measures to entry for Brazilian ethanol into the U.S. if the Brazilian government doesn’t rethink the current tariff policies.” *********************************************************************************** Survey on Farmers and Sustainable Practices McKinsey and Company research reveals that a vast majority of American farmers have an understanding of sustainable farming. While 90 percent of farmers understand the practices, the uptake remains low. Even where farmers are adopting sustainable practices, they are only implementing them on a small share of their acreage, typically under 30 percent. The survey shows a positive outlook for the future of sustainable farming as farmers are willing to adopt the practices. Some major barriers to adoption remain, including obtaining a market premium for sustainably grown crops and implementation difficulties. Adoption of practices is correlated with perceived return on investment. Practices with the highest perceived ROI, such as applying fertilizer based on soil sampling, have the highest adoption rates. Practices that require only behavioral changes, such as reduced or no-till, have the highest adoption levels at 68 percent. Despite the perceived benefits of sustainable practices, farmers expect costs to remain high. *********************************************************************************** Republicans Propose a Crop Insurance Subsidy Boost The University of Illinois’ Farm Policy News says Republicans on the Senate Agriculture Committee proposed putting $4 billion into the national crop insurance program. That means the government would pay a larger share of the policy premiums for the highest coverage levels. The plan, called the FARMER Act, would inject $4.2 billion over ten years. Premium support for revenue and yield protection at the 80 percent coverage level would rise from 68 to 77 percent. At the 85 percent coverage level, protection would increase from 53 to 68 percent. The proposed increases would only be provided to enterprises and whole farm units. The plan counters an earlier suggestion on crop insurance from Senate Ag Chair Debbie Stabenow, who said her proposal was just intended to jump-start negotiations on the farm bill, and she’s “glad it worked.” AFBF President Zippy Duvall says, “The FARMER Act will make higher coverage more affordable.” *********************************************************************************** Iowa Takes Action on Foreign Land Ownership Iowa Governor Kim Reynolds signed into law new reporting requirements and harsher penalties related to foreign land ownership in Iowa. Reynolds says Iowa plays an important role in America’s food chain, and when Iowa speaks on threats to American agriculture, the country listens. “American soil belongs in American hands,” Reynolds says. The law grants the Iowa attorney general more powers related to foreign land ownership. Those powers include the ability to subpoena foreign landowners for financial records and land purchase agreements for investigations into potential violations of foreign farmland owner restrictions. Foreign landowners would be required to provide details to the state about their land owned in other states if it’s more than 250 acres. It also requires the Iowa Secretary of State to file an annual report on foreign farmland ownership in Iowa for consideration by state officials. The law also raises the fine levels on violations for reporting requirements. *********************************************************************************** USDA Sets Date for Pecan Referendum The USDA will conduct a referendum May 10 through June 24 for eligible domestic pecan producers and importers to decide whether to continue their research and promotion program. Current producers that have domestically produced 50,000 pounds of in-shell pecans or 25,000 pounds of shelled pecans from October 1, 2022, through September 30, 2023, are eligible to vote in the referendum. Importers who have brought in 50,000 pounds of in-shell pecans or 25,000 pounds of shelled pecans during the same period can also vote in the referendum. The order will continue if it is favored by the majority of domestic producers and importers voting in the referendum who have been engaged in the production or importing of pecans. The USDA’s Agricultural Marketing Service will conduct the referendum by express mail and electronic ballot. AMS staff will express mail ballots and voting instructions to all known eligible pecan producers and importers during the voting period.
| Rural Advocate News | Friday April 12, 2024 |
Friday Watch List Markets The University of Michigan's consumer sentiment index for April is due out at 9 a.m. CDT Friday. Traders will keep watch over the weather forecasts in South America and other major crop areas. Any further fighting in the Middle East or Ukraine will also continue to get attention. Weather A storm system continues to slowly push through the Northeast on Friday while another is just off the West Coast. Winds will still be breezy in the East for Friday while quieter conditions will be felt in the middle of the country.
| Rural Advocate News | Thursday April 11, 2024 |
House Ag Chair Intends on Farm Bill Markup in May House Agriculture Committee Chairman Glenn GT Thompson says "without a doubt," the farm bill will be out of his committee by Memorial Day. Speaking exclusively to Agri-Pulse, The Pennsylvania Republican says he found a way to fund commodity program changes, adding, "it's going to allow us to do what we know needs to be done in terms of safety net issues." Getting a five-year farm bill across the finish line remains the priority for agriculture, following last years' one-year extension of the 2018 farm bill. However, lawmakers in the Senate, like Senator Chuck Grassley, are not optimistic. Grassley said to reporters this week, "What they need is a five-year extension, but I'm very pessimistic about there being an agreement in the Senate on a bipartisan farm bill this year." While the House may ultimately pass a bill, Grassley adds, "I don't think you should assume that that's got much to do with what's happening in the United States Senate.” *********************************************************************************** March Consumer Price Index: Small Increases in Food Prices The Consumer Price Index for All Urban Consumers increased 0.4 percent in March on a seasonally adjusted basis, the same increase as in February. Over the last 12 months, the all items index increased 3.5 percent before seasonal adjustment. The food index increased 0.1 percent in March, while the food at home index was unchanged. Both indexes were unchanged in February. Three of the six major grocery store food group indexes decreased over the month while the remaining three had price advances. The cereals and bakery products index decreased 0.9 percent over the month, the largest 1-month seasonally adjusted decrease ever reported in the series. The food away from home index rose 0.3 percent in March, after rising 0.1 percent in February. The food at home index rose 1.2 percent over the last 12 months, while the index for food away from home rose 4.2 percent over the last year, and the overall food index has increased 2.2 percent over the last year. *********************************************************************************** EPA Finalizes PFAS Drinking Water Limits The Environmental Protection Agency Wednesday finalized PFAS drinking water limits, a move the agency claims will protect 100 million people from PFAS pollution. Farmers and ranchers do not produce PFAS; however, these chemicals can be found in the water that is provided to their livestock and crops. In certain areas of the country, PFAS levels have risen in milk, beef, and row crops, according to the American Farm Bureau Federation. EPA is taking steps to protect public health by establishing legally enforceable levels for several PFAS known to occur individually and as mixtures in drinking water. This rule sets limits for five individual substances. EPA estimates that between about six percent and ten percent of the 66,000 public drinking water systems subject to this rule may have to take action to reduce PFAS to meet these new standards. All public water systems have three years to complete their initial monitoring for these chemicals. *********************************************************************************** APHIS Supports Projects to Control and Prevent Chronic Wasting Disease USDA's Animal and Plant Health Inspection Service this week announced the availability of more than $12 million to control and prevent chronic wasting disease in wild and farmed deer and elk. CWD is an infectious, degenerative disease of cervids that causes brain cells to die, ultimately leading to the death of the affected animal. The incubation period can be lengthy, and infected animals may look healthy until the end stages of the disease, making it difficult to distinguish them from healthy animals. Animals infected with CWD can transmit the disease to other animals during the "silent" incubation period. The disease has spread widely, and the limited number of tools and their efficacy impact the ability to control the disease effectively. Eligible applicants may submit multiple proposals for each funding opportunity, requesting up to the maximum amount for that funding opportunity in each proposal. The funding opportunity announcements are posted on Grants.gov. Applications are due on June 10, 2024. *********************************************************************************** National Sorghum Producers Seeks New Leaders for Board of Directors National Sorghum Producers has opened applications for two positions on the 2024 board of directors. NSP is looking for new producer leaders who are passionate about advancing the crop and shaping the future of the sorghum industry. NSP Chairman Craig Meeker says, “We are eager to welcome new voices, ideas and perspectives that will help usher in a new era for our industry.” Board members are instrumental in advancing policies and building relationships that benefit sorghum farmers and the industry. Candidates should be NSP members passionate about advocacy and fundraising, with a vision to advance the industry. No prior board experience is necessary to apply. Applications are due Friday, May 10, 2024. After the application deadline, the NSP Nominating Committee will review all applications before making nominations to the NSP Board of Directors. Selected members will serve a three-year term, beginning October 1, 2024—the start of NSP’s fiscal year. For the application and more information, visit SorghumGrowers.com. *********************************************************************************** USDA Seeks Nominees for Christmas Tree Promotion Board The Department of Agriculture is seeking nominations for the Christmas Tree Promotion Board. Four seats on the board are available, with terms beginning January 1, 2025, ending December 31, 2027. Eligible nominees must have produced domestically or imported more than 500 Christmas trees during the fiscal period of August 1, 2022 – July 31, 2023. The Christmas Tree Promotion Board seeks nominees for the following seats: two Region #1 - Western Region Producers, one Region #3 - Eastern Region Producer, and one Importer. Throughout the full nomination process, the industry must conduct extensive outreach, paying particular attention to reaching underserved communities, and consider the diversity of the population served and the knowledge, skills and abilities of the members to serve a diverse population. The board is made up of 12 industry members including eleven producers and one importer. Election and nomination details can be found on the board’s website at www.realchristmastreeboard.org.
| Rural Advocate News | Thursday April 11, 2024 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, producer prices for March and an update of the U.S. Drought Monitor. The Energy Department's weekly natural gas storage report is at 9:30 a.m. USDA's WASDE report is due out at 11 a.m. Weather A storm system is moving through the Midwest on Thursday and bringing widespread showers and thunderstorms through the eastern half of the country. Some severe storms will be possible as will be heavy rain that could produce some localized flooding. Breezy winds are also developing behind the system.
| Rural Advocate News | Wednesday April 10, 2024 |
NASS Discontinues July Cattle Report and Other Reports USDA's National Agricultural Statistics Service announced Tuesday that it is canceling the July Cattle report and discontinuing the Cotton Objective Yield Survey and all County Estimates for Crops and Livestock beginning with the 2024 production year. The decision to discontinue these surveys and reports was not made lightly but was necessary, given the appropriated budget levels, according to the announcement. In response, the National Cattlemen's Beef Association urged the agency to reconsider. NCBA Vice President of Government Affairs Ethan Lane says, "It is disingenuous for the same agency which touts its commitment to transparency in livestock markets to arbitrarily cease publication of reports which provide just that." NCBA contends that the July Cattle Report and discontinuing the County Estimates for Crops and Livestock provide critical data to the industry. USDA NASS says it has and will continue to review its estimating programs using criteria focused on the needs of its mission and customers to prioritize budget decisions. *********************************************************************************** ASI, NCBA Release Public Grazing Guidance for FMD Outbreaks Two leading livestock industry groups announced guidance for public land grazing in the event of a foot-and-mouth disease outbreak. The American Sheep Industry Association and the National Cattlemen's Beef Association announced the framework Tuesday. The guidance provides resources to livestock producers to voluntarily prepare before an FMD outbreak. Using "real-time" scenario exercises, guidance was improved to provide decision makers with necessary information to ensure animal needs and response goals are met. Some decision criteria include assessing adequate feed/water, mitigating interactions with wildlife, and implementing just-in-time biosecurity. ASI President Brad Boner says, "With about half of the U.S. ewe inventory that seasonally graze on permitted federal grazing lands, this project provides needed information for ranchers and decision makers." NCBA and ASI developed the guidance through two years of virtual and in-person meetings with an advisory group of sheep and cattle producers who hold federal grazing permits. Find the guidance online at securesheepwool.org or securebeef.org. *********************************************************************************** Grassley to Schumer: Put the Farm Bill on the Senate Agenda Senator Chuck Grassley calls on Senate Majority Leader Chuck Schumer to move forward with a bipartisan Farm Bill in short order. Grassley is urging the Majority Leader to hold true to his commitment to seek compromise with Republicans by passing a five-year Farm Bill reauthorization this year. The Iowa Republican says, "Farmers across the United States deserve the stability of a new five-year Farm Bill," as opposed to another one-year extension. Last week, Schumer sent a letter to Senate colleagues, including your plans for the coming weeks and months for the Senate, saying, "Democrats have an ambitious agenda to help the American people." In a letter Tuesday to Schumer, Grassley pointed out the Farm Bill’s notable absence from Schumer’s recent outline of the Senate’s agenda. Additionally, as the Farm Bill has been sidelined, Grassley notes that other important bills that may otherwise have been considered in the Senate Agriculture, Nutrition, and Forestry Committee have been stalled. *********************************************************************************** NMPF, IDFA Concerned with Final WIC Rule Reducing Access to Dairy The National Milk Producers Federation and the International Dairy Foods Association expressed disappointment in Tuesday's final rule to update the Special Supplemental Nutrition Program for Women, Infants and Children, or WIC. The final rule maintains the proposed rule's cuts to dairy in the WIC food packages. WIC is a vital program ensuring that pregnant women, new mothers, infants, and children have access to key nutrients that may be lacking in their diets, so decreasing the amount of dairy decreases the nutrients they are accessing through it. NMPF president and CEO Gregg Doud responded, “This rule works against the WIC Program’s goal of ensuring all Americans have consistent and equitable access to healthy, safe, and affordable foods.” Milk, cheese, and yogurt are three of the five top redeemed items through WIC, according to NMPF and IDFA. While disappointed in the cuts to the dairy allotments the groups appreciate the rule’s requirement that states offer lactose-free milk and a wider selection of product package sizes. *********************************************************************************** USDA Trade Mission to Pinpoint New Opportunities for U.S. Agribusinesses in India Undersecretary Alexis M. Taylor will lead a Department of Agriculture agribusiness trade mission to New Delhi, India, April 22-25. The delegation of 47 businesses, organizations, and officials from 11 state departments of agriculture speaks volumes about the export sales opportunity the world's most populous country represents for U.S. food and agricultural producers, according to USDA. Taylor says, "India represents a growth economy for U.S. agribusinesses seeking to capture an increasing share of the household food purchases in the fifth-largest economy in the world." Last year, India reduced tariff requirements for U.S. poultry products, vegetables, fruits, pulses, and tree nuts – strengthening the agribusiness trade relationship between the United States and India. While on the trade mission, participants will engage in business-to-business meetings and site visits to build new trade linkages, strengthen existing partnerships, observe U.S. products in the marketplace, and discover the latest Indian consumer food trends. Participants will also receive in-depth market briefings from USDA's Foreign Agricultural Service. *********************************************************************************** Nutrien Announces Multi-Year Commitment to the National FFA Organization Nutrien Ag Solutions recently announced a multi-year commitment of nearly $850,000 to the National FFA Organization in support of its commitment to shape future agriculture leaders. The yearly donation of $282,500 supports a variety of National FFA Organization programs and events during the three years, from 2024 to 2026. The support includes Future Farmers of America members in competitive events, assisting FFA advisors in their professional development, as well as providing National FFA Officers with a $10,000 scholarship at the end of their year of service. In addition, the donations will also support alumni chapter grants. National FFA Foundation President Molly Ball says, “Nutrien Ag Solutions has been unwavering in its support and continues to see the potential leaders in our members and advisors.” Nutrien Ag Solutions provides crop inputs and services, providing solutions through a global Retail network of trusted crop consultants at more than 2,000 locations.
| Rural Advocate News | Wednesday April 10, 2024 |
Wednesday Watch List Markets The U.S. Labor Department's consumer price index for March will be out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m. Minutes from the latest Federal Reserve meeting are set for 2 p.m., the same time as the Treasury Department's monthly report on the federal budget for March and USDA's release of Historical Crop Production. Weather A storm system that has already brought flooding rain to portions of the Delta region this week continues to develop on Wednesday across the same area. In addition to the heavy rain, severe weather looks likely near the Gulf Coast as well. The storm system will move northeast into the Midwest Wednesday night and into Thursday, spreading rainfall to more areas of the country.
| Rural Advocate News | Tuesday April 9, 2024 |
Coalition Formed to Advocate for Access to Crop Protection Tools Grower and industry groups from across the country have joined together to support a new coalition, the Modern Ag Alliance. The coalition seeks to protect farmers' access to critical crop protection tools to ensure a robust and affordable food supply. Working alongside federal and state policymakers, more than 60 diverse agriculture organizations, led by Bayer, have aligned to voice their support for legislative solutions that ensure consistency in labeling and the continued domestic availability of innovations for farming. The Modern Ag Alliance is working with agricultural partners and policymakers nationwide to reinforce the importance of science-based regulation. Specifically, the need to ensure any pesticide registered with the EPA - and sold under a label consistent with the EPA's own determinations - is sufficient to satisfy requirements for health and safety warnings. Jess Christiansen, Head of Crop Science Communications for Bayer, says, "Farmers need these critical innovations now more than ever - and certainty to ensure the continued long-term availability of products like glyphosate." *********************************************************************************** CropLife International Joines Calls for Action over Illicit Pesticide Sales CropLife International recently joined calls for greater control measures and enforcement regarding the online sale of illicit pesticides. The move follows a report by the Transnational Alliance to Combat Illicit Trade regarding counterfeit and illicit crop protection products on e-commerce platforms. The report, Tackling the Sale of Illicit Pesticides on E-Commerce Platforms, highlights the presence of counterfeit and illicit crop protection products across all major e-commerce platforms and points to the large gap between the platforms' stated policies, their enforcement, and how lawmakers are regulating online sales. As the global association for the plant-science industry, CropLife International worked with the alliance in developing the report, and is committed to supporting their calls to implement the recommendations it contains. CropLife International President and CEO Emily Rees adds, “This puts the spotlight on the platforms to step up and ensure that the purpose for which these products are designed - to nurture and protect agriculture - is not turned on its head through illegal activity on e-commerce.” *********************************************************************************** Report: Missouri Farmers Facing Lower Spring Income The University of Missouri predicts another decline in net farm income this spring. The 2024 Missouri Farm Income Outlook offers a state-level glimpse at projected farm financial indicators, including farm receipts, production expenses and other components that affect net farm income. Projections from the report suggest that declining market receipts and lower crop prices play a role in the estimated $0.8 billion decrease in net farm income for 2024. Scott Brown of the University says, "Although decreased production expenses offer some relief, reduced livestock inventories and lower crop prices are impacting Missouri producers — leading to the projection of lower farm receipts in 2024," Production expenses are forecast to decrease by 5 percent this year. According to the report, Missouri's net farm income is projected to drop 18 percent in 2024, compared to an estimated 25.5% decrease in U.S. net farm income. Looking ahead, the report estimates that Missouri's net farm income will increase in 2025 and 2026. *********************************************************************************** Food Insecurity in U.S. Households Varies Across Race and Ethnicity New data from USDA's Economic Research Service finds that food insecurity varies across races and ethnicities. Researchers say that from 2016 to 2021, 11.1 percent of U.S. households experienced food insecurity, meaning they had difficulty providing enough food for all their members because of a lack of resources. Over the same period, 4.3 percent of U.S. households experienced very low food security, a more severe form of food insecurity in which food intake is reduced and eating patterns are disrupted. Households headed by a reference person who identified as American Indian and Alaska Native, Multiracial—American Indian-White, Black, Multiracial—All Other Combinations, Multiracial—Black-White, Hispanic, and Hawaiian and Pacific Islander, had significantly higher rates of food insecurity than the all-household average. Prevalence of very low food security followed a similar pattern and was statistically significantly different from the all-household prevalence for most race and ethnicity categories. *********************************************************************************** Farm Bureau Ag Innovation Challenge Contestants Vie for $100K The American Farm Bureau Federation, in partnership with Farm Credit, is seeking entrepreneurs to apply online by June 15 for the 2025 Farm Bureau Ag Innovation Challenge. Now in its 11th year, this national business competition showcases U.S. startup companies developing innovative solutions to challenges faced by America’s farmers, ranchers and rural communities. The overall winner of the competition will receive $100,000 in startup funds, the runner-up will be awarded $25,000 and two additional business owners who advance to the final four round will receive $10,000. Farm Bureau is offering a total of $145,000 in startup funds throughout the course of the competition. After the application period closes, ten semi-finalist teams will be selected and announced on Sept. 3. Next, the ten semi-finalist teams will pitch virtually to compete for a spot in the final four round of the contest. Applications must be received by 11:59 p.m. Eastern Daylight Time on June 15. Learn more at fb.org. *********************************************************************************** Gas, Diesel, Higher in the Last Week After a week in which the national average held unchanged, gas prices resumed their climb, rising 6.5 cents compared to a week ago at $3.57 per gallon. The national average is up 17.1 cents from a month ago but 0.8 cents per gallon lower than a year ago. The national average diesel price increased 3.1 cents in the last week and stands at $4.02 per gallon—15 cents lower than one year ago. GasBuddy's Patrick De Haan says, "With oil prices rising to nearly $87 per barrel last week, their highest since October, we are not only facing the seasonal factors that push prices up—refinery maintenance, the switch to summer gasoline, and rising demand—but also escalating crude oil prices." As OPEC maintains strict output cuts, oil prices have continued to find support, climbing on geopolitical escalations in the Middle East and worry about Israel and Iran attacking each other amidst rising global demand.
| Rural Advocate News | Tuesday April 9, 2024 |
Tuesday Watch List Markets There are no significant reports set for Tuesday, but traders will be watching South American weather forecasts and anything else that might get the markets' attention. USDA's next WASDE report will be out Thursday at 11 a.m. CDT. Weather A system in northern Mexico will lead to scattered rain showers and strong to severe thunderstorms from Texas into the Southern Delta Tuesday. Areas of heavy rainfall and flooding are possible in Louisiana, Arkansas, and Mississippi Tuesday as rainfall could approach 3-4 inches across parts of these states.
| Rural Advocate News | Monday April 8, 2024 |
Food Prices Halt Seven-Month Decline The United Nations Food and Agricultural Organization’s Food Price Index was 118.3 points in March, up 1.3 points or 1.1 percent from its revised February level. The rise in prices was driven by higher price indices for vegetable oils, dairy products, and meat. That slightly more than offset decreases in those for sugar and cereals. Before the uptick in March following a seven-month-long decline, the index was down almost 10 points from the same time last year. The biggest rise was in the Vegetable Oil Price Index, which averaged 130.6 points in March, up 9.7 points or eight percent from February, and reached its highest average in a year. The biggest drop was in the Sugar Price Index, which averaged 133.1 points in March, down 7.6 points or 5.4 percent from February after two consecutive monthly increases. However, it’s still 6.1 points above its value from a year ago. *********************************************************************************** U.S. Trade Gap Hits $68 Billion In February, America's trade deficit reached $68.9 billion, the highest disparity in almost a year. The Hill says import values exceeded exports by more than analysts were expecting. The total value of imports hit $331.9 billion, while exports were $263 billion, and the overall deficit rose 1.9 percent during the month. Republicans on Capitol Hill have expressed frustration with what they call an unambitious trade strategy and inadequate initiatives undertaken by U.S. Trade Representative Katherine Tai. While they expect trade fluctuations, Republican senators wrote to Tai saying the current sharp decline in America’s agricultural exports is directly attributable to a trade strategy that doesn’t meaningfully expand market access or reduce barriers to trade. February trade data shows a year-to-year decline of $729 million in the foods, feeds, and beverages category of national exports. Soybean exports dropped by $1.9 billion, wheat dropped by $429 million, and dairy products by $97 million. *********************************************************************************** AFT is Looking for Influencers American Farmland Trust is calling for agricultural influencers working in corn, soy, wheat, cotton, and dairy systems to apply for the chance to attend AFT’s Advanced Soil Health Training. It’s a one-year training course made up of four two-day training sessions in the Midwest, Southeast, Mid-Atlantic, New York, and New England. Influencers are soil-health successful farmers and other agricultural professionals who are ready to become Soil Health Advisors to farmers looking to implement climate-smart practices. The training is intended to scale up the adoption of climate-smart practices by establishing trained leaders in farming communities who can provide technical guidance and facilitate learning. AFT says the Advanced Soil Health Training Program is designed for farmers and farm advisors who share an interest in improving soil health. Participants will improve their understanding of the science of soil health, soil health practices, troubleshooting, adapting strategies, and how to effectively communicate about practice adoption. *********************************************************************************** AFB Honors 20th Women’s Boot Camp Graduates Fifteen farm and ranch women leaders graduated from the spring session of the Women’s Communications Boot Camp hosted by the American Farm Bureau Federation. The agricultural leaders completed an intensive four-day course that featured hands-on sessions focused on public speaking, working with the media, and messaging. Program graduates will use their training to strategically support the Farm Bureau’s priority issues. This includes participating in local media opportunities, sharing information with elected officials, and joining social media campaigns that spotlight modern agriculture. “Boot Camp class members are ‘all-in’ when it comes to teamwork, supporting one another, networking, and thoughtfully considering how what they’ve learned relates to agricultural advocacy,’ says Isabella Chism (CHIZ-um), chair of the AFB Women’s Leadership Committee. “They’ve been both fully present and forward-thinking about how to apply their skills to benefit agriculture’s future.” AFB President Zippy Duvall says,” We’re proud to recognize the women who completed this training.” *********************************************************************************** Export Sales Down Across the Board The USDA says sales of soybeans and grains to overseas buyers dropped during the week ending on March 28. Soybean sales dropped to 194,200 metric tons, down 26 percent from the previous week and 54 percent from the prior four-week average. The report says China was the big buyer at 154,000 metric tons, followed by Egypt and the Netherlands. Exports for the week dropped 30 percent to 549,000 tons. Corn sales for export were down 21 percent from the previous week and four-week average to 948,000 tons. Japan bought 339,000 tons, followed by Mexico and Colombia. Exports for the week reached 1.64 million tons, the highest amount since the marketing year began, and up 33 percent over the prior week. Wheat sales reached 16,000 tons, down 95 percent week-to-week and 89 percent from the four-week average. USDA said exports of wheat rose 27 percent during the week to 518,000 tons. *********************************************************************************** AFN Sets Criteria for Regenerative Beef Production The American Farmers Network has established and implemented criteria for regeneratively raised beef standards throughout its network of family ranchers. AFN already has USDA approval to use the Regenerative Agriculture claim on its packaging for products currently being distributed throughout retail chains nationwide. That means they’re perfectly situated to pioneer the development of comprehensive certification criteria for regenerative grass-fed beef production across the entire beef category. The collaboration between AFN and third-party certifying organizations will mark a significant step toward establishing transparent and concise certification standards for the beef industry. Drawing from the principles of regenerative agriculture, which prioritizes soil health, biodiversity, and animal welfare, AFN aims to provide consumers with transparent and trustworthy meat choices. American Farmers Network says it believes better meat should be accessible to everyone. Through partnerships, AFN is hoping to incentivize more producers to adopt regenerative farming practices and nurture a more sustainable agricultural landscape.
| Rural Advocate News | Monday April 8, 2024 |
Monday Watch List Markets Back from the weekend, traders will be monitoring the latest weather forecasts, especially from South America. USDA's report of weekly export inspections is due out at 10 a.m. CDT Monday, followed by NASS's weekly Crop Progress report at 3 p.m. Weather Light rain showers or a mix of rain and snow will continue across the Midwest Monday as a disturbance exits the North-Central U.S. Meanwhile, another disturbance will provide scattered, heavy rain showers and severe thunderstorms across Texas, southern Oklahoma, Louisiana, and Arkansas later today.
| Rural Advocate News | Friday April 5, 2024 |
NCGA: No Duties on Key Herbicide Imports Growers need reliable access to essential farming tools. National Corn Growers Association President Harold Wolle warned the U.S. International Trade Commission of the consequences for America’s farmers if the agency grants a petition for levying tariffs on imported 2,4-D, an herbicide that’s been on the market for decades. “This scenario under consideration has the potential to limit imports of an important product, raise its price, and create a supply shortage, all while raising the cost of production in an already tight market,” Wolle says. “Farmers are price takers, not makers in selling commodities, and closely managing production costs is crucial to success. Thus, tariffs on these products would create an even more difficult economic scenario for me, my family, and the farmers I represent.” Wolle’s testimony comes after Corteva, Inc., filed antidumping and countervailing duty petitions with the ITC on March 14 over India and China’s trade practices involving the herbicide. *********************************************************************************** HPAI Infection Found in Ohio Dairy Cattle The Ohio Department of Agriculture received confirmation that Highly Pathogenic Avian Influenza has been found in an Ohio dairy herd. The state’s Department of Agriculture says it’s the first case of HPAI in an Ohio livestock operation. The dairy operation received cows from a Texas dairy on March 8, which was the same dairy that later reported a confirmed HPAI detection in Texas. Ohio’s animal health officials were notified when the livestock began showing clinical signs compatible with sick, lactating dairy cows in other states. The USDA, Food and Drug Administration, the Centers for Disease Control, and state veterinary health officials are investigating the emerging illness among dairy cattle that’s causing decreased lactation, low appetite, and other symptoms. The FDA and CDC say there is no concern about the safety of commercially pasteurized dairy products due to federal health requirements and pasteurization. The public health risk associated with HPAI remains low. *********************************************************************************** U.S. Fills Beef Tariff Quota in Record Time The U.S. quota for low-tariff beef imports in Japan was filled by the end of February. Nikkei (NEE-kay) Asia says that’s the fastest rate since 2020. That’s not good news for Japan either. The rest of the year, beef imports are subject to higher tariffs, which means Japan will face challenges to increasing exports of its premium Wagyu beef supplies. The import quota resets yearly on January 1. The import quota has already reached the 65,005-ton limit and closed on February 27. Brazil also shipped beef to the U.S. ahead of the new year. Because of soaring inflation, Brazil aggressively marketed its lower-cost beef. That means Japan and Brazil appear to have used up their tariff quota in the first two months of the year, which is two months sooner than in 2023. The shared quota has no country or region-specific caps and is effectively a first-come, first-served system, creating intense competition. *********************************************************************************** $1.5 Billion Available for Conservation and Climate-Smart Ag Ag Secretary Tom Vilsack announced that $1.5 billion is available in fiscal year 2024 to invest in partner-driven conservation and climate solutions through the Regional Conservation Partnership Program. The USDA is accepting project proposals now through July 2 that will help farmers, ranchers, and forest landowners adopt and expand conservation strategies to enhance natural resources while tackling the climate crisis. The projects in turn can save farmers money, create new revenue streams, and increase productivity. These investments are estimated to support over 180,000 farms and over 225 million acres in the next five years. “We had unprecedented demand for the Regional Conservation Partnership Program last year, showing the robust interest in conservation from farmers and ranchers,” Vilsack says. “Through the Inflation Reduction Act, we’re able to invest even more this year in this important program, increasing our impact across the landscape.” NRCS will host four webinars to provide additional information. *********************************************************************************** Michigan Growers Approve R&D Continuation Michigan’s apple, cherry, peach, and plum producers have approved a referendum to continue the Michigan Tree Fruit Research and Development Program. Established in 2014, the Michigan Tree Fruit Research and Development Program was developed to improve the economic position and competitiveness of the tree fruit industry by supporting the fruit research stations, research, and extension programs. The program is a public body independent of the Michigan Ag Department and comprised of nine tree fruit producers appointed to the positions. The program will continue an additional five years and end on March 31, 2029. Michigan tree fruit may be assessed at a maximum rate of $2.50 per ton for cherries, four cents per hundredweight for apples, $2 per ton for peaches, and $4.50 per ton for plums sold. 96 voters, or sixty-three percent of the total number of voters, representing over 294 million pounds of apples, cherries, peaches, and plums, approved the measure. *********************************************************************************** CHS Reports Solid Second-Quarter Earnings CHS, Inc., released earnings results for its second quarter that ended on February 29. The company reports quarterly net income of $170.3 million and revenues of $9.1 billion. That compares to net income of $292.3 million and revenues of $11.3 billion in the second quarter of fiscal year 2023. For the first six months of fiscal year 2024, the company reported a net income of $693.2 million and revenues of $20.5 billion. “The first six months of our fiscal year have delivered overall good financial results,” says Jay Debertin, president and CEO of CHS. “Our supply chain investments and well-diversified portfolio, empowered by our people and technology, are helping us perform well as we connect farmers and local cooperatives with the inputs and services they need to help feed the world.” Among the report highlights, the CHS ag segment earnings rose as agronomy markets were stronger compared to the previous year.
| Rural Advocate News | Friday April 5, 2024 |
Friday Watch List Markets The U.S. Labor Department's nonfarm payrolls and unemployment rate for March will be out at 7:30 a.m. CDT Friday. Traders continue to keep watch over South American weather, events in the Middle East and export news. Weather A storm system continues in the Northeast with scattered showers but most of the country is dry until you get to the West where a larger trough continues to spread showers through the region throughout the day, which includes the western Canadian Prairies, with its eyes on the Plains for the weekend.
| Rural Advocate News | Thursday April 4, 2024 |
Farmers, Ethanol Industry Call for E15 Waiver Almost 1,000 farmers, ethanol industry workers, and other supporters from across the U.S. sent a letter to the administration today calling for action on summertime E15. They’re asking for a waiver to allow continued access to E15 throughout the upcoming summer driving season. “With the summer 2024 driving season a few months away, we are asking the administration to take additional action that will ensure consumers across the nation have uninterrupted access to lower-cost, lower-carbon E15,” the letter says. “Allowing gasoline blenders and retailers to sell E15 this summer would help moderate prices at the pump, extend fuel supplies, and deliver relief to American families at a time of year when gas prices are typically at their highest.” The letter also points out that E15 is selling for 10-25 cents per gallon less than standard E10 gasoline, allowing the average American household to save up to $200 a year on gasoline. *********************************************************************************** Smallest Drought Area Since 2020 The National Oceanic and Atmospheric Administration reported a sizable drop in drought areas around the U.S. “After wet weather and an early spring across much of the country, drought has decreased to around 18 percent of the U.S. by the end of March, down from 20 percent at the end of February, and from 36 percent at the beginning of winter,” NOAA says. “That’s the least amount of drought across the country since May 2020.” Also, the most intense categories of Extreme and Exceptional Drought covered only about one percent of the country at the end of March, also the lowest amount since May 2020. Farm Policy News says some of the most severe drought conditions currently exist in New Mexico, where 3.51 percent of the state is experiencing exceptional drought and 16.7 percent of the state is experiencing extreme drought. Iowa went from 35 percent extreme drought to 11 percent. *********************************************************************************** Nebraska Issues Restrictions Due to HPAI The Nebraska Department of Agriculture is monitoring the direction of the Highly Pathogenic Avian Influenza virus in dairy cattle. HPAI has been detected in lactating dairy cattle in Texas, New Mexico, Kansas, Michigan, and Idaho. At this time, there have been no reported detections of HPAI in Nebraska dairy cattle and other livestock. In an effort to protect Nebraska’s dairy herd, the NDA is issuing an import order effective immediately. The importation order will require all breeding female dairy cattle entering Nebraska to obtain a permit issued by NDA before entry. “Animal health and disease control are essential to the livestock industry and health of Nebraska’s economy,” says NDA director Sherry Vinton. “NDA is closely monitoring this HPAI illness in livestock.” She also says the department will do what’s right to advocate for Nebraska producers, protect the health of Nebraska livestock, and minimize the impact HPAI will have in the state. *********************************************************************************** Sorghum Producers 2024 Yield Contest Open for Entries National Sorghum Producers will now accept entries for the 2024 National Sorghum Yield Contest. State and national winners are selected from contestants split into East and West regions for the Irrigated, Dryland No-Till, and Dryland Tillage Divisions. One overall winner is selected for Food Grade. The entry deadline for the 2024 National Sorghum Yield Contest is November 26, 2024. A complete field of ten or more continuous acres, planted in the sorghum seed variety named on the entry form, will be designated as the contest field. “With improvements to the contest and the continuous evolution of sorghum and seed genetics, I’m confident we’re setting the stage for unprecedented advancements in sorghum production,” says NSP CEO Tim Lust. “I encourage growers to join us in this journey toward sustainable excellence and look forward to celebrating the yield accomplishments in the upcoming growing season.” For more information or an application, go to SorghumGrowers.com. *********************************************************************************** AEM Announces Second “Ag on the Mall” Event The Association of Equipment Manufacturers will showcase the Future of Food and Farming in Washington, D.C., during the second Celebration of Modern Ag on the National Mall. On May 6-8, more than 20 AEM members will be in the nation’s capital between the Smithsonian Museums to illustrate the equipment manufacturing industry’s contribution to sustainably providing for a growing world. “AEM is honored to lead our member companies and other industry partners in showcasing the sustainability of our food system on the National Mall,” says AEM Senior Vice President Curt Blades. “This is a fantastic opportunity to demonstrate how technologically advanced farms and ranches are today, as well as emphasize why the needs of rural America must be at the forefront of policies that lawmakers support.” AEM and its members will not be alone in educating policymakers about the future of food and farming. A record number of partners will also participate. *********************************************************************************** USDA Seeks Nominees for Mushroom Council The USDA wants nominations for the Mushroom Council to fill three seats with terms expiring on December 31, 2027, and one seat whose term will expire on December 31, 2025. Nominees may seek nomination to the council for all the open seats that they are eligible for. Applications are available now at mushroomcouncil.com. The nine-member council includes eight producer members and one importer member. More information is available on the Mushroom Council webpage on the AMS website. The Agricultural Marketing Service policy is that the diversity of the boards, councils, and committees it oversees should reflect the diversity of its industries in terms of the experience of members, methods of production and distribution, marketing strategies, and other distinguishing factors. Throughout the full nomination process, the industry must conduct extensive outreach, paying particular attention to reaching underserved communities and considering the diversity of the population served. Again, go to mushroomcouncil.com for information.
| Rural Advocate News | Thursday April 4, 2024 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, the U.S. trade deficit for February and an update of the U.S. Drought Monitor. The Energy Department's weekly natural gas storage report at 9:30 a.m. Weather A storm continues to wind down over the Great Lakes, but with heavy snow in the Northeast for Thursday. At the same time, a system is building in the West, which will bring widespread precipitation there and up into the western Canadian Prairies for the next few days. Quieter and warmer conditions are briefly taking over the middle of the country.
| Rural Advocate News | Wednesday April 3, 2024 |
Farmer Sentiment Improves in March The Purdue University/CME Group Ag Economy Barometer shows an improved outlook for U.S. farmers during March. The index rose to 114, a three-point increase over February. While the Index of Current Conditions fell by two points to 101, the Index of Future Expectations climbed to 120, up by five points compared to February. The disparity between the two was primarily attributable to farmers’ perceptions that a financial downturn took place over the past year, coupled with expectations for some improvement over the next 12 months. Producers’ expectations for interest rate changes have shifted, which could help explain why producers look for financial conditions to improve. This month, 48 percent of respondents say they expect a decline in the U.S. prime interest rate over the next year. That’s up from 35 percent in December. High input costs continue to be the number one concern, with 36 percent of producers expressing worry. *********************************************************************************** HPAI Confirmed at Texas Poultry Facility Texas Agriculture Commissioner Sid Miller confirmed that the Cal-Maine Foods, Inc. poultry facility in Farewell, Texas has received official notification of a positive test for HPAI. Cal-Maine will be required to depopulate 1.6 million laying hens and 337,000 pullets at their facility. This accounts for approximately 3.6 percent of the company’s total flock as of March 2, 2024. Production at the facility has temporarily ceased as Cal-Maine Foods initiates the protocols prescribed by the USDA. “This is absolutely devastating news for Cal-Maine and the entire Panhandle region, which has already suffered so much,” Miller says. “Given this latest development, all producers must practice heightened biosecurity measures because the rapid spread of the virus means we have to act quickly.” This news comes after the CDC confirmed a positive test of H5N1, a form of HPAI, in a Texas dairy worker who had direct contact with cattle suspected of being infected. *********************************************************************************** Farm Bureau Analyzes Bridge Collapse Impact on Ag On March 26, a container ship rammed into Baltimore’s Francis Scott Key Bridge, resulting in in the structure’s collapse and six lost lives. The American Farm Bureau says there will be an impact on American agriculture. On the export side, in 2023, over 605,000 metric tons of agricultural products were exported from Baltimore, corresponding to nearly $650 million in value. This equates to 0.3 percent of total U.S. ag exports by quantity and 0.4 percent by value. In terms of volume, 415,678 metric tons of soybeans were exports from Baltimore in 2023, or 0.9 percent of all U.S. soybean exports. In terms of the largest export destinations for agricultural products leaving Baltimore, they include Taiwan, China, and Colombia. On the import side, more than 1.59 million metric tons of agricultural products entered the U.S. through Baltimore, corresponding to almost $3.34 billion in value. The most imports in Baltimore come from Brazil. *********************************************************************************** Texas Cattle Raisers Still Accepting Disaster Applications The Texas & Southwestern Cattle Raisers Association says applications remain open for help from the TSCRA Disaster Relief Fund. The help is available for cattle raisers impacted by wildfires in the Texas Panhandle and Western Oklahoma. The cattle raisers association will distribute financial assistance to reduce the economic burdens incurred by cattle raisers from recent wildfire damages that were not covered through insurance or other means of aid. Ranchers and landowners from disaster-declared counties impacted by recent wildfires are eligible to apply in the open application period. The current application period does not have a set closing date, and it will remain open to ensure applicants can access funding. Producers are encouraged to apply within the first 60 days of the damage. “As long as we have the funds and people continue to make donations, we will get funding to people who need help,” says TSCRA president Carl Ray Polk, Jr. *********************************************************************************** NACD Supports Conservation in Federal Spending Bill The National Association of Conservation Districts and a coalition of agriculture and conservation groups sent a letter to House and Senate leadership on farm spending. NACD is requesting at least $1.2 billion for NRCS Conservation Operations and full authorized funding for farm bill conservation programs in fiscal year 2025. More than 85 conservation and agriculture groups signed the letter to support the requests. “Funding for NRCS Conservation Operations was reduced in the final Fiscal Year 2024 spending bill, so it’s critical that we make a strong case for reversing course as Congress develops FY 2025 appropriations bills,” says NACD President Kim LaFleur. “Nearly 100 conservation and agriculture groups signing the letter sends a clear message to Congress that increasing funding for CTA is vital to supporting conservation delivery systems and putting effective conservation practices on the ground in all parts of the country.” For more information, anyone interested can go to nacdnet.org. *********************************************************************************** New Technology Key to Increasing Ag Productivity Technological developments in agriculture have enabled continued output growth without requiring many additional inputs. Innovations in animal and crop genetics, chemicals, equipment, and farm organization have made it possible for total agricultural output to nearly triple between 1948 and 2021. During that period, a USDA report says the amount of inputs used in farming declined slightly over time, meaning that the growth in agricultural output over the long term has depended on increases in total factor productivity. TFP measures the amount of agricultural output produced from the combined inputs like labor, capital, and intermediate inputs employed in farm production. Therefore, growth in TPP indicates positive changes in the efficiency with which inputs are transformed into outputs. The USDA report says it can also be seen as an indicator of technical change. In the short term, total output growth and estimated TFP growth can be affected by random events like adverse weather.
| Rural Advocate News | Wednesday April 3, 2024 |
Wednesday Watch List Markets The Energy Department's weekly inventory report is due out at 9:30 a.m. CDT Wednesday. Traders continue to monitor South American weather and, after Monday's attack, will keep an eye on events in the Middle East. Weather A storm system continues to spin around the Great Lakes on Wednesday, with a band of heavy snow in and around Wisconsin through this morning before winding down this afternoon. Showers will remain around the Midwest through Thursday, however, as will a burst of some cooler temperatures that is filling in behind a cold front that is moving off the East Coast. Another storm system is heading into the West as our active spring pattern continues.
| Rural Advocate News | Tuesday April 2, 2024 |
Beef and Pork Exports Bring Significant Returns to Corn, Bean Producers Beef and pork exports of $18.1 billion in 2023 had a significant impact on the corn and soybean industries. An independent study released by the U.S. Meat Export Federation quantified the returns that beef and pork exports brought to corn and soybean producers nationally and on a state-by-state level for leading corn and soybean-producing states. Nationally, U.S. pork and beef exports contributed an estimated total economic impact of 14.6 percent per bushel to the value of corn and 13.9 percent per bushel to soybeans in 2023. The study shows that despite the headwinds facing the red meat industry in 2023, exports contributed substantially to the value of U.S. corn and soybeans. Beef and pork exports accounted for 512.7 million bushels of U.S. corn usage, equating to a market value of $3.05 billion. Pork exports accounted for 96.8 million bushels of U.S. soybean usage, equating to a market value of $1.36 billion. *********************************************************************************** USTR Releases a Report on Foreign Trade Barriers U.S. Trade Representative Katherine Tai released the 2024 National Trade Estimate Report on Foreign Trade Barriers. It provides a comprehensive review of the significant foreign barriers to U.S. exports of goods and services, U.S. foreign direct investments, and U.S. electronic commerce in key export markets for America. The NTE Report highlights cross-cutting barriers affecting U.S. agricultural trade, including opaque and burdensome facility registration requirements like Indonesia’s unnecessary requirements for dairy, meat, and rendered products. It includes China’s requirements across a wide range of food and agricultural products, such as sanitary and phytosanitary measures that aren’t based on science, are maintained without scientific evidence, or are applied beyond the necessary extent. Other significant barriers include Mexico’s policies regarding agricultural biotechnology products, and the European Union’s non-science-based policies affecting innovative crop protection policies. The U.S. Trade Representative’s Office is determined to ensure that producers can compete on a level playing field globally. *********************************************************************************** NMPF Comments Put Farmers First The National Milk Producers Federation submitted its final formal legal brief on behalf of the Federal Milk Marketing Order modernization to USDA. The brief, submitted on March 29 and hand-delivered to USDA, emphasized that those farmers are the reason the system exists, and by law, their priorities are pre-eminent in USDA’s consideration of a final plan. “We’ve spent almost three years assembling a broad consensus among dairy farmers that modernization needs to succeed,” says Gregg Doud, President and CEO of NMPF. “Our approach is careful and comprehensive, and it benefits farmers of all regions and types of operations.” Among the proposals, NMPF favors returning to the “higher of” Class 1 mover. They also want to discontinue the use of barrel cheese in the protein component price formula. NMPF also wants to extend the current 30-day reporting limit to 45 days on forward-priced sales of nonfat dry milk and dry whey. *********************************************************************************** Public Perceptions of the U.S. Food System The Gardner Food and Agricultural Policy Survey recently completed two years of tracking consumer sentiment on a multitude of food and agricultural policy issues. The survey found that a large majority of consumers believe the food system produces food that tastes good, is accessible, and safe to eat. Consumers also believe the American food system produces food that’s healthy and sustainable and provides healthy returns to supply chain members. Perceptions of the food system seem relatively stable. Perceptions of food system affordability have seen the most change during the past two years. The share of consumers who agree that food is affordable continued to decline during the past two years, hitting a low of 49 percent agreement in August 2023. However, consumer outlook on affordability has gradually started to improve since then. Looking at different segments of the supply chain, the study finds that farmers continue to be the most trusted. *********************************************************************************** HPAI Found in Idaho and Michigan Dairy Cattle Officials from the Animal and Plant Health Inspection Service have confirmed the presence of Highly Pathogenic Avian Influenza in a Michigan dairy herd. That herd recently added cattle from Texas, one of the first states to report HPAI in dairy cattle. A University of Minnesota Extension article says APHIS also shared presumptive positive samples from New Mexico, Idaho, Ohio, and Texas. The Idaho Department of Agriculture announced cattle in the state have tested positive for HPAI. HPAI historically affects birds but has been documented in cats, skunks, and foxes. The virus found in Michigan is very similar to the viruses found in Texas and Kansas and appears to have been introduced into the cattle by wild birds. In Idaho, the virus may have been transmitted from cow to cow. USDA has stated that initial testing has not found changes to the virus that would make it easier to transmit to humans. *********************************************************************************** Clean Fuels Disappointed in GHG Standards Clean Fuels Alliance America expressed extreme disappointment in the Environmental Protection Agency’s final Greenhouse Gas Emissions Standards for heavy-duty vehicles. In the rule, EPA adopts new standards that are designed expressly to incentivize electric vehicles for model year 2027-2032 heavy-duty vehicles. The standards are part of the GHG emissions regulations for trucks and buses. EPA didn’t evaluate the use of biodiesel and renewable diesel as part of engine systems to meet the new standards, focusing instead primarily on tailpipe emissions. “EPA’s rule flatly dismisses the benefits of biodiesel and renewable diesel as the lowest-cost and most widely available options to kickstart decarbonization of the heavy-duty vehicle sector,” says Kurt Kovarik of Clean Fuels. “There should be no uncertainty that biodiesel and renewable diesel also reduce criteria pollutants from heavy-duty vehicles, which will continue to be manufactured and used during the timeframe of this rule. They merit a role in decarbonization.”
| Rural Advocate News | Tuesday April 2, 2024 |
Tuesday Watch List Markets A report on U.S. factory orders for February is set for 9:00 a.m CDT. Traders will keep their attention on South American weather and any updates, concerning recent infections of highly pathogenic avian influenza in cattle and/or humans. Weather A storm system is moving from the Southern Plains and deepening in the Midwest for Tuesday. Scattered showers and thunderstorms, including severe weather, will be possible from the Midwest to the Gulf Coast. Some flooding may occur in the Ohio Valley. At the same time, it will be just cold enough to produce some heavier snow around Wisconsin and the Upper Peninsula of Michigan later Tuesday and going into Wednesday.
| Rural Advocate News | Monday April 1, 2024 |
USDA Releases Prospective Plantings Report The USDA’s Prospective Plantings Report shows corn planted area will be 90 million acres this year, down five percent or 4.61 million acres from last year. Soybean planted area for 2024 is estimated to be 86.5 million acres, up three percent from last year. The all-wheat planted area for this year is estimated at 47.5 million acres, four percent below 2023 for comparable states. The 2024 winter wheat planted area, at 34.1 million acres, is down seven percent from last year and one percent from the previous estimate for comparable states. Of the total, about 24.3 million acres are Hard Red Winter Wheat, 6.26 million acres are Soft Red Winter, and 3.59 million acres will be White Winter. The all-cotton planted area for 2024 is estimated at 10.7 million acres, up four percent from last year. Upland area is estimated at 10.5 million acres, up four percent from last year. *********************************************************************************** Stocks Report Shows More Corn, Beans in Storage The USDA’s Grain Stocks Report shows corn stocks in all positions on March 1, 2024, totaled 8.35 billion bushels, up 13 percent from March 1, 2023. Of the total stocks, 5.08 billion bushels were stored on farms, 24 percent higher than last year. Off-farm stocks were down one percent from a year ago. Soybeans stored in all positions on March 1, 2024, totaled 1.85 billion bushels, nine percent higher than March 1, 2023. Soybean stocks on farms are estimated at 933 million bushels, 24 percent higher than a year ago. Off-farm stocks were down three percent from last March. All wheat in stored positions on March 1, 2024, totaled 1.09 billion bushels, up 16 percent from a year ago. On-farm stocks are estimated at 272 million bushels, up 20 percent from last March. Durum wheat stocks in all positions on March 1, 2024, totaled 36.6 million bushels, two percent above 2023. *********************************************************************************** Skills Needed in the Agricultural Workforce U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in the agri-food industry. AgCareers.com surveyed those employers to gain deeper insights into the skills they seek and identify the most significant skill gaps in the workforce. Employers ranked “problem solving and decision making” as the most necessary skills for all employees, followed by “organization and planning skills,” and “teamwork.” Problem-solving and decision-making were also identified as areas with the most significant gap for both current employees and new graduate hires. Only 18 percent of U.S. employers said that new graduate hires were adequately prepared with work-ready skills upon hire, whereas 76 percent said experienced new hires were equipped with those skills. Survey data also examined industry-specific skills required for employee success, such as sustainability, data science, and food science. Results indicate the biggest knowledge needs were in agronomy and precision agriculture, and animal sciences. *********************************************************************************** Driving Corn Demand Through Renewable Chemicals At the Advanced Bioeconomy Conference in Washington, D.C., the National Corn Growers Association sponsored a special session on renewable chemicals and other materials. The session outlined the national incentive for biobased chemicals and renewable materials that NCGA, the Biotechnology Innovation Organization, and other partners have been working on. The panel was moderated by Sarah McKay, NCGA Market Development Director. “U.S. corn farmers continue to produce an affordable, high-quality, and reliable crop,” she said. “That crop can be turned into more than food, fuel, and fiber.” The corn kernel can be utilized in so many ways, which is why NCGA focuses on new uses for corn as an industrial feedstock. “NCGA is working on this national incentive with partners across the agricultural and biotech industries to help a variety of new technologies overcome barriers to commercialization so they can begin to grind more corn.” Learn more about the new uses programs at ncga.com/newuses. *********************************************************************************** USDA Hosts Workshops on Nursery Insurance Option The USDA has expanded its Nursery Value Select Crop Insurance program to all counties in all states, and the USDA’s Risk Management Agency is offering informational workshops for interested producers. These sessions will be valuable for producers in the newly expanded areas and especially for the Nursery Field Grown and Container crop insurance program, which ends beginning with the 2026 crop year. Nursery Value Select is a program that enables nursery producers to select the dollar amount of coverage that best fits their risk management needs. It’s expansion is part of RMA’s efforts to provide insurance options for a broader group of producers, including specialty crop producers. “At the RMA, we always want to provide producers with the strongest crop insurance resources and options possible,” says RMA Administrator Marcia Bunger. “That’s why the expansion’s significant because we can now reach every producer in the country.” For more information, go to rma.usda.gov. *********************************************************************************** TSC Raises Over $1 Million for FFA Tractor Supply Company announced the results of its ninth annual Grants for Growing fundraiser to support FFA chapters across the country. From February 14 to March 3, customers and team members generated over $1 million through the purchase of FFA paper emblems at checkouts in stores and online. The funds raised will support middle school and high school FFA chapters that are developing project-based or experiential learning opportunities. “We’re proud to support FFA’s transformative education programs that have such a profound impact on students nationwide,” says Kimberly Gardiner, chief marketing officer for TSC. The Grants for Growing Fund supports projects with grants up to $5,000 in one of three focus areas: Grow Your Classroom, Grow Your FFA Chapter, and Grow Your Ag Awareness. To get funding, FFA advisors can submit applications at FFA.org. Submissions must include a detailed proposal for a project supporting developing future agricultural leaders and the larger community.
| Rural Advocate News | Monday April 1, 2024 |
Top 5 Things to Watch - Post-Easter Markets, HPAI Spread in Dairies, First Crop Progress Report 1. Market settles after disaster dustups: Market traders will be coming back after the Easter long weekend straight into April. We'll continue to track livestock and grain markets as they take in the recent news of the ship accident shutting down Baltimore Harbor and dairy cattle contracting highly pathogenic avian influenza (HPAI). During Easter weekend, there was news the HPAI had spread to dairy cows now in five states; the situation could change the dynamics of the outbreak and indicate cow-to-cow transmission could be possible.. 2. USDA Crop Progress reports begin: April 1 (no fooling) marks the beginning of the weekly Crop Progress reports from USDA, which track planting progress and crop condition through the growing season. Those reports typically come out at 3:00 p.m. on Mondays (unless Monday is a national holiday). We will have both the report numbers and analysis by DTN reporters, meteorologists, and analysts each report afternoon. 3. Take that, Drought Monitor: Thanks to recent spring storms, the "drought is getting pounded," according to DTN Ag Meteorologist John Baranick. He noted that while there are still areas that can use rainfall to make up for multiple seasons of shortfall, the weekly U.S. Drought Monitor is losing some of its yellow and brown coloration (indicating moisture deficits. The Ohio Valley and Southwest Plains could get more rain this week as another round of systems work their way across the U.S. 4. Frost watch: The cold fronts that kick off spring storms could also bring frosts to the Texas and Oklahoma Panhandle areas, where wheat has been responding to unusually warm temperatures. We'll watch for any issues there. As for Easter Sunday, critical fire conditions are expected as red flag warnings have been issued from Colorado and Kansas down to the West Texas region. 5. Economic reports: Back to a full week of reports, no fooling. We'll start Monday at 8:45 a.m. with the S&P manufacturing PMI report. At 9 a.m. is Construction Spending, followed by the 10 a.m. Grain Inspections numbers. At 2 p.m. we'll see Cotton Consumption and Stocks, Fats and Oils report and Grain Crushings. At 3 p.m. will be the season's first USDA Crop Progress report. Tuesday's first reports, at 9 a.m., include Factory Orders and Job Openings (JOLTS) reports. At 2 p.m. is the Hatchery Production Annual report. Wednesday starts early with 7:15 a.m. ADP Employment. At 8:45 a.m. we'll watch for the S&P Services PMI. At 10 a.m. comes EIA's Weekly Petroleum Status including ethanol production and stocks. At 2 p.m. is the Broiler Hatchery numbers. Thursday we'll see Initial Jobless Claims, U.S. Trade Balance and Grain Export sales all at 7:30 a.m. At 10:30 a.m. the Weekly Economic Index is out, followed by the 2 p.m. release of Agricultural Land Values. Friday morning is filled with jobs reports, with 7:30 a.m. release of U.S. Nonfarm Payrolls, Unemployment Rate, and Hourly Wages. At 11 a.m. the Livestock and Meat Trade data report is due, with a Dairy Products report at 2 p.m. Also at 2 is the latest Consumer Credit numbers, and the 2:30 p.m. release of the CFTC's Commitment of Traders report.
| Rural Advocate News | Monday April 1, 2024 |
Monday Watch List Markets Back from a three-day weekend, traders will check in on the latest weather forecasts and notice the PCE inflation index for February, reported on Good Friday. A report on U.S. manufacturing in March will be out at 9 a.m. CDT Monday, followed by USDA's report of weekly export inspections at 10 a.m. NASS's Fats and Oils report will be out at 2 p.m., followed by the first weekly Crop Progress report of the season at 3 p.m. Weather A system is moving in pieces through the middle of the country Monday. That will bring a round of heavy rain and thunderstorms through much of the Plains and Midwest, including areas of severe weather. A widespread severe outbreak is forecast arcing from Texas up through Missouri and the Ohio Valley. All hazards are possible, but the rain will be most welcome.
| Rural Advocate News | Thursday March 28, 2024 |
Baltimore Bridge Collapse Won’t Slow Commodity Exports The Francis Scott Key Bridge at Baltimore collapsed this week. Mike Steenhoek (STEEN-hook), executive director of the Soy Transportation Coalition, says the Port of Baltimore exported over 142,000 metric tons of soybeans in 2020, the most recent data available. “There are no reported soybean exports via bulk vessel,” he says. “The port imported 172,228 metric tons of soybeans via container and 34,000 tons of soybeans in bulk vessels.” In contrast, the Mississippi Gulf Region, the top export region for soybeans, accounted for 35.4 million metric tons of soybeans by bulk. The top five ag products handled at the Port of Baltimore include sugar, soybeans, grain products, coffee, and grocery items. “While it’s not a significant port region for soybeans and grain, it’s a significant resource for the broader economy,” Steenhoek adds. “It underscores the reality that the ports serving as the origins and destinations for global commerce can be vulnerable.” *********************************************************************************** Letter Asks for E15 Emergency Waiver Groups like the Renewable Fuels Association, Growth Energy, the National Corn Growers Association, and others sent a letter on E15 to the Environmental Protection Agency. The groups are asking Administrator Michael Regan to swiftly issue an emergency waiver for E15 sales. “New and ongoing world conflicts continue to pose risks for the U.S. energy supply,” the letter says. “In addition to the Ukraine conflict, the recent conflict in the Middle East presents additional challenges to America’s energy security.” To remedy the disruptions in the global energy markets, stabilize gasoline prices for American consumers, and support domestic energy security, the groups urged the EPA to quickly authorize the summer sale of gasoline blended with up to 15 percent ethanol. ‘The consumer cost savings that result from allowing the year-round sale of E15, even temporarily, are well-established,” the groups add. “Consumers have saved 10 to 30 cents a gallon during recent waivers.” *********************************************************************************** AccuWeather Predicts a Risky Hurricane Season The meteorologists at AccuWeather are warning people and businesses to start preparing now for what could be a busy tropical storm season that may have major impacts on the United States. The 2024 Atlantic Hurricane Season Forecast is calling for 20 to 25 named storms. Eight to 12 of those storms are forecast to strengthen into hurricanes. Four to six storms could directly impact the U.S. “The 2024 Atlantic hurricane season is forecast to feature well above the historical average number of tropical storms, hurricanes, major hurricanes, and direct U.S. impacts,” says AccuWeather Lead Hurricane Forecaster Alex DaSilva. “All indications are pointing toward a very active and potentially explosive Atlantic hurricane season this year.” Warmer ocean temperatures are one of the factors that can provide fuel for tropical systems to rapidly intensify into powerful hurricanes. “Sea-surface temps are well above historical averages across much of the Atlantic basin,” DaSilva explained. *********************************************************************************** USDA Seeks More Grazing Land Conservation The USDA is investing up to $22 million in partnerships that expand access to conservation technical assistance for livestock producers and increase the use of conservation practices on grazing land. The Natural Resources Conservation Service is accepting proposals through its Grazing Lands Conservation Initiative until May 26, 2024. “Privately owned grazing lands cover nearly 30 percent of the national landscape, which means we have a tremendous opportunity to conserve natural resources through voluntary, private lands conservation,” says NRCS Chief Terry Cosby. “NRCS enlists a wide variety of conservation practices to help livestock producers.” He also says the partnerships will help expand the footprint of conservation on grazing lands. Project proposals for GLCI Cooperative Agreements will identify and address barriers to accessing grazing assistance for producers. Projects must address one or more of several priorities, including local natural resource concerns, climate-smart ag and forestry practices, and others. For information, go to grants.gov. *********************************************************************************** Feed Industry Supports EMIT LESS Act The American Feed Industry Association applauded several senators for introducing the “Enteric Methane Innovation Tools for Lower Emissions and Sustainable Stock (EMIT LESS) Act.” By expanding USDA’s research and incentivizing the adoption of emissions-reducing practices on farms, the bill aims to mitigate the significant environmental impact of enteric methane emissions from American dairy and beef cattle operations. “We thank the senators for introducing a bill that strengthens our country’s research and conservation programs while recognizing the unique role that animal nutrition and feed ingredients play in reducing on-farm enteric methane emissions,” says Constance Cullman, president and CEO of the American Feed Industry Association. “The EMIT LESS Act shows that right alongside animal food innovators, our country is willing to invest in a more sustainable future.” AFIA also says the bill’s key provisions include integrating emissions-reduction practices into USDA’s conservation programs and providing financial incentives to farmers that voluntarily adopt them. *********************************************************************************** American Agri-Women Expanding its D.C. Fly-In American Agri-Women is excited to announce the expansion of its annual Washington D.C. fly-in event. The group is opening up the event to all women involved in the agricultural and natural resource industries. The 2024 Fly-In will be a historical gathering, uniting women from across the country to make their voices heard on behalf of the agriculture industry in the nation’s capital. The fly-in is scheduled from June 2-4, 2024, in Washington D.C. The event promises a unique opportunity for women across the agricultural and natural resources sectors to come together, share insights, and advocate for critical issues affecting their industries. Among the many key highlights of the event, several presentations will show attendees how to make an impact at the local, state, and federal levels of government, as well as discussions on regulations and how they impact producers. It’s a chance to network with elected officials and other stakeholders.
| Rural Advocate News | Thursday March 28, 2024 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, an update of first-quarter U.S. GDP and an update of the U.S. Drought Monitor. The Energy Department's weekly natural gas storage report is at 9:30 a.m. USDA's Prospective Plantings survey and report of March 1 Grain Stocks will be out at 11 a.m., followed by USDA's quarterly Hogs and Pigs report at 2 p.m. Weather A system that is moving through the Pacific Northwest will be moving into the Northern Plains and Canadian Prairies on Thursday, producing areas of scattered showers, mostly as snow. Quieter conditions are expected elsewhere as temperatures start to rise ahead of the inbound system. Snow cover will limit some of the warming in the Upper Midwest and surrounding areas.
| Rural Advocate News | Wednesday March 27, 2024 |
Farm Lending Slows as Interest Rates Climb The USDA, the Food and Drug Administration, and the Centers for Disease Control and Prevention announced the detection of Highly Pathogenic Avian Influenza in cattle. The agencies say the disease seems to be affecting primarily older cows in Texas, Kansas, and New Mexico. This is the first time that HPAI has been identified as affecting dairy cattle and only the second time the virus has been detected in a ruminant animal. The commercial milk supply remains safe due to the federal animal health requirements and pasteurization. Milk from the affected herds is not allowed to enter the milk supply. The Animal and Plant Health Inspection Service says migratory birds are the likely source of the infection. “At this stage, there’s no concern that this circumstance poses a risk to consumer health,” APHIS says in a news release. Federal and state agencies are moving quickly to conduct additional testing for specific HPAI strains. *********************************************************************************** Properly Prepared Beef is Safe to Eat After HPAI was found in dairy cattle, the Meat Institute says that properly prepared beef is safe to eat and not a safety risk to humans. “The Centers for Disease Control and Prevention and USDA food safety experts say properly prepared beef is safe to eat,” says Meat Institute President and CEO Julie Anna Potts. “HPAI cannot be transmitted to humans by eating meat or poultry products.” She also says the Meat Institute and its member companies will continue to be vigilant to aid in the efforts to stop the spread of the disease among animals in food production. “We will support the nation’s producers working to protect their herds,” Potts adds. The meat and poultry industries are among the most intensely regulated in the nation. Inspectors from the Food Safety and Inspection Service are present every day in meat packing plants and are trained to detect disease before and after slaughter. *********************************************************************************** EPA Accepts Atrazine Recommendations The Environmental Protection Agency agreed with recommendations from its Scientific Advisory Panel on atrazine. The recommendations remove several poor-quality studies that played a role in the agency’s recommendation for an ultra-low aquatic level of concern for atrazine. The SAP was held in 2023 at the request of agriculture groups active in the Triazine Network. The panel considered EPA’s white paper and stakeholder comments to exclude or rescore several questionable studies used to set the aquatic concentration equivalent level of concern. The panel’s scientists appreciated the farmers and agriculture representatives who testified on the real-world benefits and necessities of atrazine as well as the real-world consequences of EPA’s proposed decisions. One of the Triazine Networks’ co-chairs says hearing directly from the people using the product was a key component of the SAP. The Triazine Network is a coalition of agriculture organizations and producers advocating for science-based decisions on Triazine herbicides like atrazine. *********************************************************************************** USDA Authorizes Emergency CRP Grazing The USDA has authorized the release of emergency haying and grazing of Conservation Reserve Program acres nationwide to livestock producers affected by the wildfires in Nebraska, Oklahoma, and Texas. “Many ranchers in those states impacted by the recent wildfires are in need of grazing acres and hay resources to sustain their herds while they work during the months ahead to restore their operations,” says Kelly Adkins, Texas Farm Service Agency Director. “If you have CRP acres and want to help wildfire-impacted ranchers, please contact your local FSA office. They’ll determine available emergency and non-emergency use options.” Although the Primary Nesting Season has already started in Texas, CRP participants can continue to donate emergency grazing authority to livestock producers in need during this period in counties eligible for the Livestock Forage Program due to drought. FSA also offers non-emergency use provisions for CRP acres as an option during the PNS in Texas. *********************************************************************************** BASF Launches a New SCN Awareness Website Soybean Cyst Nematode is present in most areas where soybeans are grown. Because nematodes feed on the roots of each plant, the damage is often difficult to detect with no above-ground symptoms. To help farmers do their jobs more efficiently, BASF launched SCNFields.com, a website that will provide farmers with SCN sampling results from more than 4,000 collected samples across the U.S. “SCN is the leading cause of soybean yield loss in the U.S., costing growers over 100 million bushels of yield and an estimated $1.5 billion annually,” says Troy Bauer, BASF Senior Technical Field Representative. “Farmers need to test their fields to ensure SCN isn’t becoming a problem without them realizing it.” With SCNFields.com, a farmer can see samples with high counts locally and know they need to take steps now to manage the threat of SCN. Additionally, SCN populations can change in season. For more information, go to SCNFields.com. *********************************************************************************** Iowa Farm Goes for Almost $4 Million A 230-acre farm in Grundy County, Iowa, owned continually by the same family since plows first turned ground in the prairies in the 1870s, sold at a recent auction for almost four million dollars. Successful Farming says the Iowa century farm is historically significant in the state and has some of Iowa’s highest quality cropland. More than 91 acres, or 40 percent of the land, have a perfect 100 Corn Suitability Rating (CSR2). The overall weighted average for the land is a still-high 95.2. According to Iowa State University, the average rating for the state is 68.4. Grundy County has the second-highest average of Iowa’s 99 counties at 86.9. Before the auction, tenant Paul Koch spoke to the crowd. The third-generation farmer said the family moved onto the farm in 1929 and has farmed the land for about 94 years. “This is some of the state’s best ground,” he said.
| Rural Advocate News | Wednesday March 27, 2024 |
Wednesday Watch List Markets The Energy Department's weekly inventory report is due out at 9:30 a.m. CDT Wednesday, the only significant report of the day. Traders will keep watch over South American weather forecasts and trading may be quiet Wednesday, ahead of three USDA reports on Thursday. Weather A big storm system is leaving the U.S. as it heads toward Hudson Bay. The cold front to the storm will bring showers to the East Coast, however. A few showers will go through the Southern Plains Wednesday as well. Cold air has built into the Plains which may be harming wheat in the southwest. The next system is moving into the Pacific Northwest as the pattern remains active.
| Rural Advocate News | Tuesday March 26, 2024 |
Farmers Planting Less Corn, More Soybeans in 2024 American farmers might plant less corn than last year, but it will still likely be larger than what USDA previously anticipated. That’s according to data from the March 2024 Farm Futures grower survey. Total corn and soybean acreage will likely vary minimally from last year. Growers expect to plant 92.4 million acres of corn this year, down 2.3 million acres or 2.4 percent from last year. Soybean acreage is forecast to be 2.4 million acres or 2.9 percent higher than last year’s 86 million acres. This is almost a one-for-one tradeoff between corn and soybean acres from last year. If realized, that would bring the total corn and soybean acreage planted this year to 178.6 million acres or the third-largest combined corn-soybean acreage on record. Last year, farmers planted 178.2 million acres of corn and soybeans. Growers still anticipate USDA finding more winter wheat acres compared to last year. *********************************************************************************** California Pork Prices Higher After Prop 12 Implementation Prop 12 is already raising the price of pork in California. In effect for just over six months, pork sales have dropped across the state. That’s from data compiled by the USDA’s Office of the Chief Economist. The OCE found prices for pork products affected by Prop 12, including loins, ribs, and bellies, have averaged 20 percent higher in California since before July 1, 2023, when the initiative was partially implemented. Loin prices average 41 percent higher than before Prop 12 implementation. Pork not covered by the initiative hasn’t significantly increased. The data also shows that California’s share of fresh pork consumption has “significantly declined.” The economists found the price premium end-users paid for Prop 12-compliant pork compared with non-compliant products at the wholesale level was 22 percent higher on average, with compliant loins and bellies 30 percent higher. Prop 12-compliant pork must meet specific space standards to be legal. *********************************************************************************** Legislation Sets Fairer Prices for Livestock Assistance Senators Mike Rounds (R-SD) and Amy Klobuchar (D-MN) introduced legislation to offer producers fairer market prices for livestock disaster assistance programs. The Livestock Indemnity Program Improvement Act would require the Farm Service Agency to make quarterly updates to the Livestock Indemnity Program payment rates that reflect livestock market prices. The LIP provides payments to eligible livestock owners and contract growers for abnormal livestock deaths caused by an eligible loss of condition, such as severe weather, disease, or animal attack. The FSA is currently required to update the payment rates annually. The bipartisan bill would make these updates more frequent to reflect a quickly-changing market. “Ranchers often make large financial investments in their livestock and sometimes face heavy losses due to natural disasters and other circumstances out of their control,” Klobuchar says. “This will help ensure ranchers have a safety net that more accurately reflects the market value of any lost livestock.” *********************************************************************************** New Grant Program for Beef Producers The Southwestern Cattle Raisers Association’s Leadership Development Foundation announced a new Working Grant Program. The announcement came during the recently completed Cattle Raisers Convention and Expo. The new TSCRA Leadership Development Foundation’s grant program will help support those starting or growing a business in ranching, beef production, or a related area supporting the beef value chain. The program will provide financial assistance and access to mentorship, educational resources, or related areas supporting the beef value chain. “Whether it’s helping a young producer purchase their first parcel of land, enabling a veterinarian to open a large animal clinic in a rural community, or giving a generational producer the opportunity to grow their operation, these grants have the power to transform lives and revitalize our rural economies,” says TSCRA President Carl Ray Polk, Jr. The application period for individuals in Texas and Oklahoma will open on May 1. For information, go to tscra.org. *********************************************************************************** U.S. Cattle on Feed Up One Percent The USDA says the total number of cattle and calves on feed for the slaughter market in the U.S. for feedlots with a capacity of 1,000 or more head totaled 11.8 million head on March 1. The inventory was one percent above March 1, 2023. Placements in feedlots during February totaled 1.89 million head, ten percent above 2023. Placements were the highest for February since the series began in 1996. Net placements were 1.83 million head. During February, placements of cattle and calves weighing less than 600 pounds totaled 360,000 head, and between 600-699 pounds, placements reached 330,000 head, 700-799 pounds were 515,000 head, 800-899 pounds were 485,000 head, 900-999 pounds totaled 150,000 head, and 1,000 pounds or greater totaled 50,000 head. February fed cattle marketings reached 1.79 million head, which was three percent above February 2023. Other disappearances totaled 56,000 head during February, down three percent from February 2023. *********************************************************************************** FAA Clears “Drone Swarms” for Agriculture The Federal Aviation Administration issued an exemption for “drone-swarm” agriculture, a method of seeding and spraying crops at a fraction of the traditional cost. Hylio (HEE-lee-oh), a Texas-based drone manufacturer, successfully applied for an FFA exemption to allow fleets of drones weighing 55 pounds or more to fly together. It’s the first exception of its kind for machines that carry what the company calls a “meaningful payload” and makes the process competitive with traditional tractors and seeding rigs. “On average, you’re spending a quarter upfront on the capital cost to buy the machinery, and the operating cost is about a quarter or maybe a third of what you’d spend for the more traditional stuff,” says Arthur Erickson, Hylio CEO. Under previous rules, a single drone required a pilot and another person acting as a spotter. Because of weight limits in flight, it took a long time to cover large fields.
| Rural Advocate News | Tuesday March 26, 2024 |
Tuesday watch List Markets Durable Goods Orders will be released at 7:30 a.m. CDT, at 8 a.m. we'll see the Case-Shiller Home Price Index and at 9 a.m. the latest Consumer Confidence numbers are out. The USDA report preview is also available. Traders continue to keep an eye on South American weather and recent events in Ukraine. Weather A strong storm system in the Midwest will send the main low-pressure center northeast into Ontario on Tuesday while the cold front slowly pushes eastward into the Appalachians. Widespread showers continue from the Midwest to the Gulf Coast and some stronger thunderstorms will still be possible in the eastern Midwest this afternoon. At the same time, snow continues to be heavy on the backside of the storm across Minnesota. Cold air has built in behind the storm across the Plains
| Rural Advocate News | Monday March 25, 2024 |
Farm Bank Lending Increased in 2023 Agricultural loan demand increased in 2023, and agricultural lending by U.S. farm banks grew 6.7 percent to $110 billion. The American Bankers Association’s annual Farm Bank Performance Report credits elevated production costs, commodity price volatility, and a return to pre-COVID levels of direct government payments. The ABA says farm banks continued to enjoy solid performance in 2023, with robust loan growth and historically low delinquency rates. “Moving forward, the agricultural sector will continue to face challenges due to monetary policy actions targeting persistent inflation in the U.S. and reduced federal support,” the ABA says in a news release. Despite the challenges, farm banks maintained strong asset quality and consistent growth in high-quality capital and remain well-positioned to continue serving the needs of their customers and communities. The report also showed that farm banks are a major source of credit for small farmers. Last year, 98.1 percent of farm banks were profitable. *********************************************************************************** Senate Votes to Block Paraguayan Beef Imports The National Cattlemen’s Beef Association thanked the Senate for passing a resolution to block beef imports from Paraguay. The resolution comes after the USDA lifted the longstanding ban on Paraguayan beef imports despite the country’s concerning animal health track record. “Our animal health standards are second to none, and we must be vigilant in protecting the U.S. cattle herd from harmful foreign animal diseases that could have a devastating impact on U.S. agriculture,” says Mark Eisele, a Wyoming rancher and NCBA President. “Paraguay’s history of foot-and-mouth disease is a great concern, and anyone who wants to trade with the U.S. must meet our high safety standards.” NCBA specifically called out the outdated animal health data used to make USDA’s decision. “The U.S. government relied on nine-year-old data and site visits from 2008 to 2014 to justify access for Paraguayan beef imports,” says Kent Bacus, NCBA Executive Director of Government Affairs. *********************************************************************************** Bill Would Ease Farmland Ownership Transitions Senators Tammy Baldwin (D-WI) and Mike Braun (R-IN) introduced new legislation designed to break down barriers to farming and agricultural land ownership. The goal would be to help more Americans pursue farming careers. The bipartisan Farm Transition Act of 2024 would, for the first time, create a Commission on Farm Transitions to study the issues impacting the transition of agricultural operations to the next generation of farmers and ranchers and make recommendations to address those barriers. “Farmland is one of our most valuable assets, contributing to local economies, safeguarding our national food security, and putting us on the map with world-class products,” Baldwin says. “Many people interested in a career in agriculture are getting locked out and having to compete with Wall Street investment firms buying up farmland.” As of 2021, American Farmland Trust says seniors 65 and older owned more than 40 percent of the agricultural land in the U.S. *********************************************************************************** Risking Soybean Processing Industry’s “Overbuild” Demand for soybean oil as a feedstock in the production of renewable diesel is rising as the U.S. aims to increase the adoption of cleaner-burning fuels. Renewable diesel is the preferred replacement for traditional diesel, and U.S. production is predicted to increase sharply in the years ahead. To meet the growing demand for soybean oil, U.S. processors are ramping up their production capacity, expected to increase by 23 percent over the next three years. While processors have benefited from record-high profit margins in recent years, margins will likely moderate. A new report from CoBank says multiple years of record margins have left processors prepared to weather the inevitable margin downturn. However, overbuilding U.S. crush capacity, combined with sustained levels of low processing margins, could threaten the viability of new, high-cost plants. The CoBank report says new crush plants built at higher costs and interest rates will have much higher breakeven costs. *********************************************************************************** Washington State Farmers Concerned About Grizzlies The National Park Service and U.S. Fish and Wildlife Service released an environmental impact statement on options to restore grizzlies in the North Cascades area of Washington state. The two agencies say the last grizzly bear sighting in the North Cascade Mountains was in 1996. The bear idea has Washington farmers very concerned. At a House Ag Subcommittee hearing, Rep Dan Newhouse of Washington asked Ag Secretary Tom Vilsack if USDA had been consulted on the proposal. Vilsack thought USDA had but preferred to leave the final decision to the Interior Department. Newhouse says farmers are worried that bears will move out of the zone they’re released in. “The Interior Department that oversees the two agencies is shutting out the voices of my constituents who had expressed serious concerns about the proposals,” Newhouse said. The NCBA and Public Lands Council say they “condemn” the plan to release the bears. *********************************************************************************** The Newest Use for U.S. Soy Involves Chainsaws The newest use for American soy is a biobased oil for chainsaws. Through the Soy Checkoff Research and Development Investment, U.S. soybean farmers are partnering with DEWALT and Dynamic Green Products to announce a groundbreaking sustainable solution. DEWALT’s soy-based Bar & Chain Biodegradable Oil is now available at Home Depot Stores nationwide and on various online platforms. “It’s exciting to see the checkoff investment in this bar and chain oil pay dividends as It becomes widely available to more farmers and the professionals who care for parks, forests, and more,” says Steve Reinhard, USB Chair and Ohio soybean farmer. “This oil is yet another example of U.S. Soy delivering performance and sustainability benefits.” Fifth-generation farmer Bret Davis of Ohio was eager to be an early adopter of the product. “It’s pretty simple: if you grow it, then you should use it,” Davis says. “It works great in my battery-powered chainsaw.”
| Rural Advocate News | Monday March 25, 2024 |
Top 5 Things to Watch March - Grain Stocks and a Good Friday Break 1. March USDA reports: The March USDA Grain Stocks and Prospective Planting reports will be released at 11 a.m. on March 28. We'll post those numbers shortly after 11, with updates and analysis throughout the morning. 2. Spring storm cometh: Cold air from Canada bumping into warmer air to the south is leading to a major storm system this weekend that should last well into next week. Much of the country could see high snowfall totals, blizzard conditions in some areas, some freezing rain, and strong winds. 3. EU responds to Russian grain dumps: European media have been reporting on European Union efforts to slow grain exports from Russia and Belarus in response to the Russia-Ukraine war. EU leaders are attempting to balance excess exports onto world markets from Putin's grain dump while still allowing food supplies into African nations that need it. EU countries are also trying to respond to their own farmers crying foul as Ukraine exports -- needed by that country to shore up its war effort -- have depressed produce and other food prices in bordering countries. 4. Good Friday break: The DTN newsroom will be closed for the Good Friday market holiday, but we'll have breaking news updates throughout the day and weekend. 5. Economic reports to come: Monday at 8 a.m. the Food Price Outlook is released followed by New Home Sales at 9 a.m. and Grain Inspections at 10 a.m. At 2 p.m. we'll watch for the Oil Crop Yearbook and Poultry Slaughter numbers. Tuesday starts with 7:30 a.m. release of Durable Goods Orders, at 8 a.m. we'll see the Case-Shiller Home Price Index and at 9 a.m. the latest Consumer Confidence numbers are out. Wednesday the latest EIA numbers, including ethanol production and inventory, are out at 10 a.m., followed by 2 p.m. Broiler Hatchery report. Thursday we'll watch for the 7:30 a.m. release of Initial Jobless Claims, GDP Revised Q1 reports and Grain Export Sales. At 9 a.m., Pending Home Sales and Consumer Sentiment is out. Then at 11 a.m. is the USDA Grain Stocks and Prospective Planting reports, followed by a 2 pm. release of the Hogs and Pigs report. Friday grain markets are closed for Good Friday; however, some USDA reports are still released that day. At 7:30 a.m. the U.S. Trade Balance, Retail and Wholesale Inventories, Personal Income and the PCE Index reports are released.
| Rural Advocate News | Monday March 25, 2024 |
Monday Watch List Markets A report on U.S. new home sales for February will be out at 9 a.m. CDT Monday, followed by USDA's weekly export inspections at 10 a.m. USDA's monthly cold storage report is set for 2 p.m. Thursday will be the busy day this week with Grain Stocks, Prospective Plantings and Hogs and Pigs reports set for release before the Good Friday holiday. Weather A storm system that moved into the Plains and Upper Midwest on Sunday continues in these same areas for Monday, though some areas that were rain switched to snow and some areas that saw snow have switched to rain. Strong winds are leading to blizzard conditions in portions of the Plains. The main cold front will move into the Mississippi Valley Monday with scattered showers and thunderstorms, some of which are likely to become severe across the Delta. Cold air funneling into the Plains could be damaging for wheat.
| Rural Advocate News | Friday March 22, 2024 |
Friday Watch List Markets USDA's monthly cattle on feed report for March 1 is due out at 2 p.m. CDT Friday. Dow Jones' survey is expecting USDA will find 11.75 million head on feed, almost 1% more than a year ago at this time. Traders continue to keep an eye on South American weather. Weather A pair of systems, one north and one south, will move through the eastern portions of the country Friday and Saturday with scattered showers, including some moderate snow across the north. Western states will see showers along the coast as a major system is set to move into the region this weekend.
| Rural Advocate News | Friday March 22, 2024 |
Colombia Restores Market Access for U.S. Poultry After months of hard work by the Office of the U.S. Trade Representative and the USDA, Columbia reopened its market to U.S. poultry and egg producers. “Ensuring our producers can compete on a level playing field across the globe is a top priority for the U.S. Trade Representative’s Office,” says USTR Chief Agricultural Negotiator Doug McKalip. “We are pleased that American poultry and egg producers have renewed access to higher income for them, their families, and our rural communities because of efforts to remove this market access barrier.” The Colombian government had stopped issuing import permits for U.S. poultry on August 7, 2023. The government cited concerns over the spread of Highly Pathogenic Avian Influenza. The restored market access is another major win for American agriculture. “We’re pleased that Colombia is living up to the U.S.-Colombia Trade Promotion Agreement,” says Alexis Taylor, USDA Undersecretary for Trade and Foreign Agricultural Affairs. *********************************************************************************** Ag Leaders Want Certainty on Sustainable Aviation Fuel A multi-state coalition of biofuel and farm advocates asked the Treasury Department to swiftly resolve any questions standing in the way of scaling up U.S. production of Sustainable Aviation Fuel. More specifically, they urged the administration to quickly adopt the U.S. Department of Energy’s GREET model for calculating SAF tax credits under the Inflation Reduction Act. That would complete a process that was supposed to conclude by March 1. “We are disappointed the administration didn’t fulfill its commitment to release a modified GREET model by March 1, but we appreciate the importance of getting the modeling right,” wrote 26 organizations. “At the same time, we caution against contradictory changes to GREET that would stack unwarranted penalties on agricultural feedstocks, cut rural America out of a promising green energy market, and undermine any path to achieving SAF goals.” Groups in the coalition include Clean Fuels Alliance America, Growth Energy, and many others. *********************************************************************************** Ethanol Production and Inventories Rise The Energy Information Administration says ethanol output in the U.S. rose week to week, and inventories increased during the seven days ending on March 15. EIS data shows that production rose to an average of 1.04 million barrels a day, up from 1.024 million a week earlier. In the Midwest, which produces the most ethanol in the U.S., total output rose to 995,000 barrels from 973,000 during the previous week. That was the entirety of the weekly gains as the EIS said the remaining regions were unchanged. Gulf Coast production was steady at 21,000 barrels a day, and West Coast output stayed at 8,000 barrels daily. Rocky Mountain and East Coast production were both unchanged at 11,000 barrels a day. Turning to the supply on hand, the EIS said ethanol inventories at the end of the week totaled just over 26 million barrels, up from 25.7 million a week earlier. *********************************************************************************** Food and Ag Industries Have $9.63 Trillion Impact Over thirty agriculture groups released the eighth annual “Feeding the Economy” report. The study helps estimate the direct and indirect economic contributions of the food and agriculture industries on jobs, wages, economic output, and business taxes. The 2024 report’s findings show the total economic impact for the food and agriculturally-related industries grew almost 12 percent over the past year and reached $9.63 trillion. That’s 20 percent of the total U.S. output. Total jobs in the industry reached more than 48 million. Total wages were $2.7 trillion, up 34 percent since the 2020 report. Total taxes were $1.25 trillion, up 37 percent since the 2020 report. Total exports of $181.6 billion were down three percent since 2020. From the 2020 report till now, food and agriculture manufacturing jobs grew at a faster rate than any other job category in America. Agricultural production now accounts for 20 percent of all U.S. manufacturing jobs. *********************************************************************************** More Reaction to the New Tailpipe Emissions Standards Growth Energy joined a number of U.S. agriculture groups expressing disappointment in the Environmental Protection Agency’s final rule on vehicle emissions standards. Growth Energy CEO Emily Skor says since the rule was proposed in April 2023, the administration has heard loud and clear that it would be a mistake to ignore biofuels. “They are a proven, abundant, and American-made solution to reduce emissions,” Skor says. “The final rule offers automakers some limited flexibility, but it fails to include any meaningful changes to ensure we’re not leaving biofuels on the sidelines.” She also points out that experts worldwide agree that EVs alone won’t get the U.S. to a net-zero future. “We need carbon savings within liquid fuels, and that requires a bigger role for American bioethanol,” she says. “It’s baffling to see EPA accept a false choice between only two paths forward – fossil fuel only vehicles or mass adoption of EVS.” *********************************************************************************** Consumers Think Food Prices Still Too High While inflation has eased somewhat, food prices are still high. A study conducted by the University of Illinois and Purdue University asked consumers what type of companies they believe are behind high food prices. “Consumers are frustrated with many downstream actors, like food manufacturers, grocery stores, and restaurants, feeling these groups are overcharging them,” says Brenna Ellison, a Purdue economist and co-author of the study. Two-thirds of consumers consider food manufacturers too big, and over half believe grocery stores have too much control or market share. The survey showed consumers felt farmers were the least to blame. More than 70 percent of consumers believe that restaurants, grocery stores, and food manufacturers are overcharging them. Despite political differences, a significant number of consumers across party lines share concerns about the size of food manufacturers and grocery stores, indicating a bipartisan worry regarding market power despite often significant political differences in the respondents.
| Rural Advocate News | Thursday March 21, 2024 |
Ag Groups React to New EPA Tailpipe Standards The National Corn Growers Association expressed grave concern and disappointment with the Environmental Protection Agency’s final 2027-2032 tailpipe emissions standards. NCGA says the plan still relies almost exclusively on using electric vehicles, a decision that will have long-lasting impacts on the rural economy because it ignores the benefits of ethanol. Economists at the University of Nebraska say the resulting large drop in corn demand will lead to a permanent 50 percent decrease in the price of corn. That could cost the top five corn-producing states well over $100 billion in farmland value. The Renewable Fuels Association says today’s ruling is not the best way to accomplish the administration’s climate goals. “Today’s final rule forces automakers to produce more electric battery vehicles based on the premise that they’re ‘zero-emission’ vehicles,” says RFA President and CEO Geoff Cooper. “The regulation would strongly discourage manufacturers from pursuing other technologies like flex fuel vehicles.” *********************************************************************************** House Ag Committee Dealing with Chinese Influence on U.S. Ag The House Agriculture Committee held a hearing Wednesday regarding concerns over foreign influence on American agriculture. Ranking Member David Scott (D-GA) said the more specific purpose of the hearing was to discuss the influence that China has on U.S. agriculture. “I want us to keep in mind that China is an important trading partner to the U.S.,” Scott said in his opening statement. “We need a thorough and policy-heavy conversation so we can help American farmers and our agricultural system navigate this issue.” He also pointed out that China is America’s largest trading partner, accounting for $33.7 billion in U.S. agricultural exports last fiscal year. American farmers produce way more than the country can use domestically, so trade is vital. “My colleagues will often note that we are in an agricultural trade deficit,” he added. “I’m here to tell you that alienating our trade partners will only deepen the deficit.” *********************************************************************************** EV Push Will Drive U.S. Deficit $200 Billion Higher Senate Budget Committee Ranking Member Chuck Grassley is increasing his opposition to the Environmental Protection Agency’s tailpipe emissions proposal. He cites a new cost estimate by the Congressional Budget Office. “The CBO released a ten-year budget and economic outlook projecting a $224 billion increase in the cumulative deficit caused by higher electric vehicle tax credit claims and reduced gas tax revenues,” he says. “CBO noted the EV Rule is the largest factor to contributing to these revisions.” In a letter to EPA Administrator Michael Regan, Grassley said, “The American taxpayers have not voted for and can’t afford the EPA’s tailpipe standards.” Grassley also noted the challenges the standards pose for auto dealers and wants the agency to clarify its legal authority for promoting the EV Rule. He’d also like the EPA to outline its plans to compensate for the hundreds of billions of dollars in lost tax revenue and extra spending. *********************************************************************************** El Niño’s impact on U.S. Farmers The 2024 growing season is expected to bring a unique combination of El Niño this spring through early summer before switching to La Niña in late summer through early fall. Farmers Business Network says the opposing climate patterns have the potential to trigger significant weather events that could have problematic impacts on crop production. 2023 ended with a strong El Niño, which is weakening now and will end around April. However, the long-term impacts will be felt throughout the growing season. The U.S weather patterns will likely shift back to normal between April and July, followed by a probable La Niña through September. The report also says 2024 planting dates will likely be slightly earlier for wheat and rice while remaining typical for corn and soybeans. Corn, wheat, and soybean yields are expected to increase this year because of El Niño, while rice yields will slightly decline from last year. *********************************************************************************** Mexico to Boost Corn Imports Mexican corn imports are expected to rise during the 2024-2025 marketing year amid increased demand. USDA’s Foreign Agricultural Service says corn imports are forecast to increase five percent year-over-year to 22 million tons to meet the Mexican government’s forecast of an increasing demand for starch and animal food production. Mexico is the world’s second-largest grain importer behind only China. Successful Farming says relatively lower forecast corn prices compared to the previous year and growing demand from livestock producers and processors will drive up corn imports. The U.S. accounted for more than 85 percent of Mexico’s corn imports. Mexican corn production in the 2024-2025 marketing year starting on October 1 is forecast to jump seven percent to 25 million metric tons due to increased planted area and less abandonment. “Optimism about returning to average rainfall and moisture levels after exceptional drought is expected to incentivize farmers to increase their planted area,” USDA says. *********************************************************************************** USGC Releases the Corn Export Cargo Quality Report The U.S. Grains Council released its 2023-2024 Corn Export Cargo Quality Report which contained some good news. The average aggregate quality of U.S. corn samples tested for the report was better than or equal to U.S. No. 2 on all grade factors and represented an improvement on the five-year average of previous crops on several fronts. “The Council is committed to furthering global food security and mutual economic benefit through trade,” says USGC Chair Brent Boydston. “This report will assist buyers in making well-informed decisions by providing reliable and timely information about U.S. corn destined for export.” The average test weight came in at 58.1 pounds per bushel, which was higher than the previous marketing year and the five-year average. Chemical analysis showed an 8.9 percent protein concentration, up from 8.7 percent last year and the five-year average. All samples tested below the Food and Drug Administration’s action level for aflatoxins.
| Rural Advocate News | Thursday March 21, 2024 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. Reports on U.S. existing home sales in February and U.S. leading indicators are due out at 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Weather A clipper-like system is moving into the Northern Plains and will produce a band of snow into the Upper Midwest by Thursday night. At the same time, an upper-level low-pressure system is moving through South-Central states with scattered showers and some thunderstorms of its own, some of which may be severe in eastern Texas.
| Rural Advocate News | Wednesday March 20, 2024 |
Ag Import Values Outpaced Export Values in 2023 USDA’s Economic Research Service reports U.S. agricultural imports exceeded exports by $16.6 billion in fiscal year 2023. For nearly 60 years, U.S. agricultural trade maintained a surplus, but in fiscal year 2019, the balance shifted to a deficit, where it has stayed three out of the last five fiscal years. Imports have largely followed a stable upward trend, while exports have had relatively wide swings. From 2013 to 2023, import values increased at a compound annual growth rate of 5.8 percent, and exports grew at a rate of 2.1 percent. Although the U.S. agricultural trade balance is closely watched, it reflects changing consumer tastes, a robust economy, and a strong dollar, and is not an indicator of export competitiveness or import dependence. USDA says the U.S. consumer’s growing appetite for high-valued imported goods—such as fruits and vegetables, alcoholic beverages, and processed grain products—has contributed to the expanding trade deficit. *********************************************************************************** MU Releases New Baseline Food and Agricultural Outlook Farm commodity prices have tumbled from the peak levels they rose to during spring 2022 — and new projections suggest that downward pressure on prices could continue throughout 2024 and beyond. The Food and Agricultural Policy Research Institute at the University of Missouri recently released its annual agricultural market baseline outlook. The outlook provides projections for agricultural and biofuel markets and serves as a point of reference for evaluating alternative scenarios for food and agricultural policy. Another key finding from the report is that net farm income is projected to fall to its lowest level since 2020. For consumers, food price inflation slowed in 2023, and FAPRI's report suggests that this trend could continue in 2024. The consumer price index for food is anticipated to increase 2.1 percent in 2024, with the lion's share of the increase coming from food away from home. The annual report summarizes ten-year "baseline" projections for several economic indicators, and can be found on the FAPRI website. *********************************************************************************** USDA Announces Grants for Urban Agriculture The Department of Agriculture is accepting grant applications to support urban agriculture and innovative production. Chief of USDA's Natural Resources Conservation Service, Terry Cosby, says, "These projects will add to the important work communities are doing to build food security in underserved areas." Since 2020, the grants have invested more than $46.8 million in 186 projects across the country, and they're part of USDA's broad support for urban and innovative producers. UAIP grants are available to a wide range of individuals and entities, including local and Tribal governments, nonprofits, and schools. The program provides grants for two types of projects: Planning Projects and Implementation Projects. The program was established through the 2018 Farm Bill. It is led by NRCS and works in partnership with numerous USDA agencies that support urban agriculture and innovative production. Applications for USDA’s Urban Agriculture and Innovative Production grants are due April 9, 2024, via grants.gov. *********************************************************************************** Noble Research Institute Partners with Ranch Management Consultants Noble Research Institute Ranch Management Consultants Tuesday announced a collaboration with an exclusive licensing agreement granting Noble use of RMC's Ranching for Profit program content. Noble will design and develop a suite of educational, skill-building products incorporating both Noble-developed and Ranching for Profit content. The first Noble product benefiting from this relationship, Noble Business Essentials, is scheduled to be launched in June 2024. Noble's purpose is to save U.S. grazing lands by promoting land stewardship through regenerative management, building soil health and keeping ranchers on the land. RMC has been recognized in agriculture business training for more than four decades. Noble's Business Essentials will provide easy-to-understand financial strategies for farmers and ranchers. The program is the third of Noble's Essentials series, including Noble Land Essentials and Noble Grazing Essentials. RMC's Ranching for Profit schools, a 7-day learning program, are designed to help ranchers and farmers find the breakthroughs needed to improve the health of their land, the profitability of their business and the quality of their life. *********************************************************************************** Researchers: Blue-Green Algae Can Protect Honey Bees Scientists at USDA’s Agricultural Research developed an edible antiviral treatment that can be used to protect honey bees against Deformed Wing Virus and other viruses. Honeybees are important agricultural pollinators. However, viruses, including DWV, are linked to the deaths of millions of colonies worldwide. These colony losses devastate beekeeping industries and pose a major risk to agriculture and the global food supply. While there are medicines for other bee diseases and parasites, there is currently no treatment available to help beekeepers reduce viruses in their colonies. Researchers found that engineered algae diets suppressed DWV infection and improved survival in honeybees. When mixed into bee food, the engineered algae boost the bee’s immune system to fight off the targeted virus. The researchers filed a patent application for the technology and plan to use variations of it to target additional bee viruses and other pathogens in future studies. *********************************************************************************** Cargill Awards More Than $3 Million Grant to National FFA Organization Cargill awarded a three-year grant of $3.15 million to the National FFA Organization in support of its commitment to shape future agriculture leaders. The grant supports various National FFA Organization programs and events during the three-year period, including the organization's sustainability platform, the equity, diversity and inclusion pathway, and the Living to Serve program. During the National FFA Convention & Expo, the grant supports a booth, the rodeo and travel grants for career development event participants. In addition, the funding supports the American FFA Degree and the American Star Awards. Cargill's grant also supports programs that encourage the exploration of career pathways in agriculture. National FFA and Cargill look forward to continued partnership to ensure an even greater impact in the remaining two years of the grant. FFA’s Molly Ball says, “This grant allows us to reach more members and continue providing new opportunities that help feed the talent pipeline."
| Rural Advocate News | Wednesday March 20, 2024 |
Wednesday Watch List Markets The Energy Department's weekly inventory report is at 9:30 a.m. CDT Wednesday, followed by a Fed rate announcement at 1 p.m. Most expect the Fed to keep the federal funds rate target unchanged at 5.25% to 5.50%. Traders continue to keep close watch on South American weather. Weather A cold front that moved through the north on Tuesday continues farther south on Wednesday with colder temperatures settling across northern areas. That will continue some lake-effect snows in the Great Lakes and snow will start to develop in the Northern Plains as a system starts to move into the Pacific Northwest. An upper-level low in the Southwest will finally start to move eastward into the Southern Plains where some showers will be possible as well.
| Rural Advocate News | Tuesday March 19, 2024 |
Senators Demand Increase in Ag Exports A group of Senate Republicans are demanding the Biden administration take action to increase agricultural exports. The group of 19 Senators penned a letter to U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack urging them to increase U.S. agricultural exports and improve the competitiveness of U.S. products abroad. The letter says, “The current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy that is failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade.” The lawmakers say diminishing access to foreign agricultural markets for U.S. industries creates significant economic headwinds and jeopardizes the livelihoods of more than one million American workers, farmers, and ranchers. For the 2023 marketing year, nearly 70 million acres of major crops like corn, soybeans, and wheat were planted to meet the demands of foreign customers. *********************************************************************************** Lawmakers Seek USDA Telework Policy Investigation Two Senate Agriculture Committee members are questioning the Department of Agriculture's telework policy. Republicans John Boozman of Arkansas and Joni Ernst of Iowa request USDA's Inspector General build upon its oversight of the federal agency's telework abuse and expand its investigation into the department's footprint and workforce. In a letter, Boozman and Ernst called for an enhanced investigation after USDA Secretary Tom Vilsack was questioned during a Senate Agriculture Committee hearing last month. The committee focused on a department supervisor's revelation to the committee that the agency's headquarters resemble a "ghost town," to which the secretary claimed that his employees and managers are in the D.C. office "a majority of the week." The letter states, "Secretary Vilsack's apparent misapprehension regarding the telework posture of his workforce underlines the importance of comprehensive reviews, audits, and evaluations of the USDA's telework, locality pay, and space utilization policies." The letter requests a response by March 27, 2024. *********************************************************************************** FAS Expands Presence in Mexico with New Guadalajara Office The Department of Agriculture is expanding its footprint in Mexico by opening the Foreign Agricultural Service's newest foreign office in Guadalajara last week. FAS Administrator Daniel Whitley says, "The decision to establish this new office reflects the importance of our agriculture and trade relationship with Mexico." Whitley presided over a ribbon-cutting ceremony on March 11 with Consul General Amy Scanlon from the U.S. Consulate in Guadalajara. U.S.-Mexico bilateral trade in agricultural and related products reached a record of more than $76 billion in 2023, benefiting the entire supply chain, from producers to processors to shippers to consumers, making high-quality farm and food products more readily available on both sides of the border. Guadalajara is Mexico's second-largest city and is the capital of the of the of Jalisco in west-central Mexico. The region is considered Mexico's breadbasket, home to large agricultural production and processing industries, and an important economic, cultural, and commercial center. ***********************************************************************************| NPPC Applauds USDA Purchase of More Pork for Nutrition Programs Using funds from its Commodity Credit Corporation, the Department of Agriculture is purchasing an additional 33.5 million pounds of pork — worth more than $78.6 million — for distribution to various food nutrition and assistance programs. Earlier this year, USDA bought $25 million of pork under Section 32 of the Agricultural Adjustment Act of 1935, which authorizes the Secretary of Agriculture to make commodity purchases, entitlement purchases, and disaster assistance using funds appropriated annually from U.S. customs receipts. The National Pork Producers Council applauded USDA’s purchase and says the organization will continue working with the agency to identify additional opportunities to find support for U.S. pork producers during challenging market conditions. The U.S. pork industry has faced a challenging economic market over the past 18 months, with producers losing an average of $30 — sometimes $40 to $60 — on each hog marketed in 2023. NPPC says these pork purchases provide much-needed support to the hog and wholesale pork markets and secure affordable, nutritious pork products for USDA recipient programs. *********************************************************************************** USDA: Infant Formula Rebates Reduce WIC Spending Rebates for infant formula help reduce costs of the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC. USDA’s Economic Research Service reports that from 1989 to 2022, savings to WIC from the rebates totaled $71.9 billion in inflation-adjusted 2022 dollars, or 23 percent. Without the rebates, the Federal Government would have spent about $307.5 billion on the WIC program over that period. With the rebates, the Government spent $235.6 billion. The greatest savings come from strategies used to contain the costs of providing infant formula through the program. Since 1989, most WIC state agencies have used competitive bidding to award contracts to a single manufacturer to serve as the formula of first choice for infant participants in their state. In return, manufacturers offer WIC State agencies rebates for each unit of formula sold through the program. State agencies responsible for implementing WIC use cost-containment strategies to reduce program costs. *********************************************************************************** Gas Higher Again, Diesel Lower The national average gas price increased for the third consecutive week, climbing 4.4 cents from a week ago to $3.44 per gallon, according to GasBuddy. The national average is up 18.7 cents from a month ago and 1.6 cents per gallon higher than a year ago. U.S. retail gasoline demand saw a rise of 3.1 percent for the week. The national average diesel price declined 2.2 cents last week and is $4.00 per gallon—28 cents lower than one year ago. GasBuddy's Patrick De Haan says, "For now, gas prices will likely continue to trend higher, but the fever may break soon." Refinery output is starting to increase as the maintenance season comes to an end. When it comes to diesel, above-average temperatures have lowered heating oil demand, and average diesel prices are on the cusp of falling back below $4 per gallon. The most common U.S. diesel price stood at $3.89 per gallon.
| Rural Advocate News | Tuesday March 19, 2024 |
Tuesday Watch List Markets A report on U.S. housing starts in February will be out at 7:30 a.m. CST Tuesday. The Federal Reserve starts its two-day meeting and is expected to keep the federal funds rate unchanged on Wednesday. Traders continue to keep an eye on South American weather and recent events in Ukraine. Weather A clipper system is moving through the Great Lakes Tuesday. A cold front following behind it will be bringing in a fresh round of colder air to the northern tier of the country, setting the stage for an active and snowier pattern for the rest of the week.
| Rural Advocate News | Monday March 18, 2024 |
Justice Department, FTC Statements on Right to Repair The Justice Department’s Antitrust Division and Federal Trade Commission submitted comments to the U.S. Copyright Office advocating for regulations that would facilitate the right to repair. The agencies are in favor of consumers and businesses getting to repair their own equipment. The Copyright Office is considering whether to recommend that the Library of Congress renew and expand temporary exemptions to the Digital Millennium Copyright Act’s prohibition against the circumvention of technology protection measures that control access to copyrighted content. In their comments, the agencies said that renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair and maintenance services, and facilitate competition in markets for repairable products. “Promoting competition in repair markets benefits consumers and businesses by making it easier and cheaper to fix the things they own,” the comments say. “Expanding repair exemptions can also remove barriers limiting independent service providers from doing their work.” *********************************************************************************** Bill Solidifies Critical Fertilizer Minerals The Fertilizer Institute thanks the U.S. Senate for introducing bipartisan legislation to include phosphate and potash on the final list of critical minerals of the Department of the Interior. TFI says the legislation will recognize the importance of ensuring a strong and sustainable domestic fertilizer supply for American farmers. ‘The majority of the world’s phosphate and potash resources are concentrated in only a few countries, leaving them open to supply chain vulnerabilities and geopolitical instability,” says TFI President and CEO Corey Rosenbusch. “The events of the last few years have shown us that food security is national security, and now is the time to change how we talk about these vital resources.” The U.S. imports about 95 percent of its potash needs, the bulk of which comes from Canada. Only 14 countries in the world produce potash. “This will help us take significant strides toward securing our food supply,” he adds. *********************************************************************************** U.S. Wheat Farms Dropped 40 Percent in 20 Years The Economic Research Service says the number of U.S. wheat farms has dropped substantially over time. Since 2002, the total number of wheat farms fell by over 40 percent, from 169,528 in 2002 to 97,014 in 2022. In addition to the decline in wheat farms, wheat production is down slightly but has been variable year to year. The ERS says annual wheat production ranged from about 1.6 billion bushels in marketing year 2002-2003 to as much as 2.5 billion bushels in 2008-2009. However, wheat production didn’t exceed two billion bushels from 2017 through 2023. The ERS says the reduction in the number of farms reporting wheat harvested area occurred across all wheat classes. The number of farms producing durum wheat saw the largest percentage drop, down nearly 60 percent from the 2002 Census and 30 percent from the 2017 Census. Only five states saw increases in the number of wheat farms. *********************************************************************************** USDA Issues March Livestock Outlook In 2024, U.S. beef exports are expected to be about 83 percent lower than those in 2023. The drop is due to lower beef production this year brought on by tightening cattle supplies and tougher global competition from beef exporting countries like Australia. Pork exports are forecast to increase by almost 4.6 percent from 2023 due to higher domestic production and less global competition from the European Union. Broiler exports this year are expected to decline about 1.4 percent compared to last year due to higher domestic prices and weak demand from China. Turkey is expected to be competitively priced in 2024, with exports forecast to be up 6.4 percent compared to last year. Compared with 2023, dairy exports on a skim-solids milk-equivalent basis should increase slightly this year by 0.2 percent. Relatively strong domestic demand for dairy products and limited growth in milk production will likely limit export growth. *********************************************************************************** USDA Invests in Organic Promotion The USDA’s Agricultural Marketing Service awarded about $40.5 million for 60 grant projects through the Organic Market Development Grant Program. These projects will support the development of new and existing organic markets, support the infrastructure to improve processing capacity, explore emerging technologies to promote organic products, and purchase equipment to help meet the increasing demand for organic commodities. USDA anticipates the projects funded through this program will benefit more than 27,000 producers and over 31.8 million consumers by increasing organic market opportunities. “Farmers who choose to grow organic often access new, more, and better markets,” says USDA Deputy Secretary Xochitl (so-CHEEL) Torres Small. “At USDA, we are committed to making it easier for farmers who make that choice through programs like the Organic Market Development Grant Program, which supports farmers and increases access to fresh, healthy foods.” This round of awards will address critical needs within the nation’s growing organic industry. *********************************************************************************** Lamb Lovers Month a Success February was Lamb Lovers month. The 2024 ad campaign called “Show Us Your Chops” reached over 125,000 culinary enthusiasts across three targeted demographics. The campaign helped drive more than 10,000 unique visitors to the American Lamb Board’s consumer website. Once on the site, visitors learned more about American Lamb, had access to recipes, and had the option to enter a campaign contest to win a Dutch oven and two racks of American Lamb. “This campaign proved to be a cost-effective advertising campaign for reaching culinary enthusiasts and provided some key insights into various demographics targeted by the campaign,” says ALB chairman Jeff Ebert. The campaign ran ads on Facebook and Instagram targeting consumers interested in dining and cooking. The audience was then subdivided into three categories by age and stage of life. They include “Culinary Curious” at 28-34 years old, “Culinary Hustlers” at 35-44 years old, and “Culinary Connoisseurs” at 48-67.
| Rural Advocate News | Monday March 18, 2024 |
Top 5 Things to Watch - National Ag Day, Cold Clipper Coming 1. National Ag Day, March 19: Sunday is St. Patrick's Day, and with the warm winter things are beginning to green up around the country. That also means it's time for National Ag Day, March 19. There will be celebrations around the U.S., and a number of observances and festivities in Washington, D.C. on Tuesday. DTN, which is a sponsor of the Agriculture Council of American that organizes National Ag Day, will be on hand in the nation's capital 2. Podcasts hit hot topics: In addition to timely news coverage, we explore the background of many of our top stories via the Progressive Farmer Field Posts podcasts. The latest, a wrap-up of the 2024 Commodity Classic, is up in our podcast area, and next week we'll have a summation of Ag Day events. Podcast host Sarah Mock will be interviewing DTN Editor-in-Chief Greg Horstmeier on those topics. 3. Cattle on Feed Report Friday: As noted below, Friday is the latest Cattle on Feed Report numbers; we'll have a preview by DTN Livestock Analyst ShayLe Stewart earlier in the week and analysis of the latest numbers Friday afternoon. 4. Cool clipper coming: The previous week ended like a lion, with storms, hail and tornado damage around the Midwest. That will be followed by a clipper system will quickly move through the Midwest this weekend and will send a stronger cold front and burst of below-normal temperatures through the country going into early next week. The storm will also produce lake-effect snow in the Great Lakes. 5. Economic reports to watch: Monday, 9 a.m. has the Grain Inspections and the Home Builder Confidence Index. Tuesday, we'll see the 7:30 a.m. release of February Housing Starts and Building Permits. Wednesday, at 1 p.m. we expect the latest Federal Reserve interest-rate decision, followed by Federal Reserve Chair Jerome Powell's press conference at 1:30. At 2 p.m. we'll see the Broiler Hatchery report. Thursday starts early with 7:30 a.m. release of Grain Export Sales and Initial Jobless Claims. At 8:45 a.m. there is the S&P Services and Manufacturing PMIs. At 9 a.m. the U.S. Leading Economic Indicators and Existing Home Sales reports hit, followed by Livestock Slaughter numbers at 2 p.m. On Friday, at 2 p.m. is the U.S. Cattle on Feed and Chicken and Eggs reports.
| Rural Advocate News | Monday March 18, 2024 |
Monday Watch List Markets Traders will return from the weekend and quickly catch up on the latest weather forecasts for South America. USDA's weekly export inspections report will be out at 10 a.m. CDT with more shipments needed for wheat as the season ticks down. On Wednesday, the Federal Reserve probably won't change the federal funds rate target, but traders will be listening for clues from Chairman Jerome Powell. Weather A cold front that moved through most of the country over the weekend is building some cold air into most areas east of the Rockies on Monday. The colder air is producing some lake-effect snow in the Great Lakes and late frosts across the Deep South for Monday night.
| Rural Advocate News | Friday March 15, 2024 |
Advocating Amid Decline in Ag Exports Senators Chuck Grassley (R-IA) and John Thune (R-SD) joined colleagues in urging U.S. Trade Representative Katherine Tai and Ag Secretary Tom Vilsack to improve ag export opportunities. They joined Senators John Boozman (R-Ark.) and Mike Crapo (CRAY-po) (R-Idaho) in writing a letter to Vilsack and Tai acknowledging that trade fluctuates because of macroeconomic factors and market conditions. “However, the current sharp decline in U.S. agricultural exports is directly attributable to and exacerbated by an unambitious U.S. trade strategy that’s failing to meaningfully expand market access or reduce tariff and non-tariff barriers to trade,” the senators wrote in a letter. “While the administration refuses to pursue trade agreements, China, Canada, the EU, the United Kingdom, and others continue to ink trade pacts that diminish American export opportunities and global economic influence.” Grassley, Thune, and Boozman serve on the Senate Agriculture Committee while Crapo is the top Republican on the Senate Finance Committee. *********************************************************************************** Risk Management Tool for Specialty and Smaller Producers The Risk Management Agency knows that finding the right risk management tools for specialty crops and smaller-scale farmers can be overwhelming. That’s why the RMA created a new searchable directory of crop insurance agents who have experience selling Whole Farm Revenue Protection and Micro Farm policies. With 1,135 crop insurance agents listed and providing coverage in all 50 states, the process of finding the “right risk management fit” got easier. “The new tool is part of RMA’s efforts to make crop insurance more equitable and accessible for all producers,” says RMA Administrator Marcia Bunger. “Whole Farm Revenue Protection and Micro Farm are two of the most comprehensive risk management plans available, and they are especially important to specialty crop, organic, urban, and direct-market producers.” The tool also includes regional specialists located in each of the RMA’s regional offices. Specialty crop producers and small-scale producers can go to rma.usda.gov for more information. *********************************************************************************** World Pork Expo is in June The National Pork Producers Council announces the World Pork Expo returns on June 5-6 at the Iowa State Fairgrounds in Des Moines. Though pork producers have faced their share of challenges, the annual Expo showcases the best the industry offers in the form of educational and networking opportunities not found anywhere else. The world’s largest pork-specific trade show returns with more than 700 booths showcasing the latest and greatest in pork production technology and services. Just some of the things attendees can expect include a new schedule with two days filled with seminars, networking, and innovation from 9 a.m. to 5 p.m. each day. It’s also a chance to connect with over 10,000 industry professionals in the ultimate meeting place for pork producers. It’s a festival atmosphere, including a celebration of pork with new entertainment, blending professional insights with a lot of fun. For more information, attendees should go to worldpork.org. *********************************************************************************** Strengthening the U.S. Bioeconomy The USDA released a plan to boost biomass supply chain resiliency for domestic biobased product manufacturing. The plan will also advance environmental sustainability and market opportunities for small and mid-sized producers. The plan is called “Building a Resilient Biomass Supply.” “The increasing demand for biomass is a golden opportunity to expand markets and create new revenue for American farmers, ranchers, and forest landowners, particularly in rural areas,” says Ag Secretary Tom Vilsack. “This comprehensive roadmap will strengthen our production and pre-processing systems to provide incentives for producers and manufacturers so that biomass can be used to fuel the American economy.” Biomass is organic material that comes from crop residues, agricultural and food wastes, forest residuals, livestock, as well as biomass crops that are grown specifically as feedstocks to produce biobased products. Biobased products contributed $489 billion to the U.S. economy in 2021, a more than five percent increase from 2020. *********************************************************************************** Purina Offering $20,000 in Scholarships Purina Animal Health, along with the Land O’ Lakes Foundation, has opened its scholarship program designed to assist students with experience in agriculture and livestock production to pursue their education. Now, along with undergraduate students, current high school seniors who have experience in raising and caring for small or large livestock, equine, or poultry, are eligible to apply for one of four $5,000 scholarships. Along with the impact animal agriculture has had on their lives, desired applicants will be able to demonstrate academic excellence, leadership skills, community involvement, and have a clear vision for their future. Scholarship applications will be accepted March 18 through April 17. Applicants will receive their scholarship funds for the Fall 2024 semester at their current or anticipated education institution. The scholarship is open for high school seniors enrolling in full-time undergraduate studies and undergraduate students enrolled in a two or four-year college or vocational-technical school. *********************************************************************************** Australian Farmers More Confident After Rainfall Widespread rainfall and improving livestock prices are giving Australian farmers more confidence than they’ve had in a couple of years. A survey published this week shows Australian farmers’ confidence levels at their highest point in two years. Australia is one of the world’s biggest agricultural exporters and a top competitor of the United States. An El Nino weather pattern last year sank farmers’ confidence as the weather brought dry conditions that hammered crop yields hard and pushed livestock markets lower. Unexpected rain across the southern and eastern parts of the country during the southern hemisphere’s summer season has turned pastures green, pushed sheep and cattle prices higher, and raised the prospect of bigger harvests. Reuters says some forecasters expect El Nino to flip to La Nina later this year. That typically brings wetter weather to eastern Australia. More farmers are positive than negative in expectations for the first time since June 2023.
| Rural Advocate News | Friday March 15, 2024 |
Friday Watch List Markets The Federal Reserve's report of U.S. industrial production for February will be out at 8:15 a.m. CST Friday. The University of Michigan's consumer sentiment index for March will follow at 9 a.m. Traders remain interested in South American weather and will keep an eye on April crude oil prices that closed at a new four-month high on Thursday. Weather A system that has brought heavy thunderstorms and severe weather to parts of the Plains and Midwest the past couple of days continues in the Southeast for Friday. Storms are not expected to be as strong as the past couple of days but could still be severe across the southern tier. An upper-level low-pressure center in the Southwest will keep the Four Corners and front range areas active with showers and snow.
| Rural Advocate News | Thursday March 14, 2024 |
Trade Mission Offers New Opportunities in South Korea Representatives from 49 U.S. companies and organizations will join the Department of Agriculture agribusiness trade mission to Seoul, South Korea. Led by Undersecretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor, the mission takes place March 25-28. Undersecretary Taylor says, "I'm confident that this trade mission will produce great results for America's farmers, ranchers, agribusinesses, and exporters, as we work to strengthen trade with our existing partners and expand and diversify the products we offer." South Korea ranks as the United States' fifth-largest single-export market. Also, as one of the fastest-growing economies in the developed world during the past several decades, and with relatively small amounts of arable land, South Korea relies heavily on imported agricultural goods, especially meat and bulk commodities, to satisfy food and feed demand. While on the trade mission, participants will engage in targeted business-to-business meetings and site visits to build new trade linkages, strengthen existing partnerships, observe U.S. products in the marketplace, and discover the latest Korean consumer food trends. *********************************************************************************** Overall Tractor Sales Lower Compared to February 2023 Unit sales of 100+ horsepower ag tractors increased slightly in February 2024 in the U.S., according to new data from the Association of Equipment Manufacturers. The month recorded an increase of 2.8 percent compared to February 2023. However, year-to-date data reflects sales below 2023 in total units of ag tractors and combines. Ag tractor sales dipped 14.2 percent, while combines finished under 18.9 percent. In Canada, combine sales jumped 27.2 percent in February 2024 compared to 2023, and are up a total of 6.3 percent year-to-date compared to last year. A total of 131 combines were sold in February, adding to the overall year-to-date sales of 255 units. AEM's Curt Blades says, "The combine sales in Canada are a bright spot when we take a deeper look at February's performance," adding, "The uptick in sales of 100+ horsepower ag tractors in the U.S. also bodes well for the long-term strength of our industry moving forward." Total ag tractor sales fell in Canada by 28.2% year-to-date compared to 2023. *********************************************************************************** USDA: Iowa leads States in Hog Production New data confirms Iowa is the top producer of hogs in the United States, with about $10.9 billion in cash receipts in 2022, according to USDA’s Economic Research Service. Cash receipts represent the value of sales of hogs by farmers to processors or final users. Following Iowa are Minnesota, North Carolina, and Illinois, with cash receipts of $3.6 billion, $3.1 billion, and $2.1 billion, respectively. Iowa accounted for about 35.5 percent of the $30.6 billion in total U.S. cash receipts for hogs in 2022. The top ten hog-producing states cumulatively accounted for 87.6 percent of hog receipts. In the latest Hogs and Pigs report from USDA, the National Agricultural Statistics Service indicated there were nearly 75 million hogs in the United States as of December 1, 2023. USDA’s Economic Research Service estimates farm sector cash receipts—the cash income received from agricultural commodity sales—three times each year. *********************************************************************************** Farm Bureau Fights Hunger Through Harvest for All Program Farm families from across the nation donated 31 million pounds of food and raised $425,879 to help fight hunger in 2023 through Farm Bureau’s “Harvest for All” program. Combined, the monetary and food donations totaled the equivalent of 26 million meals. Now in its 22nd year, Harvest for All is spearheaded by members of Farm Bureau’s Young Farmers & Ranchers program, but members of all ages from across the nation contribute to the effort. AFBF’s YF&R Committee Chair Kevin Lussier says, “Farm Bureau’s commitment to helping put food on the tables of those in need through Harvest for All remains strong.” Florida Farm Bureau took top honors for donating the most food in 2023, 22 million pounds, while Michigan Farm Bureau took top honors for raising the most money in 2023, $222,000. In addition to raising food and funds, farmers and ranchers tallied 21,571 hours for local food insecurity efforts and other community service. *********************************************************************************** Walmart Announces New Milk Processing Facility in Texas Walmart recently announced an investment in a new milk processing facility in Robinson, Texas, that will open in 2026. The facility will support nearly 400 jobs in the community and allow Walmart to meet the growing demand from customers. Walmart's Bruce Heckman says, "This new facility continues our commitment to building a more resilient and transparent supply chain and ensuring our customers' needs are met for this everyday staple." Walmart has been working across its food offerings to deliver increased transparency about where products come from and ensure supply for grocery essentials. It opened its first milk processing facility in Fort Wayne, Indiana, in 2018, and its second facility in Valdosta, Georgia, is expected to open in 2025. Additional investments include opening its first case-ready beef facility in Thomasville, Georgia, building a second case-ready beef facility in Olathe, Kansas, and making equity investments and long-term commercial agreements with Sustainable Beef LLC and vertical farming company Plenty. *********************************************************************************** Texas Reports More than $800,000 in Wildfire Donations Texas Agriculture Commissioner Sid Miller announced Wednesday the state has received more than $800,000 in donations for wildfire relief. The donations are through the State of Texas Agriculture Relief, or STAR Fund. Miller says, “The overwhelming response demonstrates the strength of our Texas spirit and our commitment to standing together in times of crisis." To date, more than 1,600 individuals have donated to the fund that will provide financial assistance, helping farmers rebuild and recover from the unprecedented damage. The STAR Fund, administered by the Texas Department of Agriculture, provides financial assistance to agricultural producers who have suffered losses due to natural disasters, including wildfires, floods, hurricanes, and droughts. The funds collected will be distributed directly to those in need to help cover expenses such as livestock feed, fencing repairs, and other essential recovery efforts. Those who wish to contribute to the STAR Fund can visit the Texas Department of Agriculture website for more information.
| Rural Advocate News | Thursday March 14, 2024 |
Thursday Watch List Markets DTN's Ag Summit Series continues at 8 a.m. CST Thursday for those that registered (see ). USDA's weekly export sales will be out at 7:30 a.m., the same time as weekly U.S. jobless claims, U.S. producer prices and retail sales for February and an update of the U.S. Drought Monitor. The Energy Department's weekly natural gas storage report will be out at 9:30 a.m., followed by USDA's Livestock, Dairy and Poultry Outlook for March at 2 p.m. Weather A system is moving through the middle of the country Thursday with scattered showers and thunderstorms. It has already produced large hail in Kansas and northern Missouri and will spread that threat out from northeast Texas to Ohio today. Large hail is again the biggest threat, but tornadoes and strong winds are also possible. Heavy snow continues in the Four Corners and front range areas as well.
| Rural Advocate News | Wednesday March 13, 2024 |
February Grocery Prices Unchanged Grocery prices held steady in the latest Consumer Price Index by the Department of Labor. While food prices stayed flat, the overall index increased .4 percent, following a .3 percent increase in January. Three of the six major grocery store food group indexes decreased over the month. The index for dairy and related products decreased 0.6 percent in February, led by a 1.1 percent decline in the index for cheese and related products. The fruits and vegetables index decreased 0.2 percent over the month, as did the nonalcoholic beverages index. The cereals and bakery products index rose 0.5 percent in February, following a 0.2 percent decrease in January. The meats, poultry, fish, and eggs index also increased over the month, rising 0.1 percent. The index for other food at home was unchanged over the month. The food away from home index rose 0.1 percent in February after rising 0.5 percent in January. *********************************************************************************** Vilsack Announces Broadband, Drinking Water Investments Agriculture Secretary Tom Vilsack Tuesday announced funding for high speed internet and drinking water systems for tribal communities. The Department of Agriculture is investing $58 million in Tribal communities in Nevada, Oklahoma and South Dakota. The funding will support economic development, high-speed internet deployment and modern infrastructure. The projects are being financed through the ReConnect Program and the Water and Waste Facility Loans and Grants to Alleviate Health Risks on Tribal Lands Program. Vilsack says, “USDA is committed to building our economy from the middle out and bottom-up by bringing high-speed internet, clean water and critical infrastructure to people in small towns and communities everywhere." Vilsack made the announcement at one of the nation's largest Tribal economic development conferences, the National Center for American Indian Enterprise Development's Reservation Economic Summit in Las Vegas, Nevada. Investments in the announcement were made possible by various USDA Rural Development programs. *********************************************************************************** Farms Received Nearly a Quarter of Each Food-at-home Dollar in 2022 In 2022, farm establishments received 24.1 cents for each dollar spent on food at home and 3.6 cents for each dollar spent on food away from home. These amounts, called farm shares, highlight the different paths that food takes from farms to consumers' points of purchase, according to USDA’s Economic Research Service. Food-at-home dollars include food purchases from outlets such as grocery stores, supermarkets, and wholesale clubs that are meant to be prepared at home. Food-away-from-home dollars include food purchases at restaurants, including delivery and carry-out, and other venues where the food is eaten on the premises. The remainder of each food dollar makes up the marketing share, which is the total value of processing, transportation, retailing, and other activities that get food from farm operations to points of purchase for consumers. In 2022, the marketing share was 75.9 cents per food-at-home dollar and 96.4 cents per food-away-from-home dollar. *********************************************************************************** USCA Calls Product of USA Rule a Victory The United States Cattlemen's Association calls USDA's final voluntary 'Product of USA' rule a victory. Agriculture Secretary Tom Vilsack announced the rule Monday at the National Farmers Union annual convention. USCA has worked tirelessly to clarify years of confusion at the consumer level regarding the labeling of U.S. beef products. Starting in 2017, USCA's Director Emeritus Leo McDonnell led a nationwide fundraising effort of cattle producers nationwide that initiated federal rulemaking to close the loophole created by the 2015 repeal of mandatory country-of-origin labeling. The final rule announced yesterday follows a request made by the USCA in a petition for rulemaking submitted to USDA's Food Safety and Inspection Service in 2019. McDonnel stated, "This announcement takes the necessary steps to bring back truth in labeling." USCA President Justin Tupper added, "USCA is thrilled that the final rule finally closes this loophole by accurately defining what these voluntary origin claims mean. *********************************************************************************** USDA Identifies 2024 Food for Progress Priority Countries The Department of Agriculture Tuesday announced the 2024 Food for Progress Priority Countries. USDA, through its administration of the Food for Progress Program, helps developing countries and emerging democracies modernize and strengthen their agricultural sectors. U.S. agricultural commodities donated to recipient countries are sold on the local market, and the proceeds are used to support agricultural, economic, or infrastructure development programs. Food for Progress has two principal objectives: to improve agricultural productivity and to expand the trade of agricultural products. For Fiscal Year 2024, Food for Progress anticipates awarding seven new cooperative agreements for projects of three- to five years in duration. Priority countries include Benin, Cambodia, Madagascar, Rwanda, Sri Lanka, Tanzania, and Tunisia. When available, the FY 2024 Notice of Funding Opportunity and information on how to apply will be published on Grants.gov. Past Food for Progress projects have trained farmers in animal and plant health, helped improve farming methods, and developed road and utility systems. *********************************************************************************** California Sets E85 Sales Record in 2023 California, in 2023, set a new E85 sales record. Growth Energy welcomed the new California Air Resources Board data this week. Growth Energy CEO Emily Skor says, "Californians used more E85 than ever last year, a fact that demonstrates how enthusiastic consumers are about higher biofuel blends." Skor encouraged policymakers to take note of the rise of E85 in California and to find ways to lower consumer costs by increasing biofuels' share of the American fuel tank. However, Skor also called on California to fast-track approval of E15. California is the only state in the U.S. where E15--a blend made with 15 percent bioethanol that the U.S. Environmental Protection Agency approves for use in all vehicles made in model year 2001 and newer--is not approved for sale. Still, fuel retailers in the state have taken steps to sell more E85 to California drivers.
| Rural Advocate News | Wednesday March 13, 2024 |
Wednesday Watch List Markets The Energy Department's weekly inventory report at 9:30 a.m. CDT Wednesday, including ethanol production. Traders remain attentive to South American weather and we are getting closer to USDA's report of Prospective Plantings survey, due out at the end of March. Weather A large storm system will be developing in the Central and Southern Plains on Wednesday, bringing widespread showers and thunderstorms there and to the western Midwest. Some thunderstorms could be strong to severe across northeast Kansas and northern Missouri Wednesday evening.
| Rural Advocate News | Tuesday March 12, 2024 |
USDA Finalizes “Product of USA” Label Claim Agriculture Secretary Tom Vilsack Monday announced the finalization of a rule to align the voluntary “Product of USA” label claim with consumer understanding of what the claim means. Vilsack made the announcement during a speech to attendees of the National Farmers Union Annual Convention in Scottdale, Arizona. Vilsack says, “This final rule will ensure that when consumers see ‘Product of USA’ they can trust the authenticity of that label and know that every step involved.” USDA’s final rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. The rule will prohibit misleading U.S. origin labeling in the market, and help ensure that the information consumers receive about where their food comes from is truthful. Establishments voluntarily using a claim subject to the final rule must comply with the new regulatory requirements by January 1, 2026. *********************************************************************************** Crop Insurance Deadline Nears Farmers not yet enrolled in the Agriculture Risk Coverage or Price Loss Coverage programs for the 2024 crop year have until March 15, 2024, to revise elections and sign contracts. Both safety net programs, delivered by USDA’s Farm Service Agency, support to farmers who experience substantial declines in crop prices or revenues for the 2024 crop year. Producers can elect coverage and enroll in ARC-County or PLC, which provide crop-by-crop protection, or ARC-Individual, which protects the entire farm. Although election changes for 2024 are optional, producers must enroll, with a signed contract, each year. If a producer has a multi-year contract on the farm, the contract will continue for 2024 unless an election change is made. If producers do not submit their election revision by the March 15, 2024, deadline, the election remains the same as their 2023 election for eligible commodities on the farm. For more information on ARC and PLC, contact your local USDA Service Center. *********************************************************************************** Drought Conditions Influence Fluctuations in Beef Cattle Herd New data from USDA Economic Research Service shows that changes in drought conditions impact the size of the U.S. beef cattle herd. Specifically, when the percentage of land area of drought increases for an extended period as noted in the U.S. Drought Monitor, the U.S. beef cattle herd often declines. In 2023, with more than 65 percent of U.S. land area in drought, the U.S. beef cattle herd declined roughly 2.5 percent. When drought conditions diminish forage production and availability, beef cattle producers often must buy supplemental feed and forage or reduce their herd size. Periods of more intense drought are associated with decreases in the U.S. beef cattle herd size, such as when the national beef cattle herd shrank about one to two percent a year during drought between 2011 and 2015. Other factors outside of drought conditions also influence changes in the beef cattle herd size, including feed and forage prices, extreme precipitation events, supply chain issues, and the natural life cycles of livestock. *********************************************************************************** World to Rebuild Rural Ukraine Released February Export Data World to Rebuild Rural Ukraine reports Ukraine managed to export eight million metric tons of agricultural products in February, 3.4 percent more than the previous month. Of that, 5.2 million metric tons were exported through the sea corridor, a record volume since the beginning of Russia’s large-scale invasion of Ukraine. Since August 2023, 19 million metric tons of agricultural products have been shipped to foreign markets, which is 68 percent of the total volume of cargo. Ukraine has shipped 2.5 million metric tons of grain and oil through the Danube ports during the first months of 2024. Meanwhile, exports of sunflower oil in February exceeded last year's figure by 50 percent as 603,000 metric tons were exported. And Ukraine exported 8,500 metric tons of dairy products in February, and increase of 22 percent from last year. With planting season underway, WRRU reports costs for the four main expense components—fertilizers, chemicals, seed and fuel are down five percent this year for grains and four percent for oilseeds. *********************************************************************************** Gas Prices Inch Higher, Diesel Lower The nation’s average gas price is inching towards its year-ago level while diesel fell in the last week. GasBuddy reports the nation’s average price of gasoline increased 6.2 cents from a week ago to $3.40 per gallon. The national average is up 23.0 cents from a month ago and 4.5 cents per gallon lower than a year ago. The national average price fell 1.3 cents in the last week and stands at $4.02 per gallon—30 cents lower than one year ago. GasBuddy’s Patrick De Haan says, “Much of the seasonal rise that happens this time of year is a culmination of refinery maintenance, the switch to summer gasoline, and rising demand.” However, if refineries continue to boost output of products like gasoline, diesel, and jet fuel, it could mean earlier-than-expected relief. De Haan says the changeover is still in process, so the nation will likely see the continuation of upward pressure on prices, for now. *********************************************************************************** Farm Bureau Recognizes Graduates of Partners in Advocacy Leadership Class The American Farm Bureau Federation recently honored ten leaders in agriculture as graduates of the organization’s 11th Partners in Advocacy Leadership class. PAL was designed to help agricultural leaders accelerate their engagement abilities and solidify their roles as advocates for agriculture. AFBF President Zippy Duvall says, “We look forward to seeing how their dedication to advocating on agricultural issues will continue to benefit rural communities at the local, state and national level.” The training involves four learning modules designed to develop specific advocacy skills, including storytelling, policy development and stakeholder engagement. The modules build on one another over the two years of the program and include intense, in-person, hands-on training. Applications for PAL Class 12 will be accepted through March 25 and must be approved by the applicant’s state Farm Bureau president. To be eligible for the program, candidates must be between the ages of 30 and 45, with demonstrated leadership skills.
| Rural Advocate News | Tuesday March 12, 2024 |
Tuesday Watch List Markets The U.S. Labor Department will have the consumer price index for February out at 7:30 a.m., followed by a Treasury report on the U.S. budget for February at 1 p.m. Brazil's crop agency, Conab, will also release its latest production estimates for Brazil Tuesday morning. Weather A weak disturbance will move through the middle of the country on Tuesday and some isolated showers and thunderstorms should pop up in and around Missouri. Otherwise, it will be a quiet day for those east of the Rockies. A system will be moving through the West, however, and will be an important storm system for the rest of the week
| Rural Advocate News | Monday March 11, 2024 |
House Ag Committee Offers Farm Labor Solution The House Agriculture Committee laid out a roadmap to relieve labor shortages that have seriously impacted America’s farmers and ranchers. The Agriculture Labor Working Group released its final report on how to improve the H-2A guest worker program. It includes more than 20 recommendations to streamline the program and make labor more affordable for farmers. “We’re losing American farms rapidly, and there’s no question the broken workforce system is partly to blame,” says Farm Bureau President Zippy Duvall. While the working group recommendations don’t address all the labor challenges facing farmers, they do offer needed solutions, such as streamlining the recruiting and hiring of H-2A employees. They also want to expand the H-2A program to meet year-round needs, recommend paying employees based on duties performed during the majority of the day, and reform wage calculation standards to provide stability in farmworker pay rates. The full committee report is available at agriculture.house.gov. *********************************************************************************** Pork Exports Start Quickly in 2024 U.S. pork exports raced to a great start in the new year. January USDA data shows exports during the month were led by another strong performance in Mexico, the number one market for American pork. However, pork also made gains in other Western Hemisphere and Asia-Pacific destinations. Pork exports reached 241,424 metric tons in January, six percent higher than a year ago. Export value rose six percent to $682.1 million. “Mexico’s demand for U.S. pork is so spectacular that it can overshadow some of the other great success stories,” says U.S. Meat Export Federation President and CEO Dan Halstrom. U.S. beef exports were slightly behind last year’s volume, but export value trended significantly higher. Beef exports totaled 99,764 metric tons, one percent lower than last year. Beef export value rose nine percent to $763.8 million. January exports of U.S. lamb totaled 303 metric tons, up 28 percent from a year ago. ********************************************************************************** March WASDE Shows Few Major Changes The March World Ag Supply and Demand Estimates Report looked very similar to February’s numbers This month’s 2023-2024 U.S. corn outlook is unchanged relative to last month. The season-average corn price received by producers is lowered to $4.75 a bushel based on observed prices to date. The outlook for U.S. soybean supply and use for 2023-2024 is also unchanged this month. Higher soybean meal exports are mostly offset by lower domestic use. The season-average soybean price and soybean meal price forecasts are also unchanged from last month. The outlook for 2023-2024 U.S. wheat this month calls for unchanged supplies and domestic use, lower exports, and higher ending stocks. Exports were reduced by 15 million bushels to 710 million. Ending stocks were raised by the same amount to 673 million bushels and are 18 percent higher than last year. The season-average wheat price dropped by five cents to $7.15 a bushel. *********************************************************************************** Missouri River Runoff Forecast Below Average A warm February led to increased snowmelt and runoff in the Missouri River Basin above Sioux City Iowa. February runoff was 1.8 million acre-feet, 161 percent of average with above-average runoff in every reach except Sioux City, which was near average. However, the updated 2024 calendar year runoff forecast for the basin continues to be below average. “Despite the increased runoff in February and improved soil moisture conditions, we expect 2024 runoff to remain below average,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Water Management Division. The much warmer-than-normal temps led to an early melt of the lower-than-average plains snow. Soil moisture conditions are near or above normal across most of the basin with below-normal soil moisture conditions in the eastern basin. The 2024 calendar year runoff forecast above Sioux City is 17-million-acre feet, 66 percent of average. Current system storage is 53.9 MAF. *********************************************************************************** Applications Open for Angus Foundation Scholarship Applications are open for the Angus Foundation’s Commercial Cattlemen Scholarship, which awards four $1,500 scholarships to outstanding young people in the beef industry. This scholarship is unique from others offered by the Foundation as it aims to support students specifically from the commercial sector of the industry. “We’re proud to offer this scholarship opportunity to students from commercial cattle backgrounds,” says Jaclyn Boester, Angus Foundation executive director. “We recognize the importance of supporting young people using Angus genetics and want to help them succeed in our industry.” Students should be pursuing an undergraduate or vocational degree at an accredited higher education institution, and selection emphasis is placed on the applicant’s knowledge of the cattle industry and their perspective on the Angus breed. Young men and women are eligible to receive the scholarship if they’ve transferred a registered Angus animal in or out of their herd in the last three years. *********************************************************************************** NPPC Elects News Officers The National Pork Producers Council announced the induction of new officers and newly elected members to its board of directors. “We’re thrilled to welcome these accomplished individuals to NPPC’s board of directors,” says NPPC CEO Bryan Humphreys. “The diverse backgrounds and proven track records will provide valuable perspectives and strategic insights as the pork industry navigates the challenges and opportunities ahead.” Lori Stevermer of Easton, Minnesota, was elected NPPC President. She’s a co-owner of Trail’s End Farm and has a rich history of advocating for the pork industry at local, state, and national levels. She previously served on the executive board of the Minnesota Pork Producers Association. During her year as president-elect, she exemplified her leadership and unwavering commitment to the industry by testifying before Congress and representing the industry at international trade conferences. Duane Statler of Ohio was elected as president-elect. Rob Brenneman of Washington, Iowa, is the new vice president.
| Rural Advocate News | Monday March 11, 2024 |
Monday Watch List Markets Don't forget we're now on daylight savings time. Traders will return from the weekend, looking at the latest weather forecasts and any news that might interest the market. USDA's weekly export inspections is set for 10 a.m. CDT Monday, followed by a report on the consumer price index on Tuesday morning. Weather A system is well off the East Coast while another is over the West, making for a generally quiet day for most of the country. It is breezy though on the East Coast and even the quiet conditions in the middle of the country will be a little breezy, as is typical for spring. That could heighten the wildfire risk in the Plains in areas that did not receive much precipitation from last week's storm system.
| Rural Advocate News | Friday March 8, 2024 |
Pork Forum Passes Enhanced Traceability Resolution U.S. pork producers approved a resolution to enhance the country’s live swine traceability system during the 2024 National Pork Industry Forum hosted by the National Pork Producers Council. “Traceability is a priority for the industry and has been for decades,” says Lori Stevermer, incoming NPPC president and Minnesota producer. “These standards will improve our ability to control the spread of a foreign animal disease and lessen the economic impact of an outbreak should one occur.” A producer-led task force brought together stakeholders in the supply chain to identify gaps in the traceability system. That process resulted in several recommendations, including all swine owners needing to register for a premises identification number. Other recommendations include high-risk swine being required to get tagged with an Animal Identification Number RFID tag. ”Industry delegates at Pork Forum took a proactive step to protect animal health and producers’ livelihoods,” says NPPC’s Immediate Past President Scott Hays. *********************************************************************************** Disaster Relief Fund Opens After Texas Wildfires The Texas & Southwestern Cattle Raisers Association announced that cattle producers impacted by wildfires in the Texas Panhandle and Western Oklahoma can now apply for financial help. The emergency assistance is available through the group’s Disaster Relief Fund. The fund will distribute financial assistance to reduce the burdens incurred by cattle producers from wildfire damages that weren’t covered through insurance or other means of aid. The application window comes after hundreds of individuals and companies donated generous gifts in response to the second-largest wildfire event in the U.S. Donations continue to be accepted to benefit ranchers and landowners impacted by the natural disaster. Ranchers and landowners from the disaster-declared counties impacted by recent wildfires are eligible to apply in the open production period. Applicants are also not required to be a member of the Texas & Southwestern Cattle Raisers Association to qualify for aid. For more information, go to tscra.org. *********************************************************************************** AM Radio Act Gets Enough Support to Pass the House The AM for Every Vehicle Act has hit the magic number of voting co-sponsors it will need to ensure passage through the House of Representatives. Sponsors of the House legislation, led by New Jersey Representative Josh Gottheimer, announced they had picked up the 218th voting supporter. The majority of votes is necessary because Kentucky Senator Rand Paul blocked a bipartisan-driven majority consent vote in November. He’s seeking to override the AM mandate and instead use the legislation to end electric vehicle subsidies under the American Vehicle Tax Credit. As the bill moves closer to the goal, the Department of Transportation is ready to implement the legislation. In a February interview, Transportation Secretary Pete Buttigieg said he’s “ready to run with the Act the moment Congress gets it done.” The Act has picked up massive public support, including more than 400,000 emails, letters, and social media posts directed to Senators and Representatives. *********************************************************************************** More Positive Reaction to SEC Removing Scope 3 Requirements The Securities and Exchange Commission omitted the Scope 3 reporting requirement from its final climate disclosure rule. Scope 3 would have required public companies to report the greenhouse gas emissions from their supply chains and affected family farms and ranches. “Farmers are protecting the natural resources they’ve been entrusted with and continue advancing climate-smart agriculture,” says Farm Bureau President Zippy Duvall. “However, they can’t afford to hire compliance officers just to handle SEC reporting requirements.” International Dairy Foods Association President Michael Dykes says it would have placed a significant financial burden on millions of companies outside of SEC jurisdiction. “The proposed rule demonstrated a lack of engagement with the dairy value chain and a lack of analysis on the actual impact of the rule on privately held small entities,” he says. Some companies have said they will still require the emissions information from producers because investors, consumers, and other governments demand it. *********************************************************************************** U.S. and Canada’s Cattle Inventory Down Two Percent The USDA says all cattle and calves in the United States and Canada combined totaled 98.2 million head on January 1, 2024, down two percent from the 100 million head on January 1, 2023. The all cows and heifers that have calved inventory was down two percent from last year to 42 million head. All cattle and calves in the U.S. as of January 1, 2024, totaled 87.2 million head, down two percent from the 88.8 million head on January 1, 2023. The all cows and heifers that have calved inventory was 37.6 million head, two percent lower than last year. All cattle and calves in Canada on January 1 totaled 11.1 million head, two percent lower than last year. All sheep and lambs in the U.S. and Canada combined to total 5.86 million head on January 1, down two percent from the 5.98 million head on January 1, 2023. *********************************************************************************** Dairy Checkoff Sparking Innovation at Trade Show The dairy checkoff will showcase dairy innovation and its overall nutrition package to the more than 70,000 people attending the country’s leading trade show in the natural, organic, and healthy products industry. A Dairy Management Inc. team will be onsite at the Natural Products Expo West event March 12-16 in Anaheim, California. The goal will be to spur dairy innovation among entrepreneurs, investors, and others seeking to grow their food and beverage businesses. It’s the checkoff’s first time at the event. “We want dairy to show up in a big way,” says Maria Buerk, executive vice president of innovation for DMI. “It’s typically the non-dairy alternative companies that show up to this event, but this is the biggest natural foods show and we are the biggest natural food besides vegetables.” Among the checkoff’s goals at Expo West, the DMI team wants to share a new checkoff-created tool designed to help entrepreneurs: InnovateWithDairy.com.
| Rural Advocate News | Friday March 8, 2024 |
Friday Watch List Markets The U.S. Labor Department releases employment statistics for February at 7:30 a.m. CST, including the unemployment rate. USDA's March WASDE report will be out at 11:00 a.m., followed by DTN's WASDE webinar at 12:30 p.m. USDA will also release Livestock International Trade data at 11 a.m. Traders continue to monitor South American weather forecasts, but it remains to be seen if they consider USDA's South American crop estimates to be relevant. Weather A storm system that moved into the Plains on Thursday continues to slowly work its way eastward on Friday. It has already produced widespread showers and thunderstorms and will continue to do so on Friday, moving more through the Midwest and Gulf Coast states throughout the day. The storm is also bringing areas of snow to Nebraska and a risk of severe weather to the Gulf Coast
| Rural Advocate News | Thursday March 7, 2024 |
Vilsack Announces $2.3 Billion in Clean Power Projects Agriculture Secretary Tom Vilsack Wednesday announced $2.3 billion in projects to expand clean power in rural communities. USDA is moving forward on clean energy investments in 23 states to reduce pollution and strengthen rural America’s power grid. The announcement includes the first five awards totaling $139 million under the Powering Affordable Clean Energy program. Secretary Vilsack also announced $2.2 billion in funding awarded to 39 projects to help ensure over two million people in rural areas have access to reliable electricity. Vilsack says, “Rural electric cooperatives are the backbone of America’s power delivery.” Vilsack made the announcement at the National Rural Electric Cooperative Association’s PowerXchange annual meeting in San Antonio, Texas. American Farm Bureau Federation President Zippy Duvall responded, “Building new markets for commodities is difficult work and we are glad USDA is listening to participants and continuing to be nimble in implementing this program.” More details are available at USDA.gov. *********************************************************************************** SEC Drops Scope 3 Greenhouse Gas Reporting The Securities and Exchange Commission released a limited greenhouse gas disclosure rule that omits the requirement for large publicly traded companies to release greenhouse gas emissions data from private companies in their supply chain. This type of data, known as Scope 3 reporting, could have increased burdens on family farmers and ranchers whose beef is processed or sold by publicly traded companies, according to the National Cattlemen’s Beef Association. NCBA President Mark Eisele says, “The final SEC rule that omits supply chain emissions reporting entirely is a testament to NCBA’s engagement with federal agencies and Congress to defend America’s cattle producers.” In 2022, the SEC proposed a rule to require publicly traded companies to release data on their direct (Scope 1), energy and electricity (Scope 2), and supply chain (Scope 3) greenhouse gas emissions. The Scope 3 requirement was concerning to the cattle industry, because numerous farmers and ranchers have their beef processed by publicly traded companies or sold by publicly traded restaurants and retailers. *********************************************************************************** Clean Fuels Welcomes New Mexico Clean Transportation Fuel Standard Clean Fuels Alliance America applauds New Mexico Governor Michelle Lujan Grisham for signing legislation to create a clean transportation fuel standard for the state of New Mexico. The new law will help drive demand and open a new market for biodiesel and renewable diesel, while spurring economic opportunity and creating cleaner air for New Mexicans. The New Mexico Clean Transportation Fuel Standard tasks the Environmental Improvement Board with developing regulations to reduce transportation emissions by 20 percent from 2018 levels by 2030 and 30 percent by 2040. This technology and fuel-neutral program will generate new opportunities for the renewable fuel industry to help meet these carbon emissions reduction targets. Clean Fuels Director of State Regulatory Affairs Cory-Ann Wind says, “Cleaner fuels like biodiesel and renewable diesel will play a significant role in helping New Mexico reach its climate and air pollution goals.” New Mexico becomes the fourth state to pass a clean fuel standard, alongside California, Oregon and Washington. *********************************************************************************** Coalition Urges EPA to Reject CVR Energy Petition A coalition representing farmers and the ethanol industry this week urged the Environmental Protection Agency to reject a recent petition by CVR Energy to alter the Renewable Fuel Standard's credit trading program. CVR Energy's petition is a counterproductive proposal that would undermine the RFS and ultimately lead to higher prices for consumers, according to the group. CVR Energy has long sought to change the RFS, and in late December 2023 petitioned EPA to prohibit many businesses from possessing and trading Renewable Identification Numbers, or RINs. RINS are the credits that EPA uses to ensure obligated parties satisfy their obligations under the RFS. In a letter to the EPA, the coalition states, “Altering the structure of the RIN system would have disastrous impacts on renewable fuel producers, fuel marketers and retailers, obligated parties, and consumers in the form of higher prices at the pump.” The letter was signed by the Renewable Fuels Association, the National Association of Convenience Stores, National Farmers Union, and others. *********************************************************************************** Disease Mortality Gap Growing Between Rural and Urban Areas Over the last two decades, disease-related mortality rates have widened between rural and urban areas, especially for the prime working-age population, aged 25–54. Researchers with USDA’s Economic Research Service compared natural-cause mortality in rural and urban areas between two three-year periods, 1999–2001 and 2017–2019. They found the gap between rural and urban natural-cause mortality rates widened between the two time periods. Natural-cause mortality rates decreased across all age groups in urban areas. In rural areas, mortality rates decreased for most age groups, although not as much as for the same groups in urban areas, but increased for the prime working-age population. The rural group with the largest increase, 19 percent, in natural-cause mortality rates was 30- to 34-year-olds. Increased mortality rates for people who are of prime working age are an indicator of worsening population health, which could have negative implications for rural families, communities, employment, and the economy. *********************************************************************************** USDA Seeks Nominees for the Hazelnut Marketing Board The Department of Agriculture is seeking nominees for the Hazelnut Marketing Board. The nominees will fill five grower member seats, five alternate grower member seats, four handler member seats, and four alternate handler member seats whose terms will begin July 1, 2024. One grower member and alternate member position are allocated to each of the five districts. To become a grower member or alternate grower member of the board, a petition must be completed by growers within the respective district. The petition must then be signed by ten other growers in that district and submitted to the Hazelnut Marketing Board by March 31, 2024. Eligible nominees must be engaged in a proprietary capacity in the production of hazelnuts for market. The appointed members will serve two-year terms. The marketing order authorizes research and promotion, quality regulations, and volume control. The Hazelnut Marketing Board administers the order locally and consists of ten members. For nomination information, contact the Hazelnut Marketing Board.
| Rural Advocate News | Thursday March 7, 2024 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CST, the same time as weekly U.S. jobless claims, the U.S. trade deficit and an update of the U.S. Drought Monitor. Fed Chairman Powell speaks to the Senate Thursday and the Energy Department's weekly natural gas storage report will be out at 9:30 a.m. Weather A system moving out of the Rockies will continue to build scattered showers and thunderstorms across much of the middle of the country on Thursday. Thunderstorms could be strong to severe from central Texas into southern Kansas. The heavier rainfall, though patchy, is needed in the region. A small batch of heavier snow is forecast for northeast Colorado and southwestern Nebraska.
| Rural Advocate News | Wednesday March 6, 2024 |
Modest Improvement in Farmer Sentiment, Financial Concerns Loom The Purdue University-CME Group Ag Economy Barometer rose modestly in February posting a reading of 111, five points higher than a month earlier. The modest rise in the barometer was attributable to producers expressing somewhat more optimism about the future as the Future Expectations Index rose seven points to a reading of 115. The Current Conditions Index was unchanged at 103 compared to a month earlier. Meanwhile, February’s Farm Financial Performance Index reading of 85 was one point lower than in January and 13 points below its most recent peak in December. Weak crop prices continue to weigh on financial expectations as mid-February Eastern Corn Belt cash prices for corn and soybeans were percent and eight percent lower, respectively, than two months earlier when the December survey was conducted. When asked about their biggest concerns for their farm operation in the upcoming year, producers in this month’s survey continued to point to high input costs and lower crop and livestock prices. *********************************************************************************** USDA Releases Packers and Stockyards Act Final Rule on Competition The Department of Agriculture Tuesday announced the finalization of Inclusive Competition and Market Integrity Under the Packers and Stockyards Act. The final rule will be effective 60 days following publication in the Federal Register. The final rule, Inclusive Competition and Market Integrity Under the Packers and Stockyards Act, establishes clearer, more effective standards for prohibited practices relating to discrimination, retaliation, and deception in contracting. USDA says this will help producers and growers that have suffered from increasingly consolidated markets over the last 30 years by enhancing market integrity and ensuring fair access to economic opportunities. National Farmers Union President Rob Larew responded, “Today’s announcement is the culmination of years of work from NFU and supporters of equitable livestock markets.” The final rule comes on the heels of a successful effort by NFU and allied organizations to keep a harmful policy rider out of the FY 2024 appropriations agreement. Such a rider would have thrown out existing rules, prevented future rulemakings and blocked USDA from making similar progress on the Packers and Stockyards Act, according to NFU. *********************************************************************************** Livestock Groups Respond to Packers and Stockyards Rule The National Cattlemen's Beef Association responded to USDA's final Packers and Stockyards rule released Tuesday. NCBA Vice President of Government Affairs Ethan Lane says, "While we still have concerns about the unintended consequences of the rule, we are pleased that USDA has addressed most of our significant concerns between the proposed and final rules." NCBA's concern with the regulation has always been based on the rule's unforeseen impacts on standard business practices. However, Julie Anna Potts, President and CEO of the Meat Institute, argues the final rule does nothing to change competition. Potts says, “These changes are simply an attempt to assert even more federal authority to regulate the equities of industry business practices, clogging the federal courts with every contract dispute.” She claims that Congress never intended to give USDA such broad-ranging authority over meat industry contracts and practices, regardless of their effect on competition. The Meat Institute previously submitted comments to USDA outlining legal precedent and congressional intent regarding the rule. *********************************************************************************** Bayer to Enhance Performance and Regain Strategic Flexibility by 2026 In a speech this week, Bayer CEO Bill Aderson addressed the short-term future of the multi-sector global company. Anderson says, “We are a high-impact, mission-driven, life-science company with three strong businesses, but we have four challenges that urgently must be addressed.” He was referring to the Pharmaceuticals pipeline, U.S. litigation, the company's high debt levels and bureaucracy that blocks progress. The company will focus on these areas for the next few years and implement its new operating model, Dynamic Shared Ownership. Bayer says the effort will help its Crop Science division strengthen its position with ten blockbusters reaching the market over the next decade. Despite gains overseas, Bayer's agricultural business saw overall sales fall by 3.7 percent last year. The decline was led by significantly lower prices for glyphosate-based products, resulting in a 26.0 percent downturn in sales of Herbicides. The rest of the portfolio saw a positive price development overall, driven by innovative products and higher commodity prices. Regarding a potential break-up of the company, Anderson says, "Our answer is 'not now' – and this shouldn't be misunderstood as 'never.'" *********************************************************************************** USDA: Expiring Estate Tax Provisions Would Increase Taxes for Farm Estates The 2017 Tax Cuts and Jobs Act significantly changed Federal individual income and estate tax policies, though some were temporary. In 2018, the legislation increased the estate tax exemption amount from $5.49 million to $11.18 million. This increase is set to expire at the end of 2025. The exclusion amount will revert in 2026 to $6.98 million per deceased person. Researchers with USDA's Economic Research Service estimate the expiring increased exemption would be $13.95 million per person at the time of the expiration. Lowering the estate tax exemption level in 2026 is estimated to increase the percentage of farm operator estates taxed from 0.3 to 1.0. Large farms would experience the largest increase in the share of estates owing estate tax, increasing from 2.8 to 7.3 percent. Total Federal estate taxes for farm estates would be expected to more than double to $1.2 billion if the provision were allowed to expire. *********************************************************************************** World Food Prize Announces Top Agri-Food Pioneers Initiative Submissions are now open for the Top Agri-food Pioneers List, a new initiative by the World Food Prize Foundation. The list will feature 38 leading innovators from across the world working to transform food systems, in honor of the organization's 38th anniversary this year. The Top Agri-food Pioneers List will spotlight pioneers of any age, background or career focus working in fields related to food or agriculture. Those selected in the final list will comprise the first cohort of TAP, building a network of trailblazers to be expanded each year to facilitate co-learning and collaboration across food systems. They will also be featured at the 2024 Borlaug Dialogue in Des Moines, Iowa. Any institution or individual may submit a name for consideration for the TAP List. Submissions will be accepted through March 8, 2024. More information and how submit names for consideration is available on the World Food Prize website, worldfoodprize.org.
| Rural Advocate News | Wednesday March 6, 2024 |
Wednesday Watch List Markets The Energy Department's weekly inventory report will be out at 9:30 a.m. CST. The Federal Reserve's Beige Book is set for release at 1 p.m. Traders continue to keep an eye on South American weather and may be a little cautious ahead of Friday's WASDE report. Weather A front and system continue to push through the East on Wednesday, bringing areas of scattered showers. Another system is moving through the West, with a portion of that system moving through the Northern Plains and Canadian Prairies with some areas of snow. The system will move fully into the Plains Wednesday night and Thursday, producing more widespread showers and thunderstorms in needed areas.
| Rural Advocate News | Tuesday March 5, 2024 |
Iowa Calls on Biden for 2024 E15 Fix The Iowa delegation of federal lawmakers is asking the Biden administration to issue a waiver authorizing E-15 sales this summer. The letter underscores the geopolitical significance of immediate, uninterrupted access to E-15 and its importance for Iowa drivers and individuals along the ethanol supply chain. Led by Senator Chuck Grassley, an Iowa Republican, the letter states, "As we expressed to Administrator Regan last week, we remain concerned that delaying implementation until 2025 will have devastating effects." The delegation previously addressed the issue with Environmental Protection Agency Administrator Michael Regan last week. In February 2024, the EPA approved a petition Iowa Governor Kim Reynolds filed in 2022 alongside seven other Midwestern states, permitting year-round, nationwide E-15 sales. However, EPA's recent authorization won't take effect until 2025. The letter continues, "We the undersigned urge you to once again issue an emergency waiver to allow for the summertime sale of E-15, extending the Reid vapor pressure (RVP) waiver from June 1 through September 15." *********************************************************************************** NCBA Calls on Congress to Adopt FY24 ‘Minibus’ The National Cattlemen's Beef Association Monday called on lawmakers to pass the minibus appropriations package announced over the weekend by congressional leadership. The bill prevents a government shutdown and supports several key cattle industry priorities. NCBA President Mark Eisele says, "While this legislation is not perfect, it advances a number of priorities important to cattle producers, including critical investments in electronic animal ID tags for producers and strengthening oversight of lab-grown protein." The Department of Agriculture is crafting a rule requiring electronic ID tags instead of existing metal tags on certain classes of cattle moving interstate. This change is designed to facilitate faster traceability in case of a foreign animal disease outbreak in the United States. If this rule is finalized, NCBA will support USDA in covering the entire cost of electronic ID tags for impacted producers. Additionally, NCBA supports greater oversight of emerging lab-grown technology. *********************************************************************************** USDA Announced Bobwhite Pilot Project, General CRP Signup The Department of Agriculture over the weekend announced the launch of a new conservation initiative – Working Lands for Wildlife's Northern Bobwhite Pilot Project, as well as the signup dates for USDA's General Enrollment signup in the Conservation Reserve Program, which opens March 4. Both conservation opportunities give producers tools to conserve wildlife habitat while achieving other conservation benefits, including sequestering carbon and improving water quality and soil health. The Working Lands for Wildlife Northern Bobwhite Pilot Project is a new effort supporting voluntary conservation of private working lands to benefit northern Bobwhite quail and East-Central grasslands conservation. This is for producers to help the bobwhite and other game and non-game species by managing their working lands for early successional habitat while meeting their lands natural resource and production goals. Producers and landowners interested in either opportunity should contact the FSA and NRCS at their local Service Center. Those interested in the Northern Bobwhite Pilot Project should contact NRCS to sign up now. *********************************************************************************** Assessment Shows Value of Soybean Oil as Low-Carbon Feedstock for Clean Fuels A recent Life Cycle Assessment conducted by Sustainable Solutions Corporation reveals a significant reduction in the carbon footprint of U.S. Soy. Created for the United Soybean Board and the National Oilseed Processors Association, the assessment highlights a notable 22 percent decrease in the carbon footprint associated with U.S. production of crude soy oil, which is a key feedstock for U.S. biodiesel, renewable diesel and sustainable aviation fuel producers. Soybean production and oil processing constitute more than 40 percent of the carbon intensity score for soy biodiesel. The improvements are expected to translate into reductions across the clean fuels industry. Clean Fuels Alliance America assisted USB and NOPA in ensuring the data collected for processors in the report aligns with data specifications for GREET, so it could be easily integrated into GREET model updates. Veronica Bradley, Environmental Scientist at Clean Fuels Alliance America, adds, “We look forward to working with Argonne National Laboratory through the data quality assessment process to update the GREET model to reflect the latest improvements in the industry.” *********************************************************************************** USDA Issues Analysis of School Breakfast Program A new analysis from USDA’s Economic Research Service shows the USDA School Breakfast Program has served about 63 billion meals since it was established in 1975. Any student in a participating school can get free or reduced-price breakfast through the program, depending on their family income as it relates to the Federal Poverty line. The number of breakfasts served increased each year from 1982 through fiscal year 2016, before plateauing at about 2.4 billion meals from 2017 through 2019. On average, 85 percent of breakfasts were served for free or at a reduced price each year during this period. The onset of the COVID-19 pandemic in March 2020 interrupted school operations, including the provision of meals, and the number of breakfasts served through the program dropped to about 1.8 billion breakfasts in 2020. The decrease reflected the use of USDA pandemic waivers, which allowed schools to serve meals through the Summer Food Service Program. *********************************************************************************** Fuel Prices See Double-Digit Increase After falling last week, the nation’s average price of gasoline climbed ten cents from a week ago, according to GasBuddy. The national average is up 22 cents from a month ago but 3.2 cents per gallon lower than a year ago. The national average diesel price fell 2.7 cents last week and stands at $4.03 per gallon—33 cents lower than one year ago. GasBuddy's Patrick De Haan says the trend is "hardly surprising for this time of year, and will likely continue as the entire nation has now made the first step toward summer gasoline.” After a weekend that saw Saudi Arabia announce an extension of their one million barrel per day production cut, oil prices were seeing slight losses, but remained near the highest level since November. The most common U.S. gas price encountered by motorists stood at $3.29 per gallon, with the most common diesel price at $3.99 per gallon.
| Rural Advocate News | Tuesday March 5, 2024 |
Tuesday Watch List Markets U.S. factory orders for January will be out at 9:00 a.m. CST, the only significant report of the day. Traders remain interested in the latest weather forecasts, the potential for more western wildfires and have an eye on Friday's WASDE report. Weather A cold front is sparking scattered showers and thunderstorms from eastern Texas to Michigan Tuesday morning. That front will continue to press eastward through the Midwest and Deep South throughout the day, bringing some needed precipitation to drier soils in some of these areas. Temperatures behind the front are cooler than out ahead of it, but are still mostly warm for early March outside of the Northwest and Canadian Prairies.
| Rural Advocate News | Monday March 4, 2024 |
Administration Misses GREET Deadline Biden administration officials announced they will miss a self-imposed deadline of March 1 to complete modifications to the GREET model for sustainable aviation fuels (SAF). The model is critically important for determining eligibility for the Inflation Reduction Act’s “40-B” SAF tax credit. Renewable Fuels Association President and CEO Geoff Cooper says while they were pleased to hear progress is being made on the modified GREET model, they are disappointed by this additional delay. “RFA is calling on the interagency Working Group to complete this process as quickly as possible while maintaining scientific integrity and honoring the commitment to incorporate a broad range of carbon reduction strategies,” he says. “To meet the Biden administration’s SAF goals, the marketplace needs certainty and clarity.” He also says investment and innovation in SAF technologies will remain frozen until the model gets finalized and additional guidance is issued. “It’s an enormous decarbonization opportunity,” he adds. ********************************************************************************** Number of U.S. Farms Falls Below Two Million The USDA says the number of U.S. farms has fallen under two million for the first time since before the Civil War. The numbers come from the 2022 Census of Agriculture. In 2022, there were 1,900,487 farms in the country, a seven percent decline from the level in the 2017 Census. A farm is defined as an establishment that produced or sold or would have sold in normal conditions, at least $1,000 in agricultural production in a year. The latest Census also reported that the total U.S. land in farms declined 2.2 percent to 880 million acres in 2022. This decline, when combined with the higher proportional decline in the number of farms, meant that the average farm size increased by five percent to 463 acres per farm. The Census of Agriculture, conducted every five years by USDA’s National Agricultural Statistics Service, includes producer responses to questions about their farming operations. *********************************************************************************** Corn Congress Wants Expanded Access to Foreign Markets Saying U.S. farmers depend on the strong demand that comes with expanded market access, the National Corn Growers Association’s Corn Congress passed a consensus statement on trade. The statement encourages federal officials to pursue trade opportunities and invest in foreign market development to ensure that the U.S. remains a global leader in corn production and trade. “Building demand for U.S. corn is a top priority for NCGA and its state affiliates,” says NCGA President Harold Wolle. “International markets are crucial to the overall demand for U.S. corn, and actions restricting access to foreign markets will hurt both U.S. farmers and the broader U.S. economy.” The consensus statement says, “Whereas market access is critical for U.S. farmers to be successful and support the nation’s economy, we support improved market access, including the reduction of tariff and non-tariff barriers, so U.S. corn growers have many opportunities to increase demand from foreign trading partners.” *********************************************************************************** Export Sales Rise USDA data shows grain and bean sales to overseas buyers rose week-to-week. Export sales of corn in the week ending on February 22 were reported at 1.08 million metric tons, up 32 percent from the previous week but down five percent from the prior four-week average. The agency says Mexico was the big buyer at 423,700 tons. Exports for the week came in at 1.22 million tons, up 19 percent week-to-week. Wheat sales jumped 40 percent week-to-week and two percent above the average to 327,300 metric tons. Japan took in 88,700 tons. Wheat exports for the week came in at 538,700 tons, up 44 percent from the prior week. Soybean sales totaled 159,700 metric tons, up from a marketing year low of 55,900 tons during the previous week. That’s still down 30 percent from the prior four-week average. China bought 154,800 tons. Exports dropped eight percent to 1.1 million tons. *********************************************************************************** Good News for U.S. Sugar Exports U.S. sugar exports for fiscal year 2024 are forecast to be the largest they’ve been in six years, rising to an estimated 160,000 short tons raw value (STRV) in the February WASDE report. About 88 percent of that, or 140,800 short tons of that total volume, is expected to go to Mexico, where sugar exports had fallen to a 15-year low. The Economic Research Service says this forecast will put U.S. sugar exports to Mexico on par with those from 2008-2013 when the North American Free Trade Agreement was active. Under NAFTA, Mexico could import U.S. sugar without tariffs or quotas, and U.S. exports averaged 167,000 STRV. After falling below 50,000 STRV on average, the U.S. increased its sugar exports to Mexico in the last two years as U.S. domestic beet and cane sugar production rose and Mexico experienced back-to-back years of lower production related to drought and reduced fertilizer use. *********************************************************************************** ASPCA Unhappy with Vilsack’s Comments on Prop 12 The American Society for the Prevention of Cruelty to Animals was unhappy with remarks by Agriculture Secretary Tom Vilsack on California’s Prop 12. ASPCA says Vilsack misrepresented the impacts of California’s Proposition 12 during a Senate Ag Committee hearing. “It’s alarming to see Secretary Vilsack double down on his inaccurate comments about Proposition 12, furthering industrial animal agriculture’s false narrative about the impact of basic laws that spare animals from cruel confinement in cages and crates,” says Kara Shannon, director of farm animal welfare policy for the ASPCA. “Fifteen states have implemented bans on the extreme confinement of farm animals, representing the will of millions of voters.” The group also says Senator Cory Booker’s line of questioning during the hearing aptly pointed out this isn’t just an animal welfare issue. It’s also a democracy issue. “We strongly condemn the Secretary’s comments suggesting Congress attempt to undo these critical laws,” the ASPCA says.
| Rural Advocate News | Monday March 4, 2024 |
Monday Watch List Markets Weather in South America will again be watched closely by traders. At 10 a.m. we will get Grain Inspections. Weather A cold front that moved into the middle of the country on Sunday will come alive with showers and thunderstorms across the Mississippi Valley on Monday. Temperatures behind the front are cooler, but still warm for early March outside of the Canadian Prairies. Breezy but not strong winds will keep firefighters battling wildfires in the southwestern Plains.
| Rural Advocate News | Friday March 1, 2024 |
NPPC Applauds Line Speed Expansion The National Pork Producers Council commended the USDA’s Food Safety and Inspection Service for extending the New Swine Inspection System line speed trials through January 15, 2025. Processing facilities will enroll in a modified time-limited trial, which includes a study to evaluate the impact of increased line speeds on worker safety. “We appreciate USDA and FSIS for listening to the pork industry and taking another step toward making increased line speeds permanent,” says NPPC President Scott Hays. “These actions give pork producers more certainty in an uncertain time.” NPPC has advocated for increased line speeds since 2019, and in 2021, FSIS permitted increased line speeds at six pork packing plants while also gathering data to evaluate potential worker impacts. Industry economists say producers could have incurred an additional loss of almost $10 a head early this year without the increase in line speeds and the resulting decrease in processing capacity. *********************************************************************************** Catastrophic Losses Ahead After Texas Wildfires Texas Ag Commissioner Sid Miller announced his agency’s commitment to providing support to the state’s producers as they deal with the aftermath of devastating wildfires in the Texas Panhandle. The Smokehouse Creek Fire has burned through almost 1,700 square miles of land, making it the largest on record in Texas going back to 1988. Seven grain and seed operations have reported total losses. “The fires not only threaten lives and property but will also have a substantial impact on our agriculture industry,” Miller says. “Over 85 percent of the state’s cattle population is located on ranches in the Panhandle.” He also says there are millions of cattle in the region, with some towns made up of more cattle than people. As Governor Greg Abbott declares a disaster in 60 counties, the TDA’s State of Texas Agriculture Relief (STAR) Fund is calling for donations to assist Texas Panhandle farmers and ranchers. *********************************************************************************** New Resource for Maximizing Cattle Profitability A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps producers maximize profitability from their culling decisions. The resource is called “Right Way, Right Time – A Guide to Cull Cattle Management” and is now available at ncba.org. With effective planning, cull cattle can be a significant source of revenue and should not be overlooked. Cull cattle are market cattle. The document addresses key problem areas, provides strategies for making timely culling decisions to prioritize animal welfare, and is designed to help producers capture more value through effective cull cattle management. “Cull animals can contribute significantly to the profitability of the ranch,” says Dr. Trey Patterson, president of the Padlock Ranch Company. “We spend extensive time and money adding replacement cattle to our herd, so it’s imperative that we capture good value for cull cattle to offset the other expenses.” For more information or to access the resource online, visit ncba.org/producers. *********************************************************************************** FFA Next Gen Conference in March The National FFA Organization developed the Next Gen Conference to give students from around the country an opportunity to explore a variety of career paths before high school graduation. Next Gen Conferences go in-depth in a different subset of the more than 350 careers in agriculture each year. This year’s Next Gen Conference is March 5-8 in Dallas-Forth Worth, Texas. The Next Gen Conference: Agricultural Communications will engage high school students in hands-on sessions, round tables, and tours to explore emerging trends, issues, and opportunities in the field of agricultural communications. During the conference, students will also develop a road map that will serve as a blueprint to guide them in taking their next steps after high school graduation. “This conference will help us cultivate future leaders in the communications industry through a week of experiential learning, relevant education, and networking,” says Ashli Weinrich, program specialist for the National FFA Organization. *********************************************************************************** Mentorship Program for Women in Food and Agriculture Alltech is proud to continue partnering with the “Women in Food & Agriculture Program.” Applications are open for new mentors of either gender and for female mentees from across the global food and agriculture sector. Now in its fourth year, the free-to-join program is dedicated to supporting women across the global food and agriculture sector by providing invaluable mentorship opportunities. It’s become a beacon of support for women seeking guidance, advice, and networking opportunities in their careers. Surveys suggest one of the biggest hurdles to success for women in the global agri-food industry is a lack of mentorship opportunities. WFA matches applicants based on their preferences, which can include mentor gender, areas of expertise, language, and industry sector, and offers opportunities for women in food and agriculture to develop meaningful industry connections. To date, the program has facilitated 562 pairings, connecting mentees with experienced mentors. For more information go to wfa-initiative.com. *********************************************************************************** U.S., Mozambique Sign MOU on Ethanol The U.S. Grains Council convened a high-level meeting between government officials, industry professionals, and other stakeholders to discuss Mozambique’s clean energy goals in cooking and transportation. Deputy USDA Secretary Xochitl (so-CHEEL) Torres Small looked on as the USGC, Pivot Clean Energy, and the Mozambique Ministry of Mineral Resources and Energy signed a memorandum of understanding. It establishes a cooperative partnership to exchange technical expertise and best practices related to the biofuels industry and clean energy policy development. Small says using biofuels for cooking is one of the many examples of how agriculture provides real solutions to everyday challenges. “Today’s conversation helps families in Mozambique use a healthier cooking fuel, which in turn provides cleaner air for everyone,” she says. “In pursuing ethanol burning stoves for household cooking that produce no soot or smoke, users can limit air-borne health risks and air pollution.” Biofuel blending reforms lessen Mozambique’s reliance on fuel imports.
| Rural Advocate News | Friday March 1, 2024 |
Friday Watch List Markets The U.S. Treasury Department is expected to make an announcement Friday, regarding specifications for Sustainable Aviation Fuels that may have a big impact on the future demand for corn and soybeans. Manufacturing indices will be reported overnight from around the world and be joined by ISM's index for the U.S. at 9 a.m. CST. The University of Michigan's index of consumer sentiment will be out at 9 a.m. Weather While a few snow showers will move across the Eastern Midwest Friday morning, the Southeast and Tennessee Valley will continue to see scattered rain showers throughout the day. Rain showers will eventually work into the Ohio Valley by late Friday afternoon into the evening.
| Rural Advocate News | Thursday February 29, 2024 |
Stabenow: No New Farm Bill Without SNAP, Climate Funds For the first time, Senate Ag Committee Chair Debbie Stabenow says she’ll push a new farm bill further into the future rather than strike a deal with Republicans on SNAP and climate spending changes. The Fence Post says she won’t agree to limit any updates to the Supplemental Nutrition Assistance Program or cut any climate-smart conservation money in the Inflation Reduction Act. “I’m not going to do it,” she says. “If that means we continue the policies of the 2018 Farm Bill, which were pretty good if I do say so myself, then that’s okay.” Stabenow sat next to Ag Secretary Tom Vilsack during an event at the White House this week, and he said, “You’re tough. That’s great.” Stabenow has said privately for months that her legacy depends on protecting climate funding as well as not cutting anti-hunger programs. The current farm bill authorization expires at the end of September. *********************************************************************************** Bill Further Expands Future Biofuel Usage Senators Sherrod Brown (D-OH) and Pete Ricketts (R-NE) introduced the bipartisan “Renewable Fuels for Ocean-Going Vessels Act.” It will help open new markets for U.S. farmers by encouraging the use of biofuels using homegrown farm products for ships and ocean-going vessels. It will specifically expand markets for American-made biofuels by ensuring that renewable fuels used in ocean-going vessels would be eligible for a renewable fuel credit available for other biofuels. The legislation preserves Renewable Identification Numbers (RINs) under the Renewable Fuel Standard program when the fuel is used in oceangoing vessels. The RFS currently excludes “fuels used in ocean-going vessels” from the definition of transportation fuels and from refiners’ and blenders’ obligations. Refiners and blenders are required to retire RINs from any biodiesel and renewable diesel used in vessels with Class 3 engines operating in international waters, including the Great Lakes. The bill is widely supported by multiple agricultural groups. *********************************************************************************** Senators Take Action Against Paraguayan Beef Imports Senators Mike Rounds (R-SD) and Jon Tester (D-MT) filed a resolution against the Biden administration’s decision to lift a long-standing ban on beef imports from Paraguay. A Congressional Review Act resolution is an oversight tool Congress may use to overturn final rules with a simple majority vote. “Our farmers and ranchers work tirelessly to produce the safest, highest quality, and most affordable beef in the world,” Rounds says. “On the other hand, Paraguay has historically struggled to contain outbreaks of foot and mouth disease.” Tester and Rounds say American consumers should be able to confidently feed their families beef that they know has met the rigorous standards required in the United States. “I’m pleased to be filing this CRA with Senator Tester to overturn this rule that harms American producers and consumers,” Rounds adds. Tester says, “Cutting corners to resume imports from Paraguay is bad news for producers and consumers.” *********************************************************************************** Purdue: No Increase in Dust Explosions in 2023 A new report from Purdue University says that nationwide grain dust explosions totaled nine incidents in the United States during 2023, resulting in 12 injuries but no fatalities. “Dust explosions are one of the most serious hazards that occur in the grain industry,” says study author Kingsly Ambrose of Purdue University. “The explosions can also lead to significant financial and personal losses due to downtime, repair, injuries, and fatalities.” Last year’s nine incidents were no increase from the nine incidents reported in 2022. The ten-year average of 8.4 explosions remains relatively unchanged. Ambrose says all the big explosions occurred in the Midwest, with most of them taking place in the corn handling or processing industry. The probable ignition sources were identified in two of the cases as fire, with another due to an equipment malfunction, and the others were caused by unknown sources. “Education is the key to prevention,” Ambrose adds. *********************************************************************************** USDA Webinar on Contracting and Tournaments Final Rule The USDA’s Agricultural Marketing Service will host a webinar on March 7 at noon, eastern time, for U.S. poultry growers. The webinar will allow the agency to share information regarding the “Transparency in Poultry Grower Contracting and Tournaments Final Rule.” Attendees may submit questions in advance at the usda.gov website. Questions will also be taken during the webinar. USDA published the final rule in the Federal Register on November 28, 2023, and it became effective on February 12, 2024. The rule requires Live Poultry Dealers, which are typically large processing companies, to provide poultry growers with whom they contract to raise birds with key information about the terms of their agreements. It also requires additional disclosures by live poultry dealers engaged in the production of broilers who use poultry grower ranking systems to determine settlement payments for broiler growers. More information can be found on the AMS website at ams.usda.gov. *********************************************************************************** Iowa Farmland Sells for a Near-Record Amount Not one but two tracts of farmland in Sioux County, Iowa, sold for a near-record $29,600 per acre in a public auction this week. In November 2022, a sale of 73.19 acres in the same county sold for the current state record of $30,000 per acre. A spokesman for Zomer Company Realty and Auction confirmed the Ken and LaDonna Huisman farmland sale totaled 117.41 acres on February 27. The first tract of land was made up of 40 acres and featured half-mile-long rows. With a road and ditch on only one side of the field, 98.7 percent of the tract is tillable. Tract number two is 77.41 acres that are also bordered by one road and is 98.7 percent tillable with half-mile-long rows. Both tracts are subject to a signed easement with the Summit Carbon Solutions pipeline project. The buyer will receive the crop damage payments from Summit at closing.
| Rural Advocate News | Thursday February 29, 2024 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CST, the same time as weekly U.S. jobless claims, the PCE inflation index, U.S. personal incomes and an update of the U.S. Drought Monitor. The Energy Department's weekly natural gas storage report will be out at 9:30 a.m. Weather A disturbance will provide isolated to scattered rain and snow showers to the Southern Plains today, which could help reduce the wildfire risk across the area. However, portions of Iowa, eastern Nebraska, and northern Kansas will see dry and breezy conditions today, promoting a higher risk for wildfires.
| Rural Advocate News | Wednesday February 28, 2024 |
Grassley, Colleagues, Urge Swift E15 Waiver for 2024 Senator Chuck Grassley led an Iowa delegation of lawmakers in a letter urging the Environmental Protection Agency to allow for summertime E15 sales in 2024. Last week, the EPA finalized a rule to approve year-round E15 sales, but delayed implementation until 2025. The rule allows states to use the same volatility limits for E15 and E10 and was in response to a petition by governors of eight midwestern states seeking the year-round availability of E15. The petition includes Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. Grassley and the Iowa delegation contend the delay "will have devastating effects on biofuels producers, farmers, and families across the country.” The letter states, “We request, once again, that the EPA immediately implement its rule to ensure E15 is available year-round no later than March 31, 2024." Representatives Zack Nunn, Randy Feenstra, Ashley Hinton, and Marionette Miller-Meeks signed the letter, along with Senators Grassley and Joni Ernst. *********************************************************************************** USDA Announces Progress on Newly Authorized Climate Programs The Department of Agriculture Tuesday published the Intent to Establish the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program report. Authorized under the Growing Climate Solutions Act, the report explains how the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program will facilitate farmer, rancher, and private forest landowner participation in voluntary carbon markets. Agriculture Secretary Tom Vilsack says, “This new program will provide resources for producers and landowners, helping them pursue opportunities to generate revenue while benefiting the environment.” The report justifies the Secretary's intent to establish the program following an earlier publication, which found that voluntary carbon markets offer a promising tool to achieve greenhouse gas reductions from the agriculture and forest sectors and support producer livelihoods. USDA will work towards formal establishment of the program in 2024. As a first step, USDA will soon solicit information on protocols to be evaluated for inclusion in the list to be published as part of the program. *********************************************************************************** Ag Accounted for 10% of 2021 U.S. GHG Emissions Farming activities in the United States accounted for 10.6 percent of U.S. greenhouse gas emissions in 2021, according to USDA’s Economic Research Service. New data released this week shows that from 2020 to 2021, agricultural greenhouse gas emissions remained nearly constant but decreased from 11.1 percent to 10.6 percent as a share of total U.S. emissions because of changes in other industries. The Environmental Protection Agency estimated that in 2021, agriculture emitted 312.6 million metric tons as nitrous oxide, 278.4 million metric tons as methane, 44.7 million metric tons as on-farm carbon dioxide, and 35.7 million metric tons emitted indirectly through the electricity that the agricultural sector uses. Of the common economic sectors in the United States, industry accounted for the largest portion of total greenhouse gas emissions at 30.1 percent, followed by transportation, commercial, residential and agriculture. Total U.S. greenhouse gas emissions in 2021 were 2.3 percent lower than in 1990. *********************************************************************************** RMA Expands Insurance Option for Nursery Growers USDA Risk Management Agency is expanding crop insurance tailored for nursery producers to all counties in all states. Nursery Value Select is a pilot program that enables nursery producers to select the dollar amount of coverage that best fits their risk management needs. Its expansion is part of USDA’s Risk Management Agency efforts to provide insurance options for a broader group of producers, including specialty crop producers. RMA Administrator Marcia Bunger says, "This insurance option meets a critical need of American nursery producers." Nursery Value Select provides similar but improved coverage to the longstanding Nursery Field Grown and Container program. The program also covers field-grown and containerized nursery plants and offers coverage levels between catastrophic and 75 percent. Before the expansion, the program was only available in select counties in nine states. Beginning with the 2025 crop year, Nursery Value Select will be available in all counties in all states. *********************************************************************************** Gooden Confirmed as Rural Development Undersecretary The Senate Tuesday confirmed Dr. Basil Gooden as U.S. Department of Agriculture (USDA) Under Secretary for Rural Development. Dr. Gooden has served as Director of State Operations for Rural Development since July 2021, in which role he has led and supported USDA's team of 47 Rural Development State Directors who extend USDA's state-level leadership and help ensure the department's investments reach all rural communities. Agriculture Secretary Tom Vilsack says, "Dr. Gooden is a true asset at the People's Department, and I look forward to continuing our work advancing and improving policies that benefit agriculture and rural America." House Agriculture Ranking Member David Scott added, "Dr. Gooden's extensive experience touches on many issues important to rural communities, including affordable housing, wealth development in distressed communities, and improving infrastructure." Gooden will fill the undersecretary position left vacant by Xochitl Torres Small, who was confirmed in July 2023 as Deputy Secretary of Agriculture. *********************************************************************************** Indigo Ag Announces Record Carbon Crop Indigo Ag this week announced the successful completion of its third carbon crop. With more than 163,000 carbon credits produced, Indigo is the only company to complete three carbon harvests at scale, and the program continues to show growth with year-over-year increases in the number of farmers paid, fields filed, and credits produced. Since its inception in 2019, farmers participating in Indigo Ag's carbon program have sequestered or abated the equivalent of nearly 300,000 metric tons of carbon dioxide. Indigo Ag CEO Dean Banks says, "Our record breaking third carbon crop reinforces that farmers can earn money and have a real and measurable impact leveraging agricultural soil as one of the world's largest carbon sinks.” Indigo Ag's carbon credits are verified and issued by the Climate Action Reserve. To date, farmers in Indigo Ag's sustainability programs have earned more than $12 million. Farmers are scheduled to be paid for the third carbon crop in March 2024.
| Rural Advocate News | Wednesday February 28, 2024 |
Wednesday Watch List Markets The first revision of Q4 U.S. GDP is set for 7:30 a.m. CST Wednesday. The Energy Department's weekly inventory report follows at 9:30 a.m. and includes weekly ethanol production. Traders remain interested in South American weather and any surprise that may pop up. Weather A strong cold front continues its trek across the U.S. on Wednesday, moving through the East Coast by Wednesday evening. Areas of showers and thunderstorms follow the front, and some snow will mix in as well. Temperatures are dropping rapidly behind the front and have become very cold across the Plains and Upper Midwest after the frontal passage Tuesday. Strong winds continue to follow the front as well. Even though it is cold behind the front, it will not last long, rising in the Northern Plains Wednesday afternoon and elsewhere Thursday and Friday.
| Rural Advocate News | Tuesday February 27, 2024 |
Funding Announced for Renewable Tech in Ag The Department of Agriculture and the Energy Department Monday launched a new initiative to help farmers cut costs and increase income using underutilized renewable technologies. Through the Rural and Agricultural Income & Savings from Renewable Energy initiative, USDA is setting an initial goal of helping 400 individual farmers deploy smaller-scale wind projects using USDA’s Rural Energy for America Program. This goal is only possible because of President Biden’s Inflation Reduction Act which provided more than $144 million in grant funding for underutilized technologies through the REAP program. Agriculture Secretary Tom Vilsack says, “These investments will create long-lasting economic benefits for their families, businesses and communities for years to come.” Additionally, the Energy Department announced $4 million in related funding, including $2.5 million to support distributed wind technologies for the agricultural sector, and $1.5 million to support outreach and the identification and development of new business models for farmers to save money and earn income deploying these technologies. *********************************************************************************** Northey Honored by Agribusiness Association of Iowa The Agribusiness Association of Iowa Foundation Monday announced that its building will be named after Bill Northey and simply called “The Northey Building.” Foundation Board Chair Mark White says, “Just as another giant in Iowa agriculture, Henry Wallace, has a state ag building named after him, the Foundation board of directors felt that naming our building after Bill will ensure that he will never be forgotten.” Northey served as CEO of the Agribusiness Association of Iowa at the time of his death earlier this month. Northey previously served as the nation's first Undersecretary for Farm Production and Conservation at USDA, and as Secretary of Agriculture for Iowa. Further, A "Northey Memorial Fund" has been established at the Agribusiness Association of Iowa Foundation. The Agribusiness Association of Iowa Foundation is a nonprofit organization that promotes research projects, member education, stewardship and scholarships that benefit Agribusiness Association of Iowa members and their families. *********************************************************************************** Nature Connects Us Campaign Launches The National Forest Foundation and USDA’s Forest Service Monday announced the launch of “Nature Connects Us.” The outreach campaign sparks awakening and strengthening of all peoples’ connection to national forests and grasslands. The campaign is grounded in honoring ancestral tribal homelands through respectful and mindful visitor experiences and was born out of the need to grow and understand the respect that public lands require on a deeper level. NFF CEO Mary Mitsos says, “We aim to welcome all peoples to enjoy the outdoors in a manner that amplifies who they are as an individual and members of a larger community.” The outreach campaign is the largest and most comprehensive outreach campaign that the Forest Service has collaborated on with the NFF throughout their partnership over the past several decades. The National Forest Foundation is the congressionally-chartered nonprofit working to improve and restore the health of the 193-million-acre National Forest System. *********************************************************************************** United States Cattle on Feed Up Slightly USDA ended last week with the monthly Cattle on Feed Report showing slightly higher inventories on February 1. Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.8 million. The inventory was slightly above 2023, with placements in feedlots at 1.79 million head, seven percent below 2023, and net placements at 1.71 million head. Marketings of fed cattle during January totaled 1.84 million head, slightly below 2023. Cattle on Feed and Annual Size Group Estimates Cattle and calves on feed for slaughter market in the United States for feedlots with capacity of 1,000 or more head represented 82.7 percent of all cattle and calves on feed in the United States on January 1, 2024. This is comparable to the 82.6 percent on January 1, 2023. Marketings of fed cattle for feedlots with capacity of 1,000 or more head during 2023 represented 87.3 percent, up slightly from 87.2 percent during 2022. *********************************************************************************** Nearly 20% of Shoppers Purchase Groceries Online Data from USDA’s Economic Research Service shows that nearly 20 percent of shoppers purchased groceries online in 2022, the latest dataset available. However, the frequency of online shopping varied. At the time of the survey, among those who bought groceries online in the past month in 2022, 30.2 percent did so once, 25.1 percent made two online grocery purchases, and 44.7 percent purchased groceries online three or more times. Time constraints were the main reason people bought groceries online, while the main reason for not shopping online for groceries was that people like being able to see and touch products in person, according to the survey. ERS collected the data through the ERS-developed Eating and Health Module of the U.S. Department of Labor Bureau of Labor Statistics’ American Time Use Survey. In 2022, the Eating and Health Module captured for the first time nationally representative data concerning the prevalence and frequency of U.S. residents who report shopping for groceries online. *********************************************************************************** Fuel Price Increase Pauses The national average gas price declined last week for the first time in more than a month. The average gas price stands at $3.24 per gallon, down 1.9 cents from a week ago. The national average is up 13.3 cents from a month ago but 9.2 cents per gallon lower than a year ago. Meanwhile, the national average diesel price fell 2.6 cents last week and stands at $4.06 per gallon—33 cents lower than one year ago. However, GasBuddy's Patrick De Haan cautions, "While the pause has certainly been nice, this is more like a rain delay than it is a 7th-inning stretch." De Haan says all eyes are on refiners as utilization remained seasonally weak, around 80 percent of capacity, meaning there’s less gasoline and diesel being produced. U.S. retail gasoline demand increased 2.2 percent for the week, as oil prices hovered around $80 per barrel.
| Rural Advocate News | Tuesday February 27, 2024 |
Tuesday Watch List Markets A report on U.S. durable goods orders for January will be out at 7:30 a.m. CST, followed by a report on consumer confidence at 9 a.m. Traders continue to keep close watch over South American weather forecasts and have an interest in news from the Middle East and Red Sea. Weather A strong cold front is found in the Northern Plains early Tuesday with a band of heavy snow across North Dakota into northern Minnesota. That front will race through much of the Plains and Midwest through Tuesday with strong winds, potential severe storms in the eastern Midwest, areas of light snow, and a sharp drop in temperatures from the records seen on Monday.
| Rural Advocate News | Monday February 26, 2024 |
More Reaction to EPA’s E15 Decision The Environmental Protection Agency granted the request from eight Midwestern states to sell year-round E15 beginning in 2025. Growth Energy CEO Emily Skor says it’s great news but notes, “Drivers will need a solution for this summer to minimize disruptions and make sure they have continued access to E15.” The National Corn Growers Association is also glad to hear about the decision because it provides more certainty. “However, since it doesn’t begin until the summer of 2025, we are concerned about the implications for growers and consumers this summer,” says NCGA President Harold Wolle. The American Coalition for Ethanol says the decision is “better late than never” but also says the EPA had a legal responsibility to approve E15 in those states more than a year ago. Iowa Senator Chuck Grassley says the EPA was correct in unleashing year-round E15 but added a “few unnecessary strings” in delaying it until 2025. ********************************************************************************** Senators Want a Strong Packers and Stockyards Act Montana Democratic Senator Jon Tester and Iowa Republican Chuck Grassley wrote a letter asking colleagues to help assure the strong enforcement of the Packers and Stockyards Act. They’re asking other senators to oppose any policy rider in the 2024 Ag Appropriations Bill that would prevent the USDA from enforcing the Act to hold multi-national food manufacturers accountable. “Four companies control over 80 percent of domestic beef processing, 60 percent of hog processing, and 50 percent of domestic poultry processing,” their letter says. “This level of concentration is bad for consumers and family farmers but good for the giant meat packers.” They point out that the companies have reported record profits in the last few years while farmers and ranchers struggle to make ends meet and consumers are paying too much for proteins at the grocery store. “Congress must reject any rider blocking USDA from implementing bipartisan reforms,” the letter says. *********************************************************************************** Brazil, Argentina Crop Production Estimates Drop Soybean production estimates for Argentina and Brazil, along with corn production estimates for Argentina, were lowered by agribusiness consultancy Agroconsult and the Rosario Grain Exchange. Brazil’s 2023-2024 soybean crop estimate was cut to 152.2 million metric tons from 153.8 million. Agroconsult says adverse weather in key production states is a big reason for the drop. Argentina’s Rosario Grains Exchange cut its estimates for the country’s 2023-2024 soybean and corn harvests to 49.5 million and 57 million metric tons. The cut comes after a heat wave in late January and early February. The exchange has previously calculated the soybean harvest at 52 million tons and the corn harvest at 59 million tons. Agroconsult says about 40 percent of the crops were affected by high temperatures and low rainfall in Mato Grosso, Brazil’s biggest farm state. Despite higher-than-usual temperatures that started in mid-January, Argentina’s corn harvest will hit a record level this season. *********************************************************************************** Report Gives a Snapshot of 2023’s U.S. Lamb Market Last year saw the smallest lamb crop on record with just 3.03 million head, but there were also some bright spots related to lamb imports and pricing. That’s according to the 2023 Sheep Industry Review, a checkoff-funded report commissioned by the American Lamb Board and compiled by the American Sheep Industry Association. “Last year saw a decline in inventory at all levels,” says ALB chair Jeff Ebert. “However, producers did feel a bit of relief with a significant decrease in imported lamb and mutton, improved drought conditions in most areas, a slight decline in production costs, and relatively high slaughter and retail prices.” Breeding sheep declined by two percent to 3.67 million head, market lambs were down 24,000 head to 1.28 million head, and the total lamb crop was down to 3.03 million head, the smallest on record. Feedlot supplies were also down last year because of smaller lamb crops. *********************************************************************************** Farmers Ask for Stability in Milk Prices The American Farm Bureau and National Farmers Union sent a letter to USDA asking for stability in Class 1 milk prices. The letter asks Ag Secretary Tom Vilsack to issue an interim final decision to return the Class 1 mover formula to the “higher-of” the Class 3 or Class 4 calculations as it was before the 2018 farm bill. The letter states,” Dairy farmers remain stuck with the current pricing regulations until USDA publishes a final rule. Current market dynamics underscore the need for an expedited return to the ‘higher-of’ Class 1 mover.” The current Class 1 mover was a well-intentioned but misguided policy that has reduced dairy farmer income. Emergency implementation of the higher-of Class 1 mover formula will staunch persistent losses associated with a policy that has left dairy farmers struggling to make ends meet. The current formula was based on a quick decision and not demonstrated need. *********************************************************************************** USDA Equity Commission Issues Final Report The USDA held its inaugural National Equity Summit to celebrate the work of USDA’s Equity Commission and released the report “A New Path Forward.” The report provides an overview of the implementation of the recommendations contained in the Equity Commission’s Interim Report. “USDA has worked to take significant and meaningful actions to address issues still being felt as a result of a system that hasn’t been equitable for generations and ensures that the promise of America can be achieved for every community across the country,” says Ag Secretary Tom Vilsack. Deputy Secretary Xochitl (so-CHEEL) Torres Small says it’s never easy to look at mistakes head-on and recognize where the agency has missed the mark. Since its launch in February 2022, the Equity Commission served as a key pillar of the Department’s efforts to advance equity. The Commission’s report includes 66 recommendations to support institutional change at USDA within multiple areas.
| Rural Advocate News | Monday February 26, 2024 |
Monday Watch List Markets Back from the weekend, traders will continue to pay close attention to South American weather forecasts and any news from around the world, especially the Middle East. New home sales for January will be out at 9 a.m. CST, followed by USDA's weekly export inspections at 10 a.m. CST. Weather Temperatures are rising well above normal and could break some records in spots here on Monday east of the Rockies. But a storm in the Canadian Prairies will push a cold front through the Pacific Northwest and Northern Plains that will sweep across the country the next couple of days. That will produce some areas of showers, including snow in the Northern Plains and Upper Midwest, strong winds, potential for severe weather, and a sharp drop in temperatures.
| Rural Advocate News | Friday February 23, 2024 |
EPA Makes Decision on Summertime E15 The Environmental Protection Agency approved the long-delayed petitions from eight Midwest governors to allow summertime sales of E15 in these states. Geoff Cooper, president and CEO of the Renewable Fuels Association, says it’s a double-edged sword. “The EPA finally allows retailers in these eight states to sell E15 year-round,” he says. “But it also delays the rule’s implementation until 2025.” That delay creates considerable uncertainty and confusion about the availability of lower-cost, lower-carbon E15 this coming summer. “It’s helpful to have certainty about 2025, but what happens this summer?” Cooper asked. ”The administration missed its statutory deadline to finalize the governors’ petition by more than 500 days, and now it claims there isn’t enough time to implement the rule in time for summer 2024.” He doesn’t understand why ethanol producers, fuel retailers, consumers, and farmers should be penalized for EPA’s foot-dragging. “We want uninterrupted access this year,” he adds. ********************************************************************************** Food Continues to Get More Expensive Eating continues to cost Americans more money. That’s even as overall inflation has backed off from the high pace of 2022 and 2023. Restaurant prices were up 5.1 percent last month compared to January 2023. U.S. Labor Department data shows that grocery store costs increased 1.2 percent during the same period. Relief isn’t on the immediate horizon as restaurant and food company executives continue wrestling with higher labor costs and more expensive ingredients like cocoa. “If you look historically at the periods following inflation, there’s nothing that says food prices will go back down,” says Steve Cahillane of snack giant Kellanova. “They tend to be sticky.” In 1991, government data shows consumers had spent over 11 percent of their disposable personal income on food. At the time, households were still dealing with steep food price increases following an inflationary period during the 1970s. Thirty years later, food spending is there again. *********************************************************************************** Brazil Soybean Exports Double U.S. Shipments Brazil’s 2023 soybean exports reached a record 3.74 billion bushels, 29 percent higher than the previous year as Brazilian production hit record levels. Meanwhile, U.S. shipments dropped 14 percent to 1.78 billion bushels in the same period. The two countries are major competitors and together ship over 80 percent of global soybean exports. Historically, the U.S. was the world’s largest soybean exporter. Brazil surpassed the U.S. in soybean shipments for the first time in 2013. The University of Illinois FarmDoc website says over the last 20 years, Brazil’s soybean exports jumped 431 percent, with the jump occurring mainly in the most recent decade. Brazil exports up to 60 percent of its domestic soybean production. During the past two decades, America’s soybean exports have increased 94 percent. U.S. soybean exports have plateaued since 2016, with an average annual volume of 1.993 billion bushels. The U.S. exports 49 percent of its soybeans. *********************************************************************************** National FFA Officers Head Overseas The 2023-2024 National FFA Officer Team recently took a trip overseas to Japan, where they participated in an international program in conjunction with the Future Farmers of Japan. The trip was made to strengthen a partnership that began in 1950. This is the first time the national officer team has made the trip since COVID began in 2020. The officers spent six days in Japan and took part in several activities, including a briefing with Senior Agriculture Attaché Mark Wallace at the U.S. Embassy in Tokyo. They also met with FFJ students at high schools in Tokyo and Osaka (oh-SAH-ka). “It was so impactful to see how different, yet how similar, the world operates,” says National FFA Eastern Vice President Morgan Anderson of Ohio. “Culturally, the world is diverse, but one common factor that unites all of us is agriculture.” She added that we’re all working to feed the world. *********************************************************************************** Waste in EPA Environmental Justice Grant Spending Iowa Republican Senator Chuck Grassley says millions of taxpayer dollars funneled through the Environmental Protection Agency’s grant programs weren’t used correctly. While the funds were used to cover recipient organizations’ overhead costs and operating expenses, they didn’t produce tangible results demonstrating the efficacy of the environmental justice program. Records and receipt tracking expenditures released this week show a vast portion of the $4.3 million allocated to the environmental justice program was spent by grant recipients on internal and superfluous purposes, including funding employees’ salaries, covering benefits, and even paying for vacation expenses. “Climate change poses real challenges, but the EPA’s efforts to address climate issues through its 2021 environmental justice program don’t pass the smell test,” says Grassley. “Having seen all this laid bare, it’s difficult to imagine how any taxpayer would want their hard-earned money invested in this program instead of putting those funds back in their own pockets.” *********************************************************************************** Grocery Groups Oppose Purchase Restrictions in SNAP The National Grocers Association and independent grocers across the U.S. sent a letter to Congress expressing opposition to an effort to limit purchases under the SNAP Program. The NGA says the Fiscal Year 2024 House Ag Appropriations Bill contains two provisions it believes would undermine SNAP. One is the creation of a pilot program to catalog and restrict SNAP purchases, and the collection of SNAP purchasing data with the aim of restricting SNAP purchases in the future. Almost 2,500 NGA members from across the country and in every Congressional district signed the letter. “The dietary needs of the SNAP population are diverse, and no one diet would be appropriate for all participants,” the letter says. The grocers also say the proposed provisions and NGA’s response come at a time of greater food insecurity for Americans. A recent study says 36 percent of U.S. families have recently skipped meals due to financial reasons.
| Rural Advocate News | Friday February 23, 2024 |
Friday Watch List Markets Traders continue to watch South American weather reports for any hints of support in corn and soybean prices. USDA's weekly export sales will be out at 7:30 a.m. CST. Cattle on-feed and monthly cold storage will both be out at 2 p.m. Weather Showers from a warm system continue in the Southeast on Friday. A cold front will drop through the Great Lakes in association with a weak clipper as well. Some limited showers will develop over the eastern Midwest later Friday into Saturday. That may include some snow, but amounts are expected to be very light. Temperatures will briefly fall behind this front, but only for a day as they rise again Saturday and continue to be very warm going into next week across most of the country.
| Rural Advocate News | Thursday February 22, 2024 |
USDA: Rural Employment Returns to Pre-COVID Levels USDA’s Economic Research Service is highlighting new data that shows rural employment levels are back to pre-COVID levels. The COVID-19 pandemic affected employment in rural and urban areas differently. Before the pandemic, employment growth was higher, and unemployment rates were slightly lower in urban areas. However, the trends reversed during the pandemic. In the second quarter of 2020, urban employment fell to 88 percent of pre-pandemic employment levels, while rural employment fell to 90 percent of pre-pandemic levels. Unemployment during the pandemic reached a high of 13.3 percent in urban areas and 11.4 percent in rural areas, compared with pre-pandemic rates of 3.8 and 4.2 percent, respectively. Rural and urban employment grew quickly in the third and fourth quarters of 2020 as many sectors of the economy reopened. Rural employment recovered to pre-pandemic levels in the third quarter of 2023, more than one year after urban employment did. Rural unemployment rates in 2023 were at their lowest point since before 1990. *********************************************************************************** Vilsack Announces Rural Infrastructure Funding Agriculture Secretary Tom Vilsack Wednesday announced a more than $772 million investment for rural infrastructure projects. USDA says the new projects will benefit more than one million people living in remote areas of the country by providing reliable high-speed internet access, clean, safe water and a range of support for rural communities. Vilsack commented, "The investments will help us build our economy from the middle out and bottom-up by bringing high-speed internet, clean water, modern infrastructure, and good-paying jobs to communities in rural areas." USDA is investing $51.7 million to expand access to high-speed internet for rural areas through the Reconnect Program and the Broadband Technical Assistance Program, and $42 million in grants through the ReConnect Program. The investments also fund infrastructure projects in underserved communities participating in the Rural Partners Network. And USDA is financing projects through the Water and Waste Disposal Loan and Grant Program to help build and improve rural wastewater systems. *********************************************************************************** USDA Proposes Changes to Monitoring Child Nutrition Programs USDA's Food and Nutrition Service recently published a proposed rule that the agency says will help ensure the federal child nutrition programs are properly operated. The regulatory updates seek to strengthen and clarify the process for correcting major mismanagement problems, also called serious deficiencies, found in child nutrition programs. The proposed changes will ensure that procedures in Child and Adult Care Food Program and Summer Food Service Program, also known as CACFP and SFSP, align with current requirements under law. The changes include providing operators a fair path to fully correct serious mismanagement problems, clarifying termination and disqualification criteria for SFSP operators, and addressing legal requirements for obtaining records of individuals who are disqualified from the program and sponsoring organizations that operate in multiple states. USDA is also proposing a standard definition of what it means for an operator to be in “good standing,” which currently does not exist. The public is invited to comment on the proposed changes by May 21 at regulations.gov. *********************************************************************************** Growth Energy: California Proposal Leave Biofuels Behind Growth Energy this week submitted comments to the California Air Resources Board regarding the board's proposed changes to California's low-carbon fuel standard. Growth Energy CEO Emily Skor says, “While California has its sights set on the future, the state continues to overlook a significant challenge that it faces right now: decarbonizing the millions of internal combustion engine vehicles in the state that will continue to be on the road for decades. Growth Energy contends the proposal ignores plant-based fuel options, such as ethanol and biodiesel. One issue is the audit processes included in the proposal. Renewable Fuels Association Chief Economist Scott Richman says, “Imposing a third-party verification system for feedstock certification places an extreme audit burden on feedstock suppliers and biofuel producers without any clearly defined benefit.” Richman added that the provision does not define the general term "sustainability" and needs extensive stakeholder engagement and analysis before being considered for inclusion in any amendment to the LCFS program. *********************************************************************************** Senators: Livestock Consolidation a “Bad Deal” For Consumers, Ranchers Senators Chuck Grassley and Jon Tester encourage their Senate colleagues to oppose recent efforts that they say will weaken the Packers and Stockyards Act. The upcoming Fiscal year 2024 Agriculture Appropriations bill includes provisions Grassley and Tester say would "prevent USDA from enforcing the Packers and Stockyards Act to hold multi-national food manufacturers accountable." Grassley, an Iowa Republican, and Tester, a Montanna Democrat, contend, "Congress must reject the latest push by these special interests to attach a rider to the FY 2024 Agriculture Appropriations bill to once again block USDA from implementing the 2008 bipartisan Farm Bill reforms." Enforcement already falls short in leveling the playing field for small-scale producers, and the Senators highlighted that recent efforts by the nation's largest meatpackers to prevent further enforcement would be detrimental to America's family farmers and ranchers. Currently, four companies control over 80 percent of domestic beef processing, 60 percent of domestic hog processing, and 50 percent of domestic poultry processing. *********************************************************************************** Ground Broke on New ARS Research Facility in Georgia USDA’s Agricultural Research Service and the University of Georgia broke ground Wednesday on a new research facility on the UGA Tifton campus. The facility will house the Southeast Watershed Research Laboratory and the Crop Genetics and Breeding Research Unit. USDA says research at the facility will advance climate-smart agricultural research ranging from water resources to insect and pollinator management, and developing resilient and sustainable crop systems for the Southeastern United States. USDA Chief Scientist Dr. Chavonda Jacobs-Young says, "We are grateful for our longstanding partnership with scientists and students at the University of Georgia-Tifton, and we look forward to seeing this state-of-the-art facility foster additional innovation." USDA says the partnership between ARS and UGA highlights the importance of bringing cutting-edge research to the heart of South Georgia agriculture and helps prepare the next generation of agricultural leaders to take the world's stage through student experience and education.
| Rural Advocate News | Thursday February 22, 2024 |
Thursday Watch List Markets South American weather will be of concern as well as the EIA's weekly petroleum status report, which will give ethanol production and stocks and is out at 10 a.m. CST. At 7:30 a.m. CST we will get Initial Jobless Claims and at 9 a.m., existing home sales. Weather A weak system moving through the Eastern Corn Belt already has some showers and thunderstorms with it, but it'll be developing more widespread showers by the afternoon across the Ohio and Tennessee Valleys before making its way to the East Coast for Friday. Temperatures behind this system continue to be warm and it will be all rain.
| Rural Advocate News | Wednesday February 21, 2024 |
Assessment Shows U.S. Soy’s Carbon Footprint Has Considerably Decreased A newly released Life Cycle Assessment found the U.S. soybean industry’s global warming potential profile decreased considerably in 2021 for whole soybeans, soybean meal, and soy oil compared to previously reported findings in 2015 and 2010. Commissioned by the United Soybean Board and the National Oilseed Processors Association, the study assessed the main drivers of the environmental impact, including soybean cultivation and harvesting, transportation, and energy usage in processing. USB CEO Lucas Lentsch says, “This body of research helps farmers better assess and understand soy’s contribution to the environmental impacts throughout the life cycle of the entire soybean value chain.” The study found that the soybean industry’s carbon footprint decreased considerably in 2021 for all U.S. Soy commodities compared to 2015, including a 19 percent decrease for U.S. soybeans, a six percent decrease for U.S. soybean meal, a 22 percent decrease for U.S. crude soy oil and an eight percent decrease for U.S. refined soy oil. *********************************************************************************** Zinke Introduces Legislation to Protect Public Lands Congressman Ryan Zinke this week introduced the Public Lands in Public Hands Act. The Montanna Republican Representative announced the legislation during a roundtable in Bozeman, Montanna. The legislation would ban the sale or transfer of most public lands managed by the Department of the Interior and U.S. Forest Service except under specific conditions and where required under previous laws. The bill also requires Congressional approval for disposals of publicly accessible federal land tracts over 300 acres and public land tracts over five acres if accessible via a public waterway. This provision alone would protect public access to nearly 30 million acres of public lands depended upon by outdoorsmen of all types across Montana. Zinke says, “Public lands must remain public, and the federal government has a responsibility to manage and ensure access to those lands.” Zinke partnered with Democrat Congressman Gabe Vasquez from New Mexico on the legislation. *********************************************************************************** USDA Sets Dates for Peanut Checkoff Continuance Referendum The Department of Agriculture will conduct a referendum April 8-19, 2024, for eligible U.S. producers of peanuts to decide whether to continue their checkoff program. USDA's Agricultural Marketing Service will conduct the referendum by regular mail, express mail and electronic ballot. AMS staff will mail ballots and voting instructions to all known eligible U.S. peanut producers before the voting period. Folks engaged in the production and sale of peanuts at the time of the referendum and during the representative period of January 1 through December 31, 2022, are eligible to vote. The order will continue if a majority of producers voting in the referendum favor it. Completed ballots delivered to AMS via regular mail must be postmarked by April 19, 2024, to be counted. Ballots delivered to AMS via express mail or electronic ballot must show proof of delivery no later than 11:59 p.m. ET April 19, 2024 to be counted. *********************************************************************************** USDA Announces Renewable Energy Application Assistance The Department of Agriculture Tuesday announced a grant program for organizations to provide hands-on assistance to producers applying for the Rural Energy for America Program, or REAP funding. USDA is making $16 million available through the REAP Technical Assistance Grants Program to provide additional support to farmers, ranchers and rural small business owners seeking REAP funds. Eligible recipients for these grants include state, Tribal or local governments; colleges and universities; electric cooperatives and utility companies; and for-profit and nonprofit organizations. USDA expects the effort to help rural agricultural producers and small business owners apply for REAP funding, provide information on how business owners and agricultural producers can improve the energy efficiency of their operations and use renewable energy technologies and resources, among other benefits. Since December 2022, USDA has made up to $1.3 billion available in REAP funding through the Inflation Reduction Act. Applications must be submitted by March 15, as detailed in the Federal Register. *********************************************************************************** CropLife America Appoints Next President and CEO CropLife America Tuesday announced Alexandra (Alex) Dunn as its new president and chief executive officer. Dunn joins CropLife America after serving as a Partner in the Environmental, Safety, and Incident Response group at the international law firm of Baker Botts, L.L.P. While at Baker Botts, Dunn worked on pesticide issues, chemical regulation, water quality, enforcement, litigation, environmental justice, and community engagement. In 2019, with bi-partisan support, she was confirmed with unanimous consent by the U.S. Senate, to serve as Assistant Administrator for the U.S. Environmental Protection Agency's Office of Chemical Safety and Pollution Prevention from 2019 – 2021. CLA Chairman Andy Lee says, “Alex’s experience will provide guidance and leadership in both the policy and regulatory spaces.” Dunn responded, “I cannot think of a better moment than the present to work towards agricultural solutions that benefit the public and the planet.” CropLife America Partnered with executive search firm Kincannon & Reed for the search. *********************************************************************************** Fuel Prices Trending Higher For the fourth straight week, the nation's average price of gasoline has gone up, rising 8.7 cents from a week ago to $3.26 per gallon. The national average is up 16.7 cents from a month ago but 11.6 cents per gallon lower than a year ago. The national average diesel price increased 10 cents last week and stands at $4.09 per gallon—38 cents lower than one year ago. GasBuddy's Patrick De Haan says, "One of the most critical elements to how much gas prices will climb is how quickly and effectively refiners can finish their pre-summer maintenance, start producing EPA-mandated summer gasoline, and build up supply of it before Memorial Day." The price of oil has seen some sideways movement, but overall strength continues, with oil now closing in on $80, its highest level since November. Meanwhile, U.S. retail gasoline demand saw an increase of 0.7 percent for the week ending February 18.
| Rural Advocate News | Wednesday February 21, 2024 |
Wednesday Watch List Markets Traders continue to watch the weather forecasts, especially for South America, while Brazil's soybeans are being harvested and corn is being planted. News also remains a concern from Ukraine, Israel and the Red Sea. At 1 p.m. CST, the Federal Reserve will release minutes from the January Open Market Committee meeting. Weather A storm system that has been bringing widespread showers to the West the past couple of days will move into the Southern Plains Wednesday night then head east through the Ohio Valley for Thursday. As the system leaves, scattered showers will develop from the Central Plains into the southern Midwest, being light, but becoming heavier in the Ohio Valley for Thursday. It continues to be warm both ahead of and behind this system, making it all rain.
| Rural Advocate News | Tuesday February 20, 2024 |
New Era of Growth for Clean Fuels Clean Fuels Alliance America welcomed almost 850 attendees from over 20 countries to its Clean Fuels Conference in Fort Worth, Texas. It was a chance to connect with key players in the biodiesel, renewable diesel, and sustainable aviation fuel industries. “The conference offered a setting to unite on the mission and vision that are so critical to our success,” says Clean Fuels CEO Donnell Rehagen. “As our industry continues to evolve, it’ll be even more important to remain together and focused on the issues that move us forward.” Companies including BNSF Railway, Union Pacific, American Airlines, and PepsiCo took the stage to discuss sustainability goals and how clean fuels are moving the needle to reach them. OEM operators took attendees behind the scenes to explain how they are embracing the challenge of decarbonization and securing approvals to ensure liquid fuels continue to play a pivotal role in powering heavy-duty machinery. *********************************************************************************** Rural Mental Health Group Wins Prestigious Award Rural mental health national nonprofit Rural Minds was selected as the 2023 STARR Coalition Advocacy Organization of the Year and won the prestigious STARR Award. “This recognition is given to the advocacy organization that’s demonstrated exceptional dedication to advocating for those living with mental illness, their efforts to fight the mental illness stigma, and who support efforts to expand mental health research,” says Erica Moore of the STARR Coalition. Rural Minds Executive Director Chuck Strand says, “We thank the coalition for the award and recognition of the collaborative work we are doing through Rural Minds to help people in rural communities overcome unique barriers to mental health.” Rural Minds Founder and Chairman Jeff Winton adds that they look forward to the ongoing collaboration with other nonprofits, corporations, and individuals across the country as they confront the growing health issue facing rural America. For more information on the group, go to ruralminds.org. *********************************************************************************** Pork Exports Projected to Surpass Broiler Chicken Exports USDA’s long-term projection data shows the volume of U.S. red meat exports in all major categories is projected to grow through 2033. Rising incomes abroad and a moderately declining real exchange rate of the U.S. dollar against the currencies of major agricultural trading partners lend support to U.S. red meat and poultry exports. By 2028, pork exports are set to exceed exports of broiler chickens for the first time since 1976. Steady growth in U.S. pork production, driven by a combination of increasing slaughter weights, rising pigs per litter, and higher inventories, is projected to support rapid growth in exports. New environmental policies in the European Union are expected to impact pork production and reduce the growth of EU exports, which will enhance U.S. competitiveness. U.S. pork exports are expected to increase by 34 percent from an expected 6.95 billion pounds in 2024 to a projected 9.34 billion pounds by 2033. *********************************************************************************** Prop 12 Will Cause Market Chaos Ag Secretary Tom Vilsack didn’t hold back when asked about the potential economic harm of California’s Prop 12. “If Congress doesn’t act, we’re going to have chaos in the marketplace,” Vilsack said in response to a question from House Ag Committee Chair Glenn Thompson. California’s Prop 12 went into effect on January 1 and placed housing restrictions on farms that ship pork to the state. By setting production standards in other states, California is regulating interstate commerce, which Prop 12 opponents say is an authority reserved for the federal government. “The reality is that when each state has the ability to define for itself and its consumers exactly what farming techniques are appropriate, it creates the possibility of 50 different sets of regulations,” Vilsack says. “That means no certainty for producers.” He also says if the issue isn’t taken seriously, it’ll mean chaos because other states can take the same steps. *********************************************************************************** Land Use Study Shows Interesting Results A new study from the researchers at the University of Illinois at Chicago’s Energy Resource Center evaluates the environmental and economic impacts of land use change. The land use change impact is specifically for land that moves in and out of cropland over ten-year time periods. The study aimed to determine land use and soil organic carbon stocks on 1,000 land parcels over a 36-year period. “As part of this study, we conducted a historical analysis going back to 1985 and found that longer time intervals need to be considered when determining the environmental and economic impact of land use changes,” says lead researcher Ken Copenhaver. “Notably, this is not something that current regulations are taking into consideration.” Using advanced satellite imagery and aerial photography, the researchers discovered their findings challenge previous studies that primarily focus on shorter time intervals, often less than ten years when examining land use changes.” *********************************************************************************** Western Land Survey Shows Unity on Concerns A new poll that surveyed at least 400 registered voters in each of the eight western states shows residents putting a top priority on clean air, clean water, conservation, and combating wildfires. The 14th annual Colorado College’s “Conservation in the West” poll found a lot of agreement, in a nation that’s become highly polarized, over the issue of protecting wild places, preserving wildlife migration corridors, and doing more to ensure the availability of a clean water supply. “There may be a lot that divides voters across the country, but in the West, there’s almost universal consensus in favor of conservation,” says Katrina Miller-Stevens, an associate professor at Colorado College. “Not only do voters prefer conservation when asked how water and public lands should be used, but issues involving water, air, land, and wildlife are top of mind when making their voting decisions.” Sixty-six percent of respondents think climate change impacts are significant
| Rural Advocate News | Tuesday February 20, 2024 |
Top 5 Things to Watch - Short Market Week, Clipper Weather Systems 1. Presidents Day holiday: Markets are closed on Monday in observance of federal Presidents Day holiday in the United States, although mandatory livestock reports are still released that day. Canadian markets are also closed for Family Day in some provinces or named a different holiday in others. We'll have limited updates, with market coverage and full news coverage resuming Tuesday. 2. Census of Ag details: We'll continue to dig into the trends and surprises from the 2022 Census of Agriculture. 3. More machinery coverage: We'll have additional pieces from our attendance at several of the winter farm equipment shows. 4. Weather changes: Throughout next week, multiple clipper systems will cross the Central U.S., providing areas of rain and isolated snow showers. The Northern and Central Plains may see warmer weather return through the week. In the Midwest, those systems will also bring higher temperatures, which will keep precipitation in the form of rain instead of snow. In South America, a system off the Brazil coast will continue to produce showers in southern and eastern Brazil through early this week. The front that is moving through Argentina this week may produce scattered showers later in the week. 5. Economic reports to Watch: Monday is the Presidents Day holiday, commodity and stock markets are closed and no government reports are out, although mandatory livestock reports are still released that day. Canadian markets are closed for Family Day/another holiday on Monday. China futures markets will reopen. U.S. futures markets open Tuesday morning. Tuesday starts with the U.S. Leading Economic Indicators report at 9 a.m., followed by U.S. Grain Inspections at 10 a.m. The NASS Chicken and Eggs Annual report is out at 2 p.m. Then Thursday starts with Initial Jobless Claims at 7:30 a.m.; at 8:45 a.m. is S & P services and manufacturing PMIs; 9 a.m. is the release of existing home sales, and at 10 a.m. the EIA will release the weekly petroleum status report, including weekly ethanol production and stocks. At 2 p.m. we'll see the livestock and poultry slaughter reports and broiler hatchery and milk production reports. Friday starts with grain export sales at 7:30 a.m. and at 2 p.m. is the Cattle on Feed report. Watch for our Cattle on Feed Preview story prior to the report's release.
| Rural Advocate News | Tuesday February 20, 2024 |
Tuesday Watch List Markets Traders will again focus on South American weather over the weekend and the coming weeks. At 9 a.m. CST the U.S. Leading Economic Indicators report will be released. At 10 a.m. CST we will get the Grain Inspections report release. Weather Areas east of the Rockies are seeing another quiet day, but a storm system is coming ashore in the West that will cause a system later this week farther east. Temperatures continue to rise and well-above normal readings are returning again.
| Rural Advocate News | Friday February 16, 2024 |
Farmers Can Use Existing Dicamba Stocks An Arizona District Court vacated the 2020 registration of over-the-top dicamba products, so the Environmental Protection Agency issued an Existing Stocks Order. The order allows limited sale and distribution of dicamba products that were already in possession of growers or in trade channels outside of the control of pesticide companies by February 6. The order also prohibits the use of these dicamba products except where the use is consistent with the previously approved labeling, which included measures intended to reduce environmental damage caused by offsite movement of the pesticide. The EPA issued the order after receiving enough evidence that millions of gallons of OTT dicamba had already entered the trade channels before February 6. Plus, growers aren’t able to switch to other options due to the timing of the Arizona court’s decision. The order applies only to dicamba formulations designed to use over the top of dicamba-tolerant soybeans and cotton. *********************************************************************************** Ag Groups Appreciate EPA Existing Stocks Order U.S. agriculture groups expressed appreciation for the Environmental Protection Agency’s Existing Stocks Order on over-the-top dicamba use in 2024. “We’re grateful to EPA for hearing farmers’ and ranchers’ concerns and addressing them quickly to make sure they have the crop protection tools they need,” says Farm Bureau President Zippy Duvall. “Without EPA stepping in, farmers and ranchers were facing significant uncertainty and financial risk.” American Soybean Association President Josh Gackle says tens of millions of farmland acres were in limbo. “This ruling potentially affects more than 50 million acres of dicamba-tolerant soybeans and cotton, an area larger than Nebraska.” Ted McKinney, CEO of the National Association of State Departments of Agriculture, was also pleased with the decision. “As co-regulatory partners with EPA, we commend the agency for issuing the existing stocks order on dicamba,” he says. “The stocks order will prevent severe detrimental impacts to our food, fuel, and fiber availability.” *********************************************************************************** January Tractor Sales Up Slightly in the U.S. Unit sales of four-wheel-drive tractors grew slightly in the U.S. during January. The latest data from the Association of Equipment Manufacturers shows four-wheel-drive tractor sales increased 1.4 percent year-over-year and was the only segment to show growth in January. In Canada, four-wheel-drive tractor sales were unchanged at 409 units in January compared to 2023. “The slight gain in U.S. four-wheel-drive tractors is positive news as 2024 begins,” says AEM Senior Vice President Curt Blades. “While overall sales fell in both the U.S. and Canada compared to January 2023 sales, we remain optimistic about future long-term growth.” Overall unit sales of U.S. tractors dropped 21.2 percent compared to January 2023 sales, while combine sales finished 4.9 percent below last January. Under-40 horsepower tractors were down 26 percent from last year. Canadian tractor sales ended January 30 percent below the 2023 data. Combines were also down 9.5 percent in January compared to last year. *********************************************************************************** Crop Insurance Costs to Jump 29 Percent The federally-subsidized crop insurance program will cost an additional $27.7 billion over the next decade. A Congressional Budget Office report says the government pays roughly 62 cents of each dollar in premiums, and sales of livestock and forage policies are exploding. A Farmdoc report says crop insurance costs should rise by 29 percent to nearly $125 billion for the decade ending in 2033. Despite the increase, USDA spending on crop and livestock subsidies and land stewardship programs should remain stable. While crop insurance costs likely will increase, the Senate Ag Committee says that projected costs for all farm bill-related programs are now $1.46 trillion between 2025 and 2034. That’s down 3.5 percent from the previous ten-year baseline of $1.5 trillion. Livestock insurance programs have grown dramatically since 2018 when Congress increased the premium subsidy rates for coverage. Policies covered $26.4 billion of liabilities in 2023, compared to $512 million in 2018. *********************************************************************************** Eighteen Months From a Bird Flu Vaccine Ag Secretary Tom Vilsack says the United States is 18 months away from a vaccine for bird flu. That news comes as more than 81 million U.S. poultry and aquatic birds have been killed by avian flu across 47 states since January 2022, according to the Centers for Disease Control and Prevention. The U.S. has found bird flu this year in eight commercial flocks and 14 backyard flocks so far, affecting 530,000 poultry. During a Congressional hearing, Vilsack said, “We’re probably 18 months away from being able to identify a vaccine that would be effective for the particular flu we’re dealing with now.” Forth News says the USDA plans to discuss poultry vaccinations with trading partners amid concerns that other countries could restrict imports of vaccinated U.S. poultry. In May, the World Organization for Animal Health said governments should consider flu vaccines in their poultry to prevent the spread of avian influenza. *********************************************************************************** USGC Winter Meeting Underway in Guatemala U.S. Grains Council members and staff gathered in Guatemala this week for the Council’s 21st International Marketing Conference and 64th Annual Membership Meeting. The meeting runs through Friday and will involve discussions of the current state of feed grain and biofuel markets around the world and an update for attendees on the Council’s plans for 2024 and beyond. USGC Chair Brent Boydston opened the event with a welcome and an overview of his tenure thus far. “My theme for this year, Growing the Future, reflects both the opportunities and challenges of the current trade environment,” Boydston says. “We gather to discuss issues facing our industry and explore future demand for feed grains, distiller’s dried grains with solubles, and ethanol around the world.” Chief Agricultural Negotiator Doug McKalip addressed attendees and outlined the importance of his office’s work in Guatemala and Central America. More information is available on social media at #Grains24.
| Rural Advocate News | Friday February 16, 2024 |
Friday Watch List Markets Traders will again focus on South American weather. Government reports out at 7:30 CST are Housing Starts, Building Permits, the Producer Price Index (PPI) and Core Producer Price Index. Weather Another clipper system from the Dakotas has made its way into the Southern Midwest Friday morning and will provide snow showers to the Eastern and Southern Midwest throughout the day. Farther south, temperatures will be milder for rain showers across the Southern Delta and Tennessee Valley.
| Rural Advocate News | Thursday February 15, 2024 |
Analysis: Crop Insurance Prices Lower This Year An analysis by the University of Illinois projects crop insurance prices will be much lower than in 2023, resulting in lower per-acre premiums in 2024. That's because of lower corn and soybean futures during the first half of this month. Researchers say premiums are likely to be 16 to 18 percent lower for corn and ten to 12 percent lower for soybean policies based on current estimates for in Champaign and Jefferson Counties in Illinois. Since lower insurance prices also result in lower guarantees per acre, researchers say farmers may wish to increase their coverage levels with the premium savings. The projected insurance prices for corn and soybeans are based on average settlement prices on each crops' harvest contract during the month of February. Through February 9, the December corn contract has averaged $4.74 per bushel. The November soybean contract has averaged $11.73 per bushel or $2.03 below the $13.76 projected price in 2023, a decline of nearly 15 percent. Find the full analysis on the farmdocDAILY website. *********************************************************************************** Industry Responds to Census of Agriculture Agriculture Secretary Tom Vilsack calls the data in the 2022 Census of Agriculture a "wake-up call" for the industry. In a statement following the release of the Census, Vilsack says, "It's imperative that we continue to deliver agriculture policies that create multiple streams of income and new, more competitive models for small- and mid-sized farms." The Census reports 141,733 fewer farms in 2022 than in 2017. The number of farm acres fell more than 20 million acres from just five years earlier. American Farm Bureau Federation President Zippy Duvall says, “Increased regulations, rising supply costs, lack of available labor and weather disasters have all squeezed farmers to the point that many of them find it impossible to remain economically sustainable.” Vilsack adds, “We are at a pivotal moment, in which we have the opportunity to hold tight to the status quo and shrink our nation's agriculture sector further, or we can choose a more expansive, newer model that creates more opportunity, for more farmers." *********************************************************************************** Census of Agriculture Highlights Aging Farmer Population The 2022 Census of Agriculture shows the number of farmers over the age of 65 is outpacing younger farmers. Almost 1.3 million farmers are now at or beyond retirement age, while just 300,000 farmers are under the age of 35. The average age of all producers was 58.1, up 0.6 years from 2017. However, this is a smaller increase than average age increases between prior censuses. There were just over one million farmers with ten or fewer years of experience, an increase in the number of beginning farmers from 2017 of 11 percent. Beginning farmers are younger than all farmers, with an average age of 47.1. The number of producers under age 35 was 296,480, comprising nine percent of all producers. In 2022, 1.2 million female producers accounted for 36 percent of all producers. And the data shows that 58 percent of all farms had at least one female decision maker. *********************************************************************************** USDA: Food Prices Increased 5.8% in 2023 In 2023, all food prices increased by 5.8 percent on average compared with 2022. The figure includes both food away from home and food purchased for consumption at home. Food-at-home prices increased by 5.0 percent, while food-away-from-home prices increased by 7.1 percent. Food prices are expected to continue to decelerate in 2024. The all food prices are predicted to increase 1.3 percent, with a prediction interval of -1.4 to 4.2 percent. Food-at-home prices are predicted to decrease 0.4 percent, with a prediction interval of -4.5 to 4.0 percent, and food-away-from-home prices are predicted to increase 4.7 percent, with a prediction interval of 3.1 to 6.2 percent. Meanwhile, the Consumer Price Index earlier this week indicated an increase in January. The food index rose 0.4 percent in January, and the food at home index also increased 0.4 percent over the month. The food at home index rose 1.2 percent over the last 12 months, while the index for food away from home rose 5.1 percent. *********************************************************************************** NFU Leads Letter to Congress: Uphold Packers and Stockyards Act Progress National Farmers Union this week sent a letter to Appropriations Committee leadership opposing restrictions that would undo work to revitalize the Packers and Stockyards Act. The letter, signed by national, regional, and state organizations, points out that "opponents of competitive agricultural markets are seeking to roll back the work USDA has already completed, prevent USDA from making additional progress on these rules, and prevent any similar effort in the future." Damaging provisions were included in an earlier version of the FY24 Appropriations bill, and this same strategy was used by opponents of the Act during previous administrations. NFU President Rob Larew says, "Blocking USDA's work would be a direct hit to fair markets," adding, "Congress should champion family farmers and consumers, not bow to meatpacking monopolies. We urge them to discard this harmful proposal once and for all." Just this week, USDA's first updated Packers and Stockyards Act rule went into effect, with many more important rules to follow. *********************************************************************************** USDA Investment to Help Indigenous Communities Access Climate Markets The Department of Agriculture Wednesday announced a $20 million investment to support indigenous communities in accessing emerging climate markets. The funding, distributed through competitive grants administered by the USDA Forest Service, will help recipients access emerging private markets for forest resilience, climate mitigation, water quality, carbon sequestration and more. Agriculture Deputy Secretary Xochitl Torres Small says, “Tribes and Alaska Native corporations and villages will have broader access to markets that will help address the climate crisis.” Deputy Secretary Torres Small made the announcement during a meeting of the National Congress of American Indians in Washington. The non-profit National Congress is the oldest, largest, and most representative American Indian and Alaska Native organization serving the interests of Tribal governments and communities. The investments fund work on tribal lands and complement USDA's commitment to advance co-stewardship of national forests and grasslands. Proposals for this new grant opportunity may be submitted through August 21, 2024, at grants.gov.
| Rural Advocate News | Thursday February 15, 2024 |
Thursday Watch List Markets Traders will again focus on South American weather and watch for export sales out at 7:30 a.m. CST. The USDA Ag Outlook Forum is also taking place and we will get a look at their new crop balance sheets. Other government reports out include Initial Jobless claims, U.S. Retail Sales, and Industrial Production. Weather A clipper system providing snow to the Great Lakes and rain showers to the Eastern Midwest will exit these regions Thursday. Another clipper from the Northern Rockies will enter the Dakotas and Central Plains later Thursday into the evening, possibly providing a band of six inches of snow across southern South Dakota and northern Nebraska.
| Rural Advocate News | Wednesday February 14, 2024 |
USDA Releases 2022 Census of Agriculture USDA's National Agricultural Statistics Service Tuesday announced the 2022 Census of Agriculture results. The information collected directly from producers shows a continued decline in the total number of U.S. farms. However, the data also show a rise in the number of new and beginning farmers and young producers. New and beginning farmers are defined as those operating ten or fewer years on any farm and young producers are those under the age of 35. NASS Administrator Hubert Hamer says, “Overall, though there are always changes across U.S. agriculture, the data remain largely consistent with the previous ag census.” The data shows there were 1.9 million farms and ranches, down seven percent from 2017, with an average size of 463 acres, up five percent. Family-owned and operated farms accounted for 95 percent of all U.S. farms and operated 84 percent of land in farms. Find the complete data set online at nass.usda.gov/AgCensus. *********************************************************************************** Food Prices Increased in January Grocery prices increased slightly last month, according to the latest Consumer Price Index released Tuesday. The Consumer Price Index for All Urban Consumers increased 0.3 percent in January on a seasonally adjusted basis, after rising 0.2 percent in December. Over the last 12 months, the all items index increased 3.1 percent. The food index rose 0.4 percent in January, and the food at home index also increased 0.4 percent over the month. Four of the six major grocery store food group indexes increased over the month. The food away from home index rose 0.5 percent in January. The index for full-service meals rose 0.4 percent and the index for limited service meals increased 0.6 percent over the month. The food at home index rose 1.2 percent over the last 12 months, while the index for food away from home rose 5.1 percent over the last year. *********************************************************************************** Productivity The Major Driver of U.S. Agricultural Growth Technological developments in agriculture have enabled continued output growth without requiring much additional inputs, according to a new USDA Economic Research Service report. Innovations in animal and crop genetics, chemicals, equipment, and farm organization have made it possible for total agricultural output to nearly triple between 1948 and 2021. During that period, the amount of inputs used in farming declined slightly over time, meaning that the growth in agricultural output over the long term has depended on increases in total factor productivity. Total factor productivity measures the amount of agricultural output produced from the combined inputs in farm production. Growth in total factor productivity indicates positive changes in the efficiency with which inputs are transformed into outputs. In the most recent calculation period spanning 2020–21, agricultural output grew, which was due entirely to total factor productivity growth, even as the amount of inputs used in farming fell. *********************************************************************************** USDA Releases North America 2023 Potato Production Data A new report from the Agriculture Departments of the U.S., Mexico, and Canada reveals the 2023 North American Potato harvest data. USDA released the North American Potatoes report this week. The 2023 potato production for the United States and Canada combined is estimated at 570 million per hundredweight, up eight percent from the 2022 estimate. The United States potato production is estimated at 441 million hundredweight, up ten percent from last year. Canada's potato growers harvested 129 million, up four percent from 2022. The 2022 potato production for the United States, Canada, and Mexico combined is 567 million hundredweight, down two percent from the 2021 estimate. The United States 2022 potato production is estimated at 402 million hundredweight, down three percent from 2021. Canada’s potato growers harvested 124 million hundredweight during 2022, up two percent from 2021. Mexico’s potato growers harvested 41.4 million hundredweight during 2022, down four percent from 2021. *********************************************************************************** USDA Ag Outlook Forum Thursday USDA will hold its annual Ag Outlook Forum Thursday. The two-day event is USDA's 100th Annual Agricultural Outlook Forum, themed “Cultivating the Future.” The vent features more than 30 sessions and 120 speakers, and offers a rich and diverse program covering a range of timely topics such as commodity markets, trade, technology, climate change and more. Thursday will feature USDA Chief Economist Seth Meyer’s presentation on the 2024 Agricultural Economic and Foreign Trade Outlook, and a Keynote address by Secretary of Agriculture Tom Vilsack. Day two on Friday features a plenary session titled, “Fostering Diverse Opportunities for U.S. Agricultural Exports in the Global Marketplace.” Friday\’s schedule included virtual remarks by Secretary of State Anthony Blinken, and remarks from U.S. Trade Representative Katherine Tai. USDA will hold the event at the Crystal City Gateway Marriott in Arlington, Virginia. For more information about the program and registration, visit the Agricultural Outlook Forum website. *********************************************************************************** Collaboration Seeks Japanese Encephalitis Virus Research A new collaboration seeks to fund research for prevention and preparedness capabilities for Japanese encephalitis virus, a transboundary disease risk for U.S. introduction. The Swine Health Information Center and the Foundation for Food & Agriculture Research have partnered to fund a $1 million research program. Japanese encephalitis is an emerging zoonotic disease identified through global monitoring as a priority for North American prevention and preparedness activities. The virus is transmitted through the bite of infected mosquitoes, and biosecurity practices focused on mosquito control are key to reducing risk. In 2022, an outbreak of the disease spread rapidly across new geographic regions of Australia, affecting breeding swine herds. Individual awards are capped at $250,000, but proposals may exceed the cap if sufficient justification is provided. All projects should strive to be unique, have a high impact, show value to pork producers, and have industry-wide benefit. Additional information can be found at www.swinehealth.org.
| Rural Advocate News | Wednesday February 14, 2024 |
Wednesday Watch List Markets Traders will again focus on South American weather, and at 10 a.m. CST, the EIA will be out with their Weekly Petroleum report which will detail weekly ethanol production and stocks. There will be no government economic reports following Tuesday's higher than expected Consumer Price Index data. Weather A band of moderate to heavy snow will develop across South Dakota, Minnesota, and Wisconsin Wednesday and parts of west-central Minnesota and east-central South Dakota could see up to eight inches of snow. Cooler temperatures are expected behind this system.
| Rural Advocate News | Tuesday February 13, 2024 |
Growth Rate of World Ag Production Slows USDA says in the last decade, world agricultural output grew at an average annual rate of 1.94 percent per year, far slower than the 2.74 percent growth rate over the prior decade. That’s also below the average annual rate of 2.3 percent over the past six decades from 1961-2021. The slowdown was primarily tied to a slowing rate of growth in agricultural total factor productivity (TFP), which fell 1.4 percent per year in 2011-2021 compared to 1.93 percent per year during the previous decade. TFP measures the amount of agricultural output produced from the aggregated inputs used in the production process, including land, capital, labor, and material resources. There are four major sources for overall growth, including bringing more land into production, extending irrigation to land, intensifying the use of capital, labor, and material inputs per unit of land, and improving TFP, reflecting the rate of technological and efficiency improvements of inputs. *********************************************************************************** Questions Continue About Farm Kids and Financial Aid Iowa Republican Senators Chuck Grassley and Joni Ernst are pressing the Department of Education for clarity regarding Question 22 on the new Free Application for Federal Student Aid. They’re especially concerned that the way the agency chooses to ask the question will force students to list the net worth of family farms as assets. Current ambiguities could cut off farm kids from needed financial aid and make it less feasible for them to attend college. “The question fundamentally misunderstands how the family farm operates, as the stream of revenue for crops and livestock varies significantly year-over-year, and assets cannot get cashed out to support a loan in the same capacity as traditional investments,” the senators wrote in a letter to the Education Department. “We reiterate our concern with the nature of this question and the lack of insight on how the adjusted formula will impact students from an agricultural background.” *********************************************************************************** FACA Sees Workforce Development Opportunities The Food and Agriculture Climate Alliance welcomes the launch of a USDA workforce development initiative aimed at building the next generation of conservation delivery providers. The Working Lands Climate Corps is a promising opportunity to provide on-the-ground education and training to develop the skillset needed to address natural resource challenges. Climate Corps fellows, working with state and local organizations, will gain the skills needed to provide conservation technical assistance to agricultural producers who are voluntarily making climate-smart investments in their operations. FACA appreciates USDA’s commitment to building the next generation of boots on the ground but acknowledges the immediate need for more capacity today. “We encourage USDA to continue to prioritize ongoing capacity-building and recruitment efforts,” FACA says. “These two efforts are complementary and necessary to build a robust workforce to scale conservation delivery. FACA members are united in support of climate policies that are voluntary, market-based, and scientifically sound. *********************************************************************************** FMMO Next Steps Begin With the Federal Milk Marketing Order hearing now complete, USDA is now considering the more than 12,000 pages of testimony as it formulates a plan for FMMO modernization. The National Milk Producers Federation is still doing what it can to ensure that the proposal best reflects the interest of dairy farmers and their cooperatives. The organization says the key to a successful modernization is a comprehensive approach that addresses the complexity of federal orders in a way that respects the entire dairy industry while keeping in mind that orders most fundamentally must work for farmers. That’s the bedrock principle behind NMPF proposals on areas ranging from returning to the “higher-of” Class I mover to updating milk composition factors. “You can’t look at the federal order system having not been updated in 20 years and not address all facets of the industry,” says Stephen Cain, NMPF Senior Director for Economic Research and Analysis. *********************************************************************************** Grocery Buying Goes Online In 2022, the Economic Research Service’s Eating and Health Module captured, for the first time, nationally representative data concerning the prevalence and frequency of Americans doing online grocery shopping. The survey data revealed that nearly nine out of ten individuals aged 15 and older (87.2 percent) reported they usually grocery shopped for their household either online or in person. Of these, about two in 10 (19.3 percent) had bought groceries online at least in the past 30 days. However, the frequency of online shopping varied. Among those who had bought groceries online in the past month, 30 percent did once, 25 percent made two online purchases, and 44 percent bought groceries online three or more times. The landscape of online grocery shopping took a big shift in 2020 because of COVID. The Food and Drug Administration says online grocery sales grew 55 percent from 2019’s $62 billion to $96 billion in 2020. *********************************************************************************** Fake Meat Investment Falls The last 12 months have been c challenging for cultivated meat and seafood companies trying to raise capital. For example, AGFunderNews.com says Finless Foods is making cutbacks to conserve cash, New Age Eats running out of funds, and GOOD Meat getting sued by its bioreactor supplier over allegedly unpaid bills. As AgFunder runs the numbers, preliminary data shows that funding for cultivated meat startups peaked at $989 million in 2021, dipped slightly to $807 million in 2022, and then dropped sharply last year, falling 78 percent to $177 million against a backdrop of a 50 percent drop in agrifood tech investing overall in 2023. While the funding rounds were far smaller in 2023 versus 2022, investors placed a sizable bet on Uncommon, a UK-based startup formerly called Higher Steaks. That investment netted $30 million in funding to scale the production of cultivated pork using patent-pending technology by speeding up the cell differentiation process.
| Rural Advocate News | Tuesday February 13, 2024 |
Tuesday Watch List Markets The U.S. Labor Department's consumer price index for January will be out at 7:30 a.m. CST Tuesday. USDA's 2022 Census of Agriculture is also due out sometime Tuesday. Traders continue to monitor the latest weather forecasts in South America and events in the Middle East. Weather A system that brought heavy rain and some snow to the Southeast Monday continues on the East Coast for Tuesday. A clipper coming down from Canada will be getting into the Northern Plains with some isolated snow showers as well, but most areas are going to be quiet Tuesday.
| Rural Advocate News | Monday February 12, 2024 |
U.S. Pork Exports Set Annual Record Led by a record-shattering performance in Mexico and broad-based growth elsewhere, U.S. pork exports set a value record in 2023. Data shows December pork exports rose 10 percent from the prior year to 268,400 metric tons, the largest since May 2021 and the eighth-largest on record. Export value increased 11 percent to $766 million, also the highest since May 2021 and the third-highest on record. The strong December pushed 2023 export value to a record $8.16 billion, six percent higher than 2022. Export volume reached 2.91 million tons, eight percent higher year-over-year and the third-largest on record. Beef exports closed the year on a higher note, with December totaling 108,497 million tons, down four percent year-over-year but the largest level since August. Export value was also the highest since August, climbing 10 percent over 2022 to $860.8 million. 2023 beef exports hit 1.29 million tons, 12 percent below 2022 levels. *********************************************************************************** Farmers Need Access to Crop Protection Tools American Farm Bureau President Zippy Duvall sent a letter to the Environmental Protection Agency asking the agency to allow farmers to use existing dicamba stocks for the upcoming season. An Arizona court vacated the registration of three dicamba products critically important for farmers in fighting resistant weeds. “Many farmers have already made planting decisions to use dicamba-tolerant crop systems and have planned to use dicamba products in the near future,” Duvall says. “These farmers invested in substantial sums in the dicamba-resistant seeds in reliance on EPA’s prior approval of dicamba on these crops.” He adds that without those products, not only are the substantial investments at risk, but farmers don’t know how they’ll protect their crops. AFB is asking EPA to issue an existing stock order to ensure dicamba remains available to farmers throughout the growing season. “We are committed to the safe use of all crop protection tools,” Duvall adds. *********************************************************************************** USDA Contributes $270 Million to Bolster Food Supply Chain Ag Secretary Tom Vilsack announced that the USDA has awarded over $270 million to date through cooperative agreements with state departments of agriculture to build resilience across the middle of the food supply chain and strengthen local and regional food systems. The funding is awarded through the Resilient Food Systems Infrastructure Program. At the National Association of State Departments of Agriculture’s Winter Policy Conference, Vilsack announced Colorado, Connecticut, Delaware, Kentucky, Louisiana, Utah, and West Virginia have now opened their Request for Applications for the program, joining 28 states that are already offering grant funding for projects that support supply chain infrastructure. “These unprecedented investments into our nation’s supply chain infrastructure will not only benefit consumers by ensuring they have dependable access to fresh and locally produced food, but the investments will also benefit producers and rural communities by providing more and better markets for small and mid-sized producers,” he says. *********************************************************************************** Part of Massachusetts Pork Law Ruled Unconstitutional A U.S. District Judge ruled that a portion of the recent Massachusetts law that bans the sale of pork if a pig is held in a confined space is unconstitutional. However, Boston media reports say the judge is allowing that part of the law to be severed, and the rest will stay in effect for now. Judge William Young made the ruling following a lawsuit by pork processors and other pig farmers who believed the pork law was unconstitutional. The law, called “The Prevention of Farm Animal Cruelty Act,” was approved by voters in 2016 and banned the sale of eggs, veal, and pork from animals held in conditions deemed cruel. The portion of the law getting argued was an exemption that allowed the sale of pork from federally inspected slaughterhouses in Massachusetts that don’t meet requirements as long as the buyers take possession of the pork while on their premises. *********************************************************************************** EPA Outlines Potential ESA Pesticide Policies The Environmental Protection Agency announced implementation approaches for pesticide policies under the Endangered Species Act. Assistant Administrator Michael Freedhoff talked about the steps during a speech at the National Association of State Departments of Agriculture’s winter policy conference. When registering pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act, EPA must also comply with the Endangered Species Act to ensure the pesticides don’t harm endangered species or their habitats. EPA announced additional plans to address concerns about the challenge of protecting endangered species from exposure and expand its partnership with the USDA. EPA says it won’t implement the Vulnerable Species Pilot Protections for a species until a more refined map of its habitat gets developed. The agency is also working to develop new maps that better reflect where the species actually live and where protections from pesticides are needed most. “These steps will benefit farmers and endangered species,” Freedhoff says. *********************************************************************************** McDonald’s Hits 100 Percent Cage-Free Eggs McDonald’s says it met the goal of sourcing 100 percent cage-free eggs in the U.S. by 2025, two years ahead of its original timeline. The company says it’s continuing to prioritize the health and welfare of the animals in its supply chain. The improvement is in the power of the “McDonald’s System” working together towards a shared goal. As a U.S. system, McDonald’s purchased almost two billion eggs in 2023, close to six times the entire U.S. population. “Our journey to move to sourcing 100 percent cage-free eggs in the U.S. was a huge undertaking that was made uniquely possible by our owner/operators, producers, and our supply chain working together as one team,” says Bob Stewart, SVP and North American Chief Supply Chain Officer for McDonald’s. “I’m incredibly proud of what we achieved together and the positive impact we’ll continue to make on the path toward a more sustainable future.”
| Rural Advocate News | Monday February 12, 2024 |
Top 5 Things to Watch - Big Shows and Big Reports 1. National machinery shows: Two of the big farm shows kick off this week. DTN will have a series of markets, weather and cropping sessions going on during the National Farm Machinery Show in Louisville, Kentucky. Come hear DTN Ag Meteorologist John Baranick and DTN Lead Analyst Todd Hultman -- they'll have daily sessions on our weather and commodity markets outlooks Wednesday (at 2:30 p.m. EST), Thursday (8:30 a.m. EST) and Friday (10 a.m. EST). Our Successful Cover Crop Strategies session, featuring a panel of cover crop and carbon program experts, is Thursday at 10:30 a.m. We'll also have DTN Senior Editor Dan Miller and others reporting from the show floor. DTN Senior Editor Joel Reichberger will be at Tulare, California to report the latest new technologies on display at the World Ag Expo. 2. Census of Ag: On Feb. 13, USDA will release results of the 2022 Census of Agriculture. We'll have insights into some of the key trends in prices, land ownership and other key indicators that have taken shape since the 2017 Ag Census. We'll have continued reporting on census figures through the coming weeks. 3. USDA Outlook Conference. On Feb. 15-16, USDA will hold its annual outlook conference in Washington, D.C. This year's conference is a few weeks earlier than normal, but will feature USDA's official outlook on all the major commodities for 2024. We'll report from the event. 4. Weather cools: The unseasonably warm conditions of the past 10 or so days will taper somewhat, though most of the country will still see temperatures slightly above to above normal for mid-February. Systems could bring more showers to the Southern and Central Plains late in the week. 5. Economic reports to watch: Monday starts with grain inspection reports at 10 a.m. At 1 p.m. the Monthly Federal Budget report is revealed. Tuesday at 7:30 a.m. we will have the Consumer Price Index (CPI), Core CPI and Core CPI year-over-year results. On Wednesday (Happy Valentine's Day!) we'll see the EIA Weekly Petroleum Report, including ethanol production and stocks, at 10 a.m. Then Thursday sees a collection of reports hitting at 7:30 a.m., including weekly grain and oilseed export sales, initial jobless claims, U.S. retail sales and national import and export numbers. Industrial Production numbers are out at 8:15 a.m., with Home Builder Confidence Index at 9 a.m. and the weekly Economic Index Report at 10:30 a.m. (Don't forget to water those flowers you bought your Valentine. Wait, you did get flowers, right?) Friday morning will be busy. We'll see U.S. Housing Starts report at 7:30 a.m., as well as Building Permits and the New Residential Construction report, along with the Producer Price Index (PPI), Core PPI, and PPI Year-Over-Year reports. At 9 a.m. the Consumer Sentiment report will be released. Whew!
| Rural Advocate News | Monday February 12, 2024 |
Monday Watch List Markets Back from the weekend, traders will be paying attention to South American weather and the latest events from the Middle East. Markets in China are closed this week for the Lunar New Year. USDA's weekly export inspections will be out at 10 a.m. CST. The U.S. Treasury Department reports on the federal budget for January at 1 p.m. Weather A system from the weekend continues to move through the Southeast on Monday, with areas of heavy rain and thunderstorms, some of which may be severe. On the northern end of the storm, it will be just cold enough to get some snow to fall from southern Missouri through portions of the Ohio Valley. Despite the snow, it still remains mild by February standards in most places of the country outside of the Southwest.
| Rural Advocate News | Friday February 9, 2024 |
February WASDE Shows Higher Corn, Soybean Ending Stocks The February World Agricultural Supply and Demand Estimates show the 2023-2024 U.S. corn outlook calling for lower food, seed, and industrial use and larger ending stocks. Lower usage will lead to a 10 million bushel increase in ending stocks compared to last month’s report. The season-average corn price received by producers is unchanged at $4.80 a bushel. This month’s soybean outlook is for lower exports and higher ending stocks. Soybean exports are forecast at 1.72 billion bushels, down 35 million from last month. With crush unchanged, ending stocks are forecast at 315 million bushels, up 35 million from last month. The season-average soybean price is forecast a dime lower to $12.65 per bushel. The wheat outlook is for stable supplies, lower domestic use, unchanged exports, and higher ending stocks. Projected ending stocks are up 10 million bushels to 658 million. The season-average farm price forecast is unchanged at $7.20 a bushel. *********************************************************************************** Ag Retailers Association Unhappy with Dicamba Decision Earlier this week, a federal District Court in Arizona vacated the registration for over-the-top applications of dicamba on dicamba-tolerant soybeans and cotton. While the court decision came from Arizona, the decision is national in scope. The Ag Retailers Association disagrees with the decision, noting the determination should be made by a science-based regulatory agency. The association says, “The timing of the decision will be extremely disruptive to ag retailers, distributors, manufacturers, and farmers planning to use the products in 2024.” The ARA points out that farmers have already made their decisions about what varieties of cotton and soybean seeds they want to plant this year, and retailers are already stocking not only the seeds but also the herbicides the growers need for their systems. “The decision comes after most planning is finished and while we are procuring those products that farmers need,” the ARA adds. “It’s the worst possible time.” *********************************************************************************** CoBank: Lack of Heifers May Limit Milk Production Growth A sharp decline in the number of dairy heifers available to replace older cows exiting the U.S. dairy herd could limit meaningful growth in milk production. The number of dairy replacement heifers has fallen almost 15 percent in the last six years to reach a 20-year low. While the global demand outlook for U.S. dairy products is murky due to export market uncertainties, any potential growth opportunities may get stymied by an inability to expand U.S. milk production. A new report from CoBank’s Knowledge Exchange says the rising cost of rearing dairy heifer calves has far outpaced increases in heifer values over the last several years. That imbalance has prompted dairy farmers to reduce their replacement heifer inventories, doing so, in large part, by breeding more dairy heifers and cows to beef bulls. “Farmers can cut costs associated with heifers and generate additional income from beef,” says Cory Geiger of CoBank. *********************************************************************************** Renewable Diesel to Expand by 30 Percent Annually The Energy Information Administration predicts renewable diesel production to increase by 30 percent annually in both 2024 and 2025. In its latest Short-Term Energy Outlook, the EIA says renewable diesel production will average approximately 230,000 barrels per day in 2024 and expand to 290,000 barrels per day in 2025. In comparison, production averaged approximately 200,000 barrels per day at the end of 2023. Renewable diesel production capacity has expanded significantly in recent years. EIA data shows capacity was at 1.75 billion gallons a year in January 2022 and had reached 3.85 billion gallons a year by November 2023. The EIA also announced it is reducing U.S. crude oil capacity forecast by 120,000 barrels per day beginning in March. That prediction comes after Phillips 66 plans to permanently stop processing crude oil at its Rodeo refinery in California next month. The company is planning to convert the facility to produce renewable diesel. *********************************************************************************** NIAA Adopts New Strategic Plan To ensure the National Institute for Animal Agriculture continues to meet its mission, the board of directors adopted a new strategic plan earlier this year. The board adopted the NIAA 2024 – 2026 Strategic Plan during their January meeting. “Fellow board members and I are looking forward to implementing these new strategic pillars and building on achievements from the past four years,” says Dr. Eric Moore, NIAA Chair. The strategic plan focuses on four pillars. The first is Convening: NIAA is the top forum for convening diverse thought leaders in animal ag. Number two is Leadership Development which empowers leaders to positively affect the future of animal agriculture. Three is Communications and Marketing which disseminates resources to the industry. The fourth is Fostering Innovation in Animal Agriculture, which includes facilitating awareness of innovative technologies and practices that are economically viable and scientifically sound to improve the profitability and sustainability of animal agriculture. *********************************************************************************** Favorite Super Bowl Snacks The Super Bowl is on Sunday and will be watched by approximately 113 million people. Food is a big part of Super Bowl parties, and Frito-Lay’s Super Bowl Snack Index has some interesting food trends. Seventy percent of experienced hosts begin gearing up by planning meals, and 51 percent start preparations at least a week early. Three in five guests admit the promise of top-notch food is the deciding factor in which Super Bowl party they attend. It’s particularly true in 77 percent of the under-40 crowd. Potlucks prevail as the preferred party format at 67 percent, highlighting the popularity of collaborative celebrations over host-provided fare. Salsa (27 percent), French Onion (21 percent), and Queso (20 percent) are the top three dips. While salsa steals the spotlight among Gen Z, Millennials, and Gen X dippers, Baby Boomers prefer French Onion. Thirty-five percent of consumers integrate their favorite snacks into their meals.
| Rural Advocate News | Friday February 9, 2024 |
Friday Watch List Markets There are no significant reports Friday and markets in China are closed until Feb 19 for the Lunar New Year. Traders will sort through Thursday's estimates from USDA and Conab and keep watch over South American weather. Traders will also monitor the latest rise in oil prices and tensions in the Middle East. Weather A system that went across the north on Thursday stalled a cold front from Kansas to Michigan for Friday morning. That front and areas a bit to the south will light up with showers throughout the day while light snow flies across the far north. Despite colder temperatures than earlier this week, temperatures behind the cold front are still higher than normal.
| Rural Advocate News | Thursday February 8, 2024 |
USDA Predicts Large Decline in Farm Income USDA’s Economic Research Service forecasts that U.S. net cash farm income will decrease by $42.2 billion, or 25.8 percent, to $121.7 billion in 2024 in inflation-adjusted dollars. This is after net farm cash income decreased in 2023 by a forecast of $50.2 billion to $163.9 billion. Net cash farm income is defined as gross cash income minus cash expenses. Net farm income is forecast to decrease by $43.1 billion to $116.1 billion from 2023 to 2024. Net farm income is a broader measure of farm sector profitability that incorporates noncash items, including changes in inventories, economic depreciation, and gross imputed rental income. Cash receipts for farm commodities are projected to fall by $32.2 billion to $485.5 billion in 2024. Meanwhile, production expenses are expected to increase by $7.2 billion, or 1.6 percent, to $455.1 billion in 2024. Also, total commodity insurance indemnity payments are forecasted to fall by $1.5 billion in 2024, and direct government payments to farmers are projected to fall by $2.2 billion from 2023 levels to $10.2 billion in 2024. *********************************************************************************** Federal Judge Vacates Dicamba Registrations A federal judge this week vacated the 2020 dicamba registrations by the Environmental Protection Agency. The ruling in the U.S. District Court for the District of Arizona leaves farmers without options to use dicamba in the upcoming growing season. Affected products include Bayer’s XtendiMax, BASF’s Engenia and Syngenta’s Tavium. In response, the North Carolina State University Extension says, "Many will panic in response to this news and scramble to switch technology." The court vacated registrations for over-the-top use of dicamba, ruling that the EPA violated the Federal Insecticide, Fungicide and Rodenticide Act’s public input requirement before its approval. Proponents called the ruling a “vital victory for farmers and the environment.” The Center for Biological Diversity claims, “Endangered butterflies and bee populations will keep tanking if the EPA keeps twisting itself into a pretzel to approve this product just to appease the pesticide industry.” Crop protection companies are assessing the situation to find a path forward for dicamba. *********************************************************************************** House Democrats Draw Lines on Farm Bill Priorities House Agriculture Committee Democrats published a memo Wednesday laying out the principles the next farm bill should include. The principles outline the requests needed to win support of the House Democratic Caucus, however, draw hard lines against proposals from Republicans. The principles are distilled from farm bill priorities submitted by Democratic Members across the Caucus and represent the shared values of House Democrats, including protecting Inflation Reduction Act climate investments and SNAP. Ranking member David Scott of Georgia says, "After months of Republican discord and disorder delaying the passage of the farm bill, the principles document presents an honest assessment of where House Democrats are on farm bill policy." Scott believes the principles offer Republicans an "unambiguous and straightforward path to passing a strong, effective, and bipartisan farm bill." According to the Democratic principles, the farm bill must reduce hunger, strengthen America's farmers, and invest in sustainable agriculture, among other issues. *********************************************************************************** TFI: Tightening of Air Standards will Hamper Fertilizer Production The Fertilizer Institute Wednesday expressed alarm with the Environmental Protection Agency’s lowering of the National Ambient Air Quality Standards for fine particulate matter. According to TFI, the change will lead to permitting gridlock across much of the country, negatively impacting economic growth and fertilizer production. TFI President and CEO Corey Rosenbusch says, "At a time when the need to strengthen the domestic fertilizer industry has been made clear by multiple ongoing global crises and echoed by the Biden Administration, now is not the time to hamstring fertilizer production." The standards have significantly curtailed air pollution nationwide, but a major challenge for industries arises as those levels are progressively lowered. Despite ongoing technological improvements, industries reach a threshold where additional air quality improvements become more and more unfeasible under stricter standards, especially as 84 percent of current PM2.5 emissions originate from non-industrial sources. TFI claims PM2.5 emissions have declined nearly 40 percent over the past twenty years and continue to decrease. *********************************************************************************** Corn Farmers Caution Administration over Electric Vehicles A letter signed by more than 3,400 farmers was sent to President Biden Wednesday expressing concern over the administration's focus on electric vehicles. Specifically, the prioritization of electric vehicles over biofuels, such as corn ethanol, as it works to drastically lower the nation's greenhouse gas emissions. The letter says, "If we are going to address climate change and meet our sustainability goals, we are going to have to take a multi-pronged approach, that includes tapping into higher levels of biofuels." The letter, which drew thousands of signatures in less than a week, comes as the Environmental Protection Agency prepares to release its light- and medium-duty vehicle tailpipe emissions standards for 2027-2032. A recent survey, sponsored by the National Corn Growers Association shows Americans have concerns on a range of issues involving electric vehicles. In the letter, the farmers said it could take years before EVs become popular with consumers, which means the administration must expand its focus and efforts to address greenhouse gasses with solutions that are available now. *********************************************************************************** USDA Identifies 2024 McGovern-Dole Priority Countries The Department of Agriculture this week identified priority countries for new McGovern-Dole cooperative agreements. The McGovern-Dole International Food for Education and Child Nutrition Program is the largest global donor to school feeding efforts. The program provides U.S. agricultural commodities, funding, and technical assistance to reduce hunger, support nutrition, and improve literacy and primary education around the world. The McGovern-Dole Program is also an integral part in advancing U.S. diplomatic interests and strengthening alliances. For Fiscal Year 2024, USDA has identified priority countries as Angola, Bangladesh, El Salvador, Ethiopia, Guatemala, GuineaBissau, Laos, Malawi, and Rwanda. The priority countries have demonstrated significant need, a national government commitment to school feeding programs, and shared views on global food security, agricultural sustainability, and key international initiatives. Each of the cooperative agreement projects will be approximately five years in duration. When available, the fiscal year 2024 Notice of Funding Opportunity and information on how to apply will be published on Grants.gov.
| Rural Advocate News | Thursday February 8, 2024 |
Thursday Watch List Markets USDA's weekly export sales report is due at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. Statistics Canada releases December 31 stocks estimates at 8 a.m., followed by the Energy Department's report on natural gas storage at 9:30 a.m. USDA's WASDE report will be out at 11 a.m. with DTN's WASDE webinar at 12:30 p.m. Weather A storm system in the Northern Plains will move into Ontario by Thursday night, dragging a cold front through the Midwest that will produce some showers and thunderstorms. Snow continues on the backside of the low across the Northern Plains and Canadian Prairies. Breezy winds will accompany the system across the Plains and Midwest. Temperatures behind the front are dropping, but are still warm for February.
| Rural Advocate News | Wednesday February 7, 2024 |
Wednesday Watch List Markets The U.S. Census Bureau will release the U.S. trade deficit for December at 7:30 a.m. CST Wednesday, allowing USDA to have export sales data available later Wednesday morning. The Energy Department's weekly energy inventory report follows at 9:30 a.m. Traders will continue to monitor South American weather and may be cautious ahead of Thursday's WASDE report. Weather A system is moving out of the West and into the Northern Plains on Wednesday and that will be bringing a mix of rain and snow to the Northern Plains, increasing Wednesday evening. Isolated showers and thunderstorms will develop farther south as well as some breezy conditions. Temperatures ahead of the system continue to be very warm and record-breaking in some areas of the Upper Midwest.
| Rural Advocate News | Wednesday February 7, 2024 |
Market Prices, Input Costs, Pushing Expectations Lower Farmer sentiment took a downturn at the start of 2024 as the January Purdue University-CME Group Ag Economy Barometer Index fell to a reading of 106, eight points below a month earlier. Compared to year-end, producers had a more negative outlook of their farms' current situation along with a weakened outlook for the future. The Current Conditions Index fell nine points, and the Future Expectations Index dropped seven points, both compared to December. Anticipated lower farm income in 2024 significantly influenced the decline across all indices, evident in the Farm Financial Performance Index registering at 85, 12 points lower than a month earlier. The percentage of producers expecting weaker financial performance rose from 20 percent in December to 31 percent in January, while those expecting incomes to be about the same fell from 63 percent to 53 percent. The combination of high input costs and declining commodity prices generated a weaker financial performance outlook for 2024, according to the survey results. *********************************************************************************** Carbon Alliance Welcomes POET Pipeline Partnership The American Carbon Alliance welcomes last week’s partnership announcement between POET and the Summit Carbon pipeline. POET will connect its biofuel plants to the carbon pipeline, creating new agricultural markets and supporting rural communities—to capture the value of the biogenic CO2 from the bioethanol production process. American Carbon Alliance CEO Tom Buis says, “This partnership will move the carbon capture and sequestration process along, creating a positive ripple effect throughout Midwest communities, for farmers and producers, local economies, and the global economy as a whole.” The partnership strategically expands the carbon opportunity across the Midwest by incorporating POET’s 12 facilities in Iowa and five facilities in South Dakota into the Summit project. The addition will facilitate the capture, transportation, and permanent storage of 4.7 million metric tons of CO2 annually from the 17 POET bioprocessing plants. The American Carbon Alliance seeks to strengthen America's agricultural economy, ensure a future marketplace for American-produced liquid fuel, and improve the environment for all. *********************************************************************************** National Grange Voices Snake River Dam Removal Concerns The National Grange recently penned a letter to lawmakers expressing concerns over proposals to remove dams along the Snake River in Washington state. The letter alleges that dam removals would "totally disrupt an entire rural region of our country that depends upon this infrastructure for clean electrical power, agricultural irrigation, transportation, flood control, recreation, and jobs.” The National Grange believes that any plan to remove any dam in the Columbia/Snake River System must include an equitable and robust economic transition plan. The Grange is a social organization that encourages families to band together to promote the economic and political well-being of the community and agriculture, and includes more than 140,000 members. The letter follows legislation introduced last month regarding the issue by Representative Dan Newhouse, a Washington state Republican. The Defending Against Manipulative Negotiators Act would prohibit the use of federal funds from being used in breaching or altering the Lower Snake River Dams and prohibit the implementation of the Columbia Basin Restoration Initiative. *********************************************************************************** NCC Highlights Chicken Industry’s Efforts to Reduce Food Waste The National Chicken Council recently outlined how chicken producers reduce food waste, recycle byproducts and utilize products that would otherwise be destined for landfills. The comments were in response to the Environmental Protection Agency's proposed Draft National Strategy for Reducing Food Loss and Waste and Recycling Organics. In its comments, the council emphasized several important points and areas for enhancing the National Strategy, including the use of byproducts and rendering, along with automation and transportation improvement efforts. Several current and pending regulatory policies either do or would contribute to food waste in the chicken industry, according to the organization. The first is for the FDA to allow surplus hatchery eggs into the breaking egg market, which would reduce waste and decrease costs. The second is a proposed Salmonella Framework, which is being drafted with the goal of improving food safety –– but is not based on scientific data nor is it associated with any known public health outcomes, according to NCC. *********************************************************************************** Restaurant Industry Sales Forecast to Set $1.1 Trillion Record in 2024 Restaurant sales are forecast to exceed $1.1 trillion this year, marking a new milestone for the industry that will employ over 15.7 million people in the United States by the end of 2024. The National Restaurant Association released its 2024 2024 State of the Restaurant Industry Report Tuesday. The report finds restaurant operators are cautiously optimistic about the year ahead, with nearly eight in ten predicting their sales will increase or hold steady from 2023 levels. However, challenges still exist for the sector. Consumers will notice menu changes more frequently, and it's often the result of increased food costs. In the past year, operators report needing to find new suppliers, removing items from their menus, adjusting portion sizes or substituting lower cost items all in response to elevated food prices. The availability of food items also impacted menu composition, with more than three-quarters of operators saying their restaurant experienced supply delays or shortages of key food or beverage items in 2023. *********************************************************************************** Mobile App Restaurant Orders Remain Popular Following Pandemic Mobile app ordering at quick service restaurants remains popular following the COVID-19 pandemic. USDA’s Economic Research Service released data Tuesday showing consumer spending trends on carryout and delivery from quick-service restaurants by mobile application from December 2019–February 2020 through October–December 2022. In June–August 2020, carryout spending at quick-service restaurants via restaurant-specific apps doubled from pre-pandemic levels, and spending on delivery via third-party apps more than tripled. Third-party apps typically offer food from a variety of restaurants, while the restaurant or establishment operates restaurant-specific apps. App spending on carryout and delivery peaked in March–May 2021, reaching a total of $4.4 billion, with third-party app delivery and restaurant-specific app carryout spending each reaching about $1.6 billion. Most recently, total app spending on both carryout and delivery reached roughly $3.9 billion, where restaurant-specific carryout spending and third-party app delivery spending accounted for $1.6 and $1.4 billion, respectively.
| Rural Advocate News | Tuesday February 6, 2024 |
Industry Leader Northey Passes Bill Northey, a long-time agriculture industry figure, and former USDA official in the Trump administration, has died. The 64- year-old was serving as the CEO of the Agribusiness Association of Iowa. Northey grew up on an Iowa family farm. He has served as President of the National Corn Growers Association, three terms as the Iowa Agriculture Secretary, and as USDA Farm Production and Conservation undersecretary during the Trump administration. Senator Chuck Grassley, an Iowa Republican, commented, “Today the Iowa farm community lost a giant. Bill Northey was a dear friend and fierce advocate for the family farmer.” Iowa Governor Kim Reynolds added, “Bill understood well our responsibility to be good stewards of the land and exemplified that calling throughout his career.” Reynolds has ordered all flags in Iowa to be lowered to half-staff immediately and remain at half-staff until sunset on the day of Northey’s funeral and interment. *********************************************************************************** USDA Celebrates 10 Years of Climate Hubs This week marks ten years since the Department of Agriculture created regional Climate Hubs. The hubs were established to help agricultural producers and rural communities make climate-informed decisions. Agriculture Secretary Tom Vilsack says, "Today, as those risks are increasingly prevalent across the nation and the globe, the need for science-based climate information and assistance is more important than ever." The Climate Hubs are an important piece of USDA's agenda to address climate change, complementing investments of $19.5 billion through the Inflation Reduction Act, the largest-ever climate investment, to help producers adopt climate-smart practices. Originally, ten regional locations were established across the United States. In May 2023, an International Climate Hub was added to share best practices, collaborate with international partners and improve the world's ability to mitigate and adapt to climate. Today, the Climate Hubs form a network of more than 120 climate researchers and communicators who work across the USDA and with partners to support climate-informed decisions. *********************************************************************************** FWS Rejects Call to List Wolves in Rocky Mountain States under ESA The U.S. Fish and Wildlife Service recently denied a request to list wolves under the Endangered Species Act in Rocky Mountain states. After an extensive assessment, the Service announced a not warranted finding for two petitions to list gray wolves under the ESA in the Northern Rocky Mountains and the Western United States. Gray wolves are listed under the ESA as endangered in 44 states, threatened in Minnesota, and under state jurisdiction in Idaho, Montana, Wyoming, and portions of eastern Oregon and Washington. Based on the latest data as of the end of 2022, there were approximately 2,797 wolves distributed across at least 286 packs in seven states in the Western United States. This population size and widespread distribution contribute to the resiliency and redundancy of wolves in this region. Environmental groups are weighing options for what may be next. Erik Molvar of the Western Watersheds Project says, "It is obvious that wolves don’t have adequate regulatory mechanisms to protect them in Montana, Idaho, and Wyoming, where they are being targeted for extermination by state governments.” *********************************************************************************** Missouri River Runoff Below Normal The updated 2024 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, continues to be below average. January runoff in the Missouri River Basin above Sioux City was 0.4 million acre-feet, 56 percent of average. Runoff was well-below-average due to much-below-normal temperatures over the whole Missouri River Basin and below-normal precipitation over most of the upper basin. John Remus of the U.S. Army Corps of Engineers says, "The runoff into the reservoir system was well-below average for January," adding, "This fact in conjunction with the below-average plains and mountain snowpack indicates a below-normal runoff year for the basin.” The 2024 calendar year runoff forecast above Sioux City is 18.8-million-acre feet, 73 percent of average. To conserve water in the system, releases from Gavins Point Dam are scheduled to be 13,000 cubic feet per second this winter while still serving the needs of the municipal, industrial and powerplant water intakes along the lower river. *********************************************************************************** Digital Agriculture Research and Extension Center Launched The University of Missouri Monday announced the launch of the Digital Agriculture Research and Extension Center. The center aims to help farmers move toward a future of sustainable agriculture by leveraging digital technologies and artificial intelligence for increased productivity, sustainability and profitability. A spokesperson for the effort says, “This is the future of farming in Missouri and elsewhere, and people are looking to us as a proven academic leader in this space.” The effort was formed by a partnership between the University’s College of Agriculture, Food and Natural Resources, the MU Extension service, and the USDA’s Agricultural Research Service. The center will explore key areas in agriculture, such as crop production, soil health, precision livestock farming, and engineering innovations through research by faculty and students and collaboration with industry partners and agencies. Adoption of any new technology takes time, and the center hopes to build trust and confidence in farmers and other stakeholders by being proactive in its education and outreach efforts. *********************************************************************************** Checkoff Partnership Introduces Hot Chocolate Milk Program in Schools A dairy checkoff partnership is putting hot chocolate milk into the hands of students during a pilot with a leading school foodservice company. National Dairy Council and Chartwells K12, which serves more than two million meals daily at 700 U.S. school districts, have launched the Hot Chocolate Milk program in 58 schools. The pilot, which will run through the end of the school year, features chocolate milk – with toppings such as cinnamon and peppermint – served hot during breakfast and lunch. Lisa Hatch, vice president of business development for NDC's school channel, said the smoothie program's success led to a "what's the next big thing?" discussion between the partners. They focused on hot chocolate, a global market valued at $3.8 billion in 2022 and expected to grow to $5.77 billion by 2030. Schools participating in the pilot program received a Hot Chocolate Milk kit. The kit includes a transport cart with branded panels, an insulated beverage dispenser, a digital thermometer and more.
| Rural Advocate News | Tuesday February 6, 2024 |
Tuesday Watch List Markets Traders will keep an eye on South America's weather forecasts and any updates of soybean harvest or corn planting progress. There are no significant reports scheduled for Tuesday and grain traders may be a bit cautious ahead of Thursday's WASDE report. U.S. earnings season and military actions in the Middle East are two topics also getting traders' attention. Weather A major storm system continues to build in the Southwest on Tuesday, after dumping huge amounts of precipitation over California the last couple of days. East of the Rockies, it is quiet and very warm in anticipation of the coming storm that will move through with several impulses starting Wednesday.
| Rural Advocate News | Monday February 5, 2024 |
CattleFax Forecasts Profitability, Herd Expansion Ahead The CattleFax Outlook Seminar at the 2024 Cattle Industry Convention and NCBA Trade Show in Florida shared expert market and weather analytics last week. The smallest beef cow inventory in the last 50 years, coupled with historically strong demand, led to the highest average fed cattle and calf prices in 2023. As reduced cattle numbers and beef production continue over the next three years, leverage and profitability will continue to favor cattle producers. Despite record prices, an expansion will likely be delayed once again. Lingering drought, high input costs, limited labor availability, high interest rates, and market uncertainty all serve as headwinds against growing the cow herd. Cow and bull slaughter is forecast to be 6.5 million head in 2024, down around 800,000 head from 2023. “Though cattle inventories may stay elevated for a few months, they are expected to decline significantly through the second half of 2024,” says Kevin Good of CattleFax. *********************************************************************************** USDA Rule Amends Certain FMMOs The USDA published a final rule that amends the transportation credit balancing fund provisions in the Appalachian and Southeast Federal Milk Marketing Orders. It also establishes distributing plant delivery credits in the Appalachian, Florida, and Southeast FMMOs. The final rule is a result of a hearing held February 28-March 2, 2023, in Tennessee. The hearing highlighted a long-standing milk deficit problem in the three southeastern orders and its impact on producers, cooperatives, and handlers serving the markets. The final rule implements a number of proposals to address this chronic issue and makes minor clarifying changes to the provisions based on public comments received. Among some of the changes, the rule updates the components of the mileage rate calculation and increases the maximum assessment rates on Class I Milk. The amendments will be effective for milk marketed on or after March 1, 2024. The final rule was published on February 1, 2024. *********************************************************************************** Soy Exports Add Billions to the U.S. Economy America’s soy complex exports added $39.8 billion to the U.S. economy in marketing year 2022-2023 on a volume of 67.6 million metric tons. The shining star was U.S. soybean meal exports broke records for both volume and value at 13.2 million metric tons and $6.91 billion, respectively. “America’s soy exports in marketing year 2022-2023 were nothing short of extraordinary,” says United Soybean Board Chair Steven Reinhard. “A standout achievement was the record-breaking performance of soybean meal exports, reaching unprecedented volume and value levels.” Increased demand from both Colombia and Ecuador boosted U.S. soybean meal exports by 15 percent and 36 percent, respectively, above their five-year averages. Meanwhile, increased volume and higher prices saw U.S. soybean meal exports increase in value by 39 percent over the last five years. Despite persistent global challenges to international businesses, U.S. whole soybean exports hit 54.2 MMT and kept pace with the previous five-year average. *********************************************************************************** Soybean Crush Rises But Short of Predictions USDA data shows the U.S. soybean crush rose month-to-month but missed expectations. Processors crushed 204 million bushels of soybeans in December, up from 200 million a month earlier. The agency’s report says that’s up from the 187 million bushels processed in December 2022 but is still down from the 206 million forecast before the report went public. Crude oil produced from the crush rose to 2.38 billion pounds, up two percent from November and eight percent from the same month a year earlier. Iowa was by far the biggest crusher of soybeans at approximately 49.3 million bushels, with Illinois second at 25.4 million bushels. The states combined for 37 percent of the soybeans crushed in the U.S. during December. About 51.4 million bushels were crushed in the north and east region, which includes Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia. Processors in the north-central region crushed 37 million bushels of soybeans. *********************************************************************************** America’s Biggest Landowners The Land Report Research Team issued a report detailing who are America’s largest landowners. The “Land Report 100” shows that as of 2021, America’s largest landowner is named Red Emmerson. He and his family own just over 2.4 million acres in California, Oregon, and Washington through their timber products company, Sierra Pacific Industries. They surpassed Liberty Media Chairman John Malone’s 2.2 million acres. CNN founder Ted Turner is America’s third biggest landowner with two million acres in the Southeast, Great Plains, and across the West. The Lane Report 100 research team analyzes transactions and scours records to determine who are America’s leading landowners. That’s how they broke the news in 2020 that Microsoft co-founder Bill Gates was America’s largest farmland owner with more than 260,000 acres. They used the same methodology to identify the founder of the Shanda Investment Group as the owner of almost 200,000 acres of Oregon timberland this year. *********************************************************************************** Lamb Lovers Month is Back The American Lamb Board kicked off Lamb Lover’s Month in February with an exciting campaign titled “Show Us Your Chops.” It invites consumers to enjoy savory lamb chops at their favorite restaurants or cook their favorite recipes at home. The promotion features rack and loin chop recipes to help consumers create a romantic date night or a special dinner with friends or family featuring delicious American lamb. Consumers are invited to share their photos of their lamb chops at a restaurant or at home on the ALB consumer website or social media with the hashtag #showusyourchops. The contest will be promoted through social media advertising and sponsored blogger content throughout February. “While Lamb Lovers Month has become a tradition for ALB, it’s also a very effective promotion for reaching new consumers with recipes and information about American lamb to expand usage beyond the traditional holidays,” says Jeff Ebert, ALB chairman.
| Rural Advocate News | Monday February 5, 2024 |
Top 5 Things to Watch - WASDE, NASDA and Other Acronyms 1. WASDE Thursday: USDA's World Agricultural Supply and Demand Estimates and Crop Production reports are due out at 11 a.m. Our preview of the report will hit Tuesday or Wednesday, depending on the release of analyst estimates. On Thursday we will have WASDE numbers immediately after the reports are released, followed by updates with commentary and market reactions throughout the morning 2. Warmth hangs in: The unseasonably warm weather will continue to eat away at the snowpack in the Midwest through this week. Temperatures will be well-above normal east of the Rockies and cooler in the West through next weekend. Another storm will move out of the West and into the Plains during the middle of the week with another loading up in the Southwest for late week and weekend. Models differ on the development and impact of these two storms, so stay tuned through the week. Y 3. State ag conversations: We'll cover the annual meeting of the National Association of State Departments of Agriculture, happening in Washington, D.C. This meeting has become the place where potential ag policies come to gather steam. The farm bill, labor and immigration issues and food safety are all on the agenda. 4. Eyes on South America: It's become a bit repetitive, but with grains markets softening we continue to watch how the South American crops are developing. Updates on that will possibly supersede the WASDE numbers in terms of market influence. 5. Economic reports to watch: Monday, the S & P Services PMI report is at 8:45 a.m. Weekly grain inspections are out at 10 a.m.; at 2 p.m. the Dairy Products report hits. On Wednesday we'll watch for U.S. trade deficit numbers at 7:30 a.m., while at 10 a.m. the EAI's weekly petroleum reports are out, including ethanol and gasoline statistics. At 2 p.m. both the Consumer Credit report and broiler hatchery reports are released. On Thursday, both the U.S. export sales report and Initial Jobless Claims will be out at 7:30 a.m. Wholesale Inventories reports are at 9 a.m., the weekly Economic Index will be out at 10:30 a.m., and of course the February WASDE hits at 11 a.m. Friday sees with the CPI seasonal factor revisions report out at 7:30 a.m.
| Rural Advocate News | Monday February 5, 2024 |
Monday Watch List Markets Back from the weekend, traders will pay close attention to South American weather and news from the Middle East. USDA's weekly export inspections is set for 10 a.m. CST Monday. Traders will also look forward to USDA's next WASDE report, due out Thursday at 11 a.m. Weather A storm system from the weekend continues to spin around Florida, but areas east of the Rockies will be quiet on Monday. All the action is out in the West where another storm system is pushing through the region. Eventually, that storm will move through the country this week with multiple rounds of precipitation. It continues to be very warm ahead of these storms.
| Rural Advocate News | Friday February 2, 2024 |
New Poll Suggests Ag Economic Downturn A new poll of agricultural economists by Farm Journal shows most expect lower commodity prices, along with the outlook for higher costs, to weigh on the agriculture industry in 2024. Farm Journal has partnered with the University of Missouri to create the Ag Economists' Monthly Monitor. University of Missouri agricultural economist Scott Brown says, “If we continue down the path that we started with the January estimates, perhaps we're telling 2024 to be a less positive story than we would have just a few months ago.” Ag economists' forecast for prices of all crops and livestock shifted lower compared to the December survey, signaling net farm income could also fall more than originally anticipated. The January survey found economists' views on net farm income also took a turn, with the survey average falling to $135 billion for 2024. However, ag economists think relatively strong balance sheets and working capital could provide a cushion for 2024 with no major concerns about immediate farm solvency issues. *********************************************************************************** USDA Report Shows Cattle Inventory Declines USDA's National Agricultural Statistics Service this week released the Cattle report showing a two percent decline in U.S. cattle inventory. The report shows 87.2 million head of cattle and calves on U.S. farms as of January 1, 2024. Of the 87.2 million head inventory, all cows and heifers that have calved totaled 37.6 million. There are 28.2 million beef cows in the United States, down two percent from last year. The number of milk cows in the United States decreased slightly to 9.36 million. The U.S. calf crop was estimated at 33.6 million head, down two percent from 2022. All cattle on feed were at 14.4 million head, up two percent from 2023. To obtain an accurate measurement of the current state of the U.S. cattle industry, NASS surveyed approximately 36,300 operators across the nation during the first half of January. Surveyed producers were asked to report their cattle inventories as of January 1, 2024, and calf crop for the entire year of 2023. *********************************************************************************** January 1 Sheep and Lambs Inventory Down 2% USDA’s Sheep and Goat’s report released this week shows all sheep and lambs inventory in the United States on January 1, 2024 totaled 5.03 million head, down two percent from last year. Breeding sheep inventory at 3.67 million head on January 1, 2024, decreased two percent from 3.74 million head in 2023. Ewes one-year-old and older, at 2.87 million head, were two percent below last year. Market sheep and lambs totaled 1.36 million head, down two percent, and market lambs comprised 94 percent of the total market inventory. Market sheep comprised the remaining six percent of the total market inventory. The 2023 lamb crop of 3.03 million head was down two percent from 2022, and the 2023 lambing rate was 103 lambs per 100 ewes one-year-old and older on January 1, 2023, down two percent from 2022. All goats and kids inventory in the United States on January 1, 2024, totaled 2.47 million head, down two percent from 2023. *********************************************************************************** USDA Resource to Help Poultry Contracting and Tournaments Compliance USDA's Agricultural Marketing Service has posted a set of Frequently Asked Questions on its website to provide a resource to assist stakeholders in complying with the Transparency in Poultry Grower Contracting and Tournaments Final Rule by February 12, 2024. The FAQ is posted on the Transparency in Poultry Grower Contracting and Tournaments webpage. USDA published the final rule in the Federal Register November 28, 2023. The final rule, published under the Packers & Stockyards Act, requires Live Poultry Dealers – typically large processing companies – to provide poultry growers with whom they contract to raise birds key information about terms of their agreements. The final rule also requires additional disclosures by those engaged in the production of broilers who use poultry grower ranking systems to determine settlement payments for broiler growers. More information about the final rule is available on the Transparency in Poultry Grower Contracting and Tournaments webpage. *********************************************************************************** AVMA Plans Annual Legislative Fly-in Veterinarians will visit Capitol Hill next Tuesday to discuss legislative priorities with lawmakers. As part of the American Veterinary Medical Association's annual legislative fly-in, advocates will urge congressional offices to support and cosponsor the Rural Veterinary Workforce Act. AVMA President Dr. Rena Carlson says, "We need to do more to attract and retain veterinarians in rural and underserved areas, and the Rural Veterinary Workforce Act will go a long way to address those needs," The AVMA-endorsed Rural Veterinary Workforce Act would end federal taxation on the Veterinary Medicine Loan Repayment Program. This action would enable more veterinarians to participate in a program that offers up to $25,000 a year for student loan repayment in exchange for service in Department of Agriculture-designated Veterinarian Shortage Situations. AVMA is also seeking support for the Healthy Dog Importation Act within the next Farm Bill, which the group says would decrease the chances of future disease outbreaks from imported dogs. *********************************************************************************** TSCRA Launches Foundation to Support Land and Livestock Stewards Texas & Southwestern Cattle Raisers Association, the oldest and largest livestock association in the Southwest, Thursday announced the TSCRA Leadership Development Foundation. The foundation is a new 501(c)(3) nonprofit organization to develop future land and livestock stewards and leaders. The TSCRA Leadership Development Foundation will support high school and college programs, internships, young professional development opportunities and grant programs. TSCRA President and Foundation Chairman Arthur Uhl says, “Developing and supporting future land and livestock stewards and leaders is critical to our nation’s future.” Uhl adds, “We must develop and equip a diverse base of future leaders to address modern challenges within the industry and ensure ranching, wildlife management, and land stewardship thrives and continues to benefit and provide for our communities.” Anyone wishing to support the TSCRA Leadership Development Foundation is encouraged to visit tscra.org/ to make a tax-deductible donation. TSCRA has more than 28,000 individuals and businesses as members that contribute to beef production and stewardship of natural resources throughout the Southwest.
| Rural Advocate News | Friday February 2, 2024 |
Friday Watch List Markets U.S. nonfarm payrolls and the unemployment rate for January will be released at 7:30 a.m. CST Friday. U.S. factory orders for December and the University of Michigan's consumer sentiment index for January follow at 9 a.m. Traders will continue to keep watch over South American weather and events in the Middle East as the U.S. is expected to retaliate against pro-Iranian targets. Weather Warm temperatures continue to be in place across most of the country and clouds in western Pennsylvania mean an end to winter from our favorite rodent meteorologist. Still, a strong storm in the West will move into the Southern Plains later Friday, producing areas of showers and thunderstorms. The precipitation from this storm will spread through much of the country outside of the Midwest.
| Rural Advocate News | Thursday February 1, 2024 |
NCBA Releases 2024 Policy Priorities The National Cattlemen’s Beef Association’s Executive Committee approved the organization’s policy priorities at the 2024 Cattle Industry Convention and NCBA Trade Show. This year’s priorities focus on advocating for the reauthorization of the Farm Bill, protecting cattle producers from federal regulatory overreach, and defending the U.S. cattle industry against external attacks. NCBA President-Elect Mark Eisele says, "NCBA will continue pushing for passage of a Farm Bill that includes key animal health and voluntary conservation provisions, as well as hold the line against all federal policies that could damage the livelihoods of U.S. cattle producers." Other priorities include the fight against misguided Endangered Species Act rules and any expansion of bureaucratic red tape under the National Environmental Policy Act. Additionally, NCBA wants to preserve family farms and ranches for future generations by advocating for essential tax relief for cattle producers. Learn more and find the full list of 2024 policy priorities at ncba.org. *********************************************************************************** Trade Caucus Presents Opportunities for Agriculture Lawmakers in the House of Representative’s Wednesday launched a new Agricultural Trade Caucus. The effort seeks to advance and promote policies vital to U.S. agriculture, including boosting agricultural exports, facilitating food and agriculture trade, and knocking down unnecessary trade barriers. The caucus includes Republicans Adrain Smith of Nebraska, Dusty Johnson of South Dakota, and California Democrats Jim Costa and Jimmy Pennetta. In the announcement, Penetta says, “Congress needs to be more active in promoting trade agreements that will keep American producers competitive and empower them to feed the world.” The new caucus will work to solidify support for trade policies that benefit farmers, ranchers, producers, rural communities, and all those along our food and agricultural supply chains. American Farm Bureau Federation President Zippy Duvall responded, “AFBF appreciates House lawmakers for coming together in a bipartisan manner to form an agriculture trade caucus,” adding, “We have a real opportunity to showcase American agriculture on the global stage.” *********************************************************************************** USDA Releases 2022 Pesticide Data Program Annual Summary The Department of Agriculture this week published the 2022 Pesticide Data Program Annual Summary. The summary shows that over 99 percent of the samples tested had pesticide residues below benchmark levels established by the Environmental Protection Agency. The tests were conducted on 10,665 samples from 23 commodities, including fresh and processed fruits and vegetables, dairy, nuts, and grains. The summary is a national pesticide residue monitoring program that tests various domestic and imported foods, with a strong focus on foods consumed by infants and children. USDA and EPA work together each year to identify foods to be tested on a rotating basis, and USDA partners with cooperating state agencies to collect and analyze pesticide residue levels on the selected food commodities. EPA relies on the data to conduct dietary risk assessments and to ensure that any pesticide residues in foods remain at or below levels that EPA has set. *********************************************************************************** LFP Payments Concentrated in Western and Central US A new analysis from USDA’s Economic Research Service shows Livestock Forage Disaster Program are concentrated in the Western and Central United States. USDA found that between 2008 and 2022, the program disbursed more than $12 billion of payments to livestock producers. Counties with the largest aggregate payments per 1,000 head of livestock are concentrated primarily in the Western, Southern, and Central United States, where drought conditions are generally more severe and common. About 20 percent of counties in the continental United States received no LFP payments between 2008 and 2022. These counties are primarily located in urban regions and the relatively more humid Eastern United States. USDA provides payments to livestock producers whose pastures and rangeland are impacted by drought through the Livestock Forage Disaster Program. The program was established by the 2008 Farm Bill and uses eligibility criteria based on county-level drought conditions reported by the U.S. Drought Monitor. *********************************************************************************** Foremost Farms Joins Vanguard Renewables Strategic Alliance Vanguard Renewables announced the addition of Foremost Farms USA to the Farm Powered Strategic Alliance this week. The strategic partnership marks a significant milestone in pursuing sustainable organic waste reduction and renewable energy generation within the dairy industry, according to Vanguard Renewables CEO Neil Smith. Speaking of Foremost Farms, Smith says, "Their members' commitment to sustainable farming practices is helping to create a more sustainable future for the dairy industry, and their desire to work with and learn from like-minded organizations to explore solutions for food waste aligns with our mission." By joining the alliance, Foremost Farms aims to further strengthen its dedication to sustainable practices and support generational dairy farmers across America. The Farm Powered Strategic Alliance is described as a collaborative initiative focused on driving systemic change, dedicated to promoting sustainable organic waste reduction. Vanguard Renewables partners with food and beverage manufacturers to recycle their inedible food waste via Farm Powered anaerobic digestion, which converts organic waste into renewable natural gas. *********************************************************************************** Americans to Eat 1.45 Billion Chicken Wings for the Big Game With the second biggest eating day of the year after Thanksgiving upon us, there’s no hotter time for chicken wings. According to the National Chicken Council’s 2024 Wing Report, Americans will devour 1.45 billion wings while watching Kansas City and San Francisco battle for the championship trophy. National Chicken Council spokesperson Tom Super says, “Sure, you can have your chips, your guacamole, your pizza. But when it comes to menus next Sunday, wings rule the roost.” This year’s projection is flat compared to 2023, with USDA reporting chicken production levels are slightly down from last year and wing stocks in cold storage down 13 percent in November compared to the year prior. This could explain the higher demand and, thus, the higher wholesale prices we see on wings. At the retail level, fresh chicken wing prices are down approximately five percent, and frozen wing prices are down 11 percent compared to January 2023.
| Rural Advocate News | Thursday February 1, 2024 |
Thursday Watch List Markets USDA's weekly export sales report is due at 7:30 a.m. CST, the same time as weekly U.S. jobless claims, U.S. fourth-quarter productivity and an update of the U.S. Drought Monitor. The ISM index of U.S. manufacturing is at 9 a.m., followed by the Energy Department's report on natural gas storage at 9:30 a.m. NASS's Fats and Oils report is set for 2 p.m. Weather A major winter storm continues to push into California and spread through the western states on Thursday, a significant feature to watch as it moves into the Plains for Friday. But areas east of the Rockies continue to be overall warm and quiet ahead of the storm.
| Rural Advocate News | Wednesday January 31, 2024 |
POET and Summit Announce Partnership POET Ethanol and Summit Carbon Solutions announced a partnership connecting the world’s largest biofuel producer with the world’s largest carbon capture and storage project. The collaboration will capture the value of biogenic CO2 from the bioethanol production process. The partnership strategically expands the carbon opportunity across the Midwest by incorporating POET’s 12 Iowa facilities and five South Dakota facilities into the Summit project. “As the world seeks low-carbon energy solutions, carbon capture ensures that ag-based biofuels will remain competitive for decades,” says POET CEO Jeff Broin. “This is a tremendous opportunity to bring value to farmers, bioethanol producers, and rural communities in participating states.” Broin also believes this collaboration will unleash even more opportunities for ag and bioprocessing in the future. “This initiative is aimed at enhancing the financial profitability of our farmers and ensuring a more prosperous future for rural communities,” says Lee Blank, CEO of Summit Carbon Solutions. *********************************************************************************** New California Biofuels Plant Impacts Soybean Market The increasing use of biofuels should generate bullish vibes for agricultural commodities in the future. E-T-F Trends says plans for a biofuel plant in California could spur more investors to take a closer look at agricultural commodities. California has one of the more ambitious plans when it comes to reducing carbon emissions. Given this, the use of a biofuel plant could spur other states to follow suit. In turn, that would increase demand for agricultural commodities like soybeans and corn. A Bloomberg report confirmed that soybean oil prices in Chicago rose amid speculation that the new biofuels plant in California got the green light to begin operations in a few weeks. The plant is a former crude oil refinery that will use waste oils, fats, greases, and vegetable oils to produce an initial 800 million gallons of renewable fuels a year, including renewable diesel, renewable gasoline, and sustainable aviation fuel. *********************************************************************************** 100 Billion Miles on E15 Growth Energy released data showing American drivers recently surpassed the massive milestone of 100 billion miles driven on affordable, homegrown E15 fuel. The 15 percent biofuel blend saves drivers an average of 15 cents a gallon at the pump. In some states, amid higher fuel costs last summer, drivers saw E15 savings climb as high as 60 cents per gallon. “At Growth Energy, we’re proud to lead the charge on American-made, plant-based fuels,” says CEO Emily Skor. “Homegrown biofuels deliver value for consumers at the pump, value for American agriculture and rural communities, and value for our nation’s climate goals.” She also says they’re proud of the 100 billion miles driven on E15 and excited that consumers have access to an affordable, Earth-friendly option to fuel their travels. “There aren’t many products on the market today that allow consumers to save money and lower carbon emissions like E15,” Skor adds. *********************************************************************************** Producers Can Make USDA Loan Payments Online The USDA says most farm loan borrowers will be able to make loan payments online through the Pay My Loan feature on farmers.gov in early February. Pay My Loan is part of a broader effort by the Farm Service Agency to streamline its processes, especially for producers who may have limited time during the planting or harvest seasons to visit a local FSA office. “Farmers and ranchers have responded to some difficult challenges over the last few years, and their time is a precious commodity,” says USDA Deputy Undersecretary Xochitl (so-CHEEL) Torres Small. “Having the option to conduct business online is essential, and the Pay My Loan feature allows customers to take care of business seamlessly.” On average, local USDA centers process more than 225,000 farm loan payments each year. Pay My Loan gives most borrowers an online repayment option and relieves them from traveling to a local Service Center. *********************************************************************************** December Soy Crush Continues Streak The U.S. soybean crush likely hit 6.185 million short tons in December 2023, or 296.1 million bushels, the most for any month in recorded history. Analysts surveyed ahead of the monthly USDA report noted it would be the third straight month that the national soybean crush topped 200 million bushels as the expanding U.S. soy processing industry has been crushing larger and larger numbers of beans to meet the rising demand for vegetable oil from biofuel makers. If that December estimate gets realized, it would be up from the 200.1 million bushels crushed in November and up 10 percent from the December 2022 crush of 187.4 million bushels. But Successful Farming says last month’s estimated average daily crush rate of 6.649 million bushels would be down from a record daily pace of 6.669 million set in November, which has one less day. Crush estimates range from 203.8 million to 207 million bushels. *********************************************************************************** Soybeans and Wheat Export Inspections Decline Soybean and wheat inspections for exports declined in the week ending on January 25, while the corn total improved. USDA data says soybean inspections last week reached 889,717 metric tons, down from 1.18 million a week earlier. That’s also down from the 1.93 million tons examined during the same week last year. Wheat assessments came in at 264,666 tons, down from 315,186 tons the prior week, and well below the 446,000 tons inspected during the same period last year. Corn inspections rose to almost 902,000 tons from 746,900 the week before and 545,000 tons at the same time in 2023. Since the start of the marketing year, USDA has inspected 15.6 million metric tons of corn for export, up from 12.1 million last year. Soybean inspections now stand at 27.7 million tons, down from 36.2 million last year. Wheat inspections are at 11 million tons, down from 13.2 million last year.
| Rural Advocate News | Wednesday January 31, 2024 |
Wednesday Watch List Markets The Labor Department's employment cost index for the fourth quarter is set for 8:30 a.m. CST. The Energy Department's weekly energy inventory report is at 9:30 a.m. The Federal Reserve's rate announcement is at 1 p.m. and is expected to keep rates unchanged, but traders will be listening to any Fed comments. USDA's report of U.S. January 1 cattle inventory at 2 p.m. will get more attention than usual with a chance inventory will fall below the 2014 low of 88.5 million head, possibly the lowest number of U.S. cattle since 1952. Weather A large trough and atmospheric river event is starting to move onto the West Coast Wednesday morning. The event will be a big one that causes a storm system for Friday through the weekend farther east. Until then, it continues to be quiet and warm for much of the country with some places breaking record highs.
| Rural Advocate News | Tuesday January 30, 2024 |
Strengthening U.S. Specialty Crops Through Investments Ag Secretary Tom Vilsack announced USDA investments designed to support the U.S. specialty crops industry. The launch of the Assisting Specialty Crop Exports Initiative will provide $65 million for projects that will help the specialty crop sector increase global exports and expand access to new markets. USDA also announced $72.9 million in grant funding available to support the specialty crops industry through the Specialty Crop Grant Program. The program will fund innovative projects designed to bolster the competitiveness of the expanding specialty crops sector. Specialty crop exports totaled $24.6 billion in fiscal year 2023 and represented 13.8 percent of total U.S. agricultural exports. “Specialty crop producers feed our nation and the world with nutritious fruits, nuts, and vegetables, and they supply our communities with horticulture products,” Vilsack says. “Yet they have unique challenges and opportunities to competing in the domestic market and several barriers preventing their products from entering foreign markets.” *********************************************************************************** Hawaii Producers Hit Hard by Wildfires and High Winds The USDA’s National Agricultural Statistics Service estimates that Hawaiian producers incurred $23.1 million in economic loss and damages from wildfires and high winds in August 2023. Those losses include the reduction of agricultural sales due to damages to markets or reduced customers, reduced agritourism income between August and December, livestock deaths, damaged or destroyed crops, and property damages. Producers estimate they lost $5.2 million in sales revenue, lost $3.9 million in agritourism revenue, lost $75,000 worth of livestock, suffered $5.4 million in crop damages, and $8.5 million in property damage. Producers reported that 7,850 acres of pasture were damaged by the wildfires and high winds. Livestock deaths included cattle, sheep, goats, poultry, honeybee colonies, horses, and alpacas. Producers reported damage to floriculture and vegetable crops, some bananas, coffee, and other fruit crops. The $8.5 million in property damage included buildings, vehicles, irrigation equipment, farm machinery, fences, and other structures like water tanks. *********************************************************************************** Farm Bureau Backs American Sugar Producers As part of the policy resolutions set during their recent national convention, the American Farm Bureau continued support for a no-cost sugar policy. “We appreciate Farm Bureau’s continued support of our no-cost policy,” says Cassie Bladow (BLAY-dough), chairwoman of the American Sugar Alliance. “We appreciate having AFBF as a strong partner as we advocate for America’s sugar producers in the next farm bill.” Farm Bureau’s policy resolution advocates for a program that safeguards the interests of domestic sugar producers and supports critical pillars in the sugar policy, including a program to protect the interests of domestic sugar producers. They’re also in favor of legislation that includes provisions that ensure a strong and economically viable domestic sugar policy. They also support a program that meets our trade commitments and ensures a fair playing field for American producers. As the largest farm group, AFBF has consistently supported sugar policy in the farm bill. *********************************************************************************** Biomass Diesel Production Grew 25 Percent Last Year Clean Fuels Alliance welcomed the Environmental Protection Agency’s release of public data for the Renewable Fuel Standard. That data shows U.S. production of biomass-based diesel - including biodiesel, renewable diesel, sustainable aviation fuel, and heating oil – reached four billion gallons in 2023. Both domestic production and use of advanced biomass-based diesel grew by one billion gallons in 2023 compared to the prior year. “The clean fuels industry achieved what EPA said couldn’t be done by contributing to the growth of advanced biodiesel, renewable diesel, SAF, and heating oil from sustainably sourced feedstocks,” says Kurt Kovarik, vice president of federal affairs for Clean Fuels. “Our industry, including producers, oilseed processors, fuel distributors, and marketers, has made significant investments to make clean fuels available to more consumers and rapidly decarbonize heavy-duty transportation fuels, including for aviation and marine markets.” He also says that EPA’s data demonstrates the projected sustainable growth is being achieved. *********************************************************************************** Growing Future Leaders on GIVE FFA Day Interested people are invited to support the FFA and agricultural education through Give FFA Day on Thursday, February 22. For the eighth straight year, funds raised support programs on local, state, and national levels. During the 24 hours of giving, supporters can donate to the National FFA and the state FFA associations of their choice. In February, the organization will celebrate FFA, advisors, and members as part of National FFA Week, which includes giving back during Give FFA Day. For over 90 years, the National FFA Organization has strived to make a difference in students’ lives. Donations help FFA grow the next generation of leaders. Through FFA, members can find their path to success. With almost a million members, there is a need for sustained funding to provide valuable programs, events, skills training, and more. “FFA has been instrumental in growing my skills,” says Lauren Thornhill, an Ohio state FFA officer. *********************************************************************************** Don’t Fumble Your Super Bowl Party Safely serving friends and family during the big game is a win. The USDA says don’t fumble Super Bowl Sunday on February 11. As football fans gather to watch the big game, they’ll enjoy many of their favorite foods. Whether you order delivery or are preparing and serving food to guests, the Food Safety and Inspection Service has some gameday plans to keep your Super Bowl celebration from getting intercepted by foodborne illness. Among their many food safety tips, FSIS says if you order takeout before the game, make sure someone is there to get to the food in a timely manner. Make sure to get any uneaten food into the refrigerator as quickly as possible. Perishable foods that have been sitting out at room temperature must be eaten within two hours of being cooked. “Food safety must remain a top priority,” says USDA Undersecretary for Food Safety Dr. Emilio Esteban.
| Rural Advocate News | Tuesday January 30, 2024 |
Tuesday Watch List Markets Traders remain interested in South American weather with hot temperatures expected to stress Argentina's corn and soybean crops this week. A report on U.S. consumer confidence will be out at 9 a.m. and a two-day Federal Reserve meeting begins. The federal funds rate target is expected to remain unchanged at Wednesday's 1 p.m. announcement. Weather A small clipper system is moving through the eastern half of the Midwest with a band of mixed rain and snow on Tuesday that will get into the Southeast Tuesday night into Wednesday. Mostly light accumulations are expected outside of the higher elevations. It continues to be quite warm as the country awaits the arrival of a large trough in the West by Wednesday.
| Rural Advocate News | Monday January 29, 2024 |
Food Price Inflation Subsided in 2023 USDA’s Economic Research Service says food-at-home prices increased by five percent in 2023, much lower than the growth rate in 2022 of 11 percent. However, that was still double the historical annual average growth rate from 2003 to 2022, which was 2.5 percent. All product categories grew more slowly in 2023 than they did compared to 2022. Food price growth slowed last year as economy-wide inflationary pressures, supply chain issues, and wholesale food prices eased from 2022. In 2023, prices for fats and oils grew the fastest at nine percent. Sugars and sweets are 8.7 percent, and cereals and bakery products rose 8.4 percent. Pork prices dropped 1.2 percent in 2023l. Prices for several categories grew more slowly than their historical averages, including beef and veal at 3.6 percent, eggs 1.4 percent, fresh vegetables at less than one percent. Fresh fruits and seafood grew 0.7 percent and 0.3 percent, respectively. ********************************************************************************** Shielding Agriculture from Cyber Attacks Two senators introduced legislation intended to boost the agricultural industry’s resilience against cyber attacks. The bipartisan measure from Tom Cotton (R-AR) and Kirsten Gillibrand (D-NY) is backed by a number of agricultural groups. If passed, the bill would shield America’s supply chain from technological attacks. “America’s adversaries are looking for any advantage they can use against us, including targeting critical industries like agriculture,” Cotton says. The bill would require the USDA to conduct a twice-yearly study on cybersecurity threats to the agriculture industry. Courthouse News Service says the review would include analyzing existing threats, the potential impacts of a cyberattack on the safety and availability of food products, and the government’s ability to respond to an attack. USDA would also have to conduct an interagency “cross-sector crisis simulation exercise that mocks up a food-related national emergency. These exercises would help identify gaps in the government’s readiness to respond to such emergencies. *********************************************************************************** USDA Deputy Secretary Touring Land-Grant Universities USDA’s Deputy Secretary Xochitl (so-CHEEL) Torres Small is continuing a multi-week tour throughout the country’s land-grant universities. During her tour, the Deputy is visiting campuses in at least seven states to highlight how the agency is working with those universities to advance rural prosperity, climate-smart practices, competition, and sustainability. USDA is investing new funding for education and training, advancing cutting edge research, and bolstering economic development to build a food and agriculture food system that’s climate-smart, sustainable, and equitable. “Investments in the next generation of agriculture will benefit people in every sector of ag, food, and forestry,” says Torres Small. “At USDA, we’re committed to the future of our students and delivering real-life, applicable solutions to decades old problems like bringing broadband internet to communities around the country.” USDA’s National Institute for Food and Agriculture has provided more than $5 billion in support of land-grant university campuses since fiscal year 2021. *********************************************************************************** Britain Pauses Trade Talks Over Agriculture Britain has halted negotiations on a potential free trade deal with Canada because of dissatisfaction by both sides over a lack of access to each other’s agricultural markets. Reuters says the talks first launched in March 2022. Canadian negotiators say they’re disappointed that the UK put a pause on the negotiations, noting that Britain’s decision to keep barriers up for Canada’s agricultural market access is what’s stalling the negotiations. Canada’s farmers are complaining that they’ve been all but shut out of Britain’s beef market because of regulations banning the use of artificial hormones. A UK spokesperson posted on Twitter (X) that they reserve the right to call a pause on negotiations with any country if we don’t think progress is getting made. Before Britain made its exit from the European Union trading sphere at the end of 2020, Canada rolled over existing trade arrangements to ensure that free trade could continue. *********************************************************************************** CA Ranchers Watching Wolves Attack Cattle Herds Ranchers in California who see wolves attacking their cattle can only watch, unlike other states where wolves can be shot for it. Meantime, a California state fund set aside to compensate ranchers for their losses is quickly running out of money. “Not only can you not kill a wolf for attacking and killing one of your calves, but you also can’t injure it in any way,” says Kirk Wilbur, vice president of government affairs for the California Cattlemen’s Association. Cowboy State Daily says that’s the opposite of the policy in Wyoming, where wolves can be shot at any time. Ten years ago, Wolves began making their way from Oregon into California, and the northern part of the state now has over 40 established wolf packs. California put a $3 million compensation package in place during 2021, but it’s now running low on money. The current 102 applications will deplete the remaining funds. *********************************************************************************** Lamb Board Releases 2023 Annual Report The American Lamb Board released its fiscal year 2023 Annual Report to share programs and success stories with mandatory lamb checkoff stakeholders over the last year. The American lamb industry saw many successes during 2023, including an overall increase in demand for lamb nationwide. However, it comes at a critical point when U.S. flock numbers are declining. Many ALB programs focus on increasing demand for American lamb, but industry education and research are also at the forefront of the board’s work. Among the 2023 highlights in the report is a Sustainability Spotlight, where growers can find information about the Climate Smart Grant, a new Sustainability Director, a landmark environmental footprint study, and much more. There are promotional highlights featuring a growing food blogger network, cooking classes, events, and retail promotions. Looking ahead to the rest of 2024, the board is working on new industry workshops, promotions, educational opportunities, and research projects.
| Rural Advocate News | Monday January 29, 2024 |
Top 5 Things to Watch - Cattle Chats and Flooded Flats 1. Cattle convenings: This week marks the 2024 cattle industry CattleCon in Orlando. Watch for event news from DTN Senior Livestock Editor Jennifer Carrico. If you're in town and see her, buy her a cup of coffee for us. She's earning it. 2. From freeze to flood: Weather is expected to continue to warm up across the country this week. That sets up flooding conditions in areas where heavy snow melt occurs where creeks and rivers are still ice covered. There are already weekend flood warnings in areas of Illinois, others may be added into the week. 3. Immigration breakdown: Attend any ag-related meeting and the subject of farm labor shortages and immigration issues are likely on the agenda. With late-week rumblings of presidential politics throwing roadblocks in pending immigration legislation, we'll watch through the week to see if any significant policies bust through. 4. Market happenings: In the grains, attention will be on rains in Argentina and parts of Brazil, as solid yield potential in the Southern Hemisphere pulls down on soybean futures charts. 5. Economic reports to watch: First ag-related report of the week is Monday's 10 a.m. release of U.S. Grain Inspections. Tuesday starts with the 8 a.m. filing of the Case and Shiller Home Price Index. At 9 a.m. the lates Job Openings and Consumer Confidence Index numbers hit. Wednesday, ADP releases its latest employment figures at 7:15 a.m.; at 1 p.m. we'll get the Federal Reserve Interest rate decision. At 2 p.m. there are several releases, including the Broiler Hatchery report and the Bi-Annual Cattle Report, which will show inventory and value of cattle and calves. Also included are statistics on cattle on feed and grazing on small grain pasture, as well as calf crop data. Thursday starts with a 7:30 a.m. release of Initial Jobless Claims and the U.S. Grain Weekly Export Sales report. At 8:45 a.m. the U.S. Manufacturing PMI will be released. The week closes with Friday's 7:30 a.m. release of U.S. Nonfarm payroll data, U.S. Unemployment Rate and U.S. Hourly Wages. At 9 a.m. Factory Orders reports will be released.
| Rural Advocate News | Monday January 29, 2024 |
Monday Watch List Markets Back from the weekend, traders continue to monitor the latest weather forecasts in South America and events in the Middle East. USDA's weekly report of export inspections at 10 a.m. is the only significant report of the day. Weather It's a rather quiet day Monday as a ridge dominates the majority of the continent. Some showers will drop down into the Great Lakes areas tonight into Tuesday with a small disturbance. The ridge will also mean warm temperatures again, with the highest anomalies across the far north into Canada.
| Rural Advocate News | Friday January 26, 2024 |
Cold Blast Drops Ethanol Production to Three-Year Low A blast of cold weather in the Corn Belt sent ethanol production down 22 percent last week to its lowest point in three years. Bloomberg says America’s output of the corn-based biofuel missed all its survey estimates while stockpiles hit the highest level since March. The Energy Information Administration says the rise in stockpiles was the eighth straight week of increases. Ethanol production dropped to 18,000 barrels a day during the week ending on January 19, down from 1.054 million barrels during the previous week and the lowest level since the seven days ending on February 19, 2021. The Midwest, which produces the most ethanol in the country, had production fall to 766,000 barrels a day, a significant drop from 1.001 million a week earlier. The EIA says Rocky Mountain production declined, East Coast production was unchanged, and Gulf Coast production rose by 21,000 barrels a day. Inventories reached 25.815 million barrels. *********************************************************************************** Animal ID That Works for All Producers The U.S. Cattlemen’s Association reiterates its call to strengthen and establish a national animal identification system that works for and is accountable to all producers. There should be no private control of data or access to the data without the prior approval of the listed owner of the cattle at the time of application for the ID tags. All official USDA tag information should be held in state animal health databases and shared with federal health officials only as needed. USCA also insists that under no circumstances should a national cattlemen’s association coordinate or control producer data. Producers should also never be responsible for more than the cost of the tags. “USCA supports a voluntary national animal identification program and opposes establishing a national mandate,” says USCA President Justin Tupper. “Our members believe that each individual producer knows what’s best for their herd as it relates to animal husbandry practices.” *********************************************************************************** Ongoing Preparations for the 57th World Ag Expo The “Best Farm Show on Dirt” is coming up quickly. The International Agri-Center is preparing to host the 57th annual World Ag Expo in Tulare, California, February 13-15. The World Ag Expo welcomes attendees and exhibitors from around the world and provides a platform for networking, education, and business. Last year, the show saw more than 108,000 attendees from 49 states and 56 countries. Over 1,200 exhibitors shared 2.6 million square feet of exhibit space in 2023. Show officials note that 97 percent of exhibit spaces were sold as of January 19 and domestic and international ticket sales are trending at record levels. “There is so much innovation to see on the show grounds,” says Stan Creelman, 2024 World Ag Expo Show Chair, “from large manufacturers to small innovators and every solution in between.” Organizers predict 2024 may be a record year for the show. For more information, go to worldagexpo.org. *********************************************************************************** New Rule Will Increase Efficiency in Rail Systems The Surface Transportation Board announced it has adopted a final rule to amend its emergency service regulations to provide immediate relief for shippers in certain situations. The rule says the Board may act on its own to direct emergency rail service and establish an accelerated process for acute service emergencies. The Board has heard from a broad range of stakeholders about inconsistent and unreliable rail service and issued two orders mandating service in urgent situations. Stakeholder concerns have included railroad crew shortages and inability to move trains, tight car supplies and unfilled orders, delays in transportation for carload and bulk traffic, and ineffective customer assistance. “This approach to managing service emergencies is a long-needed reform that will help level the playing field for shippers where rail service failures have caused an acute threat to their business, or when emergency relief is necessary to protect the public, says Board Chair Martin Oberman. *********************************************************************************** Deadline for NCGA Scholarship Applications Approaching The National Corn Growers Association is committed to the future of agriculture. To support the next generation of leaders in American agriculture, NCGA has partnered with BASF to offer scholarships to students enrolled in qualifying institutions. NCGA is proud to offer and support three scholarship programs for three distinct audiences. The Technical School/Community College Scholarship offers $1,000 scholarships to five students pursuing a degree at one of these institutions. The William Berg Academic Excellence Scholarship Program will offer five $1,500 scholarships to undergraduate students pursuing degrees in any field. The Graduate Student Scholarship Program offers two $2,500 scholarships to graduate students whose area of study will benefit the corn industry. “Empowering future leaders in ag is vital for fostering a resilient rural economy in the coming years,” says NCGA Membership and Consumer Engagement Action Team Chair Dan Nerud. “NCGA remains committed to providing opportunities for students driven to serve farm families.” *********************************************************************************** December Milk Production Drops Slightly The 24 states that produce the most milk totaled 18.1 billion pounds in December, down 0.1 percent from December 2022. November’s revised production, at 17.3 billion pounds, was 0.6 percent below November 2022. The November revision represented a decrease of 14 million pounds or less than 0.1 percent from November’s preliminary production estimate. The USDA says production per cow in those states averaged 2,030 pounds for December, one pound above December 2022. The number of milk cows on farms in the 24 states was 8.9 million head, 17,000 head below December 2022 but unchanged from November 2023. U.S. milk production during the October-December quarter totaled 55.6 billion pounds, down 0.6 percent from the same quarter in 2023. The average number of milk cows in the U.S. during the quarter was 9.36 million head, 16,000 head less than the July-September quarter, and 44,000 head less than the same time during the prior year.
| Rural Advocate News | Friday January 26, 2024 |
Friday Watch List Markets Traders will be watching the weather for South America, and any new flash export sales at 8 a.m. CST. At 7:30 a.m. CST, Personal Spending and Personal Income data will be released, and at 9 a.m. we'll see Pending Home Sales. Weather Another system has entered the Southern Plains early Friday and will continue to provide scattered rain showers to the region throughout the day. More scattered showers will also develop across the Southern Delta and Southeast while precipitation exits the Eastern Midwest.
| Rural Advocate News | Thursday January 25, 2024 |
American Farm Bureau Establishes 2024 Policies The American Farm Bureau Federation concluded its 2024 Annual Convention setting policy direction for the organization this year. Passing a farm bill this year is the top priority for Farm Bureau members, followed by labor and artificial intelligence data privacy. Delegates voted to create new policy to address the growth of artificial intelligence in agriculture, which has the potential to enhance farming practices and conserve resources, but AFBF says privacy rights must be respected. Delegates also voted to stabilize wage rates for guest workers and revise H-2A and H-2B programs. They reaffirmed their support for increasing reference prices in the farm bill and maintaining a strong crop insurance program, including expanding eligibility to ensure more commodities are covered. Additionally, Farm Bureau delegates agreed to say in the Rural Communications section of the policy book, "We support vehicle manufacturers continuing to include AM radio in vehicles.” Beyond policy changes, AFBF President Zippy Duvall and Vice President Scott VanderWal were unanimously re-elected for another two-year term. *********************************************************************************** First Sustainable Aviation Fuel Plant Represents Opportunity Sustainable aviation fuel could grow into the largest new market ever seen for U.S. farm commodities thanks to the start of production at LanzaJet Freedom Pines Fuels. However, groups in Midwestern states say they could miss out on the opportunity without low-carbon ethanol, which requires carbon capture and sequestration. Iowa Renewable Fuels Association executive director Monte Shaw says, "Today and every day going forward, American farmers and ethanol producers are losing demand until we get carbon capture and sequestration online." Iowa Corn Usage and Production Committee Chair Dan Keitzer adds, “LanzaJet Freedom Pines Fuels will use a variety of low carbon sustainable ethanol, making this an eye-opening experience to what Iowa corn farmers could expect to be a part of." No Iowa ethanol plant currently has a carbon intensity score low enough to qualify as an SAF feedstock. Only one plant in the U.S., using CCS, is currently producing SAF-friendly ethanol. *********************************************************************************** Emergency Relief Program Payments Concentrated in North Dakota, Texas New data from USDA’s Economic Research Services shows Emergency Relief Program payments are largely concentrated in North Dakota and Texas. In 2020 and 2021, the United States experienced 42 disaster events, each resulting in damages of at least $1 billion, including hurricanes, drought, and wildfires. The Emergency Relief Program provides funds to assist commodity growers who suffered losses from natural disasters in those years. As of January 2023, cumulative payments made through the ERP totaled $7.3 billion. USDA disbursed a large portion of this total, $1.16 billion, to North Dakota producers of corn, soybeans, and wheat, who experienced flooding in 2020 and drought in 2021. Texas producers also received a sizable portion of payments, with cotton farmers receiving $510 million of the $909 million disbursed in that State. Producers in North Dakota and Texas received most ERP payments for revenue, quality, or production losses because of moisture and drought that occurred during the 2020 and 2021 crop years. *********************************************************************************** USDA: December Egg Production Up 3% USDA’s monthly Chicken and Eggs report released this week shows December egg production increased three percent. United States egg production totaled 9.45 billion during December 2023. Production included 8.14 billion table eggs, and 1.31 billion hatching eggs, of which 1.21 billion were broiler-type and 97.0 million were egg-type. The total number of layers during December 2023 averaged 384 million, up two percent from last year. December egg production per 100 layers was 2,462 eggs, up one percent from December 2022. All layers in the United States on January 1, 2024, totaled 379 million, up one percent from last year. The 379 million layers consisted of 312 million layers producing table or market type eggs, 63.6 million layers producing broiler-type hatching eggs, and 3.83 million layers producing egg-type hatching eggs. Rate of lay per day on January 1, 2024, averaged 79.3 eggs per 100 layers, up two percent from January 1, 2023. *********************************************************************************** McCain Global Reports Sustainability Progress In its Global Sustainability Report, McCain Foods announced progress towards its sustainability commitments this week. The company aims to implement regenerative agriculture practices across 100 percent of the global acreage that grows potatoes for McCain products by the end of the decade. The Global Sustainable Report shows 51 percent of McCain's global potato acreage onboarded within McCain's Regenerative Agriculture Framework, and 28 percent moving up the framework towards more comprehensive adoption of regenerative practices. McCain is accelerating the adoption of regenerative agriculture practices through its direct relationships with farmers— a network of 3,500 partners around the world — by providing technical and educational assistance and developing innovative financing solutions to offset costs associated with making changes in farming practices and adopting new technologies. McCain Foods Limited is a family-owned business founded in 1957 in Florenceville, New Brunswick, Canada. Today, the company is the world’s largest manufacturer of frozen potato products. *********************************************************************************** Organic Valley Announces First Agreements, Payments to Farmers Organic Valley, the largest cooperative of organic farmers in the nation, announced the first agreements and payments to initial organic farmers participating in Organic Valley's Carbon Insetting Program this week. Building off the University of Wisconsin-Madison published research in the Journal for Cleaner Production, which showed Organic Valley's average on-farm milk emissions were some of the lowest in the nation, the cooperative is taking the next step to improve the carbon footprint of its milk. As a recipient of the USDA Partnerships for Climate-Smart Commodities grant, the co-op is offering additional support for practices implemented on eligible Organic Valley member-owner farms, including selecting and scoping region-specific projects, verification of those projects, and then helping to fund the practice installation. The co-op offers technical assistance to help farmers plan and design carbon-reducing projects, sources grant implementation funds and ensures monitoring and verification of those projects. The projects include renewable energy installations at farmsteads, upgraded manure management technology, and enteric-reducing feed supplements.
| Rural Advocate News | Thursday January 25, 2024 |
Thursday Watch List Markets Traders will be awaiting U.S. export sales for last week, along with watching for any changes in South American weather. Also, at 7:30 a.m. CST, we will get Fourth Quarter GDP, Initial Jobless Claims, and Durable Goods Orders. At 9 a.m. CST, New Home Sales will be released. Weather A low pressure system along a stalled frontal boundary will provide scattered showers across the Midwest, Tennessee Valley, and Southeast Thursday. Along with the risk for heavy rainfall across the Southeast, a few strong to severe thunderstorms may also form across the region. Farther west, drier conditions return to the Central and Southern Plains throughout Thursday.
| Rural Advocate News | Wednesday January 24, 2024 |
Some Republican Lawmakers Against Raising Reference Prices Following calls by some groups to increase reference prices in the upcoming Farm Bill, Republican lawmakers stand in "strong opposition" to any potential increases. Republican Representatives Alex Mooney of West Virginia, along with Tennessee's Andy Ogles, Brian Mast of Florida, and others, say any increase would further drive inflation higher. The letter states, "At a time when Congress must be taking steps to reduce federal spending, we must resist costly attempts to expand the scope of government intervention in the free market." The lawmakers argue that "higher price guarantees" would mostly benefit fewer than 6,000 farms. Increasing price guarantees for major crops would mostly benefit peanut, cotton, and rice farmers in Southern states, not corn and soybean farmers, according to the letter. Since payments are linked to production, the largest producers get the lion's share of the funding. In 2021, just ten percent of farmers received more than 80 percent of all Price Loss Coverage payments, the lawmakers claim. *********************************************************************************** Small Family Farms at Highest Financial Risk Small family farms were more likely to have greater financial vulnerability than other farms, according to data from USDA’s Economic Research Service. Researchers calculated the operating profit margin by taking the ratio of profit to gross farm income to find that in 2022, between 52 and 79 percent of small family farms, depending on the farm type, were at the high-risk level. If the operating profit margin is less than ten percent, the operation is considered at high financial risk. When the measure is between 10 and 25 percent, the operation is considered at medium financial risk, and if above 25 percent, the operation is at low financial risk. A majority of small-scale family farms, which have a gross cash farm income of up to $350,000, earn most of their income from off-farm sources. For these farms, farm profitability is not necessarily essential to the survival of the household. Small family farms make up 88 percent of all farms but account for only 19 percent of the total value of production. *********************************************************************************** ADM Investigating Chief Financial Officer This week, ADM appointed an interim chief financial officer while the current CFO, Vikram Luthar, was placed on administrative leave. Luthar's leave is pending an ongoing investigation conducted by outside counsel for ADM and the Board's Audit Committee regarding certain accounting practices and procedures concerning ADM's Nutrition segment, including certain intersegment transactions. ADM's investigation was initiated in response to a voluntary document request by the U.S. Securities and Exchange Commission. ADM Lead Director Terry Crews says, "Pending the outcome of the investigation, the Board determined that it was advisable to place Luthar on administrative leave. The Board will continue working closely with ADM's advisors to identify the best path forward and ensure ADM's processes align with financial governance best practices.” ADM will make further announcements regarding the matter when the Board of Directors see fit. *********************************************************************************** Iowa Senate Bill Would Support Small Grocers A bill introduced last week in the Iowa Senate seeks to provide resources to small grocery store owners fighting to keep their stores open amidst economic and workforce challenges and competition from big box retailers. The legislation would create the Grocer Reinvestment Fund and establish a grant and loan program to help locally-owned grocery stores selling perishable foods invest in their businesses. Cynthia Farmer, policy associate with the Center for Rural Affairs, says, "The Grocer Reinvestment Fund and Program would provide financial support to grocers for cost-saving efforts and business efficiency to ensure long-term sustainability." The Iowa Economic Development Authority will oversee the grant and loan program if the bill passes. Funding will be available to grocery stores that sell canned and frozen food; fresh fruits and vegetables; and fresh meat, fish, and poultry. The business must employ 25 or fewer individuals and plan to create new jobs or increase compensation for existing employees. *********************************************************************************** FFA Members Explore Agriculture in Australia More than 70 current and past state FFA officers started the new year by exploring Australia and the various types of agriculture the country offers. It was part of the International Leadership Seminar for State Officers, supported by FFA corporate donors Bungee and John Deere. While in Australia, the students explored Sydney. Then they traveled to Canberra, where they visited with the counselor for agricultural affairs, agricultural specialists and agricultural marketing specialists based at the U.S. Embassy, a representative from the National Farmers' Federation, and a representative from the Australian Rural Leadership Program. They visited perennial pastures, Angus cattle farms, and more. While visiting the Darlington Point District, they explored one of Australia’s most productive farmland, where rice and other cereal crops, fruits and vegetables, grapes, and citrus are grown. Students also visited Australia's only independent agricultural college. They wrapped up their journey in Melbourne, exploring the city and visiting a wildlife sanctuary. *********************************************************************************** NCBA Provides Internship Opportunities in Denver and D.C. The National Cattlemen’s Beef Association is providing multiple internship opportunities for students to learn about different aspects of the cattle industry. Internships are offered in NCBA’s offices in Denver, Colorado and Washington, D.C. New this year, NCBA is launching a Producer Education and Sustainability Internship focused on implementing the cattle industry's sustainability goals, supporting the Beef Checkoff-funded Beef Quality Assurance program, and providing educational resources to cattle producers to improve land management, animal health, and profitability. The internship will occur in the summer of 2024. NCBA and the Public Lands Council are also now accepting applications for the summer 2024 Public Policy Internship in Washington, D.C., from May 20 – August 23, 2024. The internship allows students to work jointly with NCBA and PLC to advance policies important to the beef and sheep industries. The full description and qualifications for both internship opportunities are available on the careers page of ncba.org. Applications are due by February 23, 2024.
| Rural Advocate News | Wednesday January 24, 2024 |
Wednesday Watch List Markets Traders continue to monitor changes in South American weather and will soon be picking up more soybean harvest reports from Brazil. The Energy Department's weekly energy inventory report will be out at 9:30 a.m. CST and USDA's monthly cold storage report will follow at 2 p.m. Weather More rounds of rain showers will plague the central U.S. Wednesday as rain showers are expected to continue from the southeast Plains into the Ohio Valley. A few strong to severe storms are possible in southeastern Texas, southern Louisiana, and southern Mississippi as well. Heavy rain could also lead to areas of flooding across the Southern Delta and Tennessee Valley.
| Rural Advocate News | Tuesday January 23, 2024 |
USDA Investing $207 Million in Clean Energy and Domestic Fertilizer Projects Agriculture Secretary Tom Vilsack Monday announced USDA is investing $207 million in renewable energy and domestic fertilizer projects. Vilsack made the announcement at the 105th annual American Farm Bureau Federation convention in Salt Lake City, Utah. Vilsack says, “The investments announced will expand access to renewable energy infrastructure and increase domestic fertilizer production, all while creating good-paying jobs and saving people money on their energy costs that they can then invest back into their businesses and communities.” USDA is investing in projects in 42 states, funded through the Rural Energy for America Program and the Fertilizer Production Expansion Program. The Rural Energy for America Program awards total $157 million for 675 projects in 42 states. Projects financed through the Fertilizer Production Expansion Program will help U.S. farmers increase independent, domestic fertilizer production. The investments include $50 million in seven projects in seven states. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation. *********************************************************************************** AFBF Makes Call for Farm Bill Passage American Farm Bureau Federation President Zippy Duvall encouraged AFBF members to press Congress to pass a new Farm Bill. Speaking at the AFBF annual convention in Salt Lake City, Utah, which kicked off Sunday, Duvall told members of AFBF, “I’m asking you to send a resounding message to Congress to deliver a new farm bill for our farms and our country.” Duvall continued, “The road to a new farm bill has become longer than any of us would have liked, but together we can see it through.” Many believe Congress needs to act in the first half of the year to complete a farm bill and avoid the thick of election season this fall. Representative Blake Moore, a Republican from Utah, told the audience making a personal connection with lawmakers works best. He says, “Most members of Congress, whether they have a ‘D’ or an ‘R’ in front of their name, they do believe there is a need for strong agriculture.” *********************************************************************************** Farm Groups Launch Mental Health Initiative Farm Family Wellness Alliance launched Togetherall over the weekend, launching free, anonymous, online mental health and wellbeing services for farm families. Announced at the American Farm Bureau Federation annual convention in Salt Lake City, Utah, the effort offers a safe, clinically moderated peer-to-peer community, where members around the world are there to listen, support and give members' mental wellbeing a boost. AFBF President Zippy Duvall says, “It’s OK not to be OK, but it’s not OK not to reach out when you’re hurting.” Togetherall also offers a range of wellbeing tools, such as self-assessments and access to additional support services through a partnership with Personal Assistance Services. Topics covered include anxiety, depression, financial health, improving sleep and more. Farm Foundation started the Farm Family Wellness Alliance in 2020 following the Iowa derecho. The announcement this weekend expands the program nationwide. To learn more, visit farmfoundation.org. *********************************************************************************** Food-at-home Spending Drops Close to pre-COVID Levels Following shifts in U.S. food spending during the COVID-19 pandemic, food-at-home spending was only 2.7 percent higher in November 2023 compared with November 2019. Food-away-from-home spending remained elevated at 14.6 percent higher, according to new data from USDA’s Economic Research Service. After an initial jump in inflation-adjusted food-at-home spending in March through May 2020, the spending leveled off, averaging just 2.8 percent higher in December 2020 compared with 2019. Even as prices increased throughout 2021 and 2022, inflation-adjusted food-at-home spending also increased, with monthly spending in these years averaging 7.2 percent higher than the corresponding months in 2019. Food at home spending has trended back toward pre-pandemic levels since the peak difference of 9.5 percent in March 2022. By contrast, food away-from-home spending initially fell during the pandemic but reversed quickly and outpaced 2019 spending starting in June 2021. Food at home spending peaked at 14.8 percent higher in March 2023 compared with March 2019. *********************************************************************************** Alltech 2023 U.S. Harvest Analysis Reveals Variable Mycotoxin Risk U.S. farmers and producers have experienced droughts, high rainfall, and other weather events affecting the 2023 corn harvest, making it more critical than ever to analyze mycotoxin. The Alltech 2023 U.S. Harvest Analysis has collected and assessed almost 450 new-crop samples from across the U.S., and the results show regional variation in mycotoxin risk. Samples showed lower risk in the upper Midwest and higher risk in the East. A combination of drought and untimely rains led to much of the risk. Mycotoxins are produced by certain species of molds and are a concern for livestock producers, as they can influence feed quality and subsequent animal health and performance. Mycotoxin levels continue to be higher in the East and Midwest United States. Earlier harvest conditions and drier conditions in the West helped to create lower-risk conditions. The Alltech 2023 U.S. Harvest Analysis demonstrates that mycotoxins are an ongoing, dynamic issue that livestock producers need to manage. For more information about Alltech Mycotoxin Management solutions, visit knowmycotoxins.com. *********************************************************************************** Vilsack Traveling to Georgia to Tout SAF, School Meals Agriculture Secretary Tom Vilsack is in Georgia promoting USDA's school meals and sustainable aviation fuel this week. Vilsack Tuesday (today) is visiting a high school in East Point, Georgia, participating in a roundtable with child nutrition efforts. The discussion focuses on efforts to expand access to healthy meals for more students and improve the nutritional quality of those meals. Wednesday, Vilsack will provide Keynote remarks at the grand opening of LanzaJet Freedom Pines Fuels in Soperton, Georgia. The facility is the world’s first facility dedicated to the production of sustainable aviation fuel from ethanol. The visit comes as the Environmental Protection Agency released Public Data for the Renewable Fuel Standard, including final production volumes for 2023. EPA’s data shows that U.S. production of biomass-based diesel – including biodiesel, renewable diesel, sustainable aviation fuel, and heating oil – reached four billion gallons in 2023. Both domestic production and use of advanced biomass-based diesel grew by one billion gallons in 2023, compared to 2022.
| Rural Advocate News | Tuesday January 23, 2024 |
Tuesday Watch List Markets Traders continue to pay attention to the weather in South America plus rising hostility from Iran and the latest threat from Russia. There are no significant market reports due out Tuesday. Weather While areas of freezing rain, snow, and a mix of rain and snow will continue across the Eastern Midwest and Great Lakes Tuesday, areas of heavy rainfall will remain possible across the Southern Plains and Southern Delta. A few strong to severe storms are also possible across southeast Texas and eastern Louisiana.
| Rural Advocate News | Monday January 22, 2024 |
Fed’s January 2024 Beige Book on Ag Economy The Federal Reserve Board released its January 2024 Beige Book, a summary of its commentary on the current economic conditions in each Federal Reserve District. In the sixth district around Atlanta, Low cattle supply led to higher cattle prices, but consumers are substituting less expensive proteins and preventing full pass-through of prices. In the eighth district near St. Louis, ongoing drought continues to affect livestock and crop conditions. The ninth district of Minneapolis shows conditions unchanged, while most say farm incomes dropped substantially from last year. In Kansas City’s tenth district, profits narrowed during the past year as commodity prices moderated, particularly in areas hit by drought. Drought conditions continue to recede in the eleventh district of Dallas as soil moisture improves and crop production prospects look better in 2024. Conditions in San Francisco’s 12th district were solid in agriculture and resource-related sectors, with robust yields and inventories of various products. *********************************************************************************** GAO Pushes FDA on Food Safety Although the U.S. food supply is one of the safest, foodborne illness is a public health concern. The Food and Drug Administration has a new rule requiring detailed records for certain foods as they move through the supply chain, which can help trace the source of a potential outbreak. FDA has taken steps like issuing guidance to help implement the rule. The Government Accountability Office has recommended that the FDA finalize its plans for implementing the rule to help industry and regulators prepare for compliance by January 30, 2026. In November 2022, the FDA promulgated a final rule on food traceability to help identify the source of outbreaks of foodborne illness. When developing the new rule, FDA established a list of certain foods for which enhanced recordkeeping is required. Entities handling an item on the list must maintain records, including a traceability plan for specific points in the supply chain. *********************************************************************************** Stabenow Releases Letter on the Farm Bill Senate Ag Committee Chair Debbie Stabenow wrote a letter to her colleagues on their work to write a new farm bill. She outlined several proposals for strengthening the farm safety net in the new bill. While calling the 2018 Farm Bill a “strong foundation” for American farmers, she also says, “The 2024 Farm Bill is an opportunity for the Committee to make improvements, modernize dated elements, and address emerging challenges American farmers face.” Her vision for modernizing the safety net centers around principles like programs being targeted to active farmers, providing farmers choice and flexibility, and sending them timely assistance. She also says officials need to expand the reach of programs to help more farmers and address the emerging risks farmers face. “Crop insurance is a key tool to meaningfully advance each of those goals,” she said in the letter. “Farmers want better affordability and a more straightforward and streamlined process.” *********************************************************************************** USDA Launches Pilot Beef-Grading Program Ag Secretary Tom Vilsack announced a pilot program to allow more cattle producers and meat processors to access better markets through USDA’s official beef quality grading and certification. The Remote Grading Pilot for Beef, developed by the AMS, matches simple technology with robust data management and program oversight to allow a USDA grader to assess beef carcass characteristics and assign the official quality grade from a remote location, reducing costs and location as barriers to participation in the voluntary grading service. “On average, a beef carcass that grades as USDA Prime is valued at hundreds of dollars more than an ungraded one,” Vilsack says. “But the costs for this voluntary USDA service often prevent smaller scale processors and the farmers and ranchers they serve from using this valuable marketing tool.” Consumers and buyers and sellers of beef rely on USDA quality grades, including Prime, Choice, and Select, to indicate quality. *********************************************************************************** NCGA Unhappy with ITC Decision on Tariffs The National Corn Growers Association is deeply disappointed in a decision from the International Trade Commission. The ITC upheld an earlier opinion finding material injury to U.S. fertilizer companies during a time of rising on-farm fertilizer prices that went on to reach record highs. The decision came after the U.S. Court of International Trade asked the Commerce Department and ITC to reconsider decisions they issued on the matter. “The idea that major fertilizer conglomerates were materially injured even as they were posting substantially higher profits during the time in question sounds dubious to me,” says NCGA President Harold Wolle. “The decision ignores the request from the Court of International Trade and the negative impacts these tariffs continue to have on America’s farmers, who are facing higher prices for the fertilizers critical to the success of their crops. We will continue to make a vigorous case for eliminating or lowering these tariffs.” *********************************************************************************** Groups Press for Miscellaneous Tariff Bill Crop Life America and several other groups joined together on Capitol Hill to urge immediate action by lawmakers to renew the Miscellaneous Tariff Bill. “A passage of the Miscellaneous Tariff Bill that’s fully retroactive would help farmers’ access to the essential pesticide products they need to grow food for the U.S. and the World,” CropLife America said in a statement. “A renewed MTB would mean lower input prices resulting in decreased price pressures for U.S. farmers, ranchers, and consumers.” The American Chemistry Council was another of the groups pushing for renewal of the MTB. “The bill would support advanced manufacturing in the United States and domestic chemical production used to make products in key agriculture, food production, and industrial sectors, including information technology, renewable energy, and automotive goods,” said the ACC. The previous MTB expired in December 2020, and since then, businesses continued to pay $1.3 million per day in tariffs.
| Rural Advocate News | Monday January 22, 2024 |
Top 5 Things to Watch - Weather Warms, Winter Meetings Start 1. Farm Bureau reports: DTN Senior Ag Policy Editor Chris Clayton is covering the American Farm Bureau Federation annual meeting in Salt Lake City, Utah, Jan 19-24. Farm Bill legislation, trade and other issues will all be part of speeches and sessions there. 2. Weather warmup: While this weekend includes a last burst of really cold air into South Dakota, Iowa and Nebraska, a warmup is on tap for the week ahead. That will bring increasing precipitation across eastern Texas and up into the Midwest in several waves. We could see heavy snow in the Great Lakes region, and some ice potential in the Ohio and Mid-Mississippi valleys, depending on temperatures. 3. Market happenings: Soybean markets are watching for the start of Brazilian harvest as well as the ongoing reports of China's potential economic slowdown. DTN Lead Analyst Todd Hultman will speak at the Sioux Falls, South Dakota farm show from Wednesday through Friday. It's a great place to hear the latest market thoughts and ask your marketing questions. 4. Stewart returns: DTN Livestock Analyst ShayLe Stewart returns Monday; watch for her market commentary throughout the week. 5. Economic reports to watch: Monday we'll report grain inspections at 10 a.m. Then, Tuesday sees U.S. bioenergy statistics at 2 p.m. On Wednesday, we'll see the S & P PMI numbers released at 8:45 a.m. A busy Thursday starts with a number of reports released at 7:30 a.m., including 4th quarter GDP, initial jobless claims, durable goods orders, U.S. trade balance, U.S. retail and wholesale inventories, and U.S. export sales. Friday we'll watch for personal Income, personal spending and the PCE Index at 7:30 a.m. At 9 a.m. the pending home sales index will be released.
| Rural Advocate News | Monday January 22, 2024 |
Monday Watch List Markets Back from the weekend, traders will keep catch up on South American weather forecasts and notice any news over the weekend, especially concerning Middle East tensions and Red Sea traffic. The U.S. index of leading indicators for December is set for 9 a.m., followed by USDA's weekly export inspections at 10 a.m. Weather A large system will bring widespread precipitation from Texas into Illinois Monday, with pockets of heavy freezing rain likely in parts of Arkansas and Missouri. Up to 0.10-0.25 inch of ice is possible in northern Arkansas and southern Missouri. Meanwhile, parts of eastern Texas could see 1-3 inches of rain.
| Rural Advocate News | Friday January 19, 2024 |
Farm Lending Activity Remains Muted New non-real estate farm lending activity at commercial banks continued to decline in the fourth quarter of 2023. The volume of new non-real estate farm loans in the final months of 2023 was about 15 percent less than the previous year. The number of new loans did increase from the previous year, but the average loan sizes were considerably lower. The sharp climb in farm loan interest rates abated during the quarter as average rates increased modestly for some types of loans and dropped slightly for others. Despite a reduction in new loans compared to late 2022, 2023’s outstanding farm debt balances reported by commercial banks grew steadily through the third quarter of 2023. Elevated production costs, higher interest expenses, and lower commodity prices increased the financing needs of many producers. The Kansas City Fed says strong liquidity in recent years likely supplemented the borrowing needs of some operations throughout 2023. *********************************************************************************** Taylor to Lead Trade Mission to India Alexis Taylor, USDA’s Undersecretary for Trade and Foreign Agricultural Affairs, will lead an agribusiness trade mission to India from April 22-25. USDA is reminding interested parties that applications are open for exporters who want to take part. “There is no larger untapped market in the world for U.S. agriculture than India and its 1.4 billion consumers,” Taylor says. “We achieved notable tariff reductions this year on chickpeas, lentils, almonds, walnuts, apples, and frozen turkey, among other products that will open market opportunities for American farmers in the world’s most populous country.” She also says FAS is excited to support food and agricultural exporters as the two countries have entered a new chapter in trade relations. While in India, U.S. agribusinesses will participate in business-to-business meetings with potential importers from India, Nepal, and Sri Lanka. “Total U.S. ag exports to India, Nepal, and Sri Lanka exceeded $2.5 billion in 2022,” she adds. *********************************************************************************** NCBA Keeps Pushing for Death Tax Relief The National Cattlemen’s Beef Association strongly supports the Death Tax Repeal Act introduced in both the House and Senate. NCBA says it’s unconscionable for cattle producers to face a tax that forces them to sell all or part of their family’s farm or ranch due to the death of a family member. “With the cost of farmland rising rapidly, the Death Tax presents a significant threat to the future of family farms and ranches,” says NCBA President Todd Wilkinson of South Dakota. “Most cattle producers have significant assets but are cash-poor and operate on thin margins, leaving them with few options when they are saddled with an unexpected tax liability.” The NCBA says some producers get forced to sell off assets, including land, livestock, farm equipment, and even their home. Current death tax relief expires at the end of 2025, and it’s vital that Congress acts soon to provide permanent relief. *********************************************************************************** Illinois Tops U.S. Soybean Production in 2023 The National Agricultural Statistics Service estimates Illinois soybean farmers raised a U.S.-leading 648.9 million bushels on 10.3 million acres. Compared to the previous year, total acreage and yield estimates were both four percent lower in Illinois. Average soybean yields remained the same in 2023 at 63 bushels an acre. “I’d like to congratulate my fellow farmers on another successful growing season,” says Ron Kindred, Illinois Soybean Association Chair. “Illinois farmers made smart management decisions to maintain average soybean yields statewide.” Kindred also says part of the success can be attributed to the efforts of the Illinois Soybean Association. “For 60 years and counting, ISA has invested in production research, education, advocacy, and market development efforts to afford all Illinois soybean farmers success even in the face of many challenges,” he says. As the Illinois Soybean Association turns 60, Kindred says communicating the checkoff’s benefits is key to staying ahead of challenges. *********************************************************************************** Record Support for AM Radio in the House The radio industry hit an important milestone as the number of lawmakers in the House who back efforts to make AM radio mandatory in vehicles has reached 200. The list has grown even as the proposed AM Radio in Every Vehicle Act has yet to make much legislative progress in the House. Insider Radio says the growth in support could be critical if bill sponsors try to attach the measure to a piece of must-pass legislation like a spending bill. National Association of Broadcasters spokesman Alex Siciliano credits grassroots support for helping broadcasters to gain so many cosponsors of the Act during the past year. “AM radio is continuing to reach a vast audience of 82 million listeners each month, and they’ve been very engaged in telling Congress how important this medium is to them in light of the threat by vehicle makers to remove AM from vehicles,” he says. *********************************************************************************** Growth Energy Outlines 2024 Policy Priorities Growth Energy, the nation’s largest biofuels trade association, published its 2024 federal policy priorities. “These are policy decisions that will shape the next era of growth in plant-based energy and climate solutions,” says Growth Energy CEO Emily Skor. “We hope these priorities serve as a roadmap for elected officials seeking to support biomanufacturing facilities at the heart of America’s bioeconomy.” The policy priorities focus on ensuring drivers can use more lower-carbon, lower-cost bioethanol at the pump at home and abroad. The group wants to restore permanent, unrestricted access to E15 year-round nationwide. Growth Energy also wants to use bioethanol to expeditiously advance the national transportation carbon reduction goals. They want to make sure the Department of Energy incorporates the best science and makes limited changes to the GREET model as it relates to the 408 Sustainable Aviation Fuel Tax Credit. They want to ensure changes are finished by March 1, 2024.
| Rural Advocate News | Friday January 19, 2024 |
Friday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Friday. At 9 a.m., the University of Michigan's report of consumer sentiment in January and a report on U.S. existing home sales in December will both be released. USDA's cattle on-feed report for January 1 will be out at 2 p.m., the same time as USDA's Livestock, Dairy and Poultry outlook for January. Weather A clipper system continues to bring a band of snow across the eastern Midwest and into the Mid-Atlantic on Friday and is pulling the last of an arctic blast from the polar vortex behind it from Canada to the Gulf of Mexico yet again that will last for a couple of days.
| Rural Advocate News | Thursday January 18, 2024 |
Lawmakers Seek 2024 DMC Enrollment Period A group of lawmakers is asking the Department of Agriculture to swiftly open the 2024 Dairy Margin Coverage program sign-up period. The program is the nation's risk management tool for dairy producers that helps farmers manage changes between milk prices and feed costs. The lawmakers, including Iowa Republican Representative Randy Feenstra, write, “Now, as we are nearly halfway through January, there continues to be no indication given to producers of when they will be eligible to select their DMC coverage level for 2024.” The delay, the lawmakers say, coupled with the unpredictable nature of the industry is “concerning for the farm economy and the constituents we represent.” Throughout 2023, dairy producers faced numerous challenges – high input costs, continued inflation, and unpredictable weather conditions – meaning that programs like DMC, which provide certainty during unstable economic conditions, are vital to producers and rural communities, the letter says. The lawmakers urged USDA to quickly open the sign-up period to provide dairy producers certainty in 2024. *********************************************************************************** USDA: Large Family Farms Account for Bulk of Commodity Production Large-scale family farms accounted for a majority of the value of commodity production in 2022, according to a new report from USDA’s Economic Research Service. Specifically, these farms accounted for 51 percent of cash grains and soybeans, 56 percent of hog production, 65 percent of cotton along with 65 percent of specialty crops, and 76 percent of dairy products. On the other hand, small family farms accounted for three percent of the value of production for dairy, four percent for cotton, seven percent for specialty crops, and 26 percent for beef, but they produced the majority of hay—53 percent—and 45 percent of poultry and eggs. The value of production by nonfamily farms ranged from five percent for both hay production and poultry and eggs production to 19 percent for specialty crop production. Large scale family farms are those with a Gross Cash Farm Income of more than $1 million. *********************************************************************************** Global Soybean Stocks Raised on Higher Production The marketing year 2023/24 global soybean production forecast has increased by 0.1 million metric tons this month to 399.0 million metric tons. USDA’s Monthly Oil Crops Outlook shows higher production in Argentina, the United States, Paraguay, Russia, China, and Bolivia more than offset lower production in Brazil. Global soybean trade for 2023/24 is forecasted to be up from last month and stands at 170.9 million metric tons due to higher exports from Paraguay and Russia. The global soybean crush is nearly unchanged this month, as higher crush in Argentina, India, Egypt, and Thailand offsets the reduced crush volume in Brazil. Global soybean ending stocks are forecast at 114.6 million metric tons, up 0.4 million metric tons from last month's forecast and 12.7 million metric tons above last year's level. In the latest Crop Production report by USDA, U.S. soybean production was raised by 35.2 million bushels on higher yields. The harvested acreage is reduced this month 0.4 million acres on lower harvested area. *********************************************************************************** United Soybean Board Releases 2024 Sustainability Overview The United Soybean Board Wednesday released the 2023 Soy Sustainability Overview. The report outlines the partnerships formed through checkoff investment to drive innovation in sustainability. The advances include efforts to enhance sustainability in production agriculture and ongoing development of new soy-based products that provide cleaner alternatives for everything from rubbers and plastics to adhesives and lubricants. Iowa farmer April Hemmes, chair of the Demand Action Team at USB, says, "U.S. Soy farmers are proud of the important and growing role they play in maximizing sustainability not only in farming but throughout industries and around the globe." The report covers sustainable food practices, renewable energy such as biodiesel, and other sustainability practices. The report also provides updates on checkoff-funded research projects that hold significant promise in advancing sustainability, both on the farm and through groundbreaking new uses for soy. For more information and to view the report, visit unitedsoybean.org. *********************************************************************************** Lawmakers Introduce Bill to Promote Domestic Hardwood Products Representatives Tom Tiffany and Congresswoman Ann Kuster introduced bipartisan legislation this week to support domestic hardwood products. The Hardwood Products Access and Development Program Act, permits the Agriculture Secretary to authorize grants that bolster domestic industry efforts and research that directly supports end-user information on the benefits of hardwood products. The grants will allow various nonprofits, universities, and other eligible applicants to research the low carbon footprint and sustainability of domestically produced hardwood products to educate the public on the benefits of these products. Representative Tiffany, a Wisconsin Republican, says, "This important legislation will inform consumers on the sustainability of domestically produced hardwood products." Representative Kuster, a New Hampshire Democrat adds, "American-grown hardwood offers an incredible opportunity to create more sustainable, durable products in countless industries right here at home." The U.S. hardwood industry is a multi-billion-dollar industry supporting over 1.8 million jobs, mostly in rural, underserved areas. *********************************************************************************** USDA Appoints New Members to Minority Farmers Advisory Committee The Department of Agriculture Wednesday announced the appointment of 15 new members to the Advisory Committee on Minority Farmers. The newly appointed members serve terms of up to two years. Agriculture Secretary Tom Vilsack says, "This committee is part of USDA's commitment to ensure that all farmers have equal access to USDA programs and services, especially minority farmers and producers in underserved communities." Committee members represent socially disadvantaged farmers, nonprofit organizations, civil rights organizations or professions, and higher education institutions. Congress established the Advisory Committee for Minority Farmers in the Food Conservation and Energy Act of 2008 to ensure that underserved farmers have equal access to USDA programs. Committee members advise the Secretary of Agriculture on the administration of the Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers Competitive Grant Program. They also make recommendations to the Secretary on how to increase minority participation in USDA programs. Find more information, including a list of new members, on the committee website.
| Rural Advocate News | Thursday January 18, 2024 |
Thursday Watch List Markets Weekly U.S. jobless claims, U.S. housing starts for December and an update of the U.S. Drought Monitor are due out at 7:30 a.m. CST Thursday. The Energy Department's report on natural gas storage will be out at 9:30 a.m., followed by the weekly energy inventory report at 10 a.m. Traders continue to monitor South American weather and news from the Middle East. Weather A clipper system is moving through South Dakota early this morning, bringing a band of light to moderate snow through the Northern Plains. The system will continue southeast through Iowa Thursday and into the eastern Midwest overnight into Friday. An arctic blast of cold will follow behind the clipper for a couple of days, though temperatures out ahead of it are closer to normal in a reprieve from yesterday.
| Rural Advocate News | Wednesday January 17, 2024 |
Pork Producers Concerned About FDA Antibiotics Proposal The National Pork Producers Council submitted comments critical of the Food and Drug Administration’s draft guidance on the duration of use of certain antibiotics in food animals. NPPC says the proposal would “deny the ability for a veterinarian to prescribe antimicrobials appropriately, burden pharmaceutical companies, and may jeopardize antibiotic access.” For 30 years, the U.S. pork industry has implemented measures, including FDA directives, for responsible antibiotic use. In the comments, NPPC emphasized that veterinarians are responsible for deciding what antimicrobials to prescribe, when products should be used and administered, which animals to medicate, and for how long. The organization says the draft guidance interferes with the veterinarian’s decision-making process by mandating a duration of use. The comments urge the FDA to work closely with drug manufacturers to provide a simple process to include duration of use to continue the availability of products and allow veterinarians to maintain their role in the decision-making process. *********************************************************************************** Collaboration Will Expand Rural Connectivity John Deere announced it entered into an agreement with SpaceX to provide cutting-edge satellite communications service to farmers. Utilizing the Starlink network will allow farmers facing rural connectivity issues to fully leverage precision agriculture technologies. The partnership will enable John Deere customers to be more productive, profitable, and sustainable in their operations as they continue to provide food, fuel, and fiber to their communities and a growing global population. “The value of connectivity to farmers is broader than any single task or action,” says Aaron Wetzel, vice president of production and precision ag systems at John Deere. “Connectivity unlocks vast opportunities that were previously limited or unavailable.” The new solution will connect both new and existing machines through satellite internet service and satellite terminals. This will fully enable technologies such as autonomy, real-time data sharing, remote diagnostics, enhanced self-repair solutions, and machine-to-machine communication to help farmers work more efficiently. *********************************************************************************** Rural Residents Among Country’s Unhappiest People Rural residents join Republicans, renters, women, and single people in feeling they’re in a funk financially. That’s according to the Axios Vibe survey by The Harris Poll. Inflation has dipped in recent months, but the subject remains top of mind for many Americans. Six in 10 survey respondents say they’re now “triggered” by trips to the grocery store. Grocery purchases are the top way Americans say they feel inflation every day, followed by gas prices. Thirty-seven percent of Americans rate their financial situation as poor. That rises to 57 percent for renters, 47 percent for singles, and 46 percent for rural residents. Forty-one percent of Americans say their finances are worse today than they’d have predicted if they’d been asked, pre-COVID, to imagine the future. That percentage rises to 53 percent for rural residents and 51 percent for renters. The poll finds many Americans, including rural residents, calling the economy weak. *********************************************************************************** Actor Joining Clean Fuels Alliance to Promote Bioheat Donnie Wahlberg of the TV show “Bluebloods” has joined Clean Fuels Alliance America in a campaign to raise awareness about Bioheat Fuel, an environmentally responsible and sustainable energy solution It’s an eco-friendly and sustainable home heating solution derived from plants, including soybeans. Wahlberg, a Boston native, is excited about promoting a cleaner future, especially in the Northeast. Bioheat fuel is a renewable energy source that blends traditional heating oil with biodiesel, significantly reducing carbon emissions and environmental impact. Wahlberg’s partnership with Clean Fuels is driven by a shared commitment to promoting sustainable energy solutions and fostering environmental responsibility. “Donnie’s involvement adds a powerful voice to our campaign, bringing attention to the positive impact of Bioheat fuel on a local and global scale,” says Clean Fuels CEO Donnell Rehagen. “We believe that together, we can inspire positive change and encourage individuals to make the switch to cleaner, more sustainable heating options.” *********************************************************************************** Promoting Agroforestry on Farms Propagate and the Rodale Institute announced a new partnership to promote agroforestry. The collaboration’s goal is to increase the adoption of agroforestry and tree-cropping systems in North America. They say planting new agroforestry systems on farms is a win for farmers and the planet. Agroforestry systems introduce additional streams of income for farmers and boost the resilience of their operations. Increasing the number of farms across the country is also crucial to the health of the food system and climate stability. Regenerative practices like agroforestry promote overall soil health, store carbon in soils, accumulate woody biomass, improve water quality, promote biodiversity, and support pollinators. “Agroforestry is a critical tool for farmers and ranchers to improve both agricultural land and the environment,” says Rodale Institute CEO Jeff Tkach (catch). “Rodale and Propagate will further develop innovative research and expand producers’ access to actionable data that enables their adoption of regenerative practices.” *********************************************************************************** Nominations Open for 4R Program The Fertilizer Institute says nominations are open for the 2024 4R Advocates. These distinguished farmers and retailers are committed to implementing advanced fertilizer best management practices that incorporate the principles of 4R Nutrient Stewardship while demonstrating remarkable economic and environmental benefits. “Embracing the principles of 4R Nutrient Stewardship isn’t just a commitment for the fertilizer industry, but it’s a meaningful step towards helping countless American farmers enhance both their profitability and the health of the land,” says TFI President and CEO Corey Rosenbusch. “We take pride in the dedication of our industry’s retailers, who work hand-in-hand with farmers to put these practices into action in the field.” The 4R Advocates actively engage in TFI’s outreach efforts to promote responsible fertilizer management practices throughout the year. They do so by hosting farm field days, participating in conference panels, and sharing their insights and experiences with fellow farmers. More information is at tfi.org.
| Rural Advocate News | Wednesday January 17, 2024 |
Wednesday Watch List Markets Traders remain attentive to South American weather forecasts and events in the Middle East. U.S. retail sales for December are due out at 7:30 a.m. CST, followed by the Federal Reserve's report on U.S. industrial production at 8:15 a.m. The Fed's Beige Book will be released at 1 p.m. Due to Monday's holiday, the Energy Department's weekly inventory report will be out Thursday. Weather While the polar vortex remains in control over much of North America, there is some moderation from the drastically cold temperatures of the last few days across the north. Southern areas dove deeper into the cold with below-freezing temperatures through the Gulf of Mexico. A system in the Pacific Northwest continues to drop significant snow there that will bleed into the northwestern Plains as well, especially for Thursday.
| Rural Advocate News | Tuesday January 16, 2024 |
Tuesday Watch List Markets Back from a three-day weekend, traders will catch up on the latest weather forecasts for South America and news of attacks from the Red Sea. USDA's weekly report of export inspections is set for 10 a.m. CST. The National Oilseeds Processors Association will estimate members' soybean crush in December later Tuesday morning. Weather The polar vortex is firmly planted over the middle of North America on Tuesday and while the harshest temperatures have passed on from the Canadian Prairies and Northern Plains, it remains very cold across much of the country between the Rockies and Appalachians. A storm system is moving east and out of the country while the cold, arctic air settles.
| Rural Advocate News | Monday January 15, 2024 |
Final 2023 Crop Report Shows Jump in Corn Production USDA released its final 2023 Crop Production Report showing a rise in corn production and a drop in soybean production. 2023 corn production hit a record 15.3 billion bushels, 12 percent above 2022. The average yield was a record-high 177.3 bushels per acre, 3.9 bushels above 2022. Soybean production in 2023 reached 4.16 billion bushels, two percent lower than in 2022. The average yield was 50.6 bushels per acre, one bushel above 2022, but the production drop was due to four percent fewer harvested acres than the previous year. Meanwhile, the December WASDE Report calls for greater corn production, larger domestic use, and higher ending stocks. The season-average price is down five cents at $4.80 per bushel. In soybeans, supplies rose 31 million bushels over November’s prediction. Projected soybean ending stocks totaled 280 million bushels, up 35 million. The season-average soybean price is $12.75 a bushel, 15 cents below November. *********************************************************************************** USDA Reopening Signup for Continuous CRP The USDA will begin accepting applications for the Continuous Conservation Reserve Program signup on January 12. The Farm Service Agency encourages agricultural producers and landowners interested in conservation opportunities for their land in exchange for yearly rental payments to consider the enrollment options available through Continuous CRP. It also includes the Conservation Reserve Enhancement Program offered by FSA partners. Additionally, producers participating in CRP can apply to re-enroll beginning January 12 if their contracts expire this year. “Continuous CRP is one of the best conservation tools we can provide producers and landowners,” says FSA Administrator Zach Ducheneaux. “Whether a producer wants to focus on water quality benefits or work with one of our partners to address natural resource concerns in their area, the program offers many options to help meet those resource conservation goals.” To submit an offer, producers and landowners should contact their local FSA office by July 31. *********************************************************************************** USDA Releases Grain Stocks, Winter Wheat Seeding Reports USDA released its December 2023 Grain Stocks report that showed higher corn and wheat stocks in all positions, while soybean stocks dropped from 2022. Corn in all positions totaled 12.2 billion bushels, 13 percent above December 2022. Soybeans were estimated at three billion bushels, one percent lower than a year ago. All wheat on December 1, 2023, totaled 1.41 billion bushels, eight percent above 2022. The winter wheat area planted for 2024 harvest is estimated at 34.4 million acres, six percent below 2023 but three percent higher than in 2022. Kansas and Texas, the two states with the largest acreages, are expected to be down seven and eight percent, respectively. Michigan and Utah were expected to plant a record-low number of acres. Hard Red Winter Wheat seeded area is expected to be 24 million acres, five percent below 2023. The largest drop in planted acres is in Kansas and Texas. *********************************************************************************** Radio Hand-In-Hand With the Future The Consumer Electronics show in Las Vegas, Nevada, had plenty to offer in the way of future technology, including self-driving cars and Artificial Intelligence. Radio Ink says broadcasters should be encouraged that radio continues to show up at a high-tech event like CES. Radio’s largest presence was in the car, just like in everyday life. One company showed off the DTS AutoStage technology in a BMW. It offered a visual way to enjoy AM-FM and in-car games like Jeopardy. As electric vehicles continue to grow, companies are looking for ways to help drivers and passengers pass the time while their EVs charge. The same company showed off adding HD radio to Harley Davidson motorcycles. John Deere showed off its future farmer-focused technology, which included radio still playing a big part of the in-cab entertainment system. That became more important when looking at agriculture’s push to preserve the AM band in rural America. *********************************************************************************** Farmland Market is “Resilient” The Farmers National Company says the farmland market seems to be moving into the new year maintaining the value increases it’s built during the last three years. That stability is in place despite increasing pressure from declining commodity markets, rising interest rates, and inflation. The sharp increase in land values last year which was driven primarily by strong commodity markets has slowed, but the value is holding steady. Buyer demand remains strong for good quality cropland in the Midwest, while the supply of available land remains limited. “These factors further play into the dynamics of the supply-demand scenario and remain a large factor in supporting current values in early 2024,” says Paul Schadegg, senior vice president of real estate operations for Farmers National. Local farmers/operators continue to be the principal buyers in almost 80 percent of Farmland’s sales transactions. “Available cash plays a role in buyer’s aggressiveness when bidding on land.” *********************************************************************************** Growth Energy Applauds Court Ruling The U.S. Court of Appeals in the 11th Circuit dismissed a case involving the Hunt Refining Company and the Environmental Protection Agency. The court ruled that the Small Refinery Exemption challenge brought by Hunt under the Renewable Fuels Standard couldn’t be heard by the court and should be heard instead by the Court of Appeals for the D.C. Circuit. Growth Energy CEO Emily Skor says the 11th Circuit Court validated what’s already known. “EPA’s denials of these SRE petitions were ‘nationally applicable’ and have nationwide effect, and challenges to the denials have only been brought to the D.C. Circuit Court,” Skor says. “Every time refiners seek to take RFS gallons out of the marketplace, that potentially impacts the entire renewable fuels market, no matter where those gallons get blended.” She also says the 11th Circuit rightly removed itself from the challenges and avoided contributing to a potential patchwork of inconsistent standards.
| Rural Advocate News | Friday January 12, 2024 |
November Pork Export Value Highest in Over Two Years Fueled by record performances in Mexico, Central America, and Colombia, November pork exports reached their highest value since November 2021. USDA data compiled by the U.S. Meat Export Federation says November pork exports reached 258,600 metric tons, up five percent from last year and the highest in six months. Export value rose two percent to $737.4 million, the highest since May 2021 and seventh-highest on record. From January through November, pork exports reached 2.64 million metric tons, eight percent higher than the previous year. “The momentum for U.S. pork is remarkable and very broad-based,” says USMEF President and CEO Dan Halstrom. Beef exports totaled just over 99,000 metric tons during November, 14 percent below the prior year and the second lowest in 2023. Value fell seven percent to $786 million. For the first 11 months of the year, beef exports were 13 percent lower than the record pace of 2022. *********************************************************************************** USDA Kicking Off the National Ag Classification Survey As the agency already prepares for the 2027 Census of Agriculture, USDA’s National Agricultural Statistics Service will conduct the National Agricultural Classification Survey on January 24. The survey, an important step in determining who should receive a 2027 Census of Agriculture questionnaire, will go to approximately 250,000 recipients to ask if they conduct agricultural activity. The results of the survey will ensure that every U.S. producer, no matter how large or small their operation, has a voice and is counted in the highly anticipated and influential agricultural census data. “This survey helps illustrate the breadth of American agriculture and enables USDA to get a complete count of all farmers and ranchers,” says NASS Administrator Hubert Hamer. “Every response matters. Even if a respondent doesn’t think the survey applies to their farm, we’d ask that they respond to the few screening questions.” NASS encourages recipients to respond securely online at agcounts.usda.gov. *********************************************************************************** USDA Investing in Biofuels The USDA is awarding grants worth $19 million to American businesses to increase the availability of biofuels in 22 states and give Americans cleaner and more affordable options at gas station pumps. Blending ethanol into gasoline has helped reduce fuel costs by approximately 25 percent, contributing to falling gas prices across the country. Gas prices are now under $2.99 in more than half of U.S. states and save the average driver more than $100 per month relative to peak prices. The agency is making the awards through the Higher Blends Infrastructure Incentive Program. “By increasing the supply of biofuels made here in the U.S., we are strengthening our energy independence, lowering costs for American families, creating new streams of income for agricultural producers, and bringing good-paying jobs to people in rural communities,” says Ag Secretary Tom Vilsack. The investments will help business owners install and upgrade biofuels infrastructure, including pumps. *********************************************************************************** Bipartisan Bill Would Support Organic Dairy Farmers Congresswoman Chellie Pingree (D-ME), a longtime organic farmer and House Ag Committee member, and Marc Molinaro (R-NY) introduced legislation to support organic dairy farmers. The Organic Dairy Data Collection Act would enhance data collection at USDA to better understand the costs associated with producing organic milk. “International trade challenges, adverse weather, and skyrocketing organic feed costs have created a dire economic situation for organic dairy farmers across the U.S.,” Pingree says. “These unique challenges require tailored solutions.” The bipartisan bill will help USDA better understand and address the challenges organic dairy farmers face. The bill directs USDA to collect and publish cost-of-production data for organic milk. It directs NASS to gather and report monthly data about the amounts that organic dairy farmers are being paid for organic milk. It also orders USDA, NASS, and the Economic Research Service to publish reports on the cost of production data by state and region. *********************************************************************************** Farm Bureau Awards Distinguished Service Honors Frank Lucas (R-OK) and former Iowa Farm Bureau President Craig Hill received the American Farm Bureau’s 2023 Distinguished Service Award and Farm Bureau Founders Award, respectively. The awards are the highest honors presented by AFBF. Lucas and Hill will be recognized during the 2024 American Farm Bureau Convention January 17-24 in Salt Lake City, Utah. AFB established the Distinguished Service Award in 1928 to honor individuals who have devoted their careers to serving the national interest in American agriculture. First presented in January 2017, the AFBF Founder’s Award for exemplary leadership, service, or contributions to Farm Bureau is presented in recognition of outstanding achievements and work in the interest of Farm Bureau. Lucas is a fifth-generation Oklahoma farmer and Congressman who’s been a defender of agriculture for over 40 years. Hill was the longest-serving member of the Iowa Farm Bureau Board of Directors before retiring as president in December 2021. *********************************************************************************** Combines See Solid Sales Gains Late in 2023 Combine harvester sales closed out the year ahead of 2022 levels, while almost all tractor segments saw declines in both the U.S. and Canada. The latest data from the Association of Equipment Manufacturers says total U.S. farm tractor sales fell 5.1 percent in December compared to 2022, while year-to-date sales came in 8.7 percent lower than the previous year. However, 100+ horsepower tractors grew 5.2 percent for the year and 3.6 percent in December. Combine harvesters finished 2023 with sales up 1.7 percent last month. The sub-40 horsepower segment led the yearly losses, falling 11 percent in 2023 on the heels of a 5.8 percent drop in December. For Canada, four-wheel drive farm tractor sales jumped 65 percent in December and finished the year up 44 percent overall. Overall unit tractor sales finished 2023 down 14 percent for December and 10.7 percent overall. AEM is still confident about long-term sales growth.
| Rural Advocate News | Friday January 12, 2024 |
Friday Watch List Markets The U.S. Labor Department's producer price index for December will be out at 7:30 a.m. Friday, one day after consumer prices were said to be up 3.4% from a year ago. USDA's WASDE, December 1 Grain Stocks and Winter Wheat Seedings reports are set for release at 11 a.m. CST. U.S. grain and livestock futures close at their normal times Friday and are closed Monday for Martin Luther King Jr. Day. Grain futures will trade next at 7 p.m. CST on Monday. Weather The second big storm of the week is moving into the Midwest Friday morning and will quickly deepen. It has already started to produce heavy snow from eastern Nebraska to Lake Michigan early morning and will expand from there. The deepening low-pressure system will create strong winds and blizzard conditions in the snow. To the south, heavy rain and thunderstorms have developed in the Mississippi Valley and will move east throughout the day. The rain will help to ease drought, but thunderstorms may be severe with strong winds the primary threat. Very cold, arctic air continues to spread through the Plains behind the system.
| Rural Advocate News | Thursday January 11, 2024 |
Agri-Pulse Poll Shows Farmers Support Donald Trump A new poll from Agri-Pulse and Stratovation Group finds farmers and ranchers support electing Donald Trump to another term as president. The effort shows 39 percent of surveyed farmers say they would most likely vote for Trump, while 19 percent indicated they would vote for Florida Governor Ron DeSantis. Just eight percent of surveyed farmers say they would vote for President Joe Biden. Of the 605 farmers that participated in the survey, 61 percent identified as Republicans, with 45 percent of that group favoring Trump. Ten percent of the survey participants identified as Democrats with 62 percent of those farmers supporting Biden. Another 18 percent of farmers identified as independents. Stratovation Group conducted the study between December 14-22, 20243, including farmers and ranchers from the Midwest, South and California. The first presidential primary vote comes Monday as Republicans hold the Iowa Caucus. *********************************************************************************** U.S. Wheat Imports Reach 6-year High U.S. wheat imports are forecasted to be at their highest in six years for the 2023/24 marketing year, according to USDA's Economic Research Service. Consecutive years of drought in key U.S. growing regions of hard red winter wheat have tapered U.S. output, elevating domestic prices. Millers have sought less expensive sources, including competitively priced wheat from the European Union. U.S. imports of hard red winter wheat, mostly from the EU, for 2023/24 are at 25 million bushels, a record high, and up from five million bushels from 2022/23. This trade flow is atypical as U.S. wheat imports are normally driven by hard red spring and durum wheat from neighboring Canada. In 2017/18, imports from Canada of both classes of wheat were elevated because of drought-related supply issues in the United States. While U.S. imports of hard red winter wheat are elevated in 2023/24, imports of soft red winter and white wheat are relatively close to normal levels. *********************************************************************************** Without More Funding, FCC Winding Down Broadband Program The Federal Communications Commission plans to start winding down the Affordable Connectivity Program as funding for the effort dries up. The FCC has emphasized the need for additional funding for program, and the White House recently made an additional funding request to Congress for $6 billion to keep the program going. With less than four months before the projected program end date and without any immediate additional funding, this week, the Commission expects to begin taking steps to start winding down the program to give households, providers, and other stakeholders sufficient time to prepare. FCC Chair Jessica Rosenworcel says in a letter to lawmakers, “If Congress does not provide additional funding for the ACP in the near future, millions of households will lose the ACP benefit that they use to afford internet service.” While Congress initially appropriated $14.2 billion for the ACP, more funding is needed to keep the program in place. The FCC expects funding to last through April 2024, running out completely in May. *********************************************************************************** Losses Projected for Lower Rio Grande Valley Due to Water Shortages A recent report by Texas A&M estimates a potential 2024 total loss in economic output of over $993.2 million due to the absence of irrigation water for crop production in the Lower Rio Grande Valley. The report examines the total economic impact on the region's agricultural production, which consists of row crops (and specialty crops absent irrigation water. In terms of employment, it would result in an estimated loss of over 8,000 jobs. The lack of irrigation water is in large part due to Mexico's failure to deliver water to the U.S. per the 1944 Water Treaty. According to the report, the current Mexican water deficit is the second-largest deficit in the last three decades. The Treaty obligates Mexico to deliver a minimum of 350,000 acre-feet annually, as an average, on a five-year cycle. Now in year four of the current five-year cycle, Mexico owes over 736,000 acre-feet of water. Because of the lack of water, the Texas International Produce Association reports vegetable and fruit plantings are down 25 – 100 percent, depending on the corp. *********************************************************************************** CHS Reports First Quarter Fiscal Year 2024 Earnings CHS Inc., the nation's leading agribusiness cooperative, released results for its first quarter this week, which ended November 30, 2023. The company reported quarterly net income of $522.9 million compared to $782.6 million in the first quarter of fiscal year 2023. Earnings were strong across all segments, although down from record first quarter earnings in fiscal year 2023. Revenues were $11.4 billion, compared to $12.8 billion in the first quarter of fiscal year 2023. In the Ag segment, continued robust meal and oil demand drove strong earnings in our oilseed processing business that were offset by weak U.S. export demand for grains and oilseeds. CHS President and CEO Jay Debertin says, "We continue to see the benefits of our diversified agriculture and energy portfolio, our strategic footprint, and investments in our supply chain." CHS reported pretax earnings of $169.7 million for agriculture, representing a $117.6 million decrease compared to the prior year period. *********************************************************************************** Nearly 21 Million Children Expected to Receive New Grocery Benefit This Summer The Department of Agriculture this week announced that 35 states, all five U.S. territories, and four tribes plan to be the first to launch the new, permanent summer grocery benefits program for children. Known as Summer Electronic Benefit Transfer, the program in 2024 will serve close to 21 million children, providing nearly $2.5 billion in grocery benefits. This is around 70 percent of the total population of children eligible for Summer EBT. Through the program, states will provide families with $120 per eligible child for the summer to buy food at grocery stores, farmers markets or other authorized retailers – similar to how SNAP benefits are used. Participating tribes will provide a benefit of the same amount that can be used to buy food at WIC-authorized retailers. Agriculture Secretary Tom Vilsack says, “Together we’re making progress in closing the summer hunger gap and ensuring children are nourished and healthy year-round.” USDA expects additional states and tribes will provide Summer EBT in 2025.
| Rural Advocate News | Thursday January 11, 2024 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, the consumer price index for December and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage will be out at 9:30 a.m., followed by the Treasury Department's federal budget statement at 2 p.m. Weather A strong storm will develop in the Southern Plains on Thursday, on the leading edge of the cold air of the polar vortex. The storm system will deepen over the Midwest on Friday and bring a swath of heavy snow from around Nebraska through Michigan. Strong winds developing with the system will create blizzard conditions in the heavy snow. Meanwhile, strong thunderstorms are possible again across the South-Central states Thursday and the Southeast on Friday. Arctic air has already started to leak into the Northern Plains and will spread out across the country behind this system.
| Rural Advocate News | Wednesday January 10, 2024 |
Consumers to Focus on Labels in 2024 The International Food Information Council’s annual food trends forecast predicts consumers will focus more on label claims this year. The report suggests the industry should expect a heightened emphasis on transparent food labeling, empowering shoppers to make informed decisions about the foods and beverages they consume. Labels such as clean, cold-pressed, and fermented, which consumers associate with healthfulness, will continue to be at the forefront. Actions by the Food and Drug Administration are bringing Americans closer to an updated definition of a “healthy” food. As far as consumers are concerned, the most common attributes they believe define a healthy food are fresh, low in sugar and good source of protein. IFIC’s Kris Sollid says, “Front-of-Package nutrition labeling will be a major focus in 2024 as U.S. food regulators roll out a new labeling proposal to help shoppers make easier, quicker, and healthier food decisions.” The proposal will spur a national conversation about the importance of reading food labels and the factors beyond labeling that influence personal food choices. *********************************************************************************** USDA Reminds Producers of Upcoming Discrimination Financial Assistance Deadline The Department of Agriculture this week reminded farmers, ranchers and forest landowners that January 13, 2024, is the deadline to apply for the Discrimination Financial Assistance Program. The program is made possible by the Inflation Reduction Act, which provided $2.2 billion in funding. Farmers, ranchers, and forest landowners who experienced discrimination by USDA in its farm loan programs before January 1, 2021, and/or are currently debtors with assigned or assumed USDA farm loan debt that was the subject of USDA discrimination that occurred before January 1, 2021, are eligible for the program. Applications may be submitted online through the program website at 22007apply.gov, in person at a DFAP local office, or by mail. The full list of offices and their operating hours can be found on the application website. After receiving feedback from potential applicants in September, USDA extended the deadline to January 13, 2024. This provided potential applicants six months to prepare applications. The previous deadline was October 31, 2023. *********************************************************************************** Court Upholds Iowa Agriculture Trespass Laws The 8th Circuit Court unanimously overruled a District Court and upheld Iowa’s 2019 and 2021 agriculture trespass laws as constitutional this week. After several organizations challenged the new law, the district court concluded that the intent requirement renders the law “viewpoint-based” and unconstitutional under the First Amendment. In the ruling, the 8th Circuit Court said, “We respectfully disagree, and therefore reverse.” The lawsuit was filed by groups including the Animal Legal Defense Fund and the Center for Food Safety, among others. Iowa Agriculture Secretary Mike Naig responded, “The Legislature and Gov. Reynolds enacted these laws to safeguard our ag community and protect our food security. It is welcome news that Iowa producers can now be protected from trespassers and it sends a clear message to those who maliciously target our livestock farms.” Critics described the laws as “ag-gag” laws, seeking to criminalize efforts to access and secretly record alleged animal abuse on farms. *********************************************************************************** Leaked Snake River Memo Springs Irrigation Concerns A leaked memo outlining mediation options for Lower Snake River dams has agriculture sounding alarm bells, especially those who rely on the river to irrigate. The solutions seek to improve fish population and reverse effects of hydroelectric power generation. However, Irrigation Today reports the solutions would decrease the energy availability and the water resource infrastructure dependent on the system's current framework. Nathan Bowen of the Irrigation Association says, "The proposed changes to the river system, particularly the breaching of dams, would have a dramatic impact on irrigated agriculture in the region." A letter from Pacific Northwest lawmakers regarding the leaked memo states, “Due to the document’s use of vague and imprecise language, it appears susceptible to misinterpretation.” The lawmakers expressed concerns with the outlined solutions in the memo, which includes language from the federal government stating that the solutions outlined in the memo must “be the path forward.” The concerns are not new, with legal battles pertaining to the system spanning decades. *********************************************************************************** U.S. Apricot Production Trends Lower Data from USDA's Economic Research Service shows U.S. apricot production is declining significantly. Their production has been decreasing since the 1990s in response to falling U.S. consumption, especially for processed apricots. Commercial production is concentrated on the West Coast, with California representing 90 percent of apricot production in 2023. The U.S. apricot industry has experienced a long-term downward trend in bearing acreage, falling 62 percent over the past 20 years. Growing competition from imports of processed apricot products and a general increase in consumption for all fresh fruit have encouraged growers to divert more of their acreage to higher valued commodities, resulting in fewer bearing acres of apricots and shifts in use. The downward trend in production has coincided with a decrease in the share of apricots used in the processing market. During the first three seasons of this decade, processed utilization has averaged 45 percent—down from 63 percent during the early 2010s and 89 percent in the early 1980s. *********************************************************************************** Grains Council Launches Website Highlighting Sustainability The U.S. Grains Council just released four new web pages focused on the organization's sustainability efforts. The web pages provide information and resources on the practices and technologies that contribute to the sustainability of U.S. farms and agribusinesses. The pages showcase USGC’s commitment to global climate efforts and how it is working with its members and international stakeholders to address sustainability challenges in the food, feed, fuel and fiber international supply chains in which the products it represents participate. Carlos Suarez, USGC manager of sustainability, policy and innovation, says, “The Council is in a unique position to help barley, corn and sorghum farmers showcase their journey in adopting sustainable production practices and align with international supply chain requirements.” The Council's goal is to increase the volumes of sustainably-produced U.S. grains that reach international markets to support global food security and climate-smart international supply chains. Find the pages at grains.org.
| Rural Advocate News | Wednesday January 10, 2024 |
Wednesday Watch List Markets Brazil's crop agency, Conab, will have new crop estimates out Wednesday, typically early morning. The U.S. Energy Department's weekly inventory report is set for 9:30 a.m. CST. Traders remain attentive to South American weather forecasts and the world's events. Weather The first major winter storm of 2024 is exiting to the northeast on Wednesday, but it will not stay quiet long. The polar vortex is building over the western half of North America, pulling down arctic air into western Canada that will spill southeast behind an initially weak system across the Northern Plains on Wednesday into Thursday. The storm will become much stronger for Thursday and Friday, following a similar track to the one from early in the week.
| Rural Advocate News | Tuesday January 9, 2024 |
USDA Announces Market Development Program Investments for Fiscal Year 2024 The USDA’s Foreign Agricultural Service is awarding more than $200 million to nearly 70 agricultural organizations to help expand export markets for U.S. food and agricultural products. The expansion efforts will happen through the Market Access Program and the Foreign Market Development Program. “Over the year, we’ve seen the tremendous impact both MAP and FMD have on expanding U.S. exports to markets around the world,” says FAS Administrator Daniel Whitley. “For each dollar invested in export market development, U.S. agricultural exports have increased by more than $24.” He calls these programs a “significant boost to the agricultural industry,” which, in turn, helps strengthen the economies of communities across the entire United States. Through MAP, FAS will provide $174.3 million for fiscal year 2024 to 68 nonprofit organizations and cooperatives. Under FMD, FAS will allocate $27 million to 20 trade organizations that represent American agricultural producers. To learn more, visit fas.usda.gov. *********************************************************************************** Philippines Extends Lower Tariff Rates on Pork Through 2024 The Philippines extended reduced tariff rates on imported pork for the third consecutive year. The in-quota duty remains 15 percent, while the out-of-quota rate is 25 percent. Under the lower tariffs and higher access volume, U.S. pork exports to the Philippines increased to a record $205 million in 2021, a 79 percent hike. But after the increased quota amount expired on January 31, 2022, exports fell that year to about $135 million, and for 2023 they will likely be around $120 million. The National Pork Producers Council says the Philippines is an important Asian market for America’s pork industry. With more than 109 million people and a cultural preference for pork, the island nation is a top ten market for U.S. pork exports. In May 2021, in response to a pork shortage caused by African Swine Fever, the Philippines first lowered the import duties and increased the minimum access volume. *********************************************************************************** Dietary Guidelines Committee to Meet The next meeting of the 2025 Dietary Guidelines Advisory Committee is on January 19, starting at 8:30 a.m. Eastern Time. It’s convened jointly by the U.S. Department of Health and Human Services and the U.S. Department of Agriculture. During the event, the committee will hear updates from each subcommittee and discuss progress made since the third public meeting. Some of the topics include protocol development, evidence review and synthesis, draft conclusion statements, and plans for future committee work. HHS and USDA invite the public to participate in this important event by registering in advance to view the livestream. A recorded version of the livestream will be posted on DietaryGuidelines.gov after the meeting. Since the first edition in 1980, the Dietary Guidelines for Americans provided science-based advice on what to eat and drink to promote health, reduce the risk of chronic disease, and meet nutrient needs. For more information, go to usda.gov. *********************************************************************************** USDA: Chronic Disease Linked to Food Security Adults in U.S. households that are less food secure are significantly more likely to have one or more chronic diseases, and the likelihood increases as food insecurity worsens. Researchers with the Economic Research Service looked at the rate of five chronic diseases across four levels of household food security, ranging from high food security to very low food security. High food security households have no problems or anxiety about consistently obtaining adequate food. Very low food-secure households feature eating patterns of one or more household members that got disrupted and reduced their food intake. From 2019-2022, the predicted illness prevalence among the five chronic diseases examined was 3.6 to 9.5 percentage points higher for adults in very low food-secure households compared to those with high food-secure households. For example, hypertension was found in 36 percent of very low food secure households, showing that food security status and health are closely linked. *********************************************************************************** Fuel Prices Continue New Year Declines For the second straight week, GasBuddy says the nation’s average price of gasoline has declined, falling 3.8 cents from a week ago to $3.03 per gallon. “Sluggish gasoline demand has led to the national average easing again and brings back the potential for the national average to drift under $3 per gallon for the first time since 2021,” says Patrick DeHaan of GasBuddy. “With a record rise in gasoline inventories last week as demand was anemic during the holidays, motorists have provided the catalyst for falling prices.” He also says if demand remains weak, it’s possible gasoline prices could fall further. In addition, refinery issues in California have also eased, which will soon cause prices to decline in California, Nevada, and Arizona, possibly providing momentum for a $2.99 national average. However, the better it gets now, the sharper the rise could be ahead of spring, as prices could start rising by mid-February. *********************************************************************************** Taylor Leading Trade Mission to India USDA’s Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an agribusiness trade mission to India from April 22-25. USDA is now accepting applications from U.S. exporters who wish to join the trade delegation. “There is no larger untapped market in the world for U.S. agriculture than India and its 1.4 billion consumers,” Taylor says. “We achieved notable tariff reductions this year on chickpeas, lentils, almonds, walnuts, apples, frozen turkey, and many other products that will open market opportunities for U.S. farmers in the world’s most populous country.” Total U.S. agricultural and related product exports to India, Nepal, and Sri Lanka exceeded $2.5 billion in 2022. January through October 2023 exports reached more than $1.7 billion. India leads the region as one of the fastest-growing economies in the world. The deadline to apply for the India trade mission is Monday, January 22. For information and to apply, go to fas.usda.gov.
| Rural Advocate News | Tuesday January 9, 2024 |
Tuesday Watch List Markets While a winter storm works eastward across the U.S., traders remain attentive to the latest forecasts for South America. The U.S. Commerce Department's trade deficit for November is set for 7:30 a.m. CST, the source of ag export data USDA will make available later Tuesday morning. The Energy Department's Short-term Energy Outlook is due out Tuesday. Weather A major winter storm continues to build across the middle of the country but is pushing east for Tuesday, which is spreading heavy snow across the Midwest and heavy rain for the East Coast. With strong winds circling the low-pressure center, blowing and drifting snow along with near-blizzard conditions will continue in the Plains and Midwest and create other hazards for those in the South and East. Heavy showers and thunderstorms may be severe in the Southeast. Another large winter storm is going through the Pacific Northwest with widespread heavy snow and wind, but will be weaker as it crosses the Rockies into the Northern Plains and Prairies later today
| Rural Advocate News | Monday January 8, 2024 |
Food Price Index Drops in December The U.N.’s Food and Agricultural Organization says world food prices dropped in December. The Food Price Index, which tracks monthly changes in the prices of globally traded commodities, averaged 188.5 points in December, down 1.5 percent from November and 10 percent lower than December 2022. For 2023, the index was 13.7 percent lower than the average value of 2022, with only the international sugar price index higher during the period. The Cereal Price Index rose 1.5 percent from November, but the yearly index was 15 percent below 2022. The Vegetable Oil Price Index dropped 1.4 percent from November, and for the year was 33 percent below 2022. The Sugar Price Index dropped 17 percent from November, but still finished 15 percent higher than December 2022. The Meat Price Index dropped one percent from November, hitting a level of two percent below December 2022. The Dairy Index rose 1.6 percent from November. *********************************************************************************** U.S. Wheat Associates Launch Stewardship Video Series The time and effort American farmers put into caring for the land makes for a story that isn’t shared often enough. A new video series from U.S. Wheat Associates aims to change that for overseas wheat buyers by focusing on how producers help feed the world while also acting as stewards of soil, water, and the environment. USW’s “Stories of Stewardship” project goes right to the source. Five wheat farmers in five different states appear on camera from their farms to talk about their work and to assure economic security for the next generation of farmers by leaving their land in better shape than it was when they started farming it. “Consumers around the world want to know how their food is grown, and U.S. wheat is definitely a food ingredient,” says USW Vice President of Communications Steve Mercer. Stories of Stewardship can be seen on the USW website and Facebook page. *********************************************************************************** USGC Touts U.S. Corn Quality in China The U.S. Grains Council’s office in Beijing, China, recently hit the road to present the 2023-2024 Corn Harvest Quality Report, discuss sorghum opportunities, and protect market share for U.S. coarse grains. The Council conducted a corn quality roadshow and seminar in two of China’s most populated provinces. “More than 60 traders and end-users from all over China attended our seminar to learn about the harvest quality of our 2023-2024 U.S. corn crop and other critical topics affecting the global coarse-grain market,” says Manuel Sanchez, USGC Director in China. “As one of the primary destinations for American corn and sorghum, it’s vital that the Council engage with customers in China to share the latest market information.” In addition to reviewing the report, the seminars welcomed speakers who discussed the challenges and opportunities for corn globally, the current drought hitting the Panama Canal, and a 2023 U.S. sorghum harvest and market outlook. *********************************************************************************** Midwest Weather Staying Warmer and Drier Than Normal The Midwest Climate Hub says warm and dry was the theme during December in the North Central U.S. There have been exceptions, including a Christmas system that dropped multiple inches of precipitation in certain areas. The region saw both one and two-class improvements and degradations in drought status, and concerns are starting to weigh heavily on whether soil moisture will be recharged this winter. The next three to five months are expected to follow a typical El Niño weather pattern overall. That means temperatures will lean warmer for the region, and conditions will be drier for the northern and eastern states in the Midwest. It’s about the 180th week of D1 drought in parts of Iowa, which is the longest stretch since the 1950s. Exceptional drought continues in southeast Nebraska, with some places in exceptional drought for the past five months. Temps have been above normal for the last 30 days. *********************************************************************************** ALB Holding Targeted Grazing Workshops Paid grazing contracts present a tremendous opportunity for the growth of the U.S. sheep flock and improving the availability and price competitiveness of American lamb. It’s also an opportunity to reduce greenhouse gas emissions through green energy production and biological vegetation management. Training is needed to ensure sheep producers are prepared to take advantage of these grazing contract opportunities. “Improving the sustainability of the U.S. sheep industry through profitable growth is a top priority of the American Lamb Board,” says ALB Chair Peter Camino (kah-MEE-know). “ALB is committed to ensuring new and experienced shepherds receive education and resources to become successful contract grazers.” ALB’s grazing workshops will outline new and existing opportunities through targeted grazing across the U.S., including fire suppression, vineyards, and solar grazing. From animal performance to contracts and business setup, the workshops will cover the information they need to be successful service providers. For more information, go to americanlambboard.com. *********************************************************************************** Millions of Birds Die During Two Years of Bird Flu One-fourth of America’s bird flu losses during outbreaks beginning in early 2022 were recorded during the final quarter of 2023. USDA data says that’s when the disease staged a resurgence. Approximately 20.9 million birds were culled in infected domestic flocks from October through December to prevent the spread of highly pathogenic avian influenza. Successful Farming says bird flu hit egg farmers so hard that prices in 2022 soared 32 percent above the average in 2021. That’s the largest increase for any food categories USDA tracked during a year of high food inflation. As flocks got rebuilt, egg prices rose marginally in 2023 and are expected to fall 12 percent this year. A total of 79.7 million domestic birds, mostly egg-laying hens and turkeys being raised for human consumption, died in HPAI outbreaks or eradication efforts since February 2022. Since then, the disease has been confirmed in 1,059 flocks in 47 states.
| Rural Advocate News | Monday January 8, 2024 |
Top 5 Things to Watch - Winter Storm, WASDE and More 1. WASDE Friday: This week marks the release of several important USDA reports, including the "final" corn and soybean yield and production numbers of the 2023 U.S. crop season. The January World Agricultural Supply and Demand Estimates (WASDE) report hits the wires at 11:00 a.m. We will post those numbers shortly after 11, with updates and analysis throughout the morning. Our preview expectations for the report will be available mid-week. 2. Big storm coming: A broad winter storm rolls into the upper Plains early in the week. As DTN Ag Meteorologist John Baranick noted in his latest Ag Weather Forum blog, this is really the first concentrated monster storm of the season. Livestock health is one of the chief concerns, as this storm will be for some areas the first bitter taste of winter some animals will get. 3. Speaking of weather: Grain traders continue to watch how South American crop conditions are shaping up, as that part of the world continues to be the market trend maker. We'll have updates in a number of spots, from the Ag Weather Forum blog to our daily market commentary. DTN customers should know that the latest global market conditions lead to us finishing up marketing of the 2023 corn crop this past week, while we continue to recommend holding a bit of soybean harvest. T 4. Cattle looking for news: A New Year uptick in cattle futures prices that started this past week ran out of gas by week's end. We'll watch for potential weather-driven trade disruption, though the general call is for steady prices in live trade and limited sales activity. 5. Economic reports to watch: On Monday, weekly grain inspections will be released at 10 a.m. The latest Consumer Credit report is out at 2 p.m. On Tuesday, the latest trade deficit numbers are at 7:30 a.m. Final field crop estimates will be released at 2 p.m. Wholesale inventories are out Wednesday at 9 a.m., with the weekly petroleum report at 10 a.m. That report includes ethanol production and inventory. On Thursday, economic attention turns to the Initial Jobless Claims report, the Consumer Price Index (CPI) and Core CPI numbers, all due at 8:30 a.m. U.S. grain export sales will be released at 7:30 a.m., with Hogs and Pigs Final Estimates out at 2 p.m. Finally, Friday kicks off with the Producer Price Index (PPI) and Core PPI out at 7:30 a.m. At 11 a.m. is WASDE, January Crop Production, the Dec. 1 Grain Stocks numbers and winter wheat seedings.
| Rural Advocate News | Monday January 8, 2024 |
Monday Watch List Markets Back from the weekend, traders will continue to monitor South American weather and Middle East tensions. USDA's weekly report of export inspections will be out at 10 a.m. CST, the only significant report on Monday. Weather A storm system has been building from Sunday night into early Monday across the Central and Southern Plains, bringing a mix of rain and snow to the region. The storm will turn into a monster by midday and shift to the Mississippi Valley overnight. Widespread impacts including severe weather across the Gulf Coast, heavy snow and blizzard conditions from the southwestern Plains to the Midwest with strong winds elsewhere, and flooding rain will create a host of issues for travel and anyone or anything that is outdoors.
| Rural Advocate News | Friday January 5, 2024 |
Over 1,250 Producers Qualify Under Prop 12 The California Department of Food and Agriculture says there are more than 1,250 agricultural producers and distributors in compliance with Proposition 12. After multiple delays brought on by court challenges and the need for a Supreme Court ruling, Prop 12 is now in effect. The CDFA says the more than 1,250 producers are prepared the meet the state’s demand for cage-free eggs and crate-free pork after the measure took full effect on January 1. California voters initially approved Prop 12 in November 2018, with the provisions originally intended to be in place by January 2022. “Final implementation of Prop 12 not only provides the prospect of dramatically better living conditions for pigs in U.S. agriculture, but it also all provides a critical market for thousands of pig farmers who don’t rely on immobilizing crates as a routine animal-housing practice,” says Wayne Pacelle, a Prop 12 architect and president of Animal Wellness Action. *********************************************************************************** Missouri Bans Foreign Ownership of Some Farmland Missouri Governor Mike Parson announced a ban on agricultural land purchases by citizens and businesses from six nations if the property is within ten miles of critical military facilities. Parson says he had countries like “China and other adversarial nations” in mind when issuing an executive order on the topic. The order puts the state Ag Department in charge of reviewing all proposed purchases of farmland by foreigners The Ag Department is to deny all proposed purchases within ten miles of military facilities by entities from China, Russia, Iran, North Korea, Cuba, and Venezuela. Missouri is the latest state to restrict foreign ownership of U.S. farmland amid rising international tensions. Arkansas recently ordered Syngenta, owned by ChemChina, to sell a 160-acre research farm. Foreign investors own 43.4 million acres, or 3.4 percent of privately-held agricultural land, which includes 474,000 acres in Missouri. The executive order doesn’t affect existing farmland ownership. *********************************************************************************** Weather Mixed in Winter Wheat Country A USDA report says December weather was a mixed bag for winter wheat producers. Timely precipitation in major wheat-growing states like Kansas, Colorado, Oklahoma, and Arkansas boosted the crop. In Kansas, the top-producing state, about 43 percent of the hard-red crop was in good or excellent condition in December. Thirty-six percent was in fair condition, with the rest poor to very poor. An average of 2.7 inches of rain fell in Oklahoma last month, with more than three inches in west central counties. While no condition report was available, 22 percent of the state was suffering from drought, down from 47 percent three months earlier and 90 percent a year ago. In Colorado, 61 percent of the winter wheat crop was in good or excellent condition, up from 50 percent last year. In Arkansas, where soft-red winter wheat is grown, topsoil moisture was 69 percent surplus and 26 percent was adequate. *********************************************************************************** USDA Investments in Risk-Management Training The USDA’s Risk Management Agency announced that $3 million is available for cooperative growth agreements to educate underserved, small-scale, and organic producers on risk management. The educational opportunities can also include climate-smart practices. RMA’s Risk Management Education Partnerships provide funding for organizations like non-profits and land grant universities to develop training and resources for producers about risk management options like crop insurance. “This funding is integral to our outreach efforts in communities that historically have not had access to training about risk management options,” says RMA Administrator Marcia Bunger. “As a farmer, I know first-hand that agriculture is a risky business.” Bunger also says they want to work directly with growers and livestock producers to provide them with training and resources about risk management options and applying them to the farming business. A broad range of risk management activities are eligible for funding consideration, including training on crop insurance options and others. *********************************************************************************** Registration is Open for the Animal Agriculture Alliance Summit Registration is now open for the 2024 Animal Agriculture Alliance Stakeholders Summit. The event features dozens of speakers, hundreds of perspectives, and countless ideas. That’s just the starting line of the Animal Agriculture Alliance’s Summit. The group says, “It’s going to take a team to drive our future forward. It takes everyone running alongside their fellow stakeholders from across the food chain who know that putting in the work is the only way to transform today’s challenges into tomorrow’s solutions.” The annual Stakeholders Summit is a one-of-a-kind conference attended by a very diverse group. Stakeholders in attendance include representatives from farms, ranches, allied industries, food processors, restaurants, grocery stores, legislatures, universities, government agencies, and media members. The AAA is also excited to announce that Amanda Lucey, CEO of The Partnership, a marketing and brand communications agency, will serve as this year’s moderator for the event. For information, go to animalagalliance.org. *********************************************************************************** Women in Ag Tech Meeting This Month Women in Ag Tech announced its second in-person meeting on January 21-22 will take place during The VISION Conference at the Glendale Hotel in Phoenix, Arizona. Women in Ag Tech (WAT) continues to champion opportunities for women in agricultural technology and foster a vibrant community through mentorship, idea exchanges, and collaboration. The event promises an enriching experience for attendees, featuring a keynote address, panel discussions, and interactive sessions led by industry professionals. Lara Sowinski of CropLife Media Group will lead the meeting. An FBI Special Agent will deliver the keynote called “Cultivating Resistance: A Women in Ag Tech’s Insights on Food Safety, Cybersecurity, and Leadership in STEM.” The Women in Ag Tech meetings aren’t about only sitting and listening. “Here, we come together as women to actively learn, engage, and support one another,” Sowinski says. “It’s a fresh and dynamic approach, setting it apart from the usual conference experience.”
| Rural Advocate News | Friday January 5, 2024 |
Friday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Friday, the same time as the Labor Department's nonfarm payrolls and unemployment rate for December. A report on U.S. factory orders for November follows at 9 a.m. Traders will remain attentive to South American weather and tensions in the Middle East. Weather A storm system that developed in the Central and Southern Plains on Thursday has brought areas of rain and snow into early Friday. That storm system will continue eastward for Friday, getting into the Southeast for Saturday. The storm may clip the southern end of the Midwest and some lighter snow will be possible farther north in the Northern Plains and Upper Midwest.
| Rural Advocate News | Thursday January 4, 2024 |
Analysis: Corn Futures Fall More Than 30% in 2023 Grain futures ended 2023 significantly in the red, with corn futures suffering their biggest yearly drop in a decade, according to a new analysis by the University of Illinois' Farm Policy website. Wheat and soybeans also posted steep declines in 2024 following bumper harvests in Brazil and resilient Black Sea trade. The most active corn contract was down 31 percent in 2023, while wheat was down 21 percent, and soybeans were down 15 percent. Mike Zuzolo, president of Global Commodity Analytics, adds, "In 2024, producers are going to be a lot more concerned about their input costs, and that is where beans play a much better role for them." The Department of Agriculture also expects soybean acres to increase in 2024, with the November World Agricultural Supply and Demand Estimates report predicting that U.S. farmers will plant 87 million acres of soybeans in 2024, an increase of 3.4 million acres. Corn acres are expected to be 91 million acres, a decrease of 3.9 million acres, according to the USDA. *********************************************************************************** USDA and USTR Seek New Trade Advisory Committee Members The. Department of Agriculture and the Office of the U.S. Trade Representative are accepting applications for new members to serve on agricultural trade advisory committees. Members of the committee provide advice to the administration on the implementation and enforcement of existing U.S. trade agreements, negotiation of new agreements, and other trade policy matters. Members of the six Agricultural Technical Advisory Committees, or ATACs, provide technical advice and recommendations on international trade issues that affect specific agricultural commodity sectors. The ATACs focus on trade in Animals and animal products, fruits and vegetables, grains, feed, oilseeds, planting seeds, processed foods, Sweeteners and sweetener products, tobacco, cotton, peanuts, and hemp. Applicants must have U.S. agriculture expertise and international trade experience to be considered for committee membership. Committee members serve four-year terms and represent a cross-section of U.S. food and agricultural stakeholders. Application instructions are available on USDA's Foreign Agricultural Service website. Applications must be received by 5 p.m. ET on January 31, 2024. *********************************************************************************** SNAP Participation Varied Across States in Fiscal Year 2022 New data released by USDA's Economic Research Service shows that in fiscal year 2022, USDA's Supplemental Nutrition Assistance Program served an average of 41.1 million people per month in the 50 states and Washington, DC. SNAP is the largest domestic nutrition assistance program, accounting for about two-thirds of USDA spending on food and nutrition assistance in recent years. The SNAP participation rate increased nationwide during the COVID-19 pandemic to a high of 12.5 percent of the resident population of the 50 States and DC in fiscal year 2021. The fiscal year 2022 rate fell slightly to 12.3 percent. SNAP participation varies across states because of differences in program administration and economic conditions. In fiscal year 2022, the share of residents receiving SNAP benefits in each state ranged from as high as 24.5 percent in New Mexico to as low as 4.6 percent in Utah. In 35 States, the share was somewhere between eight and 16 percent. *********************************************************************************** U.S. Demand for Organic Cotton Growing Demand for organic cotton in the U.S. is growing, but imports continue to pick up the slack of inadequate domestic production. A new project led by Texas A&M AgriLife Research aims to turn the situation around by identifying the challenges and opportunities for U.S. organic cotton growers. The study, Fostering Sustainable Organic Cotton Production in the U.S. Through Research and Outreach on Organic Regenerative Practices, is funded by a $3.5 million U.S. Department of Agriculture National Institute of Food and Agriculture grant. Researchers expect the study to help U.S. organic cotton producers determine how to improve yields, productivity, and sustainability in their existing fields and transition more acreage into organic production. Organizers say, "We want to understand what their production challenges are, how they are managing them, what works and what doesn't, and how their practices are impacting the soil and output long-term." With no synthetic herbicides allowed, the project will identify other methods that might minimize the tillage needed for weed control. *********************************************************************************** Workshop Series for Veterans Focuses on Agritourism Military veterans interested in agriculture are invited to attend a series of on-farm and virtual workshops highlighting farm stores, onsite and off. The course is free for active military service members and military veterans. Hosted by the Center for Rural Affairs, the 11-session series, “Agritourism through Farm Stores,” starts February 19 and runs through August. The workshops will rotate between online classroom sessions and on-farm sessions with an online option. Kirstin Bailey, senior project associate for the Center, says, "During the on-farm sessions, experienced farmers will go through the ins and outs of on- and off-site farm stores, how they set up their on-farm buying experiences, and challenges they have faced." Session topics include obtaining proper equipment, maintaining adequate facilities, setting up purchasing systems, and more. Farmer-leaders with experience in various types of agriculture and agritourism, such as poultry, pork, beef, and beekeeping, will be available to assist participants throughout the course's online platform. Find a detailed schedule, including dates and times of sessions, online. *********************************************************************************** Minnesota Farm Bureau to Host Urban Ag Conference State Farm Bureau officials in Minnesota are focusing on urban agriculture with an upcoming conference next week. The Minnesota Farm Bureau will host an Urban Agriculture Conference on the St. Paul campus of the University of Minnesota - Twin Cities on Saturday, January 13. The free event will focus on issues related to urban agriculture, including land access, water access and funding. The event features speakers from USDA, the Minnesota Department of Agriculture, the Minnesota Farm Bureau, state educational faculty, and elected officials from the state. Other topics include roof-top solar arrays, hydroponics, urban planning and urban food systems. Another session will focus on technical assistance on how to apply for grants and other funding. Organizers say they may hold similar events in places like Duluth, St. Cloud and other parts of the state to expand their outreach to urban farmers. Registration for the event is available on the Minnesota Farm Bureau website.
| Rural Advocate News | Thursday January 4, 2024 |
Thursday Watch List Markets Weekly U.S. jobless claims and an update of the U.S. Drought Monitor will be out at 7:30 a.m. CST Thursday. The Energy Department's report on natural gas storage is set for 9:30 a.m., followed by the Energy Department's weekly inventory report at 10 a.m. Traders will keep an eye on South American weather and events in the Middle East. Weather A storm system will move out of the Southwest and into the Central and Southern Plains on Thursday, bringing a mix of rain and snow to the region. Other areas of the country will be rather quiet outside of the West, where showers will continue.
| Rural Advocate News | Wednesday January 3, 2024 |
U.S. Farmer Sentiment Stable As Inflation Expectations Subside Farmer sentiment changed very little in December compared to the preceding month. The Purdue University-CME Group Ag Economy Barometer recorded a reading of 114, just one point lower than a month earlier. Both sub-indices of the barometer, the Index of Current Conditions and the Index of Future Expectations, also fell one point below their respective November readings. The Current Conditions Index for December was 112, while the Future Expectations Index was 115. All three indices were weaker than in December 2022, with the barometer falling ten percent below a year earlier. Farmers still pointed to input costs at year-end as their top concern for the year ahead, but the percentage of farmers choosing the risk of lower crop and/or livestock prices rose from just 16 percent in January to 26 percent in December. Inflation expectations among farmers moderated during 2023. Compared to a year earlier, far fewer producers expect inflation to exceed six percent in the new year, and a large majority look for inflation to average less than four percent in 2024. *********************************************************************************** USDA to Reconvene FMMO Hearings The Department of Agriculture (USDA) will reconvene the national public hearing to consider proposals seeking to amend the uniform pricing formulas applicable in all 11 Federal milk marketing orders. The process will restart January 16, lasting through January 19th, and reconvene again on the 29th, if needed. The hearing began August 23, 2023, and is being held in Carmel, Indiana. Copies of the notice to reconvene, guidelines for participating, and exhibits entered during the hearing are available on the National Federal Milk Marketing Order Pricing Formula Hearing webpage. Proponents contend that the uniform FMMO pricing formulas should be amended, as significant changes in the dairy industry and milk marketing have occurred since their adoption in the early 2000s. Forty proposals were submitted by stakeholders for consideration. Of those, 21 directly impact the uniform pricing formulas and are being considered at the hearing. Dairy producers may testify in person at any time during the hearing. *********************************************************************************** National Agricultural Law Center Recaps Top 2023 Issues The Waters of the U.S. rule rewrite topped the list of agricultural issues for the National Agricultural Law Center in 2023. While WOTUS was the top issue for 2024, California’s Proposition 12 came in second, with the one-year Farm Bill extension third. The organization listed EPA’s rollout of the Endangered Species Protection Program and the Federal Insecticide, Fungicide, and Rodenticide Act fourth. Other top issues include the Arkansas foreign ownership of land restrictions, competition in the livestock sector and water use from the Colorado River. Right to repair gained traction as farmers continued to advocate for the right to access manufacturer-controlled tools and information. The list rounds out with growth in the industrial hemp sector and civil litigation over pesticides, such as glyphosate exposure. The organization expects corporate transparency rules requiring disclosure of ownership interests in companies, proposed H-2A changes and a myriad of issues before the Supreme Court as ones to watch for 2024. *********************************************************************************** GE Crops Dominate U.S. Soybean, Cotton, and Corn Acres New data from USDA's Economic Research Service shows Genetically engineered crops dominate the U.S. agriculture sector. Genetically engineered seeds were commercially introduced in the United States for major field crops in 1996, with adoption rates increasing rapidly in the following years. The two main GE trait types are herbicide-tolerant and insect-resistant. USDA reports information on GE crops in the data product Adoption of Genetically Engineered Crops in the United States. The data shows that by 2008, more than 50 percent of corn, cotton, and soybean acres were planted with at least one GE seed trait. Today, more than 90 percent of those acres are planted using at least one GE trait. Other traits have been developed, including resistance to viruses, fungi, and drought or enhanced protein, oil, or vitamin content. While herbicide-tolerant seeds are also widely used in alfalfa, canola, and sugar beet production, most GE acres are occupied by three major field crops: corn, cotton, and soybeans. *********************************************************************************** Programs offer U.S. Dairy Farmers Carbon-Asset Payments Three carbon projects initiated in 2021 and 2022 issued nearly $3 million in carbon-asset payments to U.S. dairy farmers who used Agolin® Ruminant to create verified emissions reductions. A verified emissions reduction is a carbon asset that can be used as an offset or within a value chain. It represents one metric ton of greenhouse gas emissions equivalent that is either avoided or removed from the atmosphere through an intervention that has been independently verified as part of a carbon reduction project. Agolin Ruminant is a proprietary blend of essential oils that improves milk production and feed efficiency in beef and dairy cattle. Concord Agriculture Partners has chosen Agolin Ruminant to create a new carbon inset project, which guarantees that participating dairy producers will receive an industry-leading 85 percent of the gross value of the carbon asset. Alltech, a global leader in agriculture, acquired a majority interest in Agolin SA in May 2023. *********************************************************************************** Fuel Prices Start 2024 With Decline Fuel prices began the new year declining after a late-year increase during the holiday season. GasBuddy reports the nation's average gasoline price reverted, falling 1.6 cents from a week ago to $3.06 per gallon. The national average is down 17.3 cents from a month ago and 12.6 cents per gallon lower than a year ago. The national average diesel price fell 4.5 cents last week and stands at $3.96 per gallon—71 cents lower than one year ago. GasBuddy's Patrick De Haan says, "The good news continues for average diesel prices, which slipped below $4 per gallon again and stand at their lowest level since the summer." Crude oil prices were up sharply in the first trading session of 2024, as the U.S. waged an attack on Houthi (who-thee) militants, downing three Houthi ships from a U.S. military helicopter. Forecasts projecting a rise in Chinese demand for its February Lunar New Year may have been boosting optimism and oil prices in early trade as well.
| Rural Advocate News | Wednesday January 3, 2024 |
Wednesday Watch List Markets After Tuesday's bearish closes, traders will remain fixated on anything weather-related for South America will continue to watch for private estimates of Brazil's soybean production, ahead of next week's updates from Conab and USDA. International indices of manufacturing will roll in overnight from various countries, followed by a manufacturing index for the U.S. at 9 a.m. The Energy Department's weekly inventory report will be out Thursday, due to this week's holiday schedule. Weather A small disturbance moving along the Gulf Coast will make for some significant showers for Wednesday, easing drought in the southern Delta a little bit. A larger storm system is moving through the Western U.S. that will create a bigger storm for the southern tier of the country starting on Thursday. Light snow will also move through the Great Lakes.
| Rural Advocate News | Tuesday January 2, 2024 |
K-State Researchers Make Gluten Breakthrough Kansas State University researchers report a breakthrough in developing wheat-based foods that contain lower amounts of gluten. It’s a discovery that could lessen the adverse effects of celiac (SEE-lee-ak) and other autoimmune diseases. Scientists from Kansas State, the Agricultural Research Service, and in partnership with Kansas Wheat successfully used the gene-editing technique called CRISPR (crisper) to reduce the presence of two types of gluten-coding genes. Gluten is a protein found in wheat, barley, and rye. When people with celiac disease eat gluten, their body mounts an immune response that attacks the small intestine and the small fingerlike projections that help the body absorb nutrients. Researchers admitted they were surprised that once the genes got edited, it reduced the immunotoxicity. However, gluten won’t be completely removed from wheat as it’s important for bread making. While the reduced gluten level achieved so far won’t make wheat safe for use, it’s an important step forward. *********************************************************************************** Farm Equipment Dealers Expect a Tough 2024 The ag equipment market began a downward trend a year ago. Dealers say that 2024 might be their roughest year since COVID in 2020. The “Dealer Business Outlook and Trends Report” shows a combination of recovering inventories, high interest rates, and a general economic downturn that has dealers preparing to weather a storm in 2024. The new survey showed a significant drop in optimism in dealers’ new and used whole goods revenue forecasts, while parts and service revenue forecasts hit record highs. The dealers aren’t facing the kind of equipment shortages that dampened their optimism in the previous report, but price increases remain a factor despite falling from 2022 peaks. There is some degree of optimism remaining based on healthy farm financials and solid commodity prices. However, the question of how much cash farmers will bring into the new year remains in question. Revenue projections are negative as demand declines. *********************************************************************************** POET Reports a Successful 2023 POET, the world’s biggest ethanol producer, celebrated several milestones in 2023. That included multiple victories on the policy front, the grand reopening of its 34th facility, and completing the first-ever bioproducts innovation center. “In 2023, our POET team worked hard to lead the charge toward the bioeconomy of the future,” says Jeff Broin, Founder and CEO of POET. Early in 2023, the company announced that it will be growing its bioCO2 capabilities with expansions at two of its bioprocessing locations. They say it’s a testament to the company’s commitment to providing a renewable CO2 solution for its customers and creating more value from every bushel of grain. POET’s government relations efforts also played a role in securing several policy-related victories during the year. Also, Nebraska passed an E15 mandate, which unlocks access to E15 at Nebraska fueling stations and provides qualifying retailers with a tax credit for every gallon sold. *********************************************************************************** SD Pipeline Dividing Ethanol Proponents Iowa-based Summit Carbon Solutions wants to build a pipeline in South Dakota to transport carbon dioxide from Midwest ethanol plants to underground storage in North Dakota. The company wants to gather emissions from 32 ethanol plants, including some in South Dakota. The project would be eligible for federal tax credits incentivizing greenhouse gas sequestration. Summit says no pipeline would break the Midwest ethanol industry and calls pipeline opponents “anti-ethanol.” The South Dakota Public Utilities Commission denied a building permit for Summit last year, citing county setback law violations. Corn farmers who have long supported ethanol were alarmed by the company’s use of eminent domain to acquire private land for the pipeline from roughly 160 farmers. South Dakota Farmers Union President Doug Sombke (SOMB-kee) says members feel betrayed. They supported a growing ethanol industry before facing an infringement on their property rights. Sombke says he’s furious at farmers being called anti-ethanol. *********************************************************************************** Drought-Stricken Areas Getting Winter Precipitation Dry conditions continued across parts of the South while heavy precipitation fell across Oklahoma and parts of central and eastern Texas. Large parts of Texas and Oklahoma received between two and five inches of rainfall, which is 300 to 600 percent above normal. Average temperatures in the Midwest were well above normal, as many as ten to 25 degrees higher than typical temps. Much of the region also received above-normal precipitation, especially along the western parts of the region where the heaviest amounts reached two to four inches of rainfall, anywhere from one to three inches above normal The above-normal precipitation helped alleviate longer-term precipitation deficits in the region. Heavy precipitation fell over much of the eastern High Plains, where rainfall totals were greater than 600 percent of normal. Exceptional drought was improved in eastern Nebraska. Precipitation fell in most of the Southeast while the western U.S. remained status quo. *********************************************************************************** Ethanol Production Hits Two-Year High The Energy Information Administration says ethanol output surged to a two-year high, and inventories hit their highest points since April during the week ending on December 22. Ethanol production rose to an average of 1.107 million barrels per day, up from 1.071 during the prior week and the highest level since October 2021. The Midwest, which produces the most U.S. ethanol, increased its output to an average of 1.047 million barrels a day, up from 1.009 million a week earlier. That was all the gains during the week as East Coast production was unchanged at 12,000 barrels a day, and Rocky Mountain output held steady at 14,000 barrels. West Coast production remained at 10,000 barrels per day for the second straight week. Gulf Coast output dipped to 24,000 barrels from 26,000 the prior week. Ethanol inventories jumped to 23.517 million barrels during the week, the highest level since April 21.
| Rural Advocate News | Tuesday January 2, 2024 |
Tuesday Watch List Markets Back from the three-day weekend and starting a new year, traders will catch up on South American weather forecasts and any news that may have popped up over the New Year weekend. USDA's weekly report of export inspections will be out at 10 a.m. CST Tuesday, followed by the NASS report of Fats and Oils at 2 p.m. Weather Much of the country will be quiet on Tuesday, though a weak system will develop over Texas with some showers and more will move into the West as well. Temperatures continue to be quite mild as we start the new year.
| Rural Advocate News | Friday December 29, 2023 |
December Rural Mainstreet Index Sank Creighton University’s Rural Mainstreet Index sank below growth neutral for a fourth-straight month in December. Based on a survey of bank CEOs in a ten-state region, the index rose to 41.7 from November’s 40.4. That’s still lower than October’s 44.4. The index ranges from 0 to 100, with 50 being growth neutral. Creighton University Economics Professor Ernie Goss says much of the rural economy is still getting pinched by higher interest rates. “Farming in the region is doing reasonably well,” Goss says. “However, agriculture sales abroad for the region are 14 percent lower.” Despite the fact that the Federal Reserve predicted possible rate cuts next year, bankers throughout the region still had somewhat of a pessimistic outlook for their region’s economy. “A little over 50 percent of the ag bankers say their area is in a recession right now or would be in the first half of 2024,” he adds. *********************************************************************************** U.S., Brazil Competitive Balance in Soybeans The U.S. and Brazil are major competitors when it comes to exporting soybeans around the world. USDA’s Economic Research Service did a comparison study to figure out how changes in factors underlying production, marketing costs, and infrastructure might affect export competitiveness. Among some of the key findings, the costs of production differed between the two, partially because Brazil relies on more custom services to provide equipment and labor in the field. U.S. farms tend to own their machinery. Average per-acre costs of producing soybeans per acre in Brazil were 19 percent below the U.S. in the marketing year 2021-2022 because of lower land and capital costs. Brazil’s producers had a higher national average return per bushel over total costs than the U.S. in 2021-2022 at $4.05 compared with $2.13. The U.S. Heartland was the lowest-cost exporter of soybeans. Parana in Brazil was the second-lowest shipper as it’s close to a port. *********************************************************************************** Minnesota Loses Almost 150 Dairies in 2023 Minnesota’s already-shrinking dairy sector lost another 58 dairy farm permits in November. That brings a total of 146 fewer dairy farmer permits at Christmas than the state had at the beginning of the year. While October, November, and December typically see dairy farms shut down, Minnesota Milk Producers Executive Director Lucas Sjostrom (SO-strom) says he hasn’t seen more than 50 in a single month for a long time. The numbers show just how razor-thin financial margins are under a crushing load of economic pressures. High input costs and low commodity values are squeezing margins only a year after the dairy industry was in the midst of higher prices for milk, cheese, and butter in the aftermath of COVID-19. Overall, Minnesota had a total of 1,825 permits as of December 1. The Minnesota Department of Agriculture says the state had more than 4,000 dairy farms as recently as ten years ago. *********************************************************************************** USDA Lists 2023 Successes USDA looked back at 2023 and said it’s been able to help tens of thousands of farmers continue their operations and increase their revenue. The agency also connected rural communities with internet access, advanced efforts to mitigate climate change, made investments to help small businesses get a leg up, and lowered energy and other costs for consumers. As of December 1, USDA has helped more than 30,000 farmers and ranchers who were in financial distress stay on their farms and keep farming. Since the Inflation Reduction Act was signed into law, the Farm Service Agency has provided nearly $1.7 billion and counting in immediate assistance to farmers in financial distress. At the same time, USDA greatly improved its loan application process to better serve farmers. In 2023, the Risk Management Agency helped provide the largest farm safety net in history at a total of $207 billion in protection for American agriculture. *********************************************************************************** Mormon Church Buys 370,000 Acres of Ranch Land The Mormon church has sparked some backlash from local farmers after snapping up about 370,000 acres of prime ranch land in Nebraska. The Utah-based religious organization now owns at least $2 billion worth of agricultural terrain across the country. It now owns an estimated $134 million worth of agricultural land in Nebraska and is on track to surpass CNN founder Ted Turner as the single largest landowner in the country. Nebraska Farmers Union President John Hansen told news outlets that the land grab was artificially driving up land prices and forcing out local farmers. “It’s not fair competition when folks bring in that much outside money and bid against local farmers and ranchers,” Hansen says. “They’ll become the number one landowner in the state if they continue this buying spree at the current rate.” The church is likely the largest landowner in Florida after buying almost 383,000 acres of timberland. *********************************************************************************** Slower Moving Markets to End the Year There hasn’t been much of a post-harvest rally to work with in the commodity markets. Successful Farming says fund traders are especially short in the corn market and slightly long in soybeans. December corn went off the board at nearly $4.60, and March is the new front month, which has been trading recently at the low end of its range at $4.70. There hasn’t been a lot of demand recently. On-again, off-again concerns over Brazil’s weather aren’t helping send the markets in a higher direction. Corn traders estimate a two-billion-bushel carryout, which should be more than enough supply. That’s kept any technical rallies in check. Soybean demand is improving, but traders remain more focused on Brazil’s weather, which looks to be improving early in 2024. While many forecasters have lowered Brazil’s harvest projections, they’re only down by 20 percent. The perception is that there will be enough soybeans to meet demand.
| Rural Advocate News | Friday December 29, 2023 |
Friday Watch List Markets There is a dearth of reports on Friday, with only the Chicago Business Barometer to be released. Traders will be watching South American weather closely, along with the delayed U.S. grain export sales to be released at 7:30 central time. Weather An area of scattered rain and snow showers in the Eastern Midwest will move into the Tennessee Valley Friday. High pressure will keep conditions mostly dry across the Plains and Western Midwest.
| Rural Advocate News | Thursday December 28, 2023 |
Ag Economists’ 2024 Expectations Geopolitical factors, elections, and many other surprises await the agricultural economy in 2024. Farm Journal and Purdue University’s December Economists’ Monthly Monitor shows views slightly more optimistic than they were a month ago. The economists talked about what unexpected news headlines they wouldn’t be surprised to see in 2024. The responses include China falling into a big recession. They wouldn’t be surprised to see a second farm bill extension, corn prices that test four dollars again, and inflation will support managed money returning to the commodities. Record beef imports wouldn’t be a surprise, as well as a national corn yield bigger than 190 bushels per acre. There are also reasons for optimism like demand opportunities through domestic soybean crushing, renewable fuel, and sustainable aviation fuel. They’re looking for robust domestic consumption and an opportunity for competitive pricing for U.S. commodities in overseas markets. Many producers should still have strong balance sheets. *********************************************************************************** Bayer Wins Roundup Lawsuit in California Bayer was victorious in a California trial initiated by a man who claimed he had developed cancer from long-term exposure to the company’s Roundup weed killer. Reuters says that ended what had been a five-trial losing streak for the company in trials over similar claims. Bayer said the verdict was handed down by a jury in a California Superior Court late last week. In a statement, the company says the verdict was “consistent with the evidence in this case that Roundup does not cause cancer and is not responsible for the plaintiff’s illness.” Lawyers for plaintiff Bruce Jones didn’t immediately respond to requests for comment. Like most plaintiffs in other Roundup lawsuits, Jones claimed the product caused him to develop a form of cancer called Non-Hodgkin Lymphoma. Around 165,000 claims have been made against the company for personal injuries allegedly caused by Roundup, which Bayer acquired by purchasing Monsanto in 2018. *********************************************************************************** New Year’s Ag Innovation Trends As agriculture looks to 2024, AgriThority, a Kansas City company, put together its top ten trends for the new year. The company is seeing some consistency from prior years but some emerging trends as well. The first is a push for more biologicals and biostimulants, comparing them to what seed treatments were in the 1990s. The biostimulant market should reach $6.8 billion by 2028. They say climate-smart farming will get smarter as measurements behind the carbon market continue maturing. AgriThority says precision ag will continue evolving with the onset of AI. They do note that regulations are not evolving at the same rate as innovation in agriculture. The company’s top ten also says sustainability isn’t going away, plus soil health will continue evolving. Artificial intelligence will likely be more present in agriculture next year. They call 2024 a “shakeout year” as companies will make moves for the future as competition increases. *********************************************************************************** Food Spending Hit Record High in 2022 Whether real or inflation-adjusted, yearly food spending in the United States increased steadily from 1997 to 2022, except in 2008 and 2009 during the Great Recession and COVID in 2020. Food spending includes food at home, described as food intended for off-premises consumption from retailers like grocery stores. Spending also includes food away from home, described as food bought at outlets like restaurants or cafeterias. Total food spending increased 70 percent from 1997 to 2022. Food spending totaled $1.81 trillion during 2020. Between 1997 and 2022, food at home spending increased at a slower rate, 53 percent, than food away from home at 89 percent. Total food spending increased on a yearly basis by 7.2 percent in 2021 and 4.5 percent in 2022. Food away from home spending drove the overall increases in food spending. Food at home spending rose four percent in 2021 before falling two percent in 2022. *********************************************************************************** Grain Inspections Rise USDA data shows inspections of corn and wheat for offshore delivery increased week-to-week while soybean assessments dropped during the week ending on December 21. Corn inspections during those seven days rose to 1.98 million metric tons. That’s up from the previous week of almost 960,000 tons and the 922,000 inspected during the same week in 2022. Wheat assessments reached 428,700 tons, a sharp jump up from 285,000 tons the previous week. Soybean inspections fell to 1.07 million tons from 1.43 million during the prior week. That’s also down from the 1.79 million tons inspected during the same week last year. Since the start of the marketing year, USDA has inspected 11.2 million metric tons of corn, well ahead of last year. Soybean assessments are now at 22.3 million tons, down from 27.3 million last year. Wheat inspections now stand at 9.33 million tons, down from 11.8 million during last year. *********************************************************************************** USDA Continues Strengthening U.S. Food Supply Chains USDA’s Ag Marketing Service announced a cooperative agreement with Oklahoma under the Resilient Food Systems Infrastructure Program. Through the agreement, USDA and Oklahoma are working to offer over $6.3 million in competitive grant funding for projects designed to build resilience across the middle of the supply chain. In May 2023, USDA announced the availability of up to $420 million through the RFSI program to strengthen local and regional food systems. “This partnership between USDA and Oklahoma is allowing critical funding to reach areas of the supply chain that need it most,” says Jenny Moffitt, USDA Undersecretary for Marketing and Regulatory Programs. Funded projects in Oklahoma will increase cold storage, expand distribution channels for food producers, and increase the number of co-packing options. “These projects will create new opportunities for the region’s small and midsize producers to thrive, expand access to nutritious food options, and increase supply chain resiliency,” Moffitt adds.
| Rural Advocate News | Thursday December 28, 2023 |
Thursday Watch List Markets Thursday morning's reports start with weekly U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CST, followed by pending U.S. homes sales at 9 a.m. The Energy Department's report on natural gas storage is set for 9:30 a.m., followed by the Energy Department's weekly inventory report at 10 a.m., including ethanol production. Weather Dry conditions will return across the Central and Southern Plains throughout the day while widespread rain and snow showers will build across the eastern Midwest and are expected to continue through Thursday night. Up to two inches of snow is likely across southern Wisconsin, eastern Iowa, Illinois, Missouri, and eastern Indiana; however, isolated higher amounts up to 3-4 inches are possible.
| Rural Advocate News | Wednesday December 27, 2023 |
Ag Groups Pleased with Rail Re-Opening The U.S. Customs and Border Protection has reopened the Eagle Pass and El Paso rail crossings into Mexico. Ag groups like the National Corn Growers Association were happy with the move but cautioned the agency against making similar decisions in the future. “This is certainly a welcome relief,” says NCGA President Harold Wolle. “We hope this serves as a cautionary tale against rail shutdowns in the future.” He also says rail is a key mode of transportation for U.S. ag exports into Mexico. U.S. Wheat Associates and the National Association of Wheat Growers were also relieved the shutdown ended. “These rail corridors are essential gateways to many loyal flour millers and food customers in Mexico who rely on the interconnected U.S. and Mexican rail system for a reliable source of high-quality U.S. wheat,” they said in a statement. “We trust CBP will take the steps needed to avoid future rail closures.” *********************************************************************************** U.S. Hog Inventory Slightly Higher As of December 1, there were 75 million hogs and pigs on U.S. farms, up slightly from December 2022 and down slightly from September 1, 2023. That’s according to the Quarterly Hogs and Pigs Report from the National Agricultural Statistics Service. Of those 75 million hogs and pigs, 69 million were market hogs while six million were kept for breeding. Between September and November 2023, 34.6 million pigs were weaned on U.S. farms. From September through November 2023, U.S. hog and pig producers weaned an average of 11.66 pigs per litter. Hog producers intend to have 2.9 million sows farrow between December 2023 and February 2024, and 2.91 million sows farrow between March and May 2024. Iowa hog producers accounted for the largest inventory among the states with 24.9 million head. Minnesota had the second-largest inventory at 9.1 million head. North Carolina was third with a total of 7.8 million head. *********************************************************************************** USDA Ranks the World’s Largest Meat Customers China has been the world’s largest meat importer since 2019. Despite recent reductions in imported meat volumes, the country remains in the top spot. In 2022, China imported 43 percent more than Japan, the second-largest meat importer in the world. Mexico was third, followed by South Korea in fourth place. Issues such as disease, tougher laws addressing environmental issues, and an exodus of small-scale farmers have constrained China’s meat supply, boosting domestic prices and incentives to import. As China’s most consumed meat, pork tends to dominate Chinese meat supply and demand. China surpassed Japan to become the top meat importer after the African Swine Fever virus sharply reduced the country’s pork supply in 2019. China’s meat consumption appeared to peak in 2014, but statistical model projections say that meat consumption will continue to grow through 2031 based on trends like dietary change and moderate growth in Chinese income and prices. *********************************************************************************** USDA Accepting Applications for Climate Fellows The U.S. Department of Agriculture announced it is hiring 40 Climate Change Fellows to help with the record number of applications seeking funding for clean energy projects. Farmers, ranchers, and rural small businesses are looking for the funds under the Rural Energy for America Program (REAP). These positions are part of the USDA Climate Change Fellows Program, which hires new staff with a range of skills to carry out USDA’s activities to address climate change and find solutions to agricultural challenges, enhance economic growth, and create new income streams for farmers, ranchers, and producers. The program brings expertise and fresh perspectives to the federal workforce and expands the climate consciousness of state offices across the country. The agency says the investments in future agricultural leaders will help USDA attract the best and brightest to face the growing challenges to the agricultural economy. For more information or to apply, go to usda.gov. *********************************************************************************** Italy Bans Sale of Lab-Grown Meat Italy is the first country to ban cultivated meat, the kind grown in laboratory bioreactors from stem cells. Under a new law put into effect last month, lab-grown meat cannot be produced or marketed in Italy. The country’s agricultural minister says Italy was proud to impose a ban like this one. Which country might be second on the list isn’t set in stone. Many other countries are allowing and even encouraging the technology to be developed. Singapore is the only country where its people are currently eating cell-based meat. The U.S. Department of Agriculture and the Food and Drug Administration have approved two kinds of cell-based chicken for human consumption. For regulators in most countries, the BBC says the top issue is food safety. Italy's ban grows out of concerns that may be of more interest to America’s farmers. The country is unashamedly trying to protect its food traditions and farmers. *********************************************************************************** Nebraska Governor Condemns UN Food Strategy Nebraska Governor Jim Pillen commended Nebraska Representative Mike Flood for introducing a resolution condemning the UN Food Strategy that was released at COP28. He says the strategy is bad for Nebraska and other agricultural states. “The UN’s radical attack on agriculture undermines the livelihoods of Nebraska farmers and ranchers as well as those in other states where agriculture is an economic driver,” Pillen says. “Anti-agriculture activism damages the world’s food system, and it hurts the hungry.” He also says farmers in and out of Nebraska raise their products using sustainable methods designed to protect the land and resources on which they rely. The COP28 report called for countries to revamp their farm subsidies to encourage healthier eating, prevent overgrazing of livestock, and eliminate food waste. The report also backed sugar taxes, which would apply to high-fructose corn syrup. It also calls for the promotion of plant-based alternatives to red meat.
| Rural Advocate News | Wednesday December 27, 2023 |
Wednesday Watch List Markets Traders will continue to look for clues regarding the status of Brazil's soybean production, but trading is apt to be subdued this week, ahead of Monday's New Year holiday. There are no significant reports on Wednesday's docket and the Energy Department's weekly inventory report will be out at 10 a.m. CST Thursday. Weather A weakening low pressure system in the Central U.S. will continue to provide isolated to scattered rain and snow showers for the Northern and Central Plains as well as the Upper Midwest and Mid-Mississippi Valley Wednesday. Well-above normal temperatures will also persist in northern parts of the Midwest, with temperatures reaching up to 12-18 degrees Fahrenheit above normal.
| Rural Advocate News | Tuesday December 26, 2023 |
Top 5 Things to Watch - Holiday Schedule Mixes Up Markets 1. Holiday market hours: Grain and livestock futures close normally on Dec. 22 and CFTC data is out that day as normal. There also are cattle on-feed, cold storage and hog inventory reports due at 2 p.m. on Dec. 22. Grain and livestock futures markets are closed Christmas Day. They open at 8:30 a.m. Dec. 26. The markets repeat that schedule for the New Year's holiday, open normally on Dec. 29, closed on New Year's Day and trading opens at 8:30 a.m. Jan. 2. In Canadian markets, there is no canola trade at the ICE on Dec. 26, Boxing Day. 2. Weather brings Christmas surprise: And the surprise is? Like any true present, it'll be unknown until the package is open, or in this case until the sun comes up. Weather models continue to be all over the board, some predicting snow and cold, some balmy sunshine. 3. Top 2023 ag stories: We'll continue our countdown of the 10 most critical stories in agriculture. As such things tend to be, many of them are still an issue as the year comes to a close. 4. Tax law updates: There are some new tweaks on depreciation and other tax-related rules for the 2024 season. Watch for our latest take on that. 5. Economic reports to watch: Monday markets are closed, so no USDA export inspections. Tuesday sees the U.S. consumer confidence report for December due out at 9 a.m., followed by USDA's weekly report of export inspections at 10 a.m. Then Thursday sees U.S. weekly jobless claims and U.S. Drought Monitor update at 7:30 a.m., followed by pending U.S. homes sales at 9 a.m. The Energy Department's report on natural gas storage is set for 9:30 a.m., followed by the Energy Department's weekly inventory report at 10 a.m. On Friday, the USDA weekly export sales report is out at 7:30 a.m.; that's the only significant report of the final trading day of 2023.
| Rural Advocate News | Tuesday December 26, 2023 |
Tuesday Watch List Markets Back from the three-day Christmas weekend, traders will catch up on South American weather and any other pertinent news before trading in grains and livestock futures resume at 8:30 a.m. CST Tuesday. A report on U.S. consumer confidence in December will be out at 9 a.m., followed by USDA's weekly report of export inspections at 10 a.m. Canola futures on the ICE exchange are closed for Boxing Day. Weather A strong low pressure system in the central U.S. will continue to provide blizzard conditions across portions of the Northern and Central Plains today with freezing rain likely across the eastern Dakotas. Periods of rain will also continue across the Upper Midwest.
| Rural Advocate News | Friday December 22, 2023 |
Ag Groups Respond to Rail Suspension at U.S.-Mexico Border The U.S. Customs and Border Protection Agency was forced to suspend rail operations at key points into and out of Mexico. The move is to help alleviate the sharp increase in illegal immigration at the border. These actions affect U.S. corn and barley shipments, two commodities the U.S. Grains Council represents. The CBP is working with the Mexican government to remedy the situation as quickly as possible, but there’s no timeline for returning to normal operations. “The North American trading system relies on interconnectedness, and any disruption affects Mexican and U.S. Commodities,” says USGC Chair Ryan LeGrand. “It’s vital the situation gets resolved in a timely manner.” A letter from the NCGA says, “We are aware of trains sitting at origin in at least six states that are unable to move, and we expect that number to grow. Mexican customers are telling U.S. shippers that they’ll soon consider other suppliers.” *********************************************************************************** CattleCon24 Showcases Sustainability Efforts Caring for animals, conserving natural resources, and maintaining a viable business are critical components of transitioning cattle operations to future generations. Two unique sessions during CattleCon24 in Orlando, Florida, provide opportunities to share ideas and continue conversations about the importance of continuous improvement. A half-day Grazing Management Workshop is scheduled for Tuesday, January 30. A long list of experts will talk about the benefits of pasture and grazing management, assessing pasture conditions, forage growth, and many other topics. “Proper grazing management and a written grazing management plan are essential to the success, longevity, and profitability of forage-based cattle operations,” says Josh White of NCBA. Dr. Myles Allen, a professor at Oxford University, will be the keynote speaker during the Sustainability Forum on Thursday, February 1. Allen will demystify climate impacts from cattle production and equip producers with the knowledge and resources to effectively speak about cattle’s role in the climate conversation. *********************************************************************************** Eleven Percent of Americans are Food Insecure Food-insecure households have difficulty providing enough food for their members because they lack resources. USDA’s Economic Research Service monitors the extent of food insecurity in U.S. households at the national and state levels through an annual U.S. Census Bureau Survey. State-level estimates are obtained by averaging three years of data to generate a larger sample size in each state. This provides more precise estimates and more ability to detect differences across states. The national three-year average (2020-2022) was 11.2 percent of American households classified as food insecure. Of that 11.2 percent, findings ranged from 6.2 percent in New Hampshire to 16.6 percent in Alaska. Food insecurity was statistically significantly higher than the national average in six states, including Arkansas, Louisiana, Mississippi, Oklahoma, South Carolina, and Texas. The prevalence of food insecurity was statistically significantly lower in 17 states, including California, Colorado, Iowa, Minnesota, North and South Dakota, Wisconsin, and many others. *********************************************************************************** First Disability-Accessible Tractor Produced in Brazil CNH Industrial launched the world’s first tractor that’s accessible for people with lower limb disabilities. The New Holland TL5 was produced in Brazil and developed in partnership with several inclusive mobility companies. CNH also enlisted farmer and customer Fernando Dalmolin, who uses a wheelchair following an incident that left him without the use of his legs, to help with developing the tractor under the New Holland brand. “This is what people with disabilities like mine need to work independently out in the field,” Dalmolin said in a statement. The tractor has a unique lifting platform and joystick controls allow users to enter and exit the tractor without help. Once they’re inside the tractor, users can operate the tractor with adapted functionality. In the U.S., at least 634,000 farmers and ranchers have a disability, with many reporting physical limitations. Brazil estimates that 7.8 million of its people have lower limb disabilities. *********************************************************************************** USDA’s 2024 Ag Outlook Forum Packed with Information The USDA’s 100th annual Ag Outlook Forum is on February 15-16 in Arlington, Virginia. The event’s theme is “Cultivating the Future,” and features a lot of information farmers and agricultural stakeholders will find useful. USDA’s opening program at the event includes a chance to get valuable insights as USDA’s Chief Economist unveils the agency’s outlook for the domestic agricultural economy in the new year. Ag Secretary Tom Vilsack will highlight the history and evolution of agriculture in the U.S. while painting a vision for the future. It’s a chance to find out more about initiatives aimed at preserving farmland, protecting farmers, and creating new revenue streams for small and mid-sized producers. State leaders will share their perspectives on the future of agriculture and the challenges faced by producers. It’s also a chance to discover emerging technologies that are reshaping farming and creating exciting new opportunities today and in the future. *********************************************************************************** NCGA Applauds Nutrient Runoff Reduction The National Corn Growers Association applauds the sustained reductions in nutrient losses reaching the Gulf of Mexico. The reductions are shrinking the average size of the hypoxia zone, as recently documented in a task force report to Congress. NCGA commends all growers for the practical conservation steps and measures they have voluntarily adopted on their farms to reduce nutrient losses and protect water quality. “In the journey of water quality stewardship, we are encouraged by the strides made by growers,” says Bryan Biegler, NCGA Stewardship Action Team Chair. “The commitment to sustainable practices is clear, and despite challenging weather patterns impacting growers, we see definite progress taking form over the course of a five-year rolling average.” According to the report, the 2025 interim target to reduce nitrogen loads by 20 percent has been met. More work is needed to reduce nitrogen and phosphorous by 28 percent to meet the 2035 goal.
| Rural Advocate News | Friday December 22, 2023 |
Friday Watch List Markets Twas the last trading day before Christmas and all through the house… Friday's trading hours will be normal for grain and livestock futures, but we can't promise traders won't stir up mischief on what is traditionally a light-volume session. November reports of U.S. durable goods orders, U.S. personal income, consumer spending and the personal consumption expenditures index will all be released at 7:30 a.m. CST, followed by November U.S. new home sales at 9 a.m. At 2 p.m. USDA will post the December 1 cattle on-feed, monthly cold storage and quarterly hogs and pigs reports. Weather A disturbance is moving out of the Plains and into the Midwest on Friday, bringing scattered rain showers. Two disturbances are moving into the West and will combine to create a big storm in the days surrounding Christmas. But temperatures will be quite warm, and records are likely to be broken in the Upper Midwest ahead of this storm.
| Rural Advocate News | Thursday December 21, 2023 |
Movement on Unrestricted E15 Sales The National Corn Growers Association praised an EPA decision that advances the request of several governors to allow their states to sell E15 year-round to the Office of Management and Budget. The move now puts eight Midwestern states closer to year-round access to fuel with a 15 percent ethanol blend. “Allowing consumers to access higher blends of ethanol year-round will play a critical role in helping the country meet its ambitious climate goals,” says NCGA President Harold Wolle. Growth Energy CEO Emily Skor says it’s a welcome step forward for farmers and drivers across the Midwest. “We’re grateful to the governors of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin for pushing for uninterrupted access to E15,” she says. The request has been in limbo after the oil industry warned the administration that allowing E15 sales in select states would cause supply chain issues and higher gasoline prices. *********************************************************************************** Justice Department, FTC approve 2023 Merger Guidelines Agribusiness mergers have been a concern for agriculture because they cut down on competition and lead to higher prices for things like inputs. The Justice Department and the Federal Trade Commission issued the 2023 Merger Guidelines describing the factors and frameworks the agencies utilize when reviewing mergers and acquisitions. The new guidelines were released after a two-year process of public engagement and reflect modern market realities and the experience of participants in the marketplace. “These finalized guidelines provide transparency into how the Justice Department is protecting the American people from ways in which unlawful, anticompetitive practices manifest themselves in the modern economy,” says Attorney General Merrick Garland. The department also says that competitive markets and economic opportunity for all Americans go hand in hand. Garland was grateful to hear from authors, nurses, farmers, and other concerned citizens from across the country. “Merger enforcement will be better as a result,” he said. *********************************************************************************** Growers Appreciate Chlorpyrifos Restoration The Environmental Protection Agency announced it will restore the uses of chlorpyrifos and commit to a science-based review of the pesticide. Alan Meadows, an American Soybean Association director, was happy to hear the news. “We appreciate this announcement brought about by an Eighth Circuit Appeals Court decision,” he says. “EPA’s own science has repeatedly found there are at least 11 high-benefit, safe uses of chlorpyrifos, including for soybeans, a fact we will continue to remind the agency of throughout the process.” The announcement is consistent with a November decision from the Eighth Circuit Court that found EPA disregarded its own scientists’ findings by ending numerous uses of chlorpyrifos they determined were safe. American Sugarbeet Growers Association President Nate Hultgren says growers welcome the return of chlorpyrifos for the upcoming season. “Growers need tools like this to reduce economic harm stemming from pests and diseases and are committed to responsible stewardship,” Hultgren says. *********************************************************************************** MOU on Establishing Climate Corps Work is being done on the steps to advance the American Climate Corps, a landmark initiative announced by the President earlier this year. The initiative will train the next generation of clean energy, conservation, and climate resilience workers while putting them on a path to good-paying union jobs. As part of that commitment, seven federal agencies entered into a Memorandum of Understanding that will serve as a blueprint for the multi-agency program. The MOU lays out the mission, goals, priorities, and the next steps in implementing the American Climate Corps. Beginning in January, senior administration officials will also convene a series of virtual listening sessions to hear directly from prospective American Climate Corps applicants and implementing partners. Those partners can include labor unions, educational institutions, employer partners, and state, local, and tribal governments. Within the first three weeks of launching the Corps, over 40,000 people expressed an interest in joining it. *********************************************************************************** “Raised With Respect” Cattle Care Campaign Underway Respect for animals, land, and for each other is the foundation of a new campaign launched by Sysco, a food service distribution company, and Certified Angus Beef. The campaign called “Raised with Respect” centers on common ground found between cattle producers and beef consumers and focuses on animal welfare and beef sustainability. It was developed as part of a strategic cattle care partnership between Sysco and CAB. The collaboration will focus on supporting producers, equipping them with continuing education to stay current on best management practices, and helping to increase consumer confidence in U.S. beef production. Sysco and CAB are providing Beef Quality Assurance training and certification to farmers and ranchers in nine key beef-producing states. “BQA is a credible and effective way for producers to communicate animal welfare to people on the opposite end of the beef supply chain,” says Bruce Cobb, CAB executive vice president of production. *********************************************************************************** Wolves Reintroduced in Colorado Over Ranching Objections Hundreds of ranchers in Colorado are worried about several wolves that were airlifted into the state and released this week. Wolves were eradicated from Colorado in the 1940s. After three years and dozens of public hearing disagreements, the first handful of wolves were moved from Oregon into Colorado. “Just watching an animal leave the crate and run up the hillside is a majestic site,” says Eric Odell, Colorado Parks and Wildlife Species Conservation Manager. Many ranchers spent a lot of time in the Colorado statehouse fighting the wolf releases and in a federal courtroom last week. Several ranchers who spoke with public broadcasting in the state have gone shopping for the biggest guard dogs they can find. It’s not just farmers and ranchers objecting to the release, either. Tourism directors in several towns are worried and point out it’s another predator to watch out for with children and small animals.
| Rural Advocate News | Thursday December 21, 2023 |
Thursday Watch List Markets At 7:30 CST, Initial Jobless Claims will be released along with the third quarter GDP revision at the same time. Traders will be closely watching Brazilian weather for any changes, for U.S. export sales to be released at 7:30 CST, and any new sales reported by the USDA. Weather A cutoff low-pressure center continues to spin off the coast of California but has pushed a small disturbance into the Plains for Thursday, bringing some showers mostly from Kansas to Texas. Warmth continues to be the big story for the middle of the country until the storm in the Southwest moves eastward this weekend.
| Rural Advocate News | Tuesday December 19, 2023 |
ARC and PLC 2024 Enrollment is Open The USDA says agricultural producers can now enroll in the Farm Service Agency’s Agriculture Risk Coverage and Price Loss Coverage programs for the 2024 crop year. Producers can enroll and make election changes for the 2024 crop year beginning on December 18, and the deadline to complete enrollment and any election changes is March 15, 2024. The current farm bill was extended through September 30, 2024, allowing authorized programs like ARC and PLC to continue operating. “It’s business as usual for ARC and PLC implementation for the 2024 crop year,” says Zach Ducheneaux, Farm Service Agency Administrator. “These programs provide critical financial protections against commodity market volatilities for many American farmers so don’t delay enrollment.” He also advises producers to avoid the rush and contact their local FSA Office for an appointment because even with no changes in program elections for next year, farmers still need to sign a contract to enroll. *********************************************************************************** Lawmakers Want More Time on New Rule The Congressional and Senate Chicken Caucuses sent letters to the USDA asking for a 180-day extension to the implementation period for the new Packers and Stockyards Act rule. The rule, titled “Transparency in Poultry Contracting and Tournaments,” included a 75-day compliance period when it was published in the Federal Register on November 28. That put the compliance date for broiler and processing companies on February 12, 2024. “The rule establishes numerous additional disclosure requirements, what provisions must be in contracts, introduces open-ended and novel definitions and terms, requires completely new oversight systems, and injects significant ambiguity regarding compliance,” the House letter says. The lawmakers requested USDA extend the implementation date by no less than 180 days to allow stakeholders and constituents time to thoroughly understand and comply with the rule’s many requirements. They say by providing only 75 days to implement the rule, USDA significantly underestimated the time required for implementation. *********************************************************************************** USDA Launches Risk Management Workshops USDA announced it will host more than a dozen in-person and virtual workshops this winter for producers to learn more about new and expanded livestock risk management products. The “Livestock Roadshow” will be hosted by the Risk Management Agency. It will highlight policy improvements based on feedback from America’s livestock producers as part of the agency’s broader outreach and education efforts. “Listening to farmers and ranchers is a top priority for RMA,” says administrator Marcia Bunger. “The Livestock Roadshow is one of our many efforts to provide outreach and education to America’s agricultural producers.” The roadshow will cover many topics, including annual forage, dairy revenue protection, livestock gross margin, livestock risk protection, and many others. To ensure producers across the country can attend an event, two virtual livestock shows are scheduled for January. Livestock producers can learn more by going to usda.gov or contacting a Risk Management Agency Regional Office. *********************************************************************************** Tighter Margins Ahead in 2024 Despite a drop in key operating costs, Rabobank says contracted margins in 2023 will continue into the new year. Soybean farmers are likely to achieve good margins in the 2024 season, but corn farmers will feel their margins pressured by ample supply. Wheat margins are unlikely to see better margins despite declining costs. Trends are indicating that the markets are at a pivotal point. Rabobank says uncertainty rises from factors like record Brazilian crops, more “adequate” crops in the U.S. and Europe, and expectations of another record crop in Brazil in 2024. Global domestic demand for key crops declined, which points to building stocks and lower prices. Weather challenges and geopolitical instability coupled with economic uncertainty prompt consideration of a risk premium in the market. Rabobank says corn exhibits the least upside potential, with wheat presenting the highest upside potential. Soybeans likely fall somewhere in between. Volatility is likely in 2024. *********************************************************************************** Midwest Crops Conference in January The annual Midwest Crops Conference is scheduled for January 2024 in St. Joseph, Missouri. Formerly the “Certified Crops Advisor Conference,” the two-day event targets people looking for Continuing Education Units, including crop advisors, ag industry professionals, and farmers. “This workshop will provide in-depth discussion on several topics to help agricultural professionals enhance their crop production recommendations to farmers,” says Denice Ferguson, a member of the conference committee. Researchers and experts in crop production from the University of Missouri, University of Nebraska, Kansas State University, and Iowa State University will present up-to-date information from their areas of expertise. “Anyone advising or managing an agricultural operation or serving the ag industry knows that research and technology is driving this sector,” Ferguson says. “Advancements in agronomy, pest management, and crop technologies bring improvements to farmers’ yields, efficiency, and risk management.” The conference will offer 15.5 hours of Continuing Education Units for Certified Crop ‘Advisors. *********************************************************************************** New Members Lead AFB National Committees Farm Bureau farmer and rancher members play an important role in their communities and the organization by serving at the local, state, and national levels. Several newly appointed volunteers will provide leadership beginning in 2024 as members of the AFB’s Young Farmers and Ranchers and Promotion and Education Committees. These newly appointed national committee members will focus on advancing the mission of the American Farm Bureau and working to build trust with consumers and others while sharing agriculture’s story,” says American Farm Bureau President Zippy Duvall. “Farm Bureau members bring a big level of commitment and care to their communities, and as engaged grassroots leaders, they’ll have a big impact.” The YF and R Committee plans programming that includes coordinating the Young Farmer and Rancher competitive events at the national convention in January. The Promotion and Education Committee develops resources to inspire and equip the Farm Bureau to convey agriculture’s importance.
| Rural Advocate News | Tuesday December 19, 2023 |
Tuesday Watch List Markets Trading may be quiet on the Tuesday before Christmas as the only significant report on the docket is November U.S. housing starts, set for 7:30 a.m. CST. Traders will keep close watch on the weather forecasts for Brazil. Weather With lake-effect showers moving into the Northeast and a trough situated off the West Coast, it will be quieter across most of the country for Tuesday. A brief burst of cooler air will be replaced by warmth from the west while showers will continue along the West Coast.
| Rural Advocate News | Monday December 18, 2023 |
Good News for the Sustainable Aviation Fuel Industry The U.S. Treasury Department will use a modified version of the GREET model as a measurement to determine reductions in greenhouse gas emissions. The agency will use the model as it allocates tax credits for sustainable aviation fuels under the Inflation Reduction Act. The National Corn Growers Association was pleased to hear the Treasury’s decision. “Given that GREET was created by the government and is widely respected for its ability to measure reductions in greenhouse gas emissions from the farm to the plane, we’re encouraged by this,” says NCGA President Harold Wolle. “We’re eager to help the aviation industry reduce its carbon footprint and look forward to helping ensure the final model helps achieve that goal.” GREET, which stands for the Greenhouse Gasses, Regulated Emissions, and Energy Use in Transportation, was developed by the U.S. Department of Energy to measure greenhouse emissions from the field to the car or plane. *********************************************************************************** Specialty Crop Growers Reminded to Apply for Assistance The USDA reminds specialty crop growers that assistance is available for producers who incur eligible on-farm food safety program expenses. The expenses are part of the process for obtaining or renewing a food safety certification through the Food Safety Certification for Specialty Crops program. “The program is one of the many ways USDA helps support local and regional food systems and opportunities for small-scale producers,” says Farm Service Agency Administrator Zach Ducheneaux. “I’m encouraging all specialty crop growers to discover how this program can help mitigate the costs of on-farm food safety certification, meet regulatory requirements, and apply by the January deadline.” Eligible operations must grow specialty crops, meet the definition of a small business, and have paid eligible expenses related to the 2023 certification. The application for 2023 closes January 31, 2024, and FSA will issue payments after the application period closes. For more information, growers should visit farmers.gov. *********************************************************************************** CoBank Releases 2024 Year Ahead Report Lingering high prices are expected to take a bigger toll on the economy in 2024. CoBank says the biggest problem for farm margins heading into 2024 is the elevated cost of production. While fertilizer prices have fallen, other production costs remain high. However, ag commodities will benefit from more upside price risk than down in 2024. Global grain and oilseed stock inventories are tight by historic measures, and the northern hemisphere will likely have a strong El Niño weather pattern during the growing season for the first time since 2015. The dollar will likely continue its recent decline, and global demand should return to a long-term growth trend. Also, the renewable diesel boom and the smaller U.S. soybean harvest of 2023 will drive an expansion of soybean acreage next year. Profitability for the livestock sector should modestly improve in 2024 as lower feed costs and domestic demand offset weak global exports. *********************************************************************************** State Ag Officials Oppose Beef Imports from Paraguay Ag officials in several of America’s top beef-producing states say federal officials didn’t properly assess the risk of disease when deciding to allow beef imports from Paraguay to resume. USDA recently ended a 25-year prohibition on those imports. The prohibition was the result of Paraguay’s difficulty in ridding itself of foot and mouth disease. A severe outbreak in the U.S. has the potential to cost more than $200 billion. South Dakota Searchlight says beef industry groups and some lawmakers have opposed the move, saying the risk analysis was based on outdated information. Mike Naig, Iowa Secretary of Agriculture, and officials from seven other states wrote a letter to Ag Secretary Tom Vilsack to consider pausing the decision until a more reliable risk assessment can be completed based on modern visits to Paraguay. Ag officials from Missouri, Nebraska, Ohio, Oklahoma, South Dakota, Texas, and Wyoming all signed the letter to Vilsack. *********************************************************************************** FCA Board Receives Quarterly Report on Ag Economic Conditions The Farm Credit Administration received a quarterly report on economic issues affecting agriculture and an update on the financial condition and performance of the Farm Credit System. Rising interest rates have negatively impacted many of the finance-heavy sectors, including commercial real estate, banking, and farming. While many agricultural inputs are considerably less costly than last year, profit margins for many farmers are tighter this year. Crop producers continue to see lower commodity prices, especially for corn and wheat, compared to a year ago. Further price risk stems from lower water levels in key waterways used to transport cash grains. Profit margins for some livestock and specialty crop producers are tighter due to weak commodity prices. The System reported solid financial results through the first nine months of 2023. System growth has slowed in 2023 against a backdrop of higher interest rates and tighter margins in a number of agricultural sectors. *********************************************************************************** December 2023 Livestock Outlook The USDA’s December Livestock Outlook says higher cow slaughter and heavier-than-assumed carcass weights will offset lower fed cattle slaughter in the fourth quarter of 2023. That will leave the beef production forecast for 2023 unchanged. Expected heavier carcasses will carry over into early 2024 along with higher cow slaughter. Fourth-quarter pork production was raised 25 million pounds to 7.09 billion pounds, 2.4 percent higher than during the same period last year. Hog prices are expected to average $54 per hundredweight for the quarter, 15 percent lower than the fourth quarter of 2022. First-quarter hog prices are lowered by $1 per hundredweight to $56 as soft consumer pork demand is likely to persist, limiting hog price increases. Lamb and mutton import forecasts are lower in the December report compared to the previous month. In poultry, projected broiler production is adjusted higher for the fourth quarter of 2023 based on strong production in October.
| Rural Advocate News | Monday December 18, 2023 |
Top 5 Things to Watch - Cattle Markets and South American Weather 1. Cattle prices and LRP: The conversation around what's going on in cattle markets continues and our analysts and journalists continue to follow the trail this week, with reports from cattle meetings and conversations with producers, traders and the insurance industry. 2. Big stories in 2023: We'll kick off our annual review of the 10 most influential ag stories in 2023 this week. We'll look at weather events, financial surprises and at the things that didn't happen, but should have. Look for our Top 10 story lines through the end of the year, leading up to the story we think was the most critical. 3. More from yield contests: The big news last week was Virginia farmer David Hula's record-breaking corn yield of 623.8439 bushels per acre. We'll have more tales from this year's yield contests both on the DTN platforms, and in the February issue of Progressive Farmer. I 4. Eyes remain on South America: While corn farmers got an early Christmas present with the guidance decision affecting sustainable aviation fuel (SAF) tax credits, which could be a pivotal moment for the ethanol industry, the markets are still watching crop growth in South America. Weather models continue to show favorable conditions through January for much of Brazil and Argentina. 5. Economic reports to watch: On Monday, USDA's weekly grain export inspections report hits at 10 a.m., just after the latest government home builder confidence index at 8 a.m. Then Tuesday kicks off with the 7:30 a.m. release of housing starts and building permits. Wednesday, the latest EIA petroleum report hits 10 a.m., which includes ethanol production and inventory. The Energy Department's weekly inventory report is at 9:30 a.m. Existing home sales is scheduled to be released at 9 a.m. On Thursday, we see the USDA weekly export sales report at 7:30 a.m., the same time as weekly initial U.S. jobless claims. The third-quarter GDP report is released at 7:30 a.m., with latest leading economic indicators at 9 a.m. Finally, Friday is a busy report day, with durables-goods orders for November followed by personal income and spending data for November, all released at 7:30 a.m. New home sales will be released at 9 a.m. The latest Cattle-on-Feed and a Hogs and Pigs report are released after market close.
| Rural Advocate News | Monday December 18, 2023 |
Monday Watch List Markets Back from the weekend, traders will continue to keep watch over South American weather with rain expected to return to central Brazil this week. USDA's weekly report of grain export inspections is set for 10 a.m. The bulk of this week's reports will fall on Thursday and Friday, ahead of the Christmas holiday. Weather A strong storm system built up across the East Coast over the weekend and is pushing through the Northeast on Monday. Behind it, a quick burst of cooler air is moving through the Midwest and down into the Southeast, where it will be cooler for a few days starting Tuesday. The cooler air will mean lake-effect snow around the Great Lakes for today. Another cutoff low-pressure center will bring showers to the West Coast as well.
| Rural Advocate News | Friday December 15, 2023 |
Whole Milk on School Menus Gets Through House The National Milk Producers Federation applauded the House of Representatives for passing the Whole Milk for Healthy Kids Act. The act expands the variety of healthy milk options schools can choose to serve. “Expanding the milk schools can choose to serve to include Two Percent and Whole Milk is a commonsense solution that will help ensure kids have access to the same healthy options they get at home,” says NMPF President and CEO Jim Mulhern. The American Farm Bureau was also happy with the news. In a letter to Congress, AFBF told members that nine out of 10 children aren’t consuming enough dairy to meet their nutritional needs. The act will allow kids to get access to protein, calcium, and vitamins at important times in their development. House Ag Chair GT Thompson introduced the bill and said he looks forward to restoring access to these nutritious beverages in schools across the country. *********************************************************************************** Iowa Land Value Study Shows a Four Percent Rise in Prices Farmland values in Iowa rose again but at a slower pace than the two previous years. The annual Iowa State University Land Value Survey found that farmland values increased 3.7 percent, or $424, to $11,835 per acre. That increase follows a larger 17 percent increase in 2022 and a near-record 29 percent in 2021. The study showed several factors behind the surge last year contributed to the rising prices in 2023. The Federal Reserve has used interest rate hikes to help curb inflation rates, and future increases will continue to slow the growth in farmland values, but not immediately. The Iowa State study says it will take a couple of years for interest rates to be reflected in farmland values. The impact of the aggressive rate hikes in 2022 is expected to be felt more strongly in 2024 and beyond. That will mean more modest growth or lower land prices ahead. *********************************************************************************** Purdue Consumer Survey Deals with Food Concerns The Purdue University Consumer Food Insights is a monthly survey conducted by the Center for Food Demand Analysis and Sustainability. The information is used to track trends and changes in consumer food demand and food sustainability behaviors. The November survey dealt with several food safety topics. Among the many findings, most consumers associate “Best if Used By” and “Use-By” food date labels with food safety rather than food quality. The perceived risk of foodborne illnesses is higher in restaurants than in food prepared at home. Consumers are also more likely to believe raw meats pose a higher risk of containing foodborne bacteria than other food times. Risk-averse consumers ate more food cooked at home than risk-loving consumers. Risk-loving consumers reported eating unwashed produce, rare or undercooked meats, and raw dough or batter more frequently than risk-averse or risk-neutral consumers. Food insecurity dropped slightly for the fifth straight month to 12.8 percent. *********************************************************************************** Groups File Action Against Glyphosate New legal action would require the Environmental Protection Agency to immediately suspend and cancel glyphosate, the main ingredient in Monsanto’s Roundup. A petition filed by the Center for Food Safety, Beyond Pesticides, and four farmworker advocacy groups says glyphosate’s registration is illegal. A lawsuit filed by the same groups last year saw a federal appeals court strike down EPA’s human health assessment because the agency wrongfully calculated glyphosate’s cancer risk. The new petition calls for the cancellation and suspension of glyphosate’s registration, contains more than 70 pages and includes more than 200 scientific citations. Glyphosate is the most widely used pesticide in the world, with about 300 million pounds applied every year in the U.S. The groups say EPA has declined to act despite studies, including those sponsored by Monsanto, that show glyphosate has harmful effects on the liver, kidney, and reproductive system. They also say it’s a probable immune system carcinogen. *********************************************************************************** USDA Opens Applications for Discrimination Assistance Farmers, ranchers, and forest landowners who experienced discrimination in USDA farm lending programs before January 2021 may be eligible for Discrimination Financial Assistance. It’s a new program and an important step in delivering on USDA’s commitment to providing financial assistance to those who have faced discrimination in USDA farm lending programs. The deadline to apply is January 13, 2024. Borrowers can apply online or with a paper form. The application process isn’t first come, first served. All applications received or postmarked before the January 13 deadline will be considered. Filing an application is free and doesn’t require a lawyer. On the website, applicants can get information on how to obtain technical assistance in person or virtually and additional resources and details about the program. If you have concerns about working with USDA based on past experiences, USDA partnered with community-based organizations to conduct outreach to underserved groups. For information, go to 22007apply.gov. *********************************************************************************** GHG Mitigation Strategies for the Sheep Industry A new resource outlining best practices for the U.S. Sheep industry to reduce greenhouse gas emissions is now available. The resource summarizes findings in an Environmental Footprint Study from Michigan State University. Many of the practices align with the Lamb Crop Best Practices developed to improve on-farm productivity and profitability. Reducing lamb loss, breeding ewes earlier, and optimal nutrition practices are all areas where producers can maximize productivity while reducing GHG emissions. “It’s encouraging that producers can implement sound practices that have been proven to help with productivity while reducing our environmental footprint,” says American Lamb Board Chair Peter Camino. “Sheep producers have long stewarded their lands, but seeing strategies that make sense for both productivity and sustainability is encouraging.” Other strategies include proper fertilizer use, improved manure management, using renewable resources, and adopting new grazing opportunities. The full report or the summary of the findings can be downloaded at lamboard.com.
| Rural Advocate News | Friday December 15, 2023 |
Friday Watch List Markets On Friday, the Federal Reserve releases its report on U.S industrial production at 8:15 a.m. CST. The National Oilseeds Processors Association releases its estimate of members' soybean crush in November at 11 a.m. and grain traders continue to keep watch over South American weather forecasts. Weather A storm system in the Plains will move east through the middle of the country on Friday with areas of showers. Much of this will be rain, though some snow will be possible across the north from North Dakota through northern Wisconsin. Even with the system moving through, temperatures continue to be warm by December standards.
| Rural Advocate News | Thursday December 14, 2023 |
Attempt to Overturn Beef Imports from Paraguay Senators Jon Tester (D-MT) and Mike Rounds (R-SD) will file a Congressional Review Act resolution that would overturn the decision to lift a long-standing ban on beef imports from Paraguay. Both senators say the Biden administration made the wrong decision. “Resuming beef imports from a country with a recent history of foot and mouth disease is bad news for consumers and producers,” Tester says. Rounds says U.S. farmers produce the world’s safest, highest quality, and most affordable beef. USDA’s decision to resume imports relies on an analysis completed in 2018, and American inspectors haven’t been in the country since 2014. In addition to suspending beef imports from Paraguay, the bipartisan bill would also require establishing a working group to evaluate the threat to food safety and animal health posed by Paraguayan beef. The bipartisan legislation is supported by R-CALF USA, the United States Cattlemen’s Association, and the National Cattlemen’s Beef Association. *********************************************************************************** Ag Groups Concerned About PNTR Repeal A coalition of agricultural organizations representing farmers sent a letter to the U.S. Select Committee on the Chinese Communist Party regarding Permanent Normal Trade Relations with China. The committee is considering recommending that Congress repeal China’s PNTR status, and the groups say the impact would have sharply negative consequences. “We respectfully urge the committee not to recommend revoking China’s PNTR status,” the groups say in the letter. “The negative consequences for American farmers, ranchers, and food producers would be profound, and the economic impact on American workers and rural communities would be felt for many years.” They also point out that China is now the largest buyer of U.S. food and agricultural products, purchasing 19 percent of U.S. exports. “These ag exports are critical to America’s farmers and rural communities,” they wrote. Additionally, they say retaliatory tariffs in 2018 and 2019 led to losing billions in states across the U.S. *********************************************************************************** USDA to Start Issuing Pandemic Assistance Payments USDA will begin issuing more than $223 million in Pandemic Assistance Revenue Program payments. These payments will help producers who suffered a decrease in allowable gross revenue due to COVID-19 for the 2020 calendar year. Eligible applicants must have been in the farming business during at least part of the 2020 calendar year and had a 15 percent or greater decrease in allowable gross revenue for the 2020 calendar year as compared to a baseline year. PARP benefits help address gaps in previous assistance, which was targeted at price loss or lack of market access rather than overall revenue losses. “PARP payments mark the delivery of the final suite of assistance programs provided by the Farm Service Agency and are also one of the first times that the agency delivered a program focused on revenue decreases,” says FSA Administrator Zach Ducheneaux. For more information, contact your local USDA Service Center. *********************************************************************************** Collaboration, Momentum at Sustainable Agriculture Summit Barbara O’Brien, president and CEO of Dairy Management Inc., spoke about challenges facing agriculture during the Sustainable Agriculture Summit in Charlotte, North Carolina. With challenges like a growing global population that needs more food, significant geopolitical challenges, and many others, she says, “We need to take a more thoughtful approach to building resilient food systems, and agriculture must be at the forefront.” The Summit was co-hosted by the Innovation Center for U.S. Dairy and several other national ag organizations to convene the collective food and agriculture value chain to learn, develop, and advance a shared vision for a sustainable and resilient U.S. food system. One highlight of the Sustainable Ag Summit included producers in different U.S. ag sectors sharing how they approach sustainability on their farms. They talked about the successes and challenges in making sustainability gains and the need to safeguard producer livelihood in the context of environmental stewardship. *********************************************************************************** Global Corn Production Rises Global coarse grain production is projected as higher due to higher production forecasts for Ukraine, Russia, and the EU, which are partly offset by a reduction for Mexico. Barley production in Canada and Australia is also projected higher. Coarse grain exports for the October-September trade year increased by 2.3 million tons. The increased global exports are predominantly due to larger corn export forecasts for the U.S. and Ukraine, and larger forecasts for Australian and Canadian barley. Mexico is expected to take in more corn imports, and China will boost barley imports. The U.S. feed grain forecast is unchanged at 400 million metric tons. Total feed grain supply is 439.4 million metric tons. Strong corn exports and healthy outstanding sales, particularly to Mexico, contribute to a 25 million bushel increase in the 2023-2024 U.S. corn export forecast. The corn and sorghum season-average prices remain unchanged, but barley and oats prices will rise. *********************************************************************************** NCGA Announces Corn Yield Contest Winners The National Corn Growers Association announced the winners of the 2023 National Corn Yield Contest. The group of farmers had impressive yields and proved the ingenuity and resilience of U.S. farmers. In its 59th year, the National Corn Yield Contest saw almost 7,000 entries from farmers in 46 states. Of the 10 production categories, Class J had verified yields averaging 269 bushels an acre. The yields included a national record of 623.8 bushels per acre from David Hula of Virginia, beating the previous record of 619.1 bushels per acre. “Year after year, the National Corn Yield Contest remains the most popular program for NCGA members,” says Harold Wolle, NCGA president. “It’s an opportunity for farmers across the country to put their skills to the test and show the true craftsmanship it takes to grow a successful crop.” A complete list of the 2023 National and State winners is available at ncga.com.
| Rural Advocate News | Thursday December 14, 2023 |
Thursday Watch List Markets One day after the Federal Reserve said it expects lower interest rates in 2024, USDA's weekly export sales report will be out at 7:30 a.m. CST Thursday, the same time as reports on weekly U.S. jobless claims, retail sales in November and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 10 a.m. USDA's Livestock, Dairy and Poultry outlook is set for 2 p.m. Weather A small cutoff low in the Four Corners area will continue to produce some waves of showers in the Southwestern Plains for Thursday, being heavy in some areas. That includes snow that could be quite heavy in some areas. The rest of the country will be warm and dry.
| Rural Advocate News | Wednesday December 13, 2023 |
Grassley, Baldwin, Ernst Team Up to Bring Transparency to Fertilizer Market Senators Chuck Grassley, Joni Ernst and Tammy Baldwin are leading a bipartisan push to shed light on market factors driving the cost of fertilizer. Iowa Republicans Grassley and Ernst, along with Wisconsin Democrat Baldwin, have introduced the Fertilizer Research Act. The legislation would require the Department of Agriculture to study competition and trends in the fertilizer market to determine their subsequent impacts on price. Grassley says, "With fertilizer being one of the ag industry's highest input costs, it's problematic farmers have such a limited window into market fluctuations." Within one year of the bill's passage, the Secretary of Agriculture, in consultation with the Economic Research Council, would be required to issue a report on USDA's website regarding the U.S. fertilizer industry. The report would include a description of impacts on the fertilizer market that influence price, market trends in the past 25 years, and impacts of anti-dumping and countervailing duties, among other research items. *********************************************************************************** USDA Releases December Oil Crops Outlook USDA’s monthly Oil Crops Outlook for December reduced Brazil’s production forecast for marketing year 2023/24 by 2.0 million metric tons to 161.0 million metric tons on lower yield. Yield is forecast at 3.53 metric tons per hectare, down one percent from last month’s forecast and two percent below last year’s record yield. Harvested area is forecast at a record 45.6 million hectares, unchanged from last month and up 1.3 million hectares from last year. The shrinking prospects for Brazil’s soybean production have increased the value of U.S. soybeans. In November, soybean cash prices at country elevators in Central Illinois increased by $0.68 per bushel to $13.08 per bushel. Throughout the country, cash prices rallied above $13.00 per bushel by the middle of November and then prices declined to an average of $12.67 per bushel in the first week of December. Despite the gains, the forecast for average soybean price received by farmers for 2023/24 is unchanged this month at $12.90 per bushel as prices have begun to decline in December. *********************************************************************************** USDA’s Alexis Taylor to Lead Trade Mission to the Republic of Korea Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs, Alexis Taylor, will lead an agribusiness trade mission to Seoul, South Korea, on March 25 - 28, 2024. USDA is inviting U.S. exporters wishing to participate in this trade mission to submit their applications. Taylor says, "We see tremendous potential for growth as the demand for health and fitness, ready-to-eat, and convenience products is growing, providing a great opportunity for U.S. exporters to expand their sales in the region." The trade mission will offer U.S. agribusinesses the potential to increase or expand their food and agricultural exports to the region. While in Seoul, participants will engage in two days of business-to-business meetings with potential importers, processors and distributors. Additionally, attendees will receive in-depth market briefings from USDA’s Foreign Agricultural Service and industry trade experts. U.S. exporters who wish to participate in this agribusiness trade mission must apply online by December 18, 2023. *********************************************************************************** Report: 2 million Participants Could be Turned Away From WIC More than two months into fiscal year 2024, Congress has yet to provide additional funding for hunger programs. Additional funding is for the Supplemental Nutrition Program for Women, Infants, and Children program in 2024, according to the Center on Budget and Policy Priorities. WIC's funding needs have grown due to higher-than-expected participation and food costs. Congress has fully funded WIC for more than 25 years. If Congress fails to do so and continues WIC's current funding level for the rest of the fiscal year, WIC will face a roughly $1 billion shortfall. The Center estimates that as a result, states would need to reduce WIC participation by about two million participants nationwide by September. If Congress extends the current funding level rather than fully funding WIC, USDA could take measures to protect the program. But the authority is limited and could only close roughly half of a $1 billion shortfall. The Center adds, "Congress must fully fund WIC to avoid jeopardizing the health of about two million very young children and pregnant or postpartum adults." *********************************************************************************** Food Insecurity in U.S. Households with Older Adults Increased in 2022 In 2022, 9.1 percent of U.S. households with adults aged 65 and older were food insecure at some time during the year. The prevalence of food insecurity in households with adults aged 65 and older in 2022 was statistically significantly higher than the 7.1 percent in 2021 and the 6.9 percent in 2020. USDA’s Economic Research Service monitors the food security status of households in the United States through an annual nationwide survey. In 2022, 11.4 percent of households with an adult aged 65 and older living alone were food insecure, statistically significantly higher than the prevalence in 2021 of 9.5 percent and in 2020 of 8.3 percent. Very low food security is a more severe form of food insecurity in which the food intake of some household members was reduced. The 2022 prevalence of very low food security in households with adults aged 65 and older was 3.4 percent, compared to 2.8 percent in 2021. The data was released this month in USDA’s Household Food Security in the United States in 2022. *********************************************************************************** USDA Signs Agreement with AFA to Prepare Young People for Careers in Agriculture Agriculture Secretary Tom Vilsack has signed a Memorandum of Understanding with Agriculture Future of America. The MOU formalizes a partnership to promote the common goals of strengthening the future competitiveness and sustainability of the U.S. agriculture industry by preparing more young people for careers in agriculture. Vilsack says, “This partnership will enhance USDA’s involvement with AFA and its leadership development and education mission.” USDA and AFA will continue to collaborate on leadership development efforts, and link young leaders with career opportunities in food, agricultural science, natural resources, and related fields. Under the MOU, USDA commits to advancing opportunities for AFA delegates to participate in USDA programs, including internships. AFA will provide occasions for USDA to meet with AFA delegates to share information about these opportunities. AFA President and CEO Mark Stewart adds, “This agreement reinforces our belief that connecting young leaders with USDA initiatives will enrich their careers and contribute to a more resilient and competitive agriculture industry.”
| Rural Advocate News | Wednesday December 13, 2023 |
Wednesday Market Watch Markets The U.S. Labor Department's producer price index will be out at 7:30 a.m. CST Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. The Federal Reserve will make its announcement on interest rates at 1 p.m. with economic projections also expected. Attention on South American weather remains a given, this time of year. Weather A cutoff low-pressure system is building waves of showers into the southwestern Plains on Wednesday morning, which will spread through Colorado to West Texas. It will be just cold enough in some areas to produce snow, especially late this afternoon through midday Thursday. The system will be a slow-mover, creating some heavy precipitation in the region that should help out with the remaining drought.
| Rural Advocate News | Tuesday December 12, 2023 |
USDA Projects Create Economic Opportunity in Underserved Rural and Native Communities The Department of Agriculture Monday announced more than 200 projects to improve infrastructure, housing and economic conditions for underserved rural and Native American communities. These projects are funded by a Department of Agriculture's $81 million investment. USDA is investing in several programs designed to bring federal funding and resources to people and communities in underserved rural areas. The projects will benefit hundreds of thousands of people in 42 states, Puerto Rico and the Marshall Islands. USDA Rural Development also unveiled two new web resources that underscore the agency’s mission to ensure all people have equitable access to federal programs. A new history webpage traces USDA Rural Development’s evolution from the Great Depression and New Deal to the present. Meanwhile, the Rural Partners Network has brought together a coalition of 24 federal agencies that offer programs and funding designed specifically for rural communities. A new feature on Rural.gov makes it easier to find these federal resources in one place. *********************************************************************************** Despite Rising Wage Rate, Farmers Must Rely on H-2A Program New data from the American Farm Bureau Federation shows H-2A usage reached new highs in fiscal year 2023. The Market Intel report says that comes despite an increase in the Adverse Effect Wage Rate, which outpaced the hourly wage growth rate of all private employees. This increase in both demand for workers and wage rate continues to put stress on the bottom lines of farmers and ranchers. The data shows the total number of certified H-2A positions at 378,513, an increase of two percent over fiscal year 2022. While this is a slower rate of increase than in years past, the number of positions certified is still up by more than 100,000 workers compared to fiscal year 2020. This is coupled with a nearly 19 percent increase in the required wage rate since fiscal year 2020, causing labor to be one of the costliest aspects of doing business for farmers and ranchers. AFBF President Zippy Duvall says, “This data shows how important and urgent it is that we get a workable fix for the H-2A program and the AEWR.” *********************************************************************************** Population and Income Drive World Food Production Projections The global agriculture system will be expected to provide more food as the world's population increases. To better understand how the world agriculture system may grow in response by 2050, researchers at USDA’s Economic Research Service created a range of scenarios based on population growth. Under medium population growth, production worldwide would have to increase to 14,060 trillion crop calories to feed 9.75 billion people in 2050. This is a 47-percent increase in crop calories from a 2011 baseline. Crop calories, the total calories available from crops, are a measure of the size of global agriculture since crops can be either consumed directly as food or fed to animals to be consumed as meat, dairy products, and eggs. In a high population growth scenario, 15,410 trillion crop calories would be needed to feed 10.8 billion people, a 61-percent increase in calories from the 2011 baseline. With both the medium and high population growth scenarios, researchers assumed that as per capita incomes rise, people would increase their overall consumption of calories. *********************************************************************************** Changing Climate Means More Pests for Almonds, Peaches, Walnuts Department of Agriculture research shows climate change may increase the insect population that poses a threat to the specialty crops industry. Led by the National Institute of Food and Agriculture and the University of California, the research shows populations of three major insect pests – codling moth, peach twig borer and oriental fruit moth — are projected to increase mainly due to rising temperatures. The three pests are "notorious for infesting most of the walnut, almond and peach orchards of California, causing extensive damages by reducing quality of fruits and nuts,” researchers say. Climate change can lead to shifts in the timing of seasons, including warmer winters, earlier springs and hotter summers, and these conditions can disrupt the natural life cycles of pests. The study revealed that due to temperature increases, these insects are expected to appear up to 28 days earlier in the spring, and the time between generations is expected to shorten by up to 19 days. The changes may be gradual, with major changes noticed within 20 years. *********************************************************************************** New Board Members Announced for National FFA Foundation Sponsors’ Board The National FFA Foundation announced its new chair for the Sponsors’ Board during the 96th National FFA Convention & Expo in Indianapolis this fall. Mary Snapp, vice president of strategic initiatives for Microsoft, was named chair for the upcoming year. Snapp grew up in rural Kansas and joined Microsoft in 1988 as the company’s first female attorney. The National FFA Sponsors’ Board is made up of top corporate executives who wish to support agricultural education and the National FFA Organization. Six other new board members were announced. Those include Jackie Bailey, senior vice president of transportation for CHS Inc.; John Barton, chief financial officer for Ardent Mills; Mel Halkyard, vice president, of global digital transformation for Elanco Animal Health; Jim Krombach, director of quality assurance for Culvers Franchising System, LLC; Clint Mefford, head of U.S. livestock communications and marketing operations for Zoetis; and Joe Michaels, senior director of product portfolio planning for Kubota North America. These members will serve on the board for three years. *********************************************************************************** Fuel Prices Post 12 Weeks of Decline For the 12th consecutive week, the nation's average price of gasoline declined, falling 9.6 cents from a week ago to $3.12 per gallon. The national average is down 23.7 cents from a month ago and 10.1 cents per gallon lower than a year ago. The national average diesel price fell 8.4 cents in the last week and stands at $4.10 per gallon— 86 cents lower than one year ago. GasBuddy's Patrick De Haan says, "With nearly 80,000 gas stations in the U.S. now priced below $3 per gallon, and 23 states also seeing average prices of $2.99 or less, motorists are getting substantial relief at the pump in time for the holidays." The trend is likely to continue in most states this week, while the national average could soon fall below $3.05 per gallon, the lowest since 2021. Oil prices continue to struggle under the weight of a global economic slowdown, seeing consumption decrease, while oil production has risen in the United States, Canada, and other non-OPEC producers.
| Rural Advocate News | Tuesday December 12, 2023 |
Tuesday Watch List Markets The U.S. Labor Department issues the consumer price index for November at 7:30 a.m. CST Tuesday. The Federal Reserve starts its two-day meeting with many expecting the federal funds rate to stay unchanged at Wednesday's conclusion. Traders continue to keep close watch on South American weather with an interest in soybean crop estimates for Brazil. Weather Much of the country is quiet early on Tuesday, though there is a disturbance building across the Southwest. That system will move into the Southern Plains Tuesday night and start to spread showers through Texas. The main punch of the storm will be from Wednesday through Friday, which could culminate in heavy precipitation for areas still wrestling with drought.
| Rural Advocate News | Monday December 11, 2023 |
December WASDE Lowers Corn Stocks, Increases Exports The World Ag Supply and Demand Estimates from USDA show the 2023-2024 U.S. corn outlook calling for higher exports and lower ending stocks. Exports rose 25 million bushels to 2.1 billion, reflecting the pace of sales and shipments to date. Corn ending stocks dropped 25 million bushels to 2.1 billion. The season-average corn price is unchanged at $4.85 a bushel. Soybean supply and use projections are unchanged from November, and the season-average soybean price forecast remains $12.90 a bushel. USDA reduced Brazil’s soybean production by two million tons to 161 million because of dry weather. The U.S. wheat outlook is for unchanged supplies and domestic use, higher exports, and reduced ending stocks. Exports rose 25 million bushels to 725 million. All-wheat ending stocks dropped 25 million bushels to 659 million, 13 percent above 2022. The season-average farm price is up a dime per bushel at $7.30 on lower projected ending stocks. *********************************************************************************** Beef Exports Show Modest Rebound U.S. pork exports posted another strong performance in October, led by record-breaking shipments to Mexico and broad-based growth elsewhere. October pork exports totaled 245,345 metric tons, up three percent year-over-year and the largest since June. The value reached $688.2 million, down two percent from 2022. Shipments to Mexico reached new highs in both volume and value. For the first 10 months of 2023, pork exports were up nine percent from last year at 2.38 million metric tons, with value up six percent to $6.66 billion. Beef exports totaled 104,446 metric tons in October, down 17 percent from last year but six percent above the low volume in September. Export value reached $636 million, down 11 percent from last year but five percent above September. January-October U.S. beef exports reached 1.08 million metric tons, down 13 percent from the record pace of 2022, while value dropped 17 percent to $8.32 billion. *********************************************************************************** Reforms in a New Farm Bill Senator Chuck Grassley (R-IA) and Representative Chip Roy (R-TX) called on Senate and House leadership to address several important topics in writing a new farm bill. They’re asking leaders to address the impacts of inflation, waste in farm and nutrition programs, and foreign influence in U.S. agriculture. In a letter to leaders in both chambers, they say the administration and its reckless spending have led the U.S. to record inflation. “By making conservative reforms to key programs, we will be able to tame inflation while also keeping in place a responsible safety net for U.S. farm families,” they say. They also call for reforms to the SNAP program by citing its $1.2 trillion price tag and growing error rate. They’re also urging Congress to bring more accountability to the USDA’s Commodity Credit Corporation, which they say is a bureaucratic “slush fund,” and oversight would save $8 billion over 20 years. *********************************************************************************** Groups Applaud Renewable Fuels for Ocean Vessels Act Groups like Clean Fuels Alliance and the American Soybean Association applauded representatives from California and Iowa for introducing the bipartisan Renewable Fuel for Ocean-Going Vessels Act. The act designates renewable fuel used in ocean-going vessels as an “additional renewable fuel” (similar to jet fuel) under the Renewable Fuel Standard. This enables companies to preserve Renewable Identification Number credits in the program. “International shipping companies and cruise lines are increasingly looking for low-carbon biodiesel to meet climate goals and consumer demand,” says Kurt Kovarik, Vice President of Federal Affairs for Clean Fuels. “This will remove a regulatory roadblock and enable biodiesel and renewable diesel producers to meet the low-carbon fuel needs of shipping companies at a competitive price.” American Soybean Association President Daryl Cates applauds the effort to acknowledge marine vessels as a new and exciting market opportunity for agriculture. The RFS originally excluded fuels in ocean-going vessels from blending obligations *********************************************************************************** TFI Celebrates Good News on Hypoxia The Fertilizer Institute celebrated the good news in the recently released Hypoxia Task Force’s report to Congress. It shows significant progress toward the goals of the Gulf Hypoxia Action Plan of 2008. TFI President and CEO Corey Rosenbusch says it is good news. While there is still work to do, he says the report shows significant progress. “TFI has long advocated for grower adoption of nutrient stewardship practices such as the 4Rs because they work,” Rosenbusch says. “These practices keep fertilizers on fields where they belong and out of the nation’s waterways where they do not.” He also says it proves that science-based conservation practices voluntarily adopted by farmers and ranchers are having a tremendous impact on the nation’s water quality. “They should be applauded for their continued efforts to grow more food with less environmental impact,” he adds. TFI will use the report for continued farmer and policymaker education. *********************************************************************************** Feed Industry Applauds FEED Act The American Feed Industry Association appreciates the introduction of the innovative Feed Enhancement and Economic Development Act. Supporters say it will improve the regulatory environment for new animal feed ingredients. The FEED Act will amend the Federal Food, Drug, and Cosmetic Act to establish a regulatory pathway for a new category of animal food substances that act solely within animals’ gut microbiomes or in the feed they are digesting to provide a wide range of benefits. This will make sure the Food and Drug Administration has the power it needs to ensure regulations keep pace with scientific innovation in feed. “We are excited that the bill has been introduced in both chambers and already has the bipartisan and bicameral support we hoped for,” says Constance Cullman, president and CEO of the AFIA. “This will spark the drive to nutritional innovation that improves animal health and production while addressing public health challenges."
| Rural Advocate News | Monday December 11, 2023 |
Top 5 Things to Watch - Yield Winners, Fertilizer Facts and Cattle Rumors 1. Yield winners announced: Both the National Corn Growers Association and the National Sorghum Producers are expected to announce their annual yield contest winners. Will we see familiar names, or will some new contestants pop in with top yields? 2. Global Fertilizer Outlook: DTN Staff Reporter Russ Quinn continues our deep dive into global fertilizer conditions on the supply and demand side along with what possible wild cards could affect price. 3. Cattle market rumors: Late in the past week, rumors flew about reasons for the drop in cattle futures prices while herd size remains historically small. At this writing it appears to be the "X" (formerly known as Twitter) factor -- that is, a remark thrown out into social media that then fed on itself. Ah, social media, we get what we pay for. DTN editors and analysts will look under whatever rocks turn up at the bottom of that stream. 4. Weather cools down: The weekend band of snow near the U.S.-Canada border pushed a cold front south through the Plains and east through the Upper Midwest. Temperatures have dropped some 20 degrees Fahrenheit from the previous week, but still remain mild by December standards through this week, well-above normal across northern zones. 5. Economic reports to watch: On Monday, USDA's weekly grain export inspections report hits at 10 a.m. On Tuesday, the U.S. Labor Department issues its consumer price index for November at 7:30 a.m., and the Federal Reserve starts its two-day meeting. Wednesday the U.S. producer price index will be out at 7:30 a.m., followed by the Energy Department's weekly inventory report at 9:30 a.m. The Federal Reserve will make its announcement on interest rates at 1 p.m. Then, Thursday sees USDA's weekly export sales report at 7:30 a.m., the same time as weekly U.S. jobless claims, retail sales in November and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 10 a.m. USDA's Livestock, Dairy and Poultry outlook is set for 2 p.m. The week wraps up with Friday's release of the Fed's report on U.S industrial production at 8:15 a.m., while the National Oilseeds Processors Association releases its estimate of members' November soybean crush at 11 a.m.
| Rural Advocate News | Monday December 11, 2023 |
Monday Watch List Markets Back from the weekend, traders will continue to keep watch over South American weather. USDA's weekly report of grain export inspections is set for 10 a.m. CST Monday. Traders will also be watching for this week's Fed announcement, due out Wednesday at 1 p.m. after a two-day meeting. Weather A storm system from the weekend continues to push off the East Coast Monday morning with significant precipitation in the Northeast. It's cooler and drier behind the system, but still warm for December across northern locations. Another little disturbance and front are moving into the Northern Plains and some light precipitation will move through Monday, mostly in the form of snow.
| Rural Advocate News | Friday December 8, 2023 |
Farmers Meet Nitrogen Loss Goals Two Years Early A new report from the EPA’s Hypoxia Task Force shows that the hard work of farmers and ranchers to reduce nutrient losses in the Mississippi River watershed is paying off. The report reveals the 12 participating states have met interim nitrogen reduction goals two years ahead of schedule and are also making considerable progress in bringing down phosphorous losses. The goals are part of a comprehensive strategy established by state and federal agencies across the Mississippi River watershed region. Farmers and ranchers were tasked with helping to reduce nutrient losses by 20 percent by 2025. “Farmers are problem-solvers by nature, and the work being done in the Mississippi River is proof of what happens when we come together,” says Farm Bureau President Zippy Duvall. “I commend the farmers in each of the states for their instrumental role in making these strides and encourage continued work to meet the 2035 goals.” *********************************************************************************** Ag Community Writes Trade Commission Regarding Tariffs The National Corn Growers Association joined 57 organizations in urging the International Trade Commission to consider the impacts that tariffs on Moroccan fertilizer are having on farms. The concerns were expressed in a letter that comes after the ITC was ordered by the U.S. Court of International Trade to reconsider its determination of material injury in a decision issued earlier in September. “Rising prices for fertilizer inputs have strained America’s farmers and ranchers and have impacted availability for this critical component of nutrient and yield management,” the letter says. “Without predictable options to source this product, farmers struggle to plan for the future.” The groups noted that issues surrounding the international supply chain further complicate farmers’ ability to source phosphate. It also says the ITC originally made some inferences on the ability to re-ship products that are not grounded in reality. Efforts to reduce the duties will continue for months. *********************************************************************************** New York City Moving to Renewable Diesel New York City has a plan in place to become the first city on the East Coast to transition all heavy-duty vehicles in the city’s fleet from fossil to renewable fuel. The fleet includes more than 12,600 on- and off-road trucks and specialized equipment that operates on diesel fuel. By the end of 2024, they’ll all operate on renewable diesel. Renewable diesel is proven to reduce carbon emissions and will replace up to 16 million gallons of fossil fuel used annually to power the city’s heavy-duty fleet, which includes garbage trucks and ambulances. After the full rollout of 16 million gallons of renewable diesel, the city will have cut 128 billion grams of carbon dioxide pollution each year. The transition already began in September with 2.5 million gallons of renewable diesel already used across heavy-duty vehicles. Renewable diesel fully replaces fossil diesel, protecting the environment and delivering the same quality fuel. *********************************************************************************** USB Elects New Leaders Farmer-leaders of the United Soybean Board elected Steve Reinhard from Ohio as the 2024 chair and ten additional farmer-leaders to serve on the Executive Committee. “I’m honored and excited to take on the role of USB’s new board chair,” Reinhard says. “Together with the dedicated team and the support of our farmers, I look forward to continuing our commitment to sustainability and innovation in the soy industry.” He also says the organization will focus on “driving positive change, leveraging research and investments to meet consumer demands, and furthering the success of America’s soybean farmers.” The USB also announced that Lucas Lentsch will be the new CEO starting on January 1. Lentsch currently serves on the Dairy Management, Inc. leadership team, which manages the national dairy checkoff. “Lucas Lentsch is the right leader at the right time to continue the meaningful work of the soy checkoff,” says Meagan Kaiser, outgoing USB Chair. *********************************************************************************** New Land Transfer Program Helps with Farmland Access Working in partnership with land protection leaders across the United States, American Farmland Trust announced a new “Land Transfer Navigators” program. It’s a partnership with the Natural Resource Conservation Service that will help existing farmers and landowners retire with confidence and help new, beginning, and underserved farmers gain secure, equitable land access. Nearly 300 million acres of American farmland are expected to change hands in the next 20 years. As aging farmers exit the field, the future is uncertain for about one-third of the country’s farm and ranch land. “Farmland is most at risk of conversion during generational transition,” says AFT President and CEO John Piotti (pee-OTT-tee). “With the wave of transfers coming, we risk losing far too much farmland to low-density housing, subdivisions, and strip malls.” Land Transfer Navigators will build bridges between incoming and outgoing farmers, leveraging land protection as a strategy to facilitate successful and affordable land transfer. *********************************************************************************** New VP of Science at the Sugarbeet Association The American Sugarbeet Growers Association has hired Dr. Nicholas Storer as Vice President of Science and Innovation. He’ll begin those duties on January 1. Dr. Storer recently was the Stewardship and Regulatory Director for Corteva Agriscience. “There are tremendous challenges and opportunities for our industry in the years ahead,” says Nate Hultgren, President of the ASGA. “Dr. Storer’s deep knowledge and broad experience in both crop protection and seed genetics will provide the leadership and guidance needed for our industry to remain efficient and competitive for decades to come.” Dr. Storer says he’s excited to bring his science and regulatory policy experience to support the development and deployment of the most effective solutions that sugarbeet growers need. “I’m really looking forward to getting to know everyone involved in sugarbeet production and research,” Dr. Storer adds. Storer received a bachelor’s in Natural Sciences, a Master’s in Zoology, and a doctorate in entomology.
| Rural Advocate News | Friday December 8, 2023 |
Friday Watch List Markets The U.S. Labor Department releases its unemployment report for November at 7:30 a.m. CST Friday, followed by the University of Michigan's consumer sentiment index at 9 a.m. At 11 a.m., USDA releases its WASDE and Crop Production reports for December. Weather A storm system moving along the Canadian border is bringing snow to the southeastern Canadian Prairies and North Dakota on Friday with some moderate accumulation and blustery winds. The system will develop some rain showers and thunderstorms for the South-Central U.S. and snow in the Colorado front-range by the afternoon as well. Temperatures ahead of the system are well
| Rural Advocate News | Thursday December 7, 2023 |
USDA Announces Crop Insurance Improvements The Department of Agriculture Wednesday announced updated to the Federal Crop Insurance Program. The updates affirm the use of USDA conservation practices as Good Farming Practices for crop insurance. Recently, USDA’s Risk Management Agency updated the Good Farming Practices Handbook, as part of the agency’s broader efforts to support conservation and climate-smart activities as well as to improve crop insurance for agricultural producers. RMA Administrator Marcia Bunger says, “This update affirms producers can have peace of mind that using conservation practices will not impact their crop insurance.” The updated handbook recognizes all conservation practices offered by USDA’s Natural Resources Conservation Service as Good Farming Practices for crop insurance. Essentially, appropriate use of NRCS conservation practices will have no impact on crop insurance coverage, which affirms how the rules have worked on the ground for years. The updated handbook builds on similar efforts, including RMA’s designation of planting cover crops as a Good Farming Practice in 2019. *********************************************************************************** USDA Now Accepting Applications for Farm Loans Online The Department of Agriculture has launched an online application for Direct Loan customers. More than 26,000 customers who submit a Direct Loan application each year can now use an online, interactive, guided application that is paperless. The online application also provides helpful features, including an electronic signature option, the ability to attach supporting documents such as tax returns, complete a balance sheet and build a farm operating plan. This tool is part of a broader effort by USDA's Farm Service Agency to streamline its processes, improve customer service, and expand credit access. Deputy Secretary Xochitl Torres Small says, "With USDA Farm Service Agency's new online loan application feature, it is now easier for producers to get the financing they need to start, expand, or maintain their farming and ranching operations." Through a personalized dashboard, borrowers can track the progress of their loan application. It can be accessed on farmers.gov or by completing FSA's Loan Assistance Tool at farmers.gov/loan-assistance-tool. *********************************************************************************** Monthly Dairy Products Report: Mostly Higher Cheese Production USDA’s Monthly Dairy Products Report released this week shows total cheese output, excluding cottage cheese, was 1.19 billion pounds, in October. That figure is 0.8 percent above October 2022 and 3.9 percent above September 2023. Italian-type cheese production totaled 506 million pounds, 1.4 percent above October 2022 and 5.6 percent above September 2023. American-type cheese production totaled 474 million pounds, 0.3 percent below October 2022's but 2.5 percent above September 2023's. Butter production was 161 million pounds, 0.9 percent below October 2022, but 12.5 percent above September 2023. Nonfat dry milk for human consumption came in at 127 million pounds, down 1.2 percent. Skim milk powder production was 42.5 million pounds, down 34.9 percent, from the same time last year. Dry whey total production was 75.6 million pounds, up 0.4 percent, compared to October, 2022. Finally, regular ice cream production was 57.9 million gallons, down 2.6 percent from the same time last year. *********************************************************************************** Foodservice Claims Largest Share of U.S. Food Dollars In 2022, more than a third of U.S. dollars spent on domestically produced food went to foodservice establishments, which includes restaurants and other food-away-from-home outlets. At 34.1 cents per food dollar in 2022, the foodservice share increased 1.6 cents from 2021 to reach its highest value in the USDA, Economic Research Service's Food Dollar Series. Industry groups add value by transforming the inputs they purchase from other industry groups and selling their output at higher prices. For instance, foodservice establishments prepare meals using food bought from distributors, such as those in the wholesale trade industry group, and utilities, such as gas and electricity, bought from establishments in the energy industry group. Prices paid by customers include the value added by the restaurant and the cumulative value added by all establishments before the restaurant. Annual shifts in the food dollar shares among industry groups occur for various reasons, including changes in the balance of food at home and away from home. *********************************************************************************** USDA Fulfills Long-Standing Tribal Requests Agriculture Secretary Tom Vilsack Wednesday announced USDA is fulfilling some long-standing Tribal requests. Specifically, USDA is partnering with Tribal Nations in empowering Tribal food sovereignty and co-stewardship of federal lands and waters. Secretary Vilsack announced the first grant recipients under the Indigenous Animals Harvesting and Meat Processing Grant Program and advances in Forest Service co-stewardship with Tribes, including 120 new agreements totaling more than $68 million in investments. Secretary Vilsack also announced the inaugural appointees of the new Tribal Advisory Committee. Secretary Vilsack made the announcements at the 2023 White House Tribal Nations Summit, where Tribal leaders gathered for conversations with President Biden and senior administration officials. Vilsack says, "As Tribes have requested, we are reshaping our programs to incorporate Tribal and Indigenous perspectives, remove barriers, and encourage Tribal self-determination." Vilsack says the investments will create economic opportunities in Tribal communities, elevate the agency's work to increase co-stewardship in forest management, and increase the availability of affordable, healthy protein sources from Indigenous animals. *********************************************************************************** NASS Inducts Two Former Employees Into Hall of Fame USDA’s National Agricultural Statistics Service inducted two former employees to its Hall of Fame Wednesday. The NASS Hall of Fame honors individuals whose work has had a lasting impact on agricultural statistics. This year’s inductees are Carol House and Raymond “Ron” Bosecker. NASS Administrator Hubert Hamer says, “Our two honorees distinguished themselves with their leadership, by being experts in their fields.” Carol House joined NASS in 1976 as a student assistant. During her career, she authored and co-authored numerous reports that impacted NASS methodology, including those on her pioneering work in Computer Assisted Telephone Interviewing. Additionally, House was the first woman hired directly into NASS to rise to the level of Senior Executive. House retired in 2010. Raymond “Ron” Bosecker began his career at NASS in 1964 as a student trainee at the Illinois State Statistical Office. He was reassigned in early 1999 as Acting Deputy Administrator for Field Operations, before being selected as the NASS Administrator in December 1999. Bosecker held the position of Administrator until his retirement in 2008.
| Rural Advocate News | Thursday December 7, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 10 a.m. South American weather remains important to traders ahead of Friday's WASDE report. Weather A storm system will move across the U.S.-Canada border on Thursday, bringing areas of scattered showers, including some snow accumulation through Friday. Winds with the system will also be fairly strong. Ahead of the system, temperatures continue to be very warm for December.
| Rural Advocate News | Wednesday December 6, 2023 |
Farmer Sentiment Improves, Producers Credit Stronger Financial Conditions For the second month, farmer sentiment improved as the Purdue University-CME Group Ag Economy Barometer climbed five points. November's 12-point rise in the Current Conditions Index to a reading of 113 was primarily responsible for this month's sentiment improvement as the Index of Future Expectations only improved by two points. Both sub-indices exceeded their year-ago levels in November. The Current Conditions Index increased by 15 percent, and the Future Expectations Index was up 11 percent compared to November 2022. The improved perception among U.S. farmers regarding their farms' financial condition and prospects contributed to this month's more positive sentiment reading. The Farm Capital Investment Index also rose during November, although respondents who said it was a good time to invest were more likely to point to rising dealer inventories of farm equipment as a reason than strong farm cash flows. Farmers continue to be relatively optimistic about future values for farmland as the short-term farmland index held steady while the long-term index drifted lower. *********************************************************************************** Crop Insurance Industry Opposes GAO Report Crop Insurance groups oppose a recent Government Accountability Office report the industry says is fraught with recommendations that would dismantle the successful public-private partnership that delivers federal crop insurance. In a joint statement, the Crop Insurance and Reinsurance Bureau, National Crop Insurance Services, and American Association of Crop Insurers say the report contains several recommendations that would result in reduced participation in the long run. The groups say GAO mischaracterized the economics of the delivery system when it states that "the increase in crop prices did not increase the workload to sell and service the policy." This statement ignores the fact that since 2011 the crop insurance industry has worked with USDA to implement both the 2014 and 2018 Farm Bills. Both of these pieces of legislation increased the availability of crop insurance products nationwide. New crop insurance products have since been developed along with specialty crop and livestock product expansion. The industry charges that the workload has, in fact, increased to meet the risk management needs of America's farmers and ranchers. *********************************************************************************** Lawmakers Request New USDA Emergency Relief Program A group of lawmakers this week expressed concerns regarding the Department of Agriculture's requirements for the Emergency Relief Program. In a letter to USDA, Republican Senator Roger Marshall of Kansas and Republican Representative Jodey Arrington of Texas led the effort. The lawmakers say USDA's 2022 Emergency Relief Program requirements are misguided and losing sight of the relief program's intent outlined by Congress when it was created. The Biden Administration's USDA made requirements that have nothing to do with helping farmers deal with natural disasters. In fact, by the USDA attaching excessive conditions to receive aid, this federal relief program could force farmers to wait even longer for assistance or completely jeopardize their ability to access the program. The letter states, “American producers have experienced significant losses, and the Administration has taken an approach that does not reflect Congressional intent.” The lawmakers “strongly request the USDA abandon this current program” and implement the framework of 2021 ERP Phase 1 as quickly as possible. *********************************************************************************** Some Crops Tolerate Ozone Pollution Better Differences in the photosynthetic "machinery" of certain crop plants can make them more or less prone to harm caused by ground-level ozone pollution. The research was developed by USDA’s Agricultural Research Service and University of Illinois scientists in Urbana-Champaign. The findings—that so-called "C4" crops like corn and sorghum tolerate increased ozone levels better than "C3" crops, like rice or snap beans—open the door to better models for predicting crop responses to the effects of global climate change, as well as developing more resilient varieties that can sustain humanity’s increasing demand for food, feed, fiber and fuel. While both C3 and C4 crops use the enzyme called rubisco to convert carbon dioxide into sugars, C4 crops isolate rubisco in specialized cells where the concentration of carbon dioxide is very high. This enables higher rates of photosynthesis and greater efficiency of water use. Thus, C4 plants have lower stomatal conductance, resulting in less diffusion of carbon dioxide and ozone into leaves. *********************************************************************************** USDA/EPA Partnership to Improve Access to Modern Wastewater Infrastructure The Department of Agriculture is strengthening its partnership with the Environmental Protection Agency to help people in rural and underserved communities access affordable, modern and safe wastewater infrastructure. The actions further the continued collaborations between both agencies to revitalize the nation’s wastewater infrastructure, improve water quality and protect the health of people living in rural areas, according to USDA. Rural Development Deputy Under Secretary Farah Ahmad says, “Decentralized wastewater systems are an integral component of our nation’s wastewater infrastructure, especially in rural areas where centralized treatment is often too expensive or unavailable,” USDA and EPA officials signed a Memorandum of Understanding outlining an industry-wide initiative to improve the overall performance and management of decentralized systems in rural areas. Across the U.S., decentralized septic or onsite technology can provide communities and homeowners with a safe, affordable wastewater treatment option. The Decentralized Wastewater Management MOU was developed by EPA in 2005 and is updated every three years. *********************************************************************************** USDA Announces Grants to Increase Equitable Access to Healthy Meals for Children The Department of Agriculture and the Food Research and Action Center have teamed up to award five organizations $1.1 million. The grants aim to research barriers to equitable access in the federal child nutrition programs and identify strategies to eliminate them. The efforts to improve food security for school children and children in childcare settings are critical to fueling the health and development of our nation's children, according to USDA. These programs, including USDA's National School Lunch Program, are instrumental in reducing childhood hunger. Many eligible children are either not participating in the programs or do not have programs available to them. The services delivered can vary by community, which could make inequities for historically and currently marginalized communities worse. Grants were awarded to Johns Hopkins University, Trustees of Indiana University, San Antonio Metropolitan Health District, Hunger Solutions Minnesota, and Feeding Kentucky.
| Rural Advocate News | Wednesday December 6, 2023 |
Wednesday Watch List Markets Day two of DTN's Ag Summit begins at 8:30 a.m. CST Wednesday. Before that, at 7:30 a.m., the U.S. Commerce Department will report on the U.S. trade deficit for October and a report on U.S. productivity in the third quarter will also be issued. The U.S. Energy Department's weekly inventory report will follow at 9:30 a.m., including an update on ethanol production. Weather Dry conditions are likely Wednesday across the center of the country, along with seasonably warm temperatures. The dry conditions won't stick around too long as more precipitation is expected late this week into this weekend for portions of the Plains, Midwest, and Delta.
| Rural Advocate News | Tuesday December 5, 2023 |
Farmers Freedom Act to Address Government Overreach Senator Mike Rounds (R-SD) and multiple colleagues introduced legislation to address federal overreach and provide regulatory certainty. The Farmers Freedom Act of 2023 would protect the definition of prior converted cropland in the Biden administration’s most recent Waters of the U.S. Rule. “For far too long, producers have been subject to a number of complex and burdensome WOTUS rule changes,” Rounds says. “The previous Navigable Waters Protection Rule worked to protect owners of prior converted cropland from undue regulation while providing producers with needed flexibility.” He also says the legislation seeks to restore this definition of prior converted cropland and prevent further overreach on farmers and ranchers, who know their land better than any D.C. bureaucrats. Kevin Cramer (R-ND), one of the co-sponsors, says landowners need more freedom to use their land as they see fit without excessive and burdensome environmental regulations. “Producers are always the best land caretakers,” Cramer adds. *********************************************************************************** USDA to Conduct the 2023 Census of Aquaculture The USDA’s National Agricultural Statistics Service will begin mailing the 2023 Census of Aquaculture forms starting December 18. The agency will mail the forms to all producers who indicated in their 2022 Census of Agriculture that they produce and sell aquaculture products. The deadline to respond will be January 15, 2024. An ag census special study, the Census of Aquaculture will provide comprehensive data at the state and national levels, including production volumes and methods, surface water acres and sources, and sales. Federal, state, and local governments, agribusinesses, trade associations, and producers can use this data. “The information that respondents provide will serve as the foundation for many decisions involving the sustainability and growth of the aquaculture sector for years to come,” says NASS Administrator Hubert Hamer. “It’s an opportunity to share your voice with decision-makers.” The agency made survey responses more convenient with their online Respondent Portal at accounts.usda.gov. *********************************************************************************** Taylor to Lead Trade Mission to Korea USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an agribusiness trade mission to Seoul (soul), South Korea, March 25-26, 2024. Taylor says the agency is inviting U.S. exporters who wish to participate in this trade mission to submit their applications. “North Asian markets are a source of stability for America’s exports and an opportunity for market share expansion due to its heavy reliance on food imports,” she says. “While South Korea is already one of our top export markets, we see tremendous potential for growth.” While they’re in Seoul, participants will engage in two days of business-to-business meetings with potential importers, processors, and distributors. With a population of about 52 million people and limited arable land, the Republic of Korea relies on imports to satisfy consumer demand for food variety, lower prices, and greater convenience. In 2022, South Korea imported about $41 billion worth of agricultural goods. *********************************************************************************** Farm Loan Performance Strong as Debt Grows Farm debt balances at commercial banks grew steadily in the third quarter, but loan performance remained strong in the Kansas City Fed’s District. Despite some indications of slower lending activity in recent surveys and subdued loan demand for some lenders, outstanding debt at commercial banks, in aggregate, grew at a pace similar to last year. Alongside ongoing strength in farm finances, delinquency rates on agricultural loans dropped for the third consecutive year and remained at historically low levels. Steady loan growth has coincided with a pullback in deposit growth and firmed liquidity at agricultural banks. Profits for agricultural banks have stayed solid with support from higher interest income. The balance of agricultural debt continued to increase alongside a growing demand for production loans. According to commercial bank Call Reports, farm debt was five percent higher than the same time last year and increased at a similar pace for almost two years. *********************************************************************************** Season Two of Farm Stress Real Talk Podcast Available Season two of Penn State University Extension’s podcast called “Farm Stress Real Talk” is now available. The podcast focuses on supporting farmers, farm families, and workers in the commercial agriculture industry who are experiencing stress. During the program, the PSU extension farm stress team conducts informal educational conversations with a diverse range of educators, Penn State faculty members, and agricultural professionals. These interviews are designed to give farmers practical strategies to balance farm responsibilities with their own well-being. Dairy extension educator Ginger Fenton says the podcasts are a convenient resource. “We know farmers are busy, so we thought a podcast with targeted, practical information would be a good way to reach them,” she says. “Farmers can listen to the podcast while doing chores or operating machinery.” Season two episodes will focus on strategies to address stress proactively. The second season of the podcast is available on the Penn State Extension website. *********************************************************************************** Iowa Corn Sponsors First NASCAR Cup Race in the State The Iowa Corn Growers Association is proud to be a partner for the first-ever NASCAR Cup Series race in the state. The “Iowa Corn 350, Powered by Ethanol” will showcase ethanol’s performance at the fastest short track on the planet, which is surrounded by corn fields. “I’m pleased to share why choosing higher ethanol blends benefits everyone,” says Stan Nelson, president of the Iowa Corn Promotion Board. “We can make a sustainable difference today without buying a new vehicle, but by simply choosing instead to fuel up with ethanol at the pump.” He also says ethanol is the most affordable fuel option on the market today. The race will take place at 6 p.m. Central Time on Sunday, June 16, 2024, and be shown live on the USA Network. “This race will give us as farmers a platform to share the benefits of ethanol,” says Jolene Riessen, President of the Iowa Corn Growers.
| Rural Advocate News | Tuesday December 5, 2023 |
Tuesday Watch List Markets There is an index of U.S. service activity from the Institute of Supply Management due out at 9 a.m. CST Tuesday, but not much else. Traders remain attentive to weather in Brazil. Weather A clipper system will continue to move through the eastern Midwest for Tuesday. A mix of rain and snow is expected and some minor snow accumulation may be possible across Illinois into western Ohio. Well-above normal temperatures will enter the Plains and Midwest by Wednesday, with temperatures approaching 15-20 degrees Fahrenheit above normal in the Northern Plains.
| Rural Advocate News | Monday December 4, 2023 |
USDA Forecasts Lower Ag Exports in FY 2024 America’s agricultural exports in fiscal year 2024 are projected at $169.5 billion, down $2.5 billion from the August forecast. The drop is primarily from reductions in grain and feed as well as livestock, poultry, and dairy exports. Wheat exports are forecast down $800 million to $6 billion on lower unit values and ongoing competition from Russia and the EU. Corn exports are forecast down $500 million to $12.8 billion because of lower unit values as abundant global supplies continue easing prices. Soybean exports are projected $500 million lower to $26 billion on lower exportable supplies. Livestock, poultry, and dairy exports are forecast to drop by $1.3 billion to $36.3 billion due to declines across most products. Beef and pork exports are both projected $300 million lower on tight supplies and lower demand, respectively. Poultry products and dairy will both drop by $200 million due to lower volumes and decreased price competitiveness. *********************************************************************************** Lower Corn Price Pressuring Farmers The University of Illinois Farm Policy News website says the price of corn recently hit a three-year low mark. Supplies from Brazil and the U.S. surged while demand stagnated because of the high prices. Corn has traded around $4.50 a bushel recently after reaching more than $8 a bushel in May 2022. The drop in corn prices was coming after American farmers planted more corn last year in response to the higher prices. The Financial Times says Russia’s invasion of Ukraine sent prices sharply higher last year, as did drought in parts of South America. However, in response to the rising prices, corn demand fell for the first time in ten years, contracting roughly three percent between 2022 and 2023. The extra corn acres in the U.S. didn’t help. A government forecast showed an additional six million acres got planted in the Corn Belt, and yields were higher than anticipated. *********************************************************************************** USDA Provides $208 Million for Emergency Assistance The USDA is providing approximately $208 million in financial assistance for qualifying farm and emergency loan borrowers. To help prevent foreclosures, USDA will cover approximately $80 million in delinquencies for an estimated 210 borrowers whose loans were flagged for liquidation as of November 30. USDA will also provide roughly $128 million for an estimated 1,120 borrowers with outstanding direct Emergency Loans as of November 30. Any distressed borrowers who qualify for this assistance and are currently in bankruptcy will get addressed using the same case-by-case review process announced in October 2022 for complex cases. “We’re working hard every day to keep farmers on their farms,” says Ag Secretary Tom Vilsack. “We continue to work on credit reforms centered around a better approach, and I encourage our lenders and borrowers to capitalize on all available flexibilities.” Borrowers can submit requests in person or by sending a request using portals found on farmers.gov. *********************************************************************************** New Nutritional Campaign Launches on Wheat Consumers want nutrition information, so the Wheat Foods Council launched a social media campaign that educates fitness professionals and trainers about the benefits of wheat foods in healthy diets. U.S. Wheat Associates and the WFC are both farmer-led organizations that promote the value and benefits of U.S. wheat. The new WFC campaign on Facebook and Instagram launched on November 20. It provides evidence-based information on the nutritional and performance advantages of wheat foods. Among those advantages is how wheat foods serve as a reliable and efficient source of energy. The campaign also helps dispel myths about wheat foods and fosters a deeper understanding of the positive impact they have on performance and well-being. “By harnessing the power of social media, the campaign creates a dialogue, encourages knowledge sharing, and inspires a shift in how the fitness industry views wheat foods in a healthy lifestyle,” says WFC President Tim O’Connor. *********************************************************************************** Corn Harvest Quality Report Contains Good News The U.S. Grains Council’s “Corn Harvest Quality Report” shows this year’s crop is the largest on record to have the lowest percentage of broken corn and foreign material in history. The average aggregate quality of the representative samples tested was better than the grade factor requirements for U.S. No. 1 grade. The report also says that 88 percent of the samples met the grade factor requirements for U.S. No. 1 grade, and 96 percent met the grade factor requirements for U.S. No. 2. “The transparency this provides to buyers helps them make informed decisions and takes another step towards developing markets, enabling trade, and improving lives,” says Brent Boydston, USGC Chair. “This crop’s incredible volume allows the U.S. to remain the world’s leading corn exporter, accounting for an estimated 26 percent of global corn exports.” The report is based on 611 yellow corn samples taken from 12 of the top corn states. *********************************************************************************** More Crop Insurance Options in 2024 The USDA is further expanding the opportunities for producers to consider Enterprise Units as risk management options. The Risk Management Agency is expanding Enterprise Unit availability to additional specialty crops and other actual production history crop programs. Together with the six crop types announced in July for Enterprise Unit protection, these crops may benefit from the Enterprise Units that were previously unavailable. Enterprise Units are attractive to producers due to lower premium rates offered to recognize the lower risk associated with the geographic diversification. In general, the larger the Enterprise Unit, the lesser the risk and the greater the unit discount. “This announcement is in response to public feedback of producers needing more options to manage their risk,” says RMA Administrator Marcia Bunger. “It’s critical that while we are examining our resources for areas of improvement we also listen to America’s agricultural producers to hear exactly what they need.”
| Rural Advocate News | Monday December 4, 2023 |
Monday Watch List Markets Back from the weekend, traders will continue to watch over South American weather forecasts. A report of crop production estimates from Stats Canada will be out at 8 a.m. CST, followed by U.S. factory orders for October at 9 a.m. USDA's weekly report of grain export inspections is set for 10 a.m. and there is no Crop Progress report until the 2024 growing season. Weather A couple of little systems are moving through the Northern Plains and Midwest on Monday, producing some limited areas of showers, including a mix with snow in the Northern Plains and Upper Midwest. Accumulations will be negligible. Outside of a couple of chilly spots this morning, temperatures are mild by December standards across most of the country for today.
| Rural Advocate News | Friday December 1, 2023 |
Court Filing on Year-Round E15 in the Midwest Iowa Attorney General Brenna Bird filed a motion for summary judgment regarding the Environmental Protection Agency’s failure to respond to a request to sell year-round E15 in Midwest states. Iowa and six other states filed an opt-out request that would allow them to sell E15. Growth Energy CEO Emily Skor says biofuel leaders have been more than patient. “For over a year past the statutory deadline, they’ve waited for EPA to follow the law and allow them to make E15 available in their states year-round,” she says. “They have been forced to return to court to compel EPA to do something it was required to have done by July 2022.” Skor also says in its continued decision to illegally delay acting on the governors’ request, EPA has cited fuel distribution concerns that are greatly overstated. “It’s a low-carbon fuel that saves consumers money and is better for the environment,” she adds. *********************************************************************************** USDA Releases Farm Sector Income Report USDA’s Economic Research Service released its annual Farm Sector Income Forecast Report for 2023 which shows lower net farm income this year. Ag Secretary Tom Vilsack says while net farm income will drop below the record high in 2022, it’s one of the best years on record for the overall farm sector at $151.1 billion. “In fact, net cash farm income for 2023 is 15 percent above average for the last two decades, and farm income over the 2021-2023 period represents the highest level of farm income in the last 50 years,” he says. “U.S. ag exports have also seen the three highest years on record in 2021-2023, and 2024 is projected to be the fourth-highest year on record despite potential declines.” A bright spot for farmers is that some production costs, including feed, fertilizer, and pesticides, have declined. Data also shows that off-farm income is needed to make ends meet. *********************************************************************************** Farm Bureau Testifies at FMMO Hearing Farm Bureau Chief Economist Roger Cryan testified on behalf of the group’s membership at the Federal Milk Marketing Order Pricing Formula hearing. His testimony underscored the need for updating Class 1 and Class 2 price differentials to bring fairness for farmers back into the Federal Milk Marketing Orders. Class 1 differentials are meant to incentivize the movement of milk to where it’s demanded and assist in maintaining regional production capacity in a manner that provides consumers with consistent access to fresh milk. The Class 2 differential is meant to represent the higher value of Class 2 milk, which is used in dairy products like ice cream, cottage cheese, and sour cream, while Class 4 milk is used in butter and dairy products. “Our proposal is the reduction or elimination of negative producer price differentials and the de-pooling they cause,” Cryan said in his testimony. “An orderly pool is key for orderly marketing.” *********************************************************************************** Ethanol Production Hits Seven-Week Low The Energy Information Administration says ethanol output dropped to its lowest level in seven weeks, and inventories also fell during the seven days ending on November 24. The biofuel production fell to an average of 1.011 million barrels a day during the week, down from 1.023 million barrels a week earlier and the lowest level since October 6. The agency says Midwest production hit 950,000 barrels per day, down 13,000 barrels a day from the previous week. Rocky Mountain output fell to an average of 13,000 barrels a day from 14,000 a week earlier. That was all the losses as East Coast production was unchanged from the previous week at 13,000 barrels a day. Gulf Coast production rose by 1,000 barrels a day to an average of 25,000 barrels, and West Coast output rose from 9,000 to 10,000 barrels a day during the week. Ethanol stockpiles dropped to 21.37 million barrels. *********************************************************************************** Officials Secure Extension of Line Speed Trial for Pork Processing Senators Chuck Grassley (R-IA), Representative Brad Finstad (R-MN), and House Ag Chair Glenn Thompson (R-PA) applauded the USDA’s decision to extend the line speed trial for pork processors. USDA extended the Time-Limited Trial for New Swine Inspection Systems plants but cautioned that the 30-day extension would do little to provide needed clarity for pork producers, who contract with processors many months in advance. The announcement comes after a letter requested Ag Secretary Tom Vilsack issue an extension to ensure that processing plants can continue operating at increased line speeds. “The New Swine Inspection System trial has proven safe and effective at swiftly processing hogs,” Grassley says. “While I’m happy with the extension, USDA risks creating a harmful bottleneck in the pork supply chain if the extension doesn’t go any longer.” House Ag Chair Thompson says, “It’s my hope the department operates transparently to ensure our facilities can maintain full operational capacity.” *********************************************************************************** Producer-Friendly Changes to USDA Programs The USDA has waived certain notice of loss requirements for the 2023 Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) and the Livestock Indemnity Program (LIP). To streamline the access to critical 2023 natural disaster recovery assistance, the Farm Service Agency is waiving the requirement to submit ELAP or LIP notices of loss within a pre-determined number of days for 2023. Instead, producers have the flexibility to submit 2023 notices of loss as soon as possible once losses are realized following a natural disaster event or no later than the established annual program application for payment deadlines for each program. “Our goal is to get producers into those disaster programs, and they are always encouraged to turn in an application if they believe they are eligible,” says FSA Administrator Zach Ducheneaux. “Program improvements work best if we ensure producers have sufficient time and information needed to submit their applications.”
| Rural Advocate News | Friday December 1, 2023 |
Friday Watch List Markets Manufacturing reports arrive overnight from around the world and the Institute of Supply Management's manufacturing index for the U.S. will be released at 9 a.m. CST. At 2 p.m., USDA's NASS releases its monthly Fats and Oils report and grain traders continue to keep a close eye on weather in South America. Weather A storm system is moving through the Midwest on Friday, bringing widespread areas of moderate to heavy rain. More scattered and lighter rain is developing farther south to the Gulf of Mexico, though it could be heavier near the coast. The system does not have a lot of cold air to work with but may bring some mix of snow on its northern edge from southern Iowa through Lower Michigan through tonight. Meanwhile, the Pacific Northwest will continue to see scattered showers for the next week.
| Rural Advocate News | Thursday November 30, 2023 |
Lawmakers Welcome Extension of Line Speed Trial for Pork Processing Facilities A group of Republican lawmakers welcome USADA’s extension for the Time-Limited Trial for New Swine Inspection System. However, they caution that the short 30-day extension would do little to provide needed certainty for pork producers, who contract with processing facilities many months in advance. The announcement comes weeks after Senator Chuck Grassley and Representative Brad Finstad led a bicameral letter requesting USDA Secretary Tom Vilsack issue the extension to ensure participating processing plants can continue operating at increased line speeds. This is the second time USDA has extended the trial at Grassley and Finstad’s urging. Grassley says, “. While I’m pleased that USDA has taken a step in the right direction by extending the program, the agency risks creating a harmful bottleneck in the pork supply chain if it fails to extend the program beyond just three months.” Finstad adds, “I will continue to urge USDA to provide certainty to our pork processors and producers by permanently allowing them to continue functioning at full operational capacity.” *********************************************************************************** USDA Changes Notice of Loss Requirements for Two Livestock Programs The Department of Agriculture has waived certain notice of loss requirements in 2023 for the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish and the Livestock Indemnity Program. In an effort to streamline assistance to support access to critical 2023 natural disaster recovery assistance, USDA’s Farm Service Agency is waiving the requirement to submit Emergency Assistance for Livestock or Livestock Indemnity Program notices of loss within a pre-determined number of days for 2023. Instead, producers have the flexibility to submit 2023 notices of loss as soon as possible, once losses are realized, following a natural disaster event or no later than the established annual program application for payment deadlines for each program. FSA Administrator Zach Ducheneaux says, “Our goal is to get producers into these disaster programs, and they are always encouraged to turn in an application if they believe they are eligible.” Contact your local Farm Service Agency office for more information. *********************************************************************************** Report: Pork exports to China surged During ASF Outbreak The 2018 spread of African swine fever to China had reverberations in the global pork market, according to new data from USDA’s Economic Research Service. ASF caused an estimated loss of 27.9 million metric tons in China's pork output from late 2018 to early 2021 and led to a doubling of China's domestic pork prices. The high prices attracted a surge of pork exports from four major suppliers—the European Union, the United States, Brazil, and Canada. While the EU was the top supplier, U.S. pork exports were sizable and reached a record high of more than 287,000 metric tons in the second quarter of 2020. Official data indicate that China's pork production returned to its pre-ASF level in 2021. While exports to China are down from their peak, China is still one of the top three overseas markets for U.S. pork, with sales in the first six months of 2023 exceeding annual totals posted in years before ASF hit China. *********************************************************************************** NCGA Yield Contest Deadline Extended The National Corn Growers association this week extended the National Corn Yield Contest Harvest Entry deadline to December 5. After considering the unique challenges that growers across the country have faced during the 2023 harvest season, NCGA moved the deadline from November 30. Contest participants can submit a harvest entry from now until 4 p.m. CT on Tuesday, December 5, at ncga.com/ncyc. Entry requirements, yield worksheets, and more information are available on that website. Participants must submit their harvest results to be included in the 2023 rankings. The 2023 National Corn Yield Contest Winner's Announcement will still take place on Wednesday, December 13. The NCGA National Corn Yield Contest has been organized to encourage the development of new, sustainable, and innovative management practices resulting in higher yields and to show the importance of using sound agricultural practices in United States corn production. Entrants must be a producer and member of the National Corn Growers Association. *********************************************************************************** Application Period Opens for Regional Agricultural Promotion Program Agriculture Secretary Tom Vilsack Wednesday announced the Notice of Funding Opportunity for the first tranche of funding under the USDA's new Regional Agricultural Promotion Program. USDA is providing up to $300 million in funding in its first year to support eligible projects that enable exporters to break into new markets and increase market share in growth markets. Secretary Vilsack announced the funding at the President's Export Council, after announcing the establishment of the program in October. The effort is a $1.2 billion program made possible through the Commodity Credit Corporation, which will be made available over five years. Vilsack says, "It takes significant investment to open and develop new export markets and this new fund will be dedicated to helping provide that start-up capital." The funds are available to non-profit U.S. agricultural trade organizations, non-profit state regional trade groups, agricultural cooperatives, and state agencies that conduct approved market development activities. Applications are due in February and more information is available at grants.gov. *********************************************************************************** RFA Partners with Girls Auto Clinic for Ethanol Education The Renewable Fuels Association has partnered with the Girls Auto Clinic to bring ethanol education and promotion to a new and growing audience: women who are actively interested in auto purchasing, maintenance, and repair. Founded in 2013, Girls Auto Clinic builds and provides tools to drive knowledge and engagement to women, or "shecanics," to own their automotive experiences. The organization empowers women to be fully engaged and confident in purchasing and managing their vehicles, while also increasing the presence of women successfully and happily employed within the automotive industry. RFA Vice President for Industry Relations Robert White says, “It's important for all consumers to understand the value of American-made ethanol, as it provides critical cost savings for families and benefits for the climate and the air we breathe.” Girls Auto Clinic CEO and founder Patrice Banks adds, “with RFA's backing, we can extend our reach, empowering more women across the country to become confident drivers and smart consumers."
| Rural Advocate News | Thursday November 30, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be posted at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, reports on U.S. personal income and spending in October, the personal consumption expenditures index for October and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 10 a.m. Weather A storm system is building in the Southern Plains on Thursday, which will bring scattered showers and thunderstorms during the day. The storm system will spread into the Ohio Valley tonight through Friday. Precipitation amounts could be moderate and there is a small risk for accumulating snow on the northern edge of the system from parts of Kansas to Michigan tonight through early Saturday.
| Rural Advocate News | Wednesday November 29, 2023 |
Wednesday Watch List Markets A report on third-quarter U.S. GDP will be out at 7:30 a.m. CST Wednesday. The U.S. Energy Department's weekly inventory report will follow at 9:30 a.m. with an update of ethanol production. Traders continue to keep close watch on South American weather. Weather A warm front is bringing some light snow to the Great Lakes on Wednesday, but also much warmer air than Tuesday to much of the country east of the Rockies. Another cold front will drop south out of Canada tonight, though, with slightly cooler air to follow for Thursday across the north.
| Rural Advocate News | Wednesday November 29, 2023 |
Growth Rate of Ag Output Continues Slowdown In the last decade, the world’s agricultural output grew at an average annual rate of 1.94 percent per year. A USDA report says that’s slower than the 2.74 percent output growth rate over the previous decade and below the average annual rate of 2.3 percent during the last six decades. The slowdown in agricultural growth was primarily tied to a slowing rate of growth in agricultural total factor productivity, or TFP. The world agriculture’s TFP fell to 1.14 percent per year from 2011-2021 compared to 1.93 percent per year during the previous decade. TFP measures the amount of agricultural output produced from the aggregated inputs used in the production process, including land, labor, capital, and material resources. There are four major sources of overall growth, such as bringing more land into production, extending irrigation to land, intensifying capital use, labor, and material inputs per unit of land, and improving TFP. *********************************************************************************** Groups Respond to Small Refinery Exemptions Decision A coalition representing farmers and ethanol producers responded to last week’s decision of the Fifth Circuit Court on Small Refinery Exemptions under the Renewable Fuels Standard. The Court remanded to the Environmental Protection Agency its rejection of six small refinery exemption requests. The coalition that includes the Renewable Fuels Association, Growth Energy, the American Coalition for Ethanol, and the National Farmers Union says they are disappointed by the decision and will continue to defend the Renewable Fuel Standard. “We will continue fighting the illegal abuse of small refinery exemptions,” the groups said in a statement. “As other federal courts have determined, the RFS does not impose an economic burden on oil refiners because any compliance costs are passed down the supply chain.” The groups also say the refiners’ lawsuit wasn’t about economic hardship but more about oil refineries doing everything they could to dodge legal obligations to blend renewable fuels. *********************************************************************************** Grant Applications for Improving School Meals Are Open Applications are now open for the School Food Systems Transformation Challenge Sub-Grants, which is a part of USDA’s Healthy Meals Incentives Initiative. USDA says the grants will transform the K-12 school food marketplace by increasing collaboration between school districts, food producers, suppliers, distributors, and community partners. Students can expect to see improvements in the quality of food on their plates thanks to these new efforts. All eligible applicants are encouraged to consider applying for one or both of the grant opportunities. The first is the Supporting Community Agriculture and Local Education Systems (SCALES) Grant, and the second is Partnerships for Local Agriculture and Nutrition in Schools (PLANTS.) SCALES projects are designed to increase the procurement of locally sourced foods by developing partnerships between schools and producers as well as growers and processors. PLANT projects will support regional efforts to expand scratch-cooked meal programs and create sustainable change for all school districts. *********************************************************************************** Variety Crop Trial Results are Now Available The Minnesota Agricultural Experiment Station and the College of Food, Agricultural, and Natural Resource Sciences have published the 2023 Minnesota Field Crop Trials. Crops included in this year’s trial include barley, canola, corn grain, oats, soybeans, spring wheat, winter rye, and winter wheat. The University of Minnesota field crop trials are done every year to provide unbiased and trustworthy information to help farmers when they are ready to make seed choices. The annual Field Crop Trials are one of the key ways that the University of Minnesota works to bring valuable research into the hands of farmers and ultimately help improve farm profitability, improve the economy, and the overall quality of life for farmers and rural communities. Since the late 1880s, the U of M has published reports of crop variety trials, but it wasn’t until 1948 that the trials were combined into a single annual publication. Go to varietytrials.umn.edu. *********************************************************************************** Export Inspections Decline for Corn, Beans, and Wheat The USDA says inspections of corn, soybeans, and wheat all turned lower during the week ending on November 23. Corn inspections dropped to almost 406,700 metric tons from just over 601,000 a week earlier. That’s still above the 311,700 tons assessed during the same week in 2022. Soybean assessments for export fell to 1.44 million tons from 1.63 million the previous week. That’s well below the 2.3 million tons examined during the same week last year. Wheat inspections dropped to 276,600 tons, down from 366,400 tons during the previous week. It’s also lower than the amount of wheat assessed for export during the same week in 2022. Since the start of the marketing year on September 1, the government has inspected 7.27 million metric tons of corn, down from 5.82 million last year. Soybean inspections are at 17.5 million tons, while wheat assessments are two million lower than last year. *********************************************************************************** USDA Report Shows Full Impact of ASF in China An Economic Research Service report shows the full impact of African Swine Fever in China, and the impact was likely more than Chinese officials reported. The agency’s report investigated how China’s reduced pork supplies affected other pork-exporting countries. The virus moved from Europe to China and spread rapidly throughout the country, leading to a 30-month cycle of decline and recovery between 2018 and 2021. China lost an estimated 27.9 million metric tons of its pork production during that 30-month cycle. Pork prices in China more than doubled, with most of the increase occurring about a year after the initial outbreaks. A total of 31 countries saw surging pork exports to China during the down cycle. Impacts on pork markets outside of China were relatively modest. Increases in pork prices in leading exporters like the U.S., Germany, and Spain, were relatively brief and much smaller than the price increases in China.
| Rural Advocate News | Tuesday November 28, 2023 |
USMCA Panel Limits U.S. Dairy Access in Canada Late last week, a U.S.-Mexico-Canada Agreement dispute panel allowed Canada to continue restricting dairy access that the U.S. negotiated for under the agreement. The action came after an earlier panel ruled in January 2022 that Canada had improperly restricted access to its market for American dairy products. American agriculture leaders and groups reacted negatively to the decision. “It’s profoundly disappointing that the dispute settlement panel chose obstruction rather than facilitation in trade,” says Jim Mulhern, president and CEO of the National Milk Producers Federation. “We urge USDA and the USTR to look at all available options to ensure that Canada stops playing games with trade agreements.” Krysta Harden, president and CEO of the U.S. Dairy Export Council, says this isn’t the only shortcoming in Canada’s international commitments. “We are committed to working with USTR and USDA to address Canada’s harmful actions that help evade USMCA dairy export disciplines,” she says. *********************************************************************************** More Reaction from USMCA Dairy Decision U.S. Trade Representative Katherine Tai said two of the three USMCA dispute panel members found that Canada’s dairy import policies don’t breach its commitments under the U.S.-Mexico-Canada agreement. “I’m very disappointed by the findings in the USMCA panel report on Canada’s dairy TRQ allocation measures,” Tai says. “While the United States won a previous USMCA dispute on Canada’s dairy TRQ allocations, Canada’s revised policies still haven’t fixed the problem for U.S. dairy farmers.” In the dispute panel’s report, it found that Canada’s measures are not inconsistent with the USMCA provisions cited by the U.S. The panel split on the U.S. claims that Canada’s exclusion of retailers, food service operators, and others from eligibility and its historical market share approach to allocating dairy TRQs breach its obligations. House Ag Committee Ranking Member David Scott (D-GA) says, “It’s critical we enforce USMCA as this decision allows Canada to continue with its protectionist practices.” *********************************************************************************** USDA Making Investments in U.S. Food Chains Ag Secretary Tom Vilsack says his agency is making investments to strengthen American food and agriculture supply chains, expand markets for producers, and lower food costs. “We’re using these investments in agricultural producers and rural entrepreneurs to create better economic opportunities that bolster food supply chains across the country and increase competition,” Vilsack says. “This will result in more affordable prices and choices for consumers, as well as more opportunities and revenues for farmers.” USDA is making investments in 185 projects worth nearly $196 million to create new and better market opportunities in states like Arizona, Illinois, New York, 34 other states, and Puerto Rico. Today’s announcement was made as part of the inaugural meeting of the new White House Council on Supply Chain Resilience. The goal is to lower costs for American families and increase investments in American supply chains that are critical to economic and national security. *********************************************************************************** Jury Rules that Egg Producers Conspired to Fix Prices An Illinois jury found that several of the country’s major egg producers conspired to limit America’s supply of eggs in order to raise prices in a case that began in a federal lawsuit 12 years ago. Several large food manufacturing companies in the lawsuit filed in 2011 said producers used various means to limit the U.S. domestic supply of eggs to increase the price of eggs and egg products during the 2000s. “We are incredibly pleased that the jury held egg producers Cal-Maine Foods and Rose Acre Farms accountable alongside United Egg Producers and United States Egg Marketers for conspiring to inflate the price of eggs,” says Brandon Fox, an attorney for the food manufacturers. Damages will be decided during a trial this week. The jury found the egg suppliers exported eggs to reduce the overall supply in the domestic market and limited the number of chickens available for laying eggs. *********************************************************************************** Nominations are Open for USB’s Legacy Award The United Soybean Board announced a call for nominations for the Tom Oswald Legacy Award. In its second year, this award honors the late Tom Oswald, who will always be remembered as a passionate farmer-leader and dedicated volunteer. The award recognizes someone who went above and beyond to move research and promotion investments forward in a conventional way. “Within our soy community, we are fortunate to have leaders who ensure we’re stewarding farmer checkoff dollars to their full potential,” says Meagan Kaiser, USB Chair. “We look forward to getting numerous worthy nominations and eagerly await the opportunity to celebrate an exceptional leader who’s leading the way for a more prosperous and sustainable future for U.S. soy farmers.” If you know an organization, group, or individual that should be recognized for their efforts and passion for the industry, visit the USB website to submit a nomination. Nominations close on January 8, 2024. *********************************************************************************** Farm Bureau Announces Keynote Speaker at 2024 Convention Greg Harden, a best-selling author and former associate athletic director of student counseling at the University of Michigan, will be the keynote speaker at the 2024 Farm Bureau convention. He’ll address attendees during the closing session of the annual convention on Monday, January 22. Harden counseled more than 400 student-athletes, including names like Super Bowl champion Tom Brady, Heisman Trophy winners Desmond Howard and Charles Woodson, and Olympic swimming champion Michael Phelps. “Persistent, patient, and resilient are among the traits that professional athletes share with farmers and ranchers,” says Farm Bureau President Zippy Duvall. “That’s why Greg’s message about coaching and mentorship is so timely.” Duvall also says the lineup for the entire convention is outstanding. In addition to guest speakers and exciting competitions, they’ll host important conversations about top priorities for U.S. agriculture, including the farm bill. The 105th AFBF convention is in Salt Lake City, Utah, January 19-24, 2024.
| Rural Advocate News | Tuesday November 28, 2023 |
Tuesday Watch List Markets There are not many reports Tuesday, but there is a report on U.S. consumer confidence at 9 a.m. CST. Traders continue to closely watch South American weather and could be jumpy after Monday's new lows in corn, wheat and livestock. Weather Cold air moving over the Great Lakes continues to produce lake-effect snow Tuesday, leading to some hefty amounts in some of the more prone areas. The rest of the country will be more quiet. Though it is cold this morning in the Plains, temperatures are forecast to increase significantly this afternoon.
| Rural Advocate News | Monday November 27, 2023 |
Top 5 Things to Watch - Slight Warming and Markets Return to Full Time 1. Ag Summit approaches: We're in full swing on registration for our 2023 DTN Virtual Ag Summit, Dec. 5-6. The two half-day sessions will be packed with quick-to-digest presentations on business-critical topics from changing farmland values to finances, interest rates and global economics. 2. Warming trend: While lake-effect snows will continue around the Great Lakes, The Plains will be turn drier and most of the country will see warmer-than-normal temperatures as El Nino conditions continue to build. For longer-term conditions, don't miss DTN Ag Meteorologist John Baranick's 2024 forecast on Dec. 6 during the DTN Virtual Ag Summit. 3. Volunteers with a view: DTN's Crops Technology Editor Pamela Smith is starting the search for candidates for our annual View From the Cab stories. That highly popular series discusses what's going on in the world of two farm operations, and kicks off just ahead of spring planting. . 4. Watching for awakening markets: As traders come back from the holiday-shortened week, we're watching wheat prices and any surprises from South America. 5. Todd Hultman, will be talking about corn and soybean markets at the Greater Peoria Farm Show through Thursday. Information on that event is here: 5. Economic reports to watch: Monday features a report on new U.S. home sales in October at 9 a.m., followed by USDA's weekly report of grain export inspections at 10 a.m. and Crop Progress at 3 p.m. On Tuesday, we'll watch the U.S. consumer confidence report set for 9 a.m. Then Wednesday sees the report on third-quarter U.S. GDP, out at 7:30 a.m. The U.S. Energy Department's weekly inventory report will be released at 9:30 a.m. Thursday starts with USDA's weekly export sales report, posted at 7:30 a.m., the same time as weekly U.S. jobless claims, reports on U.S. personal income and spending in October, the personal consumption expenditures index for October and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 10 a.m. On Friday, manufacturing reports arrive overnight from around the world and the Institute of Supply Management's index for the U.S. is released at 9 a.m. At 2 p.m., USDA's NASS releases its monthly Fats and Oils report.
| Rural Advocate News | Monday November 27, 2023 |
Monday Watch List Markets Back from the weekend, traders will continue to keep watch over South American weather. A report on new U.S. home sales in October will be out at 9 a.m. CST Monday, followed by USDA's weekly report of grain export inspections at 10 a.m. and Crop Progress at 3 p.m. CFTC data for the week ended Nov. 21 will also be released Monday afternoon. Weather Colder air east of the Rockies is leading to some lake-effect snows around the Great Lakes for Monday. Overnight lows have become especially cold around the snow that fell in the Central and Southern Plains over the holiday weekend. That snow will slowly melt away this week.
| Rural Advocate News | Friday November 24, 2023 |
Most States Saw Growth in Net Farm Income During 2022 The U.S. saw growth of almost 31 percent in net farm income from 2021 through 2022. NFI is a broad measure of farm sector profitability. Researchers with USDA’s Economic Research Service used data from the Farm Income and Wealth Statistics to classify states into six categories of NFI changes. The five agricultural states with the highest NFI include Texas, which had the highest NFI growth at 65 percent from 2021 to 2022, followed by Minnesota at 55.7 percent. Growth in the remaining top five states, including California, Iowa, and Illinois was also strong. Other states among the top 25 for average NFI had a wide range of NFI changes from 2021 to 2022. Many showed strong growth, such as Idaho at 116 percent, Georgia at 104 percent, Florida at just over 100 percent, and North Dakota at 76 percent. However, Kansas and Washington NFI fell 23 and 28 percent, respectively. *********************************************************************************** Study Proves U.S. Corn Superiority The U.S. Grains Council released its second annual Corn Origins Report, which explores the performance of U.S. corn against corn from other countries in poultry diets. U.S., Argentinian, and Brazilian corn samples were collected from an international feed company in Colombia for use in the study. The study found that birds fed diets with U.S. corn consumed less feed throughout the entire grow-out phase compared to those fed Argentinian or Brazilian corn. The lower feed conversion rates in the poultry fed U.S. corn translated into significant long-term cost savings. Depending upon the number of poultry produced, the savings could be very large. The study was done to address customer concerns about the fragility of U.S. corn and the breakage occurring during the export process. “We found that U.S. corn, despite its fragility, outperforms other origins in terms of digestible starch,” says Kurt Schultz, senior director of Global Strategies for USGC. *********************************************************************************** Horizon Organic Suspends Milk from Texas Farm Danone’s (DA-nun’s) Horizon Organic brand says it has suspended all sourcing of milk from Texas supplier Lone Star Organic Dairy. The move comes after People for the Ethical Treatment of Animals released a whistleblower’s report appearing to show animal suffering and deaths at the operation. PETA shared its findings with USDA and asked the agency to investigate Lone Star Organic Dairy and revoke its organic qualification for any violations that it confirms. Agriculture Dive says Horizon Organic is the second big dairy brand to be hit by animal abuse allegations in the last several months. Tyler Holm, general manager of Horizon Organic, says, “We are deeply disturbed to see the videos and photos shared by PETA. The care and welfare of cows are a critical part of our company and brand values. We take these allegations seriously.” Danone didn’t say what percentage of milk that Lone Star Contributes to the Horizon brand. *********************************************************************************** Minneapolis Fed Releases Third Quarter Survey Results Heading into harvest in the Minneapolis Federal Reserve Banks’ District, farmers faced lower incomes because of falling commodity prices and rising production costs. A third-quarter survey of ag bankers showed that while incomes fell, the decline wasn’t uniform. Districtwide, 46 percent of agricultural lenders said incomes dropped in the third quarter from a year earlier, up from 35 percent in the second quarter. More than a third of the bankers said farm household spending increased, while slightly more than half reported no change. Capital spending also dropped as 35 percent of the bankers saw decreased investment in equipment and buildings from a year ago, compared to 21 percent who reported increased spending. “Interest rates are slowing down borrowing and capital purchases as cash flows are under more stress,” a Minnesota banker reported. Farm finances remained in good condition despite the negative hit to income. Loan repayment rate held steady. *********************************************************************************** Deere Fourth-Quarter Sales Drop Slightly Deere & Co. sales in the fourth quarter of fiscal year 2023 fell year-over-year, though the earnings per share did increase. The company says in a report that revenue in the three months ending on September 30 was reported at $15.41 billion, one percent lower than the same quarter last year. The equipment manufacturer also says earnings rose to $8.26 a share from $7.44 a year earlier. Production and precision agriculture sales in the fourth quarter fell six percent to $6.97 billion. Small agriculture and turf revenue was down 13 percent year-over-year to $3.09 billion, and construction and forestry sales rose 11 percent to $3.74 billion. “Production and precision agriculture sales decreased in the fourth quarter due to lower shipment volumes partially offset by price realization,” Deere says. Full-year sales for Deere jumped 16 percent to $61.25 billion, while earnings came in at $34.63 a share versus $23.28 a year earlier. *********************************************************************************** NCGA, BASF Announce 16th Annual Scholarship Program The National Corn Growers Association and BASF have partnered for another year to provide scholarships to undergraduate students passionate about agriculture. Over the past sixteen years, more than 80 undergraduate students have received scholarship funds to aid them in pursuing higher education. “BASF has been a long-standing partner in support of this program, and we are grateful for the commitment to building up the next generation of leaders in our industry,” says Dan Nerud, chair of NCGA’s Member and Consumer Engagement Action Team. “Our grower members are passionate about this program, and we are excited for another year of supporting students who share our passion for agriculture.” The William C. Berg Academic Excellence Undergraduate Scholarship is open to NCGA members and their children pursuing an undergraduate degree in any field. A completed application must be submitted by January 31, 2024. Scholarships are for one year, and previous recipients may not apply.
| Rural Advocate News | Friday November 24, 2023 |
Friday Watch List Markets USDA's weekly export sales report will be posted at 7:30 a.m. CST on Black Friday, a day known more for store bargains and football games. U.S. grain and livestock futures commence trading at 8:30 a.m. for a short holiday session that has most grain and livestock contracts closed by 12:05 p.m. South American weather will remain the focus for any traders of corn and soybeans that show up for work. Weather A cold front continues to sag south through the country Friday, bringing in a burst of seasonably cold air. In the cold, snow has developed in the central Rockies and Central Plains, which continues Friday. Some bursts and streaks of heavier snow will be possible going into the weekend in these areas.
| Rural Advocate News | Wednesday November 22, 2023 |
Groups Express Concern About Disaster Relief Changes The National Corn Growers and 16 state-affiliated associations joined more than 140 allied national, regional, and state commodity organizations opposing changes to USDA disaster relief. The groups sent a letter to Ag Secretary Tom Vilsack relaying their concerns with the design of the Emergency Relief Program for 2022. While the group showed appreciation for the allocation of $3.74 billion in much-needed ERP assistance, the groups expressed serious concerns with changes. The biggest change is a “progressive factor” that reduces the disaster assistance for many eligible growers based on the size of the losses. USDA also changed the method used to incorporate producer-paid insurance premiums. “In the case of the progressive payment factor, we oppose a policy that delivers the least amount of benefit to those who have lost the most outside of the payment limits provided in the statute,” the letter says. “Support should be equitable for losses of all magnitudes.” *********************************************************************************** Cattle on Feed Up Two Percent The USDA’s November 1 Cattle on Feed Report says cattle numbers were two percent higher than the previous report. Cattle and calves on feed for the slaughter market in feedlots with a capacity of 1,000 or more head totaled 1.19 million head on November 1, 2023. That inventory total was two percent higher than on November 1, 2022. Placements in feedlots during October totaled 2.16 million head, four percent higher than in 2022. Net placements were 2.11 million head. During October, placements of cattle and calves weighing less than 600 pounds hit 550,000 head, 600-699 pounds totaled 470,000 head, 700-799 pounds were 465,000 head, and 800-899 pounds were 394,000 head. Cattle weighing 900-999 pounds totaled 205,000 head, and 1,000 pounds and greater were 80,000 head. Fed cattle marketings during October totaled 1.76 million head, three percent lower than in 2022. Other disappearances totaled 55,000 head, two percent higher than last year. *********************************************************************************** Strengthening Agriculture’s Talent Pipeline Agriculture Future of America and the National FFA Organization made their partnership official. The groups signed a Memorandum of Understanding during AFA’s Leaders Conference in November. The MOU cements the bond that existed between the two groups and underscores a shared commitment to developing and empowering the next generation of leaders. “AFA and FFA have similar goals and values regarding the role of school-based agricultural education,” says Scott Stump, CEO of the National FFA Organization. One of the primary objectives of this partnership is to create a seamless pathway for young individuals who are passionate about agriculture to transition from FFA to AFA. By doing so, they’ll get access to a wide array of leadership development opportunities, scholarships, internships, membership programs, and job opportunities. FFA and AFA also intend to collaborate on various projects and initiatives that promote agricultural education and leadership, including the chance to interact with experienced professionals *********************************************************************************** Partnership to Create Jobs and Growth in Rural America USDA Deputy Secretary Xochitl (zo-CHEEL) Torres Small announced that the agency is strengthening a longstanding partnership with the Small Business Administration. The goal is to create jobs and expand access to new and better market opportunities for people in rural America. “We’re redoubling our commitment to drive economic security and prosperity for people in rural America, so they can find opportunities to succeed right in the places they call home,” Torres Small says. “Strengthening our collaboration with the SBA helps us expand these opportunities for people to build brighter futures for generations to come.” The agencies are committing to increase investments in small and underserved communities to help grow the rural economy. They may also work together to provide joint trainings, technical assistance, and mentorship opportunities for rural small business owners and entrepreneurs. They may also help producers and small businesses identify ways to export their products around the world. *********************************************************************************** Dairy FARM Program Announces Excellence Award Winners The National Dairy Farmers Assuring Responsible Management (FARM) Program announced the winners of the third annual FARM Excellence Awards. The FARM Program recognized three farms and one evaluator who go above and beyond industry standards through their commitment to innovation and improvement. The 2023 Excellence Award winners are Ingleside Dairy Farm of Virginia and Newmont Farm in Vermont, and Jim Kaufman of AMPI was named the Evaluator Award winner. The FARM Excellence Award for Environmental Stewardship was awarded to a Dairy Farmers of America farm that wished to remain unnamed. “The FARM Program would not be able to demonstrate the high quality of U.S. dairy without the dedication of our producers and evaluators,” says FARM Program Executive Director Emily Stepp. Winners were announced on November 14 at the Joint Annual Meeting of the National Dairy Promotion and Research Board, the National Milk Producers Federation, and the United Dairy Industry Association. *********************************************************************************** Montana Singer to Perform National Anthem at CattleCon24 The winner of the 11th annual NCBA National Anthem Contest is Anna Sponheim of Winfred, Montana. Sponheim will sing the “Star-Spangled Banner” at CattleCon24 in Orlando, Florida, during the Opening General Session. “I’m elated and grateful to win this contest,” says Sponheim. “I may have been chosen, but this is a win for Montana and everyone who supported me. I hope I can do them proud.” Sponheim grew up helping her family grow wheat, barley, hay, and peas, and raise Black Angus Cows near the Upper Missouri River Basin. After graduating from Montana State University with degrees in agricultural communications and writing, she joined the staff at the Montana Beef Council. “I count it a good day when I can talk to people about the beef industry, the nutrients beef provides, and the positive impact producers have on the environment,” Sponheim adds. For more information or to register, go to convention.ncba.org.
| Rural Advocate News | Wednesday November 22, 2023 |
Wednesday Watch List Markets U.S. weekly jobless claims and durable goods orders for October are set for 7:30 a.m. CST Wednesday. At 9:30 a.m., the U.S. Energy Department's weekly inventory report will be released, followed by natural gas storage at 10 a.m. and USDA's monthly cold storage report at 2 p.m. South American weather continues to get a lot of attention. U.S. grain and livestock futures have normal closes Wednesday, are closed Thursday for Thanksgiving and start again at 8:30 a.m. Friday morning for a short session, in which most contracts close at 12:05 p.m. Weather A system continues to push off the East Coast on Wednesday morning, where some areas of accumulating snow occurred in the Northeast. Another cold front is slipping south through the Canadian Prairies and will press through the Northern Plains and Upper Midwest throughout the day. Behind it, precipitation will develop in the northern Rockies and adjacent areas of the Northern Plains and Pacific Northwest, which will amount to accumulating snow tonight into Thanksgiving Day.
| Rural Advocate News | Tuesday November 21, 2023 |
Tuesday Watch List Markets Traders will remain focused on South American weather and are straining for forecasts after this week. A report on U.S. existing home sales in October will be out at 9 a.m. CST. Minutes from the latest FOMC meeting are set for 1 p.m. Weather A storm system continues to move through the eastern half of the country Tuesday, bringing widespread moderate-to-heavy showers for the Great Lakes down to the Southeast and points eastward. This is mostly occurring as rain, but there is some wintry mix over Michigan and parts of the Northeast will see a mix as well. Winds are a little breezy with this system, too.
| Rural Advocate News | Monday November 20, 2023 |
Survey Reveals Importance of AM Radio The agricultural industry has been one of the biggest supporters of the “AM for Every Vehicle Act” since its introduction. Radio Ink says the industry has spending power of more than $576 billion spread across millions of workers. MRI-Simmons, the leading study of American consumer attitudes and behaviors, explored the media choices of agricultural workers. Those workers are big audio consumers, with more than half qualifying as heavy listeners. They listen to audio 60 percent more than the internet and 51 percent more than television. At the other end of the media spectrum, close to half of all ag workers fall into the light user category for internet and TV and outnumber the heavy users. Eight in 10 ag workers favor AM/FM and tune into radio, ahead of streaming audio, podcasts, and satellite radio. The heavy audio usage is likely because of the fact that it’s an “everywhere” media with easy access. *********************************************************************************** Credit Conditions Soften with Farm Economy Agricultural credit conditions in the Kansas City Fed’s Tenth District softened during the third quarter of 2023. Farm income and loan repayment rates were lower than a year ago for the second straight quarter. The moderation was more pronounced in areas hit hardest by drought, but more tempered in areas most concentrated in cattle production. Conditions have weakened slightly following two years of significant improvement that continued to support loan performance. Despite softening farm finances and substantially higher interest rates, agricultural real estate values in the region remained firm. The ag economy has softened in recent quarters alongside a moderation in commodity prices. Together with elevated production costs, a drop in the price of many key products during the past year has likely reduced farm income in 2023. Despite softening incomes with high-interest costs, ag loan performance has remained solid with ongoing support from strong finances during the past two years. *********************************************************************************** Irrigators Invited to Respond to Irrigation, Water Management Survey The USDA’s National Agricultural Statistics Service mailed survey codes to a selected sample of irrigators across 50 states with an invitation to respond to the 2023 Irrigation and Water Management Survey. The survey is a special study with the 2022 Census of Agriculture and provides the only comprehensive dataset of irrigation activities and water use across American farms, ranches, and horticultural operations. Producer input will aid USDA’s efforts to promote efficient irrigation practices and long-term sustainability of water resources across the U.S. The survey will be mailed in phases, with paper questionnaires following in January. Producers only need to respond once, either online or by mail. All responses are due by February 15, 2024. “Water is arguably the most important resource for agriculture and horticulture operations,” says NASS Administrator Hubert Hamer. “This survey is an opportunity to provide data that will influence policy decisions and impact the industry for years.” *********************************************************************************** American Lamb Board Seats Two New Members The USDA appointed five board members to the American Lamb Board who will contribute their expertise to advance the American Lamb industry. The board members begin their three-year terms in January 2024 and conclude in January 2027 and bring a wealth of experience and diverse perspectives to the industry. One new members is Steve Breeding of Seaford, Delaware, a producer with 100 or fewer head. Catherine Harper of Eaton, Colorado, is the other new member and a feeder with less than 5,000 head. “While there are a lot of sheep and lambs grown west of the Mississippi, there is also a lot on the east coast that people don’t always remember,” Breeding says. “I’m looking forward to collaborating with that group and putting the East Coast on the map.” Harper is a 26-year-old from Colorado who runs 3,500 sheep of her own in addition to the feedlot her family runs. *********************************************************************************** Challenge Ahead for Deere Patent Lawsuit Ruling Kinze Manufacturing says while it can’t comment on ongoing litigation, the company did say that a jury in the Southern District of Iowa issued a verdict it doesn’t agree with. The jury found that the True Speed and Sure Speed systems infringe on certain Deere and Company patents. Kinze and Ag Leader say they “strongly disagree” with the verdict and intend to pursue their rights to challenge the verdict. An Iowa jury returned a verdict on October 30 that found Kinze and Ag Leader had infringed on several John Deere patents regarding True Speed/Sure Speed technology. The jury sided with Deere on four claims of patent infringement but found that Deere didn’t prove the infringements were willful. Additionally, the jury found that Kinze and Ag Leader’s countersuit did not prove any of Deere’s asserted claims were invalid. The jury said Deere was entitled to over $14 million in royalty compensation. *********************************************************************************** Survey Discovers Top Thanksgiving Leftovers Pumpkin pie, turkey, gravy, sweet potatoes, and green bean casserole are some of the time-honored foods found at most Thanksgiving tables. But a survey shows those are also some of the top day-after sandwich items. A Harris Poll survey did a deep dive into America’s favorite Thanksgiving leftover sandwich. More than 94 percent of the respondents dine on a Thanksgiving leftover sandwich. Stapes like gravy (42 percent), ham (41 percent), and stuffing (39 percent) trailed turkey (81 percent) as the most popular items that belong on a Thanksgiving leftover sandwich. Pumpkin pie-filled sandwiches were a must-have ingredient in a leftover sandwich for 11 percent of the respondents. Americans also love adding hot dish leftovers into their post-Thanksgiving sandwiches, with Mac and Cheese (21 percent), Green Bean Casserole (14 percent), corn casserole (10 percent), and broccoli casserole (nine percent) reported by survey participants. White bread (20 percent) was the bread winner for sandwiches.
| Rural Advocate News | Monday November 20, 2023 |
Top 5 Things to Watch - Give Thanks During a Shortened Week 1. Short markets week for Thanksgiving: As we gather stories for the week, families will gather across the country to give thanks for the year that was 2023. We hope it has been a positive year for our readers and their families, despite the many challenges the year brought. DTN's holiday coverage schedule will look like this: Wednesday markets open and close as normal, we'll have normal Closing Market Video and Six Factor strategies updates for DTN subscribers. Thursday, U.S. markets are closed, but Canadian markets are open so DTN Canadian Analyst Cliff Jamieson will still have some market updates. On Friday, grain and livestock futures markets open at 8:30 a.m.; we will carry Early Word Grains and Before the Bell grains comments that morning ahead of the opening. Most grain and livestock futures markets will close at 12:30 p.m. We will not have a Closing Markets video that afternoon, and the CFTC will not release updated position data until Nov. 27. 2. Reminder on Ag Summit: There is still plenty of time to sign up for the 2023 DTN Virtual Ag Summit, Dec. 5-6. We'll have sessions on a number of business-critical topics from interest rates, changing farmland values and global economics. 3. Holiday cold snap: Rain systems during the Nov. 18 weekend will bring colder air in for the holiday and the following weekend. DTN Ag Meteorologist John Baranick notes that temperatures may reach even lower than current estimates. He adds the dip will likely hold through the first days of December, but then temperatures should be milder. El Nino usually means a mild December in the U.S., and Baranick says weather models have a very "El Nino look" to them, at least through mid month. That's not good news for winter wheat. 4. Eyes on South America: Traders continue to watch weather and crop conditions in South America, particularly Brazil. Conditions there are expected to be wetter in the south, drier in northern states. Argentina has seen inconsistent rainfall of late but is still in much better shape than 2022. 5. Economic reports to watch: Monday -- The index of U.S. leading indicators will be out at 9 a.m., followed by USDA's weekly report of grain export inspections at 10 a.m. and Crop Progress at 3 p.m. On Tuesday the report on U.S. existing home sales in October will be out at 9 a.m. Minutes from the latest FOMC meeting will be revealed at 1 p.m. On Wednesday, U.S weekly jobless claims and durable goods orders for October come out at 7:30 a.m. At 9:30 a.m., the U.S. Energy Department's weekly inventory report will be released, followed by natural gas storage at 10 a.m. and USDA's monthly cold storage report at 2 p.m. On Thursday, U.S. futures markets are closed for Thanksgiving. On the shortened market day Friday, we'll see USDA weekly export sales posted at 7:30 a.m.
| Rural Advocate News | Monday November 20, 2023 |
Monday Watch List Markets Back from the weekend, traders will continue to keep watch over South American weather. The index of U.S. leading indicators will be out at 9 a.m. CST Monday, followed by USDA's weekly report of grain export inspections at 10 a.m. and Crop Progress at 3 p.m. Weather A storm system moved into the Plains on Sunday and will continue to develop and move east Monday. It will spread showers through much of the middle of the country today, including a risk of severe weather in the Lower Mississippi Valley where rain is most welcome.
| Rural Advocate News | Friday November 17, 2023 |
USDA Announces Release Details for 2022 Census of Ag The USDA’s National Agricultural Statistics Service will release the 2022 Census of Agriculture data on February 13, 2024. NASS concluded the data collection during the summer with a preliminary national return rate of 61 percent. “On behalf of everyone at USDA, I’d like to thank the millions of producers who gave their time and effort to complete the 2022 Census of Agriculture,” says NASS Administrator Hubert Hamer. “Ag census data will inform decisions about policy, farm and conservation programs, rural development, research, technology development, ag education, and more during the next several years.” He also says the data will have a very real impact on producers, their farming operations, and communities. The ag census data will be available at nass.usda.gov and in the NASS searchable database. Like all NASS data, ag census data will only be available in aggregate form, ensuring that no individual operation or producer can be identified. *********************************************************************************** Consumer Report Highlights Thanksgiving Meal Plans Approximately 79 percent of Americans are gearing up for a Thanksgiving meal next week. Purdue University’s Consumer Food Insights says among that crowd, 37 percent plan to host the meal, 43 percent have chosen to attend, and the rest plan to dine out during the holiday. Turkey prices are 10-15 percent lower than last year. However, people are still bracing for higher prices and planning to budget even more for this year’s meal. The report explores consumer food behaviors for the upcoming holiday across different U.S. regions. While turkey is planned to be the centerpiece nationwide, each region has its own traditions. The South is more likely to serve macaroni and cheese, cornbread, and ham. Meanwhile, pies seem to be a stronger tradition in the Midwest. Many consumers attending or hosting Thanksgiving believe travel costs to get to their preferred destination will be higher this year compared to last year. *********************************************************************************** USDA Says Farm Share of Food Dollar Dipped Further in 2022 America’s farms received 14.9 cents per dollar spent on domestically produced food in 2022 as compensation for farm commodity production. This portion called the farmer’s share is a decrease of 0.3 cents from a revised 15.2 cents in 2021. The farm share covers operating expenses and input costs from non-farm establishments. The remaining portion of the U.S. food dollar is called the marketing share, which covers the costs of getting domestically produced food from farms to points of purchase. That includes the costs of transportation, processing, and selling to consumers. One of the factors behind the long-term downward trend in the farm share is an increasing proportion of food-away-from-home spending. Farms get a lower portion of dollars spent on food away from home because of the added costs of preparing and serving meals. The Economic Research Service uses input-output analysis to calculate the farm and marketing shares of a food dollar. *********************************************************************************** National Sorghum Producers Announce New Executive Director National Sorghum Producers is pleased to announce the hire of Greg Ruehle as its new Executive Director. Ruehle brings a wealth of experience in agriculture and association management to his new role. His leadership comes at a pivotal time as NSP continues to grow and expand its impact on the sorghum industry. He was raised on a diversified grain and livestock farm in northwest Iowa. “We are thrilled to welcome Greg as the new NSP Executive Director,” says NSP CEO Tim Lust. “As our association continues to grow and with the expansion of the Partnerships for the Climate-Smart Commodities grant, we are stepping up expanded leadership in our organization.” He’s a past president and CEO for the Independent Professional Seed Association, the Nebraska Cattlemen, and ServiTech, Inc. “Sorghum’s time has definitely come,” Ruehle says. “From water conservation to reduced GHG emissions, sorghum has an expanding role to play, and I’m excited.” *********************************************************************************** Nominations Open for Animal Agriculture Water Quality Committee The Environmental Protection Agency published a Federal Register Notice on November 16 establishing the Animal Agriculture Water Quality subcommittee. It’s under the umbrella of the Farm, Ranch, and Rural Communities Federal Advisory Committee. Nominations are open for members who want to serve on the AAWQ subcommittee. The primary subcommittee goal will be to develop recommendations that will inform the Agency’s decisions regarding how to improve the implementation of the National Pollutant Discharge Elimination System’s (NPDES) Concentrated Animal Feeding Operation permitting program. That program is designed to reduce nutrients and other types of water pollutants more effectively from Animal Feeding Operations. EPA says it’s committed to working with stakeholders, advocates, communities, and industry to explore how to achieve water quality improvements related to CAFOs. The EPA is accepting subcommittee nominations until January 2, 2024. The agency welcomes nominations from a diverse range of qualified candidates for appointment to serve on the subcommittee. *********************************************************************************** USDA Scheduling 2024 Trade Missions Ag Secretary Tom Vilsack released the next steps in the Department’s efforts to bolster U.S. ag trade, including the agency’s planned trade missions for 2024. Ag exports totaled a record $196 billion in 2022 following a record-setting year in 2021. USDA plans to build on recent successes and highlight export opportunities in additional markets through a robust agribusiness trade mission schedule next year. USDA will lead trade missions to several markets, including Seoul, Korea; New Delhi, India; Vancouver, Canada; Bogota, Colombia; Hanoi and Ho Chi Minh City in Vietnam; and Casablanca, Morocco. In addition, Vilsack announced a public comment period for the new Regional Agricultural Promotion Program. Combined, these efforts will help support further growth in U.S. agricultural exports and introduce high-quality U.S. agricultural products to new markets. “Market diversification is an important tool for maximizing growth opportunities for U.S. agriculture, as well as hedging the risk of market contraction,” Vilsack says.
| Rural Advocate News | Friday November 17, 2023 |
WOTUS Lawsuits Restart in Fed Courts - States, Ag Groups Wage Fight Against Amended WOTUS Rule in Federal Courts LINCOLN, Neb. (DTN) -- A total of 26 states and a group of agriculture interests have renewed the legal fight against the Biden administration's Waters of the United States (WOTUS) rule, filing amended complaints in federal courts this week aimed at an amended rule finalized in September. The renewed legal fight is playing out in federal courts in Texas and North Dakota. After the Supreme Court ruled against EPA in Sackett v. EPA earlier this year, President Joe Biden's administration finalized an amended rule on Sept. 8, 2023, that removed the use of the significant-nexus test in making Clean Water Act (CWA)determinations -- without conducting a public comment period. NO PUBLIC COMMENT PERIOD PROVIDED The states argue in an amended complaint filed Monday in the U.S. District Court for the District of North Dakota, that EPA committed several violations of the Administrative Procedure Act, including not providing a public comment period before releasing the amended final rule. The states are Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming. Two other states, Texas and Idaho, have filed a separate amended complaint in the U.S. District Court for the Southern District of Texas. The states also argue the amended rule violates the Clean Water Act and the Constitution, asking the court to vacate the rule and send it back to the EPA. "The amended final rule, that is the final rule as modified by the conforming rule, remains riddled with problems," the states said in the complaint. NO REASONABLE CONNECTION The states said the rule includes waters with "no reasonable connection to navigable waters" and is arbitrary and capricious "because, among many things, it embraces vague standards with little justification and minimal consideration of costs." The initial lawsuit filed in February asked the court to throw out the Biden rule, claiming the EPA and U.S. Army Corps of Engineers "toppled the cooperative federalism regime" by implementing a rule that is "overbroad and hopelessly vague." That initial lawsuit resulted in an injunction against the rule's enforcement in the 24 states. "Meanwhile, if the amended final rule is left in place, then ranchers, farmers, miners, homebuilders and other landowners across the country will struggle to undertake even the simplest of activities on their own property without fear of drawing the ire of the federal government," the states said in the new complaint. "Landowning Americans of all stripes will thus be left with a choice: fight their way through an expensive and lengthy administrative process to obtain complex jurisdictional determinations and permits or face substantial civil and criminal penalties. The amended final rule's ambiguous environmental benefits do not justify any of this." Two state-level agriculture groups in North Dakota, including the Cass County Farm Bureau and North Dakota Farm Bureau, that intervened in the case on behalf of the states also filed an amended complaint this week. "The amended rule failed, however, to address numerous other significant flaws in the 2023 rule," the ag groups said in their complaint. The ag groups pointed to one example of a problem in the amended rule. WOTUS DEFINITION The definition of WOTUS applies the relatively permanent standard to tributaries to traditional navigable waters, the territorial seas, interstate waters or impoundments of WOTUS, intrastate lakes and ponds, streams, or wetlands, and wetlands adjacent to and with a continuous surface connection to relatively permanent impoundments, and wetlands adjacent to tributaries that meet the relatively permanent standard. Texas and Idaho, as well as a group of agriculture interest groups, have filed their amended complaints against EPA in lawsuits that were first filed in January 2023. In an amended complaint filed by Texas and Idaho in the U.S. District Court for the District of Southern Texas in Galveston, the states allege the EPA promulgated the final amended rule without allowing public comment. "They used the Sackett opinion to justify depriving the public and plaintiffs of notice and the opportunity to comment on a rule with nationwide importance," according to the Texas and Idaho complaint. Leading up to the drafting of the Biden rule, ag groups and others asked the administration to hold off on the rulemaking until the Supreme Court ruled on the Sackett case. "The amended 2023 rule maintains the ambiguity of the 2023 rule, leaving those wishing to identify the ambit of federal power over dry land or minor water features at the mercy of an expensive, vague and arbitrary analysis, lest they face a staggering criminal or civil penalty," the states said. OTHER INTEREST GROUPS Also filing an amended complaint in the Texas court was a group of 18 interest groups from the agriculture, oil and housing industries. The American Farm Bureau Federation is joined in the amended lawsuit by the National Cattlemen's Beef Association, National Corn Growers Association, National Pork Producers Council, Matagorda County Farm Bureau, Public Lands Council, Texas Farm Bureau and U.S. Poultry and Egg Association, as well as the American Petroleum Institute. They have asked the Texas court to declare the amended rule unlawful. "The amended rule fails to remedy the vagueness concerns in the 2023 rule, and thus imposes impossible and unpredictable burdens on landowners, users and purchasers," the groups said. "It requires them to assess not only their own land but also vast expanses of land beyond their own holdings, using multiple vaguely defined connections to potentially remote features, in an effort to determine if their land is regulated under the CWA. The consequence is a sweeping and unwieldy regulation that leaves the identification of jurisdictional waters so opaque, uncertain and all-encompassing that plaintiffs and their members and clients cannot determine whether and when the most basic activities undertaken on land will subject them to drastic criminal and civil penalties."
| Rural Advocate News | Friday November 17, 2023 |
Friday Watch List Markets Traders remain highly interested in South American weather. A report on U.S. housing starts for October is due out at 7:30 a.m. CST Friday. USDA's monthly Cattle on Feed report for Nov. 1 is set for 2 p.m. Cattle traders have been anxious ever since the October report showed higher-than-expected placements. A 7% increase in placements from a year ago is anticipated in Friday's report. Weather A cold front continues to race through the central and eastern parts of the country Friday, providing some rain to the Eastern Corn Belt and sending temperatures back to normal briefly. We will see them perk up this weekend ahead of a pattern-changing system that is now off the coast of California.
| Rural Advocate News | Thursday November 16, 2023 |
Cost of Thanksgiving Dinner Drops Slightly This year’s Thanksgiving Day dinner won’t be as hard on the checkbook as it was in 2022. However, the meal will still reflect historically high costs. The American Farm Bureau Federation’s 38th annual survey provides a snapshot of the average costs of this year’s holiday feast for 10, which is $61.17 or less than $6.20 per person. This is a 4.5 percent decrease from last year’s record-high of $64.05, but a Thanksgiving meal is still 25 percent higher than in 2019. The centerpiece of a traditional meal is turkey, which helped bring down the overall cost. A 16-pound turkey averages $27.35 or $1.71 per pound, down 5.6 percent from 2022. Cranberries took the sharpest drop as a 12-ounce bag averages $2.10, down 18 percent from last year. The cost for a classic meal was cheapest in the Midwest at $58.66. The Northeast was the most expensive at a cost of $88.43. *********************************************************************************** Groups Applaud House Passing Farm Bill Extension Competitive Markets Action and the Organization for Competitive Markets applauded the House of Representatives for passing H.R. 6363, which included a one-year extension of the current farm bill. “We applaud Speaker Mike Johnson and House leadership for swiftly passing the bill by an overwhelming margin in the chamber closest to the American people,” says Marty Irby, president of Competitive Markets Action. “We are grateful to Ag Committee Chair Glenn ‘G.T.’ Thompson for securing an extension of the farm bill through the Fall of 2024.” They also say the maneuver offers ample time and opportunity to get the job done right. “We also hope House and Senate leaders will produce a new farm bill that brings clarity to the marketplace by preventing the nullification of countless state and local agriculture laws that some legislators are seeking to wipe out,” Irby adds. “We’re hoping to bring significant reform to USDA’s commodity checkoff programs.” *********************************************************************************** USDA Investing in Support for Beginning Farmers and Ranchers USDA’s Deputy Secretary Xochitl (zo-CHEEL) Torres Small announced the agency is investing $27.9 million across 45 organizations that teach and train beginning farmers and ranchers, including veterans. “The next generation of farmers and ranchers hold the promise for the future of American agriculture and rural prosperity,” says Torres Small. “We’re providing our newest producers with the support they need to succeed and the educational resources to guide their operations on the path toward long-term sustainability and profitability.” The investment is part of the National Institute of Food and Agriculture’s Beginning Farmer and Rancher Development Program which supports a wide range of professional development activities and topics, such as managing capital, acquiring and managing land, and learning effective business and farming practices. As the average age of U.S. producers continues increasing, Torres Small says the agency is accelerating efforts to provide meaningful support to a large number of upcoming farmers and ranchers. *********************************************************************************** CoBank: Grain Storage Outlook Improves The profit outlook for U.S. grain elevators storing corn and soybeans has improved significantly for the 2023-2024 marketing year with buy basis falling and carries returning to the futures markets. The world market is currently awash in grains, and CoBank says global supplies of corn and soybeans are abundant. The current challenge for grain elevators is simply getting ownership of bushels. Farmers have been reluctant to sell as corn and soybean prices are down sharply from their peaks early in the year. A new report from CoBank says the challenge of getting bushels should begin slowing in early 2024. The rising cost environment will likely compel farmers to begin selling in January, February, and March 2024 to generate cash ahead of next spring’s planting and operating expenses. “Higher land rents and borrowing costs combined with rising input prices will likely compel farmers to sell in 2024,” says Tanner Ehmke of CoBank. *********************************************************************************** Dairy’s Long-Term Outlook is Bright The future of America’s dairy farming is bright as global growth and American production capacity and innovation combine to create a “powerhouse.” Gregg Doud is the incoming president and CEO of the National Milk Producers Federation. “In terms of the protein world, dairy is a huge part of the future,” Doud says. “As a former Chief Agricultural Negotiator for the U.S. Trade Representative, I can tell you the opportunities are there for U.S. dairy’s taking with robust outreach and appeals to the world’s consumers.” Doud made his remarks during the NMPF’s annual meeting in Florida. During the past year, America’s dairy producers faced operating margins at their lowest since the federal dairy safety net was adopted in its current structure in 2014 as prices plummeted from record highs. Forecasts during a panel discussion showed an improving price outlook for next year, even as inflation continues to be a challenge for consumers. *********************************************************************************** Dolcini Joins American Farmland Trust Board of Directors Val Dolcini (Dole-CHEE-nee) was unanimously elected to the American Farmland Trust Board of Directors by the AFT members. Dolcini is the U.S. Head of Sustainability and Government Affairs for Syngenta and will support the members’ efforts to promote sound farming practices while protecting and keeping farmers on the land. “We are thrilled to have Val join AFT to help us grow to new heights in the future,” says AFT President and CEO John Piotti (Pee-AHT-tee). “Val’s diverse and extensive experience in agriculture and passion for our work will be an invaluable asset for AFT in the years to come.” Dolcini’s work spans over 25 years of agricultural policy and management experience in the state, federal, and nonprofit sectors. “Farming and agriculture have been my focus and passion throughout my entire career,” says Dolcini. “I specifically want to focus my time on the board to expand opportunities for new and beginning farmers.”
| Rural Advocate News | Thursday November 16, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, the same time as U.S. weekly jobless claims and an update of the U.S. Drought Monitor. U.S. industrial production is set for 8:15 a.m., followed by the Energy Department's updated report on natural gas storage at 9:30 a.m. The International Grains Council issues its monthly report Thursday and, at 2 p.m., USDA will provide its Livestock, Dairy and Poultry Outlook. Weather A little system developed along a front near the Canadian border Wednesday night and will push that front quickly through the northern half of the Plains and Upper Midwest on Thursday. The front will not have much precipitation with it but will cause breezy winds and a drop in temperatures. The front will get more active east of the Mississippi River for Friday.
| Rural Advocate News | Wednesday November 15, 2023 |
NFU Releases Farmer’s Share of Thanksgiving Food Dollar The National Farmers Union released its Farmers’ Share of the Food Dollar Report for items typically served during the Thanksgiving holiday. These figures reflect how much family farmers earn compared to the amount consumers pay at the grocery store. Consumers are likely to see an increase when they shop for the holiday meal, but little of that increase will get passed on to American farmers and ranchers. An 11-pound turkey retails for $21.89, with the farmer’s share at 66 cents. A 12-ounce box of stuffing is $3.99, and the farmer gets nine cents. Sixteen-ounce frozen sweet corn costs $2.99, and the farmer gets 41 cents. Pumpkin pie filling is $1.79 a can, and farmers get 16 cents. A five-pound bag of mashed potatoes costs $3.99, and farmers get 64 cents. A two-pound boneless ham is $12.98, with the farmer receiving $1.32. Twelve-ounce cranberries are $2.99, and the farmer’s share is 29 cents. *********************************************************************************** Stabenow Calls for More Farm Bill Urgency Debbie Stabenow, Senate Ag Committee Chair, is looking for more urgency from farm groups about getting a new farm bill in place. The Fence Post says Stabenow recalled farm bill negotiations dragging on during 2013 and says there was a “sense of urgency” in the agricultural community about getting it done. However, the Michigan Senator says she doesn’t get that same sense of urgency now. While an extension is considered important, she says it’s absolutely vital that Congress get a new farm bill written and passed in 2024. “I want to hear more of a sense of urgency from ag groups,” Stabenow told a group of reporters after a hearing. John Boozman (BOZE-man), ranking member from Arkansas, says he believes farm groups are “expressing urgency.” However, farm leaders know times are so different from 2018 and that “we don’t just need to do something, we need to do the right thing.” *********************************************************************************** November Oil Crops Outlook Increases Soybean Production, Stocks This month, USDA’s National Agricultural Statistics Service raised the 2023-2024 national average soybean yield to 49.9 bushels an acre in its Crop Production Report. That’s up from 49.6 bushels an acre in the previous report. This revision has increased the 2023-2024 soybean production forecast by 25 million bushels to 4.13 billion bushels. Higher yields in Wisconsin, Tennessee, Ohio, North Dakota, and South Dakota have contributed to the higher yield forecast. With soybean crush and exports unchanged this month, soybean ending stocks for the 2023-2024 marketing year are now forecast at 245 million bushels. The season-average soybean price forecast is unchanged this month at $12.90 a bushel. With the U.S. soybean supply forecast for 2023-2024 at 4.43 billion bushels, 25 million higher than last month’s forecast with unchanged demand, soybean ending stocks were raised to 245 million bushels. U.S. soybean oil production for the 2022-2023 marketing year is finalized at 26.2 billion pounds. *********************************************************************************** CHS Foundations Awards $4.3 Million to National FFA Foundation The CHS Foundation announced grants of $4.3 million to the National FFA Organization, continuing a partnership to support the next generation of agricultural leaders. “We are thrilled to continue this partnership with CHS,” says Molly Ball, president of the National FFA Foundation. “Throughout our partnership, CHS has been unwavering in its support and continues to see the potential leaders in each of our members and advisors.” The grants will help fund FFA programs in 17 states, provide scholarships for attending conferences and contests, and introduce students from all backgrounds to ag careers through the workforce development program. It will also support the National Association of Ag Educators in attracting ag teachers and building strong teaching programs. “CHS and its foundation are proud to make the largest gift in the foundation’s 75-year history to the National FFA,” says Megan Wolle, president of the CHS Foundation. “We’re connecting to the next generation of leaders.” *********************************************************************************** Paraguay Beef Imports Won’t Boost Tight U.S. Supplies USDA’s decision to accept beef imports from Paraguay for the first time in 25 years will likely not change the overall volume of U.S. imports, even during tight supplies and high prices. U.S. meat importers tell Reuters that’s due to a quota on shipments. American beef prices set records this year because of herd contraction to its smallest level in decades. As a result, meat companies are relying on more imports to process enough ground beef to meet demand. Paraguay didn’t negotiate with the U.S. to sell beef under its own quota agreement. That means it has to compete with other countries in the same situation to fill a group tariff-rate quota. The quota for these countries, including Brazil, Ireland, Japan, and Namibia, is approximately 650,000 metric tons. Suppliers already filled that quota earlier this year. Suppliers face a steep 26 percent tax on the value of products shipped above the quota. *********************************************************************************** Beyond Meat Struggling to Stay Afloat An industry analyst says Beyond Meat may need to reach into the financial markets next year to stay in business. Ag Funder News says the firm posted a $70.5 million net loss in the third quarter. Net revenues slid again at the plant-based meat company in Q3, dropping eight percent year-over-year and 26 percent versus the prior quarter. Beyond Meat did see positive free cash flow in the third quarter, but the company doesn’t expect to sustain it. Industry analysts are saying that the firm is now in “survival mode” and will need to tap the financial markets in 2024 to stay afloat. CEO Ethan Brown says the company anticipated a modest return to growth in the third quarter that did not occur. “We did see pockets of growth, especially in the EU, where we saw double-digit gains in net revenues,” Brown says. “But we are still disappointed with the overall results.”
| Rural Advocate News | Wednesday November 15, 2023 |
Wednesday Watch List Markets At 7:30 a.m. CST Wednesday, the U.S. producer price index and retail sales reports for October will be released. At 9:30 a.m., the U.S. Energy Department's weekly inventory report will be out with updated data after last week's absence, due to system upgrades. The National Oilseeds Processors Association will have an estimate of members' soybean crush later Wednesday morning. At 2 p.m., USDA will have new cost of production forecasts for 2023. U.S. President Joe Biden and China's President Xi Jinping are set to meet in San Francisco Wednesday and traders will be keenly watching any trade-related comments. Weather A disturbance in the Gulf of Mexico will continue to produce areas of showers in eastern sections on Wednesday. A cold front is also setting up along the Canadian border from Montana to North Dakota that will produce a band of showers there Wednesday night, mostly in the form of snow. Otherwise, the majority of the country will be dry and warm by mid-November standards.
| Rural Advocate News | Tuesday November 14, 2023 |
Ag Committee Leaders Agree on One-Year Farm Bill Extension Leaders of the House and Senate Agriculture Committees came to an agreement on extending the lifespan of the 2018 Farm Bill by one year. The agreement came with the release of a House Republican proposal funding USDA operations through January 19. A 32-page continuing resolution contained 17 pages on farm bill extension and provided some funding for small-ticket programs that had run out, such as feral swine eradication. Dairy subsidies would be extended through December 31, 2024, to avert a looming dairy cliff on January 1. Leaders from both ag committees say the extension “in no way” substitutes in place of a five-year farm bill. Speaker of the House Mike Johnson revealed a two-part funding package that would provide money for some federal operations, including USDA, for two months and through February 2 for the rest of government. The extension depends on House, Senate, and White House agreement on the CR. *********************************************************************************** FAO Predicts Decline International Foodstuffs Trade The United Nations Food and Agricultural Organization predicts a declining international trade in foodstuffs for multiple reasons. While the organization’s latest forecasts point to favorable production outlooks for most basic foodstuffs, global food production systems remain vulnerable to several risks. Those challenges include extreme weather events, rising geopolitical tensions, and policy changes that could potentially tip the delicate supply-demand balances and dampen prospects for international trade in food commodities and global food security. The global food import bill is forecast to reach a new high of $2 trillion in 2023. High-income and upper-middle-class countries are expected to lead the increase. Other challenges include the cost of shipping those foodstuffs. Dry bulk freight costs across the grains and oilseeds routes mostly edged higher during the six months leading up to October 2023 but remained well below last year’s levels. However, robust demand has led to a recent rebound in freight rates. *********************************************************************************** Hearing on Carbon-Capture Pipeline Ends in Iowa Summit Carbon Solutions presented a request to Iowa regulators to build a $5.5 billion carbon capture pipeline. Local reports say Iowa regulators recently concluded a hearing on the subject. However, deciding whether the company should get a construction permit and eminent domain powers to get land for the pipeline could take many months. The Sierra Club’s Iowa Chapter opposes the project. Sierra’s attorney says regulators likely won’t issue a decision until March or April. That allows enough time needed to file legal documents and responses. Summit’s pipeline would also run through South Dakota and into Minnesota and Nebraska. The company says the pipeline is critical to helping ethanol remain marketable as the nation seeks to lower its greenhouse gas emissions. Iowa residents are concerned about safety and property rights. Summit says it has agreements in place with 75 percent of the affected landowners, and the project will exceed federal safety standards. *********************************************************************************** FFA, 4-H Members Admitted Free to NCBA Trade Show The next generation of agricultural leaders are invited to attend the NCBA Trade Show at CattleCon24 for free on Friday, February 2. FFA and 4-H members can get that free admission on Next Gen Ag FFA & 4-H Day, which will include a variety of events and activities for youth and families. Courtesy of Culver’s, the first 250 FFA members to register will receive complimentary Friday NCBA trade show admission. Nationwide is providing complimentary Friday NCBA Trade Show admission to the first 250 4-H members who register. Trade Show attendees can explore more than eight acres of displays and exhibitors offering the latest advancements in equipment, technology, and feed supplements. To get the free Friday NCBA Trade Show registration, FFA members must use the code FFACULVERS, and 4-H members, 4HNW. A variety of other registration options are available. For more information and to register and reserve housing, go to convention.ncba.org. *********************************************************************************** U.S. Reducing Beef Exports as Herd Shrinks The nation’s ranchers slashed the U.S. cattle herd to its lowest level in decades. As a result, the U.S. is importing record amounts of beef this year and exporting much less. The steep drop in cattle numbers has led to significantly higher beef prices. Reuters says those high prices make companies look to import cheaper beef and discourage American beef purchases by buyers like China, Japan, and Egypt. The USDA expects the U.S. to drop to fourth in the rankings for the largest beef and veal exporters, down from number two last year. America’s beef exports are projected to sink 14 percent from 2022 to three billion pounds, the lowest level since COVID slowed meat processing and international trading in 2020. USDA expects American beef production to decline further in 2024 due to tight cattle supplies, and beef exports are forecast to hit an eight-year low of 2.8 billion pounds. *********************************************************************************** Ag Export Values Dropped in FY 2023 Agricultural export values in fiscal year 2023 that ran through September 30 declined while imports narrowly increased. Agricultural product values from October 2022 through the end of September were reported to be $178.7 billion, down from $196.1 billion a year earlier. A USDA report last week said import values rose 0.6 percent to $195.4 billion. Corn exports were the second-biggest decliner behind only vegetable oils with the value falling 32 percent to $13.1 billion. Cotton fell 28 percent, wheat values were down 21 percent, and soybeans dropped two percent year-over-year. The agency says the volume of corn exports dropped 32 percent, wheat shipments slipped 14 percent, and soybeans declined seven percent. Mexico was the biggest buyer of U.S. corn by volume during the fiscal year, purchasing 16.5 million metric tons of the grain, a narrow drop compared to the previous year. China bought the most beans, and Mexico the most wheat.
| Rural Advocate News | Tuesday November 14, 2023 |
Tuesday Watch List Markets Grain traders remain fixated on South American weather and the latest export sales news. The U.S. Labor Department's consumer price index for October will be out at 7:30 a.m. CST Tuesday, the only significant report of the day. Traders may become a little jumpy later this week, if no agreement is reached to avoid a government shutdown by the November 17 deadline. Weather A disturbance in the Gulf of Mexico will continue to produce showers near the coast for Tuesday. Elsewhere will be rather dry and warm in most areas.
| Rural Advocate News | Monday November 13, 2023 |
September Pork Exports Steady, Beef Lower September U.S. pork exports were slightly lower than a year ago but maintained a robust pace. USDA data compiled by the U.S. Meat Export Federation shows pork exports reached 221,140 metric tons, one percent less than last year, while export value dropped four percent to $643.7 million. For the first three quarters of this year, pork exports rose nine percent year-over-year to 2.13 million metric tons and climbed seven percent in value to almost $6 billion. “Pork exports achieving another $200 million month in Mexico is fantastic,” says USMEF President and CEO Dan Halstrom. Beef exports continued struggling compared to 2022 but showed increasing strength in Western Hemisphere markets. Beef exports totaled 98,757 metric tons, 15 percent below last year and the lowest total of 2023. Value fell 12 percent to $797.5 million. Exports were lower across the board in Asia but picked up momentum in Mexico, Canada, and other locations. *********************************************************************************** Farmers Union Supports Increased Poultry Transparency National Farmers Union President Rob Larew supports the finalized “Transparency in Poultry Grower Contracting and Tournaments” rule from the USDA under the Packers and Stockyards Act. He says monopolies in agriculture have put the squeeze on farmers and consumers for far too long. “Poultry growers face an especially unfair contracting system that’s opaque and secretive,” Larew says. “This finalized rule issued last week will require poultry companies to be more honest in their dealings with growers.” He also calls this good news for family farmers and will bring strong rules to promote sorely needed transparency for livestock producers. The final poultry rule released last week is the first of several updates USDA wants to make to the Packers and Stockyards Act. USDA also announced efforts to increase competition and innovation in seeds, improvements to USDA meat procurement requirements, and the establishment of a new Chief Competition Officer position at USDA. *********************************************************************************** Injecting Carbon Into National Forests and Grasslands The U.S. Forest Service proposed a change in regulations that would allow it to consider requests to inject carbon dioxide beneath the 193 million acres of national forests and grasslands. Currently, the Forest Service is barred from authorizing “exclusive and perpetual use and occupancy” of its land by outsiders, a prohibition that would apply to carbon storage because the gas would remain underground for hundreds of years. The proposed regulation would create an exemption for carbon capture and storage projects. If approved, the USDA agency could “authorize proposed carbon capture and storage on National Forest Service system lands where and if it’s deemed appropriate.” Public comments on the carbon injection idea will be accepted until January 2. The Forest Service says the proposed rule would harmonize carbon storage regulations with the Bureau of Land Management, the other major federal land manager. The BLM issued its carbon storage policy in July 2022. *********************************************************************************** NCBA Opposes Beef Imports from Paraguay The National Cattlemen’s Beef Association opposes the USDA’s decision to allow Paraguayan beef imports starting next month. NCBA has repeatedly raised concerns with USDA over Paraguay’s history of foot-and-mouth disease and the outdated information used to justify Paraguay’s access to the U.S. market. NCBA is concerned that USDA’s failure to use information from recent site visits in the risk assessment may pose a risk to the safety of the U.S. cattle herd. “USDA based their decision on a deeply flawed risk assessment that uses old data from site visits that were conducted more than nine years ago,” says NCBA Executive Director of Government Affairs Kent Bacus. “Paraguay has a history of FMD outbreaks, and it’s unclear if their inspection system can provide an equivalent level of safety for animal health to prevent possible FMD on U.S. soil.” He also says diplomacy shouldn’t be done on the backs of U.S. cattle producers. *********************************************************************************** Genetically Modified Seed Prices Rising Faster Than Non-GM Prices paid for crop seed increased significantly faster than the prices farmers received for crop commodities between 1990 and 2020. During that period, the average prices farmers paid for all seed rose by 270 percent, while the crop commodity price index rose 56 percent. For crops planted predominantly with genetically modified (GM) seed, like corn soybeans, and cotton, those seed prices rose by an average of 463 percent between 1990 and 2020. During this period, GM seed prices peaked in 2014 at 639 percent above 1990 levels. Despite their higher cost, GM crop varieties have provided significant productivity gains for farmers, partly through higher yield, but also by lowering farm production costs. For example, GM traits for insect resistance reduce the need for pesticide applications. Similarly, GM traits for herbicide tolerance provide a substitute for mechanical tillage, thus reducing the cost of labor, machinery, and fuel previously used in controlling weeds. *********************************************************************************** Corn, Soybean Export Sales Rise USDA data shows that export sales of corn, soybeans, and wheat were all higher for the week ending on November 2. Corn sales to overseas buyers totaled 1.02 million metric tons. That’s 36 percent higher than the previous week and four percent higher than the prior four-week average. Mexico was the biggest buyer at 384,800 metric tons. Corn exports for the week totaled almost 825,000 tons, the highest in the marketing year so far. Soybean sales rose seven percent above the prior week to 1.08 million metric tons but was still eight percent lower than the four-week average. China was the top buyer at 692,400 metric tons. Soybean exports reached 2.24 million tons; 12 percent higher than the previous week. Wheat sales through November 2 totaled 354,300 tons, 29 percent above the prior week but still 26 percent below the four-week average. Wheat exports rose 34 percent to 134,300 tons.
| Rural Advocate News | Monday November 13, 2023 |
Top 5 Things to Watch - Ag Summit Registration, Low River Levels and Active Markets 1. Ag Summit launch: Watch DTN pages and the November Progressive Farmer magazine for announcements on the 2023 DTN Virtual Ag Summit, December 5-6. We'll have sessions on a number of business-critical topics from changing farmland values to finances, interest rates and global economics. To register for the Summit, go here: 2. Southern rains won't fix low rivers. Warm weather may break some records this week, then cooler weather should bring scattered rains. But they're unlikely to significantly change low river levels in the Mississippi value, which we'll continue to track. 3. Markets swing on record estimate: Grain markets had mostly been watching South America crop conditions until the November WASDE report hit, with USDA's expectation of a new US average corn yield record of 174.9 bushels per acre, besting the 2016 number. We'll be watching what catches the trade's attention throughout the week. 4. Dicamba ruling imminent: We reported on Friday that lawyers expect a new EPA ruling on dicamba use. Center for Biological Diversity, National Family Farm Coalition, Pesticide Action Network and the Center for Food Safety filed the lawsuit over dicamba's drift potential in December 2020. Sources tell DTN the goal has been to have new dicamba rules ahead of the 2024 season. 5. Economic reports to watch: On Monday the USDA weekly report of grain export inspections is set for 10 a.m., followed by a release of the federal budget for October at 1 p.m. and USDA's Crop Progress report at 3 p.m. Tuesday features the U.S. Labor Department's consumer price index for October at 7:30 a.m. Wednesday sees the U.S. producer price index and retail sales reports for October at 7:30 a.m. At 9:30 a.m. the U.S. Energy Department's weekly inventory report will be out with updated data after last week's absence due to system upgrades. The National Oilseeds Processors Association will have an estimate of members' soybean crush later Wednesday morning, and at 2 p.m., USDA will have new cost of production forecasts for 2023. Thursday starts with USDA's weekly export sales report at 7:30 a.m., the same time as U.S. weekly jobless claims and an update of the U.S. Drought Monitor. U.S. industrial production is set for 8:15 a.m., followed by the Energy Department's report on natural gas storage at 9:30 a.m. At 2 p.m., USDA will have its Livestock, Dairy and Poultry Outlook. Friday we'll watch U.S. housing starts report for October, due at 7:30 a.m. and USDA's monthly cattle on-feed report for November 1, set for 2 p.m.
| Rural Advocate News | Monday November 13, 2023 |
Monday Watch List Markets Back from the weekend, traders will continue to keep watch over South American weather forecasts. USDA's weekly report of grain export inspections is set for 10 a.m. CST, followed by Crop Progress at 3 p.m. The U.S. Treasury releases the federal budget for October at 1 p.m. Weather A disturbance in the Gulf of Mexico will be bringing areas of showers near the coast on Monday. It will be drier elsewhere, but temperatures are largely above normal. Some breezy winds may occur in parts of the Plains, but nothing overly hazardous is expected.
| Rural Advocate News | Friday November 10, 2023 |
Cattle Group Commends New Competition Initiative The USDA released a package of rules and orders seeking to increase competition in the livestock industry. That package establishes a Chief Competition Officer at USDA’s Agricultural Marketing Service. This position will be hired as a career rather than a political appointment. The officer will help elevate and institutionalize competition-related concerns at USDA. “Today’s announcement is another item crossed off a to-do list the administration is following to ensure a fairer, more competitive marketplace for U.S. cattle producers,” says U.S. Cattlemen’s Association President Justin Tupper. The package also updates AMS Institutional Meat Purchase Specifications that large volume buyers like federal, state, and local government agencies, schools, restaurants, hotels, and other food service users follow when buying meat products. Currently, meat and meat products do have to be of domestic origin, but the updated standards will specify that to mean only animals that are born, raised, and slaughtered in the U.S. *********************************************************************************** November WASDE Finds Higher Corn and Soybean Production The USDA’s November World Agricultural Supply and Demand Estimates show increased corn and soybean production compared to the previous report. The corn outlook is for larger production, domestic use, exports, and ending stocks. Corn production is up 170 million bushels from last month on a 1.9-bushel increase in yield to 174.9 bushels an acre. Corn ending stocks are up 45 million bushels to 2.2 million. The season-average corn price is down 10 cents to $4.85 a bushel. The soybean outlook shows increased production and ending stocks. Soybean production is forecast at 4.13 billion bushels, a 25 million increase on higher yields. Ending stocks rose to 245 million bushels. The season-average soybean price is unchanged at $12.90 per bushel. The wheat outlook calls for larger supplies and decreased domestic use. Ending stocks are projected to rise by 14 million bushels to 684 million. The season-average farm price dropped a dime to $7.20. *********************************************************************************** Commerce Decision on Imports Saves Farmers a Lot of Money The U.S. Commerce Department recently lowered the duties placed on phosphate fertilizers imported from Morocco. The National Corn Growers Association says this move gives true savings to farmers and access to critical inputs that have been scarce during the last couple of years. Commerce lowered the rates from 19.97 percent to 2.12 percent. “Farmers were already facing rate hikes on inputs, and the duties were making the situation worse,” says NCGA President Harold Wolle. “This gives us more hope.” Assuming Commerce finalizes those duty rates and imports resume, farmers could see a reduction in added costs of $7 per acre on imported fertilizer from Morocco. NCGA’s analysis says many factors and dynamics contribute to changes in fertilizer markets and prices, but the imposed duty rates undoubtedly had an impact on the prices paid by farmers. “Our advocacy campaign to lower the duty rates wouldn’t have succeeded without our members,” Wolle says. *********************************************************************************** Initiative to Enhance Specialty Crop Industry’s Competitiveness USDA Deputy Secretary Xochitl (zo-CHEEL) Torres Small announced the agency is starting a new effort to support producers in the U.S. Specialty Crops sector and increase its competitiveness. “We all count on America’s specialty crops for reliable access to nutritious, fresh foods,” Torres Small says. “As part of the new effort, USDA has compiled useful information on its programs and services that support the specialty crops industry into a Specialty Crops Resource Directory.” The directory will be a one-stop shop for the sector and contains a comprehensive snapshot of USDA’s resources and services for specialty crop producers and businesses in one convenient location. Also, USDA leadership will directly engage with the specialty crop industry and its producers during the next several months to get feedback on how the Department can better address gaps in services and meet the industry’s needs. A new webpage on the initiative is available at usda.gov. *********************************************************************************** USB Invests in Infrastructure to Give Growers an Edge The United Soybean Board invests in many infrastructure projects that will help increase profits for soybean growers and the industry itself, which is undergoing significant changes. Through the soy checkoff, USB pursued feasibility studies leading to the dredging of the Mississippi River in Louisiana, a terminal expansion in Washington, and a reduced freight toll agreement on the St. Lawrence Seaway. “The goal of these investments is to give U.S. soybean growers a competitive edge in the global market,” says Belinda Burrier of the USB Board of Directors. “This helps us be more reliable in moving soybeans from our farm to the global customer.” While the checkoff isn’t allowed to invest directly in these projects, it does enable them by investing in feasibility and engineering studies. “It’s a win-win as we make $12.34 on every dollar invested,” Burrier adds. “I don’t know of too many investments with that kind of return.” *********************************************************************************** CHS Yearly Revenues Down Five Percent, Net Income Up 13 Percent CHS Inc., one of the nation’s largest agribusinesses, reported a net income of $1.9 billion for the fiscal year ending on August 31 compared to $1.7 billion for fiscal year 2022. Key drivers included consolidated revenues of $45.6 billion for fiscal year 2023 compared to $47.8 billion for fiscal year 2022. In the company’s ag segment, robust meal and oil demand contributed to higher earnings in the company’s soybean and canola processing business. “The support of our member cooperatives and farmer-owners, dedication of our employees, exceptional operational performance, and favorable market conditions enabled us to achieve the strongest earnings in our history during fiscal year 2023,” says Jay Debertin, president and CEO of CHS Inc. As a result of those earnings, CHS intends to return $730 million in cash patronage and equity redemptions to its member cooperatives and farmer-owners in fiscal year 2024, demonstrating its “commitment to share profits” with producers.
| Rural Advocate News | Friday November 10, 2023 |
Friday Watch List Markets Veterans Day will be observed Friday. U.S. government offices are closed, but markets and banks are open. University of Michigan's consumer sentiment index for early November will be released at 9 a.m. CFTC data will not be released until Monday afternoon. Traders remain interested in South American weather and will watch for further export business. The deadline for a possible government shutdown is November 17, one week away. Weather Showers continue to develop near a front from Texas to the Mid-Atlantic and points southward. Cooler temperatures continue to move in behind the front for areas farther north.
| Rural Advocate News | Thursday November 9, 2023 |
USDA Predicts Record Corn Production OMAHA (DTN) -- USDA increased U.S. 2023-24 corn production by 170 million bushels (mb) to 15.234 billion bushels (bb) -- a surprise that was beyond pre-report estimates. If that holds, that breaks the 2016 production record. USDA also increased soybean production by 25 mb to 4.129 bb. According to DTN Lead Analyst Todd Hultman, Thursday's new-crop U.S. ending stocks estimates were bearish for corn and slightly bearish for soybeans and wheat. Hultman sees the world ending stocks estimates from USDA as bearish for corn and neutral for soybeans and wheat. Stay tuned throughout the morning and refresh this page often as we will be sending a series of updates with the important highlights from today's reports, including commentary from our analysts. CORN USDA raised the 2023-24 crop by bumping up the yield estimate 1.9 bushels per acre (bpa) to 174.9 bpa. That drove up production 170 mb to 15.234 bb as a result. That breaks the production record of the 2016 crop, which came in at 15.148 bb. USDA held pat on harvested acres at 87.1 million acres. Ending stocks for the 2023-24 crop were increased 45 mb to 2.156 bb. On the demand side, USDA increased Feed and Residual use 50 mb to 5.65 bb. Total 2023-24 Food, Seed and Industrial use at 6.740 bb, up 25 mb. Ethanol use was also increased 25 mb to 5.325 bb. Total domestic use is forecast at 12.390 bb up 75 mb. Exports for the new crop also were increased 50 mb to 2.075 bb. The farmgate price for the 2023-24 crop was lowered 10 cents a bushel to $4.85 a bushel. Globally, beginning stocks for the 2023-24 new crop were raised 1.12 million metric tons (mmt) to 299.22 mmt. Production globally was increased 6.32 mmt to 1,220.79 mmt. Global exports were bumped up 3.37 mmt to 199.62 mmt. Global ending stocks for the new crop are forecast at 314.99 mmt, up 2.59 mmt. Ukraine's production was increased 1.5 mmt to 29.5 and Ukraine's exports were increased .5 mmt to 20 mmt. Looking at global 2022-23 crop, Brazil's production was held at 137 mmt and exports were held pat at 57 mmt. Argentina's production was held at 34 mmt and Argentina's exports were held pat at 23 mmt. SOYBEANS USDA raised its national soybean yield forecast 49.9 bpa, up 0.3 bpa from last month's estimate. Harvest acres were left unchanged at 82.8 million acres, unchanged from the previous forecast. Total production climbed to 4.13 bb. All estimates are within the range of pre-report estimates. Domestic ending stocks for 2023-24 are now forecast at 245 mb, 25 mb higher than last month. The change reflects increased production forecasts, as USDA made only a minor change to the residual on the demand side of the balance sheet. The national average farm gate price was left unchanged at $12.90 per bushel. Globally, ending stocks for the 2023-24 marketing year were 114.51 million metric tons, down 1.11 mmt from last month. The change is mostly due to smaller beginning stocks. USDA forecasts Brazilian farmers will harvest 163 mmt of soybeans, while Argentine growers will harvest 48 mmt. Old-crop, 2022-23 world ending stocks, dropped to 100.31 mmt from last month's 101.9 mmt. USDA said the changes were due to back-year balance sheet revisions for China and Brazil. "China's beginning stocks are reduced on lower soybean imports for 2021-22 and 2022-23 and higher crush for 2022-23. Conversely, Brazil's beginning stocks are increased on a larger 2022-23 crop of 158 million tons due to higher-than-expected use to date," the report stated. WHEAT USDA pegged U.S. wheat production at 1.812 bb in November, unchanged from October's estimate. USDA estimates ending stocks at 684 mb in November, an increase from October's estimate of 670 mb. U.S. wheat use is estimated at 1.86 bb, unchanged from October. Wheat exports were set at 700 mb, unchanged from October. USDA set the farmgate price of wheat at $7.20, down from $7.30 last month. Wheat world ending stocks were estimated at 258.69 mmt, an increase from 258.13 mmt in October. USDA estimates global wheat production at 781.98 mmt, down from 783.43 mmt in October. USDA estimates wheat production in Argentina at 15.0 mmt, down from the October estimate of 16.5. Brazil's production is estimated at 9.4 mmt. Wheat production in Australia was unchanged from last month's 24.5 mmt. Wheat production in Russia was pegged at 90 mmt and Ukraine production was estimated at 22.5 mmt. Wheat exports from Russia were pegged at 50 mmt and 12 mmt in Ukraine. USDA increased wheat imports 10 mb to 145 mb. LIVESTOCK Thursday's November WASDE report posted reduced overall beef and pork production levels for 2023, while 2024 projection were mixed from the previous month with a strong increase production projected in beef, while moderate to firm pork production losses were seen. This will continue to likely cause concern for beef producers and overall cattle prices in the near future. Fourth-quarter beef production fell 55 million pounds, creating the expectation of annual production levels falling 44 million pounds from the last month estimate. The focus on increased production of 535 million pounds in 2024 was strongly attributed to gains in first quarter projections accounting for 235 million pounds. The confirmation of these numbers is adding additional bearish influence to overall market prices as traders are focusing on larger-than-expected beef production through most of 2024. Beef price levels for the fourth quarter of 2023 were unchanged, which also left overall annual price projections unchanged at $177.30 per cwt. Price levels for 2024 were unchanged when it came to annual overall price projections, but first quarter 2024 prices were reduced by $2 per cwt from the previous month while second quarter prices fell $1 per cwt. Beef Imports for 2023 increased by 36 million pounds from the previous month while total beef supplies fell 8 million pounds. Expected imports in 2024 increased 40 million pounds from last month's estimate, increasing overall 2024 supply issues by 590 million pounds. Pork Production posted moderate to strong production losses from the previous month for both 2023 and 2024. Annual pork production is expected to fall 72 million pounds in 2023 from October's estimate, while annual pork production in 2024 is estimated to be reduced 165 million pounds from previous month's levels. This is expected to create some additional support through the lean hog complex long term, but there remains the need to sustain current values based on short term demand. Hog prices were actually reduced on an annual level in both 2023 and 2024, with fourth quarter prices falling $3 per cwt in the latest report. First quarter 2024 hog prices were also reduced by $3 per cwt, and currently based on current hog numbers in the pipeline and the potential for this to put pressure on short term market levels. Pork imports for 2023 increased 9 million pounds from the previous month estimate but were unchanged for 2024 from October levels. The small adjustments in imports are not expected to be a major focus following the moderate to firm overall reduction in pork production for both 2023 and 2024 from October levels.
| Rural Advocate News | Thursday November 9, 2023 |
Bayer Considers Company Breakup Bayer confirmed in an investor call on Wednesday the company is considering splitting business units following poor financial results. “We are redesigning Bayer to focus only on what’s essential for our mission – and getting rid of everything else,” according to Bayer CEO Bill Anderson. Anderson, who has been at the company's helm since June, says by the end of next year, Bayer will remove multiple layers of management and coordination. The company ruled out splitting into three divisions, but other options remain. Anderson adds, "In terms of structural options, beyond maintaining three divisions, a separation of either Consumer Health or Crop Science remains under evaluation." Sales in the agricultural business were level year on year at 4.3 billion euros. Higher volumes in all regions were mostly offset by lower prices for glyphosate-based. Corn Seed and Traits sales rose by 21.2, while Fungicides were up 16.2 percent. The Soybean Seed and Traits business likewise posted double-digit percentage growth of 15.6 percent. By contrast, sales at Herbicides were down by 17.3 percent. *********************************************************************************** USTR Tai Traveling to Indiana U.S. Trade Representative Katherine Tai will Travel to Indianapolis, Indiana as part of the Biden-Harris Administration's Investing in Rural America tour. Tai will visit Indiana this Friday to highlight how the administration's economic policies have lowered trade barriers abroad for American agricultural products and increased access for farmers and producers in global markets. Ambassador Tai will tour Starkey Farms, a seventh-generation family farm committed to local and regional farming conservation during her trip. Starkey Farms features more than 2,500 acres near Brownsburg, Indiana. Starkey Farms Partnership is also a retail partner for AgroLiquid. The Investing in Rural America tour kicked off last when President Joe Biden and Agriculture Secretary Tom Vilsack visited Dutch Creek Farms in Northfield, Minnesota. During the visit, President Biden announced more than $5 billion in investments from his Investing in America agenda to advance rural prosperity, economic development, competition, and sustainability. *********************************************************************************** TFI Supports Amendment to Block Proposed Rule on Air Quality Standards The Fertilizer Institute Wednesday reiterated its opposition to the Environmental Protection Agency’s proposed rule to tighten national ambient air quality standards for fine particulate matter. The organization also voiced support for legislation to prohibit the EPA altering the standard at this time. TFI President and CEO Corey Rosenbusch says, “Only two years ago the EPA confirmed that the current standard is protective of public health and the environment,” adding, “They have not provided any reasoning as to what has changed in the past two years aside from the fact that these emissions continue to decline.” According to the government’s own data, fine particulate matter emissions have declined by over 40 percent over the past twenty years, and they continue to go down. Additionally, the current rule balances environmental protection with robust commercial and industrial activity. TFI joined more than 70 other industry groups in a letter articulating the economic impact the rule they say would have, as well as the faulty reasoning behind the change. *********************************************************************************** Court Confirms Permanent Injunction on California’s Prop 65 The U.S. Ninth Circuit Appeals Court recently affirmed a district court permanent injunction prohibiting California's Proposition 65 warning requirement related to glyphosate. Proposition 65 is a right‑to-know law that is intended to enable Californians to make informed choices about exposures to chemicals that cause cancer or reproductive effects. The proposition did not ban the use of glyphosate in the state. California attempted to apply Proposition 65 to glyphosate in 2017 following the 2015 ruling by the International Agency for Research on Cancer that glyphosate is an animal carcinogen and a probable human carcinogen. The National Association of Wheat Growers welcomed the court's response of a permanent injunction. NAWG President Brent Cheyne says, “California’s Proposition 65 requirement threatened the use of glyphosate by requiring false and misleading labels on products that may contain glyphosate.” NAWG was joined by 11 other agriculture organizations in the case, including CropLife America and the National Corn Growers Association. *********************************************************************************** Study Finds Perception Gaps Between Farmers and Consumers Nutrien this week released Bridging the Agricultural Perception Divide, a research study on the perception gaps between farmers and consumers in North America on issues such as sustainability, technology, and land usage. The report also indicates there is some common ground and opportunities for bridge-building. The findings revealed that the largest perception gaps between farmers and consumers are related to environmental stewardship and industry advancement. For example, farmers were significantly more likely to agree with statements related to the responsible use of crop inputs, chemical use, environmental progress, farming careers, and soil quality. However, topics related to Societal Support for Farmers reveal much closer agreement. The study also finds that younger consumers have the lowest interest and trust in agriculture. When farmers were asked about the top issues affecting the agriculture industry today, their responses included the rising cost of growing food, followed by a desire for consumers to have more knowledge about the industry, and concerns around misinformation about where food comes from. *********************************************************************************** New York Announces Flexibilities Amid Milk Carton Shortage In a memo to food service managers at public schools, the state of New York announced flexibilities amid a milk carton shortage recently. Due to the unexpected nationwide shortage of paper milk cartons, many School Food Authorities are not able to obtain milk in half pints for their school meals programs. Although schools are expected to meet the fluid milk requirements to the greatest extent possible, supply chain disruptions, including disruptions that limit milk variety or affect serving size, are considered a temporary emergency condition. The New York State Education Department announced schools are allowed to pour milk from larger containers into individual cups, offer one type of milk instead of a variety, offer an alternate form of fluid milk such as low-fat or fat-free lactose-free, or as a last resort, not offer fluid milk altogether. However, juice cannot be offered as a replacement, and schools must still adhere to National School Lunch Program guidelines.
| Rural Advocate News | Thursday November 9, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, the same time as U.S. weekly jobless claims and an update of the U.S. Drought Monitor. U.S. factory orders for September will be out at 9 a.m. USDA's WASDE and Crop Production reports are due out at 11 a.m., followed by DTN's WASDE webinar at 12:30 p.m. South American weather remains a topic of concern for traders. Weather A front has pushed south into Texas and east across the Midwest. A disturbance is moving into the southern end of the front, where it is starting to produce rain over Texas that should overspread much of the Southern Plains and Delta throughout the day, easing drought conditions. Cooler air behind the front is actually seasonable for this time of the year, though it is a sharp drop from recent days.
| Rural Advocate News | Wednesday November 8, 2023 |
Farmer Sentiment Rises in Latest Ag Economy Barometer The Purdue University-CME Group Ag Economy Barometer rose four points in October to 110. The modest improvement in farmer sentiment resulted from farmers' improved perspective on current conditions on their farms as well as their expectations for the future. The Index of Current Conditions rose three points to 101, while the Index of Future Expectations rose five points to 114. Farmers in this month's survey were a bit less concerned about the risk of lower prices for crops and livestock and felt somewhat better about their farms' financial situation than a month earlier, although that did not translate into a more favorable investment outlook among survey respondents. Farmers remain cautiously optimistic about farmland values, particularly when asked to look ahead five years. Nearly one in four farmers responding to the survey reported making changes in their farm operations in response to long-term weather pattern changes. Changes implemented by farmers were wide-ranging, and some reported making multiple changes in response to shifting weather patterns. *********************************************************************************** Four States Join Suit Against Agri Stats Four states this week joined the Department of Justice’s civil antitrust lawsuit against Agri Stats. The suit alleges that Agri Stats organized and managed anticompetitive information exchanges among broiler chicken, pork and turkey processors. The Attorneys General of Minnesota, California, North Carolina and Tennessee joined the effort Monday. The Justice Department filed the lawsuit in September of this year, alleging Agri Stats violated Section 1 of the Sherman Act. The complaint alleges that Agri Stats' scheme continues to this day in the chicken processing industry, among others. While Agri Stats paused its turkey and pork reporting after facing several private antitrust lawsuits, Agri Stats has expressed an intent to resume such reports following the lawsuits. A statement at the time of filing by Agri Stats says, "The lawsuit threatens serious harm to American consumers of chicken, pork, and turkey because protein producers depend upon Agri Stats' reports to help them identify opportunities to reduce production costs to keep prices low." *********************************************************************************** Shifting Consumer Demand for Dairy Foods Fuels Butterfat Boom The long-term demand trends for dairy products indicate butter, cheese and other full-fat dairy foods will continue to grow in sales and volume for the foreseeable future. U.S. consumers have shifted away from margarine and reduced-fat dairy foods over the last decade as nutritional science surrounding saturated fats has evolved. As a result, butterfat levels in the national milk supply have risen sharply in response to changing demand patterns and dairy market dynamics. According to a new report from CoBank's Knowledge Exchange, the butterfat boom will continue as the entire dairy supply chain is capturing additional value from milk with higher fat and protein levels. CoBank's Corey Geiger says, "Despite the significant growth in domestic butterfat production over the last decade, there is still tremendous upside potential, largely because the U.S. remains a milk-fat-deficit nation." Geiger says the overall market picture for butterfat is quite clear, with tremendous growth potential both domestically and ultimately via the export market. *********************************************************************************** Program to Support Native American Farmers with Climate-Smart Grazing Farm Journal Foundation and the Intertribal Agriculture Council are launching a new program to support climate-smart grazing practices among Native American cattle farmers and ranchers. The program, which will work in partnership with Ecosystem Services Market Consortium and the Yield Lab Institute, will offer a combination of direct incentive payments, technical assistance, and education to producers who adopt certain conservation practices on their grazing lands. It will also better enable Native American cattle producers to participate in carbon and branded commodity markets and create pathways to join USDA conservation programs. Enrollment is now open for this three-year project, which will provide approximately $1 million in direct funding to producers to enable them to implement one or more designated climate-smart conservation practices. The program will work with Native American producers in three states – Florida, Montana, and Oklahoma – whose primary source of business income comes from beef cattle farming. Both small-scale and large-scale producers are encouraged to apply. Learn more at farmjournalfoundation.org. *********************************************************************************** Army Corps to Reduce Missouri River to Winter Flows Gavins Point Dam releases will be reduced in late November as flow support to navigation ends. Releases are currently 32,000 cubic feet per second. John Remus of the Amry Corps of Engineers says, "We will continue to make releases from Gavins Point Dam to provide flow support at an intermediate service level, 1,500 cubic feet per second less than full service, through the end of the navigation flow support season." Winter releases from Gavins Point Dam for the 2023-2024 winter will be slightly higher than last winter, which were at the minimum rate. However, Remus adds, "Intake operators in the lower river should be taking measures to assure they can maintain access to the water." October runoff in the Missouri River basin above Sioux City, Iowa, was 1.5 million-acre-feet, 124 percent of normal. Based on the most recent seasonal drought outlook, drought conditions are expected to persist through the end of January in the upper Basin, with a potential for improvement in the lower Basin. *********************************************************************************** Vilsack to Speak at CSU Spur Water in the West Symposium Thursday Agriculture Secretary Tom Vilsack will be in Denver Thursday to give opening remarks at the 6th Annual CSU Spur Water in the West Symposium. The event, focused on “Next Gen Water,” includes keynotes and panel discussions on topics ranging from leadership and water system management to workforce and the future of Colorado’s outdoor industry. The symposium, the first to occur on the CSU Spur campus in north Denver, will take place in the Hydro building, which opened this past January. Vilsack will discuss the USDA’s work to build rural prosperity by supporting producer income, bolstering local and regional food supply chains, and creating jobs and economic opportunities in rural areas. In addition, he will talk about work to foster the next generation of leaders in food and agriculture, including through the USDA’s NextGen program, which includes geology and hydrology among more than 36 disciplines supported. Vilsack served as a strategic advisor for Colorado State University Spur and the Colorado State University System’s food and water initiatives from 2017-2021.
| Rural Advocate News | Wednesday November 8, 2023 |
Wednesday Watch List Markets Traders will continue to watch South American weather forecasts and after Tuesday, will keep an eye on outside markets and energy prices, in particular. Due to a systems upgrade, the U.S. Energy Department's weekly report of energy inventories and natural gas will not take place this week but will be back with updated data next week. Weather A system moving across the northern tier of the country is producing areas of isolated showers Wednesday. The system is pushing a cold front deeper into the Plains and Upper Midwest, where temperatures will fall closer to normal for this time of year. South of the front continues to be quite warm.
| Rural Advocate News | Tuesday November 7, 2023 |
Scott Calls for One-Year Farm Bill Extension David Scott (D-GA), the ranking member of the House Agriculture Committee, called on colleagues to extend the 2018 Farm Bill by one year. He made the call to offer certainty and support to farmers, ranchers, and foresters as “extremism” in the House Republican conference continues hobbling legislative efforts. “While we continue the bipartisan effort on the House Ag Committee to craft a new farm bill, the extremism and cynicism that’s taken hold of the House Republican Conference makes reauthorizing the farm bill by the end of this year unlikely,” Scott says. “Therefore, I’m calling on colleagues to support a one-year extension.” Scott calls it the responsible thing to do. It would allow U.S. farmers, ranchers, and foresters to operate with an element of certainty while they continue working on a new five-year farm bill. “Ag Committee Democrats remain committed to passing a bipartisan farm bill as quickly as possible,” Scott adds. *********************************************************************************** New National FFA Officer Team in Place The 2023-2024 National FFA Officer team was elected during the final session of the 96th National FFA Convention and Expo in Indianapolis. The new officer team was picked from 35 candidates and will lead the organization during the next year. Amara Jackson of Michigan is the new national president. Grant Norfleet of Missouri is the National Secretary. The new regional vice presidents come from Florida, Iowa, Ohio, and New Mexico. Each year during the national convention, six student members are elected by delegates to represent the organization as national officers. Through their year of service, the officers will interact with business and industry leaders, thousands of FFA members and teachers, corporate sponsors, government officials, education officials, the general public, and others. The team will also lead personal growth and leadership training conferences for FFA members throughout the country and set policies that help guide the future of the FFA and its members. *********************************************************************************** USDA Relief Program Hurts Larger Farmers USDA announced the Emergency Relief Program for 2022, ten months after the funding was initially signed into law. But the National Sorghum Producers say there are two major flaws in the program that make it a disaster in itself. First, USDA established a “progressive” payment factor to fit total payments within a budget that will severely harm full-time farm families. NSP says the “progressive” requirement will actually cut deepest on those who faced the largest losses. Second, although the law requires producer-paid premiums to be netted out for all producers, USDA’s new ERP only nets out such premiums for “underserved” farmers. The organization says the progressive aspect of the payments is no more than a “backdoor pay limit” that violates both Congressional intent and the letter of the law. They point out that structuring payments this way will cause immense harm to full-time farm families now and in the future. *********************************************************************************** FSA County Committee Elections Start This Week The USDA will begin mailing ballots this week for the Farm Service Agency county and urban county committee elections. Ballots will go to all eligible agricultural producers and private landowners across the country. Elections are occurring in certain Local Administrative Areas for those committee members who make important decisions about how federal farm programs are administered locally. Producers and landowners must return their ballots to their local FSA county office or have their ballots postmarked by December 4 to be counted. “In order for county committees to be effective, they must truly represent all who are producing,” says FSA Administrator Zach Ducheneaux. Producers must participate or cooperate in an FSA program to be eligible to vote in the county committee election. Each committee has from three to 11 elected members who serve three-year terms, and at least one seat representing a Local Administrative Area is up for election each year. *********************************************************************************** Educators to Receive Immersive AFBF Convention Experience The American Farm Bureau Foundation for Agriculture and Nationwide have teamed up to bring outstanding educators to the American Farm Bureau’s annual convention on January 19-22, 2024. Selected educators will receive an exclusive and immersive experience. They’ll receive free registration for the 2024 AFBF Convention in Salt Lake City, Utah, as well as financial reimbursement for travel, lodging, and meals while attending the event. The experience will connect teachers with farmers and ranchers from across the country to hear directly about modern farming. Highlights will include participation in local ag tours, networking with farmers, ranchers, and other professionals involved in ag education, and access to many other events. “We’re proud to support teachers from all across the country in several ways,” says Daniel Meloy, executive director of the AFBF Foundation. “We hope they’ll leave the 2024 convention with new ideas and information about agriculture to take back to their classrooms.” *********************************************************************************** Sheep Industry Annual Convention to Discuss Important Topics The 2024 American Sheep Industry Association’s Annual Convention will offer producers a closer look at two pieces of legislation that will greatly affect the industry. The opening session will feature officials from congressional agriculture committees discussing the new farm bill. Whether it’s passed by then or still getting hashed out, there will be plenty to talk about for America’s sheep producers. The speaker on January 13 from Superior Farms will talk about a petition in the city of Denver to prohibit the processing of livestock within city limits. If it passes, the petition will force the closure of Superior Farms’ lamb processing plant just minutes from the Sheraton Denver Downtown Hotel where the ASI convention takes place. “If they can pass such legislation in Denver, where they have as rich a livestock history as any in the American West, they can pass it anywhere in America,” says ASI Executive Director Peter Orwick.
| Rural Advocate News | Tuesday November 7, 2023 |
Tuesday Watch List Markets The U.S. trade deficit for September is due out at 7:30 a.m. CST and will allow USDA to have more specific export data later Tuesday morning. DTN will have a preview of the November WASDE report. USDA's long-term price projections will be out at 2 p.m., the same time as a report on U.S. consumer credit. Meanwhile, traders will keep an eye on South American weather conditions. Weather A system is moving out of the Pacific Northwest and through the Northern Plains early Tuesday, which will spread a mix of showers through the region and into the Upper Midwest Tuesday night. Some snow may accumulate in northern North Dakota and Minnesota as well as the southwestern Canadian Prairies. Temperatures for most of the U.S. will be quite warm for early November.
| Rural Advocate News | Monday November 6, 2023 |
Commerce Department Lowers Duties on Fertilizers The U.S. Commerce Department announced it is lowering duties placed on phosphate fertilizers imported from Morocco from 19.97 percent to 2.12 percent. The decision came after the agency conducted an administrative review of the duties, which is performed annually by retroactively examining the price of shipments and other factors. The National Corn Growers Association, a long-time vocal opponent of the duties, called it a big win for corn growers. “This victory was made possible by corn growers who spoke out against these duties as they faced skyrocketing fertilizer prices and product shortages at the behest of The Mosaic Company,” says NCGA President Harold Wolle. The issue stems from a decision by Commerce that favored a petition by Mosaic to impose duties on phosphate fertilizers imported from Morocco and Russia. Mosaic had claimed that unfairly subsidized foreign companies were flooding the U.S. market and selling their products at extremely low prices. *********************************************************************************** Court Orders EPA to Follow the Science The Eighth Circuit Court of Appeals granted a major victory to farmers when it ruled the Environmental Protection Agency must base its decisions on sound science and the law. The court was clear when it said the EPA failed to follow the law when it revoked chlorpyrifos tolerances, which effectively banned the pesticide. The American Farm Bureau Federation was one of several agriculture organizations that sued the EPA, asserting the agency ignored scientific evidence that proved the pesticide’s safety. “AFBF appreciates the Eighth Circuit Court of Appeals for recognizing that the Environmental Protection Agency failed to follow the law when it revoked the use of chlorpyrifos,” says AFBF President Zippy Duvall. “Farmers and ranchers are committed to growing safe and nutritious food, and they use science to guide decisions on how to manage pests and insects. Today’s decision tells the agency that it, too, must use sound science when drafting rules.” *********************************************************************************** Foreign Investment in U.S. Ag Land Foreign investment in U.S. agricultural land is a big topic. USDA’s latest research, based on 2021 data, shows over 40 million acres of American agricultural land are owned by foreign investors and companies. This corresponds to 3.1 percent of all privately-held agricultural land and 1.8 percent of all land in the U.S. Canadian investors own the largest portion of foreign-held agricultural land with 31 percent, or 12.8 million acres of the total, and 0.97 percent of all U.S. agricultural land. Many of the current concerns center around China. According to the latest data, China is ranked 18th in ownership of U.S. agricultural land with 383,000 acres. That’s less than one percent of total foreign-owned U.S. ag land and only three-hundredths of one percent of all ag land in the U.S. It reflects a total area of about one-third the size of Rhode Island or that of an average Ohio county. *********************************************************************************** China Importing a Lot of Soybeans in 2023 A University of Illinois FarmDoc report says China’s soybean imports are likely to stay high through the fourth quarter of this year, taking 2023 purchases to an all-time record. However, lackluster demand from hog farms is seen as reducing soybean purchases in early 2024. Traders and industry analysts say record Brazilian soybean supplies are expected to dominate China’s imports in the last three months of this year, citing better oil and meal quality. That will reduce demand for U.S. cargoes in the world’s biggest market for the oilseed. The larger share of Brazilian soybeans in China’s import basket is likely to add pressure on benchmark Chicago futures, which slumped almost 15 percent this year, snapping a four-year rally. The report says, “Typically, freshly harvested U.S. soybeans dominate the global export market after September as Brazil’s export season winds down.” But this year, China’s purchases from the U.S. are well below normal. *********************************************************************************** Second Annual FFA Future Leaders Fundraising Drive Underway Tractor Supply Company kicked off the second annual FFA Future Leaders Scholarship fundraising drive. The Tractor Supply Foundation established the fund last year with a $5 million commitment over five years, making it the largest agriculture scholarship of its kind. In 2022, the inaugural fundraising drive raised more than $1 million. The funds generated scholarships for 146 FFA students in 38 states, ranging from welding and electrical engineering to agricultural business, animal science, and others. Now through November 12, customers can make a donation at checkout, either in TSC stores or online at TractorSupply.Com. The goal is to raise another $1 million. The funds will generate $5,000 scholarships for students attending trade schools and two-year colleges to pursue a skilled trade or agriculture-related field. There will also be $10,000 scholarships for students pursuing agriculture-related four-year majors. After a successful 2022, the foundation can’t wait to see what happens this year. *********************************************************************************** Funds to Help Improve Agriculture Exports Senator Tammy Baldwin and colleagues delivered $9.3 million in Transportation Department funds to expand Port Milwaukee’s newly opened Agriculture Maritime Export Facility. The funding will support Phase 2 of the AMEF project, including the construction of two grain storage silos, purchasing of additional grain handling equipment, and the purchase of new equipment to move products between storage and vessels. “Port Milwaukee plays a critical role in connecting farmers and businesses to markets across the world,” Baldwin says. “This investment will strengthen maritime commerce, create jobs, and grow our economy.” Jackie Carter, director of Port Milwaukee, says she’s grateful for the continued support they get and appreciates the grant award for the Agriculture Maritime Export Facility. “The project will increase capacity and allow for the simultaneous handling of multiple agricultural commodities,” Carter says. “It will provide access for producers and growers in Wisconsin and the surrounding states to efficiently move products to international markets.”
| Rural Advocate News | Monday November 6, 2023 |
Top 5 Things to Watch - November WASDE, Flipping Temperatures Lead the Week OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Nov. 5. Note: All times listed below are in Central Standard Time (CST) unless otherwise mentioned. CST returned on Nov. 5. 1. WASDE Thursday: USDA's World Agricultural Supply and Demand Estimates and Crop Production reports are due out at 11 a.m. Our preview of the report will hit Tuesday or Wednesday, depending on the release of analyst estimates. On Thursday we will have WASDE numbers immediately after the reports are released, followed by updates with commentary and market reactions throughout the morning. 2. South America crop watch: Southern Brazil could get a brief respite from heavy and flooding rains. The forecast is still for wet weather throughout the month. Argentina has fared better with 23% of the corn crop planted. The Buenos Aires Exchange notes that 87% of the planted area is now good or normal, up from the previous week. 3. Fertilizer imports spark interest: With retail fertilizer prices steady to slightly higher according to DTN's weekly fertilizer reports, there will be growing interest in last week's announcement that U.S. Department of Commerce agreed to lower import duties on Moroccan phosphate fertilizer from 19.97% to 2.12%. 4. Weather warms for some: The Midwest starts the week with above-normal temperatures. But the weather pattern will stay active with additional showers possible, followed by cooler air. In the Northern Plains, the pattern will stay fairly active with occasional periods of showers, including some snow. The colder and wetter conditions will continue to make the remaining fieldwork difficult to accomplish. The Delta will see several systems more through during the week, bringing showers and more falling temperatures. 5. Economic reports to watch: Back from the weekend, you should be on standard time now or you may find yourself early for appointments. Monday starts with USDA's weekly report of grain export inspections set for 10 a.m., followed by Crop Progress at 3 p.m. Tuesday sees U.S. trade deficit for September at 7:30 a.m.; U.S. consumer credit report is at 2 p.m., and USDA long-term price projections at also 2 p.m. On Wednesday, because of a systems upgrade, the U.S. Energy Department's weekly report of energy inventories and natural gas will not take place that day -- or this week -- but will be back with updated data next week. Thursday sees USDA's weekly export sales at 7:30 a.m., the same time as U.S. weekly jobless claims and an update of the U.S. Drought Monitor. U.S. factory orders for September will be out at 9 a.m. USDA's WASDE and Crop Production reports are due out at 11 a.m. On Friday, Veterans Day is observed. U.S. government offices are closed, but markets and banks are open. CFTC data will not be released until Monday afternoon. University of Michigan's consumer sentiment index for early November will be released at 9 a.m. The deadline for a possible government shutdown is Nov. 17, one week away.
| Rural Advocate News | Monday November 6, 2023 |
Monday Watch List Markets Back from the weekend, traders will have set their clocks back an hour, checked the latest weather forecasts, especially from South America, and gotten caught up on world events. USDA's weekly report of grain export inspections is set for 10 a.m. CST, followed by Crop Progress at 3 p.m. Weather A pair of systems, one in the Great Lakes, and another in the Pacific Northwest, will be moving eastward on Monday, spreading showers through northern areas of the country. Precipitation is mostly rain, but some early morning light snow is falling in parts of North Dakota where it has been colder. Temperatures elsewhere are warm for early November.
| Rural Advocate News | Friday November 3, 2023 |
Ag Secretary Speaks at FFA National Convention Ag Secretary Tom Vilsack spoke to students, agricultural educators, and guests at the opening session of the 96th National FFA Convention and Expo during Thursday’s opening session. He also signed a Memorandum of Understanding with the organization formalizing a partnership to prepare more students for careers in food, agricultural science, natural resources, and related fields. He shared USDA’s vision to secure the future of American agriculture and opportunities for the next generation of agricultural leaders. He emphasized the importance of ensuring that farms of all sizes have the opportunity to succeed. “At National FFA, we’re preparing our students to be tomorrow’s leaders in agriculture,” says Scott Stump, CEO of the National FFA Organization. “We appreciate the Secretary’s dedication to agricultural education and FFA, which is why we were honored to present him with an Honorary American FFA Degree.” Vilsack said today’s youth are the ones who will create tomorrow’s food systems. *********************************************************************************** Corn Growers Support Fertilizer Industry Transparency The Iowa Corn Growers Association developed language they’d like added to the upcoming farm bill that would review competition and transparency in the fertilizer industry. The language would mandate a USDA assessment of the pricing practices used by fertilizer companies and the effects of the price increase on both farmers and consumers. The association points out that input costs for farmers have gone up drastically and are crucial topics at the grassroots level. This assessment would provide transparency in the fertilizer market and help farmers understand why these price increases keep occurring. Jolene Riessen, president of the ICGA, says, “We’re hopeful with the support of our Iowa delegation that this language will make it into the next farm bill, as it would provide USDA with the framework to start a comprehensive study and review of the fertilizer industry.” The study would paint a clearer picture of what’s happening in the industry. *********************************************************************************** American Angus Association Offering Internship Opportunities The American Angus Association is excited to offer internship opportunities for students to try a trial-run of potential career choices. The association has five internship positions available for the summer of 2024. It’s a ten-week program that’s designed to provide an immersive, hands-on experience that helps students to grow professionally as they “dip their toes” into the workforce. The five internships are being offered in marketing, publications, communications, events and junior activities, and in Angus Genetics, Inc. “What makes an internship at Angus so unique is that the Angus family believes in your ability to achieve a level of high success from day one,” says Brooklyn Botterman, 2023 events and junior activities intern. ‘The professional and personal growth that is acquired during your time with Angus is invaluable.” Students who want to apply should submit their resume, cover letter, and references by December 1. For more information, go to angus.org/careers. *********************************************************************************** Iowa Pork Campaign Involves Iowa State Football Players The Iowa Pork Producers Association has a marketing initiative involving aptly-named Iowa State football players. The campaign is called “Purchase Moore Hamman Bacon.” The Cyclone players are Myles Purchase, Tyler Moore, Tommy Hamman, and Caleb Bacon. The Iowa Pork Producers original social media post featured a photo of the players with their backs to the camera showing the last names on their jerseys, and several pounds of bacon and ham were pictured on a table behind them. The post has been viewed on X (formerly Twitter) more than 2.6 million times. “We’re overjoyed at the success of the ’Purchase Moore Hamman Bacon’ campaign,” says Iowa Pork Producers President Trish Cook. “We had hoped it would go viral, and it did in a big way.” The association will donate $4,000 worth of pork to pantries in each player’s hometown. The future of the promotion includes the addition of linebacker Alex Cook *********************************************************************************** Legislation to Study Barriers to Mental Health Senators Michael Bennet and Cynthia Lummis of Wyoming introduced legislation requiring the Government Accountability Office to study the barriers between farmers and ranchers and mental health care. “Our farmers and ranchers face uncertainty from forces beyond their control, and Congress needs to do more to help them access the mental and behavioral health care they need,” Bennet says. Volatile commodity prices, increased input costs, more frequent wildfires, severe drought, and other extreme weather events significantly affect farmers’ and ranchers’ mental health. Despite the demonstrated need for services, many rural communities face barriers to access those services. The GAO would be required to study the availability and accessibility of substance abuse treatment and mental health care providers trained to serve the needs of farmers, ranchers, agricultural workers, and their families. The study would also assess the barriers farmers and ranchers face to accessing care and successful programs at the state and local levels. *********************************************************************************** China Set to Import Record Amount of Wheat A University of Illinois Farmdoc report says China is set to import “record volumes” of wheat this year. Industry sources say rain damage to China’s wheat crop and subsequent worries over dry weather in exporting nations are driving Beijing’s appetite to buy while prices are low. Traders also say China’s frantic wheat buying is likely to support global prices, which have dropped more than a quarter through this year due to abundant supplies from Russia, the world’s top exporter. Overall, China’s 2023 imports are likely to reach 12 million tons, topping the previous year’s record of 9.96 million tons, with the avid buying expected to continue into 2024. Industry traders also say Beijing’s recent large purchases of Australian wheat could force rival importers such as Indonesia and Japan to seek alternatives from North America and the Black Sea region. China was the fifth-largest importer of U.S. wheat in Marketing Year 2022-2023.
| Rural Advocate News | Friday November 3, 2023 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the U.S. Labor Department releases nonfarm payrolls and the unemployment rate for October. Traders will keep close watch on weather and will soon wonder about the possibility of a government shutdown on November 17. Weather Though widespread frosts and freezes were recorded again this morning across the Southeast, temperatures are rising. A weak disturbance moving across the north may bring some occasional light showers from Montana to Michigan throughout the day, but most areas will stay dry.
| Rural Advocate News | Thursday November 2, 2023 |
US to Participate in Next Indo-Pacific Framework Negotiating Round A delegation of trade officials from the U.S. Trade Representative's office will participate in the seventh in-person negotiating round of the Indo-Pacific Economic Framework for Prosperity. The negotiations are planned for November 5-12, 2023, in San Francisco, California. In San Francisco, the IPEF partners will continue to make progress on negotiations towards high-standard outcomes under the pillars of trade, clean economy and fair economy. The U.S. interagency delegation will be co-led by Sarah Ellerman, IPEF Pillar Assistant United States Trade Representative for Southeast Asia and the Pacific, and Sharon H. Yuan, U.S. Department of Commerce Counselor. The framework will offer tangible benefits that fuel economic activity and investment, promote sustainable and inclusive economic growth, and benefit workers and consumers across the region, according to USTR. The first negotiating round was held in Brisbane, Australia, in December of last year, with other rounds taking place earlier this year. *********************************************************************************** Federal Urban Agriculture Committee to Meet this Month Members of the Urban Agriculture and Innovative Production Advisory Committee will meet this month. This is the committee's seventh meeting and is scheduled for November 29, 2023. The 2018 Farm Bill directed USDA to create the committee to advise the Agriculture Secretary on developing policies and outreach relating to urban, indoor, and other emerging agricultural production practices, as well as identify any barriers to urban agriculture. The committee is one of several ways that USDA is extending support and building frameworks to support urban agriculture, including issues of equity, climate resilience and nutrition access. Twelve members are appointed to the committee for one to three-year terms by the Secretary of Agriculture. The members represent a diverse set of expertise, including urban production, innovative production, higher education, non-profit, finance, business and economic development, supply chain, and other areas related to urban, indoor, and other emerging agriculture production practices. The public is invited to attend virtually by registering on the USDA website. *********************************************************************************** Registration Open for USDA’s 100th Agricultural Outlook Forum The Department of Agriculture this week opened registration for the 100th Annual Agricultural Outlook Forum. Titled “Cultivating the Future,” the event will be held in person at the Crystal City Gateway Marriott in Arlington, Virginia, February 15-16, 2024. All Forum sessions will also be livestreamed on a virtual platform. Agriculture Secretary Tom Vilsack says, “As we reflect on a century of agricultural progress, we’re not just celebrating our achievements, we're also preparing for an even better future.” USDA’s Agricultural Outlook Forum began in 1923 as a way to disseminate USDA data and analyses to farmers, so they had the tools to understand markets and make informed production decisions. Over time, the event has evolved into a unique platform where key stakeholders from the agricultural sector in the United States and around the world come together every year to discuss current and emerging topics and trends in the sector. Visit the Agricultural Outlook Forum website to register. *********************************************************************************** Apply Today to Become Beef Spokesperson The Beef Checkoff-funded Trailblazers program is seeking applications for its next class of beef advocates. Trailblazers, developed by the National Cattlemen's Beef, takes advocacy to the next level by giving participants the tools and training they need to promote beef to new audiences while addressing and correcting myths. NCBA's Chandler Mulvaney says, "If you are an advocate and seeking a chance to be empowered on your advocacy journey, apply today, and help safeguard the work of cattle farmers and ranchers." The Trailblazers program is looking for new spokespeople to participate in a year-long hands-on program designed to train, equip, and empower beef advocates. Selected candidates receive training to become expert communicators, excel in media interviews and understand how to build confidence in beef-related practices when talking to consumers. Applications will be accepted through December 8, and selected participants will be notified mid-January, upon completing the review process. Learn more and apply at NCBA.org. *********************************************************************************** CropLife America Announces CEO Search The CropLife America Board of Directors is opening the search for the organization's next president and Chief Executive Officer. CropLife America is the national trade association representing the manufacturers, formulators, and distributors of plant science solutions for agriculture and pest management in the United States. The president and CEO will be important in maintaining and enhancing existing member relationships. The successful candidate will have strong leadership skills, experience in a regulated industry, and advocacy with a broad array of stakeholders, including elected officials and regulators at both the federal and state level. The organization's members are deeply committed to their businesses, and the CEO must demonstrate a shared belief in and commitment to furthering the interests of the industry. The Board retained Kincannon & Reed to help guide the nationwide search process. CropLife America parted ways with former CEO Chris Novak in September. A statement from CropLife America at the time said, "Thee entire CLA Board of Directors thank Chris for his service to the organization over the past five years.” *********************************************************************************** 2023 Ozone Hole Ranks 16th Largest on Record The 2023 Antarctic ozone hole reached its maximum size at ten million square miles on September 21, which ranks as the 16th largest since 1979, according to annual satellite and balloon-based measurements made by NOAA and NASA. During the peak of the ozone depletion season from September 7 to October 13, the hole this year averaged 8.9 million square miles, approximately the size of North America. Paul Newman of NASA says, "It's a very modest ozone hole," adding, "Declining levels of human-produced chlorine compounds, along with help from active Antarctic stratospheric weather slightly improved ozone levels this year." The ozone layer acts like Earth's natural sunscreen, as this portion of the stratosphere shields our planet from the sun's harmful ultraviolet radiation. Every September, the ozone layer thins to form an “ozone hole” above the Antarctic continent. NOAA and NASA researchers monitor the ozone layer over the pole and globally using instruments aboard NASA's Aura, NOAA-NASA Suomi NPP and NOAA-20 satellites.
| Rural Advocate News | Thursday November 2, 2023 |
Wednesday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as U.S. weekly jobless claims, a report on third-quarter U.S. productivity and an update of the U.S. Drought Monitor. U.S. factory orders for September will be out at 9 a.m., followed by the U.S. Energy Department's weekly report of natural gas storage at 9:30 a.m. Weather Cold air that has been spreading through the country has reached its peak, with moderating temperatures in the Plains on Thursday that will continue eastward through the weekend. A system has moved into the Pacific Northwest and will bring showers there and to northern areas going into the weekend.
| Rural Advocate News | Wednesday November 1, 2023 |
House Republican Members Urge Swift Farm Bill Passage Republican lawmakers in the House of Representatives are urging the new speaker to pass a farm bill. In a letter last week to Speaker Mike Johnson, a group of 61 members told the speaker, “We urge you and the Conference at-large to be united in ensuring swift passage of a strong Farm Bill.” The letter notes that more than 92 percent of the nation’s planted acres are represented by Republican Members. Moreover, in 2022, the food and agriculture sectors contributed $7.4 trillion in economic activity, creating 43 million jobs, $2.3 trillion in wages, $718 billion in tax revenue, and $183 billion in exports, stemming from direct, indirect, and induced output. The lawmakers added, "The Farm Bill is a critical agenda item that must be addressed this Congress." Before he was elected speaker last week, Johnson revealed a priority list that included a December vote on the farm bill, pledging to "Begin negotiations as soon as possible.” *********************************************************************************** Report Reveals Global Agriculture Subsidies Total support to agriculture reached record levels of $851 billion per year during 2020-22 for the 54 countries covered by a new Organization for Economic Cooperation and Development. The Agricultural Policy Monitoring and Evaluation 2023 report shows the historically high level of support is nearly a 2.5-fold increase compared to two decades ago, though still behind the overall growth of production. Support remains highly concentrated in a few large producing economies, with China, India, the United States and the European Union representing 36 percent, 15 percent, 14 percent and 13 percent of total support provided, respectively. Individual producers received $630 billion per year in positive support over the 2020-22 period. The report tracks global government support provided to the agricultural sector, including subsidies, tariffs and other “market-distorting forms of support.” OECD Secretary-General Mathias Cormann says, “Such measures alter trade, investment and the location of production, undermining both the value of market access and the benefits of competitive markets and open trade.” *********************************************************************************** New Grants to Strengthen Local and Regional Food Systems USDA’s Agricultural Marketing Service Tuesday awarded more than $32 million for 98 grant projects to expand and strengthen local and regional food systems. The funding will be distributed through the Local Agriculture Market Program's Farmers Market and Local Food Promotion Programs and the Regional Food System Partnerships grant program. USDA Undersecretary Jenny Lester Moffitt says, "These grant programs support local and regional food producers by broadening marketing opportunities, such as farmers markets, local food hubs, and farm-to-institution programs." This year, the Farmers Market Promotion Program is funding 55 projects that support producer-to-consumer markets, such as farmers markets, roadside stands, agritourism activities, community-supported agriculture programs, and online sales. Through the Local Agriculture Market Program's Farmers Market, 33 projects have been funded to support local and regional food businesses that engage as intermediaries in indirect producer-to-consumer marketing. Through the Regional Food System Partnerships grant program, funds will support ten partnerships across eight states and the District of Columbia. *********************************************************************************** Tentative Agreement Allows for St Lawrence Seaway Reopening Unifor has reached a tentative agreement with St. Lawrence Seaway Management Corporation, ending a weeklong strike that halted shipping along the route. An agreement was announced at the start of this week following mediated negotiations on behalf of Ontario and Quebec members. St. Lawrence Seaway Management Corporation CEO Terence Bowles says, “We have in hand an agreement that’s fair for workers and secures a strong and stable future for the Seaway.” The tentative agreement covers roughly 360 Unifor members in Ontario and Quebec, who work in the supervisory and engineering group and the maintenance, operations, and clerical group. Specifics of the agreement were not released, but workers did return to work Monday morning. The Great Lakes-St. Lawrence Seaway is a deep draft waterway extending 2,300 miles from the Atlantic Ocean to the head of the Great Lakes at Duluth, Minnesota. The Seaway includes 15 locks – 13 in Canada and two in the United States. *********************************************************************************** USDA Examines ReConnect Program Populations Households in nonmetro areas are more than four times as likely to lack broadband internet access as households in metro areas. To help bring broadband to rural areas, USDA’s ReConnect program provides grants and loans to internet providers to help finance the costs of providing high-speed internet through broadband services. Funding areas served by projects must be rural and have 90 percent or more of households without access to broadband at minimum upload and download speeds. USDA Economic Research Service researchers examined ReConnect projects proposed in fiscal years 2019 and 2020, finding that the populations of areas eligible and areas of approved projects tended to have less formal educational attainment, more poverty, and more people over the age of 65. About 53 percent of the population in ReConnect-eligible areas had high school or less educational attainment, compared with 40 percent in ineligible areas. Likewise, the poverty rate was higher in eligible areas, as was the portion of the population over age 65. *********************************************************************************** Shell Eggs Broken Down 1% from Last Year USDA's latest monthly Egg Products report shows shell eggs broken is down one percent from last year. Released this week by USDA's National Agricultural Statistics Service, the report tracks eggs cracked by processors for egg products, including liquid whole egg, liquid whites, liquid yolk, and dried product. Shell eggs broken totaled 198 million dozen during July 2022, down one percent from July a year ago, and two percent below the 202 million dozen broken during the previous month. During calendar year 2022 through July, shell eggs broken totaled 1.38 billion dozen, up six percent from the comparable period in 2021. To date, cumulative total edible product from eggs broken in 2022 was 1.76 billion pounds, up six percent from 2021. Meanwhile, overall demand for shell eggs is mixed with most interest from marketers looking to build their stocks in anticipation of increased consumer demand into early November and the start of the Thanksgiving demand season for baking.
| Rural Advocate News | Wednesday November 1, 2023 |
Wednesday Watch List Markets Reports of manufacturing indices from around the world will roll in overnight with the U.S. index due out at 9 a.m. CDT Wednesday. The U.S. Energy Department's weekly report of energy inventories follows at 9:30 a.m. At 1 p.m., the Federal Reserve announces its decision on interest rates, expected to stay unchanged. At 2 p.m., NASS releases its monthly report on Fats and Oils. Weather Cold air has fully pushed into the country east of the Rockies early Wednesday with widespread frosts and freezes for most areas except those areas adjacent to the coast. Some lake-effect snow lingers in the eastern Great Lakes and Northeast early in the day but will wane later Wednesday. Dry conditions elsewhere will give potential for completing some late fieldwork during the start to the last month of fall.
| Rural Advocate News | Tuesday October 31, 2023 |
State of the Corn Economy In the third quarter of 2023, the corn sector wrapped up the 2022-2023 marketing year and entered the 2023-204 marketing year. Geopolitical tensions and international dynamics continue to be factors in the market. Looking ahead, a National Corn Growers Association webinar says the war in Israel could have larger implications for corn if it spreads throughout the Middle East. On the macroeconomic side, interest rates continue to rise while the economy remains strong. That makes it a challenge to forecast an economic landing, especially considering geopolitical factors. Despite widespread drought across the Corn Belt during the growing season, the U.S. is positioned to produce one of the three largest corn crops on record. That positions the U.S. to have enough grain needed to fulfill demand. Even with the strong competition in the world market, the outlook for demand from ethanol, feed, and exports is more positive than it was last year. *********************************************************************************** Organic Produce Sales and Volume Up Two Percent For the second quarter in a row, organic fresh produce grew slightly in year-over-year sales and volume in the third quarter of 2023. That’s according to a report issued by the Organic Produce Network. Overall, organic fresh produce dollar sales and volume rose by two percent and 1.9 percent, respectively, for Q3 in 2023 compared to the same time last year. “The growth in organic produce volume slightly outpacing conventional produce reflects the continued consumer interest in healthier and sustainable food choices,” says Tom Barnes, CEO of Category Partners. In the third quarter, 15 of the top 20 organic fresh produce categories posted increases in dollar sales compared to the same period last year. The organic berry category, including strawberries, blueberries, raspberries, and blackberries, led overall dollar sales with $461 million for the quarter, a 6.9 percent increase. Organic broccoli saw the largest sales jump at 14 percent above last year. *********************************************************************************** USGC Building Markets in Africa East Africa holds significant long-term growth potential for U.S. feed grains. Earlier this month, the U.S. Grains Council sent staff and members to the region as part of an engagement mission to discuss upcoming programming, current partnerships, and opportunities for American feed grains. The Council has been active in East Africa for over a decade, working to promote the development of a commercial poultry and feed industry in the region to meet the needs of a rapidly growing population. The USDA estimates by 2032 that Africa and the Middle East will account for 43 percent of the additional growth in world coarse grain imports. The team kicked off the trip by attending the tenth African Grain Trade Summit in Uganda. The conference brought together business leaders, policymakers, and other stakeholders from Africa to talk through issues and emerging trends in the grain sector. Other stops included Kenya and Tanzania’s Poultry Show. *********************************************************************************** Trends in Agricultural Land Ownership The landscape of land ownership has evolved over the past 25 years as a generational transfer of ownership takes place. A Farmers National Company report says a strong ag economy has driven the market higher for several years. Most landowners have seen steady increases in value during the past 25 years, but especially within the past three years. FNC says one market dynamic farmers can always count on is change. Politics, world events, and other factors will continue driving change in the agriculture economy and land values over the next 25 years. Generational transfer of land ownership will continue bringing changes to who owns the land. One constant in the market is the fact that they aren’t making more land available. FNC says the U.S. loses an average of 1.8 million acres of farmland every year, which will only add to the limited supply available and more change in the marketplace. *********************************************************************************** Deere Foundation Announces Anti-Hunger Grants The John Deere Foundation announced a series of grants totaling $19 million aimed at eliminating hunger by increasing access to food, helping resource-constrained farmers, and supporting global food systems. The grants go to the World Food Program USA, the One Acre Fund, and the Nature Conservancy. “We firmly believe that the world’s farmers deserve our collective support and advocacy if our goal is to realize the promise of the ‘Green Revolution,’” says Josh Jepsen, senior vice president and chief financial officer at Deere. The World Food Program received $5 million to strengthen the capacity of the United Nations World Food Program, the world’s largest humanitarian organization. One Acre Fund was awarded $7.5 million to accelerate its work to ensure every family farm has the knowledge and means to be successful. The Nature Conservancy received $6.5 million to promote natural climate solutions like forest restoration and conservation in key regions around the world. *********************************************************************************** Corn and Soybean Export Sales Surge USDA says corn sales to overseas buyers surged, and soybean sales hit a marketing-year high in the seven days ending on October 19. Corn export sales totaled 1.35 million metric tons, up 53 percent over the previous week and 22 percent from the prior four-week average. An agency report says Mexico was a big buyer of U.S. corn, purchasing 762,400 metric tons, followed by Colombia and Japan. Exports during the week were 483,700 tons, down six percent week-to-week and the lowest since the marketing year began on September 1. Soybean sales jumped to 1.38 million metric tons during the week, one percent above the previous week and 43 percent over the four-week average. That’s also the largest amount since the marketing year began. China was the largest buyer at 1.17 million tons. Soybean exports hit a marketing-year high at 2.38 million tons. Wheat sales dropped 43 percent from the prior week.
| Rural Advocate News | Tuesday October 31, 2023 |
Biden, Cabinet, Heading to Rural America President Joe Biden will travel to Minnesota to lead his Administration's Investing in Rural America Event Series. Over the course of two weeks, President Biden, Cabinet members, and Senior Administration Officials will barnstorm across the country. The events will promote investments in climate-smart agriculture, bringing new revenue to farms, increased economic development in rural towns and communities and more opportunity throughout the country, according to the White House. During the Event Series, President Biden and leaders across the Administration will travel to rural communities across the country. This includes rural communities leveraging Bipartisan Infrastructure Law funding to support critical infrastructure such as high-speed internet, safe roads and bridges, modern wastewater systems, clean drinking water, and reliable and affordable electricity. Beyond the Minnesota visit with Agriculture Secretary Tom Vilsack, Vilsack will also speak at the National FFA convention this week in Indianapolis. Other administration officials will travel to Wisconsin, Michigan, New Mexico, Arizona, Colorado, Washington State, Oregon and Georgia, among other states. *********************************************************************************** September Milk Production Down Slightly USDA’s latest Milk Production report shows production in the 24 major states during September totaled 17.5 billion pounds, down slightly from September 2022. August revised production, at 18.1 billion pounds, was down 0.7 percent from August 2022. The August revision represented a decrease of 73 million pounds or 0.4 percent from last month's preliminary production estimate. Production per cow in the 24 major States averaged 1,960 pounds for September, three pounds above September 2022. The number of milk cows on farms in the 24 major States was 8.91 million head, 16,000 head less than September 2022, and 2,000 head less than August 2023. Milk production in the United States during the July - September quarter totaled 56.1 billion pounds, down 0.7 percent from the July - September quarter last year. The average number of milk cows in the United States during the quarter was 9.38 million head, 41,000 head less than the April - June quarter, and 33,000 head less than the same period last year. *********************************************************************************** $3 Million Available for Producers Impacted by 2022 Natural Disasters The Department of Agriculture will provide more than $3 billion to commodity and specialty crop producers impacted by natural disasters in 2022. Eligible impacted producers can apply for financial assistance through the Emergency Relief Program 2022. The program will help offset the financial impacts of crop yield and value losses from qualifying disasters in 2022. Farm Service Agency Administrator Zach Ducheneaux (DOO-sheh-know) says, “2022 was another year of weather-related challenges — for some, the third consecutive year or more in a row.” ERP 2022 covers losses to crops, trees, bushes and vines due to qualifying, calendar year 2022 natural disaster events, including wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze –including a polar vortex, smoke exposure, excessive moisture, qualifying drought and related conditions. Producers can apply for ERP 2022 starting October 31, (today). The application deadline has not yet been determined and will be announced at a later date. *********************************************************************************** Branstad, Westman to Receive USMEF Awards Terry Branstad, former U.S. ambassador to China and longtime governor of Iowa, has been selected to receive the U.S. Meat Export Federation's Michael J. Mansfield Award. USMEF established this award in recognition of the U.S. Senate majority leader and ambassador to Japan, whose five decades of government service advanced U.S. trade relations throughout the world. Bill Westman will receive the USMEF Distinguished Service Award. This award honors outstanding figures in the red meat industry who exemplify the exceptional, individual dedication responsible for the federation's success. Westman had a 29-year career with the USDA Foreign Agricultural Service, served as senior vice president of international affairs for the North American Meat Institute and is now president of William Westman and Associates LLC, a boutique consulting firm specializing in agricultural trade policy, export market development, and strategic planning. The awards will be presented November 9, at the USMEF Strategic Planning Conference in New Orleans. *********************************************************************************** Syngenta Group Recognized as Top Agriculture Employer Syngenta Group was again recognized as one of the globe's top five leading employers in the 2023 Science Careers Top Employers Survey. Syngenta Group employs 59,000 people across more than 100 countries and works towards the challenging goal of feeding the eight billion people on Earth. A Syngenta spokesperson says, "We are excited that Syngenta Group is again being named as the #1 agricultural employer." Recently, Syngenta Seeds held a grand opening for its R&D Innovation Center in Malta, Illinois, which joins a connected, modern ecosystem of more than 150 Syngenta R&D and production sites worldwide and exemplifies the company's $1.48 billion USD annual investment globally. Syngenta Group, registered in Shanghai, China and with its management headquarters in Switzerland, includes four business units – Syngenta Crop Protection, headquartered in Switzerland, Syngenta Seeds, headquartered in the United States, ADAMA headquartered in Israel, and Syngenta Group China. *********************************************************************************** Weekly Gas and Diesel Prices Fall Again The nation's average gasoline price fell 5.3 cents last week to $3.45 per gallon, according to GasBuddy. The national average is down 36.3 cents from a month ago and 27.4 cents per gallon lower than a year ago. The national average diesel price fell 3.4 cents last week and is $4.43 per gallon—86 cents lower than one year ago. GasBuddy's Patrick De Haan says, "The West Coast has been home to some of the largest declines, with California seeing an impressive 80-cent drop in the last four weeks, dispelling the myth that prices don't fall as fast as they go up." De Haan says the national average gas price could drop another 10-20 cents in the weeks ahead. However, any jolt in the Middle East still holds the potential to disrupt current trends, according to De Haan. Oil markets have struggled to hold onto any momentum in recent weeks, and demand declined one percent last week.
| Rural Advocate News | Tuesday October 31, 2023 |
Tuesday Watch List Markets Keeping with the Halloween theme on Tuesday, the Federal Reserve will begin a two-day meeting and may spook markets with a quarter-percent rate hike on Wednesday, but general expectations are for no change this time around. At 7:30 a.m. CDT Tuesday, the U.S. Labor Department will release its employment cost index for the third quarter, followed by a report of U.S. consumer confidence at 9 a.m. Weather Very cold temperatures continue to fill in east of the Rockies on Tuesday, producing widespread frosts and freezes for all but the Southeast. A small system is moving through the Midwest, producing areas of light, but briefly intense snow.
| Rural Advocate News | Monday October 30, 2023 |
Top 5 Things to Watch - More Wheat Winners, Weather From North to South 1. Cold hits Northern harvest: With some areas of North America already seeing snow and frigid conditions, crop harvest in those areas gets trickier. We will examine the results of weather that turn combines into ersatz snowblowers. Mike and Chandra Langseth, one of our View From the Cab families, have already been preparing for the challenge. 2. South American crop conditions: El Nino usually means drier weather for much of Brazil. But "drier" in an area that normally receives too much rainfall this time of year may not be as bad for the crop as one thinks. We're watching how much conditions will influence the current crop and prospects for the safrina (second-crop) corn. 3. Fertilizers and wars: We've written quite a bit in the past about how the war in the Black Sea affects fertilizer shipments out of Russia and other areas. As it happens, Israel is a fairly important supplier of phosphates. We'll be keeping an eye on all those outlying influences, as well as our usual reporting on fertilizer prices, found in our DTN Retail Fertilizer Trends column. DTN subscribers can see even more detailed price information in their Fuels and Fertilizers or Fertilizers segments, depending on their specific product. 4. More wheat winners: We'll continue to feature the winners in the National Wheat Foundation 2023 contest. Now in its eighth year, the NWF's National Wheat Yield Contest is designed to encourage wheat growers to strive for high yield, quality and profit while trying new and innovative management strategies. DTN/Progressive Farmer is the official media outlet of the competition. Contest partners include: John Deere, WestBred, BASF, U.S. Wheat Associates, Croplan, Eastman, The McGregor Companies, AgriMaxx, Ardent Mills, BushelFarm, Dyna-Gro, GrainSense, Limagrain Cereal Seeds, Mennel, North Carolina Small Grain Growers Association, Ohio Corn&Wheat, PlainsGold, UniSouth Genetics, UPL, Grain Craft, Grow Pro, Kansas Wheat, Michigan Wheat, Miller Milling, North Dakota Mill, and Northern Crops Institute. 5. Economic reports to watch: (All times CDT) Monday -- USDA's weekly grain export inspections is set for 10 a.m., followed by Crop Progress at 3 p.m. Tuesday -- Happy Halloween! The Federal Reserve begins its two-day meeting that may spook markets with a quarter-percent rate hike on Wednesday. The U.S. Labor Department releases its employment cost index for the third quarter at 7:30 a.m., followed by the U.S. consumer confidence report at 9 a.m. Wednesday -- We'll check manufacturing indices from around the world, with the U.S. index due out at 9 a.m. The U.S. Energy Department's weekly report of energy inventories follows at 9:30 a.m. At 1 p.m., the Federal Reserve announces its decision on interest rates. At 2 p.m., NASS releases its monthly report on Fats and Oils. Thursday -- USDA releases its weekly export sales report at 7:30 a.m., the same time as U.S. weekly jobless claims, a report on third-quarter U.S. productivity and an update of the U.S. Drought Monitor. U.S. factory orders for September will be out at 9 a.m., followed by the U.S. Energy Department's weekly report of natural gas storage at 9:30 a.m. Friday -- We wrap up the week with the U.S. Labor Department nonfarm payrolls and the unemployment rate for October, hitting at 7:30 a.m.
| Rural Advocate News | Monday October 30, 2023 |
Monday Watch List Markets Back from the weekend, traders will catch up on the latest news from Israel and Ukraine, as well as the latest weather forecasts. USDA's weekly grain export inspections report is set for 10 a.m. CDT, followed by Crop Progress at 3 p.m. when USDA will post its first winter wheat crop ratings for the new season. Weather A strong cold front moved through most of the Plains and Midwest over the weekend, spreading areas of heavy rain and some snow. The front will continue into the Southeast Monday with weakening rain showers. Very cold air filtering in behind the front will cause widespread frosts and freezes for the bulk of the country by midweek. A disturbance following behind the front will bring light snows to the Midwest tonight and Tuesday.
| Rural Advocate News | Friday October 27, 2023 |
Iowa Delegation Wants Reduction on Fertilizer Duties Iowa Senators Chuck Grassley and Joni Ernst are calling on the Department of Commerce to lower the countervailing duties on phosphate fertilizers from Morocco. The push comes from the Court of International Trade’s recent remand of DOC’s subsidy calculation. “We ask that Commerce carefully consider and follow the Court’s decision in Commerce’s recalculation of the subsidy amount, both in its final determination in the investigation and its administrative review,” the Iowa delegation said in a letter. “Reducing the subsidy rate would provide welcome relief for U.S. farm suppliers and their customers, who are America’s family farmers.” Grassley and his colleagues cited promising preliminary findings from the DOC on potentially reducing the subsidy rate by about 5.5 percent. Since the Biden administration boosted duties on Moroccan phosphate fertilizers, their supply across the U.S. has dropped, placing an undue financial burden on farmers. The move drove already high input costs up even further. *********************************************************************************** Rabobank: Global Fertilizer Market Set to Recover A recent report from Rabobank says the outlook for global fertilizer markets is positive in the coming years. However, there are some challenges and potential risks to monitor. The global fertilizer market is recovering, with an estimated increase in usage of around three percent this year after a seven percent drop in 2022 because of significant market complications. The Rabobank Affordability Index shows a positive outlook for fertilizer purchasing in 2024, with an expected increase of almost five percent next year. The Farm Input Division at Rabobank says nitrogen growth grew two percent this year, phosphate 3.9 percent, and potash was up five percent. There is a potential impact from the Israel-Hamas War as Israel is a sizable supplier of phosphate and potash. Israel accounts for about three percent of the world’s phosphate exports and eight percent of the global potash supply. Currently, there is sufficient availability and alternative supply sources. *********************************************************************************** Farm Groups Applaud More OFF Act Sponsors Farm groups like Competitive Markets Action, the Organization for Competitive Markets, R-CALF USA, and others applauded seven new sponsors of the Opportunities for Fairness in Farming Act. The groups say the OFF Act would restore accountability and transparency to agricultural checkoff programs. In total, the OFF Act now has more bipartisan support than in any previous Congress, including 15 co-sponsors in the House and six in the Senate. “The OFF Act is backed by more than 20,000 American family farmers who are sick and tired of seeing their own checkoff dollars put farmers out of business,” says Representative Nancy Mace (R-SC). The groups say recent debate over the 2024 Ag Appropriations Bill has increased interest in oversight of the 22 government-mandated checkoff programs. They have long been plagued by accusations of corruption and misuse of funds. They also say the new bill sponsors show that momentum is rising for their reform. *********************************************************************************** Alltech Survey Finds Optimism Regarding Sustainable Food System Agri-food leaders around the world believe the industry can work together to create a better, more sustainable food system. That’s according to the Alltech Sustainability Insights report. “Our goal was to listen to the voices of our industry and its stakeholders and develop a robust, future-facing program of insights that are relevant, ambitious, and genuinely impactful,” says Tara McCarthy, global vice president of EST at Alltech. Some of the findings include four out of five respondents agreeing that climate change will make food production more difficult, but perspectives differ across regions. Most respondents agree that regulation is putting pressure on all areas of the supply chain. “Our industry is navigating extraordinary times, but the opportunities for positive impact are even more unprecedented,” says Dr. Mark Lyons, president and CEO of Alltech. “Imagine the possibilities of working toward shared goals of providing nutrition for all, revitalizing economies, and replenishing our natural resources.” *********************************************************************************** NCC Elects New Officers The National Chicken Council has installed the four officers that will guide the organization through 2024. The installation took place at NCC’s 68th Annual Conference in Washington, D.C. Randy Day, a retired CEO and special adviser to the Perdue Farms Board of Directors, will serve as the 2023-2024 Chairman. Randy led Perdue’s senior leadership team before retiring as CEO after 43 years. He began a career with Perdue Farms in 1980, holding various positions of increasing responsibility in the company’s two operating divisions. Peco Foods Chief Operations Officer Bill Griffith will serve as Vice Chairman, bringing more than 25 years of management experience in the food industry. David Jackson, COO of Simmons Foods, is the NCC Secretary-Treasurer. Mike Brown was also elected to his 13th term as NCC President. “I look forward to working with the new officers to continue advancing the industry’s interests and achieve our shared goals,” Brown says. *********************************************************************************** Ethanol Production Trending Higher The Energy Information Administration reports that ethanol production rose to its highest level in two months, and inventories rose during the seven days ending on October 20. Ethanol production increased to an average of 1.04 million barrels a day. That’s up from 1.03 million the previous week and the highest level since August 18. In the Midwest, output narrowly rose to 987,000 barrels a day from 985,000 the previous week. That’s also the highest in the Midwest since mid-August. East Coast production rose from 10,000 to 12,000 barrels a day, while West Coast output improved from 9,000 the prior week to 10,000 barrels a day. Gulf Coast production was unchanged at 17,000 barrels a day, while the Rocky Mountain region was the only drop, falling by 1,000 barrels a day to 13,000. Ethanol stockpiles through the week of October 20 rose to 21.39 million barrels, up from 21.1 million a week earlier.
| Rural Advocate News | Friday October 27, 2023 |
Friday Watch List Markets A report on U.S. personal incomes and consumer spending in September will be out at 7:30 a.m. Friday, the same time as the personal consumer expenditures index for September, the Federal Reserve's preferred inflation indicator. Traders continue to keep a close watch on South American weather as row crop planting progresses. Weather A cold front is starting to move south and east through the middle of the country and that is bringing some very cold air into the Plains and western Midwest. The front will light up with areas of showers and thunderstorms from Texas to the Great Lakes throughout the day, which could be heavy again in Texas. Winds behind the front are breezy.
| Rural Advocate News | Thursday October 26, 2023 |
AFBF Congratulates Johnson on Speaker Election American Farm Bureau Federation President Zippy Duvall welcomed the election of Representative Mike Johnson, a Louisiana Republican, to be Speaker of the House. Johnson was the fourth Republican nominee for the post following the ousting of former speaker Kevin McCarthy. Duvall of AFBF says, "Speaker Johnson has a strong history of supporting America's farmers and ranchers, which has earned him the 'Friend of Farm Bureau' award multiple times." Johnson represents Louisiana's 4th Congressional district, encompassing much of the state's western half, and was first elected to Congress in 2016. Johnson calls the election an "honor of a lifetime" while proclaiming, "We will restore trust in this body.” Duvall of Farm Bureau adds,” America’s families are relying on Speaker Johnson, and Congress, to focus on pressing needs, including completion of fiscal year 2024 appropriations and passage of a farm bill.” *********************************************************************************** U.S. Household Food Insecurity Increased in 2022 New research from USDA finds that in 2022, 12.8 percent of U.S. households were food insecure at some time during the year. Food insecure means they had difficulty providing enough food for all their members because of a lack of resources. The prevalence of food insecurity in 2022 was statistically significantly higher than the 10.2 percent recorded in 2021 and the 10.5 percent in 2020. Very low food security is a more severe form of food insecurity, and the 2022 prevalence of very low food security was 5.1 percent, statistically significantly higher than the 3.8 percent in 2021 and the 3.9 percent in 2020. In response, Agriculture Secretary Tom Vilsack says, “The 2022 Household Food Security in the United States report is a sobering reminder that, while the vast majority of Americans are able to affordably feed themselves and their families, too many of our neighbors struggle to put healthy food on the table.” *********************************************************************************** USDA Publishes New Organic Livestock and Poultry Standards Agriculture Secretary Tom Vilsack Wednesday previewed the Organic Livestock and Poultry Standards final rule. USDA says the new rule establishes clear, strong and consistent standards for organic livestock and poultry production, levels the playing field for organic livestock farmers, ranchers and businesses and promotes fairer, more competitive markets for their products, while providing consumers with more transparency about their purchases. Vilsack says, "USDA is creating a fairer, more competitive and transparent food system." Strong interest from consumers and the organic industry drove the change. USDA encouraged the public to comment, and USDA received more than 40,000 written comments, all of which were carefully reviewed to inform drafting of this final rule. USDA also held a listening session in August 2022 to hear public comments on the proposed rule. The final rule outlines standards for six key areas, including outdoor space requirements, indoor and outdoor living conditions, poultry stocking densities, preventative health care, physical alterations, and transport, handling and slaughter. *********************************************************************************** Bill to Support Organic Dairy Farmers Senator Tammy Baldwin introduced legislation to support organic dairy farmers and help them address economic challenges like feed shortages and increased costs. The Organic Dairy Assistance, Investment, and Reporting Yields Act of 2023 will increase investments in the organic dairy industry to ensure resiliency and longevity and works to improve data collection for organic milk production to enhance price accuracy and transparency. The Wisconsin Democrat says, "In the face of recent headwinds, I'm committed to delivering the support our dairies need to keep their operations open for generations to come." The legislation would extend emergency assistance to organic dairy farmers facing losses and invest $25 million annually in dairy infrastructure investments. Additionally, the bill directs USDA to the viability of an organic safety net program, which would get aid to farmers faster when disasters hit in the future. Known as the O DAIRY Act of 2023, the bill has broad support from the organic dairy industry, including the Organic Farmers Association. *********************************************************************************** NCGA Launches 2024 Scholarship Program The National Corn Growers Association Wednesday announced the launch of its annual scholarship program for the 2024 academic year. The program is designed to support students who are passionate about agriculture and making a positive impact in their community. NCGA will award scholarships to deserving students who demonstrate academic excellence, leadership and community involvement. The scholarships are open to students attending technical school, undergraduate universities, and pursuing graduate-level studies. NCGA Membership & Consumer Engagement Action Team Chair Dan Nerud says, “We believe that education is critical in shaping the future of the agriculture industry, and we are committed to providing opportunities for students to achieve their academic and career goals To apply for the scholarship, students must complete an online application. Submissions are now being accepted, and the deadline to complete them is January 31, 2024. All eligible students are encouraged to apply. For more information and to apply, visit NCGA.com/scholarships. *********************************************************************************** NCBA 2024 Environmental Stewardship Award Nominations Open Nominations are now open for the National Cattlemen’s Beef Association Environmental Stewardship Award. Established in 1991, the Environmental Stewardship Award Program annually recognizes outstanding stewardship practices and conservation achievements of cattle producers across the nation. NCBA President Todd Wilkinson says, "This award celebrates the innovative efforts our industry is undertaking to protect the environment, engage with communities and remain profitable." Any individual, group or organization is eligible to nominate one individual or business raising or feeding cattle. Individuals and families may not nominate themselves, although nominees may be involved in preparing the application. Past nominees are encouraged to resubmit applications; however, previous winners may not reapply. Along with a typed application, one nomination letter and three letters of recommendation highlighting the nominee's leadership in conservation are required, and the deadline is March 8, 2024. Nominees do not have to be members of NCBA but should support the objectives of their state and national organization. For more information, visit environmentalstewardship.org.
| Rural Advocate News | Thursday October 26, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as U.S. weekly jobless claims, durable goods orders for September, third-quarter U.S. GDP and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m. and traders will continue to keep an eye on the latest weather developments, especially in South America. Weather The zone of precipitation that has been active across the middle of the country all week continues on Thursday with areas of heavy rain from Texas into the Midwest and heavy snow in the Northern Plains, though a little farther south than previous days. Very cold temperatures are pouring into the Northern Plains and will sweep south and east going into next week.
| Rural Advocate News | Wednesday October 25, 2023 |
USDA Boosts Investments in International Trade Ag Secretary Tom Vilsack says USDA is providing $2.3 billion to help American producers maintain and develop markets for their commodities. Some of the funds will use U.S. commodities to boost international food aid. A request for the funding initially came from the Senate Ag Committee’s leadership, so USDA will be utilizing funds from the Commodity Credit Corporation to address challenges related to trade and food insecurity impacting U.S. farmers and the international community. USDA will use $1.3 billion for the Regional Agricultural Promotion Program and support for specialty crop industries to diversify export markets. One billion will go to help address global hunger. “The Commodity Credit Corporation continues addressing the needs of American producers as significant and unpredictable challenges arise,” Vilsack says. “Those challenges impact the international commodity markets and global food insecurity in the face of an ongoing conflict.” The goal is to strengthen the U.S. position in global markets. *********************************************************************************** Ag Responds Positively to Funds for Market Development The American Soybean Association joined other groups in applauding the USDA’s efforts to strengthen U.S. trade and food aid. USDA announced a total of $2.3 billion in funds going toward those efforts. “Having these funds to sufficiently support export promotion programs and address hunger are things ASA and soy growers have consistently championed,” says ASA president Daryl Cates. Jim Mulhern, President and CEO of the National Milk Producers Federation, says, “If these funds are distributed to underfunded sectors like dairy, this will put us in a position to be more competitive globally.” Dan Halstrom, president and CEO of the U.S. Meat Export Federation, says these new investments in foreign market development are “very timely and much appreciated.” Ryan LeGrand, President and CEO of the U.S. Grains Council, says, “We look forward to expanding exports of corn, sorghum, barley, and their co-products and are grateful for this new source of funding.” *********************************************************************************** USDA Extends Deadline for Milk Loss Assistance Program The USDA is extending the application deadline for the Milk Loss Program to Monday, October 30. The agency wants to allow more time for eligible dairy farmers to apply for much-needed weather-related disaster recovery assistance. The program compensates dairy producers who dumped or removed milk without compensation from the commercial milk market in 2020, 2021, and 2022 because of qualifying weather events. Eligible causes of loss also include consequences of those weather events, such as power outages, impassable roads, and infrastructure losses. “We recognize that MLP benefits are critical to the financial recovery of dairy operations significantly impacted by weather-related disasters that inhibited their ability to deliver or store their milk,” says FSA Administrator Zach Ducheneaux. “We know that dairy farming is a 24/7, 365-day commitment and hope this MLP application deadline extension ensures that all dairy farmers in need of assistance will now have adequate time to apply for help.” *********************************************************************************** Two Positive HPAI Cases in Iowa The Iowa Ag Department and the USDA’s Animal and Plant Health Inspection Service have confirmed two positive cases of Highly Pathogenic Avian Influenza. One of the sites is a commercial turkey flock, and the other is a mixed species backyard flock. Both agencies remind commercial and backyard owners to prevent contact between their flocks and all wild birds. Sick birds or unusual deaths among birds must be reported to state and federal officials. Other indications may include lethargy or no appetite, decreasing egg production - soft, thin-shelled, or misshapen eggs - swelling in the head or eyelid area, difficulty breathing or coughing, sneezing, falling down, and diarrhea. If a producer in any state suspects HPAI in a flock, they should contact their veterinarian immediately and their state ag department. The CDC says the recent viral detection in birds doesn’t pose a public health concern, and it’s safe to eat poultry products. *********************************************************************************** Student Leaders Prepping for National FFA Convention FFA members and supporters from across the country will celebrate agriculture and agricultural education next week at the 96th National FFA Convention and Expo in Indianapolis. The time-honored tradition will take place November 1-4. Over 65,000 FFA members from the U.S., Puerto Rico, and the U.S. Virgin Islands are expected to attend. The general sessions will take place at Lucas Oil Stadium. Convention events begin on the first day when Expo attendees can explore various career pathways in agriculture and attend leadership workshops. FFA members and advisors can also take their skills to the next level in student and teacher workshops. They’ll hear from industry leaders, motivational speakers, and many other guests. Members will get to discuss their agricultural projects on the new Student Showcase Stage. Service will be front and center at the event as members will participate in service projects at the convention center and various sites in Indianapolis. ********************************************************************************** IA Ag Secretary on EPA’s Herbicide Strategy Mike Naig, Iowa’s Secretary of Agriculture, submitted comments to the Environmental Protection Agency raising serious concerns about its draft Endangered Species Act herbicide strategy. Iowa is a national leader in crop production, so the secretary submitted written comments from the perspective of Iowa farmers and the state’s agriculture community. Naig says he appreciates the agency’s efforts to comply with the Endangered Species Act while still allowing farmers access to crop protection tools. However, he says the proposed strategy is too complex and would be an incredible burden on farmers and pesticide applicators. He also says the EPA must consider the economic impact of the proposed strategy and conduct a thorough economic analysis. “Farmers have proven time and again that they can be productive while also setting conservation records,” Naig says. “This burdensome strategy will jeopardize both those accomplishments.” EPA should also not rush the process to reach a final rule.
| Rural Advocate News | Wednesday October 25, 2023 |
Wednesday Watch List Markets A report on U.S. new home sales in September will be out at 9:00 a.m. CDT, followed by the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. At 2 p.m., USDA releases its monthly cold storage report. Also, the Bank of Canada is expected to hold rates steady at 5% Wednesday. Traders continue to have interest in South American weather reports. Weather Active weather continues Wednesday with widespread areas of showers from the Plains into the Midwest due to several features and disturbances in the area. Cold air is filling into the Northern Plains, leading to heavy snow across Montana and North Dakota throughout Wednesday, continuing into Thursday. Some windy spots are possible as well. Heavy rain in parts of the Southern Plains may lead to flooding.
| Rural Advocate News | Tuesday October 24, 2023 |
U.S. Soybean Meal Exports Expected to Reach Record High USDA’s Foreign Agriculture Service expects record soybean meal exports for marketing year 2022-23, at an estimated 13.2 million tons. USDA says increased soybean crush to supply feedstock oil for growing U.S. biomass-based diesel production is behind the expansion. The new record came from substantial expansion in shipments to the European Union and Vietnam as drought in Argentina, usually the world's largest soybean meal exporter, severely reduced its exportable supplies. Additionally, U.S. soybean meal exports to the Philippines, Colombia, and Mexico held firm despite a strong dollar. In marketing year 2023/24, U.S. soybean meal exports are forecast to reach a new record of 13.9 million tons. U.S. export prices are likely to remain competitive with South American supplies as the United States continues to produce more soybean meal than will be needed domestically, ensuring growing supplies are available to the global market. In the four previous marketing years, exports were relatively flat, hovering over 12 million tons per year. *********************************************************************************** Study Offers Farmer Viewpoint on Precision Tech A new study from South Dakota State University investigates farmers’ viewpoints on the most influential factor behind adopting new technologies and practices: profitability. In the study, researchers highlighted eight widely adopted precision ag technologies, including auto-steering and guidance, automatic section control, satellite/aerial imagery, unmanned aerial vehicle/drone imagery, variable rate fertilizer application, variable rate seed and application, variable rate pesticide application and variable rate irrigation application. The most widely adopted precision ag technologies include auto-steering and guidance, which fit under the georeferencing technology category. Satellite imagery was the next most widely adopted technology, with nearly 60 percent of all farmers having used it. Drones and unmanned aerial vehicles fall under a similar category to satellite imagery. However, drones are much less prevalent, with an adoption rate of 26 percent. To further facilitate precision ag adoption, the research team noted that financial support during the first few years of adopting a new technology could be beneficial. *********************************************************************************** USDA Conducting Sheep Study in 2024 USDA's National Animal Health Monitoring System conducts a national sheep study approximately every ten years, and will do so again next year. The Sheep 2024 Study will support industry groups and research efforts with new information on sheep health and management. The study consists of two phases and includes biological sampling and two questionnaires. A random selection of almost 5,000 sheep operations located in specific states will be asked to participate. While participation is voluntary, it is important to obtain high-quality data. The National Agricultural Statistics Service will contact selected participants in January and February 2024. Participants will be asked to provide their contact information to complete the second phase of the study, which begins in April 2024 and continues through July 2024. Information from the study will help develop new treatments, controls and prevention mechanisms for sheep diseases. The results will also guide future research and education. *********************************************************************************** PPP loans provided $5.8 billion to U.S. farm sector in 2020 Researchers at USDA’s Economic Research Service estimate that the Paycheck Protection Program provided $5.8 billion to the farm sector in 2020. The PPP was a non-USDA assistance program for small businesses adversely affected by the pandemic. Total Federal Government payments to the farm sector in 2020 were $45.6 billion, meaning that PPP payments were 13 percent of total payments. The Small Business Administration administered the PPP, providing forgivable loans to eligible small businesses and certain other entities to allow them to cover some of their payroll costs. The PPP loans were forgiven in full if the loan was used on eligible expenses, including at least 60 percent on payroll expenses. Agricultural producers in California were the largest recipients of PPP loans at $1.1 billion, followed by Washington at $285 million. California leads the nation in the value of agricultural production and has the highest hired labor expense among states. *********************************************************************************** Canada Announces Wildfire, Drought Support for Farmers As U.S. farmers faced drought conditions this year, so too did producers from Canada. Recently, Canada announced support for farmers and ranchers who are dealing with extraordinary costs due to drought conditions and wildfires. Canada announced C$219 million of support available through the AgriRecovery Framework. The funding will help them recover and ensure they have the tools they need to continue to be resilient in the face of natural disasters and extreme weather events. The announcement follows the August designation of specific regions for the Livestock Tax Deferral for 2023 due to extreme weather conditions. The Livestock Tax Deferral provision allows livestock producers who are forced to sell all or part of their breeding herd due to drought or excess moisture to defer a portion of their income from sales until the following tax year. This month, Farm Credit Canada also announced a new Replacement Heifer Program to help Canadian cattle producers in maintaining or expanding their herds. *********************************************************************************** Weaker Demand Driving Fuel Prices Lower Average gas prices declined again for the fifth straight week, with gasoline dropping 5.2 cents last week to $3.50 a gallon, according to GasBuddy. The national average is down 33.2 cents from a month ago and 26.8 cents per gallon lower than a year ago. However, the average diesel price increased 3.8 cents last week to $4.48 per gallon, yet 82 cents lower than one year ago. GasBuddy’s Patrick De Haan says, “The national average is on the cusp of falling to the lowest level since March, something that could happen this week.” Gasoline demand continues to weaken as the calendar marches towards winter, coupled with cheaper winter gasoline and refinery issues that have faded. For now, that trend will likely mean further declines in the weeks ahead, before prices bottom out between Thanksgiving and Christmas. The most common U.S. gas law week stood at $3.29 per gallon, while demand saw a 1.8 percent decrease.
| Rural Advocate News | Tuesday October 24, 2023 |
Tuesday Watch List Markets There are no official reports for Tuesday, but several earnings reports will get traders' attention, including reports from ADM, Alphabet (Google), GM, Microsoft and others. Traders are also interested in South American weather, rain in this week's U.S. forecast and news from the wars in Israel and Ukraine. Weather The setup for heavy precipitation continues in the middle of the country Tuesday with remnants of a tropical storm moving through Texas into Missouri throughout the day. A front from Nebraska to Wisconsin is also an area that could see precipitation but is the dividing line of colder air to the north and warm air to the south. Another, stronger cold front is moving through the Canadian Prairies, where snow is common today.
| Rural Advocate News | Monday October 23, 2023 |
Record-Low Mississippi River Level at Memphis The Mississippi River gauge hit a record-low water level on October 11 at Memphis, Tennessee. The all-time low hit -11.52 feet. It surpasses the previous low of -10.81 feet set in October 2022. The weekly USDA Grain Transportation Report says records were also broken on the Ohio River at Cairo, Illinois. That gauge read 4.5 feet, the lowest river level since 1901. Draft and tow-size restrictions are in place along the entire Mississippi River system. Despite some recent rains, more rain will be needed to raise water levels enough to improve the navigation conditions. Water levels are projected to rise by late October and early November, but navigation conditions aren’t expected to improve before late December or early January. Despite the navigation issues, the recent St. Louis spot freight rate fell for the third week in a row to $23.06 per ton, 68 percent below the same week last year. *********************************************************************************** Big Four Packers Hit with Another Suit The four largest meatpackers were hit by a new price-fixing lawsuit from a group of small food distributors. The suit was filed on October 9 in the U.S. District Court in Northern Illinois, accusing the Packers of fixing prices for years. The plaintiffs say the price-fixing dates back to at least January 1, 2015, and includes Cargill, JBS, Tyson Foods, and National Beef Packing Company. The distributors say the Big Four “exploited their market power in this highly concentrated market by conspiring to limit the supply of beef sold to purchasers in the U.S. wholesale market, which resulted in higher prices paid by the plaintiffs.” They also claim the alleged scheme caused financial harm at least through the end of 2021. “As a result, the plaintiffs paid higher prices for beef than they otherwise would have paid in a competitive market,” the lawsuit says while seeking relief under the Sherman Act. *********************************************************************************** Fourth Consider Corn Challenge Winners Announced The National Corn Growers Association announced the winners of the Consider Corn Challenge IV. Four winners were chosen for their unique ways to improve a product or process using feed corn to produce biobased materials. “Corn’s unique versatility can be witnessed in the showcase of their diverse approaches and applications,” says Sarah McKay, director of market development for NCGA. The winners include Penn State University, whose technology uses both corn starch and corn oil for applications in energy storage in lithium batteries. Nexceris has developed a new sugar-to-chemical process that uses renewable dextrose to make industrial chemicals instead of oil or gas. Maizly has developed the world’s first corn-based milk alternative called Maizly Original. Bluestem Biosciences developed a new yeast biology for the sustainable anaerobic production of 3-HP acids. “The Consider Corn Challenge fosters collaborations between corn farmers and industry, paving the way for innovative products and applications,” McKay adds. *********************************************************************************** Farm Bureau Women Sharpen Communication Skills Fifteen farm and ranch women leaders graduated from the fall session of the Women’s Communication Boot Camp hosted by the American Farm Bureau Federation. The agricultural leaders completed an intensive four-day course that featured sessions focused on public speaking, working with the media, and messaging. Program graduates will use this training to support Farm Bureau’s priority issues. This includes participating in local media opportunities, sharing information with elected officials, and joining social media campaigns spotlighting modern agriculture. “Agriculture needs strong advocates who are willing to step up and share their stories at the local, state, and national level,” says Isabella Chism (CHIZ-um), Chair of the Women’s Leadership Committee. “The Farm Bureau women leaders who completed this training are poised to creatively use their skills in a broad range of settings.” The program has a total of 284 graduates over 19 years and is open to all women involved in Farm Bureau. *********************************************************************************** Smaller Operating Loans Slow Ag Lending Activity Farm lending activity slowed further in the third quarter alongside a drop in operating loan volumes. The number of new non-real estate farm loans was flat compared to a year ago, while the average size shrank almost 20 percent. The amount of operating loans over $1 million dropped notably. The Kansas City Fed says lending has softened alongside significant increases in farm loan interest rates that have put considerable upward pressure on financing costs. The farm economy has moderated in recent months as profit margins thinned alongside lower commodity prices and elevated expenses. Credit needs have increased for many borrowers because of high input costs, but strong liquidity built up in recent years has also allowed many producers to supplement additional loan advances. Higher financing costs have prompted farmers with enough liquidity to limit debt usage, but any softening in farm finances could reduce reserves and increase loan demand. *********************************************************************************** September Milk Production Up Slightly Milk production in the 24 major dairy states during September totaled 17.5 billion pounds, up slightly from September 2022. August revised production, at 18.1 billion pounds, was 0.7 percent below August 2022. The August revision represented a decrease of 73 million pounds or 0.4 percent from last month’s preliminary production estimate. Production per cow in the 24 major states averaged 1,960 pounds for September, three pounds above September 2022. The number of milk cows on farms in the 24 major states was 8.91 million head, 16,000 head less than in September 2022 and 2,000 head less than August 2023. Milk production in the July through September quarter totaled 56.1 billion pounds, down 0.7 percent from the July through September quarter in 2022. The average number of milk cows in the United States during the quarter was 9.38 million head, 43,000 head less than April through June 2023 quarter, and 33,000 head less than 2022.
| Rural Advocate News | Monday October 23, 2023 |
Monday Watch List Markets Back from the weekend, traders will keep an eye on events in Israel and Ukraine and keep tabs on harvest progress with rain expected in the U.S. this week. USDA's weekly grain export inspections report is at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Cattle prices will respond to Friday's larger-than-expected placement and on-feed totals. Weather Portions of the Southern Plains, Northern Plains, and Upper Midwest will see scattered rain showers Monday. Areas in western Texas have a risk for flash flooding with areas of heavy rain developing. 1.00-2.00 inches of rain are possible in western Texas throughout Monday and into early Tuesday morning.
| Rural Advocate News | Friday October 20, 2023 |
Ag Groups Urge Caution About Fertilizer Duties The National Corn Growers Association and 62 other ag groups say fertilizer shortages are creating a hardship for U.S. farmers. The groups sent a letter to Commerce Secretary Gina Raimondo asking her to consider the current difficulties faced by farmers as she recalculates duties on phosphate fertilizer imported from Morocco. “High costs and limited availability of fertilizer continue to strain family farms across the U.S.,” the groups said. The duties levied on fertilizers have caused some of the top phosphate fertilizer importers to drastically reduce the amount brought in. The letter comes after the U.S. Court of International Trade ordered the agency to reconsider its previous decision on recalculating the duties. The letter says duties levied on phosphate imports combined with other factors have led to substantial price volatility over the past three years as prices increased 230 percent from 2020 to 2022. A determination will be announced on December 13. *********************************************************************************** World Dairy Summit Celebrates the Future The first International Dairy Federation World Dairy Summit held in the U.S. in over 30 years recently concluded in Chicago. Over 1,240 dairy leaders from 55 countries celebrated the IDF’s 120th anniversary and highlighted dairy innovations, market opportunities, and contributions to global sustainability and food security. “U. S. Dairy is honored to have hosted this momentous IDF WDS 2023, bringing dairy’s premier annual gathering to the U.S. for the first time in over three decades,” says U.S. IDF Co-Chair Nick Gardner. Summit leadership emphasized bringing the global dairy sector together, releasing a declaration statement calling on governments, global organizations, and the world’s food and beverage sector to support “Being Dairy.” The summit delivered dynamic programming, including eight main sessions and 21 break-out sessions focused on dairy policy, scientific, and technical issues and insights. “The hard work of the dairy sector produces nutritious food for over six billion consumers,” Gardner says. *********************************************************************************** Early 2023 Hog and Cattle Weights Lagged Behind 2022 Live weights of both hogs and cattle ran below year-earlier weights for the early part of 2023. Hog live weights averaged 284.9 pounds through the week ending on July 8, 2023, compared to 287.3 pounds during the same time in 2022. That’s an average difference of over 2.4 pounds. Lower weights this year are likely because of producer losses caused by high feed costs and low hog prices due to weaker pork demand. Live cattle weights averaged 1,370 pounds through May 20, 2023, 16.25 pounds less than weights over the same period last year. Lower weights are likely caused by numerous factors, including more heifers with lower weights in the slaughter mix due to ongoing drought conditions that discouraged the retention of heifers for breeding. Additionally, feedlot performance was likely affected by adverse weather conditions early in 2023, resulting in lower rates of gain. Hog weights hit year-earlier levels in mid-July. *********************************************************************************** Research Investments Spur New Agricultural Markets The USDA’s National Institute of Food and Agriculture announced an investment of almost $22 million in agricultural economics research. That research will include agricultural markets, international trade, farm labor, consumer behavior and nutrition, food retail, agricultural production, processing, and agricultural policy. NIFA Director Manjit (Man-JEET) Misra says, “The challenges facing the agricultural sector, the production and consumption of food, and management of natural resources and the environment continue to evolve.” The agency chief also says NIFA supports research that investigates the increasing global demands for food production in the face of limited resources and changing climate. “These will have major implications for how we use natural resources, promote healthy diets, invest in science, and foster economic opportunities and quality of life for all Americans,” Misra says in a release. He made the announcement in Colorado during a keynote address at the Global Forum for Rural Advisory Service Annual Meeting in Denver. *********************************************************************************** New Eggnog in Time for the Holidays Organic Valley Cooperative released its limited-time eggnog with a new recipe. It’s made from scratch and coming just in time for the holiday season. The farmer-owned organic co-op calls the new recipe its Organic Reduced Fat Eggnog, which is already available for purchase throughout the country. Milk is sourced from small family farms, as well as the eggs, sugar, nutmeg, and natural flavor. Dairy Processing reports that like all Organic Valley products, the eggnog’s milk comes from dairy farms where the cows are raised without the use of antibiotics, synthetic hormones, toxic pesticides, or GMOs. The company says it heard loud and clear from consumers that eggnog is an important part of their winter traditions, so the co-op came together to work hand-in-hand with their smaller family farmers to make the new eggnog a reality. “We’re excited to introduce this made-from-scratch recipe,” says Jaclyn Cardin, chief brand officer at Organic Valley. *********************************************************************************** Butter Prices Hit Record Highs Butter prices have hit a record high this month as lower production levels create supply constraints heading into the holiday season when demand normally peaks. The USDA says spot butter prices on the Chicago Mercantile Exchange hit a record high at $3.44 a pound last week. August butter production was at the lowest level in almost five years because of tighter milk supplies, fewer imports, and the increased use of cream in making other products. Agriculture Dive says the summer’s heat impacted milk supplies in two ways: the heat caused cows to produce less milk, and consumers demanded more ice cream and other dairy-based products. U.S. butter use has trended higher year-over-year since February, but production hasn’t kept up. Year-to-date domestic use was 8.2 percent higher than last year, while production and imports rose only four percent. USDA says the surge in demand is much higher than is typical.
| Rural Advocate News | Friday October 20, 2023 |
Friday Watch List Markets USDA's cattle on-feed report for October 1 will be out at 2 p.m. Traders will be focused on any new export sales, along with weather in South America, and geopolitical developments from Ukraine or the Middle East. Weather Mostly dry conditions are expected across the Plains and Mississippi Valley Friday with high pressure in control. However, a quick system will move through northern and eastern areas of the Upper Midwest this afternoon and tonight.
| Rural Advocate News | Thursday October 19, 2023 |
Arkansas Orders Syngenta to Sell Farmland Arkansas Attorney General Tim Griffin this week ordered Syngenta to divest its ownership of approximately 160 acres in the state. Griffin also imposed a civil penalty of $280,000 for failure to timely report foreign ownership by the Chinese state-owned company. The land in question is owned by Northrup King Seed Co., a subsidiary of Syngenta Seeds, LLC, which is ultimately owned by China National Chemical Company, known as ChemChina. Griffin says, "I am ordering ChemChina, as a 'prohibited foreign-party-controlled business' to divest this land within two years, or I will commence an enforcement action in Craighead County circuit court." Under Arkansas Act 636, state law bars a "prohibited foreign-party-controlled business" from acquiring or holding public or private land in Arkansas either directly or through affiliated parties. In March 2022, Syngenta Seeds, LLC submitted paperwork to USDA regarding the property under the federal Agricultural Foreign Investment Disclosure Act, stating that "ultimately, the foreign person that holds indirectly a significant interest in the person owning the land is from China." *********************************************************************************** APHIS Partnership to Improve Early Detection of Emerging Animal Diseases The Department of Agriculture Wednesday announced a new partnership between the National Bio and Agro-Defense Facility and the National Animal Health Laboratory Network. USDA's Animal and Plant Health Inspection Service will place five scientists in labs in each of the five National Animal Health Laboratory Network regions to enhance the capabilities and capacities of the network. USDA Chief Veterinarian Dr. Rosemary Sifford says, "Our goal is to ensure all network laboratories are poised to combat the threat of transboundary and emerging diseases to protect our nation's agricultural and food supply systems." USDA selected the following laboratories to participate: Cornell University Animal Health Diagnostic Center, Virginia Tech Animal Laboratory Services, Michigan State University Veterinary Diagnostic Laboratory, Arizona Veterinary Diagnostic Laboratory, and Washington Animal Disease Diagnostic Laboratory. The scientists will evaluate and develop diagnostics for animal and zoonotic diseases. They will collaborate across the organizations and will be responsible for evaluating local, regional, national, and international threats and ensuring the laboratories have the tools necessary to diagnose emerging threats. *********************************************************************************** Lawmakers Reintroduce the Adopt GREET Act Lawmakers Wednesday announce the reintroduction of the Adopt GREET Act. The legislation is a bipartisan bill directing the Environmental Protection Agency to update its greenhouse gas modeling for ethanol and biodiesel. Republican Senators Chuck Grassley of Iowa, John Thune of South Dakota, and Minnesota Democrat Amy Klobuchar introduced the legislation. Grassley says, "My colleagues and I are working to empower the innovation stemming from our energy and agricultural communities, and get federal emissions testing up to speed with private sector producers." The Adopt GREET Act would require the EPA to apply the Argonne National Lab's "Greenhouse Gases, Regulated Emissions and Energy Use in Transportation" or GREET Model to energy commodities under the Renewable Fuel Standard. It would hold EPA accountable by ensuring the agency updates its modeling every five years. The EPA would need to report to Congress either affirming its modeling is current or explaining why no updates were made. *********************************************************************************** OTA Welcomes Organic Standards Act The Organic Trade Association applauds the introduction of the Continuous Improvement and Accountability in Organic Standards Act. The legislation ensures organic standards continuously evolve and improve and to hold the federal government accountable for keeping up with the needs and expectations of the dynamic organic marketplace. The legislation would amend the Organic Foods Production Act of 1990 to provide a streamlined and predictable process to review and revise organic standards implemented by USDA. It would enable the improvement and advancement of organic to forge ahead into the future. OTA CEO and Executive Director Tom Chapman says, "Ensuring continuous improvement for organic is our highest priority in the 2023 Farm Bill, and this legislation goes far to address that objective." The bill requires the USDA to review and revise national organic standards "not less frequently than once every five years." The legislation also highlights the continuation of the established consultation process with the National Organic Standards Board and input from the public. *********************************************************************************** USDA Announces Nearly $50 Million to Strengthen Forest Products USDA’s Forest Service Wednesday announced nearly $50 million in grant funding. The funding is for proposals that support crucial links between resilient, healthy forests, strong rural economies and jobs in the forestry sector. USDA says the funding will spark innovation, create new markets for wood products, expand processing capacity, and help tackle the climate crisis. Agriculture Secretary Tom Vilsack says, "We are investing in rural economies by growing markets for forest products through sustainable forest management while reducing wildfire risk, fighting climate change, and accelerating economic development." The Forest Service is requesting proposals from eligible entities in the private, non-profit, and government sectors, including Tribes, local and state governments, businesses and for-profit entities, institutions of higher education, as well as public utility, fire, conservation, and school districts, among others. These investments will support forest management projects to improve forest health and reduce wildfire risk across all land ownerships. Visit the Forest Service webpage for more information. *********************************************************************************** New Call for Applications in Aflatoxin Research Grants The National Corn Growers Association Wednesday announced a new round of research grants to help farmers manage aflatoxin issues. Proposals not exceeding the $100,000 per year limit—will be accepted by the Aflatoxin Mitigation Center of Excellence no later than Wednesday, November 15, 2023. The competitive grants program offers research grants for projects focused on solving profit-robbing aflatoxin issues for farmers. The program was developed by a consortium of southern state corn checkoff boards to provide a unified approach to funding projects affecting growers across the region. NCGA serves as the management structure to leverage more dollars for solving aflatoxin issues and to build strong regional teams, which would be highly competitive for federal, public, and private funding. Projects funded through the grant program for 2024 should focus on one of these three priority research areas: ideas that prevent or defend against aflatoxin, In-field mitigation measures, and post-harvest strategies. For more information, visit NCGA.com.
| Rural Advocate News | Thursday October 19, 2023 |
Thursday Market Watch Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Weather Isolated to scattered rain showers are likely across the Great Lakes, Ohio Valley, and Tennessee Valley today as a cold front works from west to east across these regions. Dry and relatively warm conditions return across the Plains.
| Rural Advocate News | Wednesday October 18, 2023 |
CRP Pays Over $1.77 Billion The USDA has issued over $1.77 billion this year to agricultural producers and landowners through its Conservation Reserve Program. The agency says the program is a critical piece of the Department’s efforts to support climate-smart agriculture and forestry on working lands. More than 667,000 participants received payments from the Farm Service Agency for their voluntary conservation efforts on more than 23 million acres of private land. “Through the addition of tools to sequester carbon, reduce greenhouse gas emissions, and better quantify these efforts, we’ve made the Conservation Reserve Program better for the nation’s ag producers and landowners and our natural resources,” says Ag Secretary Tom Vilsack. The USDA also listed the top five states for CRP participation payments, including Iowa at number one, followed by Illinois, Minnesota, South Dakota, and Missouri. “We are grateful to all CRP participants who are making a tremendous difference now and for future generations,” Vilsack adds. *********************************************************************************** Global Crop Protection Market to Jump by 2032 The global agricultural landscape is on the brink of a large shift, with the crop protection chemicals market points to witness extraordinary growth. The market will exceed $132.4 billion by the year 2032. Global Market Insights, Inc., says the unprecedented surge can be attributed to a confluence of factors ranging from technological advancements to swelling population numbers to the pressing need for more sustainable agricultural practices. The world population expected to reach almost 9l7 billion people by 2050 necessitates a dramatic surge in food production. This will put immense pressure on the ag sector, and crop protection chemicals play an instrumental role in ensuring optimal yields. While the use of crop protection tools is essential to modern agriculture, sustainable practices like biopesticides and the exploration of natural enemies are examples of a shift towards more ecologically stable approaches. As world population surges, crop protection chemicals will help ensure food security. *********************************************************************************** Senators Challenge EPA Rodenticide Restrictions Senators Chuck Grassley (R-IA) and Cindy Hyde-Smith (R-MI), along with 15 Senate colleagues, are challenging the EPA to abandon its proposed mitigation measures targeting 11 rodenticides. In a letter to Environmental Protection Agency Administrator Michael Regan, the senators urged Regan to consult the businesses and individuals who rely on rodent control products when developing rules that affect their operations. “As written, the proposed mitigation measures will place severe restrictions on product users and result in crop damage and livestock loss, jeopardize the safety of the food supply, weaken public health protections, and make it more difficult for people to protect their homes and properties from rodents,” the letter says. The EPA’s proposed mitigation measures would classify most rodent control products as restricted-use pesticides and require users to become licensed, state-certified applicators. It would prohibit surface application methods for protecting crops and require growers to conduct carcass searches for two weeks after application. *********************************************************************************** USDA Trims America’s Feed Grain Supplies October U.S. feed grain production is forecast at 396.6 million tons for the 2023-2024 marketing year, down 1.8 million tons on reduced corn and sorghum output. With lower beginning stocks partly offset by a slight bump in imports, the total feed grain supply is projected 4.1 million tons lower this month at 436 million. Reflecting a slight yield decrease to 173 bushels per acre on unchanged harvested acreage, U.S. corn production is 69.5 million bushels lower this month at 15.06 billion. The September 30 Grain Stocks Report estimated American corn stocks on September 1 at 1.36 billion bushels, down 90 million from the September WASDE report. With reductions in food, seed, and industrial use and exports based on observed data, 2022-2023 feed and residual disappearance is higher than previously forecast. These factors contribute to smaller carry-in for the 2023-2024 marketing year and, ultimately, a lower corn supply, projected at 16.45 billion bushels. *********************************************************************************** NHSTA CAFE Standards Will Weaken Energy Security The National Highway Traffic Safety Standards proposed new fuel economy standards that greatly missed the intent of the Corporate Average Fuel Economy Program to enhance energy security. That’s according to comments filed by the National Corn Growers Association, the Renewable Fuel Association, and the National Farmers Union. They assert the proposal will lead to an overreliance on critical foreign minerals due to its singular dependence on electric vehicles. “As NHTSA determines the appropriate CAFE and fuel efficiency standards, it should avoid putting all our eggs into the electrification basket,” the groups say in their comments. “The proposal missed the intent of the CAFÉ program. As Congress acknowledged, solving energy security and air pollution issues related to the transportation sector require a diversified portfolio of approaches.” The associations note problems with overreliance on electric vehicles because of the increased security vulnerabilities of getting critical minerals from overseas that are needed for the batteries. *********************************************************************************** Weekly Corn Export Inspections Drop Inspections of corn for overseas delivery dropped week-to-week while bean assessments improved. USDA data says corn inspections totaled 434,471 metric tons in the seven days ending on October 12. That’s a significant drop from over 800,400 tons the week prior and just below the 460,000 tons assessed during the same week in 2022. Examinations of soybeans for export surged to just over two million metric tons last week, up from 1.4 million the previous week and higher than the 1.93 million tons assessed during the same week last year. Wheat inspections also rose, increasing to 354,771 metric tons from just over 306,600 tons during the previous week. That’s also up from the 244,500 tons assessed during the same week in 2022. Since the new marketing year began on September 1, USDA has assessed 3.93 million metric tons of corn for offshore delivery, and soybean inspections are at 5.4 million tons.
| Rural Advocate News | Wednesday October 18, 2023 |
Wednesday Market Watch Markets Wednesday morning, the government will report housing starts and building permits. We will be watching for any new sales announcements and for weather changes in South America. Weather A low pressure system will bring areas of scattered, light rain showers to the Northern Plains and Upper Midwest Wednesday. By Wednesday night, this system will continue shifting east, providing light rain showers to the northern Mississippi River Valley.
| Rural Advocate News | Tuesday October 17, 2023 |
U.S. Grains Council Hosting Global Ethanol Summit The U.S. Grains Council kicked off the week by hosting the Global Ethanol Summit in Washington, D.C., held for the first time since 2019. The Global Ethanol Summit is an education and trade forum that seeks to elevate bioethanol's international visibility. U.S. Grains Council President and CEO Ryan LeGrand says, “I’m thrilled to see so many industry leaders and policymakers gathering here in the Washington area with the common goal of implementing environmental and human-health friendly bioethanol in regions around the world.” Monday programming offered keynote addresses from POET Founder and CEO Jeff Broin, Summit Agricultural Group Executive Chairman Bruce Rastetter and U.S. Department of Agriculture Acting Deputy Undersecretary Jason Hafemeister. Memorandums of understanding will be signed between domestic producers and overseas importers Tuesday (today). At the end of the event, 11 groups of participants will travel around the country to view the biofuel value chain firsthand before returning to their home countries. The event concludes Wednesday. *********************************************************************************** USDA Extends Milk Loss Program Assistance The Department of Agriculture last week extended the application deadline for the Milk Loss Program to Monday, October 30, 2023. The extension allows more time for eligible dairy farmers to apply for much-needed, weather-related disaster recovery assistance. Administered by USDA’s Farm Service Agency, MLP compensates dairy producers who, because of qualifying weather events, dumped or removed milk without compensation from the commercial milk market in calendar years 2020, 2021 and 2022. Eligible causes of loss also include consequences of these weather events, such as power outages, impassable roads and infrastructure losses. FSA opened MLP enrollment on September 11, 2023; the original MLP deadline was October 16, 2023. Most producers, especially those who have previously participated in FSA programs, will likely have the required forms already on file. But those who are uncertain or want to confirm the status of their forms can contact FSA at their local USDA Service Center. *********************************************************************************** USDA Releases Monthly Cotton and Wool Outlook The latest Department of Agriculture cotton projections for 2023/24 indicate global cotton beginning and ending stocks decreased by approximately ten million bales, 11 percent, from the previous month. The decrease, however, was largely attributable to a permanent accounting change for Brazil’s production data back to 2000/01. For 2023/24, global cotton ending stocks, at 79.9 million bales, are 2.9 million bales, or 3.5 percent lower than the previous year, as mill use is estimated to exceed production. China accounts for nearly half of global cotton stocks once again in 2023/24, with India, Brazil, and the United States combining for an additional 25 percent. World cotton production is forecast at 112.6 million bales in 2023/24, 3.2 percent below the previous year, as the global yield is projected to decline. World cotton trade is projected to rise 17 percent in 2023/24, supporting the expected 4.4 percent increase in global cotton mill use to 115.8 million bales. *********************************************************************************** Grants to Establish Children’s Health Research Centers in Rural Communities The Environmental Protection Agency Monday announced $3.7 million in grant funding to two institutions to establish research centers. The facilities will address children’s cumulative health impacts from agricultural and non-chemical exposures. Children in underserved, rural agricultural communities face increased health risks due to the combination of agricultural, according to the EPA. The agency says there is an urgent need to investigate the cumulative health impacts of chemical and non-chemical exposures for children in these communities. EPA spokesperson Chris Frey says, “EPA is funding these research centers to identify effective, science-based options aimed at reducing early childhood health disparities in agricultural communities.” Florida State University will use the funding to evaluate chemical and psychosocial stressors and promote children’s cumulative health in rural and agricultural communities. The University of Oklahoma Health Sciences Center will use the grants to mitigate the chemical and non-chemical stressors that affect school absenteeism caused by gastrointestinal and respiratory diseases in Texas and Oklahoma. *********************************************************************************** Tulare County, California Top Ag Producer in 2022 Tulare (too-larry) County, California, is the number one ag-producing county in the United States for 2022. While Fresno County, California, reported a record $8 billion haul for 2022, it didn't beat Tulare County's $8.6 billion report. Both counties benefited from improved market prices and continue to corner the market in the top spots in the nation for ag production. Add in Kern County, California, at number three, and the Central Valley counties are a combined agriculture and economic powerhouse valued at $24.4 billion. Putting this in perspective, three California counties account for 44 percent of California's total ag production value of $55.8 billion. Tulare County has a growing population of 479,112 and includes an area of 4,863 square miles. The fertile valley floor in the Western half of the county has allowed Tulare County to become the top producer of agricultural commodities in the United States, while the Eastern half is comprised of mostly public lands. *********************************************************************************** Fuel Prices Decline After Volatile Week For the fourth consecutive week, the nation's average price of gasoline dropped, falling 11.3 cents from a week ago to $3.55 per. The national average is down 29.9 cents from a month ago and 30.9 cents per gallon lower than a year ago. The national average diesel price fell 5.8 cents last week and stands at $4.48 per gallon, 55.2 cents lower than one year ago. GasBuddy's Patrick De Haan says, "For now, the national average is likely to soon fall to its lowest level in six months." However, De Haan cautions, "this depends on actions that are not foreseeable, mainly the conflict in the Middle East." As the situation continues to unfold, markets will be watching interactions between Iran as well as responses from Israel, and while all eyes have been on those escalations, Saudi Arabia has put an end for now to a possible weapons and security pact between the U.S. and Israel.
| Rural Advocate News | Tuesday October 17, 2023 |
Tuesday Watch List Markets Tuesday morning, the U.S. government will be out with retail sales and industrial production reports. We will also be watching for developments in the Israel versus Hamas conflict, with President Joe Biden arriving Wednesday for a meeting with Israel representatives. We will also be watching for any new export sales, and weather in South America. Weather A storm system will be moving through the Canadian Prairies and Northern Plains on Tuesday, producing some areas of isolated showers throughout the day with increasing winds. The rest of the country is rather quiet.
| Rural Advocate News | Monday October 16, 2023 |
Top 5 Things to Watch - Global Events, Reports Drive Markets 1. Post-WASDE worries: Lowered corn expectations in the United States (see our latest USDA World Agricultural Supply and Demand Estimates (WASDE) report coverage) will continue to run into the market volatility driven by global conflicts and the ongoing Congressional leadership drama. DTN analysts will continue to factor all this windage and elevation into where the commodity market targets hit. 2. Soil moisture watch: We'll watch drought monitors in the U.S. and in Canada to see how recent rains have changed soil moisture as we go into late fall and winter. Conditions continue to cause low water levels in the Mississippi River Valley, causing barge issues up and down those critical waterways. 3. Crop insurance comes into focus: With more than a third of the U.S. corn crop harvested, farmers have concrete ideas about their yields. Those real-world results are also reflected in this month's WASDE report, which lowered corn yields to 173 bushels per acre for expected average. Lower corn yields are coinciding with lower prices, which means crop insurance payments are becoming more likely for farmers who chose revenue-guarantee products. 4. Cattle numbers coming: This week sees the latest USDA Cattle on Feed report coming out Friday. We'll have our analyst's preview of the report mid-week, then actual numbers hit at 2 p.m. CDT Friday, with analysis of those numbers shortly after. 5. Economic reports calendar: Monday will see USDA's weekly grain export inspections at 10 a.m. CDT, followed by Crop Progress at 3 p.m. We'll have our commentary on Crop Progress soon after. Tuesday is a broad economy two-fer with U.S. retail sales for September due out at 7:30 a.m., followed by the Fed's report on U.S. industrial production at 8:15 a.m. Wednesday features the U.S. housing starts for September, out at 7:30 a.m., followed by the U.S. Energy Department's weekly energy inventories at 10 a.m. At 1 p.m., the Fed releases its description of economic activity in the Beige Book. Thursday is a busy morning, with USDA's weekly export sales report, U.S. weekly jobless claims and the updated U.S. Drought Monitor all due at 7:30 a.m. CDT. U.S. existing home sales in September and U.S. leading indicators are both due out at 9 a.m., followed by the U.S. Energy Department's weekly report of natural gas storage at 9:30 a.m. As noted earlier, Friday is USDA's monthly cattle on feed report for Oct. 1.
| Rural Advocate News | Monday October 16, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest news from Israel and Ukraine, as well as the latest weather forecasts with seasonal attention on South America. USDA's weekly grain export inspections are due out at 10 a.m. CDT Monday, followed by the Crop Progress at 3 p.m. Weather A lull between systems has set itself into the middle of the country for Monday, keeping most areas dry. Isolated showers may form south of the Great Lakes, however. Some cold morning temperatures will produce frosts in the Plains Monday morning and Tuesday morning as well.
| Rural Advocate News | Friday October 13, 2023 |
Higher Interest Rates, Strong Dollar Affecting Rural Economies CoBank says the combination of high interest rates and a strong U.S. dollar is beginning to take a disproportionate toll on rural industries like agriculture, forestry, and manufacturing. Most international transactions are still conducted in dollars, and a strong dollar makes U.S. exports more expensive and imports cheaper. CoBank’s Knowledge Exchange says that disproportionately hurts the backbone of the rural economy. “The challenge for agriculture and other rural industries that rely heavily on global markets is their export partners simply can’t afford to buy U.S. products,” says Rob Fox, Knowledge Exchange Director. America’s economic position relative to other countries has gotten much stronger than anticipated. The expectation that interest rates will remain high for the foreseeable future has also contributed to the stronger dollar. “When you combine the export loss with a general slowdown in the U.S. economy, it’s a double whammy for many businesses in rural America,” says Fox. *********************************************************************************** Brazil Produces Less Corn, More Soybeans Brazil’s corn production will drop significantly while the soybean output will surge in the 2023-2024 marketing year. Those numbers come from CONAB (KOH-nab), Brazil’s food agency. South American corn output is projected at 119.4 million metric tons. If it’s reached, that would be down from the 131.9 million metric tons produced in the 2022-2023 marketing year. Also, soybean output is now forecast by CONAB at 162 million metric tons. The rise is tied to strong overseas demand, especially from China. Production during the previous marketing year totaled 154.6 million metric tons. CONAB says total grain and soybean production is predicted to reach 317.5 million metric tons, a number the agency says is down 1.5 percent year over year. Wheat production was predicted to reach 10.5 million metric tons, down modestly year over year because of weather issues. Brazil’s rice output is expected to rise 7.7 percent to 10.8 million tons. *********************************************************************************** October WASDE Shows Lower U.S. Corn and Soybean Production The latest World Ag Supply and Demand Estimates Report says U.S. corn production is forecast at 15.1 billion bushels, down 70 million on a cut in yield to 173 bushels per acre. The corn outlook predicts reduced supplies, down less than one percent, but ten percent above 2022. The season-average corn price received by producers was raised a nickel to $4.95 a bushel. Soybean production is forecast at 4.1 billion bushels, down 42 million on lower yields. The yield is predicted at 49.6 bushels per acre, down 0.5 bushels from last month. With lower production partly offset by higher beginning stocks, supplies are reduced by 24 million bushels. The season-average soybean price is unchanged at $12.90 per bushel. Wheat supplies were raised by 85 million bushels this month, primarily on higher production as reported in the NASS Small Grains Summary. The season-average farm price dropped 20 cents per bushel to $7.30. *********************************************************************************** September Food Price Index Unchanged The U.N.’s Food and Agricultural Organization’s Food Price Index averaged 121.5 points in September, basically unchanged from the value in August. Declines in the price index for vegetable oils, dairy, and meat offset increases in the sugar and cereal price indices. That 121.5 reading was ten percent below its corresponding level from a year ago and 24 percent from the all-time high in March 2022. The Sugar Price Index took the biggest jump in September, rising 14.5 points from August to an average of 162.7 points. It’s the highest level since November 2010. The Cereal Price Index rose one percent to 126.3 points in September. The Vegetable Oil Price Index dropped five points in September to average 120.9 points. The Dairy Price Index averaged 108.6 points during the month, down 2.6 points and 34 points under the same time last year. The Meat Price Index dropped one percent to 114.2 points. *********************************************************************************** Fund Awards Over $1 Million to U.S. Farmers and Ranchers American Farmland Trust recently awarded more than $1 million to 110 farmers around the country through the Brighter Future Fund. The grant announcement came out on National Farmer’s Day that recognizes the importance of American farmers. This year, AFT received more than 1,500 applications from 48 states, an all-time high and almost double the number of applications last year. Priority was given to applicants who were starting their agricultural pursuits, veterans, women, or those with limited resources. Funds were allocated for both professional services and equipment or infrastructure costs, with focus areas including improving farm viability, accessing farmland, and adopting regenerative agricultural practices. AFT awards grants to farmers and ranchers to advance its mission to protect farmland, promote sound farming practices, and keep farmers on the land. The Brighter Future Fund was launched in 2020 to help farmers around the U.S. start, grow, and sustain farms despite a number of challenges. *********************************************************************************** Ag Groups Want Congress to Pass AM Radio Legislation Nine organizations representing rural and agricultural interests wrote a letter to Congress in support of passing the AM Radio for Every Vehicle Act. “AM radio is an essential communications medium in rural America,” the letter says. “Local news, weather, and sports reporters are recognized as respected sources for information that affects the lives of millions of rural residents.” The letter was sent to lawmakers by multiple groups like the Independent Cattlemen’s Association of Texas, the Latino Farmers & Ranchers International, the Livestock Marketing Association, the National Farmers Union, the National Grange, and others. The letter touts the reach of traditional AM radio broadcasts that carry a strong signal over significant distances, even during catastrophic weather events. FEMA also relies on AM radio to deliver critical public safety information. “When power goes out in rural America and cell networks drop, households can still get emergency information through their radios,” the letter adds.
| Rural Advocate News | Friday October 13, 2023 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. Friday, one day after USDA reduced export estimates for corn and soybeans. The University of Michigan's consumer sentiment index follows at 9 a.m. Traders remain interested in the latest weather forecasts and news from Ukraine, Israel and Washington D.C. Weather A storm system is moving eastward into the Midwest Friday, bringing areas of heavy rain with it. Strong winds in the Plains may reach up to 60 mph through the daylight hours before winding down Friday night. Cold air filtering in behind the system will bring the first frosts and freezes to the southwestern Plains Friday night.
| Rural Advocate News | Thursday October 12, 2023 |
Survey Reveals Consumer Purchasing Behaviors A new survey from the United Soybean Board reveals valuable insights into consumer preferences and purchasing attitudes for animal protein, particularly pork products. According to the survey, 70 percent of respondents say that animal diet is extremely or very important to them when purchasing meat, up from 51 percent in 2019. Meat consumers who prefer soy-fed meat say it offers better health, higher quality, greater nutrition and better taste. This research confirms that consumers desire to know more about their meat choices, such as what poultry and livestock consume. The study found three out of four consumers are more likely to purchase meat if it’s raised and fed by U.S. farmers. Even higher than that, the majority of consumers, at 88 percent, are more likely to purchase meat from animals born, bred and raised in the United States. USB commissioned global market research firm Reputation Leaders to survey more than 2,000 U.S. adults online for the study. *********************************************************************************** USDA Announces New School Lunch Grants Agriculture Secretary Tom Vilsack Wednesday announced two new grant opportunities plus a training and technical assistance partnership to help schools continue to invest in nutritious school meals. The announcement comes as USDA recognizes National School Lunch Week, as proclaimed by President Biden, and National Farm to School Month. Vilsack says, "USDA is committed to giving students the nutrition they need to reach their full potential by empowering schools to continue serving delicious, healthy meals." USDA is partnering with the Urban School Food Alliance to provide training and tools to school districts to help them purchase high-quality foods while keeping costs low. In addition, two new grant opportunities are opening to support school meals, including USDA's Farm to School Grants, and the School Food Systems Transformation Challenge Sub-Grants. In addition, this month, the Farm to School Program also launched the 2023 Farm to School Census, a periodic survey of school districts’ participation in local procurement and agricultural education activities. *********************************************************************************** Strong Finish for Q3 Tractor Sales Unit sales of four-wheel-drive ag tractors experienced a notable upswing in both the U.S. and Canada in September, closing the third quarter of 2023 in a strong position. The latest monthly data from the Association of Equipment Manufacturers shows 100-plus two-wheel-drive tractors, and four-wheel-drive tractors grew year-over-year in the United States. Both segments, along with combines, remain positive for the year. Overall unit sales of U.S. tractors are down 4.3 percent compared to sales in September 2022, with 100-plus horsepower two-wheel-drive units being the only other growth segment, while combine sales finished nearly flat, only selling eight fewer units than the previous year. Canadian tractor sales fell nearly 14 percent, with combines declining more than 37 percent. Year to date, at the end of the third quarter of 2023, combine sales overall are positive, up more than 25 percent, while tractors altogether are down just over eight percent in the United States. *********************************************************************************** Growing Share of Egg-Laying Hens Are Cage-free Cage-free hens comprise a growing percentage of the U.S. egg-laying flock, according to USDA’s Economic Research Service. The cage-free flock has grown as states have passed and enacted legislation banning confinement of hens, and as multiple retailers and food service providers have pledged to only source eggs from cage-free operations. Additional State bans are planned to take effect between 2023 and 2026. The cage-free egg-laying flock increased by more than 10.5 million hens in the first six months of 2023, according to USDA’s Monthly Cage-Free Shell Egg report. Cage-free hens increased as a proportion of the total U.S. laying flock, expanding from 36 percent in January to 38 percent in June. The non-organic cage-free flock accounted for most of the increase. Meanwhile, in late 2021, cage-free lay rates have been moving mostly above or at similar levels to the lay rates in the overall table egg-laying flock, a departure from the previous trend. *********************************************************************************** NIFA Invests $1.8 Million in Pest Management Alternatives USDA's National Institute of Food and Agriculture has invested $1.8 million in four projects as part of the Methyl Bromide Transition Program. Methyl bromide is an odorless, colorless gas previously used in many agricultural and related systems as a soil and structural fumigant to control various pests. However, Methyl bromide depletes the stratospheric ozone layer. As part of the Clean Air Act, the U.S. Government agreed to reduce methyl bromide incrementally from 1991 until the complete phase-out in 2005. The Methyl Bromide Transition Program supports the discovery and implementation of practical pest management alternatives for commodities and uses affected by the methyl bromide phase-out. Funded projects include integrated and Extension-only projects seeking to solve pest problems in key agricultural production and post-harvest management systems, processing facilities, and transport systems for which methyl bromide has been withdrawn or withdrawal is imminent. The 2023 Awardees include Arkansas State University, University of Delaware, Kansas State University and North Carolina State University. *********************************************************************************** Students Encouraged to Apply for Beef Industry Scholarship The National Cattlemen’s Foundation is accepting applications for the 2024 CME Group Beef Industry Scholarship. Ten scholarships of $1,500 each will be awarded to outstanding students pursuing careers in the beef industry. Introduced in 1989 and sponsored by CME Group, the scholarship identifies and encourages students who play a vital role in the future of food production. Students studying education, communication, production, research or other areas related to the beef industry are eligible to apply for the annual scholarship program. Eligible applicants must be a graduating high school senior or full-time undergraduate student enrolled at a two- or four-year institution. The application process includes submitting a one-page letter expressing career goals related to the beef industry, a 750-word essay describing an issue in the beef industry and offering solutions to this problem and two letters of recommendation. The applicant or a family member must be a National Cattlemen's Beef Association member. The application deadline is November 10, 2023. For more information and to apply, visit nationalcattlemensfoundation.org.
| Rural Advocate News | Thursday October 12, 2023 |
Thursday Watch List Markets Thursday is a busy day with U.S. weekly jobless claims due out at 7:30 a.m. CDT, the same time as the consumer price index for September and update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is at 9:30 a.m., followed by the weekly report of energy inventories at 10:00 a.m. At 11 a.m., USDA releases its Crop Production and WASDE Reports for October, followed by DTN's WASDE webinar at 12:30 p.m. Weather A strong storm system continues to build in the Central Plains Thursday morning. Heavy rain and thunderstorms have formed in a band from Wyoming to Chicago, which will continue to build in this general area and farther north throughout the day. Winds continue to increase in the Plains around the developing low-pressure center, which will be much more significant tonight into Friday as the system tracks eastward. Snow is also likely to mix in over parts of Wyoming and western Nebraska, though accumulation will be difficult. Heavy rain continues to track through the Southeast this morning as well.
| Rural Advocate News | Wednesday October 11, 2023 |
Smithfield Foods to Close North Carolina Pork Plant Smithfield Foods will close its Charlotte, North Carolina, pork-processing plant and transfer production to its Tar Heel, North Carolina, facility. The company says the move is to increase efficiency and better utilize existing capacity, and comes as the company faces “abundant supplies and soft demand” weighing on pork prices. The company will provide financial and other transition assistance to the 107 employees affected by this closure and will meet with employees to discuss options, including transfer to other Smithfield locations. Smithfield will also provide a financial incentive package for hourly employees to remain at Charlotte until the final day of production in December. Smithfield employs nearly 40,000 people in the U.S. and more than 10,000 in North Carolina. The company is not alone, as Tyson Foods announced the shutdown of six chicken processing facilities this year and cut jobs at others in North Carolina. *********************************************************************************** NARA Launches Organics Recycling Information Campaign NARA, the North American Renderers Association, just released an infographic on Organics Recycling and How Recycling Food Waste with Rendering Creates Value and Ensures Sustainability. The graphic is an educational tool for those who may not be familiar with the rendering process and the sustainability and economic benefits of rendering food waste. With the passing of Senate Bill 1383 in California in 2022, which requires local governments to collect and recycle organic waste, NARA felt it was critical to release this information publicly. Roughly 50 percent of a meat animal is considered inedible by North Americans. This leaves a lot of leftover material that would end up in landfills and increase greenhouse gas emissions. By diverting this organic meat from landfills and sending it to rendering facilities, it ensures this otherwise wasted material, as well as used cooking oil, is safely, hygienically and sustainably processed into safe and clean rendered material for use in new products – so nothing is wasted. The graphic is available on the NARA website. *********************************************************************************** World Food Program Launches Gaza, West Bank Humanitarian Efforts The United Nations World Food Program is deeply concerned by the rapidly deteriorating situation in Israel and Palestine. As the conflict intensifies, civilians, including vulnerable children and families, face mounting challenges in accessing essential food supplies, with food distribution networks disrupted and food production severely hampered by hostilities. The program called for humanitarian corridors on Tuesday as it launched an emergency operation for Gaza and the West Bank. WFP urgently requires access and funding to reach those in need. A total of $17.3 million is needed in the next four weeks to address the situation. On Monday, WFP distributed ready-to-eat food to 73,000 people. Distributions are ongoing daily for displaced people in shelters in Gaza. In the next few days, pending the replenishment of food stocks through the opening of humanitarian corridors, WFP will distribute food to 300,000 people in host communities and make available cash-based-platforms to humanitarian partners. *********************************************************************************** Delivery Innovation Could Reduce Hunger Delivery of food may be the way to increase access in rural America, according to a recent report by CoBank. While roughly one in ten Americans faces food insecurity, rural communities are particularly affected. Rural communities comprise 63 percent of all U.S. counties but 87 percent of the counties with the highest rates of food insecurity. Food delivery has become an expected service for many Americans. However, only 37 percent of rural residents have access to major food delivery services. Delivery mechanisms exist, particularly for shelf-stable food and beverage, even if it takes the form of FedEx, UPS or USPS. Fresh food offerings present another challenge altogether, but more direct-to-consumer approaches should, in the long term, be able to capitalize on improvements in technology to reach those who simply don't live near a grocery store. Further, the report suggests that convenience stores, dollar stores and even liquor stores have been considered as possibilities for reducing food insecurity in more rural areas. *********************************************************************************** Measuring USDA’s National School Lunch Program This week is National School Lunch Week and USDA's Economic Research Service is out with new data about the programs' success. USDA's National School Lunch Program served 4.9 billion lunches in fiscal year 2022, and about 228.9 billion lunches since 1971. Any student in a participating school can get a National School Lunch Program lunch. Typically, students may be eligible for either a free, reduced-price, or full-price lunch, depending on their household's income. Compared with previous years, a higher share of the lunches were served for free or at a reduced price in fiscal years 2020 through 2022. This was in large part because of USDA waivers during the COVID-19 pandemic allowing for meals to be provided free of charge to all students. The onset of the pandemic interrupted the operations of many schools, disrupting the provision of lunches through the NSLP. In response, USDA allowed schools to serve free meals through the Summer Food Service Program or the Seamless Summer Option. *********************************************************************************** Newsom Signs California Food Safety Act California Governor Gavin Newsom last week signed the California Food Safety Act. While delayed until 2027, the legislation bans food products containing brominated vegetable oil, potassium bromate, and red dye 3. Newsom cited similar bans in the European Union in his announcement, saying, "There have been many misconceptions about this bill and its impacts." In referencing a bag of Skittles from the European Union, Newsom claimed it was "demonstrable proof that the food industry is capable of maintaining product lines while complying with different public health laws, country-to-country." The European Union banned the food additives in question following a review in 2008. The California measure requires food makers to reformulate their products to comply with the law when selling them in the state, beginning January 1, 2027. Food manufacturers are unlikely to produce two versions of a product, thus the law is expected to impact products nationwide. Other states are considering similar measures.
| Rural Advocate News | Wednesday October 11, 2023 |
Wednesday Watch List Markets The U.S. Labor Department releases the producer price index for September at 7:30 a.m. CDT Wednesday, one day ahead of the consumer price index. Minutes from the Federal Reserve's meeting in September will become public at 2 p.m. Traders will continue to keep an eye on events in Israel and in Ukraine, as well as the latest weather forecasts. Grain markets may be quiet ahead of Thursday's USDA reports. Weather A storm system will be moving out of the West and into the Plains throughout the day Wednesday. Areas of thunderstorms have already started up in northern Missouri and will spread both west through Nebraska and east through the Midwest throughout the day and especially tonight. Winds will also be a bit breezy in the Plains.
| Rural Advocate News | Tuesday October 10, 2023 |
Mexico Fuels August Pork Exports While Beef Rebounds August U.S. pork exports were steady compared to last year and led by another tremendous performance in Mexico. Data compiled by the U.S. Meat Export Federation says August exports totaled 226,519 metric tons, while export value dropped 1.5 percent to $649.5 million. Exports to Mexico remained at a record pace and set a value record in August at $211.7 million. “I can’t say enough about Mexico’s remarkable demand for U.S. pork and the revenue it generates,” says USMEF President and CEO Dan Halstrom. Exports also trended higher year-over-year to Japan, Canada, Central America, the Dominican Republic, Oceania, and Taiwan. August beef exports totaled 109,000 metric tons: 19 percent lower than last year but a six percent increase from July. Export value hit $884 million, 15 percent below last year but nine percent higher than July. August lamb muscle cut exports dropped 14 percent from last year to 107 million tons. *********************************************************************************** HPAI Confirmed in South Dakota The Animal and Plant Health Inspection Service confirmed that the first commercial case of highly pathogenic avian influenza was discovered in South Dakota. APHIS says the virus was confirmed in a commercial turkey flock of 47,300 birds on October 4. Another case was also recently confirmed in a small non-commercial flock located in Idaho. The Canadian Food Inspection Agency also reported four commercial cases of the virus since mid-September. The most recent case was announced on October 3 in a commercial flock located in Alberta. The agency doesn’t disclose the type of poultry or how many birds were involved in the infection. One of the first clinical signs of HPAI in domestic birds is sudden, unexplainable death. Many infected birds drop their water consumption in the 72 hours that lead up to their unexplainable death. Decreased egg production and depression in layers may be another sign that the birds are ill. *********************************************************************************** Fertilizer Prices Mostly Higher in September The Agricultural Marketing Information System’s October “Market Monitor” report says that fertilizer prices were mostly higher in September, as were the prices for the main fertilizer inputs. Farm Policy News from the University of Illinois says price movements for several fertilizer categories were influenced by strength in the Indian market and uncertainty around exports from China. AMIS also says these two countries will be a major influence on market developments as will demand for the fall application season in the Northern Hemisphere. Fertilizer inputs like natural gas went higher in September. Markets should be focusing on monitoring EU stock levels, which are currently near capacity. Ammonia prices also surged in September, supported by major plant outages. Ammonia buyers also showed unusually strong interest during this time of year that’s normally a quiet period. Nitrogen fertilizer prices rose in September. Urea price increases were driven by concerns about Chinese export levels. *********************************************************************************** Rancher Resilience Grant Helps Producer Attend CattleCon24 The Rancher Resilience Grant offers support to beef and dairy cattle producers by allowing them to attend CattleCon24 and Cattlemen’s College for free. Eligibility depends on qualifications and application responses. The National Cattlemen’s Beef Association says it’s the perfect way for producers to get a ticket to CattleCon and experience the combination of education, events, and fun. All beef and dairy cattle producers are eligible for the Ranchers Resilience Grant. It requires registering for CattleCon24, and applicants must have the Cattlemen’s College Education packet. The first 75 applicants will be awarded a fixed grant designed to ease their way to CattleCon24 and Cattlemen’s College. This grant includes one Education Package Registration and up to three nights of hotel stay in Orlando from January 31 to February 2, 2024. Once CattleCon is over, they’ll make sure your grant reimbursement arrives within 30 days. For more information or to register, go to convention.ncba.org. *********************************************************************************** Third-Quarter Grain Movements Low on Mississippi River Almost 60 percent of the Midwest grain harvest moves down the Mississippi River system to the U.S. Gulf region for export. In The Agricultural Marketing Service’s “Grain Transportation Report,” the agency says low water on the entire system led to draft and tow restrictions on barges, similar to what happened in fall 2022. “From the week ending on July 8 to the week ending on September 30, down-bound barged grain volumes totaled 3.9 million tons,” the report says. “That’s 35 percent lower than the third quarter last year and 53 percent lower than the five-year average.” Last year’s historic low water levels hit from late September through early December. This year’s low water levels began in June, about two months earlier than in 2022, and then continued for most of the third quarter this year. The most severe shipping restrictions are on the lower Mississippi River and Ohio River in Illinois. *********************************************************************************** National Dairy Herd Information Scholarship Applications Open The National Dairy Herd Information Association announced it is accepting applications for $1,500 scholarships. They’ll go to third- or fourth-year College of Veterinary Medicine students. Applicants must be enrolled at a college that’s accredited by the American Veterinary Medical Association Council on Education. To apply for a scholarship, applicants must submit a letter of application and two reference letters. The letter of application requires young people to submit information like their area of specialty/interest, academic background, career plans, and other important information. Scholarship committee members will evaluate applicants based on overall interest as a veterinarian planning to work in dairy, involvement in dairy medicine, extracurricular activities, and interest in dairy software and dairy records to improve dairy management and animal health. Applications are due on December 31. Specific application requirements are on the National DHIA website at dhia.org. Recipients will be announced at the 2024 National DHIA Annual Meeting next year.
| Rural Advocate News | Tuesday October 10, 2023 |
Tuesday Watch List Markets Traders continue to keep an eye on the latest events from Israel and are likely wary about how others will respond. USDA's weekly grain export inspections at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Grain markets may be cautious ahead of Thursday's WASDE report, due out at 11 a.m. CDT. Weather Cool air continues to be settled in across the Midwest on Tuesday. Morning frosts are occurring, and some isolated showers may develop in the Great Lakes. A big system will be moving through the West, which may be enough to start lifting a front northward through the Plains. Some isolated showers and thunderstorms may develop along it, especially Tuesday night across northern Missouri.
| Rural Advocate News | Monday October 9, 2023 |
World Ag Productivity Not Increasing Fast Enough The Global Agricultural Productivity Report says the world’s agricultural productivity is consistently falling short of the target growth rate. Since 2011, productivity isn’t growing fast enough to hit the target growth rate required to sustainably meet global needs for agricultural outputs by 2050. The report says total factor productivity growth continues to be strong in China and South Asia. However, Sub-Saharan Africa and the U.S. show especially low TFP growth. From 2011-2021, global TFP grew at an average rate of 1.14 percent yearly. To sustainably meet the agricultural needs of a growing global population by 2050, the GAP report says the world must now aim for 1.91 percent average annual TFP growth. If producers are able to access proven, appropriate, productivity-enhancing tools, there can be significant improvements in closing the TFP growth gap. Lack of growth may result in over-reliance on unsustainable production practices and continued decline in TFP growth. *********************************************************************************** Food Prices Unchanged in September The U.N.’s Food and Agriculture Organization’s Food Price Index edged lower to 121.5 in September, the lowest level since March 2021. That index was down slightly from 121.6 in August. Prices for vegetable oils were down 3.9 percent, a second decline due to lower prices across palm, sunflower, soy, and rapeseed oils. Dairy prices dropped 2.3 percent, a ninth consecutive fall. Meat costs dropped one percent, led by a drop in pork amid weak export demand from China and ample global export availabilities. Cereal costs increased one percent, including a 5.3 percent rise in coarse grain prices, led by a seven percent climb in maize prices. Also, sugar prices soared 9.8 percent to reach a high last seen in November 2010. The rise in sugar prices came from increasing concerns over a tighter global supply outlook in the upcoming 2023-2024 season and forecasts of increased production declines in Thailand and India. ********************************************************************************** Group of House Republicans Against EATS Act Sixteen members of the House of Representatives pushed back against the Ending Agriculture Trade Suppression Act. The group sent a letter to House Ag Chair Glenn Thompson (R-PA) and Ranking Member David Scott (D-GA). Groups backing the letter included the Organization for Competitive Markets, Competitive Markets Action, National Dairy Producers Organization, and others. “We applaud the representatives for taking a stand against the EATS Act that would sell out American agriculture to China,” says Marty Irby, president of Competitive Markets Action. “The Hinson-Marshall EATS Act is an assault on states’ rights that’s backed by Smithfield, a wholly owned Chinese corporation that continues to rake in billions of dollars by oppressing and exploiting American family farmers.” The groups say if the EATS Act becomes law, it would invalidate hundreds of state and local agriculture laws that support family farmers and hundreds of laws relating to food safety and invasive pest control. *********************************************************************************** 4-H Caucus Co-Chairs Applaud National 4-H Week Resolution The co-chairs of the Senate 4-H Caucus, Debbie Stabenow (D-MI) and John Boozman (R-AR) applauded the Senate adoption of their resolution supporting the designation of “National 4-H Week.” The resolution was introduced by Stabenow and Boozman and supports the designation of October 1-7 as “National 4-H Week.” It recognizes the important role of 4-H in youth development and education and encourages all citizens to recognize 4-H for the significant impact the organization and members have made and continue to make. The organization empowers young people with the skills needed to lead for a lifetime. “As a former 4-H’er myself, I know that 4-H empowers young people to thrive in their communities and grow into future leaders through hands-on health, science, agriculture, and civic engagement projects,” Stabenow says. Boozman says, “I saw firsthand the tremendous impact 4-H has on young people while watching my three daughters get so much out of it.” *********************************************************************************** Food Export Midwest Welcomes FAS Administrator Foreign Agricultural Service Administrator Daniel Whitley toured the Food Export Midwest office in Chicago. “The Foreign Agricultural Services longstanding partnership with Food Export Association of the Midwest USA and Food Export USA-Northeast has helped regional U.S. ag producers enter international markets and introduce their world-class products to new consumers around the globe for nearly 40 years,” he says. “The collaboration between the groups was key to achieving record-breaking exports of U.S. agricultural products and commodities the past two years and puts us on target to have an outstanding 2023.” The FAS Market Access Program allocates funds to Food Export Midwest and Food Export Northeast to help promote American food and agricultural products across the globe. Through these collaborations, USDA helps ensure that small and medium-sized enterprises can take part in trade missions, trade shows, and other export promotion activities designed to help expand their businesses and increase their bottom lines. *********************************************************************************** Missouri River Runoff Near Average in September September brought mixed results for precipitation across the Missouri River Basin. Parts of Montana, North and South Dakota, and Nebraska received above-average rainfall, while the remainder of the upper basin and lower basin were below average. September runoff in the Missouri River Basin above Sioux City, Iowa, was 1.3 million acre-feet, 109 percent of the long-term average. The annual runoff forecast for the upper Missouri River Basin above Sioux City is 29.1-million-acre feet, 113 percent of average, and the same as last month’s forecast. “Rainfall was above average in portions of the Upper Missouri River Basin during September,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Basin Water Management Division. “Runoff was above average or near average in every reach except Sioux City, which was below average. He also says soil moisture conditions have improved in parts of the basin, but many parts remain abnormally dry.
| Rural Advocate News | Monday October 9, 2023 |
Top 5 Things to Watch - WASDE, Possible Frosts on the Watch List OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Oct. 8. Watch for coverage of these and other topics through the week on our subscription platforms. 1. Speaker uncertainty unnerves markets: There's a lot up in the air as the GOP-led House of Representatives tries to escape from its self-watered muck hole. One immediate effect is to make traders ever more skiddish. We'll have ongoing coverage of all the collateral damage around the leaderless House. 2. WASDE week: Thursday we'll cover the October Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Our preview of those reports will be out earlier in the week, as soon as market analyst expectations reports are in. WASDE coverage starts right after the 11 a.m. CDT report release, and we'll have updates throughout Thursday morning. As always, our free webinar on the reports, featuring DTN Lead Analyst Todd Hultman, goes live at 12:30 p.m. You can register for that webinar, including a question and answer session at the end, by going here: 3. Weather systems raise frost concerns: Several cold fronts are moving across the U.S., some with high winds. The real concerns are frosts and freeze warnings, particularly in northern states, during the weekend and into this week. DTN forecasters say central states will have more cloud cover, and rainfall potential, which generally reduces the chance of frost. Cooler weather will continue in most areas through the week. 4. Trade issues gather interest: Recent corn sales to Mexico have been at high pace, we'll monitor how long that trend remains. There's still a longer-term concern that the potential ban on GMO corn -- which at the moment is aimed at food-grade (white) corn, could spread to No. 2 yellow if the country's political winds blow that way. In the meantime, China's demand remains high, despite the fact that U.S. sales to that country are lower than 2022. Just another sign of Brazil's big crop, which is pushing out sales of U.S. beans. 5. Economic reports to watch: Government offices, banks and bond markets are closed Monday for Columbus day. U.S. stock markets and futures markets are open, and DTN reports on those markets will continue through the day. However, USDA weekly grain export inspections (10 a.m. CDT) and Crop Progress reports (3:00 p.m.) will be delayed until Tuesday. On Wednesday, the U.S. Labor Department releases the producer price index for September at 7:30 a.m. Minutes from the Federal Reserve's September meeting are released at 2 p.m. On Thursday, U.S. weekly jobless claims are out at 7:30 a.m., the same time as the consumer price index for September and update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is at 9:30 a.m., followed by the weekly report of energy inventories at 10 a.m. As noted above, October WASDE coverage begins at 11 a.m. Friday will see USDA's weekly export sales reports at 7:30 a.m. The University of Michigan's consumer sentiment index hits at 9 a.m.
| Rural Advocate News | Monday October 9, 2023 |
Monday Watch List Markets On Monday, government offices, banks and bond markets are closed for Columbus Day/Indigenous People Day. U.S. stock and futures markets are open however, starting with their normal opening times on Sunday evening. Traders will check the latest weather forecasts, any harvest reports they can find and news over the weekend from Ukraine. USDA's reports of exports inspections and crop progress will be released Tuesday. Weather A burst of colder air moved through the country over the weekend and continues to spin around the Great Lakes, leading to some frosts in select spots of the Corn Belt Monday morning. Isolated showers may develop near the Great Lakes in the cooler air during the day, otherwise it will be quiet in most areas.
| Rural Advocate News | Friday October 6, 2023 |
Turkey Prices Falling as Thanksgiving Approaches The cost to buy a Thanksgiving turkey could be lower this year, thanks to a drop in avian influenza cases and a recovery of the turkey population in the U.S. Farm Bureau economists analyzed turkey and egg prices and found that the average price for an eight-to-16-pound turkey typically served for Thanksgiving was $1.27 per pound lower than in August 2023. That’s 22 percent lower than the same time last year. “The status of HPAI is different now than it was just a year ago,” the economists say in a Market Intel Report. “Migratory birds are a major vector of this virus, which naturally makes spring and fall migration high-risk times.” June marked the first month with no detections since the outbreak began in February 2022. Egg production also saw a year-to-year increase, with 9.38 billion eggs produced in September 2023, a two percent increase from the same time last year. *********************************************************************************** Ukraine Exports Down Almost 25 Percent Grain exports dropped to 6.82 million metric tons so far from Ukraine in the 2023-2024 marketing year. The ag ministry says Ukraine shipped 8.99 million tons during the same period in the prior marketing year. The first three days of October saw 153,000 tons of exports compared to 297,000 tons a year ago. While the ministry didn’t give a reason for the drop, traders and agricultural unions say the country’s ports on the Black Sea are getting blocked. Russia is attacking ports along the Danube River too. The exported volumes include 3.4 million tons of wheat, 2.7 million tons of corn, and 625,000 tons of barley. The Black Sea grain deal negotiated by the U.N. and Turkey ended in July. Ukraine is expected to harvest a total of 79 million tons of grain and oilseeds in 2023, with the 2023-2024 exportable surplus totals expected to reach about 50 million tons. *********************************************************************************** More Crop Insurance Options for Organic, Specialty Crops The USDA is improving crop insurance options for specialty crop and organic producers, including rolling out new and expanded options based on feedback from America’s producers. “We’re committed to working with specialty crop and organic producers to develop options that fit their needs,” says Risk Management Agency Administrator Marcia Bunger. “We listened to what they said, and we’re proud of our efforts to deliver crop insurance options that meet the needs of producers as well as to share information on available crop options.” From 1990 to 2022, liabilities for insured specialty crops rose from $1 billion to more than $23 billion. Over the past 20 years, the number of individual specialty crops insured under the crop insurance program grew by 27 percent. Currently, there are over 70 individual specialty crops insured under the crop insurance options. New insurance options include the Transitional and Organic Grower Assistance Program and Tropical Storm Coverage. *********************************************************************************** Creelman Named 2024 World Ag Expo Chair The 2024 World Ag Expo season was kicked off recently by Show Chair Stan Creelman. The kickoff dinner in late September was attended by volunteers, staff, and invited guests. It was a chance to get together and set the tone for the coming show. “I’m honored to serve as the 2024 World Ag Expo Chairman,” says Creelman. “There have been so many great leaders before me, so it’s humbling to be here.” The theme is “The Best Farm Show on Dirt.” The annual show is produced by the International Agri-Center, a non-profit focused on year-round agricultural education. Entering its 57th year, World Ag Expo is the largest annual outdoor ag tradeshow in the world. In 2023, the Expo saw 108,223 people come from 49 states and 56 countries. With more than 1,200 exhibitors and 2.6 million square feet of exhibit space, the event provides a platform for networking and education. *********************************************************************************** AFT Calling Attention to Farming on PBS American Farmland Trust will sponsor the new PBS national public series “America the Bountiful” with its premiere planned for spring 2024. The new project is a food, history, and travel series exploring the regional food traditions of America’s Heartland. It will help viewers learn more about culture and find inspiration in the chronicles of farmers, artisans, restauranteurs, and home cooks through the bounty they grow, produce, and eat. The show will shine a spotlight on the vibrant, culturally diverse, untold food stories and traditions hidden across America. “We’re focused on saving the land that sustains us all, and our new partnership with “America the Bountiful” will help us reach an important PBS audience of engaged and committed conservationists, farmers, and food lovers across the country,” says AFT President and CEO John Piotti (Pe-OHT-tee). “We’re excited to further educate people about the importance of farmland protection and sound agricultural practices.” *********************************************************************************** Washington Clean Fuel Standard Impressive in First Quarter The Washington Clean Fuel Standard is off to an impressive start with the release of its first-quarter results for the number of credits generated by alternative low-carbon fuels. These figures demonstrate the program’s commitment to reducing carbon emissions, supporting local economies, and fostering a unified market for biomass-based diesel on the West Coast. Preliminary data shows that biodiesel and renewable diesel contributed around 22 percent of the credits indicating an approximate 1.2 percent blend rate. In comparison, when California first implemented its Low Carbon Fuel Standard, the state saw a blend rate of 0.4 percent for biodiesel and renewable diesel in the first year. Replicating California’s fuel standard, Washington adopted their own Clean Fuel Standard in 2021 in an effort to reduce carbon intensity in the transportation sector, the state’s largest source of greenhouse gas emissions. The program provides credits for low-carbon fuel alternatives that improve air quality and economic growth.
| Rural Advocate News | Friday October 6, 2023 |
Friday Watch List Markets The U.S. Labor Department reports on non-farm payrolls and the unemployment rate for September at 7:30 a.m. CDT Friday, another possible threat to interest rate concerns. Traders will continue to keep watch over the latest weather forecasts, any harvest reports and news from Ukraine where the war remains hard-fought. Weather A cold front continues to push through the eastern Midwest and Northeast Friday, with the southern end dragging through the Southeast. Both have some showers with them. Cold air is quickly filling in behind the front and produced widespread frosts and freezes Friday morning in the northwestern Plains. That will spread to most of the Central and Northern Plains for Friday night. In the cold air, isolated showers will develop across the Midwest.
| Rural Advocate News | Thursday October 5, 2023 |
Weakening Crop Prices and High Production Costs Weigh on Farmer Sentiment Agricultural producers’ sentiment declined for the second month in a row during September. The Purdue University-CME Group Ag Economy Barometer fell nine points to a reading of 106. Producers expressed concern about both their current situation as well as future prospects for their farms. The Current Conditions and Futures Expectations Indices both declined ten points in September, leaving the Current Conditions Index at a reading of 98 while the Future Expectations Index stood at 109. Weakening prices for major crops and ongoing concerns about high production costs and interest rates weighed on producers' minds this month. September's declines left all three indices below year-ago levels. Despite the weak sentiment reading, producers remain relatively optimistic about farmland values as expressed by both the short and long-term farmland values indices. The September survey also included several questions to learn more about cover crops. Just over half of the corn and soybean growers surveyed said they currently plant cover crops on a portion of their acreage. *********************************************************************************** USDA Announces Support for Underserved and Veteran Farmers and Ranchers The Department of Agriculture Wednesday announced $27.6 million in grants for underserved and veteran farmers, ranchers, and foresters. The funding will provide training, outreach and technical assistance to help them own and operate successful farms, ranches, and forest lands. The funding is made through USDA's 2501 Program, administered by the USDA Office of Partnerships and Public Engagement. In 2023, the funding supports grants to 41 organizations in 27 states for their efforts to provide outreach and technical assistance to underserved and veteran farmers and ranchers. The 2501 Program was created through the 1990 Farm Bill to help underserved farmers, ranchers and foresters who have historically experienced limited access to USDA assistance. The 2014 Farm Bill expanded the program to include veterans. Grants are awarded to higher education institutions and nonprofit and community-based organizations to extend USDA's engagement efforts in underserved and veteran communities. Since 2010, the 2501 Program has provided more than $221 million to fund more than 657 projects. *********************************************************************************** APHIS Celebrates ASF Preparedness and Prevention USDA’s Animal and Plant Health Inspection Service is celebrating its many successful efforts to prevent African swine fever from reaching the United States. In honor of ASF Action Week, APHIS is recognizing the continuing efforts to prevent this deadly swine disease from reaching our shores. USDA's Dr. Rosemary Sifford says, “The United States has always had a system of interlocking safeguards in place to protect against foreign animal diseases, however the spread of ASF abroad made us review and strengthen our protections.” Some of the agency’s major accomplishments in these areas include enhancing existing safeguards, strengthening Customs and Border Protection partnerships, and further collaboration with states, industry and producers. APHIS continues to conduct surveillance for ASF in domestic and feral swine in the mainland United States. Since August 2021, APHIS has tested almost 6,000 samples from higher-risk domestic herds, and more than 26,000 case-compatible samples from veterinary diagnostic laboratories and production facilities. *********************************************************************************** Climate Center Develops Soil Temp Climatology Tool The Midwestern Regional Climate Center is launching a new tool in partnership with the Department of Agriculture's Midwest Climate Hub. The tool will provide soil temperature threshold information based on historical data from the last 30 years. The Soil Temperature Climatology Tool will be crucial for the agricultural industry to better identify benchmark dates for when specific agronomic activities, such as planting and applying nutrients, should take place. Data for the tool was sourced from the North American Regional Reanalysis, a model produced by the National Centers for Environmental Prediction that generates data for temperature, wind, moisture, soil and dozens of other parameters. Widhalm said using data from NARR was necessary because several areas across the Midwest lack substantial soil temperature measurements. These soil temperature estimates provide for an accurate historical perspective. While the Soil Temperature Climatology Tool was developed with the farming community in mind, the data this tool provides will be useful for several other production areas. Find the tool on the MRCC website. *********************************************************************************** National Dairy FARM Program Launches Enhanced Biosecurity Initiative The National Dairy Farmers Assuring Responsible Management Program Wednesday announced the launch of FARM Biosecurity – Enhanced. The project is a new aspect of the FARM Biosecurity Program that includes training and an online database. FARM Biosecurity – Enhanced, includes an online database to develop and securely store dairy producers’ enhanced biosecurity plans and an online training that helps users write those plans. FARM has also developed a FARM Biosecurity – Enhanced Biosecurity Prep Guide and Database User Guide to complement these tools. Stronger, or enhanced, levels of biosecurity will be needed to protect cattle against the highly contagious foot-and-mouth disease found in two-thirds of the world. One FMD case in the United States could shut down movement across the nation of livestock and their products for at least 72 hours. To learn more about the FARM Program or access protocol templates and training aids, visit the FARM website: nationaldairyfarm.com. *********************************************************************************** Households That Earn Less Spend a Higher Share of Income on Food Households spend more money on food as their incomes rise, but the amount spent represents a smaller share of their overall budgets, according to USDA’s Economic Research Service. When U.S. households were divided into five equal groups by household income, households in the lowest income group had an average after-tax income of $16,337 and spent an average of $5,090 on food, or about $98 a week, in 2022. Households in the highest income group, with an average after-tax income of $196,794, spent an average of $15,713 on food, about $302 a week. As households gain more disposable income, they often shift to more expensive food options. Food spending as a share of income rose across all income groups in 2022 as food prices increased faster than the overall inflation rate. In 2022, food spending represented 31.2 percent of the lowest groups’ income, 13.4 percent of income for the middle group, and 8.0 percent of income for the highest group.
| Rural Advocate News | Thursday October 5, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, the U.S. trade deficit for August and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Weather A cold front continues to push eastward through the Midwest and south through the Southern Plains and Delta on Thursday, producing areas of showers and thunderstorms. A second front moved through the Northern Plains overnight and will continue to move in behind the primary front through Friday with much colder air coming in and some isolated showers of its own. Breezy winds are also expected.
| Rural Advocate News | Wednesday October 4, 2023 |
NPPC Wants Input on Swine Traceability U.S. pork producers tasked the National Pork Producers Council with leading an effort to update the existing swine traceability system. NPPC wants swine producers, veterinarians, cull swine and breeding operators, and show pig enthusiasts to comment on the draft standards by October 27. “Approximately one million pigs are in transit every day, giving diseases plenty of opportunities to spread,” says Scott Hays, NPPC president and Missouri pork producer. “With the growing threat of a foreign animal disease reaching the U.S., the need to address gaps in our existing traceability system is important for our farms and industry.” International markets would close immediately if a foreign animal disease were discovered in the U.S. “With $7.7 billion worth of pork being sold to international consumers, we need to assure our trading partners that we can identify disease-free animals and provide products from unaffected farms,” Hays adds. For more information, go to nppc.org/trace. *********************************************************************************** NCBA Helps Secure Passage of Animal Health Priority The National Cattlemen’s Beef Association hailed the reauthorization of the Animal Drug User Fee Act. The act allows the FDA’s Center for Veterinary Medicine to collect fees from animal health companies, which fund the agency’s review and approval process for new animal drugs. ADUFA ensures that FDA has an efficient system for authorizing new cattle medicines and diagnostic tools that keep livestock healthy and protect our safe, wholesome food supply. “Keeping our livestock healthy is on every cattle producer’s mind,” says NCBA President Todd Wilkinson. “NCBA made this reauthorization a top priority at the 2023 Cattle Industry Convention, and I’m proud to see our team’s hard work pay off.” NCBA Chief Veterinarian Kathy Simmons says drug innovations are happening every day. “This ensures that FDA has the resources it needs to review these new technologies for safety and efficacy and to bring them to market for cattle producers,” Simmons says. *********************************************************************************** Wolle Takes Over as New NCGA President Harold Wolle (WOLL-lee), a Minnesota farmer, officially took over as the new president of the National Corn Growers Association. Wolle has several goals in mind, saying that reauthorizing a farm bill that reflects the priorities of corn growers will be a pressing concern. He also plans to push for more support of the Next Generation Fuels Act in the House and Senate while making ethanol a go-to biofuel in the aviation sector. “My theme as president is ‘Shaping the Future,’ and nothing shapes the future like effective advocacy,” Wolle says. “And no other group does advocacy as well as our state corn grower groups and the NCGA.” Wolle has a lot of experience in many issues important to corn growers. He's served on NCGA committees and the organization’s board, including as a board liaison to the National Corn-to-Ethanol Research Advisory Board. He’s also past president of the Minnesota Corn Growers. *********************************************************************************** Registration Open for the 2024 ASI Annual Convention Registration is now open for the 2024 American Sheep Industry Association’s Annual Convention in Denver, Colorado, January 10-13. Early-bird registration rates are available through December 8. Online registrations must be finished by December 18. The ASI annual convention is the one time each year when all facets of the American sheep industry come together to discuss timely and important topics for sheep and wool producers, as well as those working in the meat, wool, and sheepskin sides of the overall industry. “We’re putting together an exciting program of events at a first-class venue,” says ASI Executive Director Peter Orwick. “We encourage anyone with an interest in the industry to register and attend as we work through the business of the association and educate leaders on important topics ranging from marketing and government policy to sheep health and genetics.” It’s also a great networking opportunity for farmers, ranchers, traders, and processors. *********************************************************************************** New Crop Insurance Program for Controlled Environments The USDA is announcing a new crop insurance program designed for agricultural producers using controlled environments in their operations. The new Controlled Environment Program from the Risk Management Agency is specifically for plants grown in fully enclosed environments and provides coverage against plant diseases subject to destruction orders. Available beginning in the 2024 crop year, the program provides a risk management resource for urban, specialty crop, and organic producers who often use controlled environments as a major part of their operations. “We are always looking to expand and improve the crop insurance resources we offer to producers,” says RMA Administrator Marcia Bunger. “Controlled environment agriculture is a quickly growing sector in the nation’s food production, and this new option is part of USDA’s broader effort to support urban agriculture and new and better markets for American producers.” The first sales closing date is December 1. For more information, go to rma.usda.gov. *********************************************************************************** Meeker Reelected to Lead Sorghum Association The National Sorghum Producers Board of Directors reelected officers and a new director at its annual board and budget meeting in August. Craig Meeker of Wellington, Kansas, will serve a second term as Chair, Amy France of Scotty City, Kansas, will continue to serve as vice chair, and Kody Carson of Olton, Texas, retains his position as past chair. “The executive leadership team has represented sorghum farmers exceptionally well this past year, and we look forward to following their leadership in 2024,” says NSP CEO Tim Lust. “As we near more concentrated farm bill debate and other issues pressing sorghum farmers and the industry, Craig, Amy, and Kody serve as a shining example of dedication and expertise, guiding us toward a more prosperous and sustainable future for sorghum in the United States.” He also says the sorghum industry is fortunate to have them at the industry’s helm during an important time.
| Rural Advocate News | Wednesday October 4, 2023 |
Wednesday Watch List Markets A report on U.S. factory orders is due out at 9:00 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. CDT, including ethanol production. Traders will remain interested in the weather, harvest reports and news from Ukraine. Weather A strong cold front continues to move eastward through the country Wednesday. The northern end will move through the central Midwest, the southern end through the Southern Plains. Both areas will have scattered showers, but the Southern Plains could find some severe weather. A stronger burst of cold air will move into the Canadian Prairies, with its eyes on the U.S. for later in the week.
| Rural Advocate News | Tuesday October 3, 2023 |
Corteva, Bayer, Supply Majority Corn, Cotton and Soybean Seeds Two companies—Corteva and Bayer—provided more than half the U.S. retail seed sales of corn, soybeans, and cotton in 2018–20, according to USDA’s Economic Research Service. In recent decades, the U.S. crop seed industry has become more concentrated, with fewer and larger firms dominating seed supply. Today, four firms—Bayer, Corteva, ChemChina’s Syngenta Group, and BASF—control the majority of crop seed and agricultural chemical sales. In 2015, six firms led global markets for seeds and agricultural chemicals. The concentration can be traced to the expansion of intellectual property rights to private companies for seed improvements in the 1970s and 1980s. As biotechnology advanced, companies created genetically modified seed varieties, such as herbicide-tolerant or insect-resistant corn, soybeans, and cotton. Mergers occurred between companies that produced and sold pesticides, seed treatments, crop seeds, and seed traits. As a result, the U.S. crop seed sector has become highly integrated with agricultural chemicals and more concentrated. *********************************************************************************** Farm Real Estate Market Holding Steady As combines roll into fields this fall, there is a renewed sense of optimism when looking at the real estate market. The current state of the ag land market is resilient, and the demand for high-quality farmland remains strong in the face of higher interest rates and lower commodity prices, according to Farmers National Company. However, the market will likely return to a more normal flow, evidenced by the slowdown of the appreciation rate of ag land, as well as the sales volume at Farmers National Company. Regional drought pressure across portions of the Corn Belt have also softened short-term demand for land. Areas highly impacted by the drought have seen seasonal pressure, with the lowest-quality farms impacted the most, while demand for higher-quality land has remained stable. The solid demand for ag properties from people interested in expanding their farm operations or investment opportunities seems to be driving the interest in high-quality cropland. *********************************************************************************** USDA Restricts Poultry Imports from France, EU The Department of Agriculture recently placed restrictions on the importation of poultry from France and the European Union. The restrictions, enacted by USDA’s Animal and Plant Health Inspection Service, include live ducks, duck eggs, and unmitigated or untreated duck products from the APHIS-recognized European Poultry Trade Region, as well as Iceland, Switzerland, Liechtenstein, and Norway, but excluding Great Britain. The restrictions are due to increased risk of introducing Highly Pathogenic Avian Influenza into the United States and were enacted October first. The restrictions are based on the World Organization for Animal Health's definition of poultry and result from France's decision to vaccinate commercial meat ducks against HPAI. France’s decision to vaccinate presents a risk of introducing HPAI into the United States. The United States does not currently allow the import of poultry from countries affected with HPAI or from flocks that have been vaccinated by HPAI. *********************************************************************************** Dairy Margin Coverage Provides Critical Support for Dairy Operations The August milk margin triggered the eighth consecutive payment for dairy producers who obtained Dairy Margin Coverage for the 2023 program year. August's income over feed margin is $6.46 per hundredweight, with projected DMC payments totaling $120 million. To date, including the projected August payments, dairy producers have received more than $1.2 billion in much-needed economic support for 2023, and margin forecasts indicate the likelihood of more to come before the end of the calendar year. USDA Farm Service Agency Administrator Zack Ducheneaux says, "While livestock and crop producers alike have been financially impacted by catastrophic natural disaster events, dairy producers' financial stressors have been compounded by significant market volatilities." DMC is a voluntary risk management program administered by USDA's Farm Service Agency that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. *********************************************************************************** USDA Announces Weaned Calf Risk Protection USDA recently announced Weaned Calf Risk Protection, a new insurance option for livestock producers in several states. This policy, offered by USDA's Risk Management Agency, offers Actual Production History coverage for beef cow-calf producers to ensure revenue from their spring calving operations. Weaned Calf Risk Protection will be available for the 2024 crop year. The policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease. Coverage is provided for a decline in price and loss of yield due to a decrease of overall weaning weight, like revenue coverage offered for other crops. The program will be available in Colorado, Nebraska, South Dakota, and Texas, beginning with the January 31, 2024, sales closing date for the 2024 crop year. Coverage levels between 50 and 85 percent will be available, along with catastrophic coverage. Interested producers should contact their local RMA office. *********************************************************************************** Weekly Fuel Prices Decline Again For the second straight week, the nation's average price of gasoline fell, posting a decline of 3.5 cents from a week ago to $3.77 per gallon, according to GasBuddy. The national average is up 2.8 cents from a month ago and 1.0 cents per gallon lower than a year ago. The national average diesel price fell 0.7 cents last week and is $4.52 per gallon, 36.2 cents lower than one year ago. GasBuddy's Patrick De Haan says, "we're likely to see nearly the entire country see gasoline prices trend lower in the week ahead." After bouncing around near and above $90 for the last few weeks, oil has not maintained its upward trend as renewed fears about further interest rate hikes lower demand prospects in the months ahead. Meanwhile, OPEC+ plans to hold the line on its current production levels at a key meeting this week.
| Rural Advocate News | Tuesday October 3, 2023 |
Tuesday Watch List Markets There are no significant reports due out Tuesday. Traders will continue to watch over the latest weather forecasts, harvest anecdotes and any news out of Ukraine. Weather A frontal boundary is moving into and through the Plains Tuesday, creating areas of showers and thunderstorms from north to south. Showers will move into the western Midwest overnight. A significant drop in temperatures will occur behind the front, but it continues to feel like summer ahead of it.
| Rural Advocate News | Monday October 2, 2023 |
Corn and Soybean Ending Stocks Lower in 2023 The USDA’s National Agricultural Statistics Service released its Grain Stocks report that showed lower numbers for corn and soybeans. Old crop corn stocks on hand as of September 1 totaled 1.36 billion bushels, one percent lower than the same time last year. Old crop soybeans stored in all positions were down two percent from September 1, 2022, and all wheat stocks were up slightly from a year earlier. Of the total corn stocks, 605 million bushels were stored on farms, 19 percent higher than last year. Old crop soybeans stored in all positions on September 1, 2023, totaled 268 million bushels, two percent lower than last year. Soybean stocks stored on farms totaled 72 million bushels, up 14 percent from a year ago. All wheat stored in all positions on September 1 totaled 1.78 billion bushels, up slightly from September 1, 2022. On-farm stocks were one percent higher than in 2022. *********************************************************************************** USDA Issues 2023 Small Grains Summary All wheat production totaled 1.81 billion bushels in 2023, up ten percent from last year’s total of 1.65 billion bushels. The harvested area totaled 37.3 million acres, up five percent from the previous year. The U.S. yield was estimated at 48.6 bushels an acre, 2.1 bushels higher than in the prior year. The levels of production and changes from 2022 by type were winter wheat, at 1.25 billion bushels, was up 13 percent from last year. Other spring wheat totaled 505 million bushels, up five percent, and Durum wheat production hit 59.3 million bushels, seven percent lower than the previous year. Oat production was estimated at 57 million bushels, one percent lower than 2022 totals. USDA estimated the yield at 68.6 bushels an acre, 3.8 bushels higher than the previous year. Barley production hit 185 million bushels; six percent higher than in 2022, and yield was 72.4 bushels an acre. *********************************************************************************** Drought Monitor Shows Improvements After Rainfall Western parts of the Midwest were inundated with heavy rains while the eastern part received little to no moisture. Large areas in Minnesota and Wisconsin and parts of Iowa, Illinois, and Missouri all received two inches or more. Abnormal dryness and moderate to exceptional drought were reduced in these areas. Meanwhile, drought continued expanding over Indiana, Ohio, and Kentucky, and in parts of Missouri, Michigan, and Illinois. Northern and eastern parts of the High Plains region received as much as two inches of rainfall, while parts of Wyoming and Kansas stayed dry. Drought conditions contracted in North and South Dakota and Nebraska. In the South, bands of heavy rain fell in eastern Oklahoma, western Arkansas, and the Louisiana and Texas borders with Arkansas, with some amounts topping five inches of rain. But the western half of Texas and Oklahoma, along with much of Mississippi and Tennessee received little to no rain. *********************************************************************************** Legislation Will Require Crop Insurance Transparency Looking for less secrecy in the Crop Insurance Program, representatives Earl Blumenauer (D-OR) and Ralph Norman (R-SC) introduced the Crop Insurance Transparency Act. If passed, it would require USDA to publicly disclose the names of producers and insurers who receive federal crop insurance subsidies and the amount received. “At a time when federal crop insurance payments are at an all-time high, it is an abject failure that a majority of our small farmers and ranchers do not even have access to the crop insurance safety net,” says Blumenauer. “Reform begins with accurate and transparent information.” Norman adds that one-third of all crop insurance subsidies don’t make it to farmers, but instead go to massive insurance companies. “Millionaires and billionaires are likely receiving crop insurance subsidies at a time when most farmers are struggling to get by,” says Scott Faber of the Environmental Working Group. “It’s time to lift this veil of secrecy.” *********************************************************************************** U.S. Hog Inventory Rises Slightly The U.S. inventory of all hogs and pigs on September 1, 2023, was 74.3 million head. That was slightly higher than September 1, 2022, and up two percent from June of this year. The breeding inventory was 6.08 million head, down one percent from last year and one percent from the previous quarter. The market hog inventory was 68.2 million head, slightly higher than last year and two percent higher than the previous quarter. The June-August pig crop was 34.2 million head, slightly higher than in 2022. Sows farrowing during the period totaled 2.95 million head, down four percent from 2022. U.S. hog producers intend to have 2.93 million sows farrow between September and November, down five percent from the actual farrowings during the same period a year earlier. Intended farrowings between December 2023 and February 2024 total 2.91 million sows, down one percent from the same period a year ago. *********************************************************************************** State Attorneys General Against the Eats Act A coalition of 16 State Attorneys General sent letters to Congressional leadership regarding the EATS Act. Sponsors of the Ending Agricultural Trade Suppression Act have positioned the bill as a regulatory solution, but it will undermine states’ rights to regulate agriculture within their local jurisdictions and nullify numerous state and local laws that already exist. Those hundreds of laws that would be invalidated support family beef, dairy, egg, and pork producers, as well as hundreds of laws related to food safety and invasive pest control. The letter states that, “For over 200 years, state and local governments have been responsible for ensuring that there is a safe and healthy food supply for their consumers and that locally sold farm products are governed by locally accountable elected officials.” Groups like the Organization for Competitive Markets and Competitive Markets Action say the Act would up-end the crucial balance between state and federal authority.
| Rural Advocate News | Monday October 2, 2023 |
Top 5 Things to Watch - Government Shutdown Avoided, Record-Breaking Heat May Turn to Frost Later in Week OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Oct. 1. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Grain trade reaction: How will traders respond to the weekend political moves to avoid government shutdown for now with a 45-day funding bill that President Joe Biden signed late Saturday? That will be a key focus for the week, starting with grain comments available to DTN subscribers Sunday night. 2. Weather messes with harvest: Some areas of the Corn Belt had record heat during the weekend. However, if you caught the Sept. 29 Ag Weather Forum, you know DTN's weather models all did an about-face mid-afternoon. That ushers in a strong cold front expected Oct. 3-6, which will produce showers and thunderstorms up and down the Plains to the Mississippi Valley. There may even be frost by the end of the week. I 3. Low rivers still an issue: Despite the potential for rains, we're continuing to track low river levels in the Mississippi Valley. 4. Digging into the details: DTN's Clayton will dig deeper into what was decided by the government during the weekend and assess what are the consequences. What is being funded, what still hasn't been decided, and what will this mean for farmers and ranchers? 5. Reports this week: Here's what is tentatively expected to come out this week, based on the government shutdown being avoided. We'll update if we hear more. Monday, International manufacturing indices reports trickle in overnight, joined by the U.S. report at 9 a.m. CDT. USDA's weekly grain export inspections hit at 10 a.m., followed by NASS Fats and Oil report at 2 p.m. and weekly Crop Progress at 3 p.m. On Tuesday, U.S. new home sales are released at 7:30 a.m., followed by U.S. consumer confidence at 9 a.m. Wednesday, we'll watch U.S. factory orders at 9 a.m., with the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. On Thursday USDA's weekly export sales are due at 7:30 a.m., as is weekly U.S. jobless claims, the U.S. trade deficit for August and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is at 9:30 a.m. Friday we hope to see the U.S. Labor Department reports on non-farm payrolls and the unemployment rate for September at 7:30 a.m.
| Rural Advocate News | Monday October 2, 2023 |
Monday Watch List Markets Back from the weekend, traders will catch up on the latest weather forecasts and have likely heard the deadline for a possible U.S. government shutdown has been moved to November 17. International reports of manufacturing indices will trickle in overnight and be joined by the U.S. report at 9 a.m. CDT. USDA's weekly grain export inspections will be out at 10 a.m. CDT, followed by NASS's Fats and Oil report at 2 p.m. and Crop Progress at 3 p.m. Weather Hot temperatures east of the Rockies will be near daily records in many locations. Some isolated showers may develop in the Plains, otherwise the country will be rather dry as well.
| Rural Advocate News | Friday September 29, 2023 |
USDA Sees Record Demand to Advance Clean Energy in Rural America The Department of Agriculture reports record demand for funding to advance affordable and reliable clean energy in rural America. Agriculture Secretary Tom Vilsack says, “The Inflation Reduction Act is driving investment in rural communities across the nation, particularly in places that for too long have been left out or left behind.” The Inflation Reduction Act made nearly $13 billion available to support clean energy infrastructure for rural America through USDA Rural Development programs. In May, USDA made $9.7 billion available under the New Empowering Rural America program for member-owned rural electric cooperatives, and received 157 proposals from nearly every state. Also in May, USDA made $1 billion available under Powering Affordable Clean Energy to fund new clean energy projects and energy storage in rural America. So far, USDA has received requests for more than $7.8 billion through letters of interest. USDA has also seen substantially more interest than funding available under the Inflation Reduction Act in USDA’s Natural Resources Conservation Service. *********************************************************************************** Animal Rights Groups Welcomes Bill to End Milk Mandate Legislation introduced recently would give kids a nutritionally equivalent, plant-based milk option to cow’s milk in the National School Lunch Program. Welcomed by animal rights groups, the Addressing Digestive Distress in Stomachs of Our Youth Act requires public schools to offer a nutritionally equivalent soy milk option and allows USDA to reimburse schools for those purchases, just as it does for cow's milk. Animal Wellness Action President Wayne Pacelle says, “The federal government is overreaching by subsidizing and promoting milk beyond its natural appeal to consumers.” Under law, USDA provides a reimbursement of $1 billion for cow’s milk to public schools across the country, placing a carton of milk on every tray. Earlier this year, the National Milk Producers Federation responded, “The latest ploy among the vegan, animal rights and plant-based lobbies is to suddenly paint themselves as social justice crusaders, demanding that their nutritionally inferior products should now be treated as legitimate milk substitutes in federal nutrition programs.” *********************************************************************************** Federal Complaint Alleges Environmental Violations by eBay The Environmental Protection Agency and Department of Justice this week filed a complaint against eBay. The complaint alleges eBay allows the unlawful selling of pesticides, violating the Clean Air Act, the Federal Insecticide, Fungicide, and Rodenticide Act, commonly known as FIFRA and the Toxic Substances Control Act. FIFRA prohibits the unlawful distribution or sale of unregistered, misbranded, and restricted-use pesticides, and authorizes EPA to issue Stop Sale, Use, or Removal Orders. The complaint also alleges that eBay has unlawfully distributed or sold at least 23,000 such products, and that some of those sales directly violate a stop sale order issued to eBay in 2020 and amended in 2021. Examples of these pesticides include a high-toxicity insecticide banned in the U.S., restricted-use pesticides that only certified applicators may apply, and products fraudulently claiming to protect users against SARS-CoV-2. The complaint also targets aftermarket parts that defeat motor vehicle emission controls. *********************************************************************************** 2022 Potato Production Down 3 Percent The Department of Agriculture this week released the 2022 Potatoes Summary. The report presents potato estimates of acreage, yield per acre, production, farm disposition, season average price, value, and utilization of sales, including processing for the 2022 season. All potato production in 2022 totaled 399 million hundred-weight, down three percent from the 2021 crop. Harvested area, at 911,400 acres, was down one percent from 2021. The average yield of 438 hundred-weight per acre was down six hundred-weight from the previous year. The value of all potatoes sold in 2022, at $4.80 billion, increased 23 percent from the previous year. The average price, at $12.90 per hundred-weight, was up $2.70 from 2021. The quantity of potatoes sold from the 2022 crop totaled 373 million hundred-weight, down three percent from 2021. Potatoes used for chips increased three percent, while frozen French fries utilization dropped one percent, and dehydrated potatoes fell seven percent. *********************************************************************************** Turkey Growers Increase Flock Size While U.S. Trade Representative Katherine Tai visited a North Carolina Turkey Farm to celebrate market access to India, USDA reported increased turkey production this week. The September USDA Turkey Raised report indicated a four percent increase from 2022. Turkeys Raised in the United States during 2023 is forecasted at 219 million this month. The top six states account for 68 percent of the turkeys produced in the United States during 2023. The largest turkey-producing state is Minnesota, at 39.0 million turkeys, up five percent from the previous year. North Carolina produced 29.0 million turkeys, up four percent from a year ago. Arkansas produced 27.5 million turkeys, up six percent from last year. Indiana produced 20.0 million turkeys, unchanged from last year. Missouri produced 18.0 million turkeys, up six percent from last year, and Virginia is up one percent from the previous year at 15.4 million turkeys. Turkeys raised preliminary estimates include young turkeys intended for meat production and breeder turkeys reaching maturity during the calendar year. *********************************************************************************** USDA: Lower Income Countries Spend More on Food Consumers in low-income countries spend a greater proportion of their budgets on food than those in higher-income countries, according to USDA’s Economic Research Service. As incomes rise with economic development and urbanization, the share of income spent on food tends to fall, while discretionary spending on household goods, education, medical services, and recreation tends to increase. In low-income African and South Asian countries, spending on food accounted for more than 40 percent of total consumer expenditures in 2022. This contrasts with higher-income economies in Latin America, including Argentina, Colombia, and Mexico, where an average of about 22.5 percent of budgets was spent on food. In emerging markets such as Brazil, India, and China, where incomes are rising, the share of discretionary income spent on nonfood categories has increased. In higher-income economies, including the United States, Switzerland, Australia, and Canada, disposable incomes remain larger, and the food share of consumer expenditures is smaller than those in countries where urban communities are still expanding.
| Rural Advocate News | Friday September 29, 2023 |
Friday Watch List Markets The Federal Reserve's favorite inflation indicator, the PCE index is due out at 7:30 a.m., the same time as reports on U.S. personal income and consumer spending. USDA's September 1 Grain Stocks and Small Grains Summary are both due out at 11 a.m. CDT Friday, followed by DTN's webinar at 12:30 p.m. Weather A frontal boundary moved into the Northern Plains Thursday and will largely stall there into Minnesota for Friday. Pockets of scattered showers and thunderstorms will be possible in these areas. Some isolated showers may pop up farther south across the Plains as well. Temperatures south and east of the front will continue to climb higher.
| Rural Advocate News | Thursday September 28, 2023 |
Americans Want Their Food Produced Domestically A new survey from the American Sugar Alliance shows American voters recognize the importance of agriculture. The poll says they want Congress to prioritize American farmers in the next farm bill, provide them with a strong and reliable safety net, and protect them from foreign businesses that could displace American farmers and workers and disrupt our national food supply. Almost two-thirds of the respondents in the survey say the nation’s food supply should be less dependent on foreign suppliers. The results cut across political parties and geographical regions. As far as where America should buy its sugar from, eight times as many voters preferred American-made sugar compared to those who preferred imported sugar. “Clearly, voters value domestic sugar production and don’t want to depend on foreign suppliers for an essential food ingredient,” says Cassie Blaedow, Chair of the American Sugar Alliance. Approximately 11,000 family farmers raise sugar beets and sugarcane. *********************************************************************************** USDA Will Begin Issuing $1.75 Billion in Emergency Relief The USDA began issuing more than $1.75 billion in emergency relief payments to eligible farmers and livestock producers. These much-needed payments are helping farmers and ranchers recover following natural disasters in 2020, 2021, and 2022. “USDA provides substantial economic support for America’s farmers and ranchers through its critical farm payments,” says Ag Secretary Tom Vilsack. “These payments reflect the incredible and cumulative financial hits brought on by devastating natural disasters which agricultural producers nationwide have endured while fulfilling their commitment to produce our food, fiber, and fuel.” He also says the additional assistance offsets tremendous losses and is a valuable investment not only for farmers and ranchers but also for the economic success of rural and urban communities and our nation’s food security for generations to come. This week, the Farm Service Agency will issue more than $581 million in 2021 and 2022 drought and wildfire emergency relief to eligible ranchers. *********************************************************************************** Merck Awards Scholarships to Future Veterinarians Merck Animal Health announced it has awarded $90,000 in scholarships to 18 bovine veterinary students in partnership with the American Association of Bovine Practitioners. Scholarship recipients were selected based on their academic achievements, career goals, work experience, and interest in veterinary medicine. The scholarships were recently given out during the 2023 AABP Annual Conference in Milwaukee, Wisconsin, with each winner getting $5,000. “Merck Animal Health is proud to honor these veterinary students who represent the future of our field and the cattle industry,” says Justin Welsh, DVM and executive director of livestock technical services for Merck. Fred Gingrich, DVM and executive director of AABP, says he’s very excited about what the future holds for these outstanding students and the talents and skills they will bring to the veterinary profession as they embark on their careers. “We are incredibly grateful to Merck Animal Health for its continued partnership and support,” Gingrich says. *********************************************************************************** Legislation Helps Organic Producers Meet Growing Demand New legislation was introduced in both chambers of Congress to give organic producers the tools they need to increase their capacity, reach new markets, and grow their businesses. The Organic Market Development Act would codify and increase support for a newly announced USDA program that aims to solve supply chain gaps for the organic market through grants to farmers and businesses as demand increases for organic products. In 2021, U.S. sales of organic food products reached $52 billion, nearly doubling the sales done in 2010. Senate bill sponsor Tammy Baldwin (D-WI) says the legislation will build on the success of the Organic Market Development Grant Program and allow more producers to access these resources and tools to grow America’s agriculture economy. The legislation builds on the initial $75 million annual authorization by maintaining the base CCC investment and adds $25 million in appropriations for 2024 and each fiscal year thereafter. *********************************************************************************** NCGA Campaign Call for a Level Playing Field The National Corn Growers Association launched a grassroots advocacy campaign to encourage the National Highway Traffic Safety Administration to provide a level playing field for biofuels like ethanol. The organization wants corn growers and advocates to make their voices heard by submitting comments to the agency. The campaign comes after NHTSA proposed hiking the Corporate Average Fuel Economy Standard, referred to as the CAFÉ Standard. It regulates how much fuel a vehicle consumes per mile. The agency’s current proposal would move the fleet average for small cars and light trucks from 44 to 58 miles per gallon by 2032. NCGA President Tom Haag says the proposal sets an unattainable goal and concerning precedent. “Auto manufacturers will be forced to overlook viable solutions in high-octane biofuels like corn ethanol to meet these standards,” Haag says. “This would minimize the role biofuels play in reducing greenhouse gas emissions and saving consumers money.” *********************************************************************************** Missouri Farmland Sale Sets New Record A Missouri farmland auction broke the previous record set in Iowa as 115 acres of land sold for a record amount. The Missouri farmland sale smashed the previous record of $30,000 an acre set in Iowa. The bill of sale from Dyer and Fenner Auctioneers said the record sale happened last week in Saline County, Missouri. Two farmers got into a bidding war, and, in only 15 minutes, the 115 acres set the new record at $34,800 per acre. The buyer wasn’t an investor. The winning bid came from a farmer named Jeff Baxter from neighboring Carroll County, Missouri. Area farmers say the competing bidder was a farmer whose home farm touches the land that was up for sale. Farm Journal’s AgWeb says the bidding started at $15,000 an acre for the piece of ground that’s been in the same family for four generations, and the bids climbed very fast.
| Rural Advocate News | Thursday September 28, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, an update of second-quarter U.S. GDP and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is at 9:30 a.m. USDA's Hogs and Pigs report for September 1 is due out at 2 p.m. Weather An upper-level trough that has been meandering through the Midwest all week continues across eastern regions with areas of showers on Thursday. A new front has moved into the Northern Plains and will be the focus for areas of showers and thunderstorms going into next week. Above-normal temperatures continue to build where showers and clouds do not occur.
| Rural Advocate News | Wednesday September 27, 2023 |
USDA Expands Access to School Breakfast and Lunch The Department of Agriculture Tuesday announced it is giving an estimated 3,000 more school districts in high-need areas the option to serve breakfast and lunch to all students at no cost. The expansion is possible through the Community Eligibility provision, commonly known as CEP. Agriculture Secretary Tom Vilsack says the effort "Will decrease childhood hunger, improve child health and student readiness, and put our nation on the path to better nutrition and wellness." CEP is a simplified meal service option that allows schools to provide meals at no cost to all students without requiring families to apply for free and reduced-price meals. School districts receive federal funding based on a formula using existing data, and local or state funds must fill any gap between program costs and federal support. Previously, at least 40 percent of students had to live in households participating in federal assistance programs for a school or school district to be eligible for CEP. This final rule lowers that threshold from 40 percent to 25 percent. *********************************************************************************** Report: Organic Strawberries Bring Higher Prices New data from USDA's Economic Research Service shows organic strawberries offer growers higher prices than conventional strawberries. Fresh strawberry prices tend to exhibit strong seasonal trends partly because of their relatively short shelf life. In the United States, grower prices for fresh organic strawberries move in tandem with conventional strawberry prices throughout the year while also typically running 40 to 50 percent higher than conventional prices—this difference is known as a price premium. In late fall and throughout winter, supply wanes even though demand remains robust. During this period, grower price premiums for organic strawberries rise above typical levels. From 2018–2022, the highest average price premium was in January, when organic strawberry prices were 74 to 88 percent higher than conventional strawberries. Price premiums in July averaged 18 to 24 percent. Since 2008, domestic organic strawberry acreage has tripled in California, which provides about 75 percent of U.S. organic strawberry production. *********************************************************************************** Lawmakers Seek Action on Wildland Firefighter Pay Reform A group of Senators called on Senate Majority Leader Chuck Schumer to consider wildland firefighter pay reforms. Led by Colorado Democrat Michael Bennet, the lawmakers seek advancement of permanent, comprehensive pay reform for the country's wildland firefighters as temporary pay increases are set to end. Short-term pay increases for over 22,000 federal firefighters will run out this week unless Congress takes action. In a letter, the senators note the increasing threat posed by wildfires in the U.S. and issues that have contributed to firefighter recruitment and retention challenges in recent years – including low pay, unaffordable housing, and strain on their mental health. The lawmakers say, “Firefighters deserve fair pay, support for their mental and physical health, and time to recover from their dangerous work.” They conclude by urging Schumer to move forward on permanent, comprehensive pay reform in line with the President’s Budget Request for Fiscal Year 2024 and the Wildland Firefighter Paycheck Protection Act. *********************************************************************************** USDA Report Details Cold Storage Food Supply USDA’s September Cold Storage Report shows lower dairy and meat supplies and seasonally higher frozen fruit and vegetables. The report released this week shows total natural cheese stocks in refrigerated warehouses on August 31, 2023, were down slightly from the previous month but up one percent from August 31, 2022. Butter stocks were down 12 percent from last month but up four percent from a year ago. Total frozen poultry supplies were down slightly from the previous month, but up one percent from a year ago, and total pounds of turkey in freezers were up two percent from last month. Frozen fruit stocks were up six percent from last month but down two percent from a year ago, while frozen vegetable stocks were up 18 percent from last month and five percent from a year ago. Finally, red meat supplies in freezers were up one percent from the previous month but down 15 percent from last year. *********************************************************************************** USTR Visits North Carolina Turkey Farm U.S. Trade Representative Kathrine Tai visited a North Carolina Turkey Farm Tuesday, celebrating recent market access wins for U.S. agriculture in India. Tai joined North Carolina Governor Roy Cooper for a tour of North Carolina State University’s Talley Turkey Education Unit, and participated in a roundtable event with turkey producers. Earlier this month, the U.S. and India reduced tariffs on frozen turkey, frozen duck, fresh blueberries and cranberries, frozen blueberries and cranberries, dried blueberries and cranberries, and processed blueberries and cranberries. The effort will give North Carolina farmers and agriculture producers greater opportunity to reach India’s large, untapped market for turkey exports. North Carolina is one of the United States’ largest exporters of turkey, accounting for about ten percent of U.S. turkey exports to the world each year. From 2017 through 2022, North Carolina averaged $50 million in annual exports of turkey products to the world. From 2017 through 2022, the U.S. exported over $3.1 billion of turkey to the world. *********************************************************************************** NOAA Providing Funding for Tribal Lands Drought Resiliency The National Oceanic and Atmospheric Administration this week announced funding to support drought resilience on tribal lands. NOAA is providing the funding to support projects that will help tribal nations address current and future drought risk. Commerce Secretary Gina Raimondo says, “Enhancing drought resilience with tribal partners in the West is a crucial step in building a Climate-Ready Nation.” Proposals may request funding of up to $700,000 total to be disseminated in the first year and expended over three years in the form of cooperative agreements. A total of 3-5 projects may be funded depending on the project budget requested. Applications should be developed by or in full partnership with tribal nations to fund the implementation of activities that address current and future drought risk in the context of a changing climate on tribal lands across the Western U.S. The NOAA Climate Program Office’s National Integrated Drought Information System anticipates a funding allocation of approximately $2 million, pending the availability of funds in Fiscal Year 2024.
| Rural Advocate News | Wednesday September 27, 2023 |
Wednesday Watch List Markets A report of U.S. durable goods orders is set for 7:30 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. CDT. Traders continue to monitor the latest weather forecasts and any news from the Black Sea region. Weather An upper-level low pressure system continues to meander slowly through the Eastern Corn Belt Wednesday, with areas of scattered showers and thunderstorms. Some pockets of heavy rain have developed in the rainfall over the last few days, which continues Wednesday as well.
| Rural Advocate News | Tuesday September 26, 2023 |
Bill Introduced to Protect Farmland Used for Renewable Energy Senators Tammy Baldwin and Chuck Grassley Monday introduced the Protecting Future Farmland Act. The new legislation supports farmers’ land stewardship efforts as many choose to deploy solar energy on their land. The legislation will ensure that federal investment in rural energy projects prioritizes both land stewardship and responsible deployment of renewable energy to protect America’s farmlands for future cultivation. Baldwin, a Wisconsin Democrat, says, “we need to support our farmers’ land stewardship efforts and help them protect the farmland that is critical to the future of our rural economies and national food security.” Grassley, an Iowa Republican, adds, “We must be certain that embracing solar doesn’t damage our most valuable commodity: our rich Iowa soil.” Agricultural landowners are increasingly interested in using their land for solar energy production. About 83 percent of new solar projects are installed on farmland and ranchland, with almost 50 percent placed on the most productive, versatile, and resilient land. *********************************************************************************** Legislation to Boost Oversight of Foreign Ag Purchases Advances The U.S. House Committee on Financial Services Last week advanced a bill supported by the National Cattlemen’s Beef Association that strengthens oversight of foreign agricultural purchases. Introduced by Representative Frank Lucas, an Oklahoma Republican, the Agricultural Security Risk Review Act would add the Secretary of Agriculture as a member of the Committee on Foreign Investment in the United States. The committee reviews the national security impact of foreign investments in the United States. NCBA’s Kent Bacus says the effort “Would provide a critical voice for American farmers and ranchers, and ensure that the federal government does not overlook agriculture's role in national security." The Secretary of the Treasury chairs the committee with members from the Department of Justice, Department of Homeland Security, Department of Commerce, Department of Defense, Department of State, Department of Energy, Office of the U.S. Trade Representative and Office of Science and Technology Policy. The legislation passed in committee and now goes to the full House of Representatives for consideration. *********************************************************************************** Cattle Group Applauds Hawley’s Anti-Monopoly Bill Senator Josh Hawley last week introduced the Strengthening Antitrust Enforcement for Meatpacking Act. The Missouri Republican’s bill would empower antitrust enforcers to break up giant meatpacking and poultry monopolies. R-CALF USA CEO Bill Bullard said his group “applauds Senator Hawley’s novel approach to addressing the untenable market concentrations faced by America’s cattle and sheep producers.” The bill would establish two thresholds for determining the market concentration in the meatpacking industry. Using the Herfindahl-Hirschman Index, or HHI, which is a measure of market concentration presently employed by the Department of Justice and the Federal Trade Commission, the bill would prohibit a merger or acquisition by a meatpacker if the HHI would exceed 1,800, or if a proposed merger or acquisition would increase the meatpacker’s current HHI Index by 100. The current guidelines consider an HHI below 1,500 to be unconcentrated, an HHI between 1,500 and 2,500 to be moderately concentrated, and an HHI above 2,500 to be a highly concentrated market. The Hawley bill would prohibit mergers currently considered moderately concentrated. *********************************************************************************** USDA Agribusiness Trade Mission Delegation Arrives in Chile A U.S. agribusiness delegation arrived in Santiago, Chile, Monday, led by USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor. The delegation includes representatives from the U.S. food and agriculture sectors and state departments of agriculture. Taylor says, “Customers in Chile are especially interested in U.S. consumer-oriented products, such as dairy, beef, poultry, pork, condiments and distilled spirits, providing U.S. exporters with many new and exciting opportunities.” While in Santiago, the members of the delegation are looking to establish business relationships and explore opportunities for U.S. agricultural exports to the region. Buyers from Chile, as well as from neighboring Ecuador and Peru, have been invited to participate and meet with U.S. exporters. In addition, this trade mission will allow participants to learn about production and marketing practices throughout South America. Chile is among the top three markets in South America for U.S. agricultural and related products, and the second-largest market in South America for consumer-oriented agricultural products. *********************************************************************************** K-State Launches Next-Gen Institute for Digital Agriculture Kansas State University is setting the stage as a national leader in digital agriculture with the launch of the interdisciplinary Institute for Digital Agriculture and Advanced Analytics. The institute is a people-centered interdisciplinary collective transforming learning, research and outreach around digital technologies and advanced analytical methods to enhance agriculture. Work done at the institute will include developing and integrating analytical methods and digital technologies -- like sensors, automation and robots -- that enhance food production and inform decision making for sustainable and resilient systems. K-State President Richard Linton says, “Kansas State University is working across disciplines to solve global agricultural problems and build the economic prosperity of Kansas and one of our state's key industries." The culmination of this collaborative effort will ensure that K-State is positioned as a leader in digital agriculture with an effective foundation to develop programs that sustain the long-term competitiveness of agriculture in Kansas. *********************************************************************************** Weekly Diesel and Gas Prices Decline For the first time in two weeks, the nation's average price of gasoline declined, falling 3.1 cents from a week ago to $3.80 per. The national average is up 1.3 cents from a month ago and 13.6 cents per gallon higher than a year ago. The national average diesel price decreased 1.4 cents last week and stands at $4.53 per gallon, 38.0 cents lower than one year ago. GasBuddy's Patrick De Haan says, "It's been a mostly quiet week for the national average price of gasoline," but adds, "New and continued refinery issues in some regions have had an oversized effect on gas prices in some states, especially in Southern California, Arizona, and Nevada." With some worry over the Fed's statements last week hinting that more interest rate hikes could be coming, oil prices saw some profit-taking last week, falling after Jerome Powell's latest statements. Meanwhile, U.S. retail gasoline demand saw an increase of 2.4 percent last week, bouncing back after several poor readings.
| Rural Advocate News | Tuesday September 26, 2023 |
Tuesday Watch List Markets A report on U.S. new home sales will be out at 7:30 a.m. CDT Tuesday, followed by a report on U.S. consumer confidence at 9 a.m. Traders will continue to keep close watch on the latest weather forecasts and scour contacts for harvest anecdotes. Weather An upper-level cutoff low continues to meander slowly through the Midwest Tuesday, producing scattered showers. Outside of some showers near the Gulf Coast and in the Mid-Atlantic, it should be dry east of the Rockies. A large trough continues to bring rainfall into the Pacific Northwest, which will slowly progress deeper into the country later in the week.
| Rural Advocate News | Monday September 25, 2023 |
Farmers Take EATS Act Opposition to Capitol Hill American farmers and ranchers were in Washington, D.C., September 17-22, to state their opposition to the EATS Act. The Ending Agriculture Trade Suppression Act was introduced by Representative Ashley Hinson (R-IA) and Senator Roger Marshall (R-KS). Groups like the Organization for Competitive Markets, Competitive Markets Action, and several others said the act would nullify more than a thousand state and local agriculture laws. Those laws are in place to protect communities from a number of issues like invasive pests and livestock diseases. The absence of local regulations would create an environment in which foreign conglomerates could rapidly expand across all 50 states. “If EATS is included in the upcoming farm bill, it will mark the end of American family farming as we know it,” says Deborah Mills, a director with the Organization for Competitive Markets. The organizations also advocated for the inclusion of the Opportunities for Fairness in Farming Act. *********************************************************************************** USDA Grants to Help Solve Workforce Challenges Employers can begin applying for a pilot program designed to improve the resiliency of the food and agricultural supply chain by addressing workforce challenges faced by farmers and ranchers. The USDA and other federal agencies are announcing up to $65 million in grants available for the Farm Labor Stabilization and Protection Pilot Program. The program will help address workforce needs in agriculture, promote a safe and healthy working environment for farmworkers, and aims to support expanding lawful migration pathways for workers through expanding the H-2A Visa Program. “Our country is facing growing agriculture workforce challenges that jeopardize our farmers’ ability to be competitive, threaten the resiliency, abundance, and safety of our food system, and have repercussions for the overall economy,” says Ag Secretary Tom Vilsack. “The program will benefit producers and farmworkers.” Program applications must be received by November 28. More information about the application process is available at ams.usda.gov. *********************************************************************************** NCGA Pushes Back Against EPA Board The National Corn Growers Association pushed back against commentary made by a science advisory board with the Environmental Protection Agency. The Board questioned the effectiveness of ethanol in lowering greenhouse gas emissions. “There is no shortage of studies on the environmental benefits of corn ethanol,” NCGA CEO Neil Caskey told the advisory board members. “The Department of Energy’s Argonne National Laboratory has conducted extensive research on the matter and concluded that corn ethanol has reduced greenhouse gas emissions in the U.S. by 544 million metric tons from 2005-2019.” He also says the feedstock’s carbon intensity is 44 percent lower than that of petroleum gasoline. The testimony comes after the board provided commentary to the EPA administrator raising doubts about the effectiveness of ethanol. Caskey also responded to assertions that ethanol production impacts land use, noting that data shows as corn production has risen, land used to grow corn has not. *********************************************************************************** AFT Announces Farmers’ Market Celebration Contest Winners American Farmland Trust and the Farmers Market Coalition announced the winners of the 15th annual America’s Farmers Market Celebration. It’s an annual event honoring the role of farmers’ markets. More than 2,000 markets nationwide participated in the 2023 celebration with over ten million supporters engaged in voting. “America’s farmers markets serve communities across the nation, providing access to fresh, healthy food and building farmers’ opportunity,” says David Thayer, AFT’s director of marketing and digital outreach. “It’s a pleasure hosting the Celebration and witnessing the incredible national support for local food.” The first-place winner was the farmers’ market in North Tonawanda, New York, which was awarded $5,000. Since 2008, the celebration has highlighted the important role farmers’ markets play in American communities and the larger U.S. food system. Food markets are on the leading edge of educating consumers about where food comes from and reinforcing AFT’s message of No Farms, No Food. *********************************************************************************** Increasing Competition in Global Pork Trade A recent Rabobank report says competition between major exporters has intensified in the global pork trade, meaning the competitive landscape will continue shifting in the years ahead. Low-cost producers like Brazil and the U.S. will likely have an advantage, while Europe’s position is expected to weaken following increasing market and regulatory requirements concerning animal welfare and sustainability. Countries adopting effective disease mitigation strategies may secure a competitive edge as disease pressure looms over the pig sector. Meanwhile, global pork consumption is poised for growth until 2030, creating ongoing opportunities for global pork trade. Rabobank says disease pressure will continue creating challenges in the pork industry, though the impact will be contingent on trade policies and the success of mitigation efforts. Pork trade will persist despite China’s pork production rebounding to pre-ASF levels in 2022, achieving 95 percent self-sufficiency. The report also says despite disruptions, global pork consumption will grow through 2030. *********************************************************************************** World Grain Conference Brings Buyers and Sellers Together The U.S. Agricultural Cooperators Conference is a cornerstone buyers conference in Southeast Asia. The event is hosted by the U.S. Grains Council, the U.S. Soybean Export Council, and the U.S. Wheat Associates and has actively served the region for 20 years. This year’s event addressed the pressing global challenges of food security, sustainability, and innovation. “We continue to strive to keep this conference fresh and relevant,” says Caleb Wurth, USGC Southeast Asia and Oceania regional director. “We decided to bring an even more diverse group of customers to our member exporters than ever before, and broader Asian participation was well received by our customers.” ACC is an opportunity for the Council’s U.S. exporter members to market their products and engage with buyers from around the globe in one spot. Along with buyer delegations from the Southeast Asia region, the Council invited constituencies from China, South Korea, South Asia, and Taiwan.
| Rural Advocate News | Monday September 25, 2023 |
Top 5 Things to Watch - Seed Selection, DC Dramas, Receding Rivers Lead News Coverage OMAHA (DTN) -- Fall is officially here, and with that we turn attention to ending fiscal years, grain reports and harvest news. Here are the Top 5 things the DTN Newsroom is tracking for the week of Sept. 24. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Grain Stocks Friday: Grain markets will focus on Friday when the USDA Grain Stocks and Small Grains Summary reports hit at 11 a.m. CDT. We'll have our normal immediate coverage, followed by commentary updates throughout the hour. DTN Lead Analyst Todd Hultman will head up a live webinar on the reports at 12:30 p.m. 2. D.C. budget chaos: We continue to watch the fallout of the Congressional failure to put together a budget or a continuing resolution to keep government doors open. In addition to our news team's coverage, DTN subscribers can keep up with the latest news in their streaming AP News section and in our Ag News segments.. 3. Harvest break and rivers drop: The weekend's waves of rainfall should diminish early in the week as the current system slowly fades away to the east or south. Rain is largely too late to benefit summer crops and will delay early wheat harvest plans in some areas. Midwest rains will give some farmers a brief break for some in-season combine and harvest equipment maintenance and to finish seed orders. Dry soils will quickly suck up that moisture, though, meaning the rains won't hold up harvest for long. The past week's Drought Monitor Map update showed increasing dry conditions across most of the country, including wetter areas of East and South. We're watching how lack of inflow will affect the Ohio, Missouri and Mississippi river systems as fall transportation picks up. 4. Speaking of seed buying: We'll continue to post stories from the September Progressive Farmer issue featuring the latest on seeds and related technology. Watch for those in our Top Stories segments and blogs. 5.. Reports fill this week ... and then?: Government economic reports this week should flow as normal. Beyond Sept. 30, the chances are murkier as a government shutdown would cut the cord on such updates. Monday's market-influencing reports include USDA's weekly grain export inspections at 10 a.m. CDT, followed by USDA's monthly cold storage report at 2 p.m. and Crop Progress at 3 p.m. We'll watch for harvest progress of the past week and how much rains will slow that down. Tuesday sees U.S. new home sales report at 7:30 a.m. and a report on U.S. consumer confidence at 9 a.m. On Wednesday, we'll watch the U.S. durable goods orders, which hits at 7:30 a.m., and the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. CDT. Thursday morning is a busy one, with USDA's weekly export sales report, the weekly U.S. jobless claims, an update of second-quarter U.S. GDP and an update of the U.S. Drought Monitor all hitting at 7:30 a.m. The U.S. Energy Department's weekly report of natural gas storage is at 9:30 a.m. USDA's Hogs and Pigs report for Sept. 1 is due out at 2 p.m. Then, Friday is the reveal of the Federal Reserve's favorite inflation indicator, the PCE index, at 7:30 a.m. The U.S. personal income and consumer spending reports hit at the same time, followed by USDA's Sept. 1 Grain Stocks and Small Grains Summary, which as noted above, are out 11 a.m. CDT.
| Rural Advocate News | Monday September 25, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking rainfall amounts and the latest weather forecasts. News from the Black Sea may also play a part as Ukraine appears to be getting bolder with its attacks. USDA's weekly grain export inspections will be out at 10 a.m. CDT, followed by USDA's monthly cold storage report at 2 p.m. and Crop Progress at 3 p.m. Weather A cutoff low from the weekend is stuck in the Midwest and will be producing some areas of showers Monday. Most places will see little or no rainfall, but a couple of lucky pockets could see some meaningful rain in and around Wisconsin.
| Rural Advocate News | Friday September 22, 2023 |
NPPC Past President Testifies on Reforming GSP National Pork Producers Council Past President Randy Spronk testified at a House subcommittee hearing on reforming the generalized system of preferences to safeguard American supply chains and combat China. The U.S. Generalized System of Preferences (GSP) provided duty-free treatment of goods exported to America from developing countries before expiring in 2020. “American pork producers support the renewal of GSP, a valuable program that will give U.S. trade negotiators another tool to persuade countries to eliminate trade restrictions on U.S. products,” Spronk said. In the past, the U.S. pork industry has utilized GSP to gain market access to countries like Argentina and India. “A renewal of GSP should include stronger enforcement mechanisms that provide U.S. trade negotiators with the tools to ensure countries are meeting their obligations,” Spronk adds. America’s pork industry shipped $7.68 billion worth of pork to more than 100 foreign countries in 2022, supporting approximately 155,000 U.S. jobs. *********************************************************************************** USDA Payments to Help Organic Dairy Producers The USDA is announcing a second round of payments for dairy producers through the Organic Dairy Marketing Assistance Program. The agency is providing an additional $5 million to help dairy producers mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. The Farm Service Agency has already paid out $15 million in the first round of payments to eligible producers. “The program is critical to keeping small, organic dairies sustainable as they continue to weather a combination of challenges outside their control,” says FSA Administrator Zach Ducheneaux. “In total, the Farm Service Agency is providing $20 million to give organic dairy producers additional economic support to stay in operation until markets return to more favorable conditions.” FSA accepted applications for assistance from May 24 to August 11. Eligible operations produce milk from cows, goats, and sheep. *********************************************************************************** NACD Applauds Establishment of the American Climate Corps The National Association of Conservation Districts applauds the establishment of the American Climate Corps. Developing the next generation of conservationists has been a top priority and a major outcome of NACD’s Climate Action Task Force. The government-wide American Climate Corps will provide for a robust and diverse recruitment pipeline that’s critical for the future success of conservation and climate programs. With 3,000 conservation districts across the U.S. and its territories, NACD can also provide valuable learning opportunities for participants. Conservation districts work with landowners and operators across rural and urban communities. “Opportunities to get ‘boots on the ground’ with conservation districts provides the next generation meaningful development opportunities and leadership roles within local communities,” says Kim LaFleur, NACD President. “These emerging leaders can benefit greatly from the decades of expertise that exist within conservation districts, empowering them to tackle challenges and deploy numerous innovative solutions through the locally-led delivery system.” *********************************************************************************** ASI Investigates Trade Case Against Lamb Imports The American Sheep Industry Association updated the status of a legal process initiated several months ago toward possibly filing a U.S. trade law violation by lamb importers. ASI Executive Director Peter Orwick offered an update as the association awaits the results of a preliminary investigation. “We are specifically looking for the estimate of trade case strength, which depends on two parts,” Orwick says. “One is injury to the industry – the entire industry, the sheep producers, the lamb feeders, and the lamb companies. The second piece is the estimate of any violation, including dumping and subsidy margins, so the board can project an impact on American lamb returns should a case filing result in tariffs on imported lamb meat.” Pursuing a trade case against lamb import countries would cost a minimum of $1.3 million in legal expenses alone and require almost a year to see the case through to the end. *********************************************************************************** Farmers Union Supports Right to Repair Bill The Agricultural Right to Repair Act was introduced in both the House and Senate, and the legislation is strongly supported by the National Farmers Union. NFU President Rob Larew says the Right to Repair Act is an important step in the fight to ensure farmers across the country have fair and affordable access to the parts, tools, and information they need to fix farm equipment. “I want to thank the officials who introduced the bill to guarantee farmers the Right to Repair their equipment,” he says. “NFU stands ready to help push this bill forward.” Right to Repair is a pillar of NFU’s Fairness for Farmers campaign to address the monopoly crisis in agriculture. Just three manufacturers control the majority of farm equipment production, sales, and repairs, and use software locks to prevent farmers and independent mechanics from completing certain repairs. Right to Repair could save farmers $4.2 billion every year. *********************************************************************************** Wheat Groups Appreciate the American Farmers Feed the World Act U.S. Wheat Associates and the National Association of Wheat Growers thanked several lawmakers for introducing the American Farmers Feed the World Act of 2023 in the Senate. The bipartisan legislation would restore the original intent of the Food for Peace program without spending additional farm bill resources. It also safeguards the interests of hard-working American farmers in providing food to those in need around the world. The wheat groups have joined the broader agriculture industry in backing the legislation. “The American Feed the World Act of 2023 offers an important rebalancing to ensure that Food for Peace remains focused on effectively delivering as much American-grown food to as many people in need as possible,” says USW Director of Trade Policy Peter Laudeman. “As Congress considers the new farm bill, this legislation provides an opportunity to revitalize the role of American agriculture in addressing global hunger,” says NAWG President Brent Cheyne.
| Rural Advocate News | Friday September 22, 2023 |
Friday Watch List Markets USDA's cattle on-feed report for September 1 will be out at 2 p.m. CDT Friday. Dow Jones' survey expects the on-feed total to be down 2.2% from a year ago and placements to be down 5.2% from a year ago. Traders will keep an eye on rainfall totals over the weekend and any changes in the forecasts. Weather A storm system in the Pacific Northwest is sending plenty of energy into the Plains to produce areas of scattered showers and thunderstorms in the middle of the country early Friday. Shower coverage should expand with time today, with the more consistent and heavier rains across the Northern Plains. Some severe weather will be possible, as will localized flooding.
| Rural Advocate News | Thursday September 21, 2023 |
New Crop Insurance for Tropical Storms Benefits Producers Impacted by Idalia USDA's recent hurricane crop insurance policy expansion to cover tropical storms this year has already provided farmers $85.4 million to help them recover from Hurricane Idalia. USDA's Risk Management Agency rolled out the new Tropical Storm Option for its Hurricane Insurance Protection-Wind Index Endorsement earlier this year after working with farmers to improve coverage. Additionally, producers have received $84.8 million in indemnities for hurricane-related losses for a total of over $170 million in crop insurance payments that will directly help farmers and rural communities recover from Hurricane Idalia. This coverage was unavailable this time last year. RMA Administrator Marcia Bunger says, "I commend farmers and their organizations for reaching out to RMA to discuss new coverage, and our staff for promptly working on creative solutions to make this coverage a reality." Farmers do not need to file a claim to receive payment. If a county is triggered, then the Approved Insurance Provider will issue a payment in the coming weeks. *********************************************************************************** Stratovation to Launch Collaborative Specialty Crop Biologicals Study Stratovation Group is engineering a new study on how specialty-crop growers perceive agricultural biologicals for vegetable, leafy greens and fruit and nut crops. The new study, "Biologicals: Specialty Crop Growers' Perceptions, Values and Potential," will be conducted in collaboration with Western Growers, the Agricultural Retailers Association, DC Legislative and Regulatory Services, and The Fertilizer Institute. TFI President and CEO Corey Rosenbusch says, "This effort provides a unique opportunity to gather insights directly from growers, enabling our members to support their input needs effectively and drive sustainable innovation deeper into agriculture." The specialty crop effort will be a comprehensive market research effort focused on understanding farmer/grower opinions on the current use, issues and potential for biologicals, but specifically for vegetable, leafy greens and fruit and nut production at the farm level. The 2023 study will set benchmarks around the use of biologicals by specialty crop growers and provide a roadmap to companies seeking to grow and develop the market category. *********************************************************************************** Russian Wheat Exports Remain Biggest Risk to U.S. Elevators A modest rebound in U.S. wheat production and supplies is improving the outlook for profitability among grain elevators that store wheat. Futures market carries have improved for all three major classes of wheat, and the buy basis is widening following a bigger harvest. The larger harvest follows two years of poor production and a historic run of inverted futures markets that sapped profitability for storing wheat. However, according to CoBank, the major risk to elevators in the year ahead is a sharp rally in wheat prices. Wheat stocks among major exporters are historically tight, and any disruption to the flow of Russian exports through the Black Sea could trigger a sharp price run-up. CoBank economist Tanne Ehmke says, “The flood of cheap Russian wheat into the global market may have created a false sense of security in the world wheat market.” Russia is currently harvesting a near-record wheat crop with substantial carryover inventories from last year's record-sized harvest. *********************************************************************************** Oilseed Groups Urge Use of GREET Model for SAF Tax Incentives Oilseed groups delivered a letter this week to the Biden administration seeking support for investments made by U.S. companies and farmers who are ramping up production of sustainable aviation fuel. Using the GREET model will support investments by farmers, oilseed processors and domestic producers to meet the sustainable aviation fuel challenge, according to the groups. Clean Fuels Alliance America, the American Soybean Association, the National Oilseed Processors Association, and the U.S. Canola Association came together to make the request. The letter states, “Without this, our combined members and others in the industry may not be able to follow through on investments in sustainable aviation fuel production.” GREET is the Argonne National Laboratory’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation model. The letter asks the administration to consider the billions of dollars that members of the associations have made to build new or optimize existing production facilities and expand availability of sustainable, homegrown, low-carbon feedstocks like soybean oil and canola. *********************************************************************************** USDA Expands Efforts to Prevent and Reduce Food Waste The Department of Agriculture Wednesday announced an additional $25 million investment to expand efforts to prevent and reduce food loss and waste. The investment, funded under the American Rescue Plan Act, is part of a joint agency initiative between USDA’s National Institute of Food and Agriculture and USDA’s Office of the Chief Economist. More than one-third of all available food goes uneaten through loss or waste. When food is tossed aside, so too are opportunities for improved food security, economic growth and environmental prosperity. The funding will support the Community Food Projects, Competitive Grants Program to reduce food loss and waste, get surplus wholesome food to individuals, and develop linkages between food producers, providers and food recovery organizations. Since 2017, NIFA has committed $123.5 million across 527 projects relating to food loss and waste. This latest investment will expand several of NIFA’s core programs by $25 million, and has awarded $4.3 million in fiscal year 2023. *********************************************************************************** Majority of U.S. Apples Used in Juices Apples are a fall staple, showing up in lunch boxes, pies, cobblers, crisps, and cider. However, new data from USDA’s Economic Research Service shows a majority of apples are used in juices. In 2021, 45.9 pounds of apples per person were available for domestic consumption, according to USDA’s Food Availability data product. Fifty-two percent of the available apples for U.S. domestic use, 23.7 pounds per person, was in the form of juice or cider, or about two gallons per person. Fresh apples accounted for 34 percent, 15.8 pounds per person. Canned, frozen, dried, and other forms made up the remaining 14 percent of apple availability in 2021. Over the last ten years, per-person apple availability reached a high of 49.2 pounds per person in 2016. Much of the decrease since 2016 was because of declining availability of fresh apples. In 2016, fresh apple availability was 19.3 pounds per person.
| Rural Advocate News | Thursday September 21, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m., the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. U.S. existing home sales and leading indicators are set for 8 a.m., followed by the U.S. Energy Department's weekly report of natural gas storage at 9:30 a.m. Weather A system entering the Plains will produce areas of scattered showers throughout the day, some of which could be severe. Another disturbance is bringing showers to Illinois as well. Rains will be heavy enough to stop harvest for the next few days but will help to reduce the impact of the ongoing drought
| Rural Advocate News | Wednesday September 20, 2023 |
AFBF: Dairy Make Allowances Reform a Must American Farm Bureau Federation economist Danny Munch presented testimony Tuesday at the ongoing Federal Milk Marketing Order Pricing Formula hearing. This is the third time an AFBF representative has testified at the hearing. The testimony focuses on adjusting make allowances, or the estimated costs that dairy processors incur to convert milk to consumable dairy products, like cheese and butter. This price directly impacts the price paid to farmers for their milk. AFBF is advocating for make allowances to be adjusted based on a mandatory, audited USDA survey, which USDA says it does not have the authority to conduct. AFBF is pursuing legislation that would direct USDA to conduct such a survey. AFBF opposes increasing make allowances based on potentially biased voluntary survey data that could reduce farmers’ prices unfairly. AFBF submitted nine proposals for consideration during the hearing, and four were accepted by USDA. Additionally, AFBF largely supports four of the five proposals submitted by the National Milk Producers Federation. Full AFBF testimony is available at fb.org. *********************************************************************************** USDA Announces 100th Annual Agricultural Outlook Forum USDA's 100th Annual Agricultural Outlook Forum, "Cultivating the Future," will take place on February 15-16, 2024, at the Crystal City Gateway Marriott in Arlington, Virginia. The forum is USDA's longest-running and largest public event and aims to help stakeholders understand and plan for the opportunities and challenges facing the agricultural sector at home and abroad. Each year, it attracts more than 1,800 people in person, and nearly 5,000 virtual attendees from the U.S. and worldwide. The program will include remarks from the Secretary of Agriculture and other top Department officials, along with 30 breakout sessions featuring more than 120 leading experts on a wide range of timely food and agriculture-related topics. Whether you're a farmer, policymaker, industry leader, market analyst, or simply interested in the future of agriculture, the Agricultural Outlook Forum is the perfect place to connect, learn, and engage. Registration will open at the end of October. *********************************************************************************** AVMA Reignites Efforts to Address Rural Veterinary Shortages Lawmakers have reintroduced the Association, the Rural Veterinary Workforce Act, formerly known as the Veterinary Medicine Loan Repayment Program Enhancement Act. Introduced in both the House and Senate, the legislation would expand the reach of the Medicine Loan Repayment Program. The program helps increase access to food animal veterinary services in rural areas by assisting with the significant obstacle of educational debt. The legislation would end the federal taxation on awards, enabling more veterinarians to participate in a program that offers up to $75,000 over three years for student loan repayment in exchange for service in USDA-designated shortage areas. In 2023, the USDA declared 237 rural veterinary shortage areas in 47 states, more than any year. American Veterinary Medical Association President Dr. Rena Carlson says, "we look forward to working with the congressional champions to enact this bill and help rural communities across the country access the many essential services veterinarians provide.” *********************************************************************************** McKalip to Travel to Oakland, California Port The U.S. Chief Agricultural Negotiator Doug McKalip will visit Oakland, California, on Thursday. McKalip will visit the Port of Oakland to tour its facilities and engage with stakeholders during his trip. McKalip will be joined by local International Longshore and Warehouse Union leadership and local members of the Pacific Maritime Association. Ensuring the success of America's farmers and producers has been a topline priority for the U.S. Trade Representative's Office under Ambassador Katherine Tai's leadership. The trip follows the recent labor agreement between West Coast port workers and the International Longshore and Warehouse Union and the Pacific Maritime Association. Most recently, USTR secured an agreement with India on September 8, 2023, to resolve the last World Trade Organization dispute and lower tariffs on certain U.S. agricultural products. This built upon the agreement finalized with India in June, which terminated six other WTO disputes and removed retaliatory tariffs on other U.S. agricultural products. *********************************************************************************** Lely Robotic Milkers Class Action Suit Settled Producers and their law firm reached a settlement agreement this month against a manufacturer of allegedly defective milking robots. On September 1, 2023, the Court granted final approval of the settlement for the Lely A4. The settlement allowed class members to replace their existing robot with Lely's newer A5 model or receive cash relief. Nearly all of the approximately 400 class members participated, and the relief selected is worth approximately $121 million. Based on the claims submitted and options chosen, the cash fund is approximately $51 million, and those opting for trade-ins will receive approximately $71 million in value for trading in their A4s for new A5s. In approving the settlement, the Court called it an "excellent result," noting that it provided "outstanding relief" and received "overwhelming, unprecedented" support from the class. The terms of the settlement were agreed upon after nearly three years of litigation. *********************************************************************************** USDA Study Underscores Importance of Food Safety Education Month USDA Tuesday released results from the final year of a five-year study that observed how consumers prepared meals. The study observed food safety behaviors, including participants' thermometer use for ground pork sausage, handwashing, and cleaning and sanitizing food preparation surfaces. The most recent data shows that 87 percent of participants self-reported they washed their hands before starting to cook in the test kitchen. However, only 44 percent of participants were observed doing so before meal preparation. In the study, 50 percent of participants used a food thermometer to check the doneness of the sausage patties. However, 50 percent of those participants did not check all the food. The study used a harmless tracer bacteria, which was injected into the pork sausage, to simulate the spread of foodborne illness-causing bacteria. Among the surfaces tested, the kitchen sink was most often contaminated, with 34 percent of participants contaminating the sink during meal preparation.
| Rural Advocate News | Wednesday September 20, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly report of energy inventories is at 9:30 a.m. CDT. Many expect the Fed to keep the federal funds rate unchanged at their 1 p.m. announcement, but a quarter-percent hike is possible. Traders will keep an eye on the latest weather forecasts with rain expected to start in the western Plains on Thursday. Weather A couple of disturbances in the middle of the country continue to produce showers on Wednesday, especially one moving through the Ozarks which may yield some areas of heavy rain. A front that has set up in the Northern Plains will also be active with periods of showers and thunderstorms as well. That is in advance of a system that will have a major influence on the middle of the country later this week and weekend.
| Rural Advocate News | Tuesday September 19, 2023 |
USDA Seeking Beginning Farmer and Ranchers Committee Members The Department of Agriculture Monday announced a call for nominations to the Advisory Committee on Beginning Farmers and Ranchers. First established in 1992, the committee advises the Agriculture Secretary to enhance USDA’s goals for new farming and ranching operations. Members of the public are invited to submit nominations for themselves or other qualified experts by October 10, 2023. Agriculture Secretary Tom Vilsack says, “USDA is committed to helping the beginning farmer, the young farmer, access and make use of USDA programs.” USDA is soliciting nominations from interested organizations and individuals from among ranching and farming producers, related state and tribal agricultural entities, academic institutions, commercial banking entities, trade associations, and related nonprofit enterprises. The Agriculture Secretary may appoint up to 20 members to the committee. An organization may nominate individuals from within or outside its membership. Interested candidates may also nominate themselves. Find the nomination requirements and information on the committee website. *********************************************************************************** USDA Data Shows Crop Improvement R&D Spending Expanding Total research and development spending on crop improvement by the seven largest seed companies increased from less than $2 billion in 1990 to more than $6.5 billion by 2021. USDA’s Economic Research Service reports the spending closely tracks with increases in company revenues from seed and agrichemical sales. Intellectual property rights protections for new seed innovations—especially genetically modified seeds—allow seed companies to set product prices with a temporary legal monopoly. The profits earned are a return for research and development investments and costs to commercialize the inventions. The profits also allowed seed companies to spend more on crop research and development, accelerate the rate of new variety introductions with higher productivity potential, and charge higher prices reflecting the value of improved seeds, according to USDA. Collectively, the seven companies have invested about ten percent of their agricultural revenues in research and development. The top companies include Bayer, Corteva, Syngenta, BASF, Limagrain, KWS and Rijk Zwaan (rike-svan). *********************************************************************************** USTR to Deliver Speech on WTO Reform Trade Representative Katherine Tai will deliver a speech on the World Trade Organization and participate in a fireside chat Friday at the Center for Strategic and International Studies in Washington, D.C. Tai will also participate in a fireside chat with the WTO Director-General. In her speech, Ambassador Tai will underscore the importance of reform at the World Trade Organization to make it a more effective, responsive, and inclusive forum for solving today's global challenges. She will also highlight areas of reform that are a priority to the United States, and how the United States is engaging with other WTO Members to advance these priorities. The Center for Strategic and International Studies is a bipartisan, nonprofit policy research organization dedicated to advancing practical ideas to address the world’s greatest challenges. The organization is self-described as one of the world’s preeminent public policy institutions on foreign policy and national security issues. ********************************************************************************** Cargill, Soil Health Institute Create Water Stewardship Partnership The Soil Health Institute and Cargill recently partnered to implement regenerative agriculture practices through water stewardship within agricultural supply chains. The three-year, $3 million partnership will equip farmers, conservation planners, and sustainability experts across North America with tools to enhance drought resilience, improve soil health, and encourage sustainable water use. Soil Health Institute President and CEO Wayne Honeycutt says, "We're expediting adoption of regenerative systems by offering stakeholders practical insights to assess improvements in water storage and availability resulting from changes in on-farm practices." Research has demonstrated that increases in available water-holding capacity associated with soil organic carbon gains from soil health practice implementation can lead to twice as much water storage in the topsoil compared to previous estimates. The partnership will enable farmers, businesses, researchers, governments, and other sustainability experts to assess their progress toward water stewardship objectives and build industry convergence around the value of soil health in enhancing drought resilience and sustainable water management. *********************************************************************************** Rail Safety Week Raising Awareness to Save Lives Operation Lifesaver this week is promoting Rail Safety Week. The annual week-long event concentrates public attention on the need for rail safety education and saves lives by educating and empowering the public to make safe decisions around tracks and trains. Operation Lifesaver’s national office and state Operation Lifesaver programs across the U.S. will connect with their communities through in-person and online events, sharing rail safety messages and urging the public to get involved. Every year, 2,100 North Americans are killed or seriously injured when they engage in unsafe behavior around tracks and trains. In the U.S. alone, a person or vehicle is hit by a train every 3 hours. Operation Lifesaver Executive Director Rachel Maleh (mall-lay) says, “Everyone can help make their communities safer. Know the facts, recognize the signs, make good decisions and join us.” The organization is partnering with Operation Lifesaver Canada and the Association of Mexican Railroads to promote the week across North America. *********************************************************************************** Refinery Outages Increase Fuel Prices For the second straight week, the nation's average price of gasoline increased, climbing 4.6 cents from a week ago to $3.83 per gallon. The national average is down one cent from a month ago but 19.9 cents per gallon higher than a year ago. The national average diesel price increased 9.9 cents last week and stands at $4.53 per gallon, 42.1 cents lower than one year ago. GasBuddy's Patrick De Haan says, "With the transition back to cheaper winter gasoline now upon us in nearly every state, we should see prices eventually cooling back off, but if refinery issues continue to develop or linger, especially now that we're entering maintenance season with less available capacity online, the expected decline could certainly be offset.” U.S. retail gasoline demand saw a decline of 1.5 percent last week, as demand continues to weaken seasonally while rising prices could also be playing a role.
| Rural Advocate News | Tuesday September 19, 2023 |
Tuesday Watch List Markets A report on U.S. housing starts is set for 7:30 a.m. CDT Tuesday. The Federal Reserve begins its two-day meeting, discussing whether to increase the federal funds rate target another quarter-percent or to leave it alone for now. Traders will digest Monday's harvest progress data from USDA, the latest weather forecasts and keep an eye on Black Sea events. Weather A couple of disturbances in the middle of the country will be responsible for areas of showers from Texas to areas around Lake Michigan on Tuesday. Most areas will see light rain, but pockets of heavier rain will be possible, especially farther south across Oklahoma and Texas, where there is a greater risk of severe weather, especially hail.
| Rural Advocate News | Monday September 18, 2023 |
Wheat Growers Complete Second Farm Bill Fly-In The National Association of Wheat Growers completed the second part of its 2023 summer Farm Bill Fly-Ins. The first round of visits to Capitol Hill took place in July. During the visit, wheat growers from across the country reinforced the association’s core priorities and underscored the need for Congress to work together to ensure farmers can continue providing safe and affordable food for everyone. Last week, growers from 14 states met with their delegations, staff from each Ag Committee, and Congressional leadership to continue educating lawmakers and advocating for an effective farm safety net. The group’s priorities include working to strengthen Title 1 and crop insurance to better protect farmers. They want support for financial and technical assistance through voluntary conservation cost-share programs for producers in all climates and regions. They’re also encouraging additional investment in agricultural trade promotions and U.S. commodities as part of the farm bill’s trade title. *********************************************************************************** Ethanol Industry Supports GREET Model for Scientific Emissions Accuracy American ethanol organizations like the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association sent a letter to Treasury Secretary Janet Yellen on sustainable aviation fuel. When it comes to global actions to decarbonize the aviation transportation sector using Sustainable Aviation Fuel, the industry wants to encourage the use of updated carbon-intensity scoring in the GREET model. They don’t want scoring used in the CORSIA model for corn-based ethanol SAF. The letter says, “We strongly support adopting the DOE’s GREET Model as the standard for carbon intensity scoring of conventional aviation fuels and SAF. The latest GREET model relies on the most current information and highest-resolution data regarding the energy use, carbon emissions, and potential land use impacts associated with the corn ethanol-based SAF process.” The letter also says GREET allows the Treasury to unlock the full potential of agriculture to meet the growing global aviation industry SAF demand. *********************************************************************************** House Bill Targets California’s Electric Vehicle Mandate The U.S. House of Representatives approved a bill prohibiting California’s attempt to eliminate all gas-powered vehicles. The bill passed the House 222-190. It would keep states from limiting the sale of gas-powered cars and revoke any federal approvals allowing states to do so issued since the beginning of 2022. The vote was along party lines, but eight Democrats did vote with Republicans in favor of the legislation. The legislation doesn’t specifically mention California in its language. States can implement tighter clean car rules stricter than those from the federal government under the Clean Air Act. But those states have to get permission from the Environmental Protection Agency first. The Hill says the EPA reinstated a waiver allowing a California rule aimed at limiting vehicle pollution to take effect. Since then, the state intends to completely phase out the new sales of gas-powered cars. The bill isn’t expected to become law. *********************************************************************************** U.S. HRW Exports Hit Record Low Levels U.S. Hard Red Winter Wheat exports are forecast down 10 million bushels this month to 155 million bushels, the lowest since records began in 1973-1974. HRW supplies have seen a long-term downturn in U.S. acreage as corn and soybeans gained acres in many locations. International wheat competition has also surged, resulting in exports of this class being less competitive on the global market. U.S. HRW supplies have recently been affected by significant drought in consecutive years, which has dented crop prospects and contributed to exports of this class being uncompetitive with other suppliers like Russia and the European Union. Historically, HRW was the leading class of American exports, but this year it’s forecast to be the third-largest class of U.S. exports, surpassed by both Hard Red Spring and White Wheat. Production of HRS and White is down year-over-year with lower yields, but drought hasn’t hit those classes as hard as HRW. *********************************************************************************** Iowa Announces Grant Opportunity for New Livestock Vaccines Iowa Secretary of Ag Mike Naig (NAYG) announced the new Livestock Protection Innovation Grant Program. The program will provide grant funding to assist Iowa-based companies in the development of safe and effective vaccines that may help protect livestock from foreign animal diseases. “Protecting Iowa’s nation-leading livestock industry from devastating foreign animal diseases is enormously important to the farm families and local communities that benefit from its 13-billion-dollar impact,” Naig says. “Vaccine development is one of the many steps we are taking to help safeguard our farm animals because it’s important to have tools available to effectively respond to disease and protect our food supply.” The Iowa Legislature, with support from Iowa Governor Kim Reynolds, appropriated $250,000 for livestock vaccine development within Iowa during the last legislative session. The Iowa Department of Agriculture and Land Stewardship is working in collaboration with many stakeholders and officials to swiftly respond to any threat. *********************************************************************************** Purdue Survey Shows Consumer Attitudes on Higher Pork Prices A new Purdue University survey indicates that consumers appear to be more willing to live with higher pork prices if they are the result of meeting animal welfare standards like California’s Prop 12. In the nationwide survey, consumers said they would scale back their purchases if pork prices went higher. But fewer of them would cut back on buying pork if Prop 12 was the reason for the increase. A small segment of survey respondents said they would buy even more pork in that case. “We saw responses that suggest animal welfare is more important to consumers than previously thought,” says Elijah Bryant, a research analyst at Purdue. “Even though the hypothetical price increase is the same size, fewer consumers would decrease their spending on pork knowing the price increase was caused by animal welfare regulations.” The Purdue survey results will get tested on January 1 when Prop 12 is fully implemented.
| Rural Advocate News | Monday September 18, 2023 |
Top 5 Things to Watch - Harvest Picks up, Will Washington Lie Down OMAHA (DTN)-- Here are the Top 5 things the DTN Newsroom is tracking for the week of September 17. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. Harvest reports roll in: You'll find continued harvest reports from the field in our View from the Cab feature as well as coming stories from select combine cabs. 2. Washington's failure to launch: DTN's Chris Clayton will be in D.C. next week covering potential Farm Bill conversations as well as watching for the potential shutdown of government operations at the end of the month. Watch for news stories as well as sharp commentary in his Ag Policy blog. 3. Cattle on Feed Friday: The latest USDA Cattle on Feed Report hits at 2 p.m. CDT Friday, with analysis by DTN's ShayLe Stewart soon after. 4. Harvest Weather Questions: Early harvest conditions continue to be mostly favorable, but more rain would be welcome for immature crops and winter wheat establishment. A system moves into the Plains in the middle of next week, bringing a chance of showers to at least the western half of the region later this week. Central and southern plains areas have the best chance for heavier rains. Rain chances increase for the northern Plains by the weekend, while the South stays dry. 5. Reports Fill the Week: USDA's weekly grain export inspections hit the wires at 10 a.m. CDT Monday, followed by USDA's Livestock, Poultry and Dairy Outlook at 2 p.m. and Crop Progress at 3 p.m. We'll have analysis of Crop Progress Report following the data release. Tuesday we'll see U.S. housing starts for August at 7:30 a.m., while the Fed begins its next two-day meeting. Wednesday the Energy Department releases its weekly energy inventories report at 9:30 a.m., while the Fed is expected to raise the federal funds rate by a quarter-percent at 1 p.m. Thursday we'll see USDA's weekly export sales report at 7:30 a.m., the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. U.S. existing home sales and leading indicators are set for 8 a.m., followed by the U.S. Energy Department's weekly report of natural gas storage at 9:30 a.m. Friday, as noted above, features the Cattle on Feed report.
| Rural Advocate News | Monday September 18, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts, watch for harvest anecdotes and any news from the Black Sea region. USDA's weekly grain export inspections at 10 a.m. CDT, followed by USDA's Livestock, Poultry and Dairy Outlook at 2 p.m. and Crop Progress at 3 p.m. Weather A front will bring some rain, which may be intense, along the East Coast on Monday. High pressure over the middle of the country will keep most other areas dry. That shifts east tonight with showers being possible in isolated clusters overnight into Tuesday.
| Rural Advocate News | Friday September 15, 2023 |
State Ag Departments Set Policy Priorities The National Association of State Departments of Agriculture set policy priorities for the upcoming year during its annual meeting. NASDA will advocate to give the USDA more authority to be flexible in serving farmers and ranchers who often face challenges in seeking disaster assistance. NASDA members also want existing gaps in insurance coverage and federal disaster relief programs closed to protect farmers from an increasing number of natural disasters. Members will also advocate for standards that ensure clear and consistent labeling for cell-based meat products, also referred to as cultured meat. During the meeting, NASDA also adopted a new policy of supporting laws that protect farmers’ right to farm. The new policy advocates for protecting agricultural and forestry operations from nuisance lawsuits. NASDA members also amended the organization’s policy to support increased investment in apprenticeships and educational programming because of a tremendous need for workers with training specializing in agricultural fields. *********************************************************************************** NASDA Elects News Leadership at Annual Meeting The National Association of State Departments of Agriculture finished its annual meeting by electing new leadership for 2023-2024. Blayne Arthur, Oklahoma Secretary of Agriculture, will serve as NASDA’s 2023-2024 President and host the 2024 NASDA Annual Meeting on September 22-25, 2024. “The opportunity to serve as NASDA President is incredibly humbling and certainly an honor, and I appreciate the support of my fellow Ag Commissioners in this new role,” Arthur says. “Agriculture looks different all across the U.S., but I look forward to working together to cultivate common ground as we help producers feed, fuel, and clothe the world.” She also says NASDA members will remain steadfast in their commitment to strengthen and promote agriculture in this country and she’s excited to continue this work. Arkansas Secretary of Agriculture Wes Ward is the new Vice President, Amanda Beal of Maine is Second VP, and Washington’s Derek Sandison is the Secretary-Treasurer. *********************************************************************************** September is National Chicken Month September is National Chicken Month, celebrating the most-consumed meat in the U.S. Two-thirds of all chickens in America are raised in Alabama, Georgia, Arkansas, North Carolina, Mississippi, and Texas. Chicken is also one of the top agricultural exports for the U.S. Foreign markets are increasingly important, accounting for $4.4 billion and 16 percent of world production in 2022. The U.S. is the second-largest exporter in the world as more than 145 countries imported U.S. frozen chicken leg quarters, legs, and thighs last year. While American consumers prefer chicken breast meat, dark meat is more widely desired and consumed internationally. Most U.S. chicken meat exports are often destined for low and middle-income countries that value safe, affordable, and tasty high-protein options. In 2022, almost all of the U.S. broiler meat exports went to developing economies. Fourteen percent of shipments were exported to some of the least developed countries in the world. *********************************************************************************** EPA Resolves Long-Standing ESA Litigation The U.S. Justice Department, on behalf of the Environmental Protection Agency, resolved long-standing litigation covering over 1,000 pesticide products. The resolution allows EPA to fulfill its obligations to protect endangered species while conducting reviews and approvals of pesticides in a safe and protective manner. In 2011, a lawsuit was filed against EPA alleging it violated the Endangered Species Act when it registered or reevaluated the registration of 382 pesticide active ingredients. A settlement entered in a federal court resolves all outstanding claims. “The agreement is a win-win to protect endangered species, ensure the availability of pesticides needed to grow food across America, and save considerable time and taxpayer expenses further required to litigate this case,” says Michael Freedhoff of the EPA. “This settlement allows EPA time to fulfill its obligations under the ESA and adopt key elements from the Agency’s 2022 ESA work plan, which has a wide range of stakeholders’ support.” *********************************************************************************** USDA Invests $6.5 Million in Risk Management Education The USDA is awarding approximately $6.5 million to 22 organizations to educate underserved, small-scale, and organic producers on-farm risk management and climate-smart farm practices. The funding from the Risk Management Agency provides assistance through its Risk Management Education partnerships for organizations like non-profits and land grant universities. “This funding and these partnerships are integral to our outreach efforts in communities that historically have not had access to training about risk management options,” says RMA Administrator Marcia Bunger. “As a farmer, I know first-hand that agriculture is a risky business.” She also says because of that risk, the agency is determined to work with growers and livestock producers to provide them with training and resources about risk management options and how to apply them to their farming businesses. RMA first advertised the available funds in January, and this year’s recipients include nonprofits, historically black colleges, and university extensions, among others. *********************************************************************************** Farmers Show High Interest in Harvest Autonomy Farmers in the U.S. and Canada appear to be embracing autonomous technology to optimize their operations and boost productivity. A survey conducted by Forward Group revealed that 65 percent of the operators surveyed expressed enthusiasm for adopting autonomy solutions, while 29 percent showed high levels of enthusiasm. The survey findings emphasize the positive impact of autonomous solutions on farming efficiency, profitability, and sustainability. Sixty-seven percent of the farmers intend to adopt autonomy technology by 2027, with 47 percent planning integration into their operations by 2025, provided the technology proves effective for the tasks. The survey also shows that 59 percent of farmers believe the autonomy will bring significant value to their carting operations. A substantial 51 percent of respondents expressed trust in autonomy technology for their harvesting. The driving factors behind the growing interest include 42 percent of the farmers interested in the technology wanting the autonomy to increase their productivity.
| Rural Advocate News | Friday September 15, 2023 |
Friday Watch List Markets U.S. industrial production in August is out at 8:15 a.m., followed by the University of Michigan's consumer sentiment index at 9 a.m. The National Oilseeds Processors Association will report on members' soybean crush for August later Friday morning. Weather A weak frontal boundary is moving through the Western Corn Belt on Friday with mostly light showers. Heavier showers and thunderstorms are forecast for parts of Texas. Some showers will also develop in the Southeast, otherwise the country will be dry.
| Rural Advocate News | Thursday September 14, 2023 |
Consumer Price Index: Food Prices Rise Again The Consumer Price Index for All Urban Consumers rose 0.6 percent in August on a seasonally adjusted basis, after increasing 0.2 percent in July. Over the last 12 months, the all-items index increased 3.7 percent before seasonal adjustment. The index for gasoline was the largest contributor to the monthly all-items increase, accounting for over half of the increase. The food index increased 0.2 percent in August, as it did in July. The index for food at home increased 0.2 percent over the month, while the index for food away from home rose 0.3 percent in August. The six major grocery store food group indexes were split over the month, with three increases and three decreases. The index for meats, poultry, fish, and eggs rose 0.8 percent in August as the index for pork increased 2.2 percent. The index for other food at home increased 0.2 percent over the month, and the index for cereals and bakery products rose 0.5 percent. *********************************************************************************** Voters Want Congressional Support for Low-Carbon Ethanol A new survey from Morning Consult found continued strong voter support for policies promoting the use of lower-cost, lower-carbon American-made ethanol. Registered voters also indicated robust support for specific legislation allowing the year-round sale of E15 and policy promoting the production of more flex-fuel vehicles capable of using the lower-cost E85 fuel blend. Renewable Fuels Association President and CEO Geoff Cooper says, "This nationwide poll of more than 2,000 voters shows strong support for important legislative proposals that are currently pending in the House and Senate." Among the results, 62 percent of those surveyed had a favorable opinion of ethanol, while only 17 percent had an unfavorable opinion. Further, 67 percent also support the United States increasing the availability of the E15 blend, and only 14 percent opposed the expansion of E15. Of those surveyed, 63 percent support the Flex Fuel Fairness Act, 61 percent support the Consumer and Fuel Retailer Choice Act, and 61 percent support the Next Generation Fuels Act. *********************************************************************************** Clean Fuels Releases Used Cooking Oil Outlook for Biodiesel Clean Fuels Alliance America Wednesday released a new report assessing potential global supplies of used cooking oil. Specifically, the report looks at used cooking oil to meet the growing demand for biodiesel, renewable diesel and sustainable aviation fuel through 2030. In 2022, global used cooling oil trade reached 3.7 billion gallons. With anticipated demand and added value from biodiesel and renewable diesel production, the supply could grow to between five billion and ten billion gallons by 2030. With additional global used cooking oil collection, the potential supply could increase by an additional four billion to seven billion gallons. The report indicates that the United States has the most well-developed used cooking oil collection system, due to long-standing practices for its use and disposal. In 2022, the U.S. supply reached 850 million gallons. Increasing biodiesel and renewable diesel production incentivizes domestic use of that supply – curbing recent export trends. Global used cooking oil trade reached 1.3 billion gallons in 2022. *********************************************************************************** AEM: Overall Tractor Sales Lower Heavy-duty row crop tractor unit sales continued to increase in the U.S., while overall farm tractor unit sales in the U.S. and Canada declined in August. The Association of Equipment Manufacturers reports 100-plus horsepower, two-wheel-drive tractors, and four-wheel-drive tractors, were the only segments to grow year over year. Both those segments, along with self-propelled combines, remain positive for the year. The biggest overall growth among tractors happened in four-wheel-drive units, growing more than 20 percent in August. AEM's Curt Blades says, "North American row-crop farmers continue to add and adopt new technology to their equipment fleets to help reduce costs and improve yields." Overall unit sales of U.S. tractors are down 4.6 percent compared to sales in August 2022, while combine sales declined slightly by 2.4 percent. Canadian tractor sales improved their pace versus the previous month, falling just over six percent, with combines declining more than 17 percent. *********************************************************************************** APHIS Finalizes Changes to Import Regulations for Horses USDA's Animal and Plant Health Inspection Service Wednesday announced the finalized amendments to its import regulations for horses. The amendments will better align regulations with international standards and allow more flexibility for permitted imports while continuing to mitigate the risk of bringing equine diseases into the United States. The regulations also provide APHIS with more regulatory authority to enforce standards for transporting horses. The changes include increasing the amount of time allowed for horses to be in a contagious equine metritis-affected region without testing upon their return to the United States from 60 to 90 days. The amendments also update ports designated for the importation of horses, adding requirements for health certifications and requiring that horses transiting Central America or the West Indies comply with the same regulations that apply to horses directly imported from these regions, given the greater risk of equine diseases of concern from these areas. The final rule goes into effect on October 16, 2023. *********************************************************************************** Few US Adults Rate Their Diet Good or Excellent New data from USDA’s Economic Research Service show Americans don’t have high ratings for their diets. In the period covering January 2017 to March 2020, just under three in ten adults, or 29 percent, reported the healthfulness of their diets was very good or excellent.” That is 3.5 percentage points lower than the corresponding share reported in 2005–06. The data can be found in the latest publicly available wave of the Flexible Consumer Behavior Survey, which collects information on U.S. consumers’ knowledge, attitudes, and beliefs about nutrition and food choices. For context, 41 percent of adults surveyed in the 1989–1991 Continuing Survey of Food Intakes of Individuals rated the healthfulness of their diets as “very good” or excellent, suggesting a continuing downward trend in the health quality individuals ascribe to their diets. FCBS is a module of the National Health and Nutrition Examination Survey, and its data reflect national trends about changing dietary behaviors of U.S. consumers.
| Rural Advocate News | Thursday September 14, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, the producer price index for August, U.S. retail sales and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage follows at 9:30 a.m. Weather A new front and an old one will make for showers in the Plains on Thursday, with any pockets of moderate to heavy rain likely to stay confined in parts of Texas. Mild temperatures continue to be the case for most areas.
| Rural Advocate News | Wednesday September 13, 2023 |
USDA Releases September WASDE Report USDA released the September World Agricultural Supply and Demand Estimates report Tuesday. This month’s corn outlook calls for slightly larger supplies and ending stocks. Projected beginning stocks for 2023/24 are five million bushels lower, and corn production is forecast at 15.1 billion bushels, up 23 million from last month. The national average yield is forecast at 173.8 bushels per acre, down 1.3 bushels. Ending stocks are up 19 million bushels to 2.2 billion. The season-average corn price is unchanged at $4.90 per bushel. Soybean supply and use changes for 2023/24 include lower beginning stocks, production, crush, exports, and ending stocks. The soybean yield of 50.1 bushels per acre is down 0.8 bushels from last month. Ending stocks are projected at 220 million bushels, down 25 million from last month. The season-average soybean price is forecast at $12.90 per bushel, up $0.20 from last month. The wheat outlook for supply and use is unchanged this month. The projected 2023/24 season-average farm price is also unchanged at $7.50 per bushel. *********************************************************************************** Crop Production Report Shows Higher Corn Production Corn production is up, while soybean and cotton production is down from 2022, according to USDA’s Crop Production report issued Tuesday. Corn production is up ten percent from last year, forecast at 15.1 billion bushels. Soybean growers are expected to decrease their production three percent from 2022, forecast at 4.15 billion bushels. Finally, cotton production is down nine percent from 2022 at 13.1 million 480-pound bales. Planted and harvested acreage estimates for corn, cotton, and soybeans were reviewed based on all available data, including the latest certified acreage data from the Farm Service Agency. As a result, area planted to corn is estimated at 94.9 million acres, up one percent from the previous estimate, area planted to soybeans is estimated at 83.6 million acres, up slightly, and area planted to cotton is estimated at 10.2 million acres, down eight percent from the previous estimate. USDA surveyed more than 7,000 producers across the country and conducted objective yield surveys for the report. *********************************************************************************** Basil Gooden Nominated as USDA Rural Development Undersecretary President Joe Biden this week nominated Dr. Basil Gooden to serve as USDA Undersecretary for Rural Development. If confirmed by the Senate, Gooden would fill the undersecretary position left vacant by Xochitl Torres Small, who was confirmed in July 2023 as Deputy Secretary of Agriculture. Agriculture Secretary Tom Vilsack responded, “Dr. Basil Gooden is a widely-respected, accomplished champion for affordable housing, community advancement, and economic development.” One of USDA’s seven mission areas, Rural Development helps to expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. Gooden recently served as a Visiting Scholar in the Sustainable Food Access Core of the Institute for Inclusion, Inquiry and Innovation at Virginia Commonwealth University. From 2016-2018, he served as the 3rd Secretary of Agriculture and Forestry for the Commonwealth of Virginia. Before that, Gooden served as the Virginia State Director for Rural Development at USDA. *********************************************************************************** USDA Announces Awards to Support One Health Initiatives USDA's Animal and Plant Health Inspection Service is awarding 36 research awards totaling more than $56 million to support One Health surveillance and coordination. One Health is a collaborative, multisectoral, and transdisciplinary approach – working at the local, regional, national, and global levels – to achieve optimal health outcomes. It recognizes the interconnection between animals, people, plants and their shared environment. The announcement includes eight Agriculture and Food Research Initiative projects from USDA's National Institute of Food and Agriculture, one National Science Foundation Ecology and Evolution of Infectious Diseases program project, and 27 projects identified through the USDA APHIS SARS-CoV-2 in animals funding opportunities. The awards will help APHIS accomplish its goal of building an early warning system to potentially prevent or limit the next zoonotic disease outbreak. APHIS Acting Administrator Dr. Michael Watson says, "This important work will strengthen our foundation to protect humans and animals for years to come." *********************************************************************************** FFAR Renews ESMC Partnership to Grow Market Program The Foundation for Food & Agriculture Research Tuesday announced the renewal of its partnership with Ecosystem Services Market Consortium, or ESMC. The foundation awarded $10.3 million in 2019 to ESMC to support its research arm, matched by ESMC for a total of $20.6 million. That research resulted in Eco-Harvest, launched in May 2022. Eco-Harvest is an ecosystem services market program that financially rewards participating producers for using regenerative agriculture practices that generate beneficial environmental outcomes. Eco-Harvest program regions include the corn and soy belt, Northern Great Plains, Southern Great Plains, Southeast and Great Lakes regions for corn, soy, wheat, oats and alfalfa cropping systems. FFAR announced an investment of $5.15 million for additional research, and ESMC is matching the award for a total $10.3 million. ESRC will conduct the research, development, demonstration and deployment activities that facilitate Eco-Harvest participating in all major U.S. agricultural regions. FFAR’s Dr. LaKisha Odom says, “These practices are critical in protecting farmers’ livelihoods and the environment, while increasing productivity.” *********************************************************************************** CHS Intends to Return $730 Million to Owners CHS Inc., the nation's leading agribusiness cooperative, has announced it intends to return $730 million in cash patronage and equity redemptions to its owners in calendar year 2024. The CHS Board of Directors determines the total amount of cash to be returned to CHS owners at the close of each fiscal year. Based on business done with CHS in fiscal year 2023, which ended on August 31, 2023, the CHS Board has elected to return $365 million in cash patronage and $365 million through equity redemptions to CHS owners. CHS owners are member cooperatives and farmer-owners in hundreds of communities across rural America. The cash returns earmarked for distribution in 2024 will combine with the previous year's cash returns for more than $1.7 billion shared with owners over two years and more than $3.2 billion returned to owners over the past ten years. Final financial results for fiscal year 2023 are expected to be announced in November 2023.
| Rural Advocate News | Wednesday September 13, 2023 |
Wednesday Watch List Markets The U.S. Labor Department's consumer price index for August will be out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m. The U.S. Treasury reports on the federal budget for August at 1 p.m. Weather A front continues to work across the far south and east on Wednesday, with mostly quiet conditions throughout the Corn Belt. A few isolated showers remain possible in the Great Lakes. Temperatures remain mild for most areas, even in Texas as the front moves through.
| Rural Advocate News | Tuesday September 12, 2023 |
Ag Labor Expenses Forecast to Increase in 2023 Total cash labor expenses for the U.S. agriculture sector are forecast to be $43.35 billion for 2023, based on new data from USDA’s Economic Research Service. This would be an increase of $0.78 billion, or 1.8 percent, over the 2022 level of $42.57 billion in inflation-adjusted 2023 dollars. The projected 2023 level would remain below the high set in 2017. Labor expenses are an important component of agricultural production costs. For every $100 spent on production expenses, almost $10 goes toward labor. Total labor expenses include contract and hired labor payments but exclude non-cash employee compensation. Generally, the animal production sector uses less hired and contract labor than the crop sector. In 2021, the animal production sector accounted for about one-third of total hired and contract labor expenses, with the remaining roughly two-thirds incurred by the crop production sector. This is because some large specialty crops are more labor-intensive than most industries in the animal sector. *********************************************************************************** NMPF Applauds Natural Disaster Assistance for Dairy Farmers New funding announced Monday from the Department of Agriculture will help dairy producers affected by natural disasters. The Milk Loss Program administered by the Farm Service Agency will compensate eligible dairy farms and processors for milk dumped due to qualifying disaster events from 2020 to 2022. Eligible disasters include droughts, wildfires, hurricanes, floods, derechos, excessive heat, winter storms and smoke exposure. The Milk Loss Program will help farmers and, in certain cases, cooperatives, recover losses previously overlooked by disaster assistance. The National Milk Producers Federation applauded the announcement. NMPF president and CEO Jim Mulhern says, “We’re very appreciative of USDA’s diligent work over several months to finalize the compensation plan that will address this backlog of disaster assistance.” Dairy farmers and cooperatives can sign up for the program through October 16, 2023. In other FSA dairy safety-net support, Dairy Margin Coverage program payments have triggered every month, January through July, for producers who obtained coverage for the 2023 program year. *********************************************************************************** TFI Welcomes STB’s Proposed Rule on Reciprocal Switching The Fertilizer Institute praised the Surface Transportation Board’s recent Notice of Proposed Rulemaking on providing rail customers access to reciprocal switching as a remedy for poor rail service. STB Chairman Martin Oberman stated in the announcement, “In the past several years, and particularly since 2021, it has become clear that many rail customers nationwide have suffered from inadequate and deteriorating rail service.” The proposal from the STB would provide a streamlined path for rail customers to obtain a reciprocal switching order by including specific, objective, and measurable criteria for determining eligibility. That criterion includes measures of service reliability, service consistency, and adequacy of local service. The proposal would also standardize these three service metrics across all Class 1 carriers for the first time. President and CEO Corey Rosenbusch says, “More than 60 percent of fertilizer moves by rail and is therefore critical to the on-time delivery of fertilizer to farmers exactly where and when they need it.” *********************************************************************************** AEM: Market Challenges Lie Ahead, But Optimism is Warranted As equipment manufacturers look ahead to the remainder of 2023 and beyond, the landscape continues to present challenges for the industry and the ag and construction customers it serves. AEM members report demand for products across both industries has softened. However, particularly in construction, investments in infrastructure, energy and utilities, point to better days ahead. And a wealth of data suggests optimism – both in the short term and long term. AEM Director of Agriculture Austin Gellings says, “Essentially, everything hinges on where a farmer is going to be able to improve their efficiency the most and in turn see the greatest return on investment.” With input costs continuing to rise, the best ways for a farmer to respond and continue to reap the rewards of strong commodity prices is to operate on those margins and find wins where they can. As farmers are looking for ways to minimize inputs while still increasing yields, technology and data provides the answer. *********************************************************************************** NASDA Foundation welcomes Next Generation class of 2023 The National Association of State Departments of Agriculture Foundation welcomes NASDA's Next Generation class of 2023, featuring 13 students from ten states. The NASDA Next Generation class of 2023 will network with commissioners, secretaries and directors of agriculture, industry leaders, and stakeholders at the NASDA Annual Meeting. The program aims to advance future leaders' understanding of agriculture policy and the role of state departments of agriculture in ensuring a healthy and thriving food system for all. Through the NASDA Next Generation programming, students learn about pressing food and agricultural policy issues, NASDA's mission, and careers in public service. During the meeting events, students can also explore Wyoming's community-based agriculture. NASDA CEO Ted McKinney says, “This cohort of students represents the wide variety of experience and dedication to agricultural excellence that will enable the industry to thrive and impact the entire food system moving forward.” You can find the list of students on the NASDA website. *********************************************************************************** GasBuddy: Weekly Fuel Prices Rise Again After falling for two straight weeks, the nation's average price of gasoline increased, rising 1.6 cents from a week ago to $3.79 per gallon. The national average is down 3.0 cents from a month ago but 11.4 cents per gallon higher than a year ago. The national average diesel price fell 0.9 cents last week to 4.42 per gallon, 58.6 cents lower than one year ago. The West Coast and the Corn Belt saw the brunt of last week's increases. More than ten states saw prices rise by more than ten cents per gallon compared to last week, while some, like Iowa and Minnesota, have seen average prices spike by over 30 cents per gallon. However, GasBuddy's Patrick De Haan says, "We should see more price decreases for most of the nation in the weeks ahead, barring further refinery disruptions and hurricane season." U.S. retail gasoline demand saw a hefty 3.9 percent decrease last week, as post-Labor Day travel appeared to drop significantly.
| Rural Advocate News | Tuesday September 12, 2023 |
Tuesday Watch List Markets USDA's Crop Production and WASDE reports are due out at 11 a.m. CDT Tuesday with prompt coverage on DTN and a post-report webinar at 12:30 p.m. The U.S. Energy Department will also release its Short-Term Energy Outlook Tuesday morning. DTN will also have a presentation of weather and markets at Husker Harvest at 2 p.m., at the DTN building, Lot 802. Weather A front continues to trek southeast through the country Tuesday, producing areas of showers from the Southern Plains to the Northeast. Temperatures behind the front continue to be mild.
| Rural Advocate News | Monday September 11, 2023 |
World Food Prices Lower in August The UN’s Food and Agriculture Organization’s Food Price Index averaged 121.4 points in August, a 2.6-point drop from July, reversing the rebound registered that month. The August drop pushed the index 38 points lower than its peak reached in March 2022. The overall drop was driven by declines in the index for dairy products, vegetable oils, meat, and cereals, while the sugar price index rose modestly. The Dairy Price Index averaged 111.3 points in August and took the biggest drop, down 4.6 points from July, the eighth-straight monthly decline. The Vegetable Oil Index averaged 125.8 points, 4.6 points below July. The Meat Price Index averaged 111.3 points in August, down 4.6 points from July, the eighth-consecutive monthly drop. The Sugar Price Index averaged 148.2 points in August, up 1.9 points from July and as much as 37.7 points, or 34 percent, from its level in the same month last year. *********************************************************************************** July Pork Exports Stay Above 2022 Levels Building on a robust first half of 2023, July pork exports continue to outpace 2022 levels. USDA data showed July pork exports at 219,000 metric tons, up five percent from last year, while export value rose one percent to $628.7 million. Exports to the top market, Mexico, continued at a record pace. “Market diversification has been the top priority for the U.S. pork industry, and those efforts certainly reflect these results,” says Dan Halstrom, President and CEO of the U.S. Meat Export Federation. Through the first seven months of this year, exports were 13 percent higher than last year’s pace at 1.69 million metric tons. Beef exports stepped back in July, posting the lowest volume since January. July beef exports totaled 103,167 metric tons, 18 percent below last year. Beef export value was down 19 percent to $810.4 million, the lowest since February. Exports posted gains in Mexico, Taiwan, and Canada. *********************************************************************************** NCGA Wants Aviation Biofuel Tax Decisions Tied to Emissions Model Asserting that U.S. tax policy should be tied to the best standards the government has, 17 of the nation’s top corn grower leaders sent a letter to Treasury Secretary Janet Yellen. It encourages her to adopt an emissions model developed by the Energy Department as her agency works with the IRS to determine which biofuels lower greenhouse gas emissions enough to qualify for sustainable aviation fuel tax credits under the Inflation Reduction Act. The letter comes as corn ethanol has been used for years in cars and trucks while saving consumers money on fuel. Ethanol is being considered for use in the aviation arena, where experts say the biofuel would do for airplanes what it has done for autos. Corn grower leaders point out that the tax credit from the IRA will be crucial to ensuring ethanol is quickly made available in the aviation sector. A decision will get made this month. *********************************************************************************** U.S. and India Resolve Outstanding WTO Poultry Dispute U.S. Trade Representative Katherine Tai says the U.S. and India resolved their last outstanding dispute at the World Trade Organization. As a part of the agreement, India also agreed to reduce tariffs on U.S. products like frozen turkey, frozen duck, and fresh and frozen blueberries and cranberries. Tai says the tariff cuts will expand economic opportunities for American agricultural producers in a critical market and help bring more U.S. products to consumers in India. “Resolving this last outstanding WTO dispute represents an important milestone in the U.S.-India trade relationship while reducing tariffs on certain American products enhances crucial market access for American farmers,” says Tai. In June, the U.S. and India agreed to terminate six outstanding disputes at the World Trade Organization. India agreed to reduce tariffs on certain U.S. products like lentils, almonds, walnuts, apples, and others. “This agreement resolves a long-standing dispute and deepens the relationship,” Tai adds. *********************************************************************************** August Rainfall Provides Inflow to the Missouri River System Rainfall in the Missouri River Basin above Sioux City, Iowa, was above normal during August, resulting in above-average runoff. However, because of drier-than-normal conditions in previous years, total storage in the Missouri River reservoir system remains lower than normal. Based on September 1 system storage, releases from the Gavins Point Dam will be 13,000 cubic feet per second, slightly above the minimum rate. “August rainfall provided some inflow into the Upper Missouri River Basin Reservoir System,” says John Remus, chief of the Army Corps’ Missouri River Basin Water Management System. “Some areas received up to 400 percent of normal rainfall.” August runoff was 1.7 million acre-feet, 121 percent above average in Sioux City. The updated 2023 forecast for the upper basin is 29.1-million-acre feet, 113 percent of average. The annual average runoff for the upper basin is 25.7-million-acre fee. The total volume in the System was 55.5 MAF on September 1. *********************************************************************************** New Checkoff Website for the Sheep Industry America’s Lamb producers can now turn to LambBoard.com for resources on checkoff production, promotion, and other programs. The new American Lamb Board site officially launched on September 7. “This is a totally new site for America’s Lamb industry,” says Peter Camino, ALB Chair. “That includes commercial and seedstock producers, feeders, direct marketers, sale managers, auction markets, and processors.” He also says it’s home to everything about the American Lamb Board and the checkoff program. A wealth of information is available on the site, including the best practices for sheep productivity and efficiency, lamb quality, and recipes. There are also premium items for local promotions in the ALB store, free downloadable handouts, and details on ALB’s cooperative funding program. Producers can find the latest news and results of the American Lamb Checkoff’s activities and an online assessment payment tool. Producers selling directly to consumers can check out toolkits on marketing to ethnic markets.
| Rural Advocate News | Monday September 11, 2023 |
Monday Watch List Markets USDA's weekly report of export inspections is due out at 10 a.m. CDT Monday, followed by Crop Progress at 3 p.m. DTN will be watching for any new sales of corn or soybeans, private production estimates, and any weather issues around the globe, especially in Argentina, Brazil and Australia. The September WASDE will be out on Tuesday morning. Weather A front continues to sag through the Corn Belt on Monday. It brought scattered showers to many areas over the weekend and continues its pursuit to the Southeast with more showers. Heavier precipitation will likely remain relegated to the Plains, though some bursts through the Midwest will also be possible.
| Rural Advocate News | Friday September 8, 2023 |
Federal Reserve Releases August Beige Book The Federal Reserve released its August Beige Book update, a summary of commentary on current economic conditions from the Fed. The report includes several observations on the U.S. agricultural economy. Drought was affecting several of the Fed’s districts across the country. In the Tenth District, the Kansas City Fed says the farm economy was strong, but conditions softened alongside lower commodity prices and persistent drought. In the Eleventh District in Dallas, a significant portion of the district entered or re-entered drought during the past six weeks. In the Minneapolis Fed’s Ninth District, prices were retreating to levels that could be below break-even for some producers because of high input costs. In the Eighth District of St. Louis, the percentage of cotton and rice rated fair or better stayed stable despite record-breaking heat and heat-dome-induced thunderstorms. In the Twelfth District of San Francisco, conditions in the agriculture and resource-related sectors remained largely unchanged. *********************************************************************************** NMPF Reorganizes Leadership The National Milk Producers Federation announced staff reorganization as it transitions to new leadership. Incoming President and CEO Gregg Doud began working with the organization as the organization’s Chief Operating Officer, a position he will hold until the current President and CEO Jim Mulhern retires in January. “I am excited to announce these changes, which will enhance the efficiency and effectiveness of our structure,” Mulhern says. “They also recognize the contributions of the affected individuals to our overall success.” He also says these changes also position the organization well for even greater success in the future. NMPF named three new Executive Vice Presidents as part of the reorganization, recognizing responsibilities that are expanding across NMPF teams. Paul Bleiberg is the Executive Vice President of Government Relations, Shawna Morris is the Executive VP of Trade Policy and Global Affairs, and Alan Bjerga is the Executive VP of Communications and Industry Relations. *********************************************************************************** CAB Launches New Direct-to-Consumer Program Certified Angus Beef launched a brand-new Ranch to Table Program. That means Angus farmers and ranchers now have the option to market their beef directly to consumers as a CAB product. Ranch to Table is a direct partnership program between CAB and cattle operations using Angus genetics that allows ranchers to use the brand’s trusted reputation for increased gain. “This is another way for Angus ranchers to continue taking pride in and having equity in the brand by being able to hang brand standards on those cattle that ultimately qualify,” says Kara Lee, director of producer engagement for CAB. To participate in the program, a producer’s cattle must incorporate registered Angus genetics, which may require American Angus Association active membership or proof of bull registrations. Producers must also be Beef Quality Assurance certified. As with any CAB product, the cattle must meet the brand’s live-animal evaluation with a predominantly solid-black hide. *********************************************************************************** Another Challenge to GMOs The Center for Food Safety filed a legal appeal against the USDA in response to its genetically engineered labeling rules. The organization says those rules do not mandate clear on-package food labeling and allow unlabeled hidden GMOs to proliferate in the U.S. food marketplace. The CFS was victorious in a 2022 district court ruling in its original USDA lawsuit, which found it unlawful to use inaccessible digital QR codes on food products instead of clear and accessible labeling. Despite the decision, the court refused to vacate USDA’s decision allowing this practice. “USDA is hiding the presence of the majority of GMO food ingredients from American consumers with its exemption for highly-refined foods despite a law passed by Congress,” says Meredith Stevenson, CFS attorney. “The Court rubber-stamped USDA’s decision to exclude highly refined foods like sodas and oils from labeling and use unfamiliar terminology, keeping consumers in the dark about their food.” *********************************************************************************** The First Autonomous Tractor Arrived at the University of Missouri It took more than a year, but University of Missouri researchers welcomed the arrival of one of the nation’s first-of-its-kind electric, autonomous tractors. It’s known as the Monarch MK-V tractor. Researchers called it a “revolutionary piece of technology” that will get studied for its ability to refine agricultural practices and support farmers with disabilities. The University received the tractor as part of a grant awarded by the USDA’s Equipment Grants Program. The new tractor, to be charged with a biofuel generator, will serve as a tool for teaching and research in the agriculture and engineering programs. Researchers will explore the autonomous functions of the tractor, like making use of the sensors and cameras to collect images and then store the data from those images. They also want to understand the tractor’s ability to use artificial intelligence to enhance precision agriculture. Researchers are quite excited about the next generation of technology. *********************************************************************************** Brazil Breaks Soybean Export Record with Surprise Sales The University of Illinois Farmdoc Daily says Brazil’s farmers are shipping out a lot of soybeans. Brazil’s farmers harvested almost 160 million tons of soybeans during the previous crop season. That resulted in record exports in the first seven months of 2023. Price competitiveness led to a significant increase in the volume of soybeans shipped to China. Brazil also benefited from sales to a nation that’s not on its regular customers list: Argentina, the third-largest soybean producer behind Brazil and the U.S. Argentina lost almost half its soybean crop because of drought. To meet its crushing industry contracts for soybean oil and meal, Argentina purchased Brazilian soybeans and became the second-leading destination for Brazil’s soybeans after China. Argentina is also losing its top position as soybean meal exporter this season, giving up its spot to neighboring Brazil. Brazil’s soybean exports reached 72.47 million tons during the first seven months of 2023.
| Rural Advocate News | Friday September 8, 2023 |
Friday Watch List Markets U.S. government reports are scarce on Friday with only wholesale Inventories and the consumer credit report. The weekly Export Sales report will be released at 7:30 a.m. CDT. DTN will be watching for grain and soybean export sales on Friday, and weather issues in primarily Australia and Brazil. Weather A front remains across the East and portions of the Southern Plains Friday. Some clusters of thunderstorms will be possible in both areas. Another system is moving into the Northern Plains and will develop some isolated showers. But most areas will be dry with mild temperatures.
| Rural Advocate News | Thursday September 7, 2023 |
Monthly Monitor Forecasts a Positive Crop Outlook The University of Missouri’s Monthly Monitor surveys economists nationwide about their projections for agricultural trends. The report, compiled by the Rural and Farm Finance Policy Analysis Center and Farm Journal, is forecasting a positive outlook for farm finances even as the weather has created significant challenges in North America. July’s results showed more optimism than the previous Monthly Monitor in June. Economists seem to be more positive about the crop side of the ag economy compared to livestock. Sixty-four percent of the economists surveyed were positive about crops, and 55 percent had a negative view of livestock. Despite the weather challenges, farmers are seeing continued productivity and efficiency gains that lead to strong balance sheets. Looking ahead, the economists say global competition and geopolitical risks could impact crop prices in the next six months. In livestock, economists worry about feed costs and how they could affect livestock prices and profitability. *********************************************************************************** Farm Bureau Testifies at FMMO Hearing American Farm Bureau Federation Chief Economist Roger Cryan testified at the ongoing Federal Milk Marketing Order Pricing Formula hearing. Farm Bureau membership includes cooperatives and independent dairy farmers, most of whom are directly or indirectly affected by the pricing provisions in the FMMOs. Farm Bureau’s testimony focused on the reduction or elimination of negative producer price differentials and the de-pooling they cause. An orderly pool is the key to orderly marketing and the continued benefits of the Federal Milk Marketing Orders for farmers, cooperatives, processors, and consumers. The key to an orderly pool is the proper alignment of the four Class prices. Other proposals include supporting the National Milk Producers Federation’s suggestion to drop barrel cheese from Class 3 component and price calculations. AFBF also proposes that 640-pound blocks get added to the National Dairy Sales Report, to the cheddar cheese price calculation, and to the Class 3 protein calculation. *********************************************************************************** Stabenow, Boozman Want USDA Funds for Market Development The National Corn Growers Association applauds Senators Debbie Stabenow (D-MI) and John Boozman (R-AR) for sending a letter to the USDA on increasing market development opportunities. The Senate Ag Committee leaders want the agency to allocate funding from the Commodity Credit Corporation to support creating new and better market opportunities for farmers, as well as in-kind international food assistance. “Cultivating new foreign markets is one of our top priorities,” says National Corn Growers Association President Tom Haag (HAYG). The letter says, “Farm bill trade promotion programs help address the need to build new markets. We believe that resources available under the CCC can support similar efforts to open access to markets and promote American-grown products overseas.” The CCC funds are used by government to implement specific programs established by or to carry out activities under the CCC Charter Act. NCGA has called on Congress to increase investments in these programs. *********************************************************************************** Idalia Kills at Least Five Million Chickens in Florida Almost a week after Hurricane Idalia hit Florida, the livestock body count is climbing higher, especially in poultry operations. The Messenger says estimates say as many as five million chickens died from the Category Three storm. Winds were around 125 mph when the storm hit land. The hurricane tore apart barns and fence lines and killed livestock from cattle to chickens. Chicken coops were ripped apart by high winds or high waters, and many coops were crushed by falling trees. The chickens that survived the storm were seen roaming around looking for food as their feeders were destroyed in the storm. Many others died in the heat and humidity. The storm hit farmers hard, tearing up crops and multiple livestock facilities. A spokeswoman for the University of Florida’s Institute of Food and Agricultural Sciences says the actual death count of poultry could take months after all the assessments are completed. *********************************************************************************** USDA Grant Helping Promote Sustainable Aviation Fuel Gevo (JEE-voh), Incorporated, announced that it’s received a $30 million grant from USDA for its Climate-Smart Farm-to-Flight Program. The grant is from USDA’s Partnerships for Climate-Smart Commodities. The Gevo program is intended for tracking and quantifying the carbon-intensity impact of climate-smart practices while creating market incentives for low-carbon-intensity corn to help accelerate the production of sustainable aviation fuel and low-CI ethanol. “Our Farm-to-Flight Program aims to count all the carbon at the field level and reward farmers on a performance basis for delivering low-CI corn, as well as to accelerate the production of SAF to reduce dependency on fossil-based fuel,” says Dr. Paul Bloom, Chief Carbon Officer and Chief Innovation Officer for Gevo. “The program will also focus on deploying our Verity Tracking platform to farmers to help them measure, report, and verify their CI reductions.” The grant will also help count all carbon through the entire business system and reward farmers. *********************************************************************************** Governors Standing Firm on States’ Rights in the Farm Bill Groups like Competitive Markets Action and the Organization for Competitive Markets applauded the National Governors Association for urging Congress to prioritize the next farm bill. The co-chairs of the NGA’s Education, Workforce, and Community Investment Task Force sent a letter to Congressional leaders urging them to consider several key priorities for the new bill. The governors emphasized the importance of avoiding preempting state-level laws regarding agricultural production. They said, “States succeed when the federal government avoids granting a private right of action against states that maintain their own production or manufacturing standards on agricultural products.” The Ending Agricultural Trade Suppression Act is a controversial bill currently being considered by Congress. The groups say it would upend states’ rights by nullifying more than a thousand state and local agriculture laws. Marty Irby, president of Competitive Markets Action, says they applaud the Governors Association for advocating on behalf of farmers and states’ rights.
| Rural Advocate News | Thursday September 7, 2023 |
Thursday Watch List Markets The U.S. Labor Department's report on U.S. productivity is set for 7:30 a.m. CDT Thursday, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is at 9:30 a.m., followed by weekly energy inventories at 10:00 a.m. Weather Temperatures across most of the Corn Belt are mild, with some higher temperatures briefly in the far west the next couple of days. A front has essentially cleared the region with showers on the periphery, some of which may be stronger across the East, Southern Plains, and Nebraska later Thursday. It remains hot in and around Texas.
| Rural Advocate News | Wednesday September 6, 2023 |
Lower Beef Demand in Most Worldwide Markets Other than in the U.S., beef markets around the world are seeing softer consumer demand. A Rabobank Q3 Global Beef Quarterly Report says cattle prices are split into two groups: those in North America and Europe, and those in the rest of the world. Declining supplies and strong consumer demand in the U.S. are driving cattle prices higher, and lower domestic beef supply has also held up prices in Canada and Europe. It’s the opposite in most other regions, where increased supply and lower demand are making prices softer. Rabobank says U.S. cattle prices have increased almost 30 percent over the past 12 months, while Australian cattle prices have dropped by more than 30 percent, calling it the largest spread they’ve seen in the past decade. In a number of regions, particularly in Asia, beef purchases made in anticipation of COVID recovery haven’t been consumed yet, leaving supply chains full. *********************************************************************************** Farmer Sentiment Drops in August Producer sentiment lowered during August as the Purdue University/CME Group’s Ag Economy Barometer dipped eight points to a reading of 115. The month’s decline was driven by producers’ weaker perception of current conditions on their farms and throughout U.S. agriculture. The Current Conditions Index fell 13 points to a reading of 108. The Future Expectations Index also dropped by five points to a reading of 119 in August. Rising interest rates and concerns about high input prices continue putting downward pressure on producer sentiment. When asked about their top concerns over the next year, 34 percent of survey respondents said higher input prices and 24 percent said rising interest rates. Even though crop prices weakened during the summer, only one in five producers chose declining commodity prices as one of their top concerns. The Farm Capital Investment Index was lower this month, dropping eight points to a reading of 37. *********************************************************************************** FAPRI Releases U.S. Baseline Outlook The Food and Agricultural Policy Research Institute at the University of Missouri released its annual U.S. Baseline Outlook report. It includes projections for agricultural and biofuel markets and helps in evaluating alternative scenarios for agricultural policy. “Projected prices for most crops, poultry, and dairy products all retreat in 2023 from recent peaks, and so do some production expenses,” says FAPRI Director Pat Westhoff. Among the findings, the report says if weather conditions allow crop yields to return to trend-line levels in 2023, prices for corn, soybeans, wheat, cotton, and many other crops are likely to fall. Higher fertilizer, fuel, and feed costs contributed to a very sharp increase in farm production costs last year, but a smaller increase is projected in 2023. Lower prices in some inputs will likely bring down production costs in 2024 and 2025. Hog, poultry, and dairy prices will fall, but beef prices will remain high. *********************************************************************************** Entries Open for 2024 Dairy Checkoff’s New Product Competition Dairy Management, Inc. is accepting applications from college students for the 2024 New Product Competition. The competition seeks innovative dairy product concepts and is open to undergraduate and graduate students in the U.S. DMI wants students to develop innovative, dairy-based products for health and wellness consumers. Successful entries must meet competition criteria, demonstrate innovation, and provide value to consumers. The competition is an opportunity for students to develop new products in line with current industry and consumer insights to uncover innovative dairy-based products for health and wellness. Consumers are emphasizing health and wellness, so they’re looking for products that provide benefits to digestion, immunity, joint health and mobility, and overall health. The judging panel will include experts from across the dairy industry. Winning teams get recognized at the American Dairy Science Association’s annual meeting in West Palm Beach, Florida, from June 16-19, 2024. The contest will award a combined $27,000. *********************************************************************************** Agriculture On Guard Against Cyber-Attacks Agriculture has seen increasing online attacks in recent years. Global AgTech says technology makes running daily operations easier and helps increase output. Different types of technology help with efficiency, yield, and profitability, and they include computers, robotics, drones, software, and vehicles. One of the biggest reasons agriculture has become an online target is due to the vital role it plays in the country’s economy. Farms are also considered easy targets. Many farmers haven’t implemented cybersecurity measures and are unaware of the vital role those measures play in the success of their operations. Industry experts recommend farmers implement security measures to protect their businesses. Among some of the recommended best practices, farmers should have a dedicated contingency plan. It’s also important to protect all login information. Make sure to put measures in place to protect against phishing attacks. It’s also very important to install antivirus software and make sure it stays updated. *********************************************************************************** World Record Soybean Yield Set in Georgia Alex Harrell of Smithville, Georgia, set the world record for soybean yield with an average of 296.7 bushels per acre. The yield was harvested on August 23 and verified by the University of Georgia Extension Service. “We knew it was going to be good, but maybe not quite this good,” says Alex Harrell. “There’s no silver bullet when it comes to high yields, but it’s important to have good products, people, and timing.” Harrell’s world record soybean yield is indicative of advancements in precision breeding, biotechnology, and increased knowledge of farm management practices. Harrell experienced favorable conditions through the growing season. Only two significant weather events with excess rain caused emergence challenges and some flooding. “I’m used to soybeans being in the average range of about 40 bushels an acre,” says Doug Collins, University of Georgia Lee County Extension Agent. “Neither Alex nor I thought the yield would be that high.”
| Rural Advocate News | Wednesday September 6, 2023 |
Wednesday Watch List Markets The U.S. Commerce Department will report on the U.S. trade deficit for July at 7:30 a.m. CDT Wednesday. Traders will continue to keep close watch on the latest weather forecasts and news from Ukraine. Weather A front that pushed through the Western and Central Corn Belt on Tuesday will move through eastern areas on Wednesday. Scattered showers and thunderstorms are expected with the front, some of which may be stronger. The front will not make it down through the Southern Plains, though. Temperatures behind the front are significantly cooler than the extreme heat noted ahead and south of it.
| Rural Advocate News | Tuesday September 5, 2023 |
RMA Makes Changes to Whole Farm Revenue Protection Policies The USDA announced it is improving crop insurance options for small and diversified farmers by improving the Whole-Farm Revenue Protection and Micro Farm Insurance plans. The updates are a part of the Risk Management Agency’s efforts to increase participation and access to crop insurance. “The improvements in both policies are a direct response from feedback we’ve received from producers,” says RMA Administrator Marcia Bunger. “These are two of the most comprehensive risk management plans available, and they are especially important to specialty crop, organic, urban, and direct-market producers.” Changes to the Whole-Farm policy include allowing all eligible producers to qualify for 80 and 85 percent coverage levels. Producers will also be able to purchase catastrophic coverage level policies for individual crops. Micro Farm policy improvements include moving the sales closing date to a less busy time of year, especially helpful for agents to assist growers with important risk management decisions. *********************************************************************************** CoBank: Drought, Heat Threaten Soybean Crop at a Critical Stage Prolonged drought and record heat are threatening soybean yields in several key growing states across the Midwest. With most of the soybean crop still in the critical pod-setting phase that depends on August moisture, persistent dry conditions are lowering yield production and raising concerns about the availability of supplies. CoBank’s Knowledge Exchange did research that found soybeans have a much tighter supply situation than corn due to the loss of planted acres. “If hot and dry conditions continue in the Midwest and yield loss for soybeans increases, the U.S. soybean supply will tighten further,” says Tanner Ehmke, lead grains and oilseeds economist for CoBank. “That will result in stronger interior cash basis and lower exports.” More pods will likely get aborted if the hot and dry conditions continue. In addition to drought and heat stress, scouts on the recent Pro Farmer Crop Tour noticed sudden death syndrome across multiple soybean fields. *********************************************************************************** What’s Ahead for the Farmland Market? Recent farmland sale prices and values have increased to levels never before seen in the agricultural land market. Paul Shadegg (SHAH-deg), senior vice president of Real Estate Operations at Farmers National, says the momentum in the farmland market began building 25 years ago. But is it sustainable moving forward? There continues to be strong interest in buying ag land across the U.S. Both individual buyers and land investors have created this competitive atmosphere in the agricultural real estate market. Shadegg and Farmers National predict that will increase moving through the second half of 2023. At the same time, properties offered to the market will likely be limited, which will help sustain current values. They also expect to see a plateau in land values based on past agriculture cycles and a new normal in land values. Land values will continue to be driven by buyer competition and available supply for sale. *********************************************************************************** Barge Freight Rates Climb on Lower Water Levels The cost of transporting harvested commodities down the Mississippi River is climbing. The rates are rapidly rising as shrinking water levels drive barge freight rates higher. The forecast calling for below-average rainfall isn’t offering any relief. Bloomberg says barge spot rates on August 29 were up 49 percent from the prior week and 42 percent from last year at $23.34 per ton. USDA data says that’s 85 percent higher than the three-year average. Last year, extremely low water levels stranded more than 2,000 barges on the Mississippi River, bringing commerce to a halt on the waterway. The Mississippi River carries more than 45 percent of all U.S. agricultural exports to ports in the South. Water levels resumed dropping in June, restricting the amount of grain allowed on each barge. In turn, that leads to a tighter supply of barges as more of them are required to transport the same amount of grain. *********************************************************************************** West Coast Port Workers Ratify Contract Dock workers at West Coast ports ratified a six-year contract that improved pay and benefits for 22,000 employees at 29 ports from California to Washington state. Members of the International Longshore and Warehouse Union voted 75 percent in favor of approving the West Coast port worker agreement that runs until 2028. Reuters says longshore workers covered by the agreement are based at some of the busiest seaports in the nation, including the Port of Los Angeles/Long Beach, which is the busiest ocean trade gateway in the U.S. “The contract negotiations were protracted and challenging,” says ILWU International President Willie Adams. The union and the Pacific Maritime Association employer group reached a tentative agreement back in June, ending 13 months of talks. The agreement eased worries that more West Coast disruptions could hit the all-important retail holiday shipping season. West Coast ports lost business to others on the East and Gulf Coasts. *********************************************************************************** Drought Intensifies in the Weekly Drought Monitor The weekly Drought Monitor showed drought getting worse across areas in the Midwest, South, Southwest, and the Pacific Northwest. In the Midwest, extreme heat impacted areas like Minnesota, Iowa, Missouri, Wisconsin, and Illinois. Record high temps were set in cities like Chicago (98), Milwaukee (101), and Minneapolis (101). Areas in the South, including the Texas Gulf Coast, Louisiana, and Southern Mississippi, saw continued drought-related deterioration on this week’s map. Temperatures continued to push over 100 degrees during the week, breaking records. Houston reached 109, San Antonio hit 104, Austin was 107, and Dallas topped out at 109. Some areas on the map did see some improvement, including southern Texas, where heavy rains from Tropical Storm Harold provided much-needed relief to the region. Rainfall accumulation along the southern Gulf Coast and South Texas Plains regions ranged from two to six inches. In the Southeast, areas of Florida were impacted by Hurricane Idalia.
| Rural Advocate News | Tuesday September 5, 2023 |
Top 5 Things to Watch - Seed Buying, Looming Harvest, South America Planting Season Get Focus OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Sept. 3. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Markets closed Monday: Reminder that commodity markets are closed for the Labor Day weekend on both sides of the U.S./Canada border. Our coverage will pick up late Monday night and DTN subscribers will see updates in our Tuesday Early Word and Before the Bell pieces. 2. Harvest looms: DTN reporters are beginning to hear of fields being opened up in the Corn Belt. Watch for news from the field as it comes in and look for the latest on propane prices and expectations as drying season begins. 3. Land values stay strong: We're continuing to watch land sales after some interesting numbers of late, we'll have additional sales information from the staff and from the pages of Progressive Farmer magazine. 4. Weather eyes shift South: While harvest weather is top of mind, the grain trade is beginning to shift its gaze below the equator as Brazil, Argentina and other South American producers begin to pull planters into the field. Expect continued updates on their weather and prospects from the DTN meteorological team. 5. Seed-buying season: Seed-buying season gets earlier and earlier. The September issue of Progressive Farmer magazine is chock-full of articles to help you think through your choices for next year's seed lineup.
| Rural Advocate News | Tuesday September 5, 2023 |
Tuesday Watch List Markets Back from the three-day weekend, traders will pay close attention to the latest changes in weather and any news regarding Ukraine and Russia. OPEC is also expected to make an announcement regarding oil production this week. USDA's weekly grain export inspections are due out at 10 a.m. Tuesday, followed by Crop Progress at 3 p.m. Weather A system and cold front are moving through the Northern Plains early Tuesday with scattered showers, followed by much cooler temperatures. The system will move through the central Corn Belt throughout the day, bringing scattered showers especially to northern areas, but also some isolated showers for other parts of the Corn Belt as well.
| Rural Advocate News | Friday September 1, 2023 |
USDA Funding Will Help Farmers Lower Energy Costs Ag Secretary Tom Vilsack says his agency is awarding $266 million in loans and grants to agriculture producers and rural small businesses. The funds will be for making investments in renewable energy and energy efficiency improvements that will lower energy costs, generate new income, and strengthen the resilience of their operations. “Creating opportunity for rural communities means investing in farmers, ranchers, and small businesses,” Vilsack says. “These funds will make sure our producers and business owners are not only a part of the clean energy economy but are also directly benefiting from it.” The secretary also says these once-in-a-generation investments in renewable energy, like wind and solar, and energy-efficient technologies create new markets and deliver real cost savings for our small and mid-sized agricultural operations and Main Street businesses, building and keeping wealth in rural America. The department is making the funds available through the Rural Energy for America Program. *********************************************************************************** EPA is Right to Deny Refinery Exemptions Growth Energy, the nation’s largest biofuels trade association, filed briefs to intervene in three cases this week to support the Environmental Protection Agency. More specifically, Growth Energy supports the agency’s decisions to deny small-refinery exemptions for refiners who are seeking to avoid complying with their blending obligations under the Renewable Fuel Standard. Emily Skor, CEO of Growth Energy, says petitioners have tried over and over again to avoid complying with the RFS because less biofuel in America’s fuel supply means more money in their pockets. “Thankfully, EPA has continued to rightly deny the exemptions, having demonstrated again and again that refiners have no good reason not to meet their blending obligations,” she says. “In this week’s filings, Growth Energy continues to seek to defend the RFS, which is the nation’s most successful climate policy to date, from any attempts to weaken it.” The filings in each case are available at growthenergy.org. *********************************************************************************** Brazil Now the World’s Biggest Corn Exporter For more than 50 years, U.S. farmers were dominant in the international corn market, far and away shipping more corn than anyone else to help feed the world’s stockpiles and manufacture food. A Bloomberg article says that’s no longer the case. In the agricultural year that ended on August 31, the U.S. gave up that top spot in corn exporting to Brazil, and it might not be coming back in the near future. In the 2023 harvest year, Brazil will dominate the world’s global corn exports at 32 percent, well ahead of the 23 percent of corn shipped by the U.S. into the export market. America has only dropped out of the top spot once, doing so in 2013 because of a severe drought. Losing the lead in corn exports may unfortunately be familiar to U.S. producers, who lost the top spot in soybean and wheat exports during the last ten years. *********************************************************************************** U.S. and Canadian Cattle Herds Drop Three Percent Downsizing in the U.S. and Canadian cattle herds continued through the first half of 2023. All cattle and calves in the U.S. and Canada combined to total 108 million head on July 1, 2023, down three percent from the 111 million head on July 1, 2022. All cows and heifers that have calved, at 43.4 million head, were down two percent from last year. All cattle and calves in the U.S. totaled 95.9 million head on July 1, 2023, down three percent from July 1, 2022. All cows and heifers that have calved, at 38.8 million head, were down two percent from a year ago. All cattle and calves in Canada as of July 1, 2023, totaled 12.2 million head, down one percent from the 12.3 million head on July 1 of last year. All cows and heifers that have calved totaled 4.62 million head, down one percent from last year. *********************************************************************************** World’s Rice Supplies Get Tighter Rice prices are climbing around the world as supplies get tighter. Key exporting countries like Thailand and Vietnam have seen rice prices climb as much as 20 percent since India banned shipments of a key rice variety in July. India is the world’s largest shipper of the grain, and the export ban is squeezing global supplies. Reuters says traders expect similar export cuts by other countries that need to ensure their domestic food security. That’s leaving importers scrambling to acquire other shipments of rice. India banned exports of broken rice last year and imposed a duty on shipments of various grades of rice. That ended price stability that ran for over ten years. India did allow traders to ship out non-basmati white rice cargoes that were stuck in ports when India imposed its export ban. India’s farmers have planted 89.2 million acres of rice, 4.3 percent higher than last year. *********************************************************************************** Ethanol Production Hits Three-Month Low The Energy Information Administration says ethanol output dropped to a three-month low while inventories hit the lowest point since November. Ethanol production dropped to an average of 1.007 million barrels a day during the week ending on August 25. The EIA report says that’s down from 1.048 million barrels during the previous week and the lowest level since May 26. In the Midwest, by far the largest-producing region in the country, output dropped to 952,000 barrels a day from 992,000 the prior week. Rocky Mountain production fell by 2,000 barrels a day to 11,000. That was the entirety of the losses as West Coast output was unchanged at 10,000 barrels a day. East Coast and Gulf Coast production each rose by 1,000 barrels per day, coming in at 13,000 barrels a day and 22,000 barrels a day, respectively. Ethanol inventories dropped to 21.61 million barrels, the lowest since November 11.
| Rural Advocate News | Friday September 1, 2023 |
Friday Watch List Markets U.S. nonfarm payrolls and the unemployment rate for August are due out at 7:30 a.m. CDT Friday. Indices of world manufacturing activity will come in overnight and the U.S. index is due out at 9 a.m. NASS will report on Fats and Oils and Grain Crushings at 2 p.m. Weather As we begin meteorological fall, temperatures are increasing in the Plains and will continue to spread eastward through the weekend. A small disturbance in the Gulf of Mexico may provide some showers along the central coast, but most areas will stay dry today.
| Rural Advocate News | Thursday August 31, 2023 |
U.S. Ag Groups React Negatively to WOTUS Changes U.S. ag groups and elected officials all expressed disappointment with the revised Waters of the U.S. rule issued this week by the Environmental Protection Agency. “The agency failed to open the process to public comment, which would have been extremely valuable,” says National Corn Growers Association President Tom Haag (HAYG). American Soybean Association President Daryl Cates says, “These revisions are window dressing and leave in place much of the rule’s confusing and harmful foundations.” Corey Rosenbusch, president of The Fertilizer Institute, says they’re disappointed in the agency’s disregard for both the procedural need to invite public input for consideration and for May’s Supreme Court ruling. House Ag Committee Chair Glenn Thompson says EPA’s “sleight-of-hand” in circumventing the rulemaking process leaves the door open to agency abuse and uncertainty for U.S. agriculture. Darren Coppock (COP-uhck), president and CEO of the Ag Retailers Association, says this is a missed opportunity by the EPA. *********************************************************************************** Farm Futures Releases 2024 Planting Estimates Farmers are gearing up for the 2023 harvest season with an eye already on next year’s crop. A Farm Futures August survey finds growers are expecting to plant 93.1 million acres of corn in 2024, down one percent from this year’s total acreage. Shrinking revenue prospects amid relatively high costs will likely tighten profit margins for the 2024 crop, giving alternative crops more opportunity for acreage next spring. Soybeans are one crop that farmers expect to plant more of next year. Farmers in the survey expect a two percent increase in soybean acres next spring at a total of 85.4 million acres. Wheat acres are also expected to expand. Winter wheat acres are forecast to be five percent higher at 38.7 million acres, and spring wheat acres will rise eight percent to 52.7 million acres. If those predictions prove true, this would be the largest wheat acreage planted since 2015. *********************************************************************************** Senators Show Opposition to EATS Act In another show of opposition to the EATS Act, 30 senators sent a letter to Ag Committee leaders opposing a sweeping bill to nullify state agricultural laws called the EATS Act. The letter came a week after 172 House members signed a similar letter addressed to House Ag Committee leaders. Over 200 federal lawmakers spanning 35 states have publicly stated that neither the Ending Agricultural Trade Suppression Act nor anything similar should be a part of the upcoming farm bill. “It’s not one state that’s trying to foist its standards on the rest of the country,” says Sara Amundson, president of the Humane Society Legislative Fund. “It’s the NPPC that’s trying to force every state to accept the terms of any other state that chooses not to ensure humane safety standards for agricultural products within its borders.” Additionally, 577 veterinary professionals and 78 veterinary students signed letters opposing the EATS Act. *********************************************************************************** Grape Growers Have New Insurance Program Against Natural Hazards The USDA is expanding crop insurance options with a new grapevine insurance program. It will provide coverage for the loss of grafted vines caused by natural perils like frost or fire. The new program will also complement the grape crop insurance program that covers the fruit growing on the vine. “We strive to offer the strongest risk management resources for our nation’s agricultural producers,” says Marcia Bunger, administration of the Risk Management Agency. ‘Sometimes that’s by improving an already existing product or creating a new product like this one to fill a gap.” It’s especially critical when you realize that the loss of fruit can affect a grower for a season, but losing a grapevine is a much costlier situation in terms of the money and time needed to reestablish a productive vine. The program pays losses when the vine is dead or so badly damaged that it won’t recover within a year. *********************************************************************************** Farm Incomes Flatten in the Second Quarter The Minneapolis Federal Reserve Bank’s Second Quarter ag credit conditions survey shows that after several strong years of growth, that stalled in 2023. Compared to earlier this year, farm incomes dropped slightly from April through June. Spending on capital equipment also dropped while farm household purchases increased. More than a third of ag bankers surveyed in the Ninth District said farm incomes decreased in the second quarter of this year compared to 2022. Thirty-nine percent of the lenders report that borrower liquidity had dropped in the past three months compared to last year. The Fed also says despite the falling incomes, lenders haven’t seen a boost in loan demand and the rate of loan repayment remained strong. Loan renewals and extensions also remained steady. Farmland values rose, as did cash rents. The third-quarter outlook calls for further farm income declines, though the overall financial conditions are expected to stay relatively stable. *********************************************************************************** Unified Vision Driving Beef Checkoff Success The Federation of State Beef Councils has supported an effective and coordinated state and national Checkoff partnership since 1963. The National Cattlemen’s Beef Association, a contractor to the Beef Checkoff and state beef councils, continues setting a positive course for beef. Recent program successes include Nutrition Research which serves as the foundation for all Beef Checkoff-funded initiatives. Nutrition research proves beef has a role in a healthy and sustainable diet. The National Beef Quality Audit is the foundational research providing an understanding of what quality means to the various industry sectors. The 2022 NBQA results showed that the industry is more efficiently producing a high-quality product that consumers want. One of the industry’s top focus areas across the supply chain remains food safety. Cow-calf producers, stockers, and feedyards implement Beef Quality Assurance practices on their operations to produce the highest-quality cattle and the best possible eating experience for consumers.
| Rural Advocate News | Thursday August 31, 2023 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. weekly jobless claims, U.S. personal incomes and consumer spending in August, the index of personal consumption expenditures for July and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. Thursday. The U.S. Energy Department's report on natural gas storage is set for 9:30 a.m. Weather With Idalia continuing to move further offshore on Thursday morning, it will be a largely quiet day across most of the U.S. Some isolated showers will be possible across the north and near the Gulf of Mexico, but that should be it. Though still milder in the Eastern Corn Belt, temperatures are starting to rise in the Western Corn Belt, though extreme heat is still a day or two away.
| Rural Advocate News | Wednesday August 30, 2023 |
EPA and Army Amend “Waters of the United States” Rule The Environmental Protection Agency and the Army Corps of Engineers Tuesday announced a final rule amending the 2023 definition of “waters of the United States.” The final rule intends to conform with the recent Supreme Court decision in Sackett v. EPA. With this action, the Army Corps of Engineers will resume issuing all jurisdictional determinations. The rule will take effect immediately. In response, National Cattlemen’s Beef Association Chief Counsel Mary-Thomas Hart says, “Today’s revised WOTUS definition is an important step toward bringing the EPA more in line with the Supreme Court's ruling." AFBF President Zippy Duvall says the EPA chose to continue government overreach and revise only a small slice of the rule that the Supreme Court rejected. Duvall adds, "We're pleased the vague and confusing 'significant nexus' test has been eliminated as the Supreme Court dictated. But EPA has ignored other clear concerns raised by the Justices, 26 states, and farmers across the country about the rule's failure to respect private property rights and the Clean Water Act." *********************************************************************************** US Cattlemen’s Association Welcomes LIP Update The U.S. Cattlemen's Association applauds recent action by the Department of Agriculture to update the 2023 Livestock Indemnity Program payment rate. Late last week, USDA announced the payment rate for beef calves over 800 pounds will increase from $1244 per head to $1618, an increase of $374. The payment will apply retroactively to all qualifying losses since January 1, 2023. No action is necessary for retroactive payments, and producers will receive an additional payment if applicable. Payments will be queued up for current losses as early as next week. FSA acknowledged that some animals might have lost weight due to extreme weather conditions, and they are working on how to handle those cases. USCA President Justin Tupper says, "A loss in today's market has a significantly higher impact on a producer's bottom line, and the updated indemnity better reflects the value of that animal," while giving thanks to FSA for the update. *********************************************************************************** Study: US Soybean Industry Has $124 Billion Impact on the Economy A new study from the National Oilseed Processors Association and the United Soybean Board highlights how the soybean industry impacts the U.S. economy. This 33-page study analyzes the soybean value chain’s impact on the U.S. economy based on data from crop years 2019/20 to 2021/22. The data shows the total economic impact from the U.S. soybean sector averaged $124 billion, including $85.7 billion from soy production and $9.8 billion from soybean processing. The U.S. soy sector accounts for approximately 0.6 percent of the U.S. gross domestic product. There are more than 500,000 individuals involved in soy farm decision-making. This includes 223,000 paid, full-time equivalent jobs and an additional 62,000 family members, beyond growers, who reside on farms and are integral to soybean farming operations. The total wage impact of the sector averaged $10 billion. USB Chair and Missouri farmer Meagan Kaiser says, “It’s reaffirming to see that the U.S. soybean industry has such a tremendous impact on U.S. farmers and the economy overall.” *********************************************************************************** Pivot Bio names Chris Abbott CEO Pivot Bio Tuesday announced Chris Abbot as its Chief Executive Officer, effective immediately. As previously announced, Pivot Bio co-founder and current CEO Karsten Temme will become Chief Innovation Officer. Pivot Bio calls Abbot an industry leader and hands-on strategist who has focused his career on agriculture, water, sustainability, and technology. Pivot Bio Board Chairperson Roger Underwood says, "His commercial acumen, financial know-how, and strong relationships across the agriculture industry are exactly what the company needs at this critical juncture to further accelerate our substantial momentum." The company is also announcing another year of rapid growth, with revenue increasing over 60 percent in fiscal year 2023, surpassing $100 million for the first time. It was the fourth consecutive year of growth for revenue and acres. The company anticipates this momentum to continue in 2024. Pivot Bio also revealed plans to increase manufacturing and distribution across the country to support continued growth and expand customer service for growers. *********************************************************************************** Nearly Half of Potatoes Now go into Frozen Products New Data from USDA’s Economic Research Service shows the majority of potatoes in the United States are now sold in processed forms such as frozen, chipped, dehydrated, or canned. With the introduction of french fries as a key side dish in quick-service restaurants, the share of potatoes that go into frozen products has risen in each decade since 1979. As a result, almost half of all potatoes going into food in the United States are now used to create frozen products—most of which are french fries. Meanwhile, the share of potatoes used as fresh table potatoes has declined decade by decade. Per capita frozen potato availability during the pandemic-influenced 2019–21 period, up eight percent from a decade earlier. According to industry data and USDA research in the early 2000s, about 90 percent of frozen french fries move through various food service venues. Quick-service restaurants alone account for about two-thirds of french fry usage. *********************************************************************************** Forest Service Announces Landscape Scale Investments USDA’s Forest Service Tuesday announced it will invest $16.2 million to restore forests across tribal, state and private lands. The funded projects mark the first time the Forest Service will make Landscape Scale Restoration program grants directly available to federally recognized Tribes and Alaska Native Corporations to restore priority forest landscapes. The Forest Service selected 64 proposed projects for fiscal year 2023 to help Tribes, state agencies, local governments, and partners restore healthy, resilient, climate-adapted forests, including $3 million to restore landscapes on tribal lands. Forest Service Chief Randy Moore says, "These grants are critical for improving the nation's forests that provide a range of environmental, social, and economic benefits to the American people." The Landscape Scale Restoration program also supports the Forest Service's ten-year strategy to protect communities from catastrophic wildfires. The Forest Service reviewed project requests from federally recognized Tribes and Alaska Native Corporations, and selected 11 projects for funding.
| Rural Advocate News | Wednesday August 30, 2023 |
Wednesday Watch List Markets The U.S. Commerce Department will have an update of second-quarter U.S. GDP at 7:30 a.m., followed by the U.S. Energy Department's weekly energy inventories at 9:30 a.m. Traders continue to keep close watch over weather developments and any news regarding Ukraine. Visit DTN at this week's Farm Progress show in Decatur, Illinois, lot 360 on Third Street. Weather A rather quiet day is in store for most of the country outside of the far southeast. Hurricane Idalia, a Category 4 storm, will move into northern Florida this morning, across southeast Georgia and into the Atlantic later Wednesday and Wednesday night. Heavy rainfall, storm surge, and wind damage can be expected from northern Florida through the eastern Carolinas.
| Rural Advocate News | Tuesday August 29, 2023 |
Vilsack Making Clean Energy Announcement at Farm Progress Show Agriculture Secretary Tom Vilsack will attend the 2023 Farm Progress Show Wednesday to announce a major investment in clean energy for rural Americans. Wednesday morning, Vilsack will join Representative Nikki Budzinski, an Illinois Democrat, at a meeting of her Agriculture Advisory Council. There, Vilsack will hear firsthand from producers and officials about the state of agriculture in Illinois. Later, Secretary Vilsack will deliver remarks at the main Farm Progress stage. USDA says Vilsack will announce a significant investment to help producers and small businesses in rural communities invest in clean energy systems, improve energy efficiency, lower energy costs, and generate income. Vilsack is scheduled to make the announcement at noon central time, which will be livestreamed at farmprogress.com. Meanwhile, Vilsack announced $808 million to help rural cooperatives and utilities build and improve electric infrastructure Monday. The funding will also help provide clean drinking water and sanitary wastewater systems in rural areas. The announcement will benefit nearly 480,000 people in 36 states and two U.S. territories. *********************************************************************************** USDA Updates Livestock Disaster Payment Rate USDA’s Farm Service Agency updated the Livestock Indemnity Program payment rate recently. The update will support livestock producers in the Midwest who have lost cattle to the extreme heat and humidity experienced this summer. To help indemnify ranchers to reflect a trend towards higher cattle weights in feedlots, the 2023 Livestock Indemnity Program payment rate for beef calves over 800 pounds will increase from $1244 per head to $1618, an increase of $374. The program provides benefits to livestock owners and some contract growers for livestock deaths exceeding normal mortality from eligible adverse weather events, certain predation losses and reduced sales prices due to injury from an eligible loss. Indemnity payments are made at a rate of 75 percent of the prior year's average fair market value of the livestock. The updated payment rate is effective immediately and will be applied retroactively starting January 1, 2023, for all eligible causes of loss, including excessive heat, tornado, winter storms, and other qualifying adverse weather. *********************************************************************************** Farm Credit Farmer-Owned Cooperatives Merger Effective October 1 The merger of Farm Credit of New Mexico and American AgCredit Farm Credit cooperatives will be effective October 1, 2023. The merger will create one Farm Credit Association with enhanced marketplace stability, increased funding capacity, and better access to technology. The voting stockholders of Farm Credit of New Mexico re-voted for the proposed merger after a reconsideration process established by the Farm Credit Administration. American AgCredit CEO Curt Hudnutt says, "This merger makes us a better partner for our customers." Hudnutt will lead the merged American AgCredit, which will have more than 900 employees. The October 1, 2023, effective merger date is pending final Farm Credit Association approval. American AgCredit was chartered in 1916 as part of the nationwide Farm Credit System and is the nation's fourth-largest Farm Credit association. Farm Credit of New Mexico is the largest agricultural lender in New Mexico, a $2 billion cooperative specializing in agricultural lending and related services. *********************************************************************************** Dairy Checkoff Smoothie Program Expands The results of a checkoff-initiated smoothie program pilot showed increased milk and yogurt consumption and will be offered to more schools this fall. Research shows fruit smoothies are more popular than energy drinks, flavored water, juices and soft drinks with Gen Z consumers. Dairy Management Inc. partnered with Chartwells K12, a food management company that serves more than two million meals in 4,500 schools daily, for the pilot last year. The results were encouraging enough for the company to make the smoothie program available to its entire suite of schools this year. General Mills joined the effort by providing culinary support and training, and Hubert, a food service equipment manufacturer, offered blenders and other materials at a discounted rate. Chefs from Chartwells and General Mills collaborated to produce 30 recipes that contain at least one of the daily recommended servings of dairy and fruit. A survey conducted after the pilot showed a very positive response from students, school food service staff and administrators. *********************************************************************************** U.S. Obesity Rates Grew During First Year of Pandemic Regional obesity rates grew further apart during the COVID-19 pandemic, according to USDA’s Economic Research Service. From 2019 to March 2020, adult obesity rates ranged from a low of 36.7 percent in the West to the highest rate at 43.1 percent in the South, a 6.4-percentage point difference. The regional differences expanded to 7.2 percentage points during the first year of the pandemic, from a low of 37.4 percent in the Northeast to a high of 44.6 percent in the Midwest. The West had the lowest adult obesity rate before the pandemic but experienced the largest increase of any region during the first year, a 2.8-percentage point increase. The obesity rate increase in the West was nearly twice that in the South, which had the highest regional obesity rate before the pandemic. The Midwest had the second-highest rate before the pandemic, but increased nearly twice as much as the South, emerging as the region with the highest obesity rate as of March 2021. *********************************************************************************** Gas Lower, Diesel Higher, Ahead of Labor Day Weekend For the first time in over a month, the nation's average price of gasoline declined, falling 4.0 cents from a week ago to $3.78 per gallon. The national average is up 5.8 cents from a month ago but 3.5 cents per gallon lower than a year ago. The national average diesel price rose 3.3 cents in the last week to $4.33 per gallon, 70.7 cents lower than one year ago. However, GasBuddy's Patrick De Haan says, "The drop may be short-lived, as one of the nation's largest refineries partially shut last week after a fire at a storage tank, and as we see more tropical activity that could lead to further disruption." After rallying for seven straight weeks, oil prices have lost some of their luster, much of which can be blamed on continued weakness in China’s economy, and refinery issues in the U.S. limiting how much crude oil refineries will be able to process.
| Rural Advocate News | Tuesday August 29, 2023 |
Tuesday Watch List Markets Statistics Canada will have crop estimates out at 8 a.m. CDT Tuesday, followed by an index of U.S. consumer confidence at 9:00 a.m. CDT. DTN Ag Meteorologist John Baranick and Lead Analyst Todd Hultman discuss weather and markets in the DTN building, Lot 360 at the Farm Progress Show in Decatur, Illinois, Tuesday through Thursday. Weather A small front moving through the Midwest may produce a few showers on Tuesday and a few more may be found in the High Plains, but it should be a rather quiet day. The Southeast will be more active with a front there as the region waits for Hurricane Idalia to build over the next 24 hours prior to landfall in the Big Bend of Florida on Wednesday.
| Rural Advocate News | Monday August 28, 2023 |
Top 5 Things to Watch - New Equipment, Land Rental Rates Out This Week OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Aug. 27. 1. From the Show: We'll have a steady stream of news on the latest equipment, seed, chemicals and other inputs from the Farm Progress Show in Decatur, Illinois. You can also hear the latest outlooks and chat with DTN journalists and experts in our building at Lot 360 on the show grounds. DTN's Ag Meteorologist John Baranick and Lead Analyst Todd Hultman will give their thoughts on the weather and markets at 10 a.m. and 2 p.m. CDT Tuesday and Wednesday, and at 10 a.m. on Thursday. We'll also have experts talk about the new Farmers for Soil Health signups which can earn you up to $50 per acre for cover crops and other soil health practices. DTN is a partner in this USDA-funded project. 2. Farm rental rates: USDA released its latest farmland cash rental rates by county; look for our story that digs into the data to spot the latest land trends. 3. Cooler weather, until it's not: The weekend's cold front, which knocked 15-20 degrees off of some areas of the country, won't bring a lot of rain to help crop recovery. Best rainfall chances are in the eastern Great Lakes states and the Central Plains, the latter thanks to remnants of Tropical Storm Harold. The break from the heat will last about a week, with models showing above-normal temperatures east of the Rockies as the calendar turns to September. 4. Crop harvest begins: Some of the first corn and soybean plots are beginning to come out. Watch for news on some of the early results. 5. Weekly business reports: (Note: all times are CDT) Monday will see USDA's weekly export inspections at 10 a.m. and the Crop Progress report at 3 p.m. On Tuesday, we'll have the U.S. consumer confidence index numbers at 9 a.m. On Wednesday, the second-quarter U.S. Gross Domestic Product numbers hit at 7:30 a.m., followed by the U.S. Energy Department's weekly energy inventories at 9:30 a.m. Then Thursday is a busy one, with USDA's weekly export sales report, U.S. weekly jobless claims, U.S. personal incomes and consumer spending in August, the index of personal consumption expenditures for July and an update of the U.S. Drought Monitor all due at 7:30 a.m. The U.S. Energy Department's report on natural gas storage is at 9:30 a.m. That Thursday is also the last day of the 2022-23 crop year for the corn and soybean complexes. On Friday, we'll see U.S. nonfarm payrolls and the unemployment rate for August, due at 7:30 a.m. World manufacturing activity indices come in overnight and the U.S. index is due at 9 a.m. The latest Fats and Oils and Grain Crushings report from NASS is at 2 p.m.
| Rural Advocate News | Monday August 28, 2023 |
Pro Farmer Releases National Crop Yield Estimates The Pro Farmer Crop Tour recently wrapped up its 2023 expedition after traveling through corn and soybean fields in multiple states. After predicting yield estimates for each state, Pro Farmer puts all the numbers together to come up with its national harvest predictions for corn and soybeans. Pro Farmer predicts a national corn yield of 14.96 billion bushels and an average yield of 172 bushels per acre. The Pro Farmer national soybean yield prediction is 4.11 billion bushels and an average yield of 49.7 bushels an acre. The national estimates reflect Pro Farmer’s views on production and yields. They consider the data gathered and weather conditions during the Crop Tour, crop maturity, historical differences in Tour data versus USDA’s final yields, and areas outside those sampled on the tour. Based on August FSA-certified acreage data, Pro Farmer increased harvested corn acres by 675,000 from August. They didn’t change the soybean harvested acres. ********************************************************************************** RFA Blasts Panel Report on Ethanol and Emissions The Renewable Fuels Association sent a letter to Environmental Protection Agency Administrator Michael Regan blasting the agency’s Science Advisory Board. The RFA accuses the panel of making misleading and unfounded claims about corn ethanol’s impact on greenhouse gas emissions. In draft commentary sent to Regan, the board attempted to downplay the climate benefits of corn ethanol and recommended that the EPA conduct more extensive research on ethanol’s carbon footprint. “The overwhelming evidence of scientific analysis and data clearly show that corn starch ethanol significantly reduces GHG emissions relative to the gasoline it replaces,” says RFA President and CEO Geoff Cooper. “We adamantly disagree with the SAB’s statement saying the ‘best available science’ suggests there are minimal, or no climate benefits related to substituting corn ethanol for gasoline.” Cooper also points out that no scientists with biofuels industry experience were invited to participate in the working group when putting the board together. *********************************************************************************** McConnell: Farm Bill Will Be Late Senate Majority Leader Mitch McConnell says Congress will deliver a farm bill, but not likely in September. Roll Call says McConnell told the Kentucky Farm Bureau that Congress is running out of working days on the legislative calendar before the current law expires on September 30. McConnell is one of the highest-ranking members of Congress to admit the timeline for a new farm bill is shifting past September. When asked about reauthorizing the five-year farm bill, McConnell says, “We’ll figure it out.” While the current bill runs out on September 30, it looks like the new deadline for farm legislation will be December 31. On January 1, some American farm policies will revert to 1940s-era controls on production and costly price supports. If the farm bill does get pushed to 2024, a one-year extension becomes likely as it’s a presidential election year, and both parties will battle for Congressional control. *********************************************************************************** Weekly Drought Monitor Shows Spotty Improvement The weekly U.S. Drought Monitor saw improvements in parts of California and Nevada because of the impacts of Tropical Storm Hilary. The storm brought record-breaking rainfall accumulations and incidents of flash flooding and mudslides. In the Midwest, light precipitation accumulations fell in northern Wisconsin, the Upper Peninsula of Michigan, and northern Michigan. Drought conditions worsened in areas of Minnesota, Wisconsin, and Illinois, where both short and long-term precipitation deficits continue. Areas of Moderate Drought (D1) and Severe Drought (D2) were removed in Michigan. No changes were made this week in the Plains states, while some minor improvements took place in northwest Wyoming, and some conditions worsened in South Central Colorado. While some improvement took place in areas of Kansas and Nebraska, long-term dry signals remain in place through most of the region. In the South, drought-related conditions continued deteriorating as the hot and dry pattern continued across most of the region. *********************************************************************************** Record-Low Number of Federal Wage and Hour Investigations of Farms The Economic Policy Institute says employers routinely underpay farm workers, among other workplace violations, but federal investigations into problems like these have dropped to an all-time low. The institute says that’s likely because of funding and staffing constraints. A new report says Congress must increase funding for labor standards enforcement to protect farmworkers. Since 2000, the Labor Department’s Wage and Hour Division has seen investigations drop by more than 60 percent. The division only has 810 investigators to protect all 165 million workers in the U.S. That means fewer than one percent of farm employers get investigated every year. From 2000 to 2022, H-2A visa program violations accounted for almost half of back wages and civil money penalties owed by farm employers. The EPI wants Congress to stop hobbling the Department of Labor and provide resources for strong investment in farm worker protections. They also want stiffer fines imposed on chronic offenders. *********************************************************************************** Applications Open for USDA Trade Mission to Angola USDA Deputy Secretary Xochitl (so-CHEEL) Torres Small will lead the first-ever agribusiness trade mission to Angola from November 28-December 1. The Foreign Agricultural Service is accepting applications from U.S. exporters who want to take part. “When it comes to trade opportunity, Sub-Saharan Africa is both promising and often overlooked,” says Torres Small. “The USDA mission to Angola presents an incredible prospect for U.S. food and agricultural exporters to expand and explore new business opportunities.” Angola is one of the largest markets in Africa, and imports make up more than half of its food market. She says that makes it a perfect location for U.S. exporters to introduce more American-made products to African consumers. Angola has a population of almost 36 million people, many of whom are middle and high-income consumers, which means they’re looking for high-quality imported products. In 2022, U.S. food and ag exports to Angola totaled $236.8 million
| Rural Advocate News | Monday August 28, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest forecasts for signs of rain and any new events regarding Ukraine. Monday will have its usual USDA reports of weekly export inspections at 10 a.m. CDT and Crop Progress at 3 p.m. Weather A front that crept through the country over the weekend has found itself somewhat stalled across the Southeast on Monday. Scattered showers are forecast there. Another front is dropping south out of Canada and will move through the Midwest Monday night into Tuesday with a few limited showers and a reinforcing snap of cooler air again. Eyes are on the tropics as Tropical Storm Idalia makes its way north into the Gulf of Mexico Monday night as well.
| Rural Advocate News | Friday August 25, 2023 |
Drought Threatens Shipping on the Panama Canal The Panama Canal is responsible for facilitating trade as 40 percent of worldwide cargo ship traffic uses it to move between the Atlantic and Pacific Oceans. Marine Insight says almost two-thirds of the canal’s traffic load is either heading to or leaving the United States. The group managing the Canal restricted the number of ships passing through each day, as well as the amount of cargo they could carry. They made the decision because of the decreasing water supply caused by the ongoing drought due to El Niño conditions. That will mean fewer than 34 ships can move through the canal in both directions every day. That’s compared to the 34 to 42 it can handle at peak capacity. The new restrictions are in place until Monday, August 21, and could force companies to find alternative routes. The canal system depends on lakes whose levels are now close to their minimum points. *********************************************************************************** Dairy Checkoff Publishes 2022 Annual Report Dairy Management, Inc., the planning and management organization running the national dairy checkoff program for America’s dairy farmers and importers posted its 2022 annual report. The report provides checkoff funders and other members of the dairy community with an audited financial report and highlights from 2022 focused on strategies and programs. Those include accelerating dairy sales growth and building trust in dairy foods and dairy farming with youth and other important consumer audiences. “Farmers and importers seek transparency in their checkoff strategies, and the 2022 annual report is a great way to deliver on those expectations,” says Marilyn Hershey, a Pennsylvania farmer and DMI chair. “Our checkoff team works daily to fulfill its goal of building sales and trust in dairy, and this report offers a comprehensive overview of how that plan delivered the results.” More information on the checkoff program’s budget summary and audited financial statements are available at usdairy.com. *********************************************************************************** Breakthrough in Fight Against African Swine Fever Scientists have discovered a gene in pig DNA that’s needed by the deadly African Swine Fever virus to cause an infection. National Hog Farmer says this discovery could be a springboard into the development of pigs resistant to ASF, a swift-acting and severe condition that causes widespread illness and death, leading to steep financial losses for the world’s pork industry. The disease has killed more than 200 million pigs worldwide and is a major issue across Asia. It also has the potential to cause outbreaks in Europe and America. A team of researchers found that the gene is involved in a pig’s immune system and essential for replication of the ASF virus. This finding increases the possibility of changing the gene through gene editing to raise pigs that are resistant to the disease. It could improve how farmers manage the infection for which no vaccine or treatment is currently available. *********************************************************************************** NCGA President Testifies on the Value of Atrazine National Corn Growers Association President Tom Haag (HAYG) testified Thursday before an Environmental Protection Agency panel on the importance of atrazine to corn farmers. He says NCGA commends the scientific and risk-based analysis and conclusions of the EPA in this reevaluation of the 11 atrazine studies identified by the 2012 Scientific Advisory Panel calling for further review to assess the effects on aquatic plant communities. “NCGA points to conclusions in the white paper that continue to affirm scientific evidence which supports the safe use of atrazine while protecting the vital aquatic plant communities and their related ecosystems,” he says. Haag also points out that management of weeds and their resistance to herbicides is a constant challenge for corn farmers. “Access to atrazine puts an important tool in the hands of U.S. corn growers to effectively adopt conservation practices while managing destructive weeds and delivering an abundant and quality crop,” he says. *********************************************************************************** Potato Exports Break Value and Volume Records America’s potato exports reached record value and volume between July 2022 and June 2023. Export values rose 19 percent to $2.2 billion, and export volume rose almost four percent to 3.3 million metric tons. Those export values increased across all categories, including frozen, fresh, dehydrated, seed, and chips. Double-digit increases in value took place in all categories but seed potatoes. The increase in volume was led by dehydrated potatoes and chips, which rose 25 and 11 percent, respectively. During the year, Mexico became America’s largest potato export market for the first time, followed by Canada and Japan. The entire Mexican market opened to fresh U.S. potato exports in May 2022. The value of exported dehydrated potatoes took the biggest jump, rising 24 percent to reach $257 million. The top destinations for the category were Canada, Japan, and Mexico. Frozen potato exports rose 20 percent in value despite a decrease in volume. *********************************************************************************** NCGA Relaunches its Photo Contest Fields-of-Corn.com, the official photo contest of the National Corn Growers Association is set to relaunch on September 1. Along with a new look that’s built to showcase the rich history of visual storytelling comes a more robust interface for entry. The reboot is just in time for the tenth annual photo contest. “The Fields-of-Corn.com site will house voting for the first time with higher reliability than we had through social media in the past,” says Graphic Communications Manager Beth Musgrove. The contest is open to everyone, and NCGA invites photographers to help tell the story of farming field corn in America. Through this contest, NCGA seeks high-resolution photos to document the rich history of growing corn, captured from seed to harvest as well as the tenacious and hard-working families that grow it. Entries will be accepted through the end of November. Photographers will compete for 26 awards over eight categories.
| Rural Advocate News | Friday August 25, 2023 |
Friday Watch List Markets University of Michigan's index of consumer sentiment is due out at 9 a.m. Federal Reserve Chairman Jerome Powell is expected to speak in Jackson Hole, Wyo., Friday. Knowing energy prices have climbed higher, he will likely mention another rate hike is on the way. Traders continue to pay attention to the latest weather forecasts and any news regarding Ukraine. Weather A pair of fronts across the Corn Belt will be drifting southward on Friday. The extreme heat has ended over northern areas, though it remains hot. The fronts will produce some isolated showers and thunderstorms for the next few days as they move into the South and Southeast. Temperatures will fall back down toward normal after the fronts pass through.
| Rural Advocate News | Thursday August 24, 2023 |
FMMO Hearing Heralds Farmer-Led Progress for Dairy Wednesday marked the first day of a once-in-a-generation hearing on federal milk pricing. USDA’s Federal Milk Marketing Order hearing is underway as dairy producers make their case for changes to the pricing program. National Milk Producers Federation President and CEO Jim Mulhern says, “Thanks to the tireless efforts of dairy farmers and their cooperatives, this industry is poised for progress as Federal Milk Marketing Order modernization is now in sight.” The industry expects five to seven weeks of testimony and discussion on proposals to modernize the FMMO system. Following USDA’s initial presentations, the hearing will then launch into discussions of specific issues placed within the scope of the hearing. After the hearing’s conclusion, entities involved in the hearing then have a period of time to respond to the testimony, followed by a USDA draft decision, then more discussion, and ultimately a vote among dairy farmers on a final proposal, likely in the second half of 2024. *********************************************************************************** USDA Announces Funding to Support U.S. Specialty Crop Producers USDA's Agricultural Marketing Service Wednesday announced $72.9 million in grants awarded to 55 states and territories through the Specialty Crop Block Grant Program. The grant program provides funding to enhance the competitiveness of specialty crops and support specialty crop growers through marketing, education, and research. Fiscal year 2023 funding is awarded to the departments of agriculture in the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Islands. States are encouraged to sub-award funding to projects that address the needs of U.S. producers of fruits, vegetables, tree nuts, dried fruits, horticulture, and nursery crops. Funded projects include investing in food safety, specialty crop research, including research to focus on conservation and environmental outcomes, developing new and improved seed varieties and specialty crops, and pest and disease control. This year's awards mark over $1 billion invested in nearly 12,000 projects supporting the U.S. specialty crop industry. *********************************************************************************** Growth Energy Supports EPA Refinery Exemption Decisions Growth Energy has filed a motion to intervene in the U.S. Court of Appeals for the Eleventh Circuit, supporting the Environmental Protection Agency’s refinery exemptions decision. The motion is in response to the Hunt Refining Company's lawsuit seeking to reverse the EPA decision to reject unwarranted Small Refinery Exemptions. The motion is just the latest in a series of legal efforts Growth Energy has led to protect the integrity of the Renewable Fuel Standard, which requires oil refiners to blend a specific amount of biofuels into their fuel each year. Growth Energy CEO Emily Skor says, " EPA made the right call by following the data, which show there is no economic justification for exempting another oil company from its obligations under the RFS." Skor adds, "Past abuse of SREs destroyed demand for billions of gallons of biofuels, undermining our ability to hold down prices at the pump with clean, American renewable fuel.” *********************************************************************************** USDA Lowers Rice Trade Forecasts for 2023 and 2024 Global rice trade forecasts for both calendar year 2023 and 2024 are sharply lowered this month. USDA lowered the forecast in response to India's July 20 immediate ban on further sales of select rice varieties, resulting in urgent buying by some importers and rapid Asian price increases. The 2024 global export forecast is lowered 3.4 million tons to 52.9 million, with exports from India lowered 4.0 million tons to 19.0 million. Increased export forecasts for Brazil, Pakistan, Russia, and Vietnam partially offset the 2024 export reduction for India. For 2023, global exports are reduced 1.9 million tons to 53.8 million, with India's export forecast reduced 2.0 million tons to 20.5 million. Import forecasts are lowered for several major importers in Asia and Sub-Saharan Africa for both 2023 and 2024. The 2023/24 production forecast in the U.S. rice market is raised 1 percent to 203.6 million hundredweight, based on a higher yield of 7,700 pounds per acre. *********************************************************************************** Emergency Allotments Central to SNAP Spending Growth During Pandemic USDA’s Economic Research Service says emergency allotments were central to Supplemental Nutrition Assistance Program spending growth during the pandemic. SNAP participation and inflation-adjusted spending grew each year from fiscal year 2007–13 following the Great Recession and from FY 2019–21 following the COVID-19 pandemic. Average monthly participation increased faster, for longer, and by a greater amount following the Great Recession than during the pandemic, peaking at 47.6 million participants in FY 2013. Emergency allotments were issued as monthly supplements in response to the pandemic, bringing all recipients’ benefits to the maximum allowed each month beginning in 2020. In 2021, emergency allotments and other disaster supplements accounted for $39.2 billion, almost a third of total spending. Excluding spending on emergency allotments and other disaster supplements, total spending was only $81.6 billion in FY 2021, about $15 billion less than FY 2013 spending, adjusting for inflation. Emergency allotments ended in all states in early 2023. *********************************************************************************** USDA Publishes Child Nutrition Program Integrity Final Rule USDA Wednesday published a final rule on program integrity to ensure that child nutrition programs are properly operated and managed to protect federal funds and taxpayer dollars. The final rule impacts the National School Lunch Program, School Breakfast Program, Special Milk Program, Summer Food Service Program, and Child and Adult Care Food Program. The final rule introduces targeted flexibilities in the National School Lunch and School Breakfast Programs that streamline monitoring requirements and lower administrative burdens for states. The rule also finalizes provisions in the Child and Adult Care Food Program, that have already been in place. The provisions streamline processes, provide additional resources, and increase accountability. The rule also allows for more efficient use of state agency resources by ensuring that organizations at risk of serious management issues receive more frequent oversight, and that financial transactions are appropriately reviewed. USDA improved the ability to address the rare instances of severe or repeated violations of program requirements in the child nutrition programs.
| Rural Advocate News | Thursday August 24, 2023 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. weekly jobless claims, U.S. durable goods orders and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. Thursday. The U.S. Energy Department's report on natural gas storage follows at 9:30 a.m. and traders remain attentive to the latest weather forecasts. Weather An upper-level dome of high pressure continues to cause extreme heat across the middle of the country for Thursday. The edges of the heat dome are becoming more active, however. We are seeing a slight shift southward of the front across its northern edge, though it will be a system moving through the Canadian Prairies that pushes it southward tonight and tomorrow. On the northeastern edge, heavy rainfall has developed over Ohio this morning. While that may peter out this morning, it will be an area for redevelopment later today
| Rural Advocate News | Wednesday August 23, 2023 |
USDA Announces Forest Management Funding Agriculture Secretary Tom Vilsack Tuesday announced $150 million to help underserved and small acreage forest landowners connect to emerging voluntary climate markets. The markets can provide economic opportunities for landowners and incentivize improved forest health and management. The Forest Service Funding comes from the Inflation Reduction Act. Vilsack announced the funding opportunity at the Sustainable Forestry and African American Land Retention Conference. Forests are powerful tools in the fight against climate change, according to USDA, and emerging voluntary private-sector markets are now creating economic incentives to keep forests healthy and productive. However, high acreage requirements and prohibitive start-up costs have caused many small-acreage and underserved private forest owners to be left behind. Without financial incentives, these landowners may not have the resources to manage forests for long-term health and resilience. Without proper management, forests are more susceptible to wildfire, loss of habitat, and reduced water quality. The Forest Service anticipates future funding opportunities, including one specifically targeted to engage tribal nations. *********************************************************************************** Farmers for Free Trade Calls on Presidential Candidates to Prioritize Trade Farmers for Free Trade this week implored all 2024 presidential candidates to prioritize new market access trade agreements to strengthen U.S. agriculture and decrease reliance on China. The organization also called on the presidential candidates to hold China accountable in a responsible manner that does not endanger U.S. food and agriculture's largest export market or threaten American farmers with new retaliatory tariffs. In a letter, the organization says, "The U.S. needs to again take the lead in negotiating new FTAs with other countries and work to strengthen and reform the rules-based multilateral trading system." Such agreements could protect American workers and the environment, help contain China's growing geopolitical influence, and open new export markets for our farmers by meaningfully reducing and eliminating tariffs and non-tariff trade barriers. The letter, which comes shortly before the first presidential debate of the 2024 election cycle, was sent to all presidential campaigns. *********************************************************************************** Youth Employment Trends in the Midwest New research shows labor shortages present persistent challenges for regional economies but can also create opportunities for young workers. The research, published Tuesday on the University of Illinois farmdocDAILY website, shows youth employment can also help employers fill the part-time, low-wage, and often seasonal positions. Generation Z is relatively smaller than the millennial generation. As a result, fewer young people are working because there are simply fewer young people. However, every Midwestern state had a higher labor force participation rate among workers aged 16 to 19 than the nation. The highest levels of youth employment occur in relatively small, rural counties. Additionally, the food service and accommodation industry and the retail sector employ the most young workers. The research concludes that connecting young people to beneficial, rather than exploitative, work opportunities is a critical step in building and sustaining the local labor force, but it also directs them toward opportunities that might lead to a career. *********************************************************************************** New Grants to Support Wild Horse Initiatives New grants from the Bureau of Land Management focus on managing and protecting wild horses and burros on public lands. The federal government awarded grants to six organizations and universities in Colorado, Oregon and Utah. The BLM manages and protects free-roaming wild horses and burros on public lands as required by the 1971 Wild Free-Roaming Horses and Burros Act. Most herds on public lands are in arid environments and lack natural predators that can control herd growth. The grants are part of efforts to work with community partners on projects that will benefit wild horses and burros and their habitat, including increasing the use of fertility control to slow herd growth. The latest population estimates found more than 82,000 wild horses and burros on BLM-managed public lands. Though down from a record high in 2020, this population is more than three times the level that is healthy for the herds and their habitat. *********************************************************************************** Cotton Board Elects New Officers The Cotton Board recently elected a new slate of officers to serve one-year terms. During its Business Session, The Cotton Board elected Mark Nichols, a cotton producer from Altus, Oklahoma, to serve as Chairman of the Board. Nichols is the President of Jess Mark Nichols Farms, Inc. and President of Hess Farms, Inc., a fourth-generation farm he has managed since 1980. He farms with his brother-in-law, son, and son-in-law, growing irrigated cotton, wheat, and milo. Nichols commented on his new role, " During the upcoming year, we will continue to work closely with Cotton Incorporated to ensure our industry is moving forward and leading the way to increase the demand for and profitability of cotton." Other elected officers are Akiko Inui (ah-kee-koh in-you) of New York as Vice Chairman, Matt Famer of Texas as Secretary, and Rusty Darby of South Carolina as Treasurer. The Cotton Board is funded by the cotton checkoff, with efforts managed by Cotton Incorporated. *********************************************************************************** California Continues to Lead U.S. Peach Harvest While Georgia is on many consumers' minds when it comes to fresh, juicy peaches, California is by far the largest peach-producing state in the United States. USDA’s Economic Research Service reports that last year, California's harvest yielded 475,000 tons of fruit, with South Carolina a distant second at 67,400 tons, and Georgia in third place with production at 24,800 tons. California has been the leading producer of freestone peaches for the fresh market and clingstone peaches for processing. However, the state's peach production has been trending lower for almost two decades, contributing to an overall drop in U.S. peach production. Total production in the United States in 2022 was estimated at 625,680 tons, eight percent smaller than the crop in 2019. In 2022, California’s peach harvest was about five percent smaller than in 2019 and nearly 27 percent lower than ten years earlier. USDA forecasts 2023 peach production 13 percent lower than last year.
| Rural Advocate News | Wednesday August 23, 2023 |
Wednesday Watch List Markets A report on U.S. new home sales in July is set for 9:00 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly energy inventories at 9:30 a.m. USDA's monthly cold storage report is due out at 2 p.m. Traders will continue to keep close watch over the latest weather forecasts and news regarding Ukraine. Weather A dome of heat continues to bake the middle of the country with records likely to be broken again today. The remnants of Tropical Storm Harold will continue through the Rio Grande Valley and into the Four Corners area today and across the north, a front may be active with showers, especially for the eastern Great Lakes. Otherwise, the heat comes with complete dryness as soil moisture continues to rapidly evaporate.
| Rural Advocate News | Tuesday August 22, 2023 |
USDA Announces Nearly $700 Million in Rural Broadband Funding Agriculture Secretary Tom Vilsack Monday announced nearly $700 million in grants and loans as part of USDA’s ReConect Program. The funding will connect thousands of rural residents, farmers and business owners in 22 states to reliable, affordable high-speed internet. Vilsack says, “Keeping the people of rural America connected with reliable, high-speed internet brings new and innovative ideas to the rest of our country and creates good-paying jobs along the way.” The high-speed internet investments are part of the fourth funding round of the ReConnect Program. Many residents and businesses in rural areas would not have high-speed internet service without the ReConnect Program, as the program is a key part of the Administration’s Internet for All initiative to connect everyone in America to high-speed internet by 2030. Funding for this round of grants comes from the Bipartisan Infrastructure Law, and includes $667 million of funded projects. A full list of funded projects is available on USDA's Rural Development website. *********************************************************************************** Farmland Partners: Strong Market Still Adding Value Farmland values across the country climbed this year and hit record levels despite challenges like rising interest rates and extreme weather, according to data from the federal government. The Department of Agriculture found that U.S. farm real estate values, which includes all land and buildings on farms, increased 7.4 percent over the past year. Cropland values have grown 8.1 percent since 2022. Nationwide value of farm real estate and cropland also increased sharply from 2021 to 2022, 12.4 percent and 14.3 percent, respectively. Additional reports from the Federal Reserve Bank of Chicago, and the Federal Reserve Bank of Kansas City, confirm the USDA data. Farmland Partners Inc. President and CEO Luca Fabbri says, "These studies and similar reports coming from farm country show that the farmland market is still strong and adding value." Farmland Partners is an internally managed real estate that owns and/or manages nearly 186,000 acres in 20 states. *********************************************************************************** USTR Tai Visiting Indonesia, India U.S. Trade Representative Katherine Tai met with Indonesia's Minister of Trade Monday. Tai and Zulkifli Hasan discussed progress through the U.S.-ASEAN Trade and Investment Framework Arrangement Work Plan, including issues related to trade facilitation, standards and the digital economy. Ambassador Tai and Minister Hasan also discussed progress and updates on the Indo-Pacific Economic Framework. The ministers also discussed the U.S.-Indonesia Trade and Investment Framework Agreement. Ambassador Tai noted that the United States views this TIFA as an important mechanism for discussing bilateral trade issues. Later this week, Tai will travel to India for the G20 Trade & Investment Ministers' Meeting. Tai will also meet with business leaders and hold bilateral meetings with government officials. The meetings follow last week’s effort with Taiwan, as USR and Taiwan held an in-person negotiating round for the U.S.-Taiwan Initiative on 21st Century Trade in Washington, D.C. *********************************************************************************** Healthy Watersheds, Healthy Communities Act Introduced Lawmakers Monday introduced the Healthy Watersheds, Healthy Communities Act. Led by Colorado Democrat Micheal Benet, a bipartisan group of Senators introduced the bill that would improve the Natural Resources Conservation Service’s Watershed and Flood Prevention Operations program. The bipartisan legislation would streamline the planning and administration processes to enable more watershed-wide projects, shift decision-making to local NRCS staff, expand program eligibility, and allow federal funding to count toward state and local match requirements. The bill also prioritizes projects with multiple conservation and public benefits and makes drought resilience an explicit purpose of the program. With more frequent and severe drought and flooding, farmers and ranchers are using the program to mitigate the effects of these natural disasters through watershed improvement projects. However, the lawmakers say as demand for this program grows, inadequate funding and burdensome red tape keeps applicants from accessing its full benefits. *********************************************************************************** USDA Proposal to Strengthen Horse Protection Act USDA's Animal and Plant Health Inspection Service seeks public input on a proposed rule to strengthen Horse Protection Act requirements. Announced last week, the proposed changes aim to eliminate horse soring, a cruel and inhumane practice that gives horse owners and trainers an unfair advantage in walking horse competitions. Walking horses are known for possessing a naturally high gait, but to be more successful in competitions, some owners and trainers use improper training methods to exaggerate a horse's gait. The methods may cause the horse to suffer from physical pain, distress, inflammation, or lameness while walking and moving. USDA's Jenny Lester-Moffitt says, "By strengthening the HPA regulations, we can all work to eliminate soring, which will improve the welfare of horses competing in these shows and level the competitive playing field.” You can submit comments by searching for the proposal at regulations.gov. APHIS will consider all comments received on or before October 20, 2023. *********************************************************************************** Registration Open for CattleCon24 Registration and housing are now open for CattleCon24, the cattle industry's largest event of the year. It's "Onward to Orlando," where cattle producers from across the country will gather, January 31-February 2, for business meetings, educational sessions, engaging speakers and family fun. Kristin Torres of the National Cattlemen's Beef Association says, "By opening registration early this year, we hope to give producers the ability to plan a family vacation in conjunction with CattleCon." Attendees can look forward to a variety of educational opportunities, including the CattleFax Outlook Seminar, weather and industry updates, grazing management workshop, sessions featuring guest speakers on the NCBA Trade Show floor and the 31st annual Cattlemen's College. Cattlemen's College is being reimagined in 2024 with classroom sessions and hands-on demonstrations throughout all three days of CattleCon. Also new are trade show cooking demos and a beef culinary tour. A variety of ticket packages are available, as well as payment plan options. Visit convention.ncba.org to learn more.
| Rural Advocate News | Tuesday August 22, 2023 |
Tuesday Watch List Markets A report on U.S. existing home sales for July is set for 9:90 a.m. CDT Tuesday, the only significant report of the day. Traders will continue to watch over the latest weather developments and keep track of news regarding Ukraine. Weather The most intense section of the heat wave starts on Tuesday with widespread 90s and triple-digit temperatures across the middle of the country, which will be in place through Thursday. The outer edges of the heat will continue to be active with showers in the west and far north and across Texas with Tropical Storm Harold moving through.
| Rural Advocate News | Monday August 21, 2023 |
Farmland Values Resilient as Economy Moderates Strength in farm real estate values persisted in the second quarter despite some moderation in the farm economy and higher interest rates. The Kansas City Federal Reserve says growth in farmland values eased from the surge in recent years but remained strong through the first half of 2023. Broad strength in farm finances during recent years throughout the district continued supporting agricultural credit conditions. Margins for many commodities have thinned in recent months alongside elevated production costs and softening prices. Farm loan performance remained historically strong through early 2023, and liquidity levels at many agricultural banks were well-positioned to meet growth in lending demand that could be on the horizon. Farm incomes moderated in all the participating Districts during the second quarter. Following almost two years of considerable strength, improvement in farm income waned according to Federal Reserve Surveys of Ag Credit Conditions. Loan demand remained subdued despite moderating incomes. *********************************************************************************** Ag Groups Support USTR in Mexican Trade Dispute The U.S. Trade Representative requested a panel formation under the U.S.-Mexico-Canada Agreement over Mexico’s decision to ban imports of biotech corn used in human consumption. “Mexico’s decree runs counter to scientific findings and is in direct violation of USMCA, which negatively impacts American corn growers,” says NCGA President Tom Haag (HAYG). U.S. Grains Council President and CEO Ryan LeGrand says the U.S. and Mexico have had a long and productive relationship. “It’s our number one market for U.S. corn, and we support this action because it will likely be the quickest way to make sure the positive relationship continues in the future.” Farm Bureau President Zippy Duvall says his group appreciates U.S. Trade Rep Katherine Tai for her continued commitment to holding Mexico to its agreements under USMCA. “America’s farmers are upholding their obligations by meeting demand while achieving important sustainability goals,” says Duvall. “Mexico must do the same thing.” *********************************************************************************** Most Cow-Calf Operations Remain Small Most cow-calf operations in the U.S. remain relatively small and have fewer than 50 cows. USDA says at the other end of the spectrum, a few very large operations with more than 1,000 cows can be found. USDA data from the National Agricultural Statistics Service Ag Census indicates that between 1997 and 2017, most cow-calf operations remained small. In 2017, 54 percent of farms with beef cows had fewer than 20 animals, down slightly from 1997. However, during the two decades, the overall number of cow-calf operations in the U.S. dropped by 19 percent, while the average herd size on the remaining operations grew. These changes in farm numbers and herd sizes, while notable, haven’t been as significant as industry shifts in hog and dairy production. The combination of relatively lower cow-calf-specific startup costs and pasture as a primary source of feed has resulted in a variety of operation sizes. *********************************************************************************** India’s Rice Export Ban Has Benefits and Challenges for U.S. Growers America’s rice producers and exporters will benefit from India’s recent decision to ban exports of white rice as global demand for U.S. rice will likely rise. The higher world demand will temporarily lift prices for U.S. rice growers, and the industry is well-positioned to meet higher demand for exports. However, CoBank says the short-term benefits of India’s rice export ban will give way to the longer-term consequence of an oversupplied global market and severe price correction when the ban is eventually reversed. New research from CoBank’s Global Knowledge Exchange says higher global rice prices resulting from the export ban will push other countries to expand rice production, increasing global supplies. When India does lift its export ban, the country’s surplus of rice will get dumped on the world export market. That means world rice prices will overcorrect from the sudden boost in supplies. India’s government imposed the ban on July 20. *********************************************************************************** Weekly Drought Monitor Shows a Mix of Dry Weather and Recent Rainfall The latest Weekly Drought Monitor showed similar conditions to last week. Above-normal temperatures and mostly-dry weather continued through parts of Texas and into the lower Mississippi Valley, where ongoing drought conditions continued deteriorating. Drought intensified in eastern Texas, Louisiana, and south-central Mississippi. Increasing short-term drought continued across Arizona, New Mexico, and southwest Colorado. Frequent rounds of heavy rainfall occurred from the Northeast into the Central Mississippi Valley and into southern Missouri and the Upper Midwest. The continued wet conditions are improving drought across parts of the Corn Belt and much of the southern and central Midwest. Ohio, Indiana, and Illinois saw continuing improvement, with D1 removal from Ohio and Indiana. Farther north, drought continued to intensify across northern Wisconsin, North Dakota, Montana, and Washington. Eastern parts of the High Plains saw continued precipitation and below-normal temperatures. Kansas saw heavy precipitation continue from last week, further improving the east and central regions. *********************************************************************************** Corn Export Sales Move Higher Corn sales to overseas buyers for this current marketing year improved in the seven days ending on August 10. USDA data shows that soybean export sales declined during the same period last year. Exporters sold 233,500 metric tons of corn for delivery for 2022-2023, up 55 percent from the previous week and 16 percent above the prior four-week average. In its weekly Export Sales report, the agency says the top three buyers were all unknown destinations. Sales for delivery in the 2023-2024 marketing year that starts September 1 totaled 704,700 metric tons. Soybean sales were 77 percent lower week-over-week and down 42 percent from the four-week average to 93,600 metric tons for 2022-2023. Sales for delivery in 2023-2024 totaled over 1,400,000 metric tons. Wheat sales for the current marketing year dropped 37 percent from the previous week but were up three percent from the four-week average to 359,500 metric tons.
| Rural Advocate News | Monday August 21, 2023 |
Top 5 Things to Watch - Crop Rebound, Pipelines all on Tap This Week OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Aug. 20. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Rebound crop: There seems little letup on the ongoing discussion on how well the 2023 corn and soybean crops have rebounded following recent rains. We'll continue to have reports from the field as we track grain fill and pod set, leading up the USDA's next World Agricultural Supply and Demand Estimates (WASDE) report Sept. 12. If you participated in our DTN Summit Series event Aug. 15, you know Gro Intelligence added a bit to the 177-bushel-per-acre average estimate on corn revealed during our Digital Yield Tour the week prior. Will those yields hold through August? Stay tuned. 2. Weather: The wall of hot weather taking hold across the country will be the most-watched weather factor, but we're also tracking Hurricane Hilary as it moves onto the West Coast and potentially up into the Pacific Northwest and Idaho, and on into the Canadian Prairies. An early view on the hurricane can be found in our Ag Weather Forum blog; watch for updates in that space as well. . 3. Pipeline dreams: Tuesday marks the beginning of hearings on the Summit Carbon Solutions pipeline, which is proposed to cross Iowa and into North Dakota. Summit wants to pipe carbon dioxide to be injected into the Bakken geology formation. The Iowa Utilities Board will hold a hearing in Fort Dodge to discuss the pipeline's permit, including Summit's request for eminent domain rights on parcels of land that have not signed easements. 4. Broadband update: USDA scheduled an update on its investments in rural broadband, something we watch closely here at DTN. We should have results of the latest report early in the week. 5. Weekly reports of note: Monday we'll have USDA's weekly export inspections at 10 a.m. CDT, USA Crop Progress report comes in at 3 p.m. Tuesday morning we'll see U.S. existing home sales for July, with new home sales numbers out Wednesday. Wednesday also sees U.S. Energy Department's weekly energy inventories at 9:30 a.m. Then, Thursday features USDA weekly export sales report, U.S. weekly jobless claims, U.S. durable goods orders and an update of the U.S. Drought Monitor, all due at 7:30 a.m. The U.S. Energy Department's report on natural gas storage at 9:30 a.m. On Friday is the University of Michigan's index of consumer sentiment at 9 a.m.
| Rural Advocate News | Monday August 21, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts and any news regarding shipments of grain from Ukraine. USDA will have its usual weekly report of export inspections at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Weather A dome of heat has parked itself across the middle of the country and will be turning it up on Monday with significantly high readings and near-records in some areas between the Rockies and Appalachians. Western states continue to deal with heavy rainfall from the remnants of Hurricane Hilary as it moves north through the region.
| Rural Advocate News | Friday August 18, 2023 |
U.S. Establishes Dispute Panel on Mexico’s Biotech Measures U.S. Trade Representative Katherine Tai announced the United States is establishing a dispute settlement panel under the U.S.-Mexico-Canada Agreement. The U.S. is challenging Mexico’s measures on biotech corn. Mexico set rules in place during a decree in February that banned the use of biotech corn in tortillas or dough. The Mexican government also instructed its agencies to gradually substitute – i.e., ban – the use of biotech corn in all products for human consumption and for animal feed. Mexico’s measures aren’t based on science and undermine the market access it agreed to provide in the USMCA. “The United States has used the tools provided by the USMCA in attempting to resolve concerns with Mexico’s biotechnology measures,” says Tai. “We’re taking the next step in enforcing Mexico’s obligations under the agreement.” She also says Mexico’s approach to biotechnology isn’t based on science and runs counter to decades worth of evidence clearly demonstrating its safety. *********************************************************************************** Wheat Exports to Hit 52-Year Low The U.S. Department of Agriculture says America’s all-wheat exports are projected to be 700 million bushels, the lowest level since the 1971-1972 marketing year. That’s a 25-million-bushel reduction from the prior month’s forecast. Despite an increase in Hard Red Winter Wheat production, exports are cut 25 million bushels to 165 million, the lowest level since by-class supply and utilization records began in 1972-1974. U.S. exports of HRW remain uncompetitive on the global market as shown by shipment and sales data. HRW exports in June were 10 million bushels, down from 19.2 million bushels in June 2022. Using data for the Foreign Agricultural Service’s Export Sales Reporting, all-wheat U.S. total commitments are about 6.4 million metric tons as of August 3, down 26 percent from the same point last year. It’s also 37 percent below the recent ten-year average at this point. HRW total commitments are 53 percent lower compared to last year. *********************************************************************************** Johnson Introduces Bill to Reinstate MCOOL U.S. Representative Dusty Johnson (R-SD) introduced the Beef Origin Labeling Accountability Act to bring clarity and to reinstate mandatory country of origin labeling (MCOOL) for beef products. “Consumers don’t know where their beef comes from,” Johnson says. “It could be South Dakota, Brazil, or Canada. U.S. producers raise better beef, and they’re not getting credit for it.” The act will direct the U.S. Trade Representative and Ag Secretary to work together to determine a process of reinstating Mandatory Country of Origin Labeling for beef that is compliant with World Trade Organization rules. It also directs the U.S. Trade Rep to consult with the Canadian and Mexican governments to resolve the outstanding MCOOL trade disputes the two countries have open against the U.S. “This bill is a step in the right direction to get accurate labels back on these products to increase consumer confidence in American-made and grown products,” Johnson adds. *********************************************************************************** Investments to Growing Animal Feed Indoors Forever Feed Technologies announced a multimillion-dollar investment from a renowned group of dairy and agricultural leaders to develop sustainable automated indoor-growing feed mills. The climate-controlled technology will greatly reduce water, land usage, and methane emissions in helping the industry reach its goal of being “climate neutral by 2050. The new investment funds will go to building the largest and most reliably controlled environmental mills, capable of feeding thousands of animals with fresh high-quality feed year-round. In turn, that helps producers to responsibly expand their operations to meet growing demands. Steve Lindsley, Forever Feed Technologies CEO, says, “We’re pleased to have assembled some of the most respected dairy and agricultural leaders in the country to participate in our funding round. Forever Feed is committed to building world class water-saving technology that will allow our customers to sustainably grow cattle feed 365 days a year anywhere in the world.” Information is available at foreverfeed.tech. *********************************************************************************** Wheat Organizations Support Recent Food for Peace Donation Organizations representing Pacific Northwest wheat growers and the U.S. milling industry are celebrating the latest Food for Peace donation of 28,000 metric tons of soft white wheat. U.S. wheat farmers, U.S. Wheat Associates, the National Association of Wheat Growers, and the North American Millers’ Association have partnered with the U.S. international food assistance program for 70 years. Since 2020, America has donated more than one million metric tons of wheat and millions of dollars in food aid every year. The soft white wheat donation was grown in Washington, Oregon, and Idaho. Wheat growers and the milling industry applauded the introduction of the American Farmers Feed the World Act last June. It would “put the food back into food aid” by restoring Food for Peace to its roots as a purely in-kind commodity donation program and require at least half of all Food for Peace funds be used to buy American commodities. *********************************************************************************** CattleCon24 Registration Opens Early Registration and housing are now open for CattleCon24, the cattle industry’s largest event of the year. “It’s “Onward to Orlando,” where cattle producers from across the country will gather January 31-February 2, for business meetings, educational sessions, engaging speakers, and family fun. “By opening registration early this year, we hope to give producers the ability to plan a family vacation in conjunction with CattleCon,” says Kristin Torres, executive director of meetings and events with the National Cattlemen’s Beef Association. “Orlando and the surrounding areas offer a variety of family-friendly activities, and we want attendees to take advantage of a great location.” Attendees can look forward to a variety of educational opportunities including the CattleFax Outlook Seminar, weather and industry updates, grazing management workshops, guest speakers on the trade show floor, and the 31st annual Cattlemen’s College. Leaders in sustainability, quality, and cattle feeding will get recognized during a stewardship program reception.
| Rural Advocate News | Friday August 18, 2023 |
Friday Watch List Markets USDA's monthly cattle-on feed report for August 1 at 2 p.m. CDT is the only significant report of the day. Traders will keep up with the latest weather forecasts and news regarding Ukraine's efforts to ship grain, while under attack. Weather A hot ridge is moving into the Plains and bringing the heat on Friday. Cooler temperatures in the Midwest will only be temporary as the heat spreads over the weekend. Western areas are on the watch for Hurricane Hilary, which is expected to induce flooding rains for California and the Desert Southwest over the weekend into early next week.
| Rural Advocate News | Thursday August 17, 2023 |
Fertilizer Prices Continue Decline Fertilizer prices have continued their more than year-long decline through the first two weeks of August 2023. The University of Illinois’ FarmdocDAILY website shows that on a per pound of nitrogen basis, urea and liquid nitrogen fertilizers have historically been priced at a premium of 35 to 40 percent above anhydrous ammonia. However, the premium narrowed in 2022 as the Russia-Ukraine conflict disrupted global fertilizer markets. The premium on liquid, relative to anhydrous, has returned to more historical levels while the gap has continued to narrow between urea and anhydrous prices. This is attributed to continued expansion in global production capacity combined with lower demand prospects. The continued decline in fertilizer prices improves return and income prospects as we look ahead to soon-to-be-released crop budgets for 2024. If the low premium on urea relative to anhydrous extends into the coming months, it may make urea a more attractive nitrogen option for farmers in 2024. *********************************************************************************** US Welcomes WTO Report on China Trade Retaliations The U.S. Trade Representative's Office welcomed a report from the World Trade Organization calling U.S. steel and aluminum tariffs justified for security reasons. The WTO report recognized that U.S. Section 232 actions on steel and aluminum are security measures, and that China illegally retaliated with sham "safeguard" tariffs. The panel rejected China's argument that the U.S. Section 232 actions are safeguard measures that may be "rebalanced" under WTO rules. However, officials from China called on the U.S. to lift the tariffs imposed on Chinese products following the report. China's commerce ministry claims the root cause lies in "the unilateralist and protectionist" nature of the United States. China maintains that its actions "are a legitimate move to safeguard its legitimate rights and interests." Tariffs imposed on American agricultural exports in retaliation for Section 232 tariffs on steel and aluminum imports led to an overall $27 billion reduction in U.S. ag exports from mid-2018 to the end of 2019. *********************************************************************************** USDA Releases August Oil Crops Outlook USDA’s National Agricultural Statistics Service published its first survey-based forecast of the 2023/24 U.S. soybean yield this month. At 50.9 bushels per acre, the current soybean yield forecast is down 1.1 bushels per acre from last month. The soybean crush forecast is unchanged at 2.3 billion bushels, supported by the greater demand for soybean oil and domestic soybean crush capacity expansion. A waning supply of canola oil and drought conditions in Canada and the United States have elevated prices for both old and new crop soybean oil. The average soybean oil price is forecast at 62.0 cents per pound, up 2.0 cents from last month but down from a revised 2022/23 price of 65.0 cents per pound. Soybean oil used for biofuels production supports strong domestic demand. In contrast, domestic soybean meal demand is lower than expected as livestock growth is slower than anticipated. USDA lowered the forecast for domestic soybean meal demand by .25 million short tons to 39.73 million short tons. *********************************************************************************** New Falling Number Test Prevents Wheat Contamination As wheat harvesting season comes to an end, farmers brace for a potential threat to their crop that costs tens of millions of dollars each year. High levels of alpha-amylase (am-uh-laze) protein in wheat can lead to a low falling number score, a factor that determines the quality and price of wheat. If growers cannot detect wheat with a low falling number, the wheat may mix with sound wheat on farms, in grain elevators or during transport, compromising the entire bushel. The Foundation for Food & Agriculture Research is awarding a $835,800 Seeding Solutions grant to Washington State University to develop a faster, cheaper and more accurate test, to prevent mixing of low and high falling number wheat. The current falling number test, developed almost 70 years ago, is slow, expensive, exhibits high variability and does not assess alpha-amylase levels directly. In addition to developing new rapid tests, the grant also includes developing an early warning system to alert grain handlers to weather patterns likely to cause spikes in alpha-amylase. *********************************************************************************** Adult Obesity Rates Increased During First Year of COVID-19 Pandemic New data from USDA’s Economic Research Service shows that adult obesity increased during the first year of the COVID-19 pandemic. Broad efforts to contain COVID-19 included travel, work, and social restrictions. Such behavioral adjustments disrupted the dietary and activity patterns of U.S. adults. The percentage of adults with obesity was 40.7 percent in early 2020. One year later, the rate grew by 1.8 percentage points to 42.5 percent. There was not an immediate, substantial increase when the pandemic began. Rather, the obesity rate was statistically indistinguishable from the pre-pandemic prevalence during the first three months of the pandemic, March–May 2020, at 40.8 percent. The next three time periods saw statistically significant increases relative to the baseline pre-pandemic period. The total obesity rate increase from March 2020 to March 2021 was more than triple the average yearly growth rate of 0.5 percentage points in the preceding decade, 2011–2019. *********************************************************************************** Ag Lenders Donate to Hawaii Relief Efforts Farm Credit Association American AgCredit, rural banking partner CoBank, and The Federal Agricultural Mortgage Corporation, also known as Farmer Mac, are donating $40,000 to Maui Food Bank to help aid during the devastating wildfires that are wreaking havoc in Hawaii. AgCredit CEO Curt Hudnutt says, “When natural disasters impact the communities in which we live and work, we stand ready to support.” CoBank’s Brenda Frank adds, “The contribution to the Maui Food Bank is intended to address the immediate needs and reduce suffering of those impacted by the wildfires in Maui.” Farm Credit has had a presence in Hawaii for over 50 years. The association has been a strong provider of financial support to Hawaiian farmers and ranchers. Meanwhile, President Joe Biden says he intends to ensure people in the state have "everything they need" to recover. Biden plans to visit the area Monday. More than 100 deaths were reported, with 1,300 people still missing following the wildfires.
| Rural Advocate News | Thursday August 17, 2023 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. weekly jobless claims and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CDT Thursday. U.S. leading indicators for July are at 9 a.m. and the U.S. Energy Department's report on natural gas storage is at 9:30 a.m. USDA's Livestock, Dairy and Poultry outlook follows at 2 p.m. Weather A front is pushing a line of showers and thunderstorms through the Great Lakes on Thursday, some of which could be stronger. Temperatures behind the front are going to be briefly cool while heat in the West starts to bulge out into more of the Plains. Drier conditions are expected for most other areas except in the West, which is seeing monsoon showers increasing ahead of the potential flooding from Tropical Storm Hilary that will move in this weekend and early next week.
| Rural Advocate News | Wednesday August 16, 2023 |
Thompson: Farm Bill Extension Likely House Agriculture Chairman Glenn GT Thompson says, "We're probably going to need an extension," referring to the timing of the 2023 Farm Bill. At a listening session in Missouri this week, the Pennsylvania Republican acknowledged that "the clock is ticking," with the current farm bill set to expire at the end of the fiscal year, September 30. The event is one of many held by the committee that Thompson calls a "perpetual barnstorming tour" across rural America. The House Agriculture Committee is expected to release a draft version of the 2023 Farm Bill, possibly by the end of the month, according to Thompson. The chairman says, "There's a lot of competition" for time on the House floor next month, with appropriations bills still needing attention, as well. However, any continuing resolution would likely have a farm-bill extension included. Thompson adds, "I hope it's a very short extension," if one is needed. *********************************************************************************** Plant-Based Meat Alternatives Sales Declining U.S. consumers remain interested in plant-based meat alternatives, but higher prices have led many prospective return consumers to taper off their purchases. Plant-based meats are often several dollars a pound higher than equivalent meat and poultry products. Beyond cost, lingering negative perceptions surrounding taste, value and versatility are also obstacles the category has yet to overcome. According to a new report from CoBank, the market for plant-based meats has likely reached a tipping point as the initial period of exceptional sales growth appears to be over. Plant-based meat sales peaked in 2020 when consumers had more discretionary income and were curious about broadening their food spend in the wake of pandemic-era food shortages. But fewer than half of Americans who tried the products at the time repeated their purchase. Sales of meat alternatives have fallen steadily since 2021 and more sharply over the last year. Volume sales dropped 20.9 percent for the 52-week period ending July 2, 2023. *********************************************************************************** USDA Offers Disaster Program Flexibilities for Flood-Impacted Producers USDA’s Farm Service Agency and Risk Management Agency authorized flexibilities for disaster assistance programs and crop insurance to aid Northeast farmers impacted by flooding this year. USDA Undersecretary Robert Bonnie says, “The production and physical losses to flooding have devastated farmers and ranchers in the Northeast.” Bonnie visited the region this week, announcing that “USDA is committed to assisting these producers in their ongoing recovery efforts.” FSA has authorized policy exceptions in all flood-impacted counties in Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. The flexibilities apply to Farm Storage Facility Loans, the Livestock Indemnity Program, the Noninsured Crop Disaster Assistance Program, and other programs and efforts. Additionally, Producers experiencing financial hardships and finding themselves behind on their FSA Marketing Assistance Loan repayment should contact their USDA Service Center to discuss repayment concerns with FSA staff. *********************************************************************************** Variable Rate Technology Adoption Increasing New data from USDA’s Economic Research Service shows variable rate technology adoption is on the rise. Farmers use variable rate technologies to control the amount of farm inputs—such as seed, fertilizer, and chemicals—applied as farm machinery moves across a field. Data from USDA’s Agricultural Resource Management Survey show that initial adoption in the late 1990s and early 2000s was sluggish, remaining below ten percent of planted acres for several field crops. However, adoption rates for corn and cotton have increased markedly over the last decade. The adoption rate for corn stood at 37.4 percent of planted acres in 2016, up from 11.5 percent in 2005. Cotton acreage showed a similar increase, rising from 5.4 percent in 2007 to 22.7 percent in 2019. Recent adoption rates across other crops included 13.9 percent for sorghum in 2019, 18.8 percent of winter wheat planted acres in 2017, and 25.3 percent of soybean-planted acres in 2018. *********************************************************************************** USDA to Open Urban Service Center in Philadelphia The Department of Agriculture is opening a new Urban Service Center in Philadelphia as part of a broader effort to support urban agriculture in Pennsylvania. NRCS Pennsylvania State Conservationist Denise Coleman says, “Every producer deserves USDA support in their own community, whether that community is urban or rural. The Urban Service Center in Philadelphia is one of 17 across the country. The Urban Service Centers are staffed by Natural Resources Conservation Service and Farm Service Agency employees. The facilities offer farm loan, conservation, disaster assistance and risk management programs. USDA works with agricultural producers through a network of more than 2,300 Service Centers nationwide, and the new Urban Service Centers will strengthen services to urban producers, according to the department. The Philadelphia Urban USDA Service Center will open the week of August 21, 2023. To learn more about Urban Service Centers, or to find a location near you, visit farmers.gov/urban. *********************************************************************************** Tractor Supply Company to Host National Farmers Market Tractor Supply Company, the largest rural lifestyle retailer in the United States, will host a nationwide Farmers Market on Saturday, August 19 in all of the retailer's 2,100+ communities. The event will showcase the talent and products of local farmers, growers, craft makers, artisans and other producers. Customers and community members are invited to stop by, explore the wide range of offerings and support their neighbors by purchasing homemade and homegrown goods and products. The free event takes place outside Tractor Supply stores nationwide, with local vendors selling products like fresh fruit and vegetables, arts and crafts, accessories, specialty food and drink and more. Although registration for local sellers is closed, customers can contact their local store for additional information regarding partners and activities. As of July 1, 2023, the Company operated 2,181 Tractor Supply stores in 49 states, including 81 stores acquired from Orscheln Farm and Home in 2022 that will be rebranded to Tractor Supply by the end of 2023.
| Rural Advocate News | Wednesday August 16, 2023 |
Wednesday Watch List Markets A report on U.S. housing starts in July is set for 7:30 a.m. CDT Wednesday, followed by U.S. industrial production in July at 8:15 a.m. The Energy Department's weekly energy inventories will follow at 9:30 a.m. Traders will continue to check the latest weather forecasts and follow the news from Ukraine. Weather An overall quiet day is in store for most of the country. But a system going through Canada will send a cold front through the Upper Midwest on Wednesday. The front could produce some showers and thunderstorms and also bring some breezy winds as it works through.
| Rural Advocate News | Tuesday August 15, 2023 |
APHIS Proposal to Strengthen Quarantine and Inspection Program USDA’s Animal and Plant Health Inspection Service is seeking comments on a proposed rule to amend regulations governing its Agricultural Quarantine and Inspection program user fees. APHIS and the U.S. Department of Homeland Security’s Customs and Border Protection jointly administer the program, ensuring that cargo and passenger baggage entering the country is inspected for plant pests and potential sources of animal diseases that could affect U.S. agriculture, trade and commerce. Foreign pests and diseases can devastate U.S. agriculture and the broader U.S. economy, and the AQI program is highly successful at preventing such disruptions. Fees for the AQI program were last updated in 2015. The outdated fee structure and recent changes in international travel and shipping mean that current fees do not generate enough revenue to cover the costs of the AQI services provided. APHIS will consider all comments received on or before October 10, 2023. Go to www.regulations.gov to search for the proposal and comment. *********************************************************************************** USDA Providing Additional Assistance to Loan Borrowers Facing Financial Risk The Department of Agriculture is providing additional, automatic financial assistance for qualifying guaranteed Farm Loan Programs borrowers who are facing financial risk. The announcement is part of the $3.1 billion to help certain distressed farm loan borrowers provided through the Inflation Reduction Act. Agriculture Secretary Tom Vilsack says, "The financial assistance included in today's announcement will provide a fresh start for distressed borrowers with guaranteed farm loans and will give them the opportunity to generate long-term stability and success." Since the Inflation Reduction Act was signed in August 2022, USDA has provided approximately $1.15 billion in assistance to more than 20,000 distressed borrowers as a part of an ongoing effort to keep borrowers farming. The additional financial assistance will provide qualifying distressed guaranteed loan borrowers with financial assistance similar to what was already provided to distressed direct loan borrowers. Based on current analysis, the financial assistance will assist an estimated approximately 3,500 eligible borrowers, subject to change as payments are finalized. *********************************************************************************** Income Spent on Food Increased 13% in 2022 U.S. consumers spent an average of 11.3 percent of their disposable personal income on food in 2022, a level not observed since the 1980s, according to USDA’s Economic Research Service. Disposable personal income is the amount of money consumers have left to spend or save after paying taxes. Consumers spent 5.62 percent of their incomes on food at supermarkets, convenience stores, warehouse club stores, supercenters, and other retailers in 2022 and 5.64 percent on food at restaurants, fast-food establishments, schools, and other places offering food away from home. In 2022, the share spent on total food had the sharpest annual increase, 12.7 percent. This followed an 8.2-percent decline, the sharpest annual drop in total food spending since 1967, during the first year of the Coronavirus pandemic in 2020. The recent volatility in spending was driven by consumers’ sudden drop in eating out at the beginning of the pandemic followed by a return to food-away-from-home purchases as pandemic-related restrictions and concerns eased. *********************************************************************************** Training Available to Help Producers Manage Phosphorus Losses A series of online training modules is now freely available to farmers, interested in designing on-farm systems to remove phosphorus from field runoff or subsurface drainage. Available on the Internet, the modules comprise seven narrated videos, starting with a basic overview of the need for phosphorus removal systems, followed by how to design, build and install them, as well as how to properly dispose of or recycle the absorbent materials used to help capture the nutrient in drainage water and runoff. Phosphorus is a critical nutrient for optimal plant growth, health and yield. However, phosphorus that leaves agricultural fields in runoff or drainage water can accumulate in bodies of surface water, like rivers and lakes. Management practices and engineered systems that prevent phosphorus loss are vital to maintaining environmental quality. The modules can help users navigate their way through the process, as well as provide “lessons learned” from the field. *********************************************************************************** Graduate Students Encouraged to Apply for Beef Industry Scholarships The National Cattlemen’s Foundation is accepting applications for the annual W.D. Farr Scholarship program. Established in 2007, the scholarship recognizes outstanding graduate students pursuing meat science and animal agriculture careers. Two $15,000 grants are awarded to graduate students who demonstrate superior achievement in academics and leadership and are committed to the advancement of the beef industry. Scholarship recipients recognize that the program not only benefits their work but also the entire industry. Graduate students must apply online by submitting a cover letter, goals and experience, a short essay, statement of belief in the industry, as well as a review of the applicant's graduate research and three letters of recommendation by September 22, 2023. The 2023 scholarship recipients will be recognized at CattleCon 2024. The scholarship honors the successful career of the late W.D. Farr, a third-generation Coloradan, pioneer rancher, statesman and banker known for his extraordinary vision. For more information and to apply for the scholarship, visit www.nationalcattlemensfoundation.org. *********************************************************************************** Gas and Diesel Prices Rise Again For the fifth straight week, the nation's average price of gasoline increased, rising 2.5 cents from a week ago to $3.82 per gallon. The national average is up 29.1 cents from a month ago but 9.6 cents per gallon lower than a year ago. The national average diesel price rose 12.3 cents last week and stands at $4.270 per gallon, 77.3 cents lower than one year ago. GasBuddy's Patrick De Haan says prices "could climb slightly higher as we get closer to Labor Day, as oil prices remain under pressure from recent OPEC+ production cuts." Gasoline prices stand just over a dime away from rising back above their year-ago level—something that is possible by the closing summer holiday. In addition, the largest refinery in the Midwest moved up its seasonal maintenance to several weeks earlier than expected, causing a somewhat unexpected jump at the pump in the Great Lakes.
| Rural Advocate News | Tuesday August 15, 2023 |
Tuesday Watch List Markets A report on U.S. retail sales for July will be out at 7:30 a.m. CDT Tuesday, followed by the start of DTN's Ag Summit Series at 8:30 a.m. Soybean crush estimates from members of the National Soybean Processors Association will follow later Tuesday morning. Traders will keep a close watch on the latest weather forecasts and news from Ukraine. Weather A low-pressure center continues to spin around Michigan and will produce areas of showers there and over the far eastern Midwest on Tuesday, but the focus for showers will be along the East Coast. Quieter and relatively cooler air is flowing through more of the country behind it, though hotter temperatures in the Pacific Northwest are leaking out into the Canadian Prairies and Northern Plains.
| Rural Advocate News | Monday August 14, 2023 |
Monday Watch List Markets Back from the weekend, traders will be paying close attention to the latest weather data and forecasts. Any news from the Black Sea is also high on the list. USDA's weekly export inspections will be out at 10 a.m. CDT and USDA's Crop Progress report is set for 3 p.m. Weather A storm system that plowed through the Northern Plains and Upper Midwest over the weekend continues eastward for Monday, spreading areas of showers and thunderstorms and heavy rain to portions of the Eastern Corn Belt. Some severe weathe
| Rural Advocate News | Friday August 11, 2023 |
U.S. Pork Exports Outstanding in First Half of 2023 U.S. pork exports concluded an excellent first half of the year with another strong performance in June. Pork exports in June hit almost 246,000 metric tons, 12 percent higher than in 2022. Export value rose six percent to $691.4 million. Through the first half of 2023, exports were 14 percent above last year’s pace at 1.47 million metric tons and valued at $4.05 billion, 12 percent higher than in 2022. “While Mexico is the pacesetter for U.S. pork exports, what’s exciting is the industry is achieving broad-based growth internationally,” says USMEF president and CEO Dan Halstrom. While below last year’s record pace, June beef exports topped $900 million in value, pushing first-half export value to almost $5 billion. June’s beef exports totaled 115,107 metric tons, down 12 percent from a year ago and slightly below the May volume. Value was $905.5 million. First-half beef exports were 10 percent behind last year. *********************************************************************************** Study Shows Positive Economic Impact of Soil Health The Soil Health Institute and the National Association of Conservation Districts announced the results of a nationwide study showing how improving soil health can improve a farmer’s profitability. The study shows farmers can build resilience across a diversity of soil types, geographies, and cropping systems. Among the key findings across 29 farms, Soil Health Management Systems increased net farm income by an average of $65 per acre. On average, when implementing soil health systems, it costs producers $14 an acre less to grow corn, $7 an acre less to grow soybeans, and $16 an acre less to grow all other crops. Yield increases were reported for 42 percent of farms growing corn, 32 percent of farms growing soybeans, and 35 percent of farms growing other crops. Farmers reported additional benefits like decreased erosion and soil compaction, earlier access to fields in wet years, and increased resilience to extreme weather events. *********************************************************************************** Groups Applaud First Senate Veterinary Medicine Caucus The U.S. Senate has established a Veterinary Medicine Caucus for the first time ever. The caucus will focus on increasing awareness toward veterinary-related matters in Congress, educating lawmakers and their staffs about the challenges facing the profession, and advancing the legislation that benefits the veterinary community. The bipartisan caucus will be led by Cindy Hyde-Smith (R-MS) and Amy Klobuchar (D-MN). In past years, the House Veterinary Medicine Caucus led the way in introducing key legislation that impacts veterinary medicine, such as the Rural Veterinary Workforce Act and the Healthy Dog Importation Act. The Senate caucus will extend these efforts to their side of the chamber while also helping secure important funding for veterinary-related federal programs. “The AVMA and American Association of Veterinary Medical Colleges are dedicated to working with the caucus on raising awareness of the essential services veterinarians provide and the challenges they currently face,” says Dr. Rena Carlson, AVMA president. *********************************************************************************** June Food Price Index Rebounds Slightly The United Nations Food and Agricultural Organization’s Food Price Index averaged 123.9 points in July, up 1.5 points, or 1.3 percent, from June. However, it remains 16.6 points or 12 percent below its value in the corresponding month last year. The July rebound was led by a solid rise in the vegetable oils price index and partially offset by a significant decline in the sugar price index. There were small decreases in the price index for cereals, dairy, and meat. The Vegetable Oil Price Index averaged 129.8 points in July, 14 points, or 12 percent higher, than in June. It’s the first increase after seven straight months of declines. The FAO Sugar Price Index averaged 146.3 points in July, 5.9 points, or 3.9 percent lower, than during June. The Dairy Index was down 0.5 points at 116.3. The Meat Price Index was 117.8 points in July, down 0.4 points from June. *********************************************************************************** Most Americans Are “Food Satisfied” The latest Purdue University Consumer Food Insights Report shows consumers who are most satisfied with their food consumption also spend the lowest share of their incomes on food. The July 2023 survey-based report from Purdue’s Center for Food Demand Analysis and Sustainability assesses food spending, consumer satisfaction and values, support for agriculture and food policies, and trust in their information sources. Three of every four Americans who responded say their food satisfaction is thriving. The researchers found that consumers have yet to embrace meat alternatives as better than beef from cattle. Other results include household food-at-home spending is up 4.6 percent from July 2022, reaching its highest level yet. Consumers’ predictions for food inflation over the next 12 months have dropped to 3.7 percent, the lowest level recorded by the Purdue University survey. Food insecurity is a percentage point down from the previous month but higher than the 2022 average. *********************************************************************************** American Lamb Board Survey Deadline is August 14 The American Lamb Board is gathering data about how sheep are raised, cared for, and fed, for use in U.S. Lamb Checkoff Programs and needs producer input. “Our industry needs this information from America’s producers and feeders for consumers but also to help determine where to invest research and industry outreach funding,” says Peter Camino, ALB Chair from Buffalo, Wyoming. One lucky U.S. lamb producer or feeder will win a paid trip, including registration, airfare, and hotel, to the 2024 American Sheep Industry Convention in Denver, Colorado, just for completing the survey. The ALB will compare the results of this survey to the findings from a similar survey done in 2011, and this will let the industry identify areas where the industry has improved and issues that need addressing. Also, the survey data will be utilized to communicate with retailers, chefs, consumers, and guide industry education and research efforts.
| Rural Advocate News | Friday August 11, 2023 |
Friday Watch List Markets U.S. producer prices for July will be out at 7:30 a.m. CDT Friday, followed by the University of Michigan's consumer sentiment index for early August at 9 a.m. USDA's WASDE and Crop Production reports are set for 11 a.m., followed by estimates of prevented plantings from the Farm Service Agency at noon. DTN's WASDE webinar begins at 12:30 p.m. Weather A system will bring periods of showers and thunderstorms to the central Corn Belt on Friday. Early morning storms are not likely to be severe but are hitting some of the driest areas in northeast Iowa and southern Wisconsin. Additional development this afternoon and evening could end up being severe from eastern Minnesota and Wisconsin through Missouri and adjacent areas. A front across the southern tier remains active with some clusters of showers as well and continues to bottle-up extreme heat to the south.
| Rural Advocate News | Thursday August 10, 2023 |
Getting More Farmers in Carbon Markets American Farmland Trust and Sierra View Solutions released a report titled “Agricultural Carbon Programs: From Chaos to Systems Change.” The report analyzes 22 agricultural carbon markets and recommends changes that would help these programs succeed. The challenge was underscored by Ag Secretary Tom Vilsack, who says, “Among the many reasons why farmers aren’t enrolling in ag carbon programs, one of the most obvious reasons is the offered payments are too low.” Farmers also don’t take part because the ag carbon programs do not adequately define what a “new practice” is, and they are setting arbitrary caps on participation in different areas. A third problem area is that carbon programs originally designed for forestry projects are being applied to farmers and create unrealistic requirements to sequester carbon for 40 to 100 years. There are also concerns about the length of time for each carbon program and data and technology barriers for agriculture. *********************************************************************************** NASS Releases 2023 Land Values Summary The U.S. farm real estate value, a measurement of the value of all land and buildings on farms, averaged $4,080 per acre for 2023. That’s up $280 per acre, or 7.4 percent, from 2022. The U.S. cropland value averaged $5,460 per acre, an increase of $410 per acre, or 8.1 percent, from the previous year. The U.S. pasture value averaged $1,760 per acre, up $110 per acre, or 6.7 percent from 2022. Among the notable state-level data, the NASS Iowa Field Office says that “Cropland cash rent paid to Iowa landlords in 2023 averaged $269 per acre. Non-irrigated cropland rent averaged $269 per acre, while irrigated cropland averaged $271 an acre, $13 and $19 higher, respectively, compared to last year. Cropland was valued at $10,100 per acre, $750 higher than 2022. In Minnesota, cropland cash rent averaged $198 per acre. Cropland, at $6,820 an acre, was $620 higher than 2022. *********************************************************************************** NACD Targets Local Climate-Smart Conservation Projects The National Association of Conservation Districts is looking for concept papers as it launches the first phase of its $90 million program funded by USDA’s Partnerships for Climate-Smart Commodities. The program will advance grassroots efforts to ensure producers and local communities are prepared to meet the growing demand for climate-smart commodity markets. Through its network of 3,000 conservation districts and partners, NACD anticipates reaching more than 1,400 producers, more than half of which will be small and underserved producers. With nearly half of the program budget dedicated to producer incentives and payments, it aims to implement climate-smart practices on over 430,000 acres and reduce or sequester over 1.5 million metric tons of CO2 equivalent. NACD wants concept papers detailing innovative ideas that scale implementation of climate-smart practices, advance greenhouse gas measurement, monitoring, reporting, and verification, or support producer participation in resulting markets. The organization will then support project development through a matchmaking process. *********************************************************************************** Bill Would Expand Access to Dairy Products in SNAP A new bipartisan bill introduced in Congress looks to expand access to dairy products for all program recipients. The legislation would amend the Healthy Milk Fluids Incentive program and allow SNAP recipients to get more products like yogurt and cheese. The bill, introduced by Jim Costa and Nick Langworthy, is intended to boost dairy intake and support U.S. dairy farmers. Ninety percent of Americans don’t get enough dairy in their diet. Food Navigator says the bill is endorsed by the International Dairy Foods Association, National Milk Producers Federation, and the National Grocers Association. The bill’s title says it aims to “amend the Food and Nutrition Act of 2008 to establish a dairy nutrition incentive program.” The IDFA says the new Dairy Incentives Program Act will enhance the HFMI program’s scope by adding whole and reduced-fat milk, cheese, and yogurt. Michael Dykes of IDFA says milk, cheese, and yogurt are “nutritional powerhouses.” *********************************************************************************** China’s Ag Imports Rise So Far in 2023 China imported more agricultural products in the first six months of 2023 than it did during the same period in 2022 as soybean prices surged higher. The value of those agricultural imports in the first half of this year rose over eight percent compared with the same time in 2022. USDA’s Foreign Agricultural Service report says exports overall were relatively flat. Soybean imports jumped 11 percent to a value of $30 billion, while volume rose 14 percent to 52.6 million metric tons. Grain import purchases were up seven percent year-over-year to $45.4 billion as volume gained 4.% percent to 83.4 million metric tons. The agency says Edible vegetable oils saw the biggest percentage increase as the value of those imports rose 139 percent to $5.3 billion, and volume jumped 79 percent higher to 4.5 million metric tons. Chinese imports of U.S. soybeans. gained 12 percent to almost 20 million metric tons. *********************************************************************************** Drought Covers 100% of Iowa A few consecutive dry weeks are giving crops in Iowa varying degrees of drought stress. An Iowa State University Extension expert says there hasn’t been much measurable rainfall for as many as three weeks in many areas. Prior to that dry spell, Iowa had been getting just enough rain at times to get by. Much of the dry weather came when corn and soybeans entered their reproductive stages, which is when those crops need rain the most. A corn or soybean crop typically needs 20 inches of moisture from rainfall and subsoil moisture to produce a crop. However, ISU expert Gentry Sorenson told Successful Farming, “We had a couple of counties that didn’t get any substantial soil moisture recharge through this year. ” Over 17 percent of Iowa’s acres are abnormally dry while 52 percent of the state is in D1 moderate drought. D2 severe drought is impacting 26 percent of the state.
| Rural Advocate News | Thursday August 10, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT Thursday, the same time as U.S. weekly jobless claims, consumer price index for July and an update of the U.S. Drought Monitor. The U.S. Energy Department's report on natural gas storage is at 9:30 a.m., followed by the Treasury budget for July at 2 p.m. Weather A system that moved through the southern end of the Corn Belt over the past couple of days is pushing into the Southeast where clusters of thunderstorms continue, some of which may be severe. Another system is moving through the Northern Plains. While showers are scattered and light Thursday morning, they are expected to intensify this afternoon and evening as they go through the eastern Dakotas and Nebraska, then into Minnesota and Iowa this evening and overnight.
| Rural Advocate News | Wednesday August 9, 2023 |
States Pushing for Year-round E15 Ethanol groups welcome efforts by Nebraska and Iowa prompting the Environmental Protection Agency to create regulations to allow for year-round sales of E15 in at least eight Midwest states. Earlier this year, the governors of Iowa, Nebraska, North Dakota, Wisconsin, South Dakota, Illinois, Minnesota, Missouri, and Ohio sent letters to EPA calling for parity between E10 and E15 in their states. EPA proposed a rule in March to make regulatory changes to implement year-round sales of E15 in those states beginning in the summer of 2024.EPA issued temporary emergency waivers to allow continued E15 sales this summer and last summer, but the industry seeks a long-term solution. Renewable Fuels Association President and CEO Geoff Cooper says, "We're hopeful that the action taken by Iowa and Nebraska today will help break the logjam and cause EPA to complete the process as soon as possible." Growth Energy CEO Emily Skor adds, “EPA needs to act now so that fuel retailers have the regulatory clarity they need to make investments and expand access to E15.” *********************************************************************************** NCBA Slams Presidential Overreach in Latest Antiquities Act Designation the National Cattlemen’s Beef Association slammed President Biden’s use of the Antiquities Act to put sweeping federal designations on over a million additional acres of land in Arizona. NCBA President Todd Wilkinson says, “NCBA is strongly opposed to the continued abuse of the Antiquities Act, and we urge President Biden to listen to the local communities that will be hurt by this designation.” The organization says the designation “adds insult to injury” for communities that are unheard and intentionally removed from land management conversations. Additionally, the Biden administration failed to communicate with the affected landowners prior to the designation and their so-called public opinion meeting and poll failed to gather perspective from the people most impacted by this decision. The Antiquities Act gives the President of the United States broad power establish national monuments from existing federal lands. NCBA says the designations are especially harmful to rural communities that rely on federal lands for their livelihood, such as public lands ranchers. *********************************************************************************** EPA Affirms Farmers’ Right to Repair In a letter to the National Farmers Union, the Environmental Protection Agency affirmed that the Clean Air Act cannot be used as a basis to restrict independent repair of farm equipment. In their opposition to Right to Repair legislation, equipment manufacturers and dealers have invoked EPA regulations and the Clean Air Act – specifically related to tampering with emissions control systems – as justification for their need to restrict repair. NFU President Rob Larew says, “EPA confirmed what farmers have known all along – equipment manufacturers have been using bad faith justifications to restrict independent repair.” EPA Administrator Michael Regan stated that “Like NFU and its members, EPA believes barriers to the proper repair and maintenance of nonroad equipment is harmful to the environment.” NFU strongly supports a federal legislative solution that guarantees farmers and independent mechanics the Right to Repair farm equipment on fair and reasonable terms and costs. *********************************************************************************** U.S. Suppliers Meet with Latin American Buyers Red meat buyers from Central and South America and the Caribbean recently met with U.S. suppliers in Colombia, during the 11th edition of the U.S. Meat Export Federation Latin American Product Showcase. With 70 U.S. exporting companies exhibiting at the showcase, 220 importers had the opportunity to meet U.S. suppliers and arrange purchases of a wide range of U.S. red meat products. The value and versatility of underutilized pork, beef and lamb cuts were a focus of the educational activities during the showcase. U.S. industry leaders in attendance also toured a distribution center and several types of retail outlets. Randy Spronk, a farmer from Edgerton, Minnesota, who serves as USMEF chair-elect, attended his third Latin American Product Showcase. He says, "It's great for those that fund USMEF to be able to see what those funds actually do and show the return on their investment." *********************************************************************************** Smithfield Foods Closing 35 Missouri Hog Farms Smithfield Foods will close 35 hog farm operations in Missouri, according to a state-required workforce adjustment notification. The notice indicated 92 employees would be affected by the closures, slated for August. Murphy Brown LLC, a division of Smithfield Foods, is reducing hog farming operations in Missouri and "must reduce its workforce accordingly," a company spokesperson told the St. Louis Post-Dispatch. Employees impacted by the closures were offered the chance to relocate to other hog-producing facilities operated by the company. Smithfield Foods is the world's largest pork processor and is owned by Hong Kong's WH Group. The announcement follows Tyson Foods' plans to close four chicken processing plants across the United States. Tyson plans to close operations next year at four facilities located in Arkansas, Indiana and Missouri. The U.S. meat industry is facing demand struggles in both pork and poultry thanks to increased prices and inflation, amid higher feed and labor costs. *********************************************************************************** USDA: WIC Participation Increased in 2022 USDA's Economic Research Service reports an increase in participants in the Women, Infants and Children, or WIC program, in 2022. The increase represents the first growth in the program in more than a decade. Participation averaged 6.26 million people a month, up from 6.24 million a month in fiscal year 2021. This was the first increase in overall participation since the record high 9.18 million in fiscal year 2010. Women participants increased by 1.5 percent in fiscal year 2022 after declining for the previous 12 fiscal years, whereas infant participants continued to decline. Declines in the number of births in the United States, beginning in 2008, may be a factor in drops in infant participation, according to USDA. WIC provides supplemental food packages, nutrition education, breastfeeding support, and health care referrals at no cost to low-income pregnant and postpartum women, infants younger than one-year-old, and children one to five years old who are at nutritional risk.
| Rural Advocate News | Wednesday August 9, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report, including ethanol production is set for 9:30 a.m. CDT, Wednesday's only significant report. Traders will continue to keep close watch on weather and events in Ukraine. Weather A system in the Central Plains will move eastward through the southern half of the Corn Belt Wednesday and into Thursday as well. Widespread showers and thunderstorms, some heavy and strong, will follow the system. Other showers will develop over northern areas with a front dropping south.
| Rural Advocate News | Tuesday August 8, 2023 |
Tyson Foods to Close Four Chicken Facilities Tyson Foods Monday announced the planned closure of four chicken processing facilities in the United States. Tyson Foods will close facilities in North Little Rock, Arkansas, Corydon, Indiana, Dexter, Missouri and Noel, Missouri. The company will shift production to other facilities and cease operations at the impacted locations in the first half of fiscal year 2024. Donnie King, Tyson Foods President and CEO, says, "While current market dynamics remain challenging, Tyson Foods is fully committed to our vision of delivering sustainable, top-line growth and margin improvement." Tyson made the announcement as part of its third-quarter fiscal year 2023 results. The company reported a 7.5 percent, or $324 million, operating loss on chicken operations, and a 5.6 percent loss in pork. Tyson Foods will evaluate the financial statement impact of the closures for charges related to contract terminations, impairments, accelerated depreciation, severance and retention and estimates total charges of $300 to $400 million. *********************************************************************************** Dairy Checkoff Shifts Schools Strategy The dairy checkoff marked its 13th year of impact through Fuel Up to Play 60 –while preparing a strategy to bring more partners together. Beginning this school year, the checkoff will shift to the "Fuel Up" platform. The effort will expand opportunities to increase access to dairy with other foods and engage youth around healthy eating and food production. With the announcement, Dairy Management Inc. is transitioning from a partnership with the NFL to a no-cost collaboration, which paves the way to co-create programs that support youth wellness. DMI President and CEO Barbara O'Brien says, "We need to think differently to protect farmers' ability to deliver long-term value to children and in schools." Fuel Up will work with schools and partners to deliver solutions and resources that increase access to dairy products, expand meal participation and educate students on the role of nutrition in physical wellness and academic achievement. *********************************************************************************** USDA Invests Nearly $30 Million to Boost School Nutrition The Department of Agriculture Monday announced nearly $30 million in subgrants to improve school nutrition. The funding is part of USDA's Healthy Meals Incentives Initiative, Action for Healthy Kids. The funding will span 264 school districts across 44 states and the District of Columbia. USDA Deputy Secretary Xochitl (So-CHEEL) Torres Small says, "With these funds, small and rural school districts will be able to modernize their operations and provide more nutritious meals." Each small or rural school district will receive up to $150,000 to support improving the nutritional quality of their meals and modernizing their operations. The efforts include innovative staff training, kitchen updates and renovations, redesigning food preparation and service spaces, and school-district-led initiatives. An online map features the selected school districts and their grant amounts. The map will be updated on a rolling basis as schools formalize their grant agreements. To learn more about other resources USDA provides to strengthen school meal programs, visit the USDA Support for School Meals webpage. *********************************************************************************** Organic Fresh Produce Sales up 1.5% Organic fresh produce grew slightly in sales dollars and volume in the second quarter of 2023, reversing a trend of volume loss seen in 2021 and 2022. Overall, organic fresh produce dollar sales increased by 1.5 percent for Q2 2023 compared to the same period last year, with sales for the quarter topping $2.4 billion. Volume movement nudged up slightly less than one percent, reversing a downward volume trend that started in 2021. During Q2 2023, conventional produce dollar sales grew by two percent, while volume declined by 1.3 percent, as total sales topped $18.8 billion. The Organic Produce Network and Category Partners reports, “The rate of organic sales growth--while still positive--slowed compared to past years, giving volume a chance to match that growth.” In the second quarter of this year, 11 of the top 20 organic fresh produce categories posted increases in dollar sales compared to the same period last year. *********************************************************************************** National FFA Membership Reaches All-Time High The National FFA Organization Monday announced a record-high student membership of 945,988, an increase of 11 percent from last year. In addition, the number of FFA chapters continues to grow — increasing by 168 this year, resulting in 9,163 chapters in the U.S., Puerto Rico and the U.S. Virgin Islands. National FFA CEO Scott Stump says, “It’s exciting to see our numbers grow and know we continue to influence the next generation of leaders,” adding, “We’re excited to see the enthusiasm for agricultural education and FFA reflected in our membership.” The top five membership states are Texas, California, Georgia, Illinois and North Carolina. This year, the organization has more than 150,000 Latino members, more than 50,000 Black members, more than 9,000 Asian members, more than 14,000 American Indian and Alaska Native members, and more than 2,400 Native Hawaiian and Pacific Islander members. More than 43 percent of the membership is female, and 49.8 percent is male. *********************************************************************************** Gas and Diesel Prices Move Higher Again The nation's average price of gasoline rose 7.8 cents last week to $3.79 per gallon, and diesel jumped 14.9 cents to $4.14 per gallon. The increases follow the rise in oil prices and pressure from hot weather that impacted refineries. However, the pace of increases has started to slow and appears to have peaked over the weekend and is beginning to gently fall, according to GasBuddy’s Patrick De Haan. The fuel market expert says, “Diesel will likely continue to see upward momentum while gasoline price increases should become more limited.” The price of crude oil has rallied for six straight weeks. In recent days, fundamentals have remained solidly in control behind the upward move, as Saudi Arabia continues its severe one million barrel per day production cut, driving prices higher. In addition, government data last week showed the largest weekly decline in U.S. crude oil inventories on record.
| Rural Advocate News | Tuesday August 8, 2023 |
Tuesday Watch List Markets The U.S. trade deficit for June is due out at 7:30 a.m. Tuesday, followed by the Energy Department's Short-Term Energy Outlook later Tuesday morning. Traders will continue to keep a close watch on weather and events in Ukraine. DTN's Digital Yield Tour continues Tuesday with closer looks at Illinois, Indiana and Ohio. Weather A front that has set up from Oklahoma to the Southeast will be active Tuesday with scattered showers and thunderstorms occurring. A piece of energy moving into the Central Plains will produce more widespread showers and thunderstorms, some of which could be severe. With a front dropping south into the northern states as well, it remains an active pattern for Tuesday.
| Rural Advocate News | Monday August 7, 2023 |
Top 5 Things to Watch - Yield Tour, WASDE, and Drought Relief OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Aug. 6. Watch for coverage of these and other topics through the week on our subscription platforms. 1. DTN Digital Yield Tour: Monday we'll have national yield numbers to kick off the sixth DTN Digital Yield Tour Powered by Gro Intelligence. With all the hit-and-miss rains, the heat, and relatively low pest issues so far this season, it will be truly interesting to see what the satellites and yield models see in terms of yield potential in corn and soybean fields. 2. August WASDE Friday: It will be a market-critical week, culminating in the August World Agricultural Supply and Demand Estimates (WASDE) report. As always, we'll have flash coverage moments after 11:00 a.m. CDT, with updates and analysis throughout the morning. 3. Heat continues retreat: The slow-moving front that drove weather this past week will move south, bringing rain potential to Kansas, Oklahoma, and areas further south. We'll look for the U.S. Drought Monitor update Thursday morning, which will only add to a week full of information on crops as they work through pollination and fill periods. Expect more rains where it has rained, driven by the humidity in those areas. 4. Prop 12 news continues: We had extensive coverage this past week on the influence of California's Proposition 12, which regulates pork sales in that state. Look for more discussion around federal efforts to overrule those regulations. 5. Expected economic reports: We'll be watching and responding to a host of government economic reports. Monday sees USDA's weekly export inspections at 10 a.m. CDT and the weekly Crop Progress report at 3 p.m. Note that Canada markets are closed. On Tuesday, the U.S. trade deficit report for June hits at 7:30 a.m., with the Energy Department's Short-Term Energy Outlook later that morning. Wednesday the Energy Department releases weekly energy inventory numbers at 9:30 a.m. On Thursday, we'll look for USDA weekly export sales report, the U.S. weekly jobless claims, and the consumer price index for July. Those and U.S. Drought Monitor are all due out at 7:30 a.m. The U.S. Energy report on natural gas storage hits at 9:30 a.m., with the Treasury budget for July at 2 p.m. On Friday the U.S. producer prices for July are revealed at 7:30 a.m., while the University of Michigan's consumer sentiment index for early August comes at 9 a.m.
| Rural Advocate News | Monday August 7, 2023 |
Minneapolis Fed Says Interest Rates Hit Least-Profitable Producers Hardest The Minneapolis Federal Reserve took a look at interest rates and how they are affecting producers in recent months. Interest rates have risen dramatically since last year, raising the cost of borrowing money. Ag producers in the Ninth District face additional expenses arising from supply issues and economic uncertainty. Interest rates have doubled since 2022 for agricultural producers after a decade of historically low and stable rates. The district’s least-profitable producers have higher debt per crop acre compared with the most profitable ones. As rates rapidly increase, cash flow projections for the least-profitable farmers are more sensitive to interest expenses. Increased production expenses could require them to secure even more funding due to lower working capital levels per acre farmed. In most years, the least-profitable producers spend up to three times more on interest expenses per crop acre farmed. Elevated interest rates will continue impacting producers this year and beyond. *********************************************************************************** Large Pork Producers Don’t Favor Overturning Prop 12 Legislation has been introduced in Congress that would overturn California’s Prop 12. Reuters says some of the country’s biggest pork producers who’ve already spent money to comply with the California requirements don’t favor throwing out Prop 12. The Ending Agricultural Trade Suppression Act would curb states’ ability to regulate agricultural products sold within their borders. The bill was introduced in the Senate by Roger Marshall (R-KS) and the House by Representatives by Ashley Hinson (R-IA) and supported by the National Pork Producers Council. Prop 12 bans sales within California of pork, veal, and eggs from animals whose housing conditions fail to meet certain standards. Clements Food Group, the fifth-largest pork processor in the country, says it won’t support the EATS Act. Some of the larger producers in the country like Tyson Foods and Smithfield have said publicly that they’ll be complying with the law when it takes effect on January 1. *********************************************************************************** Support for Crop Insurance is a Theme at Minnesota Farmfest Farmers and policymakers gathered at Farmfest in Minnesota to discuss the important issues in rural America. One regular topic during the House Ag Committee’s listening session was crop insurance. Farmers asked the elected officials in attendance to protect and strengthen crop insurance as they write the next farm bill. Richard Syverson, President of the Minnesota Corn Growers Association, said, “On behalf of thousands of farm families in this state, as you craft this bill, please do no harm to crop insurance. It’s the cornerstone of the farm safety net.” Bob Worth, president of the Minnesota Soybean Growers, expressed the need to protect and strengthen crop insurance so that younger farmers can afford crop insurance coverage. Without the protection provided by crop insurance, those young farmers might not be able to get the working capital they need to plant another season.” House Ag Chair G.T. Thompson was a part of the panel. *********************************************************************************** Drought Conditions Persist in the Missouri River Basin July runoff in the Missouri River basin above Sioux City, Iowa, was 3.3 million acre-feet, 99 percent of the average. Runoff was near or above average in all reaches except the Fort Peck reach, which was 68 percent of the average. “Soil moisture conditions deteriorated in Montana, North Dakota, and northern South Dakota over the last month and improved across southern South Dakota and into the lower basin,” says John Remus, Army Corps of Engineers Chief of the Missouri River Basin Water Management Division. Precipitation was below normal over most of the upper Missouri River basin last month except for small areas in Wyoming and southern South Dakota. The lower basin saw a mix of above-and-below-normal precipitation. The annual runoff forecast above Sioux City is 28.5-million-acre feet, 111 percent of average. System storage on August 1 was 56.3-million-acre feet, 0.2-million-acre feet above the base of the Annual Flood Control and Multiple Use zone. *********************************************************************************** USGC Host Japanese Delegation to Show Off Ethanol Benefits A Japanese delegation recently visited the U.S. to meet with several key policymakers, U.S. Grains Council Staff in Washington, D.C., and visit corn fields and ethanol plants. As part of the Council’s ethanol promotion efforts in Japan, this program aimed to promote ethanol direct blending and new uses of ethanol, including sustainable aviation fuel. The delegation was able to learn more about U.S. policies and incentives in place related to climate change and ethanol. The delegation was led by Akira Amari, a member of the Liberal Democratic Party and the House of Representatives in Japan. “It was important to make sure that Mr. Amari, an influential policy maker, and a strong biofuel advocate, understands the supply capacity of U.S. corn ethanol to meet the growing demand for direct blending and SAF in Japan,” says Tommy Hamamoto, USGC director in Japan. “He was impressed by our robust corn production and ethanol supply.” *********************************************************************************** USDA Holds Ribbon Cutting at New Texas Lab The USDA’s Agricultural Research Service held a dedication last week for the opening of a newly-renovated Grassland, Soil, and Water Research Laboratory in Temple, Texas. The new building will help scientists continue their mission of developing solutions for more efficient use of soil and water resources, enhancing forage and crop production, and supporting sustainable agricultural production by utilizing modern technology. The new lab will focus on several research projects, including enhancing decision support tools for crop and forage production and watershed management. Other projects include developing improved soil, water, and crop management techniques and developing sustainable crop, forage, and biofuel production systems. The scientists also want to increase rangeland productivity and quality and mitigate global climate change effects on agriculture.. ARS Laboratory Research Leader Dr. Douglas Smith says they’re excited to have the facility ready to meet the research needs to support agricultural producers and decision-makers in the years ahead.”
| Rural Advocate News | Monday August 7, 2023 |
Monday Watch List Markets Back from the weekend, traders will check rainfall amounts and look at the new forecasts. There will also be interest in any news regarding Ukraine. DTN's Digital Yield Tour kicks off Monday with national corn and soybean estimates from Gro Intelligence. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by USDA's Crop Progress at 3 p.m. Canada's markets are closed. Weather A system from the weekend that brought widespread precipitation to the Corn Belt will continue over eastern areas on Monday, exiting to the east overnight. The system left behind a front from Oklahoma to the Southeast which will remain active today as well. Another system moving through the West will get into the Central Plains Monday evening, sparking additional showers and thunderstorms as the week becomes very active.
| Rural Advocate News | Friday August 4, 2023 |
Farm Credit System’s Net Income Drops in 2023 The Farm Credit System’s combined net income decreased 1.4 percent to $1.78 billion for the three and six months ending on June 30, 2023. That’s compared with net income of $1.81 billion and $3.57 billion for the same periods during 2022. “Despite a challenging external environment, the System recognized solid financial results for the first half of 2023,” says Tracey McCabe, president and CEO of the Federal Farm Credit Banks Funding Corporation. “A strong balance sheet and seasoned underwriting professionals continue to position the System to support the needs of our member-borrowers.” Net income increased $200 million or 7.6 percent to $2.8 billion for the second quarter of 2023 and $420 million or 8.1 percent to $5.6 billion for the six months ending on June 30, compared to the same periods last year. The net income increases primarily resulted from higher levels of earnings driven in part by increased loan volume. *********************************************************************************** Mandatory Base Acre Update Creates “Winners and Losers” For more than 20 years and the last four farm bills, farm program payments were based on a farm’s historical planted acreage, or base acres, and not on actual plantings each year. Several agricultural groups and stakeholders are pushing for an update to base acres in the next farm bill. However, Senate Ag Committee Republicans released a report saying a mandatory base acre update would force farmers to update their farm’s base acres to reflect a more recent snapshot of their planting history. The economic effects would be significant and are conservatively estimated to result in an overall loss of $2 billion to farmers and rural communities because of a decline in farm program benefits in fiscal years 2024 to 2033. “Few in agriculture would benefit from a base acre update,” the report says. “It would create winners and losers and would certainly complicate efforts to pass a farm bill.” *********************************************************************************** Legislation Would Create a Permanent Disaster Relief Program Four elected officials from California introduced the “Agricultural Emergency Relief Act” to create a permanent USDA structure that would provide relief to farmers hurt by natural disasters. While Congress routinely provides disaster relief to farmers hurt by natural disasters, the lack of a permanent program has resulted in multiple administrative changes. That can cause confusion for farmers and result in unnecessary delays in implementation. Representative Mike Thompson of California was one of the co-sponsors. He says, “California and many other states have been hit hard by disasters. It’s clear we need a permanent disaster relief program. This bill will help streamline the process for all farmers and growers to receive the relief they deserve.” The legislation would formally authorize a program that already has funding from 2022 and 2023 omnibus bills. It will require farmers who apply for relief payments to purchase crop insurance for two years after receiving a payment. *********************************************************************************** Young Agricultural Leaders Win Awards at Ag Media Summit During the 2023 Ag Media Summit in California, agricultural communications students were honored for their excellence, professionalism, and leadership. The Livestock Publications Council Student Award, sponsored by Alltech, provides travel scholarships for four students to attend the AMS. Following a competitive application and interview process, Carlye (CAR-lee) Winfrey of Texas Tech University won the LPC Forest Bassford Student Award. She’s a senior currently pursuing a bachelor’s degree in Agricultural Communications and minoring in political science. “In my future career, I want to help shape policy to best serve the people of rural America,” Winfrey says. “My degree will allow me to walk through the halls of Congress and share the stories that rural America is so desperately needing to be told.” Jenn Norrie, Alltech’s communications manager for North America and Europe, says, “Alltech is proud to support the next generation of agricultural communicators as the ambassadors and voice of our industry.” *********************************************************************************** House Farm Bill Will Address California’s Prop 12 The House Ag Committee Chair says he plans to use the upcoming farm bill to deal with California’s Prop 12 that was upheld by the Supreme Court. Roll Call says pork producers across the country have said this will lead to patchwork laws between states that will interfere with commerce. At Minnesota’s Farmfest, Glenn “GT” Thompson said the Supreme Court did say in its decision that Congress has the power to address the issues caused by Prop 12. However, Congress has chosen not to deal with those issues in the past. Thompson addressed the audience during a farm bill listening session and said the court let it stand because they’re tired of handling Congressional work. Thompson didn’t specify if the Ag Committee would write its own legislation or use pending legislation to deal with California’s law. Bills have already been introduced in both congressional chambers that would nullify Prop 12. *********************************************************************************** Ethanol Production and Stockpiles Fall Energy Information Administration data shows that ethanol output and inventories dropped to three-week lows during the week ending on July 28. The biofuel production dropped to an average of 1.06 million barrels a day during the week. The EIA report says that’s down from 1.094 million barrels the previous week and the lowest level since July 7. In the Midwest, the largest producing region in the country, output dropped to 1.005 million barrels a day, on average, from 1.02 million a week earlier. The agency said that’s also the lowest point in three weeks. West Coast production was closer to normal levels of 13,000 barrels a day, down from the previous week’s record total of 25,000 barrels. Production on the Gulf Coast, Rocky Mountain region, and East Coast levels were unchanged from the previous week. Ethanol inventories shrank to 22.86 million barrels a day, down from 23.28 million a week earlier.
| Rural Advocate News | Friday August 4, 2023 |
Friday Watch List Markets The U.S. Labor Department will release nonfarm payrolls and the unemployment rate for July at 7:30 a.m. CDT Friday, the only significant reports of the day. Traders will remain focused on the latest weather forecasts and events in Ukraine. Weather A stalled frontal boundary continues to be active from the Central Plains to the Tennessee Valley Friday morning, producing areas of heavy rain and flooding. A system is moving out of the central Rockies and into the Northern Plains and is forecast to produce areas of thunderstorms, some of which may be severe toward the front in the south, as well as bouts of heavy rain which may improve soil moisture, but also lead to potential flooding. As has been the case all week long, areas south of the stalled front continue to be very hot.
| Rural Advocate News | Thursday August 3, 2023 |
USDA Partnership Will Strengthen Rural America’s Workforce The U.S. Department of Agriculture is partnering with the Community College Alliance for Agriculture Advancement to strengthen the nation’s rural workforce. USDA’S Acting Rural Development Undersecretary Roger Glendenning made the announcement this week. Through this partnership, USDA and the Alliance will provide community college students in the Midwest with the resources and skill sets that will help them advance in careers in agriculture and rural economic development. This will help ensure America’s rural communities have the leaders and workforce needed to thrive. “USDA works with rural communities to make sure people everywhere have the resources they need to access quality education and good-paying jobs,” Glendenning says. “That’s why we’re finding new ways to work with our partners to ensure our students have the tools they will need to succeed in their coursework today so they can thrive in their careers tomorrow.” For more information on the partnership, go to rd.usda.gov. *********************************************************************************** Battle Continues Over EATS Act Senator Roger Marshall (R-KS) recently said, “We’re getting the heck beat out of us” on the Ending Agriculture Trade Suppression Act. While Marshall led the Senate introduction, U.S. Representative Ashley Hinson (R-IA) introduced a companion bill in the House. For two months, members of the Organization for Competitive Markets, Competitive Markets Action, the Kansas Cattlemen’s Association, and several other groups and organizations have declared their opposition to the EATS Act. The groups call the measure “an assault on state’s rights, and a gift to Chinese pork conglomerates like Smithfield. They are determined to prevent the measure from marginalizing American family farmers and “opening the floodgates” to China’s takeover of American agriculture. Enacting the EATS Act via the farm bill would eliminate hundreds of state agricultural laws and pave the way for even more foreign intrusion without guardrails. OCM and CMA are spearheading an anti-EATS Act campaign that began in June. *********************************************************************************** RFA Asks EPA to Approve Midwest E15 Petition The Renewable Fuels Association sent a letter this week to Environmental Protection Agency Administrator Michael Regan regarding the E15 RVP Petition from several Midwest Governors. The association wants Regan and his agency to finalize its regulations accepting the petition of eight Midwest governors that would reduce evaporative emissions and allow summertime sales of the lower-cost, low-carbon E15 fuel blend in their states. “Three months have passed since EPA’s public comment period ended, and more than a year has passed since EPA’s statutory deadline to promulgate a final rule approving the Governors’ petition,” wrote RFA President and CEO Geoff Cooper. “And yet, despite strong public support for EPA’s proposal, the agency still has not finalized the rule or publicly provided a schedule for doing so.” He also said the RFA wants the final rule published as soon as possible because the 2024 summer ozone control season is only nine months away. *********************************************************************************** Fertilizer Prices Continue Dropping From Peak Levels in 2022 After reaching historic highs in 2022, prices for major fertilizers have trended consistently lower since then. Farmdoc Daily from the University of Illinois says supply and demand fundamentals, as well as some resolution of the ongoing impacts of the Russia-Ukraine conflict, were contributing factors. Fertilizer prices peaked during the second quarter of 2022. Anhydrous ammonia reached $1,635 per ton in June 2022 and has since declined by almost 47 percent to $870 per ton on July 27. Urea and liquid nitrogen, at $497 per ton and $536 per ton on July 27, have dropped over 50 percent and almost 22 percent, respectively, from their highs reached in 2022. DAP prices have fallen by 20 percent from more than $1,000 per ton in June 2022 to $822 per ton on July 27. Potash prices have fallen over 35 percent to $558 a ton from a peak of $865 in April 2022. *********************************************************************************** Pork Producers Sue Massachusetts Over Animal Housing Law Triumph Foods and a group of Midwest pork producers are suing Massachusetts over its Question 3 law and others that set minimum housing requirements for livestock. The plaintiffs are challenging the constitutionality of the Q3 law and seeking immediate relief from the law before it takes effect on August 24. They also want enforcement stayed until the litigation is complete. The law was approved by voters in 2016, and the plaintiffs say it creates challenges to interstate commerce and places burdensome costs on pork producers outside of Massachusetts. The complaint comes months after the Supreme Court ruled in favor of California’s Prop 12 animal housing regulations. While both California and Massachusetts laws impose housing standards for pork, producers argue Q3 goes further by not allowing the transshipment of whole pork throughout the state. That nuance in the Massachusetts law set off multiple lawsuits filed by restaurant, hospitality, and agriculture groups. *********************************************************************************** Corn Used for Ethanol Down Compared to Last Year USDA data shows corn used to make ethanol and other fuels increased month-to-month in June but were down year-over-year. The amount of corn used to make fuel alcohol was 442.5 million bushels during June, up from 439 million in May. But that was down from the 444.2 million bushels processed during the same month in 2022. The bulk of the corn, at 407.7 million bushels, was used in dry milling, and the rest was wet-milled. Dried Distiller’s Grain production fell six percent on a monthly basis to 390,664 metric tons. The output of DDGs with solubles rose five percent to 1.79 million tons. Processors are expected to use 5.23 billion bushels of corn to produce ethanol in the 2022-2023 marketing year that ends on August 31. Corn use is forecast to rise to 5.3 billion bushels in the next marketing year. Production is projected to be 13.73 billion bushels this year.
| Rural Advocate News | Thursday August 3, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT Thursday, the same time as weekly jobless claims, a report on second-quarter productivity and an update of the U.S. Drought Monitor. U.S. factory orders for June are set for 9 a.m., followed by the Energy Department's weekly report on natural gas storage is at 9:30 a.m. Traders remain attentive to weather and Ukraine. Weather A front that has been stalled out from the Central Plains through the Tennessee Valley all week remains active on Thursday with areas of showers and thunderstorms Thursday morning and likely again later in the day. Some heavy rainfall across the eastern end of the front could produce some flooding. Another system will be moving through the central Rockies, inducing some stronger thunderstorms on the western end of the front Thursday afternoon and evening. Some severe weather and heavy rain will be possible there as well. South of the front it continues to be very hot.
| Rural Advocate News | Wednesday August 2, 2023 |
Farmers Remain Cautiously Optimistic About Ag Economy Farmer sentiment rebounded in June as the Purdue University-CME Group Ag Economy Barometer rose 17 points to a reading of 121. June’s sentiment improvement left the index near the April reading of 123 after a one-month swoon in May. Producers report a more optimistic view of the future as the Index of Future Expectations rose 25 points to 123, while their perception of the current situation was unchanged. The Index of Current Conditions reading, at 116, was the same as in May. This month’s Ag Economy Barometer survey was conducted from June 12-16, 2023. The more optimistic view of the future held by respondents was reflected across the board as the Farm Financial Conditions, Short and Long-Term Farmland Value Expectations, and Farm Capital Investment indices all improved in June compared to May. Looking ahead, one-fourth of corn/soybean producers said they expect farmland cash rental rates to rise in 2024. *********************************************************************************** House Ag Chair Hoping for September Farm Bill Markup The Chairman of the House Agriculture Committee plans to release a draft Farm Bill at the end of August. During a Farm Bill listening session in Maine this week, Representative Glenn GT Thompson told the Hagstrom Report he plans a markup "in mid-September," but only if the leadership has told him what week the bill will be scheduled to come up on the House floor. However, that depends on when House leadership will schedule floor time for the bill. The Pennsylvania Republican told attendees of the listening session, "This farm bill is going to be bipartisan, bicameral, on time and highly effective," adding, "Now the time part, we only control the House, we do not control the Senate, but we are doing our job." The House Agriculture Committee is holding additional listening sessions, including one Wednesday (today) at FarmFest in Minnesota. The current Farm Bill expires at the end of the Fiscal Year, September 30, 2023. *********************************************************************************** USDA Releases 2022 Farm Expenditures Report At the end of July, the Department of Agriculture released the 2022 United States Total Farm Production Expenditures summary. Farm production expenditures in the United States are estimated at $452.7 billion for 2022, up from $392.9 billion in 2021. The 2022 total farm production expenditures are up 15.2 percent compared with 2021 total farm production expenditures. The four largest expenditures totaled $219.6 billion, accounting for 48.5 percent of total expenditures in 2022. These include feed, 18.5 percent, farm services, 10.8 percent, livestock, poultry, and related expenses, 10.1 percent, and labor, 9.2 percent. In 2022, the United States total farm expenditure average per farm is $226,986, up 15.8 percent from $196,087 in 2021. On average, United States farm operations spent $41,917 on feed, $22,864 on livestock, poultry, and related expenses, $24,469 on farm services, and $20,858 on labor. California contributed most to the 2022 United States total expenditures, with expenses of $46.0 billion. Iowa, the next leading state, has $35.7 billion in expenses. *********************************************************************************** Bipartisan Bill Supports Rural Fishing Communities New legislation would allow businesses that directly support the fishing industry to access existing agriculture loan programs. Introduced by Representatives Chellie Pingree, a Maine Democrat, and Clay Higgins, a Louisiana Republican, the Fishing Industry Credit Enhancement Act would allow businesses that provide direct assistance to fishing operations, like gear producers or cold storage, to access loans from the Farm Credit System. Pingree says, “Small businesses that directly help our iconic fishing industry should be able to depend on the Farm Credit System as countless farmers, ranchers, and loggers have for decades.” Higgins adds, “Our legislation provides greater parity for America’s seafood producers and the supporting industries.” Farm Credit Council President and CEO Todd Van Hoose says, “Supporting rural communities is a vital piece of Farm Credit’s mission, and this bill will provide more financing options for our rural fishing communities.” Senators Angus King, an Independent from Maine, and Lisa Murkowski, a Republican from Alaska, introduced a companion bill in the Senate. *********************************************************************************** Draft Guidance Not Enough to Prevent Misleading Labeling, NMPF Tells FDA The National Milk Producers Federation says the Food and Drug Administration’s plant-based beverage proposal “falls woefully short of ending the decades-old problem of misleading plant-based labeling using dairy terminology.” In comments to the FDA on the proposal, NMPF emphasized the importance of transparent product labeling to ensure consumer understanding. NMPF president and CEO Jim Mulhern says, "FDA's draft guidance is an encouraging first step toward promoting labeling transparency in the marketplace, but it's not enough." In its comments, NMPF commended FDA for its acknowledgment of consumer confusion over the nutritional content of dairy imitators. Still, NMPF cautioned FDA to adhere to the law by going through the proper legal process, as outlined in NMPF's Citizen Petition and comments. Because of the voluntary nature of the proposed guidance and FDA's undependable labeling enforcement history, NMPF continues its work in Congress to pass the bipartisan, bicameral DAIRY PRIDE Act, which would direct FDA to enforce its own rules and clarify that dairy terms are for true dairy products. *********************************************************************************** Ethanol Groups Welcome Flex Fuel Fairness Act Ethanol groups welcome new legislation that seeks to level the playing field for vehicles running on low-carbon liquid fuels like ethanol. Senators Pete Ricketts, a Nebraska Republican, and Amy Klobuchar, a Minnesota Democrat, introduced the Flex Fuel Fairness Act last week. The legislation, according to the lawmakers, would provide a meaningful incentive for automakers to manufacture flex-fuel vehicles in addition to battery electric vehicles. Currently, the Biden administration's Environmental Protection Agency has prioritized regulations that favor dramatically increasing production of EVs and forcing them on consumers, according to Senator Rickets, who says, "The Biden EPA has made a mistake and ignored the proven benefits of flex fuel vehicles that can run higher ethanol blends.” Growth Energy CEO Emily Skor says, “This bill would level the playing field, so both electricity and low-carbon biofuels can drive progress toward a net-zero future.” Renewable Fuels Association President and CEO Geoff Cooper adds, “This legislation helps unlock the potential of renewable fuels and puts more tools in the toolbox for automakers.”
| Rural Advocate News | Wednesday August 2, 2023 |
Wednesday Watch List Markets The Energy Department's weekly energy inventories will be out at 9:30 a.m. CDT Wednesday and is the only significant report of the day. Traders continue to keep close watch over the weather and any news regarding Ukraine's grain shipments. Weather A stalled boundary around Missouri is especially active early Wednesday morning with heavy rain and training thunderstorms from southern Iowa and along the Mid-Mississippi Valley. This zone is forecast to be especially active for much of the day, which could bring flooding rains to areas in significant drought and potential severe weather. The boundary will be active across the Central Plains as well.
| Rural Advocate News | Tuesday August 1, 2023 |
Farmer to Farmer Education Act Introduced in Senate Senators recently introduced the Farmer to Farmer Education Act. Senators Ben Ray Luján, a New Mexico Democrat, and Jerry Moran, a Kansas Republican, introduced the bill last week. The legislation would leverage existing technical assistance resources by supporting farmer-led education networks and build capacity for new ones—particularly for communities historically marginalized from existing systems—as a key strategy to increase adoption of conservation practices. As farmers and ranchers are met daily with unique challenges, including unexpected weather, droughts, and floods, they often turn to colleagues to find the right answer. The lawmakers say the bill fills a critical gap in federal programs to support and provide guidance to those networks. Specifically, the bill would authorize the National Resources Conservation Service to enter into cooperative agreements with community-based organizations in each state that can identify and build on established and burgeoning peer-to-peer networks, and/or create new ones. *********************************************************************************** U.S. Importing More Fresh Fruits and Vegetables Imports are vital and increasingly important in ensuring fresh fruit and vegetables are available year-round in the United States. Since the 2008 completion of the North American Free Trade Agreement, U.S. fresh fruit and vegetable imports have increased with few interruptions, according to USDA’s Economic Research Service. Between 2007 and 2021, the percentage of U.S. fresh fruit and vegetable availability supplied by imports grew from 50 to 60 percent for fresh fruit and from 20 to 38 percent for fresh vegetables. The import share increased by more than 20 percentage points during this period for ten crops: asparagus, avocados, bell peppers, blueberries, broccoli, cauliflower, cucumbers, raspberries, snap beans, and tomatoes. The United States-Mexico-Canada Agreement, implemented on July 1, 2020, continues NAFTA's market access provisions for fruit and vegetables. In 2022, Mexico and Canada supplied 51 percent and two percent, respectively, of U.S. fresh fruit imports, and 69 percent and 20 percent, respectively, of U.S. fresh vegetable imports in terms of value. *********************************************************************************** Precision Technology Growth Continues The 2023 Precision Agriculture Dealership Survey shows continued growth in technology to streamline and increase the efficiency of operations, such as in sprayer boom section/nozzle control, turn compensation, fleet management and telemetry. These are possible reactions to input costs and skilled worker shortages, according to Purdue University and CropLife America, organizers of the survey. The enthusiasm continues for applying crop inputs with drones. More dealers will offer drone imagery, but fewer dealers are offering satellite or aerial imagery, and dealers say imagery use is declining on farms. On-farm data continues to be used the most for fertilizer-related decisions and for hybrid/variety selection, but in the last few years, dealers have not increased their use of on-farm data for decision-making. The survey shows 89 percent of dealers use auto guidance on their application equipment/GPS-guided boom section/nozzle controllers on sprayers, which reduce doubling-up and skips, are used at 82 percent of dealerships, and sprayer turn compensation continues to grow, now at 41 percent. *********************************************************************************** USDA Announces Wildfire Protection Grants The Department of Agriculture Monday announced the application period for the Community Wildfire Defense Grant program. Now in its second year, the competitive program is designed to assist at-risk communities, including Tribal communities, non-profit organizations, state forestry agencies and Alaska Native Corporations with planning for and mitigating wildfire risks. Applications will be accepted for 90 days. The announcement comes after $197 million was awarded to 99 project proposals across 22 states and seven Tribes during the first year of funding. The projects directly support the Forest Service’s ten-year strategy to treat up to 20 million acres of national forests and grasslands and 30 million acres of other lands to reduce wildfire risks. Individual grants will fund up to $250,000 to create and update community wildfire protection plans and up to $10 million for associated wildfire resilience projects. The number of projects selected will be determined by available funding, which is up to $250 million. *********************************************************************************** Brent Boydston Elected U.S. Grains Council Chairman The delegates of the U.S. Grains Council elected Brent Boydston, corn, cereal grains, digital agriculture and carbon lead at Bayer Crop Science, as chairman of its Board of Directors. USGC elected Boydston as chair last week during its 63rd Annual Board of Delegates Meeting in Calgary, Canada. Boydston grew up in a family farming operation near Centerville, Kansas, that raised cattle, corn and soybeans. He assumed his current position with Bayer Crop Science in 2016 and has been on the Council’s Board of Directors ever since. Previously, Boydston served as vice president of public policy at the Colorado Farm Bureau and spent more than seven years working on Capitol Hill. In addition to Boydston, Verity Ulibarri of the United Sorghum Checkoff Program was nominated as vice chairwoman and Mark Wilson of the Illinois Corn Marketing Board was elected secretary-treasurer. Jim Reed of the Illinois Corn Marketing Board and Jim O’Connor of the Minnesota Corn Research and Promotion Council were also elected as at-large directors. *********************************************************************************** Fuel Prices Surge as Heat Hits Refinery Output The nation’s average gasoline price soared 16.5 cents in the last week to $3.72 per gallon, according to GasBuddy. The national average diesel price jumped 15.5 cents last week, reaching $3.99 per gallon. GasBuddy’s Patrick De Haan says, “Prices suddenly soared over the last week due to heat-related refinery outages that impacted some of the largest refineries in the country.” The outages come at a time when summer gasoline demand peaks and as gasoline inventories slid to their lowest July level since 2015. Average gasoline and diesel prices are rising at the fastest pace in over a year, but the rise seen in the last week should now start slowing. As we get closer to the peak of hurricane season, any new issues could easily push the national average over $4 per gallon for the first time in 2023, according to De Haan. U.S. retail gasoline demand saw a 0.9 percent fall last week, potentially having peaked for the summer as August brings the return to school for millions.
| Rural Advocate News | Tuesday August 1, 2023 |
Tuesday Watch List Markets Manufacturing reports from the world will roll in overnight and the ISM index of U.S. manufacturing will be out at 9 a.m. CDT Tuesday. Traders will keep track of the latest forecasts and any news regarding Ukraine. NASS's Fats and Oils report will be out at 2 p.m. Weather A front continues to be stalled from the Central Plains to the Tennessee Valley where heavy rain is already falling in Missouri early Tuesday morning. Additional showers and thunderstorms are expected to develop near the front later Tuesday and could become severe with potential for heavy rain as well. The more likely scenario for severe storms occurs farther north as a system moving through Canada brings a front through the Northern Plains. Scattered thunderstorms are likely to develop and could be severe around North Dakota, possibly into northern Minnesota as well.
| Rural Advocate News | Monday July 31, 2023 |
NPPC Releases Q3 Economic Update The National Pork Producers Council released its third-quarter pork industry economic update covering the top pork industry issues, current trends, and marketing issues impacting U.S. farmers. Among the biggest takeaways, California’s Prop 12 creates significant challenges and market uncertainty for pig farmers across the country and has far-reaching implications beyond the pork industry. High production costs continue to be a major challenge to pig farmers’ profitability. The average cost and breakeven levels are nine percent higher than a year ago and have risen 60 percent in the last three years. Hog slaughter and pork production increased an estimated 1.2 percent and 0.3 percent respectively through mid-July 2023. USDA now says pork production will increase 1.4 percent this year, while domestic pork availability is expected to drop 2.5 percent to 49.8 pounds per capita for this year. “Despite the challenges, our pork industry is incredibly resilient,” says Scott Hays, NPPC President. *********************************************************************************** Legislation Would Target Farm Payments Where Needed Most Senators Chuck Grassley (R-IA) and Sherrod Brown (D-Ohio) introduced legislation to rein in abuse of the farm payment system and ensure support goes to those actively engaged in farming. The “Farm Program Integrity Act” would create a hard cap of $250,000 in total commodity support for any one farm operation and require beneficiaries of the system to spend at least 50 percent of each year engaged in farm labor or management. Currently, just ten percent of farm operations receive 70 percent of all yearly farm payment subsidies. “It isn’t right to send bloated farm payments to people who are more familiar with an office chair than a tractor seat,” says Grassley. “This bill brings honesty to the farm payment system and prioritizes farming families over mega-farms.” Brown also says, “Too often, farm program payments have gone to producers who don’t need support or to people who aren’t even involved in farming.” *********************************************************************************** Rabobank Issues Quarterly Hog and Pig Update The latest Rabobank quarterly pork report shows global pork markets are being influenced by sluggish economic growth, weak consumption, and recurrent disease outbreaks. After a strong first half of 2023, global trade is expected to weaken in the months ahead. Despite lower food prices, production costs should remain above pre-COVID levels. The first-half strength was driven by an increase in Chinese imports. Sales in the Philippines saw a major decline. Japan, another major U.S. pork importer, saw flat trade, with a slight shift in sourcing pork from Europe to the U.S. The EU and United Kingdom pork supply dropped in the first four months of 2023, with some countries seeing declines at double-digit rates. Sluggish economic growth has been impacting pork consumption around the world. But pork is still cheaper than beef and premium seafood and more expensive than poultry, so it holds a relatively stable position on consumers’ palates. *********************************************************************************** Farmers, Ranchers Storm Capitol Hill Opposing EATS Act The Organization for Competitive Markets and the Competitive Markets Action led several organizations on a trip to Capitol Hill to oppose the EATS Act. The groups say the Ending Agricultural Trade Suppression Act via the farm bill would eliminate hundreds of state agricultural laws, effectively paving the way for even more foreign intrusion without safety measures in place. The absence of these rules, especially those that support family farms and ranches, would mean Chinese corporations like Smithfield Foods could easily expand into all 50 states. The groups support the OFF Act, or “Opportunities for Fairness in Farming.” The OFF Act would create a system of checks and balances within USDA’s Commodity Checkoff Programs, prohibit checkoffs from utilizing taxpayer dollars to lobby against farmers’ best interests and prohibit disparagement of one product by another. The groups say that practice has long allowed the federal government to pick winners and losers in the marketplace. *********************************************************************************** CNH Industrial Net Income Jumps 35 Percent CNH Industrial reported Q2 consolidated revenues of $6.57 billion, eight percent higher than the same quarter in 2022. The company’s net income totaled $710 million and Adjusted Net Income was $711 million. Net cash used by operating activities totaled $139 million and Industrial Free Cash Flow generation hit $386 million in the second quarter of this year. Net sales for industrial activities hit $5.95 billion, up $341 million compared to the second quarter of last year. The company saw significant improvements in Gross Profit Margin for the Agriculture and Construction segments. A release from the company says, “The CNH Industrial team delivered great results in Q2 as we capitalized on favorable market fundamentals and solid operational execution. Our Agriculture segment set margin records, and for the first quarter in the company’s history, Construction net sales surpassed $1 billion. We are transforming the business and expanding our technology investments to drive growth.” *********************************************************************************** Export Sales of Corn, Soybeans, and Wheat Rise A report says corn, soybean, and wheat export sales all rose week-to-week during the seven days ending on July 20. USDA data says corn sales during the week rose 33 percent from the previous week to 314,000 metric tons, 15 percent higher than the previous four-week average. Mexico was the biggest buyer at 175,900 metric tons. For the next marketing year beginning on September 1, sales hit 335,800 metric tons. Soybean sales were noticeably higher from the previous week and surged 73 percent higher than the previous four-week average. Sales totals for 2023-2024 totaled 544,6000 metric tons, with China as the biggest buyer at 275,000 metric tons, followed by Mexico’s 70,300 metric tons and Egypt at 63,000 metric tons. Wheat export sales of 233,200 metric tons for the 2023-2024 marketing year were up 37 percent from the previous week. However, that total was down 17 percent from the prior four-week average.
| Rural Advocate News | Monday July 31, 2023 |
Top 5 Things to Watch - Temperatures Cool, Heat Effects Linger on Crops, Congress and Markets OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of July 30. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Heat brings feedlot deaths: The weekend saw scattered reports of cattle deaths from feedlots in Nebraska and other sweltering states. Numbers, while devastating locally, seemed to not be at the level to move market prices. We'll monitor those areas. 2. Welcome cooling: Scattered rains late last week and into this week bring a slight cooling to major cropping areas. Monday's USDA weekly Crop Progress Report will give a look at crop condition going into those rains, we'll watch through the week for signs of improvement. For our latest thoughts on weather and markets, 3. Ukraine watch: Markets so far have calmed following the crumbling of the Ukraine grain deal and subsequent shelling of the Odesa grain port. But at some point, the bushels missing in the global grain bin could regain traders' attention, noted DTN Lead Analyst Todd Hultman. 4. Recess lights dumpster fire on House playground: With Congress taking summer recess without passing an appropriations bill, the scene is set for another government shutdown threat come September. It bears watching whether the time back home soothes divisions or whether hanging with the base simply throws gas on this smoldering dumpster fire. 5. Reports to watch: In addition to Monday's Crop Progress report, there is a stream of business and economic news coming throughout the week. On Tuesday the latest world manufacturing indices come out at 9 a.m. CDT. Latest NASS Fats and Oils report hits at 2 p.m. that day. The Energy Department's weekly energy inventories is released at 9:30 a.m. on Wednesday. Thursday morning, we'll watch USDA's weekly export sales report, U.S. weekly jobless claims, second-quarter U.S. productivity and an update of the U.S. Drought Monitor, all due out at 7:30 a.m. The latest (June) report on U.S. factory orders is at 9 a.m.; the U.S. Energy Department natural gas storage numbers hit at 9:30 a.m. Then, Friday sees Labor Department reports on nonfarm payrolls and U.S. unemployment at 7:30. We'll also gear up for the sixth DTN Digital Yield Tour, powered by Gro Intelligence, which kicks off the week of Aug. 7.
| Rural Advocate News | Monday July 31, 2023 |
Monday Watch List Markets Back from the weekend, traders will remain focused on changes in weather and events from Ukraine. As usual, USDA's weekly report of export inspections is set for 10 a.m. CDT Monday, followed by the Crop Progress report at 3 p.m. Monday being the final day of July is also first notice day for August soybean and soy product futures. Weather A frontal boundary has stalled out from the Central Plains to the Tennessee Valley on Monday. South of the front, it remains hot with stressful conditions for both crops and animals. The front will be a focus for showers and thunderstorms throughout the day, as will a weak system sliding south along the Mississippi River. Yet another system moving through the Canadian Prairies will keep that area and the Northern Plains a bit active as well.
| Rural Advocate News | Friday July 28, 2023 |
New Jersey Signs Gestation Crate Legislation New Jersey Governor Phil Murphy signed a bill into law that bans crates used to confine mother pigs and calves. The bill requires the state’s Department of Agriculture to update humane standard regulations allowing the animals to move more freely and turn around. A coalition including the Humane Society of the U.S. and the Animal Legal Defense Fund included over 60 businesses, environmental organizations, and animal protection groups in pressing the case. They said this kind of measure enhances public health, promotes food safety, and reduces animal suffering on “factory farms.” They also point out that numerous scientists and a landmark United Nations report on pandemic risks have noted that the extreme confinement of farm animals is one of the top drivers of diseases transmitted from animals to humans and the spread. “Now, we can properly address both animal misery and public health risks,” says Elissa Frank, N.J. HSUS State Director. *********************************************************************************** Partnership to Combat Misinformation on Animal Agriculture The Animal Agriculture Alliance and the National Institute for Animal Agriculture have partnered to combat misinformation about animal ag. The combination will maximize their areas of expertise to ensure sound scientific information about animal agriculture is getting communicated effectively to key audiences. As part of the relationship, NIAA will serve as a resource for scientific research and educational expertise. The AAA will work to communicate this information to key audiences. “This partnership will give us greater access to technical experts to make sure we’re communicating accurate, science-backed, and expert-supported information to these audiences,” says Hannah Thompson-Weeman, Alliance President and CEO. JJ Jones, NIAA executive director, says, “Working alongside the AAA means we are positioned to better support the animal agriculture community in communicating science while combating misinformation.” The partnership will entail coordinating media responses on technical issues with third-party expertise and hosting regular issue updates with key stakeholders from each organization. *********************************************************************************** Cattle Producers Direct Action on Cell-Cultured Products Members of the National Cattlemen’s Beef Association passed a directive to continue advocating for transparent labeling and inspection of cell-cultured protein products. While NCBA President Todd Wilkinson says cattle producers aren’t afraid of competition, he knows that consumers will continue choosing real high-quality beef over cell-cultured imitations. “Our priority is ensuring that consumers know the difference between real beef and cell-cultured products through transparent and accurate labeling,” Wilkinson says. “We have already been successful at encouraging the USDA to conduct robust inspections and oversight to protect food safety.” The directive was brought forward by the Tennessee Cattlemen’s Association, California Cattlemen’s Association, and the Florida Cattlemen’s Association and passed during the NCBA’s summer business meeting. All policies passed at the meeting get forwarded to NCBA’s general membership for a full vote this fall. Earlier this year, the USDA’s Food Safety and Inspection Service issued two grants of inspection to cell-cultured chicken imitation products. *********************************************************************************** NCGA Videos Tell Farm Bill Stories The National Corn Growers Association released a video series featuring corn growers from around the nation telling their stories about how the farm bill affects each of their operations. The videos were unveiled at Corn Congress, which was recently held in Washington, D.C. The series features four farmers from Pennsylvania, Texas, Kansas, and Ohio. These NCGA members shared the importance of crop insurance, trade, farm safety net programs, and USDA’s conservation programming. Brooke Appleton, NCGA vice president of public policy, says the project’s goal is to help directly communicate with policymakers and their staff about the importance of the farm bill to corn growers and their families. “Nearly half of all House members weren’t around during the 2018 Farm Bill debate,” Appleton says. “We’ve known for some time that new member education would be key to our comprehensive advocacy efforts on the farm bill.” Check out the videos at ncga.com. *********************************************************************************** Biotechnology Organization Lists Farm Bill Priorities The Biotechnology Innovation Organization says the next farm bill offers opportunities to invest in long-term food security, climate resiliency, and growing the national bio-economy. The group has submitted recommendations to the agriculture committees in both chambers of Congress as they work on writing the new legislation. “A farm bill centered on innovation stands to incentivize the adoption of cutting-edge technologies and practices, resulting in benefits to the environment and rural economies,” says Beth Ellikidis, BIO’s vice president of agriculture and environment. Among their recommendations, they say they’d like increased funding for the Biobased Markets or BioPreferred Program, which directs federal agencies to increase their biobased and renewable product purchases. They’d like to see Congress increase funding and make administrative improvements to the federal program to help build or retrofit facilities to produce advanced biofuels, renewable chemicals, and other biobased products. Among several other recommendations, BIO wants streamlined regulations for biotechnologies. *********************************************************************************** House Bill Would Help Farmers and Ranchers Combat Drought Congresswoman Yadira (Yah-DEER-ah) Caraveo (Care-ah-VEY-oh) (D-CO) introduced a bill that would help family farmers and ranchers fight drought. The Voluntary Groundwater Conservation Act gives farmers and ranchers the flexibility they need to protect groundwater sources while also keeping agricultural lands in production under a new voluntary groundwater easement program. The legislation comes as aquifers in the Western U.S., a crucial source of water for rural communities and farmers, are in decline. The bill creates a new Groundwater Conservation Easement Program at USDA to encourage voluntary, compensated reductions in groundwater consumption on agricultural land and advance local, regional, or state groundwater management goals. Additionally, it will guarantee long-term management flexibility for a producer to continue farming and choose how they reduce water use, as long as they conserve the amount they’ve committed to reducing. Producers would also get paid based on the market value for the water right instead of per acre.
| Rural Advocate News | Friday July 28, 2023 |
Friday Watch List Markets The U.S. index of personal consumption expenditures, an inflation gauge for June, is due out at 7:30 a.m. CDT Friday, the same time as U.S. personal incomes and consumer spending for June and the Labor Department's employment cost index for the second quarter. The University of Michigan's final index of consumer sentiment for July follows at 9 a.m. For grain traders, weather and events in Ukraine remain high on the list of interest. Weather Heat continues to envelop most of the U.S. on Friday, stressing areas with inadequate moisture. But the northern edge of the heat continues to be a good place to produce showers and thunderstorms. That is especially true with a cold front across the Northern Plains and Upper Midwest slowly sagging southward. Strong to severe thunderstorms are expected this afternoon and evening in and around Iowa and extending east through the southern Great Lakes in a couple of waves. Any rainfall will be welcome to limit the effects of the heat during a critical time for corn and soybean development.
| Rural Advocate News | Thursday July 27, 2023 |
USDA: Food Inflation Mostly Lower in 2023 Compared to 2022 Retail food prices increased 4.8 percent in the first six months of 2023, lower than the rate of midyear inflation in 2022, of 8.2 percent. USDA’s Economic Research Service reports the 20-year average for midyear inflation from 2002 to 2021 was 1.6 percent. All food categories except for sugar and sweets experienced smaller price increases through the first half of 2023 compared with the same period in 2022. Prices for eggs increased the most, 13.7 percent, so far in 2023, followed by fats and oils and cereals and bakery products. All food categories increased in price in the first six months of 2023 compared with 2022, but the increases for meats, fresh fruits, fish and seafood, and fresh vegetables, were below their historical average price increases. Inflationary pressures and trends differ by food category. Prices will continue to change during the remainder of 2023, according to USDA, and may affect the annual inflation rate. *********************************************************************************** Global Shocks Disproportionately Hurt Farmers Global shocks over the past few years have created an unprecedented “polycrisis” that has disproportionately hurt small-scale farmers and people living in food-deficit countries. The data comes from a new report commissioned by Farm Journal Foundation. The COVID-19 pandemic, conflicts including the Russia-Ukraine war, and climate change have created far-reaching impacts across global food systems, affecting food, fertilizer, feed, fuel, and financing available to producers. The resulting polycrisis has left humanity vulnerable to future “black swan” moments that could have even more severe and far-reaching consequences for global food supplies. One of the researchers says, “Already, millions of smallholder farmers and their families were teetering on the edge of survival due to long-term structural challenges, and this polycrisis has pushed countless into disaster.” To alleviate global food insecurity, the report says the U.S. should invest more in international agricultural research and innovation. More research is needed across climate change adaptation and mitigation, soil health and nutrient management, crop diversity and nutrition, access to markets and finance, supply chain infrastructure, and local capacity building. *********************************************************************************** Ag Groups Reject Anti-checkoff Legislation Agriculture checkoff groups jointly announced opposition to legislation they say attacks commodity checkoff programs. An Amendment by Representative Victoria Sparts, a Republican from Indiana, would prohibit USDA from using any tax dollars to administer commodity Checkoff programs. The National Cattlemen's Beef Association, American Soybean Association, National Pork Producers Council, and National Milk Producers Federation, along with the Indiana Beef Cattle Association, jointly voiced opposition to the effort. NCBA Policy Division Vice Chair Tim Schwab, an Indiana cattle producer, says, "Representative Spartz's amendment targets programs like the Beef Checkoff and is a direct attack on America's farmers and ranchers." The groups say the legislation is "frivolous" as "no taxpayer dollars are being used to administer Checkoff programs." USDA oversees 22 commodity Checkoff programs that boost demand for products like beef, eggs, lamb, cotton, blueberries, honey, mangos, peanuts, mushrooms, watermelons, dairy, cotton, popcorn, and even Christmas trees. Farmers and ranchers invest in these programs, and that funding supports agricultural research and promotional efforts. *********************************************************************************** Growth Energy Sides with EPA in Lawsuit Growth Energy recently filed an amicus brief in the U.S. Court of Appeals for the District of Columbia Circuit in The San Antonio Refinery, LLC, v. U.S. Environmental Protection Agency. The case pertains to a group of refineries seeking to avoid complying with the Renewable Fuel Standard, which requires oil refiners to blend a specific amount of biofuels into their fuel each year. The petitioning refineries allege that the EPA's "Alternative RIN Retirement Schedule for Small Refineries"--an adjustment made to allow refineries to meet their RFS obligations over an extended period of time--did not go far enough and should have allowed the refineries not to comply with the RFS at all. Growth Energy's amicus brief reiterates the fact that the oil industry continues to look for ways to avoid complying with the RFS. Growth Energy CEO Emily Skor says, "The oil industry should stop playing the victim and get on board with the most successful climate policy enacted to date." *********************************************************************************** USDA Continues Field Evaluation of Oral Rabies Vaccine USDA’s Animal and Plant Health Inspection Service Wednesday announced it will continue field evaluation of the oral rabies vaccine bait ONRAB in eight states. The effort is part of a larger-scale rabies prevention effort and will assess distribution methods and effectiveness in raccoons, skunks, and other wildlife. Beginning in late July, APHIS and cooperators will distribute approximately 3.5 million vaccine baits in parts of Vermont, New Hampshire, Maine, New York, Ohio, Pennsylvania, and West Virginia to test the immune effects in targeted wildlife. During October, APHIS also will distribute vaccine baits in parts of Tennessee. The vaccine bait is a blister pack filled with the vaccine and coated with a sweet attractant. When an animal bites into one of the baits, it will release the vaccine into their mouth and, with an adequate dose, develop immunity to rabies. Humans and pets cannot get rabies from contact with the bait but are asked to leave the bait undisturbed if they encounter it. *********************************************************************************** USDA Launches Pilot to Increase Affordable Homeownership on Tribal Lands USDA Wednesday announced it is launching two pilot programs to increase affordable homeownership opportunities for people on Tribal lands. USDA Rural Development Acting Under Secretary Roger Glendenning says, "The assistance I'm announcing today will help people across this nation have the resources they need to build, purchase or repair homes in Tribal communities." USDA is launching the Tribal Property Valuation Pilot Program. It provides approved lenders the opportunity to obtain desktop appraisals for mortgage transactions on Tribal land. This program will help decrease the cost and eliminate potential inaccuracies of appraisal reports completed on properties located on Tribal land. The Department is also launching the Tribal Rehabilitation Pilot Program to help people remain in safe and improved housing on Tribal lands and improve their quality of life. Many homes on Tribal lands have been passed on from one generation to the next and need renovations to make them safe and bring them up to current codes. Funds under this program may be used to finance repairs to these homes.
| Rural Advocate News | Thursday July 27, 2023 |
Thursday Watch List Markets USDA's weekly export sales will be released at 7:30 a.m. CDT Thursday, the same time as weekly jobless claims, U.S. durable goods orders for June, a report on second-quarter U.S. GDP and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage follows at 9:30 a.m. Weather A hot ridge continues to dominate the U.S. with widespread heat and humidity causing stress to anything living outside. The northern edge of the ridge continues to be an active place with thunderstorms expected to develop across the Corn Belt, some of which may be significantly severe across the Upper Midwest Thursday afternoon and evening. A cold front has worked itself through Canada and will bring relieving temperatures from north to south in the coming days.
| Rural Advocate News | Wednesday July 26, 2023 |
USDA Introduces Data to Show Crop Rotation Patterns The Department of Agriculture Tuesday unveiled a geospatial product called Crop Sequence Boundaries that offers national-scale visual crop rotation data for the first time. Crop Sequence Boundaries, or CSB technology, is a cutting-edge map of agricultural fields that provides crop acreage estimates and historical planting decisions across the contiguous United States. The open-source product uses satellite imagery and other public data to allow users to analyze planted U.S. commodities, enhancing agricultural science and research and providing producers an innovative resource to help make farming decisions. The new tool was developed by USDA's National Agricultural Statistics Service and Economic Research Service, two of the department's statistical scientific research agencies. CSB incorporates technological advances in satellite imagery and high-performance cloud computing with Google Earth Engine. It is one of several tools that NASS and its partners have developed to support agricultural analyses and make data more accessible and valuable to the public. Access CSB at nass.usda.gov. *********************************************************************************** USDA Announces Emergency Rural Health Care Grants The Department of Agriculture Tuesday announced Emergency Rural Health Care Grant recipients. Deputy Secretary Xochitl Torres Small made the announcement in Charlottesville, Virginia. The funds will expand access to health care for more than five million people living in 39 states and Puerto Rico. Torres Small says, "USDA's Emergency Rural Health Care Grants are helping strengthen rural America's health care infrastructure to build for the future." USDA is awarding $129 million to improve healthcare facilities in rural towns nationwide. These grants will help 172 rural healthcare organizations expand critical services. The investments will help regional partnerships, public bodies, nonprofits and Tribes solve regional rural healthcare challenges. For example, in the Midwest, Southern Illinois Hospital Services is partnering with local healthcare organizations to build an in-patient psychiatric unit to address a regional need to expand access to mental healthcare services for people in Southern Illinois. Find a list of grant recipients at USDA.gov. *********************************************************************************** U.S. Egg Production Increased in June United States egg production totaled 9.08 billion during June 2023, up four percent from the same time last year. USDA’s monthly Chicken and Eggs report shows production included 7.78 billion table eggs, and 1.3 billion hatching eggs, of which 1.2 billion were broiler-type and 95.8 million were egg-type. The average number of layers during June 2023 totaled 387 million, up five percent from last year. June egg production per 100 layers was 2,348 eggs, down one percent from June 2022. Total layers in the United States on July 1, 2023, were 386 million, up five percent from last year. The 386 million layers consisted of 317 million layers producing table or market-type eggs, 65.0 million layers producing broiler-type hatching eggs, and 3.69 million layers producing egg-type hatching eggs. Rate of lay per day on July 1, 2023, averaged 78.5 eggs per 100 layers, down one percent from July 1, 2022. *********************************************************************************** Bayer Lowers Outlook on Reduced Glyphosate Sales The Bayer Group adjusted its full-year outlook for 2023 downward this week, mainly due to a significant further decline in sales of glyphosate-based products. For full-year 2023, Bayer now anticipates sales of between 48.5 billion and 49.5 billion euros, or roughly $54 billion in U.S. funds. The company also adjusted its forecast for core earnings per share to between 6.20 and 6.40 euros, which was previously forecasted at 7.20 to 7.40 euros. Bayer already guided towards the lower end of its Group sales and earnings forecast for this year. Further price declines and lower volumes due to channel de-stocking, especially for glyphosate-based products, as well as adverse weather conditions, have increased pressure. Based on the anticipated market development, in particular with respect to the glyphosate business, Bayer also expects to record a goodwill impairment of approximately 2.5 billion euros. This will result in negative Group net income of approximately two billion euros for the second quarter of 2023. *********************************************************************************** AFIA Accepting Nominations for Friend of Pet Food Award The American Feed Industry Association is now accepting nominations through August 28 for its annual Friend of Pet Food Award. Launched in 2019, the award recognizes individuals who have made significant contributions to support the growth of the pet food industry. Louise Calderwood, AFIA director of regulatory affairs, says the award “recognizes the tireless efforts of those committed to ensuring the well-being and happiness of our furry friends through cutting-edge nutritional discoveries.” An ideal nominee will be currently employed and active in the pet food industry or an associated area, such as new product development, transportation, regulatory, academia, media or promotion. There is no restriction by company or industry affiliation, or the function performed by the nominee. The award winner will be invited to attend the 2024 AFIA Pet Food Conference , which is being held in conjunction with the International Production & Processing Expo in Atlanta, Georgia, in January. To nominate someone, visit afia.org. *********************************************************************************** RFA Safety Programs Win National Awards The Renewable Fuels Association’s nationally recognized safety programs have been honored with their 11th consecutive National Achievement Award from the Transportation Community Awareness and Emergency Response, a national hazardous materials safety coalition. RFA's Director of Safety and Technical Programs, Missy Ruff, received an Individual Recognition Award for her efforts. More than 12 years ago, RFA created comprehensive training programs for first responders and other stakeholders on the topics of ethanol safety and emergency management. RFA President and CEO Geoff Cooper says, "The ethanol industry continues to maintain an impeccable safety record, which is a direct result of RFA's ongoing safety efforts." In 2022, more than 1,200 attendees were trained via 37 training opportunities supported by RFA. Since its inception in 2010, RFA's safety program has been responsible for training over 15,000 individuals and conducting over 400 training sessions and events. RFA has trained individuals from all 50 U.S. states and 40 other countries.
| Rural Advocate News | Wednesday July 26, 2023 |
Wednesday Watch List Markets U.S. new homes sales will be out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly energy inventories at 9:30 a.m. The Federal Reserve announcement is scheduled at 1 p.m., followed by a press conference with Fed Chairman Powell. Traders remain focused on the latest weather forecasts and on Russia's attacks on Ukraine. Weather A system moving through Canada is providing enough energy across the northern Corn Belt for thunderstorm development early Wednesday from Minnesota into Wisconsin. A little disturbance with these thunderstorms will continue eastward Wednesday, which may turn into more severe clusters across the Great Lakes later in the day. Additional storms may develop in the Northern Plains and Canadian Prairies as well. All of this activity is coming on the northern end of a ridge of heat that continues to spread throughout the U.S. with significantly hot temperatures.
| Rural Advocate News | Tuesday July 25, 2023 |
Legislation Would Exempt Farms From Emission Reporting A group of lawmakers last week introduced legislation to exclude reporting of routine emissions from livestock farms to state and local emergency response authorities. The National Pork Producers Council supports the legislation. Pork producers and other livestock industries have engaged with federal and state regulators for decades over permitting and reporting of air emissions. This engagement has included both the air consent agreements that many producers signed, exempting them from having to file emergency reports to first responders. In 2018, Congress permanently exempted livestock farmers from having to report emissions under the Superfund law to the U.S. Coast Guard’s National Response Center. At the same time, EPA exempted those same farms from making similar reports to state and local first responders. Following litigation, the Biden Administration agreed to re-open that rulemaking to reconsider the exemption from the emergency release reporting rule. The new legislation would clarify that the 2018 Farms Act, and EPA’s prior regulations, were correct and that livestock farms should not be required to inundate local fire departments with emission reports. *********************************************************************************** USDA Invests in Research, Extension and Education at 1890 Land-grant Universities The Department of Agriculture announced Monday an investment of more than $33 million to support capacity-building efforts at 1890 Land-grant Universities. The investment, administered through USDA’s National Institute of Food and Agriculture, will support 82 research, Extension, and education projects across the nation’s 19 Historically Black Colleges and Universities designated as 1890 Land-grant Universities. The projects are part of NIFA’s 1890 Capacity Building Grants Program, which is designed to build capacity for teaching, research, and Extension activities. Eligible institutions are receiving funding for a range of activities, including curriculum design, materials development, faculty development, student recruitment and retention, and Extension program development support. Research investments will strengthen the quality and diversity of the nation’s higher-education workforce, bolster research and knowledge delivery systems, and equip 1890 Land-grant Universities with resources needed to better address emerging challenges and create new opportunities. All 19 eligible 1890 Land-grant Universities will receive funding through the program. *********************************************************************************** NCGA Elects Corn Board Delegates Delegates attending the National Corn Growers Association’s Corn Congress last week elected four farmers to serve on the organization’s Corn Board. The leaders will take office October 1, the start of NCGA’s 2024 fiscal year. The new board members are Troy Schneider of Colorado, Kelly Nieuwenhuis (new-in-house) of Iowa and Bill Leigh of Illinois. Current board member Jed Bower of Ohio was re-elected. All four candidates were elected to three-year terms. NCGA Nominating Committee Chairman Chris Edgington says, “This year’s Corn Board candidates brought impressive records of service to their fellow farmers." The NCGA Corn Board represents the organization while directing policy and supervising day-to-day operations. Board members represent the federation of state organizations, supervise the affairs and activities of NCGA in partnership with the chief executive officer and implement NCGA policy established by the Corn Congress. Members also act as spokesmen for the NCGA and enhance the organization's public standing on all organizational and policy issues. *********************************************************************************** Farmers Mostly Use Manure Sources from Their Own Operations Farmers who utilize manure as a fertilizer mostly get the aromatic livestock byproduct from their own operations. New data from USDA's Economic Research Service shows most manure applied to U.S. cropland, 78 percent, comes from animals raised on the same operation. Meanwhile, 14 percent is purchased, and eight percent is obtained at no cost from other animal operations. In 2020, manure was applied to about 8 percent of the 240.9 million acres planted to 7 major U.S. field crops. For most crops, farmers use manure that either comes from their own farm or at no cost from other farms. However, cotton and peanut producers are the most likely to purchase manure, typically from poultry growers. Among all animal manure types, poultry litter has the highest nutrient content, making it less costly to transport. Animal producers who apply their operations’ manure to their own crops account for a high proportion of manure used on oats, corn, and barley crops, followed by soybean and wheat. *********************************************************************************** California Consumes Nearly All U.S. Renewable Diesel California accounts for nearly all renewable diesel consumption in the United States, according to data released last week by the U.S. Energy Information Administration. California's consumption of renewable diesel was more than eight times the amount produced there in 2021. Instead, most of California’s renewable diesel was produced in other states or was imported. California’s renewable diesel consumption grew substantially after its Low Carbon Fuel Standard went into effect in 2011. Between 2011 and 2021, consumption grew from one million barrels to 28 million barrels per year, over 18 times its original volume. Six states—Louisiana, North Dakota, California, Wyoming, Washington, and Kansas—accounted for all renewable diesel production in the United States in 2021. Many of the plants in the other states have exclusive agreements to send all of the renewable diesel they produce to distributors in California. U.S. renewable diesel production capacity could more than double by 2025, boosting domestic production. *********************************************************************************** Gasoline Supply at Lowest Level Since 2015 The nation's average price of gasoline increased 2.1 cents last week to $3.55 per gallon. The national average diesel price increased 2.7 cents in the last week and stands at $3.83 per gallon. GasBuddy's Patrick De Haan says, "It's been a remarkably quiet summer for gas prices, which have been far less active than normal." The national average gas price has remained in the same ten-cent range since April. The rally in oil prices has been sustained into a fourth straight week, with refined products joining in with oil to show impressive strength, with the last week seeing a sharper upside than previous weeks. U.S. retail gasoline demand saw a 0.6 percent rise last week as demand pushed higher into late July, typically when summer demand peaks. Diesel prices at the top ten percent of stations in the country average $4.90 per gallon, while the bottom ten percent average $3.30 per gallon.
| Rural Advocate News | Tuesday July 25, 2023 |
Tuesday Watch List Markets An index of U.S. consumer confidence in July is set for 9 a.m. CDT Tuesday. The Federal Reserve begins a two-day meeting Tuesday that is expected to result in a quarter-percent increase on Wednesday afternoon. USDA's monthly cold storage report will be out at 2 p.m. CDT. Traders remain fixated on the latest weather developments and events from Ukraine. Weather A dome of high temperatures continues to expand and intensify across the U.S. on Tuesday. On the northern edge of the heat, a system going through Canada will make for some showers across the Northern Plains and into the Upper Midwest, some of which may be severe and lessen the impact of the increasing heat.
| Rural Advocate News | Monday July 24, 2023 |
Milk Producers React to USDA Announcement on FMMO U.S. dairy farmers applaud the USDA for moving forward by including the full scope of the National Milk Producers Federation proposal on the Federal Milk Marketing Order system, which the agency is in the process of modernizing. The recognition of National Milk’s consensus-based leadership allows the industry to continue the momentum for the changes achieved so far. Each piece of the proposal - from returning to the “higher-of” Class One mover as soon as possible to updating both Class One price differentials and manufacturing cost allowances - has been crucial toward building that consensus. “All the components of our plan are critical to a successful update to this important program,” says NMPF Board chair Randy Mooney. “There is still a long journey ahead toward a modernized federal order system that works better for farmers, but NMPF is ready.” The Federation is excited to help lead the industry toward solutions that work for everyone. *********************************************************************************** Senate Bill Would Bring Transparency to Foreign Land Purchases Senators Tammy Baldwin (D-WI) and Chuck Grassley (R-IA) introduced bipartisan legislation to increase the transparency and oversight of foreign ownership in America’s agricultural industry. The “Farmland Security Act of 2023” builds on the “Farmland Security Act of 2022” by ensuring that all foreign investors, including “shell companies,” who buy American agricultural land report their holdings and strengthens the penalties for those who evade the required filing. It also invests in research to better understand the impact foreign ownership of American farmland and agricultural production capacity has on our domestic food supply, family farms, and rural communities. Current reporting shows that foreign-owned agricultural acreage has increased in recent years. However, the data that’s been collected is incomplete or inaccurate. The new legislation will direct USDA to conduct an annual compliance audit to ensure accuracy and provide annual training to state and county-level USDA staff on identifying non-reporting of foreign-owned agricultural land. *********************************************************************************** CBO Director Responds to Complaints on Farm Bill Numbers House and Senate Agriculture Committee leaders recently sent a letter to the Congressional Budget Office complaining about the slow response to their requests for scores on farm bill provisions. CBO Director Phillip Swagel said in a letter that they have already responded to more than 1,000 requests, and they expect to respond to hundreds more in the weeks ahead. The Fencepost says the leaders’ letter strongly encouraged the Budget Committees in both Chambers of Congress to use all their available resources to reorganize the CBO staff to prioritize farm bill requests. They also encouraged the office to hire or contract additional staff or find qualified professionals outside the agency to help. However, Swagel says, “Securing additional personnel from outside the agency isn’t practical at this point as it would delay work on the current legislation. It would take too much time to bring them up to speed on CBO’s procedures.” *********************************************************************************** U.S. Providing $250 Million to Ukraine Farmers U.S. Agency for International Development Administrator Samantha Power says the U.S. will provide another $250 million in aid to Ukraine’s agricultural producers. Feedstuffs says the money will get distributed through AGRI-Ukraine, an initiative that began in 2022 to help support Ukraine’s agricultural exports and to combat global food security issues made worse by Russia’s invasion of Ukraine. Power says multiple groups are working together to keep Ukraine farming and producing commodities. USAID has already been helping Ukraine’s farmers store the grain they can’t sell. It’s also working with private sector partners to provide financing, seed, and fertilizer. Power says the additional investments should help Ukraine’s producers to plant new crops even if they can’t sell grain from their previous harvests. “These investments that the U.S. and partners are making will not only help Ukraine win the war but also help them to build a much more resilient future,” Power adds. *********************************************************************************** Students Hit Capitol Hill A select group of nine college students from around the nation completed the Ag Voices of the Future Program July 10-13 while in Washington, D.C. The program, sponsored by the American Soybean Association and Valent, U.S.A., gives students an inside look at how agricultural policies are made in the nation’s capital. The class was held in conjunction with ASA’s summer board meeting and other soy events. “It’s important that young people have an understanding of the significant policy issues that directly impact the productivity and economic well-being of our farms and the soybean industry,” says ASA President Daryl Cates. “ASA appreciates Valent’s support of this valuable program that helps to cultivate future voices for agriculture in D.C." The three-day program was busy with multiple activities and networking opportunities. Students heard from ASA and Valent’s industry and government affairs representatives and a House member about their current position and past career experience. *********************************************************************************** USDA Investing in Urban Agriculture, Food, and Market Access USDA announced a series of investments that will increase market access and revenue streams for producers while strengthening the food system. The investments will also give consumers better access to locally-grown foods and healthier choices. Ag Secretary Tom Vilsack and Deputy Secretary Xochitl (So-CHEEL) Torres Small made the announcement in Philadelphia. “The USDA announced 17 new Urban Service Centers and ten new urban county committees, as well as approximately $10.7 million in investments in Farm to School and an expansion of the Healthy Food Financing Initiative,” Vilsack says. “It also includes $30 million in funding availability for the new Local and Regional Healthy Food Financing Partnerships Initiative.” The secretary also says these investments will allow families and farmers alike to benefit from healthier food produced close to home. “Families should have access to locally grown food wherever they live, and farmers should have profitable markets regardless of zip code,” says Torres Small.
| Rural Advocate News | Monday July 24, 2023 |
Top 5 Things to Watch - Heat Domes, Missiles and Wheat Tour Lead Stories This Week 1. Missiles Fall, Temperatures Climb: The drivers in grain markets short-term are the oncoming heat (see below) and Vladimir Putin's ongoing onslaught of Ukraine grain ports. That puts pressure on overland movement of grain out of Ukraine through neighboring countries, and the storage backlog will eventually influence how much farmers there can plant. . 2. Weather Patterns Quiet, Hot: Recent rain systems, and the active weather pattern that spawned them, have improved soil moisture conditions in a lot of areas. But the patterns, they are a changing, says our Ag Meteorologist John Baranick. A high-pressure dome and less active patterns will bring heat and dryness. The critical question is did rains bring enough soil moisture reserves to help crops get through the coming heat, which could generally last through the end of July and into August? There is a lot of pollination, grain fill and pod set going on as things heat up. Baranick notes the predicted conditions are pushing the boundaries of current weather models; some have spit out temperature possibilities above 110 Fahrenheit in the western and central Corn Belt. It's unlikely temps will get that high in any sustained way, Baranick adds, but it will be unpleasant. Stay hydrated, take breaks out of the sun and heat, and pay special attention to livestock and those that can't take care of themselves 3. Spring Wheat Tour: We'll have daily coverage of the 2023 Hard Spring Wheat and Durum Tour. DTN Crops Editor Jason Jenkins will be on the tour, with his reports starting Tuesday evening. This year's tour, sponsored by the Wheat Quality Council, will cover North Dakota and Western Minnesota. It will not include South Dakota due to low wheat acres there. Final yield predictions will be out mid-day Thursday. 4. Preparing for 2023 DTN Digital Yield Tour: The sixth DTN Digital Yield Tour, powered by Gro Intelligence, kicks off Aug. 7. In the weeks ahead, DTN reporters and editors will be out gathering on-the-ground information on crop conditions as we prepare to learn where Gro's satellite-driven yield models put the 2023 crop. This year we'll also get additional dirty-boots data from our friends at Farmers Independent Research of Seed Technologies, or FIRST. 5. Economic News This Week: We'll cover the latest USDA Crop Progress reports, hitting Monday afternoon. Wednesday will see news on latest U.S. new homes sales out at 9 a.m. CDT, followed by the Energy Department's weekly energy inventories at 9:30 a.m. The latest Federal Reserve announcement is scheduled at 1 p.m., followed by a press conference with Fed Chairman Jerome Powell. Thursday sees USDA's weekly export sales report, U.S. weekly jobless claims, durable goods orders for June and an update of the U.S. Drought Monitor, all due at 7:30 a.m. The U.S. Energy Department's natural gas report follows at 9:30 a.m. Friday brings a collection of reports to help gauge inflation: At 7:30 a.m. we'll see the U.S. index of personal consumption expenditures for June, the report on U.S. personal incomes and consumer spending for June and the Labor Department's employment cost index for the second quarter. The University of Michigan's index of consumer sentiment for July hits at 9 a.m.
| Rural Advocate News | Monday July 24, 2023 |
Monday Watch List Markets Back from the weekend, traders will be paying close attention to the latest weather reports and any news from the Black Sea region. USDA's weekly inspections report is set for 10 a.m. CDT and will be followed by the Crop Progress report at 3 p.m. Weather A cluster of thunderstorms is moving down the Missouri Valley early Monday and some additional showers and thunderstorms are expected in the Midwest Monday as a ridge of heat over the West spreads eastward. Heat will be stressful this week, but some areas are going to see rain and potential severe weather.
| Rural Advocate News | Friday July 21, 2023 |
USDA Accepts Almost 2.7 Million Acres in CRP The USDA is accepting offers for nearly 2.7 million acres from agricultural producers and private landowners in this year’s Grassland Conservation Reserve Program signup. The program received a record-setting signup of 4.6 million acres in offers. The working lands program allows producers and landowners to continue grazing and haying practices while protecting grasslands and furthering the CRP’s impacts. “This year’s Grassland CRP signup demonstrates the continued popularity and success in voluntary, producer-led, working lands conservation programs,” says Zach Ducheneaux, Farm Service Agency Administrator. “Grassland CRP clearly demonstrates that conservation priorities and agricultural productivity can coexist, complement, and enhance one another.” USDA had to accept fewer acres and a lower percentage of offers than in 2022 because the program has reached its acreage cap. “With the low number of future expiring acres, getting closer to the statutory cap of 27 million acres would hinder the ability to conduct future signups,” Ducheneaux adds. *********************************************************************************** USB Sets Fiscal Year 2024 Budget The 77 people serving on the United Soybean Board approved $191.5 million for the 2024 fiscal year budget. The budget supports research, promotion, and education investment portfolios selected through USB’s Portfolio Development Process. These investments help drive demand for U.S. soy and return value to all U.S. soybean farmers. The total budget also includes execution, oversight, and program support. “I hope U.S. soybean farmers are proud of their checkoff as we pool our resources to improve our reliability and sustainability in delivering our crop to the global marketplace,” says Meagan Kaiser, USB Chair and Missouri farmer. “As we look to next year, we know that soy delivers solutions, and in many cases, it serves as a drop-in replacement to improve our carbon footprint across thousands of products.” She also says it’s important to make significant gains and drive return on investment back to farmers. “The future is bright,” she adds. *********************************************************************************** Animal Ag Alliance Releases Extremism Report The Animal Agriculture Alliance released reports detailing the interconnectedness of the animal rights movement and their tactics targeting animal agriculture. “No matter the animal rights extremist group or the tactics used, they all share the same goal of eliminating animal agriculture and taking meat, dairy, poultry, eggs, and seafood off grocery store shelves and family tables,” says Abby Kornegay, AAA manager of issues and engagement. Almost one-third of all animal rights extremist attacks documented in 2022 targeted farmers and food workers, putting them and the animals in danger. Some of their documented actions against animal ag include 95 vandalism incidents, 70 stolen animals, 60 criminal trespasses, ten arson cases, and nine harassment and intimidation incidents. “Extremists are getting ever bolder in their efforts against animal agriculture, and direct actions at the farm, processing facility, and retail store continue rising,” Kornegay adds. For information about proactive security measures, go to animalalliance.org. *********************************************************************************** Legislation Introduced to Improve Credit for Critical Rural Facilities The Investing in Rural America Act was introduced in the House of Representatives, and the Farm Credit Council reacted positively. “We thank those who introduced the legislation for their commitment to rural communities,” says FCC President and CEO Todd Van Hoose. “This legislation will spur the development of critical facilities in rural communities, such as hospitals, childcare centers, schools, and more.” He also says the bill will facilitate partnerships between Farm Credit, community banks, and other lenders to provide much-needed capital to build, renovate, and modernize rural community facilities. “Those kinds of facilities are critical to the viability of rural communities because they play key roles in improving the quality of life for rural families,” Van Hoose adds. “Yet, many communities lack these essential facilities, while many other facilities need modernization.” Minnesota Rep Michelle Fischbach says one way Congress can support rural communities is by eliminating unnecessary barriers to capital investment. *********************************************************************************** USDA: Cotton Ending Stocks Set to Increase The USDA cotton projections for August-July indicate that global cotton ending stocks will increase by 570,000 bales (0.6 percent) to 94.5 million bales. That’s the second-highest level since 2014-2015. As production exceeds mill use for a second year in a row, world cotton prices are forecast lower than the $1.01 per pound estimated for 2022-2023 and the recent high in 2021-2022 of almost $1.32 per pound. Although the world harvested area is projected to increase two percent, or 600,000 hectares, a projected decrease in the global yield reduces the production estimate year-over-year. Global cotton production is forecast to decrease by 1.1 million bales, or one percent, from 2022-2023 to 116.8 million bales in 2023-2024. The largest gains in the world are expected to come from Pakistan and India. World trade expectations (43.5 million bales) show a considerable increase from 2022-2023, rising with the projected rebound in 2023-2024 global cotton mill use. *********************************************************************************** MN Rep Wins NCGA President’s Award Minnesota Representative Angie Craig is the winner of the National Corn Growers Association’s 2023 President’s Award. She was honored during the organization’s annual Corn Congress summer meeting in Washington, D.C. Tom Haag (HAYG), NCGA President and a Minnesota corn grower, had high praise for the congresswoman. “Whether it’s ensuring that consumers have access to higher levels of ethanol or it’s working to advance corn grower priorities in the farm bill, Craig has been a tireless advocate for growers and is one of our biggest Congressional allies.” Craig, Minnesota’s Second District Representative, says, “My district is home to so many of the corn growers who get food on our tables and fuel in our vehicles. I’m honored to represent them.” Craig has championed many issues important to corn growers. Earlier this year, she joined a bipartisan group of House members in re-introducing a bill that would allow year-round access to E15.
| Rural Advocate News | Friday July 21, 2023 |
Friday Watch List Markets USDA's monthly cattle on-feed inventory and U.S. cattle inventory reports, both for July 1 are due out at 2 p.m. CDT, the only significant reports on Friday. Traders continue to keep close watch on the latest weather developments and happenings in Ukraine. Weather A cold front pressing south through the country will continue to produce areas of showers and thunderstorms, some possibly severe with heavy rain. Fairly comfortable temperatures remain north of the front with largely drier conditions. Some isolated showers may be possible farther north in the Plains.
| Rural Advocate News | Thursday July 20, 2023 |
USDA Partnership to Reduce Anticompetitive Barriers USDA launched a partnership with bipartisan attorneys general in 31 states and the District of Columbia to enhance competition and protect consumers in food and agricultural markets. Through the agreement, this partnership will assist the state attorneys general in tackling anticompetitive market structures in agriculture and related industries that are raising prices and limiting choices for consumers and producers. “Through these cooperative agreements, we can ensure a more robust and competitive agricultural sector,” says Ag Secretary Tom Vilsack. “I’m happy to see that a bipartisan group of states is committed to joining USDA in better protecting the fair and competitive markets that are a critical cornerstone of the American economy.” Areas of focus for the Agricultural Competition Partnership include anti-competitive market structures and practices, as well as price gouging and other anti-consumer practices in food, retail, meat, and poultry processing. Others include a lack of choices for consumers and producers. *********************************************************************************** Methane Emissions Reduction for Beef Cattle Cargill recently partnered with TREES Consulting to develop a new Gold Standard-approved methodology giving beef producers a way to measure methane emissions reductions. The methodology uses feed supplements incorporated into beef cattle diets. The new methodology defines a set of parameters that beef producers can adopt to quantify reductions in methane emissions, a greenhouse gas derived from the digestion process in cattle as well as manure handling. It’s now available for beef producers to quantify, audit, and verify methane reductions, enabling them to register their GHG mitigation projects for Gold Standard Certification. Those verified emissions reductions can be traded in carbon markets, allowing credit purchasers to directly support the projects. “We are committed to finding ways to ensure that producers can get recognized and rewarded for their emissions reduction efforts,” says Margaret Kim, CEO of Gold Standard. For more information about the new methodology, go to Cargill’s “Feeding Intelligence” site. *********************************************************************************** Newhouse Launches ESA Working Group Washington Representative Dan Newhouse, the Congressional Western Caucus, and the House Committee on Natural Resources launched the Endangered Species Act Working Group. The new group will look into how the Endangered Species Act is being implemented by federal agencies, the practical impacts on the American people, how litigation is driving ESA decision-making, and how success is currently defined under the act. The group intends to publish a series of policy recommendations that reform the ESA to the benefit of the American people and species conservation. “It’s clear the ESA desperately needs reform,” Newhouse says. “Not just for the sake of our species, but for the people who are negatively impacted because of its land-use restrictions, impact on property values, and costly permitting requirements.” Hundreds of species are listed under the act, but only three percent have been delisted. “Clearly, something is not working,” says Natural Resources Chair Bruce Westerman of Arkansas. *********************************************************************************** NACD 2023 Summer Conservation Forum Held This Week in ND The National Association of Conservation Districts held the 2023 Summer Conservation Forum and Tours in Bismarck, North Dakota. This summer’s meeting brought together conservation leaders from across the country to discuss emerging natural resource concerns and innovative solutions. The meeting included a grassland conservation and grazing management panel, as well as remarks from Natural Resources Conservation Service Chief Terry Cosby and Farm Service Agency Administrator Zach Ducheneaux. North Dakota Senator John Hoeven spoke about the importance of locally-led conservation, partnerships, and an approach that isn’t one size fits all. “Make the approach fit farmers and ranchers,” he said. NACD President Kim LaFleur emphasized the importance of developing next-generation leaders at all levels and engaging new audiences and partners. The event also gave attendees the opportunity to see conservation in action, including a tour of the Black Leg Ranch. Several other conservation leaders addressed changing natural resource challenges in their regions. *********************************************************************************** Applications Open for Southeast Asia Trade Mission USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an agribusiness trade mission to Malaysia and Singapore from October 30-November 3. The Foreign Ag Service is accepting applications from U.S. exporters wanting to take part in the trade mission. “Malaysia and Singapore are important markets in our efforts to diversify prospects for U.S. food and agricultural exports in Southeast Asia,” Taylor says. “These markets provide both a source of stability for American exports and a tremendous opportunity to further expand U.S. trade in the region.” She also says consumer demand for American products in both countries is on the rise, making this agribusiness trade mission extremely timely. America’s agricultural and related product exports to Malaysia reached $1.13 billion in 2022. U.S. agricultural exports to Singapore grew 190 percent between 2012 and 2022, reaching a record $1.4 billion in 2022. For more information or to apply, go to usda.gov. *********************************************************************************** National FFA Organization Names American Star Finalists The National FFA Organization has announced the 16 finalists for its 2023 top achievement awards. The awards include the American Star Farmer, American Star in Agribusiness, American Star in Agricultural Placement, and the American Star in Agriscience. The American Star Awards represent the best of the best among thousands of American FFA Degree recipients. The award recognizes FFA members who have developed outstanding agricultural skills and competencies by completing a Supervised Agricultural Experience (SAE) program. A required activity, the SAE allows members to learn by doing. Members can own and operate an agricultural business, intern at an agricultural business, or conduct an agriculture-based scientific experience and report the results. Other requirements for receiving an award include demonstrating top management skills, completing key agricultural education, scholastic, and leadership requirements, and earning an American FFA Degree, the organization’s highest level of student accomplishment. For more information about the American Star Awards, go to FFA.org/Stars.
| Rural Advocate News | Thursday July 20, 2023 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. jobless claims and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CDT Thursday. U.S. existing home sales and U.S. leading indicators, both for June are out at 9 a.m. The U.S. Energy Department's report on natural gas storage follows at 9:30 a.m. Traders will continue to pay close attention to the weather and latest events out of Ukraine. Weather A system moving through the eastern Midwest will continue to produce areas of showers and thunderstorms on Thursday, some of which may be severe with wind and hail. The front to the system will be an area to watch for significant severe storms Thursday afternoon and evening across Colorado and Kansas with a significant severe wind threat and heavy rain potential. To the south of the front, heat and humidity continue to be intense.
| Rural Advocate News | Wednesday July 19, 2023 |
Russia Attacks Ukraine Grain Port One day after Russia terminated the Black Sea Grain Initiative, the country attacked Ukraine grain facilities at the Odesa port. Russia terminated the deal following an attack by Ukraine on a bridge in the Crimean Peninsula. The port attacks were in retaliation to the Ukraine attack. The Black Sea grain export deal allowed for the safe transport of grain through the Black Sea by Ukraine. Reuters reports that any attempt to reopen Ukrainian grain shipments without Russia's participation would depend on insurance companies agreeing to provide coverage. Russia could return to the grain deal, but only if its demands are met for rules to be eased for its own exports of food and fertilizer. The country, for now, has not guaranteed the safety of ships in the Black Sea carrying products from Ukraine. Ukraine has invested in other ports, and could shift grain to those, but at a reduced shipping capacity. *********************************************************************************** Ad Hoc Government Payments Caused Farmers to Store More Grain University research shows ad hoc payments result in farmers holding more grain in storage. Published by the University of Illinois’ FarmdocDAILY, the research estimated the impact of the unprecedented surge in ad hoc farm payments from 2018 to 2020 on grain inventories held by farmers. Under the Market Facilitation Program, U.S. farmers received approximately $23 billion during the 2018-19 and 2019-20 marketing years. While USDA designed MFP to avoid distorting farmer planting and production decisions, these payments may still have affected farm decision-making, in particular, the decision to store production after harvest. However, the research estimates the impact of MFP payments on the market-level inventories was modest. Even in the case of soybeans in December 2018, the market and quarter where with the largest impact, U.S. soybean stocks were only 226 million bushels or six percent higher than they would have been in the absence of MFP payments. The conclusion: MFP did impact outcomes relevant to commodity price levels, though any potential market distortion was likely small. *********************************************************************************** U.S. Again a Top Beef Supplier to Japan The United States is again a top supplier of beef to Japan, according to USDA’s Economic Research Service. U.S. market share collapsed in 2004 after a single case of bovine spongiform encephalopathy, commonly referred to as “mad cow disease,” was detected in a cow shipped from Canada to the United States. In response, Japan placed an embargo on all U.S. and Canadian beef products. In 2006, Japan began phasing out the ban on U.S. beef and fully lifted it in May 2019. Over this period, U.S. beef imports rebounded nearly to pre-ban levels, shipping 233,000 metric tons to Japan in 2021. The U.S. is now the second largest supplier of beef to Japan, behind Australia. Recently ratified trade agreements between Japan and these partner countries are expected to contribute to changes in Japan’s market for imported beef. Researchers estimate that by 2033, annual scheduled reductions in Japan’s import tariffs will increase imports of U.S. beef by 27 percent, or $413.8 million, from 2018 levels. *********************************************************************************** AEM Study Shows Environmental Benefits of Precision Agriculture A new study for the Association of Equipment Manufacturers shows the environmental benefits of precision agriculture. The study examined the impact of various technologies on the production of row crops, broad acre crops, roots and tubers, as well as forage. The data overwhelmingly shows that precision agriculture can have a positive environmental impact in all of these areas. Precision agriculture leverages technologies to enhance sustainability through more efficient use of land, water, fuel, fertilizer and pesticides. Essentially, farmers who use precision agriculture technologies use less to grow more, reducing both cost and environmental impact. In consultation with several environmental groups, AEM identified five areas with the most potential to impact the environment. Precision agriculture results in a four percent increase in crop production, seven percent increase in fertilizer placement efficiency, a nine percent reduction in pesticide use, a six percent reduction in fossil fuel use and a four percent reduction in water use. *********************************************************************************** USTR Announces Fiscal Year 2024 WTO Sugar Tariff-Rate Quota Allocations The U.S. Trade Representative’s office Tuesday announced the country-specific and first-come, first-served in-quota allocations of the tariff-rate quotas for imported sugar. The tariff-rate quotas, or TRQs, apply to raw sugar, refined and specialty sugar, and sugar-containing products, for fiscal year 2024, that begins October 1. TRQs allow countries to export specified quantities of a product to the United States at a relatively low tariff, but subject all imports of the product above a pre-determined threshold to a higher tariff. Earlier this month, the Department of Agriculture announced the establishment of the in-quota quantity for raw cane sugar for FY 2024. The in-quota quantity for the TRQ on raw cane sugar for FY 2024 is 1,117,195 metric tons raw value, which is the minimum amount to which the United States is committed under the World Trade Organization Agreement. USTR is allocating the raw cane sugar TRQ of 1,117,195 metric tons raw value, to a set of countries included in the announcement. *********************************************************************************** Hot Summer Means More Natural Gas Consumption The U.S. Energy Information Administration forecasts record-high natural gas consumption in the United States for electricity generation in July and August. The forecast comes as another hot summer increases demand for air conditioning. In its July Short-Term Energy Outlook, EIA expects about four percent more U.S. electricity generation from natural gas in July and August 2023 than in 2022. Natural gas will provide about 46 percent of U.S. electricity for those two months and provide 41 percent of U.S. electricity for the year, according to EIA's forecast. EIA also expects a six percent increase in electricity generation from renewables and a two percent increase in generation from nuclear energy. Also, EIA reduced its forecast for growth in U.S. renewable diesel production from previous forecasts. An EIA spokesperson says, "We still expect significant growth in renewable diesel production, but changes to the Renewable Fuel Standard slightly lower the growth rate in the short term.” EIA expects the United States to produce about 161,000 barrels per day of renewable diesel in 2023, which is a 66 percent increase from 2022.
| Rural Advocate News | Wednesday July 19, 2023 |
Wednesday Watch List Markets A report on U.S. housing starts for June will be out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly energy inventories at 9:30 a.m. Traders continue to pay close attention to the latest weather developments in a summer of volatile pricing for corn and soybeans. Events in Ukraine are also getting attention as summer fighting escalates. Weather A front across the Tennessee Valley and a system moving through the Upper Midwest are producing areas of showers and thunderstorms for Wednesday, under mainly mild temperatures for the Corn Belt. Some stronger storms may be possible from Nebraska into Minnesota and Wisconsin. Heat continues to be in place across the Southern Plains and across the Southeast.
| Rural Advocate News | Tuesday July 18, 2023 |
EPA Denies 26 RFS Small Refinery Exemptions The Environmental Protection Agency has denied 26 Small Refinery Exemption petitions for the Renewable Fuel Standard spanning compliance years 2016-2018 and 2021-2023. The action demonstrates the agency’s continued commitment to ending the backlog of pending SREs. The American Soybean Association welcomed the continued transparent and fair assessment of SREs through more stringent hardship and economic impact requirements. Historically, significant SRE approvals without clear and consistent metrics for evaluation created vast market uncertainty and undermined the intent of the RFS, creating a challenging environment for continued growth in the biomass-based diesel industry. EPA has worked in recent years to develop new parameters for petition approvals that have proven effective at strengthening the RFS. ASA is pleased with this progress and hopes EPA will continue to work with the biofuels industry to implement the RFS as intended. With the finalization of these 26 SRE petition denials, EPA has cut down SRE backlogs significantly, with only two outstanding petitions remaining from compliance year 2018. *********************************************************************************** CoBank: U.S. Economic Slowdown Likely Ahead The U.S. economy continues to defy gravity and remains strong despite lingering inflationary pressures, higher borrowing costs and a barrage of other headwinds. However, looming risks to the economy are increasing in number and size. CoBank's Knowledge Exchange says the full impact of monetary policy actions--raising interest rates, quantitative easing and contracting the money supply--have yet to be felt. Those policy actions, combined with depleted consumer savings, tighter commercial bank lending standards and the persistently inverted yield curve are likely to result in a mild recession by the fourth quarter of 2023. Ag retailers faced a more challenging environment in the second quarter as fertilizer prices continued to fall. Despite an overall slowdown in inflation, ag retailers continued to face rising costs, especially for property insurance. While food manufacturers generally indicate they are back to business as usual in the post-pandemic era, many consumers continue to harbor a crisis-management mentality regarding food costs. *********************************************************************************** Lawmakers Introduce Women in Agriculture Bill Lawmakers recently introduced the Women in Agriculture Act. The legislation would establish a research priority for agriculture machinery and equipment designed to be used by women, and create a funding set aside for childcare facilities in rural areas. The bill also creates a Women Farmers and Ranchers Liaison position at the Department of Agriculture. Although the number of women in the agriculture industry is growing, the majority of tools are designed and manufactured the height, strength and body type of a man. Representative Chellie Pingree, a Democrat from Maine, led the introduction of the bill. She says, “The Women in Agriculture Act provides resources specifically for women farmers and ranchers to level the playing field and work towards a fairer agriculture industry." In 2019, women accounted for 26 percent of the farm labor workforce, a 19 percent increase since 2009. However, farms operated by women earn 40 percent less income compared to male-dominated farms. *********************************************************************************** Deadline July 26 to Apply for Organic Dairy Marketing Assistance Organic Dairy producers have a few days left to apply for Organic Dairy Marketing Assistance from the Department of Agriculture. The Organic Dairy Marketing Assistance Program assists certified organic dairy producers facing unique challenges in recent years, including higher costs attributed to the pandemic and drought conditions across the country. USDA's Farm Service Agency provides financial assistance for a producer's projected marketing costs in 2023 based on 2022 costs. The program provides a one-time cost-share payment, based on marketing costs, on pounds of organic milk marketed in the 2022 calendar year. The financial assistance provides immediate support to certified organic dairy operations during 2023, keeping organic dairy operations sustainable until the markets return to more normal conditions. SDA will invest $104 million in financial assistance to certified organic dairy producers. Organic dairy producers should apply by July 26, 2023, at their local USDA Service Center. *********************************************************************************** U.S. Consumers’ Food Spending Hit Record High in 2022 New data from USDA’s Economic Research Service shows consumer spending on food reached a record in 2022. Real, or inflation-adjusted, annual food spending in the United States increased steadily from 1997 to 2022, except in 2008 and 2009 during the Great Recession and in 2020 during the Coronavirus pandemic. Food spending includes food at home, described as food intended for off-premises consumption from retailers such as grocery stores, and food away from home, described as food purchased at outlets such as restaurants or cafeterias. Total food spending increased 70 percent from 1997 to 2022. During this period, food at home spending increased at a slower rate, 53 percent, than for food away from home at 89 percent. Total food spending increased on an annual basis by 7.2 percent in 2021 and 4.5 percent in 2022. Food away from home spending increases, 19 percent in 2021 and eight percent in 2022, drove overall increases in food spending. *********************************************************************************** MGP Ingredients to Close Industrial Alcohol Distillery MGP Ingredients last week announced the planned closure of its industrial alcohol distillery expected in January 2024. The facility in Atchison, Kansas, produces grain neutral spirits, industrial alcohol products and related co-products. The decision to close this distillery is consistent with the company’s plan to address profitability headwinds associated within the sector. MGP Ingredients will continue to operate and invest in its Ingredient Solutions business located in Atchison, Kansas, including the previously announced $16.7 million-dollar texturized protein facility scheduled to be completed by the end of the year. The company will also continue to operate and invest in its Lawrenceburg, Indiana, distillery operations. MGP President and CEO David Colo says, “The additional supply of grain neutral spirits and industrial alcohol that has entered the market during the past few years has had a meaningful and structural impact on the market.” The company also cited the increase in local corn basis costs that reduced profitability.
| Rural Advocate News | Tuesday July 18, 2023 |
Tuesday Watch List Markets A report on U.S. retail sales in June is set for 7:30 a.m. CDT Tuesday, followed by U.S. industrial production at 8:15 a.m. USDA's Livestock, Dairy and Poultry outlook is due out at 2 p.m. Traders will keep a close watch on the latest weather forecasts. Weather Remnants of a storm complex from western South Dakota Monday night will continue across eastern Nebraska and Missouri Tuesday morning. By Tuesday afternoon, storms will expand into the Tennessee Valley and Ohio Valley. More scattered storms will also form across the eastern Dakotas, Minnesota, and northern Iowa by Tuesday evening. The strongest storms are expected across Missouri, southern Illinois, eastern Kentucky and Tennessee, as well as eastern North Dakota. Damaging winds and isolated, large hail will be the main threats with thunderstorms Tuesday.
| Rural Advocate News | Monday July 17, 2023 |
CoBank: U.S. economic slowdown likely ahead Full impact of monetary policy actions have yet to be felt. The U.S. economy continues to defy gravity and remains strong despite lingering inflationary pressures, higher borrowing costs and a barrage of other headwinds. Consumers continue to spend aggressively on services, businesses are still investing and the labor market remains incredibly strong. Secure jobs are the most important element in consumer spending and well-employed Americans have powered the economic recovery for three years. However, looming risks to the economy are increasing in number and size. According to a new quarterly report from CoBank’s Knowledge Exchange, the full impact of monetary policy actions—raising interest rates, quantitative easing and contracting the money supply—have yet to be felt. Those policy actions, combined with depleted consumer savings, tighter commercial bank lending standards and the persistently inverted yield curve are likely to result in a mild recession by the fourth quarter of 2023. “There is still a lot of wind at the back of this economy, and we don’t believe a severe contraction is coming,” said Dan Kowalski, vice president of CoBank’s Knowledge Exchange. “But we do believe it is important to not misinterpret delayed impacts for minimal impacts. Monetary effects can be slow in developing, and history tells us that the economy can seem just fine right before a recession hits.” The labor market remains relatively tight, but the situation has improved significantly as female and non-native workers have stormed back into the work force. The labor force participation rate for women between the ages of 25-54 now stands at an all-time high, up more than 4% from the low in April 2020. Foreign-born employment has increased at roughly double the pace of native-born employment since April 2020. The successes in these two groups have been critical so far in the economic recovery. But looking forward, it raises the question of how many more workers are available to be coaxed in off the sidelines. Ultimately, the U.S. labor force challenges are far from over. Grains, farm supply & biofuels With the corn and soybean growing season in full swing, drought across the Central U.S. is driving heightened seasonal market volatility. Markets are balancing the quickly deteriorating crop conditions against the potential for El Nino to bring wetter conditions later in the growing season. Wheat harvest is advancing northward in the U.S. and is revealing high variability in crop quality. USDA expects the U.S. hard red winter wheat crop to be the smallest since 1957 on substantially higher abandonments and lower yields. Ag retailers faced a more challenging environment in the second quarter as fertilizer prices continued to fall. Prices were weighed down by reduced demand, as farmers took advantage of pre-payment programs last fall to purchase fertilizer in advance. Despite an overall slowdown in inflation, ag retailers continued to face rising costs, especially for property insurance. Grain and farm supply cooperatives paid about 50% more for property and casualty insurance coverage during the January and April 2023 renewal seasons. The ethanol complex delivered strong second quarter results with steady production and above-average profitability. Operating margins averaged 45 cents per gallon, nearly double the long-term average. While the finalized blending requirements under the Renewable Fuel Standard (RFS) were somewhat disappointing for ethanol, they were incrementally positive for biomass-based diesel. The new rules call for 2.82 billion gallons of biodiesel and renewable diesel in 2023 and 3.35 billion gallons in 2025. Animal protein & dairy As the summer grilling season kicked off, beef demand remained incredibly resilient despite elevated prices for consumers. Retail beef prices averaged $7.50 per pound in May, a record high for the period, and an increase of 2% year-over-year. Robust demand combined with tighter cattle supplies spurred market momentum for cattle. Fed cattle values reached record levels, above $180 per cwt. and feeder cattle shot above $240 per cwt. While consumers have yet to balk at higher beef prices, things could quickly change when seasonal support wanes. Excess hog supply and weak pork demand put hog prices in jeopardy this spring. After a steady start to the year, the CME lean hog index tumbled about $10/cwt., to $72 from mid-March to late April. However, more favorable market conditions across the animal protein segment drove lean hog values up 30% through May and June. While still down about $15 year-over-year, the pork cutout landed in the upper $90s, gaining about $20 per cwt. through the quarter. Domestic chicken consumption was up about 4% year-over-year through June 1, which has helped chip away at elevated cold storage holdings. Wholesale broiler meat prices have largely rebounded to pre-pandemic levels, following significant declines in late 2022 and early 2023. Feed costs have come down about 10% from last year but remain well above their historic averages. For broiler integrators, increased feed costs coupled with higher operational expenses have crimped profitability. U.S. milk producers continue to struggle in the current price environment. The national all-in mailbox milk price has dropped below the $20/cwt. mark after averaging $25.34/cwt. in 2022. While several factors are to blame for this year’s milk price decline, the sharp drop in American/cheddar-style cheese prices is the most significant. Prices for the category have dropped by one-third since the beginning of the year. Milk and feed futures suggest producer profitability should improve considerably by October when Class III milk prices are anticipated to increase by about $3.00/cwt. Cotton, rice & specialty crops U.S. cotton production is rebounding from last year’s crop that was devastated by extreme drought across the southwest. Recent rainfall in top-producing Texas is expected to reduce abandonment following three years of severe drought. The U.S. cotton crop is now estimated at 16.5 million bales, up 14% from last year. Price inflation for clothing and apparel in the U.S. continues to ease with the moderation of cotton prices, which may work to draw in new consumer demand. U.S. rice production is expected to recover from last year’s small crop, although concerns over dryness and worsening conditions in the mid-South have led to increased volatility of rough rice prices. With improved water availability this year, California medium grain rice production is also expected to rebound with planted acreage at 465,000 acres. That’s a substantial increase from last year’s planted acreage of 220,000 acres that were restricted by historic drought conditions. Sugar prices remain historically high as markets ration tight global supplies. USDA currently calls for a rebound in world sugar production for 2023-2024, but concerns are growing that El Nino will result in smaller harvests in 2023-2024. In the U.S., there is no relief in sight for high prices as wet weather delayed planting across northern states this spring, which resulted in a smaller U.S. sugarbeet crop. The tight farm labor market continues to be especially challenging for U.S. specialty crop producers. The Federal Reserve Bank of San Francisco reported that weekly median wages for farm workers swelled to a record high $915 in April, a 24% increase from the year earlier. In June, the House Agriculture Committee created a bipartisan working group, tasked with evaluating the H-2A program and finding solutions for the labor supply challenges facing farmers. Food & beverage While food manufacturers generally indicate they are back to business as usual in the post-pandemic era, many consumers continue to harbor a crisis-management mentality when it comes to food costs. Rising food prices are challenging both at-home and away-from-home food spending. The Consumer Price Index for all food in May was 6.7% higher than May 2022, while food away-from-home prices were up 8.3%. To offset higher prices, consumers are continuing behaviors initially seen during the pandemic, namely eating more meals at home. Foot traffic in restaurants remains well below pre-pandemic levels.
| Rural Advocate News | Monday July 17, 2023 |
High Production Costs Won’t Ease Next Year USDA’s first cost of production forecast for major field crops like corn, soybeans, wheat, cotton, rice, and others shows that input costs are expected to remain elevated into the next growing season. The costs will likely be at the third-highest level of all time and only slightly lower than the record high in 2022. While some input costs like fertilizer and chemicals are expected to decline from 2023 to 2024, other expenses like seed costs, labor, machinery and equipment, taxes, and insurance are expected to rise. Since 2020, the total costs paid by farmers to raise crops and care for livestock have increased by more than $100 billion, or 28 percent, to an all-time high of $460 billion this year. Based on USDA’s current input cost projections, trend yields, and commodity price trends, several major field crops may experience marketing year average prices below breakeven levels this year and possibly into 2024. *********************************************************************************** White House Hosts Event on Competition in the Farm Bill The USDA and White House co-hosted a meeting to discuss competition priorities in the farm bill. National Farmers Union President Rob Larew took part, saying that the U.S. needs a farm bill that prioritizes fair and competitive markets. “Today’s event shows the need for this issue to be addressed in the 2023 Farm Bill,” Larew says. “Our Fairness for Farmers Campaign has sounded the alarm on monopolies, and this meeting is a sign our concerns are being heard by our decision-makers.” The U.S. Cattlemen’s Association also took part in the event. USCA Vice President Lia Biondo says the discussion marked progress toward a fairer, more competitive marketplace. “A Texas A & M study shows that without the Cattle Price Discovery and Transparency Act, negotiated trade in Texas, Oklahoma, and New Mexico is expected to fall to zero by 2026,” she says. “Zero percent negotiated trade is a wholly vertically-consolidated industry.” *********************************************************************************** Minnesota Company Launches Relief Effort for Ukrainian Farmers The United Nations Food and Agriculture Organization says Ukraine’s farmers have suffered $3.9 billion in losses since Russia invaded in February 2022. A U.N. study says cultivated area has decreased nine percent since last year, and 12 percent of Ukraine’s farms report unexploded ordinances in their fields. EarthDaily Agro of Maple Grove, Minnesota, launched ‘Farmerhood,’ a fund-raising initiative to help farmers impacted by war. A Twin Cities TV station says the group’s fundraising goal is $1 million, enough to help 200 farmers. Dave Gebhart of EarthDaily says they’ve reached about $300,000 thanks to corporate sponsors. The group has received 300 requests for help from farmers in Ukraine. The farmers must have 1,200 acres or less to be eligible for assistance. The group says there is a thorough audit of the farmer’s property and location to make sure they can help those who suffer the most. For information, go to Farmerhood.org. *********************************************************************************** Cattle Producers Praise Congressional Support of Beef Checkoff Cattle industry leaders praised the introduction of a bipartisan congressional resolution recognizing the importance of commodity checkoff programs, including the Beef Checkoff. As a cattle producer who invests in the checkoff, National Cattlemen’s Beef Association President Todd Wilkinson says he knows how important the program is to the industry’s success. “The Beef Checkoff was created by cattle producers and provides immense benefits to those producers,” he says. “I’m grateful for the resolution and the fact that lawmakers are standing with cattle producers to recognize the importance of checkoff programs.” He’s also hopeful that more members of Congress will listen to farmers and ranchers and reject animal rights activist-led proposals like the OFF Act that undermine producer control of checkoffs. “Checkoff-funded programs have led to the development of new cuts of beef and strengthened consumer trust in the cattle industry’s animal welfare and sustainability,” says NCBA Policy Division Chair Gene Copenhaver. ‘*********************************************************************************** Lamb Industry Sustainability Survey Needs Producer Input The American Lamb Board is looking for help from U.S. lamb producers and feeders regarding their environmental stewardship and other sustainability practices. The goal is to better inform consumers and direct checkoff programs about those practices. The survey runs until Monday, August 14. “It’s so important to have solid data that actually represents what our diverse American Lamb industry does, the progress we’ve made, and that helps us continually improve productivity, animal care, and sustainability,” says Peter Camino, ALB Chair from New York. “The U.S. lamb industry is often misrepresented, so we need solid, new data to correctly tell our story.” The ALB says the sustainability survey will help them communicate with retailers, chefs, and consumers. Also, the ALB will use the information to guide its industry education and research efforts so that checkoff funds are invested where they will make the most difference. For more information, go to bit.ly/USLambSurvey. *********************************************************************************** USDA Requests Input on GHG Measurement Plans USDA is requesting public input on the draft “Federal Strategy to Advance Greenhouse Gas Measurement and Monitoring for the Agriculture and Forestry Sectors.” The draft Federal Strategy outlines a framework for enhancing greenhouse gas measurement, monitoring, reporting, and verification within the agricultural and forestry sectors, with a special focus on the administration’s Climate-Smart Agriculture and Forestry Initiative. It also aligns with ongoing work across the federal government to quantify carbon sequestration and carbon dioxide, methane, and nitrous oxide emissions. USDA recently announced a $300 million investment to advance priorities set by the strategy. The Notice in the Federal Register seeks information on four topics: general comments or questions about the draft Federal Strategy; animal agriculture; croplands; and data & data sharing. Comments are invited from a variety of stakeholders, including users and providers of agriculture and forestry data, methods, and analyses, state and local agencies, private sector researchers, and non-governmental organizations.
| Rural Advocate News | Monday July 17, 2023 |
Top 5 Things to Watch - Emergency Haying, WASDE Fallout Among Coming Stories OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of July 9. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. OMAHA (DTN)-- Here are the Top 5 things the DTN Newsroom is tracking for the week of July 16. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. Market Maneuvers: Last week's WASDE kicked off all kinds of market reactions. The "will he or won't he" on Russian President Putin extending the Black Sea export agreement is also playing with the trade. Watch for the latest in our Markets sections. 2. Tar Spot Spread: Several areas of Iowa, Indiana, Missouri and surrounding states are seeing outbreaks of tar spot in corn. We're continuing to track the spread of the disease, which can cut yields by as much as 50 bushels per acre. For our latest information on the disease, see Crop Editor Jason Jenkin's story here: 3. Some hay relief: USDA last week approved haying and grazing on some CRP acres due to drought. We're continuing to watch the tight forage and hay situation and will keep you informed on what that means to cattle and dairy. 4. Be safe in that hay field: In addition to CRP release, many states have opened roadside areas to haying by local farmers. It's a helpful resource, but it also puts hay crews out among speeding vehicles and potentially inattentive drivers. Be safe, use cones, flags or flashers (or all the above) in haying areas and have a guide vehicle on hand when moving equipment and hay bales in and around public roadways. 5. Learning top cuts: The "field to fork" movement, and concern over meat packer concentration, have driven a number of colleges and universities to either start or expand meat cutting education. We'll be looking into where that's happening and if it's keeping up with local slaughter demand. Watch for those stories coming soon.
| Rural Advocate News | Monday July 17, 2023 |
Monday Watch List Markets Back from the weekend, traders will check over the latest weather forecasts and news happenings. USDA's weekly report of export inspections is set for 10 a.m. CDT and will be followed later Monday morning by soybean crush estimates for June from the National Oilseeds Processors Association. USDA's Crop Progress report is set for 3 p.m. Weather Daytime thunderstorms will develop across the Ohio Valley and Mid-Mississippi Valley Monday afternoon. Later Monday evening and into Monday night, more storms will develop across South Dakota and Nebraska. Some storms could become strong to severe across Kentucky, southern Indiana, and far southern Illinois Monday afternoon while the main threat for severe storms across the Plains Monday night will be in southwest South Dakota into northeast Nebraska.
| Rural Advocate News | Friday July 14, 2023 |
Farm Lending Slows as Interest Rates Climb Farm lending activity at commercial banks in the Kansas City Fed’s district slowed through the first half of 2023 as interest rates continued pushing higher. The volume of non-real estate farm loans at commercial banks declined for the second-consecutive quarter. The survey of commercial banks shows the volume of non-real estate loans was 15 percent below last year, and the drop was attributed to a lower average size of loans and a smaller number of loans compared with 2022. The average interest rates on agricultural loans increased for the sixth-consecutive quarter. The U.S. farm economy outlook has moderated in recent months as risks of more limited profit opportunities have grown alongside softening in commodity markets and elevated production expenses. Broad strength in farm finances has continued to support historically-strong loan performance, but farm profitability will remain important for agricultural credit conditions and lending demand in the coming months. *********************************************************************************** NCGA: Brazil’s Higher Corn Exports Not a Trend Brazil is positioned to surpass the U.S. in corn exports this year. However, the National Corn Growers Association says the data shows the trend leading to this development won’t continue. The South American country faces several challenges when it comes to agriculture and trade. “U.S. exports have been hindered by droughts that have affected key areas of the Corn Belt,” says NCGA Lead Economist Krista Swanson. “But the U.S. has several relative advantages in the global corn market that can be harnessed to support our $90 billion corn industry.” The U.S. is bolstered by superior infrastructure and sustainable farming practices. While there is additional pasture area available to expand Brazil’s cropland, efforts are also underway to rein in deforestation of valuable rainforest critical to global sustainability. NCGA is calling on Congress to double farm bill funding for important trade programs like the Market Access Program and the Foreign Market Development Program. *********************************************************************************** U.N. says 122 Million More People Facing Hunger Since 2019 Over 122 million more people around the world are facing hunger since 2019 due to COVID-19 and repeated weather shocks and conflicts like the war in Ukraine. That’s according to the latest “State of Food Security and Nutrition in the World” report published this week by the United Nations. Several agencies within the U.N. says if the trends remain as they are, the Sustainable Development Goal of ending hunger by 2030 won’t be reached. The latest report shows that between 691 and 783 million people faced hunger in 2022. While the numbers have stalled between 2021 and 2022, there are many places in the world facing increasing hunger. Hunger was still rising in western Asia, the Caribbean, and throughout all the subregions of Africa in 2022. Africa remains the hardest-hit region in the world with one in five people facing hunger on the continent, more than twice the global average. *********************************************************************************** USDA Investments in Lowering Energy Costs for Rural America The USDA’s Rural Business-Cooperative Service is making $21 million in technical assistance grants available through the Rural Energy for America Program. The funds will help agricultural producers and rural small businesses access federal funds for renewable energy and energy efficiency improvements. “This will make sure rural Americans get access to the grants to make energy more affordable, create new economic opportunity, and reduce greenhouse gas emissions,” says Rural Business-Cooperative Service Administrator Dr. Karama (kah-RA-mah) Neal. Grant recipients can include state, tribal, or local governments, colleges and universities, electric cooperatives and utility companies, and for-profit and non-profit organizations. “The technical assistance grants will provide hands-on support to farmers, ranchers, and rural small business owners seeking federal funds for renewable energy systems like wind and solar,” she says. “This will help small businesses and producers lower energy costs and strengthen their operations.” Interested applicants should contact their USDA Rural Development state Office for information. *********************************************************************************** Legislation Would Lower the Cost of Biofuel-Blending Compliance A bipartisan group of lawmakers wants to lower the cost of complying with biofuel-blending mandates. Reuters says legislation was introduced that would direct the White House to let oil refiners purchase compliance credits (RINs) for biofuel blending laws at a lower cost than they’d pay on the open market. The group behind the bill says it would help struggling refineries stay afloat during a time of upheaval in the energy markets across the globe. Refiners have said for years that the costs of complying with the Renewable Fuel Standard mandates is too high. However, biofuel proponents like ethanol producers and corn farmers say the RFS increases the marketplace for their products. A news release says under the proposal, refiners could buy those biofuel credits at a fixed price only if they aren’t able to purchase them at cost-effective levels on the open market. The bill’s introduction caused RIN prices to drop. *********************************************************************************** CHS Reports Third Quarter Earnings Agribusiness cooperative CHS Inc. released the results for its third quarter that ended on May 31. The company reported a quarterly net income of $547.5 million. That’s compared to a record third-quarter net income of $576.6 million in fiscal year 2022. For the first nine months of fiscal year 2023, the company reported a net income of $1.6 billion and revenues of $36.1 billion. During the same period in 2022, the company reported net income of $1.2 billion and revenues of $34.4 billion. Third-quarter highlights include the energy segment delivering strong earnings, reflecting sustained favorable market conditions in their refined fuels business. Another highlight is improved soybean and canola crush margins due to strong meal and oil demand resulting in higher earnings in the company’s oilseed processing business. “Entering the end of our fiscal year, opportunities remain for profitability and growth in the agriculture industry,” says CHS President Jay Debertin.
| Rural Advocate News | Friday July 14, 2023 |
Friday Watch List Markets An index of U.S. consumer sentiment is set for 9 a.m. Friday and this is also the last trading day for July grain futures. Traders continue to keep close track of changes in weather and watch for an occasional export sale announcement. Weather A thunderstorm complex currently extends across western Arkansas while another cluster of storms is moving out of the Texas Panhandle. Farther north, a line of storms is moving through southern Wisconsin into northern Illinois while another complex of storms extends across southern South Dakota and northern Nebraska. The storms across northern Nebraska may try to expand and become stronger across eastern Nebraska early Friday afternoon and eventually extend into eastern Kansas, southern Iowa, and northern Missouri late Friday afternoon into the evening. Strong to severe storms will be possible across southern Kansas and northern Oklahoma, with damaging wind gusts and large hail being the main threats.
| Rural Advocate News | Thursday July 13, 2023 |
U.S. consumers less willing to pay for beef, pork in June U.S. consumers have lowered their willingness-to-pay for six evaluated retail products, including ribeye steak, ground beef, pork chops and bacon, in June compared to May, according to the latest Meat Demand Monitor. WTP also decreased for all evaluated food service meals last month. Retail and food service demand in June 2023 was also lower than the year prior for all examined beef and pork offerings. The combined beef and pork projected market shares for June are 32% and 21%, respectively at the grocery store, and 39% and 13% at the restaurant. "I think base willingness-to-pay is declining, consistent with the general demand statement around June 2023 having lower domestic meat demand than June 2022," says Glynn Tonsor, professor in the Department of Agricultural Economics at Kansas State University. "Per the extended chart above, this aligns with higher rates of no-protein, particularly among those indicating their finances have stagnated or declined from last year." Launched in February 2020, the MDM project is funded in-part by Beef Checkoff and Pork Checkoff and tracks U.S. consumer preferences, views and demand for meat with separate analysis for retail and food service channels. The monthly survey is conducted online with more than 2,000 respondents reflecting the national population. Taste, freshness, price and safety remain most important when purchasing protein, however freshness increased most since May, with environmental impact declining. Consumers are also eating lunch and dinner at home more often since last month's report. The survey noted 54% of respondents dined in for lunch and 69% for dinner in June, compared to May's 48% for lunch and 65% for dinner. In June, 14%, 21% and 33% had beef their prior day for breakfast, lunch and dinner, while pork was included in 18%, 12% and 18% of these meals. The protein source for at-home meals was predominantly grocery stores. Meals consumed away-from-home vary in frequency, however quick service is the most popular for breakfast and lunch meals, casual dining for dinner. Consistent with a special report shared in late May on the role of financial sentiment in meat consumption and demand, in June a small minority (16%) indicated their household finances have improved over the past year. The survey noted 47% of respondents indicated their finances are the same while 36% said their finances are worse. Inclusion of beef and pork in prior day meals is much higher for those reporting improved household finances reaffirming the role of macroeconomic conditions in domestic beef and pork demand. Tonsor says the trend of those 16% reporting household finances that are better than last year including meat protein in prior day meals at higher rates is not unique to beef and pork. This holds true for chicken and fish/seafood as well. "Those indicating their household financed are the same (47%) or worse (36%) than last year report much higher cases of other (something besides beef, pork, chicken and fish/seafood) or no protein in prior day meals," Tonsor says.
| Rural Advocate News | Thursday July 13, 2023 |
USDA Releases July WASDE Report The Department of Agriculture Wednesday Issued the latest Monthly World Agricultural Supply and Demand report. This month’s corn outlook is for fractionally higher supplies and ending stocks. Corn production is forecast up 55 million bushels as greater planted and harvested area from the June 30 Acreage report is partially offset by a four-bushel reduction in yield to 177.5 bushels per acre. The season-average farm price is unchanged at $4.80 per bushel. Oilseed production is projected at 127.6 million tons, down 5.6 million from last month. Harvested area, forecast at 83.5 million acres in the June 30 Acreage report, is down four million from last month. The season-average soybean price is forecast at $12.40 per bushel, up $0.30 from last month. Changes this month to the wheat outlook increase supplies and domestic use, leave exports unchanged, and increase ending stocks. The projected season-average farm price is forecast at $7.50 per bushel, down $0.20 from last month. *********************************************************************************** Monthly Food Prices Unchanged in Consumer Price Index The Consumer Price Index for All Urban Consumers rose 0.2 percent in June, after increasing 0.1 percent in May, according to the U.S. Bureau of Labor Statistics. The index for food at home was unchanged over the month, while the index for food away from home rose 0.4 percent in June. The index for fruits and vegetables increased 0.8 percent in June, following a 1.3 percent increase in May. The cereals and bakery products index rose 0.1 percent over the month, while the index for meats, poultry, fish, and eggs decreased 0.4 percent in June. The other food at home index decreased 0.2 percent in June after increasing 0.4 percent the previous month. The index for dairy and related products fell 0.3 percent over the month, and the index for nonalcoholic beverages declined 0.1 percent in June. The food at home index rose 4.7 percent over the last 12 months, while the index for food away from home rose 7.7 percent. *********************************************************************************** AEM Releases June 2023 Equipment Sales Numbers Total farm tractor unit sales in the U.S. turned positive for the first time in 2023, led by continued strength in large tractors and combines. The Association of Equipment Manufactures reported Wednesday gains in the U.S. market were led by 100-plus horsepower two-wheel-drive units, up 25.4 percent, closely followed by four-wheel-drive units, up 21.9 percent. However, a change from the previous month is a small gain in the sub-40 horsepower two-wheel-drive segment, up 0.2 percent, that took overall sales positive since they represent more than 66 percent of total unit sales volume for the month. U.S. combines also marked another large gain of 9.8 percent. At the mid-year mark, year-to-date unit sales of farm tractors are down 9.7 percent despite a gain of 45.5 percent in the four-wheel-drive segment over that same period, and combines are up 51.5 percent. Total farm tractor unit sales year-to-date in Canada are down 14.4 percent, while combines are up 81.8 percent. *********************************************************************************** Farm, Forestry, Environmental and Hunger Advocates Unite Behind 2023 Farm Bill Twenty groups representing agricultural, environmental, forestry, wildlife, nutrition and hunger advocates have launched the “Farm Bill for America’s Families: Sustaining Our Future” campaign. The effort urges lawmakers to pass the 2023 farm bill this year. Farm Bill for America’s Families brings together stakeholders who support the farm bill and recognize its impact on all Americans. The campaign seeks to engage consumers, leaders and lawmakers alike on the importance of the farm bill and highlights five core objectives: food security, job creation, conservation, risk management and addressing hunger. The groups say the farm bill’s impact extends beyond the farm by protecting our nation’s food supply – providing millions of jobs, ensuring access to nutrition for families facing hunger; protecting farms from risks like weather disasters; advancing conservation efforts; and spurring innovation through agricultural research. Other organizations that share the campaign’s mission are invited to join at FarmBillforAmericasFamilies.com/join. *********************************************************************************** Baldwin, Blackburn Introduce Bill to Support American Dairy Businesses Lawmakers just introduced the Dairy Business Innovation Act of 2023, bipartisan legislation that will reauthorize and strengthen the Dairy Business Innovation Initiatives. Senators Tammy Baldwin, a Wisconsin Democrat, and Marsha Blackburn, a Tennessee Republican, introduced the bill Wednesday. Baldwin created the Dairy Business Innovation Initiatives through the Dairy Business Innovation Act in 2018, which passed as part of the 2018 Farm Bill. Baldwin says, "expanding this program will give more small- and medium-sized dairy businesses the tools and opportunity to reach new markets." The Initiatives provide resources to serve prospective and established businesses that produce a product made from milk from a dairy animal, including dairy farms with their own production facilities and dairy processors with cheese, ice cream, and bottling facilities. Since the program was established in 2019, Initiatives have supported over $150 million in awards through regional centers across the country. FarmFirst Dairy Cooperative, along with other members of the Midwest Dairy Coalition, endorsed the legislation. *********************************************************************************** Land Sales Slowing, Prices Remain High The agriculture real estate market entered a period of de-escalation beginning in the fourth quarter of 2022. The market experienced a reduction in both sales volume and value growth since that time, as interest rates increased, and inflation pressures became more apparent, according to Farmers National Company. That trend has continued into the first half of 2023 with fewer properties being offered for sale and market values that are dramatically off the pace seen in the first half of 2022. Value growth is still positive across the Midwest, but increases are now in the single digits instead of the double digits seen in 2021 and 2022. Farm operators remain the largest group of buyers through Farmers National Company, accounting for nearly 80 percent of all land sale transactions. The sales volume at Farmers National Company through the first half of 2023 continues to exceed the five-year average but is slightly off the "exceptional" pace set in 2021 and 2022.
| Rural Advocate News | Thursday July 13, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, a report on producer prices and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage follows at 9:30 a.m. Traders will keep close watch over the latest weather developments. Weather Remnants of a storm complex are exiting southern Missouri and southern Illinois Thursday morning. By Thursday afternoon and through the evening, scattered showers and storms will develop across the Northern and Central Plains as well as the Ohio Valley. Some of the strongest storms are expected across western Nebraska, western Kansas, the Oklahoma and Texas Panhandles, and southern Ohio. Damaging wind gusts and large hail will be the main threats with storms that develop Thursday, but an isolated tornado or two also cannot be ruled out.
| Rural Advocate News | Wednesday July 12, 2023 |
Senate Confirms Torres Small as Deputy Agriculture Secretary The Senate Tuesday confirmed (SO’chill) Xochitl Torres Small as Deputy Secretary of the Department of Agriculture, welcomed by agriculture groups and Agriculture Secretary Tom Vilsack. In a statement following the vote, Vilsack says, "I have witnessed her lead with energy, authenticity and personal investment that I know will leave an impact on USDA for years to come." Since October 2021, Torres Small has served as Under Secretary for Rural Development at USDA. Effective July 14, Rural Development Chief Operating Officer Roger Glendenning will serve as Acting Under Secretary. Before joining USDA, Torres Small was a United States Representative for the fifth largest district in the country. As a Member of Congress, she served as a member of the House Agriculture Committee, the House Armed Services Committee, and chairwoman of the Oversight, Management, and Accountability Subcommittee of the House Homeland Security Committee. She was the first woman and first person of color to represent New Mexico's second congressional district. *********************************************************************************** USDA Spending Accountability Act Introduced A group of farm-state Senators Tuesday introduced the USDA Spending Accountability Act. The bill was introduced by Republican Senators Chuck Grassley of Iowa, Roger Marshall of Kansas and Mike Braun of Indiana. The legislation would limit the disbursal of funds through the USDA’s financing institution, known as the Commodity Credit Cooperation, to be permitted only when authorized by Congress. The Secretary of Agriculture has broad discretionary authority in spending excess CCC funds. This includes reimbursing farmers for losses due to trade disputes and funding climate grants, often to multinational corporations. Recent instances of discretionary spending abuse have prompted bipartisan concern, as these programs are enacted without input from Congress and allow USDA to act as authorizer and appropriator. By removing this discretionary authority, the Congressional Budget Office estimates that the USDA Spending Accountability Act would save $8 billion over ten years. The substantial savings created by this bill would assist Congress in its goal to find savings in the Farm Bill. *********************************************************************************** National 4-H Council Appoints New President And CEO The National 4-H Council Tuesday announced the departure of Jennifer Sirangelo, the current President and CEO. Sirangelo will depart on August 18, 2023, when she will transition leadership of the organization to an experienced National 4-H Council executive and 4-H alumna, Jill Bramble. After an 18-month, externally-led executive succession process, the National 4-H Council Board of Trustees unanimously supported the appointment of Bramble, current Executive Vice President and Chief Growth Officer, as its new President and CEO. She has more than 18 years of successful leadership experience at the organization and a deep commitment to National 4-H Council's mission, values, and goals. Sirangelo has been an executive leader at National 4-H Council for 17 years, including nearly ten years as President and CEO. As the new President and CEO of National 4-H Council, Bramble brings a wealth of experience and a deep commitment to the organization's mission, as she is a fourth-generation 4-H alumna. *********************************************************************************** Gavins Point Releases Increased After System Storage Check Above-average rainfall and fast-melting snow led to above-average runoff in the upper Missouri River Basin in June. Runoff above Sioux City, Iowa, was 6.7 million acre-feet, 122 percent of average. The annual runoff forecast above Sioux City, Iowa is 29.2-million-acre feet, 114 percent of average, and about 2.4 million acre-feet higher than last month's forecast. Precipitation was normal to much-above-normal for June in much of Montana, southern and east-central North Dakota, and western South Dakota. Below-normal precipitation occurred in eastern South Dakota and into the lower Basin. Based on the July 1 System storage, flow support for navigation increased from minimum service to 1,500 cfs below full-service level. Per the guidelines in the Master Manual, this will also result in a full navigation flow support season ending December 1 at the mouth of the Missouri River. Gavins Point releases were increased to 29,000 cubic feet per second in early July to account for the increase in navigation flow support. *********************************************************************************** FMC Decreases 2023 Outlook FMC Corporation Tuesday updated its expectations on the second quarter and full-year 2023 outlook. Revenue in the second quarter is now expected to be between $1.00 billion and $1.03 billion. The revised guidance is driven by substantially lower-than-expected volumes due to an abrupt and significant reduction in inventory by channel partners, which only became evident towards the end of May and continued through the remainder of the quarter. Based on current channel dynamics, the company is revising its full-year financial outlook, with revenue now expected to be $5.20 billion to $5.40 billion. FMC President and CEO Mark Douglas says, "Towards the end of May, we experienced unforeseen and unprecedented volume declines in three out of our four operating regions, as our channel partners rapidly reduced inventory levels." FMC is a global agricultural sciences company with approximately 6,600 employees at more than 100 sites worldwide. *********************************************************************************** Wholesale Egg Prices Tumble as Egg Supplies Recover Wholesale egg prices reached record highs in 2022 after avian flu resulted in significant reductions in egg-laying flocks, according to USDA’s Economic Research Service. Avian flu is a disease that spreads rapidly in birds and poultry and is often lethal. Cumulative losses attributable to the disease amounted to more than 43 million egg-laying hens. At the height of the disease, in the last weeks of December 2022, weekly egg inventories were 29 percent lower than at the beginning of the year, and prices reached a high of $5.37 per dozen. With no new outbreaks reported in 2023, the size of the egg-laying flock has gradually increased since late 2022. In turn, wholesale prices have fallen sharply, reaching $0.89 per dozen in the first week of May 2023. As of the week ending June 30, 2023, egg inventories were about 24 percent higher than the lowest 2022 values. During the same week, the average price was $1.23 per dozen, about 77 percent lower than the highest average weekly price in 2022.
| Rural Advocate News | Wednesday July 12, 2023 |
Wednesday Watch List Markets The U.S. Department of Labor's consumer price index for June is due out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m. USDA's WASDE report and the Crop Production report from NASS are both out at 11 a.m., followed by DTN's report webinar at 12:30 p.m. The Federal Reserve's Beige Book will be released at 1 p.m. Weather Scattered showers and thunderstorms will continue to develop across southern and Eastern areas of the Corn Belt Wednesday, with some of the strongest storms expected across southern Iowa, eastern Kansas, western Indiana, and most of Illinois and Missouri. A thunderstorm complex may form across Missouri Wednesday evening and lead to a threat of strong to severe wind gusts up to 75 mph.
| Rural Advocate News | Tuesday July 11, 2023 |
USMEF Releases May Export Data Led by another outstanding month in Mexico and robust demand for variety meat, exports of U.S. pork continued to gain momentum in May, according to the U.S. Meat Export Federation. While well below the record-large volume and value posted in May 2022, beef exports improved from April and were the second largest, behind March 2023. May pork exports reached 261,361 metric tons, up 16 percent from a year ago, the ninth largest on record and the largest since May 2021. Export value climbed 12 percent to $731.1 million, also the highest since May 2021 and the seventh highest on record. Pork variety meat exports were particularly outstanding in May, setting a value record of $127 million. Beef exports totaled 116,159 metric tons, down 14 percent from the May 2022 record but up four percent from the previous month. Export value was $874.7 million, down 19 percent year-over-year but two percent above April. *********************************************************************************** Canned, Frozen Corn Industry Struggling For those whose primary experience with corn is the butter-drenched cob variety, it might come as a surprise that other forms of sweet corn are in trouble. A new University of Illinois Urbana-Champaign analysis shows sweet corn production for frozen and canned products has been steadily shrinking in the U.S. over the past 27 years, particularly in rainfed portions of the Midwest. Study author Marty Williams says, "We saw a decline in acreage throughout production areas in the Midwest and Pacific Northwest, the regions where most processing sweet corn production is happening." Although the analysis was designed to illustrate long-term trends, not causes, the study found a strong relationship between extreme temperatures and sweet corn yield loss, implicating climate change. The dataset can't predict where the industry will go next, but Williams sees potential regional shifts in production areas, such as moving into locations with more irrigation infrastructure. *********************************************************************************** USDA Opens Financial Assistance for Borrowers Who Have Faced Discrimination The Department of Agriculture recently opened the financial assistance application process for eligible farmers who experienced discrimination in USDA farm lending programs prior to January 2021. Agriculture Secretary Tom Vilsack says, "The opening of the application process is an important step in delivering on our commitment of providing financial assistance to those who faced discrimination in USDA farm lending." The program website, 22007apply.gov, is now open. The website includes an English- and Spanish-language application that applicants can download or submit via an e-filing portal, information on how to obtain technical assistance in-person or virtually, and additional resources and details about the program. Farmers, ranchers, and forest landowners who experienced discrimination by USDA in its farm loan programs prior to January 1, 2021, and/or are currently debtors with assigned or assumed USDA farm loan debt that was the subject of USDA discrimination that occurred prior to January 1, 2021, are eligible for this program. *********************************************************************************** Food-at-home Spending Varies by Race and Ethnicity U.S. households shifted away from buying foods at restaurants and other food service venues to food-at-home outlets such as grocery stores and other retail establishments in 2020. The largest shifts came from a category designated by USDA’s Economic Research Service as "all other FAH," which includes prepared meals and salads, desserts, and foods not elsewhere classified such as soups, savory snacks, candy, sweeteners, margarine, and butter. "All other FAH" was by far the largest category before 2020, and its share of the household food budget increased by 2.6 percentage points in 2020 compared with the period from 2016 to 2019. However, this increase was unevenly distributed across racial and ethnic populations and subcategories. All U.S. racial and ethnic subpopulations except Hispanic households increased their total food budget share for “all other FAH” during this period. Black households increased their budget shares for “all other FAH” the most, followed by Asian households. *********************************************************************************** Sorghum Checkoff Program Unveils Curriculum for Grades Kindergarten through 12th The United Sorghum Checkoff Program recently launched its first Farm-to-School Curriculum. The curriculum is an agricultural education initiative that aims to integrate the science and production of sorghum, in addition to its nutritional value, into classrooms across the United States. The curriculum provides educators with an array of engaging resources that introduce students to the importance of sorghum as a sustainable, versatile and flavorful grain that can be enjoyed in a variety of ways. The program also aims to ignite the passion for agriculture in the next generation, cultivating an understanding and appreciation for sorghum. The Sorghum Farm-to-School curriculum engages students of all grade levels, from Kindergarten to 12th grade, through experiential learning. Tailored modules for elementary, middle, and high school students offer rich, multisensory experiences. Students not only grow and taste sorghum, but they also explore various subjects by writing about and applying their knowledge of sorghum. Find tailored curriculum content and activities by exploring SorghumCheckoff.com/educators. *********************************************************************************** Fuel Demand Plummets After Holiday The nation's average price of gasoline has remained unchanged from a week ago, holding at $3.50 per gallon, according to GasBuddy. The national average diesel price fell 1.3 cents in the last week and stands at $3.79 per gallon. GasBuddy's Patrick De Haan says, “After declining going into July 4, average gasoline prices have struggled to find much momentum in either direction as the price of crude oil has continued to bounce around.” U.S. retail gasoline demand saw an 8.6 percent drop last week as the July 4 holiday closed and motorists returned from their holiday plans. However, De Haan says there is a risk of hurricane season and potential disruptions. Colorado State University recently released its third forecast for the 2023 hurricane season, showing a sharp uptick in the number of expected major hurricanes. Oil markets have seen a rally over the last week after Saudi Arabia extended its 1-million-barrel-per-day production cut to August, and Russia joined in by slowing oil exports.
| Rural Advocate News | Tuesday July 11, 2023 |
Tuesday Watch List Markets The U.S. Energy Department's Short-Term Energy Outlook is the only significant report on Tuesday's docket. Wednesday will be busier with the consumer price index for June and USDA's WASDE report for July set for release. As usual, traders will be watching the latest changes in weather as export sales have been a rare sight. Weather A cold front will continue to provide chances for scattered rain showers and thunderstorms across the Dakotas, Iowa, Nebraska, northern Missouri, and northern Illinois Tuesday into Tuesday night. Some of the strongest storms are likely across South Dakota, eastern Nebraska, and western Iowa. Damaging hail, wind gusts, and tornadoes are all threats with storms that develop across these states.
| Rural Advocate News | Monday July 10, 2023 |
Ag Groups Motion Court to Vacate Biden WOTUS Rule Instead of Issuing Stay LINCOLN, Neb. (DTN) -- Agriculture groups have asked a federal court to order the Biden administration to implement immediate changes to the waters of the U.S. rule following the Supreme Court's ruling in Sackett v EPA that essentially left the current rule unenforceable. Among the immediate changes sought in a motion filed by the groups in federal court in North Dakota is for the agencies to apply the Sackett ruling and formally declare ephemeral and isolated waters as no longer jurisdictional. A preliminary injunction against the WOTUS rule remains in place in 24 states, as ordered by the U.S. District Court for the District of North Dakota. A federal judge in Texas also issued a preliminary injunction in Texas and Idaho. In Sackett v EPA, the Supreme Court ruled the agency's use of the "significant-nexus" test in making Clean Water Act determinations was unconstitutional. The test is one of two the Biden rule uses to make determinations. The Biden administration had asked the federal court in North Dakota for a stay in the case, telling the judge the agency plans to issue a rewrite by September. "Federal defendants assert that a stay will preserve resources because the 'new rule may resolve, or at least narrow, the issues in this case,'" the ag groups led by the American Farm Bureau Federation and the National Cattlemen's Beef Association, said in a motion they are against a stay. "... Sackett already narrowed the issues in this case," the groups stated in their motion. "Indeed, all five of the categories of WOTUS as defined in the rule are invalid as a result of Sackett's rejection of the agencies significant-nexus test, definition of adjacency to mean having a continuous surface connection and not merely neighboring, adoption of the relatively permanent test from Rapanos, limitation of federal jurisdiction to interstate waters and further limitation of federal jurisdiction to navigable waters." The groups said they have no confidence that any new rule put forward by the EPA and the U.S. Army Corps of Engineers will "fairly account" for the Sackett opinion. "As the Supreme Court highlighted, federal defendants have 'sought to minimize (prior WOTUS rulings') impact," the ag groups said. "And businesses have watched federal defendants evade prior WOTUS decisions in SWANCC and Rapanos. The EPA has provided no details to the court on how it will apply Sackett, has given the Corps no direction as to how to apply Sackett and instead has only stated that it plans to issue a new rule by Sept. 1, 2023." The groups argue that allowing the Biden rule to remain in effect until a new rule is promulgated would put farmers, ranchers and other landowners at "continuing risk of criminal and civil penalties" for "ordinary" use of their property. Injunctions against the Biden rule are in effect in Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia and Wyoming. EPA and the Corps of Engineers have used significant nexus for years. The standard essentially allows regulators to claim jurisdiction over even dryland features if there is scientific evidence of a chemical and biological connection to an actual navigable water such as lakes, streams and rivers. The Sacketts have filed many appeals on the EPA decision in the past 15 years. The U.S. Court of Appeals for the Ninth Circuit had sided with EPA's wetland assessment on the Sacketts' property. The court's ruling sends the appeals court decision back to the court for reconsideration. Justice Samuel Alito said in writing the majority opinion that EPA's interpretation of the law "gives rise to serious vagueness concerns in light of the CWA's criminal penalties." "Due process requires Congress to define penal statutes 'with sufficient definiteness that ordinary people can understand what conduct is prohibited,'" Alito wrote, "and 'in a manner that does not encourage arbitrary and discriminatory enforcement.' Yet the meaning of 'waters of the United States' under the EPA's interpretation remains hopelessly indeterminate. "The EPA contends that the only thing preventing it from interpreting 'waters of the United States' to 'conceivably cover literally every body of water in the country' is the significant-nexus test."
| Rural Advocate News | Monday July 10, 2023 |
Food Price Index Continues Downward Trend The U.N. Food and Agriculture Organization’s World Food Price Index averaged 122.3 points in June, down 1.7 points from May, continuing a downward trend. The current level is 37 points or 23 percent below the peak in March 2022. The monthly decline reflected drops in sugar, vegetable oils, cereals, and dairy products, while the meat price index was virtually steady. The Sugar Price Index took the biggest drop, averaging 152 points in June, down 5.1 points from May, the first drop after four consecutive increases. The Cereal Price Index averaged 126.6 points in June, down almost three points from May and almost 40 percent below last year. The Vegetable Oil Price Index averaged 115.8 points in June, three points lower than May and the lowest level since 2020. The Dairy Price Index was 116 points in June, down one point, and the Meat Index was unchanged at 117.9 points in June. *********************************************************************************** Still Mostly Dry in the Weekly Drought Monitor Heavy rains fell during the week in parts of the Midwest, Ohio River Valley, and the Northeast. That led to widespread improvements from southeast Nebraska to central Illinois and parts of Indiana and Kentucky. Further south and west, in southern Missouri, the Texas-Louisiana border, and other parts of central Texas, drier weather led to larger precipitation deficits and significant hay production problems in parts of Missouri. Many warmer-than-normal temperatures covered the South as it is blanketed by the continuing heat wave, especially in eastern Texas and Louisiana. Dry weather in parts of the Upper Midwest led to worsening conditions in parts of Michigan, Wisconsin, and Minnesota. Conditions in parts of the western Great Plains led to some improvements in long-term dryness and long-term moderate drought in the Texas and Oklahoma Panhandle region and in western Nebraska and eastern Wyoming. A mix of worsening and improving conditions occurred in the Pacific Northwest. *********************************************************************************** PLC Leads Coalition Comments on BLM Proposal The Public Lands Council submitted grazing coalition comments raising concerns with the Bureau of Land Management’s proposed “Conservation and Landscape Health” rule. The PLC’s comments had signatures from 55 state and national organizations, including the National Cattlemen’s Beef Association, American Sheep Industry Association, and the American Farm Bureau. PLC President Mark Roeber says public lands ranchers lead conservation out West. “Our cattle and sheep are the tools we use to feed this country and protect these landscapes,” he says. “We are committed to protecting these lands and the legacies we’ve built on them, especially when it means working to oppose government efforts that will cause more harm than good.” He also says if BLM is serious about lasting conservation, they should have talked to ranchers first and not forged ahead blindly with a controversial rule that will cause billions of dollars in harm to our western states and the American economy. *********************************************************************************** USDA Expands Risk Management Options The USDA is expanding insurance coverage options for specialty crops and other actual production history crop programs. Through the Risk Management Agency, it will expand the availability of enterprise units to crops where they were previously not available, giving agriculture producers greater options to manage risk. An enterprise unit allows a producer to insure all acres of the insured crop in the county together, as opposed to other unit structures that separate the acreage for insurance. Enterprise units are beneficial because of the lower premium rates offered to recognize the lower risk associated with geographic diversification. In general, the larger the enterprise unit, the lesser the risk and the greater the enterprise discount. “This expansion gives producers more choices on how they can protect themselves,” says RMA Administrator Marcia Bunger. Several crops will have enterprise units available next year, including alfalfa seed, cultivated wild rice, forage production, onions, and others. *********************************************************************************** “Beef. It’s What’s for Dinner” Live Cook Along Cookbook author and social media influencer Shereen Pavlides (Sheh-REEN Pav-LEE-days) will host a live cook-along from the National Cattlemen’s Beef Association Culinary Center. The event is on Tuesday, July 11, at 4 pm Mountain time. Pavlides will showcase beef on her popular “Cooking with Shereen” Instagram page. Her social media work has earned her more than six million followers across her Instagram, Tik Tok, and Facebook pages. Her followers will be invited to visit BeefItsWhatsForDinner.com prior to the cook-along, where they’ll see a grocery list and the event details. During the event, she’ll teach her audience how to make one of her favorite recipes – Jamaican Jerk Steak with Coconut Rice. The NCBA is excited to partner with a well-known influencer. “Partnering with an influencer like Shereen allows us to tap into a new audience and introduce the brand to thousands of consumers,” says Clark Price, Federation Division Chair for NCBA. *********************************************************************************** River Level “Whiplash” Continues The Upper Mississippi River experienced high water conditions due to significant snowfall in the Upper Midwest in late winter and early spring. Even after the high-water conditions that resulted from the snow melt, Mike Steenhoek (STEEN-hook) of the Soy Transportation Coalition says he was worried about quickly returning to low water levels on the river system. “I was worried that any prolonged stretch of dry weather could result in swinging right back to low water conditions,” Steenhoek says. “That has unfortunately occurred.” He also says it serves as a reminder that drought not only inhibits the ability to grow a crop, but it also inhibits our ability to transport that crop. Recent low river gauge readings in St. Louis and Memphis show how barge transportation could be challenging when our export season picks up in late summer and early fall. Low levels may again force companies to reduce tow sizes and freight amounts.
| Rural Advocate News | Monday July 10, 2023 |
Top 5 Things to Watch - July WASDE and Weather Patterns OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of July 9. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. WASDE Wednesday: Markets get an early week shot of news, with Tuesday's WASDE (World Supply and Demand Estimates) report from USDA. A preview of report expectations will be available on all our digital platforms Monday. On Tuesday, we'll have initial numbers in our Flash story just after 11:00 a.m. Central, followed by updates and analysis through the following half hour. As always, DTN Lead Analyst Todd Hultman will have an online discussion of the report at 12:30. 2. Acreage Flip-Flop: In addition to the WASDE report, we'll be watching continued market reaction to recent flip-flops between corn and soybeans news. Last month USDA set planting estimates at 94.1 million acres of corn. DTN Lead Analyst Todd Hultman notes that even with drought-stricken conditions, 94 million acres can produce a lot of corn, and that could begin to weigh on prices, frustratingly so to those in the dry. Soybeans did on 180 on that, with USDA's June 30 report pegging acres in at 83.5 million: That's not enough, even with bushel-per-acre averages in the mid-50s, to meet all the demand folks have been talking about for a year. 3. Did we Mention the Weather? The week of July 9 temperatures will be near to below normal across the Corn Belt, near to above normal elsewhere. The southern U.S. should continue to see showers from an active front. A low in Canada sends a couple of cold fronts into the Corn Belt, which also ups the shower potential there. But these will unlikely be enough to fix any shortages of subsoil moisture. DTN subscribers can get more details from our Ag Weather Brief, prepared daily by DTN ag meteorologists. 4. Hear our Experts: To catch the latest on the markets and weather crossroads, see our new weekly video "In the News." DTN Farm Business Editor Katie Dehlinger hosts this chat with analyst Todd Hultman and DTN Ag Meteorologist John Baranick. 5. Weekly Economic Reports: In addition to WASDE, we'll continue to track ag and non-ag economic signals throughout the week. Monday we'll see export inspections numbers at 10 a.m. CDT, with reaction to USDA Crop Progress at 3 p.m. Wednesday will see the release of the U.S. Labor Department's consumer price index for June at 7:30 a.m.; the Energy Department's weekly energy inventories is at 9:30 a.m., followed by USDA's WASDE and Crop Production reports at 11 a.m. On Thursday morning we'll see USDA's weekly export sales report, the U.S. jobless claims and an update of the U.S. Drought Monitor, all due out at 7:30 a.m. CDT. U.S. Energy Department's report on natural gas storage is at 9:30 a.m. We finish the week with USDA's export sales report and the U.S. unemployment report are set for 7:30 a.m. CDT Friday, followed by the University of Michigan's index of U.S. consumer sentiment at 9 a.m.
| Rural Advocate News | Monday July 10, 2023 |
Monday Watch List Markets Back from the weekend, traders will catch up on the latest weather events and forecasts affecting crops. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. DTN's preview of Wednesday's USDA reports will also be out early Monday. Weather A disturbance will bring scattered, strong to severe storms to the central and Southern Plains and portions of the Upper Midwest Monday afternoon into Monday evening. Most areas will see less than a half inch of rain from these storms, but isolated higher amounts up to one inch are possible.
| Rural Advocate News | Friday July 7, 2023 |
Purdue Study Reports 40% More Injuries in Grain Storage Facilities Last year saw a 40 percent increase in the number of injuries and fatalities in confined spaces across agriculture. Purdue University released its 2022 summary of accidents involving agricultural confined space-related injuries and deaths. The summary reported 83 cases, 24 of which were fatal and 59 nonfatal cases involving agricultural confined spaces. That’s almost a 41 percent increase over the 59 cases in 2021. These numbers are approximate, as the study authors realize not every case gets reported. Additionally, the 42 grain-related entrapments represented a 45 percent increase over 2021. Of the 41 non-grain-related cases, incidents included livestock waste handling facilities, entanglements inside confined spaces, falls from confined space structures, and grain dust explosions or fires. Edward Sheldon of Purdue’s Agricultural Safety and Health Program says confined-space incidents continue to result in a significant number of injuries and fatalities. “Use best-management practices to keep yourself and employees safe,” Sheldon says. *********************************************************************************** NCGA: Don’t Pick Winners and Losers The National Corn Growers Association submitted comments to the Environmental Protection Agency regarding its proposed emissions standards. The corn growers are calling on the agency to open pathways for all low-carbon fuels and technologies as it finalizes its multi-pollutant emissions standards for light- and medium-duty vehicles for model years 2027-2032. “For automakers to use new technologies and enhanced engines to meet stringent standards, they need updated fuel that enables new vehicles and fuels to work as a system to enhance greenhouse gas and other tailpipe emissions reductions,” says NCGA President Tom Haag (HAYG). NCGA says the proposal picks winners and losers and places ethanol on the losing side. “Clean octane from today’s ethanol is 50 percent lower in GHG emissions than gasoline and replaces the most harmful hydrocarbon aromatics to improve air quality and prevents adverse health impacts,” Haag says. “EPA failed to broaden the solutions that reduce transportation emissions.” *********************************************************************************** Soybean Meal Opportunities in Animal Nutrition Collaboration between animal nutritionists and the soy checkoff could bring additional value opportunities for U.S. soybeans, ultimately benefiting both animal agriculture and American farmers. The impact spans the poultry, pig, dairy, and aquaculture sectors. The checkoff brings together industry leaders as a part of its Animal Nutrition Working Group. The group advises checkoff leaders on research investments with the highest value for farmers and the industry. USB’s new strategic plan consists of three priorities for soybean meal, including the overall nutritional composition, improved measurement of anti-nutritional factors, and the resulting benefit to animal production, performance, and health. Soybean meal continues to be the standard for all other protein feedstuffs. This team of nutritionists examines how soybean meal can get used properly beyond just its protein content. One big goal of the collaboration is to encourage a shift toward total value-based ingredient decisions on the production and processing sides of the supply chain. *********************************************************************************** EU Agency Sees No Reasons to Block Glyphosate The European Food Safety Agency says it hasn’t identified areas of concern that would stop the reapproval of glyphosate for use in the EU. Market Screener says EU approval of the widely-used chemical is set to expire at the end of 2023. The agency’s conclusion is a key part of the process of deciding whether renewal will happen. The World Health Organization decided in 2015 that glyphosate was “probably” carcinogenic to humans. Bayer points out that decades worth of health studies show that glyphosate is safe for humans to use. The European Commission will determine whether to propose glyphosate for renewal based in part on the EFSA conclusion. Bayer says it welcomes the agency’s finding and feels it laid the groundwork for successfully renewing glyphosate in the European Union. The food safety agency says even with missing residual trials, its experts concluded there would not be a major concern for consumers. *********************************************************************************** Farm Bill Doubtful to Override California’s Prop 12 Farmers and ranchers are slightly more optimistic that Congress will get a new farm bill passed this year. However, Successful Farming says they don’t think the farm bill will get used to overturn California’s Prop 12 animal welfare law. The pork industry is looking for a legislative way to override the requirement after losing a Supreme Court challenge. About 36 percent of the farmers surveyed in the Purdue University/CME Group’s Ag Economy Barometer say it’s not likely that Congress will overturn Prop 12 in the new farm bill, while 40 percent say they are uncertain about the prospects of a legislative fix. One-fourth of the farmers in the most recent Purdue Survey say it’s at least somewhat likely that Congress will take on Proposition 12 in new farm bill legislation. In contrast, only 37 percent of farmers say it’s still likely a farm bill will get put into law this year. *********************************************************************************** Organic Association Elects New President The Organic Trade Association announced its new leadership team consisting of the board of directors and the president. Tracy Favre (FARV) is the new president and is excited to jump into her new role. She’s worked in natural resource management and the organic sector for over 30 years. Favre served on the National Organic Standards Board from 2012-2017, ending her tenure as the board president. “I’m honored to be serving as the new OTA Board president,” she says. “The organic industry is at an important point in its growth.” Tom Chapman, CEO of the OTA, says they’re excited to welcome the new president and board. “We look forward to working with these dedicated volunteer leaders to keep moving organic forward,” he says. “The new board is committed to working together with members and staff to achieve OTA’s mission of growing and protecting organic.” The 15 board members serve three-year terms.
| Rural Advocate News | Friday July 7, 2023 |
Friday Watch List Markets USDA's export sales report will be out at 7:30 a.m. CDT Friday, the same time as the U.S. Labor Department provides nonfarm payrolls and the monthly unemployment report for June, and Canada provides its unemployment report -- possible clues for future interest rates. The U.S. Energy Department's weekly report of natural gas storage will be out at 9:30 a.m. Traders continue to keep a close watch on the latest weather forecasts. Weather A disturbance in the Plains will continue to bring areas of showers and thunderstorms eastward into the western half of the Midwest on Friday. Some of these thunderstorms could be strong to severe, but most likely in the Southern Plains. Milder temperatures are filling in across the Corn Belt and will continue to trend that way through next week.
| Rural Advocate News | Thursday July 6, 2023 |
Farmer Sentiment Rebounds on Future Optimism Purdue University/CME Group’s Ag Economy Barometer Index rose 17 points in June to a reading of 121. The upswing in farmer sentiment was driven by producers’ more optimistic view of the future. However, their perception of current conditions remained unchanged from May. The Index of Future Expectations rose 25 points to 123, while the Index of Current Conditions held flat at 116 in June. Optimism about U.S. agriculture’s future and a more optimistic outlook on interest rates helped explain producers’ more positive view of the future in the June survey. But current conditions continue to present challenges for some producers. This month, four out of ten producers stated that their financial situation has deteriorated compared to a year ago. The Farm Financial Performance Index also rose this month, up ten points from May. The Farm Capital Investment Index rose five points in June to 42, while optimism on farmland values also rose. *********************************************************************************** Three Years of USMCA July 1 was the third anniversary of the U.S.-Mexico-Canada Agreement going into effect, and the U.S. pork industry is happy to celebrate the occasion. Pork exports to America’s neighbors, especially Mexico, have soared under the successor to the North American Free Trade Agreement. Since USMCA took effect, U.S. pork exports to Mexico have increased from almost $1.2 billion in 2020 to more than $2 billion last year. Exports to Canada have grown from about $853 million in 2020 to $867 million in 2022. For the first four months of this year, both countries are on pace to take in record amounts of American pork during 2023. Exports to Mexico and Canada totaled nearly $3 billion, accounted for 38 percent of all U.S. pork exports in 2022, and supported more than 16,000 jobs. The USMCA maintained the zero-tariff rate on pork traded in North America which was first established under NAFTA. *********************************************************************************** Groups Want Fairness in Tailpipe Emissions Standards America’s farmers, fuel marketers, retailers, and renewable fuel producers called on the Environmental Protection Agency to change its proposed standards for tailpipe emissions. The groups want the agency to adopt a market-oriented, technology-neutral approach to transportation decarbonization in its final tailpipe emissions standards for 2027-2032 light- and medium-duty vehicles. In a letter to EPA Administrator Michael Regan, the groups say the proposed rule favors electric vehicles while failing to consider the decarbonization potential of existing biofuels that can improve the emissions profile of a majority of cars on the road today. “EPA should use the best available science to accurately account for the full lifecycle carbon intensity associated with particular fuels and technologies,” the groups say. They also feel the proposed rule “artificially tilts the scale” toward electric vehicles without considering other options. The National Corn Growers Association, National Farmers Union, and Growth Energy were among the groups signing the letter. *********************************************************************************** Sorghum Checkoff Program Celebrates 15 Years Sorghum industry leaders marked a milestone on July 1, the 15th anniversary of the United Sorghum Checkoff Program. Since its founding, the Sorghum Checkoff has dedicated its efforts to advancing sorghum profitability through innovative research, promotion, and education. “We’ve made significant strides in the past 15 years, and we’re deeply committed to continuing to advance the crop for U.S. sorghum producers and end-users around the world,” says Sorghum Checkoff CEO Tim Lust. “Our board has invested more than $46 million into research aimed at optimizing sorghum as a robust, profitable crop for several value-added end-use markets.” The Checkoff has invested in cutting-edge research to advance production techniques. Key agronomic milestones include introducing the first-ever over-the-top weed and grass control in sorghum. The Sorghum Checkoff also plays a key role in expanding international markets, including countries like China, and it’s boosted public awareness about the nutritional and environmental benefits of sorghum. *********************************************************************************** Applications Open for AFTs Brighter Future Fund American Farmland Trust has opened applications for 2023’s Brighter Future Fund Program. It helps farmers nationwide improve farm viability, access, transfer, or permanently protect farmland or adopt regenerative agricultural practices. The last day to submit applications is July 15. The Brighter Future Fund provides grants of up to $10,000 per project. A project may involve one or more individual farmers or farm families, and projects will be awarded on a one-per-farm basis. “Farmers and ranchers work hard to provide for their communities, their families, and their land, but they sometimes need help,” says an AFT news release. “The Brighter Future Fund can provide that help.” The Brighter Future Fund was launched in 2020 to help farmers launch, grow, and sustain farms despite forces impacting the food and agricultural system, including COVID-19, changing markets, and severe weather. Applications will be reviewed and awarded in the order they are received. Go to farmland.org. *********************************************************************************** Retailers Support Reliable Rail Service Act The Agricultural Retailers Association applauded Senator Tammy Baldwin’s Reliable Rail Service Act. “ARA appreciates Senators Baldwin (D-WI) and Roger Marshall (R-KS) for leading legislative efforts to address the continuous rail service problems faced by our industry,” says ARA President and CEO Daren Coppock. “Those challenges have caused supply chain disruptions and negatively impacted other shippers within the agricultural industry.” The retailers want Congress to tackle head-on the significant cost increases and service disruptions that harm the businesses of its ag retailer members and their farmer customers who rely on freight rail transportation to deliver the critical crop input products to feed and fuel the nation. Common carrier obligations still lack a clear definition. “This proposal will provide some needed clarity to the common carrier obligation, improve the Surface Transportation Board’s oversight authority and help ensure railroads provide a reliable service at reasonable rates for shippers, which ultimately benefits consumers,” says Coppock.
| Rural Advocate News | Thursday July 6, 2023 |
Thursday Watch List Markets U.S. weekly jobless claims, the U.S. trade deficit for May and an update of the U.S. Drought Monitor will all be out at 7:30 a.m. CDT Thursday, followed by the U.S. Energy Department's weekly energy inventories at 10 a.m. USDA's weekly export sales report will be out Friday, due to this week's holiday schedule. Weather A cold front has stalled in the Southern Plains where some heavier showers are located Thursday morning. The eastern section of the front will continue to relieve heat across the eastern Midwest and will produce some showers as well. An old front will also be active across the Southeast, but it will be back in the Plains that will garner most of the attention Thursday. The front will be a focal point for severe storms but so will a disturbance moving toward the Rockies this evening across the central High Plains.
| Rural Advocate News | Wednesday July 5, 2023 |
NCGA Call to Action on EPA’s Emissions Standards Proposal The National Corn Growers Association is urging farmers to submit comments to the Environmental Protection Agency regarding a new proposal on multi-pollutant emissions standards. The call-to-action was launched after the agency first announced the proposal in April. The comment period deadline closes on July 5. The new standards would effectively force automakers to produce electric vehicles at an increasingly rapid rate to comply with the stringent proposed rule. NCGA leadership believes with this one-size-fits-all approach, EPA is ignoring other low-carbon solutions like ethanol. The proposal picks winners and losers in the energy sector and puts biofuels on the losing side. If it’s left unchanged, this rulemaking has the potential to remove hundreds of millions of bushels of domestic corn demand from the market each year. The NCGA is encouraging all members and advocates to let the EPA know that ethanol is a low-carbon solution to emissions reduction that is readily available. *********************************************************************************** Farmers Planted More Sorghum in 2023 Growers planted 6.81 million acres of sorghum for all purposes this year, up eight percent from last year. Kansas and Texas, the top sorghum-producing states, account for 77 percent of the country’s acreage. Growers expect to harvest 5.94 million acres for grain, up 30 percent from last year. Approximately 73 percent of the nation’s sorghum acreage was planted by June 18, five percentage points behind the previous year and nine percentage points behind the five-year average. By, June 18, 15 percent of the nation’s sorghum acreage had reached the headed stage, equal to last year but one percentage point behind the five-year average. Sixty percent of the nation’s sorghum acreage was rated in good to excellent condition on June 18, three percentage points above the previous week and 14 percentage points above the previous year. In the meantime, the National Sorghum Producers are now accepting entries for the 2023 National Sorghum Yield Context. *********************************************************************************** USDA: SNAP Payment Error Rates Rise The combined payment error rate for the Supplemental Nutrition Assistance Program payments went from 7.3 percent in fiscal year 2019 to 11.5 percent in fiscal year 2022. During those years, USDA’s Food and Nutrition Service says states were providing pandemic-related benefits while coping with staff shortages. The individual state error rates varied dramatically. The report says Alaska was the highest state at almost 57 percent, while many other states were far below the national average. ‘”As part of the flexibilities granted to states beginning in the spring of 2020, Congress removed the requirement for states to conduct quality control reviews, which resulted in USDA being unable to publish the annual national and state payment error rates for fiscal years 2020 and 2021,” FNS said in a release. Stacy Dean, USDA Undersecretary for Food, Nutrition, and Consumer Services, says, “The circumstances put an incredible strain on program administration. The rates reflect those challenges.” *********************************************************************************** USDA Expands Crop Insurance Coverage for Camelina The Risk Management Agency announced it will expand insurance for camelina (Kam-eh-LEE-nah) in the Southern Plains and the Pacific Northwest. The move is intended to provide additional grower certainty as demand for the renewable fuel feedstock crop rises across the U.S. The newly adopted program by the RMA now allows written agreements in select counties in many states, including Colorado, Kansas, Nebraska, Oklahoma, and several others. Global Clean Energy Holdings and its subsidiary, Sustainable Oils, Inc., the world’s largest camelina producer, collaborated with the USDA to make this expansion happen. “We like to say that camelina protects like a cover crop and pays like a cash crop, benefits that are increasingly important to strengthening our soil health and rural agricultural communities,” says Mike Karst, President of Sustainable Oils. Camelina is a nonfood crop used as an ultra-low carbon feedstock for renewable fuel. For information, go to the USDA Risk Management website. *********************************************************************************** New ASF Variant Found in China Chinese scientists say they’ve identified what appears to be a new strain of the African Swine Fever virus working its way through three counties in the country. A paper published in the journal Nature Communications says the new virus appears to be a hybrid of the new genotype 2 strain that caused the 2018 outbreak of ASF that began in China and a more recent but less deadly strain identified in 2021. Chris Netherton, head of ASF Vaccinology at the Pirbright Institute, says that the new variant is called genotype 1 for its apparent similarities to older versions of the virus. It causes chronic disease in pigs, but it’s not as deadly as genotype 2, which can kill over 80 percent of the hogs it infects. Feed Strategy Magazine says the data from the Chinese study doesn’t appear to show the new strain is more contagious than the existing variants of ASF. *********************************************************************************** Applications Open for the Research Ambassador Program The National Corn Growers Association is looking for qualified graduate students to apply for the Research Ambassador Program. If you’re interested in building a personal network of future agricultural leaders as you begin your career, apply today. To ensure all interested applicants have a chance at this opportunity, NCGA has extended the deadline for applications to its Research Ambassador Program to July 15. Graduate students who are citizens or permanent residents of the United States and are involved in research broadly related to corn production are eligible to apply. Selected students get a $2,500 award, up to $750 to offset travel and registration costs for scientific conferences, and fully-funded travel to participate in NCGA events throughout the year. Ambassadors must demonstrate academic excellence, leadership potential, and be actively involved in research relevant to producing corn. The program’s goal is to build a network of future leaders in the agriculture sector.
| Rural Advocate News | Wednesday July 5, 2023 |
Wednesday Watch List Markets Back from the 4th of July, U.S. grain and livestock futures open at 8:30 a.m. CDT Wednesday, followed by a report on U.S. factory orders for May at 9 a.m. and minutes from the latest Fed meeting at 1 p.m. Traders will continue to keep a close watch on weather and the latest forecasts. Weather An old front continues to be active across southern portions of the country on Wednesday. But it's one that is moving through the Corn Belt garnering most of the attention as it produces areas of showers and thunderstorms over some of the driest parts of the country. Not all areas will be hit as the front moves through, but chances are good across the Central Plains into the southern Midwest for another round of good rain but also some severe storms.
| Rural Advocate News | Monday July 3, 2023 |
USDA Releases June Planted Acreage Estimates The USDA released its June Planted Acreage Estimates Report, and it shows corn planted area in 2023 is estimated at 94.1 million acres, up six percent or 5.52 million acres higher than last year. It’s the highest planted acreage in the United States since 1944. Soybean planted area for 2023 is estimated to be 83.5 million acres, down five percent from last year. The all-wheat planted area for 2023 is estimated at 49.6 million acres, up nine percent from 2022. At 37 million acres, the 2023 winter wheat planted area is up 11 percent from last year but down one percent from the previous estimate. Of that total, about 25.7 million acres are Hard Red Winter Wheat, 7.66 million acres are Soft Red Winter Wheat, and 3.68 million acres are White Winter Wheat. The all-cotton planted area for 2023 is estimated at 11.1 million acres, down 19 percent from last year. *********************************************************************************** USDA Grain Stocks Report Shows Lower Corn, Beans, and Wheat The USDA released its June Grain Stocks Report, and corn, soybean, and wheat stocks are all down compared to June 2022. Corn is down six percent from last year, soybean stocks are down 18 percent, and all-wheat stocks are 17 percent lower than last June. Corn stocks in all positions on June 1 totaled 4.11 billion bushels. Of that total, 2.22 billion bushels are stored on farms, five percent higher than last year, while off-farm stocks were 1.89 billion, 15 percent lower. Soybeans in all positions were 796 million bushels. On-farm stocks at 323 million bushels were three percent lower. Off-farm stocks were down 26 percent from last year at 473 million bushels. Old crop all-wheat stored in all positions was 580 million bushels, down 17 percent from June 2022. On-farm stocks were 124 million bushels, up 34 percent, and off-farm stocks of 456 million bushels were 25 percent lower. *********************************************************************************** Derecho Hits Farm Country A derecho (deh-RAY-cho) storm system hit parts of the Midwest last week. Hundreds of thousands had no power, homes and cars were smashed, and fields of crops were flattened by the high winds. The line of severe thunderstorms contained wind gusts of 90 miles per hour. The storm moved quickly, starting in southeast Nebraska and northeast Kansas before pushing further east into Illinois and Indiana. “It was a classic line of severe thunderstorms that met all of the criteria for a typical derecho,” says Jonathan Erdman, a senior meteorologist with weather.com. “These types of storms typically form in late spring or early summer and are long-lived, widespread, and damaging wind events.” A derecho typically forms along the edge of an excessively hot and humid airmass like the heat dome that’s been parked over the Southern Plains and lower Mississippi Valley. “They often ride the northern edge of heat domes,” Erdman says. *********************************************************************************** Farmers’ Share of July Fourth Food Dollar Continues to Shrink The National Farmers Union released the 2023 numbers for the Farmers’ Share of the Food Dollar Report covering several items typically found at a Fourth of July cookout. The NFU says every year, the troubling trend of farmers earning less of the dollars Americans spend at the grocery store is continuing. “Whether it’s the highly consolidated meatpacking industry or harmful mergers in the private sector, farmers and consumers are being squeezed out of their hard-earned money,” says NFU President Rob Larew. “It doesn’t have to be that way.” For example, eight-count hamburger buns retail for $3.49, but the farmers’ share is only ten cents. Party-size potato chips are $5.99, but the farmers’ share is 29 cents. Two pounds of ground beef is $11.07, but farmers get just $3.42. Last year, the USDA said the farmers’ share of the food dollar bottomed out at only 14.5 cents of every dollar spent. *********************************************************************************** U.S. Hog Inventory is Slightly Higher As of June first, U.S. farms contained 72.4 million hogs and pigs, which was up slightly from June 2022 and down one percent from March 1, 2023. That’s according to the Quarterly Hogs and Pigs report published last week by the USDA’s National Agricultural Statistics Service. Of the 72.4 million hogs and pigs, NASS says 66.2 million were market hogs, while 6.15 million were kept for breeding purposes. Between March and May 2023, 32.9 million pigs were weaned on U.S. farms, one percent higher than last year. During the same period, America’s hog and pig producers weaned an average of 11.36 pigs per litter. Producers intend to have 2.94 million sows farrow between June and August of this year and 2.95 million sows farrow between September and November. Iowa hog producers had the largest inventory among the states at 23.8 million head. Minnesota had the second-largest inventory of 8.7 million head. *********************************************************************************** ERS Finds Increasing Concentration in Ag and Food Sectors The USDA’s Economic Research Service looked into market concentration and its impact on competition. It’s a subject that’s attracted growing public scrutiny. The ERS study says market concentration, which is measured by the share of industry sales held by the largest firms, has increased sharply over the last four decades in many seed, livestock, and food retail markets. From 2018-2020, two seed companies accounted for 72 percent of planted corn acres and 66 percent of planted soybean acres in the U.S. In 2019, the four largest meatpackers accounted for 85 percent of steer and heifer slaughter and 67 percent of hog slaughter. In most metropolitan areas, five to six store chains account for most supermarket sales. Economic theory and empirical analysis demonstrate that high concentration can facilitate the exercise of market power, with firms driving sales prices above or livestock prices below the prices that would prevail in competitive markets.
| Rural Advocate News | Monday July 3, 2023 |
Top 5 Things to Watch - High Winds and Market Holidays OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of July 2. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. Weather Damage Updates: We'll continue to watch and update how these strong weather systems bring good and not-so-good news to various parts of the country. Rain will be easing drought conditions, and looks to be particularly good for the southern half of the U.S. Hopefully that won't include more damaging winds and hail. 2. Happy Independence Day: Markets will be closed July 4, with electronic markets reopening at 8:30 CDT Wednesday. We'll have grain and livestock market updates first thing Wednesday morning. Have a safe day celebrating and don't eat too many hotdogs. 3. Field Day Season: If you're traveling rural roads you can't help but see the sudden flush of bright field signs, a clue that field day season is upon us. The DTN/Progressive Farmer crew will be out and about, reporting on new products and things to come, as well as connecting with you. If you spot us at a field day in your area, say hello! 4. Hay and Forage Conditions: We're continuing to watch hay markets and forage conditions, particularly in the drier areas of the country. Farmers are in general reporting smaller grass hay crops, and prices remain strong. 5. Key Reports through the Week: Markets will key up on a number of economic reports coming out in the shortened week. Monday will see world manufacturing indices, including one from the U.S., at 9 a.m. CDT. USDA's weekly report of export inspections is at 10 a.m. and the Crop Progress report hits at 3 p.m. A new Fats and Oils report is due out at 2 p.m. Wednesday markets reopen, and we'll get the May U.S. factory orders report as well as the minutes from the latest FOMC (Fed) meeting. Thursday sees the weekly U.S. jobless claims report, the U.S. trade deficit for May and the highly anticipated U.S. Drought Monitor update. All those hit at 7:30 a.m. U.S. Energy Department's report on natural gas storage comes in at 9:30 a.m., followed by weekly energy inventories at 10 a.m. Friday we'll be watching the USDA export sales and the latest U.S. unemployment report, both set for 7:30 a.m. CDT.
| Rural Advocate News | Monday July 3, 2023 |
Monday Watch List Markets Manufacturing indices from around the world will be out early Monday, along with one for the U.S. at 9 a.m. CDT. USDA's weekly report of export inspections at 10 a.m., followed by the Fats and Oils report from NASS at 2 p.m. and Crop Progress at 3 p.m. U.S. grain futures close at their normal times Monday and open next at 8:30 a.m. CDT Wednesday. Weather A front from the weekend over the South and another moving down from Canada into the Northern Plains will produce areas of showers and thunderstorms Monday. Some severe weather will be possible in both areas. Some leftover heat remains across the Southeast and temperatures will be quite warm from Texas up into Minnesota as well, but fall dramatically behind the second front in the Northern Plains.
| Rural Advocate News | Friday June 30, 2023 |
NCBA Files Motion to Strike Down WOTUS The National Cattlemen’s Beef Association filed a motion in the U.S. District Court of Southern Texas asking it to strike down the Biden administration’s Waters of the U.S. Rule. The motion comes in light of the Supreme Court’s decision in Sackett v. EPA. “A full rewrite of the Biden administration’s WOTUS definition is the only path to comply with the Sackett decision,” says NCBA Chief Counsel Mary-Thomas Hart. “NCBA is seeking summary judgment in our lawsuit against the Biden WOTUS rule and urging the Southern District of Texas to strike the rule from the books.” Separate from the Sackett case, NCBA led a coalition in filing suit against the Biden rule to keep it from taking effect. NCBA helped secure injunctions in 27 states to temporarily halt the rule. “NCBA has been fighting the overreaching WOTUS rules for years, and this is the latest example of our fight,” says Hart. *********************************************************************************** USDA Investments Promote Competition and Strengthen the Supply Chain The USDA is making investments to increase independent meat and poultry processing capacity, expand market opportunities for farmers, and support a growing workforce in rural areas. “While American farmers and ranchers have been responding to the demand to produce more, their communities have struggled to see their share of benefits,” says Ag Secretary Tom Vilsack. “We’re committed to championing meat and poultry processors, increasing competition, and lowering the costs for working families.” USDA is providing 15 awards totaling $115 million in 17 states. The agency is also providing another five awards totaling $38 million through the Meat and Poultry Processing Expansion Program. USDA will also provide ten awards totaling $77 million under the Meat and Poultry Intermediary Lending Program. The announcement supports projects from Colorado, Connecticut, Maryland, Montana, and several other states. The investments will build a pipeline of well-trained meat processing workers and support safe workspaces with fair wages. *********************************************************************************** Colombia Lifts Ban on U.S. Poultry Exports Quick action resolved an issue that temporarily stopped American poultry product exports to Colombia, the tenth-largest market for those products. Colombia’s Ag Ministry instructed all Colombian ports to deny import permits to any poultry products beginning June 1 due to concerns about Highly Pathogenic Avian Influenza. Approximately $1.1 million worth of U.S. exports were impacted between June 3 and June 8. The Foreign Ag Service, Animal and Plant Health Inspection Service, and the U.S. Trade Representative worked together to leverage the free trade agreement to pressure Colombian officials to lift the ban. The cooperative effort brought a reversal to fruition on June 8. The previous denial of import licenses, stuck shipments of U.S. poultry, and the uncertainty of market access directly impacted consumers and American businesses. Tyson Foods, PriceSmart, and McDonald’s were some of the main companies hit by the ban. The market accounted for over $100 million in 2022. *********************************************************************************** Drought Tightens Grip on Midwest, Eastern Great Plains The Midwest and east-central Great Plains saw conditions worsen with widespread crop stress and lower stream flows in this week’s Drought Monitor. Heavy rains in parts of Ohio and Kentucky led to some improvements in the short-term drought. However, much of the Midwest saw conditions stay the same or get worse, especially in central Indiana, Illinois, Missouri, southwest Wisconsin, southeast Minnesota, and southeast Iowa. Almost completely-dry weather in Missouri and southern Illinois created potential problems for corn and soybean production. In southeast Iowa, producers reported rolling corn leaves and stunted soybeans. The weather was varied in the High Plains. Much of the northern parts, except for eastern Nebraska and eastern Kansas, saw widespread precipitation, some of it heavy. Conditions got drier in southeast Nebraska and northeast Kansas. Much warmer than normal temperatures covered the western half of the South. Most of the West was near to below-normal in temps during the week. *********************************************************************************** Former NCGA President to Lead MAIZALL John Linder, a former president of the National Corn Growers Association, was elected to serve as the president of MAIZALL (Mayz-all). The Ohio corn grower will lead the international farm organization that focuses on eliminating regulatory obstacles to innovation in agriculture. The group contains members from the U.S., Brazil, and Argentina. His one-year term starts on July 3, and NCGA’s current leadership expressed enthusiasm over the news. “John is a dedicated leader, and he will no doubt do an outstanding job leading MAIZALL,” says current NCGA President Tom Haag (HAYG). MAIZALL engages private sector stakeholders, national government officials, and leaders from international organizations like the World Trade Organization and the Food and Agriculture Organization. The goal is to work towards alignment on regulatory barriers to trade. “Trade is vital to American farmers,” Linder says. “As MAIZALL president, I will encourage foreign governments and international organizations to embrace science-based regulatory decision-making.” *********************************************************************************** NMPF Issues Letter on Lab-Produced “Milk” The National Milk Producers Federation sent a letter to the Food and Drug Administration regarding lab-produced fake “milk.” A company called Bored Cow calls its product milk, which the U.S. dairy industry says is completely false. “They take water and add what we believe to be one unidentified, lab-engineered ‘whey protein’ along with a highly processed concoction of food additives, preservatives, oil, sugar, and several added vitamins, and claims it is ‘animal-free dairy milk,” says NMPF President and CEO Jim Mulhern. “It’s baseless, absurd, and preposterous to call the resulting product ‘milk.’” The federation has repeatedly called on FDA to enforce its identity standards for milk as plant-based fakes have proliferated. It’s now warning the agency that lab-based milk imposters will be next without agency action. Lab-based milk imitators are following the plant-based playbook and plastering “milk” and other standardized dairy terms on products that have nothing in common with true dairy.
| Rural Advocate News | Friday June 30, 2023 |
Friday Watch List Markets Reports on U.S. personal incomes and consumer spending are due out at 7:30 a.m. CDT Friday, along with the PCE index for May, the Federal Reserve's favorite inflation indicator. The University of Michigan's index of consumer sentiment is set for 9 a.m., followed by USDA's Acreage and Grain Stocks reports at 11 a.m. Weather A hot ridge continues over the South-Central U.S. on Friday, and areas of thunderstorms will pass along the northern rim from Kansas and Nebraska through the Ohio Valley again throughout the day. While another derecho, like one that occurred on Thursday, is not anticipated early this morning, some areas of severe weather are likely to occur.
| Rural Advocate News | Thursday June 29, 2023 |
Ag Groups Motion Texas Court to Vacate Biden Waters of US Rule as EPA Starts Rewrite LINCOLN, Neb. (DTN) -- Agriculture groups asked a federal court in Texas to strike down the Biden administration's waters of the U.S. rule (WOTUS) even as the EPA announced this week it would rewrite and issue a new proposed rule by Sept. 1. Ag groups led by the National Cattlemen's Beef Association, American Farm Bureau Federation and others filed a motion for summary judgement in the U.S. District Court for the District of Southern Texas in Galveston on Wednesday, telling the court the recent ruling by the Supreme Court in Sackett v EPA establishes the Biden rule as "unlawful." The Texas court previously issued a preliminary injunction against the rule for the states of Texas and Idaho. The ag groups asked the court to require the EPA and the U.S. Army Corps of Engineers to apply the Supreme Court's decision as the "operative framework" for making jurisdictional determinations and approving permit applications, until the administration promulgates a new rule. The Supreme Court declared unlawful the agencies' use of the significant-nexus test when making Clean Water Act determinations. The EPA motioned for a stay in a lawsuit filed in a federal court in North Dakota this week, telling the court the agency will be issuing a new proposed rule by or before Sept. 1. "Business plaintiffs' members and their clients who operate in every state remain subject to that rule in the 23 states in which it is not enjoined," the ag groups said in their Texas motion. "Worse, although Sackett determines the agencies' jurisdiction in the vast majority of circumstances, the Corps has announced that it will not issue AJDs (jurisdictional determinations) anywhere until the agencies promulgate a new rule, putting business plaintiffs' members and their clients at continuing risk of criminal and civil penalties for ordinary use of their property. Only vacatur of the rule, agency adherence to Sackett to process AJDs and permits and prompt promulgation of a new rule can end this arbitrary roadblock to the lawful use of the land." NCBA's Chief Counsel Mary-Thomas Hart said in a press release, "A full rewrite of the Biden administration's WOTUS definition is the only path to comply with the Sackett decision." In its motion for summary judgement the ag groups said the court should "immediately supply clear directions to Corps offices and other stakeholders that ephemeral and isolated waters are no longer jurisdictional" and that jurisdictional determinations should reflect that. "Delay in providing clear direction perpetuates the conduct for which the agencies were admonished in Sackett," ag groups said. "There is no warrant for the agencies, after nearly two decades during which they unlawfully expanded their authority by imposing a significant nexus test on land users, to continue to hold the threat of criminal and civil sanctions over businesses for ordinary land uses now that the Supreme Court has established clear jurisdictional rules."
| Rural Advocate News | Thursday June 29, 2023 |
Reintroduced Legislation Would Improve Freight Rail Service Lawmakers in the U.S. Senate Thursday reduced the Reliable Rail Service Act. The legislation seeks to help address the unreliable service and high costs of rail shipping for American businesses. Supported by members of the agriculture industry, labor organizations, energy producers, and manufacturers, the bill ensures the largest freight railroads provide American businesses reliable services at reasonable rates. Rail shippers, including farmers, continue to face poor service, significant service disruptions, and sky-high prices that are impacting communities, and consumers, all while the nation's largest railroads' profits are at record highs. Senators Roger Marshall, a Kansas Republican, and Tammy Baldwin, a Wisconsin Democrat, reintroduced the legislation. Marshall says, "Service failures hurt our shippers who use the rail to deliver their products to key export facilities." The bill establishes specific criteria for the Surface Transportation Board to consider when evaluating whether carriers are meeting their common carrier obligation to give shippers much-needed certainty that is currently lacking. *********************************************************************************** Lawmakers Seek PFAS Farm Bill Funding A group of lawmakers is asking for Farm Bill funding to help rural communities with PFAS contamination. In a letter to leadership of the House and Senate Agriculture Committees, the lawmakers say, "It is imperative that we take decisive action to provide assistance and relief to those affected by PFAS.” The use of PFAS chemicals in various industrial and commercial applications has led to widespread contamination, posing a significant threat to our environment, public health, and agricultural systems. Farmers and rural communities, in particular, bear the brunt of PFAS contamination, according to the letter, as it affects their drinking water, soil quality, and livestock health. The lawmakers urge Farm Bill writers to include the Healthy H2O Act within the legislation. The bill aims to address PFAS contamination in water supplies by funding water testing, treatment, and remediation. The effort was led by Senator Democrat Tammy Baldwin of Wisconsin and Susan Collins, a Republican from Maine. *********************************************************************************** USDA Solicits Nominations to the Tribal Advisory Committee The Department of Agriculture Wednesday announced it will establish a Tribal Advisory Committee and is requesting nominations for membership. The notice is among USDA’s efforts to remove barriers to service for tribal governments, citizens, and tribal nations. Agriculture Secretary Tom Vilsack called the committee “an important step towards ensuring tribal perspectives are well represented at USDA and positioned to inform how the Department meets its trust responsibility to tribes across the nation." Authorized in the 2018 Farm Bill, the Tribal Advisory Committee provides advice and guidance to the Secretary of Agriculture on matters relating to tribal and Indian affairs. As a federal advisory committee, the Tribal Advisory Committee will provide invaluable recommendations on USDA programs and policies, including through an annual report to Congress. The nomination period for membership to serve on this advisory committee will be open through August 14, 2023. Specific information and nomination instructions are available in the Federal Register. *********************************************************************************** Genetically Modified Seed Prices Rising Faster Than Non-GM Prices farmers paid for crop seed increased significantly faster than the prices farmers received for crop commodities between 1990 and 2020. USDA’s Economic Research Service reports that during that period, the average price farmers paid for all seed rose by 270 percent, while the crop commodity price index rose 56 percent. For crops planted predominantly with genetically modified seed – corn, soybeans, and cotton – seed prices rose by an average of 463 percent between 1990 and 2020. During this period, GM seed prices peaked in 2014 at 639 percent above 1990 price levels. Despite their higher cost, GM crop varieties have provided significant productivity gains for farmers, partly through higher yield, but also by lowering farm production costs. For example, GM traits for insect resistance reduce the need for insecticide applications. Similarly, GM traits for herbicide tolerance provide a substitute for mechanical tillage, thus reducing labor, machinery, and fuel previously used for controlling weeds. *********************************************************************************** Survey Highlights Barriers to Effective Herbicide-Resistant Weeds Management A recent survey of certified crop advisors in all 50 U.S. states shows they are concerned about the escalation of herbicide resistance and the impediments to effective weed management. The Weed Science Society of America survey found that four out of ten crop advisers were concerned about the challenges in managing herbicide-resistant weeds over the next five years – a significantly higher percentage than those concerned about resistance to insecticides or fungicides. Concern was greatest among those working with large-scale growers in the West or the Great Plains states and those supporting corn, rice or beet production. Crop advisors listed economics as the number one barrier to effective management of herbicide-resistant weeds, followed by management complexity, supply constraints, limited available technology, time constraints and the misguided perception that a "silver bullet" will emerge to support the management-resistant weeds. In addition, 82 percent of those surveyed agree or strongly agree that growers need to evolve how they think about resistance management. *********************************************************************************** NACD Applauds USDA Bolstering Working Lands for Wildlife Program The National Association of Conservation Districts welcomed this week’s expansion of USDA’s Working Lands for Wildlife program. The expansion includes close alignment of the Natural Resources Conservation Service and Farm Service Agency, centered around WLFW Frameworks for Conservation Action. The frameworks are biome-level conservation strategies rooted in the latest science and best practices. Their research and conservation tools are used to align stakeholders and prioritize conservation actions to achieve landscape scale objectives and benefit both people and wildlife. NACD President Kim LaFleur says, “This strategy will provide producers and land stewards in critical biomes across the country the opportunity to voluntarily implement conservation that enhances wildlife habitats. Since 2010, more than 8,400 producers in 48 states have teamed up under WLFW to conserve and enhance nearly 12 million acres of working agricultural lands. Conservation districts, land operators, and partners can learn more about participating in the WLFW program by visiting the program’s webpage and talking with their local NRCS staff.
| Rural Advocate News | Thursday June 29, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, first quarter U.S. GDP and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas supplies follows at 9:30 a.m. and traders will continue to pay close attention to the latest weather forecasts. Weather Disturbances moving through the Corn Belt will bring rounds of showers and thunderstorms on Thursday, especially from Nebraska to Indiana. Some of these storms may become severe with wind and hail the most likely threats and centered on Illinois, where the rain would be most welcome. South of this zone of precipitation, heat continues to build with triple digits extending up into Missouri and perhaps southern Illinois.
| Rural Advocate News | Wednesday June 28, 2023 |
Cost of Summer Cookout Down Slightly From 10-Year High Celebrating the 4th of July with a cookout will cost significantly more than two years ago, although prices have fallen slightly from record highs in 2022. Families will pay $67.73 to host an Independence Day cookout with ten family members or friends, based on the 2023 American Farm Bureau Federation marketbasket survey. The $67.73 grocery bill is down three percent from 2022, but still approximately 14 percent higher than prices were just two years ago. Last year set a record high since AFBF began the survey in 2013, and 2023 comes in as the second-highest cost. The cookout favorites include cheeseburgers, chicken breasts, pork chops, homemade potato salad, strawberries and ice cream, among other products. The marketbasket survey shows a year-to-year increase in the cost of hamburger buns, beef and potato salad, while there are drops in the cost of chicken breasts, lemonade and cookies. Although historically high, the cost of the cookout breaks down to less than $7 per person. *********************************************************************************** USDA: Cost of Home-grilled Cheeseburger up 10 Cents From 2022 Following the Farm Bureau marketbasket survey, USDA’s Economic Research Service Tuesday reports that cheeseburgers will cost more this year for an Independence Day cookout. USDA says that in May 2023, the ingredients for a home-prepared ¼-pound cheeseburger totaled $2.17 per burger, an increase of 10 cents from 2022. Prices for cheeseburger ingredients grew more slowly over the year than prices for all groceries, which rose 5.8 percent from May 2022 to May 2023. Ground beef made up the largest cost of the burger at $1.24, and Cheddar cheese accounted for $0.37. Both these items increased in price by 3.5 percent between 2022 and 2023 and together accounted for half the increase in costs. Bread prices rose the fastest, by 21.5 percent, and added 4 cents to the cost of a burger between 2022 and 2023. Tomato prices fell slightly over the year, but an increase in lettuce prices added one cent to total costs. *********************************************************************************** USDA Announces Investment in Wildlife Conservation The Department of Agriculture Tuesday expanded wildlife conservation investments by $500 million over the next five years. The effort leverages all available conservation programs, including the Conservation Reserve Program, through its Working Lands for Wildlife effort. The commitments will ramp up the conservation assistance for farmers, ranchers, private forest owners and tribes with a focus on working lands in key geographies across the country. The funding will help deliver a series of cohesive Frameworks for Conservation Action, which establish a common vision across the partnership of public and private interests and goals for delivering conservation resources in a given ecosystem, combining cutting-edge science with local knowledge, according to USDA. The new funding includes $250 million from the Agricultural Conservation Easement Program and $250 million from the Environmental Quality Incentives Program. USDA Undersecretary Robert Bonnie says, “Working Lands for Wildlife is ready to go to the next level, and today’s incorporation of the Conservation Reserve Program into its vision is a major leap forward.” *********************************************************************************** CFTC Announces Second Voluntary Carbon Markets Convening July 19 The Commodity Futures Trading Commission announced the second voluntary carbon markets convening set for next month. The meeting will be held on Wednesday, July 19, at the CFTC's Washington, D.C. headquarters at 11:30 a.m. The purpose of the meeting is to discuss recent private sector initiatives for high-quality carbon credits, current trends and developments in the cash and derivatives markets for carbon credits, and public sector initiatives related to carbon markets. CFTC Chairman Rostin Behnam says, “The voluntary carbon markets are at a critical point in their development and growth, and the has an important policy responsibility to promote product innovation, price discovery, and liquidity for high-quality carbon credits.” As the voluntary carbon markets evolve, the goal of the meeting is to build upon the information discussed at the CFTC’s first convening and the information learned from public comments as submitted in response to the Commission’s June 2022 Request for Information on Climate-Related Financial Risk. *********************************************************************************** Animal Food Manufacturers Vital to US Economy New research from the American Feed Industry Association shows the industry drives economic growth across the national and local economies. The organization's economic contribution study estimates that in 2023, the total animal food industry, including indirect and induced effects, will generate $267.1 billion in sales. The industry will employ roughly 760,000 full- and part-time and contract employees, paying out $55 billion in salaries and employee benefits before year-end. At the local, state and national levels, the industry will file $18.5 billion in taxes in 2023. The 83-page report showed that the top five states for feed and pet food sales this year will be California, with an estimated $19.5 billion, Missouri at $18.6 billion, Texas at $17.1 billion, Iowa at $16.5 billion, and Kansas at $16.2 billion. The states with the most feed mills included Texas, Iowa, Minnesota, Wisconsin and Pennsylvania. Missouri employs the most animal food manufacturing employees with over 54,350, followed by California, Texas, Iowa and Pennsylvania. *********************************************************************************** Biden Administration Announces Allocations for High-Speed Internet Program The Department of Commerce’s National Telecommunications and Information Administration this week today announced allocated funding for reliable high-speed internet. States, D.C., and territories will use funding from the $42.45 billion Broadband Equity, Access, and Deployment program to administer grant programs within their borders. Secretary of Commerce Gina Raimondo says, “What this announcement means for people across the country is that if you don’t have access to quality, affordable high-speed Internet service now – you will.” The funding will be used to deploy or upgrade broadband networks to ensure that everyone has access to reliable, affordable, high-speed Internet service. Once deployment goals are met, any remaining funding can be used to pursue eligible access-, adoption-, and equity-related uses. States, Washington D.C., and territories will receive their formal notice of allocation on June 30, 2023. To view state-by-state funding across the Biden Administration's high-speed Internet portfolio, visit InternetforAll.gov.
| Rural Advocate News | Wednesday June 28, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report is set for 9:30 a.m. CDT, including ethanol production. Traders continue to keep a close watch on weather and the latest forecasts ahead of Friday's Acreage and Grain Stocks reports from USDA. Weather A few weak disturbances will be moving through the Corn Belt on Wednesday with areas of scattered showers and thunderstorms. Some severe weather will be possible, mostly centered on Wisconsin, though we may see that threat expand elsewhere in the region. Heat that had been over Texas early this week will expand up into Kansas and the Ozarks Wednesday and farther north and east the rest of the week with triple-digit readings for a few days.
| Rural Advocate News | Tuesday June 27, 2023 |
Biden Administration Set to Issue New WOTUS Rule by Sept. 1, Asks for Court Stay LINCOLN, Neb. (DTN) -- EPA plans to complete a proposed rewrite of the 2023 waters of the U.S. rule on or before Sept. 1, 2023, after a Supreme Court ruling in May essentially struck down the Biden administration rule. The agency filed a motion to stay an ongoing WOTUS lawsuit in federal court on Monday, telling the U.S. District Court for the District of North Dakota that a rewrite is on the way. "Federal Defendants respectfully request that the court stay this case," EPA said in its motion. "Good cause exists for this request. Federal defendants are developing a new rule to amend the 2023 rule consistent with Sackett." The agency said in its motion it would be best to preserve resources and conserve "judicial economy" by staying the case. The federal court in North Dakota had issued a 24-state preliminary injunction against the Biden rule. "Federal defendants' new rule may resolve, or at least narrow, the issues in this case," the agency said in the motion. "A stay will allow the parties time to assess the new rule and determine whether to continue to litigate this case. A stay will also serve the interest of judicial economy because it may result in avoiding unnecessary litigation and/or narrowing the issues." The injunction is in effect in Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming. In addition, an injunction is in place in Texas and Idaho as a result of a lawsuit filed in Texas. In Sackett v EPA, the Supreme Court ruled that a tract of land owned by Michael and Chantell Sackett in Idaho was not a WOTUS. In addition, the court struck down the agency's use of the so-called "significant-nexus" standard to make Clean Water Act determinations. EPA and the U.S. Army Corps of Engineers have used significant nexus for years. The standard essentially allows regulators to claim jurisdiction over even dryland features, if there is scientific evidence of a chemical and biological connection to an actual navigable water such as lakes, streams and rivers. The Sacketts have filed many appeals on the EPA decision in the past 15 years. The U.S. Court of Appeals for the Ninth Circuit had sided with EPA's wetland assessment on the Sacketts' property. The court's ruling sends the appeals court decision back to the court for reconsideration. Justice Samuel Alito said in writing the majority opinion that EPA's interpretation of the law "gives rise to serious vagueness concerns in light of the CWA's criminal penalties." "Due process requires Congress to define penal statutes 'with sufficient definiteness that ordinary people can understand what conduct is prohibited,'" Alito wrote, "and 'in a manner that does not encourage arbitrary and discriminatory enforcement.' Yet the meaning of 'waters of the United States' under the EPA's interpretation remains hopelessly indeterminate. "The EPA contends that the only thing preventing it from interpreting 'waters of the United States' to 'conceivably cover literally every body of water in the country' is the significant-nexus test." Alito's ruling noted in defining "waters of the U.S.," the court revisits what has been "a contentious and difficult task." Alito said the phrase "waters of the U.S." has sparked decades of EPA action and litigation. The boundary between "significant" and insignificant is far from clear, Alito wrote. EPA argued that "waters" also include wetlands. But Alito points to the presence of puddles and noted in an earlier decision that ponds are not considered part of waters of the U.S.
| Rural Advocate News | Tuesday June 27, 2023 |
Plan Would Increase Access to Crop and Livestock Insurance Representatives Randy Feenstra (R-IA) and Angie Craig (D-MN) introduced the Crop Insurance for Future Farmers Act. It would equip new producers, beginning farmers, and U.S. veterans with the crop insurance protections they need to be productive, profitable, and successful. The legislation would align the definition of “Beginning Farmer” to match most other beginning-farmer programs, extending crop and livestock insurance protections to ten years for new and beginning farmers. This increase to ten years would apply to all federal crop insurance programs, including livestock policies. “We have to do a better job of helping new farmers build successful operations,” Craig says. “We’re working to strengthen the farm safety net and ensure we’re preparing the next generation of family farmers.” Recent estimates say 34 percent of all U.S. producers are over 65 years old, while only eight percent were under 35. Forty percent of all farmlands will transfer ownership over the next 20 years. *********************************************************************************** USDA Investing $500 Million to Expand Domestic Biofuels The USDA is planning to invest up to $500 million to increase the availability of domestic biofuels and give Americans additional cleaner-fuel options at the pump. “By expanding the availability of homegrown biofuels, we’re strengthening our energy independence, creating new market opportunities and revenue streams for American producers, and bringing good-paying jobs and other economic benefits to rural and farm communities.” The first group of applicants for funding through the Higher Blends Infrastructure Incentive Program will receive $25 million for 59 infrastructure projects. In July, the USDA will start accepting applications for another $450 million in grants through the HBIIP. These grants will support the infrastructure needed to lower out-of-pocket costs for transportation, fueling, and distribution facilities to install and upgrade biofuel-related infrastructure like pumps, dispensers, and storage tanks. Grants cover up to 75 percent or $5 million of total project costs to help facilities convert to higher-blend fuels. *********************************************************************************** BLM Extends Public Comment Period on Conservation Rule The Bureau of Land Management extended the public comment period on its new land use rule through July fifth. The bureau wants more feedback on its proposal to elevate conservation on federal lands. The announcement is getting significant pushback from the Public Lands Council, conservatives, energy companies, and ranchers in the Mountain West. Under the proposal, conservation would get equal footing to other land uses like oil and gas drilling, mining, grazing, and timber harvesting. Environmental groups would be allowed to lease federally owned parcels for preservation and habitat restoration. Opponents say changes to the rules for 246 million acres of land would undermine the industries that rely on those lands. Wyoming Governor Mark Gordon says, “Simply put, if it ain’t broke, don’t fix it. It pits productive uses of public lands against conservation – a gross mischaracterization of the concept.” The House and Senate already have bills to halt the rule. *********************************************************************************** Lawmaker Reintroducing Bill to Get EV Industry into Biofuel Program A Democratic lawmaker announced plans to reintroduce a bipartisan bill that would get electric vehicles into the national biofuel blending program. The legislation would allow electricity generated from renewable biomass to qualify for credits under the Renewable Fuel Standard. The White House recently stopped plans to do so for fear of lawsuits. Under the bill, companies that produce power generated from renewable gas used for charging EVs would be eligible to generate lucrative credits under the RFS. That’s a slight but important difference from the Environmental Protection Agency’s approach, which would have allowed EV manufacturers like Tesla to generate the credits. “The manufacturers don’t produce the electricity,” says California Representative John Garamendi, the bill’s sponsor. “We know that the biomass/biogas industry can produce electricity in a way that benefits the overall economy and ecology of the nation.” The bill directs the EPA, which oversees the RFS, to implement the plan. *********************************************************************************** USDA Approves Lab-Grown Chicken The USDA gave two startup companies the go-ahead to sell lab-grown chicken. GOOD Meat, a subsidiary of food tech company Eat Just, Inc., and UPSIDE Foods will be allowed to sell their products that have been cultivated from real animal cells. Investopedia says chicken from GOOD Meat and UPSIDE has been declared safe to eat by the USDA. The announcement followed a “no questions” letter from the Food and Drug Administration earlier this year. Cultured meat, also called cell-based or lab-grown, uses stem cells from animal fat or muscle tissue to feed cells, allowing them to grow. It’s then grown to the proper density in bioreactors before getting separated by a centrifuge. “This news was a major moment for our company, the industry, and the food system,” says Josh Tetrick, CEO of GOOD Meat and Eat Just. Analysts predict the cell-cultured meat industry will eventually be worth approximately $25 billion. *********************************************************************************** Lawmaker’s Working Group to Address Farm Labor Shortage Members of the House Agriculture Committee have formed a bipartisan Agricultural Labor Working Group to tackle the ag industry’s continual labor shortage and address other workforce issues. The group is chaired by Representatives Rick Crawford (R-AR) and Don Davis (D-NC). It will look at solutions to the agriculture industry’s labor needs, including reforming the existing H-2A visa program. Those visas currently allow agricultural employers who meet specific requirements to bring a limited number of foreign nationals to the U.S. to fill temporary, seasonal farm jobs. However, in recent years the number has been insufficient to meet the workforce needs of livestock farmers that need year-round employees. The National Pork Producers Council supports expanding the H-2A visa program to year-round agricultural laborers. It also backs reforming the visa system to help with complexity, backlogs, predictability, and costs. The committee will issue an interim report detailing both the challenges and potential solutions.
| Rural Advocate News | Tuesday June 27, 2023 |
Tuesday Watch List Markets A report on U.S. durable goods orders in May will be out at 7:30 a.m. CDT Tuesday, followed by May U.S. new home sales and a report on U.S. consumer confidence in June at 9 a.m. Traders remain keen on the latest weather forecasts and USDA has not had a daily export sales announcement since June 9. Weather Another couple of disturbances will be moving through the Plains on Tuesday, over the top of a strong heat ridge in Texas. Thunderstorms could be very strong in a few areas, especially along the Kansas-Oklahoma border, where conditions are more favorable for very strong winds out of a convective system that may invoke the term derecho if it comes together.
| Rural Advocate News | Monday June 26, 2023 |
U.S. and India Announce Resolution on Key Trade Issues U.S. Trade Representative Katherine Tai announced that the United States and India have agreed to terminate six outstanding disputes at the World Trade Organization. India also agreed to remove retaliatory tariffs that it imposed in response to the U.S. Section 232 tariffs on steel and aluminum. The Indian tariffs included American products like chickpeas, lentils, almonds, walnuts, and apples. These tariff cuts will restore and expand market opportunities for U.S. agricultural producers and manufacturers. “This agreement represents the culmination of intensified bilateral engagement over the last two years to deepen our economic and trade ties,” Tai says. “The result is U.S. producers and manufacturers will now enjoy renewed access to a critical global market, and we will strengthen our trade relationship with one of our closest partners.” As India’s Prime Minister makes an official state visit to the U.S., Tai says the agreement opens a new chapter of bilateral cooperation. *********************************************************************************** Ag Reacts to the Dispute Settlement Between the U.S. and India Farmers for Free Trade issued a statement responding to the resolution of a number of trade disputes between India and the U.S. FFT Executive Director Brian Kuehl (KEEL) says India has always represented an enormous market for America’s ag exports. “While there has long been frustration over unnecessary barriers to entry into the Indian market, this announcement is a positive step forward in removing tariffs and opening trade,” he says. “The fact that India placed tariffs on U.S. products in the first place is a reminder of the damage trade wars caused here at home.” Ag Secretary Tom Vilsack says the removal of the tariffs is a major win for America’s farmers. “Producers will now be able to increase sales of apples, chickpeas, lentils, almonds, and walnuts to one of America’s top trading partners,” Vilsack says. “USDA applauds the Office of the USTR for their diligence in reaching this welcome agreement.” *********************************************************************************** USDA Supporting American Producers, School Meals, and Emergency Operations Ag Secretary Tom Vilsack says USDA is providing $2.7 billion to support American farmers, students participating in school meal programs, and emergency food operations. Almost $1.3 billion goes to states to purchase foods to be distributed to schools for their meal programs, and almost $1 billion for states to order commodities from USDA vendors for emergency food providers. Those emergency providers include food banks and community kitchens that face high demand and supply chain disruptions. USDA is also making up to $400 million in grants available to help support domestic fertilizer production capacity and lower costs for producers. “American agriculture has continued to be resilient in the face of significant and unpredictable challenges,” Vilsack says. “Today’s comprehensive set of investments will help producers by increasing commodity purchases for schools and emergency food providers and supporting expanded domestic fertilizer capacity to help lower costs. This better prepares us for the future.” *********************************************************************************** Senate Appropriations Approves Ag-FDA Funding Bill Senate appropriators unanimously approved a bill to fund the Agriculture Department and Food and Drug Administration through fiscal year 2024. That’s a level of consensus that stands in stark contrast to the deep partisan divides on display during the House’s markup of their agriculture and FDA spending bill last week. The Senate spending bill, which the panel approved 28-0 after just over an hour of discussion, would fund the agencies at $25.993 billion, more than $8 billion above the funding level in the Republican-led House bill. That House spending proposal drew intense pushback from Democrats on the Appropriations Committee over the course of a more than eight-hour markup on June 14. That session ended very abruptly after a particularly heated exchange between Representative Steny Hoyer (D-MD) and committee chair Kay Granger (R-Texas). New Mexico Democrat Martin Heinrich, chair of the subcommittee, lauded the bipartisan collaborative nature of the Senate’s spending bill. *********************************************************************************** American Agri-Women Release Vision for 2023 Farm Bill The American Agri-Women released their vision for what’s important in the 2023 Farm Bill. “Agriculture is on the front lines of challenges like dealing with climate, food security, national security, and world-class telecommunications to enable further developments in natural resource management,” says AAW President Heather Hampton-Knodle (Kuh-NO-dle). The group’s recent work builds on concepts the group published in 2022 that include fundamentals like well-funded, flexible crop insurance; revitalizing research infrastructure; access to markets and inputs and credit to help pay for exponential increases in inputs and equipment; and modernizing aging utilities for water and underserved telecommunications in rural areas. Their additions to the original vision include using export programs to secure global supply chains, increasing programs to support rural large-livestock veterinarians, and workforce development for the timber industry. “The farm bill is needed for food security and national security as well as playing roles in a positive trade balance,” says Hampton-Knodle. *********************************************************************************** Drought Intensifies in Several Parts of Rural America Despite mostly near- to below-normal temps in much of the Midwest, excluding the Upper Midwest and Western Corn Belt, much of the region didn’t see appreciable rainfall. As a result, short-term dryness continued to worsen, leading to widespread deterioration. The only improvements took place in the Eastern Corn Belt and Kentucky. Much of the Northern Plains had below-average rainfall during the week, adding to short-term precipitation deficits. Above-normal temps and high winds only made drought conditions worse by increasing moisture loss from soils and vegetation. Several rounds of heavy rainfall with thunderstorms traveled through the south from Oklahoma to Mississippi, leading to targeted improvements in abnormal dryness. Improvements took place in the Texas Panhandle because of well-above-average rainfall. However, the Lower Mississippi and Tennessee Valleys saw short-term dryness continue to increase. Another week of above-normal rainfall across many areas of the Intermountain West resulted in widespread but targeted improvements.
| Rural Advocate News | Monday June 26, 2023 |
Monday Watch List Markets Back from the weekend, traders will examine rainfall amounts and the latest forecasts. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Weather A cold front moving through the Mid-Atlantic and South will keep areas of showers and thunderstorms going for Monday, after bringing widespread rains to much of the Corn Belt over the weekend. The Great Lakes will see some showers as well as small parts of the Plains and Prairies. South of the front it will be very hot, with another round of triple digit heat for Texas and nearby areas.
| Rural Advocate News | Friday June 23, 2023 |
Lawmakers Introduce American Farmers Feed the World Act Lawmakers this week introduced the American Farmers Feed the World Act of 2023. The bipartisan bill would “keep food in America’s international food aid programs.” Specifically, the legislation aims to restore the original intent of the Food for Peace program without spending additional Farm Bill resources, all while safeguarding the interests of U.S. farmers. U.S. Wheat Associates joined the National Association of Wheat Growers and other agricultural organizations for the introduction of the bill Thursday. USW Director of Trade Policy Peter Laudeman says, “The reforms in the American Farmers Feed the World Act of 2023 will ensure that more food gets to more people in need throughout the world, without spending any additional resources.” Representative Tracy Mann, a Kansas Republican who joined colleagues to introduce the legislation, says, “This bill puts a stake in the ground: it’s a noble thing to feed hungry people, and we should use American commodities as we do it.” *********************************************************************************** Vilsack to Announce Biofuels Funding Monday Agriculture Secretary Tom Vilsack heads to the Twin Cities area in Minnesota Monday. The Department of Agriculture says Vilsack will announce significant new funding being awarded by USDA to bolster and expand the availability of homegrown biofuels nationwide. During the event, USDA says Vilsack will also underscore USDA's efforts to invest in climate-related research and development in states like Minnesota, which helps result in scientific breakthroughs such as innovative biofuel technologies that combat the climate crisis, lower costs for American producers and families, and boost American energy independence. In the briefing regarding the announcement, USDA did not announce an exact location for the event. The announcement is part of President Biden's Investing in America agenda to rebuild our economy from the bottom up and middle out by rebuilding our nation's infrastructure, creating good-paying jobs, and building a clean energy economy to tackle the climate crisis and make our communities more resilient. *********************************************************************************** California Delays Prop 12 Implementation California this week delayed the implementation of Proposition 12. Granting six months of additional relief for products in the supply chain allows grocery stores to remain stocked so Californians have uninterrupted access to pork products, especially with rising food prices, according to the National Pork Producers Council. In a statement, NPPC claims, “While this temporary solution does not solve the challenges and uncertainty California Proposition 12 brings to our industry, NPPC looks forward to working with Congress to find a permanent solution to this problem.” The U.S. Supreme Court ruled in favor of the law earlier this year, stating Congress, not the courts, has the authority to block the law. Proposition 12 requires veal calves, breeding pigs, and egg-laying hens to be housed in systems that comply with specific standards for freedom of movement, cage-free design, and specified minimum floor space. Implementation of Proposition 12 is now set for January 1, 2024. *********************************************************************************** USDA Announces $300 Million Investment for Underserved Producers The Department of Agriculture Thursday announced its selection of 50 projects for potential award, totaling approximately $300 million, for underserved producers funding. The projects will help improve access to land, capital, and markets for underserved farmers, ranchers, and forest landowners. The funding comes from the Increasing Land, Capital, and Market Access Program. Agriculture Secretary Tom Vilsack says, "By providing the resources, tools and technical support needed to directly help local farmers and ensure we have a strong agricultural system across the country." For one of the projects, the Community Development Corporation of Oregon will work to provide long-term and sustainable land access to disadvantaged refugee and immigrant beginning farmers in Oregon's east Multnomah and Clackamas counties. Another project by Maine Farmland Trust will work with low-income farmers on access to low-interest capital for land purchase or business operations, farm upgrades and infrastructure investments. See the full list of Increasing Land Access Program selected projects at www.fsa.usda.gov. *********************************************************************************** USDA: Access to Primary Care Varies Across the Country New data released this week from USDA’s Economic Research Service shows access to primary care physicians varies across the United States. The number of primary care physicians per 10,000 residents is generally higher in much of the Northeast, along the West Coast, in Hawaii, and parts of the mountainous West and upper Midwest. The availability of primary care physicians per capita is generally lower in much of the Great Plains—especially the Southern Great Plains—and the Lower Mississippi Delta and Southeast. However, there are substantial variations in the availability of physicians within these regions. For instance, in rural counties, there are fewer physicians per capita in counties adjacent to urban counties than in those farther from urban areas. USDA says this is likely because residents travel from nearby rural areas to urban doctors. The lowest rates of physicians per capita are in rural counties with an urban population of less than 2,500. *********************************************************************************** Pivot Bio Releases First Impact Report Pivot Bio, a sustainable agriculture company, released its inaugural impact report this week. The report documents how farmers are using their products to improve their productivity and profitability without synthetic fertilizer polluting local rivers or contributing to climate change. In 2022 alone, Pivot Bio helped its customers replace over 32,000 tons of synthetic nitrogen fertilizer, avoiding roughly 226,400 metric tons of CO2e - equivalent to powering 44,000 U.S. homes for a year. Pivot Bio CEO Karsten Temme says, "This data shows farmers are using biological nitrogen to reliably increase their productivity, profitability, and sustainability." The company's microbial nitrogen is manufactured with an emissions footprint that is just two percent that of synthetic fertilizer and uses 1,000 times less water. Pivot Bio's microbial nitrogen can replace approximately a quarter of a farmer's synthetic nitrogen. In 2022, it was used by farmers on over three million acres in the United States, and the company reported revenue of over $60 million.
| Rural Advocate News | Friday June 23, 2023 |
Friday Watch List Markets USDA's export sales report is due out at 7:30 a.m. CDT Friday, but expectations are low as the week only had one modest soybean sale announcement, reported to unknown destinations. At 2 p.m., USDA's June 1 cattle on-feed and monthly cold storage reports are set to be released. The latest weather forecasts remain the primary concern of grain traders. Weather A front that has been stuck in the Northern Plains all week continues to be active on Friday. Showers and thunderstorms have been rather sporadic this week but are expected to increase in intensity as a system in the West approaches Friday night. Additional severe storms are possible near the Texas Panhandle yet again today. An upper-level system continues to spin around the East Coast where showers will be possible across the far eastern Midwest. In between the two, another day of hot and dry conditions continue to stress crops.
| Rural Advocate News | Thursday June 22, 2023 |
EPA Sets Final Renewable Fuel Volumes for 2023-2025 The Environmental Protection Agency Wednesday released final volume requirements under the Renewable Fuel Standard for 2023, 2024 and 2025. EPA Administrator Michael Regan says, “Today’s final rule reflects our efforts to ensure stability of the program for years to come.” The announcement provides for annual growth in total renewable fuel volumes, although with lower conventional biofuel volumes than EPA had proposed. For 2023, EPA set an implied 15.25-billion-gallon requirement for conventional ethanol, which includes a supplemental 250 million gallons a prior court decision required EPA to restore to the RFS. For 2024 and 2025, EPA holds the implied conventional volume level at 15 billion gallons, despite proposing 15.25 billion gallons for those two years. National Corn Growers Association President Tom Haag says, “A multi-year RFS volume rule offers stability and certainty for renewable fuels. However, when it comes to addressing pressing energy, environmental and economic challenges, EPA’s final rule falls short of the emission reductions and cost-saving benefits the higher proposed ethanol volumes would have provided.” *********************************************************************************** Grassley Condemns Biden Biofuels Bait-And-Switch Senator Chuck Grassley Wednesday criticized the Environmental Protection Agency’s final rule setting minimum biofuels blending levels for the next three years below current production capabilities. The Iowa Republican says, “For an administration obsessed with reducing carbon emissions, this rule makes absolutely no sense.” While the plan makes modest increases to blend levels for certain biodiesel products, the overall biofuels volume remains unchanged, and ethanol volumes were reduced from proposed rule levels. The American Soybean Association also criticized the EPA announcement, as the rule does not accurately reflect the growth expected in the industry and falls far below the industry's current production. ASA President Daryl Cates of Illinois says the announcement fails "to account for the progress being made in biofuels investment and growth." Expanded crush capacity coming online in the next few years translates into about 700 million gallons of renewable diesel, far above EPA's three-year RVO growth of only about 590 million gallons. *********************************************************************************** Ernst, Stabenow, Introduce FARMLAND Act Senators Joni Ernst and Debbie Stabenow this week introduced The Foreign Agricultural Restrictions to Maintain Local Agriculture and National Defense, or FARMLAND Act. The legislation would overhaul the current system that has allowed China’s malign influence to threaten American food security and national security by buying up agricultural land in the United States. Ernst, an Iowa Republican, says, “America needs to know how our foreign adversary has been allowed to use loopholes to attempt to exploit any potential vulnerability and assert control over our agriculture industry.” Stabenow, a Michigan Democrat, adds, “This bill safeguards our nation’s farmland and food supply by overhauling the system for federal oversight of foreign land ownership.” Foreign ownership and investment in U.S. agricultural land has nearly doubled over the last decade, according to USDA. Among other things, the FARMLAND Act would develop a publicly available database of agricultural land owned by foreign persons, and prohibit them from participating in Farm Service Agency programs. *********************************************************************************** USDA Reminds Producers to File Crop Acreage Reports by July 17 Agricultural producers who have not yet completed their crop acreage reports after planting should make an appointment with their local USDA office before the applicable deadline, which for many places and crops is July 17. USDA’s Farm Service Agency also reminds producers with login access to farmers.gov of several features that can help expedite acreage reporting, such as the ability to view, print and label maps. FSA Administrator Zach Ducheneaux says, “Filing an accurate and timely crop acreage report is an important step in receiving USDA program benefits, including safety net, conservation, and disaster assistance support.” July 17 is a major deadline for most crops, but acreage reporting deadlines vary by county and by crop. Producers should also report crop acreage they intended to plant but were unable to plant because of a natural disaster. Producers can contact their FSA county office for acreage reporting deadlines that are specific to their county. *********************************************************************************** 2022 USDA Nutrition Assistance Spending Declines Federal spending on USDA’s food and nutrition assistance programs totaled $183.0 billion in fiscal year 2022, down six percent from the record-high spending of $194.7 billion in 2021, adjusted for inflation to 2022 dollars. Before adjusting for inflation, total 2021 spending was $183.3 billion. In 2022, the Supplemental Nutrition Assistance Program maximum allotment permanently increased after the Thrifty Food Plan was re-evaluated, and several States also ended SNAP emergency allotments, which temporarily raised all recipients’ benefits to at least the maximum for their household size. SNAP spending totaled $119.5 billion in FY 2022, one percent less than the inflation-adjusted record-high spending in 2021. Spending on the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC, totaled $5.7 billion—an increase of seven percent from inflation-adjusted spending in 2021, reflecting an increase in program food costs per participant. Combined spending on child nutrition programs totaled $35.1 billion in FY 2022, increasing 19 percent from the inflation-adjusted total in the previous year. *********************************************************************************** USDA Promoting Summer Food Safety Whether you’re a grill master or a first-time barbecue cook, food safety should always be part of your routine to ensure a healthy and happy Fourth of July. USDA is promoting summer food safety tips as consumer behavior studies have shown that individuals don’t always properly wash their hands or use a food thermometer. Ensure your food is safe to eat this Fourth of July by following a series of food safety steps. Start with cleaning the grill and other items before the touch food, avoid cross contamination of raw meats and vegetables, and use food thermometers to ensure your grilled food is ready. Although frozen products may appear to be pre-cooked or browned, treat them as raw food and cook thoroughly. The final tip is to chill food properly. Perishable food should be consumed or refrigerated within two hours, one hour if outdoor temperatures are 90 F and above.
| Rural Advocate News | Thursday June 22, 2023 |
Thursday Watch List Markets Thursday morning activities start with weekly U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m., but no export sales report until Friday. U.S. existing home sales and leading indicators for May follow at 9 a.m. U.S. Energy Department's report of natural gas storage is set for 9:30 a.m., followed by weekly energy inventories at 10 a.m. Federal Chairman Jerome Powell goes before the Senate, likely repeating Tuesday's testimony to the House. Weather A persistent weather pattern this week continues on Thursday with a front stuck up in the Northern Plains that should remain active and a system in the Southeast that continues to spin. Thunderstorms are expected to develop in the High Plains yet again Thursday, which may be severe. Elsewhere in the Corn Belt it will be hot and dry, with stresses continuing to mount as the region looks forward to weekend rainfall.
| Rural Advocate News | Wednesday June 21, 2023 |
Poll Shows Voters Think Rural Health Care Lags Behind Urban Areas A new survey from One Country Project shows that voters think health care in rural communities is markedly worse than in the rest of America. Those findings were revealed soon after the OCP hosted its annual Rural Progress Summit. Stakeholders from across the U.S. gathered to discuss challenges facing rural communities and the importance of elevating rural priorities on the national stage. “Access to quality, affordable health care shouldn’t be determined by your zip code,” says OCP Founder and former Senator Heidi Heitkamp. More than 130 rural hospitals have closed since 2010. That leaves rural residents with no option but to travel hours to the nearest medical center, which is especially dangerous in a life-threatening emergency. Air ambulances are often relied on, and the survey shows overwhelming support, at 84 percent, for increasing the Medicare reimbursement rate for air medical services. Medicare currently covers just 50 percent of the associated costs. *********************************************************************************** Rural Mainstreet Index Reaches Highest Level Since 2022 After dropping below growth neutral in March, the June Rural Mainstreet Index expanded above the threshold for a third-straight month to its highest point since May 2022. That’s according to the June monthly survey of bank CEOs in rural areas of a ten-state region dependent on agriculture. The overall June reading is 56.9, the highest since 2022 and up from May’s 55.8. The index range is zero to 100, with 50 representing growth neutral. “After negative growth during the first quarter of 2023, the Rural Mainstreet economy experienced positive but slow economic growth for the second quarter,” says Ernie Goss of Creighton University. The region’s farmland price index jumped from 56.3 in May to 59.3 in June. Bank CEOs ranked Federal Reserve rate hikes as the greatest challenge ahead during the next 12 months. Bankers also continue to have a positive outlook for payment of farm loans in the next year. *********************************************************************************** Five Benefits of Modern Dairy Practices Dairy is an important part of the diets of millions of Americans. The average person consumes about 276 pounds of dairy in a year. However, despite its positive impact, a significant portion of the population often misunderstands dairy. The Association of Equipment Manufacturers’ Dairy Leadership Group put together the top five benefits of modern dairy. The first is the U.S. dairy industry produces more milk than in 1944 with 16 million fewer cows. The dairy industry accounts for 3.5 percent of total U.S. GDP. By way of comparison, the entire auto industry accounts for three percent. Dairy is also more environmentally friendly, having reduced its GHG footprint by 17 percent and water usage by 10 percent in the last 15 years. Ninety-seven percent of the 34,000 dairy farms are family-owned and operated. Dairy is also an excellent source of 18 of the 22 essential nutrients needed for a healthy life. *********************************************************************************** American Farmland Trust Applauds No EMIT’s Act Representatives from Wisconsin and California introduced the “Naturally Offsetting Emissions by Managing and Implementing Tillage Strategies” or “NO EMIT’s Act.” The bill would help support farmers in improving soil health. American Farmland Trust applauded the bipartisan bill’s introduction and its inclusion of one of AFT’s top farm bill priorities: establishing a federal match for state and Tribal soil health programs. “In recent years, states have begun creating innovative soil health programs that fill current gaps in support and help producers voluntarily adopt soil health practices in locally tailored ways,” says Tim Fink, AFT Policy Director. “State programs can struggle to keep pace with producer demand, so creating a federal program to match state and Tribal funding would help leverage existing soil health programs and incentivizes others to create programs of their own.” Creating that federal matching program has broad support from AFT, six state agencies, and stakeholders from 29 states. *********************************************************************************** USDA Accepting Applications for Chile Agribusiness Trade Mission The USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for a trade mission to Santiago, Chile, September 25-29. American agribusinesses will participate in business-to-business meetings with potential importers from both Chile and Peru. The trade mission coincides with Peru’s USDA-endorsed food trade show that offers additional networking opportunities for participants. “This year, we are celebrating the 200th anniversary of U.S.-Chile diplomatic relations,” says FAS Administrator Daniel Whitley. “Chile and the neighboring Peru are some of our key trading partners, representing the second and third-largest markets in South America.” Total agricultural exports to these markets have grown significantly since establishing the Chile Free Trade Agreement and the Peru Trade Promotions Agreement. Exports to this region exceeded $2 billion in 2022. During January-April 2023, U.S. ag exports to Chile have increased by four percent from the same period last year. The region features relatively high per capita incomes and purchasing power. *********************************************************************************** PLC Leads Grassroots Campaign Against BLM Land Rule The Public Lands Council launched a grassroots campaign regarding the Bureau of Land Management’s Proposed rule titled “Conservation and Landscape Health.” The proposed rule creates significant concerns about changes to the BLM’s authority to manage the nation’s public lands and opens the door to removing livestock grazing from the range. “The BLM must follow the law in managing our nation’s public lands for multiple uses and sustained benefits for all,” says PLC Executive Director Kaitlynn Glover. “Public lands grazing is an important conservation tool that protects these landscapes and is integral to national food security.” PLC also wants to remind the bureau that grazing is an essential use of America’s public lands, and they hope all stakeholders will join the agency in sending a letter to the BLM’s leadership underscoring the responsibility to be good partners, especially since they’ve “fallen short,” according to Glover. The agency stops accepting comments on July 5.
| Rural Advocate News | Wednesday June 21, 2023 |
Wednesday Watch List Markets Traders will be paying attention as Federal Reserve Chairman Jerome Powell speaks to Congress Wednesday and to the Senate Thursday, interested in any comments about the future of interest rates. The Environmental Protection Agency is expected to release renewable volume obligations sometime Wednesday, as rumored numbers began circulating Tuesday. Traders will stay close to the latest weather forecasts and consider Tuesday afternoon's lower crop ratings for corn, soybeans and spring wheat. Weather A system continues to spin in the Southeast on Wednesday, which will continue to produce scattered showers and thunderstorms. A front in the Plains will be active as well. Between the two, hot and dry conditions will pressure remaining soil moisture.
| Rural Advocate News | Tuesday June 20, 2023 |
Tuesday Watch List Markets Back from the three-day weekend, traders will be paying close attention to weather data and the latest forecasts, the main focus of June's grain markets. A report on May U.S. housing starts is set for 7:30 a.m. CDT, followed by USDA's weekly report of export inspections at 10 a.m. The Crop Progress report will have the latest crop condition ratings at 3 p.m. Weather A pair of ridges are trying to connect up early this week, causing heat to build from Texas into parts of the Midwest. The ridges have stalled a front across the Northern Plains and eastern Canadian Prairies, where showers will come in waves the next few days. A system stuck in the Southeast will see showers continue there as well.
| Rural Advocate News | Monday June 19, 2023 |
USDA Investing $320 Million to Strengthen Supply Chains The USDA is investing $320 million to create new and better markets for agricultural producers and food businesses in 19 states across rural America. “Our goal is to expand processing capacity, create fairer markets and more revenue streams and market opportunities to help bring down food costs for families at the grocery store,” says Ag Secretary Tom Vilsack. “We’re partnering with entrepreneurs in rural areas to build brighter futures, connect business owners to new markets, and create good jobs for generations to come.” USDA is investing the funds to strengthen food supply chains and create more opportunities for producers and entrepreneurs in 19 states, including Alabama, Connecticut, Iowa, Minnesota, and others. For example, family-owned businesses like a meat market and a bison processing facility will be able to expand their production capabilities, maintain the highest quality control possible, and save jobs. For more information on opportunities through USDA Rural Development, go to rd.usda.gov. *********************************************************************************** National Drought Summary Showing a Mixed Outlook The Weekly Drought Monitor showed above-normal precipitation and below-normal temperatures resulting in another week of some improvements in the western U.S. The exception is the Pacific Northwest, where drought conditions continue to worsen along the northern Cascade Mountains. The monitor shows a mix of improving and worsening conditions in the Great Plains. Improvements are confined mainly in the western Great Plains. The Corn Belt is seeing widespread degradation of moderate drought and abnormal dryness. High evaporation rates have resulted in significant loss of soil moisture. Any rainfall over the past week in the Southeast U.S. fell in areas that didn’t need it. Virginia is showing moderate drought and abnormal dryness is showing in other locations through the southeast. The Southern U.S. has more mixed totals. Locations in Louisiana, Mississippi, and Tennessee experienced increasing dryness. In western parts of the Southern Plains, pockets of heavy rainfall continued adding to 60-day precipitation surpluses. *********************************************************************************** Young Cattlemen’s Conference Graduates 71 Leaders The National Cattlemen’s Beef Association Young Cattlemen’s Conference program concluded its successful relaunch after a three-year hiatus. This year’s class included 71 leaders from across the country and every sector of the beef industry. After nine days of intensive training, including a five-city tour showcasing every facet of the beef industry, members completed the trip with a full day of representation in Washington, D.C. The event is designed to expose participants to the full supply chain. Completing the YCC prepares participants to serve as leaders within their state associations in addition to being advocates for the NCBA and the beef community. “During the YCC, each member of the class has had the opportunity to better understand the cattle and beef industries and the complex relationships that represent the industry today,” says 2023 YCC Chair Jake Feddes of Montana. “Each member has also made connections that will benefit them in the future.” *********************************************************************************** County Committee Nominations are Now Open The USDA is accepting nominations for county committee members. Local elections will occur later this year. County committee members make important decisions on how federal farm programs are administered locally. All nomination forms for the 2023 election must be postmarked or received by the local Farm Service Agency by August 1. “Producers serving on FSA county committees play a critical role in the day-to-day operations of the agency, serving as the eyes and ears of the producers who elected them,” says FSA Administrator Zach Ducheneaux. Elections for members will take place in certain Local Administrative Areas (LAA). Ag producers who participate or cooperate in a USDA program or reside in the LAA that’s up for election this year may be nominated for candidacy. Nationwide, more than 7,700 dedicated members of the agricultural community serve on FSA county committees, which are made up of three to 11 members serving three-year terms. *********************************************************************************** Legislation Supports Advancements in Ag Research and Innovation Several senators introduced legislation to invest in public research, develop regionally adapted seed varieties and animal breeds, and enable the U.S. to maintain a robust food and ag system. The Seeds and Breeds for the Future Act promotes the development of ready-to-use, regionally adapted, and publicly available seed varieties and animal breeds. This would give farmers more tools to confront drought and varying growing conditions, and to have plant and animal varieties that are better suited to their area. Regionally developed seed varieties often result in substantial increases in hardiness and yields. It will also ensure America’s farmers have access to domestically produced seeds and breeds that are developed through publicly available research. “We must make sure our farmers and producers have the tools they need to adapt and compete on a global stage,” says bill co-sponsor Tammy Baldwin of Wisconsin. “This will make sure our research keeps up with farmer innovation.” *********************************************************************************** Lamb Board Building Local Relationships The continuing trend toward local food sourcing has put hometown butchers and specialty meat shops on the radar of likely lamb consumers. In June, the American Lamb Board connected with 50 of these U.S. businesses through its new “Butcher Box” direct mail kit. The goal is to reengage with this audience for long-lasting relationships that lead to increased sales of domestic lamb. ALB research found that 24 percent of consumers made retail lamb purchases at independent markets and-or butcher shops. Of those consumers, 30 percent were heavy lamb users, and 35 percent were light lamb users. Some of the selected shops already carry lamb, while some don’t routinely offer it. The initial 50 butchers have a chance to get selected as one of 25 “American Lambassadors” to advocate for American lamb. For information on the new list of the 25 American Lambassadors and places to buy lamb, go to americanlamb.com.
| Rural Advocate News | Friday June 16, 2023 |
Tentative Labor Agreement at West Coast Ports On Wednesday night, the Pacific Maritime Association and the International Longshore and Warehouse Union announced a tentative agreement on a new six-year contract. The agreement covers all of the West Coast ports and must still be ratified by both sides. “We are pleased to have reached an agreement that recognizes the heroic efforts and personal sacrifices of the ILWU workforce in keeping our ports operating,” says MPA President James McKenna and ILWU President Willie Adams in a joint statement. “We’re also pleased to turn our full attention back to the operation of the West Coast Ports.” U.S. Meat Export Federation President and CEO Dan Halstrom says this is tremendous news for U.S. red meat exporters and their overseas customers. “This agreement will restore stability and confidence in the performance of the West Coast ports and is essential for our industry,” Halstrom says. “We thank both sides for their hard work.” *********************************************************************************** Senate Bill Will Address Prop 12 Kansas Senator Roger Marshall will introduce a bill designed to address California’s Prop 12, which was recently upheld by the Supreme Court. The Hagstrom Report says Marshall’s bill would stop states from enacting laws that affect agricultural production in other states. The Ending Agricultural Trade Suppression (EATS) Act will preserve the right of states and local governments to regulate agriculture within their jurisdictions free from the interference of other jurisdictions. “U.S. agriculture currently lacks access to new markets because of non-tariff trade barriers overseas,” Marshall says. “The last thing we need is a big state like California imposing its will on ag-heavy states with regulations that will restrict our ability to trade among the states.” Bill co-sponsor John Cornyn of Texas says California shouldn’t be able to tell ranchers in his state how to do their jobs. Iowa Representative Ashley Hinson plans to introduce a companion measure at a later date. *********************************************************************************** Farm Bureau Continues Advancing Farmers’ Right to Repair The American Farm Bureau Federation signed a memorandum of understanding with CLAAS (CLAHS) of America regarding the right to repair. This brings the number of signed MOUs with ag manufacturers to five. Combined, the agreements cover about three-quarters of the agricultural machinery sold every year in the United States. “The MOU with CLAAS demonstrates our continued commitment to ensuring farmers have access to the tools they need to keep their farms running and America’s families fed,” says AFBF President Zippy Duvall. “Farmers and ranchers are more dependent on technology than ever, and they asked us to find a private-sector solution on the right to repair.” Eric Raby, senior VP for the Americas with CLAAS says, “We’re providing the promised solutions for our customers’ businesses, as their success and ours go hand in hand.” The agreement means farmers and independent repair shops can now access everything needed to self-repair their machines. *********************************************************************************** USDA Updates ERP Phase Two The USDA is updating the Emergency Relief Program (ERP) Phase Two. The goal is to provide a method for valuing losses and accessing program benefits to eligible producers of certain crops. Those crops can include grapes grown and used by the same producer for wine production or forage that’s grown, stored, and fed to livestock, that don’t generate revenue directly from the sale of the crop. These updates ensure that ERP benefits better reflect these producers’ actual crop losses resulting from 2020 and 2021 natural disaster events. The Farm Service Agency will begin accepting Phase Two applications from eligible wine grape and forage producers once the technical correction to ERP is published in the Federal Register, which should happen by this Friday (today), June 16. The deadline to submit applications for ERP Phase Two is July 14. FSA Administrator Zach Ducheneaux says these updates address the unique needs of different producers. *********************************************************************************** NCGA Elects New Leadership The National Corn Growers Association’s Board of Directors elected Ken Hartman, Jr., as the organization’s next first vice president for the new fiscal year starting on October 1. He’s a fifth-generation farmer operating a grain farm with his wife, Anita, daughter, Amanda, and mother, Joan, in Illinois. “I’m honored to continue serving America’s corn farmers with NCGA,” says Hartman. “I look forward to working with my fellow officers as we tackle issues that are critically important to corn growers and rural America.” Hartman currently chairs the NCGA Finance Committee. Hartman was honored by Prairie Farmer magazine with a Master Farmer Award in 2021 for his exceptional ag production skills and commitment to family and service. On October 1, Tom Haag (HAYG) of Minnesota becomes chairman, and the current first vice president, Harold Wolle (WO-lee) of Minnesota, becomes NCGA president. In October 2024, Wolle becomes chairman, and Hartman becomes the organization’s President. *********************************************************************************** Public Lands Council, Western Governors Lead BLM Rule Opposition A proposed rule allowing the Bureau of Land Management to offer conservation-only leases was written without consulting people like farmers and ranchers who depend on the land. In a letter to BLM director Tracy Stone-Manning, about 60 livestock groups say cattle and sheep producers have partnered with BLM in managing 245 million acres of federal land in the West for generations. However, BLM didn’t engage them in developing the proposed rule and gave no warning ahead of time that it was developing a rule. “Individually, each of the components of the proposal would have required detailed discussion,” the letter says. “Together, the components demand BLM do the necessary work of engaging stakeholders to avoid conflict and develop lasting outcomes.” BLM’s five public information sessions have done little to compensate for the agency’s lack of advanced discussions. Instead of engaging stakeholders where they operate, BLM is holding briefings in urban areas.
| Rural Advocate News | Friday June 16, 2023 |
Friday Watch List Markets Other than the University of Michigan's report on U.S. consumer sentiment, due out at 9 a.m. CDT, there are no significant reports Friday. Traders will be closely watching the latest weather forecasts. Markets will close at their normal times Friday, ahead of the Juneteenth market holiday on Monday and resume trading at 7 p.m. CDT Monday evening. Weather A system that has moved into the Plains will continue to slowly progress eastward on Friday. Areas of showers and thunderstorms continue to be possible there as well as across the Gulf Coast. Some severe weather cannot be ruled out but should not be as widespread as the last few days.
| Rural Advocate News | Thursday June 15, 2023 |
USDA Launches Effort to Strengthen Substantiation of Animal-Raising Claims The Department of Agriculture Wednesday began implementing a multi-step effort to strengthen the substantiation of animal-raising claims. The agency says the effort builds on the work of USDA to protect consumers from false and misleading labels. Agriculture Secretary Tom Vilsack adds, "USDA is taking action today to ensure the integrity of animal-raising claims and level the playing field for producers who are truthfully using these claims." Animal-raising claims, such as "grass-fed" and "free-range," are voluntary marketing claims that highlight certain aspects of how the source animals for meat and poultry products are raised. These claims must be approved by USDA's Food Safety and Inspection Service before they can be included on the labels of meat and poultry products sold to consumers. FSIS will conduct a sampling project to assess antibiotic residues in cattle destined for the "raised without antibiotics" market. FSIS will also issue a revised industry guideline to recommend that companies strengthen the documentation they submit to the agency to substantiate animal-raising claims. *********************************************************************************** Biden Administration Outlines Strategic Priorities for Wildfires The Biden administration Wednesday announced guidance to federal agency leaders with wildfire responsibilities outlining their vision and goals for managing wildland fires this year. The guidance comes from a joint memo issued by Agriculture Secretary Tom Vilsack and Secretary of the Interior Deb Haaland. The memo highlights other strategic priorities to reduce wildfire risk, restore ecosystems, engage in post-fire recovery, and make communities more resilient to fire. The memo also references the National Cohesive Wildland Fire Management Strategy as a guide to working with partners to restore and maintain landscapes and help communities become fire adapted. Vilsack says, “We need to better support our firefighters and that’s why President Biden has proposed long-term reforms that will provide permanent pay increases, better housing, better mental and physical health resources, and better work-life balance.” USDA and the Interior Department aim to have more than 17,000 wildland firefighters on board by the end of this year to help support communities increasingly impacted by wildfires. *********************************************************************************** Midwest Lawmakers Aim to Expand Biofuel Production Opportunities Midwest lawmakers this week introduced the Sustainable Aviation Fuels Accuracy Act of 2023. The bipartisan legislation would update federal standards to align with the definition of sustainable aviation fuel at the Federal Aviation Administration. The bill would also require agencies to adopt the Greenhouse gases, Regulated Emissions, and Energy use in Technologies, or GREET Model, the most accurate tool for measuring lifecycle emissions. Iowa Republican Senators Chuck Grassley and Joni Ernst introduced the bill along with Deb Fischer from Nebraska, and Democrat Tammy Duckworth of Illinois. Grassley says, “Our bill fixes the problem by requiring the FAA reference the most accurate GREET model for emissions assessments, consistent with many other federal agencies.” The GREET Model was commissioned by the Department of Energy’s Argonne National Laboratory. It considers crops, land uses and carbon reduction practices and is the best available model that recognizes the agriculture industry’s contributions to advancing domestic energy goals. *********************************************************************************** Legislation Would Bring Whole Milk Access to All Schools Senator Roger Marshall this week introduced legislation that amends the Richard Russell National School Lunch Act to allow schools participating in the program to serve whole milk. The Dietary Guidelines for Americans reports that nearly 90 percent of Americans do not meet their daily dairy intake recommendations. The Kansas Republican says, "I truly believe food is medicine, and by increasing kids' access to milk, we will help prevent health complications down the road and encourage nutrient-rich diets for years to come." In 2010, Congress passed the Healthy, Hunger-Free Kids Act which amended nutrition standards in the School Lunch Program. Among the changes, the law mandated that flavored milk must be fat-free within the program. In May of 2017, USDA announced a rule that allowed schools to receive waivers for low-fat flavored milk, rather than only fat-free. Leading nutritionists have found that whole dairy fats have no negative effect on a diet, and may even reduce risk of heart disease. *********************************************************************************** CRP Reaches 22 Million Acres in 2022 USDA’s Economic Research Service reports that in 2022, Conservation Reserve Program acreage rose to 22 million acres. USDA's Conservation Reserve Program was established by Congress in 1985. By 1986, the program began to use contracts to retire highly erodible cropland from crop production for 10–15 years. Enrollment grew quickly, reaching 33 million acres in 1990. After the initial contracts were awarded, program goals expanded to include water quality and wildlife habitat improvements in addition to soil erosion reduction. Between 1990 and 2008, CRP enrollment fluctuated around 33 million acres before falling to a 30-year low in 2021. Annual enrollment caps for eligible land are set at each iteration of the Farm Bill. Earlier this week, Agriculture Secretary Tom Vilsack announced USDA would accept more than one million acres from the signup period this year. Offers for new land in the general signup totaled about 295,000 acres. Producers submitted re-enrollment offers for about 891,000 expiring acres. *********************************************************************************** USDA Seeks Fiscal Year 2024 Suggestions for Plant Protection Projects USDA’s Animal and Plant Health Inspection Service seeks input for fiscal year 2024 Plant Protection Act funding to protect American agriculture and natural resources. The open period for submitting suggestions for Plant Pest and Disease Management and Disaster Prevention Program funding runs through August 9, 2023. APHIS will provide $75 million in plant protection funding for the projects, including at least $7.5 million for projects under the National Clean Plant Network. APHIS will set aside up to $4 million in funding to support Tribes, Tribal organizations and universities, as well as other minority-affiliated organizations. Under the Plant Pest and Disease Management and Disaster Prevention Program, APHIS provides funding to its partners to help them safeguard against, detect, and respond to invasive plant pests and diseases. Climate change has increased the level of plant pest infestations and disease infection, allowed pests to produce more generations each year, and extended the suitable habitat for plant pests. To submit suggestions, visit www.aphis.usda.gov.
| Rural Advocate News | Thursday June 15, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, U.S. retail sales in May and an update of the U.S. Drought Monitor, followed by a report on U.S. industrial production at 8:15 a.m. The U.S. Energy Department's weekly report of natural gas storage will be out at 9:30 a.m. and USDA's Livestock, Dairy and Poultry Outlook comes out at 2 p.m. Traders will continue to keep close track of the latest weather forecasts. Weather A front that has remained stalled across the southern tier of the country with active weather continues to be active on Thursday. Clusters of strong to severe storms will again be possible near the Gulf Coast while a more significant severe threat exists in the Southern Plains, including the word derecho. More areas of showers and thunderstorms will spread north through the rest of the Plains and Canadian Prairies, being heavier in Alberta and easing drought concerns there. Some needed showers will go through eastern areas of the Midwest as well.
| Rural Advocate News | Wednesday June 14, 2023 |
USDA Enrolls Over One Million Acres in CRP Ag Secretary Tom Vilsack says that USDA is accepting over one million acres in this year’s Conservation Reserve Program general signup. This is one of several signups that the Farm Service Agency is holding for the program. The results of CRP’s general signup reflect the continued importance of the program as a tool to help producers invest in the long-term health, sustainability, and profitability of their land and resources. Offers for new land in the general signup totaled about 295,000 acres nationwide. Producers submitted re-enrollment offers for about 891,000 expiring acres, reflecting the success of participating in CRP for the long term. The total number of acres will climb when FSA accepts acres from the Grassland CRP signup that closed on May 26. Producers will still need to develop a conservation plan before contracts go into effect on October 1. The number of accepted acres will be confirmed later this year. *********************************************************************************** Over $700 Million Available to Expand Rural Internet Access USDA is making $714 million dollars in grants and loans available to connect thousands of rural residents, farmers, and business owners to reliable high-speed internet. “High-speed internet is a key to prosperity for people who live and work in rural communities,” says USDA Secretary Tom Vilsack. “With this funding, we can ensure that rural communities have the internet connectivity needed to continue expanding the rural economy to make sure it’s a place of opportunity to live, work, and raise a family.” The announcement includes $714 million available for investments in 19 states, including Arizona, Idaho, Kansas, Minnesota, and several others. USDA continues connecting more and more people to high-speed internet in this fourth funding round of the ReConnect Program. The department has invested in a total of 142 ReConnect projects that will bring high-speed internet access to 314,000 rural Americans. More information on rural investment resources is available at rd.usda.gov. *********************************************************************************** Food Prices Rise Slightly in May After two straight months of flat food prices, the cost of food increased slightly during May. Overall food prices rose 0.2 percent from April to May. The New York Times says U.S. grocery prices rose 0.1 percent in May, up from April, when prices dropped 0.2 percent. The price of food at restaurants continued climbing, up 0.5 percent during the month. Food prices are rising at a slightly slower rate than they were during recent months but are still much higher than the prices were before COVID-19. Food prices have risen 6.7 percent higher during the past 12 months. After rising 0.5 percent in April, fruit and vegetable prices rose 1.3 percent in May. The index for meats, poultry, fish, and eggs dropped 1.2 percent during May after dropping 0.3 percent in April. The price of eggs dropped almost 14 percent, the largest drop in that index since January 1951. *********************************************************************************** NCGA Leadership Academy Applications Are Now Open Applications for the National Corn Growers Association’s Leadership Academy Class are now open. The program is designed to bring together a diverse group of grower-leaders who want to improve their ability to serve their state organizations, enhance their communication skills, and understand the important role of advocacy – all to advance the priorities of the nation’s corn growers and build the next generation of industry leaders. Through the program, NCGA members are empowered to pursue their leadership journey and utilize their skills to inspire others to act. The 2023-2024 class will meet in St. Louis, Missouri from August 7-9, for sessions on leadership, communication, and personal branding. The class then comes together in Washington, D.C., from January 22-24, 2024, for advocacy training. NCGA puts on the program with help from sponsors like UPL and FMC. First launched in 2019, the NCGA Leadership Academy has become the organization’s primary leadership development tool. *********************************************************************************** Concerns Remain at West Coast Ports Agricultural exporters are paying close attention to contract negotiations at the nation’s West Coast ports. The Pacific Maritime Association is accusing workers of deliberately slowing down operations. The union says that’s not happening. The association says terminal operations at the Port of Seattle halted over the weekend. Capital Press says International Longshore and Warehouse Union President Willie Adams points out that the West Coast ports are open while negotiations continue. Over 22,000 workers at 29 ports on the West Coast are working without a contract and have done so since July 1, 2022, and negotiations have lasted 13 months. During the last lengthy negotiations as recently as 2015, farm goods were delayed in getting shipped out. “We aren’t hearing about delays yet,” says Washington Potato Commission director of government affairs Matt Harris. “That doesn’t mean it can’t happen, and it would potentially disrupt the export growth that we’re trying to achieve.” *********************************************************************************** Soybean Stocks Rise Higher in June The Economic Research Service issued its June Oil Crops Outlook that predicted higher soybean ending stocks for the month. A higher carryover raised the 2023-2024 U.S. soybean ending stocks forecast by 15 million bushels to 350 million bushels. The increase in expected carryover stocks is due to a reduced 2022-2023 soybean export forecast from 2.01 billion bushels to two billion bushels on strong foreign competition. Despite an unchanged soybean crush volume in June, the higher extraction rates increased U.S. soybean meal supply. With higher supply and lower domestic demand, soybean meal exports for the 2022-2023 marketing year increased this month by 0.2 million short tons to 14 million short tons. The 2023-2024 global soybean ending stocks are estimated higher this month at 123.3 million metric tons on increased carryover from 2022-2023 and reduced crush in Argentina. Reduced soybean meal supplies in Argentina are partially offset by Brazil’s higher soybean meal exports.
| Rural Advocate News | Wednesday June 14, 2023 |
Wednesday Watch List Markets The U.S. Labor Department will release its May report of producer prices at 7:30 a.m. CDT Wednesday, followed by weekly energy inventories at 9:30 a.m. from the Energy Department. Many will tune in at 1 p.m. to see if the Federal Reserve raises the federal funds rate target or not, followed by a press conference for Fed Chairman Jerome Powell. The Environmental Protection Agency was supposed to announce final renewable volume obligations for biofuels Wednesday, but postponed the deadline one week to June 21. Weather remains the main attraction for grain traders. Weather A disturbance moving along an old frontal boundary will continue to create widespread areas of showers and thunderstorms from the southeastern Plains through the Southeast on Wednesday. Conditions favor some strong thunderstorms with potential for significant severe weather. All hazards are possible out of these storms. Meanwhile, another system is moving into the Canadian Prairies with promises for heavier rain in dry parts of Alberta. The front to that system will move into Montana with scattered showers later in the day.
| Rural Advocate News | Tuesday June 13, 2023 |
Farm Credit System Issues Ag Economic and Outlook Report The Farm Credit Administration board received a quarterly report on economic issues affecting agriculture recently. According to the report, inflation remains elevated in certain sectors of the economy despite interest rate hikes and supply chain improvements. For agriculture, drought has declined substantially across the western half of the country, and good spring weather conditions sped up planting progress for many crops. For several states in the Great Plains and Southwest, drought conditions will need to continue to be monitored. With strong prospects for large crops and the building of grain stocks in 2023, prices have weakened. While many input costs also have fallen, crop producers are likely facing tighter margins this year. Because of rising interest rates and seasonal lending fluctuations, Farm Credit System growth was slower in the first quarter of 2023 than it was for the same quarter the previous three years. The loan portfolio continued to perform well, but nonperforming assets increased. Despite the increase, the overall level of nonperforming assets remained low, at 0.53 percent of loans outstanding and other property owned. *********************************************************************************** Safe American Food Exports Act Introduced Lawmakers Monday introduced the Safe American Food Exports Act. The legislation would codify USDA’s role in negotiating regionalization agreements that allow livestock, poultry, and other animal products from unaffected areas of the country to continue to be safely exported in the event of an animal disease outbreak. Although USDA already works with the U.S. Trade Representative to develop the agreements, the legislation explicitly expresses congressional support for establishing regionalization agreements and promoting robust agricultural trade policies before any animal disease impacts the nation. Representative Randy Feenstra, an Iowa Republican, and Jimmy Panetta, A California Democrat, introduced the legislation in the House of Representatives. Feenstra says, “Like every producer fears, foreign animal disease can devastate flocks and herds, preventing our farmers from selling their high-quality product on the global market.” Feenstra says his bill ensures a disease outbreak in one part of the country does not impact other regions' ability to produce and export agricultural goods. *********************************************************************************** Canada Canola Council Supports Canada Joining USMCA Dispute Settlement The Canola Council of Canada supports the Government of Canada in joining the dispute settlement consultation with Mexico on agricultural biotechnology. The consultation was initiated by the United States under the U.S.-Mexico-Canada Agreement, and Canada joined today as a third party. There have been challenges to regulatory predictability in Mexico over the last few years, according to Canola Council. Regulatory approaches not grounded in sound science risk stifling access to innovations that farmers need to contribute to food security challenges, address climate-related production issues, and remain competitive and profitable. Canola Council of Canada President Jim Everson says, “It is essential that Canada's trading partners support and implement science-based regulatory systems.” Everson says more formal and substantive assurance is required to provide clarity and certainty about the regulatory approach moving forward. Mexico is a leading and valued market for Canadian canola and is Canada's largest agri-food export to that country, valued at $1.6 billion in 2022. *********************************************************************************** USDA Welcomes 2023 Tribal College Fellows to Washington, D.C. The Department of Agriculture Monday welcomed five faculty and staff from tribal colleges and universities and one state land-grant university to learn about USDA. The visitors are learning about research opportunities, programs, and services through The Tribal Fellowship. The program is part of USDA’s commitment to remove barriers to service for tribal nations. The Tribal Fellowship Program is administered by USDA’s Office of Tribal Relations. Agriculture Secretary Tom Vilsack says, "Tribal colleges are anchors in their communities, and these fellowships enhance the collaborations between tribal nations and USDA." The fellows will participate in intensive cross-training with USDA program leaders across the Department to identify areas for collaboration. At a later date, select fellows will spend a week at a USDA Agricultural Research Service research facility to collaborate on research between the tribal colleges and USDA. On their return home, the fellows can share their insights and experiences with students and colleagues in their communities. *********************************************************************************** Rural Social Connections Draw Healthcare Professionals The availability of healthcare professionals in rural areas lags that of urban areas, partly because of difficulties in recruiting and retaining healthcare professionals. USDA's Economic Research Service reports that when choosing rural locations to practice, healthcare professionals most often cite social aspects, such as the friendliness of the town, as an important factor in their decision. Similar factors come into play when these professionals choose to stay in their rural small towns. Other factors that reflect the importance of social relationships included being a good place to raise a family, having relatives or friends living nearby, familiarity with the area, the quality of professional contacts, and if the professional's family was settled in the town. Other factors, such as the quality of the medical community, the quality of schools, and opportunities for professional growth, also were cited as important. USDA compiled the data for its Healthcare Professionals Seek Social Connections When Moving to Rural Towns publication. *********************************************************************************** Demand Pushing Gas Prices Higher After falling last week, the nation’s average price of gasoline rebounded, rising 5.6 cents from a week ago to $3.57 per gallon. GasBuddy’s Patrick De Haan says, “The good news has continued for average diesel prices, which again fell last week to their lowest since early 2022, helping to relieve some pressure on hard-hit consumers of diesel.” The national average diesel price fell 1.6 cents in the last week and stands at $3.87 per gallon. Diesel prices at the top ten percent of stations in the country average $4.91 per gallon, while the bottom ten percent average $3.17 per gallon. While oil prices had rallied last week on OPEC+’s production cuts announced for 2024 and Saudi Arabia’s July cut of 1 million barrels, markets are still jittery over the potential for more rate hikes amidst stubborn inflation and banking sector challenges. In addition, Goldman Sachs cut its price forecast for crude by nearly ten percent as it sees Russian supply recovering.
| Rural Advocate News | Tuesday June 13, 2023 |
Tuesday Watch List Markets The U.S. Labor Department's consumer price index for May will be out at 7:30 a.m. CDT Tuesday and the Federal Reserve will begin its two-day meeting with a rate announcement due out Wednesday at 1 p.m. Traders will continue to keep close watch on the latest forecasts and will consider USDA's latest crop ratings from Monday afternoon. Weather A system wrapped up in the Great Lakes will bring scattered showers to some areas that missed out over the weekend on Tuesday. The front to that system has settled across the South, which will remain active today, potentially with more severe weather and heavy rainfall.
| Rural Advocate News | Monday June 12, 2023 |
Despite WOTUS Loss at Supreme Court, EPA Continues Fight for Biden Rule LINCOLN, Neb. (DTN) -- Despite a significant loss in the Supreme Court that likely will require the EPA to rewrite the Biden administration's waters of the U.S. rule, the agency on Monday filed an appeal seeking review of a preliminary injunction against the rule in 24 states. The Supreme Court on May 26 sided with Michael and Chantell Sackett in their ongoing wetlands battle with the EPA. In particular, the court ruled the agency has no legal basis to use the so-called significant-nexus test when making Clean Water Act determinations. The significant-nexus test is the backbone of the Biden administration's rule, meaning the administration likely has no choice but to withdraw and rewrite the rule. On the same day as the court's ruling, the Biden administration asked for and received an extension to June 29 of a court deadline in the U.S. District Court for the District of North Dakota. That court issued a preliminary injunction, stopping the EPA from enforcing the rule in 24 states. On Monday, the EPA filed an appeal to the U.S. Court of Appeals for the Eighth Circuit in St. Louis, Missouri, asking for review of the preliminary injunction. So far, the Biden administration has given no indication of its intentions with the WOTUS rule. That injunction is in effect in Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming. The Supreme Court ruled unanimously that the significant-nexus test used by the EPA and the U.S. Army Corps of Engineers was illegal. EPA Administrator Michael Regan issued a statement following the court's ruling, saying in part the decision "erodes longstanding clean water protections." Regan added, "The Biden-Harris administration has worked to establish a durable definition of 'waters of the United States' that safeguards our nation's waters, strengthens economic opportunity, and protects people's health while providing the clarity and certainty that farmers, ranchers, and landowners deserve. These goals will continue to guide the agency forward as we carefully review the Supreme Court decision and consider next steps." The Sackett case is considered by many experts to be a turning point in determining the reach of the Clean Water Act. Writing the majority opinion in the May 26 ruling, Justice Samuel Alito said the CWA's reach was far narrower than EPA and the Corps of Engineers have interpreted for years. "The EPA, however, offers only a passing attempt to square its interpretation with the text and its 'significant nexus' theory is particularly implausible," Alito wrote. He said the definition of waters of the U.S. is more limited. "And, in any event, the CWA never mentions the 'significant nexus' test, so the EPA has no statutory basis to impose it," Alito stated. The Sacketts have been battling EPA since 2007 for the right to build on land the agency has deemed to be a wetland. Their property sits on a lakefront and they've argued that there is no surface connection between the lake and their land.
| Rural Advocate News | Monday June 12, 2023 |
USDA Releases June WASDE Report USDA Friday released the June World Agricultural Supply and Demand Report. The forecast includes a decline in exports for corn and soybeans. The 2023/24 U.S. corn outlook is little changed from last month with increases to both beginning and ending stocks. Corn area and yield forecasts are unchanged. The season-average farm price received by producers is unchanged at $4.80 per bushel. This month’s U.S. soybean supply and use projections include higher beginning and ending stocks. Higher beginning stocks reflect reduced exports for 2022/23, down 15 million bushels to 2.0 billion based on lower-than-expected shipments in May and competition from South America. The soybean price is forecast at $12.10 per bushel, unchanged from last month. The outlook for wheat this month projects larger supplies, unchanged domestic use and exports, and higher stocks. The 2023/24 season-average farm price is lowered $0.30 per bushel to $7.70 on larger U.S. and foreign wheat supplies. *********************************************************************************** Commodity Groups Oppose OFF Act A coalition of 18 commodity groups recently voiced opposition to the Opportunities for Fairness in Farming, or OFF Act, in a letter to leadership of the House and Senate Agriculture Committees. If enacted, the groups say the legislation would substantially undermine their members’ ability to promote U.S. agriculture- and natural resource-based commodity products. The Trade Associations represent American farmers, ranchers, foresters, and processors of raw materials. The letter states, “Each of these industries plays a critical and irreplaceable role in the U.S. economy through the production of food, fiber, and other essential goods—all while creating jobs, stewarding resources, and supporting local communities across the country.” Proponents of the bill argue this legislation would increase transparency and close perceived loopholes in the statutes enabling checkoff programs. However, the commodity groups charge, “The bill would not create any new checks and balances to ensure compliance and fairness.” The groups urge lawmakers to oppose the legislation. *********************************************************************************** New USDA Tool Available for Small Businesses A new tool from the Department of Agriculture seeks to help industry and small disadvantaged entities identify potential opportunities for selling their products and services to the department. USDA's Procurement Forecast lists the types of anticipated solicitations that small businesses, small, disadvantaged businesses, women-owned businesses, HUBZone businesses, service-disabled veterans, and other businesses may be able to participate in contracts with USDA, or through subcontracting opportunities. USDA has eleven organizations that issue solicitations for anticipated purchases tied to the procurement forecast. Using the tool, interested parties can search USDA's procurement forecasts, filter the results, manipulate the display and download the results. Currently, forecast data for Fiscal years 2023 to 2025 is available. The effort complies with the Business Opportunity Development Reform Act of 1988, which amended the Small Business Act to place new emphasis on acquisition planning. The law requires agencies to compile and make available small business contracting opportunities. To learn more, visit usda.gov/procurement-forecast. *********************************************************************************** USDA Announces Dairy Industry Grants The U.S. Department of Agriculture last week announced $23 million in grant funding for the dairy industry. The funding is available to support processing capacity expansion, on-farm improvements, and technical assistance services to producers through the Dairy Business Innovation Initiatives. The Dairy Business Innovation Initiatives provide valuable technical assistance and subgrants to dairy farmers and businesses across their regions, supporting them with business plan development, marketing, and branding, as well as increasing access to innovative production and processing techniques to support the development of value-added products. The funds will be awarded noncompetitively to the current initiatives at the California State University Fresno, the University of Tennessee, Vermont Agency of Agriculture - Food & Markets, and the University of Wisconsin. Through the Request for Applications, the initiatives will have an opportunity to submit proposals for this year’s funding. Dairy farmers and businesses interested in the program must contact the appropriate initiative to be considered for direct technical assistance or a subaward. *********************************************************************************** Survey Details Farmland Ownership in Iowa As the average age of Iowa's farmland owners continues to rise, other trends in landownership have begun to emerge. According to an Iowa State University study, 58 percent of Iowa's farmland is now leased out, a significant increase from the last time the same study was conducted in 2017. An Iowa State researcher says, “This represents a relative increase of roughly one million acres over five years, which is quite significant.” Conducted by Iowa State since the 1940s, the Iowa Farmland Ownership and Tenure Survey--completed every five years--focuses on forms of ownership, tenancy and transfer of farmland in Iowa, and characteristics of landowners. Farmland leases also increasingly favor cash rent over crop sharing and owner-operating arrangements. In 2017, 82 percent of leased farmland was cash rented, but cash rent, predominantly fixed-cash rental contracts, now account for 87 percent of leased land. The survey found that the average age of Iowa's farmland owners is still increasing. *********************************************************************************** SNAP Online Purchasing Now Available in All 50 States Online purchasing using Supplemental Nutrition Assistance Program benefits is now available in all 50 states and the District of Columbia. The expansion represents a major milestone in the history of SNAP and continues to provide greater convenience and access to healthy food options for tens of millions of Americans. Alaska recently became 50th state to join the steady expansion since USDA first launched SNAP online purchasing four years ago as a pilot in New York. The availability of online purchasing in Alaska is an important step in promoting equity and access to food in remote and rural areas. The Department of Agriculture has been expanding the SNAP online purchasing pilot by approving and adding additional retailers. Since March 2020, 208 additional retailer chains have joined the program, representing thousands of actual stores. USDA’s Stacy Dean says, “Expanding the diversity and reach of SNAP online shopping helps advance our goal of modernizing SNAP and providing better access to healthy, safe, affordable foods.”
| Rural Advocate News | Monday June 12, 2023 |
Top 5 Things to Watch - Rain Systems, Grain Mergers and Trade Disputes OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of June 11. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Weather systems get active: A persistent upper-level ridge of high pressure has dominated Canada for quite some time now, putting a lid on the jet stream and directing it northward. That has kept conditions rather stagnant for the last several weeks, focusing rain into the Plains states instead of the Corn Belt. DTN meteorologists expect that ridge to fall apart, creating a more "active" weather pattern that should gin up thunderstorms across more of the U.S. in the coming weeks. 2. Brazil corn crop in crosshairs: USDA raised Brazil's current corn production expectations by 2 million metric tons in its June 9 report. But cool weather and frost potential looms, potentially taming those yield increases. We'll keep an eye on temperatures and weather reports from that country. 3. Grain mergers: We'll be continuing to follow the commentary around the proposed merger of grain giants Viterra and Bunge. Already the Wheat Growers Association in Canada has expressed concern over the grain sourcing share the combined company would have. 4. Cattle under stress: Whether hot and dry, or torrential storms, the coming weather patterns are adding to livestock stress. Watch for our coverage on what to look for, and what to do, if conditions get tough on your herd. 5. Reports to watch: This week sees a number of market-critical commodity and economic reports that we'll either be reporting on directly or including in our commentary and analysis through the week. Monday we'll have USDA's weekly grain export inspections and the Crop Progress report. Tuesday sees the U.S. consumer price index for May announced at 7:30 a.m. CDT, and the Federal Reserve begins its two-day meeting. Wednesday we'll have the U.S. producer prices for May, the Energy Department's weekly inventory and a Fed rate announcement at 1 p.m. CDT. Thursday's news is packed with government reports: The USDA weekly export sales report, weekly U.S. jobless claims, U.S. retail sales and another update of U.S. Drought Monitor -- all at 7:30 a.m. U.S. industrial production rings in at 8:15 a.m., followed by U.S. Energy Department's natural gas storage at 9:30 a.m. and the USDA Livestock, Dairy and Poultry outlook at 2 p.m. All times CDT. Friday sees that latest U.S. index of consumer sentiment at 9 a.m.
| Rural Advocate News | Monday June 12, 2023 |
Monday Watch List Markets Back from the weekend, traders will pay close attention to observed rainfall amounts, coverage and the latest forecasts. USDA's weekly report of export inspections is set for 10 a.m. CDT, followed by Crop Progress at 3 p.m. Outside markets will be aware of the Federal Reserve's next rate announcement on Wednesday. Weather A system that went through over the weekend is wrapping up in the Great Lakes Monday where showers are dwindling but remaining possible. The front to the system has settled across the South where showers and thunderstorms will be active throughout the day, including chances for severe weather and heavy rainfall. Cooler temperatures have settled into much of the country, but it is warmer in the Canadian Prairies again.
| Rural Advocate News | Friday June 9, 2023 |
Clean Fuels, RFS Stakeholders Send Letter to President Biden on RFS BBD Volumes Clean Fuels Alliance America and 75 industry stakeholders delivered a letter to President Joe Biden on Thursday. The letter urges the president to ensure that the Environmental Protection Agency substantially increases the biomass-based diesel and advanced biofuels volumes in the Renewable Fuel Standards for 2023, 2024 and 2025. The letter points out that EPA's proposed volumes fall far below the industry's current production and, if finalized, would undermine investments in the industry's expansion. EPA is expected to finalize the RFS volumes by June 14. The letter states, "The low volumes threaten the ability of new market sectors, like marine and aviation, to decarbonize in the near term." Clean Fuels was joined in the letter by several national industry associations and their members, including American Soybean Association, 22 state soybean associations, Diesel Technology Forum, National Energy and Fuels Institute, National Oilseed Processors Association, North American Renderers Association, and U.S. Canola Association. *********************************************************************************** Study Shows Emissions-Reducing Benefits of E15 A new study from the University of California – Riverside shows that the E15 ethanol blend provides notable emissions reductions compared to California's regular reformulated gasoline. The Renewable Fuels Association hailed the report as proof of the value of E15 for The Golden State, which has yet to allow the E15 blend to be used. RFA President and CEO Geoff Cooper says, “This new study shows what we've been arguing all along--that E15 offers emissions benefits that would help meet environmental goals in California.” According to the study, emissions of total hydrocarbons, non-methane hydrocarbons, and carbon monoxide all showed either marginally or statistically significant reductions for E15 compared to regular California gasoline. In addition, particulate matter and solid particle number emissions dropped substantially with E15, and E15 showed lifecycle greenhouse gas emissions savings when compared to E10. Nitrogen oxide emissions when using E15 showed marginal reductions in many cases, but the changes in Nitrogen oxide emissions were not statistically significant. *********************************************************************************** NMPF Board of Directors Approves Comprehensive Farm Bill Recommendations The National Milk Producers Federation this week approved a suite of farm bill policy priorities covering the commodities, conservation, trade, and nutrition titles. In the Commodities title, NMPF seeks to build on its successes in the last farm bill to strengthen the dairy safety net and provide producers with access to a range of risk management tools. NMPF’s board voted to support continuing the Dairy Margin Coverage safety net while updating the program’s production history calculation. NMPF seeks farm bill language to direct USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance reviews. This would complement the near-term make allowance update NMPF is pursuing through its Federal Milk Marketing Order initiative via the USDA hearing process announced last week. Similarly, the board also pursues restoring the previous “higher of” Class I mover in the most expeditious manner possible, either administratively via the FMMO process or legislatively through the farm bill, in which the mover was last changed in 2018. *********************************************************************************** R-CALF Opposes Paraguayan Beef Import Proposal In comments submitted to the Department of Agriculture, R-CALF USA requested the agency immediately withdraw its proposal to allow the importation of fresh beef from Paraguay. Historically, the United States has not engaged in trade of beef from Paraguay because APHIS has considered Paraguay to be a country affected with foot-and-mouth disease. The government of Paraguay has requested that the U.S. allow fresh Paraguayan beef to be imported into the United States. In response to this request, APHIS conducted a risk analysis, with the most recent on-site visit to Paraguay being nearly ten years ago, in 2014. The USDA has proposed a rule seeking to allow the importation of fresh beef from Paraguay. In its comments, R-CALF USA urged APHIS to withdraw its proposed rule on the grounds that it will cause an unnecessary and avoidable risk of introducing FMD into the United States, and subject U.S. consumers to beef from cattle that were not raised in compliance with United States' more stringent production standards. *********************************************************************************** Nebraska Farm Bureau Working with SpaceX to Expand Broadband Nebraska Farm Bureau is working with SpaceX’s Starlink to expand broadband access in the state. Mark McHargue, Nebraska Farm Bureau president, says, “We are excited to work with Starlink to deliver high speed broadband to rural areas in Nebraska that are underserved.” Starlink is engineered and operated by SpaceX. Starlink delivers high-speed, low-latency broadband internet capable of streaming, online gaming, video calls, and more to users worldwide. While the carriers, providers, and telecoms continue to grapple with federal and state monies to get quality broadband to rural areas of the country, Starlink and NEFB thought it was important to take this broadband service issue into our own hands and deliver the connectivity to our farm, ranch, and rural members in a way that avoids the regulatory hoops and the high cost of getting fiber to the "last mile.” Nebraska Farm Bureau members can take advantage of this new member benefit by visiting the Nebraska Farm Bureau website at nefb.org. *********************************************************************************** United States Serves up Large Chunks of Cheese to Top Destinations In 2022, the United States exported more than 450,000 metric tons of cheese, valued at approximately $2.3 billion. USDA’s Economic Research Service reports that top export markets include Mexico, South Korea, Japan, Australia, and Canada. U.S. cheese is a mainstay among imported cheeses in these countries. In 2022, U.S. cheese accounted for nearly one-fifth of cheese imported by Canada and Japan by value and nearly one-fourth of cheese imported by Australia. More than 43 percent of cheese shipped to South Korea originated from the United States. U.S. cheese dominates the import market in Mexico, with 87 percent of Mexico's cheese imports coming from the United States in 2022. Altogether, these five countries have accounted for nearly two-thirds of U.S. cheese exports since 2019, and U.S. cheese constitutes about a third of the value of all cheese imported by these five markets combined. Free trade agreements have partially supported U.S. cheese exports to each of these markets, including the U.S.-Mexico-Canada Agreement.
| Rural Advocate News | Friday June 9, 2023 |
Friday Watch List Markets USDA's WASDE and Crop Production reports for June are due out at 11 a.m. CDT Friday with coverage on DTN following the reports. DTN's WASDE webinar starts at 12:30 p.m. The latest weather forecasts continue to capture attention with much of the Midwest in dire need of rain after Thursday's Drought Monitor showed worsening conditions. Weather Isolated showers will be possible yet again for the Plains on Friday, mostly due to a stalled front from north to southeast in the region. But a cold front is sweeping into the Northern Plains and the combination of the two fronts should give rise to more widespread showers there through Friday night.
| Rural Advocate News | Thursday June 8, 2023 |
Whole Milk for Healthy Kids Act Moves Out of Committee The Committee on Education and the Workforce this week voted to advance a bill restoring whole milk in schools. The Whole Milk for Healthy Kids Act of 2023 highlights milk's health benefits and nutrients to young Americans, including better bone health, lower blood pressure, and reduced risk of cardiovascular disease or Type 2 diabetes. According to the most recent Dietary Guidelines for Americans, milk is a source of three out of four under-consumed nutrients – calcium, potassium, and vitamin D. The bill would allow for unflavored and flavored whole milk to be offered in school cafeterias. Representative Glenn “GT” Thompson, a Pennsylvania Republican and Chair of the House Agriculture Committee, says, “For too long, milk has been demonized, depriving a generation of students of 13 essential nutrients that are key to their overall health and academic success.” *********************************************************************************** NPPC Speaks Up on Policy Priorities at World Pork Expo The National Pork Producers Council hosted a policy panel this week at the 2023 World Pork Expo. NPPC board officers and experts discussed the pork industry’s current priorities vital to protecting producers’ livelihoods and ensuring pork production remains a pillar of the U.S. economy. NPPC President Scott Hays says, “Advocating for reasonable public policy, expanding exports, protecting our animals from foreign animal diseases and defending efforts to restrict what we do all help keep our farms successful.” Preparing for and preventing foreign animal diseases, addressing the agricultural labor shortage, and increasing pork exports are some of the top public-policy issues for pork producers. NPPC CEO Bryan Humphreys commented that recent policy successes and disappointments will impact producers for years to come. With the Supreme Court’s decision upholding California Proposition 12, another NPPC priority is working with the California Department of Food and Agriculture to ensure a smooth transition for farmers and consumers who want to continue buying pork at California grocery stores and restaurants. *********************************************************************************** Office of Small Farms Establishment Act Introduced in House and Senate New legislation introduced this week would increase support for farmers, ranchers, and foresters with small-acreage operations across the country. The Office of Small Farms Establishment Act would create a new office within USDA. The office would ensure that small-acreage operations have equitable access to the critical federal programs that provide farm loans, conservation funding, and crop insurance. New Jersey Democrat Cory Booker introduced the bill in the Senate, and Democrat Representatives Marilyn Strickland of Washington, Alma Adams of North Caroline and Jim McGovern introduced the bill in the House. Small farms are essential to local and regional food supply chains, bolstering rural economic vitality, food security, and community resilience, according to the lawmakers. Although they only cover eight percent of agricultural land, they are responsible for 20 percent of all agricultural sales. American Farmland Trust supports the legislation, as a spokesperson for the organization says, “This bill is really about ensuring equitable access to the full range of essential support” for farmers. *********************************************************************************** Avian Flu Losses in 2022 Impact on Consumer Prices USDA’s Economic Research Service reports frozen wholesale turkey breast prices climbed abruptly in response to the 2022 avian flu outbreak. Before the outbreak started in February 2022, both frozen whole bird and wholesale turkey breast prices had been increasing gradually. Cumulative losses because of avian flu surpassed seven million turkeys, and breast prices peaked at $2.98 per pound in the week ending October 7, 2022. Prices remained elevated for the remainder of the year. Once reports of new outbreaks slowed in mid-December 2022, whole turkey hen prices leveled off. At the same time, breast prices declined, averaging $2.34 per pound in the week ending April 28, 2023. This is $0.32 higher than a similar week in 2022, but down $0.64 from the peak price last year. Divergence in prices between frozen turkey breast meat and whole bird prices is, in part, explained by seasonality. Demand for whole birds is much more seasonal than wholesale demand for turkey breast meat. *********************************************************************************** NMPF Board of Directors Names Gregg Doud New President and CEO The National Milk Producers Federation's Board of Directors unanimously voted to name Gregg Doud as its next president and CEO. Doud will follow Jim Mulhern, who announced his retirement at the end of the year earlier this week. NMPF board chairman Randy Mooney says, “Dairy farmers across the nation are pleased to endorse a true champion of agriculture, someone who both understands the hard work we do and the opportunities and challenges we face both here and abroad.” Doud has served in numerous leadership roles in trade associations and government work in his more than 30-year career in agricultural policy and economics, most recently at Aimpoint Research. From 2018 to 2021, he served as Chief Agricultural Negotiator for the U.S. Office of the Trade Representative. Doud will begin official work at NMPF in September as its chief operating officer before assuming the role of president and CEO upon Mulhern’s retirement. *********************************************************************************** Teachers Share FFA and Agricultural Opportunities Teachers around the country are sharing the word about agriculture and agricultural education. More than 70 agricultural education teachers are sharing the message of agriculture as part of the National Teacher Ambassadors for FFA program. The program began in 2016 and provides teachers with the tools to share information about FFA and agricultural education with their communities. Teachers selected for the program receive intensive training in June and July to learn and collaborate on educational resources. Similar to last year, this year’s training will be virtual. Throughout the year, the ambassadors will present workshops and work with teachers nationwide to brainstorm and share ideas. The ambassadors will also serve as a voice of the organization to teachers. FFA senior educational consultant Sarah Dickinson says, “Through this program, we equip teachers with the tools they need to be successful in not only developing future leaders but also in telling their stories.”
| Rural Advocate News | Thursday June 8, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage will be out at 9:30 a.m. Traders will continue to pay close attention to the latest weather forecasts. Weather A cold front is backing its way westward through the Corn Belt with a string of showers that continues on Thursday. Some locally heavy amounts remain possible from that. A cold front that is sagging through the Canadian Prairies will be another area of isolated showers into Montana. Parts of the Southern Plains may also see some isolated showers as well. Cooler temperatures continue to settle into the Midwest, easing drought stress.
| Rural Advocate News | Wednesday June 7, 2023 |
Farmer Sentiment Sours as Crop Prices Decline Producer sentiment fell to its weakest reading since July 2022, as the Purdue University-CME Group Ag Economy Barometer Index declined 19 points to 104 in May. This month's weak sentiment reading was fueled by declines in both of the barometer’s sub-indices. The Index of Future Expectations declined 22 points to 98, while the Index of Current Conditions fell 13 points below a month earlier to 116. Crop price weakness helped trigger the sentiment decline. Eastern Corn Belt fall delivery bids for corn fell over $0.50 per bushel, down ten percent, and soybean bids declined over $1.00 per bushel, down eight percent. Nearly half of producers feel that the most important aspect of new Farm Bill legislation will be the Crop Insurance Title, while a fourth of producers say the Commodity Title will be the most important. Almost half of corn and soybean producers expect Congress to raise PLC reference prices for both crops when a new Farm Bill becomes law. *********************************************************************************** Barchart Releases 2023 Crop Production and Yield Estimates Barchart Tuesday released their initial 2023 crop production and yield forecasts for U.S. corn and soybeans. The report indicates a cutback to USDA’s projected figures from the May 12 World Agricultural Supply and Demand Report. The Barchart forecast calls for 15 billion bushels of corn production, compared to USDA’s 15.3 billion. Corn yield is projected at 177.9 bushels per acre, compared to USDA’s 181.5. Soybean production is forecasted at 4.4 billion bushels, compared to USDA’s 3.5 billion. Soybean yield is projected by Barchart at 50.6 bushels per acre, compared to USDA’s 52 bushels per acre. Barchart provides market data and services to the global financial, media, and commodity industries. Barchart’s Crop Production and Yield Forecasts provide users with decision-making support for crop marketing and ingredient purchasing ahead of traditional forecasts from the USDA. Bi-weekly crop production forecasts are available to the public for free, while enterprise data and cmdtyView Pro clients have access to daily forecast updates. *********************************************************************************** Research: CRP is Regionally Concentrated New data from USDA’s Economic Research Service finds the Conservation Reserve Program is regionally concentrated. The Conservation Reserve Program, or CRP, covered 22 million acres of environmentally sensitive land at the end of fiscal year 2022, with an annual budget of roughly $1.8 billion. This made CRP the USDA's largest single conservation program in terms of spending in FY 2022. Enrollees receive annual and other payments for taking eligible land out of production for at least ten years. Program acreage tends to be concentrated on marginally productive cropland that is susceptible to erosion by wind or rainfall. A large share of CRP land ranges from Texas to Montana across the Great Plains, where rainfall is limited, and much of the land is subject to potentially severe wind erosion. Smaller concentrations of CRP land are found in eastern Washington, southern Iowa, northern Missouri, the Mississippi Delta, southeastern Idaho, and northwestern Utah. *********************************************************************************** Rapid Snowmelt Results in Higher Missouri River Runoff Warm temperatures in the mountainous region of the upper Missouri River Basin has led to a quick melt of the mountain snowpack. The rapid melting combined with precipitation in the western half of the Basin resulted in above-average inflow into the reservoir system. May runoff for the Basin above Sioux City, Iowa, was 4.9 million acre-feet, 144 percent of average. John Reemus of the U.S. Army Corps of Engineers says, "With much of the mountain snowpack already melted, the basin will need additional rainfall to continue the trend of above-average runoff." The annual runoff forecast above Sioux City, Iowa, is 26.8 million acre-feet, 104 percent of average. While portions of the Basin received above-normal rainfall, precipitation was below normal during May. Gavins Point Dam releases will provide minimum-service navigation flow support at all four target locations of Sioux City, Omaha, Nebraska City, and Kansas City through the first half of the navigation season which ends on July 1. *********************************************************************************** Corteva, USAID, Announce Support for Ukrainian Farmers Corteva and the U.S. Agency for International Development, or USAID, recently announced a new collaboration to support Ukrainian farmers. Through the collaboration, USAID and Corteva Agriscience will advance the shared goals of increasing farmer access to crop inputs, financing, and post-harvest storage. A Corteva spokesperson says, “Ukrainian farmers are entering this planting season facing immense challenges.” Corteva Agriscience, which previously announced its decision to withdraw from Russia, is increasing its production of hybrid corn and sunflower seeds in the region by 30 percent over the next five years. The effort will help ensure a stable supply of seeds for Ukrainian farmers. Corteva is also increasing Ukrainian farmer access to the latest crop protection technologies, agronomic support, and financing tools - all key components required to plant a high-yielding, profitable crop. USAID is advancing the $100 million Agriculture Resilience Initiative (AGRI) - Ukraine to bolster Ukrainian agriculture exports and to help alleviate the global food security crisis exacerbated by the war in Ukraine. *********************************************************************************** Mulhern to Retire as NMPF President and CEO National Milk Producers Federation President and CEO Jim Mulhern announced Tuesday that he will retire at the end of this year. Mulhern will conclude a decade of service leading the organization and capping a 45-year career in U.S. agricultural and dairy policy. Mulhern says, "Directing the policy efforts of the nation's dairy farmers and their cooperatives has been the highlight of my professional career." Mulhern began as President and CEO in 2013 and guided NMPF through two completed farm bills, the COVID-19 crisis, and an ever-quickening pace of change in the industry. After coming to Washington to work on Capitol Hill in 1982, he began his first stint with NMPF in 1985, directing the organization's government affairs activities and shaping NMPF's strategy in the face of earlier farm crises. The topic of naming a new top executive at NMPF will be discussed at NMPF’s Board Meeting this week in Arlington, VA.
| Rural Advocate News | Wednesday June 7, 2023 |
Wednesday Watch List Markets The U.S. Commerce Department will report on the trade deficit for April at 7:30 a.m. CDT and provide export data that will be released by USDA later Wednesday morning. At 9:30 a.m., the U.S. Energy Department's weekly inventory report will be out, including ethanol production. Traders will continue to monitor the latest weather forecasts. Weather A cold front continues to push south and west through the Midwest on Wednesday, which is bringing in some cooler air into the region from Canada. It is also bringing some isolated showers on the western half of the front, which are sorely needed but not nearly enough. Additional showers and thunderstorms will move again through the Prairies and Plains to the Gulf Coast as well.
| Rural Advocate News | Tuesday June 6, 2023 |
USDA Kicks Off Agribusiness Trade Mission to Japan USDA Trade and Foreign Agricultural Affairs Undersecretary Alexis Taylor Monday launched an agribusiness trade mission to Japan. The U.S. delegation includes representatives from 11 state departments of agriculture, numerous farm organizations, and 40 agribusinesses looking to connect with future business partners in Japan. Taylor says, "As one of the largest world economies, Japan is one of the top and most reliable trading partners for the United States." Japan is one of the top and most reliable trading partners for the United States. Every year over the past two decades, Japan has imported at least $10 billion worth of U.S. food and agriculture products, reaching a record-high $14.6 billion in 2022. Throughout the week, USDA will help facilitate business-to-business meetings between participating small and medium-sized U.S. agribusinesses and Japanese buyers seeking to import American food and farm products. The trade mission itinerary also includes meetings with Japanese and local government officials and industry groups to discuss trade issues and unique opportunities. *********************************************************************************** AFT Releases White Papers Detailing Farm Bill Recommendations American Farmland Trust Monday released two new white papers that further illustrate its priorities to increase adoption of conservation practices in the next Farm Bill. The priorities include the creation of a federal match to help states and Tribes build up their soil health programs, and increased support for farmer-to-farmer education to accelerate adoption of conservation practices. AFT Policy Director Tim Fink says, “AFT’s is working this Farm Bill to keep land in farming, keep farmers on the land, and to help farmers adopt sound farming practices.” Creating a Federal Match for State and Tribal Soil Health Programs in the Next Farm Bill urges Congress to build up locally-led programs that supplement and fill gaps in NRCS conservation support. Improving On and Increasing Access to Conservation Programs in the Next Farm Bill focuses on how programs can continue their work supporting voluntary, locally-led conservation while ensuring equitable access for farmers. AFT also recommends Congress establish an Office of Small Farms at USDA to support lower-acreage producers. *********************************************************************************** Noble Research Institute Launches Regenerative Ranch Management Program Noble Research Institute Monday announced the launch of its Essentials of Regenerative Ranching program. The effort is designed to help ranchers monitor and improve the health of their land, livestock and livelihood. Essentials provides producers with practical tools, hands-on experience and guidance to break free from the cycle of high inputs and low returns. Farmers and ranchers navigate uncertainty from weather, fluctuating market prices and skyrocketing inputs. Many producers seek new skills and tools that offer greater control and reduce operational uncertainty. While regenerative ranching can help mitigate or avoid some of these issues altogether, ranchers may struggle to find reliable information about implementation or fail to receive support needed for lasting success. In response, Noble Research Institute designed Essentials of Regenerative Ranching to offer farmers and ranchers guidance in using core principles and proven monitoring methods. The first in-person training will be offered July 11-12, 2023, at Tarleton State University in Stephenville, Texas. Registration is open now at www.noble.org/. *********************************************************************************** FFA Members Attending Washington Leadership Conference For more than 50 years, thousands of FFA members from across the country have converged in our nation's capital each summer to engage with legislators, hone civic engagement and leadership skills, and create community impact projects to take back to their cities and towns. National FFA Organization members are in Washington, D.C., this week as part of the National FFA Organization's Washington Leadership Conference. The more than 50-year tradition brings thousands of FFA members to Washington, D.C., to interact with legislators, hone civic engagement and leadership skills, and create community impact projects. More than 2,000 FFA members from throughout the country are expected to attend the 2023 conference. FFA members will spend the week under the guidance of agricultural and leadership professionals, facilitators, and FFA staff. FFA members will also have the unique opportunity to participate in congressional visits with legislators from their states during the week. Members can share concerns and challenges from their communities and discuss agricultural-related legislation. *********************************************************************************** “Natural” Labeled Foods Account for 16% of Consumer Spending New Data from USDA’s Economic Research Service shows foods labeled “natural” accounted for slightly more than 16 percent of consumer retail food purchases in 2018. USDA and the Food and Drug Administration require producers to adhere to specific standards or processes to use certain label claims, such as USDA Organic. The “natural” claim, however, has minimal requirements and using the claim on a food product’s packaging does not require that the product provide any health or environmental benefits. Regulatory agencies treat the claim as meaning nothing artificial was added, and the product was minimally processed. Even so, consumers sometimes attribute benefits to products labeled "natural," research studies show. The share of products labeled "natural" varies by food category. The share of spending on "natural" products in 2018 was highest for dairy products, at 27.7 percent, and lowest for fruits and vegetables, at 5.9 percent and 5.4 percent, respectively. *********************************************************************************** OPEC Could Derail Fuel Price Declines With the summer driving season now underway, the nation's average price of gasoline declined 3.9 cents from a week ago to $3.51 per gallon. The national average diesel price fell 3.4 cents last week and is $3.88 per gallon. However, GasBuddy's Patrick De Haan warns OPEC could change the course of fuel prices this summer. OPEC+ agreed Sunday to additional production cuts, while Saudi Arabia is going above and beyond and cutting July production. As a result, De Haan says, "oil prices are likely to see upward pressure as global supplies, which have remained tight, promise to become even tighter as a result." Oil prices could rally this week and push fuel prices higher, but De Haan says any rise in average prices should be fairly small. U.S. retail gasoline demand saw a 2.3 percent fall last week, with the most common U.S. gas price at $3.39 per gallon.
| Rural Advocate News | Tuesday June 6, 2023 |
Tuesday Watch List Markets The U.S. Energy Department's Short-term Energy Outlook is due out Tuesday with interest in its estimates of world oil supply and demand after OPEC decided to cut production by one million barrels a day Sunday. There are no other significant reports Tuesday, but traders will continue to monitor the latest weather forecasts. Weather A cold front is slipping south through the Midwest on Tuesday, with part of it pushing southwestward toward the Plains. The front will be somewhat active with some isolated showers developing along it. Isolated to scattered showers will develop in the Southern Plains to the Gulf Coast as well as the Canadian Prairies.
| Rural Advocate News | Monday June 5, 2023 |
USTR to Initiate USMCA Dispute Settlement with Mexico The U.S. Trade Representative’s Office announced that it is filing a dispute settlement under the U.S.-Mexico-Canada Agreement in response to Mexico’s ban on biotech corn for human consumption. The National Corn Growers Association has called on the administration to act and praised the development. “Mexico’s actions, not based on sound science, have threatened the financial well-being of corn growers and rural communities,” says NCGA President Tom Haag (HAYG). Under the agreement, once a dispute settlement gets filed, a group of objective experts will hear the case and make a final determination based on the commitments of both parties under the free trade agreement. Tai says Mexico’s measures are inconsistent with several of its obligations in the Sanitary and Phytosanitary Measures and Market Access chapters of the agreement. “The USMCA was written to ensure that all producers in the three countries have full access to each other’s markets,” says Ag Secretary Tom Vilsack. *********************************************************************************** USDA Proposes Action Plan to Modernize FMMOs The National Milk Producers Federation applauds USDA for proposing its “Action Plan” for a national hearing based on NMPF’s proposal to modernize Federal Milk Marketing Orders. The federation looks forward to the next phase of creating a federal order system that better reflects today’s market conditions and dairy producer needs. “We’re grateful USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full because the whole of our plan adds up to more than the sum of its parts,” says NMPF President and CEO Jim Mulhern. “We held more than 150 meetings and wide consultation across dairy producers and the entire industry in coming up with our plan.” The agency says the action plan may include a tentative hearing start date of August 23, 2023. The USDA received the federation’s formal proposal to amend the pricing provisions of all 11 FMMOs on May 2. *********************************************************************************** USB CEO Ruhland Stepping Down Polly Ruhland, CEO of the United Soybean Board, will leave her position effective December 31, 2023. Ruhland has led the organization for six years and played a pivotal role in driving significant organizational changes and setting a foundation for USB’s future. “Polly has been a visionary leader for USB during a very transformative time,” says Meagan Kaiser, USB Chair. “A true servant-leader, her biggest contribution and lasting legacy is building a first-class staff that we can rely on.” During the past six years, USB embarked on a transformative journey marked by numerous accomplishments and milestones, including developing and implementing a comprehensive strategic plan. The plan also reinforced USB’s commitment to innovation, sustainability, and market development. Kaiser will form a search committee to identify a new Chief Executive Officer. The committee will begin the search after USB’s July board meeting to have a new CEO in place by the end of 2023. *********************************************************************************** Senate Ag Chair Comments on Debt Agreement Senate Ag Chair Debbie Stabenow of Michigan was pleased that the Senate voted to pass the bipartisan bill to avoid a debt default, calling it critical for our economy and families. “I’m pleased this agreement protects the important steps that we’ve taken over the last two years to rebuild America, bring jobs home, lower the costs of health care, and tackle the climate crisis,” Stabenow says. Stabenow also says she’s deeply disappointed by the changes that were agreed to in the Supplemental Nutrition Assistance Program. “As the Ag, Nutrition, and Forestry Committee Chair, I intend to produce a bipartisan farm bill that protects critical nutrition and food assistance programs for all Americans,” she said. “And as far as I’m concerned, the work requirements issue is settled for this Congress.” She intends to in no way further erode the dignity of Americans who need roughly $6 a day to buy food. *********************************************************************************** Milk Producers Oppose Shortsighted Infant Formula Legislation The National Milk Producers Federation strongly opposes legislation introduced in both chambers of Congress that would increase U.S. vulnerability to infant formula supply disruptions. The bill would increase U.S. reliance on imported formula and formula inputs. It would also unilaterally and permanently remove tariffs and tariff rate quotas on infant formula and infant formula base powder, resulting in lost jobs and foreign dependence. “This bill puts in place new one-way street trade conditions that would harm dairy farmers, cooperatives, and processors,” says Jim Mulhern, NMPF president and CEO. “We vehemently object to putting unilateral import expansion on the backs of U.S. dairy farmers.” The organization says the bill is a misguided response to the dire shortages of infant formula that occurred last year after a temporary production crisis at a large U.S. formula manufacturing plant. The FDA says formula stocking levels are higher than those seen before last year’s shortage. *********************************************************************************** Legislators Oppose Discriminatory Brazilian Tariffs on Ethanol A bipartisan group of congressional members is asking U.S. Trade Representative Katherine Tai to prioritize ethanol export competitiveness and address unfair import tariffs Brazil has in place on U.S. ethanol. The letter, signed by 21 members, highlighted the importance of biofuel and ethanol production for rural communities throughout the country. Recently announced import tariffs by Brazil on American ethanol would negatively impact American agriculture, which previously received duty-free treatment from Brazil. “We believe the tariff imbalance is unjustified and puts American ethanol and farmers at risk,” the letter says. “We strongly urge you to prioritize American ethanol export competitiveness in the Brazilian market by addressing these unfair policies.” The letter also says should Brazil’s unfair treatment continue, the lawmakers then stand ready to work with Tai to consider measures that protect American farmers and biofuel producers to help counter these unfair trade practices. Brazil’s tariff was reinstated on February 1.
| Rural Advocate News | Monday June 5, 2023 |
Top 5 Things to Watch - WASDE, El Nino and Debt Next Steps 1. WASDE week again: Friday will see the June World Agricultural Supply and Demand Estimates report from USDA. We'll share expectations in our preview story Wednesday. As for the report itself, our initial report flash posts after 11 a.m. CDT, with updates through the morning. 2. El Nino takes hold: The shift from La Nina to El Nino, something DTN meteorologists have talked about since early winter, appears to be moving along. Already we see winners and losers in terms of timely rainfall, a variability that is common with the "Little Boy" pattern. 3. Debt ceiling next steps: The government default may be averted, but there is much yet to learn about federal spending, including Supplemental Nutrition Assistance Program (SNAP) discussions. All this could affect farm bill negotiations going forward. We'll continue to watch and report what we learn as the details eke out. 4. GOP hopefuls: A smattering of potential Republican presidential candidates gathered in Iowa the last few days and on June 3. DTN Policy Editor Chris Clayton will follow up and what was said and what was heard. 5. Reports to watch: We'll have the weekly USDA Crop Progress Report Monday afternoon. Wednesday sees the U.S. trade deficit numbers and the U.S. Energy Department's weekly inventory reports. Thursday USDA releases its weekly export sales, plus the weekly U.S. jobless claims numbers come out and we'll see an update of U.S. Drought Monitor.
| Rural Advocate News | Monday June 5, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and note any news from OPEC's meeting on Sunday. U.S. factory orders are scheduled for 9 a.m. CDT Monday, followed by USDA's weekly report of export inspections at 10 a.m. USDA's Crop Progress report at 3 p.m. will include initial crop ratings for soybeans and spring wheat. Weather After a weekend of widespread rainfall across a lot of the Plains and western Midwest, Monday looks to be a quieter day for many areas. There will still be isolated to scattered showers from the Prairies to the Gulf Coast, however, and more frequent for those southern areas. Temperatures remain quite warm for many areas for this time of year.
| Rural Advocate News | Friday June 2, 2023 |
USDA Lowers 2023 Ag Exports The USDA says America’s agricultural exports in fiscal year 2023 are forecast at $181 billion, down $3.5 billion from the February forecast. The revision is driven by decreases in corn, wheat, beef, and poultry exports. Corn exports are forecast $2.1 billion lower to $14.5 billion on lower unit values and volumes as Brazil is projected to harvest a record second-corn crop. Wheat exports are projected down $900 million to $7.4 billion because of lower volumes and values, as well as increased competition. Soybean exports are projected up $300 million to $32.3 billion on slightly higher volumes. Total livestock, poultry, and dairy exports are expected to decrease by $1.2 billion to $39.3 billion. Declines in beef and poultry exports will more than offset increases in dairy exports. Cotton exports will be $6 billion, up $200 million, as higher volumes more than offset lower unit values. Ethanol exports were unchanged at $3.6 billion. *********************************************************************************** Rising Cost of Carry is Hitting Grain Elevators’ Bottom Lines A new report from CoBank says grain merchandisers have endured rising costs of storing or carrying grain and oilseed inventories during the past year because of rising interest rates. Higher crop prices and rising operating costs like transportation, insurance, fuel, electricity, and labor are also squeezing grain elevators. CoBank forecasts the financial cost of carry will reach record highs in the upcoming 2023-2024 crop year for corn, wheat, and soybeans. Grain elevators are required to buy and market members’ crops, regardless of whether the economics are favorable. The one thing elevators do control is their local bids. Inverted futures markets further penalize elevators for having to store grains and oilseeds. If interest rates stay at their current high level and futures markets remain inverted into the new crop year, then many grain cooperatives are expected to lower their bids and widen their basis to cover the high cost of storing commodities. *********************************************************************************** National Dairy FARM Excellence Award Nominations Open The National Dairy Farmers Assuring Responsible Management Program Excellence Awards are back for a third year. The awards recognize farms and evaluators who demonstrate excellence in the FARM Program. Awards are given in four categories, including Animal Care and Antibiotic Stewardship, Environmental Stewardship, Workforce Development, and FARM Evaluator. “We are so proud of the farms that participate in our program areas and our dedicated evaluators,” says Emily Stepp, executive director of the FARM Program. “We believe it’s important to publicly recognize the people that make the FARM Program so successful.” Farms or FARM evaluators can be nominated by fellow dairy farmers, community members, extension, cooperative and processor staff, veterinarians, and themselves. Nominations are open through August 1. Nominated farms must have a current FARM Program evaluation in the respective category area and must be in good standing with the program. Evaluators must be FARM Program certified. More information is at nationaldairyfarm.com. *********************************************************************************** Legislation will strengthen America’s Food Supply Congressman Tom Tiffany of Wisconsin reintroduced the Guaranteeing Robust Agricultural Independence and Nutrition for America (GRAIN) Act. It would place a one-year moratorium on the enrollment of farmland in the Conservation Reserve Program, which pays farmers to leave land uncultivated. After the one-year moratorium, the bill would prevent prime farmland from getting enrolled in the CRP. “Food security is national security, and America needs to be taking the necessary steps to shore up our food supply,” Tiffany says. “We can only have a prosperous future if we allow our nation’s farmers to unleash their full production potential.” He also says the bill came about because the administration expanded the CRP in a “green fantasy” attempting to achieve net-zero emissions. Tiffany’s GRAIN for America Act would not impact farmland that is already a part of the CRP. Additionally, farmers who already have land in the CRP can re-enroll during the moratorium. *********************************************************************************** Reps Push USTR for Actions on Mexico Under the USMCA Representatives Michelle Fischbach of Minnesota and Adrian Smith of Nebraska led 62 colleagues in a letter to U.S. Trade Representative Katherine Tai regarding Mexico. The House members are calling on Ambassador Tai to fully utilize the tools available under the U.S.-Mexico-Canada Agreement to hold Mexico accountable for its commitments. They’re asking Tai to proceed with a formal USMCA dispute to address Mexico’s discriminatory policies banning U.S. biotech corn. “Now that the thirty-day period for consultations has lapsed without Mexico making any changes, we urge you to take swift enforcement action by initiating a USMCA dispute,” the letter says. “Two months have passed since you made strong comments on Mexico during Congressional testimony, and we strongly believe it’s time to take additional steps in the matter.” The letter also points out that a lack of action would create a dangerous precedent that promises made under USMCA can be ignored without consequence. *********************************************************************************** FFA Hires Equity Executive in Residence The National FFA Organization named Corey Flournoy as the executive in residence for equity, diversity, and inclusion. In the new role, Flournoy will guide the leadership team and national boards in EDI matters. He’ll design, implement, and evaluate an EDI strategy that aligns with the organization’s strategic plan. “We’re excited to have Corey as a part of our team in this role,” says Scott Stump, CEO of the National FFA Organization. “We want to ensure our current and future members feel welcomed, and FFA is indeed a place for all to feel valued and contribute to our mission. Corey is the right person to help us achieve that goal.” Flournoy is a former FFA member and the first African-American FFA president. He brings over 30 years of experience and leadership in diversity and inclusion programming. “My overall goal is to help us rethink how we talk about and approach EDI,” Flournoy says.
| Rural Advocate News | Friday June 2, 2023 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Friday, the same time as nonfarm payrolls and the U.S. unemployment rate for May. Traders will continue to monitor the latest weather forecasts and keep tabs on the effort to raise the debt ceiling. Weather Areas of scattered showers and thunderstorms will continue to develop in the Plains and parts of the western Midwest on Friday. Areas of heavy rain are expected to occur, most likely around Montana and west Texas, which may cause flooding. Temperatures continue to be above normal for most places.
| Rural Advocate News | Thursday June 1, 2023 |
West Coast Ports Losing Business as Negotiations Continue West Coast ports in the U.S. started negotiating a new labor contract just over a year ago. While working without a new contract in place isn’t unheard of, the contract has now been expired for over 10 months. A report from the U.S. Meat Export Federation says the labor uncertainty is having an impact on red meat exports. “There’s a lot of questions and uncertainty surrounding the west coast ports,” says USMEF President and CEO Dan Halstrom. “Those ports are a vital starting point for a large number of our shipments to Asia.” The Long Beach and LA ports shut down in mid-April and were followed by further disruptions later that month. He says USMEF is seeing a reduction in imports, and some discretionary cargo is getting diverted away to ports in the Gulf of Mexico and the East Coast. “This isn’t good news for the meat industry,” he says. *********************************************************************************** FAO Issues Report on World’s Hunger Hotspots The United Nations Food and Agriculture Organization has issued an early report on places it expects to be hunger hotspots from June to November. The FAO says food insecurity is likely going to increase in magnitude and severity in 18 hunger hotspots in 22 countries. The report spotlights the risk of spillover in the Sudan crisis, raising the risk of negative impacts in the surrounding countries. It also says deeper economic shocks will continue to drive low- and middle-income nations deeper into crisis. FAO is also warning that a likely El Niño climate event will raise fears of climate extremes in the most vulnerable nations around the world. All of the hotspots at the highest level of concern have populations facing or projected to face starvation or are at risk of deterioration towards those conditions. Countries like Afghanistan, Nigeria, Somalia, and South Sudan remain at the highest level of concern. *********************************************************************************** Global Clean Energy Kickstarting a Climate-Smart Camelina Project Global Clean Energy Holdings and USDA have signed a contract for the Partnerships for Climate-Smart Commodities grant for their Climate-Smart Camelina (kam-uh-LEE-nah) Project. Now that the agreement is signed, work can officially begin on their $30 million project to measure and validate the advantages of camelina as an ultra-low carbon nonfood renewable fuel. The project will implement, measure, and validate the advantages of camelina in both rotational and winter crop production systems. The goal is to accelerate farmers’ adoption of camelina grown to produce feedstock for renewable biofuels and chemicals without causing land-use change and while increasing carbon capture in the soil. Climate-Smart Camelina will also support market development to provide additional revenue streams for growers and provide a premium for this low-carbon intensity crop. “We’re excited to begin this important work,” says Richard Palmer, CEO of Global Clean Energy. “Camelina could be the lowest-carbon intensity feedstock option on the market.” *********************************************************************************** Groups Pushing for Passage of Shipping Reform Implementation Act The Ocean Shipping Reform Implementation Act is designed to help with slowdowns and other issues at U.S. ports. The Ocean Shipping Reform Implementation Act follows the Ocean Shipping Reform Act passed a year ago. The first bill gave the Federal Maritime Commission the power to address the actions of foreign carriers leaving U.S. ports empty and not carrying American goods back home. The new Reform Implementation Act clarifies the FMC role and focuses attention on shipping exchanges. The goals are to streamline port logistics, reduce disruption, and address the influence of Chinese companies on shippers’ operations. U.S. ports are also prohibited from using Chinese state-sponsored software. The FMC can now investigate foreign shipping exchanges like the Shanghai Shipping Exchange to prevent improper business practices. A report from Supply Management says the sponsoring legislators point out it gives the FMC the authority to protect U.S. ports, shippers, and manufacturers from Chinese influence. *********************************************************************************** Weekly Grain Inspections Drop, Bean Assessments Head Higher A USDA report says inspections of corn and wheat for overseas delivery were down week-to-week, while soybean assessments improved during the week ending on May 25. Corn inspections fell to 1.31 million metric tons during the week, down from 1.33 million tons. That’s also lower than the 1.41 million tons inspected during the same week last year. Wheat assessments drop to just over 382,000 metric tons from over 440,000 the prior week. That was up from the 344,300 metric tons during the same week in 2022. Soybean inspections rose to 239,736 metric tons from 166,590 tons the week before. That’s still down from the 404,300 tons assessed during the same week last year. Since the start of the marketing year, USDA has inspected 28.7 million metric tons of corn for offshore delivery – down from 43.3 billion tons last year - 48.5 million metric tons of soybeans, and 19.6 million tons of wheat *********************************************************************************** Water-Quality Certified Farms Make More Profits A study from the Minnesota State Agricultural Centers of Excellence says using water quality practices on the farm has financial benefits. For the fourth year in a row, farmers enrolled in the state’s Agricultural Water Quality Program had higher profits than those that didn’t. More than 100 farms enrolled in the water certification program throughout the state. Forty-three of the state’s 87 counties were represented. On average, water quality-certified farms brought in $23,500 more than non-certified farms, which was a 7.5 percent increase in profits. The average net income was more than $317,800 for farms involved in the study, while the state average was $257,600. “This clearly states the case for water quality certification,” says Keith Olander, AgCentric director. “I can say this because we’re also doing this with cover crops, and we want to carry that forward and see where the environmental metrics go to help farmers with their decisions.”
| Rural Advocate News | Thursday June 1, 2023 |
Thursday Watch List Markets At 7:30 a.m. CDT Thursday, weekly U.S. jobless claims will be out, along with a report on first-quarter productivity and an update of the U.S. Drought Monitor. An index of U.S. manufacturing is set for 9 a.m. The U.S. Energy Department's natural gas storage report will be out at 9:30 a.m. CDT, followed by weekly inventories, including ethanol production at 10 a.m. The monthly Fats and Oils report from NASS is set for 2 p.m. Weather As has been the case all week long, showers and thunderstorms continue to develop in parts of the Plains, being heavy in some spots where they occur, which may produce flooding. The Texas Panhandle has been hit repeatedly but other areas up and down the Plains could see some locally heavy rain as well. Some isolated showers and thunderstorms may occur in parts of the western Midwest and Southeast.
| Rural Advocate News | Wednesday May 31, 2023 |
USDA Extends Deadline for Revenue Loss Programs USDA is extending deadlines for the Emergency Relief Program Phase Two and the Pandemic Assistance Revenue Program to July 14. The goal is to give producers more time to apply for the assistance. Also, USDA’s Farm Service Agency is partnering with nine organizations to provide educational and technical assistance to agricultural producers and provide assistance in completing an ERP Phase Two application. “Farm Service Agency recognizes that there is a learning curve for producers applying for the new revenue-based programs, and we want to make sure producers have the time they need to apply for assistance,” says FSA Administrator Zach Ducheneaux. “Partnering with these organizations through cooperative agreements provides additional assistance to producers who need help with ERP Phase Two.” The groups include Farmers Legal Action Group, Inc., the North South Institute, Rural Coalition, and others. For more information on the nine organizations and their contact information, go to fsa.usda.gov. *********************************************************************************** Next USDA Trade Mission Heading to Japan USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead an upcoming trade mission to Japan on June 5-8. The delegation will include a large representation of American agriculture, including businesses, state agriculture departments, and commodity groups. “As one of the world’s leading economies, Japan is an important market for U.S. food and agricultural exports,” Taylor says. “It’s an honor to lead this delegation as we work to expand our bilateral trade relationship even further.” Japan is the fourth-largest market for U.S. food and agricultural exports. In 2022, American exports matched the previous record of $14.6 billion. Exports of specific products like soybeans, dairy, and others reached new highs. The United States is vital to ensuring food security in Japan, with almost a quarter of Japan’s food and ag imports coming from American exporters. Trips like this are important for engaging directly with potential buyers and Japanese industry experts. *********************************************************************************** Talks Continue on Merging U.S. and Canadian Ag Giants Glencore, a global commodities trader, is in talks to merge its agricultural division. The Globe and Mail says the company wants to merge Viterra, Ltd, a large Canadian company acquired in 2012, with Bunge Ltd. If the merger takes place, it will create a large North American-based company. Viterra operates a large number of grain elevators, specialty crop facilities, processing plants, and port terminals through most of Canada and parts of the U.S. Glencore wants to merge it with Bunge, based out of St. Louis, one of the world’s dominant ag companies with a market value of $14 billion. Glencore first proposed a merger idea with Bunge in 2017 but was turned down. A source close to the discussions says a deal seems much more likely this time than six years ago, but the sides haven’t agreed on a final price. Glencore originally bought Viterra for $6 billion in 2012. *********************************************************************************** Safety From too Much Sun People working in production agriculture spend a lot of time out in the sun, and their risks are high for skin cancer. While the warm sun often feels good on the skin, it’s important to take steps to protect yourself from overexposure and reduce skin-related risks. The Upper Midwest Agricultural Safety and Health Center says appropriate sun protection includes covering the whole body with clothing, wearing a hat with a full brim, having adequate sunscreen coverage, and sunglasses. As a part of its safety checklist, they remind farmers to wear long-sleeved shirts and pants when out in the sun. Hats should be wide-brimmed and all the way around the head. An appropriate sunscreen should be anywhere between SPF 30-50 and should be reapplied every two hours or more frequently with heavy sweating. Wear sunglasses to protect the eyes. Check your skin regularly and talk to a doctor about any changes you see. *********************************************************************************** Congressional Leaders, White House Reach Debt Ceiling Agreement Congressional leaders and the White House reached an agreement on extending the debt limit. The new agreement is expected to reach the House floor for debate by Wednesday. The two sides reached an agreement including compromises on work requirements in the SNAP program. Chris Gibbs, Board President of Rural Voices USA, says now that the agreement has been reached, it’s time for Congress to get it passed. “Rural America would be hammered by default and its cascading impacts on retirement savings, farm credit, access to capital, benefits, and more,” he says. “In addition to avoiding this politically-manufactured crisis, Congress needs to get back to the legislating business.” Gibbs also says it’s time to invest in rural America through healthcare and education, expanding new markets for American agricultural products, and protecting every American’s right to vote. With SNAP work requirements settled, it should provide a somewhat smoother path toward the next farm bill. *********************************************************************************** Drought Area Spreading in Parts of Rural America USDA Meteorologist Brad Rippey is looking back at May and notes some farmers are still concerned about drought. “It’s been dry over much of the Midwest during the last one to three months, depending on where you’re at,” Rippey says. The American Meteorological Society says a 4-12 week period of dryness fits the definition of a flash drought. A flash drought is an “unusually rapid onset drought characterized by a multi-week timeframe of accelerated intensification that impacts one or more sectors of the U.S., including agriculture. Rippey also says the area around Chicago is going through a flash drought. Data shows the Chicago area is headed for its second-driest May in history. The likely rainfall total for the Chicago area is just .42 of an inch. Rippey says 26 percent of corn acres, 36 percent of cotton, 20 percent of soybeans, and 47 percent of wheat are in some level of drought.
| Rural Advocate News | Wednesday May 31, 2023 |
Wednesday Watch List Markets The Federal Reserve's Beige Book will be released at 1 p.m. CDT. There are no other significant reports Wednesday. Traders will continue to monitor the latest weather forecasts and follow progress on the proposal in Congress to raise the debt ceiling. Weather As has been the pattern lately, showers and thunderstorms are expected to develop in the Plains for yet another day. However, we should see showers and thunderstorms developing in the western half of the Midwest as well. Models are all over the place with placement and intensity, but some heavier rain should be expected, which could lead to some flooding in spots. Severe weather cannot be ruled out either, especially over west Texas.
| Rural Advocate News | Tuesday May 30, 2023 |
More Reaction to Supreme Court’s WOTUS Decision U.S. agriculture groups continue reacting positively to the Supreme Court’s unanimous ruling in the Sackett vs. EPA case that rejected the Biden Administration’s WOTUS definition. “Cattle producers can breathe a sigh of relief,” says National Cattlemen’s Beef Association President Todd Wilkinson. “This decision refocuses the Clean Water Act on protecting our water through regulatory clarity.” The Fertilizer Institute also welcomed the decision. “The decision to strike down the ‘significant nexus’ test is a win for agriculture,” says TFI President and CEO Corey Rosenbusch. “This is a great first step to needed clarity for the fertilizer industry’s long-term planning and capital investments that will allow us to keep providing critical crop nutrients.” The National Pork Producers Council called the decision a “tremendous victory” for pork producers. “This ruling is a clear punctuation point after decades of attempts to expand the federal government’s control of private land,” says NPPC Vice President Duane Stateler. *********************************************************************************** Report Released Showing Crop Insurance Impact by State Crop insurance is the cornerstone of America’s farm safety net and supports the rural economy and America’s national food security. National Crop Insurance Services has assembled several fact sheets highlighting the importance of agriculture and demonstrating how crop insurance keeps America growing. For example, crop insurance protects more than 490 million acres of U.S. farmland. It covers 136 crops and 604 varieties with 36 different insurance plans. Crop insurance does require farmers to invest in their own protection and share the risk. Last year, farmers paid $6.8 billion to buy more than 1.2 million crop insurance policies. The public-private partnership between the federal government and private crop insurers ensures that aid is delivered quickly, usually within 30 days of a claim being finalized. As if that’s not enough, the number of Americans who benefit from a bountiful supply of domestically-produced food totals 336 million. The state-by-state breakdown is available at cropinsuranceinmystate.org. *********************************************************************************** BLM Holds Information Session on New Rule The Bureau of Land Management hosted the first in a series of three informational sessions on a new agency proposal to broaden its conservation efforts. The draft Conservation and Landscape Health Rule would overhaul a variety of existing land management procedures at BLM. The changes would give it clearer authority to prioritize the health and resilience of ecosystems across almost 250 million acres of federally-owned land. Agency officials and supporters of the rule say it would place conservation and outdoor recreation on level ground with industrial uses like ranching and oil and gas drilling that BLM has facilitated for many years. Opponents and their Republican allies say it will likely curb those uses as much of the rule revolves around “conservation leases.” It’s a new mechanism that would protect certain areas from development for up to ten years. And those leases would be proposed by environmental non-profits or other applicants. *********************************************************************************** H-2A Visa Use Increased Dramatically During the Last Decade According to numbers from the U.S. Labor Department, more than 378,000 workers were authorized for H-2A visas for temporary agriculture positions. The number was less than a third of that as recently as 2012. Farmer Mac says that trend is going to continue for some time. “In the short run, I expect that growth to continue as long as pressure remains on labor markets,” says Jackson Takach, the chief economist with Farmer Mac. Back in 2012, the Labor Department said just 103,000 workers entered the U.S. through the H-2A program. H-2A workers are most heavily utilized in states like California and Florida because fruits and vegetables require more manual labor. However, those workers are also vital for agriculture in the Midwest and Great Plains. Iowa tops the list of states with the most H-2A workers in the Central U.S. Iowa was followed by Minnesota and North Dakota on the list. *********************************************************************************** Legislation on Easing Supply Chain Challenges Advances in the House Several industry trade groups say a number of trucking bills passed by the House Transportation and Infrastructure Committee are a step in the right direction. Food Navigator says the bills should help to further repair and reinforce America’s fragile food supply chains threatened by a severe shortage of drivers. Almost three-fourths of all goods in America’s economy, including all foods sold in grocery stores, get moved by the trucking industry. The bipartisan legislation would reduce the “empty miles” that trucks have to travel by allowing them to increase the weight they carry with an additional axle. A bill from Dusty Johnson (R-SD) would establish a voluntary ten-year pilot program allowing states to increase the weight of six-axle vehicles on federal interstates up to 91,000 pounds. Supporters say increasing the amount of weight trucks can carry would lower greenhouse gas emissions, ease supply chain backlogs, and reduce the number of “empty miles.” *********************************************************************************** Weekly Soybean Sales Rise, Corn and Wheat Drop The USDA says soybean export sales rose during the week ending on May 19, while cancelations of corn and wheat orders from overseas customers resulted in net reductions. Soybean sales rose to 115,000 metric tons during the week, up from the prior week but down 26 percent from the previous five-year average. Germany was the top customer at almost 58,000 metric tons, while Japan bought 53,500 tons. Cancelations of corn orders resulted in a net drop of 75,200 metric tons during the week. However, that’s still better than the net reduction of 339,000 during the prior week. Mexico was the top corn buyer at 216,000 metric tons. But China canceled shipments of almost 332,000 metric tons. Wheat cancelations resulted in net reductions of 45,100 metric tons, the lowest level since the marketing year began. China bought 68,000 tons of wheat while Nigeria took in almost 16,000. Japan canceled shipments totaling 63,000 metric tons.
| Rural Advocate News | Tuesday May 30, 2023 |
Tuesday Watch List Markets Back from the three-day weekend, trading in grains resumes at 7 p.m. CDT Monday evening. Traders will catch up with the latest weather forecasts and see the House is expected to vote on a debt ceiling compromise Wednesday. USDA's weekly report of export inspections is set for 10 a.m., followed by USDA's Crop Progress report at 3 p.m. Weather After a long holiday weekend of widespread showers and thunderstorms for much of the Plains, that general area will again be alight with more rain on Tuesday. Some areas of showers and thunderstorms are also forecast for the northwestern Midwest. Other showers and thunderstorms are forecast in parts of the Midwest, Delta, and Southeast, but at a very isolated coverage pattern.
| Rural Advocate News | Friday May 26, 2023 |
AFBF: Supreme Court Reaffirms Clean Water Rule The Supreme Court Thursday ruled against the Environmental Protection Agency in the case Sackett vs. EPA regarding the Biden administration's Waters of the U.S. rule. The court stated that wetlands under the jurisdiction of the Clean Water Act must have a continuous surface connection to bodies of water, making it difficult to determine where the water ends, and the wetland begins. American Farm Bureau Federation President Zippy Duvall responded, "The justices respect private property rights. It's now time for the Biden administration to do the same and rewrite the Waters of the United States Rule." Representative Dan Newhouse, a Washington state Republican and Congressional Western Caucus Chairman, says, “This landmark decision from the Supreme Court is a clear demonstration of our nation’s commitment to upholding the principles of individual property rights.” Agricultural Retailers Association President and CEO Daren Coppock added, “The decision finally restores common sense back into WOTUS regulation.” *********************************************************************************** Japan Trade Agreement Projected to Grow U.S. Pork Exports Japan’s pork imports are estimated to increase to more than $6 billion over the next five years, according to USDA’s Economic Research Service. Growth is supported by trade agreements Japan ratified between 2018 and 2021 with its major pork suppliers, including the United States, the European Union, and the ten countries party to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. These agreements mandate reductions in Japan’s trade barriers on pork imports. A recent report from USDA estimates these trade agreements will boost 2028 exports to Japan from the United States, EU, and CPTPP countries to totals of $2.08 billion, $2.04 billion, and $2.03 billion, respectively. For the United States, this is a large gain compared with a scenario in which the U.S.-Japan Trade Agreement did not exist. Under that scenario, U.S. pork exports to Japan would have totaled $1.41 billion, and EU and CPTPP countries would have gained market share at the expense of the United States. *********************************************************************************** Drought Monitor: Southern Plains See Drought Relief The Southern Plains saw drought relief over the last week, according to the latest Drought Monitor released Thursday. Still, much of the rain arrived too late to rescue winter wheat, though rangeland, pastures, and summer crops greatly benefited from the soil moisture improvements. In Texas, rangeland and pastures rated in very poor to poor condition by the Department of Agriculture improved from 51 to 36 percent during the week ending May 21. On the same date, topsoil moisture was rated less than one-third very short to short in Texas and Oklahoma. Still, despite abundant showers and thunderstorms, pockets of extreme to exceptional drought persisted in western and central Texas and across the northwestern half of Oklahoma. Farther east, most areas remained free of dryness and drought, aside from a few areas in the central Gulf Coast. Meanwhile, variable rainfall extended westward into the central and southern Rockies and eastward to the southern Atlantic Coast. *********************************************************************************** Lab-Grown Meat Carbon Footprint Potentially Greater than Retail Beef A new report suggests lab-grown meat may have a larger carbon footprint than retail beef. Researchers at the University of California-Davis found that lab-grown or "cultivated" meat's environmental impact is likely to be "orders of magnitude" higher than retail beef based. Researchers conducted a life-cycle assessment of the energy needed and greenhouse gases emitted in all stages of production and compared that with beef. One of the current challenges with lab-grown meat is the use of highly refined or purified growth media, the ingredients needed to help animal cells multiply. The study found that the global warming potential of lab-based meat using these purified media is four to 25 times greater than the average for retail beef. Even the most efficient beef production systems reviewed in the study outperform cultured meat across all scenarios, suggesting investments to advance more climate-friendly beef production may yield greater reductions in emissions more quickly than investments in cultured meat. *********************************************************************************** Program Pays Illinois Farmers to Improve Soil Health American Farmland Trust and ADM are launching the next season of a program that supports Illinois’s farmers and the environment. The Illinois re:generations program encourages farmers to incorporate environmentally friendly practices into their operations while offering financial incentives. The program is an expanded version of the 2022 Illinois Cover Crop Initiative and offers flexible contracts to farmers willing to adopt cover crops and/or provide data to calculate carbon intensity scores. The program provides payments to farmers who enroll in the program, and carbon assets generated from participation are being claimed by ADM. Farmers can enroll acres where practices have previously been used and choose from one to four year contracts. In 2023, farmers throughout the state can enroll for the cover crop incentive, and farmers delivering corn and beans to an ADM elevator can qualify for emissions-scoring payments. Enrollment for the 2023 program launches in June. *********************************************************************************** Legislation Addresses Housing Shortage in Rural Communities Lawmakers this week introduced the Forest Service Flexible Housing Partnerships Act to help address the housing shortage in rural and mountain communities. The bipartisan legislation would strengthen the authority of the United States Forest Service to lease underutilized administrative sites to address local needs, including for building affordable housing. Senator Michael Bennet, a Colorado Democrat, introduced the legislation. Bennet says, “This bill will build on our efforts in the 2018 Farm Bill to help communities and the Forest Service work together to build more affordable housing.” The 2018 Farm Bill secured the authority for the Forest Service to lease underused administrative sites to localities in exchange for in-kind contributions, including housing construction and improvement or maintenance of federal facilities. As a result of the housing crisis in the West, the Forest Service currently experiences a severe staffing shortage. The legislation will also help the agency provide housing for its firefighters and other critical positions to better serve the communities they work for.
| Rural Advocate News | Friday May 26, 2023 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the PCE index for April will be out, the Fed's favorite inflation indicator. We'll also see reports on April durable goods orders, personal incomes and consumer spending. The University of Michigan's index of U.S. consumer sentiment for May follows at 9 a.m. Traders will continue to monitor the latest weather forecasts and news of grain shipments out of the Black Sea. Weather Showers and thunderstorms that have been persistent in Montana and the southwestern Plains are forecast to spread through more of the Plains on Friday. Heavy rain and some severe weather are possible. Most of the Corn Belt stays dry today, with some growing concern over dryness through the Midwest.
| Rural Advocate News | Thursday May 25, 2023 |
Supreme Court Sides With Sacketts in Clean Water Act Case The Supreme Court sided with two Idaho property owners in their ongoing wetlands dispute with EPA on Thursday, ruling EPA's use of the significant nexus test when making Clean Water Act determinations is too broad. In writing the 5-4 majority opinion, Justice Samuel Alito said EPA has misinterpreted the Clean Water Act's reach when it comes to the property owned by Michael and Chantell Sackett and that the term significant nexus isn't found in the Clean Water Act. "In sum, we hold that the CWA extends to only those 'wetlands with a continuous surface connection to bodies that are 'waters of the United States' in their own right,' so that they are 'indistinguishable' from those waters," Alito said in his opinion. "This holding compels reversal here. The wetlands on the Sacketts' property are distinguishable from any possibly covered waters." The ruling will naturally lead to lower courts examining how the decision applies to the Biden administration's definition of "waters of the U.S." that right now is under court injunctions in at least 26 states tied to two separate courts. The American Farm Bureau Federation praised the Supreme Court decision, stating EPA "clearly overstepped its authority under the Clean Water Act by restricting private property owners from developing their land despite being far from the nearest navigable water." Zippy Duvall, president of AFBF, then called on the Biden administration to rewrite its waters of the U.S. rule. "Farmers and ranchers share the goal of protecting the resources they're entrusted with, but they deserve a rule that provides clarity and doesn't require a team of attorneys to properly care for their land," Duvall said. EPA Administrator Michael Regan expressed disappointment in the court ruling, stating the Supreme Court decision "erodes longstanding clean water protections." Regan added, "The Biden-Harris Administration has worked to establish a durable definition of 'waters of the United States' that safeguards our nation's waters, strengthens economic opportunity, and protects people's health while providing the clarity and certainty that farmers, ranchers, and landowners deserve. These goals will continue to guide the agency forward as we carefully review the Supreme Court decision and consider next steps." The Sacketts have been battling EPA since 2007 for the right to build on land the agency has deemed to be a wetland. Their property sits on a lakefront and they've argued that there is no surface connection between the lake and their land. Alito said in the majority opinion that the Clean Water Act's reach is far narrower than EPA has opined. "The EPA, however, offers only a passing attempt to square its interpretation with the text and its 'significant nexus' theory is particularly implausible," Alito writes. He said the definition of waters of the U.S. is more limited. "And, in any event, the CWA never mentions the 'significant nexus' test, so the EPA has no statutory basis to impose it," Alito stated. One environmental group characterized the court's decision as 'stripping out key protections' from the Clean Water Act. Manish Bapna, president and CEO of the Natural Resources Defense Council, said in a statement to DTN that the court "ripped the heart" out of the law. "The majority chose to protect polluters at the expense of healthy wetlands and waterways," Bapna said. "This decision will cause incalculable harm. Communities across the country will pay the price." The agency's use of the significant-nexus standard has been at the heart of opposition from agriculture and other industries to recent iterations of the waters of the U.S. rule. The standard essentially allows the EPA and the U.S. Army Corps of Engineers to determine waters are covered by the law if there is a chemical connection to larger navigable water bodies. The Sacketts have filed many appeals on the EPA decision in the past 15 years. The U.S. Court of Appeals for the Ninth Circuit had sided with EPA's wetland assessment on the Sacketts' property. The court's ruling sends the appeals court decision back to the court for reconsideration. Alito said in the majority opinion that EPA's interpretation of the law "gives rise to serious vagueness concerns in light of the CWA's criminal penalties." "Due process requires Congress to define penal statutes 'with sufficient definiteness that ordinary people can understand what conduct is prohibited'," Alito writes, "and 'in a manner that does not encourage arbitrary and discriminatory enforcement.' Yet the meaning of 'waters of the United States' under the EPA's interpretation remains hopelessly indeterminate. "The EPA contends that the only thing preventing it from interpreting 'waters of the United States' to 'conceivably cover literally every body of water in the country' is the significant-nexus test." Alito's ruling noted in defining "waters of the U.S.," the court revisits what has been "a contentious and difficult task." Alito said the phrase "waters of the U.S." has sparked decades of EPA action and litigation. The boundary between "significant" and insignificant is far from clear, Alito wrote. EPA argued that "waters" also includes wetlands. But Alito points to the presence of puddles and also noted in an earlier decision that ponds are not considered part of waters of the U.S. Alito went into an extensive writing about where wetlands fall in the CWA. Justice Brett Kavanaugh concurs in his opinion but said that the "wetlands with a continuous surface connection to bodies that are 'waters of the United States' in their own right so that they are "indistinguishable" from those waters." Kavanaugh wrote that he agreed the Sacketts' property should not have been covered under the Clean Water Act, but he said the majority ruling goes too far in removing the significant nexus test. The court's new "continuous surface connection" goes against 45 years of consistent agency practice and court precedents, Kavanaugh wrote. "By narrowing the act's coverage of wetlands to only adjoining wetlands, the court's new test will leave some long-regulated adjacent wetlands no longer covered by the Clean Water Act, with significant repercussions for water quality and flood control throughout the United States."
| Rural Advocate News | Thursday May 25, 2023 |
Iowa Cash Rents Hit Highest Average Value on Record The recent yearly survey of Iowa’s cash rental rates for farmland shows rates jumped by nine percent so far in 2023. The average is now $279 per acre, the highest average value on record. This new peak rate is three percent higher than the previous high of $270 in 2013. By way of comparison, average nominal (not inflation-adjusted) corn and soybean prices paid to farmers in the first quarter of this year were 2.8 percent higher and 4.4 percent lower, respectively, than in the first quarter of 2013. Of the usable responses to the Iowa State University Extension survey, 42 percent came from farmers, 37 percent from landowners, nine percent from professional farm managers and realtors, and seven percent came from ag lenders. The survey showed considerable variability across counties in year-to-year changes, typical of these surveys. A total of 91 out of 99 counties showed higher rents for corn and soybeans. *********************************************************************************** Ribbon Cutting on National Bio and Agro-Defense Facility USDA and the Department of Homeland Security celebrated the dedication and ribbon-cutting of the National Bio and Agro-Defense Facility in Manhattan, Kansas. This facility is the first of its kind in the U.S. It offers the highest level of bio-containment laboratories and safety protocols and will allow scientists to study and diagnose critical animal diseases. “America’s farmers, ranchers, and consumers count on our researchers to understand, monitor for, and develop solutions to combat a variety of high-consequence animal pathogens,” says Ag Secretary Tom Vilsack. A facility of this magnitude positions us to respond.” The valuable scientific information delivered by researchers at NBAF will also allow America to remain a leading contributor of countermeasures that will protect agriculture, economies, and citizens across the globe. A USDA news release also says it’s a historic investment for agriculture and our nation in ensuring the health, safety, and security of the U.S. food supply. *********************************************************************************** EPA to Recommend Delaying Electric Vehicles Biofuel Program The Environmental Protection Agency will recommend delaying a program that would allow electric vehicle manufacturers to access tradeable credits under the Renewable Fuel Standard. Two sources told Reuters that the White House will review the EPA’s final rule. The plan would have given EV automakers credits for charging vehicles using power generated from natural gas or methane. The threat of potential lawsuits also could have played a part in the postponement. The initial proposal last November could have generated as much as 600 million tradeable credits in 2024 and 1.2 billion in 2025. Prices for equivalent biofuel credits have recently traded over $2 each. The two sources also say the Biden Administration is still hoping to pass a final rule on the EV program before the end of 2023, even if it gets uncoupled from the yearly blending mandates. Biden is boosting the EV industry in an effort to reduce carbon emissions. *********************************************************************************** China Opposes U.S. Trade Agreement with Taiwan China had a lot to say about the recent trade agreement between the U.S. and Taiwan. Saltwire.com says China’s Ministry of Commerce urged the U.S. to “carefully handle economic and trade relations with Taiwan.” The U.S. Trade Representative’s Office recently announced that the U.S. and Taiwan reached an agreement on the first part of their 21st Century trade initiative. The agreement covers customs and trade facilitation, regulatory practices, and small businesses. The pact is not expected to alter goods tariffs, but supporters say it will tighten economic bonds between the two nations and open up the Chinese-claimed island to more U.S. exports. It will also improve the ability of the island nation to resist Chinese economic coercion. China reacted angrily to the Taiwan president’s recent meetings with high-level U.S. officials, including Speaker of the House Kevin McCarthy. The announcement came just ahead of trade meetings between the U.S. and China. *********************************************************************************** USDA Wants Input on Prevented Planting Crop Insurance Coverage The USDA published a Request for Information announcing public listening sessions and soliciting public comments on possible changes to prevent planting crop insurance coverage. In addition to the written public comment period, the Risk Management Agency will hold in-person and virtual listening sessions from June through August. “We truly care about what our customers, the nation’s agricultural producers, have to say,” says RMA Administrator Marcia Bunger. “That’s why we’re hosting listening sessions in 11 states in addition to accepting written comments.” The request for information is looking for input on the harvest price option, the “1 in 4” Rule, the ten percent additional coverage option, the contract prices, as well as general information on farmers’ willingness to pay additional premiums for expanded prevented planting benefits. They also want recommendations on other potential prevent planting limitations. Additional details on the listening sessions, including the schedule, are available on the RMA website. *********************************************************************************** Soy Innovation Challenge Winner’s New Approach to Soy Meal Processing The United Soybean Board announced Satavie is the winner of the 2023 Soy Innovation Challenge. The Challenge called on entrepreneurs, innovators, startups, and research teams to bring new ways to advance the use of soybean meal and demand in existing markets. Satavie was selected as the winner out of 80 applicants from around the world. The company has a unique approach to extracting concentrated soy protein from soybean meal. Their new method ensures high levels of digestibility, improved nutrient absorption, and increased feed conversion rates that are ideal for swine, poultry, and aquaculture feed. As the winner of the contest, the company gets $100,000 from the United Soybean Board and $5,000 of in-kind technical services and credits from Amazon Web Services. The company’s president says the impact on the soy industry will be enormous. Their water extraction patented technique leads to better health outcomes, overall growth, and improved meat quality.
| Rural Advocate News | Thursday May 25, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, a new estimate of first-quarter U.S. GDP and an update of the U.S. Drought Monitor. More reports follow with U.S. pending home sales in April at 9 a.m. and natural gas storage at 9:30 a.m. Traders remain attentive to changes in weather. Weather Yet another day of isolated to scattered showers are expected in the Plains, being heaviest in parts of the drought across the southwest. Additional strings of showers and thunderstorms are expected for the Northern Plains into the Canadian Prairies as well. Outside of some cool temperatures across the Midwest, it remains rather warm as well.
| Rural Advocate News | Wednesday May 24, 2023 |
Last Chance to Complete the 2022 Census of Agriculture USDA’s National Agricultural Statistics Service will end data collection for the 2022 Census of Agriculture on May 31. Producers who have not yet returned their completed questionnaires have just one week left to respond. Federal law requires everyone who received the ag census to complete and return it. Recipients can respond online at agcounts.usda.gov or by mail. NASS Administrator Hubert Hamer says, “Not being represented in these widely used data means risking being underserved.” USDA NASS is reminding ag census recipients that if they produced and sold $1,000 or more of agricultural product in 2022, or normally would have produced and sold that much, they meet USDA’s definition of a farm. However, landowners who lease land to producers, those solely involved in conservation programs, and even those who may not have farmed in 2022 are still required to respond. USDA will release the results in 2024. To learn more about the Census of Agriculture, visit nass.usda.gov/AgCensus. *********************************************************************************** NIFA Helps Veterinary Medical Students Repay Loans USDA's National Institute of Food and Agriculture helped 89 food animal veterinary practitioners with loan repayments from the Veterinary Medicine Loan Repayment Program in 2022. NIFA reported this week that the 89 students from 28 American Veterinary Medical Association accredited Colleges received nearly $9 million in loan repayment benefits. The program up to $75,000 in loan repayment over a three-year period to help eligible veterinarians offset a significant portion of the debt incurred in pursuit of their veterinary medical degrees in return for their service in certain high-priority veterinary shortage situations. Funding is authorized by the National Veterinary Medical Services Act. NIFA National Program Leader Bob Smith says, "Award recipients regularly tell us that they wouldn't be able to serve these areas without this support." The program helps address the critical shortage of food animal veterinarians in both private and public practice, particularly in rural communities in the United States. *********************************************************************************** Eating Patterns Differ from Federal Recommendations U.S. consumers’ eating patterns differ from Federal recommendations for many food categories, and where food is obtained plays a role. Researchers from USDA’s Economic Research Service examined diet patterns based on density—amounts of food consumed per 1,000 calories—using the latest available national food consumption data. They compared the average consumption densities of 17 food categories with what would be needed to match the Dietary Guidelines for Americans recommendations, assuming a 2,000-calorie intake. Average total consumption densities for 11 food categories fell more than 20 percent outside of recommended levels, with whole grains more than 70 percent below the recommended amount. Refined grains, on the other hand, had a consumption density of more than 85 percent above the recommended level. Densities of six food categories were within 20 percent of the recommended range. Generally, food purchased at grocery stores, supermarkets, and similar retailers for home preparation had consumption densities more in line with dietary recommendations than food obtained from commercial away-from-home sources. *********************************************************************************** USDA, University of Kentucky Break Ground on New Forage Research Building Agriculture Secretary Tom Vilsack Tuesday participated in a groundbreaking ceremony for a new research facility, known as the Forage-Animal Production Research Unit. The University of Kentucky's College of Agriculture, Food and the Environment will host the new facility. Vilsack says, “Today’s groundbreaking builds on more than two decades of partnership with the University of Kentucky, while demonstrating USDA’s latest commitment to pushing the boundaries of what is possible for agriculture.” Upon completion, targeted for 2026, the new facility will encompass approximately 52,600 total square feet of office, supporting a research laboratory space, as well as a collaborative area, headhouse and eight-bay greenhouses. It will be staffed by six Agricultural Research Service scientists, seven university researchers, laboratory technicians, and administrative personnel. Earlier this month, USDA released a three-year science and research strategy, which establishes a scientific framework to transform the U.S. food system and support our nation's farmers, ranchers, producers and foresters. *********************************************************************************** The Alltech ONE World Tour begins in Budapest Central Europe's agriculture producers will play a major role in addressing climate and food supply challenges around the world. The region's agri-food leaders discussed collaborative solutions and strategies for success today in Budapest, Hungary, at the first stop of the Alltech ONE World Tour. The event launches a series of international stops that bring the ideas and inspiration of the annual Alltech ONE Conference to the world. Discussions explored collaborative solutions to the greatest challenges facing the agri-food industry as it confronts the "4 Cs" — the major forces of climate, conflict, consumer trends and rising costs. Alltech president and CEO Dr. Mark Lyons says, "In times of uncertainty, it is crucial for businesses like ours to adapt and innovate." The Alltech ONE World Tour will continue with stops in Dublin, Ireland, on June 19–20 and Calgary, Canada, on July 3–4, then on to the U.S., Asia, South America and the Middle East. For more information and to register for an Alltech ONE World Tour stop, visit one.alltech.com. *********************************************************************************** Ford to Keep AM Radio in New Vehicles Ford CEO Jim Farley announced on Twitter Tuesday that the company would include AM radio as part of all newly manufactured vehicles in 2024. Farley says, “After speaking with policy leaders about the importance of AM broadcast radio as a part of the emergency alert system, we've decided to include it on all 2024 Ford and Lincoln vehicles.” Any owners of a Ford electric vehicle without AM broadcast capability will be offered the capability through a software update, according to the company. The reversal follows action by lawmakers who introduced the AM for Every Vehicle Act last week, and opposition by broadcast associations. The National Association of Broadcasters, in a statement responded, "In light of Ford's announcement, NAB urges other automakers who have removed AM radio from their vehicles to follow Ford's lead." The AM for Every Vehicle Act cited the importance of keeping communities informed during emergencies, particularly rural communities with a lack of other information resources.
| Rural Advocate News | Wednesday May 24, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly report of energy inventories, including ethanol production, is due out at 9:30 a.m. CDT. Minutes from the latest FOMC meeting are out at 1 p.m., followed by USDA's monthly cold storage report at 2 p.m. Traders continue to pay attention to the latest weather developments, news regarding Black Sea grain movement and talks surrounding the debt ceiling. Weather The Plains continue to be a focus for showers, especially across the southern drought areas where moderate to heavy rain has developed this week and continues Wednesday. An additional zone from Montana through Saskatchewan is also producing more consistent showers and thunderstorms. Other isolated showers will dot the rest of the Plains and Southeast as well.
| Rural Advocate News | Tuesday May 23, 2023 |
USDA to Bring Jobs and Improved Infrastructure to Rural Partners Network The Department of Agriculture Monday announced an effort to help rural communities to address some of their immediate needs and foster long-term economic growth. USDA is providing loans and grants to help people living in rural and Tribal communities in the Rural Partners Network access good-paying jobs, improved infrastructure, affordable housing and quality health care. The funding will support 52 projects in Alaska, Arizona, Georgia, Kentucky, Mississippi, New Mexico, North Carolina, West Virginia and Puerto Rico. In the West, the funding will help Tribal communities improve water and wastewater services and bring solar power and other forms of renewable energy to Tribal lands and farms. For people in Southern communities, projects will increase access to fresh foods in high-poverty areas and allow electric cooperatives to connect thousands of people to power with smart-grid technologies. The announcement includes $394 million in awards from USDA that will benefit communities and support their long-term visions for strong, local economies. *********************************************************************************** New Right to Repair MOUs Bring Industry Coverage to 70% The American Farm Bureau Federation signed two more memoranda of understanding with two agricultural equipment manufacturers. The new MOUs were signed by AGCO and Kubota, providing farmers and ranchers the right to repair their own farm equipment. The MOUs, negotiated independently with each manufacturer, follow similar agreements AFBF entered into with John Deere and CNH Industrial Brands earlier this year. The four MOUs cover roughly 70 percent of the agricultural machinery sold in the United States. AFBF President Zippy Duvall says, “These agreements represent ongoing efforts to ensure farmers have access to the tools necessary to keep their equipment running.” The MOUs set a framework for farmers and independent repair facilities in all 50 U.S. states and Puerto Rico to access AGCO and Kubota manuals, tools, product guides and information to self-diagnose and self-repair machines, as well as support from the manufacturers to directly purchase or lease diagnostic tools and order products and parts. *********************************************************************************** Atypical BSE Case Detected in South Carolina USDA’s Animal and Plant Health Inspection Service last week announced the finding of an atypical case of Bovine Spongiform Encephalopathy (in-sef-o-lop-athy). The approximately five-year-old or older beef cow tested positive following routine surveillance protocols at a slaughterhouse in South Carolina. The animal possessed a radio frequency identification tag associated with a herd in Tennessee. USDA APHIS and state animal health officials will conduct a thorough investigation of the case. Atypical BSE cases occur rarely and spontaneously, often in older cattle. This is only the nation's 7th case of atypical BSE, following a previous incident in 2018. This is the nation’s 7th detection of BSE. Of the six previous U.S. cases, the first, in 2003, was a case of classical BSE in a cow imported from Canada; the rest have been atypical. U.S. Cattlemen's Association president Justin Tupper responded, “This animal never entered slaughter channels and at no time entered the food supply chain due to the effectiveness of the surveillance team.” *********************************************************************************** Data Shows Few Farm Estates Must File Estate Tax Return New data from USDA's Economic Research Service shows that less than one percent of farm estates created in 2022 must file an estate tax return. Created in 1916, the federal estate tax is a tax on the transfer of property to a person's heirs upon death. In 2022, the Federal estate tax exemption amount was $12.06 million per person, and the federal estate tax rate was 40 percent. Under the present law, the estate of a person who owns assets above the exemption amount at death must file a federal estate tax return. However, only returns with an estate above the exemption after deductions for expenses, debts, and bequests will pay federal estate tax. Researchers estimate that in 2022, 39,500 estates were created from principal operator deaths. Of those estates, ERS forecasts that 305, or 0.77 percent, will be required to file an estate tax return, and a further 87, or 0.22 percent, will likely owe Federal estate tax. *********************************************************************************** USDA Offers Assistance to Help Organic Dairy Producers The Department of Agriculture recently announced assistance for dairy producers with the new Organic Dairy Marketing Assistance Program/ The program helps dairy producers mitigate market volatility, higher input and transportation costs, and unstable feed supply and prices that have created unique hardships in the organic dairy industry. USDA’s Farm Service Agency is offering $104 million in grants to dairy operations to assist with projected marketing costs in 2023, calculated using their marketing costs in 2022. Organic dairy producers have faced significant and unique increases in their marketing costs, compounded by increases in feed and transportation costs and the limited availability of organic grain and forage commodities. FSA Administrator Zach Ducheneaux says, “Without assistance, many organic dairies, particularly small organic dairies, will cease production.” FSA will begin accepting applications for the program on May 24, 2023. Eligible producers include certified organic dairy operations that produce milk from cows, goats and sheep. *********************************************************************************** Gas Prices Steady Heading into Holiday Weekend As Americans gear up for the start of the summer driving season with Memorial Day weekend, the nation's average price of gasoline is unchanged from a week ago at $3.51 per gallon. The national average diesel price fell 3.2 cents last week and stands at $3.94 per gallon. GasBuddy's Patrick De Haan says, “We’ve seen more states see prices climb than fall, which has been driven by oil’s volatility as debt ceiling discussions are ongoing.” De Haan expects prices to rise slightly this week, especially if there are positive developments in the debt ceiling discussions. With continued discussions about reaching a bipartisan agreement to raise the nation’s debt limit, the price of oil has remained somewhat volatile, given the economic repercussions that come with the situation. U.S. retail gasoline demand saw a rise of 1.1 percent last week, and the most common U.S. gas price was 3.39 per gallon, up ten cents from last week.
| Rural Advocate News | Tuesday May 23, 2023 |
Tuesday Watch List Markets A report on U.S. new home sales for April is set for 9 a.m. Traders will keep watch on the latest weather forecasts and digest Monday afternoon's Crop Progress reports. Weather A weak system continues to bring showers to the Southeast Tuesday. Isolated to scattered showers will continue across the Plains and Canadian Prairies as well, being heaviest and most widespread across parts of Alberta. Showers across the southwestern Plains will continue to ease drought conditions.
| Rural Advocate News | Monday May 22, 2023 |
Winter Wheat Harvest Finds Disappointing Yields The 2023 Wheat Quality Council’s Winter Wheat Tour wrapped up last week with disappointing numbers. After scouting for three days, the tour calculated an average yield of 30 bushels per acre. While an estimated 8.1 million acres of wheat were planted last fall, the winter wheat crop has suffered from a multi-year drought that cut yields and resulted in abandoned fields in Kansas, Nebraska, and Oklahoma. The official tour projection for the total production of wheat to be harvested in Kansas is 178 million bushels. Kansas Wheat says that number shows tour participants thought abandonment might be quite a bit higher than normal at almost 27 percent. The production number is the average of estimated predictions from tour participants who scouted 652 fields across the area. Based on May 1 conditions, NASS predicted the crop to be 191 million bushels, a yield of 29 bushels per acre, and abandonment at 18.5 percent. *********************************************************************************** Updates Begin on Improving Mississippi River Infrastructure The Army Corps of Engineers held a groundbreaking ceremony marking the beginning of repairs to a lock and dam on the Upper Mississippi River that’s crucial to shipping corn and other commodities. Lock and Dam 25, almost 50 miles north of St. Louis, hasn’t been extensively repaired since it was constructed in the early 20th century. Funding for the project was included in the Infrastructure Investment and Jobs Act. The Illinois Corn Growers Association, long at the forefront of advocating for updates to the Lock and Dam, applauded the development. “Our hope is this will be the beginning of a waterfall of infrastructure work on the Illinois and Mississippi Rivers,” says ICGA President Matt Rush. Lock and Dam 25 is crucially important to corn growers as 60 percent of corn and soybean exports are transported on the Mississippi River. The river is important in shipping products both domestically and abroad. *********************************************************************************** USDA Previews Emergency Relief for Agricultural Producers Ag Secretary Tom Vilsack plans to roll out $3.7 billion in Emergency Relief Program and Emergency Livestock Relief Program assistance to crop and livestock producers. The funds will help producers who sustained losses due to a qualifying natural disaster event during calendar year 2022. USDA is sharing the information early to allow producers time to gather documents in advance of program delivery. “U.S. ag producers nationwide endured crippling natural disaster events in 2022, including a mega-drought, hurricane, flooding, and wildfires,” Vilsack says. “While we have streamlined our delivery of natural disaster assistance, funding is limited and significantly less than the estimated losses.” He also says they’re designing payment factors to help as many producers as possible to offset the significant financial impacts resulting from these ongoing and widespread natural disasters. Producers who have participated in FSA programs likely have the required forms on file. Contact your local USDA Service Center with questions. *********************************************************************************** Senators Ask BLM to Withdraw Draft Rule South Dakota Senator Mike Rounds and 15 other senators sent a letter to the Bureau of Land Management asking them to withdraw the proposed Public Lands Rule. The bureau says this rule would let conservationists lease federal land. The senators say it’s intended to set conservation equal to other land uses. The proposal would negatively affect western states, including South Dakota because their economies rely on public land for cattle grazing, energy development, and tourism. “It’s clear that anti-grazing and anti-development organizations would abuse this tool to attempt to halt ranching and block access to our nation’s abundant energy reserves located on public lands,” the letter says. Supporters of this rule say land conservation is necessary to protect the environment. They argue that the rule will not impede current land uses. The BLM website says the bureau will host public meetings, virtually and in person, to discuss the proposed rule. *********************************************************************************** Bill Incentivizes Use of Cover Crops Senator Sherrod Brown (D-OH) and several state representatives introduced bipartisan legislation to incentivize farmers to plant cover crops to help boost environmental conservation. The Conservation Opportunity and Voluntary Environment Resilience Program (COVER) Act would provide farmers who plant cover crops a crop insurance discount of $5 per acre. It will also lower the long-term cost of crop insurance by making the Pandemic Cover Crop Program permanent, authorizing additional funding for technical assistance in accessing the Good Steward Cover Crop Program, and creating a Soil Health Pilot Program. “Farmers are the original conservationists.,” says Brown. “By utilizing cover crops, they can increase yield, decrease pesticide use, and reduce runoff into waterways, which is good for everyone.” Planting cover crops slows erosion, promotes soil health, improves water availability, suppresses weeds, attracts pollinators, helps control pests and diseases, and increases biodiversity. Cover crops increase yields and reduce crop insurance losses caused by prevented planting. *********************************************************************************** Beef Output Will Drop in 2024 U.S. beef production in 2024 will drop eight percent to 24.7 billion pounds amid tighter supplies of cattle. A USDA report says aggregate domestic beef disappearance will fall more than seven percent to 52.8 pounds per capita on a retail-equivalent basis. That’s the lowest level since record-keeping started in 1970. The declining output will push cattle prices to new highs in 2024. A “core portion” of the beef herd is still seeing drought conditions in the Southern Plains, despite improving conditions. That resulted in a shortage of hay. Inventories on May 1 dropped 13 percent year-over-year to the lowest point in a decade. Despite recent rains, for some producers, the very-low hay supplies may not offset poor pastures to sustain herds this summer and allow producers to retain breeding stock,” USDA says. “As a result, culling continues at a relatively high rate.” On a positive note, feed prices will likely decline.
| Rural Advocate News | Monday May 22, 2023 |
Top 5 Things to Watch - DTN Summit Event Tuesday, Dicamba Deadlines Loom OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of May 21. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Ag Summit Series: Our second DTN Ag Summit Series virtual event is May 23 at 8:30 a.m. CDT. You'll hear crop updates from farmers across the country, as well as learn the latest crop, fertilizer, weather and markets updates from DTN's formidable staff of reporters and analysts. Registration allows you to both watch the event live as well as view rebroadcasts if you missed a session, and you can share those rebroadcasts with others in your operation. 2. Will wheat stay bearish?: Wheat markets continue to take an anti-fundamentals drop. Tough to swallow following the 2023 Wheat Quality Council Hard Winter Wheat tour, which put expected wheat yields near lows not seen since President John F. Kennedy proclaimed, "Ich bin ein Berliner." That would be 1963, for those keeping score. Prices have many exclaiming "Was zur Holle," though our analysts note the current drop is due to speculator selloffs in the futures market. We'll be keeping tabs on all that through the week. 3. Continued drought reduction: We continue to watch the colors lighten on the weekly U.S. Drought Monitor map, and now also turn lighter on the latest Climate Prediction Center's U.S. Seasonal Drought Outlook map, thanks to continued precipitation systems the past few weeks. DTN Ag Meteorologist John Baranick notes that just over 20% of the Lower 48 states are currently in drought, the lowest level of drought conditions since June 2020. This week a ridge in the West moves east, and the weak trough behind it should bring showers to the High Plains, perhaps bringing even further drought reduction. Showers could stymie planting a little in the Dakotas, but overall crop progress should keep progressing. 4. Soybean head scratcher: Beans also have a lot of us scratching "die Kopfe." We'll watch for signs of any changes in the bean complex this week. 5. Herbicide deadlines loom: Early planted beans are running into a conflict with dicamba postemergence application rules in many states. The latest rules outlaw post application when beans reach V4 or June 12, whichever comes first. Many early planted fields will likely hit the size limit well ahead of the cutoff date. Watch for the details from DTN Crops Editor Jason Jenkins this week.
| Rural Advocate News | Monday May 22, 2023 |
Monday Watch List Markets Back from the weekend, traders will catch up on the latest weather forecasts and keep tabs on the latest crop comments. USDA's weekly report of export inspections is due out at 10 a.m. CDT, but more attention will turn to the latest reports of planting progress in USDA's 3 p.m. Crop Progress report. Weather A leftover front in the Southeast will bring scattered showers and potential for heavy rain to the Southeast on Monday and into Tuesday as well. Meanwhile, daily showers and thunderstorms will pop up for the Plains this week. For Monday, that targets Montana and the southwestern Plains areas and may fall over areas in deep drought not just Monday but throughout the week as well.
| Rural Advocate News | Friday May 19, 2023 |
Black Sea Grain Deal Extended Two Months The Black Sea grain deal has been extended for another two months, something the United Nations calls “good news for the world.” The news came one day before Russia could have quit the deal because of obstacles to its grain and fertilizer exports. Reuters says Turkey’s president made the announcement, later confirmed by Russia, Ukraine, and the U.N. Moscow was unwilling to extend the deal unless some demands regarding its own ag exports were met. While Russia’s ag exports of food and fertilizer aren’t directly affected by Western sanctions, restrictions on payments, logistics, and insurance are a barrier to shipments. Russia’s ambassador to the U.N. says the deal was extended because they haven’t lost hope that the problems raised by Russia will be resolved. The U.N. also says it hopes that exports of food and fertilizers, including ammonia, from Russia and Ukraine will get to global supply chains safely and predictably. *********************************************************************************** Opposition to House Ag Appropriations Bill The House Agriculture Committee’s Ag Appropriations Subcommittee passed its fiscal year 2024 agriculture funding bill. The National Farmers Union says the legislation includes harmful provisions that would prevent USDA from completing a long-awaited Packers and Stockyards Act rule to protect family farmers and ranchers from abuses of market power by the meat industry. “Our markets are heavily consolidated and ripe for manipulation,” says NFU President Rob Larew. Chris Gibbs, president of Rural Voices USA, a leading rural advocacy group, says it’s hard to watch lawmakers who largely represent rural communities gut funding that goes directly to those same rural communities. “By slashing USDA funding by one-third, the House GOP is showing how backward their priorities are,” Gibbs says. “Instead of allowing rural communities to play a meaningful role in industries of the future, this proposal will leave rural communities behind.” Both groups say rural communities cannot stay silent on proposals like this. *********************************************************************************** NPPC Outlines Industry Priorities During House Hearing Scott Hays, president of the National Pork Producers Council, testified before the House Ag Committee’s Subcommittee on Livestock, Dairy, and Poultry and talked about pork priorities. Hays presented policy priorities ranging from funding that supports programs to safeguard the nation’s food supply against the threat of foreign animal diseases to initiatives that expand foreign market access for U.S. agricultural products. Hays outlined the economic challenges facing pig farmers as hog prices have moderated significantly since 2022. Production costs have risen drastically, the industry faced trade retaliation, supply chain issues, labor shortages, and the unfavorable Supreme Court decision on Prop 12. “This is putting a pinch on the pork industry and could drive consolidation at the farm level as producers may be forced to exit the industry,” Hays says. Other priorities include a one-year extension of Livestock Mandatory Price Reporting, opposition to proposed changes to the Packers and Stockyards Act, and others. *********************************************************************************** Biofuels Must Be a Part of Climate Solutions Biofuels like ethanol must not be ignored as a climate solution. That was part of the testimony by Kansas Corn Growers CEO Josh Roe in front of a House Oversight Subcommittee hearing. The discussion centered on vehicle emissions rules and the electric vehicle transition. “Unfortunately, current and proposed EPA rules prevent us from being part of the solution,” says Roe. “While we believe electric vehicles will play a vital role in achieving climate goals, other complementary alternatives like biofuels have a key role to play but are being pushed aside.” Roe also questioned the EPA proposal that considers electric vehicles as zero emission. “They aren’t truly zero-emission vehicles,” he says. “While they don’t have a tailpipe, you still need to account for the emissions that come from the power grid.” The U.S. power grid is 60 percent powered by coal and natural gas, and EPA rules don’t account for upstream emissions. *********************************************************************************** NCBA Endorses Legislation Protecting Animal Health The National Cattlemen’s Beef Association announced its support the Foreign Animal Disease Prevention, Surveillance, and Rapid Response Act of 2023. The bipartisan legislation would continue making critical investments in foreign animal disease response programs currently overseen by USDA. “The threat of a foreign animal disease outbreak in the U.S. represents an existential threat to every cattle producer,” says NCBA President Todd Wilkinson. “As a cattle producer, it is reassuring to see bipartisan support for legislation like this, which will help our industry prepare for, and ultimately prevent a national crisis.” The Act will provide additional funding for three important animal health programs established through the 2018 Farm Bill, including the National Animal Vaccine and Veterinary Countermeasures Bank, the National Animal Disease Preparedness and Response Program, and the National Animal Health Laboratory Network. “Together, these three form a three-legged stool that represents our strategy for protecting the cattle and beef industries,” Wilkinson adds. *********************************************************************************** First Quarter Solid for Some Animal Product Exports A USDA report says a comparison between first-quarter 2023 exports of seven animal products with the exports from the same time last year shows some improvement. Four of the categories were year-over-year higher and three were lower so far during this year. In the first quarter of 2023, lamb and mutton exports were up 31 percent, pork was up eight percent, broilers 2.5 percent higher, and dairy product exports were six percent higher than in 2022. USDA says the increases were due mostly to favorable prices and the depreciating value of the dollar. Beef and veal exports were eight percent lower than last year because of lower U.S. production in cattle-producing areas hit by extended drought. Egg and egg-product shipments were 22 percent lower than last year, and turkey exports were 21 percent lower. Fewer egg and turkey shipments were caused by export restrictions related to high pathogenic avian influenza.
| Rural Advocate News | Friday May 19, 2023 |
Friday Watch List Markets With the 2023 Hard Winter Wheat Quality Tour wrapped up and the Black Sea grain deal extended for another two months, will we see a quieter grain market Friday? Traders will keep tabs on the latest weather forecasts, but are developing low expectations for export business. USDA's cattle on-feed report for May 1 is due out at 2 p.m. CDT and many expect the on-feed total to be down almost 4% from a year ago. Weather A front is found from the Central Plains through the central Midwest Friday morning, producing some scattered showers in the Midwest, but heavy rain in the Southern Plains. Morning showers will die out across the Plains but redevelop over the south later in the day, which may become severe. Across the Midwest, showers will be lighter. A brief shot of colder air and smoke from Canadian wildfires are following behind the front.
| Rural Advocate News | Thursday May 18, 2023 |
House Ag Spending Bill Released, Markup Thursday The House Agriculture Appropriations bill released this week provides $26.3 billion for total funding, $532 million below the 2023 funding level. The bill provides $17.1 billion to the Department of Agriculture, which is $8.6 billion below current fiscal year spending and $11.7 billion below the budget request. The bill also provides $8.1 billion in funding repurposed from unobligated balances from pandemic-era programs. Conservative leaders in the House say the bill reins in wasteful spending by redirecting billions in American Rescue Plan and Inflation Reduction Act funding to help America’s producers and rural communities. The changes include a $32 billion decrease in mandatory SNAP spending from FY23 levels due to the end of increased pandemic-era benefits and a decrease in participation rates. The proposal also eliminates funding for equity initiatives and climate change, and saves $1 billion by restricting the discretionary use of the Commodity Credit Corporation. The House Agriculture Appropriations Subcommittee was scheduled to markup the bill Thursday morning. *********************************************************************************** Legislation Introduced to Protect Farms from Feral Hogs Lawmakers this week in the Senate introduced the Feral Swine Eradication Act. The legislation would extend and make permanent a pilot program to safeguard public health, agriculture, and local ecosystems against the threat of feral swine. Senators Tommy Tuberville, an Alabama Republican and John Cornyn, A Texas Republican, introduced the bill. Tuberville says, "Over the past five years, feral swine have impacted more than 173,000 acres in Alabama, yet the pigs are still running rampant throughout the South." There are approximately six million feral hogs across the United States, which cause more than $1.5 billion in damages each year. The Feral Swine Eradication and Control Pilot Program was established in the 2018 Farm Bill to respond to rampant feral swine outbreaks and was implemented by the Department of Agriculture. The program includes feral swine removal, restoration efforts, and assistance to producers for feral swine control through grants with non-federal partners. *********************************************************************************** Senate Ag Committee Advances Torres Small Nomination The Senate Agriculture Committee Wednesday advanced the nomination of Xochitl Torres Small to be Deputy Secretary of Agriculture to the full Senate for consideration. Committee Chair Debbie Stabenow, a Michigan Democrat, says, " Ms. Torres Small has a proven track record and a wide-ranging background that make her an ideal candidate to help lead the nearly 100,000 public servants at USDA." Ranking Member John Boozman, an Arkansas Republican, added, "She has shown herself to be a thoughtful leader while overseeing the rural development mission, and I believe those qualities will be an asset in this new role." Torres Small was confirmed by the United States Senate to serve as the Under Secretary for Rural Development on October 7, 2021. She was nominated to serve as Deputy Secretary by President Joe Biden in February following the resignation announcement by Jewel Bronaugh, who stepped away from the role to spend more time with family. *********************************************************************************** Truterra Pays $9 Million to Carbon Sequestering Farmers Truterra, LLC Thursday announced the results of its carbon program for 2022, which paid more than $5.1 million to farmers for approximately 262,000 metric tons of carbon stored. In the first two years of the program, Truterra has paid more than $9 million to farmers for over 462,000 metric tons of carbon. Truterra President Tom Ryan says, “By working with and through farmer's trusted advisor, the carbon program has continued to achieve great success in its second year.” The company reports that 273 farmers participating in the 2022 carbon program, receiving an average total payment per participating farmer of over $18,000. Truterra is a self-described leading sustainability solutions provider, advancing and connecting sustainability efforts throughout the food system at scale – from farmers to ag retailers to value chain collaborators, including food and fiber companies. Truterra was launched in 2016 by Land O'Lakes, Inc., a member-owned cooperative that spans the spectrum from agricultural production to consumer foods. *********************************************************************************** Food Spending Decreased Unevenly Across States in 2020 The COVID-19 pandemic in the United States disrupted the food industry in 2020, according to fresh data from USDA’s Economic Research Service. Inflation-adjusted total U.S. food expenditures were 6.6 percent lower in 2020 than in 2019. However, individual states experienced varying degrees of food spending decline. The ERS developed State-level Food Expenditure Series helps to illustrate annual food spending changes across States since 1997, including Washington, DC. From 2019 to 2020, each state saw decreases in inflation-adjusted, per capita total food spending. The smallest decreases in food spending were in Iowa, South Carolina, and North Carolina. The states that saw the largest decreases in inflation-adjusted, per-capita food spending were Hawaii, Washington, DC, Florida, and Nevada. These states typically have large out-of-state population inflows from nonresident workers and tourists. The spending changes occurred as health concerns and mobility restrictions during the first year of the pandemic led consumers to spend less at restaurants and other eating-out establishments. *********************************************************************************** Dairy Checkoff Building Trust with Youth The dairy checkoff is bringing a new approach to building trust with young Americans by helping high school curriculum writers across the country incorporate accurate science behind dairy farming. The “On The Farm STEM” experience is co-funded by National Dairy Council and Midwest Dairy. The effort brings leading science educators and curriculum directors to dairy farms to discover ideas that can fit into high school curriculum. Ultimately, the program, created in partnership with the American Farm Bureau Foundation for Agriculture, will offer a science-based counterbalance to misunderstanding about how dairy is responsibly produced by farmers and its contributions to health and wellness. National Dairy Council’s Lindsay Datlow says, “With education and action, today’s youth will be empowered to understand how dairy foods fit into an overall healthy and sustainable food system.” Some dairy-focused classroom materials already are being used in school pilot programs. The curriculum is expected to be implemented in several states by early 2024.
| Rural Advocate News | Thursday May 18, 2023 |
Thursday Watch List Markets USDA's export sales report will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. U.S. existing home sales and U.S. leading indicators for April are due at 9 a.m., followed by the Energy Department's weekly report of natural gas storage at 9:30 a.m. After Russia agreed to extend the Black Sea grain deal Wednesday, traders will be watching for shipments out of Ukraine and the latest weather forecasts. Weather A cold front is moving through the Upper Midwest down through the Central Plains on Thursday with scattered showers likely, especially during the afternoon. Moisture ahead of the front should be good enough to produce widespread precipitation across western Kansas and the Panhandles which could be heavy, helping to ease drought conditions in these areas.
| Rural Advocate News | Wednesday May 17, 2023 |
Biden Administration Announces $11 Billion Clean Energy Investment The Biden Administration Tuesday announced the availability of nearly $11 billion in grants and loan opportunities to help rural energy and utility providers. The funding will help bring affordable, reliable, clean energy to communities across the country. The announcement is the single largest investment in rural electrification since President Franklin D. Roosevelt signed the Rural Electrification Act into law in 1936. Agriculture Secretary Tom Vilsack says that through the effort, the administration is "supporting thousands of new jobs and helping lower energy costs in the future." Funding is available through two programs under the Inflation Reduction Act. Specifically, the Department of Agriculture will open a Letter of Interest process for the Empowering Rural America program, making $9.7 billion available to eligible rural electric. USDA will also open a Letter of Interest process for the Powering Affordable Clean Energy program, making $1 billion available in partially forgivable loans to renewable-energy developers and electric service providers. *********************************************************************************** USDA Releases Black Sea Trade Vulnerability Dashboard The Department of Agriculture Tuesday released a dashboard demonstrating the scope of Black Sea grain and oilseed trade. USDA's Foreign Agricultural Service says millions of tons of grain are shipped through the region annually, making the Black Sea region a major supplier of agricultural commodities worldwide. The dashboard demonstrates the impacts Black Sea trade disruption can have on food access in various countries. The analysis focuses on key commodities, including barley, corn, soybean oil, sunflower seed oil, and wheat. For each country, the largest suppliers are shown, which allows the dashboard to illustrate the potential impact of Russia's war in Ukraine. USDA Undersecretary for Trade and Foreign Agricultural Affairs, Alexis M. Taylor, says, "By looking at the Vulnerabilities to Trade Disruption dashboard, it becomes very clear how big an impact Russia's war has on food security in countries." The dashboard and all other USDA FAS tools and reports are available at www.fas.usda.gov. *********************************************************************************** Socially Disadvantaged farms Concentrated in South and West Data from USDA’s Economic Research Service shows socially disadvantaged farmers and ranchers tend to be more concentrated in southern and western regions of the country. USDA defines socially disadvantaged farmers as those belonging to groups subject to racial or ethnic prejudice. In some counties, the proportion of operations classified as racially or ethnically socially disadvantaged is more than 58 percent, such as in parts of Arizona, New Mexico, Texas, and Florida. Overall, socially disadvantaged farms accounted for 9.4 percent of the two million farms in the United States. In 2017, 1.3 percent of all producers identified themselves as Black or African American only, 1.7 percent identified as American Indian or Alaska Native only, 0.6 percent identified as Asian only, 0.1 percent as Native Hawaiian or Pacific Islander only, and 0.8 percent of all producers reported more than one race. In addition, 3.3 percent of all producers of any race indicated Hispanic, Latino, or Spanish origin. *********************************************************************************** 2022 National Beef Quality Audit Shows Efficiency Improvements The beef cattle industry is producing a high-quality product that consumers want more efficiently. NCBA this week announced the findings as part of the 2022 Beef Checkoff-funded National Beef Quality Audit results. Since 1991, the Beef Checkoff-funded National Beef Quality Audit has delivered a set of guideposts and measurements for cattle producers to help determine quality conformance of the U.S. beef supply. NCBA's Josh White says, "The NBQA is an important tool for the industry to identify where improvements are being made and where there are opportunities to capture more value.” When comparing 2016 and 2022 NBQAs, the largest improvement was overall increased efficiency across the beef supply chain. Key findings include market segments no longer consider food safety as a purchasing criterion, but as an expectation, and market sectors indicated that their companies strive to increase their sustainability. The NBQA, conducted approximately every five years, provides an understanding of what quality means to the various industry sectors, and the value of those quality attributes. *********************************************************************************** Certified Angus Beef Expands Offering with Grass-Fed Beef Consumer demand for high-quality beef has been a long-time sales driver for Certified Angus Beef, and ultimately, it has increased demand for superior Angus genetics. As consumer preferences evolve, the brand is growing to provide premium beef for every liking. And now, that will include a grass-fed option: Certified Angus Beef Grass-Fed by Niman Ranch. Certified Angus Beef President John Stika says, “This product will represent a small portion of total sales, but it's an important addition that helps us meet the needs of consumers who have different preferences.” The Certified Angus Beef Grass-Fed by Niman Ranch product will make up less than one percent of the total CAB supply. A niche product, the grass-fed, natural beef will initially only be available through a few, exclusive restaurants and grocery stores. Consistent with all Certified Angus Beef brand products, the grass-fed beef must meet all ten specifications to qualify for the brand. *********************************************************************************** Lawmakers Ask Automakers to Keep AM Radio A group of more than 100 lawmakers this week signed a letter to automakers expressing concerns about the removal and planned removal of AM radio receivers in vehicles. Representative Greg Pence, an Indiana Republican, led the effort, and says, “If automakers are seeking to remove access to AM radio, my constituents deserve an explanation as to how this could impact their lives and public safety.” The letter highlights the need of rural Americans to access AM radio, given limited internet and cell phone connectivity. The letter states, “We urge you to maintain AM radio receivers in all vehicles and prioritize consumers and public safety.” Federal data shows that more than 75 radio stations, mostly AM stations, cover at least 90 percent of the U.S. population and are equipped with backup communications equipment for broadcasting during public emergencies. There have been reports that automakers, including Ford, Volkswagen, BMW, Mazda, Volvo, Tesla, Polestar, Rivian, GM, and Mercedes Benz, removed, or are planning to remove, broadcast AM radio receivers from all-electric vehicles.
| Rural Advocate News | Wednesday May 17, 2023 |
Wednesday Watch List Markets A report on U.S. housing starts in April is set for 7:30 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly inventory report at 9:30 a.m. Traders will continue to monitor the latest weather forecasts and watch for any news regarding the Black Sea grain deal. Weather An old front and humid weather will produce scattered showers in the Southeast on Wednesday. Isolated showers and thunderstorms will develop in the High Plains ahead of a cold front that is moving through the Northern Plains. The front is producing scattered light showers, not enough to impact planting for too many areas today
| Rural Advocate News | Tuesday May 16, 2023 |
Lawmakers Introduce Legislation to Classify Corn as an Advanced Biofuel New legislation introduced Monday in the House of Representatives would allow for ethanol from corn starch to qualify as an advanced biofuel. The Fuels Parity Act would also require the Environmental Protection Agency to use the Argonne GREET model to determine the greenhouse gas emission profile of biofuels under the RFS. Corn is currently prohibited from qualifying as an advanced biofuel, even if it can meet the required scientific thresholds, by a provision in the 2007 RFS expansion known as the “corn discrimination clause.” No other feedstock is limited – only corn starch used for ethanol. Allowing corn to qualify as an advanced biofuel would incentivize lower emissions from ethanol production and allow corn to access another bucket of the RFS. If ethanol can meet the scientific thresholds, then it should be allowed to qualify as an advanced biofuel and generate an advanced biofuel RIN, according to lawmakers introducing the legislation. *********************************************************************************** NCGA: Ethanol Bill Would Level the Playing Field The National Corn Growers Association supports the Fuels Parity Act introduced in the House of Representative's Monday. NCGA President Tom Haag says the legislation "Recognizes the declining carbon intensity of today's low-carbon ethanol and helps level the playing field." Published analysis from the Department of Energy's Argonne National Laboratory concludes corn ethanol's carbon intensity decreased 23 percent from 2005 to 2019 due to increased corn yield, reduced fertilizer intensity and improved ethanol production efficiency, with corn ethanol now between 44 and 52 percent lower in carbon intensity than the gasoline it replaces. Argonne's analysis is consistent with recent research from Environmental Health and Engineering that corn ethanol today is 46 percent lower in carbon intensity than gasoline, with the potential for further reductions from additional corn feedstock and production process improvements. Under the law, advanced biofuels must deliver a 50 percent or more reduction in greenhouse gas emissions compared to gasoline, a requirement today's ethanol now meets. *********************************************************************************** New Survey Reveals Farmer Use of Automation Growers now spend an average of $500,000 a year on automation in response to the persistent ag labor shortage. Western Growers discovered the data in its Specialty Crop Automation Report. The report, which tracks and measures industry progress in harvest automation across the fresh produce industry, is part of the Western Growers Global Harvest Automation Initiative, which aims to accelerate ag automation by 50 percent in ten years. Most progress was made in the weeding and harvest assist segments; market-ready solutions are able to meet grower economic targets and alleviate key challenges, such as lack of labor availability. Growers reported ROIs for weeding solutions of less than one to two years, depending on the type of crop and technology used. Growers want more trained agtech personnel, with 50 percent indicating that they had internal employees who dedicated the majority of their time to the integration of automation investments. *********************************************************************************** Groundwater Organizations see Nitrate Contamination As Top Concern New data from USDA’s Economic Research Service finds that 30 percent of groundwater organizations cite nitrate contamination as a groundwater quality concern. Nitrates can come from animal manure and chemical fertilizers that leach into groundwater. When groundwater pumping exceeds the volume of groundwater recharge, the concentration of contaminants like nitrates can increase. Nitrate contamination is a concern on more than half of the groundwater-fed irrigated acreage within groundwater organization service areas. USDA’s Survey of Irrigation Organizations collected information on the estimated 735 local entities that manage on-farm groundwater use through statutory, regulatory, or other powers. While nitrate contamination was the most common groundwater quality concern reported, contamination by salinity, other nutrients, and heavy metals are a concern for 27, 19, and 18 percent of groundwater organizations, respectively. USDA’s Economic Research Service says contaminated groundwater can harm crops or make the water unusable for irrigation entirely. *********************************************************************************** Rodale Institute Applauds USDA Investments in Organic Farmers The Department of Agriculture is expanding opportunities for organic farmers, a welcome investment, according to the Rodale Institute. USDA announced the expanded opportunities last week. Through the newly-established Organic Market Development Grant Program, USDA’s Agricultural Marketing Service will issue up to $75 million in competitive grants to fund projects designed to expand and improve markets for domestically produced organic products. In addition, the Farm Service agency increased the cost share amount under the Organic Certification Cost Share Program, which helps organic producers cover organic certification costs, to the maximum amount allowed by statute. Rodale Institute CEO Jeff Tkach says, “Consumer demand for organic products is growing rapidly and the USDA’s support will help American farmers meet the needs of the market.” Recent USDA data shows farms and ranches in the United States sold over $11 billion in certified organic commodities in 2021, a 13 percent increase from 2019. *********************************************************************************** Gas Prices Edge Higher, Diesel Lower For the first time in several weeks, the nation's average gasoline price increased, rising four cents from a week ago to $3.51 per gallon. The national average is down 14.9 cents from a month ago and 95.6 cents per gallon lower than a year ago. The national average diesel price fell four cents in the last week and stands at $3.97 per gallon, $1.59 lower than one year ago. GasBuddy's Patrick De Haan says, "We're likely to soon see gasoline prices slip to their largest year-on-year deficit since COVID hit, when prices fell over $1 per gallon from 2019, so the relief at the pump has been significant." With continued discussion over the U.S. hitting its debt limit, oil prices have seen additional volatility. De Haan adds that it’s looking more likely that, barring a major hurricane or series of refinery outages, the national average may not end up hitting the $4 per gallon mark.
| Rural Advocate News | Tuesday May 16, 2023 |
Tuesday Watch List Markets A report on U.S. retail sales for April is due out at 7:30 a.m. CDT, followed by U.S. industrial production at 8:15 a.m. Traders continue to keep an eye on the latest weather forecasts and watch for any update of the Black Sea grain deal. Weather A small system is moving east along the Ohio Valley, producing scattered showers and thunderstorms, some of which may be heavy and severe. Additional showers and thunderstorms are expected to pop up to the south of this system as well across the Gulf Coast and Southeast. Drier weather elsewhere will help to dry out areas that were flooded last week.
| Rural Advocate News | Monday May 15, 2023 |
USDA Releases U.S. Crop Production Outlook USDA projects a record U.S. corn crop of 15.3 billion bushels, up over 10 percent on increases to both area and yield. The yield projection is 181.5 bushels per acre. The 2023-2024 corn outlook calls for larger production, greater domestic use and exports, and higher ending stocks. Total corn supplies are forecast at 16.7 billion bushels. The season-average farm price is expected to be $4.80 a bushel, down $1.80 from the prior year. The U.S. soybean crop will be 4.51 billion bushels, up five percent from last year on higher yields. Soybean supplies are projected to be up four percent to 4.75 billion bushels. The season-average soybean price is forecast more than $2 lower at $12.10 per bushel. The USDA’s all-wheat production is forecast at 1.65 million bushels, up slightly from the previous year. The all-wheat yield is projected at 44.7 bushels, and the season-average price is down to $8 a bushel. *********************************************************************************** Credit Conditions Strong as Interest Rates Climb Agricultural credit conditions in the Tenth District of the Kansas City Fed remained strong, and farm real estate values continued to increase. However, growth has softened. While improvements in farm finances and credit conditions steadied and some lenders expected a deterioration in the months ahead, multiple years of strong incomes continued to keep credit stress low. The outlook for the U.S. farm economy in 2023 remained favorable as prices of key commodities were at multi-year highs. Financial performance and liquidity at agricultural banks remained solid and farm lenders appeared well-positioned to meet higher credit demand through the early months of this year. Farm loan interest rates rose alongside further increases in benchmark rates. The average rate charged on agricultural loans was about 30 basis points higher than the previous quarter and almost 300 basis points higher than a year ago. The farm real estate market has softened as interest rates rose. *********************************************************************************** More Reaction to Supreme Court’s Prop 12 Decision The Supreme Court decision upholding California’s Prop 12 continues to draw strong reactions from America’s agricultural stakeholders. Kansas Republican Senator Roger Marshall says he’s disappointed in the Court’s decision not to strike down Prop 12. “We can’t allow radical state laws to dictate the agricultural practices in every other state,” Marshall says. “This will only increase food costs for people already suffering from food insecurity and drive farmers and ranchers out of business.” Marshall plans to re-introduce his Exposing Agricultural Trade Suppression Act which will prohibit state and local governments from interfering with agricultural production in other states. Iowa’s Ag Secretary Mike Naig says this decision opens the door for the largest states to dictate laws and regulations to the rest of America. “While the ruling was focused on agriculture, it will certainly creep into other industries,” he says. “It will drive the cost of production and food prices higher.” *********************************************************************************** More Elected Officials Concerned About Lack of AM Radio in New Cars Representatives Mike Gallagher of Wisconsin and Josh Gottheimer of New Jersey sent a bipartisan letter to the Federal Emergency Management Agency regarding the future of AM radio in new vehicles. They expressed concerns over auto makers’ decision to drop AM radio access in the new electric vehicles that will be coming to market. The members talked about the important role that AM radio plays in providing life-saving information to the public. They also asked FEMA to outline what impact this would have on the nation’s Emergency Alert System and what steps the agency is taking to prevent this from happening in future vehicle models. “AM radio has extensive geographic reach, including areas where there’s little cell service or broadband internet access,” they say in the letter. “Given the growth in electric vehicle sales, it’s vital that FEMA makes clear the impact that no AM radios will have on public safety.” *********************************************************************************** Industry Groups Want More Biomass-Based Diesel in RFS Volumes Clean Fuels Alliance America joined four other trade associations in sending a letter to EPA administrator Michael Regan regarding biofuel volumes in the Renewable Fuels Standard. They want the EPA chief to substantially raise the biomass-based diesel and overall advanced biofuel volumes in the RFS for 2023-2025. The letter highlights the need for strong RFS volumes to support the goals of the National Blueprint for Transportation Decarbonization. “Our industries need these fuels to decarbonize air transport, long-haul shipping and trucking, home heating, and to meet the needs of our customers and supply chain partners,” the letter says. “The proposed RFS volumes are simply inconsistent with the investments our industries will make to continue expanding production and commercial availability of these fuels by 2025.” The groups also say in the letter that their industries continue to make significant investments in producing, distributing, and using low-carbon fuels, but more can be done. *********************************************************************************** Groups Urge Congress to Reject Increases in Farm Subsidies A group of taxpayer, agriculture, and environmental organizations held a press conference to urge Congressional leadership to reject attempts to increase reference prices for covered commodities. The National Sustainable Agriculture Coalition was one of the groups who opposed raising the Price Loss Coverage reference prices in the 2023 Farm Bill at a time when gross farm income is higher than ever. “Taxpayer commodity program subsidies were designed as a safety net tool, triggered when necessary, to help protect against unpredictable losses that are a part of farming,” says Billy Hackett, NSAC Policy Specialist. “It’s not an annual entitlement program for the country’s most successful farms. Ten percent of the farms get 70 percent of the subsidies and throwing money at an unsustainable system is no solution.” The other organizations taking part in the press conference included the Environmental Working Group, FreedomWorks, the National Taxpayers Union, Farm Action, and several others.
| Rural Advocate News | Monday May 15, 2023 |
Top 5 Things to Watch - Wheat Tour Highlights Coverage OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of May 14. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Kansas wheat tour: Crop tours are always highly anticipated, but for certain this year commodity markets are listening for how bad conditions are in hard red winter wheat country. We'll report from the annual Wheat Quality Council Hard Winter Wheat Tour starting Tuesday night, with mid-day updates and a full report from tour scouts each evening Tuesday and Wednesday. Final numbers will be available late-morning Thursday. 2. Markets respond to bullish news: We'll continue to track the market's response to Friday's World Agricultural Supply and Demand Estimates (WASDE) report, which sent wheat futures skyward, and what the wheat tour adds to that. There is also continued news coming on Brazil's safrina (second-crop) corn. 3. Change in the weather patterns: The trough of low pressure that has been situated over the West, supplying energy to fire off the past week's thunderstorms, is about to shift. DTN weather forecasters expect a ridge over the West, heating up western North America. At the same time, a new trough moves into Eastern Canada, chilling that area as well as the Midwest and Northeast. We'll watch for bursts of cold that carry a slight chance for frost in far northern U.S. and Canadian Prairies. 4. Ukraine grain deal: In an ongoing issue, we'll again watch for the latest in the Russia-Ukraine grain sales agreement, set to expire May 18. As the AP has reported, the deal has been extended twice so far, and Ukraine officials and allies are seeking another extension to continue the flow of grain to Africa, the Middle East and Asia. Russia continues to balk at those extensions, pushing to tie renewed ability to move its fertilizer supplies into the market stream. 5. Economic reports fill the week: Monday sees the ongoing USDA Crop Progress and grain export inspections reports, as well as soybean crush reports. On the broader economy, April retail sales and industrial production numbers hit Tuesday, with housing starts and Energy Department inventory numbers on Wednesday. Thursday sees weekly U.S. jobless claims, existing home sales and the April U.S. index of leading indicator numbers. May's Cattle on Feed report hits Friday, with DTN analysis coming in that afternoon.
| Rural Advocate News | Monday May 15, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking for any movement of news on the Black Sea grain initiative and taking in the latest weather forecasts. USDA's weekly report of export inspections is due out at 10 a.m. CDT, followed by a soybean crush report from the National Oilseeds Processors Association later Monday morning. USDA's Crop Progress report will have new estimates of planting progress at 3 p.m. Weather A small system in the Ozarks is producing areas of showers for the Southern Plains into the southwestern Corn Belt Monday morning and will spread more showers through these areas and into the Ohio Valley Monday night. Some isolated showers may pop up in the West and through the Southeast as well. Drier conditions are forecast for northern zones into Canada.
| Rural Advocate News | Friday May 12, 2023 |
Supreme Court Rejects Challenge to Prop 12 The U.S. Supreme Court rejected a challenge to California’s Prop 12. The law bans the sale of pork from pigs that are kept in tightly confined spaces. The justices voted 5-4 to uphold a lower court’s decision to dismiss a lawsuit filed by the National Pork Producers Council and the American Farm Bureau that sought to invalidate the law. The groups argued that the measure violated a U.S. constitutional provision called the Commerce Clause that courts say gives the federal government the power to regulate interstate commerce, not the states themselves. “While the Constitution addresses many weighty issues, the type of pork chops California merchants may sell is not on that list,” wrote conservative Justice Neil Gorsuch, who authored the Court’s main opinion. The Prop 12 measure was approved by California voters in 2018. It bans in-state sales of pork, veal, and eggs from animals whose confinements didn’t meet space requirements. *********************************************************************************** Reaction to Supreme Court Decision on Prop 12 The National Pork Producers Council reacted negatively to the Supreme Court’s decision on California’s Prop 12. “We are very disappointed with the Supreme Court’s opinion,” says Scott Hays, NPPC president. “Allowing state overreach will increase prices for consumers and drive small farms out of business, leading to more consolidation.” NPPC is still evaluating the Court’s full opinion to fully understand all the implications. “We will continue fighting for our pork farmers and American families against misguided regulations,” Hays adds. Kitty Block, president and CEO of the Humane Society of the U.S., says she’s “delighted” that the Supreme Court upheld California’s Prop 12. “It’s the nation’s strongest farm animal welfare law, and the Court made clear that preventing animal cruelty and protecting public health are core functions of our state governments,” she says. Also, HS-USA “won’t stop fighting until the pork industry stops confining sows in cages so small they can’t turn around.” *********************************************************************************** Senators Slam Plant-Based Dairy Labeling Senators Tammy Baldwin of Wisconsin and Jim Risch of Idaho led a bipartisan group in calling out the administration’s draft guidance on labeling non-dairy product imitators. The Biden administration’s guidance allows non-dairy products to use dairy names like milk when labeling their products. The Food and Drug Administration contradicted its own regulations by releasing guidance that would allow plant-based products to continue using dairy terms despite not containing dairy or having the nutritional value of dairy products. “The inaction by FDA harms public health as a result of consumer misperception over dairy products’ inherent nutritional value,” the Senators wrote. “As a result, it’s imperative that FDA enforce existing standards of identity for dairy in both current and future guidance.” The two senators have led the charge to crack down on imitation products using dairy’s name. They authored bipartisan legislation called the Dairy Pride Act to combat the unfair labeling practice. *********************************************************************************** Combine Sales Continued Growing in April Combine harvester sales in the U.S. and Canada continued growing while total tractor sales declined below the five-year average. The Association of Equipment Manufacturers says total U.S. ag tractor unit sales decreased in April, down 16 percent year-over-year. Unit sales of four-wheel-drive tractors climbed 54 percent higher, and the 100-plus horsepower segment sales climbed five percent. U.S. self-propelled combine sales grew 23 percent for the month, leading to a year-to-date gain of 72 percent. Sales dropped in both the sub-40 horsepower segment by 20 percent, and the 40-100 horsepower segment dropped 13 percent during April. In Canada, combine harvester sales continued growing, up 51 percent in April and 133 percent year-to-date. Total unit sales in tractors finished the month down 25 percent due to continued losses in all tractor segments. Curt Blades of AEM says, “Strong commodity prices are behind increases in the sales of the larger segments of tractors and harvesters.” *********************************************************************************** Ag Innovation Challenge Deadline Extended The American Farm Bureau Federation has extended the deadline to May 26 for entrepreneurs to apply online for the 2024 Farm Bureau Ag Innovation Challenge. The tenth year of this national business competition showcases U.S. startup companies developing innovative solutions to the challenges faced by America’s farmers, ranchers, and rural communities. Farm Bureau is offering $165,000 in startup funds through the course of the competition, which will culminate in the top ten semi-finalists competing in a live pitch competition in front of Farm Bureau members, investors, and industry representatives at the 2024 Farm Bureau National Convention. “Start-up companies like those we recognize through the Ag Innovation Challenge play an important role in the future of American agriculture,” says AFBF President Zippy Duvall. Detailed eligibility guidelines and the competition timeline can be found at fb.org/challenge. “Farmers rely on continuous improvements powered by innovation to keep providing food, fuel, and fiber,” Duvall says. *********************************************************************************** South Korea Hit by Foot and Mouth Outbreak Authorities in South Korea have ordered the culling of several hundred cattle and put biosecurity measures in place after cases of foot and mouth disease were found in a central province. The Cattle Site says the cases marked the first confirmed outbreak of FMD since January 2019. The current contagion occurred on three farms in a province south of Seoul, the country’s capital. The South Korean Vice Ag Minister says related agencies and local governments were asked to make all-out efforts on preventative measures to stop the further spread of foot and mouth disease. A team was sent to the area to investigate the outbreak, disinfect farms in surrounding areas, and put a 48-hour hold in place on all movement of people or livestock in the area. Foot and Mouth is highly transmissible and causes lesions and lameness in cattle, sheep, goats, and other cloven-hoofed animals. Authorities plan to cull 360 cattle.
| Rural Advocate News | Friday May 12, 2023 |
Friday Watch List Markets The University of Michigan's index of U.S. consumer sentiment is set for 9 a.m. CDT Friday. But, for grain traders, the highlights of the day are out at 11 a.m. CDT, when USDA releases its WASDE and Crop Production reports. Traders will also check the latest weather forecasts, watch for any export activity and for any news regarding the extension of the Black Sea grain deal. Weather An upper-level system is meandering in the Plains, spreading showers and thunderstorms across the Plains into the Midwest down to the Southeast on Friday. Rain is slow-moving, causing some heavy rain and potential for flooding. Areas in the northern half of the Plains and across parts of Texas stand the best chance at seeing meaningful, heavy rain that could ease drought conditions. But those same showers could become severe storms with the focus around eastern Nebraska and western Iowa for the greatest threats.
| Rural Advocate News | Thursday May 11, 2023 |
Consumer Price Index Increases, Grocery Story Prices Lower The Consumer Price Index rose again in April, but grocery store prices for food declined. The Bureau of Labor Statistics reported Wednesday that the Consumer Price Index for All Urban Consumers rose 0.4 percent in April. The overall food index was unchanged in April, as the food at home index fell 0.2 percent over the month, following a 0.3-percent decrease in March. Four of the six major grocery store food group indexes decreased over the month. The index for fruits and vegetables decreased 0.5 percent in April, and the index for meats, poultry, fish, and eggs declined 0.3 percent. The dairy and related products index decreased 0.7 percent in April as the milk index fell 2.0 percent, the largest decline in that index since February 2015. The nonalcoholic beverages index declined 0.1 percent over the month. In contrast, the index for other food at home rose 0.2 percent in April, following a 0.4-percent increase the previous month. *********************************************************************************** USDA Announces Steps to Enhance Organic Markets, Support Producers The Department of Agriculture is taking additional steps to strengthen the market for domestically grown organic goods and support producers seeking organic certification. Agriculture Secretary Tom Vilsack Wednesday announced funding opportunities through USDA's Organic Transition Initiative. Launched in 2022, the program helps existing organic farmers and those transitioning to organic production and processing. Vilsack says, "For many farmers, the transition period before attaining organic certification can be cost-prohibitive, so USDA is also helping mitigate the risk involved for farmers who want to be able to grow and market organic crops." USDA's Agricultural Marketing Service will issue up to $75 million in competitive grants through the new Organic Market Development Grant Program. The Farm Service Agency increased the cost share amount under the Organic Certification Cost Share Program as part of USDA's broader effort to support organic producers. Specifically, FSA will cover up to 75 percent of costs associated with organic certification. *********************************************************************************** Booker-Grassley Bill Offers CRP Reforms Bipartisan legislation introduced by New Jersey Democrat Cory Booker and Iowa Republican Chuck Grassley in the Senate would change the Conservation Reserve Program. The Conservation Reserve Program Reform Act would prioritize enrolling marginal farmland in the CRP, rather than prime farmland. The lawmakers say the legislation would generate more durable wildlife and environmental benefits while reducing competition for productive farmland between the Department of Agriculture and farmers, especially new and beginning farmers. Senator Grassley says, “The reforms in this bill ensure that CRP is not used on highly-productive farmland and instead focus the program on highly-erodible land.” The CRP Reform Act would set CRP's overall acreage cap at 24 million acres for fiscal year 2024 to 2028, with an emphasis on enrolling marginal land. The bill would increase incentives to enroll marginal farmland through the continuous enrollment and grasslands categories while reducing the rental rate for general CRP sign-ups by ten percent. *********************************************************************************** NCGA: Biofuels Should be Used to Lower Auto Emissions The National Corn Growers Association urges the Environmental Protection Agency to use biofuels to reduce automobile emissions. NCGA Chairman Chris Edgington testified to the EPA during a public hearing earlier this week regarding EPA's proposed Multi-Pollutant Emission Standards for model years 2027-2032. Edgington expressed frustration that EPA only looked at one solution, electric vehicles, to lower greenhouse gas and pollutant emissions. The NCGA leader says, "EPA's proposal limits the ability of clean, low-carbon ethanol to contribute greater emission reductions and support affordable options." Edgington encouraged EPA to address the serious limitations of its proposal and work with NCGA to level the playing field and advance the needed rulemaking to improve fuel standards. Edgington added, “Clean, high-octane fuel from mid-level ethanol blends, used as a system with advanced engines, offers an essential pathway for achieving significant greenhouse gas and complementary criteria emission reductions from model year 2027 and later vehicles.” *********************************************************************************** Gene-Editing Produces First Calf Resistant to Viral Disease Scientists have collaborated to produce the first gene-edited calf with resistance to bovine viral diarrhea virus, a virus that costs the U.S. cattle sector billions of dollars annually. Over the past 20 years, the scientific community discovered the main cellular receptor and the area where the virus binds to that receptor, causing infection in cows. Scientists modified the virus binding site in this recent study to block infection. The first gene-edited calf, named Ginger, was born healthy on July 19, 2021. The calf was observed for several months and then later challenged with the virus to determine if she could become infected. She was housed for a week with a BVDV-infected dairy calf that was born shedding the virus. Ginger's cells displayed significantly reduced susceptibility to BVDV, which resulted in no observable adverse health effects. USDA says the study demonstrates the possibility of reducing the burden of bovine viral diarrhea virus-associated diseases in cattle by gene editing. *********************************************************************************** Apples and Oranges Top U.S. Fruit Choices Apples held the top spot for total fruit available for consumption in 2021 at more than 26 pounds per person after adjusting for losses. USDA’s Economic Research Service’s loss-adjusted food availability data adjusts food availability data for food spoilage, plate waste, and other losses to more closely approximate actual consumption. People in the United States consumed an average of 1.7 gallons of apple juice, roughly nine pounds of fresh apples, and a total of 3.1 pounds of canned, dried, and frozen apples in 2021. Among the top seven consumed fruits in 2021, apples were the only fruit in which data were available for all five forms, fresh, canned, frozen, dried, and juice. Pineapples were the only other canned option among these seven fruits for which data were available, while strawberries were the only other frozen fruit. Bananas, at 13.2 pounds per person, topped the list of most popular fresh fruits, while orange juice, at 1.9 gallons, was the most popular fruit juice.
| Rural Advocate News | Thursday May 11, 2023 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, producer prices for April and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage follows at 9:30 a.m. Traders continue to watch the latest weather forecasts and check for either export sales announcements or cancellations at 8 a.m. Weather A weakening upper-level system is slowly moving into the Plains and already has produced areas of heavy rain and severe weather since Wednesday afternoon. More of the same will occur Thursday, though a bit farther east than Wednesday. Some of the driest areas of the country are finding some good rainfall, though rain is not coming to all places. Still, this is an excellent boost to soil moisture for a lot of areas.
| Rural Advocate News | Wednesday May 10, 2023 |
EIA Expects Less Electricity Demand this Summer, More Generation from Renewables The U.S. Energy Information Administration expects a slightly cooler summer in 2023 will lead to less demand for air conditioning than in 2022. The result will slightly reduce overall electricity demand this summer. EIA expects that despite less electricity demand this summer, more electricity will be generated from renewable sources and natural gas throughout 2023. EIA forecasts this summer will see the second-most U.S. natural gas consumption for electricity generation on record, surpassed only by last summer. EIA continues to expect significant growth in U.S. electricity generation from wind and solar, but the wet winter in California and the western United States should also increase electricity generated from hydropower during the coming months. EIA expects U.S. retail electricity costs will remain higher than before the COVID-19 pandemic. Those higher prices mean that even if households consume less electricity, their electricity bills will likely be similar to or slightly higher than last summer. *********************************************************************************** USDA Seeking American Agriculture Feeds Kids and Families Acquisitions The Department of Agriculture plans to purchase various protein items to support activities to leverage American Agriculture to feed kids and families. Potential materials may include dairy, meat, fish, and poultry items. The funds, provided through USDA's Commodity Credit Corporation, will support nearly $1 billion to purchase food for emergency food providers like food banks. The purchases are phase two of the program. Interested parties shall be responsible for ensuring that they have the most up-to-date information about this acquisition. The contract type is anticipated to be firm-fixed price, indefinite-delivery/definite quantity. Commodities and the products of agricultural commodities acquired under this contract must be a product of the United States and shall be considered to be such a product if it is grown, processed, and otherwise prepared for sale or distribution exclusively in the United States. Potential contractors must meet the AMS vendor qualification requirements to be eligible to submit offers. *********************************************************************************** AFBF Urges USDA to Accept Petition for FMMO Hearing The American Farm Bureau Federation urges the Department of Agriculture to accept the National Milk Producers Federation Federal Milk Marketing Order petition. AFBF says the petition provides a long-overdue comprehensive Federal Milk Marketing Order hearing to ensure that consumers can access fresh milk and dairy products while protecting dairy farmers from potentially harmful market conditions. AFBF President Zippy Duvall calls on USDA to hold a hearing on FMMO reform and asks the department to go further than a recent NMPF petition by asking for mandatory, audited surveys of dairy processors to be used when determining the make allowances factored into dairy pricing. The letter indicates USDA's authority to conduct a mandatory audit under the Agricultural Marketing Agreement Act. This change and the need for additional reforms were part of a farmer consensus formed at the AFBF-hosted FMMO Forum held in Kansas City, Missouri, last October. NMPF filed its petition on May 1, and USDA must respond to the petition within 30 days. *********************************************************************************** Research: Tinplate Steel Tariffs Will Harm American Consumers The Consumer Brands Association says implementing proposed tariffs of up to 300 percent on tinplate steel imports would increase the cost of canned foods and products by up to 30 percent. The association released two studies on the proposal, which would threaten nearly 40,000 union and non-union manufacturing jobs. The economic impact studies bolster Consumer Brands’ efforts to urge the Department of Commerce and International Trade Commission (I to deny a petition submitted by steel conglomerate Cleveland-Cliffs to impose tariffs of up to 300% on imported tinplate steel from eight countries. Because tinplate is used in hundreds of canned goods – everything from soup to shaving cream – imposing the requested tariffs would raise production costs for U.S. can manufacturers and trigger price hikes for every consumer, as supported by the research. According to the research, the proposed tariffs will increase the cost of canned foods and products by up to 58 cents per product. *********************************************************************************** U.S. Imports of Cut Flowers Grew to $3.3 Billion in 2022 Fresh-cut flowers and plants are popular gifts for special occasions such as Mother’s Day. Many bouquets contain flowers grown in countries where cool, wet climates have historically favored production. In 2022, the United States imported nearly $3.3 billion of cut flowers, plants, and nursery stock products from 81 countries, according to USDA’s Economic Research Service. Imports of fresh-cut roses totaled more than $800 million, while other fresh-cut flowers were valued at a combined $1.1 billion. Live plant imports were valued at nearly $860 million, and imports of other nursery stock products, such as bulbs and greenery, were valued at $492 million. Of the many countries supplying flowers and other nursery stock, Colombia made up the largest import value at $1.2 billion. From 2018 to 2022, Colombia provided about 37 percent of U.S. cut flower and nursery stock value. Other leading suppliers in 2022 included Canada, Ecuador, and the European Union, as well as Mexico, Taiwan, and Costa Rica. *********************************************************************************** USDA, Colorado Introduce Conservation Practice to Address Drought Concerns The Department of Agriculture and Colorado are continuing and strengthening their Conservation Reserve Enhancement Program partnership. Announced this week, the effort supports farmers in Colorado in reducing water use and protecting water quality. Specifically, the newly revised Colorado Republican River project will offer producers a dryland crop production practice on eligible cropland. This option will give producers meaningful tools to continue farming as they work toward permanently retiring water rights and conserving the Ogallala Aquifer for future generations. Through the revised Colorado Republican River Conservation Reserve Enhancement Program partnership, USDA and the State of Colorado will make resources available to program participants who voluntarily enroll in CRP for 14-year to 15-year contracts. The program provides participants with two ways to enroll eligible land. Producers can enroll eligible land in “CP100, Annual Crop Production, Non-Irrigated.” Additionally, participants within the Republican River CREP project area may enroll eligible land in “CP2, Permanent Native Grasses,” “CP4D, Permanent Wildlife Habitat,” and “CP23 or CP23A, Wetland Restoration.”
| Rural Advocate News | Wednesday May 10, 2023 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, the U.S. Labor Department will release the consumer price index for April, a number that will get a lot of attention regarding the future of interest rates. The U.S. Energy Department's weekly inventory report, including ethanol, will follow at 9:30 a.m. The U.S. Treasury reports on the federal budget for April at 1 p.m. Traders will continue to monitor the latest weather forecasts and any news regarding grain shipments in the Black Sea. Weather Waves of showers that have been developing this week continue in the Plains on Wednesday and will spread through more of the region tonight as a weak system in the West approaches. Another batch of showers across the western Gulf of Mexico will move north through the South-Central U.S. throughout the day as well. Other sporadic showers will be possible, but a drier stretch will lead to a nice window for planting before more rain moves through the Midwest later this week and weekend. Mild to warm temperatures continue for most areas.
| Rural Advocate News | Tuesday May 9, 2023 |
Economic Research Service: Farm Income Decline Varies by Region After reaching recent highs in 2021 and 2022, the average net cash income of U.S. farm businesses is expected to decline by 18 percent in 2023 compared with 2022. Farm businesses across the country are forecast to see higher production expenses, lower cash receipts, and lower Government payments in 2023, resulting in lower expected average net cash farm income. However, this overall decline will vary considerably across the country. USDA’s Economic Research Service uses resource regions to depict the geographic specialization in production of U.S. commodities. Farm businesses in the Northern Crescent region, which leads the nation in dairy production, are forecast to see the largest average percentage decrease, 30 percent, while those in the Mississippi Portal, which leads the nation in rice production, are forecast to see the smallest percent decrease, nine percent. Meanwhile, the Fruitful Rim will see an estimated 24 percent decline in average net cash income. *********************************************************************************** AEM Offers Ways to Address the Industry’s Technician Shortage It’s no secret to anyone working in equipment manufacturing the ever-growing technician shortage is a problem poised to get a lot worse before it gets better. According to a 2020 report, the industry may need to fill as many as 73,500 heavy equipment technician positions by 2025. In addition, the report stated equipment manufacturing possesses a job opening rate three times higher than the national average. Among survey respondents, 95 percent agreed with the assertion there was a skills gap in the industry, while 89 percent reported a shortage of workers within their companies. Julie Davis, AEM Senior Director of Workforce and Industry Initiatives, says, “Equipment manufacturers can and should embrace and adopt a number of short-term and long-term strategies to set themselves up for sustained success as it relates to workforce development. AEM offers four tips to businesses for addressing the shortage: focus on retention, fill the talent pipeline, diversify and optimize recruitment strategies, and collaborate with others. *********************************************************************************** March Pork Exports Largest in Nearly Two Years; Beef Exports Show Signs of Rebound March U.S. pork exports were the largest since May 2021, and beef export volumes were the largest since October, according to the U.S. Meat Export Federation. March pork exports totaled 260,195 metric tons, up 17 percent year-over-year and the ninth-largest volume on record. Export value was also the ninth largest at $724 million, up 18 percent from a year ago. These results capped a strong first quarter for U.S. pork as exports reached 716,691 metric tons, up 14 percent from a year ago, valued at $1.96 billion. Beef exports totaled 120,495 metric tons in March, down five percent from a year ago. Export value fell 17 percent to $892.6 million, but both volume and value were the highest in five months. Through the first quarter, beef exports were down eight percent year-over-year to 326,494 metric tons, valued at $2.35 billion. March exports of U.S. lamb muscle cuts totaled 218 metric tons, down five percent from a year ago. *********************************************************************************** Research Reveals How Grazing Management Affects Cattle Weight Gain USDA’s Agricultural Research Service is completing a 10-year study on grazing practices. The study focuses on the two systems of grazing, season-long grazing and intensive rotational grazing, looking at how the systems affect cattle foraging behavior, diet quality, and yearly weight gain in semi-arid, extensive rangelands. The study showed herds in the multi-paddock rotating system feeding in more linear pathways instead of moving around looking for greener grass and selecting bites of more digestible vegetation. They also fed slower, spent more time on the same patch of grass, and didn't turn their heads around much while feeding, compared with steers in the continuous grazing system. These behaviors of less selective foraging resulted in a lower diet quality, reducing weight gain during the growing season. Results, published in Agriculture, Ecosystems, and Environment, show that large herds grazing in small, homogenous paddocks have little opportunity to move around in ways that let them feed on high-quality diet. *********************************************************************************** Smidt Named AFT’s New Director of Land Use and Protection Research American Farmland Trust has named Sam Smidt as National Director of Land Use and Protection Research to develop and implement the organization’s land use protection research agenda. Among his duties, Smidt will lead the Land Use and Protection Research Initiative, which includes and builds upon the existing Farms Under Threat projects. He will also be part of both AFT’s internal virtual research team that discusses and prioritizes overall research needs and AFT’s farmland protection unit, which will work with Sam to help identify and prioritize research questions that could advance farmland protection and retention efforts and AFT’s policy and program development. With an extensive agricultural background, Smidt is skilled at evaluating and modeling land transformation impacts on human and natural systems. Smidt is a native of Morton, Illinois, and he has graduate degrees in both earth and environmental science and policy from Michigan State University and The University of Iowa. *********************************************************************************** Fuel Prices Fall for Third Straight Week For the third consecutive week, the nation's average gasoline price has fallen, declining 7.5 cents from a week ago to $3.50 per gallon. The national average is down 7.5 cents from a month ago and 80.7 cents per gallon lower than a year ago. The national average diesel price declined 6.3 cents in the last week to $4.01 per gallon, $1.51 lower than one year ago. GasBuddy's Patrick De Haan says, “In addition to gasoline prices declining, the average price of a gallon of diesel will join gasoline in the days ahead, falling below $4 per gallon.” De Haan attributes the decline partly due to oil prices holding near recent lows and the transition to summer gasoline being essentially complete. The debt ceiling concerns have also hit oil markets and remain a threat moving forward, should lawmakers approve a solution to the looming potential shutdown of the U.S. government, oil prices may see a stronger rally.
| Rural Advocate News | Tuesday May 9, 2023 |
Tuesday Watch List Markets There are no significant reports scheduled Tuesday, but traders will act busy, checking on the latest weather forecasts and watching out for any news regarding the Black Sea grain deal. Outside markets also remain a source of concern and we should soon hear estimates for Friday's WASDE and Crop Production reports. Weather Another day of rain in the Plains is expected for Tuesday, though these showers will be largely disorganized and come in clusters across the region. Even so, there is still a risk of severe weather, mostly centered around Kansas. Mild temperatures continue to promote planting progress where rains are missing.
| Rural Advocate News | Monday May 8, 2023 |
Food Prices Rise in April The United Nations Food and Agriculture Organization reports that food prices rose in April for the first time in a year. The organization says the increases stem from higher sugar, meat, and rice prices. The Food Price Index, which tracks the international prices of commonly-traded food commodities, averaged 127.2 points in April, 0.6 percent higher than in March. That reading was 19 percent below April 2022 but still five percent higher than April 2021. The FAO Sugar Price Index rose almost 18 percent in March, reaching its highest point since October 2011. The Meat Price Index rose 1.3 percent during the month, driven primarily by higher prices for pig meat. The Cereal Price Index dropped 1.7 percent in April and averaged almost 20 percent below April 2022. The Vegetable Oil Price Index dropped 1.3 percent in April, its fifth-straight monthly decline. The FAO Dairy Price Index dropped by 1.7 percent. *********************************************************************************** Smaller U.S. Cattle Herd Squeezing Meatpacker Profits America’s beef cow herd hasn’t been this small since 1962. Drought and the high cost of feed forced producers to cut their herd sizes instead of keeping animals for breeding. Livestock producers who fatten cattle suddenly have leverage over meatpackers as they negotiate cattle prices with organizations like Tyson Foods, JBS, and Cargill. U.S. News says meat processors are assessing the future of consumer demand should beef prices rise, along with cattle supplies and margins, to determine how many animals to slaughter in the months ahead. Cargill says it expects cattle prices will rise further and beef prices to rise as well. “The unknown factor is demand: how much will consumers be willing to pay,” says Tom Windish of Cargill. The amount of money that meatpackers make buying cattle and converting them to meat dropped under $40 per head in April. That’s after reaching over $700 a head in May 2020. *********************************************************************************** Corn Export Sales Hit Marketing-Year Low Point The USDA says corn export sales hit the lowest level since the 2022-2023 marketing year began on September 1. Cancelations led to a net reduction in corn sales during the seven days ending on April 27 of 315,600 metric tons. China canceled shipments of 562,800 metric tons. Meantime, exports of corn during the week hit a marketing-year high of 1.7 million metric tons. Soybean sales fell to 289,700 metric tons, a seven percent week-to-week drop and seven percent lower than the five-year average. China was the largest buyer at 134,300 metric tons. Soybean exports rose 24 percent on the week to 561,200 metric tons. Wheat sales rose 26 percent from the prior week to just over 211,000 metric tons, up 14 percent from the previous four-week average. Mexico was the leading buyer at 72,600 metric tons. Wheat exports during the week hit almost 289,000 metric tons, down five percent from the previous week. *********************************************************************************** NRCS Opens Up Soil Conservationist Positions The Natural Resources Conservation Service will hire team members over the next few years to help implement the $19.5 billion in the Inflation Reduction Act for conservation programs. The NRCS announced new jobs are opening up for soil conservationists. This is part of a broader effort by the agency to help producers develop conservation plans and implement conservation practices, including critical climate-smart practices. “The Inflation Reduction Act represents the single largest investment in climate and clean energy solutions in American history, and the NRCS programs are an important part of our efforts,” says Robert Bonnie, USDA’s Undersecretary for Farm Production and Conservation. “To help agricultural producers invest in conservation on their farms, ranches, and working forests, we need to grow our team that delivers conservation programs.” The announcements are currently open and close on May 15, 2023. Interested candidates can find more information and apply for the job at USAjobs.gov. *********************************************************************************** Ag Export in 2021 Generate Billions in Economic Activity A new USDA report says exports constitute a significant market for American farm and food products and send ripples of activity through the nation’s economy. The Economic Research Service says America’s agricultural exports, valued at $177.3 billion in 2021, generated an additional $190.5 billion in economic activity. That’s a total of $367.8 billion in overall economic output. On average, that means every $1 of U.S. agricultural products exported generated a total of $2.07 in domestic economic activity. The services, trade, and transportation sectors benefited the most from agricultural exports, generating an estimated $79.5 billion worth of economic activity. On the farm, agricultural exports supported an additional $43.6 billion in business activity beyond the value of the agricultural exports themselves. The impact starts at the farm through purchases of inputs like fuel and fertilizer, spurring additional economy in the manufacturing, trade, and transportation sectors, and the impact continues in many other sectors. *********************************************************************************** USCA Applauds Introduction of the DRIVE Act Last week, Oklahoma Republican Representative Josh Brecheen, himself a fourth-generation rancher, introduced the Deregulation Restrictions on Interstate Vehicles and Eighteen Wheelers Act. The bill would prohibit the Federal Motor Carrier Safety Administration from implementing any rule or regulation requiring vehicles over 26,000 pounds that are engaged in interstate commerce to be equipped with a speed-limiting device set to a maximum speed. In 2022, the FMSCA issued a notice of intent that it was considering rules requiring speed-limiting devices for certain large commercial vehicles. USCA Transportation Committee Chair Steve Hilker says their members are responsible for safely transporting millions of animals. “Livestock haulers must take into consideration the welfare of their cargo, which means avoiding rough road conditions, adjusting speed, and being more aware of their surroundings to prevent animal injuries,” says Hilker. “USCA is opposed to any federal mandate that limits a driver’s autonomy over their own truck and trailer.”
| Rural Advocate News | Monday May 8, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and rain coverage amounts. They will also be interested in any news regarding the Black Sea grain deal or U.S. banking system. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Weather A small system is producing a line of thunderstorms across Missouri and Illinois early Monday morning. The line is forecast to weaken this morning but redevelop in the afternoon across parts of the Midwest and Tennessee Valley where heavy rain and severe weather may occur. Other areas of showers and thunderstorms will pop up across the Plains and Midwest throughout the day as well, a continuation of the disorganized nature of storms that occurred over the weekend.
| Rural Advocate News | Friday May 5, 2023 |
Ag Lenders See Tighter Credit Tied to Regional Bank Collapses OMAHA (DTN) -- With regional banks facing stock-price declines, U.S. senators on Thursday asked community bankers, Farm Credit lenders and representatives from the crop insurance industry about lending stability in agriculture and rural America. Less than a day after Federal Reserve Chairman Jerome Powell expressed support for the banking system with the Fed declaring "the U.S. banking system is sound and resilient," at least two publicly traded regional banks were under pressure from investors. PacWest Bancorp, a California-based bank, saw its share price collapse, and the bank announced it was trying to sell a $2.7 billion loan portfolio. PacWest is now the fourth bank in recent months that is under significant financial pressure. Senators asked bankers about systemic risks within the banking industry and the broader implications for farmers and rural America in a hearing Thursday on agricultural credit and crop insurance held by the Senate Agriculture Subcommittee on Commodities, Risk Management and Trade. Sen. Kirsten Gillibrand, D-N.Y., pointed out the country has seen "three of the four largest bank failures in American history" just since early March. Gillibrand said regulators and the private sector have stabilized the situation "to a point," but she said Congress will need to step in to prevent a further collapse. "It's clear Congress must act with some banking reform to guarantee long-term economic stability in the banking sector or risk similar future events," Gillibrand said. Gillibrand asked if the banking disruptions pose a risk to rural lenders and rural creditors. Jase Wagner, president and CEO of Compeer Financial, a member of the Farm Credit System in Wisconsin, said the impact on credit is real "when you have contagion like you have." The increased spreads in interest rates require more collateral for the risks being taken. That is costing farmers and others in rural money. "The impact is not real acute right now," Wagner said. "It is around the edges, new producers coming in, new loans that are being funded, but it is something we are actively watching." The backstop stemming from bank failures is that everyone else also becomes more conservative with their lending practices, Wagner added. "What you are seeing more broadly is everyone talking about risk, and when everyone is talking about risk, you tend to get more conservative," Wagner said. "So, it's immediately impactful to your young, beginning farmers." Gus Barker, president and CEO of First Community Bank in Newell, Iowa, stressed to senators that the problems affecting the stability of "megabanks" are not systemic to community banks. "We have not seen an impact," he said. "Those megabanks were not typical bank management. We just feel there needs to be a distinguished line drawn in the sand between the risk of those megabanks who are investing in far-out ways of doing business compared to what the community bank model has always been," Barker said. "It's been stable. It's survived everything from world wars to the ag crisis and survived that bank model. We just feel we are stable. We have not seen withdrawals of major deposits or anything like that." Barker added that small lenders and customers also shouldn't have to pay higher risk-based fees because of the financial problems facing those larger banks. "We shouldn't be tagged on to paying for those failures of those people." Gillibrand said she was concerned about regional and smaller banks. She asked if other institutions are seeing "capital flight" to larger banks and "misalignment of interest rates." "We have data and information that they have not reached stability," Gillibrand said, pointing to regional banks seeing declines in their stock prices. Phillip Morgan, CEO of Southern AgCredit, a Mississippi-based Farm Credit lender, said all lenders are concerned any time there is discussion of a credit crunch, "whether it is ag or non-ag, that bothers all of us." Morgan added, "I can tell you Farm Credit is well positioned, well capitalized, and does not have the same concerns, and we're well positioned to continue to support local agriculture." Morgan also said the rapid rise of interest rates over the past 12 months affects every farm operator. A number of long-term real-estate loans will "reprice" this year as the original price expires, he said. "They will be facing much higher interest rate costs," Morgan said, adding some producers will be facing both higher operating costs and real-estate loans. William Cole, a Mississippi crop insurance agent and a farmer representing the Crop Insurance Professionals Association (CIPA) at the hearing, said his customers, "for the most part" were able to secure operating loans this year, but that will become more difficult going forward. "It's just apparent the high rates are going to have a severe impact, especially with the cost of production just dramatically rising," Cole said. James Korin, president of NAU Country Insurance in Minnesota and testifying for the American Association of Crop Insurers, said reinsurance costs for the industry overall are up 40% this year, though that is a bigger issue for property and casualty lines of insurance instead of crop insurance. "There's no doubt the change in the banking industry has impacted capital," Korin said. He added, "We're seeing our cost of capital really go up." Sen. Debbie Stabenow, D-Mich., chairwoman of the Senate Agriculture Committee, also weighed in about the possible impacts on interest rates and credit if the U.S. were to default on its debt obligations. "My bigger worry right now is the economic environment we are in with all of the discussion about default and so on," Stabenow said. Sen. John Boozman, R-Ark., ranking member of the overall Senate Agriculture Committee, asked if any of the bankers or Farm Credit members were now facing more scrutiny. Barker said community banks "have always been scrutinized pretty heavily," but said "our files are up to date," and "our customers are well-positioned. They've had some very good years, and we hope to keep that sustained." Barker added that the farm safety net, such as crop insurance, is critical because bank regulators often ask about it. "That is a question we get asked about every customer from the examiners. Do they have federal crop insurance? As long as we tell them yes, they have much more comfort." FSA LOAN GUARANTEES As part of the farm bill, multiple senators also asked if the borrowing limit on FSA-guaranteed loans should be raised. Sen. Tommy Tuberville, R-Ala., said a new producer trying to start a four-building poultry operation can cost roughly $2.5 million. Both Farm Credit and the Independent Community Bankers of America would like to see FSA-guaranteed loan limits raised from the current $2.03 million to $3.5 million for construction loans and $3 million in operating loans. Barker also suggested those FSA-guaranteed loan limits should be indexed to inflation. "They need to be adjusted upward. The price of land and inputs has just skyrocketed upward for us," Barker said. TAX-EXEMPT BANK LOANS Barker also said Farm Credit has a better funding system because of the bond market, but community bankers are looking for a way to be more competitive with Farm Credit on interest rates. The Independent Community Bankers of America is pitching a bill, the "Access to Credit for our Rural Economy" or ACRE Act, which would provide banks with tax exemptions on interest earned in rural lending -- agricultural real-estate or rural home sales in towns under 2,500 in population. "We've calculated that could be the difference of 1.5% to 2.5% lower rates for our folks, and that is another tool we would love to use for our beginning farmers and our low-income families in our towns," Barker said.
| Rural Advocate News | Friday May 5, 2023 |
Michigan Reps Jump Into AM Radio Discussion Eight Michigan Representatives entered into a campaign to reverse Ford’s decision to remove AM radio from most new models in 2024. The eight reps sent a letter to Ford’s board of directors making a case to keep the legacy band in cars. “Not only is AM still widely listened to for entertainment purposes, especially in rural areas, but it is vitally important for emergency services in times of trouble or natural disaster,” the letter says. “Removing AM capability from future vehicles could jeopardize the safety and livelihood of millions of your customers.” Michigan Rep David Prestin says that Ford’s decision represents “a lack of vision or thought towards national security, our ability to communicate on the most basic level in the future for the unknown things we may have to face. I just find it reckless.” He also points out that AM radio is the backbone of the Emergency Alert System. *********************************************************************************** NCBA Welcomes Senate Action on Lesser Prairie Chicken The National Cattlemen’s Beef Association welcomed the Senate passage of a resolution of disapproval that would stop the listing of the lesser prairie chicken on the Endangered Species Act. The Congressional Review Act Resolution of Disapproval was led by Kansas’ Roger Marshall. “The lesser prairie chicken listing will do little to benefit the bird, but it will succeed in shutting down the voluntary conservation work that is responsible for the species surviving today,” says NCBA Policy Division Director Gene Copenhaver. “This resolution puts flexible, locally-led conservation efforts back at the forefront.” Representative Tracy Mann of Kansas is leading a companion resolution in the House to disapprove the lesser prairie chicken listing. The resolution recently passed the House Natural Resources Committee. NCBA is currently suing the Department of the Interior and the U.S. Fish and Wildlife Service over the listing of the lesser prairie chicken. The lawsuit was filed in Texas in March. *********************************************************************************** NFU Appreciates USDA Funding to Strengthen Food Supply Chain Infrastructure The USDA recently announced the creation of 12 new USDA Regional Food Business Centers, and the National Farmers Union is pleased with the move. “This is the kind of capacity and investment that we need to make meaningful improvements in our food system,” says NFU President Rob Larew. “Providing local and regional access to processing and distribution is one avenue to fight back against the rampant consolidation in the agriculture and food sector.” The new USDA Regional Food Centers will provide national coverage coordination, technical assistance, and capacity building to help farmers, ranchers, and other food businesses access new markets and navigate federal, state, and local resources. “This move provides support for farmers and ranchers to market their products in their own communities, and keeping those resources local is a win for everyone,” Larew says. “This will build resiliency in the food supply and vitality in our rural and agricultural economy.” *********************************************************************************** AEM Looking for Hall of Fame Nominations Nominations are now open for the Association of Equipment Manufacturers’ Hall of Fame. The Hall celebrates the men and women who create the equipment and technologies that help build, feed, and power the world. Since its inception in 1993, the Hall of Fame has inducted 67 individuals who have broken ground, literally and figuratively, on the job sites and farm fields of the world. AEM is looking for nominations for the 2023 induction ceremony, especially individuals that reflect the diverse and inclusive nature of the modern construction and agriculture equipment manufacturing industry. “The oldest member of the AEM Hall of Fame is John Deere, who was born in 1804,” says AEM President Megan Tanel. “A lot has changed since then, and today’s technology would be unrecognizable to Mr. Deere.” The AEM Hall of Fame is accepting 2023 Hall of Fame nominations until Friday, June 16. For more information, go to aem.org. *********************************************************************************** Smithfield Reportedly Closing 37 Sow Farms in Missouri A local Missouri news outlet says that Smithfield Foods plans to close 37 sow farms. An employee who requested anonymity said the closures were to begin on May 1. Smithfield Foods didn’t confirm the story or offer any more details regarding the closures when National Hog Farmer asked for clarification. “We’re always taking steps to enhance our business for consistently strong performance during favorable and unfavorable market conditions,” says Jim Monroe, vice president for corporate affairs with Smithfield. In April, China’s WH Group informed shareholders and potential investors that it was expecting a 56 percent drop in its first quarter 2023 profit outlook, down from $395 million during the same time last year. “Hog raising costs remain elevated while pork prices have been adversely impacted by softer consumer demand,” Smithfield says. The company also says the drop was mainly attributable to the challenging market conditions in the U.S. pork segment. *********************************************************************************** Ethanol Output Rises While Stock Hit Five-Month Low Point The Energy Information Administration says ethanol production rose week-to-week while inventories dropped to the lowest level in five months during the week ending on April 28. Output increased to an average of 976,000 barrels a day. That’s up from 967,000 barrels during the prior week. The Midwest region, which produces the most ethanol in the country, rose to an average of 922,000 barrels a day from 916,000 barrels the previous week. Rocky Mountain output increased to 14,000 barrels a day, 1,000 barrels higher than the week prior. West Coast production also rose by 1,000 barrels a day to an average of 4,000 barrels. Production on the East Coast and Gulf Coast held steady at 12,000 and 24,000 barrels a day respectively. Ethanol inventories during the week plunged to 23.36 million barrels, down from 24.31 million barrels a week earlier, and the lowest levels since the week ending on December 2.
| Rural Advocate News | Friday May 5, 2023 |
Friday Watch List Markets The U.S. Labor Department reports on nonfarm payrolls and the unemployment rate for April at 7:30 a.m. CDT Friday. Traders will keep tabs on the latest weather forecasts from around the world as a new growing season begins in the Northern Hemisphere. They will also watch for any sign of movement on the extension of the Black Sea Grain Initiative and any news regarding the health of U.S. banks. Weather A cluster of storms continues across the Delta Friday morning which could see more development later Friday. The focus for rainfall will be across the Plains and Upper Midwest, though. Some thunderstorms may develop across central and eastern Texas this afternoon and evening, and could be severe, but the more widespread precipitation is expected farther north as a system moving through the West starts to move into the Central Rockies tonight. Showers should increase from Nebraska up into Wisconsin with time, and some severe weather may be possible across Nebraska as well. Showers are not likely to be widespread but will be of some benefit to drier areas.
| Rural Advocate News | Thursday May 4, 2023 |
Farm Sector Chapter 12 Bankruptcies in 2022 Lowest Since 2004 New data from USDA’s Economic Research Service confirms a decline in the farm Chapter 12 bankruptcy rate. In 2022, the Chapter 12 bankruptcy rate reached the lowest level in nearly two decades, with 0.78 bankruptcies per 10,000 farms. Under Chapter 12 bankruptcy, a financially distressed family farmer can propose and carry out a plan to repay their debts fully or partially. The total number of these bankruptcies is an indicator of financial stress in the farm sector. In 2003, the annual bankruptcy rate reached a high of 3.3 per 10,000 farms and then declined to a low of 0.5 per 10,000 farms in 2004. After 2010, the bankruptcy rate declined until 2014 but increased again in 2015, with another peak in 2019 at 2.9 bankruptcies per 10,000 farms. Since then, bankruptcies have declined to the lowest level in two decades after 2004. Wisconsin had the highest rate at 5.66 per 10,000 farms, followed by Nebraska and Kansas. *********************************************************************************** Legislation Seeks to Increase USDA Technical Service Providers Legislation introduced in the House and Senate Wednesday seeks to help address America's shortage of Technical Service Providers at the Department of Agriculture. Technical Service Providers help producers deploy and manage conservation programs through one-on-one assistance. USDA Natural Resources Conservation Service Chief Terry Cosby recently projected his agency would need to hire between 3,000 and 4,000 employees to meet demand for technical assistance. Specifically, the bill would help build the workforce by cutting red tape, streamlining Technical Service Provider certification requirements, and ensuring they are paid the market rate. Representative Abigail Spanberger, a Democrat from Virginia, and Senator Mike Braun, a Republican from Indiana, lead the effort. Spanberger says, “This massive workforce issue is having real effects on the ground — and it’s slowing down the ability of producers to make smart management plans for their land.” Braun adds, “Our nation’s farmers and ranchers play a critical role in conservation, so it is important that they have access to Technical Service Providers.” *********************************************************************************** USDA Announces Finalists for 12 New USDA Regional Food Business Centers The Department of Agriculture Wednesday announced the creation of 12 new USDA Regional Food Business Centers. The centers will provide national coverage coordination, technical assistance, and capacity building to help farmers and ranchers access new markets and navigate federal, state, and local resources. USDA also announced a $420 million Resilient Food Systems Infrastructure Program to fund innovative projects designed to invest in processing and distribution capacity to build resilience across the middle of the supply chain and strengthen local and regional food systems. Agriculture Secretary Tom Vilsack says the efforts will “create new and expanded local market opportunities which will improve farm income.” In September 2022, USDA announced $400 million to fund this initiative and 12 organizations were selected to lead efforts in their region and together serve all areas of the country. Regional Food Centers will target their work to historically underinvested communities. Find the 12 centers and more information on the USDA Regional Food Business Centers Program webpage. *********************************************************************************** Farm Bureau Foundation Fellows Launch Free Digital Skills and Ag Literacy Lessons The 2023 Farm Bureau Foundation Fellows have launched four free Applied Digital Skills lessons dedicated to helping students learn about food, fuel and fiber. The lessons were developed with support from Grow with Google to make digital skills and agricultural literacy more accessible to students across the country, with a focus on rural classrooms. The lessons are part of the Agriculture and Rural Communities Collection, available for free to educators across the United States. Foundation for Agriculture executive director Daniel Meloy says, “Whether you’re a teacher in a rural, urban or suburban classroom, these lessons can be used to teach a broad variety of technical skills while fostering understanding of agriculture.” The lessons were developed over the course of an eight-month fellowship. As part of the program, each Fellow will receive a stipend and Chromebooks for their classroom. For more information, visit the Farm Bureau Foundation website, agfoundation.org. *********************************************************************************** Hershey Company Announces Income Accelerator for Cocoa Farmers The Hershey Company recently announced the launch of its Income Accelerator in the Ivory Coast. The program will support increased incomes for cocoa farming households by providing cash transfers and investments in village savings and loan associations. The Income Accelerator offers a proven, multi-faceted approach to help address cocoa farmer poverty while also supporting sustainable farming practices and mitigating the risk of child labor. As part of the Income Accelerator, Hershey, in partnership with the Rainforest Alliance, will distribute mobile cash transfers of up to $600 per household per year to approximately 5,000 cocoa farming households within its supply chain. These transfers, which will offer an additional source of income for households, will be based on the adoption of sustainable and regenerative farm management practices that increase farm profitability and resiliency to unexpected environmental circumstances. The Income Accelerator is expected to positively impact no fewer than 20,000 households within Hershey's supply chain and related communities. *********************************************************************************** Cargill, Taco Bell, Fish and Wildlife Foundation, Announce Partnership With bold ambitions to operate 10,000 restaurants in the coming years, Taco Bell acknowledges its responsibility to balance global expansion with intentional impact. Taco Bell is now partnering with its long-time supplier Cargill and the National Fish and Wildlife Foundation to implement conservation and regenerative agriculture practices across cattle grazing lands. The partnership is part of Taco Bell's parent company Yum! Brands' efforts to reduce greenhouse gas emissions by nearly 50 percent by 2030. The partnership will support beef producers with technical and financial tools to expand their regenerative ranching practices, from conserving grassland ecosystems to improving river water quality and biodiversity. The commitment from Cargill and Taco Bell will allocate $2 million and will leverage up to $2 million in federal funds for a combined total of $4 million in new grants over the next four years. Taco Bell estimates the partnership will conserve and restore tens of thousands of acres and sequester up to 44,000 metric tons of carbon dioxide equivalent per year in 2030.
| Rural Advocate News | Thursday May 4, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, the U.S. trade deficit for March, first-quarter U.S. productivity and an update of the U.S. Drought Monitor. The Energy Department's weekly report on natural gas storage is at 9:30 a.m. Traders will keep watch over the latest news from Russia, weather happenings and any further news about U.S. bank problems. Weather A cold trough in the East is on its way out and is being replaced by a ridge and warmer temperatures east of the Rockies, though it is a slower process for those farther east. A trough in the Southwest continues to develop showers there and through the Plains on Thursday, with some risk of severe weather from Oklahoma through Texas this afternoon and evening. Those showers should grow into a cluster of heavier rain tonight that will expand north into eastern Kansas and then through the Ozarks overnight.
| Rural Advocate News | Wednesday May 3, 2023 |
Farm Bill Hearing: Farmers Need a Stronger Safety Net During a Senate Agriculture Subcommittee hearing Tuesday, a sorghum farmer told lawmakers farmers need a stronger farm safety net. National Sorghum Producers' Past Chairman, Kody Carson of Texas told lawmakers, "Right now, the farm safety net is not adequate." Carson also reaffirmed support for crop insurance, adding, "the tool has been absolutely critical in helping us manage the ongoing drought conditions decimating the Sorghum Belt." Meanwhile, American Soybean Association Secretary Caleb Ragland of Kentucky called crop insurance the most effective and important component of farm policy for soybean farmers. Ragland says that without crop insurance, “the risk would be more than many farmers and lenders could stand—it certainly would be for me,” while calling for improvements to the Title I farm safety net for soybeans. And National Corn Growers Association First Vice President Harold Wolle told the committee NCGA supports increasing the affordability of crop insurance coverage. Wolle adds, “The individual costs of purchasing coverage can discourage higher levels of coverage.” *********************************************************************************** Ag Economy Barometer: Farmer Sentiment Improves Farmer sentiment improved modestly in April as the Purdue University-CME Group Ag Economy Barometer reversed a two-month decline, up six points to 123. The Current Conditions Index rose three points to 129, while the Index of Future Expectations rose seven points to 120. More producers expect prime interest rates to either hold steady or possibly decline during the next 12 months than felt that way earlier in the year. Perspectives on farmland values shifted somewhat in April, with fewer producers expecting values to decline in the upcoming year and more producers looking for values to rise. When asked about the possibility of a new Farm Bill being passed by Congress in 2023, responses were mixed, with 40 percent of producers saying that passage was at least somewhat likely, while nearly 30 percent of respondents think that passage is at least somewhat unlikely. Meanwhile, 40 percent of respondents considered crop insurance the most important Farm Bill title, followed by commodity programs and conservation. *********************************************************************************** Renderers Support Protein PACT Legislation The North American Renderers Association Tuesday endorsed The Protein PACT: For the People, Animals and Climate of Tomorrow. The legislation is the largest effort to strengthen animal protein's contributions to healthy people, animals, communities, and a healthy environment. NARA endorsed the Protein PACT because the association "recognizes the importance of continuous improvement in the animal agriculture industry and see the benefit that the Protein PACT’s accomplishments will have on our organization, our members, and global consumers.” The organization says The Protein PACT uses transparent, data-based reporting to verify progress and keep the industry accountable for achieving its global goals. The Protein PACT Sustainability Framework encompasses more than 100 metrics developed through extensive collaboration with sustainability experts and supply chain partners. The association joins dozens of other food and Agriculture organizations in endorsing the Protein PACT’s vision to place Animal Agriculture at the center of global solutions. *********************************************************************************** NMPF Submits Milk-Pricing Plan to USDA The National Milk Producers Federation this week submitted to USDA its comprehensive proposal for modernizing the Federal Milk Marketing Order system. The proposal follows two years of examination and more than 150 meetings to build consensus behind updates to a program that last saw significant changes in 2000. The NMPF proposal calls for updating the so-called "make allowance," returning to the “higher of” Class I mover, and updating the Class I differential price system, among other updates. Upon acceptance, USDA will have 30 days to review the plan and decide whether and how to move forward with a federal order hearing to review the plan. NMPF will pursue two other components of its Federal Order proposal outside the federal order hearing process. Those include extending the current 30-day reporting limit to 45 days on forward-priced sales on nonfat dry milk and dry whey, and developing legislative language for the farm bill to ensure the make allowance is regularly reviewed. *********************************************************************************** USDA Providing $130 Million to Farmers Facing Financial Risk The Department of Agriculture this week announced nearly $130 million in additional, automatic financial assistance for qualifying farm loan program borrowers facing financial risk. The announcement is part of the $3.1 billion to help distressed farm loan borrowers provided through the Inflation Reduction Act. Borrowers who received the automatic payments include Farm Service Agency direct loan borrowers whose interest exceeded principle owed on outstanding debts, borrowers who had a balance up to 60 days past due as of September 30, 2022, and borrowers with a recent restructure between February 28, 2020, through March 27, 2023, or who had accepted an offer to restructure on or before March 27, 2023, but had not yet closed that restructure. FSA is accepting distressed borrower assistance requests from direct loan borrowers who missed a recent installment or cannot make their next scheduled installment. USDA will continue to update borrowers and the public about new eligibility criteria. *********************************************************************************** Nutrient Intakes by Consumers Differ from Federal Recommendations U.S. consumers' intakes of several key nutrients differ from Federal recommendations, and those differences are associated with where they obtain food. Researchers from USDA's Economic Research Service examined diet patterns based on density—amounts of nutrients consumed per 1,000 calories—using the latest available national food consumption survey data collected in 2017–18. They compared average consumption densities of six nutrients with what would be needed to match Dietary Guidelines for Americans recommendations. On average, dietary fiber and iron intake densities were more than 20 percent below the recommended level. Meanwhile, calcium densities were closer to the recommended level but still fell short of recommendations. Total fat intake was within 20 percent of the highest recommended percent of calories from total fats, which is 35 percent. The density of saturated fats for food away from home and densities of sodium from all sources were more than 20 percent above the recommended limit.
| Rural Advocate News | Wednesday May 3, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly report of energy inventories, including ethanol production is set for 9:30 a.m. CDT Wednesday. The Federal Reserve concludes a two-day meeting with a widely anticipated interest rate announcement at 1 p.m. Many are expecting a quarter-percent increase in the federal funds target to an upper limit of 5.25%. Weather A storm system continues its slow movement through the northeast where showers will be possible, but most areas of the country are becoming dry. The exit of the system will mean rising temperatures for the next couple of days. In the warmth, isolated showers will be possible for the Central and Southern Plains.
| Rural Advocate News | Tuesday May 2, 2023 |
Farm Sector Real Estate Debt Hits Record High New data from USDA’s Economic Research Service shows farm sector debt tied to real estate is expected to be at a record high of $375.9 billion in 2023. Farm sector real estate debt has been increasing continuously since 2009 and is expected to reach an amount that is 87.5 percent higher in 2023 compared with 2009 in inflation-adjusted dollars. Real estate debt now far outpaces debt that is not secured by a mortgage. Historically, real estate debt and non-real estate debt have trended similarly, but they have diverged in recent years. Non-real estate debt showed an 11.9-percent year-to-year increase in 2014 in inflation-adjusted dollars but declined after 2017. Meanwhile, there has been a continuous increase in real estate debt since 2009. In 2023, real estate debt is expected to be 33.0 percent higher than the ten-year average, while non-real estate debt is expected to be 10.2 percent lower than the ten-year average. *********************************************************************************** USGC Releases 2022/2023 Corn Export Cargo Quality Report The average aggregate quality of U.S. corn samples tested for the U.S. Grains Council’s 2022/2023 Corn Export Cargo Quality Report released this week was better than or equal to U.S. No. 2 on all grade factors. The report is based on 430 export cargo samples collected from corn shipments undergoing federal inspection and grading processes at export terminals. It also provides information on grading, handling and how U.S. corn is moved and controlled through export channels. USGC Chairman Josh Miller says, “International importers and consumers can know that they are making a smart, informed purchase by seeing the exact benefits and characteristics of this year’s crop.” Average test weight found by the analysis was higher than in 2021/2022 and the five-year average, with 93.3 percent of samples at or above the minimum requirements for U.S. No. 1 grade corn, indicating overall good quality. The export cargo quality report is a companion to the USGC 2022/2023 Corn Harvest Quality Report. *********************************************************************************** TFI Releases 2023-2024 Public Policy Priorities The Fertilizer Institute Monday released its list of 2023-2024 public policy priorities for working with the Biden Administration, regulatory agencies, and a closely divided 118th Congress. TFI President and CEO Corey Rosenbusch says, “we are strongly advocating for policies that ensure the fertilizer industry is able to continue feeding the world sustainably though innovation, efficiency, and legislative and regulatory updates that are long overdue.” TFI’s priorities are broken down into seven key areas: Economic Growth & Competitiveness; Transportation & Infrastructure; Environment; Safety & Security; Farm Bill Reauthorization; Permitting & Registration; and Innovation. Those changes include reforming the National Environmental Policy Act. TFI describes the legislation as convoluted, time-consuming, and expensive, regarding its permitting process. As for the Farm Bill, Rosenbusch says it’s “all about conservation and continuing to push for science-backed 4R Nutrient Stewardship adoption by growers and removing the existing barriers to grower adoption.” TFI also wants hurdles removed for biostimulants, a new innovation in agricultural fertilizers. *********************************************************************************** U.S. Marine Fish Stocks Show Improvements in 2022 The National Oceanic and Atmospheric Administration released the 2022 Status of Stocks report last week, outlining U.S. marine fish stocks managed by NOAA Fisheries. In 2022, U.S. fisheries data revealed that 93 percent of stocks are not subject to overfishing and 81 percent are not overfished. These numbers show slight improvements compared to the 2021 figures of 92 percent and 80 percent, respectively. Positive trends were seen this year with the number of stocks on the overfishing list decreasing by two stocks to 24, and the number of overfished stocks decreasing by three stocks to 48. NOAA administrator Rick Spinrad says, “This annual report reveals the U.S. remains a global leader in maintaining the sustainable fisheries that drive the blue economy, support coastal communities and play a key role in marine ecosystems.” The latest data show that U.S. commercial and recreational fishing supports 1.7 million full- and part-time jobs, generated over $253 billion in sales impacts and contributed $79.4 billion to the gross domestic product. *********************************************************************************** FAA Approves Guardian Agriculture Done System Guardian Agriculture recently announced it has received approval from the U.S. Federal Aviation Administration to operate its aircraft nationwide. FAA approval makes Guardian Agriculture the first commercially authorized Electric Vertical Take-Off and Landing in the U.S., allowing Guardian Agriculture to safely operate its systems across the country. Guardian Agriculture Founder and CEO Adam Bercu says, “FAA approval represents an important turning point for American leadership in this fast-growing market." Commercial farmers are rapidly moving away from ground spraying equipment in favor of unmanned autonomous systems. However, the majority of systems available today are too small to provide growers with full-field coverage at a competitive price point. The Guardian SC1 platform - which already has more than $100 million in customer orders - is the only autonomous, electric, aerial crop protection system designed specifically for large-scale agriculture. Guardian Agriculture will begin commercial operations in support of its Wilbur-Ellis customer in California in the coming months as it continues to ramp up its production capacity. *********************************************************************************** Fuel Prices Slide Again: Diesel Reaches 13-Month Low For the second straight week, the nation's average price of gasoline declined, falling 6.3 cents from a week ago to $3.58 per gallon. The national average is up 8.2 cents from a month ago but 59.6 cents per gallon lower than a year ago. The national average diesel price fell 5.3 cents in the last week and stands at $4.07 per gallon, $1.18 lower than one year ago. Oil prices have come under additional selling pressure alongside wholesale gasoline prices, and diesel prices have followed. The latest data shows diesel prices fell to their lowest level in over 13 months as demand remains weak due to concerns over the economy. GasBuddy’s Patrick De Haan says, “With refinery maintenance wrapping up, we should see supplies start to build in the weeks ahead, just in time for the summer driving season, potentially putting more downward pressure on prices.”
| Rural Advocate News | Tuesday May 2, 2023 |
Tuesday Watch List Markets A report on March U.S. factory orders is set for 9 a.m. CDT on Tuesday, the same time as a report on U.S. job openings. The Federal Reserve begins a two-day meeting Tuesday and is expected to conclude with a quarter-percent rate hike on Wednesday. Traders will keep an eye on the latest weather forecasts and digest Monday's Crop Progress numbers from USDA. Weather A storm system continues to spin around the eastern Great Lakes with scattered showers for Tuesday. Temperatures will be on a slow rise Tuesday with temperatures conducive for planting across the Plains up into the Canadian Prairies. Some isolated showers may develop in the southwestern Plains this afternoon but would be very spotty.
| Rural Advocate News | Monday May 1, 2023 |
Biden Administration Allowing Summertime Sales of E15 The U.S. Environmental Protection Agency announced Friday that it will use existing authority to prevent drivers from losing access to lower-cost and lower-emission E15, a higher ethanol blend often marketed as Unleaded 88. “We appreciate Administrator Regan’s timely action to prevent a disruption in E15 availability,” says National Corn Growers Association President Tom Haag (Hayg). “EPA’s action will help address the fuel supply constraints and ensure drivers continue to have access to a lower-cost fuel choice that cuts emissions.” The fuel conditions that warranted EPA taking the same successful step last year are continuing today. Haag says the nation’s corn growers are proud to contribute to an energy and environmental solution that saves consumers money at the pump. Continued access to E15 during the summer months will help relieve ongoing energy supply pressures. When EPA took a similar action last year, drivers saved nearly a dollar per gallon in some locations. *********************************************************************************** U.S. Agriculture Reacts to EPA E15 Emergency Waiver The U.S. Environmental Protection Agency issued an emergency fuel waiver to allow E15 fuel to be sold during the summer driving season. Reaction from some of America’s leading ag and renewable fuel organizations has been positive. “U.S. gas inventories are even tighter than they were last year, and the war in Ukraine continues wreaking havoc on global fuel supplies,” says Geoff Cooper, President and CEO of the Renewable Fuels Association. “We thank the EPA for taking this step.” Emily Skor, CEO of Growth Energy, says, “This is a win for drivers across the nation, who can rest easier knowing they’ll have access to savings on lower-carbon E15 this summer.” Rob Larew, president of the National Farmers Union, says, “Today’s announcement from EPA is good news for farmers and consumers heading into the summer travel season. Drivers will see increased choice and competition while farmers will see more opportunities for their bottom line.” *********************************************************************************** U.S. Trade Consultation Request “Violates Mexican Law” The United States requested trade consultations in March on Mexico’s plan to limit the use of genetically modified corn. Reuters says a top Mexican official called the request an “unacceptable violation” of Mexican law that feeds the interest of giant seed companies. The U.S. is Mexico’s main trading partner and requested the consultations under the U.S.-Mexico-Canada Agreement, which calls for science-based regulations. Mexico’s Deputy Agriculture Minister Victor Suarez says, “The United States’ request to Mexico follows the interests of seed, agrochemical, and other foodproducing oligopolies.” He also points out that seed makers like Bayer, Corteva, ChemChina’s Syngenta, and BASF are winning under U.S. agriculture and trade policies. However, Suarez feels those companies don’t represent all U.S. farmers. The consultations are a first step toward a trade panel that could ultimately mean a ruling calling for placing punitive tariffs on Mexico. Suarez says Mexico’s policy won’t affect U.S. corn farmers at all. *********************************************************************************** Applications Open for NCGA Women and Mentors Program Applications are now open for the third class of the National Corn Growers Association’s Women and Mentors Program on June 22-23 in St. Louis. The program helps women looking to find the next steps of their leadership journey to partner with a mentor who has traveled that path. Mentors help foster leaders of tomorrow and learn how to share the wealth of knowledge and understanding accumulated through years of service. Class members learn how to quiet their inner critic, explore what they can learn from another woman’s leadership journey, and develop an action plan for their own mentorship journey. Each participant also gains a supportive group of peers committed to their success. NCGA officials say everyone leaves the retreat with a concrete action plan and a mentorship pairing to help each other reach their goals. The last day to apply for the program is May 19. For more information, go to ncga.com. *********************************************************************************** U.S. Pork Growing in the Japanese Market National Pork Board representatives recently met with two of Japan’s largest importers of U.S. pork and one of the country’s top retailers. NPB says the meetings were a sign of stronger partnerships and trust established in the market. One of Japan’s largest retailers committed to increasing their purchases of U.S. pork, replacing Canadian pork in the meat case. Also, Japanese authorities are lifting COVID-19 restrictions next month, which is expected to boost the country’s economy. The Japanese market has consistently been proven valuable for U.S. pork exports. In 2022, Japan imported over 534,000 metric tons of American pork, amounting to $1.5 billion, and ended the year as the second-largest value market. The growth of the market can be attributed to its demand for chilled pork and loin products. Japan’s pork demand consists of 62 percent imported products, with the U.S. holding a 24 percent market share in chilled and frozen pork. *********************************************************************************** Fetterman Opposes IRA Funds for Farm Bill Conservation Efforts Late last week, Pennsylvania Senator John Fetterman sent a letter to Senate Ag Committee leadership detailing his opposition to Inflation Reduction Act funding for farm bill conservation efforts. “I strongly oppose any measures that would essentially cannibalize IRA conservation funding in order to pay for the farm bill’s conservation efforts,” Fetterman said in the letter. “The bottom line is that to both support our nation’s agricultural producers and mitigate climate change, we must maintain the Inflation Reduction Act programs and include separate robust agriculture conservation funding in the upcoming farm bill.” Fetterman also says the country can and must do both. The letter was supported by multiple Pennsylvania-based environmental and farming-focused groups. Senator Fetterman says he’ll continue to oppose any effort to move Inflation Reduction Act funding away from its original purpose to get used for farm bill conservation efforts. Farmers in Pennsylvania continue to support funding for voluntary conservation programs.
| Rural Advocate News | Monday May 1, 2023 |
Monday Watch List Markets Back from the weekend, traders will catch up on the news, the latest weather forecasts and international manufacturing indices that start rolling in early Monday. USDA's weekly report of export inspections is due out at 10 a.m. CDT. At 2 p.m., NASS's Fats and Oils report will be out, followed by Crop Progress at 3 p.m. Weather A storm system has built up in the Great Lakes over the weekend and continues to spin on Monday, producing showers across the eastern Midwest into the Northeast, and some breezy winds. Some of the showers may mix with snow in the colder air swirling around the low. The rest of the country should be rather quiet and mild.
| Rural Advocate News | Friday April 28, 2023 |
World Bank: Commodity Prices to Drop Through 2024 Global commodity prices are expected to drop this year at the fastest clip since the beginning of COVID-19. A World Bank report says that clouds the prospective growth of approximately two-thirds of the developing economies that depends on exports. The Commodity Markets Outlook says the drop in prices is expected to bring little relief to the almost 350 million people around the world who are facing food insecurity. While food prices are expected to drop by eight percent this year, they will be at their second-highest level since 1975. Food price inflation is at 20 percent globally, the highest level in 20 years. “The surge in food and energy prices after Russia’s invasion of Ukraine has largely passed due to slowing economic growth, a moderate winter, and reallocations in commodity trade,” the report says. Overall, commodity prices are expected to fall by 21 percent in 2023, relative to last year. *********************************************************************************** House Amendment Preserves Renewable Fuel Tax Credits Clean Fuels Alliance welcomed an amendment to House legislation that would raise the nation’s debt limit and make substantial changes to clean energy tax credits. The amendment would preserve the biodiesel and renewable diesel blenders’ credits as they are written in current law. “The clean fuels industry thanks all the House members who sought to preserve predictability and stability in tax policy,” says Kurt Kovarik, Vice President of Federal Affairs with Clean Fuels. Midwestern House Republicans were also concerned about the bill’s elimination of ethanol tax credits. A manager’s amendment eliminated those provisions that would have eliminated tax credits for biofuels that were part of the Inflation Reduction Act. The amendment added a grandfather clause in a section that eliminates sustainable aviation fuel and alternative fuel tax credits for those engaged in activities who would have received a credit after the Inflation Reduction Act passed and before it was introduced. *********************************************************************************** Ag Groups Testify on Farm Bill Priorities American Soybean Association President Daryl Cates testified before the House Agriculture Committee’s Subcommittee on General Farm Commodities, Risk Management, and Credit. Cates offered ASA’s perspectives on the 2023 Farm Bill and asked for help with two priorities under the subcommittee’s jurisdiction. The first was protecting crop insurance, and the second was improving the Title 1 farm safety net for soybeans. Cates called crop insurance, “The most effective and important component of the farm safety net for soybean farmers.” National Sorghum Producers Chair Craig Meeker also testified during the hearing. “It’s clear that more resources will be necessary to enact a strong farm bill this year as there’s a major shortfall of funding compared to previous bills,” Meeker says. He also reaffirmed his group’s support for crop insurance, noting that he would not be the sixth generation on his family farm without it. Crop insurance has been critical in managing an ongoing drought. *********************************************************************************** From Drought to Flooding in Six Months Last fall, the main topic of discussion with historically-low water levels on the Mississippi River and other navigable rivers. Now, high water levels are presenting a challenge to barge transportation, especially along the Upper Mississippi River levels. Significant snowfall and rain over the past several weeks have resulted in a sizable increase in water levels. Many of the Mississippi River locks between St. Paul, Minnesota, and Quincy, Illinois, have been closed by the high water conditions. Many will likely stay closed until the first and second week of May. Mike Steenhoek, executive director of the Soy Transportation Coalition, says, “Closures of these locks will obviously impede the delivery of any remaining soybeans or grain for the export markets. However, lock closures at this time of year will particularly impact northern fertilizer shipments.” The USDA estimates that 2.4 million tons of fertilizer have been delivered during the first 12 weeks of 2023. *********************************************************************************** USDA Kicks Off Implementation Phase of Partnerships for Climate-Smart Commodities The USDA kicked off the implementation phase for projects funded through the $3.1 billion Partnerships for Climate-Smart Commodities effort. As projects get started, the agency is also launching the Partnerships for Climate-Smart Commodities Learning Network, which will generate key lessons learned as projects get implemented. “Farmers, ranchers, and forest landowners are on the frontlines of climate change,” says Ag Secretary Tom Vilsack. “At the same time, they are uniquely positioned to deliver climate solutions through climate-smart production that reduces greenhouse gas emissions and sequesters carbon.” Vilsack also says through these projects, the agency’s partners are working to create new markets for climate-smart commodities while developing the tools needed to quantify impacts and help producers implement those climate-smart practices on their land. Producers interested in participating in projects can go to the Partnerships for Climate-Smart Commodities Active Project Dashboard to find projects in their areas. For more information on projects, go to usda.gov. *********************************************************************************** Canadian Farmers Planting More Wheat This Year As Canadian farmers gear up for spring planting, they expect to plant more wheat this year and increase crops of canola and soybeans. The University of Illinois’ Farm Policy News says, “Canada’s farmers forecast planting 26.97 million acres of wheat in 2023, six percent higher than 2022 but still well below the 8.2 percent annual increase recorded last year.” The spring wheat area will increase 7.5 percent to 19.39 million acres, durum wheat is predicted to edge up 0.9 percent to just over six million acres, and the winter wheat area is anticipated to jump more than 12 percent to 1.52 million acres. Geopolitical concerns may be behind Canada’s increasing wheat crop. Canada’s farmers are planting the most wheat in 22 years as the war in Ukraine and a significant drought in the U.S. tighten global supplies. Global wheat stocks and vegetable oil supplies are limited by obstacles facing Ukraine’s exports
| Rural Advocate News | Friday April 28, 2023 |
Friday Watch List Markets The Federal Reserve's preferred inflation gauge, the PCE index, will be out at 7:30 a.m. CDT Friday, the same time as the employment cost index for the first quarter and reports on U.S. personal incomes and spending in March. The University of Michigan's consumer sentiment index for April will be out at 9 a.m. Traders will keep up on the latest weather forecasts and pause at 8 a.m., not knowing if USDA has an export sale, a cancellation or neither. Weather A couple of systems are pushing through the country on Friday, producing areas of scattered showers from the Southern Plains to the Northeast and places in between. Some stronger thunderstorms will be possible across Texas later today as well as some breezy winds behind a front across the western Plains.
| Rural Advocate News | Thursday April 27, 2023 |
NCGA Outlines Farm Bill Priorities Corn growers are optimistic that Congress can make key farm bill programs more effective and responsive to the needs of farmers, according to the National Corn Growers Association. NCGA President Tom Haag, a Minnesota farmer, testified to the House Agriculture General Farm Commodities, Risk Management, and Credit Subcommittee. The committee hearing focused on stakeholder priorities for the crop insurance and commodity titles. Haag says, "Corn growers consistently rank crop insurance as the most important program and title of the farm bill. NCGA broadly supports increasing the affordability of crop insurance." Haag also offered recommendations for the commodity title, saying NCGA supports increasing the maximum rate in the Agriculture Risk Coverage County program to provide increased assistance to growers who experience significant revenue losses. Haag says NCGA recommends increasing the coverage level for ARC County to make the program more responsive to revenue losses. NCGA supports the improvement of the Price Loss Coverage program, investment to expand international markets and trade promotion. *********************************************************************************** NCBA Reiterates Importance of Food Safety, Opposes PRIME Act The National Cattlemen's Beef Association Wednesday once again announced opposition to the Processing Revival and Intrastate Meat Exemption, or PRIME Act. Representatives Thomas Massie, a Kentucky Republican, and Chellie Pingree, a Maine Democrat, introduced the bill. The legislation would allow beef processed in a non-U.S. Department of Agriculture inspected facility to be distributed interstate, posing a threat to food safety and consumer trust in beef. NCBA President Todd Wilkinson says, "While the PRIME Act is well-intentioned, allowing uninspected beef to enter the retail market is dangerous to consumers." NCBA supports federal and state meat inspection efforts and has previously supported legislation like the DIRECT Act. That legislation would allow state-inspected beef to be sold interstate in limited quantities, direct-to-consumer, and through e-commerce. Unlike the PRIME Act, these measures would create the necessary paper trail to trace and contain any potential food safety concerns. *********************************************************************************** AEM Calls on Congress to Bolster American Competitiveness The Association of Equipment Manufacturers is mobilizing thousands of industry supporters through its I Make American grassroots campaign. The supporters call on lawmakers to address national priorities, including modernizing the permitting process necessary to build critical infrastructure and boost domestic energy production. Other priorities include ensuring that infrastructure funding moves expeditiously from Washington to urgently needed project sites, and passing a farm bill to guarantee a safe and abundant food supply for all Americans. AEM’s Kip Eideberg says, "Lawmakers must act to ensure that the 2.3 million men and women of our industry can out-innovate and outcompete the rest of the world. The campaign includes 88,000 letters to Capitol Hill. AEM’s I Make America campaign engaged CONEXPO-CON/AGG 2023’s 139,000 attendees to raise awareness for the policies that will strengthen the industry and ensure that equipment manufacturers can continue to make the equipment that builds, powers, and feeds the world. *********************************************************************************** USDA: Meat and Dairy Production Lead Food Sector Sales New data from USDA’s Economic Research Service shows meat processing and dairy product manufacturing are the largest components of food sector sales. Food and beverage manufacturing plants transform raw food commodities into products for intermediate or final consumption by using labor, machinery, energy, and scientific knowledge. These plants accounted for nearly $267 billion or 16.8 percent of sales, shipment values, and revenue from all U.S. manufacturing plants in 2021, according to the latest data from the U.S. Department of Commerce, Bureau of the Census’ Annual Survey of Manufactures. Meat processing is the largest industry group in food and beverage manufacturing, with 26.2 percent of sales in 2021. Meat processing includes livestock and poultry slaughter, processing, and rendering. Dairy product manufacturing, which ranges from fluid milk to frozen desserts, accounted for the second-most sales at 12.8 percent in 2021. Other important industry groups by sales include other foods, beverages, and grain and oilseeds. Other foods include snack foods, coffee and tea, flavorings, and dressings. *********************************************************************************** NFU: Colorado Right to Repair Law a Win for Farmers Across the Country The National Farmers Union calls the signing of Colorado’s Right to Repair law a win for all farmers and ranchers. Colorado Governor Jared Polis signed the Consumer Right to Repair Agricultural Equipment Act this week. NFU President Rob Larew says, "seeing a bill like this cross the finish line is a testament to the persistence of our members and the need for this issue to be addressed nationally." Major farm equipment manufacturers have refused to make the software tools necessary to repair modern tractors, combines, and other farm equipment available to farmers and independent mechanics. This leaves farmers no choice but to take their broken equipment to licensed dealerships, which has led to repair delays and inflated repair costs. Right to Repair is a key issue in NFU's Fairness for Farmers campaign, which aims to build fairer and more competitive agricultural markets, and to address the monopoly crisis in agriculture. *********************************************************************************** USDA’s CLEAR30 Enrollment Open Farmers and landowners with certain expiring Conservation Reserve Program contracts can receive additional rental incentives and extend that land’s role in conservation for another 30 years. The Department of Agriculture has opened the signup period for its Clean Lakes, Estuaries, And Rivers enrollment, known as CLEAR30, now through July 31, 2023. CLEAR30 is a part of the CLEAR initiative, which prioritizes water quality practices as a part of Continuous CRP enrollment, and is one of several CRP enrollment opportunities. CLEAR30 allows producers and landowners enrolling certain water quality practices to enroll in 30-year contracts, extending the lifespan and strengthening the benefits of important water quality practices on their land. Like other CRP enrollments, CLEAR30 is a voluntary, incentive-based conservation opportunity offered by USDA’s Farm Service Agency. To sign up for CLEAR30, landowners and producers should contact their local USDA Service Center by July 31, 2023.
| Rural Advocate News | Thursday April 27, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as U.S. weekly jobless claims, first-quarter U.S. GDP and an update of the U.S. Drought Monitor. An index of U.S. pending home sales in March is out at 9 a.m., followed by the Energy Department's natural gas storage report at 9:30 a.m. Weather A system is moving across the South with areas of thunderstorms and heavier rainfall. This system continues to press eastward and may contain some severe storms near the Gulf Coast. To the north, another system is moving through the Northern Plains and will produce scattered showers as its cold front dives south throughout the day. Frosts occurred in the eastern Midwest again this morning, yet another day of risk for more-advanced wheat and emergent corn and soybeans.
| Rural Advocate News | Wednesday April 26, 2023 |
Number of U.S. Farms Continues to Decline New data released Tuesday by USDA’s Economic Research Service shows the number of U.S. farms continues to decline. After peaking at 6.8 million farms in 1935, the number of U.S. farms and ranches fell sharply through the early 1970s. Researchers say the rapidly falling farm numbers in the mid-20th century reflect the growing productivity of agriculture, increased mechanization, and increased nonfarm employment opportunities. Since 1982, the number of U.S. farms has continued to decline, but much more slowly. In 2022, there were 2.0 million U.S. farms, down from 2.2 million in 2007. Similarly, the acres of land in farms continue a downward trend with 893 million acres in 2022, down from 915 million acres ten years earlier. The average farm size in 2022 was 446 acres, only slightly greater than the 440 acres recorded in the early 1970s. The data comes as USDA this year predicts net farm income at $136.9 billion in calendar year 2023, a decrease of $25.9 billion relative to 2022. *********************************************************************************** Inflation Impacting Organic Fresh Produce Sales Inflation continued to impact organic fresh produce sales in the first quarter of 2023. Overall dollar sales grew by slightly less than one percent, and volume declined by 3.4 percent from the same year-over-year period. The data was released by the Organic Produce Network this week and included in its Q1 2023 Organic Produce Performance Report. Overall, the total produce department gained 2.6 percent in dollars for Q1 2023 compared to the same period in 2022 and declined by 1.3 percent in volume. Sales of organic fresh produce totaled nearly $2.4 billion for the first quarter of 2023, while overall volume topped 703 million pounds. Conventional produce dollars rose higher than organic dollars by about two percent and declined in volume by a smaller degree than organic. Current trends show both conventional and organic produce volume shrinking year over year. However, while volume for conventional produce is below 2020 and organics are on par with 2020, both are consistently gaining in dollars. *********************************************************************************** Coalition Urges Protection of IRA Conservation Funds in Farm Bill A coalition of lawmakers urges the House Agriculture Committee to protect the nearly $20 billion from the Inflation Reduction Act for climate-smart agriculture programs in the upcoming 2023 Farm Bill. The House Sustainable Energy and Environment Coalition made the request this week in a letter to Committee leadership. The letter states, “The $19.5 billion in Inflation Reduction Act investments for Farm Bill Title II conservation programs and technical assistance within USDA is critical to fighting climate change, and the next Farm Bill represents a significant opportunity to strengthen climate-resilience.” The letter was signed by coalition co-chairs, Representatives Chellie Pingree and Kim Schrier, along with the 16 other members of the task force. The letter explains that because agriculture also holds the potential to store significant quantities of carbon, it represents a unique opportunity to tackle climate change. The coalition was founded in January 2009 to advocate for policies for clean energy innovation, environmental protection, and policies that address global climate change. *********************************************************************************** USDA Proposes Changes to Salmonella Regulations for Select Poultry Products USDA's Food Safety and Inspection Service proposed to declare Salmonella an adulterant in breaded stuffed raw chicken products. Under the proposal, FSIS would consider any breaded stuffed raw chicken products that include a chicken component that tested positive for Salmonella at one colony forming unit per gram before stuffing and breading to be adulterated. FSIS also proposes to carry out verification procedures, including sampling and testing the chicken component of breaded stuffed raw chicken products prior to stuffing and breading, to ensure producing establishments control Salmonella. Agriculture Secretary Tom Vilsack says the proposal "represents the first step in a broader effort to control Salmonella contamination in all poultry products." The announcement is part of USDA's proposed regulatory framework to reduce Salmonella infections linked to poultry products, released in October 2022. The Centers for Disease Control and Prevention estimates that Salmonella bacteria cause approximately 1.35 million human infections in the United States every year, with 23 percent attributed to poultry consumption. *********************************************************************************** USDA APHIS Announces New Strategic Plan USDA's Animal and Plant Health Inspection Service Tuesday released a new five-year strategic plan for the agency. The plan incorporates input received from stakeholders on the strategic framework published in June 2022. The plan includes six strategic goals, outlining the objectives and performance measures that set the direction for the agency. The goals focus on protecting agriculture from plant and animal diseases and pests, positioning the agency's workforce to better meet current and future challenges, delivering solutions that reduce the impacts of zoonotic and emerging diseases, and ecosystem changes, such as climate change, expanding safe trade, managing wildlife diseases, and promoting the welfare of animals. The Animal and Plant Health Inspection Service protects the health of U.S. agriculture and natural resources against invasive pests and diseases, regulates genetically engineered crops, administers the Animal Welfare Act, and helps people and wildlife coexist. APHIS also certifies the health of U.S. agricultural exports and resolves phytosanitary and sanitary trade issues. *********************************************************************************** Vroom Joins Stratovation Group Board Stratovation Group Tuesday announced the addition of Jay Vroom to its Board of Advisors. After retiring as President and CEO of CropLife America, Vroom continues to be active as an agricultural leader and consultant to numerous national agricultural organizations. Vroom says, “Stratovation is bringing exciting new energy to the food and ag market with innovative approaches to both research and strategic advice for clients.” Vroom joins other executives on the Stratovation Group Board of Advisors, including Missouri Farmer Blake Hurst; Russ Green, managing director of MACKAYBEN; Kristen Snow, CEO of Level D&I; Jenn Wells, president of TalentID; and Ward Hill, CEO of Candor Hill. Stratovation Group Chief Operating Officer Mace Thornton says of Vroom, “He’s the kind of person who cares and you want to have in your corner.” Stratovation Group provides market research and intelligence, strategy and consulting, marketing and branding, along with web content services to the agricultural sector.
| Rural Advocate News | Wednesday April 26, 2023 |
Wednesday Watch List Markets A report of U.S. durable goods orders in March will be watched at 7:30 a.m. CDT Wednesday as the market is wary of a possible slowdown in the economy. The U.S. Energy Department will have its weekly inventory report at 9:30 a.m., including ethanol production. As usual, the latest weather forecasts will also be of interest. Weather A storm system has been and continues to produce heavier rainfall in the Southern Plains on Wednesday. The rain does come with a risk of severe storms, mostly across parts of central Texas, but the heavy rain should reduce the impacts of the deep drought that have gripped the region. Still, one storm will not eliminate drought. Other showers will move across the Northern Plains and Canadian Prairies throughout the day as well. Cold temperatures remain in place with frosts this morning and another day of risk tomorrow across the eastern Midwest.
| Rural Advocate News | Tuesday April 25, 2023 |
Court issues another blow to WOTUS Another day, another ruling against the Biden Administration’s Waters of the United States rule. This time the Sixth Circuit Federal Court of Appeals issued a stay on enforcing the rule in Kentucky until May 10. That means WOTUS is now the law of the land in only 23 states. Kentucky Attorney General Daniel Cameron says the ruling stops the Biden administration from enforcing what he considers to be a burdensome rule. “This is an important win for Kentuckians, especially our farmers, who were being unnecessarily burdened by these new restrictions,” Cameron says. “We are grateful to the court and will be working to make this ruling permanent in the weeks and months ahead.” A federal judge had previously denied a request by the State of Kentucky and the Kentucky Chamber of Commerce to issue an injunction against WOTUS. The State and Chamber then asked the appellate court to issue a stay pending their appeal. In their ruling, Circuit Court Judges Ralph Guy, Raymond Kethledge and John Bush said they granted the stay because the federal government failed to identify any particular interest in immediate enforcement of WOTUS. “Given the circumstances, an administrative stay is necessary to preserve the status quo and to provide us with the opportunity to give reasoned consideration to the plaintiff’s motion for an injunction pending appeal,” the judges said in their ruling. This is the latest in a series of legal blows against WOTUS. In March, a federal court judge issued an injunction halting the rule in Texas and Idaho. On April 12, a North Dakota District Court Judge issued an injunction against the law in 24 additional states. While multiple lawsuits continue to make their way through various courts, all eyes remain on the Supreme Court and its ruling in the Sacket v. EPA case. That ruling is expected by early summer. Many observers believe the court’s decision could significantly limit EPA’s regulatory authority.
| Rural Advocate News | Tuesday April 25, 2023 |
AFBF: Families Deserve Truth in Food Labeling America's families deserve to know what they're buying when shopping in the dairy aisle, according to the American Farm Bureau Federation. AFBF Monday filed comments with the Food and Drug Administration. The comments call on the agency to enforce food labeling standards for dairy substitute products and enforce existing prohibitions on the misleading labeling of nut- and other plant-based beverage products as "milk." AFBF supports a consumer's right to access dairy-free products, but one in four Americans, 83 million people, are confused or have been misled about whether dairy alternatives contain milk, according to a survey used by FDA. AFBF Public Policy Vice President Sam Kieffer says, "Consumers know the healthiness of dairy labels such as 'milk' and may infer that any product bearing this term possesses the same or an equivalent nutritional profile." AFBF is urging FDA to require non-dairy products to be labeled accurately, as is required in several markets outside of the U.S. For instance, "almond milk" is labeled "almond beverage" in Canada. *********************************************************************************** USDA Announces New National Institute of Food and Agriculture Director The Department of Agriculture Monday announced the appointment of Manjit K. Misra as the new Director of the National Institute of Food and Agriculture. Agriculture Secretary Tom Vilsack says, “Dr. Misra is an esteemed scientist and educator whose devotion to studying and sharing his knowledge of seeds with the world will benefit society and inspire generations to come.” Before joining USDA, Dr. Misra served as a Professor of Agricultural and Biosystems Engineering at Iowa State University. For more than 30 years, he was Director of the university’s Seed Science Center. The center has administered the National Seed Health System, authorized by USDA's Animal and Plant Health Inspection Service, since 2001. Dr. Misra also was founding Director of the Iowa State’s Biosafety Institute for Genetically Modified Agricultural Products. The NIFA Director leads the agency’s work in advancing agricultural research, education, and extension to solve societal challenges. Dr. Misra will start his new role on Monday, May 8, 2023. *********************************************************************************** Winter Cover Crops Could Reduce Nitrogen in Drainage Water As Corn Belt states seek ways to curb nitrogen flow from farms into the Gulf of Mexico, new research suggests winter cover crops can help. Research from the University of Illinois finds widespread planting of cereal rye in Illinois could reduce nitrate in the state's tile drainage water by 30 percent. The team simulated both cover crop planting and fertilizer timing under real climatic conditions in Illinois between 2001 and 2020. They used a crop simulation model known as Decision Support System for Agrotechnology Transfer, which allows multi-year growth projections for more than 42 crops. Two management implications were revealed in the study. One is that farmers should apply a winter cover crop, such as cereal rye, to reduce tile water flow and nitrate loss by 25 and 30 percent, respectively. The data also reinforced that farmers should switch to spring fertilization, if possible. Cover crop adoption remains low in Illinois and the Midwest despite the availability of cost-sharing programs and growing evidence touting benefits. *********************************************************************************** California Lawmakers Request Disaster Relief for Farmers A coalition of California lawmakers Monday requested a disaster recovery package to aid California farms and ranches devastated by historic storms earlier this year. The coalition, which includes Representatives Jim Costa, Jimmy Panetta and Zoe Lofgren, made the request in a letter to House leadership. The letter states, “We, therefore, request a disaster recovery package be swiftly put together to allow the rebuilding and recovery process to begin,” From December 27, 2022, to January 16, 2023, California had nine atmospheric rivers–each of which held as much water as a hurricane–producing powerful storms. Areas of California saw more than $500 million in estimated flood and storm damage to agricultural operations. Subsequent storms in California from February through March complicate recovery efforts further–with claims filed with the Farm Service Agency already numbering more than 1,000 and assessments still ongoing. California has more agricultural production than any other state in the union, with nearly 70,000 farms operated on 24.3 million acres. *********************************************************************************** USDA: Number of Limited-Service Restaurants in Rural America Growing The food-away-from-home retail landscape continues to evolve. USDA’s Economic Research Service recently examined the changing food-away-from-home landscape in nonmetropolitan counties between 1990 and 2019, with a focus on the most rural counties. As of 1990, full-service restaurants were the most common restaurant type, making up 76 percent of all food-away-from-home establishments in these counties. However, over the last several decades, the composition shifted. While full-service restaurants remain the most common in rural counties, their prominence has fallen from about 75 percent of establishments to about 50 percent of establishments in 2019. By contrast, quick-service restaurants have become increasingly popular. Quick-service restaurants accounted for 18 percent of the total number of establishments in rural counties in 1990 but have since doubled, making up 36 percent of all food-away-from-home establishments in 2019. USDA researchers conclude that the shift could affect overall food options available for consumers in these rural areas. *********************************************************************************** Sorghum Bran Rises as an Ingredient for Enhancing Gluten-Free Bread Sorghum bran, often a low-cost byproduct of sorghum milling, can enhance gluten-free bread's nutritional value without compromising its flavor, according to a new study. USDA’s Agricultural Research Service studied sorghum bran to improve gluten-free foods. One of the USDA researchers says, “we used optimization models to create a gluten-free bread with enhanced dietary fiber while preserving other desirable bread attributes such as color, texture, and flavor.” The study found that people liked the gluten-free bread that contains 14.2 percent sumac sorghum bran. According to the National Institutes of Health, about two million people in the United States have celiac disease, an autoimmune condition, and must avoid dietary gluten, a protein found in wheat, rye, and barley. Additionally, over 20 percent of U.S. consumers purchase gluten-free products without a medical reason. The potential health benefits provided by tannin-containing sorghum bran in gluten-free foods can benefit consumers who must avoid gluten as well as those seeking other food options.
| Rural Advocate News | Tuesday April 25, 2023 |
Tuesday Watch List Markets Traders will keep up with the latest weather forecasts and pause at 8 a.m. CDT Tuesday for a possible export sales announcement. Reports on U.S. new home sales in March and consumer confidence in April will both be out at 9 a.m. USDA's monthly report of cold storage follows at 2 p.m. Weather A storm system will enter into the Southern Plains on Tuesday, with increasing coverage and intensity of showers and thunderstorms throughout the day, providing some relief for the hardest-hit drought areas in the country. Colder temperatures continue east of the Rockies, limiting fieldwork and planting.
| Rural Advocate News | Monday April 24, 2023 |
Natural Gas May Get More Expensive in the Future Natural gas is an important source of energy for U.S. farms. While U.S. natural gas futures prices have fallen sharply recently, CoBank says higher prices and increased volatility could be on the long-term horizon as the energy transition accelerates and European markets respond to recent supply constraints. Rising U.S. exports of liquefied natural gas, fewer opportunities for fuel switching between coal and gas, and supply chain bottlenecks may contribute to higher domestic energy costs in the future. “Over the past 100 years, the U.S. has been a natural gas island with domestic supply sufficient to meet the nation’s requirements,” says a CoBank report. “From a pricing perspective, domestic consumers benefited from their proximity to natural gas reserves and experienced only brief periods of high prices.” However, as natural gas production expanded, it became necessary for exports to grow, increasing potential price volatility as the U.S. and EU markets became more connected. *********************************************************************************** Consumers Save 25 Cents a Gallon With E15 A new analysis from the Renewable Fuels Association shows American drivers saved an average of more than 25 cents per gallon since the beginning of 2022 with E15. RFA analyzed more than 3,000 actual pump prices for E15 and E10 submitted by drivers to E15prices.com. The average of 1,520 prices reported for E10 was $3.69 per gallon, while the average for corresponding E15 prices was $3.41 per gallon. Thus, the average discount for E15 was 27 cents per gallon or 7.4 percent. “The review of prices submitted by drivers shows lower-carbon E15 is providing real savings for American families,” says RFA President and CEO Geoff Cooper. “At a time when U.S. drivers were facing record high gas prices, this report confirms that E15 delivered relief at the pump.” As a result, Cooper’s group is urging the administration to carefully review data as it considers allowing the sale of E15 this summer. *********************************************************************************** FDA Extends Comment Period on Plant-Based “Milk” Labeling The U.S. dairy industry is concerned about plant-based milks in grocery stores carrying the label “milk.” The Food and Drug Administration announced it is reopening the public comment period on draft guidance for labeling plant-based products. “The FDA is reopening the comment period in response to requests from industry stakeholders for more time for interested people to develop and submit comments,” the agency says. Food Safety News says the draft recommendations were initially published in February and are for industry comments on naming plant-based beverages that are marketed and sold as alternatives to milk. The draft guidance also recommends voluntary nutrient statements for labeling some of the plant-based milk alternatives. Products made from plant materials like tree nuts and legumes are often labeled “milk.” The FDA’s draft guidance from February doesn’t apply to other plant-based dairy alternatives like plant-based cheese or yogurt alternatives. Interested parties can submit their comments at regulations.gov. *********************************************************************************** China Aims for More Self-Sufficiency in Food Production China is one of the biggest trading partners for the U.S. However, the South China Morning Post says the Southeast Asian nation may be attempting to change that. The country aims to increase soybean production this year in an attempt to become more self-sufficient and import less food. Escalating geopolitical tensions are one of the big reasons for the change. China will try to increase its national soybean yield by 11 pounds per mu, which is a Chinese unit of land measurement equal to approximately 0.165 acres. China imports more than 80 percent of the soybeans used to feed its people and livestock, and shipments come mainly from Brazil and the U.S. That heavy reliance on imported commodities has raised significant governmental concerns about its food security. However, Chinese farmers appear less motivated to grow beans than last year because of the low market price of soybeans and their low benefits. *********************************************************************************** Lamb Board Releases Final Video in Lamb Quality Series The American Lamb Board released the final video in its five-part series emphasizing lamb quality. The final video’s title is “Retail Meat Yield.” The overall goal of the video series is to help the U.S. lamb industry provide a consistently high-quality product for Americans’ dinner plates. “By emphasizing lean meat growth in U.S. sheep, we can make lambs with more muscle and less fat and improved yield and value,” says Peter Camino, ALB Chair. “That increases our commercial lamb industry competitiveness with imported lamb and other animal protein sources.” He also says it’s in the best interest of progressive sheep producers to produce a protein product that consistently meets consumers’ expectations and delights their taste buds.” Trim, muscular lambs harvested at the appropriate time return more value for the entire U.S. sheep and lamb industry. “Retail Meat Yield” is available at LambResourceCenter.com or on the American Lamb Board’s YouTube channel. *********************************************************************************** Corn, Soybean Export Sales Drop Data from USDA shows that corn and soybean sales to overseas buyers declined in the seven days ending on April 13. Exporters sold 312,400 metric tons of corn for offshore delivery for 2022-2023, down 41 percent from the prior week and 79 percent from the four-week average. The top three buyers were China, Saudi Arabia, and Colombia. Exports rose 42 percent to 1.3 million metric tons. USDA says soybean sales were down 73 percent week-over-week to 100,100 metric tons for 2022-2023. The top three buyers were the Netherlands, Mexico, and China. The USDA report says exports dropped 15 percent week-over-week to 582,800 metric tons. Wheat sales improved 91 percent from the prior week and 93 percent from the four-week average, coming in at 259,000 metric tons. South Korea was the top wheat buyer, followed by Taiwan and the Philippines. Overall exports for the week dropped 28 percent to 202,800 metric tons.
| Rural Advocate News | Monday April 24, 2023 |
Monday Watch List Markets Starting a new week, traders will check the latest weather forecasts and be attentive to any news affecting outside markets. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Recent concerns include planting in the Northern Plains, falling soybean prices in China and the condition of Brazil's corn crop. Weather A trough of low-pressure overhead continues cold temperatures across most areas east of the Rockies Monday, including some frosty temperatures this morning as far south as Oklahoma and Tennessee. A small trough moving down the Rockies will develop showers in the Southern Plains later today, which will be enhanced over the next couple of days, bringing optimism for those in drought.
| Rural Advocate News | Friday April 21, 2023 |
U.S. Government Planning Year-Round Sales of E15 Next Year The Biden administration is planning to begin year-round sales of E15 in 2024. Oil Price Dot Com says the Environmental Protection Agency feels the move will help reduce the retail price of fuel. Eight Midwestern states originally asked the EPA for waivers to provide E15 fuel this summer. EPA chief Michael Regan says the agency studied if they could make the change this year but decided there wasn’t enough time to allow for final adequate rule-making. Regan told the House Agriculture Committee that the agency will look into issuing temporary emergency waivers to allow sales of E15 this summer. The EPA proposed a rule in March that would allow year-round sales of E15 beginning in 2024. “There would be a significant disruption to consumer pricing and the like if we moved too quickly in 2023,” Regan says. “We are confident year-round E15 sales will be ready to go in 2024. *********************************************************************************** Oklahoma Signs Trade Pact with the UK British Trade Minister Nigel Huddleston signed a trade deal with the state of Oklahoma during a recent trip to Washington, D.C. Oklahoma Governor Kevin Stitt says the pact will focus on increasing trade through wider economic development on both sides of the Atlantic Ocean. It will also maintain a focus on reliable and affordable energy. As Oklahoma and the UK grow their economies through increased trade and development cooperation, that will strengthen businesses and create jobs on each side. The agreement will also allow the sides expand academic and research ties, as well as together in agriculture and food production. “Both the United Kingdom and Oklahoma share the same vision for providing reliable, affordable energy for our citizens,” Stitt says. “We can learn a lot from each other.” After the signing, Huddleston said, “I’m delighted that we’ve taken an important step forward in deepening our commercial and economic ties with Oklahoma.” *********************************************************************************** U.S. Dairy Leading on Climate Coalition The National Milk Producers Federation and the U.S. Dairy Export Council have signed a set of principles and a new partnership with National Agricultural Organizations from several other countries. The goal is to constructively engage governments and international organizations around the world on the issues of livestock, agriculture, climate, and trade. The countries in the new partnership include Argentina, Brazil, Paraguay, Uruguay, Chile, Bolivia, and Colombia. USDEC and the NMPF will coordinate and support engagements with government officials and international organizations in promoting policies that encourage sustainable productivity growth while taking into consideration the unique needs of the livestock industry as well as profitability for farmers. The U.S dairy groups point out that, “Far too often, global convenings and climate proposals reflect ideologies at the expense of science, ignore any progress that the industry already made in reducing emissions, and try to impose one-size-fits-all solutions on industries they don’t fully understand.” *********************************************************************************** Smithfield Foods Wins Environmental and Safety Awards The North American Meat Institute recently held its 2022 environmental awards and worker safety recognition programs. Smithfield Foods won awards for its environmental and safety achievements. “Protecting the environment, including decreasing our carbon footprint, implementing water conservation strategies, and reducing packaging have all been Smithfield priorities for decades,” says Stewart Leeth, chief sustainability officer for Smithfield. “These priorities are all part of our constant commitment to producing good food the right way.” Five Smithfield facilities were recognized with NAMI’s environmental recognition awards, which acknowledge commitment to continuous environmental improvement through the development and implementation of Environmental Management Systems. Forty of the company’s facilities were recognized with Tier 4 awards, the highest recognition in the category. Also, 29 Smithfield locations earned the organization’s highest worker safety recognition awards. Smithfield earned an honorable mention in the DEI category for its industry-leading programs that attract and retain minority and underrepresented employees and customers. *********************************************************************************** Legislation to Improve Flexibility of Farmland Conservation Program Senators Michael Bennett of Colorado and Roger Marshall of Kansas introduced the Conservation Reserve Enhancement Program Improvement Act. The bill would provide the flexibility family farmers and ranchers need to conserve water on working lands while fairly compensating them for retiring their water rights or limiting their water use. “With the CREP Improvement Act, we can give farmers the flexibility they need to conserve their water supply and pass their operations to their kids and grandkids,” Bennett says. The act would improve the CREP program in several ways, including directing USDA to allow dryland agricultural uses on CREP acreage where appropriate. Other improvements include specifically adding dryland crop production and grazing to the list of appropriate conservation practices for the CREP program. “Time and again, we hear USDA is being too rigid in their interpretation of good programs, and this bill will help give farmers and ranchers more flexibility,” Marshall says. *********************************************************************************** Iowa Legislature Passes Bill Allowing Raw Milk Sales It’s taken years, but the Iowa Legislature gave its final approval on a bill that would allow Iowa residents to buy fresh-from-the-farm raw milk. After several failed attempts, the state Senate approved the final bill 37-13 and sent it to Governor Kim Reynolds for her signature. The bill previously passed the Iowa House with amendments. It allows producers to sell unpasteurized milk from their farms directly to Iowa residents, as well as cheese, yogurt, ice cream, and other raw milk products. “I call it the fresh milk bill,” says Senator Jason Schultz, the bill’s manager on the Senate floor. He told the Des Moines Register that he’s waited 17 years for a raw milk bill to get through the Iowa legislature. The bill’s supporters say raw milk tastes better and has more nutrients. Opponents say it can contain bacteria that are dangerous to children and could spark a public health outbreak.
| Rural Advocate News | Friday April 21, 2023 |
Friday Watch List Markets After two days of bearish risk-off selling, traders may be a little touchy at the end of the week, but Thursday's economic news was not encouraging. Traders will continue to keep watch over the latest weather developments and any talk of what the Federal Reserve will do on May 3. At 2 p.m. CDT, USDA will issue the cattle on-feed report for April 1, the only significant report of the day. Weather A storm system spinning in northern Minnesota is producing scattered snow showers across the Northern Plains and Upper Midwest, which may come in short, heavy bursts at times throughout the day. A front is bringing showers from far east Texas to Indiana that will be pushed eastward throughout the day. Cold temperatures are filling in behind the front, which will lead to some frosty morning temperatures in the Plains over the weekend.
| Rural Advocate News | Thursday April 20, 2023 |
Continuing Contract Negotiations at West Coast Ports Concerning Increasing attention is getting devoted to the West Coast port contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union. The concern is because of the recent and continued slowdowns and temporary work stoppages at the Ports of Los Angeles and Long Beach. “Given how the tension between the two parties appears to be increasing, this topic will likely remain a significant point of discussion for the foreseeable future,” says Mike Steenhoek (STEEN-hook), executive director of the Soy Transportation Coalition. A recent work stoppage from April 6 to April 7 at both ports and the subsequent slowdowns were “deliberately disruptive,” according to the PMA, the group that represents 70 terminal operators. The two parties have been negotiating a new five-year contract since July 1, 2022. These negotiations don’t apply to the bulk of exports of soybeans and grain from Pacific Northwest ports, which operate under separate contracts. *********************************************************************************** Farm Lending Slows as Interest Rates Rise Growth in farm lending activity at commercial banks was limited in the first quarter of 2023 as interest rates climbed higher. The Kansas City Fed says alongside additional increases in the federal funds’ rates, interest rates on farm loans rose sharply. The rapid rise has shifted the range of rates offered to borrowers considerably higher. Non-real estate farm loan volumes decreased about 10 percent from the previous year in the first quarter of 2023, following average growth of 15 percent in 2022. Lending activity was pushed down by fewer new loans and smaller-sized operating loans. The outlook for farm finances remains favorable alongside elevated commodity prices, but higher interest rates, increased production costs, and drought remain key ongoing concerns. Strong farm income during recent years has bolstered liquidity for many producers and supported historically strong farm loan performance. Despite higher interest rates, the availability of credit remains strong at agricultural banks. *********************************************************************************** USCA Affirming Safety, Transparency of Beef Supply Chain The U.S. Cattlemen’s Association responded to efforts in the Missouri State Legislature to regulate products sold, distributed for use, or administered to a person that are designed to alter their genome. Missouri House Bill 1169 attempts to implement a regulatory framework for labeling products that could act as “gene therapy” or that could potentially impact, alter, or introduce genetic material or a genetic change in the user. This came about because of concerns that mRNA vaccines are being introduced into the nation’s cattle supply. “The USCA strongly supports truth in labeling on consumer goods and full transparency throughout the supply chain,” the group said in a statement. “Currently, there are no mRNA vaccines licensed for beef cattle in the U.S..” Similar legislation is also being introduced in Tennessee, Arizona, and other states. The USCA will be forming a task force to develop a fact- and science-based assessment of the issue. *********************************************************************************** WOTUS Veto Override Fails in Congress The House of Representatives was unsuccessful in getting enough votes to override President Biden’s veto of legislation undoing a rule defining the Clean Water Act’s jurisdiction. The vote failed 227-196 and didn’t meet the two-thirds requirement for overriding a presidential veto. Successful Farming says Republicans persuaded ten Democrats to vote against the Biden EPA’s rule, including House Ag Ranking Member David Scott (D-GA) and Rep. Sanford Bishop (D-GA). The rule specified what wetlands, streams, and other waterways qualify for federal protection as Waters of the United States. Critics like farmers, land developers, and construction companies have called the policy “extreme government overreach.” In March, both the House and Senate passed a disapproval resolution with bipartisan support that would have scrapped Biden’s Waters of the U.S. Rule. Two federal judges have issued preliminary injunctions against implementing the WOTUS rule in 26 states while lawsuits are heard regarding the validity of the regulation. *********************************************************************************** The Number of Dairy Herds Fell in 2022 A USDA report says roughly six percent of U.S. dairy farms quit milking cows in 2022, but that was a slower rate of decline than during the past five years. Twenty years ago, there were 70,375 dairy herds in the country. In 2022, there were 27,932 herds, down from 29,842 in 2021. Calendar-year 2022 saw an exit of 1,910 dairy herds across the nation, which was about six percent of the country’s dairy operations. That compares to a loss of 1,794 herds nationwide, or 5.7 percent of the country’s total, in 2021. However, the decline was larger during the previous three years. Over the past two decades, the U.S. lost an average of 2,300 dairy herds per year. Meanwhile, dairy cow numbers dropped slightly. The average herd size is growing, and per-cow and total milk production have increased. The average dairy herd size reached a record high of 337 head in 2022. *********************************************************************************** NCBA Files Comments on USDA Traceability Rule The National Cattlemen’s Beef Association filed comments on the USDA’s proposed traceability rule. The rule would emphasize the importance of electronic animal identification to protect the cattle industry from the threat of a foreign animal disease. USDA’s proposed rule would apply to cattle 18 months or older only when moving interstate. “Traceability is about risk protection and ensuring we have the tools to quickly identify and respond to an outbreak while strengthening consumer trust in our high-quality beef,” says NCBA President Todd Wilkinson. “Our comments emphasize protecting U.S. cattle herds from the threat of a foreign animal disease while also protecting producers’ private data, limiting the cost of tagging devices, and operating at the speed of commerce.” Without a national traceability system in place, the impact of a foreign animal disease outbreak would be magnified. The system would also support cattle producers in quickly returning to normal operations after an outbreak.
| Rural Advocate News | Thursday April 20, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m., followed by U.S. existing home sales in March and an index of U.S. leading indicators at 10 a.m. Weather A system is moving through the middle of the country Thursday morning with a line of thunderstorms from Iowa to Oklahoma, more in the Great Lakes, and snow in the Northern Plains and Canadian Prairies. The system will continue to wind up over the middle of the country today, with a risk of severe storms from Illinois down through Texas. Winds across the Plains and Midwest will be breezy and more dust storms are possible for western Kansas. Temperatures are falling rapidly behind a cold front moving through.
| Rural Advocate News | Wednesday April 19, 2023 |
NPPC Issues Q2 Economic Update The National Pork Producers Council released its second quarter pork industry economic update that provides a look at the top pork industry issues, trends, and market conditions impacting farmers. The report shows pork production increased 2.3 percent through the first quarter, with the USDA now projecting a 1.4 percent annual increase in pork production this year. Retail, wholesale, and farm-level prices show a year-over-year decline. Pork and variety meat exports gained momentum in the first quarter of 2023. Pork producer returns for the remainder of this year will be influenced by various factors, including domestic and export pork demand and input prices. “The U.S. is a worldwide leader in pork production, which is a significant contributor to the U.S. economy,” says Duane Stateler, NPPC Vice President. “Pork producers will continue navigating the economic challenges to ensure we raise safe, wholesome, and affordable food for communities here and around the world.” *********************************************************************************** USDA Announces Grassland Conservation Reserve Program Signup The USDA announced that agricultural producers and private landowners can begin signing up for the Grassland Conservation Reserve Program now through May 26. Among CRP enrollment opportunities, Grassland CRP is a unique working lands program, allowing producers and landowners to continue haying and grazing practices while conserving grasslands and promoting plant and animal biodiversity as well as healthier soil. “Grassland CRP clearly demonstrates that agricultural productivity and conservation priorities can not only coexist but also complement and enhance one another,” says Zach Ducheneaux, administrator of the Farm Service Agency. “The strength of the program lies in its many benefits.” More than 3.1 million acres were accepted through the 2022 Grassland CRP signup from agricultural producers and private landowners. That was the highest-ever level of signups for the program. The current total participation in Grassland CRP is 6.3 million acres. For information or to signup, go to your local USDA Service Center. *********************************************************************************** Wall Street Rules Don’t Belong on Family Farms Wall Street rules intended for publicly-traded companies shouldn’t extend to family farms. That’s the message from the American Farm Bureau and six other agricultural groups to the Securities and Exchange Commission. The SEC proposed a rule to require public companies to report on Scope 3 emissions, which are the result of activities not owned or controlled by a publicly-traded company but contribute to its value chain. Public companies that produce goods from agricultural products would need to report emissions from the relevant agricultural operations. The farm groups’ concern is that the rule will burden family farmers and ranchers and drive further consolidation in agriculture, all for no real environmental benefit. “The tracking will be extremely expensive, invasive, and burdensome for farmers and ranchers, at the cost of improved production practices that will generate actual environmental gains,” the groups say in the letter to the SEC. “Family farms will get hit hardest.” *********************************************************************************** Scott Condemns SNAP Work Requirements House Agriculture Committee Ranking Member David Scott (D-GA) released a statement responding to House Speaker Kevin McCarthy’s debt limit framework. If that framework gets passed as proposed, it will include what Scott calls additional “punitive” work requirements for SNAP participation. “Let me be perfectly clear,” Scott says. “Holding food assistance hostage for those who depend on it, including 15.3 million children, 5.8 million seniors, and 1.2 million veterans, in exchange for increasing the debt limit is a non-starter.” He also points out that the “ransom note” McCarthy unveiled in front of a crowd of Wall Street bankers is dead on arrival. “Republican attempts to punish low-income families to pay for tax cuts they pushed through under President Trump will not result in self-sufficiency,” Scott says. “It will only drastically increase hunger for our American people.” He says the additional work requirements on top of already-existing work rules won’t spur economic growth. *********************************************************************************** USDA Offers More Funding for Expanding High-Speed Internet in Rural Areas The USDA announced the availability of $20 million to deliver broadband technical assistance resources for rural communities and to support the development and expansion of broadband co-ops. The agency is offering the funding under the new Broadband Technical Assistance Program. The program supports technical assistance projects such as feasibility studies, completing network designs, and developing broadband financial assistance applications. Applicants can choose from one of three funding pools. “USDA is committed to making sure that people, no matter where they live, have access to high-speed internet,” says USDA Under Secretary for Rural Development Xochitl (zo-CHEEL) Torres Small. “That’s how you grow the economy not just in rural communities but across the nation.” The undersecretary also says the agency is partnering with small towns, local utilities, cooperatives, and private companies to increase access to a critical service. “The service builds brighter futures by creating more opportunities across rural America,” she says. *********************************************************************************** Ag Retailers Association List Top Five Farm Bill Priorities The Ag Retailers Association says it’s cautiously optimistic the Farm Bill gets written on time. However, the association is worried that debt limit discussions may interfere. It’s going to be tough this year with the farm bill coming up right as the debt ceiling discussion hits the deadline,” says Hunter Carpenter with the Ag Retailers Association. “I’m cautiously optimistic.” The group has five priorities they’re advocating for in the bill. They want the continuation of a strong farm safety net and crop insurance. They want to maintain the current acreage dedicated to conservation programs. Other priorities revolve around biologicals. The previous farm bill started to build a structure around defining plant biologicals. The new farm bill can go further in providing uniform definitions. They’d like to see the farm bill support research functions of USDA, including the National Agricultural Statistics Service. “We’re pushing hard to get it done this year,” he says.
| Rural Advocate News | Wednesday April 19, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m. CDT, including ethanol production. The Federal Reserve's Beige Book will follow at 1 p.m. Traders will continue to monitor the latest weather events around the world as the northern Hemisphere gradually shakes off a long winter season. Weather A multi-pronged system is moving into the Plains Wednesday and will be setting up conditions that favor increasing showers and thunderstorms across the middle of the country throughout the day, including some severe thunderstorms for the eastern Plains into Iowa. Across the north, it is cold enough for areas of snow in Montana, North Dakota and across the border into Saskatchewan and Manitoba, where snowfall is likely to be heavy. Winds continue to be breezy across the Plains, which is unfavorable for crops in drought, mainly wheat.
| Rural Advocate News | Tuesday April 18, 2023 |
Farm Credit Reports on Ag Economy and Condition of Its System The Farm Credit Administration recently received a quarterly update on economic issues affecting agriculture as well as an update on the performance of the Farm Credit System through 2022. Inflation continues to be a core economic issue despite recent declines. Inflation has been driven, in part, by a tight labor market and rising production costs and consumer demand. The report also says strong prices for many commodities have continued into 2023. Tight global grain stocks, declining cattle inventory, and disruptions to specialty crop production continued to support prices. Input costs will remain high this year and curb farm profitability. With the end of the three-year La Niña pattern, drought conditions have improved across many parts of the country. The update also says the System reported strong financial results in 2022, including strong loan growth and higher earnings. The System’s loan portfolio continued to perform well, and portfolio credit quality remained strong. *********************************************************************************** Consider Corn Challenge Still Finding New Uses for Corn The National Corn Growers Association is launching its fourth Consider Corn Challenge. The open-innovation contest invites participants to submit proposals for new uses of field corn as a primary feedstock for producing novel sustainable chemicals and products with quantifiable market demand. “Consumers have a genuine interest in biobased products, and corn is investing in solutions that meet that need,” says NCGA Market Development Action Team Chair Troy Schneider. “In order to continue drawing in game-changing participation, the prize pool has increased to $250,000.” If all 15 winners of the first three Consider Corn Challenges reach full commercialization with products in the marketplace, the potential for additional corn demand would be approximately 3.4 billion bushels. One to six winners will be selected for the fourth Consider Corn Challenge. The submission deadline is June 30 at 5 p.m. Central Time, and winners will be announced in October. To learn more, go to ncga.com/ConsiderCorn. *********************************************************************************** NFU Supports Torres Small for Deputy Ag Secretary The National Farmers Union released a letter in support of the nomination and confirmation of Xochitl (Zo-CHEEL) Torres Small to serve as the Deputy Secretary of Agriculture at USDA. NFU President Rob Larew says current Under Secretary for Rural Development Torres Small has tirelessly served family farmers in New Mexico and the country. “She’s done amazing work for rural communities and supply chains that support our entire economy,” says Larew. “I’m proud to share our support knowing that Under Secretary Torres Small will make a positive impact as Deputy Secretary of the USDA.” NFU has a long history with Torres Small going back to her time as a member of Congress when she represented family farmers and ranchers in New Mexico. NFU urges the Senate Committee on Agriculture to advance Torres Small’s nomination to serve as Deputy Secretary of USDA and looks forward to working with her in the new role. *********************************************************************************** Taylor Leads USDA Trade Mission to the Netherlands USDA’s Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor launched the first-ever regional agribusiness trade mission to the Netherlands in Amsterdam. The delegation includes representatives from 31 agribusiness and farm organizations and ten state departments of agriculture. The group aims to expand economic partnerships between the U.S. and the Netherlands and markets throughout Scandinavia. “As the gateway to Europe for U.S. exports, the Netherlands is an important trading partner,” Taylor says. “Company representatives from Belgium, Denmark, Finland, Germany, Iceland, Norway, and Sweden are joining us in Amsterdam.” She also says with combined total agricultural and related exports to these markets topping $4.5 billion in 2022, Taylor is confident the delegation will be successful in building new relationships that are critical to expanding opportunities for increased trade. USDA will help facilitate business-to-business meetings between small and medium-sized agribusinesses and regional buyers looking to import American farm and food products. *********************************************************************************** Optimism Despite Headwinds in the Ag Equipment Market Equipment manufacturers are still recovering from pressures brought on by COVID-19, but they’re working toward a state of normalcy despite trials and tribulations. Kip Eideberg is the Senior Vice President of Government and Industry Relations for the Association of Equipment Manufacturers. Eideberg says supply chain pressures and a lack of workforce retention have been ongoing struggles for the industry, and individual sectors are facing their own problems as well. A recent AEM survey of its members detailed the strains and pressures that have built up in the global ag sector during the last few years. “Overall, far too many equipment manufacturers still feel the impact of COVID and supply chain disruptions in operations, lead times on components, labor force participation, and financial performance,” says Eideberg. In tracking sales and global data, the ag equipment market is in a good position right now, and there’s more optimism moving forward despite economic headwinds. *********************************************************************************** Illinois Farmland Prices Up 45 Percent in Two Years Illinois farmland prices continued their upward curve in the last several years, and it applies to all classes of farmland throughout the state. That’s according to a report issued during the 2023 Illinois Farmland Values Conference sponsored by the Illinois Society of Professional Farm Managers and Rural Appraisers. Last year continued to see a sharp rise in land values. While certain parts of the state saw more strength than others, Illinois land values were up across the board. Class A land across Illinois rose 45 percent from 2021-2022. While premium acreage always carries the flag, the report says lesser quality acreage saw increases of over 25 percent and, in some instances, over 40 percent during the same period. The state’s professional farmland managers and appraisers said reduced transactions in 2020, historically-low interest rates, strong demand, increased commodity prices, and overall fear in other economic sectors all play a role in rising prices.
| Rural Advocate News | Tuesday April 18, 2023 |
Tuesday Watch List Markets Overnight, China reported first quarter GDP was up 4.5% from a year ago, better than expected, reported RTTNews.com. China's unemployment rate was 5.3% in March, also better than expected. A report on U.S. housing starts in March will be out at 7:30 a.m. CDT Tuesday. In addition to watching the latest weather developments, traders may be leery of Russia's next move. Weather A storm system in the West will move into the Plains on Tuesday, increasing showers and a few thunderstorms. Bouts of snow will develop over the far Northern Plains and into the Canadian Prairies. Winds will also be a little breezy in the Plains, unfavorable for winter wheat.
| Rural Advocate News | Monday April 17, 2023 |
Texas Barn Fire Kills 18,000 Dairy Cattle A Texas dairy farm suffered an explosion and fire that possibly resulted in the largest single-incident livestock death toll in history. Agriculture Dot Com says the Southfork Dairy Farm in Dimmitt, Texas, reports approximately 18,000 dairy cattle died in the blaze. The Castro County Sheriff’s Office said that was about 90 percent of the farm’s total herd. Investigators are working to find out the cause of the devastating fire. “They’re trying to determine if it came from machinery known as a honey wagon that sucks out manure and water,” says Castro County Sheriff Sal Rivera. “It may have possibly ignited methane gas.” The farm employs 60 workers, and all were accounted for. One female was trapped inside, and first responders were able to rescue her from the structure and airlifted her to a nearby hospital, where she’s critical but stable. Southfork Dairy Farm had been running for less than a year. *********************************************************************************** Brazil’s Record Soybean Harvest Continuing Brazil’s farmers will produce 153.6 million metric tons of soybeans this year. CONAB (KOH-nab), a private company that works under Brazil’s Ministry of Agriculture, says that’s up 1.5 percent from their outlook last month. The USDA had projected Brazil’s soybean harvest to reach 154 million metric tons, one million tons higher than the previous forecast. USDA data showed that Brazil produced 130.5 million metric tons a year ago. Global soybean stocks were forecast by the agency at 100.3 million metric tons, up from the prior forecast of 100 million. If reached, that would be up from 99.7 million tons a year earlier. Brazil’s CONAB also expects the country’s corn production to reach a record 124.9 million metric tons, slightly higher than last month’s forecast. The forecast for Argentina’s soybean harvest continues to drop, coming in at 27 million metric tons. That’s six million tons lower than the March USDA forecast. *********************************************************************************** Farmers, Conservationists Ask Court to Strike Down Dicamba Public-interest groups representing farmers and conservationists filed arguments in court seeking to have the Environmental Protection Agency’s approval of dicamba struck down. The arguments are a continuation of an earlier lawsuit that resulted in a 2020 court ruling overturning prior approvals of dicamba as unlawful. The groups say the new litigation was prompted by the EPA’s decision to ignore the court’s ruling and move forward with reapproving the pesticide. “We now have years of incontrovertible evidence revealing that these dicamba products cannot be used without causing grave harm to other farmers and the environment,” says George Kimbrell, legal director of the Center for Food Safety and counsel in the case. The petitioners say dicamba drift and runoff damage natural areas and wildlife refuges, injuring wild flowering plants, including some federally-protected species on which bees and other insects rely. Plaintiff groups include the National Family Farm Coalition, Pesticide Action Network, and others. *********************************************************************************** Vilsack Urged to Deny Petitions on Make Allowance Hearing The American Dairy Coalition sent a letter to Ag Secretary Tom Vilsack asking him to deny two recent petitions for hearings on the Federal Milk Marketing Order. The petitions from processor groups ask USDA to increase payments from farmers to processors to offset higher input costs. The coalition says holding a federal milk pricing hearing on these “make-allowances” without looking into additional concerns facing dairy farmers is misaligned, and therefore ADC can’t support it. “As a grassroots dairy farmer organization, ADC believes a comprehensive FMMO hearing is needed,” says ADC CEO Laurie Fischer. “We do not support ‘make allowance’ updates based on processors having the ability to voluntarily participate in the cost surveys, which undoubtedly would exclude essential relevant data.” ADC also says farmers need transparency in order to understand how their net payment is calculated, and these make allowances are not line items, but they’re embedded in pricing formulas. *********************************************************************************** Ford Phasing Out AM Radios Globally Ford Canada confirms that it’s removing AM radios from all vehicles globally. Ford’s Canadian division says Canada will no longer have access to the AM band in upcoming vehicles. Radio Ink Dot Com says it’s the first confirmation that removing AM from dashboards won’t be isolated to the U.S. A Ford Canada spokesperson says that to listen to AM, all drivers have to do is link their phones to the vehicles entertainment system and stream the stations they’re looking for. Canada has more than 180 AM radio stations. Many of those stations broadcast news and information needed in remote areas that have less than ideal data coverage, making streaming difficult, if not impossible. The Canadian Association of Broadcasters says this marks another profound challenge to AM radio. “It’s unfortunate that the assumption is made that internet streaming of stations will be a suitable substitute in remote Canadian areas,” the group says. *********************************************************************************** U.S. Wheat Planted Area Projected at Seven-Year High The National Agricultural Statistics Service recently estimated the total U.S. 2023-2024 wheat planted area will be 49.9 million acres. That’s up nine percent from the previous year and would be the highest total since 2016-2017. The total winter wheat area is projected up 13 percent as high prices and strong profitability provides major incentives to plant. Hard Red Winter Wheat is projected up 13 percent to 26 million acres, even higher than the January 12 forecast. HRW production regions continue to be impacted by drought, which is likely to affect harvested area and yield. Soft Red Winter Wheat plantings are forecast up 19 percent from the previous year to 7.8 million acres, slightly below the January forecast. Hard Red Spring area is projected down three percent to ten million acres. But the area planted for this class will depend on planting conditions. Durum is projected up nine percent to 1.8 million acres.
| Rural Advocate News | Monday April 17, 2023 |
Top 5 Things to Watch - Field Progress, Frost Watch and Cattle on Feed OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 16. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Frosty week: Weather models took a turn to the colder side as the weekend approached. DTN Ag Meteorologist John Baranick is watching to see if the trend continues through the week. This could bring frost to hard red winter areas, but unlikely be cold enough or long enough to cause much further damage. And, while planters have begun to move, it's also unlikely that there are too many emerged plants in the path of any significant frosts. Early planted gardens might benefit from some cover, however, on species prone to frost damage. 2. Fertilizer trending lower: Our DTN Staff Reporter Russ Quinn, who keeps a close eye on the fertilizer beat, has been documenting the downtrend in fertilizer prices -- and has noted anhydrous prices getting close to that $1,000 level. He'll report where prices landed the previous week. 3. Dairy disaster: We've been reporting on the terrible fire and cattle deaths at the dairy in Dimmit, Texas. Progressive Farmer Senior Editor Victoria Myers will continue following the saga to see if there are lessons to be learned for other large animal units. 4. Market news on our radar: DTN analysts will watch several market-moving actions through the week, especially the ongoing saga of the Black Sea grain deal. We'll have the USDA weekly export inspections at 10 a.m. CDT Monday, with soybean crush numbers from the National Oilseeds Processors Association later Monday morning. Also on Monday, at 3 p.m. CDT, USDA's Crop Progress and Livestock, Dairy and Poultry reports will be out. It will be interesting to see how planting progressed with the warmer weather the week of April 9. 5. Latest cattle call: Friday will see the USDA Cattle on Feed report, due out around 3 p.m. CDT. Watch for preview thoughts ahead of that, and DTN Livestock Analyst ShayLe Stewart's thoughts on the report soon after its release.
| Rural Advocate News | Monday April 17, 2023 |
Monday Watch List Markets Back from the weekend, traders will get acquainted with the latest weather forecasts and any news, especially regarding Russian comments about the Black Sea grain deal. USDA's weekly export inspections will be out at 10 a.m. CDT Monday, followed by a report on members' soybean crush from the National Oilseeds Processors Association, later Monday morning. At 3 p.m., USDA's Crop Progress and Livestock, Dairy and Poultry reports will be out. Weather A storm system continues to bring snow to the Great Lakes area Monday, including heavy snow for parts of Wisconsin. This system will be winding down tonight but there is another one entering the Pacific Northwest which will send several pieces of energy through the country for the rest of the week.
| Rural Advocate News | Friday April 14, 2023 |
Colorado Passes First Right to Repair Legislation Colorado farmers will get the first opportunity to fix their own equipment next year, thanks to newly-approved right-to-repair legislation. Manufacturers will now be required to provide their customers with diagnostic software manuals and other aids. Colorado is the first U.S. state to approve this kind of law. The “Consumer Right to Repair Agriculture Equipment Act” passed the Colorado Senate 46-14 this week, while the state House passed the bill in February. The bill had bipartisan support as farmers’ profits were squeezed by expensive repairs and rapidly rising input prices. The legislation mandates that farm machinery manufacturers like Deere and CNH Industrial furnish their customers with diagnostic tools, software documents, and repair manuals beginning on January 1, 2024. Manufacturers must also provide those resources to independent technicians. A Deere spokesman told Reuters that the company supports farmers’ right to repair but believes this bill wasn’t necessary and will carry unintended consequences. *********************************************************************************** Ag Groups Respond Positively to Court Halting WOTUS Rule A court ruling out of North Dakota halted implementation of the 2023 Waters of the United States Rule in 24 states, and ag groups responded positively. American Farm Bureau President Zippy Duvall says his group proudly stood with the 24 states involved and more than a dozen organizations in this challenge. “Two District Courts have acknowledged the new rule oversteps EPA’s authority under the Clean Water Act,” Duvall says. “With the rule on hold in more than half the country, EPA and the U.S. Army Corps should do the right thing, listen to our legitimate concerns, and rewrite the rule.” The National Cattlemen’s Beef Association also applauded the court’s decision. “Cattle producers in a total of 26 states now have some additional certainty while this rule is being litigated, and we’re optimistic the Supreme Court will provide nationwide clarity on the federal government’s water jurisdiction,” says NCBA President Todd Wilkinson. *********************************************************************************** Sorghum Foundation Opens 2023-2024 Scholarship Applications The National Sorghum Foundation opened three scholarship applications for college students studying agriculture in the upcoming 2023-2024 academic year. The application deadline is June 1, 2023. In the 22 years that the National Sorghum Foundation has been in operation, more than 50 scholarships have been awarded to deserving agricultural students who excel in academics, leadership, and service. “The Foundation is excited to announce that three scholarships will be offered during the spring 2023 semester,” says National Sorghum Foundation Chair Jeff Dahlberg. “These scholarships are named in memory of three giants of the sorghum industry who served for many decades.” Each scholarship includes an award of $1,500 to be applied to one semester of tuition expenses, and one scholarship also includes an all-expense paid trip to Washington, D.C., with the National Sorghum Producers. More information about each scholarship’s criteria and application forms for each scholarship can be found online at SorghumGrowers.com/foundation-scholarships. *********************************************************************************** USDA: Most Improved Award Winner in Best Place to Work Rankings The USDA announced that it’s received recognition for being the “Most Improved” for large federal agencies in the Partnership for Public Service’s 2022 Best Places to Work Rankings. The department now ranks 12th among very large agencies in the Best Places to Work Rankings, up from a 16th place ranking in 2020. “At USDA, we are committed to reaching new heights by cultivating a workplace environment that is collaborative, service-oriented, mission-centered, healthy, and inclusive,” says Ag Secretary Tom Vilsack. “I’m pleased to see these results as we strive to live up to the moniker of ‘the People’s Department,’ and we will continue to move forward with a strong commitment to making improvements on behalf of all employees, attracting talent that represents the diversity of America, and putting people at the center of everything we do.” He says they’re working together to create an engaging environment and cultivate an exceptional workforce. *********************************************************************************** U.S. Potato Exports Hi $2.1 Billion in 2022 Potato exports reached a record $2.1 billion in sales in 2022. Compared to 2021, volume sales dropped 4.2 percent but were higher than in 2018 and 2020. The value of U.S. potato exports rose across all potato types, resulting in an 11 percent increase over the previous year. Global price hikes and inflation can be attributed to this growth. Demand for U.S. potatoes remained strong in 2022, showing that the slight drop in export volume resulted from tight supply. Over the year, the top export markets for U.S. potatoes were Mexico, Canada, Japan, South Korea, and the Philippines, in descending order. The value of U.S. frozen potato exports rose almost 14 percent, reaching $1.34 billion. However, volume dropped 2.5 percent compared to 2021. The top destinations for U.S. frozen potatoes were Japan, Mexico, South Korea, and the Philippines. Potatoes USA says despite inflation-driven price increases of U.S. products, global potato demand remained strong. *********************************************************************************** Iowa House Passes Bill Restricting Drone Surveillance of Livestock Facilities The Iowa House of Representatives passed a bill that restricts drone surveillance of livestock facilities without permission from the property owner. If House File 572 becomes law, remotely piloted aircraft couldn’t fly within 400 feet of homesteads or other areas where animals are kept. People caught in violation would face a simple misdemeanor for intruding on farm airspace. If the device happens to record images, sounds, or other data, that increases the penalty to a serious misdemeanor charge. Agriculture Dot Com says the bill comes in response to animal welfare organizations documenting the conditions and treatment of animals at Iowa’s livestock and dog-breeding facilities. Iowa’s legislators have repeatedly passed “ag-gag” laws to attempt to criminally penalize activists who record and publish images and videos of livestock facilities. Judges have ruled in the past that those laws are unconstitutional. Rep Derek Wulf says the bill “provides privacy rights for our farmers and ranchers.”
| Rural Advocate News | Friday April 14, 2023 |
Friday Watch List Markets The U.S. Commerce Department will report on March retail sales at 7:30 a.m. CDT Friday, followed by the Fed's report on March industrial production at 8:15 and a consumer sentiment index for April at 9 a.m. Traders will keep an eye on the latest weather forecasts and watch for a possible export sale announcement at 8 a.m. Weather A disturbance continues to move northeast out of the Gulf of Mexico, spreading showers through the Southeast on Friday. Behind it, another system is leaving the Rockies with increasing showers across the Plains and Upper Midwest. It remains very warm ahead of this system, with another day or two of good weather for fieldwork for some areas before a more active pattern starts back up.
| Rural Advocate News | Thursday April 13, 2023 |
EPA’s Tailpipe Standards Overlook Ethanol’s Low-Carbon Benefits The Environmental Protection Agency released its proposed tailpipe emissions standards for 2027 and beyond. The Renewable Fuels Association says the agency blatantly tipped the scales in favor of electric battery vehicles. The EPA also overlooked a significant near-term opportunity to achieve significant vehicle efficiency improvements and carbon emissions reductions through increased use of high-octane, low-carbon ethanol fuel blends. “We strongly disagree with the policy approaches that arbitrarily pick technology winners and losers with no clear scientific basis,” says RFA President and CEO Geoff Cooper. RFA points out that a flex fuel vehicle running on E85 made from certain forms of ethanol would provide similar or even lower carbon emissions at a far lower cost. “Today’s EPA proposal would effectively force automakers to produce more electric battery vehicles and strongly discourage them from pursuing other technologies that could achieve the same or better environmental performance at a lower cost for families,” Cooper says. *********************************************************************************** Court Grants Request to Block Biden Administration’s WOTUS Rule in 24 States The U.S. District Court of North Dakota issued a preliminary injunction against the Biden administration from implementing its final rule redefining the Waters of the United States in 24 states. The court’s move comes in response to a motion filed by Montana Attorney General Austin Knudsen. According to the Montana Farm Bureau Federation, estimates from the similar Obama-era rule would have placed nearly 90 percent of Montana’s land under the jurisdiction of the Environmental Protection Agency. “This injunction resulting from our lawsuit is welcome relief to farmers and ranchers and workers in mining, energy, and other industries who would be harmed if this unconstitutional rule is allowed to take effect,” Attorney General Knudsen says. “This is just the first step to stopping the overreaching WOTUS rule.” Knudsen also says he will continue to fight the Biden administration and prevent them from claiming federal jurisdiction over massive swaths of land and water. *********************************************************************************** China Is Now the World’s Largest Wheat Importer The USDA’s Foreign Agricultural Service issued its “Grain: World Markets and Trade Report” and says China is now the biggest wheat importer in the world. The report says China’s wheat imports are forecast up to 12 million tons this year, the country’s highest level of imports since 1995-1996, when imports totaled 12.5 million tons. China’s domestic grain prices have remained high given the country’s minimum support price policy and reduced auction activity amidst uncertainty surrounding the government’s COVID policies. Chinese wheat prices have lingered around $450 per ton during the past year, while China’s corn prices averaged $400 per ton. FAS says competitive pricing has prompted China to import large volumes of both milling and feed-quality wheat. Australian wheat is especially competitive following three consecutive years of record crops. China continues to aggressively import Australian wheat supplies, with July through February wheat imports up 66 percent compared to the previous year. *********************************************************************************** Harvester Sales Continue Recent Gains Combine harvester sales in the U.S. and Canada continued growing while tractor unit sales stayed close to their five-year average. That’s according to new data from the Association of Equipment Manufacturers. Overall, U.S. ag tractor sales continued sliding in March despite gains in the four-wheel drive segments, which were up 106 percent. U.S. self-propelled combine sales grew 45 percent in March, keeping the year-to-date gains above 100 percent. All other tractor segments fell, with the sub-40 horsepower segment leading the losses in March by dropping 14.2 percent. Total U.S. farm tractor sales fell 12.1 percent compared to March 2022 and are down 15.1 percent this year. In Canada, combine harvester sales continue growing, up 190 percent for the month and almost 200 percent year to date. Total Canadian tractor sales finished March down 24 percent. “The March tractor and combine report is a mixed bag,” says Curt Blades of AEM. *********************************************************************************** NPB Hires First Chief Sustainability Officer The National Pork Board has hired James “Jamie” Burr as its first Chief Sustainability Officer. Burr brings over 20 years of experience to help the pork industry meet sustainability goals in his new role. “Jamie’s input has been invaluable to several key producer-funded initiatives for over a decade,” says Bill Even, National Pork Board CEO. “He’s served on and chaired several Pork Board environmental and sustainability committees and task forces, so his leadership has already helped shape the industry’s sustainability vision.” Even also says establishing a CSO position and adding Burr to the team continues to demonstrate the industry’s strong commitment to advancing pork sustainability. Burr comes to the NPB from Tyson Foods, where he recently served as director of environmental compliance and was the environmental lead for all of Tyson’s live-animal production businesses. Burr earned a Master’s Degree in Soil Science and a Bachelor of Science in Agronomy from Missouri State University. *********************************************************************************** Food Help on the Way to Arkansas After Tornadoes, Severe Storms Approximately 7,000 families in Cross and Pulaski Counties in Arkansas were hit hard by recent tornadoes and severe storms. They’ll soon get food packages containing nutritious, high-quality foods that are 100 percent grown and produced on farms in the U.S. The packages are known as USDA Foods. “In challenging times like this, USDA plays a critical role in supporting Americans, and none are more challenging than climate-related disasters that threaten lives, destroy communities, and disrupt food systems,” says Ag Secretary Tom Vilsack. “Until their recovery is complete, we will continue to coordinate with our state, local, and federal partners to help get food and nutrition assistance to them when they need it most.” The Disaster Household Distribution program was approved to start on April 7. Arkansas officials will work directly with partners and local food banks to issue food boxes to participants located in affected areas. More information is available at fns.usda.gov.
| Rural Advocate News | Thursday April 13, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, the producer price index for March and an update of the U.S. Drought Monitor. The U.S. Energy Department reports on natural gas in storage at 9:30 a.m. Traders will keep track of the latest weather developments, especially in the U.S. and Brazil. Weather A storm system moving north from the Gulf of Mexico is spreading showers into the Southeast on Thursday. Another system moving through the West will see showers increasing across the Plains as well. Some heavy snow will move through Montana while the snowpack farther east will continue melting. Warm and breezy conditions continue ahead of the storm system with another good day for fieldwork occurring for most areas.
| Rural Advocate News | Wednesday April 12, 2023 |
WOTUS Stopped in 26 States After Ruling - Federal Judge in North Dakota Issues Injunction in 24 States OMAHA (DTN) -- The waters of the U.S. rule is now on hold in 26 states after a federal judge in North Dakota issued a preliminary injunction on Wednesday in the 24 states that filed a lawsuit against the Biden administration. The U.S. District Court for the District of North Dakota's ruling now prevents enforcement of the WOTUS rule in Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming. Texas and Idaho previously received an injunction from the U.S. District Court for the Southern District of Texas. The states along with several agriculture and other industry groups have argued in the lawsuit the latest WOTUS rule is a federal overreach and would exact serious costs to states and others to comply. In his opinion and order, Judge Daniel L. Hovland said he agreed. "The numerous declarations filed in this case by state officials outline in detail the specific costs of state compliance with the EPA's new 2023 rule, as well as the significant infringement on state sovereignty that confers standing on the named plaintiffs," Hovland said in the ruling. "The 2023 rule does cause injury to states because they are the direct object of its requirements. And the states are also landowners with direct obligations under the Clean Water Act. There is not a mere possibility the new regulations will impact the states -- it is a given. The irreparable harm to the states that occurs with the implementation of the new 2023 rule is clear and undisputed." Ag groups led by the American Farm Bureau Federation had asked the court to issue a national injunction against the rule, but the judge stopped short of that. The track the legal challenges to the new rule are taking is nearly identical to what occurred with the 2015 rule. At one point during the legal battles on the Obama-era rule, there was a near 50-50 split on where the rule was being enforced. AG REACTION The National Cattlemen's Beef Association, one of the ag groups intervening in the lawsuit in North Dakota, said the ruling was important. "Once again, the courts have affirmed that the Biden administration's WOTUS rule is overreaching and harmful to America's beef farmers and ranchers," NCBA President Todd Wilkinson said in a statement. "Cattle producers in 26 states now have some additional certainty while this rule is being litigated, and we are optimistic that the Supreme Court will provide nationwide clarity on the federal government's proper jurisdiction over water." Sometime this spring it is expected the Supreme Court will issue a ruling in Sackett v EPA. A ruling could determine how EPA and the U.S. Army Corps of Engineers make Clean Water Act determinations -- particularly when it comes to wetlands. Agriculture and other groups pressed the agencies to hold off issuing the new rule until after the Supreme Court delivers an opinion. Hovland criticized EPA for moving forward with a rule while the Supreme Court ruling was pending. "There is little public interest or any efficiency gained by implementing a new rule which codifies the 'significant nexus' test before the United States Supreme Court issues a decision in Sackett," Hovland said in the opinion. Hovland added, "Common sense dictates that it only makes sense to wait. There is no urgency to implement the 2023 rule. The Supreme Court's decision in Sackett will be issued by June 2023 and will likely address many of the unresolved legal issues and jurisdictional determinations at the heart of this lawsuit." Environmental groups and the federal agencies have tried to make the case that an injunction will lead to further environmental damage to water resources. The judge disagreed. "There is no legitimate concern that natural resources are threatened because all local lands and waters remain under the state's traditional protection," Hovland said in the opinion. "A delay allows for a full and final resolution on the merits and is in the best interests of the public. The court finds that a far broader segment of the public would benefit from a preliminary injunction because it would ensure that federal agencies do not extend their power beyond the express delegation from Congress."
| Rural Advocate News | Wednesday April 12, 2023 |
USDA Releases April WASDE Report USDA’s latest World Agricultural Supply and Demand Report offers few changes to the outlook for corn, soybeans and wheat. Released Tuesday, this month's 2022/23 U.S. corn outlook predicts reductions to imports and food, seed, and industrial use, with unchanged ending stocks. Corn imports are lowered ten million bushels based on observed trade to date. The season-average farm price was unchanged at $6.60 per bushel. The U.S. soybean supply and use forecasts for 2022/23 are unchanged relative to last month. Soybean and soybean meal prices are also unchanged. The soybean oil price is projected at 64.0 cents per pound, down two cents. This is the second-straight month USDA did not change the season-average soybean price per bushel, at $14.30. This month's outlook for 2022/23 U.S. wheat predicts slightly higher supplies, reduced domestic use, unchanged exports, and increased ending stocks. The 2022/23 season-average farm price is forecast $0.10 per bushel lower at $8.90. *********************************************************************************** West Coast Port Labor Disagreements Could Be Dangerous, Permanent The lack of a West Coast labor contract between the International Longshore and Warehouse Union and the Pacific Maritime Association could be dangerous and permanent. That's according to the Agriculture Transportation Coalition. Coalition Executive Director Peter Friedmann says, "Too many West Coast marine terminals are operating on reduced schedules, creating massive disruption." Shippers are moving cargo from the West Coast to ports on the East Coast. Friedmann says that could be a permanent move. West Coast ports are essential to the competitiveness of U.S. agricultural exporters. U.S. agriculture's largest international markets are in the Asia Pacific, and the most direct and fastest route is by truck or rail to the West Coast gateways. U.S. ag faces extremely competitive global sourcing competition, so it must be faster and less expensive than other exporters. Friedmann adds, "If the import cargo and the ships carrying it is trending to U.S. East Coast ports and away from the West Coast, exporters have fewer vessel sailings." *********************************************************************************** USDA Grant Funding Research to Reduce Beef Ghg Emissions The Department of Agriculture is investing $40 million this year for 31 projects through its Conservation Innovation Grants. One grant includes the Innovative Technologies to Reduce Beef Industry Ghg Emissions project led by Colorado State University. The investments emphasize adoption and implementation of climate-smart practices, including nutrient management, which helps producers manage nutrients and soil amendments to maximize their economic benefit while minimizing their environmental impact. NRCS Colorado State Conservationist Clint Evans says, “These investments move the needle in helping agricultural producers adopt and implement climate-smart practices, including nutrient management.” This year, NRCS is investing $25 million through On-Farm Trials, which supports adoption and evaluation of innovative conservation approaches. Incentive payments are provided to producers to offset the risk of implementing innovative approaches. Colorado State University received $1 million for the project to generate science-based estimates of CO2-equivalent emissions from the livestock grazing and finishing sectors using novel technologies and evaluate potential CO2e reductions from conservation practices. *********************************************************************************** USDA Seeking Applications to Expand Conservation Assistance to Underserved Producers The Department of Agriculture reminded farmers and ranchers this week the agency is seeking applications for projects that will improve outreach to underserved producers. Specifically, USDA wants to improve outreach about conservation programs and services and opportunities for students to pursue careers in agriculture, natural resources and related sciences. USDA's Natural Resources Conservation Service is offering up to $70 million in cooperative agreements with entities for two-year projects encouraging participation in NRCS programs, especially in underserved communities and urban and small-scale producers. NRCS Chief Terry Cosby says, “The projects funded through this opportunity will better ensure these producers receive the benefits our conservation programs deliver.” The funding opportunity builds on NRCS’ fiscal year 2022 investment of $50 million in more than 100 partnerships to expand access to conservation assistance for climate-smart agriculture and forestry. The application deadline is April 27. Applications information and guidance is available online at grants.gov. *********************************************************************************** USDA Researchers Develop Natural, Washable Antimicrobial Cleaning Wipes Most antimicrobial wipes, predominantly made of synthetic fibers like polyester and polypropylene, are discarded after a single use and end up in landfills. However, USDA Agricultural Research Service scientists recently developed sustainable, machine-washable antimicrobial wipes that can be used at least 30 times for cleaning hard and nonporous surfaces. ARS researchers developed antimicrobial wipes by using raw cotton fiber that naturally produced silver nanoparticles inside the fiber. These embedded nanoparticles can then release ions that act as antibacterial agents and kill harmful bacteria. The researchers say people will be able to clean surfaces by wetting the antimicrobial cloths with tap water and then wiping surfaces. In their research, scientists found that the wipes killed 99.9 percent of harmful bacteria on surfaces. The worldwide antimicrobial wipes market is estimated to reach $21.6 billion by 2030, According to the Antimicrobial Wipes Market Outlook report. *********************************************************************************** Alltech Feed Division Announces New Leadership Roles Alltech Tuesday announced new leadership roles within the Alltech feed division. Scot Harold will assume commercial leadership as executive vice president, Feed & Premix, and Brian Gier joins the company as vice president of sales for Hubbard Feeds. Alltech COO Mike Castle says, “Scot and Brian will bring leadership and experience that will enable us to capitalize on opportunities within our feed business.” Harold joined Alltech in 2020 as the director of sales for Ridley Feed Ingredients, part of the Alltech feed division. He will work with the leadership team to develop and implement strategy for growth of the feed business while strengthening alignment across the feed, premix and specialty ingredients teams. Before joining Alltech, Harold served as Cargill Animal Nutrition's national sales leader for both the Dealer & Multi-Store Ag Retailer segments. Alltech welcomes Gier to the team from Purina Mills, where he served as vice president of sales.
| Rural Advocate News | Wednesday April 12, 2023 |
Wednesday Watch List Markets The U.S. Labor Department's consumer price index for March is due out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly report of energy inventories, including ethanol production at 9:30 a.m. At 1 p.m., the Federal Reserve will have minutes from the latest FOMC meeting and the U.S. Treasury will report on the federal budget for March. Weather A pair of systems are entrenching on the country Wednesday. One over the Gulf of Mexico will start to bring showers northward into the coast for the next couple of days. Another is moving into the West and Canadian Prairies where showers will expand into the Northern Plains. That includes some snow in spots. Breezy winds across the Plains and Midwest are a risk for spreading wildfires, though the warmth continues to be a boon for fieldwork and early planting. The snowpack across the north has taken a major hit and flooding is starting up.
| Rural Advocate News | Tuesday April 11, 2023 |
World Food Price Index Continues Decline The Food and Agriculture Organization of the United Nations Food Price Index averaged 126.9 points in March 2023, down 2.8 points or 2.1 percent from February. The average marks the twelfth consecutive monthly decline since reaching its peak one year ago. During the past twelve months since March 2022, the index has declined 20.5 percent. The Cereal Price Index averaged 138.6 points in March, down 5.6 percent from February and 18 percent below its one year ago. The Vegetable Oil Price Index averaged 131.8 points in March, down three percent from February and 47.7 percent below its level a year ago. The Dairy Price Index averaged 130.3 points in March, down 1.1 points from February and 10.7 percent lower for the year. The Meat Price Index averaged 113.0 points, up slightly in March, but 5.3 percent lower than a year ago. Finally, the Sugar Price Index averaged 127.0 points in March, up 1.5 percent from February, the second consecutive monthly increase, reaching its highest level since October 2016. *********************************************************************************** Coalition Asks Lawmakers to Fund Export Promotion Programs The Coalition to Promote U.S. Agricultural Exports urges congressional appropriators to continue mandatory funding for Market Access and Foreign Market Development programs. The Coalition also asked the Senate agriculture committee to include a provision that would double the dollars for those programs in the next Farm Bill. In letters sent to the chairs and ranking members of the Senate and House agriculture appropriations subcommittees, the Coalition asked that the MAP get at least $200 million and FMD receive a minimum of $34.5 million in fiscal 2024. The Coalition also called on House and Senate Agriculture Committee leaders to include the Expanding Agricultural Exports Act of 2023 in the 2023 farm bill. The legislation would double the annual funding for MAP and FMD over the five years of the new Farm Bill. The Coalition says the outlook for agricultural trade is "uncertain due to continuing supply chain disruptions, surging international competition and the absence of new, near-term trade agreements." The group includes more than 120 agricultural organizations. *********************************************************************************** Academics Predict USMCA Dispute Panel Would Favor U.S. over Mexico Ag economists at The Ohio State University predict a U.S.-Mexico-Canada Agreement dispute settlement panel over biotech corn would rule in favor of the United States. The U.S. Trade Representative's Office recently requested technical consultations with Mexico under the Sanitary and Phytosanitary Measures Chapter of USMCA. The dispute has its origins in a decree issued by Mexico calling for GM corn for human consumption to be phased out by the end of January 2024. Given Mexico is the second-largest export market for U.S. corn totaling $4.792 billion in 2022, the original decree ratcheted up trade tensions between the two countries. Following U.S. pressure, Mexico scrapped the 2024 deadline banning GM corn for animal feed and industrial use on February 13, 2023, while retaining the ban on its use for human consumption. The experts say that “if a panel investigation goes ahead, “our expectation is that it will rule in favor of the United States.” *********************************************************************************** Beginning Farm Operations Tend to be in the South and West Beginning farms tend to be more concentrated in Southern and Western States than in other areas of the United States, according to USDA's Economic Research Service. Data published Monday by ERS shows that in some counties in California and Texas, the proportion of beginning farms is more than one-third of the total farms. As of 2017, there were about 340,000 farms—with almost 900,000 operators—on which all operators were beginning farmers with ten or fewer years of farm management experience. Most beginning farms are small-scale operations, about 67 percent of beginning farms produce less than $10,000 worth of output. Less than two percent of beginning farms achieve an annual production value of more than $1 million. Among farms with at least $10,000 in production, principal operators of beginning farms were 43 years old on average. In contrast, the age of operators of established farms averaged 63 years old. USDA offers numerous resources for beginning farmers. *********************************************************************************** Missouri River Runoff Forecast Improves The latest 2023 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, is showing improvement. Spring precipitation, including increased mountain snowpack and late-season plains snow, has provided improved runoff conditions. The 2023 calendar year runoff forecast above Sioux City is 26.4 million acre-feet, 103 percent of average. The runoff forecast is based on current soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. March runoff in the Missouri River Basin above Sioux City was 1.7 million acre-feet, 57 percent of average. System storage is currently 46.8 million acre-feet, 9.3 million below the top of the carryover multiple-use zone. Beginning in mid-March, releases from Gavins Point Dam were adjusted to provide flow support for Missouri River navigation. Navigation flow support for the Missouri River is at minimum service for the first half of the 2023 season, which began April 1 at the mouth of the river near St. Louis, Missouri. *********************************************************************************** Gas Prices Inch Higher, Diesel Lower For the second straight week, the nation's average price of gasoline has increased, up 8.8 cents from a week ago to $3.57 per gallon. The national average is up 13.0 cents from a month ago but 52.6 cents per gallon lower than a year ago. The national average diesel price fell 1.6 cents last week and stands at $4.15 per gallon, 88.9 cents lower than one year ago. GasBuddy's Patrick De Haan says, “Expect the upward trend to continue through much of the rest of spring.” However, once the transition to summer gasoline is complete, prices may slump in June. Over the last few weeks, the price of West Texas Intermediate crude rallied by over 20 percent from a low of $65 per barrel to back over $80 last week after OPEC+’s surprise decision to piece together a 1.15 million barrel per day production cut, and as the banking crisis has eased.
| Rural Advocate News | Tuesday April 11, 2023 |
Tuesday Watch List Markets USDA's WASDE report for April is due out at 11 a.m. CDT on Tuesday, followed by DTN's webinar at 12:30 p.m. Traders will keep up with the latest weather forecasts and any planting anecdotes in the U.S. The market will also pause at 8 a.m., in case USDA has an export sale announcement. Weather A ridge of high pressure continues to dominate most of the U.S. on Tuesday, leading to generally dry and warm conditions. A system moving through the Pacific Northwest and Canadian Prairies is bringing some showers, however. Winds will be a bit breezy in the Plains, but another day of warmth and sunshine should be beneficial for getting out into the fields in a lot of areas, as well as melting the northern snowpack.
| Rural Advocate News | Monday April 10, 2023 |
Top 5 Things to Watch - WASDE, Warm Weather and Road Warriors OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 16. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. April WASDE: April 11 is the next World Agricultural Supply and Demand Estimates (WASDE) report. DTN Lead Analyst Todd Hultman will post his expectations for the report on April 10. We'll have coverage just after 11 a.m. CDT, as quick as those little electrons can get to your computer, satellite unit and mobile devices. You'll see updated commentary on the report through the 11:00 hour. 2. Change in weather pattern: Troughs, and the clashing storms they create, stay away. Milder conditions are in, at least through most of this week. That may help coax some planters and tillage equipment out of the shed, but it also means the beginning of the Big Melt in the Northern Plains. We'll continue to be on flood watch as the week progresses, and as the potential for rain comes back in the following week. 3. Lively livestock markets: The past week saw significant cash sales around the country, with the dollars to keep the sale rings going. We'll continue to track this hot market. 4. Be safe out there: The first rush of spring always brings the chance of roadway conflicts as the nonfarm world remembers what those big pieces of equipment with orange and red triangle signs are all about. The closing rate between 60 mph and 17 mph is, well, faster than you think. Be watchful, no matter which end of that speed scale you're on. 5. Speaking of safety: One of the nastiest days you can have is standing over or next to an anhydrous ammonia connection that fails. If you're a "gasser," remember: Gloves, goggles, rinse water. And doublecheck those hoses before you crack the valve.
| Rural Advocate News | Monday April 10, 2023 |
Monday Watch List Markets Back from Easter weekend, traders will check the latest weather forecasts and pause at 8 a.m. CDT, in case an export sale is announced. DTN's WASDE preview will be out Monday morning. USDA will have its weekly report of export inspections at 10 a.m., followed by the second Crop Progress report of 2023 at 3 p.m. Weather A very small disturbance may bring some showers to the Plains Monday, while a small system moves through the Pacific Northwest and Canadian Prairies. But most of the county will be rather quiet with rising temperatures. Over the deep snowpack in the Northern Plains and Canadian Prairies, this will likely lead to snowmelt and some areas of flooding.
| Rural Advocate News | Friday April 7, 2023 |
Ford Keeping AM Radios in Commercial Vehicles A new report says Ford will keep AM radios in certain vehicles. The company plans to exclude AM radio from “most new and updated vehicles we bring to market” but also says commercial vehicles will continue to have AM radios. A Ford Authority report says, “This group of vehicles will likely consist of vehicles that count toward Ford Pro sales – the automaker’s commercial-focused division.” The report also says it’s not, by any means, a given because Ford could ditch the feature in some or all of those vehicles as well. So far, a total of eight automakers say they will remove AM radio from the dashboards of some of their models, mostly in the fast-growing electric vehicle segment. In a series of letters, none of the eight are signaling any second thoughts despite the Federal Emergency Management Agency’s push about the critical role AM plays in delivering public safety information. *********************************************************************************** Asia and Africa are the Future of Trade The best opportunities for increasing agricultural trade in the years ahead will take place in Southeast Asia and Africa. The Hagstrom Report says Foreign Agricultural Service Administrator Daniel Whitley made that observation during a recent speech before the American Association of Port Authorities. “Southeast Asia is the fastest-growing market for America’s products,” Whitley says. “People are moving from low-income to middle-income consumers who eat more fruits and vegetables and patronize restaurants and high-end grocery stores.” He also says Vietnam, Malaysia, the Philippines, Thailand, and Singapore already have a “fixation” with the U.S. brand. Whitley says Africa is “visibly shifting before our eyes.” Africa is going from being development recipients to commercial customers. “We need to be in a business relationship and not a developmental relationship with African countries,” he says. “While African countries have traditional ties with the EU, they also want to break some of those ties.” *********************************************************************************** Sorghum Yield Contest is Now Open National Sorghum Producers will now begin accepting entries for the 2023 National Sorghum Yield Contest. State and national winners get selected from contestants split into east and west regions for each division, which includes irrigated, dryland no-till, dryland tillage, and one overall winner for food grade. The entry deadline for the contest is November 15. A complete field of 10 or more continuous acres, planted in the sorghum seed variety named on the entry form, will be designated as the contest field. The contestants must harvest and report at least 1.5 contiguous acres. “The competition motivates farmers and seed companies to explore innovative genetics and techniques for enhancing sorghum yields,” says NSP CEO Tim Lust. “Despite the drought of 2022, we saw excellent top-end yields in the contest from growers nationwide.” To find the entry form, 2023 yield contest rules, and more information, interested sorghum producers can go to sorghumgrowers.com. *********************************************************************************** CHS Reports Second-Quarter Earnings CHS, Inc., released its second-quarter earnings results of $292.3 million in net income compared to $219 million in the second quarter of fiscal year 2022. The second quarter ended on February 28. For the first six months of fiscal year 2023, the company reported net income of $1.1 billion and revenues of $24.1 billion. That compares to net income of $671 million and $21.2 billion in revenues during the first half of fiscal year 2022. The report also says decreased prices for agronomy products and ethanol contributed to lower earnings in the company’s agriculture segment. “Strong global demand for commodities and improved market conditions for refined fuels led to increased earnings for the quarter as well as the first half of the fiscal year,” says Jay Debertin, president and CEO of CHS. “The strength of our diversified portfolio offset margin pressures experienced in our ag segment, particularly wholesale and retail agronomy products.” *********************************************************************************** No mRNA Vaccines in U.S. Cattle Social media has been sharing information that mRNA vaccines are getting used in raising the U.S. cattle herd. A National Cattlemen’s Beef Association statement says there are no current mRNA vaccines licensed for use in beef cattle in the United States. “Cattle farmers and ranchers do vaccinate cattle to treat and prevent many diseases,” the statement says, “but presently, none of these vaccines include mRNA technology.” Texas agriculture commissioner Sid Miller says his department has been working towards a fact and science-based assessment of the risks associated with this technology. “Our analysis will include the clinical research and the public policy, economic, and production impact of the different policy prescriptions we may adopt,” Miller says. “It’s a serious issue we are looking into here at TDA.” A January 12 article on the website Truth Press said if Americans consumed meat from a vaccinated animal, the mRNA vaccines then entered their bodies. *********************************************************************************** Hereford Association Growing Young Leaders Twenty-one National Junior Hereford Association members were selected to accompany the NJHA Board of Directors at the second Building on Leadership Development Conference in Texas. The board created the BOLD conferences for college-aged junior Hereford members seeking opportunities to expand their leadership skills. BOLD is geared toward college and career-focused junior members. It provides them with a personalized learning experience focused on improving their leadership, providing career opportunities, and cultivating life-long relationships. “From the moment I got there, I was laughing and having fun with my peers,” said Lauren Jones, a BOLD conference attendee. “But I was also challenged to think of what I want my future to look like and how to achieve it.” BOLD is an annual leadership opportunity and is scheduled for April 4-7, 2024. Junior members ages 14-22 looking to expand their leadership skills are invited to attend the 2023 Faces of Leadership Conference scheduled for July.
| Rural Advocate News | Thursday April 6, 2023 |
Farmers Seek Comprehensive Reform to Federal Milk Pricing The American Farm Bureau Federation told Agriculture Secretary Tom Vilsack Wednesday that requests to increase make allowances fall short of fairly supporting dairy farmers. Make allowances are used in part to calculate how much a processor pays for milk. Dairy farmers, on average, lose $6.72 per hundredweight of milk produced, according to USDA data. The loss for dairy farms with less than 50 cows was even greater at $21.58 per hundredweight. Two dairy processor associations requested a federal milk marketing order hearing to increase make allowances. While AFBF is not opposed to updating make allowances, the proposals to USDA do not address the wider need for changes to milk pricing regulations, according to AFBF President Zippy Duvall. In a letter to Vilsack, Duvall says, "The petitions we oppose here threaten to undercut trust between farmers who produce the milk and the processors who turn it into the dairy products we all know and love." *********************************************************************************** Boozman, Thune Lead Effort to Permanently Repeal Death Tax Republican Senators John Boozman, John Thune and Mitch McConnell are leading an effort to permanently repeal the death tax. The Death Tax Repeal Act would permanently repeal the federal estate tax, more commonly known as the death tax. Senator Boozman says, “The Death Tax hangs over too many family agriculture operations and small businesses as a potential destroyer of generations worth of work and investment.” Senator Thune adds, “I will continue to do everything in my power to remove these roadblocks for family businesses and repeal the death tax once and for all.” The legislation also has backing from a majority of Senate Republicans and is supported by more than 150 members of the Family Business Coalition and 111 members of the Family Business Estate Tax Coalition, which includes the American Farm Bureau Federation. Senate Majority Leader McConnell concludes, “Washington Democrats need to recognize the economic damage they’ve inflicted and join Republicans in ending this harmful tax.” *********************************************************************************** RFA Calls on Biden Administration to Allow E15 This Summer The Renewable Fuels Association kicked off an advertising campaign this week urging for quick action by the White House to allow summer availability of E15. The campaign comes as the summer driving season is less than two months away, and fuel prices are again rising. The campaign targets ethanol supporters across the Midwest, as well as policymakers and insiders in Washington, D.C. RFA President and CEO Geoff Cooper says, "Our message to the Biden administration is simple: Unless the White House acts quickly, American drivers will lose access to the lowest-cost, lowest-carbon fuel at the pump on June 1." Cooper pointed out that a Morning Consult poll conducted late last month found strong voter support for year-round E15 sales. 70 percent of poll respondents support increasing the availability of E15 to help lower fuel prices and support energy independence, while 62 percent support recently introduced bipartisan legislation allowing the lower-carbon E15 blend to be sold year-round nationwide. *********************************************************************************** Application Rates of Manure as a Nutrient Source Vary by Crop Data from USDA’s Economic Research Service shows the use of manure as a nutrient varies by type of crop. Between 2013 and 2019, producers of seven major crops in the U.S. who used manure were asked how much manure they applied per acre, allowing ERS to estimate crop nutrient application rates. Corn received the highest application rate of nitrogen from a manure source—92 pounds per acre—followed by cotton, wheat, barley, oats, soybeans, and peanuts. Cotton led phosphorus application at 37 pounds per acre, and corn led potassium application at 59 pounds per acre. Soybeans and peanuts require less nitrogen fertilization, and they were applied with the lowest manure nitrogen application rates. Manure applied to soybeans and peanuts is valued primarily for its phosphorus and potassium. In 2020, manure was applied to about eight percent of the 240.9 million acres planted to seven major U.S. field crops. *********************************************************************************** Bayer Investing $65 Million in Ukraine Seed Production Site Bayer announced a $65 million investment in its corn seed production facility in Ukraine, as part of its commitment to Ukraine. The investment includes a new seed dryer, state-of-the-art agricultural field equipment, storage facilities and the construction of two bomb shelters to ensure safety. Matthias Berninger of Bayer says, “Bayer has been active in Ukraine for many years and is committed to the country, its people and farming communities.” Before the war, the company made a significant investment to establish corn seed production through a network of skilled Ukrainian farmers and the greenfield seed processing site. The plant was inaugurated in 2018 and operates with around 100 on-site employees and about 250 to 300 seasonal workers. Bayer, with its plant, is one of the biggest investors in the region. This included the donation of more than 40,000 bags of corn and vegetable seeds as well as healthcare product donations. *********************************************************************************** USDA Funding to Support Food Security in Alaska, Hawaii, US Territories The Department of Agriculture Wednesday announced $7.6 million in funding to improve food security in Alaska, Hawaii and U.S. Territories. The funding seeks to increase the quantity and quality of locally grown food through small-scale gardening, herding, and livestock operations in food-insecure communities. USDA announced the funding as part of its Micro-Grants for Food Security Program. This year, the program received an additional $3 million through the Consolidated Appropriations Act of 2023. The program is authorized by the 2018 Farm Bill and awards grants to eligible states and territories through a non-competitive application process. USDA’s Jenny Lester Moffitt says, “Micro-Grants provide funding to ensure communities in these areas have sustained access to quality, locally grown food.” States and territories that receive funding will grant competitive subawards to individuals, Tribal nations, nonprofit organizations engaged in increasing food security, federally funded educational facilities, or local governments.
| Rural Advocate News | Thursday April 6, 2023 |
Thursday Watch List Markets USDA's weekly report of export sales will be out at 7:30 a.m. CDT, the same time as U.S. weekly jobless claims and an update of the U.S. Drought Monitor. At 9:30 a.m., the Department of Energy will have its weekly report on natural gas storage. U.S. futures markets will be closed Friday, but the Labor Department will report on nonfarm payrolls and the U.S. unemployment rate for March at 7:30 a.m. Weather A frontal boundary will continue periods of showers and thunderstorms for parts of the South and Southeast Thursday. Some of the rains may be heavy and cause some flooding. It will be cooler behind that front across a lot of the country, but the skies will be quieter.
| Rural Advocate News | Wednesday April 5, 2023 |
Commodity Prices, Interest Rates, Prompt Ag Economy Barometer Decline Farmer sentiment weakened again in March as the Purdue University-CME Group Ag Economy Barometer fell eight points to a reading of 117. Both the Index of Current Conditions and the Index of Future Expectations declined eight points in March, leaving the Current Conditions Index at 126 and the Future Expectations Index at 113. Weaker prices for key commodities, including wheat, corn, and soybeans, from mid-February through mid-March were a key factor behind this month's weaker sentiment reading. This month's survey was conducted from March 13-17, 2023, which coincided with the demise of Silicon Valley Bank and Signature Bank. Although the March survey did not include any questions directly related to the bank closures, it did reveal that rising interest rates have become a bigger concern among farmers. Although producers still cite high input costs as their top concern, they are becoming more worried about rising interest rates and the impact those higher rates will have on their operations. *********************************************************************************** Corn Growers to EPA: Maintaining Consumer Access to E15 Increases Fuel Supply The National Corn Growers Association president and 18 state groups call on the Environmental Protection Agency to ensure uninterrupted access to E15 through the summer. In a letter to the EPA Tuesday, the industry leaders say, "Fuel market conditions that warranted EPA's actions last summer are expected to continue this summer." Last year, the EPA provided a waiver to allow summertime sales of E15. NCGA points out that E15 has been sold year-round for the past four years, but outdated regulatory barriers continue to hinder permanent full-market access to E15. Retailers have increased availability of E15, often marketed as Unleaded 88, to offer consumers choice and lower fuel costs, as well as increase the fuel supply. The corn grower leaders pointed to warning signs, such as OPEC's announcement of a 1.16 million barrels per day output reduction beginning in May, as reason the Biden administration should do everything possible to increase the domestic fuel supply to help keep prices down. *********************************************************************************** Study: UK Ag Trade Depends Heavily on Imports New data from USDA’s Economic Research Service shows the United Kingdom is the world’s fifth-largest importer of agricultural products. The U.K. imported $78.2 billion in agricultural and related goods in 2021 and exported $31.9 billion, less than half the value of imports. Historically, the European Union has been the largest trading partner with the U.K., but the U.K.’s formal departure from the European single market, known as “Brexit,” will likely impact the UK’s trade dynamics as the country seeks to diversify trading partners. An estimated two-thirds of agricultural goods imported by the U.K. in 2021 were high-value, consumer-oriented products. The United States exported about $1.12 million in alcoholic beverages to the U.K. in 2021. Agreements between the U.K. and the United States in 2022 to allow for the export of British beef and lamb to the United States for the first time since the 1990s are expected to generate $50 million in trade over the next five years. *********************************************************************************** Grassley Joins Bill to Crack Down on Xylazine Republican Senator Chuck Grassley joined Democrats Catherine Cortez Masto of Nevada and Maggie Hassan to introduce the Combating Illicit Xylazine (zy-la-zeen) Act last week. Grassley of Iowa sits on the Senate Ag Committee and joins the effort to crack down on the highly dangerous sedative causing fatal overdoses nationwide. Xylazine is an easily accessible veterinary tranquilizer that is being used as a low-cost cutting agent. The Drug Enforcement Agency recently reported 23 percent of fentanyl powder contained it in 2022. The legislation would classify xylazine illicit use under Schedule III of the Controlled Substances Act and enable the DEA to track its manufacturing to ensure it is not diverted to the illicit market. However, lawmakers say the bill will also protect access for veterinarians, farmers, cattlemen, and ranchers by protecting the veterinary medicine use of xylazine. The American Veterinary Medical Association "fully supports" the effort, adding. "it strikes the right balance of protecting our communities while preserving veterinary access to this critically important animal drug." *********************************************************************************** USDA: Look for Invasive Pests This Month The Department of Agriculture Tuesday declared April as 2023 Invasive Plant Pest and Disease Awareness Month. The outreach effort is dedicated to highlighting the impact of invasive plant pests and diseases on plants nationwide. The campaign also seeks to inform Americans on how they can help reduce the spread of invasive plant pests. Each year, invasive insects and plant diseases cause an estimated $40 billion in damages to plants, including key agricultural crops. Agriculture Secretary Tom Vilsack says, “This spring, familiarize yourself with the invasive pest quarantines in your area and do your part to avoid inadvertently moving invasive insects and plant diseases to new areas.” Nonnative plant pests can hitchhike in untreated firewood, attach themselves to cars, boats, and other outdoor surfaces—or take a ride in the mail. They can travel to new areas on agricultural materials such as soil, seeds, homegrown produce, and plants. *********************************************************************************** FMC Collaboration Seeks Improved Farm Safety in Ukraine FMC Corporation and The HALO Trust this week announced a new collaboration to improve farm safety in Ukraine. Under its Cultivating Freedom campaign, FMC will donate three percent of its 2023 sales revenue in Ukraine to significantly expand The HALO Trust's demining efforts. With the funding, The HALO Trust will be able to increase its capacity to remove landmines from Ukrainian farms. FMC president and CEO Mark Douglas says, "This project not only ensures Ukrainian farmers can safely return to their fields for planting and harvest, but it also contributes to improving food security around the globe." James Cowan, CEO of The HALO Trust CEO James Cowan adds the investment "will allow us to invest in the people, equipment and new technology needed for the enormous task of making Ukraine safe from landmines, bombs and shells." The collaboration between FMC and The HALO Trust will start this month in several communities across Ukraine.
| Rural Advocate News | Wednesday April 5, 2023 |
Wednesday Watch List Markets The U.S. Commerce Department's will post the trade deficit for February at 7:30 a.m., including export data USDA will make available later Wednesday morning. The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m. Traders will keep an eye on the latest weather forecasts with warmer temperatures expected in the northern U.S. Plains later this week. Weather A very strong storm system continues to drop snow in the Northern Plains, though that will be diminishing throughout the day. Strong winds in the region will continue blowing snow and blizzard conditions, even after the snow ends. Areas of scattered thunderstorms are found along a cold front stretching from Wisconsin to Texas early this morning, which will continue eastward throughout Wednesday day and Wednesday night. Storms will be capable of all hazards today, with the Great Lakes areas most at risk.
| Rural Advocate News | Tuesday April 4, 2023 |
Study Shows Red Meat Exports Important to Corn and Soybean Industries A new study shows a record value of beef and pork exports brought significant returns to America’s corn and soybean industries in 2022. The independent study done by World Perspectives and commissioned by the U.S. Meat Export Federation says America’s beef and pork exports contributed to an estimated total economic impact of 15 percent per bushel of corn and 13 percent per bushel for soybeans. “For every bushel of corn that we marketed in 2022, a little over $1 was attributed to red meat exports, and with soybeans, pork exports contributed $1.94 per bushel,” says USMEF Chair Dean Meyer. “Pork and beef exports bring critical support to our bottom lines.” Beef and pork exports accounted for 503.4 million bushels of U.S. corn usage, which equates to a market value of $3.4 billion. Pork exports account for 89.7 million bushels of U.S. soybean usage, which equated to a market value of $1.33 billion. *********************************************************************************** Thune Reintroduces Repeal of the “Death Tax” Senator John Thune (R-SD) and 40 colleagues reintroduced legislation to permanently repeal the federal estate tax. The “Death Tax Repeal Act” would end a tax that hits family-run farms, ranches, and businesses hard after the owner’s death. “Agriculture is the backbone of the rural American economy,” Thune says. “Family-owned farms and ranches often bear the brunt of this tax, which makes it difficult and costly to pass these businesses down to future generations.” Todd Wilkinson, president of the National Cattlemen’s Beef Association, says no cattle producers should ever be forced to sell their family’s farm or ranch to pay a tax bill due to the death of a family member. “Repealing the death tax is a commonsense way to keep the farm or ranch in the family,” Wilkinson says. “As a land-based, capital-intensive industry, most cattle families are asset rich and cash poor, with few options to pay tax liabilities.” *********************************************************************************** Dairy Farm Innovations Yield Big Environmental Benefits From parlor to pasture, many advances in dairy farm management are helping drive up dairy farm efficiency in North America, and that helps drive down environmental impact. The Association of Equipment Manufacturers issued a report titled “Environmental Benefits of Modern Dairy, Hay, and Forage Production Technologies.” The report points out several statistics that help quantify the environmental impact of modern dairy practices in North America. As milk yield increased 19 percent over the past 15 years, feed use dropped 15 percent. Land use also dropped 26 percent, greenhouse gas emissions decreased 17 percent, and water use dropped 10 percent. “Over the past 15 years, the industry has gained a better understanding of how to go about managing a dairy animal,” says Chad Huyser (Heiser), president of Lely (LAY-lee) North America. Technology is also helping dairy farmers better understand how to manage some of the cost drivers around dairy more efficiently. *********************************************************************************** Contrasting Soybean Harvests in South America South American countries typically account for almost 55 percent of the world’s soybean supply. A University of Illinois Farmdoc Daily report says South America’s top soybean producers are experiencing varying harvest expectations this crop season. Brazil looks to be on the verge of breaking a record in soybean production. However, Argentina will have its worst harvest in more than 20 years. The contrast in harvest predictions is due to La Niña. Overall, South America’s soybean production is still expected to bypass the previous year, but to a smaller extent than first thought. The consequences of a larger soybean crop in South America, combined with the potential for a larger U.S. soybean crop this fall, could push prices lower. The effects of La Niña this season were more concentrated in southern South America, affecting extreme southern Brazil, Argentina, and Uruguay. Paraguay, the world’s fourth-largest soybean exporter, was spared from the drought’s effects. *********************************************************************************** EPA Comments on National Farmworker Awareness Week Environmental Protection Agency Deputy Administrator Janet McCabe spoke out in celebration of National Farmworker Awareness Week. “During National Farmworker Awareness Week, we applaud more than two million unsung heroes who do the toughest work to help put food on our tables in the United States,” McCabe says. “Farmworkers often work through day and night in the face of challenges like extreme heat to promote healthy and secure food supplies.” McCabe also says she’s seen that firsthand in her home state of Indiana. This week, the EPA is highlighting these unsung heroes and their contributions to the nation. EPA’s mission is to protect human health and the environment, and that includes how its policies and programs support farmworkers and their families across the country. “As an agency, we are committed to continuing to work closely with farmworkers and the broader agricultural community to confront environmental issues and other challenges,” she adds. *********************************************************************************** Farm Credit Merger is Complete Farm Credit Mid-America and Farm Credit Midsouth officially merged on April 1 to become Farm Credit Mid-America. The new association now serves more than 137,000 customers. Those customers live in 391 counties across Arkansas, Indiana, Kentucky, Missouri, Ohio, and Tennessee. “This is an exciting time for Farm Credit Mid-America as we bring our customer-owners and team members together to form an even stronger cooperative,” says Andrew Wilson, Chair of Farm Credit Mid-America’s Board of Directors. “Together, we are fulfilling our purpose to secure the future of rural communities and agriculture by serving their needs with excellence.” Dan Wagner continues to serve as Farm Credit Mid-America’s President and CEO. “With a combined net income of $477 million and $38 billion in total assets owned and managed, we are well-positioned to capitalize on our customers’ opportunities, and we are committed to agriculture and rural communities when challenging times arise,” Wagner says.
| Rural Advocate News | Tuesday April 4, 2023 |
Tuesday Watch List Markets A report on U.S. factory orders in February will be out at 9 a.m. CDT Tuesday and is the only significant report of the day. Traders will check the latest forecast and watch for a possible export sales announcement at 8 a.m. Another winter storm is expected to dump more snow across the Northern Plains Tuesday and Wednesday. Weather A large, strong system will move into the Plains on Tuesday. It has already started a band of heavy snow across South Dakota that will expand through the Northern Plains throughout the day. Strong winds will build across the middle of the country, and where they coincide with the snow will create blizzard conditions. Farther south, it will mean more blowing dust and poor conditions for struggling winter wheat in the drought. Increasing moisture in the middle of the country will produce areas of showers and thunderstorms in several waves, all of which may become severe. A zone from Wisconsin to northeast Texas is in the main risk area for today, which includes large hail, damaging winds, and strong tornadoes.
| Rural Advocate News | Monday April 3, 2023 |
Farmers Planting More Corn and Soybean Acres in 2023 USDA released its Prospective Plantings report showing producers are planting more corn and soybean acres than last year. Farmers intend to plant 92 million acres of corn, up four percent from last year. Soybean growers intend to plant 87.5 million acres this year, up slightly from last year. The all-wheat planted area is estimated at 49.9 million acres, up nine percent from 2022. Winter wheat planted estimates are 37.5 million acres, 13 percent higher than in 2022. Spring wheat acres are expected to reach 11.3 million, 18 percent below last year. All-cotton planted acres are expected to total 11.3 million acres, 18 percent lower than in 2022. USDA also released the Quarterly Grain Stocks report. Corn stocks totaled 7.4 billion bushels, five percent lower than March 2022. Soybeans stored totaled 1.69 billion bushels, 13 percent lower than last year. All-wheat storage totaled 946 million bushels, eight percent lower than March 2022. *********************************************************************************** USDA Expands Margin Protection for Corn and Soybean Growers USDA announced it is expanding the Margin Protection insurance plan. The agency will add more than 1,000 counties to the insurance option that provides coverage against an unexpected decrease in operating margins for corn and soybean farmers. This expansion comes from growing interest among producers and will be available by June 30. Interested producers will need to purchase their coverage by September 30 to be eligible for the 2024 crop year. “Increasing the availability of a program is sometimes the best way we can improve upon an effective program and serve our farmers with more risk management resources,” says Marcia Bunger, administrator of the Risk Management Agency. Margin Protection protects against decreases in margin caused by reduced county yields, reduced commodity prices, increased prices of certain inputs, or any combination of these issues. “This expansion will provide a viable insurance option for so many more farmers across the country,” Bunger adds. *********************************************************************************** Next Generation Fuels Act Reintroduced in the House The Next Generation Fuels Act has been officially reintroduced in the House of Representatives. Several of America’s top agricultural organizations endorsed the move, saying it would help address the country’s most pressing energy issues through a transition to cleaner fuels and vehicles. “The Act would clean up the nation’s fuel supply and transition new vehicles to use cleaner, more efficient fuels that would also lower costs for drivers,” says Tom Haag (Hayg), president of the National Corn Growers Association. “By establishing a clean, high-octane standard for fuel and requiring that sources of additional octane result in at least 40 percent fewer greenhouse gas emissions, automakers could improve fuel efficiency through advanced engines.” Rob Larew, president of the National Farmers Union, says there’s no time to waste. “America’s farmers and ranchers are ready to be part of the global climate solution,” Larew says. “This will benefit farmers, consumers, and the planet.” *********************************************************************************** U.S. Ethanol Gets Full Access to Japan Japan’s Ministry of Economy, Trade, and Industry released its final proposed rule for partial amendment of the “Act on Sophisticated Methods of Energy Supply” structures last week. The act, in place through 2028, allows the country to further contribute to its climate targets through the consumption of lower-carbon ethanol. For the first time, ethanol will successfully access 100 percent of the biofuel market in Japan. Ryan LeGrand of the U.S. Grains Council, Emily Skor of Growth Energy, and Geoff Cooper of the Renewable Fuels Association issued a joint statement applauding the news. “The U.S. ethanol community thanks the Japanese government for recognizing the role ethanol can play in the global effort to address climate change at the same time it takes steps to decarbonize its transportation sector,” the statement says. “Countries around the world are recognizing that biofuels like ethanol are a simple and effective solution to meeting our climate goals.” *********************************************************************************** NCBA, PLC Denounce New Public Land Rule The National Cattlemen’s Beef Association and the Public Lands Council have serious concerns about a new rule from the Bureau of Land Management. The proposed rule is titled “Strengthening the Stewardship of America’s Public Lands” and would completely upend BLM’s multiple-use mandate and jeopardizes the agency’s ability to be a good partner to the ranchers who manage millions of acres across the West. “Ranchers have a reasonable expectation of transparency and predictability when dealing with the Bureau, and this proposed rule falls short on both counts,” says Kaitlynn Glover, executive director of the PLC. “The covert manner in which the rule was developed and announced has left permittees feeling like the rule is either a capitulation to the extremist environmental groups who want to eradicate grazing from the public landscape or a concerted effort to develop rules that preclude ranchers’ input.” She also says BLM will face serious questions needing answers. *********************************************************************************** U.S. Hog Inventory Up Slightly As of March 1, U.S. farms had 72.9 million hogs and pigs. That number is up slightly from March 2022 but down two percent from December 1, 2022. The Quarterly Hogs and Pigs report from the National Agricultural Statistics Service shows that of the 72.9 million hogs and pigs, 66.7 million were market hogs, while 6.13 million were kept for breeding. Between December 2022 and February, 32.1 million pigs were weaned on U.S. farms, up slightly from the same period one year earlier. From December through February, producers weaned an average of 11 pigs per litter. Producers intend to have 2.93 million sows farrow between March and May 2023, and 2.97 million sows farrow between June and August 2023. Iowa hog producers had the largest inventory at 23.4 million head. Minnesota had the second-largest herd at 8.9 million head. North Carolina was third in the country at eight million head.
| Rural Advocate News | Monday April 3, 2023 |
Top 5 Things to Watch - Start of Crop Progress Reports, Recovery From Spring Storms OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of April 2. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Spring storms are no April Fools: Once again, as we look forward into the coming week, we have severe weather during the weekend. DTN weather experts forecasted continued severe storms across the Midwest and Tennessee Valleys as moisture pours in from the Gulf of Mexico, possibly hitting an even wider area than the killer storms of March 24-26. So, the first week of April will see additional recovery efforts from weekend storms. 2. Checking on wheat conditions: We continue to hear reports of failed wheat fields across Kansas and Oklahoma. As the calendar turns to April we have been talking to farmers and agronomists to learn more. 3. Mixed market signals: We'll continue to watch market reaction to the March 31 Quarterly Grain and spring Prospective Plantings reports, which gave a mixed bag of signals for corn and soybeans. Look to see if beans keep their post-report momentum with continued updates in the Markets sections of DTN digital platforms throughout the week and watch our daily market videos on weekday afternoons. 4. Start of crop progress: The weekly USDA Crop Progress reports begin this week, and you'll see our update and take on that Monday afternoon, and on subsequent Mondays. They've become an anticipated weekly feature through the crop season. 5.Other reports of note: Additional reports analysts will watch during the week include: Monday -- USDA's weekly grain export inspections, and foreign manufacturing indices; Wednesday -- U.S. trade deficit and DOE weekly energy inventories; Thursday -- USDA weekly export sales and U.S. jobless claims; Friday -- U.S. nonfarm payrolls and U.S. unemployment rate.
| Rural Advocate News | Monday April 3, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts and pause for a possible export sale at 8 a.m. CDT. Reports of manufacturing indices from several countries will be coming in overnight, joined by a U.S. report for March at 9 a.m. USDA's weekly report of export inspections is due at 10 a.m., followed by the first weekly Crop Progress report of 2023 at 3 p.m. Weather After a weekend that saw heavy snow, blizzard conditions, and widespread severe weather, yet another storm system brewing in the West will do the same early this week. Snow will be building across Wyoming and into South Dakota throughout the day, but really increase across the Northern Plains Monday night and Tuesday. Strong winds are developing in the Central and Southern Plains yet again with potential for more blowing dust and an increased risk for wildfires, especially on Tuesday. Some other batches of rain and thunderstorms will move through the Midwest and Southeast, the latter of which could be severe again. More severe storms are forecast for Tuesday and Wednesday for the middle of the country out of the system.
| Rural Advocate News | Friday March 31, 2023 |
Senate Passes Resolution Overturning Biden Administration’s WOTUS Rule The Senate passed the Congressional Review Act joint resolution of disapproval that overturns the Biden Administration’s Waters of the United States Rule by a 53-43 vote. Senator Shelley Moore Capito (CAP-ih-toe) (R-W.VA.), ranking member of the Environment and Public Works Committee, introduced the resolution in February. The administration introduced a new rule in December 2022 that repealed the Navigable Waters Protection Rule and changed the definition of WOTUS in a way that will significantly expand regulatory authority. “By voting to overturn the president’s waters rule, we are sending a clear, bipartisan message that Congress, even a divided one, will defend working Americans in the face of executive overreach,” Capito says. The National Cattlemen’s Beef Association commended the Senate for passing the resolution. “The president now has a choice: sign the resolution and pull back the rule or turn his back on rural America,” says NCBA President Todd Wilkinson of South Dakota. *********************************************************************************** Poll Shows Voters Want Year-Round E15 A new poll shows overwhelming support among voters for year-round access to E15 across the country. With retail gas prices still high, almost 70 percent of poll respondents support increasing the availability of E15 to help lower fuel prices and support energy independence. Only 13 percent of those surveyed said they didn’t support expanded E15 availability. Meanwhile, 62 percent support recently introduced bipartisan legislation that would allow the lower-carbon E15 blend to be sold year-round nationwide. “We’re pleased but not surprised,” says Geoff Cooper, President and CEO of the Renewable Fuels Association. “Drivers continue to embrace an American-made fuel that’s more affordable and lower in carbon emissions.” Last summer, E15 sold for 20 to 30 cents a gallon cheaper than regular gasoline. Those savings will disappear on June 1 unless Washington takes action. “They need to act quickly to make sure lower-cost E15 is available through the summer driving season,” Cooper adds. *********************************************************************************** Groups Want Tighter Checkoff Rules Over 130 agricultural and food groups are asking the House and Senate Ag Committees for stricter rules that govern checkoff programs. The organizations wrote committee leaders in both chambers to support the Opportunities for Fairness in Farming Act. The groups say the legislation would restore what they call a “minimum level” of oversight. “Several of the mandatory checkoff programs and associated boards have well-documented histories of waste, conflicts of interest, misuse of funding, anti-competitive behavior, and other issues,” the letter says. “For these reasons, many farmers and ranchers across the country have grown disillusioned with the effectiveness of many of these checkoff programs as they operate today.” The legislation would prohibit checkoff programs from contracting with any organization that lobbies on agricultural policy, prohibit employees and agents of the checkoff boards from engaging in activities that may involve a conflict of interest, require publishing of checkoff financial information, and make other changes. *********************************************************************************** Iowa State Releases the 2023 Custom Farming Rates Report Many farmers in rural America hire some custom machine work in their farm business or perform custom work for others. Others may rent machinery or perform other services. To help producers and custom operators examine the current market, Iowa State University Extension and Outreach publishes the Iowa Farm Custom Rate Survey. Most custom farming rates saw an increase of 10-15 percent. Custom planting ranges from $12.50 to $45 per acre, depending on the type of planter and setup. Combining corn showed an average of $41.30 per acre, and combining soybeans averaged $39.90 an acre, an increase of 12.4 percent and 10.7 percent, respectively. ISU Extension says the information in the survey is meant to be a starting point for farmers and agribusinesses to engage in conversations and negotiations. It’s not meant to set the rate for a particular practice or operator. The survey assumed diesel prices would be around $3.39 a gallon. *********************************************************************************** Train Carrying Ethanol Derails in Minnesota A freight train carrying ethanol and corn syrup derailed in a fiery crash near a small Minnesota town in the early hours of Thursday morning. The incident was reported to law enforcement and emergency responders at 1 a.m. and forced residents to evacuate the area. A BNSF Railway train had multiple tankers derail and catch fire on the western edge of Raymond, a small southwestern Minnesota town of fewer than 800 people. The local county sheriff’s office says the train was carrying a “form of ethanol” and a “corn syrup liquid.” BNSF, one of the largest freight railroad networks in North America, is investigating the cause of the incident, and so far, there are no reported casualties, according to ABC News. “The main track is blocked in that area, and an estimated time for reopening the line isn’t available yet,” says spokesperson Lena Kent. “We’re working closely with local first responders.” *********************************************************************************** Sorghum Checkoff Partners with Google to Grow Awareness, Demand The United Sorghum Checkoff Program has announced a strategic partnership with Google to increase sorghum consumer awareness through innovative marketing strategies. USCP is a producer-funded national organization dedicated to improving the sorghum industry and representing sorghum farmers across the U.S. The program will leverage Google’s expertise in digital marketing to create consumer awareness campaigns that promote the sustainability and health benefits of sorghum and its versatility as a food ingredient. USCP recently developed and launched a new campaign for this partnership titled “Sorghum. Food’s Best Kept Secret” to showcase and offer a new whole-grain option for consumers. The campaign’s ads can be viewed on the Sorghum Checkoff’s YouTube channel, “Sorghum. Nature’s Super Grain,” and are powered by Google Ads, leveraging Google’s expertise in digital marketing. “Our partnership with Google will allow us to take our sorghum consumer awareness campaigns to the next level,” says USCP Director of Communications Clint White.
| Rural Advocate News | Friday March 31, 2023 |
Friday Market Watch Markets Reports on U.S. personal incomes and consumer spending are due out at 7:30 a.m. CDT Friday, followed by the University of Michigan's consumer sentiment index at 9 a.m. USDA's Prospective Plantings and Grain Stocks reports are set for 11 a.m., followed by DTN's webinar at 12:30 p.m. Traders will monitor the latest weather forecasts and watch for a possible export sale announcement at 8 a.m. Weather A strong storm system in the Plains will continue east through the Midwest on Friday. Widespread precipitation is developing with this storm, especially across the Midwest early Friday morning. The cold front racing between the Rockies and Appalachians will produce a line of very strong and severe thunderstorms by midday across the middle of the country. A widespread severe weather event is expected from this activity across the middle of the country. A band of heavy snow is also found in South Dakota and Nebraska that will be continuing eastward through the Upper Midwest for Friday and Friday night. Strong winds with the system will create some damage, and in the southwest it will be another day of blowing dust in the drought. Where it coincides with the heavy snow across the north, some blizzard conditions will be possible.
| Rural Advocate News | Thursday March 30, 2023 |
Agriculture Takes the Spotlight on Capitol Discussions on agriculture ran rampant through the halls of Capitol Hill this week, with several high-profile Cabinet officials meetings with legislators. Agriculture Secretary Tom Vilsack fielded questions from Senate and House agriculture and appropriations committees on issues ranging from nutrition assistance to disaster aid, rural broadband funding, the Environmental Protection Agency's pesticide regulation and foreign ownership of U.S. farmland. Just this morning, reauthorization of the Animal Drug User Fee Act (ADUFA) kicked off with a hearing in the House Energy and Commerce Subcommittee on Health, with the subcommittee chair calling for the Food and Drug Administration’s Center for Veterinary Medicine (CVM) to “modernize its review process, so sponsors can continue to bring safe and effective animal drugs to the market” and confirmed the committee’s commitment to reauthorizing these critical user fee programs before the Sept. 30 expiration date. In other news, we finally received word on the administration’s trade agenda, or lack thereof, late last week when U.S. Trade Representative Katherine Tai testified before both the House Ways and Means and Senate Finance Committees. Tai told the committee that lawmakers who have urged her office to return to negotiating traditional free trade agreements, “Needed to wake up to the realities of the new economic order,” and that “we live in a very different world” where “we can't keep doing things the same way.” In addition, she noted the administration would continue pressing Mexico on its biotech corn ban and would not “let this go on indefinitely.”
| Rural Advocate News | Thursday March 30, 2023 |
University of Missouri Releases 2023 Market Outlook The University of Missouri’s Food and Agricultural Policy Research Institute Wednesday released its 2023 U.S. Agricultural Markets Outlook. The report summarizes baseline projections for agricultural and biofuel markets prepared using market information available in January 2023. The report finds that if weather conditions allow crop yields to return to trend-line levels in 2023, prices for corn, soybeans, wheat, cotton and many other crops will likely fall. Higher input costs contributed to a sharp increase in farm production expenses in 2022. A smaller increase is projected in 2023, and lower prices for some inputs will reduce production costs in 2024 and 2025. In 2023, most projected livestock sector prices will fall as supplies rebound and demand growth slows. The one major exception is cattle, where drought and other factors limit the number of animals available for slaughter. Finally, net farm income reached a record level in nominal terms in 2022. The report projects net incomes to decline in 2023 and 2024 as receipts and payments fall. *********************************************************************************** Survey Shows Strong Public Support for Farm Bill Passage Almost three-quarters of Americans say that not reauthorizing the farm bill in 2023 would have a significant impact on the country. The response comes from a new American Farm Bureau Federation poll that explores the public's awareness of the farm bill. The poll, conducted by Morning Consult, showed more than half of respondents said they would be more likely to support their member of Congress if they voted to reauthorize the farm bill. Nearly 70 percent of respondents also identified two areas of the farm bill as top priorities for government funding: risk management programs that serve as a safety net for farmers and nutrition programs that serve as a safety net for families facing hunger. A majority of adults agree that nutrition programs, 68 percent, and risk management, 67 percent, should be top priorities for government funding in the farm bill. Further, the survey found 89 percent of adults trust farmers. *********************************************************************************** Lawmakers Welcome Vilsack Support of PASS Act Agriculture Secretary Tom Vilsack this week expressed support for their Promoting Agriculture Safeguards and Security, or PASS Act. The legislation would ensure USDA is fully involved in reviewing foreign acquisition of American agricultural land and companies, specifically targeting China. Vilsack responded to Representative Rick Crawford's question during a House Agriculture Committee hearing regarding the role of a USDA Secretary on the Committee of Foreign Investment in the United States. Vilsack says, “Being a permanent member would allow us to educate the other members of CFIUS in the United States what to look for and what to be sensitive to when it comes to agriculture and agricultural production.” Crawford, an Arkansas Republican, responded, “It’s time to be proactive in addressing these threats to our food supply and to our producers.” Representative Elise Stefanik, a New Yor Republican, adds the legislation "takes critical steps to ensure we do not concede any ownership of our food supply to those actively working against our security interests." *********************************************************************************** FBN Releases Spring Planting Intentions Report Farmers Business Network this week released its 2023 Planting Intentions Report. The survey, according to FBN, is one of the most accurate in recent years, released ahead of USDA’s Prospective Plantings report Friday. The report found U.S. corn acreage is projected to increase 3.9 million acres to 92.5 million acres in 2023, a 4.45 percent. Meanwhile, U.S. soybean acreage is expected to be at 84.5 million for 2023, 3.4 percent or three million acres lower than last year. U.S. farms are expected to plant 11 million acres of spring wheat in 2023, up only slightly from last year's total. FBN Chief Economist Kevin McNew says, “This report helps decipher how the complex global geopolitical factors, weather conditions, and market demand are shaping farmer decisions for the year ahead.” During March 2023, an electronic survey was distributed to U.S. FBN members. The FBN survey responses accounted for 4.7 million acres of principal crops across the United States. *********************************************************************************** CFTC Charges Chinese National with Fraudulent Scheme to Trade Against Employer The Commodity Futures Trading Commission this week filed charges against a Chinese national, in the Northern District of Illinois Court. CFTC charged Dichao Xie (De-chow Sheah) with a fraudulent scheme in which he misused knowledge of his employer’s trading in feeder cattle futures and options to trade for his own benefit in breach of a duty to his employer. Xie’s trades also constituted illegal fictitious and noncompetitive trades under the Commodity Exchange and CFTC regulations, according to the complaint. The complaint seeks, among other relief, civil monetary penalties, return of any ill-gotten gains, restitution, and permanent trading and registration bans. The complaint alleges that from approximately December 2021 to April 2022, Xie engaged in a fraudulent scheme to misappropriate material, non-public information from his employer in breach of a duty to that employer. Xie misused that information to enter into trades of feeder cattle futures and options fraudulently and deceptively for his personal benefit. *********************************************************************************** Economic Research Service: Georgia Leads U.S. Production of Peanuts New data from USDA’s Economic Research Service finds Georgia leads U.S. production of peanuts, outpacing all other states combined. Peanuts are grown mainly in the South, where the climate is warmer and growing seasons are longer than in northern zones. Most U.S. peanut production comes from six States: Georgia, Florida, Alabama, North Carolina, South Carolina, and Texas. USDA data finds the U.S. peanut crop in 2022 was estimated at 5.57 billion pounds. Accounting for more than 50 percent of all U.S. peanut production, Georgia produced the most peanuts of any state, with a 2022 peanut crop estimated at 2.9 billion pounds. Alabama’s peanut harvest, at 559 million pounds, was a distant second to Georgia, followed closely by Florida with 554 million pounds. The 2022 U.S. peanut crop was nearly 13 percent smaller than in 2021 because of lower acreage and yields. Smaller crops were estimated in all states except North Carolina, where production increased three percent from 2021.
| Rural Advocate News | Thursday March 30, 2023 |
Senators Roll Back EPA WOTUS Rule, Though Veto is Expected OMAHA (DTN) -- Republicans in Congress succeeded in passing a bill through the Democratic-led Senate on a 53-43 vote Wednesday to overturn the controversial waters of the U.S. rule under the Clean Water Act, sending the bill to President Joe Biden, who is expected to veto the measure. The resolution of disapproval matched a bill passed by the House on a 227-198 vote earlier this month. Agricultural groups have been among some of the most ardent critics of the latest attempt to define waters of the U.S. in a federal rule. Groups maintain the new rule is overly broad and could lead to federal regulation of ditches, ephemeral streams and low spots on farmland. Zippy Duvall, president of the American Farm Bureau Federation, called on Biden to follow Congress and rescind the rule. "Farmers and ranchers are committed to protecting the land and water they rely on to grow food for America's families," Duvall said. "Unfortunately, the 2023 WOTUS threatens the progress made to responsibly manage natural resources. We urge President Biden to recognize the concerns from members of both parties and rescind this troubled rule." The White House has said the president will veto the resolution, which would mark his second veto in the past month. Still, a veto on the waters of the U.S. (WOTUS) rule would come essentially while the U.S. Supreme Court has a pending case, Sackett v EPA, that also likely will go a long way in determining whether the latest EPA rule will need to be rewritten. IMPACT ON FARMERS, RANCHERS Senate Minority Leader Mitch McConnell, R-Ky., lashed out at the rule, which he said would affect farmers, ranchers and infrastructure projects. He also pointed to the bipartisan opposition to the rule. "America's farmers and ranchers have tough enough jobs without Washington Democrats inventing new problems," McConnell said. "But yet again, unelected bureaucrats at the EPA are trying to dump massive new regulations onto the heads of the small businesses that feed and fuel our economy. The Biden administration's latest version of the Waters of the United States is not some commonsense conservation measure. It's a radical power grab that would give federal bureaucrats sweeping control over nearly every piece of land that touches a pothole, ditch, or puddle." McConnell also pointed to the pending Supreme Court case. "If the president vetoes it, Americans will need to hope the Supreme Court makes it clear that these EPA bureaucrats are way outside the authority that Congress actually provided in the Clean Water Act." LONG-STANDING BATTLE The Sackett case involves a long-standing battle between an Idaho couple and EPA over whether the Ninth Circuit Court of Appeals followed the proper legal tests for determining whether wetlands qualify as waters of the U.S. The case was argued in October, and a ruling will come sometime this spring. The outcome of the Sackett case will more than likely lead federal courts to either uphold or reject the new WOTUS rule based on the language in the ruling. The bill passed the Senate with the support of every Republican senator along with four Democrats -- Sens. Joe Manchin of West Virginia, Catherine Cortez Mastro and Jacky Rosen of Nevada and Jon Tester of Montana, as well as Sen. Krysten Sinema, I-Ariz. As it is, the latest version of the WOTUS rule is on hold due to court injunctions in Texas and Idaho. Another 24 other states have asked a federal court for a similar injunction. EPA ADMINISTRATOR CRITICIZED EPA Administrator Michael Regan was criticized Tuesday in a House Appropriations Subcommittee hearing about the latest Clean Water Act rewrite. Regan told the subcommittee he doesn't believe EPA expanded federal authority over waters in the new rule. He said the agency believes the new rule "narrowed" the test put forward by the Supreme Court on making Clean Water Act determinations, emphasizing that USDA also supports the rule. Regan, when asked why EPA drafted the new rule before the Supreme Court ruling on the Sackett case, said the agency moved forward because the last rule from the Trump administration also had been rejected by federal courts. "There are also some aspects of this rule that the Sackett case won't touch," Regan said. He added, "And so, what we decided to do was move forward, try to codify a number of exemptions that were requested of us by the agricultural community. And I obviously respect the Supreme Court's position. I will respect the Supreme Court's ruling. What we have now is we can adjust it to what the Supreme Court rules this summer. We will adjust this rule, and we will move forward in a much more expeditious way than waiting to June and then start a two- to three-year rulemaking process. So, I think we are ahead of the curve in terms of having the framework for moving forward."
| Rural Advocate News | Thursday March 30, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and updates of second-quarter U.S. GDP and the U.S. Drought Monitor. The U.S. Energy Department's natural gas storage report is set for 9:30 a.m., followed by USDA's March 1 hog and inventory report at 2 p.m. Weather A strong storm system that has been building in the West the last couple of days is moving into the Plains on Thursday. Strong winds will be the first noticeable change to the region while scattered showers and thunderstorms will develop later in the day across the Plains and into the Midwest. A band of moderate to heavy snow will develop overnight across southeast Montana, northeast Wyoming and South Dakota and continue eastward for Friday. More impacts will be felt on Friday across the eastern half of the country.
| Rural Advocate News | Wednesday March 29, 2023 |
Wednesday Watch List Markets Traders will check the latest weather forecasts and wait to see if USDA has an export sale announcement at 8 a.m. CDT Wednesday. The U.S. Energy Department's weekly inventory report, including ethanol production is due out at 9:30 a.m. Weather A storm system in the West will continue to slowly move through the region on Wednesday with widespread precipitation and wind hazards. It will be a rather quiet day east of the Rockies, with just some isolated showers across the South and a little snow in the Midwest behind a cold front. Temperatures across the north in particular continue to be quite cold for this time of year, limiting snow melt on a large snowpack.
| Rural Advocate News | Tuesday March 28, 2023 |
Biden Asked to Intervene in West Coast Port Labor Talks A large coalition of agriculture and business groups asked President Joe Biden to intervene in the west coast port labor negotiations. In a letter signed by the groups, including the American Farm Bureau Federation, they say, “It is imperative that the administration work with the parties to quickly reach a new agreement and ensure there is no disruption to port operations." The coalition previously voiced concerns when the labor contract expired in July last year. Negotiations have been ongoing for over ten months, with little to no progress towards a new long-term agreement, according to the letter. The letter further states, “the only way to resolve these issues is for the parties to remain at the bargaining table and actually negotiate.” The effort is to encourage the administration to provide any and all support to the parties in their negotiations to reach a final agreement between the International Longshore and Warehouse Union and the Pacific Maritime Association. *********************************************************************************** NCBA Calls for Continued Ban on Paraguayan Beef Imports The National Cattlemen’s Beef Association is calling on Agriculture Secretary Tom Vilsack to continue blocking Paraguay from importing beef to the United States. The effort is in response to the Department of Agriculture releasing a proposed rule that would grant access to Paraguayan beef imports. NCBA Executive Director of Government Affairs Kent Bacus says, “Paraguay has a history of outbreaks of foot-and-mouth disease, and we cannot jeopardize the safety of U.S. consumers and the health of our U.S. cattle herd.” NCBA says the data used to inform the proposal by USDA is nine years old from site visits that occurred in 2008 and 2014. Bacus says the United States has the highest animal health and food safety standards in the world “because we rely on the most up-to-date information and the highest science-based standards.” NCBA adds USDA should not proceed with the application until a thorough review can be conducted with current information that demonstrates Paraguay’s equivalence in animal health. *********************************************************************************** 2022/23 U.S. Sorghum Crop: Highest Quality The U.S. Grains Council’s 2022/23 Sorghum Quality Report for the fourth year in a row, found U.S. sorghum was, on average, graded above the necessary requirements for U.S. No. 1 certification. Released last week, the report provides international customers and other interested parties accurate, unbiased information about the 2022/23 U.S. sorghum crop. USGC Chairman Josh Miller says, “We hope this year’s report helps give our valued trade partners even more confidence in the continued reliability and quality of U.S. sorghum.” A total of 97 samples were collected from 15 participating elevators and one participating farmer in the central and southern regions of the United States. Total sorghum damage came in at 0.0 percent in the aggregate, and broken kernel and foreign material was only 1.4 percent, lower than last year’s results, highlighting the grain’s hardness and how well it survives handling and storage. Additionally, tannins were absent from the sorghum samples for the fourth year in a row and protein content averaged 11 percent. *********************************************************************************** Most Row Crop Acreage Now Managed Using Auto-steer and Guidance Auto-steer and guidance system adoption on U.S. farms increased sharply in the past 20 years, according to USDA’s Economic Research Service. Farmers indicate they use the technology on more than 50 percent of the acreage planted to corn, soybeans, winter wheat, and cotton as of 2019. Adoption rates were 58.4 percent of acres planted to corn in 2016, 55.9 percent of winter wheat acres in 2017, 54.5 percent of soybean acres in 2018, and 64.5 percent of cotton acres in 2019. Economic Research Service researchers examined producer responses from various Agricultural Resource Management Surveys to better understand how auto-steer and guidance systems use has evolved. Using GPS, these technologies visualize and track the position of tractors, harvesters, and sprayers in the field in real time. Autonomous steering permits automatically guided fertilizing, harvesting, and other tasks in the field with minimal involvement from the farmer, increasing field efficiency, reducing operator fatigue, and freeing up operator time in the equipment’s cab. *********************************************************************************** USDA Research: Increasing Vegetable Consumption May Better Mental Health New research finds that increasing vegetable consumption has a positive effect on how happy a person feels. USDA’s Agricultural Research Service says that holds true for adults who consume the daily amount of vegetable servings recommended by the Dietary Guidelines for Americans. Researchers at the Grand Forks Human Nutrition Research Center conducted the eight-week study. The study divided healthy men and women between 18 and 65 years old into two groups. The first group of participants received daily servings of the recommended number and variety of vegetables based on their energy needs during the course of the study. The second group of participants received the same number of interactions and attention from the researchers while maintaining a diet without adding vegetables. All participants completed a questionnaire called the Subjective Happiness Scale, or SHS. Researcher Shanon Casperson says, “Results suggest that increasing the amount of vegetables you eat every day may benefit your mental health.” *********************************************************************************** Fuel Prices Decline Again, GasBuddy Warns of Increase Soon Gas and diesel prices fell again last week. The nation’s average gas price declined three cents to $3.40 per gallon, which is 7.8 cents high than a month ago, but 83 cents lower than a year ago. The national average diesel price dropped 5.9 cents to $4.19 per gallon, 92.7 cents lower than a year ago. However, GasBuddy’s Patrick De Haan warns prices should start moving higher again. De Haan says, “any downward trends are still likely to be temporary and not necessarily long lasting.” GasBuddy cites the start of the upcoming summer driving season as a potential to increase demand and prices, along with the ongoing switch to more expensive summer blends of gasoline. Meanwhile, concerns over the recent banking collapse are fading and oil prices are seeing some strength as Chinese consumption rebounds. However, U.S. retail gasoline demand saw a rise of 0.14 percent last week, which on the surface was much more tame than expected.
| Rural Advocate News | Tuesday March 28, 2023 |
Tuesday Watch List Markets Traders will check the latest weather forecasts and pause at 8 a.m. CDT Tuesday to see if USDA has another export sale to announce. A report on U.S. consumer confidence for March will be out at 9 a.m., the only significant report on Tuesday's docket. Traders are already looking ahead to Thursday's Hog and Pigs report and Friday's Grain Stocks and Prospective Plantings reports. Weather A couple of small disturbances are working their way through the country east of the Rockies on Tuesday, but with limited shower potential. The Gulf Coast will have some heavier showers along a stalled front there. All eyes are focused on the West where another storm system is moving in with widespread heavy precipitation. That storm system will bring widespread impacts to the country throughout the week. Colder temperatures over the northern snowpack continue to limit melting.
| Rural Advocate News | Monday March 27, 2023 |
USTR Hearing Before Senate Committee Gets Testy U.S. Trade Representative Katherine Tai testified before the Senate Finance Committee last week, and the discussion turned contentious. The Hagstrom Report says both Democrats and Republicans had a lot to say about the administration’s agricultural trade policies. Committee Chair Ron Wyden (D-Ore.) said he has real concerns that USTR isn’t doing enough to break down the barriers our exporters face. “I’ll draw a line here – the U.S. cannot conclude agreements with Japan, Indonesia, or the EU that leave issues facing our exports unaddressed,” Wyden said. In other remarks, Tai said she’s open to trade talks with China. “While we keep the door open to conversations with China, including on its Phase 1 agreement commitments,” she said during prepared remarks, “we must also defend our values and economic interests from the negative impacts of China’s unfair economic practices.” Her remarks didn’t indicate specific plans for discussions with China’s new economic team. *********************************************************************************** Planting Survey Shows Smaller 2023 Corn Crop Farm Futures conducted its March survey and found farmers opting for more drought-consistent crops this spring as depleted soil moisture levels present a big challenge for farmers. Steep input costs are also a factor in acreage decisions this spring. As a result, Farm Futures expects that 2023 planted corn acreage will drop one percent from last year to 87.7 million acres. If that corn number is realized, the projected 87.7 million acres would be the smallest-planted U.S. corn acreage since 86.4 million acres got planted in 2009. Survey results show farmers in the Plains have the highest chance of changing some corn acres in 2023. Farm Futures’ soybean estimate of 89.6 million acres is a 2.5 percent increase from last year and would be the second-largest soybean crop on record. Farm Futures’ total wheat estimates are noticeably similar to acreages from a year ago but include 3.4 percent more winter wheat acres. *********************************************************************************** ERS Releases Report on U.S. Export Crop Competitiveness The USDA’s Economic Research Service released a report titled “U.S. Export Competitiveness in Select Crop Markets,” and it showed the U.S. is still the world’s top corn exporter. The report says that export shares and exports-to-production ratios indicate that the United States is still the top exporter of corn, tree nuts, and cotton. However, it also says other competitors have gained shares in the global wheat and soybean markets. “Over the last decade, the U.S. lost its position in the global wheat market as the EU, Russia, and Ukraine gained market shares,” the report says. “Similarly, Brazil and Argentina continue to pose a challenge to U.S. soybean exports.” Brazil has been the largest exporter of soybean oilseed since 2021. The ERS report also shows the United States’ involvement in trade agreements contributes to its export competitiveness. “From 2012 through 2020, the U.S. didn’t establish any new free trade agreements,” the report says. *********************************************************************************** Food Prices Drop Slightly From January and February The Food Price Index averaged 129.8 points in February 2023, down 0.6 percent from January and continuing the downward trend for the eleventh-consecutive month. As of February, the index has dropped 30 points from the peak it reached in March 2022. The marginal decline in February reflected significant drops in the price indices of vegetable oils and dairy together with smaller drops in cereals and meat indices. The sugar price index was the only one to rise sharply, up 8.1 points to 124.9 in February. The Cereal Price Index averaged 147.3 points in February, down a fraction from January and two points above its level one year ago. The Vegetable Oil Price Index averaged 135.9 points, down 4.5 points from January and reaching the lowest level since early 2021. The Dairy Price Index was 131.3 points, 3.6 points lower than in January, and the Meat Price Index dropped fractionally to 112 points. *********************************************************************************** Plant Closure Raises Antitrust Concerns Tyson Foods recently announced it will be closing a Virginia processing plant in May. The two-month notice given to its chicken suppliers has raised concerns among farmers and legal experts about Tyson’s compliance with antitrust regulations. Those regulations require a company like Tyson to give a 90-day notice before they end a contract. The planned closure means chicken producers are scrambling to find new buyers in a region with few or no options. Reuters says there may be forthcoming fines for Tyson under the Packers and Stockyards Act, the U.S. antitrust law requiring the minimum advance warning. However, Tyson says it’s not canceling any farmers’ contracts and will pay the growers for the full remainder of their contracts, keeping them in compliance with federal antitrust regulations. Antitrust issues in meatpacking have been a priority for the USDA because four companies control up to 85 percent of the beef, pork, and chicken markets. *********************************************************************************** Kansas Winter Wheat Struggling with Drought Spring is typically a good time for rain on winter wheat. However, intense drought conditions in western Kansas continue to hurt winter wheat. Less than 20 percent of Kansas winter wheat is in good to excellent condition. The U.S. Drought Monitor says only 15 percent of Kansas’ acres are not experiencing any level of drought stress. More than 36 percent of the state reported D4 exceptional drought compared to just a little over one percent last year. D3 extreme drought conditions are hurting 16 percent of the state, with D2 severe drought hitting 13 percent of Kansas. Dennis Todey of the Midwest Climate Hub says the best chance of precipitation this spring is in the areas currently experiencing extreme drought to exceptional drought. Still, he says it’s going to be very hard to eliminate the drought in those areas. Todey says the worst drought is outside of corn and soybean growing areas.
| Rural Advocate News | Monday March 27, 2023 |
Top 5 Things to Watch - Reports, Reports and Weather Reports OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 26. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Beware of corn and bean bears: The DTN commodity analyst team is continuing to watch for bearish market news as interest rates, bank closures and renewed saber rattling on the Black Sea grains front take headlines. DTN subscribers will know that we've recently made several marketing recommendations via our Six Factors Strategies. 2. Big grain reports: March 31 sees the release of the USDA Quarterly Grain Stocks report and the spring Prospective Plantings report. Watch for Hultman's preview of those reports midweek. Coverage of the actual reports will hit right after 11 a.m. CDT on Friday, with updates throughout the morning. 3. The week will also include: Monday -- USDA's weekly grain export inspections; Tuesday -- U.S. consumer confidence index for March. Wednesday -- DOE weekly energy inventories; Thursday -- USDA weekly export sales, U.S. jobless claims, Q2 update of U.S. GDP numbers and the quarterly hogs and pigs inventory. 4. Spring storms roll in: As we write this, severe weather appears likely for Tennessee Valley March 25-27. This is on top of the flooding and other rain damage in Missouri, Texas and Oklahoma. The states of Tennessee, Kentucky, and down into Alabama have certainly had their share of rough early spring weather the past few years. We're also watching the Southern Plains area for March 30 weather. Weather models show another big ol' doozy of a storm churning up for that area. "Big ol' doozy" is an official meteorological term, by the way, according to DTN resident cloud whisperer John Baranick. 5. Vilsack talks to Congress: There were lots of conversations around expectations for the 2023 Farm Bill and ag spending in general last week during the Ag Day celebrations in Washington, D.C. Those talks continue with Agriculture Secretary Tom Vilsack testifying before the U.S. House Agriculture Committee on Tuesday. We'll watch for insights around those questions and, more importantly, the answers.
| Rural Advocate News | Monday March 27, 2023 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts, especially for rain prospects in Brazil and have grown accustomed to expecting a daily corn sale announcement from USDA at 8 a.m. CDT. USDA's weekly export inspections report is due out at 10 a.m. and is the only significant event on Monday's docket. Weather A cold front that stalled out in the Southeast over the weekend and brought heavy rain while severe weather remains active. A weak system is moving through the Central Plains with some areas of snow that may be moderate in spots. Other small areas of showers dot the U.S. on Monday. Cold morning temperatures in the southwestern Plains may be causing more damage to more-advanced wheat as this area yet again misses out on precipitation.
| Rural Advocate News | Friday March 24, 2023 |
Midwest Farmers Planting More Corn and Wheat Midwestern farmers are planning to plant more corn and wheat this spring. An Ag Access survey says farmers will add 27 percent more acres to corn and 32 percent more to wheat. A smaller percentage, at 17 percent, says they’ll increase their soybean acres. The survey results match up with USDA projections at its recent Ag Outlook Forum. The agency forecasts corn plantings at 91 million acres, up from 88.6 million in 2022. Wheat plantings will be 49.5 million acres, up from 45.7 million in 2022. Soybean acres will total 87.5 million acres, unchanged from last year. USDA Chief Economist Seth Meyers says the increase in wheat acres is in response to tight supplies and high global prices brought on in part by the war in Ukraine. The Ag Access survey also asked farmers about their top concerns for 2023. Ninety-three percent said their top answer was high input costs. *********************************************************************************** Farmers Face Extreme Variation in the Price of Inputs Farmers Business Network released its 2023 Ag Chemical Price Transparency Report which highlights the extreme price variation facing farmers. The report collected information from 37 states and accounts for over 800 insecticides, fungicides, and herbicides. “The last two years have seen extreme fluctuations in chemical pricing for farmers,” says Kevin McNew, chief economist and VP of FBN Research. “Providing more transparency enables producers to make more informed buying decisions to drive ROI from every input dollar.” Across 236 different chemical products, there was a 15 percent variance, on average, between the average list price of a product and the price farmers actually paid for it. For example, the average list price for Roundup PowerMAX 3 in June 2022 was $60 per gallon, but farmers paid between $45-$73 during that time. FBN says extreme farmer-to-farmer variability suggests that chemical markets make it challenging for farmers to get uniform costs for ag chemicals. *********************************************************************************** Next Generation Fuels Act Reintroduced in the Senate The Next Generation Fuels Act was reintroduced in the Senate, a move that drew praise from the National Corn Growers Association. The legislation, one of NCGA’s top agricultural advocacy priorities, would lower fuel prices, reduce carbon emissions, and help keep America’s energy secure. The Act would clean up the nation’s fuel supply and transition new vehicles to use cleaner, more efficient fuels that also lower costs for drivers. It would establish a clean, high-octane standard for fuel and require that sources of additional octane result in at least 40 percent fewer greenhouse gas emissions. That would allow automakers to significantly improve vehicle fuel efficiency through advanced engines. The legislation builds on the nation’s clean energy progress by advancing higher ethanol blends and new vehicles that work together to deliver greater emissions reductions, cost savings, and consumer choice. The Act would also permanently remove barriers that prohibit access to year-round ethanol. *********************************************************************************** Bankers Report an 8.1 Percent increase in Farm Bank Lending Despite numerous headwinds in 2022, agricultural lending by U.S. farm banks increased by 8.1 percent in 2022 to $103.1 billion. The American Bankers Association’s annual Farm Bank Performance Report says the change is due to a 9.7 percent increase in outstanding loans secured by farmland and a 5.9 percent increase in agricultural and production loans. The report also says farmland continues to provide a strong equity base for producers to tap as land values saw strong growth in 2022 after staying flat for several years. The bankers say the ag sector will face continued challenges in 2023 due to monetary policy actions targeting persistent inflation in the U.S. and continuing geopolitical uncertainty. The report also shows farm banks are a major source of credit to America’s small farmers. Banks held more than $43.8 billion in small farm loans, including $9.3 billion in micro farm loans at the end of 2022. *********************************************************************************** Ethanol Output Drops Below One Million Barrels a Day The Energy Information Administration says ethanol production dropped below an average of a million barrels a day during the week ending on March 17. That’s the first time production dropped below that mark in over two months. Output totaled 997,000 barrels a day, on average. That’s down from 1.04 million barrels a day during the prior week and the lowest since the seven days ending on January 6. The country’s largest-producing region is the Midwest, which saw production drop to 954,000 barrels a day from 966,000 the previous week. That’s also the lowest since early January. Gulf Coast production dropped an average of 8,000 barrels to 24,000 barrels per day. East Coast and West Coast production totals were the only ones higher than the prior week, with each rising about 1,000 barrels to an average of 11,000 and 5,000 barrels a day, respectively. Stockpiles averaged about 26.188 million barrels a day. *********************************************************************************** Nomination Open for American Lamb Board Members Nominations for new members of the American Lamb Board must be submitted by certified nominating organizations and are due to the USDA’s Ag Marketing Service by May 5. The Secretary of Agriculture appoints the board members from the nominations. USDA is looking for a producer with 100 or fewer lambs, a producer with more than 500 lambs, a feeder with 500 or fewer lambs, a first handler, and a seedstock producer. One of the producer representatives must be from Region One, east of the Mississippi River. The board positions for feeder, first handler, and seedstock representatives are not limited to geographic location. Board members who have completed two consecutive three-year terms are not eligible for reappointment to the ALB. Each vacant position needs a minimum of two nominations. The 13-member board maintains and expands markets for sheep and lamb products. Board members come from both east and west of the Mississippi River.
| Rural Advocate News | Friday March 24, 2023 |
Friday Watch List Markets A report on February U.S. durable goods orders will be out at 7:30 a.m. CDT Friday, the only significant report of the day. Traders will continue to monitor the latest weather forecasts and keep an eye on financial markets. Traders will also pause at 8 a.m. CDT, having gotten accustomed to USDA announcing a corn export sale. Weather Widespread rain and thunderstorms are occurring along a stalled front in the Ohio Valley back to a system moving through the Southern Plains. Thunderstorms are strong Friday morning across Oklahoma and Texas and will move through the Lower Mississippi Valley later Friday with significant risks of severe weather. Meanwhile, heavy rain will continue in the Ohio Valley. As the system moves northeast along the front later Friday night, a band of snow will develop across the Midwest and could be heavy for a small stripe from eastern Iowa through Michigan.
| Rural Advocate News | Thursday March 23, 2023 |
Federal Court in North Dakota Weighs Granting WOTUS Injunction LINCOLN, Neb. (DTN) -- Over the objection of EPA attorneys, a federal judge on Wednesday granted agriculture groups' motion to intervene in an ongoing lawsuit filed by 24 states challenging the Biden administration's waters of the U.S. rule. Though the WOTUS rule took effect on March 20, the U.S. District Court for the District of North Dakota also is considering a motion filed by the states for a preliminary injunction. Earlier this week the U.S. District Court for the Southern District of Texas granted a preliminary injunction to the states of Texas and Idaho, while denying a motion to intervene and a motion for a national injunction filed by ag groups including the American Farm Bureau Federation. The federal judge in North Dakota was much more lenient in granting ag groups' motion to intervene. "In the Southern District of Texas litigation, as in this case, the defendants asserted no preliminary injunction should issue but, alternatively, asserted any injunctive relief should be geographically limited to the plaintiff states," Judge Alice R. Senechal said in the court's decision. "Because defendants oppose nationwide injunctive relief, movants contend the only avenue open to organizations such as theirs with nationwide interests is to file separate actions covering the entire nation. And they point to litigation over the 2015 WOTUS rule -- where several courts enjoyed enforcement in only states that were parties to the litigation -- as 'instructive.' In fact, the injunction recently issued in the Southern District of Texas applies only in the two states that are plaintiffs in that case." The court granted the ag groups' motion in part because otherwise they would face the possibility of filing separate lawsuits in the each of the 24 states. States filing the lawsuit include Alabama, Alaska, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia and Wyoming. Their lawsuit alleges EPA and the U.S. Army Corps of Engineers have "toppled the cooperative federalism regime" by implementing a rule that is "overbroad and hopelessly vague." The interest groups allowed to intervene include the American Farm Bureau Federation, American Petroleum Institute, National Cattlemen's Beef Association, National Corn Growers Association, National Pork Producers Council, Public Lands Council, U.S. Poultry and Egg Association as well as state-level ag groups and construction interest groups. "Keeping in mind the premise that any doubts should be resolved in favor of intervention, in this court's view, movants have established that their interests are not adequately protected by the existing parties," the court said. The 24 states have asked the federal court in North Dakota to vacate the Biden administration's iteration of the WOTUS rule and to find it unlawful, and to prevent the agencies from enforcing the rule.
| Rural Advocate News | Thursday March 23, 2023 |
Coalition Calls for Farm and Food Business Technical Assistance in the Farm Bill An agriculture-focused coalition Wednesday asked the House and Senate Agriculture Committees for dedicated funding for business technical assistance and farm viability in the upcoming Farm Bill. American Farmland Trust, the Agricultural Viability Alliance, and a national coalition of agricultural organizations, service providers, nonprofits, businesses, lending institutions, and government entities made the request in a letter to lawmakers. The call for dedicated Farm Bill funding builds on work that AFT, in partnership with the Agricultural Viability Alliance, began in 2021 requesting USDA to set aside a portion of Coronavirus relief funding for one-to-one business technical assistance. Business technical assistance covers a wide range of one-to-one services offered to farm and food businesses by nonprofit organizations, state agencies, private consultants, and extension services. Customized to meet the unique needs of individual businesses, these services include coaching, skill development, and planning related to financial and labor management, marketing and business strategies, farm transfer and succession, and access to land and capital. *********************************************************************************** Grains Council Signs Ethanol MOU in Panama The U.S. Grains Council this week signed an ethanol memorandum of understanding with the Industrial Association of Sugar Cane of Panama. The signing came as part of a USDA trade mission to South America. The Grains Council held a regional seminar in Panama City that brought together stakeholders and government officials from Central American countries and the Dominican Republic to learn about ethanol and gasoline blending in the region. The MOU recognizes the importance of assessing the role and benefits of biofuels and ethanol in promoting economic growth, diversification of the energy matrix and decarbonization of transportation in the global energy transition to address global greenhouse gas emissions. USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor says, "This MOU bolsters economic and energy security through both domestic production and strengthening trade ties between our two nations." Global ethanol consumption has grown from 16 billion gallons in 2010 to more than 27 billion in 2022. *********************************************************************************** NCGA to EPA: Ensure Consumer Access to Higher Ethanol Blends The National Corn Growers Association urged EPA officials to implement a petition from Midwest governors that would remove barriers to higher blends of ethanol and avoid further delay. EPA’s public hearing reviewed the agency’s recent proposal to implement a plan from eight Midwest governors to require lower-volatility gasoline so drivers in those states continue to have year-round access to fuel with 15 percent ethanol, often marketed as Unleaded 88. EPA has proposed delaying implementation of the governors’ plan until 2024. NCGA President Tom Haag took issue with the delays to date and urged EPA to avoid further delays in implementation. He also highlighted the emissions reduction benefits of E15 and the current cost savings of up to 20 cents or more per gallon when drivers choose E15. Haag says, “we now strongly urge EPA to implement this rule with an effective date of April 28, 2024 -- as proposed --without further delay.” *********************************************************************************** USDA Announces Investments in School Meals The Department of Agriculture Wednesday announced new investments to provide healthy school meals to students. USDA announced several actions to expand support and access to the school meal program including $50 million in grants to increase collaboration between schools, food producers and suppliers. Agriculture Secretary Tom Vilsack says, "Continuing to make school meals healthier and available to more students are some of the best ways we can help our children thrive early in life." Grants were awarded to Boise State University, the Chef Ann Foundation, Full Plates Full Potential and the Illinois Public Health Initiative. USDA says the grants will foster innovation in the school food marketplace to get a wider variety of healthy, appealing foods into the marketplace and onto kids' lunch trays. Schools and other eligible organizations can apply for the challenge sub-grants later this year and are encouraged to check the USDA’s Healthy Meals Incentives website for updates. *********************************************************************************** Commodity Classic 2023 Sets Record Attendance Organizers of the 2023 Commodity Classic announced more than 10,400 attendees were at the event in Orlando earlier this month. The 2023 event broke the previous Commodity Classic record of 9,770 attendees from New Orleans in 2016. Commodity Classic co-chair George Goblish says, "We knew going into the event that registration was up 30 percent over last year, but to have a record-breaking show just blew us away." Co-chair Kenny Hartman of Illinois added, "There's nothing like connecting in person, and it just felt like everyone was so excited to come together again to see the best agriculture has to offer. This year's event featured more than 30 educational sessions, a sold-out trade show with more than 400 exhibitors, a keynote address by Agriculture Secretary Tom Vilsack, and policy meetings of the sponsoring commodity associations. The 2024 Commodity Classic will be held February 29 - March 2, 2024, in Houston, Texas. For information, visit CommodityClassic.com. *********************************************************************************** Lawmaker Seeks to Ensure AM Radio in All Vehicles Representative Josh Gotthemier this week urged electric vehicle manufacturers to include AM radio in their cars and trucks. The New Jersey Democrat says, "I would think that if Elon Musk has enough money to buy Twitter and send rockets to space, he can afford to include AM radio in his Teslas." The lawmaker says that despite the public safety uses of AM radio, many EV manufacturers have stopped including AM radio in their vehicles. AM radio is the backbone behind America's National Public Warning System, which provides emergency-alert and warning information to the public during major natural disasters and domestic threats. Gottheimer is writing to major EV auto manufacturers urging them to reconsider their decision to discontinue AM radio in their cars. Gottheimer also called on the National Highway Traffic Safety Administration to add AM radio to the Federal Motor Vehicle Safety Standards to require that all automakers include AM radio as a stock feature in their vehicles.
| Rural Advocate News | Thursday March 23, 2023 |
Thursday Watch List Markets USDA's export sales report is out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. February U.S. new home sales are set for 9 a.m., followed by weekly U.S. natural gas storage at 9:30 a.m. USDA's monthly cold storage report will be released at 2 p.m. Traders will continue to monitor the latest weather forecasts and are in the habit of expecting an export sale announcement at 8 a.m. Weather A cold front from Texas through the Midwest is going to be fairly active on Thursday as a system moves out of the Southern Rockies and attaches itself to the front. That will increase the risk of severe weather across Oklahoma and Texas later Thursday and Thursday night, mostly with a hail threat. Heavier rain and thunderstorms are going to develop along this front, which could lead to some areas of flooding going through Friday from Oklahoma through the Ohio Valley.
| Rural Advocate News | Wednesday March 22, 2023 |
NASDA Releases Feeding the Economy Report As part of the National Ag Day Celebration Tuesday, the National Association of State Departments of Agriculture released its annual Feeding the Economy Report. The data shows food and agriculture industries and their suppliers contribute over $8.6 trillion to the U.S. economy. NASDA CEO Ted McKinney says the report "proves our industry's continued strength across the states and around the globe." This year's report shows the U.S. food and agriculture sector directly supports nearly 23 million jobs, provides $927 billion in wages, and is particularly vital to rural communities across America. Notably, the 2023 report reveals that manufacturing agricultural products accounts for nearly one-fifth of total manufacturing jobs in the United States. Overall, more than 46 million jobs are supported across the food and agriculture supply chain, increasing nearly two percent since the 2019 report despite the economic challenges and disruptions associated with the global pandemic. Find the report at feedingtheeconomy.com. *********************************************************************************** Biden Creates new National Monuments to Conserve Land and Waters President Biden Tuesday announced two new actions to conserve and restore lands and waters across the nation. The effort includes establishing the Avi Kwa Ame (Avak-yuh-ah-may) National Monument in Nevada and Castner Range National Monument in Texas. The Avi Kwa Ame National Monument in Nevada will honor Tribal Nations and Indigenous peoples while conserving public lands and growing America’s outdoor recreation economy, according to the White House. The Castner Range National Monument will expand access to the outdoors for the El Paso community while honoring veterans and servicemembers. Together, these new national monuments protect nearly 514,000 acres of public lands. The President also directed the Secretary of Commerce to consider initiating a new National Marine Sanctuary designation within 30 days to protect all U.S. waters around the Pacific Remote Islands. If completed, the new sanctuary would ensure the U.S. will reach the President's goal of conserving at least 30% of ocean waters under American jurisdiction by 2030. *********************************************************************************** New Coalition Calls for Robust Farm Bill Agriculture and Nutrition Funding Feeding America this week announced the launch of Farmers Feed America. The organization says the broad coalition shows that farmers and food banks are united in calling for a strong 2023 Farm Bill that meets the needs of America's farmers and protects federal nutrition programs. The new nonpartisan coalition comprises farmers, food companies, food retailers, and hunger-relief organizations, including Feeding America and the American Farm Bureau Association. This year's farm bill reauthorization process is an opportunity to reflect on the innovations that worked during the pandemic and apply those learnings to future food and nutrition policy, according to the organization. The Farmers Feed America coalition has come together to establish shared principles for the next farm bill that help meet the continued needs of communities facing hunger, bolster the nation's food resilience, and enhance markets for farmers and ranchers. The coalition urges members of Congress to adopt these principles as they write the 2023 Farm Bill. *********************************************************************************** USDA Announces Wildfire Prevention Investments The Department of Agriculture this week announced the first investment of a $1 billion effort to mitigate wildfire risks as the nation faces an ongoing wildfire crisis. USDA announced a $197 million investment for 100 projects that benefits 22 states as part of the Community Wildfire Defense Grant program. USDA's Forest Service worked with states and tribes through an interagency workgroup to develop the Community Wildfire Defense Grant program, originally announced in June 2022. Grant proposals underwent a competitive selection process, including review panels of state forestry agencies and tribal representatives. The agency used the three priorities outlined in the Bipartisan Infrastructure Law to narrow down the communities in greatest need. These priorities included communities impacted by severe disasters, those with high or very high wildfire hazard potential or classified as low income. The initial round of investments will assist communities in developing Community Wildfire Protection Plans, key roadmaps for addressing wildfire risks locally. *********************************************************************************** Food Retail Concentration Increases as Geographic Area Shrinks New data from USDA’s Economic Research Service shows food retail concentration increases as geographic area shrinks. The food retail market comprises individual firms, such as grocery stores and supercenters, that sell food products to consumers. The concentration of these retailers’ shares of the market increased over the last three decades at the national, State, Metropolitan Statistical Area, and county levels in the United States. USDA uses the HHI index to calculate concentrations. HHI values range from 0 to 10,000, with higher values reflecting higher levels of market concentration, fewer firms, or increasing disparity between the size of the firms in the market. On average, food retail concentration is higher at the Metropolitan Statistical Area level than at the national level, and concentration is even higher once the market is defined at the county level. As the geographic market area shrinks, the market concentration in 2019 increased from 593 nationally to 1,300 at the state level, 1,800 at the Metropolitan Statistical Area, and 3,700 at the county level. *********************************************************************************** Sorghum Ups Investment Game with Venture Capital Platform Launch The Collaborative Sorghum Marketing Transformation Program Tuesday announced the launch of a venture capital platform. The platform is dedicated exclusively to attracting capital for companies, projects and innovations that create opportunities for sorghum farmers. Board Director JB Stewart of Oklahoma says, “The number of opportunities to add value to sorghum farmers by attracting capital to our industry is truly unprecedented.” The program matches private capital with funding to support startups and established companies investing in sorghum and facilitates a network of private investors seeking opportunities for competitive returns in agriculture. Fueled by relationships across the sorghum industry and the supply chain, the program leverages knowledge and financial flexibility to support startups, existing companies and investors bringing innovation to the sorghum industry. Known as cSmart, the program is a 501(c)(3) nonprofit that comes alongside private investors by providing funding to startups and established businesses seeking to add new value to sorghum farmers.
| Rural Advocate News | Wednesday March 22, 2023 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m. CDT Wednesday, the only significant report of the day before the Federal Reserve announces its decision on interest rates at 1 p.m. Traders will continue to monitor the latest weather forecasts, especially in Brazil and have gotten in the habit of expecting an export sale announcement at 8 a.m. Weather Several storm systems are passing through the country on Wednesday morning. Some are coming and some are going, producing widespread areas of precipitation for much of the country throughout the day. This may turn into a band of moderate snow across Nebraska and into Iowa Wednesday night, along with a small potential for severe thunderstorms from northern Missouri into northern Indiana Wednesday evening as well. A cold front separates cold air in the north from warm air in the south while winds whip through the Southern Plains for yet another day.
| Rural Advocate News | Tuesday March 21, 2023 |
NCBA Concerned with District Court Decision to Let WOTUS Rule Stand The Biden administration's version of the Waters of the U.S. rule went into effect Monday. The National Cattlemen's Beef Association expressed displeasure in a District Court decision to deny a preliminary injunction of the rule. NCBA President Todd Wilkinson says, "This latest WOTUS rule will place more burdens on family farms and ranches, drive up costs, and prevent cattle producers like me from making investments in our land." The Environmental Protection Agency finalized the latest WOTUS rule at the end of 2022. NCBA and its litigation partners filed a lawsuit seeking to overturn the rule on January 18, 2023. NCBA sought a nationwide preliminary injunction, which would have prevented the federal government from implementing the WOTUS rule until the entire case is decided. Instead, the court granted a limited injunction in only two states—Texas and Idaho. NCBA Chief Counsel Mary-Thomas Hart adds, “The court’s decision to keep the Biden administration’s WOTUS rule in place is concerning and irresponsible.” *********************************************************************************** UN Reaches Black Sea Grain Initiative Extension The United Nations Secretary-General over the weekend announced an extension of the Black Sea Grain Initiative. The announcement came at the last minute as the agreement was set to expire. The Initiative facilitates the safe navigation for the exports of grain and related foodstuffs and fertilizers, including ammonia, from designated Ukrainian seaports. During the first two terms, some 25 million metric tons of grain and foodstuffs have been moved to 45 countries, helping to bring down global food prices and stabilizing the markets. The Black Sea Grain Initiative, alongside the Memorandum of Understanding on promoting Russian food products and fertilizers to the world markets, are critical for global food security, especially for developing countries. The original agreement was signed in July of 2022 to address the need for Ukraine to export agricultural products during the Russia-Ukraine war. Ukrainian officials indicate the agreement was extended for another 120 days. *********************************************************************************** AFBF Hails Bipartisan Effort to Freeze Flawed Wage Rate The American Farm Bureau Federation urges Congress to pass legislation to freeze the flawed 2023 Adverse Effect Wage Rate, or AEWR (a-were). AFBF says the rate distorts labor costs for farmers across the country who hire nearly 400,000 employees through the H-2A program. The bipartisan Farm Operations Support Act temporarily resets the AEWR at 2022 levels, providing much need wage relief to farm families and giving Congress an opportunity to deliver a fair and reasonable solution. Farm Bureau says the 2023 AEWR rule missed the mark by such a wide margin that farmers in some states experienced required wage increases of more than ten percent after smaller increases last year. The AEWR has significantly outpaced increases in the national average wage for most workers in America for most of a decade. AFBF President Zippy Duvall adds, “Farmers are committed to paying their employees a fair wage, but the new AEWR rule used flawed data to reach a flawed conclusion.” *********************************************************************************** USDA Kicks Off Central America-Dominican Republic Trade Mission Department of Agriculture Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor arrived in Panama City Monday to launch a regional agribusiness trade mission. Taylor and the trade delegation on the trip look to develop stronger ties and build economic partnerships between the United States and Panama and markets throughout the Dominican Republic-Central America Free Trade Agreement region. Taylor says, “I’m confident the next few days will produce mutually beneficial results to help expand trade and increase collaboration on key issues impacting agriculture in the United States and Central America.” Local staff from FAS Panama City will host business meetings between U.S. trade mission delegates and companies from Panama and six other countries seeking to import American food and farm products. The itinerary also includes bilateral meetings with the Panamanian government, retail promotions featuring U.S. products, and a memorandum of understanding signing between the U.S. Grains Council and the Panamanian Sugar Cane National Industry on ethanol blending. *********************************************************************************** USDA Announces No Actions Under Feedstock Flexibility Program USDA's Commodity Credit Corporation announced Monday it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2022, which ends September 2023. The CCC is required by law to quarterly announce estimates of sugar to be purchased and sold under the Feedstock Flexibility Program based on crop and consumption forecasts. Federal law allows sugar processors to obtain loans from USDA with maturities of up to nine months when the sugarcane or sugar beet harvests begin. On loan maturity, the sugar processor may repay the loan in full or forfeit the collateral, sugar, to USDA to satisfy the loan. The program was initially authorized in the 2008 Farm Bill, as an option to avoid sugar forfeitures. Under the Feedstock Flexibility Program, if USDA is faced with the likelihood of loan forfeitures, it is required to purchase surplus sugar and sell it to bioenergy producers to reduce the surplus in the food use market and support sugar prices. *********************************************************************************** USDA: Education Gaps Exist Between Rural and Urban Communities Formal educational attainment in rural America has grown, but rural areas still lag behind urban areas. USDA’s Economic Research Service data shows the share of adults ages 25 and older with a bachelor’s degree or higher increased in rural areas from 15 to 21 percent. In the same time span, the share of adults in urban areas with a bachelor’s degree or higher increased from 26 to 36 percent, widening the rural-urban gap from 11 to 15 percentage points in these two reference periods. The rural-urban gap in the share of people with at least a bachelor’s degree is even larger for younger age groups. In 2017–21, the share of working-age adults, ages 25–64, with at least a bachelor's degree, was 37 percent in urban areas and 21 percent in rural areas. The share of younger adults ages 25–44 with at least a bachelor’s degree was 40 percent in urban areas and 22 percent in rural areas.
| Rural Advocate News | Tuesday March 21, 2023 |
Tuesday Watch List Markets On Tuesday, the second day of spring, February U.S. existing home sales are due out at 9 a.m. CDT. The Federal Reserve begins its two-day meeting with a lot to talk about, but no decision to announce until Wednesday. Traders will continue to monitor weather forecasts and will remain touchy about any new events in the financial sector. Weather The first in a string of storms is moving into the Plains Tuesday, bringing scattered showers to the southeastern Plains into the Midwest and Delta, and a batch of snow to the Northern Plains. Winds again will be breezy for the Southern Plains, which will continue to draw out what available soil moisture exists for areas that are going to stay dry in this active pattern. Speaking of which, the next storm system in the series is moving into California, which will make for two more storm systems for later in the week.
| Rural Advocate News | Monday March 20, 2023 |
Court Puts WOTUS Hold in Texas, Idaho Federal Judge Also Denies Request to Issue a National Injunction LINCOLN, Neb. (DTN) -- A federal judge in Texas granted a preliminary injunction on Sunday, halting the Biden administration's waters of the U.S. rule in Texas and Idaho, pending the outcome of a lawsuit filed by the state of Texas and several industry groups including the American Farm Bureau Federation. U.S. District Judge Jeffrey Brown in the Southern District of Texas in Galveston put the injunction in place as the rule took effect on Monday in the rest of the country. The injunction will remain in place pending consideration of motions to vacate the rule and send it back to the EPA. Brown, a Trump appointee, denied a motion for a national injunction against the new rule by ag groups led by the American Farm Bureau Federation. Texas and five agencies in the state filed a lawsuit against the EPA and the U.S. Army Corps of Engineers on Jan. 18 and a total of 18 interest groups including the agriculture, oil and housing industries filed suit a day later in the same court in Galveston. There are two other lawsuits pending in federal court in North Dakota, where 24 states have sued the Biden administration, and in Kentucky where the state of Kentucky has sued the EPA. In granting the preliminary injunction, Brown found Texas and Idaho have a "substantial likelihood" they would prevail on the merits of the case, would face a "substantial threat" that they would suffer "irreparable injury" without an injunction, that the threat of injury outweighs the "threatened harm" to the party they seek to enjoin and that the injunction was in the public's interest. Brown, however, found the associations also party to the lawsuit, including the AFBF, have not shown "irreparable harm" if a national injunction is not issued. The National Cattlemen's Beef Association said in a statement it was disappointed in the court's decision not to grant a national injunction. "This latest WOTUS rule will place more burdens on family farms and ranches, drive up costs, and prevent cattle producers like me from making investments in our land," NCBA President Todd Wilkinson, a South Dakota cattle producer, said in a statement. "While we appreciate the court's injunction of the rule in Texas and Idaho, we are strongly disappointed in the decision to keep this WOTUS rule in place in 48 states." Brown's ruling was critical of the Biden administration's use of two tests -- significant nexus and relatively permanent -- when making jurisdictional determinations. "Even if the court assumes that Justice Kennedy's significant-nexus test appropriately measures the agencies' jurisdiction under the act, the rule does not accurately reflect his test," Brown said in his ruling. "Indeed, the rule's substantial variance from Justice Kennedy's test compels the court to question its legitimacy and persuades the court that the plaintiffs will likely succeed on the merits. Certainly, the court agrees with the defendants that federally regulating some interstate waters may be necessary to carry out Congress's intent to protect the nation's waters but the court is not convinced that the act's text supports unrestrained federal jurisdiction over all interstate waters. "As explained above, the court finds a substantial likelihood that the 2023 rule exceeds the agencies' statutory authority under the act." Brown's decision was seen as a setback by environmental groups that are defending the Biden administration's approach. "This decision is a setback for the public, which has long depended on the Clean Water Act to safeguard downstream communities and the environment," said Stuart Gillespie, senior attorney with Earthjustice. "We will work closely with our partners to ensure the law and science prevail, and that our communities receive the protections afforded by the Clean Water Act." Texas and the ag groups said in motions the court should stop the agencies from implementing the rule, pointing out their concerns with the reach of the new rule. "The rule abandons any limitation to waters that impact interstate commerce, relying on an arbitrary 'significant-nexus' test that strays far from any legal authority," Texas said in a motion. "Texas asks the court for an injunction to support the public interest and prevent irreparable harm to Texas' sovereignty, its agencies' core objectives and incurrence of unrecoverable costs to comply with a rule unlikely to survive review." Texas argued the WOTUS rule effectively asserts jurisdiction "over non-navigable, intrastate waters based solely on whether the use, degradation, or destruction of the water could affect interstate or foreign commerce." Texas said the rule "unlawfully expands" federal jurisdiction and "arbitrarily casts federal authority over a remarkable array of water features (or dry land). "The issue before the court is whether Texas must incur the burden and expense of complying with a federal 'clarification' while Texas challenges that rule as federal overreach," Texas said in its motion.
| Rural Advocate News | Monday March 20, 2023 |
Organizations Want Congress to Pass TPA America’s top food and ag organizations representing thousands of farmers, ranchers, producers, and workers sent a letter to Congress urging action to improve ag exports. More than 50 of the most influential food and ag groups urged Congress to pass Trade Promotion Authority. TPA is regularly passed by Congress to give the administration objectives and guidance in pursuing tariff-cutting trade agreements. The letter notes when it comes to trade agreements with tariff reduction, the U.S. is falling behind global economic competitors like China and the European Union. “Regrettably, America is falling badly behind,” the letter says. “Between 2010 and 2020, China and the E.U. enjoyed over twice as much advantage from trade agreement tariff reductions as the U.S.” They also say the situation has gotten much worse this decade. “The United States has not implemented a comprehensive trade agreement that opens new markets in more than a decade,” the groups add. *********************************************************************************** USDA Awards Funding to Protect U.S. Cattle From FMD The USDA’s Animal and Plant Health Inspection Service awarded the National Cattlemen’s Beef Association with $445,400 in funding to advance the Secure Beef Supply Plan. The plan would go into effect in the event of a foot-and-mouth disease outbreak in the U.S. “NCBA is grateful for this critical funding to help continue defending the U.S. cattle herd from the threat of foot-and-mouth disease,” says Allison Rivera, NCBA executive director of government affairs. “The Secure Beef Supply Plan combined with USDA’s national vaccine bank provides a strong safety net for cattle producers and multiple tools to mitigate the risk of a potential outbreak.” This funding was made available through the 2018 Farm Bill and shows why continued support and further funding for animal disease preparation measures like the Secure Beef Supply Plan and the National Animal Vaccine and Veterinary Countermeasures Bank are so important as Congress works on the 2023 Farm Bill. *********************************************************************************** African Swine Fever Surging Again in China African Swine Fever is making a resurgence in China and will potentially push prices higher for the most popular protein in the country. Bloomberg says multiple outbreaks have shown up in different parts of the country throughout the winter. Rabobank expects the most recent wave of ASF to significantly lower production capacity and push prices higher during the second quarter of 2023. The outbreak was most severe in the northern regions of the country, and multiple areas are still struggling with the disease. Rabobank estimates say the latest wave has hit 10 percent of the nation’s sow herd, which controls hog production. An outbreak in 2018-2019 decimated China’s pig herd, at the time, the largest herd in the world. The spike fueled inflation as pork is a key element in the Chinese consumer price index. Official estimates say 8-15 percent of total production could be lost in the current outbreak. *********************************************************************************** TFI Happy with Biostimulant Legislation The Fertilizer Institute President and CEO Corey Rosenbusch is pleased with the introduction of the Plant Biostimulant Act. The act, introduced in both the House and Senate, will support the adoption of biostimulants by farmers and provide clarity to the emerging marketplace. Biostimulants have the potential to enhance the existing environmental stewardship of growers and complement their 4R practices. “Biostimulants support environmental stewardship by improving the efficiencies of fertilizer application and soil health while also increasing crop yields,” Rosenbusch says. “With a growing population, demand for agricultural production continues to increase.” He also says biostimulants are a relatively new innovation in agriculture and that there’s great potential in these products. However, there are hurdles to overcome, including the lack of a uniform framework to regulate them as plant nutrition products. “We need the guardrails this act provides to help foster innovation, research, testing, and a path to market these products,” Rosenbusch says. *********************************************************************************** USDA Accepting Applications for 2024 Export Programs The USDA’s Foreign Agricultural Service is accepting applications from eligible organizations for fiscal year 2024 funding for five export market development programs. FAS recently published the FY 2024 Notices of Funding Opportunity for the Market Access Program, Foreign Market Development Program, Technical Assistance for Specialty Crops Program, the Quality Samples Program, and the Emerging Markets Program. Under the Market Access Program, USDA provides cost-share assistance to U.S. exporters and agricultural, fish, and forest product trade organizations for international marketing and promotion of U.S. commodities and products. Under the Foreign Market Development Program, USDA partners with nonprofit agricultural and forest product trade associations to build longer-term international demand for U.S. commodities. The Emerging Markets Program supports technical assistance activities for developing emerging markets for U.S. agricultural, fish, and forest products. The application deadline for the five programs is May 19. For more information on the rest of the programs, go to fas.usda.gov. *********************************************************************************** Drought Relief in the Western U.S. The National Oceanic and Atmospheric Administration says spring flooding is an ongoing problem in the western U.S., especially in California. The abnormally wet winter will further improve drought across much of the western U.S. as a historically-high snowpack melts in the months ahead. Winter precipitation combined with recent storms has eliminated exceptional and extreme drought in California for the first time since 2020 and is expected to further improve drought conditions this spring. Moisture in the spring is expected to improve drought conditions across parts of the Northern and Central Plains. Drought conditions are expected to improve or disappear over the next three months in Florida. Areas of extreme to exceptional drought across parts of the Southern High Plains are likely to persist through the spring season. Drought is also expected to develop in parts of New Mexico. In the Northwest U.S. and northern Rockies, drought conditions are expected to continue.
| Rural Advocate News | Monday March 20, 2023 |
Top 5 Things to Watch - Celebrations, Frosted Wheat and Bank Dramas OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 19. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. Ag's big day Tuesday: March 21 is National Ag Day, as DTN and Progressive Farmer will help celebrate all that is agriculture. 2. Ridin' the fallout: With apologies to those rockers from Champaign, Illinois, we will continue to track the gathering storm of Silicon Valley Bank and other bank failures, along with their ripple effects around the globe. Our focus, as always, is on what it all means to your farming operation. 3. Speaking of storms: Things may be a little quieter on the weather front this week, with less chance of heavy precipitation in the areas that have been dumped on lately. Low temperatures will slow soil drying, however, and there have already been some reports of frost in the southern parts of the hard red winter wheat world. We'll watch for how that's playing out in Texas and Oklahoma wheat fields already hurt by dry soils and high winds. 4. Research falling behind? A House Agriculture subcommittee hearing Thursday will discuss the need to increase research dollars in the next farm bill. Many U.S. land-grant universities make the case we are falling critically behind in public ag research. It's not a new argument, but there are many new ears to hear it. 5. Key economic reports: Bank defaults and Fed intentions may get most of the attention, but there also are several rank-and-file economic reports coming this week that analysts will watch for clues to the state of the general economy. We'll look at existing home sales on Tuesday, Thursday sees new home sales, jobless claims and on the farm side of things we'll watch USDA weekly export sales numbers and the USDA monthly cold storage report. And many eyes will focus on the ongoing Black Sea grain deal, particularly now that there's an international arrest warrant for one Mr. V. Putin.
| Rural Advocate News | Monday March 20, 2023 |
Monday Watch List Markets Back from the weekend, in addition to checking the latest weather forecasts, traders will review reports UBS is buying Credit Suisse for roughly $3.2 billion and will be looking for a better explanation of how long the Black Sea grain deal will be extended for. Traders will also pause at 8 a.m. CDT to see if USDA has another corn sale to report. USDA's weekly report of export inspections is due out at 10 a.m. Weather There is a storm system moving through the Southwest U.S. Monday, but most of the country is quiet and cool. Temperatures early Monday morning are below freezing yet again in the Southeast but will rise early this week. The Southwest system is the first of a string that will move through the country this week, pushing a cold front through the country and offering widespread precipitation to boot.
| Rural Advocate News | Friday March 17, 2023 |
Allendale Predicts Corn and Soybean Planted Acres A farmer survey by commodity brokerage firm Allendale says America’s farmers are expected to plant 90.41 million acres of corn and 87.76 million acres of soybeans this year. Those projected corn planting acres would be below the USDA’s Outlook Forum forecast of 91 million acres but above the 88.57 million acres planted in 2022. Projected soybean plantings would top the USDA forecast of 87.5 million acres and exceed the 87.45 million acres planted to soy in 2022. Allendale predicts the all-wheat plantings at 48.7 million acres, below the USDA prediction of 49.5 million but higher than the 2022 planted area of 45.73 million acres. Allendale projected U.S. farmers’ winter wheat seedings to be 36.52 million acres, below the USDA’s January estimate of 36.95 million acres but up from the 33.71 million acres seeded during 2022. The brokerage and analysis firm projects “other spring wheat” acreage for 2023 at 10.6 million acres. *********************************************************************************** National Wheat Organizations Disappointed in Railroad Merger U.S. Wheat Associates and the National Association of Wheat Growers are disappointed that the Surface Transportation Board approved the merger of the Canadian Pacific Railway and Kansas City Southern Railroad. They believe the STB has given a green light to rail consolidation without regard for the consequences on agricultural shippers from a lack of competition in the U.S. rail sector. “U.S. rail consolidation has led to poorer, not improved, service for agricultural shippers,” says USW President Vince Peterson. “In addition, we see extreme disparity in rates for wheat shippers.” Higher shipping rates make U.S. wheat less competitive in the global market at a time when higher prices already hurt the competitiveness of American wheat. “With 50 percent of wheat getting exported, wheat is heavily reliant on rail transportation to move across the U.S.,” says NAWG CEO Chandler Goule. They say the STB must conduct more rigorous oversight of rail rates and service issues. *********************************************************************************** New SD Law Gives More Protection to Ag Operations A new law in South Dakota makes it harder to file nuisance complaints or lawsuits against an agricultural operation. South Dakota Searchlight says it will also limit the amount of monetary awards. After legislators approved the bill earlier this winter, Governor Kristi Noem signed it at a Mitchell, South Dakota, implement dealership this week. She says agriculture is the state’s “number one industry,” and the law protects farmers from frivolous lawsuits. Provisions in the law say only the owner or lessee of an affected property can file a nuisance action and only if the affected property is within a mile of the operation. Groups like Dakota Rural Action and the Izaak Walton League say the law is unnecessary and goes too far. Additional provisions say the plaintiff must present “clear and convincing evidence” the operation violated local, state, or federal laws. The new law goes into effect on July 1. *********************************************************************************** New AI Platform Will Predict Ag Supply Chain Disruptions Helios (HE-lee-ohs) Artificial Intelligence, Inc. launched the open beta of its platform that will identify agricultural supply chain disruptions ahead of time. The company’s founder and CEO says they’ve created a one-stop platform for agricultural importers to understand the risks to their supply chain and get ahead of their competitors. The AI platform will eventually predict supply availability ahead of a company’s competitors and find alternative suppliers before they do. It identifies climate and economic risks to yields and works with supply chain partners to mitigate them before it’s too late. The AI will also provide actionable input into the negotiation process with insights and access to billions of data points. Existing customers are seeing good results so far. William Hovis, who used to be with Coca-Cola, says when suppliers missed deliveries, the company was missing sales. “Helios provides companies with actionable insights to help them get ahead of competitors.” *********************************************************************************** Bill to Support Cutting-Edge Agricultural Research Senators Michael Bennet (D-CO) and Roger Marshall (R-Kan.) introduced the Advancing Cutting Edge Agriculture Act to support high-risk, high-reward agricultural research and development at USDA. The sponsors say the act will help “secure America’s food supply” and give farmers and ranchers the tools to meet the challenges of the 21st century. “Now more than ever, Americans have seen how vulnerable the nation’s food system can be,” Marshall says. “Targeting the many risks our food system faces through research will ensure that the U.S. continues to provide a safe, secure food supply for a growing world population.” Bennet also notes that family farmers and ranchers face persistent drought, higher costs, extreme weather, and increased global competition, saying, “That makes it more important than ever to invest in cutting-edge research to spur agricultural breakthroughs, including practices to conserve water and cut greenhouse gas emissions.” Companion legislation will be introduced into the House. *********************************************************************************** 2023 Power of Meat Research Released at Annual Meat Conference Last week at the Annual Meat Conference, research from the latest Power of Meat Study showed consumers’ meat usage, attitudes, and trends. The report says 2022 meat sales rose 5.7 percent versus 2021, and almost 87 percent of all home-prepared dinners featured meat or poultry. Also, more than 98 percent of shoppers make meat purchases. Inflation is becoming an issue for the entire meat industry. Consumers spent at least 25 percent more on food in 2022 than in 2019. Economic conditions are prompting 76 percent of Americans to change what groceries they purchase. The POM report says 50 percent of meat eaters purchase meat and poultry for use over the next few days after the sale. Price plays a much more important role among younger meat eaters, while Boomers emphasize quality and appearance. The total package price rose in importance during prior years, but shoppers emphasize value as quality going hand-in-hand with the price.
| Rural Advocate News | Friday March 17, 2023 |
Friday Watch List Markets The Federal Reserve's report on U.S. industrial production is set for 8:15 a.m. CDT Friday, followed by the Conference Board's U.S. index of leading indicators and the University of Michigan's U.S. index of consumer sentiment, both due out at 9 a.m. In addition to monitoring weather and the latest bank news, traders will also pause at 8 a.m. to see if USDA might have a fourth consecutive export sale announcement. USDA's cattle on-feed report for March 1 will be out at 2 p.m. Weather A storm system that brought widespread precipitation to the middle of the country Thursday continues across the East and South on Friday. Most of this will be rain but colder air filtering in behind the system will lead to some areas of snow and lake-effect in the Great Lakes. Colder temperatures down in the Plains may be damaging to more-advanced wheat. Some breezy conditions will continue across the Midwest as well.
| Rural Advocate News | Thursday March 16, 2023 |
Surface Transportation Board Approves CP, KCS Merger The Surface Transportation Board Wednesday approved the Kansas City Southern Railway Company acquisition by Canadian Pacific Railway Limited, with conditions. The decision includes an unprecedented seven-year oversight period and contains many conditions designed to mitigate environmental impacts, preserve competition, protect railroad workers, and promote efficient passenger rail. The Board also anticipates the merger will result in improvements in safety and the reduction of carbon emissions. The companies filed a merger application in October of 2021 with the Surface Transportation Board. The combination of the two railroads, known as Canadian Pacific Kansas City, will create the first railroad providing single-line service spanning Canada, the United States, and Mexico. Yet, the merged company will continue to be the smallest Class I railroad, with a network that is a few thousand route miles shorter than the next smallest Class I and half the size of the Western railroads. *********************************************************************************** Mexico Voices Concern over Product of US Label Mexico’s Agriculture Ministry recently voiced concerns regarding the proposed voluntary “Product of USA” label effort. Announced by Agriculture Secretary Tom Vilsack last week, the label claim would be used on meat, poultry and egg products only when derived from animals born, raised, slaughtered and processed in the United States. Mexico's Agriculture Ministry claims the proposal, "even when it is a voluntary claim, could have implications for discriminating against Mexican exports of live animals and meat products." Mexico is the second largest supplier of beef and beef products to the U.S., representing 24 percent of total U.S. imports. Congress repealed mandatory Country of Origin Labeling for meat products in 2016, after the World Trade Organization approved trade retaliations by Canada and Mexico over the issue. USDA says petitions, thousands of stakeholder comments, and data support its proposal. A comprehensive review in 2021 by USDA “shows there is a clear need to revise” the “Product of USA” label claim. *********************************************************************************** Bipartisan Bill Introduced to Provide Clean Drinking Water for Rural Americans Senators Tommy Baldwin and Susan Collins Wednesday introduced the bipartisan Healthy Drinking Water Affordability Act, or The Healthy H2O Act. Baldwin, a Wisconsin Democrat and Collins, a Maine Republican, say the bill will provide water testing and treatment technology grants directly to individuals and non-profits in rural communities. Currently, nearly 43 million households, primarily in rural communities, rely exclusively on groundwater delivered through private wells for their drinking water. These sources are not subject to the same oversight and testing for contamination of public water sources. Water quality improvement systems installed at the faucet or within a building can provide immediate and ongoing protection from known and emerging water contaminants, like PFAS, lead and nitrates. The bill follows a proposal to create standards for PFAS chemicals in drinking water Tuesday by the Environmental Protection Agency. The legislation would allow the Department of Agriculture to provide grants for testing and removing contaminants from drinking water. *********************************************************************************** Fertilizer Institute Welcomes Lower Energy Costs Act President of The Fertilizer Institute, Corey Rosenbusch, this week welcomed the introduction of the Lower Energy Costs Act. TFI says the legislation will provide a streamlined and simplified permitting process for hard rock mining, including phosphate and potash mining. Rosenbusch says, “Delays are measured in years and in the millions of dollars, with those paying the price being consumers who are already struggling with the rising costs of everyday goods.” The delays Rosenbusch referenced include a permit to mine phosphate in Florida that took nearly ten years and tens of millions of dollars in expert fees, studies, legal analysis, and legal fees, and a mining expansion permit for an existing mine that has been in limbo for over 12 years at a cost of over $25 million that has yet to be approved. The fertilizer industry is asking Congress for a reliable and predictable permitting process to ensure mining projects have a clear path toward compliance and approval. *********************************************************************************** Bills Providing Permanent E15 Fix Introduced in House and Senate The National Corn Growers Association this week applauded legislation that would provide permanent, nationwide market access for E15, often marketed as Unleaded 88. NCGA reports 35 bipartisan Senate and House members introduced the Consumer and Fuel Retailer Choice Act. NCGA President Tom Haag says, "There's no reason for market access to a safe, clean and affordable fuel option to remain in question." Despite EPA approving E15 for use in all 2001 and newer vehicles, and a 2019 update to regulations, a 2021 court decision would have ended year-round market access to E15. Temporary action by the Biden administration allowed E15 sales last summer, but access is in question for 2023. The Environmental Protection Agency proposed implementing a plan from eight Midwest governors to require lower-volatility gasoline in their states to ensure year-round E15. However, EPA has proposed to delay implementation until 2024. NCGA encourages the Biden administration to again provide temporary access for the 2023 summer driving season. *********************************************************************************** Registration Open for World Pork Expo 2023 Registration for the 35th annual World Pork Expo opened this week. The 2023 World Pork Expo, organized by the National Pork Producers Council, will be held at the Iowa State Fairgrounds in Des Moines, Iowa, from June 7-9. This year marks a major milestone for the world’s largest pork-specific trade show. NPPC president Scott Hays says, “We’re looking forward to celebrating the Expo’s incredible legacy this year with an impressive schedule of events.” The 2023 World Pork Expo will feature three days of programming and educational seminars that showcase the pork industry's latest product and process innovations. Additionally, industry professionals will have networking opportunities to meet and connect. Registration is available online and includes entry to the World Pork Expo for all three days. Until June 1, discounted rates are available during pre-registration, including $10 per adult. On-site registration will be $20 per adult. Attendees can register to attend at WorldPork.org.
| Rural Advocate News | Thursday March 16, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, February housing starts and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is out at 9:30 a.m. After two days of corn export sales, traders will be watching to see if another export sale gets reported Thursday and will also have antenna up for any further bank problems. Weather A storm system is moving from the Central Plains to the western Midwest on Thursday. Scattered showers have already developed across South Dakota and Nebraska and will expand across more of the central states throughout the rest of the day. This is including a band of moderate to heavy snow from Nebraska to Lake Superior and potential for severe storms across the southeastern Plains, most notably along the Red River. Winds are also elevated and where it coincides with the snow, could create some blowing snow and visibility issues.
| Rural Advocate News | Wednesday March 15, 2023 |
Consumer Price Index Increases Again The Consumer Price Index rose 0.4 percent in February on a seasonally adjusted basis, after increasing 0.5 percent in January. Over the last 12 months, the all-items index increased 6.0 percent before seasonal adjustment. The food index increased 0.4 percent in February, and the food at home index rose 0.3 percent over the month. The index for nonalcoholic beverages increased 1.0 percent in February, after a 0.4-percent increase the previous month. The indexes for other food at home and for cereals and bakery products each rose 0.3 percent over the month. The index for fruits and vegetables increased 0.2 percent in February, and the index for dairy and related products rose 0.1 percent. In contrast, the meats, poultry, fish, and eggs index fell 0.1 percent over the month, the first decrease in that index since December 2021. The index for eggs fell 6.7 percent in February following sharp increases in recent months. *********************************************************************************** EPA Proposes PFAS Standards for Drinking Water The Environmental Protection Agency Tuesday proposed the first-ever national drinking water standard for PFAS chemicals. As part of EPA's PFAS Strategic Roadmap, the agency proposed to establish legally enforceable levels for six PFAS known to occur in drinking water. The proposal also initiates the distribution of $10 billion in funding to address emerging contaminants under the Bipartisan Infrastructure Law. EPA Administrator Michael Regan says the proposal "would help provide states with the guidance they need to make decisions that best protect their communities." If finalized, the proposed regulation will require public water systems to monitor for these chemicals. Senator Joe Manchin, a West Virginia Democrat, says, "Many farmers, producers and growers, at no fault of their own, have found alarmingly high levels of PFAS in their food products.” Last month, Manchin encouraged the Biden administration to provide funding to help farmers when they are forced to remove their products from the commercial market. *********************************************************************************** More Than 400 Organizations Voice Support for Existing Pesticide Law More than 400 organizations affirmed the support of the pesticide regulatory system under the Federal Insecticide, Fungicide and Rodenticide Act, or FIFRA, in a letter to lawmakers this week. The letter is in response to recently introduced legislation that would undermine the science-based standards contained within our nation's pesticide law. This is the third time these organizations have contacted Congress to voice concern over similar proposed legislation. Crop Life America president and CEO Chris Novak says, "Any legislation seeking to ban individual chemistries and politicize the regulatory process undermines EPA's work and the long-standing laws that serve our nation well." Novak says the proposed legislation would jeopardize the continued availability and innovation of pesticide products by imposing an unscientific and unbalanced process. The proposal could unnecessarily remove pest control options from those who need them to safely grow crops, adopt conservation practices such as conservation tillage and resource-saving crop rotations. *********************************************************************************** USA Rice: India Violating WTO Commitments Data from the Department of Agriculture shows India will continue to dominate the world rice trade in the 2022/23 marketing year. USDA projects India will break its own world record with 22.5 million metric tons of rice exports. In May 2022, the U.S. government along with nine other governments initiated technical consultations with India regarding its trade-distorting rice subsidies. However, to date, the U.S. government has not taken formal action to address India's alleged World Trade Organization violations. Now, the USA Rice Federation is calling for a WTO trade dispute action. "India's policies not only violate their WTO commitments, but also impact the livelihoods of those that produce or consume rice across five other continents," according to Bobby Hanks, USA Rice International Trade Policy Committee chair. Hanks added, "We encourage the U.S. Trade Representative to initiate a dispute settlement action to help American farmers and our counterparts compete on a level playing field." *********************************************************************************** Researchers Aim to Reduce Pesticide Drift in the Lower Mississippi Delta Researchers with USDA's Agricultural Research Service in Mississippi are investigating the best ways of using hooded sprayers to combat drift. Pesticide drift occurs when droplets move through the air to another place other than the target area during or after pesticide application. The research finds using a hooded sprayer can reduce pesticide drift of pre-emergent herbicide applications by 63 percent, in comparison to a nonhooded sprayer. Hooded or shielded sprayers effectively minimized the exposure of herbicide spray to wind and led to fewer off-target depositions. While hooded sprayers have advantages, the presence of a physical shield can pose challenges during road transport or repairing nozzles when compared to conventional sprayers. If a farmer does not have access to a hooded sprayer or prefers to use a conventional sprayer, mitigating pesticide drift is still possible by avoiding high wind speed and high temperature during spraying. Researchers also found reduced drifting with a longer sprayer boom length during pre-emergent herbicide applications. *********************************************************************************** USMEF Announces Spring Conference Details The U.S. Meat Export Federation Tuesday announced the speaker lineup and registration details for its 2023 Spring Conference, set for May 24-26 in Minneapolis. The opening general session will feature USMEF's senior staff from the Asia Pacific region, who will discuss emerging issues in key Asian markets, including how the removal of many COVID restrictions could provide momentum for the region's foodservice sector. The following day, USMEF will examine the state of U.S.-Mexico trade relations. At the closing session, former House Agriculture Committee Chairman Collin Peterson – who oversaw development of four farm bills during his 30 years in Congress – will discuss the challenges lawmakers face as they work to craft an effective, pro-trade farm bill over the coming year. In addition to the general sessions, the Beef, Pork, Exporter and Feedgrain/Oilseed breakouts will provide in-depth discussions on topics relevant to each sector. More information, including registration details, are available on the USMEF website, USMEF.org.
| Rural Advocate News | Wednesday March 15, 2023 |
Wednesday Watch List Markets The U.S. Labor Department's producer price index for February will be out at 7:30 a.m. CDT Wednesday, the same time as a report on February U.S. retail sales. The U.S. Energy Department's weekly report of energy inventories is due out at 9:30 a.m., followed later Wednesday morning by February soybean crush estimates from the National Oilseeds Processors Association. Weather Colder temperatures settled into the southeastern states Wednesday morning, with widespread areas below freezing for the first time in a long time. Another storm system was working through the West, but outside of some breezy winds in the Southern Plains and some snow across the far Northern Plains, will be relatively quiet east of the Rockies today. That storm system in the West will bring more widespread precipitation through the Plains late Wednesday night and Thursday, heading eastward to close out the week.
| Rural Advocate News | Tuesday March 14, 2023 |
Canada Seeks Conversation With Mexico Regarding Biotech Crops Canada requested talks with Mexico regarding its decree banning biotech corn imports. The request came under the U.S.-Mexico-Canada Agreement, just like the request from the United States. The U.S. formally requested technical consultations last week with Mexico regarding the issue, the first step towards a dispute resolution panel under USMCA. Canada is not a major exporter of corn to Mexico, but is concerned about Mexico putting prohibitions on agriculture biotech products, according to Bloomberg. Canada also raised concerns regarding Mexico’s lack of respect for trade regulations agreed to within USMCA. The updated decree by Mexico limits the import and use of biotech corn, including banning white corn exports immediately. Mexico’s economy ministry claims it will “demonstrate with data and evidence that there has not been an effect on trade” and that it has acted in accordance with the USMCA. The United States counters that the decree is not based on scientific evidence that biotech corn is safe. *********************************************************************************** AEM: Combine Sales Growth Continues Tractor unit sales in both the U.S. and Canada stay near their five-year average while combine harvesters in both countries continue triple-digit growth. The latest data from the Association of Equipment Manufacturers released Monday shows that overall U.S. ag tractor unit sales fell for the month of February, despite gains in the 100-plus horsepower and four-wheel-drive segments. Combine sales, however, put up another strong month, rising 165 percent year-over-year. Total farm tractor sales in the U.S. for the month fell 19.4 percent versus February 2022 and are down 17.2 percent year-to-date. In Canada, combine sales were hot again, growing 246.7 percent in February. Overall unit sales in tractors finished the month down 8.1 percent Year to date, tractors in Canada are down 0.5 percent, while combines are up 205.1 percent. AEM’s Curt Blades says, “On the tractor side, most of those losses are the result of overly hot sales of small units during the pandemic.” *********************************************************************************** Meat Plants employed Nearly 31% of US Food Workers in 2021 The latest federal data shows that in 2021, the U.S. food and beverage manufacturing sector employed 1.7 million people, or more than 1.1 percent of all U.S. nonfarm employment. Within the U.S. manufacturing sector, food and beverage manufacturing employees accounted for the largest share of employees, 15.4 percent. USDA’s Economic Research Service Monday announced the data, noting that these employees help to transform raw agricultural materials into food products for intermediate use or final consumption in thousands of food and beverage manufacturing plants located throughout the country. Manufacturing jobs include processing, inspecting, packing, janitorial and guard services, product development, and recordkeeping, as well as nonproduction duties such as sales, delivery, advertising, and clerical and routine office functions. In 2021, meat and poultry plants employed the largest share of food and beverage manufacturing workers at 30.6 percent, followed by bakeries at 14.7 percent, and beverage plants at 12.4 percent. *********************************************************************************** American Farmland Trust Awards Over $1 Million in Microgrants to Farmers For the first time, American Farmland Trust awarded more than $1 million in grants in a single year to 190 farmers across the country. The grants were from AFT’s Brighter Future Fund and the New England Farmer Microgrants Program. Both microgrants programs seek to improve farm viability, facilitate farm transfer and succession, help farmers access farmland, and work to permanently protect farmland for future generations. AFT makes grants to farmers and ranchers to advance AFT’s mission to protect farmland, promote sound farming practices and keep farmers on the land. The grants help drive new solutions for resolving key challenges facing society by increasing the resilience of farms to climate change and reducing greenhouse gas emissions. AFT’s Ashley Brucker says, “we are helping farmers do things like convert a school bus to a mobile farmers market, access legal support for legacy planning and purchase firefighting equipment to cope with wildfires in a drought-stricken area.” *********************************************************************************** FFA Members Prepare for Careers in Animal Systems Pathways FFA members from across the country this spring traveled to Denver, Colorado, to explore careers in the animal systems industry. The 73 FFA members attended the Next Gen Conference, which began in 2020 and focuses on specific pathways, from animal systems to biotechnology systems. Through the event, members access new ideas, trends and opportunities that connect them directly with industry leaders to explore future career paths. The conference is designed specifically to give FFA members hands-on, industry-relevant experience. Members explored diverse animal operations around Denver and learned how to plan for their future careers. In addition, they learned about marketing, new technologies and unique opportunities in animal systems. An FFA spokesperson says the conference helps “cultivate future leaders in the animal systems pathway through a week of experiential learning, relevant education and networking.” The National FFA Organization is a school-based national youth leadership development organization of more than 850,000 student members. *********************************************************************************** Gas Prices Move Higher, Diesel Lower For the second straight week, the nation's average price of gasoline increased, up eight cents from a week ago to $3.44 per gallon. The national average is up 7.1 cents from a month ago but 87.7 cents per gallon lower than a year ago. The national average diesel price fell 4.1 cents in the last week and stands at $4.30 per gallon, 82.1 cents lower than one year ago. GasBuddy's Patrick De Haan says the diesel price "continues to slowly decline as we see consumption for diesel lighten up." Wholesale gasoline prices continue to increase at a rate typical for this time of year, with the transition to more expensive summer gasoline underway. The most common U.S. gas price encountered by motorists stood at $3.29 per gallon, up 30 cents from last week, while the most common U.S. diesel price stood at $3.99 per gallon, unchanged from last week.
| Rural Advocate News | Tuesday March 14, 2023 |
Tuesday Watch List Markets The U.S. Labor Department's consumer price index for February will be out at 7:30 a.m. CDT Tuesday, another factor in the Federal Reserve's interest rate decisions. Traders will pay attention to the latest weather forecasts and any export sales announcements that might come out. USDA's Livestock, Dairy and Poultry outlook is out at 2 p.m. March grain and oilseed futures contracts expire early Tuesday. Weather A ridge developing in the middle of the country Tuesday will keep conditions mostly dry, but a weak disturbance will provide a few isolated showers to areas of the Southern Plains. Over in the West, a strong area of low pressure will continue to provide portions of the Pacific Northwest and California with heavy rain and snow. This system will work into the Great Basin over the next 24 hours and eventually make it into the Plains by Thursday.
| Rural Advocate News | Monday March 13, 2023 |
Higher Interest Rates Slow the Growth in Farmland Values Farm real estate values increased considerably in 2022 but showed signs of softening during the final months of the year as interest rates rose sharply. Interest rates on farm loans jumped to decade highs alongside increases in the federal funds rate. The Kansas City Fed says while the value of most types of farmland continued to rise, the increase was the slowest since early 2021. Agricultural credit conditions remained strong in the fourth quarter and continued to be bolstered by broad strength in the farm economy throughout 2022. The outlook for agricultural credit conditions looking ahead to the rest of 2023 also remained generally positive, despite some ongoing concerns. Elevated commodity prices continued to support profit opportunities for many producers across the farm sector. However, there are persistent concerns about operating expenses, higher interest rates, and intense drought. Improvement in farm income and credit conditions has softened slightly in recent months. *********************************************************************************** USDA Investing $29 Million in More American-Made Fertilizer Production The USDA announced it received over 350 applications for $3 billion in funding to expand domestic fertilizer production capacity. The applications came from 47 states and two territories for the first two rounds of a new grant program to add innovative domestic fertilizer production capacity. USDA also announced the first $29 million in grant offers under the first round that focused on projects that can come online in the near term. The grants will help independent businesses produce more American-made fertilizer, which will spur competition, give U.S. farmers more choices and better prices, and reduce dependence on several unreliable foreign sources. “I know that increased costs for fertilizer and other inputs have put a strain on farmers and cut into the bottom line,” Vilsack says. “By expanding domestic fertilizer production, we can grow independent local businesses, bring production and jobs to rural communities, and support fairer prices for our farmers.” *********************************************************************************** Bioscience Groups Call For Action on Mexico’s Biotech Corn Ban The National Corn Growers Association and a broad coalition of national and state agriculture and bioscience organizations sent a letter to the White House on Mexico’s GMO corn ban. The groups thanked the Biden administration for beginning technical consultations with Mexico. “We support your request for a consultation with Mexico regarding its treatment of agricultural biotechnology and denying the use of certain crop protection tools to provide a framework and timeline to resolve this issue,” the 62 groups wrote. “We look forward to these consultations beginning promptly.” They also say Mexico’s GMO corn ban draws a non-science based distinction between corn for food and corn for feed and industrial uses and is inconsistent with USMCA obligations. The ag and biotechnology groups reiterated the importance of beginning the legal process to not only resolve the dispute with Mexico but also prevent other countries from following suit. “Send a strong signal on enforcement,” they added. *********************************************************************************** The March Oil Crops Outlook Lowers U.S. Soybean Ending Stocks The USDA’s March Oil Crops Outlook lowered U.S. seasonal ending soybean stocks for the 2022-2023 marketing year by 15 million bushels to a total of 210 million because of higher exports. Soybean exports are raised by 25 million bushels to 2.02 billion bushels, while crush volumes are reduced by 10 million bushels to 2.2 billion bushels. The 2022-2023 global soybean supply is reduced this month due to lower production in Argentina and Uruguay. Argentina’s soybean production is lowered by eight million metric tons to 33 million metric tons on a lower harvested area and yields hit hard by drought. World soybean consumption is down 5.3 million metric tons this month. Global ending stocks were lowered to 100 million metric tons. Through March 2, cumulative marketing year U.S. soybean export inspections surpassed 2021-2022 totals as inspections to China surged and increased for Mexico. February’s export inspections set a record thanks to Brazil’s slow harvest. *********************************************************************************** USDA Announces Cost-Share Assistance for Grain Storage Ag Secretary Tom Vilsack announced that producers in counties affected by eligible disaster events can apply for cost-share assistance through the Emergency Grain Storage Facility Assistance Program. Farmers in Kentucky, Minnesota, South Dakota, Illinois, Indiana, Iowa, Missouri, North Dakota, and Tennessee are eligible for the program. It provides cost-share assistance for constructing new grain storage capacity and drying and handling seeds in order to support the orderly marketing of commodities. “Weather events in 2021 and 2022 in several states caused catastrophic losses to grain storage facilities on family farms as well as large commercial grain elevators, leaving stored grain exposed to the elements and affecting storage and commodity marketing options for many producers,” Vilsack says. “This new program will provide cost-share assistance to help producers address their on-farm storage capacity needs that are necessary for marketing grain.” Eligible natural disasters occurred from December 1, 2021, to August 1, 2022. *********************************************************************************** NPPC Wants Beagle Brigade Act Passed Quickly The National Pork Producers Council applauded the reintroduction of the Beagle Brigade Act of 2023. This legislation would provide congressional authority to the USDA’s National Detector Dog Training Center, which is a vital program in training agricultural canine teams that work daily to prevent foreign animal and plant diseases from entering the U.S. “Safe and reliable food production is critical to the United States’ continued national and economic security,” says Terry Wolters, NPPC President. “As African Swine Fever continues to plague the Dominican Republic and Haiti, strengthening early detection capabilities at our U.S. borders is more important than ever.” The “Beagle Brigade” serves as the first line of defense for early detection at the nation’s ports of entry and is critical for keeping foreign animal diseases out of the country. NPPC led more than 50 agricultural and other organizations in supporting the Beagle Brigade Act’s reintroduction and urges Congress to pass it.
| Rural Advocate News | Monday March 13, 2023 |
Top 5 Things to Watch - Commodity Classic Coverage, Livestock Numbers, Cooler Temps This Week OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 12. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. New equipment coming: Progressive Farmer Senior Editor Dan Miller, who covers the machinery world for us, is expecting continued announcements from some of the major equipment companies. If we say more, then this screen will self-destruct. Watch for continued new-product announcements. 2. Latest livestock numbers: Wednesday we'll have the latest Call the Market column from DTN Livestock Analyst ShayLe Stewart. And Friday is the release of the latest Cattle on Feed report. Watch for Stewart's commentary on that. 3. More news from Orlando: The DTN Crops Team -- Crops Technology Editor Pamela Smith and Crops Editor Jason Jenkins -- will have more wrap-up news on the latest crop products and new ideas from the Commodity Classic last week. Watch for those pieces throughout the week; there was a lot happening in Mickeyville. 4. Cool weather running: With last week's ridge moving up and out to the Atlantic, DTN Ag Meteorologist John Baranick expects another cold front to sweep south. The void will also pull in Pacific air, moderating the expected drop in temperatures. Readers in the West, Northern Plains, and Canadian Prairies will see lower temperatures early in the week, with the moderation not hitting there until late in the week. Baranick reminds us that "below normal" temps do not carry the same bite as we hit mid-March as they did when these roller-coaster patterns kicked off in January. 5. A disaster remembered: Speaking of weather, we'll have a revisit of the infamous "bomb cyclone," which four years ago this week brought flooding, destruction and death to South Dakota, Nebraska, and parts of Iowa, Kansas and Missouri. Our Staff Reporter Russ Quinn, who farms north of Omaha, lived through it and then reported on it in real-time. See his feature full of remembrances and follow-ups.
| Rural Advocate News | Monday March 13, 2023 |
Monday Watch List Markets Back from the weekend with one hour of less sleep, traders will check the latest weather forecasts and pause at 8 a.m. CDT to see if USDA has an export sale to report. The only significant report of the day will be USDA's weekly report of grain export inspections, due out at 10 a.m. Weather High pressure will build across the middle of the country Monday, offering a break in precipitation. A ridge will continue to develop across the West Monday, which will allow for dry conditions to continue through Tuesday for much of the Central U.S.
| Rural Advocate News | Friday March 10, 2023 |
Pork Exports Start 2023 Quickly America’s pork exports finished strong in 2022 and kept going into January. January pork exports were 236,767 metric tons, up 13 percent year-over-year, and export value rose 16 percent to $634 million. Exports to Mexico set a record in 2022 and hit another record in January. Pork exports also were significantly higher in China/Hong Kong, Japan, Canada, and other locations. “While Mexico leads the way, it’s encouraging to see broad-based growth,” says U.S. Meat Export Federation President and CEO Dan Halstrom. “Market diversification is always a big point of emphasis.” Beef exports slowed late in 2022, and that carried into January, when exports fell 15 percent to 100,942 metric tons. The value dropped 32 percent to just over $702 million. While beef exports declined to several major destinations, shipments increased sharply to Mexico, the Dominican Republic, the Philippines, and Africa. “We expect post-COVID foodservice demand to rise this year,” Halstrom says. *********************************************************************************** Farm Bureau Signs MOU on Right to Repair The American Farm Bureau Federation and CNH Industrial brands Case IH and New Holland signed a memorandum of understanding, allowing farmers and ranchers to repair their equipment. The MOU follows a similar agreement Farm Bureau signed with John Deere earlier this year. “Farmers and ranchers are more dependent on technology than ever before,” says Farm Bureau President Zippy Duvall, “so it’s critical they have access to the tools to keep things running on the farm, so the food supply chain keeps running too.” The MOU sets a framework for farmers and independent repair facilities in all 50 states and Puerto Rico to access CNH Industrial brand manuals, tools, product guides, and information to self-diagnose and self-repair machines. The MOU respects intellectual property rights and recognizes the need for safety controls and emission systems don’t get altered. CNH and AFBF will meet semiannually to review the agreement to address any concerns. *********************************************************************************** Bipartisan Reps Reintroduce DAIRY PRIDE Act in the House Representatives from Wisconsin, Pennsylvania, Minnesota, Idaho, and Connecticut introduced the bipartisan DAIRY PRIDE Act. The legislation will prevent non-dairy products from using a dairy label and misaligning nutrient-scant products with the nutritious dairy products produced by American farmers. “Milk comes from a mammal, and it’s that simple,” says Wisconsin Rep Derrick Van Orden, one of the bill’s sponsors. “The nutritional value of whole milk for child development and as an integral part of a healthy diet can’t be overstated.” The Act will require products derived from seeds, plants, algae, and nuts to no longer get mislabeled with milk terms like milk, yogurt, and cheese. Plant-based products have completely different nutritional values, and the Reps say allowing these products to disguise themselves as otherwise is unacceptable to farming communities and the families they feed. The DAIRY PRIDE Act has broad support from a large number of agricultural organizations across the nation. *********************************************************************************** Cattle Inventories Drop in the U.S. and Canada The U.S. Department of Agriculture says all cattle and calves in the U.S. and Canada combined totaled 101 million head on January 1, 2023, down three percent from January 1 of last year. All cows and heifers that have calved inventory totaled 42.9 million head, three percent lower than last year. All cattle and calves in the U.S. as of January 1 totaled 89.3 million head, down three percent from 92.1 million last January 1. All U.S. cows and heifers that have calved were 38.3 million head, down three percent from last year. All cattle and calves in Canada were at 11.3 million head on January 1, down two percent from the 11.5 million head on January 1, 2022. All cows and heifers that have calved inventory was 4.53 million head, two percent lower than last year. All sheep and lambs in the U.S. and Canada totaled 5.87 million head on January 1. *********************************************************************************** NCBA Welcomes Black Vulture Relief Act The National Cattlemen’s Beef Association applauded the Black Vulture Relief Act, introduced by Representatives John Rose (R-TN) and Darren Soto (D-FL). “Cattle producers across the country are coping with extreme input costs and the worst inflation rate in 40 years,” says NCBA Government Affairs Director Sigrid Johannes. “Livestock deaths due to black vultures are a financial loss that no one can afford right now.” The bill would allow cattle producers to “take” (capture, kill, disperse, or transport) black vultures that pose a risk to livestock. The bill also reduces permitting burdens and red tape by instituting a simple report that producers submit once a year detailing the number of black vultures they took. Black Vulture depredation rates have recently increased in the Southeast U.S., surpassing 30 percent in some states like Florida. “The Florida Cattlemen’s Association appreciates this commonsense bill,” says Jim Handley, executive vice president of the association. *********************************************************************************** USSEC Seats New Board of Directors The U.S. Soybean Exports Council chose its 2023-2024 Board of Directors during the organization’s annual meeting prior to the Commodity Classic. The board is made up of 15 members representing various stakeholders from the U.S. soy industry. Four members are from the American Soybean Association, four are from the United Soybean Board, and seven represent trade, industry, and state organizations. “The unique composition of USSEC’s board provides us with exemplary leadership with representation from across the U.S. Soy industry,” says Jim Sutter, USSEC CEO. Stan Born, an ASA director and soybean farmer from Illinois, was elected as USSEC chair for a 12-month term. “I’m honored to have the trust and confidence of the USSEC board to serve as chair,” Born says. “As members of the soy value chain, we are fortunate to have such a strong global team representing our industry in markets around the world.” Lance Rezac was elected vice-chair.
| Rural Advocate News | Friday March 10, 2023 |
Friday Watch List Markets The U.S. Labor Department's will have nonfarm payrolls for February and the unemployment report out at 7:30 a.m. CST Friday morning, numbers of great interest to Fed-watchers. Traders will keep an eye on the latest weather forecasts and watch for any export sale announcement. The U.S. Treasury will report on the February federal budget at 1 p.m. Weather A storm system leaving the Plains will provide scattered snow showers to the Great Lakes and Ohio Valley Friday with areas of heavy rain across the Tennessee Valley and Southeast. Another storm system continues moving east across the West with more heavy precipitation for that region. This system will be the next storm system in the active pattern for the rest of the country over the weekend.
| Rural Advocate News | Thursday March 9, 2023 |
Milk-Pricing Proposal Moves Ahead The National Milk Producers Federation’s Board of Directors unanimously endorsed a proposal to modernize the Federal Milk Marketing Order system at its March meeting. The Federation says the move caps more than two years of discussion and more than 130 meetings on different aspects of the proposal. The plan to reinvigorate the FMMO system that guides milk pricing reflects an industry that’s evolved significantly since the last comprehensive revamp in 2000. “We’re moving forward on a comprehensive FMMO proposal the entire industry can get behind,” says Randy Mooney, chair of the NMPF’s Board of Directors. The proposal includes several changes to the FMMO System, including returning to the “higher-of” Class 1 mover. The federation also proposes discontinuing the use of barrel cheese in the protein component price formula. They also want a new process to ensure make-allowances are reviewed more frequently by requiring USDA to conduct plant-cost studies every two years. *********************************************************************************** March WASDE Lower Corn Export Demand The USDA World Agriculture Supply and Demand Estimates for 2022-2023 U.S. corn calls for lower exports and larger ending stocks. Exports are reduced by 75 million bushels to reflect the poor pace of sales and shipments this year despite relatively competitive U.S. prices. With no other changes from February, ending stocks rose by 75 million bushels. The season-average corn price dropped a dime to $6.60 a bushel. Soybean supply and use changes for 2022-2023 include higher exports, lower crush, and reduced ending stocks compared with February. Exports are up by 25 million to 2.02 billion bushels based on higher-than-expected shipments through February. As higher exports more than offset lower crush, ending stocks dropped 15 million bushels to 210 million, which would be the lowest in seven years. The season-average soybean price is unchanged at $14.30. The 2022-2023 U.S. wheat supply and demand outlook is unchanged from February. The season-average price is $9. *********************************************************************************** USDA Celebrates First National Biobased Products Day USDA celebrated the first National Biobased Products Day on Wednesday to highlight the accomplishments of people and organizations working to improve sustainability. “By setting aside March 8 as National Biobased Products Day, we honor the 20 years of progress the BioPreferred Program has achieved,” says USDA Rural Development Undersecretary Xochitl (so-CHEEL) Torres Small. Congress created the U.S. BioPreferred Program in the 2002 Farm Bill. The program is the federal government’s official advocate and market accelerator for biobased products. USDA congratulated the four winners of the BioPreferred Program’s “Excellence in Procurement Award” in 2022 for their respective agencies” environmental impact by using biobased products and championing farmers in rural America. Winners include the Department of Energy’s Y-12 National Security Complex in Tennessee, Christina Graves of the Forest Service, Brian McCabe of the National Park Service, and Brooke Siegel with the FBI. To learn more about the BioPreferred Program, go to biopreferred.gov. *********************************************************************************** Stockmanship and Stewardship Event Registration is Open Registration is now open for the six Stockmanship and Stewardship regional events that take place in five states this spring and summer, with an additional virtual event in November. During each event, producers can become Beef Quality Assurance certified, network with fellow cattlemen and women, participate in hands-on demonstrations led by animal handling experts, and learn cutting-edge operation techniques. A previous Stockmanship and Stewardship attendee shared, “While I have had experience in most of the topics covered, it was great to hear the speakers talk and give a good overview of industry practices. It was a great event and one that I encourage others to attend.” The event features low-stress handling demonstrations, BQA educational sessions, facility design sessions, and industry updates. The program is sponsored by the National Cattlemen’s Beef Association, Merck Animal Health, and the Beef Checkoff-funded National Beef Quality Assurance program. For more information or to register, go to StockmanshipAndStewardship.org. *********************************************************************************** Producers Respond to New H-2A Wage Rule The U.S. Department of Labor recently announced a final rule to amend H-2A temporary labor certification regulations to better protect agricultural workers. It’s also designed to update the H-2A application and temporary labor certification process. Not everyone in agriculture is happy with the rule. Western Growers Association President and CEO Dave Puglia (POO-glee-ah) says America’s farmers are already stretched to the limit by rising costs and shrinking margins. “With economic blinders on, the administration will now mandate that farmers pay higher wages to H-2A workers and domestic workers in corresponding employment,” he says. “Increasing wages by regulatory order will force farmers to cut back on U.S. plantings and increase their farm operations in Mexico and other countries where the wages are a fraction of the H-2A wage.” He also says while no one wants that to happen, these are entirely foreseeable consequences of “economically myopic” decisions like this. For more information, go to wga.com. *********************************************************************************** Midwest Attorneys General to Sue EPA Over Delayed E15 Rule The Attorneys General from Nebraska and Iowa have notified Environmental Protection Agency Administrator Michael Regan of their intent to file suit over year-round E15. The filing comes after the agency delayed rulemaking on year-round E15 sales in eight Midwestern states. The EPA took over 300 days to issue a proposed rule despite a Clean Air Act requirement to act within 90 days. Iowa attorney general Brenna Bird says EPA needs to follow the law and make E15 gasoline available year-round. “With record-high gas prices, consumers deserve relief when paying at the pump,” Bird says. “The EPA’s failure to respond on time not only deprives hard-working people of a cheaper, cleaner option, it’s also a violation of the Clean Air Act.” The EPA approved the rule for year-round E15 sales in those states but delayed implementation until 2024. The attorneys also called on the agency to issue an emergency waiver for 2023.
| Rural Advocate News | Thursday March 9, 2023 |
Thursday Watch List Markets USDA's weekly export sales will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage follows at 9:30 a.m. Traders will keep watch over the latest weather forecasts and any export sales announcement that might occur. Weather A storm system leaving the Rockies will increase precipitation across the Plains and Midwest on Thursday, spreading farther east overnight. Moderate to heavy snowfall amounts are expected out of this storm from Wyoming to Michigan. Another storm system is moving into the West with more heavy precipitation for that region, and the next storm system in the active pattern for the rest of the country over the weekend.
| Rural Advocate News | Wednesday March 8, 2023 |
Farmer Sentiment Drops in February The Purdue University/CME Group Ag Economy Barometer dropped five points to 125 in February. Farmers’ perspectives regarding both current conditions on their farms and their expectations for the future also weakened during the month. The Index of Current Conditions dipped two points to 134, and the Index of Future Expectations declined six points to 121. Several factors are weighing on producers’ minds, including the risk of falling commodity prices, rising interest rates, and uncertainty over the future growth of agricultural exports. The Farm Financial Performance Index dropped seven points to a reading of 86. Despite strong farm income, the February reading of the Farm Capital Investment Index didn’t change much, rising one point to a reading of 43. This month, 72 percent of producers said it’s a bad time to make large investments in their farming operation, while just 15 percent said it’s the right time to make those investments. *********************************************************************************** USDA’s Simplified Direction Loan Application Now Available A new, simplified direct loan application is now available for all producers seeking a direct farm loan from the Farm Service Agency. The new application went from 29 to 13 pages to provide an improved customer experience for producers applying for loans and enables them to complete a more streamlined application. Producers also have the option to complete an electronic fillable form or prepare a traditional paper application for submission to their local FSA farm loan office. Coupled with the Loan Assistance Tool released in October 2022, the simplified application will provide all loan applicants access to information regarding the application process and assist them with gathering the correct documents before they begin the process. This will help farmers and ranchers submit complete applications and reduce the number of incomplete, rejected, or withdrawn applications. Producers can explore all available options on all FSA loans at fsa.usda.gov or contact their local Service Center. *********************************************************************************** CropLife America Applauds USTR Actions CropLife America applauds the U.S. Trade Representative’s Office for requesting formal technical consultations with the Mexican government under the U.S.-Mexico-Canada agreement. The goal of the consultation is to address a long-standing agricultural technology trade issue. This announcement enforces Mexico’s trade commitments made in the USMCA and addresses concerns voiced by many in the U.S. ag community, including CLA, regarding the decree’s impact on biotechnology traits and pesticides in Mexico. The organization has maintained that Mexico’s regulatory actions regarding biotechnology ignore science- and risk-based regulations and the scientific weight of evidence from regulatory bodies around the world. CLA shares USTR’s concerns and is encouraged by the USTR’s focus on the need for a science-based regulatory approach. “We support the administration’s enforcement of a rules-based trading system for agricultural innovation and encourage USTR to also address regulatory delays and barriers that are impacting pesticide registrations in Mexico,” CLA said in a release. *********************************************************************************** Upper Missouri River Basin Runoff Forecast Below Average The updated 2023 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, continues to be below average. “Despite some improvements in overall basin conditions, we expect 2023 runoff to remain below average,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Basin Water Management Division. “Soil moisture has improved slightly in some areas, but drought conditions still exist across most of the basin.” The 2023 calendar year runoff forecast above Sioux City is 21.5 million acre-feet, 84 percent of the average. The runoff forecast is based on current soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. February runoff in the Missouri River Basin above Sioux City was one million acre-feet, 86 percent of a typical year. System storage is currently 46 million acre-feet, 10.1 million below the top of the carryover multiple-use zone. *********************************************************************************** Undersecretary to Lead Trade Mission to Panama USDA Undersecretary for Trade and Foreign Agricultural Affairs Alexis Taylor will lead a delegation of 26 agribusinesses and farm organizations to Panama City, Panama, March 19-23. The mission highlights opportunities in Panama and throughout the Central America and Dominican Republic Free Trade Agreement (CAFTA-DR) region. Exports of agricultural products to Panama and CAFTA-DR countries reached a record of $8.8 billion in 2022, up 57 percent from 2018. “I’m excited that my first USDA trade mission is targeting Panama and our CAFTA-DR partners,” Taylor says. “The region provides great potential to the U.S. agriculture sector as consumers across the area clamor for the world-class agricultural and food products grown here in America.” In Panama City, trade mission participants will engage directly with potential buyers, receive in-depth marketing briefings from the Foreign Agricultural Service and industry trade experts, and participate in site visits. “I look forward to connecting buyers and sellers,” Taylor says. *********************************************************************************** NAMI says USDA Label Proposal Will Raise Prices for Consumers The North American Meat Institute says the USDA’s Food Safety and Inspection Service’s latest attempt at proposed rules for a “Product of the USA” label for meat products will not succeed. The organization says labeling meat products will result in trade retaliation from Canada and Mexico, costing American consumers and businesses billions of dollars. “USDA should have considered more than public sentiment on an issue that impacts international trade,” says NAMI President and CEO Julie Anna Potts. “Our members make considerable investments to produce beef, pork, lamb, veal, and poultry products in American facilities and employ hundreds of thousands of U.S. workers.” That means NAMI products should labeled as a “Product of the USA.” At issue is a proposed rule from the Food Safety and Inspection Service that would limit “Product of the USA” claims to just products made from livestock born, raised, harvested, and processed in the continental U.S.
| Rural Advocate News | Wednesday March 8, 2023 |
Wednesday Watch List Markets On Wednesday, Federal Reserve Chairman Jerome Powell returns to Congress for a second day, typically repeating what he said Tuesday. The U.S. Commerce Department will have its report of the January U.S. trade deficit at 7:30 a.m. CST, followed by the Energy Department's weekly inventory report at 9:30 a.m. USDA's WASDE and Crop Production reports are at 11 a.m. and the Federal Reserve's Beige Book is at 1 p.m. Weather A wave of loosely organized showers was moving through the middle of the country from Minnesota to northeast Texas early Wednesday morning. Showers in this area will wane throughout the day, though thunderstorms are likely to develop over northern Texas later in the day. A system in the Rockies will start to exit into the Plains Wednesday night where showers will increase in dramatic fashion going into Thursday.
| Rural Advocate News | Tuesday March 7, 2023 |
USTR Requests Consultations With Mexico, Vilsack Responds The U.S. Trade Representative’s Office Monday requested technical consultations with the Government of Mexico under the U.S.–Mexico–Canada Agreement. The consultations, as part of the USMCA Sanitary and Phytosanitary Measures Chapter, are aimed at Mexico’s ban on genetically modified corn. Trade Representative Katherine Tai says, “Mexico’s policies threaten to disrupt billions of dollars in agricultural trade and they will stifle the innovation that is necessary to tackle the climate crisis and food security challenges if left unaddressed.” Agriculture Secretary Tom Vilsack responded, “These consultations represent the next step in addressing the United States’ concerns with Mexico’s biotechnology policies,” while adding, “We remain firm in our view that Mexico’s current biotechnology trajectory is not grounded in science, which is the foundation of USMCA.” The U.S. government’s intention is that through the consultation process, USTR can reach an outcome that respects each country’s sovereignty and benefits the United States, Mexico, and U.S. agricultural producers and stakeholders. *********************************************************************************** NCGA: USTR Request a Step Closer to USMCA Dispute Panel The request for technical consultation with Mexico by the U.S. Trade Representative’s Office puts the U.S. one step away from a full dispute settlement under the U.S.-Mexico-Canada Agreement. The National Corn Growers Association and affiliated state associations have been leading calls for the Biden administration to act, applauded the development and urged USTR to expedite the process. NCGA President Tom Haag says, "Mexico's position on biotech corn is already creating uncertainty, so we need U.S. officials to move swiftly and do everything it takes to eliminate this trade barrier." A technical consultation will bring leaders from both countries into formal discussions. If this step does not resolve the stalemate, the U.S. can then initiate a dispute settlement under USMCA. Once a dispute settlement is filed, a group of experts are empaneled to hear the case and make final determinations based on the commitments both parties signed as part of the free trade agreement. *********************************************************************************** USDA Proposes New Requirements for the “Product of USA” Label The Department of Agriculture Monday released a proposed rule with new regulatory requirements to the voluntary “Product of USA” label claim. The proposed rule allows the voluntary “Product of USA” or “Made in the USA” label claim to be used on meat, poultry and egg products only when they are derived from animals born, raised, slaughtered and processed in the United States. Agriculture Secretary Tom Vilsack says, “These proposed changes are intended to provide consumers with accurate information to make informed purchasing decisions.” Vilsack announced the proposal at the National Farmers Union annual convention in San Francisco. NFU President Rob Larew says, “This voluntary effort is a strong step and a strong base for permanent and mandatory country of origin label soon.” However, the National Cattlemen’s Beef Association responded, “Simply adding born, raised, and harvested requirements to an already broken label will fail to deliver additional value to cattle producers and it will undercut true voluntary, market-driven labels that benefit cattle producers.” *********************************************************************************** Vilsack Announces New Independent Processors Funding Agriculture Secretary Tom Vilsack Monday announced an $89 million investment to finance the startup and expansion of independent meat processors. USDA also announced the department's initial steps to create a more competitive marketplace for seeds and other agricultural inputs. Vilsack says the investment "will promote competition, support producer income, strengthen the supply chain, and increase economic opportunity in rural communities." USDA is providing $89 million in grants under the Meat and Poultry Intermediary Lending Program to increase available financing for independent processors, alleviate bottlenecks, and create opportunities for small businesses and entrepreneurs in rural communities. The investments are being made under the second round of the program. Nonprofit lenders in seven states will use the funding to establish revolving loan funds to finance the startup, expansion and operation of meat and poultry processors. USDA is making the investments in Alabama, Georgia, Maine, Nebraska, North Dakota, Oklahoma and South Dakota. *********************************************************************************** Farm Bureau Analysis: 2022 Crop Losses Top $21 Billion The American Farm Bureau Federation estimates 2022 crop losses due to weather and climate change at more than $21.4 billion. The AFBF Market Intel analysis shows in 2022, 18 weather and climate disasters, each with damages exceeding $1 billion struck the United States. The National Oceanic and Atmospheric Administration reported that 2022 surpassed 2021 as the third-costliest disaster year event in history, with an estimated $165 billion in total economic losses. In 2022, Texas suffered the most significant hit, with over $6.4 billion in incurred losses primarily made up of $2.9 billion in damages to cotton. More than half of the agricultural losses were effectively protected under existing risk management programs with the remainder highlighting the importance of inclusive protections for growers of all crops in all regions of the nation. AFBF crop loss estimates do not include infrastructure damage, livestock losses, horticulture crop losses or timber losses associated with the selected weather events. *********************************************************************************** Farm Bureau Helps Fight Hunger Through Harvest for All Program Farm families from across the nation donated 25.3 million pounds of food and raised more than $1 million to help fight hunger in 2022 through Farm Bureau's "Harvest for All" program. Combined, the monetary and food donations totaled the equivalent of 31.1 million meals. Criteria for tracking Harvest for All donations included dollars and pounds of food donated by state and county Farm Bureaus, as well as volunteer hours. In addition to raising food and funds, farmers and ranchers tallied 13,827 volunteer hours assisting local hunger groups in 2022. Florida Farm Bureau took top honors for donating the most food in 2022, 18.7 million pounds, and the most volunteer hours at 6,400. Michigan Farm Bureau took top honors for raising the most money in 2022, $372,716. Since Harvest for All was launched, Farm Bureau families have gathered 437 million pounds of food, logged more than 237,000 volunteer hours and raised more than $11 million in donations.
| Rural Advocate News | Tuesday March 7, 2023 |
Tuesday Watch List Markets On Tuesday, Federal Reserve Chairman Jerome Powell addresses Congress and will likely repeat the need for further rate hikes to bring inflation down to the Fed's 2% target level. Traders will check the latest weather forecasts and may pay attention for a possible export sale announcement at 8 a.m. CST, having faith restored by Monday's corn sale. Weather A broad ridge across the West is extending far enough into the Rockies to produce showers in the Plains on Tuesday. Thunderstorms across the Southern Plains could be a bit stronger along the Red River, though chances there are low. Moderate snows are expected across the Northern Plains.
| Rural Advocate News | Monday March 6, 2023 |
Food Prices Drop for 11th Straight Month Global food costs moved lower again for the 11th consecutive month. The Financial Post says while consumers are still spending more for food, prices are at their lowest level in the last 17 months. The UN Food and Agricultural Organization’s Food Price Index dropped 0.6 percent in February, the longest string of lower food prices in 30 years. The index averaged 129.8 points last month, dropping from 130.6 in January. Last month’s drop was driven primarily by cooking oils and dairy. The overall index is down 19 percent from a record set last year when Russia’s invasion of Ukraine disrupted grain exports around the world. The FAO says sugar prices rose last month, while meat and grains were almost identical to the previous month. The Vegetable Oil Price Index dropped almost five points to 135.9 in February, while the dairy index was down 3.6 points, or 2.7 percent, to 131.3. *********************************************************************************** Dairy Coalition Applauds Court Decision on “Gruyere” The National Milk Producers Federation, the U.S. Dairy Export Council, and other industry stakeholders prevailed in their battle to protect generic names in the U.S. The Fourth Circuit Court of Appeals upheld prior court decisions finding the term “gruyere” (groo-YAYR) is a generic term for a type of cheese. The decision should end attempts by Swiss and French groups to take away a common food name through a U.S. certification mark registration. The court said when people enter stores and ask for gruyere, they mean a type of cheese, not a cheese produced in the Gruyere regions of Switzerland and France. The Fourth Circuit found the evidence of that to be so one-sided that there is no genuine issue as to any material fact, and opposers must prevail as a matter of law. The decision reinforces that generic terms like “gruyere” refer to types of food, regardless of where it’s produced. *********************************************************************************** Ag Safety Awareness Week: “Lead the Way in Agriculture” The Agricultural Safety Awareness Week Program is this week, March 6-10. U.S. Agricultural Safety and Health Centers will join Farm Bureaus across the country to promote ag safety this week with the theme of “Lead the Way in Agriculture.” Each day has a different focus, beginning on Monday with Mental Health. Preventative Health Care, Safety Culture, Situational Awareness, and Temperature-Related Safety will be the focus Tuesday-Friday, respectively. “Keeping everyone safe on America’s farms and ranches is so important,” says American Farm Bureau President Zippy Duvall. “We encourage farmers and ranchers to take the time to make safety a priority during this week and throughout the year.” The Agricultural Safety and Awareness Program is part of the Farm Bureau Health and Safety Network of professionals who share an interest in decreasing safety and health risks. Visit the Center’s YouTube channel for new content and fresh ideas about how to stay safe year-round. *********************************************************************************** Vilsack to Keynote Commodity Classic Ag Secretary Tom Vilsack will be the keynote speaker during the General Session at the 2023 Commodity Classic this Tuesday through Saturday in Orlando, Florida. The General Session is this Friday, March 10. The General Session will also include the leaders of the five associations that present the Commodity Classic, including the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers, and the Association of Equipment Manufacturers. Education is a big focus at Commodity Classic. The event offers Learning Centers, What’s New, and other educational sessions, along with additional opportunities for education and events at the Commodity Classic Main Stage. The Classic also features a large three-day trade show, entertainment, and the opportunity to network with thousands of America’s farmers and agriculture industry professionals. Established in 1996, Commodity Classic is the largest farmer-owned, farmer-run trade show event. For more information or to register, go to commodityclassic.com. *********************************************************************************** 2022 was the Third-Costliest Disaster Year in History 2022 will go into the books as the third-costliest year for weather disasters in U.S. history. The estimated total economic losses reached $165 billion. New analysis by American Farm Bureau economists shows extreme weather caused more than $21 billion in crop losses. The impact on American farms and ranches demonstrates the importance of farm bill programs to help rural communities recover from weather-related disasters. The AFBF Market Intel Report says more than $11 billion in losses were covered by existing Risk Management Agency programs as of February 2022. Over $10 billion in losses were not insured through RMA, existed outside of policy coverage levels, or didn’t qualify under an existing risk management program. “It’s not hard to see why programs like crop insurance and disaster coverage are vital to the livelihoods of farmers and ranchers and the overall stability of our country, as a whole,” says AFB President Zippy Duvall. *********************************************************************************** Soybean Export Sales Hit Marketing-Year Low The USDA says export sales of corn and wheat both dropped while soybean sales declined to a marketing-year low during the week ending on February 24. Corn sales to overseas buyers totaled 598,000 metric tons, down 27 percent from the previous week and 48 percent from the prior four-week average. Mexico was the top corn buyer at 207,400 metric tons. Exports for the week dropped three percent to 666,400 tons. Wheat sales were 16 percent lower than the prior week at 284,000 metric tons, 39 percent higher than the same week last year. Japan was the top buyer at almost 71,000 tons. Exports were up 81 percent to 610,000 metric tons. Soybean sales dropped 14 percent week-to-week and 25 percent from the four-week average to 360,700 tons, the lowest since the marketing year began last September. China purchased 218,400 metric tons. Weekly soybean exports dropped 45 percent to 881,000 metric tons.
| Rural Advocate News | Monday March 6, 2023 |
Top 5 Things to Watch - Commodity Classic Hits Orlando, March WASDE is Out OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of March 5. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. WASDE -- The March Madness of crop predictions -- begins: Wednesday brings the latest World Supply and Demand Estimates (WASDE) report from USDA. We'll have initial numbers in our Flash story just after 11 a.m. CST, followed by updates and analysis through the following half hour. Our analysts are especially watching for bearish higher U.S. ending corn stocks estimates, driven by lower exports and South American production estimates. As always, DTN Lead Analyst Todd Hultman will have an online discussion of the report at 12:30 p.m. CST. 2. No Mickey Mouse reports: Four major commodity groups gather in Orlando, Florida this week for the Commodity Classic, and we'll be there. Watch for fresh reporting on policy issues, award winners and new crop chemicals and machinery. If you're in town, please visit us at the DTN booth to see the latest in our information and decision-making products. Stop by at 11:30 a.m. EST on Thursday we'll hold a panel discussion with leaders from CHS and DTN. Saturday morning (8:30 a.m. EST) DTN Ag Meteorologist John Baranick will present the latest spring and summer forecasts. Hope to see you. 3. No rest for wicked weather: Speaking of Baranick, his favorite word lately is "active." System after system keeps coming ashore on the West Coast and pushing through the central U.S., creating rain, snow and high winds in the process. Each wave pulls down colder air, though "cold" becomes a relative term the deeper we get into March. Expect those active systems to continue through this week and into the next. We've gone from looking at empty riverbanks to now watching for flooding in a number of areas. Stay tuned by checking the Ag Weather Forum blog. 4. Fertilizers and fertility: DTN Staff Reporter Russ Quinn continues his weekly update of fertilizer prices this week. DTN subscribers can view all our fertilizer information in our Markets sections. Quinn will also recap diesel and fertilizer price conversations from our recent Ag Summit Series session held Feb. 28. Watch for those stories throughout the week. 5. Other key reports coming: In addition to WASDE, this week has a number of key reports coming out that traders will watch closely. Monday is USDA's weekly grain export inspections; Tuesday sees the U.S. wholesale trade report from January; Wednesday we'll get the latest DOE energy inventory numbers and January U.S. trade deficit report; Thursday sees USDA weekly export sales and the U.S. jobless claims numbers and markets and we finish the week taking in the latest U.S. nonfarm payrolls and unemployment reports.
| Rural Advocate News | Monday March 6, 2023 |
Monday Watch List Markets Back from the weekend, traders will keep up with the latest weather forecasts, but may overlook export sales announcements as there haven't been any since February 17. An outdated report on U.S. factory orders will be out at 9 a.m. CST, followed by USDA's weekly grain export inspections at 10 a.m. Weather A system moved into the Northern Plains on Sunday and produced areas of moderate to heavy snow, which continues on Monday across northern areas. Other areas will be quieter with a significant differenc
| Rural Advocate News | Friday March 3, 2023 |
USDA Announces First Permanent Chief Diversity and Inclusion Officer The Department of Agriculture Thursday announced L’Tonya Davis as its first Chief Diversity and Inclusion Officer. Davis will lead USDA in its ongoing efforts to improve diversity, equity, inclusion, and accessibility and will oversee the implementation of USDA's first-ever DEIA Strategic Plan. Agriculture Secretary Tom Vilsack says, “Davis has demonstrated a strong commitment to hiring and developing a workforce that reflects the rich and diverse tapestry of America.” Davis will work closely with executive leaders, employees, and staff experts to advance and sustain committed leadership and employee engagement for a high-performing and innovative USDA workforce. Davis joins USDA after serving in the Food and Drug Administration’s Office of Regulatory Affairs. Establishing the first-ever Chief Diversity and Inclusion Officer role has been a top priority for Secretary Vilsack and Deputy Secretary Jewel Bronaugh, who is stepping down from the department. Bronaugh was the first Black woman and woman of color to serve as Deputy Secretary at USDA. *********************************************************************************** Iowa to Request Emergency E15 Waiver for 2023 States seeking year-round E-15 may request an emergency waiver for the 2023 summer driving season. The Environment Protection Agency announced a proposal this week to allow year-round E-15 in states that requested the waiver. However, the proposal delays implementation of the rule until 2024. POET Energy spokesperson Joshua Shields says the proposal left unresolved concerns about access to the renewable fuel blend in 2023. Shields adds, “The lack of near-term certainty underscores the urgent need to ensure E15 sales are not interrupted.” Iowa Governor Kim Reynolds responded, “While long overdue, I am thrilled that the EPA has approved our multi-state bipartisan RVP waiver request that will pave the way for year-round E15 and bring certainty to the industry.” However, regarding the delay, Reynolds, says, “I look forward to requesting another emergency waiver for this year while at the same time asking the courts to require the Administration to grant our request immediately.” *********************************************************************************** USDA: Mexico a top Market for US Exports New data from USDA’s Economic Research Service shows that between fiscal years 2018 and 2022, Mexico accounted for nearly 14 percent of all U.S. agricultural exports. With a total value of $28 billion, Mexico is projected to be the United States’ second largest destination for U.S. agricultural exports in fiscal year 2022, and is forecast to reach 15 percent in 2023. On average, Mexico purchased $6.5 billion in U.S. grains and feeds per year from 2018 to 2022, accounting for 18 percent of the largest export commodity group. Demand for grains and feed has been spurred by the expansion of Mexico’s cattle industry and growing consumption of animal products. However, the report does not consider the future impacts of Mexico's decree banning imports of genetically engineered corn. Meanwhile, between 2018 and 2022, Mexico’s imports of livestock, poultry, and dairy products represented an average of 18 percent of total U.S. exports and accounted for $6.3 billion in sales. *********************************************************************************** AEM Issues Position Paper on Future Emission Regulations The Association of Equipment Manufacturers Thursday announced policy recommendations for future rulemakings impacting emissions or future engine technologies. The organization released a position paper entitled "Clean Air and Low Emissions through Next-Gen Nonroad Equipment.” The paper also details the position of AEM and its members that future regulations should support a reasonable transition to cleaner equipment. AEM Vice President of Construction & Utility John Somers says, “The association and its members want to leverage our considerable experience and expertise to inform regulatory efforts happening both now and in the future.” Engine emissions regulations are among the most important and impactful requirements placed on the nonroad equipment sector, affecting everything from performance, research and development, design, safety and cost. The most recent Tier 4 update drove significant equipment changes, including modernized electronic engines and aftertreatment for many power categories. The Position paper and its recommendations are available on the organization’s website, aem.org. *********************************************************************************** Restaurant Industry Expects Growth to Continue in 2023 The National Restaurant Association's 2023 State of the Restaurant Industry report released this week suggests more growth, labor challenges and rising costs for operators. The report predicts the food service industry will reach $997 billion in sales in 2023, driven in part by higher menu prices. Meanwhile, the food service industry workforce is projected to grow by 500,000 jobs, for total industry employment of 15.5 million by the end of 2023. National Restaurant Association CEO Michelle Korsmo says, "Our hiring rate and wage increases are outpacing the overall private sector, and this year our industry will contribute nearly $1 trillion to the economy." For 70 percent of operators, business conditions have settled into or are on the path to their new version of normal. The report finds 92 percent of operators say the cost of food is a significant issue for their restaurant, and 47 percent of operators expect competition to be more intense than last year. *********************************************************************************** Rural Media Group Launches the Cowgirl Channel The Cowgirl Channel made history as the new television network centered around women in western sports officially launched nationwide on DISH Network 269 and Sling TV. Viewers can now watch The Cowgirl Channel 24 hours a day, seven days a week in high definition as part of DISH Network's "America's Top 120 Package" and on SLING's "Heartland Extra Package." The Cowgirl Channel is the latest television network operated by parent company Rural Media Group, which also owns The Cowboy Channel and RFD-TV. Five years ago, Rural Media Group launched The Cowboy Channel in response to the demand and growth of western sports. Today, The Cowboy Channel is the official network of ProRodeo, home of the National Finals Rodeo, and broadcasts over 600 rodeo performances on the network's linear feed and streaming app. And now, Rural Media Group has expanded its coverage of western sports even further with the launch of The Cowgirl Channel.
| Rural Advocate News | Friday March 3, 2023 |
Friday Watch List Markets There are no significant reports on Friday's docket. USDA has not had a daily export sale announced since February 17 and, after Thursday's dismal export sales report, traders may stop checking in at 8 a.m. to see if anything shows up. The latest weather forecasts, however, do remain a topic of interest. Weather A storm system is moving out of the Plains through the Midwest on Friday and into the Northeast Friday night. The system is producing widespread moderate to heavy rain and snow that will mix in from Missouri to Michigan and across the Northeast with time. Strong to severe thunderstorms will press east through the Tennessee Valley and Southeast and through the Mid-Atlantic as well. Winds are increasing around the eastern half of the country and in some areas significantly so, with gusts over 50 mph in the Tennessee Valley.
| Rural Advocate News | Thursday March 2, 2023 |
Lawmakers Introduce Checkoff Reform Legislation Republican Senator Mike Lee of Utah leads a bipartisan effort to reform agricultural checkoff programs. Lee was joined by Democrats Cory Booker, Kristen Gillibrand and Elizabeth Warren, and Republican Rand Paul, in reintroducing the Opportunities for Fairness in Farming Act. Checkoffs are mandatory Department of Agriculture fees assessed on a per-unit basis that fund boards designed to promote the commodity as a whole. However, Lee says, "Checkoff programs are filled with waste and often abuse those who are forced to contribute to their coffers." Among other things, the bill would prohibit checkoff programs from contracting with any organization that lobbies on agricultural policy. The legislation met mixed reviews from agriculture groups. R-CALF USA CEO Bill Bullard says, “The decades old beef checkoff program is ill-suited to meet the needs of today’s cattle farmers and ranchers.” However, the National Cattlemen’s Beef Association responded to the legislation, “In 2021 cattle producers overwhelmingly denied a referendum to end the Checkoff.” *********************************************************************************** EPA Proposes Removal of Gasoline Volatility Waiver for Select States The Environmental Protection Agency Wednesday announced a proposed rule paving the way for year-round E-15 as a group of state governors requested. The proposal would allow states to remove the 1-psi volatility waiver for gasoline-ethanol blends containing ten percent ethanol in their states. EPA proposes removing the 1-psi waiver in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin. EPA proposes an effective date for all states of April 28, 2024. Biofuel groups, however, criticized the implementation date of the proposal. Growth Energy CEO Emily Skor responded, “First and foremost, we need E15 in 2023 so consumers can save money every time they fuel up at the pump.” The National Corn Growers Association supports the governors’ plan and expressed serious concern over the one-year delay in implementation and the market uncertainty the delay creates for E15 in 2023. NCGA President Tom Haag says, “These governors did the right thing, but EPA’s proposal delays this solution.” *********************************************************************************** NCBA Calls Again for Immediate Halt to Brazilian Beef Imports The National Cattlemen’s Beef Association is calling on Secretary of Agriculture Tom Vilsack to immediately half U.S. beef imports from Brazil. The announcement comes as Brazil reported another atypical case of bovine spongiform encephalopathy to the World Animal Organization for Animal Health last week. That report indicated 35 days elapsed between when the case was first identified and the date it was confirmed. NCBA president Todd Wilkinson says, “We have seen Brazil repeatedly fail to meet the 24-hour requirement for reporting of animal diseases.” Wilkinson adds, “We expect USDA to keep the border closed to Brazil until they can demonstrate that they are willing and able to play by the trade rules that govern all other nations.” NCBA sent a letter to USDA, demanding immediate action on this issue. NCBA also supports bipartisan Senate legislation to suspend Brazilian beef imports pending a review of Brazil's standards. *********************************************************************************** Chicken leads U.S. Per Person Availability of Meat The supply of chicken available to eat in the United States continues to outpace beef, according to new food availability data from the USDA’s Economic Research Service. In 2021, 68.1 pounds of chicken per person were available for human consumption, on a boneless, edible basis, compared with 56.2 pounds of beef. The availability of chicken began to increase in the 1940s, overtaking pork availability in 1996 and surpassing beef in 2010 to become the meat most available for U.S. consumption. Since 1980, U.S. chicken availability per person has more than doubled from 32.7 pounds. There were 47.5 pounds of pork available in 2021, after fluctuating between 42.4 and 49.9 pounds per person over the last four decades, according to USDA. Per-person fish and shellfish availability data are available only through 2019, when 19.1 pounds were available per person in the United States, up from the low of eight pounds in 1943. *********************************************************************************** World Pork Expo Set for Milestone 35th Anniversary Celebration The 2023 World Pork Expo returns to the Iowa State Fairgrounds in Des Moines, Iowa, from June 7 through 9. This year marks the 35th anniversary of the annual event focusing on education, innovation and networking within the pork industry. National Pork Producers Council Board President Terry Wolters says, "We're looking forward to celebrating the event's history while continuing to look ahead at the progress the industry continues to make." The event has grown significantly over the last three and a half decades to become the world's largest pork-specific trade show. Last year, more than 10,000 pork producers and ag professionals representing over 400 companies worldwide participated. This year's event is expected to draw even more industry insiders to the more than 300,000 square feet of exhibit space. Registration information will soon be available on worldpork.org for those who plan to attend the 2023 World Pork Expo, June 7-9. *********************************************************************************** Boehringer Ingelheim Animal Health Appoints Scott King to Lead U.S. Cattle Business Boehringer Ingelheim Animal Health Wednesday announced the appointment of Dr. Scott King as the new Executive Director of the U.S. Cattle Business. King says of the appointment, "I am excited to lead the team at Boehringer Ingelheim as we work hand-in-hand with them to prevent and manage conditions that can impact cattle health." King has served as Director of Marketing for the U.S. Cattle Business at Boehringer Ingelheim since 2015. He joined Boehringer Ingelheim in 2014 as Director of Marketing for the U.S. Equine Business and has held various marketing and technical leadership roles at Bayer Animal Health and Land O'Lakes Purina Mills. King is a graduate of the University of Missouri College of Veterinary Medicine and practiced veterinary medicine for ten years. Steve Boren, Vice President of Livestock and Equine at Boehringer Ingelheim, adds, "His extensive knowledge of the cattle industry and background in veterinary medicine will be integral to helping uphold Boehringer Ingelheim’s commitment to whole herd health.”
| Rural Advocate News | Thursday March 2, 2023 |
Thursday Watch List Markets USDA's export sales report will be out at 7:30 a.m. CST, the same time as weekly U.S. jobless claims and updates of fourth quarter productivity and the U.S. Drought Monitor. Discussions begin Thursday at the G20 meeting in India, but don't expect an agreement on Ukraine with Russia, China and India in the room. The U.S. Energy Department's weekly report on natural gas storage is set for 9:30 a.m. after last week's report showed supplies up 22% from a year ago. Weather A storm system is moving out of the southern Rockies and into the Southern Plains on Thursday. Precipitation increased ahead of this system across the Tennessee Valley and Mid-Atlantic Wednesday and will increase from Texas and Oklahoma into these areas again today. Along with the increase in precipitation, a significant severe weather event is expected for later Thursday afternoon and Thursday evening. Strong tornadoes and damaging wind gusts will be likely from northeast Texas to Mississippi and western Tennessee going through the overnight hours.
| Rural Advocate News | Wednesday March 1, 2023 |
USDA Receives Equity Commission Interim Recommendations USDA's Equity Commission presented its 2023 Interim Report to Agriculture Secretary Tom Vilsack Tuesday. The 37-page report and its findings are based on the personal experiences and expertise of its members, their collaborative and in-depth review of USDA's programs and practices, and stakeholder input. Examples of the recommendations include offering new sources of capital to owners of heirs' property and fractionated land, as well as steps to prevent the creation of these types of property to reduce barriers to USDA programs in the future. Arturo S. Rodriguez, co-chair of the Equity Commission and United Farm Workers President Emeritus, says, "The Equity Commission's recommendations address issues that are not new to USDA, but they do require a renewed commitment to improve access to programs and services for all stakeholders Agriculture Secretary Tom Vilsack says, "We're confident the work of the Equity Commission will bolster our efforts to realize lasting change at USDA and are grateful to the members for taking on this work." *********************************************************************************** Study: Ethanol Cuts Gas Price by 77 Cents per Gallon Adding low-cost ethanol to the nation's gasoline supply improves energy security and saves the average American household more than $750 annually. That's according to a new study by energy economists from the University of California-Berkeley. The analysis concluded that "adding ethanol to gasoline decreases the price paid by U.S. drivers at the pump." The researchers estimate the average discount per gallon to be $0.77 between 2019 and 2022, reaching a total savings of $95.1 billion annually for U.S. consumers. The authors of the study attribute much of this benefit to the Renewable Fuel Standard. Renewable Fuels Association President and CEO Geoff Cooper said the study's results come at a critical time for U.S. policymakers. Cooper says, "American consumers would be paying much higher prices at the pump if not for the inclusion of more than 14 billion gallons of low-cost, low-carbon ethanol in our nation's gasoline supply each year," RFA commissioned the new study. *********************************************************************************** Bipartisan DAIRY PRIDE Act Reintroduced Senate lawmakers this week reintroduced the DAIRY PRIDE Act of 2023. The bill is titled The Defending Against Imitations and Replacements of Yogurt, milk, and cheese to Promote Regular Intake of Dairy Everyday Act of 2023. The legislation would require non-dairy products made from nuts, seeds, plants, and algae to no longer be mislabeled with dairy terms such as milk, yogurt or cheese. The reintroduction follows last week's Food and Drug Administration proposal allowing nut, oat, soy, and other non-dairy products to use the name "milk." Senate Democrat Tammy Baldwin of Wisconsin says, "The Biden Administration's guidance that allows non-dairy products to use dairy names is just wrong." Current FDA regulations define dairy products as being from dairy animals. However, last week the FDA released draft guidance allowing plant-based products to continue to use dairy terms despite not containing dairy, nor having the nutritional value of dairy products. *********************************************************************************** USDA Encourages Farmers to Prepare for new Rice Production Program The Department of Agriculture Tuesday previewed plans to provide up to $250 million in assistance to rice farmers. The plans include what steps rice producers can take to be prepared to sign up when the program is released later this spring. The full program and application details will not be available until later this year. But farmers can get prepared to signup, if they qualify for a higher payment limitation. The payment limitation for the program is set by law and is higher if the farmer's average adjusted gross farm income is more than 75 percent of their average adjusted gross income. Rice farmers may visit their local county office to submit the appropriate form and if they qualify for and want to seek the higher payment limit and get part of the paperwork done early. More information will be provided when FSA announces the signup period in the coming weeks. *********************************************************************************** Pandemic Food Away From Home Spending Varied Data from USDA’s Economic Research Service shows food away from home spending varied during the first year of the COVID-19 pandemic. In April 2020, spending at full-service restaurants declined 71 percent compared with April 2019. Spending at fast-food restaurants fell 32 percent, and spending at all other food-away-from-home establishments dropped 41 percent over the same period. Full-service restaurants typically offer food and alcohol to seated customers, which was hard to provide during the pandemic. However, the limited physical interaction with customers made it easier for fast-food establishments to adapt to COVID-19 restrictions, and by the second half of 2020, they managed to recover to pre-pandemic spending levels. Despite efforts by many full-service restaurants to expand takeout and delivery services, these outlets took slightly longer to bounce back, and returned to pre-pandemic spending in March 2021. By December 2021, both full-service and limited-service restaurant spending had fully recovered and were each about 10 percent higher than in December 2019. *********************************************************************************** Farm Bureau Accepting Ag Innovation Challenge Applications The American Farm Bureau Federation, in partnership with Farm Credit, is seeking entrepreneurs to apply online for the 2024 Farm Bureau Ag Innovation Challenge. Now in its 10th year, the national business competition showcases U.S. startup companies developing innovative solutions to challenges faced by America's farmers, ranchers and rural communities. Farm Bureau is offering $165,000 in startup funds throughout the course of the competition, which will culminate in the top 10 semi-finalists competing in a live pitch competition in front of Farm Bureau members, investors and industry representatives at the AFBF Convention in January 2024 in Salt Lake City, Utah. AFBF President Zippy Duvall says, "We're pleased to recognize startup companies that provide solutions to problems facing rural America and support farmers." Applications remain open through May 12, and the ten semi-finalist teams will be announced September 12. Each semi-finalist team will compete to advance to the final round of four teams. Find more information at fb.org/challenge.
| Rural Advocate News | Wednesday March 1, 2023 |
Wednesday Watch List Markets Various manufacturing indices from around the world will be reported overnight, leading to ISM's index of U.S. manufacturing at 9 a.m. CST Wednesday, clues to world economic activity. The U.S. Energy Department's weekly inventory report will be out at 9:30 a.m., including ethanol production. Traders will keep an eye on the latest weather forecasts and South American crop conditions. Weather A system moving from the Northern Plains into the northern Midwest carries areas of mostly snow on Wednesday. The cold front to this system lies across the southeastern Plains through the Tennessee Valley and will light up with showers later Wednesday and into Wednesday night, some of which may be severe, but also carrying potentially heavy rainfall. Another strong system is moving through the southwest with heavy precipitation that will become another big-impact system for the end of the week east of the Rockies
| Rural Advocate News | Tuesday February 28, 2023 |
NACD Releases 2023 Farm Bill Recommendations The National Association of Conservation Districts released policy recommendations for the upcoming 2023 Farm Bill. The NACD’s Farm Bill Task Force has convened more than a dozen times to come up with recommendations that were recently approved by the NACD Board of Directors. Their most important priority is for Congress to keep conservation investments provided by the Inflation Reduction Act in the farm bill conservation programs. This request is critical to addressing the high unmet demand for NRCS conservation programs, which only serve about one in every three eligible producers. To support locally-led conservation efforts, the recommendations also push back against one-size-fits-all policies, the addition of national carve-outs within programs, and limitations on conservation practices. “We will continue to work with a wide range of stakeholders and lawmakers on both sides of the aisle to develop an inclusive farm bill that provides strong support for conservation,” says NACD President Kim LaFleur. *********************************************************************************** FCC Commissioner Speaks Out on the Importance of AM Radio in EVs Nathan Simington, a Commissioner for the Federal Communications Commission, spoke out on the continued importance of AM radio to public safety. He says the issue of continuing to include AM radios in electric vehicles deserves urgent attention. “As electric vehicle adoption increases, we must not leave behind those in rural areas who depend on radio for their news and alerts,” Simington says. He points out that growing up in rural Saskatchewan was like living in a connectivity desert. “Back then, like now, radio was essential for staying connected,” he says. “While some things have changed, not enough has changed to eliminate the need for radio, and the situation is similar in the United States.” He also believes the FCC has a duty to make clear how valuable AM radio is to its listeners. “Further, we should be good stewards of the AM radio band,” he says. “That includes safeguarding AM radio reception.” *********************************************************************************** Veterinarians Help Reignite Push to Strengthen Dog Import Standards The American Veterinary Association-supported Healthy Dog Importation Act would help to prevent the introduction and spread of diseases impacting both animal and human health. The legislation has been reintroduced in both chambers of Congress and would improve importation standards to make sure dogs are in good health when brought into the U.S. “Strengthening our animal health infrastructure by improving the country’s dog import standards is essential to maintaining public health,” says Dr. Lori Teller, AVMA President. “There are over a million dogs imported into the country each year, and we must make sure they’re healthy and not a risk for spreading dangerous diseases.” Senator Tina Smith (D-MN), one of the bill’s sponsors in the Senate, says, “Mitigating the spread of foreign diseases in dogs helps keep domestic and wild animals safe. It will also prevent illnesses and disease outbreaks in people.” Smith also says she’ll continue pushing this bipartisan bill forward. *********************************************************************************** USDA Report Says Farmers Adopting Precision Ag at Different Rates Farmers are adopting precision technologies at different rates. A USDA report says the largest farms are adopting auto-steer guidance technology at significantly higher rates. After sorting farms into five equally-sized groups, the agency found that among farmers who were growing corn in 2016, 73 percent of farms in the largest category adopted guidance at the highest rates. The rates were similar for the largest farms growing other commodities in later years: 82 percent of the largest winter wheat farms in 2017, 68 percent of the largest soybean farms in 2018, and 67 percent of the largest cotton farms in 2019. Adoption rates were smaller among the smallest farms in the country: 10 percent of the smallest corn farms in 2016, 11 percent of the smallest soybean farms in 2018, and seven percent of the smallest winter wheat farms in 2017. However, fifty percent of the smallest cotton farms have adopted the technology. *********************************************************************************** USDA Looking to Expand Conservation Assistance The USDA is seeking applications for projects that will improve its outreach to underserved producers and underserved communities. The agency is looking to expand opportunities to participate in conservation programs and services and opportunities for students to pursue careers in agriculture, natural resources, and related sciences. USDA’s Natural Resources Conservation Service is offering up to $70 million in cooperative agreements with entities for two-year projects that encourage participation in NRCS programs, especially in underserved communities and among urban and small-scale producers. “USDA is committed to removing barriers for underserved producers to all USDA services,” says NRCS Chief Terry Cosby. “The projects funded through this opportunity will better ensure these producers receive the benefits our conservation programs deliver.” The projects should promote the benefits of the NRCS programs through education or demonstrations, develop community conservation partnerships that engage underserved producers, and meet other requirements too. For more information, go to grants.gov. *********************************************************************************** Corn Export Sales Drop Week-to-Week The USDA says corn export sales for the week ending on February 16 dropped while wheat and bean sales rose. Corn sales that week hit 823,200 metric tons, 20 percent lower than the previous week and 30 percent under the previous four-week average. Japan was the biggest buyer at 312,000 metric tons, followed by Mexico and Taiwan. The total would have been higher, but China and Italy both canceled shipments. Exports for the week rose three percent to 687,400 tons. Wheat sales came in at 338,800 metric tons, 62 percent higher than the previous week and 39 percent above the four-week average. Exports hit 338,000 metric tons, a 32 percent drop. Soybean sales rose 20 percent over the prior week at almost 545,000 metric tons, 18 percent below the four-week average. China was the top buyer at 176,200 metric tons. Exports for the week dropped six percent to 1.74 million metric tons.
| Rural Advocate News | Tuesday February 28, 2023 |
Tuesday Watch List Markets DTN's Ag Summit Series begins at 8:30 a.m. CST Tuesday, followed by the Conference Board's index of U.S. consumer confidence at 9 a.m. Traders will keep watch over the latest weather forecasts and pause at 8 a.m. to see if USDA has an export sale to announce, something not seen for the past 10 days. Weather A storm system continues to move through the Northeast with precipitation but the next in the series of storms for the week will exit the Rockies and move through the Northern Plains and Upper Midwest Tuesday and Tuesday night with scattered snow showers. A band of snow should set up along the North Dakota-South Dakota border which may be heavier. Breezy winds continue in West Texas, which continue to rob the region of any topsoil moisture.
| Rural Advocate News | Monday February 27, 2023 |
U.S. Imposes Higher Tariffs on Russian Imports The White House announced actions intended to hold Russia accountable for invading Ukraine. U.S. Trade Representative Katherine Tai says as part of that effort, President Biden announced additional tariff increases on a variety of goods from Russia worth approximately $2.8 billion. The president raised tariffs on most metal and metal products, doubling them from 35 to 70 percent and targeting a crucial revenue-generating sector of the Russian economy. He also increased tariffs on additional Russian products to 35 percent, including chemicals and minerals. These moves are complemented by tariff increases on Russian aluminum. “These actions are carefully calibrated to put economic pressure on Russia while minimizing costs to U.S. consumers,” says Tai. “As the president recently said in Poland, the United States and our Allies and partners will hold accountable those who are responsible for the war.” She also says those actions demonstrate the U.S. resolve in doing precisely that. *********************************************************************************** Food-at-Home Price to Increase Almost Nine Percent USDA’s Economic Research Service publishes its price forecasts in the monthly Food Price Outlook report. The FPO forecasts food-at-home prices will increase by 8.6 percent in 2023, with a prediction interval of 5.6 to 11 percent. Forecasts now include a midpoint and a prediction interval to represent the expected price change and range of likely prices. The prediction intervals vary. They begin wider due to uncertainty at the start of the year and then narrow as forecasts incorporate more months of observed data. In 2023, fresh fruit prices are predicted to experience little change at 0.1 percent with a prediction interval of -5.6 to 6.4 percent. Overall, food prices are expected to grow more slowly in 2023 than they did in 2022 but remain above historical average rates. Food-at-home prices grew 11.4 percent in 2022, the largest annual increase since 1974, compared with a historical average increase of 2.5 percent from 2003-2022. *********************************************************************************** Egg Prices are Projected to Drop 30 Percent This Year The price of eggs is projected to fall dramatically after reaching record-high levels over several months. The USDA says those prices should fall back to typical levels this year, provided the U.S. doesn’t see a rebound in highly pathogenic avian influenza cases in 2023. The Bureau of Labor Statistics says the price of eggs in January was $4.80 a dozen, 150 percent higher than in January of last year. USDA Chief Economist Seth Meyer told the Ag Outlook Forum attendees that wholesale egg prices will drop almost 27 percent in 2023. The agency says the high price of eggs is driven by the historic level of avian flu outbreaks that have killed more than 58 million backyard and commercial chickens and turkeys since last February. The agency says egg production will increase four percent this year to 9.4 billion dozen as the number of egg-laying chickens will also rebound from 2022. *********************************************************************************** Report Says Farm Bill Should Prioritize Ag Research A report produced by the Farm Journal Foundation and the Chicago Council on Global Affairs says the U.S. needs to increase support for agricultural research and development in the next farm bill. The support would help make sure that farmers can keep feeding the world despite the challenges faced by agriculture. New innovations generated from agricultural research at land-grant universities and other public sector institutions can help increase farm productivity and economic growth. Despite that, public investment in agricultural R and D has declined in recent years. The report says the 2023 farm bill is an opportunity to increase funding for agricultural R and D and ensure the U.S. is prepared for the challenges ahead. The USDA’s Economic Research Service says ag research provides one of the highest returns of any public research investment, generating $20 on average for every $1 spent. Public investment is needed to complement private-sector spending. *********************************************************************************** Ethanol Production Surges The Energy Information Administration says ethanol output jumped to the highest level in more than two months while inventories again increased during the week ending on February 17. The EIA report says production rose to an average of 1.029 million barrels a day. That’s up from 1.014 million barrels, on average, during the previous week and is the highest output since December 16. The Midwest saw output increase to an average of 984,000 barrels a day, up from 965,000 barrels during the previous week. That was where all the gains took place. Production in the West Coast and East Coast regions was unchanged from the prior week. Production in the Rocky Mountain and Gulf Coast regions fell an average of 9,000 and 21,000 barrels a day, respectively. Ethanol stockpiles were up again, rising to 25.58 million barrels, up from 25.33 million during the prior week, and the highest level since April 1, 2022. *********************************************************************************** Give FFA Day Raises Record Amount of Support The National FFA Organization was amazed at the amount of support shown during the National Give FFA Day event. They were excited to announce that with the generous support of the FFA community, they helped raise a record-breaking amount of money. A total of 721,506 dollars will go toward benefitting National FFA and 51 FFA associations. “To those who donated on Give FFA Day, we are so grateful for your support,” the organization said in a release. “Your generosity will impact FFA members and teachers across the country.” They also say because the support was so generous, FFA is able to build members’ leadership skills, instill a passion for service, and prepare the next generation for agriculture careers. “Thank you to everyone who stepped up to make the day such a rousing success,” the organization said. For those who didn’t get the chance, go to ffa.org to continue supporting the organization.
| Rural Advocate News | Monday February 27, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and any news. A report on U.S. durable goods orders for January is due out at 7:30 a.m. CST, followed by pending home sales at 9 a.m. and USDA's weekly grain inspections at 10 a.m. Weather A storm system going through the Midwest on Monday morning already produced a round of significant severe weather across the Central and Southern Plains on Sunday, with another round possible from Illinois to Ohio on Monday. In addition, colder temperatures across the northern Midwest and Northeast will create a mix of wintry weather Monday into Monday night, and breezy winds have developed for the middle of the country. Several additional storm systems are expected this week with myriad impacts.
| Rural Advocate News | Friday February 24, 2023 |
USDA Releases Lower Ag Export Forecast for 2023 American agricultural exports in fiscal year 2023 are projected at $184.5 billion, down $5.5 billion from the November forecast. The export forecasts for all major commodity groups are down, with the largest drops projected for corn, sorghum, and soybeans. Corn exports are forecast $1.9 billion lower to $16.6 billion on lower volume. Soybean exports are projected to drop by $800 million to $32 billion on lower U.S. supplies and increased Brazilian competition. Livestock, poultry, and dairy exports are forecast to decrease by $900 million to $40.5 billion as declines in beef, poultry, and dairy exports offset increases in pork exports. U.S. cotton exports are forecast down $100 million to $5.9 billion on lower volumes. Ethanol exports are forecast at $3.6 billion, down $600 million on lower volumes and a reduced demand outlook. China is forecast to remain the largest market for U.S. agricultural exports at $34 billion, unchanged from November. *********************************************************************************** Study Shows Transition to Cage-Free Eggs Comes With Problems A new study funded in part by United Egg Producers and the United Egg Association shows the transition to cage-free eggs will increase costs and reduce profits. It also shows that producers may not be able to make the 2026 deadline. The study says, “Conversion from conventional to cage-free housing is costly for both egg producers and final consumers.” There remains a lot of uncertainty about the extent to which egg producers will be willing and able to continue transitioning to cage-free housing at a rate commensurate with retailers’ cage-free pledges. Roughly 55 percent of consumers surveyed for the study are motivated by price and don’t discriminate between cage and cage-free eggs. Producers surveyed also reveal higher costs and labor requirements associated with cage-free production. Producers are also experiencing challenges in getting financing to convert or build cage-free facilities without longer-term commitments from retailers, particularly as interest rates continue climbing higher. *********************************************************************************** Cyberattack Temporarily Shuts Down Dole Production Food giant Dole says it recently was hit by a cyberattack that was determined to be ransomware. Industrial Cyber says the attack disrupted the company’s operations and resulted in the temporary shutdown of production plants. It temporarily halted the company’s food shipments to stores. A company news release says upon learning of the incident, Dole moved quickly to contain the threat and engaged leading third-party cybersecurity experts who’ve been working with Dole’s internal teams to secure the company’s systems. An internal memo on February 10 told employees that “Dole Food Company is in the midst of a cyber-attack and has subsequently shut down our systems throughout North America.” Two grocery stores in Texas and Mexico contacted by CNN said they hadn’t been able to stock Dole salad kits on their shelves for days. Dole didn’t go into detail about the ransomware hackers’ attack methods but did say the company contacted law enforcement. *********************************************************************************** Mad Cow Disease Found in Brazil Brazil’s agriculture and livestock ministry says beef exports to China are temporarily on hold after a case of mad cow disease was confirmed in one of the northern states called Para. Reuters says the suspension is part of an animal health agreement made between the two countries and likely won’t last long. However, it is a hit to the bottom line for the country’s farmers as China is the top destination for Brazil’s beef exports. Minister Carlos Favaro says, “All measures are being taken immediately at each stage of the investigation, and the matter is being handled with total transparency to guarantee Brazilian and global consumers the recognized quality of our meat.” The ag ministry also says, “The symptomology indicates that it is the atypical form of the disease, which appears spontaneously in nature, causing no risk of dissemination to the herd and human beings.” Para’s agricultural defense agency confirmed the disease case. *********************************************************************************** 2022 Annual Milk Production up 0.1 Percent From 2021 The annual production of milk in the United States during 2022 was 226 billion pounds, 0.1 percent above 2021. Revisions to 2021 production increased the annual total to 35 million pounds. Revised 2022 production was down 158 million pounds from the previous USDA publication. Annual total milk production has increased 12.5 percent since 2013. The average number of milk cows on farms in the United States during 2022 was 9.4 million head, 0.5 percent lower than last year. The average number of milk cows was revised down 2,000 head for 2022. The average annual number of milk cows has increased by 1.9 percent from 2013. In the meantime, milk production in the 24 major dairy-producing states totaled 18.5 billion pounds in January, 1.5 percent higher than in January 2022. Production per cow averaged 2,069 pounds for January, 18 pounds above January 2022. The number of milk cows on farms was 8.93 million head. *********************************************************************************** Biggest U.S. Farms Obtaining More Land USDA’s annual Farms and Land in Farms Report shows the country’s largest farms with sales of $1 million or more operate nearly 26 percent of U.S. farmlands. The agency also says there were 2.003 million farms in the nation during 2022, a drop of 0.5 percentage points from 2012. Around 88,660 farms, or 3.9 percent of the total, had sales of at least $1 million. Ten years ago, three percent of farms made that category. The average size of the largest farms, by sales, was 2,927 acres or 4.6 square miles in 2022. In 2012, farms with $1 million in sales were an average of 2,481 acres in size. USDA says the average farm size for 2022 was 446 acres, up from 445 acres in 2021. The size of farms in the $1 million or more sales class increased. Farms in every other sales class either decreased or remained the same size.
| Rural Advocate News | Friday February 24, 2023 |
Friday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CST, the same time the Personal Consumption Expenditure index for January and U.S. personal income and consumer spending data will also be out, followed by U.S. new home sales for January and the University of Michigan's consumer sentiment index for February at 9 a.m. USDA's monthly cattle on-feed and cold storage reports are due out at 2 p.m. Weather There may be some showers floating around the Plains, Midwest, and Delta on Friday, but most areas will stay dry. Very cold air that has settled into the Northern Plains and Canadian Prairies continues Friday before moderating. The next storm system is moving through California with heavy precipitation and strong winds. This system will move through the Southwest over the next couple of days.
| Rural Advocate News | Thursday February 23, 2023 |
FACA Announces 2023 Farm Bill Priorities The Food and Agriculture Climate Alliance Wednesday released policy recommendations for the 2023 farm bill. Further reducing emissions throughout agricultural and forestry supply chains will require a comprehensive effort involving financial and technical assistance, research investments, proactive response to innovation, public-private partnerships and a commitment to equitable opportunities for all producers. FACA's recommendations, developed by the 23-member steering committee, are divided into six categories: Conservation, risk management and credit, energy, food waste, forestry, livestock and dairy, and research, extension and innovation. FACA's past recommendations have provided guidance to members of Congress and administration officials and have been credited with shaping federal laws and programs. President of the American Farm Bureau Federation, Zippy Duvall, says, "We look forward to working with Congress to strengthen Title I programs, improve risk management tools, and utilize these FACA recommendations to advance our sustainability mission in a manner that respects farmers and ranchers as partners." *********************************************************************************** FDA Announces Draft Guidance for Plant-Based Dairy Imitators The Food and Drug Administration Wednesday announced draft recommendations on the naming of plant-based foods that are marketed and sold as alternatives to milk. The guidance recommends that an alternative milk product that includes the term milk and has a nutrient composition different than milk, include a voluntary nutrient statement that conveys how the product compares with milk. Jim Mulhern, President and CEO of the National Milk Producers Federation, says the announcement "is a step toward labeling integrity for consumers of dairy products." Though Mulhern says the guidance "falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology." Senate Democrat Tammy Baldwin and Idaho Republican Jim Risch, in a joint statement, say, "This misguided rule will hurt America's dairy farmers and our rural communities." Baldwin and Risch announced their intention to reintroduce the DAIRY PRIDE Act, which would require the FDA to issue guidance for nationwide enforcement of mislabeled plant-based products within 90 of implementation. *********************************************************************************** NCGA Announces Caskey as CEO The National Corn Growers Association Wednesday announced Neil Caskey as its new CEO. Caskey, who serves as NCGA's vice president of communications, will begin the role of CEO Monday, February 27. NCGA President Tom Haag says, "Neil's experience in agriculture is extensive, and he is well known as someone who gets the job done well." Caskey has served as NCGA's vice president of communications and industry relations for over four years and spent over a decade promoting agricultural issues as executive vice president at OBP Agency. His professional background also includes work for the American Soybean Association and as a legislative aide for a U.S. member of Congress. Caskey says, "It is quite an honor to lead an organization that I care so much about." Caskey holds a B.A. in political science from the University of Missouri-Columbia and an MBA from Webster University. Former CEO, Jon Doggett, left NCGA at the end of last year. *********************************************************************************** Consumers Expect to Pay More for Groceries A new survey finds consumers expect to pay more for groceries this year. Progressive Grocer reports the 2023 KPMG Winter Consumer Pulse Survey shows consumers anticipate increased prices, but are looking for ways to save money. The Survey shows consumers expect a 15 percent increase in grocery spending this year. Meanwhile, 56 percent of consumers plan to spend more on groceries this year, while nine percent plan to spend less. Consumers cite inflation, an increased tendency to eat at home, larger household sizes and dietary changes as reasons for spending changes. KMPG research also finds 38 percent of consumers plan to pay more for restaurant meals this year, a two percent increase from last year. However, 35 percent of consumers say they plan to spend less on purchases made online this year, yet nearly half of the respondents reported an average increase in household income of 15 percent. *********************************************************************************** USDA Announces $59 Million Investment in Meat Processing Capacity The Department of Agriculture this week announced a $59 million investment to increase independent meat and poultry processing capacity. The funding also seeks to expand market opportunities for farmers and create jobs in rural areas. The investment is part of the Biden administration's Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain. The action plan dedicates resources to expand independent processing capacity. Agriculture Secretary Tom Vilsack says, "USDA will continue to work tirelessly to give farmers and ranchers a fair chance to compete in the marketplace, which in turn helps lower food costs for the American people." USDA is providing the $59 million in grants to five independent processors under the Meat and Poultry Processing Expansion Program. The funding will help build new processing plants, create hundreds of jobs, give local producers and entrepreneurs more options and business opportunities, and give consumers more options at the grocery store. *********************************************************************************** AFA Acquires Magnetic Ag Digital Newsletter Agriculture Future of America has acquired Magnetic Ag - an agriculture-focused digital newsletter distributed through email twice weekly - from Magnetic Ag founder and AFA alumnus, Travis Martin. Since its inception in 2020, Magnetic has grown to serve more than 12,000 active subscribers including agricultural business, technology and policy professionals, alongside agriculture educators, students and farmers. Magnetic is aimed at making agriculture industry news digestible by consolidating news from a variety of industry media into each newsletter edition, making the newsletter a hub for the latest agriculture news. With a casual and catchy writing style, Magnetic shares agricultural business, policy, technology and market news. AFA President and CEO Mark Stewart says, "Adding Magnetic to AFA's offerings helps us further serve the industry by developing transformational leaders who find themselves at various stages of their careers." AFA aims to double readership in the coming year by making the newsletter more accessible to its partners and students.
| Rural Advocate News | Thursday February 23, 2023 |
USDA Forecasts Bigger Crops, Lower Prices for 2023-24 Crops ARLINGTON, Va. (DTN) -- U.S. farmers are forecast to plant 91 million acres of corn, up 2.4 million acres from last year, and produce a 15-billion-bushel crop while soybean acres will hold pat at 87.5 million acres and produce 4.5 billion bushels, according to USDA's initial Outlook on the 2023-24 crops. USDA also forecasts lower corn and soybean prices as production increases as well. USDA released its Grain and Oilseeds Outlook at the opening of its annual Outlook Forum on Thursday in Arlington, Va. CORN USDA forecasts higher corn production for the 2023-24 crop year with 91 million acres planted and a record yield of 181.5 bushels per acre, producing a projected 15.09-billion-bushel crop, about 10% larger than a year ago. If realized, it would be the second-largest crop on record behind the 2016-17 crop year. The higher production is expected to bring down the average farmgate price $1.10 a bushel from last year to $5.60 a bushel. Citing the 181.5 bpa, USDA said the record yield forecast is based on a "weather-adjusted trend assuming normal planting progress and summer growing season weather." Total corn supplies are forecast at 16.38 billion bushels, up about 8% from the 2022-23 crop. Looking at use, feed, seed and industrial use is unchanged at 6.69 billion bushels. Corn use for ethanol is projected at 5.25 billion bushels, "based on expectations of flat motor gasoline consumption." Feed and residual use is projected to rise 6% to 5.6 billion bushels due to higher corn production and expected lower prices during the year. Exports are expected to rise 275 million bushels to 2.2 billion bushels due to "reduced exportable supplies in Ukraine," and modest global trade growth. Ending stocks are forecast to rise 620 million bushels to 1.887 billion bushels, resulting in a stocks-to-use ratio of 13%. SOYBEANS While planted acreage would remain unchanged at 87.5 million acres, USDA forecasts yields will rise 2.5 bushels per acre to 52 bpa. That would boost production 5% to 4.5 billion bushels, "assuming normal growing-season weather." The average farmgate price for soybeans is projected at $12.90 a bushel, down $1.40 a bushel from the 2022-23 crop. Domestic soybean crush is projected to rise to a record 2.31 billion bushels, "supported by meal demand growth and high prices for biofuel feedstocks in the United States." Soybean oil for biofuels is expected to grow 8% to 12.5 billion pounds in 2023-24. USDA cited the driving increase for soybean oil in biofuels that has pushed up U.S. prices and driven down exports. "This trend is expected to continue under current state mandates and the Environmental Protection Agency's proposed rule for 2023 through 2025," citing the EPA Renewable Fuels Standard rules. Soybean exports for 2023-24 are forecast at 2.03 billion bushels, up 35 million bushels from the 2022-23 crop year. With harvest underway in Brazil, USDA cites that South American supplies will be higher this year as the U.S. export season gets underway. "With another large South American harvest expected in early 2024, export competition will likely limit potential gains in U.S. exports in the second half of the marketing year." Soybean ending stocks for 2023-24 are projected at 290 million bushels, up 65 million bushels from the 2023-24 forecast. WHEAT U.S. wheat production is projected to increase 14% for 2023-24 to 1.887 billion bushels on both higher acreage and yield. Total wheat planted acre is projected at 49.5 million acres, up nearly 3.8 million acres from the 2022-23 crop, and the highest since 2016-17. The average farmgate price for wheat is forecast at $8.50 a bushel, down 50 cents a bushel from the 2022-23 crop. The all-wheat yield is projected to increase 6% to 49.2 bpa. Total wheat supply will hit 2.575 billion bushels, up 107 million bushels from last year's crop. Total domestic use is forecast at 1.142 billion bushels, up 17 million bushels. Exports are forecast at 825 million bushels, up 75 million bushels from 2022-23. That puts total use at 1.967 billion bushels, up 67 million bushels from a year ago. All-wheat ending stocks will come in at 608 million bushels, up 40 million bushels from a year ago.
| Rural Advocate News | Thursday February 23, 2023 |
Thursday Watch List Markets U.S. weekly jobless claims, an update of fourth-quarter U.S. GDP and an update of the U.S. Drought Monitor are all set for 7:30 a.m. CST Thursday. The U.S. Energy Department's natural gas storage report will be out at 9:30 a.m., followed by energy inventories at 10 a.m. Traders continue to keep a close watch on the latest weather forecasts. Weather A long-duration winter storm is winding down Thursday, though moderate snow will still occur across portions of the northern Midwest into the Northeast. Winds remain blustery in some areas where the snow fell, causing some blowing and drifting of the snow along with occasional blizzard conditions. Very cold temperatures have settled in briefly across portions of the Plains and Upper Midwest through Friday before moderating.
| Rural Advocate News | Wednesday February 22, 2023 |
USDA: Ethanol Production Rebounds from Pandemic Lows Production and consumption of ethanol as a transportation fuel grew significantly over the last three decades in the United States before plateauing in recent years. The ethanol share of finished motor gasoline has moved concurrently with consumption, leveling off near ten percent in 2022. Steps taken in the spring of 2020 to combat the spread of COVID-19, such as increased remote work and school, and other social distancing efforts, resulted in sharp declines in a variety of ethanol market metrics. For example, from 2017–19, U.S. ethanol production averaged 1.33 billion gallons per month, while consumption averaged 1.18 billion gallons per month. During the pandemic lows, these values fell by 46 percent and nearly 40 percent, respectively, causing the ethanol share of finished motor gasoline to decline to nine percent. More recently, estimates for all three figures have largely recovered and leveled off. However, adoption of hybrid and electric vehicles is expected to put downward pressure on gasoline consumption and dampen prospects for renewed growth in fuel ethanol demand. *********************************************************************************** USDA Invests More than $48.6 Million to Combat Climate Change The Department of Agriculture will invest more than $48.6 million this year through the Joint Chiefs’ Landscape Restoration Partnership. The projects mitigate wildfire risk, improve water quality, restore forest ecosystems, and ultimately contribute to USDA’s efforts to combat climate change. This year, the Forest Service and Natural Resources Conservation Service will invest in projects. Forest Service Chief Randy Moore says, “The need for cross-boundary wildfire risk reduction work as part of our Wildfire Crisis Strategy is more urgent than ever.” The partnership enables the Forest Service and NRCS to collaborate with agricultural producers and forest landowners to invest in conservation and restoration at a large enough scale to make a difference. Working in partnership, and at this scale, helps reduce wildfire threats to communities and critical infrastructure, protect water quality and supply, and improve wildlife habitat for at-risk species. USDA is investing $31.2 million in 25 existing projects and more than $17 million in 14 new projects. *********************************************************************************** Ocean Freight Rates Revert to Pandemic Lows Since the highs of 2021, freight prices have dropped to lows not seen since June 2020, according to a recent analysis by U.S. Wheat Associates. Coupled with a recent break in wheat prices, decreased ocean freight costs have helped turn the tides back in the importers' favor. The Baltic Index price chart of dry bulk freight rates shows the impact on rates from the Russian invasion of Ukraine. On February 6, the Baltic Dry Index hit 621, a level not seen since June 2020. The index has fallen 88 percent from its peak in October 2021. In recent years, dry bulk freight and Chinese economic growth have become interconnected. Vessel supply and demand, port congestion, oil prices, and the ongoing supply chain disruptions will continue to impact the market as economies normalize post-COVID. However, China remains in the driver's seat of global freight, according to U.S. Wheat Associates. The resilience of the Chinese economy will be put to the test as economic activity increases post-COVID. *********************************************************************************** Growth in Organic Market Slowing The organic market has seen continued growth in retail sales in the past decade. However, the pace of growth has slowed, according to USD’s Economic Research Service. U.S. organic retail sales increased by an average of eight percent per year and surpassed $53 billion in 2020. In 2021, sales were $52 billion, which was a six percent annual decline when adjusted for inflation, but a slight increase when not inflation-adjusted. Additionally, the number of certified organic acres operated increased gradually from 3.6 million in 2011 to 4.9 million acres in 2021. The number of certified farms with operating organic acres in the United States nearly doubled over the past decade to 17,400 from about 8,900. Between 2019 and 2021, the number of certified organic farms in the United States increased five percent, while total organic land decreased by 11 percent, driven by a 36 percent decrease in pasture and rangeland. *********************************************************************************** FMI Encourages FDA to Refine Healthy Definition The Food Industry Association recently submitted comments to the Food and Drug Administration regarding the agency's proposed rule to update the definition of the term "healthy." The FDA is seeking the update when the term is used as a nutrient content claim in labeling. FMI Chief Public Policy Officer Jennifer Hatcher says. "We are concerned the proposal is too restrictive in scope and could inadvertently lead to consumers avoiding certain foods that are otherwise part of a healthy eating pattern." The comments submitted to FDA explain some FMI members found that their portfolios have gone from 80-95 percent “healthy”-eligible foods, to between three and seven percent healthy eligible foods under the proposed rule. FMI predicts that when taking into account the entire food supply, fewer than five percent of products would qualify. Hatcher adds, “A definition that only allows an exceedingly small number of foods to bear a healthy claim would be counter-productive to the agency’s goal of improving public health.” *********************************************************************************** Swine Health Center Develops Standard Outbreak Investigation Instrument The Swine Health Information Center this week announced a standardized outbreak investigation instrument. The new instrument is available for download and use from the SHIC website, and a web-based version will be launched this spring. The downloadable version is a fillable form that, upon completion, could be submitted to a program administrator at Iowa State University, the developer of the tool. Or the form could be used for farm/system outbreak investigations without submitting, but every submission will strengthen the confidential database that can help researchers find industry trends. The new, standardized outbreak investigation instrument was built from an existing investigation tool. Expert input and conversation led to changing some terms and creating additions. Dr. Derald Holtkamp of Iowa State University led the development of the instrument. Holtkamp says, “The reason for doing this remains trying to be better prepared to respond to the introduction of transboundary disease.” Visit swinehealth.org to learn more.
| Rural Advocate News | Wednesday February 22, 2023 |
Wednesday Watch List Markets Minutes from the Fed's most recent Open Market Committee meeting will be released at 1 p.m. Wednesday, the only significant report on the docket. Due to this week's four-day schedule, the Energy Department's weekly inventory report is pushed to Thursday. Traders will keep close watch over the latest weather forecasts and any outside news, especially as the one-year anniversary of Russia's invasion of Ukraine approaches. Weather A long-duration winter storm event continues to produce widespread impacts for much of the country on Wednesday. Showers and thunderstorms are developing across the southeastern Plains through the Midwest, some of which may be severe. A narrow band of heavier snow continues in Wisconsin and Michigan this morning but will broaden out during the day, with a risk of freezing rain from Iowa to southern Michigan. The larger part of the storm is in the Rockies and will increase the snowfall across the Northern Plains into the Upper Midwest throughout today and tonight, leading to heavy snowfall amounts. Winds with the system are increasing and will be strong enough to produce blizzard conditions where the heavy snow falls.
| Rural Advocate News | Tuesday February 21, 2023 |
Key Happenings the Newsroom is Tracking for the Week of Feb. 19-25 OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Feb. 19. Watch for coverage of these and other topics through the week on our subscription platforms as well as on DTNPF.com. 1. USDA Outlook Conference: The annual USDA Ag Outlook Forum is Feb. 23-24. The event is packed with sessions covering major issues in the ag economy, capped by USDA's official economic prognostications early Friday morning. 2. Early week winter waves: Several storm systems will trek across the U.S. this week. DTN Ag Meteorologist John Baranick says the next round begins in the Pacific Northwest Monday night into Tuesday. It is expected to head into the Great Lakes through Tuesday and into Wednesday, bringing snow to the Northern Plains and Great Lakes areas. 3. Dark anniversary: Feb. 24 is, of course, the first anniversary of Russians invasion into Ukraine; the ongoing war continues to influence the global economy, particularly global food security. Look for both reflections on that anniversary mark, as well as the potential real-time market influences from additional fighting in Ukraine. 4. Latest cattle numbers: USDA will release its latest Cattle on Feed report Friday, and the market will watch closely for continued signs of tight supplies. Watch for our preview analysis on Feb. 23. 5. Presidential thoughts: Trading markets are closed today, Feb. 20, as is the DTN newsroom, to mark the President's Day holiday. This year, as we remember the birthday of George Washington as well as Abraham Lincoln and others, many thoughts are with our 39th president, James Earl Carter Jr. The former peanut farmer from Plains, Georgia, who at 98 is the longest-lived U.S. president, entered into hospice care Feb. 18.
| Rural Advocate News | Tuesday February 21, 2023 |
Mexican Ban on Some Biotech Corn Underway Last week, Mexican officials issued a decree calling for a ban on imports of some biotech corn used for certain purposes. That ban began last Friday. The Mexican government also decreed it would continue to allow imports of biotech corn used as animal feed while exploring substitutes. The National Corn Growers Association expressed serious concerns with the accelerated timeline, noting that the administration has been more than patient with Mexico. “Our U.S. officials are seeking to enforce a rules-based trading system and stand up for farmers,” says NCGA President Tom Haag (HAYG). “The integrity of the USMCA, signed by Mexican President Obrador himself, is at stake.” He also says singling out corn, the number one U.S. ag export to Mexico, and hastening an import ban on numerous food-grade uses makes USMCA a dead letter unless it’s enforced. NCGA says Mexico appears to be doubling down on its original intended ban in 2024. *********************************************************************************** EPA Proposes New Rule for Pesticide Exposure Protection The Environmental Protection Agency announced a proposed rule that would improve and modernize the pesticide Application Exclusion Zone requirements. Those requirements are part of the 2015 Agricultural Worker Protection Standard, and the agency is proposing to reinstate several provisions from that standard. Among the changes, the revised standard includes a new provision requiring agricultural employers to keep workers and all others out of an area called the Application Exclusion Zone. The AEZ is an area surrounding an ongoing pesticide application. A previous rule change limited the AEZ to 25 feet in 2020. However, the proposed rule will change that to 100 feet for fine sprays. The distances will stay at 25 feet for medium or larger sprays when sprayed from a height greater than 12 inches from the soil surface. The rule change would also apply the AEZ beyond an establishment’s boundaries, and when individuals are within easements on a producer’s land. *********************************************************************************** EPA Changes Some Dicamba Cutoff Dates for This Spring The Environmental Protection Agency proposed new restrictions on using over-the-top dicamba herbicides in Illinois, Iowa, Indiana, and South Dakota. The label changes say no spraying on dicamba-tolerant soybeans in Iowa, Illinois, and Indiana after June 12 or the V4 growth stage, whichever comes first. No spraying on DT cotton in Iowa, Illinois, or Indiana after June 12 or first square, whichever happens first. No spraying on DT crops after June 20 in South Dakota. The EPA also said Minnesota’s label requirements remain the same as in 2022. The reaction to the change has not been positive in the soybean industry. Aaron Hager, a University of Illinois weed scientist, told DTN the timing couldn’t have been worse for soybean growers who intend to plant certain varieties. “Most or all seed decisions have been made, and now we have to contend with new cutoffs in the largest soybean states in the U.S.,” he says. *********************************************************************************** State Attorneys General File Lawsuit Over WOTUS Montana Attorney General Austin Knudsen (kuh-NOOD-sen) and attorneys general from 23 other states filed a lawsuit against the Biden administration’s Waters of the U.S. Rule. The group says the EPA’s WOTUS rule “goes beyond the power Congress delegated in the Clean Water Act, raises serious constitutional concerns, and runs roughshod over the Administrative Procedures Act.” Knudsen says, “The administration’s water rule limits the use of land and violates the law and U.S. Constitution. The EPA greatly overstepped its authority by trying to claim jurisdiction over land and water not connected to any navigable water.” The attorneys general say they’re fighting to protect farm and ranching operations, mining and energy workers, and infrastructure and housing projects across Montana and the entire country that will be harmed if this overreaching and unconstitutional rule takes effect. Montana and the other states will motion for a preliminary injunction to stop the rule while it’s under litigation. *********************************************************************************** The Fertilizer Institute Releases Sustainability Report The Fertilizer Institute released new data highlighting industry improvements in sustainability performance in key priority areas, including workforce safety, energy, the environment, and innovation. “The industry is continuously working towards more sustainable operations, including efforts to decarbonize and mitigate environmental impacts,” says TFI President and CEO Corey Rosenbusch. Report highlights include survey participants investing an average of more than $1 billion every year in capital investments to help the industry meet sustainability goals. In 2021, the industry captured 31 percent of all CO2 generated per ton of nutrient produced, an increase of 368 percent over emissions captured in 2013. To reduce the industry’s energy footprint, 39 percent of all energy consumed is generated using waste heat rather than pulling from the electrical grid. Nitrogen producers recycled enough water to fill 1.6 million Olympic-sized swimming pools. “Each step of the supply chain is focused on doing more with fewer resources,” Rosenbusch adds. *********************************************************************************** Growth in Farmland Values Continues Growth in farm real estate values remained strong but showed some signs of easing alongside higher interest rates. The Kansas City Federal Reserve says the average interest rates on farm loans increased from record lows at the beginning of last year to decade highs by December of 2022. Despite the rapid rise in rates, the value of farmland continued to increase, but at a more tempered pace than earlier in the year. The growth in farmland values has softened most for lower-priced land and in states most heavily affected by drought. Looking ahead, a majority of bankers expect higher interest rates to have a negative effect on farm real estate, and some anticipate a decline in values. Farm finances and credit conditions were supported by strong commodity prices in 2022, and the outlook for 2023 remained positive despite some persistent risks. Higher expenses and adverse weather continue to be concerning.
| Rural Advocate News | Tuesday February 21, 2023 |
Tuesday Watch List Markets Back from the three-day weekend, traders will be checking the latest weather forecasts and news. A report on U.S. existing home sales in January is due out at 9 a.m. CST, followed by USDA's weekly grain export inspections at 10 a.m. Weather A conglomeration of upper-level disturbances are combining to make for a long-duration winter storm across the country this week. The lead piece will create some moderate to heavy snow for the Northern Plains and Upper Midwest Tuesday while a piece in the Southwest moves into the Plains overnight with increasing showers and thunderstorms. Winds are on the increase Tuesday, especially in the southwestern Plains where they may gust over 50 mph and be even stronger Wednesday. Meanwhile, the West continues to be pummeled by heavy precipitation and strong winds as well.
| Rural Advocate News | Friday February 17, 2023 |
Partnership to Protect the U.S. from African Swine Fever A new partnership was put in place at the National Association of State Departments of Agriculture Winter Policy Conference. NASDA, the USDA, the National Pork Board, and the National Pork Producers Council are working together to enhance coordination and preparedness to prevent and protect the United States from African swine fever. “When you bring together state, federal, and industry groups with different strengths to take on challenges, you see a united force of resilience on all fronts,” says NASDA CEO Ted McKinney. “This collaboration will lead to better response to outbreaks and better animal health and welfare across the country.” African swine fever hasn’t currently crossed into the U.S. but being prepared to respond and coordinate prevention methods at all levels better ensures the protection of America’s swine herds. “We all play an important role in keeping American agriculture safe and working together enhances our efforts,” says NPPC President Terry Wolters. *********************************************************************************** Positive Reaction to Torres Small Nomination Senate Ag Chair Debbie Stabenow is pleased with the nomination of Xochitl (so-CHEEL) Torres Small to be the new Deputy Secretary of Agriculture at USDA. “As Undersecretary of Rural Development, she gave a voice to the 60 million people who call rural America their home,” she says. “I’ve been impressed with her commitment to addressing challenges in our food supply chain, fighting the climate crisis, and creating good paying jobs in rural America.” The American Farm Bureau Federation also congratulated Torres Small on her nomination. “Her experience with rural America and her time on the House Agriculture Committee give her important perspectives to address the issues facing America’s farmers and ranchers,” says AFB President Zippy Duvall. He also says the organization and its members look forward to working with her to ensure USDA continues to support America’s farmers and their mission to grow safe, affordable food for families across the nation. *********************************************************************************** U.S. Farm Exports to Drop by 12 Percent Over Three Years The USDA projected America’s food and agricultural exports will drop by 12 percent through fiscal year 2026. The erosion will be caused by a global economic slowdown, inflation, higher interest rates, and the strong U.S. dollar. Overall economic conditions are projected to slow U.S. exports quicker than imports, leading to a trade deficit. USDA projections show that exports will drop across the board, but grains and soybeans will get hit the hardest. Reduced export volumes will also mean lower commodity prices. But 2027 is expected to show a rebound in exports. Farm exports were forecast at $190 billion this year, dropping to $166.3 billion in 2026, and then rising to $182.2 billion by 2032, the last year of the ten-year baseline. Imports will also slow down but are expected to recover by 2032. Food and ag imports were forecast at $199.1 billion this year and grow to $200 billion by 2032. *********************************************************************************** USDA Invests $63 Million in High-Speed Internet for Rural Americans Ag Secretary Tom Vilsack says USDA is investing $63 million to bring high-speed internet access to people living and working in rural areas of Illinois, Minnesota, Michigan, and Mississippi. “Investing in high-speed internet is a fundamental part of our partnership with rural communities,” he says. “Connecting rural Americans with reliable internet brings new and innovative ideas to the rest of our country.” The $63 million in grants comes from the third round of funding under the ReConnect Program, in which USDA has invested a total of $1.7 billion. Since the program’s beginning, the agency has invested $3.2 billion to bring high-speed internet access to people in rural communities. The funds will be used for one project in each of the four states. To be eligible for ReConnect Program funding, an applicant must serve an area that lacks access to service speeds of 100 megabits per second downloads and 20 Mbps for uploads. *********************************************************************************** House Ag Chair Comments on CBO Baseline Projections The House Agriculture Committee completed an analysis of the Congressional Budget Office’s farm bill baseline spending estimates. The analysis shows that compared to anticipated mandatory spending under the 2018 Farm Bill, commodity support program support is expected to decrease by 12 percent, while spending on conservation, nutrition, and federal crop insurance are projected to increase by 19 percent, 82 percent, and 26 percent, respectively. Following the projections, House Ag Chair Glenn “GT” Thompson said the CBO baseline underscores what he’s been consistently hearing from producers around the country. “In light of the record-high input costs and volatile markets and weather, improvements to farm policy are necessary and warranted," he says. "Additionally, the roughly 80 percent increase to the baseline for nutrition programs since the last farm bill was enacted, namely due to the Biden Administration’s careless update to the Thrifty Food Plan, furthers the Committee’s obligation to oversight and accountability.” *********************************************************************************** John Deere Continues 80-Year Partnership with FFA John Deere announced a donation of $1 million to the National FFA Organization. The donation will get used to support the growth of future leaders, feed agriculture’s talent pipeline, and honor the organization’s community service efforts. It also builds on the 80-year partnership between John Deere and National FFA. “We are thrilled to continue our partnership with John Deere,” says Molly Ball, president of the National FFA Foundation. “They’ve been unwavering in their support for more than 80 years and continue to see the potential leaders in each one of our members and advisors.” FFA will also be raising funds during Give FFA Day on Thursday, February 23. A donation of any amount from the public will support FFA and agricultural education. It’s a chance to open doors for members to explore their interests and discover fulfilling careers. To get involved or to donate, go to FFA.org on February 23.
| Rural Advocate News | Friday February 17, 2023 |
Friday Watch List Markets There are few government reports other than the Index of Leading Economic Indicators. We will also be watching for any change in South American weather, and any new corn or soybean export sales announced at 8 a.m. We continue to wait for the long-delayed CFTC Commitment of Traders report. Weather A system continues to push off the East Coast on Friday. Much of the hazards associated with the system have ended across the primary growing areas and a quieter day is in store. Temperatures behind the system are largely below-normal though some warmth is returning to the Northern Plains and Canadian Prairies.
| Rural Advocate News | Thursday February 16, 2023 |
Biden to Nominate Xochitl Torres Small as USDA Deputy Secretary President Joe Biden Wednesday announced his intent to nominate Xochitl (So-CHEEL) Torres Small to serve as Deputy Secretary of Agriculture at the Department of Agriculture. The Senate confirmed Torres Small to serve as the Under Secretary for Rural Development on October 7, 2021. Before serving as Undersecretary, Torres Small was a Representative for New Mexico's second congressional district, the fifth largest district in the country. As a United States Representative, Torres Small served as a member of the House Agriculture Committee. Agriculture Secretary Tom Vilsack says of the announcement, "Her expertise will further USDA's mission to advance equity and opportunity in and for rural America," adding, "I am fully confident in Under Secretary Torres Small's ability to excel in this essential role at the Department." Upon the conclusion of Deputy Secretary Jewel Bronaugh’s service with USDA, Kevin Shea, APHIS Administrator and a career public servant with more than 40 years at USDA, will serve as Acting Deputy Secretary. *********************************************************************************** Still time to respond to the 2022 Census of Agriculture Farmers and ranchers still have time to be counted in the 2022 Census of Agriculture, according to USDA’s National Agricultural Statistics Service. Although the deadline for submitting the ag census just passed, NASS will continue to accept completed census questionnaires through the spring to ensure all farmers and ranchers take advantage of the opportunity to be represented in the widely used data. NASS Administrator Hubert Hamer says, "We want all producers to use their voices to help shape the future of American agriculture." NASS will continue to follow up with producers through the spring with mailings, phone calls, and personal visits. Farmers and ranchers are encouraged to complete their ag census online at agcounts.usda.gov or by mail as soon as possible. Federal law mandates that everyone who received the 2022 Census of Agriculture questionnaire complete and return it. The same law requires NASS to keep all submissions confidential. NASS will release the results of the ag census in early 2024. *********************************************************************************** Wheat Product Inflation Outpaced Food Price Inflation in 2022 Consumer prices for wheat-based products were up substantially in 2022 compared to 2021, as indicated by the Consumer Price Index. USDA's Economic Research Service reports that the prices of various wheat products were up more than ten percent from 2021. The increase outpaced the inflation rate in the broader "all food" category, which was up 9.9 percent, more than double the average increase of the previous decade. The average price level across the cereals and bakery products category was up 13 percent in 2022, well above the previous year's increase of 2.3 percent and more than three times as large as any year in the past decade. Flour prices and prepared flour mixes were nearly 19 percent higher in 2022, far exceeding the average from the previous decade. Commodity prices for wheat were elevated in 2021 and 2022, but the increase in prices for wheat-based consumer products did not fully appear until 2022. *********************************************************************************** USGC Launches Corn Sustainability Assurance Protocol The U.S. Grains Council formally launched its Corn Sustainability Assurance Protocol and Sustainable Corn Exports web platform Wednesday. The launch is part of the 20th International Marketing Conference and 63rd Annual Membership Meeting in Savannah, Georgia. The CSAP is a way for U.S. corn producers to provide insights into their sustainable farming practices, continuing to strengthen global sales by highlighting their alignment with increasingly climate-focused markets. The Sustainable Corn Exports web platform complements the CSAP by making it operational. Through the SCE, U.S. corn buyers can issue shipment-specific “Records of Sustainability” to allow overseas corn importers to easily determine and document the compliance of U.S. corn shipments with local sustainability requirements. USGC President and CEO Ryan LeGrand says, “The CSAP is a recognition of farmers’ extraordinary socioeconomic importance, and a way to further improve the appeal of their products with end-users around the world.” *********************************************************************************** Pork Checkoff Reports 2022 Exports Exports of pork and pork products surpassed $7.6 billion and 2.6 million metric tons last year. Those exports added $61.26 to the value of each hog marketed and represented 27.5 percent of production, according to the Pork Checkoff. Pork exports finished 2022 on a decidedly upward trajectory as December shipments reached 244,718 metric tons, up 13 percent year-over-year and the second largest of 2022, slightly below November. The year-end export data was a decrease compared to 2021, which was a record year, of 8.5 percent in volume and five percent in value. December exports also trended higher year-over-year to China/Hong Kong, the Dominican Republic, the Philippines and Australia, and set a value record in Central America. The Mexican market is the shining star and leading volume and value destination for U.S. Pork in 2022, with a volume increase of ten percent at 959.7 metric tons and a value increase of 21 percent at $2,034 billion. *********************************************************************************** John Deere Continues 80-year FFA Partnership with $1 Million Donation Building on 80 years of partnership, John Deere announced a donation of $1 million to the National FFA Organization. The donation will support the growth of future leaders, feed agriculture's talent pipeline, and honor the organization's community service efforts. John Deere is the longest-running sponsor of the National FFA Organization and continues to advocate for FFA, its members, and advisors. National FFA Foundation President Molly Ball says, "For more than 80 years, they've been unwavering in their support and continue to see the potential leaders in each one of our members and our advisors.” In addition to supporting the organization financially, John Deere also has many employees who are former FFA members or supporters of the organization. As a result, they have one of the country's largest FFA Alumni & Supporters chapters. The chapter will be involved during FFA Week, offering members opportunities to participate in activities promoting FFA and supporting local chapters.
| Rural Advocate News | Thursday February 16, 2023 |
Thursday Watch List Markets DTN will be watching the initial and continuing jobless claims, producer price index and housing starts, as well as export sales for corn and soybeans, and any weather changes for South America. Weather A system continues to push northeast near the Ohio River on Thursday. A band of snow continues from Nebraska to Michigan while periods of thunderstorms develop near and east of the Mississippi River. Some of these storms could be severe with tornadoes and strong winds.
| Rural Advocate News | Wednesday February 15, 2023 |
Consumer Price Index Increases The Consumer Price Index rose 0.5 percent in January on a seasonally adjusted basis, after increasing 0.1 percent in December, the U.S. Bureau of Labor Statistics reported Tuesday. Over the last 12 months, the all-items index increased 6.4 percent before seasonal adjustment. The food index increased 0.5 percent in January, and the food at home index rose 0.4 percent over the month. Four of the six major grocery store food group indexes increased over the month. The index for other food at home rose 0.7 percent in January. The index for meats, poultry, fish, and eggs increased 0.7 percent over the month, as the index for eggs rose 8.5 percent. The index for cereals and bakery products rose 1.0 percent over the month, while the index for nonalcoholic beverages increased 0.4 percent in January. In contrast, the fruits and vegetables index fell 0.5 percent over the month, with the fresh vegetables index declining 2.3 percent. The index for dairy and related products was unchanged in January. *********************************************************************************** New Decree by Mexico Allows for Some GM Corn Imports Mexico officials issued a new decree this week calling for a ban on imports of biotech corn used for certain purposes, effective immediately. The decree also indicated the Mexican government would continue to allow imports of biotech corn used as animal feed while exploring substitutes. Once substitutes are established to satisfy supply needs, all GM corn will be banned. The National Corn Growers Association expressed serious concern with the accelerated implementation timeline. NCGA President Tom Haag says, "Singling out corn – our number one ag export to Mexico – and hastening an import ban on numerous food-grade uses makes USMCA a dead letter unless it's enforced." NCGA continues to call on the Biden administration to initiate a U.S.-Mexico-Canada Agreement dispute settlement panel regarding the issue. The ban, according to NCGA, would be catastrophic for American corn growers as well as the Mexican people, who depend on corn as a major staple of their food supply. *********************************************************************************** States Considering Grocery Tax Relief Lawmakers in several states are considering tax relief for consumers at the grocery store. Progressive Grocer reports many starts that charge a grocery tax are working to extend, end or change the charges as a form of inflation relief. Mississippi, home to the highest grocery tax in the nation of seven percent, recently proposed a bill to slash the tax rate in half. A poll of Mississippi consumers found 68 percent favor suspending the grocery tax. Meanwhile, Tennessee Governor Bill Lee has considered another grocery tax holiday following a four-week suspension last year. Lee says, "We should do that again this year, but let's extend it to three consecutive months." Earlier this month, Oklahoma Governor Kevin Stitt proposed to halt the state grocery tax of 4.5 percent. Meanwhile, Missouri lawmakers are considering removal of the one percent grocery tax in the state. Progressive Grocery reports other states are looking at pushing the decision back to municipal governments. *********************************************************************************** Deliveries of Caloric Sweeteners Rising Total caloric sweetener deliveries—an indicator of sweetener consumption in the United States—rose by one percent in 2021 to 127.4 pounds per capita, according to USDA’s Economic Research Service. Annual growth in per capita sweetener deliveries had not been observed since 2014 amid the backdrop of a long-term declining trend that started after peaking at 153.7 pounds in 1999. Growth in 2021 was driven by an increase in refined sugar deliveries per capita, the largest component, which were up 1.9 percent in 2021 at 69.8 pounds and the highest since 1995. The growth countered the 1.2 percent decrease in per capita high-fructose corn syrup deliveries to 39.5 pounds. High-fructose corn syrup deliveries, the other major component, have been steadily decreasing since topping out at 65.9 pounds in 1999, driving the long-term decline in total sweetener deliveries. While per capita deliveries of other caloric sweeteners increased by 2.4 percent in 2021, the volumes have been relatively small, historically hovering at 20 pounds. *********************************************************************************** US Tractor Sales Start 2023 Lower U.S. ag tractor sales finished January 2023 in the negative, while all segments of ag equipment grew in Canada, according to the latest data from the Association of Equipment Manufacturers. Total U.S. ag tractor unit sales fell for January in all segments except one, with 100-plus horsepower two-wheel-drive tractors growing 22.8 percent. U.S. combine sales, however, continued its growth streak, climbing 132.7 percent year-over-year. In Canada, combine harvesters led sales again, up 179.6 percent, moving 137 units in January. Overall unit sales in tractors finished the month up seven percent. Curt Blades of AEM says, "Most of the trends we're seeing in this month's report continue what we saw throughout most of 2022." Blades adds, "However, the industry-wide growth we see in Canada this month is a pleasant sight, and we hope that trends continue and expands to the U.S. market." *********************************************************************************** USDA: Al Gore to Keynote Agriculture Innovation Mission for Climate Summit The Department of Agriculture Tuesday announced Former Vice Preside Al Gore as the opening keynote speaker for the Agriculture Innovation Mission for Climate Summit. The AIM for Climate Summit is scheduled for May 8-10 this year, in Washington, D.C. USDA says the summit will bring together partners to increase and accelerate investment in and support for climate-smart agriculture and food systems innovation. Agriculture Secretary Tom Vilsack says of Gore, "He has been on the forefront of the climate crisis for more than 40 years and is a leader in the international response to combating climate change." Launched at COP26 in 2021, AIM for Climate is an initiative co-led by the United Arab Emirates and the United States that seeks to enable global partnerships and solutions at the intersection of agriculture and climate change. The deadline to submit proposals for these activities is Thursday, February 24. For more details on how to apply, visit the AIM for Climate Summit website.
| Rural Advocate News | Wednesday February 15, 2023 |
Wednesday Watch List Markets The U.S. Commerce Department's retail sales report for January is due out at 7:30 a.m. CST, followed by the Federal Reserve's report of industrial production in January at 8:15 a.m. The U.S. Energy Department's weekly report of energy inventories will be released at 9:30 a.m. and includes ethanol production. Traders continue to monitor the latest weather forecasts. Weather Showers continue to move through the northern Midwest on Wednesday with some stronger winds across the region that are producing blowing snow and some blizzard conditions in the Upper Midwest. A storm system in the Four Corners area will move through the Southern Plains throughout the day. On the northern side of the track, moderate to heavy snow will develop from Colorado through much of Kansas and southern Nebraska. Strong to severe thunderstorms will develop over southern Texas into the Lower Mississippi Valley later in the day.
| Rural Advocate News | Tuesday February 14, 2023 |
USDA Unveils Investments for Addressing Water Supply Challenges for Producers in the West The Department of Agriculture Monday announced new investments and strategies to help farmers and ranchers conserve water, address climate change and build drought resilience in the West. The effort is through the Western Water and Working Lands Framework for Conservation Action to address key water and land management challenges across 17 Western States. The framework includes guidelines for identifying vulnerable agricultural landscapes and 13 strategies to help NRCS state leaders, water resource managers, and producers respond to priority challenges. Guided by this new framework, the WaterSMART Initiative will invest $25 million in three new priority areas and 37 existing priority areas, assisting communities and producers in the West. NRCS Chief Terry Cosby says, “USDA is utilizing this framework and all available tools to deliver assistance that the severity of the water supply challenges in the West demand.” From 2020 to 2022, more than $410 million of annual conservation assistance NRCS provided to producers helped address drought in the West. *********************************************************************************** Biden Administration Announces IRA Funding for Climate-Smart Agriculture Agriculture Secretary Tom Vilsack Monday announced funding for agricultural producers and forest landowners to participate in voluntary conservation programs and adopt climate-smart practices. The Inflation Reduction Act provided an additional $19.5 billion over five years for climate-smart agriculture through several USDA Natural Resources Conservation Service programs. NRCS is making available $850 million in fiscal year 2023 for its oversubscribed conservation programs: the Environmental Quality Incentives Program, Conservation Stewardship Program, Agricultural Conservation Easement Program and Regional Conservation Partnership Program. Secretary Vilsack says, "We know that agriculture plays a critical role in the nation's effort to address climate change." The Inflation Reduction Act funding includes an additional $8.45 billion for EQIP, $4.95 billion for RCPP, $3.25 billion for CSP, and $1.4 billion for ACEP. The increased funding levels begin in fiscal year 2023 and rapidly build over four years. The additional investments are estimated to help hundreds of thousands of farmers and ranchers apply conservation to millions of acres of land. *********************************************************************************** USDA Accepting Applications for Trade Mission to Japan USDA’s Foreign Agricultural Service is accepting applications from exporters of U.S. farm and food products for a two-city trade mission to Japan, June 5-8. The trade mission offers U.S. agribusinesses the potential to increase or expand their sales to Japan, one of the United States’ top five agricultural export markets. U.S. exports of agricultural products to Japan exceeded $14.6 billion in 2022. FAS Administrator Daniel B. Whitley says, “This trade mission will help many U.S. agribusinesses establish new business connections with their Japanese counterparts and further expand U.S. agricultural exports to this key Asian market.” Trade mission participants will travel to Tokyo and Osaka, connecting with potential customers and learning first-hand from government and industry leaders about local market conditions. Participants will also visit local retail stores and food manufacturers to round out the program. Applications are due by February 27. Those interested in participating in the trade mission should visit USDA’s FAS website, fas.usda.gov. *********************************************************************************** NCGA: Higher Renewable Fuel Volumes Good Security, Economy and Environment The National Corn Growers Association says higher renewable fuel volumes over the next three years would go a long way in improving energy security. Additionally, NCGA says higher volumes would help lower gas prices and reduce greenhouse gas emissions, according to recent comments submitted by NCGA to the Environmental Protection Agency. The Renewable Fuel Standard requires that U.S. transportation fuel contain a minimum volume of renewable fuel each year. NCGA’s comments were in response to EPA’s proposed volume requirements for 2023, 2024 and 2025. NCGA President Tom Haag says, “NCGA supports EPA’s proposal of annual increases in volumes, including an implied conventional biofuel volume of 15.25 billion gallons, and recognition that ethanol plays a critical role in cutting GHG emissions and our energy security.” NCGA also noted that renewable fuel adds more than 20 billion gallons to the nation’s fuel supply annually, lowering consumer costs, creating rural jobs and reducing greenhouse gas emissions by more than 1 billion metric tons since the RFS was enacted. *********************************************************************************** New Report Predicts Crop Pest and Pathogen Risks Patter Ag Monday released its new Predictive Ag Report. The report can help corn and soybean farmers make better-informed decisions about managing impactful pests and pathogens, according to the company. Specifically, the report provides information about corn rootworm and sudden death syndrome. Pattern Ag operates the world's largest soil metagenomics database, with more than 200 billion DNA reads. The Predictive Ag Report is an anonymized, aggregated analysis of the Pattern Ag data. Available in print or digital form, the report predicts pest and pathogen risks 12 months in advance with more than 90 percent accuracy. This information can help agronomists and farmers make better-informed pest management decisions when selecting seed varieties or crop protection inputs. Pattern Ag plans to make the Predictive Ag Report available annually to help corn and soybean farmers offset economic losses caused by yield-impacting diseases. Farmers can receive a copy of the report by visiting Pattern.ag. *********************************************************************************** Fuel Prices Decline Again, Demand Increases The nation's average gas declined for the second straight week, dropping 7.3 cents from a week ago to $3.37 per gallon. The national average is up 10.9 cents from a month ago and 10.2 cents per gallon lower than a year ago. The national average diesel price fell 7.3 cents last week and stands at $4.52 per gallon. GasBuddy's Patrick De Haan says, “While diesel prices likely have a long way to fall as inventories continue to improve, gasoline prices in some areas have gone up in the last weeks as the transition to summer gasoline is just around the corner.” GasBuddy data shows that gasoline demand has risen for the third straight week, a trend that will likely continue as spring arrives. Also, refinery maintenance season will soon be in full force, likely putting upward pressure on prices. On average, gasoline prices rise between 35 and 85 cents per gallon between March and Memorial Day.
| Rural Advocate News | Tuesday February 14, 2023 |
Tuesday Watch List Markets The U.S. Labor Department's consumer price index for January is set for 7:30 a.m. CST Tuesday, putting attention back on the likelihood of more rate hikes ahead. Traders will check the latest weather forecasts and pause for a possible export sale announcement at 8 a.m. USDA's Livestock, Dairy and Poultry outlook will be out at 2 p.m. Weather A system that developed across the Central and Southern Plains during the overnight will lift northeast today, providing widespread rainfall from northern Texas into Wisconsin. Rainfall with this system could approach up to one inch in areas. Meanwhile, above average temperatures will persist across the Upper Midwest, Great Lakes, and Upper Mississippi Valley today, with temperatures 10-20 degrees above normal.
| Rural Advocate News | Monday February 13, 2023 |
Key Happenings the Newsroom is Tracking for the Week of Feb. 12-18 Here are the Top 5 things the DTN Newsroom is tracking for the week of Feb. 12. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. Loading up for Louisville: DTN will have several team members at the National Farm Machinery Show in Louisville. Watch for equipment and other updates from the show floor by our Progressive Farmer Senior Editor Dan Miller. We'll also be hosting a series of workshops on site. Ag Meteorologist John Baranick will discuss the latest spring and summer forecast, and Lead Analyst Todd Hultman will give his long-range outlook on the markets. Also, next week Progressive Farmer Senior Editor Joel Reichenberger will be reporting from the World Ag Expo in Tulare, California. 2. Tale of two storms: We'll be watching a pair of storm systems rolling across the U.S. during the week, each bringing the chance of snow and hazardous conditions, as well as short-lived cold snaps in northern areas. 3. Summit Series kick-off: DTN followers are familiar with our industry-leading DTN Ag Summit, historically held in December. They'll also likely know we moved to a totally virtual event in 2022 to allow more access to the thought-provoking speakers and presentations. The next step in that is our Ag Summit Series, which will feature several one-day virtual events throughout the year, culminating in the multi-day DTN Ag Summit in December. Our initial Series event, scheduled for Feb. 28, is "Get Set for Spring." 4. Reports to watch: DTN's commodity analysts team will be watching for further market reaction to crop conditions in South America as well as the potential for yet more escalation in the war in Ukraine. We're also tracking USDA grain export inspections reports on Monday, Tuesday's Consumer Price Index tallies, and Friday's release of the U.S. index of leading economic indicators. 5. And a birthday to note: We're marking the 137th anniversary of Progressive Farmer Magazine, which was Feb. 10 -- a feat we're all pretty proud of around here. If you haven't seen February's "The Art of Planting" issue, with a focus on getting that planter ready for spring.
| Rural Advocate News | Monday February 13, 2023 |
Another Record Year for Farm Exports The American agriculture sector posted its best export year ever in 2022. USDA says international sales of America’s farm and food products reached $196 billion. Final trade data from the U.S. Commerce Department showed U.S. ag exports increased 11 percent, or $19.5 billion, from the previous record set in 2021. The value of sales increased in all of America’s top ten ag export markets, including China, Mexico, Canada, Japan, the European Union, South Korea, Taiwan, the Philippines, Columbia, and Vietnam. Sales in seven of the ten countries set new records. The top U.S. commodity exports in 2022 were soybeans, corn, beef, dairy, cotton, and tree nuts. International sales of many products, including soybeans, cotton, dairy, beef, ethanol, poultry, soybean meal, distilled spirits, and distillers’ grains, all reached record values. “Overall, there were 30 markets where U.S. exports exceeded $1 billion in 2022, up from 27 in 2021,” says Ag Secretary Tom Vilsack. *********************************************************************************** Chicago Fed: 2022 Farmland Values Jumped 12 Percent The Federal Reserve Bank of Chicago released its quarterly “Ag Letter,” showing that the district saw a strong annual increase of 12 percent in farmland values during 2022. The Fed says although the result may seem like a letdown after the even larger increase in 2021, last year’s annual gain was the second-largest in the past ten years. During the final quarter of 2022, Illinois, Indiana, Iowa, and Wisconsin still had double-digit year-over-year increases in their agricultural land values. But Indiana was the only District state to have an increase larger than the fourth quarter of 2021. Stronger agricultural credit conditions for the District also contributed to farmers’ optimism. The share of the District’s farm loan portfolio assessed as having “major” or “severe” repayment problems was 1.2 percent in the fourth quarter of last year, lower than the share reported in any final quarter since data collection began in 1998. *********************************************************************************** Senators Ask President Biden to Address Brazil’s Tariff on U.S. Ethanol Senators Amy Klobuchar of Minnesota and Chuck Grassley of Iowa sent a letter to President Biden urging him to use an upcoming meeting with Brazil’s president to discuss the country’s tax on U.S. ethanol imports. The letter comes after Brazil’s Foreign Trade Chamber reinstated an import tariff on American ethanol shipped to Brazil. The new 16 percent tariff rate, which will increase to 18 percent in 2024, is a sharp departure from the zero percent tariff rate previously shared between the two nations. “Our American ethanol industry should not be subject to prohibitive tariff and non-tariff barriers while Brazilian ethanol producers enjoy duty-free access to our market and biodiesel programs,” the senators said in the letter. “We believe this imbalance in tariffs and access to Brazil’s biofuels program is unwarranted and unfair, and we urge you to discuss this issue with the president directly.” Eight other senators signed on to the letter. *********************************************************************************** Hurricane Ian Caused Over $1 billion in Damages A University of Florida report says Hurricane Ian caused just over $1 billion in agricultural production losses. The biggest hits were to the citrus industry, vegetable growers, and melon producers. The new report from the Institute of Food and Agricultural Sciences set the estimated overall production losses at $1.03 billion. That number includes $247.1 million in damages for citrus growers, $204.6 million for vegetable and melon growers, and $195.4 million for the nursery and greenhouse industries. “The main takeaway is that there was a very significant production loss,” says Christa Court, the director of the IFAS Economic Impact Analysis Program. “These are estimates, but some of the crops aren’t at their final harvest stage.” As a result, she also says it remains to be seen what actually happens when they get to that final harvest. The report also estimates that field and row crops sustained $130.2 million in production losses from the hurricane. *********************************************************************************** The University of Minnesota Progressing on ASF Research University of Minnesota researchers are at the forefront of successful efforts to work on the African Swine Fever virus. They’re developing and validating a surrogate virus for ASF that will help develop effective mitigation strategies to control the virus and keep it from entering North America. African Swine Fever has devastated pig populations and pork production in countries around the world. The lab is one of only a handful of facilities in the U.S. to have access to the highly contagious ASF virus, and its work represents a major breakthrough in research efforts. In addition to working directly on the African Swine Fever Virus, the surrogate virus is strikingly similar to ASF in terms of its structure and stability. It can be safely used in field studies to help scientists understand more about how the virus is transmitted in real-world conditions and what strategies are effective to prevent its spread. *********************************************************************************** U.S. Wants Science From Mexico on GMO Corn Ban Doug McKalip, the new agriculture trade boss in the U.S. Trade Representative’s Office, says he’s given Mexico until February 14 to explain the science behind the country’s planned ban on GMO corn imports. Market Screener says the response will help the agency decide the next steps to resolve the long-running disagreement over Mexico’s biotechnology policies when it comes to agriculture. The next steps could include escalating the dispute settlement process under the USMCA. If it continues, the dispute threatens to disrupt the billions of dollars worth of corn trade between the United States and Mexico. McKalip says Mexico rejected 14 agricultural product traits that were submitted to them, and they didn’t provide any justification. “We want to make sure that they do the science, show their work, and make decisions based upon risk assessments,” he says. U.S. officials recently warned Mexican officials that America may take formal steps under USMCA.
| Rural Advocate News | Monday February 13, 2023 |
Monday Watch List Markets Back from the weekend, traders will follow up news concerning Friday's close call of Russian missiles near NATO territory and any related events in Ukraine, as well as take a look at the latest weather forecasts. USDA's weekly report of grain export inspections is due at 10 a.m. CST. Financial markets may turn quiet Monday afternoon, ahead of Tuesday consumer price index for January. Weather A system will develop across the Central and Southern Plains Monday into Monday night, providing widespread rainfall from northern Texas into southern Nebraska. Rainfall with this system will generally remain light, but isolated areas across north-central Texas and south-central Oklahoma could see up to a half inch of rain through Monday night. Meanwhile, above average temperatures will persist across the Northern Plains and Upper Midwest today, with temperatures 10-15 degrees above normal.
| Rural Advocate News | Friday February 10, 2023 |
Senators Reintroduce Bill to Defend Cattle Producers Senators Jon Tester, Chuck Grassley, and Mike Rounds reintroduced their “Meat Packing Special Investigator Act” to fight consolidation and enforce the national anti-trust laws. The bill would create the “Office of the Special Investigator for Competition Matters” within the USDA. The office would be made up of a team of investigators that have subpoena power and would be responsible for targeting and preventing anti-competitive practices among large players in the meat and poultry industries. “Anti-competitive behavior in the meat packing industry hurts both consumers and producers,” Rounds says. “Unfortunately, packer concentration in the beef industry today is more consolidated than it was when the Packers and Stockyards Act was first signed into law over 100 years ago.” Only four companies operate 18 of the top 20 beef slaughter facilities in the country. “It’s time we beef up the available tools to protect farm families and folks at the meat counter,” said Grassley. *********************************************************************************** Beef Exports Set Records in 2022, Pork Finishes Strong American beef exports set records for both volume and value in 2022. Despite slowing toward the end of the year, beef exports reached 1.47 million metric tons, two percent above the previous high in 2021. Export value climbed to a record $11.68 billion, 10 percent higher than in 2021 and 40 percent above the previous five-year average. “Last year was a groundbreaking year for American beef’s international presence, with global demand stronger than I’ve seen in all my years,” says Dan Halstrom, President and CEO of the U.S. Meat Export Federation. Pork exports finished lower year-over-year, but the export value was the third-largest on-record. Pork exports were trending higher as December shipments reached 244,718 metric tons, up 13 percent year-over-year and the second-largest of 2022. Higher December numbers pushed 2022 exports to 2.67 million metric tons, 8.5 percent below the previous year. Export value dropped five percent to $7.68 billion. *********************************************************************************** AFBF Responds to Falling Farm Income Report While American families are dealing with record-high grocery prices, farm families can expect to see a drop in income during 2023. American Farm Bureau Federation economists analyzed the Farm Income Forecast in their latest Market Intel Report, noting that income will fall 16 percent this year while costs will rise over four percent. “The farm income forecast is a stark reminder that American farmers and ranchers aren’t reaping benefits from higher grocery store prices,” says AFBF President Zippy Duvall. “While some commodity prices are rising, farmers are being hit by circumstances beyond their control, which is why the farm bill is so important and must get passed this year.” Adding to the challenges are rising interest rates and farm-sector debt that will increase by $31.9 billion to a record $535 billion. “Farm bill programs enable farmers to manage the risk and weather the challenges to continue feeding America’s families,” Duvall adds. *********************************************************************************** Officials to Reintroduce Bill to Expand and Strengthen Local Meat Processing Representatives Chellie Pingree of Maine and Jim Baird of Indiana, along with Senators John Thune of South Dakota and Sherrod Brown of Ohio, plan to reintroduce legislation to support small meat and poultry processors. The “Strengthening Local Processors Act” will diversify and make U.S. meat processing more resilient by giving local livestock producers more options. “One of the top concerns from livestock producers is difficulty in accessing USDA processing facilities,” Pingree says. “Their livelihoods depend on having somewhere to take their animals, but their options are severely limited in the current system.” The legislation would create a competitive grant program for small and very small establishments, state-inspected facilities, custom-exempt facilities, or new small-scale slaughter facilities to help increase processing capacity and grow resiliency. It will also create two new grant programs for meat processing workforce training. “This legislation will bolster local production and provide education and training,” Brown says. *********************************************************************************** Brazil Ties U.S. as Top Corn Exporter The USDA’s Foreign Agricultural Service says Brazil’s 2022-2023 corn exports from October through September of last year are forecast to equal those of the U.S. at 51 million tons. Brazil has seen expanding production and strong exports in the second half of its 2021-2022 marketing year. Brazil’s corn exports have exceeded those of the U.S. only one time, in the drought year of 20112-2013. Since October 2022, Brazil has exported about 25 million tons of corn, far more than the same period in any previous year. U.S. corn exports are off to a slow start. Production in 2022-2023 was smaller than initially expected, and logistical concerns on the Mississippi River made things difficult. In the last several months, Brazil has stepped in to fill some of the gap left by Argentina and Ukraine in supplying the world’s corn. But current export bids for U.S. corn are lower than Argentina and Brazil. *********************************************************************************** NFU Hosting College Conference on Cooperatives The National Farmers Union will host the College Conference on Cooperatives in Minneapolis, Minnesota, February 16-19. During the three days, participants will hear from experts in the field of cooperatives, participate in interactive learning activities and workshops, and tour co-ops in the Twin Cities. The event attracts students from across the country and is beneficial to those new to co-ops, as well as those with some previous co-op education. “NFU history is rooted in the cooperative movement, and our future is too,” says NFU President Rob Larew. “The college is a glowing example of the value Farmers Union provides to our members and their communities.” Participants will hear from a variety of speakers from local and national co-ops. The keynote luncheon will feature an address from Megan Rock, the Chief Sustainability Officer and Vice President of Sustainability and Innovation with CHS Inc. Interested students can find out more at nfu.org.
| Rural Advocate News | Friday February 10, 2023 |
Friday Watch List Markets The University of Michigan's index of U.S. consumer sentiment is set for 9 a.m. CST Friday, followed by the U.S. Treasury's report on the January federal budget. Traders will continue to monitor the latest weather forecasts and pay attention to news from outside markets. Weather The cold front to a system this week has hung up in the Southeast and will continue to produce showers on Friday. Outside of some spotty showers going through the Northeast, the rest of the country will be dry. It is a little colder than in previous days, but still rather mild for most areas of the country for mid-February.
| Rural Advocate News | Thursday February 9, 2023 |
USDA Releases February WASDE Report The Department of Agriculture Released the February World Agricultural Supply and Demand Report Wednesday. This month's 2022/23 U.S. corn outlook is for lower corn used for ethanol and larger ending stocks. Corn used for ethanol is reduced 25 million bushels. The season-average corn price received by producers was unchanged at $6.70 per bushel. The soybean outlook projects lower soybean crush and higher ending stocks. Soybean crush is forecast at 2.23 billion bushels, down 15 million from last month on lower domestic soybean meal disappearance and a higher soybean meal extraction rate. The season-average soybean price for 2022/23 is forecast at $14.30 per bushel, up 10 cents from last month. The supply and demand outlook for wheat is largely unchanged this month, with minor revisions to domestic use and ending stocks. The season-average farm price is forecast $0.10 per bushel lower at $9.00, based on prices received to date and expectations for cash prices for the remainder of 2022/23. *********************************************************************************** USDA: Electric Vehicles Force Ethanol Demand Lower A new report from USDA's Economic Research Service suggests ethanol demand may decline with the rise of electric vehicles. The Global Demand for Fuel Ethanol Through 2030 report suggests that global gasoline demand is expected to stagnate over the next decade, leaving changes in blend rates as the main determinant for future changes in fuel ethanol demand. After seeing strong growth for several years, U.S. ethanol-based demand for corn has plateaued over the last decade at about 5 billion bushels, or roughly 40 percent of U.S. corn production. Recently, demand for transportation fuels was reduced by the COVID-19 pandemic. Though these markets largely recovered, moving forward, increased adoption of hybrid or electric vehicles and continued fuel efficiency gains will decrease domestic gasoline consumption, which could decrease domestic fuel ethanol demand. These impacts could result in additional unutilized U.S. ethanol production capacity. The 114-page study is available on the Economic Research Service website, ers.usda.gov. *********************************************************************************** Below Average Runoff Continues for Upper Missouri River Basin The updated 2023 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, continues to be below average. January runoff in the Missouri River Basin above Sioux City was 1.1 million acre-feet, 134 percent of average. Runoff was above average due to warmer-than-normal temperatures in the upper basin resulting in some snowmelt runoff. Precipitation in January was below normal for most of the upper basin except for southern South Dakota, which saw above-normal precipitation. The 2023 calendar year runoff forecast above Sioux City is 21.1-million-acre feet, 82 percent of average. The runoff forecast is based on current soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. At the start of the 2023 runoff season, which typically begins around March 1, the total volume of water stored in the Missouri River Mainstem Reservoir System is expected to be 46.0 million-acre-feet, 10.1 million below the top of the carryover multiple-use zone. *********************************************************************************** NAEDA Launches Membership Engagement Platform The North American Equipment Dealers Association recently announced the launch of its new members-only dealer engagement platform, NAEDA Community. The social and communications platform will provide a central place for dealers to connect, collaborate, learn, and share. NAEDA was formed in 2022 with the recent merger of the Equipment Dealers Association, the Midwest-SouthEastern Equipment Dealers Association, the United Equipment Dealers Association and the Western Equipment Dealers Association. With this merger now firmly in place, NAEDA is looking to enhance its communications efforts with its 4000+ dealer members across North America. NAEDA CEO Kim Rominger says, “We are confident this exciting communications tool will drive engagement, help us promote our programs and services and improve the member experience with our association." NAEDA members can find the community at www.naedacommunity.com. Dealers are encouraged to share the NAEDA community with the rest of their organization so they can have the opportunity to sign up and stay connected. *********************************************************************************** ARS Scientists Improve Nutrients and add Value to Rice Crop Rice, already the primary staple for half the world’s population, is getting a makeover from a research team in New Orleans, Louisiana. The results are a more healthful grain and many potential new products. The team, based in the Agricultural Research Service’s Southern Regional Research Center, is making rice a more valuable commodity by developing new technologies that capitalize on the grain’s natural health benefits. Research chemist Stephen Boue says, "We're interested in processing treatments that enhance resistant starch and other bioactive components." Studies are underway to determine Bioactive compound's role in the prevention of cancer, heart disease, and other diseases. One such development is a rice variety that is more beneficial to human health. Rice contains 76–78 percent starch, and cooked rice typically contains one or two percent of starch that resists digestion, but the newer rice varieties have eight to ten percent resistant starch, or more. Resistant starch is not digested in the small intestine; rather, it passes through to the large intestine, where it ferments and produces beneficial metabolites. *********************************************************************************** Price of Chicken Wings Easing in Time for the Big Games Retail prices for chicken wings have been trending lower in recent months and in time for national sporting events such as the upcoming Super Bowl and the college basketball championship tournaments. Previously, a combination of limited supplies and strong demand led to a historic runup in wholesale and retail prices. Wholesale chicken wing prices reached a peak of $3.25 per pound in late May 2021, but retail prices continued to climb. At the start of the 2022 March Madness basketball tournament, the national average retail feature price was estimated at $4.29 per pound. Nearly a year later and just ahead of the 2023 Super Bowl and basketball tournament, the national average feature price is down nearly $1.70 per pound to $2.62, according to USDA’s Economic Research Service. The average wholesale price in December 2022 was 89 cents per pound, down more than $2.50 per pound from the 2021 peak.
| Rural Advocate News | Thursday February 9, 2023 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. At 9:30 a.m., the U.S. Energy Department will release its weekly report of natural gas storage. Traders will continue to keep an eye on South American weather and will pause at 8 a.m. to see if USDA has a new export sale. Outside markets continue to monitor corporate earnings season. Weather A storm system moving through the Midwest is bringing a wide band of precipitation through the region on Thursday, including a wintry mix on the backside that will lead to some moderate snow accumulation from northern Missouri through southern Wisconsin. Winds are increasing around the system as well as out in the Plains where an upper-level trough is moving in behind the system, bringing somewhat cooler air. Southeastern areas will see a cold front hang up with more showers continuing there as well.
| Rural Advocate News | Wednesday February 8, 2023 |
Farm Sector Profits Forecast to Fall in 2023 USDA's Economic Research Service released the February Farm Income Forecast Tuesday. Net farm income, a broad measure of profits, is forecast at $136.9 billion in calendar year 2023, a decrease of $25.9 billion, or 15.9 percent, relative to 2022. After adjusting for inflation, net farm income is forecast to decrease $30.5 billion, or 18.2 percent, in 2023. Despite the expected decline, net farm income in 2023 would be 26.6 percent above its 20-year average of $108.1 billion in inflation-adjusted dollars. Net cash farm income is forecast at $150.6 billion in 2023, a decrease of $39.4 billion, or 20.7 percent, relative to 2022. Cash receipts from the sale of agricultural commodities are forecast to decrease by $23.6 billion from a forecast record high of $543.4 billion in 2022 to $519.9 billion in 2023. Also contributing to the forecast of lower income in 2023 are lower direct Government payments and higher production expenses. Average net cash farm income for farm businesses is forecast to decrease 17.7 percent from 2022 to $92,400 per farm in 2023. *********************************************************************************** Improvement in Farmer Sentiment Carries Over into 2023 The Purdue University-CME Group Ag Economy Barometer Index rose again in January, to a reading of 130, four points above its 2022 year-end index value. The January survey results also pushed the index 34 percent above its 2022 low point, which occurred last June. The barometer's modest rise in January was primarily attributable to better expectations for the future as the Future Expectations Index rose five points to 127 while the Index of Current Conditions, with a value of 136, changed little compared to December. The Financial Performance Index dropped to 93 this month, down from 109 in December, but that primarily reflects producers' being asked to look ahead to 2023 and compare it to 2022 rather than comparing 2022 to 2021. Of the 400 respondents, 22 percent expect to have a larger farm operating loan than in 2022, which was down somewhat from last January when 27 percent of respondents expected to have a larger operating loan. *********************************************************************************** Record Cattle Prices Possible in 2023 USDA’s January 1 cattle inventory report places the total number of cattle and calves at 89.3 million head, consistent with trade expectations for a three percent decline from a year ago. The decline comes as cattle producers face a fourth consecutive year of contraction within the cattle cycle. That’s approaching inventory lows last seen in 2014 and 2015, at the start of the current cycle, when producers began rebuilding following the drought in 2012. Beef production is anticipated to be 6.5 percent lower in 2023 than last year. University of Illinois Economist Jason Franken suggested that all things considered, prices in 2023 are likely to exceed those of the last couple of years. Current conditions are even bringing about speculation on the possibility of exceeding record prices last set in the 4th quarter of 2014. Franken says that seems feasible for fat cattle, which are already trading around $156 per hundredweight. *********************************************************************************** House Agriculture Democrats Announce Subcommittee Leaders The top Democrat on the House Agriculture Committee announced the ranking subcommittee members Tuesday. David Scott of Georgia is the ranking member of the Committee during this session of Congress, after serving as chair in the Democrat majority in the last session. Scott announced Ohio’s Shontel Brown as the ranking member of the Subcommittee on General Farm Commodities, Risk Management, and Credit. Oregon's Andrea Salinas will serve as the top Democrat on the Subcommittee on Forestry, and Virginia's Abigail Spanberger is the ranking member of the Subcommittee on Conservation, Research, and Biotechnology. Meanwhile, Connecticut's Jahana Hayes will be the top Democrat on the Subcommittee on Nutrition, Foreign Agriculture, and Horticulture, and California’s Jim Costa assumes the same role on the Subcommittee on Livestock, Dairy, and Poultry. Finally, Yadiro Caraveo of Colorado will serve as the ranking member of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development. *********************************************************************************** Vilsack Visiting North Carolina This Week Following Tuesday's State of the Union Address, Agriculture Secretary Tom Vilsack is visiting North Carolina Wednesday and Thursday. Vilsack is hosting a series of events "underlining how the Biden-Harris Administration is delivering on its promises to grow the economy from the bottom up and the middle out by investing in rural communities." Vilsack visits Greensboro Wednesday to host a panel discussion highlighting the major investment being made by USDA to expand markets for America's climate-smart commodities. During the visit, Secretary Vilsack will also visit an agricultural facility and see firsthand some of the innovative, cutting-edge work that will be supported in the area by this investment. On Thursday, Secretary Vilsack will visit Raleigh, where he will host a panel discussion underlining the significant and transformative investments made by USDA to bolster infrastructure in rural North Carolinian communities. Investing in essential infrastructure like high-speed broadband, water infrastructure, and more is a pillar of USDA's efforts to create a "circular economy" in rural North Carolina and beyond. *********************************************************************************** USDA Developing New Ways to Track COVID in Wild and Domestic Animals Scientists with USDA’s Agricultural Research Service are developing new tests to identify and track the COVID virus in wild and domestic animals. Funded by the American Rescue Plan, USDA’s Animal and Plant Health Inspection Service is implementing $300 million to conduct monitoring and surveillance of susceptible animals for the COVID virus. Through the initiative, ARS, in partnership with APHIS, is conducting five research projects to improve its understanding of the virus and to help APHIS accomplish its goal of building an early warning system to potentially prevent or limit the next zoonotic disease outbreak or global pandemic. Two of the projects call for developing easy-to-use field tests to quickly identify COVID infection in wildlife and domestic animals. Currently, all official testing of animals for COVID requires sending samples to certified laboratories and can take a week or more to provide answers. This may be too long to prevent early spread of infection.
| Rural Advocate News | Wednesday February 8, 2023 |
Wednesday Watch List Markets The U.S. Energy Department will release its weekly inventory report at 9:30 a.m. CST, including ethanol production. At 11 a.m., USDA releases its WASDE report with this month's attention largely on South American production estimates. Traders will keep watch over the latest weather forecasts and other outside news. Weather A storm continues to build over Texas early Wednesday morning. The storm center should push northeast into the Midwest later in the day Wednesday. Widespread precipitation in Texas will translate northeast with the storm throughout the day, bringing some heavy amounts and potential for severe weather into the Delta as well. Some snow will mix in on the northern side of the track as the band gets into the Midwest from eastern Kansas into Iowa overnight. Strong winds will start to develop near the low center in the Midwest and Delta tonight into Thursday as well.
| Rural Advocate News | Tuesday February 7, 2023 |
USDA Forecasts 2023 Net Farm Income to Fall 16% From 2022 But Remain Above 20-Year Average USDA's Economic Research Service expects 2023 farm incomes to decline nearly 16% compared to 2022 due to lower cash receipts, smaller government payments and higher production expenses. On Tuesday, the agency forecast total net farm income at $136.9 billion for the 2023 calendar year. After adjusting for inflation, it'd be the fifth-highest net farm income since 2002. Net cash income, which doesn't include economic depreciation, changes in inventories and the cost of operator dwellings, is forecast to decline nearly 21% relative to 2022, to $150.6 billion. Matt Bennett, an Illinois farmer and co-founder of brokerage and consulting firm AgMarket.Net, said he doesn't know what the market's going to do in 2023. "What I do know is this is the most expensive corn crop the U.S. farmer will have ever put in the ground," he told DTN on the sidelines of AgMarket.Net's Farming for Profit, Not Price conference. "We run that risk that if the market ends up turning us out, we could be in a situation where we could be underwater even with phenomenal yields." He shared similar projections from the University of Illinois Farmdoc team, which called for an average return of $72 per acre of corn grown on high-productivity Illinois soil. While that's significantly lower than the last two years' $300-plus-per-acre returns, it's significantly better than what farmers saw from 2017 to 2019. For farmers, it's important to consider their crop insurance and marketing strategies carefully in 2023, adding that there are ways to lock in more than $72 per acre in profit right now using various strategies. "A person needs to make sure they're not making marketing decisions about 2023 based on how much money they made in 2021 and '22," Bennett said. "Look at 2023 as a standalone year." CASH RECEIPTS Overall cash receipts are expected to decline by $23.6 billion, or 4.3%, from 2022. USDA said cash receipts for crops, particularly corn and soybeans, are expected to contribute $8.9 billion to the decline, while lower animal and animal product receipts are expected to account for $14.7 billion, following lower prices for milk, eggs, broilers and hogs. USDA says there are two factors that influence the change in cash receipts from year to year: changes in prices and changes in quantities. "In 2023, falling prices are expected to account for most of the decline in cash receipts," the agency states. PRODUCTION EXPENSES Farm sector production expenses, which include operator dwellings, are expected to increase by $18.2 billion from 2022 to $459.5 billion in 2023. While that sets a record in nominal dollars, it remains below 2014's record high when adjusted for inflation. "Most of the production expense categories are projected to remain above their 2021 levels in 2023, in both nominal and inflation-adjusted dollars," USDA said. Feed costs remain the biggest line item at $72.7 billion. Although that's $3.9 billion less than 2022, it comes on the heels of an $11.3 billion increase in the prior year. Fertilizer, lime and soil conditioners are the second-largest expenses category at $42.2 billion, just shy of 2022's record high of $42.5 billion. USDA notes considerable increases in farmers' interest expenses, up more than 22% from the year before, as well as labor costs, which are expected to grow 7% from 2022. Fuel and rent expenses are expected to decline in 2023. Fuel expenses are projected to fall nearly 15% to $3 billion due to lower U.S. Energy Information Agency forecast diesel prices. USDA says net rent is expected to decline $1.6 billion, or 8.2%. "If realized, this decline would be the first reduction in net rent since 2018 and, in part, reflects the forecast decline in net income." GOVERNMENT PAYMENTS At $10.2 billion, government payments are anticipated to be 34.4% lower than 2022 due to lower supplemental ad hoc disaster assistance. These payments include farm program payments, such as the Agricultural Risk Coverage (ARC) program and Price Loss Coverage (PLC) program but exclude USDA loans and insurance indemnity payments made by the Federal Crop Insurance Corporation. USDA noted that government payments hit a record high of $45.6 billion in calendar year 2020, before declining to $25.9 billion in 2021 and $15.6 billion in 2022. Much of this is due to lower payments from COVID-19-era programs, such as the Coronavirus Food Assistance Program (CFAP), the Paycheck Protection Program, the Emergency Relief Program and the Emergency Livestock Relief Program. Conservation program payments are expected to total $4 billion in 2023, up nearly half a million dollars from the previous year. Farm bill commodity program payments under ARC and PLC are expected to decline more than 81% from 2022 to $303.4 million due to higher commodity prices.
| Rural Advocate News | Tuesday February 7, 2023 |
Senators Urge USDA to Address Avian Flu Immediately A group of Senators urges the Department of Agriculture's Animal and Plant Health Inspection Service to take swift action to address the ongoing avian influenza outbreak. The lawmakers ask Agriculture Secretary Tom Vilsack to quickly use funds provided by Congress in the Fiscal Year 2023 Agriculture Appropriations bill. Led by Senator Tammy Baldwin, a Wisconsin Democrat, the lawmakers say, "it is imperative the agency quickly deploy additional resources and work with the states in improving biosecurity measures within the avian supply chain, including the disinfection of sites and the testing and quarantining of affected flocks." As of January 31, 2023, APHIS confirmed avian flu had been found in 745 flocks in 47 states, and affected over 58 million birds, directly contributing to rising egg prices. In the Fiscal Year 2023 Omnibus Appropriations Act, Congress provided an increase in annual funding to address the avian influenza outbreak, including over $64 million for improving avian health, and updated guidance on proactively mitigating the spread of disease. *********************************************************************************** Lawmakers Introduce Rural Internet Improvement Act A bipartisan group of Senators recently introduced legislation to merge USDA broadband programs. New Mexico Democrat Ben Ray Luján and South Dakota Republican John Thune reintroduced the Rural Internet Improvement Act. The legislation would streamline and bolster USDA Rural Development broadband programs and ensure their funding is targeted to rural areas that need it the most. Senator Thune says, "Our bipartisan legislation would help bridge the digital divide by improving USDA's ReConnect Program to ensure its funding goes to truly unserved areas.” The Rural Internet Improvement Act would: merge and codify the popular Rural e-Connectivity Pilot Program, or ReConnect program, with USDA’s traditional broadband loan and grant program. The legislation would also ensure ReConnect funding is going to areas most in need of reliable broadband service by limiting funding to areas where at least 90 percent of households lack access to broadband service. Finally, the bill would Improve coordination between USDA and the Federal Communications Commission on broadband programs. *********************************************************************************** Cow-calf Producers with Larger Paddocks Rotate Cattle Less Frequently USDA’s Economic Research Service reports that as average paddock size increases, farmers and ranchers tend to rotate their cattle less frequently. Rotational grazing systems rotate animals among a series of paddocks, or fenced pasture areas, allowing forage to recover before returning the cattle to graze in that spot again. A key decision for ranchers that affects forage growth is the number of rotations for a given number of paddocks. A large portion, 84 percent, of operations with small paddocks of 19 acres or less, rotated their cattle so that each paddock had four or more rotations per year. Intensive rotational grazing systems use an average grazing period of 14 or fewer days per paddock. In contrast, researchers found that about 52 percent of operations using large paddocks of 40 acres or more rotated cattle four or more times per year. The pattern of smaller paddocks and more rotations was even more evident for basic rotational grazing operations, which use an average grazing period longer than 14 days. *********************************************************************************** Bayer, Kimitec, Partner on Commercializing Biologicals Bayer and Kimitec announced a new strategic partnership focused on accelerating the development and commercialization of biological crop protection solutions and biostimulants. As part of a global agreement, both companies will become key partners to advance and establish biological solutions derived from natural sources: crop protection products that address pests, diseases and weeds, as well as biostimulants to promote plant growth. Kimitec operates Europe's largest biotechnological innovation hub with 15 years of experience in researching and discovering natural molecules and compounds for agriculture. By leveraging Bayer's product development expertise with Kimitec's proven discovery capabilities, biological product development will be accelerated to build integrated crop management solutions that can scale and develop through Bayer's global infrastructure backbone. This includes field testing, product support and commercialization. Dr. Robert Reiter, Head of R&D for Bayer's Crop Science division, says, “Bayer is committed to providing growers with the benefits of biological solutions as part of an integrated crop management system.” *********************************************************************************** Students to Celebrate Agriculture and Leadership Around the Country This month, FFA members around the country will celebrate agriculture and FFA during National FFA Week. Whether through service projects or community gatherings, National FFA Week is a time for FFA members to raise awareness about the National FFA Organization's role in developing future leaders and the importance of agricultural education. National FFA Week always runs from Saturday to Saturday and encompasses February 22, George Washington's birthday. This year, the week kicks off on February 18 and culminates on Saturday, February 25. The National FFA Board of Directors designated the weeklong tradition, which began in 1948, to recognize Washington's legacy as an agriculturist and farmer. A group of young farmers founded FFA in 1928, and the organization has been influencing generations that agriculture is more than planting and harvesting — it involves science, business and more. National FFA Week is a time for FFA members to share agriculture with their fellow students and communities. *********************************************************************************** Fuel Prices Decline for the First Time in 2023 For the first time in 2023, the nation's average gas price posted a weekly drop, falling 4.4 cents from a week ago to $3.44 per gallon. The national average is up 17.5 cents from a month ago and 1.7 cents per gallon higher than a year ago. The national average diesel price fell 5.2 cents last week and stands at $4.60 per gallon. Still, GasBuddy reports U.S. retail gasoline demand rose 2.2 percent last week. GasBuddy’s Patrick De Haan says, “While the decline in both gasoline and diesel prices is terrific, it’s not unusual to see prices falling in February, which tends to be the month with some of the lowest gasoline prices of the year thanks to seasonally weak demand.” For diesel, De Haan says we’re likely to see more declines, and potentially much more significant ones in the weeks ahead as imports of distillate have accelerated, leading to a sell-off.
| Rural Advocate News | Tuesday February 7, 2023 |
Tuesday Watch List Markets At 7:30 a.m. CST Tuesday, the U.S. Census Bureau will display the trade deficit for December and provide USDA with export data to be released later Tuesday morning. At 8 a.m., Statistics Canada's Stocks of Principal Field Crops for December 31 will be out. Later Tuesday, Federal Reserve Chairman Jerome Powell speaks to the Economic Club of Washington and may offer more clues for what the Fed is planning. Trading in grains may turn quiet at some point as traders await USDA's WASDE report on Wednesday. Weather A storm system is forming along a boundary in eastern Texas on Tuesday, with increasing precipitation in the region throughout the day. Another system is passing through the Midwest and may bring some showers there, but most of the rest of the country will be rather dry and mild.
| Rural Advocate News | Monday February 6, 2023 |
FAO Food Price Index Continues to Decline The February FAO Food Price Index averaged 131.2 points in January 2023, down 1.1 points, or 0.8 percent, from December, marking the 10th consecutive monthly decline. With this latest decline, the index has fallen 28.6 points, 17.9 percent, from its peak in March 2022. The Cereal Price Index averaged 147.4 points in January, up fractionally from December and 6.7 points above its level one year ago. The Vegetable Oil Price Index averaged 140.4 points in January, down 2.9 percent month-on-month and nearly 25 percent below its level a year ago. The Dairy Price Index averaged 136.2 points in January, down 1.4 percent from December, hitting its lowest level in 12 months. The decline in January reflected lower international prices of butter and milk powders. The Meat Price Index averaged 113.6 points in January, down marginally in December, continuing the decline for the seventh consecutive month, but it still stood 1.3 percent above its year-earlier level. Finally, the Sugar Price Index averaged 115.8 points in January, down 1.1 percent from December. *********************************************************************************** Food Dollar’s Property Income Share Remained at Historic High in 2021 In 2021, the average dollar spent by U.S. consumers on domestically produced food returned 39.4 cents as property income. Property income is income received by owners of capital assets such as land, equipment, and intellectual property after they pay for inputs, labor, and output taxes. The 39.4 cents as property income marked a 0.3-cent increase from a revised 2020 estimate of 39.1 cents and the second year in a row in which property income's share of the food dollar set a record high for USDA Economic Research Service's Food Dollar Series. The share of the food dollar that compensates labor through salaries and benefits was 50.3 cents in 2021, a 1.2-cent decrease from 2020. The remaining food dollar shares were each at 5.1 cents for output taxes and imports, which include imported ingredients and other inputs needed for domestic food production. Annual shifts in the primary factor shares of the food dollar may occur for a variety of reasons, according to USDA. *********************************************************************************** USDA Announces Steps to Improve Child Health through Nutritious School Meals Agriculture Secretary Tom Vilsack Friday announced major initiatives that support and enhance the health of America's children through nutritious school meals. At the USDA Conversation on Healthy School Meals Roundtable, Vilsack says, “Our commitment to the school meal programs comes from a common goal we all share – keeping kids healthy and helping them reach their full potential.” USDA supports efforts to enhance the health and quality of life of America’s children by proposing gradual updates to science-based nutrition standards in school meals, recognizing school districts that have gone above and beyond in nutritional quality, and assisting small and rural school districts in improving the nutritional quality of school meals. Vilsack shared proposed updates to the school meal standards to reflect the latest nutrition science. These updates focus on a few targeted areas that will support even healthier meals for kids on a timeline that reflects critical input from school nutrition professionals, public health experts, industry, and parents. *********************************************************************************** House Ag Committee Announces Subcommittee Chairs House Agriculture Chairman Glenn GT Thompson recently announced subcommittee Chairs and jurisdictions for the 118th Congress. The Pennsylvania Republican says of the subcommittee chairs, “Their expertise and partnership are essential to fulfilling this Committee’s mandate of delivering certainty and prosperity to American agriculture and its entire value chain. Representative Austin Scott of Georgia will serve as the Vice Chair of the Full Committee, and chair of the General Farm Commodities, Risk Management, and Credit Subcommittee. California's Dough LaMalfa will chair the Subcommittee on Forestry, and Indiana's Jim Baird is chair of the Subcommittee on Conservation, Research, and Biotechnology. Meanwhile, Minnesota's Brad Finstad was appointed Chair of the Subcommittee on Nutrition, Foreign Agriculture, and Horticulture. Finally, Tracey Mann of Kansas was appointed chair of the Livestock Subcommittee, and South Dakota's Dusty Johnson is Chair of the Subcommittee on Commodity Markets, Digital Assets, and Rural Development. *********************************************************************************** Grassley, Fischer, Wyden, Tester Reintroduce Cattle Market Reform Bill Senator Chuck Grassley and a bipartisan group of Senators last week introduced the bipartisan Cattle Price Discovery and Transparency Act of 2023. Joining Grassley was fellow Republican Deb Fischer of Nebraska, and Democrats Ron Wyden of Oregon and Jon Tester of Montana. The lawmakers say the legislation would restore transparency and accountability in the cattle market by establishing regional cash minimums and equipping producers with more market information, including permanently authorizing a cattle contract library. Grassley says, "It's past time for Congress to stand with independent cattle producers and put an end to the cozy relationship between large meat packers and big cattle feedlots." The legislation requires the creation of 5-7 regions encompassing the entire continental U.S., and then establish minimum levels of fed cattle purchases made through an approved pricing mechanism. The bill would also establish a maximum penalty for covered packers of $90,000 for mandatory minimum violations. The legislation also creates a publicly available library of marketing contracts. *********************************************************************************** USDA Launches Rural Data Gateway USDA Rural Development Under Secretary Xochitl Torres Small Friday unveiled the Rural Data Gateway. The effort is a new resource to make the Department's data for rural projects easier to access for its partners and people living in rural communities. The Rural Data Gateway will help USDA better target resources to those who need them most in rural places. It also will help the Department be a stronger partner to rural people, entrepreneurs, government officials and other stakeholders. Torres Small says, “The Rural Data Gateway will highlight places where USDA has expanded access to capital for people in rural communities who need it most.” The Gateway also showcases USDA Rural Development’s investments that have helped rural people lower their energy costs, and buy, repair, build and rent affordable places to call home. The Rural Data Gateway supports USDA’s mission to expand public access to Federal government data as required by the Open, Public, Electronic, and Necessary Government Data Act of 2018.
| Rural Advocate News | Monday February 6, 2023 |
Top 5 Things to Watch - Key Happenings the Newsroom Is Tracking for the Week of Feb. 5-11 OMAHA (DTN) -- Here are the Top 5 things the DTN Newsroom is tracking for the week of Feb. 5. Watch for coverage of these and other topics throughout the week on our subscription platforms as well as on DTNPF.com. 1. February WASDE report: It's grain report week, and we'll have both a preview on Monday, Feb. 6, and then immediate reporting on the February World Agricultural Supply and Demand Estimates (WASDE). DTN Lead Analyst Todd Hultman's preview will be up Monday to kick off the week. We'll begin coverage of Wednesday's (Feb. 8) report around 11:00 a.m. CST, immediately after the report is released by USDA. As usual, we'll update our report story throughout the morning with additional analysis and details. Hultman's monthly WASDE Webinar begins at 12:30 p.m. 2. South American Crop: We're continuing to watch weather conditions and crop reports from South America, as those near-term updates will likely not be fully accounted for in the WASDE report. To keep up with DTN Ag Meteorologist John Baranick's global weather outlook, 3. Fertilizer continues to trend lower: We're now a month into the downtrend in fertilizer prices, especially most forms of nitrogen. DTN Staff Reporter Russ Quinn, who leads our fertilizer pricing and outlook coverage, reported this past week that overall nitrogen fertilizer cash prices were 9% lower than the previous month. Watch for the latest numbers Feb. 8. DTN paid subscribers can also find details on fertilizer prices in our fuels and fertilizers areas of our products. 4. River levels still a concern: Despite some precipitation across the Mississippi River valley, the heavy amounts stayed in the South and haven't lifted low water conditions in the nation's biggest water highway. Levels at St. Louis are still at -2 feet, or 2 feet below the "zero gauge" standard. Flood stage in St. Louis is +30 feet. The river level at Memphis has been around +14 feet; the flood stage there is +34 feet. 5. Cattle markets still chewing on herd size: While the week will be a quiet one for cattle reports, DTN Livestock Analyst ShayLe Stewart will continue to watch the market's response to the latest beef cow herd numbers being the lowest since records began more than 50 years ago. WASDE corn demand numbers will also be responding to those new herd size numbers.
| Rural Advocate News | Monday February 6, 2023 |
Monday Watch List Markets The U.S. Labor Department will release nonfarm payrolls for January and the monthly unemployment report at 7:30 a.m. CST, Friday's main attractions. Traders will watch over the latest weather forecasts and pause at 8 a.m. to see if USDA has an export sale announcement. Weather A burst of arctic air with the polar vortex continues in the Midwest where some lake-effect snows are occurring. A front is finally being pushed out of the Southeast where showers continue for the day. While eastern areas are getting colder, the Plains are getting warmer as a ridge of high pressure spreads eastward. The next system is moving into the West Coast, which will have implications east of the Rockies for next week.
| Rural Advocate News | Friday February 3, 2023 |
CattleFax Forecast for Producer Profitability in 2023 The CattleFax Outlook Seminar at the annual Cattle Industry Convention in New Orleans dug into expert market and weather analysis for the coming year. Prices and profitability will again favor cattle producers in 2023. The cattle industry came into the year with the smallest cattle supply since 2015, as drought caused the industry to dig deeper into the supply of feeder cattle and calves. While drought relief is up in the air, improvements are also expected to translate to moderating feed costs, especially in the second half of this year. Combined with increased cattle prices, producers, especially the cow-calf operators, will continue to see improvement in margins for the next several years. Kevin Good, Vice President of Industry Relations for CattleFax, says U.S. beef cow cattle inventories are down 1.5 million head from cycle highs. “Drought improvement and higher cattle prices should slow beef cow culling through this year,” Good says. *********************************************************************************** Brazil Reinstates Ethanol Import Tariff Brazil’s Foreign Trade Chamber reinstated the 18 percent import tariff on ethanol, making U.S. imports less price competitive in the country. The recent zero percent import tariff got put in place last year by Brazil’s former president to help fight rising inflation. The current administration let the zero percent tariff expire on February 1. SP Global says the 18 percent import tax will protect Brazil’s domestic ethanol producers, especially those in the north and northeast regions. Multiple sources say the move reduces competitively-priced ethanol imported from abroad. The Ministry of Agriculture and Livestock said in an official statement that the increased import tax will also have a minimal impact on the end-user in Brazil. Last year, Brazil imported 312 million liters of ethanol, and the U.S. supplied 65 percent of total ethanol imports. Brazil extended the current exemption for federal taxes on fuel for the first 60 days of 2023. *********************************************************************************** Study Finds Consumers Want Protein Source Transparency Merck Animal Health announced the results of its first-ever consumer transparency research study. It finds that two-thirds of consumers say transparency in animal protein is extremely or very important. The study focused on consumers’ growing interest in transparency and its importance in purchasing decisions and brand trust. Two-thirds of the survey respondents say transparency in animal proteins is extremely or very important and the reasons are personal, with health and nutrition topping that list. Also, 86 percent of consumers who said transparency is important also ranked traceability as extremely or very important, and 40 percent of those consumers want to know where the livestock comes from. More than 50 percent of the respondents said they were willing to pay a five percent premium for transparency on the label and want more information than ever about how their food is grown and raised to make informed decisions at the grocery store. *********************************************************************************** Legislation Designed to Protect U.S. Ag from Foreign Adversaries The bipartisan Promoting Agriculture Safeguards and Security (PASS) Act was introduced in both congressional chambers. It will protect U.S. national security by preventing foreign adversaries from taking any ownership or control of agricultural land and businesses in the United States. The bill will also ensure the USDA is fully involved in reviewing any acquisition of American companies by foreign adversaries that could affect the agricultural sector. Specifically, China, Russia, Iran, and North Korea are prohibited from buying agricultural land and companies in the U.S. It also adds the Ag Secretary as a standing member of the U.S. Committee on Foreign Investment. Congressman Rick Crawford, a co-sponsor, says, “Reports of entities ultimately controlled by the Chinese Communist Party buying American farmland and agricultural companies validate the need for a more proactive posture in protecting our agriculture sector from foreign threats.” Congressman Jim Costa says protecting the food supply is a national security issue. *********************************************************************************** NPPC Reacts to First Senate Ag Farm Bill Hearing The National Pork Producers Council applauded the first farm bill hearing in the 118th Congress. The organization is pleased the Senate Ag Committee is taking up issues important to the pork industry. In 2021, the U.S. exported 8.1 billion dollars worth of pork to more than 100 countries, which increased the average value of each pig marketed by nearly 63 dollars. Those exports also support more than 10,000 jobs in America. “Congress must provide strong investments in both the Market Access Program (MAP) and the Foreign Market Development Program,” the NPPC said in a statement. “A wide swath of U.S. agricultural companies have utilized these export promotion programs, generating a net return of almost 25 dollars for every dollar spent and creating 225,800 full-and-part-time jobs across the U.S. economy.” The NPPC is also looking forward to working with members of Congress while developing a farm bill that benefits producers and every American. *********************************************************************************** NCBA Picks the Beef Advocate of the Year Tucker Brown, a Texas beef producer, is the National Cattlemen’s Beef Association’s 2022 Advocate of the Year. The award recognizes Brown for his creative use of storytelling across social media platforms, along with continuing his family’s legacy as a sixth-generation cattle rancher. Brown says his farm gate is always open, and he doesn’t hesitate to answer hard questions about the beef industry. “Our goal is to help consumers understand where their food comes from and develop a deeper trust in us,” he says. Brown creates social media content that bridges the gap between consumers and producers, reaching millions of people. He has more than 176,000 followers on TikTok and 52,000 followers on Instagram. On average, Brown gets a combined five-to-six million views per month on his videos and uses his influence to show what it’s like to raise beef. “I think it’s more important than ever to tell our story,” he says.
| Rural Advocate News | Friday February 3, 2023 |
Friday Watch List Markets The U.S. Labor Department will release nonfarm payrolls for January and the monthly unemployment report at 7:30 a.m. CST, Friday's main attractions. Traders will watch over the latest weather forecasts and pause at 8 a.m. to see if USDA has an export sale announcement. Weather A burst of arctic air with the polar vortex continues in the Midwest where some lake-effect snows are occurring. A front is finally being pushed out of the Southeast where showers continue for the day. While eastern areas are getting colder, the Plains are getting warmer as a ridge of high pressure spreads eastward. The next system is moving into the West Coast, which will have implications east of the Rockies for next week.
| Rural Advocate News | Thursday February 2, 2023 |
NCGA Shares Potential Consequences of Mexican Corn Ban Corn growers told Congressional members and their staffs they must hold the line over Mexico’s proposed ban on imports of GMO corn. During a congressional briefing, members of the National Corn Growers Association said if that ban takes effect, it will block most U.S. corn imports into Mexico and be a significant blow to the American economy. Mexico’s president plans to implement a decree banning biotech corn from coming into Mexico in early 2024. The vast majority of U.S. corn is biotech. “This decree would cut most American growers off from what has historically been our largest export market,” says NCGA President Tom Haag (Hayg). “That’s why U.S. officials must continue to ensure that Mexico lives up to its commitments under the U.S.-Mexico-Canada Agreement.” NCGA hosted the congressional briefing on the one-year mark from the decree’s effective date. The ban would cause the U.S. economy to lose $73.8 billion over ten years. *********************************************************************************** Senate Bill Would Improve the Conservation Reserve Program Senators John Thune of South Dakota and Minnesota’s Amy Klobuchar reintroduced the Conservation Reserve Program Improvement Act. A Republican and Democrat, respectively, the bill bolsters the CRP by improving access to grazing, maximizing enrollment options for producers, and addressing implementation issues following the 2018 Farm Bill. “After hearing from South Dakotans, it’s clear that we need to keep working to ensure that CRP continues to be an effective option for producers and landowners,” Thune says. Among the improvements, the bill would increase the CRP annual payment limitation from $50,000, established in 1985, to $125,000 to account for inflationary and rising land value pressures and provide more enrollment options. “The Conservation Reserve Program helps equip our farmers with tools to conserve and improve soil, water quality, and wildlife habitat,” Klobuchar says. “This bipartisan legislation makes commonsense improvements to the CRP that will strengthen conservation practices and boost enrollment in this vital program. *********************************************************************************** New Venture to Develop SAS Using Ethanol United Airlines formed a joint venture to develop and then commercialize a Sustainable Aviation Fuel technology using ethanol as the feedstock. United Airlines, Tallgrass, and Green Plains will invest up to a combined $50 million in the venture. The venture is called Blue Blade Technology and will produce up to 135 million gallons of ethanol-based SAS annually. Green Car Congress Dot Com says if the technology is successful, Blue Blade will begin building a pilot facility in 2024, followed by a full-scale facility that could begin operating in 2028. The agreement could provide enough sustainable aviation fuel to fly more than 50,000 flights every year between United’s hub airports in Chicago and Denver. If the technology is commercialized, the location of Blue Blade’s first plant would allow easier access to low-carbon feedstock from Green Plains’ Midwest ethanol production facilities. The technology will eventually work with any alcohol-based feedstock as a fuel source. *********************************************************************************** Report Shows Strong Demand Continuing for U.S. Beef The National Cattlemen’s Beef Association released its “Today’s Beef Consumer” report, and it shows beef demand continues to remain strong. Despite various challenges faced by the industry, consumers have repeatedly stated that they will continue buying beef in both the retail and foodservice settings. Compiling research from last year, the report shows more than two-thirds of consumers reportedly eat beef on a weekly basis or even more than that. Inflation is top-of-mind when shopping for food, and more than three-quarters of consumers reported an increase in the price of food, whether at retail or foodservice. While it was no surprise that beef sales at foodservice dropped sharply in 2020 and 2021, sales in 2022 rebounded in both volume and dollars, surpassing the pre-pandemic levels of 2019. During COVID, consumers were forced to cook from home, and many continue to do so as a way to stretch dollars and combat inflation. *********************************************************************************** NCBA Announces Policy Priorities The National Cattlemen’s Beef Association released its policy priorities for 2023. The priorities focus on advancing animal disease preparedness, protecting voluntary conservation programs, and defending producers from regulatory overreach. “Our focus is helping to create opportunity for America’s cattle producers and fighting to make sure the federal government does not damage our industry,” says NCBA President-Elect Todd Wilkinson. “One of the biggest opportunities to help cattle producers in the coming year is passing the 2023 Farm Bill with continued investment in our national vaccine bank to protect the U.S. cattle herd.” Other priorities include protecting and funding EQIP, CSP, and other voluntary conservation programs that incentivize science-based, active management of natural resources. NCBA also wants to protect the cattle industry from regulatory attacks under the Waters of the United States, the Endangered Species Act, emissions reporting, and more. “We’re laser-focused on reducing the risk of a potential foreign animal disease,” Wilkinson adds. *********************************************************************************** Americans Will Eat 1.45 Billion Chicken Wings During the Super Bowl The National Chicken Council released its annual Chicken Wing Report, projecting Americans will eat a record-breaking 1.45 billion chicken wings during Super Bowl weekend. The figure represents an increase of two percent from last year’s report, the equivalent of 84 million more wings than in 2022. NCC Spokesperson Tom Super says, “The two main reasons for the increase are more favorable prices and more people getting back to normal and gathering for the Big Game, whether at home or a bar or restaurant.” Despite inflation, both wholesale and retail wing prices are down double digits from a year ago, according to USDA, and consumers are seeing a lot more features and promotions. That many wings laid end-to-end would stretch from Arrowhead Stadium in Kansas City to Lincoln Financial Field in Philadelphia about 62 times. It would also give four wings each to every man, woman, and child in the United States.
| Rural Advocate News | Thursday February 2, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, a report on fourth-quarter U.S. productivity and an update of the U.S. Drought Monitor. The U.S. Energy Department's natural gas storage report is at 9:30 a.m. Traders remain interested in the latest weather reports, especially from South America and in any news of an export sale. Weather A stalled front continues to be active across the south with rounds of showers on Thursday. It is still cold enough for a mix of freezing rain, sleet, and some snow in these areas. Across the north, the last arctic cold blast is moving into the North-Central U.S. The cold will be intense but only for a day or so. The cold will slide over to the Northeast tonight and cold air over the Great Lakes will induce lake-effect snows. Those should be as brief as the cold air that moves through.
| Rural Advocate News | Wednesday February 1, 2023 |
USTR Announces Dispute Settlement Panel Request with Canada U.S. Trade Representative Katherine Tai Tuesday announced the second dispute settlement panel under the U.S.-Mexico-Canada Agreement regarding Canada’s dairy tariff-rate quota allocation measures. The United States is challenging Canada’s revised dairy TRQ allocation measures that use a market-share approach for determining TRQ allocations. Through these measures, Canada undermines the market access it agreed to provide in the USMCA, according to USTR. Ambassador Tai says, “Although the United States won a previous USMCA dispute on Canada’s dairy TRQ allocation policies, the Canadian government’s revised measures have not fixed the problem.” National Milk Producers Federation president and CEO Jim Mulhern responded, "USTR's action is an important step in righting this wrong and sending a message that the U.S. will fight violations of trade deals in Canada and wherever else they may be committed." If the panel confirms that Canada has violated its obligations under USMCA, the U.S. would be granted the right to impose retaliatory duties. *********************************************************************************** USDA Launches Pilot Cattle Contracts Library The Department of Agriculture Tuesday launched the Cattle Contract Library pilot program. USDA says the pilot library will provide new disclosure to the industry and public regarding the key terms, conditions, and volumes under which cattle are contracted. The Consolidated Appropriations Act of 2022 directed USDA to create a pilot library to increase market transparency for cattle producers. The library will have the same look and feel as the working library model developed and shared with stakeholders last year but will now be populated with information from active contracts. The initial release of the library will allow users to browse a range of terms and information contained in active contracts used to purchase fed cattle. National Cattlemen's Beef Association Government Affairs Government Affairs Tanner Beymer responded, “We have been looking forward to the launch of the Cattle Contract Library pilot program and will review the product to determine if its current format provides value to cattle producers.” *********************************************************************************** FDA Proposes Redesign of Human Foods Program The Food and Drug Administration Tuesday proposed a redesign of the Human Foods Program to enhance coordinated prevention and response activities. The proposal includes a transformative vision for the Office of Regulatory Affairs, FDA's field-based operations. The proposed structures for both groups will have clear priorities focused on protecting and promoting a safe, nutritious U.S. food supply that more quickly adapts to an ever-changing and evolving environment, according to USDA. The proposed structures for both groups will have clear priorities focused on protecting and promoting a safe, nutritious U.S. food supply that more quickly adapts to an ever-changing and evolving environment. Creating a Human Foods Program under a single leader who reports directly to the Commissioner unifies and elevates the program while removing redundancies. The Center for Food Safety and Applied Nutrition, Office of Food Policy and Response, and certain functions of ORA will be unified into a newly envisioned organization called the Human Foods Program. *********************************************************************************** Ukraine’s Exports Recover Under Black Sea Grain Initiative USDA's Economic Research Service reports Ukraine's corn and wheat exports have almost returned to seasonal-average levels since the summer of 2022. The change follows the Black Sea Grain Initiative to reopen the Black Sea shipping routes. Russia's invasion of Ukraine in February 2022 led to elevated security risks and infrastructure damage, causing Ukraine's seaports to be almost completely cut off from March through July. As global exportable supplies diminished, international wheat export prices spiked. Signed in July 2022, the Black Sea agreement enabled the safe passage of Ukraine grain exports through three ports. That and ample corn and wheat stocks allowed Ukraine to export a larger combined volume of the two crops than the five-year average in September and October. The Black Sea Grain Initiative has increased the opportunities for Ukrainian grain to leave the country and has relieved some price pressures internationally, but uncertainty remains as the agreement is set to expire in mid-March 2023 and may not be extended. *********************************************************************************** Six of Seven States Agree on Colorado Water Management Six states that rely on water from the Colorado River Basin recently reached an agreement regarding a model to drastically cut water use in the basin. Colorado, New Mexico, Utah, Wyoming, Arizona, and Nevada, "did exactly what we needed," according to Colorado Senator Michael Bennet. However, the agreement doesn't include California, the largest water user from the basin, which plans to release its own water use plan. In a letter to the Bureau of Reclamation, the six states admitted, "Over the past twenty-plus years, there is simply far less water flowing into the Colorado River system than the amount that leaves it, and that we have effectively run out of storage to deplete.” The states asked the Bureau of Reclamation to review their proposal as it seeks drought mitigation guidelines. Bennet says California not joining the effort was disappointing, adding, “For too long, the other six states, and particularly the Upper Basin, have carried the burden of this historic drought.” *********************************************************************************** Commodity Classic Registration up 28% Farmers across the country are getting excited for the 2023 Commodity Classic, which has just announced registration is up 28 percent over last year's event in New Orleans. The 2023 Commodity Classic will be held March 9-11 in Orlando. Attendee surveys indicate that networking with other farmers is one of the top reasons producers enjoy Commodity Classic. Hallway conversations and in-person connections are an important part of the educational experience at Commodity Classic, as farmers share their knowledge, passion, and insight with colleagues from across the nation. 2023 Commodity Classic co-chair George Goblish of Minnesota says, “Thousands of America’s best farmers from across the nation love Commodity Classic because we share a passion for agriculture, a thirst for knowledge, and we’re all interested in how we can make our farms more profitable.” The 2023 Commodity Classic includes a lineup of educational sessions, inspiring speakers, a trade show, entertainment, and a range of technology, innovation, and agronomic information. Discover more at CommodityClassic.com.
| Rural Advocate News | Wednesday February 1, 2023 |
Wednesday Watch List Markets Wednesday is the first of February, the day the ground hog is expected to come out and raise the federal funds rate by another quarter-percent. The Federal Reserve will make the ceremony official at 1 p.m. CST. Before that, there will be several manufacturing indices reported from around the world and the U.S. will get its turn at 9 a.m. At 9:30 a.m., the U.S. Energy Department releases its weekly report of energy inventories, including ethanol production. South American weather and crop conditions continue to get a lot of trader attention. Weather A stalled front across the South and Southeast remains active on Wednesday with periods of showers from Texas and Oklahoma eastward. It remains cold enough on the northern end for a mix of freezing rain, sleet, and maybe some snow from Texas and Oklahoma into the Tennessee Valley. Temperatures farther north are still cold, but higher than yesterday for most areas.
| Rural Advocate News | Tuesday January 31, 2023 |
Senate Ag Leaders Urge USTR to Hold Canada Accountable Under USMCA Leaders of the Senate Agriculture Committee urge the U.S. Trade Representative to hold Canada accountable under the U.S.-Mexico-Canada Agreement. Senators Debbie Stabenow, a Michigan Democrat, and John Boozman, an Arkansas Republican, say Canada is obligated by USMCA to provide market access to American dairy farmers. Despite numerous rounds of consultation and an initial dispute settlement panel ruling in January 2022, Canada continues to reserve parts of its tariff-rate quota allocations for domestic processors, undermining importers' market access. In a letter to Ambassador Katherine Tai, the Senators call on USTR to initiate a second dispute settlement panel to hold Canada accountable to its market access obligations to American dairy farmers. There has been no improvement in Canada's TRQ administration despite the USTR’s continued engagement. The Senators write, “To bring Canada into compliance with its commitments to U.S. dairy producers, we urge USTR to move forward with a second dispute settlement case to implement USMCA’s dairy provisions fully and properly to increase U.S. dairy market access.” *********************************************************************************** 2022 Census of Agriculture Deadline Nears The deadline to respond to the 2022 Census of Agriculture is next week. USDA's National Agri Statistics Service says farmers and ranchers must respond by February 6 online or through the mail. NASS Administrator Hubert Hamer says, "By participating in the 2022 Census of Agriculture, producers show the value and importance of American agriculture." Last month, NASS mailed the Census of Agriculture questionnaires to every known ag producer in the U.S. and Puerto Rico. Conducted just once every five years, the ag census provides a complete account of the nation's farms and ranches and the people who operate them. Responding to the Census of Agriculture is required by federal law, and law requires NASS to keep all individual operations' information confidential, use the data for statistical purposes only, and publish the data in aggregate form to prevent disclosing the identity of any individual producer or farm operation. Producers can respond online at agcounts.usda.gov. *********************************************************************************** USDA Announces $2.7 Billion in Rural Electric Infrastructure Funding Agriculture Secretary Tom Vilsack Monday announced a $2.7 billion investment to help 64 electric cooperatives and utilities. The funding from the Department of Agriculture will help the cooperatives expand and modernize the nation’s rural electric grid and increase grid security. Vilsack says, “This funding will help rural cooperatives and utilities invest in changes that make our energy more efficient, more reliable, and more affordable.” The loans include $613 million to help rural utilities and cooperatives install and upgrade smart grid technologies. Smart grid can be a catalyst for broadband and other telecommunications services in unserved and underserved rural areas, in addition to improving grid security and reliability. Nearly half of the awards will help finance infrastructure improvements in underserved communities. USDA's Electric Loan Program can help finance wind, solar and natural gas plants, as well as improvements to produce cleaner energy from coal-fired plants. In the coming months, USDA will announce additional energy infrastructure financing. *********************************************************************************** State Attorneys General Seek Year-Round E-15 Last week, Iowa Attorney General Brenna Bird led a bipartisan coalition of seven Attorneys General urging the Biden Administration to follow the law and allow the sale of year-round E-15. Federal law permits Governors to request that the EPA issue the regulations allowing E15 and requires the EPA to issue the regulations within 90 days. The sale of E15 has been restricted during the summer peak-driving months due to an outdated provision of the Clean Air Act. Iowa Governor Kim Reynolds led a bipartisan coalition of Governors making the request on April 22, 2022, but the EPA still has not issued the regulation as required by law. Earlier this month, Governor Reynolds, again wrote to the Biden Administration reiterating her request that the mandatory regulations be issued in response to their request. Attorney General Bird and the Attorneys General of Illinois, Minnesota, Missouri, Nebraska, South Dakota, and Wisconsin signed the letter to the White House and the Environmental Protection Agency. *********************************************************************************** American Dairy Coalition Sets 2023 Policy Priorities American Dairy Coalition, a grassroots dairy farmer-led organization with diverse geographic representation, recently announced federal policy priorities and an action plan for 2023. American Dairy Coalition CEO Laurie Fischer says, “Our ongoing efforts have been focused on raising awareness of short- and long-term challenges.” One key short-term priority is to see the Class I milk price 'mover' returned to its previous 'higher of' formula in the 2023 Farm Bill. For the long-term, the coalition seeks a national Farm Bill hearing on the sustainability of Federal Milk Marketing Orders. Fischer says, “The systemic issues of declining fluid milk sales and declining FMMO participation create instability and uncertainty for dairy farmers.” ADC also supports restoring whole milk in federal nutrition programs like National School Lunch and Breakfast Programs and WIC. This includes exempting nutrient-dense foods like whole milk from the fat limits the Dietary Guidelines impose on nutrition programs and dairy checkoff promotions. *********************************************************************************** Rotational Grazing Adoption Varies by Region Data published Monday by USDA’s Economic Research Service shows rotational grazing adoption varies by region. Rotational grazing is a management practice in which livestock are cycled through multiple fenced grazing areas to manage forage production, forage quality, animal health, and environmental quality. In a recent study, USDA researchers found the highest rate of total rotational grazing adoption, at 49 percent of operations, in the Northern Plains and Western Corn Belt region. The lowest participation level, at 25 percent, were operations in the Southern Plains region. Basic rotational grazing was more common than intensive rotational grazing in all but one region. USDA says the exception was the Appalachian region, where 25 percent of cow-calf operations used intensive rotational grazing, and 22 percent used basic rotational grazing. Major drivers for regional differences in adoption could include varying forage types, which may respond better to rotational grazing than others, and differing climates.
| Rural Advocate News | Tuesday January 31, 2023 |
Tuesday Watch List Markets At 7:30 a.m. CST Tuesday, the U.S. Labor Department will release its employment cost index for the fourth quarter, a factor for the Fed to consider in this week's meeting. At 9 a.m., the Conference Board's index of U.S. consumer confidence will be out, followed by USDA's Jan. 1 cattle inventory at 2 p.m., anticipating a 3% or 4% annual decline. Weather A sharp cold front remains across the southern states on Tuesday, which will continue to be active. Showers are already moving through this morning and more will develop later today from Texas and Oklahoma eastward to Virginia and points south. Behind the front it is very cold with another day of well below-normal temperatures. The cold will cause another day of freezing rain, snow, and sleet accumulation in some areas of the South-Central states.
| Rural Advocate News | Monday January 30, 2023 |
Senators Ask White House for Enforcement Actions on USMCA The top members of the Senate’s Finance Committee sent a letter to the White House asking the administration to pursue enforcement action against Canada and Mexico under the USMCA. Inside Trade says they’re concerned about areas where Canada and Mexico aren’t complying with the agreement’s rules, especially around energy and agriculture. Ron Wyden and Mike Crapo (CRAY-po), the top Democrat and Republican on the committee, sent the letter saying, “The Office of the USTR must continue pursuing full implementation and, where necessary, robust enforcement of the U.S.-Mexico-Canada Agreement.” They also noted that the pact’s full potential remains unrealized. Wyden and Crapo highlighted the current dispute with Mexico over its policy regarding GMO corn imports, as well as Canadian failure to comply with the rules regarding tariff-rate quotas on dairy products. The U.S. recently requested dispute-settlement consultations for a third time regarding Canada’s dairy policy. U.S. and Mexican discussions recently continued last week. *********************************************************************************** Reaction to Bronaugh’s Decision to Step Down from USDA Post USDA Deputy Secretary Jewell Bronaugh announced she’ll be leaving her post at the end of February. American Farm Bureau Federation President Zippy Duvall says his organization has enjoyed working with the deputy secretary for the last two years of her tenure with the agency. “We want to thank her for her service to America’s farmers and ranchers,” Duvall says. “She has long been someone who understands the needs of farmers and rural communities. We’ve appreciated her leadership and wish her all the best in her future endeavors.” House Ag Committee Ranking Democrat David Scott congratulated Bronaugh on a job well done. “Deputy Secretary Bronaugh’s time at the department was historic, serving as the first African American woman in the role,” Scott says. “During her time as Deputy, she uplifted American agriculture and our rural communities, something she’s long done throughout her career.” Scott also says she’s a champion for U.S. food and agriculture. *********************************************************************************** Organic Produce Sales Up Three Percent, Volume Down Four Percent Organic fresh produce sales grew by three percent last year while total volume dropped by 3.7 percent. The Organic Produce Network says total sales topped $9.4 billion for the year. The 2022 Organic Produce Performance Report says the fresh berry category was the top organic produce category with more than 16 percent of organic fresh produce dollars in 2022. Fresh berry sales topped $1.6 billion for the year, with organic packed salads a close second at $1.55 billion. Total fresh produce sales gained 7.3 percent in dollars during the year but dropped 1.3 percent in volume from the prior year. During 2022, 13 of the top 20 organic produce categories by total sales posted increases in dollars, with organic onions generating the largest increase at 15.4 percent. That increase was followed by cucumbers, potatoes, and avocados. Organic performance in 2022 was consistent across the nation as dollars grew and volume declined. *********************************************************************************** Energy Department Allocates $118 Million to Biofuel Projects Late last week, the Department of Energy announced $118 million in funding to help expand U.S. biofuel production. Growth Energy CEO Emily Skor says the funds will undoubtedly accelerate the innovations taking place at U.S. ethanol plants. “It will open many new opportunities for low-cost, low-carbon energy,” Skor says. She also points out that the president himself has said there will be no achieving the goal of net zero by 2050 without biofuels, and the announcement shows that the DOE is committed to that mission. “We are excited to see new technologies scaled up with these funds, particularly the work underway at Marquis, Inc., a Growth Energy member that received $8 million for a project that combines CO2 with low-carbon hydrogen to create a new production stream of extra-low-carbon ethanol.” A project like that will end up slashing carbon emissions by at least 70 percent or more compared to petroleum-based alternatives. *********************************************************************************** U.S. Wants WTO Dispute System Fixed by 2024 The U.S. is currently in a third round of talks to redo the World Trade Organization’s trade dispute arbitration system. The U.S. Ambassador to the WTO told Reuters that America wants it to be fully up and running by the end of 2024. The WTO’s appeals bench rules on top disputes among nations. It’s been out of service for two years due to U.S. appointment blockages put in place during the Trump Administration. The current administration has resisted calls by WTO members to approve the appointments and has been leading the negotiations on how to redo the dispute system. Asked if it was even possible to revive the Appellate Body, Deputy U.S. Trade Representative Maria Pagan didn’t say no. “It needs a lot of revamping,” she says. The U.S. has criticized the WTO’s alleged overreach and lengthy processes, and it strongly contested some of the WTO’s recent rulings against America. *********************************************************************************** Corn Sales to Overseas Buyers Drops 20 Percent The U.S. Department of Agriculture says export sales of corn fell in the seven days that ended on January 19, while soybean and wheat sales improved. During the week, corn sales to overseas buyers totaled 910,400 metric tons, a 20 percent drop week-to-week but up 46 percent over the prior four-week average. Mexico was the biggest buyer at 407,000 metric tons, followed by Columbia. Exports for the week came in at 912,000 metric tons, up 28 percent from the previous week. Soybean sales rose 16 percent week-to-week and 53 percent from the average to 1.15 million metric tons. China bought more than 940,000 metric tons, with the Netherlands a distant second at 67,100 tons. Exports for the week hit 1.9 million metric tons, down eight percent from the previous week. Wheat sales were up six percent over the prior week and 84 percent from the previous four-week average. Exports dropped 15 percent.
| Rural Advocate News | Monday January 30, 2023 |
Monday Watch List Markets Back from the weekend, traders will be paying close attention to South America's weather reports and forecasts and any outside news that might have occurred. There will also be interest in how cold temperatures got in the southwestern Plains. USDA's weekly report on export inspections is due out at 10 a.m. CST. Traders are also aware the Fed is expected to raise the federal funds target by 0.25% on Wednesday. Weather Very cold air in association with an arm of the polar vortex continues to settle into much of the Plains and western half of the Midwest Monday. The cold threatens livestock and any exposed wheat. The front is hung up from Texas to the Ohio Valley and periods of showers will develop along and behind the front over the next few days as it slowly sinks farther southeast this week. That will induce some wintry mix of freezing rain and snow across the Southern Plains up into the eastern Midwest over the next 24 hours.
| Rural Advocate News | Friday January 27, 2023 |
Agriculture Deputy Secretary Jewel Bronaugh to Step Down Agriculture Deputy Secretary Jewel Bronaugh announced Thursday her intention to step away from her role at USDA. Bronaugh says, “It is with mixed emotions that today I am announcing that I will step away from my role as Deputy Secretary in the coming weeks so I can spend more time with my family.” President Biden nominated Bronaugh to USDA in January of 2021 and was confirmed by the Senate in May of that year. Bronaugh, in 2018 was appointed as the Virginia Department of Agriculture and Consumer Services Commissioner. She previously served as the Virginia State Executive Director for the USDA Farm Service Agency during the Obama administration. She was the first Black woman to hold the second-in-command position at USDA. Bronaugh thanked Secretary Tom Vilsack for his support, adding, “I now look forward to taking some time off to spend more quality time with my mom, husband and four children." *********************************************************************************** Retail Food Price Inflation in 2022 Surpassed 2021 Rates Food-at-home prices increased by 11.4 percent in 2022, more than three times the rate in 2021 of 3.5 percent, according to USDA’s Economic Research Service. The increase was also much faster than the two percent historical annual average from 2002 to 2021. All food categories except beef and veal grew faster in 2022 than in 2021. In 2022, price increases surpassed ten percent for food at home and for nine food categories. Egg prices grew at the fastest rate ,2.2 percent, after an outbreak of highly pathogenic avian influenza throughout 2022. Prices for fats and oils increased by 18.5 percent, largely because of higher dairy and oilseed prices. Prices also rose for poultry, 14.6 percent, and other meats, 14.2 percent. Elevated prices for wholesale flour and eggs contributed to a 13.0-percent price increase for cereals and bakery products. Prices for beef and veal, fresh vegetables and fresh fruits rose more slowly, but all categories exceeded their historical averages. *********************************************************************************** Report: Brazil Soybean Crop up 18% From Last Year Industry Economists expect the harvest of a large soybean crop in Brazil in the next 30 to 45 days. AgResource predicts USDA and others will be forced to raise Brazilian soybean production estimates by one million to three million tons, or 37 million to 110 million bushels. A crop of at least 150 million tons versus 129.5 million last year is guaranteed, according to their research. AgResource's final yield estimate in Mato Grosso, by far the country's largest producing state, is 60.3 bushels per acre after revisiting possible harvest losses and disease pressure. This is eight bushels per acre more than Brazil’s CONAB current forecast. There will be yield loss in the far south of Brazil, but yield gains in Mato Grosso and surrounding states will more than offset any yield hit. Harvest losses will likely result from new incurable diseases. But there is very little doubt a massive Brazilian soybean crop will be available to the global marketplace in the coming weeks. *********************************************************************************** Research Identifies $400 Million in Unrealized Soybean Value A new partnership aims to increase soybean flower and pod retention. This unrealized value could bring $50 per acre or $400 million in economic return for U.S. soybean farmers, according to the United Soybean Board. The collaborative focus will test how heat and drought impact flower bud retention. Flower production dictates the final pod number and, ultimately, yield in soybeans. The Atlantic Soybean Council, Mid-South Soybean Board, North Central Soybean Research Program, Southern Soybean Research Program and United Soybean Board all agree this is a priority issue impacting the entire industry. Although flower retention is a leading cause of soybean yield loss in the U.S., no organized effort exists to address it. Farmers experience about 30 percent of flower loss under favorable conditions and up to 80 percent under drought and heat stress. Texas Tech University, in collaboration with Kansas State University, the University of Missouri and the University of Tennessee, will lead the research on this national effort. *********************************************************************************** First All-Steel Swine Barns to Provide Improved Efficiency and Animal Health A new sow complex is now under construction featuring the first prefabricated steel swine barns in the United States. Compared to traditional wood structures, the steel buildings are designed to offer a more biosecure, flame-retardant and energy-efficient environment for pigs, while also being more durable and faster to build. The 12,000-head sow facility is scheduled for completion this summer in South Dakota. The steel building package, designed by C-Lines, is being provided by AP, AGCO’s swine equipment brand. AP dealer Ag Property Solutions is constructing the barns, which will be managed by Pipestone Management. The all-steel buildings offer increased construction speed and efficiency, increased building strength, energy efficiency, better biosecurity, along with being easily transported as a prefabricated structure. The new facility is the largest sow complex ever constructed by Ag Property Solutions, with a footprint of up to 55 acres. It includes a 187,500-square-foot farrowing barn and gilt developer unit and a 225,000-square-foot gestation barn that incorporate the steel panels. *********************************************************************************** FFA to Participate in the Advancing Racial Equity Community of Practice Initiative The National FFA Organization Thursday announced its participation in a new community of practice with other nonprofit organizations focused on advancing racial equity. Over the next six months, leaders in the National FFA Organization will work with The Bridgespan Group to strengthen their approach to advancing racial equity internally and externally. The Advancing Racial Equity Community of Practice, led by The Bridgespan Group, is funded by the Walmart Foundation. The funding will assist in supporting FFA to collaborate with others to share best practices and learnings on their work to prioritize equity. National FFA CEO Scott Stump says, “By partnering with other nonprofits through this initiative, we can expand our capacity to seek and promote inclusion and diversity in our membership.” FFA is participating in the cohort alongside nine organizations: American Red Cross, Center for the Future of Arizona, Education Design Lab, Goodwill Industries International, National Voluntary Organizations Active in Disaster, Team Rubicon, The Recycling Partnership, Winrock International, and World Wildlife Fund.
| Rural Advocate News | Friday January 27, 2023 |
Friday Watch List Markets The U.S. index of personal consumption expenditures will be out at 7:30 a.m. CST Friday, an indicator of inflation watched by the Fed. The University of Michigan's index of consumer sentiment follows at 9 a.m. Traders will continue to watch the latest weather forecasts, especially in South America. Weather A clipper system moving through the Upper Midwest is dragging a cold front through the North-Central U.S. Friday. Breezy winds continue near the storm center in the Upper Midwest. Cold air over Canada will gradually fill in behind the front later in the day, resulting in well-below normal temperatures for the weekend. In addition to the cold, the front will be bringing scattered snows, some of which may be heavier near the northern Rockies and also near the South Dakota-Nebraska border through Friday night.
| Rural Advocate News | Thursday January 26, 2023 |
Senate Ag Plans Hearings on Farm Bill Trade and Horticulture Titles The leadership of the Senate Agriculture Committee Wednesday announced a set of farm bill hearings. Senators Debbie Stabenow and John Boozman will hold the first hearing on February 1, titled. "Farm Bill 2023: Trade and Horticulture." The hearings will focus on the trade and horticulture titles of the farm bill. The first hearing will include testimony from USDA's Alexis Taylor, Jenny Lester Moffitt, and USAID's Sarah Charles. In a joint statement, Stabenow and Boozman say, "This is the first of many hearings the Committee has planned as we gear up for the 2023 Farm Bill," adding, "We are both looking forward to a collaborative process, working with all Senators to deliver a strong Farm Bill." The duo announced three other upcoming hearings: February 9 on Commodity Programs, Crop Insurance and Credit, February 16 on Nutrition Programs, and March 1 on Conservation and Forestry Programs. All hearings will be held in the committee’s hearing room. *********************************************************************************** Lawsuit Against FDA Targets Antibiotics Use in Livestock Public health advocacy groups filed a lawsuit against the Food and Drug Administration this week. The groups say the lawsuit challenges the refusal to phase out unnecessary uses of antibiotics in animal agriculture. The groups include the Alliance of Nurses for Healthy Environments, the Natural Resources Defense Council, Food Animal Concerns Trust, Public Citizen and Earthjustice. They allege that approximately two-thirds of medically important antibiotics sold in the U.S. are for use in food-producing animals and are often administered to healthy animals to compensate for the higher risk of infections typically caused by cramped, unsanitary or stressful conditions. The lawsuit claims that the misuse of these medicines has contributed to the rise and spread of antibiotic-resistant bacteria. Steven Roach of Food Animal Concerns Trust says, "The FDA has allowed giant meat companies to habitually overuse antibiotics putting everyone's health at risk," adding, "This is absolutely unnecessary as animals raised under healthy conditions do not need routine antibiotics." *********************************************************************************** Substantial Consolidation in Retail Food Market Since 1990 The U.S. food retail sector experienced substantial consolidation over the last three decades, according to data from USDA’s Economic Research Service. Market concentration, as measured by the Herfindahl-Hirschman Index, is a measure of the extent to which market shares are concentrated between firms of the retail food sector at the national, state, metropolitan statistical area, and county levels. The analysis includes all establishments with a significant portion of food sales that are likely substitutes for each other: supermarkets and other grocery and warehouse clubs and supercenters. Although the national market is less concentrated than the average State level, according to the HHI, national market concentration increased substantially between 1990 and 2019 at 458 percent. In comparison, average county-level market concentration has remained relatively constant over the past 30 years, increasing only 94 percent. While national measures provide information about larger trends, trends in localized markets are likely more relevant for consumers, food-retail competitors, and policymakers, according to USDA. *********************************************************************************** Organic Farmers Association Applauds Additional Assistance for Dairy Farmers The Organic Farmers Association welcomes this week's announcement of emergency financial relief to organic dairy farmers by the Department of Agriculture. The association has called on lawmakers and the Biden administration to help offset the high cost of production. USDA's Farm Service Agency fulfilled the mandate on time, announcing plans to distribute funding on Monday, January 23. The newly announced Organic Dairy Marketing Assistance Program will be administered by USDA's Farm Service Agency and will cover up to 75 percent of projected 2023 marketing costs for eligible organic dairy producers - targeting small and mid-sized operations. Organic Farmers Association Executive Director Kate Mendenhall says, "We applaud Congress for prioritizing family farms in crisis and prioritizing this emergency relief." New York organic dairy farmer Liz Bawden adds, "Organic dairies have had a very difficult two years, and this relief funding will hopefully make it to dairies in time to keep them in business." *********************************************************************************** World Food Prize Names Branstad as President The World Food Prize Foundation announces this week that former U.S. Ambassador to China Terry Branstad will join the organization as its President. World Food Prize Foundation Chair Paul Schickler says, "We are excited to bring on a leader with both global vision and strong roots in agriculture.” Branstad was Iowa's longest-serving governor and holds the record as the longest-serving governor in the history of the United States. He held the office of Governor of Iowa from 1983 until 1999, and then again from 2011 until 2017, when he was appointed U.S. Ambassador to China. He is a partner with the Branstad Churchill Group, LLC. The World Food Prize is presented each year in Iowa to an individual for their achievements in improving the quality, quantity, and availability of food in the world. The $250,000 award is presented each October in a ceremony at the Iowa State Capitol that attracts global leaders and participants. *********************************************************************************** Consumer Brands Association Supports New Trucking Legislation The Consumer Brands Association endorsed a new, bipartisan bill, this week. The Safer Highways and Increased Performance for Interstate Trucking Act, or "SHIP IT Act," would boost trucking capacity, improve supply chain efficiency and keep costs down for consumers. The SHIP IT Act was introduced by U.S. Representatives Dusty Johnson, a South Dakota Republican, and Jim Costa, a California Democrat. The legislation aims to address supply chain pinch points by increasing shipping capacity, lessening burdens on truck drivers and providing incentives to recruit and retain new drivers. The bill also modernizes the emergency use of certain vehicle waivers, offers workforce grants for truck drivers, simplifies the commercial driver's license process and tackles truck parking concerns. Consumer Brands vice president of supply chain Tom Madrecki says, “Ultimately, each step to enhance our supply chains with the latest tools and technologies available will ensure operations run as seamlessly as possible despite future disruptions.”
| Rural Advocate News | Thursday January 26, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST, the same time as U.S. weekly jobs claims, the first estimate of fourth quarter U.S. GDP, December durable goods orders and an update of the U.S. Drought Monitor. December new home sales are out at 9 a.m., followed by U.S. natural gas storage at 9:30 a.m. Weather remains a big part of trader focus every day and export sales announcements have become more active lately. Weather Light snow continues behind a system across the eastern Midwest and Northeast Thursday. But the bigger story is a clipper system in the Canadian Prairies that will dive into northern Minnesota by Thursday evening. The system will bring scattered showers through both the Canadian Prairies and North-Central U.S. along with strong winds. Initially, temperatures will rise, but a strong cold front will pass down through the Canadian Prairies Thursday night and into the Northern Plains on Friday when temperatures will drop significantly.
| Rural Advocate News | Wednesday January 25, 2023 |
NCBA Sues Biden Administration to Overturn Lesser Prairie Chicken Listing The National Cattlemen’s Beef Association recently filed a Notice of Intent to sue the Department of the Interior and the U.S. Fish and Wildlife Service. NCBA is planning the lawsuit over the listing of the lesser prairie chicken under the Endangered Species Act. NCBA Associate Director of Government Affairs Sigrid Johannes says, “The lesser prairie chicken only survives today because of the voluntary conservation efforts of ranchers,” adding, “There are numerous places where this listing goes seriously wrong and we are defending cattle producers against this overreaching, unscientific rule.” The listing was previously set to take effect at the end of January, but thanks to pressure on the Biden administration from NCBA and our allies in Congress, the rule was delayed by 60 days. The listing will now take effect on March 27, 2023, and the states included in the species’ range are Kansas, Texas, Oklahoma, New Mexico, and Colorado. *********************************************************************************** Corn Growers Praise Biden Officials for Stance on Biotech Corn The National Corn Growers Association praised the Biden administration for issuing an official rejection of a recent proposed compromise from Mexico on biotech corn imports into the country. The development came during a meeting between Mexican officials and U.S. Department of Agriculture’s Secretary of Trade and Foreign Agricultural Affairs Alexis Taylor and the Office of the U.S. Trade Representative’s chief ag negotiator Doug McKalip. In a statement that came after the meeting, USTR and USDA said the changes offered by Mexico “are not sufficient and Mexico’s proposed approach, which is not grounded in science, still threatens to disrupt billions of dollars in bilateral agricultural trade, cause serious economic harm to U.S. farmers and Mexican livestock producers, and stifle important innovations needed to help producers respond to pressing climate and food security challenges.” NCGA President Tom Haag responded, “This is significant development and good news for corn growers.” Mexico announced in late 2020 a decree banning biotech corn into the country, beginning in early 2024. *********************************************************************************** Biden Again Nominates Dean and Schlanger to USDA President Joe Biden again nominated Margo Schlanger and Stacy Dean to politically appointed positions at the Department of Agriculture. Biden nominated Schlanger to serve as Assistant Secretary for Civil Rights and Dean as Undersecretary for Food, Nutrition, and Consumer Services. Both were nominated by the President to USDA during the last Congress but were not confirmed by the Senate. Agriculture Secretary Tom Vilsack says Dean’s commitment during her time at USDA and throughout her career “makes her the ideal person to serve as Under Secretary for FNCS.” Throughout her life and career, Schlanger has devoted herself to civil rights and to public service. At the Department of Homeland Security. Vilsack says, “Schlanger would be able to continue her commitment to public service and civil rights as we at USDA continually seek to fairly and equitably serve our employees and customers.” The nominations of Schlanger and Dean were part of a slate of political appointees announced this week by the White House. *********************************************************************************** Cattle Accounted for Largest Portion of US Animal Receipts in 2021 U.S. farm cash receipts from animals and animal products totaled $195.8 billion in 2021, led by receipts for cattle and calves at $72.9 billion, or 37 percent. USDA’s Economic Research Service reports that poultry and egg products made up the next largest share of 2021 cash receipts at $46.1 billion, or 24 percent, followed by dairy at $41.8 billion, or 21 percent, hogs at $28.0 billion or 14 percent, and other animals and animal products at $7.0 billion, at four percent. As part of its Farm Income and Wealth Statistics data product, in late August or early September each year, the Economic Research Service releases estimates of the prior year’s farm sector cash receipts from agricultural commodity sales. The data provided includes cash receipt estimates by type of commodity, which can help in understanding the U.S. farm sector. The estimates may be revised as new information becomes available. *********************************************************************************** IFEEDER Releases Materials to Support Industry Sustainability Progress The Institute for Feed Education and Research Tuesday released its Animal Food Industry Sustainability Toolkit. The toolkit is intended to drive continuous improvement in the full feed value chain. The Institute also shared its definition for “sustainability,” grounding the public charity’s next steps on its multifaceted Sustainability Road Map project. IFEEDER defined “sustainability” for the U.S. animal food industry as “defined and managed by each individual organization to deliver measurable, continuous improvements on the impacts related to people, planet and governance that are most important to them and their stakeholders.” Lara Moody, IFEEDER executive director, says, “We have provided an ‘on ramp’ for the industry to help achieve leadership buy-in and employee engagement so that sustainability becomes part of their corporate cultures and shapes future business decisions.” The toolkit materials, which are supported by 18 months of research and development, are grouped into three stages: people, planet and governance. The toolkit is free for AFIA members and IFEEDER donors at ifeeder.org. *********************************************************************************** New Guide Helps Farms, Rural Small Businesses Go Solar Solar United Neighbors Tuesday released a new guide to help farmers and rural small business owners apply for a key federal grant and loan. The guide will make it easier for rural Americans to install solar energy at their property. The comprehensive guide takes applicants step-by-step through the Rural Energy for America Program, or REAP, application process. The REAP program has been so popular that funding for the grants has not been able to meet the demand. The Inflation Reduction Act, passed last year, quadrupled REAP funding over the next ten years. Farmers and rural small business owners can receive loan guarantees of up to 75 percent of total eligible project costs through REAP. They can receive grants for up to 40 percent of the total project cost. Solar United Neighbors is hosting a free webinar February 2 to educate attendees about the REAP program and what steps they need to take to apply. Learn more at solarunitedneighbors.org.
| Rural Advocate News | Wednesday January 25, 2023 |
Wednesday Watch List Markets The Bank of Canada is expected to raise its interest rate by a quarter-percent early Wednesday, a prelude to a rate hike, expected from the Federal Reserve on February 1. The U.S. Energy Department's weekly report of energy inventories is set for 9:30 a.m. CST, including ethanol production. Traders continue to keep tabs on the latest weather forecasts and will watch for a possible export sale announcement at 8 a.m. Weather A strong storm system that brought widespread precipitation to the Southern Plains on Tuesday continues toward the Northeast on Wednesday. A band of moderate to heavy snow has developed on the north side of the track, along and north of the Ohio River, while a line of showers and thunderstorms will move through the Southeast, some of which may be severe. Winds in the Southeast are fairly strong as well with gusts increasing into the 35-45 mph range in some areas.
| Rural Advocate News | Tuesday January 24, 2023 |
USDA Announces Additional Assistance for Dairy Farmers The USDA announced additional assistance for U.S. dairy producers, including a second round of payments through the Pandemic Market Volatility Assistance Program. The agency also announced a new Organic Dairy Marketing Assistance Program. The moves will help USDA better support small- and medium-sized dairy operations that weathered COVID and now face other challenges. “USDA is announcing a second set of payments totaling almost $100 million to close out the $350 million commitment under the pandemic assistance program,” says USDA Undersecretary for Marketing and Regulatory Programs Jenny Moffitt. “The funds will be released through partnerships with dairy handlers and cooperatives to deliver the payments.” USDA will also be releasing new assistance targeted to small- and medium-sized organic dairy farmers. The goal will be to help those producers with anticipated marketing costs as they face a variety of challenges from weather to supply-chain challenges. For more information on USDA assistance, go to farmers.gov. *********************************************************************************** USDA Accepting Applications for Netherlands Trade Mission The USDA’s Foreign Agriculture Service is accepting applications from U.S. exporters for its first-ever agricultural trade mission to Amsterdam, Netherlands, April 17-20. “Agribusiness producers, exporters, and growers in the U.S. may find the Netherlands to be a perfect gateway into Europe,” says FAS Administrator Daniel Whitley. “Participants will explore exporting opportunities in this mature market, which continues to grow, and meet potential buyers in surrounding regional markets.” U.S. ag and related exports to the Netherlands reached $3.4 billion in 2021, making it the tenth-largest global market. During the trade mission, U.S. participants will meet with buyers from the Netherlands, Iceland, Norway, Sweden, Finland, Denmark, Belgium, and Germany. For companies interested in expanding sales in the Netherlands and the other markets, export opportunities include oilseeds, fats, vegetables, oils, grains, pulses, and many other exports. The deadline to apply for the Netherlands trade mission is Thursday, January 26. For information, go to fas.usda.gov. *********************************************************************************** Alltech Shares Global Feed Production Survey Alltech released its 2023 Agri-Food Outlook today, highlighting global feed production survey data. Despite significant challenges that hit the entire supply chain, global feed production remained steady in 2022 at 1.266 billion metric tons. That’s a decrease of only one-half of one percent from 2021’s estimates. The top feed-producing countries during the past year were China at number one with 260.7 million metric tons, the U.S. in second at 240.4 MMT, and Brazil a distant third with 81.9 million. Together, the top ten feed-producing countries produced 64 percent of the total world production. Half the world’s feed consumption is concentrated in four areas, including China, the U.S., Brazil, and India. Vietnam jumped ahead of Argentina and Germany into the top ten in feed tonnage. Russia overtook Spain, which reported a significant reduction in feed production. Feed production increased in several regions, including Latin America, North America, and the Oceania countries. *********************************************************************************** Farm Futures 2023 Planting Survey Results A survey from Farm Futures shows the 2023 acreage battle is ongoing. However, there could be a surprise when it comes to the total number of corn and soybean acres. A surge in projected wheat acres and costly inputs will likely limit any expansion of corn and soybean acres. About 70 percent of the respondents said they were locked in on 2023 acreage decisions by late December. Farm Futures says corn and soybean plantings will increase only minimally compared to past projections due in large part to shrinking profit margins for both corn and soybeans. The survey shows that 90.5 million acres of corn and 88.9 million acres of soybeans will get planted in the spring. Soaring costs of inputs likely mean more wheat acres as wheat typically requires less nitrogen. Anhydrous ammonia retailed for about $1,400 per ton last fall, so many farmers opted for less nitrogen-intensive crops for 2023 plantings. *********************************************************************************** Argentina Rain Forecast too Late to Save Crops Hot and dry weather continues to damage crops in Argentina and southern Brazil. Last week was the third-hottest and the overall driest third week in January in more than 30 years for the main soybean-growing regions in Argentina. The drought stress has combined with extremely hot temperatures to significantly drop the expected corn and soybean yields in Argentina. Agriculture Dot Com says more rain is in the forecast during the coming weeks, but the bad news is that the rains are too late to help crops. Brazil saw near-normal precipitation during the last week in Mato Grosso, the top-producing state in Brazil. However, hot and dry conditions continue to damage expected yields in southern Brazil. Dryness is expected to stick around in southern Brazil, and this week may become one of the hottest and driest weeks in more than 30 years in Rio Grande do Sul near the southern border. *********************************************************************************** U.S. Cattle on Feed Down Three Percent Cattle and calves on feed for the slaughter market in the U.S. for feedlots with a capacity of 1,000 or more head totaled 11.7 million on January 1. The inventory was three percent below January 1 of last year. That inventory included 7.03 million steers and steer calves, down four percent from the previous year. That group accounted for 60 percent of the total inventory. Heifers and heifer calves accounted for 4.65 million head, down one percent from 2022. Placements in feedlots during December totaled 1.8 million head, eight percent below 2021. Net placements were 1.75 million head. During December, placements of cattle and calves under 600 pounds were 435,000 head, 600-699 pounds were 435,000, 700-799 hit 415,000 head, and 800-899 pounds were 304,000 head. Marketings of fed cattle during December totaled 1.74 million head, six percent below last year. Other disappearances totaled 54,000 head in December, unchanged from 2021.
| Rural Advocate News | Tuesday January 24, 2023 |
Tuesday Watch List Markets There are no significant reports on Tuesday's docket, but judging from Monday's selling in grains, traders will remain focused on the latest weather reports and forecasts. Traders will also pause at 8 a.m. CST to see if USDA has another export sale to report after announcing 7.1 million bushels of soybeans to unknown destinations Monday. Outside markets may be an influence Tuesday with several big names expecting earning reports. Weather A strong storm is developing over Texas on Tuesday and will press northeast through Tuesday night, headed toward Memphis by early Wednesday morning. A batch of scattered showers and thunderstorms is developing with the system, including some moderate to heavy snow across the Texas Panhandle. That snow will extend up through Missouri later in the day and set up along and north of the Ohio River tonight. To the south, thunderstorms will produce moderate to heavy rain and have some potential for severe weather close to the Gulf of Mexico.
| Rural Advocate News | Monday January 23, 2023 |
Farm Group Wants Investigation Into Egg Prices A U.S. farm group is asking the Federal Trade Commission to look into the high prices of eggs and possible price gouging. Farm Action is a farmer-led advocacy organization that sent a letter to FTC Chair Lina Khan to share their concerns over “apparent price gouging.” They point out that Americans are paying more than ever for an important household staple. The USDA says a recent record outbreak of highly pathogenic avian influenza is the reason for the high prices. The group says the nation’s top antitrust regulator must look into the record-high profits of the nation’s top egg company. Cal-Maine Foods controls 20 percent of the retail egg market and reported a quarterly sales increase of 110 percent. Gross profits are 600 percent higher than the same time last year. The company says avian flu is driving up prices. However, Cal-Maine had no positive flu tests on any of its farms. *********************************************************************************** CoBank: Dairy Industry Eager for FMMO Reform America’s dairy producers and processors are closely watching discussions about the next farm bill and looking for reforms to Federal Milk Marketing Orders. CoBank says the industry feels that current FMMOs don’t reflect today’s market environment, and the consequences could be drastic. Make allowances are an important part of the orders that haven’t been updated since 2008 and were based on data from as far back as 2006. Make allowances estimate dairy processors’ costs of converting milk into dairy products. Many of those production costs, including labor and energy, have risen dramatically since make allowances were updated 15 years ago. While the current make allowances have stayed the same since 2008, prices for industrial power rose 64 percent, and labor costs in dairy manufacturing climbed 48 percent. While industrial natural gas prices have fallen 11 percent, they’ve been highly volatile during that time. Failing to update them could hinder future dairy industry growth. *********************************************************************************** Fertilizer Institute Names 2023 4R Advocates The Fertilizer Institute selected three farmers and their fertilizer retailers as 4R advocates. They’re being recognized for their commitment to implementing fertilizer management practices that incorporate the principles of 4R Nutrient Stewardship and have demonstrated economic and environmental benefits. Now in its 12th year, the 4R Advocate Program demonstrates the in-field successes of implementing 4R practices based on the right source, rate, time, and placement of fertilizer. “While 4R Nutrient Stewardship is a priority for the fertilizer industry, it’s also a tangible solution for thousands of farmers across America who are seeking fertilizer application practices that have a real-world impact on their bottom lines and their land,” says TFI president and CEO Corey Rosenbusch. The 2023 class of advocates represent 13,770 acres across three states and grow corn, soybeans, sugar beets, and other crops. In 2021, the fertilizer industry committed to putting 70 million acres of cropland under 4R management by 2030. *********************************************************************************** Clean Fuels Conference Begins Monday Clean Fuels Alliance America will kick off the Clean Fuels Conference on Monday, January 23 (today) at the Tampa Convention Center in Tampa, Florida. The event runs through Thursday and will likely draw more than 725 registered participants, including agricultural interests, clean fuel producers, marketers, end users, and more. It’s the 20th annual industry conference formerly known as the National Biodiesel Conference and Expo. This is the first-ever Clean Fuels Conference. “Companies know consumers want to feel better about their purchases,” says Clean Fuels CEO Donnell Rehagen. “Low-carbon transportation fuels in planes, trains, ships, and trucks will have to be the focus of their efforts.” The theme of this year’s conference is “United As One.” It’s designed to highlight the industry’s commitment to bringing together stakeholders to build a sustainable transportation future. The clean fuels industry set a goal of producing six billion gallons a year of sustainable fuels by 2030. *********************************************************************************** Lamb Board Releases New Strategic Plan The American Lamb Board released its fiscal year 2022 Annual Report to inform Mandatory Lamb Checkoff stakeholders of its work to mitigate outside forces and challenges and take advantage of opportunities ahead. “Even though many challenges were out of our control, it’s critical that we keep driving forward as hard as we can to promote American lamb and the U.S. sheep industry,” says ALB chair Peter Camino. ALB has also identified three primary goals as it turns to FY 2023. The first is to continue to grow consumer demand for American lamb. The second is to prioritize research and education efforts to improve product quality and consistency, increase productivity, and grow the year-round supply of lamb. The board also wants to expand the awareness, understanding, engagement, and involvement of stakeholders in the American Lamb Checkoff. “As the American lamb industry looks to the future, there are several areas of opportunity,” Camino says. *********************************************************************************** 2025 Dietary Guidelines Advisory Committee Announced The USDA and the Department of Health and Humans Services announced the appointment of 20 nationally recognized scientists to serve on the 2025 Dietary Guidelines Advisory Committee. The Committee will review the current body of science on key nutrition topics and develop a scientific report that includes its independent assessment of the evidence and recommendations for USDA and HHS as they develop the Dietary Guidelines for Americans. The dietary guidelines serve as the foundation for national nutrition programs, standards, and education. In addition, they provide health professionals with guidance and resources to assist the public in choosing an overall healthy diet that works for them. “Diet-related diseases are on the rise across all age groups, and we must rise to the challenge by providing nutrition guidance that people from all walks of life can tailor to meet their needs,” says USDA Secretary Tom Vilsack. “This will help Americans achieve better nutritional habits.
| Rural Advocate News | Monday January 23, 2023 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts, especially for Argentina where drought-stricken crops have increased chances for rain. Traders may pause at 8 a.m. CST to see if USDA has an export sale to announce and will check USDA's weekly report of export inspections at 10 a.m. Weather Another strong storm system is moving through the Four Corners area early Monday morning. That system will move into Texas tonight and head through the Northeast for Tuesday and Wednesday. Widespread precipitation will occur in Texas and Oklahoma tonight, including some moderate to heavy snow.
| Rural Advocate News | Monday January 23, 2023 |
Top 5 Things to Watch - Key Happenings the Newsroom is Tracking for the Week of Jan. 22-28 1. Altered reality of wheat. As DTN Lead Analyst Todd Hultman discussed in Friday's Todd's Take, there's a growing disconnect between supply and demand forces and the actual price of wheat. With continued low soil moisture in major parts of the U.S. breadbasket, continued war in the Black Sea area, and already low wheat stocks, Hultman expects current $7-$8 cash wheat prices (based on DTN's national cash index) to get a reality check at some point. 2. Clipper blockers hang in there, for now. Our weather team is watching two trough systems work their way through Texas to the Northeast, bringing additional moisture to the central and eastern portions of the country. Depending on where your farm is, the first of those systems might be there as you read this. The second should be right behind it early in the week. Both include a band of snow, so winter is far from gone. But for some time now frigid cold weather has been absent. Unfortunately, chances for the next arctic blast will probably come late next week as the pattern allows cold air to come down from Canada. 3. Fueling around: Deep winter can be time to refill fuel tanks drained by the last of harvest, but global diesel market conditions have put the squeeze on those plans. DTN Ag Business Editor Katie Dehlinger will gather the latest experts' thoughts on near- to medium-term fuel prices. Watch for her story by mid-week. 4. Laws and orders: We'll be watching a number of courtroom-related actions this week. These include the latest on a number of suits filed against the EPA over waters of the United States (WOTUS) regulations. The meat packing industry also will likely be in the courtroom news. Watch for stories on the complaint filed with the Securities and Exchange Commission that meat packer JBS isn't meeting carbon emissions goals. We'll also be looking into the recent mass of advertisements on social media platforms for cattlemen to join the price-fixing suits against Big Four meat packers. R-CALF USA filed the first suit in 2019, and the number of groups and food companies filing similar claims against the packers has grown in recent months. Along with that, advertisements from law firms offering to represent producers in any class action settlements are popping up like volunteer wheat after a grain cart spill. Legal experts say producers should not need representation; we'll get into the details. 5. Winter meetings pick up: We'll have DTN staff at several events this week. DTN Ag Policy Editor Chris Clayton will be in Kansas, looking in to the growing town versus farm water availability issues, and also attending the No-Till on The Plains Winter Conference, Jan. 23-25 in Wichita. Watch for his reporting from the Sunflower State. DTN Lead Analyst Todd Hultman will be at the Sioux Falls Farm Show in South Dakota, giving his latest market outlook on Jan. 25-27.
| Rural Advocate News | Friday January 20, 2023 |
Groups File Legal Challenges to New WOTUS Rule Groups representing agriculture, infrastructure, housing, and petroleum filed a legal challenge to the new Waters of the U.S. Rule. “The Biden Administration’s WOTUS definition is an attack on farmers and ranchers, and we’ll be fighting back in court,” says Mary-Thomas Hart, chief counsel for the National Cattlemen’s Beef Association. “The rule removes longstanding exclusions for small and isolated water features on farms and ranches and adds to the regulatory burden farmers already face.” Non-agriculture groups in the lawsuit include the American Petroleum Institute, the Associated General Contractors of America, and many others. “The new rule creates uncertainty for farmers and ranchers even if they’re miles from the nearest navigable water,” says Farm Bureau President Zippy Duvall. “We believe a judge will see these regulations exceed the scope of the Clean Water Act.” A Supreme Court decision in Sackett v. EPA could require the EPA to start over again on defining WOTUS. *********************************************************************************** Rebound Continues in Farm Lending Farm lending activity continued to gradually increase along with further growth in loan sizes. The Kansas City Federal Reserve says the average size of non-real estate farm loans was about 20 percent higher than a year ago and drove an increase in lending volumes for the fourth straight quarter. Average interest rates on farm loans rose sharply alongside higher benchmark rates and reached a ten-year high, putting additional upward pressure on financing costs. The outlook for farm finances remained favorable alongside elevated commodity prices, but increased interest rates, challenging weather, and high production costs remain key concerns. Higher expenses contributed to a rebound in lending last year, but strong income and liquidity likely limited the financing needs of many producers. Looking ahead, elevated operating expenses could put additional upward pressure on loan demand. Lending activity was seven percent higher than last year. Production expenses have increased by 15 percent since 2020. *********************************************************************************** NCBA Statement on USDA’s Proposed Traceability Rule National Cattlemen’s Beef Association President-Elect Todd Wilkinson released a statement on the USDA’s proposed rule on electronic identification for transporting cattle over state lines. “As USDA has worked toward a nationally significant traceability program, NCBA has engaged with industry stakeholders and USDA to ensure that cattle producers are represented and protected,” says Wilkinson, who also chairs the NCBA Traceability Working Group. “Any program must allow maximum flexibility and privacy while minimizing costs for producers and any industry disruptions.” NCBA also says foot-and-mouth disease outbreaks around the world continue to result in disruptions to commerce and depopulate livestock. That means immediate action is needed. “NCBA is committed to working with USDA to ensure workable solutions are identified and implemented,” Wilkinson says. The organization also says that cattle producers can be confident that any finished product will protect the nation’s livestock herd. The NCBA is continuing to review the proposed rule in its entirety. *********************************************************************************** USDA Investing Funds to Reduce Wildfire Risk Ag Secretary Tom Vilsack announced his agency is expanding efforts to reduce the risk of wildfires in the western U.S. Funds will be invested to directly protect at-risk communities and critical infrastructure in 11 additional landscapes in Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington. “It’s no longer a matter of if a wildfire will threaten many western communities, it’s a matter of when,” Vilsack says. “This announcement means over $490 million will be used to restore national forests, including the restoration of resilient old-growth forest conditions.” The Forest Service announced its original ten landscape project areas last year. Combined with the additional announcement this week, that represents a total USDA investment of $930 million across 45 million acres. The work spans 134 of the 250 highest-risk fire sheds identified in the Wildfire Crisis Strategy and will mitigate the wildfire risk for around 200 communities in the western United States. *********************************************************************************** January Beige Book Contains Observations on the Ag Economy The Federal Reserve Board released its January 2023 Beige Book Update, which summarizes current economic conditions in each district. The summary includes agricultural conditions in several districts. The Fed in Atlanta said ag conditions were little changed from the previous report but did note Florida citrus yields were down notably due to Hurricane Ian. The Chicago Fed says after a strong year in the district, agricultural income will be lower in 2023 but still see solid returns. The St. Louis branch says inflation-adjusted farm incomes are near a 50-year high and leading to optimism for this year despite rising input costs. The Minneapolis Fed says ag conditions were stable as farm incomes and working capital remained strong heading into this year. Ag conditions in the San Francisco district remained in generally weak condition. Dollar sales were up but down in volume. Rainfall continued to improve soil moisture in the Dallas Fed’s district. *********************************************************************************** Avoiding Antibiotic Resistance on the Dairy Farm Antibiotic use in dairy animals is just to help the animal overcome illness. Mark van der List, a vet with Boehringer-Ingelheim, says the challenge is to help them overcome the sickness without furthering resistance and allowing antibiotic residue into food products. He says it’s important to work with a veterinarian who knows your herd as well as they do. Other tips include following label directions carefully. Producers need to mark and separate all treated animals. Every employee should be easily able to identify any treated animals. Make sure to keep detailed records of all treatments given to each animal in the herd. It’s also important to remove all doubt by making the protocol for treating animals as airtight as possible. “Dairy producers take the responsibility for antibiotic stewardship seriously,” van der List says. “While many already have strong measures in place, it’s always a good idea to fine-tune existing protocols.”
| Rural Advocate News | Friday January 20, 2023 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST, followed by U.S. existing home sales for December at 9 a.m. and USDA's cattle on-feed report for January 1 at 2 p.m. Traders continue to closely watch the latest weather forecasts, especially for Argentina where crop ratings fell even lower Thursday. The market will also check for a possible export sale announcement from USDA at 8 a.m. Weather As a system continues to push off the East Coast early Friday, some lake-effect snows will continue over the Great Lakes throughout the day. Another system is working its way through the Four Corners area and will move out into Texas tonight and Saturday. In response, widespread precipitation is expected to develop, including a band of moderate to heavy snow across Colorado and Kansas, bringing in much-need moisture for the longstanding drought. Mild temperatures continue across most areas east of the Rockies.
| Rural Advocate News | Thursday January 19, 2023 |
USDA Seeks Comment on Proposal to Strengthen Animal Disease Traceability USDA's Animal and Plant Health Inspection Service proposes to amend animal disease traceability regulations and require electronic identification for interstate movement of certain cattle and bison. APHIS is also proposing to revise and clarify record requirements. The changes would strengthen the Nation's ability to quickly respond to significant animal disease outbreaks, according to USDA. Animal disease traceability, or knowing where diseased and at-risk animals are, where they've been, and when, is important to ensuring a rapid response when animal disease events occur. Rapid traceability in a disease outbreak could help ranchers and farmers return to selling their products more quickly, limit how long farms are quarantined, and keep more animals from getting sick. The proposed rule would require official eartags to be visually and electronically readable for official use for interstate movement of certain cattle and bison. A comment period on the proposal through the Federal Register is open through March 22, 2023. *********************************************************************************** USDA Publishes Strengthening Organic Enforcement Final Rule USDA’s National Organic Program Wednesday published the Strengthening Organic Enforcement final rule. The update to USDA organic regulations strengthens oversight and enforcement of the production, handling, and sale of organic products. The final rule implements 2018 Farm Bill mandates, responds to industry requests for updates to the USDA organic regulations, and addresses National Organic Standards Board recommendations. USDA Undersecretary for Marketing and Regulatory Programs, Jenny Lester Moffitt, says, "Protecting and growing the organic sector and the trusted USDA organic seal is a key part of the USDA Food Systems Transformation initiative." The Strengthening Organic Enforcement rule is the biggest update to the organic regulations since the original Act in 1990, providing a significant increase in oversight and enforcement authority to reinforce the trust of consumers, farmers, and those transitioning to organic production, according to USDA. Organic stakeholders affected by the rule will have one year from the effective date of the rule to comply with the changes. *********************************************************************************** EPA Posts Revised WOTUS to Federal Register The Environmental Protection Agency and Army Corps of Engineers published the revised Waters of the U.S. rule in the Federal Register Wednesday. The publication means the revised rule will go into effect on March 20, 2023. EPA and the Army Corps announced the rule at the end of 2022, which will replace the Navigable Waters Protection Rule. At the time, American Farm Bureau Federation President Zippy Duvall commented, “EPA has doubled down on the old significant nexus test, creating more complicated regulations that will impose a quagmire of regulatory uncertainty.” The rule comes as agriculture awaits a Supreme Court decision in the Sacketts vs. EPA case, which could send WOTUS back to the drawing board. However, the Sackett case is not focused on the new rule. AFBF General Counsel Travis Cushman says, “you would probably need to have a new challenge to that rule," based on the Sackett Supreme Court decision. *********************************************************************************** December Producer Price Index Declines The Producer Price Index for final demand declined 0.5 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported Wednesday. The index measures the average change over time in the selling prices received by domestic producers for their output. Final demand prices advanced 0.2 percent in November and 0.4 percent in October. The index for final demand increased 6.2 percent in 2022 after rising 10.0 percent in 2021. Prices for final demand less foods, energy, and trade services edged up 0.1 percent in December, up 4.6 percent in 2022, following a seven percent rise in 2021. Nearly half of the December decrease for final demand goods can be traced to a 13.4-percent decline in prices for gasoline. The indexes for diesel fuel, jet fuel, fresh and dry vegetables, canned, cooked, smoked, or prepared poultry, and basic organic chemicals also fell. In contrast, prices for carbon steel scrap increased 8.3 percent. The indexes for chicken eggs and for electric power also moved higher. *********************************************************************************** Horticultural Products Drive Total U.S. Agricultural Import Growth The value of U.S. agricultural imports grew an average of four percent a year between fiscal years 2012 and 2022, according to USDA’s Economic Research Service. Total U.S. agricultural imports rose from $139 billion to $194 billion, with growth concentrated in select commodity groups. Horticultural products grew at a rate of six percent a year and, at $97.2 billion in value in 2022, accounted for 65 percent of the total growth in imports. Within the horticultural group, fresh fruits were the largest contributor at $17.9 billion, growing at an annual rate of nine percent over the period and accounting for 15 percent of total import growth. Key commodities in the fresh fruit group include avocados, berries, and citrus, which the United States imports mostly from Latin American countries. Demand for horticultural products has largely been driven by consumer desire for year-round supply, changing consumer preferences, and foreign production that is increasingly competitive with domestically grown produce. *********************************************************************************** IDFA Names Mike Brown as Chief Economist The International Dairy Foods Association this week named Mike Brown as chief economist. Brown has a long and distinguished career in the dairy industry, most recently leading the milk and dairy procurement team for The Kroger Co. as director of dairy supply chain. Brown is a recognized expert on milk pricing policy and has worked for both farmer-owned cooperatives and proprietary businesses, all of which are current IDFA members. IDFA President and CEO Michael Dykes says, “We are confident that with Mike Brown as IDFA’s chief economist, our approach to the future will ensure the domestic and global competitiveness of the U.S. industry.” IDFA also announced that it has engaged in consulting agreements with three policy and legal experts to support dairy policy and pricing efforts led by Carlin and Brown. They are Chip English, Steven J. Rosenbaum, and former U.S. Representative Collin Peterson. The additions come as the dairy industry expects a Federal Milk Marketing Order reform effort this year.
| Rural Advocate News | Thursday January 19, 2023 |
Thursday Watch List Markets U.S. weekly jobless claims, December U.S. housing starts and an update of the U.S. Drought Monitor will all be out at 7:30 a.m. CST Thursday. The U.S. Energy Department's natural gas storage report will attract interest at 9:30 a.m., now that gas prices are near $3.00 and will be followed by weekly energy inventories, including ethanol production at 10 a.m. USDA's monthly Livestock, Dairy and Poultry outlook is set for 2 p.m. Weather A strong winter storm that brought heavy snow to portions of the Central Plains and Midwest and heavy rain farther south continues east on Thursday, with more of the precipitation focused on the Midwest into the Northeast going into Friday. Another system is moving through the West, which will emerge in the Southern Plains on Friday. Even behind the current system, temperatures for most areas are above normal for this time of year.
| Rural Advocate News | Wednesday January 18, 2023 |
US, EU Sign Tariff Rate Quota Agreement U.S. and European Union trade leaders Tuesday signed the U.S. – EU Tariff Rate Quota Agreement. The agreement, once implemented, will enable the United States to preserve its existing access to the EU market for various agricultural commodities following the United Kingdom's exit from the EU on January 1, 2021. The new Tariff Rate Quota allocations are based on the historic pattern of agricultural exports to the 27 European Union Member States. The agreement will restore favorable market access for multiple U.S. agricultural products, including for U.S. rice, almonds, wheat, and corn, according to the U.S. Trade Representative's Office. In the first eleven months of 2022, the United States exported $11.1 billion worth of agricultural goods to the European Union. Trade Representative Katherine Tai, Sweden's Permanent Representative to the European Union, Ambassador Mikael Lindvall, and European Commission Deputy Director General for Agriculture and Rural Development, Michael Scannell, signed the agreement. *********************************************************************************** House Ag Committee Republicans Set Roster House Agriculture Committee Republicans started the week by announcing the committee’s Roster for the 118th Congress. Glenn GT Thompson of Pennsylvania serves as the chair of the committee. The roster features 12 new members, which includes returning member Frank Lucas of Oklahoma. Lucas previously chaired the committee from 2011 – 2015. Lucas led the committee during the development of the 2014 Farm Bill. Other notable new members include John Duarte of California and Mark Alford of Missouri. Duarte was the subject of a high-profile lawsuit filed by the Environmental Protection Agency under the Clean Water Act. The dispute ended in 2017 with Duarte agreeing to pay a civil penalty and preserve and restore streams and wetlands on his farm. Alford, a new member of Congress, ended a career as a Kansas City area news anchor to run for Congress. Additionally, 15 members return to the committee after serving in the previous Congress. *********************************************************************************** NASDA Sets 2023 Policy Priorities Press The National Association of State Departments of Agriculture Tuesday announced the organization’s primary policy focus for 2023. NASDA members, the state commissioners, secretaries and directors of agriculture, hand-selected seven issues to focus on. The issues include the 2023 Farm Bill, which NASDA says must remain unified, securing a commitment to American agriculture and the critical food and nutritional assistance programs for those who need it most. As for environmental regulations, NASDA supports the science-based and comprehensive regulatory framework the Federal Insecticide, Fungicide, and Rodenticide Act provides to ensure environmental and public health protection. Regarding the recently published “waters of the U.S.” rule, NASDA will continue to impress the role of states in regulating non-navigable waters. Other priorities include food production and the supply chain, food safety, animal health, international trade and workforce development. NASDA CEO Ted McKinney says, “We believe these are the areas where state departments of agriculture are uniquely positioned to lead impact and direct policymaking solutions this year.” *********************************************************************************** Rural Job Growth Shifting to High-skill Workers Over the last two decades, the strongest rural job gains were in smaller industries that tend to employ high-skill workers. USDA Economic Research Service reports the highest growth was in the real estate industry. Also showing rapid growth was the administrative services industry, which includes office administration, facilities support, business support services, security services, conventions and trade shows, and waste management and treatment. Other rural industries that grew over the past two decades were health care and social assistance; professional, scientific, and technical services; educational services; and finance and insurance. The growth of these industries represented a shift in rural production toward industries that employ higher shares of high-skill workers. Consistent with this shift, the percent of rural college-educated workers increased from 21.5 percent in 2012 to 23.8 percent in 2019. However, these rates have remained lower than the share of college-educated urban workers, at 38 percent in 2019. *********************************************************************************** House Ag Chair to Keynote Plant Based Product Council Conference House Agriculture Chairman Glenn GT Thompson will keynote the inaugural Plant Based Products Council Annual Conference in March. The Pennsylvania Republican will share remarks on Congress’ priorities for the 2023 Farm Bill, growing the bioeconomy, rural economic development, and fostering innovation in agriculture. PBPC Executive Director Jessica Bowman says, “We are excited to convene Chairman Thompson and other policy and industry leaders to drive this industry forward.” PBPC2023 will take place at the JW Marriott in Washington, D.C., from Monday, March 27, to Wednesday, March 29, 2023. The association's inaugural conference will explore the innovations, business models, and policies influencing the entire lifecycle of bioproducts in support of a robust circular economy. Attendees will hear from and network with industry leaders, policymakers, brands, and experts through panels, keynotes, networking sessions, and more. Learn more about the Plant Based Products Council and its inaugural annual conference at www.pbpc.com. *********************************************************************************** USDA Introduces an E-Application for the 1890 National Scholars Program The Department of Agriculture Tuesday unveiled a new e-application for the USDA/1890 National Scholars Program. The program aims to encourage students at 1890s institutions to pursue food and agriculture career paths. For the first time, the new e-application for the USDA/1890 National Scholars Program allows young people around the country to complete and submit their applications online. The program is administered through USDA’s Office of Partnerships and Public Engagement. The USDA/1890 National Scholars Program is a partnership between USDA and the country’s 19 historically Black land-grant universities that were established in 1890. USDA partners with these 1890 universities to provide scholarship recipients with full tuition, fees, books, room, and board. Scholarship recipients attend one of the 1890 land-grant universities, and pursue degrees in agriculture, food, natural resource sciences, or related academic disciplines. The scholarship also includes work experience at USDA. The application deadline is Wednesday, March 15, 2023. For more information, contact 1890init@usda.gov.
| Rural Advocate News | Wednesday January 18, 2023 |
Wednesday Watch List Markets A report on U.S. retail sales for December is due out at 7:30 a.m. CST, followed by December U.S. industrial production at 8:15 a.m. The Federal Reserve's monthly Beige Book is set for release at 1 p.m. and weekly energy inventories are pushed to Thursday morning, due the the holiday schedule. Traders will keep close watch on the latest weather forecasts, especially for South America, and for any news of an export sale. Weather A storm system that has moved into western Kansas is producing a band of heavy snow across portions of Colorado and Nebraska early Wednesday morning, along with scattered showers farther south and across Missouri and Arkansas along and ahead of a cold front. The heavy snow will spread northeast throughout the day and night, through Iowa, southern Minnesota, and Wisconsin. Heavy snowfall amounts of 6-12" are expected in this band, with potential for some heavier amounts in some places. Farther south along the cold front, severe weather will be possible, most likely this afternoon near the Lower Mississippi River Valley.
| Rural Advocate News | Tuesday January 17, 2023 |
NASDA Conducts Vietnam Trade Mission National Association of State Departments of Agriculture members and leadership traveled to Vietnam last week. The delegation embarked on the organization's first trade mission to explore global emerging markets through the Department of Agriculture Emerging Markets Program. NASDA President and Wyoming Department of Agriculture Director Doug Miyamoto, Washington State Department of Agriculture Director Derek Sandison, Delaware Secretary of Agriculture Michael Scuse, Texas Department of Agriculture Assistant Commissioner Dan Hunter and NASDA CEO Ted McKinney participated in the mission. The delegation explored trading opportunities and educated Vietnamese agricultural, government and business leaders on American agriculture and markets. NASDA was recently awarded $925,000 from USDA to promote exports of U.S. agricultural products to developing countries with strong growth potential, including Vietnam. NASDA will also conduct trade missions to Thailand, Indonesia and Kenya in 2023. NASDA is a nonpartisan, nonprofit association that represents the elected and appointed commissioners, secretaries and directors of the departments of agriculture in all 50 states and four U.S. territories. *********************************************************************************** Grassley Intends to Reintroduce Farm Credit for Americans Act Senator Chuck Grassley last week announced he intends to reintroduce the Farm Credit for Americans Act. The legislation bans the federal government from allowing foreign individuals to obtain credit and financial services through the Farm Credit System. The Iowa Republican wrote the legislation with Senator Sherrod Brown, an Ohio Democrat. Specifically, the legislation prevents the Farm Credit Administration from underwriting foreign buyers seeking to purchase U.S. farmland. It would amend the 1971 Farm Credit Act to ensure foreign nationals can’t obtain financing through federal government-backed financial institutions to purchase American farmland. Grassley says, “Young and beginning farmers here at home should not be squeezed out or compete with foreign investors subsidized by the American taxpayer.” According to the USDA, foreign ownership of U.S. farm acres increased 60 percent between 2009 and 2019. Increasingly, young and beginning farmers are competing with institutional investors, such as pension funds, endowments and even professional athletes who are diversifying their financial portfolios with prime farmland. *********************************************************************************** RMA to Host Crop Insurance Workshop for Specialty Crops, Organics Farmers in Iowa can attend a USDA's Risk Management Agency workshop to learn more about crop insurance options, including those designed for agricultural producers who grow specialty and organic crops. RMA will host the free in-person workshops Tuesday, January 24, in Davenport, Iowa. A morning and afternoon session is scheduled, and both have virtual options for producers outside the state or those who can't make it to the in-person event. The workshops will cover the ins and outs of the Whole-Farm Revenue Protection and Micro Farm programs, which are great insurance options for specialty crop, organic, urban, and other producers with diverse operations. RMA subject matter experts will provide an in-depth look at these policies. The events will include RMA Administrator Marcia Bunger and other RMA experts. Participants will have the opportunity to ask questions and get answers in real-time. The Risk Management Agency will hold another round of workshops next month in Michigan. *********************************************************************************** CHS Inc. and Cargill to expand TEMCO operations to include the Texas Gulf CHS Inc. and Cargill recently announced the intent to expand the scope of their joint venture, TEMCO LLC, by adding the Cargill-owned export grain terminal in Houston, Texas. The addition of the Houston terminal will expand the joint venture's export capabilities, providing shipping access for grains, oilseeds and byproducts through the port of Houston. TEMCO currently operates three facilities in the Pacific Northwest. The three facilities distribute grain to global markets, primarily located in the Asia-Pacific region. Through TEMCO, both companies look forward to building on 24 years of successful partnership to expand global grain market access for U.S. farmers to help meet the increasing global need for food. The Houston terminal is located approximately 40 miles inland from the Gulf of Mexico via Galveston Bay. With six million bushels of storage and capacity for 350 rail cars, the facility handles up to 250 million bushels annually. The terminal receives both trucks and railcars with a variety of commodities for global export. *********************************************************************************** Smithfield Foods Donates 35,000 Pounds of Food to Support Kentucky Smithfield Foods, Inc. has donated 35,000 pounds of food, equal to 140,000 servings, to help feed victims of the severe winter weather that recently engulfed Eastern Kentucky. Smithfield delivered the food products to Mercy Chefs, which is currently stationed in Hazel Green, Kentucky, to provide disaster relief for local residents. The Portsmouth, Virginia-based nonprofit travels to disaster zones across the U.S. to serve free chef-prepared, restaurant-quality hot meals to local residents, volunteers and first responders. Smithfield products donated to this relief effort include lunch meat, bacon, fully cooked boneless ham, hickory smoked ham and smoked spiral sliced ham. The extreme winter weather in Eastern Kentucky left many residents with frozen pipes and entire towns without potable water. Mercy Chefs expects to cook 2,000-3,000 hot meals per day for residents in the area. To make a donation or find out how to volunteer locally, visit MercyChefs.com/easternky. *********************************************************************************** Cumberland Introduces Scout Robot Cumberland, AGCO’s poultry production equipment brand, is introducing Scout, the world’s first ceiling-suspended robot system. The system continuously monitors broiler chickens and their poultry house environments to increase animal welfare as well as farm productivity. Scott Becker, director of North America sales for Cumberland, says, “With Scout, producers can achieve better feed conversion, early disease detection and fine-tuning of climate control, resulting in reduced mortality and less condemnation numbers.” The advanced robot uses a complete set of sensors to map key indicators that impact bird health and performance, including thermal comfort, air quality, light intensity, sound levels and bird distribution. Scout also classifies excrement for early disease detection 24 to 48 hours before producers may become aware of an issue. In addition, the technology identifies dead birds. Monitoring information is available to producers 24/7 from any device, including daily and weekly reports with maps of their entire house.
| Rural Advocate News | Tuesday January 17, 2023 |
Tuesday Watch List Markets Back from a three-day weekend, traders may still be pondering the many new estimates USDA set out last Thursday. News over the weekend and the latest weather forecasts, especially anything pertaining to South America, will be reviewed. There are no significant reports on Tuesday's docket other than USDA's weekly grain export inspections at 10 a.m. CST. Weather A system was moving through the Great Lakes early Tuesday with scattered showers arcing through the Mid-Atlantic and Southeast as well. This system continues to push east throughout the day. Another will be right on its heels as it moves from the Four Corners into the Central Plains tonight. A band of heavy snow is expected to develop over northeast Colorado through Nebraska and into the Upper Midwest tonight through Wednesday, along with scattered showers and thunderstorms for southwest Kansas down through west Texas. The precipitation over the southwestern Plains will be most welcome as the region remains in severe drought. It remains very warm across most of the country during the statistically coldest week of the year.
| Rural Advocate News | Friday January 13, 2023 |
USDA Releases January WASDE Report USDA released the latest World Agricultural Supply and Demand report Thursday. This month's U.S. corn outlook calls for reduced production, food, seed, and industrial use, feed and residual use, exports, and ending stocks. Corn production is estimated at 13.730 billion bushels, down 200 million. Exports were reduced 150 million bushels to 1.925 billion, reflecting the slow pace of shipments through December, and the lowest level of outstanding sales as of early January since the 2019/20 marketing year. The season-average corn price received by producers is unchanged at $6.70 per bushel. Soybean production is estimated at 4.276 billion bushels, down 69 million, led by reductions for Missouri, Indiana, Illinois, and Kansas. The soybean export forecast was reduced 55 million bushels to 2.0 billion. The U.S. season-average soybean price is projected at $14.20 per bushel, up 20 cents. The outlook this month calls for increased supplies, larger domestic use, unchanged exports, and lower ending stocks. The season-average farm price is unchanged at $9.10 per bushel. *********************************************************************************** Total Household Income up for Commercial Farms From 2015 to 2021, the median total household income for commercial U.S. farms rose an estimated 16 percent, to $278,339 from $238,994. Commercial farms earn more than $350,000 gross cash farm income regardless of the principal operator’s occupation. USDA’s Economic Research Service reports that in 2021, the median total household income for commercial farms remained above the median income of $75,201 for all U.S. households. Farm households rely on a combination of on-farm and off-farm sources of income. On-farm income is determined by farm costs and returns that vary from year to year, and in any given year, a majority of farm households report negative farm income. Off-farm sources—including wages, nonfarm business earnings, dividends, and transfers—are the main contributor to household income for most farm households. Because households operating commercial farms rely mostly on on-farm sources of income, they experience the largest shocks in household income when farm sector income rises or falls. *********************************************************************************** USDA Accepting Applications for Netherlands Trade Mission USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for its first-ever regional agricultural trade mission to Amsterdam, Netherlands, April 17 – 20, 2023. FAS Administrator Daniel Whitley says, “Participants will explore exporting opportunities in this mature market, which continues to grow, and meet potential buyers in surrounding regional markets.” U.S. agricultural and related exports, including fishery and forestry products, to the Netherlands totaled $3.4 billion in 2021, ranking it the U.S.’s 10th largest market globally. During the trade mission, U.S. participants will meet with buyers from the Netherlands, Iceland, Norway, Sweden, Finland, Denmark, and neighboring Belgium and Germany. Participants will conduct business-to-business meetings with potential buyers, receive market briefings from FAS and trade experts, and participate in site visits and other networking activities while in the Netherlands. The deadline to apply for the Netherlands trade mission is Thursday, January 26. Information about the trade mission and how to apply is available on the USDA FAS website. *********************************************************************************** USA Rice Calls House Ways and Means Chair Smith an Ally Earlier this week, Representative Jason Smith was tapped to lead the powerful House Committee on Ways and Means. The Missouri Republican will lead the oldest committee in the U.S. Congress, which is the principal tax-writing body in the House of Representatives. The committee oversees not only taxes and revenue generation, but also tariffs and reciprocal trade agreements for the United States. USA Rice member and Missouri farmer Zach Worrell says, “Congressman Smith has long been a friend of Missouri agriculture and especially Missouri rice,” adding, “We are looking forward to having a rice industry ally lead this committee to advocate for U.S. rice on a global scale on the many trade issues we face.” Tax policy continues to be an important issue for rice farmers and rice-related businesses looking to pass operations onto the next generation. Smith is a farmer, businessman, and former state legislator, and is currently serving his sixth term representing Missouri’s 8th Congressional District. *********************************************************************************** Thank You Farmers Project Donations Surpass $4 Million Culver's Thank You Farmers Project has now eclipsed $4 million raised since its creation in 2013. Through initiatives organized by Culver's on a systemwide level and the fundraising efforts of local restaurants throughout 2022, the program raised $750,000 toward its mission of advocating for the positive impact agriculture has on the world. Proceeds raised through the Thank You Farmers Project directly support those actively bringing positive change to the agriculture industry. These beneficiaries include groups making a difference with agriculture efforts in Culver's local communities as well as national organizations working to advance the industry on a broader scale, like the National FFA Organization and U.S. Farmers and Ranchers in Action. Alison Demmer, Culver's marketing and public relations manager, says, “We were so proud to see our guests join in this mission with us in 2022, and we look forward to supporting agriculture together through the Thank You Farmers Project long into the future." *********************************************************************************** Commodity Classic Registration Ends January 20 Only a few days remain to take advantage of early registration discounts for the 2023 Commodity Classic to be held March 9-11 in Orlando. Friday, January 20, 2023, is the last day the early registration discount will be in effect. Commodity Classic 2023 co-chair George Goblish says, “Going to Commodity Classic is an investment in any grower’s operation.” Registration fees vary depending on the number of days attended. Full registration covers all three days of the event, and one-day registrations are also available. Members of the National Corn Growers Association, American Soybean Association, National Sorghum Producers, National Association of Wheat Growers, and the Association of Equipment Manufacturers receive additional discounts on registration. All registration and housing reservations should be made online at CommodityClassic.com. The 2023 Commodity Classic will be held at the Orange County Convention Center West Concourse in Orlando, Florida. The convention center will house all Commodity Classic events.
| Rural Advocate News | Friday January 13, 2023 |
Friday Watch List Markets On Friday the 13th, the University of Michigan's index of U.S. consumer sentiment is due out at 9 a.m. CST and several Federal Reserve officials are speaking around the country. Traders will keep tabs on the latest weather forecasts, especially in South America and will still be influenced by data from Thursday's USDA reports. January futures contracts in the soy complex are set to expire early Friday. Weather A system leaving the East Coast and another along the West Coast will produce scattered showers on Friday. Some relatively cold air moving over the Great Lakes will produce a bit of lake-effect snow as well. Temperatures remain mild for the coldest time of the year outside of the Southeast, even after a cold front moved through this week.
| Rural Advocate News | Thursday January 12, 2023 |
Equipment Sales Mixed in 2022 Combine harvester sales finished 2022 with healthy gains in unit sales while ag tractors finished below 2021 levels in both the U.S. and Canada. The Association of Equipment Manufacturers says total U.S. ag tractor unit sales fell during December and the whole year when compared with 2021. The sub-40 horsepower segment led losses in both time frames, losing 26 percent for the month and 19 percent for the calendar year. U.S. combine sales grew 16 percent in December and finished 2022 almost 16 percent higher than the previous year. Only one other segment was higher for the year, which was the 100-plus horsepower units, finishing the year up 11 percent despite dropping two percent in December. In Canada, combine harvesters led the yearly sales by finishing almost 11 percent higher than in 2021 and were assisted by a 27 percent sales bump in December. Tractor sales dropped seven percent in 2022. *********************************************************************************** AFBF Establishes 2023 Policy Priorities Delegates at the American Farm Bureau Federation’s 104th annual convention adopted policies that will guide the organization’s work in 2023. Some of the key topics ranged from expanding risk management programs and improving dairy pricing transparency to battling hunger. “There’s a lot of work to do in 2023 as Congress drafts the next farm bill, and the policies set forth will guide AFBF as we work to ensure farmers and ranchers can continue to meet the growing needs of families in America and around the world,” says President Zippy Duvall. Delegates voted to modernize the farm bill by expanding baseline funding, developing more flexible disaster relief programs, and extending protection to more specialty crops. They also voted to bring more transparency to the federal milk pricing system. Voting delegates also formalized the organization’s opposition to the new Waters of the U.S. rule and a potential Mexican ban on GMO corn. *********************************************************************************** NACD Application Period for Conservation Grants The National Association of Conservation Districts announced the open application period for the 2023 Urban and Community Conservation Grant Initiative. The grants are open to any conservation district or tribe within the U.S. and in the territories. Through a partnership with the Natural Resources Conservation Service, NACD has awarded over $6.5 million to 131 conservation districts and tribes in 37 states and Puerto Rico. As part of an ongoing effort to build capacity in the community-oriented agricultural space, NACD started offering UAC planning grants worth up to $10,000 each in 2022. The planning grants allow organizations that are new to urban or community agriculture to begin early-stage development of a program to provide conservation technical assistance. NACD will continue to offer the planning grants as well as the traditional implementation grants which are more focused on the provision of technical assistance. More information and the application are available at nacdnet.org. *********************************************************************************** USDA Expands Eligibility, Improves Benefits for Disaster Programs USDA has made several updates to different conservation, livestock, and crop disaster assistance programs to give more farmers, ranchers, and tribes the opportunity to access them. Ease of access is especially important after natural disasters. The Farm Service Agency expanded eligibility and enhanced available benefits for a suite of its programs. The updates will provide critical assistance to producers who need to rebuild and recover after suffering catastrophic losses of production and infrastructure due to natural disasters. USDA updated the Emergency Conservation Program, the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish, the Livestock Forage Disaster Program, the Livestock Indemnity Program, and the Noninsured Crop Disaster Assistance Program. “As I meet with producers across the country, I’ve gained a better understanding of the ways in which our programs work and how they can be improved to better support all producers,” says Zach Ducheneaux, FSA Administrator. “Especially those who are rebuilding.” *********************************************************************************** CHS Reports First-Quarter Earnings CHS released results for its first quarter which ended on November 30, 2022. The company reported a quarterly income of $782.6 million compared to $452 million in the first quarter of fiscal year 2022. First-quarter highlights from this year include revenues of $12.8 billion compared to $10.9 billion in the first quarter of fiscal year 2022, a year-over-year increase of 17 percent. Continued robust demand for commodities, coupled with market volatility, resulted in strong earnings across all of the company’s business segments. The company’s soybean and canola processing businesses in the Ag segment benefited from strong demand for meal and oil. “The U.S. agricultural industry has benefitted from ongoing strong global demand for grain and oilseed commodities,” says Jay Debertin, president and CEO of CHS. “Our continued strong earnings are attributable to market dynamics and supported by our investments on behalf of our owners that will drive efficiency and operational improvements.” ************************************************************************************ Pro Athletes Buying Iowa Farmland Cincinnati Bengals quarterback Joe Burrow and longtime NBA player Blake Griffin are among some of the big-name athletes who are investing in Iowa farmland. They’ve joined up with more than 20 other pro athletes from the NFL, NHL, the NBA, and Major League Baseball to form an investment fund of about $5 million, which was used to buy farmland in Iowa. Other athletes in the group include Kemba Walker, formerly of the Dallas Mavericks of the NBA, and Khris Middleton of the defending NBA champion Milwaukee Bucks. The group is buying the land and will lease it to farmers who will work it and give the athletes a single-digit percentage annual return on their investment. It’s believed that the group will be looking to buy at least four more properties. They’ve already looked into several watermelon farms in Oregon that offer a higher per-acre rent than other larger farms.
| Rural Advocate News | Thursday January 12, 2023 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, the December consumer price index and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is set for 9:30 a.m., followed by USDA's Crop Production, WASDE, Grain Stocks and Winter Wheat Seedings reports -- all at 11 a.m. DTN's WASDE webinar follows at 12:30 p.m. Weather A system moving along or just north of the Ohio River on Thursday is producing thunderstorms along the river, some of which may be severe this morning. A larger threat for severe weather comes with thunderstorms developing over Mississippi that will move eastward through the rest of the day. Tornadoes and strong wind gusts are the main threats to the storms. Winds will be elevated around the system as well. More rain is moving through the West Coast, but most of California is getting a break from the recent heavy precipitation.
| Rural Advocate News | Wednesday January 11, 2023 |
Vilsack: No Compromise with Mexico on GMO Corn After a speech at the American Farm Bureau’s annual convention, Ag Secretary Tom Vilsack said there will be no compromise when it comes to the Mexican corn situation. The U.S. won’t back down or compromise on its stance against Mexico’s plan to ban imports of genetically modified yellow corn. Vilsack says the American government is supposed to reply by January 15 to Mexico’s proposal to delay the ban until 2025. U.S. Trade Representative Katherine Tai has spoken to her Mexican counterpart about the dispute. Speaking to reporters at the AFBF convention, Vilsack said that if Mexico doesn’t agree to withdraw its import ban, the White House will then push the USMCA on trade rules. Vilsack told Mexico’s President Lopez Obrador that he won’t be able to find enough non-GMO corn to import and feed the country’s livestock sector. The larger issue is about a trading system with “less friction,” not more friction. *********************************************************************************** Major U.S. Ag Groups Testify on Proposed 2023-2025 RVOs The Environmental Protection Agency held a virtual public hearing this week on its proposed Renewable Volume Obligation blending requirements under the Renewable Fuel Standard for 2023-2025. A number of the nation’s leading agriculture organizations and supporters testified during the hearing. Tom Haag, President of the National Corn Growers Association, said during testimony that they support the growth trajectory in the EPA proposal, but biofuels can contribute even more. Geoff Cooper of the Renewable Fuels Association says, “The proposed ‘Set” rule establishes a firm foundation for the future of the RFS and creates a pathway to sustainable growth in the use of low-carbon fuels.” Brooke Coleman, executive director of the Advanced Biofuels Business Council, says they appreciate EPA’s commitment to setting a multiyear RVO, curtailing Small Refiner Exemptions, and establishing reasonable growth across all categories of biofuels. “However, EPA left some tools on the shelf for promoting innovation in cellulosic biofuel,” Coleman said. *********************************************************************************** Biodiesel Group Unhappy with EPA Proposal on RVOs Clean Fuels Alliance America members testified during the Environmental Protection Agency’s “Public Hearing on RFS Standards for 2023-2025 and Other Changes.” Staff members expressed frustration with the proposed volumes for biomass-based diesel because they don’t match the volumes that are already in the market and don’t account for expected growth in capacity and feedstocks. “This proposed rule significantly undercounts existing biomass-based diesel production and fails to provide growth for investments the industry has already made in additional capacity, including for sustainable aviation fuel,” Clean Fuels CEO Donnell Rehagen said during testimony. “Clean Fuels is once again frustrated that EPA has the wherewithal needed to determine current production, the knowledge of the investments being made, and the resources to accurately determine feedstock availability, and yet proposes a no-growth scenario,” says Kurt Kovarik, Vice President of Federal Affairs. Rehagen also said EPA committed to promoting homegrown fuels but failed to follow through. *********************************************************************************** Farm Bureau Recognizes Young Farmer and Rancher Competition Winners The American Farm Bureau Federation recognized the winners of the Young Farmers and Ranchers Achievement Award, Discussion Meet, and Excellence in Agriculture Competitions. Young farmers and ranchers competed for the awards by demonstrating knowledge, achievement, and commitment to promoting agriculture. Daniel and Carla Trantham of Alabama won the Achievement Award, which recognizes young farmers and ranchers excelling in their farming and ranching operations and exhibiting superior leadership abilities. Mike Hannewald of Ohio won the Discussion Meet, which simulates a committee meeting in which active participation is required. Participants are evaluated on their ability to exchange ideas and information on a predetermined topic. Stacie Anderson of Ohio won the Excellence in Agriculture Award, which recognizes young farmers and ranchers who don’t derive the majority of their income from an agricultural operation, but who actively contribute and grow through their involvement in agriculture, leadership ability, and participation in Farm Bureau and other organizations. *********************************************************************************** NCC Releases Most Comprehensive Guidelines for Poultry Care The National Chicken Council developed the NCC Broiler Welfare Guidelines and Audit Checklist in 1999. The goal was to help poultry producers show consumers that all of the birds were being treated with respect and properly cared for during their lives. NCC recently published its 2023 update of the NCC Broiler Welfare Guidelines, which are more robust than ever before and include new parameters to improve bird welfare. The new guidelines include identifying Key Welfare Indicators like paw/footpad health, gait scoring, effective processing parameters, and minimizing leg and wing injuries. It also includes whistleblower protection, an additional focus on training programs for proper handling, a more streamlined tool for ease of auditing, and an increased focus on bird behavior, objective measures, and welfare outcomes. “With this certification, consumers can feel confident that when buying and eating chicken, the birds were well-cared for,” says Dr. Ashley Peterson, senior VP of scientific and regulatory affairs. ************************************************************************************ Center Hosts Thai Retailers and Marketers to Boost Exports A group of six cheese retailers and cheese marketing specialists from Thailand will visit the Center for Dairy Research at the University of Wisconsin in Madison on January 18-20. It’s part of a two-week program to learn about gourmet cheeses. The program, funded through a Cochran Fellowship Program Grant from the USDA’s Foreign Agricultural Service, will also involve visiting dairy farms, cheese factories, specialty cheese shops, large retail grocery chains, restaurants, and bars. The visit focuses on training and networking, helping the Thai build relationships with manufacturers, companies, distributors, and government partners. The overall objective of the program is to ultimately expand U.S. cheese exports to Thailand. Some of the activities at the Center include cheese tastings and evaluations, demonstrating activities like Swiss cheese and specialty/artisan cheese making, and lectures on the basics of cheese science and the cheesemaking process. The proposal and itinerary for the visit were first announced in February 2022.
| Rural Advocate News | Wednesday January 11, 2023 |
Wednesday Market Watch Markets The U.S. Energy Department will have its weekly inventory report at 9:30 a.m. CST Wednesday, including an update of ethanol production, previously reported at 844,000 barrels per day. Traders will keep an eye on KC wheat after prices broke below their December low Tuesday, check the latest weather forecasts and see if USDA has an export sales announcement at 8 a.m. Trading in grains may turn quiet ahead of Thursday's USDA reports. Weather A two-part storm is moving through the country Wednesday. The first piece is producing a mix of snow and freezing rain across Minnesota and Wisconsin that will push eastward and may expand showers into the Ohio Valley later in the day. The second, larger storm is pressing through the central Rockies and will exit into the Plains later in the day. This storm will start to produce scattered showers in Colorado, Kansas, and Nebraska this afternoon, with snow or rain changing to snow and a couple of inches of accumulation. The storm will miss most of the Southern Plains, but winds will increase as the cold front moves through, which is a major fire risk for this are in deep drought. Temperatures remain above normal for most of the country.
| Rural Advocate News | Tuesday January 10, 2023 |
Farm Bureau Signs MOU on Right to Repair The American Farm Bureau and John Deere signed a memorandum of understanding that ensures farmers’ and ranchers’ rights to repair their own equipment. The MOU, signed at the AFBF annual convention, is the culmination of several years of discussions between AFBF and John Deere. “This addresses a long-running issue for farmers and ranchers when it comes to accessing tools, information, and resources while protecting John Deere’s intellectual property rights and ensuring safety,” says AFBF President Zippy Duvall. “Farmers must have the freedom to choose where equipment is repaired or repair it themselves to help control costs.” David Gilmore of John Deere says the agreement reaffirms Deere’s commitment to making sure its customers have the diagnostic tools they need. The MOU creates a mechanism to address farmer concerns. John Deere commits to engaging with farmers and dealers to resolve issues when they arise and will meet with AFBF yearly to evaluate progress. *********************************************************************************** USDA Announces Major Program Improvements, Progress, and Investments Ag Secretary Tom Vilsack announced several major developments at the USDA that will help benefit farmers and ranchers across the nation. Speaking at the AFBF annual convention in Puerto Rico, Vilsack said they want to provide all farmers with the opportunities they need to continue farming, build and maintain their competitive edge, and access more, new, and better markets. He says USDA is moving forward with the Fertilizer Production Expansion Program and published comments on the importance of increased competition. The agency is also improving risk protection for beginning, veteran, limited resource, and minority producers. USDA is also investing more than $12 million to expand independent meat and poultry processing capacity in Ohio, Michigan, and Minnesota. There are new programs coming to fill the gaps in the 2020-2021 Natural Disaster Assistance and the 2020 Pandemic Assistance Programs. “By working together, we can ensure that American agriculture remains resilient,” Vilsack says. *********************************************************************************** CNH Workers Say No to Proposed Contract United Auto Workers at Case New Holland Plants in Burlington, Iowa, and Racine (ray-SEEN), Wisconsin, voted down a contract proposal on Saturday night that would have ended a strike. The president of UAW Local 807 says 45 percent voted yes, and 55 percent voted no to the offer. Internal meetings are ongoing among union members to see what the process is going to look like going forward. The union went on strike against the agriculture manufacturer on May 2 of last year. On May 19, 2022, CNH presented the union with what it called a “final, all-encompassing, comprehensive offer.” However, union members didn’t vote on this deal because union leaders didn’t feel it covered the cost of inflation. A spokesperson for CNH Industrial says the company is disappointed to learn that its recently negotiated and improved “Last, Best, and Final Offer” was not approved in the ratification vote by the union. *********************************************************************************** Poll Shows Voters Support Ethanol and RFS, Oppose EV Mandates A new survey of registered voters shows significant support for ethanol and the Renewable Fuel Standard while revealing opposition to banning liquid fuels or mandating electric vehicles. Morning Consult conducted the survey for the Renewable Fuels Association. “As the new Congress settles in and considers the future of our nation’s energy policy, these polling results demonstrate that Americans strongly support the expanded use of lower-cost, lower-carbon renewable fuels like ethanol,” says RFA President Geoff Cooper. According to the survey, almost 55 percent of the respondents support the Renewable Fuel Standard, while only 15 percent expressed opposition to the program. Meanwhile, 64 percent of respondents have a favorable opinion of ethanol, while just 18 percent said unfavorable. Half the respondents said they weren’t interested in purchasing or leasing an electric vehicle in the next three years, while 42 percent expressed interest. Sixty-six percent oppose banning the sale of liquid-fueled engines in cars. *********************************************************************************** Forum will Reaffirm Beef Industry’s Commitment to Sustainability Cattle producers are committed to protecting environmental resources, supporting communities, and creating an economically viable future through effective management practices. The “Beef Sustainability Forum” coming up on Thursday, February 2, in New Orleans, Louisiana, will help highlight the industry’s sustainability efforts. The panel discussion will be moderated by Collin Woodall, CEO of the National Cattlemen’s Beef Association. “Sustainability continues to be a top priority for NCBA and is an issue at the forefront of the entire beef industry,” says Josh White, senior executive director of producer education and sustainability with the NCBA. “This special event will include cattle producers and industry leaders from various sectors discussing strategies that improve sustainability, and how those efforts can enhance sustainability for the entire industry.” It’s a part of the annual Cattle Industry Convention and NCBA Trade show, the oldest and largest convention in the cattle business. For more information and to register, go to convention.ncba.org. *********************************************************************************** Farm Bureau Chooses Farm Dog of the Year Contest Winner The American Farm Bureau Federation picked the 2023 winner of the Farm Bureau Dog of the Year Award. Her name is “Tough,” and she’s a Border Collie owned by Denny and Donna Ashcraft of the Kansas Farm Bureau. “Farmers and ranchers love what they do, but it can be stressful, even on the best days,” says AFB President Zippy Duvall. “Farm dogs play a dual role as working dogs and companions to farm families, and that can help ease the burden.” The contest celebrates farm dogs that work alongside farmers and ranchers as they produce nutritious food for families and pets across America. Tough, the grand prize winner is 14 years old and has been with the Ashcraft family since the age of two. Tough injured her spinal cord and was paralyzed for a week when she was seven years old. The Border Collie recovered and spends her days working livestock.
| Rural Advocate News | Tuesday January 10, 2023 |
Tuesday Watch List Markets On Tuesday, Federal Reserve Chairman Jerome Powell is scheduled to speak in Sweden, otherwise there are no significant events on Tuesday's docket. Two days ahead of the next WASDE report, trading may be quiet and traders will be watching the latest weather forecasts, as well as any developing news. Weather A two-part system is moving through the West on Tuesday. The leading wave will move along the U.S.-Canada border tonight with some showers across the northern tier of the country. The second part will continue to pound California, the southern Great Basin, and the Central Rockies with even more precipitation and a chance for a few severe thunderstorms. Otherwise it remains quite warm by January standards across the country.
| Rural Advocate News | Monday January 9, 2023 |
Food Prices Drop in December but 2022 till Significantly Higher than 2021 The United Nations Food and Agricultural Organization’s Food Price Index dropped during December, but 2022 food prices were 18 percent higher than in 2021. The December index averaged 132.4 points, 2.6 points below November, the ninth-straight monthly decline. The December drop was driven by a steep decline in the international vegetable oil price and declining cereal and meat prices. However, that was counterbalanced by rising prices in sugar and dairy. For 2022, the index averaged 143.7 points, 18 points or 14.3 percent higher than the 2021 index. The Vegetable Oil Price Index averaged 144 points in December, down more than 10 points from November and its lowest level since February 2021. The Cereal Price Index averaged 147.3 points during December, down 2.9 points from November but was almost seven points higher than December 2021. The December dairy index was up 1.5 points, and the sugar index was 2.8 points higher. *********************************************************************************** Vilsack in Puerto Rico and Will Address AFBF Convention Ag Secretary Tom Vilsack will be in Puerto Rico on January 9 and 10 and speak at the American Farm Bureau Federation’s Annual Convention. He’ll also engage in a series of events involving the USDA’s commitment to fostering economic development, supporting disaster recovery, increasing the island’s resilience against future storms, supporting disaster recovery, and creating new market opportunities for the country’s producers. At various events throughout the trip, Vilsack will be joined by Puerto Rico’s Resident Commissioner, Secretary of Agriculture, Secretary of Economic Development and Commerce, as well as various elected officials. He’ll also hold discussions with local officials, producers, and stakeholders about USDA efforts to support the country’s rural communities, climate-smart agriculture, disaster assistance, and other issues important to Puerto Rico’s population. He’ll also meet with Puerto Rico’s Governor to talk about USDA and the Puerto Rican government’s efforts to collaborate on supporting the island’s producers and rural communities. *********************************************************************************** Report Shows Global Biofuel Demand to Increase Over 20 Percent by 2027 The International Energy Agency released its Renewables 2022 Analysis Report in December, and it shows a growing global demand for biofuels. Renewables 2022 includes extensive analysis of the renewable energy sector, including developments and trends for transportation. “In this most recent IEA report, total global biofuel demand is estimated to increase more than 20 percent between 2020 and 2027,” says Isabelle Ausdal, manager of global ethanol policy and economics with the U.S. Grains Council. “World ethanol consumption is projected to rise in an accelerated case scenario.” She also says this reinforces the U.S. industry’s recognition of ethanol’s importance as a tool for countries to accelerate their greenhouse gas emissions reductions and underscores the importance of scaling up technologies like carbon capture, utilization, and storage to reach net zero carbon intensity. The report details increasingly ambitious energy targets in the European Union, growth in ethanol consumption in Brazil, and biofuel blending in India. *********************************************************************************** World’s First Honeybee Vaccine Gets Approved Pollinators are a big part of success in world agriculture. The USDA granted a conditional license for a vaccine to protect the country’s honeybees from foulbrood disease. Earth Dot Com says the bacterial infection weakens and kills honeybee colonies and has no treatment. The vaccine was developed by Dalan Animal Health and brings hope for a weapon against a disease that regularly ravages colonies that are highly important to food pollination. In parts of the U.S., the foulbrood disease has been found in over a quarter of honeybee hives. Beekeepers typically destroy and burn infected colonies and administer antibiotics to stop the further spread of the disease. The vaccine works by incorporating some of the bacteria into the royal jelly fed to the queen by worker bees. After ingesting the jelly, the queen will gain some of the vaccine in her ovaries and developing bee larvae will have immunity to foulbrood. *********************************************************************************** USDA Reports Shows Increasing Use of Cover Crops Cover crops are an increasingly popular management practice among many U.S. farmers. The goal is to provide seasonal living cover between their primary commodity cash crops. Farmers plant those cover crops in the fall to provide winter cover for soil that otherwise would be bare. The USDA’s Agricultural Resource Management Survey says over the past ten years, fall cover crop adoption has continued to grow. On fields growing corn for grain, 0.6 percent of the acreage used a fall cover crop before the 2010 crop. By 2016, 5.5 percent of the corn-for-grain acreage had a preceding fall cover, and by 2021, 7.9 percent of corn-for-grain acreage followed a fall cover crop. This represents a 44 percent increase in fall cover crop adoption on corn-for-grain fields between 2016 and 2021. The growth in the adoption of cover crops on cotton fields is similar, with a 46 percent increase between 2015 and 2019. *********************************************************************************** Ethanol Production Hits Lowest Level Since 2020 The Energy Information Administration says ethanol output dropped to the lowest level in more than two years, while inventories were down slightly during the last week of 2022. Production dropped to an average of 844,000 barrels per day. That’s down from 963,000 barrels a day, on average, during the previous week and the lowest level since the week ending on June 12, 2022. Losses were broad-based across all regions but one in the U.S. The Midwest, which produces the most ethanol in the country, saw its output plunge to an average of 794,000 barrels a day from 906,000 a week earlier. That’s the lowest since the seven days ending on May 29, 2020. Production on the East and West Coasts each dropped an average of 3,000 barrels a day from the prior week. The only increase in ethanol production came in the Gulf Coast region. Inventories were down slightly at 24.44 million barrels.
| Rural Advocate News | Monday January 9, 2023 |
Monday Watch List Markets Traders return from the weekend checking the latest weather forecasts, especially in South America and surveying the news. USDA's weekly report of export inspections is due out at 10 a.m. CST and is the only significant report of the day. Weather The West stays active on Monday with another system moving through California, bringing heavy precipitation to a lot of areas, including the Central Valley and Sierras for building snowpack as drought conditions are turning around. East of the Rockies it will be a quiet day with rather mild temperatures for January.
| Rural Advocate News | Friday January 6, 2023 |
Senate Ag Chair Not Running for Reelection in 2024 Senate Ag Committee Chair Debbie Stabenow of Michigan announced she won’t be running for reelection in 2024. “Inspired by a new generation of leaders, I’ve decided to pass the torch in the U.S. Senate,” Stabenow says in a statement. “I’m incredibly grateful for the trust the people of Michigan have placed in me.” The four-term senator says a big part of her decision was stepping aside to make room for new voices. Between now and 2024, Stabenow says she’ll concentrate on passing a new farm bill before she retires. “The farm bill determines our nation’s food and agriculture policies,” she says. “It’s also a key to protecting our land and water and creating jobs in rural and urban communities.” Stabenow has played a big role in several farm bills. Her decision will increase pressure to pass a new farm bill while she’s in office rather than extending the current legislation. *********************************************************************************** Farmers National Company Releases Final Year Land Sales Report Farmers National Company says land market momentum that began late in 2021 only picked up the pace into 2022. Competition for high-quality cropland resulted in both record sales and overall increases in land values. Strong demand in all of the country’s regions brought significant opportunities to landowners interested in capitalizing on the current land market. In most cases, landowners selling property experienced never-before-seen values for their farmland. The final results set records in several states and increased year-to-year values between 20 and 34 percent in the Corn Belt. Farmers National says the traditional local farmer-operators are the successful buyers of land in 75 percent of their transactions. “We’re seeing a true supply-demand scenario,” says Paul Shadegg, senior vice president of real estate operations. “There are simply more buyers willing to bid on the limited amount of land coming to market.” Commodity markets are the main driver in higher land values. *********************************************************************************** USDA Investments to Strengthen the U.S. Meat Supply Chain USDA Secretary Tom Vilsack announced an investment of $9.6 million across the country and taking several other steps to help farmers, ranchers, processors, and rural businesses diversify the meat supply. “We’re putting the needs of farmers, ranchers, and consumers at the forefront of our work to strengthen the resiliency of America’s food supply chain while promoting competition,” he says. “USDA is working on an approach to coordinate ways to deliver more opportunities and fairer prices for producers.” He also says the goal is to give people access to healthier foods, eliminate bottlenecks in the food supply chain, and ultimately lower prices for consumers. Vilsack announced a total of 25 new investments to increase independent meat processing capacity. The investments include 23 value-added Producer Grant Program awards totaling $3.9 million to help producer-owned companies process and market new products. USDA is also investing $5.7 million in two companies to support food processing infrastructure. *********************************************************************************** Union Taking CNH’s Last Offer to Striking Workers for Saturday Vote The United Auto Workers announced in a news release that they’ve decided to bring CNH Industrial’s “last, best, and final offer” to its striking workers for a vote. Farm Equipment Magazine says the workers are expected to vote on Saturday, January 7. However, Ag Equipment Intelligence reached out to CNH Industrial for comment but did not hear back. In 2021, when 10,000 John Deere employees went on strike, Deere referred to its third offer to the union as its “last, best, and final offer,” which James Cooney of Rutgers University said at the time that “this could signify Deere is at an impasse in negotiations. “That’s not an agreement with the company when saying, “Hey, this is our last, best, and final offer,’” Cooney says. “A union may take that back to the membership, but, on the other hand, it may choose not to, especially if it’s perceived as a threat.” *********************************************************************************** Winter Wheat 2023-2024 Planting Estimates on January 12 The National Agricultural Statistics Service will publish the first official estimate of the 2023-2024 winter wheat crop planted area on January 12. U.S. Wheat Associates and America’s wheat-importing customers will be watching trade estimates before the report is issued. Wheat analyst Jeffry McPike says his group expects a planted area forecast of 35.7 million acres. If realized, that’s a seven percent increase over NASS’s final 2022 estimate. The Economic Research Service has documented a general downward trend in America’s wheat plantings during the last two decades due in part to lower returns, changes in government programs, and increased competition in global wheat markets. However, at planting time in 2022, the relatively high prices for hard red winter, soft red winter, and white winter wheat all provided an incentive to plant more wheat. Pre-report predictions range between 34-36 million acres, higher than the 2022 final NASS crop estimate of 33.27 million acres. *********************************************************************************** Wheat Country is Still Very Dry Kansas, the country’s biggest hard-red winter wheat producer, is still very dry. USDA data says topsoil moisture in the state was little changed from January 1 through the end of November 2022. About 43 percent of the state was very short on topsoil moisture and 26 percent was listed short on January 1. Twenty-nine percent of the state had adequate topsoil moisture and only two percent had a surplus. That compares with 48 percent very short, 25 percent short, 26 percent adequate, and just one percent held surplus moisture on November 29, the last time the government issued a crop progress report. Oklahoma, the country’s number two HRW producer, only saw .16 inches of rainfall in the panhandle during December. Topsoil and subsoil moisture was listed as “mostly adequate to short.” Arkansas, one of the country’s key soft-red winter wheat growers, saw moisture conditions improve with 60 percent surplus topsoil moisture.
| Rural Advocate News | Friday January 6, 2023 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Friday, the same time the Labor Department will release nonfarm payrolls and the U.S. unemployment rate for December. A report on U.S. factory orders for November is set for 9 a.m. Traders will keep an eye on the latest weather forecasts and outside markets, which have been a bearish influence this week. Weather A system that brought heavy rain and snow to the country this week is finally leaving through the Northeast on Friday. Most of the country east of the Rockies is quieter today. But a system moving through the Rockies will exit into the Central Plains tonight and produce some showers into Saturday. Showers will likely to be rather weak except around the Gulf Coast where thunderstorms will be possible over the weekend.
| Rural Advocate News | Thursday January 5, 2023 |
United States and Taiwan to Hold Trade Negotiations This Month The United States and Taiwan will hold an in-person negotiating round for the U.S.-Taiwan Initiative on 21st-Century Trade in Taipei. The negotiations are under the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States. The next round of talks is scheduled for January 14-17. The U.S. Trade Representative’s Office will lead the U.S. delegation through Assistant United States Trade Representative Terry McCartin and include representatives from several other U.S. government agencies. The negotiation process started in June 2022, launching the U.S.-Taiwan Initiative on 21st-Century Trade. The initiative is intended to develop concrete ways to deepen the economic and trade relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for our workers and businesses, including through new trade agreements. The two sides last met in November, holding two days of discussion in New York. *********************************************************************************** USDA Announces Conservation Stewardship Program The next deadline for Conservation Stewardship Program applications to be considered for funding this year is February 10, 2023. Through CSP, USDA’s Natural Resources Conservation Service helps farmers, ranchers and forest landowners earn payments for expanding conservation activities while maintaining agricultural production on their land. CSP also encourages the adoption of new technologies and management techniques. Changes in the 2018 Farm Bill authorize NRCS to accept new CSP enrollments from 2020‒2023 and makes additional improvements to the program. NRCS now enrolls eligible, high-ranking applications based on dollars rather than acres. Higher payment rates are available under the 2018 Farm Bill for certain conservation activities, including cover crops and resource-conserving crop rotations. NRCS now provides specific support for organic and for transitioning to organic production activities through CSP. While applications are accepted throughout the year, interested producers should submit applications to their local NRCS office by the deadline to ensure they are considered for 2023 funding. *********************************************************************************** Esteban Sworn-in as USDA Undersecretary for Food Safety Agriculture Secretary Tom Vilsack welcomed the swearing-in of Jose Emilio Esteban as the Undersecretary for Food Safety at the Department of Agriculture. Vilsack says, “Dr. Esteban has a long and well-documented commitment to food safety and public health.” Esteban was appointed Chief Scientist of the USDA Food Safety and Inspection Service in August 2018. Esteban joined the Office of Public Health Science at FSIS in 2002. In 2008, he was appointed as the FSIS Science Advisor for Laboratory Services, where he harmonized the operation of all three FSIS laboratories. Before joining FSIS, Esteban worked in several positions at the Centers for Disease Control and Prevention. Esteban received his Doctorate in Veterinary Medicine from Mexico’s National University. Vilsack adds, “I am confident that Dr. Esteban’s leadership and experience is the right combination to advance our commitment to maintaining public health and reducing foodborne illness.” *********************************************************************************** Bureau of Land Management Seeks Input on Solar Energy Program The Bureau of Land Management this week announced a public meeting to solicit feedback on utility-scale solar energy planning. The Bureau of Land Management is considering updates to its 2012 Western Solar Plan that included six southwestern states—Arizona, California, Colorado, Nevada, New Mexico, and Utah. BLM is seeking comments on expanding its solar planning to include five more states: Idaho, Montana, Oregon, Washington, and Wyoming. The first meeting, scheduled January 18 in Sacramento, California, is one of a series being held in January and February in various western states. BLM Director Tracy Stone-Manning says, "The BLM is committed to expanding renewable energy development on public lands." The public comment period will remain open for 15 days after the last public scoping meeting, or February 6, whichever is later. The Notice of Intent to update the BLM's 2012 solar programmatic environmental impact statement was published in the Federal Register on December 8, 2022. Learn more about the meetings at www.blm.gov. *********************************************************************************** Clean Fuels welcomes Eight New Members As interest in low-carbon fuels gains momentum, Clean Fuels Alliance America continues to grow stronger and more diverse by adding new members. As Clean Fuels prepares for the Clean Fuels Conference in Tampa later this month, the association welcomes eight new companies that joined the association the last year. Clean Fuels CEO Donnell Rehagen says, "The addition of these members demonstrates the value they see in being part of our trade association and the ongoing expansion of this industry." The list of new members includes DSM - a purpose-led science-based global company specializing in human and animal health and nutrition solutions. DSM's purpose is to create brighter lives for all. Another new member is the National Oilheat Research Alliance, authorized by Congress in 2000 to provide funding that would allow the oil heat industry to provide more efficient and more reliable heat and hot water to American Consumers. *********************************************************************************** AM/FM Radio in Vehicles: A Pay to Play Feature? At the Consumer Electronics Show this week, Steve Koenig of the Consumer Technology Association showcased new potential trends to the media before the start of the show. One potential trend, according to Koenig, is automakers charging extra for AM/FM radios in cars. Koenig says automakers may move to a Features as a Service offering for AM/FM radios, allowing automakers to enable or disable features based on whether the car owner is paying for the services. Automakers claim AM radio signals face electromagnetic interference generated from electric cars. Radio Ink reports, "Automotive companies are salivating at the opportunity to capitalize on car features as services that will be subscription based.” In December, Senator Ed Markey, A Massachusetts Democrat, urged automakers to maintain free broadcast radio in future electric vehicles. Markey said, “AM/FM broadcast radio remains the most dependable, cost-free, and accessible communication mechanism for public officials to communicate with the public during times of emergency.”
| Rural Advocate News | Thursday January 5, 2023 |
Thursday Watch List Markets At 7:30 a.m. CST Thursday, reports on U.S. weekly jobless claims and the U.S. trade deficit for November will be out, along with an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly natural gas storage report is set for 9:30 a.m., followed by weekly energy inventories at 10 a.m., including ethanol production. At some point Thursday morning, USDA will also provide export data from the Census Bureau for November. Weather A low-pressure center continues to spin across the Midwest with areas of light snow falling throughout the day. It's much quieter elsewhere east of the Rockies with generally mild temperatures for this time of year. A system moved into California and will spread showers throughout the West on Thursday, though will be weaker as it moves through the rest of the country Friday through the weekend.
| Rural Advocate News | Wednesday January 4, 2023 |
Farmer Sentiment Rebounds at Year End on Stronger 2022 Income Producer sentiment improved sharply in December as the Purdue University-CME Group Ag Economy Barometer Index reading of 126 was 24 points higher than a month earlier. Although U.S. farmers were more positive regarding both the current situation and the future, the biggest improvement was in their assessment of current conditions. The Current Conditions Index reached 135, 37 points higher than in November, while the Future Expectations Index hit 122, 18 points above a month earlier. The improvement in current sentiment was motivated by producers' stronger perception of current financial conditions on their farms as the Farm Financial Performance Index climbed 18 points above the prior month's reading to reach 109, which was the only time in 2022 that the index was above 100. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated monthly from 400 U.S. agricultural producers' responses to a telephone survey. This month's survey was conducted from December 5-9, 2022. *********************************************************************************** World’s First Agri-Focused Satellite Launches The first of seven satellites for agriculture launched into space Tuesday by SpaceX. Built by Dragonfly Aerospace, the satellite is part of the Transporter-6 mission for customer EOS Data Analytics. The remaining six satellites of the constellation will be deployed over the next three years. The EOS Data Analytics project is the world's first agriculture-focused satellite constellation providing the industry with high-quality data to support efficient and sustainable practices. Images obtained from Dragonfly's EOS SAT-1 will deliver information for harvest monitoring, application mapping, seasonal planning and assessments that analyze information such as soil moisture, yield prediction and biomass levels. The data will support growers with reducing carbon dioxide emissions and help them to develop sustainable agricultural methods. The company says the information will have important environmental benefits for the planet and help prevent natural habitats from being diminished for crop growth and maintain biodiversity. *********************************************************************************** NCGA Expresses Disappointment in EPA WOTUS Rule The National Corn Growers Association Tuesday expressed disappointment regarding the final Waters of the United States rule under the Clean Water Act. The Environmental Protection Agency and Army Corps of Engineers released the final rule on December 30. NCGA says the rule was released as the U.S. Supreme Court prepares to decide a case, Sackett vs. EPA, which will provide more clarity on the issue. NCGA President Tom Haag says, "The Court's ruling could negate major elements of this WOTUS rule and will create even more uncertainty for farmers.” NCGA submitted comments to EPA and encouraged corn growers to do the same as the rule was being considered. The group also participated in regional hearings held by EPA. Haag says that as farmers, “we are the ones who will feel the impact of this rule,” adding, “Yet, it appears that our comments fell on deaf ears.” *********************************************************************************** NMPF: WOTUS Unclear and Overly Complicated National Milk Producers Federation President and CEO Jim Mulhern calls the new Waters of the U.S. Rule "cumbersome, unclear and overly complicated." NMPF released the response Tuesday following the end-of-year announcement of the WOTUS final rule by the Environmental Protection Agency last week. The organization says that because the EPA's most recent iteration fails to resolve a 50-year struggle to define a water body subject to federal regulation under the Clean Water Act, NMPF members will face continued uncertainty as they attempt to comprehend and comply with unclear regulations. Mulhern says it's important to note that EPA's latest iteration is not a complete return to the unworkable rule adopted in 2015. Depending on the outcome of the Sackett case this spring, Mulhern adds, "it may be time for Congress to step in in a bipartisan manner to provide clarity regarding which bodies of water are under the jurisdiction of the Clean Water Act." *********************************************************************************** NOAA Proposes Seafood Import Monitoring Expansion The National Oceanic and Atmospheric Administration last week announced a proposed rule to expand the Seafood Import Monitoring Program. The risk-based program is for targeted species of seafood imported into the United States. NOAA says expanding the program would increase the number of species included in the program from approximately 1,100 individual species to approximately 1,600 individual species. The program currently establishes reporting and recordkeeping requirements for nearly half of all U.S. seafood imports to combat illegal, unreported and unregulated fishing and misrepresented seafood from entering U.S. commerce. The proposed expansion includes red snapper and tuna, to include all species in the snapper family and additional tunas, to minimize the risk of mislabeling and product substitution that is used to bypass requirements. In addition, the rule proposes to add cuttlefish and squid, eels, octopus, queen conch and Caribbean spiny lobster to the program. The rule also proposes to make additional modifications and improvements. *********************************************************************************** Arctic Blast Jolts Gas Prices Higher For the first time in two months, the nation's average gas price increased, rising 12.3 cents from a week ago to $3.17 per gallon. The national average is down 22.5 cents from a month ago and 9.5 cents per gallon lower than a year ago. The national average diesel price fell 1.4 cents in the last week and stands at $4.67 per gallon. GasBuddy's Patrick De Haan says, "Extremely cold weather led to many refinery issues, shutting down over a million barrels of refining capacity, pushing wholesale prices up." While the jump at the pump will likely be temporary as most refiners get back online after cold-weather-related issues, some regions, like the Rockies, may see more price increases than others. Additionally, China's reopening plans inspired markets that global oil demand will start to recover, as China's nearly three-year Covid-zero policies appear to be coming to an end.
| Rural Advocate News | Wednesday January 4, 2023 |
Wednesday Watch List Markets The Institute of Supply Management's index of U.S. manufacturing for December is set for 9 a.m. CST Wednesday. Minutes from the latest Federal Reserve meeting will be out at 1 p.m. As usual, traders will check the latest weather forecasts, watch for any news of an export sale and likely be wary after Tuesday's sell-off in commodities. Weather A storm system continues to spin up around the Upper Midwest with continued light to moderate snow Wednesday. Meanwhile, the cold front will push eastward with a band or two of scattered showers from around the Appalachians eastward. Some additional severe weather will possible across the Southeast, a continuation of strong storms from Tuesday. Meanwhile, another storm will move into the West Coast.
| Rural Advocate News | Tuesday January 3, 2023 |
EPA Finalizes WOTUS Definition The Environmental Protection Agency and the Army Corps of Engineers announced a final rule establishing the definition of “Waters of the United States.” They say the rule reduces uncertainty from consistently changing regulatory definitions, protects people’s health, and supports economic opportunity. The final rule restores essential water protections that were in place before 2015 under the Clean Water Act for traditional navigable waters, the territorial seas, interstate waters, and the upstream water resources that significantly affect those waters. “Following extensive stakeholder engagement, EPA is delivering a durable definition of WOTUS that safeguards our nation’s waters, strengthens economic opportunity, and protects people’s health,” says EPA Administrator Michael Regan. “It also provides greater certainty for farmers, ranchers, and landowners.” Michael Connor, Assistant Secretary of the Army for Civil Works, says, “This definition provides clarity long desired by farmers, industry, environmental groups, and other stakeholders. It also allows for more effective rule implementation.” *********************************************************************************** Group Reacts to New WOTUS Rule The National Cattlemen’s Beef Association responded to the newly-Published Waters of the U.S. Rule. The group says farmers and ranchers have dealt with the whiplash of shifting WOTUS definitions for far too long. “While the new rule retains longstanding exclusions for certain agricultural features, it still creates new uncertainty for farmers, ranchers, and landowners,” says NCBA Chief Counsel Mary-Thomas Hart. NCBA previously asked the Environmental Protection Agency to retain agricultural exclusions for small, isolated, and temporary water features that commonly appear on farms and ranches. The new rule fails to clearly exempt isolated and ephemeral features from federal jurisdiction and relies on “case-by-case” determinations to assess whether a feature is federally regulated. Hart says the timing of the rule couldn’t be worse as the Supreme Court is currently considering Sackett v. EPA, which would provide much-needed clarity to the WOTUS definition. “Today’s rule seeks to directly preempt the Supreme Court,” she says. *********************************************************************************** Two Selected for AFBF Top Honors The American Farm Bureau Federation will present its highest honors to former Executive Vice President Dale Moore and former North Carolina Farm Bureau President Larry Wooten. The two will receive the Distinguished Service Award and the Farm Bureau Founders Award, respectively, during the 2023 AFBF annual convention in Puerto Rico. Farm Bureau established the Distinguished Service Award to honor individuals who’ve devoted their careers to serving the interest of American agriculture. The Founders Award is presented in recognition of outstanding achievements and work in the interest of Farm Bureau. Moore, a Kansas native, has been a champion of agriculture in the public and private sectors for more than 40 years. Wooten’s Farm Bureau career spans more than 50 years, peaking when he was elected president of the NCFB in 1999, a position he held until 2019. The American Farm Bureau’s annual convention is January 6-11 in San Juan, Puerto Rico. *********************************************************************************** Ethanol Production Hits Lowest Level in Two Months The Energy Information Administration says ethanol production plunged in the seven days that ended on December 23 to the lowest level in more than two months while inventories rose. Output during the week averaged 963,000 barrels a day, down from 1.029 million barrels a week earlier. The EIA report says that’s the lowest level since the week ending on October 7. The Midwest produces the most ethanol in the country and saw production drop to 906,000 barrels a day, on average, down from 975,000 the previous week. The Midwest drop was the entire loss during the week as production on the East Coast and in the Rocky Mountain regions was steady. West Coast output rose by an average of 1,000 barrels a day to 9,000 for the week. Ethanol stockpiles during the week rose to 24.63 million barrels. That’s the highest level of inventory since the seven days ending on April 8. *********************************************************************************** Taylor Sworn In as USDA Undersecretary Ag Secretary Tom Vilsack is pleased that Alexis Taylor was finally sworn in last week as the U.S. Department of Agriculture’s Undersecretary for Trade and Foreign Agricultural Affairs. Vilsack says Taylor has had a deep-rooted and impressive career working on matters related to agriculture, trade, and enhancing as many export opportunities as possible for America’s farmers and ranchers. “She’s not only spent her career serving the American people through her work in American agricultural and trade policy but also as a veteran of the U.S. Army,” Vilsack says. “I am confident Alexis is the right person to lead as we continue to address global food security challenges, promote American exports to new and existing markets across the globe, and strengthen trade relationships with our partners.” The secretary also looks forward to working with Taylor to help the agency better serve farmers and ranchers and link America’s agriculture producers to expanded global opportunities. *********************************************************************************** Important Ag Provisions in the Omnibus Bill President Biden signed the omnibus spending package into law that diverts a government shutdown and keeps it running until September 30, 2023. The bill with more than 4,000 pages contains many notable items important to U.S. farmers and ranchers. The bill includes $3.7 billion in disaster funding for crop and livestock losses due to drought and other problems in 2022. There is $350 million allocated for rice producer payments to compensate for the drop in revenue this year, as well as $100 million provided for payments to cotton merchandisers as a result of losses related to COVID or supply chain disruptions. Livestock Mandatory Reporting is extended until September 30, 2023. It also includes price transparency as the USDA and the Justice Department are to analyze issues regarding transparent meat pricing and price discovery for cattle producers. Raw or processed chicken imported from China can’t be used in the federal school lunch program.
| Rural Advocate News | Tuesday January 3, 2023 |
Tuesday Watch List Markets Back from a three-day weekend and starting a new year, traders will get familiar with the latest weather forecasts and any news from over the New Year weekend. Many will pause at 8 a.m. CST to see if USDA has an export sale announcement and check in on USDA's weekly report of export inspections at 10 a.m. CST. Weather A stronger winter storm has moved into the middle of the country for Tuesday. A band of wintry mix has developed from Nebraska into the Upper Midwest and will drop some heavy snow throughout the day as well as areas of significant freezing rain. Farther south, the cold front to the system will bring risks for severe thunderstorms from the Lower Mississippi River to the southern Appalachians. The rest of the Midwest continues to see areas of rain, being heavier along the Ohio River.
| Rural Advocate News | Friday December 30, 2022 |
U.S. Beef Exports to East Asia on a Record Pace The USDA’s Foreign Agricultural Service released a report titled “U.S. Beef Exports to East Asia on a Record Pace.” Despite economic uncertainties brought on by COVID, continued global supply chain challenges, and a competitive global beef market, American exports to East Asia were outstanding in the first half of 2022 in terms of value and volume. The report says, “During the first three quarters of 2022, U.S. beef exports to East Asia, including Korea, Japan, China/Hong Kong, and Taiwan, were a record $6.6 billion.” That’s a 22 percent increase on a value basis from last year’s exports worth $5.4 billion. “On a volume basis, the exports were up 6.4 percent,” the report says. “Despite surging food prices in recent months, higher-volume shipments indicate a continued demand for beef products.” It also shows that East Asia’s relatively stable middle class has high disposable income and is willing to absorb the rising costs. *********************************************************************************** What 2023 Will Mean for Ethanol Margins America’s ethanol industry saw its production margins get weaker late in 2022. MarketWatch says the ethanol industry outlook will depend on multiple factors. Margins have recently dropped below the same time last year. Iowa State University’s Center for Agricultural and Rural Development says the average return over operating costs at a typical dry-mill ethanol plant was 34.64 cents per gallon. That’s over one dollar lower than the same time last year when the center put the average margin at $1.38 per gallon. The university says the average ethanol price in Iowa was at $2.44 a gallon, 85 cents lower year to year, while the average price of corn was $6.82 a bushel, about $1.10 higher than a year ago. Some of the key issues for the U.S. ethanol industry to watch include Renewable Volume Obligations (RVOs), Carbon Capture Projects, the future of Small Refinery Exemptions, and fewer limits on E15 sales. *********************************************************************************** Baby Formula Imports Face Tariffs Again in 2023 Baby formula imports into the U.S. will be subject to tariffs again in 2023 as the exemptions implemented during a nationwide shortage are scheduled to expire. Reuters says the shortage began during supply chain issues brought on by COVID, and those issues began to get worse in February of this year. During that month, the biggest U.S. supplier recalled some products and closed down a manufacturing plant after reporting bacterial infections. Responding to the crisis, American health regulators relaxed import policies, and President Biden invoked the Cold War-era Defense Production Act to rebuild lagging supplies. Congress made the tariff waivers temporary as part of a deal to pass the measure quickly. Last August, Walmart and Target Corporation, two of the nation’s biggest retailers, said supplies of baby formula were improving. The maker of the biggest brand in the market, Enfamil, says formula shortages will likely persist until the spring of 2023. *********************************************************************************** USDA Invests Over $9 Million in Bioproduct Development USDA is investing $9.5 million to support the scale-up of sustainable bioproduct manufacturing in the U.S. Three projects are getting funded through the National Institute of Food and Agriculture’s Bioproduct Pilot Program. The program presents an opportunity to spur economic activity in the nation’s rural areas while lowering commercialization risks associated with bringing biobased products to market. “Adopting a more circular economy ensures that wealth and other economic benefits in the form of jobs and other opportunities are created, and stay, in rural communities,” says Ag Secretary Tom Vilsack. “We must support and incentivize practices like these because that’s what consumers want, and what farmers and our planet need.” The Pilot Program’s exploration into bioproducts accelerates USDA’s efforts to develop circular bio-economies, where agricultural resources are harvested, consumed, and regenerated in a sustainable manner. NIFA says each of the recommended projects can help bridge the gap between invention and the marketplace. *********************************************************************************** The Second Annual Ag Transporters Conference is in March Transportation Go! is a conference for soybean, grain, and other transportation issues in the Upper Midwest. It will take place March 15-16, 2023, in Omaha, Nebraska. It’s the second annual transportation conference after a successful debut event in Milwaukee earlier this year. “This is an active conference, not a passive one,” says Eric Wenberg, executive director of the Specialty Soya and Grains Alliance, which organizes and hosts the event. “We encourage discussion and expect real dialogue to take place during every segment of the agenda.” He also says there are many challenges in agricultural transportation, and this conference brings together smart and experienced people from different avenues of the supply chain into the same room to take on those challenges together. Omaha, a key ag transportation hub, will bring together the industry’s top stakeholders, from boots-on-the-ground commodity growers to traders and shippers of specialty field crops. For more information, go to transportationgo.com. *********************************************************************************** American Lamb Growers Looking Ahead to 2023 Trends The “2023 Meat Trends to Watch Report” says understanding the overarching trends in American meat consumption can help keep meat in the mix. “There are challenges ahead for the lamb industry, but there are also opportunities ahead,” says Peter Camino, American Lamb Board Chair. “But the entire industry will need to make changes to improve our competitiveness and profitability.” The report covers trends like economic pressures at the meat case, noting that while many are seeking less expensive cuts at the meat case, others are more open to experimenting in the kitchen. Others may also trade up at the counter instead of dining out. The report also covers sustainability, noting that it’s critical for products and businesses to talk to customers about their sustainability efforts. Other important topics in the report include health and wellness, convenience, and technology. The ALB is closely watching these trends and how they influence consumers.
| Rural Advocate News | Friday December 30, 2022 |
Friday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CST Friday, the only significant report of the day. Friday is a full day of trading, ahead of a three-day weekend for celebrating the New Year. Traders will keep up with the latest weather forecasts and watch for a possible export sales announcement at 8 a.m. CST. Weather A cold front will be moving slowly east from the Delta to the eastern Midwest on Friday. A band of showers and some thunderstorms has formed along the front, which will move into the Southeast and toward the Appalachians tonight. Some minor flooding may occur over the South as the rain moves through. Somewhat cooler temperatures are filling in behind the front back to the Rockies, but most areas are still above normal for this time of year.
| Rural Advocate News | Thursday December 29, 2022 |
USDA Economist Not Worried About Potential Ag Trade Deficit USDA is forecasting an agricultural trade deficit in 2023. While deficits have happened in the past, the agency has never forecast one in advance until this year. The agency says ag exports are projected to reach $190 billion next year, but imports are projected to rise to $199 billion. Seth Meyer, chief economist with USDA, says an ag trade deficit isn’t a major cause for concern. “I’m of the opinion that having both rising exports and imports is a good thing,’ he says. “Farmers can sell their products at a good price while consumers can shop for what they want.” Ag exports are forecast to set another record during the fiscal year 2022 at $196.4 billion. If realized, that number would top the previous record of $177 billion in 2021. American exports currently face major pressure from the strong dollar value making U.S. products more expensive in the world’s markets. *********************************************************************************** Egg Prices Double During the Past Year Eggs are more expensive than they were last year. Marketplace says the Bureau of Labor Statistics reports the price of a dozen Grade A eggs jumped from $1.82 last year to almost $3.60 in 2022. While part of the increase is due to the rising price of chicken feed, the real culprit is highly pathogenic avian influenza. It’s infected more than 57 million hens this year, starting in the spring and continuing to flare up through the rest of 2022. “Spring was the first time we had egg prices spike,” says Daniel Sumer, an ag economics professor at the University of California-Davis. He says eggs are a staple for many people and can’t be cut back on when the price rises. When prices go up, people tend to buy them anyway. “That drives the price higher and higher,” he says. “And that has to happen because the supplies are more limited.” *********************************************************************************** Omnibus Bill Included Pesticide Registration Improvement Act The recently-passed omnibus spending legislation contained the reauthorization of the Pesticide Registration Improvement Act, something important to CropLife America. The organization says it will strengthen and improve the Environmental Protection Agency’s pesticide registration process. The EPA’s scientists work diligently to comply with the multiple laws that govern pesticide registration, but, in recent years, the agency has fewer available scientists to do that work,” says Chris Novak, President of CLA. “The reauthorization of PRIA is a first step in improving the efficiency of the pesticide registration process and in providing more certainty for farmers, consumers, and CropLife’s member companies that EPA will meet its statutory obligations.” PRIA provides critically needed resources for the EPA’s Office of Pesticide Programs. The increased funding coupled with a variety of process and technology improvements, will allow EPA to increase staffing and better meet pesticide registration timeframes to give farmers the tools they need to manage pests. *********************************************************************************** Pork Leadership Institute Announces Class of 2023 The National Pork Producers Council and the National Pork Board are proud to announce that 19 pork producers from across the country have been selected for the Pork Leadership Institute’s class of 2023. Each year, the organizations select a leading group of producers to participate in the PLI program. Staff in both the NPPC and NPB work together with state pork association executives and field reps to identify key individuals from across America. The comprehensive, year-long process consists of five sessions that include learning about the federal legislative and regulatory processes, the importance of international trade, the roles of the national and state pork associations, and modern-day issues facing producers. “PLI is vital to the success of pork producers because it develops knowledgeable industry ambassadors and future leaders,” says NPPC CEO Bryan Humphreys. They also go through comprehensive media and communications training to become effective grassroots advocates for the pork industry. *********************************************************************************** CFTC Fines CHS Hedging $6.5 million in Fraud Case The Commodity Futures Trading Commission fined CHS Hedging of Inver Grove Heights, Minnesota, $6.5 million for anti-money laundering, risk management, recordkeeping, and supervision violations. The company also has to undertake certain remedial measures relating to the violations. CHS reportedly accepted millions of dollars in margin payments from a rancher in Washington without adequately investigating the customer’s source of funds or reporting suspicious activity. The scheme ran from 2017 through 2020. The Washington rancher involved in the case pled guilty to criminal fraud charges and was sentenced to 11 years in prison. A CFTC report says the violations are primarily the result of failing to implement an adequate anti-money laundering program, particularly as it applied to the futures and options trading account controlled by the Washington rancher. “The Commodity Exchange Act requires companies like CHS Hedging to have and actually implement adequate money laundering and risk management procedures,” says Acting Enforcement Director Gretchen Lowe. *********************************************************************************** USDA Says Seasonal Worker Numbers Jumped in 2021 It’s well known that American agricultural employers who anticipate a shortage of domestic workers can fill seasonal farm jobs with temporary foreign workers through the H-2A Visa Program. The Department of Labor officially certified approximately 317,000 temporary jobs in fiscal year 2021 under the H-2A program. That number was more than six times the number of jobs certified in 2005. Only about 80 percent of the certified jobs in 2021 resulted in the issuance of a visa. The program has grown partly in response to current U.S. domestic workers finding jobs outside of American agriculture and a drop in newly arrived immigrants looking for farm jobs in the U.S. Six states accounted for about half of the H-2A jobs that were filled in 2021, including Florida, Georgia, Washington, California, North Carolina, and Louisiana. Nationally, the average H-2A contract offered 24 weeks of employment and 39.3 hours per week at $13 per hour.
| Rural Advocate News | Wednesday December 28, 2022 |
UFW Assigns Blame for Lack of Immigration Action United Farm Worker leadership laid the blame for a lack of action in Washington on immigration at the feet of the Republican Party and the American Farm Bureau Federation. The Senate decided not to include worker immigration legislation in the fiscal year 2023 omnibus appropriations bill. The omnibus passed the House last week and is on the way to President Biden’s desk for his signature. “It’s a bitter disappointment for farm workers across the country who have earned the right to legal status through the sweat of their brow,” says UFW President Teresa Romero. She also called it unsurprising, saying that leaders of both groups want to keep farm workers living in fear and uncertainty. “They know that an undocumented workforce is easier to intimidate and exploit,” she says. Farm Bureau says the legislation will lead to wild swings in wage rates beyond the reach of many farmers and ranchers. *********************************************************************************** NACD Applauds Conservation Investments in Omnibus The National Association of Conservation Districts is grateful the fiscal year 2023 omnibus appropriations bill passed the House last week and was sent to the White House for signing. They say the agreement supports voluntary, locally-led conservation efforts across the country by providing strong funding for critical conservation programs and initiatives. The package includes no cuts to mandatory spending for USDA farm bill conservation programs like EQIP, CSP, RCPP, and CRP. It also has $941 million for Natural Resources Conservation Service Operations, including more than $800 million for Conservation Technical Assistance. That’s a $40 million increase compared to the 2022 funding level. The funding supports the work of conservation districts and other local partners to help producers assess resource needs, develop conservation plans, and implement effective conservation practices. There’s also $925 million for the NRCS Emergency Watershed Protection Program, of which $75 million goes to Watershed Protection and Flood Prevention Operations. *********************************************************************************** U.S. Hog Numbers are Two Percent Below Last Year The U.S. inventory of all hogs and pigs on December 1 was 73.1 million head. The recent Hog and Pig Report says that’s down from December 1 of last year and one percent lower than September 1, 2022. The breeding inventory was 6.15 million head, up slightly from last year and slightly higher than the prior quarter. Market hog inventory was 67 million head on December 1, down two percent from 2021 and one percent lower than last quarter in 2022. The September-November 2022 pig crop, at 33.7 million head, was one percent lower than in 2021. Sows farrowing during this period totaled three million head, down one percent from 2021. The sows that farrowed during the quarter represented 49 percent of the breeding herd. Hog producers intend to have 2.95 million sows farrow during the December-February quarter, up one percent from the actual farrowings during the same period a year earlier. *********************************************************************************** Report Shows Price Increases for Different Food Types A new USDA report shows retail food prices increased 8.9 percent in the first seven months of this year. That increase is higher than the rate over the same period last year and 2020. All 13 food categories in the USDA report experienced faster price increases so far in 2022, compared with the same period last year and historical average price increases through July. All food categories saw price increases of at least four percent during the first seven months of 2022. Three food category prices increased by more than 10 percent: eggs at 21 percent, fats and oils were up 13 percent, and poultry rose 12 percent. Inflationary pressures differ by category. For example, eggs and poultry prices are currently much higher than their historical average because of an outbreak of highly pathogenic avian influenza. Fresh vegetables increased the least of all categories in the first seven months of this year. *********************************************************************************** China Pushes for Ag Tech Progress President Xi (Zhee) Jinping is pushing for China to accelerate efforts to achieve self-reliance in agriculture technology. Farm Doc Policy News says China’s president identified seed development and core equipment among the areas he’d like the country to focus on. The central leadership had said in 2020 that the country’s seed industry was a weak link in its food chain and need to make more and better use of science and technology to turn that sector around. China is also expected to end the year with historically-low soymeal carryover stocks, which should increase its dependence on imported soybeans next year. Unfortunately for U.S. producers, Brazil’s soybeans, which get processed in China to make livestock feed, are currently more attractive than U.S. soybeans for February shipments. The news is considered positive for Brazilian farmers as some of them could begin harvesting their 2023 soybeans in as little as a week. *********************************************************************************** Ag’s Share of Total Export Value Hits New High The total value of U.S. exports has grown at an average annual rate of six percent since 2002, reaching a record high of $1.4 trillion in fiscal year 2021. Agriculture’s share of total U.S. exports has steadily increased between fiscal years 2002 and 2021. The value of America’s agricultural product exports rose by an average of 11 percent annually, exceeding the overall rate of increase for total U.S. exports. In 2021, ag exports accounted for 12 percent of the total value, up from nine percent in 2002. Growth in agricultural exports has largely been resilient to market shocks like COVID-19. Even as total U.S. exports fell by 12 percent during the onset of COVID in 2020, ag exports remained steady on the strength of surging shipments of soybeans, corn, and pork to China. Ag exports surged 23 percent to $172 billion in 2021. The export forecast is a record $196 billion in 2022.
| Rural Advocate News | Wednesday December 28, 2022 |
Wednesday Watch List Markets On Wednesday, an index of U.S. pending home sales for November will be out at 9 a.m. CST, the only report of the day. The U.S. Energy Department's weekly inventory report is pushed to Thursday during this four-day week. Traders will keep close watch over the latest weather forecasts, check for a possible export sales announcement at 8 a.m. CST and keep an eye on outside markets. Weather Warmer, Pacific air continues to flood the country east of the Rockies and is supplanting the arctic blast from last week. That is opening the door for more storm systems to move through the country. One is moving through the Intermountain West on Wednesday and will emerge into the Plains tonight where showers will develop going into Thursday. Winds continue to increase ahead of this system Wednesday, with some wind advisories posted for the Southern Plains.
| Rural Advocate News | Tuesday December 27, 2022 |
Senate Confirms McKalip, Esteban The Senate approved the nominations of Doug McKalip as the chief agricultural negotiator with the U.S. Trade Representative’s Office and Jose Esteban as USDA Undersecretary for Food Safety. Senate Ag Chair Debbie Stabenow says the nominees waited three months for a long-overdue floor vote. “Doug McKalip has proven he’s ready for the essential task of growing new markets abroad and protecting our producers from unfair trade practices,” she says. During a confirmation hearing earlier this year, McKalip said, “It will be my duty to break down trade barriers to American food and ag exports.” He’ll also press trading partners to live up to existing agreements. As the undersecretary for food safety, Esteban will be the agency’s leader on issues ranging from preventing food-borne illnesses to the regulation of cell-cultured meat that’s now near commercialization. Ranking Senate Ag Committee Member John Boozman (BOZE-man) says Esteban brings years of experience to a crucial USDA position. *********************************************************************************** Ag Groups Applaud McKalip, Esteban Confirmations America’s leading agriculture groups applauded the Senate confirming Doug McKalip as the new Chief Agricultural Negotiator. The U.S. Grains Council says McKalip, “combines extensive international experience and almost 30 years of government service at USDA to help advance trade priorities and open up global markets.” American Farm Bureau President Zippy Duvall says McKalip has proven to be more than qualified for the position because of his experience. U.S. Meat Export Federation President Dan Halstrom says filling McKalip’s position was essential as the U.S. is currently engaged in negotiations with several key trading partners. NCBA’s Vice President of Government Affairs Ethan Lane says Jose Esteban’s new role in food safety is essential for ensuring consumer confidence in the U.S. beef industry. The National Milk Producers Federation and the U.S. Dairy Export Council applaud the Senate’s confirmation. “This move ensures dairy farmers will be at the negotiating table,” says NMFP CEO Jim Mulhern. *********************************************************************************** Egg Prices Hit Record Levels Egg prices are hitting record levels. Free Republic Dot Com says the surge in price is being driven by an avian-influenza outbreak that’s killed tens of millions of chickens and turkeys in the U.S. this year. Wholesale prices of Midwest large eggs hit a record of $5.36 a dozen this month. Retail egg prices are rising faster than any other items in American supermarkets in 2022. Egg prices are up 30 percent from January through early December compared to the same period last year and are outpacing overall food and beverage prices. Some suppliers are predicting potential price relief by February or Mach, but cold weather could slow production in the near term. Highly Pathogenic Avian Influenza has led to the death of 58 million birds, making it the deadliest outbreak in U.S. history. USDA says entire flocks have to be destroyed after an infection is confirmed to limit potential spread. *********************************************************************************** Democrats Don’t Make Changes in House Leadership Democrats in the U.S. House of Representatives aren’t making any changes to their leaders on the Agriculture and Education and Labor Committees, even after losing a majority. Representatives David Scott of Georgia and Bobby Scott of Virginia won positions as ranking members of the Agriculture and Education and Labor Committees, respectively, after being chairs in the previous Congress. “I’m very pleased to get elected by my friends and Democratic colleagues to serve as a ranking member of the House Agriculture Committee for the next Congress,” Scott says. “I believe we have accomplished important groundwork leading up to the 2023 Farm Bill, and I’m looking forward to doing our best to meet the needs of producers and consumers in this important legislation.” The House Education and Labor Committee has jurisdiction over child nutrition programs, and Bobby Scott says governing should be about “improving the lives of people from all walks of life.” *********************************************************************************** AFBF: Risk Management Tools a Farm Bill Priority During volatility in the markets, managing risk remains a priority for farmers and ranchers. New analysis from the American Farm Bureau Federation examines several farm bill risk management tools included in Title 1 and explains the impact and importance to farmers. The analysis provides a historical perspective, including changes made in the 2018 Farm Bill to reauthorize and strengthen the PLC and ARC price and revenue programs. These programs were created in the 2014 Farm Bill to provide shallow-loss risk management coverage. AFB Economist Shelby Myers says that one factor remains consistent as farmers and ranchers faced unprecedented circumstances in recent years, and that’s the need for a variety of risk management options. Programs like ARC and PLC have to fit farmers’ and ranchers’ unique situations. Risk management tools like these are vital to farmers and ranchers being able to mitigate the unpredictable nature of farming. To read the report, go to fb.org. *********************************************************************************** Smithfield Donates 30,000 Pounds of Food Smithfield Foods donated 30,000 pounds of protein, enough for 120,000 servings, to the Foodbank of Southeastern Virginia and the Eastern Shore to help fight food insecurity during the holidays. The donation includes hams, bacon, lunch meat, and smoked sausage and is part of Smithfield’s Helping Hungry Homes Program. “Providing for the needs of our neighbors is a year-round job,” says Christopher Tan, President and CEO of the Foodbank of Southeastern Virginia and the Eastern Shore. “A large gift is especially meaningful at this time of year when families should be celebrating the holiday season, not worrying about finding food to put on their tables.” Smithfield has donated hundreds of millions of protein servings to food banks, disaster relief efforts, and community outreach programs in all 50 states. “The holiday season can be stressful, and no one should worry about their next meal,” says Jonathan Toms, senior community development manager for Smithfield.
| Rural Advocate News | Tuesday December 27, 2022 |
Monday Watch List Markets Back from the Christmas holiday, traders will catch up on the latest weather forecasts and any news that broke over the three-day weekend. USDA's weekly grain export inspections will be released at 10 a.m. CST and don't be surprised if numbers are low, given last week's bitter cold temperatures and pre-holiday mood. Traders will also watch to see if USDA has an export sales announcement at 8 a.m. CST. Weather The visit from the polar vortex over the Christmas holiday is short-lived as warmer temperatures that built up over the West are spreading eastward this week. In spite of the surge in temperatures, precipitation will be limited to the West on Tuesday. Highs: 10s/20s northern Canadian Prairies; 20s/30s Midwest; 30s/40s Pacific Northwest, Northern Plains, Delta; 40s/60s Central and Southern Plains, Southeast.
| Rural Advocate News | Friday December 23, 2022 |
Senate Confirms Alexis Taylor to USDA Post The Senate voted to confirm Alexis Taylor as the new USDA Undersecretary for Trade and Foreign Affairs. Taylor, the former director of Oregon’s Department of Agriculture, is the new top agricultural trade official with the agency. Food Business News says she’ll be responsible for overseeing international negotiations related to agricultural trade, developing America’s trade policies, promoting U.S. agriculture overseas, and opening up new markets for American commodities. At a nomination hearing in September, Taylor said her top priorities would be working with the U.S. Trade Representative on a path toward country-of-origin labeling that would be compliant with World Trade Organization rules. She also intends to hold Canada and Mexico to their commitments under the USMCA and will expand export markets for dairy and other farm products within the Indo-Pacific Economic Framework. She’ll also be involved in food safety issues by working to contain highly pathogenic avian influenza cases without market disruption. *********************************************************************************** Group Says Congress Failed Farmers, Farmworkers, and American Consumers Congress failed to include immigration solutions in the omnibus package and the American Business Immigration Coalition Action group isn’t happy with that. Coalition Executive Director Rebecca Shi (she) says they regret that this Congress failed to show the courage needed to advance immigration solutions for farmer workers and farmers, for Dreamers, the U.S. economy, and consumers. “There is a reason why Congress remains one of the most unpopular institutions in our nation,” Shi says. “At the end of the day, Republicans still prefer to complain about the border than to compromise on solutions, and Democrats have much higher priorities than standing up for hardworking immigrants.” The group says America’s farmers are struggling to find the amount of workers they need to stay in business, driving record-high food inflation. Bringing two million dreamers out of the shadows would create more than 1.4 million jobs for Americans and $46 billion in economic spending. *********************************************************************************** New Report Lays Out Priorities for U.S. Dairy Reform A new report from the American Farm Bureau Federation lays out priorities, principles, and recommendations for reforming dairy policy. A Farm Bureau Working Group explored options for strengthening the dairy industry through the 2023 Farm Bill and modernizing the current Federal Milk Marketing Order. Some of the priorities for FMMO reform include returning the Class 1 mover to a “higher-of” formula, increasing the Class 1 differentials to reflect changes in the marketplace, and making cost surveys mandatory and have them audited by USDA, and several others. “America’s dairy farmers continue to meet the challenges of growing demand for milk products, even while the number of dairy farmers in the U.S. continues to shrink,” says AFB President Zippy Duvall. “These recommendations convey the needs of dairy farmers across the country.” Farm Bureau also says the report gives guidance to USDA as it prepares for future hearings on modernizing the FMMO system. *********************************************************************************** Groups Respond Positively to Taylor Confirmation The Senate confirmed Alexis Taylor as USDA Undersecretary for Trade and Foreign Agricultural Affairs, and U.S. ag groups reacted positively. “Alexis has a strong background in agriculture from growing up on a farm in Iowa and has a deep knowledge of trade issues,” says the U.S. Grains Council. American Farm Bureau Federation President Zippy Duvall says, “Trade is critically important to U.S. agriculture, and she’ll be a strong advocate on the world stage and a capable leader for USDA staff.” U.S. Meat Export Federation President and CEO Dan Halstrom says Taylor will be a “tremendous asset to USDA and a champion for U.S. agriculture.” The American Soybean Association also reacted positively to the announcement. Stephen Censky, ASA CEO, says, “Alexis has a depth of knowledge about agricultural trade and public policy that will serve her well in this post.” Groups like NCBA and the National Milk Producers Federation welcomed the nomination. *********************************************************************************** U.S. Agencies Partner to Promote Global Food Safety The USDA, U.S. Agency for International Development, and the Food and Drug Administration launched the Food Safety for Food Security Partnership, also known as FS4FS. The initiative includes a $15 million investment over the next few years to support the availability and trade of safe food products to reduce poverty, hunger, and malnutrition in low- and middle-income countries. Foreign Ag Service Administrator Daniel Whitley says the initiative developed after the U.S.-African leaders summit, where many African heads of state asked for help in developing science-based measures and standards for food safety. “Through the new partnership, we will work together to address those needs, which are vital to ensuring greater access to safe and nutritious foods across Africa,” Whitley says. The agencies will also work to build on the success of Feed the Future and work with countries around the world to increase access to safe and nutritious foods and unlock trade opportunities. *********************************************************************************** China is World’s Number One in Ag Research and Development Public agricultural research and development funding has trended lower in the United States during the last several decades. However, a USDA report shows several of America’s top trading partners have increased their funding. The EU’s expenditures have grown since 2000, as have the funding pools in India and Brazil. But no country has experienced as rapid an increase in funding as China, which became the largest funder of agricultural R & D after 2011, surpassing the European Union. As recently as 2015, China was spending more than $10 billion yearly on agricultural R & D. That level was roughly twice what the U.S. spent in 2015 and nearly quintupled China’s own R & D spending in 2000. With China a major importer of U.S. agricultural goods and Brazil a competitor to the U.S. in global corn and soybean markets, these developments could have a significant impact on America’s export competitiveness.
| Rural Advocate News | Friday December 23, 2022 |
Friday Watch List Markets In spite of being the last day of trading before Christmas, Friday has several reports on the docket and will be a normal trading session. The U.S. Commerce Department reports on U.S. personal incomes and consumer spending for November at 7:30 a.m. CST, the same time as a report on U.S. durable goods is out. At 9 a.m., the University of Michigan's report on consumer sentiment in December is due along with a report on U.S. new home sales for November. At 2 p.m., USDA will release cattle on-feed and the quarterly inventory of hogs and pigs, both for December 1. After the Christmas holiday, trading for grain and livestock futures will start again Tuesday morning at 8:30 a.m. CST. Weather A strong arctic front has passed through most of the country, with only the Northeast yet to go. Temperatures have fallen to significantly low values Friday morning and will continue to be frigid through the weekend. Winds remain high across much of the country, creating blowing snow and blizzard conditions harsh for travel, and dangerous windchills for humans and livestock. Precipitation is moving off to the East Coast, though lake-effect snows will wind up during the day. Snow is falling in the Pacific Northwest as well, a sign of a more active pattern for the West to close out 2022.
| Rural Advocate News | Thursday December 22, 2022 |
Sustainable Ag Coalition Supports Omnibus, Looks Into Ag Provisions The National Sustainable Agriculture Coalition says it supports the 2023 omnibus appropriations bill. It’s also looked into several agricultural provisions included in the bill. The coalition says the bill includes $242 billion for discretionary programs funded annually and mandatory programs like the Supplemental Nutrition Assistance Program. NSAC is pleased to see higher investments in a couple of key programs, including a $5 million increase for the Sustainable Agriculture Research and Education Program, and a more than $40 million increase for Conservation Technical Assistance. The coalition is also pleased to see expanded support for the Farm to School Grant Program, which will see a $2 million boost in its allocation, now at $14 million. NSAC Interim Policy Director Mike Lavender says, “The bill includes several key funding increases, though by and large maintains level funding for many programs.” They’re hopeful the bill gets to the president’s desk for signature as soon as possible. *********************************************************************************** U.S. Dairy Applauds USTR Actions Against Canada’s Dairy Practices The National Milk Producers Federation and U.S. Dairy Export Council applaud U.S. Trade Representative Katherine Tai’s actions under USMCA regarding Canada’s dairy market. Tai is filing a new request for dispute settlement consultations with Canada in order to expand the scope of the second USMCA dairy dispute to include additional elements necessary to ensure Canada complies with its trade agreement obligations. “We thank USTR and USDA for their diligence in working to ensure that American dairy producers have the market access promised under USMCA,” says Jim Mulhern, president and CEO of NMPF. “Canada continues to flagrantly flout its obligations, so the U.S. government needs to be ready with retaliatory measures.” Krysta Harden, president and CEO of USDEC, says it’s deeply unfortunate that Canada refuses to honor the full terms of the agreement. “USMCA is a fair deal that was thoroughly negotiated and agreed to by the Canadian government,” she says. *********************************************************************************** Wheat Industry Rail Shippers Welcome STB Rulings on Rate Disputes The U.S. Surface Transportation Board has put more streamlined processes in place for rail rate disputes that may benefit agricultural shippers. The STB established a voluntary arbitration program and a new procedure for rate challenges, known as the Final Offer Rate Review. Wheat farmers and the grain trade rely heavily on rail to transport wheat to export terminals, but rates for hauling wheat are often higher than for other crops. The U.S. Wheat Associates’ Working Transportation Group is pleased that the STB recognizes rail shippers need new and innovative ways to engage railroads on rate concerns. “These rulings are a welcome sign that rail customers like wheat farmers are being heard,” says Charlie Vogel, working group chair. “The voluntary arbitration program and the FORR process will help give smaller shippers a greater ability to challenge rail rates.” STB Chair Martin Oberman says they wanted to make smaller rail disputes reasonable and less time-consuming. *********************************************************************************** U.S. Egg Production Down Five Percent in November American egg production totaled 8.87 billion in November, down five percent from the same time last year. Production included 7.62 billion table eggs and 1.25 billion hatching eggs, of which 1.16 billion were broiler-type and 92.1 million were egg-type. The average number of layers in November totaled 375 million, down four percent from last year. November egg production per 100 layers was 2,369 eggs, slightly lower than last November. Total layers in the U.S. on December 1 totaled 374 million, five percent lower than last year. The layers consisted of 308 million layers producing table or market-type eggs, 62 million layers were broiler-type hatching eggs, and 3.74 million layers producing egg-type hatching eggs. Egg-type chicks hatched during November reached 46.5 million, up two percent from the previous November. Broiler-type chicks hatched during November totaled 810 million, one percent higher than in November 2021. Leading breeders placed 7.68 million broiler-type pullet chicks in November. *********************************************************************************** National Ag Day Essay Contest Looking for Entries Ahead of National Ag Day on March 21, 2023, the Agriculture Council of America is hosting an essay contest. The theme for the year is Growing a Climate for Tomorrow: How American Agriculture Does it Every Day. The essay contest is divided into two categories, either a written essay or a video essay. Both are national competitions and both winners get $1,000. The contest is open to students currently in grades 9 through 12. They must be a U.S. citizen and attend school in the U.S. The National Ag Day Program encourages every American to understand how food and fiber products are produced. It also teaches people to appreciate the role that agriculture plays in providing safe, abundant and affordable food products. The deadline for submitting entries in the essay contest is February 15, 2023. Go to agday.org for more information on contest rules, entry forms, or National Ag Day 2023. *********************************************************************************** USDA Says Dairy Exports Hit Record Levels USDA’s Foreign Agricultural Service released its biannual report on America’s dairy exports. The report found that U.S. dairy exports are setting records this year in terms of value. The report covers January through October and says this increase was driven by strong prices for dairy products. Overall values are up 25 percent. Whey exports led the way with a 37 percent increase since last year. USDA says the increase in export value didn’t necessarily coincide with an increase in export volume. In fact, nonfat dry milk export volume dropped eight percent while the value went up by 27 percent. Ice cream and dry whole milk and cream saw a decrease in export volume by one and two percent, respectively. On average, volumes rose by five percent. Butter and milk fat were the only categories where volume growth outpaced growth in value. Volume increased 43 percent while the value rose 30 percent.
| Rural Advocate News | Thursday December 22, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and updates of third-quarter U.S. GDP and the U.S. Drought Monitor. The Conference Board's U.S. index of leading indicators from November will be out at 9 a.m., but weather will get most of the day's attention with bone-chilling temperatures and snow fanning out across the central U.S. Traders will also keep an eye on South American forecasts. Weather An arm of the polar vortex is sweeping through the middle of the country on Thursday. Very cold temperatures are filling in behind a cold front, which is producing a band of snow as well. Winds behind the front are intense and areas that have snow cover will see blizzard conditions developing. The southwestern Plains may see cold damage on wheat over the next couple of mornings while livestock are at extreme risk.
| Rural Advocate News | Wednesday December 21, 2022 |
Omnibus Includes Growing Climate Solutions Act, SUSTAINS Act The National Milk Producers Federation commended Congress for including the Growing Climate Solutions Act and the SUSTAINS Act in its final fiscal year 2023 budget package. The measures will help dairy farmers seek additional sustainability opportunities as they work to fulfill the dairy sector’s voluntary, producer-led goal of becoming greenhouse gas neutral or better by 2050. NMPF president and CEO Jim Mulhern says, “Environmental markets and conservation programs have the potential to meaningfully assist dairy producers as they work to meet their 2050 environmental stewardship goals.” The Growing Climate Solutions Act would enable USDA to register technical service providers that help farmers implement stewardship practices that can generate credits on environmental markets. The SUSTAINS Act would allow private sector funds to supplement existing funding for farm bill conservation programs, which are continuously oversubscribed. The Senate will vote on the omnibus appropriations bill this week which also includes $40 billion in disaster funding. *********************************************************************************** US Requests New USMCA Dispute Consultations on Canadian Dairy TRQ Policies United States Trade Representative Katherine Tai Tuesday announced that the United States is requesting new dispute settlement consultations with Canada under the United States – Mexico – Canada Agreement. The request is over Canada’s dairy tariff-rate quota, or TRQ, allocation measures. Since initiating consultations with Canada in May 2022, the United States has identified additional aspects of Canada's measures that appear to be inconsistent with Canada's obligations under the USMCA, and U.S. concerns have only increased. With this new request, the United States expands its challenge of Canada’s dairy TRQ allocation measures to include Canada’s use of a market-share approach for determining TRQ allocations. Agriculture Secretary Tom Vilsack says, “Canada remains in violation of its commitments under the USMCA by not removing its trade restrictions on American dairy producers.” In January 2022, a USMCA dispute settlement panel found Canada’s dairy TRQ allocation measures to be inconsistent with Canada’s USMCA obligations. *********************************************************************************** USDA and USTR Seek New Trade Advisory Committee Members The Department of Agriculture and the Office of the U.S. Trade Representative are accepting applications for new members to serve on agricultural trade advisory committees. Members of the Agricultural Policy Advisory Committee advise the administration on implementing and enforcing existing U.S. trade agreements, negotiation of new agreements, and other trade policy matters. Members of the six Agricultural Technical Advisory Committees, or ATACs, provide technical advice and guidance on international trade issues that affect specific agricultural commodity sectors. The ATACs focus on trade in animals and animal products, fruits and vegetables, grains, feed, oilseeds, and planting seeds, processed foods, sweeteners and sweetener products, tobacco, cotton, and peanuts. Applicants must have expertise in U.S. agriculture and experience in international trade to be considered for committee membership. Application instructions are available at fas.usda.gov. Applications must be received by 5 p.m. ET on January 31, 2023. *********************************************************************************** USDA Invests $9.5M to Develop New Bioproducts from Agricultural Commodities The Department of Agriculture Tuesday announced an investment of $9.5 million to support the scale-up of sustainable bioproduct manufacturing in the United States. Three successful projects are funded through USDA’s National Institute of Food and Agriculture’s Bioproduct Pilot Program, which funds research and development of value-added products from agricultural commodities. Authorized and funded by the Infrastructure Investment and Jobs Act, the Bioproduct Pilot Program presents a unique opportunity to spur economic activity in the nation’s rural areas while lowering commercialization risks associated with bringing biobased products to market. The program’s exploration into bioproducts accelerates USDA’s efforts to develop circular bioeconomies, where agricultural resources are harvested, consumed, and regenerated sustainably. This pilot program also supports the objectives outlined in President Biden's recent Executive Order on Advancing Biotechnology and Biomanufacturing for a Sustainable, Safe, and Secure American Bioeconomy. The three awardees are Virginia Polytechnic Institute and State University, the University of Illinois Urbana-Champaign, and Soylei Innovations of Ames, Iowa. *********************************************************************************** USDA: Vegetable Prices Spike in 2022 Fresh-market vegetable crops in California, Florida, and Mexico were hit with a variety of inclement weather this summer and fall. The adverse weather reduced supplies and contributed to higher shipping-point prices, according to a USDA Economic Research Service report. Shipping-point prices for fresh vegetables are expected to remain above seasonal norms until new or replanted fields are harvested in late December or early January. While retail prices for all food rose at the quickest year-over-year pace since 1979, up about ten percent, retail fresh vegetable prices, as measured by the Consumer Price Index, rose six percent during the first three quarters of 2022. Driven primarily by rising transport costs and higher prices for key items such as potatoes, onions, and lettuce, when complete this year, the Consumer Price Index for fresh vegetables will likely present the largest year-to-year gain since an 11 percent surge in 1998. *********************************************************************************** Study Shows Soybean Oil for Biofuels Has Limited Impact on Overall Food Prices A new study shows U.S.-grown soybeans are well suited for people looking to cook, fuel up or find other sustainable solutions. The United Soybean Board partnered with Purdue University to evaluate whether the increased use of soybean oil in biofuels has contributed to the rising retail prices of food products for consumers. One key element missing from this equation is that only one-fifth of the soybean is oil, most of the soybean is meal used as a high-quality protein in animal diets. This expanded crush for oil to meet biofuel demand creates increased availability for meal, driving down the price of animal protein products. Jayson Lusk of Purdue University says, “What we found, after assessing the impact of rising soybean oil demand on prices at the grocery store, was little change to the Consumer Price Index.” While the increased demand for biofuels pushed up retail prices for oil between 0.16 percent and 4.41 percent, retail animal product prices declined between -0.01 percent and -0.16 percent.
| Rural Advocate News | Wednesday December 21, 2022 |
Wednesday Watch List Markets Wednesday is the first official day of winter and it will definitely feel like winter for anyone in the northern U.S. There are reports of U.S. consumer confidence in December and U.S. existing home sales in November at 9 a.m. CST, followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. Traders continue to closely watch the latest weather forecasts, especially for Argentina. Weather A significant low pressure system is pushing into the central U.S. Wednesday, and it will continue to bring snow to much of the north central U.S. into Wednesday night. Accompanying the snow will be very cold temperatures extending from the Northern Plains into the central Plains and Upper Midwest. Wind gusts up to 40-50 mph will also accompany the snowfall, creating blizzard conditions and dangerously cold wind chills.
| Rural Advocate News | Tuesday December 20, 2022 |
2022 Census of Agriculture Underway The Department of Agriculture Last week mailed the 2022 Census of Agriculture paper questionnaires to all known agriculture producers across the nation and Puerto Rico. Producers in the states received their survey codes last month with an invitation to respond online. Any producer who has yet to respond online now has the option to complete the ag census at agcounts.usda.gov or by mail. Producers who have already responded online do not need to respond again. The deadline for response is February 6, 2023. USDA National Agricultural Statistics Service Administrator Hubert Hamer says, “We know producers are busy, which is why NASS worked to make responding to the ag census more convenient than ever before.” The Census of Agriculture remains the nation’s only comprehensive and impartial agriculture data for every state, county, and U.S. territory. Responding to the Census of Agriculture is required by law, and the same law requires NASS to keep all information confidential. *********************************************************************************** Mexico Offers Amendments to Biotech Decree The U.S. Trade Representative’s Office and the Department of Agriculture are evaluating proposed amendments to Mexico’s decree to ban the use and purchase of biotech commodities. In a joint statement, USTR Katherine Tai and Agriculture Secretary Tom Vilsack say, “We agreed to review their proposal closely and follow up with questions or concerns in short order,” adding, “There is a joint recognition that time is of the essence and we must determine a path forward soon.” The two officials met with a delegation of senior Mexican Government officials in Washington, D.C. late last week. On the same day, a group of more than 20 farm-state Senators urged USTR and USDA to take action against Mexico’s proposal to ban U.S. genetically-engineered corn. The Senators write, “It would be detrimental to food security in Mexico, hurt U.S. agricultural sustainability, and stifle future agricultural technology innovations that would benefit both nations.” *********************************************************************************** Iowa State University Cover Crop Report A new report from the Iowa State University Center for Agricultural and Rural Development summarizes five years of data on Iowa farmers' use of cover crops. The survey was administered to farmers who visited local conservation field offices and received technical assistance related to cover crops. The more than 3,000 responses shed light on Iowa farmers' rationale and motivations to use cover crops, the timing of planting and termination, the types and extent of varieties used, and farmers' preferred information sources. The most prevalent types of operations using cover crops were farms producing row crops and cattle, and farms producing row crops but no livestock. Most respondents seeded cover crops on erodible land, and only on a portion of their fields. The stated motivations to use cover crops reported by at least two-thirds of the respondents include preventing soil erosion, building soil organic matter, improving soil health, and improving/protecting water quality. *********************************************************************************** Applications Open for Women in Food & Agriculture Mentorship Program Alltech recently announced Applications are now open for the Women in Food & Agriculture Mentorship Program. Now in its third year, the free-to-join program matches applicants based on their preferences, which can include gender of mentor, areas of expertise, language and industry sector, and offers opportunities for women in food and agriculture to develop meaningful industry connections. Alltech President and CEO Mark Lyons says, “We view our involvement in the Women in Food & Agriculture mentorship program as an investment not only in the lives of women but in the future of agriculture.” Women in Food & Agriculture is looking for mentors of any gender who have at least one year of experience in the food and ag sector. During matching, the organization will ensure all mentors have more work experience than mentees, so this should not be a barrier to mentors applying. For more information and to apply to be a mentor or mentee, visit wfa-initiative.com *********************************************************************************** Angus Foundation to host 150 Years of Angus Celebration The Angus Foundation will host a 150 Years of Angus Celebration on January 6 at Cattlemen's Congress in Oklahoma City. In 1873, George Grant settled in Victoria, Kansas, with four Angus bulls from Scotland. The evening of Angus fellowship will feature door prizes and auction items to benefit the Foundation's mission, food and refreshments and the announcement of the 2023 Angus Herdsman of the Year. Jaclyn Boester, Angus Foundation executive director, says, "We're proud of the Angus legacy built over the past 150 years, and we know through the work of the Foundation and our supporters, the future looks just as promising." The evening's auction will feature several exciting lots, including a Two-Night Wine Country Getaway for Six and a Live Oak Plantation Experience and Quail Hunt. Funds raised through the auction will benefit the Angus Fund, which provides unrestricted support for the Foundation's mission of furthering Angus education, youth and research. For more information, visit www.AngusFoundation.org. *********************************************************************************** Fuel Price Decline Continues, But End in Sight The nation's average gas price declined again last week, falling 11.9 cents to $3.09 per gallon. The national average is down 57.1 cents from a month ago and 20 cents per gallon from a year ago. The national average diesel price fell 14.1 cents last week, reaching $4.77 per gallon. Overall, the price for a gallon of gasoline is down nearly $2 compared to six months ago, but oil prices may put an end to the declines soon. GasBuddy’s Patrick De Haan says, “While the decline should take the national average under $3 per gallon in the next week or so, it is soon likely to fade as oil prices have held in the $70 per barrel range.” After reaching as low as $72 per barrel, West Texas Intermediate crude oil has seen a slight rally on China’s reopening plans. However, De Haan says diesel prices could fall another 50 cents or more in the weeks ahead.
| Rural Advocate News | Tuesday December 20, 2022 |
Tuesday Watch List Markets A report on U.S. housing starts for November is set for 7:30 a.m. CST Tuesday, the only significant report on the day's docket. Traders will keep watch on the latest weather forecasts and any outside news that emerges. Traders will also pause at 8 a.m. to see if USDA has an export sale to announce. Weather While a very cold airmass still remains across the Canadian Prairies and the north central U.S. Tuesday, a significant low pressure system is developing in the northern Rockies and will push east throughout the day, eventually reaching the northwest plains later Tuesday night. Meanwhile, a disturbance bringing rain showers across the southern Mississippi Valley will continue pushing east into the Southeast throughout Tuesday.
| Rural Advocate News | Monday December 19, 2022 |
Group Supports Modernizing H-2A Visa Program The American Business Coalition Immigration Action group applauded the Senate introduction of the Affordable and Safe Food Act. The legislation would modernize the nation’s farm guest worker H-2A visa program by opening it up to more farmers. “ABIC Action fully endorses this bill and is so grateful for the leadership of Senator Michael Bennet in introducing the legislation,” says ABIC executive director Rebecca Shi (she). The bill would make visas available for year-round work in the dairy industry and other agricultural sectors, put a down payment on border security with mandatory e-verify, stabilize wages for farmers, and create legal protections and a pathway to citizenship for undocumented decade-plus farm workers. Senator Bennet says the cost of farm labor has gone up almost 50 percent over the past decade, much higher than wage costs in other sectors of the economy. The bill would save farmers $23 billion over the next 12 years. *********************************************************************************** EPA: New Biofuel Mandates Will Boost GHG in Short Term The Environmental Protection Agency’s proposed changes to the nation’s biofuel blending mandates through 2025 will cause a short-term increase in greenhouse gas emissions. However, agency documents also say the changes will yield long-term reductions. The new proposal will add to greenhouse gas emissions over the next three years by between 81 million and 266 million tons. A Reuters review of the documents says the rise will come from new tiling for corn, soy, and other plantings that release carbon from the soil. EPA’s GHG calculator says that’s the climate equivalent of driving 17 million and 57 million vehicles for one year. However, EPA also projects those emissions will be more than offset in the long term due to reduced tailpipe emissions and other factors. Those figures are assuming biofuel volume mandates don’t change after 2025. EPA says the proposal would reduce GHGs by between 128 million and 1.6 billion metric tons. *********************************************************************************** Groups Argue in Court to Preserve Chlorpyrifos A total of 20 agricultural groups argued before the Eighth Circuit Court of Appeals in Washington, D.C., about chlorpyrifos. Specifically, they asked the court to reinstate chlorpyrifos tolerances that the Environmental Protection Agency has found safe. EPA revoked those safe tolerances, which effectively ended agriculture’s chance to use an important pesticide. The decision has inflicted enormous costs on thousands of American farmers and undermined their ability to protect their crops from potentially devastating insect pests. The groups say EPA revoked the safety tolerances despite finding on multiple occasions that at least 11 high-benefit crop uses could be safely maintained. American Soybean Association President Daryl Cates says, “Farmers rely on regulators following the law. Congress wrote the pesticide laws that way to provide growers access to the tools they need to be successful and ensure those tools can be used safely.” The groups are hopeful for a ruling in the coming months. *********************************************************************************** NASDA Receives Large USDA Grant From FAS Emerging Markets Program The National Association of State Departments of Agriculture was awarded a USDA grant worth $925,000 through the Foreign Agricultural Services’ Emerging Markets Program. The EMP helps organizations promote exports of agricultural products to developing countries with strong growth potential. “We are excited for NASDA members to engage in critical discussions to support global market development and strengthen bilateral trade relationships,” says NASDA CEO Ted McKinney. The group will use the funding to conduct market research in emerging markets in Southeast Asia and Africa. NASDA will also organize outbound trade missions for state department of agriculture leaders to learn about the markets and engage in discussions with relevant parties in each country. “Our members understand how important it is to spread the message about the value and quality of U.S. products and the benefits of innovation around the world,” McKinney says. “The first step in earning trading partners is establishing open communication.” *********************************************************************************** Iowa Farmland Prices Jump Again Iowa State University’s annual Land Value Survey shows farmland values are averaging $11,411 an acre in 2022, a 17 percent rise from last year. ISU says farmers have a lot more cash on hand, and supply chain issues led to a shortage of equipment, so the money typically spent on equipment is now getting used to buy land. The survey included responses from land appraisers, farm managers, and lenders. Seventy percent of the people surveyed said land values were “too high” or “way too high.” However, 48 percent of the participants also expect prices to be higher a year from now. About 28 percent expect lower land values next year, and 24 percent expect prices to hold steady. The survey began in 1941, and the 2022 farmland value of $11,411 per acre is the highest in history. When adjusted for inflation, this year’s value comes in at $8,716 an acre. *********************************************************************************** Commodity Sales to Overseas Buyers Surge USDA says sales of grains and soybeans climbed week-to-week during the week ending on December 8. Soybean sales took a healthy jump to 2.94 million metric tons, up from 1.72 million the week before. Sales surged as China bought 1.25 million metric tons, and another unnamed country purchased 1.03 million metric tons. However, exports for the week fell to 1.85 million metric tons, down from 2.25 million tons the week before. Corn sales totaled 958,900 metric tons, a sharp jump from 692,000 during the previous week. Guatemala was the top buyer at 196,400 metric tons, and Mexico bought almost 171,000 metric tons. Export sales for the week hit 591,000 metric tons, down from a little over 900,000 tons the previous week. Wheat sales rose to 469,000 metric tons, a sharp rise from 190,000 during the previous week. Exports were reported at 255,900 metric tons, down slightly from the previous week.
| Rural Advocate News | Monday December 19, 2022 |
Monday Watch List Markets Back from the weekend and getting close to Christmas, USDA's weekly report of export inspections at 10 a.m. CST is the only item on Monday's docket. Trading may be slower than normal this week, but changing weather forecasts, outside market concerns and the constant threat of Russian mischief will keep us all paying attention. Weather A very cold airmass will remain across the Canadian Prairies into the north central U.S. Monday. Meanwhile, a two-part system will provide rain showers and a few thunderstorms across the south central U.S. with snow showers across the north.
| Rural Advocate News | Friday December 16, 2022 |
USDA Invests in Infrastructure to Combat Climate Change in Rural America Agriculture Secretary Tom Vilsack Thursday announced USDA is investing $285 million in critical infrastructure. The investment seeks to lower energy costs, expand access to clean energy for people across rural America, and combat climate change. USDA is also making an additional $300 million available under the Rural Energy for America Program, including $250 million through the Inflation Reduction Act, to spur further investment. Vilsack says, "People in rural America are on the front lines of climate change, and our communities deserve investments that will strengthen our Country's resilience." USDA is making 844 investments through the Rural Energy for America Program. The program helps farmers purchase and install renewable energy systems and make energy efficiency improvements. USDA also announced that it will make $300 million available under the Rural Energy for America Program to expand renewable energy and support energy-efficiency projects. The deadline to apply for grants is March 31, 2023. Applications for technical assistance grants are due January 31, 2023. Applications for loan guarantees are accepted year-round. *********************************************************************************** Bennet, Newhouse, Introduce Last Minute Farm Labor Bill In a last-minute effort to get H-2A reform finished before Congress adjourns, lawmakers have introduced a new bill. Senator Michael Bennet, a Democrat from Colorado and Representative Dan Newhouse, a Washington state Republican, introduced the Affordable and Secure Food Act Thursday. The legislation will reform the H-2A Temporary Agricultural Worker program by expanding H-2A visas to year-round jobs for the first time, modernizing the application process, creating more wage certainty, and ensuring critical protections for farm workers. Senator Bennet says, “This plan is broadly supported by farmers, by labor, by immigration advocates, and business,” adding, “There is no reason that we shouldn’t get this done.” Representative Newhouse says, “let’s stop waiting, and start acting,” and “reform our broken immigration laws.” The legislation reflects years of close input from farmers and ranchers, agricultural workers, and labor organizations, and would establish a program for agriculture workers, along with their spouses and minor children, to earn legal status. *********************************************************************************** USDA Releases 2021 Organics Data USDA’s National Agricultural Statistics Service Thursday released the results of the 2021 Organic Survey. The survey shows total sales of $11.2 billion in organic products, an increase of $1.28 billion, or 13 percent, from 2019. There were 17,445 certified organic farms, a five percent increase from 2019. California continued to lead the nation in certified organic sales with $3.55 billion, which is 32 percent of the U.S. total. It also led all states with more than 3,000 certified farms and 813,700 certified acres. Washington, Pennsylvania, Texas, and Oregon, round out the top five states for value of organic sales. Marketing practices in the certified organic farming sector showed that $2.02 billion in organic products were sold directly to retail markets, institutions, and local/regional food hubs. Another $310 million in organic products were sold directly to consumers. The value of processed or value-added products such as jam, wine, cheese, and meat, accounted for $707 million. *********************************************************************************** McKinsey & Company Release Global Farmer Survey Results Despite economic disturbances, high crop prices are giving farmers around the world cause for cautious optimism, according to a new survey. Global consultancy McKinsey & Company this week released the results of its global survey of 5,500 farmers from nine countries. Seventy percent of farmers expect profits to remain stable or increase - the result of higher crop prices driving profitability in the next two years. Consequently, farmers are being inspired to invest in new products that are focused on yield increase and crop protection. Despite an uncertain future with supply chains impacted by geopolitical conflicts, farmers are facing the changes head on, innovating in new areas and adopting new strategies. Vasanth Ganesan, Partner at McKinsey, says, “Products and services should be tailored and personalized for growers, to stimulate uptake and provide farmers access to yield-driving technologies and greater cost-efficiencies. McKinsey & Company is a global management consulting firm in more than 130 cities and 65 countries. *********************************************************************************** CHS Releases 2022 Sustainability Report CHS recently released the 2022 CHS Sustainability Report, describing the company's approach to sustainability and highlighting some of its sustainability initiatives. The actions taken by CHS will help the company reduce its impact on the planet, respond to opportunities related to enhanced sustainability and continue to build a better future for the farmers and ranchers who own the cooperative system. In 2022, CHS added Megan Rock as vice president, sustainability and innovation and chief sustainability officer. CHS will place an emphasis on helping owners, and other stakeholders understand the company's approach to environmental, social, and corporate governance reporting, including providing definitions and interpretations in the 2022 CHS Sustainability Report. The company is also exploring technologies that impact supply chain automation, real-time soil sensing and traceability in row crops as part of its sustainability efforts. For an in-depth look into the 2022 CHS Sustainability Report, visit chsinc.com/sustainability. *********************************************************************************** “Yellowstone” Creator to Speak at Annual Cattle Industry Convention Taylor Sheridan will speak during the Opening General Session of the 2023 Cattle Industry Convention & NCBA Trade Show in New Orleans on February 1. Sheridan will join NCBA President Don Schiefelbein, a Minnesota cattle producer, for a conversation about ranch life. Sheridan says, “My passion for the ranching lifestyle has inspired me to write stories that are rich in history, led by complex characters, and focus on family dynamics.” Sheridan is an Academy Award®-nominated writer and actor as well as a member of the Texas Cowboy Hall of Fame. A Texas native himself, Sheridan excels in the Western horse performance industry as an avid supporter and competitor in reining and cutting. He also owns and operates two Texas ranches, including the legendary 6666 or Four Sixes Ranch, a 2015 Environmental Stewardship Award Program regional winner, and Bosque Ranch. Sheridan recently launched Four Sixes® Ranch Brand Beef which retails beef sourced from 6666 and a network of ranches.
| Rural Advocate News | Friday December 16, 2022 |
Friday Watch List Markets There are no significant reports on Friday's docket, but traders will pay attention to the latest weather forecasts, pause at 8 a.m. CST to see if USDA has an export announcement and will keep an eye on outside markets and any news from Ukraine. Livestock traders have to wait for USDA's cattle on-feed and quarterly hogs and pigs inventory reports, due out next Friday after the market close, just in front of the Christmas weekend. Weather While our large winter storm continues to wind down slowly, snow will fall in bands across northern areas of the country throughout the day. Winds are still elevated behind the system, mostly across the Plains, where blizzard conditions continue.
| Rural Advocate News | Thursday December 15, 2022 |
Corn Growers Call on Biden to Set Quick, Firm Timeline with Mexico Leaders of state corn groups and the National Corn Growers Association called on President Biden to take additional steps to address the pending decree by Mexico that would block imports of biotech corn. A letter sent to the President Wednesday encouraged Biden to raise the issue during upcoming trade talks and to file a dispute under the United States-Mexico-Canada Agreement if Mexico doesn't act expeditiously to withdraw the decree. The leaders say, "Corn farmers are right now in the process of making planting decisions for next spring, and any additional uncertainty in the market affects their ability to appropriately respond to multiple market signals." Mexico's Foreign Secretary Marcelo Ebrard plans to visit Washington this week to discuss the issue ahead of a planned meeting on trade between Biden, President Andrés Manuel López Obrador and Prime Minister Justin Trudeau in early January. The state corn grower leaders urged Biden to raise the issue at the meeting. *********************************************************************************** CoBank Releases 2023 Year Ahead Report The U.S. economy still has considerable momentum and is not currently on the verge of recession., according to CoBank's 2023 Year Ahead report. However, economists have never been more pessimistic, and there are legitimate reasons for concern. Over the past half-century, inflation above five percent has never been tamed without incurring a recession. Dan Kowalski, vice president of CoBank's Knowledge Exchange, says, "As financial conditions continue to tighten, we expect the U.S. economy will steadily soften through the first half of 2023." After two years defined by a strong economic rebound from the pandemic, the global economy will sputter in 2023. Despite the global pandemic and a steady barrage of disruptive challenges, the U.S. agricultural economy has fared quite well for the last three years. However, in 2023 producers and related industries will begin to show financial strains. A relentless series of adversities, including skyrocketing production costs, steeply higher interest rates and weakening demand, will increasingly pressure farm income and margins. *********************************************************************************** Counties with Continuous High Poverty Since 1960 Largely Rural Fresh data from USDA’s Economic Research Service shows counties with continuous high poverty since 1960 are largely rural. In 1960, 78 percent of U.S. counties had poverty rates of 20 percent or more. Among them, 28 percent continued to have high poverty through 1980. After enactment of the Economic Opportunity Act of 1964, commonly known as the War on Poverty initiatives, many counties reported reduced poverty rates. Between 1980 and 2019, poverty rates were relatively stable, mainly fluctuating with cyclical changes in the macroeconomy. As of 2019, there were 304 counties—13 percent of the counties with high poverty in 1960—that consistently had poverty rates of 20 percent or more over the last 60 years. The majority—264 counties—are rural counties and are clustered in the Appalachian States; the Black Belt in the South; the Mississippi Delta; the Ozarks region of Missouri, Arkansas, Oklahoma, and southeast Kansas; the Southwest; and in counties with large American Indian and Alaska Native populations. *********************************************************************************** New Project Allows Cotton Farmers to participate in Carbon Markets A new collaboration offers southern cotton growers the chance to participate in carbon markets. The Ecosystem Services Market Consortium, US Cotton Trust Protocol, Manulife Investment Management, and Forum for the Future announced the effort Wednesday. The collaboration launched an Eco-Harvest pilot project in Alabama, Arkansas, Texas, and Tennessee. The project will work with cotton farmers to generate high-quality carbon and greenhouse gas credits on more than 2,300 acres. Cotton producers targeted for enrollment include those implementing conservation practices such as nutrient management, reduced tillage, and cover crops. Once producers are enrolled in ESMC’s Eco-Harvest program, ESMC quantifies credits and arranges third-party credit verification by a global certification body. Corporate buyers can purchase these verified credits to help meet their supply chain sustainability targets. Participating farmers, who may be new to private voluntary ecosystem markets linked to conservation practice adoption, will develop knowledge on and the ability to participate in markets. Learn more about the program at ecosystemservicesmarket.org. *********************************************************************************** USDA Invests Additional $10M to Support Community Food Projects USDA’s National Institute of Food and Agriculture Wednesday announced an investment of nearly $10 million through the Community Food Projects Competitive Grants Program. The funding, made possible through the American Rescue Plan Act, bolsters USDA’s food and nutrition security efforts. Specifically, the funding promotes the self-reliance of communities in providing for the unique food needs of their community members. Community food projects support small to medium farmers, producers and processors in urban, rural, tribal and insular areas. The program provides communities a voice in food system decisions and supports local food markets to fully benefit the community, increase food and nutrition security and stimulate local economies. The program funds projects that meet the food needs of low-income individuals through food distribution, community outreach or improved food access. The funds will be invested in 29 Community Foods Projects from fiscal year 2022 Request for Applications submissions that were highly ranked but could not be funded at the time due to budget constraints. *********************************************************************************** NOAA Announces Funding for Fish Habitats Across U.S. NOAA Fisheries Wednesday announced $105 million in funding for 36 new fish passage projects under the Bipartisan Infrastructure Law. The announcement includes significant funding to implement fish passage projects that meet tribal priorities and build tribal organizational capacity to support their role as stewards of tribal resources. Through the funding, NOAA prioritized projects that demonstrate a broad base of stakeholder and community support. Selected projects will span the full range of fish passage types, including dam removals, fish ladders, culvert improvements and in-stream fish passage improvements. NOAA says 15 of the projects, encompassing more than $26.3 million in funding, will be led by tribal applicants for fish passage. Fish passage is about improving access for fish to the habitats they need or reconnecting access to historic habitat blocked by humans. Migratory fish like salmon require access to high-quality rearing and spawning habitats, and unimpeded migratory corridors, to be successful and resilient.
| Rural Advocate News | Thursday December 15, 2022 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, a report of U.S. retail sales in November and an update of the U.S. Drought Monitor. At 9:15 a.m., the Federal Reserve's report on U.S. industrial production for November will be out, followed by the U.S. Energy Department's report of natural gas storage at 9:30 a.m. and the November soybean crush report from the National Oilseeds Processors later Thursday morning. Traders will keep watch over the latest weather forecasts and outside market behavior after Wednesday's half-percent rate hike from the Federal Reserve. Weather A slow-moving, strong storm system continues to produce widespread weather impacts to the country on Thursday. Heavy snow is falling in bursts across the Upper Midwest and Dakotas and a line of precipitation is moving through the Eastern Seaboard. Winds are still high on the backside of the system across the Northern Plains, producing blizzard conditions. Colder air is filling in behind the cold front through most of the country.
| Rural Advocate News | Wednesday December 14, 2022 |
November Combine Harvesters, Four Wheel Drive Tractor Sales Grow Combine harvester sales remained positive in November, as did four-wheel drive tractor sales in both the U.S. and Canada. However, the latest data from the Association of Equipment Manufacturers says total tractor sales fell in both countries. Total U.S. ag equipment unit sales fell overall though the largest units grew in sales. November’s total farm tractor sales fell 21 percent compared to 2021, with the under-40 horsepower segment seeing the biggest drop at 28 percent. U.S. self-propelled combine sales in November grew 8.3 percent to 314 units sold. Combine sales are one of two positive segments this year, up 15.7 percent year-to-date. The other growing segment in 2022 is the 100-plus horsepower segment, up 6.2 percent during November and 13.3 percent higher year-to-date. Combine harvesters and 4WD tractors were the only higher segments in Canada. “While total sales are down, the larger equipment continues to be strong,” says Curt Blades of AEM. *********************************************************************************** Lower Soybean Oil Demand Means Higher Ending Stocks The current 2022-2023 U.S. soybean balance sheet remains unchanged for now as export and crush volumes are in line with current forecasts. Although soybean meal is off to the projected start, the same can’t be said for soybean oil. Abysmal export volumes and commitments have resulted in a lower soybean oil export forecast for the current marketing year, dropping by 200 million pounds to 1.1 million pounds. Total commitments were down 90 percent on December 1. The U.S. Environmental Protection Agency released its renewable fuel obligation targets for 2023-2025, which included a slight bump in the biomass-based diesel mandate during the first year. The EPA also approved and finalized a pathway for canola oil used in renewable diesel production. As a result, America’s soybean and canola oil balance sheets are changed to nearly offset the expected impacts on domestic use. Ultimately, the soybean oil ending stocks forecast got raised to 1.9 billion pounds. *********************************************************************************** Vegetable Prices Up 40 Percent Americans are paying up to 40 percent more for their vegetables than in 2021, and drought is a big reason for the price hike. A new report from Daily Mail says the increase is due, in large part, to states that grow fresh produce getting hit with water cuts because of droughts and storms destroying some crops as well. For example, Arizona produces 90 percent of the leafy greens in the U.S. and experienced its worst drought in 1,200 years. Water levels in the Colorado River are dramatically low, cutting down on the amount of water available to farmers. No relief is coming for Arizona’s farmers as officials will cut Arizona’s water intake from the Colorado River by 21 percent starting on January 1, 2023. The nation’s top agricultural state, California, is also getting hurt by severe drought. The biggest increase was a 38 percent jump in the price of fresh and dry vegetables. *********************************************************************************** Officials Want Support for Organic Poultry and Dairy Producers Senator Tammy Baldwin and Representatives Jared Huffman and Chellie Pingree led 25 colleagues in a bipartisan, bicameral letter asking Ag Secretary Tom Vilsack for immediate assistance for organic poultry and dairy producers. “We’re writing on behalf of the organic and poultry sectors to request emergency relief in response to skyrocketing feed costs that are impacting the future viability of this industry,” the letter says. “The situation is dire and requires your immediate response.” International trade challenges specific to the organic sector, persistent drought, and the lack of a stable domestic supply of certified organic feed combined to create a dire economic situation for organic livestock farmers for the past two years. They also point out that year-over-year price spikes in the cost of feedstuffs are now creating unsustainable circumstances that could lead to further farm closures, reduced competition, and ultimately limit consumer choice. If not addressed, the impact could be devastating. *********************************************************************************** CNH Industrial Opening Electrification R and D Center in Michigan CNH Industrial recently announced it has opened a new technical center in Detroit, Michigan. The center is designed to support the company’s growing innovation in electrification. It will also enhance CNH Industrial’s technology capabilities. “This new center underlines our commitment to growing our electric vehicle and subsystem profile and marks another milestone for us,” CNH says in a statement. “This allows us to become more customer-focused and build mission-fit electrified drivetrains and high voltage systems.” The new site in Detroit will complement and partner with the company’s existing electrification site in Italy. The sites will work together to advance the company’s position in alternative types of propulsion built on more than 15 years of R and D experience. “As an employer, we are investing in talented and motivated people who augment our in-house electrification capabilities,” says Kevin Barr, Chief Human Resource Officer. “Our talent will change agriculture in the years ahead.” *********************************************************************************** Weekly Export Inspection Numbers Drop USDA says inspections of soybeans and grain for overseas delivery all fell in the seven days ending on December 8. Soybean assessments came in at 1.84 million metric tons, down from over two million tons the prior week. That’s still better than the 1.75 million reported during the same week last year. Corn inspections also fell, dropping to 505,000 metric tons. That number was down from almost 825,000 the previous week. That corn number was also below the total from the same time last year of 930,000 metric tons. Wheat inspections totaled just 218,500 metric tons, down from more than 341,000 the week before and 269,000 during the same week last year. Since the start of the marketing year, USDA has inspected 7.15 million metric tons of corn for export, 23.4 million metric tons of soybeans, and 11.1 million metric tons of wheat. The wheat marketing year began on June 1.
| Rural Advocate News | Wednesday December 14, 2022 |
Wednesday Watch List Markets At 9:30 a.m. CST Wednesday, the U.S. Energy Department will release its weekly report of energy inventories, including ethanol productions. At 1 p.m., the Federal Reserve will conclude its two-day meeting and is expected to increase the federal funds target by a half-percent. Traders will be watching for any comments from the Fed, the latest weather forecasts and for any sign of export sales. Weather In the midst of a strong storm system, continued heavy snow and blizzard conditions are occurring over the Northern Plains while a band of precipitation arcs through the Midwest and down into the Lower Mississippi Valley. Additional precipitation is forming over eastern Texas as another low pressure center develops on a strong cold front near the Mississippi River later today. That low will move northeast and through the Midwest with additional precipitation and risks for severe weather across the Gulf Coast.
| Rural Advocate News | Tuesday December 13, 2022 |
FACA Congratulates Additional Recipients of Climate-Smart Pilot Project Funding The Food and Agriculture Climate Alliance Monday congratulated the second group of organizations selected to receive funding through USDA’s Partnerships for Climate-Smart Commodities Program. Agriculture Secretary Tom Vilsack announced the additional funding of $325 million for 71 projects under the second funding pool of the effort. USDA received more than 1,000 proposals between two funding pools requesting more than $20 billion in funds. The announcement brings the total investment from both funding pools to more than $3.1 billion for 141 tentatively selected projects. The projects will provide meaningful opportunities for small and underserved producers to participate in innovative climate programs, according to FACA. One of FACA’s key tenets is ensuring federal climate programs offer equitable opportunities for all farmers, ranchers and forest owners. FACA supports a voluntary, incentive-based approach to advance the deployment of climate-smart practices on working lands. FACA consists of organizations representing farmers, agribusinesses, manufacturers, the food and innovation sector, state governments, sportsmen, and environmental advocates. *********************************************************************************** USDA Accepting Applications for Panama Agribusiness Trade Mission USDA’s Foreign Agricultural Service is accepting applications from U.S. exporters for a regional trade mission to Panama from March 19-23, 2023. FAS Administrator Daniel Whitley says, "This is a perfect time to increase U.S. agricultural and food exports to Central America." USDA staff and regional experts will provide in-depth market briefings while in the country. The agency will also arrange targeted business meetings with potential customers from Panama, a bilateral Free Trade Agreement partner, and buyers from countries in the multilateral Central America and Dominican Republic Free Trade Agreement. The region offers strong capabilities in logistics, distribution, processing, cold chain, and more. Strong opportunities exist for exporters across many industries, including poultry, pork, dairy, beer and wine, snack foods and health foods. This will be the first USDA Agribusiness Trade Mission in 2023. The deadline to apply for the CAFTA-DR trade mission is Friday, December 30. Complete information is available at fas.usda.gov/. *********************************************************************************** FTC: Tractor Supply Company Must Sell Some Orscheln Stores The Federal Trade Commission recently finalized a consent order settling Tractor Supply Company’s acquisition of rival chain Orscheln (ORR-shlin) Farm and Home LLC. Following a public comment period, the FTC determined the acquisition would have harmed competition among farm stores in the Midwest and South. The consent order imposes a number of requirements, including that Tractor Supply divest some Orscheln stores, as well as Orscheln’s corporate offices and Missouri distribution center, to Bomgaars )BOM-gars), an Iowa-based farm store chain, and other stores to Buchheit (buck-eyet), another chain with farm stores in Missouri and Illinois. Tractor Supply Company announced it closed the Orscheln Farm and Home acquisition in October in a deal valued at $320 million. The consent agreement also requires that for a period of three years, the companies buying the divested farm stores must obtain prior approval from the FTC before selling any of the Orscheln stores they acquired. *********************************************************************************** Alltech ONE Conference Embarks on a World Tour in 2023 Alltech is transforming its annual Alltech ONE Conference in 2023 into a series of international events. The events will invite collaboration on the greatest challenges facing the agri-food industry. Instead of welcoming the world to Alltech's home in Lexington, Kentucky, as it has for the past 38 years, the Alltech ONE World Tour will bring the ideas and inspiration of the ONE Conference to communities throughout the world. Stops are planned in Brazil, Canada, Hungary, Indonesia, Ireland, Italy, the Middle East, the Philippines, Singapore, Spain, the United States and Vietnam. Additional stops are expected to be announced in 2023. Alltech President and CEO Dr. Mark Lyons says, "As our customers and partners continue to face many challenges and uncertainties, we determined that 2023 would be dedicated to meeting them in their market." Alltech will welcome the international conference back to Kentucky in 2024, and the company will release more details about the 2023 tour in the coming weeks. *********************************************************************************** Portland to Replace Petroleum Diesel Sales with Biodiesel Portland, Oregon’s city council recently voted to phase out petroleum diesel sales and replace the product with biofuels. The policy focuses on diesel fuel, phasing in requirements for cleaner, renewable fuels, with the goal of achieving 99 percent renewable blend of all diesel fuel sales in Portland by 2030. The rulemaking process and the interim rule allows flexibility to adjust the policy based on real market conditions. While renewable fuel producers are confident that supply will be available in Oregon by 2026, the rollout timeline was extended to 2030 in response to concerns from local industry about supply and cost. City leaders say the efforts reduce dependence on nonrenewable fossil fuels by increasing the required percentage of renewable fuels blended with petroleum diesel. The standard only applies to retailers of diesel fuel located within the city of Portland. Replacing petroleum diesel at the pump is one of the 43 priority actions listed in the Portland Climate Emergency Workplan. *********************************************************************************** Weekly Fuel Prices: Diesel Declines Outpace Gas The nation's average gas price declined for the fifth consecutive week, down 14.4 cents from a week ago to $3.21 per gallon. The national average is down 56.5 cents from a month ago and 11.0 cents per gallon lower than a year ago. The national average price of diesel has fell 14.9 cents in the last week and stands at $4.91 per gallon. GasBuddy's Patrick De Haan says, “We remain on schedule to see the national average gas price fall below $3 by Christmas, with diesel set to fall 50 cents to $1 per gallon over the next six weeks or so.” The keystone XL Pipeline shutdown, De Haan adds, is not expected to impact fuel prices, for now. Under the weight of economic concerns, a possible surge in COVID cases as China works towards re-opening, and a changed psyche that OPEC+ is over-producing, oil prices fell last week to their lowest in nearly a year.
| Rural Advocate News | Tuesday December 13, 2022 |
Tuesday Watch List Markets Just as the Federal Reserve begins its two-day meeting Tuesday, we will all get to see the U.S. Labor Department's report of November consumer prices at 7:30 a.m. CST. The report probably won't stop the Fed from raising rates by a half-percent on Wednesday, as is expected, but it could offer a clue for future decisions. Traders will continue to keep close watch on the latest weather forecasts, any export news and events in Ukraine. Weather A very strong storm system is moving through the Plains Tuesday morning. A line of showers and thunderstorms are creating some severe weather across Texas, which will likely get into Louisiana and adjacent areas this afternoon. Farther north, heavy snow is picking up from Colorado to South Dakota and will expand into Montana, North Dakota, and Minnesota later Tuesday and Tuesday night. Winds are also strong across much of the middle of the country, creating blowing dust in dry areas of the Plains and a blizzard in the heavy snow across the north.
| Rural Advocate News | Monday December 12, 2022 |
USDA Releases December WASDE Report, Corn Exports Drop The December World Ag Supply and Demand Estimates report says the 2022-2023 corn outlook is for lower exports and greater ending stocks. Exports dropped by 75 million bushels as export competition and high U.S. corn prices have slowed sales and shipments. Corn ending stocks grew by 75 million bushels. The season-average corn price dropped ten cents to $6.70 a bushel. Soybean supply and use projections are unchanged from November. Because of the recent EPA proposal on RVOs, soybean oil used for biofuels dropped by 200 million pounds. Oil exports are also at historic lows through November. The season-average soybean price is unchanged at $14.00 per bushel. The December wheat supply and use outlook is unchanged from last month. Global wheat consumption is lowered by 1.6 million tons, mainly on lower feed and residual use by the EU and Ukraine. The season-average farm price is down by ten cents to $9.10 a bushel. *********************************************************************************** Representatives Send Letter to USTR on Mexico’s Upcoming Corn Ban Twenty-four members of the House of Representatives Ways and Means Committee sent a letter to U.S. Trade Representative Katherine Tai about Mexico. They want a resolution to a lingering trade dispute with Mexico over biotech corn imports. “We’ve been working closely with Congress on this issue, and it’s inspiring to see congressional champions faithfully taking up the mantle,” says National Corn Growers Association President Tom Haag. “These members are now looking to Ambassador Tai to uphold the integrity of USMCA.” The letter is the latest development and response from U.S. officials as the ag community braces for a fallout if Mexico follows through on its promise to ban biotech corn shipments in early 2024. Ninety percent of U.S. corn is biotech corn. Ag Secretary Tom Vilsack traveled to Mexico City and met with Mexican President Lopez Obrador, saying the U.S. would consider all options, including formal steps to enforce the terms of USMCA. *********************************************************************************** Beef Agreement Between U.S., Japan Officially Set for January 1, 2023 U.S. Trade Rep Katherine Tai and Japan’s Ambassador to the U.S. confirmed that amendments to the beef safeguard trigger level under the U.S.-Japan Trade Agreement will trigger on January 1, 2023. The letters confirmed both countries completed their procedures to put the protocol in place. “The new beef safeguard agreement will ensure that America’s farmers and ranchers can continue to meet Japan’s strong demand for high-quality U.S. beef,” says Tai. “I’m grateful to leaders and stakeholders in both countries for their dedication and ingenuity, which were important in reaching this outcome.” The new protocol amends the beef safeguard trigger level with a new three-trigger safeguard mechanism. The new amendment allows U.S. beef exporters to more reliably meet Japan’s growing demand for high-quality beef, provides more predictability, and reduces the probability that safeguard duties would get imposed on U.S. beef. All three criteria must be met to impose a tariff on U.S. beef. *********************************************************************************** FCA Issues Latest Report on the Ag Economy The Farm Credit Administration received a quarterly report on economic issues affecting U.S. agriculture and an update on the performance of the Farm Credit System. Inflation and rising interest rates continue to be major economic issues despite a recent slowdown in inflation. Consumer reaction to inflation, higher interest rates, and the labor market will be key drivers for the economy in 2023. Input costs will be important for farmers next year. Volatility in the price of natural gas will continue to be passed on through fertilizer prices. Supply chain difficulties persist with agricultural equipment, leading to high prices and long waits for new equipment and replacement parts. Through the first nine months of 2022, the Farm Credit System reported favorable financial results, including continued loan growth, increased earnings, and robust capital levels despite some decline in the System’s capital-to-asset ratio. Portfolios remained strong despite challenging operating conditions in certain sectors and regions. *********************************************************************************** ASA, Cotton Growers Present Oral Arguments in Dicamba Case The American Soybean Association and the Plains Cotton Growers, Incorporated, presented oral arguments before the D.C. Circuit Court of Appeals last Thursday. It’s a part of the case of the American Soybean Association versus the EPA. The two groups urged the court to clarify jurisdictional rules under FIFRA and to require the Environmental Protection Agency to use the best available science when evaluating dicamba pesticide registrations and potential impacts to species protected by the Endangered Species Act. The groups filed the lawsuit against EPA in November 2020 on the five-year registration for the use of dicamba on dicamba-tolerant soybeans and cotton. Growers argued EPA’s flawed approach led the agency to impose arbitrary and overly burdensome buffers and application cutoff dates. The groups are asking the court to remand portions of the registration back to the EPA for reconsideration with the direction to use the science and data available to the agency. *********************************************************************************** NSP Announces Winners in its Sorghum Yield Contest National Sorghum Producers announced the winners of the 2022 Sorghum Yield Contest. This year’s Bin Buster Award winners are Brant and Amy Peterson of Winsome Farms in Kansas. They had the top yield in the contest at 245.8 bushels per acre. “National Sorghum Producers congratulates the winners of the 2022 Sorghum Yield Contest,” says NSP Board of Directors Chair Craig Meeker. “Despite a challenging growing season, there are impressive top-end yields scattered across the nation. We congratulate the winners and look forward to recognizing them during the 2023 Commodity Classic in Orlando, Florida.” Meeker says the results of this year’s contest show just how resilient sorghum can be. “The Bin Buster yield is six times the 2022 national average yield this year and one of the top ten yields on record in the contest.” While the drought had a significant impact on many sorghum growers, Meeker says they’re very proud of the results.
| Rural Advocate News | Monday December 12, 2022 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts, especially for South America, and still digesting the few changes from Friday's WASDE report. USDA's weekly report of export inspections will be out at 10 a.m. CST and will likely show more soybean movement. The U.S. Treasury reports on the federal budget for November at 1 p.m. Weather A major winter storm system will move out of the Rockies and into the Plains on Monday. Winds will increase ahead of the system, bringing a lot of moisture northward for the system to work with. Widespread precipitation is expected in the middle of the country by late afternoon or evening, including heavy snow and some ice to the north and potential for severe storms along a cold front in the Central and Southern Plains. Temperatures are well above normal for a lot of the country but will be falling below normal as the system moves eastward through the rest of the week.
| Rural Advocate News | Friday December 9, 2022 |
Vilsack to Announce Second Round of Climate-Smart Commodities Investments Agriculture Secretary Tom Vilsack travels to Alabama Monday to announce the second round of investments of the Partnerships for Climate-Smart Commodities funding. Projects from the second funding pool will emphasize the enrollment of small farming and ranching operations, including underserved producers, as well as measurement, monitoring, reporting and verification activities developed at minority-serving institutions. The investment in projects nationwide will expand markets for climate-smart commodities, leverage the greenhouse gas benefits of climate-smart commodity production and provide direct, meaningful benefits to production agriculture, according to USDA. In September, Vilsack announced USDA is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. USDA first announced details of the Partnerships for Climate-Smart Commodities opportunity in February 2022. The 70 projects announced in September are from the first funding pool, which included proposals seeking funds ranging from $5 million to $100 million. *********************************************************************************** AFBF: Labor Challenges Increase Farm Economy Pressures Labor demands continue to tax the bottom lines of farmers and ranchers, with rising wage rates and record usage of the H-2A visa program. The American Farm Bureau Federation says meaningful reforms to the federal government's guest worker program must be a priority for Congress by the end of the year. AFBF and more than 350 other food and farm organizations that are part of the Ag Workforce Coalition sent a letter urging the Senate to pass legislation to address the nation's agricultural workforce challenges this year. The House of Representatives passed a farm labor reform bill, but the legislation needs improvements according to the coalition. The letter states, “The country cannot afford for the Senate to miss this opportunity to provide stability to both farmers and farmworkers.” Recent analysis from AFBF economists indicates that costs associated with farm labor will add to the ever-expanding list of factors straining the farm economy in 2023. *********************************************************************************** October Pork Exports Largest in 16 Months; Beef Exports Already Top $10 Billion October exports of U.S. pork were the largest in more than a year, and beef export volume also increased from a year ago, according to the U.S. Meat Export Federation. U.S. beef exports are on a record pace in 2022 and have already exceeded $10 billion. Pork exports reached 238,190 metric tons in October, up five percent from a year ago and the largest since June 2021. Pork export value increased 13 percent to $697.3 million, the highest since May 2021. For January through October, pork exports were 12 percent below last year at 2.18 million metric tons, valued at $6.26 billion. October beef exports totaled 125,466 metric tons, up eight percent from a year ago. Export value was $929.8 million, down three percent from the large total reported in October 2021. In the first ten months of 2022, beef export value increased 18 percent from last year's record pace to reach $10.05 billion. *********************************************************************************** Lawmakers Introduce Consumer and Fuel Retailer Choice Act of 2022 The prospect of permanent, nationwide availability of the E15 ethanol blend moves closer with new House legislation, according to the Renewable Fuels Association. Representatives Angie Craig, a Minnesota Democrat, and Adrian Smith, a Nebraska Republican, this week introduced the Consumer and Fuel Retailer Choice Act of 2022. RFA President and CEO Geoff Cooper says the legislation will “finally remove a burdensome and nonsensical barrier to the broader deployment of cleaner, more affordable fuels.” Specifically, the legislation would harmonize fuel volatility regulations for ethanol-blended fuels across the country, allowing for the year-round sale of E15 in conventional gasoline markets. It also would supersede an effort by Midwest state governors to make regulatory changes that would assure the availability of E15 sales year-round in their states. In November, RFA and the American Petroleum Institute led a broad coalition that called on Congress to quickly adopt legislation to permanently resolve inconsistent fuel volatility regulations. *********************************************************************************** Caloric Sweetener Availability Dropped 17% Last Two Decades In 2021, the number of caloric sweeteners available for consumption in the United States was 17 percent less than in 1999, falling to 127.3 pounds per person from 153.6 pounds. According to the USDA Economic Research Service's Food Availability Data System, a reduction in the availability of total corn sweeteners contributed to the drop. The availability of corn sweeteners fell from a peak of 85.7 pounds per person in 1999 to 55.3 pounds in 2021. Shifting preferences among consumers and food manufacturers, high corn prices, and competition with refined cane and beet sugars and other caloric sweeteners contributed to the decline. The availability of refined cane and beet sugars fell from 102.3 pounds per person in 1972 to 60.0 pounds in 1986 and remained relatively flat for the next two and a half decades. Refined sugar availability began to rise in 2010, surpassing corn sweeteners in 2011 and reaching 69.7 pounds per person in 2021. *********************************************************************************** National No-Tillage Conference Returns to St. Louis For the ninth time in its 31-year history, the annual National No-Tillage Conference is returning to St. Louis. Hosted by No-Till Farmer, the event will be held January 10-13 at the Hyatt Regency St. Louis Arch Hotel in St. Louis, Missouri. The content covers myriad topics in no-till, including equipment, cover crops, intercropping, economic analyses, soil analysis, fertilizing methods and more. Among the experts presenting are the highest-yielding farmers on the planet, including legendary no-tillers Russell Hedrick of North Carolina, David Hula of Virginia, Randy Dowdy of Georgia, Ray Archuleta of Missouri, and more. The program includes 14 general sessions, 45 roundtables and 23 classroom sessions. The National No-Tillage Conference provides practical tips, and information farmers need to run a more successful and profitable no-till operation. You can learn more about the event and register online at www.no-tillfarmer.com. Organizers say the event delivers insightful learning and unlimited networking with the best of the no-till community.
| Rural Advocate News | Friday December 9, 2022 |
Friday Watch List Markets The U.S. Labor Department will report on producer prices at 7:30 a.m. CST Friday, an important report that will influence Fed policy in the days ahead. The University of Michigan's index of U.S. consumer sentiment for early December is set for 9 a.m. Traders of course, will keep close watch over the latest weather forecasts and will also stop to take in USDA's WASDE and Crop Production reports, due out at 11 a.m. Weather A compact storm system is moving through the Midwest on Friday, producing a band of mixed precipitation and some moderate snow. The system will continue to track eastward through the region throughout the day, weakening as it moves into the Appalachians. At the same time, a lingering front across the South continues to see showers Friday morning that should continue as well. Friday night, a small disturbance will build on that front across the Southern Plains with more enhanced showers and thunderstorms going into the weekend.
| Rural Advocate News | Thursday December 8, 2022 |
Top House Ag Republican Wants Enhanced Safety Net The top Republican on the House Ag Committee wants a stronger safety net for U.S. farmers. Pennsylvania Republican Glenn Thompson wants Congress to strengthen crop insurance and farm subsidy programs so producers don’t have to rely on stop-gap federal aid to survive challenges like trade wars, natural disasters, and COVID-19. “The need for a reliable farm safety net is paramount,” says Thompson. He will likely become the committee chair in January when Republicans gain a slim majority in the House. Agriculture Dot Com says almost 80 percent of federal agriculture funding has moved through bailout programs since 2018. Farm groups want higher reference prices, a factor in calculating subsidy payments, and more protection under the federal crop insurance program. Some industry experts say a status-quo farm bill is possible because of the small majorities in the House and Senate and a potential lack of new funding sources for the farm bill. *********************************************************************************** Bunge Expecting Big Jump in Renewable Diesel Production The U.S. is about to more than double its production capacity for renewable diesel. Reuters says that prediction comes from Greg Heckman, the CEO of Bunge, who says the country’s production capacity should hit five billion gallons by 2024. Heckman recently said his company hasn’t changed its own capacity plans after the recent RFS blending requirements didn’t increase as much as the industry expected. “Demand is up,” he says. “It’s sure not affecting us as we’ve been making plans for the long term.” Bunge formed a joint venture with Chevron in 2021 and announced plans to expand processing capacity by 2024 at Bunge’s soy-crushing facilities in Illinois and Louisiana. Those beans can be used to produce soy-based biodiesel. Other companies like JP Morgan say the EPA’s proposal on biofuel blending requirements calls for a “surprisingly low amount of growth,” and they worry about an oversupply of biodiesel without large enough mandates. *********************************************************************************** Consider Corn Challenge Winner Almost Ready for Commercialization ExoPolymer, Inc. won the Consider Corn Challenge 2 Contest and has taken its idea one step closer to commercialization. The new partnership with CP Kelco will help the company scale up the production of a new polysaccharide-based polymer. It’s domestically-produced by microbial fermentation using corn sugar as a feedstock. “We’re thrilled to see a previous Consider Corn Challenge winner, Derek Wells and ExoPolymer, continue to reach key milestones and get closer to commercializing their ideas,” says NCGA Director of Market Development Sarah McKay. “This is our hope for all winners and is the goal of the contest.” NCGA also says it wants to highlight some of the great research going on using corn as an industrial feedstock, which in turn increases corn demand. If all 15 winners of the Consider Corn Challenges reached full commercialization with products available in the marketplace, that could be an additional 3.4 billion bushels of new corn demand. *********************************************************************************** USDA Investing $981 Million to Expand Market Opportunities Ag Secretary Tom Vilsack announced his department is investing $981 million to help create new and better market opportunities and expand services for rural people, businesses, and entrepreneurs. The funds will be used to assist people in 47 states, Guam, and the Virgin Islands. “Rural people provide the everyday essentials our country depends on,” he says. “The partnerships we’re announcing today demonstrate USDA’s commitment to advocating for rural business owners and building brighter futures for everyone in rural America.” The funding will keep resources and wealth made by rural people right at home through affordable financing and technical assistance. It will also help rural Americans start businesses and allow small business owners to grow. It also opens doors to new economic opportunities for communities and people who’ve historically lacked access to resources and funding. USDA is making 242 awards through eight programs designed to create economic opportunities for rural people and businesses. *********************************************************************************** USDA Letter Emphasizing Western Drought and Conservation Priorities Senators Micheal Bennet of Colorado and Mitt Romney of Utah led a bipartisan group of 14 senators in sending a letter to USDA about the western drought and conservation priorities. They’re asking the agency to give parity to the urgent priorities of Western growers and communities through existing authorities, new funding, and collaboration across government. “The American West is in crisis,” the senators say in the letter. “Farm and ranch families hang in the balance as they grapple with a 22-year mega-drought.” They also say the acute shortage of water for Western growers threatens productive farmland across our states, which are both a pillar of rural economies and drivers of American food production. In the letter, the senators asked USDA to support Western farmers and ranchers to conserve water, improve water infrastructure and efficiency, protect lands at risk of erosion, and provide technical assistance for growers in regions hurt by drought. *********************************************************************************** There are Enough Christmas Trees to Meet the Demand The Christmas tree industry wants Americans to know there will be enough trees available to meet the demand for real Christmas trees. Marsha Gray, executive director of the Real Christmas Tree Board, says,” The industry met the demand in 2021 and will do so again this year. This is a year with few surprises.” Gray also says their annual survey found that 86 percent of real Christmas tree buyers had no problems finding a nearby place to get their trees in 2021. “Our grower survey tells us the demand for real trees is healthy,” Gray says. “Retailers see steady consumer interest in real Christmas trees and supply is pretty well matched to that interest.” Like many other sectors of U.S. agriculture, Christmas tree growers say their input costs have risen compared to last year. Consequently, many growers had a five to 15 percent increase in their wholesale prices compared to last year.
| Rural Advocate News | Thursday December 8, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. Trading may be cautious ahead of Friday's WASDE report and traders will keep an eye on the latest weather forecasts and any news of an export sale. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Weather A storm system moving through the Central and Southern Plains northeast through the Ohio Valley is already producing a wide band of moderate rainfall from Oklahoma to Kentucky Thursday morning. The storm will fill in farther north later in the day with some potential for freezing rain and a band of moderate snow going through Nebraska into southern Minnesota and Iowa. The snow will continue across Wisconsin and Michigan on Friday. Temperatures are rising across most areas regardless of precipitation moving through.
| Rural Advocate News | Wednesday December 7, 2022 |
Farmer Sentiment Unchanged Despite High Costs, Rising Interest Rates There wasn’t much movement in the November Purdue University/CME Group Ag Economy Barometer. The index read 102 for the month, unchanged from October. However, the Current Conditions Index dropped three points to 98, while the Future Expectations Index rose two points to a reading of 104. Even though producer sentiment was the same in November, producers are continuing to look at their bottom line and rising interest rates. Combine that with high input and energy costs, and there’s a lot of anxiety at the farm level. Forty-two percent of the survey respondents list high input costs as their top concern in the year ahead. The Farm Capital Investment Index dropped to a record low of 31 in November. Almost 80 percent of the respondents said it’s a “bad time” to make large investments in farm machinery. Just over one-fourth of the respondents have made operational changes due to rising energy prices. *********************************************************************************** Poll Shows Voters Support Immigration Reform A poll of voters commissioned by the International Dairy Foods Association shows strong support for reforming immigration policy as a way to help control food prices. Almost 90 percent of Democrat voters and 79 percent of Republican voters support the idea of immigration reform. When asked about the price of food, it was an almost unanimous 94 percent who said that rising food prices are a problem in America. It turns out that over 40 percent of the voters see a connection between immigration issues and rising food costs. Democrat and Republican voters aren’t aligned in connecting immigration issues with rising food costs. Over half of Republican voters say they’re connected while only one-third of Democrats do. Over half of the voters, including 55 percent of Democrats and 58 percent of Republicans, support Congress passing substantial immigration reform. Older voters, post-graduate voters, and urban voters are the most supportive of reform *********************************************************************************** Rabobank: Fertilizer Prices Lower in 2023 Fertilizer consumption suffered in 2022 due to market volatility and record-high prices. However, a new Rabobank report says a recovery in consumption is possible in some regions next year, with fertilizer prices lowering and commodity prices at historically high levels. “The affordability index’s moving average is trending lower as fertilizer prices are returning to pre-Ukraine War levels,” says Rabobank. “For the next three months, the index will continue to trend downward but remain above normal.” The key point to watch for is nitrogen products, as the natural gas crisis in Europe has the potential to make urea and ammonia more expensive and could keep the index at a high level. Rabobank says the nitrogen-based fertilizer market is the most volatile among all fertilizers due to its connection with oil and natural gas markets. As those commodities get more volatile, urea and ammonia prices are expected to go along with the tide. *********************************************************************************** Export Inspections of Corn and Wheat Improve USDA says export inspections of corn and wheat rose while soybean assessments declined during the week ending on December 1. Corn inspections were just over 524,300 metric tons. That’s up from 311,700 tons the prior week. It’s still behind the 786,000 tons inspected during the same time last year. Wheat assessments reached 334,650 metric tons during the week, up from 284,500 tons during the previous week. It’s also ahead of the 285,000 tons inspected at the same time last year. Soybean inspections dropped to 1.72 million metric tons during the week, a significant drop from 2.23 million tons the prior week. Since the marketing year began, the agency has inspected 6.34 million metric tons of corn, 21.2 million metric tons of soybeans, and 10.9 million metric wheat tons. Last year at this time, the agency had inspected 9.42 million metric tons of corn, 23.8 million tons of soybeans, and 11.2 million tons of wheat. *********************************************************************************** Pork Checkoff Rate Adjustment on January 1 The Pork Checkoff rate will drop by five cents on January 1, 2023, to 35 cents per $100 of value. This change is the result of a resolution passed by voting delegates at the 2022 Pork Industry Forum. Pork Checkoff payments are collected for all pigs sold with a change of ownership. This includes the sale of weaned pigs, breeding age animals, and at the final market destination. Payments received by NPB for pigs sold on or after the first of the year will reflect the reduced rate. The rate change was recommended by the Pork Industry Vision Task Force, a group of 19 leaders from NPB, NPPC, and various state associations, to ensure the pork industry’s long-term success. Other actions from the task force included creating a joint producer-led working group of NPB and NPPC state leaders to conduct animal industry planning, prioritize issues, identify risks, and develop action plans. *********************************************************************************** NCBA Pleased with Cattle Contract Library Final Rule The National Cattlemen’s Beef Association welcomed the release of the final rule from the USDA to establish the Cattle Contract Library Pilot Program. This program was authorized following NCBA’s congressional engagement on the Consolidated Appropriations Act of 2022. “We are pleased that USDA listened to the feedback from industry stakeholders like NCBA while crafting the final rule for the Cattle Contract Library Pilot Program,” says NCBA senior director of government affairs Tanner Beymer. “We are hopeful that this pilot program will strike an appropriate balance between offering cattle producers additional insight into the market while also protecting their proprietary business information.” Beymer also says a Cattle Contract Library is just one of the many tools that NCBA has advocated for to help producers make informed business decisions and capture the most value possible for their cattle at sale time. NCBA provided USDA with feedback throughout the testing phase of the program.
| Rural Advocate News | Wednesday December 7, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CST Wednesday, the U.S. Labor Department will have a report on third-quarter U.S. productivity, followed by the Energy Department's weekly inventory report, including ethanol production. Traders will continue to monitor the latest weather forecasts, especially for Argentina where drought concerns lifted Tuesday's soybean prices. Traders will also watch for possible export sales announcements at 8 a.m. CST, after USDA reported 18.5 million bushels of U.S. soybeans sold Tuesday. Weather Remnants of a front across the Tennessee Valley will continue to produce scattered showers Wednesday. A disturbance across the north will provide scattered snow showers. Scattered showers will continue to develop across the Southern Plains and Mississippi Delta today and tonight. Temperatures will be below normal across the Northern Plains and northern Upper Midwest with near-normal temperatures across the Central Plains and southern Upper Midwest. Temperatures will remain well above normal across the South.
| Rural Advocate News | Tuesday December 6, 2022 |
Farm Capital Expenditures Increasing with Farm Income Rise In response to relatively stronger net farm incomes, U.S. farm sector capital expenditures have increased dramatically in the last three years, according to research by the University of Illinois. In 2019, farm sector capital expenditures were approximately $30.1 billion. The forecasted value for 2022 is $44.2 billion. Capital expenditures include tractors, trucks, autos, machinery, buildings, land improvements, and miscellaneous expenditures. Capital consumption represents the declining balance of capital stock or economic depreciation. The ratio of capital expenditures to capital consumption increased from 1.06 in 2019 to 1.70 in 2022. The data implies that farmers have used a portion of their strong net farm incomes in the last few years to replenish their capital stock. The changes in expenditures during the last four years have differed among expenditure categories. Specifically, increases were larger for tractors and machinery than for autos, trucks, buildings, and land improvements. *********************************************************************************** Food Price Index in November Virtually Unchanged The FAO Food Price Index averaged 135.7 points in November 2022, virtually unchanged from October. The index offered month-on-month decreases in the price indices for cereals, dairy and meat, nearly offsetting increases in vegetable oils and sugar. At this level, the index stood only marginally above—0.3 percent—its corresponding value in November 2021. The Cereal Price Index averaged 150.4 points in November, down 1.9 points from October, but still 6.3 percent above its value a year ago. The Oil Price Index averaged 154.7 points, up 3.4 points after declining for seven consecutive months. The Dairy Price Index averaged 137.5 points, down 1.7 points, but remained 9.2 percent above its value a year ago. The Meat Price Index averaged 117.1 points, down 1.1 points from October, but 4.1 percent above its value a year ago. Finally, the Sugar Price Index averaged 114.3 points in November, up 5.7 points from October. *********************************************************************************** Cover Crop Mixes account for 18 – 25% of Cover Crop Acreage USDA’s Economic Research Service finds cover crop mixes account for 18 to 25 percent of acres with cover crops. However, the use of single-species cover crops is more common. For corn fields in 2021, almost 75 percent of acres with cover crops used a grass or small grain cover crop, such as cereal rye, winter wheat, or oats. At 44 percent of acreage, cereal rye was almost twice as common as winter wheat as the cover crop on corn for grain fields. Rye and winter wheat were also the most common cover crops on soybean fields in 2018. Winter wheat was the most common cover crop used on cotton fields in 2019. Farmers add cover crops to a rotation to provide living, seasonal soil cover between the planting of two cash or forage crops. Including cover crops in a rotation can provide benefits such as improved soil health and water quality, weed suppression, and reduced soil erosion. *********************************************************************************** USDA Launches New Virtual Nutrition Center of Excellence The Department of Agriculture Monday announced the new Agricultural Science Center of Excellence for Nutrition and Diet for Better Health. The virtual center is part of President Biden’s Cancer Moonshot effort to end cancer as we know it. Agriculture Secretary Tom Vilsack says, “The virtual center will connect existing resources, including people and programs, to leverage expertise and increase coordination and cooperation.” USDA is enhancing its research focus on precision nutrition science to better understand the needs of underserved communities. The research complements efforts to advance food and nutrition security – which means consistent and equitable access to healthy, safe and affordable foods essential to optimal health and well-being, according to USDA. The World Cancer Research Fund claims 30-50 percent of all cancer cases are preventable by following a healthy diet and lifestyle. As part of the announcement, USDA convened a panel of experts that discussed nutrition's role in improving overall health and reducing risks for diet-related chronic diseases. *********************************************************************************** EPA Proposes Elimination PFAS Reporting Exemption The Environmental Protection Agency Monday proposed a rule to end an exemption used to avoid disclosure of certain PFAS releases. The exemption allows facilities to avoid reporting information on PFAS when those chemicals are used in small or minor concentrations. Because PFAS are used at low concentrations in many products, the rule would ensure that covered industry sectors and federal facilities that make or use PFAS will no longer be able to rely on the exemption to avoid disclosing their PFAS releases and other waste management quantities for these chemicals. PFAS chemicals have been used to make various commercial products, including non-stick cookware, stain-resistant carpets and furniture, water-resistant clothing, coated oil-resistant paper and cardboard food packaging, and some personal care products. Agriculture and PFAS chemicals can intersect through air, water, and soil, according to the Maine Department of Agriculture. One way that PFAS may enter soil is through the application of residuals such as biosolids, industrial sludges and ashes. *********************************************************************************** Gas, and Diesel Prices Fall Again The national average gas price fell 15.8 cents over the last week, down to $3.36 per gallon. The national average is down 43 cents from a month ago and 1.5 cents per gallon higher than a year ago. The national average diesel price fell 13.6 cents last week to $5.06 per gallon. GasBuddy's Patrick De Haan says, “it remains very possible the national average could fall under $3 per gallon by Christmas.” De Haan expects diesel prices to fall under $5 per gallon this week, and soon reach its lowest level since March of this year. While the declines are welcomed, De Haan cautions that there may be some concerns coming as the price cap on Russian oil kicks in. Further, retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production. Meanwhile, U.S. retail gasoline demand rose last week by 2.3 percent, bouncing back the week after Thanksgiving.
| Rural Advocate News | Tuesday December 6, 2022 |
Tuesday Watch List Markets The U.S. Census Bureau's report on international trade data for October is set for 7:30 a.m. CST and will provide USDA with more specific trade data later Tuesday morning. Traders will keep an eye on the latest weather forecasts, watch for a possible export sales announcement at 8 a.m. and any other news that emerges. Weather Remnants of a front across the Tennessee Valley will produce scattered showers throughout the day. A disturbance across the north will provide scattered snow showers. Scattered showers develop across the Southern Plains late tonight. Temperatures will be below normal across the Northern Plains with near-normal temperatures across the Central Plains and Upper Midwest. Temperatures will remain well above normal across the South.
| Rural Advocate News | Monday December 5, 2022 |
Senate Passes Bill to Avert Catastrophic Rail Strike The Senate passed a bill to avoid a potentially catastrophic U.S. railroad strike and sent the bill to President Biden’s desk for his signature. Crossroads Today says the vote came after mounting pressure on lawmakers to move swiftly. Without action, a strike could have taken place on December 9, which the president said would be catastrophic to the nation’s economy. Railroads transport 6,300 carloads of food and farm products every day. The bill passed the Senate by a vote of 80 to 15. A separate vote on adding seven days of paid sick leave to the agreement didn’t pass. Biden was reluctant to override the vote against the contract by four unions but stressed the rail shutdown would devastate the economy. “I know that many in Congress were reluctant to bypass union ratification procedures, but the consequences would have been too great for working families across the country,” Biden said. *********************************************************************************** Positive Reaction to Senate Action Preventing Rail Shutdown Ag Secretary Tom Vilsack is grateful for Congress taking swift action to prevent a crippling national rail shutdown. “A rail strike would have had significant and long-lasting effects on the American economy,” Vilsack says. “U.S. farmers and ranchers can breathe a sigh of relief that the trains will stay on track to deliver food, inputs, raw materials, and other essential items.” The Fertilizer Institute also applauded Congress for taking action to prevent a stoppage. “The rail strike would have severely disrupted fertilizer deliveries and hurt domestic production,” says TFI president and CEO Corey Rosenbusch. “Rail is critical to fertilizer movement year-round.” The American Feed Industry Association also appreciates the Congressional action to avoid a strike. “Slowing or stopping the transport of goods via rail threatens the livelihoods of those hardworking Americans well beyond our nation’s tracks,” says AFIA president and CEO Constance Cullman. America’s railways move one-quarter of all U.S. grain products. *********************************************************************************** December Farm Income Forecast Shows Higher Profits Net farm income for U.S. farmers is forecast at $160.5 billion in 2022, a $19.5 billion increase over 2021. The December Farm Sector Income and Finances report shows net cash farm income forecast at $187.9 billion in 2022, $29 billion higher than in 2021. Cash receipts from agricultural commodity sales will increase by $105 billion from 2021 to $541.5 billion this year. However, farm sector debt will increase by $27.8 billion in 2022 to almost $502 billion. Farm sector debt-to-asset levels will improve from 13.5 percent last year to 13 percent in 2022. Working capital, the amount of available cash to fund operating expenses after paying off debt due within 12 months, will rise 4.7 percent in nominal dollars but drop 1.4 percent when adjusted for inflation. Dairy farms will likely see the biggest jump in average net cash farm income, while specialty crops, cotton, and hogs the biggest decline. *********************************************************************************** Senator Wants AM Radio in Electric Vehicles Massachusetts Democratic Senator Edward Markey sent letters to 20 car manufacturers requesting they maintain AM radio in their vehicles, including the new EV models. In the letter, Markey says consumers still value AM radio and stressed that free broadcast radio is a critical and reliable channel for local, state, and federal government officials to communicate with the public. He also wants automakers to adopt technological solutions to address any electromagnetic interference that EVs cause with AM radio signals. “Despite innovations such as smartphones and social media, AM/FM broadcast radio remains the most dependable, cost-free, and accessible communication mechanism for public officials to communicate with the public in emergencies,” Markey says. “As a result, any phase-out of broadcast AM radio could pose a significant communication problem in an emergency.” Although investments in electric vehicles are critical in addressing the climate, automakers don’t need to sacrifice the benefit of radio in the process. *********************************************************************************** NCGA: Mexico Banning White Corn a “Non-Starter” in Negotiations The National Corn Growers Association appreciates Ag Secretary Tom Vilsack’s efforts by traveling to Mexico City to discuss Mexico’s pending ban on biotech corn imports that goes into effect in 2024. Vilsack spoke with Mexican President Lopez Obrador about the importance of finding an acceptable resolution on the matter. President Obrador indicated last week that there might be room for compromise, suggesting the country would continue allowing imports of yellow corn used for livestock feed but would block white corn, imported mainly for human consumption. However, yellow corn is also food grade and nutritious in hundreds of products consumers enjoy. “Any decision to block biotech crops by Mexico would be illegal under the USMCA agreement,” says NCGA President Tom Haag. “Eliminating white corn will in no way resolve this matter.” Haag also says his group highly appreciates Secretary Vilsack for “going to the mat” on this issue for American farmers. *********************************************************************************** Soy Growers Disappointed in EPA RFS Proposal The Environmental Protection Agency released its draft “set” rule, which sets the annual biofuel blending targets for 2023-2025 under the Renewable Fuel Standard. Soy farmers were initially pleased with EPA’s 2022 volume target, which included the highest-ever number for total renewable fuels and specifically biomass-based diesel since the RFS was created. The new proposal goes in the other direction. “This rule slams the breaks on progress being made in biofuel investments and growth,” says American Soybean Association president Brad Doyle. “Instead of continuing to support available low-emission, plant-based fuel sources, EPA has changed course and seems to ignore major investments in and consumer demand for biomass-based diesel and other biofuels that exist right now.” The multi-year set rule is supposed to provide consistency and encourage investment in the biofuels industry. ASA says these insignificant volume increases for 2023-2025 could not only stifle growth but also jeopardize the existing biofuels industry.
| Rural Advocate News | Monday December 5, 2022 |
Monday Watch List Markets Back from the weekend, traders will be reading about the outcome of OPEC's Sunday meeting and checking out the latest weather forecasts, especially in South America where Argentina needs rain. A report of U.S. factory orders in October is due out at 9 a.m. CST, followed by USDA's weekly report of export inspections at 10 a.m. There will be no more Crop Progress reports until next spring. Weather An old front across the Tennessee Valley will produce scattered showers throughout the day. Another front moving down through the northern states will produce some showers as well. Temperatures will be mild for most of the country despite the fronts, except down across the South where temperatures will rise well above normal.
| Rural Advocate News | Friday December 2, 2022 |
EPA Releases 2023-2025 RFS Volumes The Environmental Protection Agency released the long-awaited 2023-2025 Renewable Fuel Standard blending volumes. The Renewable Fuels Association says the proposal creates a path for sustainable growth in the production and use of low-carbon renewable fuels. EPA proposes setting the 2023 RFS requirement at 20.82 billion gallons, of which 5.8 billion gallons will come from advanced biofuels and 15 billion from conventional renewable fuels. EPA also proposes an extra 250 million gallons in addition to the standards to address a 2017 D.C. Court decision. For 2024, the proposal is for 21.87 billion gallons, 6.62 billion gallons of advanced biofuels, and 15.25 billion of conventional. In 2025, EPA proposes requiring 22.68 billion gallons of total renewable fuels, including 7.43 billion gallons of advanced biofuels and 15.25 billion conventional. “The proposal solidifies a role for the RFS to reduce carbon emissions and enhance our energy security,” says RFA president and CEO Geoff Cooper. *********************************************************************************** Clean Fuels Alliance says EPA Proposal Underestimates Biomass-Based Diesel Clean Fuels Alliance America criticized the Environmental Protection Agency’s proposed Renewable Fuel Standard volumes for 2023 through 2025 for undercutting investments in biodiesel and renewable diesel capacity. The minor increase for biomass-based diesel volumes in 2023, 2024, and 2025 are below the industry’s existing production and ignores the clean fuels industry’s significant investments in new capacity. The group says those volumes provide no additional space for sustainable aviation fuel and short-circuit the nation’s carbon emission goals. “The volumes EPA proposed ignore the over three billion gallons currently in the market and fail to account for the planned growth of the sector,” says Kurt Kovarik, CFA vice president of federal affairs. “The soybean and canola industries invested over $4 billion to bring additional feedstock capacity online in the future.” An additional 2.4 billion gallons of renewable diesel capacity is coming online by 2024, and Kovarik says EPA’s numbers undercut the investments. *********************************************************************************** USDA Lowers Farm Export Forecast American farm exports will drop to $190 billion during the current fiscal year. USDA says that’s four percent lower than the record set in the recently-ended 2022 fiscal year. The lower forecast is caused by slowing economies around the world. Soybeans, corn, and cotton will see the largest declines, dropping a combined seven percent. “The global economic outlook in 2023 is uncertain due to factors like inflation and trade disruptions caused by Russia’s invasion of Ukraine,” the agency says in its Quarterly Outlook for U.S. Agricultural Trade. Global economic growth was forecast at 2.7 percent, down from 3.2 percent this year. Central banks around the world are tightening their money supplies to combat inflation, with China a notable exception. Exports hit a record $196.4 billion during the fiscal year that ended in September. One-fifth of American agricultural production gets exported, so foreign markets are a major factor in farm revenue. *********************************************************************************** Corn Harvest Quality Report Shows Higher Test Weight, Protein Content The U.S. Grains Council’s 2022-2023 Corn Harvest Quality Report has good things to say about this year’s corn crop. The report says the corn crop entering the marketing channel has a higher average test weight, higher protein concentration, and lower total damage relative to each quality factor’s average over the previous five crops. Cooler spring temps and hot, dry weather contributed to reduced yields for this year’s crop but accelerated maturation. Clear weather at harvest helped to maintain crop quality. “This report is intended to help buyers make well-informed decisions by providing reliable and timely information about the quality of the current U.S. crop,” says Kurt Shultz, USGC director of global strategies. “This year’s supply will help the U.S. remain the world’s leading corn exporter and will account for an estimated 30 percent of global corn exports during the upcoming marketing year.” The 2022 U.S. corn crop came in at 13.93 billion bushels. *********************************************************************************** NCBA Applauds Protect Farmers from the SEC ACT in Senate The National Cattlemen’s Beef Association supports the Senate version of the Protect Farmers from the SEC Act, a companion bill to legislation introduced into the House of Representatives by Oklahoma Republican Frank Lucas. “The Securities and Exchange Commissions’ overly broad rulemaking has the potential to increase burdens on cattle producers by requiring data that’s impossible to provide,” says NCBA Chief Counsel Mary-Thomas Hart. “The NCBA is proud to support the act because it ensures that federal regulators don’t overstep their jurisdiction and protects cattle producers from government red tape.” The act excludes agriculture from the reporting Scope 3, or supply chain, greenhouse gas emissions under the SEC’s proposed climate disclosure rule. While the rule is aimed at large publicly-traded companies, ag operations could be subjected to additional reporting as part of the supply chain for public restaurants and retailers. “We thank Senators Boozman and Braun for focusing on the issue,” Hart says. *********************************************************************************** USDA Expands Revenue Protection for Oat and Rye Producers The country’s oat and rye producers can now benefit from revenue protection, a new crop insurance option available through the USDA. After listening to growers, the Risk Management Agency expanded the Small Grains Crop Provisions to offer revenue protection for 2023 oat and rye crops. “This enhanced coverage for oats and rye is a direct result of RMA listening to and prioritizing the feedback we get from farmers,” says RMA Administrator Marcia Bunger. “We are always working to offer risk management options and opportunities that are in the producers’ best interests.” Before the program change, RMA established prices for oats and rye up to 11 months before harvest. In 2021 and 2022, the oat prices increased about byy 30 percent, leaving producers with insurance coverage below the value of their crops. Now, the insurance coverage price will rise to follow any higher oat prices and provide coverage reflecting the crops’ true value.
| Rural Advocate News | Friday December 2, 2022 |
Friday Watch List Markets Friday will feature early government releases of both the non-farm payrolls report and the unemployment rate. We will also be watching for any additional news on the railroad strike situation, along with any new export sales announcement. Weather A storm system is moving out of the Rockies on Friday. The system is somewhat strong, though precipitation is rather light with it. Some decent snow will fall across the Northern Plains and Upper Midwest, but the cold front that rushes through the middle of the country Friday will generally be dry. Winds on the other hand will not be quiet with strong gusts in the Plains and into the Midwest both ahead of and behind the front. With some better moisture well ahead of the front, isolated showers will pop up in the Delta region and adjoining areas. Temperatures well-above normal ahead of the front will come crashing down again in our rollercoaster ride of active weather.
| Rural Advocate News | Thursday December 1, 2022 |
House Acts to Prevent Rail Strike The House of Representatives Wednesday took action to avert a pending rail strike. House Speaker Nancy Pelosi, on the house floor Wednesday, stated, "A shutdown would grind our economy to a halt, and every family would feel the strain,” while adding, “Small businesses wouldn't be able to get their products to market. Many of them, as I say, farmers.” National Farmers Union President Rob Larew says the action is “a positive step toward keeping that chain moving,” referring to the agricultural supply chain’s reliance on rail access. The resolution will now go to the Senate for consideration. It will need 60 votes to pass the Senate before arriving at President Biden’s desk for his signature. Pelosi pledged two actions by the House, with the first being the resolution to prevent a rail strike. The second action by the House is a separate measure that would give railway employees seven days of paid sick leave per year. *********************************************************************************** McDonald’s Files Lawsuit Alleging Pork Price Fixing McDonald’s this week filed a lawsuit against pork packing companies alleging price fixing. The lawsuit names Agri Stats, Clements Food Group, Hormel Foods, JBS USA, Seaboard Foods, Smithfield Foods, Triumph Foods and Tyson foods as defendants in the case. Legal documents show McDonald’s claims the defendants and their coconspirators collectively control over 80 percent of the wholesale pork market. The lawsuit alleges the defendants entered into a conspiracy from around 2008 or early 2009 through the present to fix, raise, maintain, and stabilize the price of pork. McDonald's claims defendants implemented their conspiracy by agreeing with their competitors to restrict output and limit production. The lawsuit says that the data compiled by Agri Stats is a classic enforcement and implementation mechanism of a price-fixing scheme. Because of the alleged price fixing, McDonald's claims it paid inflated prices for pork during the time frame outlined in the lawsuit, adding, Thus, plaintiff suffered injury and damages due to defendants’ anticompetitive conduct." *********************************************************************************** Specialty Crops Growth Shows Need for Expanded Risk Management Tools Specialty crops, including fruits, vegetables and nuts, make up almost one-third of total crop sales in the United States, but many specialty crop acres remain uninsured. American Farm Bureau Federation economists recently examined specialty crop coverage. The Market Intel report found that more than 80 percent of the acreage of hazelnuts, kiwifruit, strawberries and lettuce remain uncovered through the Federal Crop Insurance Program or Noninsured Crop Disaster Program. Meanwhile, more than 50 percent of walnut, pecan, peach, squash, sweet corn, watermelon, pumpkin, cucumber and pepper acreage lacks coverage. Since 2000, risk management participation has increased in most specialty crop categories. AFBF has made expanding insured commodities to include specialty crops one of its priorities for the 2023 farm bill. Farm Bureau President Zippy Duvall says, “The 2023 farm bill should recognize those differences and offer programs that provide the same protections regardless of what a farmer chooses to grow.” *********************************************************************************** NCGA Applauds New Legislation Resolving E15 Uncertainty A group of Midwest lawmakers this week introduced the Consumer and Fuel Retailer Choice Act. The legislation would ensure permanent, full-market access to E15, often marketed as Unleaded 88. The National Corn Growers Association applauded the legislation. NCGA President Tom Haag says the legislation "will ensure drivers across the country continue to have year-round access to safe, low-cost, low-emission E15." Senator Deb Fischer, a Nebraska Republican, and Amy Klobuchar, a Minnesota Democrat, introduced the bill with 13 bipartisan cosponsors. Despite EPA approving E15 for use in all 2001 and newer vehicles and a 2019 update to regulations, a 2021 court decision would have ended year-round market access to E15 last summer without the Biden administration using emergency authority to keep E15 in the market. Ensuring continued E15 sales year-round keeps a lower-emission fuel choice in the marketplace that costs less, according to NCGA. E15 cuts evaporative, carbon and tailpipe emissions compared to standard 10 percent ethanol blended fuels. *********************************************************************************** CFTC Ag Committee Announces December Meeting Agenda The Commodity Futures Trading Commission's Agricultural Advisory Committee Wednesday released the agenda for its public meeting. The meeting is scheduled for December 7 at the CFTC headquarters in Washington, D.C. At the meeting, the committee will focus on topics related to the agricultural economy, including geopolitical and sustainability issues and recent developments in the agricultural derivatives markets. The committee will also address procedural matters, including topics of discussion on a forward-looking basis. Chairman Rostin Behnam says, “The Commission remains committed to maintaining the integrity of our agricultural derivatives markets.” Agenda items include the state of the agricultural economy, price limits in agricultural markets, and shipping, freight and storage impacts on grain. The CFTC Agricultural Advisory Committee advises the CFTC on issues involving the trading of agricultural commodity futures and options. Members of the committee represent agribusinesses, farmer organizations, including the American Farm Bureau Federation and agricultural banking groups. *********************************************************************************** U.S. Live Holiday Plant Imports Reach $80 Million In 2022 Christmas trees and poinsettias are iconic symbols of the holiday season. While the vast majority are grown in the United States for domestic use, a small share of both plants are imported from Canada, according to USDA’s Economic Research Service. Trade is highly seasonal, with 99 percent of Christmas trees and 95 percent of poinsettias shipping between November and December. From 2000–15, live Christmas tree imports averaged around two million trees per year at an inflation-adjusted annual value of $36.1 million. However, by 2022, live tree imports reached nearly 2.8 million trees at a value of $68 million. Import values of live trees had previously spiked in 2020 because of COVID-19 supply chain issues, and prices have remained relatively high since. In the early 2000s, the United States imported as many as 5.9 million live Poinsettias per year before that number dipped to 1.2 million in 2011. In 2022, live poinsettia imports totaled 2.2 million plants worth $11.5 million.
| Rural Advocate News | Thursday December 1, 2022 |
Thursday Watch List Markets There are a host of government reports scheduled for release Thursday, including Initial Jobless Claims, Core Price Index, manufacturing index and real consumer spending. We will also be watching for the Senate vote on the railroad agreement, new export sales, and any news from China about COVID developments. Weather A system out in the West will continue to push through the region on Thursday with widespread precipitation. Winds and temperatures out in the Plains will increase as a result of the approaching storm but little precipitation is expected east of the Rockies until tonight with snow developing for the Northern Plains.
| Rural Advocate News | Wednesday November 30, 2022 |
Vilsack Talks Biotech Corn in Mexico Agriculture Secretary Tom Vilsack met with Mexican President Andrés Manuel (man-WELL) López Obrador earlier this week. The leaders discussed a looming decree by the Mexican president that would ban imports of biotech corn into the country. In a statement following the meeting, Vilsack commented, "We must find a way forward soon and I emphasized in no uncertain terms that – absent an acceptable resolution of the issue – the U.S. Government would be forced to consider all options.” The options available include taking formal steps to enforce legal rights under the U.S.-Mexico-Canada Agreement. National Corn Growers Association CEO Jon Doggett replied, “Today’s meeting shows that the Biden administration is listening to NCGA and American corn grower leaders and that Secretary Vilsack is willing to go to the mat for America’s farmers.” The Mexican President has promised to enact a decree that would end imports of corn grown using biotech and certain herbicides by 2024. *********************************************************************************** Industry Welcomes Biden Call to Congress on Potential Rail Strike Agriculture groups welcome President Biden's call on Congress to avert a potential rail worker strike. Corey Rosenbusch of The Fertilizer Institute praised the action by Biden, adding, “Congress must act now to ensure that fertilizers and other critical materials and goods that U.S. consumers rely on every day get to where they are needed.” The Fertilizer Institute has been heavily engaged in efforts to avert a nationwide rail network shutdown and will continue to do so until the matter is resolved. The call from Biden followed a meeting with cabinet members on the issue. Agriculture Secretary Tom Vilsack adds, “in this case – where the economic impact of a shutdown would hurt American agriculture and millions of other working people and families –Congress must use its powers to adopt this deal.” Vilsack joined President Biden in calling on Congress to quickly pass legislation adopting the Tentative Agreement between railroad workers and operators. *********************************************************************************** Removal of Trade Barriers Could Increase China’s Ag Imports China imported more than $205 billion of agricultural products in 2021, including more than $37 billion from the United States. However, USDA Economic Research Service points out that trade barriers deterred China's imports from reaching even higher levels. China's import barriers create what are called "price wedges," in which domestic prices for agricultural commodities, including beef, corn, pork, and wheat, are higher than the world price. ERS recently found that removing price wedges would lead to increased agricultural imports for the four commodities over the next five to ten years. For corn and wheat, removing price wedges was estimated to increase China’s imports by 91 and 249 percent, respectively. Both of these commodities are subject to a tariff-rate quota which could constrain additional imports. Overall, the benefits of removing these trade barriers would be widespread, increasing sales for producers in the United States and other exporting countries and yielding lower food prices for China’s consumers. *********************************************************************************** Ag Organizations Call for McKalip and Taylor Nominations Votes Agriculture groups through Farmers for Free Trade call on the Senate to confirm two key agricultural trade officials in the Biden administration. The coalition sent a letter to Senate leaders Tuesday calling for the confirmation of Doug McKalip as Chief Agricultural Negotiator for the U.S. Trade Representative's Office, and Alexis Taylor as USDA Undersecretary of Agriculture for Trade. The coalition urged the Senate to confirm the duo during the current lame-duck session. "Time is of the essence to confirm these nominees." the letter points out, adding, "American agriculture needs experienced leaders representing us in international negotiations." The letter also highlights the important role that exports and U.S. agriculture play on the entire economy, as 20 percent of American farm revenue comes from exports, and America's farmers, ranchers, food processors, and manufacturers rely on complex and highly integrated supply chains that stretch across international borders. The food and agriculture products we export support over 1,000,000 U.S. jobs. *********************************************************************************** Food System Investment Needed to Equip Farmers for Climate Change A new report from the Farm Journal Foundation finds that increased U.S. investments in agricultural development and innovation are needed to make global food systems more resilient. While climate change impacts agriculture worldwide, its effects are "substantially more severe" in warm regions, including Africa, Latin America, and the Caribbean. The report says that as much as 80 percent of the world's poor people, who predominantly work in agriculture, live in areas increasingly affected by climate change. The new report follows the United Nations' COP27 conference earlier this month, where leaders discussed the impact of climate change on the global food system and solutions to make agriculture more resilient. The report says investing in agricultural sustainability in developing countries is in the U.S. national interest, as it would prevent future food crises, reduce the need for emergency food aid, support stability in developing countries, and potentially reduce mass migration and civil unrest. *********************************************************************************** Noble Research Institute Releases Ranch Safety Guide Agriculture is the seventh-most-hazardous industry in the United States, but ranch operators can take steps to make their working facilities and equipment safer for their staff and families. Recently Noble Research Institute and the U.S. Roundtable for Sustainable Beef created and published a new guide to help improve ranch safety. The guide titled Ranch Employee Safety: Working Cattle and Related Facilities and Equipment, takes ranchers through four stages of improved safety. The guide proposes stages of safety on the ranch, including identifying hazards and preventing worker injuries and illnesses. The third stage is preparation of ranch employees, followed by the final stage, monitoring the hazards and risks and the safety policies and procedures implemented. Additionally, the guide provides 30 pages of resources and tools ready to use on any operation. Ranch Employee Safety: Working Cattle and Related Facilities and Equipment is available for download at no cost www.noble.org.
| Rural Advocate News | Wednesday November 30, 2022 |
Wednesday Watch List Markets Wednesday the ADP Employment report along with Real GDP numbers will be issued by the government. We will also be watching for any news of China regarding COVID, any new export sales and news on the potential railroad strike. Weather A cold front continues to sweep through the eastern portions of the country on Wednesday with bands of moderate rainfall. Some storms across the far southeast could be stronger today as well. Breezy winds are following behind the system and could make for some blowing snow in the areas that received it Tuesday. Also behind the front are a burst of some colder temperatures. They will not last long however, as warmth returns Thursday and Friday.
| Rural Advocate News | Tuesday November 29, 2022 |
Farm Share of U.S. Food Dollar Reached Historic Low in 2021 U.S. farm establishments received 14.5 cents per dollar spent on domestically produced food in 2021—a decrease of 1.0 cent from a revised 15.5 cents in 2020. The figure is the lowest recorded farm share value in nearly three decades, according to USDA’s Economic Research Service. The remaining portion of the food dollar—known as the marketing share—covers the costs of getting domestically produced food from farms to points of purchase, including costs related to packaging, transporting, processing, and selling to consumers. One contributor to the 2021 decline in farm share was a shift to food-away-from-home spending. Farm establishments typically receive a smaller share of food-away-from-home spending because of the large amount of value added by outlets such as restaurants. As a result, the farm share generally decreases when food-away-from-home spending increases faster year-over-year than food-at-home spending. Food-away-from-home spending increased markedly in 2021 after a sharp decrease early in the COVID-19 pandemic. *********************************************************************************** USDA Kicks off Spain Trade Mission Delegation The Department of Agriculture’s Foreign Agricultural Service Associate Administrator Clay Hamilton arrived Monday in Madrid to launch a USDA agribusiness trade mission to Spain. More than 70 participants, representing various sectors of U.S. food and agriculture, including businesses, trade associations, and state government, join this trade mission to explore export opportunities for U.S. agricultural products to Spain. Hamilton says, “Spanish consumers and food processors are increasingly interested in sustainably produced goods, which gives U.S. producers a marketing edge over other export suppliers.” Hamilton notes that USDA sees the demand for consumer-ready products steadily increasing, presenting an opportunity for U.S. exports. Trade mission participants will have an opportunity to connect with potential customers and learn the mechanics of exporting to Spain. In addition, importers from the neighboring Portugal have also been invited to participate, allowing the U.S. exporters to learn about opportunities in that country as well. *********************************************************************************** USDA Breaks Ground on New Soil Research Buildings in Auburn, Alabama The Department of Agriculture's Agricultural Research Service broke ground Monday on a new research facility housing the National Soil Dynamics Laboratory. The facility at Auburn University's College of Agriculture will include two new buildings at Auburn University's Research Park. Dr. Simon Liu, ARS acting administrator, says, "With these new buildings and the continuing cooperation with our research partners at Auburn University, we believe that the National Soil Dynamics Laboratory will continue to have a substantial positive impact on agriculture all over the world." The National Soil Dynamics Laboratory and Auburn University scientists are considered national leaders in developing economical and environmentally sound crop management systems for production agriculture in the Southeast. The partners are leading the way in the new national focus on soil and water quality to maintain the productivity of our nation's farms, according to Dr. Allen Torbert, supervisory research soil scientist and research leader for the National Soil Dynamics Laboratory. *********************************************************************************** New Board Members Announced for FFA Foundation Sponsors’ Board The National FFA Foundation announced its new chair for the Sponsors’ Board during the 95th National FFA Convention & Expo in Indianapolis this fall. David Hollinrake, global head of strategy and portfolio management for Syngenta, was named chair for the upcoming year. Hollinrake grew up on a farm in Illinois and has been involved with agriculture his entire life. Mary Snapp, vice president of strategic initiatives for Microsoft, was named chair-elect. Hollinrake says, "I am honored to play a role in helping create the next generation of leaders. The National FFA Sponsors' Board comprises top corporate executives who wish to support agricultural education and the National FFA Organization. During their service, sponsors' board members are integral to advising National FFA on opportunities to improve programs and secure funding for the continued development of the next generation of leaders who will change the world. Seven other new board members were announced. The members will serve on the board for three years. *********************************************************************************** Case IH, Farm Journal to Host Christmas Comeback in Kentucky Case IH and Farm Journal will celebrate a "Christmas Comeback" for residents of Mayfield, Kentucky. The event comes as the one-year anniversary of a tornado that damaged the town and rural areas on December 10, 2021. Case IH and Farm Journal want the people of Mayfield to know that they haven't been forgotten. Residents and others impacted by the storm are invited to a "Christmas Comeback" celebration with friends, family and the ag community. The community will enjoy singing Christmas carols with American Idol finalist Alex Miller and other holiday activities. Traci Rodemeyer of Case IH says, "With great partners, generous volunteers and lots of teamwork, our goal is to bring light and smiles this holiday season." The "Christmas Comeback" is a holiday celebration, but also a celebration of the resilience and commitment of the people of Mayfield who continue to rebuild their community. The event is set for Friday, December 2, 2022, at H&R AgriPower in Mayfield from 5:00-7:30 p.m. *********************************************************************************** Gas and Diesel Prices Fall Over Thanksgiving For the third straight week, the nation’s average gas price declined, falling 12.4 cents from a week ago to $3.52 per gallon. The national average is down 22.7 cents from a month ago and 14.1 cents per gallon higher than a year ago. The national average price of diesel fell 7.9 cents in the last week and stands at $5.20 per gallon. GasBuddy’s Patrick De Haan says, “All the metrics look very positive for motorists as this week is likely to continue seeing falling gasoline prices, with many areas falling to the lowest level since Russia’s invasion of Ukraine in February.” The national average could fall under $3 per gallon by Christmas, according to De Haan. The bears have run rampant through oil markets, with prices continuing to come under heavy selling pressure as China sees protests for its zero-Covid policies, shutdowns of major cities, and U.S. demand facing seasonal pressure. U.S. retail gasoline demand fell last five percent as motorists pre-filled up and celebrated Thanksgiving.
| Rural Advocate News | Tuesday November 29, 2022 |
Tuesday Watch List Markets An index of U.S. consumer confidence for November is the only significant report on Tuesday's docket, due out at 9 a.m. CDT. Traders will continue to monitor the latest weather forecasts, check for a possible export sales announcement at 8 a.m. and watch for any other market-impacting news, including rumors about Sunday's OPEC meeting. December grain futures reach first notice day on Wednesday. Weather A cold front moving across the middle of the country early Tuesday is forming a low-pressure center along it, increasing the intensity of the system as it moves east throughout the day. Snow is forming behind the front and could be moderate to locally heavy from Nebraska up into Wisconsin. Severe storms will occur across the Delta and Southeast later today, with potential for long-duration tornadoes, widespread damaging winds, and large hail. A burst of colder air is flowing in behind the front as well.
| Rural Advocate News | Monday November 28, 2022 |
Monday Watch List Markets Back from the weekend, traders will look over the latest weather forecasts and news from Ukraine. Monday morning's weekly report of export inspections is expected to show another week of active soybean movement at 10 a.m. CDT, followed by the final Crop Progress report of the year at 3 p.m. Weather A briefly quiet weather day is expected Monday. A cold front is moving through the Northern Plains, but precipitation with the front is mostly located in the Canadian Prairies. The front will get more active tonight as snow develops in a band across southeast Wyoming, northeast Colorado, and Nebraska where moderate accumulations are expected. The rest of the country is rather dry and mild.
| Rural Advocate News | Friday November 25, 2022 |
Farmer Share of Thanksgiving Food Dollar Stays Low in 2022 National Farmers Union President Rob Larew says the farmers’ share of the Thanksgiving food dollar continues to stay low. “Corporate profits and consumer food costs continue to go up and up, but the farmers’ share of the food dollar is still low,” Larew says. “Thanksgiving is a time of family and community, but thanks to price gouging by corporate monopolies in the food system, the holiday meal is getting increasingly difficult to afford.” The NFU says the retail price of turkey averages $1.99 a pound, and the farmers’ share is six cents per pound. Two pounds of boneless ham retails for $12.98, with the farmers’ share at one dollar. Even though consumers are paying more for food this year, almost none of that increase is getting passed on to America’s family farmers and ranchers. Mega-consolidation in the food sector has made supply chains uncompetitive and resulted in farmers being underpaid. *********************************************************************************** Groups Express Support for Year-Round E15 A broad coalition of energy and agriculture organizations wrote a letter to Congress asking them to adopt legislation that would resolve inconsistent fuel volatility regulations. Specifically, the groups expressed support for legislation that would result in equal regulatory treatment for all gasoline blends containing ten percent ethanol or more, including gasoline with a 15 percent blend of ethanol. Such legislation would permanently remove the regulatory barrier that has historically made it extremely difficult for retailers to offer E15 in the summer. “Our groups have come together for the first time in history to support legislation that will permanently resolve the issue,” the letter says. “By ensuring uniformity across the nation’s fuel supply chain, that will provide more flexibility and result in more consistent outcomes than a state-by-state regulatory landscape.” Without the fix, the groups see gasoline marketplace uncertainty and political disputes over E15 that will continue to resurface every summer. *********************************************************************************** Farm Loan Interest Rates Rise Sharply Farm loan interest rates increased sharply during the third quarter. The Federal Reserve Bank of Kansas City says despite the high borrowing costs, farm real estate values continued higher. However, the rate of increase slowed in the quarter. Following consistently higher increases earlier in 2022, the value of farmland in most Districts grew at a slightly slower pace during the third quarter. Farm income and credit conditions also remained strong, but the improvement was more limited. With higher production expenses, broad inflation, and higher financing cost, growth in household spending by farm borrowers began to outpace capital spending more noticeably. Strong farm finances continued to support a generally positive outlook for agricultural credit conditions through the rest of this year. However, some pressures have continued to intensify. Despite more measured improvements in recent quarters, farm finances remained solid following especially-strong incomes across the sector during the past two years. *********************************************************************************** Japanese Government Approves Amended Beef Safeguard Mechanism The Upper House of Japan’s government, called the Diet, approved the Protocol Amending the U.S.-Japan Trade Agreement regarding the beef safeguard mechanism. The U.S. Trade Representative’s Office says that completes the Diet’s process of finalizing the agreement. The new three-trigger safeguard mechanism will allow U.S. exporters to meet Japan’s growing demand for high-quality beef and reduce the probability that Japan will impose higher tariffs in the future. “The protocol will ensure our farmers and ranchers continue to have access to one of the world’s most dynamic markets,” says USTR Katherine Tai. “We are excited that Japanese consumers can enjoy high-quality U.S. beef that’s a staple of our agricultural industry.” In 2021, the U.S. was the top beef exporting country in the world, with global sales of beef products valued at more than $10 billion. U.S. beef exports to Japan totaled almost $2.4 billion in 2021, making Japan the second-largest export market. *********************************************************************************** USDA Wants Nomination for the Advisory Committee on Ag Statistics The USDA’s National Agricultural Statistics Service is seeking nominations for the Advisory Committee on Agricultural Statistics. Members of this committee advise the Ag Secretary on the scope, timing, and content of periodic agricultural censuses, surveys of agriculture, and other related industries. The committee also makes recommendations on the content of agriculture reports and represents the views and data needs of suppliers and users of ag statistics. “The Advisory Committee has long played an important role within our agency,” says NASS Administrator Hubert Hamer. “The valuable insights and recommendations from the committee have helped shape NASS programs and ensure we continue to meet the needs of data and statistics.” The committee, appointed by the Ag Secretary, consists of 22 members representing multiple disciplines and interests, including ag producers, national farm organizations, ag economists, and many others. Nominations are due by December 7, and for more details, go to the NASS Advisory Committee website. *********************************************************************************** First Census of Agriculture to Collect Information on Hemp Farming For the first time, the USDA will collect data on farmers growing hemp and using precision technology in the 2022 Census of Agriculture. The agency began regulating hemp production in 2021, and this will be the first census to publish data on those producers, who grow the crop for fabric, food products, and CBD. The agency says it will also identify farmers who use “precision agriculture” data-collection technology that guides planting decisions. About 70 percent of the nation’s 2.2 million farms responded to the 2017 census. Response rates in recent years have trended downward. Farmers are required by law to fill out the survey, but NASS has no enforcement mechanism. Donald Buysse, (BYSE-see) chief of the census planning branch with NASS, says, “The incentive is the idea you’re providing data as a useful tool for your community.” USDA will collect responses until February 6 and publish the data in February 2024.
| Rural Advocate News | Friday November 25, 2022 |
Friday Watch List Markets Trading in U.S. grain and livestock futures resumes at 8:30 a.m. CDT Friday, the day after Thanksgiving. The session will close early at 12:05 p.m. for most contracts and at 12:15 p.m. for Minneapolis wheat. After USDA's weekly export sales report at 7:30 a.m. CDT, no other significant reports are on the docket, but traders will keep an eye on the latest weather forecasts and outside news, especially from Ukraine. Weather An upper-level system that has become cutoff over Texas will produce widespread and building showers and thunderstorms on Friday while showers move out of eastern areas. Some heavier snow will be possible in eastern New Mexico and west Texas as well. The rest of the country will be seasonally mild.
| Rural Advocate News | Wednesday November 23, 2022 |
USDA Invites Producers to Respond Online to the 2022 Census of Agriculture The USDA mailed survey codes to all known U.S. ag producers with the invitation to respond online to the 2022 Census of Agriculture at agcounts.usda.gov. The ag census is the nation’s only comprehensive and impartial agriculture data for every state, county, and territory. By completing the survey, producers across the nation can tell their stories and help generate impactful policies to better serve them and future ag producers. Farmers of all sizes, urban and rural, that produced and sold $1,000 or more of products, or normally would have in 2022, are included in the Census. The Census will get mailed in phases, with paper questionnaires following in December. Producers only have to respond once, either online or by mail. Responses are due on February 6, 2023. “The Census of Agriculture is a powerful voice for American agriculture,” says USDA Secretary Tom Vilsack. “The information is an important influence on future ag policy.” *********************************************************************************** Comment Period Extended on Packers and Stockyards Act Rulemaking The USDA says it’s extending the comment period on the proposed rule titled “Inclusive Competition and Market Integrity Under the Packers and Stockyards Act” by 45 days. The National Cattlemen’s Beef Association welcomed the extension while urging USDA to proceed in a deliberate manner. “While we appreciate the additional time to submit thorough comments, overall, USDA should slow down on this rulemaking effort,” says NCBA senior director of government affairs Tanner Beymer. “It’s a significant undertaking rooted in decades of history, and stockholders must get the chance to thoroughly evaluate the effects of this rule and those the Department says are coming soon.” NCBA and other industry partners requested an extension of the comment period last month in a letter to USDA. The proposed Packers and Stockyards Act rule spans 180 pages, poses 44 specific questions, and covers 14 years of regulatory history, so the initial 60-day period was too short. *********************************************************************************** Railroad Conductors Union Rejects Settlement Proposal The union representing railroad conductors rejected a White House-brokered deal and a strike could start as soon as December 9. The latest rejection comes from the union representing 28,000 conductors, brakemen, and yardmen. NPR says the total number of unions rejecting the agreement is four with a combined membership of close to 60,000 workers. Eight other unions ratified the deal but could get pulled back into the dispute. NPR says that’s because if one union decides to strike, all of the unions will honor the picket lines. The National Grain and Feed Association, the Soy Transportation Coalition, the National Milk Producers Federation, and many other agricultural groups are asking Congress to step in and prevent a shutdown, which would be catastrophic for the U.S. economy. The USDA says railroads carry 29 percent of the nation’s soybeans, 33 percent of the corn, and 60 percent of U.S. wheat to export terminals. *********************************************************************************** Sustainable Agriculture Coalition Releases Farm Bill Priorities The National Sustainable Agriculture Coalition’s 2023 Farm Bill campaign will advance programs and priorities that build resilience and equity across the American agricultural sector. Other platform goals include restoring competition, investing in science, and renewing the environment for current and future generations of Americans. One of the group’s biggest goals is strengthening resilient local and regional food systems. “A lack of technical assistance continues to make it difficult for many farmers and producers to update their businesses to take advantage of market opportunities,” the group says. “Federal farm and food programs must support all producers who want to take advantage of the opportunities.” The coalition also wants to fix a “flawed farm safety net and restore fair competition to the ag sector.” The group says, “Right now, the farm safety net serves as an open-ended entitlement subsidy that encourages high land prices, soil-depleting farming practices and systems, farm consolidation, and declining opportunities.” *********************************************************************************** NSP Applauds Expanded RMA Coverage for Grain Sorghum National Sorghum Producers applauds the USDA’s Risk Management Agency’s enhancing coverage for irrigated grain sorghum producers. The new coverage will be effective November 30 for the upcoming year. “This expanded coverage for irrigated sorghum producers is the culmination of ten years’ work between NSP, Congress, and RMA,” says NSP CEO Tim Lust. “We thank them for continuing to work with us to improve coverage options for sorghum producers.” He also says the improved rates and yields for sorghum producers will offer a greater level of aid and new opportunities for the 2023 growing season. RMA developed improved crop insurance options for irrigated grain sorghum producers in select counties in Colorado, Kansas, Oklahoma, and Texas. “The existing rates for irrigated corn will be used for irrigated grain sorghum and 80 percent of the irrigated corn yield will be used to determine the guarantee,” says RMA, “with no change to the grain sorghum price.” *********************************************************************************** USDA’s Trade Mission to Spain Seeks to Boost Opportunities More than 30 agribusinesses and farm organizations will visit Madrid, Spain, from November 29 through December 2 during an upcoming USDA trade mission. Delegation members will engage directly with potential buyers from Spain and Portugal and receive in-depth market briefs from USDA’s Foreign Agricultural Service and industry trade experts and participate in site visits. Spain is the third-largest EU destination for U.S. agricultural products and Portugal is number 11. “One of the key goals of this USDA trade mission is to highlight both our commonalities and what truly sets U.S. foods and ingredients apart from our competitors in the region,” says FAS Associate Administrator Clay Hamilton. “America’s farmers, ranchers, and producers have a compelling story to tell about the quality and sustainability of their agricultural production, and we are confident that story will resonate with buyers, result in many sales, and provide a boost to the agriculture industry back home.”
| Rural Advocate News | Wednesday November 23, 2022 |
Wednesday Watch List Markets The day before Thanksgiving has many reports, including U.S. jobless claims, October durable goods orders and an update of the U.S. Drought Monitor at 7:30 a.m. CDT, the University of Michigan's consumer sentiment index and U.S. new home sales at 9 a.m., the U.S. Energy Department's weekly inventory report at 9:30 a.m. and minutes from the Federal Reserve's latest open market committee meeting at 1 p.m. U.S. grain and livestock futures close at their regular times Wednesday and open at 8:30 a.m. CDT on Friday for a short trading session. Weather A storm system moving through the Rockies on Wednesday will start to develop showers and thunderstorms out ahead of it Wednesday night across the southeastern Plains. Other areas of the country will be dry with mild temperatures for this time of year, a good day for holiday travel.
| Rural Advocate News | Tuesday November 22, 2022 |
Tuesday Watch List Markets There are no significant reports on Tuesday's docket and trading volume may be light this week of Thanksgiving -- sometimes encouraging mischievous behavior. As usual, traders will monitor weather forecasts and watch for a possible export sale announcement at 8 a.m. CDT. Weather A quiet weather day is expected for most areas of the country Tuesday. A system will be moving into the Pacific Northwest with scattered showers, however. This system will dive into the Southern Plains by Thursday where showers will be more likely to develop for Thanksgiving. Temperatures are moderating for most areas, with more normal-like readings for this time of year.
| Rural Advocate News | Monday November 21, 2022 |
Electric Vehicles Won’t Have AM Radios People shopping for electric vehicles will see that most don’t have AM radio, and it’s a move not sitting well with rural farm broadcasters. Nathan Simington is a Commissioner of the Federal Communications Commission who spoke to broadcasters at the National Association of Farm Broadcasting’s annual convention. He brought a unique perspective to the topic after growing up on a farm in Canada. “AM radio is an indispensable source of information for more than three million farmers in the U.S.,” Simington says. “To those who say AM is a dead technology, 75 percent of farmers listen to the radio five days per week.” For those who don’t know, AM radio is also the “essential spine” of the Emergency Alert System. “More importantly, farm broadcasters, especially those on AM, are a trusted source of information,” Simington adds. “Forget about oil and gas. These days, trust is the most important commodity out there.” *********************************************************************************** Milk Producers Ask for Support of Domestic Formula Production The National Milk Producers Federation sent a letter to lawmakers asking for support of domestic infant formula production as the shortfalls that emptied store shelves of formula have eased. Given the improving situation, tariff waivers that could discourage the production of a safe, secure domestic infant formula supply should be allowed to expire at the end of this year as scheduled. The milk producers sent their letter to the chairmen and ranking members of the Senate Finance Committee and the House Ways and Means Committee. “Given the temporary shortfall that gripped American families in need of formula earlier this year has abated, we urge Congress to ensure that the unique, unilateral tariff benefits granted to our trading partners under the Formula Act and the Bulk Infant Formula to Retail Shelves Act end as scheduled at the close of the year,” the letter says. “We request opposition to efforts to extend the benefits.” *********************************************************************************** NCBA, PLC Oppose ESA Listing of Lesser Prairie Chicken The National Cattlemen’s Beef Association and the Public Lands Council announced their opposition to listing the Lesser Prairie Chicken under the Endangered Species Act after the U.S. Fish and Wildlife Service released a final rule. “Over and over, the science has proven that healthy, diverse rangelands, the exact kind of landscape maintained by livestock grazing, are where the lesser prairie chicken thrives,” says PLC Executive Director Kaitlynn Glover. “Cattle ranchers’ efforts to conserve these acres are absolutely critical to the survival of the species.” She also says they’re deeply disappointed by the Fish and Wildlife decision to impose redundant and punitive restrictions on the very same people they have to thank for the lesser prairie chicken’s continued existence on the range. The Service is also establishing a rule allowing them to appoint third parties, including environmental activist groups, as the grazing authorities in the range of the lesser prairie chicken. *********************************************************************************** Beef Advocacy Program Wants New Applicants The Beef Checkoff-funded Trailblazers program is asking for applications for its next class of beef advocates. Trailblazers, developed by the National Cattlemen’s Beef Association, takes advocacy to the next level by giving participants the tools and training they need to promote beef to new audiences while correcting misconceptions. “Trailblazers develops the next generation of beef advocates through a highly-engaging and interactive program,” says Chandler Mulvaney, director of grassroots advocacy and spokesperson development for NCBA. The program is looking for new spokespeople to participate in a year-long, hands-on program to train, equip, and empower beef advocates. Selected candidates learn to become expert communicators, excel in media interviews, and understand how to build confidence in beef-related practices when talking to consumers. Applications are due by December 30, and selected participants will get notified in mid-January. Applicants must be 21 and provide two references with their application. For information, go to NCBA.org. *********************************************************************************** Testimony on SEC’s Proposed Climate Rule Montana Senator Jon Tester pushed the leader of the Securities and Exchange Commission to avoid taking action on its proposed Climate Rule that could potentially hurt American farmers. He’s concerned that action would lead to burdensome reporting requirements for family farmers and ranchers who are part of the supply chain for a publicly-traded company as part of the agency’s proposed climate disclosure rule. “I appreciate our discussion and your response that the SEC doesn’t intend for public companies to have an obligation to ask producers for information to estimate these emissions,” he says. “However, the agency must not take any action that may lead, intentionally or not, to burdensome reporting requirements for production agriculture.” Montana producers applauded the senator’s continued action. “We support the senator’s efforts to help the SEC understand our concerns with what could potentially be a far overreaching rule,” says Cyndi Johnson, president of the Montana Farm Bureau. *********************************************************************************** Proposed WIC Change Would Decrease Access to Dairy Products The National Milk Producers Federation and the International Dairy Foods Association say the USDA’s proposed changes to the Women, Infants, and Children’s Nutrition Program will limit dairy access. “Unfortunately, the changes would decrease access to dairy products and the unique nutrient profile they provide, especially considering the current Dietary Guidelines say almost 90 percent of the U.S. population doesn’t consume enough dairy to meet recommendations,” the groups say in a statement. “Nutrition science clearly shows that nutritious dairy products like milk, yogurt, cheese, and cottage cheese are especially important in the diets of women, infants, and children.” They also say dairy is a source of 13 nutrients, including three of the four that are a public health concern as noted by the dietary guidelines. The groups look forward to working with USDA to modernize the WIC food package for eligible families to increase access to nutrient-dense milk, yogurt, and cheese.
| Rural Advocate News | Monday November 21, 2022 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and survey the news, especially any updates from the war in Ukraine. USDA's weekly export inspections is set for 10 a.m. CDT, followed by Crop Progress at 3 p.m. This will be an abbreviated week of trading with Thanksgiving on Thursday, followed by a shorter session Friday. Weather After a brutally cold week for most of the country, temperatures early this week are moderating and becoming more seasonable for most areas. Some light precipitation may be found near the Gulf Coast but most areas are going to stay dry early this week.
| Rural Advocate News | Friday November 18, 2022 |
Rural Mainstreet Economy Shrinks for Six Straight Months The Creighton University Rural Mainstreet Index fell below growth-neutral for the sixth-consecutive month. On a scale of one to 100, 50 represents growth neutral. The Economic Confidence Index plummeted to its lowest level since 2020. Almost 31 percent of bank CEOs in the survey area recommend that the Fed cease raising interest rates. Despite the weaker rural outlook, only 14 percent of the CEOs say their bank had increased financial commitments on farm loans. Farmland demand remains strong as the Farmland Price index climbed above 50 for the 26th month in a row. Almost 61 percent of bank CEOs expect these high farmland prices to plateau, while 22 percent say those land prices will likely decline during the period. “The rural Mainstreet economy is now experiencing a downturn in economic activity,” says Dr. Ernie Goss. “Last month, almost one in four bankers said the economy was already in a recession.” *********************************************************************************** Increased Ethanol Blend Rates Lower Fuel Costs for Drivers A new Energy Information Administration report clearly shows higher ethanol blends helped moderate fuel prices after the Ukraine invasion. The report also says the ethanol blend rates hit a record summer average of 10.5 percent. “Fuel ethanol’s price discount to gasoline was one factor that led to the higher summer blend rate in 2022,” the report says. “Although ethanol prices were higher in 2022, they were still low relative to gas prices that were at the highest level since 2014. “The new analysis shows that American drivers gravitated toward lower-cost E15 and E85 this summer as war in Ukraine drove fuel prices to record highs,” says Renewable Fuels Association President and CEO Geoff Cooper. “The report also shows that President Biden made the right call by issuing emergency waivers to allow the continued sales of E15 through the summer.” RFA also says the report shows the importance of year-round access to E15. *********************************************************************************** Black Sea Grain Export Deal Extended, Russia Wants More The Black Sea Grain Export Deal, due to expire on Saturday, has been extended for another 120 days. Reuters says Moscow wants its own demands in the deal to get more fully addressed. The agreement protects a sea transit corridor and was intended to help alleviate a global food shortage. Ukraine, a major producer of grains and oilseeds, has three ports in Ukraine currently shipping grain. UN’s Secretary General says they welcome the agreement by all parties to continue the Black Sea grain initiative to facilitate the safe navigation of grain exports, foodstuffs, and fertilizers from Ukraine. Russian exports of ammonia via a pipeline to the Black Sea haven’t been agreed to as part of the renewal. However, Russia is continuing its efforts to resume those exports unimpeded by Western sanctions. The 120-day extension wasn’t the one-year deal the United Nations and Ukraine wanted. Russia says the duration seems “justified.” *********************************************************************************** USDA Proposes Science-Driven Updates to WIC USDA’s Food and Nutrition Service announced proposed changes to the foods prescribed to participants in the Special Supplemental Nutrition Program for Women, Infants, and Children, known as WIC (wick). These science-based revisions incorporate recommendations from the National Academies of Science, Engineering, and Medicine and the Dietary Guidelines for Americans. “USDA is committed to advancing maternal and child health through WIC, helping mothers, babies, and young kids thrive,” says Ag Secretary Tom Vilsack. “These proposed changes will strengthen WIC, which is already an incredible program, by ensuring it provides foods that reflect the latest nutrition science to support healthy eating and bright futures.” The changes will increase the current level of assistance while providing WIC state agencies with more flexibility to tailor or accommodate personal and cultural food preferences and special dietary needs and increase variety and choice for WIC participants, making the program more appealing for current and potential participants. *********************************************************************************** Sheep Industry Building a Sustainability Task Force The American Lamb Board is working with the American sheep industry to create a new task force of industry stakeholders and research and extension specialists to develop a sheep sustainability report. The report will represent the sheep industry’s commitment to sustainability and the industry’s existing practices and goals for continuous improvement in animal care, environmental stewardship, social impacts, and industry productivity. The task force was developed, in part, because of a Michigan State University environmental footprint study. MSU gathered production data and calculated GHG emissions of five different sheep production systems: intensive production, intensive grazing, extensive grazing, range, and feedlots. The study identified the major production factors contributing to GHG emissions in U.S. sheep production, which will help develop mitigation strategies and best practices for each production system to reduce emissions. ALB says its environmental story was added to marketing programs in the past several months, and they’re gearing up for more. *********************************************************************************** Ethanol Production Hits Lowest Level in a Month The Energy Information Administration says ethanol output dropped to its lowest level in more than a month, and inventories dropped during the week ending on November 11. The newest EIA report says the production fell to an average of 1.011 million barrels a day. That’s down from 1.051 million barrels during the prior week and the lowest level since October. In the Midwest, the largest-producing region in the U.S., production dropped to 954,000 barrels a day from 992,000 barrels the week before. That’s also the lowest level for the Midwest in over a month. Gulf Coast production declined to an average of 23,000 barrels a day, a 1,000-barrel-a-day drop from the prior week. Rocky Mountain output fell to 13,000 barrels a day, the lowest output since September 23. The East Coast saw the only production increase at 13,000 barrels a day. Inventories through November 11 fell to 21.298 million barrels.
| Rural Advocate News | Friday November 18, 2022 |
Friday Watch List Markets Friday features two economic reports -- existing home sales and leading economic indicators. We will also be watching for any new grain or soybean sales, South American weather, and any news out of Ukraine. Weather A reinforcing shot of cold air continues to flow into the U.S. on Friday. It is causing some light snow in places, but with little accumulation outside of the Great Lakes, where lake-effect snows are intense. Sub-freezing temperatures have made it to almost all areas of the country outside of some spots in the Southwest, southern Texas, and the Florida Peninsula with sub-zero readings in the Northern Plains.
| Rural Advocate News | Thursday November 17, 2022 |
Thursday Watch List Markets USDA's weekly export sales report will be out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, October housing starts and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Traders continue to wait for Russia's decision on the Ukraine grain deal and keep watch over the latest forecasts. Weather Another push of cold air across the northern half of the country is bringing the potential for widespread light snows on Thursday. Breezy winds are coming as well, with gusts up to 45 mph in the Northern Plains that could lead to reduced visibility and blowing snow. Lake-effect snows on the eastern side of the Great Lakes continue to be heavier.
| Rural Advocate News | Thursday November 17, 2022 |
Farm Bureau Survey Shows Thanksgiving Dinner Cost up 20 Percent Thanksgiving is an important holiday for spending time with family and friends. Farm Bureau’s 37th annual Thanksgiving Dinner survey provides a look at the cost of this year’s classic feast for 10. This year’s price tag is $64.05, up more than ten dollars from last year’s average of $53.31. It still works out to under $6.50 per person. The centerpiece is the turkey, which costs more than last year at $28.96 for a 16-pound bird. It’s 21 percent higher than last year. Other ingredients in the meal include stuffing mix, dinner rolls, milk, sweet potatoes, a veggie tray, pie crusts, and several others. The only traditional ingredient that’s cheaper than last year is a bag of fresh cranberries at $2.57, 14 percent cheaper than last year. American Farm Bureau Chief Economist Roger Cryan said factors driving the prices higher include general inflation, supply chain challenges, and the war in Ukraine. *********************************************************************************** USDA Announces Additional Emergency Relief for Producers Ag Secretary Tom Vilsack says his agency is planning for additional emergency relief and pandemic assistance. USDA will soon roll out phase two of the Emergency Relief Program as well as the new Pandemic Assistance Revenue Program. Those programs will help offset crop and revenue losses for producers. USDA is announcing the forthcoming assistance early enough to give producers time to gather documents and train the agency’s staff. “We have diligently worked to help agricultural producers bounce back from devastating natural disasters and COVID-19 through a number of programs,” Vilsack says. “These new programs are focused on filling gaps in assistance where some producers have fallen through the cracks.” ERP phase two will assist eligible producers who suffered crop losses due to wildfires, hurricanes, flood, derechos, and others. PARP will help eligible commodity producer who lost revenue in 2020 compared to previous years due to COVID-19. For more info, go to usda.gov. *********************************************************************************** Food Prices Likely to Drop Next Year Cargill’s CEO says he expects food prices to decline in 2023. Yahoo says that’s despite tight global crop stockpiles, especially in oilseeds. David MacLennan, Cargill CEO, says the solution to the food versus fuel debate is to boost global crop commodity production. “We don’t think it’s going to be an either-or dynamic,” he says. “It can be food and fuel.” MacLennan also says regenerative agricultural practices, greater yields, and more use of technology can increase output so it can meet the demand from both food and fuel sectors. World food prices hit a record in March after Russia invaded Ukraine and prevented exports from one of the world’s top grain producers. Prices did drop after the United Nations helped reach a grain deal that allowed ships filled with Ukrainian grain to pass unimpeded through the Black Sea. “Food shouldn’t be a weapon,” MacLellan adds. “The world depends on an interconnected food system.” *********************************************************************************** NMPF Wants Expedited Approval of Climate-Friendly Additives The National Milk Producers Federation wants the U.S. Food and Drug Administration to speed up the approval of climate-smart feed additives. The group wants the FDA to modernize its regulations allowing for faster approval of animal feed additives that reduce greenhouse gas emissions. The milk producers submitted comments to the agency highlighting the need for urgent action to enhance dairy’s role as a climate solution. “Innovative and voluntary solutions are needed to reduce greenhouse gas emissions, including methane,” says Dr. Jamie Jonker, NMPF Chief Science Officer. “Feed composition changes can directly or indirectly reduce enteric emissions resulting from livestock.” While animal feed additives help on the path to net-zero emissions, the pace of their approval lags behind competitors like the European Union due to current FDA processes. “One of the greatest opportunities that exists for dairy farmers is their ability to provide real solutions to many challenges like GHG emissions,” Jonker says. *********************************************************************************** Grab That Turkey for Thanksgiving As Americans prepare for Thanksgiving, it’s probably not surprising that the number of available turkeys is lower than last year. Only 49.6 million pounds of turkeys remained in cold storage as of Monday, which a USDA report says is down 18 percent week-to-week. At the end of August, when supplies are usually at their peak, they totaled more than 114 million pounds. An updated USDA report says while turkey production was expected to drop by seven percent, the amount of meat in storage rose one percent from the same point last year. The last month new chicks can mature enough for Thanksgiving is August, and placements rose two percent higher than the five-year-average as producers attempted to make up for lost output because of avian influenza earlier this year. Since the end of August, inventories have steadily declined. Stocks in September dropped to just over 105 million pounds, nine percent above 2021. *********************************************************************************** Helping Veterans Find New Careers John Deere announced an agreement with the U.S. Army Reserve to help service members and their families access career opportunities while transferring to civilian life. The agreement allows Deere to provide active-duty soldiers transitioning to the Army Reserves with meaningful education and skills that will make them top candidates for future employment. Deere says it’s honored to give back to the nation’s veterans by helping them take the skills they learned and develop them in a new career path. The agreement builds upon the Defense Department’s Skill Bridge Program, which places active-duty military members in civilian jobs for the final six months of service. Reserve members typically face unemployment rates two or three times the national average. The internship allows vets to get on the ground training and industry education that can help make them better candidates for open jobs. Active-duty, National Guard, or Reserve vets and spouses can go to deere.com.
| Rural Advocate News | Wednesday November 16, 2022 |
USDA Provides Almost $24 Million for Beginning Farmers and Ranchers USDA Chief Scientist Chavonda Jacobs-Young says the agency will invest nearly $24 million across 45 organizations and institutions that teach and train beginning farmers and ranchers. “Investing in the professional development of our nation’s newest farmers and ranchers will help our food and agriculture sectors to flourish from the ground up,” she says. The investments will support a wide range of activities across a number of important topics for new farmers and ranchers, including managing capital, acquiring and managing land, and learning effective business and farming practices. The investment is part of the National Institute of Food and Agriculture’s Beginning Farmer and Rancher Development Program. “We recognize that beginning farmers and ranchers have unique needs for education, training, and technical assistance,” says NIFA Acting Director Dr. Dionne Toombs. “This investment will benefit a new generation of beginning farmers and ranchers across the spectrum of American agriculture. For more information, go to usda.gov. *********************************************************************************** Farm Groups Ask USTR for “Fresh Start” With WTO USA Rice released a letter to U.S. Trade Representative Katherine Tai from ag groups asking her for a “fresh start” at the World Trade Organization. “We believe negotiations are at a crossroads, and the current environment is conducive to a fresh start,” the groups say in a letter. “The groups are asking for a forum at the WTO that would facilitate discussion of the traditional core issues as well as emerging trade-related issues like trade liberalization and innovation-friendly regulatory approaches.” They also say if the current WTO structure doesn’t allow for “blank-slate” negotiations, the groups want her to develop alternatives to address these issues. “Finally, a critical element of agricultural trade liberalization will be an effective enforcement mechanism,” they say. “Indefinitely extending the block on appellate body appointments or agreeing to reforms that weaken dispute settlement will be detrimental to America’s agricultural producers and possible discussions surrounding agricultural trade issues.” *********************************************************************************** Farm Workers to Lobby for Immigration Bill Over 60 farm worker groups from across America are traveling to Washington this week to urge the Senate to pass the Farm Workforce Modernization Act. The United Farmworkers, the UFW Foundation, and other groups will make the trip to Washington, D.C. to lobby for the bill, which is a compromise between farm and labor leaders and supported by most farm groups. The Fence Post Dot Com says the House passed the bill, but Senate supporters haven’t convinced enough Republicans to support the bill to get the 60 votes needed to avoid a filibuster. Lobbyists for the bill worry that passing it in the next Congress would be close to impossible if Republicans wind up controlling the House. Farm workers from major agricultural states like Arizona, California, Washington, Georgia, and others will be lobbying elected officials. “Providing America’s agricultural workforce with legal status and stability is crucial,” says UFW President Teresa Romero. *********************************************************************************** Group Wants Seven Billion Gallon Biofuel Law Clean Fuels America Alliance wants the Environmental Protection Agency to increase the advanced biofuels’ share of the fuel market by one billion gallons a year to reflect the rising interest in renewable diesel production. The recommendations would raise the federal mandate for second-generation biofuels by over 7.6 billion gallons in 2024, which amounts to a 36 percent increase from this year. “We’re seeing the production of renewable diesel coming online,” says Donnell Rehagen, Clean Fuels America CEO. “We believe the EPA has to increase the biomass-based diesel volume by 500 million gallons and the advance biofuels by one billion gallons for each of the next two years.” In an agreement with the biofuel industry, the EPA has a deadline on November 30 to announce the Renewable Fuel Standard for 2023 and possibly for additional years. Plants with up to three billion gallons of capacity will come online in the next three years. *********************************************************************************** Russia Expected to Extend the Black Sea Grain Deal Russia will likely extend the United Nations-brokered deal allowing exports of grain and other farm products from Ukraine. Four people tell Bloomberg that the deal expires on November 19 and that Russia will likely allow the deal to renew. Just ahead of the expiration, United Nations’ leadership and Russian officials met on the sidelines of the G20 summit. Reuters says the two sides had a lengthy discussion and talked through all the aspects related to facilitating Russian exports of food and fertilizers, as well as the Black Sea Initiative. The accord helped stave off a global food crisis by allowing food and fertilizer exports from several of Ukraine’s Black Sea ports. Russia wants unhindered access to world markets for its own food and fertilizer exports in return for agreeing to continue the Black Sea export deal. Moscow says it could quit the deal if progress isn’t made on its concerns. *********************************************************************************** Another Record Land Sale in Iowa Iowa set another record for farmland sales. Seventy-three acres of high-quality farmland in Sioux County, Iowa, sold for $30,000 per acre at auction on November 11. That’s a total sale worth $2.195 million. That’s just part of a new $30,000-per-acre club in Iowa. A local farmer was the buyer, and the runner-up was also a farmer. A statement from Iowa Appraisal says the company can’t explain these recent price records. The price itself got negotiated in just minutes. “There’s no really good explanation for sudden jumps in these record prices,” the company says. The farm had 72.49 tillable acres with a balance in roads and ditches. Its corn acreage base is 28.19 acres with a yield of 172 bushels an acre, and a soybean base of 38.19 acres with a yield of 56 bushels an acre. A recent auction saw 116 acres of southeast Nebraska farmland sell for $27,400 per acre.
| Rural Advocate News | Wednesday November 16, 2022 |
Wednesday Watch List Markets A report on U.S. retail sales for October is due out at 7:30 a.m. CDT Wednesday, followed by the Fed's report on October industrial production at 8:15 a.m. The U.S. Energy Department's weekly inventory report is set for 9:30 a.m. and includes ethanol production. Traders will continue to closely watch news events from Ukraine, as well as the latest weather forecasts. Weather A system is moving through the Northeast with a batch of heavy snow. A trough over the middle of the country continues to produce light snow across the Midwest. And another push of cold air coming down from Canada is leading to light snows for the Northern Plains. Some of those snows could be heavier closer to the Rockies tonight and come with some breezy winds as well. Meanwhile, below normal temperatures have largely enveloped the entire U.S.
| Rural Advocate News | Tuesday November 15, 2022 |
Ag Groups Call for Congress to Reaffirm Federal Pesticide Preemption More than 300 agriculture, environment, academic, and infrastructure stakeholder groups are calling on Congress to reaffirm federal pesticide preemption on labeling and packaging. Failing to do so, the groups warn, could hold disastrous consequences for our food security, the environment, public health, vital infrastructure, and other uses where pesticides provide important societal benefits. The Federal Insecticide, Fungicide, and Rodenticide Act is clear that states “shall not impose or continue in effect any requirements for labeling or packaging in addition to or different from those required” by the federal government. However, in recent years, states have sought to impose health claim label requirements that directly contradict federal findings. In a letter to Congress, the groups call on Congress to reaffirm that states may not impose additional labeling or packaging requirements that conflict with federal findings. American Soybean Association President Brad Doyle says, “Farmers and other pesticide users need predictable access to these tools to protect their crops and maintain important conservation practices. *********************************************************************************** Senate Ag Leaders Call for Greater Cryptocurrency Regulation Leadership of the Senate Agriculture Committee last week called for more federal oversight of cryptocurrency exchanges. The comments come as cryptocurrency exchange FTX collapsed last week, and a collapse of cryptocurrency prices. The Senate Agriculture Committee has jurisdiction over the Commodity Futures Trading Commission. Chair Debbie Stabenow, a Michigan Democrat, says, “Consumers continue to be harmed by the lack of transparency and accountability in this market. Ranking Republican from Arkansas, John Boozman, says, “The events that have transpired reinforce the clear need for greater federal oversight of the digital asset industry.” Boozman adds, “While our legislative work continues, the Commodity Futures Trading Commission already has the ability to regulate and prosecute fraud, manipulation and abuse. I strongly encourage them to actively exercise those authorities when necessary.” The Digital Commodities Consumer Protection Act of 2022, sponsored by Stabenow, would amend the Commodity Exchange Act to provide the Commodity Futures Trading Commission jurisdiction to oversee the spot digital commodity market *********************************************************************************** NCGA Launches Search for Next CEO The National Corn Growers Association Board of Directors has hired Hedlin Ag Enterprises of Ankeny, Iowa, to assist with the search for a new CEO. Current NCGA CEO Jon Doggett has worked for NCGA for more than 20 years as our Vice President of Public Policy, Executive Vice President and, since 2018, as CEO. Doggett made his intentions known to the board earlier this year, and his last day with the organization will be December 31, 2022." NCGA President Tom Haag says, “We have been very thoughtful and put a lot of time and effort into this process.” The initial part of the search involves identifying and vetting potential candidates for the position, which will occur through the end of this year and into the beginning of 2023. Candidate interviews for the CEO position will be held in February with the intention of introducing the new CEO during Commodity Classic in March. *********************************************************************************** Iowa Department of Ag Cancels Live Bird Exhibitions The Iowa Department of Agriculture and last week announced an order canceling all live bird exhibitions at fairs and other gatherings of birds. The order comes as Iowa and the rest of the nation face a continued threat of highly pathogenic avian influenza. The order also prohibits live birds from being sold or transferred at livestock auction markets, swap meets, and exotic sales. The order is in place for a minimum of 30 days, and until 30 days have passed without confirmation of a new infection of HPAI in domestic poultry in the state. A similar order was announced March 23 and was lifted June 3. HPAI is a highly contagious viral disease affecting bird populations. HPAI can travel in wild birds without those birds appearing sick, but is often fatal to domestic bird populations, including chickens and turkeys. The virus can spread through droppings or the nasal discharge of an infected bird, which can contaminate dust and soil. *********************************************************************************** Disability Status Can Affect Food Security Among U.S. Households In 2021, households that included an adult with disabilities reported higher food insecurity rates than households with no adults with disabilities. USDA’s Economic Research Service reports that in 2021, for U.S. households that included an adult out of the labor force because of a disability, 28 percent were food insecure. Among U.S. households with an adult age 18-64 who reported a disability but was not out of the labor force because of it, 24 percent were food insecure. In contrast, seven percent of households with adults without disabilities were food insecure in 2021. Households that include at least one adult 65 and over who reported a disability had food insecurity prevalence rates similar to households with adults without disabilities, at nine percent. In 2021, the prevalence rate of very low food security for households that included adults not in the labor force because of a disability was more than five times that of households that included adults without disabilities. *********************************************************************************** Weekly Gas Prices Lower, Diesel Rises Again After just a week, average gas prices have returned to their decline, with the national average falling 2.6 cents from a week ago to $3.76 per gallon. The national average is down 14.3 cents from a month ago but stands 36.3 cents per gallon higher than a year ago. The national average price of diesel increased 2.3 cents in the last week and stands at $5.34 per gallon. Diesel supplies remain short, prompting the inverse in price between gas and diesel. GasBuddy's Patrick De Haan says, “With oil prices remaining volatile, the outlook is murky, but I’m hopeful in the lead up to Thanksgiving we’ll see prices declining in more states.” The decline has been partly driven by Great Lakes states, where prices fell by 15-25 cents per gallon due to an improvement in the refining situation, and also oil prices. GasBuddy reports U.S. retail gasoline demand fell last week by 0.4 percent.
| Rural Advocate News | Tuesday November 15, 2022 |
Tuesday Watch List Markets The U.S. Labor Department's producer price index for October will be out at 7:30 a.m. CDT Tuesday and is apt to resemble the smaller increases already seen in last Thursday's consumer price index. The National Oilseeds Processors Association will report on members' soybean crush in October later Tuesday morning. Traders will keep watch over the latest weather forecasts and any news pertaining to Ukraine this week. Weather A system moving through on Tuesday is bringing widespread precipitation to the eastern half of the country. Across northern areas it is snow, mostly in the light to moderate category. For the Southeast, it's rain and could be moderate in spots. Cold air continues to pour in behind this system, making it feel like winter and causing wheat to go dormant.
| Rural Advocate News | Monday November 14, 2022 |
Interest and Drought Pressuring Still Strong Farm Economy Interest rates on farm loans increased sharply in the third quarter, and the acceleration in farm real estate values continued to ease. The Kansas City Fed says farm income and credit conditions remained solid, but the pace of improvement softened. The financial impact of the drought also intensified, particularly in the southern and western portions of the district. Despite the recent headwinds, farm finances remained strong and continued to support sound agricultural loan performance. The outlook for the agricultural economy generally remains positive despite a recent pull back in prices for some key farm commodities. Crop market volatility, higher expenses, and drought could hinder income opportunities for some producers, but prices for key crops and livestock remain at multi-year highs, and profit opportunities remain favorable across the farm sector. The recent substantial improvement in farm finances and a surge in agricultural real estate values have also bolstered farmer balance sheets. *********************************************************************************** Combine Sales Rise While Tractor Sales Drop in October Combine harvester sales showed double-digit gains during October in North America. The Association of Equipment Manufacturers says all tractor sales fell in the U.S. and Canada. The latest AEM report says total U.S. ag equipment unit sales stayed above the five-year average for the third time since April. Total farm tractor sales fell 11 percent in October when compared to last year. The biggest drop took place in the sub-40 horsepower category, which fell almost 24 percent. Self-propelled combine sales grew 77 percent to 1,678 units sold. All ag tractor segments above 40 horsepower grew as well, led by a 25 percent rise in 100-plus HP units. Total farm tractor sales are down 14 percent year-to-date, a slight improvement over the prior month. U.S. combine sales are up 16 percent year-to-date. The only segments in Canada that showed growth were four-wheel-drive tractors up 19 percent and combine harvesters up 33 percent. *********************************************************************************** CAB Awards $70,000 in Scholarship Funds Certified Angus Beef awarded an annual record of $70,000 in scholarships to 20 students pursuing careers at the ranch, in meat science, in a research lab, or supporting agricultural business and marketing. The Colvin Scholarship Fund recognizes students for the commitment and energy they bring to agriculture, their education, and their community involvement. Young leaders with bright ideas for making the best beef even better earned five production agriculture, ten undergraduate, and five graduate scholarships. Danielle Matter, CAB director of brand experience and education, says, “All of this year’s recipients shine a bright light on the future of the beef business, and we are excited to see how the awards positively influence these students.” The students recognized through the scholarships are carrying on the legacy of the brand’s co-founder and former executive director Louis “Mick” Colvin. Since 2022, the fund has supported a total of 121 recipients through $418,500 in scholarships. *********************************************************************************** NCBA Applauds Focus on Protecting Food and Ag Sector The National Cattlemen’s Beef Association hailed the signing of the National Security Memorandum to Strengthen the Security and Resilience of U.S. Food and Agriculture. The memorandum helps the federal government to identify the threats facing our food supply and improve national readiness and response. “Our agricultural sector faces a variety of threats that could inhibit cattle producers’ ability to bring beef from pasture to plate,” says NCBA CEO Colin Woodall. “We appreciate the focus on developing threat mitigation strategies.” He also says if everyone works together, “We can protect our industry while ensuring that all Americans have access to wholesome foods like beef.” The memorandum instructs top government officials on identifying threats and coordinating with all levels of government on a response. The NCBA is especially pleased that the Biden Administration is making security and resiliency decisions based on sound data. “These are the kinds of data-driven decisions we support,” says Woodall. *********************************************************************************** Report Show Increasing Acreage and Sustainability for U.S. Cotton Production The U.S. Cotton Trust Protocol released a report showing increasing improvement in the sustainability of American cotton production. The report shows significant improvements in important sustainability metrics. Cotton Trust Protocol members have recorded a 13 percent increase in land use efficiency and a 14 percent increase in water use efficiency. There’s also a 25 percent reduction in energy use, a 21 percent reduction in greenhouse gas emissions, and a 78 percent reduction in soil loss. Seventy percent of growers in the protocol had a positive Soil Conservation Index. Membership in the Cotton Trust Protocol has grown both domestically and internationally. Enrolled acres of U.S. cotton production have doubled to 1.1 million acres since the program’s pilot year. All 17 of the major U.S. cotton-producing states are now represented. Dr. Gary Adams, Cotton Trust President, says the results speak for themselves in the impressive progress made by growers on key sustainability metrics.” *********************************************************************************** Year-Round Ethanol Sales Idea Wins Oil Group Support A Republican senator from Nebraska plans to submit legislation to expand national sales of E15 with the support of a major oil industry trade group. Successful Farming says Deb Fischer believes there is a way to move ahead with year-round E15 sales that have previously been opposed by some oil and environmental groups. The American Petroleum Institute, one of the oil industry’s top trade groups, began discussions earlier this year with the Renewable Fuels Association on a nationwide expansion of E15. The API began cooperating with biofuel trade groups after governors from major corn-producing states requested the Environmental Protection Agency lift restrictions on E15 sales in their states. The governors’ proposal raised oil industry concerns about fuel supplies. “A state-by-state approach would create a boutique fuel market in the Midwest and may negatively impact the reliability of gasoline supply to the region,” says Will Hupman, API Vice President of Downstream Policy.
| Rural Advocate News | Monday November 14, 2022 |
Monday Watch List Markets Back from the weekend, traders will be checking over the latest weather forecasts and any market-related news, especially as Russia is expected to either accept or quit the Ukrainian grain deal by November 19. USDA's weekly report of export inspections is due out at 10 a.m. CDT Monday, followed by Crop Progress at 3 p.m. Weather Widespread cold has gripped most of the nation, making it feel like winter. A small system developing in Texas will spread scattered showers through the southern half of the Plains states but quickly move eastward through the Southeast with rain going into Tuesday. The northern half of the precipitation will be snow and could be moderate in some spots through the Plains and into the Midwest. The reinforcing cold coming behind the system will likely continue the process of turning wheat dormant in a lot of areas.
| Rural Advocate News | Friday November 11, 2022 |
Union Pushes Back Date for Potential Railroad Worker Strike A key railroad workers’ union says it won’t go on strike after November 19. The Brotherhood of Maintenance of Way – Employees Division says it will hold off on any type of action until early December. Freight Waves Dot Com says that will give railroads more time to come up with their best offer without the pressure of an imminent walkout. The status quo period will be in place along with three other unions that have yet to approve their labor agreements. This period, known as a “cooling-off period,” means unions or railroads can’t engage in any work stoppages according to federal law. The union says it’s the last chance for railroads to do the right thing by voluntarily agreeing to provide paid sick leave to all employees. “Congress should not intervene and rescue the railroads if they continue to refuse to provide workers with paid sick leave,” the union says in a statement. *********************************************************************************** Export Exchange Leads to $225 Million in Sales The Export Exchange Conference recently hosted by the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association is already paying off. According to surveys of grain buyers who attended the event, they bought $225 million worth of grain and ethanol co-products. In addition to that total, another $128 million in potential sales is under negotiations. That equates to almost 515,000 metric tons of grains and co-products traded at the conference or immediately before or after. “Trade is absolutely critical to U.S. farmers right now, and these sales show that buyers attending the Export Exchange took the buying opportunities very seriously,” says USGC President and CEO Ryan LeGrand. Emily Skor, CEO of Growth Energy, says, “Exports of U.S. grains and DDGS create jobs at home while helping international companies satisfy their demand for quality products.” Geoff Cooper, RFA President and CEO, says buyers bought enough DDGS to fill three Panamax vessels. *********************************************************************************** USMEF Conference Examines Exports, Constraints, and Headwinds The U.S. Meat Export Federation’s Strategic Planning Conference in Oklahoma City attracted farmers, ranchers, processors, and exporters from across the country. While U.S. red meat exports will likely set a record in value, there are several obstacles ahead for the industry, including a sluggish global economy, weaker currencies, and the lingering effects of COVID. Production challenges are also mounting, especially with severe drought. Keynote speaker Randy Blach (Block) of CattleFax says despite the challenges, the U.S. red meat industry is still remarkably efficient and sustainable. He says American producers are well-positioned for success, even in this challenging environment. “We produce more beef than Brazil with one-third the number of cattle,” Blach says. “It’s our high-quality, grain-fed beef.” USMEF President and CEO Dan Halstrom updated members on current export results and the outlook for the months ahead. He also highlighted the importance of market diversification that’s helped exports maintain their record pace. *********************************************************************************** Mexican Lawmakers Pushing to Ban Almost 200 Pesticide Chemicals A group of lawmakers in Mexico is attempting to ban almost 200 chemicals used in pesticides, and the country’s farmers are alarmed at the prospect. While supporters of the idea want pesticides banned because it’s harmful to human health, farmers say that could devastate Mexico’s ability to produce food. Head Topics Dot Com says there’s a growing push in Mexico against using pesticides and growing genetically modified corn. However, some in the Mexican government say this proposal goes too far too quickly. The country is already getting rid of glyphosate, and the country intends to ban genetically modified corn in 2024. The Senate will soon take up the plan to phase out 183 different chemicals contained in commonly-used pesticides by 2024. The proposed bill pushes alternatives like bio-inputs and extract products to replace pesticides. If the bill is approved, it moves to a Senate vote and then the lower house. *********************************************************************************** USDA Investing $50 Million in Healthier School Meals USDA’s Food and Nutrition Service launched a new initiative for healthier school meals through a $50 million grant opportunity. It will support collaboration with the food industry to develop nutritious and appetizing school meals for students. “We’re investing in innovative solutions and challenging the industry to partner with us to ensure every student has access to healthy school meals,” says Ag Secretary Tom Vilsack. “For children to reach their full academic potential, they must build healthy eating habits, and USDA recognizes the importance of private sector partnership in making this happen.” The request for grant applications is now open and marks the second phase of USDA’s $100 million Healthy Meals Incentives Initiative. The initiative is designed to improve the quality of school meals by strengthening access to nutritious food products. Up to four non-governmental organizations will be selected by the Food and Nutrition Service to manage funds for the School Food System Transformation Challenge. *********************************************************************************** Weekly Ethanol Output Hits Four-Month High The Energy Information Administration says ethanol production hit its highest level in four months while inventories declined during the week ending on November 4. The weekly output rose to an average of 1.051 million barrels per day. That’s up from 1.04 million barrels during the previous week and the highest level since June 24. The Midwest, which produces the most ethanol of any region in the country saw production rise to 992,000 barrels per day on average. That’s up from 981,000 the prior week and the highest production level since June 17. The Midwest gains were the entirety of the additions as production in most regions stayed the same from the previous week. East Coast production remained at 12,000 barrels a day for the third-straight week, and Rocky Mountain production was steady at 15,000 barrels a day for the fourth-straight week. Ethanol inventories that week dropped to 22.192 million barrels.
| Rural Advocate News | Friday November 11, 2022 |
Friday Watch List Markets Friday is Veterans Day, a special day to honor those that have served. Futures markets will trade as usual and the University of Michigan's index of consumer sentiment for November is due out at 9 a.m. CDT. Traders will watch the latest weather forecasts and be attentive to any news that comes from Friday's meeting of Russian and U.N. officials pertaining to the Ukrainian grain deal. Weather The remnants to Nicole are spreading rain across the Appalachians and East Coast for Friday. Some of those showers are falling west of the mountain range, which will add a minor boost to the inland river systems. A sharp cold front continues to trek eastward through the country with very cold, arctic air settling in behind it that will last through next week. As the front passes, temperatures will fall dramatically.
| Rural Advocate News | Thursday November 10, 2022 |
USDA Releases November WASDE USDA released the November World Agriculture Supply and Demand report Wednesday. This month's 2022/23 U.S. corn outlook is for higher production, larger feed and residual use, and greater ending stocks. Corn production is forecast at 13.930 billion bushels, up 35 million from last month, on a 0.4-bushel increase in yield to 172.3 bushels per acre. The season-average corn price received by producers was unchanged at $6.80 per bushel. The soybean outlook for 2022/23 increased production, crush, and ending stocks. Soybean production is forecast at 4.35 billion bushels, up 33 million on higher yields. Higher yields in Iowa and Missouri account for most of the change in production. The season-average soybean price for 2022/23 is forecast at $14.00 per bushel, unchanged from last month. And the outlook for 2022/23 wheat this month shows stable supplies, increased domestic use, unchanged exports, and slightly lower ending stocks. The projected 2022/23 season-average farm price was unchanged at $9.20 per bushel. *********************************************************************************** No Change in House/Senate Ag Leadership Leadership of the House and Senate Agriculture Committees will likely be the same in the next Congress. Who controls the majority in the House, along with the Senate, will have a significant say in the 2023 Farm Bill process. Ranking Republican Glenn GT Thompson was reelected Tuesday and seems poised to chair the committee, if Republicans can hold on to take the majority in the House. Meanwhile, Georgia voters reelected Democrat David Scott, the current House Agriculture Committee chairman, who seems likely to remain the top Democrat on the committee. Meanwhile, the Senate Agriculture Committee will likely see the same leadership return. Senator Debbie Stabenow, a Michigan Democrat, was not up for re-election, and Arkansas voters reelected Republican John Boozman. The so-called red wave did not appear on election day and seems to give way to thin majorities for both the House and Senate. Final election results for all races may take a few more days. *********************************************************************************** Maryland and Missouri Approve Marijuana Legalization Voters in Maryland and Missouri approved ballot measures Tuesday to legalize and regulate marijuana for adult use. Similar measures were defeated in Arkansas, North Dakota, and South Dakota. Maryland Question 4 was referred to the ballot by the Legislature, while Missouri Amendment 3 was placed on the ballot via citizen initiative. Both measures make possession of limited amounts of cannabis legal for adults 21 and older and authorize the regulated production and sale of cannabis for adult use. Adult-use legalization laws have now been adopted in 21 states, D.C., and two U.S. territories, while an additional 16 states and two territories have legalized cannabis for medical use. VS Strategies is a national policy and public affairs firm based in Denver specializing in cannabis and drug policy. A VS Strategies spokesperson says, “Support for ending marijuana prohibition in the states is spreading much like it did at the end of alcohol prohibition.” *********************************************************************************** 2022 Farm Service Agency County Committee Elections Open This Week The Department of Agriculture began mailing ballots for the Farm Service Agency county and urban county committee elections this week. Elections are occurring in certain Local Administrative Areas for these committee members who make important decisions about how federal farm programs are administered locally. FSA Administrator Zach Ducheneaux (DOO-sheh-know), says, "Voting in these elections is your opportunity to help ensure our county committees reflect the diversity of our agriculture." Producers must participate or cooperate in an FSA program to be eligible to vote in the county committee election. A cooperating producer is someone who has provided information about their farming or ranching operation but may not have applied or received FSA program benefits. Producers who are not of legal voting age but supervise and conduct farming operations for an entire farm are eligible to vote in these elections. Producers and landowners must return ballots to their local FSA county office or have their ballots postmarked by December 5, 2022, in order for those ballots to be counted. *********************************************************************************** SNAP Participation Varied Across States from 2019 to 2021 In fiscal year 2021, USDA’s Supplemental Nutrition Assistance Program served an average of 41.5 million people monthly. USDA’s Economic Research Service Wednesday reported the 2021 figure is an increase of about 5.8 million per month compared with fiscal year 2019. SNAP participation increased nationwide during the COVID-19 pandemic to around 12.5 percent of the total U.S. population in 2021 from about 10.9 percent in 2019. In addition, SNAP participation data in February 2019 were artificially low because of the Federal Government shutdown at the time, impacting the average participation rate. SNAP participation also varied across states because of differences in program administration and economic conditions. Over this two-year period, 41 states saw an increase in SNAP participation, which ranged from a 0.1-percent increase in Mississippi to a 6.6-percent increase in the District of Columbia. In D.C., the percentage of participants increased to 20.9 percent in FY 2021 from 14.3 percent in FY 2019. *********************************************************************************** Farmers Encouraged to Keep the Stubble During No-Till November The Natural Resources Conservation Service encourages farmers to keep the tillage equipment in the machine shed during No-Till November. In a Wisconsin campaign first launched in 2017, the NRCS project is a conservation twist on the national cancer awareness No Shave November campaign that encourages people not to shave during the entire month. The NRCS campaign encourages farmers to "keep the stubble" on their harvested crop fields. The campaign has reached more than two million people nationally through Twitter and local media since 2017. Wisconsin NRCS Acting State Conservationist Jamie Keith, says, "No-till farming is a cornerstone soil health conservation practice, which also promotes water quality while saving farmers time and money.” One of the first soil health principles is “do not disturb.” Keith of Wisconsin adds, “This campaign is a fun way to remind farmers about the important relationship between tillage and soil health.”
| Rural Advocate News | Thursday November 10, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as the Labor Department's reports on consumer prices for October and weekly jobless claims, as well as the U.S. Drought Monitor. The Energy Department's weekly report on natural gas storage is set for 9:30 a.m., followed by the Treasury Department's report on the federal budget in October at 1 p.m. Weather A strong storm system moving through the middle of the country on Thursday is bringing heavy snow and potential blizzard conditions to the Northern Plains. The cold front will sweep eastward and very cold air is filling in behind the system. While precipitation is heavy across the north, it is far less intense everywhere else and drought conditions continue to grow for southwestern Plains wheat. Tropical Storm Nicole is making landfall in central Florida early this morning and spreading heavy rain into the Southeast throughout the day.
| Rural Advocate News | Wednesday November 9, 2022 |
Results From Ag Lender Survey Released The top concern facing agricultural lenders going into 2023 is interest rate volatility, according to the 2022 Agricultural Lender Survey report. The report announced this week is produced jointly by the American Bankers Association and Farmer Mac. Nearly half of respondents ranked interest rate volatility among their top two concerns, up 35.5 percentage points from last year. While rising rates have helped bolster bank net interest margins, a combination of higher funding costs, fears of weakening loan demand and strong competition is expected to cut into rising yields. Most lenders reported overall farm profitability increased in the last year. Lenders expect conditions to deteriorate next year, with 52.6 percent projecting a decline in farm profitability in the next 12 months. However, this remains well below the 2016-2020 survey average of 82.3 percent. Jackson Takach (tack-ish), Chief Economist at Farmer Mac, says, “Looking ahead, ag lenders are keeping a close eye on expenses, as feed, fertilizer, fuel, and other input costs remain elevated." *********************************************************************************** New FMI Report Reveals Consumer Playbook for Foodservice at Retail The Food Industry Association released its Power of Foodservice at Retail 2022 report Tuesday. The report shows key insights into consumer demand for foodservice at retail, and comes at a critical time when 25 percent of shoppers are purchasing more grocery foodservice items than a year ago, surpassing dollar and unit sales volume from last year and 2019. The analysis suggests that food retailers can compete for consumers’ food dollars by maximizing value, nutrition and convenience, while clearly communicating these benefits to consumers. As inflation continues to affect Americans’ budgets, shoppers are preparing more meals at home – focusing on weekly meal planning and scratch cooking. Fifty-three percent say grocery foodservice items are a good value compared to eating at a restaurant or ordering takeout. A growing number of shoppers are ranking nutritional value highly when considering foodservice options, as 58 percent of consumers are interested in vegetables or other healthy options. However, only slightly more than a third are very satisfied with the nutrition levels of current foodservice offerings. *********************************************************************************** Grassley Presses Biden Administration on New Rural Mental Health Law Republican Senator Chuck Grassley of Iowa is requesting an update on the Biden administration’s efforts to implement the Seeding Rural Resilience Act. Grassley sent the request to the Department of Agriculture and Health and Human Services this week. The 2020 legislation is designed to curb the rising rate of suicide in rural areas – in the National Defense Authorization Act. The law requires interagency coordination between USDA and HHS. Grassley notes current economic conditions make timely implementation of the law even more important, adding, "The timely implementation of the Seeding Rural Resilience Act can provide life-saving resources to rural Americans." In February and again in June, Grassley asked Surgeon General Vivek Murthy about efforts he is taking to support implementation of the Seeding Rural Resilience Act, given the surgeon general’s emphasis on improving mental health. To date, Grassley has not received an answer from the surgeon general. *********************************************************************************** American Farmland Trust Releases Updated CaRPE Tool American Farmland Trust Tuesday released its updated Carbon Reduction Potential Evaluation Tool. The announcement includes the first of a series of briefs to help states estimate greenhouse gas emission reduction opportunities from the climate-smart cropland and grazing land management practices. The tool and state-specific briefs, which summarize the carbon benefits of climate-smart practices and provide state and federal policy recommendations to increase their adoption, are now available. These briefs are designed to help policymakers and land managers prioritize efforts for cost-effective climate benefits available from the agricultural sector. The tool has been available from AFT since the fall of 2020 and used by states to build working lands solutions into climate mitigation plans and state soil health efforts. Recent updates to the tool allow users to view data by USDA Farm Resource Regions and see results by counties and states and get the weighted emission reduction coefficient. Information on the free, publicly available tool and how to access it can be found at farmland.org. *********************************************************************************** Farm Credit Organizations Launch Terrain Three farm credit organizations this week launched Terrain, a new source of agricultural industry analysis for U.S. farmers and ranchers. American AgCredit, Farm Credit Services of America, and Frontier Farm Credit partnered to offer Terrain to their customers. Curt Hudnutt, CEO of American AgCredit, says, “Serving farmers and ranchers – from everything between Iowa’s hog and corn farmers to California’s dairy and vineyard owners – is our shared mission Terrain’s experts share insights on trends and market-moving events through reports, videos, presentations and more. Mark Jensen, CEO of Farm Credit Services of America and Frontier Farm Credit, adds, “Terrain provides unique expertise to support the future of agriculture and rural communities.” Visit terrainag.com for Terrain’s current perspective on the impact of interest rates on agricultural loans, a discussion on how grain storage costs change with interest rates, and insights on the near-term risks for the hog farming sector. *********************************************************************************** U.S. Sweet Potatoes Enjoyed Around the World The United States is not the only country enjoying U.S. sweet potatoes. According to the Food and Agricultural Organization of the United Nations, the United States was the top global exporter, by volume, of sweet potatoes in 2020. USDA’s Economic Research Service Tuesday announced U.S. sweet potato exports on a fresh-weight basis increased 1,157 percent from 2001 to 2021. And the annual value of exports grew from $14 million to $187 million in the same period. Promotion of the health benefits and food companies’ expanding sweet-potato offerings, such as sweet potato chips and fries, have helped fuel the expansion. Exports to the United Kingdom and European Union experienced strong year-over-year growth from the mid-2000s until 2018. The United States ranks seventh globally in sweet potato production, according to FAO. Over the past 20 years, top-producing U.S. states more than doubled sweet potato production to meet growing international and domestic demand.
| Rural Advocate News | Wednesday November 9, 2022 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report, including ethanol production will be out at 9:30 a.m. CST, followed by USDA's WASDE and Crop Production reports at 11 a.m. Traders will pay attention to this week's weather forecasts with significant temperature changes expected through the week. Outside markets also remain a frequent concern. Weather A sharp cold front is draped over the North-Central U.S. Wednesday morning where scattered showers are building up ahead of a system that is pushing through the Intermountain West. That system will emerge into the Plains Wednesday night and increase precipitation over northern areas, turning a lot of it over to heavy snow in the Dakotas by Thursday morning. Strong winds will accompany the system as well. Tropical Storm Nicole is headed toward Florida with landfall Wednesday night or early Thursday morning, possibly as a hurricane. Regardless, heavy rain will move into Florida that is still trying to recover from Hurricane Ian in late September.
| Rural Advocate News | Tuesday November 8, 2022 |
September Pork Exports Continue Upward Trend; Pace Cools for Beef U.S. pork exports topped year-ago totals for the second consecutive month in September, according to the U.S. Meat Export Federation. September beef exports were below last year for the first time in 2022, but exports remain on a record pace through the first three quarters of the year. Pork exports reached 222,202 metric tons in September, up one percent from a year ago. Export value increased nine percent to $664.8 million – the highest since June 2021. Through September, pork exports were 13 percent below last year at 1.94 million metric tons, valued at $5.57 billion. September beef exports totaled 115,487 metric tons, valued at $890.3 million, down seven percent from a year ago in both volume and value. For the first nine months of 2022, beef exports were still four percent above last year at 1.12 million metric tons. Export value reached $9.12 billion, up 20 percent and already achieving the second-highest total for any calendar year, trailing only the 2021 record of $10.58 billion. *********************************************************************************** Poultry Industry Releases Economic Impact Study The U.S. Poultry and Egg Association, National Chicken Council, National Turkey Federation and United Egg Producers recently released an updated economic impact study. The study highlights the poultry industry's positive impact on jobs, wages, and federal and state revenue in the United States. A dynamic and integral part of the national economy, the U.S. poultry industry provides more than two million jobs, $125 billion in wages, $555 billion in economic activity and $33 billion in government revenue. Specifically, the study found the chicken industry provided $417 billion in economic activity, while the turkey industry provides $99.5 billion, and the egg industry provides $44.7 billion. John Starkey, president of the U.S. Poultry and Egg Association, says, “We are pleased to continue providing this valuable tool across the industry that shows the positive economic impact the poultry industry has on our nation and communities.” The U.S. Poultry and Egg Association funded the economic impact study. *********************************************************************************** California Top Purchaser of Crop Insurance for Specialty Crops New data from USDA's Economic Research Service shows California farmers purchase the most Federal Crop Insurance policies for Specialty Crops. California led the country in policies for specialty crops in 2020, followed by Florida, Washington, North Dakota, and Minnesota. The states also produce the most fruits and vegetables, California, Florida, and Washington, and specialty field crops, from North Dakota and Minnesota. Specialty crops are a commodity group which includes fresh or dried fruits; tree nuts; vegetables; pulse crops such as dry beans, peas, and lentils; and horticulture nursery crops. California’s policies reflect the variety of specialty crops produced in the state, including almonds, grapes, oranges, walnuts, and raisins. Most North Dakota policies cover field crops—dry beans and dry peas. In 2020, specialty crops accounted for 25 percent of the value of U.S. crop production. Crop Insurance policies can mitigate risks by providing payments if insured crops experience losses caused by naturally occurring events and market conditions. *********************************************************************************** Plant Based Products Council Announces First Annual Industry Conference The Plant Based Products Council Monday announced its first annual conference. The PBPC 2023 Annual Conference: Circular Solutions, will explore the innovations, business models, and policies influencing the entire lifecycle of bioproducts in the promotion of a more circular economy. Attendees will hear from and network with industry leaders, policymakers, brands, and experts through panels, keynotes, networking sessions, and more. Plant Based Products Council Executive Director Jessica Bowman says, "We are thrilled to launch our annual conference convening leading experts and innovators to discuss their role in this emerging industry and what solutions, challenges, and opportunities lie ahead." The conference is planned for March 27-29, 2023, in Washington, D.C. The Plant Based Products Council is an advocacy association working toward a more circular bioeconomy through greater adoption of renewable, plant-based materials supported by appropriate end-of-life infrastructure. Members of the organization include ADM, Cargill, and the National Corn Growers Association. *********************************************************************************** High Diesel Prices Put Strain on Farmers With diesel prices more than $1.50 per gallon high than this time last year, the American Farm Bureau Federation calls on the Biden administration to bring more domestic supply online, A ban on U.S. imports of petroleum from Russia, lower domestic production capacity, and seasonal demand are all contributing to higher costs. Russia provided 20 percent of the petroleum imported into the U.S. in 2021, but that was halted after Russia's invasion of Ukraine. Further, since 2019, domestic diesel production capacity has dropped by 180,000 barrels per day. Several plants closed during the coronavirus pandemic and are not yet back online. AFBF President Zippy Duvall, in a letter to President Joe Biden, says, "High diesel prices are severely impacting our farmers and ranchers, causing increased costs to consumers, and adding to food insecurity." National diesel prices are expected to average $4.86 per gallon through the end of the year, according to government projections, and $4.29 per gallon in 2023. *********************************************************************************** Gas and Diesel Prices Rise Again For the first time in the last month, the nation’s average gas price increased, rising 6.2 cents from a week ago to $3.78 per gallon. The national average is down 11.5 cents from a month ago but stands 37.8 cents per gallon higher than a year ago. The national average price of diesel increased 3.4 cents in the last week and stands at $5.32 per gallon. National diesel supply remains tight, but supplies of diesel did see a slight rise last week. GasBuddy’s Patrick De Haan says, “Brief outages at a limited number of stations are possible, but with refineries continuing to churn out product and maintenance wrapping up, I’m optimistic the situation will improve.” Oil saw a strong rally last week as inventories continued to decline and Strategic Petroleum Reserve releases slowed down. Last week’s report from the Energy Information Administration showed a notable drop in oil inventories of 3.1 million barrels, while the Strategic Petroleum Reserve saw a drop of 1.9 million barrels.
| Rural Advocate News | Tuesday November 8, 2022 |
Tuesday Watch List Markets There will be few government reports early on Tuesday as the mid-term elections take place. DTN will be watching for more developments on the Ukraine export deal and any export sales news, along with any changes in South American weather. Weather A system continues to move through the Northern Plains on Tuesday, dragging a cold front with a band of snow behind it in Montana. In the Plains, winds are increasing and spotty showers will develop from Texas to Minnesota, more consistent farther north toward the front. A stronger storm continues to build out in the West with heavy precipitation in drought areas in California and Nevada. Dry and warm conditions for eastern areas of the country may want to get fieldwork completed before this system moves east later this week.
| Rural Advocate News | Monday November 7, 2022 |
Ag Groups Ask Congress to Prevent Potential Rail Strike Over 190 members of the Agricultural Transportation Working Group want Congress to prepare to help prevent a railroad strike or lockout. Beef Magazine says a strike or lockout would shut down all rail-dependent facilities and result in devastating consequences to both national and global food security. The Biden administration successfully helped broker an agreement between the National Railway Labor Conference and 12 labor unions on September 15. But two unions voted against the agreement while four others continue reviewing it. The food and agriculture groups sent a letter to congressional leadership saying action will be necessary if the parties fail to reach an agreement. “Resolution of the dispute before November 19 is necessary to ensure uninterrupted rail service,” the letter says. “Adding urgency to the matter is critical inputs, and agricultural products like ammonia could be embargoed starting November 14.” They say a rail strike would be “catastrophic” to the U.S. economy. *********************************************************************************** Food Price Index Virtually Unchanged in October The FAO Food Price Index averaged 135.9 in October, virtually unchanged from September. The index of every commodity group except for cereals was down month-to-month. The UN’s Food and Agriculture Organization says a higher Cereal Price Index countered drops in the indices for vegetable oils, dairy, meat, and sugar. With the latest update, the food price index has dropped almost 24 points from its peak in March but remains 2.7 points above October 2021. The Cereal Price Index averaged 152.3 points, 4.4 points higher than in September and 15.2 points above the same time last year. The FAO Vegetable Oil Price Index averaged 150.1 points, down 2.4 points month-on-month and nearly 20 percent below last year’s level. The Dairy Price Index averaged 140.1 in October, down 2.5 points from September and the fourth-consecutive monthly drop. The Meat Price Index dropped for the fourth month in a row, averaging 118.4 points in October. *********************************************************************************** Mississippi River Shipments Down 78 Percent The USDA’s Agricultural Marketing Service says the number of grain barges being unloaded in New Orleans during September and October dropped significantly. An AMS report says the number of barges is 20-30 percent lower than in recent years. The slowdown coincides with river closures and restrictions on barge companies that reduced the bar tow. Typically, 30-40 barges can move down the river together, and the new restriction says no more than 25. The tonnage movement has been even weaker. Since September, tonnage going through locks was down more than 40 percent below recent years. The significant decline in tonnage is consistent with reports of how barges have been forced to reduce their draft. Barges are normally loaded to an 11-12-foot-deep draft during the fall. However, companies started imposing nine-foot barge draft restrictions in October. That can lead to a reduction of 10,000-15,000 bushels per barge. Tonnage appeared to pick up in October. *********************************************************************************** GAO Report is a “Gift” to Refiners The General Accounting Office released a report on the Environmental Protection Agency’s decision-making when it comes to small refinery exemptions from the Renewable Fuel Standard. The report was first requested three years ago by renewable fuel supporters in Congress. But much has changed since then, and biofuel groups say the report is obsolete. Renewable Fuels Association President Geoff Cooper says the economic analysis can only be described as a creative and obscure acrobatic routine. In the summer of 2019, a group of renewable fuel supporters in the House and Senate asked for an investigation into two former EPA administrators. “More than three years later and less than a week before midterm elections, the GAO puts out a shoddy report that’s friendly to oil refiners and tries to answer questions no one ever asked,” Cooper says. “After all that, the report says small refiners’ costs of compliance are 0.5 percent above larger refiners.” *********************************************************************************** Farm Bureau Leaders Graduate from Women’s Boot Camp Fifteen farm and ranch women leaders graduated from the fall session of the Women’s Communication Boot Camp hosted by the American Farm Bureau. The four-day course featured hands-on sessions related to public speaking, working with the media, and messaging. Graduates will use that training in a variety of ways, including participating in local media opportunities to support Farm Bureau’s policy work. They can also share information with elected officials and join social media campaigns that spotlight modern agriculture. “The women leaders who completed this training will use their skills in their communities and for Farm Bureau on local, state, and national levels,” says Isabella Chism, Chair of the Women’s Leadership Committee. “Consumer interest in food and how its produced remains high, which means effective communication for agriculture is more important than ever.” A spring session of the boot camp will be held April 3-6, 2023, with applications opening in December. *********************************************************************************** NCC Delivers Comments on Proposed Salmonella Framework The National Chicken Council delivered public comments on a proposed regulatory framework for salmonella in poultry products during a virtual meeting with the Food Safety and Inspection Service. The NCC comments addressed each of the components the agency is considering as part of a new strategy. Food safety is a top priority for the broiler industry, and NCC supports changes in regulations that are based on sound science, and robust data, and are demonstrated to positively impact public health. “The industry is and should be expected to control potential pathogens, but there isn’t a one-size-fits-all approach to doing so,” says Dr. Ashley Peterson, NCC’s Senior Vice President of Scientific and Regulatory Affairs. “in a time of extreme inflation coupled with ongoing food security challenges, a command-and-control approach will do nothing to improve public health and remove chicken from the meat case.” The NCC wants a more collaborative effort to promote food safety.
| Rural Advocate News | Monday November 7, 2022 |
Monday Watch List Markets There will be few government reports early on Monday, followed on Tuesday by the mid-term elections. DTN will be watching for more developments on the Ukraine export deal and any export sales news, along with any changes in South American weather. Weather A ridge of high pressure is keeping most of the country east of the Rockies warm on Monday outside of the Northern Plains. A few spotty showers will be possible across the Southern Plains through the Tennessee Valley, but most areas are going to stay dry. That is not true for the West where a deep trough is building in the region. A strong low-pressure center is also forming up around Montana, producing some stronger winds and spreading a little snow to the Northern Plains, but the heavier precipitation will be up in the Canadian Prairies.
| Rural Advocate News | Friday November 4, 2022 |
Russia Resumes Participation in Black Sea Grain Deal Russia resumed participating in the Black Sea Grain Export Agreement four days after suspending it due to an alleged Ukraine attack on Russian ships in the Black Sea. Reuters says that brought immediate relief from pressure on food prices and eased worries over a renewed global food shortage. The United Nations, a key sponsor in the deal to help free up Ukrainian grain exports, says Moscow is asking for follow-up on the parts of the deal intended to help Russian food and fertilizer exports. Russian officials want more accomplished to make sure the country can export its enormous food and fertilizer output despite Western sanctions. Russia’s agricultural exports don’t specifically fall under sanctions imposed by the U.S., European Union, and others, but they’re impeded by restrictions on its financial, logistical, and insurance sectors. The initiative was agreed to in July for 120 days. The export deal expires on November 19. *********************************************************************************** Biofuel Groups File Motion to Intervene in SRE Lawsuit Growth Energy, the Renewable Fuels Association, the American Coalition for Ethanol, and National Farmers Union filed a motion to intervene to support the Environmental Protection Agency in the D.C. District Court of Appeals. The groups filed the motion to support the agency’s decision to deny 69 petitions from refineries seeking small refinery exemptions from the Renewable Fuel Standard program for one or more compliance years between 2016 and 2021. The groups say the decision helped to strengthen U.S. energy security, protect the climate, and delivered relief at the pump during record-high gas prices. “Now, certain refiners want to reverse this process and turn back the clock to an era of gross mismanagement and abuse of the SRE provisions of the RFS program,” they say in the motion. “The RFS is back on track and holding refiners accountable to ensure lower prices and cleaner options at the pump for American families.” *********************************************************************************** Cow-Calf Operations Vary in Adopting Rotational Grazing Rotational grazing is a frequently discussed livestock management practice with a wide variety of public and private benefits. Little information has been available on the adoption rate of rotational grazing, so the Economic Research Service at USDA issued a report on the subject. Data shows that 40 percent of cow-calf operations report using rotational grazing. However, just 40 percent of that number use intensive rotational grazing. Operations that retain the majority of their calves through the initial feeder stage for later sale to feedlots are the most likely to adopt intensive rotational grazing. Rotational grazing operations are more likely than continuous grazing operations to participate in the Environmental Quality Incentives Program and Conservation Stewardship Program. ERS says that rotational grazing is more common in the Northern Plains, Western Corn Belt, and Appalachian regions, where about one-half of those operations use the practice. Most grazing systems are simple, with five or fewer paddocks. *********************************************************************************** NCBA Accepting Nominations for the Environmental Stewardship Program The National Cattlemen’s Beef Association is accepting applications until March 10 for the 2023 Environmental Stewardship Award. The yearly award recognizes outstanding stewardship practices and conservation achievements of U.S. cattle producers. “Cattle producers are actively working to protect and improve the environment because they know environmental stewardship and good business go together,” says NCBA President Don Schiefelbein (SHEEF-el-byne). Any group, individual, or organization is eligible to nominate one individual or business raising or feeding cattle. Individuals and families may not nominate themselves, although nominees may be involved in preparing the application. Along with a typed application, one nomination letter and three letters of recommendation highlighting the nominee’s leadership in conservation are required. Nominees don’t have to be NCBA members but should support the objectives of their state and national organizations. Regional winners will be announced at the 2024 Cattle Industry Convention. For info or to download a nomination packet, go to environmentalstewardship.org. *********************************************************************************** SMART Act Would Double Investments in Ag Export Programs The Coalition to Promote U.S. Agricultural Exports applauds the introduction of the Supporting Market Access to Reinvigorate Trade Act of 2022. The SMART Act would double funding for USDA’s Market Access Program and Foreign Market Development Program. Both are critical to expanding global market access for U.S.-produced agricultural exports. A recent economic study predicted that doubling funding for these programs would generate an additional $44.4 billion in American agricultural exports from 2024 to 2029. “Reinvestment in export promotion programs is needed now,” says Robbie Minnich, Coalition Chair. “USDA is forecasting an agricultural trade deficit in 2023 for the first time in years because the growth in American farm exports is not keeping pace with imports, signaling a more competitive global landscape.” Geopolitical conflict is making the future of trade more uncertain, so the coalition says the additional investment is an essential piece of policy to reinforce America’s competitive standing overseas. *********************************************************************************** U.S. Cattlemen Applaud Funding to Expand Local Meat Processing Ag Secretary Tom Vilsack announced $73 million in funding for the first round of the Meat and Poultry Processing Expansion Program. The funds will get used to increase competition across the cattle marketplace and support increased producer opportunities, and the U.S. Cattlemen’s Association appreciates the USDA’s work. “We’re pleased to see the breadth and scope of projects supported through the funding,” says USCA President Brooke Miller. “The importance of this federal investment in our nation’s independent meat producers is evident when looking at individual projects.” As an example, they point to Upper Iowa Beef which received a grant that will expand its processing capacity by over 50 percent while creating new jobs for the community and premium revenue opportunities for independent producers. “These federal dollars can help usher in a new era of U.S. food production,” Miller says. “We’re encouraged by the announcement and look forward to further rounds of funding.”
| Rural Advocate News | Friday November 4, 2022 |
Friday Watch List Markets DTN will be watching the non-farm payrolls report, along with new unemployment numbers. We will also be watching for more developments on the Ukraine export deal and any export sales news, along with any changes in South American weather. Weather A cold front will pick up some steam with increasing showers and thunderstorms on Friday across the Mississippi Valley. That includes some heavier rain potential as well. Some of the thunderstorms across eastern Texas and Oklahoma into Arkansas and Louisiana could be severe with all threats being possible. Temperatures are falling dramatically behind the front by some 30 to 40 degrees, but are only seasonably cold ahead of the front. Winds on both sides of the front continue to be breezy with gusts generally in the 30 to 40 mph range.
| Rural Advocate News | Thursday November 3, 2022 |
Vilsack Announces Funding to Increase Meat Processing Capacity Agriculture Secretary Tom Vilsack Wednesday announced a $73 million investment through the first round of the Meat and Poultry Processing Expansion Program. The funding supports 21 grant projects to expand meat and poultry processing capacity, increasing competition, supporting producer income, and strengthening the food supply chain to lower costs, according to USDA. Vilsack says, "These investments create more opportunities for farmers and ranchers to get a fair price, while strengthening supply chains." In addition, the Administration is investing $75 million for eight projects through the Meat and Poultry Intermediary Lending Program and more than $75 million for four meat and poultry-related projects through the Food Supply Chain Guaranteed Loan program. The program was designed to support capacity expansion projects in concert with other private and public finance tools. Additional announcements are expected in the coming weeks. USDA will also soon begin taking applications for a new phase to deploy an additional $225 million investment. *********************************************************************************** Regionality of Avian Flu Outbreak Limits Losses in Broiler Production USDA's Economic Research Service reports highly pathogenic avian influenza in 2022 has major regionality differences. The outbreak has had relatively little impact on the broiler industry based on the volume of broiler meat produced in the United States. HPAI was detected in Indiana in February 2022 for the first time nationally since 2015 and was soon confirmed at multiple commercial poultry operations. Flocks at operations with detected infections were depopulated to prevent further spread of HPAI. Because of the limited overlap of the 2022 HPAI outbreak with broiler-producing regions, commercial flocks in the top four broiler-producing States – North Carolina, Georgia, Arkansas, and Alabama – have largely avoided HPAI. Of the 43.8 million commercial birds depopulated as of October 7, 2022, 2.3 million were meat-producing broilers. This represents less than a tenth of one percent of typical annual broiler slaughter. The effect on broiler production during the 2015 outbreak was also relatively small. *********************************************************************************** CoBank: Higher-Priced Turkeys on the Holiday Menu A new analysis from CoBank suggests consumers will see smaller and higher-priced turkeys this Thanksgiving season. After grappling with staff shortages, plant closures, and supply issues, the turkey industry has been hit by yet another problem in 2022: the worst Highly Pathogenic Avian Influenza outbreak in U.S. history. HPAI leads to the depopulation of birds, but is also impacting turkey size. The average slaughter weight is below the three-year average. However, there will be a sufficient number of birds. Turkeys will be available, but they will be more expensive and probably a bit smaller than what home chefs are used to. Seasonal cold storage whole bird inventory volumes are at their lowest level since 2006. Wholesale, frozen turkeys are currently selling in the $1.70 per pound range, about 30 percent higher than last year. Fresh, boneless breast meat is trading at $6.50 per pound, a 350 percent increase versus last fall. *********************************************************************************** USDA Opens 2023 Ag Outlook Forum Registration The Department of Agriculture recently opened registration for the 99th Agricultural Outlook Forum. The 2023 event is back in-person, held February 23-24, at the Crystal City Gateway Marriott in Arlington, Virginia. Additionally, all sessions will be live-streamed, and participants can attend the event in person or virtually. Registration is required for both virtual and in-person attendance, however, there is no cost to attending the Forum virtually. The 2023 event will feature comments from USDA Chief Economist Seth Meyer as he unveils USDA's initial forecast for the agricultural economy, commodity markets, and trade in 2023. Additionally, Agriculture Secretary Tom Vilsack will deliver the event's keynote address. More than 100 subject matter experts, executives and academics will discuss the largest issues impacting agriculture today and potential solutions, including supply chain challenges, climate-smart agriculture and more. Interested participants can register to attend, in-person or virtually, on the USDA website. More than 4,500 people attended the 2022 virtual Forum. *********************************************************************************** National Turkey Federation Executive to lead Fisheries Institute The National Fisheries Institute this week named Lisa Wallenda Picard as incoming President and CEO of the association. Picard joins NFI from the National Turkey Federation, where she is the Senior Vice President for Policy, Trade and Regulatory Affairs. In January of this year, NFI’s President and CEO John Connelly announced plans to retire in early 2023, prompting a nationwide search. NFI leadership calls Picard a "dynamic leader with expertise in food safety and trade relations." Picard joined the National Turkey Federation in 2011 and previously was the Chief of Staff for USDA's Food Safety and Inspection Service. Before joining FSIS in 2002, Picard served as National Director of Public Relations for Ringling Bros and Barnum and Bailey Circus. She also spent several years lobbying on animal welfare and agriculture issues and will join NFI in mid-December. Incorporated in 1945, the National Fisheries Institute is the largest seafood trade association in the United States. *********************************************************************************** Culver’s Launches Farmer Appreciation Contest Culver's this week launched "To farmers With Love," a farmer appreciation contest. The contest is an opportunity for individuals to nominate a farmer in their life to win a generous prize package as part of Culver's Thank You Farmers Project. Fifteen winning farmers will receive a $500 cash prize, Culver's gift cards and swag. Additionally, to demonstrate Culver's dedication to supporting the future of agriculture, the winning farmers will also receive a $575 donation to their local FFA chapters in their names. Culver's marketing and public relations manager, Alison Demmer, says, "We're thrilled to be able to express our appreciation for these deserving farmers in such a personalized way." Through the Thank You Farmers Project, Culver's has donated over $3.5 million to agricultural education since 2013. Those interested in nominating a farmer can visit www.culvers.com to learn more and complete the nomination form. The contest runs from now through November 15.
| Rural Advocate News | Thursday November 3, 2022 |
Thursday Watch List Markets DTN will be watching initial jobless claims, trade deficit and factory orders. Fed chairman Jerome Powell's comments regarding future rate hikes should be released Thursday. We will also be watching for more developments on the Ukraine export deal and any export sales news, along with any changes in weather. Weather A cold front moving into the middle of the country on Thursday does not have much precipitation with it early Thursday morning. It is expected to get much more active later Thursday as widespread showers and thunderstorms develop from west Texas up through Minnesota. Storms on the southern end from Kansas southward are likely to be more isolated but could be stronger with severe potential possible. It remains very warm ahead of the front with good fieldwork conditions. The showers will be skipping over much of the southwestern Plains as drought continues to hold its grip on next year's winter wheat crop.
| Rural Advocate News | Wednesday November 2, 2022 |
Wednesday Watch List Markets DTN will be watching for the results of the ADP employment report, the Federal Reserve announcements on rates, and Fed chairman Jerome Powell's comments. We will also be watching for more developments on the Ukraine export deal, any export sales news, and any changes in weather. Weather A deep trough is building west of the Rockies on Wednesday. It is inducing a low-pressure area over the Northern Plains and southern Canada, with most of the precipitation staying west of the Rockies or in the Canadian Prairies. Stronger winds are expected in the Plains and Upper Midwest, which will lead to increased wildfire risks for areas that are very dry. It will also lead to warm temperatures for most places east of the Rockies and some high temperatures may be broken in the Upper Midwest.
| Rural Advocate News | Wednesday November 2, 2022 |
Ag Economy Barometer Declines Again Farmer sentiment weakened again in October as the Purdue University-CME Group Ag Economy Barometer fell to a reading of 102, down ten points compared to a month earlier. Both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, declined this month. The Current Conditions Index dipped eight points to a reading of 101, while the Future Expectations Index dropped 11 points to a reading of 102. This month's weakness in farmer sentiment pushes the index back near levels observed in late 2015 and early 2016 when farm income was sharply lower than in the last two years. USDA estimates U.S. inflation-adjusted net farm income averaged across 2021 and 2022 is more than 40 percent above the 2015-2016 average. Producers are concerned about the impact of U.S. interest rate policy on their farms and the ag economy, with over one-third choosing it as the most important policy issue. *********************************************************************************** Meat Sector Releases First-Ever Data Report on Environment The North American Meat Institute released a report Tuesday that sets transparent baselines that will allow the industry to measure progress and verify contributions to global climate goals. With 100 percent of the Meat Institute’s large U.S. members, those with more than 2,000 employees, submitting data, the report covers an estimated 90 percent of meat sold in the United States by volume. Meat Institute President and CEO Julie Anna Potts commented, “98 percent of American households purchase meat, putting our sector undoubtedly at the center of solutions for healthy diets, healthy communities, and a healthy planet for generations to come.” Supporting the organization’s commitment to measure and fill the “protein gap” for needy families by 2025, 78 percent of reporting companies donate money or products to food banks and charities. Meanwhile, 82 percent of reporting facilities are covered by a company commitment to minimize packaging waste, and 71 percent are covered by a company commitment to reduce food waste. *********************************************************************************** Lawmakers Seek Oversight Answers Regarding Climate Smart Commodities Program The Congressional Western Caucus wants information regarding oversight of the Climate-Smart Commodities pilot program. In a letter this week to the Biden administration, the caucus outlined concerns regarding the program, which was created with no direction from Congress. The lawmakers want answers to questions about how the Department of Agriculture created the program, weighed submitted proposals, and intends to ensure the federal funding does not displace private sector investments. The letter states, "We are dismayed by the lack of transparency and congressional consultation throughout the development of this process," further adding, "In no way can $3.5 billion be considered a 'pilot program.'" USDA awarded $2.8 billion in funding from the Commodity Credit Corporation for the pilot program with plans for an expected second tranche that would bring total funding for 2022 to $3.5 billion. Representatives Dan Newhouse, a Washington state Republican, and Andy Harris, a Maryland Republican, led the effort. *********************************************************************************** Iowa Confirms First Fall HPAI Detection The Iowa Department of Agriculture and Land Stewardship confirmed a positive case of highly pathogenic avian influenza in Wright County, Iowa, this week. The virus was found in a commercial layer flock, and this is the first confirmed case of HPAI in Wright County in 2022, located in north-central Iowa. Iowa Secretary of Agriculture Mike Naig says, “We have been preparing for the possibility of additional outbreaks and are working closely with USDA and producers to eradicate this disease from our state.” Commercial and backyard flock owners should prevent contact between their birds and wild birds. Sick birds or unusual deaths among birds should be immediately reported to state or federal officials. If producers suspect signs of HPAI in their flocks, they should contact their veterinarian immediately. According to the U.S. Centers for Disease Control and Prevention, the recent HPAI detections in birds do not present a public health concern. *********************************************************************************** North Carolina, New York, Lead Noninsured Specialty Crop Assistance Applications New data from USDA's Economic Research Service shows specialty crop growers in New York and North Carolina lead the nation in USDA's Noninsured Crop Disaster Assistance Program applications. Operated by the Farm Service Agency, the program covered about 115 million total acres in 2017. Specialty crops, which include fruits and vegetables, tree nuts, dried fruits, and horticulture nursery crops, are often grown in areas where there are suitable soil and weather conditions. In 2020, North Carolina and New York had the program's highest number of specialty crop applications. Each State had more than 5,000 applications. Across the U.S., program applications were made for 147 different specialty crops in 2020. USDA operates various crop insurance and disaster aid programs to help producers. But when sufficient data is not available to create an actuarially sound insurance product, then producers can apply to the USDA, Farm Service Agency's Noninsured Crop Disaster Assistance Program. *********************************************************************************** USDA Rural Development Observes Native American Heritage Month USDA’s Rural Development undersecretary Xochitl (So-CHEEL) Torres Small announced Tuesday USDA is renewing its commitment to strengthen its partnerships with Tribes and Tribal communities. The commitment seeks to ensure Native people have access to the critical infrastructure and economic resources they need to thrive. The announcement is one of many ways USDA is observing Native American Heritage Month. Torres Small says, "We celebrate the countless contributions of American Indians and Alaska Natives and honor the vital influence they have had on the advancement of our nation." USDA is issuing a policy statement that recommits the agency to upholding the agency's Trust responsibility to Tribal communities, respecting Tribal sovereignty by protecting Tribal treaty rights and fostering economic and cultural prosperity. Further, the statement commits to engaging with Tribes through timely and meaningful consultation on USDA’s policies and programs, and reflecting on the shared and complex history between Tribes and the federal government.
| Rural Advocate News | Tuesday November 1, 2022 |
Russia Pulls Out of Black Sea Grain Export Deal Russia resumed its blockade of grain shipments exiting Ukraine on Sunday after announcing the country is pulling out of the grain deal brokered, in part, by the United Nations. The Hagstrom Report says the amount of grain available for global markets and possible price increases are concerns getting raised around the world. U.S. President Joe Biden called the blockade resumption an “outrageous act.” Russia pulled out of the deal because it says Ukraine staged a significant drone attack over the weekend against Russia’s Black Sea Fleet which is off the coast of Crimea (cry-MEE-ah). Ukraine says the attack didn’t happen, and Russia simply mishandled its own weapons. The U.N. and officials from Turkey were trying to convince Russia to bring back the deal it agreed to earlier this year. The European Union’s foreign policy chief says Russia’s decision puts the much-needed exports of grain and fertilizers to address the global food crisis at risk. *********************************************************************************** USDA Trade Mission Underway in East Africa USDA Deputy Secretary Jewell Bronaugh arrived in Nairobi, Kenya, to kick off an agribusiness trade mission to Kenya and Tanzania. The U.S. delegation includes representatives of 32 agribusinesses and farm organizations hoping to establish trade relationships and explore opportunities for American agricultural exports to East Africa. Kenya is the economic, financial, and transportation hub for Central and East Africa. “It’s my great pleasure to lead this trade mission,” Bronaugh says. “Kenya and Tanzania are important and growing markets, and I look forward to strengthening our ties with both nations while expanding opportunities for U.S. agricultural and food product exports.” Trade mission participants will engage directly with potential importers, receive in-depth market briefings, and participate in site visits. Bronaugh also says this is an exciting opportunity for U.S. agribusinesses and state representatives to learn firsthand about the local markets and build strong connections with their future partners in the countries of East Africa. *********************************************************************************** Deere Moving Production from China to Louisiana John Deere announced it is investing $29.8 million to begin manufacturing harvesters in the United States instead of China. Louisiana’s state development agency says the agricultural manufacturer is expanding an already-existing factory in the state and adding another 70 jobs. “This investment by Deere and Company demonstrates not only the strength of Louisiana’s manufacturing sector but the resilience and recovery of the Bayou Region,” says Louisiana’s Governor John Edwards. Deere will produce medium-chassis cotton harvesters to replace the models currently built in China. The new jobs will pay an average salary of $47,472 a year and add to Deere’s existing workforce of 311 employees in the state. “The employees at our Louisiana factory have demonstrated remarkable resiliency and commitment to our customers,” says a Deere spokesman, describing how workers restored operations after Hurricane Ida hit Louisiana last year. Deere says it’s investing in the community, the state, and current staff. *********************************************************************************** Another Railroad Workers Union Votes Against Rail Settlement Another American railroad workers’ union voted against a contract settlement with railroads. Over 300 trade associations covering local, state, and national-level groups wrote to the White House asking for intervention to keep railroads running. The letter to President Biden and officials says, “We’re writing to ask you to help ensure that the tentative agreement you helped broker between railroads and their worker unions is ratified by both sides.” Two unions rejected the agreement, and the groups are concerned that others may follow. The Brotherhood of Railroad Signalmen is the latest union to vote against ratifying the agreement, with 60 percent of its members voting no. The union says, “BRS members spoke loudly and clearly that their contributions are worth more, particularly when it comes to the basic right of time off for illnesses.” The trade groups say if more unions vote no, a strike could shut down the entire rail system. *********************************************************************************** National FFA Officer Team Elected at the 95th Convention The 2022-2023 National FFA Officer team was elected during the final session of the 95th National FFA Convention and Expo in Indianapolis. Students from Illinois, North Carolina, Oklahoma, Pennsylvania, Texas, and Virginia were chosen as the National FFA Officers. Andrew Seibel of Virginia is the new national president. Jessica Herr of Pennsylvania was elected the national secretary. Ryan Williamson of Texas is the western region vice president, and McKenna Clifton of North Carolina is the southern region VP. Karstyn Cantrell of Oklahoma is the central region vice president, and Gracie Murphy of Illinois is the east region VP. These members were selected from 35 candidates vying for the honor. Throughout their year of service to the organization, the officers interact with business and industry leaders, thousands of FFA members and teachers, and many other groups and individuals. The National FFA Organization currently has more than 850,000 student members in almost 9,000 chapters. *********************************************************************************** Farmers Say Cover Crops Are On 40 Percent of Cropland A new USDA survey says cover crops are more popular than first thought. Growers who responded to the survey say they’re using cover crops on 40 percent of their cropland in 2022. Successful Farming says that hints at a sizable increase from the 15.4 million acres of cover crops listed in the 2017 Census of Agriculture. The USDA’s Conservation Practice Adoption Motivations 2021 Report says a large number of farmers, 59 percent, use cover crops on their farms. That’s from a survey of 34,000 farmers that ran from May through September. Farmers say they used cover crops on 40 percent of their cropland. Earlier this month, the Ag Economy Barometer, which surveys large-scale farmers, said 57 percent of respondents used cover crops on at least some of their land, a jump up from 52 percent in 2021. Half of those farmers say they sowed cover crops on 25 percent or less of their land.
| Rural Advocate News | Tuesday November 1, 2022 |
Tuesday Watch List Markets DTN will be watching for the results of the S & P Manufacturing PMI, job openings, and construction spending. Even more importantly, we will be watching for more developments on the Ukraine export deal and any export sales news. Weather Most of the country east of the Rockies will enjoy a day of warmth and dryness, favorable for fieldwork. A system is brewing in the West, though, where widespread showers will fill in across much of the area into Wednesday along with falling temperatures.
| Rural Advocate News | Monday October 31, 2022 |
Mexico Moving Ahead on 2024 GMO Corn Ban Mexico appears to be moving ahead with its plan to ban GMO corn imports by 2024. Reuters says Mexico is considering the possibility of direct agreements with farmers in the U.S., Argentina, and Brazil. Mexico’s deputy agriculture minister says the 2024 ban on GM corn won’t be amended in any way. U.S. yellow corn imports are used primarily for livestock feed in Mexico. Victor Suarez (SWAH-rez) says Mexico will cut its imports of U.S. yellow corn by half when the ban takes effect via increasing domestic production. To fill any remaining gap, Mexico will try to make deals with farmers in other countries to grow non-GMO corn and sell it to Mexico. “There are many alternatives to importing non-GMO yellow corn from the United States,” Suarez says. These moves appear to go back on the promise from Mexico’s ag minister that Mexico wouldn’t limit imports of GMO yellow corn from the U.S. *********************************************************************************** Drought Conditions Pushing Eastward Roughly six of every ten acres of land in the U.S. is in some level of drought. The Weekly Drought Monitor says arid conditions now stretch from the Appalachian Mountains in the east to the Pacific Coast in the western U.S. Conditions grew worse in the Ohio Valley while warm weather combined with below-normal precipitation to further dry the Midwest. The University of Nebraska’s National Drought Mitigation Center says the extent of the dry conditions is on par with 2012 as drought expanded across more than half of the states, particularly in the Midwest and Southeast. Drought also deepened in the Central Plains, where stock ponds for cattle remain low to nonexistent. Pastures are providing marginal feed, and most producers have to supplement their cattle feed. While the growing season for field crops is done, drought still affects the winter wheat crop, which makes up most of America’s wheat production. *********************************************************************************** U.S. Diesel Supplies are Shrinking Rapidly America has a shortage of diesel supplies on hand and it’s putting pressure on suppliers to get more into the fuel supply. The Start Magazine says a shortage is spreading in the eastern United States and has prompted at least one supplier to initiate emergency protocols. Mansfield Energy is a fuel supplier that says conditions are rapidly devolving, so they require a 72-hour notice for deliveries to secure fuel and freight. Diesel is the fuel that trucks, trains, and ships fill their tanks with to move goods around the country and across the globe. Supplies are tight partly because Russian diesel imports are banned in the U.S. Andrew Hunter, a senior economist with Capital Economics, says, “U.S. refining capacity has fallen over the past few years, which doesn’t help.” Diesel prices hit a record high of $5.81 per gallon in June, and prices could go higher if the winter is colder than expected. *********************************************************************************** Over 75 Percent of Soybean, Cotton, and Corn Acres are Genetically Engineered USDA’s Economic Research Service says genetically engineered seeds were commercially introduced in the U.S. for major field crops in 1996, and adoption rates increased rapidly. By 2008, more than 50 percent of U.S. corn, cotton, and soybean acres were planted with genetically engineered seeds. The total acres with GE seeds has grown even further, with now more than 90 percent of U.S. corn, upland cotton, and soybeans produced using GE varieties. Genetically engineered crops are broadly classified as herbicide-tolerant (HT), insect-resistant (Bt), or a combination of the two. While other traits like virus and fungus resistance, drought tolerance, and enhanced protein oil or vitamin content have been developed, HT and Bt traits are the most commonly used in U.S. crop production. Herbicide-tolerant seeds are also widely used in alfalfa, canola, and sugar beet production, but most of the GE acres are planted to the three major field crops: corn, cotton, and soybeans. *********************************************************************************** Biodiesel Plays a Big Role in California’s GHG Drop California released its Greenhouse Gas Inventory Report for 2020 which showed a 16 percent decrease in transportation carbon emissions. Clean Fuels Alliance America says that success was due in part to increasing the use of biodiesel and renewable diesel. The state’s analysis shows the percentage of biodiesel and renewable diesel in California’s fuel supply grew from 0.4 percent in 2011 to almost 21 percent in 2020 through the Low Carbon Fuel Standard. California Air Resources Board data says biodiesel and renewable diesel generated 44 percent of the LCFS credits in 2020. “As California works to continue reducing carbon emissions, it’s relying on increased production, import, and blending of biodiesel and renewable diesel,” says Clean Fuels’ CEO Donnell Rehagen (REE-hay-gen). Without biodiesel and renewable diesel, California’s tailpipe fossil CO2 would have been 15 million metric tons higher in 2020. The reduction equals taking 3.2 million cars off the road in 2020. *********************************************************************************** NPPC Promotes New VP of Domestic Policy The National Pork Producers Council says Kelly Cushman is its new vice president of domestic policy. In the newly-created position, Cushman will oversee U.S. government engagement, advocacy, and lobbying efforts for the U.S. pork industry. “Kelly comes to NPPC with a proven track record as an effective leader and political strategist, developing and executing government affairs outreach programs,” says NPPC CEO Bryan Humphreys. Cushman is a public affairs and communications professional with over 25 years of experience. She has a blended background of political, government agency, and corporate experience. “I’m excited to support America’s pig farmers who prioritize the health and well-being of their animals to provide high-quality and affordable products,” Cushman says. “I look forward to expanding and integrating NPPC’s government affairs engagement in Washington, D.C., and across the country. Cushman has a bachelor’s degree in biological sciences from Clemson and a master’s in environmental science and policy from Johns Hopkins.
| Rural Advocate News | Monday October 31, 2022 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and any news, especially from Ukraine. USDA's weekly report of export inspections at 10 a.m. CDT will give another indication of how soybeans are moving on the river. USDA's Crop Progress report at 3 p.m. will be watched for row crop harvest progress and winter wheat emergence. Financial traders are apt to be cautious with nearly everyone expecting another rate hike Wednesday. Weather Mild to very warm temperatures and mostly dry conditions for most areas on Monday will make for some good trick-or-treating weather. A few showers are going through the eastern Midwest and Southeast on Monday, but the coverage is rather low. Another system is moving into the Pacific Northwest, however, and will be the start of a battle in the middle of the country later this week.
| Rural Advocate News | Friday October 28, 2022 |
Survey Shows Farmer Concerns About Carbon Markets A new report from Farm Journal shows farmer perspectives and concerns on pathways and barriers to participating in carbon markets. A majority of farmers surveyed revealed significant concerns about overcoming technical and financial roadblocks to having success in the carbon markets. Producers worry that the benefits won’t be worth the cost, ongoing compliance regulations will be burdensome and that existing ag practices they already have in place on their operations won’t be fairly compensated. Farm Journal says the initial findings show that even the most “carbon-curious” farmers are saying that participating in current market conditions would require too much time, effort, and resources without fair returns on those investments. Farmers are also concerned about their data and whether it will get handled appropriately or will be difficult to collect. After several years, 97 percent of farmers aren’t ready to participate in carbon markets, but 93 percent are aware they exist. *********************************************************************************** USDA Providing $759 Million to Improve Rural Broadband Access Ag Secretary Tom Vilsack says his agency is providing $759 million to improve internet access for people living and working in 24 states, Puerto Rico, Guam, and Palau. The investments include funding from the Bipartisan Infrastructure Law that provides $65 billion to help expand reliable, affordable, high-speed internet access to communities across the United States. “People living in rural towns across the nation need high-speed internet to run their businesses, go to school, and connect with their loved ones,” says Vilsack. “That’s how you grow the economy, not just for rural areas, but across the nation.” The $759 million in loans and grants comes from the third round of funding under the ReConnect Program. USDA is issuing a total of 49 awards in states like Alabama, Arizona, Kansas, Missouri, South Dakota, and many others. So far this year, USDA has announced $1.6 billion from the third round of ReConnect funding. *********************************************************************************** Bunge: Strong Demand Ahead for Soybean Oil The U.S. soybean sector will continue to see support from rising global demand for biofuels. Oil giant Bunge says that support will stay in place for “some time to come.” The company’s chief financial officer says the demand for soybean oil is strong from both the food and energy-producing sectors. Industry Update Dot Com says Bunge also sees unusually high interest from buyers wanting to lock in their prices beyond the next quarter. “We’re very deliberate about price,” says Bunge CEO John Nappi (nap-PEE). “But the demand is there and continuing to grow steadily. And we haven’t seen any decline or lack of interest from either the energy producers or the food industry side of the equation at this point.” SP Global says demand for soybean oil from the U.S. biofuel industry has been rising quickly since 2020 as processors are more confident about the government’s commitment to an energy transition. *********************************************************************************** Poll Finds Rural Voters Pessimistic About the Future A Daily Yonder poll of rural Americans shows they’re worried about the present, feeling pessimism about the future, and planning to vote the way they did in recent elections. The poll was commissioned by the Center for Rural Strategies and found that rural voters in highly-contested states hold negative views about the economy. For example, three-quarters of the respondents say the economy isn’t working for them. Just over half say they don’t expect their financial situations to get better in the next year. A little over three-quarters of the respondents say they think things will get worse, not better, for the next generation of Americans. The Daily Yonder survey also found nearly half of rural voters say the rising cost of living is one of their biggest concerns. The second-largest concern is government dysfunction. Other top issues included jobs and the economy, social security, rising crime, health care, and the rising cost of food and gas. *********************************************************************************** Inland Waterway System Still Struggling with Drought The conditions along America’s inland waterway system remain concerning. Farmers are harvesting an overall strong crop, but the inland waterway system they use to ship commodities doesn’t have the ability to accommodate large amounts of new grains. It’s especially hard on the soybean industry because September through February accounts for 80 percent of U.S. soybean exports. Because over half of America’s soybeans are exported, barge transportation is essential. American Commercial Barge Lines says depth restrictions of no greater than nine feet have been instituted on the Lower Mississippi River, an almost 30 percent decrease. Barges are often loaded to 11-12 feet this time of year on the Mississippi River south of St. Louis. For every one foot of decreased water depth, that means 5,000 fewer bushels are loaded onto each barge. A maximum of 25 barges can be connected on the lower Mississippi compared to 30-40 barges in typical years. *********************************************************************************** USDA Launches Loan Assistant Tool to Enhance Customer Service The USDA has launched a new online tool to help farmers and ranchers better navigate the farm loan application process. The now uniform application process will help make sure all farm loan applicants receive equal support and have a consistent customer service experience with USDA’s Farm Service Agency, regardless of individual circumstances. “USDA recognizes that more must be done to ensure all customers have equal access to our programs and services,” says FSA Administrator Zach Ducheneaux. “This tool will help loan applicants better understand the application process and gather the needed documents before the process even begins.” USDA experiences a high rate of incomplete or withdrawn applications, due in part to a challenging and lengthy paper-based application process. The new Loan Assistance Tool is available 24-7 and gives customers an online step-by-step guide that supplements the support applicants receive in person at an FSA office. For more information, go to farmers.gov.
| Rural Advocate News | Friday October 28, 2022 |
Friday Watch List Markets The Labor Department's third-quarter employment cost index will be out at 7:30 a.m. CDT Friday, the same time as a report on U.S. personal incomes and consumer spending for September. The University of Michigan's consumer sentiment index for October is due out at 9 a.m., the same time as a U.S. index of pending home sales for September. Traders will keep an eye on the latest weather forecasts and on outside markets ahead of a likely rate hike on Wednesday, November 2. Weather A small storm system has moved into Texas where rains have spread into Oklahoma. The system will be a slow-mover with showers possibly getting into the Delta Friday night, but could wait until Saturday in some places. Some heavier rain will be possible as further drought reduction looks likely in this small area. But the rest of the country will largely be dry today with near- to above-normal temperatures, favoring harvest and other fieldwork.
| Rural Advocate News | Thursday October 27, 2022 |
Bronaugh To Lead East Africa Agribusiness Trade Mission Deputy Agriculture Secretary Jewel Bronaugh will lead a trade mission to Nairobi, Kenya, and Zanzibar, Tanzania, from October 31 through November 4. Representatives from 32 agribusiness and farm organizations will join Bronaugh on the trip. She says, "This trade mission will provide firsthand knowledge of market conditions and opportunities in East Africa and expand awareness about U.S. agricultural and food products in the region." Both Nairobi, Kenya and Zanzibar, Tanzania, serve as strategic ports in East Africa, attracting many U.S. exporters and investors. Last year, the United States exported more than $60 million worth of agriculture, fish, and forestry products to Kenya, and $6.9 million worth of agricultural products to Tanzania. During the week-long trade mission, participants will meet with potential importers, processors, and distributors from Kenya and Tanzania, as well as other East African nations. National agribusiness groups represented include the U.S. Grains Council, U.S. Meat Export Federation, and the U.S. Soybean Export Council, among others. *********************************************************************************** R-CALF Makes Post-Election Push for M-COOL R-CALF USA, the Ranchers Cattlemen Action Legal Fund United Stockgrowers of America, is making a push for Congress to consider mandatory country-of-origin labeling of beef. R-CALF is encouraging its members and others to show their support to lawmakers for the American Beef Labeling Act. The bill was introduced by Republican Senators John Thune and Mike Rounds, alongside Democrats Jon Tester and Cory Booker last month. The legislation would require the U.S. Trade Representative, in consultation with the U.S. Secretary of Agriculture, to develop a World Trade Organization-compliant means of reinstating MCOOL for beef within one year of enactment. USTR would have six months to develop a reinstatement plan, followed by a six-month implementation window. If USTR fails to reinstate MCOOL for beef within one year of enactment, it would automatically be reinstated for beef only. R-CALF points to a Morning Consult poll that claims 86 percent of U.S. voters support the bill. *********************************************************************************** Illinois Leads U.S. Pumpkin Production Pumpkins are on full display across the United States as part of many fall traditions. The production of pumpkins, from classic orange Howdens to new varieties like Cinderella, is widely dispersed throughout the United States, with all states producing some pumpkins. However, USDA’s Economic Research Service reported Wednesday that about 40 percent of pumpkin acres are harvested in only six states. Illinois is consistently the nation's largest pumpkin producer by acreage and weight. In 2021, Illinois produced 652 million pounds, more than a quarter of total U.S. pumpkin production and more than the next five states combined. Unlike all other States, most of Illinois' pumpkins are used for pie filling and processed for other food uses. Pumpkins from other states are primarily intended for decorative, or carving, use. In 2021, Indiana produced 181 million pounds of pumpkins, California grew 157 million pounds, Texas grew 108 million pounds, Michigan grew 89 million pounds, and Virginia grew 82 million pounds. *********************************************************************************** Research: Rainfall Declines Increase Food Insecurity Research by Penn State University published in ScienceDaily shows food insecurity increases when rainfall is below normal. The researchers focused on food insecurity in Tanzania, and found moving from a year with typical rainfall to a particularly dry year was associated with a 13-percentage-point increase in the risk of being food insecure. Tanzania has a high prevalence of food insecurity and is highly dependent on rain to grow its maize crops. Penn State assistant professor Heather Randell says, "Potential interventions could include providing drought-tolerant maize, increasing access to agricultural extension services, scaling up agricultural index insurance, improving uptake of soil and water conservation practices, and providing cash transfers based on drought early warning systems." Randell adds the findings also could apply to other low- and middle-income countries, especially those heavily dependent on maize production. The researchers say food insecurity affected about two billion people, or 26 percent of the global population, in 2019. *********************************************************************************** Clean School Bus Program Funding Primarily Supports Electric Busses The nearly $1 billion investment from the Environmental Protection Agency’s Clean School Bus Program announced Wednesday is largely for electric busses. Through a lottery system, the agency has selected 389 applications totaling $913 million to support the purchase of 2,463 buses, 95 percent of which will be electric. EPA will distribute awards to school districts in all 50 states and Washington D.C., along with several federally recognized Tribes and U.S. territories. School districts identified as priority areas serving low-income, rural, and, or Tribal students make up 99 percent of the projects that were selected. More applications are under review, and the agency plans to select more to reach the full $965 million in the coming weeks. Funding for the effort comes from the Bipartisan Infrastructure law to “build a healthier future, reduce climate pollution, and ensure the clean, breathable air that all our children deserve,” according to EPA Administrator Michael Regan. *********************************************************************************** Oscar Mayer: Avoid Bacon on World Vegan Day Oscar Mayer is calling on bacon enthusiasts to abstain from bacon delight of any kind on World Vegan Day, November 1. The company says, "Deliciously tempting bacon, smoked with real wood smoke for 12 hours, can be tough for those who wish to give up meat." According to a recent survey, more than half of vegans have abandoned their diet for bacon, making it the ultimate "gateway meat." Research shows that 63 percent of vegans wish they could eat bacon, and 56 percent admit bacon's delicious taste temps them. To show the brand's dedication on November 1, Oscar Mayer will reduce temptation by removing all bacon from paid media, and censoring, blurring and removing bacon from its social media. Oscar Mayer’s new campaign encourages fans to “BacOFF,” on social media, by pledging to give up bacon on World Vegan Day. Those who choose to do so could win a lifetime supply of bacon.
| Rural Advocate News | Thursday October 27, 2022 |
Thursday Watch List Markets Thursday promises to be a busy morning for new reports. USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, September durable goods and an update of the U.S. Drought Monitor. The U.S. Commerce Department will also issue its first estimate of third-quarter GDP at 7:30 a.m. and many are expecting positive growth. Meanwhile, the European Central Bank is expected to raise its interest rate Thursday morning and the Energy Department's weekly report of natural gas sales is due out at 9:30 a.m. Weather A system is exiting the Central Rockies into the Southern Plains on Thursday. Some scattered showers have been falling over Nebraska and South Dakota from the overnight but will spread south into Oklahoma and Texas later today. There is a small risk for severe weather over Texas, but mostly should be just rain. Other areas of the country will be dry with near-normal temperatures.
| Rural Advocate News | Wednesday October 26, 2022 |
NMPF Unanimously Endorses Marketing Order Modernization Plan National Milk Producers Federation leadership Tuesday unanimously endorsed a proposal to modernize the Federal Milk Marketing Order milk-pricing system. The plan includes returns to the "higher of" Class I mover, discontinuing including barrel cheese in the protein component price formula. It extends the current 30-day reporting limit to 45 days on forward-priced sales of Nonfat Dry Milk and dry whey to capture more export sales in the USDA product price reporting. Additionally, the plan updates milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas. The plan develops a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years, and updates dairy product manufacturing allowances contained in the USDA milk price formulas. Any final proposal will be reviewed by the organization before it’s submitted to USDA to be considered for a federal order hearing. *********************************************************************************** Tyson Foods, Washington State Settle Price Fixing Lawsuit Washington state Attorney General Bob Ferguson announced this week the largest chicken producer in the nation, Tyson Foods, will pay $10.5 million because of a lawsuit over price-fixing on chicken products. The announcement is the third and largest resolution in Ferguson’s lawsuit against 19 broiler chicken producers. The claims against the remaining 16 companies continue. The conspiracy harmed an estimated 90 percent of Washington state residents, or approximately seven million individuals. Consequently, the scheme impacted virtually everyone who consumes chicken products. Tyson Foods is the largest chicken producer in the U.S., with approximately 20 percent of the national market share for broiler chickens. The Washington Attorney General’s Office asserts Tyson Foods and 18 other chicken producers drove up the price of chicken since at least 2008, causing consumers to overpay by millions of dollars. Two other states, Alaska and New Mexico, have similar antitrust cases against national chicken producers. *********************************************************************************** Legislation Introduced to Support Farmers Affected by PFAS In a bipartisan, bicameral effort to provide vital assistance to farmers affected by PFAS, lawmakers recently introduced the Relief for Farmers Hit with PFAS Act. Led by Maine Republican Senator Susan Collins, the legislation would authorize grants for states to provide financial assistance to affected farmers. PFAS are man-made "forever" chemicals used in industry and consumer products and can lead to serious health effects. PFAS contamination has prevented some farms from selling their products, creating financial hardship for many family farmers. Collins says, "USDA needs to step up and provide support to farmers, who at no fault of their own, are at risk of losing their livelihoods." Specifically, the funds would increase PFAS testing for soil and water sources, provide relocation of a commercial farm if the land is no longer viable, and create research on soil and water remediation systems, and the viability of those systems for farms. *********************************************************************************** USDA: Conservation Tillage Increasing The share of acreage for major cash crops—wheat, corn, soybeans, and cotton—that are planted using conservation tillage has increased over the past two decades in the United States. USDA’s Economic Research Service reported the data Tuesday. Farmers reported employing conservation tillage on the majority of acres of wheat at 68 percent, 76 percent of corn acres, and 74 percent of soybeans. Conservation tillage is less common on cotton fields at 43 percent of acres. Conservation tillage, which includes no-till and mulch till, reduces soil disturbance and preserves more crop residue relative to conventional tillage, in which a plow or other implement turns over most of the soil before planting. Additionally, no-till production, a type of conservation tillage in which farmers plant directly into remaining crop residue without tilling, has increased substantially for wheat and corn over the past two decades. Finally, mulch till has trended upward on each crop except for corn over the past two decades. *********************************************************************************** Florida Ag Department Releases Hurricane Ian Damage Assessment The Florida Department of Agriculture this week released a preliminary damage assessment for agriculture following Hurricane Ian. The assessment considered that losses to agriculture production and infrastructure are estimated to be between $1.1 billion and $ 1.8 billion. Florida Agriculture Commissioner Nikki Fried says, "While today's assessment is a preliminary snapshot of the losses to Florida agriculture, it is a critical first step in the process of securing federal disaster aid for our hard-working producers." The report estimated citrus damages between $400 million and $675 million, other fruits and vegetables between $153 million and $230 million, and field crops between $86 million and $160 million. Horticulture damages are estimated up to $297 million, livestock at $492 million and forestry at $32 million. Hurricane Ian made landfall on September 28 near Fort Myers and Cape Coral as a category-four hurricane. The report says Ian is among the strongest hurricanes to make direct landfall in the United States. *********************************************************************************** Applications Sought for Renewed Effort to Assist Farmers American Farmland Trust will accept applications starting November 1 to help farmers nationwide improve farm viability, access, transfer or permanently protect farmland or adopt regenerative agricultural practices. The last day to submit applications is November 14. AFT’s Brighter Future Fund provides grants of up to $5,000 per project. A project may involve one or more individual farmers or farm families, and projects will be awarded on a one-per-farm basis. In 2022, the fund will uplift, support, and amplify historically underserved farmers. AFT Vice President of Programs David Haight says, “The Brighter Future Fund makes small investments that have big impacts with participating farmers – particularly those who face barriers in accessing other types of support.” The Brighter Future Fund was launched in 2020 to help farmers launch, grow, and sustain farms in the face of forces impacting the food and agricultural system. Farmers should submit a completed electronic Brighter Future Fund Application to AFT at farmland.org to apply.
| Rural Advocate News | Wednesday October 26, 2022 |
Wednesday Watch List Markets A report on U.S. new home sales in September is due out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. The Bank of Canada is expected to increase its interest rate by 0.75% to 4.0% Wednesday, followed by a rate hike in Europe on Thursday. Traders will continue to watch the latest weather forecasts and news from abroad, especially Ukraine. Weather As a storm system finally pushes east on Wednesday, quieter weather conditions are expected for most areas east of the Rockies. To the west, a system continues to move through the Rockies, setting up another storm for the late-week period across southern areas.
| Rural Advocate News | Tuesday October 25, 2022 |
NCGA Calls on USTR to Act on Mexico’s Pending Decree on Corn Imports Calls from corn grower leaders are growing louder for the United States Trade Representative to intervene in a trade dispute with Mexico over corn imports. The response from corn growers comes as Mexican President Andrés Manuel López Obrador’s promises to enact a decree that would end imports of corn grown using biotech and certain herbicides by 2024. Biotech corn makes up over 90 percent of U.S. corn crops. An opinion piece by National Corn Growers Association President Tom Haag was published over the weekend in The Hill, a newspaper widely read by Congress and other Washington decision-makers. The editorial calls on USTR to file a settlement dispute under the U.S.-Mexico-Canada Agreement over the matter. Haag says, "If the decree is enacted, the negative impact will be felt by farmers in the U.S. and by the people of Mexico." NCGA has been at the forefront of this issue, and says a U.S.-Mexico-Canada Agreement dispute settlement would allow for extensive debate and mediation. *********************************************************************************** USTR, USDA to Assist Seasonal Produce Industry The Office of the United States Trade Representative will pursue avenues to assist the Southeast seasonal produce industry in coordination with the United States Department of Agriculture. The announcement comes after members of Congress requested an examination of certain issues in a September 8, 2022, Section 301 petition. The 301 statute requires that USTR make a decision on whether to move forward with an investigation within 45 days. The statute also includes a private-sector advisory panel as a specific response to export targeting. Although USTR could not conclude in the 45-day statutory period that a formal 301 investigation would be effective and is not opening an investigation at this time, USTR is moving forward with an advisory panel. USTR and USDA will work with the petitioners and producers to examine the issues raised in the petition and to consider any further actions that may be appropriate as a result. *********************************************************************************** Bill Seeks Excise Tax on Foreign Water-Intensive Crops in the U.S. Legislation introduced last week seeks an excise tax on the sale and export of water-intensive crops grown in the U.S. by foreign governments. Arizona Representative Ruben Gallego introduced the Water Protection Act of 2022, as Arizona and other states face prolonged drought. Gallego says, "While Arizona experiences the driest conditions in centuries, our water is being given away in a sweetheart deal with Saudi Arabia." The Democrat adds, "Arizona's aquifers are meant to serve Arizonans, and this bill will make that happen." The excise tax would be imposed at 300 percent, reflecting the unjustifiable disparity in land lease rates between domestic and foreign producers in Arizona. Arizona is leasing farmland to Fondomonte, a Saudi company which uses Arizona groundwater to grow alfalfa exported to feed cows in the Middle East. The state reports that the company uses enough water annually to supply 54,000 homes, at an estimated cost to the state of more than $3 million a year. *********************************************************************************** EWG: Climate Change Increases Crop Insurance Costs A new Environmental Working Group analysis found the majority of Midwestern counties with increased precipitation between 2001 and 2020 also had growing crop insurance costs. The report alleges the increased crop insurance costs were due to wetter weather linked to climate change. Between 2001 and 2020, farmers in the eight Midwest states received almost $14.5 billion in crop insurance indemnity payments for reduced crop yields or revenue due to excess moisture and precipitation. In all, 661 counties got a crop insurance indemnity payment for excess moisture at some point during that period, adding up to $12.9 billion. EWG claims the Crop Insurance Program undermines the adoption of conservation practices like cover crops that can help farmers adapt to the effects of climate change, such as extreme precipitation events that are expected to continue occurring more frequently. The organization is using the study in a call to make several reforms to the structure of crop insurance. *********************************************************************************** 2012 Nutrition Standards Change Increased Fruits and Vegetables in School Meals A 2012 change in school meal nutrition standards drove changes in the type of foods schools purchased. USDA's Economic Research Service released data Monday that shows following the change in standards, schools obtained more fruits and vegetables through USDA Foods and especially through USDA’s Department of Defense Fresh Fruit and Vegetable Program. While there was no clear change in the types of foods chosen from 2006 to 2012, the percent of USDA Foods entitlement funds used for purchasing fruits and vegetables from DoD Fresh rose sharply from 6.7 percent of total USDA Foods in 2012 to 15 percent in 2017. Fruit obtained through AMS—mainly canned and frozen—rose from 9.4 percent of total USDA Foods spending in 2012 to 15.4 percent in 2017. Vegetables obtained from USDA's AMS slightly rose from 2012 to 2017. As the spending on fruits and vegetables increased, the percentage spent on meat, poultry, and cheese dropped from nearly 74 percent in 2012 to 61 percent in 2017. *********************************************************************************** Gas Prices Down Again, Diesel Higher The nation's average gas price declined for the second straight week, falling 9.3 cents from a week ago to $3.77 per gallon. The national average is up 10.2 cents from a month ago and 41.2 cents per gallon higher than a year ago. The national average diesel price increased 4.0 cents in the last week and stands at $5.30 per gallon. GasBuddy's Patrick De Haan says, “While gasoline prices have seen a large drop, diesel prices have been somewhat mixed, with prices heading higher in the Northeast as inventories drop to extremely tight levels ahead of the heating oil season.” Rising risk of economic downturn, weak Chinese imports and a stronger U.S. dollar were factors pushing oil prices lower in the last week. That comes as OPEC+’s recently decided to cut oil production. De Haan adds that the decline in gasoline prices is seasonal and should continue into the fall, and is unrelated to the coming election.
| Rural Advocate News | Tuesday October 25, 2022 |
Tuesday Watch List Markets An index of U.S. consumer confidence for October is due out at 9 a.m. CDT Tuesday, the only report of the day. Traders will continue to watch the latest weather forecasts and any reports from the Mississippi River. Outside market news will also get market attention with the Federal Reserve expected to raise interest rates again next week. Weather A cold front saw a low-pressure center form along it across Texas Monday and that low and front will continue northeast through the country Tuesday. Areas of rain and thunderstorms are exiting the Plains but will continue for the Delta, Southeast, and Midwest. Rain will disrupt the remaining harvest and there is a risk of severe storms across the Gulf Coast states. Cooler, drier air is filling in behind the front while another system is moving into the Pacific Northwest.
| Rural Advocate News | Monday October 24, 2022 |
Farm Financing Demand Edges Higher Strong agricultural prices continue to support the farm economy, but the rapid rise in production expenses could pressure profit margins. That’s pushing the demand for farm financing higher. Larger-sized operating loans are continuing to boost farm lending activity. The Kansas City Fed says the volume of non-real estate farm loans increased by more than 10 percent for the third-consecutive quarter. Operating loans accounted for nearly all the growth, driven by an almost 25 percent increase in the average loan size. Besides a continued growth in lending, interest rates rose sharply and pushed financing expenses to their highest level since 2019. Prices of most major commodities remained elevated alongside favorable market conditions and supported a positive outlook for farm finances through the end of this year. Uncertain demand for farm products in the coming year has led to more volatility, while drought continues to impact large parts of U.S. farm country. *********************************************************************************** NOAA Winter Weather Outlook Shows More Drought Ahead The National Oceanic and Atmospheric Administration released its U.S. Winter Outlook. Beginning in December and running through February 2023, NOAA predicts drier-than-average conditions in the South with wetter-than-average conditions in the Ohio Valley, Great Lakes, northern Rockies, and the Pacific Northwest. The agency says widespread extreme drought continues in much of the West, the Great Basin, and the central-to-southern Great Plains. Drought will impact the middle and lower Mississippi Valley this winter. Drought will also develop in the South-Central and Southeastern U.S., while drought conditions should improve across the Northwest U.S. in the months ahead. This year, La Niña returns for a third-consecutive winter, which will drive warmer-than-normal temps in the Southwest, along the Gulf Coast, and through the Eastern Seaboard. NOAA says drought conditions are now present in 59 percent of the country, and parts of the Western U.S. and southern Great Plains will get hit hardest this winter. *********************************************************************************** U.S. Grain Exports Hit Near-Record Total in 2021-2022 U.S. grains in all forms (GIAF) exports for the 2021-2022 marketing year topped 122 million metric tons, the second-highest total on record. That total trails the 129 million metric tons in 2020-2021. The U.S. Grains Council analyzed USDA data to find near-record exports of ethanol helped offset losses from corn, barley, and barley products. Mexico is the top GIAF destination. Record exports of ethanol, corn, DDGS, and pork and pork products, combined with fewer imports from China, made Mexico the biggest U.S. market in 2021-2022. Mexico imported over 27 million metric tons worth $11 billion. China was the second-largest export market for U.S. GIAF, with exports totaling 26 million metric tons worth more than $11 billion. Canada was in third place, taking in U.S. GIAF totaling more than 13 million metric tons worth $6 billion. In the current 2022-2023 marketing year, the U.S. Grains Council continues promoting U.S. grains around the world. *********************************************************************************** Company Developing AI to Accelerate Global Soil Restoration Biome Makers, a global ag tech leader in soil health analysis, received a $1.6 million grant from the European Union. The grant will help answer the need for strong solutions around soil biology in agriculture. The EU recognizes the importance of BeCrop®, the company’s soil intelligence technology, and the environmental and socioeconomic impact it has on farmers. The grant will help fast-track the development of BeCrop® AI and machine learning. That will help accelerate Biome Makers’ global mission of recovering soil health. The AI currently has the world’s largest database of taxonomic references and has analyzed more than 415,000 hectares of soil. BeCrop® technology decodes soil biology to help farmers improve food production while improving the sustainability of their farmland. The industry will no longer have to develop agricultural products or apply inputs without verifying their impact. BeCrop® is the first step to making that happen. Companies like Syngenta already utilize the AI. *********************************************************************************** New Zealand is the Latest Country to Tax Cow Burps New Zealand farmers recently gathered in towns and cities across the country to protest against the government’s plan to tax “agricultural emissions.” Reuters says the government confirmed plans to price agricultural gases and biogenic methane, which it says come from cow and sheep burps. Farmers drove tractors and carried signs protesting the proposed plan. Farm groups wonder how the proposal accounts for on-farm forestry and what can offset such emissions. They also worry about how the emissions will be priced and how the program will be governed. One of the protestors told state-owned Radio New Zealand that they aren’t necessarily wanting exemptions. The farmers want to work out how it's going to be best for them and the country. New Zealand’s prime minister told reporters they wanted feedback from the agricultural community, and the plan is in a consultation phase. The government wants to work with producers to find a solution. *********************************************************************************** Export Sales of Corn and Beans Surge Higher Sales of corn and soybeans to overseas buyers jumped week-to-week, while wheat sales declined during the week ending on October 13. USDA data says corn sales hit 408,300 metric tons, more than double the 200,000 tons sold a week earlier. Mexico was the big buyer at 183,700 metric tons, followed by Japan’s 77,600 tons. Soybean sales surged to 2.34 million metric tons, a significant jump over the 724,000 metric tons sold a week earlier. China swooped in to buy 1.98 million metric tons, far and away the top soybean buyer, with the Netherlands in second with 82,800 tons. The soybean total could have been higher, but the United Kingdom canceled a sale that week of 60,000 tons. Wheat sales dropped to 163,100 metric tons, down from almost 212,000 the previous week. Mexico was the top wheat buyer at 93,500 metric tons. USDA says Italy canceled wheat sales of 60,000 tons.
| Rural Advocate News | Monday October 24, 2022 |
Monday Watch List Markets Back from the weekend, traders will pore over the latest weather forecasts, keep up on the interest rate debate and check the latest news from the Mississippi River and Ukraine. USDA's weekly export inspections report at 10 a.m. CDT gets extra attention these days as a new gauge of river problems. USDA's monthly Cold Storage report is set for 2 p.m., followed by harvest progress and winter wheat planting updates in the Crop Progress report at 3 p.m. Weather A strong fall storm system is wound up in eastern North Dakota early Monday morning and heading northeast toward Hudson Bay. Scattered showers across the Northern Plains are a mix of rain and accumulating snows. The cold front to the system extends south through the Plains. Across the south, the system is ingesting the remnants of hurricane Roslyn, which is helping increase precipitation across Texas and Oklahoma. The heavier rain will spread northeast into the central Midwest throughout the day while a low pressure center will develop on the front across Texas later in the day, a feature that will move northeast through the Midwest later this week. Strong winds that have been felt across the middle of the country over the weekend are winding down throughout the day. Temperatures behind the front are dropping significantly from the heat seen over the weekend.
| Rural Advocate News | Friday October 21, 2022 |
Enrollment is Open for ARC, PLC Programs Ag producers can now change their 2023 crop year elections and enroll in the Agricultural Risk Coverage and Price Loss Coverage Programs for 2023. Signup for the two key safety net programs began Monday, and the enrollment deadline is March 15, 2023. Producers can choose coverage and enroll in ARC-County or PLC, which provides crop-by-crop protection, or ARC-Individual, which protects the entire farm. Although election changes for 2023 are optional, producers must enroll through a signed contract each year. Also, if a producer has a multi-year contract on the farm and makes an election change for 2023, they must sign a new contract. If producers don’t submit their election by the March 15 deadline, their elections remain the same as their 2022 election for crops on the farm. “It’s that time of year for producers to consider all their risk management options,” says Farm Service Agency Administrator Zach Ducheneaux. *********************************************************************************** October Fed Beige Book Updates Ag Economy Conditions The Federal Reserve Board released its October 2022 Beige Book, which provides as update on current conditions in the agricultural economy. Ag conditions in the sixth district near Atlanta were mixed as cotton growers noted softening demand, while row crop production remained sold. In Chicago’s seventh district, income expectations for producers were unchanged as most operations should be profitable despite rising input costs. Production forecasts in the eighth district of St. Louis declined for corn, rice, and soybeans. In Minneapolis’s eighth district, financial conditions remained strong even as higher input costs bite into profit margins. The tenth district of Kansas City shows strong financial conditions despite adverse developments tied to drought and input costs. The eleventh district of Dallas showed significant rainfall greatly improved drought conditions across much of the district, though it began to dry out again after the rainfall. Many eleventh-district areas had little-to-no crop production because of the drought. *********************************************************************************** Inflation Boosting Prices of Organic Products Ongoing inflation resulted in higher retail prices of organic fresh produce during the third quarter of this year. The Organic Produce Network says that generated a 4.1 percent increase in total organic dollars but also contributed to a decline of 4.5 percent in organic volume compared to the same period last year. Overall, organic fresh produce pricing per pound increased by 8.9 percent during the third quarter compared to the same time in 2021. Sales during the third quarter topped $2.4 billion this year. At the same time, conventional produce’s average price per pound increased by more than 10 percent, with total sales of almost $18 billion. Tomatoes were the bright spot for organic sales in the third quarter, thanks to a 19 percent increase in volume and a hefty 30 percent increase in dollars. Fourteen of the top categories posted year-over-year increases in dollars, led by potatoes, onions, and peaches. *********************************************************************************** EDF Report says Crop Yields will Slow by 2030 The Environmental Defense Fund says extreme heat, changing rainfall, and other climate change impacts will make it harder to grow U.S. staple crops as soon as 2030. The group says future food supplies and farmer livelihoods will be at stake without adaptation efforts getting underway immediately. The EDF report uses an ensemble of 20 computer models to analyze how climate change will alter the yields of staple crops in Iowa, Minnesota, and Kansas by 2030 and 2050. By 2030, nearly all counties in Iowa will see corn yields more than five percent lower than they would have been without climate change. More than half will see declines of 10 percent or more. Over half of Minnesota’s counties will see soybean yields drop by over five percent. Seventeen percent will see drops of more than 10 percent. Eight percent of Kansas counties will see winter wheat yields drop by over five percent by 2030. *********************************************************************************** Winners Announced in National Wheat Yield Contest The National Wheat Yield Contest announced the 2022 winners. Rylee Reynolds of Twin Falls County, Idaho, set a contest yield record of 231.37 bushels an acre. That tops the previous record of 211 bushels per acre set in 2019. Rylee and his dad Gary both placed as national winners in the winter wheat irrigated category. In other results, the Pacific Northwest had some excellent yields this year as all four Bin Buster Award winners are from that region of the country. The contest encourages wheat growers to strive for high yield, quality, and profit while trying out new and innovative strategies for managing their wheat crop. The National Wheat Foundation, which puts on the contest, says there was exceptional participation from all over the nation’s top wheat-growing states. State winners are announced in 27 states, and six of those winners had never won at the national level before this year. *********************************************************************************** Educational Opportunities Ahead at the Cattle Industry Convention The 30th annual Cattlemen’s College will precede the 2023 Cattle Industry Convention and Trade Show on February 1-3 in New Orleans, Louisiana. The educational opportunity draws more than 1,000 attendees every year and includes two days of learning, idea sharing, and networking. The college begins on Tuesday, January 31, with some of the biggest topics in the industry, including the latest in grazing and live cattle handling demonstrations. There are 18 sessions and six educational tracks to choose from on Wednesday, including reproduction technology, herd health, practical nutrition management, better beef business, sustainable grazing, and the latest in genetics. The event concludes with a keynote presentation from Ray Starling of Aimpoint Research. There’s a lot of information at the event, and it’s likely not possible to attend everything in person. To make it easier to access the content, all sessions will be recorded and available for registered attendees. Go to convention.ncba.org for information.
| Rural Advocate News | Friday October 21, 2022 |
Friday Watch List Markets Traders continue to keep an eye on the latest weather forecasts, developments along the Mississippi River and outside market news, especially concerning Ukraine. USDA's Cattle on Feed report for Oct. 1 is due out at 2 p.m. CDT Friday and is expected to show 11.45 million head on feed, down nearly 1% from a year ago. Weather A pattern change is underway with a storm system set to drop down into the western states later today and through the weekend, bringing scattered showers to the Pacific Northwest. East of the Rockies it is quickly getting warmer than where we were just a couple of days ago. It is also very dry and increasing winds will lead to higher risks of fires in areas of drought, which are widespread in the country.
| Rural Advocate News | Thursday October 20, 2022 |
USDA, USAID Announce Global Food Security Research Strategy Agriculture Secretary Tom Vilsack and USAID Administrator Samantha Power Wednesday released the U.S. government's Global Food Security Research Strategy. The strategy underscores the U.S. government's commitment to ending hunger and malnutrition and building medium to long-term sustainable, resilient food systems, according to USDA. The new research strategy emphasizes priority objectives and the use of data to help strengthen the impact of U.S. food security assistance and, with America's leadership, generate sustainable solutions for addressing the root causes of hunger and malnutrition, which are both inextricably linked to entrenched, extreme poverty. The research strategy will underpin the United States Government Global Food Security Strategy. Secretary Vilsack says, "Investment in, and support for, agricultural research and development is imperative so that the world's farmers have access to innovations that enhance productivity and efficiency." The strategy focuses on climate-smart agricultural innovations, improved nutrition through high-quality, affordable diets, and genetic improvement of resilient crops and livestock. *********************************************************************************** Lawmakers Urge FTC to Investigate Kroger-Albertsons Merger Senate Democrats urge the Federal Trade Commission to investigate the proposed merger between Kroger and Albertsons. The two are concerned about the transaction's potential implications for consumers. The group of lawmakers includes Minnesota's Amy Klobuchar, Connecticut's Richard Blumenthal and New Jersey's Cory Booker. In a letter to the FTC, the lawmakers say, "The grocery industry is essential to daily life, and Americans need the benefits that robust competition brings, namely lower prices, higher quality, and innovation." The lawmakers say the merger comes as food prices are elevated, and "too many American families are struggling to put food on the table." When Albertson’s merged with Safeway in 2015, the FTC found that the merger was likely to harm competition in 130 separate markets and required the company to sell more than 150 stores. Additionally, Klobuchar announced the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, will hold a hearing in November to examine the proposed transaction. *********************************************************************************** Grassley, Ernst Urge EPA to Set Robust RFS Blending Volumes Iowa Senators Chuck Grassley and Joni Ernst Wednesday urged the Environmental Protection Agency to establish expanded renewable volume obligations in the upcoming "set" rule under the Renewable Fuel Standard. The Iowa Republicans Join South Dakota Republican John Thune and Illinois Democrat Dick Durbin to encourage the agency to increase blending obligations for all renewable fuel types. In a letter to the EPA, the lawmakers say, "Through this rulemaking, EPA has a historic opportunity to not only reinforce its efforts to restore integrity to the RFS, but chart a new course for biofuels that will help meet America's diverse energy demands." Additionally, the lawmakers urge EPA to take other actions to maximize uses for biofuels, including updating lifecycle analysis for biofuel emissions and approving additional fuel registrations under the RFS. Other Senators from Kansas, Minnesota, Nebraska, Ohio and Wisconsin also signed the letter to the EPA. *********************************************************************************** Florida Ag Losses Estimated at $1.5 Billion The University of Florida Institute of Food and Agriculture Sciences this week released a preliminary assessment of the agricultural production losses associated with Hurricane Ian. The report, which considered crops, livestock, and animal products, estimates a potential loss of up to $1.56 billion for Florida producers. The Economic Impact Analysis Program conducts assessments after any event that disrupts Florida's agriculture industry, with assessments for Hurricane Ian initiated on September 29, 2022, through a survey to producers. Florida Agriculture Commissioner Nikki Fried says, "The impact on Florida's affected commodities cannot be understated, especially the heartbreaking damage to Florida citrus, an industry already facing significant challenges." The preliminary assessment may not account for damage in inaccessible areas or flood areas that cannot be evaluated until fields have dried out. The Florida Department of Agriculture and Consumers Services is expected to release its own findings later this week. *********************************************************************************** Third-Party Use High for Employer H-2A Applications U.S. farmers who want to hire temporary foreign workers through the H-2A visa program usually work with a third party, according to USDA's Economic Research Service. The new data announced this week indicated third parties, such as agents, associations or a lawyer, to make the applications. Employers themselves filed applications for only 15 percent of all jobs requested. Across the U.S., agents filed applications for 45 percent of all H-2A jobs, an association of farm enterprises filed for 21 percent of jobs, and 19 percent came from a lawyer representing the farmer. However, the usage rates for third parties differ across states. For instance, lawyers tend to file for most of the jobs in California, while agents and associations account for almost two-thirds of the job filings in Florida. The H-2A program allows farm operators who foresee a shortage of domestic workers to bring nonimmigrant foreign workers to the U.S. temporarily to perform agricultural labor or services. *********************************************************************************** Student Leaders Prepare for the 95th National FFA Convention FFA members and supporters from across the country will celebrate agriculture and agricultural education next week during the 95h National FFA Convention & Expo in Indianapolis. More than 60,000 FFA members from the U.S., Puerto Rico and U.S. Virgin Islands are expected to participate in the event. Those attending will participate in general convention sessions hosted at Lucas Oil Stadium, be inspired by their peers as they are recognized for their accomplishments, and hear from keynote speakers. Convention attendees will also explore various career paths at the National FFA Expo, located in the Indiana Convention Center, participate in career success tours, and more. There are several entertainment opportunities, including a Wednesday night concert featuring Lauren Alaina and Jimmie Allen and a Thursday night concert with Mickey Guyton and Russell Dickerson, and rodeos on Wednesday, Thursday and Friday nights. General convention sessions will be aired live on RFD-TV and The Cowboy Channel. FFA members and supporters can tune in and watch gavel-to-gavel coverage of the event.
| Rural Advocate News | Thursday October 20, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. A report on U.S. existing home sales in September and the Conference Board's index of U.S. leading indicators are due out at 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Traders will keep an eye on weather and outside market news. Weather Ahead of a change in the upper-level pattern, temperatures are rising east of the Rockies from the cold conditions we have seen the last few days there. It will continue to be fairly dry outside of Michigan where some lake-effect showers will shut off later Thursday. The dryness will promote harvest and fieldwork, but increasing winds could be concerning for fires, especially in the Plains.
| Rural Advocate News | Wednesday October 19, 2022 |
Inflation Reduction Act Payments to Distressed Farmers Reaches $800 Million Agriculture Secretary Tom Vilsack Tuesday announced distressed farmers with qualifying USDA farm loans have already received nearly $800 million in assistance from the Inflation Reduction Act. The $3.1 billion in assistance for distressed farm loan borrowers stems from section 220006 of the Inflation Reduction Act. The legislation directed USDA to expedite assistance to distressed borrowers of direct or guaranteed loans administered by USDA's Farm Service Agency, whose operations face financial risk. Secretary Vilsack says the funding "helps keep our farmers farming and provides a fresh start for producers in challenging positions." The announcement kicks off a process to assist distressed farm loan borrowers using several complementary approaches, with the goal of keeping them farming, removing obstacles, and improving how USDA approaches borrowing and servicing. Work has already started to bring some relief to distressed farmers. As of today, more than 13,000 borrowers have already benefited from the resources provided under the Inflation Reduction Act, according to USDA. *********************************************************************************** Avian Flu Poultry Deaths Near U.S. Record Avian influenza losses are nearing a record in the United States this year, as the virus has infected more wild birds that transmit the disease. A new report from Reuters shows more than 47 million birds have died from infections and culling. The outbreak sparked export bans and lowered egg and turkey production, leading to tight supplies and higher prices as the Thanksgiving Day shopping period nears. The 47 million deaths are near the deadliest U.S. outbreak in 2015, where 50.5 million birds died or were culled. Rosemary Sifford, chief veterinary officer for the Department of Agriculture, says, "Unfortunately, what we've done probably hasn't been enough to protect us from this high load of virus in the wild bird population." Officials are finding the virus in a wide range of wild birds, and it seems to live longer in the birds. Since February, USDA reports the outbreak has infected flocks in 42 states. *********************************************************************************** Online Grocery Baskets Shrinking Online grocery buyers are spending more but buying less, according to a new report this week. The Grocery Doppio Performance Report shows digital sales improved in the third quarter of 2022, albeit lower than 2021 levels. The report shows 13.7 percent of all grocery sales in 2022 are digital, worth $87 billion. There was a 14.4 percent increase in digital sales in the third quarter of 2022 compared to the second quarter of the year. However, inflation is impacting what buyers are purchasing. The report shows shoppers' basket size declined by 5-6 items in the third quarter. Shoppers are faced with a 21 percent increase in price per item in 2022, and 73 percent of shoppers have moved to lower-priced brands in response to the increased prices. Meanwhile, grocery retailers face $2 billion in lost sales due to canceled online orders this year, and a $7.5 billion loss for items not in stock. *********************************************************************************** Online SNAP, P-EBT Totaled $9.7 Billion During Pandemic Online nutrition assistance recipients redeemed $9.4 billion in benefits during the first two years of the COVID-19 pandemic. USDA’s Economic Research reported Tuesday the redemptions came from the Supplemental Nutrition Assistance Program, or SNAP, along with the Pandemic Electronic Benefit Transfer benefits, or P-EBT. The programs allowed users to buy groceries online from authorized retailers. The pilot launched with several retailers in 2019 and early 2020 before the onset of the COVID-19 pandemic. The pilot opened to additional states and retailers in response to the pandemic. The number of participating retailers expanded significantly in the first two years of the pandemic. By December 2020, USDA authorized 13 retailers, growing to 116 in December 2021 and to 148 in March 2022. In 2020, SNAP and P-EBT recipients redeemed $1.5 billion in benefits online. In 2021, this amount more than quadrupled to $6.2 billion. Online redemptions in the first quarter of 2022 totaled $1.9 billion. *********************************************************************************** Florida Lawmakers Seek USDA Disaster Declaration A group of bipartisan lawmakers from Florida wants the Department of Agriculture to declare a disaster area for Florida counties impacted by Hurricane Ian. The lawmakers made the request last week in a letter to Agriculture Secretary Tom Vilsack. The letter also asked Vilsack to make assistance available to growers whose crops were damaged or destroyed. The letter states, "to ensure that they can recover from losses and continue their important service of feeding America, the expeditious approval of a disaster declaration is warranted and necessary in order to have a successful winter and spring harvest season." The lawmakers say Florida's growers have a unique role in the American food economy, as one of the only locations in the United States where major agricultural production can occur in the winter and spring months. Also last week, USDA's Economic Research Service reported Florida accounted for 1.7 percent of U.S. farm sector cash receipts in 2021. *********************************************************************************** Purdue, USDA, Release Online Freeze-date Tool A new interactive online tool for visualizing and exploring freeze-date trends and other climate patterns is available, thanks to Purdue University and the Department of Agriculture. Purdue’s Midwestern Regional Climate Center partnered with USDA’s Midwest climate hub to create the digital tool, which covers 25 states in the upper Midwest, the Northeast and Appalachia. The tool may interest producers of tree fruits, grapes and row crops such as corn and soybeans to help them take advantage of longer growing seasons. Agricultural advisors, weather forecasters, university Extension staffers and state climatologists also have expressed interest in the tool. While many think of a freeze at 32 degrees, farmers are interested in values that are colder or warmer. Corn and soybeans, for example, can survive 28 degrees, while fruit trees are more sensitive to freezing or near-freezing temperatures. And the freeze-date tool allows users to query their desired temperatures. You can find the Freeze Date tool on the Purdue website.
| Rural Advocate News | Wednesday October 19, 2022 |
Wednesday Watch List Markets A report on U.S. housing starts for September is due out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m. CDT, including ethanol production. Traders will continue to watch the latest weather forecasts and any news that develops, especially regarding Russia's grain deal with Ukraine. The Federal Reserve's Beige Book will be out at 1 p.m., offering its latest assessment of the U.S. economy. Weather Widespread near-record cold conditions east of the Rockies have led to sub-freezing temperatures close to the Gulf of Mexico Wednesday morning. In the cold air, lake-effect rain and snow showers continue over eastern areas of the Lakes, annoying those with fieldwork to do. Otherwise, the drier conditions elsewhere are favorable. While still cold on Thursday, temperatures will be gradually rising for the rest of the week and weekend, starting in the Plains this afternoon.
| Rural Advocate News | Tuesday October 18, 2022 |
USDA Opens 2023 Dairy Margin Coverage Program Enrollment Dairy producers can now enroll for 2023 coverage through the Dairy Margin Coverage Program. The program helps dairy farmers manage changes in milk and feed prices. Enrollment for the program began Monday and runs through December 7. Last year, USDA’s Farm Service Agency took steps to improve coverage, especially for small- and mid-sized dairies, including offering a new Supplemental DMC program and updating its feed cost formula to better address retroactive, current and future feed costs. DMC is a voluntary risk management program that protects dairy producers when the difference between the all-milk price and the average feed price—the margin—falls below a certain dollar amount selected by the producer. National Milk Producers Federation President and CEO Jim Mulhern encouraged dairy producers to consider the maximum coverage under the program. Mulhern says, "The current combination of high prices with costs that can be even higher illustrates the basic value of DMC for producers who can benefit from the program." *********************************************************************************** Federal Milk Marketing Order Forum Successfully Brings Sector Together The American Farm Bureau Federation is celebrating a successful Federal Milk Marketing Order Forum held over the weekend in Kansas City, Missouri. The National Milk Producers Federation, dairy cooperatives, processors, state dairy associations and dairy farmers joined AFBF for the event. The three-day event provided a platform for farmers’ voices to be heard while also answering the call from Agriculture Secretary Tom Vilsack to bring the dairy producer community together to discuss FMMO modernization. Discussions at the forum focused on Class price formulas and de-pooling, among other topics. The American Farm Bureau Federation and the National Milk Producers Federation agreed on a joint statement regarding the need for FMMO improvements. A number of dairy organizations attending the event also supported the joint AFBF-NMPF statement. The AFBF-NMPF statement reads: “With the last major update to the FMMO system occurring in 2000, we believe it is time to consider improvements that better reflect today’s milk markets.” *********************************************************************************** 16,000 Farmers, Ag Organizations, Submit Comments on EPA Atrazine Proposal More than 16,000 farmers and agricultural organizations recently united against EPA's proposed revision to its 2020 atrazine registration review decision. The farmers and agricultural organizations representing corn, citrus, grain sorghum, sugar cane, and other crops, submitted comments calling for the agency to base decisions on credible scientific evidence. Efforts to help farmers speak out against the proposal were coordinated by the Triazine Network, a diverse coalition of state and national agricultural groups that rely on atrazine and other triazine herbicides to control weeds. The atrazine comment period ended on October 7. In their comments, growers expressed frustration with the EPA's lack of transparency and its repeated efforts to implement measures that would end effective use of atrazine for weed control. In addition to the ultra-low 3.4 ppb level, EPA doubled and tripled down by creating an over-predictive model that predicted 72 percent of U.S. corn acres would be in violation. *********************************************************************************** Growth Energy: Access to E15 Would Save Drivers more than $20 Billion A new study from Growth Energy found nationwide access to E15 could save drivers billions in annual fuel costs, create new jobs, and return billions to the U.S. economy. The study, conducted by ABF Economics, follows months of record-high gas prices across the country and President Joe Biden's emergency waiver to allow the sale of E15 for the 2022 summer driving season. The study says a nationwide transition to E15 would also put an additional $36.3 billion in income into the pockets of American households, support an additional 188,000 jobs, and generate $66.3 billion for the U.S. Gross Domestic Product. Growth Energy CEO Emily Skor responds, “Today's study shows that expanded, year-round access of this higher biofuel blend can provide a much-needed boost to the farm economy and even greater savings to American families." E15 is currently sold at over 2,700 stations across 31 states, and drivers have chosen the biofuel blend to fuel 35 billion miles total. *********************************************************************************** U.S. Durum Production Increasing, Food Use Remains Stable U.S. durum wheat production is expected to increase in the 2022/23 marketing year after last year’s drought reduced production to its lowest in 60 years. USDA’s Economic Research Service reported Monday production in 2022/23 is forecast at 64 million bushels, up 70 percent from the previous marketing year, but below the average of the previous five years. Durum wheat is the primary class of wheat used to produce pasta. Food use of durum was elevated in marketing years 2019/20 and 2020/21, fueled by surging consumer demand during the COVID-19 pandemic, when shoppers stocked up on pasta while in quarantine. While the surge in demand has since subsided, consumer prices for wheat-based products, including pasta, are up substantially in 2022. This year's larger durum crop, along with larger Canadian production, has eased some supply pressure. However, high commodity prices in general and elevated input, labor, and energy costs have each contributed to higher prices for the manufactured products of wheat, including pasta. *********************************************************************************** Weekly Gas Prices Reverse, Diesel Higher The nation's average gas price declined for the first time in four weeks, falling 5.4 cents from a week ago to $3.86 per gallon. The national average is up 20.6 cents from a month ago and 56.6 cents per gallon higher than a year ago. The national average diesel price increased 18.7 cents in the last week and stands at $5.26 per gallon. GasBuddy's Patrick De Haan says, “We’ve seen an abrupt, yet expected decline as refinery issues have eased in the West and Great Lakes, overpowering some increases elsewhere.” In addition, oil prices have cooled off slightly after OPEC+’s decision to cut production, and that should slow increases elsewhere. Diesel and heating oil prices will likely continue to rise as extremely low inventories of middle of the barrel products like these two push prices higher. According to data from the Energy Information Administration, oil supplies last week surged nearly 10 million barrels.
| Rural Advocate News | Tuesday October 18, 2022 |
Tuesday Watch List Markets The Federal Reserve's report of U.S. industrial production in September is the only significant report for Tuesday, due out at 8:15 a.m. CDT. Traders will keep close attention on the latest weather forecasts, news from Ukraine and at 1 p.m., some will take a look at USDA's monthly Livestock, Dairy and Poultry outlook. Weather Cold air that has drifted southward is resulting in widespread frosts and freezes Tuesday morning for much of the country east of the Rockies. This is record cold for some areas. The cold air is pretty dry outside of the Great Lakes where lake-effect showers continue as a mix of rain and snow, which will be an annoyance for those still looking to complete some fieldwork and harvest.
| Rural Advocate News | Monday October 17, 2022 |
USDA Releases Proposed Regulatory Framework on Reducing Salmonella The USDA’s Food Safety and Inspection Service released a proposed regulatory framework for a new strategy to control Salmonella contamination and reduce illnesses from poultry products. The agency will host a virtual public meeting on November 3 to get input from stakeholders on the framework. The proposed framework has three components: requiring that incoming flocks be tested for Salmonella before entering an establishment; enhancing establishment process control monitoring and FSIS verification; last is implementing an enforceable final product standard. “We know that Salmonella in poultry is a complex problem with no single solution,” says USDA Deputy Undersecretary Sandra Eskin. “We have identified a series of strategic actions FSIS could take that are likely to drive down Salmonella infections linked to poultry product consumption, and we are pressing those in this proposed framework.” For more information on the virtual meeting, go to the Meetings and Events page on the FSIS website. *********************************************************************************** NCC Says New FSIS Salmonella Framework Lacks Data, Research The USDA announced its new regulatory framework in an effort it says would help reduce Salmonella illnesses associated with poultry products. “We support the need to develop science-based approaches that will impact public health, but this is being done backward,” says Dr. Ashley Peterson, National Chicken Council senior vice president of scientific and regulatory affairs. “The agency is formulating regulatory policies and drawing conclusions before gathering data, much less analyzing it, which is called speculation.” The NCC says the facts show that the Centers for Disease Control and FSIS’s own data demonstrate progress and clear reductions in Salmonella in U.S. chicken products. “Increased consumer education about proper handling and cooking of raw meat must be part of any framework going forward,” Peterson says. “Proper handling and cooking of poultry is the last step, not the first, that will help eliminate any risk of foodborne illness. We’ll do our part to promote safety.” *********************************************************************************** Land O’ Lakes Launches “Farmers are Incredible” Campaign Land O’ Lakes is celebrating National Farmers Day by raising consumer awareness of the critical role that farmers play in society by launching the “State of the American Farmer” survey. The survey revealed some of the misconceptions that Americans have about the state of farming. On average, Americans believe that less than half of all farms are family-owned and operated and that just 43 percent of what they buy comes from family farms. Despite some misconceptions, most Americans are interested in the source of their food. Nearly all of the survey respondents say it’s at least somewhat important that their groceries be sourced sustainably. To show support for farmers, Land O’ Lakes launched “Farmers are Incredible,” a multiplatform creative campaign rooted in celebrating National Farmers Day. The goal is to emphasize the year-round importance of farmers and the agriculture industry. The campaign features the co-op’s farmer members and their work. *********************************************************************************** Corn Belt Farmland Price Sets New Record A recent farmland sale in Iowa set a new record for the Corn Belt. In Plymouth County, Iowa, farmland was sold for $26,250 per acre. Ag Web Dot Com says Brock Auction Company brokered the sale, which included 55 acres of high-quality farmland. That put the total bill at $1.44 million. The bidding began at $17,000 per acre, and three bidders each topped $25,000 per acre, with a local farmer getting the winning bid. This sale now holds a record high for farmland prices. It’s bigger than the last number one sale price from August, when a farm in Sioux County, Iowa, sold for $26,000 per acre. A Plymouth County, Iowa farm recently sold for $25,000 per acre. Numbers in Iowa appear to be up across the board. The Iowa Chapter of the Realtors Land Institute says the value of high-quality cropland is $14,472 per acre, up almost 17 percent from September 2021. *********************************************************************************** Farm Bureau Announces Farm Bill Priorities The American Farm Bureau released its top priorities for the 2023 Farm Bill, easily the most consequential legislation for agriculture next year. The overarching priorities include continuing the current farm bill program funding levels and maintaining a unified farm bill that includes nutrition programs and farm programs together. Farm Bureau also favors prioritizing risk management tools that include federal crop insurance and commodity programs and ensuring adequate USDA staffing and resources to provide technical assistance. “Since the farm bill was enacted in 2018, farmers have faced significant challenges from market volatility, increased input costs, and devastating natural disasters,” says AFB President Zippy Duvall. “We need long-term stability.” Their priorities include more than 60 recommendations over multiple farm bill titles. Other recommendations include reference price increases for commodities, more transparency for milk checks, funding for conservation programs, rural development, and streamlining of nutrition programs to get food to those who need it most. *********************************************************************************** Ethanol Output Jumps to Highest Level in a Month The Energy Information Administration says U.S. ethanol production jumped to its highest level in almost a month during the week ending on October 7. Ethanol output rose to an average of 932,000 barrels per day, the largest production level since the week ending on September 9 and up from the 889,000 produced during the prior week. The Midwest is the biggest ethanol-producing area in the country, and output surged to an average of 881,000 barrels a day, the highest level in a month and up from 840,000 a week earlier. East Coast production jumped to 10,000 barrels a day, up from 3,000 barrels the week before. Rocky Mountain output was unchanged, while production dropped on the Gulf Coast by 7,000 barrels a day and 1,000 on the West Coast. Ethanol inventories rose to 21.86 million barrels in the seven days ending on October 7, up from 21.68 million barrels a week earlier.
| Rural Advocate News | Monday October 17, 2022 |
Monday Watch List Markets Back from the weekend, traders will stay on top of the latest weather forecasts and news developments, especially from Ukraine after Russia's President Putin suggested Friday missile attacks were no longer needed. USDA's weekly report of export inspections has become on way of tracking problems on the Mississippi River and is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Also, the National Oilseeds Processors Association will release its estimate of members' soybean crush late Monday morning. Weather A strong cold front pushed south through the country over the weekend. It will continue its journey into the Gulf of Mexico Monday, bringing scattered showers to parts of Texas. But the bigger story is the very cold air filling in behind the front. Widespread frosts and freezes will occur over the next few nights, getting down to Oklahoma, northern Mississippi and Alabama tonight. The cold pushes closer to the Gulf of Mexico for later this week. Cold air moving over the Great Lakes is causing a mix of lake-effect rain and snows that continues the next couple of days, annoying those with fieldwork to do.
| Rural Advocate News | Friday October 14, 2022 |
Consumer Price Index Summary The Consumer Price Index rose 0.4 percent in September on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported Thursday. The food index increased 0.8 percent in September, the same increase as August. The food at home index rose 0.7 percent in September as all six major grocery store food group indexes increased. The index for fruits and vegetables rose 1.6 percent, while the index for cereals and bakery products rose 0.9 percent. The index for meats, poultry, fish, and eggs rose 0.4 percent, while the index for nonalcoholic beverages increased 0.6 percent in September. The dairy index rose 0.3 percent in September, the same increase as the previous month. The food away from home index rose 0.9 percent in September, as it did in August. The food at home index rose 13.0 percent over the last 12 months, and the index for food away from home rose 8.5 percent over the last year. *********************************************************************************** MacKenzie Scott Gift to 4-H to Strengthen Workforce The National 4-H Council Thursday shared details of the $50 million unrestricted gift from writer and philanthropist MacKenzie Scott, announced in February. The gift will help close the opportunity gap for America's youth. Over the next five years, National 4-H Council will allocate $10 million to strengthen the 4-H workforce and optimize 4-H youth programming. The investment will accelerate 4-H's ability to meet the needs of young people today and tomorrow while providing the professional development and training required to deliver quality, relevant and impactful programming. The Board will preserve the remainder of the gift for the long term to ensure that National 4-H Council can sustain programs and activities that have the greatest benefits for 4-H youth development in the future and to ensure the gift's enduring impact. The National 4-H Council Board made its investment decisions based on an inclusive process undertaken over six months with extensive input from Cooperative Extension and land-grant university leaders. *********************************************************************************** USDA Seeks Comment on Program Assisting Producers Who Have Experienced Discrimination The Department of Agriculture seeks public comment on how it should implement Section 22007 of the Inflation Reduction Act. The provision aims to assist the nation’s farmers, ranchers, and forest landowners who experienced discrimination in USDA’s farm lending programs. Section 22007 provides a transformative opportunity for USDA to help farmers, ranchers, and forest landowners impacted by discrimination in USDA farm lending programs. IRA Section 22007 directs USDA to provide financial assistance to producers who have experienced discrimination in USDA’s farm lending programs and has appropriated $2.2 billion for this purpose. Agriculture Secretary Tom Vilsack says, “These actions further build on USDA’s commitment to use all the tools it has available to help farmers.” The request for information in the Federal Register asks several questions on how USDA should design and administer the program. The 30-day comment period opens Friday, October 14, and closes on November 14, 2022. USDA values your input and welcomes all comments. *********************************************************************************** Grains Council Holds Export Exchange in Minneapolis More than 200 international buyers and end-users of coarse grains and co-products from more than 50 countries are gathering in Minneapolis for Export Exchange 2022 to end the week. The event is co-sponsored by the U.S. Grains Council, Growth Energy and the Renewable Fuels Association. Export Exchange offers attendees an unparalleled opportunity to meet and build relationships with domestic suppliers of corn, distiller's dried grains with solubles, sorghum, barley and other commodities. U.S. Grains Council president and CEO Ryan LeGrand says, “It is essential for us to strengthen the bonds between suppliers and partner countries, and the connections made this week will not only help propel our industry this year, but for years to come.” The global buyers were grouped into 20 trade teams that have either been in the U.S. ahead of Export Exchange or will continue their visits after the event to explore American agriculture practices and tour facilities. *********************************************************************************** Florida Accounted for 1.7 Percent of U.S. Farm Sector Cash Receipts in 2021 New data from the Department of Agriculture shows Florida accounted for 1.7 percent of U.S. farm sector cash receipts in 2021. USDA's Economic Research Service estimates the previous year's farm sector cash receipts—the cash income received from agricultural commodity sales. The data includes state-level estimates, which offer background information about states subject to unexpected events that affect the agricultural sector, such as Hurricane Ian. In 2021, commodities produced in Florida contributed about $7.5 billion, or 1.7 percent, of the $434 billion in total U.S. cash receipts. Floriculture, the cultivation of flowers, accounted for the largest share of Florida's cash receipts, valued at $1.1 billion. The next largest commodities in Florida in terms of cash receipts were oranges, at $670 million, sugarcane at $553 million, cattle and calves at $546 million, and milk $470 million. Florida led the nation in cash receipts for sugarcane, cabbage, cucumbers, watermelon, sweet corn, and snap beans. *********************************************************************************** Taziki's Doubles Down with American Lamb Taziki's Mediterranean Café and the American Lamb Board teamed up this summer to promote a new Mediterranean Lamb Burger, made with two patties of 100% American Lamb. The promotion ran from June through September. Dan Simpson, CEO of Taziki’s, says, “Our guests loved the Mediterranean flair added to comfort food and sales surpassed our expectations.” Headquartered in Birmingham, Alabama, Taziki’s Mediterranean Café has 90 locations spanning across 16 states nationally, with most locations in the Southeast. Because of its popularity, about 50 percent of the Taziki’s locations continued to offer the lamb burger for an additional month beyond the promotion period. A similar promotion was featured last year with great results, which led to a repeat feature in 2022. American Lamb Board chairman Peter Camino says, “We thank Taziki’s for their commitment to using American Lamb in their lamb burgers. Serving local lamb supports the nation's shepherds and their families.”
| Rural Advocate News | Friday October 14, 2022 |
Friday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT Friday and expectations remain low, while barge traffic is restricted along the Mississippi River. A report on U.S. retail sales for September is also out at 7:30 a.m., followed by the University of Michigan's early consumer sentiment index for October at 9 a.m. Traders will continue to keep an eye on the latest weather forecasts and outside market news, especially anything pertaining to Ukraine and the grain deal with Russia. Weather A storm system continues to spin around Ontario, Canada on Friday. In the cold air wrapping around the system, some isolated showers continue in the Upper Midwest and Great Lakes, including a few snowflakes. Breezy winds also continue across a good chunk of the country as well. In drier areas, there is an increased fire risk.
| Rural Advocate News | Thursday October 13, 2022 |
Combine Sales Grow, Tractor Sales Drop in September Combine harvester sales rose during September in both the U.S. and Canada, while total tractor sales fell in both countries. Data from the Association of Equipment Manufacturers says total U.S. ag equipment unit sales stayed above the five-year average for the second month since April. Total farm tractor sales fell 12.8 percent in September compared to last year, while U.S. self-propelled combine sales for the month rose 6.6 percent, slowing gains made in August. The 100-plus horsepower two-wheel-drive tractor segment was once again the only positive segment in the U.S., up 9.6 percent from August. In Canada, growth was led by combine harvesters, up 105 percent. Overall unit sales for tractors were down one percent. “The ag equipment market, as with most markets for manufactured goods, is turbulent,” says Curt Blades, senior vice president of industry sectors and product leadership with AEM. “Supply chain difficulties continue to weigh on manufacturers’ deliveries.” *********************************************************************************** Soy Checkoff Supports Research to Expand Export Infrastructure The United Soybean Board announced it is investing $400,000 to help provide efficient access and bolster international trade markets for U.S. soybean meal. The money will be used for the research, analysis, and design costs of the Port of Grays Harbor’s Terminal Four Expansion and Redevelopment Project. The terminal in Aberdeen, Washington, plays an important role in international exports. “The Port of Grays Harbor is critical in expanding high-value soybean meal exports,” says Tony Johanson, USB director and Soy Transportation Coalition board member. “Our farmers remain committed to enhancing and maintaining U.S. infrastructure to help sustain our competitive advantage over global competitors.” Scheduled to be operational in 2025, the upgrades will allow the terminal to increase soybean meal exports from three to six million metric tons. To accommodate the growth, the Port of Grays Harbor will expand the rail infrastructure, allowing the terminal to handle the volume and mitigate traffic congestion. *********************************************************************************** USDA Investing $110 Million to Improve Rural Healthcare USDA Rural Development Undersecretary Xochitl (zo-CHEEL) Torres Small announced that the agency is awarding $110 million in grants to improve healthcare facilities in rural towns across America. These grants will help 208 rural healthcare organizations expand critical services for five million people in 43 states and Guam. “Access to modern and sustainable healthcare infrastructure is critical to the health, well-being, and prosperity for the millions of people who live in rural and tribal communities,” she says. “That’s why we are committed to making sure that the people who need it most, no matter where they live, have access to high-quality and reliable health services like urgent care, primary care, and dental care.” Torres Small also says through the Emergency Rural Health Care Grants, USDA is being a ”strong partner” to people across 43 states and Guam. The investments will help build, renovate, and equip rural hospitals and clinics. *********************************************************************************** October WASDE Report Shows Lower Corn, Soybean Production USDA’s October World Ag Supply and Demand Estimates and Crop Production Reports call for lower U.S. corn and soybean production. The corn outlook is for reduced supplies, greater feed and residual use, lower exports and corn used for ethanol, and smaller ending stocks. Corn production is forecast at 13.8 billion bushels, down 49 million on a reduction in yield to 171.9 bushels per acre. Corn supplies are forecast at 15.32 billion bushels, with the season-average corn price up five cents to $6.80. U.S. oilseed production is forecasted at 126.9 million tons, down 1.6 million from September. Soybean production is forecast at 4.3 billion bushels, down 65 million on lower yields now projected at 49.8 bushels. Supplies dropped by 31 million bushels, with the season-average soybean price down 35 cents to $14.00. The wheat outlook is for lower supplies, domestic use, exports, and stocks. The season-average farm price rose 20 cents to $9.20. *********************************************************************************** NCBA Says Google Feature Misrepresents Beef The National Cattlemen’s Beef Association denounced Google’s decision to bias consumers against beef through their new sustainability search feature. NCBA says that feature provides inaccurate climate information about cattle production. “Google is using its billions of dollars of resources to target cattle producers and ignore the science that demonstrates beef’s sustainability and value to the environment,” says NCBA President Don Schiefelbein (SHEEF-ell-byne). “Cattle producers have a record of continuous improvement, which has led to the U.S. recording the lowest global greenhouse gas emissions from beef while contributing to the world’s food security.” NCBA also says cattle production protects green space, upcycles grass and forages, and provides consumers with a lean source of protein packed with essential nutrients. “Google should seriously reconsider this feature,” Schiefelbein adds. NCBA points out that livestock play an important role in protecting open spaces and accounts for only a very small portion of greenhouse gas emissions. *********************************************************************************** Railroad Union Votes Down Labor Contract, Strike Looming The Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters rejected a tentative labor contract brokered between rail carriers and workers’ union reps. The third-largest rail workers union in the country was the first union to say no to a deal brokered in part by the Biden administration. The union voted the deal down 6,646 to 5,100. President Tony Cardwell told Politico that workers “resent the fact that management holds no regard for their quality of life, illustrated by their stubborn reluctance to provide a higher quantity of paid time off, especially for sickness.” Negotiations will restart, resetting the countdown on a potential strike. The union says it will delay any strike until five days after Congress reconvenes. Four other unions approved the tentative agreement. However, every one of the 12 unions representing employees must ratify their contracts to prevent a strike. Voting will be finished by mid-November.
| Rural Advocate News | Thursday October 13, 2022 |
Thursday Watch List Markets Thursday morning's reports will start at 7:30 a.m. CDT with attention on the Labor Department's consumer price index for September, following a producer price report that came in higher than expected Wednesday. U.S. weekly jobless claims and an update of the U.S. Drought Monitor will also be out at the same time. The Energy Department's natural gas storage report will be out at 9:30 a.m., followed by the weekly energy inventory report at 10:00 a.m. The Treasury's budget report for September is due out at 2 p.m. USDA's weekly export sales report is set for Friday morning, due to this week's federal holiday. Weather A cold front continues to press eastward through the country on Thursday with scattered showers. Cold air continues to funnel in behind the front across most of the country east of the Rockies. Breezy winds continue Thursday, especially in the Plains, which increases the fire risk.
| Rural Advocate News | Wednesday October 12, 2022 |
Ag Groups Argue Against Prop 12 in Supreme Court Agriculture groups argued against California's Proposition 12 to the Supreme Court Tuesday. The American Farm Bureau Federation and National Pork Producers Council challenged the ability of one state to set agricultural production standards for the entire country. California's Proposition 12 law bans the sale of pork from hogs that don't meet the state's arbitrary production standards, even if the hogs were raised outside of California. AFBF President Zippy Duvall says, "Proposition 12's misguided approach will ultimately cost every family through higher food prices." The National Cattlemen's Beef Association also supports AFBF and NPPC. NCBA Vice President of Government Affairs Ethan Lane says, "While this case is not focused on cattle producers, the precedent set by the court will determine all producers' ability to engage in interstate commerce." Earlier this year, NCBA filed an amicus brief before the court arguing that California's mandates on livestock production methods violated the dormant commerce clause of the Constitution. *********************************************************************************** Biden Administration Invests $80 Million to Improve Nutrition in School Meals The Biden Administration Tuesday provided $50 million in grants for schools to invest in new food service equipment that will allow them to continue serving nutritious meals. The funding adds to the $30 million equipment grants the administration gave schools earlier this year. The announcement comes during National School Lunch Week, as designated by President Joe Biden. The added support for school meals and child nutrition builds on the momentum from last month's White House Conference on Hunger, Nutrition and Health, where the administration unveiled a national strategy to end hunger and reduce diet-related disease by 2030. Agriculture Secretary Tom Vilsack says, "Ensuring access to nutritious school meals is one of the best investments we can make in our fight to end child hunger and improve health." USDA provides grant funds to states, which use a competitive application process to award them to school districts participating in the National School Lunch Program. *********************************************************************************** Global Food Insecurity Increased Nearly 10 Percent in 2022 New research from USDA’s Economic Research Service announced Tuesday shows global food insecurity increased by nearly ten percent in fiscal year 2022. USDA’s International Food Security Assessment model estimates how food prices and incomes affect food demand and access in 77 low- and middle-income countries. Food security is then evaluated by estimating the population unable to access sufficient calories to sustain a healthy, active lifestyle. Of the people in countries included in the 2022 assessment, almost 119 million more people are estimated to be food insecure compared to 2021. The upward trend in international prices for wheat, coarse grains, and vegetable oils during the 2021/22 marketing year has been further exacerbated by Russia's military invasion of Ukraine, which reduced exports of the commodities from the Black Sea region. Domestic prices of major grains in 2022 are projected to rise in 70 of the 77 countries included in the assessment, with the North Africa region being the most affected. *********************************************************************************** RIPE Urges Equitable Payments Above Costs for Conservation in Farm Bill Platform Rural Investment to Protect our Environment, or RIPE, announced its 2023 Farm Bill platform Tuesday. Shaped by farmers and ranchers across the country who lead RIPE, the platform urges organizations to include a resolution, based on RIPE100 principles, in their farm bill platform. The resolution states, “A portion of new funds appropriated by Congress for climate-smart agriculture should be invested in a new conservation program offering a simple enrollment process that enables producers — including early adopters — to earn equitable payments above implementation costs, economic losses during transition to new practices and future climate policy costs.” The recommendation comes as Congress considers how to best encourage climate-smart agriculture through the farm bill, including how to allocate $18 billion in new funds from the Inflation Reduction Act. RIPE is a producer-led organization advancing RIPE100 — a conservation program that would pay producers $100 per acre or animal unit for stewardship, offering equitable payments above costs associated with practice implementation. *********************************************************************************** University Of Illinois to Develop Corn for Diverse Organic Systems Decades of corn breeding efforts emphasizing yield have contributed to modern hybrids with shallower and less complex root systems than their predecessors. Because the breeding and selection of most modern hybrids has taken place in environments with high nutrient concentrations, optimal weed control, and soil moisture conditions, hybrids perform best under high input systems. With help from a new four-year, $1.5 million grant from USDA's National Institute for Food and Agriculture, a team of researchers at the University of Illinois plans to study overlooked attributes of corn roots. The new grant investigates maize roots for organic/regenerative systems and explores ways to manipulate the agroecosystem to optimize carbon storage, resource use efficiency, and productivity. The researchers will work with farmers to learn how they use information about crop and soil conditions to balance management goals. In addition to optimizing yield, the team will work to develop corn roots that respond to changing soil conditions that are driven by management, like rotation length and diversity. *********************************************************************************** USDA Invests $14M to Strengthen Hispanic-serving Higher Education Programs In recognition of National Hispanic Heritage Month, the Department of Agriculture Tuesday announced an investment of $14 million to Hispanic-serving higher education institutions. The funding supports Hispanic student learning experiences in the agricultural and human science sectors. The investment will help attract, retain and graduate outstanding students from underrepresented communities. USDA Deputy Secretary Jewel Bronaugh says Hispanic-serving higher education institutions “are our trusted partners in preparing the next generation of agriculture leaders that more fully represent the many diverse populations and voices in America.” The funding is part of the National Institute of Food and Agriculture's Hispanic-serving Institutions Education Grants Program. The grant program aligns the education institutes' efforts to support the academic development and career attainment of underrepresented groups. As part of the program, USDA awarded funding to New Mexico State University – Las Cruces, Northern Arizona University – Flagstaff, and University of Puerto Rico – Carolina, among other Hispanic-serving higher education institutions.
| Rural Advocate News | Wednesday October 12, 2022 |
Wednesday Watch List Markets Outside markets will be interested in the Labor Department's 7:30 a.m. CDT report on U.S. producer prices Wednesday, followed by minutes from the latest Federal Reserve meeting at 1 p.m. Grain traders are anticipating USDA's next WASDE and Crop Production reports, both due out at 11 a.m. CDT with updates on row crop harvest estimates and USDA's views on several other hot topics. Weather also remains a prime area of interest with rain needed in many areas. Weather A strong cold front is moving through the middle of the country early Wednesday and producing a broken line of showers from northern Oklahoma into Wisconsin. Additional showers are forming ahead of the front from Alabama up to the Great Lakes. The front will continue to sweep southeast throughout the day with light to moderate rainfall. Some thunderstorms could be stronger in the Delta region Wednesday afternoon. A secondary front moving just behind this first one by about 12 to 18 hours is making for more isolated showers across the Western Corn Belt. Breezy conditions behind this front continue to create an increased fire risk, but it will generally be breezy most places today.
| Rural Advocate News | Tuesday October 11, 2022 |
National School Lunch Week: USDA Serves 224 Billion Since 1971 President Joe Biden recently declared this week as National School Lunch Week. The annual declaration highlights how school meals remain a vital lifeline, supplying well-balanced, free or low-cost meals to kids across the country since the program began in 1946. USDA’s Economic Research Service also released a report analyzing data on school lunch meals served. USDA found that between 1971 and 2021, the National School Lunch Program served about 224 billion meals. Of these meals, 126.4 billion were served for free or at a reduced price. The onset of the COVID-19 pandemic in March 2020 interrupted the operations of many schools through fiscal years 2020 and 2021. As a result, about 3.2 billion lunches were served through the program in 2020 and 2.2 billion in 2021, fewer than the 4.9 billion in 2019. The drop reflects the use of a USDA pandemic waiver allowing schools to serve meals through the Summer Food Service Program and the creation of the temporary Pandemic Electronic Benefit Transfer program. *********************************************************************************** Report: Plant-Based Products Appeal Wearing Off Plant-based food is a hot market, but plant-based meat alternative is not, according to a recent study by Deloitte Insights. The researchers say there are many contributing factors, including supply chain problems and a tough comparison point from an impressive prior year. However, data from Deloitte's Future of Fresh survey suggests three consumer-driven reasons for the current stagnation. The addressable market may be more limited than many thought. Dramatically improved taste in recent years unlocked new interest, but the portion of the population open to trying and repeat buying it may already have reached a saturation point. With inflation, fewer people are willing to pay a price premium. Willingness to pay a premium for plant-based alternative meat dropped nine percentage points from last year. Finally, some assumed benefits are being questioned by consumers. Even buyers of plant-based alternative meat are changing their views on some of its attributes. The biggest change is in health perceptions. *********************************************************************************** Mosaic Company Announces Hurricane Ian's Impact on its Fertilizer Producer The Mosaic Company recently announced that North American Phosphates was negatively impacted by damage caused by Hurricane Ian. Significant flooding and high winds were experienced throughout central Florida during the storm, and this caused modest damage to Mosaic Company facilities and supporting infrastructure. Early assessments indicate phosphate production could be down by approximately 200,000-250,000 metric tons, split roughly evenly between the third and fourth quarters of 2022. Repairs are expected to be completed over the next couple of weeks. In addition to production impacts, the timing of shipments was also affected by the storm. Phosphates sales volumes in the third quarter are now expected to total 1.60-1.65 million metric tons, as port and rail closures delayed late third quarter shipments to October. Mosaic plans to provide further updates when it reports third quarter results. The Mosaic company produces fertilizers in West Central Florida, where Hurricane Ian made landfall late last month. *********************************************************************************** NCC Announces 2023 Beltwide Cotton Conferences The National Cotton Council recently announced the 2023 Beltwide Cotton Conferences, set for January 10-12 at the New Orleans Marriott in New Orleans. The event offers attendees timely updates on the latest research, technology and issues affecting U.S. cotton production and processing. The BWCC, coordinated by the National Cotton Council, annually brings together the U.S. cotton industry to exchange information about cotton production. The BWCC's Consultants Conference will run the afternoon of January 10 and extend through the morning of January 11. The 12 cotton technical conferences will meet concurrently beginning on the morning of January 11 and conclude by noon on January 12. The Cotton Sustainability Conference will plan to focus on the U.S. Cotton Trust Protocol. The Cotton Engineering-Systems Conference is planning presentations on data analytics, robotics, remote sensing and unmanned aerial vehicles, among others. Those planning to attend are encouraged to register via the BWCC home page at www.cotton.org. *********************************************************************************** Walmart Foundation Teams Up with National FFA Foundation The Walmart Foundation Monday announced a $750,000 grant to the National FFA Foundation to incorporate sustainability principles in school education. The National FFA Foundation will leverage the expertise of the National FFA Organization to develop these educational resources. The National FFA Organization is working to ensure they meet the demand by educating the next generation of leaders. This generation will lead by example, act responsibly and create solutions to feed, clothe and fuel the world. National FFA Organization Chief Program Officer Christine White says, “The funding made available allows us to create new sustainability-focused education resources and programming that integrates current sustainable practices across multiple disciplines.” The focus of these resources will be to leverage the social influences of students by creating an inclusive program so all students enrolled in agricultural education can see how sustainability is meeting the needs of the present without compromising the ability of future generations to meet theirs. *********************************************************************************** National Average Fuel Prices Edge Higher Again The nation’s average gas price climbed for the third straight week, rising 13.8 cents from a week ago to $3.92 per gallon. The national average is up 22.5 cents from a month ago and 67.0 cents per gallon higher than a year ago. The national average price of diesel increased 18.0 cents in the last week to $5.04 per gallon. OPEC+ decided to cut oil production by two million barrels a day recently, causing an oil price surge of 20 percent, largely the reason for the increase in fuel prices. However, some refinery issues that increased prices appear to be improving in the West and Great Lakes. GasBuddy’s Patrick De Haan says, “prices in those two regions are likely to inch down, even with OPEC’s decision, as the drop in wholesale prices has offset the rise due to the production cut.” According to GasBuddy, U.S. retail gasoline demand fell last week by 0.3 percent.
| Rural Advocate News | Tuesday October 11, 2022 |
Tuesday Watch List Markets With Columbus Day behind, Tuesday may feel like a Monday as we will have USDA's weekly report of export inspections at 10 a.m. CDT and Crop Progress update at 3 p.m. Traders will continue to keep an eye on the latest weather forecasts and outside market news, especially from Ukraine. Trading in grains may turn slow as the day wears on, ahead of Wednesday's WASDE and Crop Production reports. Weather Scattered showers are moving northeast from Texas into Missouri and Illinois Tuesday morning as an upper-level disturbance moves out ahead of a cold front that is sweeping into the Northern Plains. That front will move through most of the northwestern Corn Belt from Nebraska through Minnesota by tonight. The front will produce scattered showers and some thunderstorms, some of which may be severe from southeast Nebraska up into Wisconsin Tuesday evening and night. Breezy winds will occur both ahead of and behind the front, which increases the fire danger risk for those trying to harvest. The front is the first of two that will sweep through the country over the next couple of days.
| Rural Advocate News | Monday October 10, 2022 |
August Pork Exports Higher While Beef Again Tops $1 Billion U.S. pork exports in August topped year-ago totals for the first time in 2022. USDA data compiled by the U.S. Meat Export Federation shows beef exports were slightly above the large volumes of last August and once again surpassed $1 billion in value. “We talk about the importance of developing a wide range of markets for U.S. red meat, and the August numbers are a great example of that,” says USMEF President and CEO Dan Halstrom. “Exports face significant headwinds in some key destinations. However, the emphasis on broad-based growth pays dividends and allows the overall export picture to remain positive.” Pork exports reached 226,300 metric tons, the largest total since November 2021, while the value rose four percent to $659 million. Beef exports topped 133,800 metric tons, up one percent from last year and the second-largest volume on record, with the export value at just under $1.04 billion. *********************************************************************************** Dairy Industry Groups Hold Press Conference on Labor Shortage Groups like the American Business Immigration Coalition Action, the National Milk Producers Federation, the National Council of Farmer Cooperatives, and many others involved in U.S. dairy held a press conference on labor shortages. The press conference took place during the World Dairy Expo to help call attention to the urgency of fixing the national farm labor shortage by passing new agriculture workforce solutions in the Senate. Brody Stapel, president of the Edge Dairy Farmer Cooperative Board, says dairy is a unique industry with different challenges than any other sector of agriculture. “Our cows must be milked twice a day, every day, and our raw product is extremely perishable,” he says. “That makes a steady workforce that much more important.” Walt Moore, president of the American Dairy Coalition, applauded the House of Representatives for passing the Farm Workforce Modernization Act and said it’s urgent that Senators from across the country do the same. *********************************************************************************** Drought Conditions Cover 321 Million Acres of Crops Drought intensified in many of the nation’s top corn-growing states during the past week. Nationally, 321.6 million acres of crops are experiencing some level of drought, while more than 31 million beef cattle across the country are living with drought. The latest drought monitor map shows a pocket of D2 severe drought emerging in Illinois with poor crop conditions and low hay yield in that region. While drought conditions in Texas have improved recently, pockets of D4 exceptional drought are still present in one percent of the state. D3 extreme drought covers 12 percent of Texas. Drought also intensified in Minnesota, which saw its first area of D3 extreme drought since last December. Wisconsin’s D2 severe drought in the northwest corner spread out to cover four percent of the state. A small part of Iowa is experiencing D4 exceptional drought, while five percent of the Hawkeye State is experiencing D3 extreme drought. *********************************************************************************** World Food Prices Drop in September The United Nations’ Food and Agriculture Organization says the Food Price Index averaged 136.3 points in September, 1.1 percent below August and the sixth-straight monthly decline. The decline was driven by a sharp fall in the international prices of vegetable oils and moderate decreases in those of sugar, meat, and dairy products. Together, that more than offset a rebound in the cereal price index, which averaged 147.8 points in September, a 1.5 percent rise from August. The Vegetable Oil Price Index averaged 152.6 points in September, down more than six percent from August month-on-month and the lowest level since February 2021. The Dairy Price Index averaged 142.5 points, down a half-percent from August and the third-consecutive monthly decline. However, that was still almost eight percent higher than the same time last year. The Sugar Price Index was 109.7 points, down 0.7 percent and its lowest level since July 2021. *********************************************************************************** Barge Operator Can’t Make Deliveries Due to Dry Mississippi River The largest barge operator in the U.S. told its customers last week that it won’t be able to make good on deliveries due to the shrinking Mississippi River. Bloomberg says Ingram Barge Company declared a force majeure in a letter to customers because of the “near-historic” low water along the Mississippi River. The river is the top way to get American grains exported to the world market. Drought has dropped the water level far enough that ships are beginning to run aground. The U.S. Coast Guard is responding to stuck vessels in at least two places, including Stack Island between Louisiana and Mississippi and upriver near Memphis. American Commercial Barge Line, another shipping company that uses the river to transport goods, says the drought is causing the most severe impact on navigation since 1988. The logjam comes at the worst time as grain harvest is in progress, and supplies will pile up. *********************************************************************************** NCGA: Collaboration Will Propel Climate Advancements Field to Market recently released a report titled Climate Action in U.S. Agriculture that showcases increasing climate commitments from its diverse membership sectors. The report essentially creates a clearinghouse of self-set sustainability and climate targets to give companies and organizations a one-stop shop to benchmark goals, drive performance, and promote accountability. Some of the key findings in the report include 73 percent of the members having public commitments on climate action, up from 68 percent in 2021. Of the 29 corporate members, 22 percent have set science-based targets for reducing emissions. Two of the five goals set by the National Corn Growers Association directly address climate concerns and are documented in the report. The goals are to reduce greenhouse gas emissions by 13 percent and increase energy efficiency by 13 percent. NCGA Sustainability Director Rachel Orf says the group is working to assist their growers in reaching those goals by 2030.
| Rural Advocate News | Monday October 10, 2022 |
Monday Watch List Markets Back from the weekend, federal offices and banks are closed Monday for Columbus Day. U.S. grain and livestock futures markets are open along with most other markets. USDA's weekly export inspections and crop progress reports will take place at their usual times, but on Tuesday instead of Monday. Traders will still pay attention to the latest weather forecasts and any pertinent news from the outside world, include weekend fighting in Ukraine. Weather Most of the country will be dry Monday, but scattered showers in West Texas will migrate northeast through Oklahoma later today and then into Missouri overnight. Showers will be welcome where they are received for those doing winter grains planting. Elsewhere in the country, conditions continue to favor the ongoing harvest.
| Rural Advocate News | Friday October 7, 2022 |
Biofuel Group Intervening in Legal Attack on RFS The Renewable Fuels Association recently filed a motion to intervene on behalf of the Environmental Protection Agency in a lawsuit over the Renewable Fuel Standard. The Center for Biological Diversity filed a lawsuit against the agency seeking a court review of EPA’s Renewable Volume Obligations under the RFS for compliance years 2020 through 2022. The RFA is intervening on behalf of the agency to help stress the importance of a strong Renewable Fuel Standard. The biofuel group’s goal is to “protect EPA’s substantial interest in the integrity of the RFS and investments RFA’s members have made in renewable fuels to support the program,” the motion states. “After years of mismanagement and setbacks by previous administrations, the Biden administration’s EPA is moving in the right direction on the RFS,” says RFA president and CEO Geoff Cooper. “We’re looking to intervene in the case so EPA can continue putting the RFS back on track.” *********************************************************************************** WTO: Contraction in Global Trade Growth During 2023 The World Trade Organization is predicting a slowdown in global trade growth next year. Reuters says the pullback is because of sharply-higher energy and food prices and rising interest rates that will limit import demand. The WTO also says global trade could contract further if the war in Ukraine worsens. For 2023, the organization sees trade growth at just one percent compared to a previous forecast of 3.4 percent growth. The WTO director-general says there’s a lot of unpredictability in its forecast, noting that the picture for 2023 is “considerably darker” and the risks for next year’s forecast were more toward the downside. Weather events hitting food-producing regions or damaging energy export infrastructure could further slow trade growth in 2023. The WTO is also warning countries against being tempted to put trade restrictions in place. The group says trade restrictions would only deepen inflationary pressures and reduce living standards. *********************************************************************************** Labor Department Tightens Some H-2A Rules The U.S. Department of Labor issued new rules for hiring H-2A workers that tighten housing and food standards. Industry Update Dot Com also says the new rules clarify that farm associations can be held liable for violations by individual farmers. The new rules canceled a series of broader changes proposed by the Trump administration, some of which were implemented in January 2020. The new rules will take effect on November 14, and the Labor Department says the rules will “strengthen worker protections, modernize and simplify the application process for H-2A and temporary labor certification, and ease the regulatory burden on employers.” The department emphasized in the rule that it doesn’t have legal authority to allow H-2A workers to work year-round in the country. H-2A workers are still limited to seasonal work only. The House-passed Agriculture Workforce Modernization Bill that stalled in the Senate would have allowed a limited number of year-round H-2A visas. *********************************************************************************** Minnesota Farmer is New NCGA President The National Corn Growers Association says Tom Haag (Hayg) of Eden Valley, Minnesota, is the organization’s next president. During an introductory news conference, Haag said the year is already shaping up to be a big one for America’s corn farmers. “There’s the next farm bill, the Next Generation Fuels Act, and that’s barely scratching the surface,” he says. “I’m focused on going all-in for corn farmers, but I can’t do it alone.” He also says it will take corn farmers working together to ensure their voice is heard in Washington, D.C., and to work on increasing demand for their product. “It’s hard to know in advance what other issues could come our way, but I am ready to tackle them together,” Haag says. Haag is a fourth-generation family farmer in south-central Minnesota and a former president of the Minnesota Corn Growers. He and his son Nathan raise 1,700 acres of corn and soybeans. *********************************************************************************** U.S. Cattlemen’s Association Applauds SEC Protection Bill More than 100 members of the U.S. House of Representatives introduced legislation that would shield agricultural producers from a climate disclosure rule proposed by the Securities and Exchange Commission. U.S. Cattlemen’s Association President Brooke Miller says, “U.S. farmers and ranchers absolutely need this exemption from the SEC’s climate disclosure proposal. Our producer-members already face nearly insurmountable proposed and ongoing regulatory burdens from an array of federal agencies.” Miller also says producers’ main job should be putting American beef on American plates, not managing the complex clerical duties of SEC compliance rules. The “Protect America’s Farmers from the SEC Act” prohibits the SEC from requiring an issuer of securities to disclose greenhouse gas emissions from upstream and downstream activities in the issuer’s value chain arising from a farm. The SEC’s proposed rule says registrants would be required to disclose information about their direct and indirect greenhouse gas emissions and climate-related risks. *********************************************************************************** Beef Industry Scholarship Applications Open The National Cattlemen’s Foundation is accepting applications for the 2023-2024 CME Group Beef Industry Scholarship. Ten scholarships of $1,500 each will be awarded to outstanding students pursuing beef industry careers. “We are pleased to continue our decades-long collaboration with the National Cattlemen’s Foundation and NCBA to support and inspire the next generation of food producers through this scholarship program,” says Tim Andriesen, CME Group managing director of agricultural products. Eligible applicants must be graduating high school seniors or full-time undergraduate students enrolled at a two- or four-year institution. The application process includes writing a one-page letter expressing career goals related to the beef industry, a 750-word essay describing an issue in the beef industry and offering solutions to this problem, or two letters of recommendation. The applicant or a family member must be a member of the National Cattlemen’s Beef Association. The deadline is November 11. For information, go to nationalcattlemensfoundation.org.
| Rural Advocate News | Friday October 7, 2022 |
Friday Watch List Markets At 7:30 a.m. CDT, the U.S. Labor Department will report on nonfarm payrolls and the unemployment rate, both for September. Federal Reserve officials will add their own public comments after the reports and at 2 p.m., there is a report on August consumer credit. Traders will continue to watch the latest weather forecasts, especially for any rain chances that would help fill the Mississippi River or ease drought in the western Plains. Weather A strong cold front has been pushing through the Corn Belt over the past day and very cold air is filling in behind it. Temperatures in the Northern Plains have dropped down into the 20s and lower 30s for most areas, producing killing frosts this morning. The colder air will spread through the Corn Belt Friday with more frosts and freezes expected through the weekend. Showers are limited to Nebraska behind the front and across west Texas into Oklahoma, where they are welcome for winter wheat establishment. Other areas will remain dry and offer good harvest conditions despite the cold.
| Rural Advocate News | Thursday October 6, 2022 |
Thune Introduces Bill to Improve Livestock Disaster Assistance Senators John Thune and Ben Ray Luján recently introduced the Livestock Disaster Assistance Improvement Act. The bipartisan legislation by the South Dakota Republican and New Mexico Democrat would improve the effectiveness and timeliness of multiple Department of Agriculture programs that assist farmers and ranchers in the aftermath of adverse weather events. The legislation would also provide USDA with direction to help improve the accuracy of the U.S. Drought Monitor, which triggers certain disaster programs. Thune says, “These common-sense updates to disaster programs would help provide greater and expedited assistance to farmers and ranchers when they need it the most.” The legislation would update the Emergency Conservation Program and Emergency Forest Restoration Program to clarify that state and federal grazing permit holders are eligible for these programs. The bill also allows the Farm Service Agency to waive the 30-day public comment period for Bureau of Land Management National Environmental Policy Act applications during a drought emergency, among other changes. *********************************************************************************** Senate Ag leadership Urges USDA to Expand Margin Protection Tools Leadership of the Senate Agriculture Committee recently urged the Department of Agriculture to expand margin protection tools under the Federal Crop Insurance Corporation. Citing record high input costs and extreme volatility in commodity prices, Senators Debbie Stabenow and John Boozman say the expansion would “allow producers the opportunity to familiarize themselves with these tools and better manage production cost risk by next fall.” Farmers are heading into the second consecutive planting season with elevated fertilizer and diesel prices while crop prices are getting more volatile. The letter to Agriculture Secretary Tom Vilsack urges margin protection, already in place for dairy, cattle and swine, and certain crops, should be thoughtfully expanded in a timely manner. As the Federal Crop Insurance Corporation considers expanding existing tools or developing new ones, the lawmakers say, "We urge the department to immediately prioritize additional and extensive risk management education for both producers and agents" on the policies currently available. *********************************************************************************** USDA Announces Farm and Food Workers Relief Program Organizations The Department of Agriculture this week announced 15 organizations to receive funding through the Farm and Food Workers Relief Grant Program. Agriculture Secretary Tom Vilsack says, "The grant recipients today will help us provide relief payments to workers across the country who kept food moving to our families during an especially challenging time." The program, administered by USDA's Agricultural Marketing Service, uses funding to provide relief to farmworkers and meatpacking workers who incurred pandemic-related health and safety costs. Funding is also set aside for three pilot programs to support grocery workers in recognition of their essential role in the pandemic response. These organizations are now preparing systems and will begin implementing outreach so that eligible farmworkers, meatpacking workers, and grocery workers may apply to these grant recipients to receive $600 payments soon. USDA anticipates that beneficiaries will be able to apply for funds from some of these recipients as soon as late November. *********************************************************************************** Iowa Ag Secretary: Atrazine Restrictions Will Negatively Impact Conservation Efforts Iowa Agriculture Secretary Mike Naig this week submitted comments to the Environmental Protection Agency regarding the proposed restrictions on atrazine. One of the most widely used herbicides in corn production, the proposed revisions by EPA would severely limit the use of atrazine. Secretary Naig tells the EPA that further restricting the use of atrazine will negatively impact pest resistance management and conservation efforts. In his comments, Naig says, "The EPA proposed picklist approach to managing atrazine is complicated, costly, and not feasible for Iowa farmers, landowners, and pesticide applicators." Further, he urges the EPA to listen to feedback from farmers and "adopt atrazine use requirements that are based on the best available science." In October 2020, EPA received a petition alleging that the Agency violated its duties under The Federal Insecticide, Fungicide and Rodenticide Act by issuing the atrazine reregistration without substantial evidence supporting the decision. The comment period on the proposal ends Friday. *********************************************************************************** Report: Global Farm Productivity Declining Global agricultural productivity growth is in steep decline, and current efforts to expand sustainable agriculture production to feed a growing global population are inadequate to deal with the challenges that the world faces. That's according to the 2022 Global Agricultural Productivity Report, produced by the College of Agriculture and Life Sciences at Virginia Tech. To sustainably produce food and agricultural products for more than nine billion people in 2050, agricultural productivity must increase an average of 1.73 percent annually. From 2011-2020, global agricultural productivity grew at an average of just 1.12 percent per year, a significant drop from the average growth rate of 1.99 percent from 2001-2010. Current efforts to accelerate productivity growth are inadequate, the climate will have a significant impact on production, and regional inequities around the world exacerbate the problem, the report says. Researcher Tom Thompson says, "We urgently need to reverse this trend so that we can improve food and nutrition security, sustainability, and resilience." *********************************************************************************** USDA Partnership Seeks Increase in Native American Homeownership The Department of Agriculture is providing $4 million in loans to expand the Native American Relending Pilot program. Two Native Community Development Financial Institutions will use the loan funds to expand homeownership opportunities for Native Americans living on tribal lands in South and North Dakota. Rural Development Undersecretary Xochitl (So-CHEEL) Torres Small says, “We are proud to partner with expert organizations that help us continue to drive economic security and prosperity for rural people.” USDA is providing the funding under the Single Family Housing Direct Loan program. Through this program, USDA provides loans to Native Community Development Financial Institutions, which relend the funds to eligible homebuyers to purchase homes on Native lands. USDA has helped nearly four million rural residents purchase homes since the passage of the Housing Act of 1949. Homeownership rates on Native American lands have historically been lower than those for other communities.
| Rural Advocate News | Thursday October 6, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as the weekly U.S. jobless claims and update of the U.S. Drought Monitor. At 9:30 a.m., the Energy Department has its weekly report of natural gas in storage. More Federal Reserve officials are set to speak and traders will continue to watch the latest weather forecasts. Weather A strong cold front moving through the Northern and Central Plains and Midwest on Thursday is causing temperatures to quickly fall behind it. Scattered frosts are occurring in the Red River Valley of the North Thursday morning, but will be much more widespread and colder Thursday night. Scattered showers are continuing over west Texas, which is a good sign for winter wheat establishment the next few days, but overall conditions continue to be good for harvest.
| Rural Advocate News | Wednesday October 5, 2022 |
Interest Rates Help Drive Farmer Sentiment Lower The Purdue University/CME Group Ag Economy Barometer’s farmer sentiment index dropped five points to 112 in September. The drop in farmer sentiment was primarily the result of producers’ weakened perception of current conditions. The Current Conditions Index dropped nine points to 109, and the Index of Future Expectations dropped three points to 113. Concerns about input costs and, in some cases, availability are key factors behind the relative weakness in this month’s farmer sentiment. A growing number of producers expressed concern about the impact of rising interest rates on their operations. High input costs were cited as the number one concern by 44 percent of the survey respondents, while 23 percent chose rising interest rates. Another 14 percent of respondents chose input availability as their biggest worry. The Farm Capital Investment Index also dropped as producers continue to indicate now is not a good time to make large investments in their farms. *********************************************************************************** U.S. Dairy Consumption is Rising Again The USDA’s annual report on per-capita dairy consumption saw an emphatic rise in domestic dairy demand. The level of demand rose from 655 pounds per person in 2020 to 667 pounds per person last year. That’s a total not seen since 1960, when it was 659 pounds, and is approaching 1959’s consumer total of 672 pounds. The last time America consumed this much dairy as they do today, Elvis was in the Army. While USDA data says fluid milk consumption has continued a slow decline, cheese continues to rise. American-style cheese consumption reached another record last year. Butter consumption is returning to levels unseen for several decades. Even as dairy consumption shifts, the overall trajectory is positive. The gain in 2021 is the seventh in the past eight years. The National Milk Producers Federation says despite more competition from non-dairy competitors, consumers continue to find dairy useful, preferable, and important. *********************************************************************************** Mexico’s Proposed GMO Corn Ban Will Cost U.S. Producers Billions A Mexican presidential decree to ban genetically modified corn in 2024 would have severe economic consequences for the U.S. and Mexican economies. A study from World Perspectives, Inc., says the move will result in a loss of billions for America’s farmers and higher prices for Mexican consumers. The net economic loss for the U.S. corn industry in the first year of the ban will be $3.56 billion. The U.S. ethanol industry, including DDGS, will incur a net loss of $521.5 million after accounting for gains from lower GM corn prices. Overall, the U.S. economy would lose $73.89 billion in economic output. During a ten-year forecast, the GM corn ban will increase the cost of corn by an average of 19 percent. That will inflate the cost of most foods and other goods for Mexicans. Poultry meat prices will jump by 67 percent because of a 13.7 percent increase in the cost of feed. *********************************************************************************** Southern Plains Economic Conditions Weakening Extremely dry conditions are putting a strain on the Fed’s Eleventh District. Ag bankers responding to a third-quarter survey report overall weaker economic conditions because of drought that’s pressuring agricultural production. The cotton crop and pastureland are especially hurting because of a lack of moisture. “The Southern Plains cotton crop is a disaster,” one survey participant says. “Almost all dryland crop has already been abandoned because of drought, and the irrigated crop still standing is pitiful.” Ag loan demand decreased during the third quarter of this year, the third-straight drop in the past three quarters. Loan renewals or extensions fell for the seventh-straight quarter, but the rate of loan repayments increased. Loan volume decreased for all categories compared with last year. Ranchland and dryland values rose during the quarter, while irrigated cropland values were steady. Cropland, dryland, and ranchland values increased the most in Texas, rising at least 10 percent year-over-year. *********************************************************************************** Smithfield Foods Sending 150,000 Servings of Food for Hurricane Relief Smithfield Foods is sending more than 37,000 pounds of food to Fort Myers, Florida, to help with recovery from the devastation of Hurricane Ian. The protein will be delivered to Mercy Chefs, a Virginia-based non-profit that deploys to disaster zones across America. They will help serve free chef-prepared, restaurant-quality, hot meals to victims, volunteers, and first responders in Fort Myers. “Our hearts go out to everyone in the path of this catastrophic hurricane,” says Jonathan Toms, senior community affairs manager with Smithfield. “We hope this food assistance brings some relief to the people of Fort Myers as they start down the long and difficult road to recovery.” Chef Gary LeBlanc, founder and CEO of Mercy Chefs, says, “Our continued partnership with Smithfield Foods is critical to feeding those who have lost everything. We’re honored to have the opportunity to serve those facing extreme devastation in the wake of Hurricane Ian.” *********************************************************************************** NSF, BASF Open Joint Scholarship Application The National Sorghum Foundation and BASF are accepting applications for a joint scholarship for $2,500 in tuition assistance for the 2022-2023 academic year. The award will be given out in January of 2023. “The National Sorghum Foundation has a longstanding commitment to developing the leadership potential of college students with a passion for improving the sorghum industry,” says newly appointed NSF Chair Jeff Dahlberg. “BASF has worked with us on this endeavor for many years, and we are excited to provide deserving students with the financial support they need to help them succeed.” Scholarship applicants must be the child or grandchild of a National Sorghum Producers member and be pursuing an undergraduate or graduate degree in an agriculturally-related curriculum. Applications should be postmarked by December 1. More information about the scholarship criteria and the application forms can be found online at SorghumGrowers.com. NSP is the organization representing U.S. sorghum producers across the country.
| Rural Advocate News | Wednesday October 5, 2022 |
Wednesday Watch List Markets The U.S. Commerce Department will report on the August trade deficit at 7:30 a.m. CDT Wednesday and provide USDA will more specific information about ag exports, which will be released later in the day. At 9:30 a.m., the Energy Department will release its weekly inventory data, including ethanol production. Traders will continue to monitor the latest weather forecasts, keenly aware the southwestern U.S. Plains and Lower Mississippi River desperately need rain. Weather A weak system is producing a few isolated showers as it moves through the Midwest on Wednesday. But the big story is the strong cold front that will be moving down from Canada and into the North-Central U.S. Wednesday night. Mild conditions will be felt for one more day across the country, but temperatures will plummet tonight across the Dakotas and Minnesota and continue to do so as the front pushes south through the country for the rest of the week. Some frosts will be possible far north tonight.
| Rural Advocate News | Tuesday October 4, 2022 |
NCBA Urges EPA to Pause WOTUS Rulemaking The National Cattlemen’s Beef Association called on the Environmental Protection Agency to pause their Waters of the United States rulemaking. The action follows Monday’s Supreme Court oral arguments in the case Sackett v. EPA, a case that will determine the EPA’s authority to regulate bodies of water under the Clean Water Act. NCBA’s Kaitlynn Glover says, "we call on the EPA to suspend their rulemaking until the outcome of the case is clear." In April, NCBA filed an amicus brief before the Supreme Court, calling for a new test for determining whether a water feature fell under the jurisdiction of the Clean Water Act. NCBA's argument would allow the government to protect substantial bodies of water while preventing overreach on small isolated agricultural water features. NCBA also commented on the Biden administration's proposed "Waters of the U.S." rule. NCBA calls for this rulemaking to halt until the Supreme Court issues a ruling in the Sackett v. EPA case. *********************************************************************************** Hurricane Ian Devastates Southwest Florida Agriculture The Florida Farm Bureau says farmers and ranchers are facing widespread destruction of crops, buildings and fencing from Hurricane Ian last week. Florida Farm Bureau is working with its members to assess the damage. The organization says significant fruit has been dropped from the trees in areas of the citrus belt. Fall vegetables once rooted are now lost. Not only has there been loss of human life, but livestock and dairy farms have been devastated by the wrath of Hurricane Ian. Farmers and ranchers are repairing greenhouses, structures, irrigation systems and other machinery and equipment throughout the region. Many farm families are still cutting their way through down trees and power lines and battling flooded roads and blown-out culverts to evaluate the damage. One thing is for certain, the organization says, is that "Florida farmers and ranchers remain unwavering in their commitment to produce the food and fiber that millions of Americans depend on." *********************************************************************************** NPPC Comments on Swine Inspection Program Federal Ruling The National Pork Producers Council late last week welcomed a federal ruling upholding the Department of Agriculture’s New Swine Inspection System. A federal judge in California upheld the program, which NPPC says incentivizes investment in new technologies while ensuring a safe supply of wholesome American pork. In a statement, the organization says, “Pork producers use science-based approaches to continuously improve and modernize their practices to ensure product quality and consistency and their workforce's health and safety." However, opponents who filed the lawsuit argue the rule greatly undermines the ability of federal inspectors to protect consumers from foodborne illnesses by fully inspecting hog carcasses, and instead allows plant employees with little training to take over several steps. The lawsuit was filed by Food & Water Watch, Center for Food Safety and the Humane Farming Association. Center for Food Safety senior attorney Amy van Saun says, “we can only hope we don't see more foodborne illness” because of the ruling. *********************************************************************************** USDA: H-2A Seasonal Worker Program Expanded Over Time USDA’s Economic Research Service Monday reported data that shows the H-2A season worker program has expanded over time. U.S. agricultural employers who anticipate a shortage of U.S. domestic workers can fill seasonal farm jobs with temporary foreign workers through the H-2A visa program. The Department of Labor certified around 317,000 temporary jobs in fiscal year 2021 under the H-2A visa program, more than six times the number certified in 2005. Only about 80 percent of the certified jobs in 2021 resulted in the issuance of a visa. The program has grown partly in response to current U.S. domestic workers finding jobs outside of U.S. agriculture and a drop in newly arrived immigrants who seek U.S. farm jobs. The H-2A program continued to expand in FY 2020 despite the jump in U.S. unemployment caused by lockdowns associated with the Coronavirus pandemic. Nationally, the average H-2A contract in FY 2020 offered 24 weeks of employment and an average hourly wage of $13. *********************************************************************************** Registration Open for 2023 American Farm Bureau Convention The American Farm Bureau Federation announced the opening of general registration Monday for the 2023 American Farm Bureau Convention. The convention will be held in-person January 6-11, 2023, in San Juan, Puerto Rico. AFBF assessed the status of San Juan and the convention facilities following Hurricane Fiona and determined that all are fully operational. AFBF President Zippy Duvall says, “This is your opportunity to gain insights about the future of agriculture, sharpen your skills and help define the agenda in Washington.” Workshop topics include the 2023 farm bill, policy updates, market outlooks, trade, the latest ag education resources and strategies for coping with farm stress. An exciting aspect of the convention is the opportunity for farmers and ranchers from the 50 states to see and learn about crops and agricultural practices unique to Puerto Rico. You can view the high-level convention agenda and register online to attend at annualconvention.fb.org. *********************************************************************************** Weekly Gas Prices up, Diesel Down For the second straight week, gas prices climbed higher, with the nation’s average gas price posting a rise of 11.1 cents from a week ago to $3.78 per gallon. The national average is up 0.4 cents from a month ago and 59.8 cents higher than a year ago. However, the national average price of diesel declined 2.9 cents in the last week and stands at $4.86 per gallon. GasBuddy’s Patrick De Haan says despite the higher gas prices, “areas of the Northeast and Gulf Coast have continued to see declines as the nation experiences sharp differences in trends between regions.” Prices continued to surge on the West Coast and Great Lakes last week. De Haan is hopeful prices will fall, but does caution that OPEC could decide to cut oil production by a million barrels as the global economy slows down. Meanwhile, U.S. retail gasoline demand fell 1.8 percent last week, according to GasBuddy.
| Rural Advocate News | Tuesday October 4, 2022 |
Tuesday Watch List Markets There are no significant reports Tuesday, but a few Federal Reserve officials will be speaking and could get attention. Traders will continue to monitor the latest weather forecasts, any hint of export sales and any news regarding Ukraine, China or Fed policy. Weather A system moving through the Northern Plains will bring some strings of showers across the Plains Tuesday and will get into Minnesota and Iowa Tuesday night. Mild to warm conditions will be felt across most of the country, and the combination of mostly dry conditions and warmth should continue good harvest conditions for most areas. Drought areas in the Plains may see some showers, but the drought will continue.
| Rural Advocate News | Monday October 3, 2022 |
Mississippi River Shipping Rates Hit Record High Harvest season is in high gear, and U.S. farmers have another supply chain challenge. Bloomberg says there aren’t enough barges moving goods up and down the shrinking Mississippi River. Drought is drying a vital American waterway, which means a lot less room for vessels moving corn and soybeans from farms to U.S. ports. At one point last week, barge rates hit $49.88 per ton. That’s the highest price on record and a 50 percent jump from 2021 shipping rates. More than half of the corn and soybean shipments heading to world markets travel along the Mississippi. The barge problems are hitting at harvest when the supplies of grain will be at their largest. It also follows a challenging growing season filled with weather problems and soaring inflation for things like fuel and fertilizer. Fertilizers needed by producers to grow grain are also at risk as they ship along the Mississippi. *********************************************************************************** FTC Sues Companies Over Pay-To-Block Scheme The Federal Trade Commission and a group of 10 state attorneys general filed a complaint in federal court against pesticide makers Syngenta Crop Protection and Corteva. The complaint accuses the manufacturers of allegedly paying distributors to block competitors from selling their cheaper generic products to farmers. The complaint says the firms run “loyalty programs” in which distributors only get paid if they limit business with competing manufacturers. Cutting off the competition allowed the defendants to inflate their prices and force American farmers to spend millions of dollars more on their products. The complaint seeks to shut down the illegal pay-to-block scheme and restore competition to affected markets. “The FTC is suing to stop Syngenta and Corteva from maintaining their monopolies through harmful tactics that have jacked up pesticide prices for farmers,” says FTC Chair Lina Khan. “By paying to block generic producers from the market, these companies deprived farmers of cheaper options.” *********************************************************************************** Logan Confirmed to Farm Credit Administration Board Senate Ag Chair Debbie Stabenow and Ranking Member John Boozman announced that the Senate confirmed Vincent Logan to the Farm Credit Administration Board. “His background in both the agriculture and financial sectors makes him well-qualified for this role,” Stabenow says. “He will be the first Native American to serve as a board member.” Ranking Member Boozman says he’s happy to see Logan’s confirmation. “His experience and expertise will help guide a mission that’s critical to the success of our family farmers, ranchers, and agriculture businesses. I look forward to working with him to provide dependable credit sources.” Farm Credit Council President and CEO Todd Van Hoose says they congratulate Mr. Logan on his confirmation and look forward to working with him. “He’s well-qualified to serve on the FCA Board, and we appreciate the Senate Agriculture Committee and the full Senate’s swift action to fill the board seat,” Van Hoose says. *********************************************************************************** NMPF on Short-Term Infant Formula Imports The National Milk Producers Federation says the temporary, short-term lifting of restrictions on infant formula imports to address the rare infant formula shortage is a positive move to fill the supply gap. “We did not oppose the just-passed Bulk Infant Formula to Retail Shelves Act given its targeted volume and limited time frame,” says NMPF President and CEO Jim Mulhern. “Those guardrails are necessary to ensure that imports temporarily complement U.S. supplies rather than displace existing available dairy formula ingredients.” However, Mulhern says his group “emphatically” opposes efforts that would create long-term dependence on foreign suppliers for a critical nutritional food. “The focus must be to develop additional production in the U.S. necessary to ensure that this crisis isn’t repeated,” Mulhern adds. “As COVID taught us, only a robust domestic supply chain with American workers and U.S. sources of production can best protect families from disruptions of critically-needed products.” *********************************************************************************** Korean Grain Importers will View Corn Crop in Four States A team of feed grain and DDGS buyers from Korea will be in the U.S. in early October to take a close look at the corn crop. The team, which includes a Korean government official, will get to better understand grain quality control and export systems in Washington, Nebraska, Iowa, and Illinois. The team is the first of 21 groups with participants from 51 countries that will travel to the U.S. as a lead-up to the U.S. Grains Council’s biggest event, the Export Exchange. Export Exchange is a biennial educational and trade forum for U.S. feed grains and will host more than 400 international buyers and end-users. “The Council is delighted to hold the Export Exchange again for the first time since 2018,” says USGC President and CEO Ryan LeGrand. “It’s a great opportunity for foreign buyers to create connections with U.S. producers.” Export Exchange is in Minneapolis, Minnesota, October 12-14. *********************************************************************************** FSA to Consider Eliminating District Committees Farm Service Agency Administrator Zach Ducheneaux told lawmakers late last week that he’ll give serious consideration to the recommendation to replace the FSA’s district committee system. Industry Update Dot Com says the USDA’s Equities Commission recently made the recommendation. However, Ducheneaux says the district committee system is an opportunity for producers to be an important part of the process, but it’s also important for those committees to be representatives of those who produce. The administrator says the district committees evaluate regional prices and determine producers’ rights, but they don’t have the right to influence the loan approval process. “We’ve been involved at every opportunity with members of the Equity Commission,” he says. “But we have to understand that we’re working to overcome the decades and generations when it was members of the county commissions that considered the loan applications.” Former FSA officials also say the county committees are important to the FSA’s mission.
| Rural Advocate News | Monday October 3, 2022 |
Monday Market Watch Markets Back from the weekend, traders have a long list of concerns to check on, including the latest weather forecasts, events in Ukraine, Mississippi River levels, energy supplies in Europe and economic concerns in the U.S. The Institute of Supply Management's index of U.S. manufacturing for September is due out at 9 a.m. CDT, followed by USDA's weekly report of export inspections. USDA's Crop Progress report is due out at 3 p.m. Weather A system that has been stuck in the northern Rockies since late last week continues to produce some isolated shower across the Northern Plains and central High Plains on Monday. Only limited areas will see anything more than light rain. The rest of the country is mild and dry, favorable for the continued harvest. Drought continues to affect winter wheat areas, however, with limited soil moisture in the Pacific Northwest, southwestern Plains, and northern Delta into the Midwest.
| Rural Advocate News | Friday September 30, 2022 |
Biodiesel to Turbo Charge American Biofuel Growth A new report from CoBank says the recent investment surge in U.S. renewable diesel production capacity is likely to ignite a period of growth and transition for the biofuels industry. “The outlook for biofuels is good as the U.S. and other developed countries embrace renewable liquid transportation fuels as a solution to reduce greenhouse gas emissions,” says Ken Zuckerberg, lead grain and farm supply economist for CoBank. “Renewable diesel offers the most intriguing opportunity in the biofuels space because the growth potential is extraordinary.” Several industry stakeholders are planning to build new soybean crush and refineries during the next two years, which would increase U.S. renewable diesel production capacity to 6.5 billion gallons by 2030. Soybean oil is the most common feedstock for producing renewable diesel. CoBank says U.S. soybean acreage would need to grow by 17.9 million acres to fill the supply gap created by the additional crush and refinery projects. *********************************************************************************** USDA Expands PACE Coverage USDA says it has expanded its Post-Application Coverage Endorsement (PACE) insurance option for corn farmers who “split-apply” nitrogen on their crops. The coverage now includes most counties in Iowa, Illinois, Minnesota, and Wisconsin, where non-irrigate corn is insurable. USDA rolled out PACE earlier this year to support stewardship of fertilizer and will continue to offer it in select counties of Indiana, Kansas, Michigan, Nebraska, Ohio, and the Dakotas. “PACE provides an additional risk management tool for corn growers,” says NCGA President Chris Edgington. PACE provides coverage for the projected yield lost when producers are unable to apply the post-nitrogen application due to field conditions created by the weather during the V3 through V10 stages. “We’re always working to offer risk management options and opportunities in the best interest of producers and their operations, and that also support and encourage environmental and climate-smart practices,” says Risk Management Agency Administrator Marcia Bunger. *********************************************************************************** Smithfield to Pay $75 Million to Settle Price-Fixing Suit Smithfield Foods agreed to pay $75 million to settle a price-fixing lawsuit. Reuters says consumers accused the meat producer and several competitors of conspiring to inflate prices in the U.S. pork market by limiting supply. Smithfield spokesman Jim Monroe says the company denied liability in settling, and that the accord reduces the distraction, risk, and cost of protracted litigation. “The agreement also limits a substantial portion of Smithfield’s remaining liability in the nationwide case,” he says. In other litigation, Smithfield previously reached settlements worth $83 million with direct purchasers and $42 million with commercial purchasers, including restaurants. Some of the other defendants include Hormel Foods, Tyson Foods, and data provider Agri Stats, Inc. Smithfield agreed to provide cooperation that the plaintiffs’ lawyers say will strengthen their cases against the remaining defendants. Smithfield is based in Virginia and owned by Hong Kong-listed WH Group, which calls itself the world’s largest pork company. *********************************************************************************** Ag Groups React to White House Conference on Hunger Several U.S. ag groups and stakeholders took part in the White House Conference on Hunger, Nutrition, and Health. Jim Mulhern president and CEO of the National Milk Producers Federation, thanked the White House for inviting him to the conference. “We know from decades of working in this area that dairy products and the nutrients they provide will be vital to reaching the conference goals,” he says. Colin Woodall, CEO of the National Cattlemen’s Beef Association, also attending the conference. “We will continue to highlight beef’s role as an excellent source of protein for all ages, especially those Americans lacking iron and other essential beef nutrients,” Woodall says. National Farmers Union President Rob Larew says they’re standing together to end hunger in the United States. “Access to safe and nutritious food is a basic human right, so we’re advocating for strong federal nutrition programs that emphasize fresh and locally-produced food,” Larew says. *********************************************************************************** NCGA Selects Eight for Research Ambassador Program The National Corn Growers Association announced it has picked eight new research ambassadors for the 2022-2023 academic year. They are all secondary students from some of the nation’s top universities, including the University of Minnesota, Purdue University, the University of Wisconsin-Madison, and others. It’s the second year of the program which NCGA is building momentum. The program was developed and funded by the NCGA Sustainable Ag Research Action team. The objective is to build a network of future leaders in the ag sector. Ambassadors must show academic excellence, leadership potential, and be involved in research relevant to corn production. “We’re continuing to build bridges between the research lab and the farm field,” says Sustainable Ag Research Action Team Chair Jason Lewis. Ambassadors receive a financial reward of $2,500, as well as up to $750 for registration and travel reimbursement to participate in research conferences, and fully-funded travel to NCGA events. *********************************************************************************** Beef Campaign Takes Fine Dining to New Places Colorado Angus rancher Ty Walter recently rock climbed a 100-foot high ledge to enjoy fine dining with a celebrity. In a cliff-side setting, Walter joined actor, comedian, and host Joel McHale to talk about cattle production and what makes Certified Angus Beef® brand products consistently superior, all while enjoying a four-course meal at an elevation of 8,500 feet. After a two-mile hike, the pair rock climbed up the ledge to help promote the Certified Angus Beef brand. There, Walter and McHale enjoyed the four-course meal prepared by CAB Executive Chef Ashley Brennemen. “Every meal doesn’t have to be this extreme, but we wanted to showcase Certified Angus Beef products in a way that would inspire people to create their own flavor adventure,” Brenneman says. Walter adds that, “The thing I was most nervous about was dropping my fork.” The adventure is available on the Certified Angus Beef Brand Test Kitchen YouTube Channel.
| Rural Advocate News | Friday September 30, 2022 |
Friday Watch List Markets Reports on U.S. personal incomes and consumer spending for August are due out at 7:30 a.m. CDT Friday, followed by the University of Michigan's index of U.S. consumer sentiment at 9 a.m. More Federal Reserve officials speak again Friday. At 11 a.m., USDA will release its quarterly Grain Stocks report and Small Grains 2022 Summary. Traders will also keep an eye on outside markets and follow the latest weather forecasts. Weather Ian, which strengthened back up to hurricane strength Thursday night, will move onshore over South Carolina Friday afternoon. Heavy rain from the system is already pouring into the Carolinas. Far eastern Georgia and Virginia will see rain from the system as well. A weaker disturbance has parked itself over the northern Rockies and is spreading isolated showers through the Northern Plains, and has also made for a few showers out into Minnesota and a few sprinkles cannot be ruled out for portions of the Central Plains as well. Otherwise, harvest conditions are quite good with rising temperatures for most agricultural areas.
| Rural Advocate News | Thursday September 29, 2022 |
Stabenow Addresses White House Hunger Conference Senate Agriculture Committee Chair Debbie Stabenow addressed the White House Conference on Hunger, Nutrition, and Health Wednesday. The Michigan Democrat was part of a panel with U.S. Secretary of Health and Human Services Xavier Becerra, House Appropriations Committee Chairwoman Rosa DeLauro and New York City Mayor Eric Adams. Stabenow says, "As long as we have hunger and food insecurity in America, we have work to do, and as Chairwoman, I'm confident that the strong anti-hunger and nutrition framework we've built can help to tackle it." In conjunction with the White House Conference, Stabenow released a fact sheet detailing the Committee's recent work on anti-hunger and nutrition issues. That work includes a 21 percent increase in Supplemental Nutrition Assistance Program benefits, investments in the food bank network and focusing on nutrition education, among other topics. Stabenow adds now is the time to build on the progress to eliminate hunger and commit to a healthier America. *********************************************************************************** FDA Proposes Updated Definition of ‘Healthy’ Claim on Food Packages The Food and Drug Administration Wednesday proposed updated criteria for labeling foods with the nutrient content claim "healthy" on their packaging. The proposal comes the same day as the White House Conference on Hunger, Nutrition, and Health. The rule would align the definition of the “healthy” claim with current nutrition science, the updated Nutrition Facts label and the current Dietary Guidelines for Americans. FDA says more than 80 percent of people in the U.S. aren’t eating enough vegetables, fruit and dairy. And most people consume too much added sugars, saturated fat and sodium. The proposed rule is part of the agency’s ongoing commitment to helping consumers improve nutrition and dietary patterns to help reduce the burden of chronic disease. The proposed rule would update the “healthy” claim definition to better account for how all the nutrients in various food groups contribute and may work synergistically to create healthy dietary patterns and improve health. *********************************************************************************** Atrazine Proposal Comment Deadline Nears The deadline to submit comments on the Environmental Protection Agency’s atrazine proposal is next Friday. The National Corn Growers Association is encouraging growers to join its call-to-action and submit comments to the EPA on the important role atrazine plays in their work. The call-to-action was launched over the summer as EPA began revising its registration for atrazine. EPA is proposing a level of concern for atrazine at 3.4 parts per billion, down from the current level of 15 parts per billion. The move would significantly impair the effective use of atrazine on farms, according to NCGA. Brooke S. Appleton, NCGA vice president of public policy, says, “Reducing the effectiveness of this important herbicide will hinder the work of farmers and turn the clock back on our conservation efforts.” Since the organization launched the call to action on July 20, more than 3,000 growers have commented. EPA’s open comment period closes on October 7. You can submit comments via ncga.com. *********************************************************************************** Grassley, Brown Propose Banning Foreign Individuals from Obtaining U.S. Farm Credit Senators Chuck Grassley and Sherrod Brown introduced legislation this week to prevent foreign individuals from obtaining credit and financial services through the Farm Credit System. The Iowa Republican and Ohio Democrat content that currently, certain foreign individuals and entities are eligible to receive credit through this government-sponsored enterprise. Grassley states, “The expansion of foreign-owned farmland is a justified cause for concern among many family farmers and ranchers. Brown adds, “American taxpayer dollars should not be used as a financing tool for foreign governments to undermine our national security and take our family farms.” FCS was established in 1916 to provide credit to rural areas when commercial lenders were avoiding farm loans. It is mandated and limited by statute to serve agriculture. In 2021, FCS had a portfolio of roughly $210 billion in farm loans. Since 1997, regulations have allowed FCS associations to extend credit to certain foreign nationals who are not permanent residents of the United States and to foreign-owned entities. *********************************************************************************** USDA to Invest $8 Million to Expand Monitoring of Soil Carbon The Department of Agriculture plans to invest $8 million to support and expand carbon monitoring in soils. The investment also supports the assessment of how climate-smart practices affect carbon sequestration. The investment is part of USDA's efforts to build out a national soil carbon monitoring network, which was kicked off with soil carbon monitoring on Conservation Reserve Program acres in 2021. USDA's Natural Resources Conservation Service requests proposals for regional projects focused on soil organic carbon stock monitoring, which are due November 28, 2022. The investment in building out the soil carbon monitoring network is part of USDA's comprehensive effort to address climate change through climate-smart agriculture and forestry. NRCS Chief Terry Cosby says, “Soil health management practices and activities are a tremendous part of our strategy when it comes to climate-smart agriculture and forestry.” Additional information is available in the notice of funding, which will appear on grants.gov *********************************************************************************** U.S. Red Meat Industry Commemorates 45 Years in Japan Leaders representing the U.S. red meat industry recently traveled to Tokyo to commemorate the 45th anniversary of the inaugural U.S. Meat Export Federation office, which opened in Tokyo in 1977. Japan has consistently been a top customer and is the leading international market for U.S. red meat, purchasing nearly $4.1 billion in 2021. Through July 2022, U.S. red meat exports to Japan reached $2.4 billion. The U.S.-Japan trade partnership is highly valued by those in the U.S. pork, beef and lamb industries. While in Tokyo for meetings, market visits and a celebration event attended by 200 importers, distributors, trade media and U.S. exporters, industry representatives expressed appreciation for the business relationships developed over the past 45 years and expressed a commitment to serve the Japanese market well into the future. The group traveling to Japan included representatives of the U.S. beef and grain industries, meeting with key leaders, traveling to local grocery stores and meeting with influencers.
| Rural Advocate News | Thursday September 29, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, an update of second-quarter U.S. GDP and an update of the U.S. Drought Monitor. At 9:30 a.m., the U.S. Energy Department's weekly report of natural gas storage will be released. USDA's quarterly Hogs and Pigs report is set for 2 p.m. with expectations for an annual inventory decline of 1.6%. Weather Cold temperatures are producing frosts again this morning in the Midwest from eastern Iowa into Michigan. Outside of the cold though it is rather dry with mostly good harvest weather across much of the country. Ian has been downgraded to a tropical storm overnight as it pushed across the Florida Peninsula with heavy rainfall. The storm will spend the day offshore before pushing north toward South Carolina. Rains will begin to impact the Southeast Coast tonight with heavy rain expected for Friday and Saturday from eastern Georgia up through Virginia that will impact harvest and may cause flood damage.
| Rural Advocate News | Wednesday September 28, 2022 |
White House Hunger Conference Today (Wednesday) The long-awaited White House Conference on Hunger, Nutrition and Health convenes today (Wednesday). The goal of the conference is to end hunger and increase healthy eating and physical activity by 2030. The White House Tuesday released its national strategy with actions the federal government will take to drive hunger solutions. Pillars of the strategy include improving food access and affordability, integrating nutrition and health, empowering consumers to make healthy choices, supporting physical activity and enhancing nutrition and food security research. President Joe Biden says, “This important conference and the commitment to a national strategy on ending hunger and healthier eating will build on the research and knowledge we now have to make America truly a stronger, healthier nation.” Agriculture Secretary Tom Vilsack added, “The Strategy lays out big goals, and we need everyone - local, state, and tribal governments, Congress, private companies, nonprofit organizations, and everyday citizens - to work together to achieve them.” *********************************************************************************** USDA Funding Seeks More US Fertilizer Production A new federal grant program announced Tuesday seeks to increase American-made fertilizer production. Agriculture Secretary Tom Vilsack announced the $500 million in grants, intended to spur competition in the fertilizer sector and combat price hikes on U.S. farmers. The Fertilizer Production Expansion Program is part of a government-wide effort to promote competition in agricultural markets. The Commodity Credit Corporation grants will support independent, innovative and sustainable American fertilizer production to supply American farmers. Funds also will expand the manufacturing and processing of fertilizer and nutrient alternatives in the U.S. and its territories. USDA plans for a 45-day application window for applicants to receive priority for projects that increase the availability of fertilizer and nutrient alternatives for farmers to use in crop years 2023 or 2024. USDA will also offer an extended application window for financial assistance to significantly increase American-made fertilizer production to spur competition and combat price hikes. *********************************************************************************** Ongoing Western Drought Most Intense in 20 Years USDA’s Economic Research Service Tuesday reported the ongoing Western drought is the most extreme drought in the region since 2000. As of September 19, 2022, the U.S. Drought Monitor classified more than 18 percent of land in the Western States as experiencing extreme or exceptional drought. In July of this year, more than 32 percent of land was in those categories. Drought conditions in the Western States gradually subsided in the latter months of 2021 but began intensifying again during the first half of 2022. The U.S. Drought Monitor categorizes drought in a region according to soil moisture, streamflow, and precipitation levels. Regional designations are primarily based on historical weather patterns. For agriculture, drought can mean diminished crop and livestock outputs, as well as reduced farm profitability. Drought also reduces the quantity of snowpack and streamflow available for diversions to irrigated agricultural land. These impacts can reverberate throughout the local, regional, and national economies. *********************************************************************************** Funds Available for On-farm Storage Damaged by Recent Natural Disasters The Department of Agriculture this week announced funding to help farmers rebuild on-farm storage systems impacted by recent natural disasters. USDA will make $20 million available to farmers in Kentucky, Minnesota, South Dakota and surrounding areas to rebuild damaged storage facilities damaged in 2021 and 2022 by natural disaster events. The assistance will help producers who were hard-hit by disasters and are currently struggling with a lack of available grain storage have the resources they need as they head into the 2022 crop harvest. The assistance from USDA's Farm Service Agency will help producers affected by the December 2021 tornadoes that passed through eleven counties in Kentucky, as well as producers in Minnesota and South Dakota affected by derechos in May 2022 and July 2022. Similar to other USDA cost-share programs, USDA anticipates that the funds will cover 75 percent of the eligible expenses associated with grain storage capacity costs with building grain storage capacity or purchasing equipment. *********************************************************************************** AFT Announces Solar Energy Development Partnership American Farmland Trust Tuesday announced a partnership with Edelen Renewables and Arcadia. The Farmers Powering Communities seeks to combat climate change through solar energy development while protecting America’s farmland and ranchland. The partnership provides more farmers with the opportunity for a new revenue stream and brings renewable energy to communities where it has not yet been available. Farmers Powering Communities will advance community solar projects of 25 to 50 acres to provide green energy to those who do not have access to rooftop solar – connecting them with local solar farms and bringing resiliency to more Americans. Community solar projects bridge the gap, connecting people to shared solar facilities. The partnership will identify the best land for new solar farms, establish installations and link them to local energy providers who will provide the power to residents at costs lower than the market average. Development will begin in 2023 across a number of states that have active community solar programs. *********************************************************************************** USDA NASS, NASDA, Celebrate 50 Year Partnership USDA's National Agricultural Statistics Service and the National Association of State Departments of Agriculture celebrate 50 years of working together. The partnership provides timely, accurate and useful statistics in service to U.S. agriculture. NASS and NASDA are celebrating the anniversary during the NASDA annual meeting this week in Saratoga Springs, New York. NASS Administrator Hubert Hamer says, “NASDA enumerators do an incredible service for NASS, the producers, our nation, and the world.” NASS works closely with state departments of agriculture to support their agricultural statistics needs and reduce duplication with federal programs. NASDA provides vital, grassroots support for the NASS mission by employing thousands of part-time enumerators who assist farmers and ranchers with ag census and survey responses through telephone and in-person interviews. The partnership allows NASDA staff to focus on data collection, which is essential for accurate data reports, while NASS staff concentrate on survey integrity and data analysis.
| Rural Advocate News | Wednesday September 28, 2022 |
Wednesday Watch List Markets An index of pending U.S. homes sales in August is due out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m. More Federal Reserve officials will also be speaking at public appearances and are apt to get attention. Traders will continue to watch Hurricane Ian and the latest weather forecasts and are still nervous about the direction of outside markets. Weather Hurricane Ian, a powerful Category 4 storm, is set to move into west-central Florida during the day Wednesday and Wednesday night. In addition to the strong winds from the storm center, the hurricane will be producing heavy, flooding rains as well. Colder air has settled into the Midwest and frosts are occurring in the Upper Midwest states Wednesday morning. Some very isolated lake-induced showers may continue in a couple of spots on the southern end of the Great Lakes, but most areas will remain dry with good harvest conditions continuing.
| Rural Advocate News | Tuesday September 27, 2022 |
USDA Announces Action to Spur Competition, Protect Producers and Reduce Costs The Biden administration Monday announced two new Department of Agriculture efforts to support fair and competitive meat and poultry markets. The efforts include publishing the proposed Inclusive Competition and Market Integrity Rules Under the Packers and Stockyards Act to protect farmers and ranchers from abuse, and a new $15 million Agricultural Competition Challenge to ramp up collaboration with the State Attorneys General on enforcement of competition laws, such as laws against price-fixing. The two efforts come from the White House Competition Council, which held a meeting Monday. Agriculture Secretary Tom Vilsack says, "USDA is focused on building new, fairer, and more resilient markets, protecting producers, and reducing food costs." Earlier this year, USDA and the Department of Justice announced their commitment to work closely together to effectively enforce federal competition laws, including by launching the FarmerFairness.gov complaint portal for reporting suspected violations of federal competition law. *********************************************************************************** USMCA Partners Host Environmental Committee Meeting Officials from the United States, Mexico and Canada met last week as part of the U.S.-Mexico-Canada Agreement’s Environment Committee. The committee was established as part of the USMCA to oversee the Environment Chapter's implementation and provide a forum to discuss and review chapter implementation. At the meeting, the officials discussed progress and challenges faced in implementing the environmental obligations since the Agreement's entry into force in 2020. The committee also discussed follow-up items from the first Committee meeting, including the findings of a mapping exercise to identify gaps and opportunities for trilateral collaboration for implementing Chapter 24 commitments, recognizing the need to ensure complementarity and avoid duplication with efforts already underway by the Commission for Environmental Cooperation. In addition, the committee held a public session to share information and hear from stakeholders from Canada, Mexico, and the United States regarding the implementation of Chapter 24. *********************************************************************************** Insured Acreages Vary Widely Across Fruit and Nut Specialty Crops USDA's Economic Research Service Monday reported insured acres of specialty crops vary widely across specific crop types. USDA’s Risk Management Agency offers Federal Crop Insurance Program products to cover specialty crops in counties with enough data available to offer a sound insurance product. Using cherries as an example, crop insurance is available for cherry growers who operate in counties with a high number of cherry acres. Because of this, farmers used federal crop insurance to cover about 65 percent of all cherry acres. Cherry growers outside of those counties used the USDA Farm Noninsured Crop Disaster Assistance Program to cover about 20 percent of all cherry acres, leaving only 15 percent of acres not covered by any risk management program. For some crops, however, federal risk management programs covered only a small portion of acres. Kiwifruits and strawberries, for example, had less than 15 percent of acres covered, while hazelnuts had less than one percent. *********************************************************************************** AEM Hosts Record-breaking DC Fly-in The Association of Equipment Manufacturers Monday reported a record attendance for its Washington, D.C. fly-in last week. Representing equipment manufacturers and suppliers from across the country, participants met with 70 lawmakers. The group advocated for pro-manufacturing policies that will help equipment manufacturers succeed in the United States and around the world. AEM’s Kip Eideberg says, “As Congress continues its legislative business through the end of the year, we will continue to remind lawmakers that they need to reach across the aisle and work to move our country forward.” AEM members advocated for domestic supply chain investments, precision agriculture incentives to support climate-smart practices, and a grant program that supports workforce development. AEM says tariffs continue to hurt the equipment manufacturing industry. AEM asked lawmakers to establish a permanent Section 301 tariff exclusion process so American manufacturers can petition the Office of the U.S. Trade Representative to remove tariffs needed for domestic manufacturing and the national economy. *********************************************************************************** Merck Animal Health to Acquire Virtual Fencing Developer Merck Animal Health recently announced an agreement to acquire Vence, an innovator in virtual fencing for rotational grazing and livestock management. Vence provides enhanced technology for producers and ranchers to track, monitor and manage the movement of cattle through a high-tech platform of virtual fencing solutions. Using a computer or smartphone, customers can manage cattle movement and facilitate rotational grazing. Vence's virtual fencing technology can reduce the need for fencing to subdivide pastures and allows producers and ranchers to manage their cattle and grass inventory, while reducing costs of labor and fencing materials. Merck Animal Health president Rick DeLuca says, “Vence is a natural fit with Merck Animal Health's growing portfolio of animal intelligence products that include identification, traceability and monitoring products.” The acquisition is expected to be completed in the third quarter of 2022, subject to closing conditions. Vence is available in the United States and parts of Australia. *********************************************************************************** Mixed Week for Fuel Prices Ending the 14-week stretch of gas prices declining, the nation's average gas price posted a rise of 3.2 cents from a week ago to $3.67 per gallon. The national average is down 17.5 cents from a month ago but 49.3 cents higher than a year ago. The national average diesel price declined 5.1 cents the last week and stands at $4.88 per gallon. Refinery snags in some areas of the country contribute to wild fluctuations as areas of the West Coast, Pacific Northwest, Great Lakes and Plains have seen significant refinery issues leading to supply challenges. However, the Northeast and Gulf Coast continue to see normal activity at refineries and prices there have dropped. The disconnect between regions grows larger and will likely remain abnormal for the next few weeks. Gas Buddy’s Patrick De Haan says, “A slew of unexpected refinery disruptions, including fires and routine maintenance, have seemingly all happened in a short span of time.”
| Rural Advocate News | Tuesday September 27, 2022 |
Tuesday Watch List Markets A report on U.S. durable goods orders in August will be out at 7:30 a.m. CDT Tuesday, followed by August new home sales and the Conference Board's index of U.S. consumer confidence for September at 9 a.m. Several Fed officials are also scheduled to speak throughout the day and will likely get attention. Traders will keep an eye on the latest weather forecasts and news from Ukraine, but are most jumpy about Fed policy and prospects for higher interest rates ahead. Weather A shot of colder air is settling into the Midwest on Tuesday. Some limited frosts are noted around northern Minnesota into northern Wisconsin, but most areas are remaining on the warm side of freezing. Some showers are still hanging around the Great Lakes. Otherwise, dry conditions continue across most of the country, favoring the continued harvest. Bands of heavy rain from Hurricane Ian are pounding southern Florida as the storm crosses Cuba into the Gulf of Mexico and the state is bracing for its landfall Wednesday night or early Thursday.
| Rural Advocate News | Monday September 26, 2022 |
USDA Panel Targets County Committee System The Equity Panel investigating discrimination within the agency wants USDA to consider eliminating the county committee system that’s played a big role in managing the Farm Service Agency’s agricultural programs. Industry Update Dot Com says the Fairness Committee voted to recommend in an interim report to Ag Secretary Tom Vilsack that the USDA do research and analysis on possibly ending the district county committee system and develop a fairer alternative for all farmers. The analysis should include what the county committees are currently doing in creating disparities for minority farmers. That should include the historical role of the district committee system and the current displacement of minority farmers. The commission also recommends that USDA immediately put a program in place that ensures minority county committee councilors have access to the FSA administrator to report real-time problems or issues in the county. The final report will be completed and submitted to Vilsack soon. *********************************************************************************** Wheat Growers Applaud Efforts to Increase Export Promotion Funding America’s wheat growers have a long history of valuing export market development by supporting the successful public-private partnership with USDA’s Foreign Agricultural Service. That’s why U.S. Wheat Associates and the National Association of Wheat Growers applaud the introduction of the Cultivating Revitalization by Expanding American Agricultural Trade and Exports (CREAATE) Act of 2022 in the Senate. The legislation would double the funding for the Market Access Program and Foreign Market Development Program, both of which are administered by the FAS. “MAP funding hasn’t increased from $200 million since 2006, and FMD funding hasn’t changed from $34.5 million since 2002,” says USW Chair Rhonda Larson. “However, our foreign competition in most global markets, including wheat, has grown.” USW also uses MAP and FMD funding to enable greater use of U.S. wheat in food aid programs which have taken on more significance due to the Russian invasion of Ukraine that disrupted the global wheat trade. *********************************************************************************** The Cattle Contracts Library Pilot Program Moves Ahead The USDA’s Agricultural Marketing Service published a Notice to Trade related to the Cattle Contracts Library Pilot Program. The National Cattlemen’s Beef Association says the Library is designed to be a tool for cattle producers, making information available that may allow them to capture unrealized value for their livestock. “We are pleased to see the pilot program progressing and note the important decision to use the Livestock Mandatory Reporting statutes as a basis for any subsequent rulemakings,” says NCBA Vice President of Government Affairs Ethan Lane. “We look forward to continuing to work with staff at AMS to ensure the success of this tool as well as the protection of our members’ proprietary business information.” The Consolidated Appropriations Act of 2022 directed the AMS to create a Cattle Contracts Library Pilot Program to increase market transparency for U.S. cattle producers. AMS is drafting a rule to ensure complete contractual information gets reported. *********************************************************************************** USDA Extends Deadline for Grazing Land Agreements The USDA extended the application deadline for Grazing Lands Conservation Initiative Cooperative Agreements to October sixth. USDA is investing up to $12 million in partnerships that expand access to conservation technical assistance for livestock producers and increase the use of conservation practices on grazing lands. Project proposals for GLCI Cooperative Agreements will identify and address barriers to accessing grazing assistance for producers. The projects should address several concerns, including local natural resource concerns, use climate-smart agriculture and forestry practices and principles, and encourage existing and new partnerships through emphasizing equity in advancing the resource needs of underserved communities. The projects should also identify and implement strategies to quantify, monitor, report on, and verify conservation benefits associated with grazing management systems. NRCS Chief Terry Cosby says privately-owned grazing lands cover almost 30 percent of the landscape, so addressing climate change and conserving resources will happen through voluntary practices. To apply, go to grants.gov. *********************************************************************************** Stabenow, Boozman Expect Votes on USDA, FSA Nominees Senate Ag Chair Debbie Stabenow says she’s hopeful the Senate will confirm three agriculture nominees this week by unanimous consent. The Hagstrom Report says Alexis Taylor is the nominee for USDA undersecretary for trade and foreign agricultural affairs. Jose Emilio Esteban is nominated for USDA undersecretary for food safety. Vincent Logan is the nominee for the Farm Credit Administration Board. Ag Committee Ranking Member John Boozman also hopes they can be confirmed this week. Under questioning, Taylor says she’ll work on difficult issues like Mexico’s potential ban on biotech corn. Logan, the chief financial officer with the Native American Agriculture Fund, repeatedly promised to work with young and beginning farmers. When answering questions, Esteban said he's passionate about preventing salmonella and pledged to work together with all parties on “how we get there.” The Senate Finance Committee recently approved Doug McKalip’s nomination as Chief Ag Negotiator, and he’s waiting for Senate confirmation. *********************************************************************************** U.S. Export Sales Take a step Back USDA data shows export sales of corn, beans, and wheat all fell week-to-week during the seven days ending on September 15. Corn sales during the week dropped sharply to 182,300 metric tons from 583,000 tons during the previous week. Japan was the biggest buyer at 83,200 metric tons. Exports for the week hit 563,000 metric tons, up from almost 427,000 tons the prior week. Soybean sales to overseas buyers dropped to 446,000 metric tons, sharply lower than 843,000 tons a week earlier. Egypt was the top buyer with 174,000 metric tons of beans. Exports during the week totaled over 522,000 metric tons, up from almost 374,000 during the prior week. Wheat sales during the week came in at 183,500 metric tons, with Indonesia the top buyer with 136,000 tons. The USDA report says wheat exports from the U.S. totaled 678,000 metric tons, up slightly from 676,800 tons a week earlier.
| Rural Advocate News | Monday September 26, 2022 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts, harvest anecdotes, any news from Ukraine or Russia and be wary of outside markets after Friday's widespread risk-off selling. Several Federal Reserve officials are also scheduled to speak Monday and may get attention. USDA's weekly export inspections report is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Weather A push of colder air is moving into the Midwest for Monday and will spread out across eastern areas of the country this week. Some showers will continue near the Great Lakes because of it. Other areas will be warmer and drier. The country awaits the arrival of Hurricane Ian, which is forecast to make a Florida landfall and bring widespread rain and wind damage into the Southeast later this week and weekend.
| Rural Advocate News | Friday September 23, 2022 |
USDA Providing Over $500 Million to Expand Rural Broadband USDA Secretary Tom Vilsack announced that his agency is awarding $502 million in loans and grants to help provide high-speed internet in rural America. The funds will be available for rural residents and businesses in 20 states. USDA is making these investments through the third funding round of the ReConnect Program. “High-speed internet will improve the rural economy,” says Vilsack. “It will help rural businesses grow and get access to new markets, as well as help rural residents get access to more and better health care and educational opportunities.” The secretary also calls rural America the country’s “backbone.” To be eligible for the funding, an applicant must serve in an area where high-speed internet service speeds are lower than 100 megabits per second for downloads and 20 Mbps for uploads. The agency will have more investment announcements in the coming weeks. For more information about investment in rural areas, go to rd.usda.gov. *********************************************************************************** Court Ruling Reinstates Modernized Endangered Species Rules Modernized Endangered Species Act regulations will be reinstated after the Ninth Circuit Court of Appeals ruled that a district court improperly vacated 2019 revisions. The appeals court found that the district court erred by reversing the regulations without determining whether they were actually unlawful. American Farm Bureau President Zippy Duvall says they appreciate the ruling by the Court of Appeals. “The revisions to the Endangered Species Act protected at-risk animals while ensuring that farmers could continue feeding America’s families,” he says. “This ruling doesn’t end the debate about modernizing the ESA, but it sends an important message to the lower courts that their job is to rule based on law.” This is the second appellate court ruling to favor the Farm Bureau in the Ninth Circuit Court of Appeals in the past month. In August, the Court overturned a lower court’s ruling that prohibited AFBF from defending the delisting of the gray wolf. *********************************************************************************** NCGA Hosts Next Generation of Ag Leaders for Policy Institute The National Corn Growers Association hosted a group of student delegates from the Agriculture Future of America during the AFA’s Policy Institute in Washington, D.C. The NCGA staff provided a tour and overview of the work the organization does and led discussions around how the national and state associations work collaboratively across the country to increase opportunities for America’s corn farmers. “AFA does incredible work, helping equip the next generation of agriculturalists with the tools and networking experience they’ll need to have successful careers and impact positive change,” says NCGA Market Development Manager Michael Granche’ (GRAHN-chay). “AFA doesn’t just refine their skills but gives them the confidence to walk up to a stranger and tell their ag story.” NCGA was able to engage with the student delegates through different workshops and roundtable opportunities. The Corn Growers will also be a sponsor of AFA’s Leaders Conference held in November in Kansas City. *********************************************************************************** September Wheat Production Forecast Unchanged The USDA’s 2022-2023 September wheat production forecast is unchanged from August at 1.783 billion bushels. 2022-2023 wheat exports are also unchanged from the previous month at 825 million bushels, and there are no by-class changes. U.S. wheat exports for June and July 2022 reached a total of 117 million bushels, down 23 percent from the same time last year. September U.S. wheat imports are unchanged at 110 million bushels, up from 95 million in 2021-2022. America’s wheat imports for June and July totaled 23 million bushels, up 50 percent from the same period in 2021. The 2022-2023 season-average farm price is projected at $9 a bushel, down 25 cents from the previous month. However, it would still be a record. Wheat futures markets remain volatile on a daily basis, underscored by uncertainty regarding the continuity of shipments from the Black Sea region. Recent data says prices may be lower in the coming months. *********************************************************************************** China Food Security Policy May Mean Lower Soybean Demand A Bloomberg article has a large number of soybean farmers around the world worried about the future of Chinese soybean demand. The Chinese government is attempting to boost the country’s food security by trying to lower the number of soybeans turned into animal feed. The farm ministry says feed grains are the biggest problem when it comes to China’s food supply. Ministry officials are asking the feed sector to learn from some of the country’s top producers who have successfully cut down on the amount of soybean meal used in their livestock rations as their main source of protein. China is by far the biggest importer of soybeans in the world, and the import bill last year totaled more than $50 billion. Bloomberg says, “Even modest shifts in soy consumption would help control both import costs and inflation and represent a worry for ‘legions’ of overseas farmers that rely on Chinese demand.” *********************************************************************************** NCGA Asks Senate to Confirm USDA Nominees The National Cattlemen’s Beef Association is urging the Senate Ag Committee to confirm key nominees for Undersecretary for Food Safety and Undersecretary for Trade and Foreign Agricultural Affairs in the USDA. “Cattle producers need strong, stable leadership in top positions at USDA, and we ask the Senate to move quickly on confirming these highly qualified nominees,” says Ethan Lane, vice president of government affairs for NCBA. Dr. Jose Emilio Esteban, who currently serves in USDA’s Food Safety and Inspection Service, is the nominee for Undersecretary for Food Safety. Alexis Taylor, the current director of the Oregon Department of Agriculture, is the nominee for Undersecretary for Trade and Foreign Agricultural Affairs. NCBA has worked closely with Dr. Esteban, who they say is an extremely qualified candidate for the position of undersecretary. They also have worked closely with Taylor in previous roles at USDA and on Capitol Hill, calling her a “proven advocate for farmers and ranchers.”
| Rural Advocate News | Friday September 23, 2022 |
Friday Watch List Markets USDA's cattle on-feed report for September 1 is the only significant report Friday and is expected to stay close to last year's total of 11.23 million head. Traders will continue to keep track of weather, outside market news, events from Ukraine and any word regarding the vote on the rail workers' contracts. Weather A weak system is moving through the Corn Belt on Friday. Areas of isolated showers and a few thunderstorms are expected as the system drifts eastward. Showers may produce a few delays to the ongoing corn and soybean harvest, but not much. Cooler temperatures to the north oppose hot temperatures that continue across the south. Winter wheat areas in Kansas and Nebraska have seen a few showers this week, but conditions continue to be poor for most areas.
| Rural Advocate News | Thursday September 22, 2022 |
Biden Administration Invests $178 Million in International Food for Progress Projects The Department of Agriculture will invest $178 million in seven international development projects on four continents to support U.S. government priorities. The projects include promoting climate-smart agriculture, facilitating trade and addressing the root causes of migration in Central America. Agriculture Secretary Tom Vilsack announced the funding Wednesday and says, "By partnering with private-sector organizations, local governments, and local producers and businesses, we are helping to build more equitable and resilient food systems." Through Food for Progress, USDA donates U.S. agricultural commodities to eligible entities such as private voluntary organizations and foreign governments, which then sell the commodities on the local market and use the proceeds to support agricultural, economic or infrastructure development programs. USDA will donate 240,000 metric tons of commodities this year, valued at $129.6 million. The seven new Food for Progress projects funded by USDA in 2022 are in addition to 41 projects currently underway in 38 countries. *********************************************************************************** USDA Funding International School Feeding Projects The Department of Agriculture will invest $220 million in eight new school feeding projects. The projects are expected to benefit more than a million children across 2,200 schools in food-insecure countries in Africa and East Asia. Agriculture Secretary Tom Vilsack announced the funding Wednesday, awarded through the McGovern-Dole International Food for Education and Child Nutrition Program. This year's awards are part of the $2 billion investment to strengthen global food security, announced by President Joe Biden at the United Nations General Assembly. USDA's 2022 commitment includes direct financial support for the projects and funding for purchasing and transporting 41,350 metric tons of U.S.-grown commodities to be donated to the projects for use in school meals. The awards also include $23.7 million for purchasing nearly 13,000 tons of locally or regionally produced commodities, supporting producers and supply chains in the target countries, and improving the nutritional diversity of school meals. *********************************************************************************** 2022/23 Rice Imports Projected at an All-time High U.S. rice imports for the 2022/23 marketing year, August–July, are projected to rise 16 percent from a year earlier and to reach the highest volume on record at 44 million hundredweight. USDA’s Economic Research Service reports imported rice is also projected to account for almost 32 percent of domestic use of rice in 2022/23, the highest share on record. Imports of long-grain and the combined classes of short- and medium-grain rice are projected at all-time highs. For long-grain rice, growing consumer preference for Asian aromatic rice, such as jasmine rice from Thailand, has increased import purchases. In addition, the United States has been importing a much smaller volume of regular milled long-grain rice from South American suppliers. Increasing imports are spurred by reduced production in California, where a second consecutive year of drought has reduced the size of the rice harvest. The California rice crop is forecast down 38 percent from a year earlier and is expected to be the smallest crop since 1977/78. *********************************************************************************** Report: Gen Z Prefers Quick Service Restaurants Older Gen Zs, ages 18-24, in the U.S. are discerning when choosing restaurants, according to new data by the NPD Group. Although price matters to this group, their taste preferences and definition of value dictate the type of restaurants they visit. As a result, Gen Zs skew towards quick service restaurants, particularly fast casual, that balance value and focused menu. In the 12 months ending July 2022, Gen Zs made five billion restaurant visits, 4.3 billion visits were to quick-service restaurants, and 736 million were to full-service restaurants. Overall quick service traffic was flat compared to a year ago, while Gen Zs fast-casual visits were up four percent in the period compared to a year ago. Gen Zs favor major fast-casual chains that provide the menu items they want, value for the money, and messaging that reflects their interests, like organics and sustainability, according to NPD's recently released Winning Gen Z Consumers study. *********************************************************************************** Pork Board Receives $155 Million in Climate-Smart Funds The National Pork Board received three grants totaling $155 million as part of the USDA Partnerships for Climate-Smart Commodities funding. The three grants are part of the $2.8 billion awarded to 70 selected projects in the first round of funding for the program. The first grant, valued at $20 million, will incentivize soil health and manure management practice adoption and support on-farm sustainability reports for pork operations. The second grant, totaling $95 million, will support a program to advance the adoption of cover crops and conservation tillage in 20 states. The third grant, worth $40 million, will support testing and evaluating climate-smart data in all segments of agriculture in ways that add increased value and support to producers. National Pork Board Sustainability Vice President Ashley McDonald says, “Pork producers stand out as leaders in sustainability with the data aggregation tools they have invested their dollars into already, continually driving to position U.S. pork as the protein of choice here.” *********************************************************************************** Clean Fuels Hires Fuel Economist Jonathan Martin Clean Fuels Alliance America Wednesday announced the appointment of Jonathan Martin as its first Director of Economic and Market Analytics. Martin, most recently an economist with Marathon Petroleum Co., brings ten years of experience in oil and gas corporate economics to this newly created role. He will be based in Ohio. Well-versed in synthesizing and analyzing data, Martin is strategically positioned to support Clean Fuels in economic analysis of planning and policy decisions. Martin has a bachelor's degree in chemical engineering from Rose-Hulman Institute of Technology, Terre Haute, Indiana. Clean Fuels CEO Donnell Rehagen says, “As the diversity of clean fuels grows, we are dedicating additional resources to better predict market trends for our organization and our members.” Martin adds, “I hope to apply my background in energy economics and analytics to help our members and the industry stay abreast of shifting market trends and potential growth opportunities.”
| Rural Advocate News | Thursday September 22, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The Conference Board's index of leading indicators for August is due out at 9 a.m. Traders continue to watch the latest weather forecasts and world events with special attention lately on the Fed and Wednesday's comments from Russia's President Putin. Weather A cold front continues to sag south into the southern reaches of the country Thursday but is starting to lose its strength. Still, cooler fall temperatures continue to filter a bit farther south than where they were Wednesday and the heat ahead of the front is being tamped down toward the Gulf Coast. A system in the West will move into the Plains later today and is already producing scattered showers for portions of the Northern and Central Plains, especially around the Nebraska-Kansas border.
| Rural Advocate News | Wednesday September 21, 2022 |
Grassley Introduces Bipartisan Biochar Research Network Act Senator Chuck Grassley of Iowa Tuesday introduced the Biochar Research Network Act. The Iowa Republican’s legislation seeks to study the effectiveness of biochar, which is a carbon-rich material produced from biomass. Specifically, the bill would establish a national biochar research network to test the impact of biochar across various soil types, application methods and climates to learn more about its capacity to benefit farmers and the environment. Grassley says, “A lot of work remains to fully understand the benefits biochar could provide, and that’s why I’m honored to lead the introduction of the Biochar Research Network Act.” The proposed research network would work to understand productive uses for biochar to help with crop production and climate mitigation. The network would also assess biochar’s potential for soil carbon sequestration and deliver cost-effective and practical information to farmers on sustainable biochar production and application. A companion bill was recently introduced in the U.S. House of Representatives. *********************************************************************************** NCBA Extremely Disappointed with White House Biotechnology Executive Order The National Cattlemen’s Beef Association expressed disappointment Tuesday over an Executive Order announced last week. The White House last week released the Executive Order on Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy. NCBA President Don Schiefelbein says, "Unfortunately, we are extremely disappointed that this Executive Order also addresses fake meat production under the guise of food security." He adds, "Supporting cell-cultured, fake meat products is the wrong approach, and the administration should remain focused on supporting America's farmers and ranchers." NCBA encourages the administration to support the biotechnology innovations already occurring in the cattle industry. According to the organization, technology like gene editing is critical to improving cattle health and wellbeing, while also helping the U.S. cattle industry demonstrate climate neutrality by 2040. NCBA says cattle producers play an important role in ensuring food security and has long fought for policies that help producers remain in business while raising the highest quality beef in the world. *********************************************************************************** USDA Expands SNAP Online Shopping, Adds New Retailers The Department of Agriculture continues to expand opportunities for Supplemental Nutrition Assistance Program, or SNAP, participants to conveniently shop online for groceries. USDA reported Tuesday more than 150 additional retailer chains now offer online shopping to SNAP participants, representing thousands of stores. In collaboration with state agencies and vendor partners, USDA expanded the availability of SNAP online purchasing to 49 states and the District of Columbia, providing more than 99 percent of all SNAP participants with access to online purchasing. USDA's Stacey Dean says, "Expanding the diversity of our online shopping retailers is a critical component of our nutrition security goal to provide better access to healthy, safe, affordable foods." In July 2022, just over three million SNAP households shopped online, a substantial increase from March 2020, when about 35,000 SNAP households shopped online. In the last four months, 44 retailers were added to the program, representing 1,240 store locations. *********************************************************************************** CoBank: Off-farm Income Increasingly Important A new study shows increasing dependence on off-farm employment and income reveals the growing economic interconnection of rural communities and surrounding cities. According to a study by researchers at the University of Missouri, 82 percent of U.S. farm household income now comes from off-farm sources. The study was commissioned by CoBank and completed in partnership with CoBank's Knowledge Exchange. Most farmers cited reliable income as the top reason for off-farm employment, as one-half of farm households have negative farm income in a typical year. Health and retirement benefits were also cited as key reasons for off-farm jobs within farm households. Among the study's key findings is that rural communities have increasingly diverse economies, and success within a rural community's agricultural sector is largely dependent on other sectors of the regional economy at large. Today, only 6.5 percent of workers in rural counties are employed in agriculture, compared to 15.4 percent in 1970. *********************************************************************************** AEM Releases Sustainability Toolkit for Manufacturers The Association of Equipment Manufacturers recently unveiled its equipment industry Sustainability Toolkit. The toolkit provides assessments and resources to help manufacturers and their supply chains minimize operational impact on the environment. The toolkit aims to advance the equipment manufacturing industry's efforts to align with evolving regulation and support a more sustainable world. AEM President Megan Tanel says the toolkit is “a resource to help our member companies take action to deliver lasting change to protect the environment.” AEM Sustainability Council Chair Karen Cecil adds, "The assessments in the toolkit provide actionable best practices for improving sustainability opportunities and efficiency, plus minimizing risks." The toolkit offers action plans, tools, and best practices to implement under four phases of the sustainability maturity model. The toolkit also features several assessments designed to help company leaders navigate the evolving sustainability landscape and identify areas for improvement. *********************************************************************************** New Leader Brings Innovative Perspective to CropLife America Policy Efforts CropLife America Tuesday announced the hiring of incoming Vice President, Government Relations Peggy Browne. With years of experience in agriculture, government, and policy, Peggy will use her expertise to lead CropLife America's government relations team. CropLife America president and CEO Chris Novak says, "Peggy's background and passion for agriculture, her understanding of government, and her demonstrated leadership will help CropLife continue to move industry priorities forward." Before joining CLA, Browne worked for USDA's Farm Service Agency —starting first in Oregon as the state executive director before moving to Washington, D.C., as the deputy administrator of field operations. Browne also recently worked on the Senate Agriculture Committee. Browne founded and was president and CEO of Browne Consulting, where she worked with farmers to develop and manage conservation projects, advised clients on water rights issues, Farm Bill programs and more. Her agriculture experience is grounded in her experience as a farmer/rancher in Oregon, where she served as vice president of the Oregon Farm Bureau.
| Rural Advocate News | Wednesday September 21, 2022 |
Wednesday Watch List Markets A report on U.S. existing home sales in August is due out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly energy inventory at 9:30 a.m. CDT. Ethanol production has slowed lately and will be watched in the 9:30 a.m. report. Wednesday is the final day of the Federal Reserve's two-day meeting and you will want to be seated for the increase in interest rates expected to be out at 1 p.m. Weather Heat remains in place across a good portion of the south Wednesday, but a strong fall cold front continues to work its way southeast through the country. Areas of showers and thunderstorms will come along with the front, being strongest across the eastern Great Lakes later Wednesday and Wednesday night, extending back to Colorado. Temperatures behind the front are some 20 to 30 degrees lower than they were yesterday.
| Rural Advocate News | Tuesday September 20, 2022 |
Legislation Would Reduce Regulation on Trucking Industry Legislation introduced last week would remove burdensome government regulations from the trucking industry, according to Senator Mike Rounds. The South Dakota Republican introduced the Trucking Regulations Unduly Constricting Known Service-providers, or TRUCKS Act. Rounds says the regulations are burdensome to agriculture, school districts and trucking companies. In 2012, then-President Obama signed into law legislation that set in motion a new rule that created a requirement for Entry-Level Driver Training. The final rulemaking went into effect earlier this year. All new drivers who wish to obtain their Commercial Driver’s License must now complete Entry-Level Driver Training, adding a burdensome requirement at a time when the American Trucking Association estimates a nationwide trucker shortage of 80,000 drivers. The bill would allow states to issue a new “Small Business Restricted CDL” so Entry-Level Driver Training requirements would not affect small businesses with nine CDLs or less. The U.S. Custom Harvesters have endorsed the legislation. *********************************************************************************** Not All Happy with Climate-Smart Practices Funding The Climate-Smart agriculture partnerships funding announced last week has some environmental groups drawing criticism. While welcomed by many in the food and agriculture sector, environmental group Friends of the Earth says some of the funding recipients are unacceptable. Funding recipients and partners include a range of corporations, universities, NGOs, trade associations, farms, tribal organizations, and state agencies. USDA is expected to soon make another announcement of $700 million for smaller projects under this initiative. Jason Davison, Senior Food and Agriculture Campaigner at Friends of the Earth, says, “Unfortunately, several of them will funnel tens of millions of taxpayer dollars to some of the most egregious climate offenders — Big Ag corporations like JBS, Cargill, and ADM.” Davison adds, “Many of these corporations and trade associations have historically fought climate mitigation measures, refusing to report data on their emissions and other pollution.” Friends of the Earth called on Congress and the Department of Agriculture to ensure transparency and accountability for the projects. *********************************************************************************** USDA Funds Six International Research Projects on Climate-Smart Agriculture USDA’s Foreign Agricultural Service Monday announced grants for research and educational partnerships focused on climate-smart agriculture in tropical countries. Foreign Agricultural Service Administrator Daniel Whitley announced the $300,000 in funding to six U.S. universities. Whitley says, “We’re confident that they can collaborate on climate solutions that contribute to food security and agricultural sustainability, both locally and globally.” The Foreign Agricultural Service is awarding the funds under the Scientific Cooperation Research Program. FAS is awarding approximately $50,000 each to Tennessee State University, the University of Hawaii at Manoa, Texas State University, the University of Missouri, the University of Nebraska, and Louisiana State University. Whitley noted that this year's awards support two of USDA's top priorities under Agriculture Secretary Tom Vilsack and Deputy Secretary Jewel Bronaugh: putting agriculture at the center of solutions to the global climate crisis; and advancing racial justice, equity and opportunity in USDA program administration through the involvement of three prominent minority-serving institutions. *********************************************************************************** Food Insecurity Rates Differ Across States USDA’s Economic Research Service Monday released data showing the variations of food insecurity across the nation. Food insecurity rates vary across States because of household-level characteristics, State-level characteristics, and State-level policies. The estimated prevalence rates of food insecurity during 2019-21 ranged from 5.4 percent in New Hampshire to 15.3 percent in Mississippi. The estimated national average was 10.4 percent. The prevalence of food insecurity was significantly higher than the national average in nine States and lower than the national average in the District of Columbia and 14 States. In the remaining 27 States, differences from the national average were not statistically significant. USDA monitors the extent of food insecurity in U.S. households at the national and State levels through an annual U.S. Census Bureau survey. State-level estimates are obtained by averaging three years of data. Food-insecure households are those that had difficulty at some time during the year providing enough food for all members of the house due to a lack of resources. *********************************************************************************** Dickhut Retiring from Farmers National Company Farmers National Company Monday announced Randy Dickhut (dick-hoot), Senior Vice President of Real Estate Operations, will retire on September 30, 2022. He retires after more than 20 years of work and leadership within the company. Dickhoot began his career with Farmers National Company in 2002 as a Farm Manager in West Central Illinois. In 2006, he moved to Omaha, Nebraska when promoted to the Vice President of Client Relations, and will complete his tenure with the company as the Senior Vice President of Real Estate Operations. Farmers National Company also announced that Paul Schadegg, Western Area Sales Manager, has been promoted to Senior Vice President of Real Estate Operations. Paul brings a wealth of knowledge and expertise to his new role with 20+ years of real estate and farm management experience. Farmers National Company, an employee-owned company, is the nation's leading agricultural landowner services company. *********************************************************************************** Murky Future for Fuel Prices Fuel prices fell again last week, but GasBuddy says the near-term future is murky. The decline marks the 14th consecutive week of declines. The nation's average gas price declined 3.9 cents from a week ago to $3.64 per gallon. The national average is down 25.7 cents from a month ago but 45.9 cents higher than a year ago. The average diesel price declined 7.0 cents last week and stands at $4.93 per gallon. However, this week could change the downward trend, according to GasBuddy’s Patrick De Haan, who says, “With some issues arising in Plains and Great Lakes states as the transition to winter gasoline begins, I think we have the best potential to see the weekly trend of falling prices snapped.” West Coast states also continue to see increases as unexpected refinery issues continue to percolate, preventing a downward move. De Haan adds, “diesel prices should continue to ease after a much-needed jump in inventories last week.”
| Rural Advocate News | Tuesday September 20, 2022 |
Tuesday Watch List Markets A report on U.S. housing starts in August is due out at 7:30 a.m. CDT and is the only significant report of the day. Traders will keep an eye on the latest weather forecasts for the U.S. and South America, watch for a possible export sale announcement and any news regarding Ukraine or Wednesday's expected rate hike. Weather A strong cold front has dropped out of Canada and into the Northern Plains on Tuesday morning. The front will continue southeast through the day, getting into the Central Plains and the Upper Midwest by tonight. Limited showers are expected with the front, but some better thunderstorms will be possible around Wisconsin in a couple of rounds. Hot temperatures continue ahead of the front while much cooler temperatures follow behind it by about 20-30 degrees.
| Rural Advocate News | Monday September 19, 2022 |
Agricultural Share of Exports Hit High Mark in 2021 The value of all U.S. exports has grown at an average annual rate of six percent since 2002 and reached a record high of $1.4 trillion in fiscal year 2021. The USDA says while the bulk of U.S. exports consists of industrial supplies and capital goods, agriculture’s share of total U.S. exports has steadily increased. Between fiscal years 2002 and 2021, the value of agricultural exports rose by an average of 11 percent every year, exceeding the overall rate of increase for the rest of American exports. In 2021, ag producers accounted for 12 percent of the total value, up from nine percent in 2002. Even as total U.S. exports dropped 12 percent when COVID-19 began in fiscal year 2020, ag exports stayed steady because of surging shipments of soybeans, corn, and pork to China. In 2021, total U.S. exports rebounded by 14 percent as global demand recovered and trade restrictions relaxed. *********************************************************************************** USDA Resumes Export Sales Reports U.S. soybean exporters are off to a decent start as far as sales in the new marketing year. However, the first USDA report in several weeks says the shrinking U.S. crop, questionable Chinese demand, and South American competition are all threats to future sales opportunities. Reuters says those factors are pressuring U.S. corn exports too, but the latest level of sales was already uneventful ahead of the U.S. harvest. Technical issues prevented USDA from publishing weekly U.S. export data for almost a month. The data released last week included four weeks of sales ending on September 8. The data drought spanned marketing years as 2022-2023 began on September 1 for corn and soybeans. Soybean sales beat expectations in those four weeks at 5.75 million tons. For the 2022-2023 marketing year, U.S. corn sales during those four weeks hit 2.465 million tons. Total corn sales in the new marketing year reached 12.3 million tons. *********************************************************************************** Farmers Union Holds Successful D.C. Fly-In Last week, more than 250 members of the National Farmers Union came to Washington, D.C., from all over the country to advocate for family farmers. During the week, members attended hundreds of Congressional meetings, met with over a dozen federal agencies, and directly participated in discussions with Ag Secretary Tom Vilsack, Commodity Futures Trading Commission Chair Rostin Benham, and many others. “This has been an incredibly productive and successful fly-in for National Farmers Union,” says NFU President Rob Larew. “It’s a testament to the passion and interest of our members that they’re willing to take time away from the farm and come to Washington and build bipartisan support for Fairness for Farmers and their farm bill priorities.” Ag Secretary Tom Vilsack says National Farmers Union, in many respects, has been the architect and the designer of the work the Biden administration is doing in terms of farm country and agriculture. *********************************************************************************** Taiwan Team to Purchase 69.8 Million Bushels of U.S. Wheat Representatives from the Taiwan Flour Millers Association signed a letter of intent last week with U.S. Wheat Associates to buy 1.9 million metric tons of U.S. wheat over the next two years. Officials from U.S. Wheat Associates say that’s about 69.8 million bushels of American wheat worth $576 million. The signing took place at the Capitol Building in Washington, D.C. Taiwan is the sixth-largest U.S. wheat export market and the seventh-largest overseas market for U.S. agricultural products. “American farmers place great value on the relationship between U.S. agriculture and Taiwan,” says Michael Peters, USW Vice Chairman. “We pride ourselves as being dependable partners who grow the highest quality agricultural products in the world.” The team from Taiwan also signed Letters of Intent with the U.S. Soybean Export Council and the U.S. Grains Council to purchase soybeans and corn. The total estimated commitment in the three letters is estimated at $3.2 billion. *********************************************************************************** RIPE Awarded $80 Million for Pilot Conservation Program Rural Investment to Protect our Environment (RIPE) and its partners have been awarded $80 million for a pilot program by USDA’s Partnerships for Climate-Smart Commodities program. RIPE is a producer-led organization advancing RIPE 100. It’s a conservation program that would pay producers $100 per acre or animal unit for stewardship, offering equitable payments above costs associated with practice implementation. Under the three-year program, the pilot will help producers in Arkansas, Minnesota, North Dakota, and Virginia prove the value of paying farmers and ranchers $100 per acre or animal unit for stewardship practices that deliver public value through carbon sequestration, greenhouse gas reductions, improved soil health, water quality and conservation, and other environmental practices. Other key principles of the pilot include easy enrollment, equitable payments, and no penalty for early adopters. Participants will get technical support in learning how to implement climate-friendly practices such as cover crops, no-till, nutrient management, and more. *********************************************************************************** Lamb Board Hosts Farm Tours for Food Influencers People who influence opinions about food are taking to the backroads of America and learning how American lamb is raised while natural resources are protected. The American Lamb Board selected key market areas for the tours, including Boston, Seattle, Boulder, and Napa. “Our Lamb Checkoff engages with food influencers because they add another layer of credibility to our messages,” says ALB Chairman Peter Camino (Kah-MEE-no). “We’ve had numerous occasions when influencer relationships created opportunities we didn’t anticipate.” On August 1, a group of 25 Boston-area chefs and food media influencers made the trip to a farm in Boxford, Massachusetts, and enjoyed a deep dive into learning about lamb. The tour shed light on the intricacies of raising sheep in New England and highlighted the regenerative farming practices the producer already employs. The next tour was held on September 18 and hosted a group of influencers at Ninety Farms, located near Seattle.
| Rural Advocate News | Monday September 19, 2022 |
Monday Watch List Markets Back from the weekend, traders may be a little cautious with an eye on outside markets as the Federal Reserve starts a two-day meeting Tuesday and is expected to increase the federal funds rate target on Wednesday. Traders will also be checking for rain prospects, especially for HRW wheat areas. USDA's weekly report of export inspections is due out at 10 a.m. CDT Monday, followed by the Crop Progress report at 3 p.m. Weather Scattered showers left over from the weekend continue over the eastern Midwest on Monday. Additional showers are developing with a weak system in the Northern Plains and Canadian Prairies. But over the rest of the country and particularly in the Central Plains, heat is building with temperatures well above normal forecast for the next couple of days. Recent showers did not fall over much of the winter wheat areas of the country which continue to suffer drought while the heat is also unfavorable. Showers may have and continue to have some negative effect for mature corn and soybeans waiting to be harvested.
| Rural Advocate News | Friday September 16, 2022 |
Tentative Railroad Agreement Reached The Biden administration helped to broker a deal between the major railroads and labor unions. The agreement avoids a rail shutdown but still has to be approved by a vote of union members. The biggest issue in the dispute wasn’t pay but working conditions. Some freight rail engineers and conductors faced on-call schedules that could see them called to work on short notice up to seven days a week. CNN says roughly 30 percent of America’s freight moves by rail. Recently harvested crops would be stuck, unable to reach processing plants and risk spoiling. The shutdown would have likely made inflation worse, cost the U.S. economy up to $2 billion a day, and affected the agriculture, manufacturing, and energy sectors of the economy. Emily Skor, CEO of Growth Energy, told Reuters that the deal is great for the ethanol industry as much of the country’s biofuel supplies are moved by railroads. *********************************************************************************** Wheat Growers Applaud Rail Agreement The National Association of Wheat Growers and U.S. Wheat Associates applaud the tentative agreement between the railroads and rail union representative that averted a potential Friday rail shutdown. While the union members have to vote on the deal, they have agreed not to strike while the deal goes through ratification. “COVID-19 forced rail laborers into a tough situation as essential workers, and we applaud their willingness to come to an agreement,” says NAWG CEO Chandler Goule. “We also appreciate the railroads understanding the severity of the situation and taking steps to improve their services.” Wheat growers are uniquely reliant on rail due to the large distances between production and consumption. “Our country’s reputation as the world’s most reliable wheat supplier depends heavily on functioning rail transportation and that won’t change in the future,” says USW President Vince Peterson. Railroads have moved more than one billion bushels of wheat during the last five years. *********************************************************************************** NCBA Wants Limited Greenhouse Gas Rule The National Cattlemen’s Beef Association reiterated the need for a limited version of the Securities and Exchange Commission’s greenhouse gas disclosure rule. SEC Chair Gary Gensler recently testified before the Senate Committee on Banking. “The SEC’s proposed greenhouse gas disclosure rule is aimed at large publicly-traded companies but would lead to unintended consequences for small businesses like farms and ranches,” says NCBA Chief Counsel Mary-Thomas Hart. “The rule would require data that simply does not exist at the farm or ranch level and increases the regulatory burden on individual cattle producers.” She also says they’re asking the SEC to limit their proposed rule to avoid unintentional impacts to farms and ranches across the country. The greenhouse gas rule would require businesses up and down the beef supply chain to disclose their greenhouse gas emissions, including farms and ranches. The rule would also expose individual producers to additional levels of legal liability. *********************************************************************************** Court Rules GMO QR Codes Unlawful A U.S. District Court says the USDA’s decision to allow genetically engineered foods to only be labeled with a QR code was unlawful. The Center for Food Safety says USDA is required to add additional disclosure options to those foods under the USDA’s Bioengineered Food Disclosure Standard. “This is a victory for all Americans,” says Meredith Stevenson, Center for Food Safety staff attorney and counsel in the case. “The decision marks a key step toward ending the food industry’s deceptive and discriminatory GMO food labeling practices, which have kept consumers in the dark by concealing what’s in their products.” The Court sent back to the agency the QR code portions of the 2018 Trump administration rules for GMO labeling that went into effect on January 1 of this year. The Center also says the court now confirmed that the USDA acted unlawfully in allowing standalone QR code and other electronic GMO labeling. *********************************************************************************** Subcommittee Hearing Covers Pros and Cons of “Right to Repair” The House Small Business Subcommittee heard from both sides in the right-to-repair debate in agriculture. Industry Update Dot Com says lawmakers will have to consider measures that would require machine manufacturers to give customers the software, parts, and tools they want to make their own repairs. Ken Taylor of the Equipment Dealers Association expressed concern that giving people access to internal software in their equipment would allow them to change emissions and safety controls in tractors and other implements. While dealers already sell several parts directly to farmers, the manufacturer’s association doesn’t want customers tampering with controls for safety, environmental, and health reasons. Gay Gordon-Byrne represented the Repair Association and said farmers just want to be able to get parts and make repairs themselves. “All this worry about modifying emissions and tweaking tractors isn’t repair,” she says. “We just want to do something simple that’s been complicated by these questions.” *********************************************************************************** Farmers for Soil Health Thankful for Funding The National Corn Growers Association applauded a recent USDA decision to allocate up to $95 million in funding to help farmers accelerate their cover crop adoption. The funding will support Farmers for Soil Health, which works to advance conservation practices to improve soil health across the U.S. The FFSH collaborative is comprised of commodity groups, including the NCGA, the American Soybean Association, the National Pork Board, and the United Soybean Board. “We appreciate the USDA for recognizing the important role that farmers play in combatting climate change,” says NCGA Vice President of Production and Sustainability Nathan Fields. “These funds will help us identify and support practices that work for corn growers, expand the use of cover crops, and build on our efforts to lower greenhouse gas emissions.” Fields also says the funding will help NCGA reach 30 million acres of cover crops by 2030 through funding cost-share and technical assistance.
| Rural Advocate News | Friday September 16, 2022 |
Friday Watch List Markets Early Friday, traders will be checking to see if there is anything new regarding the tentative agreement between rail companies and workers. The latest weather forecasts will also be checked for the possibilities of rain next week in the southwestern U.S. Plains. At 9 a.m. CDT, the University of Michigan will report on U.S. consumer sentiment and USDA's Livestock, Dairy and Poultry Outlook will be out at 1 p.m. Weather A disturbance from Thursday continues with some showers from Kansas into Minnesota Friday morning. Another system will move from the central Rockies into the Central and Northern Plains late in the day and produce another smattering of scattered showers from Kansas northward late today and tonight. Most of the rest of the country will remain dry with above-normal temperatures, heavily influenced by warm lows this morning.
| Rural Advocate News | Thursday September 15, 2022 |
USDA Investing $2.8 Billion in Climate-Smart Commodities Partnerships and Projects Ag Secretary Tom Vilsack says the USDA is investing up to $2.8 billion in 70 selected projects under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity. USDA’s initial investment of $1 billion is expected to triple to more than $3 billion in pilot projects that will create market opportunities for American commodities produced using climate-smart practices. These projects will expand markets for climate-smart commodities, leverage greenhouse gas benefits of climate-smart commodity production, and provide meaningful benefits to production agriculture. Applicants submitted more than 450 project proposals for the first round of funding. “There is strong and growing interest in the private sector and among consumers for food that’s grown in a climate-friendly way,” Vilsack says. The strength of the 70 projects led USDA to increase its investment from the $1 billion announced earlier this year. More information on Partnerships for Climate-Smart Commodities and program details are available at usda.gov. *********************************************************************************** NACD: “Leave No Producer Behind” The National Association of Conservation Districts is one of 70 partners selected to participate in USDA’s Climate-Smart Commodities Program. The NACD will receive a grant of up to $90 million over three years for technical, financial, and marketing assistance. The association intends to advance grassroots efforts that ensure producers and local communities are prepared to meet growing demand and have access to climate-smart commodity markets. The NACD’s goal is to leave no producer behind. “We’re thrilled about the opportunity to invest in local communities through the Climate-Smart Commodities Program,” says NACD President Michael Crowder. “We know that producers are more likely to implement climate-smart practices if transition risks are minimized and they have ready access to profitable market opportunities.” Roughly 70 percent of land in the lower 48 states is privately owned, which means implementing sound conservation practices relies on individual producers. This assistance will support producers in making sound conservation decisions. *********************************************************************************** Scott Speaks On Soil Health, Regenerative Practices After House Ag Hearing House Agriculture Committee Chair David Scott spoke after a hearing titled “Soil Health Practices and Programs that Support Regenerative Agriculture. ”As I noted after my first hearing as Chair in 2021, changing weather patterns have introduced significant risks to agricultural production, forest resources, and the economy will affect risk-management tools, financial markets, and global food security,” Scott says. “The risks to agriculture are why topics like soil health are important to consider.” He also says the witnesses at the hearing provided the committee with valuable insight to help them better understand the conservation and economic benefits of soil health practices and how they support regenerative agriculture. “The lessons we learned through the Dust Bowl led to the creation of the Natural Resources Conservation Service,” Scott adds. “In the face of growing climate challenges, managing soil health is one of the most effective ways farmers can increase productivity and protect natural resources.” *********************************************************************************** Nestle Getting Into the “Fake-Milk” Market Nestle is trying to establish a presence in the animal-free dairy market by working with Perfect Day, a startup company trying to create a milk-like beverage from microflora. The genetically-engineered microflora will be programmed to produce proteins similar to cow’s milk, but Nestle says the microflora milk will have a smaller environmental footprint. Nestle says it will try out the new beverage in a handful of stores later this year. The company says it’s only the beginning of new dairy products. “Innovating alongside leaders like Nestle is a key part of how we’re making an impact,” says Perfect Day CEO Ryan Pandya. Perfect Day is also working with several other manufacturers to bring animal-free milks to market. They’re working with Betterland Foods, another new company that introduced lactose-free milk in whole or creamy varieties. Tomorrow Farms introduced its Bored Cow Flavored Milk brand that uses Perfect Day’s animal-free whey proteins. *********************************************************************************** Ten Semi-Finalists Advance in Ag Innovation Challenge The American Farm Bureau, in partnership with Farm Credit, announced that ten teams advanced to the semifinal round of the 2023 Farm Bureau Ag Innovation Challenge. “The future of agriculture depends on innovative solutions to the challenges that we’re facing today,” says AFBF President Zippy Duvall. “The entrepreneurs behind the start-up companies we’re recognizing are committed to helping rural communities and supporting farmers and ranchers in their mission to provide the food, fuel, and fiber we all rely on.” The competition is an opportunity for individuals to showcase ideas and business innovations in agriculture. It’s the ninth year of the challenge, which was the first national business competition focused exclusively on rural entrepreneurs launching food and agriculture businesses. The ten semi-finalist teams are being awarded $10,000 each and will compete at the AFBF convention in Puerto Rico. Four teams will then advance to the final competition during the annual convention.
| Rural Advocate News | Thursday September 15, 2022 |
Thursday Watch List Markets Fingers crossed, USDA is expected to have weekly export sales data, updated through September 8 available at 7:30 a.m. CDT Thursday, data that was stopped as of August 11 after technical issues got in the way. Also at 7:30 a.m., there will be weekly U.S. jobless claims, August retail sales and an update of the U.S. Drought Monitor. At 9:15 a.m., the Federal Reserve's report on industrial production will be out, followed by natural gas storage at 9:30 a.m. and a soybean crush estimate for August from the National Oilseeds Processors Association later Thursday morning. Weather Weak disturbances continue to move from the West into the Northern Plains, producing more scattered showers on Thursday. Another little disturbance will create scattered showers farther south through the Central and Southern Plains as well. These storms may be briefly strong enough this afternoon and early evening to become severe, but any moderate to heavy rain will be isolated. The few areas that do receive rain will be happy to do so for winter wheat planting, though there may be some delays for corn and soybean maturity. Outside of the rain potential, it continues to be hot in the middle of the country as a ridge of high pressure is largely in control.
| Rural Advocate News | Wednesday September 14, 2022 |
August Consumer Price Index Increases The Consumer Price Index increased 0.1 percent in August on a seasonally adjusted basis after being unchanged in July. The Bureau of Labor Statistics reported Tuesday Increases in the shelter, food, and medical care indexes were the largest contributors to the broad-based monthly all items increase. The food index increased 0.8 percent in August, the smallest monthly increase in that index since December 2021. The food at home index rose 0.7 percent in August as all six major grocery store food group indexes increased. The index for other food at home rose 1.1 percent, while the index for cereals and bakery products rose 1.2 percent over the month. The meats, poultry, fish, and eggs index, the fruits and vegetables index, and the nonalcoholic beverages index all increased 0.5 percent in August. The index for dairy and related products increased 0.3 percent over the month, the smallest increase in that index since November 2021. *********************************************************************************** Executive Order Seeks Advancement of Biotechnology An Executive Order by President Joe Biden announced this week focuses on advancing biotechnology and biomanufacturing innovation. Specifically, the order seeks innovative solutions in health, climate change, energy, food security, agriculture, supply chains, and national and economic security. The White House says, “For biotechnology and biomanufacturing to help us achieve our societal goals, the United States needs to invest in foundational scientific capabilities.” Of note, the order will bolster federal investment in key research and development areas, boost sustainable biomass production, create climate-smart incentives for American agriculture, and expand market opportunities for bioenergy and biobased products. Within 180 days, the order directs the Agriculture Secretary to issue a report assessing how to use biotechnology and biomanufacturing for food and agriculture innovation. This includes improving sustainability and land conservation, increasing food quality and nutrition, increasing and protecting crop yields, protecting against plant and animal pests and diseases, and cultivating alternative food sources. *********************************************************************************** Organic Trade Reaches $3.4 Billion in 2021 USDA’s Economic Research Service Tuesday reported organic trade reached $3.4 billion in 2021. Since 2011, there has been an uptick in the total value of imported organic products, partially because more products are being tracked and partially because more high-value organic products, such as blueberries and squash, are being imported into the United States. The United States also exports organic food, and those exports have been steadily rising since 2011, reaching $0.7 billion in 2021. For example, the United States exported 2.4 thousand metric tons of organic fresh cultivated blueberries, with more than 90 percent headed to Canada in 2021. In the same year, the United States imported 41.5 thousand metric tons of organic fresh cultivated blueberries. Importers of organic products must either be USDA-certified or belong to a trading partner with an organic recognition agreement with the United States. Countries with such agreements include Canada, the European Union, Japan, South Korea, Switzerland, Taiwan, and the United Kingdom. *********************************************************************************** North American Combine Continue Unit Sales Growth in August, Tractors Mixed Combine sales grew for August in both the U.S. and Canada, while total tractors fell in the U.S., but grew in Canada, according to the latest data from the Association of Equipment Manufacturers. Total U.S. ag equipment unit sales rose above the five-year average for the first time since April 2022. U.S. total farm tractor sales fell 11.7 percent for August compared to 2021, while combine sales for the month grew 25.8 percent to 790 units sold, making for a three-month growth streak for that segment. In Canada, growth in all segments led Canadian unit sales to its first positive year-over-year month in unit sales since January 2022. Overall unit sales in tractors were up 7.2 percent, and combine sales grew 33.1 percent to 221 units sold. Year-to-date farm tractor unit sales are down 6.7 percent in Canada, while harvesters cut their losses down to 13.7 percent. *********************************************************************************** Lawsuit Seeks Documents from EPA Regarding Dicamba Harms The Center for Food Safety this week filed a Freedom of Information Act lawsuit against the Environmental Protection Agency. The lawsuit claims the EPA is unlawfully withholding records about the impacts of dicamba. The lawsuit, filed in the U.S. District Court of Northern California, alleges that EPA withheld public records from an agency report showing that control measures in its 2020 dicamba registration decision failed to reduce the number, severity, or geographic extent of dicamba-related incidents compared to prior seasons. Meredith Stevenson, staff attorney at the Center for Food Safety, says the action "reflects the agency's pattern of thwarting the public's access to information under FOIA." In June 2022, the center submitted a FOIA request to EPA, seeking documents referenced in the agency's December 2021 report on dicamba. The EPA has yet to produce any records, prompting CFS to now sue under FOIA law. The lawsuit comes amid an ongoing lawsuit challenging the legality of EPA's 2020 registration of over-the-top dicamba pesticide uses on dicamba-resistant cotton and soybeans. *********************************************************************************** Farm Foundation Hosting Antimicrobial Stewardship Forum Farm Foundation this week announced a forum on Antimicrobial Stewardship in Agriculture: How Far Have We Come and What's Next? The free online forum is set for Tuesday, September 27, at 9:00 am CDT. Farm Foundation says antimicrobial resistance poses a serious public health threat and has the potential to affect society, the economy and the health of animals and humans. The latest Forum will examine scientific evidence related to antimicrobial use and the effects of antimicrobial resistance in agriculture. The forum will also address key public policies shaping discussions around stewardship, resistance and what challenges need to be addressed in the long and short term. Shari Rogge-Fidler, Farm Foundation President and CEO, says, “We're proud to provide a space where farmers and industry stakeholders alike can engage on a crucial topic.” The event is being held virtually via Zoom and is free to attend, but registration is required. Find details and registration at: farmfoundation.org/AntimicrobialForum.
| Rural Advocate News | Wednesday September 14, 2022 |
Wednesday Watch List Markets The U.S. Labor Department's producer price index for August may be anti-climactic Wednesday, but will be out at 7:30 a.m. CDT followed by a new round of crop estimates from Statistics Canada. The U.S. Energy Department's weekly inventory report is set for 9:30 a.m. and includes weekly ethanol production. Traders will continue to watch the latest weather forecasts and keep an eye on outside market concerns after Tuesday's sell-off in the stock market. Weather A ridge of high pressure is building over the middle of the country Wednesday. Temperatures will continue to increase for most areas, especially with regards to morning lows. Disturbances off in the West will move northeast, producing scattered showers for the Northern Plains. Some isolated showers will also get into portions of the Central and Southern Plains. The heat and overall dryness will continue to be unfavorable for those looking to plant winter wheat.
| Rural Advocate News | Tuesday September 13, 2022 |
USDA Forecasts US Corn, Soybean, and Cotton Production Down from 2021 Corn, soybean, and cotton production is down from 2021, according to Monday's Crop Production report issued by USDA's National Agricultural Statistics Service. Corn production is down eight percent from last year, forecast at 13.9 billion bushels, while soybean growers are expected to decrease their production one percent from 2021, forecast at 4.38 billion bushels. Meanwhile, cotton production is down 21 percent from 2021 at 13.8 million 480-pound bales. Planted corn area is estimated at 88.6 million acres, down one from the previous estimate. Area planted to soybeans is estimated at 87.5 million acres, down one percent from the previous estimate, but cotton planted area is estimated at 13.8 million acres, up 11 percent from the previous estimate. The U.S. season-average soybean price is forecast at $14.35 per bushel, unchanged from last month. Meanwhile, USDA's World Agricultural Supply and Demand report raised the season-average corn price ten cents to $6.75 per bushel. USDA also lowered the season-average farm price for wheat 25 cents to $9.00 per bushel. *********************************************************************************** The Fertilizer Institute urges Congress Act to Avoid a Freight Rail Shutdown The Fertilizer Institute over the weekend again urged Congress to take action to avoid a freight rail shutdown on September 16. TFI sent a letter to Congressional leaders pushing for intervention to prevent a stoppage from occurring. TFI President and CEO Corey Rosenbusch says, "A stoppage hasn't yet happened, but we are already feeling the negative effects of non-resolution." Rail carriers announced Friday evening that shipments of fertilizer products, such as ammonia – a key fertilizer and building block for approximately three-fourths of all fertilizer – will start coming off rail networks this week. Rosenbusch contends the situation will get exponentially worse every day there is no resolution, adding, "if they cannot reach an agreement, Congress must act to avoid an economic catastrophe that will only add to inflation and increase consumer pain." Congress can prevent rail workers from striking and has done so before, in 1986 when then-President Ronald Reagan intervened in the strike of workers for Maine Central railway. *********************************************************************************** Lawmakers Ask USTR To Protect Growers from Unfair Practices by Mexico Lawmakers led by Florida Senator Marco Rubio recently asked U.S. Trade Representative Katherine Tai to investigate the flood of surplus agricultural products from Mexico. The request, filed as a petition under Section 301 of the Trade Act of 1974, says actions by Mexico over the last two decades have burdened and restricted U.S. commerce. The lawmakers say that for more than 20 years, Mexico has leveraged heavy subsidies and low wages in a scheme to conduct a “conquest of external markets” and displace Florida’s seasonal and perishable agricultural industry from the domestic U.S. market. Specifically, the petition names fruits and vegetables grown with subsidized horticultural infrastructure and other forms of Mexican government support as a marketplace burden for U.S. growers, and may allow Mexico the ability to set market prices that harm American consumers. Provisions of the amended Trade Act of 1974 gives USTR authority to investigate and redress unreasonable trade practices that burden and restrict U.S. commerce. *********************************************************************************** Food Insecurity in Households with Children Reached Two-decade Low in 2021 USDA’s Economic Research Service reported Monday food insecurity in U.S. households with children reached a two-decade low in 2021. The Economic Research Service monitors the prevalence of food insecurity in U.S. households with children by measuring food insecurity for the household overall, as well as for adults and children separately. The first measure, food insecurity in households with children, indicates that at least one person in the household—whether an adult, a child, or both—was food insecure. The second measure, food insecurity among children, indicates that households were unable at times to provide adequate, nutritious food for their children. Both annual measures improved in 2021. In 2021, 12.5 percent of households with children were food insecure, a significant decrease from 14.8 percent in 2020 and the lowest point in two decades. The prevalence of food insecurity among children in 2021 was 6.2 percent, down from 7.6 percent in 2020. The decline means that in 2021 nearly 2.5 million fewer children lived in households that experienced food insecurity. *********************************************************************************** Organic Produce Association Elects Chairman The Organic Produce Association recently elected Theo Cristantes Jr as chairman. Cristantes is the chief operations officer for Wholesum and has been serving in an acting capacity since the fall of last year. The Organic Produce Association consists of members in the organic produce industry who focus on science-based policymaking and the ability to be innovative while respecting the tradition of organics and the integrity of the USDA Organic Seal. Crisantes, a trained agronomist, has worked for more than 20 years in the organic produce industry, growing certified organic tomatoes, peppers, squash, cucumbers, and eggplants at his family's third-generation farming operation. Wholesum currently supports over 21.8 million square feet of greenhouses and grows 2,500 acres of in-ground produce. Crisantes says, "I look forward to working with all our OPA members to address key issues with the goal of expanding the production and consumption of organic produce." *********************************************************************************** Fuel Prices Decline Again The nation's average gas price declined for the thirteenth consecutive week, down 7.6 cents from a week ago to $3.67 per gallon. The national average is down 26.9 cents from a month ago but 52.3 cents higher than a year ago. The national average diesel price declined 5.5 cents last week and stands at $5.01 per gallon. However, Gas Buddy's Patrick De Haan says, "we're seeing drastically different price behaviors from coast to coast, with some areas seeing noticeable increases while others are seeing decreases." Refinery issues in California are leading to increases in areas supplied by the state's refineries, including Arizona, Nevada, Oregon, Washington and California. Gasoline supply remains tight for the East Coast with some modest moves up, while prices continue to edge lower in the Plains, South and areas of the Great Lakes. Last week saw an 8.8-million-barrel rise in U.S. oil inventories, while U.S. gasoline demand fell 5.4 percent last week.
| Rural Advocate News | Tuesday September 13, 2022 |
Tuesday Watch List Markets The U.S. Labor Department will release its report on consumer prices for August at 7:30 a.m. CDT Tuesday, watched by a big crowd looking for clues to future Fed policy. Traders are still digesting USDA's new estimates on Monday and will keep an eye on weather as well as the response of outside markets to Tuesday's CPI report. The Treasury department reports on the federal budget at 1 p.m. Weather A ridge of high pressure is moving from the Rockies into the Plains on Tuesday and temperatures will rise in response. The ridge also comes with dryness as it pushes a system into the Northeast. The heat and dryness will exacerbate drought conditions in the Plains for winter wheat planting, but will help to dry-down corn and soybeans for harvest. Across the West, several small disturbances will make for some showers which will move northeast through the Northern Plains and Canadian Prairies over the next several days.
| Rural Advocate News | Monday September 12, 2022 |
July Beef Exports Top $1 Billion, Pork Exports Behind Last Year American beef exports again topped the $1 billion mark in July and posted the fifth-largest volume ever. July beef exports totaled over 126,500 metric tons, three percent higher year-over-year. Export value topped the $1 billion mark for a sixth time this year, finishing at $1.006 billion in July. “Global demand for U.S. beef continues to be amazingly resilient, especially at the retail level,” says U.S. Meat Export Federation President and CEO Dan Halstrom. Export value per head of fed slaughter is on a record pace at more than $475. U.S. pork exports topped 208,000 metric tons in July, six percent lower than last year. July export value reached $625 million, five percent lower than 2021. “July pork exports were below last year, but the good news is the per-unit price of U.S. pork is trending higher in the international marketplace.” July lamb muscle cuts reached 161 metric tons, up from 49 last year. *********************************************************************************** Applications Open for the Rural High-Speed Internet Program Ag Secretary Tom Vilsack announced that USDA is accepting applications for its ReConnect Program loans and grants to expand access to high-speed internet for millions of people in rural America. The agency is making over $1 billion available for the program, a critical piece of the effort to connect every American to affordable and reliable high-speed internet. “Ensuring that the people of rural America get connected with reliable high-speed internet brings new and innovative ideas to the rest of the country,” Vilsack says. “That’s why high-speed internet is an important part of USDA Rural Development’s work with rural communities.” USDA is accepting applications for loans with available funds of $150 million, grants with available funds of $700 million, and combination loan/grant awards using $300 million under the ReConnect Program. “Reliable high-speed internet opens the world’s marketplace to rural business owners,” Vilsack adds. The application deadline is November 2. Go to rd.usda.gov for information. *********************************************************************************** GAO Reviews the Coronavirus Food Assistance Program During 2020 and 2021, the USDA’s Farm Service Agency provided $31 billion in aid to more than 950,000 producers of agricultural commodities, including crops, dairy, and livestock. The goal was to help offset losses and costs associated with COVID-19. The Government Accountability Office found problems in the process the FSA used to review claims under CFAP submitted by producers. For example, the agency reviewed the claims of 90 producers, and over half didn’t provide support for their payments. GAO says $661.5 million distributed primarily for livestock and other commodities went to high-income producers whose average annual adjusted gross income exceeded $900,000 over three years. The average payment per producer was highest in California at over $97,600. Iowa, California, and Nebraska each received over $2 billion in CFAP payments. Eight other states, including Minnesota, Kansas, and South Dakota received at least $1 billion. Seven individual operations received at least $3 million in total payments. *********************************************************************************** NGFA Wants Intervention in Rail Disputes The National Grain and Feed Association asked Congress to intervene, if necessary, to prevent any interruptions of rail service that could occur if negotiations fail between carriers and labor groups. Last week, the association sent letters to the leaders of the Senate Committee on Commerce, Science, Transportation, and the House Transportation and Infrastructure Committee. Association members want Congress to prevent a rail stoppage “of any duration,” noting that uninterrupted rail service is vital to the American agricultural economy. “The U.S. rail network moves critical agricultural inputs and significant quantities of agricultural products,” the letter says. “These essential items are transported by rail to domestic facilities and ports for exports abroad. A complete stoppage of the rail system would lead to shutdowns or slowdowns of rail-dependent facilities resulting in devastating consequences to the country’s national and global security.” They also say most freight railroads lack the capacity to make up for any downtime. *********************************************************************************** U.S. Meets with Indo-Pacific Framework Partners U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo hosted counterparts from the 13 Indo-Pacific Economic Framework partner countries. Those partners represent over 40 percent of the world’s economy. At the first official in-person Ministerial meeting, the ministers had positive and constructive discussions and announced a substantial milestone in their pursuit of the framework. “This meeting was a chance to deepen our partnerships and fill in the details about how we will work collectively to address the challenges and opportunities that will define the 21st century,” says Tai. As the meeting concluded, the partners reached a consensus on ministerial statements for each of the four IPEF pillars, including trade, supply chains, clean economies, and fair economies. “After days of intensive discussions, we made real progress toward that goal, and I’m excited to continue developing this Framework, which will unlock enormous economic value for our region and be an example for the world.” *********************************************************************************** Federal Reserve Makes Observations on Ag Economy Last week, the Federal Reserve Board released its August Beige Book update, which summarizes the Fed’s commentary on current economic conditions. The report included several observations on the U.S. agricultural economy. In the Sixth District around Atlanta, demand for agricultural products remains strong. Hot weather and dry spells damaged crop yields, particularly corn. In the Seventh District of Chicago, ag income prospects for 2022 were little changed as most producers will likely turn a profit. In the Eighth District of St. Louis, conditions got moderately worse since the previous report, and finding enough quality labor is listed as the biggest concern. Agricultural conditions in the Ninth District around Minneapolis strengthened modestly since the previous report, and 80 percent of farm lenders said incomes in their area increased in the second quarter compared to last year. In the Eleventh District around Dallas, overall drought conditions slightly improved after some significant rain in August.
| Rural Advocate News | Monday September 12, 2022 |
Monday Watch List Markets Traders will return from the weekend, checking the latest weather forecasts and news from around the world, especially events in Ukraine and China. USDA's weekly export inspections will be out at 10 a.m. CDT, followed by the Crop Production and WASDE reports at 11 a.m. USDA's Crop Progress report will be out at 3 p.m. Weather A storm system wound up near Chicago will move through the northern Midwest on Monday, with areas of showers arcing through the East Coast and down into the Southeast as the day heats up. Heavier rain has been falling over northern Illinois and southern Wisconsin, where some flooding has occurred and may continue today. Cooler temperatures have filled in behind the system across the Corn Belt over the weekend but will be short-lived as the western heat pushes eastward this week.
| Rural Advocate News | Friday September 9, 2022 |
McKalip Nomination for Chief Ag Negotiator Heads to Full Senate The Senate Finance Committee unanimously voted to move Doug McKalip’s nomination to be USTR’s Chief Agricultural Negotiator to the full Senate for a final vote. U.S. agriculture groups reacted positively to the news. “It’s clear there is bipartisan momentum behind both his nomination and the need to open markets for America’s farmers who rely on trade,” says Brian Kuehl (KEEL), Farmers For Free Trade Executive Director. American Farm Bureau President Zippy Duvall says the vote comes at “an important time” as current and future trading partners look to the U.S. to help meet the growing demand for food, fuel, and fiber. The U.S. Meat Export Federation is asking the Senate for swift approval of McKalip in the upcoming vote. McKalip’s future boss, U.S. Trade Representative Katherine Tai, says, “Doug’s decades of public service and unparalleled knowledge of agricultural and food security issues will be a major asset to our office.” *********************************************************************************** Retailers “Moderately Optimistic” About Fall Fertilizer Sales 2022 has been a challenge for ag retailers and their customers due to supply shortages and high prices. Crop Life magazine says global uncertainty has affected key fertilizer sources like Russia, China, and Ukraine, adding even more stress to the marketplace last spring. Looking ahead to fall, the view of most ag retailers is mixed. Steven Page of EDC Ag Products in Texas says, “We’re bullish on fertilizer sales this fall. Higher-than-expected commodity prices and falling fertilizer prices mean end users will be replacing nutrients in their soil.” Matthew Taylor of Nutrien Ag Solutions in Colorado says he’s also optimistic. “Application season should be strong as long as there’s a good application window,” he says. “Continuing supply chain challenges and overseas events are still a drag on the industry, but overall, the fall application season should be good.” Even less-than-positive retailers say their outlook could change with the right conditions. *********************************************************************************** APHIS Reviews Genetically-Modified Tomato The USDA’s Animal and Plant Health Inspection Service reviewed a new tomato variety from Norfolk Plant Sciences. The tomato was modified to alter its color to purple and enhance the nutritional quality. The agency says it found the plant is unlikely to pose an increased plant pest risk compared to other cultivated tomatoes and is not subject to regulation. That means, from a plant pest risk perspective, this plant may be safely grown and bred in the U.S. The gene-edited tomato is high in antioxidants believed to fight cancer and heart disease. A Rabobank report says interest in specialty crops should continue growing worldwide. Gene-editing technology like CRISPR (crisper) lets scientists design a plant without introducing foreign genes and should help reduce the recent controversy over GMOs. “We expect that specialty crops like fruits and vegetables with output traits to be among the first new GMOs to hit the market,” the report says. *********************************************************************************** Dairy Checkoff Competition Focusing on “Calming Benefits” The Dairy Management Incorporated’s New Product Competition is accepting applications for innovative products that focus on dairy’s qualities related to calming. The program used to be known as the National Dairy Council New Product Competition. It’s open to U.S. undergraduate and graduate students to develop products in line with industry and consumer insights to uncover innovative dairy-based products that offer calming benefits. Research shows that, with a heightened emphasis on mental and emotional well-being, consumers are looking for products that calm. There is projected growth associated with products that calm, and these are of particular interest to Gen Z consumers. Successful entries will demonstrate innovation and provide value to consumers. The judging panel includes experts from across the dairy industry. The winning team will earn $8,000, with second place receiving $5,000, and $3,000 going to third place. The application deadline is January 16, 2023. For more information, go to usdairy.com. *********************************************************************************** Vilsack Addresses 2022 Public Final Charge Rule The Biden administration and the Department of Homeland Security released the 2022 Public Charge Final Rule. Ag Secretary Tom Vilsack says the move represents an important step towards ensuring that all who are eligible for USDA’s nutrition assistance programs can access their crucial benefits. The rule clarifies the policy that’s been in place for most of the last 20 years, definitively allowing eligible immigrants to apply for and receive non-cash government benefits like SNAP or WIC without fear of any negative impact on their immigration status. “This action ensures faithful implementation of the law, one that will have a meaningful impact on immigrant communities and help give them the nourishment to lead happier and healthier lives,” Vilsack says. “Immigrants and their families have the right to access the programs for which Congress has made them eligible.” He also says it’s a chance to advance nutrition security for generations to come. *********************************************************************************** CoBank: Avian Flu Still a Threat to U.S. Poultry Supplies A report from CoBank’s Knowledge Exchange says the widespread outbreak of Highly Pathogenic Avian Influenza that hit U.S. poultry production has subsided. Case numbers significantly dropped as temperatures rose and the migratory season for wild birds ended. However, the risk of another outbreak this fall remains elevated, and the stakes for poultry producers will be high. Poultry product values had increased substantially before this year’s outbreak due to tight supplies and strong consumer demand for animal protein products. The added burden of supply shocks caused by HPAI made tight market conditions even worse, sending values skyrocketing. ‘Fortunately for U.S. poultry exporters, the current world views on HPAI trade restrictions have relaxed since the last major outbreak,” says Brian Earnest, lead animal protein economist with CoBank. The 2014-2015 HPAI outbreak forced producers to euthanize 43.2 million laying hens and 7.3 million turkeys. The cost to the industry was estimated at $1.6 billion.
| Rural Advocate News | Friday September 9, 2022 |
Friday Watch List Markets There are no significant reports on Friday's docket. While the weather forecasts are becoming less important for this year's row crops, traders are still keeping an eye out for winter wheat planting and spring wheat harvest conditions. Traders also continue to keep watch over news from Ukraine, Russia and China and outside markets. Weather A strong cold front has pushed through the Northern Plains and is moving through the Central Plains and Upper Midwest early Friday. The front is bringing in a shot of much colder fall-like temperatures and bands of showers are developing behind the front as well. Temperatures out ahead of the front still remain above normal, which continues to stress the late stages of filling corn and soybeans and prevent much winter wheat planting from occurring as well.
| Rural Advocate News | Thursday September 8, 2022 |
$400 Million Available to Create Regional Food Business Centers Agriculture Secretary Tom Vilsack Wednesday announced the availability of approximately $400 million to create USDA Regional Food Business Centers. The centers will provide local and regional food systems coordination, technical assistance, and capacity-building services. Vilsack says, "Regional Food Business Centers will serve as USDA's cornerstone in the development of the local and regional supply chains." USDA will fund at least six regional centers, including a national tribal center and at least one center serving each of three targeted areas. The targeted areas include counties on the U.S./Mexico border, persistent poverty communities in the Delta and the Southeast, high-need areas of Appalachia, and centers in other regions. USDA Marketing and Regulatory Programs Undersecretary Jenny Lester Moffitt says the new centers “will decrease barriers and improve supply chain linkages.” The effort seeks to help farmers and businesses access new markets and navigate federal, state and local resources. *********************************************************************************** NCBA Supports Livestock Regulatory Protection Act The National Cattlemen’s Beef Association voiced support to the Senate Environment and Public Works Committee regarding the Livestock Regulatory Protection Act Wednesday. During a committee hearing, NCBA Chief Counsel Mary-Thomas Hart told lawmakers, “NCBA strongly supports the Livestock Regulatory Protection Act, which protects farmers and ranchers from onerous regulation.” The legislation aims to prevent the Environmental Protection Agency from issuing Clean Air Act Title V (5) permits for emissions like carbon dioxide, nitrogen oxide, water vapor, or methane that result from livestock production. NCBA says the emissions are naturally occurring due to cattle’s biological functions and cattle producers continue to employ innovative practices to mitigate the impact of these emissions on the environment. NCBA adds methane emissions from cattle account for just two percent of total U.S. emissions. American Farm Bureau Federation Vice President Scott VanderWal also voiced support for the legislation during the hearing. *********************************************************************************** U.S. Household Food Insecurity in 2021 Unchanged From 2020 Data from USDA’s Economic Research Service released Wednesday shows in 2021, 89.8 percent of U.S. households were food secure throughout the entire year. Food secure means they had access to food at all times for all household members during the year. The remaining 10.2 percent of households were food insecure at least some time during the year, including 3.8 percent that experienced very low food security. In households reporting very low food security, the food intake of one or more household members was reduced, and their eating patterns were disrupted at times because the household lacked money and other resources for obtaining food. The 2021 prevalence of food insecurity, at 10.2 percent, was statistically unchanged from 2020. Very low food security was not significantly different from its 3.9 percent rate in 2020. The Economic Research Service monitors the food security status of households in the United States through an annual nationwide survey. *********************************************************************************** Lawmakers Seek Additional Wildfire Fighting Resources A group of western lawmakers this week asked the Department of Agriculture and Interior Department for additional wildfire fighting resources. The 25 lawmakers asked the federal government to assist in continuing to fight fires aggressively, communicate clearly and take administrative steps now to prepare additional personnel for when they are needed. In a letter to Agriculture Secretary Tom Vilsack and Interior Secretary Deb Haaland, the lawmakers say, “As you are well aware, wildfires do not respect jurisdictional boundaries, so constant communication between public and private entities is crucial.” The letter points out that recent reports suggest the United States Forest Service faces a significant wildfire staffing shortfall despite the recent pay increase included in the Infrastructure Investment and Jobs Act. USDA and DOI can surge additional personnel to help when the firefighting season is underway. The lawmakers say, “we ask you do everything you can to start that process now.” *********************************************************************************** Gavins Point Winter Releases Will be at Minimum Rates Drought conditions along the Missouri River Basin mean winter releases from Gavins Point Dam will be at a minimum 12,000 cubic feet per second this winter. While July brought much-needed moisture to the Missouri River Basin, August returned to the warm and dry conditions seen over the last two seasons. August runoff was 0.9-million-acre-feet, 62 percent of average above Sioux City, and 0.6 million-acre-feet, or 49 percent of average above Gavins Point Dam. The 2022 calendar year forecast for the upper basin, updated on September 1, is 20.2 million acre-feet million-acre feet, 78 percent of average. The average annual runoff for the upper basin is 25.8-million-acre-feet. According to the National Drought Mitigation Center, drought conditions in the basin have worsened over the past month. Seventy-four percent of the basin is experiencing abnormally dry or drought conditions, with seven percent of that being extreme or exceptional drought. *********************************************************************************** Farm Bureau Foundation Partnering with Grow with Google The American Farm Bureau Foundation for Agriculture has partnered with Grow with Google to train 2,000 teachers on digital skills. The effort seeks to reach 200,000 students in rural communities by the end of the 2023 school year. The Foundation is bolstering agricultural education curriculum through the Farm Bureau Foundation Fellows Program, a fellowship that will allow educators in agricultural regions to teach students where their food comes from. Throughout the eight-month program, fellows will develop place-based curriculum that incorporates agriculture, technology and key digital skills into an Applied Digital Skills lessons. The lessons will be available, for free, to all educators interested in teaching students about food, fuel and fiber. Foundation executive director Daniel Meloy says, “We hope this program empowers teachers to introduce their students to the exciting world of agriculture, while also teaching them an array of technical skills.” To learn more and apply, visit agfoundation.org.
| Rural Advocate News | Thursday September 8, 2022 |
Thursday Watch List Markets In case you missed the earlier memo, USDA is having technical difficulties and won't provide a new weekly export sales report until September 15. There will be a report of U.S. weekly jobless claims at 7:30 a.m. CDT Thursday, along with an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly natural gas storage is due out at 9:30 a.m., followed by weekly energy inventories at 10 a.m. Weather Hot temperatures continue from the West into the Plains and Upper Midwest Thursday with triple-digit readings yet again in some areas. However, a strong cold front is dipping down from the Canadian Prairies and will be bringing much colder air with it. Temperatures will fall more than 20 degrees behind the front and narrow bands of showers will develop in the Northern Plains. Other areas of the country will remain dry with drought increasing in the Central and Southern Plains.
| Rural Advocate News | Wednesday September 7, 2022 |
August Ag Economy Barometer Increases Farmer sentiment improved in August as the Purdue-CME Group Ag Economy Barometer rose 14 points above its July reading to 117. Both the Index of Current Conditions and the Index of Future Expectations increased last month. Producers were less worried about their farm’s financial situation than in July, although they remain concerned about a possible cost-price squeeze. When asked about their biggest concerns for the next year, more than half of respondents chose higher input costs. Other concerns include rising interest rates, input availability, and lower output prices. Despite this month's improvement in sentiment, all three indices remain well below year-ago levels. Finally, this month's survey revealed an uptick in the percentage of farmers engaged with companies offering payments to sequester carbon. However, just one percent of respondents said they've signed a carbon contract, with the majority of those choosing not to sign, suggesting that payment rates offered remain too low. *********************************************************************************** USDA Seeks Livestock Disease Indemnity Valuation Comments The Department of Agriculture Tuesday announced an advance notice of proposed rulemaking on a new approach to indemnity valuation and a new indemnity framework. The advanced notice describes two structural changes to the indemnity regulations. The first is the use of an annual indemnity value table to standardize the indemnification process and resolve discrepancies between disease programs. Under the new approach, APHIS would collaborate with other USDA agencies, including the Farm Service Agency’s Livestock Indemnity Program, to develop USDA indemnity values and the methodology to determine them. The values would be published online annually. Second, the proposal describes an approach to standardize allowances for appraisal when an indemnity value cannot be calculated using the tables or when a producer elects to appeal the value based on extraordinary circumstances. This approach would resolve known challenges with indemnification based on fair market appraisal by an appraiser. The public comment period is open through November 6, 2022. *********************************************************************************** USDA NASS to Review Acreage Information USDA’s National Agricultural Statistics Service announced Tuesday the agency will review all available acreage data for select crops. USDA NASS will review planted and harvested acreage for chickpeas, corn, cotton, dry edible peas, lentils, peanuts, rice, sorghum, soybeans, and sugarbeets, in preparation for the September Crop Production report. The reviewed information includes survey data, satellite-based data, and the latest information from USDA’s Farm Service Agency and Risk Management Agency. If the data review justifies any changes, NASS will publish updated planted and harvested acreage estimates in the September 12 Crop Production report. USDA says it is a normal practice for NASS to review data in September for many of these crops. The review typically takes place in October for corn, sorghum, soybeans, and sugarbeets. However, USDA says the datasets are sufficiently complete this year to consider adjustments in September. In October, NASS will review acreage for canola, dry edible beans, and sunflowers. *********************************************************************************** Farmers Intend to Plant More Corn Next Year U.S. farmers plan to grow five percent more corn acres next year, according to a recent Farm Futures survey. The survey found farmers expect to plant 94.3 million acres of corn next spring, an increase of 4.5 million acres compared to 2022. The survey collected data from July 13 to August 1, 2022, from nearly 700 farmers. If the estimate proves correct, it will be the largest corn acreage planted in the United States since 2013, when farmers planted 95.4 million acres of corn. The Farm Futures survey reports farmers intend to plant 97.3 million acres of soybeans in 2023, down nearly 700,000 acres from the 2022 crop year. The survey also shows an increase in wheat acres in 2023, at 36.6 million acres, up 7.5 percent from 2022. Combined, corn, soybeans and wheat acres total 230.5 million acres, according to the survey, up two percent from the 224.8 million acres planted this year. *********************************************************************************** Food Insecurity in Africa Peaked Early During Pandemic At the start of the COVID-19 pandemic, projections indicated the number of people experiencing food insecurity would increase. In a recent USDA Economic Research Service study, researchers used World Bank household survey data collected during the pandemic to assess food insecurity in four sub-Saharan Africa countries. Researchers tracked three levels of food insecurity intensity—mild, moderate, and severe—based on household responses to the Food Insecurity Experience Scale. They observed a sharp increase in reported food insecurity in the early months of the pandemic. In Ethiopia and Nigeria, the rate of moderate food insecurity reported increased from about zero to between 30 and 70 percent by June 2020. In Burkina Faso (boo-keen-uh fah-so) and Malawi (Muh-louhg-ee), where data was available beyond 2020, researchers observed gradual declines in food insecurity. At the end of June 2021, about 15 percent of households in Burkina Faso still reported moderate food insecurity, as did about 50 percent of Malawi households. *********************************************************************************** Vytelle Awarded for Global Sustainability The Business Intelligence Group Tuesday named Vytelle, a precision livestock company, as a Sustainability Leadership Award winner in the 2022 Sustainability Awards program. The Sustainability Awards honor those who have made sustainability an integral part of their business practice or overall mission. The global cattle industry is facing what Vytelle calls the triple challenge. Farmers are facing a growing demand for protein driven by the upsurge of consumers demanding meat and milk be produced sustainably. This means farmers must improve and increase productivity, while also improving efficiency by producing with less. Vytelle has built the first integrated livestock technology platform to accelerate genetic progress in cattle. Farmers who use the platform to identify their most valuable and elite genetics will increase the reliability of their intended mating decisions and accelerate their genetic outcomes. Vytelle Chief Executive Officer Kerryann Kocher says, “We’re honored to receive the Sustainability Leadership Award and continue our partnerships with progressive cattle farmers to deliver our mission.”
| Rural Advocate News | Wednesday September 7, 2022 |
Wednesday Watch List Markets The launch of the iPhone 14 is expected Wednesday, a day when there shouldn't be much competition from other news. At 7:30 a.m. CDT Wednesday, the U.S. Commerce Department releases the trade deficit for July and provides more detailed export data for USDA to release later Wednesday morning. The Federal Reserve's Beige Book follows at 1 p.m. Traders will keep an eye on news from Ukraine and China, as well as the latest weather forecasts. Weather A ridge of high pressure continues to have a strong foothold in the western U.S. where heat continues. The heat has leaked out into the Plains as well in advance of the next system that will move through the Canadian Prairies today. Some isolated showers will be found there as well as into the Southeast, otherwise most of the country will be dry today.
| Rural Advocate News | Tuesday September 6, 2022 |
World Food Prices Continue Falling as Supply Levels Rise Global food prices dropped for a fifth-straight month after a seasonal rise in supplies took place and demand dropped for some products. The northern hemisphere wheat harvest is helping to ease supply concerns as more grain moves out of Ukraine. A U.N. index of world food costs dropped 1.9 percent in August and remains at its lowest level since January. While consumers will feel some relief, the declines aren’t as sharp as they were in July, when food prices dropped the most since 2008. Food prices do remain higher than last year. Food costs fell across the board last month, with vegetable oils dropping slightly below last year’s level. More palm oil supplies from Indonesia and seasonally rising outputs in southeast Asia helped to lower prices. Import demand for sunflower oil is subdued. Dairy stocks remained adequate. Major poultry importers reduced purchases, and domestic bovine meat demand in key exporters was weak. *********************************************************************************** Real Estate Lending Pushes Farm Debit Higher The Kansas City Fed says strong growth in farm real estate debt pushed agricultural loan balances higher at commercial banks in the second quarter. Outstanding farm debt increased by five percent from last year, the fastest pace in almost six years. While agricultural real estate loans continued to build, production lending rose more modestly following subdued demand in recent years. Loan performance continued to improve. Recent loan growth supported a slight improvement in the interest margins and income at agricultural banks from last quarter, but bank liquidity remained abundant. The agricultural economy remained steady over the past quarter providing ongoing support to farm finances. With substantially higher production costs and weather risks, incomes could be pressured if commodity prices drop more notably. Despite some growing risks, farm balance sheets remained strong alongside high liquidity, and a sharp increase in farm real estate values also continued to support agricultural credit conditions. *********************************************************************************** California Joins Opposition to Foreign Land Ownership The California legislature passed a bill outlawing land sales to foreign countries to help protect the nation’s food supply. The Washington Examiner says California has a large Central Valley farm belt, where two-thirds of the nation’s fruits and nuts are grown. “Food can, and is, being used as a weapon like we’re seeing in Ukraine,” says the bill’s author, state Senator Melissa Hurtado. “Recent reports have shown that a nation could get leverage by acquiring agricultural land and creating bioweapons that impact our food chain.” The bill would exempt land owned by a foreign government before January 1. It would also direct the state’s Ag Department to release annual reports on the amount of foreign farmland utilized, the type of usage, and “any legislative, regulatory, or administrative policy recommendations in light of the information from the annual report.” Bill supporters say foreign investments in ag land put U.S. food security at risk. *********************************************************************************** USDA Extends WIC-Related Formula Flexibilities The USDA is extending a key funding flexibility in the WIC program that’s allowed state agencies and their infant formula manufacturers to work together to provide more options for needy families. Under this flexibility that’s now extended to the end of October, USDA is covering the added cost of non-contract formula to make it financially feasible for states to allow WIC participants to buy alternate sizes, forms, or brand of infant formula. “USDA is committed to maintaining flexibilities to provide continued support to WIC families as the nationwide supply of infant formula recovers,” says Ag Secretary Tom Vilsack. “WIC families are counting on us, and while the supply of formula is improving, the extended flexibilities will make sure those families can find the formula they need for their babies.” To make the extended flexibility economically feasible, USDA is covering the additional costs of these alternate formulas while supplies remain impacted. *********************************************************************************** EPA Proposes Stopping Authorized Use of Certain Pesticide Ingredients The Environmental Protection Agency is proposing to remove 12 chemicals known as PFAS from the current list of inert ingredients approved for use in pesticides to better protect people and the environment. “Exposure to PFAS is an urgent public health and environmental issue in our country, and we’re continuing to work aggressively to reduce the use of these dangerous chemicals,” says Michael Freedhoff, Assistant Administrator for the Office of Chemical Safety and Pollution Prevention. “Ensuring that these 12 chemicals can no longer be used in pesticides is an important step to protect workers, the public, and the planet.” EPA also says it will take a renewed look at previous PFAS decisions and do a thorough review of its list of chemical substances that have been approved for use as inert ingredients in pesticide products. Those products contain at least one active ingredient and other intentionally-added inert ingredients that improve product performance. *********************************************************************************** Three Years of Biofuel Blending Mandates Coming in November The Biden administration’s Environmental Protection Agency will announce a rule this year detailing annual biofuel-blending mandates for three years instead of just one year. Three sources told Reuters that the multi-year announcement will provide longer-term certainty to the refining and biofuel industries. Reuters says they’ve been battling over the Renewable Fuel Standard’s annual mandates since it first began. One source who requested anonymity says, “They’re trying to put together a proposal for 2023, 2024, and 2025, where once they have the proposals together, then they don’t have to go back in and don’t have to change or modify the volumes.” According to a legal document filed in July, the EPA has been ordered to propose a rulemaking for 2023 mandates by November 16. While Congress has set the mandates since the RFS began, the EPA will have the authority to set multi-year mandates and make other changes starting next year.
| Rural Advocate News | Tuesday September 6, 2022 |
Monday Watch List Markets Back from the three-day weekend, traders will be checking up on the latest weather forecasts and any market-related news from over the weekend, including the decision from OPEC's meeting on Monday. USDA's weekly report of export inspections will be out at 10 a.m. CDT Tuesday, followed by USDA's Crop Progress report at 3 p.m. Weather An old system from the weekend remains a little active on Tuesday, with isolated showers across the southeastern Midwest down to the Southeast on Tuesday. The Plains continue to be dry with heat for much of the region that continues to sap soil moisture ahead of winter wheat planting.
| Rural Advocate News | Friday September 2, 2022 |
USDA Says Farm Profits To Reach Near-Record High in 2022 USDA’s Economic Research Service forecasts inflation-adjusted U.S. net cash farm income to increase by $13.5 billion or 8.7 percent from 2021. Net cash farm income is gross cash income minus cash expenses and will reach $168.5 billion in 2022, the highest level since 2012. In comparison, net farm income is forecast to drop by almost $1 billion from 2021 to $147.7 billion this year. That drop comes after net farm income increased by $44 billion in 2021 to the highest level since 2013. Net farm income is a broader measure of farm sector profitability that incorporates noncash items, including inventory changes, economic depreciation, and gross rental income. Both cash receipts and expenses are forecast to increase. Cash receipts for farm commodities are projected to rise by $66.3 billion or 14 percent from the previous year to reach $525.3 billion this year. Production expenses will also increase by $44 billion to $437.3 billion. *********************************************************************************** Brazil Soybean Acres to Top 100 Million Brazilian farmers will start planting corn, soybeans, and many other crops in September and October. CONAB (KOH-nab), the country’s largest ag forecaster, says if the weather cooperates, the 2022-2023 Brazilian harvest could be the largest ever. During the upcoming season, CONAB says Brazil’s farmers will produce more than 300 million tons of soybeans, corn, cotton, rice, wheat, and soybeans. That’s 14 percent higher than in 2021, during which Brazil’s farmers brought in an estimated 271.4 million tons of grain, an all-time high. The growth of Brazil’s crops is attributed to two factors, including a 2.5 percent rise in planted area and 11 percent higher yields versus 2022. While production costs will be higher in the upcoming season, Brazilian farmers will benefit from high commodity prices, robust global demand, and a favorable exchange rate. Soybeans make up almost half of the total grains produced in Brazil and are projected to reach 5.5 million bushels. *********************************************************************************** First “Triple-Dip” La Nina in This Century The World Meteorological Association says the La Nina weather pattern will last through the end of 2022. That’s the first time this century it will have lasted for three consecutive winters in the northern hemisphere. La Nina conditions in the tropical regions of the Pacific Ocean strengthened as trade winds intensified between July and August. The conditions are affecting temperatures and precipitation patterns and making drought conditions and flooding in different parts of the world that much worse. The current WMO forecast shows the current La Nina, which began in September 2020 and continuing during the next six months. La Nina refers to the cooling of ocean surface temperatures coupled with winds and rainfall. It almost always has the opposite effect of El Nino, which is the warm phase of the so-called El Nino Southern Oscillation. The WMO says it is “exceptional” to have three consecutive years with a La Nina weather pattern. *********************************************************************************** Book Teaches New Generation About the “Father of the Green Revolution” A new generation will learn about Norman Borlaug, the “Father of the Green Revolution,” thanks to the newest book from Feeding Minds Press. “Hero for the Hungry” is the story of Borlaug, who dedicated his life’s work to eradicating world hunger. “We are excited to introduce today’s young people to Norman Borlaug,” says Daniel Meloy, executive director of the American Farm Bureau Foundation, which runs the publishing venture. “With ‘Hero for the Hungry,’ we hope his story of science and true American grit inspires young readers to explore how they too can solve hunger issues.” The story follows Borlaug from his humble beginnings on a small farm in Iowa to groundbreaking innovation that helped feed millions in a time of famine by improving the productivity of wheat, earning him a Nobel Prize. “Hero for the Hungry” can be used in a variety of classrooms, including biology, science, agriculture, or history. *********************************************************************************** U.S. Cattlemen’s Association Announces 2022 Annual Meeting The U.S. Cattlemen’s Association invites everyone in the industry to its 15th Annual Meeting and Cattle Producer’s Forum in Nashville, Tennessee, December 8-10. On Friday, December 9th, policy committees and members will review the past year’s successes and determine policy goals for the upcoming year. With significant progress getting made on cattle market reform legislation this year, the Annual Meeting will be a critical time to reflect and prepare for the next session of Congress. On Saturday, December 10, USCA will host the premier Cattle Producer’s Forum to discuss current marketing trends. Following a Washington, D.C. update from USCA’s lobbying team, the group will hear from multiple cattle markets specialists talk about the 2023 market forecast. The forum will also host a Consumers’ Perspective Panel discussion, which will include the unlikely relationship between the digital currency Bitcoin and beef production. For more information or to sign up, go to cattlemensmeeting.square.site. *********************************************************************************** USGC Talks Biotech Corn With Japanese Regulators The U.S. Grains Council recently organized a trip to the U.S. for Japanese regulators involved in that country’s food, feed, and environmental approvals of biotech corn. While in the U.S., the group met with USGC staff, U.S. government regulators, biotech seed companies, and industry organizations. They also met with U.S. corn producers and companies involved in the production, distribution, and exports of U.S. corn to Japan. The meetings helped educate the Japanese regulators about biotech corn events in the pipeline for entry into Japan’s regulatory system in the future. They also learned how regulatory approvals and regulations need to be able to work with the U.S. corn production, distribution, and export systems. “The Council has been organizing trips for the biotech team even year since 2007,” says Tommy Hamamoto, USGC Director in Japan. “The knowledge and confidence they’ve gained have helped regulators to consistently make and maintain science-based regulatory decisions.”
| Rural Advocate News | Friday September 2, 2022 |
Friday Watch List Markets The U.S. Labor Department will have nonfarm payrolls and the U.S. unemployment rate out, both for the month of August at 7:30 a.m. CDT Friday. A report on U.S. factory orders follows at 9 a.m. As usual, traders remain interested in the latest weather forecasts and any news from Ukraine. Grain and livestock markets will close at their normal times Friday, but could exhibit stranger than usual behavior ahead of the three-day weekend. Weather A cold front moving into the Western Corn Belt is producing some shower activity Friday morning from Nebraska into Minnesota. The front is moving southeast, with showers extending from Kansas to Lake Superior. Some of these storms could be severe. Another low-pressure center moving out of Oklahoma and into the Ozarks is producing scattered showers and storms and is being pulled northeast throughout the day. Strong storms are not expected but rainfall will help some of the drought areas in this region. Otherwise, temperatures remain well above normal for most areas not directly behind the front and very hot in the West.
| Rural Advocate News | Thursday September 1, 2022 |
Vilsack Announces $21.9 Million to Strengthen Meat and Poultry Supply Chains USDA’s Agricultural Marketing Service Wednesday announced an additional $21.9 million for grant projects through the Meat and Poultry Inspection Readiness Grant Program. The funding awards 111 projects, bringing the program's total funding to $54.6 million. The funding will help strengthen and develop new market opportunities for meat and poultry processors throughout the United States. Facility improvements and expansions funded through the program will help processors obtain a Federal Grant of Inspection or qualify for a state’s Cooperative Interstate Shipment program. Achieving a Federal Grant of Inspection or operating under a Cooperative Interstate Shipment program allows meat and poultry processors to ship products across state lines, develop new markets, increase capacity, and better meet consumer and producer demand along the supply chain. USDA also encourages grant recipients to request assistance through the Meat and Poultry Processing Capacity Technical Assistance Program. The technical assistance program, launched in March of this year, connects participants to a nationwide network of resources and expertise. *********************************************************************************** USDA Updates Crop Insurance Plans to Broaden Access The Department of Agriculture is improving two of its most comprehensive risk management safety net programs. USDA announced the improvements Wednesday for the Whole-Farm Revenue Protection, and Micro Farm, making them more accessible to farmers. The improvements include doubling the maximum insurable revenue under Whole-Farm Revenue Protection, now $17 million, more than tripling the size of farm operations eligible for Micro Farm, now $350,000 and reducing paperwork requirements. The improvements are in direct response to feedback from stakeholders as USDA's Risk Management Agency recognizes the role these insurance options play for many producers, including specialty crop, organic and direct market producers. The Whole-Farm Revenue Protection program protects all eligible commodities on a farm under one insurance policy. The Micro Farm program provides a risk management safety net for all eligible commodities on a farm under one insurance policy, but on a smaller scale. The updates to both programs take effect in crop year 2023. *********************************************************************************** States and Territories to Issue $12.5 Billion in USDA’s Summer Child Food Benefits The Department of Agriculture partnered with 32 states and territories to provide summer food buying benefits to families with children. The states and territories will provide an estimated $12.5 billion in temporary nutrition benefits to approximately 32 million children. USDA Food and Nutrition Service administrator Cindy Long says, “Our hope is that all states will adopt the program, ensuring that all children have access to the healthy food they need and deserve.” Children are eligible for this temporary nutrition benefit, known as Summer P-EBT, if they are eligible for free or reduced-price meals during the school year, or if they are under age six and live in a household receiving SNAP benefits. The benefits are loaded onto a debit-type card that can be used to purchase food. Families of eligible children typically receive $391 per child for the summer, with higher rates for families in Alaska, Hawaii, and U.S. territories. *********************************************************************************** Economic Research Service: Textile Manufacturing Shifts Out of China China’s position as the top global cotton importer is weakening as cotton shipments flow into flourishing textile industries in competing countries. USDA’s Economic Research Service reports that soon after China joined the World Trade Organization in 2001, the nation’s textile manufacturers became the world’s leading importers of cotton. Following years of rising production costs, volatility from government intervention in the market, and government caps on the volume of imports, China’s cotton imports dropped from their peak of 24.5 million bales in 2011 to 4.4 million bales in 2015, before rebounding to 9.5 million bales in 2021. Meanwhile, competing countries, including Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey, expanded their textile industries and boosted cotton imports over the same period. These countries’ combined imports now exceed China’s volume of cotton imports. This increasing geographic diversification of global cotton demand has helped U.S. cotton exports to remain relatively robust despite volatility in China’s imports over the past decade. *********************************************************************************** USDA Announces No Actions Under Feedstock Flexibility Program The Commodity Credit Corporation does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2021, which runs from October 1, 2021, to September 30, 2022. The CCC is required by law to quarterly announce estimates of sugar to be purchased and sold under the Feedstock Flexibility Program based on crop and consumption forecasts. Federal law allows sugar processors to obtain loans from the Department of Agriculture with maturities of up to nine months when the sugarcane or sugar beet harvests begin. On loan maturity, the sugar processor may repay the loan in full or forfeit the sugar to USDA to satisfy the loan. Under the Feedstock Flexibility Program, if USDA is faced with the likelihood of loan forfeitures, it is required to purchase surplus sugar and sell it to bioenergy producers to reduce the surplus in the food use market and support sugar prices. *********************************************************************************** Peoples Company Launches Energy Management Division Peoples Company Wednesday announced the launch of its energy management division to help clients maximize and diversify revenue streams. The Peoples Company energy management division manages oil, natural gas, and renewable energy assets for its clients. The division offers Geographic Information System mapping, real-time client data portals, modernized revenue processing, and customized reporting. Experienced energy management professionals also help clients navigate complex issues like division orders, authorizations for expenditure, and joint interest billings to ensure their interests are protected. Peoples Company President Steve Bruere says, “Energy management is a highly specialized offering because each asset is unique and requires individualized service.” As Peoples Company continues its expansion across the country, Bruere noted that this new service offers clients a single firm to manage assets ranging from farmland to energy rights. Peoples Company’s energy management division will be based in Tulsa, Oklahoma. The company is self-descried as a full-service land transaction and management business licensed in all major agricultural regions.
| Rural Advocate News | Thursday September 1, 2022 |
Thursday Watch List Markets For a second consecutive Thursday, USDA will not issue a weekly export sales report due to technical difficulties and does not expect to have data available until Sept. 15. U.S. weekly jobless claims are due out at 7:30 a.m. CDT, the same time as a report on U.S. productivity in the second quarter and we get an update of the U.S. Drought Monitor. The Institute of Supply Management's index of U.S. manufacturing is due out at 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Weather While there may be some isolated to scattered showers and thunderstorms across the far South on Thursday, much of the rest of the country should be relatively quiet. That comes with a caveat as a small low-pressure center developed from Wednesday's storms in Nebraska and will move east through Iowa. There is some potential for showers and thunderstorms to develop with this feature Thursday. Otherwise, above-normal temperatures are forecast for many areas today as well, with near triple digits in the Northern Plains.
| Rural Advocate News | Wednesday August 31, 2022 |
USDA Releases Updated Trade Projections for 2022, 2023 The Department of Agriculture Tuesday released updated trade projections for the remainder of fiscal year 2022 and the first projections for fiscal year 2022. The outlook follows the federal fiscal year, which begins on October 1 and ends on September 30. Agriculture exports for 2023 are projected at $193.5 billion, with imports at $197 billion. The export forecast is $2.5 billion below the revised 2022 forecast. The decrease is primarily driven by lower exports of cotton, beef, and sorghum that are partially offset by higher exports of soybeans and horticultural products. For 2022, the export estimate of a record $196.0 billion represents an increase of $5.0 billion from May's projection, mainly due to increases in livestock, poultry, and dairy exports. USDA cautions that the global economic outlook for 2022 and 2023 is growing more uncertain due to the continued materialization of downside risks. Previous growth projections are moderated due to ongoing trade disruptions, above-target inflation rates, and rising energy prices. *********************************************************************************** USDA Awards Funding to Strengthen Markets for Agricultural Products The Department of Agriculture Tuesday awarded $11.2 million to 22 grant projects to strengthen and explore new market opportunities for U.S. food and agricultural products. The funding comes from USDA Agricultural Marketing Service programs. Jenny Lester Moffitt, USDA Undersecretary for Marketing and Regulatory Programs, says, “USDA is excited about funding projects that improve access to fresh, locally sourced food and strengthen market opportunities for local and regional producers.” Through the Acer Access and Development Program, USDA is awarding $5.9 million to fund 12 projects. Acer projects aim to improve consumer knowledge, awareness and understanding of the maple syrup industry and its products. Through the Federal State Marketing Improvement Program, USDA is awarding more than $1 million to five projects to explore new market opportunities for U.S. food and agriculture. And through the Micro-Grants for Food Security Program, USDA is awarding $4.4 million to agencies in Alaska, Hawaii, and other territories to increase the quantity and quality of locally grown food. *********************************************************************************** Major School Nutrition Program Spending Declined During Pandemic USDA's National School Lunch Program and School Breakfast Program typically make up the largest share of child nutrition program expenditures. In fiscal year 2019, before the COVID-19 pandemic, spending on the two programs amounted to about $18.7 billion, nearly 80 percent of the $23.6 billion spent on all child nutrition programs that year. However, school disruptions during the pandemic led to a decline in spending, to $13.9 billion in 2020 and $12.4 billion in 2021. The declines were partly due to many schools transitioning to the Summer Food Service Program and creating the temporary Pandemic Electronic Benefit Transfer program. Spending on the summer food program increased from nearly $500 million in 2019 to $10.7 billion in 2021. P-EBT spending reached $10.7 billion in 2020 and $28.3 billion in 2021. Although spending on the Child and Adult Care Food Program was relatively stable across the three years, the program’s share of child nutrition program spending declined from about 16 percent in 2019 to seven percent in 2021 as overall expenditures increased. *********************************************************************************** NAWG Responds to Lower Snake River Dams Report The National Association of Wheat Growers welcomes recommendations regarding dams along the Lower Snake River by Senator Patty Murray and Washington Governor Jay Inslee. The Democrats say in a joint statement, "it’s clear that breach is not an option right now.” NAWB CEO Chandler Goule responds, “We are glad the recommendations released by Senator Murray and Governor Inslee recognize the role these dams play in agriculture and acknowledge dam breaching is not feasible at present.” Goule adds, " However, we remain concerned and opposed to breaching as it would be detrimental to wheat growers across the region." NAWG says the dams play a vital role in providing a safe, efficient and affordable way for wheat farmers to get their product to market. Last month, NAWG filed a public comment outlining concern, whereby other modes of transportation cannot simply replace barging. Wheat farmers move grain most efficiently by using the waterway instead of rail or truck while reducing greenhouse gas emissions, according to the organization. *********************************************************************************** Western Ag Groups Seek Quick Action for IRA Water Conservation Funding Western agriculture groups ask the Biden administration to quickly implement Inflation Reduction Act spending allocated to responding to the ongoing drought. The IRA includes $4 billion for drought response in the west. The seven agriculture groups made the request in a letter to the Interior Department and Bureau of Reclamation. The letter encourages the administration to quickly release a Notice of Funding Availability with guidance to water managers currently developing drought response proposals and quickly deploy that funding to address the most urgent needs. The letter states, "The ability of agricultural producers to participate in any voluntary, compensated water reduction program becomes much more difficult, if not impossible, if not initiated and implemented soon." The letter also urges the administration to unite stakeholders and ensure "agriculture has a place at the table." The letter is signed by the Arizona, California, Colorado and Oregon Farm Bureaus, the Agribusiness and Water Council of Arizona, Family Farm Alliance and Western Grower. *********************************************************************************** Bison Increase Plant Diversity, Drought Resilience in Grasslands A Kansas State University-led study finds bison double plant diversity in a tallgrass prairie. The research involves more than 30 years of data collection and was recently published in the prestigious journal Proceedings of the National Academy of Science. The study found that plant communities also were resilient to the most extreme drought in four decades. These gains are now among the largest recorded increases in species richness because of grazing in grasslands globally, researchers said. The study occurred in the Flint Hills ecoregion, the largest remaining landscape of tallgrass prairie. Researchers examined plant community composition and diversity in three treatments that were designed to capture characteristic management regimes: no mega-grazers were present, bison were reintroduced and allowed to graze year-round, or domestic cattle were introduced and allowed to graze during the growing season. The study also found cattle have a positive impact on plant diversity, compared to having no large grazers present, although increases in plant species richness were significantly smaller than those caused by bison.
| Rural Advocate News | Wednesday August 31, 2022 |
Wednesday Watch List Markets At 9:30 a.m. CDT, the U.S. Energy Department will issue its weekly inventory report, including ethanol production. Traders remain attentive to weather, the war in Ukraine and the skittish mood of outside markets, facing another interest rate hike in September and an OPEC+ meeting on Monday, September 5. Weather A front has dragged down to Texas and the Gulf Coast for Wednesday, where showers will continue, especially in Texas. A few more showers and thunderstorms could pop up around Nebraska this afternoon and evening, but most areas to the north will be dry with rising temperatures.
| Rural Advocate News | Tuesday August 30, 2022 |
White House Announces Hunger Conference for September The White House Monday announced the date for its Conference on Hunger, Nutrition, and Health. The Conference is set for September 28, 2022, in Washington, DC. As the President announced in May, this will be the first Conference of this kind in more than 50 years. Millions of Americans are afflicted with food insecurity and diet-related diseases—including heart disease, obesity, and type 2 diabetes—which are some of the leading causes of death and disability in the U.S. Lack of access to healthy and affordable foods is one of many factors impacting hunger and diet-related diseases. The COVID-19 pandemic has exacerbated these challenges further. The Conference will bring government leaders, academics and activists together to end hunger and reduce diet-related diseases in the U.S. by 2030. The White House will also announce a national strategy at the Conference that identifies actions the government will take to drive transformative change and address the intersections between food, hunger, nutrition, and health. *********************************************************************************** USDA Announces Details for Upcoming Census of Agriculture America’s farmers and ranchers will soon have the opportunity to be represented in the nation's only comprehensive and impartial agriculture data for every state, county and territory. The Department of Agriculture will mail the 2022 Census of Agriculture to millions of agriculture producers across the 50 states and Puerto Rico this fall. The 2022 Census of Agriculture will be mailed in phases, starting with an invitation to respond online in November, followed by paper questionnaires in December. Farm operations of all sizes, urban and rural, which produced and sold, or normally would have sold, $1,000 or more of agricultural product in 2022 are included in the ag census. Collected in service to American agriculture since 1840 and now conducted every five years by USDA's National Agricultural Statistics Service, the Census of Agriculture tells the story and shows the value of U.S. agriculture. Changes to the 2022 questionnaire include new questions about the use of precision agriculture, hemp production, hair sheep, and updates to internet access questions. *********************************************************************************** Interest Expense Ratio for Agriculture Stays Even with 20-year Average USDA’s Economic Research Service reports the interest expense ratio of farms was 0.04 in 2020, remaining in line with the long-term trend and initial forecasts, despite the pandemic. The COVID-19 pandemic reduced demand for agricultural commodities. The interest expense ratio is calculated by dividing interest expenses by the sum of the value of production and Government payments for a given year. Interest expenses are the costs incurred by farm operations when debt is used to finance farm activities. A USDA forecast in February 2020 predicted interest expenses for 2020 at $18.0 billion, with a predicted interest expense ratio of 0.04. By February 2022, interest expenses for 2020 were estimated to be slightly higher than predicted at $19.4 billion. The February 2022 estimates also showed that while the value of production was lower than initially forecast, government payments were higher. The interest expense ratio was highest at 0.06 in 2000 and trended downward to a low of 0.03 multiple times from 2000 to 2020. *********************************************************************************** Corteva Announces 2022 Climate Positive Leaders Program Corteva Agriscience Monday announced that applications are available for its 2022 Climate Positive Leaders Program. The program recognizes farmers and ranchers who implement, scale and share climate-positive practices. The program will give the selected global and regional leaders tools and opportunities to broadly share their experiences and help accelerate the adoption of climate positive practices. Farmers and ranchers in Argentina, Australia, Brazil, Canada, France, India, Ireland, Kenya, New Zealand, Spain, the United Kingdom, and the United States are eligible to participate. Farmers can be nominated by local or regional grower groups, nonprofit organizations, universities, field or sales representatives, or other technology partners. The Global Leader recipients will receive a lifetime membership to Global Farmer Network, training and in-person participation in a Global Farmer Roundtable. Corteva will accept nominations for the program through November 30, 2022. You can find more information at Corteva.com. *********************************************************************************** EPA Issues Fuel Waiver for Four States Impacted by Bp Refinery Shutdown The Environmental Protection Agency over the weekend issued an emergency fuel waiver to help alleviate fuel shortages in four states impacted by a refinery shutdown. A BP oil refinery in Whiting, Indiana, shut down because of a fire at the facility. EPA waived the federal regulations and federally enforceable State Implementation Plan requirements for fuel volatility on gasoline sold in Illinois, Indiana, Michigan, and Wisconsin. The waiver will continue through September 15, 2022. The Clean Air Act allows EPA Administrator Michael Regan, in consultation with the Department of Energy, to waive certain fuel requirements to address shortages. Administrator Regan determined that extreme and unusual fuel supply circumstances exist and has granted a temporary waiver to help ensure that an adequate gasoline supply is available in the affected areas. EPA and DOE are continuing to actively monitor the fuel supply situation resulting from the Bp refinery shutdown and considering additional measures to alleviate the impact. *********************************************************************************** Fuel Prices Decline Again, Gas Down $1.20 From Peak U.S. fuel prices continued their decline for the 11th straight week, with gasoline down five cents a gallon to a national average of $3.81. GasBuddy reports the national average is down 39.8 cents from a month ago but 69.1 cents higher than a year ago. The national average price of diesel has increased 7.3 cents in the last week and stands at $5.04 per gallon. GasBuddy’s Patrick De Haan says, “Gas prices are now $1.20 per gallon lower than mid-June with Americans spending $450 million less on gasoline every day as a result.” However, some issues could change the course of fuel prices moving forward, including the shutdown of BP’s refinery in the Midwest. De Haan says, “While that refinery may get back online sooner rather than later, it’s not impossible that down the road the situation could impact prices in the region." The rest of the country, however, will see prices moderate.
| Rural Advocate News | Tuesday August 30, 2022 |
Tuesday Watch List Markets An index of U.S. home prices is due out at 8 a.m. CDT Tuesday, followed by an index of U.S. consumer confidence at 9 a.m. Traders will be watching the latest forecasts, checking the news from Ukraine and any clues from outside markets. Weather A cold front that produced widespread severe weather on Monday will continue to move south and east Tuesday. Though thunderstorms are not expected to be as strong as yesterday, there should be widespread coverage from Texas to the Northeast and points south of the front. Dryness and more seasonable temperatures are moving in behind the front, but readings still remain near or above normal for most areas.
| Rural Advocate News | Monday August 29, 2022 |
Ag Credit Conditions Stay Strong As Risks Grow The Kansas City Fed says agricultural credit conditions remained strong in the second quarter, but slower improvement is expected during the months ahead. Those bankers who responded to the Federal Reserve Survey of Agricultural Credit Conditions say farm income continued to increase. However, the pace of increase slowed in recent quarters, and further softening is expected going forward. Farm loan repayment rates continued to strengthen, but the pace of improvement also slowed. Following almost two years of acceleration, farmland values also showed signs of moderating as interest rates continued to increase. Strength in farm finances continued to support a positive outlook for agricultural credit conditions through the remainder of 2022, but risks to the farm economy are more noticeable. With a substantial increase in production costs over the past two years, profit margins for many producers could be squeezed by a sizeable decline in commodity prices. Balance sheets likely remain strong for 2022. *********************************************************************************** NCGA: New California Vehicle Requirements a Missed Opportunity Last week, the California Air Resources Board approved standards for vehicles made in the model year 2026 and later. In response to the announcement, the National Corn Growers Association says California regulators “missed an opportunity” to allow for more innovation and broaden low- and zero-emission solutions, in addition to the proposed electric vehicles, to maximize emission reductions while improving equity for consumers. “As NCGA told regulators during the rule-making process, constraining the vision of a zero-emission future prevents the state from tapping into the immediate and affordable environmental solutions that come from replacing more gasoline with low-carbon and low-cost ethanol in both current and new vehicles, including the electric plug-in hybrids, ” the organization says in a release. “Ethanol is on a path to net zero emissions, and NCGA will continue to work with and urge California to use all the tools in its toolbox as it addresses climate change and cuts harmful tailpipe emissions.” *********************************************************************************** Whole Foods Sued Over Deception in Antibiotic-Free Meat The nonprofit group Farm Forward joined a consumer class-action lawsuit against Whole Foods alleging that the retail giant is deceiving shoppers about beef products in its stores. Since 1981, Whole Foods has claimed that all of the animals within its supply chain are raised without antibiotics. However, an independent laboratory found antibiotic residue in “antibiotic-free” meat bought from a Whole Foods store in California. Antibiotic-free meat can cost as much as 20 percent or more than conventional meat, and surveys show 75 percent of consumers are willing to pay more for it. In April, Farm Forward released results of a program that tested Whole Foods meat for antibiotic residues. Among the findings, Farm Forward found residue of an antibiotic that can be used to promote growth in cattle in a meat product labeled “organic” and “antibiotic free.” Farm Forward says it has proof of deceptive marketing practices by Whole Foods. *********************************************************************************** Technical Difficulties for Weekly Export Sales Reporting Last week, the USDA’s Foreign Agricultural Service launched a new Export Sales Reporting and Maintenance System. This is a system through which U.S. exporters are required by law to report any sales transactions with buyers outside the U.S. for many key commodities. The information collected through the system is aggregated and reported to the public each week by the FAS. During the launch, FAS encountered challenges that affected the physical dissemination of the data as well as the data quality. As a result, the agency took the system offline and retracted the weekly export sales information that was passed out last week. Data integrity, credibility, and transparency are top priorities for FAS, and the timely and accurate reporting of agricultural export sales data is vital to effectively-functioning markets. FAS recognized the disruption and took steps immediately to rectify the situation. FAS intends to resolve the problems as soon as possible. *********************************************************************************** Chinese Government Tells Farmers to Replant or Switch Crops After Drought China’s record heatwave is beginning to disappear, and farmers are assessing the damage caused by the lengthy dry spell. Reuters says the Chinese government is urging its producers to replant or switch crops where they can. Over 70 days of extreme temperatures and low rainfall have hit the country’s crops hard. Rain is in the forecast over the next ten days, but farmers worry the heat has already done too much damage. In an emergency notice, the ag ministry called on the country’s farmers to harvest and store rice and take action to strengthen potential grain growth in the weeks ahead. In parts of the country where drought has already done damage, the government is asking its farmers to switch to late-fall crops like sweet potatoes. However, experts say that won’t be an easy task because nearby wells have been severely depleted of water, and some ponds have disappeared. *********************************************************************************** Glufosinate-Resistant Palmer Amaranth Found in Missouri University of Missouri Extension researchers have confirmed the state’s first case of glufosinate-resistant Palmer Amaranth in the Bootheel Region of Missouri. Palmer Amaranth spreads and adapts quickly to herbicides. Each weed produces up to one million seeds, which heightens the spread of resistance. The confirmation of Glufosinate resistance is a big concern for the state’s farmers because that resistance seems to be evolving at a quicker pace. Extension researcher Jim Heiser says, “Every mode of action that Palmer becomes resistant to seems to come at a quicker pace than the previous one.” He also warns farmers not to solely rely on herbicides to control weeds. He says to consider cultural practices for weed control, such as narrow row spacing for crops, the use of cover crops, and harvest weed seed management techniques. Palmer’s spread likely comes from used farm equipment like combines, custom harvesting crews, and feed and seed from other regions of the country.
| Rural Advocate News | Monday August 29, 2022 |
Monday Watch List Markets Traders will return from the weekend, checking the latest weather forecasts, any news from outside markets and will pause at 8 a.m. CDT to see if USDA has an export sale announcement. At 10 a.m., USDA's weekly grain export inspections will be released, followed by the Crop Progress report at 3 p.m. Weather A cold front that is working through the Corn Belt on Monday will spark scattered showers and thunderstorms from Kansas and Nebraska up into the central Great Lakes. Storms could be severe, with the greatest risk for severe weather across northern Illinois Monday afternoon and evening. Showers and thunderstorms may continue to develop in the hot and humid airmass south of the front as well but is not expected to be severe.
| Rural Advocate News | Friday August 26, 2022 |
Fertilizer Institute Hopes for Quick Rail-Labor Union Contract Settlement The Fertilizer Institute is grateful to members of the Presidential Emergency Board who listened to rail carriers and their labor unions amid their contract negotiations. The PEB offered measured recommendations on a pending contract agreement between the two. Both sides have until September 16 to evaluate the PEB’s recommendations during a mandated 30-day cooling-off period. The board’s recommendations include general wage increases and service recognition bonuses worth $1,000. “Uncertainty of this nature is yet another disruption in an already complex environment for farmers, so a speedy resolution is paramount,” says TFI President and CEO Corey Rosenbusch. “Over half of all fertilizer moves by rail every year throughout the United States, and the timeliness and reliability of fertilizer shipments are absolutely critical.” He also says if the farmers can’t get their fertilizer in a timely manner, it results in lower crop yields, higher food prices, and more inflation for America’s consumers. *********************************************************************************** Court Grants Coalition Intervention in Gray Wolf Lawsuit The National Cattlemen’s Beef Association, the American Farm Bureau, and other members of a coalition applauded an appeals court decision allowing intervention in a case regarding gray wolves. The Ninth Circuit Court of Appeals will allow the coalition to intervene in the Defenders of Wildlife versus the U.S. Fish and Wildlife Service and defend the previous administration’s delisting of the gray wolf. “The decision to allow the coalition to intervene in the case demonstrates what we’ve always known: livestock producers deserve to have their voice heard on the delisting of the gray wolf,” says Kaitlynn Glover, executive director of the Public Lands Council. Farm Bureau President Zippy Duvall says when the gray wolf exceeded its recovery goals, it became an Endangered Species Act success story. “With thriving populations, management of species should now be the responsibility of the states, which can best determine appropriate management practices for the gray wolf,” Duvall says. *********************************************************************************** “Protecting Agriculture’s Future” is the theme for Farm Safety and Health Week National Farm Safety and Health Week is September 19-23. Agriculture is known as one of the most dangerous industries in America. The National Institute for Occupational Safety and Health says about 100 agricultural workers suffer a lost worktime injury every day. In 2019, the agriculture industry had a fatality rate of 19 deaths per 100,000 workers. National Farm Safety and Health Week has been held the third week of September since it was established in 1944. The goal is to help bring attention to the risks of working in agriculture. To do that, AgriSafe has daily webinars for agricultural health and safety professionals, healthcare providers, extension agents, farmers, ranchers, and their employees. This year’s theme, “Protecting Agriculture’s Future,” reminds everyone in the industry that the cornerstone of sustainable agriculture is healthy and safe workers. Every day will have a different theme, such as “Tractor Safety and Rural Roadway Safety,” on Monday, September 19. *********************************************************************************** U.S. and Canadian Cattle Inventory Down Two Percent The USDA says all cattle and calves in the U.S. and Canada combined to total 111 million head on July 1, 2022, a two percent drop from the 113 million head on July 1 of last year. All cows and heifers that have calved, at 44.5 million head, were down two percent from last year. All cattle and calves in the U.S. as of July 1, 2022, totaled 98.8 million head, down two percent from July 1 of last year. All cows and heifers that have calved came in at 39.8 million head, a drop of two percent from a year ago. All cattle and calves in Canada totaled 12.3 million head as of July 1, down three percent from the 12.6 million head on July 1, 2021. All cows and heifers that have calved hit 4.69 million head on July 1, a number that’s down one percent from a year ago. *********************************************************************************** Renewable Diesel to Overtake Biodiesel Production The U.S. Energy Information Administration says renewable diesel production will surpass biodiesel production in the country in October. The EIA’s team lead for petroleum and natural gas modeling says they’re seeing continued growth on the renewable diesel side and stagnation to slight shrinking on the biodiesel side. Western Producer says renewable diesel capacity was estimated at 1.92 billion gallons per year in May, up from 1.75 billion gallons in January. Biodiesel capacity was estimated at 2.22 billion gallons, down from 2.26 billion. Many of the traditional oil refineries in the U.S. are being converted to renewable diesel plants. The EIA estimates that 440,000 barrels per day were converted to renewable diesel in 2020. Expectations are that another 660,000 barrels a day will be converted to renewable diesel in 2022. The agency says it’s already prepared an article for when renewable diesel surpasses biodiesel production, which it expects to publish in October. *********************************************************************************** NPPC Hires New Director of Food Policy Dr. Ashley Johnson has joined the National Pork Producers Council as director of food policy. In her new role, she’ll focus on developing and implementing post-harvest food safety and human nutrition programs and addressing animal care issues in market channels. “Her wealth of knowledge is a tremendous asset as we help set the direction of the country’s food policies and weigh in on issues that could affect producers’ ability to produce safe, nutritious pork for consumers around the world,” says NPPC CEO Bryan Humphreys. Johnson comes to NPPC from Zoetis (zo-EH-tis), where she was a technical service veterinarian for more than five years. Among her many duties, she worked with the animal health company’s public affairs department to disseminate information to its pork team and customers on legislation and regulatory actions that could affect the pork industry. Johnson earned her Doctor of Veterinary Medicine from the Virginia-Maryland Regional College of Veterinary Medicine.
| Rural Advocate News | Friday August 26, 2022 |
Friday Watch List Markets At 7:30 a.m. CDT, reports on U.S. personal incomes and consumer spending for July will be released, followed by the University of Michigan's index of U.S. consumer sentiment at 9 a.m. Federal Reserve Chairman Jerome Powell will speak in Jackson Hole, Wyoming Friday morning and is expected to support another rate hike when the Fed meets in September. Weather A front stalled across the Gulf Coast will continue to produce scattered showers on Friday while another system moving through Canada will bring some to the eastern Midwest and Northeast. Another trailing behind it will continue to bring some showers to the Northern and Central Plains as well. Overall, showers will be pretty isolated outside of the Northeast and Gulf Coast, offering only limited help for filling corn and soybeans in a few spots.
| Rural Advocate News | Thursday August 25, 2022 |
Vilsack Announces New Program for Underserved, Minority Farmers A new $550 million program from the Department of Agriculture seeks to support projects that help underserved producers. The program supports projects that enable producers access to land, capital, and markets, and train the next diverse generation of agricultural professionals. The investments are made through funding provided in the American Rescue Plan Act, as amended by the Inflation Reduction Act. The provisions fund and direct USDA to take action to help ensure underserved producers have the resources, tools, programs, and technical support they need to succeed. Agriculture Secretary Tom Vilsack says the funding is part of “USDA’s unwavering commitment to advancing equity for all, including people who have been underserved, marginalized, and adversely affected by persistent poverty and inequality.” The program includes Up to $300 million for “Increasing Land, Capital and Market Access” Projects aimed at helping underserved producers. An additional $250 million goes to the “From Learning to Leading: Cultivating the Next Generation of Diverse Food and Agriculture Professionals” program. *********************************************************************************** USDA Invests $121 Million in Infrastructure to Combat Climate Change The Department of Agriculture Wednesday announced $121 million in funding for critical infrastructure to combat climate change in rural America. The investments include $111 million for 289 projects to help people living in socially vulnerable communities. USDA Deputy Secretary Dr. Jewel Bronaugh says the investments will “strengthen our energy security, create good-paying jobs and save Americans money on their energy costs.” The funding will help people in 49 states, Guam and Puerto Rico. It reflects the many ways USDA Rural Development helps rural residents, businesses and communities address economic development, infrastructure and social service needs, according to USDA. Bronaugh highlighted a total of 415 investments that USDA is making through three programs designed to help people and businesses in rural areas. The programs are Community Facilities Disaster Grants, Rural Energy for America Program Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loans and Grants, and Rural Energy for America Program Energy Audits and Renewable Energy Development Grants. *********************************************************************************** USDA Extends Infant Formula Waivers, Supports WIC State Agencies The federal government this week extended a series of waivers to provide WIC families with additional infant formula options through the end of the year. The Department of Agriculture extended the waivers to December 31, 2022, or 60 days after the expiration of the state’s COVID-19 major disaster declaration. The waivers were previously set to expire at the end of September. Agriculture Secretary Tom Vilsack says, “We will continue to work all hands on deck to ensure families can access infant formula.” The waivers extended allow WIC state agencies, with the necessary agreements from their infant formula contract manufacturers, to offer participants additional infant formula options, such as alternate sizes, forms and brands. USDA began offering waivers immediately after the February voluntary recall of certain Abbott powder infant formulas, which exacerbated existing supply chain issues caused by the COVID-19 pandemic. Since then, USDA has granted nearly 500 waivers to WIC state agencies. *********************************************************************************** AFIA Releases State of the U.S. Feed Industry Report The American Feed Industry Association released its annual "Our Industry, Our Promise," report Wednesday. The report details the challenges the U.S. feed and pet food industry faced over the past year, and the steps the AFIA took to address member priorities. The report provides an overview of the segment's impact on the U.S. economy, its efforts to promote animal food safety and worker health and safety, and its initiatives to enhance global competitiveness and industry environmental sustainability programs. AFIA President and Chief Executive Officer Constance Cullman says, "turmoil continued throughout 2021 and into 2022, but through it all, our industry stayed strong." The report offers a look at the business climate for U.S. animal food manufacturers, state issues and regulations, management of food safety, and trade. The report also provides an update on AFIA's educational offerings over the past year. Find the report on the AFIA website, afia.org. *********************************************************************************** Rural Homes with Persistent Poverty Have Less Access to Internet Households in rural persistently poor counties were the least likely to have home internet in 2015-19, according to USDA’s Economic Research Service. The data released Wednesday shows more than three in ten households lack internet access at home. In comparison, only two in ten households in rural counties that were not persistently poor had no internet access at home. A similar pattern was observed in urban areas, with two in ten households in persistently poor counties lacking home internet access. Only a little more than one in ten households in urban counties that were not persistently poor had no internet access at home. For households with internet access at home, service was mainly through a subscription, which includes a range of access from dial-up to broadband to cellular data plans. USDA syas the gaps in at-home internet access and subscriptions suggest that households in persistently poor counties—and more specifically, households in rural persistently poor counties—had additional barriers to internet adoption. *********************************************************************************** Cattle Industry Convention Looking for New Talent The National Cattlemen's Beef Association seeks new talent to perform during the 2023 Cattle Industry Convention and NCBA Trade Show in New Orleans next year. Applications for the National Anthem Contest and the Talent Round-Up are now being accepted. The 10th annual NCBA National Anthem Contest will accept entries through October 15, 2022. The contest winner will perform the "Star-Spangled Banner" at the convention's Opening General Session as well as the Friday night NCBA event. The winner will also receive round-trip airfare to New Orleans, a hotel room for three nights and free convention registration. Solo singers, bands and others with unique talents are also encouraged to enter the Talent Round-Up by November 11, 2022. Selected acts will receive complimentary registration, be invited to perform on the Beef's Got Talent stage during convention, and be recognized through social media. For more information and to enter, visit convention.ncba.org.
| Rural Advocate News | Thursday August 25, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, a revision of second quarter U.S. GDP and an update of the U.S. Drought Monitor. The U.S. Energy Department reports on weekly natural gas storage levels at 9:30 a.m. Traders will continue to keep an eye on the rain forecast for winter wheat areas and monitor world drought conditions as well as any news from Ukraine. Weather Rain showers with mostly light amounts will move across the northern Midwest and portions of the Northern Plains Thursday. Meanwhile, heavy rain and flooding are in store for the Gulf Coast and Deep South along with the northern Rockies. Dry conditions will be in place elsewhere.
| Rural Advocate News | Wednesday August 24, 2022 |
USDA Accepting Applications for Biofuel Infrastructure Grants The Department of Agriculture Tuesday opened the application window for grants to increase the sale and use of biofuels. USDA has $100 million in funding available through the Higher Blends Infrastructure Incentive Program, funded by the Inflation Reduction Act. The program seeks to market higher blends of ethanol and biodiesel by sharing the costs to build and retrofit biofuel-related infrastructure such as pumps, dispensers and storage tanks. Agriculture Secretary Tom Vilsack says, “Expanding the availability of higher-blend fuels is a win for American farmers, the rural economy and hardworking Americans.” The additional funding follows an April investment of $5.6 million to increase the availability of biofuels by 59.5 million gallons per year in California, Delaware, Illinois, Maryland, New Jersey, New York and South Dakota. In June, USDA also announced that it had provided $700 million in relief funding to more than 100 biofuel producers in 25 states who experienced market losses due to the pandemic. *********************************************************************************** U.S., Chile, Convene Environmental Affairs Council, Plans Indo Pacific Meeting Officials from the U.S. and Chile met this week as part of the Environmental Affairs council under the U.S.-Chile Free Trade Agreement. The council is chaired by Assistant United States Trade Representative for Environment and Natural Resources Kelly Milton. The officials reviewed the progress of implementation obligations under the environmental chapter of the free trade agreement. The talks focused on climate, illegal fishing and strengthening ocean conservation. Meanwhile, the U.S. Trade Representative's Office Tuesday also announced an upcoming Indo-Pacific Economic Framework Ministerial meeting. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo will co-host the meeting September 8-9 in Los Angeles, California. Tai and Raimondo held a virtual Ministerial in July, reaffirming their goal to pursue ongoing and intensified engagements with Indo-Pacific partner countries. They held the first virtual Ministerial in May, shortly after the official launch in Japan. Ambassador Tai also held an informal meeting with the partners in June. *********************************************************************************** Organic Initiative Includes Grower Assistance Program USDA’s Organic Transition Initiative announced this week includes a new program from the Risk Management Agency. The Transitional and Organic Grower Assistance, or TOGA Program, reduces a producer’s overall crop insurance premium bills, and helps them continue to use organic agricultural systems. Premium benefits for TOGA include ten percentage points of premium subsidy for all crops in transition, a $5 per acre premium benefit for certified organic grain and feed crops, and ten percentage points of premium subsidy for all Whole-Farm Revenue Protection policies for organic or transitioning to organic crops. Producers can receive both RMA’s TOGA and premium assistance from other premium subsidy programs. The TOGA program is part of the Organic Transition Initiative, which additionally offers farmer-to-farmer mentoring and direct support through conservation financial assistance. Meanwhile, USDA’s Farm Service Agency is currently accepting applications for both the Organic and Transitional Education and Certification Program and Organic Certification Cost Share Program. *********************************************************************************** Fruits, Vegetables, Top Local Foods Purchased by Schools Many U.S. school food authorities purchase local foods such as fruits, vegetables, dairy, and proteins for their district’s cafeterias. In addition to buying locally produced foods, many school districts participate in other farm to school activities, such as product-specific promotions, taste tests of local foods, onsite edible gardens, and field trips to farms. Approximately two-thirds of U.S. school districts participated in farm to school activities during the 2018-19 school year, according to research from USDA. Of the school districts that participated, 78 percent reported purchasing any local foods during the school year. Fruits and vegetables topped the list of local foods purchased in 2018-19, at 85 percent and 82 percent of school districts, respectively. Further, 68 percent of school districts reported buying locally produced milk, and 29 percent reported buying local grains, including baked goods. Approximately a third of school districts reported purchasing other local dairy products, and about a quarter purchased locally produced proteins. *********************************************************************************** July Egg Production Down, Broiler Hatch Up United States egg production totaled nine billion during July, down three percent from last year. The Department of Agriculture says production included 7.69 billion table eggs, and 1.31 billion hatching eggs, of which 1.22 billion were broiler-type, and 90.7 million were egg type. The average number of layers during July totaled 368 million, down four percent from last year. Total layers in the United States totaled 369 million, down four percent from last year. Egg-type chicks hatched during July totaled 50.1 million, down two percent from July 2021, while eggs in incubators totaled 49.9 million, up 11 percent from a year ago. Domestic placements of egg-type pullet chicks for future hatchery supply flocks by leading breeders totaled 166,000 during July 2022, down 17 percent from July 2021. Broiler-type chicks hatched during July 2022 totaled 859 million, up two percent from July 2021. Eggs in incubators totaled 727 million, up two percent from a year ago. *********************************************************************************** Register Now for the Second USDA Innovation Fair Registration is open for the Second USDA Food Loss and Waste Innovation Fair on September 14. The virtual event showcases the latest food loss and waste mitigation technologies, innovations and programs developed by USDA, academic institutions, local governments, and businesses. The Innovation Fair is designed for everyone – from food scientists and industry experts to community gardeners and those curious about food loss and waste efforts. The fair includes presentations by 12 food loss and waste reduction experts and will feature 36 exhibit booths. Attendees are invited to visit the virtual booths, and text or video chat with representatives in real-time. Attendees can also interact with other participants in a virtual networking lounge. Also participating in this year's fair are U.S. Food Loss and Waste 2030 Champions—businesses and organizations that have committed to reducing food loss and waste in their own operations in the United States by 50 percent by the year 2030. Registration is free at www.usda.gov/foodlossandwaste.
| Rural Advocate News | Wednesday August 24, 2022 |
Wednesday Watch List Markets A report on U.S. durable goods orders will be out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m., including an update of ethanol production. Traders remain interested in the latest weather forecasts, events in Ukraine and growing evidence of global drought. Weather Wednesday features continued dry and warm across most central crop areas. Rainfall will focus on the Northern Plains and northern Midwest with light to moderate amounts, the Delta with locally heavy totals, and in the northern Rockies and Desert Southwest with potential flash flooding.
| Rural Advocate News | Tuesday August 23, 2022 |
USDA to Invest up to $300 million in New Organic Transition Initiative The Department of Agriculture Monday announced the details of a $300 million investment for a new Organic Transition Initiative. Funded in part by the American Rescue Plan, the initiative will help build new and better markets and income streams for farmers, according to USDA. Agriculture Secretary Tom Vilsack says, “we are expanding USDA’s support of organic farmers to help them with every step of their transition.” The number of non-certified organic farms actively transitioning to organic production dropped by nearly 71 percent since 2008. Through the comprehensive support provided by this initiative, USDA hopes to reverse the trend, opening opportunities for new and beginning farmers and expanding direct consumer access to organic foods through increased production. The initiative will deliver wrap-around technical assistance, including farmer-to-farmer mentoring, provide direct support through conservation financial assistance and additional crop insurance assistance, and support market development projects in targeted markets. *********************************************************************************** Farmland Prices, Equipment Sales, Decline in Monthly Index Farmland prices and farm equipment sales declined in the August Creighton University Rural Mainstreet Index. The overall index fell for the fifth straight month, for August slumped to 44.0 from 46.0 in July. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. The region’s farmland price index for August declined to 60.0 from July’s 66.0, marking the 23rd straight month that the index has moved above growth neutral. August’s solid reading was the lowest index since February 2021. The August farm equipment-sales index sank to 45.9 from 56.5 in July. After 20 straight months of advancing above growth neutral, the index unexpectedly dropped below the threshold to its lowest level since November 2020. Index organizer Ernie Goss says, “Farmers and bankers are bracing for escalating interest rates and falling farm commodity prices.” However, bankers expect to record a 1.7 percent decline in farm loan delinquencies over the next 12 months. *********************************************************************************** Busy Week for USTR Officials Officials from the U.S. Trade Representative's Office have a busy schedule this week. Assistant United States Trade Representative for Central and South Asian Affairs, Christopher Wilson, and Assistant United States Trade Representative for Agricultural Affairs, Julie Callahan, started the week in New Delhi. The officials held consultations under the framework of the U.S.-India Trade Policy Forum. Those talks continue through Wednesday, then Wilson will travel to Bangladesh for discussions on a range of bilateral trade issues on Thursday. Meanwhile, today, (Tuesday), Ambassador Jayme White meets with officials from Mexico to follow up on the July U.S.-Mexico-Canada Free Trade Commission meeting. Assistant United States Trade Representative for Environment and Natural Resources Kelly Milton will take part in the public session of the United States-Chile EAC-ECC meeting. The travels this week follow last week’s announcement that the U.S. and Taiwan reached a consensus on the negotiating mandate for the U.S.-Taiwan Initiative on 21st-Century Trade announced, with negotiations planned for this fall. *********************************************************************************** Pro Farmer Crop Tour Underway Pro Farmer scouts are measuring the corn and soybean crop yield potential during this week’s Pro Farmer Crop Tour. Farmer-scouts and industry experts will cover corn and soybean fields across Illinois, Indiana, Iowa, Minnesota, Nebraska, Ohio and South Dakota during Crop Tour. Pro Farmer Editor Brian Grete says, “We know there are some trouble spots out there, areas that were dry in June and remained that way through pollination, but also many good areas where yields will be impressive.” Pro Farmer Crop Tour is the most thorough and most followed inspection of yield potential during a critical time in the growing season. Crop industry stakeholders watch results closely for insights around projected grain supplies and the effects on commodity markets. Daily results are presented during nightly meetings. Registration is required to attend the meetings or access live-streaming results. You can register at profarmer.com. Pro Farmer will release the final results of the tour Friday afternoon. *********************************************************************************** Adult Obesity Increased During First Year of COVID-19 Pandemic New data from USDA's Economic Research Service shows that U.S. adults ages 20 and older reported a three percent higher prevalence of obesity during the first year of the COVID-19 pandemic. The study analyzed data from the Centers for Disease Control and Prevention's Behavioral Risk Factor Surveillance System from March 13, 2020, to March 18, 2021, compared to a pre-pandemic baseline period of January 1, 2019, to March 12, 2020. Four behaviors that can influence the risk of obesity—exercise, hours of sleep, alcohol use, and cigarette smoking—were also examined to help explain the change in the adult obesity rate during the pandemic. Participation in exercise rose 4.4 percent over the period, and people slept 1.5 percent longer, both associated with reducing obesity. Meanwhile, the number of days in the period of a month in which alcohol was consumed was 2.7 percent higher, and cigarette smoking dropped by four percent. *********************************************************************************** Fuel Price Decline Enters 10th Straight Week The decline in fuel prices has extended to the 10th straight week. Gasoline prices fell 5.1 cents in the last week to $3.86 a gallon, while diesel prices fell 6.3 cents to $4.97 a gallon. The national average gas price is down 51.3 cents from a month ago but 72.2 cents higher than a year ago. GasBuddy’s Patrick D Haan says diesel prices are below $5 a gallon for the first time since March, “likely helping to cool off aggressive inflation numbers.” However, De Hann adds, “The pace of declines is certainly slowing down as oil prices have bounced up slightly.” Thus far, Mother Nature has spared markets from disruptions from hurricanes, but that remains a wildcard as we head into the peak of hurricane season. Oil markets rallied last week as global oil supply continues to tighten, but balancing concerns of an economic slowdown in many major developed countries.
| Rural Advocate News | Tuesday August 23, 2022 |
Tuesday Market Watch Markets A report on U.S. new home sales for July is due out at 9 a.m. CDT Tuesday, the only official report on the docket. Traders will continue to watch the latest weather forecasts, any news from Ukraine and for more specifics from the drought in China. Weather Warm and dry conditions will cover most primary crop areas Tuesday. This combination keeps pushing corn and soybeans in the latter stages of production. Rainfall will focus on the Delta with heavy amounts and a flood threat.
| Rural Advocate News | Monday August 22, 2022 |
USDA Announces Another Phase of Disaster Assistance The USDA announced another phase of assistance will be forthcoming to commodity and specialty crop producers impacted by natural disasters in 2020 and 2021. Over 18,000 producers will soon be mailed new or updated pre-filled disaster applications to offset eligible crop losses. About $6.4 billion has already reached 165,000 producers through the Farm Service Agency’s Emergency Relief Program. “We knew when we announced ERP in May that we would have additional applications to send near the end of the summer as we received new information and found producers left out of the first data set we used,” says USDA Undersecretary for Farm Production and Conservation Robert Bonnie. FSA will mail those pre-filled applications in late August to producers who have potentially eligible losses. Bonnie says he's proud of his team’s continued efforts to help over 18,000 producers who need the assistance. Contact your local FSA office for additional information on eligibility requirements. *********************************************************************************** Drought Conditions Improve Slightly in the Western Corn Belt The U.S. Drought Monitor says the amount of land facing drought eased a little in the western Corn Belt but was largely unchanged in the Midwest. In a six-state region, including Wyoming, Colorado, Kansas, Nebraska, North Dakota, and South Dakota, approximately 51 percent of the land suffered under drought conditions. That’s down from 53 percent during the previous week and 72 percent only three months ago. In the eastern part of the Midwest, including Minnesota, Iowa, Missouri, Illinois, Wisconsin, Michigan, Indiana, Ohio, and Kentucky, about 14.5 percent of the area was in drought. That’s down slightly from 15 percent the prior week but up from less than one percent three months ago. Iowa, the nation’s biggest corn producer, has 39 percent of its land in a drought, up 6.9 percent from May. Illinois, the second-largest producer of corn and soybeans, only has five percent of its area in a drought. *********************************************************************************** Ethanol Industry May Get Help From Climate Law President Biden’s new climate law offers a major expansion in tax credits for companies that capture and store carbon emissions. Reuters says that could give the ethanol industry a significant boost toward achieving its climate goals. The ethanol industry intends to use carbon capture and storage technology to reach its goal of net-zero emissions by 2050. A group of projects that could benefit from the expanded credits is a series of pipeline proposals in the Midwest that could capture and transport ethanol plant emissions. Three companies intend to put up over 3,600 miles of pipelines from ethanol plants in six states to underground carbon storage sites. The three companies say the projects have the potential of capturing up to 39 million tons of carbon every year. That could potentially mean more than $3.3 billion in tax credits for the businesses. The pipelines are currently in the permitting stages in each state. *********************************************************************************** There is Still Time to Apply for ASA Conservation Legacy Awards There is still time for farmers to share how conservation is a part of their operation and maybe win a Conservation Legacy Award. The award recognizes farm management practices of U.S. soybean farmers that are both environmentally friendly and profitable. Reduced tillage, cover crops, and improving water quality are just a few of the conservation practices that are eligible for the reward. Different regions of the country have their unique challenges and ways to approach conservation and sustainability. All U.S. soybean farmers are eligible for a Conservation Legacy Award. Entries are judged on soil management, water management, input management, conservation, environmental management, and sustainability. The selection process for the awards is divided into four regions, which are the Midwest, Upper Midwest, Northeast, and South. One farmer from each region will get recognized at the 2023 Commodity Classic in Orlando, Florida, and one will be the overall winner. The registration deadline is September 1. *********************************************************************************** Improving Photosynthesis Means a 20 Percent Boost in Soybean Yields For the first time, researchers have proven that multigene bioengineering of photosynthesis increases major food crop yields in field trials. A collaborative team led by the University of Illinois has worked on this project for more than ten years. Project researchers have transgenically altered soybean plants to increase the efficiency of photosynthesis, resulting in greater yields without a loss of quality. These results come at an important time. A recent United Nations report shows that nearly 10 percent of the world’s population was hungry in 2021. By 2030, UNICEF says more than 660 million people will likely face food scarcity and malnutrition. Photosynthesis is the natural process all plants use to convert sunlight into energy and yield. Project researchers say the 100-plus step photosynthesis process is surprisingly inefficient, so they’ve been working to improve it. The lead scientist says data shows the food supply level needs to grow significantly to meet the demand. *********************************************************************************** USDA Livestock, Dairy, and Poultry Outlook for August U.S. export numbers of eggs, turkey, and pork in the first half of 2022 were all down compared to the first half of last year, but exports of broiler meat and beef were higher. Egg and turkey exports, down 38 and 20 percent, respectively, were hurt by the outbreak of Highly Pathogenic Avian Influenza. Egg exports to Canada were flat, but there were significant decreases in major markets like Mexico, Japan, and Hong Kong. Exports of turkey to Mexico, one of the top destinations, were down 18 percent year over year. Pork exports were down 18 percent year over year due to weaker demand in the Asian markets. Broiler exports were up three percent, with exports to Taiwan increasing over 64 percent from last year. That helped to offset decreases in major markets like Mexico and Cuba. U.S. animal products may continue facing headwinds like a strong U.S. dollar making American exports more expensive.
| Rural Advocate News | Monday August 22, 2022 |
Monday Watch List Markets Back from the weekend, traders are keeping close track of the latest weather forecasts, events from Ukraine and growing evidence of global drought. USDA's weekly report of grain inspections is due out at 10:00 a.m. CDT Monday, followed by Crop Progress at 3 p.m. Weather Dry and seasonally warm conditions will cover most primary crop areas Monday. This combination is favorable for filling crops. Some beneficial rain moved across the Midwest during the past week. Meanwhile, portions of the Southern Plains and Delta will have moderate to heavy rain, notably in northern and northeastern Texas.
| Rural Advocate News | Friday August 19, 2022 |
U.S. and Taiwan Start Negotiations on Formal 21st Century Trade Initiative The United States and Taiwan reached an agreement on the negotiating mandate for the U.S.-Taiwan Initiative on 21st Century trade that was announced on June 1. The negotiating mandate sets out the broad objectives shared by both countries for the upcoming negotiations. The first round of talks will likely take place in the early fall. “Today, we begin negotiations with Taiwan that will deepen our trade and investment relationship, advance mutual trade priorities based on shared values, and promote innovation and inclusive economic growth for our workers and businesses,” says Deputy U.S. Trade Representative Sarah Bianchi. The U.S. and Taiwan have set a robust agenda for negotiations on trade facilitation, good regulatory practices, strong anti-corruption standards, and enhancing trade between small and medium enterprises in both countries. “We plan to pursue an ambitious schedule for achieving high-standard commitments and meaningful outcomes to help build a prosperous 21st-century economy,” Bianchi adds. *********************************************************************************** Western Farmers to be Impacted by Emergency Water Usage Cuts Seven western states that rely on Colorado River water were told by government officials to develop a plan to dramatically reduce water usage by as much as four million acre-feet. The L.A. Times says those negotiations didn’t result in an agreement, so the U.S. Bureau of Reclamation announced new emergency water cuts for states like Arizona and Nevada and in Mexico as the nation’s two biggest reservoirs are at historically low levels. “In order to avoid a catastrophic collapse of the Colorado River System and a future of uncertainty and conflict, water use in the basin must get reduced,” says Tanya Trujillo (True-HEE-yoh), assistant secretary for water and science with the Interior Department. Under the Tier 2 Shortage Declaration, Arizona’s yearly water allotment is reduced by 21 percent, Nevada’s by eight percent, and Mexico’s by seven percent. “Every sector state has a responsibility to ensure water gets used with maximum efficiency,” Trujillo adds. *********************************************************************************** Dairy Groups Tout Nutrition as Schools Reopen Almost 50 million children are returning to public schools, and a group of dairy and nutrition advocates encourages parents and policymakers to remember dairy. The dairy advocates say when it comes to the health of students, milk and dairy product options need to be more accessible during the school year. The group released a fact sheet pointing out that milk is the top source of calcium, potassium, phosphorous, and vitamin D in kids ages 2-18. Unfortunately, the USDA and the Department of Health and Human Services say children over four and adolescents aren’t getting enough dairy to meet the recommendations in the federal Dietary Guidelines, missing out on several nutrients they need to grow. Michael Dykes of the International Dairy Foods Association says, “School meals are an important opportunity for children to get the nutrients they need. Now is when we need to work together to encourage nutritious milk consumption every day.” *********************************************************************************** Taco Bell Ventures Into Plant-Based Meat Market Taco Bell is getting into the plant-based meat market. The company says it’s testing a proprietary product in the market around Birmingham, Alabama. The Wall Street Journal says the company has been working on the soy and pea-based product for three years. It’s debuting in a Crispy Melt Taco that’s made with a white corn shell tortilla. Taco Bell’s Chief Innovation Officer Liz Matthews says the product will cost $2.49 and that price affordability was critical to an accurate market test. The cost has been a challenge in testing other plant-based products as they typically cost 40 percent more than animal-based products. “It was important not to have an upcharge,” Matthews says. “We wanted to ensure that this product is as affordable and accessible as our seasoned beef.” The company wanted to get the taste and consistency right so that customers couldn’t tell the difference between the plant-based and animal-based offerings. *********************************************************************************** Lamb Board Studying the Industry’s Environmental Footprint The American Lamb Board’s benchmark research on the environmental footprint of America’s lamb industry is within months of wrapping up. The research is funded by the mandatory American Lamb Checkoff and focuses on collecting data from representative U.S. sheep farms, ranches, and feedlots related to greenhouse gas emissions. The study will cover four types of operations, including intensive production, intensive grazing, extensive grazing, and range. From the data, Michigan State University researchers will compare the amount of greenhouse gasses required to produce one kilogram of lamb from each production type. “We must have solid, actual data on American lamb production’s environmental footprint,” says ALB Chair Peter Camino (Kah-MEE-no). “We need to have science to accurately tell our U.S. lamb story instead of assumptive data that doesn’t paint a realistic picture of the industry.” ALB also says it’s time to establish some benchmark data to work on weaknesses and build on industry strengths. *********************************************************************************** Iowa Steer Show Raises Over $400,000 for Ronald McDonald House A list of Iowa VIPs helped raise a record-breaking amount of money for those in need. The Iowa Governor’s Charity Steer Show is an Iowa tradition that pairs famous people together with steer exhibitors to benefit charity. The Des Moines Register says this year’s event raised over $440,000 for the Ronald McDonald House Charities of Iowa, surpassing last year’s total of $375,000. “It’s hard to comprehend what kind of impact that much money can have for Iowa families,” say co-chairs Tanner Lawton and Casey Anderson. “The compassion shown by all of our participants is what makes this such a special event.” This was the 40th annual event, which has raised more than $5 million since starting in 1983. The Ronald McDonald House organization supports families with children experiencing a critical illness. The Iowa Beef Industry Council, Iowa Cattlemen’s Association, and the office of Governor Kim Reynolds co-hosted the event this year.
| Rural Advocate News | Friday August 19, 2022 |
Friday Watch List Markets Events at the Europe's largest nuclear plant in Zaporizhzhia, Ukraine, are getting increased attention as Russia's attack has put the plant at risk of leaking radiation or possibly, experiencing a meltdown. Otherwise, traders will pay attention to weather and the only significant report of the day, USDA's Cattle on Feed report for Aug. 1, due out at 2 p.m. CDT. Weather Showers and thunderstorms are in store for the northern Midwest Friday. The rain will expand into more of the Midwest during the weekend with favorable late-season crop moisture. We'll also see periods of rainfall in the southeastern and southwestern U.S. with expansion across the far Southern Plains indicated over the next few days. The Far West and Northwest heat wave continues but with less intensity than earlier this week.
| Rural Advocate News | Thursday August 18, 2022 |
Biofuel Groups Welcome President’s Signature on IRA Biofuel groups welcome signage of the Inflation Adjustment Act this week. The sweeping legislation includes key priorities for the biofuels industry. The legislation signed by the president earlier this week includes an extension for tax credits for carbon oxide sequestration and utilization, the Clean Fuel Production Credit starting in 2025 and expiring at the end of 2027 to produce low-carbon fuels, and five tears of sustainable aviation fuel credits. Additionally, the legislation includes $500 million for biofuels infrastructure through the end of 2031, an extension of the Biomass-Based Diesel Blenders Credit, and a $300 million grant program to increase domestic production and deployment of sustainable aviation fuel. Renewable Fuels Association President and CEO Geoff Cooper says, "This bill puts ethanol on a sustainable path for growth and investment.” Growth Energy CEO Emily Skor adds, “Biofuels are critical to meeting climate goals, and this law will help maximize our industry's contributions to a cleaner future. “ *********************************************************************************** RIPE Responds to IRA, Urges Change in Payment Model to Producers Rural Investment to Protect our Environment, or RIPE, applauds the inclusion of $20 billion for climate-smart agricultural practices in the Inflation Reduction Act. However, RIPE urges lawmakers to shift funds away from the cost-share model in favor of payments that provide producers with a reasonable return for conservation. RIPE Executive Director Aliza Drewes says, “We believe that new funds intended for climate-smart agriculture should set payment levels to cover the full cost of practice implementation.” While the IRA offers significant funding, the group claims most producers will not seek to use them because the payment terms are limited to cost-share requirements. RIPE is a producer-led nonprofit advancing a unique climate policy plan for farmers, ranchers and the public, and advocates for the implementation of the RIPE100 policy. The policy would allow farmers and ranchers to earn payments that reflect the benefits they deliver with a price floor above implementation cost, economic risks and future climate policy costs. *********************************************************************************** USAID Purchasing Ukrainian Wheat for UN Food Program The U.S. Agency for International Development, known as USAID, is providing more than $68 million in additional funding to the UN World Food Program. The funding supports the purchase, movement and storage of up to 150,000 metric tons of Ukrainian wheat to help respond to the world’s worst food crises. Before Russia's invasion, Ukraine was one of the World Food Program's top grain suppliers and the fourth largest commercial wheat exporter. Opening the Ukrainian market is a vital step forward in the emergency response, according to USAID, which says the world is facing its most severe food crisis in decades. USAID supported the first humanitarian grain shipment to leave the Black Sea this week. The shipment will support the humanitarian response in the Horn of Africa. The United States has provided nearly $7.6 billion in assistance to respond to the global food security crisis since the beginning of Russia’s war against Ukraine. *********************************************************************************** Farmers Receive 15-18% of Retail Price for Fresh Potatoes USDA’s Economic Research Service reports the farm share of the retail price of potatoes fluctuated between 15 percent and 18 percent in recent years. The farm share of the retail price is the ratio of what farmers receive to what consumers pay per pound in grocery stores. The national monthly average price of fresh potatoes was $0.78 per pound at grocery stores in 2021, and the monthly average price received by farmers was $0.12 per pound. As part of the farm share calculation, the USDA Economic Research Service assumes that farmers supply a little more than 1.04 pounds of fresh potatoes for each pound sold at retail to account for the roughly four percent of fresh potatoes that is lost through spoilage or damage. Therefore, at an average farm price of $0.12 per pound, the farm receipt was 12.5 cents for each pound of potatoes sold in 2021, about 16 percent of the retail price. *********************************************************************************** Former House Ag Lawmaker Faces Fraud Charges A former member of the House Agriculture Committee faces fraud charges. The Department of Justice this week released a 28-count indictment against TJ Cox, a Democrat who represented California’s 21st District between 2019-2021. According to the indictment, Cox perpetrated multiple fraud schemes targeting companies he was affiliated with and their clients and vendors. Cox created unauthorized off-the-books bank accounts and diverted client and company money into those accounts through false representations. From 2013 to 2018, Cox obtained over $1.7 million in diverted client payments and company loans and investments across two different fraud schemes. According to allegations in the indictment, when Cox was a candidate for the U.S. House of Representatives in the 2018 election, he perpetrated a scheme to fund and reimburse family members and associates for donations to his campaign. During his time on the Agriculture Committee, Cox sat on the Livestock and Foreign Agriculture Subcommittee, along with the Biotechnology, Horticulture and Research Subcommittee. *********************************************************************************** Scholarships to Help Producers Attend Cattle Industry Convention The 2023 Cattle Industry Convention and NCBA Trade Show is headed to New Orleans next year, and funding is available to offset some costs for producers. The National Cattlemen’s Beef Association offers a variety of scholarships and grants to help producers attend CattleCon23, February 1-3, 2023, in New Orleans. NCBA President Don Schiefelbein says, “These scholarships are perfect for youth, first-timers and others looking to expand their network at the largest event in the beef cattle business.” Scholarship recipients receive a complimentary Education Package registration and discounted housing accommodations for three nights. Scholarships will be awarded to up to five beef cattle industry members, up to three young beef producers, and up to three students in the industry. Applications for all scholarship categories are due by September 23, 2022, and will be evaluated based on eligibility and answers to application questions. For more information about the scholarship program, visit convention.ncba.org.
| Rural Advocate News | Thursday August 18, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. A 9 a.m., a report on U.S. existing home sales in July and the Conference Board's index of U.S. leading indicators will be released, followed by the Energy Department's weekly natural gas storage at 9:30 a.m. Not surprising, the latest weather forecasts remain an important trader topic. Weather Dry conditions with seasonally warm temperatures are in store across the central U.S. Thursday. Showers and thunderstorms will cross the northern tier, and a broad swath of light to moderate rain is in store for the southern tier. Meanwhile, the Far West and Northwest will have another day of excessive stressful heat. The Southwest is in line for flooding monsoon rain during the balance of this week.
| Rural Advocate News | Wednesday August 17, 2022 |
Biden Signs Inflation Adjustment Act President Joe Biden Tuesday signed the Inflation Adjustment Act, a bill that includes billions for USDA conservation programs. Brooke S. Appleton, National Corn Growers Association vice president of public policy, says, “Through this legislation, Congress and the administration recognize that farmers’ voluntary climate-smart agricultural practices are an important part of addressing climate change.” The law allocates $19.9 billion in funding for USDA's conservation programs and $1 billion for additional conservation technical assistance. To advance biofuels, the legislation includes $500 million for infrastructure for greater market deployment of higher blends of biofuels, and new tax credits based on carbon reduction to incentivize clean fuels such as biofuels like ethanol and new sustainable aviation fuel. Senate Agriculture Committee Chair Debbie Stabenow, a Michigan Democrat, welcomed the president's signature on the bill. Stabenow says, "we are equipping farmers, foresters, and rural communities with the tools they need to be a part of the climate solution, while boosting their economic success at the same time." *********************************************************************************** Ukraine Ag Exports Down Roughly 50% Ag exports from Ukraine are down 46 percent this year, compared to 2021, according to Ukraine’s agriculture ministry. So far, Ukraine has exported 2.65 million metric tons of grain during the 2022-23 growing season. Grain exports for the 2021-22 season ending June 30 rose 8.5 percent to 48.5 million metric tons, driven by strong shipments before Russia invaded Ukraine, according to Reuters. Since, exports have stalled because the Black Sea ports were closed off, driving fears of higher food prices and even shortages. However, those ports we unblocked last month, and Ukraine began exporting products. Ukraine's Ministry of Agrarian Policy reports the country exported 2.66 million metric tons of grains and oilseeds in July 2022, 22.7 percent more than June. Exports of wheat increased more than three times in July to about 412,000 tons compared to 138,400 tons shipped for export in June. Ukraine could harvest up to 50 million metric tons of grain this year, compared to 86 million in 2021. *********************************************************************************** USDA Releases Latest Wheat Outlook Report The August Wheat Outlook Report from the Department of Agriculture shows Russia, Canada and the United States are all expected to recover from their production issues last year. The report shows Global 2022-23 wheat production is pegged at a record 779.6 million metric tons. Production for Russia is expected at a record 88.0 million metric tons. The Canadian Prairies have received ample rains to recover from the devasting drought in 2021-22. The U.S. Northern Plains and Pacific Northwest have recovered from a major drought last year, but year-to-year growth in production is constrained by drought in the Southern Plains. U.S. wheat production is forecast at 1.783 billion bushels, up two million bushels from the July forecast. On the other hand, Argentina and Australia are projected down from their record production in 2021-22. A major heat wave has limited the European Union's yield potential. And the ongoing conflict in Ukraine creates a challenge for producers to harvest, and growing conditions have been below average, which has limited yield potential. *********************************************************************************** Soy-Based Asphalt Installed at Farm Progress Show Site Soybean farmers attending the 2022 Farm Progress Show will have the opportunity to experience the value of their soy checkoff investments in research and development firsthand. An installation of more than 42,000 square feet of soy-based asphalt, sponsored by the Iowa Soybean Association, has been completed at the Central Iowa Expo Grounds near Boone, Iowa, just in time for the event. As high oleic soybean acres continue to increase, more end users are realizing the value of this soybean variety and the corresponding added value it brings to a range of products, including asphalt. April Hemmes, United Soybean Board member from Iowa, says, “Our goal in funding this project is to highlight the diversity of high oleic soybean oil and its potential for use in pavement, coverings and coatings.” The binding agent, developed with high oleic soybean oil, increases asphalt durability and offers a more environmentally sustainable alternative to traditional binding agents. *********************************************************************************** USCA Announces Independent Beef Producer and Processor's Online Directory The U.S. Cattlemen's Association Tuesday announced the Independent Beef Producer and Processor's online directory. The network is intended to be a resource for those seeking new connections within the industry. The directory is for producers looking for regional processors, processors seeking local producers and consumers interested in sourcing local beef. USCA Independent Processors Committee Chairman Patrick Robinette says, “This directory has been a priority for the USCA processing committee as consumers continue to seek out local beef options and producers continue to explore efficient and affordable ways to get it to them.” To register as a producer or processor, head to uscattlemen.org to find more information and the application link. You must be a U.S. Cattlemen's Association member to post to the directory. In January, the Biden administration unveiled its Action Plan for a Fairer, More Competitive, and More Resilient Meat and Poultry Supply Chain. USCA supports the Action Plan, which included a $1 billion investment in independent processing capacity. *********************************************************************************** Membership in National FFA Organization Reaches All-Time High The National FFA Organization Tuesday announced a record-high student membership number of 850,823, an increase of 15 percent from last year. In addition, chapter numbers increased by 178, resulting in 8,995 chapters in the United States, Puerto Rico and the U.S. Virgin Islands. Interest in FFA and agricultural education continues to grow as membership and the number of chapters increase. The top five student membership states are Texas, California, Georgia, North Carolina and Tennessee. This year, the organization has more than 132,700 Latino members, more than 47,000 Black members and more than 13,000 American Indian and Alaska Native members. Further, 43 percent of the membership is female, and 50 percent is male, with .5 percent reporting as nonbinary, 4.7 percent undisclosed, and 1.2 percent unreported. National FFA CEO Scott Stump adds, “As we continue to grow, we see the enthusiasm for agricultural education and FFA reflected in our membership.”
| Rural Advocate News | Wednesday August 17, 2022 |
Wednesday Watch List Markets A report on U.S. retail sales in July is due out at 7:30 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly inventory report at 9:30 a.m. Monday's report from USDA showed a slightly lower value for corn products so last week's ethanol production is expected to come in steady to lower than the previous week. At 1 p.m., the Fed will release minutes from the latest Open Market Committee meeting. Weather and Ukraine remain high on the list of traders' attention. Weather Dry and mild conditions will cover most primary crop areas Wednesday, favorable for filling row crops along with wheat harvest. Rain will focus on the Southern Plains and Delta in the form of light to locally moderate showers and thunderstorms. Meanwhile, stressful hot and dry conditions are in store for the Far West and Northwest.
| Rural Advocate News | Tuesday August 16, 2022 |
Tai, Vilsack, to Visit Iowa This Week U.S. Trade Representative Katherine Tai and Agriculture Secretary Tom Vilsack head to Iowa this week. The duo from the Biden administration will join Representative Cindy Axne, an Iowa Democrat, for a series of events focused on trade. Specifically, they will promote the administration's work to expand market access for U.S. farmers and help them bring their goods to customers worldwide. Ambassador Tai and Secretary Vilsack will also promote the recently passed Inflation Reduction Act, along with the CHIPS and Science Act, which they say will lower costs for Iowa families, reduce inflation, and help the United States maintain its global competitive edge. Because of the Inflation Reduction Act, the CHIPS and Science Act, and the Bipartisan Infrastructure Law, Tai says, “the United States is in a stronger position to maintain our global competitive edge for years to come." Meanwhile, Vilsack will also travel to Colorado this week for similar events promoting the Inflation Adjustment Act. *********************************************************************************** Republicans Concerned Over Inflation Adjustment Act House Democrats passed the Inflation Adjustment Act last week following action in the Senate. President Joe Biden is expected to sign the legislation this week. However, the partisan bill has Republicans concerned about the upcoming farm bill. Glen GT Thompson of Pennsylvania is the ranking Republican on the House Agriculture Committee. Following passage of the Inflation Adjustment Act in the House, Thompson stated, "My Democrat colleagues are either politically deaf or blinded by ideology as they ignore 40-year high inflation, exorbitant food and fertilizer prices, severe labor shortages, and relentless overregulation from the Biden Administration." Thompson contends the legislation "only complicates the pathway to a Farm Bill and creates even greater uncertainty for farmers." However, House Agriculture Committee Chair David Scott, A Georgia Democrat, says, "My colleagues may complain about the steps we had to take to ensure this additional funding,” but adds that Republicans have taken similar actions with the Farm Bill. *********************************************************************************** USDA Touts Inflation Reduction Act Funding for Conservation The Department of Agriculture Monday promoted the funding included in the Inflation Reduction Act for USDA conservation programs. The legislation will deliver $19.5 billion in new conservation funding to support climate-smart agriculture. Agriculture Secretary Tom Vilsack says, "President Biden and Congress have taken an important, historic step towards easing the burden of inflation on the American public and meeting the moment on climate." The funding will bolster the new steps that USDA's Natural Resources Conservation Service announced Monday to improve opportunities for nutrient management. NRCS will target funding, increase program flexibilities, and launch a new outreach campaign to promote nutrient management's economic benefits and expand partnerships to develop nutrient management plans. This is part of USDA's broader effort to address future fertilizer availability and cost challenges for U.S. producers. Through USDA’s conservation programs, farmers will have streamlined opportunities to improve their nutrient management planning, which provides conservation benefits while mitigating the impacts of supply chain disruptions and increased input costs. *********************************************************************************** USDA: Beef Producers Face Higher Inputs U.S. beef producers face higher input costs this year, predicted up seven percent compared to 2021. USDA’s Economic Research Service reported Monday the farmer’s share of the retail value of beef also increased year over year, but rising input costs, especially for cattle feed, may limit farmers’ ability to benefit from higher cattle prices. Feed expenses are the largest operating cost for cow-calf producers, comprising 75 percent of these costs in 2021. Prices for beef cattle feed were up 16 percent in May 2022 relative to May 2021. High fertilizer prices have contributed to increased feed costs, while drought conditions have squeezed feed grain and hay supplies. The 2021/22 season-average farm price for corn—the primary grain fed to cattle—is currently projected at $5.95 per bushel, the highest since the 2012/13 marketing year. Other feed grains, including sorghum, oats, and barley, are projected to increase in 2021/22 relative to 2020/21. *********************************************************************************** NACD Announces $15 Million in 2022 Technical Assistance Grants The National Association of Conservation Districts Monday announced $15 million in technical assistance grants. The grants continue funding to nearly 500 conservation districts in 49 states and territories. Funded by USDA's Natural Resources Conservation Service, the grant program is in its fifth year. The program allows NACD to accelerate on-the-ground conservation by increasing the capacity available to conduct outreach and deliver technical assistance. Grant funding supports over 490 positions, including technicians, conservation planners, program support specialists and technical specialists. All these employees will provide conservation technical assistance to help customers carry out their conservation plans. Over the life of the program, grantees have delivered services in 50 states and three territories. Conservation districts have awarded more than 30,000 Farm Bill conservation contracts and assisted with over 55,000 additional EQIP contracts. Their work has benefitted over 2.5 million acres, improving soil health, forest and woodland conditions, wildlife habitat, and water quality. ********************************************************************************** USDA Recommends Adding Food Safety Items to Your Back-to-School List With August being back-to-school season, the Department of Agriculture reminds parents to include food safety items on their shopping list. Sandra Eskin, USDA Deputy Undersecretary for Food Safety, says, “Because children are particularly at risk for serious foodborne illness, food safety must be at the top of the list when preparing lunches for school and field trips.” When preparing school lunches, or food for children at any time for that matter, USDA provides a few tips to enhance food safety. First, USDA suggests that you clean and sanitize surfaces and utensils to prevent cross-contamination during food prep. Additionally, different colored cutting boards can help keep meat and poultry separate from ready-to-eat foods, such as fruits and vegetables. Using food thermometers can help determine whether cooked foods reach a safe temperature to kill any harmful bacteria. Also, to keep perishable food safe in a lunch box, use cold gel packs combined with a frozen juice box or bottle of water.
| Rural Advocate News | Tuesday August 16, 2022 |
Tuesday Watch List Markets U.S. housing starts for July are set to be released at 7:30 a.m. CDT Tuesday, followed by the Federal Reserve's July report on U.S. industrial production at 9:15 a.m. Traders will continue to examine the latest weather forecasts and news out of Ukraine and China. Weather A front continues its trek southward, bringing much more seasonable temperatures to the country. This is resulting in moderate to locally heavy precipitation in and around Missouri throughout the day. Other isolated showers will be possible west to Colorado, in the Upper Midwest, and across the East, but the rains in the middle of the country are coming to drought areas in desperate need. Heat will unfortunately continue south of the front and across the West.
| Rural Advocate News | Monday August 15, 2022 |
USDA Forecasts Lower Corn Production and Higher Soybean Production Than Last Year The USDA’s National Ag Statistics Service forecasted U.S. corn production down from 2021 and soybean production up from last year. The corn production forecast is 14.4 billion bushels, down five percent from last year. Soybean production is forecast at 4.53 billion bushels, up two percent from 2021. Average corn yield is forecast at 175.4 bushels an acre, down 1.6 bushels from 2021. USDA says soybean yields will average a record-high of 51.9 bushels an acre, a half-bushel higher than last year. Wheat production is predicted at 1.78 billion bushels, eight percent higher than in 2021. Growers will likely produce 1.20 billion bushels of winter wheat, down six percent from last year. Spring wheat forecast is 55 percent higher this year at 512 million bushels. NASS forecasts all cotton production at 12.6 million 480-pound bales, 28 percent lower than last year. Yield will average 846 pounds per harvested acre, up 27 pounds from 2021. *********************************************************************************** WASDE Calls for Lower Corn, Higher Soybean Ending Stocks The World Ag Supply and Demand Estimates Report predicted lower 2022-2023 U.S. corn supplies, reduced feed and residual use, slightly higher food, seed, and industrial use, smaller exports, and lower ending stocks. With supply falling more than usage, stocks dropped 82 million bushels to 1.4 billion. The season-average corn price is unchanged at $6.65 a bushel. U.S. soybean supplies are projected to be 4.8 billion bushels, 36 million higher than last month. Soybean exports are up by 20 million bushels to 2.16 billion on increased supplies. Ending stocks are forecast higher at 245 million bushels, and the season-average soybean price is down slightly to $14.35 a bushel. The wheat outlook shows higher supplies, higher domestic use and exports, and reduced stocks. The projected ending stocks dropped to 610 million bushels. Even though it dropped by $1.25, the season-average farm price is still projected at a record $9.25 a bushel. *********************************************************************************** Solid Farm Economy Shows Signs of Slowing The Kansas City Federal Reserve says financial conditions in its district remained solid in the second quarter, but survey respondents say signs of slowing growth are likely in the months ahead. Farm real estate values grew rapidly in recent quarters, but those valuations moderated in the second quarter alongside recent drops in agricultural commodity prices. Farm income remained stronger than last year, but an increase in farm loan interest rates, drought, higher input costs, and the pullback in commodity prices likely contributed to a slightly less optimistic outlook for the farm economy than the previous quarter. While this year’s outlook is still positive, lenders reported growing concerns about 2023. A larger share of lenders reported significant increases in production expenses for producers compared to 2021. Severe drought has reduced hay and forage for livestock and contributed to higher feed costs. Despite concerns, loan repayment problems dropped to the lowest level in seven years. *********************************************************************************** New England Residents Can Still Have Pork on the Table New England residents who love pork caught a break. A Massachusetts federal court judge signed a court order approving an agreement to delay enforcement of a state law banning the sale of pork that comes from animals not raised under the state’s housing standards. A coalition led by the National Pork Producers Council filed suit seeking to stop the law’s impending implementation. The suit also asks the court to find the law unconstitutional. “This is a significant outcome as NPPC continues to push to preserve the rights of America’s pig farmers to raise hogs in the way that’s best for their animals and maintains a reliable supply of pork,” says Terry Wolters, president of the NPPC. “The impact would have been especially hard on producers in surrounding states who didn’t have a vote in the Massachusetts referendum.” The agreement ends 30 days after the Supreme Court decides on a suit against California’s Prop 12. *********************************************************************************** Gas Prices Drop Below Four Dollars a Gallon The American Automobile Association says the national average price of regular gasoline fell below four dollars a gallon. The national average was $3.99 a gallon last week, a sharp drop from the record high of five dollars a gallon in mid-June. Prices haven’t been below four dollars since March. Oil prices worldwide have dropped amid rising concern about the global economy, which has taken gas prices lower as well. Brent, the global benchmark for oil prices, has fallen under $100 per barrel, down from more than $120 in June. NPR says industry analysts expect prices will continue falling but how long that will continue depends on what happens to oil prices in the future. Global economic concerns, especially as food and energy prices climb, will continue to determine the amount of oil demand. Oil producers in the U.S. and around the world worry about overproducing oil given the world’s economic fears. *********************************************************************************** FBN Releases 2022 Corn and Soybean Yield Report Farmer Business Network released its 2022 U.S. Corn and Soybean Yield Report. According to a recent survey, analysts expect the U.S. corn yield to be 175.9 bushels per acre, and soybeans will average 51.1 bushels per acre. FBN’s latest model-based yield forecast is 170 bushels per acre for U.S. corn and 50.7 for soybeans. Among their key findings for corn, yields in Iowa and Nebraska are expected to be significantly below the strong yields of 2021. Yield expectations decreased in Missouri and the Dakotas while Indiana and Ohio have the strongest yield improvements. Soybean findings show most states are set to have smaller yields compared with last year, with the exception of the Northern Plains. Missouri, Nebraska, and South Dakota have lower yield outlooks accounting for the majority of this year’s expected decrease. FBN’s current prediction of lower U.S. yields puts the balance sheet in a position to have declining stocks.
| Rural Advocate News | Monday August 15, 2022 |
Monday Watch List Markets Back from the weekend, traders will still be considering USDA's new estimates from Friday, keeping close track of the latest weather forecasts and watching for any news from Ukraine. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT Monday, followed by NOPA's monthly soybean crush report at 11 a.m. and USDA's Crop Progress report at 3 p.m. Weather A system setting up a cold front across the Central Plains into the Ohio Valley is active Monday morning with moderate to heavy rain in southern South Dakota and Nebraska and will get into southwest Iowa later today. All of these areas are in desperate need of rainfall and look to get it. Heat continues south of here with triple-digit temperatures yet again for the Central and Southern Plains and perhaps the Delta as well. Cool temperatures through the rest of the Corn Belt are easing stress for filling corn and soybeans
| Rural Advocate News | Friday August 12, 2022 |
Congressional Research Office Details Ag Provision in Inflation Reduction Act The Congressional Research Service this week published details of the Inflation Reduction Act regarding agriculture. The Senate passed the bill, which is considered a substitute to the House-passed Build Back Better Act, on August 7, and the House will consider the bill Friday (today). The legislation provides $19.5 billion for agricultural conservation. It would add over $18 billion in additional funding for existing farm bill conservation programs. The bill also provides debt relief for distressed farm borrowers and assistance for underserved farmers and ranchers. These provisions would replace similar provisions from the American Rescue Plan Act that were blocked by the courts because the relief was found to be race-based and not narrowly tailored to meet a compelling state interest. The legislation would support renewable energy initiatives, primarily by providing $13.3 billion for farm bill energy title programs, and provide $5 billion in funding for forest management, planning and restoration. *********************************************************************************** U.S. Harvesters and Heavy-Duty Tractors Gain in July, Smaller Units Continue Decline U.S. and Canadian ag tractor monthly unit sales in July 2022 fell, while combine sales grew in the U.S., according to the latest data from the Association of Equipment Manufacturers. U.S. total farm tractor sales fell 21 percent for the month of July compared to 2021, while combine sales for the month grew 9.2 percent to 715 units sold. That’s the second straight month of gains in combine harvesters so far this year. Heavy-duty ag tractors were positive, but total farm tractor sales are down 14.8 percent year-to-date, while combine sales are approaching even, now down only 2.2 percent on the year. In Canada, overall unit sales in tractors were down 10.7 percent, while harvesters are down 22.1 percent, reversing the previous month’s improvement. AEM’s Curt Blades says, “Right now, the trends we’re seeing in farm equipment unit sales tracks with trends we’re seeing in the overall economy.” *********************************************************************************** USDA Awards $74 Million to Improve Rural Health Care The Biden administration Thursday announced a $74 million effort to improve health care facilities in rural communities. The USDA Rural Development grants will help 143 rural health care organizations expand critical services for 3 million people in 37 states, Guam and Puerto Rico. The investments include $32 million for 67 rural health care organizations to help more than one million people living in socially vulnerable communities. The Biden administration made the funds available in the Emergency Rural Health Care Grants Programs through its historic legislative package, the American Rescue Plan Act. The investments will help rural hospitals and health care providers implement telehealth and nutrition assistance programs, increase staffing to administer COVID-19 vaccines and testing, build or renovate facilities, and purchase medical supplies. They also will help regional partnerships, public bodies, nonprofits and Tribes solve regional rural health care problems and build a stronger, more sustainable rural health care system in response to the pandemic. *********************************************************************************** USDA to Invest $15 Million in Innovative Projects for Climate-Smart Agriculture The Department of Agriculture this week announced a $15 million investment for the Conservation Innovation Grants Classic program. Through the program, grantees work to address water quantity, air quality, soil health and wildlife habitat challenges, all while supporting agricultural production. This year's funding priorities are climate-smart agriculture, addressing invasive species and conservation in urban agricultural systems. USDA’s Natural Resources Conservation Service Chief Terry Cosby says, “We’re eager to help our nation’s farmers and ranchers address these challenges and opportunities, and science and innovation will help get us there.” For the fiscal 2022 award process, at least ten percent of the total funds available are set aside for proposals that entirely benefit historically underserved producers. Applications are being accepted now through October 11, 2022. Private entities whose primary business is related to agriculture, nongovernmental organizations with experience working with agricultural producers and non-federal government agencies are eligible to apply. For more information and to apply, visit grants.gov *********************************************************************************** USDA Invests $2.2 Million to Help Underserved Producers, Small Farms The Department of Agriculture Thursday announced a $2.2 million award to 16 organizations to educate historically underserved producers, small-scale farmers and others. The award from USDA's Risk Management Agency funds farm risk management and climate-smart farm practices. USDA says the funding provides the resources for organizations, such as nonprofits and universities, to develop training and resources for producers on risk management options. RMA Administrator Marcia Bunger says, "This funding and these partnerships help us reach communities that have historically lacked access to training and resources." This $2.2 million investment for 2022 builds on a nearly $1 million investment in 2021. RMA advertised available funding in January 2022, and more than 50 organizations applied. Successful applicants provided comprehensive summary of work statements and budgets, and proposals that demonstrated an ability to partner with other entities to deliver training. Organizations receiving funding this year include nonprofits, historically black colleges and universities, and university extensions, among others. ********************************************************************************** National Farmers Union Schedules Washington Fly-in National Farmers Union members will head to Washington, DC, next month for the organization’s Fall Legislative Fly-In Sunday, September 11th through Wednesday, September 14. During the four-day gathering, Farmers Union members from across the country will meet with Members of Congress, of Agriculture officials, and representatives from other federal agencies. Throughout the meetings, Farmers Union members will share their legislative and policy priorities for the final months of 2022. Farmers Union members will highlight the need for Fairness for Farmers policies, which include placing a special investigator for meat and poultry at USDA, strengthening the Packers and Stockyards Act, bringing more openness to the cattle market, re-establishing Country Of Origin Labeling for beef, and ensuring that farmers have the right to repair their own equipment. Discussions will also be held to outline NFU’s priorities for the upcoming 2023 Farm Bill and how the Inflation Reduction Act can best help family farmers and ranchers address the climate crisis.
| Rural Advocate News | Friday August 12, 2022 |
Friday Watch List Markets The University of Michigan's index of U.S. consumer sentiment is set of 9 a.m. CDT Friday, followed by USDA's WASDE and Crop Production reports at 11 a.m. CDT. One hour later, the Farm Service Agency will release its first estimate of prevented plantings in 2022. Traders will keep their usual habits and stay close to the weather forecast. Weather A disturbance moving through the Upper Midwest is bringing scattered showers and thunderstorms to Minnesota and Wisconsin Friday morning and will continue to press a bit eastward throughout the day. Some moderate to heavy rain will be possible in spots. Other scattered showers remain possible across the Southeast as a front continues to slip south through the region. Meanwhile, heat continues to be widespread through the majority of the Plains, stressing filling crops.
| Rural Advocate News | Thursday August 11, 2022 |
Consumer Price Index: Inflation Continues for Food Prices The latest Consumer Price Index released Wednesday shows a continued increase in the cost of food in the United States. The food index increased 1.1 percent in July, the seventh consecutive monthly increase of 0.9 percent or more. The food at home index rose 1.3 percent in July as all six major grocery store food group indexes increased. The index for nonalcoholic beverages rose the most, up 2.3 percent, as the index for coffee rose 3.5 percent. The index for other food at home rose 1.8 percent, as did the index for cereals and bakery products. The index for dairy products increased 1.7 percent, and the index for meats, poultry, fish, and eggs rose 0.5 percent in July after declining in June. The index for fruits and vegetables also increased 0.5 percent over the month. The overall Consumer Price Index was unchanged in July after rising 1.3 percent in June, and the gasoline index fell 7.7 percent in July. *********************************************************************************** Ukraine Reports 2.66 Million Metric tons of Ag Exports in July Ukraine's Ministry of Agrarian Policy reports the country exported 2.66 million metric tons of grains and oilseeds in July 2022, 22.7 percent more than June. Exports of wheat increased more than three times in July to about 412,000 tons compared to 138,400 tons that were shipped for export in June. At the same time, this is significantly less than the 960,000 tons of wheat exported from Ukraine in July 2021 through the working seaports of the country, but the impact of the new crop is noticeable. Ukraine shipped 183,000 tons of barley, higher than the 26,000 tons of barley exported a month earlier. However, this is less than the 1.1 million tons of barley shipped in July last year. Corn exports increased in July by 84.7 thousand tons compared to June and amounted to 1.1 million tons. For comparison, in July 2021, corn exports were at the level of 960,000 tons, because traditionally, at this time, the Ukrainian corn season was coming to an end. *********************************************************************************** Growth in Number of Farmers Markets Slows New data released Wednesday from USDA’s Economic Research Service shows the growth in the number of farmers markets is slowing. According to USDA’s Agricultural Marketing Service, from 1994 to 2019, the number of farmers markets rose from 1,755 to 8,771 in 2019, averaging growth of nearly seven percent per year. Expansion began to slow in 2011 before eventually falling below a one-percent per year increase between 2016 and 2017. Since then, growth in the number of farmers markets has remained modest and stable. A USDA ERS report found that shares of local food sales have increased at intermediate market outlets, such as grocery stores, restaurants, and distributors. Increased availability of local products at these outlets corresponds with a plateau in purchases at direct-to-consumer outlets such as farmers markets and contributes to the observed slower growth relative to the prior two decades. According to the 2019 National Farmers Market Manager Survey, about two-thirds of farmers market vendors reported an increase in overall production. *********************************************************************************** USDA Invests Nearly $8M to Improve Dietary Health and Nutrition Security The Department of Agriculture Wednesday announced the availability of nearly $8 million to support the Gus Schumacher Nutrition Incentive Program Produce Prescription Program. The funding is part of USDA’s American Rescue Plan efforts and will be administered by USDA’s National Institute of Food and Agriculture. GusNIP Produce Prescription projects provide financial and non-financial incentives to income-eligible individuals and families to purchase fresh fruits and vegetables to improve dietary health through increased consumption of fruits and vegetables. By bringing together stakeholders from various parts of the food and health care systems, GusNIP projects foster understanding to improve the health and nutritional status of participating households and use data to identify and improve best practices on a broad scale. The awards fund GusNIP Produce Prescription meritorious applications from fiscal year 2021 that were highly ranked but could not be funded at the time due to budget constraints. Seventeen projects are being funded. *********************************************************************************** Pro Farmer Crop Tour Upcoming Pro Farmer scouts will fan out across the Corn Belt to measure this year's corn and soybean yield potential during the 30th annual Pro Farmer Crop Tour, set for August 22-25. The tour is an August ritual covering seven Midwestern states and capturing the attention of the industry and media. Observations and results will be shared nightly at in-person events throughout the tour routes and live-streamed online. Registration is required to attend nightly meetings and to access live-streamed results each night. Pro Farmer Crop Tour is the most thorough and most followed inspection of yield potential during a critical time in the growing season. Crop industry stakeholders watch results closely for insights around projected grain supplies and the effects on commodity markets. Farmer-scouts and industry experts will cover corn and soybean fields across Illinois, Indiana, Iowa, Minnesota, Nebraska, Ohio and South Dakota during Crop Tour. Interested participants can register for the crop tour online at profarmer.com/register. *********************************************************************************** CHS Foundation to award Grants to Teachers for Agriculture Projects For 75 years, the CHS Foundation has helped develop the next generation of ag leaders for lifelong success. In honor of the milestone, the foundation is awarding $75,000 in grants for K-12 teachers to implement a project at their school that will engage students in experiential agricultural education. Funds will be awarded for projects that have a strong tie to agriculture and demonstrate how they will engage students in agricultural topics. Teachers are encouraged to dream big, but ideas include implementing a new ag class or pathway or purchasing agriculture equipment for hands-on learning. Written and video submissions will be accepted until October 1, 2022. First place will be awarded $20,000, second place will receive $15,000, and third place will receive $10,000. An additional 12 finalists will be selected, and each receive $2,500. The initiative is open to any K-12 educators in a CHS trade territory. For more information about the program, visit chsfoundation.org.
| Rural Advocate News | Thursday August 11, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as the weekly U.S. jobless claims, the Labor Department's producer price index for July and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage follows at 9:30 a.m. Traders will continue to stay on top of the latest weather forecasts and watch for any news regarding Ukraine or export sales. Weather It is a tale of two halves across the U.S. on Thursday. Heat continues to build across the West and Plains while milder air is being reinforced by a secondary cold front east of the Mississippi River. Widespread showers continue in the Southeast today and isolated showers will form on the edge of the hot-cold dynamic across the Upper Midwest. Some heavier precipitation will be possible in North Dakota into Minnesota overnight into Friday.
| Rural Advocate News | Wednesday August 10, 2022 |
Legislation to Protect and Expand Broadband Access Senators Tammy Baldwin of Wisconsin and Joni Ernst of Iowa introduced bipartisan legislation to protect and expand access to high-speed internet in rural communities and encourage rural broadband investment. The Access to Capital Creates Economic Strength and Supports Rural America Act would provide regulatory relief to rural telecommunications service providers by allowing them to submit streamlined financial reports to the Securities and Exchange Commission. These small businesses are often the only service providers in their regions and could be put out of business by looming regulatory costs. The ACCESS Rural America Act would save small businesses from costly SEC reporting requirements that were never intended for them. “Reliable high-speed broadband is essential to rural families, students, and farmers,” says Baldwin. “Unfortunately, rural telecom companies are getting hit with costly reporting fees that are intended for much-larger companies, threatening to upend their businesses and halt their service to the communities.” *********************************************************************************** Tyson Foods Reports Sales Slump Amid Lower Demand, Higher Costs Reduced domestic and international demand for pork is hitting Tyson Foods, one of the nation’s top pork producers. The Arkansas-based meatpacker reported this week that the company earned approximately $25 million from its pork business for the three months ending on July 3. That’s about 63 percent lower than the same quarter in 2021. The company reports that China, the biggest consumer of pork in the world, is buying less pork from the United States. Company executives also reported this week that U.S. stores are buying less pork as well. Hog farmers find themselves needing to decrease the number of pigs they’re raising this year because of higher corn prices for feeding the animals and fewer buyers at the grocery store. Domestically, U.S. farms had approximately 72.5 million head of hogs as of June 1, down one percent from the same day in 2021. Tyson expects that the tight live hog supply will continue. *********************************************************************************** USDA Boosts Conservation on Grazing Lands and Support for Farmers, Ranchers The USDA is investing up to $12 million in partnerships that expand access to conservation technical assistance for livestock producers and increase the use of conservation practices on grazing lands. The Natural Resources Conservation Service is accepting proposals through its Grazing Lands Conservation Initiative until September 22. “Privately-owned grazing lands cover nearly 30 percent of our national landscape, which means we have a tremendous opportunity to address climate change and conserve our natural resources through voluntary, private lands conservation,” says NRCS Chief Terry Cosby. Project proposals for GLCI Cooperative agreements will identify and address barriers to accessing grazing assistance for producers. Through GLCI, the NRCS will leverage partnerships to increase the availability of technical assistance for farmers and ranchers engaged in grazing activities and act as a guide for grazers seeking additional resources. The initiative will expand and establish new peer-to-peer networks for grazers and direct financial support to grazing mentors. *********************************************************************************** Shrinking U.S. Cattle Herd Likely Means Higher Beef Prices American shoppers struggling with inflation are looking at higher beef prices continuing in their local meat cases. Because of high feed prices and severe drought, ranchers were forced to reduce their cattle herds. Grain prices have dropped to their lowest levels since Russia invaded Ukraine, but Reuters says that might not mean lower food prices right away at the grocery store. Corn futures have dropped by 26 percent since they hit a 10-year high in April after the Ukraine conflict sparked supply worries. However, those corn prices are still nine percent higher than last year. While the lower prices benefit livestock producers, U.S. government data showed on July 1 that producers had already lowered the nation’s cattle herd by approximately two percent compared to last year. Ground beef prices are already ten percent higher than last year. Because of continuing drought in cattle country, producers will likely still have to liquidate even more cattle. *********************************************************************************** Soybean and Wheat Inspections for Overseas Delivery Rise The USDA says export inspections of soybeans and wheat rose week-to-week while corn assessments dropped during the week ending August 4. Bean inspections during the week jumped to 867,500 metric tons from almost 595,000 a week earlier. That’s also significantly higher than the 115,000 metric tons examined during the same week in 2021. Wheat assessments rose to 604,000 metric tons during the week, up from just over 308,000 during the previous week. That was down from the 654,000 metric tons during the same week last year. Corn inspections dropped to 555,000 metric tons, significantly lower than the 905,000 tons during the prior week. Since the marketing year began on September 1, corn inspections total 52.5 million metric tons, down from the same time last year. Soybean inspections now stand at 54.5 million metric tons, lower than last year. Wheat assessments total 3.5 million metric tons, trailing the 4.45 million tons from last year. *********************************************************************************** New AgView Feature Furthers Protection for U.S. Pork Industry A new feature from AgView, a pig contact-tracing platform, helps further protect the U.S. pork industry from Foreign Animal Diseases. Producers can now continuously share info with state animal health officials thanks to the new feature that allows them to voluntarily opt-in, log info for each site, and share information. The new feature will allow producers to share individual site owners and contact info for each site,, movement data, Secure Pork Supply documentation, and Lab results. With this information always available, state animal health officials can better monitor foreign animal disease concerns, even without a declared FAD event. AgView is funded by the Pork Checkoff and provides herd health and movement data at the state and federal levels to promote business continuity in case of an FAD concern. All pork producers are encouraged to sign up and participate in AgView, and there’s no additional cost for Pork Checkoff-paying producers to take part.
| Rural Advocate News | Wednesday August 10, 2022 |
Wednesday Watch LIst Markets The Labor Department will release the U.S. consumer price index for July at 7:30 a.m. CDT Wednesday, a number that will factor into Fed policy. The U.S. Energy Department's weekly report of energy inventories is set for 9:30 a.m. and includes ethanol production. At 1 p.m., the Treasury releases federal budget data for July. Traders continue to stay close to the latest weather forecasts and any news regarding Ukraine. Weather A front continues to move southeast through the country with scattered showers from Texas into the Mid-Atlantic and points southward on Wednesday. Meanwhile, heat is building back into the Plains north of the front. A secondary cold front is moving through the Dakotas and Upper Midwest, which will be the focus for showers late Wednesday through Thursday, but will be rather quiet during the day.
| Rural Advocate News | Tuesday August 9, 2022 |
Senate Passes Inflation Reduction Act, Includes Ag Funding The Inflation Reduction Act passed by the Senate over the weekend includes some $40 billion of agricultural-focused funding. Passed along party lines, with Vice President Kamala Harris casting the tie-breaking vote, the legislation seeks to address prescription drug prices, climate, and reducing the federal deficit. Senate Agriculture Committee Chair Debbie Stabenow, a Michigan Democrat, says the legislation "gives farmers the resources they need to tackle the climate crisis by reducing carbon pollution and other greenhouse gas emissions." However, the committee's top Republican, Senator John Boozman of Arkansas, alleges Democrats are “passing their far-Left agenda, including reviving parts of the radical Green New Deal, raising taxes on job creators, turbocharging the IRS to harass taxpayers, and expanding the federal government’s reach." The bill includes $4 billion for drought resilience directed to the Bureau of Reclamation, and $3.1 billion in funding for distressed borrowers of USDA loans, according to Politico. The legislation also includes funding for USDA conservation programs and rural development. *********************************************************************************** USDA: Farmland Values up More Than 12% U.S. farmland prices increased 12.4 percent over the last year, according to new data from the Department of Agriculture. USDA's National Agricultural Statistics Service released the 2022 Land Values Summary Friday afternoon. The report shows the U.S. farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,800 per acre for 2022, up $420 per acre from 2021. The U.S. cropland value averaged $5,050 per acre, an increase of $630 per acre, or 14.3 percent, from the previous year. Finally, the U.S. pasture value averaged $1,650 per acre, an increase of $170 per acre, up 11.5 percent from 2021. In the Corn Belt region, cropland values increased 15.3 percent from $6,880 per acre in 2021, to $7,930 per acre in 2022. New Jersey and California have the highest average cropland values, with Ney Jersey at $15,900, up 7.4 percent from 2021, and California at $15,410, up 11.2 percent from last year. *********************************************************************************** Direct-to-Consumer Farm Sales Reach $10.7 Billion in 2020 Information updated Monday by USDA’s Economic Research Service shows in 2020, U.S. farms sold almost $10.7 billion of food commodities directly to consumer outlets and supply chains. This includes restaurants, grocery stores, regional distributors and local institutions. The figure is nearly $2.8 billion, or 35 percent more than sold in 2019. From 2019 to 2020, sales at farmers markets and restaurants and grocery stores increased by 11 and 13 percent, respectively, whereas sales at farm stores, community-supported agriculture, and other direct-to-consumer channels increased by 79 percent. Meanwhile, sales to regional distributors increased by 73 percent. However, sales to local institutions declined by 86 percent in 2020 relative to 2019, likely because of closures or restricted operations related to the COVID-19 pandemic. Overall, in 2020, 73 percent of total direct sales occurred through intermediary supply chains, while the remaining 27 percent were direct-to-consumer outlets. USDA adds that about seven percent of America’s two million farms sold commodities through direct-to-consumer outlets. *********************************************************************************** USDA Investing $14.5 Million for Taxpayer Education, Outreach Efforts for Agriculture The Department of Agriculture announced funding for two outreach and education efforts for farmers and ranchers late last week. USDA's Farm Service Agency is investing $10 million for agriculture-oriented taxpayer education as well as $4.5 million in outreach for the Conservation Reserve Program's Transition Incentives Program. Both efforts help advance equity and access to USDA programs and agriculture. Deputy Undersecretary for Farm Production and Conservation, Gloria Montaño Greene, says, “Running a farm operation is tough, and we are working to help meet gaps where farmers need assistance.” FSA’s $10 million investment funds the new Taxpayer Education and Asset Protection Initiative. The partnership with the University of Arkansas, the National Farm Income Tax Extension Committee and others, establishes hubs for taxpayer education while developing and delivering tax education resources. For the Conservation Reserve Program's Transition Incentives Program, $4.5 million will award stakeholder organizations to conduct outreach and provide technical assistance to promote the program. *********************************************************************************** House Ag Committee to Host Farm Bill Listening Session in Ohio House Agriculture Committee Chair David Scott Monday announced an upcoming Farm Bill listening session in Ohio. The session is the next in a series titled "A 2022 Review of the Farm Bill: Perspectives from the Field." The House Agriculture Committee has conducted several hearings in Washington, D.C., focused on the 2018 Farm Bill and improvements that can be made in the 2023 Farm Bill. The Georgia Democrat, Scott, says the series of listening sessions allows House Agriculture Committee Members to gather input from producers and consumers on the ground across the country. The next session in the series takes place at 12:00 p.m. ET at Terra State Community College in Fremont, Ohio, on Monday, August 22. It will be hosted by Congresswoman Marcy Kaptur, an Ohio Democrat, and chaired by House Agriculture Subcommittee Chair Cheri Bustos, an Illinois Democrat. The event is open to the public, and additional dates and locations will be announced in the coming weeks. *********************************************************************************** CFTC Seeks Nominations for Agricultural Advisory Committee The Commodity Futures Trading Commission seeks nominations for the Agricultural Advisory Committee membership and public input on upcoming priorities. In a Federal Register notice, the CFTC made the request, with a deadline of September 7, 2022. Through public meetings, the committee advises the Commission on agricultural derivatives market regulatory issues and priorities important to producers, processors, consumers, and other stakeholders. The committee is authorized to submit reports and recommendations to the Commission. CFTC Chairman Rostin Behnam, sponsor of the Agricultural Advisory Committee, says the committee’s mission “is particularly important in light of recent environmental developments and geopolitical events affecting the agricultural markets." There are five active Advisory Committees overseen by the CFTC. They were created to provide advice and recommendations to the Commission on a variety of regulatory and market issues that affect the integrity and competitiveness of U.S. markets. The Advisory Committees facilitate communication between the Commission, market participants, regulators, and academics.
| Rural Advocate News | Tuesday August 9, 2022 |
Tuesday Watch List Markets A report on second-quarter U.S. productivity is due out at 7:30 a.m. CDT Tuesday, the only official report on the docket ahead of the Labor Department's consumer price index on Wednesday. Traders will keep an eye on the weather forecasts, notice the ship reports out of Ukraine and watch for to see if there's another export sale announcement from USDA at 8 a.m. CDT. Weather A front is bringing some relieving temperatures to parts of the Plains and Midwest on Tuesday. Along and south of the front it will be much warmer and widespread showers are likely to occur. The rains are falling on some drought areas from Texas to the northern Delta which should help to ease the stress. Meanwhile, heat is building across the West and leaking out into the Northern Plains.
| Rural Advocate News | Monday August 8, 2022 |
Food Prices Post Biggest Drop Since 2008 Global food prices fell by the biggest amount since 2008 due to easing concerns over the supplies of grains and vegetable oils as Ukraine restarted its exports. The United Nations world food cost index dropped almost nine percent in July. Bloomberg says the index is at its lowest level since January before Russia’s attack on Ukraine helped push the cost of food close to record levels. It’s the fourth-straight monthly drop in the U.N index, giving some relief to consumers struggling with a cost-of-living crisis covering everything from energy to transportation. However, food prices are still high, and global hunger is getting worse. Wheat and corn prices eased last month after Russia and Ukraine reached a deal to reopen Ukraine’s ports. While there are still many challenges yet to solve, three more grain ships left the country’s ports on Friday. Corn harvests in Argentina and Brazil are also helping to ease prices. *********************************************************************************** First-Half Beef Exports on a Billion-Dollar Pace America’s beef exports remained on a red-hot pace during June, topping $1 billion for the fifth time this year. Data compiled by the U.S. Meat Export Federation also shows that pork exports stayed below last year’s totals during June while lamb exports continued trending higher. June’s beef exports reached 130,600 metric tons, down slightly from the record volume posted in May but up 16 percent year-over-year and the fourth-largest on record. June’s export value was $1.05 billion, also down slightly from the May record but 31 percent higher than last year. Beef export value through the first six months reached $6.19 billion. June’s pork exports totaled 219,100 metric tons, eight percent lower than last year, and valued at $649.9 million. First-half pork exports were 18 percent below last year and valued at $3.62 billion, 16 percent lower than 2021. June lamb exports rose 56 percent compared to 2021 at 1,700 metric tons. *********************************************************************************** Drought Now Covers Half the U.S. Over 50 percent of the U.S. was in at least some level of drought for the fourth-straight week. The U.S. Drought Monitor says the combination of extreme heat and low rainfall is pulling moisture from plants and the soil. The Western U.S. and, especially, California remains in a drought that’s lasted several years. While drought is an increasing worry in the Northeast, Midwest, and South, extreme rainfall events are hitting parts of Kentucky and Mississippi. A flash flood warning was issued for St. Louis late last week, thanks to rainfall rates of several inches per hour. Drought also expanded in some parts of the Southern Plains, particularly in Texas, where the consequences are hitting agriculture and cattle ranching. Drought impacts in Texas ranged from crop failure to water supply problems. The only improvement in the monitor came from heavy rains in the Texas Panhandle, Oklahoma, Arkansas, northern Mississippi, and parts of Tennessee. *********************************************************************************** USDA Extends Comment Period on Proposed Poultry Transparency Rules The USDA is extending the public comment period for its proposed rule to promote transparency in poultry grower contracting and tournaments to August 23. USDA is taking these steps to help ensure the integrity of the federal rulemaking process and to ensure all parties have the opportunity to comment fully. “There is fear throughout the meat and poultry industry as we saw earlier in the year at two Congressional hearings where witnesses didn’t testify due to concerns of retaliation,” says Ag Secretary Tom Vilsack. “But it’s critical that we hear the full story, so we are highlighting the option for comments to be provided anonymously.” Information regarding the proposed rule and the commenting process is also now available in a recorded webinar that’s posted on the Agricultural Marketing Service website. The webinar provides information on the proposed rule to protect American poultry growers from abuses and enhance competitiveness in U.S. livestock and poultry markets. *********************************************************************************** Beyond Meat’s Bubble Starting to Burst Beyond Meat, the plant-based meat company is generating a lot of bad news recently. Food Fix says the company’s stock fell late last week on news it was lowering its revenue forecast for the year. That announcement came one day after saying it would lay off four percent of its workforce to burn less money. A MarketWatch article says the company needs to “dramatically cut costs and lower its spending, or it will wind up bankrupt.” The company’s stock price has been cut in half since the start of 2022, and that’s after share prices had already dropped 45 percent in 2021. The company’s highest valuation of $15 billion now stands at $2 billion. Ethan Brown, founder and CEO of Beyond Meat, says the layoffs are a piece of its larger strategy to reduce expenses and support sustainable growth. Beyond Meat is struggling to turn partnerships with companies like McDonald’s into profitable endeavors. *********************************************************************************** POET Ethanol Gets Into Shipping POET, the world’s largest biofuel producer, says it signed a purchase agreement with Savannah Marine Terminal to acquire its rail-to-container transload facility in Savannah, Georgia. The acquisition will include all equipment and real estate to operate the grain transload facility. The Port of Savannah is one of the highest volume container ports in the U.S. It also has closer proximity to several of POET’s key global markets for its animal feed products. A release from POET says the facility will strengthen POET’s shipping process, ensuring greater traceability and transparency for its customers, who already expect the best in food safety and quality. “This acquisition is yet another indicator of our confidence in the future of the bioeconomy,” says POET Founder and CEO Jeff Broin. “We look forward to the opportunities this facility will create to ensure that our growing suite of plant-based bioproducts is available to consumers across the globe.”
| Rural Advocate News | Monday August 8, 2022 |
Monday Watch List Markets Back from the weekend, traders will pore over the latest weather forecasts and watch for further news from Ukraine and Taiwan. USDA's weekly grain export inspections will be out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Weather A front that moved through the Upper Midwest over the weekend with some heavy rain will continue southeast through the Midwest on Monday. Scattered showers and thunderstorms will develop along the front from Kansas to the southern Great Lakes. A few of those showers over southern Wisconsin and northern Illinois are falling where heavy rain developed over the weekend and could cause flooding. Temperatures remain hot south of the front, which continues to produce stress for filling corn, soybeans, and other summer crops.
| Rural Advocate News | Friday August 5, 2022 |
ReConnect Round Four Funding Application Period is Open USDA Rural Development Undersecretary Xochitl (So-CHEEL) Torres Small says the agency will begin accepting applications on September 6 for funding to expand access to high-speed internet in rural America. USDA is making the next round of funding available through the ReConnect Program, which received new funds from the Bipartisan Infrastructure Law. “High-speed internet connects people and small businesses to new markets and helps people in rural America build brighter futures,” Torres Small says. “For too long, many rural communities have been left out of the digital economy.” The Department will begin accepting applications on up to $150 million in loans, up to $300 million in loan/grant combinations, and up to $700 million in grants. USDA made several improvements to the ReConnect Program in Round Four to increase the availability of funding in rural areas where residents and businesses lack access to affordable, high-speed internet. More information is available at rd.usa.gov. *********************************************************************************** Dakotas Make Up Large Share of Prevent Plant Claims Since 2007, North and South Dakota had a large share of prevent-plant claims. The University of Illinois’ Farm Doc Daily says those states accounted for 35 percent of U.S. corn and soybean prevent plant acres versus nine percent and 12 percent, respectively, of total acres planted to corn and soybeans. Compared with other North Central states, average planting progress on the first date that prevent-plant can be taken is notably slower in these two states. Farm Doc says this finding implies that farmers in North and South Dakota have more of an opportunity to opt for prevent-plant, prompting a significant insurance policy question: “Should prevent-plant first decision day be set so that the normal planting progress rate is the same for all areas when it’s time to make the prevent-plant decision?” Evidence suggests the prevent plant acres would drop in both states if the first decision day occurred later. *********************************************************************************** EPA Requests Partial Rehearing in Glyphosate Litigation Earlier this week, the Environmental Protection Agency submitted a petition to the Ninth Circuit Court of Appeals requesting a partial rehearing of its glyphosate interim decision. In that ruling, the panel vacated the interim decision’s human health risk assessment and sent back the ecological risk assessment to the agency to complete an Endangered Species Act analysis by October 1. The EPA is seeking a partial rehearing because of the ecological part of the decision. In its request, the EPA says that finalizing an ESA consultation is a multi-year process, for which the panel only granted 106 days. EPA also says it can’t comply with the order because it has to coordinate with other agencies that aren’t part of the lawsuit. The agency requested the court grant the rehearing to consider lifting the October 1 deadline. The American Soybean Association is a party to the litigation and monitoring the case for further developments. *********************************************************************************** Tyson Foods Ignoring Subpoena in Meat Price Gouging Probe New York’s attorney general says Tyson Foods is refusing to comply with a subpoena for a civil probe into possible price gouging during COVID-19. Letitia (Leh-TEE-sha) James asked a state judge in Manhattan to make Tyson turn over materials like contractual terms, prices, and profit margins for its meat sales to New York retailers between December 2019 and April 2022. James says Tyson, one of the largest U.S. meat producers, stopped complying after giving limited information based on the company’s argument that New York’s price gouging law didn’t apply to meat products brought in from outside the state. James called that “novel and unfounded,” pointing out in a recent court filing that it can only be tested by examining the same materials that Tyson now refuses to hand over to her office. Reuters says Tyson declined to comment on the subpoena, saying it raised meat prices to offset soaring labor and feed costs. *********************************************************************************** Ethanol Production Reaches Highest Level in Four Weeks The Energy Information Administration says ethanol output jumped to its highest level in a month while inventories increased slightly. Production of the biofuel rose to an average of 1.043 million barrels a day during the week ending on July 29. That’s up from 1.021 million barrels daily during the previous week and is the highest output since the seven days that ended on July 1. In the Midwest, output averaged 984,000 barrels a day, up from 962,000 the previous week and also the highest point in a month. Production in the Gulf Coast increased to 25,000 barrels a day, on average, from 23,000 barrels. That was all the weekly gains as East Coast output was unchanged at 12,000 barrels a day and Rocky Mountain production remained at 15,000 barrels a day. West Coast output dropped by 7,000 barrels a day. Stockpiles rose modestly to 23.394 million barrels a day during the week. *********************************************************************************** Oil Falls Below $90 a Barrel Oil prices declined to the lowest point in almost six months, caused by weakening gasoline demand and recessionary fears weighing down markets. Bloomberg says West Texas Intermediate fell to $87.78 a barrel, a level last seen during the weeks before Russia invaded Ukraine. The price drop this week was jump-started by government data showing Americans are driving less than they did in the summer of 2020. Fears of a slowing economy have intensified along with the potential impacts on crude demand. One senior market analyst says prices falling under $90 a barrel is “quite remarkable” given how tight the market is and how little relief is in store. Crude oil has now given up all of the gains triggered by the Russian invasion of Ukraine. Since it peaked at more than $130 a barrel, the benchmark has dropped due to signs that Moscow is still getting its oil cargoes onto the global market.
| Rural Advocate News | Friday August 5, 2022 |
Friday Watch List Markets The U.S. Labor Department will release its reports of nonfarm payrolls and U.S. unemployment for July at 7:30 a.m. CDT, two factors the Fed will be closely watching. Traders will keep close watch on the latest weather forecasts, any news from Ukraine and any more talk of possible exports to China. A report on U.S. consumer credit in June is set for 2 p.m. Weather Showers will continue along a stalled boundary near the Ohio River on Friday. Those showers will keep temperatures down a few degrees. But elsewhere across much of the Plains and Midwest, temperatures will rise well above normal. The heat is ahead of a cold front that is moving through the Northern Plains. The front will produce some scattered showers and thunderstorms, some of which may be severe. Temperatures behind the front are much cooler, offering a brief break from the summer heat.
| Rural Advocate News | Thursday August 4, 2022 |
ISDA Sets November Hemp Inspection Date Despite the significant interest for hemp or hemp-derived products, they are not recognized as legal feed ingredients. In a recent memorandum, the Idaho State Department of Agriculture (ISDA) said that effective Nov. 1, it will be inspecting for hemp and hemp-derived products in commercial animal feeds and animal remedies (i.e., supplements). These products are illegal in Idaho and if found on or after Nov. 1, will be subject to a stop sale and further action from the department. The AFIA supports ISDA’s actions on this issue, as it is one step toward ensuring these products do not end up in adulterated animal feed until found as approved ingredients.
| Rural Advocate News | Thursday August 4, 2022 |
Senate Legislation Would Regulate Digital Commodities Senate Ag Chair Debbie Stabenow, Ranking Member John Boozman (BOZE-man), and Senators Cory Booker and John Thune introduced legislation to regulate digital commodities. The Digital Commodities Consumer Protection Act of 2022 would give the Commodity Futures Trading Commission new tools and authority it needs to regulate digital commodities and safeguard customers and markets. “One in five Americans have used or traded digital assets, but these markets lack the transparency and accountability they expect from our financial system,” Stabenow says. “That puts Americans’ hard-earned money at risk.” The senators say digital assets and blockchain technology have already, and will continue to change the way global markets function. They point out that the fast-growing industry is governed largely by a patchwork of state-level regulations. Boozman says that’s not an effective way to make sure the market’s rules work for everyone. “Our bill gives CFTC exclusive jurisdiction over the digital commodities spot market,” he says. *********************************************************************************** Farm Credit System’s Income up 4% in First Half of 2022 The Farm Credit System reported that combined net income increased 3.5 percent to $1.8 billion and 3.6 percent to $3.6 billion for the first three and six months of 2022, respectively. That compares with net incomes of $1.7 billion and $3.4 billion at the same time in 2021. “The System reported another quarter of solid financial performance,” says Tracey McCabe, president and CEO of the Federal Farm Credit Banks Funding Corporation. “Continued loan growth, sound credit quality, and solid capital levels position the System to support U.S. agriculture in the current volatile economic and geopolitical environment.” Net interest income increased $190 million or 7.8% to $2.6 billion for the second quarter of 2022 and $358 million or 7.4% to $5.2 billion for the six months ending June 30, 2022, as compared with the same periods of the prior year. The increase in net interest income primarily resulted from higher levels of average earning assets. *********************************************************************************** Dairy Sales See Double-Digit Growth in June Dairy department sales climbed by double digits in supermarkets across the country. Supermarket News says dairy category sales totaled just under $5.1 billion for the month, 16 percent higher year-over-year. The International Dairy Deli Bakery Association says in its June marketplace update that unit sales did drop 2.4 percent from last year. The IDDBA report says the consistency of the weekly sales levels, all at least $1.2 billion, is encouraging because it means demand is holding strong especially compared to pre-COVID levels. The biggest sales took place in the week leading up to Father’s day, with total sales of $1.3 billion. “Milk was easily the biggest seller in June at $1.3 billion,” the report says. “The next-biggest sellers were natural cheese and eggs, which moved ahead of yogurt with because of high inflation.” The average price per unit for eggs increased to $4.10, over 51 percent higher than in June 2021. *********************************************************************************** Long-Term Drought Continuing in Missouri River Basin While the Missouri River basin runoff improved over the past two months, it’s still not enough to overcome the long-term drought persisting in much of the basin. July runoff in the Missouri River basin above Sioux City, Iowa, was 3.2 million acre-feet, which is 98 percent of the average and 0.7 million acre-feet more than was forecast last month. This led to an annual runoff forecast of 20.6 MAF, which is 80 percent of the yearly average and 0.6 MAF higher than last month’s forecast. “As expected, reservoir inflows in July have been declining due to the warmer and drier conditions in the upper Missouri River Basin,” says John Remus, chief of the Army Corps of Engineers Missouri River Basin Water Management Division. “Per the July 1 System storage check, navigation support was increased slightly to 500 cubic feet per second above minimum-service levels.” Storage peaked July 1 at 52.1 MAF. *********************************************************************************** New Food Supply Threat From Lack of Rice A lack of rice could be the next big strain on the global food supply. Bloomberg says the challenge may come from a lack of rain in parts of India, which is, by far, the biggest rice exporter in the world. The drier weather has caused India’s rice planting area to contract to its smallest level in three years. The threat to India’s rice production comes when countries across the world are struggling with the soaring cost of food and runaway inflation. The world’s total planted area for rice has dropped by 13 percent this season because of a lack of rainfall. Traders fear diminished rice production will hurt India’s battle with inflation and trigger export restrictions. Billions of people around the world depend on rice and India accounts for 40 percent of the world’s rice trade. India’s government has already curbed exports of wheat and sugar to safeguard their food supply. *********************************************************************************** Next USDA Trade Mission heading to East Africa The USDA is accepting applications from U.S. exporters for a trade mission to Nairobi (Ny-ROW-bee), Kenya, and Zanzibar, Tanzania (Tan-zah-NEE-ah), from October 31-November 4. The mission offers U.S. agribusinesses the chance to unlock new opportunities in East and Central Africa, where strong economic growth is driving demand for imported food and farm products. Kenya is the economic, financial, and transportation hub for East and Central Africa. While in Nairobi, trade mission delegates will meet potential customers from across Sub-Saharan Africa. Then, they’ll head to Zanzibar, located in the Indian Ocean off the coast of Tanzania, a historic trading hub with a thriving tourism sector. “The Foreign Agricultural Service team looks forward to introducing U.S. exporters to the many business opportunities that exist in East and Central Africa,” says FAS Administrator Daniel Whitley. “We’ll arrange targeted business meetings, site visits, and other networking opportunities with potential importers, processors, distributors, and local officials.”
| Rural Advocate News | Thursday August 4, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, the trade deficit for June and an update of the U.S. Drought Monitor. USDA will have more specific export information later Thursday morning and at 9:30 a.m., the Energy Department will report on natural gas in storage. Traders continue to monitor the weather and any news regarding Ukraine. Weather A frontal boundary moving through the Midwest is starting to stall out near the Ohio River. Scattered showers will continue along the front and could cause some flooding in Missouri and southern Illinois. Temperatures will be a little more seasonable in these areas, otherwise, the heat is continuing south of the front and returning to the Northern Plains as an upper-level ridge continues to dominate the overall pattern.
| Rural Advocate News | Wednesday August 3, 2022 |
Farmer Sentiment Rises in July The Purdue University/CME Group Ag Economy Barometer farmer sentiment index rose six points in July to a reading of 103. Producers were somewhat more optimistic about both their current and future economic conditions on their farms compared to June. Even though there was a slight increase in optimism, there’s still a lot of uncertainty in the agricultural economy. Key commodity prices, including wheat, corn, and soybeans all weakened during the month, and producers remain concerned over rising input prices and input availability. Forty-two percent of survey respondents said higher input prices were a big concern, 19 percent said lower crop prices, and 17 percent said rising interest rates. The Farm Financial Performance Index, primarily an indicator of income expectations in the year ahead, improved five points to a reading of 88 in June. However, 49 percent of the survey respondents said they expect their farm to be worse off financially a year from now. *********************************************************************************** Registration Open for the Federal Milk Marketing Order Forum The American Farm Bureau Federation is hosting an industry-wide forum on the Federal Milk Marketing Order on October 14-16 in Kansas City, Missouri. The forum was prompted by a call from Ag Secretary Tom Vilsack to get as many people involved in dairy as possible in one room to discuss solutions to the Federal Milk Marketing Order shortfalls. The forum will include panels on various aspects of the Federal Milk Marketing Orders followed by roundtable discussions structured to spur conversation among all parts of the dairy sector but with a clear focus on farmers. “Meaningful changes to the FMMO system are long overdue,” says Farm Bureau President Zippy Duvall. “Even before COVID-19 highlighted how volatile milk prices and outdated milk pricing and pooling provisions were harming dairy farmers, it was clear the FMMO system needs modernizing to address consolidation in processing, shifting consumer preferences, and fluctuating trade demands.” Go to fb.org for information. *********************************************************************************** U.S. Rice Growers Want Access to Cuba USA Rice and other industry leaders are pushing for the American government to get rid of trade barriers with Cuba and make it easier for U.S. rice exports to get to the island nation. Rice groups are members of the U.S. Agriculture Coalition for Cuba, a group that supports improving agricultural trade between the U.S. and Canada. “USA Rice wants an administrative and legislative piecemeal approach to help ease the current restrictions on trade, travel, and financing, so that Cuba can grow its economy and become a reliable importer of American rice again,” says USA Rice Vice President of Policy and Government Affairs Peter Bachmann. Cuba is a major rice consumer and once was among the top markets for U.S. rice exports. USA Rice says Cuba has to bring in rice from Asian and South American countries. Cubans are struggling with food shortages and a lack of medicine, energy, and fuel. *********************************************************************************** USDA Undersecretary says Ag Can Be a Hero on Climate Change America’s farmers have an opportunity to be a hero in addressing climate change through improvements in productivity and climate-smart practices. However, Robert Bonnie, USDA Undersecretary for Farm Production and Conservation, says a successful climate program “has to work for agriculture.” Bonnie spoke at the International Sweetener Symposium on Monday. Thanks to strong farm policies, America’s sugarcane and sugarbeet farmers invest in new research, technologies, and techniques to boost their efficiency and protect the planet. Sugar farmers produce 16 percent more sugar today on 11 percent less land than 20 years ago. They’ve also increased yields by 30 percent while using fewer inputs. Bonnie says there’s so much diversity in agriculture that the approach to climate change can’t be one that dictates practices for low and high. “It has to be modern, and it has to be producer-led,” Bonnie says. “Farmers and ranchers should be able to choose what works best for them.” *********************************************************************************** National Chicken Council Reacts to FSIS Move on Salmonella in Frozen Products The National Chicken Council responded to the USDA’s Food Safety and Inspection Service plan to declare salmonella an adulterant in frozen, raw, breaded, stuffed chicken products. Dr. Ashley Peterson, senior vice president of scientific and regulatory affairs, says they recognize the special nature of the products that appear ready to eat but contain raw chicken. “The NCC and our member companies have invested millions of dollars and worked for over ten years to develop and refine the best practices to reduce Salmonella and protect public health,” Peterson says. The NCC points out that it's concerned about the precedent set by this abrupt shift in long-standing policy, which was made without supporting data for a product category associated with one outbreak since 2015. “We believe FSIS already has the ability to ensure the continued safety of these products,” Peterson says. “There’s no magic bullet for food safety, so we employ a multi-stage strategy.” *********************************************************************************** Land Prices Continue to Set New Records The sale prices for good cropland in rural America continue upward, reaching new high points in many states. Farmers National Company says the “record” sale prices continue to capture headlines, but there has generally been continued strength in the land market, with good cropland attracting the most attention from buyers. “The upcoming months will set the trend in land prices,” says Randy Dickhut (DICK-hoot), senior vice president of real estate operations at Farmers National. Recently, good cropland in Iowa sold above $25,000 per acre, $15,000 per acre in South Dakota, and $12,000 an acre in North Dakota. Further east, Illinois had land sales above $21,000 an acre, Indiana at $17,000 an acre, and Ohio has seen $16,000 per acre. Land sales in Nebraska were above $13,500 per acre, $14,500 in Missouri, and more than $8,000 in Kansas. Farmers National will be watching before and after this year’s harvest to gauge the future land market.
| Rural Advocate News | Wednesday August 3, 2022 |
Wednesday Watch List Markets There is a report of U.S. factory orders due out at 9 a.m. CDT, but it is for the month of June and pales by comparison to the manufacturing indices for July just released on Monday. At 9:30 a.m., the U.S. Energy Department's weekly report of energy inventories is due out and includes ethanol production. Traders will continue to keep a close watch on the weather forecasts and any news of more ships leaving Ukraine. OPEC and other oil producers meet Wednesday to decide output for September. Weather A ridge of high pressure continues to produce heat across much of the country on Wednesday. However, there is a front moving across the Upper Midwest this morning that is producing scattered showers and thunderstorms from Nebraska to Michigan. Those showers and thunderstorms may be severe as the front slides southeast later in the day from Missouri through Michigan. Behind the front, temperatures are not too cold, but are offering some relief from the heat and humidity that is building up ahead of it.
| Rural Advocate News | Tuesday August 2, 2022 |
Farm Lending and Interest Rates Rise in the Second Quarter Larger loans continued to boost lending activity in the second quarter of 2022 while farm loan interest rates edged higher. The Federal Reserve Bank of Kansas City says the volume of non-real estate agricultural loans grew steadily alongside an increase in the number and average size of loans. Interest rates remained historically low but continued to increase in recent quarters and on nearly all types of farm loans as benchmark rates continue rising. The average maturity of some types of loans, particularly for real estate, also increased during the quarter and was above recent historic averages. The Kansas City Fed says farm lending activity showed signs of rebounding from the pullback in recent years and could grow further in the coming months as the higher costs of many major inputs continue impacting farmers. Persistent pressure from higher production expenses could squeeze profit margins going forward and drive demand for credit higher. *********************************************************************************** 2021 Farm Production Expenses Surpassed $390 Billion In 2021, USDA says farm production expenses hit $392.9 billion, higher than the $366.2 billion in 2020. That’s a 7.3 percent rise from 2020 to 2021. The four biggest expenditures totaled $189.4 billion, just over 48 percent of all expenses last year. Those four are feed at 16 percent, farm services at 11 percent, livestock, poultry, and related expenses at 10 percent, and labor at 9.4 percent. The total fuel expense was $12.9 billion on 2021. Diesel is the largest sub-component and totaled $8.4 billion in expenditures, accounting for 65 percent of the total fuel outlay. Diesel expenditures were 18 percent higher than in 2020. Gasoline expenses totaled $2.4 billion, 22 percent higher than the previous year. LP gas expenses rose to $1.4 billion in 2021, an 11 percent jump from 2020. Crop farm expenditures were $207.6 billion, up 6.2 percent, and livestock farm expenditures increased to $185.3 billion, up 8.5 percent in 2021. *********************************************************************************** USA Takes Action to Prevent Salmonella in Poultry Products The USDA’s Food Safety and Inspection Service announced it will declare Salmonella as an adulterant in breaded and stuffed raw chicken products. “Food safety is at the heart of everything,” says Ag Secretary Tom Vilsack. “This is an important first step in launching a broader initiative to reduce Salmonella illnesses associated with poultry in the U.S.” By declaring Salmonella an adulterant in these products, FSIS will be able to ensure highly contaminated products that could make people sick aren’t sold to consumers. Since 1988, breaded and stuffed raw chicken products have been associated with up to 14 outbreaks and approximately 200 illnesses. Those products include frozen chicken cordon bleu or chicken Kiev. They appeared to be cooked but were only heat treated to set the batter or breading. The poultry was still raw. These products will be adulterated when exceeding a small contamination threshold and be subject to regulatory action. *********************************************************************************** Sorghum Producers Remind Others to Comment on EPA Atrazine Proposal The National Sorghum Producers says the Environmental Protection Agency is taking “another swing” at atrazine. They say the regulatory agency disregarded sound science, transparency, and the regulatory framework in this proposal. The sorghum producers want farmers from all over the U.S. to join them in submitting comments and stopping the EPA from using regulatory tricks to drastically limit the use of a critical input for farmers. Atrazine is included in more than 90 herbicide products across the country and limiting atrazine will cause problems. Atrazine is used on 75 percent of U.S. sorghum acres, and the proposal would have drastic impacts on a large number of those acres. The proposal would significantly reduce application rates and require additional mitigation measures and reporting procedures. It also prohibits all aerial application and application when rain is in the forecast within 48 hours. USP wants the EPA to stick to the finalized 2020 atrazine registration. *********************************************************************************** Florida Congressman Wants Investigation into Chinese Land Purchases If Republicans take back a Congressional majority in November, Florida Representative Mike Waltz pledged that the House GOP would investigate the flow of Chinese money into the U.S. economy. Waltz tells Daily Mail that the steady encroachment not only poses a military threat but could also have wide-ranging impacts on the American economy. Recent reports have shown that Chinese companies are increasing their hold over key sectors of the U.S. economy by purchasing farmland and expanding their technology into rural areas. Lawmakers on both sides of the aisle are concerned about a Chinese company buying land in North Dakota for $2.6 million which is only 20 minutes from a key military base. Some of America’s most sensitive drone technology is stored at that base in North Dakota. “There’s the land concern near the base, but I think an even bigger concern is China investing in the U.S. food supply chain,” Waltz says. *********************************************************************************** U.S. Wheat Associated Promote Miller to Director of Programs U.S. Wheat Associates promoted Catherine Miller to Director of Programs. She joined USW in 2018 as the Programming and Planning Coordinator and shifted to Programs Coordinator in 2021. “Catherine has done a great job in managing many of USW’s domestic programs, and she excelled in helping USW transition to virtual programming when COVID-19 began,” says Erica Oakley, USW Vice President of Programs. In this role, Miller will lead program support for coordinating trade teams, short courses, and board teams with USW’s overseas offices and state wheat commissions. Miller also works closely with overseas staff to identify consultant needs and coordinate annual crop quality seminars. Miller will also continue supporting USW’s shift to more virtual programs, including taking an active role in conducting monthly webinars and crop updates. Miller joined the organization after graduating with honors from Auburn University in May 2017, earning a bachelor’s degree in agriculture business and economics.
| Rural Advocate News | Tuesday August 2, 2022 |
Tuesday Watch List Markets There are no significant reports on Tuesday's docket, but traders continue to keep close watch over the latest U.S. weather forecasts and news from Ukraine. Markets will digest Monday afternoon's new crop ratings from USDA and look forward to the announcement from the next OPEC meeting Wednesday. Weather Hot temperatures are spreading across the Plains, western Midwest and Delta on Tuesday with triple-digit heat being likely in a lot of areas. The heat will reduce soil moisture and stress crops and livestock. Precipitation will be limited across the Upper Midwest and Ohio Valley down into the Southeast.
| Rural Advocate News | Monday August 1, 2022 |
Ag Chair Introduces Livestock Legislation House Ag Committee Chair David Scott introduced the Small Family Farmer and Rancher Relief Act to help small farmers and ranchers in the cattle industry. “As I’ve said before, it’s a crisis in this nation that we’ve lost an average of 17,000 cattle ranchers per year,” Scott says. “The drivers of the loss are complex, and I applaud the efforts my colleagues have taken to try and improve the cattle industry.” He also says other efforts don’t have enough emphasis on direct help for America’s small farmers and ranchers. A key backbone of the bill helps smaller operators with financial assistance by strengthening the safety net. It includes offering an increased premium subsidy for small ranchers insuring a cattle herd of 100 head or less. It offers incentives for insurance agents to better market Livestock Risk Protection policies to smaller producers. The bill also creates opportunities to increase competition and new marketing opportunities. *********************************************************************************** Inflation Reduction Act Should Help Rural America Ag Secretary Tom Vilsack says the administration’s Inflation Reduction Act will have a meaningful impact on America’s rural and agriculture communities. “Agriculture is at the forefront of our fight against climate change,” he says. “From climate-smart agriculture to supporting healthy forests and conservation, to tax credits, to biofuels, infrastructure and beyond, this agreement gives USDA significant additional resources.” House Ag Chair Debbie Stabenow says the act contains almost $40 billion to tackle the climate crisis, lower costs, and create good-paying jobs by investing in agriculture, forestry, and rural communities. Over $20 billion is set aside for the tools farmers and ranchers need to help address the climate. Those funds will help incentivize sustainable practices like optimizing fertilizer use and expanding cover crops. $14 billion will help lower costs for families and support good-paying clean energy jobs in rural communities. “It’s critical that Congress act quickly on this legislation,” Vilsack says. *********************************************************************************** New Lamb Market Monthly Report Will Help Producers The American Lamb Board announced the introduction of a new monthly lamb market summary to provide the industry with increased data and analysis. The board engaged the American Sheep Industry Association to prepare the monthly Lamb Market Summary. The report will include sheep and lamb slaughter, lamb imports, sheep and lamb prices, and a market forecast. An economic overview of the consumer market will also be included, which influences the food choices in the U.S. The July summary points out that “consumer prices continued to rise in June, with the Consumer Price Index posting a higher than expected 9.1 percent year-over-year increase. High fuel prices will likely push food costs higher. Consumers appear to be managing food price inflation for now, but expectations continue for more inflation, and an impending economic slowdown will challenge consumer demand. The Lamb Market Weekly Summary, USDA Market Reports, and year-in-review reports can be found at lambresourcecenter.com. *********************************************************************************** Wheat Quality Tour Estimates 49.1 Bushel Yield The Wheat Quality Council’s Tour through fields in North Dakota and Minnesota came up with a yield estimate of 49.1 bushels per acre. The durum estimate after the tour was 39 bushels an acre. Those figures were the highest levels since 2008. The yield estimate for spring wheat is higher than the USDA forecast of 47 bushels an acre that came out on July 12. For durum wheat, the tour result is a bit smaller than the USDA estimate of 40.3 bushels. Almost 50 people took part in the wheat tour, with many coming from the wheat, milling, and baking industries and USDA officials. Last Thursday, scouts stopped at several fields along the North Dakota-Minnesota border and sampled on both sides. The spring wheat weighted average that day, including the Minnesota fields, was 53.1 bushels. Participants assessed a total of 267 spring wheat and 35 durum fields, mostly in North Dakota. *********************************************************************************** Senate Overwhelmingly Passes Water Resources Development Act Last Thursday, the Senate overwhelmingly passed the Water Resources Development Act by a vote of 93-1. The legislation contains a provision pushed for by the American Soybean Association. That provision would permanently adjust the cost-share ratio for Inland Waterways Trust Fund projects from the current 65 percent general revenues-35 percent IWTF funds to 75 percent general revenue-25 percent IWTF. Cost share allocation changes for inland waterways projects often reduce overall project costs and allow projects to be completed faster. That allows communities and industries to realize the economic benefits of a project more quickly. In June, the House passed its version of WRDA by a vote of 384-37. That bill didn’t include the same adjustment to cost-share allocations for IWTF projects. The two chambers will now begin conference negotiations to reconcile the difference between the two bills. The ASA says it will continue to advocate for the Senate version containing the adjustment. *********************************************************************************** Keeping Farm Dog Safe From Heat Stress Dogs aren’t proficient at sweating like humans are, and that makes them much more prone to overheating. Tony Hawkins, Valley Vet Supply Technical Services Veterinarian, says overweight, older, or out-of-shape dogs, or dogs with underlying health conditions, may be at greater risk than healthier dogs. Dogs suffering from heat stress may demonstrate excessive panting, difficulty breathing, vomiting, and diarrhea. At that point, it’s critical that the animal gets veterinary care. Tips to keep dogs safe include never leaving dogs in parked cars that are turned off. In just 25 minutes, a car on a 73-degree day can reach 100 degrees inside. Also, plan those farm activities dogs can tag along for, such as checking fences, during the cooler times of the day. Hawkins says dogs aren’t good at stopping themselves when they get hot and just run themselves until they get overheated. Also, clip those dogs with long hair coats.
| Rural Advocate News | Monday August 1, 2022 |
Monday Watch List Markets Back from the weekend and facing hotter temperatures this week, traders will check the latest forecasts and any new developments from Ukraine. Report of manufacturing activity around the world will come in overnight with ISM's U.S. index for July set for 9 a.m. CDT Monday. USDA's weekly report of grain export inspections is due out at 10 a.m., followed by the Crop Progress report at 3 p.m. Weather A disturbance moving through the eastern Midwest and an old boundary from the weekend will combine to create scattered showers along and east of the Mississippi River on Monday. Some stronger storms will be possible near the Ohio River later in the day. Where showers are not occurring, heat will be increasing, with near triple-digit temperatures up and down the Plains, causing stress to both crops and animals.
| Rural Advocate News | Friday July 29, 2022 |
Administration Announces $401 Million for Rural Internet Access USDA Secretary Tom Vilsack says the agency is investing $401 million to provide access to high-speed internet for 31,000 rural residents and businesses in 11 states. The funds come from the ReConnect Program and an award through the USDA’s Telecommunications Infrastructure Loan and Loan Guarantee Program. “Connectivity is critical to economic success in rural America,” Vilsack says. “The internet is vital to our growth and continues to act as a catalyst for our prosperity.” The secretary also said from the farm to the school, from households to international markets, connectivity drives “positive change.” USDA will support internet investments in Alaska, Arizona, Arkansas, California, Colorado, Idaho, Montana, New Mexico, Nevada, North Dakota, and Texas. The Department also says it will make more investments for rural high-speed internet later this summer, including ReConnect Program funding from the bipartisan infrastructure law, which provides $65 billion to expand affordable high-speed internet to all communities across the U.S. *********************************************************************************** Senators Introduce the Farmland Security Act Wisconsin Senator Tammy Baldwin and Chuck Grassley of Iowa introduced the Farmland Security Act to increase scrutiny over foreign investments into America’s agricultural land. The legislation would make sure that Congress can address the impacts of foreign investments on family farms, rural communities, and the domestic food supply. “This bipartisan legislation will provide the tools we need to protect the longevity of American family farm operations for generations to come,” Baldwin says. Current reports show that foreign-owned agricultural acreage has nearly doubled in the past ten years. One of the provisions in the act would require the Ag Secretary to report to Congress on foreign investments in agricultural land, including the impact foreign ownership has on family farms, rural communities, and the domestic food supply. “Foreign buyers, especially those backed by governments like China, purchasing farmland in the U.S. raises serious national security concerns that the people need to know about,” Grassley says. *********************************************************************************** Bunge Loses $59 Million to Ukraine Conflict Bunge profits rose 15 percent during the second quarter of 2022. However, the global farm commodities company didn’t reach Wall Street expectations and the share price dropped five percent as a result. The company raised its full-year profit forecast and talked about plans to spend $3.3 billion on future investments and expenditures during the next few years. Bunge attributed a $59 million net loss for the quarter in its agribusiness segment because of the war in Ukraine. CEO Gregory Heckman says it will be a slow process for shippers to move commodities out of Ukraine and into the global markets. The company’s results come amid backed-up supply chains and strong demand for food and fuel driving inflation to its highest level in decades. Bunge’s rising operating costs offset higher demand and tighter supplies of commodity grain crops. Transportation and ongoing COVID-19 issues continue to drag down the world’s grain sector. *********************************************************************************** NCBA’s Farm Bill Priorities The National Cattlemen’s Beef Association released its priorities for the 2023 Farm Bill. Those priorities were based on producer input at the association’s Summer Business Meeting in Reno, Nevada. “Our annual meetings are the cornerstone of NCBA’s grassroots policy process,” says NCBA President Don Schiefelbein. NCBA Farm Bill priorities include protecting animal health through programs that guard against the spread of foreign animal diseases such as the National Animal Vaccine and Veterinary Countermeasures Clinic. They want the new farm bill to strengthen risk management programs that provide producers with added protection against weather events and price declines. The NCBA wants the bill to promote voluntary conservation programs that provide support to producers when they implement conservation practices free from government mandates. They say the new farm bill should also support disaster recovery programs that help producers return to normal operations following adverse weather, predator attacks, or extreme weather conditions like drought or wildfire. *********************************************************************************** U.S. Grains Council Elects New Chairman The delegates of the U.S. Grains Council elected Josh Miller as Chairman of its Board of Directors during the Board of Delegates Meeting in California. “It’s important to me to learn as much as I possibly can,” Miller said during incoming remarks. Miller is a farmer from Indiana and came to the meeting representing the Indiana Corn Marketing Council. “I also want to learn as much as I can about how what I do affects the whole world and how my efforts create a global ripple that will sustain those who need what I grow the most,” he added. Miller is a fifth-generation farmer from Indiana and produces corn and soybeans, primarily as a 100 percent no-till row crop operation. He was elected to the Council’s officer rotation in 2019. Previously, Miller was a finance officer for Lockheed Martin, a contracting officer for the U.S. government, and a U.S. Marine Corps Staff Sergeant. *********************************************************************************** Protecting Horses Against West Nile Virus Since 1999, more than 25,000 cases of West Nile Virus encephalitis have been reported in horses, according to the American Association of Equine Practitioners. “When you talk about West Nile Virus, you’re talking about the Culex (KOO-lex) mosquito,” says Dr. Justin Talley, Department Head for Entomology and Plant Pathology at Oklahoma State University. “The biggest challenge is that in addition to feeding on horses, they also feed on birds, which is why they’re good at transmitting the virus into horses.” The number of cases is difficult to predict every year and will vary based on bird populations. You will see more mosquitoes in late summer or the fall, so the chances can improve greatly from the summer. Moving air plays a big part in mosquito control. “Get the air moving around horses because mosquitoes are weak fliers,” Talley says. “Don’t forget vaccinations and good barn keeping. Remove standing water and clean a horse’s water trough.”
| Rural Advocate News | Friday July 29, 2022 |
Friday Watch List Markets U.S. personal incomes and spending for June are due out at 7:30 a.m. CDT Friday, along with the employment cost index for the second quarter. At 9 a.m., the University of Michigan's final index of U.S. consumer sentiment for July will be released. Traders will keep close watch on the latest weather forecasts and any news regarding Ukraine. Weather A front is settling across southern areas of the country on Friday, bringing scattered showers from Colorado east to the Carolinas. Flooding may occur in some areas, but drought in the Southern Plains and Delta will find some relief. Temperatures dip a little bit less extreme south of the front for most areas, but heat continues to be very high in the West, especially in the Pacific Northwest.
| Rural Advocate News | Thursday July 28, 2022 |
Next Generation Fuels Act Introduced in House, Senate Legislation called the Next Generation Fuels Act was introduced this week in both the Senate and House of Representatives. It aims to leverage higher-octane fuels to improve engine efficiency and performance. Allowing the sale of fuels with greater octane levels would increase the amount of ethanol that can get utilized in the fuel supply, which in turn would lower prices at the pump. Iowa Senators Chuck Grassley and Joni Ernst introduced it in the Senate, while Illinois Representative Cheri Bustos and the entire Iowa delegation introduced it to the House. “Unstable gas prices have left many families, and especially rural families, with a lot of budget uncertainty,” says Grassley. “This would ramp up the use of homegrown fuel at stations across the country, making Americans less reliant on foreign oil and less vulnerable to OPEC tactics.” Ernst echoed those sentiments, noting that America should be turning to its own abundant domestic fuel production. *********************************************************************************** Ag Groups React to the Next Generation Fuels Act Some of the nation’s largest agricultural organizations applauded the introduction of the Next Generation Fuels Act in both chambers of Congress this week. National Corn Growers Association President Chris Edgington says it’s a step forward for the nation’s consumers. “In recent months, consumers have been reminded that we need choices at the pump, and the Next Generation Fuels Act would diversify our fuel supply.” National Farmers Union President Rob Larew says the legislation supports usage of higher-level blends of ethanol, something NFU has long championed. “Higher level blends of ethanol are good for farmers, good for the planet, and good for American pocketbooks,” Larew says. Geoff Cooper of the Renewable Fuels Association says, “This summer’s geopolitical instability and record-high gas prices underscore the need for an immediate energy solution for American families.” Growth Energy CEO Emily Skor says, “It’s a clear roadmap for delivering cleaner, more affordable options to American drivers.” *********************************************************************************** Survey says Consumers are Relying on Chicken Despite Inflation Research presented at the 2022 Chicken Marketing Summit shows that U.S. consumers are still buying chicken. The survey showed that while consumers average rating for their current financial situation is midway between “poor” and “excellent,” 87 percent are buying the same amount or more of fresh chicken compared to six months ago. Chicken continues to be the healthy choice and best value for the money. During the past six months, 99 percent of those surveyed say they eat meals made with fresh chicken more than once a month while 88 percent do so more than once a week. U.S. consumers plan to buy more chicken than other types of protein in the year ahead. Chicken buyers cite nutrition, value, and versatility as the top reasons for consuming more chicken. Chicken is almost inflation-proof as USDA says Americans, on average, will eat a record 98.3 pounds of chicken per person this year. *********************************************************************************** AFT Releases Policy Priorities for 2023 Farm Bill American Farmland Trust released its 2023 Farm Bill advocacy platform this week. It’s a series of policy recommendations focused on supporting farmers and ranchers in protecting their land from development, combating climate change, and enabling a diverse new generation of farmers to better access land and build businesses. “The farm bill, which is passed once every five years, is the single most influential piece of federal legislation in food and agriculture,” says AFT president and CEO John Piotti (Pee-AHT-tee). “Our policy recommendations, developed with input from producers and experts across the country, will help ensure that the 2023 Farm Bill sets agriculture on a path towards a more resilient, profitable, and equitable future.” AFT research has found that 11 million acres of agricultural land were paved over, fragmented, and converted to uses that jeopardize agriculture between 2011-2016. An additional loss of 18.4 million acres were expected by 2040 without additional policy actions. *********************************************************************************** NCBA Backs Food and Energy Security Act The National Cattlemen’s Beef Association announced it supports the Food and Energy Security Act introduced by Senator John Thune of South Dakota. The bill would require federal regulators to disclose how proposed rules would impact food and energy prices. “The Biden administration proposed a massive climate disclosure rule that will create new reporting burdens for every farm, ranch, and small business in the country,” says NCBA Environmental Counsel Mary-Thomas Hart. “NCBA supports this legislation because rules like the emissions disclosure mandate from the Securities and Exchange Commission add a costly burden to cattle producers, rural communities, and consumers across the country.” The bill would also prohibit federal regulators from implementing any rule that would increase food or energy prices if inflation is higher than 4.5 percent. Since the beginning of 2022, inflation has consistently been over seven percent, with the inflation rate hitting a forty-year high of 9.1 percent in June. *********************************************************************************** Soybean Checkoff Leaders Approve Investments to Increase Demand The farmer-leaders of the United Soybean Board recently finished their summer board meeting in Michigan and approved a budget of $123 million for program work beginning in October. They set investments in research, education, and promotion to add value to U.S. soybeans and build resilience, differentiation, and reputation. The eight investment portfolios align with USB’s new vision of delivering sustainable soy solutions to every life, every day. “Our thinking, planning, and work as a board has become a much more deliberate and idea-driven process, challenging our board members to think big,” says USB Chair and New York farmer Ralph Lott. “Each portfolio works together to create demand for U.S. soybeans across the entire global soy value chain.” He also says that USB has shifted from “project takers” to “portfolio makers,” and the result is more strategic thinking. USB says U.S. soybeans are preferred worldwide, and farmers are seeing strong ROI on their dollars.
| Rural Advocate News | Thursday July 28, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly jobless claims, and updates of second-quarter U.S. GDP and the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is due out at 9:30 a.m., given extra attention by this week's news Russia is cutting gas supplies to Europe. Traders will keep an eye on the latest weather forecasts and any news regarding Ukraine. Weather A pair of fronts are combining across the southern Corn Belt on Thursday and producing scattered showers and thunderstorms from Colorado to the Mid-Atlantic throughout the day. Moderate to heavy rain is expected and some areas of flooding will be possible. South of the fronts, temperatures again will be hot in Texas and Oklahoma east to the Mississippi River, though not as extreme as earlier in the week. The Pacific Northwest will be the hottest spot in the country today with temperatures well above normal.
| Rural Advocate News | Wednesday July 27, 2022 |
Poultry Producers Settle Claims on Unfair Worker Treatment Three of the biggest poultry processors in the U.S. will settle claims by the Justice Department over their alleged efforts to work together to drive down employee compensation. Reuters said Cargill, Sanderson Farms, and Wayne Farms agreed to pay a combined $84 million in restitution to workers harmed by their alleged information sharing in order to settle civil antitrust lawsuits. The Antitrust Division of the DOJ said in a statement that through a “brazen scheme” to exchange wage and benefit information, these producers stifled competition and harmed a generation of plant workers who face demanding and sometimes dangerous conditions to earn a living. The settlement was filed on Monday in a Maryland District Court shortly after the lawsuits got filed. Wayne Farms says the settlement shows the company’s commitment to its workers and farmers. Cargill admitted no wrongdoing but said it settled with the Justice Department to avoid further litigation. *********************************************************************************** USDA Says Rising Food Prices Could Ease in 2023 The all-items Consumer Price Index increased 1.4 percent from May to June and is 9.1 percent higher than in June of last year. USDA once again raised its consumer food price inflation forecast from 8.5 percent to 9.5 percent for 2022. In their first forecast for next year, USDA says inflation will slow to a range between 2.5 percent and 3.5 percent. That’s more in line with the 20-year historical average increase for consumer food prices, which is 2.4 percent per year. The 8.5-9.5 percent rise between 2021 and 2022 is the biggest increase in overall food price inflation since 1979 when prices rose 11 percent. The biggest increase was in the fats and oils category, now forecast to rise 16.5-17.5 percent this year compared to 2021. Poultry, dairy, and cereals-bakery goods are other categories with large price increases. Food at home price is now forecast at 11 percent higher in 2022. *********************************************************************************** Risk Management Programs Critical for Dairy Success The National Milk Producers Federation commended farmers from its member cooperatives who are speaking up for dairy’s needs during farm bill listening sessions held by members of Congress. “From sustainability and trade to providing an adequate safety net to producers of all sizes, dairy farmer voices are critical to crafting federal farm programs that serve the entire nation,” says Jim Mulhern, president and CEO of NMPF. “We commend the farmers who own our member cooperatives for sharing their insights.” During a listening session in Minnesota, Steve Schlangen, chair of Associated Milk Producers, Inc., emphasized the value of the Dairy Margin Coverage Program that was created in the 2018 Farm Bill. Schlangen urged the committee to strengthen the program by carrying the Supplemental Dairy Margin Coverage update over into the next farm bill to compensate farmers for modest production increases that have taken place since the program formula was created in 2014. *********************************************************************************** USDA Starts Issuing Payments for Spot Market Hog Pandemic The USDA is increasing the amount of funding available for the Spot Market Hog Pandemic Program and expects to issue approximately $62.8 million in assistance payments to producers this week. SMHPP assists eligible producers who sold hogs through a spot market sale between April 16 and September 1 in 2020. “In order to provide more targeted support to hog producers affected by COVID-19, FSA was able to increase funding for SMHPP to provide full payments instead of applying a payment factor,” says FSA Administrator Zach Ducheneaux. “We’re happy to be able to provide more equitable assistance for hog producers hit hard by the pandemic.” Terry Wolters, president of the National Pork Producers Council, says they appreciate FSA’s commitment assisting those pork producers hit by the economic disruptions. “Producers forced into spot market hog sales are still challenged by those market disruptions, so this will help in the recovery,” he says. *********************************************************************************** Farmfest Offering Livestreamed Forums on Farm Bill, Ag Outlook, and More National farm and ranch leaders will be in Minnesota for Farmfest on August 2-4 at the Gilfillan Estates near Morgan, Minnesota. They’ll be discussing agricultural topics like the farm bill, the agricultural outlook for the year ahead, and many others. The feature forum will be Tuesday, August 2, at 1:15 pm Central Time, when the primary focus will be on the key topics getting considered as Congress develops the 2023 Farm Bill. Wednesday’s forum schedule starts at 8:30 am and will feature grain marketing, weather, ag policy, crop, and livestock experts sharing perspectives on the year ahead. A Women in Agriculture event will conclude with the presentation of the Farmfest Woman Farmer of the Year on Thursday. “In-person attendees and those tuning in on Livestream will benefit from the insights shared by our lineup of presenters,” says Melissa Sanders Carroll of IDEAg (Idea Ag). For a full schedule and to see the Livestream events, go to Farmfest.com. *********************************************************************************** Cattle Industry Business Meeting This Week in Reno, Nevada More than 600 leaders in the cattle industry are at the Summer Business Meeting in Reno, Nevada, this week and providing direction for the industry’s important programs. The event includes meetings of cattlemen and women representing the National Cattlemen’s Beef Association, the Cattlemen’s Beef Promotion and Research Board, American National CattleWomen, and the National Cattlemen’s Foundation. “These meetings give us a great opportunity to engage with one another,” says NCBA President Don Schiefelbein (SHEEF-ell-byne). “I appreciate the time and effort producers commit to coming together to strengthen our industry.” Producers will discuss current developments, work on initiatives developed at Convention, and make plans for the upcoming fiscal year. Other highlights include Sam’s Club executives sharing their knowledge of working on the consumer-facing side of the beef industry. The next time cattle producers come together will be at the 2023 Cattle Industry Convention and NCBA Trade Show on February 1-3 in New Orleans, Louisiana.
| Rural Advocate News | Wednesday July 27, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, the U.S. Commerce Department will release its report on durable goods orders for June, expected to show a decline on the month. An index of pending U.S. home sales is due out at 9 a.m., followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. At 1 p.m., the long-awaited announcement from the Federal Reserve will be out with many anticipating a 0.75% hike in the federal funds target rate. Weather A stalled front across the southern Midwest has been active over the last few days, bringing heavy rain and some flooding. This front stays active Wednesday and another front moving through the Midwest will start to combine with the western end of the front in the Central Plains later Wednesday. Widespread scattered showers and thunderstorms are expected near the southern front, with more isolated showers for the northern Midwest. Cooler temperatures are found north of the front but the heat continues across the Southern Plains and Delta. Heat is also present in the Pacific Northwest for the next several days, stressing spring wheat.
| Rural Advocate News | Tuesday July 26, 2022 |
Growth Energy, EPA Reach Agreement on 2023 Biofuel RVOs Growth Energy and the Environmental Protection Agency announced an agreement on the Renewable Volume Obligations for 2023. Last week, the two groups submitted a consent decree agreement to the U.S. District Court in Washington, D.C. The agreement requires EPA to propose the 2023 renewable volume fuel requirements no later than November 16, 2022, and then finalize the requirements no later than June 14, 2023. “The agreement is an important milestone in setting the pace for growth as we usher in a new era of the Renewable Fuel Standard,” says Growth Energy CEO Emily Skor. “The agreement avoids the uncertainty of continued litigation and ensures the certainty of the 2023 RFS requirements.” The EPA is required to coordinate with the Energy Department and the USDA to set renewable fuel volume requirements through rulemaking, taking into consideration six statutory factors, including environmental, economic, and energy security. The court is expected to approve the agreement. *********************************************************************************** U.S. Cattle Inventory Down Two Percent The Cattle Report from the USDA’s National Agricultural Statistics Service says U.S. farms contained 98.8 million head of cattle and calves as of July 1. Of the 98.8 million head of inventory, all cows and heifers that have calved total 39.8 million. There were 30.4 million beef cows in the U.S. as of July 1, two percent lower than 2021. The number of U.S. milk cows dropped to 94.5 million. The U.S. calf crop was estimated at 34.6 million head, one percent lower than in 2021. The number of U.S. Cattle on Feed is slightly higher than last year. The cattle and calves on feed for the slaughter market in the U.S. for feedlots with a capacity of 1,000 or more head totaled 11.3 million on July 1. That inventory level was slightly higher than July 1, 2021. The inventory included 6.9 million steers and steer calves, down one percent from last year. *********************************************************************************** U.S. Gasoline Prices Continue to Fall The average price of regular gasoline in the U.S. dropped 32 cents during the past two weeks to an average of $4.54 a gallon. Fuel industry analyst Trilby Lundberg of the Lundberg Survey says that the continued decline is coming at the same time crude oil costs continue to fall. Lundberg says, “Further drops at U.S. pumps are likely as the cuts in the wholesale gasoline price continues down to street level.” While the average price at the pump is down 55 cents during the past six weeks, it’s still $1.32 higher than the price a year ago at this time. The Associated Press says the highest average price in the nation for regular-grade gas was in Los Angeles at $5.65 a gallon. The lowest average price at the pump was in Baton Rouge, Louisiana, at $3.90 a gallon. Diesel prices dropped 22 cents in two weeks to $5.55 a gallon. *********************************************************************************** FFA Leaders Gathering at the New Century Farmer Conference Forty-five FFA members from around the country are gathering in Iowa to talk about how agriculture will play a pivotal role in their future during the New Century Farmer conference. The conference is a chance for FFA members intending to remain in production agriculture to work on future plans for success. “This program is important because it helps us continue growing the next generation of leaders who will not only change the world but continue to provide food, fiber, and resources for future generations,” said Allie Ellis, associate director of the National FFA Alumni & Supporters. “We’re excited to offer this opportunity to learn and grow together while expanding their networking pool.” During the week, participants will visit with producers around the state, learn from industry leaders, see innovative agricultural technology, and network with others who also plan to stay in production agriculture. Students from 22 states will make the trip to Iowa. *********************************************************************************** USDA Investing in On-Farm Conservation Trials The USDA says it will invest $25 million this year in the Conservation Innovation Grants On-Farm Innovation Trials Program. Through CIG, partners work to address the nation’s water quality, water quantity, air quality, soil health, and wildlife habitat challenges, all while improving agricultural operations. The on-farm component of the program supports widespread adoption and evaluation of innovative conservation approaches in partnership with agricultural producers. This year’s funding priorities are climate-smart agricultural solutions, irrigation water management, nutrient management, and soil health. “Through science and innovation, we can develop solutions to tackle the climate crisis, conserve water, protect soil, and create opportunities for our producers,” says Terry Cosby, Natural Resources Conservation Chief. Applications for On-Farm Trials are being accepted through September 20, 2022. Private entities whose primary business is related to agriculture, nongovernmental organizations with experience working with agricultural producers, and non-federal government agencies are eligible to apply. More information is available at grants.gov. *********************************************************************************** Dairy Checkoff Hires Sustainability Leader Dairy Management, Inc. hired Lori Captain as the executive vice president of global sustainability strategy, science, and industry affairs. Captain comes to DMI after serving more than 20 years working at Corteva Agriscience and its predecessor DuPont, most recently as chief of staff, external affairs, and counsel to the CEO. She’s also worked at Syngenta and has significant experience in sustainability, corporate communications, media relations, policy, and engagement strategies. She’ll apply that experience with DMI to help advance U.S. dairy’s vision, guiding environmental science while building support for the 2050 Environmental Stewardship Goals. “Lori Captain will be a global industry ambassador representing our sustainability strategy and progress,” says Barbara O’Brien, president and CEO of DMI. “The dairy industry has been a sustainability leader for decades,” says Captain. “I’m honored and excited to join DMI and help farmers improve their sustainability footprint in a way that’s economically viable and helps builds their business.”
| Rural Advocate News | Tuesday July 26, 2022 |
Tuesday Watch List Markets At 9 a.m. CDT Tuesday, there will be reports on U.S. new home sales in June and an index of U.S. consumer confidence for July. This is also another busy week of earnings reports and the Federal Reserve will begin its two-day meeting with a rate hike of 0.75% expected on Wednesday. Traders will keep a close watch on weather, Russia's latest moves and anything pertaining to outside markets. Weather A front stalled out from southern Kansas through the Ohio Valley remains active with scattered showers on Tuesday. Some of these showers have already been heavy early this morning from Missouri into southern Indiana. A second front moving through the Northern Plains will bring showers to the Dakotas, Nebraska, and Minnesota, offering some relief to a few drier areas in that region. South of the fronts, heat continues to be significant for the Southern Plains into the Delta and also in the Pacific Northwest.
| Rural Advocate News | Monday July 25, 2022 |
Deal Signed to Export Grain from Ukraine Officials from Russia and Ukraine signed a deal Friday to reopen grain exports from Ukraine’s Black Sea ports. Reuters says the deal should help ease the global food crisis. Officials from the United Nations expect the agreement will be fully operational in a few weeks and restore shipments to pre-war levels of five million tons per month. The deal will allow Ukraine to export the 22 million tons of grain and other agricultural products that have been stuck in the Black Sea ports due to Russia’s invasion. “A deal allowing grain to leave the Black Sea ports is nothing short of lifesaving for people across the world who are struggling to feed their families,” says Red Cross Director-General Robert Mardini. He also notes that prices for food staples have risen 187 percent in Sudan, 86 percent in Syria, 60 percent in Yemen, and 54 percent in Ethiopia over the past six months. *********************************************************************************** NCGA Call-To-Action to Protect Atrazine The National Corn Growers Association launched a call-to-action asking advocates to submit comments to the Environmental Protection Agency in response to the agency’s announcement that they are revising the registration for atrazine. The EPA says it’s amending the registration of this well-studied herbicide that allows farmers to do more with less. The new level of concern for atrazine will vastly reduce the herbicide’s effectiveness and hinder farmers’ ability to utilize a critical tool. “Corn growers know the value of atrazine, and it’s time again to tell the EPA how valuable this product is to our operations,” says NCGA President Chris Edgington. “In 2016, we came together to submit more than 10,000 comments to the agency, and we need that same momentum again.” NCGA points out that since it first came onto the market, atrazine has allowed farmers to increase their conservation tillage practices. Conservation tillage is a key to carbon-smart farming practices. *********************************************************************************** Advocates Claim Deere Right-to-Repair May Violate Clean Air Act Consumer advocates claim that John Deere may be violating the Clean Air Act by limiting repairs on the emission control systems of its machines. Such repairs are only authorized to certified John Deere dealers. Politico says the Clean Air Act requires companies to provide the necessary information, including software, to repair emission control systems in vehicles. Companies are required to confirm they’re providing the information in certification filings with the Environmental Protection Agency every year. The advocates claim that by denying the necessary parts and information for independent repair, the tractor manufacturer is violating the law. However, the company has said they restrict access to the emissions control systems because farmers could delete the software, which Deere says would also be a violation of the Clean Air Act. Deere says when emissions systems break down, farmers might view deletion as an easier option. Deere is named in 17 class-action lawsuits over repairs. *********************************************************************************** USDA Helps Schools and Childcare Providers Deal with Rising Food Costs The USDA announced an increase in funding to help schools continue to serve healthy meals this coming school year and provided financial relief for schools and childcare providers. The reimbursement schools will get for each meal served will increase by 68 cents per free or reduced-price lunch and 32 cents per free or reduced-price breakfast. The increase supports school and childcare providers dealing with rising food costs. “The boost in reimbursements will help provide financial relief for schools so they can continue serving high-quality meals to students amid higher food costs and continuing supply chain challenges,” says Stacy Dean, deputy undersecretary for food, nutrition, and consumer services. “USDA is fully committed to using every resource in its toolbelt to ensure kids get the healthy meals they need to grow, learn, and thrive.” The USDA will provide an additional $2 billion for schools to purchase domestic food for their meal programs. *********************************************************************************** Iowa Lifts HPAI Influenza Quarantine Restrictions The Iowa Department of Agriculture released the last commercial Iowa poultry farm from highly pathogenic avian influenza quarantine restrictions. Those restrictions prohibited moving poultry or poultry products on or off the affected premises and were lifted after the farm cleared all of the testing protocols and quarantine requirements. “This important milestone allows impacted farmers to turn the page from responding to the outbreak to repopulating flocks and returning to turkey and poultry production,” says Iowa Ag Secretary Mike Naig. “Moving forward, we’ll work with our partners to assess this year’s response to ensure that we’re even more prepared for any potential disease challenges in the future.” Gretta Irwin, executive director of the Iowa Turkey Association, says lifting the last commercial site quarantined in Iowa is great news. “In 2022, we had nine HPAI turkey cases instead of the 71 in 2015, which shows how far we’ve come in battling the disease,” she says. *********************************************************************************** June Egg Production Drops Three Percent, Milk Up Slightly The USDA says America’s egg production totaled 8.67 billion during June, a three percent drop from last year. Production included 7:39 billion table eggs and 1.28 billion hatching eggs. Of the hatching eggs, 1.19 billion were broilers and 89.4 million were egg-type. The average number of egg layers totaled 366 million in June, down four percent from last year. June egg production per 100 layers was 2,367 eggs, two percent higher than June 2021. Milk production in the 24 major dairy states during June totaled 18.1 billion pounds, up .3 percent from June 2021. Production per cow in the 24 states averaged 2,031 pounds in June, 20 pounds above the same time last year. The number of milk cows on farms was 8.93 million head, 65,000 less than June 2021, but 4,000 head more than in May 2022. Milk Production between April and June hit 57.9 billion pounds, down .5 percent from 2021.
| Rural Advocate News | Monday July 25, 2022 |
Monday Watch List Markets Back from the weekend, traders are looking close at this week's rain chances and will keep close track of actual rainfall amounts before a drier forecast returns in August. USDA's weekly report of grain export inspections is set for 10 a.m. CDT Monday, followed by the Crop Progress report at 3 p.m. Traders will also be watching outside markets with another rate hike expected from the Fed on Wednesday. Weather Two cold fronts are working through the Corn Belt on Monday. Across the south, widespread moderate to heavy rain is forecast while more scattered showers are moving into the Northern Plains. Rain may be heavy for flooding, even in drought areas across the southern Corn Belt. Temperatures are also much cooler behind the fronts, reducing stress for row crops and wheat. Meanwhile, heat continues south of the fronts in the Southern Plains and Delta, and is building in the Pacific Northwest, where temperatures and dryness will increase stress on spring wheat.
| Rural Advocate News | Friday July 22, 2022 |
Ethanol Production Rises After Six Consecutive Weekly Declines The Energy Information Administration says U.S. ethanol output increased for the first time in six weeks while inventories dropped slightly. During the week ending on July 15, production rose to an average of 1.03 million barrels a day. The EIA report says that’s up from just over one million barrels a day during the previous week, the first gain since June 10. The Midwest produces more ethanol than any other part of the U.S. and saw its output jump to an average of 973,000 barrels a day from 944,000 barrels a week earlier. Gulf Coast output climbed to an average of 26,000 barrels a day, up from 23,000 the prior week. That’s where all of the gains took place as the Rocky Mountain region stayed steady at 15,000 barrels a day, and the West Coast output held at 9,000 barrels a day for the eighth-straight week. Inventories dropped slightly to 23.55 million barrels. *********************************************************************************** House Democrats Introduce Child Nutrition Reauthorization Bill House Democrats introduced a bill that would reauthorize child nutrition programs. Those programs include school meals, the Special Supplemental Nutrition Assistance Program (WIC), and a number of smaller programs. The Hagstrom Report says child nutrition programs haven’t gotten reauthorized since 2010’s Healthy Hunger-Free Kids Act. The School Nutrition Association, which represents school foodservice directors and companies that make the food, says it’s expecting a markup on the legislation next week. Prospects for reauthorization are uncertain as Democrats and Republicans have had differences over the nutritional requirements in the 2010 bill. The USDA also made it easier for children to get free school meals and for mothers and infants to use the WIC program. The reauthorization bill would make some of those policies permanent. Republicans are expected to question or even oppose those policies. The Senate Ag Committee, which has jurisdiction over child nutrition in the Senate, hasn’t released its own bill. *********************************************************************************** Farm Service Agency Updates Livestock Indemnity Payments for Smaller Calves The Farm Service Agency made changes to its payment rates under the Livestock Indemnity Program. The agency changed rates for calves under 250 pounds and will now value them at the same level as non-adult cattle weighing between 250 and 399 pounds. FSA also increased payment rates for calves under 400 pounds. The U.S. Cattlemen’s Association had written FSA Administrator Zach Ducheneaux and praised the changes. The Independent Beef Association of North Dakota says the April winter storms that hit North Dakota left cattle producers with extreme losses, most of which were in cattle under 250 pounds. LIP payment rate is set at 75 percent of the fair market value. The payments have gotten updated to use the same price as the 251-399 pound livestock. The rate is now set at $474.38 a head for cattle weighing less than 250 pounds. The previous payment rate for calves under 250 pounds was $175. *********************************************************************************** American Lamb Board Working on Strategic Planning The American Lamb Board last released a strategic plan in 2018. The world has changed since then, so the Board is developing a new strategic plan, noting that it faces dynamics that the industry has previously never faced. “Instability in the economy, the economic viability of sheep production, consumer uncertainty, supply chain issues, and increasing pressure from imports are critical issues,” says ALB Chair Peter Camino (Ka-MEE-no). “We are determined to find ways for the U.S. Lamb Checkoff to help our industry through our role in promotion, research, and producer outreach.” The current plan expires in 2022 and prioritizes increasing the quality and consistency of American Lamb and regaining market share from imports. “We need to give consumers more reasons to desire and ask for U.S. lamb even though we are premium prices,” Camino says. “The past four years show that we’ve made progress in many areas, but we need to push harder and farther.” *********************************************************************************** Biden, Xi Will Talk Soon on Tariffs, Trade, and Taiwan Plans are in place for President Joe Biden and Chinese President Xi Jinping to meet by the end of the month as tensions increase over trade commitments, tariffs, and Taiwan. The two leaders last spoke on a call four months ago, and the new call would come as the administration considers cutting import duties on Chinese goods to help reduce inflation pressures on American consumers. Reuters says rising inflation has prompted the look at possible tariff relief. That relief may include cutting or dropping the Section 301 tariffs imposed by former President Trump on approximately $370 billion in Chinese imports. Sources told Reuters that the administration is considering whether to pair a removal of at least some of the tariffs with a new investigation into China’s industrial subsidies and its efforts to dominate key economic sectors. The U.S. says high-level engagement is needed to stabilize what’s been a difficult relationship between the countries. *********************************************************************************** Prices for Cereal Products Rose 11 Percent During First Half of 2022 Consumer prices for cereal products as measured by the Consumer Price Index rose about 11 percent from January through June of 2022 compared to the same time last year. It’s the largest year-over-year increase during those six months since 1981. The USDA says the rise in consumer prices for cereal products tracks with a more substantial increase in the price of wheat. The Kansas City Wheat Market most closely reflects the prices that mills pay for wheat, and cash wheat prices were up 63 percent from the same period last year. The heightened volatility follows a historically typical pattern. Price changes in commodity markets tend to be relatively more extreme than the changes in consumer prices. Generally, commodity prices make up a small portion of the value of these cereal products because of the level of transformation and transportation that these products go through while moving through the value chain.
| Rural Advocate News | Friday July 22, 2022 |
Friday Watch List Markets There are no significant reports out Friday morning, but traders will be watching the latest weather forecast and for any news regarding an agreement to allow grain shipments out of Ukraine. At 2 p.m. CDT, USDA will release its semi-annual cattle inventory report, the on-feed report for July and monthly cold storage report. Beef cow numbers in the inventory report will likely get the most attention. Weather A disturbance moving through the Corn Belt will produce some areas of showers and thunderstorms on Friday. Storms will be mostly isolated, but there could be a few patches where storms are stronger or severe. Showers will also occur in the Southeast. Between the two areas, temperatures will be increasing again, with heat and humidity making for some dangerous conditions for both humans and livestock for
| Rural Advocate News | Thursday July 21, 2022 |
NCGA: Federal Crop Insurance Still a Top Priority for Farmers Congress is continuing its review of the implementation of the 2018 Farm Bill as it prepares to debate and reauthorize the farm bill next year. A National Corn Growers Association leader testified before the House Ag Committee that federal crop insurance is essential to farming and has to get protected from harmful budget cuts. Tom Haag of Minnesota is the First Vice President of the NCGA. “Federal crop insurance is a major pillar of risk management for the vast majority of corn growers,” he said during testimony. “Simply put, the public-private partnership of crop insurance works and plays a significant role for agriculture in the wake of natural disasters.” During the development, passage, and implementation of the last farm bill, both the House and Senate Ag Committees defeated attacks on the program and found ways to strengthen the federal crop insurance program. Haag says NCGA will provide farm bill recommendations in the months ahead. *********************************************************************************** NPPC Applauds U.S.-Philippine Swine Fever Project The National Pork Producers Council is applauding a new joint effort to address the challenges of African Swine Fever. The USDA’s Foreign Agricultural Service joined with leaders from the Philippine Department of Agriculture and the Minnesota Department of Agriculture to announce the new project. It’s titled “Capacity building in risk assessment to support safe international trade of U.S. pork producers in the Philippines.” NPPC President Terry Wolters of Minnesota says, “Creating international partnerships provides further safeguards to keep American agriculture safe from foreign animal disease. That helps U.S. pork producers to continue providing customers in both countries with safe and affordable pork.” The Philippines has had ongoing ASF outbreaks and is seeking better ways to control the virus and the subsequent food price inflation. NPPC worked with the Philippine embassy in Washington, D.C., to ascertain the needs of the Philippine government and the country’s producers to help them better manage ASF outbreaks. *********************************************************************************** Bipartisan Letter to EPA Asks Agency to Support Advanced Biofuel Production Senators Chuck Grassley of Iowa and Amy Klobuchar of Minnesota, both members of the Senate Ag Committee, wrote a letter with 22 colleagues to the Environmental Protection Agency about biofuels. The letter asks EPA Administrator Michael Regan to support higher amounts of biomass-based biodiesel and other advanced biofuels in the upcoming 2023 and 2024 Renewable Volume Obligations. “Advanced biofuels have a critical role in addressing some of the economic challenges we face today,” Grassley says in the letter. The senators also say that the production and use of advanced biofuels benefit the economy and the environment in many ways. For example, the production process involves utilizing resources that would otherwise be of no use, including surplus vegetable oils, recycled cooking oils, and animal fats. Production of clean-burning, homegrown biofuels supports 13 percent of the value of U.S. soybeans. Laboratory estimates say biodiesel reduces greenhouse gas emissions by 74 percent compared to regular diesel. *********************************************************************************** Gas Prices Down 10 Percent from June Peak The national average price for a gallon of gas is below $4.50 for the first time in two months. The Washington Post says that may offer some relief for Americans struggling to make ends meet due to runaway inflation. Triple A says the national average was $4.495 on Tuesday, a ten percent drop from the June high point of more than $5 a gallon. A gallon of diesel dropped 31 cents over the last month, now at $5.51 on Tuesday. At least 35 states across the country have at least one retailer selling gas for under $4 a gallon. The fuel-tracking app GasBuddy says the lowest price this week was found in Virginia, where at least two stations are selling their gas at $3.25 a gallon. The turnaround in prices has taken industry analysts by surprise. Patrick DeHaan of GasBuddy says, “We see prices drop like this maybe twice a century. “ *********************************************************************************** Sorghum Added to USDA Food Buying Guide The USDA recently added sorghum to its Food Buying Guide for Child Nutrition Programs, the primary resource used by school foodservice directors to build menus that comply with nutrition requirements. The move represents a major step forward for Sorghum, a nutrient-rich, high-protein, gluten-free grain. “The inclusion of sorghum in the Food Buying Guide is a monumental win for sorghum producers as we continue looking for new ways to market our crop,” says Norma Ritz Johnson, executive director for the United Sorghum Checkoff Program. “This move is pivotal in our efforts to increase its visibility and ease of use among foodservice professionals.” She also says the industry is excited to deliver its nutritious whole grain to the plates of American schoolchildren. As of July 1, a new USDA requirement stated that at least 80 percent of the weekly grains in school lunch menus must be whole-grain rich, something sorghum can provide. *********************************************************************************** Ag Groups Support the “Beagle Brigade” The National Cattlemen’s Beef Association joined a coalition of agricultural organizations in calling for passage of the Beagle Brigade Act of 2022. The bill would authorize the National Detector Dog Training Center, which trains canines who are nicknamed the “Beagle Brigade.” Allison Rivera, NCBA Executive Director of Government Affairs, says the Beagle Brigade is crucial for preventing foreign animal diseases, invasive species, and pests from entering the country. “To continue the success of the Beagle Brigade’s program, we’re urging Congress to provide specific authorization for the National Detector Dog Training Center so canine teams can continue to provide robust inspections at U.S. ports of entry,” Rivera says. U.S. Customs and Border Protection officials say over 116 agricultural canine teams provide screenings at border crossings, airports, cruise terminals, cargo warehouses, and mail facilities. Brigade members play a vital role in preventing the introduction of diseases like Foot and Mouth Disease, African Swine Fever, and many others.
| Rural Advocate News | Thursday July 21, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor, followed by the Conference Board's index of U.S. leading indicators at 9 a.m. and the Energy Department's weekly report of natural gas storage at 9:30 a.m. Traders will keep close watch on the latest weather forecasts and watch to see if Russia restores gas shipments to Germany. The European Central Bank is expected to raise its interest rate by a half-percent. Weather A frontal boundary continues to push south and east across the country, though it is hard to call it a cold front with temperatures so high in many areas even north of this front. The front will be the focus for thunderstorm development, however, and some severe storms will be possible across the Southeast and up the Eastern Seaboard. To the northwest, temperatures are above-normal for most of the country except up along and across the Canadian border. There could be some pop-up showers at times through the rest of the Plains and Corn Belt, but most areas should stay dry today, increasing stress for drier areas of the country.
| Rural Advocate News | Wednesday July 20, 2022 |
Ag Land Market Will Be Active During the Fall Early indications are suggesting that land auction activity will be good both before and after the harvest in 2022. Farmers National Company says land sales typically slow during the spring and early summer. However, the rate of late summer and fall auctions getting scheduled with Farmers National Company is picking up rapidly. The overall number of sales and amount of land sold from now through the end of the year likely won’t equal the very active land market at the end of 2021. But sales activity will more than likely exceed what was seen during the slower land market years from 2015 to 2020. FNC says people are moving ahead with sales because of the historically high land prices currently in the market. Another factor is the level of uncertainty in a number of factors that influence land values, including inflation. Sellers worry about how far and how quickly interest rates will rise. *********************************************************************************** Family Farms Still Driving Dairy Industry The U.S. dairy industry says the “decline of the family farm” and the “rise of the corporate farm” are not accurate descriptions of American agriculture. While the number of dairy farms declined, it has not at all diminished the dominance of family-run dairies. Smaller family farms often grow to accommodate additional family members coming into the operation. Of the estimated 39,442 farms of all sizes with dairy cows, USDA data says more than 38,200 were family-operated. That’s a total of 97 percent of dairies, a high number that’s not moving despite any consolidation. For example, the number of farms with dairy cattle was over 48,000 in 2016, but the family-farm percentage that year was 97.3, a remarkably consistent number. The average size of a U.S. dairy farm has grown from 50 cows in 1990 to about 300 today. Even though they’re larger, the family farm is still the bedrock of American dairy farming. *********************************************************************************** AFT Hires Soil and Climate Experts to Increase Impact Capacity American Farmland Trust expanded its national “Farmers Combat Climate Change Initiative” team. New team members include Dr. Bonnie Michelle McGill as Senior Climate and Soil Health Scientist and Dr. Rachel Seman-Varner as Senior Soil Health and Biochar Scientist. Through the work of its climate initiative, AFT commits to making U.S. agriculture climate-neutral or better by promoting the widespread adoption of regenerative farming practices that rebuild soil health, sequester carbon, and reduce emissions. McGill will lead climate solutions related to program modeling, data analysis, and other research efforts advancing climate-smart practice adoption and support advocacy and communications. Seman-Varner will advance the science and implementation of high-level regenerative soil health management systems and provide technical support for policy advocacy. She will also advance AFT’s leadership on how to integrate and improve biochar and other innovative natural climate solutions into soil health management systems. The two new additions say complex problems need multi-faceted solutions. *********************************************************************************** American Fruit Grower’s Survey Shows Serious Labor Concerns The American Fruit Growers held its annual State of the Industry survey. Labor was a big topic in the survey, and one-third of the respondents say it’s not an issue for them, at least not yet. Growing Produce says they typically have a stable team of employees, and in 20 percent of those cases, it includes family members. For the remaining two-thirds of the survey responders, available labor is a huge challenge. A California apple grower told Growing Produce, “In California, we’re limited to a 40-hour workweek. They’re also considering reducing it to four days a week and raising the minimum wage to $15.50 an hour.” A citrus grower from Florida says it’s “virtually impossible” to find excellent farm labor. Just two in 10 survey responders currently use the H-2A program that authorizes lawful admission into the U.S. for temporary, non-immigrant workers to do agricultural labor or provide seasonal services. *********************************************************************************** U.S. Soy Farmers to Help Battle Child Malnutrition Worldwide The U.S. Agency for International Development announced $1.3 billion in additional critical assistance to Ethiopia, Kenya, and Somalia. Those funds include $200 million for purchasing a product called Ready-to-Use-Therapeutic-Food. RUTF is an energy-dense medical food paste made of soy, peanuts, powdered milk, vegetable oil, sugar, and multivitamins. It’s one of the world’s most effective tools to help severely malnourished children. America is one of the world’s largest and most cost-efficient producers of RUTFs, but U.S. farmers have the capacity to do more. “U.S. soybean growers are proud of the role they play in global food security,” says American Soybean Association President Brad Doyle. “We welcome the opportunity to provide more protein to feed those in need around the world, and we’re thankful for the much-needed investments in RUTFs.” Last spring, the ASA asked Congress for $200 million in appropriations to purchase RUTFs and double the global supply to reach more malnourished children. *********************************************************************************** “Rock the Crop” Sweepstakes Deadline Approaching Firestone Ag is partnering with country music star Dillon Carmichael to celebrate U.S. agriculture with its second annual Rock the Crop Concert Sweepstakes. U.S. farmers and ranchers must enter by July 25 for a chance to win a private, on-farm concert with Dillon Carmichael or tickets to one of his upcoming concerts. Firestone Ag says it’s proud to champion hard-working family farmers, and eligible entrants must live and work in the contiguous U.S. and be at least 21 years old. “I’m thrilled to continue this partnership with Firestone and have such a unique opportunity to personally celebrate America’s farmers,” Carmichael says. “My latest album is all about small-town USA, which is common for country music and a testament to my upbringing and our many fans.” Matt Frank, Firestone’s marketing product manager, says the last few years have been very challenging for agriculture workers, so they’re excited to thank one lucky farmer or rancher.
| Rural Advocate News | Wednesday July 20, 2022 |
Wednesday Watch List Markets A report on U.S. existing home sales is set for 9 a.m. CDT, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m., a report which includes ethanol production. Traders will continue to keep a close watch on the latest weather forecast and any news regarding Ukraine. Weather A system moving through the Great Lakes is expected to fire off scattered thunderstorms along its cold front from Michigan to Kentucky Wednesday afternoon, some of which may be severe. More limited showers will be possible along the rest of the front from Tennessee back through Oklahoma. Some showers will also be found across the Southeast while most of the rest of the country is dry. Heat continues to be a major factor today, with high heat and humidity ahead of this from across the South into the Northeast.
| Rural Advocate News | Tuesday July 19, 2022 |
International Trade Commission Rejects Fertilizer Duties in Win for Farmers The U.S. International Trade Commission Monday ruled against imposing tariffs on nitrogen fertilizers imported from Russia and Trinidad and Tobago. The decision comes after CF Industries filed a petition with ITC in late 2021, requesting that the commission place tariffs on urea ammonium nitrate used in liquid fertilizers. Shortages and prices have since increased exponentially. National Corn Growers Association President Chris Edgington says, "This comes as a welcome relief," adding, "We have been sounding the alarms and telling the ITC commissioners that tariffs will drive up input prices to even more unaffordable levels for farmers." American Soybean Association President Brad Doyle says the ruling "will provide much-needed relief from tariffs for U.S. soybean growers and farmers across the country." Few inputs have exhibited more price inflation than UAN, which has experienced a high price increase due largely due to the Russia-Ukraine conflict. Last month, agriculture groups asked ITC to take into consideration that price pressure experienced by commodity farmers has cascading effects that reverberate through the farm economy. *********************************************************************************** Report: China Largest Global Funder of Agricultural R&D While public agricultural research and development funding in the United States has trended downward in recent decades, several other major trading partners have increased their funding. USDA’s Economic Research Service reported Monday that China leads the world in agricultural research and development funding. The European Union's expenditures have grown since 2000, as have the expenditures in India and Brazil. However, none experienced as rapid an increase as China, which became the largest funder of agricultural R&D after 2011, surpassing the European Union. By 2015, the last year for which the Economic Research Service has full data, China was spending more than $10 billion annually on agricultural R&D. That level of spending was roughly twice the U.S. expenditures in 2015 and nearly quintuple that of China's own R&D spending in 2000. With China as a major importer of U.S. agricultural goods and Brazil a competitor to the U.S. in the global corn and soybean markets, these developments could impact U.S. export competitiveness. *********************************************************************************** FAS Administrator Whitley Kicks Off Philippines Trade Mission Foreign Agricultural Service Administrator Daniel Whitley arrived in Manila Monday to launch a USDA trade mission. The trade mission seeks to foster stronger ties and build economic partnerships between the United States and the Philippines. Whitley is joined by representatives from 29 U.S. agribusinesses and farm organizations and ten state agriculture departments interested in exploring export opportunities in the Philippines. Whitley says, "I'm confident the next few days will produce mutually beneficial results to help expand trade, increase collaboration on key issues impacting agriculture in both our countries, and ultimately strengthen Philippine food security." This week, local staff from the FAS office in Manila will host business meetings between U.S. trade mission delegates and local companies seeking to import American food and farm products. The trade mission itinerary also includes three memoranda of understanding signing ceremonies, including one to launch a USDA-funded program to help combat African Swine Fever in the Philippines. *********************************************************************************** Vilsack to Address Western Governors’ Association Annual Conference Agriculture Secretary Tom Vilsack will travel to Idaho for a series of events next week, including addressing the Western Governors' Association Annual Conference. The events are related to the Biden administration efforts to build climate resilience and recover from the impact of wildfires. USDA says Vilsack will visit a U.S. Forest Service tree nursery in Boise, Idaho, on July 25, and announce USDA efforts on climate mitigation and significant investments in reforestation and wildfire risk reduction funded in part by President Biden's Bipartisan Infrastructure Law. On July 26, Vilsack will deliver a keynote address at the Western Governors' Association Annual Conference. In his address, he will speak about challenges facing western communities and how state and federal governments can partner to address these challenges. Before his keynote, Secretary Vilsack will participate in a press conference with the governors in attendance, where he will discuss Bipartisan Infrastructure Law programs that will help communities reduce risk and build resilience against wildfire. *********************************************************************************** Agriculture, Business Organizations Oppose Tax Increases The National Pork Producers Council last week joined 191 agriculture and business organizations voicing opposition to two key changes to the tax code that may become part of a budget reconciliation bill. Media reports suggest Senate lawmakers want for non-corporate taxpayers to expand the current 3.8 percent Net Investment Income Tax to all non-wage income and expand and extend the “excess business loss limitation.” Both provisions were included in the $1.6 trillion budget reconciliation package of mostly social welfare and environmental spending approved by the House last fall. For pass-through entities such as most pork operations, the increase would directly impact the bottom line, limiting deductions of excess business losses would reduce the ability of farm operations to recover from bad years, according to NPPC. In a letter last month, the groups wrote, “In the face of a possible recession, 40-year high inflation, unprecedented supply-chain challenges, and chronic labor shortages, raising taxes on small, individually, and family-owned businesses is the wrong approach and should be rejected.” *********************************************************************************** Overwhelming Interest in USDA Climate-Smart Commodities Opportunity The Department of Agriculture says the second funding pool through the Partnerships for Climate-Smart Commodities opportunity received over 600 applications from over 400 groups. While USDA is in the process of calculating the total requested amount for the second funding pool, the overall interest in the opportunity already exceeds more than $18 billion. Undersecretary for Farm Production and Conservation, Robert Bonnie, says, “The results of the second funding pool clearly demonstrate the strong demand in the U.S. agriculture and forestry industry for solutions that expand markets for American producers." The second funding pool, which closed on Friday, June 10, included proposals from $250,000 to $5 million that emphasize the enrollment of small and/or underserved producers, and/or monitoring, reporting and verification activities developed at minority-serving institutions. First-round proposals requested more than $18 billion and offered to match more than $8 billion in nonfederal dollars. The submissions are currently being reviewed, and selections are anticipated later this summer.
| Rural Advocate News | Tuesday July 19, 2022 |
Tuesday Watch List Markets A report on June U.S. housing starts will be out at 7:30 a.m. CDT and is the only significant report of the day. Traders will continue to keep watch over the latest weather forecasts and be on the lookout for an update on last week's meeting in Turkey regarding the passage of grain shipments out of Ukraine. Weather A system is skirting along the Canadian border Tuesday, bringing scattered showers and thunderstorms near the border and potential for some severe storms in Minnesota and Wisconsin. Stronger winds are developing on the backside of the system in the Northern Plains as well. But heat continues to be the big story of the week with high heat south of the influence of that system across the South. Soil moisture continues to decline in these areas.
| Rural Advocate News | Monday July 18, 2022 |
CoBank Report Details Current and Future Ag Economic Conditions A number of factors are sending up red flags about slowing economic activity and a potential oncoming recession. A CoBank report says inflation is the largest red flag, and the Fed is ready to raise rates until it believes inflation has been controlled. “Warehouse and inventory costs are still rising at near-peak levels, and transportation costs are rising at a much higher rate than before COVID-19,” says Dan Kowalski, vice president of CoBank’s Knowledge Exchange. “Grain rail car availability and prices were at multi-year lows and highs respectively, in the second quarter.” Shifting economic sentiments have brought ag and energy commodity prices down from their peaks. Grain prices in the second quarter remained volatile, but grain and oilseed prices should push higher because of tight global commodity supplies, especially wheat and soybeans. There are challenges ahead because of dry July weather, and Asian-made crop protection chemicals will continue in short supply. *********************************************************************************** NMPF Supports the “Formula Act,” Wants Production Boost The National Milk Producers Federation supports bipartisan House legislation that will encourage additional infant formula supply imports to temporarily ease short-term shortfalls in supplies. However, the organization says boosting longer-term domestic production to ensure safe and secure infant supplies in the future is necessary. The “Formula Act” in the House would waive U.S. tariffs on infant formula imports through the end of this year to ensure that the domestic market has the needed formula supplies. The tariff reduction would help the U.S. domestic market recover from an acute processing capacity crisis that created the national shortage of infant formula. “The U.S. has experienced a highly unusual shortage of infant formula for much of this year,” says Jim Mulhern, president and CEO of NMPF. “It’s a crisis that’s dragged on way too long but appears to be improving.” The legislation will address short-term challenges while not creating a permanent dependence on foreign supplies. *********************************************************************************** NCGA Corn Congress Meeting Addresses Crop Input Costs, Availability U.S. farmers are working to help feed the world and fill a void in food production left by the war in Ukraine. Corn grower leaders unanimously passed a measure calling on the White House to maintain grower access to inputs. The measure says the “ability to address the crises facing our world today in a sustainable manner cannot be achieved without fair access to the inputs necessary to raise a crop each year, including pesticides, fertilizer, and biotech seeds.” The unanimous vote comes after the Environmental Protection Agency revised its atrazine registration, a move that could limit access to a critical crop protection tool which has been tested and proven safe for use. The move also comes after the Supreme Court recently refused to hear a case from California regarding glyphosate, which leaves a ruling in place that says glyphosate causes cancer. Farmers worry about a state-by-state patchwork of regulations in the future. *********************************************************************************** “Flash Drought” Emerging in Central, Eastern U.S. While the western U.S. sees water getting scarcer every day, extremely dry conditions are getting worse in central and eastern states. The U.S. Drought Monitor says a “flash drought” has developed in parts of the South and Northeast, including Texas, Oklahoma, and Missouri. CNN says a flash drought is caused by the rapid intensification of a drought due to a combination of unusually high temperatures, sunshine, and wind. The National Oceanic and Atmospheric Administration says flash drought can cause extensive damage to agriculture, economies, and ecosystems. Extreme heat has covered the Southern Plains for a couple of weeks, and more is in the forecast. That’s made the ongoing drought much worse. Roughly 94 percent of Texas was in some form of drought last week, the largest area since 2013, and over 21 percent of the state is in exceptional drought. Oklahoma is also experiencing its hottest summer in several years. *********************************************************************************** Removing Barriers to Meet Growing Demand for Food The American Farm Bureau is calling on USDA to take steps to make sure American farmers continue to have access to crucial fertilizer supplies. The organization submitted comments on USDA’s “Request for Information on Access to Fertilizer.” AFBF says many factors are combining to create shortages and drive up fertilizer costs. “America’s farmers are getting called on to feed both America’s families and families overseas as war and shortages take their toll on international neighbors,” says AFBF President Zippy Duvall. “We need long-term solutions.” The organization’s recommendations include assistance for farmers to expand on-site farm fertilizer storage capacity to help them manage costs year-round. They want the EPA to reform its review processes that create barriers to domestic fertilizer production. AFB also wants modernized weight restrictions for trucks to help reduce the number that’s needed to transport goods and to enact rail reforms to help promote competition, fairer rates, and reliable service. *********************************************************************************** Grain Exports Keeping Pace with Prior Marketing Year U.S. grain exports in-all-forms totaled 96 million metric tons during the first nine months of the current marketing year. The exports to 145 countries are just under the total at the same point in the previous marketing year. Increased grain exports to Mexico, Canada, and Colombia helped to offset year-to-date losses in China and Japan. Those five markets account for almost 70 percent of the grains-in-all-forms commodity exports. “These five markets are very important to overall grain-in-all-forms exports,” says U.S. Grains Council Vice President Cary Sifferath. “Strong exports of corn, DDGS, and ethanol mean Canada is now the third-largest market after Mexico and China.” Mexico surpassed China month-over-month to become the top market for U.S. grains-in-all-forms exports totaling 21 million metric tons during the first nine months of the 2022-2023 marketing year. China is the second largest GIAF export market, with exports of 20 million metric tons during the same period.
| Rural Advocate News | Monday July 18, 2022 |
Monday Watch List Markets Back from the weekend, traders will check the latest forecasts and news, including wanting to know if Ukraine and Russia can agree to allow exports out of Ukraine. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by USDA's monthly Livestock, Dairy and Poultry outlook at 1 p.m. and Crop Progress report at 3 p.m. Weather A disturbance from the weekend continues to produce some showers from the Delta into the Northeast on Monday with some limited heavy rain potential in these areas. A strong disturbance is moving along the U.S.-Canada border as well and is already starting to spark severe thunderstorms in northern Montana. Areas on both sides of the border will see widespread precipitation but also severe weather today into tomorrow. Heavy rain in the Canadian Prairies will help to ease or eliminate drought for the remaining areas of southern Alberta and southwest Saskatchewan. Heat will take over where showers do not, especially in the Plains, sapping soil moisture and causing stress to crops and livestock.
| Rural Advocate News | Friday July 15, 2022 |
U.S.-Kenya Strategic Trade and Investment Partnership Launches U.S. trade Representative Katherine Tai Thursday announced the launch of the United States-Kenya Strategic Trade and Investment Partnership. Tai met virtually with representatives from Kenya, and they identified initial issues where the United States and Kenya will develop an ambitious roadmap for enhanced cooperation. The United States and Kenya will consider measures to facilitate agricultural trade and enhance transparency and understanding of the application of science- and risk-based Sanitary and Phytosanitary measures. The two sides share an interest in fostering sustainable agricultural practices, as well as creating an enabling environment for innovative agricultural technologies that would help achieve food security goals, increase farm productivity, and improve farmer livelihoods, while addressing climate change concerns. Meanwhile, USTR and the European Union held the fifth meeting of the Joint Committee established under the U.S.-EU Agreement on Prudential Measures Regarding Insurance and Reinsurance. Both sides acknowledged progress made toward full implementation of the Agreement. *********************************************************************************** House Ag Chair Announces Bill to Support Small Cattle Farmers House Agriculture Chairman David Scott announced the intention to introduce a bill to help small family farmers and ranchers and address the national crisis in our nation’s beef supply chain. Scott says, “What has been missing from the conversation is help for the very beginning of our food supply chain, which is our nation’s small family farmers and ranchers.” The bill creates a new program that strengthens the federal safety net and makes insurance products work better for small cattle farmers and ranchers, both in terms of coverage and accessibility. The second pillar establishes a grant program at USDA to help small farmers and ranchers and producer-owned cooperatives to undertake innovative business initiatives. By developing more direct-to-consumer and direct-to-institution markets, the legislation will give small farmers and ranchers more control over where they sell their cattle or meat products and provide them with opportunities to add value to their products and increase their profitability, according to Scott. *********************************************************************************** Republican Lawmakers Demand Biden Relax Import Duties on Fertilizer Republican lawmakers demand the Biden administration waive import duties on fertilizer from Morocco and Trinidad and Tobago. The Biden administration has placed duties on fertilizer imports of phosphate fertilizer products from Morocco and is working on new duties on urea ammonium nitrate fertilizer from Trinidad and Tobago. Led by Senator Roger Marshall and Representative Tracey Mann of Kansas, a group of Republicans made the demand in a letter to President Biden. The letter states, “The bottom line is that fertilizer is critical to national security and national defense.” In June, President Biden, using his emergency authority, issued a proclamation titled “Declaration of Emergency and Authorization for Temporary Extensions of Time and Duty-Free Importation of Solar Cells and Modules from Southeast Asia.” The decision waived countervailing duties and anti-dumping duties for solar panels. President Biden’s emergency justifications for this proclamation are also applicable to fertilizer, according to the letter, which directly impacts food prices more than any emergency concerning solar panels. *********************************************************************************** Ag Lawmakers Call on EPA to Cease Politicization of Crop Protection Tools The top Republicans on the House and Senate Agriculture Committees call on the Environmental Protection Agency to "cease politicization of crop protection tools. Representative Glenn "GT" Thompson of Pennsylvania and Senator John Boozman of Arkansas penned a letter to the EPA this week “about the concerning trend of disregarding scientifically-sound, risk-based regulatory processes, and unilaterally denying access to a range of crop protection tools.” Russia’s war in Ukraine has sent shockwaves through the global food system resulting in increased energy prices, fertilizer cost spikes and shortages, and worsening food shortages in developing countries. As the world faces an emerging food crisis due to this conflict, the lawmakers say, “our policies should be focused on supporting American production instead of creating further burden and ambiguity for our farmers and ranchers.” The letter follows a previous effort last year calling on the EPA to rescind its decision to revoke all food tolerances for chlorpyrifos and ensure future actions related to crop protection tools are consistent with the science-based, regulatory process. *********************************************************************************** AEF Announces Agriculture Interoperability Network Project Team The Agricultural Industry Electronics Foundation Thursday announced the formation of a project team to develop the new Agriculture Interoperability Network. The team will be creating guidelines for data formats to simplify data sharing for end users, growers and operators. The project team is made up of approximately 60 participants from various AEF member companies from different corners of the globe. AEF members will be able to use the network to make sure their data flows through this whole network. AEF Vice Chairman Andrew Olliver says, “The ability to manage the farm more effectively revolves around the ease of getting all of the data into the best location for reporting and analysis, and to derive insights for future operations.” The network will be a concerted and non-discriminatory governed network that streamlines peer–to-peer interfaces between platforms. Agricultural Industry Electronics Foundation is scheduled to introduce the network in November 2023. *********************************************************************************** Grassley Receives President’s Award from National Corn Growers Association The National Corn Growers Association awarded Senator Chuck Grassley the organization' President Award for his leadership and commitment to advocating for corn growers and agriculture. The President's Award is the most prestigious recognition by NCGA and was presented to Grassley during NCGA's Corn Congress events in Washington, D.C. The Iowa Republican says, “I am honored and humbled to receive this lifetime achievement award.” Grassley, one of only two farmers in the Senate, is a member of the Iowa Corn Growers Association. NCGA President Chris Edgington of Iowa adds, “we would not have secured the policy successes we have over the years were it not for the contributions of the senior senator from Iowa.” Grassley serves on several committees, including the Senate Agricultural Committee. A lifelong Iowan, Grassley was first elected to the U.S. Senate in 1980. NCGA’s President’s Award is given annually to a leader who has worked to advance issues important to corn growers and agriculture.
| Rural Advocate News | Friday July 15, 2022 |
Friday Watch List Markets A report on U.S. retail sales in June is due out at 7:30 a.m. CDT, followed by the Federal Reserve's report on U.S. industrial production at 8:15 a.m. and the University of Michigan's index of U.S. consumer sentiment at 9 a.m. Traders will continue to split attention between the latest weather forecasts and the larger economic news with a view toward the next Fed meeting near the end of this month. Weather A weak disturbance moving through the Midwest is causing showers Friday. The scattered showers are bringing light to moderate amounts, but not everywhere is going to get hit and showers will die out as they move through the eastern sections of the Midwest tonight. Scattered showers will continue in the Southeast again today. Heat will continue where showers do not occur, causing stress for pollinating corn and worsening or expanding drought in the Plains.
| Rural Advocate News | Thursday July 14, 2022 |
Thursday Watch List Markets After reporting a 9.1% gain in annual consumer prices in June, the U.S. Labor Department will report on producer prices at 7:30 a.m. CDT, Thursday -- the same time USDA's weekly export sales report, weekly U.S. jobless claims and an update of the U.S. Drought Monitor are all released. The U.S. Energy Department reports on natural gas in storage at 9:30 a.m. Traders will continue to watch split screens, juggling attention between the latest weather forecasts and happenings in outside markets. Weather Heat is spreading from the West into more of the Plains Thursday as a ridge is starting to take over North America. The increased heat will lead to some showers and thunderstorms in the Northern Plains and Canadian Prairies today that could be severe. Old fronts across the Southeast will continue daily showers and thunderstorms in that region as well.
| Rural Advocate News | Thursday July 14, 2022 |
Consumer Price Index Increases The Consumer Price Index for All Urban Consumers increased 1.3 percent in June on a seasonally adjusted basis after rising 1.0 percent in May. Over the last 12 months, the all-items index increased 9.1 percent before seasonal adjustment. The U.S. Bureau of Labor Statistics reports the increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors. The all-items index increased 9.1 percent for the 12 months ending June, the largest 12-month increase since the period ending November 1981. The food index increased 1.0 percent in June, following a 1.2-percent increase in May. The index for food at home also rose 1.0 percent in June, the sixth consecutive increase of at least 1.0 percent in that index. Five of the six major grocery store food group indexes rose in June. The index for other food at home rose 1.8 percent, with sharp increases in the indexes for butter and for sugar and sweets. *********************************************************************************** USDA Invests $14M to Support Agricultural Workforce Training for Underserved Communities The Department of Agriculture Wednesday announced more than $14 billion in agricultural workforce training for underserved communities. USDA says the funding will increase the resilience of the U.S. meat and poultry processing sector. The investment is part of the American Rescue Plan to strengthen the nation’s food supply chain by promoting fair and competitive agricultural markets. Funding is available through the USDA National Institute of Food and Agriculture’s Request for Applications process to eligible universities. Eligible applicants include qualified Centers of Excellence at 1890 Land-grant Universities, 1994 Land-grant Tribal Colleges, Hispanic-serving institutions, Alaska Native and Native Hawaiian institutions, and participants in the Resident Instruction Grants Program for Institutions of Higher Education in Insular Areas. Dr. Chavonda Jacobs-Young, USDA undersecretary for research, education and economics, who also serves as USDA’s chief scientist, says, “These investments provide critical support to our higher education partners to increase rural prosperity and economic sustainability of food systems in underserved agricultural communities.” *********************************************************************************** FAS Administrator Whitley to Lead Philippines Trade Mission Foreign Agricultural Service Administrator Daniel Whitley will lead a delegation of representatives from 29 U.S. agribusinesses and farm organizations to Manila, Philippines, July 18-21. The delegation is part of a Department of Agriculture-sponsored trade mission. The Philippines is the eighth-largest market for U.S. agricultural exports, averaging $3.1 billion annually during the last five years. Whitley says, “The Philippines is an excellent market for U.S. farm and food products, and we look forward to introducing a diverse group of companies and organizations to new export opportunities there.” Participants will engage directly with potential buyers, receive in-depth market briefs from FAS and industry trade experts, and participate in site visits. Whitley will be joined by Minnesota Department of Agriculture Commissioner Thom Petersen, Nebraska Department of Agriculture Director Steve Wellman, South Dakota Department of Agriculture and Natural Resources Secretary Hunter Roberts and Virginia Secretary of Agriculture and Forestry Matthew Lohr, among others. *********************************************************************************** DeLauro, Durbin Introduce Food Safety Administration Act Two Democrats Wednesday Introduced the Food Safety Administration Act to establish the Food Safety Administration. The administration would be a single food safety agency responsible for keeping the food safe for market. Connecticut Representative Rosa DeLauro introduced the legislation with Senator Dick Durbin of Illinois. The Food Safety Administration Act would establish the Food Safety Administration under the Department of Health and Human Services by incorporating the existing food programs within the Food and Drug Administration into a separate agency: the Center for Food Safety and Applied Nutrition, Center for Veterinary Medicine, and the Office of Regulatory Affairs. Representative DeLauro says, "Look no further than the recent infant formula crisis to understand the need to create a single food safety agency, led by a food policy expert, to ensure the safety of products that go to market." The legislation is endorsed by the Center for Food Safety, Consumer Reports, Environmental Working Group, Friends of the Earth and others. *********************************************************************************** Clean Fuels Highlights Job Creation and Economic Benefits in Letter to President Biden Clean Fuels Alliance America wrote to President Joe Biden Wednesday and other administration officials to highlight the biodiesel and renewable diesel industry’s contribution to job growth. The letter asks the administration to support tax policy that encourages continued investments, capacity expansion, and additional job creation. The letter states, “The clean fuels industry increased production during 2021, making an essential contribution to the nation’s fuel supply,” adding, “Our industry plans to continue increasing production this year.” The recent United States Energy and Employment Report 2022 shows that the clean fuels industry added jobs in 2021 at a rate of 6.7 percent and anticipates continued job growth of 5.8 percent in manufacturing during 2022. Additionally, a recent study from the World Agricultural Economic and Environmental Service showing that U.S. biodiesel and renewable diesel production generated a four percent decrease in the price of diesel fuel in 2021 – a saving of $0.22 a gallon at current fuel prices. *********************************************************************************** U.S. Fruit and Vegetable Import Value Outpaces Volume Growth In fiscal year 2021, the value of U.S. fruit and vegetable imports rose to a record level. That record is projected to rise another nine percent in FY 2022, October–September, to $42.6 billion, according to USDA’s Economic Research Service. Import volumes are also expected to grow three percent in 2022 to 29.4 million metric tons. This would further extend the trend seen from 2000 to 2021, during which the volume of U.S. fruit and vegetable imports increased 124 percent while the inflation-adjusted value of those imports increased 208 percent. The shift indicates that, on a per volume basis, imported fruits and vegetable products are priced higher than they were 20 years ago as growth in the value of these imports has exceeded growth in volume. Steadily increasing unit prices for imported fresh fruits and vegetables, up from $753 per metric ton in 2000 to $1,192 in 2021, have contributed significantly to the observed trend.
| Rural Advocate News | Wednesday July 13, 2022 |
USDA Expands Crop Insurance for Double Crop Systems The Department of Agriculture Tuesday announced an expansion of crop insurance availability for double-crop practices. To reduce the risk of raising two crops on the same land in one year – a practice known as double cropping - USDA's Risk Management Agency is expanding double-crop insurance opportunities in over 1,500 counties where double cropping is viable. Agriculture Secretary Tom Vilsack joined President Joe Biden at an Illinois farm in May to announce a series of actions to help farmers. Vilsack says, “Today, USDA is making good on one of those commitments and making it easier to plant double crops and sharing some of the financial risk.” For soybeans, double-crop coverage will be expanded to or streamlined in at least 681 counties. For grain sorghum, double-crop coverage will be expanded to or streamlined in at least 870 counties. The coverage expansion was guided by extensive outreach to nearly 70 grower groups covering 28 states. *********************************************************************************** USDA Releases July WASDE Report USDA released the July World Agriculture Supply and Demand report Tuesday. This month’s 2022/23 U.S. corn outlook calls for larger supplies and higher ending stocks. Corn beginning stocks were raised 25 million bushels, based on reduced feed and residual use for 2021/22 as indicated in the June 30 Grain Stocks report. The season-average farm price received by producers was lowered 10 cents to $6.65 per bushel. Oilseed production for 2022/23 is projected at 132.7 million tons, down 3.9 million from last month. Soybean production is projected at 4.5 billion bushels, down 135 million on lower harvested area. Harvested area, forecast at 87.5 million acres in the June 30 Acreage report, is down 2.6 million from last month. The season-average soybean price is forecasted at $14.40 per bushel, down $0.30 from last month. The outlook for 2022/23 U.S. wheat this month forecasts larger supplies, domestic use, exports, and ending stocks. The projected season-average price declined $0.25 per bushel to $10.50. *********************************************************************************** USDA Accepts More than 3.1 Million Acres in Grassland CRP Signup The Department of Agriculture is accepting offers for more than 3.1 million through this year's Conservation Reserve Program Grassland Signup, the highest in history. The program allows producers and landowners to continue grazing and haying practices while protecting grasslands and promoting plant and animal biodiversity and conservation. Agriculture Secretary Tom Vilsack says, "This year's record-breaking Grassland CRP signup demonstrates the continued success and value of investments in voluntary, producer-led, working lands conservation programs." Nationwide, this year's Grassland CRP signup surpassed last year's 2.5 million acres by 22 percent. So far this year, producers have enrolled two million acres through the General Signup, and more than 464,000 acres have been submitted through the Continuous CRP Signup. This means about 5.6 million acres are entering CRP in 2023, surpassing the 3.9 million acres expiring this year. Producers can still make an offer to participate in CRP through the Continuous CRP Signup by contacting the FSA at their local USDA Service Center. *********************************************************************************** House Ag Committee Leaders Launch Online Farm Bill Feedback Form Leadership of the House Agriculture Committee this week announced an online form to gather farmer feedback for consideration in the next farm bill. House Agriculture Committee Chairman David Scott and Ranking Member Glenn "GT" Thompson announced the form for farmers and ranchers to submit their feedback and ideas for the 2023 Farm Bill. Chairman Scott says, “This is a chance to hear directly from farmers, ranchers and foresters across the nation.” Ranking Member Thompson adds, “Hearing directly from farm country about what’s working and what’s not is the only way to ensure we craft a bill that meets the needs of rural America.” In addition to the feedback gathered online, the House Agriculture Committee will continue to conduct hearings in Washington, DC and hold listening sessions across the country to gather input as we prepare for the 2023 Farm Bill. The online form is available on the House Ag Committee website. *********************************************************************************** Meat Industry Leaders Strengthen Collaboration on Food Security The North American Meat Institute's Executive Board voted unanimously late Friday to designate food security as a non-competitive issue. Announces Tuesday, the action, according to the organization, strengthens industry-wide efforts to end hunger and ensure families in need have access to nutrient-dense meat. NAMI President and CEO Julie Anna Potts says, "Declaring food security a non-competitive issue will allow the Meat Institute and its members to freely share best practices." Potts says the action is especially important as the industry prepares to support the September 2022 White House Conference on Hunger, Nutrition and Health. Through the Protein PACT for the People, Animals and Climate of tomorrow, the Meat Institute has committed to fill the protein gap by 2025. The Meat Institute has also established a Food Security Committee to bring members together to facilitate discussion, information-sharing, and problem-solving related to charitable giving, hunger relief and food security. *********************************************************************************** U.S. Residents Consumed Less Ice Cream in 2020 than in 2000 U.S. residents are scooping less of their favorite frozen treats than two decades ago. USDA’s Economic Research Service Tuesday reported that in 2020, the United States consumed about 21 pounds per person of frozen dairy products—about five pounds per capita less than in 2000. Consumption of regular ice cream in 2020 was estimated at 12.7 pounds per person, a decrease of about 3.4 pounds from 2000. At 6.9 pounds, per capita consumption of low-fat and nonfat ice cream was about the same in 2020 as in 2000. Consumption of other frozen dairy products, which include frozen yogurt, sherbet, and other frozen dairy products, decreased from 3.4 pounds to 1.6 pounds per person in the same period. This trend in frozen dairy products is in line with a decline in consumption of total caloric sweeteners per capita from 149.0 pounds in 2000 to 122.5 pounds per capita in 2020, reflecting shifting preferences among consumers.
| Rural Advocate News | Wednesday July 13, 2022 |
Wednesday Watch List Markets The U.S. Labor Department will release its consumer price index for June at 7:30 a.m. CDT, a big concern for investors with ramifications for Fed policy. At 9:30 a.m., the Energy Department will have its weekly report of energy inventories, including ethanol production. At 1 p.m., the Fed's Beige Book be scoured for any clues about interest rates, the same time the U.S. Treasury reports on the federal budget for June. Weather A cold front moving into the Southeast will combine with an old one left over from the weekend to produce widespread showers and thunderstorms on Wednesday. Most of the rest of the country will be quiet, though a front will start to move through the Canadian Prairies and Montana later in the day which will be the focus for thunderstorm development as well. Heat in the West and around Texas will continue for another day.
| Rural Advocate News | Tuesday July 12, 2022 |
May Beef Exports Set New Records, Pork Exports Rise U.S. beef exports set new volume and value records in May, topping $1 billion for the fourth time in 2022. The exports reached just over 135,000 metric tons, up one percent from the previous high in May 2021. Export value climbed 20 percent to $1.09 billion, breaking the March 2022 record. For January through May, beef exports were four percent higher than last year at 613,200 metric tons, valued at $5.14 billion. “Keeping the $1 billion-a-month pace is remarkable, especially given the economic challenges like a stronger dollar and the logistical challenges of the supply chain,” says U.S. Meat Export Federation president and CEO Dan Halstrom. May pork exports were the strongest in volume and value so far during 2022. May pork exports were 224,600 metric tons, down 21 percent from the large total last year. However, that was the highest monthly volume since November. Export value was $665 million, also the highest since November. *********************************************************************************** Gas Prices See Biggest One-Day Drop Since 2008 Gas prices dropped last week by the largest one-day amount in over ten years. Auto club Triple-A says the average prices at U.S. pumps fell 3.1 cents per gallon on Friday, the largest one-time decrease since 2008. Despite the recent drop in gas prices, they’re still roughly $1.60 higher than last year. Ten states still have prices over $5 a gallon, and California is above $6 a gallon. Late last week, Bloomberg said supplies remain tight for fuel. U.S. total gasoline stocks are at their lowest seasonal level in seven years, even though refiners on the Gulf Coast and East Coast have been running at almost maximum capacity. East Coast supplies are particularly vulnerable, and they’re at the lowest seasonal level on record since the government started collecting data in 1993. Gas prices are a major contributor to inflation and will be a significant issue in the upcoming U.S. elections. *********************************************************************************** Farm Family Living Expenses A study by the Kansas Farm Management Association shows that farm family living expenses jumped 14 percent higher last year to an average of $82,000. It’s significantly higher than the previous high of $74,000 in 2014 and the largest yearly change since 2000. Agricultural Economic Insights says tight farm margins starting in 2014 made farmers tighten their belts, and overall, producers benefited from an economy that had extremely low inflation rates through the 2010s. The rising costs in 2021 could be attributed to broad inflation in the economy, as well as profitable conditions in farming. At least some of the 14 percent increase could be seen as a recovery after the three percent contraction in family living expenses in 2020. AEI says the combination of inflationary price pressure and an improved farm economy resulted in significantly higher living expenses for farms, and many farmers will need to update their projections for 2022 and beyond. *********************************************************************************** Poultry Executives Not Guilty of Price-Fixing Five executives in the poultry industry were found not guilty of a price-fixing conspiracy between 2012 and 2019. The Denver Post says the verdict is a defeat for prosecutors and happened after two mistrials. Jurors acquitted the current and former CEOs of Pilgrim’s Pride, a former Pilgrim’s Pride vice president, and the president and vice president of Claxton Poultry. Criminal trials of industry executives are unusual. The three trials happened as rising meat prices added fuel to soaring inflation. The Department of Justice hoped to succeed in the third trial by narrowing the defendants in previous cases from 10 to five in the third attempt. “Although we are disappointed in the verdict, we will continue to vigorously enforce the antitrust laws, especially when it comes to price-fixing schemes affecting food,” the DOJ says in a statement. A lawyer for one of the defendants says the case “should never have been brought.” *********************************************************************************** Safeguarding Midwest Lands That Grow Food Smart growth and investment in Midwest downtowns and main streets have to occur now to secure the land that grows our food. That conclusion is from American Farmland Trust, which released a report called “Farms Under Threat 2040: Choosing an Abundant Future.” The report’s research shows that by 2040, more than three million acres, or nearly 5,000 square miles of farmland, may be lost to urban and low-density conversion across the Midwest. Six Midwestern states made the top ten list of the number of farmland acres getting converted to urban development by 2040. Those states include Illinois, Iowa, Ohio, Indiana, Wisconsin, and Minnesota. The report shows the loss will disproportionately affect smaller farms that often service local markets with fresh products. Many of those smaller farms also tend to bring new farmers into the profession and are instrumental in getting through the supply chain disruptions hitting grocery stores around the nation. *********************************************************************************** USDA Helping Issue Child Food Benefits for Summer The USDA is partnering with states and territories across the country to work with urgency to provide food benefits for the summer months to eligible children. As of July 8, 27 states and territories, including Puerto Rico, are set up to provide these benefits to an estimated 13 million children. “For far too long, millions of families have struggled to keep their kids fed and healthy during the summer while schools are out,” says Cindy Long, administrator of the USDA’s Food and Nutrition Service. “Child food benefits can bridge the gap and help families provide the nourishment their children deserve. They can also help American families cope with the rising cost of food.” Children are eligible for this temporary nutrition benefit called P-EBT if they get free or reduced-price meals during the school year. Children six and under are also eligible if they live in a household receiving SNAP benefits.
| Rural Advocate News | Tuesday July 12, 2022 |
Tuesday Watch List Markets Traders will be watching the latest weather forecasts, but will likely be cautious ahead of USDA's WASDE and Crop Production reports, both due out at 11 a.m. CDT. Outside markets also remain a concern after the September U.S. dollar index hit a new high Monday. Weather A cold front is sagging through the Central Plains and pushing through the East Coast on Tuesday. Some showers and thunderstorms will be possible with that feature. An old front remains active near the Gulf Coast as well with additional showers and thunderstorms there. Both fronts will make for a more active day south of the Ohio River. South of the first front, temperatures will continue to be hot across Texas and the adjoining states.
| Rural Advocate News | Monday July 11, 2022 |
One Hundred Groups Call for Swift Confirmation of New Chief Ag Negotiator A coalition of almost 100 American food and agriculture organizations called for the prompt confirmation of Doug McKalip as the Chief Agriculture Negotiator in the U.S. Trade Representative’s Office. In the letter to the U.S. Senate’s Finance Committee, the groups highlighted McKalip’s deep knowledge of the food and agriculture industry and his institutional, regulatory, and trade experience. The groups also note that McKalip has the experience necessary to tackle some of the most pressing trade policy issues the industry is facing. “Doug McKalip is an excellent nominee for the critical role of Chief Agricultural Negotiator, especially as the U.S. needs to increase global trade and secure greater market access for U.S. products,” says John Bode, President and CEO of the Corn Refiners Association. The group of associations that sent the letter endorsing McKalip includes much of the food and agricultural sector that’s responsible for about one-fifth of the country’s economic activity. *********************************************************************************** World Food Prices Fall in June World food prices fell for a third straight month in June. However, the United Nation’s food agency says those prices are close to record levels set in March. The Food and Agriculture Organization’s food price index tracks the most globally-traded food commodities, and the index averaged 154.2 in June. That’s down from 157.9 in May. Despite the drop, the June index was over 23 percent higher than at the same time last year. The FAO’s Chief Economist says the factors that drove global prices higher in the first place are still in play. In the cereal supply and demand estimates, the FAO raised its global production estimate to 2.79 billion tons, still six percent lower than in 2021. The cereal index dropped 4.1 percent from May but was still almost 28 percent higher than last year. The vegetable oil price index fell 7.6 percent while the meat index rose 1.7 percent. *********************************************************************************** NCBA to Announce Environmental Stewardship Winner on July 26 The 2021 national winner of the Environmental Stewardship Program will be announced during the Cattle Industry Summer Business Meeting in Reno, Nevada, July 25-27. The award was established by the National Cattlemen’s Beef Association in 1991. It identifies outstanding land stewards in the cattle industry. Every year, seven families are recognized with regional Environmental Stewardship awards, with one getting honored as the national winner. “Cattle producers across the country work tirelessly to conserve natural resources for future generations,” says NCBA President Don Schiefelbein. “I’m glad we can honor the nation’s top cattle operators for their environmental conservation efforts.” The most recent winner was Beatty Canyon Ranch of Colorado in 2020. The Environmental Stewardship Award Program is sponsored by companies and federal agencies that share the cattle industry’s commitment to caring for the environment and protecting natural resources. Sponsors include Corteva, the USDA’s Natural Resources Conservation Service, McDonald’s, and the U.S. Fish and Wildlife Service. *********************************************************************************** Dairy Industry Speaks Out at Farm Bill Listening Session Dairy producers from several National Milk Producers Federation cooperatives urged Congress to create greater opportunities as they write the next farm bill. The dairy farmers are looking for opportunities to promote environmental stewardship, promote exports, and want Congress to craft farm bill programs that aid dairy farmers of all sizes in all regions. Melvin Medeiros of Laton, California, and Joey Fernandes of Tulare, California, spoke during a listening session held by California Representative Jim Costa. “From water issues, to trade, to sustainability, to providing an adequate safety net for producers of all sizes, the farmers who own our member cooperatives are critical to conversations that affect all of agriculture in the next farm bill and beyond,” says NMPF President and CEO Jim Mulhern. “We commend our California dairy farmers for sharing their insights and thank Representative Costa for making sure that dairy’s voice gets heard as the next farm bill begins taking shape.” *********************************************************************************** Smithfield Settles Price-Fixing Lawsuit for $42 Million Smithfield Foods will pay $42 million to settle a lawsuit that accused the meatpacker of conspiring to fix pork prices. CBS News says lawyers began notifying companies like restaurants and caterers of the settlement. Smithfield previously settled with a different group of pork buyers for $83 million. Meatpacker JBS agreed to pay the restaurants and caterers an additional $12.75 million in the same pork lawsuit. Earlier this year, JBS had already agreed to pay $52.5 million to settle a similar price-fixing lawsuit over beef. Neither Smithfield nor JBS admitted to any wrongdoing as part of those settlements, and officials at Smithfield headquarters wouldn’t comment on the settlement. Other price-fixing lawsuits have also been filed against national chicken producers, with almost $200 million in settlements already approved in price-fixing cases to date. Pilgrim’s Pride, one of the country’s biggest chicken producers, was fined $107 million for price fixing in February 2021. *********************************************************************************** U.S. Ag Groups Note Passing of Former Japanese Prime Minister Japan’s longest-serving leader and former prime minister, Shinzo Abe (AH-bay), died after being shot at a political campaign event last week. The U.S. Grains Council commented on his passing as a great loss for the country. “Prime Minister Abe was a leader in many ways, including growing trade between the U.S. and Japan,” says USGC President and CEO Ryan LeGrand. ‘He continued the long, close friendship between the U.S. and Japan that goes back even farther than the first office we opened in Japan in 1961.” U.S. Meat Export Federation President and CEO Dan Halstrom says his organization is deeply saddened by the death of Abe. “In addition to being a strong and reliable ally of the U.S., he was a true champion for free trade,” Halstrom says, “especially his leadership in advancing the U.S.-Japan agreement, which was a major victory for American agriculture.” Halstrom also called Abe “courageous and relentless.”
| Rural Advocate News | Monday July 11, 2022 |
Monday Watch List Markets Back from the weekend, there will be plenty of attention on the latest weather forecasts as more of the corn crop reaches or nears pollination stage. Outside market news also continues to make investors nervous and will be monitored. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Traders may be a little cautious ahead of Tuesday's WASDE and Crop Production reports. Weather A cold front that went through the Northern Plains over the weekend will continue to push through the northern tier of the country on Monday. The front will produce scattered showers and thunderstorms, some of which may be strong to severe. Heat will continue south of the front in the Plains, putting stress on drier areas but allowing good conditions for winter wheat harvest. The Southeast will continue to see more scattered showers and thunderstorms due to an old front.
| Rural Advocate News | Friday July 8, 2022 |
USDA Highlights Importance of Innovation at G20 Meeting The U.S. Department of Agriculture underscored the importance of agricultural research and development at the G20 Meeting of Agricultural Chief Scientists this week. Research and development is critical in tackling the challenges of global food security and climate change, according to USDA, which called on G20 members to support the Agriculture Innovation Mission for Climate. USDA’s Chief Scientist, Dr. Chavonda Jacobs-Young, led the U.S. delegation to the meeting, where agricultural science leaders from around the world convened to discuss global challenges facing agriculture and to align both national and global research and development priorities. Jacobs-Young says, “Ambitious investment in climate-smart agriculture and food systems innovation will help create a surge of solutions.” Jacobs-Young also highlighted the United States’ leadership role in the global Coalition for Sustainable Productivity Growth, as well as the United States continued focus on innovative technologies and approaches to reduce food loss and waste in the agricultural supply chain. *********************************************************************************** Drought Conditions Found in Much of the U.S. The latest Drought Monitor shows much of the U.S. is dealing with dry conditions. All but 16 percent of the West region is in some form of drought, with 28 percent considered D3-D4, the worst drought classifications. Another 16 percent of the South region is drought-free, with 23 percent in D3-D4. Meanwhile, 67 percent of the High Plains region faces drought conditions, along with 50 percent of the Midwest region. Finally, 63 percent of the Southeast region is in drought, along with 36 percent of the Northeast region. Short-term drought continued to rapidly expand across the Ohio, Tennessee, and Middle Mississippi Valleys along with parts of the Corn Belt in the last week. Thunderstorms brought locally heavy rainfall and drought relief to parts of the central to northern Great Plains. However, temperatures averaged above normal throughout the Great Plains. A tropical disturbance in the western Gulf of Mexico and a trough of low pressure resulted in heavy rainfall and improving drought conditions to southeast Texas and southwest Louisiana. *********************************************************************************** US, Canada, Announce Dispute Settlement on Trade in Solar Products The United States and Canada Thursday announced a memorandum of understanding to settle a dispute on trade of solar products under the United States-Mexico-Canada Agreement. The MOU promotes greater North American solar supply integration and reaffirms both countries’ commitment to prohibit imports of solar products produced in whole or in part with forced or compulsory labor, according to the U.S. Trade Representative’s Office. The MOU also contains a mechanism to ensure that solar product imports from Canada do not undermine the existing U.S. safeguard measure on imports of solar products. Ambassador Katherine Tai says, “Reaching this settlement with Canada will promote greater deployment of solar energy in the United States using products from one of our closest allies.” The U.S. imposed the solar safeguard measure during the Trump Administration. This year, a USMCA panel issued its report, finding that the prior Administration’s decision to include imports from Canada in the solar safeguard measure was inconsistent with certain USMCA rules. *********************************************************************************** USDA: Adult Obesity Increased During Pandemic USDA’s Economic Research Service reports behavior changes during the pandemic exacerbated an already existing adult obesity epidemic. As the COVID-19 pandemic unfolded in 2020, studies using limited online surveys found evidence of weight gain among U.S. adults. However, because the pandemic surveys did not represent the overall U.S. adult population, findings derived from them did not fully show how much obesity rates changed for adults during the pandemic. The study found that, compared with a pre-pandemic baseline period, adult obesity prevalence was three percent higher over the period from March 13, 2020, to March 18, 2021, the first year of the COVID-19 pandemic. Findings also showed statistically significant changes in each of the four obesity-related behaviors during the COVID-19 pandemic. Participation in exercise rose 4.4 percent, and people slept 1.5 percent longer. Meanwhile, the number of days in the period of a month in which alcohol was consumed was 2.7 percent higher, and cigarette smoking dropped by four percent. *********************************************************************************** Farm Bureau Foundation Awards Nearly $9,500 in Ag Literacy Grants The American Farm Bureau Foundation for Agriculture awarded $9,400 in grants to recognize agricultural literacy programs of ten state and county Farm Bureaus. The grants are funded through the White-Reinhardt Fund for Education program, which acknowledges communities that are engaging with students on the fundamental role of agriculture in the everyday lives of all Americans. Daniel Meloy, Foundation Executive Director, says, “Agricultural literacy programs like the ones selected for grants are inspiring students to understand where their food comes from.” State and county Farm Bureaus may apply for $1,000 grants in support of education programs for grades K-12 in order to initiate new ag literacy programs or expand existing programs. Organizations and schools can work with local Farm Bureaus to apply for the grants, which are available on a competitive basis. Grants are awarded twice a year, in the spring and fall. The list of grant winners is available at agfoundation.org. *********************************************************************************** Last Call for Lamb Summit Registration With the American Lamb Summit just a month away, and only a few seats remaining, anyone wanting to attend should register in the next few days. The Lamb Summit begins Monday, August 8, in East Lansing, Michigan. Sessions focus on industry challenges and opportunities, competitor analysis, eating quality of lamb, including a taste panel, carcass quality evaluation and yield cutting demos, and accelerated lambing. August 9 sessions will feature hands-on learning about meat and muscle biology, genetics and meat quality, ultrasounding to determine meat quality, feed composition’s influence on carcass composition, industry environmental sustainability, plus insights into the non-traditional and direct-to-consumer markets. The 2022 American Lamb Summit, sponsored by Premier 1 Supplies and the American Lamb Board, strives to inspire the next level of change and collaboration among all segments of the US Lamb industry to improve competitiveness, product quality and productivity through increased use of the most efficient, progressive management tools. Complete information is available at LambSummit.com.
| Rural Advocate News | Friday July 8, 2022 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Friday, the same time the Labor Department will report on nonfarm payrolls and the U.S. unemployment rate for June. Traders will continue to closely watch the latest weather forecasts and any news related to the economy and interest rates. A report on U.S. consumer credit in May is due out at 2 p.m. CDT. Weather Moderate to locally heavy rain with a threat of flooding is in store for the central and eastern Midwest Friday. Northern and central crop areas have received some beneficial moisture in storms during the past week. Meanwhile, the southern Midwest, Delta and southeast Plains will be stressfully hot and dry. Heat index values will exceed 110 Fahrenheit in many locales of the southern U.S.
| Rural Advocate News | Thursday July 7, 2022 |
UN Report: Global Hunger Increasing A new report released Tuesday from the United Nations shows the number of people affected by hunger globally rose to nearly 830 million in 2021, providing fresh evidence that the world is moving in reverse. The UN report says the world is moving in the opposite direction from the Sustainable Development Goal of ending hunger, food insecurity and malnutrition in all its forms, by 2030. The report represents an increase of about 46 million since 2020, when the COVID-19 pandemic plunged the world’s economy into a downward spiral, and 150 million more since 2019. As many as 828 million people were affected by hunger in 2021, 46 million people more from a year earlier and 150 million more from 2019. After remaining relatively unchanged since 2015, the proportion of people affected by hunger jumped in 2020 and continued to rise in 2021, to 9.8 percent of the world population, according to the report. *********************************************************************************** Americans Increasingly Blame Supply Chain for Inflation Consumers are shifting the blame for inflation from the pandemic to supply chain issues, according to a recent poll by the Consumer Brands Association. The poll also showed that most Americans say inflation is hitting their household budgets and that tackling supply chain problems will positively affect inflation. The poll of 1,000 adults in mid-June found 72 percent of respondents said that increased grocery prices were having a very significant or somewhat significant impact on their household budgets. Only 22 percent said it was having a not very significant impact, and just six percent said it was having no impact. The frustration with higher prices has led to a notable shift in American attitudes about what is to blame for grocery inflation. The increase in supply chain costs and constraints as a source of blame for inflation coincides with an uptick in the interest of tackling supply chain problems as a means to ease inflation. *********************************************************************************** Increased June Runoff Not Enough for Missouri River Basin Drought Despite improved runoff in June, water conservation measures will continue for the second half of the navigation flow support season, based on the July 1 Missouri River Mainstem Reservoir System storage. June runoff in the Missouri River basin above Sioux City, Iowa, was 5.2 million-acre-feet, 94 percent of average. The updated 2022 runoff forecast is 20-million-acre feet, 78 percent of average and 1.7-million-acre-feet higher than last month’s forecast. June runoff into Garrison was 110 percent of average. John Remus of the Army Corps of Engineers says, “Heavy rain in mid-June on the upper Yellowstone River, coincided with mountain snowmelt increasing inflows into Garrison reservoir.” However, due to the ongoing drought and the amount of water stored in the reservoir system, water conservation measures will likely continue through the remainder of 2022 and into 2023. Officials say releases from Gavins Point will likely be at a minimum rate of 12,000 cubic feet per second. *********************************************************************************** Rice Industry Welcomes Consultations Regarding India Trade Distortion The United States and other World Trade Organization Members are initiating consultations with India on their trade-distorting rice subsidies. Current WTO rules allow governments to subsidize up to ten percent of the value of commodity production. However, the Indian government continues to subsidize more than half of the value of production for several commodities, including rice and wheat. India's lack of rule-following has reshaped global agricultural production and trade channels, according to Representative Rick Crawford, an Arkansas Republican. Crawford says, “This announcement is a long overdue step in the right direction in combatting bad actors like India and its rice subsidies to give our nation’s agriculture producers a level playing field.” USA Rice Chair Bobby Hanks says, “India makes up nearly half of global rice trade and much of its exported rice benefits from the government-established floor price, and then exported at low prices, distorting trade.” Australia, Canada, Japan, Paraguay, Thailand and Uruguay joined the U.S. in the effort. *********************************************************************************** Farm Credit Mid-America and Farm Credit Midsouth to Merge Two U.S. Farm Credit organizations recently announced the intent to merge. The Farm Credit Mid-American and Farm Credit Midsouth merger would create Farm Credit Mid-America. Dane Coomer, Farm Credit Midsouth board chairman, says, “We are excited about the possibility of this merger because the two associations share notable similarities and unique strengths.” Andrew Wilson, Farm Credit Mid-America board chairman, echoed his comments. Farm Credit Midsouth is located in the Mississippi River Delta just west of Memphis and headquartered in Jonesboro, Arkansas. Dan Wagner, current president and CEO of Farm Credit Mid-America, will continue to serve in that role with Louisville, Kentucky as the headquarters. Farm Credit Midsouth’s CEO, James McJunkins, previously announced his plan to retire at the end of February 2023. Combining the associations would yield approximately $36 billion in owned and managed assets, with nearly 1,650 team members serving more than 137,000 customers in 391 counties across six states. *********************************************************************************** Farmers Received Smaller Share of Price for Fresh Tomatoes in 2021 The farm share of the retail price of fresh, field-grown tomatoes—the ratio of what farmers received to what consumers paid—fell from 43 percent in 2020 to 36 percent in 2021. While the national, monthly average price of such tomatoes at grocery stores fell 11 cents to $1.85 per pound in 2021, the monthly average price received by farmers simultaneously fell 16 cents to $0.56 per pound. As part of calculating the farm share, USDA’s Economic Research Service assumes that farmers supply a little less than 1.2 pounds of fresh tomatoes for each pound sold at retail, as 15 percent of the fresh tomatoes shipped to grocery stores is lost through spoilage or is otherwise damaged. Farm prices for tomatoes were lower in 2021 as U.S. domestic production of all types of fresh-market tomatoes rose 1.3 percent. This came despite a four percent decline in overall fresh vegetable production caused partly by extreme heat in growing regions.
| Rural Advocate News | Thursday July 7, 2022 |
Thursday Watch List Markets The U.S. Labor Department's weekly report of jobless claims is due out at 7:30 a.m. CDT, the same time as the Census Bureau releases the trade deficit for May. USDA will release more specific export data from the Census Bureau later Thursday morning. The U.S. Energy Department releases natural gas storage at 9:30 a.m., followed by energy inventories and ethanol production at 10:00 a.m. USDA's weekly export sales report will be out Friday morning, due to this week's holiday schedule. Weather Thursday brings another day with widespread shower and thunderstorm potential for northern and central crop areas, with locally heavy rain and benefit to crops. Southern areas will be dry and hot, especially in the Southern Plains. Crop and livestock stress continues.
| Rural Advocate News | Wednesday July 6, 2022 |
Farmer Optimism Remains Weak The Purdue University/CME Group Ag Economy Barometer continued lower in June, down two points to a reading of 97. The barometer’s Index of Future Expectations also dropped, falling five points to a reading of 95, the lowest level since 2016. Producers were slightly more optimistic about their current conditions. The Index of Current Conditions rose five points to 99, but rising input costs and uncertainty about the future continue to weigh on farmer sentiment. Many producers in the survey said they’re concerned about the ongoing rise in production costs and volatile commodity prices, two factors that could lead to a production cost-income squeeze in 2023. The Farm Financial Performance Index, which deals with income expectations in the current year, rose two points in June to 83. However, that’s still the lowest level for the index during the past two years. Input prices and availability continue to be the top concerns for U.S. producers. *********************************************************************************** Proposed Changes on Using Atrazine The Environmental Protection Agency released proposed changes to the agency’s September 2020 atrazine interim decision. The Scoop says the proposal includes five changes to atrazine labels to lower runoff from farm fields. The agency wants to prohibit application when soils are saturated or above field capacity. The proposal would also prohibit application within 48 hours of a forecasted rain or storm event. The agency also wants to prohibit aerial applications of all formulations. The proposal would restrict annual application rates to two pounds of active ingredient or less per acre per year or less for applications to sorghum, field corn, and sweet corn. An additional “picklist” to labels requires growers to select a combination of application rate reductions and-or runoff control measures when using atrazine in certain watersheds. The EPA says the picklist method is intended to help growers select runoff control practices that are the least burdensome to them. *********************************************************************************** U.S., China Talk Trump Tariffs Senior U.S. and Chinese officials discussed U.S. economic sanctions amid reports that the White House is considering rolling back some of the levies imposed by the previous administration. During a call on Tuesday morning, China’s Vice Premier told U.S. Treasury Secretary Janet Yellin that lifting tariffs and sanctions and the fair treatment of Chinese enterprises are areas of concern for the Southeast Asian nation. Bloomberg says the administration called the talks candid and substantive. However, the secretary mentioned several issues that concerned the U.S., including the impact of Russia’s war against Ukraine on the global economy and China’s unfair, non-market economic practices. The discussion happened as President Biden may roll back some of the American tariffs on Chinese imports worth hundreds of billions of dollars, possibly this week. As inflation increases in America, economic experts expect the administration will ease the taxes to help lower the costs of everyday items. *********************************************************************************** West Coast Port Labor Contract Expires Negotiations will continue on a new labor contract for the more than 22,000 workers at U.S. West Coast ports. Reuters says industry leaders and the White House are watching the high-stakes talks closely. The agreement will include 29 Pacific Coast ports from California up to Washington state, ports that bring in up to 40 percent of America’s imports. The Pacific Maritime Association employer group and the International Longshore and Warehouse Union said in a joint statement that cargo will keep moving at the ports until an agreement can get reached. However, Pete Tirschwell of S&P Global Market Intelligence says, “When the contract expired, so did the ‘no strike’ clause.” More than 150 business groups asked President Biden to push for a swift resolution. Agriculture groups and others business organizations are watching the negotiations with concern after the last West Coast port labor contract negotiations broke down in 2015 after nine months. *********************************************************************************** New Tool Assesses Corn Rootworm Risk The National Corn Growers Association is introducing a new tool for growers looking to find out their risk for Corn Rootworm. The new Corn Rootworm Risk Tool gives farmers the chance to enter historical data and current management data, along with corn rootworm intensity, to determine the potential risk for developing resistance to valuable Bt traits. Using the information that’s submitted by the farmer or technical advisor, the tool gives growers a low-, medium-, or high-risk level and summarizes the appropriate best management practices for each scenario. The predictive tool is a helpful resource that’s not designed to replace conversations with technical advisors on what practices or strategies to employ. The ultimate objective is to suppress corn rootworm populations and assist farmers in maintaining the effectiveness of important tools like Bt corn. For more information or assess the potential risk of resistance, go to btrisk.iwilltakeaction.com. For additional best management practices, go to iwilltakeaction.com/insects. *********************************************************************************** California Company Intends to Build First Sugar Cane Ethanol Plant A California company intends to build the first ethanol plant in America powered by sugar cane. California Ethanol and Power intends to construct a $650 million plant on 160 acres. The plant is part of a $1.1 billion project that includes agreements with local farmers to grow sugar cane for the ethanol plant. The company also will have an agreement in place with a top farming cooperative to market the ethanol. L.A. Business Journal says if the company gets enough financing, the plan is to have the plant running by late 2025, producing about 68 million gallons of ethanol every year. The plant will also generate byproducts like 49 megawatts of electricity and about 740 million gallons of biomethane that can be used to heat businesses and homes. The plant will also produce about 200,000 tons of carbon dioxide gas that the company will capture and sell to other companies needing CO2 emission offsets.
| Rural Advocate News | Wednesday July 6, 2022 |
Wednesday Watch List Markets Traders keep a close watch on the latest weather forecasts this time of year and will be digesting Tuesday afternoon's Crop Progress report from USDA. At 1 p.m. CDT, Fed watchers will be able to read minutes from the most recent Open Market Committee meeting, likely full of hawkish comments. Many of this week's reports are shifted forward one day, due to the holiday schedule. Weather Showers and thunderstorms continue in the forecast for northern and central crop areas Wednesday. The storms in general will offer beneficial rainfall for crops. Meanwhile, stressful heat remains in effect over southern crop areas, notably in th
| Rural Advocate News | Tuesday July 5, 2022 |
EPA Revising Atrazine Registration The National Corn Growers Association is concerned about a move by the Environmental Protection Agency that could restrict access to a critical crop protection tool. The EPA says it’s revising its registration for atrazine, a well-studied herbicide essential to farming. “We’re disappointed by this,” says NCGA President Chris Edgington. “We can feed and fuel the world and fight climate change, but we can’t do these things without modern farming tools, and atrazine is a critical tool for farming.” The new labeling requirements will impose difficult new restrictions and mitigation measures on the herbicide, limiting how much product farmers can use. The latest development marks a step backward in EPA’s commitment to transparency and using the best available science. However, Edgington says that EPA listened to growers’ requests and agreed to additional scientific review. NCGA will continue working with EPA through the entire process, which now enters a 60-day comment period. *********************************************************************************** Applications Open for Young Leader Program Young people passionate about agriculture and ready to become leaders are invited to apply for the next class in the ASA Corteva Agriscience Young Leader Program. The program is sponsored by the American Soybean Association and Corteva. It’s a two-phase educational program for actively farming individuals and couples passionate about agriculture. Phase 1 takes place November 29-December 1 in Johnston, Iowa, while Phase 2 is March 7-11, 2023, at Commodity Classic in Orlando, Florida. “As a member of the Class of 2009, I can tell you that this program is important and has had a real impact on not only the soybean industry but all of agriculture,” says ASA President Brad Doyle. Individual soybean growers and couples are encouraged to apply for the program, which focuses on leadership and communication, agriculture trends and information, and developing a strong and connected network. For more information, growers can go to soygrowers.com. *********************************************************************************** Wheat Growers List 2023 Farm Bill Priorities The National Association of Wheat Growers shared their priorities for the 2023 Farm Bill. As lawmakers continue putting the next farm bill together, wheat growers will be advocating for these priorities on Capitol Hill. The priorities include protecting crop insurance to ensure growers have a strong and reliable safety net assists wheat growers when it’s needed during disasters. They also want to support financial and technical assistance provided through voluntary conservation programs. The wheat growers want an increase in the reference price for wheat in Title 1 to help cover the cost of production more accurately. They also favor enhancing USDA’s market access and development programs to enhance trade. “The farm bill addresses many programs that are critical for wheat growers, and we look forward to actively engaging in the farm bill reauthorization process,” says NAWG President Nicole Berg. “Sharing our priorities is the first step in the reauthorization process.” *********************************************************************************** NMPF: Prioritize Food Access at Hunger Conference The National Milk Producers Federation led eleven national agriculture, anti-hunger, nutrition, and medical groups in a virtual listening session with the White House on food access. The White House is holding its Conference on Hunger, Nutrition, and Health in September, and the groups want officials to place a high priority on accessing affordable, diverse, and nutritious foods. The NMPF organized the session to offer the White House expertise and real-world experience from a wide range of organizations on how important increased access to food and a diverse range of food choices are to fight nutrition insecurity and improve nutrition-related health. The event is part of the broader effort to provide input to the White House as officials put together a new strategy to end hunger and increase healthy eating and physical activity among Americans by 2030. Officials say the White House plans to release its new strategy during the September conference. *********************************************************************************** Nominations Open for Farm Dog of the Year Contest Farmers are invited to submit their nominations for the 2023 Farm Bureau Farm Dog of the Year contest, which is co-sponsored by Purina. It’s the fifth annual contest, which celebrates farm dogs and the many ways they support farmers and ranchers in producing nutritious food for families and their pets across America. The nomination deadline has been extended to July 15. The grand prize winner will get a year’s worth of Purina dog food and $5,000 in prize money. The winner also gets recognized during an award ceremony at the American Farm Bureau Federation Convention in January 2023. Up for four regional runners-up will each win $1,000 in prize money. The 2023 Farm Dog of the Year will also get featured in a professionally-produced video. Farm dog owners must be members of the Farm Bureau to enter their dogs in the competition. For more information, prospective contest entrants can go to fb.org. *********************************************************************************** Bill Would Keep U.S. Ag from Exploitation New York Representative Elise Stefanik and other House Republicans introduced legislation that would prevent adversarial countries from acquiring American companies amid global food shortages. Stefanik says food security is national security, and she’s proud to stand against our foreign adversaries as they attempt to exploit potential vulnerabilities and assert control over America’s agricultural industry. The bill would specifically prevent countries like China, Russia, Iran, and North Korea from being allowed to buy American agricultural companies, citing them as “prohibited.” It also lists biotechnology and agriculture as critical infrastructure. “Adversarial nations like China continue to threaten our homeland, using tactics like buying American agriculture companies and stealing agricultural research to undermine our economy,” Stefanik says. Fox News says the food security issue is a global problem because of the war in Ukraine, which has led to global food shortages. Republicans say Russia is using food manipulation as a weapon in its invasion of Ukraine.
| Rural Advocate News | Tuesday July 5, 2022 |
Tuesday Watch List Markets Back from the three-day weekend, trading in U.S. grain and livestock futures will resume at 8:30 a.m. CDT Tuesday. Traders will be checking the latest weather forecasts and observable rain amounts from the weekend. A report on May U.S. factory orders is due out at 9:00 a.m. CDT, followed by USDA's weekly export inspections at 10 a.m. CDT. USDA's Crop Progress report is set for 3 p.m. CDT, with attention on the latest good-to-excellent crop ratings. Weather Tuesday features scattered thunderstorms from the Northern Plains to eastern Midwest with some benefit to crops. Meanwhile, stressful hot and dry conditions are in store for the remainder of the Plains, Midwest, Delta and Southeast.
| Rural Advocate News | Friday July 1, 2022 |
USDA Releases Planted Acreage and Grain Stocks Reports The USDA’s Acreage Report shows farmers have planted 89.9 million acres of corn, down four percent from last year. Soybean planted area for 2022 is estimated at 88.3 million acres, one percent higher than last year. The all-wheat planted area is estimated to be 47.1 million acres, one percent higher than last year. If realized, this represents the fifth-lowest all wheat planted area since records began in 1919. The 2022 winter wheat planted area is 34 million acres, one percent higher than 2021. Because of planting delays in Minnesota, North Dakota, and South Dakota, the acreage numbers will be updated in August. Corn stocks, in all positions, totaled 4.35 billion bushels on June 1, up six percent from last year. Soybeans stored in all positions totaled 971 million bushels, up 26 percent from last year. Old crop-all wheat in all positions totaled 660 million bushels, 22 percent lower than 2021. *********************************************************************************** Court of International Trade Looking Into High Fertilizer Prices The Court of International Trade is considering an appeal against the U.S. International Trade Commission’s decision to place duties on phosphorous fertilizers from Morocco and Russia. The National Corn Growers Association says that’s put fertilizer companies under scrutiny this week. “We’ve been sounding the alarm for a long time and telling officials these tariffs are hurting farmers,” says NCGA President Chris Edgington. “We finally have seen results as a judge with the Court of International Trade began asking tough questions about the assertions made by fertilizer companies.” The appeal comes after the Department of Commerce and the International Trade Commission ruled last year in favor of a petition by U.S.-based Mosaic to impose duties on phosphorous fertilizers imported from Russia and Morocco. Mosaic claimed the imports were unfairly subsidized and undercutting prices in the U.S. Decisions from the ITC and the Court of International Trade are expected later this summer. *********************************************************************************** U.S. Biofuel Groups Applaud Canada Clean Fuel Regulations The U.S. Grains Council, Growth Energy, and the Renewable Fuels Association applauded Canada for its finalized Clean Fuel Regulations. Those regulations are an initiative to reduce the lifecycle carbon intensity of fuel and energy used in Canada. That will help Canada achieve more than 20 million tons of annual reductions in greenhouse gas emissions by 2030. The Canadian Clean Fuel Regulations will rely heavily on the use of low-carbon biofuels like ethanol. The program will include an average of 15 percent ethanol in gasoline by 2030. The groups issued a release commending Canada as a global leader because of its plan to slash greenhouse gas emissions from the transportation sector through higher blends of biofuels. The groups say the Clean Fuel Regulations in Canada set the country on a path toward better air quality, energy security, and carbon mitigation by moving to achievable goals like 15 percent ethanol in all gasoline by 2030. *********************************************************************************** Additional Steps to Strengthen Child Nutrition Programs USDA will provide nearly $1 billion in additional funding to help schools purchase American-grown food for their meal programs. The agency also says the recent signing of the Keep Kids Fed Act equips schools, summer meal sites, and childcare programs with extra resources so they can continue serving children through the 2022-2023 school year. Both moves are a response to the significant challenges child nutrition program operators continue to face, such as high food costs and supply chain disruptions. The $943 million boost from the department is getting provided through the USDA’s Commodity Credit Corporation. Funds will be distributed by state agencies to schools across the country to help them buy domestically-grown foods for their meal programs. This assistance builds on the $1 billion in Supply Chain Assistance funds USDA allocated in December 2021, which states can use this year as well as the next to provide schools with funding for commodity purchases. *********************************************************************************** TFI Appreciates Congressional Letter on Rail Service Issues The Fertilizer Institute’s President and CEO, Corey Rosenbusch, praised the bipartisan congressional letter sent this week to the Surface Transportation Board regarding poor railroad service. The letter outlined the negative impact the poor service is having on the fertilizer industry and the overall agricultural sector. “With over half of all fertilizer moving by rail, we are grateful for the 51 lawmakers who brought the issue of inconsistent rail service to the Surface Transportation Board’s attention,” says Rosenbusch. Fertilizer shipments heavily rely on railroads to reach farmers, but imposed restrictions, along with skeleton crews and railroad-led initiatives such as precision-scheduled railroading have forced fertilizer shipping reductions and potential delays. “With the world leaning on U.S. farmers more than ever before to feed the growing population, fertilizer must get to farmers in a timely manner and crops harvests also need to get to their destinations promptly, including the kitchen table,” Rosenbusch adds. *********************************************************************************** U.S. Hog Inventory Down One Percent The U.S. hog herd totaled 72.5 million hogs and pigs on farms across the country, down one percent from June 2021. The Quarterly Hogs and Pigs Report shows that number is down slightly from the March 1 report. Other findings in the report from the National Ag Statistics Service show of the 72.5 million hogs and pigs, 66.4 million were market hogs, and 6.17 million were kept for breeding. Between March and May, 32.9 million hogs were weaned on U.S. farms, a one percent drop from the same time last year. During that same timeframe, producers weaned an average of 11 pigs per litter. Hog producers intend to have 3.02 million sows farrow between June and August and 3.01 million sows between September and November. Iowa has the largest inventory among the states at 23 million head. Minnesota was second at 8.4 million head. North Carolina was third with 8.2 million.
| Rural Advocate News | Friday July 1, 2022 |
Friday Watch List Markets On the first day of July and ahead of a three-day weekend, the Institute of Supply Management's U.S. index of manufacturing is due out at 9 a.m. CDT, the only significant report of the day. Traders will be keenly watching the latest weather forecasts, including developing chances for rain in the Corn Belt. Weather Showers and thunderstorms are in store for portions of the western Plains, Midwest and across the Southeast Friday. Rainfall will combine with seasonal temperatures to favor pollinating corn and flowering soybeans. Stressful heat and dryness will continue to be noted in the southern Plains.
| Rural Advocate News | Thursday June 30, 2022 |
AFT: Smarter Land Use Planning is Urgently Needed Smart growth and investment in America's downtowns and main streets must occur now to secure the land that grows our food, according to American Farmland Trust. The organization Wednesday released its new report, Farms Under Threat 2040: Choosing an Abundant Future and the accompanying web mapping tool. AFT research shows Americans are paving over agricultural land at a rapid pace. From 2001-16, the nation lost or compromised 2,000 acres of farmland and ranchland every day. The report shows the U.S. is on track to convert 18 million acres of farmland and ranchland from 2016-40—an area the size of South Carolina. And it could get worse. If rural sprawl accelerates, America could squander one million acres of agricultural land every year and over 24 million by 2040. But if Americans choose a better path—embrace smart growth and minimize sprawl—they can save up to 13.5 million acres of the nation’s farmland. Find the full report at farmland.org. *********************************************************************************** House Lawmakers Introduce American Port Access Privileges Act Two California Democrats Wednesday introduced the American Port Access Privileges Act in the House of Representatives. John Garamendi and Jim Costa say the bill follows up on the Ocean Shipping Reform Act. Representative Costa says, “We need to remove bottlenecks and mitigate congestion at our ports to carry out American exports.” The legislation would ensure fair trade for U.S. businesses and keep hard-won foreign markets accessible to agricultural exporters by codifying the current preferences for military, Jones Act, and other U.S.-flagged vessels in place at many major American ports. Additionally, the legislation would establish a secondary berthing preference for ocean-going commercial vessels servicing multiple ports in the United States, and ensure that the new preferential berthing would never interfere with U.S. Coast Guard orders for commercial vessels, port safety or collective bargaining agreements for port workers. The legislation is endorsed by the Agriculture Transportation Coalition, National Milk Producers Federation, and the California Farm Bureau Federation. *********************************************************************************** Vilsack Announces Bioproduct Pilot Program The Department of Agriculture is accepting applications for a new pilot program to support the development of biobased products. Specifically, USDA is looking for products that have lower carbon footprints and increase the use of renewable agricultural materials, creating new revenue streams for farmers. The $10 million investment is part of the larger Bipartisan Infrastructure Law. Agriculture Secretary Tom Vilsack announced the program while visiting Iowa. Vilsack says, “This pilot program is a critical part of USDA’s commitment to enhancing the circular economy and providing additional revenue streams for farmers.” The program will help farmers take field residues and waste products and turn them into value-added products that create wealth and drive economic development in rural areas. Under this program, USDA’s National Institute of Food and Agriculture can award up to $10 million divided among the highest-rated applications that include eligible universities and private-sector partners. Program information can be found on the NIFA website. *********************************************************************************** House Ag Member Davis Loses Primary Election A familiar face on the House Agriculture Committee lost in a primary election this week. Illinois Republican Representative Rodney Davis lost his reelection bid to Trump-backed Representative Mary Miller. Davis had represented Illinois' 13th Congressional District since 2013, and Miller had represented the 15th Congressional District since 2021. The districts were merged during a redistricting effort following the 2020 Census results and includes 35 central Illinois counties. The 52-year-old Davis served five terms representing the 13th District. Miller will face Democrat Paul Lange in the November general election. Former President Donald Trump held a campaign rally with Miller last weekend in Quincy, Illinois. In a statement, Davis says, “I’m proud of the work our team has done for our constituents since 2013,” adding, “We have delivered countless conservative policy solutions from historic tax cuts, student loan relief, farm programs, and investing in our transportation system.” Davis was endorsed by the Illinois Farm Bureau. *********************************************************************************** USDA Announces New Features for Market News App The Department of Agriculture Wednesday announced additional commodities and features are available on the free USDA Market News App. The App provides producers and others along the supply chain with instant access to market information about conventional and organic products. Version 2.0 includes access to three additional commodity areas – Cotton and Tobacco, Dairy and Specialty Crops, as well as the ability to filter searches to see reports by Commodity Area and Market Type, the ability to add reports to Favorites and Subscriptions by Commodity Area and Market Type, an improved way to manage subscriptions and a calendar feature that provides access to previously released reports. USDA launched the first version of its free Market News app in February 2022, with access to about 800 livestock, poultry, and grain market reports. The USDA Market News app is available in both iOS and Android versions and may be downloaded through the Apple and Google Play stores. *********************************************************************************** USDA: Cost of a Home-grilled Cheeseburger up 21 Cents From 2021 Home-grilled cheeseburgers, a summer cookout staple, will cost consumers more this Independence Day weekend. USDA’s Economic Research Service says the ingredients for a home-prepared 1/4-pound cheeseburger totaled $2.07 per burger, with ground beef making up the largest cost at $1.20. This represents an increase of 11.3 percent compared to the $1.86 it cost to produce the same cheeseburger in 2021. Ground beef prices increased 16.9 percent and accounted for 17 cents of the increase between 2021 and 2022. Cheddar cheese and bread costs each rose about one cent per burger from 2021 to 2022. Iceberg lettuce prices rose the most, by 23.3 percent, but the relatively small proportion it contributes to the total cost of a burger means it added just two cents to the total. The American Farm Bureau Federation earlier this week also released its summer marketbasket survey, showing the cost of a July 4th cookout is 17 percent higher than a year ago.
| Rural Advocate News | Thursday June 30, 2022 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CDT, along with weekly U.S. jobless claims, reports on U.S. personal incomes and consumer spending and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly update of natural gas storage is due out at 9:30 a.m., followed by USDA's Acreage and June 1 Grain Stocks reports at 11 a.m. -- two reports that have a history of being market-movers. Weather Two fronts, one north and one south, will produce scattered showers across both regions on Thursday. Areas in the middle of the country will see seasonably warm temperatures and dry conditions, good weather for wheat harvest. Cooler conditions are found across the north and into Canada, where the better conditions for developing crops are found.
| Rural Advocate News | Wednesday June 29, 2022 |
Survey Reveals Americans Want Clearer Product Labeling of Plant-Based ‘Chicken’ The National Chicken Council Tuesday announced findings from a recent national survey of Americans regarding consumer attitudes about chicken and plant-based ‘chicken’ alternatives. Survey participants included individuals who consume meat and animal products, along with flexitarians, vegetarians and vegans. The results indicate the majority of Americans want clearer product labeling and separate shopping sections for plant-based products. NCC Senior Vice President of Communications, Tom Super, says, “This study shows there is overwhelming support for clearer packaging and separate store placement for imitation ‘chicken,’ and that the term ‘chicken’ should be reserved only for food products made from the actual animals.” One in five Americans reported that they accidentally purchased the plant-based product, believing it to be real chicken. Survey results also indicate that consumers, including those who eat plant-based ‘chicken,’ prefer authentic chicken for taste, affordability and cooking versatility. And, four in five Americans want plant-based options to clearly be labeled. *********************************************************************************** Supreme Court Rejects R-CALF Lawsuit The Supreme Court this week denied R-CALF’s lawsuit against 13 state beef councils and the Beef Checkoff. The National Cattlemen’s Beef Association says the ruling effectively ends “yet another R-CALF attack on the Beef Checkoff and prevents the activist attorneys at Public Justice, from further diverting Checkoff and beef industry resources.” NCBA intervened in the lawsuit in its early days to help defend state beef councils from R-CALF, “who falsely attacked state beef councils.” NCBA says multiple court decisions rejected these allegations and reaffirmed the work and direction of the Beef Checkoff and those who guide it. NCBA CEO Colin Woodall says, “The Supreme Court’s rejection of R-CALF’s petition confirms the Beef Checkoff, and its overseers, are adhering to the letter and spirit of the laws that protect and guide producer investments in the program.” In the lawsuit, R-Calf claimed state beef checkoff organizations are private corporations and use half of the beef checkoff collection to fund private speech. *********************************************************************************** Wheat Industry Comments on Conclusion of FDA Study of Drought Tolerant Wheat The Food and Drug Administration recently concluded it has no further questions regarding the safety of drought-tolerant HB4 wheat developed by Bioceres Crop Solutions Corp. In response, U.S. Wheat Associates and the National Association of Wheat Growers issued a joint statement this week. The groups say the finding by the FDA is not an approval for this or any other transgenic wheat to be planted for commercial sale in the United States. To date, the HB4 wheat has been approved for commercial production within a closed system in Argentina only. The trait has been approved for human consumption by regulators in Brazil in the form of flour, and in Australia, New Zealand and now in the United States. Bioceres recently announced it will seek approval to plant HB4 wheat in Australia, but it has not announced plans to commercialize it in the United States. The statement says, "The U.S. wheat industry recognizes the benefits and value that can be created through the prudent application of modern biotechnology." *********************************************************************************** Edge Dairy Farmer Cooperative Unveils Milk Pricing Reform Priorities Edge Dairy Farmer Cooperative, one of the largest dairy co-ops in the country, stressed flexibility and fairness in announcing its priorities for reforming the federal milk pricing system this week. Edge CEO Tim Trotter says, “Edge is intently focused on strengthening the relationship between farmers and processors in a way that increases transparency, fairness and competition.” Differences across the Federal Milk Marketing Orders require added flexibility to meet their respective needs, and current markets driving milk outside the FMMO system point to a need for a standard set of "contracting principles" to build a more fair and equitable pricing system, according to trotter. Edge has researched, listened to members and engaged with industry leaders and other stakeholders from across the country for more than a year, including coordinating a multistate task force. Under the flexibility priority, Edge’s proposal accounts for differences in product mixes across the country. The cooperative says more regional flexibility would benefit all dairy farmers. *********************************************************************************** Recycling Used Beer Yeast for Environmental Protection Brewer's yeast used to make beer is typically discarded once it's no longer needed. Sometimes, though, the leftover yeast is mixed into livestock feed as a source of protein and vitamins. Now, there may be even more reason to continue this practice, according to findings by a team of scientists with the Agricultural Research Service. Laboratory results suggest that using leftover brewer's yeast as a feed additive may benefit the environment by helping cows belch less methane into the air as a greenhouse gas that contributes to global climate change. Although spent brewer's yeast is sometimes used as a livestock feed additive, further cow feeding trials are necessary to fully assess its potential to reduce methane and ammonia on a farm scale, according to the researchers. Those results should give a better idea of the yeast's potential role as part of a larger, integrated approach to making animal agriculture more environmentally sustainable. *********************************************************************************** Goodyear Announces New Sustainable Soy-Based Tires The Goodyear Tire & Rubber Company recently announced that two lines of its commercial tires are now made with a renewable soybean oil compound. The Goodyear Metro Miler G152 and G652 tires for transit buses, along with the popular Endurance WHA waste haul tire, are now made with soybean oil, which replaces a portion of the petroleum-based materials used in their production. Both the Metro Miler tires and the Endurance WHA waste haul tire continue to deliver high-performance benefits. The new soy-biobased tires build on the soy checkoff’s research investment and longstanding partnership with the global tire company. United Soybean Board Chair Ralph Lott says, “These big tires are another exciting way to deliver sustainable soy to more lives, every day.” Goodyear has a long-term goal to fully replace petroleum-derived oils in its products by 2040. This commitment, according to USB, drives additional demand for U.S. soy products, grown sustainably by U.S. soybean farmers.
| Rural Advocate News | Wednesday June 29, 2022 |
Wednesday Watch List Markets Wednesday's reports start with an update of first-quarter U.S. GDP at 7:30 a.m. CDT. Fed officials will be speaking throughout the day at a banking conference in Europe and may scare investors, at times. At 9:30 a.m., the U.S. Energy Department will issue two weeks of inventory data, including ethanol production after encountering technical problems last week. USDA's quarterly Hogs and Pigs report is due out at 2 p.m. Weather A frontal boundary across the north will see a storm system riding along it on Wednesday, producing scattered showers and thunderstorms, some of which may be severe in the Northern Plains. A brief burst of heat is occurring ahead of the front today in the Northern and Central Plains, but temperatures across the rest of the country are much more seasonable. Meanwhile, a stalled front from the weekend continues to produce scattered showers in the Southeast and along the Gulf Coast. We also continue to watch a disturbance in the northwestern Gulf of Mexico for tropical development. It may become a short-lived tropical system before reaching the Texas coastline on Thursday.
| Rural Advocate News | Tuesday June 28, 2022 |
Consumers Paying more for Independence Day Cookout U.S. consumers will pay $69.68 for their favorite Independence Day cookout foods, based on a new American Farm Bureau Federation marketbasket survey. The average cost of a summer cookout for ten people breaks down to less than $7 per person. The overall cost for the cookout is up 17 percent or about $10 from last year, due to ongoing supply chain disruptions, inflation and the war in Ukraine. Survey results showed the retail price for two pounds of ground beef at $11.12, up 36 percent from last year, the largest year-to-year price increase in the survey. Several other foods in the survey, including chicken breasts, pork chops, potato salad, fresh-squeezed lemonade, pork and beans, hamburger buns and cookies, also increased in price. One bright spot for consumers is the average retail price for strawberries, which declined by 86 cents compared to a year ago. Sliced cheese and potato chips also dropped in price, 48 cents and 22 cents, respectively. *********************************************************************************** Farm Bureau Names New Executive Vice President The American Farm Bureau Federation announced Joby Young as the organization's next Executive Vice President late last week. Young will take the role in mid-July following the retirement of Dale Moore. Joby will serve in a chief of staff role at AFBF. It's a familiar role for Young, who previously served in the same capacity at USDA and in Congress. AFBF President Zippy Duvall says, “The Farm Bureau family will be well-served by his strong leadership skills.” Young says he looks forward to starting in the new role, adding, "I'm honored to join the talented team at the American Farm Bureau Federation." Young is currently a partner at Horizons Global Solutions LLC, a consulting firm where he advises clients in the food and agriculture sectors. Young previously served as Chief of Staff in various USDA offices and mission areas, before becoming the Chief of Staff to the Deputy Secretary. *********************************************************************************** U.S., Taiwan, Hold First Trade Meeting Trade officials from the U.S. and Taiwan met Monday for the inaugural meeting of the U.S.-Taiwan Initiative on 21st-Century Trade. U.S. Deputy Trade Representative Sarah Bianchi says, "This initiative will unlock market opportunities, promote innovation and create inclusive economic growth for our workers and businesses." The trade officials reaffirmed their shared interest in developing and deepening trade and promoting innovation. They also discussed the development of an ambitious roadmap for negotiations to reach agreements with high-standard commitments and economically meaningful outcomes. The commitments will cover several trade areas, including trade facilitation, regulatory practices, agriculture, anti-corruption, small- and medium-sized enterprises, digital trade, labor, environment, standards, state-owned enterprises, and non-market policies and practices. The trade officials also held roundtable conversations with several groups of U.S. and Taiwan stakeholders. Members of Congress and labor and business leaders also shared their views on ways the United States and Taiwan can jointly advance trade policies. *********************************************************************************** Guide Outlines Steps to Take When Pesticide Drift Occurs The University of Illinois Extension has a pesticide drift guide available for farmers. The new guide helps producers and gardeners know what to do if pesticide drift is suspected. Damage can occur when pesticide drifts from its intended location onto adjacent fields and landscapes. Drift happens when pesticide spray particles and vapors escape from the intended target area. University of Illinois Extension weed science specialist Michelle Wiesbrook says, “The most common type of pesticide misuse is pesticide drift, and when it occurs, emotions can run high while seeking answers." There are two ways pesticides can be carried downwind to non-target areas: vapor drift and particle drift. Both types of drift should be considered when making an application, and steps should be taken to minimize their occurrence. The new free guide provides more information on drift and serves as a navigation tool for those faced with potential drift injury challenges. Read the guide at go.illinois.edu/drift. *********************************************************************************** BASF Donates $50,000 to Bee and Butterfly Habitat Fund Program BASF Agricultural Solutions North America will donate $50,000 to The Bee and Butterfly Habitat Fund's Seed A Legacy pollinator habitat program. The donation is part of BASF's annual Living Acres #MonarchChallenge initiative. The Bee and Butterfly Habitat Fund will use BASF's donation to expand its Seed A Legacy pollinator habitat program with the goal of restoring high-quality pollinator habitat with free or reduced-cost seed to landowners across 12 Midwest states. Since its inception in 2015, the Monarch Challenge has resulted in the planting of 110,000 milkweed seedlings and the creation of more than 67,000 pollinator habitats. The fund works with landowners, conservationists, scientists, and other partners to build healthy and sustainable pollinator habitat with maximum benefits. Through the Seed A Legacy Habitat Program, each project receives free or heavily discounted pollinator seed mixes and the guidance to prepare, establish, and maintain the project for a minimum of five years. *********************************************************************************** Fuel Prices Decline for Second Straight Week The national average gas price declined for the second straight week, down 8.8 cents to $4.48 a gallon Monday. The national average is up 28.3 cents from a month ago and $1.79 per gallon higher than a year ago. The national average diesel price declined 2.7 cents in the last week, to $5.79 per gallon. Gas Buddy's Patrick De Haan says, “gas prices have continued to fall for the second straight week as the price of oil has faltered, ushering in the drop we’re seeing.” De Haan says prices could fall again this week, even ahead of the Independence Day holiday weekend. However, any sudden jolts to supply could quickly cause a turnaround, and the risk remains that when the peak of hurricane season arrives, prices could spike again. According to GasBuddy, U.S. retail gasoline demand rose last week, up 1.6 percent compared to the prior week. U.S. crude inventories remain 14 percent below the five-year average.
| Rural Advocate News | Tuesday June 28, 2022 |
Tuesday Watch List Markets Traders will continue to keep a close watch on the latest weather forecasts and even though there haven't been any export sale announcements lately, will check at 8 a.m. for possible news from USDA. An index on U.S. consumer confidence is due out at 9 a.m. CDT Tuesday. Grains are mostly higher early Tuesday, but may turn quiet ahead of Thursday's Acreage and Grain Stocks reports. Weather A cold front from the weekend has settled into the far South and Southeast where pop up showers will be likely. Another front is moving south out of Canada into the North-Central U.S. where more showers will be possible for the rest of the week as the front waffles around for the next several days. Showers will unfortunately be somewhat spotty and dryness is popping up in places around the region that could use a good soaking.
| Rural Advocate News | Monday June 27, 2022 |
NCGA Applauds Ruling on Imported Fertilizers The U.S. Department of Commerce made a final determination last week on imported fertilizers and unfair subsidies. The department found that urea ammonium nitrate fertilizer exported to America was subsidized and sold at less than normal value in the U.S. market during its period of investigation. The National Corn Growers Association says it’s an important step in the process, but the ruling won’t on its own lead to the placement of duties on nitrogen fertilizers shipped into the country. The final stage in the process is expected later this summer when the International Trade Commission makes a final ruling. “Placing tariffs on nitrogen fertilizers will land yet another blow to farmers, who are already dealing with a host of challenges,” says Brooke Appleton, NCGA vice president of public policy. “Farmers can’t farm with one hand tied behind their backs, and these actions getting pushed by fertilizer companies will tie their hands.” *********************************************************************************** White House Meets with Refiners on High Pump Prices but No Solutions Yet U.S. Energy Secretary Jennifer Granholm recently expressed interest in possibly lifting smog-fighting gasoline rules to help fight high gas prices at the nation’s pumps. The secretary also backed off a plan to ban fuel exports during a wide-ranging meeting with refiners. Reuters says tensions are high between President Biden and oil refiners. The two sides departed from the meeting far apart on possible solutions. Industry sources familiar with the meeting say both sides will continue talking. Biden has recently been critical of oil industry CEOs for pulling in huge profits from a supply crunch made worse by Russia invading Ukraine. The White House is unhappy with the refining industry’s move to idle about one million barrels per day of production capacity since 2020. Administration officials say the companies need to use those profits to restart plants and help fill the supply gap. Refiners say investing in reopening plants carries significant financial risks. *********************************************************************************** International Grains Council Boosts Production Outlook The International Grains Council raised its outlook for total global grain production in the 2022-2023 marketing year, while also increasing its forecast for ending stockpiles. Wheat and coarse grain production are now forecast at 2.255 billion metric tons, up from the May prediction of 2.251 billion. Ending stockpiles are forecast at 583 million metric tons. Wheat output is pegged at 769 million metric tons, unchanged from a month ago. Inventories are projected at 273 million tons, up from 271 million in May. Corn production is now expected to be 1.19 billion metric tons, up from the previous prediction of 1.184 billion. The IGC’s inventory forecast rose from 269 million tons last month to 271 million this month. The soybean production outlook rose to 390 million metric tons from 387 million in the last forecast. However, carryover stocks dropped from 58 million tons last month to 56 million in the new forecast. *********************************************************************************** Keep Kids Fed Act Passed in Both Chambers of Congress The House and Senate each passed the Keep Kids Fed Act last week, but the bill had to return to the House because the Senate version was slightly different. The Hagstrom Report says the House passed the Senate’s version of the bill that requires the re-establishment of the reduced price category that Rand Paul of Kentucky insisted on including in the Senate version. The agreement between the leaders of each committee in charge of school meals originally merged the reduced price and free meal categories into one free meal category for the upcoming school year. The legislation also provides $3 billion in additional funding for the school meals program, with offsets coming from rescissions from the Agriculture Department and Small Business Administration programs. Senate Ag Committee Chair Debbie Stabenow says, “Schools and parents can rest easy knowing that help is on the way so kids can continue getting school and summer meals.” *********************************************************************************** Sustainable Oils Facility Opens New Facility for Renewable Diesel Production Sustainable Oils opened a new state-of-the-art facility in Great Falls, Montana, last week. The facility works with over 100 U.S. farmers to grow camelina (cam-eh-LEE-nah), a plant used by their parent company Global Clean Energy to produce ultra-low carbon renewable fuels. Renewable diesel produced from camelina is a drop-in replacement for traditional diesel, but with fewer contaminants and far fewer emissions. The company says camelina has the potential to receive the lowest carbon intensity score of all the available feedstocks on the market today. Sustainable Oils specializes in the breeding, research, and marketing of camelina. They contract directly with farmers in the Northern Plains, High Plains, and Pacific Northwest to grow the camelina that will ultimately get used to create renewable fuel at Global Clean Energy’s refinery in Bakersfield, California. The company looks forward to enhancing economic opportunities for rural communities while producing some of the lowest-carbon renewable fuels in the world. *********************************************************************************** Application Period Open for Conservation Legacy Awards Farmers have a chance to share the story of how conservation is part of their farm operations and get recognized with a Conservation Legacy Award. All U.S. soybean farmers are eligible to win the award, sponsored by the American Soybean Association, the United Soybean Board, the Soybean Checkoff, and several others. The award recognizes farm management practices of soybean farmers that are both environmentally friendly and profitable. The selection process is divided into four regions, including the Midwest, Upper Midwest, Northeast, and South. One farmer from each region will be recognized at the Commodity Classic and one will be the award recipient. Some of the eligible practices include reduced tillage, cover crops, and improving energy efficiency or water quality. Winners get an expense-paid trip for two to the Commodity Classic on March 9-11, 2023, in Orlando, Florida. Winners also get recognition at the ASA Awards Banquet at Commodity Classic. Find out more details at soygrowers.com.
| Rural Advocate News | Monday June 27, 2022 |
Monday Watch List Markets Back from the weekend, a report on U.S. durable goods orders for May is due out at 7:30 a.m. CDT Monday, followed by a May pending home sales index at 9 a.m. USDA's weekly grain export inspections is due out at 10 a.m. with traders interested to see if soybean shipments can pick up. At 3 p.m., USDA's Crop Progress report will be out with updates of the latest crop condition ratings. Weather A cold front that swept through the country over the weekend is slowing down and will stall across the South on Monday. Periods of showers will form along the front through the week. Much more seasonable temperatures have filled in behind the front, eliminating the extreme heat of the last couple of weeks. While scattered showers and cooler temperatures that came with the front will reduce stress in some areas, there are pockets of dryness continuing to build in the heartland of the country.
| Rural Advocate News | Friday June 24, 2022 |
USTR Says Tariffs Give U.S. “Leverage” on China The U.S. has tariffs in place on over $300 billion worth of Chinese imports. U.S. Trade Representative Katherine Tai says those duties give the U.S. significant leverage on China, making them useful when negotiating with the Asian nation. Bloomberg says a debate is ongoing among members of the Biden administration on whether to keep those tariffs in place for the time being. “The China tariffs, in my view, are a significant piece of leverage, and a trade negotiator never walks away from leverage,” Tai said during Senate testimony. Biden recently said he’s in the process of deciding on whether to remove any of the duties first put in place by President Trump in 2018. Tai also points out that removing the tariffs would have a limited impact on the rapid rise in inflation. Earlier this month, Treasury Secretary Janet Yellen said that a reduction in duties may help bring down prices. *********************************************************************************** Iowa State University Report Says No Price Gouging on Fertilizer A report from Iowa State University says fertilizer prices are four times higher than they were in 2020. While crop prices have doubled during the same period, higher fertilizer prices are contributing to rising costs in farm country. Iowa’s Attorney General requested the ISU report in February while questioning the justification of higher prices. Yahoo News says the six economists who wrote the report found no conclusive evidence that fertilizer companies are artificially inflating prices. The 58-page report says price increases are tied several factors, like supply chain disruptions, disease outbreaks, and many other factors. “We aren’t saying there’s no market manipulation at all,” says Chad Hart, an ISU economist. “We just can’t tease out if it was one of the components.” The ISU Center for Agricultural and Rural Development says researchers need more data to determine if companies are raising prices far beyond the level needed to offset rising costs. *********************************************************************************** Some G-7 Leaders to Push for Temporary Waivers on Biofuel Mandates Leaders from the G-7 countries will meet on Sunday, and biofuel mandates will be among the discussion topics. Officials from Germany, Britain, and other G-7 members will push for temporary waivers on biofuel mandates to combat rapidly rising food prices. Reuters says the food crisis sparked by the Ukraine war has led to a food versus fuel debate among certain G-7 countries. Some policymakers are asking to ease mandates for blending biofuels into gasoline and diesel to increase the supply of global grain and vegetable oil. A British government official told Reuters, ”We’re quite keen to look at the issue of biofuel mandates to ensure that crops are prioritized for food consumption and not necessarily for use in fuels.” It’s not known ahead of the meeting on Sunday if there is enough support to temporarily waive biofuel mandates among the G-7 members. Talks are said to be in the preliminary stages. *********************************************************************************** North American-Owned Grain Terminals Hit in Ukraine Two grain terminals owned by companies in North America were hit by a Russian attack in Ukraine. The University of Illinois’ farm policy news website says Canadian agribusiness Viterra, and U.S. grain trader Bunge said they had a grain terminal hit on Wednesday. Viterra reported that it had a terminal on fire. While there were no casualties, Viterra did say one employee was injured at the plant, which had been closed since Russia’s invasion began. The attack on Wednesday is also the second time Bunge has been targeted. Ukraine’s grain exports have dropped significantly from last year. During the first 22 days of June, exports were down 48 percent from 2021 at 907,000 tons. Russia is preventing shipments from Ukraine’s Black Sea ports, trapping thousands of tons of grain in the country. Experts say setting up alternative export routes won’t be sufficient enough quantities to keep up with global food demand. *********************************************************************************** Smithfield Foods Ranked on LinkedIn’s List of Top Companies Smithfield Foods was named to LinkedIn’s Top Companies: Industry Edition List. Smithfield is ranked as one of the best workplaces for professionals to grow their careers in nine U.S. industries, including financial services, retail and consumer goods, and several others. “We take pride in being an industry leader at Smithfield and are honored that LinkedIn recognized our ongoing efforts to be an employer of choice,” says Keira Lombardo, chief administrative officer with Smithfield. “Our people are our greatest asset. Supporting our team members and their career growth continues to be a top priority for our company.” The LinkedIn platform’s Top Companies: Industry Edition List is designed to celebrate people and companies with more than 500 employees that are making an impact in the professional world. The platform’s methodology assesses data driving insight into company attributes, like professionals’ ability to advance, skills growth, company stability, external opportunity, company affinity, and others. *********************************************************************************** U.S. Domestic Honey Production Falls and Imports Rise U.S. honey production has dropped by 1.4 percent per year during the past three decades, while honey imports have grown by 7.6 percent every year, so imports have been filling the domestic supply deficit. Imports have exceeded domestic honey production since 2005 and accounted for 74 percent of U.S. honey supplies in 2021. The top three foreign suppliers are India, Vietnam, and Argentina, and together they supply more than 71 percent of the total imports. Honey imports grew as domestic consumption of honey and honey-sweetened products increased. The expansion reached an all-time high last year when domestic production was at its lowest volume since 1991. During 2021, production in all three of the major honey-producing states, including North Dakota, South Dakota, and California, were 25 percent below 1991 levels, while production in the rest of the U.S. declined by almost half during the same period. Shrinking market production was mainly due to decreased honey production per colony.
| Rural Advocate News | Friday June 24, 2022 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, followed by the University of Michigan's final estimate of U.S. consumer sentiment in June. At 2 p.m. CDT, USDA releases its June 1 estimate of cattle on feed with Dow Jones analysts looking for a 1.5% increase from a year ago. As usual, weather and outside markets will also get their fair share of attention. Weather Temperatures are increasing across much of the eastern half of the country Friday ahead of a storm system building in the Canadian Prairies and Northern Plains. That system will produce widespread showers and thunderstorms across the North-Central U.S. and Canada Friday into Saturday with the front continuing to track southeast through the rest of the weekend and early next week. While heat builds ahead of the front, it will fall off significantly behind it with temperatures below normal for a couple of days. Rainfall amounts will be spotty but could be heavy in localized areas.
| Rural Advocate News | Thursday June 23, 2022 |
Biden Proposes Federal Gas Tax Holiday President Joe Biden Wednesday called on Congress and states to provide direct relief to consumers facing increased gas and diesel prices. The price of gas is up dramatically around the world, and by almost $2 per gallon in America, the White House says, “since Putin began amassing troops on the border of Ukraine.” The federal government charges an 18-cent tax per gallon of gasoline and a 24-cent tax per gallon of diesel. Those taxes fund highways and public transportation, through the Highway Trust Fund. But with gas prices near $5 a gallon on average across the country, President Biden is calling on Congress to suspend the gas tax for three months – until the end of September – to give Americans a little extra breathing room as they “deal with the effects of Putin’s war in Ukraine.” The President is also calling on Congress to ensure that a gas tax holiday has no negative effect on the Highway Trust Fund. *********************************************************************************** Senate Ag Committee Passes Meat Packing Special Investigator Act The Senate Agriculture Committee Wednesday passed the bipartisan Meat Packing Special Investigator Act. The legislation will address anticompetitive practices in the meat and poultry industries. Senator Chuck Grassley says, “With the passage of this bill, my years-long beef with Big Cattle is one step closer to being settled.” The legislation would create the Office of the Special Investigator for Competition Matters within USDA’s Packers and Stockyards Division. The special investigator will have a team of investigators, with subpoena power, dedicated to preventing and addressing anticompetitive practices in the meat and poultry industries and enforcing antitrust laws. The committee also passed the Cattle Price Discovery and Transparency Act. National Cattlemen’s Beef Association Vice President of Government Affairs Ethan Lane responded, “creating a duplicative, bureaucratic new special investigator role is the wrong approach.” National Farmers Union President Rob Larew says the committee action “is a welcome move towards boosting enforcement of competition laws that get to the bottom of abusive market practices.” *********************************************************************************** Dairy Farmer Calls for FMMO Update During Farm Bill Hearing A dairy farmer told lawmakers this week the next farm bill needs milk pricing improvements. Seventh-generation Pennsylvania dairy farmer Lolly Lesher, a member of Dairy Farmers of America, testified on behalf of the cooperative and the National Milk Producers Federation during a congressional review of dairy provisions in the Farm Bill. Lesher highlighted the need for improvements to the Federal Milk Marketing Order system, as evidenced by the heavy revenue losses incurred by dairy farmers nationwide from a milk pricing change made in the previous farm bill. She says, “The change made to the Class I mover combined with the government’s heavy cheese purchases cost dairy farmers over $750 million in revenue in the last six months of 2020 alone.” The dairy industry is seeking consensus on a range of FMMO improvements, including the Class I mover, that can be taken to USDA for consideration in a federal order hearing. *********************************************************************************** NPPC Welcomes Biden Administration Siding with Farmers on Prop 12 The National Pork Producers Council welcomed a Supreme Court brief filed by the Biden administration in favor of ag groups regarding California’s Proposition 12. The state law seeks to ban the sale of pork from pigs that do not meet the state’s arbitrary production standards, including pork from pigs raised on farms outside of California. NPPC assistant vice president and general counsel Michael Formica says, “We commend the Biden administration for taking action to stop ill-considered ballot initiatives like California’s Proposition 12.” In a joint brief to the Supreme Court filed earlier this month, NPPC and the American Farm Bureau Federation argued Proposition 12 violates the U.S. Constitution’s commerce clause, which restricts states from regulating commerce outside their borders. The brief states that Proposition 12 “will require massive and costly changes across the entire $26-billion-a-year hog farming industry. And it inescapably projects California’s policy choices into every other state, a number of which expressly permit their farmers to house sows in ways inconsistent with Proposition 12.” *********************************************************************************** Clean Fuels Outlines Industry’s Beneficial Impact on Fuel Prices Clean Fuels Alliance America Wednesday touted the benefits of biodiesel when it comes to the price at the pump to President Joe Biden and leaders in Congress. In a letter to the president and lawmakers, the organization says U.S. biodiesel and renewable diesel producers are working to extend fuel supplies and provide relief at the pump to American families. The letter expresses appreciation for the administration’s recent actions to grow Renewable Fuel Standard volumes for advanced biofuels and biomass-based diesel and provide additional infrastructure grants to improve consumer access to biodiesel. The letter states, “Our partners in the agriculture industry are investing more than $4 billion to expand the supply of renewable oils for both food and clean fuels.” The letter further highlights a recent study from the World Agricultural Economic and Environmental Service showing that U.S. biodiesel and renewable diesel production generates a four percent decrease in the price of diesel fuel. *********************************************************************************** Honey Imports Continue to Rise, Offsetting Declining U.S. Production U.S. imports of honey continue to rise as U.S. production declines. New data from USDA Economic Research Service shows imports have exceeded domestic honey production since 2005 and accounted for 74 percent of total U.S. honey supplies in 2021. Over the last 30 years, U.S. honey production has declined by around 1.4 percent per year, while honey imports have grown by 7.6 percent per year, filling the domestic supply deficit. The top three foreign suppliers—India, Vietnam, and Argentina—supply more than 71 percent of imported honey. Honey imports have expanded with rising domestic consumption of honey and honey-sweetened products. This expansion reached an all-time high in 2021, when domestic production was at the lowest volume since 1991. In 2021, production in all three major honey-producing States—North Dakota, South Dakota, and California—were 25 percent lower than their 1991 levels, while production in the rest of the states declined by almost half during the same period.
| Rural Advocate News | Thursday June 23, 2022 |
Thursday Watch List Markets The U.S. Labor Department reports on weekly jobless claims at 7:30 a.m. CDT, the same time the U.S. Drought Monitor will be updated. At 9:30 a.m., the Energy Department's weekly inventory report, including ethanol production will be out, followed by USDA's monthly cold storage report at 2 p.m. CDT. Grain traders continue to inspect the latest weather forecasts and will keep an eye on outside markets and further Fed comments. Weather A section of an old front remains around Kansas that will be active with showers and thunderstorms on Thursday. Heat is advancing northward through the Plains and may bring some isolated showers to the Northern Plains. The heat comes ahead of the next system that is building in the Canadian Prairies. The far south remains hot with heat advisories and warnings still in place.
| Rural Advocate News | Wednesday June 22, 2022 |
Number of U.S. Farms Continues Slow Decline New data released Tuesday from USDA’s Economic Research Service shows the number of U.S. farms continues to decline slowly. After peaking at 6.8 million farms in 1935, the number of U.S. farms and ranches fell sharply through the early 1970s. Rapidly falling farm numbers in the mid-20th century reflected the growing productivity of agriculture and increased nonfarm employment opportunities. Since then, the number of U.S. farms has continued to decline, but much more slowly. In 2021, there were 2.01 million U.S. farms, down from 2.20 million in 2007. With 895 million acres of farmland nationwide in 2021, the average farm size was 445 acres, only slightly greater than the 440 acres recorded in the early 1970s. Meanwhile, technological developments in agriculture have influenced changes in the farm sector. Innovations have enabled continuing output growth without adding much to inputs. As a result, total farm output nearly tripled between 1948 and 2019. *********************************************************************************** Growers Disappointed Supreme Court Decides Not to Hear Glyphosate Case Agriculture groups expressed disappointment regarding a Supreme Court decision denying consideration of the case Monsanto v. Hardeman, which pertains to state glyphosate health warnings. A coalition of groups issued a joint statement regarding the decision Tuesday, including the American Farm Bureau Federation, American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, and National Cotton Council. The joint statement claims, “We are disappointed the Supreme Court has decided not to hear this case, which has significant implications for our global food supply and science-based regulation.” On May 23, the groups sent a letter signed by 54 agricultural groups to President Biden urging him to withdraw a Solicitor General’s brief submitted to the Supreme Court advising against taking up the case. The Solicitor General’s brief argues federal pesticide registration and labeling requirements do not preclude states from imposing additional labeling requirements, even if those requirements run counter to federal findings. *********************************************************************************** Rural Bankers Expecting Recession Rural bankers say they anticipate a U.S. recession, according to the latest Creighton University Rural Mainstreet Index. The region's overall reading for June slumped to 49.8, its lowest level since September 2020, and down from May's 57.7. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. Approximately 92.9 percent of rural bankers surveyed rate the likelihood of a U.S. recession above 50 percent. Only 7.1 percent rated a recession probability below 50 percent. However, on average, bank CEOs expect net farm income for grain farmers to be 12.6 percent above 2021 levels. The region's farmland price index for June advanced to 76.8 from May's 72.0, marking the 21st straight month that the index has moved above growth neutral. The June farm equipment-sales index climbed to 71.4 from May's healthy 66.9. This was the 19th straight month that the index has advanced above growth neutral. *********************************************************************************** USDA Trade Mission Underway in London U.S. Department of Agriculture Deputy Secretary Dr. Jewel Bronaugh (Bro-NAW) arrived Tuesday in London to launch a USDA agribusiness trade mission to the United Kingdom. Bronaugh is joined by a delegation of representatives from U.S. agribusinesses, farm organizations and state departments of agriculture, who are interested in exploring export opportunities in the United Kingdom. Bronaugh says, “The United Kingdom is a valued trading partner whose consumers demand the best quality products at a competitive price,” adding, “I’m excited for mission participants to engage with potential customers for their world-class agricultural products.” In 2021, the United Kingdom imported $1.9 billion of U.S. agricultural products, according to USDA. Trade mission participants engage directly with potential customers, receive in-depth market briefings, and participate in site visits. The USDA-sponsored trade mission to the United Kingdom is one of four international trade missions Agriculture Secretary Tom Vilsack announced in March. The United Kingdom trade mission concludes later this week. *********************************************************************************** USDA Announces Awards for Dairy Innovation Initiatives The Department of Agriculture this week announced $80 million in awards under the Dairy Business Innovation Initiatives. The awards support processing capacity expansion, on-farm improvements, and technical assistance services to producers. The funds are being awarded non-competitively to the four current Dairy Business Innovation Initiatives at the California State University Fresno, the University of Tennessee, Vermont Agency of Agriculture, Food & Markets, and the University of Wisconsin. Additionally, USDA announced $22.9 million through a Request for Applications for funding provided by fiscal year 2022 appropriations to support the same Initiatives. The awards were made possible by supplemental funds from the American Rescue Plan Act. Jenny Lester Moffitt, USDA Undersecretary for Marketing and Regulatory Programs, says, "The Dairy Business Innovation Initiatives have proven to be an invaluable resource for dairy farmers and businesses because of their ability to provide targeted resources and funding through sub-awards at the local and regional level, maximizing impact." *********************************************************************************** Canada Cattlemen Oppose Warning Labels on Ground Beef Canadian Cattle producers are raising concerns with Health Canada’s proposed regulations to put a front-of-package warning label on ground beef. The proposal from Health Canada is part of several changes to Canada's Food and Drug Regulations. The changes would require the usage of warning labels for foods high in sodium, sugar or saturated fat. If Health Canada moves forward with the proposed regulation, Canada will be the only country in the world to put a warning label on ground beef. This move would likely impact consumer confidence and be damaging to Quebec and other beef producers across the country. Approximately 90 percent of Canadians eat ground beef weekly, and adding a warning label on ground beef would send the wrong signal to Canadian consumers, according to the Canadian Cattlemen’s Association. Philippe Alain, CCA board member from Quebec, says, “The proposed policy change by Health Canada is misguided and will mislead consumers.”
| Rural Advocate News | Wednesday June 22, 2022 |
Wednesday Watch List Markets Traders will continue to watch the latest weather forecasts, check for any export sales, while keeping an eye on Ukraine and outside markets. There are no significant reports out Wednesday and the Energy Department's weekly energy inventories will be out Thursday morning, due to this week's holiday schedule. Weather A cold front continues to move eastward across the Midwest on Wednesday with scattered showers from Kansas eastward through the Ohio Valley. Storms farther east could be strong to severe. Heavy rain also continues in the southern Rockies for the next few days, sometimes leaking into the High Plains as well, but overall showers are light. Heat continues south of the front for another day with heat advisories posted in spots from the Southern Plains to the Southeast and even ahead of the front in the Ohio Valley.
| Rural Advocate News | Tuesday June 21, 2022 |
Tuesday Watch List Markets Back from a three-day weekend, traders will catch up on the latest weather forecasts, news from Ukraine and anything affecting outside markets. A report on U.S. existing home sales for May is due out at 9 a.m. CDT Tuesday, followed by USDA's weekly grain export inspections at 10 a.m. At 3 p.m., USDA's Crop Progress report will give an update on crop conditions and winter wheat harvest progress. Weather Heat that has built back into much of the country over the long holiday weekend continues across the South and eastern Midwest on Tuesday. A cold front pushing through the Midwest and into the Central Plains will bring temperatures down a few degrees. While it will have a few showers, they will be more limited today than what occurred in the Northern Plains on Monday.
| Rural Advocate News | Monday June 20, 2022 |
Red Meat Exports Add Value to Corn and Soybean Producers Record-level red meat exports of 18.7 billion dollars in 2021 had a major impact on the corn and soybean industries. An independent study by the Juday Group quantified the returns that red meat exports brought to corn and soybean producers in 2021 nationally and at state levels. Key findings from the 2021 export data showed that beef and pork exports accounted for 537 million bushels of corn usage, equating to 2.94 billion dollars. Pork exports accounted for 99.3 million bushels of soybean usage nationwide or the equivalent of 2.36 million metric tons of soybean meal worth 1.3 billion dollars. Beef and pork exports accounted for 3.4 million tons of DDGS usage, equating to 716 million dollars. “Beef and pork exports drive value directly back to the farm, and this study helps confirm the return on investment for all corn and soybean producers,” says U.S. Meat Export Federation Chair-elect and Iowa producer Dean Meyer. *********************************************************************************** Growers Frustrated with EPA Regarding Pesticide Impacts American farmers are again at odds with the Environmental Protection Agency over the Endangered Species Act. The final EPA biological evaluations of neonicotinoids (Nee-oh-ni-KOH-ti-noids) and their impacts on endangered species are overly conservative and don’t use all available data. Grower groups like the American Soybean Association and the American Farm Bureau Federation are concerned the evaluations drastically overstate the impact of the pesticides on endangered species and their habitats. The groups say the evaluations for several neonicotinoid pesticides don’t incorporate scientific and commercial data that could have provided a more realistic picture of the potential impacts of the chemistries on different species. The groups pointed out the shortcomings during the public comment period, but EPA doubled down on the final evaluations. “Growers have, time-and-again, pointed EPA to real-world data to improve their endangered species assessments,” says American Soybean Association President Brad Doyle. “The agency has again chosen to disregard the data.” *********************************************************************************** Ag Groups Support the Ocean Shipping Reform Act Ag groups positively reacted to President Biden signing the Ocean Shipping Reform Act, which will address the supply chain and shipping port issues hampering U.S. exports. “Exports add significantly to the bottom line of each producer,” says National Pork Producers Council President-Elect Scott Hayes. “More assurances that exports get safely to their destination is a big win for agriculture.” American Farm Bureau President Zippy Duvall personally spoke to President Biden last week about the legislation. “Addressing congestion at our ports and creating greater accountability for shipping companies is a positive step,” Duvall says. The National Milk Producers Federation and the U.S. Dairy Export Council both applauded the bill getting signed into law. “We’re asking the Federal Maritime Commission to implement these rules quickly and begin to conduct the new oversight to end the unfair practices that have impeded American dairy products from efficiently getting to their overseas customers,” says NMPF President Jim Mulhern. *********************************************************************************** USDA Receives Overwhelming Interest in Climate-Smart Commodities The USDA says the second funding pool through the Partnerships for Climate-Smart Commodities opportunity received over 600 applications from more than 400 groups. While USDA is calculating the final numbers, the overall interest in the opportunity already exceeds more than $18 billion. “The results of the second funding pool clearly demonstrate the strong demand in the U.S. agriculture and forestry industry for solutions that expand markets for American producers and forest landowners, particularly those that are small or historically underserved,” says USDA Undersecretary for Farm Production and Conservation Robert Bonnie. “The second round of funding received significantly more applications than the first, and we’re looking forward to going through the large pool of applications.” The second funding pool was designed to support proposals between $250,000 and $5 million that emphasize the enrollment of small and-or underserved producers. The proposals could also include monitoring, reporting, and verifying activities developed at minority-serving institutions. *********************************************************************************** U.S. Dairy Industry Signs MOU to Continue Sustainability Commitment The USDA and the Innovation Center for U.S. Dairy signed a Memorandum of Understanding to continue working toward the dairy industry’s 2050 environmental stewardship goals. The MOU also addresses growing consumer demand for food produced in a way that’s good for the planet. The MOU extends and builds upon a pact originally signed in 2008. “In renewing this agreement with the Innovation Center for U.S. Dairy, USDA is recommitting to our vital work with dairy farmers to reduce methane emissions and improve the sustainability of their operations,” says USDA Deputy Secretary of Agriculture Jewell Bronaugh (bro-NAW). “We’ve seen tremendous interest in the production of climate-smart commodities, and the dairy industry is on the leading edge of that effort. The MOU builds on that effort” The Innovation Center’s 2050 environmental stewardship goals include achieving GHG neutrality, optimizing water use while maximizing recycling, and improving water quality by optimizing utilization of manure and nutrients. *********************************************************************************** Cattle Industry Fighting SEC Climate Rule The National Cattlemen’s Beef Association filed comments on the Securities and Exchange Commission’s controversial greenhouse gas disclosure rule. The rule would require publicly-traded companies to disclose their direct, energy-electricity consumption, and supply chain emissions, creating a burden on cattle producers who supply beef to publicly-traded processors, restaurants, and retailers. “With cattle producers facing record inflation, rising input costs, and labor shortages, another bureaucratic rule is a burden we cannot afford,” says NCBA President Don Schiefelbein. “Policymakers should be focused on lowering costs and solving real problems facing agriculture, not creating more complex rules that require a team of lawyers to understand.” While the proposal is aimed at public companies, it would place a burden on cattle producers who supply beef to public entities. The federal government has also acknowledged that accurately calculating emissions on the farm or ranch level is impossible. EPA and USDA metrics are already calculated and should satisfy federal regulators.
| Rural Advocate News | Friday June 17, 2022 |
Mixed Reaction to House Passage of Special Investigator Bill The National Cattlemen’s Beef Association expressed strong disappointment after the House of Representatives passed the Lower Food and Fuel Costs Act. Their disappointment is because the bill incorporates the Meat and Poultry Special Investigator Act. NCBA VP of Government Affairs Ethan Lane says Congress is focused on political posturing through the Special Investigator Bill. NCBA says the investigator position will duplicate the work already being done by other federal agencies. House Ag Chair David Scott says the bill will ensure fair competition in the meat and poultry sectors, increase options at the pump, and provide support to America’s ag sector and food supply chain. The bill will permanently lift barriers to year-round sales of E15, something Growth Energy says would enable more access to a lower-cost, lower-emission option for hardworking families. “We’ve recently seen E15 deliver savings approaching 60 cents per gallon in some parts of the country,” says CEO Emily Skor. *********************************************************************************** House GOP Bill Targets Biden Ag Policies House Ag Committee Ranking Member Glenn Thompson of Pennsylvania introduced a bill this week that Fox News says would “strike back” at several of the administration’s agricultural policies. It would also strike down a recently-proposed rule from the Securities and Exchange Commission that could potentially harm small farms. Thompson is introducing the bill with more than 20 cosponsors during a time when America is dealing with significant inflation, especially in food prices. The bill has several provisions that Thompson says would help in many ways, including rescinding the SEC Scope Three reporting rule. The rule requires public companies to report information like it’s carbon emissions but also from sources up and down their supply chains. Thompson’s bill also includes several provisions relating to fertilizer, including reinstating the National Environmental Policy Act of 2020, which would streamline mineral extraction for fertilizer production. The bill also reinstates the Trump-era Waters of the U.S. rule. *********************************************************************************** Eggs Costing $12 Per Dozen is “Unrealistic” There’s no question a highly-contagious bird flu outbreak is reducing the size of the U.S. chicken flock and driving up the cost of eggs nationwide. Some social media claims say USDA predicts eggs will be $12 per dozen by this fall. Jennifer Smits, director of communications for the USDA’s Economic Research Service, says that USDA isn’t predicting eggs will be $12 per dozen later this year. Smith points out in USA Today that while the ERS does predict and follow agriculture and food trends, they don’t forecast specific retail egg prices. As of June 10, Federal Reserve economic data says the average price of a dozen Grade A large eggs in the U.S. was $2.86, and prices are predicted to dip to $1.70 per dozen in the fourth quarter of 2022. The inconsistent supply of eggs is driving up the cost this year, while overall food prices are 9.4 percent higher than 2021. *********************************************************************************** Arkansas Signs Major Pact with Israel Israel, which has recently become a world leader in agricultural technology, signed a major economic pact with Arkansas. The two will share their research and technology, especially for agriculture, and that will broaden a trade relationship that’s already worth hundreds of millions of dollars. Trade between them last year reached more than $100 million dollars. Both sides have also benefited from agricultural and scientific research grants worth more than $400,000 since their partnership started in 2017. The Washington Free Beacon says a 2019 review of one agricultural grant between the two sides shows an economic partnership during the past four decades that’s added billions to the U.S. economy. Though much of Israel is desert and lacks water, the country has learned to grow some of the highest-yielding agricultural products, including tomatoes and cow’s milk. Agriculture is Arkansas’s largest industry, adding approximately $16 billion to the state’s economy every year. *********************************************************************************** Brazil Expecting Large Second-Corn Crop Despite Weather Concerns Brazil’s second corn crop, called the safrina crop, is predicted to produce 3.4 billion bushels during the 2021-2022 crop season. Farmdoc from the University of Illinois says that’s 45 percent higher than the 2.4 billion harvested last year when drought hit Brazil. A harvest of 3.4 billion bushels this year would set a record. Data from Conab says the country may produce a historic crop even though April and May were drier than normal. The overall harvest of the second-corn crop is less than 10 percent complete. This year’s second-corn harvest began in Mato Grosso (MAH-toe GRAHS-so), the largest corn producer in Brazil, which accounts for almost half of the country’s production. Approximately 16 percent of the corn harvest in Mato Grosso is complete as of June 10, and yields are expected to be around 97.5 bushels an acre. Parana, the second-largest corn producer, currently has 80 percent of its fields in good condition. *********************************************************************************** FSA Accepting Nominations for County Committees The USDA’s Farm Service Agency is now accepting nominations for local county committee members. County committee members make important decisions about how federal farm programs get administered on a local level. All of the nomination forms for the 2022 election must be postmarked or received in the local FSA office by August 1. “it’s a priority for USDA to integrate equity into its decision-making and policymaking,” says FSA Administrator Zach Ducheneaux. “That starts with our local county committees.” He also says they’re looking for enthusiastic, diverse leaders willing to serve other agricultural producers. Ag producers who participate or cooperate in a USDA program and reside in the Local Administrative Area that’s up for election can be nominated for candidacy. A cooperating producer is someone who has provided information about their farming or ranching operations to FSA, even if they haven’t applied for or received program benefits. Nationwide, 7,000 people serve on various county committees.
| Rural Advocate News | Friday June 17, 2022 |
Friday Watch List Markets The Federal Reserve's report on industrial production in May is due out at 8:15 a.m. CDT Friday, followed by the Conference Board's U.S. index of leading indicators at 9 a.m. Traders will remain attuned to the latest weather forecasts, any news of an export sale, updates from Ukraine and the stock market. U.S. futures markets close at their normal times Friday and open next at 7 p.m. CDT Monday, allowing for a new national holiday, Juneteenth. Weather A frontal boundary became active over Missouri and Illinois Thursday night. Thunderstorm clusters are strong early Friday morning and pushing southeast into the Tennessee Valley. We will likely see that continuing through to the Southeast throughout the day and may remain strong. Cool temperatures are building north of this cluster and front across the eastern Midwest. But heat is starting to build back across the Northern Plains, becoming very hot over the weekend.
| Rural Advocate News | Thursday June 16, 2022 |
Other Food Sectors Welcome Ocean Shipping Reform Act Agriculture groups responded positively to the passing of the Ocean Shipping Reform Act, along with industry representatives from the food and restaurant sectors. President Joe Biden was slated to sign the legislation into law Thursday (this) afternoon. The legislation should help address long-standing and systemic port disruptions impacting costs throughout the supply chain. Sean Kennedy of the National Restaurant Association says, “After months of advocating with our supply chain partners for these changes, we hope modernization of the Ocean Shipping Act will help reduce shipping costs and improve supply chain challenges.” Tom Madrecki with the Consumer Brands Association adds, “Decisive policy action is critical to combatting supply chain challenges as the consumer packaged goods industry continues to grapple with unprecedented production and shipping costs.” The association contends that the pandemic and subsequent disruptions highlighted the fragility of the complex supply chain system, the need to modernize decades-old ocean regulations, and unfair practices that hurt American manufacturers, farmers and consumers. *********************************************************************************** Farmers Union Urges Congressional Support Lower Food and Fuel Costs Act In a letter to Congress Wednesday, National Farmers Union expressed support for the Lower Food and Fuel Costs Act and urged Members to support the bill. The legislation, NFU says, will provide fairness to farmers, lower prices for consumers, and fight back against decades of consolidation in agriculture. House lawmakers are considering the legislative package Thursday (today). National Farmers Union President Rob Larew says, “Farmers Union members are in strong support of bolstering USDA’s ability to investigate consolidation in the livestock industry.” The legislation would create a special investigator’s office at the Department of Agriculture to explore the issue. However, that issue has House Republicans and Democrats divided on the legislation. National Farmers Union also supports the provisions to expand processing capacity that will offer ranchers more opportunities to get their products to their communities. Another provision of the bill would make year-round E-15 sales permanent, also supported by NFU. *********************************************************************************** APHIS Announces New Resources Aimed at Preventing ASF Spread USDA’s Animal and Plant Health Inspection Service Wednesday announced new efforts to prevent the introduction and spread of African swine fever in the United States. Through a campaign called Protect Our Pigs, APHIS will support pork producers, veterinarians, and pig owners with information and resources to help safeguard the swine population and the pork industry. APHIS is deploying a variety of outreach efforts to support these critical stakeholders. The new Protect Our Pigs page on the APHIS website will house materials such as downloadable fact sheets and posters, instructional videos, shareable social media graphics, a new interactive biosecurity guide, and offer the latest disease updates. Dr. Jack Shere, Associate Administrator at APHIS, says, “USDA is working every day to stop this disease from breaching our borders and the Protect Our Pigs campaign is just one of many ways we are doing that.” African swine fever is estimated to cost the U.S. $50 billion over ten years, if detected. *********************************************************************************** Vilsack Traveling to New Hampshire Friday Agriculture Secretary Tom Vilsack will visit New Hampshire Friday to tout work by the Biden Administration to transform the nation’s food system. Vilsack will join Senator Maggie Hassan, a New Hampshire Democrat, at Brookdale Fruit Farm, a local family-owned and operated farm. The farm is one of the state's largest retail, pick-your-own, and wholesale growers of fruits and vegetables. USDA says the event will underscore its commitment to increase competition, bolster access to healthy, affordable food, ensure growers and workers receive a greater share of the food dollar, and advance equity as well as climate resilience and mitigation. In addition, Vilsack will make an announcement to help reduce costs for farmers and support local economies by providing funding to cut regulatory costs and increase market opportunities for farmers. That action, USDA says, will help build fair and transparent food systems rooted in local and regional production and create jobs. *********************************************************************************** Bronaugh to Lead United Kingdom Trade Mission Representatives from 37 U.S. agribusinesses and farm organizations will join Department of Agriculture Deputy Secretary Dr. Jewel Bronaugh for an agribusiness trade mission to London, June 22-24. Participants will engage directly with foreign buyers, receive in-depth market briefs from the Foreign Agricultural Service and industry trade experts, and participate in site visits. Bronaugh says, “I’m very excited to lead a delegation to the United Kingdom, one of our top trading partners,” adding, “The United Kingdom presents strong marketing opportunities for many U.S. consumer-oriented products.” U.S. agricultural exports to the United Kingdom totaled $1.9 billion in 2021. In addition to representatives from the following companies and organizations, Bronaugh will be joined by officials from the Georgia, Indiana, Maine, Massachusetts, Montana, New Mexico, North Dakota, Oregon, Pennsylvania, Texas, Washington, and Wisconsin departments of agriculture. The USDA-sponsored trade mission to the U.K. is one of four international trade missions Agriculture Secretary Tom Vilsack announced in March. *********************************************************************************** Argentina Not Likely to Increase Wheat Exports It appears Argentina won’t be able to capitalize on the interruption of wheat supplies from the Black Sea, according to AgriCensus, a London-based Price Reporting Agency. The agency says weather, inflation and political uncertainty all combine to be detrimental to wheat exports for the nation. Argentine farmers face dry conditions with the second consecutive La Nina and worries of a third consecutive event. Initial estimates have the 2022/23 crop size at 20.5 million metric tons, down from the previous crop year’s record high of 22.4 million metric tons, with further cuts possible. Argentine farmers are reportedly cutting wheat acres in favor of barley, which is cheaper to grow. Input costs are another factor, as one analyst tells the agency, "This year there are going to be less hectares planted with wheat and less use in fertilizers this season." And the Argentine government has imposed a series of protective measures to tackle ever-rising domestic inflation levels in the country.
| Rural Advocate News | Thursday June 16, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is set for Thursday at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, U.S. housing starts in May and an update of the U.S. Drought Monitor. At 9:30 a.m., the U.S. Energy Department releases its weekly report of natural gas storage and at 2 p.m., USDA's monthly Livestock, Dairy and Poultry report will be released. Weather A front that has been working across the northern tier of the country over the past few days will continue to shift through the eastern Midwest on Thursday. The tail end of it has stalled across Nebraska and Kansas. Both sections of the front will be active today, with potential for severe storms. The front marks the difference between a mild north and hot south for Thursday. Strong winds that flowed across the Northern Plains on Wednesday continue across the northern Midwest on Thursday, though not quite as strong.
| Rural Advocate News | Wednesday June 15, 2022 |
Farm Groups Welcome Passage of Ocean Shipping Reform Act The House of Representatives Monday sent the Ocean Shipping Reform Act to President Biden for signature. Agriculture groups responded positively, heralding the legislation that improves the oversight of ocean shipping. The bill will address many maritime disruptions obstructing the import and export of U.S. products at American ports over the past several years. American Farm Bureau Federation President Zippy Duvall says, “I was pleased to team up with President Biden to urge passage and look forward to him quickly signing the Ocean Shipping Reform Act.” U.S. Meat Export Federation President and CEO Dan Halstrom welcomed the passage, saying, “This legislation takes important steps forward in improving the shipping services available to U.S. exporters.” American Feed Industry Association CEO Constance Cullman adds, “passage of the Ocean Shipping Reform Act signals a course correction that will enable our industry to continue providing these essential goods to the global marketplace in a timely, cost-efficient way.” *********************************************************************************** USDA Extends Comment Period on Fertilizer Supply Chain Issues The Department of Agriculture Tuesday extended the comment deadline regarding its “Access to Fertilizer: Competition and Supply Chain Concerns” Federal Register notice. Published in the Federal Register in March, the previous deadlines for comments were May 16, and June 15, 2022. USDA extended the comment deadline another month to July 15, 2022. Andy Green, USDA's Senior Advisor for Fair and Competitive Markets, says the new deadline allows "commenters to provide additional feedback regarding the role of capacity expansion and related strategies to directly enhance competition in the fertilizer market." Through the effort, USDA is seeking information on what obstacles exist to financing and developing new fertilizer capacity, expanding fertilizer manufacturing, and what other threats the fertilizer sector faces. In March, USDA announced plans for a $250 million investment in grants to support additional fertilizer production for farmers to address rising costs and spur competition. Fertilizer prices have more than doubled since last year. *********************************************************************************** Rep. Sharice Davids Assigned to House Ag Committee The House Democratic Steering and Policy Committee recommended Representative Sharice Davids to join the House Agriculture Committee this week. The Kansas Democrat says, “I’m honored to have the opportunity to serve Kansans on the Agriculture Committee, especially as we gear up to consider the next Farm Bill.” Kansas Farm Bureau President Rich Felts says, “I know Representative Davids will be a strong voice on the committee for her constituents and Kansas agriculture” for the remainder of the current session of Congress. House Agriculture Committee Chairman David Scott says, “I am pleased to welcome her voice to our Committee.” Davids continues to serve as Vice-Chair of the Transportation and Infrastructure Committee and on the Small Business Committee, chairing the Subcommittee on Economic Growth, Tax, and Capital Access. The recommendation now goes to the full Democratic Caucus for approval. If approved, Davids will join Kansas Republican Representative Tracey Mann on the Committee. *********************************************************************************** Federal Government Primary Funder of US Ag Research The Federal Government provides 64 percent of public agricultural research and development funding in the United States. USDA’s Economic Research Service released new data on ag research Tuesday. The data shows state governments and non-governmental sources, including funds generated by universities, account for the other 36 percent of funds for public agricultural R&D. Federal funds are delivered via external grants to universities and other cooperating institutions, and through appropriations to USDA agencies. Most of the federal funding for agricultural research performed by non-Federal institutions is managed by USDA's National Institute of Food and Agriculture. NIFA allocates the funds through grants to land grant and minority-serving institutions and through competitive grants open to all universities. Of the $1.6 billion in agricultural research by USDA research agencies, about $165 million was allocated to cooperative research agreements with universities. The National Science Foundation, National Institutes of Health, and other federal agencies are also important funders of agricultural research and development. *********************************************************************************** USDA Strengthens Partnerships with 1890s Universities Agriculture Secretary Tom Vilsack and Dr. Paul Jones, Chair of the 1890s Presidents Council, signed a Memorandum of Understanding (MOU) to reaffirm and strengthen their ongoing relationship. The 1890s Presidents Council is an organization comprised of presidents and chancellors of historically Black colleges and universities. The MOU also establishes a new 1890 Task Force that will inject energy into USDA's efforts to collaborate with 1890s institutions in the food, agriculture and forestry sectors. The MOU signing followed discussions between USDA leadership and the 1890s Presidents Council as part of continued engagement and discussions with higher education associations to enhance USDA partnerships and investments with Minority-Serving Institutions. Secretary Vilsack states, "This signing reinforces USDA's commitment to our partners at the 1890s institutions." The 1890 Land-Grant institutions were established under the Second Morrill Act of 1890. USDA has a long history of investing in and supporting the nation's 1890 Land-Grant Institutions, which have been leaders in scientific innovation. *********************************************************************************** ASTA Releases Cover Crop, Conservation Resource The American Seed Trade Association released an updated tool for farmers and landowners this week. ASTA updated a guide that helps farmers easily locate and contact professional seed suppliers for quality environmental, conservation, and cover crop seed. The interactive Conservation, Environmental, and Cover Crop Seed Resource Guide allows buyers to find lists of specific seed types by geographic location to support production and sustainability goals. ASTA President & CEO Andy LaVigne says, “Professionally produced and processed seed is designed to help farmers achieve success through managing the use of the right seed, at the right place, at the right time.” Professionally produced seeds are selected, harvested, cleaned, analyzed, processed, packaged for performance, and tested for purity and germination. Those steps, LaVigne says, “helps ensure you get the best quality seed to meet your production and sustainability goals.” You can find the resource on the ASTA website, betterseed.org.
| Rural Advocate News | Wednesday June 15, 2022 |
Wednesday Watch List Markets A report on U.S. retail sales in May is set for Wednesday at 7:30 a.m. CDT. The U.S. Energy Department releases its weekly report of energy inventories, including ethanol production at 9:30 a.m. The latest weather forecasts remain important to traders and everyone is leery of outside market influences with the Federal Reserve's announcement and expected rate hike due out at 1 p.m. CDT Wednesday. Weather A front moving across the North-Central U.S. continues to produce areas of showers and thunderstorms. On Wednesday, storms will be concentrated in the Upper Midwest and may be strong to severe from Iowa into Wisconsin and adjacent areas of Minnesota and Illinois. All hazards will be possible and some significant damage may be possible. Additional thunderstorms will pop up in the Southeast later today with a threat for severe weather as well. Heat continues south and east of the front, hastening crop growth. Behind the front, temperatures are much cooler but winds are picking up and will be breezy across the Northern Plains.
| Rural Advocate News | Tuesday June 14, 2022 |
AFBF and NPPC Tell Supreme Court Proposition 12 is Unconstitutional The American Farm Bureau Federation and National Pork Producers Council filed a brief with the U.S. Supreme Court challenging the constitutionality of California’s Proposition 12. The state law seeks to ban the sale of pork from hogs that don’t meet the state’s arbitrary production standards, even if the pork was raised on farms outside of California. AFBF and NPPC argue Proposition 12 violates the constitution’s Commerce Clause, which restricts states from regulating commerce outside their borders. The brief states Proposition 12 “will require massive and costly changes across the entire $26-billion-a-year industry. And it inescapably projects California’s policy choices into every other State, a number of which expressly permit their farmers to house sows in ways inconsistent with Proposition 12.” NPPC and AFBF assert Proposition 12 unconstitutionally regulates commerce outside of California, governs activity outside of California’s borders and beyond its police powers, and imposes substantial burdens on out-of-state farmers and their customers. *********************************************************************************** Consumers Spend More on Food Away From Home in 2021 Consumers in the United States returned to pre-pandemic trends, purchasing more food away from home than food purchases intended for consumption at home. USDA’s Economic Research Service released the data Monday, which shows food away from home spending increased 21.1 percent in 2021 from the previous year. Food at home spending also increased, up four percent in 2021. In 2020, during the COVID-19 pandemic, real total food expenditures fell 6.6 percent from 2019. U.S. consumers’ food-spending patterns changed as efforts were made to limit the spread of COVID-19, which included stay-at-home orders. Food away from home spending decreased by 15.8 percent in 2020, while food at home spending increased by 3.9 percent. In 2021, real total food expenditures increased 12.2 percent from 2020. USDA describes food at home as food intended for off-premise consumption from retailers, and food away from home as food consumed at outlets such as restaurants or cafeterias. *********************************************************************************** Clean Fuels Applauds Chevron on Completion Acquiring Renewable Energy Group Clean Fuels Alliance America CEO Donnell Rehagen welcomed news Monday that Chevron finalized its acquisition of Renewable Energy Group, a longtime Clean Fuels Alliance America member. As the acquisition is finalized, Chad Stone of Renewable Energy Group will continue to lead the Clean Fuels Governing Board as chair. Rehagen says, “This is a meaningful acquisition for our industry and for Clean Fuels for many reasons.” The company was one of the first to build a biodiesel plant in the United States. With 11 biorefineries in the U.S. and Europe and more than half a billion gallons of production of biodiesel and renewable diesel, Renewable Energy Group is also one of Clean Fuels’ largest members in terms of fuel production. California-based Chevron has steadily grown its clean fuels business, actively marketing its Renewable Diesel Blend at the pump in California. Renewable Energy Group will remain headquartered in Ames, Iowa, and will focus on growing Chevron's portfolio of lower-carbon fuels. *********************************************************************************** U.S. Ag Tractor, Combine Sales Fall Below Five-Year Average in May 2022 U.S. tractor and combine monthly unit sales in May 2022 fell below the five-year average for the first time since March 2020, while Canadian sales remained above the line. The Association of Equipment Manufacturers released the monthly data last week, which shows U.S. total farm tractor sales fell 14.5 percent for the month of May compared to 2021, and U.S. combine sales for the month declined 12.7 percent to 315 units sold. Total farm tractor sales and combine sales are both down 14.2 percent year-to-date. In Canada, unit sales fell 11.3 percent, and combine sales fell 28.4 percent. Year-to-date farm tractor unit sales are down 8.6 percent in Canada, while harvesters are down 28.1 percent. AEM’s Curt Blades says, “Supply chain remains the primary issue in the ag equipment market right now.” Blades points out another thing to keep in mind, especially when comparing numbers year-over-year, is 2021 sales were significantly above historic trends. *********************************************************************************** FFA Members Prepare for Careers in Plant Systems Pathways This summer, 45 FFA members from across the country will arrive in St. Louis, Missouri, to explore careers in the plant industry. It’s all part of the Next Gen Conference offered by the National FFA Organization. The conference, which began in 2020, focuses on pathways from animal systems to biotechnology systems members might be interested in. The inaugural conference was held in February 2020 and put on hold for the past two years due to the COVID-19 pandemic. During the event, members will access new ideas, trends and opportunities that will connect them directly with industry leaders during the conference. The conference is designed specifically to give FFA members hands-on, industry-relevant experience. Members will also explore diverse plant operations around St. Louis and learn how to plan for their future careers. An FFA spokesperson says, “This year’s conference will help us cultivate future leaders in the plant systems pathway through a week of experiential learning, relevant education and networking.” *********************************************************************************** Gas Prices Surge Take National Average Above $5/Gallon The nation's average gas price climbed for the eighth straight week, jumping 15.7 cents from a week ago to $5.01 per gallon. The national average is up 57.1 cents from a month ago and $1.94 per gallon higher than a year ago. The national average diesel price increased 13.8 cents in the last week and stands at $5.77 per gallon. Last week saw the national average reaching the $5 per gallon mark, with the most common gas price at $4.99 per gallon, up 50 cents from last week. GasBuddy's Patrick De Haan says, “For now, the upward momentum may slow down, but we are still just one potential jolt to supply away from heading even higher.” De Haan adds, “Should the rise in price finally start to slow demand’s rise, we could see some breathing room, but for now, it seems like Americans are proving resilient to record highs.”
| Rural Advocate News | Tuesday June 14, 2022 |
Tuesday Watch List Markets The U.S. Labor Department will report on producer prices for May at 7:30 a.m. CDT Tuesday, one day before the Federal Reserve is expected to raise the federal funds target by a half-percent or possibly more. Traders will continue to keep close watch on the latest weather forecasts and any news regarding Ukraine with winter wheat harvest season approaching. Weather Heat has built in across a large area of the country east of the Rockies, but a cold front that is moving through the Northern Plains will bring temperatures down across northern areas through the week. On Tuesday, that front moves through Nebraska and the Upper Midwest. Thunderstorms have been active since last night across the Dakotas and continue this morning, getting into northwest Minnesota as well. More thunderstorms are expected to develop this evening and overnight along the front in Nebraska, Iowa, and southern Minnesota and could be severe with strong winds and large hail.
| Rural Advocate News | Monday June 13, 2022 |
Smithfield Foods Closing Plant in California Smithfield Foods says it will stop all harvest and processing operations in Vernon, California, in early 2023 due to the rising cost of doing business in the state. At the same time, the company will align its hog production system by reducing its sow herd in the western region. The company will shrink the size of its sow herd in Utah and is looking at options to exit its farms in Arizona and California. Smithfield harvests only company-owned hogs in Vernon. “We are grateful to our team members in the Western region for their dedication and invaluable contributions to our mission,” says Smithfield Chief Operating Officer Brady Stewart. “We are committed to providing financial and other transition assistance to employees impacted by this difficult decision.” The transition options for employees include relocation options to other company facilities and farms and retention incentives to ensure the business stays in operation until next year. *********************************************************************************** Dairy Leader Wants More Congressional Focus on Trade Sheryl Meshke (MESH-key), CEO of Associated Milk Producers Incorporated, told a Senate subcommittee that the government must pursue expanded trade opportunities. The U.S. dairy industry is asking Congress to pursue additional market access opportunities and address export supply-chain delays so that the U.S. dairy industry can keep up with its global competitors. Meshke serves on the board of directors for the National Milk Producers Federation and the U.S. Dairy Export Council. “In pursuing exports, the U.S dairy industry faces experienced and well-established competitors who’ve been very active with free trade agreements,” Meshke said in testimony before the Subcommittee on Commodities, Risk Management, and Trade. She says the global playing field is slowly tilting against the U.S. due to competitors’ trade agreements with key dairy import markets. U.S. trade negotiators should also look for more access to priority markets like Southeast Asia, Japan, China, the Middle East, and the United Kingdom. *********************************************************************************** Corn Yield Unchanged in June WASDE Report The June World Ag Supply and Demand Estimate report is calling for a U.S. corn planted area and yield forecast unchanged from May. This month’s 2022-2023 corn outlook is for larger beginning stocks, slightly higher use, and increased ending stocks. USDA will release its survey-based Acreage report on June 30. Corn’s season-average farm price is unchanged at $6.75 a bushel. The soybean supply and use projections include lower beginning and ending stocks and higher prices. Soybean export projections are raised 30 million bushels to 2.17 billion, reflecting strong export sales and reduced Brazilian exports. Soybean ending stocks are projected to be 280 million bushels, down 30 million from last month. The soybean season-average price is forecast at $14.70 a bushel, 30 cents higher than last month. The wheat outlook is for increased supplies, unchanged domestic use and exports, and higher stocks. All-wheat production is forecast at 1.7 billion bushels, with the season-average price unchanged at $10.75 a bushel. *********************************************************************************** Growth Energy Testifies on Advanced Clean Cars Regulation Growth Energy Senior Vice President of Regulatory Affairs Chris Bliley (BLY-lee) testified last week before the California Air Resources Board. He spoke to the board in response to its proposed Advanced Clean Cars II Regulation. The proposal set a goal of 100 percent zero-emission vehicle sales by 2035. During his testimony, Bliley encouraged CARB to develop clear policies reflecting the reality that liquid fuels will continue to play an important role in the transportation sector for decades. “In the existing light-duty fleet, higher bioethanol blends like E15 and E85 can get immediately deployed to achieve immediate GHG reductions, reduce harmful air toxics, and reduce consumer costs at the pump,” says Bliley. “Additionally, greater use of E85 will promote even further reductions in GHG and toxic emissions, as well as lower consumer costs because it sells for nearly $2 less per gallon than gasoline.” Consumers are facing record-high gas prices at the pump. *********************************************************************************** NCGA Celebrates June Dairy Month June is National Dairy Month, and the National Corn Growers Association is celebrating the occasion by focusing on the relationship between the corn and dairy industries. Dairy cattle consume 30 percent of the dried distiller’s grains with solubles that are a co-product of producing ethanol. In 2021, DDGs used 1.05 billion bushels of corn. The NCGA engages with the dairy industry through the Innovation Center for U.S. Dairy, which recently hosted the 2022 Dairy Sustainability Alliance Spring Meeting in Illinois. NCGA’s Market Development Manager Michael Granche (GRAHN-chay) attended the conference and says it was great to take part in the high-energy conversations. “I enjoyed talking about sustainability in the dairy industry,” Granche says. “Now that it’s National Dairy Month, it’s a great time to celebrate all the hard work that goes into producing all the delicious dairy products we enjoy.” NCGA also says there are currently 93 million dairy cows in the U.S. *********************************************************************************** 2022 “Rock the Crop” Concert Sweepstakes Underway Firestone Ag kicked off the 2022 Rock the Crop Concert Sweepstakes with Nashville-based country music artist Dillon Carmichael. The sweepstakes event is billed as a celebration of U.S. agriculture. Building on a successful giveaway of a private concert last year, the farm tire manufacturer and the musician are collaborating again to unite music and agriculture in honor of America’s hard-working farmers and ranchers. “The past couple of years have been especially challenging for agriculture workers, so we’re excited to have Dillon Carmichael back on board to join us in thanking one lucky farmer or rancher with a private concert,” says Matt Frank, Firestone marketing product manager. Indiana farmer Carey Garwood won the inaugural concert in 2021. This year’s winner will host that private concert with Carmichael on their farm or ranch. “I’m thrilled to continue this partnership with Firestone and to have such a unique opportunity to personally celebrate America’s farmers,” Carmichael says.
| Rural Advocate News | Monday June 13, 2022 |
Monday Watch List Markets Back from the weekend, traders will be examining the latest weather forecasts, especially as the outlook turned hotter late last week. Friday's WASDE estimates may still have some influence on trading and at 10 a.m. CDT, USDA's weekly report of grain export inspections will get attention, especially for soybeans where shipments have been lacking. At 3 p.m., USDA's Crop Progress report will include soybean and spring wheat crop conditions for the first time this season. Weather Heat advisories and warnings cover much of the country east of the Rockies over the next couple of days ahead of a storm system building in the Northern Plains and Canadian Prairies. This storm is bringing a warm front north through the North-Central U.S. with scattered showers and thunderstorms Monday morning. A cluster of these storms around southern Minnesota may last through the morning and become a line of severe storms across Iowa and Wisconsin and points southeast through Ohio later in the day. There is a significant risk of wind damage from these storms.
| Rural Advocate News | Friday June 10, 2022 |
Biden Nominates McKalip to Ag Trade Post President Biden will nominate Doug McKalip as the U.S. Trade Representative’s next chief agricultural negotiator. McKalip is a longtime USDA advisor and expert in agriculture and trade. The nominee has served as the senior advisor to Ag Secretary Tom Vilsack on trade, national security, and animal and plant health regulations since March 2021. Reuters says U.S. Trade Representative Katherine Tai calls McKalip a highly-qualified nominee with decades of experience in public service. “His institutional knowledge of USDA spans multiple administrations, from leading different offices to serving as a trusted adviser to Secretary Vilsack,” Tai says, “and he will help us continue the close collaboration between our agencies that’s enabled a lot of success.” The chief ag negotiator directs USTR’s negotiations aimed at boosting U.S. farm exports, such as the recent agreement allowing more American beef exports to flow into Japan. McKalip is in year 28 of working with the USDA. *********************************************************************************** Groups, Officials React Positively to McKalip Nomination Many of agriculture’s leading groups and officials are reacting positively to the expected nomination of Doug McKalip to be the chief agricultural negotiator with the U.S. Trade Representative’s Office. McKalip has been a key agriculture policy official for three decades, and Ag Secretary Tom Vilsack says that makes him a great choice for the post. The U.S. Grains Council says McKalip will be able to use his strong background in farm and trade policy and his knowledge of biotechnology to advance U.S. global trade priorities. American Soybean Association CEO Stephen Censky says, “Doug understands the challenges facing agriculture, and we’re glad to have his expertise added to the USTR team.” Brian Kuehl of Farmers for Free Trade says McKalip is “well prepared for fighting for the needs of our nation’s farm and food interests.” The National Corn Growers Association is also pleased to see this nomination in place, as is the National Milk Producers Federation. *********************************************************************************** Commodity Classic Names New Show Director Commodity Classic announced that Maureen Feck is the new Show Director and begins her new position on July 1. She comes to Commodity Classic from the True Value Company, where she was the Senior Director of Meetings and Events. In her prior role, Feck worked in the hardware and tools industry and grew attendance in bi-annual, city-wide conventions by 18 percent over two years. She developed events that are strategically focused on creating positive experiences for the people in attendance. Feck brings more than 15 years of hands-on event, communications, and management experience. She’ll play an integral role in the continued growth and innovation of agriculture’s premier trade and educational show. Her educational background includes a bachelor’s degree in communications from Purdue University in West Lafayette, Indiana. Her first Commodity Classic in the new role is scheduled for March 9-11, 2023, in Orlando, Florida. For more information on the event, go to commodityclassic.com. *********************************************************************************** Another Billion-Dollar Month for Beef Exports The U.S. Meat Export Federation says U.S. beef exports maintained a remarkable pace in April, surpassing $1 billion for the third time in 2022. Beef exports totaled just over 124,400 metric tons in April, three percent higher than last year and the fifth-largest total on record, Export values soared 33 percent higher than last year to $1.05 billion. That trails only the record $1.07 billion total from March. “Global demand for U.S. beef continues to overcome enormous obstacles like inflationary pressures, logistical challenges, and recent lockdowns in China,” says USMEF President and CEO Dan Halstrom. April pork exports totaled 212,800 metric tons, 21 percent less than the large volume reported last year. Pork export value dropped 20 percent from a year ago to just over $600 million. Exports to top destination Mexico continue to run strong while a sharp decline in Chinese demand weighs on the market. April lamb exports increased 37 percent from 2021. *********************************************************************************** USDA Releases Poultry Tournament Rule The USDA’s Agricultural Marketing Service released its long-awaited proposed changes to regulations under the Packers and Stockyards Act regarding the U.S. poultry industry. The changes include a list of disclosures and information live poultry dealers must furnish to poultry growers and sellers with whom the dealers make poultry-growing arrangements. “The proposal would establish additional disclosure requirements in connection with the use of poultry grower ranking systems to live poultry dealers to determine settlement payments for poultry growers,” says AMS. “The proposals are intended to promote transparency in poultry production contracting and give poultry growers and prospective poultry growers relevant information to help them make business decisions.” The Hagstrom Report says comments on the rule and other information collection aspects of it must get received by August 8. A National Chicken Council spokesman says the group is still evaluating the rule and its potential impact on the industry, but they will comment on the proposal. *********************************************************************************** Minnesota Farm is New U.S. Wheat Associates Chair Rhonda Larson of East Grand Forks, Minnesota, started her term as Chair of the U.S. Wheat Associates Board of Directors on June 8 at the group’s annual meeting in Bend, Oregon. Michael Peters of Oklahoma is the new Vice-Chair, Clark Hamilton is the Secretary-Treasurer, and Darren Padget will serve for one year as the Past Chair. USW is the market development organization for the U.S. wheat industry. “I want to thank the entire wheat family for their support,” Larson said to the board of directors. “We heard a lot here about the challenges we face, but with your help, I look forward to representing wheat farmers in overseas markets.” She will represent growers at the World Trade Organization’s 12th Ministerial Meeting in Geneva, Switzerland, June 12-15. Larson has been a board member of the Minnesota Wheat Research & Promotion Council for 17 years, serving as chair from 2010 to 2012.
| Rural Advocate News | Friday June 10, 2022 |
Friday Watch List Markets The U.S. Labor Department's consumer price index for May is due out at 7:30 a.m. CDT Friday and could shake up outside markets, followed by the University of Michigan's consumer sentiment index at 9 a.m. USDA's June WASDE and Crop Production reports at 11 a.m. don't normally shake prices up much but will add to the conversation of trying to get a handle on the bullish demand prices have been hinting at. Traders will also be watching the latest weather forecasts with talk of hotter U.S. temperatures on the way. Weather A cluster of thunderstorms that built across Oklahoma Thursday night will continue to trek east-southeast through the Delta on Friday. Risks for damaging wind gusts are rather high with the cluster and could bring some damage to the region. Lighter showers and thunderstorms will work across the Midwest throughout the day while it dries out in the Central and Southern Plains after a week of high activity.
| Rural Advocate News | Thursday June 9, 2022 |
NPPC Sets a Pathway for Change The National Pork Producers Council announced the culmination of a strategic planning and repositioning effort that will help shape the future of the next generation of pork producers. Under the direction of new leadership, NPPC unveiled a new brand identity to symbolize the organization’s transformation and focus on driving growth in the U.S. pork industry. With the food-production landscape changing and increasing complexity of issues facing U.S. pork producers, a task force of industry leaders developed a five-year strategic plan to ensure focus on the top priorities of NPPC stakeholders. “It’s never been more important to plan for our future,” says NPPC CEO Bryan Humphries. “The task force identified trade, foreign animal disease, labor, and preserving producers’ freedom to operate as priority advocacy issues for NPPC.” The new logo reinforces NPPC’s mission as the unified global voice for the U.S. pork industry in Washington, D.C., across the country, and in the global marketplace. *********************************************************************************** Crop Insurance Options for Producers Considering Double-Cropping The USDA wants to remind producers that options are available for them to insure double-crop soybeans, grain sorghum, and other crops where the practice isn’t allowed. Producers in counties where the Following Another Crop practice isn’t allowed may be able to request coverage through their insurance agent under a couple of conditions: If they plant soybeans and other crops after wheat or other small grains, or if producers in some areas work soybeans into wheat using a relay-cropping practice. It’s important to remember that requests have to get submitted to crop insurance agents by July 15. In addition to these 2022 crop year options, the Risk Management Agency is actively working with stakeholders to identify areas to expand double-cropping coverage for the 2023 crop year. This initiative may include expanding where the FAC practice is allowed permanently or considering other flexibilities and expanding where written agreements are allowed. *********************************************************************************** Senate Confirms Jacobs-Young as USDA Undersecretary The Senate confirmed Chavonda Jacobs-Young as the USDA’s new Undersecretary for Research, Education, and Economics. The vote was 95-4. In a floor statement before the vote, Senate Ag Chair Debbie Stabenow called Jacobs-Young extremely qualified and says she’ll be the first woman of color to serve in the USDA’s highest scientific post. The Hagstrom Report says Stabenow also thanked Ranking Member John Boozman (BOZE-man) for his help in advancing the nomination. Jacobs-Young has served as administrator of the USDA’s Agricultural Research Service since February 2014. The National Cattlemen’s Beef Association congratulated Jacobs-Young after the confirmation vote took place. “The research, economics, and education arm of USDA provides data and analysis that’s crucial to cattle producers around the country as they make business decisions and monitor new scientific developments,” says Ethan Lane, NCBA’s Vice President for Government Affairs. “We look forward to working closely with Dr. Jacobs-Young and her team.” *********************************************************************************** Barchart Cuts U.S. Production and Yield Forecasts for Corn and Soybeans Barchart announced its initial 2022 yield and production forecasts for America’s 2022 corn and soybean crops. The numbers are lower than USDA’s projected figures from the May WASDE report. The organization says it’s thrilled to provide commodity professionals with their estimates for U.S. corn and soybeans. The initial Barchart end-of-season forecast shows U.S. corn production at 14.2 billion bushels with a yield of 174 bushels an acre. That compares to USDA’s prediction of 14.5 billion bushels and a yield of 177 bushels an acre. The end-of-season soybean production is forecast at 4.4 billion bushels with a yield of 49.5 bushels per acre. This compares to a USDA forecast of 4.6 billion bushels and a 51.5 bushel per acre yield. “This has been somewhat of an unprecedented year for the commodity markets,” says Barchart CEO Mark Haraburda (Har-ah-BURR-dah). “We provide producers with as much information as possible for their marketing decisions.” *********************************************************************************** Pork Board Elects New Officers The National Pork Board elected new officers to lead the 15 producer-directors representing 60,000 American pig farmers who pay into the National Pork Checkoff. The checkoff is a program that funds research, promotion, and education efforts for the benefit of the whole pork industry. Indiana pork producer Heather Hill was elected to serve as president of the National Pork Board for the 2022-2023 term. “Real Pork is about real farmers leading efforts to ensure the public understands our product is Real Nutritious and Real Sustainable,” says Hill. The new president owns a 600-sow farrow-to-finish operation in Indiana with her husband and his parents. The family farm also grows corn, soybeans, and wheat. “We will deliver real results to help protect producer freedom to operate and promote continuity of business should a foreign animal disease like African Swine Fever threaten the U.S. herd,” Hill adds. Bob Ruth of Harrisburg, Pennsylvania, is the new Vice-President. *********************************************************************************** Fields of Corn Photo Contest is Open The National Corn Growers Association’s “Fields-of-Corn” photo contest is now open and accepting entries for the 2022 event. The contest began in 2014 and has seen almost 3,000 pictures submitted across various categories. The NCGA added a new category this year called Farm Babies. “Our winners in last year’s contest knocked it out of the park,” says NCGA Graphic Communications Manager Beth Musgrove. “I can’t wait to see what gets entered this year. Other popular categories include growing field corn and the farm family lifestyle, just to name a few.” A total of 26 cash prizes will get awarded. The photo with the most Facebook likes will win a $500 grand prize and first, second, and third-place awards will be given in each of eight categories. A panel of judges will select a Grand Prize winner who will get $500. For more information or to submit photos, go to fields-of-corn.com.
| Rural Advocate News | Thursday June 9, 2022 |
Thursday Watch List Markets USDA's weekly export sales are due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department releases its weekly report on natural gas storage at 9:30 a.m. Traders continue to keep a close watch on the latest weather forecasts and any news regarding Ukraine. Weather In the non-stop active pattern that has been moving across the country since the weekend, another disturbance will move into the Central Plains Thursday, producing scattered showers and thunderstorms. Severe weather looks likely from Nebraska to Oklahoma and the Texas Panhandle, areas that have already had bouts of severe weather this week. The rain that comes with the storms will be important though, as the region will start to become less active this weekend.
| Rural Advocate News | Wednesday June 8, 2022 |
Farmer Sentiment Plummets as Production Costs Skyrocket The Purdue University-CME Group Ag Economy Barometer plummeted in May to a reading of just 99, the weakest reading since April 2020. The May 2022 barometer reading marked just the ninth time since data collection began in fall 2015 that the overall measure of farmer sentiment fell below 100. Agricultural producers’ perceptions regarding current conditions on their farms, as well as their future expectations, both weakened this month. The Index of Current Conditions fell 26 points to a reading of 94, while the Index of Future Expectations declined 21 points to 101 in May. Notably, this month saw a rise in the percentage of respondents who feel their farm is worse off financially now than a year earlier, an indication that escalating production costs are troubling producers. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from May 16-20, 2022. *********************************************************************************** EIA Expects Continued High Energy Prices Through 2023 The U.S. Energy Information Administration forecasts that a variety of U.S. energy prices will remain historically high through 2023. The outlook includes oil, natural gas, coal, and electricity, as seen in EIA’s June 2022 Short-Term Energy Outlook Tuesday. EIA Administrator Joe DeCarolis says, "Although we expect the current upward pressure on energy prices to lessen, high energy prices will likely remain prevalent in the United States this year and next." EIA forecasts that high natural gas and coal prices will result in an increased share of renewables in U.S. generation, largely offset by a decline in coal's share. The natural gas share is forecast to decline over the next two years, although at a slower rate than coal. EIA says the Brent crude oil price will average $108 per barrel during the second half of 2022, as tight global inventories and significant geopolitical uncertainties continue to put upward pressure on crude oil prices despite an increase in production to pre-pandemic levels. *********************************************************************************** Farmers National Company: Land Prices up 20% The stronger land prices of late 2021 continued higher through the first half of 2022. After a calm period at the start of the year with prices steady, prices took another jump up as a result of the outbreak of war in Ukraine and ongoing inflation fears. Farmers saw higher commodity prices, and investors wanted a low-risk inflation hedging investment, which together propelled the competition for good cropland. Prices for good quality cropland are up 20 percent in some areas since the first of the year. Randy Dickhut of Farmers National Company says, “Good land that was selling for around $16,000 last fall sold for $19,000 to $21,500 per acre at company auctions in March.” The question of the moment is, will land prices go even higher? Dickhut adds, “With current land prices at heightened levels, most of the supporting factors remain in place at this time to keep values steady to firmer for the next six months.” *********************************************************************************** Cattle Producers Share WOTUS Perspective at EPA Roundtable Cattle producers voiced their concerns with the Environmental Protection Agency and Army Corps of Engineers' ongoing Waters of the U.S. rulemaking this week. The Kansas Livestock Association hosted one of ten roundtable events for the EPA and Army Corps Monday. NCBA Environmental Counsel Mary-Thomas Hart says, “To be successful in their operations, cattle producers need a clear, limited WOTUS definition that finally provides much-needed certainty after years of shifting rules.” In July 2021, the EPA announced that rather than facilitate public engagement—the typical course of action for major rulemakings—the agency would instead ask private organizations to entirely plan and propose a roundtable with stakeholders. In addition to the roundtables, NCBA has engaged on WOTUS by submitting technical comments on the proposed phase one WOTUS rule and filing an amicus brief in the case Sackett v. EPA, a challenge to the EPA’s authority under the Clean Water Act. NCBA has called for the EPA to pause WOTUS rulemaking until the case is decided. *********************************************************************************** General Mills Invests $3 Million to Scale Eco-Harvest by ESMC General Mills and Ecosystem Services Market Consortium Tuesday announced a multi-year roadmap to scale Eco-Harvest. The market program by ESMC recognizes and rewards farmers for beneficial environmental outcomes from regenerative agriculture. The roadmap focuses on priority regions in the U.S. and Canada where General Mills sources its key ingredients, like wheat, oat, corn, and dairy. The initial $3 million investment from General Mills includes an ESMC grant to support the launch and development of Eco-Harvest and funds to scale regional programs. Eco-Harvest is a voluntary market program that generates and sells credits for increased soil carbon, reduced greenhouse gases, and improved water quality. The credits represent verified environmental benefits created within agricultural value chains resulting from approved farm practice changes. Eco-Harvest supports General Mills’ commitments to advance regenerative agriculture on one million acres by 2030, reduce absolute greenhouse gas emissions across its value chain by 30 percent by 2030, and ultimately achieve net zero emissions by 2050. *********************************************************************************** USDA: School Foods Offer Richest Source of Dairy in Children’s Diets USDA’s Economic Research Service Tuesday released new data showing schools are the richest source of dairy in children’s diets. The data comes from 2017-2018, for children between two and 19 years old. These foods provided an average of 1.99 cups of dairy products per 1,000 calories consumed each day. Food sources are comprised of foods prepared at home and foods prepared away from home, including foods from restaurants, fast food establishments, and schools. The dairy foods group, as defined by USDA dietary guidance, is a major source of calcium and includes milk, cheese, yogurt, lactose-free milk, and fortified soy milk. The Dietary Guidelines for Americans, 2020–25, recommend individuals two years and older should consume two or three cups of dairy per day, depending on age and calorie level of dietary pattern. Although no age group meets this recommendation, children come the closest, with school foods making an important contribution.
| Rural Advocate News | Wednesday June 8, 2022 |
Wednesday Watch List Markets Traders continue to keep an eye on the latest weather forecasts, will pause at 8 a.m. to see if USDA has an export sales announcement and right or wrong, may pay attention to talk from Russia's meeting with Turkey Wednesday, regarding Russia's proposal to escort ships out of Ukrainian ports. At 9:30 a.m. CDT, the U.S. Energy Department will release its weekly inventory report, including ethanol production. Weather Continuing the pattern of active weather this week, more widespread showers and thunderstorms are expected on Wednesday. The heavier hit areas should be in the Midwest, Southern Plains, and Delta. Mostly dry weather sets up for a day in the Northern Plains, which will help the Red River Valley dry out even more. Texas will remain dry as well with continued hot temperatures where storms do not occur across the north and west. As has been the case all week, the active weather should lead to areas of severe weather.
| Rural Advocate News | Tuesday June 7, 2022 |
Thompson, Boozman Call on White House to Withdraw Brief in Roundup Case Republican lawmakers want the Biden Administration to withdraw its brief before the Supreme Court in a case involving the Environmental Protection Agency's federal registration authority of Roundup. John Boozman of Arkansas, the top Republican on the Senate Ag Committee, and Glenn GT Thompson, the top Republican on the House Ag Committee, penned the request in a letter Monday. The Republican leaders question the White House's rationale for filing the brief based on a "change in administration" and seek answers as to why the Solicitor General modified its long-standing position that EPA maintains federal preemption authority on all crop protection tools without consulting the relevant agency subject matter experts. The lawmakers write, “Such a reversal coupled with the lack of consultation with subject matter experts is incredibly concerning.” If the Ninth Circuit's decision is left in place, the lawmakers say growers will lose a critical tool from their toolbox, and EPA’s registration process would evolve into a state-by-state patchwork. *********************************************************************************** Poll Finds Majority of Voters Support U.S. Aquaculture Industry Stronger America Through Seafood announced Monday that a majority of voters support establishing a U.S. aquaculture industry to increase sustainable seafood production. A survey by the organization found that two-thirds of voters would feel more favorable towards a member of Congress who established pathways for offshore aquaculture. Among voters, 84 percent support establishing a clear, predictable pathway for U.S. aquaculture when learning many American companies build aquaculture operations abroad, and 86 percent believe it’s important to expand U.S. aquaculture when learning the U.S. imports most of its seafood. In response, Sarah Brenholt of the organization says, “Now is the time for Congress to act and put in place federal policies that would establish an aquaculture industry in U.S. federal waters.” Stronger America Through Seafood supports the Advancing the Quality and Understanding of American Aquaculture Act. The bill would direct the National Oceanic and Atmospheric Administration to harmonize the permitting system for offshore aquaculture for farms in federal waters. *********************************************************************************** Genetically Modified Corn Does Not Damage Non-Target Organisms A new major meta-analysis has found that Bt corn does not damage non-target organisms. The results published Monday by USDA's Agricultural Research Service found genetically modified Bt corn has little impact on non-target insects and other organisms, especially compared to growing conventional corn. Bt corn is corn that has been genetically modified so that it produces proteins to control corn borers, corn rootworms and other major pests of corn. The first Bt corn was approved in 1996, and critics have been suggesting that it also can destroy beneficial insects or other non-targeted organisms. The study gathered hundreds of individual studies published between 1997 to 2020 that have looked at whether growing Bt corn changed the environmental abundance of non-target animals. Bt corn represents a highly selective pest control technology with relatively few negative consequences for non-target invertebrates, especially when compared with the use of broad-spectrum insecticides for managing Bt-targeted pests, according to the scientists. *********************************************************************************** USDA Announces Urban Agriculture Investments The Department of Agriculture last week announced $43 million in grants and cooperative agreements to help deliver key USDA programs to urban producers. Specifically, USDA is investing $10.2 million in new cooperative agreements to expand compost and food waste reduction efforts and $14.2 million in new grants to support the development of urban agriculture and innovative production projects. Additionally, $18.7 million will fund 75 grant proposals from the 2021 application cycle, which was oversubscribed. Natural Resources Conservation Service Chief Terry Cosby says, “These projects will help for urban farmers create new, more affordable, and better local market options.” USDA’s Farm Service Agency is also standing up six more urban county committees, which help deliver farm loans, disaster assistance, safety net and conservation programs. FSA Administrator Zach Ducheneaux adds, “These new urban county committees will work to encourage and promote urban agriculture and address areas such as food and program access, community engagement and food security.” *********************************************************************************** FFA Members Head to Washington, D.C. to Develop Leadership Skills For more than fifty years, FFA members from across the country converge in Washington, D.C., in the summer. After a two-year delay, the Washington Leadership Conference is back. The annual conference begins June 7(today). More than 2,000 students are registered for the 2022 Washington Leadership Conference, the second-largest student experience the National FFA Organization hosts each year. FFA members can attend the conference during one of seven weeks through July 30. They will spend the week under the guidance of professionals, counselors and FFA staff. In workshops, seminars and small groups, members will focus on identifying and developing their personal strengths and goals while undergoing comprehensive leadership training that will help them guide their local FFA chapters. The capstone of the event will be a civic engagement activity where participants apply what they have learned to a hands-on activity. Members will also analyze the needs of their communities and develop wide-ranging and high-impact community service initiatives. *********************************************************************************** Gas Prices Spike on Tighter Supplies The nation's average gas price increased for the seventh straight week, surging 26.0 cents from a week ago to $4.85 per gallon. The national average is up 56.0 cents from a month ago and $1.81 per gallon higher than a year ago. The national average diesel price increased 11.5 cents in the last week and stands at $5.62 per gallon. GasBuddy's Patrick De Haan says, “It now appears not if, but when, we’ll hit that psychologically critical $5 national average.” Gasoline inventories continue to decline even with demand softening due to high prices, a culmination of less refining capacity and strong consumption. Nine states have average gas prices above the $5 per gallon mark, with more set to join in the days and weeks ahead. Diesel prices also stand at a record high, which pushes prices of most goods higher. With China’s economy now largely fully reopen, oil demand is likely to rise further.
| Rural Advocate News | Tuesday June 7, 2022 |
Tuesday Watch List Markets At 7:30 a.m. CDT Tuesday, the U.S. Census Bureau releases the trade deficit for April and also supplies export details that USDA will publish later Tuesday morning. A report on U.S. consumer credit for April is set for release at 2 p.m. Traders will keep watch on the latest weather forecasts and any news of an export sale or updates from Ukraine. Weather A few disturbances are moving through the country this week, leading to widespread areas of showers that continue Tuesday. Some severe weather will be possible as well, particularly in the Central Plains. Not everywhere will get the showers. The Red River Valley in the Northern Plains will continue to see favorable dry conditions to perhaps allow for more planting. Texas will be mostly hot and dry for the next several days, though some showers may get into the northern Panhandle.
| Rural Advocate News | Monday June 6, 2022 |
EPA Issues Final RVOs for 2020-2022 The Environmental Protection Agency issued the final Renewable Volume Obligations for 2020, 2021, and 2022 last week. The agency lowered conventional ethanol volumes to 12.5 billion gallons for 2020, advance biofuel to 4.63 billion, and cellulosic to 510 million. The rule also sets conventional ethanol at 13.79 billion gallons in 2021 and 15 billion in 2022. In a move sure to please the ethanol industry, the rule adds a supplemental 250 million gallons that was illegally waived in the 2016 RVO and denies 72 pending small refinery exemption requests. The EPA announcement also provides important guidance to limit the abuse of small refinery exemptions in the future. Growth Energy CEO Emily Skor says the 15 billion gallons in 2022 is a move that sets a baseline for strong future biofuel blending levels. “These moves will set the direction of total and advanced renewable fuel volumes for 2023 and beyond,” Skor says. *********************************************************************************** World Food Prices Drop in May World food prices dropped in May, the second-straight monthly decrease after hitting a record high in March. The U.N.’s Food and Agricultural Organization says while overall prices dipped, the cost of cereals and meat both rose during May. The Food Price Index tracks the most globally-traded food commodities and averaged 157.4 points last month after hitting 158.3 in April. While the average did drop month-to-month, the May index was still 22 percent higher than in 2021. In the cereal supply and demand estimates, the FAO says it expects global cereal production would drop in the 2022-2023 season for the first time in four years after record production last year. The cereal price index climbed 2.2 percent, with wheat posting a 5.6 percent month-on-month gain. The dairy, sugar, and vegetable oil price indices all fell in May, but the meat index edged up to an all-time high level. Vegetable oil dropped 3.5 percent from April. *********************************************************************************** Farm Real Estate Debt Builds in First Quarter Farm real estate debt at commercial banks grew modestly in the first quarter, while production loans remained steady. The Kansas City Federal Reserve Bank says alongside soaring farmland values, real estate loan balances increased at the fastest pace in four years and drove an increase in the overall amount of agricultural lending. Following a sharp pullback over the last two years, non-real estate lending was stable from a year ago. Farm loan performance also continued to improve, but performance at agricultural banks remained limited by compressed net interest margins and a glut of liquidity. The farm economy remained strong alongside decade-high commodity prices that continued to support farm finances. Many producers have benefited immensely from strong cash balances, but credit needs may rise as higher input costs weigh on profit margins. Farm lending accelerated in recent months alongside an increase in the size of operating loans. Many bankers expect loan demand to continue climbing. *********************************************************************************** NCBA Commends U.S.-Japan Beef Export Agreement The National Cattlemen’s Beef Association lauded the signing of an agreement between the U.S. and Japan to increase the Beef Safeguard Trigger level under a trade agreement between the two countries. Kent Bacus, NCBA senior director of international trade and market access, says the agreement underscores the importance of a mutually-beneficial relationship between U.S. cattle producers and Japanese consumers. “We are hopeful that the improved safeguard will provide greater certainty for all segments of the supply chain,” Bacus says. “We thank Ambassador Tai for her continued efforts to reduce trade barriers and expand export opportunities for American cattle producers.” In March 2021, Japan and the U.S. entered negotiations after record-setting beef exports triggered the safeguard provision in the U.S.-Japan Trade Agreement. The increase in the Beef Safeguard Trigger will allow American producers to continue exporting high-quality beef to meet Japanese consumer demand. U.S. beef exports to Japan hit $2.3 billion in 2021. *********************************************************************************** NASCAR Reaches 20 Million Miles on Renewable Fuel NASCAR and official partner Growth Energy say a significant milestone got surpassed this weekend at the World-Wide Technology Raceway. NASCAR drivers have passed 20 million miles driven on Sunoco (Suh-KNOW-co) Green E15, a fuel blended with 15 percent ethanol. Growth Energy, the world’s largest trade association representing America’s biofuel producers and supporters, has been a partner with NASCAR since 2011. NASCAR’s reduced greenhouse gas emissions by 20 percent across its three national touring series while also increasing horsepower on the track. “We’re fortunate to have great partners like Growth Energy and Get Bioethanol who are dedicated to NASCAR and helping us minimize our impact on the environment,” says Michelle Byron, NASCAR’s vice president of partnership marketing. Growth Energy CEO Emily Skor says, “Twenty million NASCAR miles driven on Sunoco Green E15 is a significant milestone for our environment and NASCAR’s sustainability platform initiative. Cars have cut carbon emissions while boosting octane on the track.” *********************************************************************************** Cotton Trust Protocol Launches Streamline Enrollment The U.S. Cotton Trust Protocol announced a new streamlined three-year grower enrollment for the 2022 through 2024 crops. The new process is designed to be quick, easy, and efficient, which allows a grower-member’s cotton to enter the supply chain sooner. Dr. Gary Adams, president of the U.S. Cotton Trust Protocol, says they understand the high demands on a grower’s time and listened to producer feedback. “We implemented a more streamlined and efficient enrollment process,” Adams says. “We thank the growers who helped double participation in 2021.” As supply chain membership continues to increase, Adams says they need to collectively ensure there is enough participation in the program to meet demand and that the U.S. continues to be a leader in producing sustainable cotton for markets around the world. Under the new process, Adams says growers should be able to complete all the requirements in one sitting. Data in the program remains secure and confidential.
| Rural Advocate News | Monday June 6, 2022 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather developments and forecasts for the week ahead. Any news of an export sale or updates from Ukraine will also be watched. At 10 a.m. CDT, USDA will have its weekly export inspections report, followed by Crop Progress at 3 p.m. Monday's Crop Progress report will have the first crop rating for corn and assessment of winter wheat harvest progress for the new seasons. Weather An area of heavier thunderstorms was moving through the Ozarks early Monday morning with more scattered activity in the Northern and Central Plains through the Midwest. This is all part of an active weather week as several small disturbances will move through the country, bringing scattered showers and thunderstorms and bouts of severe weather. The greatest severe threat on Monday is from western Kansas up through the Black Hills, though storms could also become stronger across the northern Delta and Mid-South if they can hold together through the morning.
| Rural Advocate News | Friday June 3, 2022 |
Wheat Growers: Consult USDA on Glyphosate Case Review The U.S. Supreme Court is preparing to decide whether to review a case that threatens federal preemption in the regulation of crop protection technologies. The National Association of Wheat Growers is again asking the Biden administration to consult with the USDA on the policy changes and the far-reaching agriculture implications of the case. In May, the U.S. Solicitor General issued a brief urging the Court to deny review of a case involving glyphosate labeling, arguing that federal regulations don’t preclude states from making additional labeling requirements, even if those state requirements run counter to federal findings. Ag Secretary Tom Vilsack confirmed USDA wasn’t consulted on the brief. “We believe it would be useful if the administration consults with USDA on the ramifications of a patchwork approach to crop protection products,” says NAWG President Nicole Berg. Farmers would face decreased access to much-needed tools to produce food, fiber, and fuel safely and sustainably. *********************************************************************************** Census of Agriculture Sign-Up Deadline Approaching Ag producers have until June 30 to sign up to receive the 2022 Census of Agriculture. The National Agricultural Statistics Service will mail ag census survey codes for responding securely online to every known U.S. producer in November. Hard copy questions will be mailed in December. The ag census has been conducted for more than 180 years and remains the only source of comprehensive and impartial agricultural data for every state and county in the nation. It includes operations of all sizes and in all locations. “The Census of Agriculture is a collective voice that tells the story and value of American agriculture,” says Barbara Rater, NASS Census and Survey Division Director. “The data influences actions and informs policy and program decisions that directly impact producers, their operations, and everyone they touch, which is all of us.” That’s why NASS wants every producer to participate in the census. For more information, producers can go nass.usda.gov/AgCensus. *********************************************************************************** Groups Respond to USDA Plan for Transforming Food System American Farmland Trust responded positively to USDA’s plan for transforming the U.S. food system. “American Farmland Trust has been a strong advocate for increased business technical assistance to farm and food businesses and organized an effort last year with the Agricultural Viability Alliance to encourage USDA to do more in this space,” says AFT President and CEO John Piotti (Pee-OT-tee). “We are pleased that USDA heeded the call from 50 members of Congress and over 110 organizations asking for this kind of assistance.” National Farmers Union President Rob Larew was in attendance when Ag Secretary Vilsack announced the plan, and Larew says it’s a great step towards a more secure food supply chain and a fair agricultural economy. “Today’s announcement about how the USDA will work to transform the food system is a great step towards those ends,” Larew says. “NFU will work together with USDA to help move this transformative process ahead.” *********************************************************************************** Philippine Government Temporarily Lowers Import Tariff on Corn The Philippines recently announced a decision to lower restrictive corn import tariffs on corn from outside Southeast Asian countries from 35 percent to five percent. The U.S. Grains Council says that’s potentially good news for U.S. corn exporters. “The U.S. and Philippines agricultural industries have enjoyed a strong relationship for a very long time,” says USGC President and CEO Ryan LeGrand. “The Council is standing by and ready to help their government and industry fill in any raw material supply shortage the country is facing.” The Philippines’ feed industry relies heavily on feed wheat imports due to its history of high import tariffs on corn from outside the Association of Southeast Asian Nations (ASEAN). The recent global wheat supply chain disruptions have had a disproportionately negative impact on Philippine input prices. “U.S. farmers have an abundant and sustainable corn crop ready to deploy when needed,” LeGrand adds. “We’ll be there to help in every way possible.” *********************************************************************************** National Sorghum Producers join RIPE Non-Profit Coalition Rural Investment to Protect our Environment, also known as RIPE, is a producer-led nonprofit coalition advancing a bipartisan climate policy plan that works for producers and the public. RIPE is proud to announce that the National Sorghum Producers have joined its steering committee. “For the RIPE100 policy proposal to become a reality, it needs the support of as many producers as possible,” says RIPE VP of Engagement and Government Relations Martin Barbre. “With National Sorghum Producers on board, we continue to diversify perspectives and bring new viewpoints to the conversation on how to best build a producer-led climate policy that will benefit farmers, ranchers, and the public.” Through payments of $100 per acre or animal unit, the RIPE100 plan would reward producers for the total public value of their conservation practices, including no-till, cover crops, nutrient management, and more. “We are excited to collaborate with RIPE,” says NSP Vice Chair Craig Meeker. *********************************************************************************** Administration Likely to Raise Ethanol Blending Volumes for 2021 Two sources close to the discussions told Reuters that the Biden administration is likely to raise ethanol blending mandates for 2021 above the figure it proposed last December. The Environmental Protection Agency proposed that refiners blend 13.32 billion gallons of ethanol into the fuel pool. The December proposal angered Farm Belt lawmakers and biofuel producers, who said the number was too low. The mandates are getting set for 2020-2022 retroactively because of disruptions from COVID-19. The sources also say that the administration isn’t looking at dramatic changes for 2020 or 2022. White House officials met to discuss the mandates and the political implications of the decision. The move could impact fuel and food prices in the middle of a 40-year peak in inflation rates. The rule is a long-time bone of contention between the oil and corn lobbies in Washington, D.C. Refiners claim the mandate requirements are costly and threaten their businesses.
| Rural Advocate News | Friday June 3, 2022 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Friday, the same time the Labor Department will release nonfarm payrolls and the unemployment rate for May. Traders remain interested in the latest weather forecasts, any news of an export sale and the latest reports from Ukraine. Weather A trough off the West Coast is sending pieces of energy into the Pacific Northwest and the Plains for Friday. Areas of showers and thunderstorms are expected to develop throughout the day, which may turn out to be severe in some cases for the High Plains. West Texas has the best chance for that later Friday though some moderate rain is moving through already Friday morning. The Atlantic Basin is likely to get its first tropical storm of the season as a low pressure center off the Yucatan Peninsula is nearing the criteria needed to call it one. Regardless, heavy rain is starting to move into Florida, which should see rounds of it through Saturday regardless of tropical classification.
| Rural Advocate News | Thursday June 2, 2022 |
USDA Announces Framework for Shoring Up the Food Supply Chain The Department of Agriculture Wednesday announced the framework to transform the food system and supply chain. The framework seeks to provide more options, increase access, and create new, more, and better markets for small and mid-size producers. The announcement builds on lessons learned from the COVID-19 pandemic and supply chain disruptions caused by Russia's war in Ukraine. When the COVID-19 pandemic began, USDA made significant investments through its Pandemic Assistance Program, providing immediate relief. As the pandemic evolved and Russia's war in Ukraine has caused supply chain disruptions, USDA says it has become clear we “cannot go back to the food system we had before.” USDA plans to build a more resilient food supply chain that provides more and better market options for consumers and producers while reducing carbon pollution. The framework also addresses marketplace dominance by creating new, more and better local market options. Further, USDA seeks to make nutritious food more accessible and affordable for consumers and emphasize equity through the framework. *********************************************************************************** Drought Resilience Interagency Working Group Releases Summary Report The Biden Administration Wednesday released the Drought Resilience Interagency Working Group’s Summary Report. The report outlines actions taken to date to improve drought-stricken communities' longer-term resilience to drought through financial and technical assistance. Agriculture Secretary Tom Vilsack says, “collaboration and coordination among federal agencies has increased in an effort to more effectively deploy resources and support during these intense, drought-stricken times.” The Department of Interior and the Department of Agriculture co-chair the working group, which was created under the White House’s National Climate Task Force. The Drought Resilience IWG agencies are working cooperatively in a whole-of-government manner, to address drought issues through existing programs and resources. There are many opportunities provided by the Bipartisan Infrastructure Law to provide critical funding to address water challenges, which includes drought. The Drought Resilience Interagency Working Group will facilitate coordination to deploy $13 billion in water-related investments, including $12.4 billion at the Department of Interior, and $918 million at USDA. *********************************************************************************** Lawmakers Request Full Funding for the PILT Program in Fiscal Year 2023 Appropriations Bill A bipartisan group of 30 Senators Wednesday urged the Senate Appropriations Committee to fully fund the Payments in Lieu of Taxes, or PILT program, for fiscal year 2023. The program provides payments to counties with non-taxable federal land within their borders to offset the lost property tax revenue. Led by Colorado Democrat Michael Bennet and Idaho Republican Mike Crapo, the lawmakers say the payments fund critical services in those counties. The Senators write, “we look forward to working with you to enact a fiscally responsible, long-term solution to fully fund PILT and eliminate the uncertainty that counties face each year.” Throughout the country, PILT provides critical resources to nearly 1,900 counties across 49 states. Counties have used these payments for more than 40 years to fund law enforcement, firefighting, emergency response, and other essential county services. As communities continue to contend with the aftermath of the COVID-19 pandemic, the funding also supports communities’ recovery efforts. *********************************************************************************** American Drivers Reach 30 Billion Miles on E15 Growth Energy Wednesday announced drivers across the United States have logged 30 billion miles on the road using E15. Growth Energy CEO Emily Skor says, "as we kick off the summer driving season, this is a testament to the rising popularity of E15." In just the last few months, E15 has been a shield against skyrocketing fuel prices, saving drivers almost $0.60 per gallon in some areas. Growth Energy says ethanol is not only more affordable than imported oil, but it cuts climate emissions by 46 percent. Available at more than 2,600 gas stations across 31 states, E15 is approved for more than 96 percent of light duty vehicles, which account for 98 percent of all vehicle miles traveled in the United States. Even before the recent run-up in oil prices, it was estimated that nationwide access to E15 could save drivers $12.2 billion annually in fuel costs. E15 also offers a lower fuel volatility and smog-forming potential than standard blends. *********************************************************************************** Registration Now Open for Export Exchange 2022 Registration opened this week for Export Exchange 2022, scheduled for October 12-14, 2022, in Minneapolis. The U.S. Grains Council, Growth Energy and Renewable Fuels Association organize the biennial event. The groups expect to bring together 200 international buyers and end-users of coarse grains and co-products, including distiller’s dried grains with solubles, with approximately 300 U.S. suppliers and agribusiness representatives. In addition to networking opportunities, the event will focus on timely topics related to exports of U.S. corn, sorghum, barley, DDGS and related products. Growth Energy CEO Emily Skor says, “After two years of cancelled Export Exchanges due to the pandemic, we’re excited to welcome U.S. producers and international grain buyers to Minneapolis.” While the 2020 event was interrupted by COVID-19, reported sales associated with Export Exchange 2018 included approximately 1.3 million metric tons of grains and co-products worth $403 million traded either at the conference or immediately before or after. Registration is available online via www.exportexchange.org. *********************************************************************************** National FFA Organization Named Among the Top Workplaces in Indiana The National FFA Organization was recently named one of the top workplaces in central Indiana by The Indianapolis Star for the second year in a row. The recognition was based on a survey that employees took between October 2021 and February 2022. More than 500 employers participated in the program – ranging from small, medium and large employer categories. National FFA was one of 107 businesses selected based on the survey results. The anonymous survey asked questions about the work environment, leadership, culture, pay/benefits and more. The survey indicated employees at FFA were enthusiastically engaged enough to make the list of top workplaces. With an employee count of 99 at the time of the survey, the National FFA Organization is listed as a top workplace in the small-size category. Denise Weathersbe, FFA human resources director, says, “As the organization seeks to build the next generation of leaders, we are proud of our staff for continuing to live out those traits every day.”
| Rural Advocate News | Thursday June 2, 2022 |
Thursday Watch List Markets USDA's weekly export sales will be released Friday, due to this week's holiday schedule, but weekly U.S. jobless claims and an update of the U.S. Drought Monitor are still on track for 7:30 a.m. CDT releases Thursday, along with a report on first-quarter U.S. productivity. At 9:30 a.m., the Energy Department's weekly report of natural gas storage is out, followed by weekly energy inventories at 11 a.m. Traders will stay up on the latest weather forecasts and watch for a possible export sales announcement at 8 a.m. Weather A front will continue to slowly move southeast through the country on Thursday. It will also be active with areas of showers and thunderstorms occurring from Texas to the Mid-Atlantic. Some of this rain will be heavy and could produce some flooding. Areas north of the front will remain dry, with drainage promoted in the wet areas around North Dakota and northwest Minnesota for another day.
| Rural Advocate News | Wednesday June 1, 2022 |
Both Sides Leave Table Amid Strike at CNH Industrial Both CNH Industrial and the United Auto Workers put out competing statements regarding their contract negotiations after reports said both sides left the bargaining table. In an email statement, CNH says, “After several meetings, the company presented the union with all all-encompassing, comprehensive document addressing the outstanding issues. Unfortunately, the union declined to meet or allow the company to explain its position and proposal.” The company also says the union wouldn’t allow its members to even view the proposal. The union statement says CNH Industrial entered the negotiations with what it called “principles of fear and intimidation,” and hoped to “starve out UAW members.” The UAW email says, “The company’s latest proposal falls short of our member’s bargaining agenda. Our bargainers are meeting with our members and communicating the areas of concern that remain unresolved.” The union says it’s proud of its members for displaying solidarity and support for the negotiating team throughout the process. *********************************************************************************** Ag Exports Supporting Over One Million Jobs The benefits of U.S. ag exports to the American economy far exceed the value of shipments alone. The production, processing, storage, transportation, and marketing of farm and food products headed for the export market support a large number of jobs throughout the U.S. The USDA’s Economic Research Service says in 2020, U.S. agricultural exports supported the equivalent of more than 1.13 million jobs on and off the farm. With U.S. ag exports valued at more than $150 billion in 2020, every $1 billion in exports creates 7,550 jobs. Farm activities generated by U.S. exports – mainly crop and livestock production – supported a total of 439,500 jobs. Those jobs included labor provided by farm operators and their family members, hired farmworkers, and contract workers. Off the farm, exports supported 423,900 total jobs in the services, trade, and transportation industries. Food processing activities created 162,000 jobs, while other manufacturing activities like canning, packaging, and bottling provided 107,000 jobs. *********************************************************************************** Billion-Dollar Livestock Facility Planned for Western South Dakota Plans are in development to construct a $1.1 Billion next-generation livestock processing facility in western South Dakota. The one-million-square-foot facility will process beef and include a specialty bison line. Kingsbury and Associates and Sirius Realty of Rapid City, South Dakota, are currently in the research and development phase of the project. “We aim to restore competition in American meant processing,” says Megan Kingsbury. “I’m a fifth-generation producer and know how difficult it is right now for us to be profitable. We want to fix that.” Cattle Business Weekly says they want to compete with the Big Four meatpacking giants and be that all-important second bidder in the cash market. The proposed facility will focus on bringing in and developing new technologies in robotics and artificial intelligence to make processing easier, safer, and more efficient. “We will focus on procuring American cattle and feeding American citizens affordable, high-quality protein,” Kingsbury adds. *********************************************************************************** Angus Foundation Raises Over $55,000 The Angus Foundation held its second annual Angus Day of Giving on May 17. The day resulted in over $55,000 to further its mission of supporting Angus youth, education, and research efforts. The event celebrates the day George Grant brought the first Angus bulls to Victoria, Kansas, in 1873. “We were amazed by the overwhelming generosity we saw from the Angus family for our second annual Angus Day of Giving,” says Jaclyn Upperman, the foundation’s executive director. “Our donors made it a day to celebrate the legacy of our breed, but also write the next chapter of the Angus story.” Gifts given on Angus Day support the Angus Fund, which helps support youth leadership through programs like the National Junior Angus Board, Leaders Engaged in Angus Development (LEAD) Conference, and the Raising the Bar Conference. Supporters also celebrated the momentous day in the breed’s history by sharing stories using #AngusDay on social media. *********************************************************************************** Soy Industry Buyers and Sellers Coming to U.S. Soy Connext The U.S. Soybean Export Council will bring buyers and sellers across the soybean industry together at the Soy Connext event on August 22-24 in San Diego, California. Soy Connext is formerly known as the U.S. Soy Global Trade Exchange & Specialty Grains Conference. It’s poised to give international buyers and users of soy opportunities a chance to meet with American soy sellers, visit farms, and hear from the world’s foremost experts on trends shaping the global soy complex. “The unprecedented times we live in remind us of our responsibility to feed and nourish the world sustainably,” says USSEC CEO Jim Sutter. “Soy Connext helps international customers and U.S. soy farmers and industry make the right connections, hear and exchange perspectives on the latest trends, research, and data.” It also gives industry stakeholders the chance to ask the experts tough questions to help evolve their business strategy to deliver sustainable growth. *********************************************************************************** IndyCar Series Switching to 100 Percent Ethanol in 2023 The IndyCar racing series will switch to an entirely renewable fuel next year. IndyCar says that beginning in 2023, the race cars will be powered by a second-generation renewable ethanol racing fuel developed by Shell. “The fuel and lubricant and energy solutions developed through our strategic relationship with IndyCar and the Penske Corporation can ultimately help accelerate reduced carbon emissions from transport in many sectors of the economy,” says Carlos Maurer, an executive vice president with Shell. “Our motorsports technical alliances around the world provide a testing ground for fuel and lubricant technologies and products in demanding road conditions.” The manufacturing process for IndyCar’s ethanol will be less exotic than the low-carbon fuel Formula 1 is considering for 2026. The company says it will use sugarcane waste and other renewable feedstocks in its biofuel manufacturing process. The switch will enable at least 60 percent less carbon dioxide emissions when compared to fossil fuel gasoline.
| Rural Advocate News | Wednesday June 1, 2022 |
Wednesday Watch List Markets The Institute of Supply Management's U.S. index of manufacturing for May is due out at 9 a.m. CDT Wednesday, along with a report on U.S. construction spending for April. The Federal Reserve's Beige Book is scheduled for 1 p.m. Traders will stay up with the latest weather forecasts, watch for any export sales announcement and keep an eye on outside markets like crude oil and U.S. stocks. Weather A frontal boundary from West Texas to Lake Michigan is alight with showers and thunderstorms Wednesday morning. The front will slowly sag southward through the day and periods of showers developing along the front will draw in moisture from the Gulf of Mexico. The slow movement of the front and ample moisture will combine to create some heavy rainfall and potential flooding from West Texas through the southern Midwest. The Northern Plains get another dry day to allow for some drying.
| Rural Advocate News | Tuesday May 31, 2022 |
Deadline for USDA’s Climate-Smart Commodities Approaching The deadline for the USDA’s second round of funding for Climate-Smart Commodities is Friday, June 10. This funding pool is for partners proposing projects between $250,000 and $5 million. The proposals should emphasize the enrollment of small and-or underserved producers, and-or monitoring, reporting, and verification activities developed at minority-serving institutions. “We’re excited to see the many innovative projects designed to build new opportunities for these producers,” says USDA Undersecretary for Farm Production and Conservation Robert Bonnie. “The sheer number of applications we’ve already received is a testament to the high interest in this opportunity.” The undersecretary also says, from the very beginning, they’ve ensured that this effort is inclusive across a broad cross-section of agriculture. “In this funding pool, we’re especially looking for innovative approaches that expand markets for small and historically underserved producers,” Bonnie adds. Information on how to apply, frequently asked questions, and additional information and resources are available at usda.gov. *********************************************************************************** Ag Groups Respond to New USDA’s Proposed Poultry Rules Ag groups responded to USDA’s proposed poultry marketing disclosure requirements and the advanced notice of proposed rulemaking under the Packers and Stockyards Act. American Farm Bureau President Zippy Duvall says his organization appreciates USDA working to create more transparency in the poultry industry. “Farmers deserve to know what they are getting into and understand how they are getting paid,” he says. “Making sure farmers have access to important information about their poultry company, inputs, stocking densities, and feed disruptions is good for everyone in the food value chain.” He says there are no easy answers and that AFB will review these proposals in detail. National Farmers Union President Rob Larew says poultry growers have endured an unfair contracting system for far too long. “All livestock producers continue facing heavily concentrated markets with insufficient protections from anti-competitive practices,” Larew says. “We’re happy with the first in a series of three rules that are being introduced.” *********************************************************************************** Japan Commits to Double Its Ethanol Demand President Biden made a trip to Japan recently, and during discussions with the Japanese prime minister, Japan committed to reducing its dependence on imported petroleum by 2030. That means they’re doubling their demand for ethanol, including sustainable aviation fuel and on-road fuel, possibly representing more export opportunities for the U.S. The U.S. Grains Council says America’s Ambassador Rahm Emanuel continually supported expanding ethanol use in Japan. “Expanding bioethanol use in Japan is a strategic goal of the Council,” says USGC Vice President Cary Sifferath. “Ambassador Emanuel and his team have been an essential partner for USGC to discuss the benefits of increased biofuels use to the Japanese consumer and a way for Japan to meet its carbon emissions goals.” USGC President and CEO Ryan LeGrand and Sifferath recently traveled to Tokyo, where ethanol was a major topic of discussion. Japan currently ranks as the fourth-largest market for U.S. ethanol during the 2021-2022 marketing year. *********************************************************************************** West Nile Virus Still a Threat to Horses Despite Drought While much of the western U.S. endures widespread drought, people may think mosquito season won’t be as intense. However, just because there’s no rain doesn’t mean there are no mosquitoes. “Some of the most significant West Nile outbreaks have happened without significant rainfall,” says Dr. Justin Talley, Head of Entomology and Plant Pathology at Oklahoma State University. “Just because you don’t see water doesn’t mean there are no breeding areas around.” He shared four tips for protecting horses from West Nile Virus. The first is to vaccinate your horses. Number two is hanging high-powered livestock fans. Third, get rid of as much standing water as possible and clean the horses’ water sources once a week. The last is to minimize a horse’s exposure during mosquito feeding times at dusk and dawn. The disease can attack and inflame a horse’s nervous system and is spread by mosquitoes after feeding on infected birds and rodents. *********************************************************************************** Bill Would Prohibit China From Purchasing Ag Land in the U.S. Washington Representative Dan Newhouse recently introduced a bill aimed at preventing the Chinese government from purchasing public or private land in the U.S. The bill is called the Prohibition of Agricultural Land for the People’s Republic of China Act. The bill would also prevent the purchase of land by foreign nationals associated with the Government of China. Additionally, the legislation would prohibit the same associations from participating in any USDA programs except food safety inspections. “We hail from the greatest country in the world, and there is simply no reason we should be reliant on a communist country like China for our food supply,” Newhouse says. “If we cede responsibility of our food supply over to an adversarial nation, we could be forced into exporting food grown within our borders and meant for our own use.” China’s American agricultural land holdings have risen during the last decade to $2 billion worth of land. *********************************************************************************** Arkansas to Host Next Farm Bill Field Hearing Senate Ag Committee Chair Debbie Stabenow and Ranking Member John Boozman (BOZE-man) say the committee will hold a field hearing in Arkansas on Friday, June 17. The hearing is designed to get input from agricultural producers and stakeholders as the process of writing the next farm bill gets underway. “Our last farm bill passed with the most bipartisan support of all time,” Stabenow says. “At our first hearing in Michigan, we heard from farmers and others about how we can improve and strengthen this important legislation, grow our economy, and meet serious new challenges facing the country.” Arkansas Senator Boozman also says his state’s agricultural producers are proud to help feed and clothe the world. “It’s important to seek the input of our farmers and ranchers to strengthen and improve the policies affecting their operations,” Boozman says. Witnesses at the hearing will include agricultural producers, industry stakeholders, and rural community supporters.
| Rural Advocate News | Tuesday May 31, 2022 |
Tuesday Watch List Markets Back from the three-day weekend, traders will catch up on the latest weather happenings and any news, especially any updates from Ukraine. After an 8 a.m. CDT pause to see if USDA has an export sale announcement, there will be a report on U.S. consumer confidence for May at 9 a.m. and USDA's weekly report of grain export inspections at 10 a.m. Much attention will be given to planting progress updates in USDA's Crop Progress report at 3 p.m. Weather A system or series of disturbances that had moved through the Northern Plains over the Memorial Day weekend culminated in a stronger storm system Monday. That system pushed a cold front from the Southern Plains into the Midwest. Showers and thunderstorms continue along that front Tuesday morning and there may be some severe storms from the Texas Panhandle into Michigan throughout the day.
| Rural Advocate News | Friday May 27, 2022 |
Administration Steps to Strengthen Food Supply Chains Ag Secretary Tom Vilsack announced more support, resources, and new rules designed to strengthen the American food supply chains. The new actions will promote fair and competitive agricultural markets, prevent abuse of farmers by poultry processors, and make prices fairer for farmers and American consumers. One of those actions is a proposed rule under the Packers and Stockyards Act intended to protect poultry growers from unfair and deceptive practices in the meat and poultry industry. “Growers say the ‘tournament system’ of payment is ripe for abuse,” Vilsack says. USDA will also make $200 million available to provide financing to independent meat and poultry processors to start up or expand operations. Vilsack also announced another $25 million in investments for workforce training designed to create and expand upon good-paying jobs that can strengthen the meatpacking industry by attracting and retaining employees. USDA is also planning a complete review of its programs to ensure they promote competition. *********************************************************************************** New Chicken Regulations Are a “Solution Searching for a Problem” The USDA announced new regulations for the poultry industry that the National Chicken Council isn’t supporting. “This is a solution looking for a problem,” says Mike Brown, NCC President. “The last thing the administration should be doing is pushing increased regulations, red tape, and costs onto businesses at a time of record inflation and input costs.” The organization says this will do nothing to lower food prices, increase competition, or reduce inflation. “This will raise grocery bills for Americans and increase food insecurity,” Brown adds. The NCC says raising chickens under contract is one of the most reliable sources of income to help keep families on the farm. The contract provides income and insulation from market risks like feed costs, floods, and droughts. “It’s ironic that these regulations are getting proposed under the guise of promoting competition,” Brown says. “The performance-based structure of raising chickens is literally the definition of competition.” *********************************************************************************** Producers Can Request Voluntary CRP Termination The USDA will allow participants in the Conservation Reserve Program to request voluntary termination if they are in the final year of a CRP contract. They can make that request following the end of the primary nesting season for the fiscal year 2022. Participants approved for this one-time, voluntary termination don’t have to repay rental payments. It’s flexibility implemented this year to help mitigate the global food supply challenges caused by Russia’s invasion of Ukraine and other factors. “We’ve heard from many producers who want to better understand their options to help respond to global food needs,” says FSA Administrator Zach Ducheneaux. Producers will be able to hay, graze, begin land-preparation activities, and plant a fall-seeded crop before October 1, 2022. In colder climates, this flexibility may allow for better establishing a winter wheat crop or better prepare the land for spring planting. FSA will mail letters explaining options to producers with expiring contracts. *********************************************************************************** Over 40 Groups Ask USTR for Tariff Relief A diverse group of more than 40 American food and agriculture leaders sent a letter to U.S. Trade Representative Katherine Tai on tariffs. The groups are asking for the suspension, reduction, or elimination of tariffs to ease the burden of retaliatory tariffs on rural America. The letter was led by Farmers for Free Trade and came as the administration is working on a mandatory review of recently increased tariffs. Tariff changes are under review as part of the White House’s efforts to address inflation. “Tariff relief could not come at a more important time,” the letter says. “Rural America and small businesses are facing significant challenges due to the lingering impacts of COVID-19, logistical and supply chain disruptions, record inflation, and the increasing impact of the war in Ukraine.” The groups say removing tariffs on food and agriculture inputs and subsequent removal of burdensome retaliatory tariffs would provide immediate relief to U.S. food producers. *********************************************************************************** Strong Global Demand for Beef Facing Inflation Pressures The U.S. Meat Export Federation began its spring conference this week in San Antonio, Texas. USMEF President and CEO Dan Halstrom gave attendees a report on first-quarter red meat exports, which were impressive despite mounting economic and logistical challenges. He’s optimistic that 2022 results will be strong but cautioned that inflation pressures around the world are constricting consumer spending power. “To date, demand for U.S. red meat has been as strong as I’ve ever seen in all my years in the meat business and remarkably resilient,” Halstrom says. “But the question is at what point do these inflationary pressures start to constrict disposable income for the global consumer, and we see a crack in demand?” Red meat exports could potentially approach the $20 billion milestone this year. He also highlighted foodservice and retail trends that exploded during COVID-19 and are likely here to stay, such as grocery sales through e-commerce platforms. *********************************************************************************** Diary Industry Supports USDA Container Program for Ag Exports The National Milk Producers Federation and the U.S. Dairy Export Council welcome the USDA plan to offer additional support to agricultural exporters through the Commodity Container Assistance Program. The initiative will provide funding from the Farm Service Agency to exporters to reduce the costs of sourcing containers at the Oakland and Seattle-Tacoma “pop-up” port locations. “We’ve been asking for relief from these ocean shipping challenges for two years,” says NMPF president and CEO Jim Mulhern. “While we continue to seek solutions from carriers and Congress, these steps demonstrate USDA understands the challenges. This should offer immediate relief for exporters.” The pop-up sites are intended to offer off-terminal locations for empty container storage, increase access for agricultural shippers to use them, and free up port terminal space for freight operations. The FSA payments will help cover the costs of moving the containers between ports and pop-up yards, as well as storage at the pop-up sites.
| Rural Advocate News | Friday May 27, 2022 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the Census Bureau will release personal income and consumer spending data for April. Traders will be watching the latest weather forecasts, checking for any updates of Russia's offer to allow food and grain out of Ukraine and will also watch for any news of an export sale. Trading volume could be lower heading into the Memorial Day weekend, possibly opening the door to strange happenings. Weather A system that has brought moderate to heavy rain throughout the week continues to slowly push eastward on Friday. Showers continue over the eastern Midwest through the East Coast. A system in the Pacific Northwest will push into the Northern Plains and Canadian Prairies later today, bringing scattered showers and shutting the door on the good drying conditions for North Dakota and eastern Prairies. Waves of showers will continue through the weekend into early next week.
| Rural Advocate News | Thursday May 26, 2022 |
U.S. Dairy Supports U.S. Pursuit of Full Canadian USMCA Compliance The National Milk Producers Federation and U.S. Dairy Export Council Wednesday applauded the Biden administration for its initiation of a second U.S.-Mexico-Canada Agreement dispute panel. The dispute panel focuses on Canada’s ongoing refusal to meet its USMCA dairy trade obligations. The first USMCA dispute panel launched by the U.S. government determined in January that Canada violated the agreement's dairy tariff-rate quota provisions. On May 16, Canada published its final revised USMCA dairy TRQ approach, which failed to fix its USMCA-violating practices. To address the additional problems Canada’s revised approach has raised and to defend the integrity of the agreement, the U.S. Trade Representative’s Office has brought an additional case. NMPF President and CEO Jim Mulhern says, “Canada continues to flout these trade commitments and plays games rather than meet its signed treaty commitments.” The dairy groups say Canada’s updated TRQ system continues to block key stakeholders in the Canadian food and agriculture sector from accessing the TRQs. *********************************************************************************** UK’s Kendamil in Talks to Export Infant Formula to U.S. Kendamil is in advanced discussions with the Food and Drug Administration to become the first international manufacturer to export significant quantities of infant formula to the United States. Kendamil is a brand of Kendal Nutricare, and is the only British-made infant formula. Kendamil offers organic and conventional cow formulas, along with goat formula, which would be a first in the U.S., where, unlike in Europe, no goat milk is today certified for sale to infants under one year old. Kendamil has been in discussions with the FDA for several weeks since news first broke of the formula shortages and the measures announced from the Biden Administration to bring international brands into the United States. Ross McMahon, CEO of Kendal Nutricare commented, "We have received the call for assistance from the FDA and Kendamil stands ready to act.” Kendal Nutricare expects to meet the needs of at least 150,000 U.S. households during the import period. *********************************************************************************** Soybean Farmers Share 2023 Farm Bill Priorities The American Soybean Association Wednesday shared the organization’s 2023 Farm Bill priorities. ASA President Brad Doyle, who grows soybeans in Arkansas, says, “Getting to this point has involved a thoughtful information-gathering process that began back in September 2021.” Priorities for ASA include improving the Title I farm safety net for soybeans, continuing the voluntary, incentive-based, flexible approach to conservation programs, investing into promotion of U.S. commodities globally, building biobased and biofuels opportunities, and ensuring broadband coverage is accessible throughout rural America. As the House and Senate Agriculture Committees lay the foundation for the 2023 Farm Bill, ASA hopes its initial priorities list will provide insight and assure soy growers' interests are considered as the farm bill process continues with hearings this year and legislative development next year. Doyle adds, “We wanted to assure as many farmer voices and soy states as possible were involved to make this a comprehensive list tailored to their needs.” *********************************************************************************** Study Examines Competitiveness of U.S. Inland Waterways The National Waterways Foundation released a study this week focused on the current state of the U.S. inland waterways system. The study found that the ability for the United States to maintain a position of strength depends on a regular assessment of infrastructure needs and multimodal development strategies. Two factors, in particular, the aging infrastructure and competition from other countries' inland waterway networks, pose a risk to the economic and national security advantage of the United States. Increased investment levels from the Infrastructure Investment & Jobs Act offer an opportunity to greatly enhance the reliability and usefulness of the U.S. inland waterways system. Clearing the backlog of U.S. projects is needed to bring some facilities into more modern practice. Waterways Foundation Chairman Matt Woodruff adds, “We must be alert to the investments being made in the waterways of other nations that can erode our advantage and, where necessary, invest to increase the efficiency of our system to stay ahead.” *********************************************************************************** More Farmers Adding Fall Cover Crops to Fields Cover crops are an increasingly popular management practice farmers use to provide seasonal living cover between their primary commodity cash crops. Farmers often plant cover crops in the fall to provide winter cover for soil that otherwise would be bare. Over the past decade, USDA’s Economic Research Service says fall cover crop adoption has grown in the United States. On fields growing corn for grain, 0.6 percent of the acreage used a fall cover crop before the 2010 crop. By 2016, 5.5 percent of corn-for-grain acreage had a fall cover, and by 2021, 7.9 percent of corn-for-grain acreage followed a fall cover crop. This represents a 44-percent increase in fall cover crop adoption on corn-for-grain fields between 2016 and 2021. The growth in adoption of cover crops on cotton fields is similar, with a 46-percent increase between 2015 and 2019. The average growth in cover crop adoption was similar for each target crop, as evident in the average year-over-year changes. *********************************************************************************** Co-ops Can Lead the Way for On-Farm Private Broadband As American agriculture grapples with scarce labor and increasing costs, one solution could lie in precision agriculture applications that can maximize output while reducing costs. Crop and livestock producers can supercharge operational efficiency with advanced precision technologies such as data analytics, connected equipment, robotics and automation. The lack of affordable, reliable broadband access in rural America, however, has hindered widespread adoption of precision ag technologies. That may be changing with the increasing availability of private wireless networks. CoBank’s Knowledge Exchange reports agricultural cooperatives are in an ideal position to work with communication companies to deliver carrier-grade, high-speed private wireless networks to their farmer members at costs that were unthinkable just a few years ago. CoBanks Kenneth Scott Zuckerberg says, “Offering these network solutions could be a new, reliable revenue source for U.S. farm supply cooperatives.” On the farm, private networks can help facilitate the collection, transmission, storage and computation of large amounts of data in real-time.
| Rural Advocate News | Thursday May 26, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and updates of first quarter GDP and the U.S. Drought Monitor. A 9 a.m., there is a report on pending U.S. home sales for April, followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Traders will continue to examine the latest weather forecasts, news regarding Ukraine and any news of an export sale. Weather A system continues to slowly make its way eastward on Thursday. Areas of scattered showers and thunderstorms continue to press on east of the Mississippi River, with additional showers over Missouri as well. Areas of heavy rain and some severe weather will be possible. The Northern Plains has another dry day to allow for drainage and potentially additional planting in and around North Dakota before showers move back in Friday evening.
| Rural Advocate News | Wednesday May 25, 2022 |
USDA Invests $770 Million to Expand Market Opportunities for Rural Businesses Agriculture Secretary Tom Vilsack Tuesday announced $770 million to help create better market opportunities for rural businesses. The investments include $640 million for 122 projects to help people living in socially vulnerable communities. Vilsack says the investments “demonstrate how USDA remains committed to helping people in rural America create new and better market opportunities. USDA is making a total of 154 investments through three programs specifically designed to create economic opportunities for people and businesses in rural areas. The funding will help rural America keep resources and wealth right at home through job training, business expansion and technical assistance. It will help companies hire more workers and reach new customers. It will open the door to new economic opportunities for communities and people who historically have lacked access to critical resources and financing. It will also help entrepreneurs and business cooperatives create jobs, grow businesses, and find new and better markets for their products. *********************************************************************************** Lawmakers Press Surface Transportation Board on Rail Disruptions A bipartisan group of Senators urges the Surface Transportation Board to ensure reliable, consistent rail service for American industries and shippers. Republicans Chuck Grassley of Iowa and Kevin Cramer of North Dakota, along with Democrat Tammy Baldwin of Wisconsin, made the request in a letter with 19 other colleagues. The lawmakers say, “We are very concerned over the significant rail service disruptions occurring throughout the U.S. freight rail network.” Further, the group says, “We urge the STB to examine all constructive options towards ensuring reliable, consistent rail service is available to shippers across the U.S.” The letter also outlines concerns and issues raised by customers and labor organizations during an STB hearing last month. Farmers and grain shippers report they are unable to get empty railcars, leading to significant delays in delivering commodities to energy producers forced to curtail production. The letter is supported by the National Grain and Feed Association, National Mining Association, American Chemistry Council and Growth Energy. *********************************************************************************** Dairy Sustainability Alliance Meeting Addresses Marketplace Opportunities Navigating social, environmental and economic issues facing dairy businesses in a world shifting from COVID-19 restrictions took center stage at the 2022 Dairy Sustainability Alliance Spring Meeting. The Dairy Sustainability Alliance is a multi-stakeholder initiative of the checkoff-founded Innovation Center for U.S. Dairy and includes more than 165 companies and organizations. More than 270 representatives of the dairy value chain organizations, including 25 dairy farmers, attended in person or virtually, last week. Many of the organizations have adopted the U.S. Dairy Stewardship Commitment signaling support for farmers, cooperatives and processors who voluntarily advance sustainability leadership and transparently report progress. Dairy Management Inc. and Innovation Center CEO Barbara O’Brien says, “never has it been more urgent as we work to meet the growing demands and expectations of both customers and consumers around personal wellness, environmental sustainability and food security.” The event showcased many topics in dairy sustainability, highlighting the work of the alliance. *********************************************************************************** Bronaugh to Host Roundtable on Farmers’ Mental Health Agriculture Deputy Secretary Jewel Bronaugh (Bruh-NAW) travels to Wisconsin Friday to host a Roundtable on Farmers’ Mental Health. The event is part of the Department of Agriculture’s efforts in recognizing May as Mental Health Awareness Month. The Deputy Secretary will host the roundtable discussion with Senator Tammy Baldwin in Arlington, Wisconsin. From volatile market demand for their products to bad weather, farmers often face numerous challenges that can create or exacerbate stress, anxiety and trauma. USDA has worked to ensure that farmers and families in rural communities have access to the resources they need to address mental health challenges. In October, USDA announced an investment of nearly $25 million for 50 grants supporting Farm and Ranch Stress Assistance Network State Department of Agriculture projects, which connect farmers, ranchers, and others in agriculture-related jobs to stress assistance programs, which provide vital support, ranging from mental health and legal issues to family and youth stress. *********************************************************************************** Farm Bureau to Host ‘Farmers Saving Lives’ Virtual Event for Mental Health Month In recognition of May as Mental Health Month, the American Farm Bureau Federation will host a free virtual event, Farmers Saving Lives, on Tuesday, May 31, at 2:00 p.m. Eastern. The live event will feature compelling stories from three Farm Bureau members who believe that advocating for mental health wellness is a way to save lives in rural and farming communities. Farmers, ranchers and their families are encouraged to attend via telephone, smartphone or tablet from planters, harvesters, greenhouses, dairy barns, farm trucks, classrooms and carpool lines. AFBF President Zippy Duvall says, “We’re holding this virtual event on the last day of Mental Health Month to remind everyone that our work does not stop on June 1 – it continues throughout the year.” According to AFBF national research polls, a strong majority of farmers and farmworkers say financial issues, farm or business problems and fear of losing the farm impact farmers’ mental health. You can register for the event online, and learn more at fb.org. *********************************************************************************** U.S. Wine Imports Reach Nearly $7.5 Billion in 2021 Growing consumption of wine in the U.S. has contributed to an increase in wine imports, from 127 million gallons in fiscal year 2000 to 456 million gallons in 2021, reaching nearly $7.5 billion in value. USDA’s Economic Research Service reports most wine imports come from the European Union, accounting for 75 percent of the total value and 50 percent of the volume. Specifically, the top two countries of origin, Italy and France, each supplied about $2.5 billion in wine imports in 2021, although the volume from Italy was more than twice that of France because of its lower average price. In 2020, imports from the EU temporarily decreased in response to a 25-percent U.S. tariff placed in late 2019 on French, German, Spanish, and English wine that was lifted in early 2021. While the United States is a net importer of wine, it exported $1.5 billion in 2021 to destinations including Canada, the United Kingdom, and Japan.
| Rural Advocate News | Wednesday May 25, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, traders will catch the April report of U.S. durable goods orders and then pause at 8 a.m. to see if USDA has an export sale. The Energy Department's weekly report of energy inventories, including ethanol production is set for 9:30 a.m., followed by a recap of the minutes of the latest Federal Reserve meeting at 1 p.m. The latest weather forecasts remain important and the more hopeful among us await word of Russia's surrender. Weather A storm system that has brought moderate to heavy rainfall across the Central and Southern Plains earlier this week is spreading those showers eastward across the Mississippi River on Wednesday. More areas of moderate to heavy rain are expected and may cause some localized flooding and planting delays. Dryness in the Northern Plains will promote drying of soils and planting progress for the next couple of days.
| Rural Advocate News | Tuesday May 24, 2022 |
Farm Groups Welcome Indo-Pacific Economic Framework The Biden Administration Monday announced the Indo-Pacific Economic Framework. The White House says the plan is a 21st century economic arrangement designed to tackle 21st-century economic challenges. Those challenges include the digital economy, ensuring secure and resilient supply chains, and major investments in clean energy. The plan will engage partners that facilitate agricultural trade through science-based decision-making and the adoption of sound, transparent regulatory practices. Agriculture groups welcomed the launch of the framework. U.S. Grains Council President and CEO Ryan LeGrand says the framework “is a new approach to trade negotiations that will hopefully still create the same positive, high-standard outcomes for U.S. farmers." American Farm Bureau Federation President Zippy Duvall says the framework "will help reduce barriers, improve the adoption of science-based standards and grow American agricultural exports." Krysta Harden, U.S. Dairy Export Council President and CEO, adds the framework “offers a chance for the United States to have a positive impact on the trading environment in a vital area of the world.” *********************************************************************************** Ag Groups Call For Withdrawal of Solicitor General’s Supreme Court Brief on Glyphosate In a letter to President Biden, 54 agricultural groups expressed concern with a recent amicus brief submitted by the U.S. Solicitor General to the Supreme Court. The brief advises the court against taking up a case regarding pesticide labels. The groups, including the American Farm Bureau Federation and major U.S. commodity organizations, called on the president to swiftly withdraw the brief. They warned the new policy would set a dangerous precedent that threatens the science-based regulatory process. The groups are worried the new policy, along with having environmental impacts, could ultimately hinder the ability of U.S. farmers to help meet growing global food needs intensified by the invasion of Ukraine. At question is whether California can require a cancer warning label for the popular herbicide glyphosate when thousands of studies, decades of scientific consensus, and numerous global regulatory bodies—including the U.S. Environmental Protection Agency—agree the herbicide is not a carcinogen. *********************************************************************************** Lack of Grain Exports Driving Global Hunger A global food crisis, already impacted by the COVID-19 pandemic and climate change, is being driven to famine levels worldwide by the war in Ukraine and the resulting lack of grain exports. The United Nations Security Council last week heard from experts on the war's impact on global food security. David Beasley, Executive Director of the World Food Program, stated, "When a nation that is the breadbasket of the world becomes a nation with the longest bread line of the world, we know we have a problem." Even before the Ukraine crisis, the world was already facing an unprecedented, perfect storm because of conflict, climate change and the COVID-19 pandemic. And, price increases in major food crops have made an additional 400 million people food insecure over the last five months. Some experts warn the world only has ten weeks of wheat supply left. Ukraine and the Russian Federation together export 30 percent of global cereals and 67 percent of sunflower oil. *********************************************************************************** Retail Food Price Inflation Varies by Location New data from USDA’s Economic Research Service shows retail food price inflation varies by locality. From 2012 to 2021, increases in retail food prices ranged from an average of 2.4 percent a year in Honolulu, Hawaii, to 0.9 percent in the Dallas-Fort Worth, Texas, area. Retail food includes food bought in grocery stores as opposed to restaurants. Differences in transportation costs and retail overhead expenses, such as labor and rent, can explain some of the variation among cities because retailers often pass local cost increases on to consumers in the form of higher prices. Differences in consumer preferences among cities for specific foods may help explain variation in inflation rates, as well. For example, a city whose residents strongly prefer foods with less price inflation, such as fresh fruits and vegetables, might experience lower food-at-home price inflation than a city whose residents buy more beef and veal. Across the United States, prices increased by an average of 1.4 percent a year over the ten-year period. *********************************************************************************** Lawmakers Raise Concerns about FDA Guidance for Plant-Based Beverages A group of lawmakers tell the White House there's "no reason" to start allowing regulation regarding plant-based beverages labeled as animal products. Senator Cory Booker, a Colorado Democrat, and Mike Lee, a Utah Republican, led the effort in a letter to the White House Office of Management and Budget. The lawmakers say, “for decades, the FDA has declined to clarify standards for plant-based milks, even as other federal agencies have increasingly adopted plant-based milks and names into programs.” The letter highlighted a recent legal ruling that “found that the use of qualifying terms such as soy, almond or oat next to the term ‘milk’ mitigates against confusion regarding nutritional equivalency.” The letter also outlined that the “FDA has not previously asked producers to disclose other wide variations in nutritional components” - including among milks derived from different animals. However, label clarity has long-been a priority for U.S. dairy groups. The National Milk Producers Federation points out that the FDA's own standards define milk as an animal product. *********************************************************************************** Gas Prices Jump, Diesel Declines The national gas price increased for the fifth straight week, while diesel declined slightly. GasBuddy reports the average national gas price increased 11 cents last week to $4.57 per gallon, while diesel fell 1.7 cents to an average of $5.53 per gallon. GasBuddy's Patrick De Haan says, “Gasoline prices surged over the last week to new record highs, but have finally started to slow their rise with diesel also finally cooling off.” Still, with more Americans planning to hit the road for Memorial Day this year compared to last, prices will be over $1.50 per gallon higher than last year. Oil has seen slight upward moves as China lockdowns have eased, boosting demand for petroleum, while the start of the U.S. summer driving season is just days away, and could prevent oil from seeing any significant downturns. U.S. crude oil inventories fell 3.4 million barrels last week. U.S. retail gasoline demand saw a slight fall last week, down .6 percent from the prior week.
| Rural Advocate News | Tuesday May 24, 2022 |
Tuesday Watch List Markets Traders will pause at 8 a.m. CDT Tuesday to see if USDA has an export sales announcement and then notice the 9 a.m. report of April new home sales. The latest weather forecasts continue to get widespread attention as well as any news regarding Ukraine. Weather A storm system in the Southern Plains will bring areas of moderate to heavy rainfall on Tuesday, with additional showers to the southwestern Midwest, Delta, and Southeast as well. Heavy rain in parts of Kansas, Oklahoma, and Texas could cause some localized flooding. Dryness in the Northern Plains could lead to some better planting progress where areas have been too wet.
| Rural Advocate News | Monday May 23, 2022 |
Strong Farm Economy Continues to Support Credit Conditions Agricultural credit conditions improved in the first quarter of 2022, and farm real estate values continued to increase alongside strength in the American farm economy. Following a year of accelerating increases, the value of non-irrigated cropland across much of the country has soared through March of this year. The sharp growth in land values persisted despite a slight increase in farm loan interest rates. Farm loan repayment rates continued to increase, and credit conditions remained strong. The Kansas City Fed says the outlook for agricultural credit conditions remained optimistic alongside persistently strong commodity prices. However, many district lenders expect conditions to soften in the coming months alongside the pressure on profit margins from higher input costs and harsh drought conditions in large parts of rural America. Farm real estate markets also remain strong, but smaller profit margins or higher interest rates could limit gains in land value in the year ahead. *********************************************************************************** Feed Industry Association’s Board Advocates in Washington, D.C. The American Feed Industry Association’s Board of Directors recently held its annual spring meeting in Arlington, Virginia. As part of the meeting schedule, they spent time advocating for key industry priorities on Capitol Hill and conducted other official business, including approving new Board leadership and members. The 44 Board members met with elected officials in the House and Senate about improving the Food and Drug Administration’s animal food review program. They also talked about resolving ongoing supply chain and export issues that are hindering the industry’s ability to satisfy customers’ orders in a timely and cost-effective way. Board members also highlighted the industry’s work to provide solutions to national climate change priorities. “Our Board leadership impressed upon policymakers how removing key regulatory and trade barriers now will secure our industry’s ability to continue delivering feed, ingredients, and pet food to the marketplace into the future,” says AFIA President and CEO Constance Cullman. *********************************************************************************** Smart Farm Technology Open to Attacks by Hackers Experts say it’s important to realize that modern farm technology is vulnerable to attacks by hackers, which could leave the supply chain exposed to further risk. The University of Cambridge issued a report noting that automatic crop sprayers, drones, and robotic harvesters are susceptible to an attack. BBC says both the United Kingdom’s government and the FBI are warning that the cyber-attack threat is growing. John Deere says it’s working to fix any weak spots in its software. James Johnson, Deere’s chief information security officer, says the company has been working with several ethical hackers to find vulnerabilities. CNH Industrial is also working to improve its security posture. Benjamin Turner, chief operating officer at a British company called Agrimetrics, says, “Hacking into one tractor can upset a single farmer’s profitability. Hacking into a fleet of tractors can suddenly give you the power to affect yields in whole areas of a country.” *********************************************************************************** India Considers Allowing More Wheat Shipments India has a great deal of wheat sitting at ports because of a sudden ban on exports that prevented dealers from loading cargoes. Reuters says trade and government sources say that the Indian government is considering allowing traders to ship out some of that wheat. The Indian government banned wheat exports over a week ago because of a heatwave that hurt the country’s wheat output. The sudden prohibition on shipping wheat left 1.8 million tons of grain at India’s ports with nowhere to go. Last Tuesday, the government gave permission to ship grains awaiting customs clearance before they can get shipped out of the ports. However, traders are putting pressure on the government to further relax its restriction on grain shipments. A New Delhi-based grain dealer says, “Piecemeal relaxations are not going to help, and the government needs to resolve the issue in the next few days to avoid a chain of payment defaults.” *********************************************************************************** Hereford Association Researching Sustainable Genetics The American Hereford Association is partnering with Colorado State University on a research project regarding sustainable genetics. AHA executive vice president Jack Ward says individual cattle producers and the collective beef industry will continue to get asked to do more with less as it relates to environmental and economic sustainability. “That’s why we’re excited to begin this cooperative research agreement with Colorado State University,” Ward says. “It will leverage decades of AHA research and data collected by our members aimed at characterizing genetics associated with production efficiency, which plays a key role in environmental and economic sustainability.” More specifically, the research will enhance understanding of the genetic differences in seedstock relative to methane production and nitrogen excretion. As a genetic trait in cattle, methane emission appears to be moderately inheritable with modest-to-strong correlations to the economically relevant production traits. Direct emissions from the animal ag sector account for 3.8 percent of U.S. greenhouse gas emissions. *********************************************************************************** Growth Energy, EPA Reach Settlement on 2023 RVO Deadline Growth Energy and the Environmental Protection Agency reached a settlement on a deadline for issuing the 2023 Renewable Volume Obligations for blending ethanol into the fuel supply. The EPA is expected to file a notice in the Federal Register on Monday seeking comment on a proposed decree that would require the EPA propose the 2023 RVOs by no later than September 16, 2022. The agency would then finalize it no later than April 28, 2023. EPA’s notice comes after Growth Energy filed a notice of intent to sue and a complaint in federal district court after the EPA failed to set the RVOs by the Congressionally-mandated deadline. “Securing a deadline for the 2023 RVO is a significant victory in our mission to ensure certainty when it comes to biofuel blending says Growth Energy CEO Emily Skor, “especially as we face a new era of the RFS when volumes are set by EPA and not Congress,”
| Rural Advocate News | Monday May 23, 2022 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts, news from Ukraine and pause at 8 a.m. CDT to see if USDA announces an export sale. The stock market will also get plenty of attention after major indices toyed with new one-year lows last week. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Canadian markets are closed Monday for Victoria Day. Weather A disturbance in the Southeast and a storm system developing in the Plains will make for some pretty wet conditions for a lot of the country on Monday. Both of these features slowly move east this week, keeping many areas wet and causing some planting delays. Moderate to heavy rainfall potential exists in the drought areas in the southwestern Plains. It is likely too late to help out wheat, but could benefit summer crops, especially corn and soybeans.
| Rural Advocate News | Friday May 20, 2022 |
Senate Legislation to Address Baby Formula Shortage Senate Ag Chair Debbie Stabenow and Ranking Member John Boozman (BOZE-man) led a bipartisan group of senators who introduced legislation to address baby formula shortages. The bill is aimed at helping families who rely on the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). The Access to Baby Formula Act has a companion bill in the House. It would give USDA more flexibility during a crisis like the shortages currently facing the country. The flexibility would ensure that the brand or type of formula families can buy isn’t restricted by program rules, allowing families to purchase whatever is available in the store. Formula manufacturers would be required to have a plan in place to respond to shortages. “This is an extremely stressful time for parents who are looking high and low for baby formula,” Stabenow says. “Almost half of all babies born in the U.S. rely on the WIC program.” *********************************************************************************** Nutrien to Build World’s Largest Clean Ammonia Plant in Louisiana Nutrien says it is evaluating a site in Louisiana as the place to build the world’s biggest clean ammonia facility. The new plant would leverage low-cost natural gas, tidewater access to world markets, and high-quality carbon capture and sequestration infrastructure at its existing facility in Geismar, Louisiana. The goal would be to serve the growing demand in agriculture, industrial, and emerging energy markets. “Our commitment to developing and using both low-carbon and clean ammonia is prominent in our strategy to provide solutions that will help meet the world’s decarbonization goals while sustainably addressing global food insecurity,” says Ken Seitz, Nutrien’s Interim President and CEO. The plant will have an annual production capacity of 1.2 million metric tons of clean ammonia and capture at least 90 percent of its carbon emissions. That means the new facility will be able to permanently sequester more than 1.8 million metric tons of carbon in dedicated geological storage every year. *********************************************************************************** Kansas/Oklahoma Winter Wheat Tour Finding Lower Yields On Wednesday, scouts on the Wheat Quality Council’s 2022 winter wheat tour traveled from Colby to Wichita, Kansas, stopping in wheat fields along six different routes. The scouts surveyed 254 wheat fields throughout western, central, and southern Kansas and northern counties in Oklahoma. The wheat in Southwest Kansas looks rough because of drought, and South Central Kansas is struggling because of dryness. Wheat following corn generally had poor yields, while wheat on fallow had some of the higher yields. The calculated yield was 37 bushels per acre in Kansas. Chris Kirby from the Oklahoma Wheat Commission reported that the state’s production is estimated at 60 million bushels this year, down from 115 million last year. Wheat harvest on the southern border of Oklahoma began this week, and with temperatures expected well above 100 degrees, the harvest will move much faster. USDA estimates that Oklahoma will likely yield 25 bushels an acre, down from 39 last year. *********************************************************************************** U.N. Wants Ukraine’s Ports Opened for Grain Shipments The United Nations is talking with Russia about the possibility of opening up Ukraine’s Black Sea ports for grain shipments to get exported. Ukraine is one of the largest grain producers in the world and usually exports goods through its seaports. However, Russia controls the Black Sea ports, which has forced Ukraine to export by train or through its smaller ports along the Danube River. Reuters says that Russia responded to the U.N. appeal by saying that sanctions on Russia would have to get reviewed if it were to allow the ports to reopen. U.N. Food Chief David Beasley appealed directly to Russian President Vladimir Putin, saying, “If you have any heart at all, please open these ports.” Russia’s Deputy Foreign Minister says the sanctions imposed on Russia by the U.S. and EU are interfering with normal free trade, including food products like wheat, fertilizers, and many other goods. *********************************************************************************** NAMI Responds to “Special Investigator” Legislation The House Agriculture Committee voted to approve the Meat and Poultry Special Investigator Act, and the North American Meat Institute called it “redundant, wasteful, and costly.” Julianna Potts is CEO of NAMI, and she says, “The committee voted to approve the bill despite our opposition, along with the opposition from the country’s largest livestock producer organizations.” She also says USDA and the Justice Department already have the authorities the bill would grant, making this expansion of government bureaucracy with its required staff and offices “duplicative.” Her organization points out that the special investigator this bill would establish would feel emboldened and obligated to bring as many new cases as possible, warranted or not, to test the legal limits of the new rules. “The resulting legal uncertainty and market chaos will accelerate unpredictable changes in livestock and poultry marketing that will add costs to both producers and consumers during a time of high inflation,” Potts says. *********************************************************************************** More Cotton Growers Take Part in Cotton Trust Protocol During Year Two The U.S. Cotton Trust Protocol is designed to bring quantifiable and verifiable goals and measurements to the key sustainability metrics of U.S. cotton production. The good news is more growers took part during the 2021-2022 crop year than did during the program’s pilot. The initiative’s new vision is to set a new standard in sustainable cotton production where full transparency is the reality and continuous improvement in reducing the environmental footprint is the central goal. “During our second year, we doubled the number of U.S. cotton growers in the program with an estimated 1.1 million cotton acres enrolled,” says Dr. Gary Adams, president of the Cotton Trust Protocol. Virtually all of the top 100 global brands created lists of sustainable raw materials and publicly stated their sourcing will come from these lists over the next 5-10 years. The Trust Protocol was designed to meet and exceed the rigorous criteria for the lists.
| Rural Advocate News | Friday May 20, 2022 |
Friday Market Watch Markets USDA's cattle on-feed report for May 1 is the only significant report on Friday's docket and will be out at 2 p.m. CDT, well after the market close. Traders may be a little gun shy after Wednesday, keeping part of their attention on happenings in the stock market and other parts on the latest weather forecasts, any export sales news and events in Ukraine. Weather A strong cold front across the Upper Midwest and Central Plains will push southeast on Friday. Scattered showers and thunderstorms will follow the front and a few severe storms will be possible. Some heavier rain in spots will lead to some more planting delays. Cold air funneling in behind the front will lead to a mix of rain and snow in the Northern Plains and some accumulating snow in the Colorado foothills later today into Saturday. Frosts are expected across a wide area of the Plains overnight.
| Rural Advocate News | Thursday May 19, 2022 |
Study: Agricultural Export Programs Offer Excellent Returns A recent economic study indicates public-private U.S. agricultural export market development programs remain highly effective and generate a substantial return on investment. The study, welcomed by the Coalition to Promote U.S. Agricultura Exports, was conducted by IHS Markit and Texas A&M University. The researchers say MAP and FMD have accounted for 13.7 percent, or almost $648 billion, of all the revenue generated by U.S. agricultural exports between 1977 and 2019. In letters sent last month, members of the Coalition and additional organizations asked U.S. House and Senate agricultural appropriations subcommittee leadership to maintain funding of at least $200 million for the Market Access Program and $34.5 million for the Foreign Market Development program in fiscal year 2023. Citing strong competition for growing global food demand, the organizations said, “these modest investments are invaluable as we race to reclaim global export markets shut off during the pandemic and diversify markets amid war and geopolitical unrest.” *********************************************************************************** NCBA Condemns Meat and Poultry Special Investigator Act The National Cattlemen’s Beef Association Wednesday condemned the Meat and Poultry Special Investigator Act of 2022, approved by the House Agriculture Committee. NCBA Vice President of Government Affairs Ethan Lane says the legislation was rushed through the legislative process “without consideration of the confusing bureaucratic mess it would create.” The special investigator bill would create a new position in the Department of Agriculture with prosecutorial and subpoena power. The North American Meat Institute agrees in a statement, adding, “USDA and the Department of Justice already have the authorities this bill would grant making this expansion of government bureaucracy.” However, National Farmers Union says the bill would increase enforcement of competition laws and boost USDA’s resources to investigate abusive market practices. NFU President Rob Larew says, “Greater enforcement of competition laws by USDA will better ensure America’s independent family farmers and ranchers have a chance to succeed in today's marketplace, now dominated by monopolies.” *********************************************************************************** Spanberger, Gonzalez, Introduce American Food Supply Chain Resiliency Act House lawmakers Abigail Spanberger, a Virginia Democrat, and Anthony Gonzalez, An Ohio Republican, introduced the American Food Supply Chain Resiliency Act this week. The bipartisan legislation seeks to strengthen supply chains across the agriculture industry and lower food costs for consumers. The bill would establish Supply Chain Regional Resource Centers through cooperative agreements with the Department of Agriculture. The centers would offer locally tailored coordination, technical assistance, and grants — leading to more resilient, diverse, and connected supply chains. USDA recently announced its intention through the Agricultural Marketing Service to create Regional Food Business Centers. The Spanberger-Gonzalez legislation would codify the centers, renaming them Supply Chain Regional Resource Centers. Under their legislation, these Centers would support supply chain coordination in their region, fund technical assistance providers to offer guidance to food businesses and farms, and provide small grants to entities looking to expand or start their operations in a certain region. *********************************************************************************** Food Away From Home Spending Dropped During Pandemic The first year of the COVID-19 pandemic saw the temporary closures of restaurants in the United States, prompting a decline in Food Away From Home Spending. Spending decreased at each of the nine types of food-away-from-home outlets measured in the USDA Economic Research Service’s Food Expenditure Series from 2019 to 2020. Although existing infrastructure, such as drive-through services, enabled limited-service restaurants to comply with pandemic safety measures, these establishments still saw a 6.7-percent decline in annual spending. Full-service restaurants, which accounted for more Food Away From Home spending than all other outlets from 1997 to 2019, experienced a decrease in spending of 31.7 percent in 2020. This was partly due to pandemic-related closures during some of the year. Hotels and motels, recreational places, and drinking establishments also experienced closures and capacity restrictions throughout much of 2020. Food spending fell 42.9 percent at hotels and motels, 37.7 percent at recreational places, and 40.7 percent at drinking places. *********************************************************************************** Wholesale Prices Show Another Big Increase The Consumer Brands Association cautioned that rising costs on manufacturers have not slowed and show no signs of doing so. Citing data from the Bureau of Labor Statistics last week, The April Producer Price Index showed an 11 percent year-over-year rise. For food specifically, wholesale prices rose 14.5 percent, showing the outsized impact consumer packaged goods companies are feeling. Consumer Brands President and CEO Geoff Freeman says, “This is the 14th straight month that we’ve seen wholesale prices push above the historical trend line.” Freeman adds, “The percentages may fluctuate month-to-month, but the story has remained the same — the cost to make and ship goods is out of control.” Since the pre-pandemic era, wholesale costs for the industry have increased 35 percent. The spike significantly impacts industry operations, as approximately 70 percent of CPG companies’ costs come from ingredients and energy. Further, key commodities showed sharp increases over last April, along with freight and fuel. *********************************************************************************** Proposed Fertilizer Policies Could Protect Farmer Profits, Environment A new University of Illinois study explores potential policy solutions to reduce nitrogen loss while still protecting farmers’ bottom lines. Federal and state governments have shied away from regulating nitrogen fertilizer use, but voluntary and incentives-based programs have not been particularly successful, according to the researchers. University of Illinois assistant professor Nicolas Martin says, “We want to generate discussions on such policies, rather than provide definitive answers on which policy will be the best.” The first policy would modify price ratios, imposing a tax on nitrogen at a set ratio relative to the corn price. The second policy would charge farmers a fee for excess nitrogen leaching from fields above baseline levels. The third would subtract nitrogen removed in grain at harvest from nitrogen applied as fertilizer and would charge a fee for the balance. The final policy reflected a voluntary nitrogen reduction program like current programs in the Midwest. Among the four policies, the nitrogen leaching fee showed the best outcome.
| Rural Advocate News | Thursday May 19, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday along with U.S. weekly jobless claims and an update of the U.S. Drought Monitor. There are reports on U.S. existing home sales in April and the Conference Board's U.S. index of leading indicators at 9 a.m., followed by the Energy Department's weekly natural gas storage report at 9:30 a.m. Weather forecasts and any export sales news also remains important to traders. Weather A system moving through the North-Central U.S. and a small disturbance moving from the Southern Plains eastward will be the focus for scattered showers and thunderstorms throughout the day Thursday. Some areas of severe weather will be possible along with heavy rainfall that will make for more difficult planting conditions. Heat will be a concern across the Southern Plains as temperatures move back into the triple digits. Cold air will filter into the Northern Plains later today as the system spreads southeast across the North-Central U.S. That may lead to some snow mixing in tonight across the Northern Plains.
| Rural Advocate News | Wednesday May 18, 2022 |
Stabenow Calls on USDA to Address Effects of Baby Formula Shortage for WIC Families Senate Agriculture Committee Chair Debbie Stabenow called on the Department of Agriculture Tuesday to address the infant formula shortage for those relying on the Special Supplemental Nutrition Program for Women, Infants, and Children program. The Michigan Democrat says, "Millions of Americans rely on the WIC program to get baby formula for their children, so the current shortages are extremely concerning for parents across our country." USDA is providing WIC families with the flexibility to use their benefits to buy different types of formula products. Senator Stabenow requested more information from USDA on its use of these and other flexibilities and opportunities for additional action to support WIC families. Meanwhile, Abbott, the company whose infant formula plant is shut down, has agreed to enter a consent decree with the Food and Drug Administration. The decree is an agreement between FDA and Abbott on the steps necessary to resume production and maintain the facility. *********************************************************************************** USDA Extends Deadline for Public to Comment on Input Competition Challenges The agriculture sector has more time to comment on the impacts of concentration and competition challenges in seed, fertilizer, other agricultural inputs, and retail markets. The Department of Agriculture this week announced a 30-day extension to the public comment period. The new deadline is June 15, 2022. Three requests for information were published in the Federal Register on March 17, 2022, each with a 60-day comment period ending May 16, 2022. USDA seeks information about competition matters related to fertilizer, seed and agricultural inputs, particularly related to the intellectual property system, and food retail, including access to retail for agricultural producers and small and medium-sized food processors through wholesale and distribution markets. To enhance fair and competitive markets, the initiative supports additional fertilizer production for farmers and spurs competition to address rising costs, including price hikes from the war in Ukraine, and recent supply chain disruptions. All written comments should be posted online at www.regulations.gov. *********************************************************************************** USDA Accepting Applications to Help Cover Costs of Organic, Transitioning Producers The Department of Agriculture is accepting applications for the Organic and Transitional Education and Certification Program and Organic Certification Cost Share Program. The programs help producers and handlers cover the cost of organic certification, along with other related expenses. Farm Service Agency Administrator Zach Ducheneaux (DOO-shah-know) says, “By helping with organic certification costs – long identified as a barrier to certification – USDA has helped producers participate in new markets while investing in the long-term health of their operations.” To apply, producers and handlers should contact the FSA at their local USDA Service Center. As part of completing the applications, organic producers and handlers will need to provide documentation of their organic certification and eligible expenses. Organic producers and handlers may also apply for the Organic Certification Cost Share Program through participating State agencies. The Organic Certification Cost Share Program covers 50 percent or up to $500 per category of certification costs in 2022. *********************************************************************************** Rural Land Market Outlook Remains Strong Following record sales in 2021, the rural land market continues to surge this year. This offers opportunities for both sellers and buyers of farm, recreational and other rural land, according to Whitetail Properties Real Estate. Low property inventories resulting from last year's strong market point to land values remaining high for sellers. Meanwhile, rising interest rates this year could suggest reduced demand, but that is only one factor. Alex Gyllstrom, the company's marketing director, says, “It can be projected that rural land values will stay at the higher end of the market because of current inflation.” While these factors create a sense of urgency for those looking to sell land, they also present an upside for buyers. Whitetail Properties Real Estate offers advice for sellers to provide curb appeal, document farm value, and get leases in writing. For buyers, the company suggests they work with a rural lender, think long-term, and consider a partnership agreement. *********************************************************************************** Iowa Governor Signs Biofuels Legislation into Law Iowa Governor Kim Reynolds Tuesday signed into law some of the most comprehensive state biofuels legislation in the nation. The legislation is expected to boost the sale of higher blends of biodiesel through an incentive-based approach. Among other things, the bill increases a Biodiesel Production Tax Credit from two to four cents per gallon while updating the state’s Renewable Fuel Infrastructure Program to increase access to higher blends of biofuels. Clean Fuels CEO Donnell Rehagen says, “Iowa joins the ranks of Illinois, Minnesota and others with some of the most forwarding-thinking legislation that values the production and use of biodiesel.” The legislation also would provide access to E15 statewide by 2026 and update the E15 promotion tax credit to $0.09 per gallon year-round through 2025. Growth Energy CEO Emily Skor applauded the bill’s passage, saying the bill “offers drivers across Iowa the opportunity to not only save money at the pump but to make a simple change for the environment.” *********************************************************************************** Cargill Announces Plans to Build new Soybean Plant in Southeast Missouri Cargill Tuesday announced plans to build a new soybean processing facility in Southeast Missouri. The facility will have an annual production capacity of 62 million bushels of soybeans. Cargill anticipates breaking ground on the project early next year with plans to be operational in 2026. The new facility will add approximately 45 full-time positions to the region when complete. With its location on the Mississippi River, the facility will operate year-round and provide farmers opportunity to take advantage of increased domestic demand versus relying solely on seasonal exports. Missouri Soybeans CEO and Executive Director Gary Wheeler says, “Missouri Soybeans is very pleased with the new build of a soybean crush facility in Pemiscot County and the direct impact it will bring to our farmers in Southeast Missouri.” Cargill has had a presence in Missouri since 1936 and currently operates across 11 locations in the state and employs nearly 1,200 people.
| Rural Advocate News | Wednesday May 18, 2022 |
Wednesday Watch List Markets Wednesday morning's reports start with April housing starts at 7:30 a.m. CDT, followed by the Energy Department's weekly energy inventories, including ethanol production at 9:30 a.m. Traders will check the latest weather forecasts, pause at 8 a.m. for a possible export sale announcement and stay tuned to events in Ukraine. Weather A disturbance moving through the Midwest is and will continue to create scattered showers across mainly the Midwest throughout the day. This could lead to some areas of planting delays. A few showers and thunderstorms will also be possible in the southwestern Plains, but be very spotty and unhelpful to the current drought situation. Heat will exacerbate the drought as well.
| Rural Advocate News | Tuesday May 17, 2022 |
USDA to Provide Approximately $6 Billion to Commodity and Specialty Crop Producers The Department of Agriculture Monday announced that commodity and specialty crop producers impacted by natural disaster events in 2020 and 2021 will soon receive emergency relief payments. The payments totaling approximately $6 billion come from the Farm Service Agency's new Emergency Relief Program to offset crop yield and value losses. Agriculture Secretary Tom Vilsack says, "These emergency relief payments will help offset the significant crop losses due to major weather events in 2020 and 2021 and help ensure farming operations are viable this crop year." Last September, President Biden signed into law the Extending Government Funding and Delivering Emergency Assistance Act, which includes $10 billion in assistance to farmers impacted by wildfires, droughts, hurricanes, winter storms, and other eligible disasters experienced during calendar years 2020 and 2021. FSA recently made payments to ranchers impacted by drought and wildfire through the first phase of the Emergency Livestock Relief Program. More details, including eligibility, are online at fsa.usda.gov. *********************************************************************************** Dairy Groups: Retaliatory Tariffs Required as Canada Refuses its USMCA Obligations National Milk Producers Federation and the U.S. Dairy Export Council Monday called on the U.S. government to levy retaliatory tariffs on Canada. The call comes after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement concerning dairy market access. In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas system violates the terms of USMCA. Canada issued a new TRQ proposal in March, which included only inconsequential changes. Monday's announcement shows no indication that Canada intends to comply with its USMCA commitments, according to the dairy groups. Jim Mulhern, president and CEO of NMPF, says, “Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations.” In April, the groups filed public comments on the matter with Global Affairs Canada. The comments noted the proposed changes “continue to fall woefully short of full compliance.” *********************************************************************************** Farm Groups Welcome USDA Undersecretary for Trade Nominee The Biden admiration last week announced the nomination of Alexis Taylor as USDA Undersecretary for Trade. Taylor currently serves as the Oregon Director of Agriculture, after previously overseeing the USDA’s Farm and Foreign Agricultural Services during the Obama administration. Taylor is an Iowa native, who moved to Oregon after working 12 years in Washington D.C. U.S. Grains Council President and CEO Ryan LeGrand congratulated Taylor on her appointment, saying she is “a highly qualified candidate to be the USDA Undersecretary for Trade.” National Association of Wheat Growers CEO Chandler Goule says, “I have worked with Alexis for over fifteen years and know the industry appreciates her experience and understanding of the agriculture community and trade issues.” U.S. Meat Export Federation President and CEO Dan Halstrom adds, “USMEF had many opportunities to work with Taylor in her previous roles at USDA and we are confident she will be a strong and effective advocate for U.S. exporters and all of U.S. agriculture.” *********************************************************************************** Lawmakers Urge USDA to Address Infant Formula Shortages A group of Senators urges the Department of Agriculture to address "extremely high levels of corporate concentration" in the infant formula marketplace. The request comes as infant formula shortages are occurring nationwide. Senate Democrats Tammy Duckworth, Cory Booker and Amy Klobuchar say, “The infant formula industry has reached an alarming level of corporate concentration with four companies–Abbott Nutrition, Mead Johnson, Gerber, and Perrigo–controlling nearly 90 percent of the infant formula market.” The lawmakers say the concentration creates a serious risk to infant health if there is any disruption to a major manufacturer’s supply. Meanwhile, Agriculture Secretary Tom Vilsack urged states to adopt flexibilities to support families. Vilsack says, “USDA will continue the work we started in February, working not only within our department, but across the federal government, suppliers and partners to end this infant formula crisis as quickly as possible.” The flexibilities are included in the Special Supplemental Nutrition Program for Women, Infants, and Children. *********************************************************************************** R-CALF Launches No Rancher Left Behind Campaign R-CALF USA last week announced the launch of “No Rancher Left Behind,” a rancher/farmer conversation and awareness campaign. The campaign is a collaboration between R-CALF USA and Coy Young, a Missouri cattle rancher who recently testified before Congress about the stresses he faces as a cow-calf producer. “No Rancher Left Behind” is set to feature informational graphics on social media and a resource webpage with hotline numbers and links to other helpful information, but perhaps most notably, weekly support group style, virtual meetings for ranchers to gather and converse in a safe place. Young came up with the idea for the campaign after struggling with his own market-related financial challenges and recently shared his story with the New York Times. Young adds, “If we can help each other when we’re hurting and in need, that’s the greatest accomplishment that could ever come from this campaign and these meetings.” Learn more at r-calfusa.com. *********************************************************************************** National Gas Price Spike Continues The nation's average gas price increased for the fourth straight week, rising 15.3 cents from a week ago to $4.46 per gallon. The national average is up 39.1 cents from a month ago and $1.43 per gallon higher than a year ago. The national average price of diesel increased three cents in the last week and stands at $5.55 per gallon. GasBuddy's Patrick De Haan says, "Prices later this week could be closer to $5 per gallon than $4, as demand continues to edge higher and inventories of both gasoline and diesel continue to decline." The summer driving season kicks off with Memorial Day, and China announced it would begin to reopen Shanghai, its largest city, after COVID lockdowns and reduced oil demands. De Haan adds, “While the increases may start to slow in the days ahead as pump prices catch up to oil, there isn’t much reason to be optimistic that we’ll see a plunge any time soon.”
| Rural Advocate News | Tuesday May 17, 2022 |
Tuesday Watch List Markets A report on U.S. retail sales for April is due out at 7:30 a.m. CDT Tuesday, followed by the Federal Reserve's report on industrial production in April at 8:15 a.m. Traders will keep an eye on the latest weather forecasts and watch for any news of an export sale. Weather A disturbance exiting the Rockies into the Plains will be the cause of some areas of showers and thunderstorms on Tuesday across the North-Central U.S. Some storms could be severe with a greater wind and hail threat in Nebraska, Kansas, Missouri, and southwest Iowa. The showers will delay planting progress where they hit, but other areas will be able to see fieldwork completed.
| Rural Advocate News | Monday May 16, 2022 |
Inflation will Burden U.S. Economy for Several Years Overall consumer prices during April were 8.3 percent higher than last year, and America’s families can expect inflation to continue pressuring their wallets for the next few years. That conclusion is from American Farm Bureau’s economists who analyzed the inflation numbers in their latest Market Intel report. They expect inflation to stay above five or six percent for the foreseeable future. The report says too much money was created by the Federal Reserve Bank, mostly in 2020, and it’s inevitably turning into inflation. “Thankfully, the Fed has begun steps to address this, but it will likely take a few years to approach their long-term target of two percent per year,” the report says. It also says the Fed injected $6.4 trillion into the economy between March 2020 and the end of 2021, a 42 percent increase in the money supply in 22 months, which is too much money to be absorbed by economic growth. *********************************************************************************** Ag Credit Conditions Stay Strong While Outlook Softens Farmland values continue to increase at a rapid pace through the end of 2021. Alongside sustained strength in farm income and credit conditions, the Kansas City Fed says the value of all types of farmland was over 20 percent higher than last year. The recent strength in agricultural real estate markets has been supported by strong demand, historically-low interest rates, and vastly-improved conditions in the farm economy. Lenders say the outlook is mostly-favorable for agriculture in the Tenth District, but rising input costs are a risk to the sector. The possibility of weaker ag income and higher interest rates in the economy remain risks for farmland markets. Even with the uncertainty around input costs, lenders expect favorable conditions in the economy to support farm finances and lead to more gains in farmland values during 2022. Despite risks, the Fed says ag appears to be well-positioned in the year ahead. *********************************************************************************** NAMI: House Report Distorts Meatpacker Efforts to Fight COVID The North American Meat Institute says the House Select Subcommittee on the Coronavirus Crisis’ recent report distorts the truth about the meat and poultry industry’s efforts to protect workers from COVID. The report says meatpackers worked with the Trump administration to make sure they could stay open during the pandemic. Julie Anna Potts is president and CEO of the North American Meat Institute, the national trade association for the meat and poultry packers and processors. “The Meat Institute and its member companies voluntarily provided hundreds of thousands of pages to the Committee,” she says. “The report ignores the rigorous and comprehensive measures companies enacted to protect employees and support their critical infrastructure workers.” She also says the meat industry spent billions of dollars to reverse COVID-19’s trajectory. “The committee uses 20-20 hindsight and cherry-picks data to support a narrative that doesn’t tell the whole story of the early days of a national emergency,” Potts adds. *********************************************************************************** Purdue Report Shows Gaps in Urban-Rural Food Satisfaction A Purdue University report says people living in urban and rural areas share many of the same concerns about food prices and availability, including the impact of recent bird flu outbreaks. However, the monthly Consumer Food Insights Report says differences remain in food insecurity and diet satisfaction. Some of the key results from this month’s survey report showed that 60 percent of consumers are concerned about the impact of bird flu on food prices. Food spending is nine percent higher than in January, but food demand remains price insensitive. Fourteen percent of all households and 23 percent of rural households are facing food insecurity. Seventy-one percent of people in urban areas and 61 percent of rural residents are facing food insecurity. Jayson Lusk, Agricultural Economics Professor at Purdue, says, “Rural Americans struggle more often than urban Americans to buy the food they want. Current economic conditions appear to have further disadvantaged rural Americans.” *********************************************************************************** Zoetis Supports Families of America’s Military Representatives from Zoetis presented the company’s first donation to Folds of Honor to help support their work honoring America’s military heroes. Based in Oklahoma, Folds of Honor provides academic scholarships to the families of men and women who have fallen or been disabled while serving in the U.S. armed forces. Jared Shriver, senior vice president of U.S. Cattle and Pork at Zoetis, presented a donation totaling $122,000 to Folds of Honor on May 11. “Zoetis is grateful for the opportunity to help fund scholarship programs for the families of the heroes that help protect our rights and freedoms as Americans,” Shriver says. Folds of Honor was founded in 2007 by Lt. Colonel Dan Rooney, a fighter pilot who served three combat tours in Iraq. Folds of Honor has awarded nearly 35,000 scholarships in all 50 states. “The support from Zoetis helps us continue to provide opportunities,” says Ben Leslie, VP at Folds of Honor. *********************************************************************************** Export Sales Hit Marketing-Year Lows USDA says sales of corn, beans, and wheat to overseas buyers plunged to marketing-year low points during the week ending on May 5. Agency data says corn sales during the week dropped to 192,700 metric tons, down 75 percent from the previous week and 80 percent from the prior four-week average. It’s also the lowest total since the marketing year began on September 1, 2021. Japan was the top corn buyer at 132,600 metric tons. Soybean sales during the week hit 143,700 metric tons, 80 percent lower than the previous week and 74 percent year-over-year. Indonesia was the top buyer with 66,200 metric tons. Wheat sales dipped to 14,100 metric tons, the lowest since the grain marketing year began on June 1 of last year. That total was 88 percent lower than the previous week and 79 percent from the average. Colombia was the top buyer with 40,000 metric tons.
| Rural Advocate News | Monday May 16, 2022 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts, outside market news and may even still be pondering USDA's estimates from Thursday. USDA's weekly report of export inspections will be out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Special attention will be given to corn and soybean planting progress, both likely showing big gains in the latest week. Weather A system from the weekend will continue to push showers through the eastern U.S. on Monday, including some severe weather potential. The front to the system is hung up back across West Texas where additional showers and thunderstorms will develop later in the day. Those, too, may be severe. The spotty nature to the showers will not help out many of those in drought, however.
| Rural Advocate News | Friday May 13, 2022 |
USDA Accepting Applications for Philippines Trade Mission U.S. exporters are invited to submit applications to the USDA for an agricultural trade mission to the Philippines, July 18-21. The mission to Manila will allow U.S. growers, producers, and exporters explore a thriving market that’s expected to emerge from COVID-19 with one of the strongest growth forecasts in Asia. The Philippines is the eighth-largest export market for American agricultural and food exports, averaging $3.1 billion annually during the last five years. USDA says the country offers tremendous export potential thanks to its young and fast-growing population, strong consumer preference for American foods and beverages, and robust service-based economy. “The Philippines sets itself apart from the rest of the world with a U.S. partnership that spans decades and has a bright trade future,” says Daniel Whitley, administrator of the USDA’s Foreign Agricultural Service. Some of the strongest export opportunities in the Philippine market include beef, pork, poultry, cheese, vegetables, and many more. *********************************************************************************** European Union to Help Ukraine Export Grain The European Commission says it will work with the EU governments to help Ukraine export millions of tons of grain currently stuck in the country. As part of the Russian invasion, Russia’s navy has blocked Ukraine’s Black Sea ports. Ukraine was the fourth-largest grain exporter during the 2020-2021 season, selling 44.7 million tons abroad, mainly to China, Africa, and Europe. The closed seaports are causing problems getting grain out of Ukraine and threatening the world’s food supply, especially in poorer regions like Africa. Reuters says getting Ukraine’s products out quickly by train is challenging too because the country’s rail system has different widths of track from Europe. That means the grain has to get transferred at the border to different trains. To make things even worse, there aren’t a lot of transfer facilities on the border. The Commission will take several steps to prioritize Ukraine’s grain shipments at their terminals. *********************************************************************************** First 2022 Winter Wheat Production Calls for Lower Yield U.S. farmers are expected to produce 1.17 billion bushels of winter wheat this year. It’s the first winter wheat production forecast for 2022 issued by the National Agricultural Statistics Service. The forecast calls for an eight percent drop from 2021. As of May 1, the U.S. yield is expected to average 47.9 bushels per acre, down 2.3 bushels from last year’s average of 50.2 bushels. Hard Red Winter Wheat production is forecast at 590 million bushels, down 21 percent from last year. Soft Red Winter Wheat is predicted to be 354 million bushels, expected to be a two percent drop from 2021. White Winter Wheat, at 230 million bushels, is up 38 percent from last year. Of the White Winter Wheat production, 15.7 million bushels are Hard White, and 214 million bushels are Soft White. NASS surveyed roughly 9,300 producers from across the country in preparation for this production report. *********************************************************************************** May WASDE Report Shows Lower Corn, Higher Soybean Production The May World Ag Supply and Demand Estimates call for lower corn and higher soybean production in 2022-2023. The corn outlook calls for lower domestic use, exports, ending stocks, and higher prices. The corn crop is projected at 14.5 billion bushels, 4.3 percent less than the USDA trend from February. Total corn supplies will decline 2.7 percent to 15.9 billion bushels. The season-average corn price is projected at $6.75 a bushel. The soybean outlook is for higher supplies, crush, exports, and ending stocks this year. The soybean crop will be 4.64 billion bushels, five percent higher than last year. Soybean supplies will be 4.89 billion bushels, up four percent from last year. The season-average soybean price will be $14.40 a bushel, up $1.15 from last year. U.S. all-wheat production is projected at 1.72 billion bushels, 83 million higher than last year. The all-wheat yield will be 46.6 bushels an acre, with the price at a record $10.75 a bushel. *********************************************************************************** Ethanol Production Rises to Highest Point in a Month The Energy Information Administration says ethanol output rose to the highest level in a month during the week ending on May 6. Ethanol inventories increased for the first time in six weeks. Ethanol production rose to an average of 991,000 barrels a day, up from 969,000 barrels during the prior week. It was also the highest level since April 8. In the Midwest, which produces the most of any region in the country, production rose to 941,000 barrels a day, up from 915,000 the week before. It's also the highest level in the Midwest since April 8. The Midwest was the only region that saw an increase. Gulf Coast and West Coast production levels remained the same at 24,000 and 9,000 barrels a day, respectively. Rocky Mountain output dropped to 12,000 barrels a day, the lowest output since December. Ethanol inventories increased to 24.14 million barrels during the week, the highest since April 15. *********************************************************************************** CFTC Will Hold Meeting on Voluntary Carbon Markets The Commodity Futures Trading Commission will hold its inaugural Voluntary Carbon Markets Convening on June 2. Participants will discuss issues related to the supply and demand for high-quality offsets, including the product standardization and data necessary to support the integrity of carbon offsets’ greenhouse gas emissions avoidance and reduction claims. They’ll also discuss issues that relate to the market structure for trading carbon offsets and carbon derivatives as well as what potential challenges and opportunities in these markets may look like. “As companies increasingly turn to derivatives markets to manage risk and keep pace with global efforts to decarbonize, I look forward to CFTC facilitating these discussions,” says CFTC Chair Rostin Benham. He also says the goal is to foster innovation in crafting solutions to the climate crisis while ensuring integrity and customer protection. “We’ll also be gathering information from a variety of market participants in the voluntary carbon markets,” Benham adds.
| Rural Advocate News | Friday May 13, 2022 |
Friday Watch List Markets The University of Michigan's early index of consumer sentiment for May is due out at 9 a.m. CDT, the only significant report on Friday's docket. Traders will still be digesting Thursday's new estimates from USDA and we'll see how the market responds to Thursday's limit-up close in September Minneapolis wheat. The latest weather forecasts continue to get widespread attention as does any news regarding Ukraine or planting progress here in the U.S. Weather A low pressure system in the Northern Plains will continue to move northward through the Canadian Prairies through Saturday, bringing scattered showers and thunderstorms and locally heavy rainfall to keep planting pace slow in these areas. The front to the system continues to move through the central Midwest and southeastern Plains on Friday with more showers and thunderstorms. Areas that have seen really good planting weather all week will have to deal with showers.
| Rural Advocate News | Thursday May 12, 2022 |
Biden Announces Action for Farmers on Issues Stemming from Russia War President Joe Biden visited an Illinois farm Wednesday to announce action for U.S. farmers in the wake of the Russia/Ukraine war. The measures include increasing the number of counties eligible for double cropping insurance. The Biden administration is seeking to expand insurance for double cropping to as many as 681 additional counties, bringing the total number of counties where this practice qualifies for crop insurance to as many as 1,935, so more American farmers have the financial security to start or expand double cropping. Another measure would cut costs for farmers by increasing technical assistance for technology-driven precision agriculture and other nutrient management tools. The third measure would double funding for domestic fertilizer production. President Biden is doubling his initial $250 million investment in domestic fertilizer production to $500 million to lower costs and boost availability for farmers, so they can obtain the inputs they need at prices they can afford to maximize yields. *********************************************************************************** Senators Claim USTR Office Lacks Transparency Senate lawmakers call on the U.S. Trade Representative’s Office to dramatically improve transparency and consultation with Congress on pending trade negotiations. Led by Republican Senator Chuck Grassley of Iowa, members of the Senate Finance Committee cited negotiations to waive intellectual property rules at the World Trade Organization, where details became public before Congress was briefed or shown the agreement, as a recent example. A joint statement from the lawmakers says, “We want to ensure that this failure to consult properly with Congress will not be replicated in other areas.” Congress has primary authority to regulate tariffs and commerce with foreign nations under Article I, Section 8 of the Constitution. It delegates authority to the executive branch, with the requirement that it be consulted about trade policies. Grassley has frequently raised concerns about operations at the USTR. Last August, he called on President Biden to immediately appoint qualified individuals to the position of Chief Agricultural Negotiator at the USTR. *********************************************************************************** AEM Releases April 2022 Equipment Sales Numbers Tractor and combine sales declined in April for the second month in a row, according to the Association of Equipment Manufacturers. U.S. total farm tractor sales fell 22.3 percent in April compared to 2021, while U.S. combine sales for the month declined 5.6 percent. Total farm tractor sales are now down 13.7 percent year-to-date, while combines are down 14.5 percent. In Canada, unit sales fell in all segments again for a 19 percent decline in total farm tractor sales, while combine sales were down as well, falling 14.1 percent. Year-to-date farm tractor unit sales are down a 7.7 percent in Canada, while harvesters are down 28 percent. Curt Blades of AEM says, “Supply chain remains the number one difficulty our member manufacturers are facing,” adding, “At the same time, we’re comparing to record numbers from 2021, and while these numbers may look disappointing, they remain above the 5-year average.” *********************************************************************************** Labor Force Participation Decreased Less in Rural Areas During Pandemic From 2007 to 2019, labor force participation rates decreased 2.6 percentage points for people aged 25 to 64 in the rural United States and 0.7 percentage points for the same age group in urban areas. The labor participation rate is the percentage of the population that is working or actively looking for work. USDA's Economic Research Service released data Wednesday that shows the larger decrease in rural participation reflects a slower recovery in those areas after the Great Recession, which lasted from December 2007 to June 2009. Labor force participation rates for people aged 25 to 64 decreased again from 2019 to 2020 due to the COVID-19 pandemic but decreased less in rural counties than in urban counties. Rates declined the most from 2019 to 2020 for people aged 16 to 24 and fell the most in that age group in urban counties. In 2021, labor force participation rates for each age group remained below pre-pandemic levels in rural and urban counties. *********************************************************************************** FFAR and Kroger Foundation Fund Food Waste Research The Foundation for Food & Agriculture Research, in collaboration with The Kroger Co. Zero Hunger | Zero Waste Foundation, announced the Food Waste Challenge Wednesday. The challenge aims to develop an original, innovative methodology for quantitative measurement for food waste generated in U.S. households. Objective, quantitative measurements would provide an accurate picture of the sources of food waste and benefit efforts to reduce this waste across the food system. U.S. household food waste is likely underestimated. Traditionally, multiple methods have been used to track household food waste, including surveys or specialized applications. However, the methods are inconsistent and use different understandings of food waste. Additional research is critical to reducing food waste and supporting interventions, requiring original approaches to gathering accurate and standardized measurements. Applications are due July 13, 2022. Each grantee may receive up to $1 million. The Food Waste Challenge webpage includes more information about this funding opportunity and instructions on how to apply. *********************************************************************************** USDA, EDA, Launch Resource Guide for Rural Economic Development The Department of Agriculture and the Economic Development Administration Wednesday unveiled a joint resource guide. The guide seeks to help community organizations access USDA and EDA resources to build strategies to boost economic development in rural America. USDA Rural Development Under Secretary Xochitl (So-CHEEL) Torres Small says, “The guide we are unveiling today will better equip people with the tools they need to make their communities more attractive, economically viable and safe places to live and work.” The resource guide outlines programs and services that can be used to advance community and economic development in rural communities through four key focus areas: Planning and technical assistance, Infrastructure and broadband expansion, Entrepreneurship and business assistance, and workforce development and livability. The guide also features information and links to USDA Rural Development and U.S. Economic Development Administration key priorities and resources. The resource guide is available online at https://www.rd.usda.gov.
| Rural Advocate News | Thursday May 12, 2022 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, the U.S. producer price index for April and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Traders remain close to the latest weather forecasts and will be ready for USDA's WASDE and Crop Production reports, both due out at 11 a.m. CDT. You can still join DTN's WASDE webinar at 12:30 p.m. or register at DTN.com and listen later at your convenience. Weather A system that produced severe storms across the Upper Midwest on Wednesday will continue to produce strong thunderstorms Thursday. Early morning thunderstorms across the Dakotas and Minnesota will give way to a broken line of strong to severe storms from the eastern Dakotas to central Kansas this afternoon that will push into the Upper Midwest in the evening and overnight hours. All modes of severe weather will be possible. Additional showers and thunderstorms will develop farther west across Montana and Wyoming as the main low pressure center deepens in the area. Elsewhere, hot and dry conditions will continue to favor spring planting, though some isolated showers will be possible in the Mid-Atlantic and Southeast this afternoon.
| Rural Advocate News | Wednesday May 11, 2022 |
USDA: Strong Interests in Partnerships for Climate-Smart Commodities The Department of Agriculture says the first round of funding through the Partnerships for Climate-Smart Commodities received more than 450 proposals ranging from $5 million to $100 million each. The deadline for the proposals closed on Friday. The applications USDA received came from more than 350 groups across various sectors. Agriculture Secretary Tom Vilsack says the “funding opportunity has created tremendous interest from a diverse cross-section of groups from across the country.” Proposals in the first funding pool include large-scale pilot projects that emphasize the greenhouse gas benefits of climate-smart commodity production and include direct, meaningful benefits to a representative cross-section of production agriculture. Over the next few months, USDA will evaluate the applications and rank them based on the technical criteria provided in the funding opportunity. Awards for the first round of funding are anticipated later this summer. The deadline for the second round of funding is Friday, June 10, 2022. *********************************************************************************** SEC Extends Comment Period on Climate-Reporting Rule The American Farm Bureau Federation and National Pork Producers Council welcomed the Securities and Exchange Commission's comment period extension for a proposed rule. The groups say they need more time to evaluate “The Enhancement and Standardization of Climate Related Disclosures for Investors” rule. The proposal would require public companies to report on Scope 3 emissions, which result from activities from assets not owned or controlled by a publicly-traded company but contribute to its value chain. While farmers and ranchers would not be required to report directly to the SEC, they provide almost every raw product that goes into the food supply chain. Farm Bureau President Zippy Duvall says, “America’s farmers and ranchers need time to fully understand the consequences of this 510-page proposal.” NPPC Chief Executive Officer Bryan Humphreys adds, “The additional time provided by the SEC allows farmers to provide more valuable information to the Commission as it continues to work on developing its disclosure rule.” *********************************************************************************** Grassley, Klobuchar Lead Push for Avian Influenza Outbreak Funding Iowa Republican Senator Chuck Grassley and Minnesota Democrat Amy Klobuchar led an effort this week for more funding to help address the highly pathogenic avian influenza outbreak. The Senators told the Senate Appropriations Committee leaders, “Although the virus poses minimal risk to human health, it has serious implications for U.S. poultry producers, rural communities, and our agricultural economy.” HPAI has been detected in 32 states across the country and has killed over 36 million birds, to date. The lawmakers say, “Given the recent outbreak, the ongoing increase in confirmed HPAI cases, and the likelihood of further spread, we urge the Subcommittee to make funding for the APHIS avian health program a high priority.” The funds, they say, are critical to continue HPAI response measures by USDA. As of Friday, the HPAI outbreak has impacted around 19 sites across Iowa alone, affecting 13 million birds – more than any other state. *********************************************************************************** ESMC, Sorghum Checkoff, Launch Project to Create Ecosystem Services Credits Ecosystem Services Market Consortium and the United Sorghum Checkoff Program Tuesday announced the launch of a carbon pilot project in Western Kansas for sorghum farmers. The program seeks to generate high-quality carbon, greenhouse gas, water quality and biodiversity credits in ESMC’s market program. The project will test ESMC’s streamlined programming to create environmental credits from sorghum farmers’ fields. Many of the farmers are new to private voluntary ecosystem markets linked to conservation practice adoption, so the project will also develop knowledge, capacity and repeatability to continue expanding support for sorghum growers in the region. The research project covers about 5,000 acres in Western Kansas and is working with sorghum farmers interested in implementing conservation practices such as nutrient management and edge of field practices. Sorghum farmers can earn credits from increased soil carbon, reduced or avoided greenhouse gases, improved water quality, and preserved habitat at field edges that increase plant, bird and insect biodiversity and populations. *********************************************************************************** NFU Supports White House Affordability Connectivity Program National Farmers Union welcomed this week’s Affordability Connectivity Program announced by the White House. The program seeks to close the U.S. digital divide by making reliable, high-speed internet affordable to many families in rural and urban communities. The program will provide an estimated 48 million qualifying families with a $30/month benefit to apply towards a high-speed plan and get it at zero cost. NFU President Rob Larew says, “Reliable and affordable high-speed internet is a necessity in today’s world whether you are a farmer or rancher accessing markets and precision agriculture or you and your family are connecting to your schools and jobs.” The Bipartisan Infrastructure Law included $65 billion to make sure we expand access to broadband internet in every region of the country. President Joe Biden, announcing the Program Monday, said broadband, among other things, allows “farmers to use precision agriculture technology to improve their yields.” Participating providers include AT&T, Verizon, Cox, Comcast, and other providers who serve rural communities. *********************************************************************************** USDA: High Fiber Diets Associated with Less Antibiotic Resistance USDA's Agricultural Resource Service says healthy adults who eat a diverse diet with at least 8-10 grams of soluble fiber a day have fewer antibiotic-resistant microbes in their guts. A new study from ARS scientists shows microbes that have resistance to various commonly used antibiotics are a significant source of risk for people worldwide, with the widely held expectation that the problem of antimicrobial resistance is likely to worsen throughout the coming decades. The researchers found that regularly eating a diet with higher levels of fiber and lower protein levels, especially from beef and pork, was significantly correlated with lower levels of antimicrobial resistance genes among their gut microbes. Healthy adults eating a diverse diet with at least 8-10 grams of soluble fiber a day have fewer antibiotic-resistant microbes in their guts. Soluble fiber is found in foods such as grains, beans, lentils, nuts, and some fruits and vegetables.
| Rural Advocate News | Wednesday May 11, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, the U.S. Labor Department will issue its consumer price index for April and no relief from high prices is expected. At 9:30 a.m., the Energy Department releases its weekly inventory report, including an update on ethanol production. As usual, traders remain focused on the latest weather forecasts and any news regarding Ukraine, but have not seen a daily export sale announced since April 28. The U.S. Treasury reports on the federal budget for April at 1 p.m. Weather After a day's break in the North-Central U.S., scattered showers and thunderstorms return to the region on Wednesday, making planting more difficult. A zone of showers and thunderstorms will also develop across the Plains from Nebraska to the southwestern Plains as well, expanding from where they occurred on Tuesday. Severe weather will be a high possibility in both regions, but especially around northwest Iowa and southwest Minnesota this afternoon and early evening. Eastern areas of the country will continue to enjoy good planting weather.
| Rural Advocate News | Tuesday May 10, 2022 |
New Study Demonstrates Lower Consumer Costs at the Pump Clean Fuels Alliance America Monday released a new study, "The Offsetting Impact of Expanded Biomass Based Diesel Production on Diesel Prices.” The study shows that U.S. production of biodiesel and renewable diesel consistently reduces distillate fuel prices by increasing the supply. As the production and availability of cleaner, better fuels grew over the last decade, the price impact increased to a four percent benefit in 2020 and 2021. Kurt Kovarik, vice president of federal affairs for Clean Fuels, adds, "At today's national average price for diesel fuel, the savings is equal to about 22 cents per gallon.” Biodiesel and renewable diesel meet more than six percent of the nation's need for diesel fuel, according to the study. The study notes that even small changes in the supply of diesel fuel will result in relatively larger changes in the diesel fuel price. The study is available on cleanfuels.org. *********************************************************************************** Farmland Partners: ‘Short and Distort’ Class Action Lawsuit Concluded Farmland Partners Inc. Monday announced the deadline to appeal has passed with no appeal filed by the plaintiff from the U.S. District Court's April 6, 2022, ruling dismissing the class-action lawsuit against the company and certain of its executives. The class-action suit has been pending since July 2018, when FPI, its management, and its shareholders were targeted by short-sellers who knowingly printed false information about the company to manipulate its stock price. The author of those attacks has since admitted the falseness of numerous allegations, which were at the core of the class action case. The company expects the plaintiff’s decision to forego an appeal of the district court’s order will result in the dismissal of two shareholder derivative lawsuits associated with the underlying class action lawsuit. FPI Chairman and CEO Paul Pittman says, “Today, we can finally close this chapter and move on to doing what we do best – investing in high-quality farmland across the country and delivering for our shareholders.” *********************************************************************************** Lawmakers Seek $1 billion for Farm Bill Conservation Programs in 2023 Budget A group of Senate Democrats last week requested the 2023 budget include funding for Farm Bill conservation programs. Senators Michael Bennet of Colorado, Debbie Stabenow of Michigan and Chris Coons of Delaware led the effort in a letter to the Senate Appropriations Agriculture Subcommittee. The senators also ask for $1 billion to continue to increase USDA Natural Resource Conservation Service Conservation Operations to help ensure farmers, ranchers, and foresters can be part of the climate solution. The letter states, “We need strong investments in USDA Natural Resource Conservation Service staff and resources to support farmers, ranchers and foresters to help mitigate and adapt to climate change.” In the recent FY22 omnibus spending bill, the Senate passed $904 million for NRCS Conservation Operations. NRCS staff help implement several Farm Bill conservation programs that are critical to helping farmers conserve land and water, protect water quality, and improve soil health. The lawmakers say strong investments in these programs are necessary to help agriculture community combat climate change. *********************************************************************************** NPPC to Weigh in on EPA Formaldehyde Risk Assessment The National Pork Producers Council will soon submit comments on the Environmental Protection Agency’s toxicological review of formaldehyde. NPPC says formaldehyde is used in pork production for, among other things, preventing Salmonella infections in pigs and as a disinfectant. Pork industry-funded research has demonstrated formaldehyde's potential as a mitigant for contamination of feeds with viruses such as African swine fever. EPA in mid-April released a draft risk assessment on formaldehyde for public comment in advance of an external peer review that will be conducted by the National Academy of Sciences, Engineering, and Medicine. NPPC and other agricultural groups met last week with senior EPA leadership on the assessment and requested an extension of the comment period, which runs through June 13. EPA research claims long-term formaldehyde exposure in small amounts increases risks for rare head and neck tumors, and leukemia, among other health issues. *********************************************************************************** AFBF Issues Support for Climate-Smart Commodity Proposals The American Farm Bureau Federation last week announced support for climate-smart commodity proposals. Farm Bureau sent letters of support to five organizations that have submitted proposals for the USDA Climate-Smart Commodities program. USDA is investing $1 billion in pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices and include innovative, cost-effective ways to measure and verify greenhouse gas benefits. An AFBF review committee placed a high priority on projects that reflect objectives laid out by AFBF and state Farm Bureaus during USDA’s request for information process. While other projects may meet those goals, the review committee decided to focus on projects developed or supported by state Farm Bureaus. AFBF President Zippy Duvall says, “The voluntary, market-driven proposals we support will help farmers and ranchers reach their conservation goals while ensuring they keep dinner on the table for families across the country.” *********************************************************************************** Busch Light and John Deere Team Up to Support American Farmers Busch Light and John Deere Monday announced a “For the Farmers” collaboration featuring limited-edition beer cans to support Farm Rescue. Available May 16 through July 3, consumers can purchase 24- or 30-pack cases of 12-ounce Busch Light cans with farming graphics that feature the John Deere logo and equipment. For each case sold during its limited run, Busch Light will donate $1 to Farm Rescue, up to a maximum of $100,000, with John Deere matching Busch Light’s donation. Farm Rescue is a non-profit that provides critical material aid to family farms. Kristyn Stowe of Anheuser-Busch says, “The “For the Farmers” cans mark a legendary union of two iconic brands with a shared passion for supporting farmers and the great Heartlands of America.” Further, on Saturday, May 21, Busch Light and John Deere will host Cornfield Cornhole, a free, one-day fan experience in Big Bend, Wisconsin. At Cornfield Cornhole, a John Deere tractor and ground-posted slingshot will catapult hay bales wrapped in ‘For the Farmers’ graphics across the cornfield to reach an oversized cornhole board.
| Rural Advocate News | Tuesday May 10, 2022 |
Tuesday Watch List Markets There are no significant reports on Tuesday's docket, but traders will keep an eye on the latest weather forecasts, any news of an export sale and any news related to Ukraine. Anecdotes of more planting progress will also be circulating this week. Weather A trough in the West will continue to bring scattered showers to the Pacific Northwest and Canadian Prairies on Tuesday. A front across the North-Central will also produce some showers. But chances for some isolated showers are expected in West Texas for the next few days starting Tuesday. They will come with risks of severe weather, but the moisture will be important to those that are hit. Otherwise, hot and dry conditions will continue to stress wheat in the southwestern Plains while other areas around the country see better planting conditions.
| Rural Advocate News | Monday May 9, 2022 |
Food Prices Slightly Lower in April World food prices took a small step down in April after reaching a record high in March. Reuters says global food security is still a big concern because of challenging conditions in world markets. The Food and Agriculture Organization’s food price index, which tracks the most globally-traded food commodities, averaged 158.5 points in April compared to 159.7 in March. FAO’s chief economist Maximo Cullen says the small decrease in the index is a welcome relief. “However, food prices are still close to their recent highs,” Cullen says. After dropping from the March high point, the April index is still almost 20 percent higher than last year. The cereal price index fell 0.7 percent in April after jumping 17 percent higher in March. The vegetable oil index dropped 5.7 percent in April because of demand rationing. Sugar prices increased three percent, meat rose two percent, and the dairy index was up 0.9 percent. *********************************************************************************** Senate Committee Passes WRDA 2022 Last week Last week, the Senate’s Environment and Public Works Committee unanimously passed its Water Resources Development Act of 2022. WRDA provides improvements for the nation’s ports, inland waterways, locks, dams, flood protection, ecosystem restoration, and other water resources infrastructure. It’s good news for farmers who transport their crops through the infrastructure system and will allow them to remain competitive in the global market. A proposal within the bill would permanently adjust the inland waterways cost-share to 75 percent general revenue and 25 percent Inland Waterways Trust Fund. It would also eliminate the sunset provisions to preserve these changes in perpetuity. The American Soybean Association says it supports the cost-share proposal and continues to advocate for investments to fund lock and dam construction and rehabilitation. They say upgrading the aging lock-and-dam systems along the inland waterways is critical to increasing barge capacity for shipping bigger loads of soybeans to international customers. *********************************************************************************** Beef Export Value Sets Another Record, Pork Exports Improve U.S. beef exports soared to another new value record during March. The U.S. Meat Export Federation says March pork exports were the largest so far this year but well below the record-large totals in March 2021. Beef exports totaled almost 126,300 metric tons in March, one percent higher than last year and the third-largest on record. The value climbed 33 percent higher to a record $1.07 billion. First-quarter exports were six percent higher than last year. USMEF CEO Dan Halstrom says rising inflation and less disposable income may represent a potential demand headwind in the April and May export data. March pork exports hit 222,600 metric tons, their highest total since November 2021. That’s still almost 25 percent below the record volume of last year. The pork export value hit $615.3 million, also the highest since November but still 23 percent lower year-over-year. First-quarter pork exports were 20 percent lower than last year’s total. *********************************************************************************** 2022 World Food Prize Winner is a NASA Climate Scientist Dr. Cynthia Rosenzweig is a climatologist, agronomist, and former farmer. She’s also the 2022 World Food Prize Award winner for her work in modeling the impact of climate change on world food production. Rosenzweig was recognized as the leader of the global scientific collaboration that produced the methodology and data used by decision-makers around the world. She wins $250,000 as the founder of the Agricultural Model Intercomparison and Improvement Project, or the AgMIP, a global network of climate and food system modelers. The AgMIP is dedicated to advancing methods for improving predictions of the future performance of agricultural and food systems in the face of climate change. Her leadership has directly helped decision-makers in more than 90 countries enhance their resilience to climate change. “I’m proud to announce Dr. Rosenzweig as the winner, given her tremendous contributions over the last four decades,” says Barbara Stinson, president of the World Food Prize Foundation. *********************************************************************************** Nutrien Announces Higher Earnings, Increased Potash Production Nutrien says its first-quarter earnings in 2022 totaled $1.4 billion. The first-quarter net earnings per share were $2.70. Nutrien says global agriculture and crop input markets are being impacted by many unprecedented supply disruptions that have contributed to higher commodity prices and heightened concerns about global food security. “The situation proves the need for long-term solutions that support a sustainable increase in global crop production,” says Ken Seitz, interim president and CEO of Nutrien. “We are responding by safely increasing potash production and utilizing our global supply chain to provide customers with the crop inputs and services they need for this critical growing season. He also says the company expects higher earnings and cash flows this year, which provides them an opportunity to accelerate strategic initiatives that Nutrien believes will advance sustainable agriculture practices. It includes the potential to expand their low-cost fertilizer production capacity and enhance their global distribution network. *********************************************************************************** Overseas Corn Sales Lower, Wheat and Soybean Sales Rise U.S. corn export sales were lower during the week ending on April 28 while wheat and soybean sales climbed. China bought the most corn at 466,000 metric tons, but the total overseas sales were reported at 782,500 metric tons, 10 percent lower than the previous week. It’s also 19 percent lower than the prior four-week average. Sales for the 2022-2023 marketing year that starts on September 1 came in at 737,900 metric tons, and exports rose 22 percent to a marketing-year high of 1.9 million metric tons. Wheat sales rose to 118,000 metric tons, a sizeable gain from the prior week and 53 percent above the average for this time of year. Mexico was the top buyer at 88,400 metric tons. Soybean sales hit 734,600 metric tons, 53 percent higher than the previous week and 28 percent above the four-week average. Sales for delivery in the next marketing year dropped 21 percent week-to-week.
| Rural Advocate News | Monday May 9, 2022 |
Monday Watch List Markets Back from Mother's Day weekend, traders won't be any better behaved, but they will be checking the latest changes in the weather forecast, any news regarding Ukraine and will also be alert for any export sales announcements. USDA's weekly export inspections report is due out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Weather A strong system will move through the North-Central U.S. on Monday. It is already bringing scattered showers and thunderstorms to the Northern Plains early Monday morning, which will spread into Minnesota, Iowa, and Wisconsin throughout the day. Any thunderstorms could be severe, especially later today and tonight across Minnesota and Iowa into Wisconsin. Breezy winds are accompanying the system across the north, but also down through the Plains. The wind, combined with some impressive May heat, increases the risks of wildfires in drought areas.
| Rural Advocate News | Friday May 6, 2022 |
USDA Updates Livestock Insurance Options The USDA has updated three key crop insurance options for livestock producers to offer better protection and flexibility. The options are Dairy Revenue Protection, Livestock Gross Margin, and Livestock Risk Protection. The Risk Management Agency revised the insurance options to reach more producers and better meet the needs of America’s swine, dairy, and cattle operations. The updates recently got published for the 2023 crop year, which begins on July 1, 2022. “Great and sound customer service is the most important thing we can provide our nation’s producers, making sure the products we offer give them the most useful tools for covering their risks,” says RMA Administrator Marcia Bunger. “Agriculture is not a static industry, and these updates reflect the importance we place on always knowing the evolving needs of producers and offering the most people the best risk-management tools we can.” For more information on livestock insurance policies, go to rma.usda.gov. *********************************************************************************** NCGA Call-to-Action on Fair Fertilizer Markets The National Corn Growers Association responded to the recent USDA public comment period on its report titled “Access to Fertilizer: Competition and Supply Chain Concerns” by launching a call-to-action. The call got made to aid corn growers in raising a collective voice on this important and timely issue. “We need a unified message if we’re going to effectively reach Washington decision-makers on this important issue,” says NCGA Vice President of Public Policy, Brook Appleton. “That’s why it’s critical that corn growers take this opportunity to submit comments to USDA, including detailed information on how rising input costs are impacting their operation.” The call-to-action encourages corn growers to comment specifically on fertilizer accessibility, price volatility, and market competition. The public comment period will close on May 16. “This is an opportunity to grab a seat at the table during an important discussion,” Appleton adds. For more information on how to submit comments, go to ncga.com. *********************************************************************************** Union Expects CNH Strike to Last Up to Six Months On May 2, approximately 1,200 CNH Industrial workers represented by UAW walked out of manufacturing plants in Iowa and Wisconsin. During a recent interview with Ag Equipment Intelligence, the local president of the UAW says members should expect to be out of work for three-to-six months. “I think what’s going to get CNH back to the table is when they start losing money,” says Local 807 President Nick Guernsey. “They’ll probably start feeling that at four weeks.” The strike began after the sides failed to reach an agreement on a new labor contract. Guernsey says, “The company had replacement workers in town a week before the contract expired, so this was a premeditated strategy.” He says there were several issues at play when negotiations hit an impasse last weekend, including CNHI union jobs paying less than the non-union factory jobs. “At the end of the day, nobody wins in a strike,” he adds. *********************************************************************************** Drought Conditions Persist in the Missouri River Basin April’s dry conditions resulted in well-below average runoff in the upper Missouri River Basin. Monthly runoff in April totaled 1.5 million acre-feet which is 51 percent of the average. The updated 2022 upper Basin runoff forecast is now 17.8 million acre-feet which is 69 percent of the average. If that number gets reached, it will rank as the 23rd-lowest calendar year runoff volume. “Despite recent snow and rainfall events, 84 percent of the upper Basin continues to experience abnormally dry conditions," says John Remus, chief of the Army Corps of Engineers Missouri River Basin Water Management Division. “Current drought conditions, dry soils, and below-normal mountain snowpack resulted in the below-average 2022 calendar year runoff forecast.” The NOAA Climate Prediction Center indicates increased chances for cooler and wetter-than-normal conditions for most of the Basin during May, potentially providing much-needed moisture to the area. However, June, July, and August forecasts indicate warmer and drier-than-normal conditions. *********************************************************************************** Full Schedule of Educational Seminars at Work Pork Expo Pork industry professionals will get the latest in production and management education through many topical seminars during this year’s World Pork Expo, presented by the National Pork Producers Council. The World Pork Expo takes place June 8-10 at the Iowa State Fairgrounds in Des Moines. This year’s lineup of Business Seminars and Pork Academy sessions gives producers a great opportunity to learn about critical topics like sustainability, data, industry collaborations, nutrition, and more. “These seminars provide opportunities for pork professionals to stay on top of the latest challenges, topics, trends, and innovations in our industry,” says NPPC President Terry Wolters. “The World Pork Expo is an excellent place to learn how to improve operations and outcomes with the newest strategies.” Attendees can participate in business seminars, Pork Academy sessions, and several networking opportunities. There is still time to register and join thousands of pork industry professionals at the event. More information is at worldpork.org. *********************************************************************************** USDA Providing Assistance to Cotton and Wool Clothing Manufacturers USDA says it will commit $50 million to assist eligible apparel makers of wool suits, sport coats, pants, or Pima (PEE-mah) cotton dress shirts. The new Cotton and Wool Apparel Program is part of USDA’s Pandemic Assistance for Producers initiative and the department’s efforts to help the food, agriculture, and forestry sectors get back on track. “The transition toward remote work at the start of COVID-19 led to a dramatic decrease in consumer demand for dress clothing, which has continued to affect the entire supply chain of cotton and wool,” says Farm Service Administrator Zach Ducheneaux. “While many manufacturers switched to making personal protective equipment, the industry is still struggling to recover from a persistent and significant decline in sales.” In the announcement, FSA also says the relief will help keep these manufacturers in business, which will ultimately support American workers and the domestic cotton growers and wool producers who rely on this industry.
| Rural Advocate News | Friday May 6, 2022 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the U.S. Labor Department will release its reports of nonfarm payrolls and the unemployment rate, both for April. Traders will watch closely the latest weather forecasts and any news regarding Ukraine. Traders will also watch at 8 a.m. to see if USDA has its first export sale announcement of the week. A report on U.S. consumer credit is due out at 2 p.m. Weather Moderate rain will cover the eastern Midwest Friday, disrupting fieldwork and planting. We'll also see light showers in the northern states hinder activity. Other crop areas will be dry. Highs: 50s/60s E Midwest; 60s/70s Canadian Prairies, N Plains, W Midwest; 70s/80s S Plains, S Midwest, Delta, Deep South.
| Rural Advocate News | Thursday May 5, 2022 |
#SoyHelp to Manage Farm Stress The American Soybean Association, the United Soybean Board, and soybean states want to help farmers who might need help managing the stress of life on the farm. This May is Mental Health Month. The soy community will continue its proactive communications campaign to combat farm stress by offering #SoyHelp. The groups have researched an updated range of options that can be found on the soygrowers.com website year-round. Those options include national mental health resources like crisis centers and suicide hotlines. There are ag-specific resources for farmers and farm families, both national and by soy states. “We want these resources to resonate regardless of age, location, race, gender, or the circumstances that have led to needing a hand,” says Brad Doyle, president of the American Soybean Association. The resources include links to self-assessments, professional services, local health care facilities, hotlines for urgent needs, and chat and text lines for instant access. *********************************************************************************** Ukraine Facing Grain Storage Crunch A sharp fall in exports resulting from the Russian invasion is causing a significant shortage of storage facilities in Ukraine for the 2022-2023 season. Analyst APK-Inform says that Ukraine is getting forced to export grain by train over its western border or from smaller ports along the Danube River. APK-Inform says that Ukraine’s exports may total just 45.5 million tons of the 2021 record-harvest total of 86 million tons. Reuters says grain and oilseed stocks at the end of the current season may reach an all-time high of 21.3 million tons. That volume is 4.2 times higher than in the previous season and won’t allow Ukraine to release a significant share of its storage capacity for any new harvest that comes in. Ukraine is typically a major grain and oilseed grower for the world, but exports have dropped sharply. Ukraine exported 763,000 tons in April compared to 2.8 million tons at the same time last year. *********************************************************************************** Winter Wheat Resiliency Getting Tested by Drought, High Winds The major winter wheat-growing regions in the U.S. face the significant possibility of below-average yields. DTN says that’s because drought intensified through the Plains this spring, and summer forecasts don’t show much relief ahead. A dry fall, winter, and spring combined with winds over 60 mph have pushed the winter wheat to the limit. DTN Meteorologist John Baranick (Ba-RA-nick) says overall conditions are poor from Nebraska through western Kansas and into West Texas. The region’s lower precipitation trend dates back to late in the summer of 2021. Precipitation stayed low through the fall and winter, while spring storm systems stayed to the north. Persistent high winds have only made things harder for the wheat crop. As active spring storms swung north across the western U.S., they sent strong, dry winds into the Plains. Baranick says, “Strong winds combined with the dryness have caused lots of blowing dust and buried some of the wheat.” *********************************************************************************** Milk Producers Look Forward to White House Nutrition Conference The National Milk Producers Federation says it’s looking forward to the first White House Conference on Hunger, Nutrition, and Health in over 50 years. The conference goals are to end hunger, increase healthy eating and physical activity, and decrease the prevalence of diet-related diseases in the country. “Dairy products, and the 13 essential nutrients they provide, are a key ingredient in this effort,” says NMPF President and CEO Jim Mulhern. “Diets that include dairy help to lower risk for cardiovascular diseases, obesity, and type 2 diabetes.” Dairy is also a critical source of calcium, potassium, and vitamin D, three of the four nutrients the public doesn’t get enough of because dairy is under-consumed across all age groups. “We look forward to working with the White House and public and private partners toward advancing these incredibly important goals,” Mulhern adds. The White House and USDA say the conference will take place this fall. *********************************************************************************** NACD Applauds CRP Announcement The National Association of Conservation Districts was pleased to hear that USDA accepted offers of more than two million acres in Conservation Reserve Program enrollment. “We applaud USDA and commend them for their leadership in continuing to administer this critical program,” says NACD President Michael Crowder. “CRP is a voluntary program and a significant component to conservation that, over the years, has played a key role in restoring the environment and ensuring the sustainability of our agricultural lands.” The organization says CRP is a critical tool in USDA’s conservation program efforts. “NACD is pleased that more than two million acres have been accepted through CRP and looks forward to USDA continuing its excellent stewardship of this program,” says NACD CEO Jeremy Peters. “CRP plays a key component to conservation, and we are excited to see enrollment options become available to as many eligible producers as possible, particularly those that manage vulnerable lands.” *********************************************************************************** NCGA BeSure! Campaign Promotes BMPs As the planting season is underway, the National Corn Growers Association launched its fourth-annual BeSure! Initiative. The national campaign is designed to promote best management practices when applying insecticides. Ag stakeholders appreciate how seed treatments and other products increase yields and boost revenue, but they also are committed to protecting bees and other wildlife. Some of the BMPs for growers include following directions on the label for appropriate storage, use, and disposal practices. When planting treated seed, use advanced seed flow lubricants that minimize dust. Some of the applicator practices include complying with all regulations when using registered pesticide products and ensuring proper employee training prior before application. Applicators should properly dispose of any unused product, rinse water, or seed treatment by following the label disposal instructions to minimize any potential environmental impact. For more information on best management practices to protect crops and wildlife while handling insecticides, go to growingmatters.org.
| Rural Advocate News | Thursday May 5, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. job claims, reports in first quarter U.S. productivity and labor costs and an update of the U.S. Drought Monitor. At 9:30 a.m., the Energy Department releases its weekly report of natural gas storage. Traders continue to monitor the latest weather forecasts and watch for any news regarding Ukraine. Weather Moderate to heavy rain will cover the southeastern Plains and southern Midwest Thursday. Fieldwork disruption will occur along with a threat of flooding. Other primary crop areas will be dry. Forecast models suggest a warmer and drier pattern during the next seven days, which would be favorable for row crop planting progress.
| Rural Advocate News | Wednesday May 4, 2022 |
Producer Sentiment Improves Despite Inflation Worries The Purdue University/CME Group Ag Economy Barometer improved in April, rising eight points to a reading of 121. However, that remains 32 percent below its level from the same time last year. Producer perspectives on current conditions and future expectations saw an uptick over the past month. The Index of Current Conditions improved seven points to a reading of 120, and the Index of Future Expectations rose nine points to a reading of 122. Rising commodity prices, especially for corn and soybeans, appear to be the reasons behind producers’ improved financial outlook. Even with improved prices, producers say rising input costs are the top concern for their farming operation. In April, 42 percent of producers surveyed chose higher input costs as their biggest concern, which was more than twice as many who chose government policies or lower output prices. Sixty percent of respondents expect input prices to rise by 30 percent over the next year. *********************************************************************************** USDA Accepts Two Million Acres Into CRP General Signup Ag Secretary Tom Vilsack announced that the USDA is accepting more than two million acres in offers from agricultural producers and landowners through the Conservation Reserve Program’s general signup. It’s the first of the program’s multiple signups occurring this year. With about 3.4 million acres expiring this year, Vilsack encourages producers and landowners to consider the Grassland and Continuous signups, both of which are currently open. “Our conservation programs are voluntary, and at the end of the day, producers are making market-based decisions as the program was designed to allow and encourage,” Vilsack says. Producers submitted re-enrollment offers for just over half of expiring acres, similar to the rate in 2021. Offers for new land into General CRP were considerably lower than last year’s numbers, with fewer than 400,000 acres being offered versus more than 700,000 acres last year. Producers with accepted acres still need to develop a conservation plan before enrolling on October 1. *********************************************************************************** Hands-On Practice Responding to FAD Outbreak The National Pork Board recently organized a foreign animal disease exercise to practice and troubleshoot a simulated response to a mock disease outbreak. Over 40 people from academia, production, the USDA, the veterinarian community, and the Iowa Pork Producers Association teamed up during the all-day event. The staff at the Swine Medicine Education Center at Iowa State University hosted the event. “The value of this exercise is the continuous practice as regulation, technology, and stakeholder awareness evolve,” says Dr. Tyler Bauman, a herd veterinarian for The Maschhoffs, LLC. “The more we prepare, the quicker we can respond to an actual incident.” Participants practiced every procedure in the coordinated response plan based on location and the outbreak’s status to identify, understand, and address their knowledge gaps. “There were real-time insights from the High Path Avian Influenza outbreak that state veterinarians could share,” Bauman adds. “Each stakeholder at the drill shared a wealth of knowledge in their roles.” *********************************************************************************** EPA Delivers Final RFS RVO Rule to the White House The Environmental Protection Agency delivered its final rule setting the 2021 and 2022 Renewable Fuel Standard renewable volume obligations to the White House Office of Management and Budget. The rule, delivered on April 29, may also revise the existing RVO for 2020. The OMB review is the final step before the rulemaking is published. In December 2021, the EPA released a proposed rule that included RVOs for 2021 and 2022. The rule also intended to revise the already finalized 2020 RVO, something the U.S. biofuel industry emphatically doesn’t support. Biodiesel Magazine says with the final rule now under OMB review, it looks like the EPA will be able to finalize the RVO rulemaking by June 3. That would keep EPA in compliance with a consent decree related to a legal challenge by Growth Energy which sought an injunction requiring the EPA to promptly issue the RVOs for 2021 and 2022. *********************************************************************************** CNH Workers Announce a Strike in Wisconsin and Iowa CNH Industrial, the company behind Case IH and New Holland equipment, saw workers in Racine (Ray-SEEN), Wisconsin, and Burlington, Iowa, go on strike as of Monday. In a statement, the company says, “We are disappointed that the parties were unable to reach an agreement and that the United Auto Workers has decided to call a strike. We are working to resolve the issues and will continue to negotiate in good faith, trusting the union to do the same.” UAW workers say they called for a strike after the company failed to present an agreement that met member demands and needs. “Our members at CNHi strike for the ability to earn a decent living, retire with dignity, and to establish fair work rules,” says Chuck Browning, vice president and director of the UAW’s Agricultural Improvement Department. Over 1,000 UAW members have now set up pickets in the Racine and Burlington locations. *********************************************************************************** Brazil’s Commodity Exports to Arab Nations Rising Quickly Reuters says Brazilian exports to the 22 countries in the League of Arab Nations rose in the first quarter amid a spike in agricultural commodities and a drive to stock up on food. Brazil’s total exports hit $3.86 billion during the period, 33 percent higher than the same time last year. Iron ore typically accounts for most of Brazil’s sales to Arab nations. That hit $690.29 million in the first quarter, a drop of 12.5 percent year-on-year. But strong food demand worked in favor of the country’s exporters, who made a windfall. Brazil’s chicken meat sales rose by over 10 percent to $591 million, while sugar sales jumped over 19 percent to almost $589 million in the first three months of this year. Soy product sales were 122 percent higher than the same time last year, coming in at $318 million. Wheat exports jumped more than 438 percent to almost $286 million.
| Rural Advocate News | Wednesday May 4, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, the U.S. Census Bureau will report on the international trade deficit for March, a source of more specific export data USDA will provide later Wednesday morning. The U.S. Energy Department's weekly inventory report is out at 9:30 a.m. Traders continue to monitor weather and any news from Ukraine. At 1 p.m., the Federal Reserve concludes its meeting and is expected to announce a half-percent increase in the federal funds rate target. Weather Light rain will move across the central and Southern Plains Wednesday, offering some benefit for drought-affected winter wheat. Other crop areas will be dry with some scattered fieldwork possible. Rain will then set up in the Midwest Thursday and Friday, causing more planting delays
| Rural Advocate News | Tuesday May 3, 2022 |
Russia Accused of Stealing Tons of Grain from Ukraine Russia stands accused of stealing several hundred thousand tons of grain from the parts of Ukraine it currently controls. Business Insider says Ukraine’s deputy agriculture minister made the accusation over the weekend. Another 1.5 million tons of grain are in territory Russia controls and are available to be stolen too. The Ukraine Foreign Ministry made the claim last week on Twitter, saying, “We demand that Russia stop illicit grain stealing, unblock Ukrainian ports, and allow ships to pass.” The humanitarian crisis caused by the Russian invasion is only growing worse. The United Nations says over 1.7 billion people are at risk of poverty and famine due to disruption in Ukraine’s food production system. Ukraine’s ag minister says they’ve personally heard from many silo owners in the occupied territory about Russian forces stealing grain. The Kremlin denied the accusations that its forces are stealing grain, saying it was unaware of the source of that information. *********************************************************************************** First Farm Bill Hearing Takes Place in Michigan The Senate Ag Committee traveled to Michigan State University late last week to hold its first field hearing on the new farm bill. The Hagstrom Report says one thing Ag Chair Debbie Stabenow and Ranking Member John Boozman (BOZE-man) stressed is the importance of bipartisanship in developing the next farm bill. “We heard from farmers and others impacted by the farm bill about how we can strengthen this important legislation, grow the economy, and meet serious new challenges facing the country,” says Stabenow. Boozman, the ranking Republican, says, “There’s no substitute for getting out of Washington and hearing directly from those impacted by our decisions. I look forward to convening our next hearing in my home state of Arkansas.” Both say the tradition of starting field hearings in the home states of the chair and ranking member sets the tone for putting stakeholders first as they begin discussions on the upcoming farm bill. *********************************************************************************** FAPRI Updates 2022 Ag Market Snapshot Events of the last three months have had large impacts on agricultural markets. The war in Ukraine, drought in South America, and other developments have resulted in sharp commodity price increases. The Food and Agricultural Policy Research Institute at the University of Missouri says that resulted in higher farm receipts and costs and higher food prices. The April snapshot says those factors are all higher than what got reported during the 2022 baseline outlook in January. Projected harvest prices are much higher, with corn prices over $6 a bushel, wheat over $8 a bushel, and soybeans above $14 a bushel. Livestock sector prices will get boosted by lower 2022 production than previously expected and strong demand. Avian Influenza will reduce the number of laying hens and egg production. Higher production expenses than previously projected now show a $55 billion increase in production costs. The projected net farm income is almost the same as in 2021. *********************************************************************************** Smithfield Foods Voted Most Trusted Pork Company Smithfield Foods is the pork brand Americans trust the most. That’s according to a recent consumer survey conducted for Newsweek Magazine. Smithfield was honored for trust, which consumers measure through product pricing, quality, and transparency, and as a winner of the 2022 BrandSpark Most Trusted Award. “Smithfield Foods prides itself on providing consumers with wholesome, safe, and affordable food,” says Tim Zimmer, executive vice president of marketing for Smithfield Foods. “Being recognized as the most trusted pork brand is a testament to the dedication and commitment of our more than 60,000 team members worldwide to provide ‘Good Food. Responsibly®.’” Newsweek works with BrandSpark International, a leading market research and consulting firm, to give out the awards. More than 14,700 American shoppers determined the award winners through their top-of-mind unaided responses for categories in which they’re shopping. The results are ranked based on the greatest volume of mentions as the most trusted brand in each category. *********************************************************************************** Growers Invited to Take Part in the National Corn Yield Contest Corn farmers who’d like to join a few thousand other farmers from across the country in a friendly competition are invited to enter the National Corn Yield Contest. The National Corn Growers Association says it’s a tradition that dates back more than 50 years and is a chance to grow knowledge and skills and have fun while doing it. “The farmers who enter the contest build a brighter farm future for America’s farm families,” says Lowell Neitzel, chair of the NCGA’s Member and Consumer Action Team. “Together, entrants generate a pool of collective knowledge and spark innovation.” He also says it’s a way to contribute to the advances of American farming. Farmers who enter by June 30 save with a special early-entry rate of $75. The contest remains open for entries through August 17. All forms are due by November 30, and the contest winners get announced on December 14. *********************************************************************************** Ag Innovation Challenge Deadline Extended The American Farm Bureau Federation and Farm Credit are looking for entrepreneurs to apply online for the 2023 American Farm Bureau Ag Innovation Challenge. This national business competition, now in its ninth year, showcases U.S. startup companies developing innovative solutions to challenges faced by America’s farmers, ranchers, and rural communities. Farm Bureau is offering $165,000 in startup funds throughout the competition. The deadline is extended until May 13. The ten semifinalist teams get announced on September 13. Each semifinalist team gets $10,000 and a chance to compete to advance to the final round. The final four teams compete to win the Farm Bureau Ag Innovation Challenge Award, worth a total of $50,000, the Ag Innovation Challenge Runner-up Award for a total of $20,000, and all of the ten semifinalists compete for the People’s Choice Award. Examples of past challenge winners as well as eligibility guidelines and the competition timeline are at fb.org/challenge.
| Rural Advocate News | Tuesday May 3, 2022 |
Tuesday Watch List Markets U.S. weather is gaining more interest among traders with corn planting set to pick up speed in May and parts of the southwestern Plains getting much-needed rain. A report on March U.S. factory orders is due out at 9 a.m. CDT Tuesday, the only significant report of the day. Wednesday will be busier with the Federal Reserve set to raise the federal funds rate Wednesday afternoon. Weather Showers and thunderstorms are in store for the Midwest, Delta and southeast Plains Tuesday. The rain will further disrupt spring fieldwork. Other primary crop areas will be dry. Some wheat in the southwestern Plains may be damaged by freezing conditions early Tuesday. Western Plains livestock is stressed from effects of early-week unseasonable cold and snow. Northern crop activity remains stalled by recent wet and cool conditions.
| Rural Advocate News | Monday May 2, 2022 |
EPA Sending Biofuel Blending Mandates to White House This Week The Environmental Protection Agency is expected to send the long-awaited 2020-2022 biofuel blending mandates to the White House early this week. Two sources familiar with the matter told Reuters the White House would then be working through a final review of the numbers. The EPA released a proposed rule in December, but it’s not known whether the mandates sent this week will be identical to December’s proposal. In that rule, the EPA would retroactively set total renewable fuel volumes at 17.13 billion gallons for 2020. That was down from a previously finalized rule for the year of 20.09 billion gallons, set before COVID-19. It also set volumes at 18.52 billion gallons for 2021 and 20.77 billion for 2022. Both the 2020 and 2021 figures are lower than in 2019 when the EPA required refiners to blend 19.92 billion gallons of biofuels, but the 2022 proposal is higher. Both the oil and biofuel industries eagerly await the final numbers. *********************************************************************************** American Farmers are Dropping Greenhouse Gas Emissions According to the Environmental Protection Agency, American agriculture’s greenhouse gas emissions fell over four percent from 2019 to 2020. The recent Inventory of U.S. Greenhouse Gas Emissions and Sinks shows ag represents only 10 percent of total U.S. emissions, much lower than other economic sectors. Farm Bureau economists analyzed the EPA data and found that total agricultural emissions in 2020 fell at least 4.3 percent, or 28.8 million metric tons, compared to 2019. Emissions from agricultural soil management like fertilizer application and tillage practices were reduced by 8.4 percent. AFBF President Zippy Duvall says America’s farmers are committed to improvements in sustainability. “Farmers are also dedicated to doing even better through market-based, voluntary incentives allowing them to capture more greenhouse gasses while meeting the growing demand for food both here and abroad,” he says. Compared to 70 years ago, farmers and ranchers get almost three times more out of production than they put in. *********************************************************************************** USDA Releases Data on Local Food Marketing Practices More than 147,000 American farms produced and sold food locally through direct marketing practices, resulting in $9 billion in revenue during 2020. The Local Food Marketing Practices data released by the National Agricultural Statistics Service covers both fresh and value-added foods, such as meat and cheese. More than 40,000 farms sold food directly to institutions and intermediaries and brought in the most revenue at $4.1 billion. Farms with direct-to-consumer sales like on-farm stores and farmers’ markets earned $2.9 billion in revenue. Direct-to-retail sales earned $1.9 billion for more than 24,000 farms nationwide. California led the states in total direct food sales at $1.4 billion, followed by Pennsylvania, New York, Michigan, and Maine in the top five. Texas led the U.S. in the number of farms selling directly to consumers with almost 8,000. California was the top state in direct-to-consumer sales’ earnings at $284 million. Most direct-to-consumer sales took place at outlets like on-farm stores. *********************************************************************************** American Lamb Board Nominations Now Open The USDA’s Agricultural Marketing Service is seeking nominations for the American Lamb Board. Four of the current members’ terms expire in February 2023. Positions to fill include one producer with 100 or fewer lambs, one with more than 500 lambs, one feeder-at-large, and one first handler. The deadline for nominations is June 9, 2022. “Serving on the ALB is an excellent way to represent the sheep industry,” says ALM Chair Peter Camino. “The next round of board appointees will shape the next several years of building demand for American lamb, especially as we work towards updating our long-range plan.” Any U.S. producer, feeder, or first handler who owns or purchases lambs may get considered for nomination to the 13-member American Lamb Board. Members will serve three-year terms beginning in February of next year and are allowed to serve two consecutive three-year terms. More information and application forms are available at ams.usda.gov. *********************************************************************************** Governors Want to Increase Sales of Higher-Blend Ethanol Governors from eight Midwestern states want the Biden administration to apply rules that would allow them to sell gasoline with higher blends of ethanol year-round in their states. US News Dot Com says while the administration will allow summertime sales of E15 this year, biofuel advocates want a more permanent action to allow year-round E15 sales to stimulate demand. The Clean Air Act allows governors to ask the EPA to put the specifications for the volatility of E15 and E10 on the same footing. The Midwest governors told EPA last week that they’re pursuing this route to enable year-round E15 sales. “These states are guiding the way ahead on E15,” says Renewable Fuels Association President Geoff Cooper. “We’re calling on other states to follow their lead so E15 can benefit drivers across the country year-round.” The states involved in the move include 57 percent of the nation’s 2,512 stations currently selling E15. *********************************************************************************** Farmers Union Donates to Help Ukraine Crisis The National Farmers Union is donating $125,000 to help with the humanitarian and agricultural crisis in Ukraine. The contribution went through the World Food Program USA. That organization has been on the frontlines of the world’s worst hunger crises since 1962. WFP is also on-the-ground providing critical food assistance to those impacted by the war. “The war in Ukraine is devastating hundreds of thousands of families, driving them from their homes and into hunger,” says NFU President Rob Larew. “America’s family farmers and ranchers want to help in the best way they know how: to provide food and humanitarian aid to those around the world who need it.” The group also says reserves and food programs will get stretched thin as the full effects of the Ukraine invasion get felt throughout the global food system. “Our concern for community stretches to farmers in a major agricultural country like Ukraine,” Larew adds.
| Rural Advocate News | Monday May 2, 2022 |
Monday Watch List Markets Back from the weekend, traders will check the latest rain totals and weather forecasts as well as any news regarding Ukraine. Traders will pause at 8 a.m. CDT Monday to see if USDA has an export sale announcement, note the ISM's index of U.S. manufacturing at 9 a.m. and USDA's weekly report of export inspections at 10 a.m. USDA's Crop Progress report at 3 p.m. will be watched for corn and soybean planting progress and the latest crop ratings for winter wheat. Weather A system moving through the Central and Southern Plains on Monday is part of an active pattern for all but the Northern Plains this week. Widespread showers and thunderstorms, occasionally severe, will move with the first system through the Midwest on Tuesday, then another system lines up for a similar path Wednesday through Saturday. Severe storms are expected every day this week. When combined with the scattered thunderstorms that occurred on Sunday, the southwestern Plains drought areas have their best chances for precipitation in weeks.
| Rural Advocate News | Friday April 29, 2022 |
Biden Administration Proposes to Spend $500 Million on Food Production The Biden administration is calling on Congress for $33 billion in additional support for the people of Ukraine, who are still struggling under the Russian attack. Included in that proposal is $500 million in domestic food production assistance. The funds will support the increased production of U.S. food crops that are experiencing a global shortage due to the war in Ukraine, including wheat and soybeans. In a release from the White House, the administration says, “Through higher loan rates and crop insurance incentives, the request provides greater access to credit and lowers the risk for farmers growing these food commodities while lowering the cost for consumers.” Additional funding will also allow the use of the Defense Production Act to expand domestic production of critical minerals and materials disrupted by the war in Ukraine. The administration says these proposals help address economic disruptions and reduce price pressures at home and around the world. *********************************************************************************** Meatpacker CEOs Testify at House Hearing CEOs of the four largest meatpacking companies in the U.S. appeared at a hearing held by the House Agriculture Committee. The Hagstrom Report says the committee called the hearing because of rancher complaints that meat industry consolidation and anti-competitive practices are making it hard to earn their living. They also say the concentration has led to a decline in the number of ranches across rural America. The four CEOs all say that market forces and circumstances in the overall economy are responsible for the ups and downs across the cattle markets. House Ag Committee Chair David Scott asked all four if they’ve ever worked together on supply or price issues, and each one said “no.” While Scott went back and forth with each CEO, he also said that the only way to resolve the challenges in the meat sector is to get a solution that works for both the ranchers and the meatpackers. *********************************************************************************** Proposed SEC Rule Could Hurt Every U.S. Farmer and Rancher The American Farm Bureau and 119 other ag organizations sent a joint letter to the Securities and Exchange Commission regarding a proposed rule that may impact every American farmer and rancher. The groups want more time to comment on the proposed rule called “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” The SEC now wants to require public companies to report data on their entire supply chain. Almost every farmer’s and rancher’s products go through a publicly-traded company. That means farmers and ranchers could get forced to report personal information and business-related data. The new reporting requirements would create a heavy burden even for smaller farms having few or no employees. “Farmers and ranchers are already heavily regulated by multiple agencies at the local, state, and federal level,” says AFBF President Zippy Duvall. “The new requirements would make an already complicated patchwork of regulations even more cumbersome.” *********************************************************************************** CoBank: Rising Meat Prices Will Test Consumer Demand U.S. consumer demand for meat at the retail level remains exceptionally strong despite rising prices caused by increased production costs and supply chain challenges. A new CoBank report says that may change soon. Once the full effect of increased costs of producer price inflation shows up in the retail meat case, demand will get tested. “Retail meat prices will remain high throughout 2022,” says Brian Earnest, lead animal protein economist with CoBank. “The sharply higher costs for feed, energy, and labor haven’t fully impacted wholesale and retail meat prices, but that will soon change.” He also says as consumers notice their dollar isn’t going as far as it once did, they may trade down at the meat case. Chicken could be the primary beneficiary. The combined cutout values of beef, pork, and chicken have climbed 22 percent year-over-year in the first quarter of this year, so consumers will see higher meat prices. *********************************************************************************** Purdue Study Shows Economic Impact of the RFS A Purdue University study found that the Renewable Fuel Standard played a critical role in the economic health of rural America. The Purdue ag economist who led the study says this is the first comprehensive examination of market factors and policies affecting biofuels. The RFS played a critical role in reducing uncertainties in commodity markets, and its most significant impact was helping farmers use resources more efficiently. While producing more corn and soybeans as the years went by, U.S. farmers were able to bring fallow land that was previously unused back into production. U.S. annual farm incomes increased by $8.3 billion between 2004 and 2011, with an additional annual income of $2.3 billion between 2011 and 2016. The Purdue study looked at both short- and long-term price impacts of policies and other market forces on the expansion of the biofuels industry and accurately measured the impact of each market driver. *********************************************************************************** Climate-Smart Commodities Funding Deadline Approaching The deadline for partners to apply for the first round of funding through the new Partnerships for Climate-Smart Commodities is Friday, May 6. USDA is committed to supporting a diverse set of farmers, ranchers, and forest owners through climate solutions that increase resilience, expand market opportunities, and strengthen rural America. This round of funding includes large-scale proposals from $5 million to $100 million that emphasize the greenhouse gas benefits of climate-smart commodity production. The proposals should also include direct, meaningful benefits to a representative cross-section of production agriculture, including small and/or historically underserved producers. “Don’t miss out on this opportunity,” says Robert Bonnie, USDA Undersecretary for Farm Production and Conservation. “We want a broad array of agriculture and forestry producers and landowners to see themselves in this effort.” A climate-smart commodity is defined as a commodity produced using agricultural practices that reduce greenhouse gas emissions or sequester carbon. More information is available at usda.gov.
| Rural Advocate News | Friday April 29, 2022 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the U.S. Labor Department will release its employment cost index for the first quarter and the Commerce Department will publish personal income and spending statistics for March. The University of Michigan's index of consumer sentiment is out at 9 a.m. The Energy Department's monthly update of biodiesel plant capacity is also due out Friday. Weather A storm system emerging into the Plains will produce widespread showers for the North-Central U.S. on Friday. Showers will spread through a good portion of the country over the weekend. Bouts of severe weather will be possible with the system. Strong winds in the Plains will be yet another feature, bringing increased wildfire risks to areas that are very dry. The flood risk returns to the Red River Valley of the North with the increased precipitation amounts as well.
| Rural Advocate News | Thursday April 28, 2022 |
Biden Administration Announces Global Food Aid The Biden Administration Wednesday announced $670 million in food assistance in response to Russia’s invasion of Ukraine. The Department of Agriculture and U.S. Agency for International Development will draw down the full balance of the Bill Emerson Humanitarian Trust. USAID will use the $282 million from the trust to acquire U.S. food commodities for Ethiopia, Kenya, Somalia, Sudan, South Sudan, and Yemen. USDA will provide $388 million in additional funding through the Commodity Credit Corporation to cover transportation, shipping, handling, and other associated costs. Agriculture Secretary Tom Vilsack says, "America's farmers, ranchers and producers are uniquely positioned through their productivity, and through the Bill Emerson Humanitarian Trust to help.” The trust is a special authority renamed for Congressman Bill Emerson in 1998, that enables USAID’s Bureau for Humanitarian Assistance to respond to unanticipated food crises abroad when other resources are not available. This is the first time since 2014 the U.S. government has used the emergency funding authority. *********************************************************************************** Vilsack Authorizes Additional CCC Funds for HPAI Response Agriculture Secretary Tom Vilsack Wednesday approved Commodity Credit Corporation funding to assist USDA’s Animal and Plant Health Inspection Service response to highly pathogenic avian influenza. The virus has been confirmed in 29 states, affecting more than 33 million domestic birds. APHIS is working closely with state animal health officials on joint incident responses in each affected state. To help ensure APHIS can continue to provide critical rapid response activities, Vilsack approved the transfer of nearly $263 million from the CCC to APHIS to directly support the response efforts. The funding allows APHIS to continue its work with state and local partners to quickly identify and address cases of HPAI in the United States. The Secretary is authorized to transfer funding from available resources to address emergency outbreaks of animal and plant pests and diseases. Secretary Vilsack previously approved the use of approximately $130 million in emergency funding in mid-March. *********************************************************************************** Strong Soybean Oil Demand Elevating Price New data from USDA’s Economic Research Service shows demand for soybean oil increased its price in 2021 and so far in 2022. Soybean oil is the most widely used vegetable oil, and soybean oil use has typically accounted for over 50 percent of total domestic disappearance of all vegetable oil used in the United States. Given the versatility of soybean oil and the limited supplies of substitute oils, steady growth in food and industrial demand for soybean oil caused domestic prices to rise. In March 2022, USDA’s Agricultural Marketing Service reported that average monthly soybean oil prices in Decatur, Illinois, a leading indicator market for soybean oil, had reached 76 cents per pound, more than 40 percent higher than a year earlier. Rising monthly prices have contributed to increases in the 2021/22 U.S. season-average soybean oil price, currently projected at $0.70 per pound, an increase of 23 percent from the prior marketing year. *********************************************************************************** TFI Applauds STB Hearing on Freight Rail Service The Fertilizer Institute President and CEO Corey Rosenbusch thanked the Surface Transportation Board for holding this week’s hearing on “Urgent Issues in Freight Rail Service.” Rosenbusch says, “We appreciate the opportunity to provide testimony on how rail service issues are negatively impacting the cost and timely delivery of fertilizer inputs to farmers.” TFI cited issues such as the implementation of precision scheduled railroading, a lack of competition, and a lack of structural and market-based incentives to be customer-oriented, leading to reduced rail service, high shipping rates, and poor cycle times. The STB also heard testimony from Department of Transportation Secretary Pete Buttigieg and Department of Agriculture Deputy Secretary Dr. Jewel Bronaugh (Bro-NAW), both of whom mentioned the importance and challenges facing fertilizer shippers, as well as other agriculture groups such as the American Farm Bureau Federation and the National Grain and Feed Association. Rosenbusch adds, “these issues are felt broadly, are having negative impacts, and must be addressed through modern reforms.” *********************************************************************************** CME Group to Launch Canadian Wheat Futures CME Group Wednesday announced the launch of Canadian Wheat futures on June 13, pending regulatory review. The contract offers market participants a new tool to directly manage exposure to the Canadian wheat market. Tim Andriesen, Managing Director of Agricultural Products at CME Group, says, “Canada is the world's second largest producer of spring wheat and is one of the world's top wheat exporters, making it an increasingly important region for our global clients.” Other officials say the contract will bring great price transparency to the market. Canadian Wheat futures will be cash-settled and will closely track the shipment of grains from Vancouver, where the bulk of Canadian western red spring wheat is exported. The Canadian Wheat contract will be based on the Platts Canadian Western Red Spring Wheat for Number 2 CWRS 13.5 percent protein Vancouver daily price assessment. Canadian Wheat futures will be listed by and subject to the rules of the Chicago Board of Trade. *********************************************************************************** Former USDA Animal Inspector Pleads Guilty for Accepting Bribes A 68-year-old Laredo, Texas, man has admitted to accepting bribes while employed by the Department of Agriculture. The U.S. Justice Department this week announced Roberto Adams pleaded guilty to accepting more than $40,000 in bribery payments while working as a USDA lead animal health technician. Adams inspected cattle entering the United States to determine if they met the necessary health requirements to enter the country. Over the course of at least 14 months, Mexican cattle brokers paid Adams to allow cattle into the country without proper quarantine or legitimate inspection. Adams will be sentenced in August and faces up to 15 years in prison and a possible $250,000 maximum fine. The FBI conducted the investigation with the assistance of the USDA Office of Inspector General. Assistant U.S. Attorney Heather Winter is prosecuting the case. Data shows that U.S. annual cattle imports from Mexico average more than 1.25 million head per year.
| Rural Advocate News | Thursday April 28, 2022 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, first quarter U.S. GDP and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is set for 9:30 a.m. Russia continues to keep traders on edge and the latest weather forecasts also remain important. Weather A weak disturbance will produce some scattered showers across the midsection of the country on Thursday. Some pockets of moderate to heavy rain will be possible but will be isolated in that regard. Another system moving into the Pacific Northwest will set up a stronger system for Friday and the weekend. Temperatures will remain cool across the north but are rising across the Central and Southern Plains.
| Rural Advocate News | Wednesday April 27, 2022 |
NCBA: Opposition to Government Mandate Amplified Through Senate Hearing Senate Agriculture Committee members heard from the beef industry Tuesday regarding the Cattle Price Discovery and Transparency Act. The hearing, proceeded by months of debate over the need for increased transparency in cattle marketing, highlighted the vehement opposition to government mandates by a majority of U.S. cattle producers. Ethan Lane, National Cattlemen’s Beef Association Vice President of Government Affairs, says, “What is being proposed right now concentrates on what works for one region, it simply doesn’t work for the rest of the country.” NCBA opposes a government mandate as it could potentially result in fewer marketing opportunities and less incentive for producers to invest in genetics and innovative production techniques that lead to higher-quality beef. NCBA “stands committed to turning the focus to solutions with broad industry support,” such as a cattle contract library, 14-day delivery, expedited carcass weight reporting, daily formula base price reporting, and incentives for expanding regional processing capacity. *********************************************************************************** Ranch Group Urges FTC, DOJ to Investigate Vertical Integration of Cattle Feedlots As the beef sector focused on a congressional hearing Tuesday, one group urged the Federal Trade Commission and Department of Justice to investigate vertical integration in feedlots. R-CALF this week announced formal comments submitted to the federal government on the issue. The organization says that while beef packer concentration has plateaued since 2009 at the four-firm level of between 83 percent and 86 percent, it is now evident that major concentration and vertical integration efforts are underway in the feedlot sector of the live cattle industry. The group says the structure of the beef packing industry is now being pushed upstream into the live cattle supply chain. In its comments, the group urged the agencies to investigate to determine the degree of buyer power the concentrated beef packers exercise over those feedlots – in particular, the 77 largest feedlots. The agencies asked for public comments to help them improve enforcement of U.S. antitrust laws regarding both horizontal and vertical mergers. *********************************************************************************** USTR Tai Holds Trade Dialogue with United Kingdom U.S. Trade Representative Katherine Tai met with her counterpart in the United Kingdom this week as part of the second U.S.-UK trade dialogue. While not official trade negotiations, the dialogues focus on the future of trade between the two countries. Ambassador Tai and UK Secretary of State Anne-Marie Trevelyan (trev-el-lynn) hosted a series of roundtable discussions with a group of stakeholders from the U.S. and UK business community. The trade officials agreed to build resilience in supply chains, address the global trade impacts of Russia's invasion of Ukraine, and promote environmental protection, among other topics. Drawing on the stakeholder discussions and bilateral talks, the duo directed their teams to work at pace over the next several weeks to develop an ambitious roadmap with economically meaningful outcomes in these areas. Other focus areas include labor and environmental standards, promoting innovation, and economic growth. Tai and Trevelyan previously held a similar trade dialogue in March. *********************************************************************************** Vilsack Highlights Investment in Watershed Infrastructure in North Carolina Visiting North Carolina this week, Agriculture Secretary Tom Vilsack highlighted USDA’s investment of more than $39 million in six watershed infrastructure projects in the state. The six projects include rehabilitating dams, flood prevention, and watershed restoration projects, and are funded by President Biden’s Bipartisan Infrastructure Law. Making the stop Tuesday with Environmental Protection Agency Administer Michael Regan, Vilsack says, “These projects illustrate this administration’s commitment to investing in rural America.” Vilsack and Regan visited Franklin County, North Carolina, where they visited Franklin County Public Utilities as part of the Building A Better America Rural Infrastructure Tour to highlight infrastructure investments. USDA’s Natural Resources Conservation Service is assisting with projects in North Carolina. In total, NRCS received $918 million of funding to allocate through its watershed programs, which the agency began implementing earlier this year. A full list of projects is available on NRCS’ Bipartisan Infrastructure Law webpage. *********************************************************************************** USA Rice Raises Rail Shipping Concerns USA Rice recently submitted comments to the Surface Transportation Board outlining several rail shipping issues impacting the industry. The comments urged STB to take lasting actions to resolve and prevent the issues from reoccurring. The comments highlighted the rice industry's predicament of low rice prices and ever-increasing input costs, record-high inflation, and lower production forecast for 2022. The rice industry has made a push over the last several years for customers to use rail over other methods of transportation, given its efficiency. However, ongoing issues, including rail congestion, labor shortages, marginal equipment, and the lack of box and hopper cars to ship rice is hampering the industry's ability to do so and causing shippers to resort to other, less efficient, and costly methods of transportation. The issues have resulted in crushing losses to not only rice shippers, but also rice end-users that have been forced to shut down production due to rice shortages. *********************************************************************************** USDA Opens Grants Application to Improve SNAP Customer Service USDA’s Food and Nutrition Service Tuesday announced $5 million in competitive grants are available to enhance efficiency and access in the Supplemental Nutrition Assistance Program. The SNAP Process and Technology Improvement multi-year grants seek to improve the experience of SNAP participants by enabling grantees to update inefficient or ineffective processes or use technology to streamline operations. The application process also requires grant applicants to demonstrate how their initiatives will affect SNAP with respect to equity and inclusion. Stacy Dean, USDA’s deputy undersecretary for food, says, “FNS is deeply committed to improving SNAP so that all Americans can get the healthy food they need,” Previous grantees have used funding for SNAP improvements such as making mobile applications easier to use, implementing live call centers, or creating automated text messaging notifications to remind households of key actions required to maintain benefits. The application process is open now, and the three-year grants will be announced this fall.
| Rural Advocate News | Wednesday April 27, 2022 |
Wednesday Watch List Markets A report on March U.S. pending home sales is due out at 9 a.m. CDT, followed by the Energy Department's weekly inventory report, including ethanol production at 9:30 a.m. Traders continue to monitor the latest weather forecasts, events in Ukraine and any export sales announcements. Weather A system moving through the Northern Rockies and western Canadian Prairies will produce some isolated to scattered showers on Wednesday. Another piece of that system will emerge into the Plains late on Wednesday night with some isolated showers and thunderstorms. A few may happen upon the drier southwestern Plains, but amounts will likely be trivial or absent for most areas. Eastern areas will see quieter and colder conditions. Morning frosts may cause some limited damage to advanced wheat.
| Rural Advocate News | Tuesday April 26, 2022 |
African Swine Fever Vaccine Passes Tests Required for Regulatory Approval Scientists with USDA’s Agriculture Research Service Monday announced that a vaccine candidate for African swine fever passed an important safety test required for regulatory approval. The successful safety test moves the vaccine one step closer to commercial availability. The new results show that USDA's vaccine candidate does not revert to its normal virulence, after being injected into swine. This "reversion to virulence" test is required to ensure that the vaccine's weakened form of the ASF virus does not revert to its original state. The safety studies are necessary to gain approval for use in Vietnam and eventually in other countries around the world. However, future commercial use will depend on approval from the department of animal health within each requesting country. Further development will continue once the vaccine candidate receives regulatory approval from Vietnam. Although the virus is causing profound economic losses to the swine industry, there have not been any outbreaks in the United States. *********************************************************************************** CoBank: Ukraine/Russia War Upending Grain and Energy markets The Ukraine-Russia war has reignited speculation that globalization is coming to an end, and markets should prepare to turn inward to deal with disrupted supply lines and geopolitical challenges. The war will undoubtedly have long-lasting implications. However, according to a new Quarterly report from CoBank's Knowledge Exchange, an unwinding of global supply chains and world markets is unlikely to be one of them. Still, Russia's invasion of Ukraine agitated global grain trade and contributed to unprecedented price volatility in wheat, corn and soybeans. Grain markets could remain volatile for two or more years due to disruptions in planting, harvesting, input application and transportation. Prices for major fertilizers increased between eight percent and 13 percent during the first quarter of 2022, with the biggest spikes coming after Russia invaded Ukraine. While most U.S. ag retailers have adequate nutrient supplies this spring, the report says that may not be the case this fall and in spring 2023. *********************************************************************************** Growth Energy Holds EPA to RVO Deadline of June 3 A U.S. District Court Monday approved a consent decree agreement between Growth Energy and the Environmental Protection Agency that requires EPA to finalize its 2020-2022 Renewable Volume Obligations no later than June 3. The consent decree follows Growth Energy’s multiple notices of intent to sue and a complaint in federal district court in response to the agency’s extended delay in issuing the RVOs. Growth Energy CEO Emily Skor says, “We are encouraged by EPA’s commitment to this deadline, as it gives more credence to the agency’s stated intention to get the RFS back on track.” In December, Growth Energy submitted a notice of intent to sue regarding EPA’s failure to timely fulfill the agency’s statutory obligation under the RFS to issue the 2022 RVO and, in turn, the potentially multi-year "set" rulemaking process for renewable fuel volumes for 2023 and beyond. The RVOs for 2022 were due by November 30, 2021, an annual deadline set by Congress. *********************************************************************************** USDA Lets More Packing Plants Return to Faster Line Speeds USDA’s Food Safety and Inspection Service last week announced it approved the Clemens Food Group pork packing plant in Coldwater, Michigan, to run faster line speeds under a one-year trial program. The agency now has let four plants operate with faster harvesting line speeds, which could increase packing capacity and alleviate supply issues in the face of strong pork demand. FSIS established the line speeds program last November, after a provision in USDA’s 2019 New Swine Inspection System was struck down by a U.S. District Court in March 2021. Nine pork packing plants that had adopted the program, six of which were operating with faster line speeds, were allowed to apply for the program, under which they need to collect data on the effects of the faster speeds on workers and share it with USDA. The National Pork Producers Council says the information could be used to formulate a new regulation for allowing plants to run faster line speeds. *********************************************************************************** Anuvia Secures $65.5 Million to Scale U.S. Production of Sustainable Fertilizer Anuvia Plant Nutrients Monday announced it has raised $65.5 million in Series D funding to increase production capacity at its U.S.-based eco-friendly manufacturing facility. The funding will also expand commercialization of its line of field-ready bio-based fertilizers for large-scale agriculture. The funding announcement comes at a time when the Department of Agriculture has pledged $250 million to support "innovative American-made fertilizers," underscoring the need to reduce dependence on traditional fertilizers sourced internationally. Anuvia CEO Amy Yoder says, “Anuvia's production is entirely U.S. based, ensuring supply-chain security for North American growers." Recently, Anuvia completed the expansion of its facility in Plant City, Florida. The facility has the capacity to expand to 1.2 million tons per year, enough to service over 20 million acres. According to an environmental audit, for every million acres of crops that use Anuvia's products, the reduction of greenhouse gases is the equivalent of removing up to 30,000 cars from the roads. *********************************************************************************** Weekly Fuel Prices Increase Fuel prices increased last week for the first time in more than a month. The price of gas climbed 4.4 cents from a week ago to a national average of $4.11 per gallon. The national average is down 13.3 cents from a month ago and $1.24 per gallon higher than a year ago. Meanwhile, the national average price of diesel increased 4.6 cents in the last week and stands at $5.07 per gallon. GasBuddy’s Patrick De Haan warns prices could be headed higher in the short term. De Haan says that “with the French election now behind us, there is risk that the EU could pursue harsher sanctions on Russia’s energy, which could cause oil prices to rise if it happens.” In addition, U.S. oil inventories continue to decline, putting additional pressure on prices. U.S. retail gasoline demand saw a slight dip last week. Nationally, weekly gasoline demand fell 0.7 percent from the prior week.
| Rural Advocate News | Tuesday April 26, 2022 |
Tuesday Watch List Markets A report on March U.S. durable goods orders is set for 7:30 a.m. CDT Tuesday, followed by March U.S. new home sales and an index of U.S. consumer confidence for April at 9 a.m. As usual, traders will keep up on the latest weather forecasts and pause at 8 a.m. CDT, in case USDA has an export sale announcement. Weather A frontal boundary continues to slide eastward with scattered showers on the East Coast for Tuesday. Additional showers will move through the Pacific Northwest and western Canadian Prairies throughout the day as well. The rest of the country will be mostly dry. Northern areas continue to be colder while the southwestern Plains will start to see temperatures rising. Cold morning temperatures in portions of the Plains may lead to some frost damage in limited areas Tuesday morning as well.
| Rural Advocate News | Monday April 25, 2022 |
Farm Lending Activity Accelerates in Early 2022 The Federal Reserve Bank of Kansas City says farm lending activity at commercial banks increased during the first quarter of 2022 due to a significant increase in the size of operating loans. With some input costs surging in recent months, the volume of operating loans increased sharply from a year ago, and non-real estate lending increased on a rolling four-quarter basis for the first time since mid-2019. While the outlook for the U.S. ag economy in 2022 remains strong alongside higher commodity prices, rising input costs are raising concerns about future profitability. The escalation of the conflict in Ukraine and associated market disruptions are pushing commodity prices even higher. The turmoil is also causing rapid increases in the price of major inputs like fuel and fertilizer sourced from Russia and Ukraine. Concerns about the cost and availability of agricultural inputs intensified, and higher feed prices could also put pressure on profit margins for livestock producers. *********************************************************************************** Dairy Industry Seeking Additional Export Supply Chain Help The U.S. Dairy Export Council and the National Milk Producers Federation sent a letter to the White House regarding specific recommendations to help solve supply chain issues. The top recommendation calls for USDA’s Agriculture Marketing Service to restart its Ocean Shipping Container Availability Report. “Shipping containers for U.S. dairy exports continue to be in short supply at coastal ports and even more so at inland locations,” says Jim Mulhern, President and CEO of NMPF. “These essential links in the global supply chain must be available to exporters.” Other recommendations include setting up pop-up terminal yards in inland locations like Minneapolis and Chicago. That would make it easier to secure shipping containers. They also want to see trucking “fast lanes” dedicated to delivering perishable agricultural goods as quickly as possible at port terminals. Krysta Harden, president and CEO of USDEC, says supply chain issues have cost dairy exporters over $1.5 billion last year alone. *********************************************************************************** Veterinarians Heading to Capitol Hill On April 27, 200 veterinarians will head to Capitol Hill to meet with senators and representatives to talk about legislation that will increase access to veterinary services in rural areas. They also want to talk about legislation to help in reducing the spread of diseases that pose a threat to animal and public health. The American Veterinary Medical Association’s annual fly-in will feature attendees from 48 states and 20 veterinary schools. They’ll talk to officials about passing the Veterinary Medicine Loan Repayment Program and the Healthy Dog Importation Act. The AVMA says it’s united in asking Congress for help alleviating a shortage of veterinarians by assisting with the significant obstacle of student debt. The group also says strengthening dog importation standards will decrease the chances of future disease outbreaks from the 1.2 million dogs imported every year into the U.S. The goal is to maintain vibrant rural communities while keeping animals and people safe. *********************************************************************************** USDA Announces $800 Million Investment on Earth Day In honor of Earth Day, Ag Secretary Tom Vilsack announced that the USDA is investing nearly $800 million in climate-smart infrastructure in 20 states and Puerto Rico. These investments are designed to strengthen the health and livelihoods of people across rural America. They include funding for 165 projects for expanding access to safe water and clean energy for people living in disadvantaged communities. “People in rural America are experiencing the increasing impacts of climate change in many ways,” says Vilsack. “This includes more severe droughts, more frequent wildfires, and more destructive and life-threatening storms.” He also says investing in infrastructure in rural communities is investing in the planet and the peace of mind that children will drink clean and safe water in their homes. The agency will take steps to improve clean energy infrastructure, energy-efficiency improvements, improve infrastructure in communities hit by severe weather, and advance equity in rural communities. *********************************************************************************** Corn, Ethanol Groups Celebrate Earth Day Ag groups like the National Corn Growers Association celebrated Earth Day last week by reminding its members to commit to improving the environment. “Leaving the world in better shape than we found it” is a part of policy upheld by U.S. corn farmers. The group encouraged corn farmers to review their best-management practices, consider planting a pollinator habitat, fill their gas tanks with cleaner-burning ethanol blends, and maximize their nutrient applications. Growth Energy says Earth Day is especially important given the administration lifted the restrictions on summertime E15 sales. “We can’t get to net-zero emissions without biofuels,” says Growth Energy CEO Emily Skor. “Biofuels like ethanol reduce greenhouse gas emissions by 46 percent compared to gasoline. They’re an accessible, plant-based fuel source that can immediately help improve air quality alongside other clean energy solutions.” The group says a nationwide E15 standard could reduce carbon emissions by more than 17.6 million tons. *********************************************************************************** Nebraska Legislature Passes E15 Sales Credit One week after the Biden administration decided to allow for the summertime sale of E15, Nebraska’s lawmakers passed a bill that will provide incentives for retailers who sell the biofuel. KNSB in Nebraska says LB596 allows for a credit of five cents on each gallon of E15 retailers sell and eight cents per gallon of E25 or higher blends sold. The goal is to make ethanol more affordable for retailers who are helping keep fuel prices down for consumers. “At the retail level, E15 is a better fuel, and it costs less,” says Randy Gard, Nebraska Ethanol Board Secretary. “We are excited the bill got passed and to see what it can do for customers.” Gard also says Nebraska retailers have nothing standing in their way to making the transition from E10 and joining the conversion to E15. “The incentives are there, consumer demand is there, and it’s a win for everyone,” Gard adds.
| Rural Advocate News | Monday April 25, 2022 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts assess snow cover in the northern Plains, monitor events out of Ukraine and watch for a possible export sales announcement at 8 a.m. CDT. At 10 a.m. CDT, USDA will release its weekly export inspections report, followed by Crop Progress at 3 p.m. Weather A storm over the weekend brought more heavy precipitation to the Plains and Midwest along with falling temperatures. The front to the system is situated from the Southern Plains to the eastern Midwest and will push southeast throughout the day. Scattered showers will follow the front, which may be heavy at times. Cold air settling behind the front is not ideal for planting, especially when combined with wetter soils across a good portion of the Corn Belt. Drought continues to have negative impacts in the southwestern Plains.
| Rural Advocate News | Friday April 22, 2022 |
FBI Warns Ag Cooperatives About Possible Cyberattacks The Federal Bureau of Investigation’s cyber division is warning agricultural cooperatives across the country to be wary of possible cyberattacks. The division wants cooperatives to take all possible precautions to keep their operations safe. The FBI says ransomware attacks typically happen on ag cooperatives during the critical planting and harvest seasons. The attackers hope to disrupt operations, cause financial loss, and damage the food supply chain. 2021 saw several attacks on ag cooperatives during the harvest. So far, DTN says two ag cooperatives have been hit by cyberattacks this year, one in February, and the other in March. One company is a feed mill, and the other is a multi-state grain company providing seed, fertilizer, and logistical services. The FBI didn’t share the name of either company or any additional information. Cyberattacks have recently hit 14 of 16 critical infrastructure sectors in the U.S., including food and agriculture, the defense industry, and others. *********************************************************************************** IGC Prediction Calls for Lower Global Corn and Wheat Production The International Grains Council is forecasting global corn production will drop by 13 million tons in the 2022-2023 season. Reuters says the council’s prediction is 1.197 billion tons because of smaller crops in Ukraine and the United States. The first full assessment forecasts Ukraine’s corn crop to drop from 41.9 million tons last season to 18.6 billion. The IGC says the Black Sea region’s conflict makes its current forecast “especially tentative.” The United States, the world’s leading corn producer, will harvest 376.6 million tons, down from last year’s 383.9 million. The council also forecasts a decline of one million tons in global wheat production. The 2022-2023 total will be 780 million tons, due in large part to a smaller crop in Ukraine, which will be 19.4 million tons compared to 33 million last year. The drop will be mostly offset by larger crops in other countries, including Russia and Canada. *********************************************************************************** Environmental Group Wants Changes to Crop Insurance Program The Natural Resources Defense Council released a report that calls for changing the Federal Crop Insurance Program. They’re particularly interested in finding ways to incentivize practices that reduce risk and lower the cost of taxpayer-subsidized payouts. As a first step, the report says the crop insurance program should include good stewardship or performance-based discounts that reward farmers who use good soil health practices with a higher premium subsidy or an adjusted insurance premium rate. Rate adjustments could increase the adoption of regenerative practices that improve soil health and mitigate damage to crops, which would lower the cost of crop insurance over time. They recommend that Congress authorize long-term funding for a crop insurance savings program for soil health practices that are modeled on the Pandemic Cover Crop Program. They also want the Risk Management Agency to adopt insurance premium formulas that account for risk mitigation of soil health management practices. *********************************************************************************** USDA Investing $420 Million in Infrastructure Projects The USDA announced it will invest $420 million in 132 infrastructure projects in 31 states. The funds will get used for projects like rehabilitating dams, flood prevention, and watershed restoration projects. The investments are funded through the Bipartisan Infrastructure Law and build on an earlier $166 billion investment earlier this year. “The infrastructure law is a once-in-a-generation opportunity to rebuild our infrastructure, create good-paying jobs, and build new economic opportunity,” says Ag Secretary Tom Vilsack. “Our watershed programs help communities rebuild after natural disasters and prepare for future events.” He also says that includes typically underserved communities. The administration intends to grow the economy from the bottom up and middle out, and it will occur in partnership with rural communities. The funding comes from the Watershed and Flood Prevention Operations Program, which provides technical financial assistance for new watershed infrastructure, and the Watershed Rehabilitation Program, which upgrades existing NRCS dams. *********************************************************************************** What to Know About U.S. Dairy on Earth Day Earth Day is Friday, April 22, and the U.S. dairy industry always has reasons to celebrate the event. The National Milk Producers Federation says it’s an opportunity to refocus on its environmental and climate leadership within agriculture in the U.S. and around the world. Due to innovative farming and feed practices, a gallon of milk in 2017 required 30 percent less water, 21 percent less land, and a 19 percent smaller carbon footprint than in 2007. The UN Food and Agriculture Organization says North America was the only region in the world to reduce its greenhouse gas emissions since 2005 even as it increased milk production. That means the greenhouse gas intensity for dairy products is the lowest in the world. Dairy farms help guard against food waste by taking byproducts from other industries, such as almond hulls and brewer’s grains, and using them as feed. U.S. dairy intends to be GHG-neutral by 2050. *********************************************************************************** Ethanol Output Nears Seven-Month Low The Energy Information Administration says ethanol output plunged to its lowest level in almost seven months during the week ending on April 15. Ethanol inventories also dropped to multi-month lows. Ethanol production fell to an average of 947,000 barrels a day during the week. The EIA report says that’s down significantly from the 995,000 barrels a day produced during the previous week. It’s also the lowest production level since the seven days ending on September 24. In the Midwest, the biggest-producing region of the country, output hit 889,000 barrels a day, down from 935,000 barrels a week earlier and the lowest level since late September. Gulf Coast and West Coast production levels dropped by 1,000 barrels a day, while output on the East Coast and in the Rocky Mountain region stayed steady with the previous week. Ethanol inventories fell to 24.34 million barrels, the lowest level since the week ending on January 14.
| Rural Advocate News | Friday April 22, 2022 |
Friday Watch List Markets Friday is a quiet day as far as reports are concerned, but USDA's Cattle On-Feed report for April 1 will be released at 2 p.m. CDT. Traders will watch for a possible export sale announcement at 8 a.m. CDT, check the latest weather forecasts and keep an eye out for any news regarding Ukraine. Weather A storm system in the Rockies will eventually move out into the Plains late on Friday. Ahead of its arrival, showers moving across the Upper Midwest will spread northeast while additional strong to severe storms will be possible this afternoon and evening across the western Plains. That includes the driest areas of wheat country, but showers should be spotty until they get into the eastern Plains overnight. Winds are also increasing and will be quite strong in the Plains, reducing soil moisture further. Temperatures are also on the increase in these areas, which will only increase soil moisture losses.
| Rural Advocate News | Thursday April 21, 2022 |
Biden Administration Launches Rural Partners Network The Department of Agriculture Wednesday announced the launch of the Biden administration's Rural Partners Network. Led by USDA, the network will help rural communities access government resources and funding to create jobs, build infrastructure and support long-term economic stability. Agriculture Secretary Tom Vilsack says, "The Rural Partners Network will help communities get funding for investments that create long-lasting benefits for their communities, especially those that have been overlooked in the past." The Rural Partners Network is a first-of-its-kind collaboration between federal agencies and local leaders and residents. The network is focused on improving social and economic well-being bolstered by existing local partnerships and assets, according to USDA. The network will launch in selected communities in Georgia, Kentucky, Mississippi, New Mexico, as well as certain Tribes within Arizona. Community networks within these states will receive individualized support with the expertise to navigate federal programs, build relationships and identify additional resources to promote community-driven solutions. *********************************************************************************** Lawmakers Urging Supreme Court to Adopt Limited WOTUS Rule A group of lawmakers jointly filed an amicus brief supporting the petitioners in the pending U.S. Supreme Court case Sackett v. Environmental Protection Agency. The decision in the case will clarify what waterways are considered "waters of the United States," or WOTUS, which will determine the scope of the federal government’s authority in regulating private citizens and businesses under the Clean Water Act. Specifically, the brief argues that the Supreme Court should adopt a longstanding, limited-scope definition of WOTUS proposed by Justice Antonin Scalia in a 2006 case. Senate Republican Chuck Grassley of Iowa helped lead the effort. Grassley and the lawmakers say, “we support policies that protect the environment while also ensuring that States retain their traditional role as the primary regulators of land and water resources.” Grassley adds, “This case presents an opportunity for the Court to finally put the genie back in the bottle.” More than 100 U.S. Representatives also signed the brief. *********************************************************************************** AFBF: NEPA Changes Signal Return to Outdated, Cumbersome Regulations American Farm Bureau Federation President Zippy Duvall commented Wednesday on the final phase 1 revisions to the National Environmental Policy Act, known as NEPA. Duvall says, “AFBF is disappointed that the Biden administration has decided to reverse commonsense reforms to the National Environmental Policy Act.” AFBF says farmers and ranchers share the goal of caring for the natural resources they’ve been entrusted with and were pleased that the updated 2020 regulations allowed them to protect the environment while meeting the demands of a growing nation. However, continued challenges from the pandemic, supply chain issues and the drought in the West are impacting farmers and the American public with increased food and fuel prices. Duvall says, “The situation will now be made worse by the return to a slow and cumbersome NEPA review process that, in many cases, takes years to complete.” The National Cattlemen’s Beef Association and Public Lands Council expressed similar disappointment over the action earlier this week. *********************************************************************************** FFAR & NPB Focus on Continuous Air Quality Improvement Efforts The Foundation for Food and Agriculture Research, partnering with the National Pork Board, announced the Improving Swine Production Air Quality Program Wednesday. The program dedicates $1 million in grant funding to develop objective measures for key air quality components and concentrations in and within 500 meters of swine production facilities. Using objective methods and metrics assessing air quality is critical for understanding the source of swine production particulates and developing continuous improvement efforts. However, existing air quality measurements are subject to bias, preventing the development of effective strategies to improve air quality. Swine production air quality studies reveal that researchers unintentionally introduce bias in a variety of ways, clouding efforts to understand the challenges and opportunities. This new research program aims to develop a scientifically valid assessment of particulate levels inside and immediately outside of swine facilities. NPB’s Heather Fowler says, “Projects such as this will allow us to continue to measure where we are today and look for areas of continuous improvement in the future.” *********************************************************************************** USGC Releases 2021/2022 Corn Export Cargo Quality Report The U.S. Grains Council Wednesday released its 2021/2022 Corn Export Cargo Quality Report. The report shows the average aggregate quality of U.S. corn samples tested was better than or equal to U.S. No. 2 on all grade factors. The report is based on 430 export cargo samples collected from corn shipments undergoing federal inspection and grading processes at export terminals. It also provides information on grading, handling and how U.S. corn is moved and controlled through export channels. Average test weight found by the analysis was higher than in 2020/2021 and the five-year average, with nearly 99.8 percent of samples at or above the minimum requirements for U.S. No. 1 grade corn, indicating overall good quality. Chemical composition indicated protein concentration higher than 2020/2021 and the five-year average with lower starch and higher oil concentrations than the previous year. All but two export samples tested below the U.S. Food and Drug Administration action level for aflatoxins. *********************************************************************************** Illinois Governor Signs Biodiesel Use Bill into Law Illinois Governor J.B. Pritzker this week signed into law a bill that incentivizes increasing blends of biodiesel. The bill extends the current B10 sales tax exemption until 2023 and then increases the biodiesel blend level subject to the tax exemption to B13 in 2024, B15 in 2025 and B19 in 2026 in the state. Clean Fuels CEO Donnell Rehagen applauded the effort, saying the legislation "will expand that demand and solidify Illinois as a leading source and user of better, cleaner biodiesel." Illinois is currently fourth among all states in biodiesel production and third in consumption, with 160 million gallons consumed annually. The legislation was spearheaded and guided through the legislative process by the Illinois Soybean Association with support from Clean Fuels Alliance America and several of its member companies, including REG and ADM. The organizations cite a recent study that found in Chicago, switching to B100 would decrease diesel particular matter-related cancer risks by up to nearly 1,600 cases.
| Rural Advocate News | Thursday April 21, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. At 9:30 a.m., the Department of Energy will release its weekly report of natural gas storage. The latest weather forecasts and any news from the war in Ukraine will continue to be closely watched. Weather A system continues to push showers through the Eastern Corn Belt and Northeast on Thursday. Its cold front remains draped across the middle of the country and more showers and thunderstorms are expected to develop later today, especially over Kansas and Missouri before heading north overnight. Some of those storms could be severe with a large hail threat. A system moving through the West will produce widespread showers before moving into the Plains on Friday.
| Rural Advocate News | Wednesday April 20, 2022 |
NCBA: Biden NEPA Framework Compromises Environmental, Economic Goals The National Cattlemen’s Beef Association and the Public Lands Council Tuesday expressed concern over the Biden administration’s National Environmental Policy Act, or NEPA rule. NCBA and PLC say the rule undermines progress made over the last several years when efficient regulatory processes are critical to environmental and economic sustainability. PLC Executive Director Kaitlynn Glover says, “When it comes to federal regulations, ranchers are often caught in the middle of political whiplash, and this process is no exception.” In addition to their role in water, transportation, and conservation projects nationwide, NEPA regulations play a role in all activities on federal lands. NCBA and PLC say that NEPA processes have become inefficient over the past several decades and the source of an immense amount of regulatory red tape and uncertainty as producers renew grazing permits, improve rangeland, and participate in USDA conservation programs. NCBA and PLC, along with the American Sheep Industry Association, previously advocated for a NEPA process that is targeted, concise, and timely. *********************************************************************************** SHIP IT Act Addresses Supply Chain Backlog A pair of House lawmakers this week introduced the SHIP IT Act, seeking to address the supply chain backlog in the freight network at U.S. ports. Introduced by Republican Representatives Michelle Fischbach of Minnesota and Byron Donalds of Florida, the legislation builds on the STOP the GRINCH Act introduced last fall. The STOP the GRINCH Act, a Christmas-themed bill, was introduced in November 2021 to ease supply-chain and inflation pressures by streamlining or suspending certain federal regulations on ports, ships, and trucks. Notable items included in the SHIP IT Act would temporarily suspend the hours-of-service requirements for truckers transporting goods directly to ports, allow 18-year-olds to drive commercial trucks to U.S. ports, and identify federal lands that can be used for temporary storage of freight. Fischbach says, “Congress should seize any opportunity to ease supply-chain tensions,” adding, “The SHIP IT Act would do this by targeting specific needs in ports, shipping, and trucking.” *********************************************************************************** Farmland Prices up 20% in 2022 The stronger land prices of late 2021 continued in the first months of 2022. Farmers National Company reports sale prices took another jump higher because of the war in Ukraine and ongoing inflation fears. Farmers saw higher commodity prices, and investors wanted a low-risk inflation hedging investment, which propelled the competition for good cropland. Farmland values are roughly 20 percent higher than a year ago. Recent Farmers National Company auction sales demonstrate the strength in the land market so far in 2022. In February, Farmers National Company sold six tracts of Western Indiana land comprising 550 acres for $16,600 per acre. In early March, four tracts of Eastern Illinois land totaling 320 acres sold between $19,100 to $19,700 per acre. At the end of March, a company auction saw three tracts of Central Illinois land sell for $20,500 to $21,500 per acre. In the fall of 2021, prime Illinois farmland was selling in the range of $16,000 plus per acre. *********************************************************************************** Ag Aviation Group Cautions Drone Operators on Ag Operations The National Agricultural Aviation Association is asking drone operators to be mindful of low altitude manned agricultural aircraft operations. With the growing season getting underway, those operations will increase across the nation. Agricultural aviators treat 127 million acres of cropland in the United States each year and perform a variety of services that help farmers increase productivity and protect their crops. NAAA CEO Andrew Moore says agricultural aviators' "work cannot be delayed because of an unmanned aircraft not yielding to them, as is required by law." Agricultural aviators fly as low as ten feet off the ground, meaning they share airspace with drones that are restricted to flying no more than 400 feet above ground level. The organization urges drone operators to do everything they can to avoid ag aircraft doing low-altitude work. Small drones can be virtually invisible-and potentially lethal-to agricultural aviators, air ambulance helicopters, law enforcement and other low-flying manned aircraft operating in the same airspace. *********************************************************************************** NPB Seeks Applicants for Inaugural Pork Innovation Challenge The National Pork Board is launching the first-ever Pork Industry Innovation Challenge to encourage individuals and companies to help solve some of the biggest challenges facing the U.S. pork industry. NPB is accepting submissions for the inaugural Challenge through July 31. The focus of the challenge is pig mortality disposal. Producers and innovators are challenged to think of new methods of carcass disposal beyond the existing methods of burial, incineration, composting and landfills. These methods could be used on farms if there were a foreign animal disease outbreak, such as African swine fever. The challenge is open to all U.S. companies, students and residents, including producers. NPB encourages folks to submit an overview of how their idea works in about 500 words or less by July 31 for a chance to win up to $46,000. Multiple awards will be granted if more than one project is successful. Find more details and learn how to submit your application online at porkcheckoff.org. *********************************************************************************** USDA Farmers Market Reopens for 25th Market Season The USDA Farmers Market returns next month for its 25th market season. The annual Friday market will reopen on Friday, May 6, 2022, and run through October. Deputy Agriculture Secretary Jewel Bronaugh (Bro-NAW), says the reopening “is an opportunity to celebrate the important role that farmers markets continue to play in meeting the growing demand for local fresh and healthy food.” Located outside the USDA Headquarters in Washington, DC, the market serves as USDA’s own “living laboratory” for farmers market operations across the country. The market supports the local economy, increases marketing opportunities for farmers and small businesses, provides access to an assortment of local and regional sourced products, and increases access to healthy, affordable fresh food. The USDA Farmers Market promotes the incorporation of healthy fresh produce in consumers food choices through its unique educational style program, VegU. The commodity-centered education program partners with USDA to market and promote the consumption of commodities through short educational sessions and in-market recipe demonstrations.
| Rural Advocate News | Wednesday April 20, 2022 |
Wednesday Watch List Markets A report on U.S. existing home sales in March is set for 9 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report, including ethanol production at 9:30 a.m. Traders will continue to monitor the latest weather forecasts and any news regarding the war in Ukraine. Weather A system moving across the northern tier of the country will bring lines and clusters of showers through the Corn Belt and Delta on Wednesday. The country continues to be on a warming trend through the rest of the week, but the warmth is temporary. Heat and dryness in the Southern Plains continues to be unfavorable for all crops.
| Rural Advocate News | Tuesday April 19, 2022 |
USDA Announces Changes to WASDE Reports Starting in May The Department of Agriculture Monday announced changes to the World Agricultural Supply and Demand Estimates report starting next month. The changes impact how USDA presents data for sugar and dairy in the monthly report. The sugar WASDE table will have a separate line listing under "Imports" for High-tier tariff imports. The new line will appear directly below the line for imports from Mexico. Footnote 5, which once referenced imports from Mexico, and high-tier tariff sugar and syrups not otherwise specified, will be eliminated. The U.S. Dairy Supply and Use table will remove CCC Donations as a separate category and include all donations as part of domestic use. As such, stocks, imports, exports, and use will reflect total rather than commercial use, and the headings will be adjusted accordingly. The monthly WASDE report provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse grains, oilseeds, and cotton, and U.S. supply of sugar, meat, poultry eggs and milk. *********************************************************************************** U.S. Canola Growers Welcome EPA Proposal for Biofuels Canola growers welcome the Environmental Protection Agency's proposed determination that canola oil-derived renewable diesel and other newer biofuels qualify as advanced biofuels. The EPA last week, as part of the announcement of summertime E15 sales this year, proposed using canola oil-derived fuels under the Renewable Fuel Standard. The U.S. Canola Association says based on its greenhouse gas lifecycle evaluation described in the proposed rulemaking, the EPA finds that renewable diesel, jet fuel, liquified petroleum gas and heating oil produced from canola oil reduce GHG emissions by at least 50 percent compared to petroleum. U.S. Canola Association President Andrew Moore says, "The EPA's rulemaking would level the playing field between canola and other oilseed crops in the biofuel market." The organization petitioned the EPA in 2020 to approve canola oil as a feedstock for renewable diesel. Moore adds, "New canola channels would also help farmers diversify and expand their markets." *********************************************************************************** Feinstein, Padilla, Booker, Stabenow to Secretary Vilsack: Support California Prop 12 Senate Democrats, including the Senate Ag Committee Chair, urge Agriculture Secretary Tom Vilsack to support California's Proposition 12 before the Supreme Court. Senators Dianne Feinstein and Alex Padilla of California, along with New Jersey's Cory Booker and Senate Ag Chair Debbie Stabenow from Michigan, made the request in a letter to Vilsack. In 2018, California voters passed Proposition 12, which set humane standards for farm animal products sold in California. Last month, the Supreme Court agreed to hear National Pork Producers Council v. Ross, a lawsuit challenging Proposition 12. The lawmakers write, "States should not be stripped of their authority to mitigate the harm that inhumane farm animal confinement poses to animals, people, and the environment.” NPPC and the American Farm Bureau Federation call the law unconstitutional, adding Proposition 12 “sets arbitrary animal housing standards that lack any scientific, technical or agricultural basis and that will only inflict economic harm on U.S. hog farmers and consumers.” *********************************************************************************** Groups to USTR, USDA: Panama Must Fully Implement Trade Pact Agriculture groups late last week urged the Biden administration to oppose changes to the tariff elimination terms of the U.S.-Panama Trade Promotion Agreement. The National Pork Producers Council and other groups made the request to the Department of Agriculture and the U.S. Trade Representative’s office. The agreement, which went into effect in October 2012, is still in the process of being fully implemented, with gradual annual tariff reductions and increases in tariff rate quotas, or TRQs. Panama’s TRQs for pork, chicken, dairy, corn and several other commodities have been in place for ten years, and several have another ten years to go before free trade with Panama is achieved. Under the agreement, the country can also impose temporary safeguards on certain import-sensitive agricultural products as it transitions to a more open market. In March, the Panamanian government submitted a formal request to revise the agricultural tariff elimination terms of the TPA. The agriculture groups urge the administration to oppose any changes to agricultural tariffs, TRQs or safeguards. *********************************************************************************** Feeding America Seeks Additional Support from Congress The Department of Labor last week reported year-over-year inflation of 8.5 percent, levels not seen since 1981. At the same time, the latest Feeding America food bank pulse survey data shows that more food banks report seeing demand for food assistance increase or stay the same for February compared to the previous month. Food banks are purchasing nearly as much food as they did in 2021 but are now paying 40 percent more for those purchases. Feeding America projects that the food bank network will experience a 20 percent decrease in manufacturing donations and a 45 percent decrease in federal commodities in fiscal year 2022. Feeding America says Congress should ensure that food banks have the critical resources and program flexibilities necessary to address the need for food assistance by providing $900 million for The Emergency Food Assistance Program and extending child nutrition waivers. Feeding America also calls on USDA to use the Commodity Credit Corporation to provide funds for food purchases. *********************************************************************************** Fuel Prices Decline Again, Slide Could Stall The nation's average gas price declined for the fourth straight week, falling 3.8 cents from a week ago to $4.06 per gallon. The national average is down 21.1 cents from a month ago and $1.21 per gallon higher than a year ago. The national average price of diesel fell 1.2 cents in the last week and stands at $5.02 per gallon. GasBuddy's Patrick De Haan calls the decline "a feat we most likely would not have expected ahead of summer and given the continued turns in Russia's war on Ukraine." However, he warns the downturn could slow or reverse in the days ahead if the rally in oil prices continues. The price of a barrel of West Texas Intermediate crude oil surged from its week-ago level as the EU signaled it may move forward with sanctions on Russian energy, and China worked to reopen some cities shut down due to COVID. De Haan adds, “The path forward at the pump remains murky, with many possible outcomes.”
| Rural Advocate News | Tuesday April 19, 2022 |
Tuesday Watch List Markets A report on March housing starts is due out at 7:30 a.m. CDT and is the only official report on Tuesday's docket. Traders will continue to monitor the latest weather forecasts and any news regarding Ukraine. Weather A system is still leaving the Northeast and some wrap-around showers will continue in the eastern Midwest on Tuesday. But the larger story is the system crossing the West. Ahead of it, winds will increase in the Plains and may cause more wildfire threats. But there may be some showers developing from west-central Texas into the southern Midwest later in the day and tonight. Showers are likely to be spotty, but would be the first showers in a while for some areas of Texas and Oklahoma.
| Rural Advocate News | Monday April 18, 2022 |
Bird Flu Driving Egg Processing Costs Higher Processed eggs go into items ranging from salad dressings to cake mix. Bloomberg says the prices for those eggs intended for processing are soaring to record highs because of the avian influenza outbreak. The rapid spread of influenza could make this one of the biggest outbreaks in history. Twenty million birds have been culled from the nation’s flocks, which is hitting the market for breaker eggs hard. These eggs, many of which come from Iowa, are processed into liquid or powder form, and then go into manufactured foods. The high price for those breaker eggs is driving production costs higher for food makers, which, in turn, will push inflation higher. Many food manufacturers have shut down plants for sterilization and can’t fill orders. The price of eggs that get cracked and sold in liquid form hit a record high of $2.37 a pound last week. Dried eggs and powdered egg products are also at their highest-ever prices. *********************************************************************************** Four Meatpacker CEOs To Testify at Congressional Hearing The four CEOs of Cargill, Tyson Foods, JBS, and National Beef Packing have agreed to testify before Congress. Reuters says the meatpacker bosses will discuss cattle markets and price increases for consumers. House Ag Committee Chair David Scott says it’s important to find out why prices have dropped for ranchers and risen for consumers. “In addition to the CEO panel, we’ll also bring together a panel of ranchers to hear what industry consolidation has done to their bottom lines and viability,” Scott says. Rising prices and profits for meatpacking companies are likely to draw more scrutiny from lawmakers in Washington, D.C. The Biden administration announced a plan in January for new rules that will increase competition in the industry and stop “exploitation” within the sector. The concern is that a small group of meatpackers can dictate beef, pork, and poultry prices, which will add to inflation pressure caused by rising production costs. *********************************************************************************** First 2023 Farm Bill Hearing Scheduled for Michigan Michigan’s Debbie Stabenow, Chair of the Senate Ag Committee, and Ranking Member John Boozman (BOZE-man) of Arkansas announced the first 2023 Farm Bill listening session. The hearing will include input from a diverse range of agricultural producers and stakeholders about the next bill. The first hearing will be on Friday, April 29, at Michigan State University. Stabenow says the farm bill’s tradition of bipartisanship will continue with the next version. “We’ll be hearing from farmers and others impacted by the farm bill,” Stabenow says. “We’ll talk about how we can strengthen this important legislation, grow the economy, and strengthen the supply chain.” Boozman also says that crafting a farm bill that can become law is a delicate balance. “The needs of each region and each commodity must be balanced, which is why we must hear directly from stakeholders from across the country,” he says. Stream it live at ag.senate.gov. *********************************************************************************** Study Shows What Consumers Want in a New Farm Bill As the House Agriculture Committee plans for the next farm bill, consumers shared their opinions on food and agriculture policy in a new survey from Purdue University. The third Consumer Food Insights report offers a significant look into the popularity of specific policies and how opinions differ depending on a consumer’s income. One of the most popular policy choices was increased funding for research to create crops more resistant to heat, drought, and flooding. Another popular policy choice is paying farmers and ranchers to adopt climate-smart practices. Over 80 percent of consumer respondents supported those policies. Food safety and inspection ranked as the most important USDA budget category. The survey-based report comes from Purdue’s Center for Food Demand Analysis and Sustainability assesses food security and spending, consumer satisfaction and values, support for agriculture and food policies, and trust in information sources. Other supported policies include regulating environmental claims and expanding SNAP benefits. *********************************************************************************** Ethanol Production, Inventories Drop The Energy Information Administration says ethanol output declined week to week, and inventories dropped during the week ending April 8. The EIA report shows biofuel production fell to an average of 995,000 barrels a day, down from just over one million barrels a day during the prior week. In the Midwest, far and away, the largest-producing area in the country, output dropped to an average of 935,000 barrels a day, down from 946,000 one week earlier. Gulf Coast production rose to 24,000 barrels a day, on average, from 23,000 barrels the previous week. West Coast output also rose to an average of 9,000 barrels a day, up 2,000 barrels a day from the prior week. Rocky Mountain output stayed steady at 15,000 barrels a day, while East Coast production was also steady compared to the previous week at 12,000 barrels a day. Stockpiles dropped to 24.8 million barrels during the week ending on April 8. *********************************************************************************** USDA Releases Equity Action Plan The USDA made its Equity Action Plan available last week. The plan outlines actions the agency will take to advance equity among its programs to improve access to the programs and services for underserved stakeholders and communities. In its announcement, the USDA says past USDA programs and services were designed to benefit those with land, experience, money, or education while leaving behind those without the means and resources of one kind or another. Over several decades, congressional reports, internal data, civil rights investigations, court actions, and stakeholder testimony have documented the history of inequity and discrimination. “We are acknowledging USDA’s storied history and charting a new path forward,” says Ag Secretary Tom Vilsack. “Today’s USDA is committed to rooting out systemic racism and advancing justice, equity, and opportunity for all.” He also says the agency has to be responsive to the unique needs of underserved communities. For more information, go to usda.gov/equity.
| Rural Advocate News | Monday April 18, 2022 |
Monday Watch List Markets Back from a three-day weekend, traders will pore over the latest weather maps and any news regarding Ukraine. USDA's weekly grain export inspections will be released at 10 a.m. CDT Monday, followed by a new Crop Progress update at 3 p.m. Weather A system continues to bring scattered showers from the weekend through eastern areas of the country on Monday. A mix of rain and snow is found over the Midwest into the Northeast while scattered thunderstorms develop across the Southeast. Some breezy winds will continue on the backside of the system across the Upper Midwest while colder air is a feature for many areas, especially over the heavy snowpack in the Northern Plains.
| Rural Advocate News | Thursday April 14, 2022 |
Avian Influenza Cases Outpacing 2014/2015 Outbreak The number of highly pathogenic avian influenza cases in the United States are outpacing the 2014/2015 outbreak. However, the American Farm Bureau Federation says the higher numbers might be attributed to improvements in detection and reporting protocols. Farm Bureau economists found as of April 7, there have been more than 600 detections of HPAI in wild birds across 31 states, and 158 detections in commercial and backyard flocks across 25 states. The 2014/2015 outbreak prompted revisions to the National HPAI Surveillance Plan, which has led to heightened annual surveillance plans, providing poultry producers earlier notice to increase their biosecurity measures. AFBF economists analyzed HPAI detections in commercial flocks and found the Mississippi flyway is the most impacted, with 49 percent of detections. While HPAI has affected the laying hen population, inventory of eggs is actually 38 percent higher in 2022 than during the same time in 2015. Eggs should be found easily in the grocery store for Easter and Passover celebrations, but prices will be higher. *********************************************************************************** National Sorghum Producers Calls on USAID to Consider Grain Sorghum Offers National Sorghum Producers requests the U.S. Agency for International Development, USAID, to consider sorghum for aid programs. The organization sent a letter to USAID this week encouraging the department to proactively tender grain offers to provide crucial aid to the world’s hungry. The letter is in response to a worsening situation from the war in Ukraine and its impact on global food prices. NSP CEO Tim Lust says, “In Sub-Saharan Africa in particular, where sorghum is a staple food in many countries, the situation is exacerbated by severe drought and conflict.” The NSP letter encourages USAID, in coordination with the Department of Agriculture, to consider grain sorghum offers for food aid as action plans are formulated to address the worsening situation. Lust adds urgency is needed as grain traders are emptying stocks from the 2021 crop year. Sorghum is the fifth most important cereal crop in the world and ranks second, closely behind wheat, in total food aid purchases. *********************************************************************************** EPA Announces Plan to Protect Endangered Species and Support Sustainable Agriculture The Environmental Protection Agency this week released its first-ever comprehensive workplan to address the challenge of protecting endangered species from pesticides. The plan establishes four overall strategies and dozens of actions to adopt protections while providing farmers, public health authorities, and others with access to pesticides. EPA has an opportunity and an obligation to improve how it meets its duties under the Endangered Species Act when it registers pesticides under the Federal Insecticide, Fungicide, and Rodenticide Act. For most of EPA's history, the agency has met these duties for less than five percent of its FIFRA decisions. This has resulted in over 20 ESA lawsuits against the agency, which have increased in frequency in recent years, creating uncertainty for farmers. Through the workplan, EPA is describing its future directions in the hope of collaborating on implementation. Over the coming months, EPA will engage with a wide range of stakeholders to identify opportunities for collaboration and will continue seeking input on more effective and efficient ways to meet its ESA obligations. *********************************************************************************** Quick-Service Restaurants Recovered Faster Than Full-Service Following 2020 New data from USDA’s Economic Research Service shows quick-service restaurants recovered faster than full-service restaurants from the initial impacts of the COVID-19 pandemic. Consumer spending at both full-service and quick-service restaurants initially fell following the onset of the Coronavirus, with noteworthy differences between the two. Before the pandemic, consumer spending at both quick-service and full-service restaurants was near or slightly above previous year levels. As of March–May 2020, spending at quick-service restaurants had dropped to about $20.1 billion, 15.4 percent lower than average spending a year earlier. Full-service restaurants experienced a more severe drop during this period, likely related to the mandates limiting in-person dining across much of the country. Spending fell to $7 billion, 51.7 percent lower than the year before. Quick-service restaurants recovered faster than full-service restaurants, with spending surpassing previous year levels for the last four months of 2020. In contrast, by the end of 2020, full-service restaurants retained a 24.8 percent drop in year-to-year spending. *********************************************************************************** ADM to Increase Alternative Protein Production ADM announced this week it will invest approximately $300 million to significantly expand its Decatur, Illinois, alternative protein production. ADM also plans to open a new, state-of-the-art Protein Innovation Center, also in Decatur. An ADM spokesperson says, “The global trends of food security and sustainability are driving structural changes in the food industry, including strong growth in alternative proteins.” Alternative meat and dairy sales alone expected to grow by 14 percent a year and reach $125 billion in 2030. The production increase represents a significant expansion of ADM's alternative protein capabilities. The project, expected to be completed in the first quarter of 2025, will significantly strengthen ADM's ability to meet growing global demand by increasing soy protein concentrate capacity and nearly doubling extrusion capacity at ADM's Decatur complex. The Protein Innovation Center will further expand ADM's Decatur-based innovation complex. The new Decatur Innovation Center will bring together labs, test kitchens, and pilot-scale production capabilities to power innovation. *********************************************************************************** New Veterinary Debt Solutions Program Launches Farm Journal Foundation is partnering with the Zoetis Foundation to launch a new program to find solutions for relieving student debt in the veterinary industry. The effort’s long-term goal seeks to address shortages of veterinarians to work with farmers in rural areas. The new Veterinary Debt Solutions Program will convene leaders from across the livestock, academic, nonprofit, and veterinary sectors to address barriers that veterinarians face in building long-term careers in rural areas. High levels of student debt, combined with comparatively lower rural salaries and demanding workloads, discourage many young and diverse professionals from specializing in large animal veterinary science and entering the workforce, particularly in underserved rural areas. The veterinary profession is currently experiencing an urban-rural divide, with only about ten percent of final-year veterinary students expressing an interest in working with livestock after graduation, according to survey data from the American Veterinary Medical Association. As a result, about 500 counties across the U.S. now face shortages of veterinarians.
| Rural Advocate News | Thursday April 14, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, U.S. retail sales in March and an update of the U.S. Drought Monitor. The University of Michigan's index of consumer sentiment is set for 9 a.m., followed by the Energy Department's weekly report on natural gas storage at 9:30 a.m. At 2 p.m., USDA releases its monthly Livestock, Dairy and Poultry outlook. Weather The system that has dumped significant snowfall in the Northern Plains this week continues to wrap up on Thursday before pushing north into Canada. Some snow showers will remain across northern locations while the cold front pushes showers off the East Coast later in the day. Winds continue to be strong, especially across the north where blizzard conditions continue in North Dakota and wind gusts of 50 to 60 mph will be felt from the Dakotas through the northern half of the Midwest. Cold weather flowing into the Plains and Midwest are causing some late frosts as far south as Oklahoma and Arkansas Thursday morning.
| Rural Advocate News | Wednesday April 13, 2022 |
Biden Announces Summertime E15 Sales President Joe Biden Tuesday announced the Environmental Protection Agency is taking steps to allow for summertime E15 sales. Biden made the announcement during a visit to a POET ethanol facility in Iowa. To make E15 available in the summer, EPA is planning to issue a national emergency waiver. Without a waiver, E15 cannot be used in most of the country from June 1 to September 15, and the EPA plans to take final action to issue the emergency waiver closer to June 1. The White House says the EPA is also considering additional action to facilitate the use of E15 year-round. The EPA also Tuesday announced efforts to expand supply and choices for other forms of fuel, such as diesel and jet fuel. The EPA is proposing a new approval for canola oil that will add new pathways for fuels to participate in the Renewable Fuel Standard program to provide renewable diesel, jet fuel and other fuels. *********************************************************************************** Consumer Price Index Rises Again The Consumer Price Index increased 1.2 percent in March, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the all items index increased 8.5 percent before seasonal adjustment. Increases in the indexes for gasoline, shelter, and food were the largest contributors to the seasonally adjusted all items increase. The food index increased one percent in March as the food at home index increased 1.5 percent over the month. All six major grocery store food group indexes increased in March. The largest increase was for other food at home, which increased two percent over the month. The index for fruits and vegetables rose 1.5 percent following a 2.3 percent increase in February. The index for meats, poultry, fish, and eggs increased one percent in March, while the index for cereals and bakery products rose 1.5 percent, and the index for nonalcoholic beverages increased 1.2 percent over the month. The dairy and related products index also increased 1.2 percent in March. *********************************************************************************** NCBA Renews Call for Suspension of Brazilian Beef Imports Following a USDA report highlighting an increase in Brazilian beef imports, the National Cattlemen's Beef Association renewed its call to immediately suspend fresh beef imports from Brazil. NCBA has repeatedly called for a thorough audit of Brazil's animal health and food safety system, to ensure the safety of the U.S. cattle herd. In 2021, Brazilian exports to the United States increased by 131 percent. In the first three months of 2022, Brazil has already shipped more than 50,000 metric tons of fresh beef to the United States. The surge of imports triggered a temporary tariff safeguard of 26.4 percent that will apply to Brazilian beef imports for the rest of 2022. While a temporary tariff increase may discourage further imports, NCBA says it does not address the underlying concern over Brazil's repeated failure to adhere to international animal health and food safety standards. NCBA believes restricting Brazilian imports is essential until Brazil proves it can adhere to U.S. standards. *********************************************************************************** Argentina and Brazil Could Expand Wheat Production The war in Ukraine is expected to expand wheat production in Argentina and Brazil, the primary wheat-producing nations in South America. Agriculture and consumer economics experts from the University of Illinois say both nations will likely already increase wheat planting this season, which begins in May 2022. The high price of wheat after a significant shock to agricultural commodity markets caused by the Russian invasion of Ukraine is an incentive for increased planting of wheat in Argentina and Brazil, as well in the United States. Argentina is the primary South American producer and exporter of wheat, accounting for about seven percent of the global exports. Brazil, in contrast, is a prominent importer, mainly from Argentina. The ongoing conflict in Ukraine has caused wheat supply and food security concerns for many major wheat importers that depend on Black Sea supplies. In this case, the University of Illinois experts say South American producers may increase supply to African countries. *********************************************************************************** Tractor and Combine Sales Make First Decline Since July 2021 Ag tractor and combine sales posted their first decline in March since July 2021, according to the Association of Equipment Manufacturers. U.S. total farm tractor sales fell 21.1 percent for the month of March compared to 2021. U.S. combine sales for the month dropped 10.2 percent to 343 units sold. Total farm tractor sales are now down 7.9 percent year-to-date, while combines sales are down 19.2 percent. In Canada, sales fell in all segments for a 5.1 percent decline in total farm tractor sales. Combine sales were down as well in Canada, falling 36.8 percent to 60 units sold. Year-to-date farm tractor unit sales are down a slight 0.7 percent in Canada, while harvesters are down 36.2 percent. AEM’s Curt Blades says they expected the declines, adding, “Inventory levels are down more than ten percent in both the U.S. and Canada, and this is the result of supply chain difficulties catching up with this segment of the manufacturing industry.” *********************************************************************************** Fall Seasonal Effects Connected to E. coli Outbreaks in Bagged Romaine USDA Agricultural Research Service scientists are researching an underlying pattern of seasonal E. coli outbreaks linked to bagged romaine lettuce. Although contamination of lettuce products is rare, between 1998 and 2019, 36 outbreaks that traced back to lettuce were recorded by the Centers for Disease Control and Prevention. Most of the outbreaks involved romaine lettuce harvested in the fall on the California Central Coast and late winter in Southern California and Arizona. One of the most significant findings of the study is that E. coli survived on average 5.6 times better in cold-stored packaged romaine harvested in the fall than on the same varieties harvested in late spring. The research also found the bacterial community present on bagged romaine differed by season, lettuce deterioration state, and whether survival of E. coli on the lettuce was high or low. An ARS Researcher says, “Our observations definitely open an entire new branch of inquiry about outbreak seasonality.”
| Rural Advocate News | Wednesday April 13, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, the U.S. Labor Department will release its producer price index for March with big increases, similar to Tuesday's consumer price index expected. At 9:30 a.m. CDT, the Energy Department will release its weekly energy inventories, including ethanol production. Traders will continue to keep an eye on this week's storms and news regarding Ukraine. Weather A system continues to spin up across the Upper Midwest on Wednesday. Heavy snow that has been falling since Tuesday in North Dakota continues Wednesday. The cold front to the system will move through the Mississippi Valley this afternoon, sparking widespread showers and thunderstorms, which are expected to be severe with all hazards being possible. The storms will push toward the Appalachians overnight and weaken. Colder air settling in across northern zones is significantly below normal and will lead to slower planting progress for the coming week.
| Rural Advocate News | Tuesday April 12, 2022 |
Biden Announces Rural Playbook, Infrastructure Tour The White House released its Bipartisan Infrastructure Law Rural Playbook. It will help local, state, tribal, and territorial governments in rural areas unlock the benefits of investments in the national infrastructure. The president and other senior administration officials will also launch an infrastructure tour to directly-engage rural communities across the country. The Rural Playbook provides rural communities with information on the “what, when, where, and how to apply” for funding under the law, so no lobbying is necessary to access it. The Playbook also identifies over 100 programs funded under the law with federal cost-share flexibilities and matching requirement waivers. “Building a better America requires that these funds reach rural areas that have been left behind for way too long,” says Mitch Landrieu (LAN-drew), Senior Advisor and Infrastructure Implementation Coordinator. “We see you, and major investments are on the way.” The goal is to make sure all Americans benefit from the historic investments. *********************************************************************************** Investigators Solve a $40 Million Crop Insurance Fraud Case A crop insurance fraud case totaling 40 million dollars led to 23 people getting charged with a crime and 17 other people paying civil fines or penalties. DTN says the case began in 2014 at the USDA’s Inspector General Office when it received a phone tip about alleged fraud at Clay’s Tobacco Warehouse in Mount Sterling, Kentucky. The defendants are accused of cheating the crop insurance program out of anywhere from under $10,000 to many millions of dollars. The most common scheme centered around farmers that raised a good tobacco crop. But, they worked together with insurance agents and adjusters to claim the crop got damaged by storms or pests. After the farmer filed an insurance claim and received payment, the insurance agents and adjusters got kickback payments. FBI investigators say farmers had help from several employees at Clay’s Tobacco House, including one employee who was also a crop insurance agent. *********************************************************************************** U.S. Cattlemen Applaud Bill Updating the Packers and Stockyards Act The bipartisan Amplifying Processing of Livestock in the United States Act, or A-PLUS Act, got introduced into the House last week. The U.S. Cattlemen’s Association says it’s a long-overdue idea that will help spur more processing capacity in the U.S. if it gets enacted. It would allow livestock auction markets to hold an ownership interest in, finance, or participate in the management or operation of a packing facility with a slaughter capacity of fewer than 1,000 animals per day or 250,000 a year. “The Packers and Stockyards Act is over 100 years old, and it’s time to modernize parts of this historic legislation that no longer make sense in the modern world,” says USCA President Brooke Miller. “If a family-owned and regionally-based livestock auction wants to invest in a local processing facility to increase processing capacity for producers in their area, there shouldn’t be an outdated regulation holding them back from doing so.” *********************************************************************************** Growth Energy Asks STB to Address Rail Supply Chain Disruptions Last week, Growth Energy sent a letter to the Surface Transportation Board to talk about their concerns over significant delays in rail service. Those delays impacting the biofuel industry include empty car arrivals and extreme delays in the manifest and unit train traffic across the rail supply chain.. Growth Energy’s members ship nearly 70 percent of ethanol by rail through many key distribution points throughout North America. The organization says this disruption affects not only businesses but American drivers as it can ultimately mean less biofuel is available for blending. “While we certainly understand that a variety of factors have contributed to the rail disruptions, the nation's railroads must do everything they can to ensure that critical fuel supplies reach markets as quickly as possible,” says Growth Energy CEO Emily Skor. “It’s essential that ethanol reach its destination to benefit American drivers facing high gas prices.” *********************************************************************************** Applications Open for Lamb Feeders Leadership School The National Lamb Feeders Association is accepting applications for the Howard Wyman Sheep Industry Leadership School, which is from June 19-22 in Colorado. The school starts on Sunday, June 19, with a meet-and-greet at the hotel in Greely before the busy week kicks off. Monday, the students will travel to Brush, Colorado, to tour the Colorado Lamb Processors facility, followed by multiple feedlot tours. The day ends with a tour of the Eldon Mars Dairy and a lamb dinner at the Eaton Country Club. Tuesday will be more in the classroom, with presentations on marketing options for lambs, American Sheep Industry Association programs, and plenty of time for group discussion on issues and challenges of marketing options. The school finishes up on Wednesday morning and offers a time to ask questions to sheep industry leaders and school presenters. The deadline to apply is April 29, and for more information, go to lambfeedersusa.org. *********************************************************************************** World Crop Acres Grow by 73 million in Two Years The total number of global crop acres rose by 73 million during the last two years. Agricultural Economic Insights first observed an uptick in global acreage in 2020. The number of acres had trended sideways because of sluggish commodity prices and profitability from 2014 through 2019. After acres began increasing in 2020, another increase was observed and a record 2.43 billion acres got harvested in 2021. From 2019 to 2021, the total number of acres grew by 3.7 percent, or 73 million acres. As far as which crops contributed the most to the recent expansion, AEI says look no farther than oilseeds. From 2016 to 2021, soybean production grew by 25 million acres, which accounted for 40 percent of the total acreage increase. By way of comparison, corn acreage expanded by only 15 million acres. AEI says profitability was behind the surge in planted acres. When profits are strong, producers always find ways to bring more acres online.
| Rural Advocate News | Tuesday April 12, 2022 |
Tuesday Watch List Markets The U.S. Labor Department will release the consumer price index for March at 7:30 a.m. CDT Tuesday. Traders will examine the weather forecasts and watch for the latest news regarding Ukraine. A Treasury report on the federal budget is set for 1 p.m. Weather Though scattered showers and thunderstorms linger in the Tennessee Valley on Tuesday, the focus is farther west. A large storm system is moving into the Plains. Heavy snow is beginning to form in Montana and North Dakota. Strong winds picking up throughout the day will create blizzard conditions for these areas. Strong to severe storms are expected to develop later this afternoon and evening across the eastern Plains, moving toward the Mississippi River overnight. Stronger winds in the rest of the Plains could cause an increased risk for wildfires as well.
| Rural Advocate News | Monday April 11, 2022 |
Food Prices Set a Record During March The United Nation’s Food and Agriculture Organization says its Food Price Index set a record in March. The index averaged 159.3 points, up almost 18 points from February. The 12 percent jump in the index during March sent it to the highest level since the index began in 1990. The latest increase reflects all-time highs for vegetable oils, cereals, and meat sub-indices, while sugar and dairy products also rose significantly. The Cereal Price Index averaged 170 points in March, up 25 points from February. The 17 percent increase reflected a surge in world wheat and coarse grain prices, largely caused by export disruptions from Ukraine. The Vegetable Oil Price Index averaged 248 points in March, up 47 points from February. The Dairy Price Index averaged 145.2 points in March, up almost four points and the seventh-consecutive monthly increase. The Meat Price Index rose by 5.5 points and the Sugar Price Index was 7.4 points higher. *********************************************************************************** EPA Denies Biofuel Waivers, Offers Alternative Relief The Environmental Protection Agency denied 36 petitions from oil refiners seeking exemptions from the national biofuel blending laws for the compliance year 2018. However, the agency said last week that it will provide 31 of the refineries with another avenue to get relief. A 2020 court decision narrowed the criteria for exemptions under the Renewable Fuel Standard’s blending quotas, and the EPA says the denial follows the law and recent court decisions. The agency added that the alternative relief it plans to grant to 31 of the refineries will allow them to meet their 2018 compliance requirements without having to purchase blending credits. The EPA says that decision comes from the “extenuating circumstances,” including the fact that the plants had already been granted waivers. Reuters says the agency is taking this approach because the amount of renewable fuel used in 2018 will be unchanged regardless of any action refiners take now. *********************************************************************************** Biofuel, Ag Groups Respond To EPA Refinery Exemption Decisions Top farm and biofuel groups reacted to the Environmental Protection Agency’s decision to reverse 31 controversial small refinery exemptions granted in August 2019. They’re disappointed that the agency is allowing the refineries with previously-granted SREs to not have to take additional steps to meet obligations under the RFS. Groups like Growth Energy, the Renewable Fuels Association, National Corn Growers Association, and others say the denial is an important step in reversing past refinery exemption abuses. “However, the decision fails to remedy the economic harms that the improperly granted 2018 SREs have already caused,” the groups say in their statement. “The agency’s readiness to excuse individual refineries from their obligations to comply with the 2018 blending requirements comes at the expense of our biofuel producers, farmers, and American consumers.” The groups say that low-carbon biofuels are the single best tool to deliver immediate relief at the pump, strengthen U.S. energy security, and protect the climate. *********************************************************************************** USDA Releases April WASDE Report The USDA’s April World Ag Supply and Demand Estimates report says the Russian military action in Ukraine significantly increased the uncertainty of global supply and demand conditions. The corn outlook is for offsetting changes to feed and residual use and corn used for ethanol production. Corn ending stocks are unchanged at 1.44 billion bushels, and the season-average farm price rose 15 cents to $5.80 a bushel. U.S. soybean supply and use changes for 2021-2022 include increased exports and seed use and lower ending stocks. Soybean ending stocks are projected at 260 million bushels, down 25 million due to a corresponding 25 million bushel increase in exports. The season-average soybean price is unchanged at $13.25 per bushel. The wheat outlook calls for stable supplies, lower domestic use, reduced exports, and higher ending stocks. Exports were lowered by 15 million bushels to the lowest export numbers since 2015-2016. The season-average farm price rose 10 cents to $7.60 a bushel. *********************************************************************************** Surface Transportation Board to Deal with Rail Issues The Surface Transportation Board says it will hold public hearings on April 26 and 27 on recent rail service problems and recovery efforts involving several Class One carriers. The Board plans to direct several executive-level officials from many major railways to appear during the hearing. Rail network reliability is essential to the nation’s economy and is a big priority of the Board. Ag Secretary Tom Vilsack and other stakeholders have filed reports about the serious impact of the service trends on rail users, especially those who ship agricultural and energy products. “During my time on the Board, I’ve been concerned about the priority that Class One railroads have placed on cutting costs and satisfying shareholders even at the cost of consumers,” says Board Chair Martin Oberman. “That strategy has led to collectively reducing their workforce by 29 percent.” He also says the Board will ask the executives what they’ll do to fix the issues. *********************************************************************************** Chinese National Sentenced in Agricultural Espionage Conspiracy A Chinese national formerly residing in Missouri was sentenced to 29 months in prison and a $150,000 fine for conspiring to commit economic espionage. Xiang (she-AHNG) Haitao pled guilty to the charge in January. Court documents say Xiang conspired to steal a trade secret from the Climate Corporation, a subsidiary of Monsanto, to benefit a foreign government. “Xiang conspired to steal an important trade secret to gain an unfair advantage for himself and the Chinese government,” says Assistant Attorney General Matthew Olson of the Justice Department’s National Security Division. “The victim companies invested significant time and resources to develop this intellectual property.” Olsen also says espionage is a serious offense that can threaten U.S. companies’ competitive advantage. After leaving Monsanto, Xiang attempted to take Monsanto’s computer algorithm called the Nutrient Optimizer on an electronic device back to China. He was arrested and returned to the U.S. in November 2019.
| Rural Advocate News | Monday April 11, 2022 |
Monday Watch List Markets Traders will return from the weekend, checking the latest weather forecasts and any news regarding Ukraine or Russia. At 10 a.m. CDT, USDA weekly grain export inspections will be released, followed by the second Crop Progress report of 2022 at 3 p.m. At 2 p.m., USDA's Historical Track Records of Crop Production will be available, an annual reference source. Weather Scattered showers and thunderstorms are developing along a weak system moving through the Midwest and Delta Monday. Some of these thunderstorms could be strong to severe from northeast Texas into the northern Delta. But the main story for the week is the storm system moving through the West that will bring blizzard conditions to the Northern Plains and multiple rounds of severe weather elsewhere, along with heavy rains. However, the southwestern Plains hard red winter wheat areas are looking to be bypassed yet again as soils continue to be very dry. Cold air following the system will slow down agricultural progress.
| Rural Advocate News | Friday April 8, 2022 |
Global Beef Demand Continues to Soar U.S. beef exports turned in another strong performance in February. USDA data compiled by the U.S. Meat Export Federation says the strong month for beef was led by excellent value growth in key Asian and Latin American markets. Beef exports hit 108,500 metric tons in February, five percent higher than last year. Beef’s export value rose 35 percent to over $904 million. “Broad-based growth has become a recurring theme for U.S. beef exports as international demand has never been higher and global supplies remain tight,” says USMEF President and CEO Dan Halstrom. Pork exports trended lower as larger shipments to Mexico and Japan didn’t offset a decline in Chinese and Hong Kong demand. February pork exports totaled 198,530 metric tons: 17 percent lower than a year ago. Pork export value fell 14 percent from last year to $541 million. USMEF says logistical challenges were compounded in February by lower-priced pork offered by competitors. *********************************************************************************** Senate Ag Leaders Ask Biden to Fill USDA Vacancies Senators Debbie Stabenow, Chair of the Senate Ag Committee, and Ranking Member John Boozman (BOZE-man) asked President Biden to quickly fill vacancies at USDA. They say filling the open positions can help increase trade opportunities for American agriculture. In a letter sent to the White House, the leaders ask Biden to quickly nominate a candidate to serve as the Chief Agricultural Negotiator in the Office of the U.S. Trade Representative. They also want a candidate in place to serve as the Undersecretary for Trade and Foreign Agricultural Affairs at the U.S. Department of Agriculture. “Global agricultural markets are highly competitive,” the senators wrote. “Every day, new trade barriers against American agricultural products are being devised to limit our access.” They also point out that the agricultural industry needs strong advocates that understand the needs of American farmers, ranchers, and foresters and who will represent their collective interests on the world stage. *********************************************************************************** NCBA Supports the A-PLUS Act The National Cattlemen’s Beef Association supports the A-PLUS ACT, which stands for Amplifying Processing of Livestock in the United States. The bill was introduced in the U.S. House by Missouri Republican Vicky Hartzler and California Democrat Jimmy Panetta. The bill would clarify regulations under the Packers and Stockyards Act to allow livestock market owners to have an ownership stake in small meatpacking entities. Backers say that’s another tool to boost processing capacity and solve some key challenges in cattle marketing. “The need for new packing facilities has become a critical issue for the cattle industry,” says Clint Berry, chair of NCBA’s Livestock Marketing Council. “The A-PLUS Act makes it possible for the marketing segment of the cattle industry to be included as investors in these facilities, helping reduce dependence on major packers and improve the competitiveness of the live cattle market.” NCBA also says the meatpacking sector continues to be a bottleneck in the supply chain. *********************************************************************************** CHS Reports Second Quarter Earnings CHS released its earnings results for the second quarter that ended on February 28. The company reported a second-quarter income of $219 million and revenues of $10.3 billion. That compares to a net loss of $38.2 million and $8.3 billion in revenues for the first quarter of fiscal year 2021. For the first six months of the current fiscal year 2022, the company reported a net income of $671 million and revenues of $21.2 billion. Some highlights in the fiscal year include refining margins in their energy segment, which were higher due to global supply and demand factors, and more favorable pricing for Canadian crude oil, which CHS refines. Robust global demand, coupled with increased market volatility, resulted in higher commodity prices and improved earnings, primarily in the company’s agricultural segment. “The U.S. agricultural industry continues to experience strong demand for grain and oilseed commodities,” says Jay Debertin (Deh-BEHR-tin), president and CEO of CHS, Inc. *********************************************************************************** USDA Forming Subcommittee on Rural Community Economic Development The USDA says it will establish a Rural Community Economic Development Subcommittee as a part of its recently launched Equity Commission. “This new subcommittee will be crucial to addressing issues of persistent poverty in rural communities,” says Ag Secretary Tom Vilsack. “We are committed to giving each recommendation the Equity Commission makes a full consideration to implement systemic, lasting change.” Deputy Secretary Jewell Bronaugh says,” The work of this subcommittee will be invaluable to the commission as we seek to provide recommendations on how underserved rural communities can obtain equity access to USDA programs. I’m hopeful the work of this commission and subcommittee will break down barriers and increase the public’s access to, and trust in, USDA’s programs and services.” USDA is asking for nominations for membership on the RCED subcommittee. Nominations are open to the public, and any interested people or organizations may nominate qualified individuals. Learn more at usda.gov. *********************************************************************************** Bennet Wants Full Funding, Implementation of Fire Recovery Efforts Colorado senator Michael Bennet wrote a letter to the USDA and the Forest Service asking the agencies to fully fund and implement fire recovery efforts before spring arrives. Snowmelt runoff and seasonal rains could cause further flooding and damage Colorado watersheds. Bennet says his state faces a funding gap of about $146 million for wildfire recovery. “Two catastrophic Western wildfires burned over 400,000 acres in Colorado,” Bennet wrote in his letter to Ag Secretary Tom Vilsack and Forest Service Chief Randy Moore. The Colorado lawmaker wants the Biden Administration to prioritize deploying fire recovery funds. Colorado, like many other western states, was hit hard by wildfires in recent years. Bennet wants the agencies to not only fully fund recovery efforts immediately, but also develop long-term solutions to support Colorado communities on the frontlines of recent wildfires. “State and local governments shouldn’t carry the burden of post-fire recovery on Federal lands,” he says.
| Rural Advocate News | Friday April 8, 2022 |
Friday Watch List Markets Traders continue to keep an eye on the latest weather forecasts and any news regarding Russia or Ukraine. At 11 a.m. CDT, USDA will release its World Agricultural Supply and Demand Estimates for April, including the latest crop estimates from South America. Weather A system continues to spin across the Great Lakes on Friday, bringing spotty showers throughout the Midwest. Winds have calmed down significantly across the Plains but may still be breezy in spots. Cold air has filled in across much of the country east of the Rockies, with potential frosts and freezes from the Midwest to the Mid-South through Sunday morning. Damage to wheat is unlikely but temperatures will slow the warming of soils prior to planting row crops.
| Rural Advocate News | Thursday April 7, 2022 |
Pork Producers Press Politicians on Public Policies Pork producers are in Washington, D.C., as part of the National Pork Producers Council's Capitol Hill fly-in. This week, the organization is highlighting top public policy issues facing the industry. NPPC says the top priorities include preparing for and preventing foreign animal diseases, addressing an agricultural labor shortage, and increasing pork exports. Nearly 100 farmers from across the country are participating in person for the first time in two years. NPPC President Terry Wolters says, “Challenges facing our industry continue to evolve, and we hope our efforts this week help lawmakers understand why these issues are so important.” Producers urge lawmakers to support additional funding for foreign animal disease prevention and preparedness efforts, particularly around African swine fever. Last July, ASF was detected in the Western Hemisphere for the first time in more than 40 years. And, to address an ongoing labor shortage, producers want lawmakers to expand the H-2A visa program to year-round agricultural workers. *********************************************************************************** USDA Takes Action to Strengthen Pollinator Research Support The Department of Agriculture Wednesday announced a strengthened commitment to advancing research and priorities that support pollinator health. USDA is soliciting nominations for members to serve on its newly formed USDA National Pollinator Subcommittee. The subcommittee is part of the National Agricultural Research, Extension, Education, and Economics Advisory Board. The board provides feedback to the Agriculture Secretary, USDA’s science agencies and university collaborators on research, education, extension and economics priorities and policies. Agriculture Secretary Tom Vilsack says, "We are keenly interested in understanding the stressors that impact pollinators, including climate change, pests, pathogens and reduced forage." The Pollinator Subcommittee will provide input on annual USDA pollinator priorities and goals and will make pollinator health-related recommendations to strengthen USDA research efforts. USDA seeks nominations for subcommittee members from individuals with diverse expertise in pollinator health, and expects to appoint seven new subcommittee members. The application deadline is May 31, 2022, and applications should be sent to nareee@usda.gov. *********************************************************************************** USDA: Irrigation Organizations Drought Plans Specify Water Restrictions Guidelines for implementing drought-induced water restrictions on water deliveries and pumping are the most common component in the formal drought plans of irrigation organizations. In the 2019 Survey of Irrigation Organizations, USDA asked groundwater organizations and water delivery organizations, such as irrigation districts and ditch companies, questions about their formal drought planning. USDA’s Economic Research Service updated the data from the 2019 survey Wednesday. USDA found that around one-fifth of all organizations had a formal, written drought plan. Between 69 percent and 73 percent of water delivery organization plans and 80 percent of groundwater organization plans included details about drought-induced water restrictions as a component of their plans. Land fallowing provisions and off-year water storage strategies typically occurred in fewer than 20 percent of plans for most organizations. About one-third of large delivery organization plans included provisions for price increases and water supply augmentation during drought by purchasing additional water. *********************************************************************************** Environmental Groups, Fishing Industry Urge Biden to Rollback Trump Executive Order More than 175 fishing, food advocacy and environmental groups call on the Biden administration to revoke the Trump Administration's executive order, Promoting Seafood Competitiveness and Economic Growth. The groups say the executive order shortcuts the regulatory process for developing industrial offshore finfish aquaculture facilities in federal waters without Congressional oversight. Offshore finfish aquaculture is a type of finfish farming using massive net pens to raise fish. In a letter to President Biden, the groups say, “Industrial offshore fish farms would contaminate our marine waters with drugs, chemicals, and untreated wastes, while creating a breeding ground for pests and diseases.” Organizers of the letter with Don’t Cage Our Oceans estimate that the organizations in total represent at least nine million individual members across the country and 250,000 businesses, including 5,000 fishing businesses. The open letter calls for new measures, like the Keep Finfish Free Act, to conserve ocean resources and invest in sustainable fishing methods and small-scale aquaculture systems. *********************************************************************************** USDA Announces Food Insecurity Grants for Alaska, Hawaii, U.S. Territories USDA’s Agricultural Marketing Service this week announced $5 million in funding available to Alaska, Hawaii, and certain U.S. territories to support small-scale gardening, herding, and livestock operations. The Micro-Grants for Food Security Program is authorized by the 2018 Farm Bill and awards grants to eligible states and territories through a non-competitive application process. USDA Undersecretary for Marketing and Regulatory Programs, Jenny Lester Moffitt, says, “These Micro-Grants will help eligible states and territories increase the quantity and quality of locally grown food.” The funding supports small-scale gardening, herding and livestock operations. States and territories that receive funding will then competitively grant subawards. Eligible applicants include agricultural agencies or departments in Alaska, American Samoa, the Northern Mariana Islands, Puerto Rico, Micronesia, Guam, Hawaii, the Marshall Islands, the Republic of Palau, and the United States Virgin Islands. AMS encourages applications for initiatives that benefit smaller farms and ranches, new and beginning farmers and ranchers, underserved producers, veteran producers, and underserved communities. *********************************************************************************** Case IH and Lee Brice Honor Farmers in Upcoming Summer Tour Country music singer and songwriter, farmer and Case IH brand ambassador Lee Brice will celebrate producers this summer throughout his ‘Label Me Proud Tour’ with his song “Farmer.” The song was written as part of Case IH’s Built by Farmers initiative. The campaign connects the company’s employees, dealers and their families rooted in agriculture with the farmers who use Case IH equipment and technology. Born and raised in South Carolina, Brice pays homage to North America’s dedicated producers and ranchers through his lyrics. The song debuted at the 2021 Farm Progress Show Concert in Decatur, Illinois. Brice says, “I wrote ‘Farmer’ to honor the families and individuals who are up before sunrise, doing the backbreaking work it takes to provide food and resources for homes all across America.” The cross-country Label Me Proud tour will span 23 cities, and select stops throughout the tour will feature “Farmer” in the concert setlist.
| Rural Advocate News | Thursday April 7, 2022 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The Energy Department's report of natural gas storage is due out at 9:30 a.m. Traders continue to monitor events in Ukraine and the latest weather developments. Weather Another day of strong winds is on tap for the Plains Thursday, causing increased wildfire risks and drying out soils. Some occasional showers will continue across the Upper Midwest and eastern Dakotas while any heavier showers will be found along the East Coast, again with a severe weather threat.
| Rural Advocate News | Wednesday April 6, 2022 |
March Ag Economy Barometer Lower The Purdue University-CME Group Ag Economy Barometer dipped to a reading of 113 in March, the weakest farmer sentiment reading since May 2020, which was in the early days of the pandemic. The March reading was 12 points lower than a month earlier and 36 percent lower than in March 2021. Compared to a year earlier, producers' appraisal of current conditions was down 44 percent, while their expectations for the future fell 31 percent. Producers continue to say that they expect their farm's financial performance to decline in 2022 compared to 2021. The biggest concern among producers for their farming operation this year continues to be higher input costs. The war in Ukraine exacerbated producers' worries about production costs, with nearly two-thirds of farmers expecting the biggest impact on U.S. agriculture from the war to be on input prices. Each month, the barometer is calculated from 400 U.S. agricultural producers' responses to a telephone survey. *********************************************************************************** U.S., Mexican Agriculture Secretaries Meet to Address Shared Priorities Agriculture Secretary Tom Vilsack met with his counterpart in Mexico Tuesday and announced the opening of Mexico to U.S. potato exports by May 15. A Department of Agriculture statement says they met to continue cooperation on shared priorities, including open trade, science-based policy-making, and sustainable and climate-smart agricultural production. Following the meeting, Vilsack announced that the United States and Mexico have concluded all necessary plant health protocols and agreed to a final visit by Mexican officials in April that finalizes expanded access to the entire Mexican market for all U.S. table stock and chipping potatoes. The leaders also discussed enhancing plant and animal health cooperation to meet emerging threats and to promote food security. Two-way trade in food and agricultural products between the United States and Mexico reached a record $63 billion in 2021, and the U.S.-Mexico-Canada Agreement has further enhanced the strong relationship between the North American neighbors. *********************************************************************************** USDA to Host Data Users’ Meeting USDA’s National Agricultural Statistics Service will hold its biannual Data Users’ Meeting later this month. USDA is hosting the meeting to share recent and pending statistical program changes with the public, and to solicit input on programs important to agriculture. The event is organized by NASS in cooperation with USDA’s World Agricultural Outlook Board, Farm Service Agency, Economic Research Service, Agricultural Marketing Service, Foreign Agricultural Service and the U.S. Census Bureau. Joe Parsons, chair of USDA’s Agricultural Statistics Board, says, “This cooperative venue helps to drive change in our agricultural statistics programs to ensure we are meeting the needs of all stakeholders.” The meeting will be Tuesday, April 19, 2022, from 1–4:30 p.m. CT. The event will be held at the University of Chicago’s Gleacher Center. A virtual attendance option will also be available. The meeting is free and open to the public, but registration is required. Find registration information at nass.usda.gov. *********************************************************************************** Report Examines Impact of Increased Use of Non-GM Feed New research shows that greenhouse gas emissions on farms could rise if more U.S. food companies require feed for their livestock and poultry be free from genetically modified ingredients. The report says grain elevator and feed mill product handling and production requirements would be greater, and the price of meat, milk and eggs for consumers could increase. The Institute for Feed Education and Research released the report Tuesday. The study examined the environmental and economic implications should U.S. animal food manufacturers need to boost the production of non-GM feed. Partnering with Dairy Management Inc., MFA, the National Corn Growers Association, the U.S. Poultry and Egg Association and others, the research seeks to inform companies throughout the food value chain of the complexities involved with producing GM and non-GM feed lines. Lara Moody, IFEEDER executive director, says the report “shows that when you limit the use of safe, proven technologies, like GM crops, the costs for both the environment and consumers can increase.” *********************************************************************************** Thune, Klobuchar Urge EPA to Update Biofuel Emissions Modeling Two Senate Ag Committee members recently urged the Environmental Protection Agency to update its greenhouse gas modeling for biofuels. Senators John Thune, a South Dakota Republican, and Amy Klobuchar, a Minnesota Democrat, asked the EPA to adopt the Argonne National Lab's Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation, or GREET model. The lawmakers say these long-overdue updates would permit consistent comparison between petroleum-based fuels, natural gas systems, electric generation, and renewable fuels. In a joint statement, the Senators say, "The GREET Model has been among the most widely utilized sources of GHG data, underpinning research that finds corn ethanol can currently achieve 46 percent lower lifecycle carbon intensity than gasoline." They made the request in a letter to the EPA, also signed by seven other Midwest farm-state Senators. Thune and Klobuchar previously introduced the Adopt GREET Act, legislation that would require the EPA to update its greenhouse gas modeling for ethanol and biodiesel. *********************************************************************************** Upper Missouri River Basin Forecast Runoff Well Below Normal Reservoir inflows in the Missouri River basin above Sioux City, Iowa, were well-below average in March. The March runoff of 1.5 million acre-feet was 48 percent of average for the month. The updated 2022 upper Basin runoff forecast is 17.8 million acre-feet, 69 percent of average, approximately 2.6 million acre-feet less than the March 1 forecast. John Remus of the U.S. Army corps of Engineers says, "Due to the lack of plains snowpack in 2022, below-average mountain snowpack, and dry upper Basin conditions, we expect upper Missouri River Basin runoff to be below average." The runoff forecast is based on soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. System storage is currently 48.4 million acre-feet, which is 7.7 million acre-feet below the top of the carryover multiple use zone. Conservation measures, such as minimum winter releases and reduced flow support for navigation, are implemented as the amount of water in the reservoir system declines.
| Rural Advocate News | Wednesday April 6, 2022 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report is due out at 9:30 a.m. CDT, including ethanol production. Traders continue to monitor the latest weather forecasts and watch for any news from Ukraine. Weather After an active severe weather day Tuesday, the Southeast will have another day of severe storms on Wednesday. A system pinwheeling in the Midwest will send its cold front farther east throughout the day with a line of showers and thunderstorms. Storms are likely to develop in the warm and humid air ahead of it in the Southeast. Meanwhile, colder and windy conditions continue to flow into the Plains and Midwest behind the system.
| Rural Advocate News | Tuesday April 5, 2022 |
USDA Doesn’t Intend to Release CRP Acres for Crop Production A letter obtained by Politico indicates the Department of Agriculture will not open Conservation Reserve Program acres for crop production. In a letter to the National Grain and Feed Association, Agriculture Secretary Tom Vilsack says, “Quickly converting this land to crop production is clearly unfeasible.” Vilsack notes that most acres enrolled in CRP are largely non-prime farmland, according to Politico. The letter comes as some lawmakers want to open CRP acres to offset global food worries stemming from the Russia-Ukraine war. On Friday, Senator Macro Rubio, a Florida Republican, and Cynthia Lummis, a Wyoming Republican, penned their own letter to Vilsack requesting the action. They urged Vilsack to allow flexibilities for prime agricultural lands under the Conservation Reserve Program. The Senators write, “Allowing crop production on CRP lands is a critical step for stabilizing food prices that have skyrocketed in recent months.” However, Vilsack says only 1.3 percent of CRP acres are considered prime farmland. *********************************************************************************** House Lawmakers Introduce Bill to Establish Tax Credit for Truck Drivers A pair of U.S. House lawmakers recently introduced legislation to help address the current truck driver shortage in the United States. In 2021, American trucking companies experienced a record deficit of approximately 80,000 drivers due to hiring and retention challenges. The bipartisan Strengthening Supply Chains Through Truck Driver Incentives Act would create a two-year refundable tax credit of up to $7,500 for truck drivers holding a valid Class A commercial driver’s license who drive at least 1,900 hours in the year. The legislation would also create a refundable tax credit of up to $10,000 for new truck drivers or individuals enrolled in a registered trucking apprenticeship. Virginia Democrat Abigail Spanberger and Wisconsin Republican Mike Gallagher introduced the legislation Friday. Spanberger says the legislation would "encourage more young people to hop in the driver's seat, reduce headaches for trucking businesses, and make sure experienced drivers are rewarded for their hard work." *********************************************************************************** USDA APHIS Celebrates 50 Years USDA’s Animal and Plant Health Inspection Service is celebrating a major milestone – 50 years of serving the public as a federal agency. USDA created APHIS on April 2, 1972, to consolidate animal health, plant health, and inspection duties under one roof. The new agency focused on protecting American agriculture and natural resources, along with ensuring the humane care of certain animals. While both APHIS and the world have changed a lot over the past 50 years, the agency’s key mission remains the same today. APHIS Administrator Kevin Shea says, “The keys to APHIS’ long-term success are our dedicated, skilled employees and the strong partnerships we develop with our many stakeholders.” Some of APHIS’ key accomplishments over the past 50 years include eradicating plant pests like European grapevine moth and plum pox from the country, while reducing the impact of other plant diseases, including boll weevil and Mediterranean and Mexican fruit flies. *********************************************************************************** NPPC Announces New Staff Members The National Pork Producers Council Monday announced two new staff members. Annemarie Pender is NPPC’s new assistant vice president for marketing and communications. A native of Florida, Pender received a bachelor's degree in history from Christopher Newport University, and a master's in public communications from American University, where she taught strategic communications for several years. Before joining NPPC, Pender was vice president of communications for Autos Drive America, where she played a key role in launching the newly created association and led the transformation of its brand. NPPC also recently hired Chase Adams as manager of congressional relations. Prior to joining NPPC, Adams was senior policy and information director for the American Sheep Industry Association and from October 2012 to November 2016 was director of communications for the National Cattlemen’s Beef Association. He began his career in agriculture as farm director for radio station KBHB in Sturgis, South Dakota, and also practiced law for several years. *********************************************************************************** AFT Awards over $1 million from the Brighter Future Fund to Farmers American Farmland Trust Monday announced that over 200 farmers would be receiving grants of up to $5,000 each through the Brighter Future Fund, and its regional subsidiaries. The grants will be used to help improve farm viability, enable farmers to access, transfer or permanently protect farmland or adopt regenerative agricultural practices. In total, over $1 million will be awarded to farmers located across 44 states and the territory of Puerto Rico. Ashley Brucker of American Farmland Trust says, "These grants are going to improve the lives of farmers across America." Since 2020, AFT has provided, in total, approximately $3.5 million in grants directly to more than 2,000 farmers across the nation for pandemic relief, increased resilience, land access and enhanced viability. The Brighter Future Fund helps farmers launch, grow and sustain farms in the face of forces impacting the food and agricultural system, including the COVID-19 pandemic, changing markets, severe weather and climate change. *********************************************************************************** Weekly Fuel Prices Decline Again Fuel prices declined again last week as COVID cases surged in China, and President Biden announced that the U.S. would release 180 million barrels from the Strategic Petroleum Reserve. The nation’s average gas price fell 5.4 cents to $4.17 per gallon, according to GasBuddy, while diesel prices fell 3.7 cents to $5.08 per gallon. Still, the national average gas price is up 25.5 cents from a month ago and $1.31 per gallon higher than a year ago. GasBuddy’s Patrick De Haan says, “So long as oil prices remain under $100 per barrel and there’s no escalations in Russia’s war on Ukraine, we may be poised to see gas prices decline again this week.” With President Biden’s announcement that the nation would release 180 million barrels of crude oil last week, the price of oil fell under $100 in the second half of the week. In addition, a jump in Covid cases in China sparked renewed concerns about demand destruction.
| Rural Advocate News | Tuesday April 5, 2022 |
Tuesday Watch List Markets The U.S. Census Bureau will release the international trade deficit for February at 7:30 a.m. CDT, supplying data on ag exports which USDA will post on its FAS web site later Tuesday morning. Traders will continue to monitor the latest weather forecasts and any news regarding Ukraine. Weather A system that formed in Oklahoma and Texas on Monday will race across the Southeast Tuesday. The system is likely to bring moderate to heavy rainfall along with chances for severe weather. A second system is moving into the Plains with scattered showers for the Central and Northern Plains into the Midwest. Some stronger thunderstorms may be possible in Missouri later in the day while precipitation will be a mix of rain and snow across the north. Strong winds up and down the Plains due to the system could be extreme in some cases, causing widespread risks for fires.
| Rural Advocate News | Monday April 4, 2022 |
Senate Passes Ocean Shipping Reform Bill The Senate passed the Ocean Shipping Reform Act last week. The reform bill would make it more difficult for ocean carriers to refuse to load American goods that are ready to get shipped from U.S. ports. The legislation is a federal response to congested ports. Some shipping lines find it more profitable to haul empty shipping containers back to Asia than carry loaded containers, which makes it difficult for exporters to ship U.S. commodities to overseas customers. The Senate bill would require carriers to prove they’re being reasonable when they levy late fees for cargo. It would also prohibit those carriers from unreasonably refusing to load cargo at U.S. ports. The Federal Maritime Commission will also get the authority needed to launch an investigation into a carrier’s potentially questionable business practices. “Passing this bill means we’re one step closer to leveling the playing field for U.S. manufacturers and consumers,” says Minnesota’s Amy Klobuchar. *********************************************************************************** Biden Releasing Petroleum From Reserve, Ethanol Not Happy Farm and renewable fuel supporters weren’t happy that the Biden administration is allowing the release of petroleum from the strategic oil reserve. The Hagstrom Report says the White House is making the move in response to high gasoline prices. Ken Colombini, President and CEO of the Renewable Fuels Association, says it’s baffling to his organization that the president continues to bypass ethanol. “it’s the most readily-available, lowest-cost, and lowest-carbon option for extending the nation’s fuel supply,” Colombini says. “Rather than draining the strategic reserve and scolding oil producers for not increasing production, it’s a better idea to empower farmers and ethanol producers.” The RFA also points out that ethanol is selling for one dollar per gallon less than gasoline, and the country is sitting on record ethanol inventories and spare capacity. “Simple administrative actions would immediately reduce pump prices without harming our environment’s health,” Colombini adds. “Let us help address the crisis.” *********************************************************************************** National Sorghum Producers Accepting Director Applications The National Sorghum Producers are now accepting applications for five positions on the 2022 board of directors. “We need strong producer leadership to help move forward the sorghum industry and our legislative and regulatory policies that are important to sorghum farmers,” says NSP CEO Tim Lust. “Our farmer-led board of directors bring the commitment and dedication needed to ensure NSP maintains first-rate representation in Washington, D.C., not only for U.S. sorghum farmers but the industry as a whole.” NSP board members lead efforts to create positive change for sorghum farmers through effective policy and relationships and hold a vision to promote, advocate for, and defend the sorghum industry. Qualified candidates must be a current NSP member and have a passion for representing sorghum farmers. No previous board experience is necessary, just a desire to improve the sorghum industry. The deadline is April 4, and for more information, go to SorghumGrowers.com/leadership. *********************************************************************************** USDA Providing Help to Livestock Producers Hit by Drought, Wildfire The USDA says ranchers who have approved applications through the 2021 Livestock Forage Disaster Program for forage losses due to severe drought or wildfire in 2021 will now get additional assistance. Those producers will soon begin to receive emergency relief payments from an additional $670 million offsetting increases in supplemental feed costs in 2021 through the Farm Service Agency’s new Emergency Livestock Relief Aid Program. “Producers of grazing livestock experienced catastrophic losses of available forage as well as higher costs for supplemental feed in 2021,” says Ag Secretary Tom Vilsack. “In order to deliver much-needed assistance as efficiently as possible, phase one of the ELRP will use certain data from the Livestock Forage Disaster Program, allowing USDA to distribute payments within days to livestock producers.” National Cattlemen’s Beef Association’s Executive Director of Government Affairs Allison Rivera says her group appreciates how the Farm Service Agency listened to producers suffering through years of drought and skyrocketing input costs. *********************************************************************************** Market Report Shows Lamb Holding Ground with U.S. Consumers The U.S. Quarterly Lamb Retail Sales Report for the fourth quarter of 2021 shows lamb performed better last year than it did in 2020. Lamb has seen tremendous retail sales growth during the past two years. Lamb and exotics were the only meat categories to grow volume last year compared to 2020. Compared to 2019, a more typical year before COVID-19 rather than 2020, volume sales of lamb grew 19 percent in 2021. Dollar sales increased 9.6 percent in 2021. While inflation had an impact, retailers still sold more lamb with volume sales increasing by 1.4 percent compared to 2020. The average price per pound for lamb rose by 8.2 percent, from $8.25 a pound to $8.92 a pound in last year. Sales were exceptionally strong during the traditional peak time of year for lamb, which is Easter and Christmas. Ribeye cuts took over the top spot in sales, surpassing loins by $1 million last year. *********************************************************************************** CoBank: Easter Egg Supplies Likely Short Recent outbreaks of Highly Pathogenic Avian Influenza are adding strain to the egg supply chains across the country, which still haven’t fully recovered from COVID-19. While egg production stabilized in recent months, it’s still well below pre-COVID levels. CoBank says that means egg availability could be limited leading into Easter. “U.S. egg producers have been hard-pressed to align supplies with market demand over the last couple of years,” says Brian Earnest, lead animal protein economist with CoBank. “The layer flock typically expands ahead of the surge in demand for Easter and contracts during the summer months.” However, recent HPAI losses have combined with high feed cost and other challenges to severely flock sizes. CoBank says at least 11 million layers have been lost in recent weeks. The USDA estimates about five days of U.S. egg inventory is currently on hand, which is tight but not alarmingly tight supplies. Egg prices will likely rise around Easter.
| Rural Advocate News | Monday April 4, 2022 |
Monday Watch List Markets Traders will return from the weekend checking the latest weather forecasts and any news regarding Ukraine. At 9 a.m. CDT there is a report on U.S. factory orders from February, followed by USDA weekly export inspections at 10 a.m. USDA's first Crop Progress report of 2022 will be released Monday at 3 p.m. and will show a national update of winter wheat crop ratings. Weather A weak frontal boundary has moved into the Southern Plains with scattered showers from the Midwest to Oklahoma early Monday. A low pressure center will develop along the front near Texas late in the day, with strong thunderstorms developing there and pushing eastward overnight. Thunderstorms could be strong to severe as this system continues eastward through Tuesday.
| Rural Advocate News | Friday April 1, 2022 |
Prospective Planting Report Shows Less Corn, More Soybeans The USDA released its Prospective Plantings and Grain Stocks Reports. The agency says farmers intend to plant 89.5 million acres, down four percent or 3.87 million acres from last year. Soybean planted area is estimated at a record 91 million acres, four percent higher than in 2021. The all-wheat planted area this year will be 47.4 million acres, one percent higher than last year. If realized, this would be the fifth-lowest all-wheat planted area since records began in 1919. The all-cotton planted area will be 12.2 million acres, up nine percent from last year. Corn stocks in all positions on March 1 totaled 7.875 billion bushels, two percent higher than March 1, 2021. Soybeans in all positions on March 1 totaled 1.93 billion bushels, 24 percent higher than the same time last year. All wheat in stored positions totaled 1.02 billion bushels, down 22 percent from last year. *********************************************************************************** U.S. Considering More Ethanol in Gasoline Reuters says the White House is considering the possibility of removing restrictions on summer sales of higher ethanol blends as a way to help lower the cost of fuel for American drivers. Three sources close to the discussion told Reuters that President Biden is looking at ways to bring down the soaring cost of gasoline, which recently hit record highs. Adding more ethanol to gasoline blends could potentially bring down prices at the nation’s pumps because ethanol is currently cheaper than regular gasoline blends. The Environmental Protection Agency says it won’t comment on the possibility of the move but did say it was considering a range of options. A bipartisan group of farm-state lawmakers recently pushed the White House to lift the summertime ban. Chuck Grassley of Iowa and Dick Durbin from Illinois, two of the biggest corn-producing states, recently sent a letter to Biden asking him to allow the summertime sale of E15. *********************************************************************************** Drought Monitor Shows Improvement in Midwest, South Heavy rains fell across parts of the Midwest and South, leading to broad areas of drought improvement in those regions. Above-normal precipitation combined with below-normal temperatures to make improvements across much of the Midwest, which hadn’t gotten enough moisture recently to improve on deficits that were building since last spring. Virtually all short-term Midwest drought has been eliminated. Drought worsened in the South, including western and southern Texas and the Oklahoma Panhandle. Above-normal temps, below-normal precipitation, and high winds made things worse in places like southern Louisiana. Improvements were made in east Texas, Southern Arkansas, northern Louisiana, and Mississippi. Much of the High Plains stayed dry last week, resulting in deteriorating drought conditions across parts of the Dakotas and Nebraska. Soil moisture is very low, stream flows are dropping, and state reports show that stock ponds in the High Plains are drying up. Rains in the Western U.S. weren’t enough to relieve drought conditions. *********************************************************************************** New Product May Help Mitigate High Cost of Fertilizer Biotechnology company Symborg says Corteva Agriscience is the exclusive distributor of a new nitrogen-fixation product for specialty crop growers and row crop farmers. Corteva will distribute Symborg’s unique endophytic bacterium under the names BlueN® and Utrisha® N nutrient-efficiency optimizer. By fixing nitrogen from the air and converting it for plants, the technology provides a sustainable, alternative source of nitrogen that reduces dependency on nitrogen uptake from the soil and ensures the plant has access to nitrogen all season long. The new nitrogen management solution helps farmers and growers maximize yield potential for a broad range of crops like fruits, vegetables, tree nuts, field and row crops, sugarcane, and many others. Corteva says the nitrogen nutrient efficiency optimizer emphasizes the company’s commitment to providing farmers with sustainable solutions that complement their traditional crop protection solutions. It’s also an innovative resource for farmers to help mitigate high fertilizer costs and market availability. *********************************************************************************** Alltech Finding Mycotoxin in 2021 Forages Alltech’s 2021 U.S. Harvest Analysis shows that the mycotoxin risk for forage harvested in 2021 was much higher than the previous year. As dairy producers break open their forage bunks and take 2021 corn out of their silos, the mycotoxin risk is amplified in the volume of total mixed rations (TMR) getting tested in Alltech laboratories. Of the almost 140 TMR samples that Alltech has tested since the start of January, 100 percent contain mycotoxins. The average number of mycotoxins in each sample is 7.5. Alltech team members are working with dairy producers on-farm and seeing mycotoxins impact factors such as dry matter intake, milk production, digestion, reproduction, gut health, and immune response. “High levels of multiple mycotoxins are causing significant issues with health and performance on-farm,” says Dr. Max Hawkins, a technical expert with Alltech’s Mycotoxin Management team. “Unfortunately, it’s not a problem that’s likely to disappear anytime soon.” *********************************************************************************** Trade Agenda Must Include Indo-Pacific Agreement The American Farm Bureau is calling on the Biden administration to use the proposed Indo-Pacific Economic Framework to grow American agriculture exports to the region. The organization says America’s farmers and ranchers rely on export markets for more than 20 percent of agricultural production. While the IPEF is a strong start toward improving relationships and reaching new agreements with the region’s countries, it should also include a strategy of creating binding commitments and improving market access through reduced tariffs. “Trade is critically important to the current prosperity of U.S. farmers and ranchers,” says AFB President Zippy Duvall. “We need a continuing focus by the administration on removing trade barriers to our agricultural products and expanding market access for American goods throughout the world, including the Indo-Pacific region.” He also says that American agriculture depends on growing and stable export markets for the success of their businesses. Expanding trade opportunities is critical to continued success.
| Rural Advocate News | Friday April 1, 2022 |
Friday Watch List Markets The U.S. Labor Department will release nonfarm payrolls and the unemployment rate for March at 7:30 a.m. CDT Friday. The Institute of Supply Management's U.S. index of manufacturing is due out at 9 a.m. CDT. Traders will continue to keep an eye on the latest weather forecasts and any news regarding Ukraine. Weather A weak system will move out of the Rockies and through the Plains on Friday with some splotchy areas of light to moderate showers. Additional light showers will spin out of the eastern Midwest this morning. Cold temperatures behind the departing system off the East Coast is leading to some frosty conditions this morning in the Delta and Saturday morning in the Tennessee Valley, but is unlikely to have any significant impact on developing wheat.
| Rural Advocate News | Thursday March 31, 2022 |
United States Hog Inventory Down 2% As of March 1, there were 72.2 million hogs and pigs on U.S. farms, down two percent from March 2021 and down three percent from December 2021, according to the Quarterly Hogs and Pigs report. USDA’s National Agricultural Statistics Service released the report Wednesday. The report found that of the 72.2 million hogs and pigs, 66.1 million were market hogs, while 6.1 million were kept for breeding. Between December 2021 and February 2022, 31.7 million pigs were weaned on U.S. farms, down one percent from the same period one year earlier. For the quarter, U.S. hog and pig producers weaned an average of 10.95 pigs per litter. U.S. hog producers intend to have 2.99 million sows farrow between March and May 2022, and 3.03 million sows farrow between June and August 2022. Iowa hog producers accounted for the largest inventory among the states at 23.0 million head, and Minnesota had the second-largest inventory at 8.60 million head. *********************************************************************************** Lawmakers: New Legislation to Hold China Accountable, Level Playing Field Farm state lawmakers Wednesday introduced the China Trade Cheating Restitution Act. Senate Democrat Jon Tester joined Republican Bill Cassidy, Chuck Grassley and John Thune to introduce the bill they say would level the playing field for U.S. farmers. The bill would ensure that the agricultural sectors most affected by China’s evasion on anti-dumping duties receive an estimated $38.5 million in accrued delinquency interest on duties wrongfully withheld by Customs and Border Patrol from 2000-2014. For nearly two decades, Chinese producers have exported honey, fresh garlic, crawfish, and mushrooms to the U.S. at a price below the cost of production to purposefully increase their market share– a practice called "dumping." The United States placed anti-dumping duties on Chinese producers in 2001 to protect domestic producers and condemn China's unfair actions. The bill would require CBP to distribute an estimated $38.5 million in accrued delinquency interest on the anti-dumping duties that CBP collected and wrongfully withheld. *********************************************************************************** EPA Expands Use of Enlist Products The Environmental Protection Agency this week approved the use of Enlist One and Enlist Duo in 134 additional counties. Enlist One and Enlist Duo is approved in all counties of Arkansas, Kansas, Minnesota, Missouri, Nebraska, Ohio, Oklahoma, and South Dakota, and six counties in Texas. A coalition of farm and commodity groups welcomed the EPA action. American Soybean Association President Brad Doyle says, “We appreciate EPA hearing our concerns and working to quickly restore access in many counties where science and data support doing so.” In January, EPA issued new seven-year registrations for over-the-top use of herbicides Enlist and Enlist Duo on herbicide-tolerant corn, cotton, and soybeans. While the new registrations were welcome and worked for many growers across the country, producers in 217 counties were impacted by county-level bans. Grower groups have urged EPA to review additional data that may allow for lifting county-level bans and view the announcement this week as a significant step toward that outcome. *********************************************************************************** Soy Checkoff Releases 2021 Sustainability Overview Report The soy checkoff released its inaugural U.S. Soy Sustainability Overview which outlines key environmental achievements made by soybean farmers. Developed by the soy checkoff, the report details the modern practices and advanced technologies deployed by farmers in recent years to conserve land, water, energy and other natural resources. The report shows that Between 1980 and 2020, conservation efforts by U.S. soybean farmers have improved land use efficiency by 48 percent per bushel, irrigation water use efficiency by 60 percent per bushel, and energy use efficiency by 46 percent per bushel. Growers also improvised greenhouse gas emissions efficiency by 43 percent per bushel, soil conservation by 34 percent per acre and soy production by 130 percent, using roughly the same amount of land. USB CEO Polly Ruhland says, “Our soybean farmers are committed to sharing the progress we have made and how we’re looking ahead to contribute in solving some of society’s biggest challenges, such as food security and sustainable energy.” *********************************************************************************** Large Dairy Operations Grow Faster than Small Operations New data from USDA’s Economic Research Service shows the U.S. dairy sector has experienced a gradual shift in milk production toward larger dairy operations. The research indicates that the shift in production from small dairy herd-size farms to large dairy herd-size farms mirrors total factor productivity growth across the dairy sector. Total factor productivity, or TFP, is a broad measure of agricultural productivity that compares the total output to the total land, labor, capital, and material inputs used in farm production. Between 2000 and 2016, the largest dairy operations, those with more than 1,000 milk cows, experienced a TFP growth rate of 2.993 percent per year. Meanwhile, TFP growth for the smallest operations, those with fewer than 100 milk cows, increased at an annual rate of 0.639 percent. TFP growth across all operations was primarily driven by technological progress—growth associated with innovations in systems, processes, and techniques that convert inputs into milk output—and environmental effects that positively impacted feed availability. *********************************************************************************** USA Rice Members Deliver to Ukraine Last week, several USA Rice members worked together to deliver a shipment of U.S.-grown rice to help feed the people of Ukraine. The effort came together as the industry saw the urgent need facing Ukrainian people, who are experiencing unprecedented food insecurity as a result of the Russian invasion that began on February 24. Taking advantage of rice already on the European continent, three USA Rice members – Sun Valley Rice, Farmers' Rice Cooperative, and Kennedy Rice Mill –gifted 20 metric tons of U.S. Calrose rice. That rice is now on its way to help feed the Ukrainian people. In a joint statement, the three company leaders say, "We could not in good conscience watch as innocent people were being killed, starved, and driven from their homes.” The U.S. rice companies had rice in position, but destined for other customers. The statement continues, “though it was destined for other customers, we agreed it was urgently needed in Ukraine.”
| Rural Advocate News | Thursday March 31, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, U.S. personal income and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report on natural gas storage is set for 9:30 a.m. At 11 a.m., USDA will release its Prospective Plantings survey and quarterly report of March 1 Grain Stocks. Weather A storm system that has brought heavy precipitation and severe weather this week will push its cold front through the East Coast on Thursday. Severe weather will remain a possibility for the East Coast while showers in the Midwest will wind down throughout the day. Colder air settling in behind the system could lead to some localized frost issues in some areas, though winter wheat is likely not advanced enough to be hurt too badly by the cold.
| Rural Advocate News | Wednesday March 30, 2022 |
Rabo AgriFinance: High Prices Don’t Mean Big Profits High prices for U.S. corn, soybeans and wheat are not expected to be a short-term shock, according to a new RaboResearch report, "The Grain Drain After Ukraine." While the sudden shutdown of trade in the Black Sea region has sent corn and wheat prices to their highest in a decade, the ten-year outlook for all major crops has shifted up to a new price level. The report cites transformative geopolitical changes, continued increases in demand and limited acreage availability as the shift's drivers. RaboResearch expects the U.S. to increase its exports to help fill the demand gap. For the 2022/23 crop marketing year, RaboResearch estimates the average on-farm price, which takes local basis into account, to be $5.77 for corn and $10.50 for wheat when their export sales increase by 200 million bushels. Higher prices, however, do not spell bigger profits. Costs for farm inputs such as seed, fertilizer and land will likely also rise, squeezing farmers' margins over the next decade. *********************************************************************************** USDA Publishes Origin of Livestock Final Rule for Organic Dairy The Department of Agriculture Tuesday published the Origin of Livestock final rule for organic dairy. USDA says the change to the USDA organic regulations will promote a fairer and more competitive market for all organic dairy producers. The rule ensures that certified USDA organic dairy products are produced to the same consistent standard. Agriculture Secretary Tom Vilsack says, "The Origin of Livestock final rule provides clear and uniform standards about how and when livestock may be transitioned to organic dairy production, and how transitioned animals are managed within the organic dairy system." USDA's National Organic Program will oversee the new rule, which in general allows a dairy livestock operation transitioning to organic, or starting a new organic farm, to transition non-organic animals one time. The rule prohibits organic dairies from sourcing any transitioned animals. Once a dairy is certified organic, animals must be managed as organic from the last third of gestation. Small businesses may request variances for specific scenarios. *********************************************************************************** Grassley, Colleagues Unveil Updated Cattle Market Reform Bill Iowa Republican Senator Chuck Grassley this week introduced an updated version of the Cattle Price Discovery and Transparency Act. First introduced in November, Senators Deb Fischer, a Nebraska Republican, Jon Tester, and Montana Democrat, and Ron Wyden, an Oregon Democrat, joined Grassley to introduce the update. The updated legislation allows for more regions, five to seven, encompassing the entire continental U.S. and then establishes minimum levels of fed cattle purchases made through approved pricing mechanisms. The update retains the cash trade mandates included in the previous version of the bill. U.S. Cattlemen’s Association President Brooke Miller says, “USCA stands with county, state, and national producer associations across the U.S. in supporting mandatory cash trade minimums.” National Farmers Union President Rob Larew says the legislation "would shed light on the market and bring about greater fairness.” The updated bill also Increases penalties for violations by packers, and requires that livestock mandatory reporting data be made consistently available. *********************************************************************************** Organic Trade Association Announces New CEO & Executive Director The Organic Trade Association Tuesday announced the selection of its next CEO and Executive Director, Tom Chapman. The announcement was made during OTA’s 2022 Organic Week, which Chapman attended. Chapman’s hiring concludes a year-long planned succession process that began in 2021. Chapman will formally assume the position at the association on April 18. Outgoing OTA Executive Director and CEO Laura Batcha says, “I couldn’t imagine a better, more experienced person for this role than Tom.” Chapman is a proactive leader with a deep background in organic that spans the value chain. Over his many years in the industry, Chapman has helped to advance certification and compliance, successfully managed global supply chains and managed multi-million-dollar contracts, and worked closely with diverse brands, growers, and other organic stakeholders. Most recently, Chapman served as Senior Director, Supply Chain at Kinder’s Sauce and Seasoning. Before that, he worked with OTA members Clif Bar and Quality Assurance International. *********************************************************************************** Robb Fraley Joins Harpe Bioherbicide Solutions Board of Directors Harpe Bioherbicide Solutions, Inc. Tuesday announced the appointment of Dr. Robb Fraley to its board of directors. Harpe is a pre-commercial stage agricultural technology company focused on providing natural and sustainable herbicide solutions. Fraley, who, for nearly 40 years, served as Executive Vice President and Chief Technology Officer at Monsanto Company, will help guide Harpe Bioherbicide Solutions as it further develops and strengthens its intellectual property portfolio. In addition to joining the board, Fraley has personally invested in the company. Fraley is widely recognized as a key contributor to the worldwide science and agriculture communities – most notably, for developing the first genetically modified crops as a solution for farmers battling pests and weeds that threatened yields and food production. Through wide spectrum control of broadleaf and grass seeds or weeds, the platform of Harpe products will deliver new opportunities for organic agriculture through a series of all-natural herbicide formulations for pre, post and desiccation use patterns. *********************************************************************************** Ag Groups Release Guide on Virtual Engagement for Women An updated guide offers tips and tools for effective engagement for online education, including hybrid settings for farm and ranch women. American Farmland Trust and Sustainable Agriculture Research and Education announced "Reaching Women in Agriculture: A Guide to Virtual Engagement," Tuesday. The guide was originally developed through a partnership with AFT and the University of Vermont Extension and has recently been updated, enhanced and published by SARE earlier in 2022. The goal is to create a safe space for women to learn from each other and gain confidence, rather than excluding men. The guidance in Reaching Women is born out of AFT’s Women for the Land initiative and the Learning Circle model. Reaching Women incorporates the characteristics of high-quality programs for women in agriculture and the emerging best practices for adapting farmer education and networking events to virtual platforms. Find and print a free copy of the guide online at sare.org.
| Rural Advocate News | Wednesday March 30, 2022 |
Wednesday Watch List Markets The U.S. Commerce Department will update its estimate of U.S. GDP for the fourth quarter of 2021 at 7:30 a.m. CDT. At 9:30 a.m., the U.S. Energy Department will release its weekly inventory report, including ethanol production. At 2 p.m., USDA quarterly Hogs and Pigs report will be issued. Traders will continue to monitor the latest weather forecasts and watch for any news pertaining to Ukraine. Weather A line of thunderstorms developed Tuesday evening across Texas and Oklahoma. The line will continue to move eastward Wednesday, likely strengthening and causing severe wind gusts and embedded tornadoes as it treks eastward. Outside of this thunderstorm risk, background winds will be strong across the South and Plains while a mix of ice and snow falls across the northern Midwest.
| Rural Advocate News | Tuesday March 29, 2022 |
Biden Releases 2023 Budget: USDA Highlights The Biden-Harris Administration Monday submitted to Congress the President’s budget for fiscal year 2023. Agriculture Secretary Tom Vilsack says the budget "provides USDA with the tools needed to support a vibrant, revitalized, and prosperous rural America." The budget proposes $1.1 billion in funding to address climate change across private, working agricultural land. Biden also proposes $1 billion to support agricultural producers and landowners to undertake conservation and climate-smart practices. The budget builds on the $618 million investment to protect and restore watersheds made in the Bipartisan Infrastructure Law by proposing an additional $135 million for these efforts. The budget proposes $111 billion for the Supplemental Nutrition Assistance Program and invests $935 million in rural America. It builds on the $65 billion investment made by the Bipartisan Infrastructure Law to make high-speed internet available to all Americans. The budget includes an additional $133 million over 2022 levels for Reconnect to provide rural residents broadband. Biden's budget also provides more than $10 million for oversight and enforcement of the Packers and Stockyards Act. *********************************************************************************** Supreme Court to Hear NPPC Case Against Prop. 12 The U.S. Supreme Court has agreed to hear a case brought by the National Pork Producers Council and the American Farm Bureau Federation against California’s Proposition 12. The law bans the sale of pork from hogs born to sows that weren’t raised according to the state’s “arbitrary” production standards. NPPC President Terry Wolters says, “We are extremely pleased that the Supreme Court will consider the constitutionality of Proposition 12.” NPPC has waged a legal battle against the ballot initiative since it was approved in November 2018, arguing at the U.S. district and appellate court levels that Prop. 12 violates the Constitution's Commerce Clause, which grants Congress the power to regulate trade among the states and limits the ability of states to regulate commerce outside their borders. The high court is taking up the case on appeal from the U.S. Court of Appeals for the 9th Circuit, which in July upheld a lower court ruling against the NPPC-AFBF lawsuit. *********************************************************************************** U.S. Plant-Based Protein Sales Reach $7.4 Billion New data released by the Plant Based Foods Association and others shows U.S. retail sales of plant-based foods grew 6.2 percent in 2021 over a record year of growth in 2020. The total plant-based market value reached an all-time high of $7.4 billion. Overall, the Plant Based Foods Association says plant-based food retail sales grew three times faster than total food retail sales, with most plant-based categories outpacing their conventional counterparts. Plant-based milk imitation product dollar sales grew four percent and 33 percent in the past three years to reach $2.6 billion. After record growth in years prior, 2021 plant-based meat imitation product dollar sales remain strong, delivering a repeat year of $1.4 billion in sales, and growing 74 percent in the past three years. Plant-based burgers continue to lead the plant-based meat category as the top-selling product type. The fastest-growing plant-based meat product types in 2021 were plant-based meatballs, chicken nuggets, tenders, and cutlets, and deli slices. *********************************************************************************** Restaurant transactions fell 47 percent in April 2020, New data from USDA's Economic Research Service shows restaurant transactions fell 47 percent in 2020, compared to 2019. In March of 2020, the federal government declared a national emergency in response to the Coronavirus pandemic. In response, many state and local governments implemented social distancing measures, stay-at-home orders, and the mandatory closure of businesses in high-risk industries. Restaurants were often included in these mandates, which forced many to close their dining rooms, if not the entire business, sharply reducing restaurant visits across the country. During the first full week after the national emergency declaration, there were 37 percent fewer restaurant transactions than the same week in 2019. The largest year-to-year changes occurred three weeks later, with the 47 percent decline. By the end of the year, weekly transactions remained 11 percent lower than they had been in 2019. USDA’s Economic Research Service released the new data Monday as part of its COVID-19 Working Paper, examining food away from home spending. *********************************************************************************** USDA, Weed Science Society, Presenting Weed Science Webinar Series USDA's Agricultural Research Service and Weed Science Society of America Monday announced the launch of a free webinar series focusing on current research and advancements in managing weeds and invasive plants. By collaborating with WSSA, ARS scientists aim to highlight the important research that has contributed to the development of sustainable practices to control weeds and invasive plants. Stanley Culpepper, WSSA president, says the organization is “excited to host a series of webinars to highlight the contribution of ARS scientists to our discipline." They have scheduled ten webinars from April through June with three themes: tactics, mechanisms and impacts. Presentations will be given by USDA-ARS weed science research experts starting April 5. The webinars will occur every Tuesday from 2-3p.m. ET and include an interactive Q&A session. To attend the webinar, please register in advance. The webinar is open to the public, and WSSA membership is not required. You can register and learn more on the WSSA website, wssa.memberclicks.net. *********************************************************************************** Fuel Prices Stabilize as Oil Prices Show Extreme Volatility After a storm of surging prices followed by a week of decline, the national average is virtually unchanged from a week ago, declining just tenths of a penny to $4.23 per gallon. The national average is up 62.4 cents from a month ago and $1.38 per gallon higher than a year ago. The national average price of diesel has risen 8.2 cents in the last week and stands at $5.12 per gallon. GasBuddy’s Patrick De Hann says, “The decline we’ve seen in average gas prices has been slowing down, as oil prices have held above $100 after declining under that level as recently as a few weeks ago.” De Haan adds, “there’s no telling what’s around the corner, at least for now, as the volatility in oil prices persists.” With an OPEC+ meeting later this week, hopes are high that the group will again boost oil production by the same 400,000-barrel number they’ve agreed to every month since last July.
| Rural Advocate News | Tuesday March 29, 2022 |
Tuesday Watch List Markets The U.S. consumer confidence index is set for Tuesday morning at 9 a.m. CDT. Traders will keep an eye on the latest weather forecasts and any news out of Ukraine or out of China where new cases of COVID-19 are on the rise. Weather A storm system will move out of the Rockies and into the Plains on Tuesday. Scattered showers in the west will spread through the Plains and Midwest throughout the day. Severe storms will be possible from Texas to Iowa with a mix of rain, snow, and potential for a little freezing rain for the Northern Plains and northern Midwest. Winds with the system will also be strong in spots but especially in the drought-stricken west Texas area where heat and winds will combine to further dry soils.
| Rural Advocate News | Monday March 28, 2022 |
U.S., UK Reach New Section 232 Agreement The U.S. and United Kingdom reached a new Section 232 agreement last week regarding steel and aluminum imports from the UK. That’s good news for America’s farmers because the 25 percent retaliatory tariff on U.S. corn was zeroed out, allowing U.S. corn farmers to renew their trading relationship with Britain. “This agreement will provide opportunities to expand free and fair trade and strengthen our relationship with a great ally,” says U.S. Grains Council President and CEO Ryan LeGrand. “This agreement lifts the retaliatory tariffs on more than $500 million of U.S. products, including corn.” USGC also says this is a great opportunity because the UK is the fifth-largest economy but produces less than 60 percent of its food needs. That makes it a potentially lucrative market for U.S. agriculture and feed grains in particular. “This is vital for global economic development and the profitability of U.S. agriculture,” LeGrand adds. The agreement is effective June 1. *********************************************************************************** Canada to Resume Exporting Potatoes into the U.S. The USDA’s Animal and Plant Health Inspection Service says Canada will soon resume exporting table stock potatoes from Prince Edward Island into the contiguous United States. The Hagstrom Report says the National Potato Council is unhappy with the news and worried about potato wart disease spreading from the island into the U.S., where it currently doesn’t exist. An APHIS news release says the agency determined PEI potatoes for consumption only may once again be exported to the U.S. under specified conditions that will pose little risk of introducing potato wart disease into the country. The potato council says, “We are dismayed to learn that USDA is allowing PEI potato shipments into the U.S. to resume before finishing soil tests for the destructive disease.” Ag Secretary Tom Vilsack says the decision is based on sound science, and the agency will put safeguards in place to protect the U.S. potato industry. There is no cure for potato wart disease. *********************************************************************************** Ukraine Farmers Have Planted Over 300,000 Acres of Crops Farmers in Ukraine, a major exporter of grains, have planted the first 150,000 hectares (371,000 acres) of spring crops despite the Russian invasion that will likely cut down on the country’s available sowing area. The country’s deputy ag minister says farmers have planted corn, soybeans, sunflowers, millet, buckwheat, oats, and sugar beets. Reuters says Ukraine’s previous ag minister, who resigned for health reasons, noted that the 2022 spring crop area would likely drop by more than half the levels of 2021. Ukraine expected to plant 15 million hectares before the Russian invasion. The country has already suspended exports of multiple commodities, including rye, oats, buckwheat, millet, sugar, salt, meat, and livestock since the invasion began. Ukraine also implemented export licenses for wheat, corn, and sunflower oil. Officials noted that the Ukraine government is considering canceling export limits for corn and sunflower oil as it has high stocks of both commodities. *********************************************************************************** USDA Releasing More Help to Expand Processing Capacity USDA launched the Meat and Poultry Processing Capacity Technical Assistance Program to assist meat and poultry grant applications and projects funded by grants. Processors and applicants involved with the Meat and Poultry Inspection Readiness Grant Program and the Meat and Poultry Processing Expansion Program can now access the technical assistance. “This is a true partnership to help meat and poultry processors and grant applicants diversify processing ownership throughout the country,” says Ag Secretary Tom Vilsack. “We’re trying to build capacity and increase economic opportunities for small and mid-sized meat and poultry processors and producers around the country.” USDA encourages grant applications that focus on improving meat and poultry slaughter and processing capacity and efficiency. Applications can also focus on developing new and existing markets, increasing capacity and better meeting consumer and producer demand, and help maintain strong inspection and food safety standards. For more information on the assistance and application deadlines, go to grants.gov. *********************************************************************************** Corn Growers Ask Administration for More Homegrown Fuels Corn grower leaders from 19 states combined to send a letter to President Biden asking him to use existing emergency authorities to tap more homegrown fuels like ethanol. The goal is to help stabilize energy markets and lower the price of fuel for consumers. The letter asks the president to prevent consumers from losing the choice of E15, a higher ethanol blend that costs less at the pump and reduces emissions. A 2021 court decision resulting from oil industry efforts to limit the growth of higher ethanol blends ended year-round market access for E15. That ban will begin this summer without action from the administration or Congress. “We urge your administration to act to prevent consumers from losing access to a lower-cost fuel option on June 1,” the letter says. The Corn Growers say increasing the use of lower-cost and lower-emission E15 could easily replace oil imports from Russia. *********************************************************************************** Improving Child Nutrition Through Dairy The National Milk Producers Federation and the International Dairy Foods Associated submitted comments to the USDA’s Food and Nutrition Service regarding dairy. The groups want the agency to improve nutrition security by updating school meal nutrition standards to encourage increased dairy consumption. That move would keep nutrition in line with the 2020-2025 Dietary Guidelines for Americans report and with the leading health organizations. In 2020, the federal Dietary Guidelines Advisory Committee report found that more than three-quarters of nine-to-13-year-olds are not meeting the recommended intake of dairy foods. School milk consumption has declined in recent years, particularly after whole milk and low-fat flavored milk options got removed from school meals ten years ago. “USDA can begin to reverse the trend through providing certainty for schools offering flavored milks, which provide the same micronutrients as white milk but with a flavor that many children prefer,” the groups say in their comments.
| Rural Advocate News | Monday March 28, 2022 |
Monday Watch List Markets Back from the weekend, traders will look over the latest weather forecasts and check the news out of Ukraine. At 10 a.m. CDT, USDA will release its weekly report of grain export inspections. Weather Cool and dry weather continues across the Midwest Monday, but very warm temperatures continue in the Southern Plains ahead of the next system that is moving into the West. Heat and the development of breezy winds on Tuesday will continue to dry out soils where rains missed last week and create fire risks, especially in west Texas. Scattered showers will spread throughout the western states which are still in deep drought and will spread through the rest of the country later this week.
| Rural Advocate News | Friday March 25, 2022 |
U.S., Japan Reach Agreement on American Beef Import Targets U.S. Trade Representative Katherine Tai and Ag Secretary Tom Vilsack announced that the U.S. and Japan reached an agreement that will help keep more American beef flowing into Japan. The two countries agreed to increase the beef safeguard trigger level under the U.S.-Japan Trade Agreement. The Hagstrom Report says it’s now less likely that U.S. exports will reach the levels that trigger the safeguard provision allowing Japan to raise its tariffs. “This is a win-win for American ranchers and Japanese consumers,” says U.S. Ambassador to Japan Rahm Emanuel. “It ensures stability for U.S. exports in the years ahead and that American beef can compete and win anywhere, anytime.” The agreement includes a new three-trigger mechanism, and all three must get hit for Japan put the safeguard in place and raise the beef tariff. It’s unknown when the agreement goes into effect because the text must get published, and Japan’s parliament must approve the agreement. *********************************************************************************** Cattle Groups Applaud U.S.-Japan Agreement on Beef Imports U.S. cattle groups applauded the announcement of an agreement between the U.S. and Japan on American beef imports. Both countries entered consultations after the beef tariff safeguard got triggered in March 2021. The National Cattlemen’s Beef Association strongly supports efforts to improve the beef tariff safeguard that benefits both Japanese consumers and American cattle producers. "NCBA is encouraged by the announcement," says Kent Bacus, NCBA Senior Director of International Trade and Market Access. "We continue taking necessary steps to secure long-term solutions that enable American cattle producers to continue providing Japanese consumers high-quality beef at competitive prices." If the Japanese parliament approves the agreement, it will add additional triggers before a tariff can get raised on beef. “Reducing tariffs and trade disruptions will further strengthen demand for U.S. beef and generate long-term benefit for cattle producers despite recent challenges,” says Hughes Abell, President of the Texas and Southwestern Cattle Raisers Association. *********************************************************************************** Agribusiness Association of Iowa Picks Northey as CEO Bill Northey, a one-time Secretary of Agriculture for Iowa, is the new CEO of the Agribusiness Association of Iowa. Northey is well-known in state and federal agriculture. His involvement in the Iowa Corn Growers Association and the National Corn Growers Association culminated in his role as president of NCGA. He was elected three times as Iowa Secretary of Agriculture in 2006, 2010, and 2014. Most recently, Northey was Under Secretary for Farm Production and Conservation at the USDA, and his term ended in January of 2021. “I’m excited to get asked to serve AAI as its CEO,” Northey says. “AAI is made up of the leading agricultural companies in Iowa working to promote Iowa’s agricultural opportunities and to support Iowa farmer and agribusiness leadership on improving Iowa’s environment.” Kevin Drury, Chair of AAI’s Board of Directors, says Northey’s passion for agriculture and extensive breadth of experience in agriculture are unparalleled. Northey will replace the retiring Joel Brinkmeyer. *********************************************************************************** Farm Groups Pressure Washington to Open CRP for Planting Several farm groups are pressuring the USDA to allow farmers to plant on Conservation Reserve Program acres. The groups say the move would help to fill the likely lack of corn, wheat, and sunflower oil coming from Ukraine because of the Russian invasion. Yahoo News says seven agriculture lobbying organizations fired off a letter to Ag Secretary Tom Vilsack this week asking the USDA for flexibility for farmers to plant crops on more than four million acres of “prime farmland” that’s currently enrolled in the Farm Service Agency’s CRP without penalty. “It remains to be seen if Ukraine’s farmers will be able to safely plant crops,” the letter says. “Time is of the essence. The planting window in the United States is already open.” The letter was signed by the American Farm Bureau, the National Grain and Feed Association, and several other groups. If the acres get planted, they could yield another 18.7 million tons of grain. *********************************************************************************** Europe Farms can Till Fallow Land The European Commission approved a $550 million package for its farmers, who can now grow food and feed crops on fallowed land without losing they’re “greening payments.” Successful Farming says the move comes in response to Russia’s invasion of Ukraine. EU’s Ag Commissioner says the EU is an “agricultural superpower” that will ensure its farmers have the commission’s full support to respond to the world’s need for food. No immediate estimates were available on how much land would get put into crops under the new European initiative. EU members can use the $550 million (500 million Euros) in agricultural aid to help farmers boost global food security efforts. They can also use the funds to offset potential impacts of higher production costs or trade restrictions EU commodities may face overseas. The EU says Russia is intentionally targeting Ukraine’s food supply “to create hunger and use this as a method of aggression.” *********************************************************************************** Administration Continues Some Tariff Exclusions with China The U.S.-China Business Council applauded the Biden administration for renewing tariff exclusions on 352 categories of Chinese imports. However, the group is disappointed that the administration didn’t approve the exclusions on the full list of 549 categories requested. The council says no reason was given for not approving them all. American companies have submitted 53,000 requests for tariff exclusions but fewer than 7,000 were granted. “We know that the tariffs are a tax on U.S. businesses and consumers, that they haven’t influenced China’s behavior, which was the justification for making the move, and they likely contribute to domestic inflation,” says Craig Allen, president of the USCBC. “They negatively affect U.S. companies of all sizes, especially many of the smaller ones still struggling to survive.” The council points out that then-presidential candidate Joe Biden was correct in calling former President Trump’s tariffs “disastrous,” acknowledging the trade war with China hurt U.S. farmers and families.
| Rural Advocate News | Friday March 25, 2022 |
Friday Watch List Markets The University of Michigan's index of U.S. consumer sentiment is due out at 9 a.m. CDT Friday, the only significant report on the schedule until USDA's cattle on-feed report at 2 p.m. Traders continue to monitor the latest weather forecasts and events in Ukraine. Weather A strong cold front moving into the Upper Midwest will continue southeastward on Friday. Showers are very isolated with the system, but much colder air will fill in behind it later in the day and over the weekend. Breezy winds are accompanying the front.
| Rural Advocate News | Thursday March 24, 2022 |
University of Missouri Releases U.S. Agricultural Market Outlook The University of Missouri Food and Agricultural Policy Institute Wednesday released its Agricultural Markets Outlook. In recent years, unexpected events have caused great uncertainty and volatility in agricultural markets. Trade disputes, the COVID-19 pandemic and now the war in Ukraine have added to the natural uncertainty caused by weather and other factors. The report summarizes baseline projections for agricultural and biofuel markets prepared using market information available in January 2022. Major crop prices have been pushed higher by the global economic recovery, increased demand from China, some weather-induced reductions in crop supplies, and the war in Ukraine. Based on information available in January 2022, the projection was for lower prices for most crops in the 2022/23 marketing year. A weather-reduced soybean crop in South America and the war in Ukraine have both pushed oilseed and grain prices higher, at least in the near term. Projected cattle and milk prices increase sharply in 2022, and prices for hogs and poultry remain well above the 2020 pandemic levels. *********************************************************************************** Canadian Pacific Railway and Union Reach Agreement, Return to Work Canadian Pacific Railway this week announced an agreement with the Teamsters Canada Rail Conference - Train and Engine Negotiating Committee to enter into a binding arbitration. The move ended a work stoppage. The work stoppage began Saturday and ended Tuesday afternoon. In the announcement, Canadian Pacific said it will immediately begin working with customers to resume normal train operations across Canada as soon as possible. The union represents approximately 3,000 locomotive engineers, conductors, train and yard workers across Canada. The Western Grain Elevator Association in Canada had called on the two sides to reach an agreement and end the work stoppage quickly. Rail service is essential to get grain off the Prairies to customers and ports across North America and globally. The association says serious challenges with rail service have already resulted in irreparable damage to Canada's reputation with its customers, and are adding to inflationary pressures on food prices abroad. *********************************************************************************** Brazil’s Suspension of Ethanol Tariff Welcomed as Opportunity Brazil has temporarily lifted its 18 percent tariff on all U.S. ethanol as of Wednesday, March 23 and running through the end of the year to decrease inflationary pressures. Ryan LeGrand, President and CEO of the U.S. Grains Council; Emily Skor, CEO of Growth Energy; and Geoff Cooper, President and CEO of the Renewable Fuels Association, released a joint statement regarding the tariff. The leaders say, “We are pleased to see the temporary elimination of the 18 percent tariff, which should improve access for Brazil’s ethanol consumers as well as help meet its own decarbonization goals.” Brazil sources an estimated 60 percent of its ethanol imports from the United States. World-Grain reports most cars in the country are flex-fuel, which means they can either use gasoline or hydrated ethanol. Brazil also has a mandatory blend of 25 percent to 27 percent anhydrous ethanol in gasoline. *********************************************************************************** Growth Energy Ad Campaign Presses E15 Fix to Deliver Relief at the Pump Growth Energy Wednesday launched a new ad campaign calling on President Biden to direct his administration to lift restrictions on the year-round sale of E15. Growth Energy says the action would boost energy security and combat the surge in fuel costs accelerated by the conflict in Ukraine. The campaign will air on FOX, MSNBC, and CNN in the Washington, D.C. area. It will run until June 1, when many retailers will be forced to pull E15 from the market due to oil companies’ successful challenge in court to eliminate this fuel choice. Growth Energy CEO Emily Skor says, “The White House says all options are on the table to ease surging gas prices, and E15 is a common-sense solution that can deliver immediate relief at the pump.” In some markets, E15 is already saving drivers 50 to 60 cents per gallon, but that option could vanish on June 1 unless the Biden EPA takes swift action, according to Growth Energy. *********************************************************************************** NMPF, USDEC Commend Congressional Progress on Ocean Shipping Reform Act The National Milk Producers Federation and the U.S. Dairy Export Council lauded passage by the Senate Commerce Committee of the Ocean Shipping Reform Act. The approval Tuesday establishes Senate committee support for action to address shipping supply chain challenges as Congress prepares to begin conference procedures on the Senate-passed U.S. Innovation & Competition Act and the House-passed America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act in the coming weeks. Jim Mulhern, President and CEO of NMPF, says, “Export supply chain issues continue to pose immense challenges to dairy exporters, which is why this legislation remains so critical as part of a broad-based approach to tackling those problems.” In the House, Representative Dusty Johnson, a South Dakota Republican, says, “Getting this bill across the finish line and signed by the President is crucial to begin easing the costly problems created by foreign carriers’ unfair shipping practices. *********************************************************************************** Value of U.S. Dairy Exports to Canada Grew by Nearly 50% Over a Decade New Data from USDA’s Economic Research Service shows total dairy exports from the United States to Canada, adjusted for inflation, rose 48 percent from $466.4 million in 2010 to $691.5 million in 2021. Canada is an important market for U.S. dairy products, second only to Mexico. Canada’s proximity to the United States favors imports such as fluid milk, cheese, and infant formula, among others. Supplemental imports of fluid milk, butter, and butterfat in addition to cheese and cream from the United States often meet the shortfall in Canada’s production. By value, infant formula has been the top U.S. dairy product exported to Canada, accounting for $151.3 million in 2021 and representing 22 percent of the total. Coming in second, the combined export value of fluid milk, cream, and milk-based drinks reached $128.5 million in 2021—an inflation-adjusted increase of $85.2 million from 2010. U.S. exports of cheese to Canada have grown by 12 percent to $68.1 million in 2021.
| Rural Advocate News | Thursday March 24, 2022 |
Thursday Watch List Markets USDA's weekly report of export sales is set for 7:30 a.m. CDT, the same time as weekly jobless claims, U.S. durable goods orders for February and an update of the U.S. Drought Monitor. At 9:30 a.m., the Energy Department reports on natural gas storage. Grain prices remain potentially volatile and are sensitive to news out of Ukraine. Weather A system that has been affecting the country over the last several days will slowly depart the country on Thursday. Behind it, a cold front will move through the Northern Plains later today and tonight, bringing in some colder air. Areas along and east of the Mississippi River continue to deal with flooding and wet soils, which will hamper fieldwork.
| Rural Advocate News | Wednesday March 23, 2022 |
Farm Groups Release Feeding the Economy Report U.S. food and agriculture groups Tuesday released the sixth annual Feeding the Economy report. The report's findings show that seven percent of the nation's economy and 29 percent of American jobs are linked to the food and agriculture sectors, either directly or indirectly. Amidst the global supply chain and inflation crises, these sectors also exported $182.91 billion worth of goods, helping the U.S. maintain its position as a leading player in global agriculture. In 2021 these sectors contributed a total of $3 trillion to the U.S. economy. The report shows the total food and industry economic impact at $7.43 trillion. John Bode, President & CEO of the Corn Refiners Association, says the report "highlights how food and agriculture overcame pandemic disruptions to continue to serve as a bedrock of the U.S. economy." Other groups involved in the effort include the American Farm Bureau Federation, The Food Industry Association, and the National Restaurant Association. *********************************************************************************** Farm share of U.S. food dollar rose one cent in 2020 The farm share of the food dollar increased one cent in 2020, according to new data from USDA's Economic Research Service. On average, U.S. farmers received 16.0 cents for farm commodity sales from each consumer dollar spent on domestically produced food in 2020, up from a revised 15 cents in 2019. Known as the farm share, the one-cent rise is the largest increase in nearly a decade. On the other hand, the marketing share goes to food-supply-chain industries that move domestically produced food from farms to points of purchase, including costs related to packaging, transporting, processing, and selling to consumers at grocery stores and eating-out places. In the first year of the Coronavirus pandemic, households redirected a substantial amount of their eating-out dollars, or food-away-from-home spending, toward food-at-home markets such as grocery stores. Generally, farmers receive a smaller share from eating-out dollars because a larger portion is spent on preparing and serving meals at restaurants, cafeterias, and other food-service establishments. *********************************************************************************** Ecosystem Services Market Consortium Announces Partnership with SustainCERT Ecosystem Services Market Consortium and SustainCERT announced a new partnership this week. The effort seeks to accelerate the deployment of a digital solution for corporate reporting on the carbon intensity of agriculture commodities. ESMC says the result will unlock scalability and credibility for climate action in agriculture supply chains, such as carbon markets. ESMC and SustainCERT have partnered to accelerate the deployment of SustainCERT’s Scope 3 software and digital verification capabilities for agriculture. ESMC will help pilot test and improve the solution, allowing for better alignment with user needs and civil society quality requirements, including the Greenhouse Gas Protocol. Ecosystem Services Market Consortium is a non-profit collective action program dedicated to scaling quantified and verified sustainable ecosystem services from agriculture. It is a public-private partnership of the agricultural supply chain and value chain – including agricultural producer groups and co-ops, major corporate food and beverage companies, agribusiness, conservation NGO's, ag-tech companies, land grant universities, and others. *********************************************************************************** Deere Expands Access to Self-Repair Resources John Deere announced this week it will enhance the capabilities of existing diagnostic tools and expand their availability. In 2023, the company will roll out an enhanced customer solution that includes a mobile device interface, and the ability to download secure software updates directly to embedded controllers on select John Deere equipment with 4G connections. Luke Gakstatter of Deere says, "We recognize our customers' desire for more autonomy in managing their equipment." In addition, John Deere announced that coming this May it will expand its offerings by giving customers and independent repair shops in the U.S. the ability to purchase Customer Service ADVISOR directly through JohnDeereStore.com. However, the United States Public Interest Research Group, which has criticized equipment manufacturers for restricting customer access to resources to repair their machines, called for more. A U.S. PIRG Spokesperson says, "Farmers don’t have time to wait for another half-step, only to learn several years down the line that they are still not allowed to perform critical repairs on their equipment.” *********************************************************************************** Cover Crops Goal to Benefit Pig Farm Sustainability A new partnership between USDA’s Natural Resource Conservation Service and Farmers for Soil Health was awarded a $1 million grant to advance adoption of soil conservation practices on farms. FSH is a farmer-led, farmer-funded initiative that will help producers plant cover crops on 30 million acres of soybeans and corn by 2030 to improve overall soil health. FSH is a joint effort of National Pork Board, National Corn Growers Association and the United Soybean Board. Pork producers can measure their cover crop adoption by using On-Farm Sustainability Reports, which are available at no additional cost to them to help document and improve on-farm sustainability efforts. Steve Rommereim, past president of NPB, says, “Nearly one-half of pork’s environmental footprint comes from the corn and soybeans that are fed to pigs.” Rommereim adds sustainable pork production begins with sustainably grown feed. NPB says the initiative will support the environmental stewardship on row-crop acres, ultimately helping pork producers meet their sustainability goals. *********************************************************************************** Benefits of Early Calving Are Increasing Due to Late Winter Warming A study from USDA's Agricultural Research Service finds on rangelands of the Western U.S., calving in late winter instead of spring maximizes calf growth. The study finds that late winter calving instead of spring supplies high-quality forage when it's most needed. There is high value in utilizing rangelands to lower the cost of beef production. Selecting the right calving time, when calves are born, is one factor ranchers can adjust to affect the efficiency of beef production. However, with climate conditions shifting, the costs and benefits of calving at different times are changing. The research team observed that calves born early March, late winter, averaged about 13 percent heavier at 180 days of age than those born early May, spring. This is because calves born in March are older and larger and can therefore better utilize the high-quality forage that is available in summer, whereas May calves reach 180 days of age in early November, long after forage quality has typically declined.
| Rural Advocate News | Wednesday March 23, 2022 |
Wednesday Watch List Markets A report on February U.S. new home sales is due out at 9 a.m. CDT Wednesday. The Energy Department's weekly energy inventory report follows at 9:30 a.m. and includes ethanol production. Traders will continue to monitor the latest weather forecasts and keep track of events in Ukraine. Weather A storm system has moved into the Midwest on Wednesday. While it has become much weaker than over the last two days, scattered showers will continue in the Midwest with a line of slow-moving thunderstorms working across the Southeast. Those storms could still be severe with a couple of tornadoes and damaging wind gusts. Farther north, there is some potential for severe storms in the eastern Midwest as well as the low pressure center has another burst this afternoon and evening. Hail is the main threat with these storms but a tornado or damaging wind gust cannot be ruled out either.
| Rural Advocate News | Tuesday March 22, 2022 |
America Celebrates National Ag Day Today (Tuesday) is National Ag Day, celebrating American agriculture. In his proclamation of National Ag Day, President Joe Biden writes, "I call upon all Americans to join me in recognizing and reaffirming our commitment to and appreciation” of American agriculture. The Association of Equipment Manufacturers is highlighting the technology and innovation in agriculture on the National Mall, with a half-mile of farm equipment and booths to educate the public and lawmakers. Also, student leaders from FFA, 4-H, Agriculture Future of America, and Minorities in Agriculture, Natural Resources and Related Sciences are sharing information on the critical role agriculture plays in our culture and economy. A National FFA spokesperson says, “National Ag Day gives students from agriculture youth organizations the chance to work together and share the importance of agriculture and agricultural education with our national government leaders.” This year marks the 49th anniversary of National Ag Day, celebrated in classrooms and communities across the country. *********************************************************************************** USDA Urges Communities, Farmers, Ranchers to be Prepared for Severe Weather The Department of Agriculture Monday urged those in the path of the severe weather forecast for the Southeast this week to take steps now to keep their food safe, and for farmers and ranchers to take proactive steps to protect their livestock. The weather system is forecast to bring severe storms, including damaging winds, severe rain, potential flooding, hail and even tornadoes to parts of the Southern Plains and Gulf Coast. Meanwhile, USDA offers several risk management and disaster assistance options to help producers recover after disasters. Farmers who suffer losses and whose crops are covered for the 2021 crop year by the Federal Crop Insurance Program, or the Noninsured Crop Disaster Assistance Program are asked to report crop damage to their crop insurance agent or local FSA office. Livestock and perennial crop producers often have more limited risk management options available, so there are several disaster programs for them. USDA encourages farmers to look for disaster tools, such as the Disaster Assistance Discovery Tool, on farmers.gov. *********************************************************************************** Growth Energy Applauds U.S. House Action to Expand E15 Growth Energy CEO Emily Skor Monday applauded members of the House of Representatives for introducing the Home Front Energy Independence Act. In response to rising gas prices and the global energy crisis due to the war in Ukraine, the legislation would make the sale of E15 year-round permanent, create a tax credit for higher biofuel blends, streamline E15 labeling, provide funding for E15 infrastructure, extend the biodiesel tax credit for three more years, and ban imports of Russian petroleum products. Skor says, “The Home Front Energy Independence Act would boost U.S. energy security by increasing the supply of lower-cost, homegrown biofuels available to drivers.” Iowa Republican Representatives Randy Feenstra and Ashley Hinson were joined by Democrats Cheri Bustos of Illinois and Angie Craig of Minnesota to introduce the bill. The House bill is companion legislation to a Senate bill introduced by Iowa Republican Senator Joni Ernst and Senate Democrat Amy Klobuchar. *********************************************************************************** Smithfield Foods Contributes $2 Million to Ukraine Crisis Relief Efforts Smithfield Foods Monday announced cash and in-kind donations totaling $2 million to crisis relief efforts aiding the citizens of Ukraine and those seeking refuge in surrounding areas. Smithfield will expand ongoing refugee relocation and aid assistance underway through its operations in Central Europe with $250,000 donations to each the Global Red Cross Network, Mercy Chefs, Save the Children and World Central Kitchen. Smithfield President and CEO Shane Smith says, "We are deeply proud of the decisive action our Smithfield Family has taken near the border and are committed to supporting and amplifying their good work." Smithfield's global footprint is comprised of operations in seven countries around the world, including the United States, Hungary, Poland, Romania, Slovakia, the U.K. and Mexico. Since the outset of violence in late February, Smithfield Europe operations have provided dedicated support for Ukrainian team members and refugees. Additionally, Smithfield Europe has engaged in regular donations of shelf-stable and other protein to food banks and temporary shelters across the region. *********************************************************************************** Former U.S. President to Headline Texas & Southwestern Cattle Raisers Association George W. Bush, 43rd President of the United States, is set to headline the 2022 Cattle Raisers Convention & Expo, hosted annually by the Texas & Southwestern Cattle Raisers Association. The event takes place at the Fort Worth Convention Center in downtown Fort Worth on March 25-27. President Bush will be joined by legendary singer/songwriter/actor Red Steagall, who will sit down with him for a special conversation about his time in the White House, the challenges facing our nation in the 21st century, and his current work at the George W. Bush Presidential Center. TSCRA CEO Jason Skaggs says, “He’s spoken all over the world, but on March 26, the 43rd President of the United States will address a group of cattle raisers in Fort Worth, and we couldn’t be more honored.” The event is the largest cattle and ranching industry event in the Southwest, with more than 4,000 attendees expected. Open-to-the-public, more information can be found at cattleraisersconvention.com. *********************************************************************************** Fuel Prices Fall for First Time in 12 Weeks For the first time in twelve weeks, the national average price of gasoline declined, down nine cents from a week ago. The national average gas price Monday was $4.24 a gallon, and the average diesel price fell 10 cents to $5.03 per gallon. The national average gas price is up 71.5 cents from a month ago and $1.37 per gallon higher than a year ago. GasBuddy’s Patrick De Haan says, “While the decline is still subject to changes in global supply and demand, COVID and Russia’s war on Ukraine, we are poised to see additional downdrafts at the pump this week.” However, not everyone will see the relief, as West Coast gas prices keep rising. Oil markets have seen a dramatic rise in volatility due to lower liquidity prompted by exchanges raising margin requirements to ensure liquidity as oil prices trade wildly. U.S. retail gasoline demand saw a rise last week as national weekly gasoline demand rose 2.9 percent from the prior week.
| Rural Advocate News | Tuesday March 22, 2022 |
Tuesday Watch List Markets Traders will check the latest weather forecasts and any news out of Ukraine, pausing at 8 a.m. CDT to see if USDA announces an export sale. There are no official reports lined up for Tuesday. Weather A system will continue to bring moderate to heavy rain from eastern Texas northeast into the Ohio Valley on Tuesday. That will include very good chances for severe weather toward the Gulf of Mexico. A band of more moderate rain mixed with snow continues from west-central Kansas up into the Upper Midwest as well. Along with the precipitation, winds remain elevated in the Plains while temperatures drop below normal.
| Rural Advocate News | Monday March 21, 2022 |
Drought Will Continue in the Western U.S. A severe drought has gripped western parts of the U.S. since the middle of 2020. The National Oceanic and Atmospheric Administration says drought will likely persist or worsen in the spring due to above-normal temperatures and below-normal precipitation. NOAA’s spring outlook says dry conditions will likely heighten the risk of wildfires across the Southwest and Southern Plains and will stress farms across California. The National Drought Mitigation Center says over 60 percent of the continental U.S. is under a minor drought or worse, the widest drought coverage since 2013. NOAA’s Climate Prediction Center says, “Prolonged, persistent drought will continue to impact much of the West, and drought will develop during April through June in the Southwest and the Central and Southern Plains.” Water levels in many western lakes are at record-low levels. But drought conditions are expected to lessen or end in the Upper Midwest and the coastal areas of the Southwest. *********************************************************************************** USDA Announces Partnership with Northwest Seaport Alliance Ag Secretary Tom Vilsack announced plans for improving shipping in the Seattle area. The agency will preposition containers of agricultural goods near port terminals to help improve service for shippers that carry U.S.-grown agricultural commodities. The USDA is partnering with Northwest Seaport Alliance to enhance access to a 49-acre pop-up site to accept either dry agricultural or refrigerated containers for temporary storage at NWSA in Seattle. The goal is to reduce operational hurdles and costs, making it so they can be loaded more quickly onto ships at the export terminals. The alliance includes the marine cargo operations of the ports of Seattle and Tacoma, Washington, which is the fourth-largest container gateway in the U.S. The Northwest Seaport Alliance saw a nearly 30 percent decline in exporting agricultural commodities in the last six months of 2021. The ratio of loaded versus empty container exports shifted to predominantly empty containers since May of last year. *********************************************************************************** Production Costs Outpacing Commodity Prices The cost of growing crops could outpace revenue for many farmers this year, making it more difficult to break even despite rising commodity prices and increasing domestic and global demand. An American Farm Bureau Market Intel Report says that farm production costs are likely to rise six percent in 2022, which follows a 12 percent rise in 2021. This continues a trend stretching back several years, as farmers have seen almost all production expenses rise since 2013. Production cost increases include rising fertilizer, seed, and chemical prices that now make up 17.5 percent of on-farm expenditures; rising fuel and energy prices that are made worse by the Russia-Ukraine conflict; increasing costs of labor for both farmers and agribusinesses; COVID-19 disruptions of labor markets and production. “Right now, there are serious concerns about whether farmers will be able to access the supplies they need to put a crop in the ground,” says AFBF President Zippy Duvall. *********************************************************************************** U.N. Says Ukraine War Impacting World’s Food Security The United Nations says the war in Ukraine is already resulting in higher food prices and a shortage of staple crops in central Asia, the Middle East, and North Africa. The Russian invasion of Ukraine has severely cut down on shipments from the two countries, which combine to ship 25 percent of the world’s wheat exports and 16 percent of global corn exports. Reuters says the surging grain prices are starting to pressure retail food prices in some of the world’s poorest countries. The U.N.’s International Fund for Agricultural Development says, “The conflict in Ukraine is already a tragedy for the world’s poorest people living in rural areas, where we are already seeing price hikes.” Those price hikes are going to drive up the number of hungry people living in poverty, and that could have dire implications for global stability. Wheat prices are close to the levels seen during the last food crisis in 2007 and 2008. *********************************************************************************** USDA Tackling Nutrition Insecurity The U.S. Department of Agriculture is taking specific actions to improve America’s nutrition security. The USDA’s nutrition security efforts build on the work the agency and its partners are doing to improve food security by increasing the Department’s focus on diet-related chronic diseases. Studies show that diet-related diseases are a leading cause of death in the country. “COVID-19 brought food insecurity to the forefront of the national conversation and shined a new light on the devastating toll of chronic disease,” Vilsack says. “As many as two-thirds of COVID hospitalizations in the country are related to diet-related diseases.” The strategies for improving nutrition security include providing nutrition support through all life stages, connecting all Americans with healthy and affordable food sources, developing and enacting nutrition science through partnerships, and prioritizing equity every step of the way. Poor diet increases the risks of heart disease, diabetes, obesity, and more. Modernizing the WIC program is among the agency’s first objectives. *********************************************************************************** Chlorpyrifos Ban Will Stand Agriculture groups had two requests for a stay of the Environmental Protection Agency’s ban on chlorpyrifos turned down by a federal court. DTN says the court will allow the groups’ latest suit against the agency to go forward. Farmers still can’t use the insecticide on food or feed crops because its food residue tolerances got revoked. The leading groups of the ag coalition include the American Soybean Association, American Farm Bureau Federation, American Sugarbeet Growers Association, and the Cherry Marketing Institute. Together with 16 other groups, they say the EPA’s decision to revoke the food tolerances for the insecticide causes major harm to their industries, which use it to control pests like aphids, stink bugs, and more. A coalition statement says, “We are disappointed with the court’s decision to deny the motion to stay the rule while the case is heard and are discussing what will be our next steps in the process.”
| Rural Advocate News | Monday March 21, 2022 |
Monday Watch List Markets Traders will return from the weekend, checking weather forecasts and the latest reports from Ukraine. USDA's weekly report of grain inspections at 10 a.m. CDT is the only official report on Monday's docket. Weather A system will move out of the Rockies and into the Southern Plains Monday. Widespread showers are anticipated for the Central and Southern Plains moving into the Midwest and Delta overnight. This system will bring scattered thunderstorms to the southeastern Plains which could end up being severe, but moderate showers in drought areas of the Plains will provide at least some soil moisture for winter wheat that is coming out of dormancy in drought. The system will not eliminate the drought, however.
| Rural Advocate News | Friday March 18, 2022 |
U.S., Britain to Start Trade Talks Next Week The United States will begin trade talks with the United Kingdom next week in Baltimore, Maryland. Reuters says cementing a trade deal with the U.S. was one of the main goals of the push to get Britain out of the European Union. The two sides say the negotiations will be on March 21 and 22, followed by another meeting in Britain later in the spring. U.S. Trade Rep Katherine Tai says the talks “will explore how the United States and the United Kingdom can collaborate to advance mutual international trade priorities rooted in our shared values while also promoting innovation and inclusive economic growth for workers and businesses on both sides of the Atlantic.” The countries will discuss collaborating on easing supply-chain congestion, decarbonizing their economies, promoting digital trade, and supporting each other’s domestic workforces and labor rights. The UK government says it looks forward to deepening the already-thriving $153 billion relationship. *********************************************************************************** CP Railroad to Lock Out Workers on Sunday Canadian Pacific, one of the largest railroad companies in Canada, will bring operations to a halt this weekend after the company didn’t reach a labor deal with its workers. The company issued a notice to the Teamsters Canada Rail Conference that it will lock out employees early Sunday if the two sides can’t agree to a settlement or binding arbitration. Bloomberg says the two sides are discussing a new agreement but “remain far apart.” A disruption would create even more uncertainty in fertilizer markets just as farmers need nutrients for spring planting. Canada is one of the world’s biggest suppliers of potash that’s used in crop nutrients. Sanctions on Belarus and Russia after the Ukraine invasion have already caused a shortage in supplies and a rapid rise in prices. CP is the primary rail transportation provider for delivering potash mined in Saskatchewan to overseas markets, according to the provincial government. *********************************************************************************** U.S. Ethanol Stocks Hit Pandemic High Numbers America’s inventories of ethanol are at their highest level since the early days of the pandemic. The U.S. hasn’t had this much ethanol on hand since April 2020. In its latest report, the Energy Information Administration says ethanol inventories totaled 25.95 million barrels during the week ending on March 11. Market Watch says that’s up from 25.27 million barrels reported during the prior week. The EIA says inventories of more than 26 million barrels back in April of 2020 were the previous high-water mark. The stockpiles are well above the forecasts of industry analysts surveyed by the Dow Jones during the week. Their forecasts predicted stocks would be between 25.25 to 25.5 million barrels. Meanwhile, daily production only dropped off slightly, averaging 1.026 million barrels a day, down from 1.028 million a day during the prior week. The Midwest, which produces the most barrels of any region in the country, dropped output to 971,000 barrels a day. *********************************************************************************** Prohibited Pork, Poultry Seized at Border Over 120 pounds of prohibited pork and poultry meat were found in a minivan trying to cross the border from Mexico into Texas. The Kansas City Star says federal officials and agricultural specialists at the border seized the prohibited meat at the Laredo (Lah-RAY-dough) Port of Entry. A news release from U.S. Customs and Border Protection says pork and pork products are always banned from entering the U.S. through Mexico, and other meats are either prohibited or restricted. The regulations are in place to make sure that harmful pests or diseases don’t make it into the country through imported food products. Authorities say the driver didn’t declare having any meats when arriving at the border. “This significant seizure shows the importance of CBP’s agricultural mission to prevent the spread of potential animal diseases that could risk public safety and inflict harm on the nation’s agricultural economy,” says Alberto Flores, Director of the Laredo Port. *********************************************************************************** USDA Updates Eligibility for Spot Market Hog Pandemic Program The USDA clarified the definition of a spot market sale and hog eligibility under the Spot Market Hog Pandemic Program. SMHPP is designed to help producers who sold hogs through a spot market sale from April 16, 2020, through September 1, 2020. Hog producers will also now be required to submit documentation to support information provided on their application, including the number of hogs sold through a spot market sale and how the price was determined. The only direct to packer sales eligible for the program are those moved through a negotiated sale. The payments will get calculated by multiplying the number of eligible hogs, not to exceed 10,000 head, by the payment rate of $54. USDA will distribute payments after the application period to help ensure the funding is distributed equitably to all eligible producers. Producers can go to farmers.gov/smhpp for examples of supporting documentation, information on applicant eligibility, and more information on how to apply. *********************************************************************************** Clean Water Act Not Strong Enough A new report from the Environmental Integrity Project calls for eliminating agricultural exemptions for the Clean Water Act. They want the Act fixed because it’s missed the original goal of getting 100 percent of American waters fishable and swimmable by 1983. DTN says farmers and ranchers have had many of their practices exempted from the CWA, basically assessing ag runoff as non-point sources of pollution. “Congress should strengthen the Clean Water Act by closing its loophole for agricultural runoff and other non-point sources of pollution,” the EIP report says, “which are by far the largest sources of impairments in U.S. waterways." The report also says “factory-style animal production” should get regulated like other industries because of its “massive waste disposal problem,” and that government agencies should get more power to enforce total maximum daily loads or TMDLs. The Biden administration is currently rewriting the definitions of the “Waters of the U.S. Rule.”
| Rural Advocate News | Friday March 18, 2022 |
Friday Watch List Markets A report on U.S. existing home sales for February is set for 9 a.m. CDT Friday, the same time as the Conference Board's U.S. index of leading indicators. Traders will check the latest weather forecasts and continue to monitor news from Ukraine. Weather A storm system will continue to move northeastward from the Ozarks up the Ohio River Valley on Friday. A batch of thunderstorms across Mississippi and Alabama will eventually outrun its forcing this afternoon, but another band or isolated showers may form behind this initial band later in the day, bringing risks of severe weather from the Ohio River to the Gulf Coast. Moderate showers will fall north of the severe threat from the Ozarks through the Midwest. Snow will mix in on the northern side of the band with some light accumulations from northeast Kansas through northern Michigan.
| Rural Advocate News | Thursday March 17, 2022 |
FACA Discusses USDA’s Role in Climate Initiatives at House Ag Hearing As the process to write the 2023 farm bill begins, the agriculture committees should address climate policy in a producer-focused way, according to the Food and Agriculture Climate Alliance. Chuck Conner of the National Council of Farmer Cooperatives is co-chair of the alliance. Conner told Congress Wednesday, “We believe that policies should be voluntary, and market- and incentive-based.” The comments were part of the House Agriculture Committee hearing to review the Department of Agriculture program’s role in addressing climate change. Conner noted that FACA released a comprehensive list of recommendations related to agriculture and climate in November 2020. Several of these, he said, should be considered during the farm bill process. Conner also noted that FACA is beginning a process to develop an expanded set of more farm bill focused recommendations in the coming months. FACA represents a diverse group of farm and environmental groups, including the American Farm Bureau Federation and the Environmental Defense Fund. *********************************************************************************** USDA NASS to Livestream Agricultural Data Briefings On March 30, USDA’s National Agricultural Statistics Service will livestream the Secretary of Agriculture’s data report briefing for the first time. This and future Secretary data briefings will stream on NASS’s YouTube channel five minutes after NASS reports are released to the public. The Hogs and Pigs briefing will be live at 3:05 p.m. ET. The next livestream, on March 31, is the Prospective Plantings and Grain Stocks briefing at 12:05 p.m. ET. In April, NASS will livestream the Crop Production briefing. Crop Production briefings will also include presentations of data from the World Agricultural Supply and Demand Estimates report released by the Office of the Chief Economist’s World Agricultural Outlook Board. NASS recently recorded several Secretary briefings to give data users an idea of what to expect from livestreams, they are available on YouTube. Joe Parsons, chair of the Agricultural Statistics Board, says, “by livestreaming our briefings when major reports are released, we can provide information to a wider and more diverse audience than ever before.” *********************************************************************************** Trevino Withdraws from USTR Chief Ag Negotiator Nomination Elaine Trevino, the Biden Administration nominee to serve as Chief Ag Negotiator, will take a non-political appointment in the administration. As a result, the White House withdrew her nomination to the trade post at the U.S. Trade Representative’s Office. Senate Finance Committee Chair Ron Wyden, an Oregon Democrat, says, “I’m glad to see Ms. Trevino will be serving the American people,” adding, “I urge the White House to quickly announce a new nominee.” Farm groups welcomed her nomination last year, noting the work needed in agriculture trade. At the time, American Farm Bureau Federation President Zippy Duvall said, “Opportunities to create new trade agreements with the European Union and Great Britain as well as expanding the China Phase 1 agreement make filling this position with the most qualified person extremely important.” Trevino recently served as President of the Almond Alliance of California, and previously served as Deputy Secretary at the California Department of Food and Agriculture. *********************************************************************************** Report: Organic Grower Challenges and Seed Needs Loom Large The organic industry’s State of Organic Seeds report shows no meaningful improvement in organic producers using more organic seed compared to five years ago. The report, announced this week along with the National Organic Research Agenda, concludes the lack of progress puts at risk the viability of the organic seed industry and the integrity of the organic label. Released by the Organic Farming Research Foundation and Organic Seed Alliance, the reports are published every five years to examine organic farming challenges across the United States. In 2019, the organizations were jointly awarded funding from the USDA’s National Institute of Food and Agriculture's Organic Research and Extension Initiative for the research projects. The organic food market experienced incredible growth in 2020, with sales surpassing $56 billion, a 12 percent increase from 2019. The organic seed market has also grown in recent years due to demand for organic food, as well as a dramatic rise in gardening during the COVID-19 pandemic. *********************************************************************************** EPA Further Restricts Over-the-top Dicamba use in Minnesota and Iowa The Environmental Protection Agency this week announced further label restrictions on over-the-top use of Dicamba in Minnesota and Iowa. The changes, requested by pesticide registrants in consultation with those states, are intended to reduce risks from the use of over-the-top dicamba, an herbicide used to control certain types of broadleaf weeds. The revised labeling prohibits over-the-top dicamba application on dicamba-tolerant crops after June 20 in Iowa, and on dicamba-tolerant crops south of Interstate 94 after June 12 in Minnesota. The cut-off date for land north of Interstate 94 remains June 30. The revisions also prohibit the practice when the air temperature is over 85 degrees at the time of application or if the forecasted high temperature of the nearest available location exceeds 85 degrees in Minnesota. These restrictions are intended to reduce the likelihood of volatility and offsite movement of over-the-top dicamba by avoiding application on days with high temperatures, according to the EPA. *********************************************************************************** Equipment Dealer Groups Agree to Merger The joint membership of four equipment dealer associations voted overwhelmingly in favor of moving forward with a merger to create the new North American Equipment Dealers Association. The organizations include the Midwest-SouthEastern Equipment Dealers Association, the United Equipment Dealers Association, the Western Equipment Dealers Association and the Equipment Dealers Association. The member vote was the final step in the merger process to create the new association of equipment dealers. A spokesperson for the working group overseeing the vote states, “A major reason for proceeding with this merger is our members will benefit from a larger, financially strong association that will provide more services.” The newly formed North American Equipment Dealers Association will continue to represent dealers on a national basis with manufacturer relations and in federal government affairs in Ottawa and Washington, D.C. The organization will also continue to represent dealers in their 24 U.S. state capitals and nine Canadian provinces.
| Rural Advocate News | Thursday March 17, 2022 |
Thursday Watch List Markets Top of the morning, USDA's weekly export sales report will be released Thursday at 7:30 a.m. CDT, along with weekly U.S. jobless claims, February U.S. housing starts and an update of the U.S. Drought Monitor. The Federal Reserve's report on industrial production in February is out at 8:15 a.m., followed by the Energy Department's weekly report of natural gas storage at 9:30 a.m. Traders will be watching for anything new out of Ukraine and will be wearing various shades of green. Weather A system moving out of the Rockies and into the Southern Plains has started to develop some moderate to heavy snow in eastern Colorado on Thursday. Additional showers will develop across the eastern half of the Southern Plains throughout the day. Showers on the northern edge of the system will turn into snow in Kansas while severe weather will be possible across eastern Texas and Oklahoma into Louisiana this evening. West Texas will be mostly bypassed by this system while drought continues in this area and only slight reductions are likely elsewhere.
| Rural Advocate News | Wednesday March 16, 2022 |
Lawmakers Seek Biden Action on Fertilizer Prices Lawmakers are raising their concern to President Joe Biden regarding record increases in fertilizer prices approaching the spring planting season. Senator Bill Hagerty, a Tennessee Republican joined by 18 senate colleagues, penned a letter to President Biden urging the administration to “immediately take all necessary steps to curtail the rising costs impacting American farmers and consumers.” Fertilizer is a primary input and major expense for farmers, and price increases will significantly affect farm profitability and the prices of food and consumer products, the senators wrote. Considering Russia's role as a key producer of fertilizer and necessary inputs of fertilizer, its invasion of Ukraine and sanctions imposed on the country are likely to cause shortages and price increases of fertilizer. The potential disruptions, coupled with skyrocketing energy prices, will harm American farmers, according to the lawmakers. The letter states, "We are therefore urging your administration to review all available options to lower the cost of fertilizer." *********************************************************************************** Study Highlights Benefits of Contract Nature of Chicken Industry The National Chicken Council Tuesday released a study that presents the results of a recent broiler industry survey designed to capture key live chicken production statistics. In addition, the study summarizes several key trends in broiler production efficiency, returns and loan quality data. According to the most recent USDA data available, the $68,455 median income for chicken farmers was significantly higher than both all farm households and all U.S. households. Sixty percent of chicken farmers earned household incomes that exceeded the U.S.-wide median. The top 20 percent of contract chicken farmers earn on average $142,000, significantly higher than the top 20 percent of all farm households. In terms of broiler farm loan performance, data show significantly lower charge off and deficiency percentages for chicken farmers compared to all agricultural loans. In 2021, only six percent of respondent’s farmers left their company, including retirements. Of those, only 0.7 percent of farmers left due to contract termination. *********************************************************************************** Growth Energy Calls on DOE to Set the Record Straight on Anti-Ethanol Study Growth Energy is urging the Department of Energy to address a recent “inaccurate and misleading” study about ethanol that claims to be partially funded by the department. Growth Energy CEO Emily Skor made the request in a letter to DOE Secretary Jennifer Granholm. Growth Energy says the study directly contradicts conclusions from the Department of Energy’s own Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies model, which has been tracking the impacts of corn-ethanol's lifecycle emissions since 1996. The study by University of Wisconsin–Madison researcher Tyler Lark claims carbon emissions from using land to grow corn can negate or even reverse any climate advantages of corn ethanol relative to gasoline. Skor of Growth Energy says, “Failing to address this research’s inconsistencies and departure from mainstream science could have negative consequences in our nation’s quest to decarbonize the transportation sector—both on the ground and in the air.” *********************************************************************************** 2021/22 Sorghum Quality Report Released by U.S. Grains Council The U.S. Grains Council just published its 2021/2022 Sorghum Quality Report. For the third year in a row, U.S. sorghum was, on average, graded above necessary requirements for U.S. No. 1, according to the report. Protein content in sorghum was up eight percent year over year, at 11.3 percent, up slightly from last year’s crop. Paige Stevenson, USGC manager of global trade, says, “In a market environment where protein demand is high, every percentage point counts in animal diets.” The report, funded through the Department of Agriculture’s Foreign Agricultural Service Agricultural Trade Promotion program, provides international customers and others accurate, unbiased information about the 2021 U.S. sorghum crop. To generate the report’s findings, a total of 97 samples were collected from 13 participating elevators located in Texas, Kansas, Nebraska and South Dakota between September 20, 2021, and February 16, 2022. The samples were analyzed by the Amarillo Grain Exchange and the Cereal Quality Lab at Texas A&M University. *********************************************************************************** Bayer Issues Statement on Operations in Ukraine In a statement this week, Bayer says it is supporting colleagues impacted by Russia’s invasion of Ukraine. The company is prioritizing the safety of 700 colleagues in Ukraine and will continue to provide them and their families with financial aid, shelter, and evacuation assistance. Bayer is stopping all non-essential business in Russia and Belarus, while ensuring continued access to health and agriculture products. This includes suspending all advertising and other promotional activities, halting capital investment projects indefinitely, and not pursuing any new business opportunities. However, for essential health and agriculture products, Bayer says, “As a Life Science company, we have an ethical obligation - in every country we operate in.” Withholding essential health and agriculture products from the civilian populations - like cancer or cardiovascular treatments, health products for pregnant women and children, as well as seeds to grow food - would only multiply the war's ongoing toll on human life, according to Bayer. *********************************************************************************** Organic Valley Cooperative Launches Carbon Program Organic Valley cooperative recently announced admissions of reaching carbon neutrality through a new carbon insetting program. The cooperative of small, organic family farms plans to work towards a carbon-neutral food system through a carbon insetting program. The program will incentivize and assist Organic Valley farmers with implementing regenerative, climate-smart farming practices. The CCIP, or CROPP Carbon Insetting Program, is designed to help Organic Valley reach carbon neutrality through real-world, deep emission reductions and carbon sequestration on member farms. This program will help Organic Valley become the first major dairy brand to reduce farm emissions without reliance on carbon offsets. Practices being considered for the 2022 CCIP pilot include tree plantings, improved manure management, renewable energy, energy efficiency, and enhanced grazing and cropland practices. Carbon insetting continues to gain traction among companies seeking an earth-centered approach to supply chains and carbon impact. Organic Valley aims to become the first major dairy brand to achieve carbon-neutral farm emissions without relying on carbon offsets.
| Rural Advocate News | Wednesday March 16, 2022 |
Wednesday Watch List Markets At 7:30 a.m. CDT Wednesday, a report on U.S. retail sales for February will be released, followed by the Energy Department's weekly inventory report at 9:30 a.m. The Federal Reserve will conclude its two-day meeting and is expected to announce an increase in the federal funds target at 1 p.m., followed by a news conference with Chairman Powell. Traders continue to watch for the latest news from Ukraine. Weather An upper-level system will continue to bring scattered showers to the Southeast on Wednesday. Additional showers will continue to fall in the Pacific Northwest as well. But most areas will be mild and dry for the day. Hard red winter wheat continues to wake out of dormancy, but is finding dry soils in the Southern Plains. There is some hope for showers there on Thursday. Wetter soils along and east of the Mississippi River are making it difficult for some producers to get into their fields.
| Rural Advocate News | Tuesday March 15, 2022 |
Strong Momentum Continues for U.S. Beef Exports; Pork Exports Trend Lower Coming off a record-breaking performance in 2021, U.S. beef exports remained red-hot in January, according to the U.S. Meat Export Federation. Pork exports continued to trend lower in January, despite another outstanding month for exports to leading market Mexico. Beef exports totaled 119,066 metric tons, up 13 percent from a year ago, while value soared 57 percent to $1.03 billion. This was the third-highest value total on record – trailing only August and November of last year – and export value per head of fed slaughter set a new record, exceeding $500 for the first time. January pork exports totaled 208,808 metric tons, down 16 percent from a year ago, while export value fell 14 percent to $555.6 million. Exports to Mexico were up 36 percent from a year ago to more than 87,000 metric tons. January exports of U.S. lamb totaled 1,533 mt, up 49 percent from a year ago, while export value climbed 59 percent to $1.9 million. *********************************************************************************** NPB Adjusts Pork Checkoff Rate National Pork Board delegates approved a change in the mandatory Pork Checkoff rate during the Pork Industry Forum last week. The current rate of $0.40 per $100 value per live animal will change to $0.35 per $100 effective January 1, 2023. The change represents a 12.5 percent reduction in the checkoff rate. The resolution – offered initially by Minnesota, Indiana and Ohio, but joined in support by Iowa, Nebraska, Illinois, Montana and South Dakota – passed the delegate body with 94 percent of shares voting in favor. The resolution reflects a recommendation of the Pork Industry Vision Task Force – a group of 19 industry leaders from the National Pork Board, the National Pork Producers Council and various states that reviewed the current structure and resource needs of the U.S. pork industry. The Task Force offered several recommendations to the Pork Act Delegate Body, which came before and were approved by delegates last week. *********************************************************************************** Bill Seeks to Coordinate Federal Programs for Rural Communities Iowa’s Senators, Republicans Chuck Grassley and Joni Ernst, are promoting a bill to streamline federal resources available to rural communities. The legislation would create an Office of Rural Prosperity in the White House to coordinate the federal government’s programs supporting rural communities. Currently, there are more than 400 federal programs dedicated to helping rural communities. 13 different federal agencies have jurisdiction over the various programs, which includes over 50 offices and sub-agencies. The Rural Prosperity Act also requires the office to produce an annual comprehensive strategy for rural economic development, a Rural Prosperity Action Plan. Senator Grassley says, “I frequently hear from Iowans in rural communities who are having trouble navigating federal bureaucracy, making it more difficult to receive the assistance they need,” citing a need for the legislation. Ernst adds the legislation will “make sure we always have a voice and a seat at the decision-making table in our nation’s capital.” *********************************************************************************** Fischbach Introduces Landowner Easement Rights Act Representative Michelle Fischbach recently introduced the Landowner Easement Act. The legislation by the Minnesota Republican would prohibit the Department of the Interior from entering into a conservation easement with a term of more than 50 years. The bill would also give owners of existing easements the option to renegotiate, renew, or buy out the easement. Fischbach says, "This legislation would stop permanent landgrabs while providing a mechanism for landowners to resolve easement disputes." North Dakota Republican Representative Kelly Armstrong joined Fischbach to introduce the legislation. Armstrong adds, "Our legislation will put power back into the hands of farmers and landowners, giving them the ability to renegotiate or buy out U.S. Fish and Wildlife Service easements created before 1977." The Minnesota Corn Growers Association welcomed the legislation, saying the bill protects private property rights by ensuring that government easements are transparent, even-handed, and temporary. *********************************************************************************** Register Open for 2022 Stockmanship & Stewardship Events Registration is open for three Stockmanship & Stewardship regional events from the National Cattlemen's Beef Association. During each event, producers can become BQA certified, network with fellow ranchers, participate in hands-on demonstrations, and learn cutting-edge operation techniques. The first event is planned for May 20-21 at Virginia Tech in Blacksburg, Virginia, the second June 16-18 in Leavenworth, Kansas, and the third August 12-13 at Auburn University in Auburn, Alabama. Stockmanship & Stewardship is a unique experience for cattle producers featuring low-stress cattle handling demonstrations, Beef Quality Assurance educational sessions, facility design sessions and industry updates. The program is sponsored by NCBA, Merck Animal Health, and the Beef Checkoff-funded National Beef Quality Assurance program. For more information about the events and to register, visit StockmanshipAndStewardship.org. Cattle producers attending a Stockmanship & Stewardship event are eligible for reimbursement through the Rancher Resilience Grant. To apply for a grant to cover registration costs and two nights hotel, visit ncba.org. *********************************************************************************** Apply by April 29 for Farm Bureau Ag Innovation Challenge The American Farm Bureau Federation, in partnership with Farm Credit, is seeking entrepreneurs to apply online for the 2023 Farm Bureau Ag Innovation Challenge. Now in its ninth year, the national business competition showcases U.S. startup companies developing innovative solutions to challenges faced by America’s farmers, ranchers and rural communities. Farm Bureau is offering $165,000 in startup funds throughout the course of the competition, which will culminate in the top ten semi-finalists competing in a live pitch competition in front of Farm Bureau members, investors and industry representatives at the AFBF Convention in January 2023 in San Juan, Puerto Rico. AFBF President Zippy Duvall says, “The Ag Innovation Challenge is an outstanding avenue for identifying and supporting startup businesses striving to solve the problems facing rural America.” Applications remain open through April 29, and the ten semi-finalist teams will be announced on September 13. Eligibility guidelines and the competition timeline can be found at fb.org/challenge.
| Rural Advocate News | Tuesday March 15, 2022 |
Tuesday Watch List Markets In addition to checking the latest weather forecasts, traders will watch for any sign of progress for a peace deal between Russia and Ukraine. At 7:30 a.m. CDT, the U.S. Labor Department will release its producer price index for February. The National Oilseeds Processors Association will have its soybean crush estimate for February later Tuesday morning and NASS is set to release its monthly Livestock, Dairy and Poultry outlook at 2 p.m. Weather An upper-level disturbance continues to create showers and thunderstorms near the Gulf Coast Tuesday morning. Moderate to heavy rain and some severe weather will be possible out of this system as it continues to spread eastward throughout the day. Rains will continue to improve conditions for drought scattered about the area. Warmer air will continue to spread across the rest of the country.
| Rural Advocate News | Monday March 14, 2022 |
U.N. Food Agency Says Prices Could Rise 20 Percent The United Nations Food Agency says international food and feed prices could jump by as much as 20 percent because of the war in Ukraine. The Food and Agriculture Organization says that would trigger a jump in global malnourishment. The agency says it’s not a sure thing that Ukraine will be able to harvest any crops if the war drags on, which would also impact the prospects for Russian exports this year. Russia and Ukraine combine to provide 19 percent of the world’s barley supply, 14 percent of the wheat, and four percent of the maize, which Reuters says makes up more than one-third of the global cereal exports. Russia is also a world leader in fertilizer exports. FAO’s Director-General says, “The likely disruptions to agricultural activities of these two major exporters of staple commodities could seriously escalate food insecurity globally.” The food price index already hit a record high in February. *********************************************************************************** More International Trade Missions in 2022 As part of USDA’s commitment to expanding and diversifying global market opportunities for U.S. agriculture, the agency will sponsor an additional four overseas trade missions this year. Ag Secretary Tom Vilsack announced it at Commodity Classic in New Orleans. He recently returned from a trade mission to Saudi Arabia, the agency’s first overseas trip since the start of COVID-19. “Each year, the Foreign Agriculture Service’s international team of marketing and trade experts pinpoint new and growing global markets that offer top-notch prospects for U.S. exports,” Vilsack says. While the final dates are yet to be confirmed, the trade missions will be in London, Manilla, the Philippines, Nairobi, Kenya, and Madrid, Spain. “The events of the last few years have certainly underscored the importance of diversifying our agricultural export markets,” Vilsack adds. Ag exports hit an all-time high in 2021, topping $177 billion. 28 markets around the globe each brought in $1 billion in U.S. exports. *********************************************************************************** USDA Investing in American-Made Fertilizer The USDA announced it will support developing additional fertilizer production in the U.S. to address rising costs and spur competition. The agency will make $250 million available this summer through a new grant program to support independent, innovative, and sustainable American fertilizer production to help supply American farmers. To address growing concerns about competition in the agricultural supply chain, USDA will also launch a public inquiry seeking information regarding seeds and agricultural inputs, fertilizer, and retail markets. “Recent supply chain disruptions from COVID-19 to the war in Ukraine have shown us how important it is to invest in this crucial link in the agricultural supply chain here at home,” says Ag Secretary Tom Vilsack. Fertilizer prices have more than doubled since last year due to many factors. The top producers of the major components in fertilizer include China, Russia, Canada, and Morocco. Belarus also provides a significant share of the world’s potash exports. *********************************************************************************** Cattle Producers Welcome Contract Library Pilot Program The recently-passed Fiscal Year 2022 Omnibus Appropriations Package funds several programs important to cattle producers. It also maintains key provisions that the National Cattlemen’s Beef Association has advocated for, including the Electronic Logging Device Exemption for livestock haulers, important EPA regulatory relief, and an extension of the Livestock Mandatory Reporting Program. The Cattle Contract Library Pilot Program is a critical tool as NCBA works to increase market transparency for cattle producers. NCBA says the pilot program marks a “win” for the U.S. cattle industry as it equips producers with the market data they need to make informed business decisions and capture more value for producing the highest-quality beef in the world. “The program allows USDA to work on the model for a contract library that works for everyone in the supply chain while Congress and industry continue to work on the details of a permanent library,” says NBCA VP of Government Affairs Ethan Lane. *********************************************************************************** Commodity Partnership Sets a Big Goal for Cover Crops More and more customers of American agriculture want to source environmentally sustainable food and ingredients. That means manufacturers have to reevaluate their supply chains. Sustainability and continuous improvement on today’s farms form the foundation for meeting those needs. To make that happen at the farm level, the United Soybean Board, National Corn Growers Association, and the National Pork Board signed a partnership agreement with the USDA’s Natural Resources Conservation Service. That agreement led to a $1 million grant to the new Farmers for Soil Health Initiative. “As front-line environmental stewards, this effort will only increase sustainability advancements that farmers have implemented for generations while increasing carbon storage in soils sequestered by cover crops,” says Ralph Lott, USB Chair. The soil health initiative will use the grant to support farmers as they increase the use of cover crops and other conservation practices in a sustainable energy and protein system that meets the needs of customers. *********************************************************************************** U.S. Ag Tractor Sales Positive Across the Board U.S. ag tractor and combine unit sales returned to positive numbers across all segments. Canada’s harvesters and four-wheel-drive units fell according to the latest data from the Association of Equipment Manufacturers. America’s total farm tractor sales grew 9.2 percent in February compared to 2021, while U.S. self-propelled combine sales for the month inched up 3.1 percent to 200 units sold. The 100+ horsepower two-wheel-drive segment once again led all of the segments with a 27.9 percent jump, followed by the sub-40 horsepower 2WD segment up 8.1 percent. Mid-range tractors between 40 and 100 horsepower climbed 7.1 percent, reversing the previous month’s decline. “This is another positive month for ag tractor and combine sales, up overall in both North American markets,” says Curt Blades, senior vice president of industry sectors and product leadership with AEM. “Strength in the commodity markets is continuing to drive a lot of the sales growth we are seeing.”
| Rural Advocate News | Monday March 14, 2022 |
Monday Watch List Markets Back from the weekend with clocks correctly adjusted, traders will check the latest weather forecasts and any new developments from Ukraine before pausing at 8 a.m. CDT to see if USDA has an export sale announcement. USDA's weekly report of grain export inspections will be released at 10 a.m. Monday is also the final day of trading for March U.S. grain futures. Weather Coming off a very cold weekend, temperatures are quickly flipping to mild and the country will find these milder temperatures through the week as most places will feel like spring has finally arrived and it's here to stay. There will be some showers, however. A weak system will move out of the Rockies and into the Southern Plains on Monday, bringing scattered showers to eastern Oklahoma and Texas into the southern Delta, which may include some severe storms.
| Rural Advocate News | Friday March 11, 2022 |
Lawmakers Ask for Year-Round E15 Sales Senators John Thune of South Dakota, Chuck Grassley of Iowa, Dick Durbin of Illinois, and several colleagues sent a letter to the administration asking them to approve year-round E15 sales. The goal would be to restore American Energy independence. Growth Energy CEO Emily Skor applauded the letter to President Biden. “The message from both sides of the aisle in Congress is clear,” Skor says. “We need more homegrown, low-carbon solutions to address rising gas prices and shield American drivers from the continued volatility in the global oil market.” The lawmakers and Growth Energy both say biofuels are a ready solution to help provide consumers with lower costs at the pump. Renewable Fuels Association CEO Geoff Cooper says American families are experiencing unprecedented pain at the pump. “Ethanol is one dollar per gallon cheaper than gasoline today, meaning higher blends like E15 can immediately help put a lid on surging gas prices,” Cooper says. *********************************************************************************** Clean Fuels Alliance Asks Administration to Support RFS Clean Fuels Alliance sent a letter to President Biden to tell the administration the group is ready to help maintain homegrown fuel supplies, mitigate pain at the pump, and support a clean energy future. The letter asks the administration to get the Renewable Fuel Standard back on track as a key driver of America’s energy independence. “America’s biodiesel, renewable diesel, and sustainable aviation fuel producers are working hard to provide better, cleaner fuels that provide consumers value and extend the diesel fuel supply,” the letter says. The letter requests that the administration quickly finalize the proposed RFS volumes for 2021 and 2022 and drop the proposal to “reset” previously established 2020 volumes. “Since homegrown biodiesel and renewable diesel are direct replacements for foreign oil, a strong RFS is more important today than ever for America’s national security,” says Kurt Kovarik, Vice President of Federal Affairs. “The RFS is a cornerstone of America’s energy independence.” *********************************************************************************** Bill Would Provide Relief on Fertilizer Tariffs Senator Roger Marshall and Representative Tracy Mann introduced the Emergency Relief from Duties Act today. The bill would create emergency waivers for duties levied on fertilizers by the U.S. International Trade Commission. “Fertilizers and other inputs have been at an all-time high, and the war in Ukraine promises to drive up the price of products even more,” says Chris Edgington, President of the National Corn Growers Association. “Fertilizers have become increasingly hard to secure and pay for because of tariffs or the threat of tariffs on imports. That’s why passage of this legislation would come as a welcome relief to farmers across the country.” The bill comes as the U.S. International Trade Commission levied tariffs against imports of phosphate fertilizer at the behest of a U.S. fertilizer company. The bill would make it possible to establish a waiver of countervailing duties or anti-dumping duties for a year if there is an emergency situation. *********************************************************************************** Dierks Inducted Into Pork Industry Hall of Fame Neil Dierks served the U.S. pork industry for 40 years, spending 20 of those years as CEO of the National Pork Producers Council. For his dedication and countless contributions to the industry, Neil Dierks was inducted into the National Pork Industry Hall of Fame at the NPPC’s annual business meeting – National Pork Industry Forum - in Louisville, Kentucky. Dierks retired in December after a total of 31 years with the NPPC. He helped develop the organization that was born after a separation agreement created the National Pork Board. Dierks then became the first CEO of the reconstituted NPPC. After taking over as CEO, he guided NPC’s steady growth for the next two decades, expanding sources of revenue and establishing it as a highly effective and influential national advocacy organization critical to the profitable growth of U.S. pork producers. NPPC President Jen Sorenson says, “Neil is a giant within the U.S. pork industry.” *********************************************************************************** NRCS Says On-Farm Conservation Use Continues Rising A new USDA report shows that farmers are using more no-till practices, crop rotations, more efficient irrigation methods, and advanced technologies over the last decade. The report from the Natural Resources Conservation Service says farmers are making a lot of progress in their voluntary conservation efforts. “The latest report shows that farmers have done an outstanding job over the years of using innovative conservation strategies that help mitigate climate change,” says NRCS chief Terry Cosby. “But we have more work to do.” Among the important findings, farmers are increasingly adopting advanced technology, including enhanced-efficiency fertilizers and variable rate fertilization, to improve efficiency, assist agricultural economies, and benefit the environment. Farmers are increasingly using more efficient conservation tillage systems, especially no-till, which has become the dominant form of tillage in rural America. That helps improve soil health and reduces fuel usage. “Reports like this will help us improve future conservation efforts,” Cosby says. *********************************************************************************** Sheep Industry Report Assesses 2021 The sheep and lamb industry saw prices reach historic levels in 2021. The year of outstanding domestic demand for lamb is summarized in the 2021 Sheep Industry Review. The report is funded by the lamb checkoff and put together by the American Sheep Industry Association. “The pandemic continued to bring uncertainty during 2021, which drove shifts in consumer food consumption and buying patterns,” says ALB Chair Peter Camino. “Per-capita lamb consumption was 1.36 pounds per person last year, the highest level since the early 1990s.” The report notes that gains in lamb consumption have been linked to the year-round availability of more lamb cuts in supermarkets and direct sales as a result of COVID-19. There was price uncertainty in 2021 from price inflation and consumer response to higher prices for meat and other goods. However, feeder and slaughter lamb prices gained more than 40 percent. The wholesale lamb market saw record-high prices.
| Rural Advocate News | Friday March 11, 2022 |
Friday Watch List Markets Traders will be checking the latest forecasts ahead of the weekend, any news about Ukraine and will pause at 8 a.m. CST to see if USDA has an export sale announcement. At 9 a.m., the University of Michigan's index of consumer sentiment will have an early outlook for March, the only report on Friday's docket. Weather An arctic cold front continues its trek southeast through the country on Friday and will make more progress. A band of light snow is falling from West Texas into Michigan, which will move east with the front today. Moist air from the Gulf will be drawn northward and increase precipitation along the front later in the day across the Southeast, which could lead to a round of severe thunderstorms. Cold, arctic air continues to move in behind the front and could cause some frost damage to unprotected wheat.
| Rural Advocate News | Thursday March 10, 2022 |
Senator Asks for Delay in the CRP Sign-Up Deadline The Senate Agriculture Committee’s Ranking Member, John Boozman (BOZE-man) of Arkansas, wrote a letter to Ag Secretary Tom Vilsack asking for a delay in the deadline for farmers to sign up for CRP. With inflation at a 40-year high and global food prices reaching a new record last month, Boozman wants the administration and USDA to look at ways of increasing food production. “To that end, I request that you delay the sign-up deadline for the Conservation Reserve Program until farmers have a better understanding of supply disruptions associated with Russia’s invasion of Ukraine,” Boozman says. “A delay will allow farmers to evaluate whether it’s better to raise and insure a crop or enroll the land in CRP.” Boozman also points out that should the conditions in Ukraine continue to deteriorate, giving livestock producers continued opportunities to graze livestock on CRP ground without penalty should get consideration. The general CRP sign-up deadline is March 11. *********************************************************************************** Time to Unleash Biofuels Gas prices are hitting all-time highs, so Iowa senators Chuck Grassley and Joni Ernst are asking the president to “unleash biofuels” immediately. They want Biden’s support on their bipartisan plan to replace Russian oil with clean-burning, American-made renewable fuels that are available right now. The new bill is called the Home Front Energy Independence Act and would put the ban on Russian oil into law. At the same time, the legislation would open up America’s heartland to more biofuel production. The current excess ethanol capacity domestically is nearly the same as the amount of Russian gas the U.S. had been importing, roughly 83 million barrels versus 87 million barrels. “Ethanol has been selling at around a $1.20 discount to base gasoline,” Grassley says. “Homegrown biofuels is a quick and clean solution for lowering prices at the pump.” The senators say that bolstering production would help the U.S. become energy independent once again. *********************************************************************************** March WASDE Assess Short-Term Impacts of Russia-Ukraine War The March World Ag Supply and Demand Estimates 2021-2022 U.S. wheat supply and demand outlook calls for lower supplies, unchanged domestic use, reduced exports, and higher ending stocks. Wheat exports dropped 10 million bushels, while imports dropped five million bushels from last month, all in Hard Red Winter Wheat. The season-average farm price rose 20 cents a bushel to $7.50. The corn supply and demand outlook is for increased food, seed, and industrial use, larger exports, and smaller stocks. Export projections rose 75 million bushels to 2.5 billion, which reflects an expectation of sharply lower exports from Ukraine. Corn for ethanol use is up 25 million bushels to 5.35 billion. The projected season-average price rose 20 cents to $5.65. Soybeans are looking at higher exports and lower ending stocks compared to last month. Exports rose by 40 million bushels while ending stocks dropped by 40 million bushels to a projected 285 million. The season-average price rose 25 cents to $13.25. *********************************************************************************** Farm Bureau Vice President Retires American Farm Bureau Federation Executive Vice President Dale Moore announced that he plans to retire this year. That brings a career of four decades as an agricultural leader in Washington, D.C., and elsewhere to a close. “Dale has been a tireless advocate on behalf of farmers and ranchers throughout his career,” says Farm Bureau President Zippy Duvall. “He has certainly contributed to the American Farm Bureau’s strength over the last four years as a trusted advisor to me and many state farm bureau presidents and staff.” Moore spent more than 40 years of his professional life championing agriculture through working on Capitol Hill, at USDA, and in the private sector. “He deserves to step back and enjoy time with his family,” Duvall says, “but he will be deeply missed.” Moore agreed to assist Farm Bureau in selecting his successor. “I look forward to his help in positioning Farm Bureau for continued success,” Duvall adds. *********************************************************************************** Federal Committee on Urban Agriculture to Meet The USDA will host the first public meeting of the inaugural Federal Advisory Committee for Urban Agriculture and Innovative Production March 23-25. The Zoom meeting is open to the public, and urban producers are encouraged to attend. “I look forward to working with this new urban agriculture federal advisory committee,” says Ag Secretary Tom Vilsack. “The committee’s valuable insights and expertise will provide critical guidance to help us better serve urban agricultural producers, strengthen local food systems, and increase equity and access to healthy food.” The new federal advisory committee is part of USDA’s efforts to support urban agriculture, creating a network for feedback. Members announced last month include agricultural producers, and representatives from the areas of higher education or extension programs, non-profits, business and economic development, supply chains, and financing. The meeting is on March 23 and 24 from 11 a.m. to 3:30 p.m. Eastern Time. For more information or to register, go to farmers.gov/urban. *********************************************************************************** Ag Stakeholder Responds to Rail Workers’ Strike Vote Roughly 3,000 workers voted overwhelmingly in favor of going on strike over a new collective bargaining agreement. Almost 97 percent of the Canadian Pacific Teamsters voted to strike on March 16. Ag stakeholders like Nutrien are beginning to respond to the threat. “Nutrien relies on rail and a CP Teamsters strike could impact our ability to move potash, nitrogen, and crop inputs to our retail locations across Canada ahead of the upcoming spring application season,” the company says in a statement. “That could potentially reduce crop yields later in the year when the food supply is already stretched and cannot afford further negative impacts at this time.” The company is currently asking Canada’s government to intervene before this event can become another transportation crisis. The Fertilizer Institute mirrored those comments in a letter to the U.S. administration, asking officials to work with Canada on reverting the strike and eliminating the cross-border COVID vaccine requirements.
| Rural Advocate News | Thursday March 10, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CST Thursday, along with weekly U.S. jobless claims, the Labor Department's consumer price index for February and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is due out at 9:30 a.m. The U.S. Treasury Department reports on the federal budget for February at 1 p.m. Weather A strong arctic front continues to trek through the country on Thursday with cold air filtering in behind it. A band of snow from northern Kansas into northwest Missouri will diminish as it moves eastward through the day. Some additional light snow will develop along the front across from northeast New Mexico through southern Michigan tonight.
| Rural Advocate News | Wednesday March 9, 2022 |
U.S./UK Ban Imports of Russian Oil President Joe Biden announced on Tuesday a U.S. ban on Russian oil and other energy imports. The goal of the move is to increase pressure on Moscow in retaliation for the Russian invasion of Ukraine. Reuters says the U.S. made the move despite being the world’s biggest oil consumer. However, the U.S. wasn’t the only nation to make a move on oil from Russia. Britain says it will end all imports of all Russian oil and oil products by the end of this year. UK’s Business Minister is asking businesses to use the time between now and December 31 as a transition period to make the change as smooth as possible. Also, on Tuesday, the European Commission published plans to cut the EU’s dependency on Russian gas by as much as two-thirds this year. The commission also intends to completely end any reliance on Russian supplies of fuel well before 2030. *********************************************************************************** Farm Bureau Asks for Increased Domestic Energy Production American Farm Bureau President Zippy Duvall sent a letter to the Biden Administration asking them to take the necessary steps to address the high energy costs impacting all Americans. Over the past 15 months, oil prices have increased by 130 percent to more than $120 per barrel. Duvall says, “As Russia’s harmful actions in Ukraine continue and further sanctions get imposed against Russia, oil prices will likely continue to rise, creating even higher consumer costs and threatening U.S. energy and economic security.” The organization is asking the administration to remove barriers to domestic energy production and to increase the production of biofuels that have reduced America’s dependence on foreign crude oil while creating jobs in rural America. “By displacing imported petroleum, increased biofuel use, and domestic energy production will enhance U.S. security and independence while supporting America’s farmers and rural economies,” Duvall adds. Energy independence continues to be a high priority for the Farm Bureau. *********************************************************************************** Iowa Lawmakers Want EPA to Ramp Up Biofuel Production The Iowa congressional delegation is asking Environmental Protection Agency Administrator Michael Regan to prioritize America’s energy independence. Specifically, the group that represents the top ethanol-producing state in the country is pushing the administration to promote and incorporate ethanol and other biofuels into the American energy strategy. The goal would be to significantly reduce U.S. reliance on foreign oil and gas imports. Russia is the world’s third-largest producer of fuel at an average of 10.5 million barrels per day last year. “The U.S. and our allies are now looking to decrease our reliance on Russian oil,” the lawmakers said in a statement. “As Russia’s war with Ukraine continues, we urge the Biden administration to expand the production and potential export of domestic ethanol and biodiesel to meet global energy needs.” They also say that bolstering America’s domestic energy production through policies prioritizing biofuels will ensure a reliable and stable energy source for years to come. *********************************************************************************** FDA Approves Food Products from Gene-Edited Animals The Food and Drug Administration announced that it made a low-risk determination for the marketing of products, including food, from two genome-edited beef cattle and their offspring. The IGA results in the equivalent genotype, or genetic make-up, and the short-hair coat trait seen in some conventionally-bred cattle, known as a “slick coat.” The agency says the decision underscores its commitment to using a risk and science-based, data-driven process that focuses on the safety of the animals containing the IGA and the safety of the people who eat food produced by these animals. To date, the FDA has made low-risk determinations for many other IGAs in animals for non-food uses and also has approved applications for five IGAs in groups of goat, chicken, salmon, rabbit, and, most recently, in a line of pigs. A gene alteration can be passed on to offspring through conventional breeding. Products could be on the market within two years. *********************************************************************************** Ag Transportation Groups Want Help with Canadian Supply Challenges The Agriculture Transportation Working Group, which is made up of 19 agricultural groups, asked President Biden to work with the Canadian government on a variety of transportation challenges. They’re asking the White House to help the Canadian government avert a major railway labor strike and to get rid of the cross-border vaccine mandate for workers who are moving essential goods. “If the U.S. and Canadian governments allow the following supply chain disruptions to persist into the spring fertilizer season, the impacts to our industry and North American farmers could be devastating,” the group says. The Hagstrom Report says the letter refers to a potential upcoming labor disruption at Canadian Pacific Railway. Workers voted in favor of a strike action that could happen as soon as March 16. “The impact would be significant for grain movements on both sides of the border for livestock feeding and processing operations served by the CP,” the group adds. *********************************************************************************** NPPC Focuses on Readiness for Possible Foreign Animal Diseases The National Pork Producers Council hired Dr. Anna Forseth for the newly created position of Director of Animal Health. She will focus on foreign animal disease prevention and preparedness, as well as antibiotic use and resistance issues. “She has a wealth of knowledge about hogs and swine diseases and a great background in swine research,” says NPPC CEO Bryan Humphreys. “She’s going to be a great resource and asset for the U.S. pork industry.” The Montana native grew up on her family’s farrow-to-finish operation. She got her bachelor’s degree in animal science at Montana State University, her DVM at Colorado State University, and a master’s in veterinary preventive medicine from Iowa State University. Before joining NPPC, Forseth was a program veterinarian for the Montana Department of Livestock. “We’ll look to Dr. Forseth to be our lead as we work to strengthen our defenses against foreign animal diseases, especially African Swine Fever,” Humphreys adds.
| Rural Advocate News | Wednesday March 9, 2022 |
Wednesday Watch List Markets At 9:30 a.m. CST Wednesday, the Energy Department's weekly inventory will be released, a hot topic of attention after the U.S. announced a ban on Russian oil and gas Tuesday. Trading in grains on Wednesday morning may be quieter than it has been lately with USDA's March WASDE report due out at 11 a.m. CST. Traders will also pay attention to the latest weather forecasts and any news out of Ukraine. Weather A system continues to move from the Southeast to the Northeast on Wednesday with scattered showers across eastern areas, including the potential for some severe weather in the Southeast. A strong cold front continues to advance through the country but is hanging up temporarily in the Central Plains. That hang up is producing a band of light snow around Nebraska that will intensify later in the day and overnight along the Nebraska-Kansas border and expand a bit farther east into southern Iowa and northern Missouri as well with light to moderate snowfall amounts.
| Rural Advocate News | Tuesday March 8, 2022 |
More Lethal Avian Influenza in South Dakota, Maryland The USDA reported outbreaks of Highly Pathogenic Avian Influenza in South Dakota and Maryland over the weekend, adding concerns that wild birds are still spreading the disease across the U.S. Farmers have to kill their flocks after the disease gets detected, and Mexico, China, and Korea have imposed state-specific import restrictions in response. The losses come at the same time that food prices are skyrocketing. Reuters says this is the worst outbreak of bird flu since 2015 when almost 50 million birds were killed. Most were turkeys and egg-laying chickens in the Midwest. The U.S. is the world’s largest producer and second-largest exporter of poultry meat. The disease is already spread around Europe and is affecting birds in Africa, Asia, and Canada. Other outbreaks have already been reported in Missouri, Iowa, Delaware, Kentucky, the Carolinas, and Indiana. USDA says the H5N1 strain can be passed on to humans, though the risk to people is low. *********************************************************************************** Possible Ban on Russian Oil Imports Gaining Momentum The price of oil has increased more than six-fold since the low point early in the pandemic. The Washington Post says oil prices haven’t been this high since the financial crisis of 2008. Prices continued higher on Monday as fears the United States and its allies in Europe are considering possible bans on imports of Russian crude. The White House said last Friday that it’s weighing a ban on imports of Russian oil. The possibility is officially before Congress as West Virginia Democrat Joe Manchin and Alaska Republican Lisa Murkowski introduced a bill that would ban American imports of Russian oil. U.S. lawmakers on both sides of the aisle are pressuring the White House to hit Russian President Vladimir Putin where it hurts the most by imposing sanctions on Russia’s massive energy sector. “I’m all for that,” said Speaker of the House Nancy Pelosi during a recent press conference. “Ban it.” *********************************************************************************** China Scooping Up U.S. Corn and Soybeans The world’s biggest importer of commodities is feeling the pinch of the Russian invasion of Ukraine. China is buying large numbers of U.S. corn and soybeans to help offset potential shortages in world commodity supplies because of the Russian invasion of Ukraine and slower harvests in South America. Bloomberg says Chinese buyers booked 20 cargoes of American soybeans and 10 shipments of corn. The purchases show the high demand in China as the country worries about the long-term availability of grains on the world market. The buying is taking place after the Phase One Trade Deal between China and the U.S. expired without targets getting met. While both countries are talking about extending the deal, China will likely keep buying more American commodities to get what it needs. As shipments from Russia and Ukraine drastically slow, China has been a major buyer of Ukraine’s corn and barley, as well as sunflower oil from both Ukraine and Russia. *********************************************************************************** USDA Deadline for Cover Crop Program is March 15 The USDA wants to remind producers that the deadline for the Pandemic Cover Crop Program is March 15. The program provides farmers who plant cover crops and have coverage under most crop insurance policies are eligible for a premium benefit from the USDA. All cover crops reportable for the Farm Service Agency are eligible. The premium support is $5 per acre, but no more than the full premium amount owed. Last year, producers received $59.5 million in PCCP premium subsidies. The goal of the PCCP is to promote eco-friendly farming that will also improve producer profitability. Farmers typically plant cover crops during the fall, such as cereal rye, to help improve soil health. Producers must file a Report of Acreage form for cover crops at their local Farm Service Agency office by March 15. Farmers can quickly find out if the program can help their operation by taking the new PCCP eligibility quiz at farmers.gov. *********************************************************************************** Growth Energy Debunks Anti-Ethanol Study Growth Energy submitted supplemental comments to the Environmental Protection Agency responding to inaccurate claims from other groups about ethanol. In the supplemental submissions, Growth Energy rebuts claims based on a recently published anti-ethanol study with conclusions about the greenhouse gas emission impacts of ethanol that are wildly out of step with the established scientific consensus. Environmental experts and leading government agencies agree that ethanol reduces GHG emissions when compared to gasoline, which helps to put our nation on a path toward net-zero emissions. “EPA is expected to use the best available science when making important decisions under the RFS and other environmental laws,” says Growth Energy CEO Emily Skor. “The recent comments submitted to EPA very obviously don’t meet this standard and should be rejected outright.” The organization points out that the Department of Energy, the Department of Agriculture, the California Air Resources Board, and the EPA have all agreed that biofuels reduce carbon emissions. *********************************************************************************** AEM issues the Ag and Construction Equipment Market Outlook While the global economy remains on track for expansion, several challenges are likely ahead and will serve as obstacles for the agriculture and construction equipment manufacturing industries. The latest data from the Association of Equipment Manufacturers says the global economy expanded by a robust 5.1 percent in 2021. While 2022 growth is projected at 3.9 percent, slower growth seems like a foregone conclusion. Short-term issues like ongoing supply chain problems and persistent labor shortages, as well as long-term factors like inflation have emerged to cut down on the enthusiasm of what’s been a strong worldwide economic resurgence. In a statement, AEM says, “this economic disruption has impacted all of us a great deal, and we’re still dealing with the aftereffects today, including labor shortages, supply chain problems, and higher interest rates.” Even with the questions ahead, AEM says the stock market is still up 30 percent from two years ago.
| Rural Advocate News | Tuesday March 8, 2022 |
Tuesday Watch List Markets At 7:30 a.m. CST Tuesday, the U.S. Commerce Department will report on the trade deficit for January. Later Tuesday, USDA will publish U.S. Census Bureau export data for various ag products in January, including ethanol and biodiesel. Traders will note the latest weather forecasts and watch for the latest news regarding Ukraine. Weather A frontal boundary left over from the weekend system will produce scattered showers in the Southeast Tuesday. But the bigger weather concern will be the arctic front moving through the Plains and Upper Midwest. Snow showers are limited for today, but temperatures behind the front are plunging well below normal which will spread through the rest of the country this week.
| Rural Advocate News | Monday March 7, 2022 |
ARC/PLC Signup Deadline is March 15 Farmers who haven’t signed up for the Agriculture Risk Coverage (ARC) or Price Loss Coverage (PLC) programs for 2022 have until March 15 to sign their contracts. The two safety-net programs provide income support for farmers who experience significant drops in crop prices or revenues. “The ARC and PLC programs give important financial protections to many American farmers,” says Farm Service Agency Administrator Zach Ducheneaux. Producers have completed 54 percent of the more than 1.8 million expected contracts. If producers don’t submit an election by the deadline, the contract remains the same as the 2021 election for crops on the farm. The Hagstrom Report says farm owners can’t enroll in either program unless they have a direct share interest in the crops. “As producers work through a pandemic and climate-induced disasters, these programs are even more important than ever,” Ducheneaux adds. “Producers should reach out to their local offices to learn more about their options.” *********************************************************************************** Russian Ministry Recommends Halting Fertilizer Exports Russia’s ministry on trade and industry is recommending the country’s fertilizer producers temporarily halt exports. Reuters says it’s a sign that sanctions imposed after Russia invaded Ukraine might impact other countries. Many major international shipping companies suspended virtually all cargo shipments to and from Russia to comply with sanctions. The Russian ministry says, “We have recommended Russian producers temporarily suspend export shipments of Russian fertilizers until carriers resume their work and provide guarantees that Russian fertilizer exports will get fully completed.” Russia produces 50 million tons of fertilizers every year, 13 percent of the world’s total. The country is a major exporter of potash, phosphate, and nitrogen-containing fertilizers, all of which are major crop and soil nutrients. “Vessels are not coming here,” a source in the Russian fertilizer industry told Reuters. “And there are no containers at all.” Russia has been considering retaliating against Western sanctions but hasn’t officially announced any steps so far. *********************************************************************************** Ag Groups Reject Canada’s Dairy Proposal The National Milk Producers Federation and the U.S. Dairy Council rejected a proposal from Canada regarding U.S. access to its dairy markets. The organizations say Global Affairs Canada outlined changes last week to their current scheme for allocating U.S.-Mexico-Canada Agreement dairy tariff-rate-quotas. In January, the U.S. Trade Representative’s Office announced it had won USMCA’s first-ever dispute settlement panel with Canada regarding dairy market access for U.S. farmers. “Enough is enough,” says Jim Mulhern, president and CEO of NMPF. “U.S. dairy producers are sick and tired of Canada’s game playing on dairy market access.” As the first case decided under USMCA, the U.S.-Canada dairy TRQ panel is a test case for whether the USMCA dispute settlement process can provide effective enforcement and deliver genuine compliance with the agreement. “Canada is trying to see how little will get demanded from them, so it’s essential that the U.S. insist on real reforms,” says Krysta Harden, president and CEO of USDEC. *********************************************************************************** Banks’ Farm Lending Stabilizes Farm debt at commercial banks showed signs of stabilizing at the end of 2021. Driven by a higher balance of real estate and non-real estate loans, agricultural debt increased for the first time since 2019. The Kansas City Federal Reserve says while the pullback in lending abated, agricultural loan balances remained below the recent historic average. Farm real estate loans also increased slightly at agricultural banks, but production loans continued to decline and led to a further reduction in the concentration of debt among those lenders. The low interest rate environment continued to pressure margins for lenders, and sharp asset growth pushed capital ratios lower, but stronger earnings performance held overall returns for agricultural banks above the recent historic average. A relatively strong outlook for the farm economy in 2022 appears likely to continue supporting improvements in agricultural credit conditions. Farm loan delinquency rates improved further through the end of 2021, as did bank liquidity. *********************************************************************************** Groups File Complaint with FTC Over Right to Repair Groups like the National Farmers Union and other right-to-repair advocates filed a complaint with the Federal Trade Commission against John Deere over the right to repair its equipment. The complaint alleges that the tractor manufacturer makes its product difficult or impossible to repair unless taken to a Deere dealer. The groups say it’s a monopoly that violates Sherman antitrust laws. “Deere usually outcompetes rivals to win farmers’ and ranchers’ business but has recently begun to leverage its monopoly power in the market to dominate the repair market for its equipment,” the complaint says. “The company has made it impossible for farmers to make important repairs themselves or go to an independent repair shop.” Vice Dot Com says this is an issue impacting a lot of farmers as Deere makes more than 50 percent of tractor sales in the U.S. The complaint says farmers have no real choice about where to get repairs. *********************************************************************************** China Buys a Large Supply of U.S. New Crop Soybeans Soybean and grain sales for overseas delivery dropped in the seven days ending on February 24. However, USDA says soybean sales for delivery in the 2022-2023 marketing year beginning on September 1 totaled 1.39 million metric tons, with China buying 1.26 million. For the week ending on February 24, soybean sales totaled 857,000 metric tons, a 31 percent drop from the previous week and 34 percent lower than the prior four-week average. Exports for the week reached 751,000 metric tons, a 40 percent drop week-to-week. Corn sales dropped to 485,000 metric tons during the week, down 53 percent from the week before and 47 percent from the four-week average. Corn exports during the week hit 1.55 million metric tons, down 18 percent week-to-week. Wheat sales dipped 42 percent from the prior week to 300,000 metric tons. That was a 54 percent rise compared to the prior four-week average. Wheat exports dropped 33 percent to 365,000 tons.
| Rural Advocate News | Monday March 7, 2022 |
Monday Watch List Markets On Sunday evening and Monday, traders will catch up to the latest weather forecasts and news out of Ukraine. USDA's weekly report of grain export inspections is due out at 10 a.m. CST, followed by a report on U.S. consumer credit at 2 p.m. Weather A system moving up the Ohio River continues to produce scattered showers and thunderstorms from the southeastern Plains into the Northeast on Monday. Moderate amounts are expected near the Ohio River. Some severe reports will be possible within a hundred miles of the Appalachians where wind gusts are the main threat.
| Rural Advocate News | Friday March 4, 2022 |
Groups Ask for Year-Round Access to Biofuels The top biofuel and farm advocate groups in the U.S. called on the administration to swiftly expand access to plentiful, lower-cost biofuels as fuel prices get closer to record levels. Russia’s invasion of Ukraine is sparking fuel prices higher, and the Environmental Protection Agency will soon finalize biofuel blending requirements for 2021 and 2022. The agency will also address a controversial bid to retroactively alter volumes set for 2020. “American-made biofuels are the only alternative to oil that can immediately extend the domestic supply of liquid fuels,” the groups said in a statement. “Experts continually warn us that Russia and OPEC will not protect American drivers from the inflated costs of fuel.” Groups like Growth Energy, The American Farm Bureau, the National Farmers Union, the Renewable Fuels Association, and many others say the time is now to expand clean energy production, reduce emissions, and protect the economy from volatile oil prices. *********************************************************************************** Rabobank: Wheat Buyers Considering Other Sources Wheat prices continue to climb as the Russian invasion of Ukraine is ongoing. A Rabobank analyst says the world’s biggest wheat buyers may need to reconsider whether they’ll continue buying grain from the Black Sea regions. “Russia and Ukraine have moved a lot of wheat into the market already, so things should be pretty good for this year,” says Stephen Nicholson of Rabobank. “However, the bigger problem is we don’t have enough world stocks to make up for the loss of Russia and Ukraine because they are such big producers.” Buyers will have to reconsider business in the Black Sea region because of doubts about getting vessels out of the region safely. The Hagstrom Report says buyers may turn to other suppliers like the U.S., Argentina, and Europe. With the ongoing acreage battle between corn and soybeans in the U.S., Nicholson says we’ll see what the war does to the number of U.S. wheat acres. *********************************************************************************** Economist: Open up CRP to Crops in 2022 University of Illinois Agricultural Economist Scott Irwin says it may be time for the Biden Administration to open the Conservation Reserve Program for cropping in 2022. In a series of Twitter posts, Irwin says, “Emergency situations sometimes require extraordinary responses.” He also says the longer the war goes on in Ukraine and sanctions against Russia continue, the bigger the supply shock will be to global grain markets. “I truly hope I’m wrong, but there are potentially tens of millions of acres of grain production at stake right now,” Irwin says. “This leads me to conclude that the world desperately needs additional acres for grain production in 2022.” Nothing can get done in the short-term except to run up the price of grain high enough to ration demand, but he says that could take a wildly high price. “The only policy move right now is opening up CRP for cropping on a one-year basis,” he says. *********************************************************************************** Ag Safety Awareness Week: “Prepare. Prevent. Protect.” The Agricultural Safety Awareness Program Week is March 7-11. U.S. Agricultural Safety and Health Centers will join with the American Farm Bureau in promoting ag safety through the week with the theme “Prepare. Prevent. Protect.” Each day of the week will deal with a different safety topic, including livestock safety, the cost and finances of safety, disaster preparedness, youth safety, and equipment safety. “The safety of everyone is our top priority,” says American Farm Bureau President Zippy Duvall. “We encourage farmers and ranchers to take advantage of all the resources available during Agricultural Safety Awareness Program Week and make safety a priority year-round.” The Agricultural Safety Awareness Program is a part of the Farm Bureau Health and Safety Network of professionals who share an interest in identifying and decreasing safety and health risks. The Ag Centers’ YouTube channel contains new content and fresh ideas about how to stay safe while working in agriculture, forestry, and fishing. *********************************************************************************** NIFA Investing Over $15 Million in Ag Economics and Rural Communities The National Institute of Food and Agriculture announced an investment of more than $15 million to support building new and better markets for American ag and rural communities. “These critical research investments support the economic, social, and environmental sustainability of agriculture and rural communities,” says NIFA Director Carrie Castille. “Outcomes of this research will help with decision making, policy design, and implementation to enhance agricultural production systems and promote economic development and prosperity.” The investment is through NIFA’s Agricultural Economics and Rural Communities program. The AERC addresses challenges facing the evolving agricultural sector within rural communities, including implications for food production and consumption and natural resources management to protect the environment in the face of increasing global demands for food production. The AERC program also builds on the fundamental and applied knowledge foundation in food and agricultural sciences that’s critical for solving real-world problems. The funding will support 27 different projects at secondary education institutions. *********************************************************************************** New Farmer-Leaders Appointed to the United Soybean Board The USDA appointed nine new U.S. soybean farmers to serve on the United Soybean Board and reappointed eight directors for another term. “With different uses of soy continuing to grow, this is an exciting time to be USB farmer-leaders,” says Ralph Lott, USB Chair and a New York farmer. “I look forward to working with these passionate individuals who will bring additional perspectives and insights, expanding our group of creative and innovative thinkers.” U.S. soybean farmers receive an estimated $12.34 in value for every dollar they invest in the checkoff. Those investments continue to fund programs that build preference for American soybeans across the country and around the world. The checkoff is composed of 78 members representing 29 states. “The group of farmer-leaders represent a variety of operations and unique points of view across the many growing regions of the country,” says Megan Kaiser, USB Vice-Chair and Missouri farmer. USB farmer-leaders serve three-year terms.
| Rural Advocate News | Friday March 4, 2022 |
Friday Watch List Markets At 7:30 a.m. CST, the U.S. Labor Department will release nonfarm payrolls and the unemployment rate for February. Traders will continue to watch the latest forecasts and events in Ukraine. Late Friday afternoon, CFTC will release its Commitments of Traders report and we'll get an update of how many specs were still short in the market on March 1. Weather A pair of storm systems moving through the West will emerge into the Plains but not until late tonight. Scattered showers will continue across western states while most areas east of the Rockies will remain dry until late tonight or Saturday. The weather will then change drastically as two systems move through the country with moderate to heavy mixed precipitation and colder temperatures. The systems will skip over drought areas in the southwestern Plains as concerns continue for hard red winter wheat.
| Rural Advocate News | Thursday March 3, 2022 |
USDA Announces Additional $80 Million for Long-Term Resilience in the Dairy Industry The Department of Agriculture Wednesday announced an additional investment of $80 million in the Dairy Business Innovation Initiatives. In November 2021, the program awarded $18.4 million to three current initiatives at the University of Tennessee, Vermont Agency for Food and Marketing and University of Wisconsin, and $1.8 million to a new initiative at California State University Fresno. Under the existing program, which was previously announced through a FY21 Request for Applications, each initiative can submit additional proposals for up to $20 million in American Rescue Plan funding. The funds can further support processing capacity expansion, on-farm improvements, and technical assistance to producers. Since its inception in 2019, the initiatives have provided valuable technical assistance and sub-grants to dairy farmers and businesses across their regions, assisting them with business plan development, marketing and branding, and increasing access to innovative production and processing techniques supporting the development of value-added products. *********************************************************************************** FSIS Removes Mask Mandate for Meat Processing Facilities USDA’s Food Safety and Inspection Service this week removed mandatory mask requirements at federally inspected meat processing facilities. As of March 1, 2022, FSIS Notice 34-21 requiring masks was rescinded. FSIS-regulated establishments are no longer subject to suspension or withdrawal of inspection services for failure to require their employees to wear masks when FSIS inspection program personnel are present. The action follows Centers for Disease Control guidance changes recommending wearing a well-fitting mask indoors, regardless of vaccination status, only in areas experiencing a high level of COVID-19 and severe disease. However, FSIS employees must continue to wear masks at this time as set out in the USDA workplace safety plan. U.S. Cattlemen’s Association Beef Processing Committee Chairman Patrick Robinette welcomed the FSIS action. Robinette says the updated guidance “will put back into operation several regional processing facilities that were forced to go offline due to the previous guidance.” *********************************************************************************** NFU Concludes 120th Anniversary Convention National Farmers Union members adopted the organization’s 2022 policy book during its 120th Anniversary convention this week. More than 450 members and guests convened in Denver, Colorado, to set policy positions and priorities for NFU. Five special order priorities include fairness for farmers, supply chains, agricultural workforce and food processing reform, climate change and dairy policy reform. NFU says a fair, open, and competitive marketplace is central to the health and wellbeing of the American economy and democracy. NFU President Rob Larew says, “After hearing from a remarkable slate of speakers and a robust policy setting process, we leave Denver with a newfound energy.” Agriculture Secretary Tom Vilsack headlined the general session. Other speakers included Colorado Governor Jared Polis, Colorado Agriculture Commissioner Kate Greenberg and Senate Democrat Jon Tester of Montana. NFU also presented Senator Tester with the Fairness for Farmers Champion Award. Additionally, delegates re-elected Larew as president and elected Jeff Kippley as the organization’s vice president. *********************************************************************************** Iowa Confirms Avian Flu in Poultry Flock The Iowa Department of Agriculture and USDA’s Animal and Plant Health Inspection Service this week confirmed a positive case of highly pathogenic avian influenza. The virus was found in a non-commercial, backyard poultry flock in Southwest Iowa. The state’s Agriculture Secretary Mike Naig says, “We are working with USDA and other partners to implement our plans and protect the health of poultry flocks in Iowa." Whether commercial producers or backyard flock owners, all bird owners should practice good biosecurity, which USDA says is the best way to keep livestock healthy. HPAI is a highly contagious, viral disease affecting bird populations and can travel in wild birds without those birds appearing sick, but is often fatal to domestic bird populations. Signs of HPAI include a sudden increase in bird deaths, lack of energy or appetite, and decreased egg production. If producers suspect signs of HPAI in their flocks, they should contact their veterinarian immediately. *********************************************************************************** Purdue Professor Receives Grant for ASF Rapid Test A grant from the National Animal Health Laboratory Network and the National Animal Disease Preparedness and Response Program will help develop rapid testing for African swine fever. Quick identification and containment are key to stopping its spread, and a team of Purdue University researchers is developing a rapid, pen-side test for the disease. Purdue University professor Mohit Verma (mo-heet Verm-uh) received the $1 million grant, funded by the 2018 Farm Bill. Verma says, "A rapid test that can be done in the field is needed for surveillance and diagnosis of African swine fever." Verma is collaborating with Purdue scientists to create a portable paper-strip test for the disease. The project follows in the footsteps of Verma's success developing similar tests for COVID-19 and Bovine Respiratory Disease. A saliva or blood sample will be used for the test. The sample is mixed with primers and reagents developed by the team within a cartridge and gently heated. The included paper strip then changes colors if ASF DNA is present. *********************************************************************************** Use of Irrigation Systems Vary by Crop New data from USDA’s Economic Research Service shows irrigation methods vary by crop because of differences in production practices, crop value, water source, and soil characteristics. Irrigation application methods can be broadly categorized as either gravity or pressurized systems. Pressurized irrigation systems apply water under pressure through pipes or other tubing, while gravity irrigation systems use field slope to advance water across the field surface. Rice has the largest share of acres irrigated by gravity systems, which is related to the flooding requirements of most rice production systems in the United States. Peanuts have the largest proportion of acres irrigated by pressurized systems. Pressurized systems are also prevalent among high-value specialty crops, such as vegetables and orchards. Pressurized irrigation systems, particularly low-flow micro-irrigation systems, are generally more expensive than gravity irrigation systems, precluding their use among lower value crops. Pressurized systems are also more prominent among crops concentrated in regions more reliant on groundwater.
| Rural Advocate News | Thursday March 3, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is out at 7:30 a.m. CST Thursday, the same time as weekly U.S. jobless claims, an update of fourth-quarter productivity and an update of the U.S. Drought Monitor. U.S. factory orders for January are set for 9 a.m., followed by the Energy Department's natural gas storage report at 9:30 a.m. Federal Reserve Chairman Powell also testifies before the U.S. Senate on Thursday, while traders keep a close eye on events in Ukraine and the latest weather forecasts. Weather Another day of mild and dry conditions continues across most of the country on Thursday. A frontal boundary across the north will keep temperatures cooler toward Canada and there may be some isolated showers on the northern side of this boundary today as well, but more areas than not will see above normal temperatures. Showers will still occur in the Pacific Northwest and a system moving into California with showers will have significant consequences to the rest of the country this weekend.
| Rural Advocate News | Wednesday March 2, 2022 |
Biden Delivers State of the Union Address President Joe Biden’s State of the Union transcript included two mentions of the word farm. Biden said, “When corporations don’t have to compete, their profits go up, your prices go up, and small businesses and family farmers and ranchers go under,” announcing a crackdown on companies overcharging American businesses and consumers. The second, Biden stated a goal to “provide a pathway to citizenship for Dreamers, those on temporary status, farm workers, and essential workers.” The speech included no mention of biofuel, ethanol or agriculture. Biofuel is a hot topic for agriculture as the price of gas and oil continue to increase and worries of Russia’s invasion of Ukraine are intensifying that. Iowa Governor Kim Reynolds delivered the Republican response to the speech. While Republicans are not in the White House, she said “We’re doing what we can,” including “fighting to restore America’s energy independence, including biofuels.” *********************************************************************************** Farmer Sentiment Rises During Commodity Price Rally The Purdue University-CME Group Ag Economy Barometer rose six points in February to 125, matching the sentiment reading from December. A more optimistic view of future conditions pushed the sentiment measure higher as the Index of Future Expectations rose ten points in February to 122, the most positive reading regarding the future by farmers since last August. The Index of Current Conditions was virtually unchanged at 132, just one point below a month earlier. This month’s survey was conducted from February 14-18, before Russia invaded Ukraine. The survey found producers remain concerned about the spike in production costs leading them to expect weaker farm financial performance in 2022 than in 2021. Supply chain issues continue to hold back farmers’ plans for investments in farm machinery as well as buildings and grain bins. Also, one-third of corn producers in this month's survey said they plan to reduce their nitrogen application rate compared to the rate they used in 2021. *********************************************************************************** Prolonged Fertilizer Disruptions Possible Nutrien, the world’s largest fertilizer producer, says Russia’s invasion of Ukraine could result in prolonged disruptions of fertilizer supplies. In a report from Reuters, Interim Chief Executive Ken Seitz said Nutrien will boost potash production if it sees sustained supply problems in Russia and Belarus, the world's second-and third-largest potash producing countries after Canada. The comments come as farmers are already dealing with high fertilizer costs stemming from supply chain disruptions and natural gas prices. However, state corn organizations allege the price of fertilizer closely follows the price of corn, not natural gas. Speaking at the BMO Capital Markets investor conference, Seitz said, “We're going to run our plants, run them flat out,” adding,” Could we see interruptions in exports out of Russia? Yes. Can we see plant closures? We could." Nutrien expects to sell up to 14.3 million metric tons of potash this year, its most ever, and is considering further expansion, according to Reuters. *********************************************************************************** USTR Releases 2022 President’s Trade Policy Agenda The Biden administration Tuesday released its 2022 Trade Policy Agenda and 2021 Annual Report. In 2022, the U.S. Trade Representative’s Office will continue to implement Biden’s trade priorities as the United States recovers from the COVID-19 pandemic. That work includes soon releasing additional details on the Indo-Pacific Economic Framework. Key elements in 2022 include supporting workers’ rights, accelerating decarbonization, and supporting U.S. agriculture. The Biden Administration is also focused on creating new opportunities for agriculture, including using existing Free Trade Agreements and Trade and Investment Framework Agreements. Additionally, the strategy includes bolstering supply chains and re-aligning the U.S.-China trade relationship. The report also highlights accomplishments from 2021, including work to promote sustainable environmental practices in trade policy, enforce existing agreements and improve the resilience of global supply chains. It also details how USTR and the Biden Administration have re-aligned the United States-China bilateral trade relationship to defend the rights of American workers, farmers, producers, and businesses. *********************************************************************************** Growth Energy Calls on Biofuels to Address Global Energy Crisis Growth Energy CEO Emily Skor says the uncertainty of the situation in Ukraine underscores the need for more homegrown biofuels to reduce U.S. dependence on foreign oil and improve energy security. In an open letter Tuesday ahead of President Biden’s State of the Union Address, Skor highlighted the potential of biofuels to help lessen the impact of high oil and gas prices. This week, oil prices spiked to more than $100 a barrel, and gas prices are also increasing. In the letter, Skor says, "Increasing access to higher blends of ethanol through E15 year-round can help keep prices down at the pump." Growth Energy says moving E15 nationwide would generate $12.2 billion in savings for U.S. consumers at the pump each year, and bolster the domestic market supply, driving prices downward. Skor says homegrown and low-carbon solutions like biofuels can shield American drivers from the continued volatility in the OPEC-controlled, global oil market. *********************************************************************************** USDA Announces Supplemental American Rescue Plan Funding The Department of Agriculture Tuesday announced supplemental American Rescue Plan Act funding for the Local Agriculture Market Program. The program will receive a total of $130 million in supplemental funding from American Rescue Plan Act. The funding seeks to promote competition and create more and better markets for local and regional food producers by expanding and strengthening opportunities to sell to institutions, such as universities, hospitals, and others. The supplemental funding is divided into $65 million for fiscal years 2022 and 2023 each. Agriculture Secretary Tom Vilsack says, “Through these grant programs we are able to maximize opportunities for economic growth and ingenuity in the local and regional food system.” In fiscal year 2022, the Local Agriculture Market Program will receive a total of $97 million in competitive grant funding to help local and regional food entities develop, coordinate and expand producer-to-consumer marketing, local and regional food markets and local food enterprises. *********************************************************************************** Top Producer Names Women in Agriculture Trailblazer Award Winner Susan Weaver Ford of Kenly, North Carolina, was recognized as the 2022 Executive Women in Agriculture Trailblazer Award winner at Farm Journal’s Top Producer Summit in Nashville. Sponsored by Pioneer, the Executive Women in Agriculture Trailblazer Award honors female producers who are a shining example for their peers. The winner is an advocate for agriculture and represents an innovative farming operation. Entrants were judged on agricultural advocacy, farm business innovation and industry or community leadership. Applications are received from producers across the country and judged by a panel of industry experts. Ford and her father, Ray Weaver, grow tobacco, corn, soybeans, wheat, oats and cotton across 2,000 acres, 420 of which are family-owned. Top Producer magazine's Sara Schafer says, “She is fine-tuning budgets, marketing grain, negotiating contracts and doing high-level risk management.” Last year she was selected as one of 10 Americans to be a Nuffield International Farming Scholar.
| Rural Advocate News | Wednesday March 2, 2022 |
Wednesday Watch List Markets As has been the routine lately, traders will be watching the latest weather forecasts and any news regarding Ukraine Wednesday. The U.S. Energy Department issues its weekly inventory report at 9:30 a.m. CST, including ethanol production. OPEC and other major oil producers meet Wednesday and are expected to stick to the plan of increasing oil production by 400,000 barrels per day. At 1 p.m., the Federal Reserve's Beige Book will be released. Weather A frontal boundary across the northern tier of the country will bring some isolated showers to some areas on Wednesday and showers will continue in the Pacific Northwest. But most of the country will be mild and dry for another day.
| Rural Advocate News | Tuesday March 1, 2022 |
USDA to Gather New Data on Certified Organic Agriculture Production USDA's National Agricultural Statistics Service is conducting the 2021 Organic Survey to gather new data on certified organic crops and livestock commodities in the United States. USDA says the effort is critical to help determine the economic impact of certified organic agriculture production on the nation. NASS is mailing the survey to all known certified organic farms and ranches within the 50 states. The questionnaire asks producers to provide information on acreage, production, and sales, as well as production and marketing practices. A USDA NASS spokesperson says, "We continue to receive requests for updated data on organic farms, especially to measure growth in the production sector of the organic industry." According to the 2019 survey, U.S. certified organic producers sold a total of $9.93 billion in products, up 31 percent over 2016. Participants should respond by April 4. Producers can return their questionnaires by mail or complete them online at www.agcounts.usda.gov using the new Respondent Portal. *********************************************************************************** EPA Takes Next Step to Keep Chlorpyrifos Out of Food The Environmental Protection Agency Monday announced the next step to discontinue use of chlorpyrifos (Klohr-PEER-uh-fohs) on food by denying objections to EPA’s rule revoking all chlorpyrifos tolerances. An EPA spokesperson says, “EPA is taking the next step towards the cancellation of the use of chlorpyrifos on food.” In August 2021, EPA issued a final rule revoking all tolerances — which establish an amount of a pesticide that is allowed on food — for chlorpyrifos. Previously, chlorpyrifos was used for a large variety of agricultural uses, including soybeans, fruit and nut trees, broccoli, cauliflower, and other row crops. EPA says it has been found to inhibit an enzyme, which leads to neurotoxicity, and has also been associated with potential neurodevelopmental effects in children. Under Monday’s action, EPA is denying all objections, hearing requests, and requests to stay the final rule filed during the period for submitting responses to the final rule. *********************************************************************************** Chevron Acquiring Renewable Energy Group Chevron Corporation and Renewable Energy Group, Inc. announced Monday a definitive agreement under which Chevron will acquire the outstanding shares of Renewable Energy Group. The all-cash transaction is valued at $3.15 billion, or $61.50 per share. Company leadership says the acquisition combines Renewable Energy Group growing renewable fuels production and leading feedstock capabilities with Chevron's large manufacturing, distribution and commercial marketing position. Chevron Chairman and CEO Mike Wirth says, "Together, we can grow more quickly and efficiently than either could on its own." The transaction is expected to accelerate progress toward Chevron's goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities. After closing the acquisition, Chevron's renewable fuels business, Renewable Fuels - REG, will be headquartered in Ames, Iowa. Renewable Energy Group operates 12 biorefineries and a feedstock processing facility and is the largest U.S. producer of biomass-based diesel. *********************************************************************************** Producer-Led RIPE Expands Steering Committee Rural Investment to Protect our Environment, or RIPE, announced Monday the National Black Growers Council recently joined its steering committee. RIPE Executive Director Aliza Drewes says, “The council’s mission of advocating for Black farmers with a focus on sustainability aligns with RIPE’s focus of creating a strong climate policy that works for all farmers and ranchers.” RIPE is self-described as a producer-led nonprofit advancing a groundbreaking, bipartisan climate policy plan that works for producers and the public. Through payments of $100 per acre or animal unit, the RIPE100 plan would reward producers for the total public value of their conservation practices, including no-till and cover crops. In addition to carbon sequestration, the voluntary federal program would pay for improved soil health, cleaner water, biodiversity and other environmental services. Payments would also help farmers and ranchers manage rising input costs, such as fertilizer, due to climate policy while giving them a reasonable return. *********************************************************************************** Food Insecurity Rates Vary Across States USDA Economic Research Service data released Monday shows food insecurity rates vary across U.S. states. The estimated prevalence of food insecurity during 2018–20 ranged from 5.7 percent in New Hampshire to 15.3 percent in Mississippi. The estimated national average was 10.7 percent. The prevalence of food insecurity was significantly higher than the national average in nine states, including Alabama, Kentucky, Louisiana, Mississippi, New Mexico, Oklahoma, Tennessee, Texas and West Virginia. Food-insecure households are defined as those that had difficulty at some time during the year providing enough food for all their members because of a lack of resources. USDA monitors the extent of food insecurity in U.S. households at the national and state levels through an annual U.S. Census Bureau survey. State-level estimates are then obtained by averaging three years of data to generate more reliable statistics. State food insecurity rates vary because of state-level characteristics such as population, policies, and economic conditions. *********************************************************************************** Invasion Sparks Increasing Fuel, Oil Prices The Russian invasion of Ukraine boosted fuel prices last week. For the ninth straight week, U.S. fuel prices increased, with gas claiming 7.5 cents to an average of $3.59 per gallon, according to GasBuddy. The national average is up 23.2 cents from a month ago and 87.6 cents per gallon higher than a year ago. The national average price of diesel increased 5.5 cents in the last week and stands at $3.98 per gallon, the highest since March 23, 2014. GasBuddy’s Patrick De Haan says, “The Russian invasion of Ukraine has sparked high level concern that oil production could eventually be stifled, or even sanctioned, from the world’s second largest oil producer, leading to less supply as demand grows.” That comes at a time of year when seasonality issues push gasoline prices up by anywhere from 25 to 75 cents by Memorial Day. De Haan says, “it’s looking like a perfect storm,” adding, there is “little to no relief anytime soon.”
| Rural Advocate News | Tuesday March 1, 2022 |
Tuesday Watch List Markets Traders remain attentive to the latest weather forecasts and are eagerly following events in Ukraine. The Institute of Supply Management's index of U.S. manufacturing will be out at 9 a.m. CST. The monthly report of U.S. soybean crush in January will be revealed in the Fats and Oils report from NASS at 2 p.m. CST. Weather On the first day of meteorological spring, it will feel like it for most areas of the country. A stationary boundary continues to sit near the northern border and may remain active with some light and spotty showers, and waves of precipitation continue in the Pacific Northwest. But the rest of the country will be dry and mild with above normal temperatures.
| Rural Advocate News | Monday February 28, 2022 |
Farm Real Estate Values Continue to Climb Agricultural real estate values continued to increase at a rapid pace across farm country through the end of last year. The increase in the value of farmland has accelerated in recent quarters alongside elevated commodity prices that have boosted profit opportunities and supported broad strength in the U.S. farm economy. The Federal Reserve Bank of Kansas City says farm finances and credit conditions have improved dramatically in recent years and interest rates on farm loans remained near historic lows. That’s added support to agricultural real estate markets. Looking at the year ahead, the outlook for agricultural credit conditions remains strong. Elevated commodity prices and robust support from government aid programs due to COVID-19 supported rapid improvement in farm income and credit conditions. Despite concerns about higher input costs and intensifying drought in some regions, markets for most major commodities remained strong, and producers are looking at sound profit opportunities in 2022. *********************************************************************************** Vilsack says Ag Outlook is “Strong” Ag Secretary Tom Vilsack gave the keynote address last week at the USDA’s annual Agricultural Outlook Forum. The Hagstrom Report says that the secretary called the outlook for U.S. agriculture “bright, strong, and positive” despite the problems around the world. When asked about the impact of the battle in Ukraine, Vilsack said it’s too early to make projections about what impacts the war will have on fertilizer and food prices in the U.S. He also says the administration will be supportive of state attorneys general analyzing the history of fertilizer pricing. His biggest concern is that companies may be taking advantage of farmers. The secretary made his remarks after returning from a trade mission to Dubai, the first mission in two years. Vilsack says ag exports set a record last year, and exports will be even higher this year. He said the Dubai trip is part of an agency effort to diversify exports beyond China. *********************************************************************************** First Tariff-Free Load of Wheat Arrives in Vietnam After productive talks with the U.S. in 2021, the Vietnamese government eliminated a three percent U.S. wheat import tariff on December 30. Earlier this month, the first shipment of U.S. wheat purchased without a tariff arrived at a Vietnam port. The shipment contained more than 68,300 metric tons of soft white and hard red spring wheat grown in the Pacific Northwest and Northern Plains. “With the import tariff reduced to zero, the Vietnamese buyer saved almost one million dollars on this vessel load of U.S. wheat,” says Robert Hanson, Agricultural Counselor with the Foreign Ag Service in Hanoi. Vince Peterson, President of U.S. Wheat Associates, says, “The Foreign Agricultural Service worked hard to cut this barrier and level the playing field for American wheat in Vietnam.” Vietnam imports an average of about four million metric tons of wheat every year. Peterson says the demand for U.S. wheat in Vietnam will keep growing in the future. *********************************************************************************** Grain Buyers Look for Alternative Grain Supplies International grain buyers are looking for different places to buy wheat and corn as a Russian invasion cut off Ukrainian supplies. Reuters says European Union producers like Romania and France are being used to cover some nearby shipments. The conflict is rattling international grain markets. European wheat futures hit record highs last week as stalled shipments from Ukraine and Russia are likely. Those two countries and current adversaries account for nearly a third of world wheat exports and almost a fifth of global corn exports. The assault from Moscow led Ukraine to close its ports last week. Romania is a major grain supplier that exports through the Black Sea but outside the conflict zone, so buyers are looking there for backup purchases. Ukraine is a key wheat exporter to Middle Eastern and Mediterranean locations like Egypt, Turkey, Italy, and African countries. Ukraine’s corn customers include China, Spain, Iran, and South Korea. *********************************************************************************** NCGA Wins Ethanol Award from the Renewable Fuels Association The Renewable Fuels Association presented its 2022 Ethanol Industry Award to the National Corn Growers Association. The award was given in recognition of the group’s dedicated and sustained efforts on behalf of the ethanol industry over the past four decades. The award is the RFA’s highest recognition and was presented during the recent National Ethanol Conference in New Orleans. “RFA and NCGA have worked together for decades on policy, market development, research, and promotional efforts aimed at growing our nation’s ethanol industry,” says RFA boss Geoff Cooper. “NCGA CEO Jon Doggett was personally involved in the very early negotiations with RFA, the oil industry, and other Ag groups in an effort that ultimately led to the passage of the Energy Policy Act of 2005.” He also said that NCGA has worked together with RFA on countless research and ethanol promotion efforts, such as technical work, market development, exports, and many other initiatives. *********************************************************************************** Consumers Want Food Made from American Crops The United Soybean Board released results of a new survey highlighting consumer perceptions of U.S. soybeans, soybean farmers, and the American food supply chain. The survey shows consumer support of domestic agriculture continues to grow stronger, with 78 percent of consumers saying it’s important to buy U.S.-grown food, including soybeans. The 78 percent is an eight-percent increase from the last survey in December 2020. Other highlights from the study include U.S. farmers being the most trusted source when it comes to food safety, with 83 percent of consumers ranking them number one among members of the supply chain. The vast majority of consumers have a very/somewhat positive view of U.S. farmers who grow crops, including soybeans. Soy is seen as healthy by more than half of consumers, with 60 percent saying that soy-based food is somewhat/very healthy. 72 percent of respondents are more positive about soy because of its sustainability.
| Rural Advocate News | Monday February 28, 2022 |
Monday Watch List Markets After a weekend of fighting in Ukraine, traders will be quick to catch up on events and check the latest weather forecasts. USDA's weekly report of grain export inspections is at 10 a.m. CST and USDA issues its monthly report of ag prices at 2 p.m. Later Monday afternoon, DTN will report on February price averages for crop insurance purposes and what that means for this year's coverage terms. Weather Waves of showers are moving into the Pacific Northwest for the week. While there will be some showers near the U.S.-Canada border and also around Florida, much of the country's growing regions will remain dry on Monday. Warmer air spreading across the bulk of the country will cause snowmelt and increase drought stress for hard red winter wheat areas.
| Rural Advocate News | Friday February 25, 2022 |
USDA Commits $215 Million for Food Supply Chain Ag Secretary Tom Vilsack announced that the USDA will make available $215 million in grants and other support to make America’s food supply chain more resilient. The financing will help expand meat and poultry processing options, strengthen the food supply chain, and create jobs and economic opportunities in rural areas. The National Cattlemen’s Beef Association appreciates the effort to diversify the nation’s processing capacity. “Investing in packing capacity is critically important for the cattle industry,” says NCBA Director of Government Affairs and Market Regulatory Policy Tanner Beymer. “The expansion of regional processing facilities will bolster resiliency within the beef supply chain and help return marketing leverage to cattle producers.” USDA Rural Development will make $150 million available through the Meat and Poultry Processing Expansion Program. Another $40 million is available from the National Institute of Food and Agriculture for workforce development, and an additional $25 million will go to technical assistance. *********************************************************************************** Ukraine Shuts Down Ports After Russian Attack Ukraine’s military shut down commercial shipping operations at the country’s ports after Russia invaded Ukraine. Reuters said the announcement comes from an adviser to the Ukrainian president’s chief of staff and stoked fears of supply disruptions from one of the world’s top grain and oilseeds exporters. Ukraine is a major exporter of corn, much of which goes to China and the European Union. Ukraine also competes with Russia to ship wheat to major buyers like Turkey and Egypt. “The market is still trying to get a clearer picture of the actual military situation on the ground,” one European grain trader told Reuters. “According to the initial reports from shipping agencies, the ports in the Azov (A-zoff) and Black Seas don’t seem to have sustained much damage.” Egypt’s state grains buyer canceled an international purchase of wheat as the conflict led to reports that no offers of either Russian or Ukrainian wheat had been received. *********************************************************************************** High Input Costs Cut Down U.S. Corn Acres U.S. farmers will cut back on their corn acres this year by 1.5 percent and slightly increase their soybean acres this year because of the high cost of inputs. During the agency’s annual Ag Outlook Forum, USDA projected that high yields would bring in the biggest corn and soybean crops in history, which would likely pull down season-average prices for the two most widely planted crops in America. USDA says corn plantings will total 92 million acres, 1.4 million lower than in 2020. Soybean plantings will rise 88,000 acres to a total of 88 million this year. A corn crop of 181 bushels an acre would yield a record 15.24 billion bushels. Soybeans, with yields of 51.5 bushels per acre, would yield a record 4.49 billion bushels. Projected farm-gate prices were $5 a bushel for this year’s corn crop and $12.75 a bushel for soybeans. Wheat production will be 1.94 billion bushels at $6.80 a bushel. *********************************************************************************** Deadline Extended for Spot Market Hog Pandemic Assistance Pork producers who sold hogs through a spot market sale during COVID-19 now have until April 15 to submit applications for the USDA’s Spot Market Hog Pandemic Program. The original deadline to submit applications was February 25. The program assists pork producers who sold hogs through a spot market sale between April 16 and September 1 of 2020. During those months, producers faced the greatest reduction in market prices due to the pandemic. USDA is offering SMHPP in response to a reduction in packer production and supply chain issues due to COVID-19, which resulted in fewer negotiated hogs getting procured by processors and lower market prices. “In response to stakeholder feedback and our program analysis, we’ll be making adjustments to clarify the definition of a spot market sale and to hog eligibility while including documentation requirements to prevent erroneous payments,” says FSA Administrator Zach Ducheneaux. Visit farmers.gov/smhpp for more information. *********************************************************************************** Dairy Checkoff Collaborating with Mayo Clinic The dairy checkoff announced a five-year collaboration with Mayo Clinic to explore research and consumer outreach efforts to improve public health and advance dairy’s benefits. The memorandum of understanding with Mayo involves Dairy Management Inc., the National Dairy Council, and the Innovation Center for U.S. Dairy. “This is a milestone moment for dairy farmers who made this possible through their century-long commitment to research and dairy nutrition,” says DMI CEO Barbara O’Brien. The collaboration will research how dairy foods, particularly whole milk, impact cardiovascular health and metabolism. Other potential research areas include dairy’s impact on sleep, digestive health, and immunity. Content created by the collaboration will help debunk dairy myths and help consumers maintain confidence in dairy foods, farms, and businesses. “This collaboration illustrates the checkoff’s consumer-first focus and our commitment to leading with credible science,” says DMI Chair and Pennsylvania dairy farmer Marilyn Hershey. The collaboration will get incorporated across all four Mayo Clinic campuses. *********************************************************************************** Zoetis Support Program Benefits FFA Zoetis (Zo-EH-tis) recently announced the 2021 results of its Zoetis Industry Support Program, which donated more than $392,000 to more than 1,500 FFA Chapters around the country. Estimates show that approximately 33,000 FFA students benefitted from the contributions. This donation is part of the more than $600,000 the company contributes every year to support FFA. “This year marks the 15th year of the Industry Support Program,” says Jared Shriver, senior vice president of U.S. cattle and pork with Zoetis. “As a company, we are committed to the growth and development of future leaders in agriculture.” Veterinarians and animal health dealers and distributors make the Industry Support Program work by designating a portion of sales from eligible Zoetis Cattle and Equine products to the FFA chapters of their choice. Chapter advisers say the money helps offset the costs of travel and event expenses, classroom equipment and resources, community projects, purchasing blue jackets, scholarships, and SAE funding.
| Rural Advocate News | Friday February 25, 2022 |
Friday Watch List Markets Friday's reports start with January U.S. durable goods orders and U.S. personal incomes at 7:30 a.m. CST, followed by the University of Michigan's final reading of consumer sentiment in February at 9 a.m. USDA's cattle on-feed report for February 1 is due out at 2 p.m. Traders will remain focused on the latest weather forecasts and events in Ukraine. Weather The system that brought mixed precipitation to a good portion of middle America on Thursday continues to head east on Friday. Moderate to heavy mixed precipitation is expected in the Northeast, while the trailing cold front will bring some spotty showers to the Mid-Atlantic and Southeast. Snow is pulling east of Michigan Friday morning but some lake-effect snow may continue through the evening around the Great Lakes. Otherwise, cold and dry conditions continue to build west of the system.
| Rural Advocate News | Thursday February 24, 2022 |
Biden Administration Announces Port Infrastructure Funding The Biden Administration Wednesday announced $450 million in grant funding for port-related projects through the Port Infrastructure Development Program. The grants can help ports expand capacity and improve the movement of goods through U.S. supply chains. The Department of Transportation says the effort is the largest investment in the program ever, made possible by the Bipartisan Infrastructure Law, which will invest $17 billion in ports and waterways. Transportation Secretary Pete Buttigieg says, “We’re proud to announce this funding to help ports improve their infrastructure— to get goods moving more efficiently and help keep costs under control for American families.” The grants are awarded on a competitive basis to support projects that will improve the movement of goods to, through and around ports. Additionally, the Bipartisan Infrastructure Law calls upon applicants to explore ways to include projects that will improve goods movement while also strengthening resilience, reducing emissions and advancing environmental justice. *********************************************************************************** Food Prices Below Overall Inflation In 2021 Overall, food prices increased by an average of 3.9 percent in 2021 compared to 2020, the highest annual increase since 2008. USDA's Economic Research Service released new data Wednesday that shows food prices grew more slowly than "all items," but more quickly than all other of the "major groups" tracked by the U.S. Bureau of Labor Statistics. The Consumer Price Index for all items rose 4.7 percent in 2021. The food-away-from-home, restaurant purchases, increased 4.5 percent, compared with an increase of 3.5 percent for food-at-home - grocery stores or other purchases from food retailers. The highest price increases in food-at-home categories in 2021 were for beef and veal at 9.3 percent, pork at 8.6 percent, and fresh fruit 5.5 percent. Using the Consumer Price Index data, USDA researchers project overall food prices will increase between two and three percent in 2022. The Consumer Price Index for food increased 0.9 percent in January. *********************************************************************************** HPAI Found in Commercial Poultry Flock in Delaware The Department of Agriculture Wednesday announced another confirmed case of highly pathogenic avian influenza, or HPAI. USDA’s Animal and Plant Health Inspection Service confirmed the HPAI outbreak in a commercial poultry flock in New Castle County, Delaware. APHIS and state officials have quarantined the flock and will depopulate the birds. The announcement follows the previous confirmation of HPAI in a non-commercial backyard flock in Maine and New York late last week. Other confirmed HPAI outbreaks include sites in Kentucky, Virginia, Indiana, and North and South Carolina. Earlier this month, APHIS expanded wild bird surveillance for avian influenza to include the Mississippi and Central Flyways. USDA says anyone involved with poultry should review their biosecurity plan and enhance their biosecurity practices to ensure the health of their birds. In addition to practicing good biosecurity, all bird owners should prevent contact between their birds and wild birds and report sick birds or unusual bird deaths to state and federal officials. *********************************************************************************** Ag Senators Call on Administration to Strengthen Support for U.S. Biobased Economy Senate Agriculture Chair Debbie Stabenow this week called on the Biden administration to take steps to address the climate crisis by increasing federal investments in biobased products. The Michigan Democrat, joined by Minnesota Democrat Amy Klobuchar, made the request in a letter to Agriculture Secretary Tom Vilsack. The lawmakers say President Biden’s commitment to sustainable procurement is an opportunity to strengthen USDA’s BioPreferred program as the industry standard for sustainable procurement in government agencies. Stabenow and Klobuchar say renewable chemicals, biobased plastics, and other biobased products are effective tools in reducing the nation’s dependence on petroleum while creating markets for farmers. The lawmakers wrote,” Growing the biobased economy supports good paying jobs for American workers and positions American companies to continue to lead the world in biobased innovation.” They say growing the biobased economy also positions American companies to continue to lead the world in biobased innovation. *********************************************************************************** ASA Selects Gena Perry as WISHH Executive Director The American Soybean Association Wednesday announced Gena Perry as executive director of ASA’s World Initiative for Soy in Human Health program. Perry, who currently serves as project director-global strategy, will assume the new role February 28. Perry joined WISHH in 2019 as project director of WISHH’s USDA-funded Food for Progress poultry project in Ghana. Before joining WISHH, she lived and worked in West Africa for AgriCorps and 4-H Ghana. She steps into the position following Liz Hare, who was in the role since 2018 and continues to serve as a consultant to WISHH during the transition. Perry says, "I look forward to expanding our activities with U.S. soybean growers and our U.S. and international partners." The 22-year-old WISHH organization is now working in a record 28 countries in Asia, sub-Saharan Africa and Latin America. WISHH has a strong record of implementing programs with the support of state soybean organizations, the United Soybean Board and the Department of Agriculture. *********************************************************************************** MacKenzie Scott Donates $50 Million to National 4-H Council The National 4-H Council this week announced it received a $50 million gift from writer and philanthropist MacKenzie Scott. The gift from Scott, the ex-wife of Amazon founder Jeff Bezos, is the largest single donation ever to the National 4-H Council. Because of 4-H's expansive reach into every U.S. county, the investment will support youth development for millions of kids and families. Krysta Harden, National 4-H Council Board Chair, says, “This extraordinary gift is a rare and special occurrence,” adding, “With such a significant gift comes great responsibility.” Harden says 4-H will engage stakeholders to ensure the resources lift the diverse voices of young people. The gift builds upon the efforts of thousands of local Cooperative Extension 4-H educators, 500,000 volunteers, and millions of 4-H youth, alumni, and donors. The organization says the gift will sustain 4-H's commitment to ensuring all young people are empowered with the skills to lead for a lifetime.
| Rural Advocate News | Thursday February 24, 2022 |
Thursday Watch List Markets This week's holiday schedule pushed USDA's weekly export sales report to Friday, but weekly U.S. jobless claims, a report on fourth quarter U.S. GDP and an update of the U.S. Drought Monitor will all be out at 7:30 a.m. CST Thursday. The Energy Department's weekly natural gas storage report is due out at 9:30 a.m., followed by the weekly inventory report and January U.S. new home sales at 10 a.m. CST. Traders continue to put a lot of attention on Ukraine and the latest weather forecasts. Weather Snow, freezing precipitation and very cold conditions are in store for the central U.S. Thursday. Periods of snow will extend from the western Plains east through the Midwest. Meanwhile, a swath of freezing precipitation will produce a glaze of ice from the southeastern Plains to the southern Midwest. Northern areas have another day of harsh wind chill conditions, and the Mid-South is at risk for flooding from locally heavy rain.
| Rural Advocate News | Wednesday February 23, 2022 |
Study: Ethanol Industry Strongly Rebounded in 2021 In 2021, the U.S. ethanol industry “recovered substantially” from pandemic conditions, with ethanol and gasoline use approaching pre-COVID-19 levels in the second half of the year. A study on the industry by ABF Economics for the Renewable Fuels Association was released this week. With higher demand and value, ethanol’s contribution to U.S. gross domestic product in 2021 was the second-highest ever. In 2021, more than 73,000 U.S. jobs were directly associated with the ethanol industry, which supported an additional 334,200 indirect and induced jobs across all sectors of the economy. The industry created $28.7 billion in household income and contributed just over $52 billion to gross domestic product. Compared to 2020, this represented a 55 percent increase in income generated and a 50 percent increase in the contribution to GDP. The new report also shows that the ethanol industry spent nearly $38 billion on raw materials and goods and services to produce ethanol during 2021, with corn purchases alone accounting for more than $30 billion. *********************************************************************************** Growth Energy, EPA Reach Settlement on Deadline for Issuing 2021, 2022 RVO The Environmental Protection Agency agreed to file a notice in the Federal Register seeking comment on a proposed judicial consent decree that would require EPA to finalize the 2021 and 2022 Renewable Volume Obligations. The RVO’s are the subject of pending rulemaking due no later than June 3, 2022. The announcement is part of settlement discussions with Growth Energy, which filed multiple notices of intent to sue and a complaint in federal district court in response to the agency’s extended delay in issuing the RVOs. Growth Energy contends the delays are a direct violation of the deadlines established by Congress for the Renewable Fuel Standard program. Growth Energy CEO Emily Skor says, “This agreement is a significant milestone for the biofuels industry and reflects Growth Energy’s persistent efforts to hold EPA accountable.” The EPA Federal Register notice scheduled for publication Wednesday (today) provides 30 days for public comment from the date of publication. *********************************************************************************** Cattlemen’s Beef Board Releases 2021 Annual Report The Cattlemen’s Beef Board Tuesday released its 2021 Annual Report. The 2021 report includes information about projects and results within each of the organization's program areas, including promotion, foreign marketing, consumer information, industry information, research and producer communications. The report also contains a financial statement of assets, liabilities and net assets from September 30, 2020, to September 30, 2021. CBB CEO Greg Hanes says the annual report is “another example of the Checkoff’s ongoing efforts to be more transparent with the producers who invest in our programs.” Highlights in the report include 15 million views of the Beef in the Early Years educational content encouraging parents to consider beef as a first food for their children. The report also shows a 20 percent increase in export value compared to the previous record pace established in 2018. For more information about the Cattlemen’s Beef Board and the Beef Checkoff and to find the report, visit DrivingDemandForBeef.com. *********************************************************************************** USDA Finds Avian Influenza in Maine USDA’s Animal and Plant Health Inspection Service recently confirmed the presence of highly pathogenic avian influenza, or HPAI, in a non-commercial backyard flock in Maine. Samples from the flock were tested at the Cornell University Animal Health Diagnostic Center, part of the National Animal Health Laboratory Network, and confirmed at the APHIS National Veterinary Services Laboratories in Ames, Iowa. APHIS is working closely with state animal health officials in Maine on a joint incident response. State officials quarantined the affected premises, and birds on the properties will be depopulated to prevent the spread of the disease. Birds from the flock will not enter the food system. The Maine confirmation is the latest in several confirmed cases of HPAI in the United States. According to the U.S. Centers for Disease Control and Prevention, the recent HPAI detections in birds do not present an immediate public health concern. Additional information on biosecurity for non-commercial backyard flocks can be found at healthybirds.aphis.usda.gov. *********************************************************************************** Organic Dairy Farms See Slower Productivity Growth Than Conventional Organic dairy farm production growth is slower than conventional operations, according to new data from USDA’s Economic Research Service. Productivity is measured as total factor productivity, the ratio of the total amount of goods produced relative to all the inputs—such as labor, fertilizer, and other costs—used to produce those goods. USDA researchers studied the difference in total factor productivity growth between organic and conventional farms using data from organic dairy farms between 2005–16 and from conventional dairy farms between 2000–2016. Total factor productivity grew at an annual rate of 0.66 percent for organic dairy farms compared with 2.51 percent among conventional dairy operations. Both organic and conventional farms saw productivity growth due to technological progress such as advanced equipment and improved genetics. While weather-related feed factors reduced productivity for organic farms, they contributed to a productivity growth for conventional dairy farms. Technical efficiency increased productivity slightly on organic farms, but reduced productivity on conventional farms, while scale-and-mix efficiency reduced productivity for both types of farms. *********************************************************************************** Former Ag Secretary Perdue Sole Finalist for University System of Georgia Chancellor Former Agriculture Secretary Sonny Perdue is the sole finalist in the search for the next chancellor of the University System of Georgia. The decision follows a national search over the past year to lead the university system. USG's 26 public colleges and universities enroll more than 340,000 students and employ more than 48,000 faculty and staff to fulfill the system's teaching, research and service mission across the state. Board Chair Harold Reynolds says, “Perdue stood out for his impressive experience and leadership in public service as well as a vast understanding not only of Georgia and its communities.” Perdue adds, “I consider being named the finalist as the Chancellor of the University System of Georgia to be a wonderful capstone to a career of public service.” The Board began its national search in January 2021 and take action on the Chancellor position at a future board meeting, no sooner than 14 days from naming a finalist.
| Rural Advocate News | Wednesday February 23, 2022 |
Wednesday Watch List Markets There are no official reports on Wednesday's docket. The Energy Department's weekly inventory report is set for 10 a.m. CST Thursday as part of this week's holiday schedule. Traders will continue to keep a close watch on the latest weather forecasts and events in Ukraine. Weather A strong Arctic cold wave will cover the entire central U.S. Wednesday. We'll also see periods of snow from the southern Rockies east through the southern Plains, northern Delta and the southeastern Midwest with travel and safety hazards. Northern and central crop areas will have additional stress to transportation, safety and livestock conditions due to well below normal temperatures and moderate to strong winds.
| Rural Advocate News | Tuesday February 22, 2022 |
2021 U.S. Hemp Production Worth $824 Million The USDA’s National Agricultural Statistics Service released the results of the 2021 Hemp Acreage and Production Survey in the agency’s National Hemp Report. Planted area for industrial hemp grown in the open for all uses in the U.S. totaled 54,150 acres. The area harvested for all utilizations totaled 33,480 acres, and the value of U.S. hemp grown in the open totaled $712 million. The value of hemp production grown under protection was worth $112 million. The area grown under protection totaled 15.6 million square feet. “The data will help guide USDA in supporting domestic hemp production and will help producers make decisions on their operations,” says NASS Administrator Hubert Hamer. “The survey results may also impact policy decisions about the hemp industry.” Floral hemp production was estimated at 19.7 million pounds, with the average yield at 1,235 pounds per acre. Hemp grown for grain totaled 4.37 million pounds, with the average yield coming in at 530 pounds per acre. *********************************************************************************** India Makes Record U.S Soy oil Purchase Traders from India signed contracts to import a record 100,000 tons of soy oil from the U.S. Reuters says India made the buy because of limited supplies from drought-hit South America during a time when the price of rival palm oil is at record-high levels. The increased purchases from the U.S. are expected to support U.S. soy oil prices which are 20 percent higher this year and close to their highest point in ten years. India is the world’s biggest edible oil importer and usually buys from Argentina and Brazil. Lower soybean output in those two countries forced India to turn to the U.S. “Buyers in India have bought U.S. soy oil vessels,” says the head of a global trading firm in India who wished to remain anonymous because of company policy. “Prices were attractive, and there weren’t enough supplies in South America. Buying another two vessels is possible in the short term.” *********************************************************************************** USDA Extends Application Deadline for ReConnect Program USDA’s Rural Development Undersecretary Xochitl (So-CHEEL) Torres Small says the agency is extending the application deadline for funding under the ReConnect Program to March 9. The funds are intended to expand high-speed internet access to millions of people across rural America. “Today’s extension of the ReConnect Program deadline will help ensure that all applicants have the time they need to secure this critical funding,” Torres Small says. “I encourage all eligible parties to apply for this assistance.” USDA is making $200 million available in ReConnect Program loans, $250 million in loan/grant combinations, $350 million in grants with a 25 percent matching requirement, and $350 million in grants with no matching requirements for tribes and projects in socially vulnerable communities. In the coming months, USDA plans to begin making available an additional $2 billion in rural broadband funding allocated to USDA by the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law. *********************************************************************************** Deere Revenues Up While Net Income Drops in the First Quarter Deere and Company reported a net income of $903 million during the company’s first quarter that ended on January 30, or about $2.92 a share. That compares to a net income of $1.224 billion or $3.87 a share for the same time last year. Worldwide net sales and revenues increased five percent in the first quarter to $9.56 billion. Equipment operations and net sales were $8.53 billion for the quarter, compared with $8.05 billion in 2021. “Deere’s performance in the first quarter was impressive given production issues surrounding the delayed ratification of our UAW contract as well as persistent challenges posed by the supply chain and pandemic,” says Deere Chairman and CEO John C. May. “Those factors led to higher production costs during the quarter.” May also says the company will continue to work closely with key suppliers to manage the situation. Net income for Deere and Company is forecast between $6.7 and $7.1 billion. *********************************************************************************** Bayer Moving Forward on Short-Corn System Bayer recently announced it’s moving ahead on a short-stature corn project which will see test plantings on selected farmer fields in 2023. DTN says short-stature hybrids stand about a third to half the height of standard corn hybrids with an ear that sets about knee-high. The hybrids initially debuted in Mexico, and the company is now advancing the concept through their U.S. pipeline in three separate versions, which are traditional breeding, genetically engineered, and gene-edited. The company is making plans for U.S. farmers to get a look at the product in 2023 as Bayer works with a limited number of farmers. A broad commercial rollout is set for 2024. The idea behind creating the hybrids is plants that ideally use fewer resources and are easier to negotiate when in-crop applications of inputs are necessary. Shrinking the corn plant should improve stability and help it withstand extreme weather like high winds. *********************************************************************************** CDC says Extension Service Helping Rural America Get Vaccinated The Centers for Disease Control is expressing gratitude to the nation’s Cooperative Extension Service for helping address COVID-19 vaccine hesitancy in rural America. Extension educators have worked to raise awareness about the importance of getting vaccinated against COVID-19. “Rural America continues to get hit hard by COVID, and the lives of families and communities continue to feel the impacts,” says Dr. Carrie Castille, director of the National Institute of Food and Agriculture. “Because our communities are faced with making important decisions about vaccinations, having a trusted, independent community agent to aid in decision making is essential.” Cooperative Extension agents and educators are well placed to have that discussion and provide objective educational information. Through an interagency agreement with the CDC and NIFA, Cooperative Extension units at land-grant universities across the nation received funding to launch the Cooperative Extension Immunization Teaching and Engagement initiative to address health disparities among rural and underserved communities.
| Rural Advocate News | Tuesday February 22, 2022 |
Tuesday Watch List Markets Traders will return from the three-day weekend with new attention on the latest weather forecasts and keen to any news related to Ukraine. At 9 a.m. CST Tuesday, there is a report on U.S. consumer confidence in February, followed by USDA's weekly report of grain export inspections at 10 a.m. USDA's monthly cold storage report is set for 2 p.m. Weather A winter storm that started Sunday night across the Northern Plains expanded its scope a bit on Monday and will continue to do so on Tuesday. While the heaviest snows have already fallen, bands of moderate snow continue from the Northern Plains to the northern Midwest and a band of wintry mix will fill in this morning just to its south from northeastern Iowa through Lower Michigan. And farther south than that, widespread heavy rain and thunderstorms which may be severe across the Midsouth and Delta will expand the reach of the system farther. Flash flooding will also be a concern in those saturated soils across the Ohio and Tennessee Valleys.
| Rural Advocate News | Friday February 18, 2022 |
ARC/PLC Signup Deadline is March 15 Producers who have yet to enroll in the Agriculture Risk Management or Price Loss Coverage programs for the 2022 crop year must do so by March 15. The USDA programs provide vital income support to farmers experiencing a substantial decline in crop prices or revenues. “The ARC and PLC programs provide critical financial protections to many American farmers,” says Zach Ducheneaux (DOO-shah-know), administrator of the Farm Service Agency. “As producers continue to weather a pandemic and new climate-induced disasters, these programs are even more important.” Producers can elect coverage and enroll in ARC-County or PLC, which are crop-by-crop, or ARC-individual, which is for the entire farm. Although election changes for 2022 are optional, producers must enroll through a signed contract each year. If producers miss the deadline, the election remains the same as the 2021 election for crops on the farm. Farmers have completed 54 percent of the expected 1.8 million contracts so far. *********************************************************************************** U.S. Biofuel Stresses Biofuel Successes in Testimony U.S. biofuel industry backers told lawmakers that the nation’s renewable fuel mandates are good for farmers, national security, and the environment. The supporters defended the Renewable Fuel Standard as the Biden administration considers changes to the program. The program is good for the nation’s farmers, but the oil industry says the mandates are too expensive. “The RFS remains the nation’s most successful clean energy policy,” said Growth Energy CEO Emily Skor during the congressional hearing. “Let me be clear on this. There is no path to net-zero emissions by 2050 without biofuels.” Reuters says other advocates called the RFS “crucial support” for American farmers and it reduces the need for energy imports. The Environmental Protection Agency is reviewing the RFS and intends to announce potential changes to the program by May. “As much as the Biden administration dreams of all-electric vehicles, the reality is liquid fuels are here to stay,” says Senator Joni Ernst of Iowa. *********************************************************************************** Students Celebrate Agriculture and Leadership During FFA Week More than 735,000 FFA members across the country will share the story of agriculture as part of National FFA Week. The week starts on Saturday, February 19, and culminates on Saturday, February 26. “National FFA Week is an important week for members across the country, as not only do we celebrate the organization, but we share the message of FFA and agriculture,” says National FFA Advisor Dr. James Woodard. “FFA chapters across the country celebrate agriculture while thanking their supporters.” Woodard also says FFA and agricultural education continue to play a key role in not only developing the next generation of leaders but also developing those who will be filling the ever-growing need in the talent pipeline. FFA members will share agriculture with fellow students and their communities while also giving back to their communities through service projects. The six national officers will also connect with chapters around the country. *********************************************************************************** U of Minnesota Building Precision Ag Research Complex The University of Minnesota is planning a $220 million research complex near Austin, Minnesota, to study precision agriculture. The university says the goal is to put the state on the cutting edge of farm and food technology. Plans for the Future of Advanced Agricultural Research Minnesota (FAARM) center includes fields, research and innovation space, and workforce development efforts. “This will expand our vision and scope for the work we already do,” says Brian Buhr, Dean of the College of Food, Agricultural, and Natural Resources. Research at the complex will pursue scientific solutions to adapt and delve into artificial intelligence, robotics, and other technologies alongside a focus on “health intersections between people, animals, crops, plants, soil, water, and the environment.” The project already has a $60 million funding commitment from Hormel Foods and will look for a combination of state, public, and private funds to cover the rest of the cost. Development is expected to take five years. *********************************************************************************** Registration Information for the 2022 World Pork Expo The World Pork Expo is back at the Iowa State Fairgrounds in Des Moines, June 8-10. The event’s 34th year is presented by the National Pork Producers Council. The World Pork Expo will draw thousands of producers and industry professionals for three days of networking, education, innovation, and free pork as well. “We’re delighted to welcome everyone back to World Pork Expo,” says NPPC President Jen Sorenson. “This year’s Expo has an exceptional lineup of programming, including educational seminars and luncheons.” People at the World Pork Expo venue will get the chance to explore more than 360,000 square feet of exhibition space. In previous years, over 700 vendor booths presented and displayed products in the trade show space. “We continue to be the world’s largest pork-specific trade show,” says Doug Fricke, Expo director of trade show marketing for NPPC. Registration information will soon be available online for those who plan to attend. *********************************************************************************** USDA Announces Reopening Schedule Senior leadership in the USDA will be back in their offices on February 28. Keith Gray, associate administrator of the Risk Management Agency made the announcement during the Crop Insurance Industry’s Annual Convention. The Hagstrom Report says mid-level staff will be expected to return by March 28, and all staff will be moved in by May 27. “But we aren’t coming back in the traditional sense,” Gray says. “We’re going to be hybrid, largely remote.” How much time RMA employees spend in the office will also depend on local conditions. The office has been 100 percent telework, but Gray says working that way hasn’t slowed them down. “In some cases, remote work has improved our response time,” Gray says. “We are going to hold everyone accountable.” Ag Secretary Tom Vilsack says USDA will have a policy of maximum telework, which means they can work remotely eight out of every ten days.
| Rural Advocate News | Friday February 18, 2022 |
Friday Watch List Markets A report on U.S. existing home sales in January is due out at 9 a.m. CST Friday, the same time as the January report of U.S. leading indicators. Traders will keep an eye on the latest weather forecasts and don't be surprised if trading in grains is a little jumpy Friday, ahead of the three-day weekend, while Russia's military remains a threat to Ukraine. Weather With the big winter storm almost out of the country this morning, the focus turns to a clipper system moving across the U.S.-Canada border. Precipitation with it is overall fairly light, but the winds with the system are strong. Even with the lighter snowfall amounts, everything will be blowing around, causing travel hazards and potential blizzard conditions. While most areas of the country have seen temperatures fall from where they were 24 hours ago, the clipper system is bringing along some warmer temperatures to portions of the Northern Plains.
| Rural Advocate News | Thursday February 17, 2022 |
USTR Releases Annual Report on China's WTO Compliance China failed to reach the Phase One Agreement commitments to purchase U.S. goods and services, including agricultural commodities. The U.S. Trade Representative's office revealed the data in a more than 70-page report Wednesday. The annual review states, "The reality is that this Agreement did not meaningfully address the more fundamental concerns that the United States has with China's state-led, non-market policies and practices and their harmful impact on the U.S. economy." While the report focused on China's World Trade Organization compliance, it covered agricultural trade. USTR says China's implementation of the agricultural commitments in the Phase One Agreement has been generally positive, however, there has been a notable lack of meaningful action in other areas, including agricultural biotechnology and a required risk assessment for the use of ractopamine in the production of beef and pork. And the report finds China remains a difficult and unpredictable market for U.S. agricultural exporters, largely because of inconsistent enforcement of regulations and selective intervention in the market by China’s regulatory authorities. *********************************************************************************** Dairy Groups: New FDA Commissioner Needs to Address Misuse of dairy Labels Dairy industry organizations urge the new Food and Drug Administration Commissioner to stop the mislabeling of imitation dairy foods. Edge Dairy Cooperative, The International Dairy Foods Association and the National Milk Producers Federation, all congratulated Dr. Robert Califf’s (kay-liff) on his confirmation this week. Califf is a cardiologist who served as the FDA commissioner in the last year of the Obama administration. During his nomination hearing, when asked about plant-based foods using dairy terms, Califf responded, “There is almost nothing more fundamental about safety than people understanding exactly what they're ingesting.” Edge Dairy Cooperative President Brody Stapel says, “The simple fact that the new commissioner has acknowledged that, is a big step in the right direction.” NMPF President and CEO Jim Mulhern stated, “We look forward to working with Dr. Califf as he resolves this long-standing, and growing, concern.” IDFA President and CEO Michael Dykes added, “IDFA and our member companies are hopeful for a more collaborative relationship with FDA on matters of food safety, food standards, labeling, and nutrition and health.” *********************************************************************************** NASDA Announces Priorities for the 2023 Farm Bill State agriculture officials this week announced their priorities for the upcoming 2023 Farm Bill discussion. The National Association of State Departments of Agriculture will direct its policy advocacy efforts regarding the bill towards ten specific policy areas. At the hybrid 2022 NASDA Winter Policy Conference this week, members laid the foundation for those priorities. NASDA wants to focus its attention on agriculture research, animal disease, conservation and climate resiliency, cyber security and food safety. Other priorities include hemp, invasive species, local food systems, Specialty Crop Block Grants and trade promotion. NASDA CEO Ted McKinney says, “The next Farm Bill must remain unified, securing a commitment to American agriculture and the critical food and nutritional assistance programs for those who need it most.” McKinney adds that NASDA members are often the officials closest to farmers themselves. As co-regulators with the federal government, they are uniquely positioned to lead impact and direct policymaking solutions for the 2023 Farm Bill. *********************************************************************************** USDA: Ag Productivity Increased as Hours Worked Declined Agricultural output in the United States nearly tripled between 1948 and 2017 even as the amount of labor hours-worked declined by more than 80 percent. USDA’s Economic Research Service says the opposing trends resulted in an increase in labor productivity growth in the U.S. farm sector. Labor productivity, calculated as average output per unit of labor input, is a popular measure for understanding economic growth. ERS estimates agricultural output per worker grew by 16 times from 1948 through 2017. At the same time, agricultural output per hour worked grew even faster, by 17 times, implying that average hours worked per worker declined. Labor productivity estimates can vary based on different ways labor is measured. One factor in the increased labor productivity is the quality of labor, measured by attributes such as age, gender, and the highest level of education a worker has reached. ERS researchers estimate that changes to farmworker attributes accounted for about 13 percent of growth in hourly-based annual labor productivity during the time studied. *********************************************************************************** Oceans May Rise One Foot By 2050 Along U.S. Coasts The United States is expected to experience as much sea-level rise by the year 2050 as it witnessed in the previous hundred years. That's according to a NOAA-led report updating sea level increases for the United States. The Sea Level Rise Technical Report provides the most up-to-date projections for all U.S. states and territories by decade for the next 100 years and beyond. The report projects sea levels along the coastline will rise an additional 10-12 inches by 2050, with specific amounts varying regionally. At least two feet of sea-level rise is likely by 2100, but NOAA says reducing emissions now can lower future risk. NOAA Administrator Rick Spinrad says, “This is a global wake-up call and gives Americans the information needed to act now to best position ourselves for the future.” The report also finds that the sea level rise expected by 2050 will create a profound increase in the frequency of coastal flooding, even in the absence of storms or heavy rainfall. *********************************************************************************** National FFA and Syngenta partner for inaugural Executive in Residence The National FFA Organization is partnering with Syngenta to lay the foundation for a national equity, diversity and inclusion strategy. The strategy will impact members, staff, leadership and directly influence the organization’s programs, services and events. Recognizing the importance of an Equity, Diversity & Inclusion strategy, National FFA partnered with Syngenta to develop the inaugural Executive in Residence program. Syngenta’s North America Diversity and Inclusion Lead Brandon Bell will serve as the executive in residence for organizational development and culture as a part of the partnership. Bell will help FFA create a framework to implement and measure the organization's ED&I goals. Bell has partnered with leaders to design, deliver, and implement equity, diversity, and inclusion interventions for a decade. National FFA CEO Scott Stump says, “We want to ensure our current and future members feel welcomed, and FFA is indeed a place for all to feel valued and contribute to our mission."
| Rural Advocate News | Thursday February 17, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, along with weekly jobless claims, January housing starts and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage is due out at 9:30 a.m. The latest weather forecasts and any news regarding Ukraine continue to get traders' attention. Weather A strong storm system in the southeastern Plains will move northeast throughout the day on Thursday. Very warm and moist air ahead of the system will feed heavy rainfall rates that could induce flooding near and just north of the Ohio River and colder temperatures will turn the northern edge of that band into a mix of freezing rain, sleet, and snow. To the south of the storm track, conditions will favor potential for severe storms with the greatest threat centered around Mississippi and western Tennessee that includes strong wind gusts and tornadoes.
| Rural Advocate News | Wednesday February 16, 2022 |
USDA Trade Mission Underway in Dubai Foreign Agricultural Service Administrator Daniel Whitley arrived in Dubai Tuesday to launch the Department of Agriculture’s first trade mission since November 2019. Whitley is kicking off the trade mission for Agriculture Secretary Tom Vilsack, who arrives in Dubai on Friday, with a delegation of representatives from U.S. agribusinesses, farm organizations, and state agriculture departments interested in exploring export opportunities across the Middle East. Whitley says, “I am thrilled that USDA trade missions are back, and I am honored to lead such a dynamic group of U.S. agribusinesses and representatives to the UAE.” With annual agricultural exports averaging more than $1.2 billion during the last five years, the United States is the UAE’s fourth-largest supplier of food and farm products and is poised for further export growth. Trade mission participants will engage directly with potential customers, receive in-depth market briefings, and participate in site visits, including Expo Dubai 2020. *********************************************************************************** Grain Dust Explosion Incidents Decreased in 2021 The annual report recording nationwide grain dust bin explosions reported seven incidents in 2021, down from eight in 2020. Kingsly Ambrose, Purdue University associate professor and author of the report, says that despite the decrease in explosions from the previous year, one fatality and five injuries were reported. The ten-year average for explosions stands at 8.0, down from 8.1 in 2020. The explosions occurred in one feed mill, one ethanol plant, one grain mill and four grain elevators. The probable ignition sources were identified as one case of a fire, two incidences of smoldering grain, while four cases were from unknown sources. The dust explosions occurred in six different states, with two occurring in Minnesota, one in Georgia, one in Idaho, one in Indiana, one in Iowa and one in Oregon. Ambrose says keeping good maintenance of equipment to ensure proper working order and properly training workers are measures to help eliminate grain dust explosions. *********************************************************************************** Center for Rural Affairs Applauds Recent Crop Insurance Improvements The Center for Rural Affairs applauds expansions to federal crop insurance recently announced by USDA’s Risk Management Agency. The changes signal encouraging opportunities for farmers practicing conservation on their operations, according to the organization. This month, RMA announced it will be offering the Pandemic Cover Crop Program for a second year. The program offers a $5 per acre discount on a producer’s crop insurance premium if they planted a qualifying cover crop ahead of their 2022 crop. If a cover crop variety is reportable to the Farm Service Agency, it is eligible for the program. To receive the benefit, producers must have a Report of Acreage form filed for their cover crops by March 15, also the crop insurance sales closing date for most spring crops. Kate Hansen with the Center for Rural Affairs says, "Producers across the country are implementing new conservation practices to better steward their land,” adding, “These recent developments from RMA to support these efforts are encouraging.” *********************************************************************************** USDA extends due date for National Agricultural Classification Survey USDA’s National Agricultural Statistics Service wants recipients of the National Agricultural Classification Survey to know that there is still time to respond. Mailed last December to more than a million potential U.S. agricultural producers, the survey collects data on agricultural activity and basic farm information. The data will be used to build a survey recipient list for the 2022 Census of Agriculture. Response to the survey is required by federal law for all who receive the questionnaire, even if the recipient is not an active farmer or rancher. Questionnaires can be completed securely online at agcounts.usda.gov, by mail or phone. This week, USDA NASS extended the response deadline to March 7. Filling out the NACS is one of the most important steps to determining who should receive the Census of Agriculture questionnaire this fall, according to USDA. All information reported to USDA NASS is kept confidential, protected by federal law. *********************************************************************************** Southwest Megadrought Region’s Driest in at 1,200 The megadrought in the Southwest represents the driest period for the region since at least the year 800. Research from the University of California – Los Angeles finds the current drought has exceeded the severity of a late-1500s megadrought that previously had been identified as the driest such drought in the 1,200 years that the scientists studied. A megadrought is classified as a drought lasting two decades or longer. Climate models have shown that the current drought would have been dry even without climate change, but not to the same extent. Human-caused climate change is responsible for about 42 percent of the soil moisture deficit since 2000, according to UCLA. The research says one of the primary reasons climate change is causing more severe droughts is that warmer temperatures are increasing evaporation, which dries out soil and vegetation. The study was a collaboration among researchers from UCLA, NASA and the Columbia Climate School. *********************************************************************************** Culvers Celebrates National FFA Week with Essay Contest As National FFA Week approaches, Culver’s is celebrating its relationship with the organization of future agriculture leaders by launching its eighth annual FFA Essay Contest. Culver's longstanding relationship with FFA is part of its Thank You Farmers Project, an initiative that aims to celebrate and advocate for the role of farming in creating a more resilient and sustainable world. Three winners will be selected, earning prizes of $7,500, $5,000 and $2,500 for their FFA chapters to pursue additional educational projects and initiatives. Culver's has awarded over $100,000 in prizes to contest finalists since 2015. This year's prompt is: Agriculture impacts the world in so many ways, Share three ways the industry is making a positive difference that you want people to know about. Written essays, 1,000 words or less, and videos, five minutes or less, will be accepted at culvers.com/essaycontest until the deadline of April 11, 2022. National FFA Week begins this Saturday.
| Rural Advocate News | Wednesday February 16, 2022 |
Wednesday Watch List Markets A report on January U.S. retail sales is due out at 7:30 a.m. CST Wednesday, followed by the Federal Reserve's report on industrial production at 8:15 a.m. At 9:30 a.m., the U.S. Energy Department will update its weekly inventory report, including ethanol production. At 1:30 p.m., the Federal Reserve releases its minutes from the latest FOMC meeting. Traders will continue to watch over the latest weather forecasts and show interest in any news regarding Ukraine. Weather A frontal boundary draped from the Southern Plains into the Midwest is going to become active later on Wednesday with rain showers popping up. Colder air working in behind the front will change the northern edge of the showers to a wintry mix of freezing rain, sleet, and snow. Moderate to heavy rain continues through Thursday and could cause some flooding in spots, mostly across the southern Midwest into the eastern Great Lakes. Bouts of severe weather will also be possible over the next couple of days across the Southern Plains, Midsouth, and Gulf Coast regions
| Rural Advocate News | Tuesday February 15, 2022 |
USDA Releases Resource Guide for Rural Entrepreneurs The Department of Agriculture Monday unveiled a resource guide to help rural businesses grow and expand the rural economy. The guide features information on how rural entrepreneurs can use USDA and other federal programs to access financing and other assistance to help start and expand their businesses. Rural Development Undersecretary Xochitl (SOH-cheel) Torres Small says the guide will "enhance American competitiveness around the world to meet the challenges of the 21st century by equipping rural entrepreneurs with the tools they need to succeed." The guide includes tools to help rural businesses expand access to capital, create value-added agriculture products, access high-speed internet and cut energy costs. The guide also includes sources on access to health care resources, workforce development and training opportunities. Finally, the guide features firsthand stories from Rural Development customers on ways USDA programs and services have helped them start or expand businesses. The guide is available on USDA’s Rural Development website, rd.usda.gov. *********************************************************************************** Ag Bankers Optimistic For 2022 Farmland values continued to increase rapidly through the end of 2021. Alongside sustained strength in farm income and credit conditions, the value of all types of farmland in the Tenth Federal Reserve Bank District was more than 20 percent higher than a year ago. Lenders reported a mostly favorable outlook for agriculture in the district but cited the rise in input costs as a risk to the sector. Even with uncertainty around input costs, lenders expect favorable economic conditions to support farm finances and lead to further gains in farmland values in 2022. The possibility of weaker agricultural income and higher interest rates remain risks for farmland markets. Despite the risks, the agricultural sector appears to be well-positioned for the year ahead, supported by strong balance sheets, high commodity prices and sharp gains in farmland values. The Tenth District includes parts of Missouri and New Mexico, and all of Colorado, Kansas, Nebraska, Oklahoma and Wyoming. *********************************************************************************** Survey Suggests U.S. Producers to Plant 12 Million Acres of Cotton in 2022 U.S. cotton producers intend to plant 12 million cotton acres this spring, up 7.3 percent from 2021, according to the National Cotton Council. NCC’s Annual Early Season Planting Intentions Survey shows upland cotton intentions are 11.9 million acres, up 7.1 percent from 2021. Extra-long staple cotton intentions of 158,000 acres represent a 24.8 percent increase. The NCC questionnaire, mailed in mid-December 2021 to producers across the 17-state Cotton Belt, asked producers for the number of acres devoted to cotton and other crops in 2021 and the acres planned for the coming season. Survey responses were collected through mid-January. The detailed survey results were announced during the 2022 National Cotton Council Annual Meeting. Although cotton prices are higher than in recent years, higher input prices and supply chain disruptions have resulted in significant increases in production costs for 2022. As a result, many producers continue to face difficult economic conditions heading into 2022. *********************************************************************************** AEM Releases January 2022 Equipment Sales Numbers Overall ag tractor sales in the U.S. and Canada continued rising into January 2022, while sales of combine harvesters slowed for the month. The Association of Equipment Manufacturers recently released its monthly sales report for farm equipment. The report shows U.S. total farm tractor sales gained 1.5 percent for the month of January compared to 2021, while U.S. combine sales for the month fell 41.4 percent to 205 units sold. In Canada, sales of tractors for the month of January were up 6.3 percent overall. Combine harvesters were also down in Canada, falling 30 percent to 49 units sold. The data continues the sales trend that started in June of 202 and reliably remained above the five-year average since. AEM’s Curt Blades says, “The strength of ag markets and farmers seeing the value in the new technologies on offer is driving demand.” However, Blades adds, lingering effects of the supply chain remain a concern. *********************************************************************************** US Annual Cocoa and Choleate Imports Valued at $5 billion The United States annually imports more than $5 billion worth of cocoa and chocolate products, according to new data from USDA's Economic Research Service. With cocoa beans only grown abroad, trade is critical to meet the U.S. consumer’s fondness for cocoa-based treats. Imported shipments of chocolate and other food preparations containing cocoa were the largest share of imports and were valued at almost $2.8 billion a year between 2017 and 2021. The import value of cocoa beans averaged more than $1.1 billion annually over the five-year period. Cocoa butter shipments, principally supplied by Indonesia and Malaysia, were valued at $576 million annually, while supplies of cocoa paste averaged about $293 million a year. Cocoa beans, the raw seeds from the cacao tree that are processed into derivative products, were imported mostly from the Ivory Coast, Ecuador, and Ghana. The United States also exports chocolate and cocoa products to Canada and Mexico. *********************************************************************************** Russia-Ukraine Issue Driving Fuel Prices Higher For the seventh straight week, the nation's average gas price climbed, up 4.6 cents from a week ago to $3.47 per gallon. The national average is up 16.5 cents from a month ago and 97.2 cents per gallon higher than a year ago. The national average price of diesel increased 8.9 cents in the last week to $3.87 per gallon, the highest since July 2014. The jump in gasoline prices continues as oil prices continue to push higher, reaching $94 per barrel last week on continued concern over the possible imminent threat that Russia may invade Ukraine. GasBuddy’s Patrick De Haan says, “I see no other potentials in the short term but additional price increases unless Russia does an about-face on Ukraine.” Beyond that, seasonal issues will push prices further higher, including the multi-month transition to summer gasoline. U.S. retail gasoline demand rose last week as stations refueled after major winter storms boosted demand.
| Rural Advocate News | Tuesday February 15, 2022 |
Tuesday Watch List Markets The U.S. Labor Department's January reading of producer prices will be out at 7:30 a.m. CST Tuesday and will probably repeat inflation concerns. The National Oilseeds Processors Association will have its soybean crush report for January later Tuesday morning and another big total is expected. USDA's Livestock, Dairy and Poultry Outlook is also due out Tuesday. Traders will keep an eye on the latest weather forecasts and any news regarding Ukraine. Weather A clipper system will move through Canada Tuesday, bringing its cold front through much of the Plains and into the Midwest while a storm system builds in the Southwest. But before the weather turns nasty on Wednesday, winds will increase across the Plains and portions of the Midwest. The increased winds pose a fire risk for areas that remain rather dry.
| Rural Advocate News | Monday February 14, 2022 |
Ag Groups Disappointed in Gray Wolf Decision The National Cattlemen’s Beef Association and the Public Lands Council expressed opposition to the U.S. District Court’s ruling to remand and vacate the Endangered Species Act Delisting of the gray wolf. The Trump Administration delisted the gray wolf in 2020. “It’s disappointing that environmental activism carried more weight than science in this case,” says Kaitlynn Glover, Public Lands Council Executive Director. The PLC and NCBA say data clearly shows the gray wolf population has recovered and no longer meets the requirements for listing. American Farm Bureau President Zippy Duvall says his group is extremely disappointed in the ruling returning the wolf to the endangered species list. “The gray wolf exceeded recovery goals and should be celebrated as an Endangered Species Act success story,” Duvall says. “The ESA is not intended to promote permanent protected status for animals that are now thriving, and this ruling ignored ESA goals and threatens recovery efforts for other animals.” *********************************************************************************** Economist Sees Good Things Ahead for Farm Economy A Wells Fargo economist predicted a rosy future ahead for American commodities during the next several years. Michael Swanson says the only thing that could seriously derail that prediction is the weather. The Hagstrom Report says Swanson spoke at the Crop Insurance and Reinsurance Bureau’s annual meeting. He says, “Life is good now, and the prices should remain high up to 2025.” Swanson did say that fertilizer prices aren’t sustainable at their current highs. The economist also says that farmers have to be disciplined in what they’re paying to rent land and not agree to rents so high that they can’t make a profit. The value of U.S. farmland has risen from $1 trillion in 2020 to $2.7 trillion this year. As far as the overall economy, Swanson says it’s “very, very strong.” If interest rates rise to 3.5 percent and inflation drops, businesses should be able to make adjustments. *********************************************************************************** Ag Groups Sue EPA Over Chlorpyrifos A group of U.S. agricultural organizations had filed a lawsuit against the Environmental Protection Agency over chlorpyrifos (Klor-PEER-ah-fahs). DTN says the 21 groups want the agency’s pending ban on the product to be halted and eventually revoked. The lawsuit was filed as the EPA will finalize its rule revoking the food tolerances for the insecticide on February 28. That will effectively ban U.S. farmers from legally using the product. The rule was issued by the Biden EPA in August 2021. The ag groups filed a series of petitions asking the judge to issue a stay halting the EPA’s pending ban until the lawsuit can be reviewed. The lawsuit itself asks the judge to vacate the EPA’s rule revoking food residue tolerances based on the harm to agriculture and the EPA’s history of re-registering and approving the insecticide. This is the second attempt by ag groups to halt the EPA’s final rule banning chlorpyrifos. *********************************************************************************** Crop Insurance Premium Benefit Available for Cover Crops Producers who have coverage under most crop insurance policies are eligible for a premium benefit from the USDA if they planted cover crops during the 2022 crop year. Producers must report their cover crop acreage by March 15 if they want to receive the benefit from this year’s Pandemic Cover Crop Program. PCCP helps farmers maintain their cover crop systems despite the financial challenges posed by COVID-19. “Cultivating cover crops requires a sustained, long-term investment, and the economic challenges of the pandemic made it financially challenging for many producers to maintain cover crop systems,” says RMA Administrator Marcia Bunger. “Producers use cover crops for a variety of agronomic benefits, and this program will reduce producers’ overall premium bill to help ensure they can continue this climate-smart agricultural practice.” PCCP was first offered in 2021, and producers with crop insurance received $59.5 million in premium subsidies for 12.2 million acres of cover crops. *********************************************************************************** American Lamb Industry Evaluating Carbon Footprint The American Lamb Board is working with Michigan State University to evaluate the environmental footprint of the U.S. sheep industry. The goal is to get accurate and robust data to contribute to this important issue. The initial focus of the study defines a comprehensive model of greenhouse gas emissions for the diverse array of U.S. sheep production systems, including range, farm flock, pasture, intensive, and feedlot. MSU will conduct a partial life cycle analysis of lamb production in these types of operations to quantify GHG emissions. The American lamb industry entered the spotlight when a 2011 Environmental Working Group Study said lamb is one of the largest contributors of GHG emissions. “It is extremely important for our industry to identify and evaluate our role in GHG emissions,” says Lamb Board Chair Peter Comino of Wyoming. “Accurate data is the basis for improvement strategies and providing factual information to consumers and the media.” *********************************************************************************** Wheat and Soybean Export Sales Rise The USDA says export sales of wheat and soybeans rose while corn sales declined during the week ending on February 3. Wheat sales that week totaled 84,800 metric tons, up 48 percent compared to the previous week. That number was still down 75 percent from the prior four-week average. The Philippines was the top buyer at 34,600 metric tons, while Mexico finished second at 33,100 tons. Weekly exports hit almost 381,000 tons, which was one percent lower than the prior week. Soybean sales rose 46 percent to 1.6 million metric tons during the week, a gain of 81 percent from the previous four-week average. Unknown countries bought 804,000 metric tons and China purchased 298,000 tons. Weekly exports dropped one percent to 1.3 million tons. Corn sales dropped to 589,000 metric tons, 50 percent lower than the previous week and 43 percent under the average. Mexico bought 370,000 metric tons and Japan purchased 347,500 tons.
| Rural Advocate News | Monday February 14, 2022 |
Monday Watch List Markets Traders will be watching for any change in the Ukrainian situation over the weekend and early Monday, along with the latest weather forecasts. USDA's weekly grain export inspections report is due out at 10 a.m. CST and is the only official report on Valentine's Day. Weather Areas east of the Rockies will find rather quiet conditions Monday but a storm moving into the Pacific Northwest will make for some big changes throughout the week. Most notably, heavier precipitation will develop across the Southeastern Plains up through the Northeast later this week.
| Rural Advocate News | Friday February 11, 2022 |
2021 Beef Exports Shatter Records American beef exports shattered previous volume and value records in 2021, surpassing $10 billion for the first time. Analysis from the U.S. Meat Export Federation shows pork exports finishing slightly below the record level of 2020 but setting a new value record, surpassing $8 billion for the first time. December beef exports totaled almost 125,000 metric tons, up one percent from last year, while value jumped 33 percent higher to $992 million. These results pushed the 2021 total to 1.44 million metric tons. Beef exports to Korea, Japan, China, and Hong Kong each exceeded $2 billion, setting new volume and value records. December pork exports dropped 17 percent from 2020, finishing at 215,900 metric tons. The value was 12 percent lower at $604 million. For the year, pork export volume hit 2.92 million metric tons, two percent lower than the 2020 record. However, the export value did rise five percent higher to a record $8.11 billion. *********************************************************************************** Administration Considering New Tariffs on China Over Phase One Deal The Biden administration is looking at the possibility of new tariffs on China if they can’t persuade Beijing to live up to its failed commitments under the Phase One trade deal. Reuters says the administration is looking at other possibilities, including a closer working relationship with allies to present a united front against China. Myron Brilliant, the U.S. Chamber of Commerce’s head of international affairs, says the goal would be to find ways to level the playing field for international firms that deal with China. U.S. trade data shows that China came up well short of its required purchases under the phase one deal, meeting only 60 percent of its total purchasing goals. China’s Commerce Ministry says the U.S. should “cancel tariffs on China to create a favorable environment for trade.” Brilliant says the Chamber supports talks with China but also says there are vehicles the administration can use to take action. *********************************************************************************** Ethanol Production Hits Four-Month Low The Energy Information Administration says ethanol production plunged to its lowest level in four months during the week ending February 4. Production dropped under one million barrels a day, finishing the week with an average of 994,000 barrels. That’s down from 1.041 million barrels a day during the previous week and the lowest level since the week ending on October 1, 2021. The nation’s largest-producing region is the Midwest, where output dropped to an average of 939,000 barrels a day from the 981,000 during the prior week. That’s the lowest production level in the Midwest since last October. Gulf Coast production declined by 20,000 barrels a day, while the Rocky Mountain region stayed steady at 15,000 barrels a day. The East Coast region was the only one to increase, averaging 12,000 barrels a day, up from 11,000 the previous week. Ethanol inventories during the week ending on February 4 declined to 24.79 million barrels. *********************************************************************************** Applications Open for the Voices of the Future Program The American Soybean Association is accepting applications for the Valent Ag Voices of the Future Program. The program is July 11-14 and runs in conjunction with the summer ASA Board Meeting and Soy Issues Forum in Washington, D.C. The Ag Voices of the Future Program is for students interested in improving their understanding of major agricultural policy issues, the importance of advocacy, and careers that can impact agricultural policy. The class size is limited, and students must be at least 18 years old by July 11 to apply. Two students from this year’s program will also have an opportunity for a $1,600 academic scholarship, complimentary registration, including the hotel stay, to the Agriculture Future of America Leadership Conference, and up to $500 reimbursement for travel expenses to the AFA. To apply for the program and be considered for a scholarship to the AFA Leaders Conference, visit the ASA website for information. *********************************************************************************** RIPE Opportunity for Farmers on Climate Change The conversation is growing about American agriculture’s role in mitigating climate change. The nonprofit Rural Investment to Protect our Environment offers producers a way to lead on environmental sustainability while boosting their bottom line. Rather than waiting to see what takes place, farmers and ranchers can take part in developing and advancing the RIPE 100 program. It’s a proposed bipartisan climate policy that would benefit producers and the public. “There’s a lot of talk about how to get farmers and ranchers involved in climate change mitigation,” says RIPE Board President and farmer Curt Mether. “I support RIPE because it offers a voluntary solution with a good incentive for participating.” The research-backed RIPE 100 plan will fairly compensate producers for the environmental value they provide through stewardship practices. RIPE 100 includes $100 per acre or animal unit payments for carbon sequestration and several other environmental practices. More information is at RIPEroadmap.org. *********************************************************************************** Deadline Extended for Dairy Sustainability Awards Nominations For over ten years, the U.S. Dairy Sustainability Awards program has celebrated dairy farms, businesses, and partnerships for their dedication to advancing sustainability across the industry. The nominations period for the 2022 U.S. Dairy Sustainability Awards has been extended to March 4. The farmer-founded Innovation Center for U.S. Dairy launched the awards to honor exceptional farms, businesses, and partnerships for their socially responsible, economically viable, and environmentally sound practices and technologies that have a broad and positive impact. “The Sustainability Award winners epitomize the best of dairy sustainability and ingenuity, providing useful case studies for the dairy community as it moves forward to meet industrywide commitments,” says Barbara O’Brien, President and CEO of Dairy Management Inc. and the Innovation Center for U.S. Dairy. Award submissions can be made at usdairy.com, and there is no fee to enter. All farms, companies, and organizations involved in the dairy industry are eligible to submit nominations.
| Rural Advocate News | Friday February 11, 2022 |
Friday Watch List Markets At 9 a.m. CST Friday, the University of Michigan's early index of consumer sentiment for February will be posted, the only official report of the day. Traders continue to monitor the latest weather forecasts, watch for any news of export sales and keep an eye on events surrounding Ukraine. Weather A clipper system moving along the U.S.-Canada border Friday has its cold front dropping south through the Northern Plains and Upper Midwest Friday morning. The front will continue southeast throughout the day with falling temperatures in the Plains and rest of the Midwest. Showers will remain fairly spotty with the system and a mix of rain and snow. Some breezy winds have developed behind the front as well and continue across the Northern Plains and Upper Midwest through the afternoon.
| Rural Advocate News | Thursday February 10, 2022 |
USDA Released February WASDE Report The latest World Agriculture Supply and Demand report largely focused on global market conditions. The Department of Agriculture noted weather concerns in South America with lower soybean harvest projections for Argentina and Brazil. This month’s U.S. soybean outlook projects increased soybean crush and lower ending stocks. Soybean crush is forecast at 2.2 billion bushels, up 25 million from last month on favorable crush margins. The U.S. season-average soybean price for 2021/22 is forecast at $13.00 per bushel, up 40 cents from last month, partly reflecting the impact of drought in South America. This month’s U.S. corn outlook is for higher production, greater food, seed, and industrial use, lower exports, and larger ending stocks. The season-average corn price received by producers was unchanged at $5.45 per bushel. The outlook for U.S. wheat this month is for stable supplies, lower domestic use, reduced exports, and higher ending stocks. The projected season-average farm price increased $0.15 per bushel to $7.30. *********************************************************************************** APHIS Announces Final Strategic Framework for Enhancing Surveillance for SARS-CoV-2 USDA’s Animal and Plant Health Inspection Service Wednesday announced the final Strategic Framework outlining how the Agency will advance surveillance of SARS-CoV-2. USDA says early detection and response to pathogens with zoonotic potential while still in animals is essential in limiting or preventing human outbreaks. Additionally, the Agency has launched a new website to help stakeholders and the public stay up to date on the Agency’s broad array of ongoing One Health initiatives and COVID-19 surveillance projects. These projects are funded by the $300 million provided by the American Rescue Plan Act. In August 2021, APHIS announced its proposed Strategic Framework to guide surveillance for emerging and zoonotic diseases in susceptible animals and build an early warning system to alert public health partners to potential threats. APHIS Administrator Kevin Shea says, “The final Strategic Framework builds on APHIS’ proven expertise preparing for and responding to foreign animal disease outbreaks.” *********************************************************************************** USDA Data Tracks Fertilizer Price Increases Data from USDA’s Economic Research Service details the increase in fertilizer prices. Fertilizer represents an average of 36 percent of a farmer’s operating costs for corn, 35 percent for wheat, and 30 percent for sorghum, according to estimates by USDA. Fertilizer prices declined from 2014 through 2017 before a gradual increase in 2019. In late 2021, prices began to spike alongside rising natural gas prices—a primary input in nitrogen fertilizer production. By December 2021, the average monthly spot prices of natural gas at the Henry Hub distribution hub in Louisiana were 45 percent higher than in December 2020. U.S. farmers use three primary forms of nitrogen fertilizer: anhydrous ammonia, urea, and liquid nitrogen. ERS estimates an annual price increase of 235 percent for anhydrous ammonia, 149 percent for urea, and 192 percent for liquid nitrogen as of December 2021. Researchers expect the spike in fertilizer prices to affect producer decisions going into the 2022/23 marketing year. *********************************************************************************** Farm Bankruptcies Down Dramatically in 2021 A new Market Intel analysis from the American Farm Bureau Federation finds Chapter 12 farm bankruptcy filings were down 50 percent in 2021. The number of Chapter 12 filings in 2021 is the lowest in the last decade, and this is the first time in at least ten years that there were fewer than 300 filings. For 2021, 276 Chapter 12 bankruptcies were filed across the nation. The decrease in bankruptcy filings is a noteworthy shift, according to Farm Bureau, given the significant increases in the number of bankruptcies over the previous three years. However, the analysis notes that returns to farm operators have been incredibly volatile over the last decade, ranging from $58.6 billion to $134.5 billion between 2012 and 2021. USDA projects 2022 returns at $95.2 billion. And, while the last year has brought higher commodity prices for some, it has certainly brought higher input costs for all. *********************************************************************************** Growth Energy to White House: “Maximize Biofuels to Ease the Pain at the Pump” Growth Energy CEO Emily Skor sent a letter to President Biden this week urging him to turn to higher biofuel blends to combat high gas prices. At a February 4th press conference, White House Press Secretary Jen Psaki said that the administration “will continue to look at options that can be done to lower gas prices for the American people.” Skor urged the president to “maximize biofuels to ease the pain at the pump” by working with his administration to restore the year-round sale of E15. Skor writes, “Biofuels like ethanol should be an essential part of our nation’s solution to reduce our dependence on foreign oil.” The Supreme Court refused to hear an appeal from biofuel groups last month to reinstate year-round E-15. Available at more than 2,500 gas stations across 31 states, E15 is approved for more than 96 percent of light-duty vehicles on the road and sells for upwards of $0.10 less per gallon compared to conventional gasoline. *********************************************************************************** EIA Forecast: Brent Crude at $88 per barrel First Half of 2022 The U.S. Energy Information Administration forecasts that the Brent crude oil price will average $90 per barrel in February and nearly $88 per barrel for the first half of this year. In its February Short-Term Energy Outlook, EIA estimates that commercial oil inventories fell to their lowest levels since mid-2014, contributing to current high prices. There are several factors at play. EIA Acting Administrator Steve Nalley says, “Market concerns about oil production disruptions, supply chain vulnerabilities, and uncertainties around how central banks may react to combat inflation all contribute to a highly unpredictable environment for oil and petroleum product prices.” The average price for regular-grade gasoline was $3.31 per gallon in January, nearly a dollar higher than one year ago, largely because of higher oil prices. EIA expects gasoline prices will average $3.24 per gallon in 2022, before dropping below $3.00 per gallon in the last quarter of the year.
| Rural Advocate News | Thursday February 10, 2022 |
Thursday Watch List Markets USDA's weekly exports sales report is due out at 7:30 a.m. CST, the same time as weekly jobless claims, the Labor Department's consumer price index for January and an update of the U.S. Drought Monitor. The Energy Department's weekly report of natural gas storage is set for 9:30 a.m., followed by a Treasury report on the federal budget for January at 1 p.m. Traders continue to keep tabs on the latest weather forecasts. Weather A clipper system will bring a band of moderate to heavy snow across the northern stretches of the country Thursday and Thursday night with more isolated to scattered showers to the rest of the Northern Plains and Corn Belt. The cold front to the system will push south through the northern tier of the country overnight, with much colder temperatures setting up in the Midwest over the weekend. Some showers will develop behind this boundary across the High Plains late tonight and Friday, but amounts will be light. Winds will be strong at times across the Northern Plains as well.
| Rural Advocate News | Wednesday February 9, 2022 |
Agricultural Exports Shattered Records in 2021 U.S. Agriculture posted its highest annual export levels ever recorded in 2021. The final 2021 trade data published by the Department of Commerce Tuesday shows that exports of U.S. farm and food products totaled $177 billion. The total beat the 2020 figure by 18 percent and eclipsed the previous record set in 2014, by 14.6 percent. Agriculture Secretary Tom Vilsack says, "These record-breaking trade numbers demonstrate that U.S. agriculture is incredibly resilient." The United States' top ten export markets saw gains in 2021, with six of the ten – China, Mexico, Canada, South Korea, the Philippines and Colombia – setting new records. Worldwide exports of many U.S. products, including soybeans, corn, beef, pork, dairy, distillers grains and pet food, also reached all-time highs. China remained the top export destination, with a record $33 billion in purchases, up 25 percent from 2020, while Mexico inched ahead of Canada to capture the number two position with a record $25.5 billion, up 39 percent from last year. *********************************************************************************** USDA Extends Dairy Margin Coverage Program Deadline The Department of Agriculture Tuesday extended the deadline to enroll in Dairy Margin Coverage and Supplemental Dairy Margin Coverage for 2022. The deadline to apply for coverage is now March 25, 2022. USDA’s Farm Service Agency opened signup in December 2021 to help producers manage economic risk brought on by milk price and feed cost disparities. FSA Administrator Zach Ducheneaux (DOO-shu-know) says, “We are encouraging dairy operations to take advantage of the extended deadline and join the 8,900 operations that have already enrolled for 2022 coverage.” Enrollment for 2022 DMC is currently at 55 percent of the 2021 program year enrollment. Producers who enrolled in DMC for 2021 received margin payments each month, January through November, for a total of $1.2 billion, with an average payment of $60,275 per operation. Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. For more information, dairy producers should contact their local USDA Service Center. *********************************************************************************** Senator Marshall Expresses Concerns Over USDA Climate Initiative Senator Roger Marshall has concerns about the Department of Agriculture’s Climate-Smart Agriculture and Forestry Partnerships Initiative. The Kansas Republican penned a letter to Agriculture Secretary Tom Vilsack following his announcement of the program. While reaffirming his support for conservation efforts in agriculture, Marshall is questioning the use of Commodity Credit Corporation funds for the program. In the letter, Marshall says, “it seems USDA is crafting its own farm bill by using the CCC to create its own programs and priorities that haven’t been established by congress and to fund projects only USDA deems worthy.” Vilsack announced the program Monday that will invest $1 billion to finance pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices. Specifically, practices that reduce greenhouse gas emissions or sequester carbon. Marshall requested answers to a list of eight questions, including seeking meeting notes from the most recent CCC board meeting approving funding for the program. *********************************************************************************** Bipartisan Legislation to Increase Access to Rural Broadband A group of agriculture-state lawmakers introduced the Connect Unserved Americans Act this week. The bipartisan legislation seeks to ensure the Department of Agriculture targets funding through the ReConnect Program to areas most in need of reliable broadband services. Additionally, it would enhance the coordination between federal agencies disbursing broadband funding to prevent the overbuilding of existing broadband networks at the taxpayer's expense. South Dakota Republican John Thune, one of the lawmakers who introduced the legislation, says, "Our bipartisan legislation would help bridge the digital divide by ensuring federal broadband funding goes to truly unserved areas." In October 2021, Thune and Minnesota Democrat Tina Smith co-led a bipartisan letter urging Agriculture Secretary Tom Vilsack to continue to grant awards to areas where there is a higher percentage of unserved households. The lawmakers also asked Vilsack to increase USDA's coordination efforts with other agencies administering broadband programs, and give equal treatment to all applicants. *********************************************************************************** USDA Seeks Nominations for Members to Science and Research Advisory Board The Department of Agriculture is soliciting continuous nominations for membership to its National Agricultural Research, Extension, Education, and Economics Advisory Board and its committees. The board is comprised of 15 members representing a specific category of U.S. agricultural stakeholders. The board’s three committees include the Specialty Crop Committee, Citrus Disease Subcommittee and National Genetic Resources Advisory Council. USDA expects to appoint or reappoint approximately 15 new board and committee members in October 2022. A USDA spokesperson says, "We are looking for professionals with diverse perspectives, backgrounds and scientific expertise to ensure research on our nation's food and agricultural systems is fair and equitable and benefits all Americans." The advisory board provides feedback to the Secretary of Agriculture, USDA's research mission area, and land-grant colleges and universities on food and agricultural research, education, extension and economics priorities and policies. Nomination packages may be received continually until September 30, 2022, and should be sent by email to nareee@usda.gov. *********************************************************************************** Nation's Largest Trout Producer to Feed Benson Hill Soybeans Benson Hill recently announced a partnership with Riverence, the largest land-based producer of steelhead and rainbow trout in the U.S., to feed the fish with Benson Hill soy ingredients. Benson Hill says the move will enhance the sustainability of aquaculture supply chains. The company's proprietary soybean varieties expressing Ultra-High Protein and low anti-nutrient levels reduce the need for processing steps to concentrate protein levels. The ingredients derived from Ultra-High Protein varieties demonstrate equivalent performance to a Soy Protein Concentrate-based diet in salmon and trout, as measured by Feed Conversion Ratio. Benson Hill's proprietary ingredients will be incorporated into the aquaculture diets manufactured by Riverence's preferred supplier Rangen, a brand of Wilbur-Ellis Nutrition. Aquaculture provides over half of the seafood for human consumption globally and is the fastest-growing food production sector. According to the Food and Agriculture Organization, aquaculture is expected to overtake capture production in 2027 and account for 52 percent of all fish production for all uses by 2030.
| Rural Advocate News | Wednesday February 9, 2022 |
Wednesday Watch List Markets The U.S. Energy Department's weekly inventory report is due out at 9:30 a.m. CST with attention on ethanol production and an inventory level that has been rising lately. At 11 a.m., USDA releases its February WASDE report and traders will be eager to see new estimates of South American crops. If there are no big surprises, traders will likely go back to watching the latest weather forecasts. Weather A clipper moving through Canada will be close enough to produce some isolated showers across the Midwest on Wednesday. Another disturbance will do the same going through the Northern then Central Plains. Precipitation amounts will be light in both cases while temperatures remain warm for this time of year.
| Rural Advocate News | Tuesday February 8, 2022 |
USDA to Invest $1 Billion in Climate Smart Commodities The Department of Agriculture Monday announced $1 billion in partnerships to support America’s climate-smart farmers, ranchers and forest landowners. The new Partnerships for Climate-Smart Commodities opportunity will finance pilot projects that create market opportunities for U.S. agricultural and forestry products that use climate-smart practices and include innovative, cost-effective ways to measure and verify greenhouse gas benefits. Agriculture Secretary Tom Vilsack made the announcement during a stop at Lincoln University in Jefferson City, Missouri. Vilsack says, “USDA will provide targeted funding to meet national and global demand and expand market opportunities for climate-smart commodities to increase the competitive advantage of American producers.” Funding will be provided to partners through USDA’s Commodity Credit Corporation for pilot projects to provide incentives. USDA is accepting project applications for fiscal year 2022. A range of public and private entities may apply, and the primary applicant must be an entity, not an individual. More information is available at USDA.gov. *********************************************************************************** FACA Applauds USDA Investment in Climate-Smart Pilot Projects The Food and Agriculture Climate Alliance strongly commends USDA for advancing a voluntary, incentive-based approach to deploy climate-smart practices on working lands through its Partnership for Climate-Smart Commodities. Announced Monday, members of the Alliance welcome USDA’s plan to partner with farmers, ranchers, forest owners and nongovernmental organizations through pilot projects. The alliance stressed in previous comments submitted to USDA the importance of building flexibility into the initiative to acknowledge that agriculture and forestry look very different in different regions, and USDA’s plan appears to welcome a diversity of practices and approaches. The plan also includes other priorities of the alliance, including an effort for engaging and enrolling Black, Indigenous, People of Color and small farmers, ranchers, and forest owners in the project. The alliance says in a news release, “We share Secretary Tom Vilsack’s optimism that this approach will support climate-smart commodities while unlocking new market opportunities.” The Food and Agriculture Climate Alliance is comprised of more than 80 member organizations. *********************************************************************************** NASDA Asks EPA to Suspend Action on WOTUS Rulemaking As many farm and agriculture groups submitted comments on the EPA's proposed changes to the Waters of the U.S. rule, The National Association of State Departments of Agriculture asked the EPA to suspend the rule-making process. The comment period on the proposal by the Environmental Protection Agency closed Monday. In NASDA’s comments sent to EPA, CEO Ted McKinney urged the EPA and the Army Corps to suspend further action until guidance from the Supreme Court is provided. McKinney stated, "Unfortunately, the proposed rule will return us to the ambiguity of past regulation as well as the federal overreach that ignored the role and expertise of state partners.” NASDA calls the change “unacceptable,” and urges the EPA and the Corps to reconsider the clarity and the undeniably appropriate level of protection offered by the Navigable Waters Protection Rule. In addition to the submitted comments, NASDA members, farmers, ranchers and the agriculture industry have repeatedly advocated for clarity and reasonableness in the regulatory definition of WOTUS. *********************************************************************************** Imported Seafood Products have the Most Pathogen/Toxin Violations USDA’s Economic Research Service says about 70 percent of pathogen violations came from two sources over the last 20 years. Food imported into the United States from other countries may contain pathogens such as bacteria or toxins, which are mostly produced by microorganisms. From 2002 to 2019, a total of 22,350 pathogen violations occurred from imported foods, and a majority from fishery and seafood products and the spices industry. Fishery and seafood products had 9,857 pathogen violations over this period, accounting for 44.1 percent of the total refused imports. This category was followed by spices, flavors, and salts, which had 5,886 violations, or 26.3 percent of the total. Cheese and cheese products accounted for 7.1 percent of the total, followed by fruits and fruit products with 6.2 percent, nuts and edible seeds with 5.1 percent, and vegetable products with 4.1 percent. In total, the top six food industries accounted for 93 percent of the total pathogen violations over the period. *********************************************************************************** USDA Announces Four New Members of the National Organic Standards Board The Department of Agriculture last week announced the appointment of four new members to the National Organic Standards Board. The board includes 15 volunteer members representing the organic community. The new members will serve five-year terms, through January 2027. Organic farmer Elizabeth Graznak (Graze-nack) of Missouri joins the board on the environmental protection and resource conservation seat. USDA Appointed Allison Johnson of the Natural Resources Defense Council to a public interest or consumer interest group seat. Meanwhile, Dr. Dilip Nandwana (nand-wand-dee) of Tennessee State University will serve on the scientist seat of the board, and Javier Zamora of California’s JSM Organics takes a seat on the board as an organic farmer. The National Organic Standards Board is a Federal Advisory Board established under the Organic Foods Production Act of 1990. The board assists in developing standards for substances used in organic production and advises the Secretary on aspects of the National Organic Program. *********************************************************************************** Fuel Prices Spike as Oil Surge Continues For the sixth straight week, the nation’s average gas price is up, rising eight cents from a week ago and stands at $3.42 per gallon. The national average is up 12.3 cents from a month ago and 97.5 cents per gallon higher than a year ago. The national average price of diesel increased 8.3 cents in the last week and stands at $3.78 per gallon, the highest since September 2014. Gas prices saw their sharpest rise in months last week as oil surged to $93 per barrel, on continued concerns over Russia invading Ukraine and that there won’t be enough supply to meet demand come this summer. GasBuddy’s Patrick De Haan says, “Motorists should expect even more price increases, with the larger jumps coming later this spring as a confluence of seasonal factors and the potential flare up in geopolitical tensions.” De Haan adds the national average could be pushed to record territory by the start of the summer driving season.
| Rural Advocate News | Monday February 7, 2022 |
Ocean Shipping Reform Act Introduced in Senate Minnesota Democrat Amy Klobuchar and South Dakota Republican John Thune introduced the Ocean Shipping Reform Act into the Senate last week. It’s the Senate’s response to the House version that passed by a wide bipartisan vote in December. Farm groups and other industry stakeholders are complaining that ships coming to the West Coast from Asia are going back to China and its neighbors empty. Those ships are heading back to Asia to bring more goods to get sold in the U.S and not picking up products they would normally take to Asian customers. A trade association executive told the Hagstrom Report that the Senate bill in some instances is stronger than the House bill. However, some aspects are weaker, but if it gets passed, it will help improve the overall supply chain situation. Klobuchar says the bill would “prohibit ocean carriers from unreasonably declining opportunities for U.S. exports, as determined by the Federal Maritime Commission in a new required rulemaking.” *********************************************************************************** Minnesota Cattleman is New NCBA President Don Schiefelbein (SHEEF-el-byne) of Minnesota is the new president of the National Cattlemen’s Beef Association. The central Minnesota native was named to the post during the 2022 Cattle Industry Convention in Houston. Schiefelbein and his family run a seed stock breeding and cattle feeding operation in Kimball, Minnesota. “I’m very fortunate to have been involved in the cattle industry through several avenues and have seen the positive results when people come together,” he says. “As incoming NCBA president, I will continue bringing people together for the benefit of the industry.” As he looks ahead to his year as president, Schiefelbein is serious about helping lead NCBA’s fight for policies and a business climate that supports cattle-producing families and their opportunity to make a living on the land. The 2022 officer team took office at the end of this year’s convention. Todd Wilkinson of South Dakota was named president-elect, and Mark Eisele of Wyoming was elected vice president. *********************************************************************************** USDA, Justice Department Launch Online Anti-Competition Reporting Tool Farmers and ranchers can now anonymously report potentially unfair and anti-competitive practices in the livestock and poultry sectors. The USDA and the Justice Department launched an online tool to make it easier for farmers to file those reports. “This new online tool will help USDA and the Justice Department address anti-competitive actions and create livestock and poultry markets that are fair to our nation’s producers,” says Ag Secretary Tom Vilsack. “I encourage producers who are aware of potential violations of competition laws to submit information to the portal so we can take appropriate actions to create more competitive markets in the agricultural sector.” The online reporting tool is at farmerfairness.gov. Vilsack calls it a “one-stop-shop” to report violations of competition laws that will allow the departments to collaborate early, vigorously enforce the law, and ensure economic opportunities and fairness for everyone. Users can submit information with or without their names and contact information. *********************************************************************************** Missouri River Basin Runoff Forecast Low in 2022 The updated 2022 runoff forecast for the Missouri River basin above Sioux City, Iowa, continues to be below average. “Despite January’s runoff being slightly above average, we expect 2022 runoff to remain below average,” says John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Basin Water Management Division. “Both plains snowpack and mountain snowpack continue to lag behind seasonal averages, and soil moisture continues to be much drier-than-normal.” January runoff in the Missouri River Basin above Sioux City was just under one million acre-feet, 111 percent of average. Runoff was near-average due to warmer-than-normal temperatures in the upper Basin. Precipitation in January was below normal for most of the upper-basin except for North Dakota, which saw above-normal precipitation. “The Corps is aware of the importance of our operations to the water supply,” Remus adds. “There is and will be enough water in the river to serve the water-supply needs.” *********************************************************************************** Alberta Cattle Ranchers Worried About Border Disruptions Groups representing ranchers and feedlot operators in Alberta are concerned that ongoing border disruptions may hurt an agricultural sector already struggling from COVID-19. A days-long demonstration is tied to an ongoing nationwide protest over federal rules for unvaccinated or partially-vaccinated truckers coming into Canada from the U.S. Several trucks have blocked the border crossing into the U.S., although protestors opened one lane going in each direction last week. The CBC says only limited amounts of traffic are getting into Montana. The Alberta Beef Producers, the Alberta Cattle Feeders’ Association, and the Canadian Cattlemen’s Association spoke out last week, calling for a “timely resolution and the restoration of our essential supply chain.” In a joint statement, the groups say, “Every day the industry is unable to move cattle, beef, or access feed, puts the entire supply chain at risk.” Before the protest, the Alberta ag sector had dealt with trucking shortages and limited rail access. *********************************************************************************** USDA Issues Transitional Nutrition Standards for Schools The USDA announced updates to the school nutrition standards that give schools a path forward. The agency says these actions support the dedicated school meal program operators who provide critical nutrition to millions of children every day at school. The new standards begin in the school year 2022-2023 and continue through the following school year. The new requirements allow schools and childcare providers to serve one percent low-fat milk, as well as nonfat flavored milk and nonfat or low-fat unflavored milk. At least 80 percent of the grains served in school lunches and breakfasts each week must be whole-grain rich. The weekly sodium limit for school lunches and breakfasts will remain at the current levels for 2022-2023, and the school lunch limit will drop 10 percent the following year in 2023-2024. All of the other nutrition standards, including fruits and vegetable requirements, will remain the same as the 2012 standards.
| Rural Advocate News | Monday February 7, 2022 |
Monday Watch List Markets Traders will come back from the weekend, checking for any changes in the latest forecasts or situation in Ukraine. USDA's weekly report of export sales is due out at 10 a.m. CST and there is a report on U.S. consumer credit for December at 2 p.m. USDA's next WASDE report is set for Wednesday at 11 a.m. CST. Weather Colder temperatures still reside across the Midwest, but warmth will be spreading through the Plains and points eastward throughout the week. Drier conditions are also expected until a clipper grazes the northern extent of the country Tuesday night and Wednesday.
| Rural Advocate News | Friday February 4, 2022 |
Food Prices Rise in January World food prices rose during January and remained near ten-year highs. The United Nation’s Food and Agricultural Organization vegetable oils pushed prices higher. Reuters says the Food Price Index tracks the most globally-traded food commodities. The index averaged 135.7 points in January, up from 134.1 during December. higher food prices are contributing to a wider surge in inflation as global economies try to bounce back from COVID-19. The FAO says those higher prices are a risk to the poor populations in countries that have to bring in most of their food. The vegetable oils index rose 4.2 percent month-on-month in January to reach a record level. The push higher in vegetable oils came from reduced availability of exports and other supply-side constraints like labor shortages and weather challenges. In a statement, the FAO’s Markets and Trade Division says, “There is a concern that the impacts of these constraints will not ease quickly.” *********************************************************************************** USDA Provides Disaster Assistance Update USDA provided an update on the upcoming disaster assistance at this week’s Cattle Industry Convention. The assistance is for agricultural producers impacted by weather-related disasters in 2020 and 2021. “Over the past two years, as agricultural producers struggled with the ongoing impacts of COVID-19, they’ve also been hit hard by more frequent and intense natural disasters,” says Robert Bonnie, USDA Undersecretary for Farm Production and Conservation. USDA intends to streamline the process for producers, and the agency will distribute at least half the available $750 million by the end of March. The program to to assist crop producers will follow a process similar to that of the livestock assistance with the first phase of implementation this spring. The first phase will use existing Federal Crop Insurance or Noninsured Crop Disaster Assistance Program data as the basis for calculating initial payments. That will help speed up implementation and encourage participation in these programs too. *********************************************************************************** NCBA Unhappy with JBS Court Settlement The National Cattlemen’s Beef Association is upset with a court settlement reached by JBS as part of a class-action lawsuit against the four biggest meatpackers in the U.S. DTN says the court case and the $52.5 million settlement involves price-fixing and the four meatpackers constraining the fed cattle supply. The NCBA wants to find out what happened to the industry’s demands for a federal investigation into beef markets going back to 2019. They’re looking for more transparency from the Justice Department. Iowa Senator Chuck Grassley, a co-author of the Cattle Price Discovery and Transparency Act, says the settlement is a “spit in the ocean” for JBS compared to its record profits during COVID-19. “The settlement confirms what cattle producers have been telling me when they try to get a fair price in the marketplace,” Grassley says. “It’s time to put an end to these price-fixing schemes by the Big Four once and for all.” *********************************************************************************** Optimism for the Future of the Cattle and Beef Industry The National Cattlemen’s Beef Association heard domestic and international leaders who spoke during the Cattle Industry Convention and NCBA Trade Show. Ag Secretary Tom Vilsack, Undersecretary Robert Bonnie, and British Ambassador Dame Karen Pierce expressed optimism about the future of the cattle and beef industries. Vilsack committed to addressing challenges that producers are facing regarding the supply chain, processing capacity, and drought. Bonnie, the Undersecretary for Farm Production and Conservation, recognized the industry’s role in conservation and that cattle producers play a critical role in environmental stewardship goals. Pierce shared her optimism in strengthening the relationship between the United Kingdom and the United States through continuing negotiations to reach a free trade agreement. As the U.K. places high importance on sustainable beef production, Pierce says she’s confident in the sustainability goals set last year by the NCBA. “We see tremendous opportunities between the two countries,” says NCBA Vice President of Government Affairs Ethan Lane. *********************************************************************************** Factors Behind Wheat Market Volatility U.S. Wheat Associates says wheat prices since late December have bounced up and down so far in the new year. The ongoing tension between Russia and Ukraine is a big factor adding uncertainty and volatility to the wheat market. Both countries are major grain exporters, and the market knows that any disruption there could quickly impact supply. Another factor in the significant volatility is commercial futures. The managed money funds take quick profits that pressure the market. However, speculators also appear to be bullish in their wheat outlook primarily because of ongoing weather challenges. Moisture is needed to put the winter wheat crop on a good footing, which means the weather will remain a driver in the wheat market. Railroad performance is another obstacle as, since December, railroad logistics have slowed down. All grain shipments during the week ending January 15 were 11 percent lower than in 2021. Weekly rail traffic was down seven percent compared to last year. *********************************************************************************** Food Safety on Super Bowl Sunday During the Super Bowl on February 13, the USDA wants to remind football fans to be careful with their food. “Anytime friends and families get together for the big game, please remember to keep food safety in mind,” says Ag Secretary Tom Vilsack. Unlike other holidays when meals are consumed rapidly, Super Bowl fans often snack throughout the game. Perishable foods like chicken wings and meatballs can only be left out for two hours before bacteria begin to multiply to illness-causing levels. Safety tips include washing hands for 20 seconds before and after handling raw meat and poultry. Use separate cutting boards, plates, and utensils to avoid cross-contamination. Confirm that foods are cooked at a safe temperature and chill foods that aren’t consumed immediately after cooking. Use a food thermometer to make sure cooked foods hit the appropriate internal temperature. Discard perishable foods if they’re left out longer than two hours.
| Rural Advocate News | Friday February 4, 2022 |
Friday Watch List Markets The U.S. Labor Department will release its reports of nonfarm payrolls and unemployment at 7:30 a.m. CST Friday, both for January. Traders will continue to watch the latest weather forecast and for any news of an export sale or has happened Thursday, news of a sales cancellation. Weather The winter storm system that has been affecting the country through most of this week is finally making a push toward the East Coast and out of the country on Friday. Cold temperatures behind the system will cause dangerous wind chills and black ice formation that will cause travel hazards for areas that have seen significant rain and snow this week.
| Rural Advocate News | Thursday February 3, 2022 |
NCBA Releases 2022 Policy Priorities During the 2022 Cattle Industry Convention and NCBA Trade Show, the executive committee of the National Cattlemen’s Beef Association approved the organization’s 2022 policy priorities. The priorities include an emphasis on strengthening the economic, environmental and social sustainability of the cattle industry. The policy priorities include improving market leverage and opportunities through increased access to market data and risk management tools for producers, and securing the future of the beef industry by protecting tax provisions, limiting regulatory burdens on farms and ranches, and leveling the playing field for producers. Also included is boosting the resiliency of the beef supply chain by addressing labor shortages, improving processing capacity, expanding technology, strengthening transportation, and achieving key cattle industry priorities in the 2023 Farm Bill. NCBA President-elect Don Schiefelbein says, “We are addressing the long-term needs of the cattle industry and advancing policies that will contribute to business success, economic growth and respect for our way of life.” *********************************************************************************** CattleFax Forecasts Positive Profitability Trends in 2022 Cattle price and profitability trends for producers are pointed in the right direction, even as challenges and uncertainty persist, according to CattleFax. The CattleFax Outlook at the 2022 Cattle Industry Convention provided a market analysis to attendees Wednesday. While issues around labor and packing capacity have lingered, both are expected to improve in the year ahead. Expansions in capacity combined with strong global and domestic consumer beef demand suggest increased profitability across segments, signaling a market that is healthier and more stable in the year ahead, according to CattleFax. Kevin Good of CattleFax reported that U.S. beef cow inventories have fallen more than 700,000 head from last year and are off nearly 1.6 million from cycle highs. This year, the beef cowherd will near 30.1 million head. The feeder cattle and calf supply will be 675,000 head smaller than last year, totaling 25.5 million head. Fed cattle slaughter will decline 400,000 head lower compared to last year, at 25.7 million head. *********************************************************************************** Lawmakers Urging Biden Administration to Prioritize Renewable Fuel Standard Legislators in Washington, D.C., this week urged the Environmental Protection Agency to prioritize the Renewable Fuel Standard by maintaining the blending requirements for 2022. The lawmakers also urged the EPA to deny all pending Small Refinery Exemptions, eliminate proposed retroactive cuts to the renewable volume obligations and set the 2021 RFS volumes at statutory levels. Led by Senators Chuck Grassley, an Iowa Republican, and Amy Klobuchar, a Minnesota Democrat, the lawmakers made the request in a letter to the EPA. Following the requests by the lawmakers, the letter says, “the EPA can quickly restore integrity, stability, and growth to the RFS and the U.S. biofuel sector.” Many of the letter co-signers are supporters of the Defend the Blend Act, introduced in the Senate by Grassley and Klobuchar. The legislation would prohibit the EPA from retroactively reducing RVO levels once the annual rule is finalized, also supported by biofuels groups, including Growth Energy. *********************************************************************************** Despite Limits, Mexico Remains Significant Supplier of U.S. Sugar Mexico remains the most significant sugar exporter to the United States, despite trade limits, according to USDA’s Economic Research Service. Before 2008, Mexico provided a negligible share of U.S. sugar imports but has since become the largest supplier. Mexico’s increasing contribution to the U.S. sugar supply comes despite a limit imposed on the country’s exports to the United States under the terms of suspension agreements negotiated with the U.S. Department of Commerce in 2014. In 1994, the North American Free Trade Agreement was implemented, and sugar duties were phased out during a 15-year period. In July 2006, the United States and Mexico negotiated additional import quotas, and in 2008, sugar trade between the two countries became duty and quota-free, an arrangement that remains in place with the U.S.-Mexico-Canada Agreement. From 2008 to 2013, with no duties or quotas, Mexico’s share of total U.S. imports grew sharply and peaked at 64 percent in 2013. Mexico currently supplies the U.S. roughly 30 percent of its total sugar imports. *********************************************************************************** USDA Introduces First Market News Mobile App The Department of Agriculture this week announced a new USDA Market News Mobile Application. The app provides producers and everyone else in the supply chain with instant access to current and historical market information. The initial version of the free app includes nearly 800 livestock, poultry, and grain market reports, with additional commodities added throughout the coming year. Producers and other users can search for markets based on their location, by state, or by commodity. They also can add market reports to their favorites for easier access, share reports via text or email, subscribe to reports, and receive real-time notifications when a new report is published. There are both iOS and Android versions available to download through the Apple and Google Play stores. The iOS version is available now, and the Android version will be available later this week. Search for "USDA Market News Mobile Application" to download the app to your phone. *********************************************************************************** Americans Projected to Eat 1.42 Billion Chicken Wings for Super Bowl LVI Americans are anticipated to consume 1.42 billion wings while watching the Cincinnati Bengals and Los Angeles Rams battle for the Lombardi Trophy, according to the National Chicken Council’s 2022 Wing Report. NCC spokesperson Tom Super says, “Like almost anything else you buy right now, wings might be a little more expensive, but they’ll be stocked.” Bengals and Rams fans have not only rallied around their teams, but they’ve also rallied around the chicken wing. Wing sales in Cincinnati have seen a 27.6 percent growth during the NFL playoffs and Los Angeles a 37.3 percent increase compared to the same period last year. Retail wing prices are up about $0.30 per pound on average from the same time last year. Many costs, like the price of chicken wings, have increased because of unusually high demand, record input costs, labor shortages that have reduced the supply of many goods, and government spending programs that have flooded the economy.
| Rural Advocate News | Thursday February 3, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST, along with weekly jobless claims, a report on fourth-quarter productivity and an update of the U.S. Drought Monitor. U.S. factory orders for December are at 9 a.m., followed by the U.S. Energy Department's weekly report on natural gas storage at 9:30 a.m. Traders remain glued to the latest weather forecasts and any change in Ukraine's situation. Weather A major winter precipitation event continues on Thursday. Widespread moderate to heavy mixed precipitation has been falling from the Central and Southern Plains into the Midwest since late Tuesday along a stalled arctic cold front. The precipitation continues on Thursday but we will see it ending in the Plains and more wintry precipitation moving into the Northeast as the cold front slowly sags south and east. Moderate to heavy rainfall south of the front will cause some flood risks in the Tennessee Valley as well. Arctic cold temperatures continue to fill in behind the front across the rest of the country, with some of the coldest air of the season working down into the Southern Plains.
| Rural Advocate News | Wednesday February 2, 2022 |
Ag Economy Barometer Declines Farmer sentiment weakened in January as the Purdue University CME Group Ag Economy Barometer declined six points to 119, it's second-lowest reading since July 2020. The Current Conditions Index fell 13 points to 133, while the Future Expectations Index changed little in January, down two points at 112. Rising farm input costs and ongoing supply chain disruptions appear to be contributing to producers' weaker perception of current conditions and expectations of their farm's financial performance in 2022 when compared to last year. More producers expect the size of their operating loan to increase this year than last year or two years ago with the rise in farm input costs. Farmers in January also expressed less confidence that farmland values will continue to rise as farmland value indices fell about ten percent from their respective fall 2021 peak levels. The barometer is calculated each month from 400 U.S. agricultural producers' responses to a telephone survey. *********************************************************************************** Uncertainty Remains in Global Pork Market Outlook Rabobank says the main challenges for the pork industry in 2022 remain as COVID-19 and African swine fever. COVID-19 will continue to challenge pork supply chains and consumers in various ways, affecting both production and demand. The slowing global economy will have more visible consequences in 2022, and price inflation of consumer goods will put extra pressure on consumers. However, pork prices increased marginally in the late part of 2021 but remain below 2021 peak levels. Diseases, particularly African swine fever, are another major uncertainty for pork production, with the impact varying by region. In Europe, ASF has spread to new countries in recent months, challenging 2022 European production. In Asia, ASF continues to spread in China, but the impact is much lower than in 2020. Input costs continue to rise and will stay inflated in 2022, specifically feed and transportation costs. Global pork imports and exports will likely decline from 2021 levels, mainly driven by reductions in China's import demand as local production recovers. *********************************************************************************** Texas A&M Cattle Price Discovery and Transparency Act Analysis Released A new report claims negotiated trade mandates don't provide price discovery and market transparency as part of an analysis of the Cattle Price Discovery and Transparency Act of 2021. Republicans on the Senate Agriculture Committee requested the analysis from the Texas A&M Agriculture and Food Policy Center. The report says mandated negotiated trade levels are expected to negatively affect cattle and calf prices. The researchers say the mandate will result in lower short-term fed cattle prices due to the increase in the costs of the feeder-packer cattle sale transaction. The report concludes that, while more price discovery and market transparency can be achieved, forcing the movement away from alternative marketing arrangements via regional mandatory minimums for negotiated purchases will result in lower cattle prices and higher wholesale and retail beef prices. The report comes as the National Cattlemen's Beef Association hosts its annual convention this week, focusing on what policy position the organization will take on the issue. *********************************************************************************** Bill Allows Farmers to Repair Own Equipment Legislation introduced Tuesday seeks to guarantee farmers the right to repair their own equipment and end current restrictions on the repair market. The Agriculture Right to Repair Act, authored by Montana Democrat Jon Tester, is part of his effort to break up consolidation in the agriculture industry. Tester says farmers “need to be able to repair their own equipment, and this legislation will secure them that right.” The legislation would require manufacturers to make available any documentation, part, software, or tool required to diagnose, maintain, or repair their equipment. The bill would also provide means to disable and re-enable electronic security locks for diagnostic and repair, allow for use of third-party software, and ensure parts are replaceable using commonly available tools without causing damage to the equipment. The bill also seeks to return data ownership to farmers, as Tester claims manufacturers currently collect and sell all the data generated by farmers. *********************************************************************************** USDA Announces Federal Advisory Committee on Urban Agriculture Agriculture Secretary Tom Vilsack Tuesday announced 12 members to serve on the inaugural Secretary’s Advisory Committee for Urban Agriculture. The Department of Agriculture committee will provide input on policy development and help identify barriers to urban agriculture. The new committee is part of USDA’s efforts to support urban agriculture, creating a network for feedback. Urban agriculture plays an important role in producing fresh, healthy food in areas where grocery stores are scarce, and provides jobs and beautifies neighborhoods, according to USDA. Vilsack says, “I look forward to learning how we can better serve urban agricultural producers.” The committee includes agricultural producers and representatives from higher education or extension programs, non-profits, business and economic development, supply chains and financing. USDA and the Office of Urban Agriculture and Innovative Production peer-reviewed more than 300 nominees, and Vilsack made the final selections. Find more information about the committee and its members at farmers.gov/urban. *********************************************************************************** How Winter Storms Get Their Name A winter storm crossing the central and Midwest states has forecasts for anywhere from a dusting to more than a foot of snow. Much of the lower Corn Belt is under a winter storm warning as the storm rolls through, with the possibility of blizzard warnings. Forecasting snowfall totals can be puzzling, but perhaps more puzzling is that this storm system has a name: Winter Storm Landon. However, the National Oceanic and Atmospheric Administration reserves naming storms for hurricanes only. Names for winter storms actually come from The Weather Channel, which drafts names for winter storm systems that meet specific criteria. For a name, at least one of the following must be met: National Weather Service winter storm, blizzard, or ice storm warnings covering at least a population of two million, or covering at least an area of 400,000 square kilometers. The Weather Channel names storms alphabetically, meaning this is the 12th named storm this winter.
| Rural Advocate News | Wednesday February 2, 2022 |
Wednesday Watch List Markets The private firm, ADP, reports on private sector job growth in January at 7:15 a.m. CST Wednesday, a possible tip as to how Friday's employment statistics will look. The U.S. Energy Department's weekly inventory report is due out at 9:30 a.m., including ethanol production. Traders continue to watch the latest weather forecasts and for any news about an export sale or events pertaining to Ukraine. Weather A stalled boundary from the Southern Plains through the eastern Midwest is the focus for a large-scale winter storm event that continues on Wednesday. Moderate to heavy snow, sleet, and freezing rain are all found north of the front which will inch southward of the course of the day. While one pulse of energy currently along the front pushes northeast through the day, another will build across the Southern Plains later Wednesday and Wednesday night. Arctic cold air continues to build behind the front with wind chill advisories across a vast area of the Plains and Upper Midwest.
| Rural Advocate News | Tuesday February 1, 2022 |
USDA Announces Partnership to Ease Port Congestion Agriculture Secretary Tom Vilsack Monday announced plans to increase capacity at California’s Port of Oakland and improve service for shippers of U.S. grown agricultural commodities. The Department of Agriculture is partnering with the Port of Oakland to set up a new 25-acre “pop-up” site to make it easier for agricultural companies to fill empty shipping containers with commodities. Fewer containers are available for U.S. agricultural commodities, as ocean carriers have circumvented traditional marketing channels and rushed containers back, exported empty. USDA is taking action to reduce the shipping disruptions preventing U.S. agricultural products from reaching their markets. Vilsack says, “This partnership with the Port of Oakland builds on our aggressive approach to addressing challenges within the supply chain.” The site will provide space to prepare empty containers beginning in early March. U.S. Meat Export Federation President and CEO Dam Halstrom welcomed the announcement in a statement, saying, “improving access to containers is certainly a step in the right direction.” *********************************************************************************** Coalition Seeks Senate Action on Shipping Reforms A coalition of agriculture groups seeks Senate consideration of shipping reforms. Specifically, the group hopes the Senate will consider the House-passed Ocean Shipping Reform Act of 2021, or similar legislation. Senators Amy Klobuchar, a Minnesota Democrat, and John Thune, a South Dakota Republican, are drafting a bill to address unreasonable ocean carrier practices. In a letter to lawmakers last week, the Agriculture Transportation Coalition said, “The transportation crisis for U.S. agriculture products has become increasingly dire, adding, “it is essential the Senate also pass legislation to allow US agriculture to remain viable in global markets.” A survey recently conducted by the coalition found that, on average, 22 percent of U.S. agriculture foreign sales could not be completed due to ocean carrier practices, including exorbitant freight rates, declined booking requests, unreasonable freight and detention charges, and failure to communicate schedules in a timely manner. The coalition letter adds, "we are losing customers in foreign markets." *********************************************************************************** U.S. Cattle Inventory Down 2% The Department of Agriculture reports cattle numbers declined two percent in the latest inventory count. There were 91.9 million head of cattle and calves on U.S. farms as of January 1, 2022, according to USDA’s National Agricultural Statistics Service Cattle report. Of the 91.9 million head inventory, all cows and heifers that have calved totaled 39.5 million. There are 30.1 million beef cows in the United States as of January 1, 2022, down two percent from last year. The number of milk cows in the United States decreased to 9.38 million. U.S. calf crop was estimated at 35.1 million head, down 1% from 2020. All cattle on feed were at 14.7 million head, up slightly from 2021. USDA NASS surveyed approximately 34,800 operators across the nation during the first half of January. Surveyed producers were asked to report their cattle inventories as of January 1, 2022, and calf crop for the entire year of 2021 by internet, mail, or telephone. *********************************************************************************** Milk Consumption Declined During the 2010s U.S. per capita consumption of fluid cow’s milk has been trending downward since about the mid-1940s, and it fell at a faster rate during the 2010s than in each of the previous six decades. Using dietary intake surveys collected between 2003 and 2018, USDA’s Economic Research Service examined recent trends in milk consumption by looking at how individuals consumed the milk and consumers' ages. Results confirmed that drinking milk as a beverage is the primary way individuals of all ages consume fluid cow's milk. These beverages include plain and flavored fluid milk and other milk-based beverages. On a given day in 2003–04, U.S. consumers drank about 0.57 cup-equivalents of fluid cow's milk on average. Consumption declined over the 2010s, falling to 0.33 cup-equivalents in 2017–18. Over the study period, U.S. per person consumption of milk with cereal also fell by 0.06 cup-equivalents, with the steepest drop in consumption occurring among children. *********************************************************************************** USDA ERS Examines Food Inflation Retail food prices increased by 3.5 percent in 2021, equal to the rate in 2020 and greater than the historical annual average of two percent from 2000 to 2019. However, USDA's Economic Research Service expects less inflation this year. USDA projects that prices for food-at-home, purchased typically from grocery stores, will increase between 1.5 and 2.5 percent in 2022, lower than the 3.5-percent increase in both 2020 and 2021. Dairy products and fresh vegetables had significantly slower price increases in 2021 than 2020 and their historical averages. Dairy product prices increased 1.4 percent in 2021 versus 4.4 percent in 2020, and fresh vegetable prices increased by 1.1 percent compared to 2.6 percent in 2020. Conversely, prices in six food categories increased in 2021 at a faster rate than in 2020 as well as in years prior. Meat prices, which rose the most of any included product groups, were driven up by strong domestic and international demand, high feed costs, and supply chain disruptions. *********************************************************************************** Betsy Huber of the National Grange Joins Alliance Board of Directors National Grange President Betsy Huber recently joined the Alliance for Aviation Across America board of directors. Announced Monday, Huber will serve on the board, connecting agriculture and general aviation. Huber says, “General aviation is critical for agriculture, access to services like medical care and disaster relief, our nation’s food supply, and the economy as a whole.” Huber has been President of the National Grange since 2015. Previously she was on the National Grange’s executive committee from 2007-14. Huber also serves on the board of the Department of Agriculture’s program Safety in Agriculture for Youth and as Executive Secretary of the Pennsylvania Young Farmers Association. In 2017, she was appointed to the Federal Communications Commission’s Broadband Deployment Advisory Committee. Many agricultural operators use general aviation to transport goods, personnel, and oversee and treat crops and land. Recently, the Alliance for Aviation Across America, the Grange, and others partnered to launch futureofaviation.org. The website highlights the importance of general aviation, sustainable fuel and potential new technologies.
| Rural Advocate News | Tuesday February 1, 2022 |
Tuesday Watch List Markets A report on U.S. construction spending in December and the Institute of Supply Management's index of U.S. manufacturing in January are due out at 9 a.m. CST and complete Tuesday's list of reports. Traders will keep watching the latest weather forecasts and for any news regarding Ukraine. The cattle market will respond to Monday's January 1 inventory numbers from USDA. Weather A strong cold front is starting to settle in the Southern Plains but will still work through the Midwest Tuesday before settling over eastern areas tonight. Heavy precipitation will start to develop along this front around the Missouri area this afternoon and spread both southwest and northeast overnight. What may start out as rain will become mixed as colder air gets reinforced across the area and undercuts the rain, leading to a band of freezing rain, sleet, and snow north of the front.
| Rural Advocate News | Monday January 31, 2022 |
EPA Finalizes Extension of Refinery Compliance Deadlines The Environmental Protection Agency is working on finalizing proposed rolling compliance deadlines for 2020, 2021, and 2022. Ethanol groups like Growth Energy weren’t pleased with the announcement. Growth Energy CEO Emily Skor says delaying the compliance deadlines is completely contradictory to efforts to lower rising gas prices and increase the use of cleaner, low-carbon fuels. “By continuing to delay compliance deadlines, the EPA is creating uncertainty in the marketplace and stunting the blending of the biofuel needed to decarbonize transportation as the Renewable Fuel Standard intended,” Skor says. She also says it’s vital that the EPA moves forward on getting the RFS back on track. “EPA can start by swiftly finalizing the proposed volumes for 2022,” she adds. “Administrator Regan has emphasized time and again the need for transparency and certainty regarding the RFS. We need him to follow through on his promises to the industry and provide that certainty for biofuel producers.” *********************************************************************************** U.S. Ethanol Stocks Rising as Demand Sags At one time, the ethanol industry appeared to have put the COVID-19 lull in the rearview mirror. Sky-high output and profit margins matched up. However, Reuters says demand is dropping while oil prices rise, which is leading to a record level of ethanol stocks. America’s ethanol stocks reached the lowest point in five years in December. However, stocks jumped more than 18 percent in the last four weeks, the biggest jump in records going back to 2010. The U.S. Energy Information Administration’s data says stocks hit 24.48 million barrels last week. The only time stocks were higher occurred between February and May of 2020. Output levels have been relatively normal since November after almost reaching all-time highs in October. But profit margins have been slashed dramatically in the last two months. Corn processing margins hit $1.80 per gallon in November, the strongest level since 2014. But last week, the margins were a few cents above zero. *********************************************************************************** Senators Write Letter to EPA on Refinery Exemption Denials Senator Shelly Capito (Cah-PEE-toe) of West Virginia and several colleagues wrote a letter to EPA Administrator Michael Regan regarding the agency’s recent denial of refinery exemption petitions. The letter asks the Environmental Protection Agency to reconsider its proposed blanket denials of small refinery exemptions under the Renewable Fuel Standard. The senators say it runs counter to the clear congressional intent under the Clean Air Act. “We are puzzled by the action EPA took in these proposals, including the unprecedented and drastic step to propose a blanket denial of all 65 outstanding small refinery hardship petitions,” the letter says, “especially at a time of increasing gas prices and several small refinery closures.” They also say the current proposal not only neglects the economic impacts but nullifies Congressional intent by deliberately amending the Clean Air Act which allows for small refinery exemptions for those that face disproportionate economic hardship due to RFS compliance. *********************************************************************************** Report Looks at “Repurposing Farm Subsidies” A new report from the World Bank and the International Food Policy Research Institute looked into farm subsidies and overall farm policies. The report says that repurposing current agricultural public policies “could deliver multiple benefits for people, the planet, and the economy.” Investing in climate-smart innovations that both increase agricultural productivity and reduce greenhouse gas emissions would have many benefits. The recommended innovations could reduce overall emissions from agriculture by more than 40 percent, restore 105 million hectares of agricultural land to natural habitats, and reduce the cost of healthy foods, which would also contribute to better nutritional outcomes.” Under a ”business as usual” scenario, the report estimates that greenhouse gas emissions from agricultural production will double by 2040, with 56 million hectares of new land being used for agriculture between 2020 and 2040. It also says that just eliminating support would lower farm output and increase poverty while generating only modest climate gains. *********************************************************************************** Cattle Industry Convention Features High-Profile Speakers The 2022 Cattle Industry Convention and NCBA Trade Show is this week in Houston. The speaker lineup includes people ranging from sports heroes to global leaders. Ag Secretary Tom Vilsack will appear virtually. Robert Bonnie, the Undersecretary for Farm Production and Conservation, will appear live, and so will Dame Karen Pierce, the British Ambassador to the United States. This high-profile session takes place on Thursday and will provide updates on the business climate of the cattle and beef industry, conservation, and trade. “We’re thrilled to have Secretary Vilsack and Undersecretary Bonnie joining us at the convention,” says NCBA Vice President of Government Affairs Ethan Lane. “We take pride in our working relationship with the USDA.” Lane says they’re also pleased that Pierce will be joining the group because increased access to global markets is a key tool for increasing profitability and opportunity for cattle producers across the country.” *********************************************************************************** U.S. Customs Seizes Prohibited Meat at the Mexican Border Officials with U.S. Customs and Border Protection announced that their agriculture specialists seized prohibited meat products at the U.S.-Mexico border. Customs agents seized 243 pounds of prohibited pork bologna in two separate and unrelated incidents. “Pork products have the potential to introduce foreign animal diseases that can have devastating effects on the U.S. economy and agricultural industry,” says Director of Field Operations Hector Mancha. Officials seized 55 pounds of pork products on January 13 and another 188 pounds of bologna on January 21. The El-Paso Herald-Post says both the USDA and Department of Homeland Security are working to protect American agriculture against the introduction of pests and diseases at our nation’s ports of entry. Officials add that undeclared, prohibited agriculture items will get confiscated and can result in a large civil penalty for failure to declare at the border. The bologna was seized and destroyed by CBP agents per USDA regulations.
| Rural Advocate News | Monday January 31, 2022 |
Monday Watch List Markets Traders will be checking the latest weather reports from the weekend and for any news of possible change in the situation regarding Ukraine. At 10 a.m. CST, USDA will have its weekly report of grain export inspections. At 2 p.m., USDA will release its January 1 U.S. cattle inventory estimate. Weather A clipper system will move across the U.S.-Canada border Monday and Tuesday. It will bring some scattered showers and strong winds to the Northern Plains and Canadian Prairies. However, its front will be the focus for weather this week as widespread moderate to heavy mixed precipitation will develop across a large portion of the country Tuesday through Friday.
| Rural Advocate News | Friday January 28, 2022 |
CA Judges Halts Enforcement of Prop 12 on Pork A California judge ruled that enforcing Proposition 12 regulations on whole-pork sales should be halted due to the state’s lack of rules. The state’s Department of Agriculture is over two years late in finalizing regulations for pork producers, and the ruling delays enforcement until 180 days after the final rules take effect. Successful Farming says ag groups like the American Farm Bureau and National Pork Producers Council applauded the decision. “Farm Bureau is pleased that the court recognized that California rushed the implementation of Proposition 12 without clear enforcement rules,” says Farm Bureau President Zippy Duvall. Prop 12 bans the sale of pork from hogs that aren’t raised according to the state’s production standards. Any meat from hogs born of sows not housed in conformity with the state law can’t be sold in California, even if the animals got raised outside the state. The organizations say, for that reason, Prop 12 unconstitutionally restricts interstate commerce. *********************************************************************************** Iowa Trying Again for Higher Ethanol Blends Iowa Governor Kim Reynolds is taking another shot at higher ethanol blends. She wants the state to require gas stations to offer fuel with higher ethanol blends. The Des Moines Register says a more wide-reaching proposal stalled out last year after disagreements between fuel retailers, renewable fuel providers, and transportation groups. “Iowans deserve access to fuel that’s less expensive, cleaner-burning, and grown and made right here,” Reynold says. Her new legislation recently passed the House Ways and Means Committee after hearing objections from transportation groups and gas stations, as well as praise from renewable fuel producers. Despite the disagreements, key lawmakers say they’re much closer to an agreement that both sides could accept. That’s compared to the wide gap that kept the legislation from passing in 2021. Lawmakers say the work they began a year ago, spending a lot of time in meetings, and trying to build a consensus may pay off in 2022. *********************************************************************************** Farmers are the Real Key to Environmental Mitigation Work An Ohio corn farmer told officials from a federal interagency working group that the Environmental Protection Agency should look to farmers as it works to mitigate pesticide issues. “We respect the EPA’s responsibility to protect the environment, including endangered species,” said Patty Mann, a farmer from Jackson Center, Ohio. “We ask that the agency work closely with growers, the ones who often know the land the best, in developing and enacting mitigation measures.” Mann’s remarks came before the IWG, which is made up of the White House Council on Environmental Quality, the Departments of Agriculture, Commerce, and the Interior, and the EPA. Mann cautioned the officials against making a one-size-fits-all approach to the mitigation efforts. “The EPA must understand the real-world, on-farm implications of mitigation measures,” she says. “Every farm and landscape has its differences, so you must give some flexibility for the success of both farmers and the at-risk species.” *********************************************************************************** Farm Labor App Announces College Ambassadors AgButler announced it chose ten collegiate ambassadors who are committed to being advocates for the agricultural industry. The application serves in the connections business and as a solution to labor shortages in rural America. The AgButler Ambassadors are tasked with helping connect laborers and employers within the app using their own agricultural networks. “Our goal for the AgButler Ambassador program is to encourage the next generation of young people passionate about agriculture to stay invested in production agriculture and their rural communities,” says Kevin Johansen, Founder and CEO of AgButler. The 2022 ambassadors come from states like Minnesota, Missouri, Iowa, Michigan, South Dakota, Nebraska, and Colorado. “We are excited about each of the young people we selected and believe they are already top-notch advocates for the agricultural community.” Like well-known “ride-sharing” technology, farmers, ranchers, ag businesses can connect with available labor through AgButler. The labor is filtered by location, ratings, work experience, and availability. *********************************************************************************** Japanese Equipment Maker Kubota Developing Vineyard Robots Japanese farm equipment manufacturer Kubota is trying to take vineyard farming in a brand-new direction. Nikkei (Nih-KAY) says Kubota is working with Tesla co-founder Ian Wright to make farming robots controlled by artificial intelligence. The partnership is working initially on robots that will help producers grow grapes. The grape-growing machines will move through vineyards on their own, with the AI analyzing camera images to select which branches to trim and how well the grapes are growing. The company plans to have the grape robots eventually handle harvesting too. Kubota says it anticipates demand from West Coast farms in the U.S. currently using conventional equipment. The company says it’s undertaking the project because global demand for food will rise 70 percent above the 2010 level while the number of farmers is declining in the world’s industrialized nations. Kubota already sells autonomous tractors to rice growers, and those units can run by themselves under human supervision. *********************************************************************************** RMA Extends Crop Insurance Flexibilities to June Because of the ongoing impact of COVID-19, the USDA is extending program flexibilities to Approved Insurance Providers and agricultural producers until June 30 or later. These flexibilities had been scheduled to expire this month. “Our priority is to keep our producers and partners as safe as possible, while, at the same time, continuing to provide the best service we can,” says Marcia Bunger, administrator of the Risk Management Agency. “These unique times call for everyone to be as cautious and flexible as possible. Flexibilities include allowing notifications to get sent electronically, including policy-related information over the phone or by other electronic methods to select policy elections by sales closing, acreage reporting, and production reporting dates, including options, endorsements, and their forms. Producers may choose to sign forms electronically or do so within 60 days. Producers may also submit a request for a written agreement after the sales closing date.
| Rural Advocate News | Friday January 28, 2022 |
Friday Watch List Markets At 7:30 a.m. CST Friday, there are reports on December U.S. personal incomes and consumer spending and the employment cost index for the fourth quarter. At 9 a.m., the University of Michigan releases its final index of consumer sentiment for January. Traders will continue to keep an eye on the latest weather forecasts and any news regarding Ukraine. Weather A frontal boundary working through the Midwest and toward the East Coast will create a Nor'easter tonight into Saturday with heavy snow and strong winds near the coast. The rest of the country will be quiet with cold air for most places outside of the Central Plains up through the Canadian Prairies.
| Rural Advocate News | Thursday January 27, 2022 |
USDA Announces Conservation Reserve Program Signups for 2022 Agricultural producers and landowners can sign up soon for the Conservation Reserve Program. The Department of Agriculture calls CRP a key tool in the Biden-Harris Administration effort to address climate change and achieve other natural resource benefits. The General CRP signup begins January 31 and remains open through March 11, and the Grassland CRP signup runs from April 4 to May 13. Producers and landowners enrolled 4.6 million acres into CRP signups in 2021, including 2.5 million acres in the largest Grassland CRP signup in history. There are currently 22.1 million acres enrolled, and FSA aims to reach the 25.5-million-acre cap statutorily set for fiscal year 2022. General CRP helps producers and landowners establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality and enhance wildlife habitat. Farmers and landowners interested in CRP should contact their local USDA Service Center to learn more or apply for the program. *********************************************************************************** Report: Concentration Not Affecting Pork Prices A new report shows pork prices increased because of demand, higher input costs and labor shortages throughout the supply chain, not concentration in the meatpacking industry. Economists with Iowa State University, North Carolina State University and the National Pork Producers Council released the report Wednesday. The report also says pork prices in the United States are still lower than in many other countries. The pork packing industry is made up of fewer and larger plants than it was 50 years ago. Still, the industry's structure has changed little in recent decades, the report stated. Concentration levels today are about seven percent lower than they were five years ago because of new packing plants that opened from 2017 to 2020. National Pork Producers Council President Jen Sorenson adds, “This report shows the concentration level in the pork packing industry is not significantly higher than it was 15 years ago.” *********************************************************************************** USDA: COVID-19 Impact on Pork Processing Short-lived USDA’s Economic Research Service says the impact of COVID-19 on processing rates was short-lived in the largest pork-producing region. Iowa, Kansas, Missouri, and Nebraska compose the largest hog processing region in the United States, where more than 40 percent of all U.S. hogs are processed. The region is also home to more large and medium-sized processing plants than other regions. In the first three months of the COVID-19 pandemic, March-May 2020, the region experienced a 40 percent decline in hog slaughter compared with rates during the same period in 2019. Labor shortages attributed to COVID-19 infections among workers resulted in slow production and temporary shutdowns at large processing plants for about ten weeks. However, when looking at hog slaughter and reported COVID-19 cases for the entire year, slaughter increased even as cases of infection also increased. From June 2020 through the end of December 2020, weekly slaughter rates were generally on par with 2019 levels. *********************************************************************************** USDA Invests $1 Billion to Improve Community Infrastructure in Rural Towns The Department of Agriculture Wednesday announced a $1 billion investment to improve critical community facilities in 48 states, Puerto Rico and Guam. USDA says the infrastructure funding will increase access to health care, education and public safety while spurring community development and building sound infrastructure for people living in rural communities. USDA Deputy Secretary Jewel Bronaugh (Bro-NAW) says, “These loans and grants will help rural communities invest in facilities and services that are vital to all communities.” Bronaugh highlighted 731 projects that USDA is making in five programs that will fund essential community services. These programs include Community Facilities Direct Loans and Grants, Community Facilities Loan Guarantees, Community Facilities Technical Assistance Training Grants, Community Facilities Disaster Grants, and Economic Impact Initiative Grants. More than 100 types of projects are eligible for funding. Eligible applicants include municipalities, public bodies, nonprofit organizations and federally recognized Native American tribes. Projects must be in rural areas with a population of 20,000 or less. *********************************************************************************** Grazing Loss Assistance Application Deadline Nears Ranchers and livestock producers may be eligible for financial assistance through the Livestock Forage Disaster Program for 2021 grazing losses due to a qualifying drought or fire. Farm Service Agency Administrator Zach Ducheneaux (DOO-shah-no) says, “FSA is here to help offset these economic hardships and help producers rebuild with resilience.” The deadline to apply for the program is coming up on January 31, 2022. For the 2021 program year, 901 counties in 26 states and territories met drought severity levels that trigger eligibility. More than $473.1 million has been paid, to date, to livestock producers eligible for 2021 funding. For the Livestock Forage Disaster Program, qualifying drought triggers are determined using the U.S. Drought Monitor. The program provides payments to eligible livestock producers and contract growers who also produce forage crops for grazing and suffered losses due to a qualifying drought or fire during the normal grazing period for the county. Additional disaster assistance information can be found on farmers.gov. *********************************************************************************** USDA To Conduct First-Ever National Agroforestry Survey The Department of Agriculture will conduct the first-ever National Agroforestry Survey. The National Agricultural Statistics Service is mailing the survey to 11,000 farmers and ranchers next week to gather information on agroforestry practices used for climate, conservation and production. NASS Agricultural Statistics Board Chair Joe Parsons says, "The results of this survey could catalyze important change by helping policymakers and farm groups more fully understand and support this aspect of agriculture." The survey is conducted cooperatively with the USDA National Agroforestry Center, a partnership between USDA's Forest Service and Natural Resources Conservation Service. The center will release the data in studies and publications. Highlights will give an overview of how agroforestry practices are used in regions across the United States. Producers can respond to the survey securely online at agcounts.usda.gov or by mail. The survey will take no longer than 50 minutes to complete if producers have all five agroforestry practices on their operations.
| Rural Advocate News | Thursday January 27, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, along with weekly jobless claims, the first estimate for fourth quarter U.S. GDP, December durable goods orders and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage is set for 9:30 a.m. Traders will continue to keep track of the latest weather forecasts and may respond to news from AP late Wednesday that representatives from Russia, Ukraine, France and Germany expressed support for a ceasefire in eastern Ukraine and agreed to meet again in two weeks. Weather Another cold front is moving into the Upper Midwest Thursday morning and will spread south through the Midwest and Plains throughout the day. The front will produce some areas of limited snow showers but will bring in some colder air to the Midwest. The front will create a potential Nor'easter for the coastal Mid-Atlantic and Northeast on Friday.
| Rural Advocate News | Wednesday January 26, 2022 |
Groups Come Together to Work on Supply Chain Issues The International Dairy Foods Association, the Port of Los Angeles, and CMA CGM, a French shipping and logistics company, have formed the Dairy Exports Working Group. It will work to identify and address supply chain issues hampering U.S. dairy product exports. The announcement was made at the Dairy Forum, which is the annual IDFA conference. The groups will focus their efforts on West Coast ports, which is where most U.S. dairy products leave the country. The Hagstrom Report says they’ll also look at ways to streamline shipping from the nation’s midsection to the West Coast. “U.S. dairy exports reached a near-record $6.4 billion in 2020 and continued at a strong pace in 2021 because of high demand,” says Michael Dykes, IDEFA President. “That total could be much higher with more reliability and predictability in the supply chain.” The CMA CGM Group promised to offer more empty containers to U.S. exporters to help speed up shipping efforts. *********************************************************************************** Ag Groups Ready to Help with Developing New Farm Bill Officials in Washington, D.C., are gearing up to debate reauthorizing the next farm bill in 2023. One group of grower-leaders intends to be a valuable resource for both corn growers and policymakers. The Risk Management and Transportation Action Team is a group that oversees much of the National Corn Growers Association’s public policy work on transportation, the farm safety net, and federal taxes. That group intends to play an active role in preparing NCGA for the 2023 Farm Bill. “We will be spending time evaluating the current farm bill commodity and crop insurance programs, supporting strong risk-management tools, and looking for areas of improvement,” says team chair Bill Leigh. “The work to protect key tax provisions never stops in Washington.” The current estate and gift tax exemptions will automatically lower in several years unless addressed by Congress. The Action Team will continue working to protect important tax provisions while the farm bill debate takes place in Washington. *********************************************************************************** Weekly Corn and Soybean Export Inspections Drop Corn and soybean inspections for overseas delivery dropped during the week ending on January 20. Wheat assessments went in the other direction. USDA says corn inspections totaled 1.12 million metric tons, down from 1.24 a week earlier. That’s also lower than the 1.4 million assessed for delivery during the same week in 2021. Soybeans examined for export totaled 1.3 million metric tons. That’s down from 1.73 million tons inspected a week earlier and the 2.1 million tons assessed during the same week in 2021. Wheat inspections last week came in at just shy of 401,000 metric tons, up from 384,300 tons during the previous week but well below the 571,700 tons examined during the same week in 2021. Since the beginning of the marketing year in September, soybean inspections are at 34.8 million metric tons, well below the 45.6 million tons assessed during the same week in 2021. Wheat assessments since June 1 are 13.2 million metric tons. *********************************************************************************** Analyst says the U.S. Can Expect More Soybean Sales in 2022 Smaller than expected South American soybean crops likely mean more soybean export business for the U.S. in 2022. Reuters says Oil World, an oilseeds analyst, says major soybean export business will likely get pushed toward the U.S. in June and will continue from there. Oil World estimates that the combined soybean harvests in Brazil, Argentina, Paraguay, and Uruguay will fall to approximately 186.3 million tons. That total is 7.4 million tons below the prior season and the lowest numbers in four years. Uncertainty about the final crop size in South America may mean their farmers will be more hesitant to sell into the market, keeping more beans in stock as a hedge against inflation. “U.S. farmers will benefit as buyers in importing countries will likely shift their purchases to American soybeans from June or July onward,” says Oil World. “The biggest increase is likely to happen from September through December of 2022.” *********************************************************************************** Cornell, ARS Combine to Offer National Hemp Webinar Series The USDA’s Agricultural Research Service is teaming up with Cornell University to launch a webinar series on hemp research. The goal is to broaden the scope of training, education, and connectivity within the U.S. hemp community. “Hemp is rapidly becoming a critical multi-use and economically significant crop, so this hemp series is designed to provide hemp-specific education, training, and networking opportunities to historically underserved communities,” says Zach Stansell, ARS Geneticist, and acting hemp curator. “Training and educating new scientists from many different backgrounds is critical to achieving the most cutting-edge solutions to an array of issues producers face,” says Cornell Crop Specialist Daniela Vergara. “Those issues include everything from climate change to economic viability.” Research experts in academia, laboratories, production facilities, and private industry will give the online lectures. The first webinar will cover outdoor cultivation on January 26. For more information, including topics and webinar schedules, go to ars.usda.gov. *********************************************************************************** Coalition to Study Decontamination in the Event of an ASF Outbreak The Swine Health Information Center started a coalition to study ideal methods for cleaning and disinfecting feed mills following a potential African Swine Fever Outbreak. Other organizations include the Institute for Feed Education and Research, the Animal Nutrition Association of Canada, and the United Soybean Board. “SHIC continues to look into all the ways diseases can get into and spread throughout the country,” says Executive Director Paul Sundberg. “It’s not just to identify pathways but to do something about them with this kind of research.” He also says that once the ASF virus gets into a feed mill, it will stay there for a long time, meaning the work is essential to address the risk to the U.S. swineherd. The project will examine the optimal methods for disinfecting feed mills, paying close attention to feed manufacturing equipment that’s not designed for disinfection. “Again, this work is essential to protecting the swineherd,” he adds.
| Rural Advocate News | Wednesday January 26, 2022 |
Wednesday Watch List Markets Wednesday's reports start with December U.S. new home sales at 9 a.m. CST, followed by the Energy Department's weekly inventory report, including ethanol production at 9:30 a.m. Financial market watchers will tune in at 1 p.m. CST to hear the Federal Reserve's post meeting announcement. The federal funds rate will likely stay unchanged, but hints may be offered for an impending rate hike. Weather A batch of snow has moved south into the Texas and Oklahoma Panhandles Wednesday morning. The snow will weaken and eventually dissipate as it slides east later in the day. Cold air in the Midwest will push eastward throughout the day with a brief end to arctic air. But another cold front is gathering across southern Canada, ready to spread through the eastern half of the country Thursday and Friday.
| Rural Advocate News | Tuesday January 25, 2022 |
Retaliatory tariffs Reduced U.S. Ag Exports Annually by $13.2 Billion New data from USDA’s Economic Research Service shows retaliatory tariffs reduced U.S. ag exports annually by $13.2 billion. Specifically, the research points to six trading partners, Canada, China, the European Union, India, Mexico, and Turkey, that announced retaliatory tariffs affecting agriculture and food products in 2018. The retaliatory tariffs followed U.S. tariffs on steel and aluminum imports from major trading partners and on a broad range of imports from China. The agricultural products targeted for retaliation were valued at $30.4 billion in 2017, with individual product lines experiencing tariff increases ranging from two to 140 percent. USDA estimates annualized losses from mid-2018 through the end of 2019 totaled $13.2 billion across 17 commodity groups, led by soybeans, sorghum, and pork. While retaliatory tariffs affected all states, the Midwest experienced the largest losses. ERS researchers estimated Iowa lost $1.46 billion, Illinois, $1.41 billion, and Kansas, $955 million, all on an annualized basis. *********************************************************************************** Farm Futures Survey: More Soybean Acres Than Corn This Year A survey from Farm Futures shows fertilizer prices are changing planting intentions. The January 2022 Farm Futures survey found that high input costs will drive U.S. growers to plant fewer corn acres in 2022 in favor of other crops with less expensive production costs. Some 93 percent of growers expect high input costs this year to slash profits. The survey results put Farm Futures 2022 projected corn acreage at 90.4 million acres and soybean acres at 92.4 million acres. The last and only time soybean acreage surpassed corn was in 2018, when 296,000 more acres of soybeans than corn were planted. Double crop winter wheat and soybean rotations have likely already consumed many of those corn acres, according to Farm Futures, which projects winter wheat acreage at 35.2 million acres. USDA releases its first look at 2022 acreage estimates Thursday, March 31, 2022. Farm Futures will conduct another grower survey ahead of the Prospective Plantings. *********************************************************************************** AFBF: Vaccine Mandate Will Lead to More Supply Chain Troubles American Farm Bureau Federation President Zippy Duvall says a federal vaccine mandate on non-U.S. citizens traveling to the U.S. will lead to more supply chain issues. Last week, the Department of Homeland Security announced enforcement of the vaccine requirement, which includes essential workers, traveling to the United States. Duvall says Farm Bureau is concerned that the decision “will limit agriculture’s ability to grow safe and nutritious food.” Farm Bureau says DHS failed to provide proper notice of the mandate, which gives farmers, ranchers and agriculture suppliers no time to prepare. Farmworkers and truck drivers provide critical skills and have been designated as essential by the Cybersecurity and Infrastructure Security Agency. Duvall adds that further limiting the available workforce will exacerbate existing supply chain issues as families face rising prices and fewer options at the grocery store. The Homeland Security Department says the travel restriction will remain in place until April 21, 2022. *********************************************************************************** Army Corps Receiving Funding for Missouri River Infrastructure Projects The U.S. Army Corps of Engineers Kansas City District will receive approximately $278 million under the Infrastructure and Investment Jobs Act. Almost $249 million of that is to repair damages caused by the 2019 flood to the Bank Stabilization and Navigation Project along the Missouri River from Rulo, Nebraska. to St. Louis, Missouri. In addition to Missouri River repairs, several lakes in the area will benefit from the funding. Tuttle Creek Lake in Manhattan, Kansas, will receive $15 million to repair rock embankments on the dam and perform other dam maintenance and infrastructure repairs. Overall, the U.S. Army Corps of Engineers received $17.1 billion in infrastructure funds across the nation for its Civil Works programs, projects and activities that will help the nation address current and future water resources infrastructure needs. The act’s appropriations also enable the Corps of Engineers to regulate development in waters of the United States. *********************************************************************************** Fuel Prices Increase Again Last Week The nation's average gas price increased for the fourth straight week, climbing 1.8 cents from a week ago to $3.32 per gallon. The national average is up 3.3 cents from a month ago and 92.0 cents per gallon higher than a year ago. The national average price of diesel increased 5.4 cents in the last week and stands at $3.66 per gallon, the highest level since October 2014. Gas Buddy’s Patrick De Haan says, “With all eyes on the Russia/Ukraine situation, oil will likely remain north of $80 per barrel, with additional volatility.” De Haan says rising gas prices will likely persist as worries continue to overpower weak global consumption. Continued attention is focusing on Russia and the possibility of the world's second-largest oil producer making a move into Ukraine. U.S. retail gasoline demand fell last week as weather, rising unemployment figures and omicron may have all played some role in a big drop in gasoline demand. *********************************************************************************** Taco Bell Unveils 3rd Dairy-Based Beverage with Checkoff Support Taco Bell is continuing its run of dairy-based beverages thanks to dairy checkoff support. Dairy Management Incorporated Monday announced the chain released the Island Berry Freeze that uses a shelf-stable creamer created by dairy checkoff scientists. It is Taco Bell’s third beverage launch featuring the dairy creamer, beginning with the Pineapple Whip Freeze in May of 2020 and the Mountain Dew Baja Blast Colada Freeze last May. Another popular Taco Bell item, the Grilled Cheese Burrito, is back on the menu. The burrito launched in the summer of 2020 and re-entered Taco Bell’s menu last fall with a double steak option. Taco Bell’s Heather Mottershaw says, “We’re grateful to have checkoff scientists working side-by-side with our team to continue pushing the envelope with items featuring dairy.” DMI’s Emily Bourdet adds, “our on-site scientists at Taco Bell have changed the game for how to incorporate dairy and creating excitement for Taco Bell fans.”
| Rural Advocate News | Tuesday January 25, 2022 |
Tuesday Watch List Markets A report of U.S. consumer confidence in January at 9 a.m. CST is the lone entry on Tuesday's docket. Traders will check the latest weather forecasts, pause at 8 a.m. for a possible export sale announcement and watch for any indication of Russia's next move. Outside markets are anticipating Wednesday's announcement from the Federal Reserve. Weather A cold front that has sagged south through the Plains will have some light precipitation moving through western areas on Tuesday in the form of snow. While some moderate snowfall amounts up to about six inches are possible, liquid equivalents of 0.50 inches or less are not going to be enough to have an impact on the ongoing drought. Arctic cold temperatures for portions of the eastern Canadian Prairies into the Upper Midwest will make for some dangerously cold windchills for both humans and livestock.
| Rural Advocate News | Monday January 24, 2022 |
Vilsack Already Thinking About Next Farm Bill Ag Secretary Tom Vilsack spoke before the House Agriculture Committee last week and brought up the next farm bill. The Hagstrom Report says he wants the committee to use the next bill to help him move rural America from an “extractive economy” to a “circular economy.” He says a circular economy is one where the wealth stays as the opportunity and jobs are all created in rural areas. Some of the many ways to move rural communities into a circular economy include increasing processing capacity in rural America, encouraging biobased manufacturing, and finding ways to convert agricultural waste into renewable energy and fuel. “Lagoons of animal waste will become a thing of the past when that waste gets converted to energy,” he says. House Ag Chair David Scott of Georgia said during the hearing that after the next congressional break, the committee will then begin working on the 2023 Farm Bill. *********************************************************************************** China Didn’t Meet Phase One Commitment China wound up $16 billion short of achieving its obligations under the Phase One Trade Deal with the U.S. A DTN report says the Biden administration is looking for ways to keep China buying agricultural products. Ag Secretary Tom Vilsack told the House Ag Committee that the administration is “putting them on notice that we want them to live up to the agreement.” The secretary told committee members that the U.S. has unfinished business when talking about the two-year trade deal which ended on January 1. Vilsack says China committed to buying $40 billion a year in ag products in 2020 and 2021. The Asian nation missed the goal by $13 billion in 2020 ($27 billion) and missed the goal by $3 billion ($37 billion) in 2021. Vilsack also says China didn’t yet revise its import rules for crop biotechnology approvals, dried distillers’ grains, ethanol purchases, and many other already agreed-on obligations. *********************************************************************************** Senators Talk Pesticide Registration Struggles with Regan Four senators from farm country talked with Environmental Protection Agency Administrator Michael Regan about recent agency decisions that will restrict farmer access to crop protection products. The EPA has issued several decisions that will hinder farmers’ ability to control weeds and pests, which can cripple plants and severely undermine crop yields. The senators pointed out that will adversely impact farmers’ ability to efficiently and effectively produce the commodities that feed the world. The senators were Chuck Grassley and Joni Ernst of Iowa, Mike Braun of Indiana, and Dr. Roger Marshall of Kansas. “Crop protection products play a crucial role in food production, yet they’re a common target of the Biden administration,” they said in a joint statement after the meeting. The four say that EPA isn’t sufficiently engaged with USDA, the product registrants, and growers to fully understand what the implications of their decisions can be. They include decisions on biological evaluations, Dicamba, and Chlorpyrifos. *********************************************************************************** South Korea Lifts Temporary Ban on Canadian Beef South Korea is lifting its temporary suspension of Canadian beef imports. Reuters says the ban began after Canada detected a case of BSE, or “Mad Cow Disease,” in December. Canada’s Agriculture Minister Marie Claude-Bibeau (BEE-boh) says South Korea halted the shipments after Canada last month reported its first BSE case in six years. China and the Philippines issued their own suspensions soon after that. On social media, Canada’s agriculture department says it’s “great news for our cattle sector.” Bovine Spongiform Encephalopathy is a fatal disease of the nervous system in cattle. Canada is the eighth-largest beef and veal exporter. December’s BSE case took place in an eight-year-old beef cow in Alberta. Canada’s newest BSE case is atypical, meaning it’s a form of disease that can occur naturally in older cattle. That’s opposed to classical BSE, which can be caused by an animal that unsuspectingly eats contaminated feed. *********************************************************************************** NCGA Director Named to Board of America’s Watershed Initiative The America’s Watershed Initiative recently named its 2022 Board of Directors Executive Team. Rachel Orf, the National Corn Growers Association Director of Stewardship and Sustainability was elected as the board’s Secretary. “It’s an honor to serve on the board and be a part of an organization that works across so many sectors and states,” says Orf. “The health of the Mississippi River Watershed is critical to ensuring the river remains productive and healthy for future generations.” In announcing the new board, America’s Watershed Initiative says, “We are made up of public, private, and nonprofit leaders working together voluntarily to improve the health of the Mississippi River Watershed by informing, advocating, and leveraging improved decision-making about the watershed’s natural resources.” AWI is built on support and guidance from industry and commerce, conservation, local communities, government, and academia. Interested people can learn more about AWI and NCGA’s involvement at AmericasWatershed.org. *********************************************************************************** Iowa Plant Converting Corn Stover to Natural Gas One of Iowa’s most plentiful resources is corn stover. The Iowa State Extension website says that stover is now being used to create renewable natural gas that heats Iowa homes and businesses. The Verbio North America Plant in Nevada, Iowa, has been converting chopped corn stalks into natural gas since December 7. Once converted, the natural gas enters an Alliant Energy pipeline that traverses central Iowa. Using anaerobic digestion, eight large digesters combine the corn stover with the bacteria of livestock manure, which results in the conversion of corn residue into biomethane gas that’s equivalent to the natural gas found in fossil fuels. The plant is in its early stages and plans to expand in the next several months, and the goal of the expansion is to provide enough renewable gas to heat up to 5,000 homes. Iowa produces the most corn in the United States, and the stover is what’s left behind on the ground after harvest.
| Rural Advocate News | Monday January 24, 2022 |
Monday Watch List Markets Traders will likely be keeping a close watch on the latest weather forecasts and any news pertaining to Ukraine over the weekend. USDA's weekly report of grain inspections is due out at 10 a.m. CST, followed by USDA's monthly cold storage report at 2 p.m. Weather The last in a series of a clippers is moving through the country over the next couple of days, bringing another shot of cold, arctic air for a good portion of the country, along with some light snows to the Midwest. The front will sag through the Plains with some light snow as well but will not impact the drought throughout the region.
| Rural Advocate News | Friday January 21, 2022 |
Input Prices Greatest Threat for 2022 The Latest Rural Mainstreet Index shows rising input prices as the top threat in 2022 for farmers. Released Thursday, the index declined in January, though it remained above growth neutral for the 14th straight month. Overall, the region's reading for January fell to 61.1 from December's 66.7. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. The region’s farmland price index decreased to a very strong 88.5 from December’s record high of 90.0. This month, bankers were asked to identify the greatest 2022 risk for farmers in their area. Bankers overwhelmingly named rising farm input prices, such as fertilizer, as the top farm threat. Bankers ranked disruptions of the delivery of farm inputs and rising interest rates as the second and third greatest 2022 threats to farm operations. However, one Iowa banker says, “Increased input costs have raised our average farmer break even points, but current commodity prices still produce moderate gains in all areas of financial statements.” *********************************************************************************** Grassley, Colleagues Urge Infrastructure funds for Missouri River Flood Control Midwest lawmakers urge the federal government to prioritize funding for flood mitigation and prevention projects along the lower Missouri River. Iowa Republican Senator Chuck Grassley and Missouri Republican Representative Sam Graves led nearly a dozen colleagues in a letter to Michael Connor, Assistant Secretary for Civil Works, on the issue. Specifically, the lawmakers are pushing Connor to utilize funding from the Infrastructure Investment and Jobs Act to invest in flood-related projects for the Lower Missouri River Basin, including the Navigation and Flood Control Studies and the Bank Stabilization and Navigation Project. As the letter states, the legislation also provides funding to complete site-specific studies to address immediate needs along the river. Grassley says, “When I voted for the bipartisan infrastructure bill, I was voting for exactly this type of federal support for critical infrastructure.” The letter comes as the Department of the Army begins to allocate funding from the infrastructure package for the Army Civil Works Program in Fiscal Year 2022. *********************************************************************************** USDA Releases 2020 Pesticide Data Program Annual Summary The Department of Agriculture this week published the 2020 Pesticide Data Program Annual Summary. The summary shows that more than 99 percent of the samples tested had pesticide residues below benchmark levels established by the Environmental Protection Agency. The report for 2020, issued by USDA’s Agricultural Marketing Service, marks the 30th year of survey results. Over the 30 years, USDA has tested 126 commodities, including fresh and processed fruits and vegetables, dairy, meat, poultry, grains, fish, rice, specialty products and water. Monitoring results for more than 310,000 samples through the years are available on the Pesticide Data Program website. Each year, USDA and EPA work together to identify foods to be tested by the program on a rotating basis. In 2020, tests were conducted on 9,600 samples from 18 commodities of fresh and processed fruits and vegetables. AMS partners with cooperating state agencies to collect and analyze pesticide residue levels on the selected food commodities. *********************************************************************************** Per Acre Water Use in Irrigated Farmland Declining Information updated this week from USDA’s Economic Research Service shows per-acre water usage is declining on irrigated farmland. Since 1969, the amount of water used per acre irrigated has decreased substantially. The average water use per irrigated acre was more than two acre-feet in 1969, declining to nearly 1.5 acre-feet by 2018. One acre-foot equals roughly 325,000 gallons. USDA says efficient water application technologies, such as the transition from gravity-based to pressurized irrigation systems, have driven the reduction in water use per acre of irrigated land. However, irrigated acreage in the U.S. grew from less than three million acres in 1980 to more than 58 million in 2017. The expansion of irrigated acreage reflects Federal, State, and local investment in irrigation infrastructure to deliver surface water to farms and ranches. Additionally, the expansion is partly due to advancements in well drilling and pumping technologies, facilitating growth in groundwater-based irrigated agriculture. *********************************************************************************** Operation Lifesaver Releases New Rail Safety Resources Operation Lifesaver, Inc., the national non-profit rail safety education organization celebrating its 50th Anniversary in 2022, is releasing new rail safety resources to help farmers and farm machine operators stay safe and avoid incidents around railroad tracks and trains. Across the U.S., farm vehicles often cross railroad tracks on private roads in agricultural areas. According to preliminary 2020 Federal Railroad Administration statistics, 325 crossing collisions comprising 17 percent of total incidents occurred at private railroad crossings, resulting in 22 fatalities and 111 injuries. The new OLI materials are available in English and Spanish and include rail safety education presentations, lesson plans and handout materials for students. OLI Executive Director Rachel Maleh says the materials “provide actionable advice to farm communities on how to work safely near railroad tracks and trains.” The rail safety education materials for youth were developed with input from members of national youth development programs 4 H and the National FFA Organization. The new materials are available at oli.org. *********************************************************************************** Cover Crops: Beyond the Field and in the Garden Cover crops aren’t just for your fields anymore, they are beneficial to your garden, too. The University of Illinois Extension says using cover crops in the home garden has many benefits, including soil structure, drawing nutrients up from deep in the soil, and increasing soil fertility. Cover crops are planted before a garden is planted or after harvest and can also be planted in areas that are unused for the season. There are two types of cover crops to consider, warm-season and cool-season. Warm-season cover crops are planted in spring or summer before the garden is planted or in a fallow area. Buckwheat, cowpeas, and crimson clover are warm-season are common cover crops used in the home garden. Cool-season cover crops are planted in late summer or early fall after the vegetables are harvested. Oats, winter wheat, winter rye, and crimson clover can be used as cool-season cover crops. After cutting down the cover crop, leave the cut portion as a mulch on top of the soil or till it into the ground.
| Rural Advocate News | Friday January 21, 2022 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST, followed by the Conference Board's U.S. index of leading indicators at 9 a.m. Traders will keep a close watch on the latest weather forecasts and any news concerning Russia and Ukraine. USDA's cattle on-feed report for January 1 is set for release at 2 p.m. CST. Weather An arctic cold front has been slowly sliding through the Southeast and precipitation along the front will fall into the cold-air side of the front Friday with a mix of freezing rain and snow, mostly for the Carolinas and especially tonight. Another front is moving through the Canadian Prairies and Northern Plains with a mix of showers as warmer air pushes the arctic air eastward. Winds are also fairly strong across the region both ahead and behind the front which could cause visibility issues with blowing snow.
| Rural Advocate News | Thursday January 20, 2022 |
Trade War Retaliation Cost Agriculture $27 Billion in Exports Tariffs imposed on American agricultural exports in retaliation for Section 232 tariffs on steel and aluminum imports from key trading partners cost agriculture a lot of export sales. Combine that with the Section 301 tariffs on Chinese imports and China’s retaliatory actions, and it led to an overall $27 billion reduction in U.S. ag exports from mid-2018 to the end of 2019. Six trading partners, including Canada, China, the European Union, India, Mexico, and Turkey all responded to the U.S. tariffs by implementing retaliatory duties on America’s agricultural and food exports. A summary of a report from the Economic Research Service says state-level losses were largely focused in the Midwest, with Iowa, Illinois, and Kansas accounting for roughly 11 percent, 11 percent, and seven percent, respectively, of all losses. Soybeans accounted for the largest share of the total losses at 71 percent, followed by sorghum and pork. Brazil gained most of the lost U.S. soybean trade. *********************************************************************************** Mississippi River Locks/Dams Get $829 Million for Improvements The U.S. Army Corps of Engineers is investing $829.1 million in investments for modernizing locks and dams along the Mississippi River. The funding was made available through the bipartisan Infrastructure Investment and Jobs act. “Our agriculture, manufacturing, and shipping industries rely on a functioning and efficient lock and dam system along the Mississippi River to move goods,” says Iowa Senator Chuck Grassley. The long-time Iowa senator was one of 19 Republicans to back the bipartisan infrastructure bill. The funds will help modernize and expand seven outdated locks at the most congested locations along the Upper Mississippi and Illinois Rivers. The Upper Mississippi River System transports more than 60 percent of America’s corn and soybeans. Enhancing the reliability and capacity of the seven highest-use and most-delayed locks will ensure an environmentally-conscious and safe method for transporting bulk commodities continues well into the next generation. Two billion dollars will go toward ecosystem restoration. *********************************************************************************** NCGA Testifies Against WOTUS Changes The National Corn Growers cautioned the EPA on Tuesday about moving forward with a rule that could give the government expanded regulatory power across American farmlands. NCGA President Chris Edgington gave testimony as the Environmental Protection Agency considers a proposed rule revising the definition of “Waters of the United States” under the Clean Water Act. The proposed rule would give the federal government leeway to assert jurisdiction over features that are remote from and carry only minor volumes of water to downstream navigable waters. “The Clean Water Act simply doesn’t allow the agencies to insert themselves into local and farmer land-use decisions in the manner that was proposed,” said Edington during testimony. “There is a limit under the CWA to the direct federal control over land-use decision and policies.” The Iowa farmer added that proper CWA policy respects the roles of each participant in the system, including landowners, citizens, and all levels of government. *********************************************************************************** Vilsack Highlights USDA’s Market Development Efforts Ag Secretary Tom Vilsack says his agency went to work early in 2021 on addressing supply chain disruptions the ag sector experienced during the pandemic. He identified a wide range of improvements, which produced a more diversified food system that serves farmers, ranchers, and consumers. “The COVID-19 outbreak has been tragic and heartbreaking for our communities and families, but the disruptions it allowed us an opportunity to identify and address vulnerable spots in our food system,” he says. “Those disruptions to the agricultural sector highlighted the need for our nation’s food system to be more diversified, thereby creating more options for producers and consumers while enhancing the resiliency of our food sector.” Vilsack highlighted several USDA steps, including providing $1 billion in American Rescue Plan funds for expanding independent processing capacity in the U.S. Also, $32 million in grants will help 167 meat and poultry processing facilities reach more customers by becoming federally inspected. *********************************************************************************** FFA Members Tour California Agriculture Earlier this month, 46 current and former state FFA officers visited California to learn about the wide variety of agriculture the state has to offer. Members recently flew into California and toured a number of the state’s agribusinesses. Stops included the largest U.S. producer of caviar, a fourth-generation ranch practicing responsible carbon farming, and many others. They also visited with California’s Secretary of Agriculture, Karen Ross, the vice-chair of California’s Water Board, and the vice president of state government affairs from Western Growers. During the second week of the tour, the FFA members visited berry farms, nurseries, a horse ranch, and a feedlot. They also went whale-watching and explored the Muir (Meer) National Forest. The young people spoke with a wide variety of agricultural experts on the trip and learned about practices they could take home to their communities. The experience was made possible through sponsorship help from John Deere and Bunge (BUN-gee). *********************************************************************************** Brazil Coffee Crop Looking Smaller Than Expected Brazil’s government says its farmers will harvest 55.74 million bags of coffee in 2022. That number is 16.8 percent higher than last year, but experts say that’s a smaller amount than most people in the world’s largest coffee producer were expecting. Reuters says the smaller-than-expected number is important because Brazil’s coffee production is the key to balancing global supplies. If the smaller numbers are realized, it could cause a deficit and sustain coffee prices that are currently around 10-year highs. Total production is going to fall far short of the 2020 record, the previous “on-year” crop, which was estimated at 63 million bags. Rabobank predicts that Brazil will harvest 63.5 million bags, while Hedge Point Global Markets is guessing 65.8 million bags. “It does confirm the general pessimism about the 2022 on-cycle crop,” says Ryan Delaney of Coffee Trading Academy. The worst drought in 90 years and several severe frost events hit Brazil’s coffee fields last year.
| Rural Advocate News | Thursday January 20, 2022 |
Thursday Watch List Markets U.S. weekly jobless claims and an update of the U.S. Drought Monitor are set for 7:30 a.m. CST, followed by U.S. existing home sales for December at 9 a.m., weekly natural gas storage at 9:30 a.m. and weekly U.S. energy inventories at 10 a.m. USDA's weekly export sales report will be released Friday morning, due to this week's holiday. Weather A strong cold front on the leading edge of arctic air continues to push southeast through the country on Thursday. A band of rain and snow is accompanying the front from the Southeast up the East Coast. Cold air has settled into the middle of the country but not for long. Another system moving through the Pacific Northwest and western Canada will start to bring showers into the Prairies and Northern Plains later today and tonight as temperatures moderate a bit.
| Rural Advocate News | Wednesday January 19, 2022 |
Vilsack Announces New 10 Year Strategy to Confront the Wildfire Crisis The Department of Agriculture Tuesday announced a comprehensive response to the nation’s growing wildfire crisis. The effort is called “Confronting the Wildfire Crisis: A Strategy for Protecting Communities and Improving Resilience in America’s Forests.” The strategy outlines the need to significantly increase fuels and forest health treatments to address the escalating crisis of wildfire danger that threatens millions of acres and many communities across the United States. The Forest Service will work with other federal agencies and partners to strategically focus on fuels and forest health treatments. The strategy highlights new research on what Forest Service scientists identified as high-risk "firesheds” – large, forested landscapes with a high likelihood that an ignition could expose homes, communities, infrastructure and natural resources to wildfire. Firesheds, typically about 250,000 acres in size, are mapped to match the scale of community exposure to wildfire. The groundwork will begin in areas identified as being at the highest risk, based on community exposure. *********************************************************************************** EPA Proposes Rule to Improve Pesticide Crop Groupings The Environmental Protection Agency Tuesday opened a 60-day comment period requesting public comments on the sixth proposed rule in a series of revisions to the pesticide crop grouping regulations. Crop groups are established when residue data for certain representative crops are used to establish pesticide tolerances for a group of crops that are botanically or taxonomically related. EPA sets these tolerances, which are the maximum amount of a pesticide allowed to remain in or on a food, as part of regulating pesticides. Specifically, EPA is proposing to amend Crop Group 6: Legume Vegetables; Group 7: Foliage of Legume Vegetables; Group 15: Cereal Grains; and Group 16: Forage, Fodder, and Straw of Cereal Grains. The proposed rule includes changes to the terminology in the names of Groups 6, 7 and 16, and the addition of commodities and modifications that increase efficiencies in assessing the risks of pesticides used on crops grown in and outside of the United States. *********************************************************************************** NBB Rebrands to Clean Fuels Alliance America The National Biodiesel Board Tuesday unveiled its new name and new brand, Clean Fuels Alliance America. The organization announced the change during the opening session of the 2022 National Biodiesel Conference and Expo. The transformation to Clean Fuels helps further the organization’s position as a proven, innovative part of America’s clean energy mix. Leaders say the change also helps the industry represent all its industry members: biodiesel, renewable diesel and sustainable aviation fuels. Donnell Rehagen, CEO of Clean Fuels, says, “Our new name and brand represents the connected energies of our members and positions our industry for a clean fuels future.” The National Biodiesel Conference and Expo’s theme for 2022 is “All In” and represents the momentum being carried by all players in the biodiesel, renewable diesel, and sustainable aviation fuel industry. This year, more than 600 attendees are hearing from experts on supply and decarbonization and the opportunities ahead for the industry. *********************************************************************************** NASDA Sets 2022 Federal Policy Focus The National Association of State Departments of Agriculture set its federal policy focus for 2022 with added emphasis on the food and production supply chain. Announced Tuesday, NASDA members selected nine issues as the organization's primary policy focus for 2022. They include the 2023 Farm Bill, animal health, climate resiliency, food safety, the food and production supply chain, infrastructure, international trade, workforce development and defining "waters of the United States." NASDA CEO Ted McKinney says, “Our members see these issues as priorities we must address to best serve the farmers, ranchers and communities in their states.” Food supply chain issues, animal health, the 2023 Farm Bill and defining WOTUS are not new issues to NASDA, but the organization is giving heightened attention to these areas in 2022. Carrying over priorities from 2021, NASDA will continue to support the creation of new free trade agreements, the expansion of broadband access and voluntary and incentive-based climate-smart agricultural programs. *********************************************************************************** Farmland Market Ended Strong in 2021 Land sales continued at a torrid pace at Farmers National Company during the last quarter of 2021. The dollar volume of land sold by the company during October through December was up 53 percent compared to last year and up 106 percent from two years ago. The number of transactions was up 23 percent, and total acres sold were up 11 percent year over year. This was indicative of the increase in the selling of land in various regions. Sellers came to the land market because of the opportunity to capture the much higher land prices and for some, to get ahead of what was once thought to be potential tax changes. Iowa continued to be the most active with selling and with setting new price highs. Going forward, Farmers National Company says land sales activity for the first quarter of 2022 seems to be leveling off to more normal for this time of year. *********************************************************************************** Small Family Farms Produce Majority of Poultry and Eggs, And Hay USDA's Economic Research Service reports most values of cotton, dairy and specialty crops are produced on large-scale family farms, according to 2020 data. USDA defines a family farm as one in which the principal operator and related family own the majority of the assets used in the operation. Large-scale family farms have an annual gross cash farm income of $1 million or more. However, small family farms produced the bulk of hay production, 59 percent, and poultry and egg output, 49 percent, in 2020. Poultry operations are often classified as "small" because most output is under a production contract arrangement, with a contractor paying a fee to a farmer who raises poultry to maturity. Additionally, more than one-quarter of beef production occurred on small family farms that generally have cow/calf operations. Another 42 percent of beef production occurred on large-scale family farms, which are more likely to operate feedlots.
| Rural Advocate News | Wednesday January 19, 2022 |
Wednesday Watch List Markets Wednesday's only official report starts early as December U.S. housing starts are set for 7:30 a.m. CST. Traders will keep close watch over the latest weather forecasts and any news of an export sale. The Energy Department's weekly inventory report is due out Thursday, due to Monday's holiday. Weather An arctic cold front continues to push southeast through the country on Wednesday. It is going to pick up some moisture from the Gulf of Mexico today with scattered showers developing for the Delta and Midsouth regions, which may include some snow tonight. Cold air continues to build in behind the front across the Plains and Midwest with another brief arctic chill.
| Rural Advocate News | Tuesday January 18, 2022 |
Groups React to Supreme Court Decision on Vaccines The Supreme Court handed down a ruling last week on mandatory COVID-19 vaccines in large workplaces. The court says the Occupational Safety and Health Administration doesn’t have the authority from Congress to impose a vaccine mandate on larger employers. The Hagstrom Report says several agricultural and food groups issued reactions to the court’s decision. The National Council of Farmer Cooperatives says, “The action shows that OSHA needs to consider other alternatives to encourage vaccinations for workers across the country. NCFC has consistently said that forcing difficult testing and enforcement actions on employers would not help achieve that goal and would likely magnify the labor shortages being experienced across the agriculture and food supply chain.” The National Grocers Association says the ruling “takes some pressure off independent community grocers who already face staffing shortages during a nationwide labor crisis.” Greg Ferrara, the NGA CEO, says grocers remain focused on doing what they do best, providing their communities with food.” *********************************************************************************** NCBA Backs WOTUS Recommendations from Advisory Committee The Environmental Protection Agency’s Farm, Ranch, and Rural Communities Advisory Committee recently issued a report on the Waters of the U.S rule. “NCBA strongly supports the committee’s recommendation to develop a clear and limited WOTUS definition and protect key exemptions for common agricultural features,” says Scott Yager, NCBA’s Chief Environmental Counselor. “NCBA encourages the EPA to listen to its own advisory committee’s recommendations, which are clear: farmers and ranchers need clear rules and regulatory certainty.” Among the recommendations are ensuring EPA’s compliance with the Clean Water Act and Supreme Court precedent limiting federal jurisdiction over bodies of water. They also recommend a clear definition of WOTUS that’s easily interpreted by farmers and ranchers and protecting WOTUS exemptions for common agricultural features like farm ditches and stock ponds, prairie potholes, and other small, isolated water features. They also recommend that EPA reconsider the roundtable process to make sure all stakeholders have a voice in the rulemaking process. *********************************************************************************** New EPA Pesticide Policy May Limit New Chemistries The Environmental Protection Agency is reversing decades of practice in an attempt to further the Agency’s compliance with the Endangered Species Act when evaluating new pesticides and ingredients. In the new policy, EPA will evaluate the potential effects of each new active ingredient on federally threatened or endangered species and their designated critical habitats before the agency will register a new AI. EPA will also initiate Endangered Species consultations with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service. The EPA typically didn’t assess the potential effects of conventional pesticides on listed species when registering new AIs. EPA says that typically resulted in not enough protection and resource-intensive litigation. The agency says its new policy should reduce these kinds of court cases and improve the legal defensibility of newly-approved active ingredients. Michael Freedhoff of the EPA says his agency is taking a “critical step” to register new pesticides in a way that prioritizes protection. *********************************************************************************** Microsoft Puts $50 Million Into Sustainable Jet Fuel Microsoft is putting $50 million into a LanzaJet facility in Georgia that will produce jet fuel from ethanol. LanzaJet says its facility will start producing sustainable jet fuel next year. Reuters says experts consider the airline industry one of the hardest to decarbonize. Governments and investors are trying to boost incentives to produce lower-carbon emitting jet fuel. LanzaJet says work is almost complete on its Freedom Pine Fuels Biorefinery. Plans are to start producing 10 million gallons of sustainable aviation fuel and renewable diesel per year from sustainable ethanol in 2023. The plant will also produce sustainable fuels from waste-based feedstocks. Last year, the White House announced a goal to lower aviation emissions by 20 percent by 2030 as environmental groups place increasing pressure on the industry to lower its carbon footprint. Microsoft created its Climate Innovation Fund that will invest $1 billion over four years to speed up the development of carbon removal technology. *********************************************************************************** Research on Hemp Compounds and COVID-19 Oregon State University researchers have identified hemp compounds that show an ability to prevent the virus that causes COVID-19 from entering human cells. The university researchers say a pair of cannabinoid acids bind to the COVID-19 spike protein, which stops the virus from infecting people. OSU says this “spike protein is the same drug target used in COVID-19 vaccines and antibody therapy.” A disease or virus follows a specific process for infecting a person, and a drug target is any molecule critical to that process that can be disrupted to stop any infection or progression. “The cannabinoid acids are abundant in hemp and many hemp extracts,” says Richard van Breemen, an Oregon State researcher. “They aren’t controlled substances like THC, the psychoactive ingredient in marijuana, and they have a good safety profile in humans.” He also says the research shows the hemp compounds were equally effective against the alpha and beta variants of COVID-19. *********************************************************************************** USDA Seizes Illegally Imported Animal Products from China The USDA’s Animal and Plant Health Inspection Service seized and destroyed more than 1,900 pounds of prohibited pork, poultry, and ruminant products from New York City-area retailers. APHIS says the items came from China, lacked the required import permits and health certificates, and therefore are considered a risk for introducing invasive plant and animal pests and diseases into the U.S. The contraband was seized over the course of October through December. The agency is concerned about these prohibited products because China is a country affected by African Swine Fever, Classical Swine Fever, Foot-and-Mouth Disease, as well as several other problems. ASF is the biggest concern as the disease has spread through China and much of Asia, as well as within parts of the European Union. In recent months, ASF was confirmed in pigs in the Dominican Republic and Haiti. ASF doesn’t affect humans but is a deadly disease that decimated China’s hog industry.
| Rural Advocate News | Tuesday January 18, 2022 |
Tuesday Watch List Markets U.S. futures markets are closed Monday for Martin Luther King Jr. Day. Grain futures will resume trading at 7 p.m. CST Monday evening. USDA's weekly report of grain inspections will be released at 10 a.m. Tuesday and is the only significant report on Tuesday's docket. Traders will pay close attention to the latest weather forecasts and watch for any news of an export sale. Weather After some warmer conditions over the last week or so, conditions are about to change again. A clipper moving across the U.S.-Canada border will bring down some cold, Canadian air across the country, starting in the Northern Plains on Tuesday and spreading southeast through the rest of the country over the next few days. Despite the drastic changes in temperature, little precipitation is expected from the system on Tuesday. It will have to wait until Wednesday as the arctic front crosses the Ohio River to gain any significant moisture as it pushes southeast the rest of the week.
| Rural Advocate News | Friday January 14, 2022 |
EIA Predicts Record U.S. Oil Production Next Year Amid talks of climate change and a future of electric vehicles, a recent forecast suggests 2023 U.S. oil production will surpass the 2019 record. The U.S. Energy Information Administration released the forecast this week, predicting U.S. oil production will average 12.4 million barrels per day in 2023. EIA Acting Administrator Steve Nalley says, “We expect global demand for petroleum products to return to and surpass pre-pandemic levels this year, but crude oil production grows at a faster rate in our forecasts.” The forecast predicts U.S. crude oil production will increase for nine consecutive quarters, from the fourth quarter of 2021 through 2023. EIA also expects OPEC to increase its crude oil production to 28.9 million barrels per day in 2023, up from an average of 26.3 million barrels per day in 2021. EIA forecasts that U.S. commercial crude oil inventories will reach 465 million barrels at the end of 2023, about 11 percent more than the end of 2021. *********************************************************************************** Nigeria Opens Market to Some U.S. Pork The United States can now export sausage and similar products to Nigeria, which this week announced it is partially opening its market to U.S. pork. The National Pork Producers Council welcomed the move by the West African nation. NPPC President Jen Sorenson says, “Nigeria has the largest GDP of any African country, with a population of just over 211 million, we are excited to be the first U.S. protein to be allowed access to the Nigerian market.” Sorenson thanked the Department of Agriculture and the Federal Republic of Nigeria for their efforts to reach an agreement. While other U.S. pork products, along with beef and poultry, remain ineligible to be exported to Nigeria, NPPC is optimistic that the country’s partial opening will lead to more access for the U.S. pork industry. The U.S. pork industry in 2021, through November, exported more than $7.5 billion of product to more than 100 countries. *********************************************************************************** AEM Releases Year-End 2021 Equipment Sales Numbers Nearly 360,000 total tractors and combines left dealer lots in 2021 in North America. U.S. and Canadian unit sales of ag tractors and combines finished 2021 with gains of more than ten percent in nearly every segment in both countries. The Association of Equipment Manufacturers released the data this week that shows U.S. total farm tractor sales gained 0.3 percent for December compared to 2020, while combine sales for the month saw a gain of 25.3 percent. Those gains contributed to a total gain for the year of 10.3 percent for tractors, and 24.7 percent for combines. In Canada, tractors sales in December grew 10.5 percent, while combines fell 17.6 percent year-over-year. However, total sales for 2021 were up 19.4 percent for tractors, and up 23.1 percent for combines. AEM’s Curt Blades says, “Sales gains over an already-successful 2020 came despite the supply chain issues and workforce challenges that made 2021 a challenging year for manufacturers.” *********************************************************************************** USDA to Invest up to $225 Million in Partner-Driven Conservation The Department of Agriculture Thursday announced up to $225 million in available funding for conservation partners through the Regional Conservation Partnership Program. The program is partner-driven and leverages collective resources to find solutions to address natural resource challenges on agricultural land. This year’s funding announcements include opportunities for projects that address climate change, benefit historically underserved producers and support urban agriculture. Natural Resources Conservation Service Chief Terry Cosby says, “We’re harnessing the power of partnership to create lasting solutions to global challenges, like climate change.” Funding is open to agriculture and silviculture associations, non-government organizations, Indian tribes, state and local governments, conservation districts and universities, among others. USDA is accepting project proposals for the program through April 13, 2022. Partners are expected to offer value-added contributions to amplify the impact of the funding in an amount equal to or greater than the NRCS investment. View the funding opportunity on grants.gov. *********************************************************************************** Nebraska Bill Seeks Funding for Small Meat Processors Nebraska Family farms and local independent meat processors stand to benefit from a bill introduced in the state Legislature, according to the Nebraska-based Center for Rural Affairs. Passed unanimously in 2021, legislation established the Independent Processor Assistance Program, which provides a roadmap for increasing local processing capacity and expanding market access for small producers. However, the bill did not include funding for the program, as lawmakers recognized it would be an ideal match for the federal relief dollars flowing to the state. How to spend those relief dollars is a question being addressed in the 2022 state legislative session. A new bill seeks $10 million in State Recovery Funds from the federal American Rescue Plan Act to fund the assistance program. Officials in 18 states, including those bordering Nebraska, have developed their own grant programs. The Center for Rural Affairs says those programs show that the Independent Processor Assistance Program can help the supply chain in Nebraska. *********************************************************************************** Bayer Launches Testing4AG Program Bayer this week announced the launch of its Testing4Ag program. The program allows research scientists from around the world to submit novel chemistries to Bayer for testing in hopes of identifying potential new modes of action to control fungal diseases, insect pests, or weeds. Testing4Ag, a part of Bayer's Open4Ag partnership development and innovation approach, seeks to develop the newest generation of crop protection products that safely and sustainably address the changing needs of producers. A Bayer spokesperson comments, “Testing4Ag will combine the transformative ideas of pioneering researchers with Bayer's knowledge, experts, and resources without taking ownership of the intellectual property participants contribute." Testing4Ag is executed in partnership with Halo and will help scientists learn more about their own compounds through testing and transparent results. The submitted compounds will be assessed via biological testing against a wide variety of plant pathogens, weed species, insect and nematode pests, and/or vectors. Learn more at www.Testing4Ag.com.
| Rural Advocate News | Friday January 14, 2022 |
Friday Watch List Markets A report on U.S. retail sales for December is due out at 7:30 a.m. CST Friday, followed by U.S. industrial production at 8:15 a.m. and an early glimpse of the University of Michigan's consumer sentiment index for January at 9 a.m. Traders will be watching the latest forecasts for rain in South America and for any sign of an export sale. Friday's futures markets close at their normal times and are closed Monday for Martin Luther King Jr. day. Weather A potent system moving through the Northern Plains is bringing a band of moderate to heavy snow through the Western Corn Belt, somewhat bound by the Missouri and Mississippi Rivers on Friday. Strong winds are also developing in the Plains. This system will make a long trek through the country, diving down into the Southeast over the weekend, then becoming a Nor'easter Sunday and Monday. Though much of the country will see impacts, drought areas in the southwestern Plains will see little precipitation out of it.
| Rural Advocate News | Thursday January 13, 2022 |
USDA: Corn and soybean production up in 2021 Increased acreage and higher yields for corn and soybeans led to record high soybean production and near-record high corn production, according to the 2021 Crop Production Annual Summary. U.S. corn growers produced 15.1 billion bushels, up seven percent from 2020 and the second-highest on record. Corn yield in the United States is estimated at a record high 177.0 bushels per acre, 5.6 bushels above the 2020 yield. Area harvested for grain, at 85.4 million acres, is up four percent from 2020. Soybean production for 2021 totaled a record-high 4.44 billion bushels, up five percent from 2020. With record-high yields in 21 states, the average soybean yield is estimated at 51.4 bushels per acre, the second-highest on record. For 2021, all cotton production is up 21 percent from 2020, at 17.6 million 480-pound bales. The U.S. yield is estimated at 849 pounds per acre, up two pounds from last year’s yield. *********************************************************************************** Latest Consumer Price Index Released The Consumer Price Index for All Urban Consumers increased 0.5 percent in December on a seasonally adjusted basis after rising 0.8 percent in November. The all-items index increased 7.0 percent before seasonal adjustment, the U.S. Bureau of Labor Statistics reported Wednesday. The food index increased 0.5 percent in December, following larger increases in each of the three previous months. Five of the six major grocery store food group indexes increased in December. The index for fruits and vegetables increased the most, rising 0.9 percent over the month as the index for fresh fruits increased 1.8 percent. The index for nonalcoholic beverages rose 0.8 percent in December, and the index for dairy increased 0.7 percent. The index for other food at home rose 0.6 percent, and the index for cereals and bakery products increased 0.4 percent. The index for meats, poultry, fish, and eggs declined in December, falling 0.4 percent after rising at least 0.7 percent in each of the last seven months. *********************************************************************************** Smaller Loans Limit Agricultural Lending Smaller sized loans limited agricultural lending activity at the end of 2021. The Survey of Terms of Lending to Farmers shows non-real estate agricultural loans at commercial banks decreased by 13 percent in the fourth quarter, and the yearly average was the lowest since 2012. The Kansas City Federal Reserve Bank released the data Wednesday and says the decline was driven by a sharp drop in operating loans and lending at banks with the largest farm loan portfolios. Despite an increase in the number of all types of loans, the average size of all non-real estate and operating loans was more than 20 percent and 30 percent less than a year ago, respectively. Despite intensifying concerns about rising input costs impacting producer returns, commodity prices remained elevated and supported profit opportunities through the end of the year. Higher costs are likely to put upward pressure on demand for credit, but strong farm income and working capital could also supplement financing for some borrowers. *********************************************************************************** EPA Renews Enlist Product Registrations with New Control Measures The Environmental Protection Agency this week issued seven-year registrations for two herbicide products, Enlist Duo and Enlist One. The new product labels incorporate robust control measures to protect non-target plants and animals, according to the EPA. Both products were set to expire in January. The new control measures include prohibiting Enlist product application when rainfall is expected to occur within 48 hours and when soil can no longer absorb water, and prohibiting irrigation that would result in runoff within 48 hours of application. EPA will also require mandatory education and training materials that emphasize the importance of pollinators and pollinator habitats. Other measures include minimizing Enlist product application when soybean and cotton crops are in bloom to reduce risks to insect pollinators, such as honey bees, and prohibiting use in counties where EPA identified risks to on-field listed species that use corn, cotton or soybean fields for diet and/or habitat. *********************************************************************************** Growth Energy Announces 2022 Policy Priorities Growth Energy Wednesday released an outline of the organization's 2022 top federal priorities for the U.S. biofuel industry. Growth Energy CEO Emily Skor says of the policy objectives, “If we want to decarbonize the transportation sector, we must use all the tools in the toolbox – including plant-based biofuels like ethanol, which reduce carbon emissions by 46 percent compared to gasoline.” Specifically, Skor highlighted the association’s key priorities, focusing on opportunities for regulators and policymakers to promote cleaner fuel choices, reduce carbon emissions, and protect the environment. The objectives incorporate restoring certainty to the Renewable Fuels Standard, including finalizing strong Renewable Volume Obligations for 2021 and 2022, rejecting improper and illegal retroactive cuts to the already finalized 2020 RVOs and rejecting all pending and improperly granted small refinery exemptions. Other priorities for Growth Energy include eliminating barriers to higher blends of low-carbon ethanol, and utilizing biofuels as a low-cost pathway to achieve climate goals. *********************************************************************************** USDA Invests $9M to Expand Reach and Increase Adoption of Climate-Smart Practices The Department of Agriculture announced Wednesday a $9 million investment in new Cooperative Extension and USDA Climate Hubs partnerships. The investment seeks to bolster climate research and connect and share climate-smart solutions directly with the agricultural community. Agriculture Secretary Tom Vilsack says the partnerships “will strengthen climate research efforts and accelerate the development, adoption and application of science-based, climate-smart practices that benefit everyone.” The investment is part of the National Institute of Food and Agriculture’s Agriculture and Food Research Initiative, the nation’s leading competitive grants program for agricultural sciences. The new program area provides effective, translatable, and scalable approaches to address climate change through regional partnerships, including the USDA Climate Hubs, and further extends outreach through organizations such as the Cooperative Extension Service. The initial six funded projects include research efforts at the University of California-Davis, Pennsylvania State University, Montana State, Ohio State University, the Desert Research Institute, and the USDA Caribbean Climate Hub.
| Rural Advocate News | Thursday January 13, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, along with weekly U.S. jobless claims, the December producer price index and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage is due out at 9:30 a.m. Traders will keep watching the latest weather forecasts and for any news of export sales. Weather With only some isolated showers in the Midwest on Thursday, most of the country's primary growing regions will be warm and dry. The combination is not favorable for wheat in the southwestern Plains where drought continues to grow.
| Rural Advocate News | Wednesday January 12, 2022 |
India Opening to U.S. Pork The National Pork Producers applaud the U.S. and Indian government’s announcement that U.S. pork exports are on their way into India, the world’s second-most populated country. “After decades of work, a market that had been closed to U.S. pork is getting opened,” says NPPC President Jen Sorenson. “We look forward to the new access.” India has a population of 1.26 billion people, which means the potential market opportunity is a significant one. U.S. Meat Export Federation President and CEO Dan Halstrom says his group has many industry contacts in India that are excited for the opportunity to bring in U.S. pork. “While the volume going into India right now is small, USMEF sees long-term potential in the retail, processing, and foodservice sectors.” USMEF also sees emerging opportunities in e-commerce. U.S. Trade Representative Katherine Tai says, “India’s agreement to allow U.S. pork imports is great news and a significant development for American producers and Indian consumers.” *********************************************************************************** Biden, Vilsack Reassure Farm Bureau Members President Biden and Ag Secretary Tom Vilsack tried to reassure American Farm Bureau members that the administration has their back. The Hagstrom Report says that, in a short video, the president assured the mostly Republican-leaning members that America needs farmers “three times a day.” Biden also pointed out that farmers deserve affordable inputs and the right to repair their equipment. Secretary Vilsack says that while ag exports have grown, challenges remain. Vilsack says that support for trade among Americans needs to get restored, adding that, “We’re going to enforce the agreements that we have. That’s the first step in rebuilding trust.” Exports to China have grown, but he says the Asian nation is “$16 billion light” under their commitment to making purchases. Vilsack also told the Farm Bureau convention that he was pleased by a USMCA trade panel that concluded Mexico was not living up to the dairy provisions. *********************************************************************************** Groups Voice Support for Existing Pesticide Law CropLife America joined more than 350 organizations engaged with pesticide products in a letter sent to Congress affirming their support for the current pesticide regulatory system. The letter is in response to legislation that would undermine the science-based standards in the Federal Insecticide, Fungicide, and Rodenticide Act. “This legislation undermines the work of the EPA’s career scientists in the evaluation of pesticide registration and use,” says Chris Novak, president and CEO of CLA. “The evaluation of each pesticide requires EPA scientists to review hundreds of studies to determine whether a pesticide can get safely used.” The groups point out in the letter that the proposed legislation would jeopardize the availability of pesticide products by imposing an unscientific process that could remove pest-control options from the market. Congress amended FIFRA several times to strengthen the regulatory standard for safety, most recently through the Food Quality Protection Act that added specific protections for infants and children. *********************************************************************************** NCGA Focusing on Driving Demand in 2022 Exports and animal agriculture make up nearly 70 percent of the annual U.S. corn demand. The National Corn Growers Market Development Action Team has a primary goal of driving demand for America’s corn farmers. “Last fall, we announced the winners of the Consider Corn Challenge, engaged with our animal ag partners on a variety of projects, and worked with trade industry partners to promote the benefits of U.S. Corn,” says Action Team Chair Troy Schneider. “We’re going to build on our wins from 2021 and continue to make strides in this space during 2022 and beyond.” Their priorities this year include increasing demand for U.S. animal agriculture domestic demand and exports; supporting research into corn and corn co-product use within animal feed; Identifying new and supporting existing industrial uses of corn; supporting the development of trade policy that opens markets, removes barriers, and advances international demand for corn and corn products. *********************************************************************************** Groups Reaffirm Support for Glyphosate Safety Groups representing farmers, ag retailers, landscaping, and golf course professionals showed strong support for continued access to glyphosate. Their response came after oral arguments in litigation regarding glyphosate registration. Ten groups, including the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, are parties in the case supporting glyphosate registration. The group reminded the court that nearly every pesticide regulatory body in the world has studied glyphosate and found the herbicide is non-carcinogenic and can get used safely. The U.S. Environmental Protection Agency found that when the product is used according to the label, glyphosate doesn’t pose a risk to human health. They also note that many important conservation practices get supported by glyphosate, such as reductions in field tillage, which cuts greenhouse gas emissions, conserves water, and improves soil health. It also helps in creating wildlife habitat, and watershed buffers can get enhanced by having access to safe and effective herbicides like glyphosate. *********************************************************************************** CattleFax Releases a Cow-Calf Survey CattleFax has released its annual Cow-Calf Survey. The information requested in the survey provides participants and the rest of the industry with valuable data regarding industry benchmarks and trends. Survey participants will get a results summary packet containing useful benchmarking information that will allow them to evaluate their own operation. The information in the packet will include cow-calf profitability, tendencies of high and low return producers, regional data, and other valuable materials are also included. To get a results packet, survey participants have to submit a valid email address. All individual results will be confidential and remain anonymous. Participants who complete the survey and submit a valid email address will also be entered into a drawing to win a $700 CattleFax voucher. The survey can get accessed at CattleFax.com, selecting the About tab at the top of the page, and clicking on the 2021 Cow-Calf Survey on the sidebar. The deadline to complete the survey is February 21.
| Rural Advocate News | Wednesday January 12, 2022 |
Wednesday Watch List Markets Wednesday has a big lineup of reports, starting with the December consumer price index at 7:30 a.m. CST and followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol production. At 11 a.m. CST, USDA simultaneously releases its WASDE report, a Dec. 1 Grain Stocks report, a Winter Wheat Seedings report and a Crop Production Annual Summary. The Federal Reserve's Beige Book comes out at 1 p.m. CST. Weather There will be very little chance of precipitation across the primary growing regions on Wednesday while temperatures will be above normal just about everywhere outside of the Southeast. Building drought continues to be a feature for the Southern Plains wheat areas
| Rural Advocate News | Tuesday January 11, 2022 |
U.S. Meat Production Slowing Meat companies and union officials tell Reuters that rising COVID-19 infections among workers are forcing meat plants to slow production and the government to replace slaughter inspectors. Meatpacking was an early epicenter of COVID in 2020 and is now the latest sector to be disrupted by the Omicron variant. Cargill, one of the country’s top beef producers, operated a few of its plants at a lower slaughter capacity last week. A Cargill plant in Dodge City, Kansas, was getting by with a skeleton crew at one point. Less slaughter capacity means a smaller beef supply is available despite booming demand for the product. Farmers also have to keep cattle longer in feed yards or on ranches. USDA estimates beef producers killed 112,000 cattle last Friday, down six percent from 2021 and matching January third levels that were the lowest since October. Pig slaughter was down about five percent from last year on Friday as well. *********************************************************************************** Farm Bureau Campaigning Against WOTUS Changes American Farm Bureau successfully campaigned last year against changes to the stepped-up basis provision in estate tax law. Now, Farm Bureau President Zippy Duvall asked members to put that same energy level into the Biden administration’s proposed changes to the Trump Waters of the United States rule. The administration wants to go back to an earlier rule that Farm Bureau says will bring the heavy hand of the federal government onto farmers’ lands. “We need that same energy and passion when it comes to WOTUS,” Duvall said during an address at the group’s annual convention. “It is critical that this administration understands that we shouldn’t need a team of lawyers and consultants just to farm our land.” Courtney Briggs, a senior director of congressional relations, says, “Farm Bureau liked the Trump rule because it created a clear line between what’s in and what’s out.” Members are urged to send comments to the EPA before February 6. *********************************************************************************** Pork Exports May Top 2020’s Record Amount Numbers from the U.S. Department of Commerce say exports of U.S. pork are on pace to top 2020’s record total of $7.7 billion. From January through November, the U.S. pork industry shipped more than $7.5 billion worth of products to foreign destinations, compared to just over $7 billion from the same period in 2020. The top five markets for American pork are China, Japan, Mexico, Canada, and South Korea, the same top five destinations from 2020. What helped boost the 2021’s numbers were countries like the Philippines, which imported 92 percent more pork in 2021 compared to 2020. U.S. pork exports also have greater access to Vietnam, which will cut its tariff on imported frozen pork on July 1. The National Pork Producers Council says it will continue to press the administration on increasing trade opportunities, including joining the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership. NPPC also wants China to drop its tariffs on U.S. pork. *********************************************************************************** USDA Offers Expanded Conservation Program The USDA’s Natural Resources and Conservation Service announced several new and expanded opportunities for climate-smart agriculture in 2022. The updates include the nationwide availability of the Conservation Incentive Contracts Option under the Environmental Quality Incentives Program. Other opportunities include a new and streamlined EQIP Cover Crop Initiative and added flexibilities for producers to easily re-enroll in the Conservation Stewardship Program. “America’s farmers are on the frontlines of climate change,” says NRCS Chief Terry Cosby. “We have to continue to support and expand the adoption of conservation approaches to support producers in their work to address the climate crisis and build more resilient operations.” NRCS is also announcing a new partnership with Farmers for Soil Health, a joint initiative of the United Soybean Board, the National Corn Growers Association, and the National Pork Board. Farmers for Soil Health works to advance the use of soil health practices such as cover crops on corn and soybean farms. *********************************************************************************** Groups Want Dicamba Lawsuit Revived A group of environmental organizations led by the Center for Food Safety and the Center for Biological Diversity wants new life given to their lawsuit over dicamba registrations. DTN says the groups are asking a federal court to lift a stay and speed up their lawsuit demanding that the Environmental Protection Agency vacate the 2020 dicamba registrations of Engenia, Tavium, and XtendiMax. The groups filed a motion in U.S. District Court while showing a new report from the EPA that they say details continuing widespread alleged dicamba damage in 2021. George Kimbrell, legal director at the Center for Food Safety, says EPA is content to sit on smoking gun evidence that it was wrong to re-register dicamba. “Our farmers and the environment can’t wait through more delays, so we’re asking the court to allow our lawsuit to proceed so we can do the EPA’s job of ensuring over-the-top dicamba use doesn’t harm agriculture or the environment,” he says. *********************************************************************************** Grain Weevil Company Wins Ag Innovation Challenge Grain Weevil Corporation is the winner of the American Farm Bureau’s eighth annual Ag Innovation Challenge. The Grain Weevil is a grain bin management robot that improves quality and eliminates the need for farmers to enter grain bins. Grain Weevil wins $50,000 in prize money to help grow their business. Nebraska-based Birds Eye Robotics was the runner-up with its autonomous robot that helps maintain poultry houses and improves animal welfare by encouraging bird activity. Caravan Tech of Alabama won the People’s Choice Award with their real-time remote management solutions for ranchers and cattle breeders. The Ag Innovation Challenge is designed to help Farm Bureau members to showcase business innovations being developed for use in agriculture. “Start-up companies like those we’re honoring at the convention help to shape the future of agriculture,” says Farm Bureau President Zippy Duvall. “It’s a pleasure to recognize these entrepreneurs for the innovative solutions they’ve developed that will help U.S. agriculture.”
| Rural Advocate News | Tuesday January 11, 2022 |
Tuesday Watch List Markets After Brazil's crop agency, Conab, issues new crop estimates Tuesday, there are no other official reports on Tuesday's docket. Traders will closely watch the latest weather forecasts and are apt to be jittery ahead of Wednesday's three USDA reports: a WASDE report, a quarterly grain stocks report and an estimate of winter wheat seedings from NASS. Weather Arctic air continues to push eastward through the country and is being replaced across the West and the Plains by much warmer air on Tuesday. Outside of some lake-effect snow this morning and a few showers for the Pacific Northwest, the country should be rather dry today.
| Rural Advocate News | Monday January 10, 2022 |
November Beef Exports Set New Value Record The value of U.S. beef exports set another record in November, topping $1 billion for the second time in 2021. USDA data compiled by the U.S. Meat Export Federation says November pork exports were lower than the previous year, but year-to-date export value maintained a record value pace. November beef exports totaled over 123,600 metric tons, up seven percent from 2020 and the fourth-largest monthly volume in the post-BSE era. The value was $1.05 billion, 49 percent higher year-over-year. Year-to-date exports through November were on a record volume pace at 1.32 million metric tons. Pork exports were over 237,500 metric tons, down eight percent from last year and a six percent reduction in value at $658 million. Through November, pork export volume fell slightly below the record pace of 2020 at 2.71 million metric tons. The value of pork exports through November reached $7.5 billion, nearing the annual record of $7.71 billion set in 2020. *********************************************************************************** Brazil Soybeans Estimates Drop Brazilian soybean crop estimates dropped sharply last week because of weather concerns. A mix of conditions that are too dry in some areas and too wet in others means the Brazil crop will no longer be a record-setter. Successful Farming says the crop should come in around 133.4 million metric tons, down from a previous forecast at 144.7 million metric tons. Rio Grande (GRAHN-day) do Sul, the third-largest bean producer in Brazil, recently saw nine out of the ten hottest temps in the country during the previous week. The top temperature was 102.2 degrees. About 15 percent of the soybeans are blooming going into the key crop development period in January and February. In Parana (pair-ah-NAH), the second-largest producing state in the country, only half of the crop is pod-filling and big losses are ahead. USDA expects Brazil to produce 144 million metric tons of soybeans, but that estimate came from the December WASDE report. *********************************************************************************** USDA Funding Will Continue to Support School Meals Ag Secretary Tom Vilsack announced that the agency made an adjustment in school meal reimbursements to help schools continue to serve children healthy meals. The move will add an estimated $750 million more into school meal programs across the nation. The goal is to make sure that federal reimbursements keep pace with food and operational costs, while ensuring children can continue to get healthy meals at school. “USDA understands that balancing the pressures of COVID-19 with the need to feed children nutritious meals continue to be a priority for schools across the country,” Vilsack says. School lunch reimbursement rates don’t typically increase during the school year. However, because of COVID, USDA allowed schools to benefit from the highest rates available, which are typically reserved for USDA’s Summer Food Service Program. The adjustment will help ensure that the purchasing power of schools can keep pace with the cost of living. *********************************************************************************** Sorghum Crop Insurance Price Election Goes Higher The USDA’s Risk Management Agency has set the sorghum crop insurance price election for reinsurance year 2022 at 99.6 percent of the price of corn, compared to 96 percent for 2021. The price election means that farmers can insure grain sorghum at a price almost identical to that of corn. “This price election gives sorghum producers their largest amount of price protection relative to corn in the history of the federal crop insurance program,” says National Sorghum Producers CEO Tim Lust. “”We are pleased that farmers will have the protection they need to meet the demand currently driving historically strong prices in the marketplace.” The sorghum crop insurance price election formula is based on a 10-year rolling average of actual sorghum bids at elevators across the U.S. A change to the formula in the early 2000s added $98 million in value to U.S. sorghum producers through increased crop insurance coverage. *********************************************************************************** American Cheese Producers and Dairy Farmers Get Court Win The U.S. District Court in eastern Virginia issued ruling that “gruyere” (groo-YAIR) is a generic style of cheese that can come from anywhere. The decision says all cheesemakers, not just those in France and Switzerland, can continue to create and market cheese under that common name. The Consortium for Common Food Names, the U.S. Dairy Export Council, the National Milk Producers Federation, and a coalition of dairy stakeholders prevailed in their battle to use the generic name. “This is a landmark victory for American dairy farmers and cheesemakers, and it sets a vital precedent in the much larger, ongoing battle over food names in the United States,” says Jaime (HY-me) Castaneda (Cast-ah-NAH-dah), Executive Director of the CCFN. The court says in its ruling that the arguments of the French and Swiss were insufficient, and that CCFN presented overwhelming evidence that cheese buyers in the U.S. understand gruyere to be a generic term with no correlation to where it’s produced. *********************************************************************************** Pork Industry Grooms Future Leaders The National Pork Producers Council and the National Pork Board kicked off the 2022 class of the Pork Leadership Institute. The institute is a jointly-funded and organized training curriculum designed to develop future leaders in the U.S. pork industry. The year-long program consists of five learning sessions between February and November. Participants will learn about the legislative and regulatory processes, the importance of international trade, the roles of national and state pork associations, and issues facing producers. They are also trained to be spokespeople for the pork industry and grassroots advocates able to disseminate pro-active, targeted messages about the industry. “PLI is vital to the success of pork producers because it develops knowledge advocates for the pork industry, and most importantly, future industry leaders,” says NPPC CEO Bryan Humphries. “Graduates are able to tell the pork industry’s story from Main Street to the nation’s capital.” Each year, between 15-20 producers are selected for the program.
| Rural Advocate News | Monday January 10, 2022 |
Monday Watch List Markets Traders will return from the weekend Sunday evening with eyes on the latest weather forecasts from South America. USDA may or may not have an export sale announcement at 8 a.m. CST and the weekly grain inspections report is due out at 10 a.m. Weather An arctic trough over the Eastern U.S. is providing for some below normal temperatures to many places east of the Rockies on Monday, but it is also dry outside of lake-effect snow around the Great Lakes. A warmup is starting in the High Plains today but will spread throughout much of the country on Tuesday and Wednesday, lasting through the rest of the week.
| Rural Advocate News | Friday January 7, 2022 |
Food Price Index Falls in December The latest Food Price index declined 1.2 points in December but remained 23 percent higher than a year ago. The index from the Food and Agriculture Organization of the United Nations averaged 133.7 points in December. Except for dairy, the values of all sub-indices registered monthly declines. For 2021 as a whole, the index averaged 125.7 points, as much as 28.1 percent above year-ago levels, with all sub-indices averaging sharply higher than in the previous year. The Cereal Price Index averaged 140.5 points in December, down 0.9 points from November. The Vegetable Oil Price Index averaged 178.5 points in December, shedding 6.1 points from recent record highs. The Dairy Price Index averaged 128.2 points in December, up 2.3 points and 17.4 percent above its December 2020 value. The Meat Price Index averaged 111.3 points in December, 17.4 percent above its year-earlier value. And the Sugar Price Index averaged 116.4 points, down 33.1 percent from November and a five-month low. *********************************************************************************** Grocers Allege Pork Price Fixing in Lawsuit Leading grocery store operators ended 2021 with a lawsuit against the pork industry for allegedly conspiring to control the industry and raise prices. Kroger, Albertsons, Hy-Vee and others filed the lawsuit against Hormel, JBS USA, Seaboard Foods, Smithfield, Triumph and Tyson, among others last week. Law Street Media reports the plaintiffs alleged the defendants and Indiana Packers Corporation entered “into a conspiracy from at least 2009 to the present to fix, raise, maintain, and stabilize the price of pork.” And the grocery store operators are seeking damages to the maximum extent allowed under law. The lawsuit was filed in the U.S. District Court of Northern California. The petitioners claim Agri Stats, an ag industry data provider, held a central role in the conspiracy. The complaint claims that beginning in 2008 or before, Agri Stats proposed a series of benchmarks to the pork industry to monitor pork production as a way to "increase their profits in the sale of pork and not to increase their pork production." *********************************************************************************** New Insurance Option for Conservation-Minded Corn Farmers Corn farmers who split-apply nitrogen have another option for insurance coverage. USDA’s Risk Management Agency this week announced the details of its Post Application Coverage Endorsement, or PACE, in certain states for non-irrigated corn. The program provides coverage for producers who split-apply nitrogen to save money, a practice also considered better for natural resources. PACE provides payments for the projected yield lost when producers are unable to apply the post nitrogen application during the V3-V10 corn growth stages due to field conditions created by weather. PACE is offered in select counties in 11 states, including Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. It is available as supplemental coverage for Yield Protection, Revenue Protection, and Revenue Protection with Harvest Price Exclusion policies. To split-apply nitrogen, growers make multiple fertilizer applications during the growing season rather than providing all the crop’s nitrogen requirements with a single treatment before or during planting. *********************************************************************************** Dry Conditions to Continue for Missouri River Basin The 2021 calendar year runoff for the Missouri River basin above Sioux City, Iowa, was 15.2 million acre-feet, 59 percent of average. The ongoing drought shows no relief in sight, and the U.S. Army Corps of Engineers is predicting runoff into the mainstem reservoir system will remain below normal. Officials say 2021 was the 10th lowest annual runoff for the Missouri River Basin in 123 years of record-keeping. Based on current runoff trends, soil moisture, and plains and mountain snowpack, the dry conditions are expected to continue, as mountain snowpack is accumulating at a below-average rate. The 2022 runoff in the Missouri River basin above Sioux City, Iowa, is forecast to be 21.7 million acre-feet, 84 percent of average. Navigation flow support for the Missouri River is forecasted to be at minimum levels for the first half of the 2022 season, which begins April 1 at the mouth of the river near St. Louis, Missouri. *********************************************************************************** 2020 Marks Decade of Decline in WIC Participation USDA’s Economic Research Service says participation in the Special Supplemental Nutrition Program for Women, Infants, and Children is declining. Fiscal year 2020 marked the 10th consecutive fiscal year WIC participation declined. On average, 6.2 million people a month participated in WIC in fiscal year 2020, a two percent drop from 2019 and a 32 percent drop from 2010. About half of all participants in 2020 were children one through four years of age, while women, 23 percent, and infants, 25 percent, made up the other half of participants. The reduction was more pronounced for women and infants than for children. Participation fell five percent for women and four percent for infants from the previous fiscal year, whereas the number of children participating fell by one percent. The program provides supplemental food packages, nutrition education, breastfeeding support, and health care referrals at no cost to low-income pregnant and postpartum women, infants, and children up to five years of age who are at nutritional risk. *********************************************************************************** U.S. Irrigated Acreage Shifting Eastward Regional distribution of U.S. irrigated acreage changed significantly from 1949 to 2017, according to data updated by USDA’s Economic Research Service this week. Trends in irrigated cropping patterns, technological advances, water availability, and changing weather drove the evolution. The arid Mountain and Pacific regions consistently irrigated the most farmland until 2007, when irrigated acreage in the Northern Plains region surpassed acreage in the Pacific region. Irrigated acreage in the Mountain and Pacific regions remained relatively constant over the 70-year period. The Northern Plains region has experienced the most substantial increase in irrigated acreage, expanding from less than two million acres in 1949 to nearly 12 million in 2017. The expansion of irrigated acreage in the Northern Plains is related to advances in groundwater pumping technologies, the diffusion of center pivot irrigation application systems, and the region’s abundant aquifer resources. The Southern Plains region experienced similar growth in irrigation until the 1980s, when dwindling groundwater supplies resulted in irrigated acreage declines.
| Rural Advocate News | Friday January 7, 2022 |
Friday Watch List Markets At 7:30 a.m. CST Friday, the U.S. Labor Department will have its monthly update on nonfarm payrolls and the U.S. unemployment rate for December -- two factors that will play an important part in Fed policy. Traders will continue to keep close watch on the latest weather forecasts and any news pertaining to export sales. Weather The Pacific Northwest region has been under near-constant bombardment by precipitation over the last couple of weeks. That continues on Friday before a drier trend develops for at least several days. The precipitation has been able to build up snowpack and reduce drought in the region quite significantly. Warmer temperatures are flowing up through the Plains as arctic air continues to shift eastward through the country.
| Rural Advocate News | Thursday January 6, 2022 |
Reduced Stigma Regarding Farmer Mental Health Farmers and people in rural areas are more comfortable discussing stress and mental health challenges. The stigma around seeking help or treatment for mental health issues is decreasing, but a new Farm Bureau research poll says it is still a factor. “Farm Bureau has been encouraging conversations to help reduce the stigma around farmer stress and mental health through our Farm State of Mind Campaign,” says Farm Bureau President Zippy Duvall. “The poll shows we’re making a difference, but there is still work to do.” Among the poll responses, four in five rural adults and 92 percent of farmers and farmworkers say they’d be comfortable talking with family and friends about solutions to stress or a mental health condition. The number of farmers and farmworkers who are comfortable talking to friends and family has grown 22 percent since April 2019. However, 59 percent of respondents say the mental health stigma is still there. *********************************************************************************** Soy Checkoff Sets New Strategic Plan to Bring Value to Farmers Farmer-leaders of the United Soybean Board announced a new strategic plan prioritizing sustainable soy solutions for global and domestic customers. The plan will also ensure value and profitability for U.S. soybean farmers. USB Chair Ralph Lott says farmer investments have fueled “groundbreaking progress” promoting U.S. soybeans. “We also know that in the years ahead, the soy industry will be faced with compelling opportunities and tough decisions,” Lott says. “The new strategic plan sets a clear path to navigate what’s ahead, capturing value, and increasing profits for farmers.” The plan will guide investments in research, education, and promotion across three priority areas: Infrastructure and Connectivity, Health and Nutrition, and Innovation and Technology. Those are divided into two additional areas of focus; supply and demand; and measured by resilience, differentiation, and reputation. “These priority areas drive our decisions and focus our efforts to create the most value and positive impact for every soybean farmer,” Lott adds. *********************************************************************************** Deere Introduces First Fully Autonomous Tractor Deere and Company helped mechanize agriculture with the first commercially successful steel plow in 1837. They recently went in a different direction by unveiling another transformative machine: a fully autonomous tractor. Wired says the new 8R tractor uses six pairs of cameras and advanced artificial intelligence to navigate its environment. It can find its way to a field when given a route and coordinates. Once there, it can plow soil or plant seeds without instructions, and the machine avoids the obstacles in each field. Farmers can also give the tractor new instructions through a smartphone app. Other tractors on the market can operate autonomously, but only in limited ways. They can follow a defined route through GPS but can’t avoid obstacles. Others feature limited autonomy but still need a farmer behind the wheel. Deere hasn’t announced how much it will cost. The 8R relies on neural network algorithms to interpret information from the cameras. *********************************************************************************** Farmers Continue to Expand Cover Crops Farmers continue to plant more cover crops. Reuters says those include everything from grasses like rye and oats to legumes (leh-GOOMS) and radishes. Some of them get converted to biofuels or fed to cattle, but most aren’t harvested because they’re more valuable when they break down in the soil. Rob Myers of the Center for Regenerative Agriculture estimates cover crops grew to 22 million acres between 2017 and 2021. That’s a 43 percent increase from the 15.4 million acres that farmers planted in 2017. “There are so many things pushing cover crops forward,” Myers says. “Carbon payments are the newest thing as we see increasing farmer interest in maintaining soil health.” He estimates that farmers will plant between 40 and 50 million acres every year by the end of the decade. Greater cover crop demand could be ahead as companies launch carbon farming programs that pay growers to capture carbon through cover crops and reduced soil tillage. *********************************************************************************** Relief in Sight for Drought-Stricken California? Record snowfall in the western U.S. that closed roads and delayed flights also brought some good news for California and its long-term drought. MSN says officials note that the state’s snowpack is now well above normal in the mountains. Snowpack in some parts of the Sierra Nevada Mountain range is more than 200 percent above the average at this time of year. California’s Department of Water Resources says the statewide snowpack is 160 percent above normal. The Sierra Nevada supplies almost a third of the state’s water needs once the snow runs down into reservoirs and aqueducts. “We couldn’t have had a better December in terms of snow and rain in the Sierra,” says Karla Nemeth, director of the DWR. Despite the December snowfall, the DWR warns against complacency. The state still needs significant precipitation in January and February to make up for the two previous winters, the fifth and second-driest on record. *********************************************************************************** Sorghum Exports Close 2021 on a High Note USDA data issued on December 16 showed that U.S. sorghum’s new export sales during the prior week were a marketing-year high of 16.6 million bushels. The vast majority of that sale went to China. The sales reported during the week of December 16 were up 27 percent from the prior week and 57 percent higher than the previous four-week average. In addition to setting a marketing-year high for sorghum sales, 12.4 million bushels were shipped to China, another marketing year high. “As of the December 16 export report, demand for U.S. sorghum, particularly from China, remains very strong,” says National Sorghum Producers CEO Tim Lust. “This marketing-year high is very assuring as we wrap up one growing season and head into the next.” Purchases of sorghum as of December 16 hit just over 200 million bushels, 63 percent of the December WASDE estimates, with eight months left in the marketing year.
| Rural Advocate News | Thursday January 6, 2022 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Thursday, the same time as weekly jobless claims, a report on the November trade deficit and an update of the U.S. Drought Monitor. November U.S. factory orders follow at 9 a.m. and the Energy Department's report on natural gas storage is at 9:30 a.m. Weather An upper-level impulse is meeting up with the arctic front moving through the Midsouth and is starting to produce wintry precipitation for the region. Some heavy snow and mixed precipitation will cause lots of hazards for those living there and then up through the Mid-Atlantic and Northeast tonight into Friday. The system will continue to push the arctic front south to the Gulf of Mexico while the cold continues to produce some dangerous wind chills in the Plains and Midwest.
| Rural Advocate News | Wednesday January 5, 2022 |
Corn, Biofuel Groups Testify to EPA on RFS Corn and biofuel groups Tuesday made comments to the Environmental Protection Agency regarding its Renewable Fuel Standard proposal. EPA proposes Renewable Volume Obligations that Growth Energy says would undercut blending requirements for biofuel in 2021, and retroactively waive 2.96 billion gallons from 2020 RVOs finalized almost two years ago. Under the proposal, 2022 volumes return to statutory levels, and the administration pledges to deny all improper small refinery exemption applications. Growth Energy CEO Emily Skor welcomed some of the changes but says the proposal “sets an extremely troubling precedent of revising finalized volumes for 2020 and back-setting volumes for 2021 rather than driving growth in renewable fuels.” National Corn Growers Association President Chris Edgington says corn farmers produce low-carbon ethanol that offers immediate emissions reductions allowing agriculture to help address climate change. Edgington adds, "our success helping you meet these commitments depends on EPA sending a clear and firm message that volume requirements will be enforced.” *********************************************************************************** U.S. Dairy Calls USMCA Dispute Panel Decision a Win The U.S. dairy industry celebrated a decision published Tuesday, which found Canada is improperly restricting access to its market for U.S. dairy products. The restrictions violate U.S.-Mexico Canada Agreement tariff-rate quota commitments. The case is the first of any kind brought before a USMCA Dispute Settlement Panel and was launched with broad bipartisan support last May. National Milk Producers Federation President and CEO Jim Mulhern says, "The United States and Canada negotiated specific market access terms covering a wide variety of dairy products, but instead of playing by those mutually agreed-upon rules, Canada ignored its commitments." TRQs are a system of tariffs negotiated between countries that allow a predetermined quantity of imports at a specified tariff rate, where that rate is often at or near zero. Any additional imports above that predetermined quantity are subject to significantly higher tariffs. In the case of U.S. dairy products, the additional Canadian tariffs typically price U.S. dairy products out of Canada’s market. *********************************************************************************** Farmer Sentiment Rises on Strengthening Current Financial Position For only the second time since May, the Purdue University-CME Group Ag Economy Barometer rose in December. This month's index climbed to 125, nine points higher than in November. The Index of Current Conditions and the Index of Future Expectations rose in December, attributable mostly to an improved perspective on current conditions in the agricultural sector. A more positive outlook regarding their farm's financial situation by ag producers was a major contributor to this month's rise. However, farmers are concerned about rising input costs, with nearly half of producers choosing it as a top concern for 2022 and supply chain issues continue to haunt the nation's agricultural sector. Forty-five percent of respondents said tight farm machinery inventories impacted their machinery purchase plans, and 39 percent said they’ve experienced difficulty in purchasing crop inputs for the 2022 crop season. The index is calculated each month from 400 U.S. farmer responses to a telephone survey. *********************************************************************************** Dallas Federal Reserve Bank Ag Survey Shows Record Yields, Prices The Dallas Federal Reserve Bank 2021 fourth-quarter survey reports improved conditions across most regions of the Eleventh District. Survey respondents noted record yields and prices for corn and cotton crops. However, they also noted extremely dry conditions and increased input costs as major concerns for 2022. Strong demand for agricultural real estate continues, with rural real estate prices increasing almost weekly in some regions. Demand for agricultural loans increased for the first time since third quarter 2015. Loan renewals or extensions fell for the fourth quarter in a row, while the loan repayment rate continued to increase. Loan volume decreased for feeder cattle loans, dairy loans and crop storage loans compared with a year ago. Meanwhile, irrigated, dryland and ranchland values rose during the quarter and increased year over year in Texas and southern New Mexico. The Dallas Federal Reserve district includes Southern Louisiana, Southern New Mexico and all of Texas. *********************************************************************************** R-CALF Recognizes Progress but Skeptical of White House Action Plan R-CALF calls the White House action plan for the meat supply chain progress, but the group remains skeptical about the plan. The effort includes government funding intended to slowly rebuild the competitive marketing channels for cattle and beef, which has created what the administration calls a "bottleneck" in the nation's food supply chain. R-CALF USA CEO Bill Bullard says, "We recognize that this level of government involvement is unprecedented, and that it's critical for reversing the decades of inattention." But Bullard says his group remains skeptical about the plan's strategy for addressing decades of nonenforcement of U.S. antitrust laws and the 100-year-old Packers and Stockyards Act. R-CALF has waited for years, and by 2019 “it was clear the government was disinclined to protect the cattle industry” from alleged packer buying practices. R-CALF alleged the practices were harming cattle producers in the group’s private antitrust lawsuit filed against the largest packers in April of that year. *********************************************************************************** USDA Announces Approval of D-SNAP for Kentucky Disaster Areas Low-income Kentucky residents recovering from severe weather outbreaks could be eligible for a helping hand from USDA’s Disaster Supplemental Nutrition Assistance Program. The Department of Agriculture Tuesday announced an estimated 14,000 households in 14 counties may be eligible to receive the food assistance. The program is for residents impacted by tornadoes, flooding and wind that began December 10, 2021. Households that may not normally be eligible under regular Supplemental Nutrition Assistance Program rules may qualify for D-SNAP, if they meet the disaster income limits and have qualifying disaster-related expenses. To be eligible for D-SNAP, a household must either live or work in an identified disaster area and have been affected by the disaster. Eligible households will receive one month of benefits equal to the maximum amount for a SNAP household of their size to meet temporary food needs as they settle back home following the disaster.
| Rural Advocate News | Wednesday January 5, 2022 |
Wednesday Watch List Markets ADP's monthly report on private sector employment is due out at 7:15 a.m. CST Wednesday, a possible clue to Friday's unemployment numbers. At 9:30 a.m., the U.S. Energy Department's weekly inventory report will be released, including the latest statistics for ethanol production. At 1 p.m. CST, the Federal Reserve will release its minutes from the latest FOMC meeting. Weather A system in the Great Lakes is producing some light snow, but the arctic weather that is rushing in behind it is spreading from the Northern Plains through the rest of the Plains and Midwest on Wednesday. Strong winds are accompanying the cold, making for some dangerous wind chills and blowing snow around and reducing visibility, creating some blizzard conditions.
| Rural Advocate News | Tuesday January 4, 2022 |
Biden Announces Meat Supply Chain Action Plan President Joe Biden and Agriculture Secretary Tom Vilsack met with farmers and ranchers at the White House Monday to announce a meat supply chain action plan. The plan includes four core strategies for creating a more competitive, fair, resilient meat and poultry sector, with better earnings for producers and more choices and affordable prices for consumers. The core strategies include expanding independent processing capacity, supporting workers at independent processors, strengthening rules to protect farmers and consumers, and promoting vigorous and fair enforcement of the existing competition laws. That includes issuing new and stronger rules under the Packers and Stockyards Act and new product of USA labeling rules so “consumers can better understand where their meat comes from.” The action plan includes $1 billion to expand independent processing capacity. The White House calls the meat and poultry processing sector a textbook example of an industry dominated by a handful of large companies, with lack of competition hurting consumers, producers, and the economy. *********************************************************************************** Industry Reacts to Meat Supply Chain Action Report Farm groups mostly welcomed the Biden administration’s meat supply chain action plan Monday. American Farm Bureau Federation President Zippy Duvall says his organization “appreciates the Biden administration’s continued work to ensure a fair and competitive meat processing system.” The U.S. Cattlemen’s Association also welcomed the action plan, which they say will bring transparency and true price discovery to the cattle marketplace and truth in labeling through the closure of the Product of the USA loophole. However, the meatpacking industry disagrees. The North American Meat Institute claims the government intervention will not help consumers or producers. NAMI President Julie Anna Potts says, “The Biden Administration continues to ignore the number one challenge to meat and poultry production: labor shortages.” Further, the organization claims the Biden administration is “conveniently ignoring” the fact the beef industry has changed little for almost 30 years, and that prices reflect supply and demand in a healthy market. *********************************************************************************** New WOTUS Slated for February Unveil Politico reports the White House and the Environmental Protection Agency target February for the administration’s WOTUS debut. WOTUS, the Waters of the United States rule, continues its seesaw reputation since first announced during the Obama administration. The Trump administration overhauled the rule, and now, the Biden administration is doing the same. The EPA moved last month to formally remove the Trump-era rule, known as the Navigable Waters protection rule. However, the rule hasn’t been in use since a federal judge in Arizona threw it out at the end of August. The American Farm Bureau said of the Trump-era rule, that it "protects water resources, respects the law and provides greater clarity so the agencies, farmers and the public can identify regulated federal waterways.” EPA Administrator Michael Regan has said he sees flaws in both versions of the rule, and wants a “durable” definition. The comment period for the new rule closes on February 7, 2022. *********************************************************************************** Wheat and Wheat Flour Prices Surge Wheat prices at the farm level rose substantially in 2021, but the changes did not result in correspondingly higher prices for consumer products made from wheat. USDA’s Economic Research Service Monday reported cash wheat prices in Kansas City, Missouri—the market price that most closely reflects the prices mills pay for wheat—were up by more than 30 percent in 2021, from the same time in 2020. The Producer Price Index for flour milling—a measure of how wholesale flour prices change over time—also rose, registering an 18 percent year-on-year increase in 2021. In contrast, prices U.S. consumers paid for wheat-containing products, as measured by the Consumer Price Index, for cereal and bakery products, is projected up two percent. The year-to-year increase is below the overall inflation rate for 2021 and similar to the previous year’s gains. The data is in line with historical precedent in which commodity prices usually represent a small share of the consumer food dollar. *********************************************************************************** France Expands Bird Flu Control and Prevention Measures The French Ministry of Agriculture last week expanded the control and prevention measures of high pathogen avian influenza. France is supervising the movements of poultry in a dense breeding area following several detections of the virus and will implement an economic support system for breeders in the area. The measures apply in a larger perimeter to limit the risks of contamination in a breeding area at high risk of spreading the virus. Movements in the new restricted area will comply with a health protocol ensuring the absence of the spread of the disease, established by the operators and validated by decentralized services. Since December 16, when the first H5N1 outbreak was confirmed at a duck farm, 22 new outbreaks have been identified. The affected farms were depopulated each time, then disinfected. A protection zone of three kilometers and a surveillance zone of ten kilometers were set up around each farm. *********************************************************************************** 2022 May Bring More Sharp Increases to Gas Prices GasBuddy reports 2022 may bring more sharp increases to fuel prices, following the steep hikes of 2021. A national average of $4 per gallon is possible this spring, largely due to pandemic recovery and rising demand before relief, or additional oil supply, arrives later in 2022. GasBuddy expects the 2022 yearly national average gas price will rise from 2021’s $3.02 to $3.41 per gallon. The national average price of gasoline is forecast to climb early in the year, peaking as high as $4.13 per gallon in June. After a hot start to the summer, prices should begin to decline, falling back to potentially just under $3 per gallon by the holiday season. GasBuddy’s Patrick De Haan says, “While Americans are likely to see higher prices in 2022, it’s a sign that the economy continues to recover from COVID-19.” The nation’s yearly gasoline bill will rise to nearly $485 billion, an increase of nearly $80 billion from last year.
| Rural Advocate News | Tuesday January 4, 2022 |
Tuesday Watch List Markets The Institute of Supply Management's index of U.S. manufacturing is due out at 9 a.m. CST Tuesday, a widely watched indicator of economic activity. Traders will continue to examine the latest weather forecasts and watch for any news of export sales. OPEC meets Tuesday and is expected to stick to its plan of increasing production by 400,000 barrels per day. Statistics from the International Energy Agency show OPEC's actual production short of its targets. Weather A blast of cold, arctic air will spread into the Northern Plains on Tuesday and come with some snow and strong winds as well. The snow and cold will spread into the Central Plains and Upper Midwest Tuesday night and spread through most of the country throughout the week.
| Rural Advocate News | Monday January 3, 2022 |
Monday Watch List Markets On the first day of 2022, traders will once again check the latest weather forecasts and watch for a possible export sale announcement at 8 a.m. CST. A report on November construction spending is due out at 9 a.m., followed by USDA's weekly report of grain export inspections at 10 a.m. At 2 p.m. CST, NASS will have its monthly Fats and Oils report, showing the latest soybean crush total. Weather A system moved through the country over the weekend and if it did not bring moderate precipitation, it at least cooled off temperatures across the southern states. The last of that system is moving through the Mid-Atlantic on Monday and the arctic cold will be brief behind it. But a new blast of arctic air is building in western Canada that will move through the country later this week. Those needing to work outdoors and livestock will enjoy a brief warmup before it moves through. The arctic blast will be brief as well, at least.
| Rural Advocate News | Friday December 31, 2021 |
Agriculture Waits for Big Decisions on Supreme Court Cases The first week of the new year could be a big one for several agricultural groups and stakeholders. The Supreme Court will likely hear several high-stakes cases that could affect America’s farmers and ranchers. A DTN report says the court recently distributed three of four agriculture cases scheduled for a January 7 conference. Those high-profile petitions include challenges to California’s Prop 12, an appeals court ruling that eliminated year-round E15 ethanol, and a long-fought Clean Water Act case dealing with Environmental Protection Agency authority over farmers and ranchers. Bayer has also filed a court petition on the Roundup settlement case that’s worth many millions of dollars. While the case hasn’t yet been distributed for a Supreme Court conference, the court recently invited the U.S. Solicitor General to file a brief in the case, asking for more information. Justices hold a conference every Friday during their session to decide what petitions they’ll accept. *********************************************************************************** The Price of Food in 2022 The new year will see inflation rates that will continue to impact the food industry and cause prices to rise at grocery stores across the country. Research firm IRI says food prices are estimated to rise by five percent during the first half of 2022. However, the level of increases will depend on each grocery store and its location. The IRI report says price increases are showing up in everyday items like breakfast meats, frozen poultry, and pet food. Prices of produce like potatoes and celery are expected to increase because of higher freight costs. Fortune.com says other factors contributing to the jump in the price of food are higher oil prices and companies that have to pass on the cost of more expensive transportation. Major food distribution companies recently announced price hikes heading into 2022. General Mills, Kraft Heinz, and others are raising prices on candy, cereal, Jell-O, and many other products. *********************************************************************************** Ethanol Production Rises Slightly The Energy Information Administration says ethanol output rose slightly week-to-week while stockpiles declined. Production of the biofuel increased to an average of 1.059 million barrels a day during the week ending on December 24. That’s up from an average of 1.051 million barrels a day during the previous week. In the Midwest, which is by far the biggest-producing region, output increased to an average of 1.001 million barrels per day, up from 991 million barrels a week earlier. That was where all the gains took place as East Coast and West Coast production remained at 12,000 barrels a day and 10,000 barrels, respectively. Production in the Rocky Mountain and Gulf Coast regions dropped to 23,000 barrels a day and 13,000 barrels, respectively. Ethanol inventories during the week ending on December 24 fell to 20.76 million barrels, down from 20.705 million the week before. That’s the lowest level since the week ending on December 3. *********************************************************************************** Drought Monitor Shows Slight Decrease in Midwest Dryness The latest U.S. drought monitor shows that mostly dry weather with much-above normal temperatures persisted through the central and southern Great Plains recently. As of December 28, month-to-date temperatures in the southcentral U.S. were more than seven degrees above normal. Widespread precipitation in the Midwest supported a slight decrease in dry soils across parts of Minnesota. However, long-term deficits continue in other parts of the Upper Mississippi River Valley. Western Wisconsin also saw small improvements, while moderate to severe drought expanded slightly in southern Wisconsin. A small area of severe drought showed up west of St. Louis, while parts of Missouri saw an increase in abnormal dryness. Another expansion of drought classification took place in Kansas due to worsening soil-moisture conditions. The Drought Monitor says increasing snowpack led to improving drought conditions in the Central Rockies. The Monitor also showed a slight decrease in abnormal dryness and moderate drought across central and eastern North Dakota.
| Rural Advocate News | Friday December 31, 2021 |
Friday Watch List Markets Don't pop the champagne just yet -- U.S. grain and livestock futures have one more day of trading Friday and will close at normal times. There are no official reports on the docket and USDA offices will be closed. With few players minding the markets and trading volume apt to be low, be careful of pre-holiday manipulation. Grain futures resume trading Sunday evening at 7 p.m. CST. Weather A system in the Southwest will start to move into Texas Friday night. Ahead of it, cold arctic air is flowing south through the Plains and showers will develop later in the day along and south of a front from Texas through the Ohio Valley. Freezing rain and moderate to heavy snow will develop across the Central Plains tonight and the whole system will spread eastward through the weekend. Meanwhile, cold arctic air will flow in behind the system with dangerous wind chills. Some precipitation will get into the southwestern Plains where it is desperately needed, but amounts are going to be on the lighter side and unable to move the needle on the ongoing drought.
| Rural Advocate News | Thursday December 30, 2021 |
China to Approve Domestic GMO Corn Varieties The Chinese government considering safety approval for more genetically modified corn varieties put out by its domestic producers. Bloomberg says that could lead to planting more of these crops within the world’s top corn buyer. China’s agriculture ministry is looking for public opinion on the safety approval of three GMO corn varieties and seven new GMO cotton strains. Beijing allows imports of GMO crops for processing, and they can’t be used as seeds. Genetically modified crops are grown by many of the world’s top crop producers, including the U.S., Brazil, and Argentina. Other countries limit their use due to health and environmental concerns. China’s move comes as the country has bought large amount of grain supplies from around the globe to feed their hog herd, which is still recovering from African Swine Fever. Beijing focused more on its own food security through the past year, including more self-sufficiency in staple grains. *********************************************************************************** New York Will Require Biofuel Blending in Heating Oil New York will soon be the biggest state to require biodiesel to be blended into its heating oil. Recent legislation says that starting in July 2022, petroleum-based heating oil sold in the state will get blended with increasing amounts of biodiesel. The goal of the move is to help New York get to its goal of lowering greenhouse gas emissions. Biodiesel industry advocates estimate that the fuel will cut New York’s annual petroleum diesel consumption by about 200 million gallons every year. That will drop the state’s annual carbon emissions by roughly one million metric tons. New York’s governor says the bill is a step toward meeting the goals of the state’s Climate Leadership and Community Protection Act. All heating oil sold in New York must have at least five percent biodiesel by July 1, 10 percent by 2025, and 20 percent by 2030. Blending requirements are already in effect in Long Island and New York City. *********************************************************************************** Farmland Prices in 2022 U.S. farmland supply-and-demand is different than in recent years. As commodity prices rose this year and investor interest returned to the market, the supply of available farmland followed suit. Randy Dickhut of Farmers National Company tells Ag Web Dot Com that over the past year, most of the Grain Belt saw increasing amounts of land getting sold. “A number of states saw at least a 10 percent rise in the number of transactions,” Dickhut says. Schrader Real Estate and Auction company tells Ag Web that his firm had twice as many sales above $10,000 an acre as they did in 2019. This year saw 60 percent more sales above $10,000 per acre than they did last year. Dickhut says if the factors supporting land prices stay pointed in the same direction, the market should stay firm and may even climb somewhat higher. “Things could change if those factors change, or unexpected events take place,” Dickhut says. *********************************************************************************** Consumer Spending on Food Dropped 10 Percent in 2020 During COVID-19 and the economic recession of 2020, the share of consumers’ disposable personal income spent on food dropped 10.1 percent from the previous year to 8.62 percent. The USDA says that’s the lowest share in the past 60 years. Disposable Personal Income is the amount of money that consumers have left to spend or save after paying taxes. The share of consumer DPI spend on food in the U.S. stayed steady for two decades. It dropped from 9.95 percent in 2000 to 9.58 percent in 2019. Consumers spent 1.4 percent more of their incomes on food bought for home consumption from 2019 to 2020. During the same period, they spent 22.2 percent less of their incomes outside of the home. Changes in percent of income spent on food in 2020 came about because of COVID-19-related closures and restrictions on food-away-from-home establishments, and the biggest increase in DPI in 20 years, thanks in part to stimulus payments and unemployment insurance.
| Rural Advocate News | Thursday December 30, 2021 |
Thursday Watch List Markets There will be initial and continuing jobless claims and a Chicago Purchasing Managers Index (PMI) report out early. We will also be watching for any weather changes for South America, and we will watch for any new export sales and the weekly export sales out at 7:30 a.m. CT. Weather After some severe weather moved through on Wednesday, lingering showers continue in the Southeast on Thursday with some potential for localized flooding. Cold still remains across the northern tier of the country while dryness continues to hurt wheat in the southwestern Plains.
| Rural Advocate News | Wednesday December 29, 2021 |
More Planting, More Uncertainty Ahead The Wall Street Journal says farmers plan to plant more corn, soybeans, and wheat than last year, but they also face more uncertainty. The Wall Street Journal says a banner year for grain prices has U.S. farmers planting even more commodities than they did last year. However, high fertilizer prices, forecasts for more weather challenges, and the threat of China slowing its demand for global commodities may put a damper on the anticipation. “Row crops this year soared to highs not seen in years,” the Wall Street Journal article says. “Those highs came about because of surging global demand and inflation, so farmers will likely increase planting as they try to sustain the momentum of 2021.” However, analysts and investors say geopolitics may bring more volatility to prices next year. The biggest potential disruptions to international trade include U.S. and China tensions and the Russian troop buildup near Ukraine’s border. *********************************************************************************** U of Illinois Sees Higher Corn and Soybean Break-Even Prices The University of Illinois’ Department of Agricultural and Consumer Economics set its corn and soybean break-even prices for 2022. Break-even prices farmers need to reach to cover their total cost of production are projected at $4.73 a bushel for corn and $11.06 a bushel for soybeans. These break-even prices are quite high compared to historical levels. From 2013 to 2021, actual break-even prices for corn averaged $4.00 a bushel, well below the 2022 projected level. The break-even prices for soybeans averaged $8.92 a bushel, well below the 2022 level. While many recent bids were above break-even levels, the higher break-evens present a risk in 2022 as corn and soybean production costs will increase to record levels. The factors pushing costs higher include high commodity prices, inflation pressures, and supply disruptions. By far, the input with the biggest cost increase will be fertilizer. The University of Illinois says commodity pricing some grain at current levels would be prudent. *********************************************************************************** Price of Food Moves Higher in November The USDA says the Consumer Price Index for Food moved higher in November, rising 0.5 percent from October to reach levels that are 6.1 percent higher than November 2020. The level of food price inflation varies depending on whether the food was purchased for consumption at home or away from home. The food-away-from-home, or restaurant purchases, CPI increased 0.6 percent in November 2021 and was 5.8 percent higher than November of last year. The food-at-home, or grocery store purchases, CPI increased 0.3 percent from October to November and was 6.4 percent higher than November 2020. So far this year, the year-to-date average food-at-home prices have increased 3.1 percent and food-away-from-home prices increased by 4.2 percent. The all-food Consumer Price Index combined to jump by an average of 3.6 percent. The beef and veal category had the biggest relative price increase of 8.7 percent. The vegetable category saw the smallest jump at 0.9 percent. *********************************************************************************** Weekly Wheat Export Inspection Numbers Rise The USDA says inspections for overseas wheat deliveries rose week-to-week while corn and bean assessments dropped. Wheat inspections during the seven days ending on December 23 totaled 271,350 metric tons. That’s up from almost 227,000 tons the week prior, but well below the 407,400 metric tons examined during the same week in 2020. Corn assessments totaled 719,000 metric tons, down from one million tons the previous week. It’s also down from the 1.27 million tons inspected during the same time in 2020. Soybean inspections came in at 1.58 million metric tons, down from 1.89 million the previous week. During the same week last year, the agency inspected 2.27 million metric tons for export. Since the current marketing year began, the USDA has inspected 12 million metric tons of corn for delivery, down from 14.1 million tons last year. Soybean inspections total 28.9 million tons, down from 37.5 million. Wheat inspections are at 11.9 million tons after 14.5.
| Rural Advocate News | Wednesday December 29, 2021 |
Wednesday Watch List Markets There are very few reports on the U.S. government docket on Wednesday, except for a pending home sales index report. We will be focused on primarily any weather updates from South America, and any new 8 a.m. export sales announcements. We will also be looking for the EIA's weekly ethanol production report. Weather A frontal boundary from north Texas up through the Ohio Valley is going to be the feature of the day as a system moves along it Wednesday. Thunderstorms will be aided by moisture from the Gulf of Mexico to produce potentially severe weather along and just south of the boundary across the Delta and Tennessee Valley, including potential for a few tornadoes. Cold conditions have spread a bit farther south and east with bone-chilling cold in the Canadian Prairies through the Northern Plains while heat remains south of the front.
| Rural Advocate News | Tuesday December 28, 2021 |
U.S. Hog Inventory Down Four Percent As of December 1, U.S. farms held 74.2 million hogs and pigs, a four percent drop from the same time in 2020. It’s also a one percent drop from September 1, 2021. Those numbers come from the latest Quarterly Hogs and Pigs Report published by the National Agricultural Statistics Service. Of those 74.2 million hogs and pigs, 68 million were market hogs, and just over six million were kept for breeding. Between September and November of this year, U.S. farmers weaned 33.7 million pigs, down four percent from the same period in 2020. Hog producers also weaned an average of 11.19 pigs per litter. U.S. hog producers intend to have 2.94 million sows farrow between December 2021 and February 2022. They’ll also have just over three million sows farrow from March to May 2022. Iowa had the largest inventory among the states at 23.8 million head, followed by Minnesota at 8.9 million. *********************************************************************************** Dairy Checkoff Drives 2021 Sales Growth Despite the challenges brought on by COVID-19, the Dairy Checkoff continued to help its foodservice partners to grow sales of U.S. dairy foods. Dairy Management Incorporated, the organization that oversees the checkoff, says more domestic dairy got shipped into the international marketplace in 2021. The checkoff continued its effort to connect with the Gen Z consumers, while the dairy industry’s sustainability journey reached new levels during a busy year. DMI CEO Barbara O’Brien says the dairy checkoff delivered on its mission to drive sales and trust. “We not only adapted to the realities of COVID, but we used it as an opportunity to become even more consumer-centric, more efficient, and more collaborative,” O’Brien says. She points out the continued success of the checkoff’s partnership with globally-recognized companies like Domino’s, Taco Bell, and McDonald’s. Overall dairy sales at those chains grew between three and six percent this year. *********************************************************************************** China’s Pork Production Increases Mean More Grain Imports A recent Bloomberg report says China, which consumes half the world’s pork, has a goal to be mostly self-sufficient in pork production. That means it will need more grain imports to feed the world’s biggest pig herd. China’s agriculture ministry says the country will maintain a target to produce 95 percent of their protein at home by 2025. It wants to be self-sufficient in poultry and eggs, 85 percent for beef and mutton, and 70 percent for dairy. Farm Policy News says the targets will likely bolster overseas purchases of soybeans and feed grains needed to fatten hogs, cattle, and poultry. China is already the world’s largest importer of soybeans and corn. The Asian nation has been purchasing unprecedented amounts in the past two years to help feed a hog herd recovering from Swine Fever. China’s president Xi (Zhee) Jinping recently urged his country to protect farmland and expand soybean and oil crops planting. *********************************************************************************** Kansas City Southern Railroad Sale Completed Kansas City Southern says its sale to Canadian Pacific Railway is officially complete. The deal is estimated to be worth $31 billion. CP President and CEO Keith Creel says it’s a historic day for both companies. “CPKC will become the backbone connecting our customers to new markets, enhancing competition in the U.S. rail network, and driving economic growth across North America,” Creel says. “All of this happens while we will deliver significant environmental benefits. We’re excited to be on a path to creating a truly unique North American railroad.” The Kansas City Southern board of directors and management team says they are proud of the countless contributions and achievements of all those who work for KCS. A company statement says, “We are excited for the possibilities that open to us through this combination with CP and look forward to the next chapter.” The companies await approval from the Surface Transportation Board allowing CP’s control of KCS railroads.
| Rural Advocate News | Tuesday December 28, 2021 |
Tuesday Watch List Markets There are very few reports on the U.S. government docket, but Tuesday will feature the S & P Case-Shiller home price index. We will be watching for any new sales announcements on Tuesday, and the updated South American weather forecast. Later Monday the CFTC will be out with their COT report and it will be interesting to see the fund positions. Weather A storm system is moving out of the Plains and through the Midwest on Tuesday. More widespread moderate precipitation is falling with this system than the one that moved through Sunday into Monday with snowfall impacts to more of the Midwest as well. Some light snowfall is moving through the Northern Plains, where temperatures have fallen and should remain well below normal. The southwestern Plains continue to get missed as drought builds throughout the region. Temperatures will remain tight across the middle of the country with a sharp gradient from cold in the northwest to warm in the southeast.
| Rural Advocate News | Monday December 27, 2021 |
N.C. “Right to Farm” Act Upheld in Court of Appeals A three-judge panel unanimously dismissed a challenge to the North Carolina “Right to Farm” Act. National Hog Farmer says the challenge got brought by the Rural Empowerment Association for Community Help, North Carolina Environmental Justice Community Action Network, and Waterkeeper Alliance in 2019. The ruling was similar to a decision made earlier this year by a special panel of three Superior Court Judges. In 2017, North Carolina lawmakers passed legislation to clarify and strengthen the state’s Right to Farm laws to protect and ensure farming can continue in the state. The Act first got passed in 1979 and then further strengthened in 2013. Legislators added more clarification in 2017 and 2018 after a federal judge allowed nuisance lawsuits to get filed against swine farms in federal court. This case got brought against the Right to Farm Act as a whole, so there is a possibility it could get challenged again in the future over a specific incident. *********************************************************************************** Ethanol Stocks Unexpectedly Decline American ethanol inventories took a surprising drop last week while production also fell. The Energy Information Administration says U.S. ethanol inventories totaled 20.7 million barrels during the week ending on December 17. That’s a drop of almost 200,000 barrels from the prior week. Dow Jones industrial analysts did a recent survey that found stocks forecast to rise anywhere from 200,000 barrels to over 300,000 barrels. Daily production also dropped during the week, with production down by 36,000 barrels per day to 1.05 million a day. Analysts had expected production to rise slightly from the previous week. The Midwest is by far the largest producing region in the country, but output still fell to 991,000 barrels a day, on average, from 1.025 million barrels the previous week. Output for the week ending December 17 was the lowest total in three weeks. Inventories were down narrowly, falling to 20.705 million barrels, down from 20.88 million barrels the previous week. *********************************************************************************** CA Farmers Lose Billions Over Supply Chain Challenges After already struggling with drought, California farmers have lost big overseas sales numbers because of a serious shortage of shipping containers brought on by COVID-19. A study from the University of California-Davis says the state’s farm belt lost $2.1 billion in exports during a five-month stretch this year because of “containergeddon.” A University of Connecticut study says the supply chain mess tying up world commerce has caused California growers 17 percent of their export sales from May to September. California nut tree farmers lost big, with estimates at $520 million, followed by the wine industry at $250 million and rice growers losing $120 million. Industry experts tell the Sacramento Bee that some export sales are gone and not just delayed. The tree nut market is very seasonal, with big demand at Christmas time, which is now gone for good. The U.C.-Davis report says the losses this year are larger than the financial damage done during the 2018 U.S.-China trade war. *********************************************************************************** USCA Leads Effort to Feed Communities Hit by Tornadoes The U.S. Cattlemen’s Association’s Independent Beef Processing Committee led an effort to help communities hit hard by tornado damage. More than 800 pounds of beef is on its way to feed communities in Western Kentucky. At least 74 people, including 12 children, perished, and more than 100 people are still missing after the devastating storms hit the area. “We cannot imagine what these residents must be going through as they grieve those they have lost in the storms and survey the damage to their homes and communities,” says USCA President Brooke Miller. “Our members stepped up in the best way we know how by offering a small reprieve in the form of homegrown American beef.” The Louisville-based nonprofit called The Lee Initiative will host a Christmas Eve dinner for community residents and first responders using the beef donated by USCA members. “We hope this Christmas Eve dinner provides a touch of the holiday spirit,” Miller adds.
| Rural Advocate News | Monday December 27, 2021 |
Monday Watch List Markets Still full of figgy pudding, grain traders returned Sunday evening at 7 p.m. CST and will be hawking over the latest weather forecasts. On Monday, other than USDA's weekly report of grain inspections at 10 a.m. CST, there are no other significant reports scheduled beyond the chance of a possible export sales announcement at 8 a.m. CST. Weather A system in the Midwest is pulling north into Canada, but there is another one waiting in the West that will move through again on Tuesday. Heavy snow has already fallen with the first over North Dakota, Minnesota and Wisconsin. The second should produce more moderate to heavy snow a bit farther southeast Tuesday. Meanwhile, cold, arctic temperatures are spilling into the Northern Plains, where they will be all week. And very warm weather is found down South and Southeast to end the year.
| Rural Advocate News | Thursday December 23, 2021 |
Massachusetts Delays Effective Date of Question 3 Following approval by the Massachusetts Legislature, Governor Charlie Baker Wednesday signed into law a measure delaying implementation of the state's Question 3 initiative. Delayed until August 15, 2022, the 2016 ballot initiative, like California’s Proposition 12, will ban the sale of pork from hogs born to sows housed in pens that don’t comply with Massachusetts’ new standards. It applies to any uncooked pork sold in the state, whether it’s produced there or outside its borders. Nearly all pork currently produced in the United States fails to meet Massachusetts’ arbitrary standards. National Pork Producers Council President Jen Sorenson says, "Question 3, like Prop. 12, lacks any scientific, technical or agricultural basis and only will inflict economic harm on America's pork producers." In addition to delaying the initiative's implementation, the compromise measure requires the Massachusetts Department of Agricultural Resources to write rules and regulations for the law, in consultation with the state's attorney general within six months. ***********************************************************************************= Canada Reports Atypical BSE Case Canada recently reported a case of atypical bovine spongiform encephalopathy (in-sef-o-lop-athy) in an eight-year-old beef cow on a farm in Alberta. The Canadian Food Inspection Agency notified the World Organization for Animal Health of the case. Canada says the detection and reporting of an atypical BSE case will not affect the OIE negligible risk status of Canada, and market access for Canadian animals and beef products should be unaffected. However, South Korea, the fourth-largest beef importer in the world, suspended imports of Canadian beef and is seeking more information before lifting the suspension, according to Reuters. The case is atypical, meaning that it is a form of BSE that can occur naturally in older cattle, as opposed to classical BSE, caused by an animal eating contaminated feed. The cow was euthanized and did not enter the food system. The Canadian Government reports it is working with the beef industry to maintain the confidence of international trading partners. *********************************************************************************** Donations Announced for Tornado Outbreak, Kansas Wildfire Victims Several of the country's leading agricultural cooperatives are mobilizing to support communities impacted by severe weather that swept the South and Midwest this month. AgFirst, CoBank, Farm Credit East, Farm Credit Illinois, Farm Credit Mid-America, Farm Credit Services of America, Farm Credit of Western Arkansas, Land O'Lakes, and Rural 1st have committed nearly $700,000 to national, state and local charities. The beneficiaries are the American Red Cross, Feeding America, the Kentucky Agriculture Relief Fund, the Kentucky Rural Electric Disaster Fund, the Tennessee Farm Disaster Response Fund, the Mayfield Tornado Relief Fund, and Rotary International Dresden, Tennessee. Meanwhile, Tyson Foods donated $100,000 in wildfire relief to Kansas farmers and ranchers. The Kansas Livestock Foundation is accepting donations to support farmers and ranchers impacted by the fire. The fires burned an estimated 400,000 acres across four counties, a region home to several cattle suppliers for Tyson Foods. *********************************************************************************** Culver’s "Thank You Farmers" Donations Surpass $3.5 Million Culver's Thank You Farmers Project has now raised more than $3.5 million since its creation in 2013. In 2021, the program raised $500,000 toward its mission of advocating for the positive impact agriculture has on the world. Culver's reaches the milestone at a critical time, as the rapidly growing world population places increasing reliance on a climate-smart agricultural system to produce an abundant, nutritious food supply. Money raised through the project directly supports people making a positive impact in the industry, including those involved with local agriculture efforts in the communities Culver's calls home and larger, national projects advancing the industry. Culver's also took steps in 2021 to support the creation of a more resilient and sustainable agricultural future by joining the Decade of Ag Movement. The Decade of Ag Movement is the first food and agriculture sector-wide movement to create a shared vision for a climate-smart agricultural system.
| Rural Advocate News | Thursday December 23, 2021 |
Thursday Watch List Markets With U.S. futures markets closed Christmas eve, Thursday is the final day of the trading week and starts with USDA's weekly export sales report at 7:30 a.m. CST, the same time as U.S. jobless claims, U.S. personal incomes, durable goods orders for November and an update of the U.S. Drought Monitor. U.S. new home sales for November and the University of Michigan's consumer sentiment index for December are both set for 9 a.m. USDA's quarterly hogs and pigs report and December 1 cattle on-feed estimates are both due out at 2 p.m. CST. U.S. grain futures close at normal times Thursday and resume trading at 7 p.m. CST Sunday, December 26. Weather A large system is brewing in the western states Thursday. A piece of it will move through the Canadian Prairies and there are a few showers moving through the northern Midwest, but dry and warm conditions are expected for most areas east of the Rockies.
| Rural Advocate News | Wednesday December 22, 2021 |
Deadline Extended to Apply for Pandemic Support for Organic Operations The Department of Agriculture Tuesday extended the deadline for farmers who are certified organic, or transitioning to organic, to apply for pandemic assistance. The Organic and Transitional Education and Certification Program helps cover certification and education expenses. The deadline to apply for 2020 and 2021 eligible expenses is now February 4, 2022, rather than the original deadline of January 7, 2022. Certified operations and transitional operations may apply for eligible expenses paid during the 2020, 2021 and 2022 fiscal years. Signup for the 2022 fiscal year will be announced at a later date. For each year, the program covers 25 percent of a certified operation’s eligible certification expenses, up to $250 per certification category – crop, livestock, wild crop, handling and State Organic Program fee. This includes application fees, inspection fees, USDA organic certification costs, state organic program fees and more. Producers can learn more and apply through their local FSA office. *********************************************************************************** Wages, Input Costs and Supply Chain Problems Pushing up Pork Prices but Not Profits University-level researchers say pork prices, not industry profits, are rising. Economists from Iowa State University and North Carolina State University released the report Tuesday with the National Pork Producers Council. The report shows prices are rising due to increased transportation costs, supply bottlenecks and delays and increased labor costs throughout the supply chain, caused or intensified by the COVID-19 pandemic. NPPC President Jen Sorenson says, “increased profits, whether at the retail, wholesale, or farm level, are likely not a significant contributor to the rising prices.” Other factors include a 2.5 percent loss in pork packing capacity that resulted from a federal court order stopping faster harvesting line speeds, higher energy costs, rising feed costs, and a shortage of workers, which hindered productivity and caused wages to increase. NPPC says the long-term outlook for labor, a critical factor in easing supply chain challenges and high prices, is dependent on future immigration policy and agricultural labor reform. *********************************************************************************** Stabenow: Trump USDA Picked Winners, Losers in Trade Damage Payments The nonpartisan Government Accountability Office released a report this week on the implementation of the Department of Agriculture’s Market Facilitation Program in 2018 and 2019. The report shows that payments by USDA significantly overestimated the actual trade damages suffered by producers of eligible commodities. The report also found the calculation method USDA used in 2019 for payments to non-specialty crop producers resulted in higher payments for Southern farmers than producers of the same crop in other parts of the country. U.S. Senator Debbie Stabenow, A Michigan Democrat and Chair of the Senate Ag Committee, responds, “This report confirms that the Trump USDA picked winners and losers in their trade aid programs and left everyone else behind.” Stabenow added that making larger payments to farmers in the South than farmers in the Midwest or elsewhere, regardless of whether those farmers actually experienced a larger loss, undermines the future ability to support farmers when real disasters occur. *********************************************************************************** USDA Awards $500,000 to Texas A&M for International Fellowship Program The Department of Agriculture Tuesday gifted Texas A&M University $500,000 this holiday season to establish international fellowship programs. The award is for the University’s Norman Borlaug Institute to establish and teach school-based programs in Guatemala through the International Agricultural Education Fellowship Program. Administered by USDA’s Foreign Agricultural Service, Administrator Daniel Whitley says the program will “help meet the food and fiber needs of Guatemalan communities.” That objective, according to Whitley, aligns with the Biden administration’s priorities for addressing the root causes of migration from the Northern Triangle region of Central America. Each Fellow will spend up to ten months in Guatemala during the 2022-2023 school year teaching agricultural skills and training youth at secondary schools and rural communities, activities that also support the U.S. Government Global Food Security Strategy. While on the ground, fellows will collaborate with existing U.S. Government projects to ensure synergy and to maximize benefits across programs.
| Rural Advocate News | Wednesday December 22, 2021 |
Wednesday Watch List Markets At 7:30 a.m. CST Wednesday, third-quarter U.S. GDP will get its third estimate, followed by a report on November U.S. existing home sales and an index of consumer confidence at 9 a.m. The Energy Department's weekly inventory report is set for 9:30 a.m., likely to show another active week of ethanol production. USDA's monthly cold storage report will be released at 2 p.m. CST. Weather A system is moving into western states on Wednesday with showers spreading through the region, though concentrated toward the coast. Outside of the Northeast, all other areas will be dry during the day as conditions continue to be poor for winter wheat in the southwestern Plains.
| Rural Advocate News | Tuesday December 21, 2021 |
USDA Expands Partnerships for Conservation USDA is leveraging its authorities under the Conservation Reserve Enhancement Program to bring in new types of partners and expand opportunities in voluntary conservation. In direct response to feedback from stakeholders, USDA updated the program’s rule regarding matching fund requirements, and invested in additional staff to work directly with partners. The program is part of the Conservation Reserve Program and enables USDA’s Commodity Credit Corporation, through Farm Service Agency, and partners to co-invest in partner-led projects. The program also plays an important role in USDA’s broader climate change strategy, bringing together producers, landowners and partners for climate-smart land management. The rule also updated policy to provide a full annual rental rate to producers impacted by ordinances and regulations that require a resource conserving or environmental protection measure. At present, all partners are States. However, FSA is strongly encouraging Tribes and non-governmental organizations to consider partnerships. Currently, the program has 34 projects in 26 states, and more than 860,000 acres are enrolled. *********************************************************************************** USDA Seeks Nominations for Membership on Food Safety Advisory Committee The Department of Agriculture's Food Safety and Inspection Service is soliciting nominations for membership to the National Advisory Committee on Meat and Poultry Inspection. USDA expects to appoint committee members in 2022. Agriculture Secretary Tom Vilsack says, "attracting and appointing individuals from diverse perspectives and expertise to serve on (the committee) will be essential to accomplishing our food safety goals." USDA seeks nominations from individuals with knowledge and interest in meat and poultry food safety and other FSIS policies. USDA also seeks representation of small and very small establishments and geographic diversity of members. Persons in academia, industry, state and local government officials, public health organizations, and industry and consumer organizations are invited to submit nominations, and self-nominations are welcomed. Established in 1971 by FSIS, the committee consists of 20 members and provides advice and recommendations to the Secretary of Agriculture on food safety concerns. Nominations packages must be received by February 18, 2022. *********************************************************************************** EPA Extends Expiration Deadline for Pesticide Applicator Certification Plans The Environmental Protection Agency recently extended the expiration deadline for pesticide applicators certification plans. The 2017 Certification of Pesticide Applicators final rule had set stronger standards for people who apply restricted-use pesticides and required authorities with existing certification plans to submit proposed modifications by March 4, 2020, to comply with the updated federal standards. As specified in the rule, existing certification plans remain in effect until EPA completes its reviews and approves the proposed plan modifications, or until those plans otherwise expire on March 4, 2022. Due to the coronavirus pandemic, EPA is extending the existing plans' expiration deadline from March 4, 2022, to November 4, 2022. EPA has reviewed all proposed plan modifications and is making progress on sending agency comments to certifying authorities. To date, EPA has completed 45 final reviews of the 68 plans submitted by certifying authorities. During the extension, EPA and certifying authorities will continue to work together so that all plans meet the federal standards. *********************************************************************************** Fuel Prices Continue Decline Ahead of Christmas The nation's average gas price declined for the sixth straight week, down 2.9 cents from a week ago at $3.30 per gallon. The national average is down 11 cents from a month ago and $1.09 per gallon higher than a year ago. The national average price of diesel declined two cents in the last week and stands at $3.58 per gallon. Patrick De Haan of GasBuddy says, “The decline in gas prices will likely continue until new Covid cases slow down.” De Haan says the U.S. may see Christmas gas prices fall just under their all-time high on the holiday, which was $3.26 in 2013. Beyond Christmas, with omicron cases likely to continue climbing, there will likely be a more noticeable hit on gasoline demand once the holidays are over. However, U.S. retail gasoline demand rose last week, likely as motorists get out and finish their gift buying ahead of Christmas. Nationally, weekly gasoline demand was up 2.9 percent from the prior week.
| Rural Advocate News | Tuesday December 21, 2021 |
Tuesday Watch List Markets There are no official reports on Tuesday's docket, but traders will still check in on the latest weather forecasts and pause at 8 a.m. CST to see if USDA has an export sales announcement. Markets are typically quiet the week leading up to Christmas, but can also be vulnerable to unexpected moves, especially with outside markets nervous about the latest spread of coronavirus. Weather Two separate systems are bringing showers to the country on Tuesday. One is moving across the north with snow showers from the eastern Dakotas through Michigan. Another is moving across the Florida Peninsula with scattered showers in the Southeast. Other areas will remain dry; another day of poor conditions for winter wheat in the southwestern Plains.
| Rural Advocate News | Monday December 20, 2021 |
Grassley: Investigation Needed in the Fertilizer Industry Iowa Senator Chuck Grassley sent a letter to Attorney General Garland calling for the Department of Justice to investigate the fertilizer industry. American farmers are raising concerns about possible anti-competitive activity and market manipulation. Grassley says fertilizer is an essential input for farmers across the country, and without it, crop yields and agricultural productivity would get significantly smaller. “I have heard numerous concerns from Iowans and member organizations who are concerned that fertilizer companies are colluding and unfairly raising the price of their products,” Grassley writes in the letter. The industry has seen dramatic growth in prices: nitrogen fertilizer has doubled in price, anhydrous rose by 131 percent, urea by 110 percent, and potash up 120 percent. “The DOJ should investigate the fertilizer market so farmers across the country can get assurances that there are no violations of U.S. antitrust law in the fertilizer industry,” Grassley says. “Fertilizer tariffs are placing a huge financial burden on farmers.” *********************************************************************************** NCGA Wants Fertilizer Tariffs Ended The National Corn Growers Association says one of the top fertilizer companies has erected an insurmountable barrier to keep top competitors out of the U.S. market. An NCGA letter says the barrier is hurting America’s farmers. NCGA and its state affiliates signed a letter sent to Mosaic, one of the nation’s top fertilizer producers. The letter takes Mosaic to task for the tariffs that were imposed in March by the International Trade Commission at the fertilizer company’s request. “Mosaic’s posture to date has been a masterpiece of irresponsible corporate social responsibility,” the letter adds. “Only 15 percent of phosphorous imports now come into the U.S. without tariffs.” The organization also points out that experts say using the Commerce Department and the Trade Commission to manipulate the supply curve does indeed dictate the price to farmers. The Corn Growers are asking Mosaic to reverse course and allow critical supply back into the U.S. *********************************************************************************** Transportation, Ag Departments Want Better Shipping Service for Agriculture Transportation Secretary Pete Buttigieg (BUD-ah-judge) and Ag Secretary Tom Vilsack are asking the world’s leading ocean carriers to get rid of disruptions to agricultural shippers of American exports. They want relief for the supply chain disruptions created by COVID-19 by restoring reciprocal treatment of imports and exports and improving service. Ocean carriers have made fewer containers available for U.S. agricultural commodities. They’ve also repeatedly changed return dates and charged unfair fees as the ocean carriers short-circuited the normal pathways and rushed containers back to be exported empty. The poor service and refusal to serve customers is exemplified by many ocean carriers suspending service to the Port of Oakland. DOT and USDA are calling on carriers to utilize available terminal capacity more fully on the West Coast. They note that West Coast ports have excess capacity to alleviate supply-chain congestion. Restoring service to Oakland would ease congestion at the Ports of Los Angeles and Long Beach. *********************************************************************************** Australia and Britain Sign Free Trade Deal Australia and Britain signed a free trade agreement late last week that will eliminate almost all tariffs between the two countries. The Associated Press says the deal gets rid of 99 percent of all taxes on exports. That will save Australia approximately $10 billion on exports like lamb, beef, sugar, and dairy. Britain is expected to save around $144 million a year on items such as cars, whisky, and cosmetics. Australia’s agricultural exporters also will get better access to the British market and $29 million a year of tariffs will get removed on Australian wines entering the United Kingdom. In announcing the deal, which takes effect in 2022, the nations say it will grow investments and help with the recovery from COVID-19. In making the announcement, the countries said, “Our economies will be able to operate seamlessly again. The experiences and opportunities that Australians and young Brits will be able to get through this initiative are fantastic.” *********************************************************************************** Senators Ask Administration to Take India Before WTO More than a dozen senators sent a letter to Ag Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai regarding India. They’d like the administration to pursue a World Trade Organization case against India’s domestic support for rice and wheat production. The U.S. has previously highlighted India’s non-compliance through counter-notifications at the WTO Committee on Agriculture. “American rice and wheat producers are operating at a clear disadvantage compared to their competitors, primarily from India, where the government is subsidizing more than half the value of production for rice and wheat,” says the letter to the administration. WTO regulations only allow just ten percent. “Wheat and rice farmers rely on open markets and fair trade to facilitate trade, which plays a vital role in supporting our growers and jobs in rural America,” says North American Wheat Growers Association CEO Chandler Goule. “It’s important that India lives by their international WTO commitments.” *********************************************************************************** USDA to Provide Aid to Help School Meals The USDA will provide up to $1.5 billion to help school meal programs get through the supply chain crunch. USDA Secretary Tom Vilsack says procuring large amounts of food is more difficult because of shipment delays, a lack of particular products, the high cost of food, as well as labor shortages brought on by COVID-19. USDA is accessing the Commodity Credit Corporation for funding, providing $1 billion for schools to purchase food for their meal programs. Another $500 million will be distributed for the purchase of local foods to be distributed to schools. “This will result in a five percent increase in what school districts normally have available,” Vilsack says. The CCC was established in the 1930s, and it’s generally been tapped to provide subsidies for farmers, and it gives USDA broad authority to make direct payments to growers when prices are low. The number of American’s without enough food to eat remains higher than before COVID-19.
| Rural Advocate News | Monday December 20, 2021 |
Monday Watch List Markets On Monday, December 20, five days before Christmas, a report on U.S. leading indicators in November is set for 9 a.m. CST, followed by weekly grain inspections at 10 a.m. Traders will monitor the latest weekly weather forecasts and watch for any export sales activity. Weather There is a system in the Gulf of Mexico and a weak system in the Pacific Northwest, each with some showers on Monday. But most of the country is looking at fairly calm and quiet conditions to start the week. Drought continues to build in the southwestern Plains and will be a detriment to winter wheat.
| Rural Advocate News | Friday December 17, 2021 |
NBB Studies Benefits of the Biodiesel Tax Incentive The National Biodiesel Board welcomed a new report titled “The Economic Benefits of the Biodiesel Blender’s Credit.” The report calculates annual economic benefits of $15 billion and environmental benefits of $4.3 billion from U.S. biodiesel production. The report says letting the current tax credit expire at the end of 2022 would harm the U.S. economy and the environment. It shows that the environmental benefits alone from each gallon of biodiesel that replaces petrodiesel exceed two dollars a gallon, or more than double the cost of the credit. Every 100 million gallons supports 3,200 jobs and $780 million in economic opportunity. The new report says eliminating the tax credit would cost up to 3,000 jobs in the biodiesel and renewable diesel industry, as well as another 7-to-9,000 jobs in the supply chain. Biodiesel use as recently as 2019 reduced greenhouse gas emissions by 18 million metric tons. The report says ending the credit would devastate the industry. *********************************************************************************** China Will Increase Pork Import Tariffs in 2022 The Chinese finance ministry says it will raise the import duties on most pork products in 2022. Reuters reports that the move comes after China rapidly expanded its domestic production and has less of a need for imports in the near future. The ministry will raise its tariff for most favored nations from the current eight percent to 12 percent on January 1. China had lowered its tariffs on frozen pork during 2020 as the country faced exploding domestic pork prices in the aftermath of the African Swine Fever outbreak. As a result, imports expanded to record highs and remained there through the first half of this year, even as the hog herd gradually recovered, and prices dropped below the cost of production in the third quarter. Most U.S. pork shipments to China face a 25 percent retaliatory tariff imposed during a trade war between the two countries, in addition to the most favored nation’s tariff. *********************************************************************************** Lawsuit Challenges Pesticide-Coated Seeds Two environmental groups continued a five-year fight by suing the EPA to force it to regulate pesticide-coated seeds in the name of protecting bees and other pollinators. Seeds coated with neonicotinoid insecticides are used on 80 percent of corn acres and 40 percent of soybean acres. The EPA decided almost ten years ago that the seeds would not be regulated as pesticides as long as the coatings are registered, and the effect of the pesticides doesn’t extend beyond the seeds. In 2017, the Center for Food Safety petitioned the EPA to regulate coated seeds. However, the agency hasn’t taken any action on the petition since the public comment period ended in 2018. The lawsuit was filed in the U.S. District Court of San Francisco, and it requests the court to force the EPA to act on the petition within a 90-day window. CFS says pollinators are suffering grave harm while EPA fiddles. *********************************************************************************** NCBA Stewardship Award Program Seeks Nominees The National Cattlemen’s Beef Association is looking for applications for its 2022 Environmental Stewardship Award. The program, established in 1991, annually recognizes the outstanding stewardship practices and conservation achievements of cattle producers across the nation. A common trait among all program winners is the desire to leave the land in better condition for future generations and inspire the next generation of land stewards. The award goes to producers who are actively working to protect and improve the environment because environmental stewardship and good business go hand-in-hand. Any individual, group, or organization is eligible to nominate one person or business raising or feeding cattle. Along with the application, one nomination letter and three letters of recommendation highlighting the nominee’s leadership in conservation are required for entry. Applicants do not have to be members of the NCBA. Applications are due by March 11, 2022. Seven regional winners will get recognized at the 2023 Cattle Industry Convention. *********************************************************************************** WTO Rules Against India Sugar Subsidies The World Trade Organization ruled India is violating its WTO obligations with its sugar subsidies. A WTO panel initiated by Australia, Brazil, and Guatemala investigated India’s large sugar subsidies and found it not compatible with the country’s WTO commitments. The Hagstrom Report says an analysis done by the American Sugar Alliance notes that India is one of the largest sugar producers in the world. India produces over 30 million tons of milled sugar in most years with the support of government production subsidies and also uses export subsidies to place six to seven million metric tons of sugar on the world market. The ASA, which represents U.S. cane and beet producers, says the WTO found that India’s provision of domestic support to its sugarcane producers vastly exceeded the level permitted under WTO terms. “India has not been playing by the rules for years to the detriment of other producers,” says Rob Johansson, Director of Economics and Policy with ASA. *********************************************************************************** Pathway Now Open for Canola as Advanced Biofuels The Environmental Protection Agency announced its regulatory agenda for this year, which includes designating renewable diesel fuels derived from canola oil as “advanced biofuels” under the RFS. “The NFU has long advocated for increased use of biofuels due to their tremendous benefits for the environment while providing much-needed market alternatives and economic stability to America’s farming and rural communities,” says Rob Larew, National Farmers Union President. In a recent letter to the USDA, the NFU calls for the administration to support increased growth of biofuel production, which will support increasing investments in rural communities and mitigate the effects of climate change. He says regulatory certainty is needed to expand production, remove any distortions in the market for canola oil, and make additional investments in processing. ”The EPA announcement is encouraging, and we urge prompt action to provide much-needed market alternatives and economic stability in rural America,” Larew adds. The rule-making will take place in January 2022.
| Rural Advocate News | Friday December 17, 2021 |
Friday Watch List Markets There are no official reports on the docket for Friday, the week before Christmas eve, but surely the market will find some mischief to get into. Traders will keep an eye on the latest weather forecasts, outside markets and any news of an export sale. Weather A frontal boundary left over from a strong system on Wednesday will continue to be active from the southeastern Plains through the Ohio Valley on Friday. Scattered rain showers will soak some areas that are trying to recover from last week's severe weather. Dryness and drought continue to build in the southwestern Plains, which is unfavorable for winter wheat, a theme for the winter.
| Rural Advocate News | Thursday December 16, 2021 |
USDA to Conduct Study About Agricultural Producers The Department of Agriculture’s National Agricultural Statistics Service is conducting the 2021 Farm Producer Study. The study seeks to improve knowledge and understanding of agricultural producers and help USDA improve services to them. A brief questionnaire will mail this month to approximately 75,000 U.S. agricultural producers across the country. Taking no more than ten minutes to complete, the questionnaire asks participants for demographic and basic farm information. Census and Survey Division Director Barbara Rater says, “The results of the study may lead to more robust demographic data products.” NASS conducts studies like this to determine what questions to incorporate in future censuses and surveys. This study includes questions about race, ethnicity, gender, and disability status. By responding, farmers help paint a more complete picture of who they are and ensure agriculture in America is reflected as accurately as possible. Producers can respond securely online at agcounts.usda.gov or by mail. The deadline for response is January 18, 2022. *********************************************************************************** Report: Climate Change Contributed to Some of 2020’s Worst Weather Scientists say human-caused climate change make extreme weather events more likely, according to new research published Wednesday in the Bulletin of the American Meteorological Society. The 10th edition of the report, Explaining Extreme Events in 2020 from a Climate Perspective, presents 18 new peer-reviewed analyses of extreme weather across the world during 2020. A National Oceanic and Atmospheric Administration study that examined the U.S. Southwest drought using several different model simulations found climate change may have increased the likelihood that the monsoon-season rains would fail as they did in 2020, reigniting a multiyear drought. One trend emerging in the past several years is several studies that find climate change is reducing the risk of certain types of extreme events, typically cold outbreaks or heavy precipitation. Stephanie Herring, a NOAA climate scientist, says, “This report reinforces the scientific consensus that human influence has created a new climate — one that is impacting extreme events today.” *********************************************************************************** Iowa Farmland Values up 29% After several years of modest gains and losses, the average value of an acre of Iowa farmland skyrocketed 29 percent in 2021. The nominal value of an acre of farmland is now higher than at any point since Iowa State University began surveying values in 1941, and is 12 percent higher than the previous peak in 2013. However, the current value in inflation-adjusted terms is still lower than that for 2012 and 2013. The last time farmland values increased more than 25 percent was in 2011, when values rose 32.5 percent. An Iowa State University researcher says, “The increase this year is in part due to much stronger commodity prices thanks to higher exports, stronger than expected crop yields, and strong ad hoc COVID-19 related government payments.” The survey found that the average statewide value of an acre of farmland is $9,751, an increase of 29 percent, or $2,193, since 2020. *********************************************************************************** Perdue Farms Sends Donation, Meals to Kentucky, Ag Relief Programs Open Perdue Farms is delivering $150,000 and 160,000 servings of chicken products to Kentucky residents impacted by the weekend tornado outbreak. The funds are going to the United Way of Kentucky Tornado Relief Fund and the meals are going to Feeding America, Kentucky's Heartland. Perdue's response is made possible through the company's "Delivering Hope To Our Neighbors" initiative focused in part on disaster relief, and improving quality of life and building stronger communities. Kevin Middletown, president of United Way of Kentucky, says, "This will mean so much to our neighbors who lost everything over the weekend.” Meanwhile, the Kentucky Farm Bureau has launched its KFB for Kentucky Relief Fund to aid the families and communities affected by the recent tornado outbreak. And the Kentucky Department of Agriculture has a resource webpage for impacted farmers. The page includes links to donation funds as well. You can find the resource page at kyagr.com/tornado/. *********************************************************************************** EPA Region 7 Announces Opportunity to Apply for Farmer to Farmer Grant Funding The Environmental Protection Agency this week announced the availability of $12 million in funding to support historically underserved farmers within the Gulf of Mexico watershed. The funds are from the Farmer to Farmer grant program and were announced by EPA Region 7, which includes waters in the Gulf of Mexico watershed. Selected projects will work to increase collaboration among farming communities, while improving water quality, habitat, climate resilience, and environmental education through the demonstration of innovative practices on working lands. EPA plans to award four cooperative agreements, with up to $3 million of funding each. It is expected that grant awards may be issued for up to a five-year project period beginning May 2022. Successful applicants will be responsible for administering a competitive subaward grant program to directly collaborate with underserved farmers on projects in the Gulf of Mexico watershed. The request for applications period will end on February 4, 2022. View the funding opportunity on grants.gov. *********************************************************************************** USRSB Joins Trust In Beef The U.S. Roundtable for Sustainable Beef joins the Trust In Beef program as a founding partner and technical advisor. Trust In Beef is a new effort to empower beef producers to accelerate the adoption of their sustainability journey and provide consumers with real-life proof of the continuously improving environmental performance of beef. The program is led by Farm Journal‘s social purpose division, Trust In Food, and its industry leading beef brand, Drovers. Debbie Lyons-Blythe, chair-elect of the U.S. Roundtable for Sustainable Beef, says, “Our members are committed to continuous improvement, which makes this partnership a great fit.” She says the Roundtable has paved the way to ranch-level sustainability progress with their science-based tools and frameworks. Trust In Beef will use their resources to connect beef producers with trusted guidance. Trust In Beef launched in Fall 2021 and supports 200,000 beef producers in accelerating continuous improvement in environmental performance, and providing that message to consumers.
| Rural Advocate News | Thursday December 16, 2021 |
Thursday Watch List Markets On Thursday, USDA's weekly report of export sales is due out at 7:30 a.m. CST, the same time as November housing starts, weekly U.S. jobless claims and an update of the U.S. Drought Monitor. A report on November U.S. industrial production is due out at 8:15 a.m., followed by natural gas storage at 9:30 a.m. Traders will pause at 8 a.m. to see if USDA will have this week's first export sale announcement. Weather A strong system that moved through the Plains and Midwest on Wednesday has moved into Ontario, Canada. There are still some effects from the storm including some stronger winds across the northern Midwest, but those will be waning through the day. The cold front to the system is stalling from Texas into the Ohio Valley, where showers will be more active. Much colder temperatures are building in behind the front, a stark contrast from record highs on Wednesday.
| Rural Advocate News | Wednesday December 15, 2021 |
Bill to Block Retroactive Changes to RVOs Introduced Senate Republican Chuck Grassley of Iowa joined Senate Democrat Amy Klobuchar of Minnesota to introduce a bill Tuesday that they say will provide certainty to biofuel producers. The legislation would prohibit the Environmental Protection Agency from reducing the minimum applicable volume of biofuels into transportation fuel once the renewable volume obligations levels are finalized for any given year. That means, the lawmakers say, the legislation would prevent the EPA from retroactively reducing 2020 or future finalized RVO levels. Grassley says, “It is critical that we establish new safeguards that uphold the RFS and ensure all administrations remain committed to following the law.” The bill is cosponsored by Senate Republican Joni Ernst of Iowa and Democrat Tammy Duckworth of Illinois. Companion legislation was introduced in the House of Representatives by Republican Representative Ashley Hinson of Iowa and Rodney Davis of Illinois, along with House Democrats Angie Craig of Minnesota and Ron Kind of Wisconsin. *********************************************************************************** Report: U.S. Trade Falling Behind Global Competitors The Corn Refiners Association Tuesday released a new report revealing the United States is behind its competitors in reducing global trade barriers. The report, which tracked trade agreements since 2010, shows several nations have outpaced the U.S. in the creation of new bilateral and multilateral trade arrangements, including China, Japan, the European Union, and Canada. At the same time, U.S. trade partners are pressing forward with new trade agreements without the U.S., risking diminished American economic competitiveness and investment opportunities. Corn Refiners Association President and CEO John Bode says, “We must act swiftly on these issues to reaffirm American leadership and maintain our status as a leading voice in global trade regulations and standards.” While the U.S. has completed four trade agreements since 2010, including the modernization of an existing agreement, China has entered into ten new agreements, Japan has entered into seven, the EU has entered into eight, and Canada has entered into eight. *********************************************************************************** Coalition: Ag Labor Must be Exempt from Travel Restrictions A coalition of more than 60 agriculture groups led by the American Farm Bureau Federation requests agricultural workers be exempted from travel restrictions from South Africa. In a letter to the Biden administration, the coalition says, “While protecting our nation from new variants of COVID-19 is critically important, it is in our national interest to ensure production of food, fuel and fiber.” Specifically, the groups ask Secretary of State Antony Blinken and the Homeland Security Department to give National Interest Exceptions to H-2A workers coming to the United States as outlined in the proclamations as an exception to the travel restrictions. The agriculture groups say almost 7,000 guestworkers originate from South Africa, and the majority of them arrive in the U.S. in February, March and April. Many of these H-2A workers have a unique skillset, and American farmers are counting on their timely arrival as they make plans for their upcoming growing seasons. *********************************************************************************** Newhouse Introduces Legislation to Increase Food Donations U.S. Representative Dan Newhouse this week introduced legislation to expand food donation efforts across the country. Fellow Republican Jackie Walorski of Indiana, along with Democrats Jim McGovern of Massachusetts and Chellie Pingree of Maine, joined Newhouse of Washington state to introduce the bill. The bipartisan Food Donation Improvement Act would encourage food donation efforts by extending liability protections to food donors when food is either given directly to a person in need or when a recipient pays a deeply reduced cost. Expanding the protections would allow retail grocers, wholesalers, agricultural producers, restaurants, caterers, school food authorities, and higher education institutions to increase the quantity and efficiency of their food donation efforts. The bill would also clarify labeling standards that food products must meet to be eligible for liability protections. Newhouse says the legislation “will enact logical reforms that will provide clarity and protections to farmers, retailers, and non-profits seeking in good faith to assist the hungry.” *********************************************************************************** Deere Expands Footprint with Chicago Office Deere & Company this week announced the expansion of its U.S. footprint with the opening of a new Chicago office. The company plans to add 150 information technology jobs at the office over the next two years, with the goal of hiring a total of 300 positions to support IT and additional roles. The facility will target IT capabilities in eCommerce, cloud, data and analytics, and a variety of innovation-related technical skills. Illinois Governor JB Pritzker says, "John Deere's new technology center in Chicago is just one example of the innovation and investment Illinois is inspiring with our top-tier talent and world-class infrastructure." The new space, located in the fast-growing Fulton Market neighborhood, will allow Deere to recruit from the deep bench of diverse talent in Chicago and provide them with the flexibility of in-person collaboration. The new office is expected to open in late summer or early fall of 2022. *********************************************************************************** Applications Sought for Renewed Effort to Assist Farmers American Farmland Trust is accepting applications to help farmers nationwide to improve farm viability, access, transfer or to permanently protect farmland or adopt regenerative agricultural practices. AFT’s Brighter Future Fund provides grants of up to $5,000 per project. A project may involve one or more individual farmers or farm families, and only one grant can be awarded per farm family. David Haight, AFT Vice President of Programs, says, "This year, the program will focus exclusively on providing resources to producers who have faced systemic barriers in our agricultural system." The Brighter Future Fund launched in 2020 to help farmers launch, grow and sustain farms in the face of forces impacting the food and agricultural system, including the COVID-19 pandemic, changing markets, severe weather and climate change. Applications will be reviewed and awarded in the order the applications are received based on eligibility. To apply, farmers should submit a completed electronic Brighter Future Fund Application to AFT at www.farmland.org
| Rural Advocate News | Wednesday December 15, 2021 |
Wednesday Watch List Markets Wednesday's reports start with U.S. retail sales in November at 7:30 a.m. CST, followed by the Energy Department's weekly inventory report at 9:30 a.m. The National Oilseeds Processors Association will give its monthly soybean crush report later Wednesday morning. Many will be watching as the Federal Reserve makes its post-meeting announcement at 1 p.m., followed by USDA's Livestock, Dairy and Poultry outlook at 2 p.m. Weather A potent storm system will kick up incredibly strong wind gusts across the Plains and Upper Midwest Wednesday, especially this afternoon and evening. Wind gusts may exceed 70 mph for large areas of the Central Plains into Iowa and northwest Missouri with gusts approaching or exceeding 60 mph elsewhere in the region. There should also be enough ingredients to produce severe weather from eastern Nebraska into the Upper Midwest late this afternoon and evening. Strong winds and a couple of tornadoes are likely. Some snow will develop on the backside of the system, but only a couple of inches is expected as the system quickly moves out of the region Wednesday night. Temperatures crashing behind the system will produce flash-freezes that will create hazards for standing water from rain and melted snow.
| Rural Advocate News | Tuesday December 14, 2021 |
Farmers Struggle with Skyrocketing Fertilizer Prices Fertilizer prices continue to skyrocket, as much as 300 percent in some areas, as farmers grapple with increased costs as they prepare for the 2022 growing season. The American Farm Bureau Federation’s latest Market Intel examines the short- and long-term factors impacting fertilizer supply and demand. Farm Bureau economists found several elements are contributing to record-high prices. Those include Increased prices for raw nutrients, increased demand, higher energy costs, supply chain issues and trade duties. Farm Bureau President Zippy Duvall says, "We urge the Biden administration to look for ways to bring fertilizer prices down, which include resolving supply chain disruptions and removing import duties." The Market Intel found that compared to September 2020 prices, ammonia has increased over 210 percent, liquid nitrogen has increased over 159 percent, urea is up 155 percent, MAP has increased 125 percent, while DAP is up over 100 percent, and potash has risen above 134 percent. *********************************************************************************** USDA Provides Additional Pandemic Assistance to Hog Producers The Department of Agriculture Monday announced a new program to assist hog producers who faced reduced market prices due to the COVID-19 pandemic. The Spot Market Hog Pandemic Program is part of USDA’s Pandemic Assistance for Producers initiative and addresses gaps in previous assistance for hog producers. The program assists hog producers who sold hogs through a negotiated sale from April 16, 2020, through September 1, 2020. USDA is offering the program as packer production was reduced by the COVID-19 pandemic due to employee illness and supply chain issues, resulting in fewer negotiated hogs being procured and subsequent lower market prices. Payments will be calculated by multiplying the number of head of eligible hogs, not to exceed 10,000 head, by the payment rate of $54 per head. FSA will issue payments to eligible hog producers as applications are received and approved. Eligible hog producers can apply starting December 15, 2021, by contacting their local USDA Service Center. *********************************************************************************** Report: E15 Ready to Fuel 98 Percent of U.S. Miles Traveled A new report from Growth Energy Monday showcases nearly universal compatibility with fuel blended with 15 percent ethanol, or E15, among vehicles on the road today. Growth Energy CEO Emily Skor says, “This report confirms that better access to lower-cost E15 could save motorists money on 98 percent of all vehicle miles traveled in the United States.” E15 is approved by the EPA for use in all light-duty vehicles model year 2001 and newer. Based on the current vehicle fleet and sales over the past year, the new report shows that E15 is approved for 96 percent of light-duty cars and trucks on the road, nearly 246 million vehicles. The data combines with other research illustrating that nationwide E15 could slash emissions by 17.62 million tons per year. The report was prepared by Air Improvement Resource, Inc., a leading engineering and consulting firm specializing in inventory modeling and analysis, at the request of Growth Energy. *********************************************************************************** AEM Releases November 2021 Equipment Sales Numbers Sales growth in both tractors and combines continues in the U.S., while a slowdown in harvesters in Canada brings overall unit sales slightly below 2020 north of the border. The Association of Equipment Manufacturers reports U.S. total farm tractor sales climbed 8.7 percent in November compared to 2020, while combine sales saw a gain of 37.8 percent, the fourth month in a row of growth near or above 20 percent for harvesters. For Canada, November monthly were a mixed bag, with tractors climbing 1.3 percent in aggregate, while harvesters fell 56.8 percent, bringing combined tractor and combine sales down 0.7 percent, or 18 total units. Still, both tractors and combines remain above 20 percent growth year-to-date in Canada, with tractors up 20.5 percent, and combines up 28.1 percent. AEM’s Curt Blades adds, “While supply chain issues are still causing some bumps, our members continue to do all they can to deliver the parts and products to the market.” *********************************************************************************** Restaurant Menu Price Inflation Reaches 39-year High Restaurant menu price inflation hit a 39-year high last month as high costs for food and labor continue. Restaurant Business, a commercial foodservice industry publication, reports limited-service restaurant prices rose 7.9 percent, while full-service increased six percent. The data stems from the U.S. Labor Department’s Consumer Price Index released last week. Several factors are contributing to the inflation, but a dramatic spike in wages is the top issue. Wages are up 14 percent this year, nearly three times the overall rate of inflation, according to Restaurant Business sister company Technomic. Labor problems are causing major disruptions in the supply chain, making it difficult for meat processors to get enough staff to produce chicken or beef and leaving distributors without enough drivers to get goods to restaurants. These levels of menu price inflation typically push consumers away from restaurants. But grocery prices are not much better and have outpaced restaurant inflation for each of the past three months. *********************************************************************************** USDA Study: Black Beans Help Fix Insulin Resistance Adding cooked black beans to a high-fat diet improved sensitivity to insulin and other measures often related to diabetes, according to a USDA Agricultural Research Service study. As little as the mouse-sized equivalent of a single serving a day of black beans—about a half cup for a human—lowered insulin resistance 87 percent. A USDA researcher says, “This research suggests that eating even a small amount of black beans can have multiple health benefits.” Mice on the high-fat plus black beans diet also decreased LDL cholesterol, the so-called bad cholesterol, 28 percent and triglyceride levels 37 percent compared to mice eating a high-fat diet without black beans. Other diabetes-related biomarkers were all significantly better in the mice on the high-fat plus black beans diet. Black beans are generally low in fat and high in fiber and protein. They are popular in Latin American, Mexican and Caribbean cuisines as well as in Cajun and Creole cooking.
| Rural Advocate News | Tuesday December 14, 2021 |
Tuesday Watch List Markets Tuesday, the Labor Department's producer price index for November is set for release at 7:30 a.m. CST. Traders will keep an eye on the latest weather forecasts and pause at 8 a.m. CST for a possible export sale announcement. December grain futures contracts expire early. Weather A storm system continues to build across the West with heavy precipitation. Most areas east of the Rockies will be dry and warm with temperatures well above normal. The combination is bad for winter wheat in the southwestern Plains where drought continues to grow
| Rural Advocate News | Monday December 13, 2021 |
Consumer Price Index Continues Increase The Consumer Price Index increased 0.8 percent in November after rising 0.9 percent in October. The U.S. Bureau of Labor Statistics released the data Friday. Over the last 12 months, the all items index increased 6.8 percent before seasonal adjustment. The food index increased 0.7 percent in November after rising 0.9 percent in both September and October. The food at home index increased 0.8 percent in November as all six major grocery store food group indexes rose. The rise represents the third consecutive month that all six increased. The food at home index rose 6.4 percent over the past 12 months, the largest 12-month increase since December 2008. The food away from home index rose 0.6 percent in November, following a 0.8-percent increase the prior month. The index for limited-service meals continued to rise sharply, increasing 1.0 percent over the month, while the index for full-service meals rose 0.4 percent in November. *********************************************************************************** CoBank Releases 2022 Year Ahead Economic Report The U.S. economy is poised to slow in 2022 relative to 2021, but economic growth will continue at an above-average pace. CoBank last week released its 2022 year ahead report, examining several key factors that impact agriculture and market sectors that serve rural communities. CoBank suggests the U.S. farm economy will continue to struggle with the ongoing supply chain dysfunction and cost inflation issues that emerged in the summer of 2021. Historically strong prices will be more than offset by increases in cost structure for nearly all crop production, including row crops, fruits and vegetables, and hay. CoBank economists do not anticipate any significant pullback in farm-level costs until the fall of 2022, at the earliest. The expected decline in direct government payments in 2022 will further squeeze farm income statements. The single biggest wildcard for U.S. agriculture is export sales to China, currently the largest export market for U.S. farm products. *********************************************************************************** USDA Withdraws Proposed Horse Protection Rule USDA's Animal and Plant Health Inspection Service Friday announced the withdrawal of a 2016 proposed rule that would have amended the Horse Protection Act regulations. APHIS is making the development of a new and improved proposal a top regulatory priority. The action allows the agency to evaluate and consider more recent findings and research and incorporate the information into a new proposed rule. A 2021 National Academies of Sciences study examined the inspection methods used for identifying soreness in walking horses, new and emerging approaches for detecting pain, and use of the scar rule in determining compliance with the Horse Protection Act. The report also made several science-based recommendations that APHIS will consider. APHIS determined that the proposed rule does not sufficiently address the report's findings and believes that the 2016 proposed rule's underlying data should be updated. Following withdrawal of the 2016 proposed rule, APHIS intends to issue a new proposed rule quickly. *********************************************************************************** FSIS Seeking Proposals to Control Salmonella in Poultry Processing USDA's Food Safety and Inspection service seeks proposals from poultry processors for pilot projects that will test different control strategies for Salmonella contamination. FSIS, in a constituent update Friday, said participating processors will experiment with new or existing pathogen control and measurement strategies and share data collected during the pilots with FSIS. The data will be analyzed to determine whether it supports changes to FSIS existing Salmonella control strategies. The agency announced in October it would be mobilizing a stronger and more comprehensive effort to reduce Salmonella illnesses associated with poultry products. FSIS will consider proposals from all active poultry establishments, or parent corporations, that produce raw products subject to FSIS Salmonella performance standards. Key partners such as breeders, live animal producers, and allied businesses are encouraged to assist in the projects. Proposals will consider new or existing control and measurement strategies for controlling Salmonella before and after harvesting of live birds. *********************************************************************************** Long-Term Productivity Growth Varies Across Countries Total factor productivity growth for agriculture varies across countries, according to fresh data from USDA’s Economic Research Service. Total factor productivity growth reflects the rate of technological and efficiency improvements in agriculture. The data measures the amount of agricultural output produced from the combined set of land, labor, capital, and material resources employed in the production process. Strengthening the capacity of national agricultural research and extension systems to develop and deliver new agricultural technologies to farmers has been a critical factor in raising agricultural productivity. Information from the International Agricultural Productivity data product and related ERS research shows that Brazil and India's growth can be attributed to long-term investments in agricultural research. China's growth can be attributed to investments in research and institutional and economic reforms. In contrast, Russia's low rate of agricultural growth is attributed to inefficiencies under a planned economy until 1991, followed by economic disruptions that accompanied its transition to a market economy. *********************************************************************************** ASA Elects 2022 Executive Committee During its annual meeting in St. Louis last week, the American Soybean Association elected the leaders who will steer the organization. Brad Doyle of Arkansas will serve as 2022 ASA president. Doyle previously served as ASA vice president, secretary, and an at-large executive committee member. He has been on the ASA board of directors since 2017. Immediate past president Kevin Scott of South Dakota moves to the role of ASA chairman. Former chairman Bill Gordon of Minnesota rotates off the nine-member executive committee and retires from the board. The ASA board elected Daryl Cates of Illinois as ASA vice president, a role that puts him in line to serve as the association’s president in 2023. In addition, the board elected Caleb Ragland of Kentucky as ASA secretary and North Dakota’s Josh Gackle as treasurer. At-large members of the executive committee include Stan Born of Illinois, Minnesota’s George Goblish, Ronnie Russell of Missouri, and Scott Metzger from Ohio.
| Rural Advocate News | Monday December 13, 2021 |
Monday Watch List Markets Following Thursday's WASDE report, USDA's Economic Research Service will issue updates to their crop outlooks Monday. The updates are not market-moving events but provide additional supporting information. Otherwise, after USDA's weekly grain inspections report at 10 a.m. CST, there are no significant reports Monday. The latest weather forecasts and any export sales news will get their usual attention. Weather A strong storm system is building in the West early this week that will bring widespread heavy precipitation to the region, helping to reduce drought. Drier and warmer weather eastward should help to melt snow across the northern tier, and aid in recovery efforts where severe weather and devastating tornadoes went through Friday night.
| Rural Advocate News | Friday December 10, 2021 |
House Passes Bills Promoting Livestock Market Transparency Groups like the National Cattlemen’s Beef Association are pleased the House of Representatives passed two bills that provide producers with greater transparency in the cattle markets. The House voted 418-9 to advance legislation that would extend the authorization for Livestock Mandatory Reporting through September 30, 2022. The authorization for LMR is the most important tool cattle producers have for understanding transactions and trends in the cattle markets. By a 411-13 vote, the House also passed the Cattle Contract Library Act. “LMR is absolutely essential to fair, competitive, and transparent cattle markets,” says NCBA President Jerry Bohn. “We’re also grateful that producers will have access to vital market data through the cattle contract library.” NCBA also says the creation of a cattle contract library and reauthorization of LMR are both widely supported across the cattle and beef industry. The organization appreciates the heavy engagement of lawmakers from both sides of the aisle on the transparency issue. *********************************************************************************** House Takes Action on Supply Chain Disruptions The House passed the Ocean Shipping Reform Act to try and solve some of the challenges in the U.S. supply chain. In recent months, ocean liners from China and other countries have been returning to their home ports empty after delivering to the U.S., making it hard for U.S. agriculture to export commodities. Among the many functions of the legislation, it would prohibit ocean carriers from unreasonably declining opportunities, as determined by the Federal Maritime Commission in new required federal rulemaking. The U.S. Dairy Export Council, the National Milk Producers Federation, and other ag groups supported the bill. “This legislation would help alleviate delays and disruptions at U.S. ports that have cost the U.S. dairy industry well over $1 billion this year,” says the dairy groups. “Since late 2020, America’s dairy exporters have contended with challenges in securing shipping containers, record-high fees, and shipping access volatility, most of which is driven by foreign-owned carriers.” *********************************************************************************** Corn, Soybean Numbers “Neutral” in December WASDE USDA’s December World Ag Supply and Demand Estimates report was called “neutral” for corn and soybeans and bearish for wheat. This month’s 2021-2022 U.S. corn supply and use outlook is unchanged from November. USDA kept corn for ethanol use at 5.25 billion bushels despite forecasts of strong demand and higher production. Corn ending stocks are projected at 1.49 billion bushels, and the season-average farm price is still $5.45 a bushel. Soybean supply and use projections also remain unchanged. Although soybean crush is unchanged, soybean oil production is raised because of a higher extraction rate. The season-average U.S. soybean price is unchanged at $12.10 per bushel. Lower exports caused USDA to push up ending wheat ending stocks to an unexpected 598 million bushels. USDA also dropped wheat imports by five million bushels but left all other supply and demand factors at November levels. The season-average farm price rose 15 cents to $7.05 a bushel. *********************************************************************************** USB Elects New Chair Farmer-leaders of the soybean checkoff elected Ralph Lott of Seneca Falls, New York, as the 2022 Chair during their December meeting in St. Charles, Missouri. “With a productive growing season, favorable soybean prices, and increased demand in 2021 amid supply chain constraints, this is an exciting and pivotal time for U.S. Soy, both domestically and internationally,” Lott says. “I appreciate the support of my fellow board members, and I am eager to work with them to identify initiatives that grow our markets and bring value back to the farm.” The new United Soybean Board Chair also says he’s looking forward to continuing the board’s success of making judicious soy checkoff investments in addressing both immediate and long-term supply and demand opportunities and driving resiliency for U.S. soy farmers. Meagan Kaiser of Missouri was elected as the Vice-Chair. Key USB success from this year includes U.S. soybeans getting used as an active ingredient in more than 1,000 products. *********************************************************************************** Beef Export Value Shatters Records October was a strong month for U.S. red meat exports. USDA data compiled by the U.S. Meat Export Federation shows beef export value continued to soar. October’s pork exports were well below last year’s large total, but year-to-date shipments remained slightly above the record pace of 2020. Beef exports reached 115,700 metric tons in October, while export value climbed 48 percent to $957 million, the second-highest total on record. Only August of this year was higher. January through October exports hit 1.19 million metric tons, up 17 percent from 2021. Beef exports will top $2 billion in three key markets, including South Korea, Japan, and China/Hong Kong. Pork exports totaled 226,200 metric tons in October, while export value dropped 3.5 percent to $618 million. Through the first ten months of the year, pork exports were slightly higher in volume than last year. Exports to Mexico hit a new monthly high in October at 84,000 metric tons. *********************************************************************************** Groups Ask EPA to Fix Summertime E15 Block Six national farm and biofuel organizations want the Environmental Protection Agency to enact regulations that help facilitate year-round sales of E15 nationwide. They’d like regulations that require lower-volatility conventional gasoline blend-stock in the summer. The groups say the move would result in lower tailpipe and evaporative emissions during the summer ozone control season and improve air quality. In a letter to EPA Administrator Michael Regan, the groups say reducing the volatility of gasoline by just one pound per square inch would yield significant environmental benefits. They attached a new study using EPA modeling tools to the letter showing that reducing the vapor pressure of conventional gasoline blend-stock by 1 psi would be beneficial to air quality as carbon monoxide emissions, nitrogen oxides, and other volatile organic compounds would be reduced. If the 1-psi waiver for E10 is eliminated and E10 is replaced with E15, it will also decrease greenhouse gases and particulate emissions.
| Rural Advocate News | Friday December 10, 2021 |
Friday Watch List Markets The Labor Department will release the November consumer price index at 7:30 a.m. CST, a hot topic after October prices were up 6.2% from a year ago. Traders will keep an eye on the latest weather forecasts and pause at 8 a.m. CST for a possible export sale announcement. The University of Michigan's consumer sentiment index for early December follows at 9 a.m. The U.S. Treasury reports on the federal budget for November at 1 p.m. CST. Weather A storm system working out of the Rockies and into the Plains is developing heavy snow across Wyoming to southern Minnesota already. That band will expand throughout the day and extend farther into Wisconsin as the low pressure center moves into the Midwest tonight. Scattered showers and thunderstorms will develop later in the day from the far eastern Plains through the Delta and Midwest, where severe thunderstorms will be possible. Strong winds are already having an impact in the southwestern Plains but should increase across much of the middle of the country today as well.
| Rural Advocate News | Thursday December 9, 2021 |
Critics Say EPA RVO Announcement Includes Unprecedented Revisions Critics of the Environmental Protection Agency’s renewable volume obligations announcement say the proposal sets the precedent of revising previously finalized volumes in the Renewable Fuel Standard. EPA proposes to retroactively reopen and reduce the finalized 2020 renewable volume obligation, slashing the already settled conventional biofuel blending volume for that year from 15 billion gallons to 12.5 billion gallons. Iowa Corn Growers Association President Lance Lillibridge says, “Biden's own EPA is undercutting the benefits of clean-burning ethanol and the livelihoods of corn farmers.” Iowa Senator Chuck Grassley responds, “The administration’s unprecedented plan to retroactively cut blending levels for previous years is a boon for Big Oil,” adding, “What’s to stop the administration from slashing 2022 obligations down the line?” If the proposal is finalized, industry groups expect lengthy litigation against the EPA over the action. And some see the proposal as further proof for the need to pass the Next Generation Fuels Act. *********************************************************************************** $800 Million Available to Provide Economic Relief to Biofuel Producers The Department of Agriculture this week announced its relief program for biofuel producers, in conjunction with the Environmental Protection Agency’s volume announcement. USDA says up to $800 million will support biofuel producers and infrastructure, a long-awaited announcement authorized by the CARES Act. The funding includes $700 million to provide economic relief to biofuel producers and restore renewable fuel markets affected by the pandemic and $100 million for expanding infrastructure for renewable fuels. Agriculture Secretary Tom Vilsack says the program will “pave the way to economic recovery for America’s biofuel producers,” along with stimulating a critical market for U.S. farmers. Through the Biofuel Producer Program, USDA will make direct payments for biofuel producers who faced unexpected market losses due to the pandemic. USDA will announce the official application window for this program within the coming week. The infrastructure program funds grants for biofuels infrastructure, such as blender pumps which ensure biofuels have greater availability in the retail market. *********************************************************************************** USDA Opens 2022 Sign-up for Dairy Margin Coverage The Department of Agriculture Wednesday announced the sign-up period for the Dairy Margin Coverage. USDA also expanded the program to allow dairy producers to better protect their operations through supplemental production. This sign-up period, which runs from December 13, 2021, to February 18, 2022, enables producers to get coverage through the safety-net program for another year as well. The Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but could not enroll the additional production. Now, they will be able to retroactively receive payments for that supplemental production. USDA is also changing the DMC feed cost formula to better reflect the actual cost dairy farmers pay for high-quality alfalfa hay. FSA will calculate payments using 100 percent premium alfalfa hay rather than 50 percent. The amended feed cost formula will make DMC payments more reflective of actual dairy producer expenses. *********************************************************************************** USGC Releases 2021 Corn Harvest Quality Report The U.S. Grains Council released this week the 2021/2022 Corn Harvest Quality Report. The report is based on 610 samples taken from defined areas within 12 of the top corn-producing and exporting states. USCG revealed that revealed this year's U.S. corn crop has a higher average test weight and lower total damage and stress cracks compared with the previous five crops. The 11th edition of the report showed the 2021 crop was planted earlier than average and experienced a mostly warm growing season. Overall, 65 percent of the crop rated as good or excellent condition, nearing record high yields. The average aggregate quality of the representative samples tested was better than the grade factor requirements for U.S. No. 1 grade. Nearly 99 percent of the samples tested below the U.S. Food and Drug Administration action level for aflatoxins. And the 2021/2022 U.S. corn crop is expected to be the second-largest on record and has the highest average yield on record. *********************************************************************************** New Report Finds Unmet Demand for Afterschool Programs A new report finds Just 11 percent of America’s rural children are enrolled in an afterschool program. For every rural child in an afterschool program, four more are waiting to get in. The report, Spiking Demand, Growing Barriers, is based on a household survey conducted by Edge Research for the Afterschool Alliance. It finds a drop in rural children enrolled in afterschool programs from 13 percent, or 1.19 million rural kids, enrolled in 2014 to just 11 percent, or 1.15 million kids, enrolled in 2020. The drop mirrors national trends on afterschool participation as public funding for afterschool programs has not kept up with demand. The new study finds that cost and transportation are significant barriers that prevent many rural parents from enrolling their child in an afterschool program. Afterschool Alliance Executive Director Jodi Grant says, “Increasing access to both afterschool and summer learning programs must be an urgent priority for lawmakers and funders.” *********************************************************************************** USDA, Boehringer Ingelheim, Expand Research Opportunities for Veterinary Students Boehringer Ingelheim and USDA’s Agricultural Research Service are joining forces to offer veterinary students the opportunity to research diseases that could affect livestock and public health. The collaboration expands the Boehringer Ingelheim-led Veterinary Scholars Program, which has provided stipends to more than 3,500 veterinary students in the last 30 years. The expansion will create opportunities for up to 12 students to spend the summer at one of nine USDA sites working with an ARS scientist on a research project in livestock infectious diseases. Boehringer Ingelheim and USDA will cover all costs for the students, including costs associated with traveling to and from their schools to the USDA centers. After spending the summer conducting research and learning from USDA scientists, students will attend and present their work at the 2022 National Veterinary Scholars Symposium, hosted by the University of Minnesota’s College of Veterinary Medicine in St. Paul, Minnesota. More information and the application are available at boehringer-ingelheim.com.
| Rural Advocate News | Thursday December 9, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST, the same time as weekly jobless claims and an update of the U.S. Drought Monitor. Traders will watch for a possible export sales announcement at 8 a.m. and the Energy Department's report on natural gas storage is set for 9:30 a.m. USDA's December WASDE report comes out at 11 a.m. CST, expected to show only small changes, if any. Weather A weak system moving through Canada is producing some showers for the northern Midwest Thursday, but amounts will be fairly light. Another storm moving through the western states is bringing some better showers to drought-afflicted areas. But dryness in the Southern Plains continues to be a concern for winter wheat, especially when you factor in the warm temperatures.
| Rural Advocate News | Wednesday December 8, 2021 |
EPA Announces Long-Awaited RVOs The Environmental Protection Agency announced a package of actions, including setting the Renewable Volume Obligations for 2022, 2021, and 2020. The agency also introduced regulator changes intended to enhance the program’s objectives. For 2022, the EPA is proposing the highest total volumes in history, putting the program on a stable trajectory that provides for significant growth. The proposed volume for 2022 is over 3.5 billion gallons higher than the volume of renewable fuel used in 2020. The proposed volume for advanced biofuels in 2022 is over one billion gallons greater than the volume used in 2020. EPA is also proposing to deny dozes of petitions to exempt small refineries from the obligations under the RFS. “Despite multiple challenging dynamics affecting the RFS program in recent years, EPA remains committed to the growth of biofuels in America to secure a clean zero-carbon energy future,” says EPA Administrator Michael Regan. *********************************************************************************** Farmer Sentiment Weakens on Cost Concerns The Purdue University/CME Group Ag Economy Barometer dropped five points in November to a reading of 116. Producers continue to be pessimistic about both the current and future outlook of the agricultural economy. Farmers are facing sharp increases in their cost of production that coincide with fluctuating crop and livestock prices. Other issues of concern are the prospect of changing environmental and tax policy, the uncertainty brought on by COVID-19, and a host of other issues that are all driving down farmer sentiment. The Farm Capital Investment Index shows 47 percent of respondents listing higher input costs as their biggest concern in the upcoming year. The Farm Financial Performance Index rose two points in November, helped by strong fall crop yields and stronger wheat prices. Producers remain optimistic about farmland values over the next 12 months and the next five years. Over half the farmers surveyed expect cash rental rates to rise in 2022. *********************************************************************************** Groups Unite on Clear Labeling of Cell-Based Protein The Hagstrom Report says it’s rare for the National Cattlemen’s Beef Association, the Center for Food Safety, and the National Chicken Council to be on the same page. However, all three groups are asking the USDA to clearly label meat and poultry products that contain lab-grown animal cells. The USDA’s Food Safety and Inspection Service is working to develop a regulatory structure for lab-grown meat. NCBA says that the term “beef” should only be on products that come from livestock raised by farmers and ranchers. The NCBA also did a study on consumer understanding of lab-grown meat which showed only 13 percent were aware of the products. When asked to provide a definition after hearing several choices, only ten percent of the respondents gave an accurate definition of the products. The CFS says, “Synthetic products comprised of cultured animal cells must be clearly differentiated from slaughtered meat before they’re marketed.” *********************************************************************************** Ag Economic Insights Reviews 2021 Major Trends Ag Economic Insights says 2021 has been one of the best years in quite some time. However, that doesn’t mean there were no ups and downs or new and different challenges and opportunities. AEM says there’s little doubt that corn and soybean farmers will remember 2021 for many years. While the growing season turned out well for many, it sets the stage for much higher prices for everything from farm inputs to equipment to land rents and values. On the input side, everything from fuel to equipment to labor all started increasing dramatically. Fertilizer prices took off at the fastest rate. Contributing factors include supply chain worries, inflationary concerns in the broader economy, high energy prices, and the prospect of very strong farmer demand. Another interesting factor was the rising price of soybean oil from 30 cents a pound to 70 cents through most of 2021. Bakers in the U.S. want the EPA to help by rolling back biodiesel mandates. *********************************************************************************** World Dairy Expo Looking for Next GM The World Dairy Expo’s Board of Directors has begun the search for a new general manager. Scott Bentley recently announced he will retire after eight years of dedicated service to the organization. “We are grateful for Scott’s commitment and leadership to World Dairy Expo and wish him the very best as he begins his retirement,” says Bill Hageman, WDE Board President. They’re looking to hire a passionate and highly motivated general manager to lead a professional, dedicated team and successfully produce the largest dairy event in the world. World Dairy Expo showcases over 2,000 dairy cattle and features 700 participating companies in one of the 30 largest trade shows in the U.S. The weeklong event attracts 60,000 attendees and generates approximately $25 million in direct spending for Madison, Wisconsin, and the surrounding area. Qualifying individuals with excellent management and communication skills should go to www.worlddairyexpo.com for more information or to apply. *********************************************************************************** Survey Announces Top Tractor Brands in Progressive Farmer Poll The 2021 Progressive Farmer Reader Insights Study shows Kubota ranked highest among U.S. tractor brands for both Overall Durability as well as the top Overall Customer Experience. John Deere ranks highest among tractor brands for Overall Loyalty. At each specific tractor segment level, Kubota and John Deere dominated the top of the rankings, while New Holland also took a top spot. Kubota took the top spot among compact tractor brands for the Best Ownership Experience and Most Durable Tractor. John Deere swept the Highest Owner Loyalty category among Compact, Midsize, and Full-Size tractors. Deere also took home awards for the Most Durable Full-Size Tractor and Best Ownership Experience among Midsize and Full-Size tractors. New Holland ranked highest among Midsized Tractors for Durability. “Our survey is the most relevant benchmark for understanding which tractor brands are delivering on their brand promise,” says Greg Hillyer, Progressive Farmer Editor. The Progressive Farmer Reader Insights survey is in its second year.
| Rural Advocate News | Wednesday December 8, 2021 |
Wednesday Watch List Markets Wednesday is a slow day for government reports, with only the Jobs Opening report out early. We will also be watching for the rumored EPA release of biofuel mandates, and for any new soybean or corn purchases by China, which have been widely rumored. Weather A system in the Southeast is producing some rain and will gather some snow showers in the Northeast later in the day. Another system is making its way into the Canadian Prairies, producing some snows. And there are still some residual rain showers in California. But the middle of the country is rather dry for the day, which continues to be unfavorable for winter wheat in the Southern Plains.
| Rural Advocate News | Tuesday December 7, 2021 |
AEM Reports Optimism for Construction and Ag in 2022 While the U.S. and global economies have continued to grow, the pace has slowed over the second half of 2021. But in the construction and agriculture equipment industries, stronger-than-expected growth this year has many manufacturers feeling optimistic about 2022. According to results from AEM’s fall member survey, more than 80 percent of AEM members anticipate rising demand for construction and agriculture equipment over the next year. Roughly 65 percent think demand for ag equipment will be above normal, while 44 percent think demand for construction equipment will be above normal. Manufacturers face some headwinds, though, including labor, supply chain issues and widespread inflation. However, roughly 58 percent in the construction segment and 44 percent in the agriculture segment think the global economy will recover within the next year. Farmers have been taking advantage of their good financial position to invest in new equipment. In 2022, AEM members feel that most key ag equipment categories will see growth similar to this year. *********************************************************************************** USDA Announces Local Food Purchase Assistance Program The Department of Agriculture Monday announced the establishment of the Local Food Purchase Assistance Cooperative Agreement Program. The program will award up to $400 million for emergency food assistance purchases of domestic local foods. Utilizing American Rescue Plan funds, the purchases will help “to transform the food system and build back a better food system,” according to USDA. The awards will be made through non-competitive cooperative agreements with state and tribal governments. The effort will place an emphasis on purchasing from historically underserved farmers and ranchers. Eligible state and tribal governments can apply now until April 5, 2022, at www.grants.gov. USDA’s Food and Nutrition Service also announced the availability of up to $50 million in funds provided by the American Rescue Plan. Those funds are for Emergency Food Assistance Program Reach and Resiliency Grants. The grants intended for state agencies help expand program access in rural, tribal, and other currently underserved areas. *********************************************************************************** USDA to Begin National Agricultural Classification Survey USDA’s National Agricultural Statistics Service mails the National Agricultural Classification Survey this month. The survey goes to more than a million potential U.S. agricultural producers, in preparation for the 2022 Census of Agriculture. The survey will ask recipients if they are involved in agricultural activity and for basic farm information. Response to the survey is required by law for all who receive the questionnaire, even if the recipient is not an active farmer or rancher. USDA defines a farm as any place from which $1,000 or more of agricultural products are produced and sold, or are normally sold, during the year. The definition was first used for the 1974 Census of Agriculture and is consistent across USDA surveys. Census and Survey Division Director Barbara Rater says the survey “is one of the most important early steps to determine who should receive next year’s Census of Agriculture.” Questionnaires can be completed online or by mail. The response deadline is January 24. *********************************************************************************** USDA Awards Funds for Fiscal Year 2022 Market Development Programs USDA’s Foreign Agricultural Service awarded fiscal year 2022 funding to more than 60 U.S. agricultural organizations to help expand commercial export markets for U.S. goods. The Market Access Program focuses on consumer promotion, including brand promotion for small companies and cooperatives, and is used extensively by organizations promoting fruits, vegetables, nuts, processed products, and commodities. The Foreign Market Development Program focuses on trade servicing and trade capacity building by helping to create, expand and maintain long-term export markets for U.S. agricultural products. FAS Administrator Daniel Whitley says, “These programs play a significant role in supporting the U.S. agricultural industry that achieved record exports in 2021 and is projected to do even better in 2022.” Under the Market Access Program, FAS will provide $175.6 million for fiscal year 2022 to 67 nonprofit organizations and cooperatives. For the Foreign Market Development Program, FAS will allocate $26.8 million for fiscal year 2022 to 21 trade organizations that represent U.S. agricultural producers. *********************************************************************************** House Lawmakers Introduce CBD Product Safety and Standardization Act A group of House lawmakers last week introduced the CBD Product Safety and Standardization Act. The legislation will establish federal standards for CBD food and beverage products to protect consumers and provide marketplace stability for farmers and retailers. New York Democrat Kathleen Rice led the effort and says, “the lack of federal regulation surrounding CBD products has put consumers at risk and left businesses looking for clarity.” The bipartisan CBD Product Safety and Standardization Act would allow FDA to regulate CBD as it would any other food ingredient and subject the products to enforceable safeguards to ensure accountability. It also charges the agency with establishing CBD content limits and packaging and labeling requirements, and determining in which categories of food CBD is appropriate for use. The bill will help distinguish responsible players from bad actors that ignore federal requirements for quality, manufacturing, labeling, and claims, and bring safety and clarity to the market. *********************************************************************************** Webinar to Focus on Reducing Carbon, Emissions, in Ag The Diesel Technology Forum plans a webinar with industry leaders about the future policy, technology and fuels considerations for agricultural machines and equipment. The free webinar “Making America’s Farms Greener and More Productive with Advancements in Farming Technology” takes place December 16, 2021. The organization’s executive director Allen Schaeffer says, “Diesel engines power the majority of agricultural equipment, and are evolving to continue to serve this sector in the future which will include new fuels and options.” Leaders in agricultural machines and equipment will explore how new innovations in machines, fuels and the use of smart farming systems are contributing to boosts in productivity and yields, with lower emissions and share their insights on the future. The free webinar is part of a series exploring strategies to reduce greenhouse gas and other emissions across key sectors of the economy. While free, registration is required to participate. For more information, visit http://www.dieselforum.org.
| Rural Advocate News | Tuesday December 7, 2021 |
Tuesday Watch List Markets It's a light day of economic reports, but the Trade Deficit Report will be out early on Tuesday. We will also be watching for additional China soybean sales, and any confirmation of rumored corn sales to China. Weather A weak system will bring some light snow to the Midwest Tuesday. Later in the day, a cold front stuck in the Southeast will light up with scattered showers as well. Temperatures are quite variable across the country, but not as cold across the Northern Plains as we saw yesterday.
| Rural Advocate News | Monday December 6, 2021 |
Government Grants a Reprieve on Potash Tariffs The U.S. Treasury Department’s Office of Foreign Assets Controls agreed to provide a reprieve through April of next year on sanctions on imported potash fertilizers. The fertilizers under sanctions were coming into the U.S. from Belarus. “This is a win for the American farmer,” says National Corn Growers Association President Chris Edington. “Farmers are having a very hard time getting the fertilizers they need, so a positive development like this could not come at a better time.” NCGA and other groups were talking with the Treasury Department back in November and expressing concerns that sanctions on potash were resulting in fertilizer shortages across the country. “The American farmer should not have to suffer for the trade practices of foreign governments or for disagreements with multinational corporations,” Edgington adds. “Yet, that’s exactly what happens when sanctions are put in place.” In that situation, he says farmers pay the price while others profit. *********************************************************************************** Biofuel Blending Proposals Coming in Days The Biden administration plans to issue its proposals on how much biofuel refiners have to blend into the nation’s fuel supply for this year and 2022. Sources familiar with the discussions say officials are reaching out to lawmakers to talk about the move that could come within days. The administration delayed the 2021 blending obligations by over a year and missed a deadline to finalize the 2022 obligations last week. A source told Reuters that the Environmental Protection Agency has told at least two Democratic lawmakers to expect retroactively lower volumes for 2021 and 2022. The oil and biofuel industries have both called for the EPA to announce the proposals, saying the delays are creating uncertainty in the fuel market. The delays came as COVID-19 continued to push fuel demand to low levels and while Democratic lawmakers focused attention on other legislation. Officials in the EPA, which oversees the mandates, declined to give specifics on the timing of the announcement. *********************************************************************************** Growth Energy Testifies on RVO Compliance Extension The Environmental Protection Agency heard testimony last week on its proposal to extend the Renewable Fuel Standard compliance deadline for refiners. Chris Bliley (BLY-lee) is the Senior Vice President of Regulatory Affairs for Growth Energy, and he testified on the proposed extension. “The intent of the RFS is to blend more biofuels into our nation’s transportation fuel supply, period,” Bliley said. “It’s not meant to reward oil companies for suing to prevent higher blends and then demand that the agency further delay compliance.” He cites recent research that shows greenhouse gas emissions from corn ethanol are 46 percent lower than gasoline. “With that, it makes no sense why the EPA would continue to allow further delays for oil companies to demonstrate compliance with their blending obligations,” he added. “EPA should take immediate steps to restore the integrity of the RFS, restore lost biofuel demand, and remove hurdles to E15 and higher biofuel blends.” *********************************************************************************** NCC Comments on Labeling Cell-Cultured Meat and Poultry The National Chicken Council commented on the labeling of cell-cultured meat and poultry products. The NCC says those products need to be marketed in a way that clearly conveys their basic nature to consumers. That will avoid confusing consumers regarding the difference between cell-cultured protein products and traditional animal protein products. “This approach ensures a neutral playing field and gives consumers truthful information about the differences between the products,” says NCC Senior Vice President of Scientific and Regulatory Affairs Ashley Pederson. “That will allow consumers to make the choices they think are most important to their family.” The NCC says it’s not appropriate to refer to cell-cultured products using terms like “clean meat.” In their comments, NCC issued six recommendations, including a term such as “Cell-Cultured” should be included in the product name on the label. They also want the Food Safety and Inspection Service to establish a codified standard of identity for the products. *********************************************************************************** USDA Investing $633 Million for Rural Climate-Smart Infrastructure The USDA is investing $633 million to reduce the impacts of climate change on rural communities. “Rural America is on the front lines of climate change, and our communities deserve investments that will strengthen all of our resilience,” says Ag Secretary Tom Vilsack. “This investment will create a roadmap on how we can tackle the climate crisis and expand access to renewable energy infrastructure. At the same time, we’ll create good-paying jobs and save people money on their energy costs.” The funding will help people in all 50 states and Puerto Rico. Vilsack says the investments will help build and improve rural electric infrastructure and connect residents to affordable and dependable power. “The investments will help agricultural producers and rural small businesses purchase and install renewable energy systems and make energy-efficiency improvements,” Vilsack adds. During the announcement, Vilsack highlighted 791 investments that USDA is making to help people and businesses in rural areas. *********************************************************************************** Producers Get More Flexibility on Prevented Planting Acres Senate Ag Chair Debbie Stabenow and longtime committee member John Thune applauded the USDA announcement on prevented planting acres. The Risk Management Agency is implementing their recommendation to remove the arbitrary November 1 restriction for harvesting or grazing cover crops on prevented plant acres. The announcement gives greater flexibility to producers in northern areas of the U.S. “USDA will now encourage more cover cropping by making sure farmers don’t face a crop insurance penalty when extreme weather causes them to miss the planting season,” Stabenow says. “That means healthier soils, less erosion, and better capacity to capture carbon.” Thune also says he’s been a staunch advocate for this change for years. “Congress and this administration must support producers who use cover crops by working to remove the arbitrary barriers to ensure their success,” he says. Stabenow and Thune have worked together for several years to get the November 1 restriction removed.
| Rural Advocate News | Monday December 6, 2021 |
Monday Watch List Markets DTN's Ag Summit kicks off Monday with a discussion with Ambassador Terry Branstad. For everyone else, Monday involves checking the latest weather forecasts, checking for an export sale at 8 a.m. CST and noticing the weekly grain inspections report at 10 a.m. CST. There are no more Crop Progress reports for 2021. Weather Colder, more seasonal temperatures are in store for the central U.S. Monday. Precipitation will occur in a line of showers from the Deep South through the interior Northeast. Periods of snow are also in store in the far northern Midwest and in higher elevation areas of the Northwest.
| Rural Advocate News | Friday December 3, 2021 |
High Fertilizer Costs to Extend into Spring Planting A dramatic rise in fertilizer prices weighs heavily on U.S. crop farmers and input suppliers as they prepare for the 2022 planting season. Prices for nitrogen-based fertilizers commonly used for corn production have skyrocketed to all-time highs in recent months. Fertilizer price increases are driven by nitrogen production challenges, tight global supplies, rising natural gas costs and steady demand. According to a new report from CoBank's Knowledge Exchange, fertilizer prices are expected to remain elevated for at least the next six months and throughout the 2022 spring agronomy season. The report also suggests that while U.S. soybean acres will rise nominally compared to 2021 because of higher fertilizer prices, the total volume of soybean acres will not exceed corn acres in 2022. U.S. crop farmers and farm supply cooperatives are facing operational anxiety heading into 2022, driven by high fuel prices, shortages of agrochemicals due to COVID-related disruptions and, most importantly, the rise in fertilizer prices. *********************************************************************************** Preliminary Commerce Decision Favors Fertilizer Tariffs The U.S. Department of Commerce this week made a preliminary determination in favor of a complaint filed by CF Industries. The complaint alleges that urea ammonium nitrate imports from Russia and Trinidad and Tobago are unfairly subsidized by their governments. As a result, the Commerce Department recommends countervailing duties on fertilizers from these countries. The decision comes on the heels of a decision by the U.S. International Trade Commission in March to grant a petition by the Mosaic Company to place tariffs on phosphorous fertilizer imported from outside the country. Those tariffs were also recommended by the Commerce Department. The National Corn Growers Association expressed disappointment in the action. NCGA President Chis Edgington says, "Farmers shouldn't have to pay for disputes between American fertilizer companies and foreign producers.” Edgington adds farmers across the country have spoken publicly over the last several weeks about the severe impact fertilizer shortages are having on the budgets of family farms. *********************************************************************************** USDA Improves Crop Insurance for Hemp Producers The Department of Agriculture Thursday announced improvements to crop insurance for hemp. USDA’s Risk Management Agency is adding flexibilities around how producers work with processors as well as improving consistency with the most recent USDA hemp regulation. RMA Administrator Marcia Bunger says, “RMA has worked to expand and refine our offerings to be responsive and dynamic.” RMA revised the policy to add flexibility to the insurability requirements for hemp under contract. Producers are no longer required to deliver hemp without economic value for insurability. However, contracts between producers and processors may still include delivery requirements. Additionally, RMA clarified how the amount of insurable acreage is determined if the processor contract specifies both an acreage and a production amount. The change was made in the policy to ensure producers know how their insurable acreage is determined for those contracts. To ensure consistency, RMA updated references to regulations, including the Agriculture Marketing Service final rule, which took effect March 22, 2021. *********************************************************************************** Legislation Calls for Federal Milk Marketing Order Class I Pricing Hearings New legislation introduced this week in the Senate calls for Federal Milk Marketing Order hearings addressing Class I milk pricing. Democrats Kirsten Gillibrand of New York, Patrick Leahy of Vermont, and Republican Susan Collins of Maine introduced the bipartisan Dairy Pricing Opportunity Act. The bill requires the Department of Agriculture to initiate the process of holding Federal Milk Marketing Order hearings within six months, allowing producers and industry to consider and review proposals that could change Class I skim milk pricing. National Milk Producers Federation President Jim Mulhern says the bill “adds bipartisan momentum to a range of critical milk pricing discussions that dairy farmers are having.” Before the 2018 Farm Bill, Class I milk was calculated using the “higher of” Class III or Class IV price plus the applicable Class I differential. The calculation was changed in the most recent Farm Bill to an averaging method of Class III and Class IV plus $0.74. *********************************************************************************** United Plane Flies One Engine on 100% Sustainable Aviation Fuel United Airlines flew more than 100 passengers to Washington, D.C. this week on a plane with one engine running on 100 percent sustainable aviation fuel. The Boeing 737 MAX 8 used 500 gallons of sustainable aviation fuel in one engine and the same amount of conventional jet fuel in the other engine to further prove there are no operational differences between the two. Also, Federal Aviation Administration regulations limit the use of sustainable aviation fuel to 50 percent of all fuel on board. Sustainable aviation fuel is made with non-petroleum feedstocks, such as biomass from plants, animal waste fat, solid waste from homes such as paper and food scraps and even used cooking oil, according to oil industry company BP. United recently agreed to purchase 1.5 billion gallons of sustainable aviation fuel from Alder Fuels - enough to fly more than 57 million passengers and is also an investor in Fulcrum BioEnergy. *********************************************************************************** USDA Issues Final Pandemic Payments for Timber Harvesters and Haulers The Department of Agriculture announced final pandemic assistance payments for the timber industry starting next week. USDA will provide $200 million through the Pandemic Assistance for Timber Harvesters and Haulers to loggers and log trucking businesses. The funds are for businesses that experienced a gross revenue loss of at least ten percent between January 1 and December 1, 2020, compared to the same period in 2019. Eligible applicants must have derived at least 50 percent of total gross revenue from timber harvesting or timber hauling. The Farm Service Agency issued initial payments up to $2,000 as applications were approved. Based on the number of actual applications filed, FSA lowered the payment limitation for the program from $125,000 to $75,000 and applied a payment factor of 70.5 percent across all calculated payments to ensure program costs do not exceed the available funding. The provisions were previously outlined in the Notice of Funding Availability in the event the revenue loss reported exceeded available funding.
| Rural Advocate News | Friday December 3, 2021 |
Friday Watch List Markets On the first Friday of December, nonfarm payrolls and the unemployment rate for November are both due out at 7:30 a.m. CST. Traders will continue to watch the weather forecasts, especially for South America and for any news of an export sale. Weather A weak system is bringing some showers to the northern Midwest on Friday. The cold front to the system is pushing through the Plains and Midwest and bringing near-record temperatures down several degrees, but temperatures are still mild for December across much of the country today.
| Rural Advocate News | Thursday December 2, 2021 |
USDA Updates 2021 Farm Income Forecast USDA’s Economic Research Service updated farm sector profit projections Wednesday, which are expected to increase in 2021. ERS forecasts inflation-adjusted net cash farm income, which is gross cash income minus cash expenses, to increase $12.6 billion to $133 billion. U.S. net farm income is forecast to increase by $18.4 billion from 2020 to $116.8 billion in 2021. Net farm income is a broader measure of farm sector profitability that incorporates noncash items, including changes in inventories, economic depreciation, and gross rental income. At that level, net farm income would be 24.2 percent above its 2000–2020 average of $94 billion and the highest since 2013. Inflation-adjusted net cash farm income would be 16.9 percent above its 2000–2020 average of $113.8 billion and the highest since 2014. Production expenses are expected to grow by $16.3 billion during the same period, somewhat moderating income growth. Additionally, direct government payments to farmers are projected to fall by $20.2 billion in 2021. *********************************************************************************** Limited Demand for Farm Loans, But Strong Profits for Ag Banks Agricultural lending at commercial banks continued to decline but showed some signs of stabilizing in the third quarter. Data reported by the Kansas City Federal Reserve Bank Wednesday shows farm debt decreased at the slowest pace in two years. Non-real estate debt declined substantially slower than in recent quarters, and farm real estate loans increased slightly for the first time since mid-2019. Performance on agricultural loans also continued to improve, leading to a five-year low in delinquency rates. With support from stronger loan performance and lower interest expense, profitability for farm lenders remained near historic highs. Prospects for farm income in 2021 remained strong heading into year-end alongside continued strength in commodity markets. Elevated commodity prices have boosted revenues for producers and supported a swift improvement in agricultural credit conditions and a surge in farmland values. However, rising input costs are likely to increase credit needs and stress profit margins going forward. *********************************************************************************** USDA Updates Crop Insurance to Support Conservation and Climate Mitigation Efforts The Department of Agriculture Wednesday announced updates to crop insurance. USDA says the updates are a response to the needs of farmers, including organic producers, and support conservation of natural resources on agricultural land. Specifically, USDA's Risk Management Agency is making permanent a new provision that allows producers to hay, graze or chop cover crops and still receive a full prevented planting payment. To accommodate the different farming practices across the country, RMA is also increasing flexibility related to the prevented planting "1 in 4" requirement and aligning crop insurance definitions with USDA's National Organic Program. RMA is revising four organic definitions to be consistent with USDA's National Organic Program. RMA also made other changes to Common Crop Insurance Policy Basic Provisions, Area Risk Protection Insurance Regulations, Coarse Grains Crop Insurance Provisions, and other insurance provisions. Producers are encouraged to contact their local USDA Service Center to learn more about the changes. *********************************************************************************** NPPC Hires New Chief Executive Officer The National Pork Producers Council Wednesday announced Bryan Humphreys as the organization's new chief executive officer. Humphreys will take the position on December 21, following the retirement of Neil Dierks. NPPC says Humphreys brings years of experience in the pork industry, including as a former NPPC employee, state association executive and National Pork Board senior vice president, and outside the industry as a campaign operative, lobbyist and business owner. Humphreys says, “I look forward to working alongside producers, stakeholders, state associations and the entire team at NPPC to make a lasting impact for farmers across the country.” Humphreys is originally from Columbus Junction, Iowa, where he grew up on his family farm. The announcement comes as NPPC members are pressing Congress on preventing foreign animal diseases, addressing labor shortages, and reauthorizing a livestock price reporting law. NPPC is hosting its Legislative Action Conference in Washington, D.C., this week, meeting with lawmakers on Capitol Hill. *********************************************************************************** USDA Announces Micro Farm Insurance Policy Agricultural producers with small-scale farms who sell locally can now get simplified insurance coverage through a new policy designed. The Department of Agriculture developed the new Micro Farm policy, which simplifies recordkeeping and covers post-production costs like washing and value-added products. Micro Farm is offered through Whole-Farm Revenue Protection and is geared to local producers. The coverage is available to producers who have a farm operation that earns an average allowable revenue of $100,000 or less, or for carryover insureds, an average allowable revenue of $125,000 or less. The increase in allowable revenue for a carry-over insured will allow for some farm growth in subsequent years before they become ineligible for the program. RMA’s research shows 85 percent of producers who sell locally reported they made less than $75,000 in gross sales. Micro Farm is available for the 2022 crop year. Producers with crops insured under another crop insurance policy or a vertically integrated operation will not be eligible. *********************************************************************************** 2022 National Ag Day Activities Announced The Agriculture Council of America this week announced National Agriculture Day on March 22, 2022. This will mark the 49th anniversary of National Ag Day, which is celebrated in classrooms and communities across the country. The theme for National Ag Day 2022 is "Growing a Climate for Tomorrow." On March 22, 2022, ACA will host a virtual Ag Day event and other events in Washington, DC. Additionally, the organization will bring college students to Washington "virtually" to deliver the message of Ag Day to Capitol Hill. A core leadership team of college students will attend in-person events. Another feature of Ag Day 2022 is the Celebration of Modern Agriculture on the Mall. The events honor National Agriculture Day and mark a nationwide effort to tell the story of American agriculture. Many agricultural associations, corporations, students and government organizations involved in agriculture are expected to participate. Learn more about the events online at www.agday.org.
| Rural Advocate News | Thursday December 2, 2021 |
Thursday Watch List Markets USDA's export sales report is due out at 7:30 a.m. CST, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas supplies is set for 9:30 a.m. Traders are increasingly interested in South American weather forecasts and will watch for any news of an export sale. Weather With the main storm track up in Canada through the day, temperatures will be very warm across the country, and near record-breaking in portions of the Plains. Low temperatures this morning are above normal highs in some places. A system will move from Canada into the Plains and Upper Midwest tonight and may produce some light precipitation across the northern tier.
| Rural Advocate News | Wednesday December 1, 2021 |
USDA Announces Agricultural Outlook Forum Theme and Program The Department of Agriculture Tuesday announced the theme and program of the 98th Agricultural Outlook Forum, a virtual event held February 24-25, 2022. The 2022 Forum theme is "New Paths to Sustainability and Productivity Growth," and the program will focus on innovations to minimize the environmental footprint of agriculture and ensure sustainability while improving crop yields. Agriculture Secretary Tom Vilsack says, “I look forward to discussing with sector leaders how we can work on climate smart solutions that will improve the profitability and resilience of agricultural producers and open new market opportunities.” The Forum will begin with a presentation by USDA Chief Economist Seth Meyer on the Department’s outlook for commodity markets and trade for 2022 and the U.S. farm income situation. Breakout sessions include topics on climate mitigation, innovation, trade, commodity outlooks, supply chain resilience and equity and inclusion. Visit the Agricultural Outlook Forum website to register and learn more. *********************************************************************************** FTC Launches Inquiry into Supply Chain Disruptions The Federal Trade Commission is ordering nine large retailers, wholesalers, and consumer good suppliers to provide detailed information on supply chain disruptions. The information will also show how disruptions are causing hardships for consumers and harming competition in the U.S. economy. The orders are being sent to Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane Company, Procter & Gamble, Tyson Foods, and Kraft Heinz. The companies will have 45 days from the date they received the order to respond. FTC Chair Lina Khan (lee-nuh con) is hopeful the study “will shed light on market conditions and business practices that may have worsened disruptions or led to asymmetric effects.” The orders require the companies to detail the primary factors disrupting their ability to obtain, transport and distribute their products; the impact of the disruptions, the most affected products, the steps taken to alleviate disruptions, and how they allocate products among their stores when they are in short supply. *********************************************************************************** Low October Wholesale Egg Prices Reported in Advance of 2021 Holiday Season Demand for table eggs tends to increase when holiday gatherings and cold weather encourage home baking and cooking. In accordance, wholesale table egg prices, the prices retailers pay to producers for eggs, tend to increase ahead of holidays. Leading up to the 2021 holiday season, however, wholesale prices of table eggs in the United States declined as effects of COVID-19-linked flock adjustments linger. In normal years, producers anticipate seasonal demand by adjusting the size of the table-egg laying flocks and the rate they produce eggs. In 2020, COVID-related disruptions in the demand for eggs led producers to reduce flock sizes. Flock sizes have slowly rebuilt since but remain smaller than the same time in 2019. However, the younger flocks produce more eggs per hen. USDA’s Economic Research Service reported Tuesday that at the beginning of October 2021, the size of the U.S. laying flock was just above the October 2020 levels, and the rate of lay was 1.1 percent higher. *********************************************************************************** Waiver From Trucking Federal Rule Expanded The National Pork Producers Council this week thanked the Biden administration for extending to February 28, 2022, a waiver for commercial truckers from the federal Hours of Service regulation. The rule limits truckers to 11 hours of driving time and 14 consecutive hours of on-duty time in any 24-hour period and requires prescribed rest periods. At the start of the COVID-19 pandemic in March 2020, the FMCSA included livestock haulers in an initial emergency declaration that provided an exemption from the HOS regulation for commercial truckers hauling essential supplies, including livestock. The waiver subsequently was expanded to cover the delivery of livestock feed. NPPC President Jen Sorenson says, “Extending the HOS waiver ensures that livestock truckers can get hogs to market safely and efficiently.” In August, the FMCSA extended the waiver to November 30. Further, a provision in the infrastructure bill recently signed into law expanded the miles agricultural truckers can drive without the HOS restrictions. *********************************************************************************** NCGA: Remember to Submit Ballot for FSA Committee Positions The National Corn Growers Association reminds producers to submit ballots for the Farm Service Agency county committee elections. Voters should return their ballots to their FSA county office by Monday, December 6, or postmark mail-in ballots by the deadline. Committee members represent local farmers at the Department of Agriculture and play an important role in shaping FSA programs. Each committee has from three to 11 elected members who serve three-year terms of office, and at least one seat, which represents local administrative areas, is up for election each year. Newly elected committee members will take office on January 1, 2022. Ballots were mailed to producers on November 1. USDA says it is crucial that every eligible producer take part in the election because county committees are a direct link between the farm community and USDA. Eligible voters who do not receive a ballot in the mail can request one from their local Farm Service Agency county office. *********************************************************************************** Active 2021 Atlantic Hurricane Season Ends The active 2021 Atlantic hurricane season ended Tuesday after producing 21 named storms, including seven hurricanes, four being major hurricanes. The above-average hurricane season was accurately predicted by NOAA's Climate Prediction Center, a division of the National Weather Service, in their May and August outlooks. This year was the third most active year on record in terms of named storms, and marks the sixth consecutive above-normal Atlantic hurricane season. This was the first time on record that two consecutive hurricane seasons exhausted the list of 21 storm names. Since the launch of the storm surge warning and new inundation mapping in 2017, there have been 16 U.S. hurricane landfalls, of which seven were major hurricanes. The 2022 hurricane season will officially begin on June 1. NOAA’s Climate Prediction Center will issue its initial seasonal outlook in May. However, NOAA cautions that now is the best time to prep for hurricane season.
| Rural Advocate News | Wednesday December 1, 2021 |
Wednesday Watch List Markets We will be watching early reports from the government, including the ADP Employment report, Markit Manufacturing PMI, and Construction Spending. We will also be watching for any news on the new COVID variant, and at 8 a.m. will look for any new corn or soy sales. Weather A system moving across the northern tier of the country is bringing scattered showers to mostly the eastern Midwest on Wednesday. Breezy and warm temperatures are following behind the precipitation. The combination of above normal temperatures and dryness continues to be unfavorable for winter wheat development in the Southern Plains
| Rural Advocate News | Tuesday November 30, 2021 |
Tuesday Watch List Markets We will be watching early reports from the government on the Home Index, Chicago Purchasing Manager's Index (PMI), and Consumer Confidence. We will also be watching for new information about the newly detected Covid variant, and any new sales of soybeans and corn. Weather A band of snow has exited the Midwest and another system is building in the Pacific Northwest, but most areas are going to be dry on Tuesday. Warm temperatures will be in place for much of the country as well, with some well above normal temperatures across the Plains and western Midwest. The combination is unfavorable for winter wheat in the Southern Plains, which continues to find increasing drought conditions.
| Rural Advocate News | Monday November 29, 2021 |
Monday Watch List Markets On the final Monday of November, traders will pause at 8 a.m. CST to see if USDA has an export sale to report and will then notice a report of U.S. pending home sales in October at 9 a.m. USDA's weekly grain export inspections is due out at 10 a.m. CST, followed by the final Crop Progress report of 2021 at 3 p.m. CST. Weather Scattered showers will develop across the northern tier of the country on Monday as a system moves through the Midwest and another goes through the Pacific Northwest. Showers will be mostly light while the south stays dry, unfavorable for winter wheat in the Southern Plains.
| Rural Advocate News | Friday November 26, 2021 |
USDA Cuts Ag Export Forecast for 2022 The USDA cut its farm exports forecast in 2022, blaming weaker soybean demand from China and lower soybean prices. The Economic Research Service says it now expects American ag exports to hit $175.5 billion in the fiscal year 2022, down from the August forecast of $2 billion. The agency says soybean exports will be down $3.9 billion next year for a total of $28.4 billion. Soybean meal exports were forecast to slump by $800 million to $4.9 billion due to lower prices. Looking ahead, China is expected to remain as the largest U.S. agricultural market, with exports forecast now at $36 billion, a $3 billion drop from USDA’s August prediction. The drop in soybean exports should be at least partly offset by increasing livestock, poultry, dairy, cotton, and ethanol exports. USDA predicts corn, sorghum, and rice exports will drop by $100 million each. Wheat exports are unchanged from August at $7.1 billion. *********************************************************************************** NCGA: Court Will Review Fertilizer Brief The U.S. Court of International Trade says it will review an amicus brief submitted by the National Corn Growers Association and other ag groups. The brief involves a case the court is considering regarding tariffs on phosphorous fertilizers imported from outside the country. In the brief, the NCGA says, “Farmers, faced with severe shortages and high fertilizer costs, are calling on a major American fertilizer company to withdraw the petition that led to the tariffs.” The Commerce Department recommended in February that the International Trade Commission implement tariffs over 19 percent on imported fertilizers from Morocco after the Mosaic Company, which manufactures fertilizers used in the U.S. and around the world, filed a petition with the department seeking the levies. “Executives at Mosaic can eliminate this financial burden on farmers just by getting rid of the petition,” says NCGA President Chris Edgington. “We invite them to do just that.” The ITC approved the tariffs back in March. *********************************************************************************** Farm Real Estate Values Jump Sharply Higher The Federal Reserve Survey of Agricultural Credit Conditions shows that farmland values rose in the third quarter of this year. The value of non-irrigated cropland rose by at least 12 percent in all of the participating Districts in the survey. The rapid increase was consistent in most states, with annual increases of more than 20 percent in some areas. Supporting farm real estate markets, interest rates on farm loans remained at historic lows, and strong farm finances also led to further improvement in agricultural credit conditions. Despite consistent concerns about the increasing cost of inputs, agricultural lenders expect farm income and credit conditions to remain strong through the end of the year alongside higher commodity prices. At the same time, the rising value in farmland has bolstered farm balance sheets and provided additional support to the ag sector. The outlook for farm finances and agricultural land values remains strong through the end of 2021. *********************************************************************************** Defend the Blend Act Introduced in the House Growth Energy CEO Emily Skor (score) issued a thank you to lawmakers for introducing the Defend the Blend Act into the House of Representatives. The bill’s main sponsors include Republicans Ashley Hinson of Iowa and Rodney Davis of Illinois, and Democrats Angie Craig of Minnesota and Ron Kind of Wisconsin. “We thank these lawmakers for introducing the Defend the Blend Act, legislation that would offer more certainty in the marketplace, especially as we await the 2021 and 2022 RVOs from the Environmental Protection Agency,” Skor says. “The Renewable Fuel Standard was put in place to blend more low-carbon biofuels into our nation’s transportation fuel supply and includes a built-in mechanism that adjusts for any changes in fuel demand.” She also says retroactively changing RVO levels is completely unnecessary, adds uncertainty to the marketplace, and far exceeds the EPA’s legal authority. Earlier this fall, rumors said that EPA was considering retroactively reducing the 2020 RVO. *********************************************************************************** European Union Approves Large Farm Subsidies Deal The European Parliament approved the biggest reform to their farm subsidies in decades. Reuters says the vote switches much of the cash subsidies to smaller farms and rewards producers who use more sustainable farming methods. The Common Agricultural Policy has been criticized for years over the way the bulk of EU ag subsidies went to large landowners and industrial ag firms. Backers of the deal say the reform will change that. However, environmentalists say the deal doesn’t go far enough in taking care of the environment and fighting climate change. The Chair of the European Parliament’s Ag Committee called it the biggest reform since 1992. The Common Ag Policy will spend 387 billion euros, or $436 billion, on payments for farmers and support for rural development. The new rules which start in 2023 shift funds away from intensive farming to more protection of nature and cut EU greenhouse gases by 10 percent. *********************************************************************************** USDA Accepting Applications for Rural Broadband Assistance The USDA says it’s begun accepting applications for up to $1.15 billion in loans and grants to help rural residents get access to high-speed internet. The announcement comes shortly after the recently approved Bipartisan Infrastructure Law earmarked another $2 billion in additional funding for the ReConnect Program. “High-speed internet is the new electricity,” says Ag Secretary Tom Vilsack. “It must be reliable, affordable, and available to everyone.” He also says the funding that USDA is making available should go a long way toward making rural broadband much more accessible. “Expanding broadband availability in rural areas will help to create jobs, help farmers use precision ag technologies, expand access to education and healthcare in rural communities, and create economic opportunity for millions of rural residents,” Vilsack adds. USDA says it will issue a new Notice of Funding Opportunity to make the additional funds in the Bipartisan Infrastructure Law available in 2022. The $1.15 billion in ReConnect funding is available immediately.
| Rural Advocate News | Friday November 26, 2021 |
Friday Watch List Markets USDA's weekly export sales report is due out Friday at 7:30 a.m. CST and is the only official report of the day. Traders will check to see if USDA has an export sale announcement at 8 a.m. U.S. grain and livestock futures markets open at 8:30 a.m. and close early, at 12:05 p.m. Desperate for extra attention, Minneapolis wheat will close 10 minutes later. Weather A cold front that brought some scattered showers over Thanksgiving to the middle of the country is pushing off to the east on Friday. Some lake-effect snows will continue around the Great Lakes behind the system but most areas will see quieter and dry conditions.
| Rural Advocate News | Wednesday November 24, 2021 |
Farm and Biofuel Groups React to BBB Act Provisions Several agricultural groups reacted to key provisions found in the Build Back Better Act. Growth Energy, the National Corn Growers Association, the National Farmers Union, and the Renewable Fuels Association are grateful for the Congressional efforts to build new markets for farmers and biofuel producers. In a letter to the chairs of the House and Senate Ag Committees, the groups also say they appreciate the efforts to help lower the carbon intensity of agriculture. “One of the most pressing challenges facing biofuel producers is ensuring that consumers have consistent access to higher-level ethanol and biodiesel blends, which are lower carbon and lower cost than petroleum fuels,” they say in the letter. “The Biofuel Infrastructure and Agriculture Product Market Expansion provision in the BBB Act helps address this issue and contains much-needed funding to ensure consumers have access to these fuels.” That refers to the $1 billion allocated to upgrade refueling and distribution infrastructure meant for higher ethanol blends. *********************************************************************************** Trouble Ahead for the Next Farm Bill A Successful Farming article says there may be trouble ahead for the upcoming Farm Bill in Washington, D.C. A former USDA official says the 2023 legislation could be in trouble if the political turbulence surrounding the last two farm bills keeps going into next year. “The deep polarization heightens the uncertainty of how this farm bill will unfold in Congress,” says Jonathan Coppess of the University of Illinois. The House defeated the normally-bipartisan bill in 2013 and 2018 because of a partisan battle over reduced SNAP spending. The 2013 vote was the first time the farm bill had ever gotten defeated on the House floor. More potential backlash over the farm bill could include the $53 billion worth of trade war and coronavirus relief payments given to farmers since 2018, as well as the disparity in support between cotton and rice compared to corn, beans, and wheat. “It’s a foggy path between here and 2023,” Coppess says. *********************************************************************************** Farm Groups Ask Administration to be Firm on WTO Issues A coalition of farm groups wrote to U.S. Trade Representative Katherine Tai and Ag Secretary Vilsack on challenges surrounding the World Trade Organization. The Hagstrom Report says those groups are pleased that Ambassador Tai gave strong statements on engaging boldly with the WTO. They want the Biden administration to try and get the public stockholding and the special safeguard mechanism proposals at the WTO eliminated in connection with the upcoming 12th Ministerial Conference. In a letter to officials, the groups say that the proposals related to public stockholding and the special safeguard mechanism are remnants of a negotiation that’s decades old. The PSH proposal would significantly weaken the discipline process on domestic subsidies, while the SSM proposal will seriously limit U.S. export access to developing countries. “Adopting these proposals will point the reform process in the wrong direction and doom future negotiations to failure,” the letter says. The coalition includes the American Farm Bureau, along with crop, meat, and export groups. *********************************************************************************** USDA Invests $32 Million to Strengthen Supply Chain USDA Secretary Tom Vilsack says his agency will invest $32 million in grants awarded to 167 meat and poultry slaughter and processing facilities to expand capacity and efficiency in the food supply chain. The funds went to smaller meat and poultry slaughtering and processor facilities and come through the Meat and Poultry Inspection Readiness Grant Program. “Today’s investments support local and regional meat and poultry processors as they recover from COVID-19 and also work to expand their capacity,” Vilsack says. “Getting a Federal Grant of Inspection or operating under a Cooperative Interstate Shipment program allows meat and poultry processors to ship across state lines, pursue new market opportunities, and better meet demand across the supply chain.” With these grants, meat and poultry processors can cover the costs for improvements like expanding existing facilities and modernizing their processing equipment. These opportunities will allow facilities to serve more customers in more markets. For more information, go to www.usda.gov. *********************************************************************************** U.S., India Reach Agreement on Ag Trade India and the United States agreed to expand trade between the nations on some agricultural products. Those include U.S. cherries, alfalfa, and distiller’s dried grains, as well as Indian mangoes, grapes, shrimp, and water buffalo. The two sides came together in the first U.S.-India Trade Policy Forum meeting in four years. The trade ministers also talked about the possibility of restoring India’s trade benefits under the U.S. Generalized System of Preferences. The two countries have disputed over a range of issues recently, including tariffs that dampened the prospects of reaching a bilateral trade deal. Yahoo Dot Com says they talked about American interest in supplying India with ethanol, as well as speeding up phytosanitary work to allow more agricultural imports between the two nations. Tai recently concluded a visit to India to try and rebuild trade ties between the world’s richest and largest democracies. The Ministers of both countries committed to continue working on trade issues in the future. *********************************************************************************** Thanksgiving Apple Pie Will Cost a Little More This Year As American consumers finalized their Thanksgiving menus, they likely found out that their apple pie deserts will cost a little more this year. The USDA says shoppers will pay about $7.32 for the ingredients, more than half of which is the cost for apples, which is $4.22. The same pie ingredients cost approximately $6.75 last year, which means the total cost this year is 8.4 percent higher than 2020. USDA says the cost increase is driven by the price of Granny Smith apples, which increased to $1.41 per pound this year compared to an average of $1.26 last year. Sugar, eggs, butter, and lemons also increased in price since 2020, while flour prices dropped over the same period. If the apple pie is served a la mode, add in an additional 31 cents per scoop, the same price as last Thanksgiving. While USDA used price points from October, the actual cost may decrease if retailers offer holiday discounts.
| Rural Advocate News | Wednesday November 24, 2021 |
Wednesday Watch List Markets On Wednesday before Thanksgiving, weekly U.S. jobless claims, durable goods orders for October and another estimate of third quarter U.S. GDP are all due out at 7:30 a.m. CST. At 9 a.m., there are reports of October new home sales, U.S. personal income and the University of Michigan's consumer sentiment index. The Energy Department's weekly inventory report is due out at 9:30 a.m., followed by the natural gas storage report at 11 a.m. Minutes from the most recent FOMC meeting are set for 1 p.m. CST. U.S. grain and livestock futures have normal closes Wednesday and do not trade again until Friday morning at 8:30 a.m. CST. Weather A strong front is pushing across the Plains and Midwest on Wednesday. Showers are limited Wednesday morning but should develop across the far southeastern Plains and southwestern Midwest by tonight. Some breezy winds will occur both ahead and behind the front across the Plains and Midwest as well. Cold weather continues to push through the Southeast with the first frosts and freezes of the season all the way south to the Florida Panhandle.
| Rural Advocate News | Tuesday November 23, 2021 |
Tuesday Watch List Markets There are no major reports on Tuesday's docket, but traders will keep their eyes on the latest weather forecasts and any export sales news that develops. Be careful as quiet, pre-holiday markets can be vulnerable to trading mischief. Weather A frontal boundary is moving through the Canadian Prairies and will move into the Northern Plains on Tuesday. Scattered showers over the Pacific Northwest will dry out as they work into the Plains behind the front Tuesday night. Most other places will be dry, favoring the last bits of harvest and fieldwork. Rain is still desperately needed for winter wheat in the southwestern Plains, where drought continues to build.
| Rural Advocate News | Monday November 22, 2021 |
House Passes Build Back Better Act Senate Ag Committee Chair Debbie Stabenow applauded the House of Representatives for passing President Biden’s Build Back Better Act. “It’s all about lowering costs for American families and making critical investments to help us combat climate change,” Stabenow says, “especially in partnership with our farmers, ranchers, foresters, and rural communities. I’m fully committed to passing the Build Back Better Act in the Senate.” Ag Secretary Tom Vilsack says Americans need this important legislation to build up the middle-class and American competitiveness. “That will ensure that people in rural communities have a fair shot at opportunities and will secure our children’s future,” Vilsack says. “This is our nation’s largest effort to combat climate change and includes a focus on climate-smart agriculture.” House Ag Committee Chair David Scott says the act includes a lot of his committee’s agricultural priorities. “The investments are critical to helping American agriculture address and deal with the impact of climate change,” Scott says. *********************************************************************************** Proposed Water Rule a Return to “Overreach” Ag groups are reacting to the Environmental Protection Agency’s proposed rule to replace the Navigable Waters Protection Rule, and they’re not happy with the idea. The proposed rule would re-establish the pre-2015 definition of “Waters of the U.S.” American Farm Bureau President Zippy Duvall says his group is disappointed that the agency is returning to an “overly complicated” interim water rule. “Overreaching regulations create major permit backlogs for the federal government and result in long delays for farmers and ranchers working hard to keep America fed,” Duvall says. “They’re putting this in place before completing the promised stakeholder engagement.” National Corn Growers Association President Chris Edgington says the administration is taking farmers backward by removing a rule that’s provided “certainty” for farmers who feed and power America. “NCGA will continue to work with agencies and advocate for a WOTUS definition that provides farmers with clarity about obligations under the Clean Water Act,” Edgington says. *********************************************************************************** Possible Tax Credit Ahead for Soy Oil-Based Aviation Fuel Lawmakers are considering a bill that would allow soybean oil-based jet fuel to qualify for an unprecedented tax credit. A Reuters article says that would be a win for biofuel producers and a blow to environmental groups that say crop-based fuels undermine the benefits of producing greener fuels. The announcement comes as the Biden administration set the lofty target of lowering aviation emissions by 20 percent by 2030. The White House is pushing for more sustainable aviation fuel, which is currently made in small quantities of substances like used cooking oil and animal fat, as a way to reach their goal. U.S. biofuel groups say it will be impossible to meet such targets without using ethanol and soybean oil and want the current model for determining eligibility for the tax credit to get changed. The Build Back Better Act passed by the House puts the tax credit between $1.25 to $1.75 a gallon. *********************************************************************************** Clinton: White House Likely to Remove Some Tariffs on China Former Secretary of State Hillary Clinton told Bloomberg that the Biden Administration would likely remove some punitive tariffs on Chinese imports. She says there is an ongoing process to try to figure out what America’s best approach to China will be going forward. “I predict there will be some changes,” she says. “However, they won’t all disappear, and some may continue in the new reality we’re living in.” Last month, U.S. Trade Rep Katherine Tai said the administration will directly engage with China to enforce commitments the Asian nation made in a trade deal with former President Trump. After more than two years since the duties took effect, the U.S. and China are shipping goods to each other at a pace that seems to suggest the drawn-out trade war never happened. Tai recently announced that the USTR will reinstate tariff exclusions for some imports from China after previous exemptions expired, and her office is currently taking exclusion requests. *********************************************************************************** Bill Would Suspend Brazilian Beef Imports to the U.S. U.S. Senator Jon Tester of Montana introduced legislation to suspend Brazilian beef imports to the United States. The move comes after repeated issues with delayed reporting of BSE, or mad cow outbreaks in Brazilian beef. Suspending the imports will give experts a chance to conduct a thorough review of the meat’s safety. “Americans deserve the highest level of safety and certainty in their beef, and Brazilian imports don’t make the cut,” Tester says. “Concerns about Brazil’s imports not only jeopardize consumers’ trust but present a serious risk to our country’s producers.” It took until September before Brazil announced two cases of atypical BSE were detected in June. Most countries report outbreaks to the World Organization of Animal Health within days. The bill would ensure Brazil’s beef is safe to eat before it’s brought back into the U.S. market. America’s prominent beef cattle groups came out in support of Tester’s bill. *********************************************************************************** USDA Issuing $270 Million in Pandemic Assistance to Producers The USDA has begun issuing roughly $270 million in pandemic assistance payments to eligible contract producers of livestock and poultry who applied for help. Earlier this year, the Farm Service Agency identified gaps in assistance. USDA then released an improved program for contract producers to help fill those gaps. “We listened to feedback from producers and stakeholders about impacts across livestock and poultry operations and made updates to be more equitable in the assistance we’ve delivered,” says FSA Administrator Zach Ducheneaux (DOO-shah-no). “Filling these gaps and not letting underserved producers slip through the cracks is a common theme throughout our approach under our Pandemic Assistance for Producers Initiative.” The Consolidated Appropriations Act of 2021 provided funding for payments to contract producers of eligible livestock and poultry for revenue losses from January 1, 2020, through December 27 of this year. Contract producers of broilers, pullets, chicken eggs, turkeys, and many other types of livestock and poultry were eligible.
| Rural Advocate News | Monday November 22, 2021 |
Monday Watch List Markets U.S. futures markets are keeping normal trading hours the first three days this week, but volume is apt to be lower than usual with Thanksgiving Thursday and a shorter trading session on Friday. Traders will continue to check the latest weather forecasts and pause at 8 a.m. CST in case USDA announces an export sale. A report of October U.S. existing home sales is due out at 9 a.m. CST, followed by weekly grain inspections at 10 a.m. USDA's Crop Progress report will conclude Monday's reports at 3 p.m. Weather A cold front will move through the Eastern U.S. Monday and showers will dry up as it does so. Other than some lake-effect snow showers around the Great Lakes and some isolated showers in the Southeast, drier conditions are expected for the day across the primary growing areas. Areas of the southwestern Plains continue to be in dire need for moisture for winter wheat establishment.
| Rural Advocate News | Friday November 19, 2021 |
Biofuel Groups Frustrated by Further RFS Delays The Environmental Protection Agency announced a proposal extending the Renewable Volume Obligation compliance deadlines for 2019 and 2020, as well as the RVO for 2021. The agency intends to establish general timeframes for the extended compliance deadlines without setting specific dates. The agency also hasn’t issued decisions on the pending small refinery exemptions. Kurt Kovarik, National Biodiesel Board Vice President of Federal Affairs, calls it a “gift” to refiners. “The Biden Administration and the EPA are sending the wrong signals on fuel availability and gas prices,” Kovarik says. Growth Energy CEO Emily Skor says EPA needs to release the 2021 and 2022 RVOs immediately. “Further delaying compliance deadlines for previous RVO years does nothing but contribute to ongoing uncertainty in the marketplace,” she says. “Sadly, even as our country faces rising gas prices, the EPA and the administration are giving in to the loud voices of the oil industry. It’s past time for the EPA to act.” *********************************************************************************** EPA and Army to Provide Certainty on WOTUS Definition The Environmental Protection Agency and the U.S. Army announced a proposed rule to re-establish the pre-2015 definition of the “Waters of the United States.” The agencies plan to update the rule that’s been in place for decades to reflect consideration of Supreme Court decisions. The action will advance the agencies’ goal of establishing a WOTUS definition that protects public health, the environment, and downstream communities. At the same time, the new rule would support economic opportunity, agriculture, and other industries that depend on clean water. EPA Administrator Michael Regan says the only constant with WOTUS in recent years has been change. “That’s created a whiplash in how to best protect our waters in communities across America,” Regan says. Jaime Pinkham, Acting Assistant Secretary of the Army for Civil Works, says the new rule will be “mindful of implementation practices and will get shaped by the lived experience of local communities and stakeholders.” *********************************************************************************** Deere Employees Approve Contract, End Strike Deere and Company employees brought their five-week-old strike to an end by approving a new six-year contract with the company. United Auto Workers members were immediately prepared to return to their shifts with the agricultural and construction equipment manufacturer. The Des Moines Register says 61 percent of the workers approved the agreement, which raises hourly wages by 10 percent and increases worker retirement benefits. The company also agreed to maintain its health insurance program that employees don’t have to pay premiums for. Just over 10,000 in number, the workers in Iowa, Kansas, and Illinois had rejected two prior contract proposals, setting off the first strike at Deere since 1986. UAW President Ray Curry says, “UAW John Deere members did themselves proud. They seemed to unite the nation struggling for workplace fairness.” In his own statement, Deere CEO John May says, “I’m pleased our highly-skilled employees are back to work building and supporting our industry-leading products.” *********************************************************************************** Thousands of Livestock Dead in Canada Flood The Canadian Broadcasting Corporation says thousands of animals are dying because of severe flooding that devastated farmlands across British Columbia in Canada. Lana Popham is Canada’s Agriculture Minister. She says the government is rushing to get veterinarians to many more animals trapped and facing death. Nearly in tears during a recent press conference, the minister says she’s had heartbreaking FaceTime conversations with farmers in their barns while dead livestock lay in the background. Calling it a complete agricultural disaster, she says desperate farmers tried to move livestock by boat to higher ground, but some had to be abandoned as floodwater rushed into southern B.C. “I can tell you that many farmers attempted to move their animals and had to walk away because the roads were disappearing beneath them,” Popham says. “Even the animals that made it to a safe spot are in rough shape when they finally get to dry ground.” *********************************************************************************** Farm Bureau Says 2021 Thanksgiving Dinner Costs More Thanksgiving 2021 is a chance for family and friends to get together for a meal. However, paying attention to how that feast affects the bottom line is also important. The Farm Bureau’s 36th annual survey shows that the average cost of this year’s classic Thanksgiving feast for 10 is $53.31. It still breaks down to less than $6 per person. It’s a $6.41 increase or a 14 percent increase from last year’s average of $46.90. The centerpiece of most Thanksgiving tables is the turkey, which costs more than last year at $23.99 for a 16-pound bird. While that’s up 24 percent from last year, the Farm Bureau survey took place before many grocery stores had begun to feature their whole turkeys at lower prices in time for the holiday. AFBF Senior Economist Veronica Nigh (NYE) says factors that caused the price increases include inflation pressure and interruptions to the U.S. supply chains. More consumers cooking at home also upped retail prices. *********************************************************************************** 2020-2021 Marketing Year Ranks as Best Export Year Ever U.S. exports of grains in all forms reached an all-time high in the 2020-2021 marketing year. USDA Data analyzed by the U.S. Grains Council showed exports made a nice recovery after two years of decline. Exports in the marketing year rose just over 28 percent to a total of 129.5 million metric tons or 5.2 billion bushels. “Reaching an all-time high record for exports of grains in all forms while we continue to deal with COVID-19 shows the commitment of USGC members to expand grain exports,” says Cary Sifferath (SIF-uh-rath), senior director of global programs. U.S. corn exports rose by 55 percent in 2020-2021 from the prior marketing year to 69.8 million metric tons or 2.7 billion bushels. Corn exports to China hit a record at more than 21.4 million metric tons. U.S. sorghum exports rose 40 percent year-over-year to 7.1 million metric tons, or 283 million bushels. China was the top sorghum market with 6.78 million metric tons of imports.
| Rural Advocate News | Friday November 19, 2021 |
Friday Watch List Markets USDA's monthly cattle on-feed report is the only report on Friday's docket, due out at 2 p.m. CST. Traders will keep their attention on the latest weather forecasts and watch for any new export sales. Next week's trading hours will be shortened by Thanksgiving on Thursday and a shortened trading session on Friday. Weather High pressure settling in behind a cold front that moved through this week will keep the weather relatively quiet on Friday. Some breezy conditions are expected on the backside of the high in the Plains and Upper Midwest, though. Meanwhile showers are moving through the Pacific Northwest with the next system. Most of the showers are occurring in the mountains, however.
| Rural Advocate News | Thursday November 18, 2021 |
Bonnie Confirmed as USDA Undersecretary Senate Ag Committee Chair Debbie Stabenow and Ranking Member John Boozman (BOZE-man) announced that the Senate confirmed Robert Bonnie to a USDA Undersecretary position. The 76-19 vote in favor of the nominee means that Bonnie is the new Undersecretary for Farm Production and Conservation. “Democrats and Republicans praise Mr. Bonnie’s extensive credentials and commitments to tackling the climate crisis and boosting farm income at the same time,” Stabenow says. Commodity groups like the National Corn Growers Association say Mr. Bonnie has an important role with the USDA. “As production agriculture faces multiple challenges, Mr. Bonnie will play an important role in responding to farmer needs,” says NCGA president Chris Edgington. “His previous experience as a USDA Undersecretary is important when it comes to working with a variety of stakeholders and overseeing important USDA agencies. “ Bonnie’s experience, bipartisanship commitment, and ongoing work with farmers, ranchers, and conservationists are reasons the NCGA says it’s looking forward to working with Bonnie. *********************************************************************************** Farm Bureau Says, “Build Back Better” Act Will Hurt Rural America The American Farm Bureau Federation sent a letter to the U.S. House of Representatives stating its opposition to the Build Back Better Act. AFBF President Zippy Duvall says the Act, also known as the reconciliation package, contains some elements that would benefit agriculture. “However, the massive amount of spending and tax increases required to pay for the plan outweigh the gains we would see in rural America,” Duvall says in the letter. “We appreciate efforts in the House to protect farmers and ranchers by leaving key tax provisions untouched. Thousands of small businesses would still be affected by tax increases, forcing them to pass increased costs to families across the nation.” He also says the economy is still recovering from COVID-19, supply chains are stressed, and inflation is putting pressure on American pocketbooks. “Now is not the time to put more burdens on American families struggling to make ends meet,” he says. *********************************************************************************** Ag Lenders Expect Borrowers to be Profitable This Year The American Bankers Association and the Federal Agricultural Mortgage Corporation released their most recent survey of agricultural lenders. The good news is that the lenders expect 80 percent of their borrowers to show a profit in 2021. Looking ahead to next year, the lenders expect that 70 percent of their borrowers will remain profitable through 2022. The report says the agricultural economy was “shaken” by the events of 2020. For the first time in the history of the survey that began in 2016, most of the ag lenders expect that overall farm profitability increased in the prior year. Almost 70 percent of the lenders say the profitability largely stemmed from government support, which lenders say made up 38 percent of borrowers’ net income. Lenders expect some deterioration in conditions next year, with almost 30 percent expecting a decline in farm profitability during 2022. Lenders cited inflationary pressure as the number one concern for producers. *********************************************************************************** Ethanol Industry Says Biofuel Rollback Won’t Lower Gas Prices The ethanol industry is warning the Biden administration that pulling back the nation’s biofuel-blending rules to lower gasoline prices would be a big mistake. “We were shocked to learn that one of the potential actions reportedly being discussed at the White House is relaxing mandates to mix gasoline with biofuels,” says Renewable Fuels Association CEO Geoff Cooper. The RFA sent a letter to Brian Deese, director of the White House National Economic Council, pointing out that lowering blending requirements would lead to higher, not lower, gas prices. It would also boost tailpipe pollution tied to climate change and risk public health. Instead, the group wants the administration to focus on proposing overdue biofuel blending rules and expanding higher ethanol blends around the nation. The RFA letter says ethanol is extending the U.S. gasoline supply by nearly 1.1 million barrels per day, equivalent to the combined crude oil production of Alaska, California, Utah, and Wyoming. *********************************************************************************** USCA Joins Call for Halting Beef Imports from Brazil The United States Cattlemen’s Association joined the National Cattlemen’s Beef Association and R-CALF USA in calling for a halt to beef imports from Brazil. A USCA letter to Ag Secretary Tom Vilsack says recent reports of human remains containing BSE, or Mad Cow Disease, follow closely on the heels of an atypical case of BSE found in an older cow in Brazil. “This is especially troubling given Brazil’s history of corruption and dishonest trading practices in the global marketplace,” the letter says. “USCA is concerned more cases are waiting to get discovered.” USCA Trade Committee Chair Larry Kendig says the same concerns which prompted his group to call for a halt to Brazilian beef imports in 2017 remain today. “Put simply, Brazil is a bad actor in the global marketplace,” Kendig says. “We are gambling with the health of the domestic herd every time we accept a shipment of beef from Brazil.” *********************************************************************************** Keep Thanksgiving Free from Foodborne Illness As Thanksgiving rapidly approaches and Americans sit down for a meal, the USDA says it’s important to take steps to keep family and friends safe from foodborne illness during the holiday. “Thanksgiving is one of my favorite times to remind people about food safety,” says Ag Secretary Tom Vilsack. “I personally know how much effort it takes to prepare a full Thanksgiving meal. It’s important to follow safe practices like handwashing, using a food thermometer, and avoiding cross-contamination.” One of the best tips for food safety is making sure to wash your hands before preparing and handling food to help prevent the spread of germs. When thawing a turkey, don’t do it on a counter or in hot water; instead, do it in a refrigerator. Use a food thermometer to make sure the turkey gets to an internal temperature of 165 degrees Fahrenheit. All perishable foods should be refrigerated within two hours of being cooked.
| Rural Advocate News | Thursday November 18, 2021 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CDT, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. index of leading indicators for October will be out at 9 a.m. CST, followed by the Energy Department's natural gas storage report at 9:30 a.m. CST. Traders will be watching for any new export sales announcements and will monitor the latest weather forecasts. Weather A mature system in Ontario continues to push a cold front southeast through the eastern portions of the country on Thursday. Scattered showers are found along the front from the Delta into the eastern Midwest and these showers will continue behind the front today. Some snow showers will continue across the northern Midwest as well. Areas in the Plains remain dry, which has been hurting winter wheat establishment, especially as temperatures fall below normal at times, causing freezes.
| Rural Advocate News | Wednesday November 17, 2021 |
| Rural Advocate News | Wednesday November 17, 2021 |
Wednesday Watch List Markets A report on October U.S. housing starts is set for 7:30 a.m. CST Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m., which includes ethanol and crude oil production. As usual, traders will keep their eyes on the latest weather forecasts and watch for any news of an export sale. Weather A cold front sweeping across the country is going to develop showers along it across the eastern Midwest that will move into the Delta tonight. Showers are expected to be light but could have an impact on fieldwork. Winds behind the system remain strong in the Northern Plains and extend into the Upper Midwest and Central Plains as well. While the front is moving through the Southern Plains, very little or no precipitation is expected, furthering the dryness for winter wheat.
| Rural Advocate News | Tuesday November 16, 2021 |
President Biden Signs Infrastructure Bill President Joe Biden Monday signed the bipartisan infrastructure legislation. The more than $1 trillion plan includes $550 billion in new funding for transportation, broadband and utilities. The White House calls the legislation “a once-in-a-generation investment in our Nation’s infrastructure and competitiveness.” The legislation focuses on the needs of rural America through broadband, ports and waterways, as well as roads and bridge projects. American Farm Bureau Federation President Zippy Duvall says the investments “will ensure we continue to safely and efficiently transport the agricultural and food products that our nation and the world rely on.” The bill includes important provisions from the previously proposed Haulers of Agriculture and Livestock Safety Act. That legislation allows livestock haulers an exemption to normal trucking hours-of-service limitations if the vehicle is within 150 miles of its destination. Ahead of the signing, President Biden named Mitch Landrieu as senior advisor responsible for coordinating implementation of the legislation. *********************************************************************************** Farmland Values Surge Alongside Strength in Agriculture Agricultural credit conditions in the Federal Reserve Bank Tenth District remained strong in the third quarter, and farm real estate values increased sharply. The Kansas City Federal Reserve Bank reports farm income and loan repayment rates continued to increase at a steady pace and contributed to multi-year lows in problem loans and asset liquidation. While conditions have improved substantially from recent years throughout the region, the pace of increase in farm income and loan repayment rates was slower in areas most significantly impacted by drought. Alongside a strong agricultural economy and historically low interest rates, the value of all types of farmland was about 15 percent higher than a year ago. Most lenders have remained optimistic about the outlook for agriculture but have expressed concerns about rising input costs. The Tenth Federal Reserve District covers the states of Colorado, Kansas, Nebraska, Oklahoma, and Wyoming, 43 counties in western Missouri, and 14 counties in northern New Mexico. *********************************************************************************** Deere Workers Voting on Third Offer Union workers employed by Deere and Company vote this week on a third and final offer from Deere. The tentative agreement, announced Friday, includes modest modifications to the previous tentative agreement presented for ratification on November 2, according to United Auto Workers. UAW is presenting the ratified agreement to members for a vote and will continue the strike until an agreement is approved. Meanwhile, a recent poll by the Des Moines Register found 58 percent of Iowa adults say they mostly side with Deere workers, 16 percent of respondents say they mostly side with the employers, while 19 percent are unsure and seven percent support neither group. Union members have rejected two tentative agreements from Deere and will vote Wednesday on the latest offer. More than 10,000 workers remain on strike in Iowa, Illinois and Kansas. UAW says the offer is the “best and final” offer to the UAW negotiating team. *********************************************************************************** USDA, Interior Department Create Tribal Homelands Initiative President Joe Biden announced the Tribal Homelands Initiative during the White House Tribal Nations Summit Monday. The initiative is a partnership between the Interior Department and the Department of Agriculture. USDA says the effort will improve federal stewardship of public lands, waters, and wildlife by strengthening the role of tribal communities in federal land management. Through a joint Secretarial Order, the two departments codified a policy to facilitate agreements with tribes to collaborate in the co-stewardship of federal lands. Agriculture Secretary Tom Vilsack says, “Shared stewardship of land management is a priority for USDA, and an important part of our responsibility to tribal nations.” The Departments also committed to ensuring that all decisions relating to federal stewardship of lands, waters, and wildlife include consideration of how to safeguard the treaty, spiritual, subsistence, and cultural interests of any Indian Tribes. The order additionally directs the departments to ensure that tribal governments play an integral role in decision-making related to federal lands. *********************************************************************************** NPPC Applauds USDA Decision to Allow Faster Line Speeds The National Pork Producers Council commended the Department of Agriculture for allowing some pork packing plants to run faster line speeds. NPPC says the move could increase packing capacity and alleviate supply issues in the face of strong demand. NPPC President Jen Sorenson says, “This is particularly important now given the strong demand for pork, supply chain problems and our industry’s packing capacity constraints.” The announcement last week allows Nine plants that adopted the agency’s 2019 New Swine Inspection System to apply for a one-year trial program to use faster line speeds. The plants will collect data on the effects of line speeds on workers and share it with U.S. Occupational Safety and Health Administration. The line speed provision of the 2019 NSIS final rule was more than 20 years in the making, with six pork plants operating faster line speeds through a program begun in 1997 under the Clinton administration. *********************************************************************************** USMEF Elects New Officers The U.S. Meat Export Federation announced Mark Swanson as the new USMEF chairman, succeeding Pat Binger of Cargill Protein North America. Swanson, chief executive officer of Colorado-based Birko Corporation, heads an officer team reflecting the wide range of USMEF membership sectors. Dean Meyer, a corn, soybean and livestock producer from Iowa, is the new USMEF chair-elect, and Minnesota pork producer Randy Spronk will serve as vice-chair. The newest USMEF officer is Steve Hanson, a rancher from Nebraska. The officers were announced at the conclusion of the USMEF Strategic Planning Conference and board of directors meeting late last week. Since joining USMEF in 2008, Swanson said Birko has benefited significantly from the federation's expertise and from the contributions exports make to the growth and profitability of the U.S. red meat industry. Swanson says USMEF staff and technical knowledge is “what propels us to outpace the competition, because we're simply better at understanding the markets."
| Rural Advocate News | Tuesday November 16, 2021 |
Tuesday Watch List Markets A report on October U.S. retail sales is due out at 7:30 a.m. CST Tuesday, followed by the Federal Reserve's report on October U.S. industrial production at 8:15 a.m. USDA's Livestock, Dairy and Poultry Outlook will be released at 2 p.m. Traders will check the latest weather forecasts and watch for any news of an export sale. Weather A frontal boundary will move through the Northern Plains on Tuesday. It will be dry but breezy. Good weather conditions will continue for final harvest and fieldwork activities elsewhere. The dryness continues to be a concern for winter wheat in the Southern Plains, however.
| Rural Advocate News | Monday November 15, 2021 |
Refiners Betting on Support from Biden U.S. oil refiners are upping the ante in the battle over biofuels in an attempt to win support from the Biden administration. Reuters says they’re making moves in the biofuel credit market that may end up forcing them to close plants and fire workers if the president doesn’t bail them out from Renewable Fuel Standard requirements. The RFS requires refiners to blend biofuels into their fuel supply or buy RIN (Renewable Identification Number) credits from those that do the blending. A Reuters study says some of those refiners that had been buying a lot of credits are now building short positions in the credit market. They’re betting that President Biden will side with refiners and roll back the RFS. However, this would anger the Farm Belt, who say this is nothing but a political shakedown. Refiners know that rising fuel prices have the administration’s attention. “These refineries are daring the Biden administration to make them lay in the bed they made intentionally by running up massive short positions on biofuel credits,” says Brooke Colman, executive director of the Advanced Biofuels Business Council. A Reuters review of financial filings shows refiners that had little outstanding biofuel credit liabilities have let them climb to record highs in the third quarter of this year. *********************************************************************************** Vote on Bonnie Nomination Likely This Week The Senate Agriculture Committee approved the nomination of Robert Bonnie as the USDA Undersecretary for Farm Production and Conservation three months ago. The position is one of the most important at USDA as the undersecretary oversees the agency’s farm subsidy and land stewardship programs, which cost over $10 billion a year. The departmental scope covers public nutrition, international trade, ag research, meat safety, and rural economic development. Successful Farming says several senators placed hold actions on Bonnie for reasons mostly unrelated to the nominee. Bonnie was trained in forestry and served as an undersecretary in the Obama administration. He joined USDA as a climate advisor on the same day Joe Biden took office. Bonnie has been at the forefront of the administration’s plans to mitigate climate change. During his confirmation hearing this year, he said that actions on global warming would be voluntary, incentive-based, and locally-led. “If they don’t work for producers and landowners, they’re not going to work for the climate,” he said during his testimony. *********************************************************************************** October Ag Tractor and Combine Sales Stay Positive Overall unit sales of both ag tractors and combines continued their growth above an already-rapid pace set last year. The latest data from the Association of Equipment Manufacturers says U.S. total farm tractor sales climbed 4.8 percent in October compared to last year. U.S. self-propelled combine sales climbed 73 percent, the fourth month in a row of growth near or above 20 percent for harvesters. The under-40 horsepower segment stayed positive, growing 4.5 percent, while the mid-size 41-100 horsepower was up 4.1 percent. Heavy-duty units saw another strong month, with units over 100 horsepower up 10.3 percent. But the articulated four-wheel drive segment continued to slow in sales, down 6.3 percent. Year-to-date farm tractor sales remain up 11.4 percent and combine growth moved to 24 percent. Canadian sales were positive, with both ag tractors and combines finishing the month in the black. “We’re pleased to see ag equipment sales remain positive, despite the very real supply chain challenges,” says Curt Blades, senior vice president of agriculture services at AEM. “We remain optimistic that the positive sales trends will continue along with the ongoing strength in the ag economy.” *********************************************************************************** Grains Council, Texas Reps Promote Sorghum Overseas The U.S. Grains Council and the Texas Department of Agriculture visited Spain last week to look into export opportunities for U.S. sorghum and distiller’s dried grains with solubles in 2022. The group met with Spanish grain importers and compound feed producers during the trip. “Spain produces about 36 million metric tons of compound feed annually,” says Paige Stevenson, USGC manager of global trade. “They’re also the largest pork producer in the European Union. Spain is historically a significant buyer of U.S. sorghum, so this mission was an important one.” The USGC says the Council and Texas sorghum exporters engaged in a dialogue with their customers to help ensure that U.S. sorghum is not overlooked as the Spanish market makes its purchasing plans for the upcoming year. The mission team had one-on-one meetings with Spanish grain importers, feed producers, and hog producers. Spanish importers hold American sorghum in high regard, and the trip resulted in heightened interest in the commodity. “As a result of the trip, we immediately received follow-up calls from the Spanish industry asking for price and quality specifications,” says Stevenson. “That highlights the importance of sitting down with your customers face-to-face.” *********************************************************************************** Wheat Industry Leaders Meet in Kansas City, Talk Shipping The boards of directors for the U.S. Wheat Associates and the National Association of Wheat Growers met last week in Kansas City. Supply chain issues were one of many topics during the meetings. “Supplier delivery times have slowed dramatically, not only for manufacturers but also for service providers,” said Esther George, President and CEO of the Federal Reserve Bank of Kansas City, one of the keynote speakers. “That’s due in large part as shipping times from Asia to the West Coast have doubled, and transit costs have skyrocketed.” Daniel Whitley, USDA’s Foreign Agricultural Service Administrator, was another speaker. He talked about the long and successful public-private partnership between “cooperator” organizations like USW and FAS. He also noted the significant expected increase in U.S. agricultural exports for 2021-2022 to more than $175 billion in value, which includes an estimated $7 billion in U.S. wheat exports. Greg Borossay from the Port of San Diego previewed some expansion plans that will introduce bulk freight loading capacity, including for grains. There’s also a project in the works to create a barge service between San Diego and marine ports in central and northern California, along with Oregon and Washington state. *********************************************************************************** Lasers May Be the Future of Weed Control Carbon Robotics is working on what may be the future of weed control in agriculture. They’re building a rectangular vehicle a little smaller than a compact sedan, which rolls across farmland. While it’s moving, the vehicle shoots concentrated bursts of infrared light into the rows. Observers hear audible crackles and get the distinct smell of burning vegetation as weeds smolder next to unscathed crops. Paul Mikesell, the founder of Carbon Robotics, says the unmanned Autonomous Laser Weeder covers 15-20 acres per day and kills up to 100,000 weeds an hour. The infrared lasers shoot from beneath the vehicle’s undercarriage. There’s no manual chopping crew, no soil disturbance beyond the wheel traction, and no herbicide use, an important fact given agriculture’s push toward sustainability. “We spent almost three years designing a system that targets weeds on its own while rolling through a field,” Mikesell says. “It operated entirely on its own and separate from any human action.”
| Rural Advocate News | Monday November 15, 2021 |
Monday Watch List Markets Starting the third week of November, traders will be checking the latest weather forecasts and will hold their breath at 8 a.m. CST to see if any of the rumors of U.S. soybean sales to China get announced. USDA's weekly report of grain inspections is due out at 10 a.m. CST and will be followed by an estimate of the U.S. soybean crush in October from the National Oilseeds Processors Association. USDA's Crop Progress will give estimates of row crop harvest progress and winter wheat planting progress at 3 p.m. CST. Weather An active pattern will continue across the country for the week, but it will be a relatively quiet transition day on Monday between systems. The next system will come into the Pacific Northwest this evening with scattered showers that will extend into the Canadian Prairies.
| Rural Advocate News | Friday November 12, 2021 |
Dairy Industry to Meet Next Week Dairy Industry groups will meet next week in Las Vegas for their annual joint meeting. The National Milk Producers Federation, National Dairy Promotion and Research Board, and United Dairy Industry Association will meet November 14-17. Attendees will hear how the dairy industry groups are working to “Make Every Drop Count” for U.S. dairy farmers. Key topics and issues include sales, sustainability, nutrition policy, trade regulations, animal care, and changes in the global dairy marketplace. The national Young Cooperator program will also hold its annual session November 14-15. In addition to NMPF’s Town Hall session, the conference will feature a panel discussion of how NMPF and the national checkoff are working to defend the sustainability of real dairy products, particularly as the marketing environment in the dairy category becomes even more competitive. Another panel will discuss National Milk’s work with the U.S. Dairy Export Council to create high-value new opportunities for American dairy exports. *********************************************************************************** USMEF Conference Focuses on Booming Demand, Supply-Side Challenges The U.S. Meat Export Federation Strategic Planning Conference this week welcomed members from across the nation. The meeting covered booming demand for U.S. red meat in both established and emerging markets. USMEF President and CEO Dan Halstrom told attendees demand for U.S. red meat may be at the most robust level he has ever seen. He noted that U.S. beef exports to Japan, South Korea and China/Hong Kong are all on track to exceed $2 billion this year, and pork exports are up slightly in volume and significantly in value over last year's record pace. Total red meat export value will reach about $18 billion this year, including more than $2 billion in variety meat. This represents a rebound for variety meat exports, which took a step back in 2020. Halstrom tempered his optimism, however, due to West Coast port congestion and other transportation obstacles, as well as a persistent labor shortage and heightening regulatory burdens. *********************************************************************************** R-CALF Statement on Cattle Market Price Discovery and Transparency Bill R-CALF USA awaits the full text of the compromise Cattle Market Price Discovery and Transparency Bill to analyze the legislation. The final language of the compromise is not yet publicly available. However, reacting to the news, R-CALF CEO Bill Bullard says, “Publicly available information does not indicate the compromise bill does what we asked.” Bullard says, “We asked Congress to immediately force the dominant packers to begin competing for cattle and give consumers the opportunity to choose where they want their beef produced.” The organization will review the bill before making a final decision. Bullard says R-CALF will determine if the bill can immediately restore lost competition to the market, if it can immediately ensure timely market access for all participants, and if it treats all independent cattle producers and feeders equally. Finally, the organization wants to see if the legislation “truly rebalances the market power” between disaggregated cattle producers and the highly concentrated beef packers. *********************************************************************************** Meat Institute Announces Ambitious Climate Target The North American Meat Institute this week announced that 100 percent of its members will have delivered independently approved science-based greenhouse gas reduction targets in line with the Paris Climate Agreement goals by 2030. The Meat Institute's new targets released alongside its sustainability framework are the latest commitments launched through the Protein PACT for the People, Animals, and Climate of Tomorrow, which unites 12 leading U.S. agricultural organizations committed to taking measurable action to accelerate progress toward global development goals. Meat Institute President and CEO Julie Anna Potts comments the framework "will drive momentum and generate technical support for meatpackers and processors of all sizes to establish independently approved science-based targets to reduce greenhouse gas emissions.” The Meat Institute will support members in setting greenhouse gas reduction targets to be approved by the Science Based Targets Initiative, which independently assesses and approves companies' targets in line with its strict criteria. *********************************************************************************** National Farmers Union Announces 2022 Women's Conference National Farmers Union this week announced the 2022 Women's Conference to connect women in agriculture and provide education on business skills and innovative marketing tactics. NFU Education Director Emma Lindberg says, "This conference will not only prepare attendees for success in agriculture, but it will also provide them with their own network of women farmers and ranchers they can reach out to throughout the year." Farmers, policymakers, educators, and specialists will present on several subjects, including business management, leadership, community building, and more. The 2022 Women's Conference will be a hybrid event with virtual sessions focusing on cooperatives, business management, and food sovereignty. The Virtual event runs January 10-13, and the in-person event January 15-18 in Nashville, Tennessee. Farmers Union members are invited to attend the in-person conference, and non-members are welcome to attend the virtual conference. Find more details about the 2022 National Farmers Union Women’s Conference online at www.nfu.org. *********************************************************************************** EPA Fines Pesticide Applicator for Alleged Violations of Federal Pesticide Law The Environmental Protection Agency recently fined Nutrien Ag Solutions Inc. for allegedly applying pesticides in Kansas that were canceled by the federal government. The Colorado-based company, which sells, distributes, and applies pesticides mainly for farming operations, will pay $668,000. In 2020, EPA canceled the use of certain pesticides containing the active ingredient dicamba, in response to a Ninth Circuit Court order vacating the registration of those pesticides. The Court cited, among other things, evidence that dicamba could drift onto neighboring crops and damage them during high winds. According to EPA, Nutrien Ag Solutions violated the Federal Insecticide, Fungicide, and Rodenticide Act when it allegedly used two dicamba products in a manner inconsistent with the approved label on at least 27 occasions. Further, EPA alleged that the company violated the law on 33 occasions when it applied other dicamba products on multiple Kansas farms during periods of high wind speeds in violation of pesticide label requirements.
| Rural Advocate News | Friday November 12, 2021 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CST Friday, followed by the University of Michigan's early November index of consumer sentiment. Traders will check the latest weather forecasts and watch for any new export sales. Weather A deep low pressure system continues to spin over Minnesota, bringing in some cold and windy conditions, along with a bit of snow in the Upper Midwest. As the low moves east, showers will spread through the Eastern Corn Belt through the day but should only be light rain for the most part. The system has caused many weather issues for the remaining harvest and is not letting go just yet.
| Rural Advocate News | Thursday November 11, 2021 |
Consumer Price Index: Food Prices Higher Again in October The Consumer Price Index increased 0.9 percent in October on a seasonally adjusted basis after rising 0.4 percent in September, the Bureau of Labor Statistics reported Wednesday. Over the last 12 months, the all-items index increased 6.2 percent, the largest 12-month increase since November 1990. The food index increased 0.9 percent in October, the same increase as in September. The food at home index increased 1.0 percent over the month as all six major grocery store food group indexes continued to rise. The index for meats, poultry, fish, and eggs continued to rise sharply, increasing 1.7 percent following a 2.2-percent increase in September. The index for beef rose 3.1 percent in October. The index for other food at home rose 1.2 percent, its largest monthly increase since April 2020. The index for cereals and bakery products rose one percent, while the index for dairy rose 0.2 percent, and the index for fruits and vegetables advanced 0.1 percent. *********************************************************************************** White House: Infrastructure Deal to Improve Supply Chain A White House fact sheet released Wednesday says the bipartisan infrastructure deal will improve the supply chain. The report says the infrastructure legislation will make fundamental changes that are long overdue for ports, airports, rail and roads to ensure supply chains are more resilient and efficient from future shocks. According to some rankings, no U.S. airports rank in the top 25 of airports worldwide, and no U.S. port ranks in the top 50 ports for efficiency. The legislation invests $17 billion in port infrastructure and waterways and $25 billion in airports to address a variety of issues. Despite global disruptions due to the pandemic, The White House says America is moving record numbers of goods from ports to shelves and homes. The Ports of Long Beach and Los Angeles, which import 40 percent of all containerized imports into the country, are handling the most in their history, 17 percent more than their previous record year. *********************************************************************************** Farm Households Received Estimated $2,100 From Economic Impact Payments In 2020, U.S. family farm households received $4.3 billion in federal assistance during the Coronavirus pandemic from Economic Impact Payments. Researchers at USDA’s Economic Research Service this week say the estimated average was $924, $2,408, and $2,466 for single, head of household, and joint filers, respectively. The disparity partly reflects the lower income thresholds for single households, which resulted in some not receiving the maximum payment and others not receiving payments at all. Additionally, since unmarried people with dependents were assumed to file as head of household, these households were estimated to have received an additional $500 per dependent. Among family farm households, ERS researchers estimated that 18 percent of single filers did not receive a payment, compared with 17 percent of head of household filers, and 13 percent of joint filers in 2020. In April and May 2020, U.S. households of all types, farm or otherwise, received more than $266 billion from the program. *********************************************************************************** North American Meat Institute: Grassley-Fischer Bill Ignores Economic Fundamentals The North American Meat Institute says the Grassley-Fischer bill to improve fairness in the cattle market ignores the analysis of beef and cattle markets by the country’s leading agricultural economist. Further, the organization says the bill’s mandated government intervention will have unintended consequences that will hurt livestock producers and consumers. NAMI President Julie Anna Potts says, “In a rush to do ‘something,’ this bill would replace the free market with government mandates and harm those it is intended to protect: livestock producers.” According to one independent analysis using USDA data, since August, prices for producers have been well above the five-year average and above prices in 2020. The Cattle Price Discovery Act is seen as a compromise between lawmakers to “return fairness to the cattle marketplace dominated by four major meat packers.” North American Meat Institute members process the vast majority of U.S. beef, pork, lamb, and poultry, according to the organization. *********************************************************************************** Expect Volatile Natural Gas Prices This Winter Extreme cold in February led to lower-than-average natural gas storage levels through the summer, prompting concerns about winter weather this year and volatile natural gas prices. In its November Short-Term Energy Outlook, the U.S. Energy Information Administration estimates that U.S. natural gas storage levels had built to within three percent of the previous five-year average at the end of October. EIA Acting Administrator Steve Nalley says, “Winter temperatures will be the key driver of natural gas demand, inventories, and ultimately prices.” Despite relatively high natural gas prices, the U.S. electric power sector continues to use significant amounts of natural gas for generation. In addition, EIA estimates that U.S. natural gas exports of liquefied natural gas averaged 9.8 billion cubic feet per day in October, which is 37 percent above the October 2020 level, and essentially at capacity. U.S. natural gas exports will most likely remain close to capacity this year and in 2022 to meet demand.
| Rural Advocate News | Thursday November 11, 2021 |
Thursday Watch List Markets Thursday, November 11 is Veterans Day and there are no significant reports scheduled, but U.S. futures markets are open. Canola will not trade Thursday. Traders will check the latest weather forecasts and anticipate USDA's weekly export sales report, due out Friday morning at 7:30 a.m. CST. Special thanks to all you veterans for your service. Weather A strong system is intensifying over Minnesota early Thursday, pushing a line of moderate showers along the Mississippi River eastward through the rest of the day. The system is also increasing its winds on the backside of the system while it pulls down cold Canadian air and a batch of snow into the Northern Plains. That will cause some blowing snow, drifting, and blizzard conditions with wind gusts of 35 to 50 mph and occasionally higher into Friday.
| Rural Advocate News | Wednesday November 10, 2021 |
USDA Raises Corn Yields, Lowers Soybean Estimate The USDA released its November Crop Production and World Ag Supply and Demand Estimates this week, and the agency numbers show more corn production for 2021-2022. The corn outlook calls for greater production, increased corn use for ethanol, and marginally lower ending stocks. Corn production is forecast at 15.06 billion bushels, up 43 million from last month on a .5 bushel increase in yield to a record 177.0 bushels per acre. The season-average corn price received by producers is unchanged at $5.45 per bushel. The soybean outlook is for lower production and exports and higher ending stocks. Soybean production is forecast at 4.42 billion bushels, down 23 million on lower yields. Exports are reduced this month, reflecting reduced global imports and lower-than-expected shipments through October. The season-average soybean price is $12.10 a bushel, down 25 cents. The 2021-2022 wheat outlook calls for lower supplies, higher domestic use, reduced exports, and slightly higher ending stocks. Projected ending stocks are up slightly to 583 million bushels, up three million over last month but still the lowest ending stocks since 2007-2008. The season-average farm price is up 20 cents a bushel to $6.90. *********************************************************************************** Chinese Soybean Imports Drop to Lowest Level Since March China’s October soybean imports dropped over 41 percent lower than the same time a year ago, hitting the lowest level since March 2020. Reuters says poor crush margins curbed demand and Hurricane Ida limited U.S. shipments. The world’s biggest soybean buyer purchased 5.1 million tons of the commodity in October, compared to 8.69 million tons last year. Chinese imports also dropped from 6.8 million tons in September. In the first ten months of 2021, China bought 79.08 million tons of soybeans. China’s crushers increased their purchase earlier this year because of possible strong demand from a rapidly recovering pig herd. But demand recently dropped after pig supplies outpaced the demand, leading to plunging prices and wiping out farmers’ profits. Prices did pick up a bit in October after farmers were hit with heavy losses during the summer. Crush margins were low as recently as early September after hitting a record low in June. Margins began to improve later in September because of declining inventories. The U.S. was also hit with shipping issues as Hurricane Ida hit the Gulf Coast in early September, damaging at least three of the near dozen export terminals located along the Mississippi River between Baton Rouge, Louisiana, and the Gulf of Mexico. *********************************************************************************** Senators Announce Plan to Improve Cattle Market Fairness Republican Senators Chuck Grassley of Iowa and Deb Fischer of Nebraska joined Democrats Jon Tester of Montana and Ron Wyden of Oregon in announcing the Cattle Price Discovery and Transparency Act. The compromise cattle market bill is part of Grassley’s work to return fairness to the cattle marketplace dominated by four major meatpackers. “I frequently hear from independent cattle producers struggling to get a fair price for their cattle while the nation’s four largest packers operate in the shadows,” Grassley says. “The bill takes several steps to improve cattle price transparency and will improve market conditions for independent producers across the country.” The Senators plan to introduce the act in the coming days. Among the many changes it will make, the legislation will establish regional mandatory minimum thresholds of negotiated cash and negotiated grid trades based on each region’s 18-month average trade to enable price discovery. It would also require the USDA to create and maintain a publicly-available library of marketing contracts between packers and producers in a manner that ensures confidentiality. The proposal is endorsed by a number of state and national organizations, including the American Farm Bureau, the National Farmers Union, and many others. *********************************************************************************** USDA Awards $25 million for Conservation Innovation Projects The USDA announced its awarding $25 million to conservation partners across the country for 18 new projects under the Conservation Innovation Grants On-Farm Conservation Innovation Trials program. The On-Farm Trials’ projects support the widespread adoption and evaluation of innovative conservation approaches in partnership with farmers and ranchers. This year’s awarded projects accomplish goals like increasing the adoption of new approaches and technologies to help agricultural producers mitigate the effects of climate change, increasing the resilience of their operations, and boosting soil health. “Farmers, ranchers and forest landowners play a crucial role in charting the course towards a climate-smart future,” says Terry Cosby, Natural Resources Conservation Service boss. “On-Farm Trials enable partners to work with producers to test and adopt new climate-smart systems on their operations that support agricultural production and conserve natural resources, while also building climate resilience.” Among the many awarded projects, one is called “Climate-Smart Irrigation for Drought, Fertility, and Structural Resilience on Almond Systems,” with the study located in California. Another project in both California and Oregon will study irrigation projects for the future. Other Conservation Innovation Grants cover studies on flood irrigation water management, low-cost gravity-powered drip irrigation, enhanced efficiency fertilizers, methane emissions in dairy cattle, and many other topics. *********************************************************************************** Wet October Lifts Severe Drought in Iowa Severe drought was driven from across Iowa for the first time in over a year. A Successful Farming article says the credit for that goes to widespread rainfall in October that made it one of the wettest on record. The Iowa Department of Natural Resources says roughly five inches of rain fell around the state. Tim Hall, the DNR’s hydrology resources coordinator, says, “The widespread, above-normal rainfall during October was just what we needed in Iowa. Soaking rainfall ahead of winter’s freeze will set us up for a much better start to next year.” The U.S. Drought Monitor shows less than half the state is abnormally dry or in moderate drought. That’s a big turnaround from June when over half the state was in either severe or moderate drought. While the dry conditions had farmers concerned, some timely rains salvaged some of the crop yields. It’s the first time since July 2020 that no part of the state suffered from severe drought. Many areas in Iowa got more than double the normal amounts of rainfall. For example, Estherville picked up just over seven inches during October. The only place in the state with less-than-normal rainfall was the northeast corner. *********************************************************************************** Paper Clover Campaign Raises $1.3 Million for 4-H Tractor Supply Company announced its 2021 Fall Paper Clover Campaign raised a record-setting total of just over $1.3 million for 4-H youth around the country. Program contributions support 4-H members’ participation in camps, educational programs, and leadership experiences. All Paper Clover proceeds support 4-H youth in the state from which it was collected. A Tractor Supply Company spokesperson says, “It’s heartwarming to see how invested our communities are in supporting young people and their ability to participate in 4-H’s invaluable learning experiences.” During 11 years of partnership, Tractor Supply has raised more than $17 million for 4-H youth through their Paper Clover Fundraiser, impacting more than 120,000 students. The funds support scholarships for camps and leadership experiences for 4-H youth across the country. If someone can’t attend an in-person event, 4-H also offers 4-H at Home, Virtual Camp, and Camp in a Box. This year, Tractor Supply also donated an additional $250,000 to the 4-H Tech Changemakers Program, a new opportunity empowering young people to take control of digital literacy and economic prosperity in their community.
| Rural Advocate News | Wednesday November 10, 2021 |
Wednesday Watch List Markets At 7:30 a.m. CST Wednesday, the U.S. Labor Department returns with a report of consumer prices for October, an ongoing concern in what is gradually becoming a post-pandemic era. At 9:30 a.m., the Department of Energy will release weekly energy inventories with much attention drawn to last week's levels of ethanol and crude oil production. The U.S. Treasury reports on the October budget deficit at 1 p.m. Weather A storm system is entering the Plains Wednesday and will move eastward with a line of showers and thunderstorms into the western Midwest later in the day. Moderate rain will slow the remaining harvest but the rain is skipping over the southwestern Plains. This area is extremely dry and winter wheat conditions continue to deteriorate here.
| Rural Advocate News | Tuesday November 9, 2021 |
Ag Groups Praise Infrastructure Legislation Passage Weekend passage in the House of Representatives of the Infrastructure Investment and Jobs Act led to a slew of farm groups praising the action. The House passed the $1.2 trillion bipartisan infrastructure package, which includes $550 billion in new spending. The historic bipartisan infrastructure bill addresses the critical infrastructure needs of family farmers, ranchers, and rural communities, according to the National Farmers Union. NFU President Rob Larew responds, “The bill strengthens our food supply chain as it makes tremendous, much-needed investments in the roads, bridges, dams, and waterways that family farmers and ranchers depend on." Farm Bureau President Zippy Duvall says broadband provisions in the legislation are critical for agriculture, adding, "Investments in physical infrastructure like broadband will be critical to bridging the digital divide." For rural America, the bill includes $110 billion for roads and bridges and $65 billion to expand rural broadband. Ports and waterways will receive $17 billion. *********************************************************************************** Survey: 54% of Equipment Dealers Don’t Support Deere Strike A majority of equipment dealers don’t support striking John Deere workers, according to a recent poll from Farm Equipment Magazine. The poll found roughly 54 percent of dealers indicated they do not support the strike, while 37 percent said they did, and 8.5 percent weren't sure. Deere workers have rejected two tentative contract agreements since the strike began. UAW members voted to reject the most recent offer, with 55 percent voting against and 45 percent voting for the agreement. The results show just four of the 12 Deere facilities included voted against the tentative agreement. Following the vote, a spokesperson for Deere and Company says there will not be a third contract offer to striking union workers. Farm Equipment Magazine reports commentary from dealers who do not support the strike suggested Deere's record profits don't necessarily mean employees should see raises. Dealers that do support the strike accused Deere of prioritizing its shareholders. *********************************************************************************** Producers Still Have Time to Respond to USDA Hemp Survey It is not too late to respond to the 2021 Hemp Acreage and Production Survey, according to USDA’s National Agricultural Statistics Service. The survey collects information on the acreage, yield, production, price and value of hemp in the United States. USDA NASS said Monday, “Every response matters to ensure we have accurate data needed to inform decisions about the hemp industry.” If a survey recipient is not a current hemp producer, the recipient is encouraged to respond to a few simple questions at the beginning of the questionnaire to ensure NASS does not contact them regarding hemp in the future. The survey will set the benchmark for hemp acreage and production to assist regulatory agencies, producers, state governments, processors and other key industry entities. NASS has begun phone follow-up with survey recipients. Producers can complete their survey through phone interview, online at agcounts.usda.gov, or mailing their completed questionnaire. Results will be released in February of next year. *********************************************************************************** Red Meat Exports Remain on Record Pace Through Third Quarter Both U.S. beef and pork exports are on a record pace through September, according to the U.S. Meat Export Federation. Beef exports posted one of the best months on record in September, at 123,600 metric tons, up 20 percent from a year ago and the fourth largest volume of the post-BSE era. Export value jumped 59 percent to $954.1 million, the second-highest month on record, trailing only August 2021. For the first three quarters of 2021, beef exports increased 18 percent from a year ago to 1.08 million metric tons, valued at $7.58 billion, up more than $2 billion from the same period last year. Pork exports totaled 219,680 metric tons in September, down one percent from a year ago, but value was eight percent higher at $608.3 million. For January through September, exports were one percent above last year's record pace at 2.24 million metric tons, while value climbed nine percent to $6.23 billion. *********************************************************************************** Most U.S. Counties Exempt Groceries from Sales Taxes Foods purchased at grocery stores were exempt from sales taxes in 57 percent of U.S. counties in 2019, according to new data from USDA’s Economic Research Service. Using county-level tax data in combination with the USDA’s National Household Food Acquisition and Purchase Survey, researchers at USDA recently examined whether grocery taxes are associated with how much money U.S. households spend on food at retail outlets and restaurants. USDA-ERS found that grocery taxes were associated with differences in food spending among lower-income households that were eligible for the Supplemental Nutrition Assistance Program but did not participate in it. Among those households, researchers were able to associate taxes on groceries with reduced food spending at retail stores and increased food spending at restaurants. However, Federal law and USDA regulations stipulate that foods purchased with SNAP benefits are exempt from state and local sales taxes, and no such relationship was found among households participating in SNAP. *********************************************************************************** University of Missouri to Launch Mobile Meat Processing Training The University of Missouri's College of Agriculture, Food and Natural Resources will provide mobile meat processing training next year. The university will send two mobile meat processing training centers throughout the state as part of a pilot program to address the labor shortages within the meat processing industry. The Missouri Department of Agriculture provides funding for the effort through its Meat and Poultry Processing Grant Program. Organizers describe one of the mobile units as a 'hot dog plant on wheels.' The training center is designed to teach meat processing skills. The other will be set up as a mobile retail storefront with a point-of-sales system. That unit will be used to provide training on retail sales and marketing of products. The mobile centers will be self-contained units and will be used throughout the state as small processing plants don't always have time to train employees. They will also teach consumer relations, managing budgets, inventory management and marketing.
| Rural Advocate News | Tuesday November 9, 2021 |
Tuesday Watch List Markets At 7:30 a.m. CST Tuesday, the U.S. Labor Department will release the producer price index for October, a topic on many investors' minds. At 11 a.m., USDA will release its WASDE and Crop Production reports for November with all eyes on the corn and soybean crop estimates. Traders will watch for any export sales news and any surprises in USDA's reports. Weather A storm system is moving into the western states on Tuesday with scattered showers that may be at least partially beneficial for winter wheat in the Pacific Northwest. Mostly fair weather is expected east of the Rockies that should favor the remaining harvest.
| Rural Advocate News | Monday November 8, 2021 |
Governors Explore Ways for States to Expand Biofuel Sales A bipartisan group of governors asked the Biden administration for guidance on an action that could expand fuel sales containing a higher ethanol blend. The letter was sent following action by an appeals court that struck down a 2019 ruling that allowed year-round sales of E15. Reuters says farm and biofuel groups were angered by the ruling after spending a lot of time advocating for year-round sales which boosted demand for their products. The seven governors point out that a section of the Clean Air Act allows governors to effectively request from the EPA that E15 be sold in their state year-round. “In the wake of the court decision, we are exploring all our options to ensure retailers can sell E15 to consumers all year long without interruption,” the group says in their letter. Groups like the Iowa Renewable Fuels Association and the national Renewable Fuels Association were grateful for the letter. “We all hope either Congress or the EPA will take action to preserve year-round access to E15 across the country,” says Iowa Renewable Fuels Association President Monte Shaw. “But if no timely solution can be found, governors have the authority to implement solutions state-by-state.” *********************************************************************************** USDA Emphasizes Commitment to Climate at COP26 USDA Secretary Tom Vilsack attended the 26th United Nations Climate Change Conference in Glasgow, Scotland. He emphasized USDA’s support for President Biden’s whole of government approach to combatting climate change, creating good jobs, and economic growth in the U.S. During the conference at various events, he highlighted USDA partnerships and initiatives that put agriculture, forestry, and rural communities at the center of global solutions to climate change. “Climate change is happening,” Vilsack says. “It threatens to disrupt our food systems, worsen food insecurity, and negatively impact the livelihoods of our agricultural producers. Now is the time to address this.” Vilsack also told conference attendees that the U.S. can lead the way with investments in climate-smart solutions that improve the profitability and resilience of agricultural producers and improve forest health while creating new income opportunities and building wealth that stays in rural communities. Vilsack touched on several topics, including building support for the Agriculture Innovation Mission for Climate Initiative launched last week. He also highlighted the Climate Smart Agriculture and Forestry Partnership Initiative, as well as the USDA-supported Pathways to Dairy Net-Zero. *********************************************************************************** Supply Chain Holes Will Take Time to Fill Supply chain issues are challenging the agricultural sector, and farmers and ranchers hoping for quick solutions may be out of luck. DTN says a House Ag Committee hearing focused on transportation problems that are slowing the export of goods and commodities across the U.S. and the world. The Associated Press reports a significant backlog of ships entering U.S. waters out west and fewer ships making a voyage back across the ocean as a big reason that U.S. exports have slowed down. Gregg Doud, a former USTR Chief Ag Trade Negotiator, says the logistical problems aren’t going to get solved soon. “So much of the U.S. ag exports are in containers, so the lack of containers heading back across the ocean is significant,” Doud says. “80 percent of what leaves the Port of Tacoma, Washington, goes out on backhaul or as agricultural products to Asia. Right now, the shipping industry would much rather speed up the process and get those empty containers back to Asia without reloading first.” Ted McKinney, a former USDA Undersecretary, says COVID played a big part in the problem but not the only one. “When China can order empty containers to come back and then pay for it, I’ll bet you the industry isn’t the one that’s paying the bill for the empty containers to return,” McKinney says. *********************************************************************************** Conner Disappointed with OSHA Vaccine Mandate Exemptions The Occupational Safety and Health Administration released exemptions to the mandatory COVID-19 vaccine mandate for large, private employers. The Hagstrom Report says the mandate won’t take effect until January 4 and goes into effect after harvest season. Chuck Conner, president of the National Council of Farmer Cooperatives, says he’s still disappointed that the exemptions didn’t include other accommodations. “I’m disappointed that OSHA’s exemptions don’t adopt several commonsense accommodations to recognize the unique nature of agriculture,” Conner says. “The deadline does take farmers past harvest and does exempt employees working exclusively outdoors. However, implementing this standard will be disruptive and it contains no provisions included to help ensure the integrity of the food and agriculture supply chain.” He also points out that NCFC will provide formal comments to OSHA outlining their concerns further and will work with members to look for ways to minimize the disruptions the requirements will cause to a critical sector of the U.S. economy. *********************************************************************************** New Leadership Program Designed to Help Animal Agriculture Emerging leaders in agriculture have a new opportunity to get next-level leadership and professional development training specifically focusing on animal agriculture. It’s called Advanced Training for Animal Agriculture Leaders, a program created and sponsored by the United Soybean Board and the National Institute for Animal Agriculture. It’s designed to empower professionals in the early or middle part of their careers to build on previous leadership development experiences and collaborate with peers across the industry. “Advanced Training for Animal Agriculture Leaders is a win for program participants and a win for the animal agriculture industry,” says J.J. Jones, NIAA executive director. “Developed as a 2.0 leadership experience, the program will not only give participants world-class hands-on training but also put their training into practice.” Jones also says it’s a chance to create meaningful connections with one another and advance real solutions to real animal agricultural challenges. The 16-month program focuses on four areas of development: critical thinking, leadership development, connecting and relating skills, and operational excellence. *********************************************************************************** Export Sales of Corn, Wheat, and Soybeans Rise The USDA says export sales were higher across the board during the week ending on October 28. Corn sales in those seven days totaled 1.22 million metric tons, up 37 percent over the previous week and 10 percent higher than the prior four-week average. Mexico was the biggest buyer at 666,300 metric tons, while Japan and Guatemala finished out the top three. Exports for the week totaled 748,500 metric tons, nine percent higher week-to-week. Soybean sales last week totaled 1.86 million metric tons, a 58 percent increase from the previous week and 19 percent higher than the prior four-week average. China once again led the way by purchasing 1.21 million metric tons, while Mexico was a distant second at 157,400 tons. Soybean exports rose 10 percent during the week to 2.65 million metric tons. Wheat sales came in at just over 400,000 metric tons, 49 percent higher than the previous week and four percent above the prior four-week average. Mexico was the top wheat buyer at 101,400 metric tons. Wheat exports fell 27 percent to 136,400 metric tons during the week.
| Rural Advocate News | Monday November 8, 2021 |
Monday Watch List Markets After changing clocks over the weekend, traders will begin the second week of November with many of the same rituals, checking the latest weather forecasts and pausing at 8 a.m. CST to see if USDA has an export sale announcement. USDA's weekly report of grain inspections is due out at 10 a.m., followed by Crop Progress at 3 p.m. Weather Relatively dry conditions across the majority of the country on Monday will help producers advance through the remaining harvest. Hot and dry conditions across the southwestern Plains are drying out soil moisture for winter wheat establishment.
| Rural Advocate News | Friday November 5, 2021 |
World Food Prices Reach New Peak since July 2011 The world food price barometer surged to a new peak reaching its highest level since July 2011. The Food and Agriculture Organization of the United Nations released its monthly report Thursday, which tracks changes in the international prices of a basket of food commodities. The FAO Food Price Index averaged 133.2 points in October, up three percent from September, rising for a third consecutive month. Cereal grain prices increased 3.2 percent from last month, and vegetable oil prices were up 9.6 percent, an all-time high. Meanwhile, dairy prices increased 2.6 percent, influenced by generally firmer global import demand. Meat prices declined 0.7 percent, the third monthly decline, and sugar prices fell 1.8 percent in September, the first decline in six months. Despite an expected record world cereal production in 2021, global cereal inventories are seen heading for a contraction in 2021/22. The forecast for world cereal output in 2021 is now pegged at 2,793 million metric tons, down by 6.7 million tons since the previous report in October. *********************************************************************************** USDA Builds Pandemic Support for Certified and Transitioning Organic Operations The Department of Agriculture Thursday announced pandemic assistance to cover certification and education expenses to certified organic producers or transitioning to organic. USDA will make $20 million available through the new Organic and Transitional Education and Certification Program. During the COVID-19 pandemic, certified organic and transitional operations faced challenges due to loss of markets, and increased costs and labor shortages, in addition to costs related to obtaining or renewing their organic certification, which producers and handlers of conventionally grown commodities do not incur. Certified operations and transitional operations may apply for funding for eligible expenses paid during the 2020, 2021 and 2022 fiscal years. For each year, the program covers 25 percent of a certified operation’s eligible certification expenses, up to $250 per certification. Crop and livestock operations transitioning to organic production may be eligible for 75 percent of a transitional operation’s eligible expenses, up to $750, for each year. Signup for 2020 and 2021 will begin November 8, 2021. *********************************************************************************** Senate Ag Committee Advances CFTC Chair Nomination The Senate Agriculture Committee Thursday advanced the nomination of Rostin Behnam as Chairman and Commissioner of the Commodity Futures Trading Commission. Behnam has served as a Commissioner on the CFTC for the past four years and was nominated for a second term earlier this year. Committee Chair Debbie Stabenow, a Democrat from Michigan, says, “As we navigate what the future of financial markets looks like for farmers, families, and small businesses, I know we can trust Chairman Behnam’s leadership and expertise to protect our economy.” Behnam previously served as senior counsel to Senator Stabenow and the Senate Agriculture Committee. Ranking committee member John Bozeman, an Arkansas Republican, adds, “Behnam has proven himself to be a capable leader during his tenure as acting chairman of the CFTC.” The Committee held a hearing on the nomination of Behnam late last month. Benham was nominated to the CFTC in July of 2017 by then President Donald Trump. *********************************************************************************** Deere Claims No Third Proposal Coming in Negotiations A spokesperson for Deere and Company says there will not be a third contract offer to striking union workers. The UAW John Deere members voted to reject the second proposal from Deere this week, leaving more than 10,000 workers on strike. In a company statement, Deere says, “With the rejection of the agreement covering our Midwest facilities, we will execute the next phase of our Customer Service Continuation Plan." A company spokesperson also told WQAD-TV in Moline, Illinois, "I think one of the things that the bargaining committee for Deere is making clear is that this is the best, last and final offer.” UAW members voted to reject the offer, with 55 percent voting against and 45 percent voting for the agreement. The results show just four of the 12 Deere facilities included voted against the tentative agreement. Deere would have provided an immediate ten percent wage increase, and 30 percent wage increase over the term of the six-year contract. *********************************************************************************** Report: U.S. Animal Protein Needs Trade Negotiators Back at the Table A report from CoBank shows animal agriculture needs trade negotiators at the table to build export markets. The report says the recent nomination of a chief agriculture negotiator with the Office of the U.S. Trade Representative is an important step forward. However, Elaine Trevino has yet to be confirmed by the Senate. U.S. animal protein exports have grown from $7.4 billion to $20.7 billion in the past two decades, driven by industry marketing and government trade negotiations. Today, trade accounts for 10-30 percent of U.S. animal protein production, depending on the industry segment. The Trump administration's harder line on trade, continued by the current administration, has led to mixed results for U.S. agriculture. Ag exports to China have flourished under the Phase One agreement, but the U.S. withdrawal from the Trans-Pacific Partnership cost U.S. exporters some opportunities. The report adds diversification of markets and products is vital for a vibrant U.S. protein export trade. Successful trade also depends on maintaining commitments with long-established partners, as seen with Mexico, Canada, Japan, and others. *********************************************************************************** Farmer-led RIPE Expands Steering Committee with Two New Members Rural Investment to Protect our Environment, known as RIPE, recently added two highly respected Farmers Unions to its steering committee. The organization announced Thursday that Minnesota Farmers Union’s Eunice Biel and North Dakota Farmers Union’s Matt Perdue joined the committee. RIPE is described as a farmer-led nonprofit advancing a national bipartisan, comprehensive climate policy that invests in voluntary agricultural stewardship practices that provide a reasonable return to farmers and the public. Through $100 per acre payments, the RIPE100 plan would reward farmers for the total public value of their conservation practices, including no-till, cover crops and more. In addition to carbon sequestration, the voluntary federal program would pay for improved soil health, cleaner water, biodiversity and other environmental services. Payments would also help farmers manage rising input costs, such as fertilizer, due to climate policy, while giving them a reasonable return. RIPE’s steering committee advises the policy design plan and makes recommendations on other opportunities that support the organization’s mission.
| Rural Advocate News | Friday November 5, 2021 |
Friday Watch List Markets The U.S. Labor Department will have reports on nonfarm payrolls and the unemployment rate for October at 7:30 a.m. CDT. Traders will check the latest weather forecasts and watch for any news of export sales. A report on U.S. consumer credit in September is due out at 2 p.m. Weather A system in the Gulf of Mexico will move across Florida on Friday. This will bring moderate to heavy showers to portions of the Southeast through Saturday with some disruption to the cotton harvest. Otherwise, mild and dry weather will continue across almost all areas east of the Rocky Mountains with good harvest conditions going through the weekend.
| Rural Advocate News | Thursday November 4, 2021 |
2021 Farm Service Agency County Committee Elections Underway The Department of Agriculture is mailing ballots this week for the Farm Service Agency county and urban county committee elections. Elections are occurring in certain Local Administrative Areas for committee members who make decisions about how federal farm programs are administered locally. To be counted, producers and landowners must return ballots to their local FSA county office or be postmarked by December 6, 2021. FSA Administrator Zach Ducheneaux (DOO-shah-no), says, "These committees are a critical piece to the work we do by providing knowledge and judgment as decisions are made about the services we provide." Producers must participate or cooperate in an FSA program to vote in the county committee election. Each committee has from three to 11 elected members who serve three-year terms of office, and at least one seat representing a Local Administrative Areas is up for election each year. Newly elected committee members will take office January 1, 2022. *********************************************************************************** Deere Workers Reject Deal, Continue Strike Deere and Company employees this week again rejected a tentative contract agreement. By a vote of 45 percent yes to 55 percent no, United Auto Workers John Deere members voted down the agreement Tuesday night. UAW says the strike will continue as they discuss next steps with the company. This is the second tentative contract agreement rejected by Deere workers during the strike. The latest contract would have provided a ten percent rise in wages this year, five percent in 2023 and 2025, and lumpsum bonuses amounting to three percent of their pay for 2022, 2024 and 2026, according to Reuters. Deere would have invested another $3.5 billion in its employees, per the terms of the rejected agreement. More than 10,000 Deere employees in Illinois, Iowa and Kansas remain on strike. This is the first strike against the Illinois-based company by the UAW since 1986, which lasted 163 days. *********************************************************************************** Iowa Senators Call for Increase in Eligibility for Commercial Driver’s Licenses Iowa’s U.S. Senators are calling for more Americans to be eligible to obtain a commercial driver’s license, known as a CDL, to operate commercial motor vehicles in interstate commerce. Republicans Chuck Grassley and Joni Ernst penned a letter this week to the Federal Motor Carrier Safety Administration on the issue. They asked the agency to allow persons 18 years of age and older to obtain a commercial driver’s license. Current federal regulations maintain a minimum age of 21 for interstate travel. The lawmakers say the change can help reduce supply chain issues, stating, “The truck driver shortage, coupled with the nation’s ongoing supply chain issues, has been extremely detrimental to the economy.” The letter follows the introduction of a bill this week to reduce red tape for farmers and ranchers to travel across state lines, The Covered Farm Vehicle Modernization Act, which changes weight rating exemptions for farm vehicles. *********************************************************************************** ASA and NBB Express Concerns Over Supply Chain The House Agriculture Committee heard from farm groups on challenges to the supply chain during a hearing Wednesday. The American Soybean Association and National Biodiesel Board also expressed concerns over labor and shipping, but say there is plenty of soy oil supplies for the food sector. ASA and NBB say food industry groups have waged claims that there’s a crunch on the supply of soy oil available when soy is crushed, and that foodservice cannot get enough edible oil for cooking because, those groups say, oil is being diverted to biodiesel and a growing renewable diesel market. ASA President Kevin Scott says, “There is currently not a soy oil supply shortage, nor is one envisioned by year-end, but there are in fact very real supply chain challenges impacting U.S. agriculture.” Those concerns include labor, barge shipments, ports and shipping containers, trucking and rail freight, fertilizer, chemical inputs, energy, equipment and parts, and water availability. *********************************************************************************** Supply Chain Crisis Could Permanently Harm U.S. Agriculture The current supply chain crisis could cause “irreparable harm” to agriculture. Leprino Foods President and CEO Mike Durkin told the House Agriculture Committee Wednesday, “This export crisis may well result in irreparable harm to American agriculture as customers around the world are questioning the U.S. dairy industry’s reliability as a supplier.” The U.S. Dairy Export Council and National Milk Producers Federation voiced strong support for Durkin’s call for U.S. government action to more effectively tackle the shipping crisis and its effects on dairy farmers and manufacturers. Durkin called on Congress to act on ocean shipping legislation, address critical transport-industry labor shortages, increase port hours of operation, and take other steps to help American agriculture producers reach their foreign markets effectively. Across the industry, approximately one day’s worth of U.S. milk production each week goes to exports, which results in about $6.5 billion in U.S. dairy products being exported to over 133 countries. *********************************************************************************** CNH Industrial Announces agreement with Electric Tractor Company CNH Industrial this week announced an agreement with Monarch tractor, a U.S.-based company specializing in electric autonomous tractors. The license agreement foresees the launch of a scalable, modular electrification platform focusing on low horsepower tractors. The tractors will be developed across multiple product families in the coming years, using a process that continuously gathers farmers' input to meet customer needs. This agreement also is part of CNH Industrial's commitment to decarbonizing agriculture through alternative propulsion systems. CNH Industrial CEO Scott Wine says, “We are confident that the new pathways provided by Monarch will rapidly strengthen our competitive position in sustainable precision farming.” Wine adds the partnership enables CNH Industrial to enhance its internal electrification capabilities and develop and implement new electrified platforms faster. CNH Industrial is the parent company for Case IH, New Holland Agriculture and Steyr, among others. Monarch Tractor, headquartered in Livermore, California, provides in-field electrification, automation, and data technologies through its all-electric, driver-optional Monarch Tractor.
| Rural Advocate News | Thursday November 4, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, along with weekly U.S. jobless claims, a report of U.S. productivity in the third quarter, the September trade deficit and an update of the U.S. Drought Monitor. The Energy Department's report on natural gas storage is due out at 9:30 a.m. CDT. Weather A dome of high pressure will keep much of the country mild and dry on Thursday, though temperatures are moderating from where they were earlier this week in the Plains. Showers will move through the Pacific Northwest as another wave of moisture is pushed through the region from a trough that continues to spin over the Pacific.
| Rural Advocate News | Wednesday November 3, 2021 |
Launching Agriculture Innovation Mission for Climate The United States and United Arab Emirates Tuesday launched the Agriculture Innovation Mission for Climate alongside 31 countries and 48 non-government partners. Known as AIM for Climate, the mission was announced during the 26th United Nations Climate Change Conference. President Biden announced that the United States intends to mobilize $1 billion in investment in climate-smart agriculture and food systems innovation over five years. The effort focuses on enabling greater public-private and cross-sectoral partnerships to raise global climate ambition and underpin transformative climate action in agriculture. The U.S. Department of Agriculture says AIM for Climate has already begun to bear fruit, garnering an “early harvest” of $4 billion in increased investment in climate-smart agriculture and food systems innovation. Climate-smart agriculture is an approach that helps to guide actions needed to transform and reorient agricultural systems to tackle three main objectives. Those are sustainably increasing agricultural productivity and incomes, adapting and building resilience to climate change and reducing greenhouse gas emissions. *********************************************************************************** Ag Economy Barometer: Farmer Sentiment Weakens For the third month in a row, agricultural producer sentiment weakened in October. The Ag Economy Barometer declined to 121, three points lower than a month earlier. The modest decline occurred as a result of producers’ weaker perceptions regarding both current and future conditions in the production agriculture sector. Recent weakness in farmer sentiment appears to be driven by a wide variety of issues, with concerns about input price rises topping the list. The Farm Capital Investment Index remains weak, in large part because of supply chain problems as four out of ten respondents said tight machinery inventories were holding back their purchasing plans. Despite the weak overall sentiment expressed by producers, they remain optimistic about farmland values, both in the upcoming year and over the next five years. The Purdue University-CME Group Ag Economy Barometer index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. *********************************************************************************** Barchart Forecasts Slight Production Increase for US Corn and Soybeans Agricultural technology and data firm Barchart released its final 2021 U.S. corn and soybean production estimates this week. The latest report indicates a slight increase in U.S. crop production and yield for corn and soybean, while Canadian production forecasts remain relatively unchanged over the past month. Barchart’s U.S. corn production forecast is 15.4 billion bushels, compared to the Department of Agriculture forecast of 15.0 billion bushels. The average corn yield is pegged at 182.2 bushels an acre, compared to USDA's 176.5. Soybean production, projected at 4.5 billion bushels, is slightly higher than USDA's 4.4 billion bushels. Barchart predicts average soybean yield at 51.4 bushels an acre, compared to USDA’s 51.5. Meanwhile, the report predicts Canadian spring wheat production at 746.4 million bushels, with an average yield of 46.3 bushels per acre. Finally, Canadian soybean production is estimated to be 223.1 million bushels, with an average yield of 42.2 bushels per acre. *********************************************************************************** Growth Energy Submits Notice of Intent to Sue EPA Over Biofuel Delays Growth Energy submitted to the Environmental Protection Agency a notice of intent to sue regarding its failure to timely fulfill the agency’s statutory obligation. The notice sent Tuesday focuses on EPA’s delay in issuing the 2022 Renewable Volume Obligation under the Renewable Fuel Standard. The RVOs for 2022 are due by November 30, 2021, an annual deadline set by Congress in the RFS. However, with less than a month to go, EPA has not issued a notice of proposed rulemaking to establish the obligations. The Growth Energy notice gives EPA 60 days to issue the 2022 RVO before risking a lawsuit in federal court. Growth Energy CEO Emily Skor says, “It is critical for EPA to issue these RVOs as soon as possible.” Growth Energy claims failure to issue RVOs on time undermines the RFS by eliminating prospective, market-forcing blending obligations, and by creating uncertainty in the market for obligated parties and renewable fuels producers. *********************************************************************************** Most US Congressional Districts’ Exports to China Bounced Back in 2020 U.S. goods exports to China surged last year by $18.5 billion, almost 18 percent over 2019. The surge follows near-decade lows in U.S.-China trade in 2019 and the conclusion of the U.S.-China Phase One trade agreement in January 2020, according to a study released Tuesday by the U.S.-China Business Council. The study found 64 percent of U.S. congressional districts exported more goods to China in 2020 compared to the year prior, and 72 districts increased their exports by more than $100 million. The increase was particularly sharp in the farming communities of the Midwest, oil-exporting regions in Texas and Louisiana, and Oregon’s semiconductor hub. When it comes to services exports to China, the data for which lag a year behind, most districts saw lower numbers in 2019 than they had seen in 2018. The U.S.-China Business Council is a non-partisan trade association representing more than 260 US companies that do business with China from a wide range of industries. *********************************************************************************** Legislation Seeks to Remove Red Tape Surrounding Farm Vehicles Senate lawmakers Tuesday introduced the Covered Farm Vehicle Modernization Act. The legislation expands and modernizes the exemptions for Covered Farm Vehicles to reflect the variety of vehicles commonly used by today’s farmers and ranchers. The bill adjusts exemption thresholds and removes the extra regulatory red tape regarding Department of Transportation registration and fuel tax licensing requirements that have little to do with vehicle safety, according to lawmakers. Senate Republican Roger Marshall of Kansas introduced the bill with Georgia Democrat Jon Ossoff. Marshall says the legislation “ultimately allows folks to legally pull a gooseneck trailer with their pickup truck without jumping through hoops to obtain a for-hire commercial driving license.” The bill expands exemptions for Covered Farm Vehicles to allow farm vehicles with a gross vehicle weight or Gross Vehicle Weight Rating under 36,001 pounds to travel across state lines with the same exemptions currently granted to farm vehicles under 26,001 pounds.
| Rural Advocate News | Wednesday November 3, 2021 |
Wednesday Watch List Markets Wednesday's reports start with ADP's estimate of private sector job growth at 7:15, a.m. CDT, a possible hint of Friday's unemployment report. September factory orders are out at 9 a.m., followed by the Energy Department's weekly inventory report, including ethanol production at 9:30 a.m. CDT. The Federal Reserve's post-meeting announcement will be released at 1 p.m. CDT and is expected to mention a reduction of monthly bond purchases. Weather A dome of cold high pressure continues to build across the eastern half of the country. Widespread frosts and freezes are occurring across much of the Plains through the Midwest. Showers across the Southern Plains and Delta will drift southward and the rainfall will be good for winter wheat establishment where it occurs.
| Rural Advocate News | Tuesday November 2, 2021 |
USDA Provides $1.8 Billion to Offset Market Fluctuations The Department of Agriculture is in the process of issuing $1.8 billion in payments to agricultural producers. The funds are for farmers enrolled in the Agriculture Risk Coverage and Price Loss Coverage programs for the 2020 crop year. The payments provide support to help mitigate fluctuations in either revenue or prices for certain crops. These two USDA safety-net programs help producers of certain crops after facing the impacts of COVID-19 and other challenges. FSA Administrator Zach Ducheneaux (DOO-shah-no) says, “these programs provide stability when markets are volatile, making a big difference in the lives of farm families across the country.” Additionally, USDA's Farm Service Agency encourages producers to contact their local USDA Service Centers to make or change elections and enroll for 2022 ARC or PLC. The election and enrollment period runs through March 15, 2022. If an election is not submitted by the deadline, the election remains the same as the 2021 election. *********************************************************************************** Tariff Agreement with EU Reopens Doors for US Agriculture Exports The United States and European Union Sunday announced an end to the trade conflict of steel and aluminum tariffs, welcome news for agriculture. The United States will not apply section 232 duties and will allow duty-free importation of steel and aluminum from the EU at a historical-based volume, and the EU will suspend related tariffs on U.S. products. They will also consider reducing carbon in the steel and aluminum supply chain as part of the agreement, including greater incentives to reduce carbon across steel and aluminum production. The U.S. Trade Representative's Office states the global arrangement reflects a joint commitment to use trade policy to confront the threats of climate change and global market distortion. American Farm Bureau Federation President Zippy Duvall called the agreement welcome news, adding, "farmers were swept up in the turmoil as the EU clamped down on U.S. agricultural exports like orange juice, butter, cheese, pork, nuts and many more." *********************************************************************************** Deere, UAW, Reach Tentative Agreement Deere & Co and United Auto Workers International reached a tentative new contract. The agreement could lead to the end of a worker strike. The deal was announced over the weekend, but needs to be approved by UAW members first. Chuck Browning, UAW Vice President and Director of the Agricultural Implement Department, says the agreement contains enhanced economic gains and provides the highest quality healthcare benefits in the industry. Browning adds, "The negotiators focused on improving the areas of concern identified by our members during our last ratification process." The UAW will not release details of the tentative agreement until members at all John Deere locations have an opportunity to meet and review the terms of their proposed contract. It's unclear when the vote will be completed, and the more than 10,000 Deere employees will remain on strike until the vote is concluded. UAW members overwhelmingly rejected the first tentative agreement announced last month. *********************************************************************************** Dairy Producers Asked to Participate in FMMO Class I Pricing Method Poll American Dairy Coalition invites dairy producers to participate in a short poll on the Federal Milk Marketing Order Class I pricing method. Coalition CEO Laurie Fisher says, "This poll gives dairy producers the opportunity to show how the Class I pricing change affects them in terms of planning and risk management and to give their preference." The ADC board, along with several state and regional dairy organizations, have publicly supported the idea of asking Congress to legislatively return to the previous Class I skim pricing method of using the 'higher of' Class III or IV advance skim pricing factors until an FMMO hearing process thoroughly evaluates proposals. The Upside benefit of the new method is 74 cents on Class I, which is around 20 cents on the blend price nationally, but at the same time, there is no limit to the downside risk if market disruptions push Class III and IV apart by more than $1.48 per hundredweight. Find the pole online. *********************************************************************************** Frozen Turkey Inventories 24% Below 3-year Average Remembering to defrost the turkey might not be the only challenge families face as they try to get that perennial centerpiece onto the Thanksgiving table this year. As of August 31, 2021, inventories of frozen whole turkeys and turkey parts were 24 percent lower than three-year average volumes, according to USDA’s Economic Research Service. Stocks of frozen turkey meat typically follow a seasonal pattern, building throughout the year until the fall, when retailers prepare to meet holiday demand. In 2021, the seasonal build-up was less pronounced than usual, and stock volumes appear to have peaked before starting an earlier-than-normal decline. At the end of August 2021, 428.1 million pounds of turkey meat were in cold storage, a 19-percent decrease from the same month last year, and a decline of about seven million pounds from the end of July 2021. Stocks are lower partly because production of turkeys is lower than average this year. *********************************************************************************** New Promotional Opportunity for Agritourism Venues The American Farm Bureau Foundation for Agriculture is looking for orchards, pumpkin patches, corn mazes and more to showcase on a new app. The American Farm trail app is dedicated to connecting consumers with agritourism venues. Created by the Farm Bureau Foundation and sponsored by Corteva, the app allows farmers, ranchers and farm attraction managers to sign up for free to showcase their agritourism venues. Farms and attractions can create a profile promoting their business, history, available products and more. Consumers using the app will be able to connect directly with local farms by searching area, type of attraction, or products for sale. The Foundation plans to launch the app in the spring of 2022. Resources are available to farmers interested in listing their farm on the app, including a video overview of the app and a how-to guide for filling out the attraction listing information. Learn more at agfoundation.org.
| Rural Advocate News | Tuesday November 2, 2021 |
Tuesday Watch List Markets There are no official reports on Tuesday's docket. Traders will consider the findings from Monday afternoon's Crop Progress report, check the latest forecasts and watch for any sign of an export sale. The Federal Reserve starts a two-day meeting and will have an announcement out Wednesday afternoon. Weather A frontal boundary continues to sag south through the country on Tuesday. A system forming along the front will bring scattered showers to the Southern Plains through Wednesday, while continuing to bring down the coldest temperatures of the season so far. Widespread frosts and freezes will continue to impact a majority of the country's growing regions, slowing growth on winter wheat.
| Rural Advocate News | Monday November 1, 2021 |
Tai: Reduce Tensions Between U.S. and China U.S. Trade Representative Katherine Tai spoke during a recent meeting of the National Chicken Council and discussed the relationship between the U.S. and China. She says her recent interactions with China were intended to bring down the temperature of a trading relationship that’s become heated in recent months. Tai describes the relationship between the two largest economies in the world as “a pile of dry tinder.” She also says that any potential misunderstanding between the countries is likely to spark a giant fire that could have drastic effects on both nations and the world’s economy. U.S. News Dot Com says Tai recently took part in a phone call with the Chinese Vice Premier to talk about China’s failure to live up to the Phase 1 trade agreement with the U.S reached under former President Trump. U.S. officials looked at the phone call as a test of the bilateral relationship between the nations, and Chinese officials used the call to press Tai to eliminate tariffs in place on imported goods from the Asian nation. “China has a huge market and population, and they all need to be fed,” Tai says. “China needs ag imports, and that is something we can supply.” *********************************************************************************** Reaction to the Build Back Better Bill Framework Released Last Week Ag Secretary Tom Vilsack issued an endorsement of the framework for President Biden’s Build Back Better Act that was announced last week. Vilsack says to create millions of good-paying jobs, grow the economy, build American competitiveness, and secure the future of American children, then the U.S. must invest in the human infrastructure of the nation, which is America’s working families. “The Build Back Better framework is the largest effort in American history to combat the climate crisis while spurring economic opportunity with innovation and good jobs here at home, better positioning us to compete globally,” Vilsack says. Senate Ag Chair Debbie Stabenow says, “The bill scales up climate-smart agriculture programs that farmers, foresters, and rural businesses use to protect resources and be more energy-efficient.” National Farmers Union President Rob Larew says the agreement is a tremendous step toward addressing many of the challenges facing the nation. “Family farmers and ranchers are an essential part of the climate solution,” Larew says. “We’re pleased the framework invests in programs to help accelerate the implementation of climate-smart practices on farms and ranches and demonstrates support for biofuels.” Larew also says this effort will help to make farms more resilient in the face of extreme weather events or other natural disasters made worse by climate change. *********************************************************************************** Build Back Better Framework Contains $1 Billion for Biofuels Growth Energy CEO Emily Skor thanks President Biden and leaders in Congress for including $1 billion in biofuels infrastructure investments in the proposed Build Back Better budget reconciliation framework. Skor says President Biden’s proposal to invest $1 billion in biofuels infrastructure is a welcome acknowledgment from this administration that access to higher blends of biofuels at the pump makes a real difference in decarbonizing transportation. “Recent research shows that a nationwide E15 standard would reduce carbon emissions by more than 17 million tons, which is the equivalent of taking almost four million cars off the road each year,” Skor says. “Investing in fuel infrastructure that allows more American drivers to fill up on low-carbon biofuel blends, like E15, is crucial to helping our nation. Achieve clean energy goals today.” Ag Secretary Tom Vilsack says rural America will benefit from meaningful investments to help pave the way in clean and renewable energy infrastructure and production and energy efficiency improvements that will foster new job and market opportunities.” *********************************************************************************** Higher Ethanol Production Could Use More Exports After a COVID-19 slowdown in fuel demand, global energy prices have hit seven-year highs, and gasoline consumption is improving. Reuters says that means surging profit margins for ethanol producers and output levels at near-record highs. However, higher production without a corresponding increase in demand could mean growing stockpiles of the fuel. While that hasn’t been the case so far, an increase in lagging exports could bring balance to any extended output increases. Reuters says about 10 percent of all U.S. ethanol output gets exported every year, but trade has recently been a sore spot for ethanol. Shipments over the first eight months of 2021 totaled 796 million gallons, a 10 percent reduction from last year and the lowest for the period in five years. Two of the top customers for U.S. ethanol, Brazil and China, have been much less active recently. U.S. ethanol imports in Brazil grew more expensive than locally-produced ethanol because the free tariff-rate quota ended late in 2020. China was also expected to become a bigger importer of U.S. ethanol but hasn’t consistently imported larger amounts of the biofuel. *********************************************************************************** Rabobank: Challenging Outlook Ahead for Pork Producers Hog prices around the world have dropped as a recovery in production has outpaced rebounding demand. A Rabobank report says herd growth will slow in 2022 due to dropping prices, labor shortages, and cost inflation that will put pressure on production margins. These costs will likely get passed on to consumers, which will put downward pressure on demand and consumption levels. Supply chain disruptions and tight grain stocks around the globe are raising the cost of production at the same time a growing hog supply is driving down prices. “The most severe impact is being felt in markets that were slow to recover from COVID-19 or that have struggled with trade disruption or disease,” says Christine McCracken, Senior Analyst for Animal Protein at Rabobank. Limited pricing power and higher costs are also putting pressure on hog production returns, resulting in scaled-back growth plans in many markets. Tighter global inventories of corn and soybeans, together with the recent surge in the cost of fertilizer and chemicals, are likely to increase volatility in feed markets in 2022. “African Swine Fever remains an issue in many parts of the world, with active cases in China, the Philippines, South Korea, Vietnam, and Europe,” McCracken adds. *********************************************************************************** House Ag Committee Hearing on Supply Chain Disruptions The House Agriculture Committee will hold a hearing on supply chain issues on Wednesday, November 3. The hearing, titled “The Immediate Challenges to our Nation’s Food Supply Chain,” will address the wide-ranging supply disruptions in the U.S. food and agricultural sectors. The American Soybean Association led the effort for members of the Ag CEO Council to highlight agricultural supply chain issues to the administration. The council submitted a letter compiled by ASA staff and signed on by ASA and 16 other ag groups that was sent to the Department of Transportation, which has coordinated this effort on behalf of the White House’s Supply Chain Task Force. The correspondence outlines the most problematic areas for the ag industry, including transportation costs, labor availability, the global fertilizer market, and more. The letter says, “The supply chains that are critical for inputs and sales of goods face multiple and simultaneous challenges, leading to higher prices for inputs, lower prices for outputs, and in some cases, the inability to purchase goods or services regardless of price.” The Ag CEOs say the biggest challenges for the supply chain include labor shortages, congestion in trucking, rail freight, and the barges that haven’t recovered from Hurricane Ida shutdowns.
| Rural Advocate News | Monday November 1, 2021 |
Monday Watch List Markets The first Monday in November will start with traders checking over the latest weather forecasts and pausing at 8 a.m. CDT for a possible export sale announcement. ISM's index of U.S. manufacturing is set for 9 a.m. and will be compared to overnight reports of other manufacturing indices around the world. USDA's weekly grain inspections report is due out at 10 a.m., followed by a monthly report of soybean crush in the Fats and Oils report from NASS at 2 p.m. and the Crop Progress report at 3 p.m. CDT. Weather A cold front that moved through much of the country over the weekend will continue to push south on Monday. Scattered showers, including some snow, over the Central Plains will become lighter as they move into the southern Midwest. Colder temperatures will be in place behind the front through much of the week, causing frosts and freezes and slowing growth on wheat.
| Rural Advocate News | Friday October 29, 2021 |
Food Security is National Security Act Introduced in Senate Senate lawmakers Thursday announced the bipartisan Food Security is National Security Act. The legislation would give top U.S. agriculture and food officials permanent representation on the Committee on Foreign Investment in the United States. Lawmakers say the legislation includes new agriculture and food-related criteria for the committee to consider when reviewing transactions that could result in control of a U.S. business by a foreign company. Senate Republicans Chuck Grassley and Joni Ernst of Iowa joined Democrats Debbie Stabenow of Michigan and Jon Tester of Montana to introduce the legislation. Stabenow says, “As foreign entities continue their acquisitions of U.S. food and agriculture companies, American farmers and families deserve to know these transactions receive proper scrutiny.” To protect U.S. food security, the legislation grants permanent representation on Committee on Foreign Investment to both the Secretary of Agriculture and the Secretary of HHS, which oversees the Food and Drug Administration. *********************************************************************************** U.S.-Mexico Ag Officials Establish Working Group U.S. and Mexican agriculture delegates met this week during the 30th annual meeting of the Tri-National Agricultural Accord. The officials discussed concerns regarding recent decisions by Mexico’s federal government to impose arbitrary prohibitions on agricultural biotechnology and certain pesticides. Delegates reaffirmed their commitment that the regulation, import and use of these critical tools be based on science and established a working group to promote the goal, according to the U.S.-based National Association of State Departments of Agriculture. NASDA President Richard Ball of New York says, “We must work hand-in-hand to encourage the free flow of food across our borders and the continued development of technology that supports global climate resiliency.” The Tri-National Agricultural Accord is the primary opportunity for senior state and provincial agricultural officials of Canada, the U.S. and Mexico to work together on agricultural trade and development issues, a long-standing commitment to trade by the three countries. *********************************************************************************** USDA Announces Grants to Strengthen Specialty Crop Industry The Department of Agriculture Thursday announced more than $243 million in grants to support specialty crops. The funding is available through two USDA programs, the Specialty Crop Block Grant Program and the Specialty Crop Research Initiative grants program. USDA is investing $169.9 million through the Specialty Crop Block Grant Program to support farmers growing specialty crops, including fruits, vegetables, tree nuts and nursery crops. Since 2006, USDA has invested more than $880 million through the program. USDA also announced an investment of nearly $74 million to 21 award recipients through its Specialty Crop Research Initiative grants program. The program investments address critical challenges facing conventional and organic food and agricultural production systems across the specialty crop industry. The program's priority areas include improving crop characteristics, managing threats from pests and diseases, improving production efficiency, profitability, technological innovation, and mitigating food safety hazards. *********************************************************************************** NIFA Invests $50M for Beginning Farmer and Rancher Development USDA’s this week announced an investment of more than $50 million to 140 organizations and institutions that teach and train beginning farmers and ranchers. The funds will support curriculum creation, informational materials, and professional development for new farmers and ranchers through the National Institute of Food and Agriculture. NIFA Director Dr. Carrie Castille states, "We recognize that beginning farmers and ranchers have unique needs for education, training, and technical assistance." Their success, especially in the first ten years, often hinges on access to reliable, science-based information and the latest educational resources, according to USDA. In fiscal year 2020, NIFA awarded $16 million in Beginning Farmer and Rancher Development Program grants. In fiscal year 2021, thanks to enhanced funding from the Coronavirus Response and Relief Supplemental Appropriations Act, the total award investment for this program was just over $50 million, which included 85 newly funded grants and 55 continuation projects. *********************************************************************************** New Guide Outlines Crop Insurance Options for Small Grains As farmers start to think about next year's crop, the Center for Rural Affairs has released a new resource guide to inform producers who grow small grains about crop insurance options. Many farmers are familiar with their options for corn and soybeans, but fewer are familiar with their options for crops such as wheat, oats, barley, and rye. The reasons some Midwest and Great Plains farmers opt to grow small grains range from conservation benefits to the requirements of organic certification to local markets. However, while small grains do have benefits on the landscape, they come with associated risks. The guide covers the availability of established Multi-Peril policies for small grains, what to do if there is no available policy in your county, and other topics. Information included will be helpful for both organic and conventional producers. To view “From Seed to Secured: Crop Insurance for Small Grains,” visit cfra.org. *********************************************************************************** Free Regenerative Ag Webinar to Kick off Sustainable Ag Summit Week A free webinar hosted by Corteva Agriscience will unpack and explore the potential of regenerative farming to strengthen agriculture’s relationship with consumers. The event is set for 10 to 11 a.m. CST on Wednesday, November 17. The webinar includes an interactive panel featuring producers and executives across the agri-food value chain. The discussion will set the stage for industry professionals attending the 2021 Sustainable Ag Summit, which kicks off that afternoon and continues the following day. The dialogue also will tackle topics such as scaling regenerative data and innovation and helping farmers and ranchers access the resources they need to make the transition. Farm Journal Trust In Food executive vice president, Amy Cole, is one of the featured speakers. Cole says, “This webinar will begin to explore the path to achieving ambitious goals, centered on the needs and experiences of farmers and ranchers who steward soil, water and habitat.” Learn more and register online.
| Rural Advocate News | Friday October 29, 2021 |
Friday Watch List Markets Friday's reports start with U.S. personal incomes for September and the Labor Department's employment cost index for the third quarter, both due out at 7:30 a.m. CDT. The University of Michigan's index of consumer sentiment for October is set for 9 a.m. CDT. Traders will check the latest weather forecasts and keep an eye out for any export sales. Weather Scattered showers will continue across the eastern half of the country on Friday as a large, mature system spins across the eastern Midwest. Showers will be light to moderate but could last all day in some areas, leading to further or extensions of delays for the remaining corn and soybean harvest, as well as winter wheat planting. A frontal boundary will set up across the Canadian Prairies throughout the day and will bring cold temperatures to the U.S. over the weekend and into next week.
| Rural Advocate News | Thursday October 28, 2021 |
Crops Sector Received 65% of PPP Loans for Agriculture in 2020 Information updated by USDA’s Economic Research Service Wednesday shows 65 percent of Paycheck Protection Program 2020 agriculture funds went crop farms, with the latter for livestock. Last year, farmers and ranchers could use forgivable loans from the program to help keep employees on payroll and offset some of their operating costs. The maximum PPP loan amount was 2.5 times the monthly average profit plus payroll and eligible overhead expenses, such as the employer’s share of insurance payments and unemployment taxes. If used on eligible expenses within the first 24 weeks of payment, PPP loans were fully forgiven. Individual Small Business Administration loan data indicated that almost 121,000 farm operations applied for a total of $6.0 billion in PPP loans in 2020. That accounted for 17 percent of presumed-eligible farm operations. Out of the total PPP loans paid to farm operations in 2020, $3.9 billion went to crop operations, and the remaining $2.1 billion went to livestock operations. *********************************************************************************** Fish and Wildlife Service Seeks to Reverse Trump Era Rules The U.S. Fish and Wildlife Service and National Marine Fisheries Service seek to rescind two critical habitat regulations finalized in the last days of the Trump administration. In December 2020, FWS issued a final rule that revised the process for considering critical habitat exclusions under the Endangered Species Act. FWS re-evaluated the rule and concluded the conservation purposes of the ESA are better met by resuming its previous approach. The proposal follows an executive order which directed all federal agencies to review and address agency actions to ensure consistency with Biden administration objectives. The American Farm Bureau Federation calls the effort a disappointment. Farm Bureau President Zippy Duvall says, “The Biden administration has proposed three different changes to these regulations, signaling a return to complicated and burdensome rules that do little to advance conservation goals.” Duvall adds AFBF will remain engaged on ESA issues, and encouraged farmers and ranchers to share their stories during the proposed rule change comment period. *********************************************************************************** USB: Future of Farming Demands High-Speed Internet Solutions A new report reveals that providing U.S. farmers and ranchers access to fast, affordable and reliable broadband will increase sustainability. Funded by the United Soybean Board, the report says improved broadband will also allow more reliable and efficient food production for a growing population and strengthen America’s rural communities. Meagan Kaiser, USB treasurer, says, “Without a reliable connection to the internet, data collection and its subsequent use is severely limited,” noting data as the most valuable tool for farmers. The report lays out 15 recommendations for delivering the high-speed internet that farmers and rural communities need. The recommendations focus on performance standards, fiber internet access, and addressing gaps in broadband coverage. The recommendations are a direct response to the problems revealed in a 2019 rural broadband study from USB. The initial study showed 60 percent of U.S. farmers and ranchers do not believe they have adequate internet connectivity to run their businesses. *********************************************************************************** NIFA Invests $25M in Farm and Ranch Stress Assistance Network USDA’s National Institute of Food and Agriculture Wednesday announced $25 million for 50 grants supporting Farm and Ranch Stress Assistance Network State Department of Agriculture projects. Long before the pandemic caused an increase in stress around the world, stress-related mental health was already a rising concern across farm communities coast to coast. USDA-NIFA introduced a competitive grants program, the Farm and Ranch Stress Assistance Network, reauthorized by the 2018 Farm Bill, which supports projects that provide stress assistance for people in agriculture. Funded projects must initiate, expand, or sustain programs that provide professional agricultural behavioral health counseling and referral for other forms of assistance as necessary. As part of the grants, the Colorado Farmer and Rancher Mental Health Support Program will expand to assist agricultural workers, farmers, and ranchers in managing stress. And the Georgia Farmer Healthy Mindset program will take a multifaceted approach to address stress and mental health outreach and awareness. *********************************************************************************** USDA Invests $21 Million in Effort to Help Producers Build Drought Resilience The Department of Agriculture is investing $21 million as part of the Natural Resources Conservation Service’s collaboration with the Department of Interior’s WaterSMART Initiative. The effort helps farmers and ranchers conserve water and build drought resilience in their communities. The investments complement projects by irrigation districts, water suppliers and other organizations receiving WaterSMART Program funds from the Department of Interior’s Bureau of Reclamation. NRCS works with Reclamation to coordinate investments in the same community for accelerating water conservation and drought resilience and making a bigger impact where it is most needed. NRCS Chief Terry Cosby says, “Drought is a complex challenge, and our collaboration on WaterSMART is part of our strategic approach to help producers.” In fiscal year 2022, NRCS will invest in 15 new priority areas and 25 existing priority areas with continued need, assisting producers and communities in 13 states across the West. NRCS is providing the funding through Environmental Quality Incentives Program. *********************************************************************************** USDA Opens Registration for the 2022 Agricultural Outlook Forum Registration is open for the 98th annual Agricultural Outlook Forum, the largest annual meeting of the U.S. Department of Agriculture. The two-day event will be held virtually on February 24-25, 2022. The 2022 Forum will feature a keynote address by Agriculture Secretary Tom Vilsack, a presentation on the 2022 agricultural economy by USDA's Chief Economist Seth Meyer, a panel of guest speakers, and 30 breakout sessions. The sessions, organized by agencies across USDA, cover a range of timely issues impacting the sector. More than one hundred government, industry, and academic leaders will share their perspectives and insights on a wide array of topics, including commodity and food price outlooks, trade developments, climate change, and innovations in agriculture. The 2022 Forum theme and full program will be announced soon. Registration for the virtual USDA Agricultural Outlook Forum is free but required to attend. Register online and learn more about this year’s program at the USDA Agricultural Outlook Forum website.
| Rural Advocate News | Thursday October 28, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, an estimate of third quarter U.S. GDP and an update of the U.S. Drought Monitor. The Department of Energy reports on natural gas storage at 9:30 a.m., a concern for this year's fertilizer prices. Traders will continue to check the latest weather forecasts and watch for any news of an export sale. Weather A system is strengthening across the Mid-Mississippi Valley Thursday. This will bring scattered showers to the much of the Corn Belt down through the Southeast and strong winds on the backside of the system from the Southern Plains into the Southeast. Showers will continue to delay the remaining corn and soybean harvest, while winds will act to dry out winter wheat in the Plains and may damage cotton in the Southeast.
| Rural Advocate News | Wednesday October 27, 2021 |
Senators Want Meeting with Biden to Talk Biofuels Republican Senators Chuck Grassley of Iowa and John Thune of South Dakota joined several colleagues in requesting a meeting with President Biden to discuss biofuels and the Renewable Fuel Standard. They want to promote biofuels as a key solution for America’s energy and climate agenda. In July, Thune and Grassley tried to meet with the president to talk biofuels with the administration, but they said Biden ignored the request. “Mr. President, biofuels are a readily available energy solution that deserves full consideration, not only for helping to stem the recent increase in fuel prices - which has subsequently accelerated inflation - but to serve as a foundational source of transportation emission reductions as a part of your energy and environmental agenda,” the senators say in a letter to the White House. “We call on your administration to utilize the full capacity of American agriculture to deliver on both fronts, and we reiterate our request to discuss these matters with you in greater detail.” Earlier this year, Grassley reintroduced bipartisan legislation to expand markets for year-round biofuel consumption while also calling out the administration on the delay in assisting the biofuel industry negatively impacted by COVID-19. *********************************************************************************** Higher Food Prices Should Ease a Bit in 2022 Food prices are continuing to rise, and consumers across the country are adjusting their shopping habits. A Successful Farming article says food aid agencies are also ramping up their support efforts. Overall, food prices were 4.6 percent higher in September than last year. Beef prices were up 17 percent, and pork was almost 13 percent higher than 2020, and eggs were up by 12 percent. The USDA’s Food Price Outlook released this week is still projecting that higher food prices will ease a bit in 2022, with any future increases more in line with historical averages. However, with so many factors causing the rising prices, experts disagree on how soon those prices for food, as well as for gasoline and other products, will begin to settle down. In response to the rising costs, the Social Security Administration announced its biggest cost-of-living increase in ten years at 5.9 percent, but there’s concern that it won’t be high enough to offset the increasing cost of food. The Biden Administration also boosted SNAP benefits by more than 25 percent. Experts say the inflation spike appears on track to persist deep into 2022 as clogged supply chains, labor shortages, and continuing consumer demand pushes costs higher. *********************************************************************************** 2021 Thanksgiving Dinner Will Cost More While last year’s cost of a Thanksgiving Day dinner was the lowest it had been since 2010, this year could be quite a bit different. A New York Times report says it could be the most expensive dinner on record in the holiday’s history. Nearly every part of the traditional American Thanksgiving dinner will cost more, ranging from the turkey roasting pan to the coffee and pie. Executives from major food companies like Nestle have already said consumers need to be ready for even more price increases. During 2020, COVID-19 kept people from buying for big gatherings, and turkey prices were held down to entice shoppers. This year, turkey prices may see record highs, while the cost of many other foods has also jumped much higher. Industry experts tell the New York Times that there isn’t just one culprit causing the spike. The U.S. food supply has been hit by knots in the supply chain, the higher cost of transportation, a shortage of labor, trade policies, and bad weather. Inflation is also a problem. In September, the Consumer Price Index for food was 4.6 percent higher than 2020. Prices for meat, poultry, eggs, and fish were soaring 10.5 percent higher than last year. *********************************************************************************** ADM, Bunge Report Solid Earnings Despite Hurricane Ida Global agribusiness companies Archer-Daniels-Midland and Bunge likely turned in solid earnings in the third quarter despite weeks of suspended shipping caused by Hurricane Ida. Industry analysts expect good earnings numbers when the companies release their respective reports this week. Both companies benefitted from good margins in corn and oilseed processing and readily available grain supplies to trade, process, and ship overseas as higher prices compelled farmers to sell more of their crops. Long-term prospects for both companies got a boost from surging demand for vegetable oil for use in manufacturing renewable fuels. One analyst told Reuters that the current environment has higher prices that aren’t elevated enough to destroy demand. As people turn their attention to 2022, export demand is still high for U.S. grains. Export shipments from the Louisiana Gulf Coast, the biggest grain hub in the U.S., were halted for weeks after Hurricane Ida slammed into the area on August 29. The storm knocked out power to ADM and Bunge terminals and caused minor damage. The outage was almost a month long at the start of the U.S. corn and soy harvest and peak export season. Analysts say it probably hit ADM a little harder due to its larger U.S. footprint. *********************************************************************************** Thieves are Coming After Precision Ag Equipment A Farm Progress report shows that farmers need to keep an eye on their precision ag equipment, such as auto-guidance monitors and antennas. An ag store in central Illinois was set to send some equipment for field demonstrations at the 2021 Farm Progress show when a representative showed up to take the tractor there and couldn’t find the auto guidance monitor and antenna. Staff had calibrated the tractor the day before and left the equipment in the tractor. What they found in the tractor were cut wires and no auto-guidance parts. Across the entire lot, eight pieces of machinery had stolen antennas and monitors. Further south in Atlanta, four tractors and five combines had their monitors and antennas stolen. While no one is 100 percent sure, the Farm Progress report says it’s either a quick way to make some money, or the computer chip shortage may be another reason behind the thefts. While the chips can’t be tracked, the stolen monitors and antennas can be disabled to stop anyone from using them with systems such as AFS Connect from Case IH. The best prevention is locking up everything at night. Some farmers unplug their precision equipment at night, store it in a safe place and bring it back to plug in the next day to prevent theft. *********************************************************************************** Support Grows for Sustainable Productivity Growth Coalition Ag Secretary Tom Vilsack says more than 50 organizations and countries have declared support for the Coalition on Sustainable Productivity Growth for Food Security and Resource Conservation. The U.S. launched the coalition at the United Nations Food Systems Summit in September. The goal of the coalition is to recognize the importance of sustainable productivity growth for meeting the food security and nutrition needs of current and future populations while, at the same time, conserving resources and combatting climate change. The coalition will accelerate the transition to more sustainable food systems through productivity growth that optimizes agricultural sustainability across social, economic, and environmental dimensions. “We initiated this because it’s clear that increasing agricultural productivity is essential to meet the needs of a growing global population and ensure that food is affordable to hundreds of millions of people around the world,” Vilsack says. “If we’re going to end hunger, we must commit to developing and deploying new ways of doing things in agriculture.”
| Rural Advocate News | Wednesday October 27, 2021 |
Wednesday Watch List Markets Wednesday's reports start with September durable goods orders and factory orders at 7:30 a.m. CDT. With rumors swirling, traders continue to watch for a possible export sale announcement at 8:00 a.m. The U.S. Energy Department's weekly report of energy inventories, including ethanol production, is due out at 9:30 a.m. CDT. Weather A system moved out into the Plains on Tuesday and will slowly pivot across the middle of the country on Wednesday. This will produce a band of scattered moderate to heavy showers across the Western Corn Belt down to the Gulf Coast. Delays to harvest are expected. The rains skipped over the southwestern Plains and breezy winds there today will dry out the topsoil further, especially in west Texas, potentially damaging young wheat plants.
| Rural Advocate News | Tuesday October 26, 2021 |
Growth Energy Comments on Legislation to Repeal RFS Amid a global energy crisis and rising fuel prices at pumps across the country, members of the U.S. House of Representatives introduced legislation to repeal the Renewable Fuel Standard. Growth Energy CEO Emily Skor slammed the legislation Monday for trying to reduce Americans' access to homegrown, low carbon biofuels. Skor says, "Now, more than ever, we need to be incorporating more homegrown, low-cost, and low-carbon biofuels into our fuel supply." The RFS was signed into law over a decade ago to reduce reliance on foreign oil and increase the blending of low-carbon biofuels, saving consumers up to $0.10 per gallon at the pump. Additionally, a recent study conducted by ABF Economics shows that moving to nationwide adoption of E15, a fifteen percent ethanol blend, would save consumers $12.2 billion in annual fuel costs. Lawmakers who introduced the Corn Ethanol Mandate Elimination Act in July stated, “The federal corn ethanol mandate no longer makes sense when better, lower-carbon alternatives exist.” *********************************************************************************** Students Leaders Prepare for the 94th National FFA Convention & Expo FFA members and supporters from across the country will celebrate agriculture and agricultural education this week during the 94th National FFA Convention & Expo in Indianapolis. Held virtually last year, the event will once again be held in-person and hosted by the city of Indianapolis, starting Wednesday, with some virtual components. FFA members from across the country are expected to participate in the event. Those who will not participate in person will have an option to participate in online components – ranging from the virtual FFA Blue Room to student and teacher workshops to general sessions. Those attending in person will be able to participate in general convention sessions hosted at Lucas Oil Stadium and the expo, located in the Indiana Convention Center, and explore various career paths open to them. General convention sessions will be aired live on RFD-TV and The Cowboy Channel, and streamed on FFA.org. To learn more, visit convention.FFA.org. *********************************************************************************** AFT Selects Land Transfer Experts to Help New Farmer Generation American Farmland Trust announced its selection of a new national cohort of 48 leading experts in land transfer as partners in creating Transitioning Land to a New Generation. The project will build an adaptable, skills-based curriculum to help a new generation of farmers and ranchers navigate the legal, financial and interpersonal issues in accessing and transferring land. More than 40 percent of American farmland is owned by seniors aged 65 and older who are likely to retire in the next decade or so. Given the demographics, AFT estimates, 371 million acres or one-third of U.S. farmland will likely transition to new ownership in the next 15 years. Transitioning is funded by a Beginning Farmer and Rancher Development Program grant from USDA’s National Institute of Food and Agriculture. The three-year project builds on AFT’s previous grant project, Farmland for the Next Generation. Both projects are part of AFT’s ongoing, multi-faceted partnerships with organizations committed to helping beginning producers succeed. *********************************************************************************** Texas Carves New Position Leading the U.S. in Pumpkin Revenues Pumpkins are a staple of fall traditions for many Americans who pick them, carve them into jack-o’-lanterns, or bake pumpkin desserts. Although pumpkins are grown in many states, most of the production comes from ten states. By acreage and by weight, Illinois is consistently the nation’s largest pumpkin producer. However, unlike other states, most of Illinois’ pumpkins are used for pie filling and other processed foods, which receive a lower price. Production value of pumpkins in Illinois was ranked third in 2020 at $21.3 million, according to data released by USDA’s Economic Research Service Monday. In 2020, Texas led the nation in the value of pumpkins produced at $25.9 million, followed by Pennsylvania at $22.5 million, Illinois, and California at $20.7 million. Retail prices for pumpkins typically fluctuate week to week leading up to Halloween. In the second week of October 2021, the average retail price for jack-o’-lantern-style pumpkins was $4.09 per pumpkin, up 12 percent compared with the same week in 2020. *********************************************************************************** Sharing the Story of Agriculture with Food and Farm Facts Fascinating facts about food in America – how and where it is grown and who produces it – are at your fingertips in a new resource produced by the American Farm Bureau Foundation for Agriculture. Food and Farm Facts helps answer questions that learners of all ages may have, including "Where does our food come from and who grows it?" The 32-page, full-color book features updated facts and easy-to-read infographics about U.S. agriculture that can be used in various ways to help increase agricultural literacy. The book would be a valuable resource in the classroom, at fairs and events, for student leadership organizations and when creating social media posts. Copies of Food and Farm Facts may be purchased for $4.25 each. You can order the new Food and Farm Facts book, map, pocket guide and related products in the series at Fb.org/store. Additional Food and Farm Facts products created by the Foundation will be available later this fall. *********************************************************************************** Fuel Price Increases Should Slow Soon The nation’s average gas price increased 3.8 cents from a week ago to $3.36 per gallon, according to GasBuddy. The national average is up 17.1 cents from a month ago and $1.21 per gallon higher than a year ago. The national average price of diesel increased 5.9 cents in the last week and stands at $3.58 per gallon. However, “there may be some light at the end of the tunnel,” according to GasBuddy’s Patrick De Haan, who says, “The sharp rise we’ve seen over the last three weeks should begin slowing down soon, barring another jump in the price of oil.” The price of crude oil remained under pressure as global fundamentals continue to point out falling oil inventories and not enough supply amidst an energy crunch overseas. OPEC waived off any increases during their October meeting, but will meet again on November 4 and could revisit the decision to hold back production.
| Rural Advocate News | Tuesday October 26, 2021 |
Tuesday Watch List Markets Early Tuesday, traders will be watching to see if recent rumors of soybean sales show up in an announcement from USDA at 8 a.m. CDT. The market will also pay attention to reports on September new home sales and consumer confidence in October, both due out at 9 a.m. CDT. The latest weather forecasts will also be considered. Weather A system moving through the Rockies will increase winds across the Plains Tuesday, followed by increasing showers Tuesday night. Showers are likely to miss winter wheat areas in the southwestern Plains, but could cause some severe weather from Kansas south to Texas Tuesday evening.
| Rural Advocate News | Monday October 25, 2021 |
NCGA Joins Groups Commenting on Supply Chain Issues The National Corn Growers Association joined 51 other groups in sending comments to the U.S. Department of Transportation on the many issues currently disrupting the U.S. supply chain. The comments offered recommendations on how to alleviate these challenges through legislative and regulatory actions. “To be successful, farmers must have a reliable and fully-functioning national transportation system that allows us to get fall fertilizer shipments and deliver our products to consumers in a timely manner,” says NCGA President Chris Edgington. Their recommendations on inland waterways include prioritizing legislative and regulatory actions that promote the rehabilitation of aging waterway infrastructure on the Upper Mississippi and Illinois Rivers. The groups also encourage the Surface Transportation Board to allow “reciprocal” or “competitive switching,” which would allow shippers and receivers geographically beholden to one rail carrier to gain access to a second rail carrier through a short distance switch. Another transportation recommendation was that USDA and the Transportation Department continue working together to ensure agricultural haulers and the rest of the trucking industry have the flexibilities they need to provide timely delivery of essential products. The recommendations come soon after President Biden’s announcement that the Port of Los Angeles would begin to operate 24/7 to help mitigate the bottleneck on the West Coast. *********************************************************************************** Ethanol Output Back to Pre-COVID Levels Bloomberg says U.S. ethanol production reached its highest level since COVID-19 lockdowns brought the industry to a basic standstill. The ethanol industry reached production it hadn’t seen since June 2019. Gasoline demand on a four-week rolling average hit the highest point since 2007 for this time of year. The revival comes as corn is readily available at a relatively cheap price, setting the stage for better profit margins and a potential boost in overseas demand for U.S. supplies. The fuel industry is waiting for overdue Biden administration proposals on mandates requiring refiners to blend fixed amounts of the biofuel into the nation’s fuel supply. “Weak blending proposals from the Environmental Protection Agency would pull the rug out from underneath the industry just as it is finally recovering to pre-COVID levels of production,” Renewable Fuels Association President Geoff Cooper says in an email to Bloomberg. The cost of complying with the blending requirement in the Renewable Fuel Standard has been a longtime conflict between biofuel makers and fossil-fuel refiners, who says the cost of compliance credits puts fuel supplies and refining jobs at risk. *********************************************************************************** U.S. Winter Weather Outlook As La Niña climate conditions are back for a second-straight winter, above-average temperatures will show up in the South and most of the eastern U.S. That’s from the National Oceanic and Atmospheric Administration’s Climate Prediction Center, which issued the 2021 Winter Weather Outlook that extends from December 2021 through February 2022. NOAA says that’s consistent with typical La Niña conditions during the winter. They anticipate below-normal temperatures along portions of the northern tier of the U.S., while much of the South will experience above-normal temps. The Southwest U.S. will be the biggest concern as below-normal precipitation won’t improve the drought conditions in that region. Below-normal temps are likely in southern Alaska and the Pacific Northwest eastward through the Northern Plains. The Upper Mississippi River Valley and small parts of the Great Lakes have equal chances for above, near, or below-normal temps. The highest chances of wetter-than-average conditions are in the Pacific Northwest, northern Rockies, Great Lakes, and parts of the Ohio Valley. Drier than normal areas will include southern California and the Southeast U.S. The remainder of the U.S. has equal chances of above, normal, or below-normal temperatures. Widespread severe to exceptional drought continues to dominate the western half of the continental U.S., Northern Plains, and the Missouri River Basin. *********************************************************************************** IRS Anti-Surveillance Bill Introduced in Senate Iowa Senator Chuck Grassley joined several colleagues in introducing the “Prohibiting IRS Financial Surveillance Act” in the Senate. The legislation will prevent the Internal Revenue Service from implementing Democrats’ plan to give the agency access to the transaction information of virtually every American. Grassley says the information that the Democrats are seeking is a complete invasion of privacy. “The average American shouldn’t have to explain every financial transaction to the federal government,” Grassley says. “On top of that, this proposal would severely strain our local banks and credit unions with significant implementation and administrative costs.” He also says the IRS hasn’t demonstrated the ability to maintain the confidentiality of the information it already collects. The Missouri Chamber of Commerce is one group supportive of the legislation. “This is an unprecedented attempt to spy on millions of American’s financial transactions and would place onerous new burdens on our private banking institutions,” says Daniel Mehan, President and CEO of the Missouri Chamber. “The proposal would also increase costs for everyone at a time when we’re trying to rebuild our economy. We must put a stop to this reckless and intrusive federal policy.” *********************************************************************************** USDA Makes $1.15 Billion Available to Access High-Speed Internet Ag Secretary Tom Vilsack says his agency is making funding available to bring a significant expansion of access to high-speed internet, health care, and educational services for millions of Americans. USDA has $1.15 billion available to help people in rural communities across the country get access to high-speed internet. “For too long, the digital divide has left too many people living in rural communities behind, unable to compete in the global economy and without access to the services and resources that all Americans need,” he says. “These actions will go a long way toward ensuring that people who live or work in rural areas can tap into the benefits of broadband.” He adds that those benefits are numerous, including access to specialized health care, educational opportunities, and the global marketplace. “Rural people, businesses, and communities must have affordable, reliable, high-speed internet so they can fully participate in modern society and the modern economy,” Vilsack adds. USDA will begin accepting applications for loans and grants on November 24. USDA is making the funding available through its ReConnect Program. *********************************************************************************** Corn and Soybean Sales Surge The USDA says export sales of corn and soybeans jumped week-to-week while wheat sales dropped during the week ending on October 14. Corn sales were reported at 1.27 million metric tons, a 22 percent jump from the previous week and 67 percent higher than the prior four-week average. Unknown countries bought more than 456,000 metric tons, while Mexico bought just over 377,000 tons. Weekly exports came in at 1.04 million metric tons, a 14 percent increase from the previous week. Soybean sales totaled 2.88 million metric tons, up from 1.15 million a week earlier and noticeably higher than the prior four-week average. China was back in the buying game, purchasing 1.88 million metric tons, followed by unnamed buyers who bought almost 569,000 metric tons. Exports last week came in at 2.21 million metric tons, a 29 percent increase over the prior week. Wheat sales dropped 36 percent week-to-week to 362,400 metric tons. That’s a six percent drop from the prior four-week average. Nigeria was the top buyer at 98,000 metric tons, followed by Japan at 92,100 tons. Exports of U.S. wheat were 160,200 metric tons, a 65 percent drop from the previous week.
| Rural Advocate News | Monday October 25, 2021 |
Monday Watch List Markets The final full week of October begins with traders keeping up with the latest weather forecasts and pausing at 8 a.m. CDT for a possible export sale announcement. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Weather Moderate to heavy rain fell across good portions of the Corn Belt over the weekend and continues over eastern areas on Monday. A system in the West which has been producing flooding over drought areas will continue to slide through western states as well, before emerging into the Plains on Tuesday.
| Rural Advocate News | Friday October 22, 2021 |
Thursday a Busy Day for House Ag Committee The House Agriculture Committee Thursday moved several bills through the committee, including the Cattle Contract Library Act. The legislation, announced earlier this week, saw wide support from the agriculture industry. Representative Cindy Axne, an Iowa Democrat on the House Ag Committee, says, “The bill we’ve passed today is just one piece of what is needed,” adding, “There’s more that we must do to support transparency and increase competition in our cattle markets.” The committee also passed a bill that would provide $100 million in additional funds and make permanent the student scholarship program for students at the nineteen 1890 Colleges and Universities. Other bills passed through the committee include the Chronic Wasting Disease Research and Management Act, the, National Forest Restoration and Remediation Act, and the Pyrolysis (pie-rol-is-sis) Innovation Grants Act. Speaking of the scholarships bill, Chairman David Scott says, “I deeply and sincerely appreciate both my Democratic and Republican Members of Congress for their strong bipartisan support.” *********************************************************************************** Ranch Group Withholds Endorsement of Contract Library Bill The Cattle Contract Library Act of 2021 introduced this week received support from farm and livestock groups. However, there is one holdout, being R-CALF. The contract library bill requires beef packers to provide details of the types of forward contracts they use for purchasing fed cattle that are not purchased in the negotiated cash market, which is the price discovery market for the cattle industry. The bill also requires the Department of Agriculture to publicly report the total number of cattle that beef packers have committed to them six months and 12 months into the future. R-CALF USA’s board of directors reviewed the bill and determined it does not address the competition-disrupting leverage the highly concentrated beef packers now hold over the cattle market and that new methods of cattle procurement in use today by the largest beef packers may fall outside the scope of the bill. The House Agriculture Committee favorably reported the bill to the full chamber Thursday. *********************************************************************************** Vilsack Offers Support to Striking Deere Workers While traveling in Iowa this week, Agriculture Secretary Tom Vilsack offered his support to striking John Deere workers. Visiting union members outside a Deere and Company plant in Iowa, the Secretary told picketers, "You work hard, and you deserve a fair price and a fair deal," according to Reuters. The Deere employees, represented by the United Auto Workers, are joining thousands of others who have gone on strike in recent months. The workers are demanding higher pay and better working conditions. Vilsack told the workers he would be happy to tell Deere Chief Executive Officer John May how important it is to resolve the dispute quickly and fairly. Officials with Deere have repeatedly insisted they want to resolve the strike and maintain their workers status as the best paid in the industry. The strike began earlier this month after 90 percent of hourly workers rejected the company’s contract offer. Roughly 10,000 employees are on strike at 14 Deere locations in the United States. *********************************************************************************** FCC Announces Broadband Funding Through Rural Digital Opportunity Fund The FCC this week announced that it is ready to authorize nearly $550 million in its third round of funding for new broadband deployments through the Rural Digital Opportunity Fund. Together with two prior funding wave announcements, the FCC has now announced over $1 billion in funding to winning bidders for new deployments. In this funding wave, 11 broadband providers will bring fiber-to-the-home gigabit broadband service to over 180,000 locations in 19 states. Acting Chairwoman Jessica Rosenworcel (rosen-wor-sal) says, “Broadband is an essential service and during the pandemic we’ve seen just how critical it is for families, schools, hospitals, and businesses to have affordable internet access.” The FCC also denied several waiver petitions by companies that did not diligently pursue their applications. The 19 states slated for funding are Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kentucky, Maine, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, New Mexico, Ohio, South Carolina, Texas, and Wisconsin. *********************************************************************************** Potential 2022 Supply Chain Issues for Herbicides Supply chain disruptions and material shortages are fueling speculation about a herbicide shortage for the 2022 agriculture growing season. Allan Gray, executive director of the Purdue University Center for Food and Agricultural Business, suggests, "Flooding, COVID-19 outbreaks and congested ports disrupted production and exports in China for months, resulting in chemical manufactures rationing supply." Bill Johnson, Purdue professor of weed science and Purdue Extension weed specialist, encourages producers to plan to minimize the impact on corn and soybean production in the Midwest. Glyphosate and glufosinate are the two main active ingredients that potentially may be in short supply for the next growing season. Johnson warns, "Plan your upcoming weed control strategies to accommodate for limited availability because of supply or price of these two active ingredients.” Even if there isn't a widespread shortage, farmers will likely encounter higher chemical prices resulting in major challenges for corn and soybean production. *********************************************************************************** NIFA Invests $2M for Aquaculture Research USDA’s National Institute for Food and Agriculture recently invested $2 million for seven awards for the Special Research Grants Program for Aquaculture. The grants support the development of new science-based information and technology for environmentally and economically sustainable aquaculture industry in the United States. The program seeks practical solutions that will facilitate growth of the U.S. aquaculture industry, reduce the U.S. trade deficit in seafood products, and enhance the capacity of the U.S. aquaculture industry to contribute to food security and economic growth. NIFA awarded grants to the University of Arkansas-Pine Bluff, University of California-Davis, AI Control Technologies Inc, Mississippi State University, Ohio State University-Wooster, Texas A&M University-Chorus Christi, and Texas State University-San Marcos. Global demand for seafood is projected to increase by 70 percent in the next 30 years, and harvests from capture fisheries are stable or declining. A consensus is growing that a dramatic increase in aquaculture is needed to supply future aquatic food needs.
| Rural Advocate News | Friday October 22, 2021 |
Friday Watch List Markets Early on Friday, the early report of note is the Manufacturing PMI. We will again be watching for any changes in harvesting weather, and any announcements of new export sales. Friday after the close, we will have the CFTC Commitment of Traders report. Weather Some isolated showers will be possible across the Corn Belt Friday, but most areas east of the Rockies will be drier with quieter weather conditions that should favor harvest. Cooler weather is settling into northern areas as well. Scattered showers will move into the Pacific Northwest, however, which would favor winter wheat establishment.
| Rural Advocate News | Thursday October 21, 2021 |
Vilsack, Villalobos meeting Focused on Trade, ASF and Climate Change The Department of Agriculture Wednesday released a joint statement following bilateral meetings between Agriculture Secretary Vilsack and Mexico’s Agriculture Secretary. Vilsack and Victor Villalobos (Villa-bus) met in Ames, Iowa, Wednesday, with meetings focused on agriculture trade between the two countries. In the statement, the leaders say, “We reaffirm the importance of our two nations’ exceptional agricultural trading relationship.” The discussions highlighted the importance of continuing to work together to advance rural prosperity and to fulfill a shared responsibility to protect agricultural systems and producers, according to USDA. That includes collaborative efforts to prevent the spread of African swine fever and other animal and plant diseases and pests. The two also addressed climate change, saying, “our farmers, ranchers and producers are on the front lines dealing with the increasingly urgent challenges of climate change.” The pair expressed confidence that the U.S. and Mexico agriculture sectors will be a key part of the solution. *********************************************************************************** Global Ag Productivity Growth Off Target for 2050 Demand An annual report from Virginia Tech University shows agriculture is behind the pace of meeting the productivity needs of 2050. The 2021 Global Agricultural Productivity Report urges the acceleration of productivity growth at all production scales to meet consumers' needs and address human and environmental well-being threats. Productivity growth remains the primary source of agricultural output growth globally. Still, the USDA Economic Research Service's new methodology for calculating total factor productivity reveals it is not growing as fast as previously thought. Globally, total factor productivity grew by an average of 1.36 percent annually from 2010 to 2019, well below the Global Agricultural Productivity Index target of 1.73 percent. The report says human-caused climate change has slowed global agricultural productivity growth by 21 percent since 1961. Researchers say maximizing agriculture’s climate change mitigation potential is essential for sustainability, yet for most of the world’s producers, adapting to climate change and protecting their livelihoods is the most immediate challenge. *********************************************************************************** Larger Livestock Loans Boost Farm Lending Demand for livestock loans grew in the third quarter, boosting agricultural lending activity. However, demand for operating loans was more subdued, and total non-real estate lending remained near its average of the past decade. The Kansas City Federal Reserve Bank Wednesday said the average size of loans for some livestock categories reached an all-time high and contributed to the increased lending. While the average size of operating loans also remained elevated, a smaller number of loans limited the overall financing of operating expenses. The agricultural economy generally remained strong as elevated commodity prices continued to support farm incomes. Prices of most major crops were at multi-year highs moving into fall harvest and supported farm revenue prospects. However, weakness in the cattle industry persists as low cattle prices continued to limit profit margins for producers. In addition, concerns about drought and higher input costs continued to intensify and likely contributed to an increase in financing needs in the livestock sector. *********************************************************************************** House Lawmakers Introduce Cattle Library Contracts Bill House lawmakers Wednesday announced a bill to create a library for cattle contracts within the U.S. Department of Agriculture's Agriculture Marketing Service Department. Cattlemen are currently unaware of contract terms offered by packers, leading to a decline in leverage for smaller producers during price negotiations. South Dakota Republican Dusty Johnson and Texas Democrat Henry Cueller introduced the bipartisan Cattle Contract Library Act of 2021. USDA maintains a pork contract library, and following significant volatility in the cattle market and the release of the July 2020 Boxed Beef & Fed Cattle Price Spread Investigation Report, the creation of a library was recommended by experts and stakeholders. Representative Johnson states, “Data drives marketing decisions and a contract library will provide much-needed leverage for independent producers.” The legislation received broad support from the American Farm Bureau Federation, National, Cattlemen’s Beef Association, U.S. Cattlemen’s Association, National Farmers Union, and the Livestock Marketing Association. *********************************************************************************** Brazil Partially Halting Beef Production over China Export Ban Brazil is partially halting beef production intended for China while waiting on China to lift an export ban. Brazil’s Agriculture Ministry made the announcement while claiming China is taking too long to lift the ban. The suspension started on September 4 when Brazil confirmed two atypical cases of mad cow disease, and followed existing trade protocols between Brazil and China. The ministry has also temporarily allowed beef processors to store for up to 60 days meat produced before China's suspension took place, according to Reuters. Brazil's Agriculture Ministry announced this week its Agriculture Minister is willing to travel to China to discuss with Chinese counterparts a potential end to the ban. The World Organization for Animal Health last month said it won’t make any change to Brazil’s status as a “negligible risk” country for Bovine Spongiform Encephalopathy (in-sef-o-lop-athy), the scientific term for mad cow disease. Brazilian beef accounts for 40 percent of China’s imports. *********************************************************************************** Value of Corn in Pet Food A recent study found that corn and corn gluten meal are the top two most used plant-based ingredients in pet food products. Corn is the dominant plant-based carbohydrate at 1.2 million tons, and corn gluten meal is the dominant plant-based protein ingredient at 476,000 tons used annually. Thanks to pet food, the corn industry moved 1.9 million tons of product, valued at a total of $438 million. Farmers and farm-product processors sell $6.9 billion worth of products to pet food manufacturers every year that are used as ingredients. The Institute for Feed Education and Research, the Pet Food Institute, and the North American Renderers Association compiled the data. Sales made by farmers and processors of farm products to pet food manufacturers stimulates further upstream economic activity, leading to the purchase of $5.3 billion of materials and services from farm suppliers, to produce products that are used as pet food ingredients, according to the report.
| Rural Advocate News | Thursday October 21, 2021 |
Thursday Watch List Markets Early on Thursday we'll see the release of leading economic indicators, jobless claims and existing home sales. We will also be watching for weekly export sales, out at 7:30 Central time. We will watch for any new flash sales announced at 8 a.m., by the USDA, with an emphasis on China, and we'll look for any significant weather changes. Weather A compact system will continue to bring scattered showers to the eastern Midwest on Thursday while some additional showers form across the Southeast. Some minor impacts are expected from these showers but most areas will continue to have favorable conditions. Lower temperatures have filtered in behind the system across the Plains and western Midwest and some first frosts will be recorded over the next couple of days, which is either on time or late for this time of year.
| Rural Advocate News | Wednesday October 20, 2021 |
Ag Groups Formally Object to EPA Chlorpyrifos Rule This week, more than 80 agricultural groups filed formal objections to the Environmental Protection Agency’s August 30 rule to revoke all tolerances of chlorpyrifos (clo-PEER-uh-foss). Stakeholders can object to pesticide tolerance changes or cancellations, and the EPA Administrator must then respond. In the coalition letter, the agriculture sector cited numerous concerns with EPA's revocation decision, including the processes EPA used and lack of scientific basis. EPA's scientific record on chlorpyrifos shows many safe uses of the chemistry do not pose a dietary or environmental risk. Regardless, the coalition charges, the agency is opting to revoke tolerances for these safe, low-risk uses. American Farm Bureau President Zippy Duvall called the EPA action shortsighted, saying, “Taking care of the land and our natural resources is a top priority for farmers, and this revocation rule actually makes it harder for us to do that.” Additionally, EPA’s rule revokes tolerances on crop uses where many growers have few or no alternatives. *********************************************************************************** Ad Council, Others, Reaching Rural Residents on COVID-19 Vaccines The Ad Council and groups representing Rural America are helping rural residents learn more about the COVID-19 vaccine. The Ad Council and the COVID Collaborative have partnered with the American Farm Bureau Federation, the Cooperative Extension System and the National Association of Farm Broadcasting, among others, for the campaign. The campaign includes public service announcements featuring rural residents and farmers providing their perspectives on the COVID-19 vaccine. In September 2021, incidence rates of COVID-19 in rural America were roughly 54 percent higher than elsewhere in the country, according to the Rural Policy Research Institute. However, large groups among the rural population who remain undecided about vaccination continue to have concerns about long-term side effects of the vaccines and doubts about the efficacy of vaccination due to new breakthrough cases. Recent CDC data reveals that 35 percent of rural Americans are unvaccinated, a vaccination rate ten percent lower than their urban and suburban counterparts. *********************************************************************************** Farmland Sales Expected to Be Especially Brisk The amount of farmland being sold increased since the first of the year and charged ahead during the pre-harvest time frame recently. The increased selling will continue through the fall land sales season and most likely into early winter, according to Farmers National Company. The boost in selling interest by landowners has been largely driven by strong land prices in the past twelve months. A normal amount of land is sold into the open market each year by estates and recent inheritors who decide to sell the newly owned asset instead of keeping it. This often happens with larger family groups who conclude that it is easier to settle the estate with cash instead of land. However, several other reasons are bringing more landowners to conclude that now is the time to sell. Landowners cite high land prices, succession planning, and trading into better quality land. Others cite the uncertainty in tax policy being discussed in Washington. *********************************************************************************** USDA Appoints New Members to Food Safety Advisory Committee The Department of Agriculture appointed 13 new members and 17 returning members to the National Advisory Committee on Microbiological Criteria for Foods Tuesday. Committee members are chosen based on their expertise in microbiology, risk assessment, epidemiology, public health, food science, and other disciplines. One individual affiliated with a consumer group is included in the membership of the committee. The activities of committees are carried out, in part, by subcommittees that are focused on specific topics being considered by the full committee. The committee has contributed to a broad range of food safety issues, and committee reports provide information and scientific advice to federal food safety agencies. The committee also provides a foundation for regulations and programs to reduce foodborne disease and enhance public health. Agriculture Secretary Tom Vilsack adds, "These individuals will play a significant role in helping to ensure the safety of our nation's food supply." The list of members is available on the USDA FSIS website. *********************************************************************************** USDA Launches New Effort to Reduce Salmonella Illnesses Linked to Poultry The Department of Agriculture's Food Safety and Inspection Service Tuesday announced a stronger and more comprehensive effort to reduce Salmonella illnesses associated with poultry products. The agency is initiating several activities to gather data and information necessary to support future action and move closer to the national target of a 25 percent reduction in Salmonella illnesses. Despite consistent reductions in the occurrence of Salmonella in poultry products, more than one million consumer illnesses due to Salmonella occur annually, and 23 percent of those illnesses are due to consumption of chicken and turkey. USDA intends to seek stakeholder feedback on specific Salmonella control and measurement strategies, including pilot projects, in poultry slaughter and processing establishments. A key component of the approach is encouraging preharvest controls to reduce Salmonella contamination coming into the slaughterhouse. The data generated from pilots will be used to determine if a different approach could reduce Salmonella illness in consumers. *********************************************************************************** USDA Now Accepting Grant Applications for Wood Products, Energy Deputy Agriculture Secretary Dr. Jewel Bronaugh (Bruh-NAW) announced Tuesday approximately $13 million in new funding opportunities to support innovation in wood products and wood energy. The announcement came during a “Leaders for the Built Environment” virtual event and kicks off National Forest Products Week as proclaimed by President Biden. Organized by the Forest Service, Dovetail Partners, WoodWorks and the Softwood Lumber Board, the event aimed to challenge senior leaders from companies in attendance, like Walmart and Microsoft, to explore how mass timber construction can support their climate and sustainability goals. The USDA Forest Service is now accepting applications for these funds through the 2022 Wood Innovations Grant Program and the 2022 Community Wood Grant Program. The grants are designed to develop and expand the use of wood products and strengthen emerging wood energy markets that support sustainable forest management – particularly in areas of high wildfire risk. The application period for both grant programs closes on Wednesday, January 19, 2022.
| Rural Advocate News | Wednesday October 20, 2021 |
Wednesday Watch List Markets Early on Wednesday, there are few reports except for the Beige Book, the Fed's report on economic conditions. We will also be watching for any new export sales at 8 a.m., especially to China, and any changes in the weather outlook. At 9:30 a.m. CDT the Energy Information Administration's weekly petroleum report will be released with a focus on ethanol production. Weather A compact little system moving through the Corn Belt will bring some moderate showers from South Dakota to Minnesota on Wednesday, with more isolated showers elsewhere. With harvest progress so far along in both states, impacts to harvest overall will be small. Other areas with only isolated showers should still find mostly favorable conditions for harvest. Lower temperatures are filtering in behind the system across the Northern Plains already.
| Rural Advocate News | Tuesday October 19, 2021 |
Vilsack to Host Mexico’s Agriculture Secretary in Iowa Agriculture Secretary Tom Vilsack will host bilateral meetings with Mexico’s Secretary of Agriculture and Rural Development Víctor Manuel Villalobos Arámbula (Villa-bus Arm-bew-lah) in Iowa this week. Vilsack will also participate in the World Food Prize Laureate Award ceremony in the Des Moines area. On Wednesday, Secretary Vilsack and Villalobos will travel to Ames, Iowa, for a tour of Iowa State University's Seed Science Center and Plant Sciences Institute. Secretary Vilsack and Secretary Villalobos will also engage in bilateral discussions while at the university. That afternoon, the Secretaries will travel to Ankeny, Iowa, where they will tour a local farm and participate in a conversation about the challenges farmers have faced during the past year and how farmers can be better supported. On Thursday, the leaders will participate in World Food Prize events, in Des Moines, Iowa. That evening, the Secretaries will attend the Laureate Award Ceremony at the Iowa State Capitol in Des Moines. *********************************************************************************** EPA Announces Strategy to Confront PFAS Pollution Environmental Protection Agency Administrator Michael Regan Monday announced the agency’s comprehensive Strategic Roadmap to confront PFAS contamination nationwide. The roadmap results from a thorough analysis conducted by the EPA Council on PFAS that Administrator Regan established in April 2021. EPA's Roadmap is centered on three guiding strategies, including increasing investments in research, leveraging authorities to take action now to restrict PFAS chemicals from being released into the environment, and accelerate the cleanup of PFAS contamination. Administrator Regan says, “For far too long, families across America – especially those in underserved communities – have suffered from PFAS in their water, their air, or in the land their children play on.” The roadmap lays out an aggressive timeline to set enforceable drinking water limits under the Safe Drinking Water Act to ensure water is safe to drink. In April 2021, Administrator Regan established the EPA Council on PFAS to address the impacts of PFAS contamination. *********************************************************************************** Organic Trade Association Seeking New CEO The Organic Trade Association Monday announced the launch of a nationwide search for a new CEO and Executive Director. After more than a decade of service to OTA and the organic community, current CEO Laura Batcha plans to step down in spring 2022. OTA’s search committee is composed of members of the association’s Board of Directors and led by Board Member Paul Schiefer, who says, “OTA is steering the organic sector into the future; our next CEO will have the unique honor of guiding that journey.” Batcha has worked coast to coast on organic farms, started her own organic botanicals business, worked for several years at a multinational organization, and for the last thirteen years has led the Organic Trade Association. Batcha first joined OTA in 2008 as Director of Marketing and Public Relations, and was named CEO and Executive Director in January of 2014. The Organic Trade Association is the membership-based business association for organic agriculture and products in North America. *********************************************************************************** 2022 World Ag Expo Chairman Announced World Ag Expo recently announced Steve Wilbur as chairman of the 2022 event. A local cotton farmer, Wilbur also runs a dairy with his family, grows feed and multiple row crops. He has previously served as the International Agri-Center Board Chair, as well as being the 2014 Chairman of the California Cotton Growers Association and serving on the board of Cotton Inc. The 2022 show proclaims World Ag Expo is "Back in Agtion," a play on words with a few meanings. While COVID-19 sidelined the live show in 2021, farmers and ag professionals never stopped working during the pandemic. Volunteers and staff are ready to bring back the live show and provide a place for everyone in ag to meet, shop, and learn something new. Tickets are on sale online, and attendees can plan their visit at www.worldagexpo.org. The 55th edition will run Tuesday, February 8 through Thursday, February 10, 2022, at the International Agri-Center in Tulare, California. *********************************************************************************** Fuel Prices Continue Increase The nation's average gas price increased 2.9 cents from a week ago and stands at $3.30 per gallon, according to GasBuddy. The national average is up 7.5 cents from a month ago and $1.08 per gallon higher than a year ago. The national average price of diesel increased 7.8 cents in the last week and stands at $3.53 per gallon. The start of the new week brought oil to yet another fresh seven-year high. GasBuddy's Patrick De Haan says, “With OPEC holding back oil production and strong global oil demand, the situation will no doubt pave the road with even higher gas prices in the weeks ahead.” Until several bottlenecks ease, including supply chains and low global inventories of oil, natural gas and coal, the U.S. will be stuck feeling the pinch of rising oil and gasoline prices. According to the Energy Information Administration, crude oil inventories saw a surprising jump, thanks largely to refinery utilization, or inputs, dropping a significant amount. *********************************************************************************** Ocean Mist Farms Announces New CEO Ocean Mist Farms, the leading grower and marketer of fresh artichokes in the U.S. and premium supplier of fresh vegetables for nearly 100 years, announced the promotion of Christopher Drew to President and Chief Executive Officer. Drew will be responsible for leading all commercial, operational, financial, and administrative aspects of Ocean Mist Farms in his new role. The Board of Directors unanimously selected Drew from among many distinguished Produce and Consumer Packaged Goods executives sourced through a national search. In his previous role as COO, Drew collaborated with teams across the organization to streamline strategies and processes and oversee the operational departments and facilities across the organization: cooling, shipping, production, harvesting, food safety, quality assurance, and value-added operations. Before joining Ocean Mist Farms, Drew earned his Bachelor of Science in Crop Science from California Polytechnic University, followed by his Master's degree in Business Administration from the University of Phoenix - San Jose.
| Rural Advocate News | Tuesday October 19, 2021 |
Tuesday Watch List Markets Early Tuesday we will have housing starts and building permits released. Crop progress results from Monday afternoon will be important. We will also be watching closely for any new export sales announcements to China, and changes in the upcoming harvest weather. Weather A small and compact system will bring scattered showers from Nebraska and South Dakota westward into the Rockies on Tuesday. Some pockets of moderate precipitation will be possible, along with snow in western areas. Other areas will enjoy dry and mild conditions, benefiting harvest.
| Rural Advocate News | Monday October 18, 2021 |
Ag Groups Want More Action on New Trade Opportunities Agriculture groups recently came together during a Farmers for Free Trade roundtable to talk about trade. They all expressed frustration that the Biden administration hasn’t initiated any new trade talks. The groups are especially interested in more Southeast Asian opportunities as more and more countries show interest in the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership, formerly known as TPP. A DTN report says that while ag exports have hit record levels, they want the administration to look into getting back into the 11-country trade deal. U.S. agriculture closed out the fiscal year 2021 with a USDA projection of $175.3 billion in final sales, almost $34 billion higher than the previous fiscal year. Joe Glauber (GLAW-ber), a one-time chief economist for the USDA and former ag trade negotiator, says while the U.S. was involved in trade wars during recent years or renegotiating old agreements, America’s competitors weren’t sitting by and watching. “Unfortunately, we decided to leave TPP, but the rest of those countries got an agreement,” Glauber says. “We found ourselves trying to figure out what to do with markets like Japan, which we need, and our competitors now have better access to than we do.” *********************************************************************************** NASS Collecting Additional Information on Local Food Practices The USDA’s National Agricultural Statistics Service will be collecting additional information on agricultural products marketed as local foods during 2020. Earlier this year, NASS collected detailed data on 2020 local food marketing practices. This information came from farmers and ranchers who had previously reported local food marketing activity on prior surveys and a census. In light of the extreme dynamics brought on by COVID-19 and reliance on previous indicators of local food marketing based on the 2017 Census of Agriculture, contacting additional producers to get the complete picture of local food marketing practices is now a necessary step. As a result of the current conditions, NASS will collect information from producers who have not indicated prior local food marketing. The data release, originally scheduled for November 18, will now be delayed until the new information and the data collected earlier this year are combined. The 2020 Local Food Marketing Practices Survey report likely won’t get released until early 2022. *********************************************************************************** USDA Working to Strengthen School Meals USDA Secretary Tom Vilsack, Undersecretary for Food, Nutrition, and Consumer Services, Stacy Dean, and USDA Food and Nutrition Service Administrator Cindy Long hosted a listening session on school meals. The session took place with 19 school food industry executives to discuss their critical role in strengthening access to nutritious foods for school meals programs, both now and into the future. “USDA’s school meal programs have a wide-reaching impact on the health and well-being of our nation’s children,” Vilsack says. “Now, more than ever, America’s children need access to healthy and nutritious foods, and our industry partners play a huge role in making that happen.” The meeting took place as the department, schools, and other partners across the country celebrated National School Lunch Week from October 11-15. The week is set aside as an opportunity to celebrate the high-quality, delicious, and nutritious lunches children get at their schools. COVID-19 and the resulting economic challenges have highlighted the essential role that school meals play in addressing childhood hunger, as well as the tireless dedication and creativity of school food professionals in making sure that children are well-fed, no matter the situation. *********************************************************************************** U.S. Fertilizer Industry Commits 70-million Acres to Nutrient Stewardship The Fertilizer Institute looked to the future in announcing an industry-wide commitment to commit 70 million acres under 4R Nutrient Stewardship management by 2030. Acres managed under the 4R concept incorporate practices that use the right fertilizer source at the right rate, at the right time, and in the right place. When the 4Rs are put into practice, growers can achieve higher yields, lower input costs, and fewer nutrient losses to the environment. “The sustainable use of fertilizer is not only a priority for the fertilizer industry but millions of farmers across the nation,” says Corey Rosenbush, TFI president and CEO. “A key goal for the industry is a commitment to a healthy environment and setting this goal to improve nutrient stewardship is an important step in meeting that goal.” A 4R acre is defined as an acre of U.S. cropland under management using 4R practices, such as organic sources and removal rates, variable technology, split applications, the use of cover crops, accounting for the weather during the application, and several others. Fertilizer is a key component of sustainable crop production systems, and the fertilizer industry recognizes the need to use these nutrients efficiently. Practices based on the right source, rate, time, and placement of fertilizer application can lead to improved on-farm profitability, improved water quality, and reduced loss of greenhouse gas. *********************************************************************************** McDonald’s Testing a Plant-Based Burger in November McDonald’s says it will test the “McPlant” burger in restaurants next month. The chain developed the burger in partnership with Beyond Meats. CNBC says it’s the latest step in McDonald’s cautious approach to adding plant-based meat to its menu. The company took its time learning about meat substitutes and consumer demand, even as other fast-food chains raced to add fake meat items to their respective menus. Rival Burger King added the Impossible Whopper to its menu two years ago. Starting November 3, McDonald’s will offer the fake-meat burger at restaurants in select cities in Texas, Iowa, Louisiana, and California. The meatless burger ingredients include peas, rice, and potatoes, and the McPlant burger will be cooked on the same grills as its legitimate beef patties. The company says the limited test is supposed to help the chain understand the impact of introducing a plant-based burger in its operations. McDonald’s already sells the “McPlant” in international markets like Sweden, Denmark, and several others. *********************************************************************************** Ethanol Production Levels Hit Highest Point Since July The U.S. Energy Information Administration says ethanol output topped the million-barrel a day mark for the first time in two months during the week ending on October 8. At the same time, inventories also began to decline. Biofuel production jumped to an average of 1.032 million barrels a day during the week. That’s up from 978,000 barrels a day, on average, the previous week, and government data says that’s the highest level since July 9. It’s also the first time production averaged more than one million barrels a day since July 30. The nation’s largest producing region is in the Midwest, which averaged 977,000 barrels a day in output during the week, up from 937,000 barrels the previous week and was the highest level since the week ending on July 16. East Coast production doubled to an average of 12,000 barrels a day, while Gulf Coast output surged to 25,000 barrels a day, up from 16,000 the prior week. Rocky Mountain production was steady at 11,000 barrels a day. The only region that saw lower production was the West Coast, which fell to an average of 8,000 barrels a day from 9,000 during the previous week.
| Rural Advocate News | Monday October 18, 2021 |
Monday Watch List Markets Early on Monday both U.S. industrial production and manufacturing production reports will be out. DTN will also be watching for any new announcements of export sales, especially to China and/or unknown destinations, along with export inspections and crop progress on Monday afternoon. Weather A system is moving into the western U.S., but most of the country will be dry as temperatures rise across the Corn Belt on Monday. Conditions will help those that have gotten soggy last week to continue to dry out, but there are showers coming from that western system this week.
| Rural Advocate News | Friday October 15, 2021 |
John Deere Workers Go on Strike Deere & Co. couldn’t reach an agreement with workers on a six-year labor contract, prompting thousands of employees to begin a strike on Thursday. Members of the United Auto Workers overwhelmingly rejected a contract that was previously agreed on by the union’s leadership and the tractor maker. After weeks of negotiations, UAW leadership and the world’s biggest farm equipment maker reached agreements on wages and other benefits. However, Reuters says 90 percent of the union’s workers voted against the deal. The tentative deal had covered roughly 10,000 production and maintenance employees in 14 facilities scattered around the U.S. “Pickets have been set up, and our members are organized and ready to hold out and fight for a contract they believe meets their needs,” says Ron McInroy, UAW Region 4 Director. The company says it remains committed to reaching a new agreement, adding that it hasn’t figured out a timeline for finishing the negotiations. The rejected contract proposal would have given five percent wage hikes for some workers and a six percent boost to others. A source familiar with the negotiations says the workers understand they had to make concessions in the past and now want some of those back when Deere is doing financially well. The strike is taking place in the middle of harvest, making it difficult for farmers to find parts for tractors and combines. *********************************************************************************** White House Takes Steps to Address Supply Chain Issues The Biden Administration announced a series of steps in the private and public sectors to help address the continuing supply chain crisis in the U.S. Forbes says the White House actions are intended to help goods move faster and strengthen the resiliency of American supply chains. Operations at the Ports of Long Beach and Los Angeles are moving to 24/7 operations. Those two spots take in about 40 percent of all the containers coming into the U.S. and are on track to reach record import numbers in 2021. Biden says this is an across-the-board commitment to going to 24/7. “It’s a first big step in speeding up the movement of materials and goods through our supply chain,” the president says. “But now we need the rest of the private sector chain to step up well.” Biden also says strengthening our supply chains will continue to be his team’s focus, and if federal support is necessary, he’ll direct them to take all appropriate actions. In addition to the expanded hours, the International Longshore and Warehouse Union workers are willing to work extra shifts to help. Large companies like Walmart, UPS, FedEx, Home Depot, and Target have committed more hours to moving cargo off the docks faster so ships can come ashore. *********************************************************************************** Online Tool Offers Drought-Stricken Ranchers Compensation Estimate for Transportation Costs An online tool is now available to help ranchers document and estimate payments to help cover the costs of feed transportation caused by drought. Those costs are now covered by the Emergency Assistance for Livestock, Honeybees, and Farm-raised Fish Program, or ELAP. The USDA updated the program this year to include feed transportation costs and lowered the threshold for when assistance for water hauling expenses is available. USDA will begin taking applications this fall. “Drought has had a tremendous impact on producers, and we’re thinking outside the box to help producers mitigate the effects of drought, which is a necessary first step to realizing the Secretary’s vision of ensuring agricultural producers get a fair share of the food dollar,” says FSA Administrator Zach Ducheneaux. “We’re continually working to make our programs as flexible as possible, so they effectively help producers face today’s challenges.” The new ELAP Feed Transportation Producer Tool is a Microsoft Excel workbook that enables ranchers to input information specific to their operation to determine an estimated payment. Final payments may vary depending on eligibility. More information is available at www.fsa.usa.gov/elap. *********************************************************************************** EPA, Army Announce Regional Roundtables on WOTUS The Environmental Protection Agency and the Department of the Army are calling on communities to propose roundtables to provide input on the implications of the new “WOTUS” rule. The regional roundtables will engage stakeholders representing many perspectives in important conversations designed to help the agency work to develop an enduring definition of the “Waters of the U.S. Rule” that supports public health, protects the environment, agricultural activity, and economic growth. “Crafting a lasting definition of WOTUS means that we must bolster our understanding of how different regions experience and protect our nation’s vital waters,” the EPA says in a news release. “These roundtables will provide a great opportunity to deepen our shared knowledge. They also represent an opportunity among a suite of strategic tools that the agencies can utilize to obtain input on this important topic.” The EPA and Army are announcing a process for stakeholders to submit nomination letters with a slate of participants to potentially be selected as one of ten geographically focused roundtables. The agencies are inviting stakeholders to organize a targeted set of interested parties and regional representatives to participate in these discrete roundtables. For more information on the guidelines, go to www.epa.gov/wotus. *********************************************************************************** Food Price Index Continues to Climb Food prices in the nation’s grocery stores continued to climb in September, helping to push the overall Consumer Price Index higher. The food index increased .9 percent in September, following a smaller .4 percent increase in August. The food at home index increased 1.2 percent through the month as all six major grocery store food group indexes rose higher. The index for meat, poultry, fish, and eggs rose 2.2 percent during the month as the index for beef rose 4.8 percent. The index for other food at home rose by 1.1 percent. The cost of fruits and vegetables also went up, as that index was .6 percent higher in September, a larger increase than the rise in August. The cereals and bakery products index jumped 1.1 percent during the month, while the index for dairy and related products rose by .7 percent. It even cost people more to eat out during September as the food away from home index rose .5 percent. An increase in limited and full-service meals was offset by the index for food at employee sites and schools, which continued to fall, dropping 6.4 percent in September. *********************************************************************************** “Fields of Corn” Photo Deadline Approaching Time is running out to get photos submitted for the “Fields of Corn” Photo Contest. It’s the eighth year of the annual photo contest that’s put on by the National Corn Growers Association. The deadline to submit photos is November 30. “We have had some great photos already submitted this year, and harvest is a great opportunity to snap a few more pictures while farmers are in the field and submit to the contest,” says NCGA Graphic Communications Manager Beth Musgrove. “The entries we get throughout the year tell the story of agriculture and rural America and show how the crop progresses during the season.” New categories to the contest this year include “equipment” and “bird’s eye view.” A total of 26 cash prizes will get awarded during the contest. Fields of Corn was launched in 2014 to help tell the story of farming field corn in America. Since the contest began, NCGA has collected more than 2,000 photos across ten categories and awarded more than one hundred cash prizes. For more information on the contest and how to submit photos, go to www.fields-of-corn.com.
| Rural Advocate News | Friday October 15, 2021 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, along with a report on U.S. retail sales in September. Traders will pause at 8 a.m. to see if USDA has any more export sale announcements. The University of Michigan's early consumer sentiment index for October follows at 9 a.m. Weather A system will move along a front draped across the Midwest on Friday into early Saturday with scattered moderate showers. Recent rainfall across a good portion of the country this week has caused some delays for harvest. Cooler conditions have led to some of the first frosts from Nebraska northward as well. With cooler temperatures behind the front, it may take several days for fields to drain and harvest to start back up again for some areas.
| Rural Advocate News | Thursday October 14, 2021 |
Checkoff Unveils Undeniably Dairy Campaign Evolution to Reach Gen Z The dairy checkoff is launching a new wave of the Undeniably Dairy campaign to create deeper connections between Gen Z and dairy. "Reset Yourself with Dairy" is a youth-centric evolution of the checkoff's consumer campaign and will use various marketing strategies, including gaming, social media influencers and digital content, to engage with Gen Z to grow sales and trust of dairy. Launched Wednesday, the campaign centers on four aspects of dairy's wellness benefits that checkoff-led consumer research found resonates and drives purchase decisions with Gen Z. Those aspects are immunity, calm, energy and digestive health. Dairy’s role in offering wellness benefits will be featured on a variety of media channels. Anne Warden of Dairy Management Inc. says, “To compete in today’s environment, we will create big, disruptive moments that reassert dairy’s place in young people’s lives in a way that is in the social media and entertainment spaces they love and speaks their language.” *********************************************************************************** Pelosi Warns of Cuts to Build Back Better Act House Speaker Nancy Pelosi this week warned her party about the need to trim back the $3.5 trillion Build Back Better Act, the budget reconciliation bill. Pelosi told reporters, “I’m very disappointed we’re not going with the original $3.5 trillion,” adding, "But whatever we do we will make decisions that will continue to be transformative." The bill's price tag and policy scope are likely to be scaled back dramatically, according to the Washington Post. The proposal aims to expand Medicare, combat climate change, improve education, and offer new benefits to help families and children. Much of the spending is financed through new tax increases on corporations and the wealthy. For agriculture, the plan includes $66 billion in funding for research, biofuels and forestry management programs. The proposal also includes $28 billion for conservation and a $35 billion increase in child nutrition programs. Pelosi did not discuss details of the likely cuts to the bill. *********************************************************************************** Lawmakers Alert USTR of Chinese Influence in Latin America A group of 12 lawmakers recently penned a letter to the U.S. Trade Representative about the growing influence of the Chinese Communist Party in Latin America and Caribbean trade and economic development. Arkansas Republican Representative Rick Crawford announced the effort Wednesday. In a letter to Trade Representative Katherine Tai, the lawmakers asked for immediate attention to the issue. Crawford says China has now surpassed the United States and is the largest non-continental trading partner for 54 percent of South America. The lawmakers say the recent increase of engagement in the Western Hemisphere is a great cause for concern, given China's publicized strategy of becoming a world superpower and dominating the economic stage. The lawmakers jointly write, "Before long, China will be significantly positioned to completely dominate Western Hemisphere economics," adding, "We believe that it is of the highest priority for the U.S. to keep its relationships strong with our neighbors in the Western Hemisphere.” *********************************************************************************** Growth in Tractor, Combine Sales Continues to Outpace 2020 Overall sales of tractors and combines continue their growth above an already-hot pace set in 2020, according to the Association of Equipment Manufacturers. U.S. total farm tractor sales climbed 2.5 percent in September compared to 2020, while U.S. combine sales jumped 34.6 percent, the third month in a row of growth near or above 20 percent for harvesters. The sub-40 horsepower category stayed moderately positive, growing 0.4 percent, while the mid-size 41-100 horsepower segment was up 2.4 percent. Heavy-duty units saw another big month, with 100-plus horsepower units up 23 percent. However, the articulated 4WD segment slowed just 1.3 percent. Year-to-date farm tractor sales remain up 12.2 percent, and combines growth moved up to 17.3 percent. For Canada, September monthly tractor and combine sales were mostly positive as well, with both tractors and combines finishing the month in the black. AEM’s Curt Blades adds, “Year-to-date, every segment is up double-digits over last year.” *********************************************************************************** Project Focuses on Diversifying Midwest Farms Two Iowa State University researchers will join a five-year project that seeks to make Midwestern agriculture more resilient by moving away from the dominant corn-soybean rotation. The $10 million project is funded by the USDA National Institute of Food and Agriculture. Iowa State joins Purdue University researchers, who say, "Growing only a rotation of corn and soybeans is not necessarily sustainable economically, environmentally or socially." The project will work with farmers in Indiana, Illinois and Iowa to evaluate alternative cropping systems that can be used in the Midwest. Researchers will evaluate small grains and forage crops in rotations, perennial forage or bioenergy crops, agroforestry, horticultural food crops and grazed livestock. The research proposal received letters of support from farmers, industry organizations, academic institutions, food companies and environmental organizations. Iowa State's J. Arbuckle says, "The project will focus on facilitating diversification that leads to greater economic stability for farmers and agroecological system resilience." *********************************************************************************** Dry Conditions Persist in Upper Missouri River Basin September precipitation was once again below average in the Missouri River Basin as drought plagues much of the western half of the nation. September runoff in the Missouri River Basin above Sioux City, Iowa, was 0.8 million acre-feet, 67 percent of the long-term average. Soil conditions in the upper Basin continue to be very dry. Approximately 88 percent of the Missouri River basin is currently experiencing some form of drought, which is a six percent increase from August. The Army Corps of Engineers expects runoff to remain low through the remainder of the year. The 2021 calendar year runoff forecast for the upper Basin, updated on October 1, is 14.8 million acre-feet, 57 percent of average. Average annual runoff for the upper Basin is 25.8 million acre-feet. If realized, the runoff amount would be the tenth-lowest runoff in 123 years of record-keeping. The Corps of Engineers maintains that navigation flows will be supported through December 1.
| Rural Advocate News | Thursday October 14, 2021 |
Thursday Watch List Markets If you're looking for USDA's weekly export sales report Thursday morning, you'll have to wait one more day as Columbus Day resulted in schedule changes this week. U.S. weekly jobless claims will be out at 7:30 a.m. CDT, along with a report on U.S. producer prices and an update of the U.S. Drought Monitor. The U.S. Energy Department will have its report of natural gas storage at 9:30 a.m. CDT, followed by weekly energy inventories at 10 a.m. Traders remain interested in weather forecasts and any news of an export sale. Weather The front to this week's system is stalling from the eastern Midwest back through Texas. This front remains active on Thursday with scattered showers and thunderstorms that could become severe and cause additional moderate to locally heavy rainfall. Other areas to the west of this front are trying to recover from the large storm system that moved through and is now in central Canada.
| Rural Advocate News | Wednesday October 13, 2021 |
U.S. Corn and Soybean Production up From September Corn and soybean production is up from September 2021, according to the Crop Production report issued Tuesday by USDA's National Agricultural Statistics Service. Corn production is up three percent from last year, forecast at 15.0 billion bushels, and soybean growers are expected to increase their production five percent from 2020, forecast at 4.45 billion bushels. Meanwhile, USDA's monthly World Agriculture Supply and Demand report calls for slightly increased corn exports, lower feed and residual use, and larger ending stocks. The season-average corn price received by producers is unchanged at $5.45 per bushel. Meanwhile, soybean yield is projected at 51.5 bushels per acre, up 0.9 bushels from the September forecast. The U.S. season-average soybean price for 2021/22 is forecast at $12.35 per bushel, down 55 cents reflecting larger supplies. Finally, the outlook for wheat this month is for reduced supplies, lower domestic use, unchanged exports, and decreased ending stocks. The season-average price increased ten cents per bushel to $6.70. *********************************************************************************** USDA Launches First Phase of Soil Carbon Monitoring Efforts through CRP The U.S. Department of Agriculture is investing $10 million in a new initiative to sample, measure, and monitor soil carbon on Conservation Reserve Program acres. The investment seeks to better quantify the climate outcomes of the program. USDA says CRP is an important tool in the Nation’s fight to reduce the worst impacts of climate change facing our farmers, ranchers, and foresters. This initiative will begin implementation in fall 2021 with three partners. The announcement is part of a broader, long-term soil carbon monitoring effort that supports USDA’s commitment to deliver climate solutions to agricultural producers and rural America through voluntary, incentive-based solutions. USDA partners will conduct soil carbon sampling on three categories of CRP practice types: perennial grass, trees, and wetlands. The three Climate Change Mitigation Assessment Initiative projects are funded through FSA’s program to work with partners to identify Monitoring, Assessment and Evaluation projects to quantify CRP environmental benefits to water quality and quantity, wildlife, and rural economies. *********************************************************************************** USTR Tai Meets with Chinese Counterpart U.S. Trade Representative Katherine Tai met with a Chinese counterpart last week before meetings this week with Italy and a European Commission official. Tai held a virtual meeting with China's Vice Premier Friday, to discuss the U.S.-China trade relationship. During their exchange, the duo recognized the importance of the bilateral trade relationship and its impact not only on the United States and China but also the global economy, according to a USTR statement. Additionally, Ambassador Tai emphasized U.S. concerns relating to China’s state-led, non-market policies and practices that harm American workers, farmers and businesses. Left off the table was discussion around a Phase Two agreement with China. Meanwhile, Tai participated in the G20 Trade and Investment Ministerial in Italy Tuesday and is also conducting meetings with World Trade Organization members this week. Tai will also appear in Switzerland this week to give a speech at an event hosted by the Graduate Institute's Geneva Trade Platform. *********************************************************************************** Shipping Container Rates Easing Container shipping rates are showing signs of easing, at least temporarily. On the Shanghai-to-Los Angeles trade route, the rate for a 40-foot container fell nearly $1,000 last week to $11,173, an 8.2 percent drop from the prior week, according to Bloomberg. Ocean freight, however, remains more expensive than it was pre-pandemic, and air cargo rates remain elevated. And, as Bloomberg put it, it’s anyone’s guess if these latest declines in global shipping costs mark the beginning of a plateau, a seasonal turn lower or the start of a steeper correction. Judah Levine, of Hong Kong-based Freightos says that, among other signals, “the price drop also shows that the peak of peak season is behind us.” Regardless, shippers and ports remain in a logjam on the U.S. West coast, with 60 vessels waiting to offload over the weekend. The average wait time is 11 days or longer, compared to an eight-day wait back in April. *********************************************************************************** NOAA Awards More Than $171 Million for Climate Science The National Oceanic and Atmospheric Administration announced Tuesday $171 million to support 72 projects to improve resilience in the fight against the climate crisis. NOAA's Climate Program Office announced the funding, the highest five-year investment in the program's history. This year’s funding is supporting a broad spectrum of research areas that include advancing environmental justice, improvements in climate models and advances in the understanding of ocean observations. Additionally, the projects focus on understanding how the COVID-19 pandemic affected local and regional air quality, advances in resilience planning for future flooding impacts, and studying how emissions and chemical reactions impact air quality and climate. Over the next one to five years, researchers will work on the newly-funded projects in close partnership with NOAA laboratories and research centers. NOAA administrator Rick Spinrad comments, “These new NOAA investments are essential to improve understanding of how to mitigate these impacts and bolster community resilience to climate change.” *********************************************************************************** Nutrient Management Strategies to Headline Virtual Farmer Meeting Farmers and landowners are encouraged to join their peers from Maryland's Catoctin Creek Watershed on October 22 for a free virtual event. The event focuses on incorporating conservation agriculture and soil health practices to create stronger farm businesses and includes a virtual dairy farm tour. Mike McMahon will host the webinar, a winner of the Innovation Center for U.S. Dairy's 2018 U.S. Dairy Sustainability Award. Additional hosts include USDA's Natural Resources Conservation Service in Maryland, Farm Journal Foundation, and Farm Journal's Trust In Food initiative. Using a combination of video and live streaming, McMahon will illustrate his operation’s conservation ag investments and share insights about how other farmers can increase their operations' sustainability and profitability. The event includes updates on soil health and manure management innovation in the ag equipment market from a panel of directors and executives from the Association of Equipment Manufacturers. Farmers can register at farmjournal.com
| Rural Advocate News | Wednesday October 13, 2021 |
Wednesday Watch List Markets Wednesday morning will find traders still considering USDA's latest round of estimates, checking the weather forecasts and watching for any news of an export sale. The U.S. Labor Department's report on September consumer prices is set for 7:30 a.m. CDT and is likely to show an increase in energy prices. The U.S. Energy Department's weekly report of energy inventories is pushed to Thursday as a part of this week's federal holiday schedule. The Federal Reserve will release minutes from its latest FOMC meeting at 2 p.m. CDT. Weather A strong storm system is moving through the Northern Plains with a shield of moderate to heavy rain and snow and a cold front that continues scattered showers across the Central and Southern Plains and into the western Midwest. This system is not only making an impact with precipitation, but strong winds are also noted for a good portion of the Northern Plains and Upper Midwest as well Wednesday, along with a couple of bouts of severe weather along the cold front. Widespread freezes have settled in across the West and will leak into the Plains as well.
| Rural Advocate News | Tuesday October 12, 2021 |
Supply Chain Issues to Persists into 2022 A quarterly report from CoBank suggests that while the U.S. economy is still very much in the grips of the pandemic. Supply chains are arguably in the most dire condition since the start of the pandemic, as lead times for manufacturing inputs recently reached record highs. Persistent supply chain disruptions and labor shortages are adding significant costs to businesses and consumers. A CoBank researcher suggests, “Supply chain snarls are likely to persist well into 2022, and so will elevated inflation.” Rapidly rising input costs and product shortages are hitting agriculture, as commodity prices have flattened, and inflation compresses margins. However, robust exports have kept much of agriculture in the black. CoBank says corn, soybean and wheat prices declined from their third-quarter highs, but will likely rebound due to tight supplies and improving demand. Returning demand from foodservice led to strength to U.S. meat and poultry. However, inflation is expected to test consumers' appetite for meat during the fourth quarter. *********************************************************************************** AFBF Forms Partnership with MANRRS The American Farm Bureau Federation and the National Society for Minorities in Agriculture, Natural Resources, and Related Sciences announced an agreement to increase minority involvement in agriculture. The groups signed a memorandum of understanding for collaboration on projects. The projects include written content for each organization's publications, providing leadership training and expertise, and cross-promoting programs and events. AFBF President Zippy Duvall says, "We believe the partnership we're forming today will benefit both of our organizations and all of agriculture." Dr. Olga Bolden-Tiller, President of the National Society of MANRRS, adds the partnership will ensure "all of the voices of the agricultural community are heard as we work together to develop a well-trained workforce." The partnership is a continuation of AFBF's goal to expand coalitions and alliances to increase the effectiveness of its grassroots organization. Other partnerships include FFA and 4-H, which foster the growth of young people interested in pursuing careers in agriculture. *********************************************************************************** USDA Commits $25 Million for Programs reaching Underserved Communities The Department of Agriculture last week announced a trio of awards totaling nearly $25 million in grants and cooperative agreements. The funding seeks to ensure broader access and participation in USDA programs and services for historically underserved farmers and ranchers. The effort is the latest in a series of announcements around USDA's commitment to root out generations of systemic racism, center equity in decision-making and policymaking, lower barriers to access and ensure USDA programming is inclusive of all employees and all customers. One set of awards announced Friday includes $18.6 million in grants to provide training, outreach, and technical assistance to historically underserved and veteran farmers and ranchers in 21 states through USDA's 2501 Program. Additionally, USDA's Farm Service Agency is awarding $4.7 million to organizations for projects that will provide historically underserved producers with improved access and technical assistance as they apply for and FSA programs and services. *********************************************************************************** USDA Investment to Strengthen Hispanic-Serving Higher Education The Department of Agriculture recently announced $12 million for Hispanic-serving Institutions of higher education. The announcement last week was part of a launch of the first in a series of virtual roundtable engagement sessions with Minority-serving Institutions and Land-grant Universities serving underrepresented students. The funding is part of USDA's National Institute of Food and Agriculture's Hispanic-serving Institutions Education Grants Program. It includes investments in Arizona, California, Colorado, Florida, New Mexico, New York, Oregon, Puerto Rico and Texas. As part of the funding, California State University, Long Beach, will use $975,000 for its "Leveraging Interdisciplinary Nutritional Knowledge" Program. The program aims to support undergraduate and graduate students in the food and human sciences professional and scientific workforce. Texas A&M, Kingsville, will use its $975,000 grant to support its Getting Occupational Student Training in Agricultural Research Through Novel Workshops project. Through this project, students are exposed to experiential-based learning and partnerships with USDA researchers. *********************************************************************************** McDonald's Seeks net Zero Emissions by 2050 McDonald's Corporation recently announced a commitment to achieve net-zero emissions across its global operations by 2050. The company is joining the United Nations Race to Zero campaign and signing on to the Science Based Targets initiative's Business Ambition for 1.5°C campaign. McDonald's will increase the emissions reduction levels in its existing 2030 science-based target and will set a long-term reduction target to reach net-zero emissions. Efforts underway since 2018 have already resulted in an 8.5 percent reduction in the absolute emissions of restaurants and offices and a 5.9 percent decrease in supply chain emissions intensity against a 2015 baseline. McDonald's says a world with lower greenhouse gas emissions will result in more favorable conditions for farmers and ranchers. Efforts by the company to meet the goal include reducing emissions in its supply chain, empowering employees to innovate and use locally tailored solutions, and offer insights to others to reduce emissions in forest, land and agriculture. *********************************************************************************** Oil Prices Reach 7 Year High, Gas Prices Surge Oil prices reached a seven-year high last week, pushing fuel prices higher. The national average price of gas jumped 5.2 cents to $3.25 a gallon, and the price of diesel increased 10.4 cents to $3.45 a gallon, according to GasBuddy. Gas prices were pushed to their highest since 2014, all on OPEC’s decision not to raise production more than it already agreed to in July. GasBuddy’s Patrick De Haan says, “The OPEC decision caused an immediate reaction in oil prices, and amidst what is turning into a global energy crunch, motorists are now spending over $400 million more on gasoline every single day than they were just a year ago.” De Haan adds the problems continue to relate to a surge in demand as the global economy recovers, combined with deep cuts to production from early in the pandemic. With OPEC last week deciding against an additional rise in oil production to meet rising demand, supply will likely remain tight.
| Rural Advocate News | Tuesday October 12, 2021 |
Tuesday Watch List Markets Four USDA reports are on Tuesday's docket, starting with weekly grain export inspections at 10 a.m. CDT. USDA's WASDE and Crop Production reports are both due out at 11 a.m. CDT, followed by Crop Progress at 3 p.m. Traders will continue to keep an eye on the latest weather forecasts and watch for any news of an export sale that might emerge. Weather A strong system that is already producing snow in the front range of Montana and Wyoming will develop a strong low in Colorado later Tuesday. This will cause showers and thunderstorms to spring up across the Plains later Tuesday and especially Tuesday night. Some thunderstorms across the Southern Plains may be severe and winds may be breezy in the Plains as well. Heavy rainfall amounts will continue with this system as it spreads north and east through Wednesday as well, causing harvest delays but improving soil moisture for winter wheat.
| Rural Advocate News | Monday October 11, 2021 |
USDA Considering Waivers for Slower Pork Plant Processing Lines Ag Secretary Tom Vilsack says the USDA is working on a proposal for a waiver system for hog plants forced by a federal court to slow down their processing lines. Waivers that would allow plants to speed up processing lines again could renew concerns about worker safety but boost profits for pork companies and farmers. Vilsack didn’t specify what those waivers would do or how they would get implemented. A federal judge ruled earlier this year against the Trump administration rule that allowed pork plants to run slaughter lines without speed limits, as long as they prevented contamination and minimized bacteria. Reuters says the United Food and Commercial Workers Union had challenged the 2019 rule because of worker safety issues. The Biden administration’s USDA didn’t appeal the ruling. However, the agency is now looking at ways to allow more adequate processing speeds but doing so without endangering worker health and safety. Vilsack told a Congressional hearing that USDA is working with the pork industry and workers’ representatives on the issue. Seaboard Foods sped up its plant in Oklahoma last year, becoming the first company to operate under the 2019 rule. Before the rule change, six other U.S. pork plants had bypassed previous speed limits with special USDA permission. *********************************************************************************** House Ag Committee Dems Want Ag Spending Preserved House Ag Committee Chair David Scott and fellow Democrats sent a letter to House and Senate leadership asking them to preserve the ag spending provisions in the Build Back Better Act. They point out that the provisions included in the agriculture portion of the Build Back Better Act will make transformative investments that will benefit agricultural producers and rural communities for years in areas of agricultural research, rural development, renewable energy, biofuels, conservation, and forestry. “America has been the world leader in agricultural research and innovation, but that position is at risk if we do not make key investments in research and education programs,” they say in the letter. The Democrats also note that the funding provided for climate-smart agricultural practices will help address the fact that the current farm bill conservation programs are already oversubscribed, with continuing backlogs that show the demand from producers and landowners who are willing to undertake efforts to reduce greenhouse gas emissions and rebuild soil carbon. “We encourage you to keep these crucial investments in place, and we look forward to furthering discussions on the importance these investments will have, especially as we prepare to write the next Farm Bill,” they added. *********************************************************************************** Torres Small Confirmed as Undersecretary for Rural Development The U.S. Senate confirmed Congresswoman Xochitl (So-CHEEL) Torres Small as the USDA’s Undersecretary for Rural Development. “As Undersecretary for Rural Development Xochitl Torres Small will build on her legacy as a champion for small towns and rural communities, much like the one she grew up in in New Mexico,” says Senate Ag Chair Debbie Stabenow. “She will give voice to 60 million rural Americans at the highest levels of USDA, and I look forward to working with her to address critical rural needs including high-speed internet, infrastructure, and good-paying jobs.” Ranking Senate Ag Committee Member John Boozman says that while the committee handles a wide range of issues, everything they do boils down to improving the livelihoods and future for those who call rural America home. “There are many pressing challenges facing our rural communities that we must work together to address,” he says. “I congratulate Undersecretary Torres Small and am ready to work with her to expand access to affordable high-speed broadband, ensure continued access to reliable energy production, improve water infrastructure, and create new economic opportunities in rural America.” *********************************************************************************** Ethanol Export Numbers Good Despite COVID-19 The numbers for the most recent marketing year that ended on August 31 show there is good news for U.S. ethanol exports. U.S. ethanol exports reached the fifth-highest total on record despite the market challenges brought on by COVID-19. Exports were down eight percent from the previous marketing year, reflecting the challenges that COVID restrictions had on fuel demand and trade. The first half of the year’s exports occurred before the widespread stay-at-home orders were issued that drastically lowered fuel demand around the world. “The lingering effects of COVID-19 stay-at-home orders were reflected in the global ethanol trade in the most recent marketing year,” says Brian Healy, director of global ethanol market development for the U.S. Grains Council. “Looking forward, more aggressive blend rates that have already been set, or will need to be set, to meet emissions reduction goals, will support increased global ethanol demand and trade.” The USGC says Canada was the top export market for U.S. ethanol over the previous marketing year as fuel demand recovered after being down approximately 14 percent during the previous marketing year. India and South Korea round out the top three market destinations for U.S. ethanol exports. *********************************************************************************** Biden Administration Can’t Get Conservation Win “On Paper” The National Cattlemen’s Beef Association and the Public Lands Council criticized the Biden administration’s unilateral designations on national monuments in Utah. The administration put sweeping federal designations on millions of acres surrounding the Bears Ears National Monument and the Grand Staircase-Escalante National Monument. After months of rhetoric on their intent to work collaboratively with state governments and local communities, the administration opted to make these designations rather than create a conservation strategy that would incorporate local stakeholder input and avoid the “management whiplash” of a unilateral federal designation. By ignoring efforts to reach a permanent solution, the administration prolonged the back-and-forth political football that occurs with national monument boundaries during each change of administration. “Conservation is more than signing a piece of paper,” says PLC Executive Director Kaitlynn Glover. “It requires long-term planning, active management, the help and investment of knowledgeable land users, local residents, and state leaders who perform the day-to-day work of maintaining landscapes and ecosystems.” She also says these designations only win conservation points “on paper.” The reality is much different. “They will lead to the kind of conservation strategy that we know from experience does not support healthy ecosystems long-term,” she adds. *********************************************************************************** Vaccine Requirement Won’t Close FSA Offices The Biden Administration’s requirement that all federal employees, including the employees of the Farm Service Agency, be vaccinated against COVID-19 will not cause FSA offices to close or farmers to receive a less-than-usual level of service. The Hagstrom Report says Ag Secretary Tom Vilsack made that statement last week during a House Agriculture Committee hearing. Representative Vicki Hartzler of Missouri mentioned to the secretary that she’s afraid the reluctance of some employees to get the vaccine might cause FSA offices to close, or at worst, have to provide a lower level of service than farmers have come to expect. She asked Vilsack if he had considered exemptions to the vaccine requirement, to which the secretary said there are exemptions for both religious and health reasons. Vilsack also said during the hearing that, “We will do what we need to do to keep offices open. I don’t anticipate we will see a significant number of closed offices.” Vilsack made the comments while testifying at a hearing on the state of the livestock industry, where he presented testimony on USDA’s efforts ranging from developing an African Swine Fever vaccine to the assistance available for producers and companies affected by COVID-19.
| Rural Advocate News | Monday October 11, 2021 |
Monday Watch List Markets Monday is Columbus Day and federal offices are closed, along with some banks. Ag futures markets are open, as usual, and traders will be checking the latest weather forecasts with storms threatening to interrupt harvest this week. USDA's weekly reports of grain export inspections and Crop Progress will be released Tuesday, the same day USDA will release its Crop Production and WASDE reports for October. Weather A system is leaving the Southern Plains and heading northeast through the Midwest on Monday. The system is carrying scattered showers and pockets of moderate rainfall. Some severe weather will be possible centered around Illinois later in the day. The Plains will only have a brief day to dry out from weekend rainfall before the next system develops on Tuesday. It is getting more difficult to harvest while the rainfall is good for winter wheat areas.
| Rural Advocate News | Friday October 8, 2021 |
Global Food Prices Up 32 Percent Since September 2020 Global food prices are 32.8 percent higher compared to September of last year, the Food and Agriculture Organization of the United Nations reports. The Monthly Food Price index average 130 points in September 2021, up 1.2 percent from last month, also reaching a ten-year high. The increase was largely driven by higher prices of most cereals and vegetable oils. Dairy and sugar prices were also firmer, while the meat price sub-index remained stable. The Cereal Price Index averaged 132.5 points in September, up 2.6 points from August and 28.5 points above its level of September 2020. Among the major cereals, world wheat prices increased the most in September, up almost four percent from August and in some cases 41 percent on the year. The Vegetable Oil Price Index averaged 168.6 points in September, up 2.9 points, while the Dairy Price Index averaged 117.9 points in September, up 1.7 points from August. The Meat Price Index averaged 115.5 points in September, virtually unchanged from August and 24.1 points above its value a year ago. *********************************************************************************** August Beef Exports Top $1 Billion; Pork Exports Remain on Record Pace U.S. beef exports soared to another new value record in August, topping the $1 billion mark for the first time. The U.S. Meat Export Federation reports pork exports posted another strong month in August as well, remaining ahead of the record pace established in 2020. Led by record shipments to China and the largest exports of the year to Japan, August beef exports totaled 132,500 metric tons. Export volume was up 21 percent from a year ago, while export value climbed 55 percent to $1.04 billion. For January through August, beef exports increased 18 percent from a year ago to 955,400 metric tons, with value up 34 percent to $6.6 billion. Pork exports totaled 225,800 metric tons in August, up four percent from a year ago, and value increased 20 percent to $633.9 million. For January through August, exports were 1.5 percent above last year at just over two million metric tons, while value climbed ten percent to $5.62 billion. *********************************************************************************** EPA Announces Appointment of Rod Snyder as EPA Agriculture Advisor The Environmental Protection Agency announced Thursday the appointment of Rod Snyder to become EPA’s Agriculture Advisor. Snyder will lead outreach and engagement efforts with the agricultural community for EPA, working to advance the Biden-Harris environmental agenda for farmers and rural communities. Snyder is nationally recognized for his leadership at the intersection of agricultural and environmental policy, and joins the agency after serving as president of Field to Market: The Alliance for Sustainable Agriculture. House Agriculture Committee Chair David Scott says of the appointment, “I know that he will be a valuable member of the Administrator’s senior leadership team.” American Farm Bureau Federation President Zippy Duvall adds he is confident Snyder “will be a strong advocate” for engagement and collaboration. Before his time at Field to Market, Snyder worked for the National Corn Growers Association and CropLife America. In 2015, Snyder co-founded the Sustainable Agriculture Summit, which has grown to be the largest and most prominent annual sustainable agriculture conference in North America. *********************************************************************************** Farmer-led Coalition Advancing $100/acre Climate Policy Plan Rural Investment to Protect our Environment, known as RIPE, seeks to reward farmers for voluntary stewardship through the RIPE100 plan. The farmer-led nonprofit seeks to pay farmers $100 per acre, rewarding farmers for the total public value of their conservation practices. In addition to carbon sequestration, the voluntary federal program would pay for improved soil health, cleaner water, biodiversity and other environmental services. Brandon Hunnicutt, RIPE steering committee chair and Nebraska farmer says, "This is a first-of-its-kind policy that will help farmers invest in environmental improvements while mitigating the risk of implementing a new practice." The organization is advancing the policy plan, that will ensure that climate policy does not negatively affect farmer profitability. RIPE payments would surpass the full cost of practice implementation and input cost increases from climate policy. RIPE is a coalition of farmers, ranchers, and agricultural trade association representatives advancing a national dialogue for climate policy that integrates fair and forward-looking agricultural solutions. *********************************************************************************** USDA Announces Plan to Integrate Climate Adaptation Into its Missions and Programs As part of an Administration-wide rollout, the Department of Agriculture Thursday released its climate adaption and resilience plan. The plan describes how USDA will prepare for current and future impacts of climate change. Agriculture Secretary Tom Vilsack claims the plan “lays out the framework for USDA to carry out sustained climate adaptation that addresses current and emerging climate risks and challenges.” The Adaptation Plan identifies key climate threats to agriculture and forestry and outlines five cross-cutting adaptation actions USDA can take, including increasing outreach and education to promote adoption and application of climate-smart strategies. USDA also seeks to broaden access to and availability of climate data at regional and local scales, and increase support for research and development of climate-smart practices and technologies. Finally, the plan will leverage the USDA Climate Hubs as a framework to support USDA Mission Areas in delivering adaptation. The plan is one of 20 developed by the Biden Administration. *********************************************************************************** USDA Awards $248 Million for International School Feeding Projects The Department of Agriculture will invest $248 million in ten new school feeding projects expected to benefit more than a million children worldwide. Deputy Secretary of Agriculture Jewel Bronaugh (Bruh-NAW) announced the investment Thursday. USDA’s 2021 commitment, through the Foreign Agricultural Service’s McGovern-Dole International Food for Education and Child Nutrition Program, includes both direct financial support and the donation of U.S.-grown commodities to be used in school meals. The ten new projects USDA is funding in 2021 are in addition to 40 projects already underway in 30 countries. Some of this year’s funding will go towards local procurement of agricultural commodities to supplement donated U.S. commodities, helping increase dietary diversity and build connections between project schools and local farmers. Through the McGovern-Dole Program, FAS works with development organizations and governments in developing countries to reduce hunger and improve literacy and primary education. Since the program was established in 2002, it’s helped 31 million children in 51 countries.
| Rural Advocate News | Friday October 8, 2021 |
Friday Watch List Markets The U.S. Labor Department releases reports on nonfarm payrolls and unemployment rate for September at 7:30 a.m. CDT. Traders will continue to check the latest weather forecasts and watch for any news of an export sale. After a one-week holiday, China's markets resume trading Friday. Weather An upper-level low will continue to produce scattered showers across the Midwest down through the Southeast on Friday. Meanwhile, the first of a few storm systems will move into the Northern Plains late on Friday with increasing showers later in the day.
| Rural Advocate News | Thursday October 7, 2021 |
Exports Projected to Reach New High in Fiscal Year 2022 The total value of agriculture exports may reach an all-time high in fiscal year 2022, October through September. USDA's Economic Research Service says higher shipments of major categories of commodities, including grains and feeds, oilseeds, and livestock, poultry, and dairy products, are primarily driving the increase. Total U.S. agricultural export values are projected to reach $177.5 billion in fiscal year 2022, up from $173.5 billion in fiscal year 2021. Grains and feeds export values are projected up from their five-year average, reflecting higher international demand for corn, wheat, and feeds. Oilseeds are projected to reach a record $43.5 billion in fiscal year 2022. International demand for soybeans coupled with higher prices is projected to drive export values to a record high for fiscal year 2021 before increasing further in fiscal year 2022. Livestock, poultry, and dairy exports, which have averaged $29.5 billion from 2015 to 2020, are forecast to rise to $36.8 billion in fiscal year 2022. *********************************************************************************** USDA Announces Investment in Sustainable Agricultural Research Department of Agriculture Secretary Tom Vilsack announced Wednesday an investment of more than $146 million in sustainable agricultural research projects. The projects are aimed at improving a robust, resilient, climate-smart food and agricultural system. The investment comes from the National Institute of Food and Agriculture’s Sustainable Agricultural Systems program. The program focuses on a broad base of needed research solutions from addressing labor challenges and promoting land stewardship to correcting climate change impacts in agriculture and critical needs in food and nutrition. The funding is part of the third installment of NIFA grants within its Agriculture and Food Research Initiative's Sustainable Agricultural Systems program designed to improve plant and animal production and sustainability, and human and environmental health. Secretary Vilsack says, "Critical issues like food insecurity, drought resilience and response, animal disease prevention, and market disruption requires investments to help meet these challenges." The Agriculture and Food Research Initiative is the nation’s leading and largest competitive grants program for agricultural sciences. *********************************************************************************** FNS Invests Nearly $53 Million in SNAP Administration The Department of Agriculture’s Food and Nutrition Service awarded nearly $53 million to state and local agencies and partners to enhance the Supplemental Nutrition Assistance Program, or SNAP. The grants, released throughout August and September 2021, help ensure program operators and partners have the resources, support, and capacity to deliver SNAP benefits efficiently and effectively. Food and Nutrition Service administrator Cindy Long says, “SNAP represents a critical component of America’s food safety net – and now more than ever, we need to ensure that safety net is well-supported.” The grants focused on improving efficiency, program integrity, data and analysis, customer service, SNAP Employment and Training programs, and nutrition. Additionally, the grants include 3.7 million awarded to the National Association of Farmers’ Markets Nutrition Programs, a nonprofit that works with the farmers market community to support farmers interested in offering online payment using SNAP benefits. More than 42.3 million Americans rely on SNAP benefits to afford food. *********************************************************************************** USDA Introduces New Insurance Policy for Farmers Who Sell Locally The Department of Agriculture is rolling out a new insurance option specifically for agricultural producers with small farms who sell locally. The new Micro Farm policy, announced Wednesday, simplifies record keeping and covers post-production costs like washing and value-added products. USDA’s Risk Management Agency created the new policy based on research directed by the 2018 Farm Bill, and it includes feedback from producers who grow for their local communities. The policy will be available beginning with the 2022 crop year. The new policy is offered through Whole-Farm Revenue Protection, and it has distinct provisions that can provide more access to the program. The Micro Farm policy is available to producers who have a farm operation that earns an average allowable revenue of $100,000 or less, or for carryover products, an average allowable revenue of $125,000 or less. RMA's research showed that 85 percent of producers who sell locally made less than $75,000 in gross sales. *********************************************************************************** Report: Government Interference in Cattle Markets has Consequences Texas A&M University has completed a comprehensive report on the U.S. cattle and beef markets in response to a bipartisan request from the House Agriculture Committee. Among its key findings is that proposals increasing government intervention and mandates will cost livestock producers billions of dollars. The House Agriculture Committee holds its fourth hearing of the year on cattle markets Thursday (today). North American Meat Institute President and CEO Julie Anna Potts says the report aligns with testimony in each of the hearings that “supply and demand have the most influence on the price of cattle.” The analysis is a 180-page book that looks at mandates included in proposed legislation to require minimum negotiated cash market purchases. Researchers claim the short-term impact of similar policy is a $2.5 billion negative impact in the first year and a cumulative negative impact of $16 billion over ten years, inflated to 2021 dollars. *********************************************************************************** R-CALF Issues Statement on OFF Act to Reform Checkoff Programs This week, R-CALF welcomed the introduction of the Opportunities for Fairness in Farming Act, or OFF Act. The OFF Act will reform all checkoff programs, including the beef checkoff program, and was introduced by lawmakers last week in both the House and Senate. Senate Republicans Mike Lee of Utah, and Rand Paul of Kentucky joined Democrats Cory Booker of New Jersey, Elizabeth Warren of Massachusetts and Kristen Gillibrand of New York to introduce the bill. House Democrat Dina Titus of Nevada joined Republican Nancy Mace of South Carolina to introduce a companion bill. Specifically, R-CALF takes aim at the National Cattlemen’s Beef Association, which reportedly receives nearly 82 percent of its revenue from checkoff funds. Efforts to secure a producer referendum vote have failed throughout the Beef Checkoff program's 35-yearlong history, and an R-CALF Representative says, "This is an example of how producer-funded checkoff programs have evolved into mandatory government programs with little to no producer guidance or representation.”
| Rural Advocate News | Thursday October 7, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as U.S. jobless claims and the weekly update of the U.S. Drought Monitor. Traders will pay attention the Department of Energy's weekly report of natural gas in storage at 9:30 a.m., as well as the latest weather forecasts and any news of an export sale. China's markets are set to return from holiday on Friday. Weather An upper-level low in Missouri will continue to drift northward on Thursday, spreading showers through the Midwest and continuing them in the Southeast. Some delays to harvest will be possible while the rest of the country sees mostly favorable harvest conditions.
| Rural Advocate News | Wednesday October 6, 2021 |
September Ag Economy Barometer Reveals Decline Sentiment among agricultural producers weakened in September as the Ag Economy Barometer declined 14 points to a reading of 124. This is the weakest farmer sentiment reading since July 2020, when the index stood at 118. Producers were less optimistic about current and future conditions on their farms and the agricultural sector than a month earlier. There was a sharp rise in farmers' expectations regarding farm input price inflation with more than one-third of respondents expecting input prices to rise by more than 12 percent in the upcoming year. Farmer optimism about future growth in agricultural exports continues to wane, and that, combined with concerns about a squeeze on operating margins, could be contributing to weakness in farmer sentiment. Farmers do, however, remain bullish about farmland values. The Purdue University-CME Group Ag Economy Barometer sentiment index is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. *********************************************************************************** Barchart Cuts Crop Production Forecasts and Yield Barchart, an agricultural data service and technology provider, released its October 2021 Yield and Production forecasts for U.S. and Canadian field crops. The latest report indicates a decrease in U.S. crop production for corn, soybeans, and hard red winter wheat and a decrease in Canadian production forecasts for spring wheat and soybeans. U.S. corn production is forecasted at 15.3 bushels with a yield of 182.3 bushels per acre, compared to last month's 183.4 and USDA’s forecast of 15.0 billion bushels of production and a yield of 176.3 bushels per acre. Barchart pegs U.S. soybean production at 4.4 billion bushels on an average yield of 51.3 bushels per acre compared to last month's 51.6, similar to USDA’s forecast with a slightly higher yield. The company projects U.S. Hard Red Winter Wheat yields at 45.5 bushels per acre. Meanwhile, Canadian Spring Wheat production is pegged at 746.5 million bushels, and soybeans at 223.1 million bushels, with a 40.0 bushels per acre yield. *********************************************************************************** FARM Act Seeks oversite on Foreign Ag Farmland Investments Lawmakers Tuesday introduced the Foreign Adversary Risk Management or FARM Act. The legislation seeks to combat foreign interference in America's agriculture supply chain through reforms to the Committee on Foreign Investment in the United States. Texas Republican Representative Ronny Jackson and Texas Democrat Filemon Vela introduced the legislation in the House. Senator Tommy Tuberville, an Alabama Republican, introduced companion legislation in the Senate. The bill would add the Agriculture Secretary to the Committee on Foreign Investment, an interagency committee authorized to review certain foreign investment transactions, and designate agriculture as critical infrastructure. Texas Farm Bureau President Russell Boening welcomed the legislation, commenting, “As Texas has experienced a surge of foreign investors buying agricultural land, it is critical that proper oversight is provided to ensure our national security.” Foreign investment in the U.S. agriculture industry has grown rapidly, as foreign investors currently control at least 28.3 million acres of agricultural land valued at $52.2 billion. *********************************************************************************** More States See Record Land Prices Many states are experiencing record land prices across the Midwest. Aggressive bidding continued into summer and the fall selling season, with new high prices often being reached in Iowa. But the land market is also strong in most other crop regions. Farmers National Company recently sold a client's land in northeast Nebraska at a simulcast auction for $12,950-$13,400 per acre, which would be very strong sales if not records for the county. Another recent sale in Nebraska brought $14,000 per acre for non-irrigated cropland. Other states are seeing strong land prices continue into the fall. As farmers and investors bid for the land, Kansas, South Dakota, Illinois, and Indiana are experiencing strong prices for good cropland. Lower quality land is also seeing strength, with sales prices far surpassing expectations in many areas. Land sale activity in the grain belt slows during the heart of harvest. However, auctions and sales will pick up steam again in late October and November. *********************************************************************************** ISU Research Suggests Reducing Fall Fertilizer Applications Research from Iowa State University shows during drought years like this one, there is higher than normal nitrogen stored in soils. Shawn Richmond, Environmental Services Director at the Agribusiness Association of Iowa, explains, “Fertility decisions are always important, but especially so following drought conditions.” Richmond encourages farmers to work with their ag retail partners to consider soil testing for nitrogen, reduce rates of fall fertilizer application and consider split rate of spring applications instead. Cover crops can also help scavenge and hold onto excess nitrogen in the soil, making it available for the following crop instead of being lost through runoff or leaching. The comments were made on WHO radio and promoted by 4R Plus, a coalition of Iowa agricultural and conservation organizations, as part of the Clean Water in Iowa Starts Here Campaign. Farmers and their advisors can learn more about conservation practices, like cover crops, by visiting 4RPlus.org. *********************************************************************************** EPA Announces $21.7 Million in Grant Funding for Rural Water Projects The Environmental Protection Agency expects to issue by October 15 a $21.7 million grant funding opportunity to support small drinking water and wastewater systems in rural communities. EPA Assistant Administrator for Water Radhika (rad-ee-kah) Fox comments that through the program, "EPA is able to meet the specific needs of small drinking water and wastewater systems to help improve water quality." The EPA says small water systems often face unique financial and operational challenges, including aging infrastructure, workforce shortages, increasing costs, and declining rate bases. EPA anticipates the funding opportunity announcement will solicit projects that provide training and technical assistance to small public water systems, small wastewater systems, and private well owners across the country. Eligible applicants are expected to be nonprofit organizations, nonprofit private universities and colleges, and public higher education institutions. Applicants will have 60 days to apply, and EPA expects to award cooperative agreements by Spring 2022.
| Rural Advocate News | Wednesday October 6, 2021 |
Wednesday Watch List Markets Investors will take note of ADP's estimate of U.S. private sector jobs for September at 7:15 a.m. CDT, a possible hint to Friday's unemployment report. With energy prices on the rise, the U.S. Energy Department's weekly inventory report will get close attention, including last week's ethanol production. As usual, traders will check the latest weather forecasts and watch for any news of an export sale. Weather An upper-level low in the Delta will slowly drift northward over the next several days and the scattered showers we have been seeing in the Southeast will follow it northward through the Midwest. Showers could produce some delays to harvest where they hit. Otherwise, it is another good day for harvest in the Plains and most of the Midwest.
| Rural Advocate News | Tuesday October 5, 2021 |
U.S. Trade Rep Tai Completes Review, Offers Steps Forward on China The Biden Administration has completed a months-long review of the U.S. trade relationship with China. Pointing out that the previous administration’s unilateral approach alienated allies and trading partners while hurting large sections of the economy, the administration says it took a more deliberate, long-term look at the relationship. The administration announced the four steps it will take to realign America’s trade policies towards China around U.S. priorities. First, they plan to discuss with China its performance under the Phase One Trade Agreement, pointing out that China made commitments that benefit certain industries like agriculture and must be followed through. Second, while pursuing Phase One enforcement, the U.S. will restart the targeted tariff exclusions process to mitigate the effects of certain Section 301 tariffs that raised costs on Americans. Third, the administration still has concerns with China that weren’t included in Phase One, such as concerns that relate to its state-centered and non-market practices that distort economic competition. The final step is consulting and coordinating with allies and partners who share American interested in ensuring the terms of global competition are fair, work collectively to set rules for trade and technology in the 21st century, and strengthen the global market for America’s workers and businesses. *********************************************************************************** Growth Energy Takes RVP to the Supreme Court Growth Energy filed a petition in the United States Supreme Court asking the Court to review a D.C. Circuit Court opinion in the case of the American Fuel & Petrochemical Manufacturers vs. the EPA. In that case, the D.C. Circuit Court vacated a 2019 EPA rule allowing year-round sales of a 15 percent ethanol fuel blend. The court’s decision overturned the EPA’s interpretation of a provision of the Clean Air Act that extended a waiver of limits on Reid Vapor Pressure (RVP), a measure of fuel volatility, to E15. Growth Energy argues that the decision did not give proper deference to EPA, contradicted Congressional intent in promoting renewable fuels, and would suppress the expansion of higher-blend renewable fuels in the future. “In 2019, EPA paved the way for the sale of E15 year-round,” says Growth Energy CEO Emily Skor. “Its decision was not only a win for the biofuels industry, our ag partners, and rural America but the environment and all drivers nationwide.” Skor also says low-carbon biofuels like ethanol burn cleaner and reduce greenhouse gas emissions by 46 percent compared to regular gasoline. “We’re asking the Supreme Court to review this decision because it is not in line with important court precedent on statutory interpretation and because of its detrimental environmental impacts,” Skor adds. *********************************************************************************** Higher Loan Limit Available for USDA Farm Loans The USDA says a higher loan limit will be available for borrowers seeking a guaranteed farm loan beginning on October 1. The limit goes from $1.776 million to $1.825 million. “Farm loans are critical for our customers’ annual operating and family living expenses, emergency needs, and cash flow,” says FSA Administrator Zach Ducheneaux (doo-SHEH-know). “Raising the guaranteed loan limit will allow FSA to better meet the financial needs of producers as natural disasters and the pandemic continue to impact their operations.” FSA farm loans offer access to funding for a wide range of producer needs, from securing land to financing equipment purchases. Guaranteed loans are financed and serviced by commercial lenders. FSA provides up to a 95 percent guarantee against the possible financial loss of principal and interest. Guaranteed loans can be used for both farm ownership and operating purposes. FSA saw a continuing strong demand for guaranteed loans during the fiscal year 2021. FSA issued more than $3.4 billion in guaranteed farm ownership and operating loans. This includes almost $1.2 billion for beginning farmers. The number of guaranteed borrowers has grown by 10 percent during the past decade, and FSA expects the increasing demand for farm loans to continue into the next fiscal year. *********************************************************************************** AEM Members Optimistic About Continued Economy Recovery Agriculture and construction manufacturers are upbeat about continuing economic recovery. A second-quarter 2021-member survey done by the Association of Equipment Manufacturers showed optimism remains as strong as it did in the first quarter survey. “Member perception showed a bit more stability in some spots and perhaps a slight decline in other areas of our industries, but overall, they showed great progress,” says Benjamin Duyck (Duck), AEM director of market intelligence. Ag equipment manufacturers aren’t concerned about the recovery being thrown off track. About 76 percent of the Q2 survey respondents reported growth compared to the previous quarter. An even-stronger 87 percent reported growth compared to the previous year. Looking ahead, 90 percent think that growth will continue during the next 12 months. While most AEM members think growth will continue, the general consensus is that the rate of growth will slow a bit. Looking at the total of all ag equipment categories, 6-10 percent growth is expected over the next 12 months, against 11-15 percent growth experienced over the past year. Among the individual ag equipment categories, trailers and transportation equipment grew more than 20 percent over the past year, while 16-20 percent had been predicted before that. *********************************************************************************** Research and Resources to Fight Tar Spot Growers across rural America are reporting unprecedented tar spot infestation this harvest season. When conditions are right, the disease can cause significant yield loss in susceptible corn hybrids. Tar Spot was first detected in the U.S. in 2015 in Illinois and Indiana, and it’s quickly spread through the Corn Belt and caused significant losses. Efforts to combat the disease has been hindered by the difficulty of growing the fungus that causes tar spot in a lab. The National Corn Growers Association has two Action Teams, both ready with support from state checkoff dollars and focused on aiding the fight against Tar Spot. 2021 growers can monitor this year’s reported incidences of tar spot spread on the corn.ipmpipe.org website. If growers see Tar Spot in their fields, they’re encouraged to use the reporting form on the website. The Corn Protection Network’s publication recommends several best management practices, including managing residue of the affected crop to reduce inoculum from overwintering; rotating to other crops to reduce the primary tar spot inoculum; avoiding highly susceptible hybrids, as well as investigating effective fungicides. *********************************************************************************** FSB Sponsors the “Beef. It’s What’s for Dinner” 300 on NASCAR Circuit For the second time, the Federation of State Beef Councils, on behalf of the Beef Checkoff, has once again partnered with the Daytona International Speedway to sponsor a NASCAR race. The federation is sponsoring the 41st season-opening NASCAR race, called the “Beef. It’s What’s for Dinner 300.” The event is on Saturday, February 19, one day ahead of the Daytona 500. “Just like great racing legacies, farmers and ranchers have a legacy, also passing it down from generation to generation, and that’s why we’re so excited to once again sponsor this premier sporting event and showcase America’s hard-working beef farmers and ranchers,” says Clay Burtrum, Federation Division Chair for the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff. “Continuing this partnership for a second year allows us to build on everything we developed in year one and expand our footprint even further.” Burtrum also says from tailgating to the big screen, beef is “the star.” From commercial production to social media promotion and traditional media outreach, “Beef. It’s What’s for Dinner,” will be back on the racetrack and in the national spotlight.
| Rural Advocate News | Tuesday October 5, 2021 |
Tuesday Watch List Markets The U.S. trade deficit for August will be released at 7:30 a.m. CDT Tuesday, also providing data for USDA to report on ag exports later Tuesday morning. Traders will consider Monday afternoon's Crop Progress report, check the latest weather forecasts and watch for any news of an export sale. Weather An upper-level low will continue to produce showers mostly east of the Mississippi River and south of the Ohio River on Tuesday, causing further delays to harvest. Drier and warmer conditions elsewhere will benefit the continued harvest. Wetter areas of the Plains and Midwest will see good growth and planting conditions for winter wheat.
| Rural Advocate News | Monday October 4, 2021 |
Continuing Resolution Provides Much Needed Disaster Assistance for Agriculture The Senate and the House passed a Continuing Resolution to fund federal agencies through December 3. The CR provides $10 billion in much-needed disaster relief for losses incurred by farmers and ranchers in 2020 and 2021. It also extends Livestock Mandatory Reporting through December 3 of this year. National Farmers Union President Rob Larew says this is good news for family farmers and ranchers. “In addition to keeping federal programs funded, the CR includes critical relief to help farmers and ranchers recover from disasters,” he says. “This year, America’s family farmers and ranchers have faced hot, dry weather in much of the country, conditions that have led to severe losses of crops and livestock and put their livelihoods in jeopardy.” Larew also says they welcome the short-term extension of the Livestock Mandatory Program, an important tool for price discovery in livestock markets. “LMR ultimately needs to be improved and permanently extended, and we look forward to working with Congress to institute reforms that can help address consolidation in livestock markets.” Georgia Representative Sanford Bishop says, “This support is crucial to our farmers, ranchers, and producers for helping them recover from disaster ensures the fruits of their labor can provide affordable, nutritious food, textiles, and other vital materials across the country.” The CR was signed by President Biden. *********************************************************************************** Biden Administration to Unveil China Trade Strategy on Monday U.S. Trade Representative Katherine Tai will reveal the Biden administration’s long-awaited strategy for moving forward with the U.S.-China trade relationship. Tai will discuss the troubled relationship during a speech at a Washington think tank. Since she first took office in March, Tai has been working through a complete review of Washington’s trade policy with China. Tariffs on hundreds of billions of dollars worth of Chinese goods were implemented by the Trump administration and kept in place by Biden. However, Reuters says the administration hasn’t talked a lot about how it will deal with what it calls “China’s non-market trade and subsidy practices.” Monday is the beginning of the final three months of the Phase One trade deal that China reached with the Trump administration early in 2019. That agreement eased a tariff war between the two biggest economies in the world. Administration officials say China hasn’t met its Phase One commitments, and they intend to hold the Asian nation to its international trade commitments. Trade industry experts estimate that China’s purchases of U.S. exports through August are running at about 62 percent of the Phase 1 targets. Tai has asked Congress for new trade laws to counteract Chinese subsidies for high-technology sectors. *********************************************************************************** Senate Confirms New Director of the Bureau of Land Management The Senate voted 50-45 to approve the nomination of Tracy Stone-Manning as Director of the Bureau of Land Management. The Montana resident takes over a department that manages about 12 percent of the total landmass in the U.S. The Montana Free Press says her nomination was supported by Montana Democrat Jon Tester. However, ten Republicans on the Senate Committee on Energy and Natural Resources signed a letter to President Biden, asking him to withdraw her nomination. The letter centered on Stone-Manning’s role in an investigation into a tree-spiking incident in the Clearwater National Forest in 1989 that eventually resulted in the indictment of four men. Wyoming Republican Senator John Barrasso says Biden’s nominee lied to the energy committee about her involvement in the tree-spiking incident, calling her a “dangerous choice” to put in charge of America’s public lands. Barrasso also pointed out that her nomination was opposed by a long list of policy leaders and organizations, including two former BLM directors, logging groups, and sportsmen’s groups. The final vote on her nomination fell along party lines, with Democrats voting in favor and Republicans opposed. *********************************************************************************** District Court Allows R-CALF Lawsuit to Proceed The U.S. District Court in Washington, D.C., ruled a lawsuit brought by independent ranchers who say the Beef Checkoff Program threatens their livelihood can go forward. The court’s opinion denied a motion to dismiss by the USDA, writing that the ranchers have successfully alleged they have “associational standing” to challenge USDA’s practices. The case will proceed through discovery. R-CALF USA filed this legal challenge over amendments the USDA made to the operation of the federal Beef Checkoff program in September 2020. Tri-State Livestock News says the new lawsuit builds on R-CALF USA’s Montana litigation, which challenged the constitutionality of the use of Checkoff funds by private state beef councils to fund speech that harms independent producers. R-CALF’s lawsuit asserts that the government unlawfully amended the legal and regulatory framework within which the state beef councils operate without first undergoing a public rulemaking process that gives the public notice of its proposed amendments and provides the public with an opportunity to comment before the changes get implemented. R-CALF says its members, and ranchers everywhere were denied their right to weigh in on a federal program they’re forced to fund. *********************************************************************************** Cattlemen’s Foundation Accepting Applications for Beef Industry Scholarships The National Cattlemen’s Foundation is accepting applications for the 2022-2023 CME Group Beef Industry Scholarship. Ten scholarships of $1,500 each will be given to outstanding students pursuing careers in the beef industry. Introduced in 1989, the scholarship identifies and encourages talented students who will play an important role in the future of food production. Students studying education, communication, production, research, or other areas related to the beef industry are eligible to apply for the annual scholarship program. Eligible applicants must be graduating high school seniors or full-time undergraduate students enrolled at a two-or-four-year institution. The application includes a one-page letter outlining the student’s career goals related to the beef industry and a 750-word essay describing an issue in the beef industry and offering solutions to the program. The applicant or a family member must be a member of the National Cattlemen’s Beef Association. The deadline is November 12, at midnight, Central Time. The winners get announced at the 2022 Cattle Industry Convention and NCBA Trade Show in February 2022. “We’re proud to partner with the National Cattlemen’s Foundation and the NCBA to help advance educational opportunities for these hardworking students,” says Tim Andriesen, Managing Director of Agricultural Products with the CME Group. *********************************************************************************** U.S. Potato Sales Strong in Marketing Year 2020-2021 Potato sales at the foodservice level fluctuated while retail purchases remained strong between June 2020 to July 2021. USA Potatoes recently conducted an annual sales and utilization study that showed an overall decline in potato use for the July 2020 – June 2021 marketing year. The decrease was because of an eight percent decline in sales to foodservice and the leveling off of retail sales from the peak panic buying that took place at the end of the previous marketing year. This year’s tight supply of U.S. potatoes, particularly frozen potato products, was made up for by a 12 percent increase in total imports. Despite the uncertainties in the international markets and the extreme problems with international shipping, U.S. potato exports increased by four percent for the marketing year. Retail sales, which includes domestically produced potatoes as well as imports, are up compared to three and five years ago. However, the decline at the foodservice level was too great to overcome. For the past 20 years, the trend has been for more and more sales to go through foodservice establishments compared to retail outlets. The trend was reversed over the past two years, but industry experts say that foodservice will begin to make up a greater share but not right away. USA Potatoes says that demand for potatoes remains strong, potatoes are the number one vegetable at retail, and the top side dish in restaurants.
| Rural Advocate News | Monday October 4, 2021 |
Monday Watch List Markets The first full week of October starts with traders checking the latest weather forecasts and pausing at 8 a.m. CDT to see if USDA has an export sale announcement. USDA's weekly grain inspections report at 10 a.m. is expected to show more progress moving grain into the Gulf. USDA's Crop Progress report at 3 p.m. will show row crop harvest progress and winter wheat planting progress. Weather Scattered showers will follow an upper-level system east of the Mississippi River on Monday. Drier and warmer conditions to the west will favor the ongoing harvest and winter wheat establishment after last week's rains in the Plains. The Pacific Northwest will continue to struggle with the dryness for winter wheat, however.
| Rural Advocate News | Friday October 1, 2021 |
AFBF: No Methane Tax on Animals in Reconciliation bill The American Farm Bureau Federation, addressing a social media myth, says “the current language of the reconciliation bill does not impose a methane tax on agriculture.” Those words from AFBF’s Public Affairs Vice President Sam Kieffer, who says the statement seeks to clear up any confusion. Kieffer says that over the summer, Farm Bureau economists conducted an analysis, at the request of Congressional committee staff, to determine the potential impact if agriculture were to be included in legislation imposing such a tax. Farm Bureau did so on the formula set forth in legislative proposals that impose a methane tax on the oil and gas sectors. Kiefer says, “We believe this analysis was informative and helpful in demonstrating that such a tax would have been devastating to agriculture.” Kieffer says Farm Bureau opposes any tax on methane, but “is grateful to lawmakers for recognizing the thin margins in agriculture and that such a tax would undoubtedly put family farms out of business.” Information posted to social media claim the bill included a per-head tax on livestock. *********************************************************************************** US Corn Ending Stocks Down 36% From September 2020 Old crop corn stocks as of September 1, 2021, totaled 1.24 billion bushels, down 36 percent from the same time last year, according to the Department of Agriculture’s Grain Stocks Report. USDA reports 395 million bushels were stored on farms, down 47 percent from last year. Off-farm stocks, at 842 million bushels, were down 28 percent from a year ago. Old crop soybeans storage totaled 256 million bushels, down 51 percent from a year ago. Off-farm stocks, at 188 million bushels, were down 51 percent from last September. Wheat storage totaled 1.78 billion bushels, down 18 percent from a year ago. USDA’s National Agricultural Statistics Service also released the Small Grain Annual Summary. All wheat production totaled 1.65 billion bushels in 2021, down ten percent from the revised 2020 total. Area harvested for grain totaled 37.2 million acres, up one percent from 2020. The U.S. yield was estimated at 44.3 bushels per acre, down 5.4 bushels from 2020. *********************************************************************************** USDA Announces ASF Vaccine Candidate USDA's Agricultural Research Service announced Thursday that one of its vaccine candidates can prevent and protect against African swine fever. Specifically, the vaccine shows effectiveness against the current Asian and European strains of the virus. The findings also show that a commercial partner can replicate experimental-level results and prevent the spread of the virus. The onset of immunity was revealed in approximately one-third of the swine by the second week post-vaccination, with full protection in all swine achieved by the fourth week. The announcement follows a previous announcement this week that USDA is providing $500 million in funding for preparation and prevention regarding African swine fever. To date, ARS has successfully engineered and patented five ASF experimental vaccines and has fully executed seven licenses with pharmaceutical companies to develop the vaccines. A commercial vaccine for ASF virus will be an important part of controlling ASF in outbreak areas. All U.S. vaccine candidates have to go through the APHIS regulatory approval process for use in U.S. swine. *********************************************************************************** Restaurants to Congress: Recovery is Moving in Reverse The National Restaurant Association this week sent results from a new survey to Congress, warning provisions of the Build Back Better Act could harm the rebuilding restaurant industry. Sean Kennedy of the National Restaurant Association says, while they support parts of the Build Back Better Act, “the legislation is too large and too expensive” for small businesses to take on. The national survey of restaurant operators indicated that deteriorating business conditions are impacting operators’ outlook, who believe the recovery from the pandemic will be prolonged well into 2022. Further, costs are up as 81 percent of operators report paying more for food, and others report higher labor and occupancy costs, while 85 percent report smaller profit margins than before the pandemic. The association opposed several tax changes included in the Build Back Better Act, that significantly increase tax obligations on small business operators. The association also urged Congress to replenish the Restaurant Revitalization Fund. *********************************************************************************** ERS Study Shows Meatpackers Role in COVID Spread A study from USDA's Economic Research Service shows the role meatpacking plants played in the spread of COVID-19. In what ERS describes as a working paper, the study outlined 49 U.S. nonmetro counties in which 20 percent or more of employment is in meatpacking, defined as meatpacking-dependent counties. This represents 41 percent of all nonmetro counties with employment in a single manufacturing industry. Meatpacking-dependent counties observed nearly ten times more COVID-19 cases in early May of 2020, compared to other manufacturing-dependent counties. By the beginning of July, the difference completely disappeared, driven by a reduction of cases in meatpacking-dependent counties. The study found evidence of large differences between meatpacking communities and a comparison group during the initial industry outbreak, which disappeared after implementing workplace safety precautions. While the study cannot verify that the implemented safety precautions were singlehandedly responsible for the change, it provides evidence that improved working conditions reduced COVID-19 spread. *********************************************************************************** Price Spread for Pork Products Increases as Processing Plant Labor Shortages Continue The COVID-19 pandemic continues to worsen longstanding labor shortages in the U.S. pork processing industry. Because the production of deboned products requires more labor, associated prices are higher than bone-in product prices, which have smaller labor requirements, according to USDA’s Economic Research Service. When labor shortages are severe, as in the spring of 2020, when COVID-19-related infections of processing plant employees caused some plants to slow or temporarily shut down production, plant managers often shift labor away from deboning activities. The price of deboned pork products then increases in accordance with reduced supplies, while bone-in product prices decline as supply expands. Although the price spread declined through early May 2021 as hog numbers declined in a typical seasonal pattern, it did not return to pre-COVID levels. In mid-to-late August, the price spread became increasingly variable and featured several spikes, suggesting that COVID-related impacts on the labor availability of employees is ongoing, and that price spread turbulence is continuing. *********************************************************************************** NIFA Invests $10 Million for Food Safety Outreach, Training and Education The Department of Agriculture’s National Institute of Food and Agriculture this week announced a $10 million food safety investment. The investment funds 21 grants to develop and implement food safety and Food Safety Modernization Act-related training, education, extension outreach and technical assistance for food processors and farmers with small to mid-size operations. NIFA Director Dr. Carrie Castille explains the program “helps deliver critical trainings and resources that equip our small business owners with tools to provide safe, high-quality food.” Additional communities supported through the Food Safety Outreach Competitive Grant Program include beginning farmers, socially disadvantaged farmers, veteran farmers and ranchers, and small fresh fruit and vegetable merchant wholesalers. Awards are made under three categories, including Multistate Education and Training Projects, Community Outreach Projects and Collaborative Engagement Supplements. The Food Safety Modernization Act, passed into law in 2011 with food codes that protect communities from foodborne illness, largely focuses on training for large farmers and ranchers with commercial operations.
| Rural Advocate News | Friday October 1, 2021 |
Friday Watch List Markets Friday morning reports start at 7:30 a.m. CDT with U.S. personal incomes for August, followed by ISM's index of U.S. manufacturing and the University of Michigan's consumer sentiment index, both at 9 a.m. USDA's Fats and Oils report is due out at 2 p.m. CDT, providing a soybean crush estimate for August. Traders will continue to consider Thursday's new estimates from Dow Jones, check the weather and watch for any news of an export sale. Weather Scattered showers will continue across the middle of the country on Friday, providing more beneficial soil moisture for winter wheat planting and establishment, and causing some harvest delays for corn, soybeans, and cotton.
| Rural Advocate News | Thursday September 30, 2021 |
USDA Announces Investment Package on Climate, Agriculture Agriculture Secretary Tom Vilsack Wednesday announced a $3 billion comprehensive set of investments to address challenges facing farmers and ranchers. USDA says the investments will support drought resilience and response, animal disease prevention, market disruption relief, and purchase food for school nutrition programs. The support will be made available via the Commodity Credit Corporation. Specifically, the package includes $500 million each for drought, African swine fever, and market disruptions, and up to $1.5 billion to provide assistance to help schools respond to supply chain disruptions. Secretary Vilsack also outlined and requested public comments on a new climate partnership initiative designed to create new revenue streams for producers via market opportunities for commodities produced using climate-smart practices. Vilsack adds, “Today, we ask for public input to inform our decision making and enhance the design of this initiative.” USDA is seeking input specifically on the current state of climate-smart commodity markets, systems for quantification, and potential protocols, among other topics. *********************************************************************************** NPPC Welcomes USDA Investment on ASF Prevention The Department of Agriculture’s Wednesday investment includes $500 million in USDA Commodity Credit Corporation funds for prevention of and preparation for African swine fever. The National Pork Producers Council applauded the funding as President Jen Sorenson says ASF is a serious disease, with serious consequences, adding, “We’re pleased USDA recognizes the severity of this threat.” ASF is not a threat to people but is highly contagious among hogs and has a nearly 100 percent mortality rate. ASF was recently detected in the Dominican Republic and Haiti, the first time in 40 years the disease has been in the Western Hemisphere. APHIS immediately took steps to stop the spread of the disease to the U.S. mainland and to the U.S. territories of Puerto Rico and the U.S. Virgin Islands. Since ASF began spreading through Asia in 2018, NPPC has urged Congress and USDA to prepare for the disease, asking for funding and measures to protect the U.S. hog herd. *********************************************************************************** Joint Initiative Seeks to Promote Competition in the Beef Supply Chain The American Antitrust Institute and Organization for Competitive Markets this week announced a new joint initiative, “Breaking the Market Power Bottleneck in U.S. Beef: A Roadmap for Building an Independent Ranching and Processing Sector.” The initiative seeks to promote competition in the U.S. beef supply chain and supports the competition policy initiatives recently introduced by the Department of Agriculture. The organizations also urge the Department of Justice and USDA to consider a full complement of policy tools needed to support competition in beef, for the benefit of consumers and producers. Between 1980 and 2020, the retail sector’s share of the beef dollar has grown by about 65 percent, while the packer’s share increased by more than 70 percent, according to OCM and AAI. Over the same period, ranchers’ share of the beef dollar dropped by about 40 percent. OCM Executive Director Mike Eby adds, “The strategic expansion of beef processing is a must.” *********************************************************************************** NFU Pleased Lawsuit Against the “Big 4” Packers Moving Forward A federal judge in Minnesota this month ordered a class-action lawsuit against JBS, Tyson, National Beef, and Cargill to proceed. In the case, National Farmers Union is among the plaintiffs alleging that America’s four largest beef packers conspired to suppress the price of cattle and increase the price of beef. NFU President Rob Larew states, “We are pleased the effort to restore pricing transparency and competitiveness to the cattle markets is moving forward in the courtroom.” The case now enters the discovery phase of the trial, where evidence and information will be presented to demonstrate how packers violated the Sherman Antitrust Act, the Packers and Stockyards Act, and the Commodity Exchange Act. The case alleges malfeasance, which is intentional conduct that is wrongful or unlawful, and calls for pricing transparency and competitiveness in cattle markets. Larew claims the conduct of meatpackers “has been very damaging to independent farmers and ranchers.” *********************************************************************************** American Bumblebees Could be Listed as Endangered The U.S. Fish and Wildlife Service this week announced the American bumblebee, whose populations have plummeted by nearly 90 percent, may warrant Endangered Species Act protection. The announcement kicks off a one-year status assessment of the species. A Federal Register document published Wednesday follows a petition filed by the Center for Biological Diversity and others. The Center says the species' decline has resulted from multiple concurrent threats, including habitat loss, pesticides, disease, climate change, and competition from non-native honeybees. The organization says Pesticide use, especially the widespread use of neonicotinoid insecticides, reduces survival and harms reproduction as well as bumblebee immune systems. American bumblebees were first described before the United States won its independence and are known by their distinctive black-and-yellow color pattern. The Fish and Wildlife Service will now initiate a scientific status review and public comment period before making a final decision on whether to protect the bumblebee. *********************************************************************************** AEM Offers Tips to Stay Safe on the Road During Harvest Season The Association of Equipment Manufacturers has three tips to keep you safe on the road during harvest season. AEM’s Curt Blades says that all rural drivers should be aware, be predictable and be patient, this harvest season. And Blades adds that applies to everyone, saying, "we all need to recognize that everyone has to go down these same roads as safely as possible." A recent study from the University of Iowa Great Plains Center for Agricultural Health found that higher speed roads, and roads with limited visibility, such as narrow, hilly, or curvy roads, have a higher instance of traffic accidents between motor vehicles and farm equipment. Their study also found that 30 percent of these accidents occurred in urban zip-codes. Maximizing the safety of farmers in their equipment has also been a priority of the Association of Equipment Manufacturers, and that extends to keeping drivers on the road safe as well.
| Rural Advocate News | Thursday September 30, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, a third estimate of U.S. GDP in the second quarter and the latest update of the U.S. Drought Monitor. Traders will be watching the Energy Department's report on natural gas storage at 9:30 a.m. At 11 a.m. CDT, USDA will release its quarterly Grain Stocks report and Small Grains Annual Summary. Weather A system slowly working through the Plains and into the western Midwest will bring some scattered showers on Thursday. This will cause some delays to the continued harvest and winter wheat planting. However, it will be highly beneficial for dry soils in the Central and Southern Plains and eliminate some areas of drought. Showers will be scattered though and some areas will be missed. Eastern crop areas should continue to see overall favorable weather conditions for harvest.
| Rural Advocate News | Wednesday September 29, 2021 |
Lawmakers Urging Administration to Increase Biofuels Usage A group of Midwest lawmakers Tuesday urged the Biden administration to increase biofuels usage and reject any reduction in blending requirements. After recent reports that the administration may be considering lowering the Renewable Volume Obligations, the group raised serious concerns about the harm a reduction in biofuels usage could cause to the administration's clean energy goals and economic stability of the renewable fuels marketplace. The letter states, "We have strong reservations about the potential for the Administration to destroy over five billion gallons of biofuel volume from the 2020, 2021, and 2022 RVOs.” The effort is led by Democrats, including Representatives Cindy Axne of Iowa and Angie Craig of Minnesota, along with Senator Cheri Bustos of Illinois and Amy Klobuchar of Minnesota. The letter followed similar comments from Growth Energy and the National Corn Growers Association. Growth Energy CEO Emily Skor states, “it is imperative to consider the vital role that environmentally sustainable fuel options such as ethanol will play in reducing greenhouse gas emissions.” *********************************************************************************** AFBF, NPPC File Prop. 12 Appeal to Supreme Court The National Pork Producers Council and the American Farm Bureau Federation this week petitioned the U.S. Supreme Court to take their case against California's Proposition 12. The California law would ban the sale of pork from hogs that don't meet the state's "arbitrary" production standards. The appeal to the high court comes after the U.S. Court of Appeals for the 9th Circuit in July upheld a lower court ruling against the NPPC-AFBF case. The appeals court found despite the organizations plausibly alleging that Prop. 12 "will have dramatic upstream effects and require pervasive changes to the pork industry nationwide," 9th Circuit precedent won't allow the case to continue. That precedent, however, runs counter to numerous Supreme Court decisions and conflicts with nearly every other federal circuit court. NPPC President Jen Sorenson states, “We're asking the Supreme Court to consider the constitutionality of one state imposing regulations that reach far outside its borders.” *********************************************************************************** Beyond Meat to Offer Chicken Imitator in Grocery Stores Beyond Meat this week announced it is debuting its Beyond Chicken Tenders at select retailers nationwide. In addition to the retail rollout of the plant-based chicken tenders, Beyond Meat is also increasing its retail product distribution of other Beyond Meat products at Walmart stores in which Beyond Meat products are currently sold, making this the third such expansion this year alone. The company promotes the Beyond Chicken Tenders as a product that contains no GMOs, antibiotics, hormones or cholesterol. The protein in Beyond Chicken Tenders is derived from the faba bean, a nutrient-packed legume crop. Its unique qualities, the company says, make it the optimal ingredient for replicating the taste and texture of traditional chicken tenders. The retail rollout of Beyond Chicken Tenders follows the foodservice launch earlier this summer. Beyond Chicken Tenders come pre-cooked, ready-to-heat in the air fryer, oven or microwave. Starting in October, shoppers can find Beyond Chicken Tenders in select grocery stores. *********************************************************************************** Gallagher Ends Tenure as DMI CEO Dairy checkoff program Dairy Management Inc. announced Tuesday that Tom Gallagher has decided to conclude his 30-year tenure as CEO to devote more time to teaching and other opportunities. Barbara O’Brien, President of DMI and CEO of the Innovation Center for U.S. Dairy, has been named by the board of directors as the next CEO. The board leadership, Gallagher and O'Brien will work on a transition plan, and Gallagher has committed his support through the transition timeframe. O'Brien's knowledge and experience with the dairy industry provide a seamless transition and a steady continuation of the checkoff's value to dairy farmers. In her current role, O'Brien has instilled a sales growth and outcomes-based mentality within her leadership team and staff, overseeing operating structures for business development, domestic and international sales, science and insights, marketing communications and finance. O'Brien adds, "I will set a vision that harnesses the strong legacy Tom built and leads to new long-term growth." *********************************************************************************** Tillable, Compeer Financial Launch Online Loan Applications Tillable and Compeer Financial have partnered to launch an online loan application, enabling anyone to purchase or refinance farmland directly from a smartphone. Farmers, landowners and investors can now visit Tillable to shop for a farmland mortgage, refinance their current loans, or finance their cash rent. The all-digital lending application takes less than ten minutes to complete, and for the first time ever, qualified borrowers will learn if they are approved for the loan of their choice within seconds. The new service is currently available in selected counties in Illinois, Wisconsin and Minnesota. Compeer Financial will underwrite and service all loans originated through the partnership. In the near-term, the companies hope to digitize the entire closing process for farm loans. The new financial offering coincides with Tillable's entrance into the real estate brokerage market. Tillable customers can now buy or sell farmland through the website. For additional information on both services, visit Tillable.com. *********************************************************************************** 2021 MILK Business Conference to Gather Dairy Industry Leaders in Las Vegas The MILK Business Conference is set for November 30 – December 2, 2021, at the Paris Hotel in Las Vegas. The event will offer educational and networking opportunities for dairy industry leaders, live and in person, and will take place before the start of the National Finals Rodeo. Farm Journal calls the event the only one that focuses exclusively on every business aspect of dairy operations. The MILK Business Conference agenda highlights include Five Mega Trends in 2022 and Beyond, How to Become the Employer of Choice, Turning Manure into Money, a firsthand and expert session on mental health, a traceability session on beef on dairy and more. Farm Journal’s Cliff Becker says, “We’ll have speakers and sessions that will help dairy producers put their strengths to work.” Becker teases the event, adding, “A dairy’s greatest asset in 2035 might not be their cows. Register and attend to find out what it will be.” Find additional information and registration at MilkBusinessConference.com.
| Rural Advocate News | Wednesday September 29, 2021 |
Wednesday Watch List Markets A report on U.S. pending home sales in August is due out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly energy inventories at 9:30 a.m., including ethanol production. Traders continue to monitor the latest weather forecasts and watch for any news of export sales. Investors will be keen to any news about a possible government shutdown. Weather A system emerging from the Rockies will produce scattered showers up and down the Plains on Wednesday while most other areas remain dry. Outside of the showers, temperatures will remain well above normal and areas that do not see any activity will have good harvest conditions for yet another day.
| Rural Advocate News | Tuesday September 28, 2021 |
House Infrastructure Vote Likely This Week It's a busy week in Washington, D.C., with a tight deadline for continuing resolutions and the U.S. debt ceiling, along with a planned infrastructure vote in the House of Representatives. House Speaker Nancy Pelosi had promised an infrastructure vote by Monday, but told House members late last week the debate would begin early in the week, with a likely vote on Thursday. The infrastructure package passed the Senate in August, which will help fund road, bridge, water infrastructure and other projects. Pelosi told Reuters over the weekend, “We are now working together with the Senate and the White House on changes to this historic legislation.” Pelosi said she would not bring the infrastructure bill to a vote until she was sure it would pass, but expressed confidence about its prospects. Some House Democrats have threatened to vote against the bill, instead favoring the larger $3.5 trillion version of the bill. *********************************************************************************** USDA Investing $75 million in Projects with Focus on Climate-Smart Ag The Department of Agriculture will invest nearly $75 million for 15 partner-led projects to address natural resource concerns on private lands. This year, projects funded by the Regional Conservation Partnership Program's Alternative Funding Arrangements focus on climate-smart agriculture and forestry and other conservation priorities and improve access for historically underserved producers. As part of this year's project selections, NRCS prioritized projects that supported smart strategies on working lands to help sequester carbon, reduce greenhouse gas emissions and mitigate the impacts of climate change. Several projects also had concrete plans for engaging producers from historically underserved communities. Announced Friday, the funded projects include the Climate Action and Reforestation in Northern Michigan, Enhancing Hawaii's Forests for Climate Resilience and South Dakota’s Expanding Soil Health Through Carbon Markets, among others. First authorized in the 2014 Farm Bill, the Regional Conservation Partnership Program has leveraged partner contributions of more than $1 for every $1 invested by USDA. *********************************************************************************** U.S. Hog, Cattle on Feed Inventories Decline USDA last Friday released the monthly Cattle on Feed report and the Quarterly Hogs and Pigs report. United States inventory of all hogs and pigs on September 1, 2021, was 75.4 million head, down four percent from 2020, but up one percent from June 2021. Breeding inventory, at 6.19 million head, was down two percent from last year, and down slightly from the previous quarter. Market hog inventory, at 69.2 million head, was down four percent from last year, but up one percent from last quarter. Meanwhile, the monthly Cattle on Feed report shows cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.2 million head on September 1, 2021. The inventory was one percent below September 1, 2020. This is the second-highest September 1 inventory since the series began in 1996. Placements in feedlots during August totaled 2.10 million head, two percent above 2020. *********************************************************************************** Grassley Running for Another Senate Term Long-time Iowa Senator Chuck Grassy, at 88 years old, will seek reelection in 2022. Grassley is the oldest Republican in the Senate, and if elected, his next term will end when he is 95. In announcing his decision, Grassley says, “Iowans have encouraged me to continue my work representing them.” Democrat Abby Finkenauer, a former U.S. Representative from Iowa, is in the race against Grassley. Finkenauer stated via Twitter that Grassley "spent 47 years with the DC elite, lining his own pockets," and is "just another DC politician who can’t let go of power and turned his back on families like mine.” Grassley’s campaign contends he has consistently been recognized as one of the most bipartisan and effective senators, according to independent analysis conducted by GovTrack and the Lugar Center at Georgetown University. Grassley currently serves as the Senate Finance Committee Chair, and holds a seat on the Senate Agriculture Committee. *********************************************************************************** Restaurants Feeling Equipment Supply Chain Issues U.S. restaurants feeling supply chain issues for their food products are also contending with issues around upgrading kitchen equipment. Restaurant Business reports it can sometimes take months to get equipment in the door, thanks to a backlog of imports that has left two dozen or more container ships waiting outside of U.S. ports. Mark Rossi, CEO of Avanti Restaurant Solutions, told Restaurant Business that the supply chain challenges could be expected to persist until at least January 2023, or longer. The supply chain issues caused by the COVID-19 pandemic stems from labor issues, including a lack of truck drivers and manufacturer's struggling to bring workers back. The lack of truck drivers creates backlogs of shipments at U.S. ports, as container ships are forced to wait longer to unload. The challenge for restaurant operators comes as they’re dealing with their own issues, including a labor shortage and trouble getting food supplies in the door. *********************************************************************************** Weekly Fuel Prices Mixed The nation's average gas price declined 0.7 cents per gallon from a week ago to $3.17 per gallon, according to GasBuddy. The national average is up 3.8 cents from a month ago and $1.00 per gallon higher than a year ago. The national average price of diesel has risen 1.4 cents in the last week and stands at $3.31 per gallon. Relief in average prices has mostly shown up west of the Rockies thus far and may continue to be delayed by an active hurricane season. GasBuddy’s Patrick De Haan states, “While I am optimistic that we eventually will see a decline in price, the drop is not likely to be as noticeable as I had anticipated due to the above average hurricane season and as demand remains seasonally strong.” Crude oil prices are increasing on renewed concerns that oil supply is not keeping up with demand as the global economy continues to improve as the pandemic eases.
| Rural Advocate News | Tuesday September 28, 2021 |
Tuesday Watch List Markets There is a report on U.S. consumer confidence for September due out at 9 a.m. CDT. U.S. Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell will testify before the U.S. Senate Banking Committee Tuesday. Traders will continue to keep up with the latest weather forecasts and watch for any news of an export sale. Weather Another day of well above normal temperatures and mostly dry conditions across the major growing areas of the country will provide good weather for harvest. Some isolated showers in Texas and the Pacific Northwest will be the only significant radar signatures today with showers starting to move into the Plains tonight.
| Rural Advocate News | Monday September 27, 2021 |
Reconciliation Bill Tackles Conservation and Farm Assistance The Hagstrom Report says the Democrats’ budget reconciliation bill will contain language to address the court cases brought against a program to provide debt relief directed to minority farmers. Senate Ag Chair Debbie Stabenow made that known after a committee business meeting last week. White farmers and many conservation groups have filed 13 lawsuits against the program, but the Biden administration hasn’t yet responded. Stabenow says, “We’re leading the way in helping farmers tackle the climate crisis with a historic investment of $28 billion, which is the largest investment in conservation since the Dust Bowl.” She also points out that American conservation programs are proven and popular with farmers, ranchers, and foresters. This will make a huge impact on reducing greenhouse gas emissions and is equal to taking about 142 million cars off the road. The legislation would provide $5 billion for direct payments to producers who establish cover crops totaling $25 per acre for up to 1,000 acres through the fiscal year 2026. *********************************************************************************** Hurricane Ida Does More than $500 Million to Louisiana Agriculture Hurricane Ida did more than a half-billion dollars’ worth of damage to Louisiana agriculture. The LSU AgCenter says the Category 4 hurricane’s total damage to Louisiana’s agriculture industry is at least $584 million. Economist Kurt Guidry tells The Hill that about half the damage is to the timber industry, the top-grossing ag commodity in the Bayou State. Over 168,000 acres of timberland were affected by the hurricane’s winds, which caused an estimated $300 million in damage. The AgCenter report says along with the timber, 35 percent of the damage is estimated to be in infrastructure losses such as equipment. Other commodities like sugarcane, horticulture, and livestock were also affected by Ida. Sugarcane took a 35 million dollar hit, while horticulture also saw approximately $9.5 million in damages. Livestock losses are currently low, with only 22 recorded livestock deaths so far. The overall dollar amount in damage also includes estimates for future costs affecting production and reduced crop yields brought on by the storm. *********************************************************************************** USDA Will Establish an Equity Commission The USDA says it will establish an Equity Commission and is looking for nominations for membership on the Commission’s Advisory Committee and Subcommittee on Agriculture. “USDA is committed to advancing equity throughout the Department,” says Ag Secretary Tom Vilsack. The Equity Commission will advise the Ag Secretary by identifying USDA programs, policies, systems, structures, and practices that contribute to barriers to inclusion or access, systemic discrimination, or exacerbate racial, economic, health, and social disparities. The Ag Subcommittee will report back to the Equity Commission and provide recommendations on issues of concern that relate to agriculture. Additional subcommittees will focus on other policy areas, such as rural communities and economic development. The Equity Commission will deliver an interim report and provide actionable recommendations within a year of its formation. House Ag Chair David Scott says, “Today’s announcement will remedy inequalities in any program, policy, system, structure, or practices at USDA, and that’s a step in the right direction.” The Georgia Democrat says he’s thankful for the Ag Secretary’s efforts to address any wrongdoing at USDA. *********************************************************************************** NAFB Taking Applications for 2021 Social Media Corps The National Association of Farm Broadcasting is accepting applications from agricultural communications students for the 2021 NAFB Convention Social Media Corps. Students will cover the sessions, events, news, and awards at the 78th Annual NAFB Convention. The social media corps will fully participate in the convention scheduled for November 17-19 in Kansas City, Missouri. The group will take to NAFB’s digital platforms to share stories from the convention and the Trade Talk floor. Communicators will collect content, including photos, videos, and blog posts, and the Corps will guide the online conversation throughout the event. NAFB is looking for students planning to attend the convention, are passionate about social media and digital storytelling, and looking to learn, share, and grow in the social media space. Selected participants are responsible for their travel to and from the convention. NAFB will provide housing and convention registration. Participants are chosen through a competitive application process, with applications due by 5 p.m. central time on Friday, October 29. The three interns will be announced on November 3. *********************************************************************************** First-Ever Shipment of U.S. DDGS Arrives in Tunisia A combination of competitive freight prices and market-specific educational efforts from the U.S. Grains Council has led to the first-ever shipment of dried distiller’s grains with solubles arriving in Tunisia (too-KNEE-zhah). The shipment was delivered earlier this month and marked the opening of new opportunities for American growers and shippers to get products into the Mediterranean region. The USGC’s Middle East and Africa Office says the council’s strategy is focusing on marketing the U.S. advantage in Tunisia for corn and corn co-product imports. The feed industry in Tunisia is a mature market compared to other neighboring countries, and the Council’s efforts have focused on trade servicing and promoting these products. Bulk carrier rates on several key routes in the region are higher than previous record levels, which means some importers are looking at other options. This has boosted container rates in the U.S., with feed grain importers near the Mediterranean Sea and Arab Gulf opting to use containers rather than bulk shipments to reduce feed costs. The USGC’s regional office is actively supporting the country’s protein demand growth through promoting U.S. corn and its co-products, organizing events, and hosting industry stakeholders in the United States. *********************************************************************************** CoBank: Ag Retailing Future Driven by Precision A new report from CoBank’s Knowledge Exchange says the ag retailer of the future has an opportunity to earn more income from precision agronomy services and emerging sustainability management programs. Traditional crop input sales will continue to be a boon for retailers in the future. The report says the current strong financial returns that cooperatives and independent ag retailers are enjoying provide a timely opportunity to invest in new technologies. The goal would be to position themselves for success in a rapidly evolving marketplace. “The traditional approach for farm supply cooperatives is to save above-average profits when times are good and then manage costs during a downturn,” says Kenneth Zuckerberg, lead grain and farm supply economist for CoBank. “Unfortunately, this approach exposes cooperatives to revenue volatility and declining earnings during down cycles, which can often last five or more years.” Instead of relying on product commissions and rebates alone, Zuckerberg says farm supply cooperatives’ path forward is to expand their precision agronomy service offerings and capture more income from consultative service and software fees. “Putting technology and information to work to help farmers manage their inputs and production is where farm supply co-ops excel,” he says.
| Rural Advocate News | Monday September 27, 2021 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and watch for any new developments out of China. A report on U.S. durable goods orders for August is due out at 7:30 a.m. CDT, followed by a possible export sale announcement at 8 a.m. USDA's weekly report of grain export inspections will give a clue as to how river traffic is moving through Louisiana. USDA's Crop Progress report at 3 p.m. will report on row crop harvest progress and winter wheat planting. Weather A ridge of high pressure will keep most of the country hot and dry. This should promote harvest activities especially considering the rain in the forecast later this week. The Pacific Northwest should see some beneficial showers, but more are needed for winter wheat. Winter wheat in the Southern Plains will have difficulty under heat and moisture stress through Tuesday before beneficial showers return.
| Rural Advocate News | Friday September 24, 2021 |
USDA Takes Steps to Build More Sustainable, Resilient and Inclusive Food Systems The Department of Agriculture highlighted investments to end hunger and malnutrition at the United Nations Food Systems Summit this week. Speaking of the total $10 billion of investments, Agriculture Secretary Tom Vilsack states, “We must use the power of ingenuity to improve on food systems so they provide safe, nutritious, affordable and accessible food for all." USDA also announced the formation of the Coalition of Action on Sustainable Productivity Growth for Food Security and Resource Conservation. This global, multi-sector coalition will accelerate the transition to more sustainable food systems through agricultural productivity growth. To help ensure that every child has access to nutritious school meals by 2030, USDA is leading U.S. participation in the coalition on School Meals, which supports comprehensive and effective school feeding programs worldwide. The United States, led by USDA, is also supporting the global Food is Never Waste Coalition, and reaffirming its commitment to reducing food loss and waste domestically. *********************************************************************************** Industry Responds to Coalition Announced at UN Summit Agriculture and food industry groups welcome the formation of the Coalition of Action on Sustainable Productivity Growth for Food Security and Resource Conservation. The North American Meat Institute announced that it will join the effort. The Meat Institute expects to announce in November ambitious, data-driven targets to publicly verify progress on the 100 metrics in its sustainability framework. NAMI President and CEO Julie Anna Potts commented, "our commitments to economic, social, and environmental sustainability place us at the center of solutions for a healthy future." The National Milk Producers Federation, in a statement, commented, "We're ready to do the work needed to advance the pragmatic, forward-looking approach the U.S. has charted throughout the summit's process." American Feed Industry Association President and CEO Constance Cullman commended U.S. leaders at the summit, saying, “They signaled to the world that the U.S. does not intend to turn the clock back on scientific progress, but instead, advocate for modern technologies and practices.” *********************************************************************************** Senate Ag Advances USDA Natural Resources and Environment Nominee The Senate Agriculture Committee Thursday advanced the nomination of Dr. Homer L. Wilkes to be USDA’s undersecretary for Natural Resources and Environment. Wilkes currently serves as Director of the Gulf of Mexico Ecosystem Restoration Team. He served as acting associate chief of the Natural Resources Conservation Service between 2010 and 2012 and has over 40 years of public service experience. Committee Chair Debbie Stabenow, a Democrat from Michigan, states, "Wilkes is a dedicated public servant and strong bipartisan choice to lead USDA's efforts to restore and protect the health of our public forests and grasslands." Stabenow also noted The Natural Resources and Environment mission area is at the forefront of tackling the climate crisis. Ranking Member John Boozman, an Arkansas Republican, adds, “Wilkes will bring the same qualities and characteristics demonstrated during his long tenure at NRCS to his role as undersecretary, which is exactly what is needed in that role.” *********************************************************************************** ERS: Interest in Antibiotic-free Chicken Increasing The Department of Agriculture's Economic Research Service this week released a report titled "The Market for Chicken Raised Without Antibiotics, 2012–17." The report studies consumer attitudes for chicken raised without antibiotics and their purchases of the products. The analysis grouped chicken products into three distinct market segments: classic, processed, and sausage. Between 2012 and 2017, household expenditure shares for antibiotic-free products grew substantially within each of the three market segments. In 2012, the products only represented four percent of the classic market, one percent of the processed market, and seven percent of the sausage market. By 2017, the products represented 11, nine, and 18 percent of the markets, respectively. Between 2012 and 2017, antibiotic-free products also commanded higher prices per pound than conventional chicken products. For classic, processed, and sausage chicken products, antibiotic-free products had prices that were on average 87, 55, and 48 percent greater than conventional products. *********************************************************************************** NFU Announces Campaign to Fight Monopolies in Agriculture National Farmers Union this week announced the Fairness for Farmers campaign as members gathered for a virtual fly-in. The effort seeks to rally Americans to urge lawmakers and the Biden administration to take concrete steps to curtail consolidation in agriculture, which NFU says negatively impacts farmers, ranchers and consumers. NFU President Rob Larew states, “We launched Fairness for Farmers because we have a President who is committed to taking on the challenge of fighting consolidation in agriculture.” The campaign seeks to encourage farmers and ranchers to share their stories online, engage with media, and build support for lawmakers and regulators to strengthen pro-competition laws and regulations. Through the campaign, NFU is calling for Packers and Stockyard Act reform, improved price discovery in beef markets, and reinvigorated antitrust enforcement. Larew added, “I do believe we are in for a fight,” but continues, NFU members are “not afraid of a fight and are ready to stand up for fairness.” *********************************************************************************** NASDA Elects New York’s Richard Ball as President The National Association of State Departments of Agriculture elected New York Agriculture Commissioner Richard Ball as President this week. Ball will serve as NASDA's 2021-2022 President and will host the 2022 NASDA Annual Meeting. The election was part of the conclusion of the organization’s annual meeting this week in Kentucky. Commissioner Ball states, “I am honored to be elected NASDA's new president and to lead as our states work together to ensure that agriculture continues to grow and thrive.” Also elected to NASDA's Board of Directors were Wyoming Director of Agriculture Doug Miyamoto as Vice President, Indiana Director of Agriculture Bruce Kettler as Second Vice President, and Arkansas Secretary of Agriculture Wes Ward as Secretary-Treasurer. Kentucky Commissioner of Agriculture Ryan Quarles will serve as NASDA's Past President, and Oklahoma Secretary of Agriculture Blayne Arthur will serve in the At-Large position. District board members include Pennsylvania’s Russell Redding, West Virginia’s Kent Leonhardt, Illinois’ Jerry Costello, and Washington’s Derek Sandinson.
| Rural Advocate News | Friday September 24, 2021 |
Friday Watch List Markets As usual, traders will be checking the latest weather forecasts and watching for a possible export sale announcement at 8 a.m. CDT. A report on U.S. new homes sales in August is due out at 9 a.m. At 2 p.m. CDT, USDA releases a quarterly Hogs and Pigs report and a monthly Cattle On-Feed report. Weather A cold front will bring some isolated showers to northern areas of the country Friday with mild and dry conditions across the rest of the country's growing regions. Despite the showers, harvest conditions should still be good for most of the country, though the eastern Midwest may need several days to dry out from this week's heavy rainfall
| Rural Advocate News | Thursday September 23, 2021 |
Report: EPA Proposing Cuts to Biofuel Blending Requirements A new report from Reuters claims the Environmental Protection Agency will propose cuts to blending requirements under the Renewable Fuel Standard. A document seen by Reuters reporters contained proposed cuts that would reduce blending mandates for 2020 to about 17.1 billion gallons and 18.6 billion gallons for 2021. Those levels are significantly lower than the 20.1 billion gallons finalized for 2020 before the pandemic. EPA is setting the 2020 and 2021 mandates retroactively and would set 2022 at about 20.8 billion gallons. Reuters suspects ethanol would take the biggest hit, dropping from 15 billion gallons to about 12.5 billion gallons in 2020, 13.5 billion in 2021, and 14.1 in 2022. However, the proposals, sent to the White House Office of Management and Budget last month, are not final. Republican Senator Chuck Grassley of Iowa told reporters Tuesday he expects EPA to release the proposal at the end of this week, possibly late Friday. *********************************************************************************** USDA Statement on ASF in Haiti The Department of Agriculture’s Animal and Plant Health Inspection Service calls the discovery of African swine fever in Haiti unfortunate, but not unexpected. Monday, a case of ASF was reported to the World Organization for Animal Health after confirmed by USDA's Plum Island, New York, facility. The sample was collected from a pig in a province bordering the Dominican Republic, where ASF was discovered this summer. In a statement, APHIS said it has numerous interlocking safeguards in place to prevent ASF from entering the United States. Pork and pork products from Haiti and the Dominican Republic are prohibited entry to the United States because of existing classical swine fever restrictions. After ASF was detected in the Dominican Republic, APHIS increased surveillance and safeguards in U.S. territories. APHIS continues to work with partners, including the U.S. Customs and Border Protection and the U.S. swine industry, to prevent ASF from entering the United States. *********************************************************************************** USDA to Host Virtual Data Users’ Meeting The Department of Agriculture’s National Agricultural Statistics Service will hold its biannual Data Users’ Meeting virtually next month. The Data Users’ Meeting is held to share recent and pending statistical program changes with the public and to solicit input on the programs. The event is organized by NASS in cooperation with the World Agricultural Outlook Board, Farm Service Agency, Economic Research Service, Agricultural Marketing Service, Foreign Agricultural Service and U.S. Census Bureau. Agricultural Statistics Board Chair Joe Parsons states, “This is an excellent opportunity for data users to be informed and involved in guiding the agricultural information USDA produces, both now and into the future.” The October 13 agenda includes agency updates followed by breakout sessions for participants to choose from one or more in-depth topics. On October 14, the floor will open to participants for questions and comments, and the event will close with additional breakout sessions. You can register online. *********************************************************************************** USSEC Announces Global Aquaculture Industry Advisory Council The U.S. Soybean Export Council Wednesday announced the convening of the Global Aquaculture Industry Advisory Council. The council includes fresh multistakeholder representation from 11 academia, civil society, industry, public sector, and sustainability certification organizations around the world. USSEC says the council reaffirms U.S. Soy farmers and the industry's commitment to shaping a growing and sustainable aquaculture industry. Approximately 3.3 billion people rely on seafood for almost 20 percent of their average per capita intake of protein, making it the world's largest traded food commodity. The amount of seafood produced by aquaculture now exceeds wild catch. Total fish production is expected to expand from 179 million metric tons in 2018 to 204 million metric tons in 2030. Aquaculture consumption increased 122 percent from 1990 to 2018, and production is projected to reach 109 million tons in 2030. The USSEC Global Aquaculture Industry Advisory Council will meet at least twice a year, with the first meeting September 2021 virtually. *********************************************************************************** DeLauro introduces Fresh Produce Procurement Reform Act House Appropriations Committee Chair Rosa DeLauro this week introduced the Fresh Produce Procurement Reform Act. The Connecticut Democrat says the legislation will increase and improve the Department of Agriculture’s procurement of fresh fruits and vegetables. The bill would require USDA to partner with growers, distributors, and food hubs to provide fresh, U.S.-grown fruits and vegetables to community organizations like schools, food pantries, and youth organizations while prioritizing socially disadvantaged farmers and entities and regional food inequities. The United Fresh Produce Association welcomed the legislation. United Fresh President and CEO Tom Stenzel states, “This is a monumental step in the right direction in addressing nutrition insecurity and access for the nine out of ten Americans who struggle to meet Dietary Guidelines’ fruit and vegetable recommendations.” Late last year, United Fresh convened a working group to embark on a months-long project of providing recommendations on how to reform purchasing practices to be more inclusive of fresh produce. *********************************************************************************** Bayer to Launch Organic Vegetable Seeds Portfolio Bayer this week announced it will expand its vegetable seeds offerings under the Bayer umbrella to include organically produced seed. The launch will focus on certified organic production in three key crops for the greenhouse and glasshouse market, including tomato, sweet pepper and cucumber. These will be followed by tomato rootstock varieties in 2023. Bayer's expanded portfolio is in direct response to increased customer need for high-quality organic seed. Global consumer demand for certified-organic products continues to grow and is predicted to drive market expansion. The global organic food seeds market was valued at 355 million in 2020 and is expected to grow to $480 million by 2025. The commercial launch for the new certified organic portfolio is planned for early 2022 and will focus on the high-growth organic markets of Canada, United States, Mexico, Spain and Italy with potential for future expansion based on market demand. Learn more at vegetables.bayer.com.
| Rural Advocate News | Thursday September 23, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The index of U.S. leading indicators for August is set for 9 a.m., followed by the Department of Energy's natural gas storage report at 9:30 a.m. Natural gas has more attention these days, now that U.S. supplies are down from a year ago, heading into winter. Weather As a system continues to wrap up over the Great Lakes, isolated showers will continue around Michigan, but with some streaks of moderate rain. Dry and mild conditions are in place for the rest of the country's growing regions, benefiting harvest and allowing soils to drain that saw moderate to heavy rainfall this week.
| Rural Advocate News | Wednesday September 22, 2021 |
African Swine Fever Confirmed in Haiti The World Organization for Animal Health this week confirmed finding African swine fever in Haiti. Haiti borders the Dominican Republic, which confirmed the virus was in-country this summer. The farm in Haiti with confirmed African swine fever is near the border. Haiti is conducting surveillance for the disease in pigs and imposed a quarantine to control the outbreak, according to Reuters. The U.S. Department of Agriculture found the disease last week through testing at the Foreign Animal Disease Diagnostic Laboratory on Plum Island, New York. USDA confirmed ASF in the Dominican Republic in July and issued a warning that Haiti was at high risk for infections. Meanwhile, last week, USDA issued a Federal Order suspending interstate movement of all live swine and swine products from Puerto Rico and the U.S. Virgin Islands to the mainland United States. African swine fever poses no health risks to humans but is deadly in pigs. *********************************************************************************** USDA, HHS Launch Resource Guide to Increase Rural Access to Child Care The Department of Agriculture and the Health and Human Services Department Tuesday unveiled a joint resource guide to help people in rural and Tribal communities increase access to childcare services. The guide was developed in partnership by USDA Rural Development and the Office of Early Childhood Development in HHS’ Administration for Children and Families. It provides useful information to help stakeholders in rural communities, including Tribes and Tribal organizations, address the need for improved access to affordable, high-quality childcare and early learning facilities through USDA and HHS funding and technical assistance resources. USDA Rural Development undersecretary Justin Maxson states that access to quality and affordable healthcare “enables parents to work, strengthens the economy and supports children’s overall development by laying the groundwork for future success in school and life.” The joint resource guide follows the Biden-Harris Administration’s announcement of the American Families, targeting investments to support America's children and families. *********************************************************************************** Growth Energy Urges President Biden to Uphold Clean Energy Commitments Growth Energy members call on President Joe Biden to stand behind his promise to take clear action on climate change by supporting low-carbon biofuels and upholding the Renewable Fuel Standard. During a virtual fly-in this week, 87 Growth Energy members sent a letter to President Biden outlining their take on the issue. The letter states, “If we are to achieve net-zero by 2050, we must use all tools in the toolbox – including biofuels.” The Growth Energy members point out that fuels like ethanol reduce carbon emissions by 46 percent over their full lifecycle. As for the Renewable Fuel Standard, the group says fossil fuel advocates continue to demand that EPA adopt Renewable Volume Obligations that fall far short of the President’s commitment to uphold the RFS. To help reduce carbon emissions and reach Biden's transportation decarbonization goals, the letter adds, "it is vital that conventional biofuel blending targets meet the15-billion-gallon minimum required by law." *********************************************************************************** Study Shows Ag Retailers Thoughts on Carbon Markets A new survey by Axiom Marketing shows the participation levels and interest in Carbon Markets from ag retailers, a top source of information for farmers. The research from the Minneapolis-based firm found that 70 percent of retailers do not understand how to verify carbon to participate in the carbon markets. Of the retailers surveyed, 50 percent say they are unsure if they will participate, with only eight percent saying the current incentive levels are enough to gain grower interest. The majority of retailers surveyed manage their grower's digital data and promote sustainable activities. This fact should make them an ideal conduit to help growers monetize carbon credits, according to Axiom. However, only 29 percent are actively participating and monetizing carbon. Axiom's survey also found that carbon credits may need to be higher to gain greater appeal. Sixty-five percent of respondents said they think farmers will require more than $10 per acre. *********************************************************************************** USTR Tai Meets with United Kingdom on Trade United States Trade Representative Katherine Tai this week met virtually with United Kingdom Secretary of State for International Trade Anne-Marie Trevelyan (tre-vely-an). Ambassador Tai emphasized her commitment to deepening bilateral trade and investment ties between the U.S. and the United Kingdom. The USTR office says Tai discussed USTR’s ongoing review of the U.S. – U.K. free trade agreement negotiations to evaluate how a potential agreement could support the Biden-Harris Administration’s broader Build Back Better agenda. Ambassador Tai and Trevelyan discussed the upcoming G7 trade ministerial. Back in March, the Biden Administration suspended some tariffs on goods from the United Kingdom. No longer a member of the European Union, the United Kingdom said in December that it will suspend tariffs on the U.S. tied to the World Trade Organization ruling against Boeing Airline subsidies. It was a move that trade experts say was a sign that the British government is hoping to resume negotiations with the United States. *********************************************************************************** Positive Outlook for Real Christmas Trees in 2021 Christmas tree growers are overcoming logistical challenges of COVID-19 and a heatwave in the Pacific Northwest to provide enough trees for 2021 demand. After close evaluation and making tree-by-tree decisions, growers expect to supply the same overall number of real Christmas trees to the marketplace this season as they had planned before the crises hit. With just about eight weeks to go until the real Christmas tree shopping season hits, industry experts are confident there will be a real Christmas tree for everyone who wants one this year. Oregon-based Christmas tree producer Bob Schaefer says, “We didn't run out of trees last year. Or in 2019. Or the year before that. In fact, we never have, and we don't intend to this year." With the artificial market hit hard by supply-chain disruption this year, and the real Christmas tree market returned to optimism, it's an especially relevant season for newcomers to natural trees.
| Rural Advocate News | Wednesday September 22, 2021 |
Wednesday Watch List Markets A report on U.S. existing home sales for August is due out at 9 a.m. CDT Wednesday, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m. The Federal Reserve's two-day meeting concludes at 1 p.m. with an announcement of any agreed policy changes. USDA's monthly cold storage report is set for 2 p.m. CDT. Weather A front will continue to bring moderate to locally heavy rain across the eastern growing areas Wednesday and there could be some flooding, which would cause some quality issues and delays for harvest. Much better conditions have developed west of this system for harvest, but more rain is needed for winter wheat in the Plains and Pacific Northwest.
| Rural Advocate News | Tuesday September 21, 2021 |
“No” to Immigration Reform – Ag Labor in Limbo? Senate Parliamentarian Elizabeth MacDonough ruled against the Democrats’ plan to provide eight million green cards as a part of their $3.5 trillion spending bill. The Hill says that decision makes getting immigration reform to President Biden’s desk that much harder. MacDonough’s guidance all but closes the door on Democrats’ chances to be able to use the spending bill as a potential pathway to citizenship for millions of immigrants. Democrats had wanted to provide those green cards for four groups of immigrants, including “Dreamers,” temporary protected status holders, agricultural workers, and essential workers. Getting legal permanent status allows people to eventually apply for permanent citizenship if they can meet other qualifications. Because Democrats are using reconciliation to pass a spending bill without GOP support, there are strict requirements regarding what can and can’t be included in the legislation. Democrats initially said they would keep trying to sway the Senate’s “referee” until the $3.5 trillion spending bill was on the Senate floor. Over the weekend, Senate Majority Leader Charles Schumer said his party would take an alternative proposal to MacDonough. Republicans argued before MacDonough that immigration reform was outside the scope of what could get passed under reconciliation. *********************************************************************************** BLM Headquarters Returning to Washington, D.C. Interior Secretary Deb Haaland says the leadership of the Bureau of Land Management will be moving back to Washington, D.C., from Grand Junction, Colorado. The Hagstrom Report says the Trump Administration had previously moved the office out west. “The bureau must have the appropriate structure and resources to serve the American public,” she says. The National Cattlemen’s Beef Association and the Public Lands Council condemned the decision. Kaitlynn Glover, NCBA Executive Director of Natural Resources and the Executive Director of the PLC says that more than 5.5 million acres have burned in catastrophic wildfires this year. “From Arizona to Minnesota, 14 states are going through an extreme drought that’s thrown rural communities into crisis,” she says. “In a normal season, this would be a disappointing decision, but in the middle of immense threats to public lands, ecosystems, wildlife, businesses, and residents, this is dangerously irresponsible.” Glover also says BLM’s operations did suffer as a result of their move, but “playing political football” with their mailing address is something western communities can’t afford. “Implementing another move now is a bad idea when the BLM staff’s time and attention are needed more than ever,” Glover says. *********************************************************************************** Taiwan Threatens to Take China Before the WTO Over the weekend, Taiwan threatened to take China before the World Trade Organization after Beijing suspended sugar apple and wax apple imports from the island nation due to pest concerns. Reuters says it’s the latest flare-up between the two countries over fruit. China’s customs administration has said more than once that it’s detected pests in the sugar apples and wax apples. The administration asked all of its offices to begin stopping customs clearance for those items starting on Monday. Taiwan’s Council of Agriculture Minister says China made the decision “unilaterally” without providing any scientific evidence to support the move. Taiwan told China it will take the country through the WTO’s dispute resolution mechanism if Beijing doesn’t respond to Taiwan’s request to settle the issue under the existing bilateral agreement between the two before September 30. Taiwan’s Foreign Minister Joseph Wu took it a step further on Twitter, noting that China was now “weaponizing trade” and the move should cast doubt over its recent application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership free trade group. Relations between the Taiwan and China are at their lowest point in years. *********************************************************************************** Federal Order Issued for ASF Protection Zone The USDA’s Animal and Plant Health Inspection Service is issuing a federal order suspending the movement of all pork and pork products from the Virgin Islands and Puerto Rico into the U.S. Shipments of live swine, swine germplasm, swine products, and swine byproducts are halted until APHIS can establish sufficient mitigations to authorize such movement. The federal order is the final action in a series of safeguards needed to establish an African Swine Fever protection zone in Puerto Rico and the U.S. Virgin Islands. When the zone is established, APHIS will have processes in place in both countries to prohibit the movement of live swine and products out of the protection zone, conduct appropriate surveillance within the protection zone to quickly detect any introduction of the disease, and conduct a public education campaign relating to biosecurity on farms and other establishments. APHIS will soon detail the actions taken to create the protection zone in a report to the World Organization for Animal Health. Once the report is submitted, APHIS will work to confirm that individual countries recognize and accept the zones, which will help ensure the continued flow of U.S. pork and live swine exports. *********************************************************************************** Nominations Open for the Rural Spirit Awards Osborn Barr Paramore is accepting nominations for the fourth annual Rural Spirit Awards. The awards are given out to recognize unsung heroes of rural America who “instill hope, solve problems, and commit to stepping up to meet the needs of their communities” as the country faces ongoing challenges related to COVID-19. OBP is looking to celebrate people who support and improve rural America through community service and economic development. Three award winners will be named in three categories. The Community Service Award honors an individual who exhibits the rural spirit through exceptional service in the name of community growth. The Next Gen Award Recognizes an individual 21 and under. Any potential Next Gen Award winner demonstrates uncommon leadership through community service efforts or innovative thinking. The Rural Advocacy Award celebrates a person who proudly embodies the heart of rural America, working hard to spur economic development, creating jobs, or advocating for growth. The public can go to www.RuralSpiritAwards.com and nominate deserving individuals. The nomination period closes October 11 at 11:59 p.m., CDT. Winners each receive $2,000 to donate to a nonprofit organization of their choice, with donations made in the winner’s name. Winners will be announced and recognized at an awards celebration on Thursday, October 21. *********************************************************************************** NCGA Looking for Research Projects on Aflatoxin That National Corn Growers Association announced a new round of research grants to help farmers manage aflatoxin issues. The Aflatoxin Mitigation Center of Excellence (AMCOE) is accepting letters of intent from principal investigators, co-principal investigators, and collaborators. There’s a limit of $75,000 per year and applications will be accepted through October 15. AMCOE’s Research Program will offer grants for projects focused on solving profit-robbing aflatoxin issues for farmers. The grants will be awarded to researchers focusing on one of six priority areas. “Through the efforts of AMCOE, substantial progress has been made in understanding and managing aflatoxin and other mycotoxins,” says Charles Ring, a Texas corn grower and AMCOE Committee Chair. “NCGA administers AMCOE to create a united approach to aflatoxin research, with the primary goal to deliver advanced strategies, tools, and results to growers.” While corn farmers in Southern states experience aflatoxin challenges annually, these challenges may present themselves in any corn region of the U.S. when the crop comes under stress. NCGA points out that the benefits of this research are national in scope. For more information about AMCOE, go to ncga.com.
| Rural Advocate News | Tuesday September 21, 2021 |
Tuesday Watch List Markets A report on U.S. housing starts is due out at 7:30 a.m. CDT Tuesday and is the only significant report of the day. Traders will be influenced by Monday afternoon's Crop Progress report and the latest weather forecasts. Soybean export sales have been active lately and traders will watch for a possible announcement from USDA at 8 a.m. Weather A front combined with moisture from the Gulf of Mexico will lead to wet conditions from the Great Lakes down to the Gulf of Mexico while drier conditions build in behind the front through the Plains. Rain could be heavy in spots, leading to quality issues and delays for maturation and harvest while conditions improve to the west.
| Rural Advocate News | Monday September 20, 2021 |
House Democrats Ask Leadership for Extra Funds to Prevent ASF A group of House Democrats sent a letter to leadership asking for $75 million in funding for the Animal and Plant Health Inspection Service to help prevent and prepare for a possible African Swine Fever Outbreak in the U.S. A total of seven House Democrats are concerned about an ASF outbreak in America’s swine herds. They’re asking House Leadership to include the requested funds in the next continuing resolution or supplemental appropriations package that moves through Congress. “A confirmed ASF positive sample in any U.S. state or territory would be devastating to the American pork industry and rural economy,” they wrote in the letter. “An outbreak in any part of the U.S. would restrict pork producers from being able to participate in global trade.” The representatives also point out that America’s pork producers are a crucial part of the domestic food supply chain and contribute close to seven billion dollars in global exports, which makes the additional investment in APHIS vital to the safety of America’s food supply. In July, APHIS confirmed the presence of ASF in samples collected from hogs in the Dominican Republic, raising concerns about a possible outbreak that could reach the United States. *********************************************************************************** Barge Shipping Costs Spiking After Hurricane Ida Barge freight costs for moving grains from the Midwest rose sharply due to the continuing logistical problems over two weeks after Hurricane Ida hit the Delta Region. As grain handlers are scrambling to get operations going again at the Gulf of Mexico, China booked four to six bulk cargoes of soybeans from Brazil for shipping in October and November, which is the peak of the U.S. export period. That agreement between China and Brazil is fueling industry concerns that terminal capacity at the Gulf will be limited into the next month. Cash grain traders tell Reuters that Gulf shipping problems are causing the cost for barge freight to rise along Midwest rivers. Unloading barges arriving at the Gulf is being delayed, which is creating a shortage of empty barges needed upriver as corn and soybean harvest revs up in the Midwest. Adding to the sense of urgency is the fact that crops are maturing faster than normal in key states like Minnesota, Iowa, and Illinois. Southern states are also much farther along in their harvest than northern states. “You have these southern states, and you need to get all of that through the system before the really big volume comes from places like Missouri, Illinois, and Iowa,” says Mike Steenhoek (STEEN-hook), Executive Director of the Soy Transportation Coalition. *********************************************************************************** NBB Renews Request to Meet with EPA Administrator Regan The National Biodiesel Board delivered a letter to Michael Regan, Administrator of the Environmental Protection Agency, that renewed a May 2021 request to meet with him. The NBB wants to discuss the findings from a new study called “Assessment of Health Benefits from Using Biodiesel as a Transportation Fuel.” The group points out that the study quantifies, at a community level, the public health benefits and resulting economic savings of using higher blends of biodiesel. The findings complement those of a new EPA Report that details the unequal impacts of carbon and associated emissions on socially disadvantaged communities. “We believe that our industry’s goals are consistent with your agency’s plans to address carbon and focus on environmental health,” says Kurt Kovarik, NBB Vice President of Federal Affairs. “Replacing petroleum with drop-in alternatives like biodiesel and renewable diesel will immediately reduce carbon. Also, biodiesel and renewable diesel reduce particulate matter and hydrocarbon emissions that contribute to cancer, lung, and heart disease rates.” The NBB study shows that switching from petroleum to 100 percent biodiesel in transportation could annually bring the communities studied fewer asthma attacks and other lung problems, lost workdays, and premature deaths as well as a reduction in cancer risk. “The EPA report doesn’t really discuss solutions,” Kovarik adds, “which we can provide.” *********************************************************************************** McKinney Named New CEO of NASDA The National Association of State Departments of Agriculture announced that Ted McKinney is the organization’s new Chief Executive Officer. The group says he will lead NASDA in amplifying the voice of state departments of agriculture in Washington, D.C., seeking policy solutions for our food system, and expanding and deepening NASDA’s partnerships. “Representing a unified voice from all 50 states and four territories, NASDA is a leader and a problem solver on our nation’s most important agricultural issues,” McKinney says. “I’m honored to get chosen for the position, and I’m delighted to continue serving our country through advocating for state departments of agriculture. Moving forward, I’m excited to set new horizons for NASDA and ensure that agriculture thrives in our states and territories.” McKinney most recently was the USDA’s Undersecretary for Trade and Foreign Agricultural Affairs. He led the development and implementation of the department’s trade policy, facilitated foreign market access, and promoted opportunities for U.S. agriculture. “Mr. McKinney’s exceptional background reflects the spirit of NASDA’s ambition to unite state, federal, and industry leaders around the best solutions for farmers, ranchers, and communities they serve,” says Ryan Quarles, President of NASDA. “His advocacy experience will bring strength to NASDA’s federal partnerships.” *********************************************************************************** Wheat Export Sales Jump to a Marketing-Year High Export sales of wheat rose week-to-week, while corn and soybean sales in the first full week of the 2021-2022 marketing year were impressive. The USDA says wheat sales to overseas buyers totaled 617,000 metric tons, a marketing-year high point, in the seven days ending on September 9. That’s 59 percent higher than the previous week and well above the prior five-year average. Nigeria bought almost 329,000 metric tons, followed by Mexico, South Korea, and Taiwan. Exports for the week hit 514,100 metric tons, 32 percent above the previous week. Corn sales in the first full week of the marketing year totaled over 246,000 metric tons. Mexico was the largest buyer at 154,300 metric tons, with exports of corn for the week totaling 192,000 tons. Soybean sales to offshore buyers totaled 1.26 million metric tons. China bought just over 945,000 metric tons, the top total for the week. Soybean weekly exports were 244,400 metric tons. *********************************************************************************** #FarmON Concert to Support National FFA Foundation The Farm Journal’s #FarmON Benefit Concert on Monday night, September 20, will feature some of today’s top country music voices. At the same time, viewers who tune in can also show their support for the FFA and the work they do to develop future leaders in agriculture. Donations from the benefit concert will go to the National FFA Foundation. The hour-long concert is headlined by Easton Corbin, a three-time American Country Music Award winner. Alex Miller, who competed on American Idol season 19, will also perform. Both musicians are FFA alumni. “We are excited to provide this unique concert experience as a thank you to farmers, ranchers, and everyone who keeps our food system moving forward,” says Charlene Finck, president of Farm Journal. “What’s even more exciting is this concert features performers who have direct ties to FFA, which makes it personal to them as they team with us to support the National FFA Foundation.” The #FarmON Benefit Concert is free to all viewers and will start on Monday, September 20, at 7 p.m. Central Time. It will get shown on RFD-TV and live-streamed at www.AgWeb.com. Register for the concert for free or donate to the National FFA foundation at www.FarmJournalFieldDays.com/Register.
| Rural Advocate News | Monday September 20, 2021 |
Monday Watch List Markets Back from the weekend, traders will be comparing notes on early harvest anecdotes, checking the latest weather forecasts and will also watch for any news of export sales. USDA's weekly grain inspections report is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. USDA will post its first estimate of soybean harvest progress, along with a second report on the corn harvest. Weather A frontal boundary moving through the Corn Belt will produce some areas of moderate rainfall and gusty winds on Monday. Tropical moisture continues across the Southeast while moisture is pulled northward over the eastern Midwest as well. The showers will bring delays to maturing crops and harvest. The rain will mostly miss the southwestern Plains, which are in need of more moisture for winter wheat establishment, but it is turning drier behind this system.
| Rural Advocate News | Friday September 17, 2021 |
USDA Extends Deadline to Apply for Pandemic Assistance to Livestock Producers The Department of Agriculture is providing additional time for livestock and poultry producers to apply for the Pandemic Livestock Indemnity Program, or PLIP. Producers who suffered losses during the pandemic due to insufficient access to processing may now apply for assistance for those losses and the cost of depopulation and disposal of the animals through October 12, 2021, rather than the original deadline of September 17, 2021. PLIP is part of USDA’s Pandemic Assistance for Producers initiative. Farm Service Agency Administrator Zach Ducheneaux (DOO-shah-no) states, “We want to ensure that all eligible producers have the opportunity to apply for this critical assistance.” PLIP provides payments to producers for losses of livestock or poultry depopulated from March 1, 2020, through December 26, 2020, due to insufficient processing access as a result of the pandemic. Payments are based on 80 percent of the fair market value of the livestock and poultry and for the cost of depopulation and disposal of the animal. Eligible livestock and poultry include swine, chickens and turkeys. *********************************************************************************** U.S. Dairy Industry Advances Solutions to Deliver a More Sustainable and Secure Food System The U.S. dairy community is reaffirming its commitment to be part of the climate solution, pledging to address its total greenhouse gas footprint. The industry is also setting goals to achieve carbon neutrality, optimize water use and improve water quality by 2050. In addition, U.S. dairy is strengthening equitable access to nutritious dairy foods worldwide while ensuring animal and employee welfare through a transparent production system. Ahead of the Food Systems Summit, the UN solicited "game-changing" ideas, initiatives and innovations that can bring about positive change. The U.S. dairy industry responded with three solutions announced in a news release Thursday. The goals include the U.S. Dairy Net Zero initiative, The National Dairy Farmers Assuring Responsible Management Program and School Nutrition and Food Bank Partnerships. Innovation Center for U.S. Dairy chairman Mike Haddad (hah-dad) states, “As food systems transformation takes center stage, the U.S. dairy sector is undergoing a transformation of its own.” *********************************************************************************** Cryan Joining AFBF as Chief Economist The American Farm Bureau Federation Announced Thursday Dr. Roger Cryan (Cryin’) will join the organization as chief economist next month. Cryan joins Farm Bureau after serving as director of the Department of Agriculture’s Economics division for the Agricultural Marketing Service for nine years. He previously served as Vice President for Milk Marketing and Economics at the National Milk Producers Federation. At NMPF, Cryan developed and successfully led efforts to change federal milk pricing and marketing regulations, and served as an appointed member of the USDA Advisory Committee on Agricultural Statistics. Earlier in his career, Dr. Cryan served as an economist for the Federal Milk Market Administrator in Atlanta, Georgia. Farm Bureau says he has earned several awards, including the prestigious Bruce Gardner Memorial Prize for Applied Policy Analysis, presented by the Agricultural and Applied Economics Association, for his work developing the dairy payment provisions in the Coronavirus Food Assistance Program in 2020. *********************************************************************************** Latest Drought Monitor Shows Dryness Extending in the Midwest The latest U.S. Drought Monitor shows short-term dryness expanding in the Midwest as the Western U.S. deals with a prolonged, severe drought. The Midwest dryness favors summer crop maturation fieldwork, including harvest efforts and winter wheat planting, but is reducing topsoil moisture. Meanwhile, long-term drought issues persist across the upper Midwest, despite some recent rainfall. The Department of Agriculture also reported that topsoil moisture was at least one-third very short to short in each Midwestern State except Wisconsin. Short-term dryness and drought has become more apparent in recent weeks across the southern section of the High Plains, including parts of Kansas and Colorado. Above-normal temperatures largely offset any benefit from patchy rainfall across northern California and the interior Northwest. Meanwhile, USDA reported that at least one-half of the acreage devoted to rangeland and pastures was rated in very poor to poor condition in eight of the 11 Western States. *********************************************************************************** AEM Welcomes Precision Agriculture Loan Act Farm state Senators this week introduced the Precision Agriculture Loan Act. Nebraska Republican Deb Fischer and Minnesota Democrat Amy Klobuchar say their bipartisan legislation would create a program within the Department of Agriculture to provide loan financing to farmers and ranchers interested in purchasing precision agriculture equipment. Precision agriculture is defined as a wide range of new technologies in farming and ranching that can allow producers to reduce their environmental footprint, lower costs, and improve productivity. The Association of Equipment Manufacturers applauded the legislation Thursday. AEM President Dennis Slater states the legislation “will give U.S. farmers a whole new set of tools to help achieve climate goals while continuing to feed and fuel the world.” AEM’s own research shows that increased adoption of precision agriculture technology in the crop farming industry can have a significant environmental and economic impact for farmers. Senator Fischer adds the bill “will allow more producers to invest in the equipment they need to make their operations more efficient, environmentally-friendly, and productive.” *********************************************************************************** Cargill Introduced Regenerative Ag Revenue Stream for Farmers One year ago, Cargill committed to advance regenerative agriculture practices across ten million acres of land in North America by 2030. Cargill has been enrolling farmers in Cargill RegenConnect, a new regenerative agriculture program that pays farmers for improved soil health and positive environmental outcomes, including payment per metric ton of carbon sequestered. The new program connects farmers to the growing carbon marketplace and will help scale the voluntary adoption of regenerative agriculture practices. Farmers enrolled in Cargill RegenConnect will implement regenerative agriculture practices of their choice beginning this fall into the next planting season. Practices that will qualify include cover crops and reduced- or no-tillage. In a study of 100 farmers across nine states conducted by The Soil Health Institute and supported by Cargill, researchers found that soil health management systems increased incomes for 85 percent of farmers growing corn and 88 percent of farmers growing soybeans. Additional details regarding Cargill's full suite of farmer programs can be found at CargillAg.com.
| Rural Advocate News | Friday September 17, 2021 |
Friday Watch List Markets The University of Michigan's consumer sentiment index is due out at 9 a.m. CDT Friday and is the only official report of the day. Traders will do their usual thing of checking out the latest weather forecasts and pausing at 8 a.m. to see if USDA has another export sale to report. Weather Showers continue in association with the remnants of Nicholas across the Delta and Southeast, producing some locally heavy rainfall that could damage cotton and soybeans. Showers across the Central Plains into the Midwest will continue to wane this morning and be less severe along a front later today.
| Rural Advocate News | Thursday September 16, 2021 |
Kansas City Southern Accepts Canadian Pacific Merger Agreement Kansas City Southern Wednesday announced the termination of a merger agreement with Canadian National Railway. KCS has entered a merger agreement with Canadian Pacific Railway, presumably ending the bidding war for KCS. Kansas City Southern determined the proposal from Canadian Pacific continues to demonstrate a “Company Superior Proposal” under the pending agreement with Canadian National. Upon closing of Canadian Pacific’s voting trust, each share of KCS common stock will be exchanged for $90 in cash and 2.8 shares of CP common stock. Closing will be subject to approval by the stockholders of Canadian Pacific and KCS and regulatory approvals. In connection with the termination of the Canadian National merger agreement, KCS is paying CN a breakup fee of $700 million. Kansas City Southern will also return an additional $700 million Canadian National paid to KCS. Kansas City Southern will schedule a new Special Meeting of Stockholders for KCS stockholders to vote on the CP merger agreement. *********************************************************************************** NCC Releases Inaugural Sustainability Report The National Chicken Council Wednesday released its inaugural sustainability report. The report provides a comprehensive overview of U.S. chickens raised for meat, known as “broilers,” and the industry’s collective progress in its environmental, broiler welfare and social impact journey, as well as efforts to build a more sustainable food system. The 2020 U.S. Broiler Chicken Industry Sustainability Report was submitted to the Scientific Group of the U.N. Food Systems Summit 2021, ahead of the U.N. Food Systems Summit later this month. NCC's report addresses six essential industry topics, including air, land and water, broiler health and welfare, employee safety and well-being, food and consumer safety, community support and security, employee safety and well-being. The report finds that between 2010 and 2020, land use decreased 13 percent, greenhouse gas emissions fell 18 percent, and water consumption declined 13 percent. View the 2020 U.S. Broiler Chicken Industry Sustainability Report here on the NCC website, nationalchickencouncil.org. *********************************************************************************** Red Angus Association Approves Gene-Edited Traits for Animal Registration The Red Angus Association of America announced Wednesday they will provide herdbook registry of Red Angus animals carrying gene-edited traits for heat tolerance and coat color. Both trait approvals originate from specific genetic alterations designed and submitted by Acceligen, a technology company pioneering commercialization of gene-edited food animals. Acceligen has already bred and registered animals that express a trait known for better tolerance to tropical and sub-tropical heat. Black-to-red gene edits have also been made on multiple calves that will be born soon. These traits are a part of Acceligen's business portfolio that focuses on providing opportunities to the global cattle industry for better genetic management of animal well-being and health. Red Angus is the first beef breed organization to accept gene-edited animals into their registry. Tom Brink, the association’s CEO, states, “In considering the future, we see an opportunity to accelerate the Red Angus breed's genetic progress by selectively allowing gene-edited animals into our population.” *********************************************************************************** Meat Institute: Scapegoating Industry Does Not Help Consumer The North American Meat Institute this week claimed the Secretary of Agriculture’s transparent attempts to scapegoat the meat and poultry industry to shift blame for inflationary prices will not help consumers. NAMI President and CEO Julie Anna Potts states, “Americans are experiencing firsthand what the Secretary refuses to acknowledge, the effects of COVID and lack of labor are hurting consumers, and nothing proposed by the Secretary of Agriculture on the structure of the meat and poultry industry will help families struggling to pay for groceries.” After repeated attempts to convey the challenges faced by meat and poultry packers and processors in meeting extraordinary consumer demand to Biden Administration officials, Potts sent a letter to Secretary Vilsack. The letter is in response to Vilsack’s comments during a White House press briefing earlier this month. At the time, Vilsack comments that the structure of the meat and poultry industry is causing price inflation for meat and poultry products. *********************************************************************************** Senator Stabenow to Keynote United Fresh Washington Conference Senator Debbie Stabenow will keynote Wednesday morning's General Session Breakfast, September 22, during next week's United Fresh 2021 Washington Conference. The Michigan Democrat and Chair of the Senate Ag Committee will share insights on how to best address current policies opportunities, and obstacles facing the produce industry. In announcing the keynote, a United Fresh spokesperson states, “Senator Stabenow plays a powerful and unique role in shaping our nation’s agriculture and nutrition policies.” Next week’s Washington Conference, September 20-22 in Washington, D.C., will include face-to-face Congressional meetings as the produce industry advocates for critical issues impacting the fresh produce supply chain, including labor, food safety, nutrition policy, infrastructure and more. The event also features a Produce Advocacy Bootcamp for attendees new to communicating with Congress, workshops on public policy issues, general sessions with national leaders, and networking events as industry leaders come together in common purpose to build a stronger business climate. *********************************************************************************** Consumer Food Prices Up Slightly Again The monthly Consumer Price Index shows a further increase in food prices. The food index increased 0.4 percent in August after larger increases in recent months. The food at home index increased 0.4 percent over the month as four of the six major grocery store food group indexes rose. The index for meats, poultry, fish, and eggs rose 0.7 percent over the month, as the beef index rose 1.7 percent. The index for fruits and vegetables rose 0.2 percent in August after declining in July. The index for dairy and related products declined in August, falling one percent after rising in each of the previous four months. The index for cereals and bakery products was unchanged in August after increasing 1.2 percent in July. The food at home index rose three percent over the past 12 months. Five of the six major food group indexes increased. The only group to decline was dairy and related products, which fell 0.5 percent over the last 12 months.
| Rural Advocate News | Wednesday September 15, 2021 |
University of Missouri FAPRI Baseline Report: Farm Income Could Decline Next Year Higher commodity prices are contributing to a sharp increase in U.S. net farm income in 2021. However, under current policies, farm income could drop again in 2022 as government payments decline and production expenses rise. That's according to the September University of Missouri Food and Agricultural Policy Research Institute September baseline report. In 2022, FAPRI predicts net farm income declines by $23 billion, and net cash income falls even more sharply. Reduced government payments and higher production expenses explain the decline, as there is little net change in farm receipts. In later years, projected net farm income remains fairly steady in nominal terms at just under $100 billion each year. Rising asset values and slower growth in debt reduces the sector’s debt-to-asset ratio in 2021 and 2022, temporarily reversing the trend of previous years. Lower projected farm income can halt the rise in farm real estate values in 2023, and the debt-to-asset ratio again begins to increase. *********************************************************************************** Get With Your Tax Advisor Now on Potential Tax Changes Agriculture tax advisory firm KCoe Isom welcomed the proposed tax package that would drop previously suggested changes to the "step-up" in basis. While the legislation is far from the finish line and the proposal is far from final, KCoe's tax advisors noted that the proposed language includes changes that could significantly impact many farmers and ranchers. The firm says farmers and ranchers need to evaluate and address potential tax impacts before year-end. Other changes in the proposed tax bill, including accelerating the reversion of prior estate tax rates and estate tax exemptions, will have the potential to affect farmers without adjustments. According to KCoe's tax advisors, there are opportunities to avoid some anticipated negative effects with proper year-end planning. A spokesperson for the firm states, "Every farmer and other agriculture business owner should be talking with their tax advisors and legal counsel today to evaluate the proposed changes in this bill." *********************************************************************************** Ag Committee Leaders Applaud CFTC Nominations The leadership of the Senate and House Agriculture Committees applaud the recent nominations by President Joe Biden to the Commodity Futures Trading Commission. President Biden nominated Rostin Behman as CFTC chair, and Kristin Johnson and Cristy Goldsmith Romero as commissioners. In 2019, Behnam spearheaded the establishment of CFTC's Market Risk Advisory Committee's Climate-Related Market Risk Subcommittee. Behnam joined the commission in 2017 as a commissioner, and since January 2021, has served as the Acting Chairman. Johnson is the Asa Griggs Candler Professor of Law at Emory University School of Law. Finally, Romero is the Special Inspector General for the Troubled Asset Relief Program. House Agriculture Chairman David Scott says, “I am very pleased with the nominees President Biden has tapped to help lead the CFTC.” Senate Agriculture Chair Debbie Stabenow adds, “I was very fortunate to work with Russ for many years and know that he is very knowledgeable and passionate about his work at CFTC.” *********************************************************************************** Trevino Nominated for USTR Chief Agricultural Trade Negotiator President Joe Biden this week nominated Elaine Trevino for chief agricultural trade negotiator at the United States Trade Representative’s Office. Trevino is President of the Almond Alliance of California and served as a Deputy Secretary at the California Department of Food and Agriculture for Governor Arnold Schwarzenegger and Governor Gray Davis. In the announcement, the White House states Trevino "understands tariff and nontariff barriers to trade and the importance of maintaining America’s strong trade agreements and global positioning.” American Farm Bureau Federation President Zippy Duvall welcomed the nomination, stating, “Her strong roots in agriculture and her experience in America’s largest exporting state have prepared her for the challenges of representing the nation on trade issues.” Duvall adds that opportunities to create new trade agreements with the European Union and Great Britain, as well as expanding the China Phase 1 agreement, make “filling this position with the most qualified person extremely important.” *********************************************************************************** Near Record Number of Farmland Sales The pace of land sales picked up this year for Farmers National Company. The company reports it is on track for a near-record or record sales year on several fronts. The higher land prices have spurred an increased number of landowners to sell, with some wanting to complete the sale before year-end due to uncertainty about potential tax law changes. The question becomes whether the increased sale activity will continue into 2022. Based on the calls from landowners that Farmers National Company is receiving, the company says land sales will continue to be brisk into the new year. The higher land prices continue to come into play in the sale or keep decision-making of landowners now and as they look to the immediate future. Many landowners are deciding to sell now and capture the current high prices. However, other landowners are pushing the decision to sell into 2022. *********************************************************************************** Secretary Vilsack to Attend G20 Agriculture Ministerial in Italy Agriculture Secretary Tom Vilsack heads to Italy this week to attend the G20 Agriculture Ministers’ Meeting. The Department of Agriculture says Vilsack will reaffirm the United States’ commitment to international engagement on agriculture and make the case for joint action on climate, food security, agricultural innovation, and closer global integration through trade. The meeting seeks to build consensus around shared concerns ahead of the G20 Leaders’ Summit 2021, planned for late October in Rome. The G20’s membership, which includes 19 countries and the European Union, represents 60 percent of the world’s population, 80 percent of global GDP and 75 percent of global exports. Vilsack will deliver remarks at the G20 Open Forum on Sustainable Agriculture Thursday, along with planned personal meetings with counterparts from the European Union, Brazil, Italy and Spain. During the meeting Saturday, Vilsack will deliver remarks focusing on the G20's contributions to the United Nations' upcoming Food Systems Summit and Climate Change Conference.
| Rural Advocate News | Wednesday September 15, 2021 |
Wednesday Watch List Markets The Federal Reserve releases its report on U.S. industrial production for August at 8:15 a.m. CDT Wednesday, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m., including ethanol production. The National Oilseeds Processors Association will release its estimate of members' soybean crush in August later Wednesday morning. Traders will continue to monitor the latest weather forecasts and keep an eye out for any new export sales. Weather Tropical Depression Nicholas was still located over Louisiana but has weakened considerably. Rain may still be heavy around Louisiana and southern Mississippi, which could induce flooding across the southern Delta for maturing soybeans and cotton, but the system is likely to become a remnant low either today or tomorrow. A front will still produce some showers across the southern Midwest and Southern Plains as well, generally with light to locally moderate amounts.
| Rural Advocate News | Tuesday September 14, 2021 |
JBS Grand Island Meatpacking Fire Halts Processing A fire at the JBS Grand Island, Nebraska, processing facility halted beef packing production Monday. The Grand Island Fire Department explained via Twitter the fire was burning the roof of the facility’s rendering section. The JBS Grand Island facility is a two-shift, beef-processing plant employing more than 3,600 people. The facility’s Facebook page contained a post stating, “Fabrication and slaughter A and B shift will not be working” Monday. The facility has a daily processing capacity of 6,000 head and slaughters roughly five percent of U.S. cattle. JBS in June announced a $130 million facility improvement effort to increase production capacity at both the Grand Island facility and another in Omaha. The impacts of the fire and how it was started are unclear. JBS told Reuters Monday they expected to reopen the facility Tuesday (today). In 2019, a fire at Tyson’s Holcomb, Kansas facility took out 30,000 head of weekly processing capacity, with immediate and still lingering market disruption issues. *********************************************************************************** House Ag Dems Approve Spending Measure House Ag Committee Democrats Monday approved an incomplete spending package as part of the Build Back Better Act. The legislation will be added with sections approved by other committees to be compiled by the House Budget Committee later this month. The agriculture spending legislation includes $18 billion in rural job-promoting investments through the Department of Agriculture’s Rural Development and $7.75 billion to support agriculture research and infrastructure. The bill also includes $1 billion to support expanded biofuel infrastructure, $4 billion for a new Rural Partnership Program, $2.6. billion for the Rural Energy for America Program, and $40 billion for forest-related programs. It does not yet include USDA’s voluntary conservation programs. Iowa Democrat Cindy Axne, who supported the spending package, states, “While I am still withholding my final decision on this package until I see the full bill, seeing these investments included will be a critical part of my choice.” *********************************************************************************** Dairy Checkoff Unveils New Fuel Up to Platy 60 Website The dairy checkoff just updated the farmer-founded Fuel Up to Play 60 program to help students and educators navigate the school year. Fuel Up to Play 60, created by the dairy checkoff and National Football League, developed an easy-to-navigate website educator dashboard and an enhanced student app to meet these needs inside and outside the classroom. Beth Engelmann of Dairy Management Inc. states, "One of the checkoff's key priorities is ensuring dairy products and farmers' story are relevant with today's younger consumers." The website launched Monday to coincide with the "Start Fresh with Fuel Up to Play 60" initiative. The site allows educators and parents to learn about the program and access resources focused on dairy nutrition and dairy farmers' care for the environment. Fuel Up to Play 60 also will work with NFL players, dietitians and educators to share ideas on how they fuel their days on social media channels. Find the new website at www.FuelUpToPlay60.com. *********************************************************************************** AFT Adds to Policy Team to Tackle Climate Issues American Farmland Trust just filled a new position on its policy team to tackle climate issues. Samantha Levy joins the policy team as climate policy manager to lead the organization's climate policy agenda. American Farmland Trust is preparing a multiyear strategy to advance transformational climate policy at the state and federal level, including the 2023 Farm Bill. In its most recent report, the Intergovernmental Panel on Climate Change supported the mounting interest among policymakers in regenerative farming practices as a way to mitigate climate change. A report by American Farmland Trust demonstrates that widespread adoption of just two regenerative practices on U.S. farmland, cover crops and no-till, would sequester the carbon equivalent of removing up to 260 million automobiles from American roadways each year. Previously, Levy led AFT’s climate work in New York, collaborating with farm and environmental groups to incorporate farmers into the state's Climate Leadership and Community Protection Act. *********************************************************************************** U.S. Tractor and Combine Sales Increased in August U.S. tractor sales increased last month compared to 2020 while combine sales jumped 19.8 percent, according to the Association of Equipment Manufacturers monthly sales report. Combine sales posted the second month in a row of growth near 20 percent in the United States, and total farm tractor sales climbed 9.9 percent. Sub 40 horsepower tractor sales were up 8.7 percent, and mid-sized, 40-100 horsepower, sales were up 5.4 percent. Heavy-duty units saw significant growth, with the articulated four-wheel drive segment leading the way for the fourth straight month by climbing 40.4 percent to 306 units sold. Year-to-date farm tractor sales remain up 13.3 percent and combines up 13.8 percent. For Canada, total farm tractor sales were up 1.9 percent and combine sales were up 28.7 percent. AEM’s Curt Blades states, “Farmers investing in more of these big machines is another indicator of that farmer optimism we’ve been seeing.” *********************************************************************************** Weekly Fuel Prices Move Lower Gasoline and diesel prices slipped in the last week as refineries recover from Hurricane Ida. However, Tropical Storm Nicholas threatens refineries in the Houston area, and could pause further declines this week. The weekly average gas price fell 1.9 cents per gallon to $3.15 and the average diesel price slipped less than a half-cent to $3.29 per gallon. Gas Buddy analyst Patrick De Haan states, “While Nicholas would appear to be a minor storm, we could see a deluge of water – the same issue that caused some significant damage in Ida’s wake to refineries in Louisiana.” Meanwhile, gasoline demand continues to decline for the fourth week in a row as the summer driving season ends. Nationally, weekly gasoline demand fell 1.8 percent from the prior week. Crude oil prices have seen upward as some oil production in the Gulf of Mexico remains offline following Hurricane Ida, and oil inventories are down six percent from the five-year seasonal average.
| Rural Advocate News | Tuesday September 14, 2021 |
Tuesday Watch List Markets The U.S. Labor Department reports on the August consumer price index at 7:30 a.m. CDT Tuesday, the only official report of the day. Traders will be watching the latest weather forecasts and for any news of an export sale. Weather Scattered showers will move through the Central Plains to the Midwest along a front on Tuesday and could be severe. Tropical Storm Nicholas, which was briefly a hurricane Monday night, will produce heavy rainfall for eastern Texas into Louisiana on Tuesday and could cause some flooding. This could impact recovery efforts in Louisiana to get power restored to terminals around the Port of New Orleans as well as flood mature cotton and soybean crops in the southern Delta.
| Rural Advocate News | Monday September 13, 2021 |
Court Denies Petition for Rehearing on Year-Round E15 The D.C. Circuit Court of Appeals denied a petition for a rehearing in the case of the American Fuel and Petrochemical Manufacturers vs. EPA Decision. In that case, the court vacated a 2019 regulation allowing year-round sales of E15. The Renewable Fuels Association, Growth Energy, and the National Corn Growers Association released a joint statement expressing disappointment. “Our petition for a rehearing was an opportunity for the D.C. Circuit Court to remedy a decision that runs counter to legal precedent and which, if maintained, threatens our nation’s rural economy and progress on moving toward a clean energy future,” the groups say in the statement. “Today’s petition denial is another hurdle to ensuring year-round access to low-carbon E15, but due to the timing, American drivers and retailers will be able to finish out the E15 summer driving season without disruption to their access to cleaner fuel choices at the pump.” The groups say moving forward that they’ll continue to push for a permanent remedy long before the start of next year’s summer driving season. In 2019, the EPA issued its final rule extending the Reid Vapor Pressure volatility waiver to E15, allowing the fuel to be sold year-round in conventional gasoline markets. Oil refiners soon after challenged the rulemaking in the D.C. Court of Appeals. *********************************************************************************** USDA Accepts Over 2.5 million Acres in Grassland CRP Signup The USDA accepted offers for more than 2.5 million acres from agricultural producers and private landowners for enrollment through this year’s Grassland Conservation Reserve Program Signup. This is double last year’s enrollment and brings the total acres enrolled across all CRP signups in 2021 to more than 5.3 million acres, surpassing USDA’s goal of four million acres. Producers and landowners submitted offers for nearly four million acres in Grassland CRP, the highest in the signup’s history. “This increased interest in working lands conservation serves two purposes,” says Zach Ducheneaux (DOO-shah-no), Farm Service Agency Administrator. “It helps close the gap between the enrollment and available acres, and it leaves room for the administration to be innovative with the other conservation tools, such as the Conservation Reserve Enhancement Program, at our disposal as we work to enlist non-traditional partners in our conservation efforts.” He also points out that grasslands sequester an incredible amount of carbon in their roots that are resilient even during drought and wildfires. It also provides good wildlife grazing habitat and grazing opportunities for producers and landowners. “There’s no better way to increase soil health than with thoughtful animal impact,” Ducheneaux adds. *********************************************************************************** USDA Releases WASDE/Crop Production Reports USDA released the Crop Production and World Agricultural Supply and Demand Estimate Reports. USDA is calling for higher corn and soybean production in the U.S. Corn production is forecast at 15 billion bushels, up 246 million bushels from last month on increases to harvested area and yield, which is 176.3 bushels per acre, up 1.7 bushels. Harvested area is 85.1 million acres, up 600,000. The U.S. corn outlook is for larger supplies, increased feed and residual use, greater exports, and higher ending stocks. The season-average corn price dropped 30 cents to $5.45 a bushel. Soybean production is predicted at 4.37 billion bushels, up 35 million with lower harvested area more than offset by a higher yield forecast of 50.6 bushels per acre. The area harvested for soybeans is predicted to be 86.4 million acres, lower than last month but five percent from last year. Soybean supply and use changes include higher beginning stocks, production, exports, ending stocks, and a lower soybean crush rate. The season-average price is down 80 cents to $12.90 per bushel. The U.S. wheat outlook is for reduced supplies, slightly higher domestic use, unchanged exports, and decreased ending stocks. The season-average farm price dropped ten cents to $6.60 a bushel for wheat. *********************************************************************************** USCA Applauds Administration Message on Consolidation and Competition Last week, the White House hosted a press conference featuring Ag Secretary Tom Vilsack and Brian Deese, the Director of the National Economic Council, to discuss the meatpacking sector. Both Vilsack and Deese talked specifically about the impacts of a highly concentrated meatpacking sector for American producers and consumers. A White House release outlined how the Big Four meatpackers are generating record profits during COVID-19 and doing so at the expense of consumers, farmers, and ranchers. U.S. Cattlemen’s Association President Brooke Miller says that the White House seeing the need for increased competition in the marketplace is a testament to the many agricultural producer and consumer voices who’ve been advocating for change. “COVID highlighted what we already knew to be true,” Miller says. “A lack of transparency and true price discovery hurts independent producers and processors and inflates beef prices at the retail counter.” The USCA says this is an important first step towards addressing the problem of concentration in the meatpacking sector. “We look forward to working with the USDA, including the new advisor for Fair and Competitive Markets, to investigate illegal and anti-competitive practices in the cattle marketplace,” Miller adds. *********************************************************************************** Senators Announce Bill Calling for New Country of Origin Labeling for Beef Last week, a bipartisan group of four Senators jointly announced the American Beef Labeling Act. The legislation would mandate the reinstatement of beef and beef products into the existing Mandatory Country of Origin Labeling Law (M-COOL), allowing for a 12-month development and implementation grace period. The Family Farm Action Alliance has long advocated for Country-of-Origin Labeling as an essential tool for transparency in the meat industry. Under current law, imported beef products can bear a “Product of the USA” label once finished and repackaged domestically. Farm Action Alliance says the leniency has benefited large multinational meatpacking companies at the expense of independent, U.S.-based farmers and ranchers. The bill would require to Office of the Trade Representative, in consultation with the Ag Secretary, to develop a World Trade Organization-compliant means of reinstating MCOOL for beef within one year of reinstatement. The legislation was introduced in the Senate by Republicans John Thune and Mike Rounds of South Dakota and Democrats Cory Booker of New Jersey and Jon Tester of Montana. *********************************************************************************** USDA Joins the Governmental SAF Challenge The USDA joined the government-wide Sustainable Aviation Fuels Grand Challenge to meet 100 percent of U.S. aviation fuel demand. The initiative was announced last week at a White House roundtable. “USDA and American agriculture will make sustainable aviation possible in concert with our federal and industry partners and their stakeholders,” says Ag Secretary Tom Vilsack. “We can expand our ability to power the nation’s aviation sector with fuel grown right here at home by hard-working Americans while creating economic opportunity for American farmers, business owners, and rural communities.” He also says that participating in SAF supply chains is a big win for the aviation business, consumers, and the planet. USDA will provide continued research, development, demonstration, and deployment of technologies necessary for identifying innovative solutions that will enable a government-wide commitment of producing 35 billion gallons of SAF per year by 2050. It also establishes a near-term goal of three billion gallons per year as a milestone for 2030. The agency will also work to ensure farmers, foresters, small businesses, and rural economies benefit from these opportunities with attention to cost, quality, and quantity of agricultural-based feedstock for producing SAF.
| Rural Advocate News | Monday September 13, 2021 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and pause at 8 a.m. CDT to see if USDA has an export sale announcement. USDA's weekly report of grain inspections is due out at 10 a.m. CDT with amounts still expected to be light, but improved, in the aftermath of Hurricane Ida. USDA's Crop Progress report at 3 p.m. will give the first summary of corn harvest progress and a second week of winter wheat planting progress. Weather Scattered showers are developing as a system moves along a stalled front across the northern tier of the country. Some of the showers could be severe as they move through, which would be hard to recover from should damage occur. Tropical Storm Nicholas will continue to move north with heavy rainfall along the Texas Coastline as well. The system is expected to make landfall later today or tonight but only move slightly inland.
| Rural Advocate News | Friday September 10, 2021 |
NAMI Responds to Economic Council Comments on High Meat Prices The North American Meat Institute issued a statement on what it calls “inflammatory statements” from Brain Deese, Director of the National Economic Council. During a press briefing, Deese said concentration in the meat sector raised concerns of “pandemic profiteering.” He and Ag Secretary Tom Vilsack released a report that says, “Four large conglomerates overwhelmingly control meat supply chains, driving down farmer earnings and driving up consumer prices.” Mark Dopp, COO of the North American Meat Institute, says, “As with almost every industry, meat and poultry packers and processors of all sizes have been, and continue to be, affected by the global pandemic and the inflationary trends that challenge the U.S. economy. American consumers of most goods and services are seeing higher costs, largely due to a persistent and widespread labor shortage. The meat and poultry industry is no different.” Dopp adds that issuing inflammatory statements that ignore the fundamentals of how supply and demand affect the markets accomplish nothing. “Meat and poultry markets are competitive and dynamic, with no one sector of the industry consistently dominating the market at the expense of another,” Dopp adds. *********************************************************************************** Rising Rail Freight Costs Squeezing Farmers and Ranchers Incomes The domestic rail transportation network is vital to moving products and goods supplied by America’s farmers and ranchers. Over 33 million carloads of U.S. goods moved up and down the 140,000-mile rail system, generating over $85 billion in total rail revenue in 2019. The Surface Transportation Board says farm products contributed nearly 7.4 percent, or $6.3 billion, of the total rail revenue. An American Farm Bureau Market Intel Report shows that over the last five years, the cost of shipping grain on railways has increased. Rail rates on corn, soybeans, and wheat, including fuel charges, have gone up 13, 11, and seven percent, respectively, since 2016. Rates on ethanol transportation have increased 18 percent during the same period. Increasing fuel prices in the broader economy are influencing rising rates but not as sharply as some might think. The Association of American Railroad’s three-year fuel price index shows a modest increase in rail fuel prices, but that’s primarily a recovery from COVID-19-related price drops linked to reduced consumption in early 2020. In the first half of 2021, the prices have all but returned to 2018 and 2019 levels. Ohio experienced the highest rate increase of 26 percent by origin, while North Carolina saw the highest increase (22 percent) based on shipping destinations. *********************************************************************************** Ag States Invest in California Ethanol Ag officials from Nebraska and two other states have decided to invest more money into the ethanol-based fuel market in California. The Journal Star says the Nebraska Corn Board and corn checkoff groups in Missouri and Kansas will provide California with $1.25 million over the next 12 months to help increase the availability of gasoline with an 85 percent ethanol blend, commercially known as E85. Pearson Fuels will supply the fuel. California’s largest E85 distributor, Pearson has almost 250 retail locations around the state. This is the Nebraska Corn Board’s second investment in E85 in California. Earlier this year, the Nebraska organization provided two grants to Pearson to help pay for E85 gas pumps at two gas stations in the Los Angeles area. “These stations are moving a tremendous volume of E85,” says John Greer of the Nebraska Corn Board. “One station alone will use about 50,000 bushels of corn in the form of ethanol. The investment is already proving worthwhile for our growers.” California is the largest E85 market in the country and should reach 50 million gallons this year. Despite that, it has fewer E85 stations than either Iowa or Minnesota, which combined have less than one-fourth of California’s population. *********************************************************************************** Groups Highlight Biofuels Benefits for California’s Carbon-Neutral Future A group of ag and biofuel organizations and companies submitted comments last week to the California Air Resources Board (CARB) highlighting the role renewable fuels can play in the state’s plans. They say fuels like ethanol can help California get to its goal of reaching carbon neutrality by 2045 or sooner. The board is in the process of updating its Scoping Plan that lays out the path toward achieving the state’s carbon reduction targets. The comments were signed by the leadership of groups like Growth Energy, the Renewable Fuels Association, the National Corn Growers Association, POET, and many others. After reminding the board that ethanol has already cut more than 26 million metric tons of carbon in California, the group recommended that the board expedite the approval of E15 as a legal fuel in California. This action alone could immediately increase the reduction of greenhouse gasses by 50 percent. The second recommendation was that the state considers requiring internal combustion engine light-duty vehicles sold in California be flex-fuel vehicles beginning in the model year 2024. Finally, they urged the board to extend the Low Carbon Fuel Standard Program beyond 2030. *********************************************************************************** Indigo Pays 267 Farmers for Progress in First-Ever Carbon Farming Program Indigo Ag announced it has dispersed initial payments to the inaugural group of “Carbon by Indigo” participants. The 267 paid growers are the first to implement on-farm practice changes and provide the data required to ensure the rigorous measurement and validation of resulting emissions reduction and removal according to registry protocols. The group has helped to pave a path for the scaled production of carbon credits as a new income stream for farmers. Carbon by Indigo is the first carbon farming program to provide outcomes-based direct payments to growers at scale. Indigo also announced plans to expand eligibility for farmers in 28 states. The company says 78 percent of U.S. cropland is now poised to respond to the mounting demand for high-quality credits, which has already resulted in a credit price increase of 35 percent in the first year of the program. Starting in the 2022 crop year, farmers in Wisconsin, Minnesota, Michigan, Alabama, Vermont, New York, Pennsylvania, and Virginia are also eligible to begin farming carbon with the support of Indigo’s farmer-first program. *********************************************************************************** NPPC Asking Congress to Address Labor Shortage Through Reconciliation The National Pork Producers Council called on Congress to include language to expand the existing H-2A visa to year-round ag laborers in a budget reconciliation bill, set to get voted on Monday in the House. Like many sectors of the economy, the U.S. pork industry is faced with a severe labor shortage. But even before COVID-19, the industry was having trouble filling jobs, a situation generally attributable to urbanization and an aging rural population. The tight labor market prompted the pork sector to rely on foreign-born workers. “The U.S. pork industry is highly dependent on foreign-born workers, but current visa programs don’t provide access to enough workers to meet the labor needs on our farms and in packing plants,” says NPPC President Jen Sorenson. “We need a dedicated year-round workforce.” The group wants lawmakers to open the current H-2A temporary and seasonal worker visa program to year-round labor, without a limit on the annual number of visas, and to provide legal status for agricultural workers already in the country. Legislation approved earlier this year in the House would expand the program to year-round workers but cap the number of visas that can get issued each year.
| Rural Advocate News | Friday September 10, 2021 |
Friday Watch List Markets USDA's weekly export sales report is set for 7:30 a.m. CDT Friday, the same time the Labor Department posts the U.S. producer price index for August. USDA's Crop Production and WASDE reports are due out at 11 a.m. CDT Friday with a DTN webinar to follow at noon. Traders will continue to keep their eyes on the latest weather forecasts and any news of export sales. Weather Mild to hot and dry conditions on Friday will promote drydown and early harvest of crops across most of the country. Some showers will be possible in the Pacific Northwest, which would be favorable for winter wheat planting and establishment where they occur.
| Rural Advocate News | Thursday September 9, 2021 |
Tax Proposals Risk Future of American Farms The American Farm Bureau Federation, 46 state Farm Bureaus, and 280 organizations representing family-owned agribusinesses sent a letter to Congressional leaders about tax policies. The letter asks them to leave important tax policies in place as they draft legislation implementing President Biden’s “Build Back Better” agenda. The letter addresses four key tax provisions that make it possible for farmers and ranchers to survive and pass their businesses on to the next generation: estate taxes, stepped-up basis, the 199A small business deduction, and like-kind exchanges. “The policies Congress enacts now will determine agricultural producers’ ability to secure affordable land to start or expand their operations,” the letter says. “Regardless of whether a business has already been passed down through multiple generations or is just beginning, the key to their longevity is a continued ability to transition when a family member or business partner dies.” For this reason, the groups firmly believe the current federal estate tax code provisions must be maintained. These tools are as crucial as ever because the number of farmers and ranchers 65 and over outnumbers those under 35 by four to one. Over 370 million acres of land will change hands in the next two decades. *********************************************************************************** Biofuel Leaders Oppose EPA Motion Regarding 2018 SREs A coalition of biofuel and agricultural groups announced opposition to the Environmental Protection Agency’s motion to remand but not vacate Small Refinery Exemptions granted by the Trump administration. The coalition includes groups like the Renewable Fuels Association, Growth Energy, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and the National Farmers Union. The EPA motioned to remand but not vacate the 31 exemptions that the coalition is currently challenging in D.C. Circuit Court. In statements to the court, the groups say that EPA’s issuance of the exemptions was arbitrary and capricious and exceeded the Agency’s authority under the Clean Air Act. “While we’re encouraged that the EPA intends to reconsider the 31 SREs granted for the 2018 compliance year, we oppose the EPA’s motion to remand without a deadline and without addressing the SREs’ ongoing damage to the biofuel industry,” the groups say in a statement. “In addition to seeking a remand, the Biden EPA should ask they get vacated, or at the very least, the EPA should ask the court to set a deadline by which the reconsideration of these petitions must be completed.” *********************************************************************************** USDA Hosting ASF Action Week September 13-17 The USDA’s Animal and Plant Health Inspection Service will host African Swine Fever Action Week September 13-17. The goal is to encourage swine producers to take part in multiple webinars to learn about ASF and what they can do to help protect the American swine herd. Ag Secretary Tom Vilsack emphasized the importance of keeping the devastating disease out of the U.S. “This disease does not affect people and can’t be transmitted from pigs to humans, and it’s not a food safety issue,” the Secretary says. “However, ASF is incredibly destructive, and we need you to be informed.” Every day during the week, APHIS will host a webinar beginning at 2:00 pm Eastern Time every day and covers different topics. They include where ASF exists and what’s at stake, the steps that APHIS is taking to prevent and prepare for ASF, the benefits of biosecurity, what to expect in an ASF outbreak, and the feral swine factor in ASF. The webinars will also be recorded for viewing later. “The disease was recently confirmed less than a thousand miles away in the Dominican Republic,” Vilsack says. “ASF has never been detected in the United States, and we are committed to keeping it out and protecting our vital swine industry.” *********************************************************************************** USDA Expands Assistance to Help with Feed Transportation Costs In response to the severe drought conditions in the Western U.S. and Great Plains, USDA says it plans to help cover the cost of transporting feed for livestock that rely on grazing. USDA will update the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program (ELAP) to immediately cover feed transportation costs for drought-impacted ranchers. The Farm Service Agency will provide more details and tools to help ranchers get ready to apply at their local USDA Service Center later this month at www.fsa.usda.gov/elap. “USDA is currently determining how our disaster assistance programs can best help alleviate the significant economic, physical, and emotional strain agriculture producers are experiencing due to drought conditions,” says Ag Secretary Tom Vilsack. ELAP already covers the cost of hauling water during drought, and this change will expand the program beginning in 2021 to cover feed transportation costs where grazing and hay resources have been depleted. Cost-share assistance will also be made available to cover eligible costs of treating hay and feed to prevent the spread of invasive pests. “Today’s announcement is intended to provide relief as ranchers make fall and winter herd management decisions,” Vilsack adds. *********************************************************************************** Axne Secures One Billion in Biofuel Infrastructure Funding Iowa Representative Cindy Axne (AX-knee) announced she secured one billion dollars in funding for biofuels infrastructure spending in the House’s first draft of the Build Back Better Act. The goal of the funding is to support the expanded availability and use of renewable fuels. She says it’s a great thing for rural communities, the ag economy, the planet, and for hundreds of thousands of Americans whose jobs will be supported by the investment. “Make no mistake, this was no easy fight,” Axne says. “For months, I’ve been helping teach others in D.C. about some of the key advantages of biofuels, including the fact that it’s been proven to be twice as clean as fossil fuels.” The Iowa representative says while she won’t announce her final decision on whether she’ll support the package until she sees the full bill, seeing the investments included in the legislation will be a critical part of her choice. House committees are beginning to consider their sections of the Build Back Better Act, which tackles a range of issues like infrastructure, health care, education, and climate. Included in the initial draft is $1 billion in funding for the USDA to provide grants over the next eight years to expand biofuel infrastructure. *********************************************************************************** July Beef Exports Set Record While Pork Value Remains Strong U.S. beef exports set another value record in July. Data released by USDA and compiled by the U.S. Meat Export Federation shows export value climbed 45 percent from a year ago to just over $939 million, while volume was the third largest of the post-BSE era at 122,743 metric tons, up 14 percent year-over-year. July beef exports to the mainstay Asian markets of Japan, South Korea, and Taiwan were relatively steady with last year, but at a significantly higher value. Exports volume growth was driven by record-large shipments to China and a strong rebound in markets located in the Western Hemisphere. From January through July, U.S. beef exports rose 18 percent from last year to over 822,800 metric tons, with the value 30 percent higher at $5.58 billion. Pork exports were steady with last year at 221,800 metric tons, but the export value jumped 20 percent to $657 million. July pork exports were mainly driven by growth in Mexico, Central America, Colombia, and the Philippines, while chilled exports were stronger in Japan and South Korea. For January through July, exports were one percent above last year’s record pace at just under 1.8 million tons, while value jumped by eight percent to $4.98 billion.
| Rural Advocate News | Thursday September 9, 2021 |
Thursday Watch List Markets Thursday morning's reports start with U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CDT, followed by the Energy Department's weekly natural gas storage at 9:30 a.m. CDT. The Energy Department releases other energy inventories at 10 a.m. CDT, including a report on ethanol production. USDA's weekly Export Sales report will be released Friday morning, due to this week's holiday schedule. Weather Brief Tropical Storm Mindy has become a depression as it moved into Florida and Georgia Wednesday night. The storm will exit off the coast Thursday afternoon. The system has been producing moderate to heavy rainfall, which could be damaging to open-boll cotton in the region. Across the interior of the country, it will be dry and mild with good conditions for drydown and early harvest.
| Rural Advocate News | Wednesday September 8, 2021 |
USDA Announces Pandemic Relief for Farmworkers The Department of Agriculture announced $700 million in competitive grant funding to help farmworkers and meatpacking workers with pandemic-related health and safety costs. Agriculture Secretary Tom Vilsack announced the new Farm and Food Workers Relief grant program funding Tuesday. Additionally, $20 million of the funding was set aside for at least one pilot program to support grocery workers. The program will provide relief to farmworkers, meatpacking workers, and front-line grocery workers for expenses incurred due to the COVID-19 pandemic. The relief is intended to defray costs for reasonable and necessary personal, family, or living expenses related to the COVID-19 pandemic. Funds will be awarded through grants to state agencies, tribal entities, and non-profit organizations serving farmworkers and meatpacking workers ranging from $5,000,000 to $50,000,000. Applications must be submitted electronically through www.grants.gov. USDA will soon announce a separate $700 million suite of pandemic safety and response grants for producers, processors, farmers markets, distributors, and seafood processors and vessels impacted by COVID-19. *********************************************************************************** Latest Ag Economy Barometer Released The Monthly Ag Economy Barometer rose four points in August to 138. Announced Tuesday, the modest rise was primarily attributable to an improvement in the Current Conditions Index, which climbed 9 points to 152. The Index of Future Expectations rose just two points to 132. Although the barometer and its two key sub-indices improved in August compared to July, all three indices remain well below readings posted this past spring. The barometer follows last week’s USDA report that farm net income and expenses are rising, and producers are becoming increasingly concerned about rising input costs. On the August survey, 39 percent of respondents said they expect input prices to rise by eight percent or more, up from 30 percent who felt that way in both June and July. One in five producers expect farm input price inflation to exceed 12 percent. Additionally, a majority of corn and soybean producers expect a significant rise in farmland cash rental rates for 2022. *********************************************************************************** Barchart Raises U.S. Crop Production Forecasts and Cuts Canadian Estimates Software and technology provider Barchart released its monthly Yield and Production forecasts Tuesday for U.S. and Canadian field crops. The September report indicates an increase in U.S. crop production for corn, soybeans, and hard red winter wheat, while Canadian production forecasts show a decrease for spring wheat and soybeans. Barchart expects U.S. corn production at 15.4 billion bushels with an average yield of 183.6 bushels per acre, higher than the latest USDA figures of 14.8 billion bushels with an average yield of 174.6. Barchart pegs production at 4.5 billion bushels for soybeans with an average yield of 51.3 bushels per acre, compared to USDA's 4.3-billion-bushel crop and 50 bushels per acre average yield. And for wheat, Barchart forecasts U.S. hard red winter wheat average yield at 45.5 bushels per acre compared to USDA’s average yield of 44.5. For Canadian crops, Barchart expects spring wheat production at 773.1 million bushels and soybean production at 222.9 million bushels. *********************************************************************************** Kansas City Southern Engaging with Canadian Pacific Kansas City Southern Railway says the bid from Canadian Pacific may be the superior proposal compared to an offer by Canadian National, which didn’t gain Surface Transportation Board preliminary approval. Legal and financial advisers conclude the deal could reasonably be expected to lead a “Company Superior Proposal” as defined in KCS’s merger agreement with Canadian National. KCS remains bound by the terms of the Canadian National merger agreement, in which CN agreed to acquire KCS in a stock and cash transaction valued at $325 per KCS share. The renewed offer from Canadian Pacific Railway is a cash and stock transaction valued at $300 per KCS share. Canadian Pacific maintains that a CP-KCS merger is the only viable option for KCS following the Surface Transportation Board ruling. Kansas City Southern announced last week it would engage in discussions with Canadian Pacific Railway. Kansas City Southern also scheduled a September 24 stockholders meeting to vote on the Canadian National proposal. *********************************************************************************** AFBF Urges USDA to Address Supply Chain Issues The American Farm Bureau Federation urges the Department of Agriculture to address supply chain issues facing farmers and ranchers. In a letter to Agriculture Secretary Tom Vilsack last week, the organization details priorities for USDA to consider in response to President Joe Biden’s Executive Order on America’s Supply Chains. AFBF President Zippy Duvall states, “our nation has witnessed vulnerabilities throughout the supply chain that haven’t been seen before,” due to the ongoing COVID-19 pandemic. Among the recommendations, AFBF asks USDA to consider action on livestock markets and processing capacity, farm inputs, transportation, labor and trade. The letter states supplies of farm inputs like crop protectants, fertilizers, and seeds have been difficult to obtain, and expensive to purchase. Highway transportation of farm products and supplies is more expensive and less available today than pre-pandemic levels. And agricultural labor, both domestic and foreign, is increasingly difficult to access and expensive, making already small margins even tighter. *********************************************************************************** NCBA Contests Seeks Singer to Perform National Anthem The National Cattlemen’s Beef Association is accepting entries for the NCBA National Anthem Contest through October 15. The contest winner will perform the national anthem at the NCBA 2022 convention’s Opening General Session February 1, as well as the Thursday night NCBA event on February 3. The winner will also receive round trip airfare to Houston, a hotel room for three nights, free NCBA convention registration, plus a pair of boots, jeans and a shirt from Roper or Stetson. Any member of NCBA, the American National CattleWomen, the Cattlemen’s Beef Board, or family member, are eligible to participate in the contest. Previous NCBA National Anthem Contest winners are not eligible. The top four finalists will be chosen by October 25, 2021, and videos will be posted to the convention website at convention.ncba.org. Voting will be open to the public from November to November 19, 2021, and the winner will be announced November 22, 2021.
| Rural Advocate News | Wednesday September 8, 2021 |
Wednesday Watch List Markets Due to the Labor Day schedule, the only official report on Wednesday's docket is the Beige Book from the Federal Reserve, due out at 1 p.m. CDT. Traders will still pay attention to the latest weather forecasts and any news of export sales that surfaces. Weather Scattered showers are expected across the Southeast on Wednesday as an upper-level disturbance moves into the region tonight. Some flooding will be possible, which could damage open-boll cotton. Additional showers may pop up around the Great Lakes, but with no severe potential Wednesday.
| Rural Advocate News | Tuesday September 7, 2021 |
Keep “Navigable” in the New WOTUS Rule The American Farm Bureau submitted recommendations on the definition of “waters of the United States,” or WOTUS. The organization filed its recommendations with the Environmental Protection Agency and the Army Corps of Engineers. The EPA announced in June that it intended to revise the definition of WOTUS and solicited pre-proposal recommendations. In its recommendations, Farm Bureau expressed disappointment in the EPA’s decision to replace the Navigable Waters Protection Rule and explains why the rule should be left in place. “To correct the fatal flaws in the 2015 WOTUS Rule, the Agencies carefully struck ‘a reasonable and appropriate balance between Federal and State waters’ that is ‘intended to ensure that the agencies operate within the scope of the federal government’s authority over navigable waters.’ AFB says the agencies can ensure clean water for all Americans through a blend of the Clean Water Act’s regulatory and non-regulatory approaches, just as Congress intended. Farm Bureau wants new regulations to meet several recommendations, including adhering to Supreme Court precedents, define WOTUS in clear terms that are easy to apply in the field, limits jurisdiction over non-navigable tributaries, and several others. “Any attempt to regulate typically dry low spots on farmland and pastures as ‘jurisdictional‘ waters would constitute overly burdensome regulations,” Farm Bureau also says in its recommendations. *********************************************************************************** Growth Energy Applauds Dems on Biofuels in Budget Process Growth Energy CEO Emily Skor applauded Minnesota Senator Amy Klobuchar’s efforts to include support for homegrown biofuels in Congress’ upcoming budget reconciliation process. Klobuchar was joined by several colleagues in sending a letter to Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi, asking for Congressional leadership to include key biofuel initiatives in reconciliation. Those initiatives include the Biofuel Infrastructure and Agricultural Market Expansion Act, the Consumer and Fuel Retailer Choice Act, the Clean Fuels Vehicle Act, the Biodiesel Tax Credit Extension Act, and the extension of the Second-Generation Biofuel Producer Tax Credit. In the letter, the members say, “Providing additional market access for higher blends of low carbon fuels in the budget reconciliation process will create jobs in rural communities, lower the price of fuel at the pump, reduce our dependence on fossil fuels, and will decrease carbon emissions.” Skor appreciates the members who are fighting for the biofuel industry. “We’re currently working on several biofuel issues before Congress,” she says. “That includes a legislative effort to allow retailers to sell E-15 year-round.” She also says the initiatives would return certainty to the biofuels market as it faces regulatory uncertainty from this administration. *********************************************************************************** USDA Offers New Insurance Option for Split-Apply Nitrogen Corn farmers who “split-apply” nitrogen will soon have another option for crop insurance coverage. Starting in the 2022 crop year, the USDA’s Risk Management Agency will offer the Post Application Coverage Endorsement (PACE) in certain states for non-irrigated corn, providing coverage for producers who use this practice that’s considered better for natural resources and saves money for producers. To “split-apply” nitrogen, growers make multiple fertilizer applications during the growing season rather than providing all of the crop’s nitrogen requirements with a single treatment before or during planting. “USDA is committed to building insurance options that encourage the use of practices that are better for the environment and producers’ bottom lines,” says RMA Acting Administrator Richard Flournoy. “We can offer the PACE thanks to the cooperation of four partners, including the Illinois Corn Growers Association and the National Corn Growers Association.” Split application of nitrogen can lead to lower input costs as well as help prevent runoff or leaching of nutrients into waterways and groundwater. This is because it’s used in more targeted amounts over multiple applications, rather than one large application. *********************************************************************************** “Farm Safety Yields Real Results” Agriculture is one of the most dangerous industries in the country and abroad. The National Institute of Occupational Safety and Health says approximately two million full-time workers were employed in production ag in the U.S. as recently as 2018. About 100 agricultural workers suffer a lost-work-time injury every day. National Farm Safety and Health Week has been recognized during the third week of September for the last 77 years to help bring attention to the risks of working in agriculture. This year, AgriSafe and its partners at the National Education Center for Agricultural Safety picked this year’s theme as “Farm Safety Yields Real Results” for the week of September 20-25. AgriSafe will offer free webinars on tractor and roadway safety, keeping young people safe, anhydrous ammonia safety, respiratory protection, mental health, and women’s health issues. Continuing Education credits for healthcare and allied health professionals will be available with two sessions addressing mental health topics. AgriSafe is an organization made up of health and safety professionals who strive to reduce health disparities found in the agricultural community. *********************************************************************************** Tyson Foods, Unions Reach Deal on COVID-10 Vaccine Mandate Tyson Foods says that labor unions agreed to support its requirement for U.S. employees to be vaccinated against COVID-19 by November. Reuters says the company will offer new benefits to workers including paid sick leave. Companies like Tyson have been trying to give employees incentives to get vaccinated through bonuses and other benefits as the Delta Strain pushes case numbers higher. Tyson Inc., which sells the most meat in the country, said in early August that American workers must get vaccinated, though the requirement for unionized plant workers was subject to negotiations. The United Food and Commercial Workers International Union and the Retail, Wholesale, and Department Store Union, who together represent more than 80 percent of Tyson’s 31,000 unionized workers, say they now support the company’s effort. The UFCW, America’s largest meatpacking union, says it secured 20 hours of paid sick leave per year for Tyson employees as part of the negotiations on the mandate. The company says more than 90,000 employees, about 75 percent of its U.S. workforce of 120,000, have received at least one dose of a vaccine, up from about 56,000 before the mandate. The union says some workers can be exempt from the mandate for religious or medical reasons. *********************************************************************************** Weekly Export Sales Numbers Higher Export sales of soybeans, corn, and wheat for delivery in the 2021-2022 marketing year were all higher week-to-week. The USDA says soybean sales in the seven days that ended on August 26 totaled 2.13 million metric tons, up from 1.75 million a week earlier. China was the top soybean buyer at 1.26 million metric tons, while unnamed countries purchased another 654,000 tons. Mexico, Egypt, and Taiwan rounded out the top five soybean buyers. Exports totaled 324,000 metric tons, up 25 percent over the prior week. Corn sales to overseas buyers for delivery surged to 1.16 million metric tons, up from 684,000 tons the previous week. Mexico was the top corn buyer at 464,5000 metric tons, followed by Colombia, Canada, Japan, and Taiwan. Exports for the week dropped 30 percent to 529,300 metric tons. Wheat sales jumped to 295,300 metric tons, up noticeably from the 116,000 tons sold the week before. Mexico was the top buyer at 103,900 metric tons, followed by Japan, Nigeria, China, and the Philippines. An unnamed country canceled shipments totaling 100,000 metric tons.
| Rural Advocate News | Tuesday September 7, 2021 |
Tuesday Watch List Markets There are no major economic reports on Tuesday. DTN will be watching for the sign of any new China demand on USDA sales. We will also be watching for any news on the Gulf export facilities return to normal following Hurricane Ida's devastating impact on Gulf export facilities and power lines. Weather A system moving through the Great Lakes will bring scattered showers to the Midwest on Tuesday. A few of those could be severe from Illinois into Michigan. Some winter wheat areas in Kansas and Texas will also see some shower potential as well, which may be marginally beneficial before a drier pattern settles into the Plains. Unfavorably hot and dry conditions continue in the Pacific Northwest for winter wheat planting and establishment.
| Rural Advocate News | Friday September 3, 2021 |
Farm Sector Profits Forecast to Increase in 2021 A Department of Agriculture report forecasts increased farm income for 2021. Net farm income is forecast to increase by $18.5 billion, or 19.5 percent. At $113.0 billion, net farm income would be at its highest level since 2013 and 20 percent above its 20-year average of $93.9 billion. In inflation-adjusted 2021 dollars, USDA expects net farm income to rise $15.0 billion in 2021 from the previous year. USDA expects net cash farm income to increase by $23.8 billion, or 21.5 percent, to $134.7 billion in 2021. Net cash farm income encompasses cash receipts from farming as well as farm-related income, including government payments, minus cash expenses. Lower direct Government payments and higher production expenses in 2021 are expected to only partially offset higher cash receipts. The expected decrease is largely because of lower supplemental and ad hoc disaster assistance for COVID-19 relief in 2021 compared to 2020. USDA predicts production expenses to increase 7.3 percent to $383.5 billion in 2021. *********************************************************************************** Food Help on the Way for Louisiana Households from USDA Families in Louisiana affected by Hurricane Ida will soon be able to receive food packages containing USDA Foods. The Department of Agriculture approved the short-term measure to address an immediate need for food until a longer-term solution is ready. Earlier this week, USDA also approved a waiver to allow participants in the Supplemental Nutrition Assistance Program to purchase hot foods with their benefits through September 28. The Disaster Household Distribution program was approved to start on September 1, 2021. The program helps states and tribal nations after a disaster disrupts normal food supply channels. Louisiana officials will work directly with their partners and local food banks to issue up to 800,000 food boxes to individuals in the state. And food banks will use their current network of food pantries to distribute foods in areas affected by Hurricane Ida. Each package will contain approximately 25 pounds of USDA Foods, including shelf-stable items like canned goods, fruit, protein items and other staples. *********************************************************************************** USDA Seeking Comments on Labeling Meat Derived from Animal Cells The Department of Agriculture is seeking comments regarding the labeling of meat and poultry products made using cultured cells derived from animals. USDA's Food Safety and Inspection Service published an advance notice of proposed rulemaking Thursday to solicit comments. FSIS will use the comments to create future regulatory requirements for labeling the food products. In March of 2019, USDA and FDA announced a formal agreement to jointly oversee the production of human food products made using animal cell culture technology and derived from the cells of livestock and poultry. The agreement seeks to ensure that such products brought to market are safe and truthfully labeled. Under the agreement, FDA will oversee cell collection, growth, and differentiation of cells. FDA will transfer oversight at the cell harvest stage to FSIS. FSIS will then oversee the cell harvest, processing, packaging, and labeling of products. There is a 60-day period for comment on the issue. Learn more and comment at fsis.usda.gov. *********************************************************************************** House Ag Democrats Express Concern Regarding Biotech Trade Barriers House Agriculture Committee Democrats are expressing concerns over non-tariff trade barriers imposed on agricultural biotechnology products. Led by Chairman David Scott of Georgia, the lawmakers sent a letter to Agriculture Secretary Tom Vilsack and Trade Representative Katherine Tai. The letter addresses China's import approval process delays for U.S. agriculture biotech products. Under the U.S.-China Phase One agreement, China committed to predictable and consistent average timelines for regulating biotechnology products for import and agreed not to request information unnecessary for assessing the safety of a product for its intended use. However, the letter states, "nearly a year and a half into the two-year agreement, timelines for product approvals for import still average more than seven years." Meanwhile, Mexico committed to enhanced biotechnology measures and sanitary and phytosanitary standards in the U.S.-Mexico-Canada Agreement. But the lawmakers say Mexico has demonstrated a reversal in its treatment of U.S. biotechnology products. Mexico's regulatory authority has not issued a biotechnology approval in over three years. *********************************************************************************** Shackleford Names Assistant USTR for Southeast Asia and the Pacific U.S. Trade Representative Katherine Tai this week announced Dawn Shackleford as the Assistant United States Trade Representative for the Office of Southeast Asia and the Pacific. Shackleford most recently served as Assistant United States Trade Representative for WTO and Multilateral Affairs. USTR Tai states, “Her diplomatic experience and judgement will be invaluable as we engage our trading partners and resume our work to enhance U.S. economic cooperation in Southeast Asia and across the Pacific.” The Office of Southeast Asia and Pacific Affairs is responsible for USTR’s trade and investment relations with the countries of Southeast Asia, as well as Australia, New Zealand, and the Pacific Islands. Before her work at USTR, Shackleford served as a policy analyst within the Office of the Under Secretary of Defense for Policy and in the Department of the Navy from 1998 to 2004 and as an adjunct professor at American University's School of International Service from 2003 to 2005. *********************************************************************************** U.S. Red Meat Exporters and Latin American Buyers Reunite at USMEF Event More than 130 red meat buyers from 21 countries across Central and South America and the Caribbean recently gathered at the U.S. Meat Export Federation Latin American Product Showcase. Attendees included 55 U.S. exporting companies. The event was held annually from 2011-2019 before the COVID pandemic forced a postponement in 2020. The showcase, held August 25-26, is well-established as a go-to event for buyers and sellers alike, but this year's participants were especially anxious to renew business relationships and pursue new opportunities in face-to-face meetings, according to USMEF. Pork and beef producers who provide financial support for the showcase also participated, with this year's event receiving funding from the USDA Market Access Program, the Beef Checkoff Program, the National Pork Board, the United Soybean Board, the Nebraska Beef Council and the Texas Beef Council. A USMEF representative states, “Despite all the travel challenges and other COVID-related restrictions, we were able to move forward with the showcase and the participants are very thankful to be back together after a long absence.”
| Rural Advocate News | Friday September 3, 2021 |
Friday Watch List Markets Early on Friday we will be watching for the non-farm payroll report and the unemployment rate along with purchasing manager's index (PMI) for signs of how the U.S. economy is faring. We will also be watching for new China purchases and any developments at Gulf shipping terminals. Weather A frontal boundary is moving through the Western Corn Belt Friday morning with some moderate rainfall from western Wisconsin and southeast Minnesota into eastern Kansas. The front will be slow to move south across the Southern Plains. This should provide beneficial rainfall for some areas of the Southern Plains winter wheat areas that have been dry over the last several weeks but could cause some flooding in Kansas.
| Rural Advocate News | Thursday September 2, 2021 |
Agricultural Leaders Urge Farmers and Rural Communities to Get Vaccinated More than 30 state and national agricultural organizations recently joined to promote vaccination among farmers and rural Americans. In an open letter to association members, the organizations added another voice to the call to get vaccinated. In addition, the groups utilized an opinion editorial published in the Des Moines Register to share a message about the connection between agriculture, science, and health. CropLife America President and CEO Chris Novak states, “Whether you live in the city or on the farm, we are all at risk if we don’t take steps to keep ourselves and our communities safe.” The effort is in response to the continued challenge of the COVID-19 delta variant cases increasing among unvaccinated populations. Agriculture leaders are asking farmers to protect their health and their communities by getting vaccinated, saying, "Farmers make science-based decisions every day to protect their farms and their communities - they should make these same decisions to protect their health as well." *********************************************************************************** Canadian Pacific Renews Kansas City Southern Offer The bidding war for Kansas City Southern continues as Canadian Pacific renewed its bid the acquire the railway company. The move followed the Surface Transportation Board’s rejection of the Canadian National bid, which STB determined, “the proposed voting trust is not consistent with the public interest standard under the board’s merger regulations.” Keith Creel, Canadian Pacific President and CEO, states, "we have notified the KCS Board of Directors that our August 10 offer still stands to bring this once-in-a lifetime partnership together." Canadian National issued a statement following the STB decision, expressing disappointment in the STB decision. Canadian National and KCS are evaluating what options are available. Meanwhile, the KCS Board of Directors will evaluate Canadian Pacific’s proposal under the terms of a merger agreement with Canadian National. Canadian Pacific has filed a proxy statement asking stockholders to vote against the proposed CN-KCS combination at the KCS stockholders meeting on September 3. *********************************************************************************** NASS to Review Acreage Earlier for Certain Crops The Department of Agriculture’s National Agricultural Statistics Service announced Wednesday it will review planted and harvested acreage for select crops earlier than normal. The crops under review include corn, cotton, peanuts, rice, sorghum, soybeans, and sugarbeets. USDA NASS will review all available data, including survey data, satellite-based data, and the latest information from USDA’s Farm Service Agency and Risk Management Agency. USDA says it is normal practice for NASS to review the data in September for cotton, peanuts, and rice. However, the review typically takes place in October for corn, sorghum, soybeans, and sugarbeets. USDA officials say the data is sufficiently complete this year to consider adjustments in September on those crops. If the data review justifies any changes, NASS will publish updated planted and harvested acreage estimates in the September 10 report. In October, NASS will again review acreage for corn, sorghum, soybeans, and sugarbeets, as well as for canola, dry edible beans, and sunflowers. *********************************************************************************** RMA Updates Whole-Farm Revenue Protection Organic and aquaculture producers can soon benefit from updates to the Department of Agriculture’s Whole-Farm Revenue Protection plan. USDA’s Risk Management Agency announced Wednesday it is revising the plan of insurance to make it more flexible and accessible to producers beginning in crop year 2022. RMA Acting Administrator Richard Flournoy says the changes to the program “will make it a better risk management tool for producers." Changes to the program include increasing expansion limits for organic producers to the higher of $500,000 or 35 percent, increasing the limit of insurance for aquaculture producers to $8.5 million, and allowing a producer to report acreage as certified organic, or as acreage in transition to organic, when the producer has requested an organic certification by the acreage reporting date. Meanwhile, RMA revised dates for the Pasture, Rangeland and Forage and Apiculture Insurance programs earlier in the week. Farmers now will have until December 1 to make coverage decisions and complete reporting activities. *********************************************************************************** Louisiana Farm Bureau Opens Hay Clearing House, Effects of Hurricane Ida The Louisiana Farm Bureau Livestock Advisory Committee is working to help ranchers through a natural disaster by re-engaging its hay clearinghouse in the aftermath of Hurricane Ida. Through the effort, volunteers and Louisiana Farm Bureau staff connect ranchers who need hay or pasture for their cattle with pasture space and folks who have hay to donate, or transportation services. Find the resource online at lafarmbureau.org/hayclearinghouse. Hurricane Ida caused significant damage to Louisiana farms, along with damages to the major export corridor of the Mississippi River. USDA’s Weekly Weather Bulletin notes that Ida moved through the eastern side of southern Louisiana’s sugarcane production area, shortly before harvest was due to begin. In addition, Ida battered some row crops, including maturing rice and open-boll cotton. Meanwhile, market experts attribute price declines this week to market concerns over damages to export facilities in the area. The storm was strong enough to briefly reverse the flow of the Mississippi River. *********************************************************************************** Farm Journal Announces Town Hall with Secretary of Agriculture Farm Journal will host a town hall meeting with Agriculture Secretary Tom Vilsack Thursday (this) afternoon. The free webinar titled "American Ag Policy: A Conversation with the Secretary of Agriculture is set for 2 p.m. CT. The virtual event will focus on topics important to farmers and all the agriculture industry, including policy priorities, COVID assistance, trade, climate, market transparency and goals for the upcoming year. AgDay TV host and Farm Journal magazine editor Clinton Griffiths will host the event. Griffiths says, “This is an opportunity to hear from Secretary Vilsack himself on the future of the industry, the challenges ahead and the policies he expects to shape our conversations over the next several years.” Audience participants will be able to submit questions during the event. Register online at www.farmjournal.com/farm-country-updates/. All registered attendees will receive on-demand access to the session when available.
| Rural Advocate News | Thursday September 2, 2021 |
Thursday Watch List Markets Early Thursday there are a host of economic reports coming out, with initial jobless claims, trade balance and factory orders all giving us some indication of how the economy is doing. Along with that, DTN will be watching for developments at the Gulf export facilities with respect to power outages and structural damage. Of course, we will be watching to see if China shows up in 8 a.m. sales announcements to confirm rumors of soybean buying. Weather A front slowly moving through the Plains will bring areas of moderate to locally heavy rainfall into Minnesota and Iowa tonight. Rainfall will help to ease drought but will not be very useful for corn or soybeans at this point in the season.
| Rural Advocate News | Wednesday September 1, 2021 |
Hours-of-service Exemption for Livestock Haulers Extended The Federal Motor Carrier Safety Administration Tuesday extended the exemption from hours-of-service requirements for livestock haulers. Advocated by the National Cattlemen’s Beef Association, the organization says livestock haulers continue to need the flexibility for the well-being of livestock during hauls, and to keep grocery stores stocked with beef during the continued disruption of COVID-19. NCBA says livestock haulers have been operating under an hours-of-service exemption since the beginning of the COVID-19 pandemic while maintaining a strong safety record. NCBA Executive Director of Government Affairs Allison Rivera states, "I believe FMCSA's continuation of this exemption indicates their confidence in our producers to keep doing their work safely and effectively." Current hours-of-service rules allow for 11 hours of drive time, 14 hours of on-duty time, and then require ten consecutive hours of rest. However, livestock haulers need flexibility to protect the welfare of animals. The most recent extension will continue through midnight on November 30, 2021. *********************************************************************************** Arizona Judge Vacates Navigable Waters Protection Rule The District of Arizona court ruled this week to vacate the Navigable Waters Protection Rule. However, what the decision means for the rule is one of many questions yet to be answered. Three courts have refused to dismantle the NWPR, including last month when a federal court in South Carolina refused a similar request from plaintiff groups. American Farm Bureau Federation President Zippy Duvall states, “This ruling casts uncertainty over farmers and ranchers across the country and threatens the progress they’ve made to responsibly manage water and natural resources.” Duvall says AFBF is reviewing the ruling to determine the next course of action. Earthjustice sued the EPA and Army Corps of Engineers in the Arizona case. An Earthjustice attorney states the ruling allows “the Clean Water Act to continue to protect all of our waters while the Biden administration develops a replacement rule.” The ruling comes just days ahead of the deadline for comments regarding the Environmental Protection Agency’s effort to rewrite WOTUS. *********************************************************************************** WTO Panel to Review China’s Compliance on Farm Product Imports The World Trade Organization this week established a dispute panel requested by China. The panel will determine whether China complied with an earlier WTO ruling regarding the administration of its tariff rate quotas. China submitted its second request for a dispute panel to determine whether it has complied with a 2019 ruling concerning its TRQs for certain agricultural products, including wheat, rice, and corn. The United States does not agree that China has complied with the WTO ruling, and notes that there is a lack of transparency and fairness in China's administration of TRQ measures. China claims that it has fully implemented the rulings and recommendations in the dispute. The U.S. said it is willing to work with China to reach a resolution. Australia, Brazil, Canada, the European Union, Guatemala, India, Japan, the Russian Federation, Chinese Taipei, and the United Kingdom reserved their rights to participate as third parties in the proceedings. *********************************************************************************** Argentina Extending Beef Export Limits Argentina Tuesday extended beef export restrictions through the end of October. Reuters reports the Argentine government seeks to bolster domestic supply to help contain rising local food prices. Restricting exports by the Argentine government is often politically fueled, and this time comes a few months ahead of mid-term elections. A similar move occurred in June when the government limited exports on specific beef cuts and capped beef shipments by half of last year’s level through August. The government says the restriction “is essential to guarantee Argentine access to beef in the face of the sharp increase in prices for consumers,” A meat industry representative in Argentina told Reuters the sector had lost around $100 million in exports last month alone due to the restrictions. Argentina is one of the world’s largest beef exporters and a key supplier to China. Global beef prices are surging as China imports more beef, and higher grain prices push feed costs higher. *********************************************************************************** Lenders Can Now Apply for New Heirs’ Property Relending Program Intermediary lenders can now apply for loans through the new Heirs’ Property Relending Program, known as HPRP. The Department of Agriculture is accepting applications through October 29, 2021, and cooperatives, credit unions and nonprofit organizations are encouraged to apply for the competitive loans. The loans ultimately help agricultural producers and landowners resolve heirs’ land ownership and succession issues. Farm Service Agency Administrator Zach Ducheneaux (DOO-shu-know) states, “Heirs’ property issues have long been a barrier for many producers and landowners to access USDA programs and services.” The relending program provides access to capital to help producers find a resolution to these issues. Through HPRP, FSA loans up to $5 million at a one percent interest rate to eligible lenders. Those eligible lenders will reloan funds to heirs to help resolve title issues by financing the purchase or consolidation of property interests and financing costs associated with a succession plan. USDA will host a webinar on September 15 for interested lenders. *********************************************************************************** Tractor Supply Co. Launches Annual FFA T-shirt Fundraiser Tractor Supply Company this week launched its seventh annual FFA T-shirt Fundraiser nationwide. The retailer will sell a special-edition FFA T-shirt in stores and online to support the National FFA Organization for a limited time. Each year, Tractor Supply designs an exclusive T-shirt for the National FFA Convention and Expo and sells it before the event. Campaign proceeds will be distributed to chapters across the country, funding agricultural programs and activities for FFA youth. The 2021 FFA T-shirt is available for $12.99 at Tractor Supply stores nationwide, at TractorSupply.com and through the Tractor Supply mobile app. Proceeds from the program support three FFA programs: Gift of Blue, Living to Serve and Alumni Legacy. Since its inception in 2014, Tractor Supply's T-shirt Fundraiser has raised a total of $1,714,884 for FFA programs. Additionally, Tractor Supply supports FFA in its mission through multiple annual fundraising events, such as Grants for Growing and activities at the local level.
| Rural Advocate News | Wednesday September 1, 2021 |
Wednesday Watch List Markets On the first day of September, ADP's report of private sector job growth for August will be released at 7:15 a.m. CDT, a possible hint of Friday's unemployment report. The Institute of Supply Management's index of U.S. manufacturing is set for 9 a.m., followed by the Energy Department's weekly inventory report at 9:30 a.m. Weather Ida and her remnants will move through the mid-Atlantic on Wednesday while another system moves across the Northern Plains with increasing showers for the Dakotas down to Colorado. High temperatures will continue in the Southern Plains for the next few days, which is unfavorable for winter wheat planting.
| Rural Advocate News | Tuesday August 31, 2021 |
Vilsack Comments on USDA Trade Forecast The Department of Agriculture’s quarterly trade forecast released last week shows that U.S. agricultural exports not only continue at a record-setting pace for fiscal year 2021, but they will eclipse the 2021 total in fiscal year 2022. The August forecast is USDA’s first look at expected exports for 2022. Following the report, Agriculture Secretary Tom Vilsack says of farmers and ranchers, “global demand for their products is a testament to their quality, safety and commitment to sustainability and has led to a projected new record in U.S. agricultural exports.” The fiscal year 2021 forecast of $173.5 billion is $33.8 billion, or 24 percent, higher than the 2020 final total and nearly $17 billion above the previous record set in 2014. For fiscal year 2022, U.S. farm and food exports are projected at a record $177.5 billion, topping 2021’s forecasted level by $4 billion. The increase is primarily driven by expected record exports of soybeans, horticultural products, dairy products and sorghum. *********************************************************************************** USDA to Host AFS Webinars The Department of Agriculture will host webinars on African swine fever as part of African Swine Fever Action Week, September 13-17. USDA will host daily webinars to learn more about African swine fever and its global spread, actions the Animal and Plant Health Inspection Service is taking to safeguard the U.S., and biosecurity measures you can implement now to protect the U.S. herd. The Action Week is part of the continuing efforts to respond to the detection of African Swine Fever in the Dominican Republic and prevent its introduction into the United States, Puerto Rico, and the U.S. Virgin Islands. ASF has not been detected in Puerto Rico or the U.S. Virgin Islands, and USDA is committed to keeping it out of both islands and the rest of the United States. APHIS is taking this additional action to further safeguard the U.S. swine herd out of an abundance of caution. You can learn more and find registration at ahpis.usda.gov. *********************************************************************************** Truck Used in B100 Pilot Showcased at Farm Progress Show The 2021 Farm Progress Show is underway, and attendees can see one of the five trucks in last year’s B100 pilot program in Decatur, Illinois. The pilot, conducted by ADM, the Illinois Soybean Association, Optimus Technologies, American Lung Association, National Biodiesel Board and Missouri Soybean Merchandising Council, was designed to demonstrate the feasibility of commercial implementation of Optimus Technologies’ Vector System. The system enables conventional diesel vehicles to operate on 100 percent biodiesel, known as B100. Five of ADM’s Class 8 over-the-road trucks, equipped with The Vector System, were used in daily fleet operations. The vehicles successfully traveled hundreds of thousands of miles on B100, even in the coldest temperatures of a central Illinois and Missouri winter. The cab is on display outside ADM's exhibit at the corner of Seventh Progress Street and Central Progress Avenue. The 2021 Farm Progress Show runs from Tuesday (today) to Thursday in Decatur, Illinois. *********************************************************************************** Hurricane Ida Impacts Expected to Increase Fuel Prices GasBuddy’s weekly price outlook shows lower prices than last week but expects an increase following Hurricane Ida. Over the next few weeks, the national average may rise 5-15 cents per gallon or so, subject to damage assessments happening now. The weekly average price fell 2.2. cents to 4.12 per gallon, with diesel down one cent at $3.26 per gallon. Meanwhile, the Renewable Fuels Association says the Environmental Protection Agency can take action to minimize the hurricane’s impact on fuel prices. In a letter to the EPA, RFA’s Geoff Cooper states, “we ask that EPA take steps to immediately allow fuel terminal operators, blenders, and marketers to increase their use of fuel ethanol to help fill the void in gasoline supplies created by refinery shutdowns in the Gulf Coast.” Most oil refineries in the Gulf Coast region are either shut down or operating at reduced rates. When operating normally, these facilities account for about 12 percent of the nation’s refining capacity. *********************************************************************************** Texas Farm Animal Liability Act Changes Means Changing on-farm Signage Texas livestock owners need to update signage around their farm to keep protections under the Texas Farm Animal Liability Act. Texas AgriLife Extension agriculture law specialist Tiffany Dowell Lashmet tells AgriLife TODAY, “House Bill 365 made important changes to expand the scope of the Act in response to a Texas Supreme Court decision last year.” Previously, a sign was required only for farm animal professionals, but farm and ranch owners and lessees must also now hang a sign at or near their arena, corral or stable to get the statute’s protections. Passed in 1996, the Texas Supreme Court case in 2020 ruled the act did not apply to injuries on working farms and ranches. Texas lawmakers responded to ensure it applies to those entities, outlining all activities, species, and situations covered. Texas Farm Bureau and Texas and Southwestern Cattle Raisers Association will have signs available, or individuals can make their own. *********************************************************************************** Interior Department Expands Recreation on Fish and Wildlife Managed Areas The Interior Department Monday announced the U.S. Fish and Wildlife Service has opened new or expanded hunting and sport fishing opportunities across 2.1 million acres. The increase is the largest expansion of outdoor recreation opportunities in recent history. The increased recreational access includes 88 National Wildlife Refuges and one National Fish Hatchery. Secretary Deb Haaland (Holland) states, "Increasing access to outdoor recreation opportunities is essential to advancing the administration's commitment to the conservation stewardship of our public lands. The announcement expands 910 opportunities for hunting or fishing, as an opportunity is defined as one species on one field station. The announcement brings the number of units in the National Wildlife Refuge System where the public may hunt to 434 and the number where fishing will be permitted to 378. The U.S. Fish and Wildlife Service says hunting, fishing and other outdoor activities contributed more than $156 billion in economic activity in communities across the United States.
| Rural Advocate News | Tuesday August 31, 2021 |
Tuesday Watch List Markets Early reports out Tuesday include the Chicago PMI (purchasing managers index), which could give a hint as to how the economy is doing, and the Consumer Confidence Index. DTN will also be watching for any deliveries against the expiring September contracts, new Chinese buying and updated weather forecasts. Weather Tropical Depression Ida continues to produce tropical rainfall and flooding along its path across the Tennessee Valley and Southeast on Tuesday. A front across the southern portions of the Midwest and Central Plains will do the same with periods of showers.
| Rural Advocate News | Monday August 30, 2021 |
Western House Members Ask for FEMA Disaster Declaration Several members of Congress are asking President Biden to declare a drought disaster in the western United States as record temperatures and wildfires hit several states hard. Democrats Joe Neguse (Neh-GOOSE) of Colorado and Jared Huffman of California, whose districts have been hit hard by drought and wildfires, joined 31 other lawmakers in the House asking the president and the Federal Emergency Management Agency to release additional resources to help Western areas faced with water cuts as supplies dwindle. “There’s little to no livestock feed available in the West, farmers are considering selling their livestock or land, and many species of wildlife are suffering from wildfires and no water,” Huffman and Neguse wrote in a letter to the White House. “This drought could have long-term impacts on our food supply, wildlife, and the livelihoods of Americans across the Western U.S.” NBC News says the letter supports a similar request this month from governors of 10 drought-stricken states asking the Biden administration to declare a drought disaster that would allow “agricultural communities to get access to funds that aren’t available through existing disaster programs.” The governors pointed out in their letter that historic drought may wipe out entire crops, limit yields, and lead to extreme levels of pests and disease that could add to the disaster. *********************************************************************************** Ag Credit Conditions Continue Improving Strength in the U.S. agricultural economy continues to drive improvement in farm income and credit conditions. As in recent quarters, farm loan repayments rates increased rapidly, and loan demand remained subdued. Bankers in the Kansas City Federal Reserve Districts also continued to report additional increases in farm income. With support from stronger farm finances and historically low interest rates, farmland values increased by at least 10 percent in almost all states in the district. The sharp bounce back in the American farm economy over the past year has bolstered farm income and credit conditions. However, profit opportunities in the cattle industry remained more limited than other major commodities, and ongoing drought has also created concerns for some producers. But strong support from government aid programs has provided ongoing support, and the outlook for farm finances in 2021 remained strong based on recent reports across the Federal Reserve Districts. Farm income increased substantially from last year throughout all participating districts. In the Kansas City, Minneapolis, and St. Louis Districts, the majority of bankers all said income was higher than the same time last year, and less than ten percent say incomes had dropped. *********************************************************************************** Groups Urge Congress to Pass the Next Generation Fuels Act Growth Energy praised the introduction of the Next Generation Fuels Act, sponsored by Illinois Democrat Cheri Bustos (BOOS-tohs) and Republican James Comer of Kentucky. CEO Emily Skor says the legislation represents a clear roadmap for turbo-charging the country’s progress against climate change while offering drivers cleaner, more affordable options at the pump. “With a natural octane of 113, ethanol is the only high-performance, homegrown, renewable fuel that’s ready to immediately loosen the hold that OPEC and its allies in Russia have over U.S. fuel prices,” Skor says. “This also directly addresses a recent court decision that threatens to stall the growth of higher biofuel blends like E15.” She also points out that low carbon, higher biofuel blends hold enormous potential for rural America’s role in clean energy production. The National Farmers Union also hailed the legislation. “There are many benefits to adopting low-carbon, high octane ethanol blends,” says NFU President Rob Larew. “Higher blends increase engine and vehicle efficiency, providing greater GHG emission reductions, as well as reducing emissions of criteria pollutants and air toxics.” *********************************************************************************** Groups Disappointed in Neonicotinoid Evaluation Grower organizations representing a variety of crops are disappointed with the Environmental Protection Agency’s draft biological evaluation (BE) for several neonicotinoid (NEO-ni-koh-tee-noid) products. The groups representing farmers across the country say that failure to consider real-world usage data in the analysis conducted as part of the Endangered Species Act could limit growers’ ability to protect their crops from pests, protect their livelihoods, and make sure endangered species are safe. The American Farm Bureau Federation, American Soybean Association, National Cotton Council, and Minor Crop Farmer Alliance say ESA analysis, by law, is required to use “the best scientific and commercial data available” to ensure endangered species and their habitats will not be adversely affected by the agency’s decision. The groups point out that the EPA didn’t use the “best available data” and say that several assumptions the EPA made don’t align with how growers actually use the products. “USDA survey and commercial use data are available and show how growers use these tools, but the draft BE instead includes application rates, numbers, types, and reapplication timing for these products that are very inconsistent with the actual available data,” says Kevin Scott, president of the American Soybean Association. *********************************************************************************** USDA Announces Expanded Crop Insurance Options for Specialty, Organic Crops The number of agricultural producers who buy crop insurance for their specialty or organic crops continues to climb. USDA attributes that to its work with producers and agricultural groups in recent years to create new crop insurance options. USDA’s Risk Management Agency recently released reports on specialty crops, organic crops, local food production, and greenhouse production, which highlighted insurance option improvements for specialty crops like fruits, vegetables, tree nuts, horticulture crops, and organic crops. Some improvements were put in place by the 2018 Farm Bill, while others resulted from producer feedback and research. “We recognize the necessity to adapt insurance options to meet agricultural producers’ needs,” says RMA Acting Administrator Richard Flournoy. Between 1990 and 2020, liabilities for insured specialty crops rose from $1 billion to over $20 billion. From 2010 to 2020, liabilities for insured organic crops rose from $207 million to more than $1.7 billion, and the number of policies more than doubled. RMA and third-party groups also continue to refine existing policies and create new ones when there are gaps in coverage. Improvements include new options for California Citrus Trees, Florida Citrus, Hurricane Insurance Protection, and expanded crop insurance options for hemp. *********************************************************************************** Young Cattle Producers Needed for 2022 Convention Internships The National Cattlemen’s Beef Association is offering college students a unique behind-the-scenes experience at its annual convention internship program. The 2022 Cattle Industry Convention and NCBA Trade Show, the largest annual meeting of the U.S. beef cattle industry, will be on February 1-3, in Houston. Up to 18 interns will get selected and be responsible for setting up the indoor arena, assisting at committee meetings and Cattlemen’s’ College, posting on social media, and contributing in the NCBA booth. NCBA will also make sure the interns have adequate time to maximize their industry networking opportunities. Interns have to be available to work January 29-February 5, 2022, provide their own transportation to Houston, and be at least a junior in college at an accredited university at the time of the event. Applicants need a 3.0 GPA, should be well-versed in all areas of social media, and preferably have a background in or working knowledge of the cattle and/or beef industry. Students need to complete an online Student Internship Application and submit college transcripts, two letters of recommendation, and a resume. The deadline is October 16.
| Rural Advocate News | Monday August 30, 2021 |
Monday Watch List Markets Back from the weekend, traders will have checked rainfall amounts and the latest forecasts, especially the anticipated track of Tropical Storm Ida. A report on U.S. pending home sales is due out at 9 a.m. CDT, followed by USDA's weekly grain export inspections report at 10 a.m. USDA's Crop Progress report will be out at 3 p.m. CDT. Weather Heavy rainfall from now Tropical Storm Ida will continue to move north through the Deep South on Monday, causing a risk of flooding. Other scattered showers are expected along a front across the southern Midwest back through the Central and Northern Plains. Some severe storms could be possible in the Plains.
| Rural Advocate News | Friday August 27, 2021 |
NPPC Applauds ASF Protection Zone Designation The USDA announced its intention to designate Puerto Rico and the U.S. Virgin Islands as a “protection zone.” That’s a World Organization for Animal Health (OIE) designation that allows the U.S. to maintain its current animal health status should there be the detection of African Swine Fever or other foreign animal diseases on the island territories. The USDA will work to gain OIE acceptance of this designation to maintain U.S. pork export continuity should Puerto Rico or the U.S. Virgin Islands have an animal test positive for African Swine Fever in the future. The United States, including Puerto Rico and the U.S. Virgin Islands, remain free of ASF, a swine-only disease with no implications for human health. There is no commercial pork trade from Puerto Rico or the U.S. Virgin Islands to the U.S. mainland. “We thank Secretary Vilsack for taking this pre-emptive step to preserve the continuity of U.S. pork exports as we continue to work together to prevent the spread of African Swine Fever to the United States,” says Jen Sorenson, President of the National Pork Producers Council. The USDA, Customs and Border Protection, NPPC, and others are working together to contain the first outbreak of ASF in the Western Hemisphere in about 40 years to the Dominican Republic. *********************************************************************************** Grassley Wants Administration to Fill Ag Trade Positions Iowa Republican Senator Chuck Grassley called on President Biden to fill a couple of key USDA positions that deal with agricultural trade. He wants qualified officials appointed to the positions of Chief Agricultural Negotiator at the Office of the U.S. Trade Representative and Under Secretary for Trade and Foreign Agricultural Affairs. “I write to you today to express my concern that your administration is not making agricultural trade a priority,” Grassley said in the letter to the White House. “Two positions that are essential to agricultural trade have been left vacant, and there is no indication on when they will be filled. Appointing individuals to these two positions will allow the U.S. to expand market access and strengthen our agriculture community.” He points out that agriculture is essential to the livelihood of the 86,000 family farmers in Iowa and Americans who rely on export markets to sell the country’s abundance of food. “Every day that passes without qualified leadership in these positions means the U.S. is playing without a full team against our competitors,” Grassley also says. “Agriculture trade issues will continue to matriculate, and these two positions will have a portfolio that impacts every farmer and rancher in the country.” *********************************************************************************** NFU’s Larew Testifies on Increasing Use of Biofuels Rob Larew, president of the National Farmers Union, testified before the Environmental Protection Agency during a hearing on the planned revision of the Light-Duty Vehicle GHG Emission Standard. As automakers refine vehicle technology, the increased use and development of biofuels represents an opportunity to reduce Greenhouse Gas Emissions from internal combustion engines. Higher ethanol levels not only increase engine productivity but also reduce criteria air pollutants and air toxics once they are fully deployed. NFU has long supported biofuels, such as E30, that can be realized in new and existing internal combustion engines. Larew told the EPA that biofuels are a vital component of this nation’s energy policy. “NFU has long urged the EPA to support rural Americans by promoting higher-level blends of ethanol as a cost-effective means of achieving required and improved octane levels,” Larew says. “We again ask EPA to acknowledge the potential for high octane, low carbon fuels, such as E30, to reduce GHG emissions from light-duty vehicles.” Larew also reminded the EPA that the agency must also consider the economic benefits of the increased use of mid-level ethanol blends as a high octane, low carbon, cost-effective fuel will bring to struggling rural communities while also benefitting consumers. *********************************************************************************** Farmer Optimism, the Supply Chain, and How They Affect Tractor, Combine Sales In the second quarter of 2021, money that had been diverted by COVID-19 from travel and other activities into the small tractor market began to return to normal use. Sustained gains in commodity prices, however, have resulted in farmers continuing their buying sprees for larger tractors and harvesters, as shown in AEM’s monthly Ag Tractor and Combine reports. The under-40 horsepower tractor market has softened a bit compared with the big numbers from last year,” says Curt Blades, Senior Vice President of Ag Service for the Association of Equipment Manufacturers. “However, row crop tractors sales have performed well in the second quarter.” He also says the numbers are positive for articulated four-wheel-drive tractors, and even combines are showing “signs of life.” The biggest drivers behind the big-ticket equipment sales are the higher than usual commodity prices and farmer confidence that those prices are going to stay there for a while. However, the supply chain, especially when it comes to the availability of semiconductors, is restricting the available inventory of equipment across all segments. Total tractor inventory at the end of the second quarter of this year is down more than 37 percent compared to the same time last year. Blades notes the association is doing everything possible to help the industry get machines to dealer lots as quickly as possible. *********************************************************************************** U.S. Soy Crop Quality Report Issued U.S. Soy and Pro Farmer teamed up for the 2021 U.S. Soy Crop Quality Report. The crop looks good right now, but without moisture, that could fall in some areas. That report comes from Chip Flory, editorial director with Pro Farmer. He presented the results to hundreds of global customers during the U.S. Soy Global Trade Exchange and Specialty Grains Conference. Fields across much of the U.S. have good stands, but Flory says the pod counts weren’t there when they got out into the fields for the Pro Farmer Crop Tour. However, it’s not pod counts that lead to yield, but rather it’s how they fill out. Illinois took the top spot on the crop tour with an average of 1,279.8 pods in a 3X3 foot area. South Dakota set the low mark at an average of 996.9 pods. The report also says that many bean fields are at a critical stage and in need of rain. With rains in the next couple of weeks, those pods could easily fill out. However, if beans stay dry, they will lose pod fill. Meanwhile, the USDA says the average Illinois yield should be 64 bushels an acre, up from 59 bushels a year ago, and Iowa yields will be at 58 bushels an acre, up from 53 bushels last year. *********************************************************************************** U.S. Increasing Sugar Imports to Cover Domestic Shortfall The U.S. government says it is increasing the lower-tariff sugar import quota for the fiscal year 2021 by 90,100 tons. Reuters says the goal is to increase the short-term supply on the domestic market. The U.S. Trade Representative’s Office says it would allow this additional volume to enter the country until October 31, a month later than the usual cutoff. The U.S. fiscal year finishes at the end of September. With the addition to the Tariff Rate Quota, or TRQ, the total volume of sugar entering the U.S. at a lower tariff will rise to 1.2 million tons. That’s more than the 1.1 million tons the U.S. committed to within the World Trade Organization rules. It’s the second move from the U.S. government on sugar import quotas in the last two months. In July, it reallocated part of the TRQ import quotas to other countries because some of the original license holders failed to deliver their products. The Dominican Republic will get the largest share of the additional low-tariff quota at 19,000 tons, followed by Brazil and Australia. The increase comes as sugar futures on the U.S. domestic market are at their highest level in nine years.
| Rural Advocate News | Friday August 27, 2021 |
Friday Watch List Markets A report on U.S. personal incomes and spending in July is due out at 7:30 a.m. CDT. At 9 a.m. CDT, Federal Reserve Chairman Jerome Powell will address the Jackson Hole economic symposium and the University of Michigan's consumer sentiment index will be released at the same time. Traders will continue to keep an eye on the latest weather forecasts and watch for any news from the Environmental Protection Agency or news pertaining to export sales. Weather Batches of heavy rain were noted early Friday morning across the eastern Dakotas and Upper Midwest and are forecast to continue developing throughout the day, which may cause flooding in drought-afflicted areas. Additional showers are expected to develop from eastern Colorado into western Iowa and across Montana and the western Dakotas late this afternoon and evening and could be severe. Hot temperatures continue to stress the final fill stages south of this zone of showers.
| Rural Advocate News | Thursday August 26, 2021 |
USDA Establishes Dairy Donation Program Department of Agriculture Deputy Secretary Jewel Bronaugh (Bruh-NAW) Wednesday announced the establishment of a $400 million Dairy Donation Program. The program aims to facilitate timely dairy product donations while reducing food waste. The establishment of DDP is part of the $6 billion pandemic assistance USDA announced in March and follows last week's announcement of the $350 million Pandemic Market Volatility Assistance Program for dairy farmers. Under the DDP, eligible dairy organizations will partner with non-profit feeding organizations that distribute food to individuals and families in need. Those partnerships may apply for and receive reimbursements to cover some expenses related to eligible dairy product donations. The program was inspired in part by the donations made by Michigan Milk Producers Association in conjunction with the Food Bank of Eastern Michigan in response to the Flint water crisis. Deputy Secretary Bronaugh says, “Together we can help someone in need, minimize food waste and support the U.S. dairy industry.” *********************************************************************************** USDA to Invest $50 Million in New Cooperative Agreements for Racial Justice and Equity The Department of Agriculture is investing up to $50 million in cooperative agreements to support historically underserved farmers and ranchers with climate-smart agriculture and forestry. The Racial Justice and Equity Conservation Cooperative Agreements are available to entities for two-year projects that expand the delivery of conservation assistance to farmers who are beginning, limited resource, socially disadvantaged, and veteran farmers. USDA Natural Resources Conservation Service Chief Terry Cosby says, "USDA is committed to revising programs to be more equitable, and these producers deserve our support as they contribute to our vibrant and diverse agricultural communities." The projects should help historically underserved farmers and ranchers implement natural resources conservation practices that improve soil health and water quality, provide habitat for local wildlife species of concern, and improve working agricultural land's environmental and economic performance. Entities that provide outreach assistance to historically underserved groups are eligible to apply for the funding. *********************************************************************************** U.S. Wheat Associates Welcomes Suspension of Vietnam Wheat Import Tariff U.S. Wheat Associates applauds USDA’s Foreign Agricultural Service for their work alongside Vietnam’s Ministry of Finance to reduce the cost of wheat for Vietnam’s millers and consumers. Vice President Kamala Harris announced Vietnam will reduce or eliminate import tariffs on several U.S. commodities, including wheat. The tariff suspensions are expected to be implemented soon. It will also help make U.S. wheat more competitive in Vietnam’s growing wheat market. Like many countries this year, Vietnam has seen significant food and feed price inflation due to the rise in global commodity prices and COVID impacts on supply chains. The newly announced reduction follows one from July 2020, when Vietnam reduced its tariff on imported U.S. wheat, excluding durum, from five percent to three percent. Despite the tariffs, Vietnam’s imports of U.S. hard red winter, soft white and hard red winter wheat exceeded 500,000 metric tons in marketing year 2020/21, second in volume only to Australia. *********************************************************************************** Lawmakers Ask U.S. Ambassador to Iraq to Support U.S. Wheat Sales to Iraq Republican Senators call on U.S. Ambassador to Iraq Matthew Tueller ( too-lur) help Iraq purchase wheat. Four Senators joined Roger Marshall of Kansas in signing the letter, Senators John Boozman of Arkansas, Jerry Moran of Kansas, John Cornyn of Texas, and James Inhofe of Oklahoma. The lawmakers specifically ask Ambassador Tueller to engage in the wheat tendering process and for the U.S. State Department to offer additional assistance to the Iraqis to purchase U.S. wheat. From the time a tender is issued, it takes nearly three months for wheat to arrive in the country. The letter states, "Wheat purchases by Iraq require multiple ministries working in tandem, which is where we are hopeful your outreach to them can be helpful." The letter cites smaller than expected harvest and lower government procurement of local, which means Iraq will need to import a substantial volume of wheat to continue to operate their primary subsidized feeding program, the Public Distribution System. *********************************************************************************** NFU Welcomes New Guidance on Enforcement of Packers and Stockyards Act Provision USDA this week issued a guidance document on how the department will enforce the final rule on "Undue and Unreasonable Preferences and Advantages" under the Packers and Stockyards Act. The guidance comes as USDA composes new rules to bring fairness to the marketplace for farmers and ranchers. National Farmers Union strongly supports strengthening the Packers and Stockyards Act to protect livestock producers from unfair treatment and practices by meatpackers and integrators. In response, NFU President Rob Larew states, “We welcome USDA’s newly released guidance, which demonstrates a further commitment to strong enforcement of the Packers and Stockyards Act.” USDA says the proposed rules will strengthen the department’s enforcement of unfair and deceptive practices and undue preferences, address the poultry grower tournament system, and make it easier for USDA to bring enforcement actions under the Act. And, USDA says the enforcement policy commits USDA to defend farmers to the maximum extent possible. *********************************************************************************** EPA Announces Resources to Better Address Nutrient Pollution Affecting Waters The Environmental Protection Agency this week released new resources to address adverse effects of nutrient pollution in waters, including algae blooms. The three new resources will help EPA’s co-regulators and partners better protect waters from the effects of nutrient pollution. The three resources include the agency’s Final Recommended Nutrient Criteria for Lakes and Reservoirs, a web-based tool with information and tracking of harmful algal blooms. EPA has published revised recommended ambient water quality criteria under the Clean Water Act to help address nutrient pollution in lakes and reservoirs. EPA says the new criteria will help protect drinking water sources, recreational uses, and aquatic life in our nation’s lakes and reservoirs. EPA has also published a new ArcGIS StoryMap that will allow the public to learn about and track reported cyanobacteria (sy-an-no) in freshwaters across the country. Finally, the EPA has published a Final Technical Support Document for co-regulators such as states, territories and tribes to protect swimmers from two cyanobacterial toxins produced by harmful algal blooms.
| Rural Advocate News | Thursday August 26, 2021 |
Thursday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims, an estimate of U.S. GDP for the second quarter and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas inventories is set for 9:30 a.m. Traders remain interested in the latest weather forecasts and any export news that arises. Weather Thursday is shaping up to be very active across the Dakotas and into the Upper Midwest. Heavy rainfall is forecast to increase throughout the day and there may be some severe weather as well. Rainfall may provide some late benefit to filling corn and soybeans but should help to ease the drought as well. To the south of this zone of rain, it will remain hot and humid, stressing the end of the fill period for crops.
| Rural Advocate News | Wednesday August 25, 2021 |
USDA Updates CFAP 2.0 for Poultry and Specialty Crop Producers The Department of Agriculture Tuesday announced Coronavirus Food Assistance Program 2, or CFAP 2, funds for contract livestock producers and specialty crop growers. CFAP 2 assists producers who faced market disruptions in 2020 due to COVID-19. USDA announced $1 billion is available through the program to contract producers of eligible livestock and poultry for revenue losses in 2020. USDA expanded coverage to include chickens, poultry eggs, turkeys, hogs and pigs, ducks, geese, pheasants and quail, including eligible breeding stock and eggs of all eligible poultry types produced under contract. USDA now also allows contract producers to use eligible revenue from 2018 or 2019 to prove losses compared with 2020 revenue. USDA also announced it is amending the CFAP 2 payment calculation for several commodities by allowing farmers to substitute 2018 sales for 2019 sales. Sign-up for CFAP 2 was re-opened in March and remains open. All new and modified CFAP 2 applications are due by October 12. *********************************************************************************** USDA On Track to Provide Record Support for Rural Working Capital USDA Rural Development undersecretary Justin Maxson says the department of Agriculture is on track to provide record support of rural working capital in the current fiscal year. USDA has invested $1.2 billion in loan guarantees to help rural businesses in 41 states, Guam and the Virgin Islands. The investments made through the Business and Industry Loan Guarantee Program and the Business and Industry CARES Act Program are expected to create or save more than 12,000 jobs for people in rural areas. USDA has invested $811 million through the Business and Industry Loan Guarantee Program since the start of the current fiscal year. The assistance has helped businesses create or save more than 6,000 jobs in rural areas. USDA also invested $380 million in rural businesses through the Business and Industry CARES Act Program. Maxson states, “USDA remains committed to helping rural businesses create job opportunities so rural Americans can build back better and stronger than ever before.” *********************************************************************************** USDA Announces Proposed Framework for Advancing Surveillance for SARS-CoV-2 The Department of Agriculture is dedicating $300 million in American Rescue Plan Act funding to conduct surveillance for SARS-CoV-2 and other emerging and zoonotic diseases. The effort aimed at susceptible animals includes building an early warning system to alert public health partners to potential threats so they can take steps sooner to prevent or limit the next global pandemic. USDA’s Animal and Plant Health Inspection Service is the lead agency responsible for implementing the early warning system. The framework outlines how the agency will focus its efforts to prevent, detect, investigate and respond to SARS-CoV-2, the virus that causes COVID-19, and other emerging and zoonotic diseases that could pose a threat to both people and animals. Establishing an early warning system will require a multi-year effort. USDA will build upon its existing infrastructure to implement a risk-based, comprehensive, integrated disease monitoring and surveillance system domestically, and enhance collaboration internationally. *********************************************************************************** Senators Urge EPA to Waive Biofuel Blending Requirements A Group of 17 Republican Senators call on the Environmental Protection Agency to waive or significantly reduce volume requirements for 2020, and set the upcoming 2021 and 2022 renewable fuel obligations “at levels that reflect reality.” In a letter to the EPA, the lawmakers state, “Obligated parties subject to the onerous requirements of the RFS have been facing historically high compliance costs, which threaten the viability of these entities’ continued operations.” The senators continued, “We urge EPA to take action to reduce RFS compliance costs in order to avert additional financial hardship for consumers and protect the continued viability of U.S. refineries.” Renewable Fuels Association President and CEO Geoff Cooper responds to the letter, stating it “just rehashes the same tired arguments that have been disproven time and time again.” Cooper says “anti-ethanol” Senators are “circling the wagons to protect the status quo for Big Oil and continuing their efforts to undermine cleaner, greener renewable fuels.” *********************************************************************************** Colorado Senator Launches Outdoor Restoration Partnership Act Promotion Tour Colorado Senator Michael Bennet Tuesday launched a promotion tour in Colorado for his Outdoor Restoration Partnership Act. The two-day tour, according to the Democratic Senator, shows the need to include the legislation in the Build Back Better Budget. The bill would invest $60 billion in forests and watersheds. Bennet first introduced this proposal in December that he says will provide direct support to local, collaborative efforts to restore habitat, expand outdoor access, and mitigate wildfire. Reintroducing the bill earlier this year, Bennet stated, “For too long, Congress has failed to meaningfully invest in our western lands, undermining our economy and way of life.” Bennet says the bill will generate over $156 billion in economic output, with a return of up to $15 for every dollar spent on restoration, while upgrading natural infrastructure. The proposal has bipartisan support, and a companion bill was introduced in the House of Representatives by lawmakers from Colorado and Idaho. *********************************************************************************** Beck's Hybrids Acquires Bayer Facility in Iowa Beck's Hybrids this week announced the purchase of a Bayer processing plant in Beaman, Iowa, for soybean production and processing. The fully operational site will provide Beck's with soybean seed processing capabilities and additional warehousing. Beck's CEO Sonny Beck says, "This new facility will allow Beck's to maximize efficiency, stay ahead of demand, and deliver products faster." Ten former Bayer employees were hired by Beck's to continue operations at the facility. The facility features approximately 30,000 square feet of warehousing and is configured with modern equipment necessary for Beck's to process and treat one million units of soybeans per year. In addition to the facility in Beaman, Beck's has three other locations in Iowa. As the largest family-owned retail seed company in the United States, Beck's has seen tremendous growth over several decades and has doubled in size in the past six years alone. Today, Beck's is the third-largest corn and soybean brand in the United States.
| Rural Advocate News | Wednesday August 25, 2021 |
Wednesday Watch List Markets A report on U.S. durable goods orders in July is due out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly inventory report at 9:30 a.m. Traders will keep an eye on the latest weather forecasts and pause at 8 a.m. to see if USDA has another export sale announcement. Weather A frontal boundary across the Corn Belt will remain active on Wednesday and could contain more severe weather due to the high heat and humidity south of the front. The heat is likely to be stressful where showers do not occur, but most areas south of the front have adequate soil moisture for filling crops with some exceptions, mainly in the Plains.
| Rural Advocate News | Tuesday August 24, 2021 |
USDA Accepts 2.8 Million Acres for the Conservation Reserve Program The Department of Agriculture has accepted 2.8 million acres in offers for enrollment into the Conservation Reserve Program in 2021. This year, almost 1.9 million acres in offers have been accepted through the General CRP Signup, and USDA’s Farm Service Agency has accepted over 897,000 acres for enrollment through the Continuous Signup. The Continuous Signup remains open, and CRP Grasslands Signup closed last week, so USDA expects to enroll more acres into all of CRP than the three million acres that are expiring. Despite Congress raising the enrollment target in the 2018 farm bill, there have been decreases in enrollment for the past two years. USDA made changes this spring to reverse the trend. FSA Administrator Zach Ducheneaux (DOO-shu-know) says, “Even with the improved direction, USDA will still be about 4 million acres below the enrollment target.” The four million-acre shortfall in CRP would represent A loss of 1.5 million acres of quality wildlife and pollinator less habitat for wildlife. *********************************************************************************** EPA Proposing to Lower RFS Blending Requirements for 2021 The Environmental Protection Agency is expected to urge the White House to lower biofuel blending mandates below 2020 levels. However, the proposal will increase renewable volume obligations in 2022. EPA is sending the proposal to the White House Office of Management and Budget. Reuters first reported the proposed RVO levels Friday, as sources say the EPA is looking to align mandates with actual production levels, which have slumped during the coronavirus pandemic. Additionally, the 2021 mandates are more than a year and a half delayed and were supposed to be released in November 2020, by the Trump administration. The mandate outlines the required amount of biofuels refiners must blend in their fuels. Senator Chuck Grassley, an Iowa Republican, released a reaction statement last week. Grassley says, “If the reports are true, then once again, the EPA is giving a gift to Big Oil and is playing games with the Renewable Fuel Standard law.” *********************************************************************************** U.S. Keeping Canada Border Closed Through September 21 The U.S. Homeland Security Department recently announced the continued closure of the U.S.-Canada border through September 21, citing COVID-19 concerns. The closure includes restrictions on non-essential travel at land and ferry crossings with Canada and Mexico but ensures the flow of essential trade and travel. Meanwhile, Canada opened the border earlier this month to non-essential travelers from the United States, and Canada boasts higher vaccination rates than the United States. U.S. Representative Brian Higgins, a Democrat from New York, serves as co-chair of both the Northern Border Caucus and the Canada – U.S. Interparliamentary Group. Higgins states, “There has not been enough attention placed on the value and opportunity that comes with restoring connections between our two nations.” Travel restrictions at land ports of entry between the United States and Canada were first implemented in March 2020. Higgins adds the extension “is beyond disappointing; it is hurtful both at a human and economic level.” *********************************************************************************** Rep. Bustos Visits Illinois Hog Farm, Tax, Labor Reform Discussed U.S. Representative Cheri Bustos visited with Illinois hog farmers and the Illinois Pork Producers Association last week. The Illinois Democrat discussed the upcoming budget reconciliation package and potential areas of concern to pork producers. During a farm visit, producers shared concerns with the possible elimination of the “step-up in basis,” as well as a new capital gains tax event at death. Additionally, producers discussed the need to reform the H-2A visa program, noting the severe shortfalls in available domestic labor. A recently updated Iowa State University study found that despite competitive wages and an expanding workforce, the U.S. pork industry continues to struggle with a labor shortage. The pork industry uses the H-2A visa program for specialized work, but cannot use the program for most labor needs because of its seasonal limitation. The National Pork Producers Council urges Congress to provide year-round access to the H-2A visa program without a cap. *********************************************************************************** First Giant Hornet Nest of 2021 Found in Washington State Agriculture officials found the first giant hornet nest of 2021 last week in Washington state. The nest, located near Blaine, Washington, is about a quarter-mile away from the first reported giant hornet spotting this year on August 11. A Washington state tracking team, along with the Oregon Department of Agriculture and USDA's Animal and Plant Health Inspection Service, located the nest. WSDA netted, tagged with a tracker and released three hornets. One hornet slipped out of the tracking device, another hornet was never located, and one eventually led the team to the nest. Entomologists will now develop their plans to eradicate the nest, happening this week. Asian giant hornets, also known as murder hornets, are not native to the United States. They are the world’s largest hornet and prey on honeybees and other insects. This is the first known nest found this year, and agriculture officials in the Pacific Northwest believe more are undiscovered. *********************************************************************************** Fuel Prices Continue Slide The nation's average gas price declined for the second straight week, down 3.3 cents per gallon from a week ago to $3.14 per gallon. The national average now stands unchanged from a month ago and $1.01 per gallon higher than a year ago. The national average price of diesel is down 0.9 cents in the last week and stands at $3.27 per gallon. Gas Buddy's Patrick De Haan states, “Gasoline prices have started to slide over the last few days as oil prices have plunged, largely fueled by a continued global surge in COVID-19.” De Haan also notes concerns that fuel demand may shrink as more companies table return to work plans and the summer driving season comes to a close, and he expects the national average gas price to fall below $3 per gallon within the next few weeks. While Covid cases may eventually slow, OPEC has continued its plan to ramp up oil production every month until 2022, leaving oil under heavy selling pressure.
| Rural Advocate News | Tuesday August 24, 2021 |
Tuesday Watch List Markets Traders will be watching the latest forecasts and for any signs of export sales. Tuesday's only official report is for U.S. new home sales in July, due out at 9 a.m. CDT. The market is also interested in any news that might develop pertaining to a change in biofuels policy. Weather Clusters of storms over Minnesota will continue to move southeast this morning and more development is expected across the general vicinity later today as another system moves through the region. The active track across the north continues to produce rainfall. It may be too late for some to provide much help, but will help to ease the drought in the region for sure. South of the storms, heat and dryness will continue to stress filling crops.
| Rural Advocate News | Friday August 20, 2021 |
USDA Announces Improvements to the Dairy Safety Net The Department of Agriculture Announced details of the Pandemic Market Volatility Assistance Program Thursday. Through the program, USDA will provide $350 million in pandemic assistance payments to dairy farmers who received a lower value for their products due to market abnormalities caused by the pandemic. The assistance is part of a larger package, including permanent improvements to the Dairy Margin Coverage safety net program. USDA will contact eligible handlers and cooperatives to notify them of the opportunity to participate in the program. USDA will distribute payments to participating handlers within 60 days of entering into an agreement. The program is part of the $6 billion pandemic assistance USDA announced in March. Outside the pandemic assistance, USDA will also make improvements to the Dairy Margin Coverage safety net program updating the feed cost formula. The change will be retroactive to January 2020 and is expected to provide additional retroactive payments of about $100 million for 2020 and 2021. *********************************************************************************** USDA Invests $26 Million in Biofuel Infrastructure The Department of Agriculture will invest $26 million to build infrastructure to expand the availability of higher-blend renewable biofuels by 822 million gallons annually in 23 states. Announced Thursday, USDA is making the awards under the Higher Blends Infrastructure Incentive Program. The funding will help increase the use of biofuels derived from U.S. agricultural products and prioritize climate-smart solutions, according to USDA. The announcement marks the one-year anniversary of the Higher Blends Infrastructure Incentive Program. National Biodiesel Board’s Kurt Kovarik says, “Updating America's infrastructure to expand consumer access to low-carbon biodiesel and Bioheat fuel is a low-cost, high-return investment in meeting the nation's goals for near-term carbon reductions.” NBB adds that Biodiesel reduces carbon emissions on average by 74 percent and considerably cuts particulate matter and other criteria pollutant emissions. The combined projects will reduce the nation's carbon emissions by more than 7.2 million metric tons each year at a cost of less than $2.25 per ton. *********************************************************************************** EPA Chlorpyrifos Rule Revokes Crop Tolerances on Food and Animal Feed The Environmental Protection Agency announced this week it is revoking all “tolerances” for chlorpyrifos (Klohr-PEER-uh-fohs), which establish an amount of a pesticide that is allowed on food. The agency will issue a Notice of Intent to Cancel under the Federal Insecticide, Fungicide, and Rodenticide Act to cancel registered food uses of chlorpyrifos. EPA officials say the move “will help to ensure children, farmworkers, and all people are protected.” According to EPA's decision, growers must discontinue use of chlorpyrifos on registered food crops within six months. Farm Bureau President Zippy Duval responded, “This administration has repeatedly made commitments to abide by science, yet the EPA decision on chlorpyrifos strays from that commitment and takes away an important tool to manage pests and insects.” And Agricultural Retailers Association President and CEO Daren Coppock states, “By issuing this mandate, and EPA not fighting it, anti-pesticide activists have executed an end run around the statute that is supposed to govern these decisions.” *********************************************************************************** New Website Offers Regenerative Agriculture Resources The University of Missouri Thursday announced a new website focused on regenerative agriculture topics. Regenerative agriculture has sparked considerable interest over the last few years, offering a toolbox of practices that aim to increase soil health, protect water quality, and enhance conservation approaches on farms. Major food and agriculture companies such as General Mills, Bayer, Walmart, Cargill, Corteva, Pepsico, Unilever, and even clothing companies like Wrangler have recently prioritized regenerative agricultural practices. The website aims to allow farmers, landowners, farm advisors, and even consumers to access a wide range of information on regenerative agriculture practices and concepts. Kelly Wilson of the Center for Regenerative Agriculture states, “The new site offers resources for different levels of expertise, so that different people can learn about practices and target outcomes associated with regenerative agriculture.” Visit the website at cra.missouri.edu and sign up for the Center’s newsletter to receive monthly updates on what’s happening in regenerative agriculture. *********************************************************************************** AgriSafe Launches New Website to Support Safety for Farmers and Ranchers The AgriSafe Network recently launched a new website focused on health topics for farmers and ranchers. The website, announced Thursday, integrates AgriSafe’s learning management system that includes fact sheets, webinars, and safety information for health professionals with health topics. The Health Topics page of the website is designed to help farmers and ranchers navigate occupational risks and servers as a trusted and reliable information on health and safety issues. Additionally, the website includes a “Learning Opportunities” section which features content produced by AgriSafe for health and safety professionals and rural healthcare providers. An AgriSafe spokesperson states, “This new space serves as a hub for the people working in agriculture to find specific information to their needs.” Agriculture ranks among the most hazardous industries, according to the National Institute for Occupational Safety and Health. AgriSafe represents health and safety professionals who strive to reduce health disparities found among the agricultural community. For more information, visit www.agrisafe.org. *********************************************************************************** Farm Journal Acquires United Pork Americas Farm Journal this week acquired the international United Pork Americas conference and trade show. For the past two decades, more than 150,000 international swine producers, veterinarians and industry stakeholders have experienced the event, Pork Expo Brazil. An extension of Pork Expo Brazil, the United Pork Americas conference, is set for April 19-21, 2022, at the Hyatt Regency in Orlando, Florida. Farm Journal’s Cliff Becker states, “We're excited to invest in the tools that pork industry stakeholders need to prosper in an ever-increasing global environment.” The United Pork Americas conference will feature an educational component with more than 50 internationally renowned speakers and sessions to provide educational opportunities for swine producers, veterinarians and industry stakeholders. It also will feature more than 28,000 square feet of Expo space, where domestic and international swine companies will have booths in an expansive trade show format to bring applicable information and resources to every facet of the pork production system.
| Rural Advocate News | Friday August 20, 2021 |
Friday Watch List Markets After Thursday's broad-based selling across the commodity board, traders may be a little jumpy and will be watching for any news of coronavirus infections and how it relates to numerous shipping problems currently occurring. The latest weather forecasts remain important with rain headed to the northwestern Midwest. USDA's August 1 cattle on-feed report at 2 p.m. CDT is the only significant report scheduled for Friday. Weather A system pulling out of the Rockies will continue to produce scattered showers and thunderstorms across the Western Corn Belt Friday, benefiting filling corn and soybeans. Some of these storms may be severe as well. Hot temperatures ahead of the system are falling rapidly behind it. More showers and thunderstorms will be possible across the South and Southeast as well.
| Rural Advocate News | Thursday August 19, 2021 |
USDA Reports on Farm Computer Usage and Ownership The Department of Agriculture Wednesday released the 2021 Farm Computer Usage and Ownership report. The report is conducted every other year and presents data on farm computer usage, including computer access, ownership or leasing, farm business use, and internet access. The findings show that 82 percent of farms reported having access to the internet, with 98 percent paying for access. In 2021, 29 percent of farms used the internet to purchase agricultural inputs, which increased five percent from 2019. Additionally, 21 percent of farms used the internet to market agricultural activities, increasing two percent from 2019. In 2021, 50 percent of internet-connected farms utilized a broadband connection, while 70 percent of internet-connected farms had access through a cellular data plan. Additionally, 67 percent of farms had a desktop or laptop computer, while 77 percent of farms had a smartphone. USDA collected the data as part of the June Agricultural Survey. *********************************************************************************** Steakhouses Struggling to Recover from COVID-19 Steakhouses are struggling to recover from the COVID-19 pandemic as the Delta variant of the virus expands, and beef prices are moving higher. Top steakhouses that provide a dining experience and high-priced cuts of beef see the Delta variant as a possible threat to travelers and group events. Several chains say they are better prepared amid the pandemic this year since adding outdoor dining and home delivery, should the latest surge or new government restrictions scare diners away again, according to Reuters. However, sales at high-end chains peaked last month before falling slightly to start August. Meanwhile, government data shows wholesale beef prices are up 40 percent from this time last year. Industry consultant Martin Knapp told Reuters, "We won't get the lift we had expected before the magnitude of the Delta variant came through.” However, the potential of booster shots of the COVID-19 vaccine could help as soon as next month. *********************************************************************************** Groups Ask Lowe’s, Home Depot to Pull Roundup from Shelves A coalition of consumer, health and environmental groups call on Lowe’s and Home Depot to remove Roundup from store shelves. The groups, including Friend of the Earth, claim consumers can’t wait, urging the stores to remove the products now. Bayer last month announced long-term risk mitigation actions to prevent further litigation regarding Roundup. The plan calls for replacing its glyphosate-based products in the U.S. residential lawn and garden market with new formulations that rely on alternative active ingredients beginning in 2023. Bayer’s decision only applies to consumer markets, as the company will continue selling glyphosate-based formulas for agricultural and professional use. Bayer also asked the Supreme Court to review the Ninth Circuit Hardeman decision this week. The Petition states that the Ninth Circuit’s lenient standard “has distorted [existing law] beyond recognition, and blurs the boundaries between science and speculation with a third category called ‘art,’ or unsupported intuitions purportedly rooted in clinical experience.” *********************************************************************************** Researchers Explore Climate, Human and Wildlife Interactions on Rangeland Researchers in the West are exploring the combined effect of wolves and drought, humans, plants and animals on rangeland in Idaho and Oregon. The University of Idaho is leading the five-year effort. Funded by a $1.6 million National Science Foundation grant, researchers will monitor six sites to learn how drought could affect vegetation in the region and how resulting changes impact elk, deer and livestock, as well as their interactions with predators. Scientists will also explore on a broad scale what effect wolves and drought jointly have on ranching communities. Researcher Sophie Gilbert states, "We'll look at the interactions between wolves and drought and how those affect wild ungulate populations, as well as livestock and the people who live there." The research also seeks to determine how decision-makers respond to these multiple sources of stress, and how wildlife and plant forecasting tools resulting from the project, are received and used by ranchers and wildlife managers. *********************************************************************************** USDA Accepting Applications to Help Cover Costs for Organic Certification Organic producers and handlers can now apply for Department of Agriculture funds to assist with the cost of receiving or maintaining organic certification. Applications for the Organic Certification Cost Share Program are due November 1, 2021. Announced this week, the funds provide cost-share assistance to producers and handlers of agricultural products for the costs of obtaining or maintaining organic certification under USDA’s National Organic Program. Eligible producers include any certified producers or handlers who have paid organic certification fees to a USDA-accredited certifying agent during 2021 and any subsequent program year. Producers can be reimbursed for expenses made between October 1, 2020, and September 30, 2021. For 2021, the program will reimburse 50 percent of a certified operation’s allowable certification costs, up to a maximum of $500 for each category of crops, wild crops, livestock, processing, and state program fees. Organic farmers and ranchers may apply through an FSA county office or a participating state agency. *********************************************************************************** Avoid Foodborne Illness During Temporary Power Outages USDA’s Food Safety and Inspection Service is reminding consumers to avoid foodborne illnesses during temporary power outages. The agency Wednesday cited Department of Energy data that found weather-related power outages are up by 67 percent since 2000. With high temperatures this summer, energy consumption is high, which may cause some power grids to experience blackouts, an unexpected loss of power lasting minutes, hours or days. Electricity providers will either ask customers to voluntarily conserve energy at home, or they will schedule a reduced flow of electricity — a brownout — to certain areas of the grid to prevent a complete blackout. If your home experiences a temporary power outage, FSIS says monitor fridge and freezer temperatures. Make sure the refrigerator temperature is at 40 F or below and the freezer is at 0 F or below. Most fridges will keep food safe for up to four hours, while a freezer can keep food safe up to 48 hours.
| Rural Advocate News | Thursday August 19, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, the same time as weekly U.S. jobless claims and an update of the U.S. Drought Monitor. An index of U.S. leading indicators in July is set for 9 a.m., followed by the Energy Department's weekly report on natural gas inventory at 9:30. USDA's monthly report on Milk Production will be out at 2 p.m. CDT. Weather In addition to scattered showers continuing around the South, a system is starting to move out of the Rockies and into the Northern Plains. This system is expected to produce fairly widespread showers on Thursday and Friday across the Western Corn Belt. All rainfall would be helpful for filling corn and soybeans.
| Rural Advocate News | Wednesday August 18, 2021 |
Biofuel and Farm Groups File Petition for Rehearing of D.C. Circuit RVP Decision Biofuel and farm groups filed a petition for rehearing with the D.C. Circuit Court of Appeals regarding the recent American Fuel & Petrochemical Manufacturers vs. EPA decision. The court decision vacated a 2019 regulation allowing year-round sales of a fifteen percent ethanol fuel blends. The petition asks the full court to rehear the case because of significant legal errors in the three-judge panel's decision, handed down on July 2. Announced Tuesday, Growth Energy, the National Corn Growers Association and the Renewable Fuels Association filed the petition. Together, the three national organizations stated, “If allowed to stand, this court’s decision to vacate EPA’s rulemaking to allow E15 to be sold year-round will have devastating consequences for the market expansion of homegrown biofuels.” The D.C. Circuit Court of Appeals reversed a 2019 rule by the Environmental Protection Agency that lifted restrictions on the sale of E15. The case was a challenge by oil refiners to the rulemaking that allowed the year-round sale of E15. *********************************************************************************** Comment Period Closes on NCBA Product of USA Petition The comment period just closed on a petition to change "Product of USA" labeling to "Processed in the USA" by the National Cattlemen's Beef Association. Comments closed Tuesday on the petition announced in June and submitted to USDA's Food Safety and Inspection Service. NCBA calls “Product of USA” labeling “a disservice to American consumers and cattle producers alike,” suggesting the claim implies that a beef product is entirely of U.S. origin. Senator Mike Rounds, a Republican from South Dakota, charged a flurry of comments before the deadline, after announcing his opposition to the proposal, with several following comments supporting his take. In comments submitted Friday, Rounds states, "If FSIS adopts NCBA’s proposal, consumers would have to sacrifice knowing where their beef comes from only to merely know where their beef is processed.” Rounds, agreeing with NCBA the “Product of USA” label is misleading, adds the “Processed in the USA” label “woefully undermines the purpose of the label in the first place.” *********************************************************************************** Scott, Bishop, Asks USTR to Tackle EU Trade Barriers for Peanuts Top House Agriculture lawmakers want the U.S. Trade Representative's Office to resolve an issue regarding European Union aflatoxin testing in peanuts. House Agriculture Committee Chair David Scott and House Appropriations Agriculture Subcommittee Chair Sanford Bishop sent a letter on the matter to USTR this week. The Georgia lawmakers say the non-tariff trade barrier impacts"American peanut farmers and the entire U.S. peanut industry." Aflatoxin is a naturally occurring contaminant that affects a variety of crops, including peanuts. The U.S. Food and Drug Administration established a maximum threshold for aflatoxin of 15 parts per billion for raw peanuts and 20 parts per billion for peanut products. However, the EU enforces an extra level of testing at European ports and maintains thresholds for aflatoxin that range from as low as two parts per billion to 15 parts per billion. The U.S. peanut industry estimates approximately $170 million in lost sales in recent years because of the strict testing requirements. *********************************************************************************** USDA Expanding Importation of Fresh Citrus Fruit from Australia The Department of Agriculture announced Tuesday the expansion of the production areas in Australia authorized to import fresh citrus fruit into the United States. USDA’s Animal and Plant Health Inspection Service also revised the conditions under which citrus from Australia may be imported. Currently, imports of fresh citrus fruit are allowed into the United States from three Australian regions, but the announcement adds three additional approved regions. APHIS scientists prepared a pest risk assessment and a commodity import evaluation document to identify phytosanitary measures to safely import citrus without introducing pests. The citrus fruit must either originate from an approved production area that is free of Queensland fruit fly, Mediterranean fruit fly, and/or Lesser Queensland fruit fly, or be treated with cold treatment or other approved treatment. Based on the findings of a pest risk analysis, APHIS determined that the application of one or more outlined phytosanitary measures will sufficiently mitigate the risks of plant pests and noxious weeds. *********************************************************************************** USDA Invests $69 Million to Support Critical Food and Nutrition Security Needs The Department of Agriculture Tuesday announced a $69 million investment to address the food and nutrition needs of low-income communities. Twenty awards totaling $61.5 million are for Nutrition Incentive Grants, and 15 awards totaling $7.5 million are for Produce Prescription Grants. The grants are all part of the National Institute of Food and Agriculture's Gus Schumacher Nutrition Incentive Program COVID Relief and Response grants program. Agriculture Secretary Tom Vilsack states the funding "will help households in communities across the country, many hard-hit by the pandemic and the resulting economic challenges, be better equipped to purchase healthy fruits and vegetables.” USDA says the funding also enhances the resilience of food and healthcare systems impacted by the pandemic. As part of the funding, California’s Nutrition Incentive Program will receive $6.3 million to help Supplemental Nutrition Assistance Program participants purchase fresh and healthy food. And Mountain Comprehensive Health Corporation in Kentucky will receive $619,000 to provide SNAP participants extra incentives to purchase fresh produce. *********************************************************************************** Haaland, Vilsack, Announce New Pay Initiatives for Wildland Firefighters Interior Secretary Deb Haaland and Agriculture Secretary Tom Vilsack Tuesday announced the implementation of President Biden’s pay initiatives to support federal wildland firefighters. The initiatives will increase the amount paid to approximately 3,500 firefighters with the Department of the Interior and more than 11,300 firefighters at the USDA Forest Service to ensure all firefighters are paid at least $15 an hour. Secretary Vilsack states, “Supporting our brave firefighters with pay, benefits and career opportunities that reflect the importance and danger of the work that they do is critical to facing the mounting wildfire threat.” Interior currently employs roughly 5,000 wildland firefighters across the Bureau of Indian Affairs, Bureau of Land Management, Fish and Wildlife Service, and National Park Service. Approximately 3,500 of those employees will receive $7.6 million under these initiatives. The USDA Forest Service employs 14,500 wildland firefighters and, under these initiatives, more than 11,300 will receive an additional $24.3 million.
| Rural Advocate News | Wednesday August 18, 2021 |
Wednesday Watch List Markets We will have housing starts and the Federal Open Market Committee minutes out after the close. Trade will also be watching for updated Corn Belt weather forecasts and more soybean purchases by China. Weather Scattered showers will continue across the south Wednesday. Moderate to heavy rain is also moving through the eastern Midwest in association with the remnants of Fred. Hot and humid weather will continue to be the theme for the Western Corn Belt for another day while a storm that will bring relief builds in the Rockies. The heat will continue to negatively impact filling corn and soybeans where drought exists.
| Rural Advocate News | Tuesday August 17, 2021 |
USDA Updates SNAP Benefits The Department of Agriculture Monday released a re-evaluation of the Thrifty Food Plan, used to calculate Supplemental Nutrition Assistance Program, or SNAP benefits. As a result, the average SNAP benefit – excluding additional funds provided as part of pandemic relief – will increase more than 20 percent for Fiscal Year 2022. As directed by Congress in the 2018 Farm Bill, and with the expressed support of President Biden’s January 22 Executive Order – USDA conducted a review of the Thrifty Food Plan. The resulting cost adjustment is the first time the purchasing power of the plan has changed since it was first introduced in 1975, reflecting notable shifts in the food marketplace and consumers’ circumstances. The evaluation concluded that the cost of a nutritious, practical, cost-effective diet is 21 percent higher than the current Thrifty Food Plan. As a result, the average SNAP benefit, excluding additional funds provided as part of pandemic relief, will increase by $36.24 per person, per month. *********************************************************************************** Vilsack, Tai, Meet with Ag Policy Advisory Committee Agriculture Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai released a statement following a meeting with the Agricultural Policy Advisory Committee last week. Ambassador Tai detailed how the Biden-Harris Administration’s trade agenda aligns with the objectives of the agricultural sector. The Ambassador discussed how USTR is working to support the ability of U.S. agricultural producers to expand access to foreign markets and a new customer base, according to the statement. Secretary Vilsack emphasized the importance of promoting exports and finding new overseas markets, and that agricultural trade is tied to the health of rural economies. Vilsack provided an overview of priorities, including trade with China, the U.S.-Mexico-Canada Agreement implementation, and trade with the EU. The Agricultural Policy Advisory Committee is managed jointly by the Department of Agriculture and USTR. The committee includes various leaders of commodity and farm groups and agribusiness organizations, focused on ensuring U.S. trade policy and trade negotiating objectives reflect U.S. public- and private-sector interests. *********************************************************************************** Shipments of Plant-Based Proteins to Pizza Restaurants up 56 Percent Pizza has repeatedly ranked in the top foods ordered at U.S. restaurants. According to The NPD Group, in the quarter ending June 2021, there were 1.2 billion servings of pizza ordered, up four percent from the same quarter last year. Units of plant-based protein and ingredients shipped from foodservice distributors to pizza operators increased by 56 percent in the second quarter compared to a year ago, reports NPD. Research shows that about 20 percent of consumers want to increase the amount of plant-based proteins they consume, and this sentiment has held steady throughout the pandemic. Pizzas enable chefs and operators to easily customize with plant-based ingredients beginning with cauliflower crusts. Shipments of cauliflower dough and crusts to pizza operators increased by 46 percent in the quarter ending June compared to the same quarter year ago. Unit shipments of plant-based proteins to pizza operators, like Italian sausage, chicken, and imitation beef, grew by double-digits in the quarter. *********************************************************************************** Fuel Prices Ease as Oil Falls The nation’s average gas price declined 0.5 cents per gallon from a week ago to $3.17 per gallon, while the average price of diesel fell a penny in the last week and stands at $3.28 per gallon. The average gas price is unchanged from a month ago and $1.01 per gallon higher than a year ago. Gas Buddy’s Patrick De Haan states, “As the number of Covid cases continues to surge globally, oil prices continue to be under pressure due to some countries instituting travel and movement limitations,” as oil has continued to see heavy selling pressure. With the U.S. summer driving season ending and with additional high-profile companies delaying their return-to-office plans, there is some level of anxiety that fuel demand will trail off into the autumn as OPEC continues to raise oil production, leading prices to crumble. U.S. retail gasoline demand fell slightly after reaching its highest level of 2021 last week. *********************************************************************************** Farm Credit’s Commitment to Young, Beginning and Small Farmers Grew in 2020 Farm Credit institutions increased their support of young, beginning and small farmers and ranchers across the country in 2020. The Farm Credit Administration reported the increase last week. In 2020, Farm Credit made 65,800 loans to producers whose age was less than 36 years, compared to 49,100 in 2019 and 46,680 in 2018. Similarly, the dollar amount of loans outstanding to young farmers grew to $33.6 billion at yearend 2020 compared to $31 billion at yearend 2019. Over the past three years, Farm Credit made more than 160,000 loans to young agricultural producers for $33.7 billion. Meanwhile, over the past three years, Farm Credit made nearly a quarter of a million loans to ag producers with ten years or less of experience to help them get started in production agriculture. And, at the end of 2020, nearly half, 49.8 percent, of all loans outstanding in the Farm Credit System were to ag producers with less than $250,000 in farm sales. *********************************************************************************** 2022 Farmers' Almanac Released This Week The 2022 Farmers' Almanac hits store shelves this week and contains 184 pages of helpful tips, calendars, and guides to help you plan your year ahead. It also features weather forecasts for the next 16 months, plus useful advice on ways to take cues from nature to live a more sustainable lifestyle. editor Pete Geiger states, “we encourage readers to take time to head outdoors and reconnect with the environment by growing their own food, shopping locally, and using natural remedies whenever possible." But even though "farmers" is in the title, the publication reaches far beyond them. The Almanac and its readers have evolved. No longer does the Farmers' Almanac contain husbandry tips for farm animals, but it does suggest the best days to cut your hair and lawn to increase growth, quit a bad habit, grow basil, and brew beer. Learn more online at FarmersAlmanac.com
| Rural Advocate News | Tuesday August 17, 2021 |
Tuesday Watch List Markets A report on U.S. retail sales for July is due out at 7:30 a.m. CDT Tuesday, followed by July industrial production at 8:15 a.m. Traders will be watching the latest weather forecasts and considering Monday afternoon's Crop Progress numbers. Traders will also watch to see if there is a ninth consecutive soybean export sale announcement at 8 a.m. CDT. Weather Tropical Depression Fred and its eventual remnant low will bring heavy rainfall to the Southeast Tuesday. More scattered showers will be found along the southern tier of the country as well as the eastern tier. Hot and dry weather continues in the Northern Plains as a system builds into the Rockies. The region will have to wait until Thursday to see relief from the heat and dryness.
| Rural Advocate News | Monday August 16, 2021 |
Farmland Values Soar in Chicago Fed District Despite COVID-19 Strong commodity prices and continued government assistance are pushing farmland values up by 14 percent in the Central Midwest and 10 percent in the Central Plains. An Illinois farm banker surveyed by the Chicago Fed says, “Government payments have given a boost to the ag sector.” In its quarterly ag newsletter, the Chicago Fed says farmland values in the Seventh District climbed 14 percent on a year-over-year basis in the second quarter of 2021, their largest gain in eight years. Values are expected to climb even higher during the third quarter of the year because seven of every ten bankers are forecasting higher District farmland values during the July through September period this year, while 30 percent forecast stable values. The values for “good” agricultural land moved three percent higher in the second quarter, according to a survey of 152 bankers in the district. All five district states in the Chicago survey showed double-digit year-over-year gains in their agricultural land values, even though too few Michigan bankers responded to the survey to report a numerical change in farmland value. *********************************************************************************** Court Partially Upholds Iowa’s “Ag-Gag” Law A divided panel of judges partially upheld Iowa’s ‘ag-gag” law first put in place in 2012. The Des Moines Register says that decision came last week at the same time a coalition of animal rights groups filed another lawsuit challenging a follow-up law that passed in 2021. Iowa has now passed four state statutes that target animal rights activists who are working to publish videos and pictures from inside large livestock facilities, often after getting hired there as employees. The laws created criminal offenses for people who “obtain access to an agriculture production facility by false pretenses” or “makes a false statement or representation” in the course of an employment application if the person intends to commit any unauthorized actions like videotaping if they get hired. The 2012 law was the first to pass and was immediately challenged in court by several organizations, including Iowa Citizens for Community Improvement and the Animal Legal Defense Fund. Three more laws passed in Iowa after that, with the most recent one going into effect in April. The new lawsuit filed by many of the same organizations challenging the first three laws seeks to strike down the fourth law too. *********************************************************************************** Legislation Designed to Improve Livestock Assistance North Dakota Republican John Hoeven and Montana Democrat Jon Tester introduced bipartisan legislation in the Senate to improve livestock disaster assistance. The Hagstrom Report says the bill is designed to accomplish several things, including aligning coverage between the Livestock Forage Program (LFP) and Emergency Livestock Assistance Program (ELAP). It will also increase producer assistance under LFP to compensate them more accurately for feed costs, specify transportation costs for feed and water as covered losses under ELAP, and make those program improvements permanent. “Our livestock producers are facing real challenges during this drought,” Hoeven says, “Our bipartisan legislation makes common-sense improvements to the Livestock Forage and Emergency Livestock Assistance Programs to better meet the needs of those with boots on the ground.” Hoeven is the ranking member on the Senate Agriculture Appropriations Subcommittee, and Tester also serves on the Appropriations Subcommittee. They both say that ranchers are “really up against it” and are doing all they can to help them through this severe weather. Tester says, “The devastating drought has touched every corner of Montana and put a real hurt on livestock producers in our state.” *********************************************************************************** Sorghum Industry Partners with the University of California to Advance Sorghum The United Sorghum Checkoff Program is partnering with the University of California and its Division of Agriculture and Natural Resources to advance the sorghum industry. The five-year partnership will promote drought resilience in sorghum and increase demand for the cereal crop in the biofuel and bioproduct markets. While the research will be conducted in California, the results will benefit sorghum producers throughout the country. “We are excited to launch such a unique program aimed at helping address the world’s pressing water issues while at the same time increasing demand for a drought-tolerant crop like sorghum,” says Norma Ritz Johnson, USCP executive director. “The program is in perfect alignment with the Sorghum Checkoff’s goal of increasing producer profitability as drought and water scarcity is a challenge faced by most sorghum producers in the U.S.” In addition, Johnson says with the recent focus on renewable energy production, promoting a versatile crop like sorghum in biofuel and bioproduct markets is a timely endeavor. Key activities will include breeding, gene discovery, phenotyping, and research related to the impacts of roots, soil microbes, photosynthesis, and management on drought resilience. *********************************************************************************** Growth Energy Welcomes CHS as New Producer Plant Member Growth Energy, the world’s biggest ethanol trade association, announced that CHS is its newest producer plant member. The addition brings Growth Energy’s membership to a total of 91 producer plant members and 8.8 billion gallons represented out of the total U.S. annual ethanol production. CHS has been a premier ethanol marketer, trader, and producer of renewable fuels for more than forty years. They produce 260 million gallons of fuel-grade ethanol and market one billion gallons of ethanol every year, making CHS one of the nation’s largest suppliers of ethanol-enhanced gasoline and the largest U.S. retailer of E85 ethanol. Growth Energy CEO Emily Skor says they’re thrilled to welcome CHS to their growing powerhouse list of Growth Energy producer plant members. “As a whole, CHS has already contributed so much to our industry as an associate member of Growth Energy, having just announced the sale of E15 at 19 more Midwest terminals through its refining business,” Skor says. A release from CHS says, “We value working together for shared success, and we look forward to active participation in Growth Energy and its efforts to advance pro-biofuels policies and expand consumer access to higher ethanol blends.” *********************************************************************************** Corn Export Sales Jump While Wheat Sales Decline The USDA says corn sales for the 2020-2021 marketing year that ends on August 31 jumped while wheat sales declined. Sales of corn for offshore delivery totaled 377,600 metric tons in the seven days ending on August 5. That’s up noticeably from the previous week and the prior four-week average. Mexico was the big buyer at 144,500 metric tons, followed by Japan and Venezuela. The total would have been higher, but an unknown country canceled cargoes totaling 76,800 metric tons. Sales for delivery in the next marketing year totaled just shy of 602,000 metric tons. Exports for the week dropped 25 percent to 1.06 million metric tons. Wheat sales for delivery during the marketing year that began on June 1 fell to 293,000 metric tons, five percent lower week-to-week and 32 percent lower than the prior four-week average. An unknown country bought 98,600 metric tons, followed by Japan and Venezuela. Exports for the week hit a marketing-year high of 627,900 tons. Soybean sales in the current marketing year came in at 96,900 metric tons, up from the prior week and the previous four-week average. China was the top buyer at 84,500 metric tons. For the next marketing year, sales totaled 1.12 million metric tons.
| Rural Advocate News | Monday August 16, 2021 |
Monday Watch List Markets Back from the weekend, traders will be checking the latest weather forecasts and rainfall totals. USDA's weekly grain export inspections report is set for 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Spring wheat harvest progress and crop ratings will be noticed, but crop ratings tend to lose their price impact after the August WASDE report. Weather Scattered showers will continue across the southern half of the country Monday while heat builds in the Northern Plains. Tropical Storm Fred is set to make landfall in the Florida Panhandle later today, bringing heavy rainfall to southeastern states into the middle of the week. Flooding of some cotton fields that are in really good shape is possible.
| Rural Advocate News | Friday August 13, 2021 |
USDA Releases August WASDE Report The much-anticipated August World Agriculture Supply and Demand report sent crop prices slightly higher Thursday. The monthly report from the Department of Agriculture expects lower corn supplies, reduced feed and residual use, increased food, seed, and industrial use, lower exports, and smaller ending stocks. The season’s first survey-based corn yield forecast, at 174.6 bushels per acre, is 4.9 bushels below last month’s trend-based projection. The season-average corn price received by producers increased 15 cents to $5.75 per bushel. U.S. soybean supply and use changes include higher beginning stocks and lower production, crush, and exports. Soybean production is forecasted at 4.34 billion bushels, down 66 million on lower yields. The survey-based soybean yield forecast of 50.0 bushels per acre is down 0.8 bushels from last month. The season-average soybean price is $13.70 per bushel, unchanged from last month. The U.S. wheat outlook projects reduced supplies, lower domestic use, unchanged exports, and decreased ending stocks. The projected season-average farm price increased $0.10 per bushel to $6.70. *********************************************************************************** Ag Credit Survey: Strong Farm Economy Supports Ag Credit Conditions A sharp turnaround in agricultural economic conditions and lasting support from government programs is boosting farm income and loan repayment rates. Both increased from a year ago at the fastest pace on record. The Kansas City Federal Reserve Bank released its quarterly Ag Credit survey Thursday. The survey shows the improvement in farm finances eased credit issues and contributed to softer demand for farm loans. With support from a strong farm economy and historically low interest rates, farm real estate values rose ten percent from a year ago, the largest increase since 2013. The outlook for profit opportunities in 2021 remains strong for most farmers as commodity prices remained well above recent years. Conditions in the cattle industry remained somewhat weaker, however, and drought continued to hinder conditions for some farmers and ranchers. Nearly all banks in the KC Fed district reported that production expenses for crop and livestock producers increased, and cash rental rates also increased, which could pressure margins going forward. *********************************************************************************** Cattle Industry Commits to Climate Neutrality by 2040 The National Cattlemen’s Beef Association Thursday solidified U.S. cattle ranchers’ commitment to environmental, economic and social sustainability with the release of U.S. cattle industry sustainability goals. The goals call for demonstrating climate neutrality of U.S. cattle production by 2040. NCBA past president Marty Smith says, “By setting goals, we’re publicly committing to continuous improvement and setting targets that allow us to measure and document those efforts.” The goals also seek to create and enhance opportunities that result in a quantifiable increase in producer profitability and economic sustainability by 2025, and enhance trust in cattle producers as responsible stewards of their animals and resources by expanding educational opportunities in animal care and handling programs to further improve animal well-being. The goals are the culmination of a grassroots, rancher-led process through the Sustainability Goals Task Force formed this year. The task force evaluated the current state of U.S. beef cattle sustainability, and determined which improvements are most critical. *********************************************************************************** R-CALF Issues Rebuke on Call for Regional Cash Market Minimums A document sent to the Senate Agriculture Committee from R-CALF calls for mandating large packing plants to purchase at least 50 percent of their cattle needs from negotiated cash cattle markets. Announced Thursday, R-CALF USA says the white paper provides real-time evidence that varying minimum cash cattle purchase requirements region-to-region will allow major beef packers to continue denying timely market access to independent cattle feeders. The document is titled, “Why a 50 percent National Negotiated Cash Volume Is Needed and Why That Volume Should Not Vary Region by Region.” The group’s paper provides the example of at least one Iowa cash cattle seller who was informed that one major packer was out of the market for five weeks and another was reducing Iowa cash cattle purchases. By mandating that all large packing plants purchase at least 50 percent of their cattle needs from negotiated cash cattle markets, the group says Congress can ensure that independent cattle producers located everywhere have access to a competitive market. *********************************************************************************** European Commission Delays Certificate Regulation, Protecting U.S. Dairy Exports The European Commission this week decided to extend the implementation deadline for its new health certificate requirements to January 15, 2022. The International Dairy Foods Association says the announcement backs off on threats to shut down U.S. dairy exports to EU member states as well as transshipments of U.S. dairy products through the European Union. IDFA and U.S. officials considered the certificate requirements—requiring animal health monitoring and veterinarian sign-off, among other requirements—to be burdensome and in conflict with international standards set by the World Organization for Animal Health. IDFA says the EC's extension provides U.S. and European officials with enough time to complete their discussions and determine appropriate implementation procedures for U.S. exports. IDFA President and CEO Michael Dykes states, “We are grateful for the support and intervention of the Biden Administration to resolve this matter and hope the U.S. government will continue working with IDFA to help U.S. dairy gain access to the EU market.” *********************************************************************************** Food Prices Increase Again in July Food prices rose again in July, according to the latest Consumer Price Index. The food index increased 0.7 percent in July as five of the major grocery store food group indexes rose, and the food away from home index increased 0.8 percent. The index for food at home also rose 0.7 percent, as the index for meats, poultry, fish, and eggs continued to increase. The index for cereals and bakery products, which declined in June, rose 1.2 percent in July, its largest one-month increase since April 2020. The index for other food at home rose 0.8 percent in July, also the largest monthly increase since April 2020. The index for nonalcoholic beverages rose 0.7 percent in July, and the index for dairy and related products advanced 0.6 percent. The index for fruits and vegetables was the only major grocery store food group index to fall in July, declining 0.9 percent after rising 0.7 percent in June. The index for fresh fruits fell 1.8 percent over the month.
| Rural Advocate News | Friday August 13, 2021 |
Friday Watch List Markets The University of Michigan consumer sentiment index is due out at 9 a.m. CDT and is the only significant report scheduled for Friday the 13th. Traders will continue to watch over the latest forecasts and digest Thursday's new estimates from USDA. Traders will also watch at 8 a.m. CDT to see if USDA announces a seventh consecutive export sale for new-crop soybeans. Weather An active frontal boundary from the Central Plains through the southern Midwest will remain active as it pushes south Friday. Moderate to heavy rainfall will be possible along the front in these areas while it continues to dry out farther north.
| Rural Advocate News | Thursday August 12, 2021 |
CattleFax Forecasts Record Beef Demand; Prospects for Tighter Supplies The beef cattle industry is bouncing back from the pandemic, and continued progress is expected in 2022. Beef prices are near record high, and consumer and wholesale beef demand are both at 30-year highs as the U.S. and global economy recover. While drought remains a significant concern, strong demand, combined with higher cattle prices, signal an optimistic future for the beef industry, according to CattleFax. The popular CattleFax Outlook Seminar, held as part of the 2021 Cattle Industry Convention and NCBA Trade Show in Nashville, shared expert market and weather analysis Wednesday. According to CattleFax CEO Randy Blach, the cattle market is still dealing with a burdensome supply of market-ready fed cattle. The influence of that supply will diminish as three years of herd liquidation will reduce feedyard placements. As this occurs, the value of calves, feeder cattle and fed cattle will increase several hundred dollars per head over the next few years. *********************************************************************************** Senate Confirms Moffitt for USDA Post The U.S. Senate Wednesday confirmed the nomination of Jenny Moffitt as Agriculture Department undersecretary for marketing and regulatory programs. Senate Agriculture Committee Chair Debbie Stabenow of Michigan says, “Moffitt brings a wealth of experience and a unique perspective as both a farmer and a policy maker.” The Senate Agriculture Committee held a hearing on Moffitt’s nomination on July 15, 2021, and voted to advance her out of the committee with bipartisan support. President Biden nominated Moffitt for the position in April. She most recently served as undersecretary at the California Department of Food and Agriculture and previously served as deputy secretary for the agency. Ranking Senate Ag member John Boozman of Arkansas adds he believes Moffitt “will work in good faith to carry out the regulatory authorities for which she will be responsible in a manner that is consistent with congressional intent.” Moffitt will oversee USDA’s Agricultural Marketing Service Agency and the Animal and Plant Health Inspection Service Agency. *********************************************************************************** USDA Invests $167 Million in High-Speed Broadband in 12 States Agriculture Secretary Tom Vilsack Wednesday announced the Department of Agriculture is investing $167 million in 12 states to deploy broadband infrastructure. The investment focuses on rural areas without sufficient access to high-speed internet. Secretary Vilsack says broadband “is necessary for Americans to do their jobs, to participate equally in school learning and health care, and to stay connected.” The investments will benefit rural people in Alaska, Arizona, Colorado, Georgia, Missouri, North Dakota, Oklahoma, South Carolina, Tennessee, Texas, Utah and Virginia. As part of the investment, Central Virginia Services Inc. will use a $14.1 million grant to deploy a fiber network in rural Virginia, and the Altamaha Electric Membership Corporation in Lyons, Georgia, will use a $10.6 million loan and a $10.6 million grant to deploy a fiber network in rural Georgia. USDA’s ReConnect Program provides the loans and grants to construct, improve or acquire facilities and equipment needed to provide broadband service in eligible rural areas. *********************************************************************************** U.S. Ag Tractor Sales Hold Steady in July, Gain in Canada Gains in larger and four-wheel-drive tractors offset smaller declines in the sub-40 horsepower range in the U.S., while Canadian farm tractor sales were positive in July. The Association of Equipment Manufacturers says U.S. total farm tractor sales fell 0.8 percent in July compared to 2020, while U.S. combine sales jumped 19.2 percent. The articulated four-wheel drive segment led the way for the third straight month by climbing 79.4 percent. Year-to-date farm tractor sales remain up 13.7 percent and combines up 12.6 percent. AEM’s Curt Blades states, “The story of these row-crop and articulated four-wheel-drive sales is a reflection of farmer optimism,” adding “farmers don’t make these sorts of investments without serious consideration of future market conditions.” For Canada, July monthly tractor and combine sales were positive across all segments, with the biggest growth in four-wheel-drive units nearly doubling, up 93.8 percent, while total farm tractor sales were up 14.8 percent and combines up 59.8 percent. *********************************************************************************** Lawmakers Introduce Ocean Shipping Reform Act House lawmakers this week Introduced the Ocean Shipping Reform Act of 2021. The bipartisan legislation is the first major update of federal regulations for the global ocean shipping industry since 1998. The legislation would support American exports by establishing reciprocal trade opportunities to help reduce the United States’ longstanding trade imbalance with China and other countries. South Dakota Republican Dusty Johnson and California Democrat John Garamendi introduced the legislation. The Congressmen serve together on the House Committee on Transportation and Infrastructure and announced their intention to pursue the legislation during a Subcommittee hearing on June 15, 2021. The bill seeks to establish reciprocal trade to promote U.S. exports as part of the Federal Maritime Commission’s mission and require ocean carriers to adhere to minimum service standards that meet the public interest, reflecting best practices in the global shipping industry, among other measures. The bill has large agriculture and transportation industry support. *********************************************************************************** Canadian Pacific Submits New Bid for Kansas City Southern Canadian Pacific Railway this week re-upped its offer to acquire Kansas City Southern in a stock and cash trade worth approximately $31 billion. The move comes as KCS shareholders are voting to approve a merger/transaction with Canadian National. Canadian Pacific claims their new offer is an alternate transaction recognizing the premium value of KCS while providing more regulatory certainty. The proposed transaction values KCS at $300 per share. Following the closing into a voting trust, common shareholders of KCS will receive 2.8 CP common shares and $90 in cash for each share of KCS common stock held. Canadian National, however, maintains its agreement is superior, under which KCS shareholders will receive $325 per common share, which implies a total enterprise value of $33.6 billion. However, there are many concerns regulators will not approve the KCS-CN agreement. Canadian Pacific says the two offers are substantially similar but claims their proposal offers significantly higher regulatory certainty.
| Rural Advocate News | Thursday August 12, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, along with U.S. jobless claims, the producer price index for July and an update of the U.S. Drought Monitor. The U.S. Energy Department's natural gas inventory report is due out at 9:30 a.m. At 11 a.m., USDA's WASDE and Crop Production reports for August will be released with new U.S. crop estimates featured. Weather A frontal boundary will remain active across the southern Midwest with continued showers and thunderstorms. Some storms could be severe, but not to the extent we have seen the last couple of days. Hot and humid weather is found south of this front, which is stressing crops in some of the locally drier areas in the Central and Southern Plains and Delta.
| Rural Advocate News | Wednesday August 11, 2021 |
Ag Reacts to Senate Passage of Infrastructure Bill The U.S. Senate passed the bipartisan infrastructure package that contains several important investments for agriculture. Several U.S. agricultural groups reacted positively to the news. “This is a once-in-a-lifetime investment in America’s infrastructure, and we are extremely pleased that it includes funding for priorities that are important to farmers and rural America,” says John Linder, President of the National Corn Growers Association. American Farm Bureau President Zippy Duvall says, “We appreciate the Senate for working together to pass the Infrastructure Investment and Jobs Act. The pressing infrastructure issues facing our nation are too important to ignore, particularly in rural communities where modernization is desperately needed.” Farm Credit Council President and CEO Todd Van Hoose says the investments in rural broadband will connect more communities. “The agriculture transport network will benefit from improved rural roadways and bridges, freight rail, inland waterways, and port facilities,” Van Hoose says. The National Cattlemen’s Beef Association says the package is “a step in the right direction.” Among the key items in the bill are $17.3 billion for the nation’s ports and inland waterways. The legislation earmarks $65 billion for broadband internet access, including $2 billion specifically set aside for rural broadband. *********************************************************************************** IA, MN Senators Push for Pandemic Relief for Swine Producers Senators Chuck Grassley and Joni Ernst, both Iowa Republicans, and Minnesota Democrat Amy Klobuchar sent a letter to Ag Secretary Tom Vilsack regarding assistance for swine producers. They want the USDA to make sure that swine producers and contract swine growers are eligible for the assistance Congress secured for them. The bipartisan push comes after the Biden administration didn’t mention assistance for pork producers during the Pandemic Assistance for Producers June or July announcements regarding the Pandemic Livestock Indemnity Program. “We’re concerned that USDA’s announcement on June 15 that described its intent to finalize this program within 60 days only focused on poultry growers and made no mention of providing assistance to contract swine growers,” the senators said in their letter. “Additionally, many pork producers have been waiting for USDA to roll out the Coronavirus Food Assistance Program swine top-up payments that were announced in January of this year.” Late last year, Congress passed a bipartisan COVID relief package that included assistance to contract livestock and poultry producers, as well as to agricultural producers, growers, processors, specialty crops, non-specialty crops, dairy, livestock, and poultry. On January 15, USDA announced Coronavirus Food Assistance Program 1 top-up payments for swine producers with approved CFAP 1 applications. *********************************************************************************** Cattle Industry Convention Underway in Nashville This Week The biggest annual beef industry gathering began on Tuesday in Nashville, Tennessee, where more than 6,000 people got together for the 2021 Cattle Industry Convention and NCBA Trade Show. Those in attendance include cattle producers, industry partners, and other industry stakeholders. “I’m pleased that cattlemen and women can come together in person once again,” says National Cattlemen’s Beef Association President Jerry Bohn. “Producers from across the country and their families look forward to the convention every year, but I think it means more following the disruptions brought on by COVID-19.” Convention participants will gain insights on market trends during the CattleFax Outlook Seminar, hear a “state of the industry” update from NCBA, learn about the cattle industry’s role in sustainability, and walk through the NCBA Trade Show that contains more than 350 exhibitors on seven acres. The NCBA, Cattlemen’s Beef Board, American National Cattlewomen, CattleFax, and the National Cattlemen’s Foundation will all hold annual meetings. Two general sessions will include a panel discussion on sustainability and a speech from former NFL player Jason Brown, who left football for a career in agriculture. *********************************************************************************** GROWMARK and Indigo Combine to Expand Access to Carbon Markets GROWMARK, a farmer-owned cooperative, and Indigo Ag have announced a joint effort to spur participation in the growing market for agricultural carbon. The companies say because of this collaboration, GROWMARK SYSTEM’s network of retailers will help farmers navigate an increasingly complex soil carbon market and confidently get started on carbon farming through the only high-quality, third-party verified credit program in operation, called “Carbon by Indigo.” GROWMARK and Indigo will provide farmer-owners with the end-to-end support necessary to succeed in the agricultural carbon opportunity. Participating retailers will help farmers evaluate and enroll in “Carbon by Indigo” and implement beneficial farming practices proven to sequester carbon and abate greenhouse gas emissions. Indigo will leverage its capabilities for measuring and verifying on-farm environmental impact at scale to translate the effects of farmers’ efforts into a new source of revenue in the form of carbon credits. “The opportunity for farmers to benefit from public demand for high-quality carbon credits is tremendous,” says Mark Orr, Vice President of Agronomy with GROWMARK. “We’re proud to work with Indigo to provide our farmer partners with a simple and informed path to generate maximum revenue for their efforts.” *********************************************************************************** Grassley Wants Review of Cargill/Continental Grain Acquisition of Sanderson Farms Iowa Senator Chuck Grassley sent a letter to the Justice Department’s Antitrust Division regarding the acquisition of Sanderson Farms by Cargill and Continental Grain Company. Grassley, the top Republican on the Judiciary Committee, is asking the Justice Department to thoroughly examine the proposed acquisition and to consult with the USDA on its effect on the poultry industry. “At the closing of the transaction, Cargill and Continental Grain will combine Sanderson Farms, the third-largest poultry producer in the U.S., with Wayne Farms, currently a subsidiary of Continental Grain, to form a new poultry business,” Grassley says in the letter addressed to Richard Powers, Acting Assistant Attorney General. “According to industry analysts, a combined Cargill-Continental Grain-Sanderson Farms would control approximately 15 percent of the U.S. chicken market.” Grassley also says he’s concerned that continued mergers and acquisitions in an already concentrated poultry industry will increase consolidation, frustrate competition, reduce marketing options, and ultimately raise consumer prices. “I urge the Antitrust Division to thoroughly examine this proposed acquisition to preserve a competitive market in the U.S. poultry industry,” Grassley says. “I also urge the division to seek input from the USDA in its analysis of the proposed transaction and its impact on the poultry market.” *********************************************************************************** NBB Celebrates RFS Anniversary Last weekend marked the 16th anniversary of the Renewable Fuel Standard, a policy that’s played a big role in decarbonizing America’s diesel fuel supply. On the heels of the anniversary, National Biodiesel Board CEO Donnell (Duh-NELL) Rehagen noted the sustainable growth of the biodiesel industry under the RFS and urged policymakers to continue supporting future growth. “The RFS has been crucial to growing the advanced biofuel industry, and it will remain essential for future decarbonization efforts around the country,” Rehagen says. “The RFS supported the sustainable growth of a three-billion-gallon market for biodiesel and renewable diesel that has cut 143.8 million metric tons of carbon emissions over the past decade. We can’t afford to lose ground now.” He also says the policy should support the continued growth of advanced biofuels as the industry strives to reach six billion gallons by 2030. The RFS drives the development of advanced biofuels that reduce carbon emissions from some of the hardest economic sectors to decarbonize.
| Rural Advocate News | Wednesday August 11, 2021 |
Wednesday Watch List Markets Wednesday's reports begin with the Labor Department's consumer price index for July, due out at 7:30 a.m. CDT and will add to the ongoing conversation about inflation. The U.S. Energy Department's weekly inventory report is due out at 9:30 a.m. and will include ethanol production. The U.S. Treasury's budget for July will be announced at 1 p.m. Weather After an active severe weather day in the Midwest on Tuesday, another active day is expected Wednesday with the greatest probabilities centered around Lake Michigan. Another frontal boundary moving into the Midwest will be the culprit. Hot and humid weather will continue south of this front through much of the Midwest and Plains down to the Gulf of Mexico. Meanwhile, cooler and drier air behind the front will ease stress for filling corn and soybeans.
| Rural Advocate News | Tuesday August 10, 2021 |
Ag, Biofuel, Call for DOE Analysis of Sustainable Aviation fuel Tax Credits Biofuel and agriculture groups call on lawmakers to provide an accountable life cycle analysis for sustainable aviation fuel tax credits. In an effort to decarbonize transportation and reduce aviation emissions, Congress is considering new legislation to establish a tax credit to promote and develop robust domestic sustainable aviation fuel production. The groups say in a letter to the Senate Finance Committee and the House Ways and Means Committee, “We urge you to make the Department of Energy the lead agency in establishing a regularly updated Life Cycle Analysis for any sustainable aviation fuel credit.” The letter was signed by Growth Energy, the American Farm Bureau Federation, National Biodiesel Board, National Corn Growers Association, National Farmers Union, and the Renewable Fuels Association. The letter also pointed out that carbon intensity estimates under the International Civil Aviation Organization for some sustainable aviation fuel sources are “wildly inaccurate and incorrectly penalized” and cannot be supported. *********************************************************************************** Vilsack, Tai, to Meet with USDA Ag Policy Committee Agriculture Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai will meet with the Agricultural Policy Advisory Committee Friday. The committee, managed by the Department of Agriculture and the U.S. Trade Representative’s office, offers advice on U.S. trade policy. Topics include current and new trade deals, trade agreement implementation and concerns within the agreements. The committee consists of six technical advisory boards, including animals, fruits and vegetables, grains, processed foods, sweeteners and a final group focused on tobacco, cotton and peanuts. Committee members represent U.S. food and agriculture groups and major agribusinesses, including the American Farm Bureau Federation, National Corn Growers Association and the National Cattlemen’s Beef Association, along with Corteva, ADM, and others. The advisory committee system was created by the U.S. Congress in 1974 to ensure that U.S. trade policy and trade negotiating objectives adequately reflect U.S. public- and private-sector interests. USDA’s Foreign Agricultural Service provides administrative and other necessary support for the Committee. *********************************************************************************** Cargill and Continental Grain Purchasing Sanderson Farms Cargill and the Continental Grain Company Monday announced a joint-venture agreement to acquire Sanderson Farms, the third-largest poultry producer in the United States. The all-cash purchase totals $4.53 billion, or $203 per share, a 30.3 percent premium to Sanderson Farms’ share price of $155.74 on June 18, 2021. Cargill and Continental Grain will combine Sanderson Farms with Wayne Farms, a subsidiary of Continental Grain, to form a new, privately held poultry business. In a statement, Cargill says the combination of Sanderson Farms and Wayne Farms will create a “best-in-class U.S. poultry company with a high-quality asset base, complementary operating cultures, and an industry-leading management team and workforce.” Chairman and CEO of Cargill David MacLennan says, “Expanding our poultry offerings to the U.S. is a key enabler of our ability to meet customer and consumer demands.” Operations will include poultry processing plants and prepared foods plants across Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina, and Texas. *********************************************************************************** Pro Farmer Crop Tour Next Week Pro Farmer scouts will fan out across the Corn Belt to measure this year's corn and soybean yield potential during the 29th annual Pro Farmer Crop Tour next week, August 15-19. The tour is an August ritual covering seven Midwestern states and capturing the attention of the industry and national media. Observations and results will be shared nightly at in-person events and live-streamed online. Pro Farmer Editor and Eastern Tour Director Brian Grete says, “Crop tour will give us a first-hand look at whether the good areas are enough to compensate for the poorer locations.” The event is the most thorough and most followed inspection of yield potential during a critical time in the growing season. A summary of findings from the tour will be presented nightly at 7 p.m. central time, through a live-streamed broadcast hosted by Clinton Griffiths, Tyne Morgan, Chip Flory and Brian Grete. Free registration is required and available at www.ProFarmer.com/register. *********************************************************************************** U.S. Beef and Pork Exports on Record Pace through June U.S. red meat exports closed the first half of the year on a strong note, according to the U.S. Meat Export Federation. Although volume and value eased from April and May, export value was still the highest on record for the month of June, and first-half shipments established a record pace for both beef and pork. June beef exports totaled 112,200 metric tons, up 42 percent from a year ago when exports were still hampered by COVID-19 disruptions. Export value was $804.4 million, up 68 percent from a year ago and the third-highest on record. First-half exports reached over 700,000 metric tons, up 18 percent from a year ago. Pork exports reached 238,000 metric tons in June, up 15 percent from a year ago, while export value climbed 35 percent to $696.8 million. First-half pork exports topped last year's record pace by one percent at 1.58 million metric tons, valued at $4.33 billion. *********************************************************************************** AEM President Dennis J. Slater to Retire The Association of Equipment Manufacturers President Dennis Slater will retire at the end of the year, the organization announced late last week. The AEM Board of Directors has selected AEM’s Construction and Utility Sector Senior Vice President Megan Tanel to succeed Slater and serve as AEM President effective January 2022. Slater, 63, joined AEM’s predecessor, the Construction Industry Manufacturers Association in 1982, becoming president of CIMA in 1998 and president of the newly formed AEM in 2002, after a merger between CIMA and Equipment Manufacturers Institute. AEM Chair Chairman Steve Berglund says, “Through Dennis’ leadership and impressive contributions to the industry for nearly 40 years, AEM has built tremendous value and momentum for our members and the industry.” Tanel, 48, joined AEM in 1995 as an intern, becoming a full-time employee later that year. She quickly grew in leadership to her most recent position of Senior Vice President, Construction & Utility Sector.
| Rural Advocate News | Tuesday August 10, 2021 |
Tuesday Watch List Markets Reports on U.S. productivity and unit labor costs are due out at 7:30 a.m. CDT and are the only official reports of the day. Traders will continue to watch the latest weather forecasts, any news of export sales and prepare for Thursday's WASDE report. Weather A frontal boundary moving into the Midwest is expected to produce scattered showers and thunderstorms, some possibly strong to severe. Showers will likely develop across the Central Plains as well. Outside of any severe weather, the rainfall will be good if it happens upon the northwest portions of the Midwest, which are still drier and could use the rainfall for filling corn and soybeans.
| Rural Advocate News | Monday August 9, 2021 |
Farm Bureau Supports Infrastructure Legislation The American Farm Bureau sent a letter to all 100 U.S. Senators expressing its support for the Infrastructure Investment and Jobs Act. Farm Bureau President Zippy Duvall says modernizing the country’s transportation infrastructure continues to be a priority for their members. “That’s why we are supporting this bipartisan legislation,” Duvall says. “The investments in our nation’s roads, bridges, ports, and inland waterways are not just necessary, but they are long overdue.” He also says this legislation provides critical investments that will expand broadband internet access and repair and upgrade aging western water infrastructure that is, in many cases, 50 to 100 years old and not adequate to meet today’s needs. “Our nation’s infrastructure gives America’s farmers and ranchers a competitive advantage and helps us move products from fields to consumers around the world,” he adds. “These investments will ensure we continue to safely and efficiently transport the agricultural and food products that our nation and world rely on.” Duvall is also grateful that the senators didn’t place the burden of these investments on American farmers and ranchers through increased tax rates or by eliminating the stepped-up basis. “We encourage the Senate to pass this investment in America’s future,” Duvall says. ********************************************************************************************** More Groups Say CAFÉ Standards Must Include Biofuels The Environmental Protection Agency and the Department of Transportation proposed greenhouse gas standards to decarbonize light-duty vehicles. Those vehicles will include passenger cars, SUVs, and pickup trucks. The proposed rule would require automakers to meet more stringent fuel efficiency standards. Growth Energy CEO Emily Skor says for the proposed CAFÉ standards to effectively address climate change, the rule needs to include a pathway to increase the use of low-carbon, sustainable biofuels like ethanol into the nation’s fuel supply. “We will be providing the Biden Administration a pathway forward that allows biofuels like ethanol to help us meet our climate goals,” Skor says. “Liquid fuels will continue to play an important role in the transportation sector, even as alternative technologies continue to flourish.” National Farmers Union President Rob Larew points out that the transportation sector is the single largest contributor to greenhouse gas emissions. “That makes it the central focus in climate mitigation efforts,” he says. “That’s why NFU is advocating for the use of high octane, low carbon fuels, including higher-level blends of ethanol.” *********************************************************************************************** Groups Want Biden to Restart Trade Talks with China Some of the most influential business groups in America want the White House to restart trade talks with China. The New York Times says they also want tariffs cut on goods imported from China. Those duties have been in place since the beginning of a trade war between the two nations. The groups represent diverse business interests, including potato farmers, microchip companies, and pharmaceuticals. In a letter to the Biden administration, they’re asking the president to work with the Chinese government to make sure it carries out commitments made in the Phase One Trade Agreement that China signed with the Trump Administration. The letter was addressed to the Treasury Department and the U.S. Trade Representative, and it comes as the relationship between the two largest economies in the world remains contentious. The administration is more than seven months into a review of the Phase One Trade Deal, as well as other national security measures put into place by the Trump Administration. Officials haven’t yet announced the results of the review. The January 2020 agreement between the U.S. and China kept U.S. tariffs on $360 billion worth of Chinese imports in place. Some provisions of the deal expire at the end of this year, but much of the agreement will stay in effect. ********************************************************************************************** Coffee Prices Continue to Climb Due to Frost, Shipping Costs Coffee prices are on the way up. Top coffee producer Brazil was hit hard by frost, and the record cost of freight brought on by COVID-19 causing massive shipping logjams will push prices to multi-year highs in the weeks to come. The worst cold snap in Brazil since 1994 sent the price of green coffee beans to the highest level in almost seven years. That increase will pass through the chain to consumers when they buy roasted beans or ground coffee in their local grocery stores. Reuters says crops in Brazil are wilting after the worst dry spell the country has seen in almost a century. The extent of the damage isn’t fully known yet, but in areas where coffee trees didn’t survive, it may take as many as seven years for production to fully rebound. The shipping problems are partly brought on by demand for consumer goods and not enough available ships as people stayed home during COVID. That’s led to a sharp rise in the cost of transporting beans to the major coffee-consuming countries in North America and Europe. Data from the Bureau of Labor Statistics shows the average ground coffee prices rose to a peak of $4.75 per pound in April, 8.1 percent higher than last year and the highest level since 2015. ********************************************************************************************** Groups Call for Climate-Smart Investments, Including Broadband The National Milk Producers Federation and the National Council of Farmer Cooperatives led a coalition of 12 agricultural and conservation organizations in a letter on investments. They’re advocating for significant new funding for climate-smart agricultural practices that can help farmers to build on their environmental stewardship leadership. The groups say much more can be done to enhance practices that can yield meaningful environmental benefits, such as climate-smart manure and feed management on dairy farms. “Bolstering conservation investment and focusing on climate-smart practices better positions dairy farmers to fulfill the dairy sector’s 2050 environmental stewardship goals as envisioned in the Net Zero Initiative,” says NMPF CEO Jim Mulhern. In addition to increased spending on conservation incentives, the organizations also support new rural broadband resources in pending infrastructure legislation. The letter also brings up the major concerns that many of its signers have already voiced regarding several proposed changes to tax policy that would undermine the transfer of family farms from one generation to the next. Other organizations signing on to the letter include the Ag Retailers Association, the American Seed Trade Association, the National Association of Conservation Districts, and many others. *********************************************************************************************** Land O’ Lakes Mid-Year Earnings Are Up Land O’ Lakes Incorporated reports year-to-date net sales totaling $8 billion, with net earnings of $236 million. That’s a year-over-year increase of nine percent in net sales. Dairy Reporter says during the same period a year ago, the company reported net sales of $7.3 billion and net earnings of $118 million. For the second quarter ending on June 30, 2021, the company reported net sales of $4 billion and net earnings of $100 million. That’s a 14 percent year-over-year net sales increase and a 22 percent increase in net earnings. Net sales growth reflects strength in crop inputs and animal nutrition and higher pricing across the portfolio to offset rising input and supply chain costs. “We are pleased that we’ve been able to maintain the strength and accelerate the momentum of last year’s performance,” says Land O’ Lakes CEO Beth Ford. “Despite increasing costs, the fundamentals of our industry remain favorable, and our differentiated approach has delivered a sustained performance in all business segments through the first half of the year.“ Ford also says the company recognizes that the third quarter could be the toughest year-over-year comparison in their historically smallest quarter. Earnings for the quarter were driven by strong performance in crop inputs with higher volumes and favorable product mix in crop protection and improved margins in crop nutrients.
| Rural Advocate News | Monday August 9, 2021 |
Monday Watch List Markets Fresh back from the weekend, traders will be checking rainfall amounts and the latest weather forecasts. USDA's weekly grain export inspections report is due out at 10 a.m. CDT, followed by the Crop Progress report at 3:00 p.m. Good to excellent crop ratings likely showed further deterioration for corn and soybeans in the latest week. Weather A system in the Midwest is weakening but will continue bring showers and thunderstorms east of the Mississippi River on Monday. Another storm in the Northern Plains and Canadian Prairies will bring scattered showers as well. In the U.S. the focus will be on North Dakota. Rainfall over the past few days has been beneficial for many of the drier areas of the Corn Belt, but there were some that have been missed. Monday gives those areas another shot.
| Rural Advocate News | Friday August 6, 2021 |
USDA Launching Market News Reports based on Livestock Mandatory Reporting The Department of Agriculture Thursday announced two new USDA Market News Reports based on Livestock Mandatory Reporting data. The reports will provide additional insight into formula cattle trades and help promote fair and competitive markets, and stems from a recent executive order on competition. USDA will release the first new report, the National Daily Direct Formula Base Cattle, this coming Monday, and the second report, the National Weekly Cattle Net Price Distribution, this coming Tuesday. The National Daily Direct Formula Base Cattle reports will enable producers to see the correlation between the negotiated trade and reported formula base prices. The weekly and monthly formula base reports will be both national and regional in scope and include forward contract base purchase information. The National Weekly Cattle Net Price Distribution report will show at what levels, price and volume, trade occurred across the weekly weighted average price for each purchase type – negotiated, negotiated grid, formula and forward contract. *********************************************************************************** Farm, Biofuels Groups: Biofuels Can Help Reach 2030 Zero-emission Vehicle Goals The White House Thursday announced an executive order that sets a new target to make half of all new vehicles sold by 2030 zero-emission vehicles. According to a White House fact sheet, the order also kicks off development of long-term fuel efficiency and emissions standards to save consumers money, cut pollution, boost public health, advance environmental justice, and tackle the climate crisis. However, the effort lacks links to biofuels. Rural Voices USA Board President Chris Gibbs states, "The path ahead will also require a commitment to biofuels as an essential way to reduce emissions and support rural economies." The organization encourages President Joe Biden to renew his commitment to biofuels and upholding the Renewable Fuel Standard. Meanwhile, Renewable Fuels Association President and CEO Geoff Cooper says, “The overarching goal should be to reach net-zero emissions as quickly as possible without dictating the pathway to get there or putting all our eggs into one technology basket.” *********************************************************************************** Legislation Seeks to Block California Prop 12 Lawmakers Thursday introduced the Exposing Agricultural Trade Suppression, or EATS Act, to prohibit states and local governments from interfering with agriculture products from other states. Specifically, the bill seeks to block California’s Proposition 12, which would require meat products raised outside of the state to conform to the animal rights standards adopted by California. The Republican Group of Senators introducing the bill features Iowa’s Chuck Grassley and Joni Erst, Roger Marshall of Kansas and John Cornyn of Texas. Grassley claims, “I don’t know why anyone would want to live in a state where it’s almost impossible to buy bacon, but California wants to impose such a rule on its residents.” The EATS Act will also challenge states from interfering in interstate commerce. However, state and local government units will still be able to regulate farming and ranching within their own state. More than 20 states challenged California’s Proposition 12, and others have adopted similar laws. *********************************************************************************** Farm Credit: Infrastructure Package to Improve Rural America The Farm Credit Council says the Infrastructure Investment and Jobs Act will help improve rural America, bringing infrastructure improvements and jobs. Farm Credit President and CEO Todd Van Hoose Thursday stated, “We commend the bipartisan group of 22 Senators and President Biden for their tremendous effort to forge agreement on this critical legislation.” The legislation will bring support for rural broadband and rural water systems. The bill also will strengthen agriculture transport networks by improving rural roadways and bridges, freight rail, inland waterways, and port facilities. Van Hoose says these investments will create jobs in rural communities, make U.S. agriculture more competitive in global markets, and make rural communities “more vital places to live and work.” As for broadband, the bill features more than $40 billion in funding to improve rural broadband access. The bill is on track to pass and could pass the Senate before lawmakers adjourn for the upcoming August recess. *********************************************************************************** Study Shows How Corn and Soybean Producers Benefit from U.S. Red Meat Exports U.S. beef and pork exports brought critical returns to the corn and soybean industries in 2020, according to an independent study released by the U.S. Meat Export Federation. The study found U.S. beef and pork exports added 41 cents per bushel to the value of corn and $1.06 per bushel to soybeans in 2020. Corn and soybean producers support the international promotion of U.S. pork, beef and lamb by investing a portion of their checkoff dollars in market development efforts conducted by USMEF. The study shows U.S. pork exports used 2.45 million tons of soybean meal, which is the equivalent of 103.2 million bushels of soybeans. At an average annual price of $8.98 per bushel, pork exports accounted for $927 million in market value to the soybean industry. Beef and pork exports used 530.5 million bushels of corn. At an average annual price of $3.52 per bushel, beef and pork exports accounted for $1.87 billion in market value to the corn industry. *********************************************************************************** Alex Miller to Perform at #Farmon Benefit Concert for National FFA Farm Journal announced this week that American Idol contestant and rising country music star Alex Miller will perform as part of the 2021 #FarmON Benefit Concert during Farm Journal Field Days. Proceeds from the second annual benefit concert will go to the National FFA Foundation, and highlights from the concert will air RFD-TV. Miller grew up in Lancaster, Kentucky, assisting his grandpa on his cattle farm as well as being an active member of the Garrard County FFA. Farm Journal president Charlene Finck says, “We are honored to have an extremely talented and current FFA member as one of our featured performers.” The live concert is set for Thursday, August 26, in Colby, Kansas, and is available only to VIPs and those who register for the in-person Farm Journal Field Days event the following day. For more information about the #FarmON Benefit Concert and Farm Journal Field Days, go to www.FarmJournalFieldDays.com.
| Rural Advocate News | Friday August 6, 2021 |
Friday Watch List Markets The U.S. Labor Department will have reports on nonfarm payrolls and U.S. unemployment in July at 7:30 a.m. CDT Friday. A report on consumer credit in June follows at 2 p.m. CDT. Traders will keep a close watch on rainfall amounts this weekend and any changes in the weather forecasts. Outside markets remain sensitive to the latest news on the coronavirus delta variant. Weather Some scattered showers will be found along a disturbance across the western Midwest Friday and across the Northern Plains Friday night. It is this second system that should garner attention as the weather pattern will become active into next week with several chances for rainfall across the northwestern Corn Belt, areas that desperately need it as corn and soybeans fill.
| Rural Advocate News | Thursday August 5, 2021 |
USTR Tai Meeting with Western Farmers U.S. Trade Representative Katherine Tai meets today (Thursday) with farmers and ranchers in the Pacific Northwest. Tai and U.S. Representative Suzan DelBene, a Washington state Democrat, will tour the Washington State University Breadlab and participate in a roundtable with agriculture and farm stakeholders. The USTR office says the roundtable in Burlington, Washington, will discuss how trade can help Washington’s agriculture and farm industries. A second roundtable planned later in the day in Seattle will focus on a worker-centered trade policy. Tai visited with farmers in Wisconsin last month. The Biden administration has yet to name a Chief Agriculture Negotiator, and Tai has largely discussed ag issues with trading partners herself. Lawmakers asked for a nomination during a congressional hearing last week, and earlier in July, sent a letter to President Joe Biden. The lawmakers wrote, "A Chief Agricultural Negotiator would help expand our agricultural trade and enhance the agricultural economy of our country." *********************************************************************************** American Bakers Association Seeks RFS Rollback U.S. bread and donut makers want the Biden administration to roll back biofuels targets, claiming the Renewable Fuel Standard could raise the cost of their products. The American Bakers Association confirmed to Reuters association leaders met with the Environmental Protection Agency last week, requesting reduced biofuel blending mandates. Of particular interest to the industry is soy and canola oil, used for biofuels and food ingredients. The association seeks biofuel targets at a level last seen in 2019, or no new growth in mandates. EPA is again delayed in releasing new biofuel volume requirements for the upcoming year. Roughly 40 percent of U.S. soy oil goes to biofuels, with the rest for food ingredients. In response, National Biodiesel Board Vice President Kurt Kovarik told Reuters, "Undercutting the Renewable Fuel Standard is not a solution,” citing trade wars, pandemic disruptions, and adverse weather impacts to agriculture. The American Bakers Association represents companies such as Kroger, Krispy Kreme, and others. *********************************************************************************** Union Raises Concerns Over Tyson Vaccine Mandate A meatpacking union representing 24,000 Tyson Foods workers is concerned over the new Tyson vaccine mandate. United Food and Commercial Workers International President Marc Perrone says, “While we support and encourage workers getting vaccinated against the COVID-19 virus…it is concerning that Tyson is implementing this mandate before the FDA has fully approved the vaccine." The union urged all frontline businesses to negotiate vaccine policies directly with their frontline workers and provide paid vaccine leave so that workers can get vaccinated without worrying about losing a paycheck. Tyson provides a $200 bonus for workers to get vaccinated and up to four hours of pay for getting vaccinated outside of work or through an external provider. Roughly 56,000 of Tyson‘s 120,000 employees are vaccinated. Office workers face a deadline of October 1 to be vaccinated fully, while plant employees have until November 1. Since February, Tyson Foods has hosted more than 100 vaccination events for employees. *********************************************************************************** Grassley, Smith Introduce Healthy Dog Importation Act Senators Chuck Grassley and Tina Smith Wednesday introduced the Healthy Dog Importation Act. The Iowa Republican and Minnesota Democrat say the bill would expand USDA’s Animal and Plant Health Inspection Services program by providing additional tools to monitor and safeguard the health of dogs imported into the country. Grassley states the bill “will expand an already existing program to ensure that all dogs entering the country are healthy and not at risk of spreading dangerous diseases.” Smith adds, “Mitigating the spread of foreign diseases in dogs will help keep domestic and wild animals healthy.” In addition, the legislation would require every imported dog to have a certificate of veterinary inspection from a licensed veterinarian. The health certificate must certify that the dog has received all required vaccinations and demonstrated negative test results. This legislation would also create an online database containing documentation and import permits to ensure dogs entering the U.S. are being properly screened. *********************************************************************************** Study: U.S. Pork Industry Needs More Access to Foreign-Born Workforce A new study says the U.S. pork industry needs access to more foreign-born labor to remain sustainable. The study, authored by Iowa State University economists, was recently updated to reflect the current state of the labor market. The National Pork Producers Council says the study underscores the urgent need for agriculture labor reform. NPPC President Jen Sorenson says, "The U.S. pork industry has a critical labor shortage that needs to be urgently addressed." According to the study, from 2001-2020, employment in the U.S. pork industry grew by an annual rate of 1.5 percent, four times faster than employment growth in all U.S. industries. Despite expanded wages and jobs, the U.S. pork industry faces a significant domestic labor shortage due to a dwindling and aging rural labor population where hog farms and harvest facilities are located. From 2014-2019, the rural labor force shrank in five of the eight top pork-producing states, according to the study. *********************************************************************************** USDA Extends Beef Checkoff Petition Drive Deadline Agriculture Secretary Tom Vilsack this week granted an extension to organizers of the National Beef Checkoff Petition Drive until October 3, 2021. The extension grants extra time for organizers to collect the necessary signatures on the petition calling for a producer vote of the National Beef Checkoff Program. The South Dakota Livestock Auction Markets Association and Kansas-based Stratford Angus organized and initiated a petition drive that began July 2, 2020. The Department of Agriculture originally established a 12-month period for the collection of the required 88,269 signatures. R-CALF USA and other groups have helped collect signatures but due to COVID-19-related restrictions, were unable to meet with cattle producers for several months in locations such as livestock auction yards and public meeting places. As a result, the organizers and assisting groups were relying upon an online petition site to collect signatures. That site, located at www.checkoffvote.com, currently has 18,790 signed petitions.
| Rural Advocate News | Thursday August 5, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, along with weekly U.S. jobless claims, U.S. trade deficit data for June and an update of the U.S. Drought Monitor. The U.S. Energy Department releases its weekly natural gas inventory report at 9:30 a.m. and USDA will release export data for June some time Thursday morning. Weather Scattered showers across Minnesota and Iowa on Thursday could turn stronger in the afternoon as a weak front moves through the region. Other more isolated showers will be found across the Southeast and Northwest. Showers in the Northwest are too late to benefit the wheat crop.
| Rural Advocate News | Wednesday August 4, 2021 |
Ag Economy Barometer Holds Steady The Purdue University/CME Group Ag Economy Barometer leveled off after two months of sharp declines. The July reading is 134, down only three points from June. Both producers’ sentiment regarding current and future conditions also dropped. The Index of Current Conditions dropped six points to a reading of 143, primarily due to weaker crop prices. The Index of Future Expectations dropped two points to 130. This month’s sentiment index marked the lowest barometer reading since July of 2020. Producer sentiment regarding their farms’ financial condition was more optimistic when prices for corn, soybeans, and wheat were surging last fall, winter, and into the early spring. Still, recent sentiment readings suggest farmers remain cautiously optimistic about financial conditions on their farms. The Farm Financial Performance Index, which asks producers about expectations for their farms’ financial performance this year compared to last year, improved three points to a reading of 99. That’s 43 percent higher than July of 2020. The Farm Capital Investment Index declined for the fourth consecutive month, dropping four points to a reading of 50 as farmers plan to reduce their farm building and grain bin purchases for the upcoming year. Over half the producers indicated they expected a rise in the price of inputs by at least four percent during the year ahead. ********************************************************************************************** Barchart Raises U.S. Crop Forecasts on Higher Yields, Cuts Canadian Wheat Prediction Barchart released its August 2021 Yield and Production forecasts for U.S. crops. “Our forecasts for U.S. field crop production have been revised higher on the back of increased yield expectations for both corn and soybeans and are now broadly in line with USDA’s most recent predictions,” says Keith Peterson of Barchart. The U.S. corn forecast is 15 billion bushels on a yield of 180.3 bushels per acre. That’s compared to USDA’s 15.1 billion bushels of production and 179.5 bushels per acre. Barchart predicts U.S. soybean production will be 4.4 billion bushels on a yield of 51 bushels per acre. This compares to USDA’s forecast of 4.48 billion bushels and 50.8 bushels per acre. The company predicts the U.S. Hard Red Winter Wheat yield will be 45.5 bushels per acre, compared to USDA’s yield forecast of 53.6 bushels per acre, including all winter wheat varieties. “We’ve cut our Canadian production forecasts for both soybeans and wheat, with the Spring Wheat forecast down almost 10 percent from July,” Petersen says. “This comes on the back of severe drought conditions across the Canadian prairies.” Their Canadian wheat forecast is for 816 million bushels, and the soybean forecast is for 225.2 million bushels, with a yield of 42.6 bushels per acre. ********************************************************************************************** EU/U.S. Plan to End Steel Tariffs Good News for Agriculture The U.S. and the European Union plan to settle the dispute about longstanding steel and aluminum tariffs by November 1. Capital Press says it’s good news for America’s steel industry, and that indirectly is good news for agriculture. Conversations about Section 232 of the Trade Expansion Act relating to steel and aluminum tariffs have been moving forward, and an EU trade official told Politico that,” Both sides have confirmed readiness to find a solution by November 1.” The original agreement deadline was December 31. If the agreement leads to a limitation on the volume of EU steel coming into the U.S. market, that could impact American agricultural manufacturers and farmers. Because of duties on imported steel under the Trump and Biden administrations, U.S. steel prices in 2021 are at record highs. That’s good for American steel manufacturers but difficult for agricultural equipment manufacturers and farmers. What happens in the fall conversations could influence the price of steel, although any decision will only be binding on the U.S. and EU, not China or any of the other major steel exporters around the world. ********************************************************************************************** Senate Subcommittee Approves FY22 Bill with Disaster Aid The Senate Ag Appropriations Committee approved a $25.85 billion fiscal-year 2022 bill for the Agriculture Department and related agencies, including $7 billion in disaster aid. Subcommittee Chair Tammy Baldwin of Wisconsin says the bipartisan legislation is a product of Democrats and Republicans working together to support a stronger and more resilient ag economy that works for farmers, ranchers, and families in rural communities. “This bipartisan legislation will drive economic opportunities to farmers and invest in the long-term health of our working lands,” Baldwin says. “It will also invest in broadband and ensure that people facing challenging times have tools to move towards nutrition, health, and housing security.” The bill also includes investments to support the Dairy Business Innovation Program, Grazing Lands Conservation Initiative, and research priorities for dairy, specialty crops, and organic farmers. The fiscal year 2022 appropriation bill includes $2.5 billion more than the 2020 funding levels. The full Senate Appropriations Committee will take up the legislation on Wednesday. The disaster assistance funds will help producers who suffered losses due to drought, hurricanes, wildfires, floods, and other qualifying disasters during 2020 and 2021. *********************************************************************************************** Competitive Meat Market Bill Introduced in House, Senate Legislation to create tax incentives supporting small and mid-sized meat processing plants was introduced by Republicans in the House and Senate. The Hagstrom Report says the goal of the bill is to help cattle producers compete for better prices. A news release says the Feed America by Incentivizing Rural Meat Packing (FAIR) Act says that the bill will make sure the nation’s cattle producers get a level playing field and fair prices for their products, as well as lower prices for consumers in their local grocery stores. “The success of the Kansas economy relies heavily on the cattle industry at every step from pasture to plate,” says Kansas Senator Roger Marshall. “We must ensure robust competition at the packing level by providing butcher shops and medium-sized packers more opportunity for success.” Missouri Representative Jason Smith says, “Our cattlemen are some of the hardest working people in the country and deserve access to fair markets. Unfortunately, if the mega meatpackers continue their stranglehold on the market, our hardworking producers don’t stand a chance.” South Dakota Representative Dusty Johnson says, “There’s no silver bullet, but several reforms continue to move us in the right direction. The FAIR Meat Packing Act is one of those reforms.” *********************************************************************************************** FFA Chapters Sharing Ag Education with Local Elementaries FFA Chapters in states across the country are sharing the story of agriculture with their local elementary students. The National FFA Organization teamed up with Zoetis, the Indiana State Fair, and the LEAP Foundation for an agricultural literacy project that introduced swine production to students. “As a long-time supporter of the National FFA Organization, Zoetis (Zoe-EH-tis) is a proud sponsor of ‘There’s a Pig in my Classroom,’” says Shari Westerfeld, Vice President for U.S. Pork. “This program provides FFA members with a great opportunity to interact with young students, exposing them to FFA and educating them on how pigs are cared for and where pork products come from.” The project allows students to share information on swine production with others and culminates with a virtual field trip to the Fair Oaks Farm Pig Adventure. The FFA Organization says this partnership is an opportunity for their members to introduce agriculture to a younger generation. They hope that members can engage students in telling the agriculture story to others and inspire a future generation of leaders. Students from 20 states ranging from California to West Virginia are involved in the project. The FFA Chapters will teach two pre-lessons, assist with the virtual field trip, and teach one post-lesson.
| Rural Advocate News | Wednesday August 4, 2021 |
Wednesday Watch List Markets At 7:15 a.m. CDT Wednesday, the private firm, ADP, reports on private sector job growth for July, a possible hint for Friday's unemployment report. The U.S. Energy Department has its weekly energy inventory report at 9:30 a.m., including ethanol production. Traders will continue to examine the latest weather forecasts and any export sales news that develops. Weather Isolated showers will be found with a weak disturbance moving through the Central and Northern Plains on Wednesday. Scattered showers will also be noted near the Gulf Coast and Southeast throughout the day as well. Temperatures will continue on a slight rising trend but are still mild east of the Mississippi River.
| Rural Advocate News | Tuesday August 3, 2021 |
EPA and Army Corps Announce Next Steps on Writing “WOTUS” The Environmental Protection Agency and the Army announced plans for community engagements to let people know about their efforts to revise the definition of “WOTUS,” or the Waters of the U.S rule. The goal of the rewrite is to better ensure clean and safe water for everyone. The EPA and the Army say they are committed to developing a reasonable, effective, and durable definition of WOTUS that protects public health, the environment, and downstream communities while supporting economic opportunity, agriculture, and other industries. “We will craft an enduring definition of WOTUS by listening to all sides so that we can build on an inclusive foundation,” says EPA Administrator Michael Regan. “Uncertainty over the definition of WOTUS has harmed our waters and the stakeholders and communities that rely on them. I look forward to engaging all parties as we move forward to provide the certainty that’s needed to protect our national resources.” The agencies will revise the WOTUS definition by following a process that includes two rulemakings. “It’s vital that farmers and rural Americans have a seat at the table and a voice in this process so that the rule responds to concerns and realities on the ground,” says Ag Secretary Tom Vilsack. “All stakeholders should share their experiences and views to help shape future policy.” ********************************************************************************************** NCBA Pleased with Southern Border Legislation Late last week, Texas Republican Representative August Pfluger (FLOO-ger) introduced the bipartisan RAPID Act. “RAPID” stands for Reimbursing Agriculture Producers for Immigration Damages. Other members of the Texas Congressional delegation signed on to the bill to help create a reimbursement program for producers that incur losses caused by illegal border crossings. Under the bill, producers could be reimbursed for livestock losses, damage to fences or physical structures, or property losses, all of which currently occur at the border due to those crossing the border illegally. The National Cattlemen’s Beef Association is grateful to the lawmakers who are supporting policies that protect cattle farmers and ranchers that are simply trying to raise not only their livestock but their families on the land. “Texas ranchers are facing significant hardships amid a flood of illegal border crossings and must continually fix cut fences and damaged infrastructure,” says Hughes Abell, president of the Texas & Southwestern Cattle Raisers Association. “As stewards of large sections of the Southern Border, ranchers suffer a disproportionate share of the burden associated with illegal border crossings,” says Ethan Lane, NCBA VP of Government Affairs. “Not only do the crossings damage property and livestock, but they also endanger ranchers and their families.” ********************************************************************************************** NBB Campaigns for Commitment to Renewable Fuel Standard The National Biodiesel Board launched an ad campaign calling on President Biden to maintain his commitment to the Renewable Fuel Standard. The ads will air on more than 200 radio stations. “As a candidate last August, Joe Biden called the Renewable Fuel Standard ‘our bond with our farmers and our commitment to a thriving rural economy.’ But now there are reports he’s considering handouts to oil refiners at the expense of biodiesel producers and soybean farmers,” the ad says. “Contact your member of Congress and let them know that it’s time for the president to make good on his promise to support Midwest farmers and biodiesel producers.” Kurt Kovarik, NBB Vice President for Federal Affairs, says, “The Renewable Fuel Standard is a vital policy for the biodiesel industry and soybean producers. Instability in the program creates economic uncertainty for the communities where biodiesel production generates jobs and economic growth.” As members of Congress return to their home states this summer, Kovarik wants them to hear the message and encourage the president to maintain his commitment to the RFS program and our rural communities. The U.S. biodiesel and renewable diesel industry support 65,000 jobs and more than $17 billion in economic activity every year. ********************************************************************************************** Groups Petition to Relist Gray Wolf as Endangered Species Last week, a coalition of 70 groups filed a formal petition with the U.S. Fish and Wildlife Service to re-list the gray wolf on the Endangered Species Act. The gray wolf has been protected under the Act since 1978, and since then, wolf populations have risen in several states, including California, Illinois, Minnesota, and many others. On January fourth of this year, the Fish and Wildlife Service announced that the gray wolf had recovered to the point that it was no longer an endangered species. That means management of wolf populations would return to the states. The Sierra Nevada Daily says the petition calls for the Fish and Wildlife Service to protect wolves in the Western U.S. as a “Distinct Population Segment.” The groups say that wolves remain completely absent from suitable habitats or perilously close to extinction in many western states, and the handful of states surrounding Yellowstone National Park are now driving the larger populations toward extinction. The petitioners also point out that, “The American West has vast tracts of public lands that offer the ideal habitat for gray wolves. To return the wolf and restore the balance of nature, it is necessary to apply federal protections that supersede anti-wolf state politics that push wolf populations toward extinction rather than recovery.” *********************************************************************************************** Brazil Corn Crop Yield Hits Ten-Year Low Poor weather caused second-corn crop yields in south-central Brazil to drop to the lowest level in ten years. Reuters says after drought and frost combined to spoil much of the crop, Brazilian farmers are now expecting to harvest 51.6 million tons, almost 19 million tons below the 70.5 million they brought in during the last harvest. “Failure of the 2021 corn crop, planted with much delay due to the later soybean harvest, was the result of the lack of rain in most of the producing areas in April and May,” says Brazilian agribusiness consultancy AgRural. “The frost starting at the end of June and lasting until now reduced yields and also caused quality problems.” The spoiled second-corn crop hurt Brazil’s export prospects and increased the need for corn imports. The cold and damp weather over the previous weeks also limited farmers’ harvesting pace, with growers collecting just 46 percent of their corn in south-central Brazil through last Thursday, below the 61 percent they’d harvested at the same point in 2020. Second corn is planted after soybeans are harvested and is the country’s main corn crop. It accounts for approximately 70-75 percent of all production in a given year. *********************************************************************************************** CHS Expanding E15 Availability CHS Incorporated is expanding access to higher ethanol blends by offering E15 at 19 additional terminals beginning this month. CHS is registered with the Environmental Protection Agency as an E15 manufacturer and sells E15 as an approved fuel-grade through its many retail locations. CHS will offer E15 at terminal locations ranging from Minnesota to Nebraska, North Dakota to Iowa, as well as in Missouri. “As the nation’s leading farmer-owned cooperative, expanding options for ethanol-blended fuel is important for our Cenex brand retailers and our farmer-owners,” CHS says in a release. “We have always been committed to offering ethanol-blended flexible fuels through our network of 1,450 Cenex brand retail facilities.” The company continues to demonstrate that commitment by working with its terminal partners to offer higher ethanol blends in a broader geography across its retail network. To make E15 more accessible, CHS removed barriers for its Cenex brand retail locations by establishing an EPA-approved misfuelling mitigation plan, becoming the only E15 refiner to do so, and establishing E15 as a qualifying grade of fuel.
| Rural Advocate News | Tuesday August 3, 2021 |
Tuesday Watch List Markets U.S. factory orders are due out at 9 a.m. CDT Tuesday and there are no other official reports on the docket. Traders will continue to keep a close watch on the latest weather forecasts and on any export news that emerges. Weather Scattered showers will continue across the Gulf Coast and into the Southeast on Tuesday. A weak disturbance will move into the far northwestern Plains with some isolated showers as well. Other areas will remain dry and a couple of degrees warmer than Monday.
| Rural Advocate News | Monday August 2, 2021 |
New Indictments in Broiler Chicken Conspiracy Koch (Coke) Foods, Incorporated, and four Pilgrim’s Pride Corporation executives were charged for their role in an alleged broiler chicken price-fixing scheme. The indictment is the latest action in an ongoing investigation by the Department of Justice. DTN says in February, Pilgrim’s Pride admitted to its role in a 2012 conspiracy to fix the price of broiler chickens. The company will pay $107.9 million as a part of its plea agreement in federal court. The new indictment alleges the defendants worked together to suppress and eliminate competition for sales of broiler chicken products. Those chickens are raised for human consumption and sold to restaurants and grocery stores. The four executives and Koch Foods have been charged with violating the Sherman Antitrust Act. The four Pilgrim’s Pride executives will make their initial appearance in court on August 11. Violating the act results in a maximum penalty of 10 years in prison and a one million dollar fine for individuals, as well as a $100 million fine for corporations. The indictment says the conspiracy goes back to 2012 and uses repeated text messages among the four men that discussed bids and prices for poultry contacts or overall market prices as the basis for the allegations. Those messages allegedly continued through 2017. ********************************************************************************************** Dominican Republic Enlists Military to Fight ASF The Dominican Republic is limiting shipments of pigs and mobilizing its military to contain the spread of African Swine Fever. Reuters says the Dominican ag ministry made the announcement as the U.S. and Mexico tightened border checks to avoid spreading the infection. The U.S. and Mexico are both boosting airport inspections to stop travelers from bringing in Dominican pork products that could carry the virus. Both countries had previously blocked pork imports from the Dominican Republic. U.S. testing of almost 400 samples from Dominican-raised hogs from farms and backyards shows that the disease is in a small population of backyard pigs in two provinces, which together contain almost 20,000 pigs. The total Dominican herd numbers 1.8 million. The ag ministry is prohibiting live and slaughtered pig movement from those provinces, noting that there will be “total military control in all strategic points of both provinces,” and the ministry will help disinfect affected areas. The disease originated in Africa before it spread to Asia and Europe, killing hundreds of millions of pigs and reshaping global meat and feed markets. ********************************************************************************************** Federal Court Rejects NPPC Challenge to Prop 12 in California The Ninth Circuit Court of Appeals turned down the National Pork Producers Council and American Farm Bureau’s petition to strike down Proposition 12 as unconstitutional under the Commerce Clause. “We are disappointed in the court’s decision and stand by our position on Proposition 12,” says NPPC spokesman Jim Monroe. “It’s a clear violation of the U.S. Constitution’s Commerce Clause. We are evaluating the decision and our next steps.” The court said for dormant Commerce Clause purposes, laws that increase compliance costs, without more, do not constitute a significant burden on interstate commerce. The court’s decision was 3-0. The court also says the complaint against California “fails to make a plausible allegation that the pork industry is of such national concern that it is analogous to taxation or interstate travel, where uniform rules are crucial.” Pork Business Dot Com says Prop 12 will go into effect on January 1, 2022, and will impose animal housing standards that reach far outside the state’s borders to farms across the country. NPPC says that will drive up costs for both pork producers and consumers. NPPC President Jen Sorenson says, “After everything producers have faced in recent years, now farmers are faced with a federal district court decision that will result in a 2.5 percent loss of national pork harvest capacity.” *********************************************************************************************** Senators Introduce Legislation to Uphold Navigable Waters Protection Rule Republican Senators on the Senate Environment and Public Works Committee led the introduction of legislation to codify the 2020 Navigable Waters Protection Act. U.S. farmers need certainty in the guidelines, so the Navigable Waters Protection Act of 2021 will provide it. Iowa Senator Chuck Grassley was one of the senators behind the legislation. “I’ve worked over the years to put a stop to water rules that would be unworkable for farmers, real estate developers, and landowners,” Grassley says. “Our farmers and businesses are good stewards of the land, and we need to have a real law on the books so Americans can move forward without burdensome regulations.” Grassley and fellow Iowa Senator Joni Ernst wrote a letter to Ag Secretary Tom Vilsack to express concerns over the Biden Administration’s decision to roll back the previous administration’s Navigable Waters Protection Rule. He also gave a speech on the Senate floor highlighting the devastating effects if the rule gets rolled back. Earlier this year, the Iowa senators joined together on a Senate resolution that expressed the need for the Senate to stand with farmers, ranchers, and other important stakeholders by supporting the Navigable Waters Protection Rule. *********************************************************************************************** NIFA and NSF Investing $220 Million in Artificial Intelligence Research The USDA’s National Institute of Food and Agriculture and the National Science Federation announced a $220 million investment in 11 new NSF-led Artificial Intelligence Research Institutes. NIFA and other agencies and organizations have partnered with the NSF to pursue transformational advances in a range of economic sectors and science and engineering fields, ranging from food system security to next-generation edge networks. “These investments in new institutes leverage the scientific power of U.S. land-grant universities in close partnerships with farmers, producers, educators, and innovators to provide sustainable crop production solutions and address these pressing societal challenges,” says NIFA Director Carrie Castille. “These centers will speed our ability to meet critical needs in the future agriculture workforce, providing equitable and fair market access, increasing nutrition security, and providing tools for climate-smart agriculture.” Washington State University is one of the 11 institutions to receive funding and will work to integrate AI methods into agriculture operations for prediction, decision support, and robotics-enabled agriculture to address complex challenges. They’ll look to deliver solutions related to labor, water, weather, and climate change. *********************************************************************************************** Minnesota Farmer Elected New Chair of USGC Delegates at the U.S. Grains Council’s Summer Meeting elected Minnesota farmer Chad Willis as chairman of its Board of Directors. Willis represents the Minnesota Corn Research and Promotion Council on the board and says he was drawn to the Council because he needs dependable markets to sustain his operation. “As I’ve served the Council and as I’ve been able to see firsthand by traveling to other countries, it’s a two-way street,” he said in opening remarks. “We need each other.” Willis also added that as the organization recognizes the importance of their grain markets, USGC must continue to build on the value-added markets for DDGS and ethanol. “The value of global trade has so much potential if we work together to access them,” he adds. Willis has been farming since 1997 and has worked in both the corn milling and feed industries. He was a member of the Minnesota Corn Research and Promotion Council before serving on its board. Brent Boydston of Bayer Crop Science was elected the Council’s Secretary-Treasurer. Joshua Miller of the Indiana Corn Marketing Council is the Vice-Chairman.
| Rural Advocate News | Monday August 2, 2021 |
Monday Watch List Markets Back from the weekend, traders will be examining rainfall amounts and the latest weather forecasts. The Institute of Supply Management's index of U.S. manufacturing is due out at 9 a.m. CDT Monday, followed by USDA's weekly grain export inspections at 10 a.m. USDA's Fats and Oils report will show the June soybean crush at 2 p.m., shortly before USDA posts the latest crop ratings in the Crop Progress report at 3 p.m. CDT. Weather A cold front will remain active across the South with scattered showers from Texas to the Carolinas. The rest of the primary growing areas will be mild and dry with some heat developing in the Northern Plains and Canadian Prairies. Conditions continue to favor corn and soybeans in the southeast growing areas with unfavorable dryness in the northwest.
| Rural Advocate News | Friday July 30, 2021 |
House Ag Leaders Urge House Vote on Broadband Bill Leaders of the House Agriculture Committee Thursday called for a full-House vote on a bipartisan rural broadband bill. Chairman David Scott and Ranking Member Glenn GT Thompson requested that Speaker Nancy Pelosi and Republican leadership bring the Broadband Internet Connections for Rural America Act to the House Floor for a vote. The bill provides USDA with an authorization of $43.2 billion, which received a unanimous committee vote on July 14, 2021. In a letter to House leadership, Scott and Thompson jointly say, “We write today to ask you for your assistance for a floor vote on our bipartisan legislation.” The lawmakers say it is vitally important that USDA, with its unique expertise, experience, and 159-year history serving rural America, provide the leading role in the nation’s rural broadband strategy. Overall, the investments provide opportunities for rural communities to invest in the health and well-being of their communities, incentivize business growth, and expand economic opportunities. *********************************************************************************** Dominican Republic Confirmed Positive for African Swine Fever The Department of Agriculture announced this week that the Dominican Republic has confirmed cases of African swine fever. The cases were confirmed as part of a cooperative surveillance program between the United States and the Dominican Republic. The United States remains free of ASF, an animal disease affecting only pigs with no human health implications, and imports no pork, animal feed or other pork-related products from the Dominican Republic. While the finding is concerning, National Pork Producers Council chief veterinarian Liz Wagstrom states, “The United States has significantly bolstered biosecurity to protect the U.S. swine herd since ASF broke in China nearly three years ago.” NPPC urges producers use caution when hosting on-farm visitors from an ASF-positive region, review biosecurity protocols and visit with feed suppliers to discuss the origin of feed ingredients. Additionally, NPPC encourages producers to fill out the Foreign Animal Disease Preparation Checklist and enroll in the Secure Pork Supply program. *********************************************************************************** USDA Announces $67 Million to Help Resolve Land Ownership and Succession Issues Agriculture Secretary Tom Vilsack Thursday announced $67 million in competitive loans through the new Heirs' Property Relending Program. The program aims to help producers and landowners resolve heirs' land ownership and succession issues. Intermediary lenders, cooperatives, credit unions, and nonprofit organizations, can apply for loans up to $5 million at one percent interest once the Farm Service Agency opens the two-month signup window in late August. After FSA selects lenders, heirs can apply directly to those lenders for loans and assistance. Heirs' property issues have long been a barrier for producers and landowners to access USDA programs and services. The relending program provides access to capital to help producers find a resolution. Heirs may use the loans to resolve title issues by financing the purchase or consolidation of property interests and financing costs associated with a succession plan. Heirs may not use loans for any land improvement, development purpose, or payment of operating costs. *********************************************************************************** Midwest Lawmakers Urge Biden to Consider Biofuels in Environment Agenda A group of Midwestern Senators urge the Biden administration to consider biofuels like ethanol as part of its environmental agenda. The climate focus by the administration includes a push towards electric vehicles. The lawmakers tell the administration in a letter,” Unfortunately, the promise of homegrown biofuels and our agriculture sector appear to be woefully underrepresented in your administration’s energy, environmental, and transportation agenda.” The group requested a meeting with President Joe Biden and cabinet members to discuss immediate and intermediate steps the administration can take to feature American agriculture and biofuels as part of the energy and environmental agenda. The lawmakers say recent studies have found corn ethanol to have 46 percent lower lifecycle emissions than gasoline. The letter also asks the administration to rigorously implement the Renewable Fuel Standard. Senate Republicans John Thune, Chuck Grassley, Roy Blunt, Jerry Moran, Deb Fischer, Mike Rounds, Joni Ernst, Ben Sasse and Roger Marshall signed the letter. *********************************************************************************** USDA Releases Economic Impact Analysis of the U.S. Biobased Products Industry The Department of Agriculture Thursday unveiled an Economic Impact Analysis of the U.S. Biobased Products Industry. The report demonstrates that the biobased industry is a substantial generator of economic activity and jobs, and that it has a significant positive impact on the environment. According to the report, in 2017, the biobased products industry supported 4.6 million jobs, contributed $470 billion to the U.S. economy and generated 2.79 jobs in other sectors of the economy for every biobased job. Additionally, biobased products displace approximately 9.4 million barrels of oil annually, and have the potential to reduce greenhouse gas emissions by an estimated 12.7 million metric tons of CO2 equivalents per year. USDA deputy undersecretary for Rural Development Justin Maxson announced the report on the 10th anniversary of the creation of USDA’s Certified Biobased Product Label. Maxson says, “Biobased products are widely known for having a substantially lower impact on the environment compared to petroleum-based and other non-biobased products.” *********************************************************************************** USDA: 2021 Food Prices Rise Slower Than 2020 Retail food prices have increased 1.6 percent in the first six months of 2021, less than the rate over the same period last year. The Department of Agriculture’s Economic Research Service says the 2021 increase is equal to the historical average over the same six months from 2000 to 2019. In the first six months of 2021, prices for five food categories increased at a rate slower than in 2020 and years prior, including eggs, dairy, fresh vegetables, cereals and bakery products, and "other foods." Conversely, prices for three food categories increased in the first six months of 2021 at a rate faster than in 2020 and in years prior, including fresh fruits, fish and seafood, and fats and oils. Inflationary pressures differ by food category, according to USDA. For example, fresh fruit prices currently are increasing more than four times faster than their historical average rate because of low citrus supplies and increased exports.
| Rural Advocate News | Friday July 30, 2021 |
Washington Insider: African Swine Fever Closer to Home Europe and Asia are the areas in the world where African swine fever (ASF) has been the most prevalent. But USDA has now confirmed that ASF has been found in the Dominican Republic. USDA's Foreign Animal Disease Diagnostic Laboratory confirmed ASF in samples from pigs in the Dominican Republic via a cooperative surveillance program, USDA announced. Dominican Republic officials said that testing of 389 samples from farm-raised and backyard pigs was conducted, and ASF was found in a "small population of backyard pigs from Sanchez Ramirez and Montecristi provinces." According to the Animal and Plant Health Inspection Service (APHIS), pork and pork products are already banned from entering the U.S. due to restrictions linked to classical swine fever, and the Department of Homeland Security's Customs and Border Protection (CBP) is "increasing inspections of flights from the Dominican Republic to ensure travelers do not bring prohibited products" into the U.S. APHIS also said that CBP will also be "ensuring that garbage from these airplanes are properly disposed of to prevent the transmission of ASF." USDA said it has offered additional testing support and will consult with the country on any additional steps of actions to "support response and mitigation measures." USDA has offered similar help to Haiti that shares a border with the Dominican Republic and has a "high risk" for ASF. The Dominican Republic said they were halting pig movements in two provinces and are mobilizing the military as they seek to contain ASF. The two provinces where the finds were will be quarantined, the government said. There are about 1.8 million hogs in the Dominican Republic, with 15,000 in the Sanchez Ramirez province and another 4,600 in the Montecristi province. This is not the country's first find of ASF as the World Animal Health Organization (OIE) said that a 1978 outbreak resulted in the country killing its entire hog herd. Mexico has also acted as a result of the situation, announcing they will work with pork producers in the country to make sure that sanitary measures are up to snuff and that there is "epidemiological surveillance" due to the find. Actions including reinforcing animal inspections at all ports, airports and border crossings, the country's Ag Ministry said, and kitchen and waste on commercial ships, cruise ships and airplanes will be returned to its origin country or the ministry ensures it is properly destroyed. The U.S. stepped up its efforts when ASF appeared in Asia. USDA is working closely with other federal and state agencies, the swine industry, and producers to take the necessary actions to protect our nation's pigs and keep this disease out. So we will see. One has to believe that if the U.S. avoided getting this in 1978 when it previously struck the Dominican Republic, ideally new and updates surveillance efforts should keep the U.S. even more protected. But this remains a very important situation to watch, Washington Insider believes.
| Rural Advocate News | Friday July 30, 2021 |
Jacobs-Young Nominated as USDA Undersecretary. President Joe Biden on Wednesday announced his intention to nominate Chavonda Jacobs-Young as USDA undersecretary for research, education and economics. Jacobs-Young is administrator of the USDA Agricultural Research Service and serves as acting undersecretary for research, education and economics and acting USDA chief scientist. She would be the first woman and person of color to lead this division of USDA, which manages an annual budget of $1.82 billion, the White House said. The role of USDA undersecretary for trade and foreign agriculture is still open along with the chief ag negotiator spot at the Office of the U.S. Trade Representative.
| Rural Advocate News | Friday July 30, 2021 |
US List of Facilities Eligible to Export to China Expands USDA's Food Safety and Inspection Service has released an updated list of slaughter, processing or cold storage establishments that are eligible to export product to China. Under the Phase One agreement with China, FSIS certifies establishments to the General Administration of China Customs (GACC) and those facilities must be listed on the GACC website before slaughtering and processing products for export to China. A notification on the GACC site said that six U.S. facilities were added to the list of those eligible. Information from FSIS indicates that on July 26 and 27, a total of eight facilities were added to the approved list for beef, seven were added for pork, and six were added for poultry. There have been 37 poultry plants added in 2021, bringing the total to 529; 31 have been added in 2021 for pork for a total of 508; and 34 added this year for beef bringing the total to 547.
| Rural Advocate News | Friday July 30, 2021 |
Friday Watch List Markets The Labor Department issues its Employment Cost Index and a report on U.S. personal incomes for June is also due out at 7:30 a.m. CDT Friday. The University of Michigan's index of consumer sentiment for July is set for 9 a.m. CDT. Traders will continue to examine the latest weather forecasts and any hint of export sales news. Weather A system building off a frontal boundary in Nebraska and South Dakota will produce moderate to heavy rainfall from South Dakota southeast through northern Missouri on Friday. This includes the eastern half of Nebraska and western half of Iowa with good rainfall amounts for reproductive corn and soybeans.
| Rural Advocate News | Thursday July 29, 2021 |
House Agriculture Hearing Echoes NCBA Push for More Hook Space The National Cattlemen's Beef Association says a House Agriculture Subcommittee hearing Wednesday echoed the organization's longstanding call to expand processing capacity. The Livestock and Foreign Agriculture Subcommittee hearing on the State of the Beef Supply Chain, examined shocks in the supply chain. Subcommittee Chairman Jim Costa says the shocks have "impacted millions of people along the entire supply chain.” Members of the committee also noted the need for greater transparency in cattle markets to create conditions that support both a reliable, affordable supply of U.S. beef. NCBA Vice President of Government Affairs Ethan Lane states, “The continued momentum we are seeing on expanding processing capacity, both on Capitol Hill and at USDA, is a positive sign.” Cattle industry concerns have seen increased attention recently from both sides of the aisle as NCBA has advocated for “commonsense solutions” that address the most urgent challenges facing producers, including legislation to help small and independent processors expand capacity. *********************************************************************************** Toomey, Shaheen Reintroduce Bill to Overhaul U.S. Sugar Program Lawmakers this week in the House and Senate introduced the Fair Sugar Policy Act of 2021 to reform the federal sugar support program. Republican Senator Pat Toomey and Democrat Jeanne Shaheen introduced the bill in the Senate. In the House, North Carolina Republican Virginia Foxx, and Democrat Danny Davis introduced the bill. The lawmakers say the federal sugar support program currently costs consumers and businesses as much as $4 billion per year. Specifically, the legislation would lift restrictions on the domestic supply of refined sugar. The bill would also reduce taxpayer liability for sugar processor loan forfeitures and ensure that the impact on consumers, manufacturers and farmers is taken into account when the USDA administers the sugar program. Finally, the bill would reduce market distortions caused by sugar import quotas. Toomey states, “It is long past time we reform this corporate welfare program that jacks up food prices while threatening thousands of good-paying jobs.” *********************************************************************************** USDA Extends Crop Insurance Deadlines USDA’s Risk Management Agency this week authorized Approved Insurance Providers to extend deadlines for producers. The extension includes premium and administrative fee payments, deferring and waiving the resulting interest accrual and other flexibilities to help farmers and ranchers through widespread drought. Producers now have additional time to pay premium and administrative fees, and interest will be waived for 60 days or the termination date on the policy, whichever comes first. RMA also authorized AIPs to waive interest for an additional 60 days for Written Payment Agreements due between August 1 and September 30, 2021. RMA Acting Administrator Richard Flournoy states, “Farmers and ranchers are weathering tough drought conditions this year, and we want to help ease the burden by extending payment deadlines and deferring interest accrual.” Additionally, RMA updated policy in June to allow producers with crop insurance to hay, graze or chop cover crops at any time and still receive 100 percent of the prevented planting payment. *********************************************************************************** USB: Consumer Research Unpacks Protein Perceptions The United Soybean Board Wednesday released new consumer data shedding light on consumer perceptions around protein. More than half of consumers, 56 percent, say it is extremely or very important that plant-based proteins be complete, offering nutrition comparable to animal protein. Soy protein is uniquely positioned to help the food industry capitalize on current trends and consumer interests due to its protein quality, versatility and sustainability benefits, according to USB. The data shows most consumers recognize that protein is important to maintaining a healthy and balanced diet, with 82 percent of consumers ages 50 and under agreeing that it is extremely or very important. General health and wellness was given as the top reason for adding protein, animal- or plant-based, to their diets. The study also found the majority of U.S. consumers at 79 percent eat meat, and that 65 percent of the population is open to eating plant-based “flexitarian-friendly” food, with higher numbers reported among younger generations. *********************************************************************************** Purdue Survey Shows Indiana Farmland Prices Hit Record High in 2021 The Purdue Farmland Value and Cash Rents Survey shows farmland prices across Indiana reached all-time highs in June of 2021. Statewide, top-quality farmland averaged $9,785 per acre, up 14.1 percent from the same time last year. The high growth rate for top-quality farmland was closely followed by the growth in average and poor-quality farmland prices, which increased by 12.5 percent and 12.1 percent, respectively. Across all land quality classes, 2021 per-acre farmland prices exceeded the previous records set in 2014. Purdue says a unique combination of economic forces, including net farm income, expected income growth, crop and livestock prices, interest rates, exports, inflation, alternative investments, U.S. policy, and farmers' liquidity, all led to price increase. Cash rental rates also increased in 2021. Average rental rates increased by 3.9 percent for top-quality land, from $259 to $269 per acre. The cash rental rates for average- and poor-quality lands both increased by 4.6 percent to $227 and $183, respectively. *********************************************************************************** USDA Invests $21 Million To Support Historically Black Colleges and Universities The Department of Agriculture announced Wednesday an investment of over $21.8 million to 1890 Land-grant Institutions to support research at Historically Black Colleges and Universities. Agriculture Secretary Tom Vilsack states, “this investment will strengthen the ability of our Land-grant Institutions to deliver innovative solutions that address emerging agricultural challenges impacting diverse communities.” USDA’s National Institute of Food and Agriculture awarded the funds to 1890 Land-grant Institutions to support 58 projects at Historically Black Colleges and Universities in the nation’s Land-grant University System and organizations as part of its Capacity Building Grants program. The program is designed to build capacity for teaching, research and extension activities at eligible institutions including curriculum design, materials development, faculty development, student recruitment and retention, and extension program development support. USDA says the investment will strengthen the quality and diversity of the higher-education workforce, and equip 1890 Institutions with resources needed to better address emerging challenges and create new opportunities.
| Rural Advocate News | Thursday July 29, 2021 |
Washington Insider: US Cattle Market Examination If there has been an issue in recent years that sparks an active discussion and lots of finger pointing, it's the U.S. cattle market. While the origins of the current discourse in Washington on the topic didn't come from a fire at a cattle processing plant in Holcomb, Kansas, it exposed the challenges in the U.S. cattle industry. Rarely have lawmakers met a problem they didn't love. But they are finding out that the solutions to addressing issues in the cattle market are not easy, and are many and varied. Many have complained about the fluctuations in the cattle market after the 2019 Kansas fire, searching for solutions on how to make the cattle market work better. There are clear camps on the issues. One is the four major cattle packers that control some 80% of the slaughter capacity in the U.S. Officials from two of the four companies -- JBS USA and Tyson Foods -- testified before the Senate Judiciary Committee. Shane Miller of Tyson Foods blamed the "law of supply and demand" for the price swings that have been seen. He said there have been "unprecedented market shocks" that have hit the markets the past 18 months. But National Farmers Union President Rob Larew, often a critic of the big cattle packers, countered that "market manipulation by multinational meat companies like those represented here today" were to blame. He called on the panel to "push for much more vigorous antitrust enforcement to rein in the unchecked power of the packers, and if need be, bust 'em up." When the Kansas fire took the plant out of operation, that backed up cattle in the system as they had to be moved to other locations for slaughter. That sent cattle prices down while meat prices rose at the store. Critics note that was repeated during the pandemic when plant workers caught COVID and facilities couldn't keep operating with staff. And then JBS was hit with a cyberattack and the same situation evolved on a smaller scale. President Joe Biden signed an executive order which urged that the meatpacking industry be scrutinized for anticompetitive behavior. That resulted in an announcement from USDA Secretary Tom Vilsack that the Agriculture Department was going to spend $500 million to get more cattle processing capacity. And they also announced another $155 million that was aimed at helping small and very-small processors stay in business and expand. But even those dollars aren't going to come right away. Vilsack was hopeful things would be happening by the end of the year, expressing confidence the federal dollars would prompt even more private-sector investment. Meanwhile, on the other side of the Hill, a House Ag subcommittee looked into the issue, bringing market analysts and academics in to given feedback to lawmakers. But even they raised issues with some of the suggested solutions, like the USDA effort to expand slaughter capacity. Perdue University ag economics chair Jayson Lusk emphasized that lawmakers should not focus to heavily on the ripple effects from things like the Kansas plant fire and the pandemic. "Make policies for the future," he urged, noting new government investments in processing capacity to improve prices paid to farmers "may be fixing yesterday's problem." Plus, he noted that the cost of building a plant is not the only issue as labor availability and regulatory issues also are a challenge. Rabo AgriFinance vice president and animal protein analyst Dustin Aherin chimed in that there are cycles in the cattle market and focusing just on boosting slaughter capacity may still not address issues. "There is a point where industry capacity goes too far to withstand cyclical periods of high cattle supplies--drought risks and cyclical fundamentals must be considered," he cautioned. Several lawmakers have pushed legislation that would require a certain percentage of cattle are sold on a cash basis in the market as opposed to via formula pricing that is sometimes less than clear. There too, Lusk cautioned, "An important distinction needs to be made between price levels and price volatility. And even if all cattle were traded on a negotiated basis, the price level would not necessarily improve." Aherin noted that mandating cash market mandates could end reducing innovation in the cattle market. "Any mandate that would dictate that we have to price a certain number of cattle off of cattle cash transactions certainly hinders the ability to adapt to maybe some new opportunities to price cattle off of beef itself, sometime down the road," he observed. So we will see. Once again, lawmakers are finding out that a solution is not as simple as passing a law. That's not to say action isn't needed. It is. But it has to be carefully considered and as the unintended consequences need to be watched very closely as they could create even more problems, Washington Insider believes.
| Rural Advocate News | Thursday July 29, 2021 |
Groups Lay Out Goals for WTO Reforms A group of U.S. ag and commodity organizations has penned a letter to U.S. Trade Representative Katherine Tai, outlining what they would like to see done in terms of WTO reforms. "WTO reform should focus on further market-based and sustainable trade liberalization, institutional improvements that help members better prevent or address trade problems, and a more effective and efficient dispute settlement system," the groups said. They urged action on "creative new approaches" including a modest outcome for the 12th Ministerial meeting in November relative to agriculture, one that is focused on "improved transparency and notifications" that "lays the groundwork for a more ambitious work plan for MC13." And the groups also brought up a long-standing issue that the sector has urged administration after administration involved in WTO negotiations and the General Agreement on Tariffs and Trade (GATT) before that: Agriculture's long-term goals "should not be used as a trade-off for non-agriculture outcomes."
| Rural Advocate News | Thursday July 29, 2021 |
Several Ag Issues Cited in Exam of USMCA After Year One The Senate Finance Committee held a hearing Tuesday to examine the status of the U.S.-Mexico-Canada Agreement (USMCA) one year after the trade pact started. Canada's inadequate implementation of new market access for U.S. dairy, Mexico's foot-dragging on agriculture biotech approvals, and the lack of a chief agriculture negotiator nominee were some of the key ag-related issues. The U.S. dairy industry has expressed exasperation at what they charge is a lack of Canada implementing the dairy provisions in the USMCA that were supposed to bring more market access for U.S. dairy products into Canada. And the issues aren't just with Canada. Another big concern among lawmakers and the ag industry is Mexico's lack of action on biotech crop approvals -- despite USMCA provisions requiring the approvals process to be science-based. Biotechnology Innovation Organization (BIO) President and CEO Michelle McMurry-Heath told lawmakers the failure of Mexico to approve several new GMO crop varieties has no basis in science, calling the situation "particularly disturbing to not only our innovative agricultural businesses, but also to the investors that really support their work." So far on the agriculture front, dairy is the only case pursued by the U.S. under USMCA procedures, but pressure is clearly rising on the key GMO issues with Mexico.
| Rural Advocate News | Thursday July 29, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, along with weekly jobless claims and updates of U.S. second-quarter GDP and the U.S. Drought Monitor. The U.S. Energy Department's weekly report of natural gas inventories is set for 9:30 a.m. Traders continue to pay close attention to the latest weather forecasts and any news of export sales. Weather Severe storms that went through the Upper Midwest along a cold front on Wednesday continue across the eastern Midwest on Thursday while continuing to push southeast. This will bring moderate to heavy rainfall for some areas of the southern Midwest and a risk for continued strong winds and hail as well. Temperatures behind the front have cooled significantly and will put an end to the heat as the front continually pushes south through the weekend.
| Rural Advocate News | Wednesday July 28, 2021 |
House Ag Approves WHIP+ Reauthorization for 2020, 2021 The House Agriculture Committee Tuesday approved reauthorization for WHIP+ in 2020 and 2021. Chairman David Scott, a Democrat from Georgia, stated during the hearing, the severity of recent natural disasters “has required supplemental assistance, and that’s why I have prioritized extending the Wildfire and Hurricane Indemnity Program Plus for 2020 and 2021.” Known as WHIP, the program provides payments to producers to offset losses from hurricanes, wildfires, and other qualifying natural disasters that occurred in 2018 and 2019. WHIP+ covers the losses of the crops, trees, bushes and vines that occurred as a result of those disaster events, milk losses due to adverse weather conditions, and losses to on-farm stored commodities. The bill, approved by a voice vote of the committee, would expand coverage to include the western drought, last year's derecho in Iowa, and another natural disaster in 2020 and 2021. Representative Mike Thompson, a California Democrat, introduced the bill in January. *********************************************************************************** AEM: 100,000 Equipment Manufacturing Jobs Possible Through Infrastructure Efforts More than 100,000 family-sustaining equipment manufacturing jobs can be created before the end of President Biden’s first term in office, according to the Association of Equipment Manufacturers. AEM says these are high-skilled jobs in primarily rural areas that pay an average annual income of $88,000, which is 35 percent above the current national average. The data comes from a study by IHS Markit, which assumes new infrastructure spending will occur over eight years, beginning in 2022, with three-quarters of the spending taking place during the first five years. Finally, it assumes that the Surface Transportation Reauthorization Act of 2021 will pass in the fall of 2021 at a five-year total investment of $303 billion. AEM’s Kip Eideberg says, “It is time for policymakers on both sides of the aisle to put policy ahead of politics and pass the bipartisan infrastructure framework and secure a five-year surface transportation reauthorization as soon as possible.” *********************************************************************************** Center for Food Safety Files Lawsuit over Trump-Era GE Rule The Center for Food Safety this week filed a federal lawsuit challenging the 2020 decision by the Trump administration to eliminate most genetically engineered organism oversight. Previously nearly all GE plants had to go through formal Department of Agriculture approval before open-air experiments or prior to commercial use. However, the center claims the new Trump USDA regulations exempt broad categories of GE organisms from any pre-market approval. Center for Food Safety legal director George Kimbrell says, "The rules unlawfully eviscerate and abandon USDA's responsibility to protect farmers and the environment." Instead of strengthening rules, the lawsuit alleges the rule either exempts most GMOs from regulation or subjects them to cursory reviews that sidestep serious analysis of their actual harms. The Plaintiffs in the case are National Family Farm Coalition, Center for Food Safety, Pesticide Action Network North America, Center for Environmental Health, Friends of the Earth, and Center for Biological Diversity. *********************************************************************************** FCC Announces $311 Million for Rural Broadband Efforts The FCC this week announced more than $311 million in broadband funding through the Rural Digital opportunity fund. The FCC is ready to authorize the funding across 36 states and took steps to clear up issues with the program’s design originating from its adoption in 2020. As a result of the announcement, 48 broadband providers will bring one gigabit per second broadband speeds to nearly 200,000 homes and businesses over the next ten years and is the first funding approved through the Rural Digital Opportunity Fund. At the same time, the FCC also took steps to clean up the program. In light of complaints that the program was poised to fund broadband to parking lots and well-served urban areas, the FCC sent letters to 197 winning bidders. The letters offer providers an opportunity to withdraw their funding requests from those places already with service or where significant questions of waste have been raised. *********************************************************************************** NACD Announces $2.1 Million in Grants to Local Conservation Districts The National Association of Conservation Districts announced $2.1 million in technical assistance grants Tuesday. The grants were awarded to nearly 60 conservation districts in 23 states and territories. Made possible through an agreement with the Department of Agriculture’s Natural Resources Conservation Service, the grants complement the $13 million in technical assistance grants awarded to previous grantees in April of this year. NACD President Michael Crowder says, "These grants will help conservation districts carry out conservation plans for customers in high priority areas." State conservation partnership leaders helped identify high priority locations and workloads to guide where the awards would best be placed. The funds will support approximately 90 full- and part-time individuals, of whom nearly half are new hires. More than $600,000 of matching funds will be added to these awards, furthering the impact of the grants. To date, in 2021, NACD and NRCS have awarded $15 million in technical assistance grants. *********************************************************************************** USDA Announces Rural Economic Development, Social Disadvantaged Farmers Funds The Department of Agriculture Tuesday announced $14 million in rural economic development project investments. USDA is providing the funding through the Rural Economic Development Loan and Grant program, which provides zero-interest loans and grants to utilities. The utilities then lend funds to local businesses for projects that create and retain employment in rural areas. USDA Rural Development undersecretary Justin Maxson says, “These loans and grants will help rural communities build back better and support job creation.” The announcement includes investments in Illinois, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, North Carolina, Ohio and Tennessee. Meanwhile, on Monday, USDA announced $16.6 million for entities that help socially disadvantaged and veteran farmers and ranchers own and operate successful farms. That funding comes from USDA’s Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers and Veteran Farmers and Ranchers Program, also known as the 2501 program. The 2501 program is administered by the USDA Office of Partnerships and Public Engagement.
| Rural Advocate News | Wednesday July 28, 2021 |
Washington Insider: Fed Decision Awaited The issue of inflation looms large as the Federal Open Market Committee (FOMC) -- the Fed's decision-making body -- concludes its two-day meeting Wednesday afternoon. And the topic of inflation has been one that continues to dominate a lot of attention throughout the country as consumers are seeing higher prices for several things, including food and fuel. USDA recently updated its food price inflation outlook, but surprisingly did not raise its current expectations for prices. USDA maintains an outlook for all 2.5% to 3.5% in 2021, with food at home (grocery store) prices seen rising 2% to 3% in 2021. Restaurant prices, food away from home, are forecast to gain 3% to 4% from 2020 levels. All three forecasts were steady with the prior month. That is somewhat surprising since USDA often times has made changes to its overall outlooks in July. But prices this year are seen above the 20-year average, and come after upward revisions made in their forecast last month. But consumers are coming off a period of extended favorable prices at the grocery store. Until 2020, prices had either risen far less than their 20-year average or had falling in two years going back to 2016. But after such a favorable run, it's no wonder that the food price inflation situation is of concern to consumers. After all, the pandemic caused food price inflation to push even higher in 2020 compared with the forecast levels for 2021. As COVID vaccines have been given and restrictions have been lifted, consumers have been ready to get out and eat out more than they were able to for much of 2020 -- restaurant prices were up 4.2% from June 2020. Food is one of those categories that is excluded from the Fed's favored inflation gauge -- Personal Consumption Expenditures (PCE). It is a broader reading than the Consumer Price Index (CPI) and still their favored PCE data is the one that strips out food and energy, the so-called core rate. So what the Fed says about inflation when the meeting concludes Wednesday afternoon will be notable. They have insisted for months when each policy meeting has wrapped up that they see the higher prices as "transitory" and that they will not become established enough or significant enough to prompt a Fed response like raising interest rates. The Fed has also been buying Treasuries and mortgage-backed securities at a pace of $120 billion per month. The concept is that buying those bonds will lower borrowing costs for consumers and businesses, and keep economic activity moving forward as we recover from the pandemic. But one of the first policy moves they will take is to "taper" those bond purchases. Fed Chairman Jerome Powell had insisted until the June meeting that it was too soon to "talk about talking about" tapering those bond buys. But after the June meeting, he acknowledged that "talk" had begun. Expectations are that they will not have completed that discussion. But attention will be on whether or not Powell signals that they are close to a decision. That could prompt some market concerns as it will mark the start of the ending of the easy money policy by the Fed. Even so, Powell has promised there will be plenty of notice when the tapering of those bond buys start so the market will not get spooked. Still, even with all kinds of notice, some are likely to get spooked anyway. So we will see. As the Fed moves closer and closer to removing some of the easy money from the market, it will prompt response higher in interest rates and that will start to add another cost factor in for agriculture that needs to be watched very closely, Washington Insider believes.
| Rural Advocate News | Wednesday July 28, 2021 |
China's New US Ambassador Headed to Washington China's new ambassador to the U.S., Qin Gang, is heading to Washington on Wednesday, ending speculation over who will be handed the difficult task of trying to ease fractious relations between the powers. The 55-year-old Qin has been a vice foreign minister and has had several western countries and regions in his portfolio. However, he has no direct U.S.-related experience. The South China Morning Post said he has spent the last several days meeting with U.S. businesses in Chin before departing for Washington. He replaces Cui Tiankai, 68, who was the longest serving ambassador to the U.S. and had passed the retirement age for senior Chinese ambassadors, according to Reuters. Qin has also been a spokesman for the country's foreign ministry and many believe he will potentially take a tougher line than his predecessor.
| Rural Advocate News | Wednesday July 28, 2021 |
Senate Agriculture Panel Approves Moffitt For USDA Post The Senate Agriculture Committee voted via voice vote late Monday to advance the nomination of Jennifer Moffitt to be undersecretary for marketing and regulatory programs. Timing for a vote in the full Senate is not yet known. A full Senate vote on another nominee -- Janie Hipp to be general counsel -- is also uncertain as Senate Agriculture Committee Chair Debbie Stabenow, D-Mich., and Ranking Member John Boozman, R-Ark., said they believe a Republican Senator has a hold on the nomination. And, it's not clear for what reason as there has been little opposition heard on the Hill about Hipp
| Rural Advocate News | Wednesday July 28, 2021 |
Wednesday Watch List Markets The latest weather forecasts remain the main attention for grain traders. The U.S. Energy Department's weekly inventories report is due out at 9:30 a.m. CDT Wednesday. The Federal Reserve's two-day meeting will likely keep the federal funds target unchanged and concludes with an announcement at 1 p.m. CDT. The Wheat Quality Council's spring wheat tour moves to day two after estimating a yield of 29.5 bushels an acre on day one. Weather Hot temperatures continue for another day but a cold front moving through the Northern Plains and Upper Midwest will send temperatures down closer to normal Thursday. This front will also produce some strong to severe thunderstorms across the Upper Midwest that could be damaging.
| Rural Advocate News | Tuesday July 27, 2021 |
House to Consider Appropriation Bills In a flurry of activity ahead of the August recess, the House of Representatives will consider appropriation bills this week, including the agriculture spending bill. The process began Monday with the House Rules Committee. The 2022 agriculture spending bill provides discretionary funding of $26.5 billion, an increase of $2.8 billion, or 12 percent above 2021. In total, the bill includes $196.7 billion for both discretionary programs funded on an annual basis and mandatory programs such as the Supplemental Nutrition Assistance Program. The bill is part of a package of seven total spending bills being considered this week in the House, including labor, energy, financial services, interior, military and transportation. The House Agriculture Committee also scheduled a hearing Tuesday on the 2020 WHIP+ Reauthorization Act, expanding the Wildfire and Hurricane Indemnity Program Plus to 2020. Meanwhile, the Senate looks to finalize its infrastructure package this week, ahead of the August recess, as well. *********************************************************************************** Thompson Seeks House Hearing on Senate Climate Bill The top Republican on the House Ag Committee calls for a hearing on the Senate Growing Climate Solutions Act. In a letter to Chairman David Scott, a Georgia Democrat, Glen GT Thompson of Pennsylvania says, “I write to express concerns with this legislation and request further review by the House Committee on Agriculture.” Thompson has maintained concerns of government involvement in carbon credit markets. The legislation authorizes the Department of Agriculture to establish a voluntary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to reduce entry barriers into voluntary environmental credit markets. Thompson counters, “I think this legislation is a solution in search of a problem,” adding, “The language is imprecise and disjointed, leaving questions related to how to interpret certain requirements and policy goals.” Sent last week, the letter requests a significant review of the bill, along with consideration of other proposals in Congress that have similar goals. *********************************************************************************** Bronaugh to Leading U.S. Delegation at UN Food Systems Pre-Summit Agriculture Deputy Secretary Jewel Bronaugh (Bruh-NAW) is leading the U.S. delegation at the United Nations Food Systems Pre-Summit in Rome this week. Leading up to the UN Food Systems Summit in New York in September, Bronaugh and U.S. officials are working with other countries and food systems stakeholders in Rome to build coalitions and consensus around shared objectives, including food security and nutrition, climate change, and equity and inclusion. The Summit was convened by the UN Secretary-General with “the aim of placing the planet on the path to achieving the Sustainable Development Goals,”– proposals that are intended to establish a framework for global peace and prosperity. The fundamentals of the discussion include duly representing farmers, making science-based policies and recognizing agriculture as part of the solution to the main problems facing humanity. While in Rome, Bronaugh will also meet with Italian government officials and UN officials, including the Food and Agriculture Organization leadership. *********************************************************************************** Demand for American Lamb Continues to Rise Consumer demand for lamb increased considerably during 2020. While all meat sales grew as more meals were consumed at home, lamb sales grew at a larger percentage than total meat sales overall, according to the American Lamb Board latest U.S. Retail Sales Report. The 2021 first-quarter report assesses the American lamb market by comparing four-week, 12-week, and 52-week intervals to one year prior. Last year saw a 24.7 percent increase in lamb dollar sales from 2019 and a 17.7 percent increase in pounds sold from 2019. Sales of racks exploded in the third and fourth quarters of 2020. Compared to 2019, rack sales increased 52.8 percent in terms of pounds sold. Sales of ground lamb also saw considerable growth, a 23.7 percent increase in volume sales. Meanwhile, sales of lamb in the first quarter of 2021 outperformed the same 12 weeks a year ago by a sizable margin as dollar sales increased 19.8 percent and volume sales increased 11.8 percent. *********************************************************************************** Oil and Gas Prices Decline Over COVID Concerns Gas and diesel prices fell again in the last week, following a drop in the value of oil. GasBuddy reports the national average gas price dropped 2.9 cents to $3.14 a gallon, while diesel fell .7 cents to $3.26 per gallon. GasBuddy’s Patrick De Haan states, “With oil prices struggling under the weight of a rise in new Covid cases thanks to the Delta variant and OPEC’s increase in oil production, average gas prices in most states finally drifted lower.” However, U.S. gasoline demand surged to a new 2021 high last week, and De Haan warns of a bumpy end to summer regarding fuel prices. Implied gasoline demand rose 12,000 barrels per day to 9.3 million, just slightly under normal levels for this time of year. The national average for gas now stands 4.7 cents higher than a month ago and 97.2 cents higher than a year ago. Meanwhile, oil demand typically declines heading into fall. *********************************************************************************** Students Gather to Ensure the Future of Agriculture This week, 44 FFA members gather in Indianapolis to discuss how agriculture will play a pivotal role in their future. It’s all part of the New Century Farmer conference – an opportunity for FFA members who plan to remain in production agriculture to work on their secession plans for success. During the week, participants will visit with producers around the state, learn from industry leaders, see innovative agricultural technology and network with others who also plan to stay in production agriculture. National FFA educational specialist for Programs and Events, Kate Wehby, says, “This program helps us continue to grow the next generation of leaders.” The conference was canceled last year due to the COVID-19 pandemic. Participants selected to participate in 2020 were invited to attend the 2021 event. New Century Farmer is sponsored by Case IH, Corteva Agriscience, Farm Credit, Nutrien Ag Solutions, and Meredith Agrimedia. Learn more about the program online at ffa.org.
| Rural Advocate News | Tuesday July 27, 2021 |
Washington Insider: US, China Clashes Continue The U.S. and China have moved into a contentious stance as the Biden administration has unfolded, and this week has indicated that relationship has not shifted a great deal. The week opened with U.S. Deputy Secretary of State Wendy Sherman holding in China with top officials, including with Vice Foreign Minister Xie Feng. Interestingly, while that session was still going on, Chinese state media released a statement from Xie contended the U.S. had created an "imaginary enemy" in China to divert attention from domestic U.S. issues. "The United States wants to reignite the sense of national purpose" with state media reporting that there would be "serious consequences." Xie urged the U.S. to lift visa restrictions on Communist Party members, their families, and Chinese students; lift sanctions imposed on Chinese leaders, government officials and agencies; remove restrictions on Confucius Institutes and Chinese companies; cancel rulings determining Chinese media as foreign agents; and dropping its request to extradite Huawei financial chief Meng Wanzhou from Canada. Sherman's meeting with State Councilor and Foreign Minister Wang Yi was labeled "frank and open" relative to "a range of issues, demonstrating the importance of maintaining open lines of communication between our two countries. They discussed ways to set terms for responsible management of the U.S.-China relationship, according to the U.S. State Department. Sherman "underscored that the United States welcomes the stiff competition between our countries -- and that we intend to continue to strengthen our own competitive hand -- but that we do not seek conflict with the PRC (People's Republic of China)." While that was unfolding in China, the U.S. and China butted heads at the WTO. The issue is the same one where they recently clashed at the world trade body -- over China's operation of their tariff rate quotas (TRQs) for wheat, rice and corn. At a meeting of the Dispute Settlement Body, China contested the U.S. request for permission to impose trade retaliation on China over the TRQ issue. That means the matter is now headed to arbitration. But China also submitted a request for a dispute panel to look at whether it had come into compliance with the WTO ruling on its TRQs which dates back to 2019. The U.S. blocked the request, but will not be able to block a second request. The U.S. believes that the retaliatory actions can move ahead while the two sides are in arbitration, but China said the arbitration should be suspended until the determination is made on whether they have changed their TRQ program and come into compliance with the WTO ruling. China not only contends that it has come into compliance with the WTO ruling but they are also taking issue with the level of retaliation sought by the U.S. And China has also made clear that it wants the U.S. tariffs imposed by the Trump administration to be removed. But so far, there has been no sign from the Biden administration that they are ready to take that step either. So we will see. The level of acrimony continues to rise between the two countries, though no major actions have been taken by either side. Still, the situation should be watched closely in the coming weeks and months, Washington Insider believes.
| Rural Advocate News | Tuesday July 27, 2021 |
China Warns EU Carbon Border Tax Violates Trade Principles Plans outlined by the European Commission to implement a Carbon Border Adjustment Mechanism (CBAM) from 2026 would force companies sending carbon-intensive products into the European Union (EU) to pay carbon costs on such shipments. "CBAM is essentially a unilateral measure to extend the climate change issue to the trade sector," said Ministry of Ecology and Environment spokesman Liu Youbin. "It violates WTO principles ... and (will) seriously undermine mutual trust in the global community and the prospects for economic growth." The U.S. has also raised questions about the potential EU carbon tax, with U.S. Trade Representative Katherine Tai indicating the U.S. would not shy away from confronting the EU on the matter.
| Rural Advocate News | Tuesday July 27, 2021 |
Vilsack Talks Food Inflation, Livestock Regs USDA Secretary Tom Vilsack predicted the rise in U.S. food prices seen in June will start to moderate despite the concerns over inflationary pressures in the U.S. economy. "There are certain selective items in the grocery store folks may see for a period of time increased costs," Vilsack said Friday in an interview on Bloomberg Television's Balance of Power with David Westin. "We think this will even out as we begin to recover, as we begin to get the supply and demand in better balance." Meanwhile, Vilsack signaled USDA would soon announce proposed regulations to provide more protection to livestock producers in their dealings with the highly consolidated meatpacking industry. President Joe Biden's executive order on competition instructed the USDA to consider stronger regulations. "I think we will see significant action on that in the very near term," Vilsack said in the session.
| Rural Advocate News | Tuesday July 27, 2021 |
Tuesday Watch List Markets A report on U.S. durable goods orders for June is due out at 7:30 a.m. CDT Tuesday, followed by a U.S. index of consumer confidence in July at 9 a.m. For grains, the main interests continue to be weather, export sales, any new developments concerning biofuels policy and the Crop Progress report, just released Monday afternoon. Weather Scattered showers will be found near the Great Lakes and across the south on Tuesday. Temperatures will be quite hot across most of the growing regions today. This will benefit the final stages of winter wheat harvest but cause further stress to drier areas.
| Rural Advocate News | Monday July 26, 2021 |
Soy Sustainability Protocol Reaches 100-Million Metric Tons of Exports The U.S. Soybean Export Council, United Soybean Board, and the American Soybean Association are happy to announce a new milestone for U.S. soy exports. More than 100 million metric tons of U.S. Soy Sustainability Assurance Protocol verified soy has been exported internationally over the seven years since the program launched in 2014. With the growing demand for sustainable soy globally, the SSAP has been recognized as compliant with the European Manufacturers’ Federation Soy Sourcing Guidelines, the Olympic and Paralympic Games Tokyo 2020 Organizing Committee’s sustainable sourcing code for ag products, the Consumer Goods Forum, and more. “As consumer consciousness about health, the environment, and the need to meet global nutrition and food security continue to drive demand for nutritious and sustainable protein, the U.S. SSAP enables us to provide our global food, feed, consumer packaged goods, and retail sector customers with verified, sustainable U.S. soy,” says Jim Sutter, CEO of the U.S. Soybean Export Council. “A reliable supply of high-quality, sustainably-produced U.S. soy plays a vitally important role in enabling families and the food-feed industry around the world to feed our growing planet sustainably.” The U.S. soy industry worked together with non-governmental organizations to develop the SSAP to back up U.S. soybean farmers’ commitment to sustainability. *********************************************************************************************** Chinese Soybean Imports to Drop Later in 2021 China’s soybean imports are likely to slow sharply during the second half of this year after a record first-half buying spree. Reuters says that puts a dent in expectations for sustained growth from the top global soybean buyer and hurts U.S. market sentiment just as farmers will need to sell their new crop. A serious drop in hog profitability and a sharp rise in the use of wheat for feed are slowing down Chinese demand for soybeans, just as farmers are expecting to pull in their third-largest harvest in history. That will add further volatility to a critical crop, which rallied earlier in 2021 to nine-year highs. The manager of a crush plant in northern China told Reuters that, “Soymeal demand is reaching rock bottom as the basis hit its lowest point so far this year. We can’t place a lot of orders to make purchases, so U.S. soybean exports will surely be hit.” China imported a record 48.95 million tons in the first half of 2021, up nearly nine percent on the year as hog herds recovered from African Swine Fever and top producer Brazil shipped a record crop to the Asian nation. ********************************************************************************************** New Ad Campaign Asks Washington to Stop Big Oil Growth Energy launched a new digital ad campaign urging President Biden and congressional leaders to stop oil industry handouts. The campaign also asks Washington to uphold its commitments to reducing carbon emissions and supporting low-carbon fuels. The ads will appear online in the Washington Post and Politico and run until August. Readers will be directed to an action page focused on restoring year-round sales of E15 and emphasizing the importance of strong Renewable Volume Obligations under the Renewable Fuel Standard. In the wake of recent court decisions that could limit the market for U.S. biofuels, Growth Energy CEO Emily Skor emphasized the urgent need for action by regulators and lawmakers. “It’s time for leaders in Washington to make good on their commitments to clean, renewable energy and put a stop to Big Oil’s efforts to restore its monopoly over the U.S. fuel mix. The evidence is clear – Congress and the administration cannot decarbonize transportation without a growing role for low-carbon biofuels, which are vital to our climate, working families, and the economy.” She also says policymakers must act swiftly to ensure uninterrupted, year-round access to E15 and set ambitious biofuel blending levels. ********************************************************************************************** Brazil Coffee Growers Hit Hard by Frost A surprise frost that struck Brazil’s coffee belt last week hit farmers hard. Financial Post says industry experts fear farmers may default on deliveries of recently-harvested coffee that were sold to traders months ago at prices that are half of the current value. Temperatures dropped below the freezing level on the morning of July 20, delivering a big blow to the heart of the coffee belt, damaging trees so much that it may harm prospects for next year’s coffee crop. Late last week, industry estimates on possible losses to next year’s coffee crop varied widely. Initial forecasts for a loss of 1-2 million bags quickly increased. One Brazilian exporter expects a cut of approximately 4.5 million bags. Initial 2022 production estimates totaled almost 70 million bags. Judy Gaines, a U.S.-based commodity analyst, says it might be too soon to speculate on the damage. “There are a lot of aerial photos going around,” she says. “But nobody knows if those trees will only have to be pruned, which will result in zero production next year, or if they need to be taken out, which means no production for the next two or three years.” ********************************************************************************************** NFU Praises FTC Decision on Right to Repair The National Farmers Union praised the Federal Trade Commission’s 5-0 vote to adopt a policy statement to ramp up law enforcement against repair restrictions on equipment. Those restrictions prevent small businesses, workers, consumers, and government entities from fixing their products. “Farmers are among the most affected by such restrictions; currently, farm equipment manufacturers refuse to sell software repair tools to farmers or independent mechanics,” the organization says in a news release. “This all but forces farmers to take their broken machinery to a licensed dealership, which can be expensive and inconvenient.” The Hagstrom Report says the NFU has long supported a farmer’s right to repair. The organization is encouraged that the administration is finally taking action to eliminate unnecessary and unfair repair restrictions that will give farmers greater freedom to fix their equipment. The FTC says, “The policy statement adopted today is aimed at manufacturers’ practices that make it extremely difficult for purchasers to repair their products or shop around for service providers to do it for them.” By taking action against the restrictions that violate antitrust or consumer protection laws, the commission says it’s taking important steps to restore the right to repair. *********************************************************************************************** Nutrition Research Improving Public Perception of Beef The Beef Checkoff is celebrating its 35th anniversary, and the NCBA is talking about the successful promotion and research programs driving beef demand. The NCBA says consumers are more open to the nutritional benefits of beef than at any other time since the Checkoff first began more than three decades ago. The Beef Checkoff was implemented during a time when U.S. Dietary Guidelines suggested Americans should limit beef in their diet and reduce their intake of fat and cholesterol. “I’ve seen firsthand the evolution of nutrition behavior over the years,” says Becky Walth, a South Dakota producer and member of the Nutrition and Health Checkoff Committee. “The Beef Checkoff has been ahead of the curve, conducting research to demonstrate the importance of beef in a balanced diet.” Two landmark studies commissioned by the Beef Checkoff reinforced the idea that beef fits a heart-healthy diet. Because of checkoff-funded research, beef can now be Americans’ protein of choice in any gold standard, heart-healthy diet. Beef is also consistently recommended by scientists, physicians, and registered dieticians. In addition, 75 percent of consumers now agree that beef is nutritious.
| Rural Advocate News | Monday July 26, 2021 |
Washington Insider: Debt Limit Looms As attention remains on the trillions in dollars of spending being pushed by the Biden administration via the bipartisan infrastructure package and a "social" infrastructure plan, another spending issue is rising and it is one that, unlikely infrastructure, has to be dealt with -- the debt limit. Treasury Secretary Janet Yellen penned a letter to congressional leaders late last week, urging them they needed to act on the debt limit before the end of September. "Once the current debt limit suspension expires at the end of July, the department will begin using so-called extraordinary measures, or budget maneuvering," Yellen said, steps that will keep the U.S. from defaulting on its obligations. It is not clear how long the government can use these extraordinary measures before they would hit a default. CQ said Yellen's plea was that lawmakers needed to act "as soon as possible," the publication said, "to avoid an event similar to or worse than the 2011 debt limit standoff when the country experienced the only credit rating downgrade in its history." What can affect these extraordinary measures and how they can stave off a U.S. debt default? "The period of time that extraordinary measures may last is subject to considerable uncertainty due to a variety of factors, including the challenges of forecasting the payments and receipts of the U.S. government months into the future, exacerbated by the heightened uncertainty in payments and receipts related to the economic impact of the pandemic," Yellen said. August 1 will see the Treasury start these measures as that is the date that the most-recent debt-limit deal expires. Treasury, Yellen said, would start by suspending sales of special state and local government securities, to remain technically within the borrowing cap, which on that day will reset to roughly $28.5 trillion. The agency's cash balance, which sat at $616 billion as of Wednesday, is expected to drop to $450 billion by the end of the month, CQ said. The Congressional Budget Office last week predicted that the extraordinary measures will probably allow the Treasury to make to October or November before action would be needed by either raising the debt limit or suspending it once again. But Yellen is not apparently in agreement with CBO. She said the Treasury was likely to burn through some $150 billion in available cash and extraordinary measures, including large payments for military retirement and health care benefits. "There are scenarios in which cash and extraordinary measures could be exhausted soon after Congress returns from recess," Yellen said, referring to the Senate scheduled to return from the August congressional recess September 13 and the House September 20. As for options for Congress, the Congressional Research Service (CRS) said there are four options: (1) leave the debt limit in place; (2) increase the debt limit to allow for further federal borrowing; (3) maintain the current debt limit and require the implementation of "extraordinary measures" that will postpone (but not prevent) a binding debt limit; or (4) temporarily suspend or abolish the debt limit. Congress has enacted 98 separate debt limit modifications between the end of World War II and the present to accommodate the changes in federal debt levels, CRS said. Since 2001, Congress has passed 17 distinct changes to the debt limit. The mention of 2011 comes to mind as an event where the debt-limit issue actually had some impacts on the government. For one, the U.S. debt rating was lowered. That sent shudders through financial markets. A 2013 report by the Treasury Department said, "Because the debt ceiling impasse contributed to the financial market disruptions, reduced confidence and increased uncertainty, the economic expansion [in 2011] was no doubt weaker than it otherwise would have been." But Republicans have also thrown another potential roadblock up on the debt limit, saying they will either not help Democrats if they want to suspend the debt limit, or they have set up a list of demands that would get their support for action on the debt limit. But many view their apparent list as unrealistic. One suggestion from 15 Republicans on the House Budget Committee would be another decade long series of spending caps on discretionary spending, similar to the 2011 deficit reduction law (PL 112-25) that the federal government is just emerging from. However, Democrats could opt to use budget reconciliation to raise the debt limit, a move that would mean they would not need Republican support to take the action. But they would likely have to set a specific dollar amount for the allowable debt as opposed to just setting a new date for a suspension of the debt limit. Yellen, however, called on congressional leaders to find a bipartisan solution. "In recent years Congress has addressed the debt limit through regular order, with broad bipartisan support," she wrote. "I respectfully urge Congress to protect the full faith and credit of the United States by acting as soon as possible." So we will see. The debt limit looms as a truly must-have situation as a lack of action could have disastrous impacts that would likely raise borrowing costs and potentially slow the economic recovery from the pandemic and the situation will need to be monitored closely, Washington Insider believes.
| Rural Advocate News | Monday July 26, 2021 |
Former Iowa U.S. Rep. Finkenauer to Challenge For Grassley Seat Former Rep. Abby Finkenauer, D-Iowa, defeated after serving one term in the House of Representatives, announced Thursday she will seek the Democratic nomination for the U.S. Senate seat currently held by longtime Republican Sen. Chuck Grassley. Finkenauer is "the first major Democrat to announce a Senate run in Iowa," Axios reported, noting that Grassley has not yet said he will run for another term in office. The Associated Press said that Finkenauer, "despite losing her House seat in 2020 after one term, remains a youthful prospect in the Iowa Democratic Party, which has struggled to produce a new generation for statewide office." According to the Des Moines Register, Finkenauer has put her attention on "many of the themes that motivated her two campaigns for Congress, including a focus on working Iowans and support for the middle class."
| Rural Advocate News | Monday July 26, 2021 |
Farm Bureau Says Mexico Official Assured Glyphosate Ban Does Not Apply to Feed Mexican Economy Secretary Tatiana Clouthier met with American Farm Bureau Federation President Zippy Duvall in Washington last week, telling reporters that he got a key update from Clouthier on the country's coming ban glyphosate. Duvall told reporters on Thursday he got clarity on the Mexican government's plan to ban the widely used herbicide glyphosate by 2024: It only applies to crops grown for human consumption and not those grown for animal feed, he said. Meanwhile, the brief readout of the session between Clouthier and U.S. Trade Representative Katherine Tai did not mention the ag issues, but indicated the U.S. "remains committed to the full implementation of the USMCA, including the strong auto rules of origin, and Mexico's important labor reforms."
| Rural Advocate News | Monday July 26, 2021 |
Monday Watch List Markets Back from the weekend and ready to start the final week of July, traders will be keeping a close eye on the latest weather forecasts, straining to get a glimpse of the possibilities in August. A report on U.S. new home sales for June is due out at 9 a.m. CDT, followed by USDA's weekly report of grain export inspections at 10 a.m. USDA's Crop Progress report is set for 3 p.m. and lower crop ratings seem likely, given the past week's lack of significant rain. Weather Periods of scattered showers will be found across the northern tier of the country and also from the Southern Plains to the Mid-Atlantic down to the Gulf Coast. The showers may have some localized benefit across the drier northwestern areas but are not expected to have a widespread effect. Temperatures approaching or eclipsing 100 degrees Fahrenheit will put stress on reproductive crops in drought areas.
| Rural Advocate News | Friday July 23, 2021 |
U.S. and China Trading at a Brisk Pace China and the U.S. are shipping goods back and forth at the quickest pace in years. Bloomberg says that’s making it look as if the tariff war and COVID-19 never interrupted the world’s largest bilateral trade relationship. Bilateral trade in goods is an area of stability in a relationship that otherwise continues to struggle. In February of 2020, monthly two-way trade dropped to $19 billion amid shutdowns. However, official Chinese data says the trade numbers rebounded over the past year to set new records. That boom is likely to remain as China purchases millions of tons of U.S. farm commodities for this year and next. While the U.S. government has somewhat different numbers on trade, the brisk pace has defied all expectations that the tariffs still in place on hundreds of billions of dollars worth of merchandise would interrupt supply chains. Both sides are living with the extra cost as China continues to buy large quantities of farm products to fulfill terms of the 2020 Phase One Trade Deal, while U.S. companies continue to purchase the products that they can’t get anywhere else to meet rising consumer demand. *********************************************************************************************** White House Delaying Biofuel Mandates The White House is delaying the annual process that decides how much ethanol and other biofuels will get blended into the nation’s fuel supply each year. Two sources told Reuters that the administration is looking for a solution to the issue which pits refineries against corn farmers. Lawmakers on both sides of the disagreement have pushed the Biden Administration for months to decide the issue. Refiners want low volumes of biofuels to keep their production costs down, while U.S. farmers want higher volumes to pump up sales of corn-based ethanol and other products. Sources say the White House has largely stayed out of the matter until now, but the administration is looking to take control of the situation. Both the refining and corn-based industries have waited anxiously for the Environmental Protection Agency to announce proposals for the level of biofuels that refiners must blend in 2021 and 2022. The 2021 amount is over half a year late due to the economic fallout from COVID-19. Many expected the proposals in June, which didn’t happen. A series of court rulings on the issues related to the Renewable Fuel Standard has only amplified confusion for both industries. ********************************************************************************************** Vilsack Defends Farmworker Changes Ag Secretary Tom Vilsack discussed proposed migrant farmworker programs during a hearing before the Senate Judiciary Committee. The hearing was set to talk about an earned pathway to citizenship for migrant farmworkers. Roll Call Dot Com says several Republicans on the committee said they won’t support such legislation without first improving security on the southern border. South Carolina Republican Lindsey Graham said, “You don’t give amnesty and hope people won’t keep coming. You secure the border, then you provide legal status. We’re doing it completely backward.” In March, the House passed legislation that would allow migrant workers who had already worked a certain number of years to apply for legal status. Vilsack defended the bill, saying he doesn’t believe its passage would cause an influx of immigrants at the border. The debate over citizenship for migrant farmworkers comes soon after a federal judge ruled that the Obama Administration’s Deferred Action for Childhood Arrivals program is illegal. The program was designed to protect certain undocumented immigrants brought to the United States as children. ********************************************************************************************** NIFA Announces $7 Million in Ag Research Grants The USDA’s National Institute for Food and Agriculture announced more than $7 million in research grants to non-land-grant colleges and universities. “These grants aim to increase research, education, and outreach capacity at non-land-grant institutions to support the development of the innovations and workforce needed to sustain the agriculture industry in the future,” NIFA said in a news release. Carrie Castille, director of NIFA, says, “The National Institute of Food and Agriculture awards research, education, and extension grants to solve the grand challenges before all of us. These efforts will help improve rural economies, increase food production and agricultural profitability and sustainability, address climate change and related issues, ensure food and nutrition security, and train the next generation of the agricultural workforce.” Among the 24 funded projects, Texas A&M will study how pollinator-friendly perennials in ornamental landscapes can provide a solution to decades of major declines in pollinator populations. Other grants will help train networks of scientists and educators who will work on climate-ready and sustainable agricultural practices, as well as other studies on soil and water quality. *********************************************************************************************** Ethanol Production Drops to a Five-Week Low Ethanol output during the week ending on July 16 dropped to the lowest level in five weeks while inventories climbed higher. The Energy Information Administration says production of the biofuel dropped to an average of 1.028 million barrels a day. That’s down from 1.041 million barrels a day, on average, the previous week and the lowest production level since the week ending on June 11. In the Midwest, which produces the most ethanol of any region in the country, output averaged 980,000 barrels a day, also a five-week low. The Midwest decline accounted for the entirety of the losses for the week as production in the Gulf Coast rose to an average of 18,000 barrels per day last week. East Coast output was unchanged at 12,000 barrels a day, Rocky Mountain production stayed around 10,000 barrels a day, and the West Coast production level stayed at 9,000 barrels a day. Ethanol stockpiles jumped to their highest level in almost five months during the week ending on July 16. Inventories rose to 22.51 million barrels last week, up from 21.1 million during the previous week and the highest level since the week ending on February 19. ********************************************************************************************** Consumer Demand for Lamb Protein Keeps Rising Consumer demand for lamb increased considerably during 2020. While all meat sales grew during the year as more meals were eaten at home, lamb sales grew at a larger percentage than total meat sales overall. That’s according to the U.S. Retail Sales report commissioned by the American Lamb Board. First-quarter sales in 2020 increased by almost 25 percent from 2019 to 2020, and the pounds of lamb meat sold increased by 17.7 percent during that same time. Sales of rack of lamb exploded in the third and fourth quarters of 2020. Compared to the previous year, rack sales increased almost 53 percent in terms of pounds sold. Sales of ground lamb also saw significant growth, increasing by 23.7 percent. California has seen the most growth since 2019, thanks to a 30 percent increase in dollar sales and a 29.6 percent increase in pounds sold. The Northeast U.S. remains the highest-selling region by a significant margin, accounting for 29 percent of all lamb sales in the U.S. Lamb retail sales remained strong into the first quarter of 2021. Compared to the first quarter of 2020, dollar sales grew by almost 20 percent, and volume sales climbed almost 12 percent higher.
| Rural Advocate News | Friday July 23, 2021 |
Washington Insider: Immigration Remains a Hot Ag Topic Typically the debate over immigration doesn't always involve agriculture. But the Senate Judiciary Committee this week held a hearing on just that topic -- how immigration issues affect agriculture. The attention was on the Farm Workforce Modernization Act (FWMA), with the use of H-2A visas one of the key areas for U.S. ag companies when it comes to bringing in immigrant workers. Under the FWMA, there would be five-year visas to undocumented farm workers who meet specific eligibility criteria. But they would also be provided with a pathway to permanent legal status and that became one of the key issues that Republican lawmakers focused on in the session. USDA Secretary Tom Vilsack told lawmakers that they needed to support the FWMA. The bill, he said, marked a "very delicate compromise" which the House approved earlier this year. Vilsack, a seasoned official in terms of testifying before Congress, turned the questions on lawmakers themselves. That doesn't always happen. But Vilsack pressed Sen. John Kennedy, R-La., on how it could be viewed as amnesty. He specifically noted that he did not see how it could be amnesty "when the bill provides for the payment of a fine of $1,000, I don't quite understand why we're talking about amnesty." Kennedy's simply said, "Because it is amnesty, and I think most Americans see it as amnesty, and I see it as amnesty." But Sen. Chuck Grassley, R-Iowa, likened it to a 1986 immigration reform effort that included an amnesty provision, noting that under that law many agricultural workers that obtained legal status ended up leaving the sector, eventually forcing employers to bring in more illegal immigrants. "The cycle simply began once again," he noted. Sen. Lindsey Graham, R-S.C., said extending citizenship to even one worker under the farmworker bill would result in "a run on the border." Vilsack countered that farmworkers would only qualify for citizenship when they had been in the country for a while. Graham called the idea of passing the farmworker legislation "ass-backwards," saying that the U.S. needs to be addressed first. But some of the liveliest activity came when Sen. Ted Cruz, R-Texas, held the questioning time for Vilsack. He took issue with Vilsack's assertion that if the economic conditions in the countries where immigrants typically have come were addressed, there would not be the flow of those trying to enter the U.S. But Cruz was not having it, noting that those were in poverty last year when the immigration rates were low. "Mr. Secretary, if we were having a hearing on the optimum fertilizer for growing corn, I think you might be a very good witness," Cruz said. "And with all due respect your answers on immigration were fertilizer." And the U.S. agriculture sector is not unified behind the FWMA. The American Farm Bureau Federation opposes the FWMA in part because they say it would make it easier for employees to sue producers. Farm Bureau President Zippy Duvall sent a letter to the committee saying, "Congress must recognize the dangers of incomplete, shortsighted agricultural labor reform initiatives" and urging broad-based reform of the H-2A program." The bottom line from the hearing is what has kept the issue of immigration from being addressed by the U.S. government: There is not a unified view that will gain support from enough lawmakers to make it through Congress. So we will see. Agriculture and immigrant labor is very linked and this is something that needs to be watched closely as effort continue to try and find that still-elusive ground to get immigration reform through, Washington Insider believes.
| Rural Advocate News | Friday July 23, 2021 |
House Approves Legislation Regulating 'Forever Chemicals' The House on Wednesday approved a bill setting deadlines for the Environmental Protection Agency to implement drinking water regulations for so-called forever chemicals. Perfluoroalkyl and polyfluoroalkyl substances (PFAS) are widely used, man-made compounds that are found in manufacturing and consumer products like Scotchguard, flame-resistant materials, nonstick cooking surfaces and firefighting foam used on military bases since the 1940s. They have been found in water wells and thousands of water sources across the country. The bill approved Wednesday 241-182 orders the EPA to designate two PFAS compounds as hazardous air and water pollutants and set drinking water regulations for their use within two years of the bill becoming law. For years the agency has only established a non-enforceable health advisory level on the compounds in drinking water. It also gives the EPA four years to set regulations for the discharge of the chemicals in industrial runoff and wastewater, and five years to set standards for the use of the thousands of other PFAS compounds. The bill requires cleanup of PFAS-contaminated sites and reimburses local water agencies for efforts to reduce the amount of PFAS in drinking water.
| Rural Advocate News | Friday July 23, 2021 |
Republicans Block Procedural Vote in Senate on Infrastructure Senate Republicans blocked Democrats' attempt to start formal debate on a bipartisan infrastructure plan Wednesday, arguing that Democrats are rushing the procedural vote before the final bill has been written. The Senate voted 49-51, failing to reach the 60 votes needed to proceed. The move could be only a delay for President Biden's infrastructure plan, as at least 11 Republicans said they would support the vote if it came up again Monday, when an agreement on the final details of the bill is expected. Talks are expected to continue. Wednesday's vote fell along party lines, though Majority Leader Chuck Schumer, D., N.Y., joined Republicans in voting against moving forward due to Senate rules that make it easier for him to call up a repeat vote after voting no. Democrats are trying to enact the plan in two parts. The bipartisan infrastructure plan, which amounts to $579 billion in new spending and nearly $1.2 trillion overall, would invest in the so-called hard infrastructure projects.
| Rural Advocate News | Friday July 23, 2021 |
Friday Watch List Markets Headed into the weekend, traders continue to keep a close eye on the latest weather forecasts and any news pertaining to biofuels policy. Friday's only significant reports are July 1 cattle on-feed and July 1 cattle inventory, both scheduled to come from USDA at 2 p.m. CDT. Weather A front moving through the Northern Plains on Friday will bring beneficial rainfall, though showers and thunderstorms will be scattered so there will be areas that are missed. Severe winds and hail will be possible in the storms as well. Other isolated showers will be found around the Great Lakes and in the Southeast.
| Rural Advocate News | Thursday July 22, 2021 |
Lawmakers Introduce Bill to Repeal RFS The National Corn Growers Association strongly opposes a bill introduced in the U.S. Senate this week, referred to as the Corn Ethanol Mandate Elimination Act. NCGA says the legislation would remove the implied conventional biofuel blending requirement from the Renewable Fuel Standard. NCGA President John Linder states, “This bill is ill conceived and would have a devastating impact on air quality, the diversity of our energy supply, fuel prices and rural economies.” Senate Republicans Pat Toomey of Pennsylvania and Susan Collins of Maine, and Democrats Dianne Feinstein of California and Bob Menendez of New Jersey introduced the bill. The lawmakers claim the bill would help reduce carbon emissions from fuels by removing the volume requirements for corn ethanol while leaving in place the volume obligations for advanced and cellulosic biofuels and biodiesel. Senator Toomey states, “The RFS drives up the cost of gas and food, harms our environment, and damages engines,” calling the RFS a “backwards policy.” *********************************************************************************** USDA Announces More Key Staff Appointments Agriculture Secretary Tom Vilsack Wednesday named Daniel Whitley as Administrator of the Foreign Agricultural Service. Whitley most recently served as Acting Administrator for the USDA branch. Prior to that role, he was the Associate Administrator responsible for leading the agency's trade policy and market analysis teams. Whitley began his career with the Economic Research Service, working on market access issues in the World Trade Organization. Dr. Basil Gooden was named Director of State Operations for Rural Development. Gooden recently served as a Visiting Scholar in the Sustainable Food Access Core of the Institute for Inclusion, Inquiry and Innovation at Virginia Commonwealth University. USDA also announced Michael Amato as communications director in the Office of Communications and Marissa Perry as a speechwriter in the Office of Communications. Secretary Vilsack says of the staff additions, "Each is an essential member of our growing team and we are grateful to have them serving in these roles.” *********************************************************************************** Midwest Universities Researching Electric Weed Control Southern Illinois University Carbondale is collaborating on a project testing the use of electricity to control weeds in agricultural settings. Karla Gage, associate professor of weed science and plant biology, is working with researchers Mandy Bish and Kevin Bradley from the University of Missouri on testing The Annihilator 6R30 Weed Zapper. The tool is a patented electric weed control unit mounted to a tractor. The multistate project is funded by the North Central Soybean Research Program with support from the Missouri Soybean Merchandising Council, who purchased the implement, and includes researchers from Iowa State University, University of Nebraska, Kansas State University and Purdue University. Gage states herbicide resistance means “growers are looking for new weed control tools to use.” While electricity is one alternative, another option researchers are exploring is called harvest weed seed control. In that method, weed seeds are managed or destroyed before they go back into the soil seed bank to germinate the following season. *********************************************************************************** Corps Monitors Low Water on Upper Mississippi River, Navigation Continues The U.S. Army Corps of Engineers, St. Paul District, is closely monitoring water levels on the Upper Mississippi River as drought conditions continue across Minnesota, Wisconsin and Iowa. However, the low water is not affecting shipping conditions on the river, and navigation continues. Dan Fasching of the St. Paul District states, "Low flow is exactly the conditions for which the locks were built," adding, "The locks, combined with dredging efforts, are used to maintain navigable depths in the main channel." The lowest flow recorded at Lock and Dam 2, in Hastings, Minnesota, was in 1976, when the flow fell to only 500 cubic feet per second and navigation continued. The current flow at Lock and Dam 2 is around 3,000 cubic feet per second. Earlier this month, water flows were reduced on the Missouri River at Gavins Point Dam in South Dakota due to drought conditions in the Upper Missouri River basin. *********************************************************************************** Restaurant Sales and Prices Increase Consumers ramped up restaurant spending during the first half of 2021. Restaurant sales posted an increase in June, as consumers continued to burn off their pent-up demand for socialization and experiences, according to the National Restaurant Association. Restaurants registered total sales of $70.6 billion on a seasonally adjusted basis in June, according to preliminary data from the U.S. Census Bureau. That was up 2.3 percent from May’s sales volume, and represented the fifth solid increase in the last six months. Driven by the steady gains during the first half of 2021, restaurant sales in June were nearly $4.4 billion, or 6.6 percent above the February 2020 pre-pandemic sales volume of $66.2 billion. However, consumers are also paying more to eat out. Rising food costs caused by inflation are forcing many restaurants to choose between eating the increased costs, raising prices or removing items from their menus altogether. Average menu prices have increased more than four percent in the last year. *********************************************************************************** Apply by August 20 for Farm Bureau Ag Innovation Challenge The American Farm Bureau Federation, in partnership with Farm Credit, is accepting online applications for the 2022 Farm Bureau Ag Innovation Challenge through August 20. The national business competition showcases U.S. startup companies that are providing innovative solutions to either traditional or new and emerging challenges faced by America’s farmers, ranchers and rural communities. Farm Bureau will award a total of $165,000 in startup funds through the competition. Farm Bureau and Farm Credit will select ten startup companies to compete as semi-finalists at the AFBF Convention in January 2022 in Atlanta, Georgia. The ten semi-finalist teams will be announced in October. Entrepreneurs must be Farm Bureau members to qualify as top ten semi-finalists. Applicants who are not Farm Bureau members can join a state Farm Bureau of their choice. Detailed eligibility guidelines, the competition timeline, videos and profiles of past winners, along with the application process, are all available online. Visit fb.org/challenge.
| Rural Advocate News | Thursday July 22, 2021 |
Washington Insider: FTC Addresses Right to Repair The Federal Trade Commission (FTC) is forging ahead on plans to address the issue of "right to repair," one that ag interests have long been raising as an issue. The White House directed FTC to address the issue in the recently issue executive order on competition. Before you think that the FTC has hastily put this effort together, it has been a long time in coming. The FTC effort actually dates back to 2019. That's when the agency held a workshop in July of 2019 entitled, "Nixing the Fix: A Workshop on Repair Restrictions." Even the title suggested the agency was looking to wade into the issue. The 2019 workshop spawned a report the FTC adopted 4-0 called "Nixing the Fix," a report agreed to and announced May 6. That report indicated there was "scant evidence to support manufacturers' justifications for repair restrictions." Again, another sign that the FTC was about the delve into the issue and mostly likely it would not be favorable for those who backed keeping consumers or small repair shops from fixing products. The FTC this week approved a policy statement on the issue on a unanimous vote. "Restricting consumers and businesses from choosing how they repair products can substantially increase the total cost of repairs, generate harmful electronic waste, and unnecessarily increase wait times for repairs," FTC said. "In contrast, providing more choice in repairs can lead to lower costs, reduce e-waste by extending the useful lifespan of products, enable more timely repairs, and provide economic opportunities for entrepreneurs and local businesses." And FTC Chair Lina Khan dove right into the issue when the regulator's open meeting started on Wednesday. "These types of restrictions can significantly raise costs for consumers, stifle innovation, close off business opportunity for independent repair shops, create unnecessary electronic waste, delay timely repairs, and undermine resiliency," Kahn stated. "The FTC has a range of tools it can use to root out unlawful repair restrictions, and today's policy statement would commit us to move forward on this issue with new vigor." And FTC Commissioner Rohit Chopra noted the situation has gone beyond just competition issues. "While we typically view improper repair restrictions through its effects on fair competition, consumers, and small businesses, the Right to Repair movement also showed us how these problems can be matters of life and death," he observed. But Chopra also spoke to the issue as it relates to agriculture. "Farmers relying on tractors and other equipment have been blocked from an open repair market, which can lead to spoiled crops and missing out on critical income," he stated. After the unanimous vote for the policy statement, the FTC said it will "prioritize" investigations into these "unlawful repair restrictions." They want to have the public to "submit complaints and provide other information to aid in greater enforcement of the Magnuson-Moss Warranty Act." Current law does not provide for civil penalties, but the FTC will consider filing suit on the issues. Plus, they will look at rulemaking. They will also "scrutinize repair restrictions for violations of antitrust laws." What do they mean by that? "Certain repair restrictions may constitute tying arrangements or monopolistic practices -- such as refusals to deal, exclusive dealing, or exclusionary design -- that violate the Sherman Act." They will also look at whether repair restrictions run afoul of the Federal Trade Commission Act. Plus, they will work throughout their agency to find expertise to "combat unlawful repair restrictions," and will "closely coordinate with state law enforcement and policymakers to ensure compliance and to update existing law and regulation to advance the goal of open repair markets." While the White House directed the FTC to take action on "right to repair," it certainly appears they were ready to do so whether the executive order came or not. So we will see. Now the focus will be on the FTC and their pledge to act, and no doubt farmers and small repair shops might be some of the first to get in touch with the agency as they look at a machine that will not operate properly due to a situation they have no control over, something which should be watched closely, Washington Insider believes.
| Rural Advocate News | Thursday July 22, 2021 |
Maritime Commission Sets Up Ocean Carriers Audit Program A new audit program and dedicated audit team has been established at the Federal Maritime Commission (FMC) to "assess carrier compliance with the Agency's rule on detention and demurrage as well as to provide additional information beneficial to the regular monitoring of the marketplace for ocean cargo services." The FMC established the "Vessel-Operating Common Carrier Audit Program" July 19 to analyze the top nine carriers by market share relative to compliance on detention and demurrage practices in the U.S., and the FMC may use the information to establish industry best practices. The audit may also focus on "practices of companies related to billing, appeals procedures, penalties assessed by the lines, and any other restrictive practices." FMC Chairman Daniel Maffei said in announcing the audit effort that "if the audit team uncovers prohibited activities, the Commission will take appropriate action. Furthermore, the information gathered by the audit process might lead to changes in FMC regulations and industry guidance if warranted."
| Rural Advocate News | Thursday July 22, 2021 |
Biofuels Battles Continue U.S. biofuel policy continues as a focus in Washington, with Reuters reporting Tuesday the White House has opted to push back the proposed levels under the Renewable Fuel Standard (RFS) for 2021 and 2022 out of political considerations. If the report is on the mark, the Biden administration appears to be trying to find a solution on biofuel policy that is acceptable to both refiners and biofuel supporters. That proved elusive for several years in the Trump administration. But others maintain the recent court rulings are also a factor. Meanwhile, Sens. Pat Toomey, R-Pa., Dianne Feinstein, D-Calif., Susan Collins, R-Maine, and Bob Menendez, D-N.J., have introduced the Corn Ethanol Mandate Elimination Act which would end the 15-billion-gallon conventional (primarily corn-based) ethanol requirement under the RFS. The measure frames the effort in a bid to reduce carbon emissions from transportation fuels by only removing the corn-based ethanol component and leaving the volume obligations in place for advanced and cellulosic biofuels and biodiesel.
| Rural Advocate News | Thursday July 22, 2021 |
Thursday Watch List Markets USDA's weekly export sales is due out at 7:30 a.m. CDT, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. A report on U.S. existing home sales for June and an index of leading indicators are due out at 9 a.m., followed by the Energy Department's weekly natural gas inventories at 9:30 a.m. USDA's monthly cold storage report is due out at 2 p.m. CDT. Traders will remain focused on the latest weather forecasts and any news pertaining to grain exports or biofuels policy. Weather A frontal boundary in the Upper Midwest will continue to produce some isolated showers while another boundary moving through the Northern Plains will do the same. Scattered showers will continue near the Gulf Coast as well while the middle of the country remains dry, benefiting winter wheat harvest. Showers across the north will not have an impact on the ongoing drought.
| Rural Advocate News | Wednesday July 21, 2021 |
USDA Announces Pandemic Assistance for Timber Harvesters and Haulers The Department of Agriculture is providing up to $200 million to provide relief to timber harvesting and timber hauling businesses that experienced losses due to COVID-19. Announced Tuesday, the funding is part of USDA's Pandemic Assistance for Producers initiative. Loggers and truckers can apply for assistance through USDA's Farm Service Agency from July 22 through October 15, 2021. The Pandemic Assistance for Timber Harvesters and Haulers program is administered by FSA in partnership with the U.S. Forest Service. Agriculture Secretary Tom Vilsack states, “the pandemic caused a major disruption for loggers and timber haulers including lack of access to wood processing mills.” The Consolidated Appropriations Act of 2021 authorized assistance for the timber industry. Timber harvesting and hauling businesses that have experienced a gross revenue loss of at least ten percent between January 1 and December 1, 2020, compared to 2019, are encouraged to apply. The maximum amount that a person or legal entity may receive directly is $125,000. *********************************************************************************** Argentina Reducing Biodiesel Blends Argentina is reducing its biodiesel blends, a move that will result in more exports of Argentine soy oils. Argentina is the top soy oil exporter globally, and last week lawmakers approved a measure to allow reductions in the amount of soy-based biofuel mixed into domestically consumed diesel. A government official tells Reuters that because of the reduction, more oil will be exported, adding, “That could impact international soy oil prices, considering the large portion of the international market that Argentina has.” The new law, aimed at guaranteeing the sustainable use of biofuels in diesel and gasoline, foresees a minimum use of biodiesel of five percent, which could drop to three percent, in diesel for sale to the public, from the previous ten percent. Data from the U.S. Department of Agriculture shows Argentine soy oil averaged $1,181 per metric ton last month, versus $1,233 in Brazil and $1,608 in the United States. *********************************************************************************** More Farmers Join Discrimination Suit Against USDA Farmers from Minnesota and North Dakota recently joined a discrimination lawsuit against the Department of Agriculture. The group behind the lawsuit alleges a USDA COVID-19 relief program for socially disadvantaged farmers discriminates based on race. A lead attorney for the case filed in North Dakota tells the Grand Forks Herald, “Their concern is the inequality and discrimination against them just on the basis of their race or skin color.” In similar lawsuits, white farmers argue the program violates their constitutional rights. USDA announced the program in April that includes $4 billion of loan assistance for Black, Hispanic, Native American and Asian American farmers. The funds are on hold via court injunctions, and Agriculture Secretary Tom Vilsack defends the program as addressing “longstanding racial equity issues within the department and across agriculture.” The attorney representing North Dakota farmers claims the federal government has two options, either amend the program to allow aid to all farmers, or to disband the program entirely. *********************************************************************************** Corteva Agriscience Leveraging Mobile Robots to Walk Row Crops Corteva Agriscience is working to take agricultural robotics to new heights using a Spot robot from Boston Dynamics. The company is among the first in agriculture to use this platform to ‘walk’ between rows of corn, sunflowers and other crops. The robot has potential applications in field testing of both new seed and crop protection solutions with its ability to autonomously collect data, support the application of new crop protection discovery molecules, and inspect operations. Spot’s many capabilities can help Corteva better understand complex phenotypes to support its research and development selection processes. Spot robots automate sensing and inspection, capture data, and explore without boundaries, making operations safer, more efficient and predictable. Corteva is also collaborating with Trimble for the initial proof-of-concept and to integrate precise GPS guidance technologies with the platform. The jointly developed solution combines the mobility of the Spot robot with Trimble's autonomous navigation capabilities and Corteva’s approach to helping farmers overcome agriculture’s most pressing challenges. *********************************************************************************** Chicken Marketers Urged to Innovate to Meet Needs Emerging from the Pandemic With an estimated 20 percent of the workforce working at home beyond 2021, there will be 30 million meal occasions daily that used to be lunches consumed away from home. According to research presented at the 2021 Chicken Marketing Summit this week, the research presents an unprecedented opportunity for innovation for the poultry industry. The National Chicken Council and WATT Global Media presented the results of a study that focused on anticipated U.S. consumer behavior post-pandemic to identify opportunities for chicken to gain market share in home food preparation and the upcoming foodservice revolution. The results found 91 percent of respondents plan to continue eating fresh chicken at home, and 30 percent said they will eat more chicken than pre-pandemic. The National Chicken Council says the industry needs innovation to meet evolving needs and emerging occasions as more consumers anticipate doing more meal prep at home post-pandemic. That includes leveraging e-commerce platforms for food on demand. *********************************************************************************** American Pistachio Growers Kicks Off New Facebook Live Series American Pistachio Growers, armed with data that pistachios are packed with many benefits for active bodies and minds, is inaugurating a new 2021-22 Facebook Live Series. The series, Friday Fuel-Up, seeks to engage some of the most energetic and interesting people in the world with the question, What fuels you? The monthly series, which debuts August 6 and continues the first Friday of every month, is hosted by nutritionist Dr. Mike Roussell (Roo-cell), a noted author and nutrition advisor to Men’s Health Magazine. Guests include a NASA nutritionist, the Denver Bronco’s nutritionist and an Olympic gold medal athlete. 2022 guests include Iditarod champion Dallas Seavey, an international women's soccer star and pro quarterback Josh Allen. Audiences can join the conversations live starting August 6 on the American Pistachios Facebook page. Programs will begin at 10 am Pacific on the first Friday of every month, and also be made available on Instagram and YouTube.
| Rural Advocate News | Wednesday July 21, 2021 |
Washington Insider: USDA Aid Announcements Keep Coming USDA has announced still-more aid for agriculture or agriculture-related sectors, this time announcing that it will be sending out aid to the U.S. timber and logging industry that was hurt by the pandemic. USDA Secretary Tom Vilsack announced that up to $200 million in aid would be made for U.S. timber harvesters and haulers that were negatively impacted by the pandemic via what is called the Pandemic Assistance for Timber Harvesters and Haulers (PATHH) program. The funding for the effort came via the 2021 Consolidated Appropriations Act that was approved in December 2020. That measure was a COVID relief effort including payments to several components of U.S. agriculture. The timber harvesters and haulers would be eligible for the aid if they had a loss in gross revenue of at least 10% between from January 1-December 1, 2020, compared with the same period in 2019. To be eligible, the business must have at least 50% of its gross revenue coming from cutting or transporting timber or processing wood onsite at the forest. Two payments are possible, with the first at 80% of the revenue decline with a second payment possible if there are still additional funds left over. And, there will be a per-person/entity payment limit of $125,000. Vilsack commented that the two payment installments allow USDA to adjust if there is more demand or less demand for the money available. But Vilsack said the $200 million was picked by lawmakers as "place to start." It's not clear if there is more than $200 million requests for payment whether USDA would opt to put more money into the effort. Given that the signup runs July 22-October 15, funds will not arrive until later this year. That seems to be the trend with COVID aid efforts the past few months. Make a splashy announcement of dollars that are coming while the actual funds will not appear in the bank accounts of those requesting the help until later. Vilsack said the department has announced aid totaling $13 billion. But he didn't say how many of those dollars have indeed been provided to producers. USDA's effort announced last week to provide funds to hog and poultry producers who owned their livestock but were forced to depopulate them are hopefully going to see those dollars by the end of the year. And there are still funds that haven't even been announced like the timber and livestock aid. Those efforts include contract pork raisers who still have heard no word from USDA even as the agency has said that aid to contract poultry growers is on the way or has been made. And there is the $700 million in aid to biofuel producers that has been announced, but not in enough detail to give an idea when those funds will be coming. And then there is aid for dairy farmers. USDA in June announced that $400 million would be offered up to dairy farmers via the Dairy Donation Program (DDP). But that aid isn't ready to go yet either -- the regulation for the effort is still under review at the Office of Management and Budget (OMB). And there are supplemental payments to small and medium dairy farmers under the Dairy Margin Coverage (DMC) program that USDA said would total $568 million. Those, too, need some regulatory action on the part of USDA and nothing has been sent over to OMB as of yet. Plus, recall the much-talked-about dairy aid that was expected to be announced when Vilsack was to visit Wisconsin in late-June. He didn't go and neither did the aid announcement. And no one is talking about the aid at this point. So there seems to be a pattern of getting aid announced faster than getting the dollars in the hands of those affected by the pandemic. That is not totally uncommon, but it seems to be the norm rather than the exception at this point. So we will see. The tally of money that is coming continues to rise, and the process of getting that from the announcement stage to the bank accounts of those affected is a process that needs to be watched closely, Washington Insider believes.
| Rural Advocate News | Wednesday July 21, 2021 |
More Soyoil Expected to Come on the World Market A new law in Argentina expected to be signed by the country's president yet this month would set a minimum use of biodiesel of 5% and that could drop to 3% relative to diesel fuel sold to the public. Currently, Argentine diesel fuel is 10% biodiesel. The law is aimed at sustainable use of biofuels in diesel and gasoline. The current biodiesel level of 10% uses about 1 million tonnes of biodiesel annually, and industry officials indicate the reduction would mean more supplies would be available for export. "Lowering the blend in Argentina means higher bean-oil exports," said Luis Zubizarreta, head of Argentina's Carbio biofuel industry chamber, according to Reuters.
| Rural Advocate News | Wednesday July 21, 2021 |
Report Says Biofuel Plans Pushed Back The already late announcement of 2021 biofuel (and 2022 biodiesel) levels under the Renewable Fuel Standard (RFS) and those for 2022 biofuels are not apparently going to come soon, according to a report from Reuters. The news service reported that the White House has pushed back the proposed rule for the RFS levels out of "political concerns." Expectations had been that they would be announced this month and finalized by the statutory deadline of November 30. The 2021 levels were not even proposed in 2020 and the deadline for those was already missed. In fact, the proposed levels for 2021 and 2022 have not even been sent to the Office of Management and Budget for their review. While the report suggests political considerations are keeping the plan on hold, there have been several court decisions now that could also have affected the proposed levels. But no matter the case, it appears the proposed marks are not going to emerge yet this month.
| Rural Advocate News | Wednesday July 21, 2021 |
Wednesday Watch List Markets The U.S. Energy Department's weekly report of energy inventories, including ethanol production, is set for 9:30 a.m. CDT and is Wednesday's only official report. Traders will continue to pay close attention to the latest weather forecasts and any news of export sales that comes up. Any news pertaining to U.S. renewable fuels mandates will also turn heads with rumors circulating late Tuesday. Weather Scattered showers will continue near the Gulf Coast Wednesday. A frontal boundary and weak system will produce some isolated showers for the Northern Plains and Upper Midwest as well, but coverage and amounts will be low. Dryness elsewhere will help progress for winter wheat harvest and saturated soils to drain.
| Rural Advocate News | Tuesday July 20, 2021 |
Animal Ag Organizations Launch Protein PACT U.S. animal agriculture groups Monday announced the Protein PACT. The coalition is the first joint initiative designed to accelerate momentum and verify progress toward global sustainable development goals across the animal protein sector. The Protein PACT was submitted to the UN Food Systems Summit as a sustainability game changer, and sustainable livestock and poultry production will be featured in a side event at the upcoming Food Systems Summit ministerial in Rome next week. Alongside the debut of the Protein PACT, the North American Meat Institute released its draft sustainability framework and is soliciting public comments to set transparent baselines and measure progress toward sustainability goals. Meat Institute President and CEO Julie Anna Potts states the framework "encompasses more than 100 metrics developed through extensive collaboration with sustainability experts, supply chain partners, and Meat Institute members.” Other members of the Protein PACT include the National Pork Board, The U.S. Meat Export Federation and the National Corn Growers Association. *********************************************************************************** Deadline Fast Approaching for Conservation Reserve Program General Signup The Department of Agriculture reminds producers the signup deadline for the Conservation Reserve Program current general signup is fast approaching. Eligible producers must submit their offers by July 23, 2021. USDA’s Farm Service Agency made several changes to CRP to make it more appealing to all producers, including those who are historically underserved, beginning, and veterans. FSA added incentives to encourage producers to include climate-smart practices in their operations to increase natural resource and environmental benefits. FSA Administrator Zach Ducheneaux ((DOO-shu-know) says to farmers, “Explore the increased payment rates and new incentives for climate-smart agricultural practices to see if elements of the revamped CRP fit your operation.” USDA’s goal is to enroll up to four million new CRP acres by raising payment rates and expanding the incentives offered under the program. CRP is capped at 25 million acres for fiscal year 2021, but the cap will gradually increase to 27 million acres by fiscal year 2023. *********************************************************************************** Rabobank, TELUS Agriculture Purchase Conservis Rabobank and TELUS Agriculture Monday announced the acquisition of Conservis, a company that integrates farm technologies into one streamlined management interface. Together, Rabobank and TELUS Agriculture bring the expertise, experience, and global presence to further develop the Conservis farm management platform. The platform helps solve farmers' data challenges, empower their decision-making, and create sustainable, profitable opportunities with other contributors in the food value chain. Conservis enables family and institutional farms to organize data from different sources, eliminate error-prone manual entries, create business plans, and confidently manage costs, production and marketing throughout the entire year. The companies say that Conservis customers have a solution that aggregates a farm's data into a single resource. Since 2018, Rabobank’s Rabo AgriFinance has been a development partner for Conservis. Rabobank Managing Board member Berry Marttin states, “we look forward to partnering with them and leveraging their team's expertise and technological integration across the food system." *********************************************************************************** Pivot Bio Raises $430 Million to Replace Synthetic Fertilizers in Agriculture Pivot Bio Monday announced the close of a $430 million Series D funding, bringing the total equity raised to more than $600 million. In venture capital terminology, the term Series D Funding refers to the fourth stage of a financing cycle of new business growth. The funding will fuel the company's release of products focused on replacing the $60 billion of synthetic nitrogen fertilizer sold each year to sustain corn, wheat, and rice. Pivot Bio says synthetic nitrogen fertilizer supports the demands of today's global food system. However, the company calls synthetic nitrogen fertilizer inefficient, expensive for farmers, and it contributes to seven percent of global greenhouse gas emissions, depletes soils, and harms water supplies and fisheries. Since the company introduced the industry's first commercially available microbial nitrogen in 2019, Pivot Bio has replaced synthetic nitrogen on more than one million crop acres in 2021 alone, representing more than 300 percent growth year-over-year and unprecedented agricultural product adoption. *********************************************************************************** OPEC to Raise Oil Production to Pre-COVID Levels The nation's average gas price increased 1.3 cents per gallon from a week ago to $3.16 per gallon. But relief may be on the way with oil production increases coming. The national average now stands 10.2 cents higher than a month ago and 98.0 cents higher than a year ago. The national average price of diesel increased 2.0 cents in the last week and stands at $3.27 per gallon. U.S. gasoline demand rose slightly last week across most of the nation. Nationally, weekly gasoline demand rose 1.8 percent. OPEC, however, plans to increase production monthly until 2022, reaching pre-COVID levels. Patrick De Haan, head of petroleum analysis for GasBuddy, says, "It’s a positive development in light of U.S. gasoline demand which rose nearly two percent last week, which should act as a loose ceiling on the price of oil.” With the announced production increases, fuel prices are closer to seeing a peak in national averages. *********************************************************************************** Farm Journal Announces Easton Corbin to Headline #FarmON Benefit Concert Farm Journal recently announced country music star Easton Corbin will headline the live 2021 #FarmON Benefit Concert during Farm Journal Field Days. Proceeds from this second annual benefit concert will go to the National FFA Foundation. Highlights from the concert will air in prime time on Monday, September 20, 2021, from 7 to 8 p.m. CDT, on RFD-TV and stream on other online and social networks. Farm Journal President Charlene Finck states, “This concert not only serves as the grand finale event of our Great American Farm Show experience but also as a thank you to farmers, ranchers and everyone who keeps our food system moving forward.” The #FarmON movement is fueled by the engagement of farmers and ranchers everywhere and will be a prominent part of the Great American Farm Show, which includes the 29th annual Pro Farmer Crop Tour and Farm Journal Field Days. For more information about the #FarmON Benefit Concert and Farm Journal Field Days, go to www.farmjournalfielddays.com.
| Rural Advocate News | Tuesday July 20, 2021 |
Washington Insider: Border Carbon Tax Introduced Sen. Chris Coons, D-Del., and Rep. Scott Peters, D-Calif., have introduced what is called the FAIR Transition and Competition Act of 2021, a plan that would address costs faced by U.S. businesses as they seek to reduce greenhouse gas (GHG) emissions. "Despite the leadership of many U.S. businesses in reducing harmful greenhouse gas emissions, they will be left at a disadvantage as trading partners consider levying carbon-related tariffs on certain goods," said a release from the two lawmakers. "The FAIR Transition and Competition Act of 2021 will establish a border carbon adjustment on carbon-intensive imports to account for the cost incurred by U.S. businesses to comply with laws and regulations limiting greenhouse gas emissions." So what is a border carbon adjustment? A tax. It will be a tax levied on imports that the lawmakers say is "imported pollution." The lawmakers said it would address the "carbon leakage that undermines urgent climate action." A summary of the plan said it would base the import fee on the "domestic environmental cost incurred and will initially cover goods that are both carbon-intensive and exposed to trade competition, including aluminum, cement, iron, steel, natural gas, petroleum, and coal." But the legislative language also includes that there could be additional products added if there is "reliable data" on the GHG emissions of a product and that it is "in the interest of the United States" to include the product as one where a border tax. There could be some interesting developments linked to the "fee" or tariff or "tax," as they note that under the law, a "domestic environmental cost incurred by businesses" would be developed. The effort would start in 2023 with several determinations required to be made by the U.S. government, primarily by the Environmental Protection Agency (EPA). The legislation divvies up the funds received via the tax with 50% going to grants to states and 50% to be used for "high-impact research, development, demonstration, technology transfer, commercialization, and export of technologies that reduce or eliminate greenhouse gas emissions." That could become a relatively broad definition that firms will eye to use for research efforts. Those grants would start in 2025. In a bid to no doubt attract support in certain sectors, the grant portion would be aimed at providing job training and worker transition assistance "with priority given to workers and former workers in fossil fuel-related industries." That is aimed at getting the support from lawmakers from states that currently produce oil, natural gas and coal. And there's even a mention to generate support from agriculture, as the funds would be used to implement plans like climate-smart infrastructure and "agricultural climate solutions" would be build "climate resilience and support carbon sequestration." The grants to states would be set by an amount that takes into account the percent of the population of the U.S. living in that state, the vulnerability of the state to climate change and the percent of the total workforce employed in fossil-fuel-related industries that are employed in a state. The legislation also lists several "slow-onset climate hazards," which they define as sea level rise, desertification, biodiversity loss, increasing temperatures, ocean acidification, soil salinization, drought, land and natural resource degradation, glacial retreat or reduced snowpack and related impacts, and permafrost thaw. This is aimed at funding the transition to address climate change. But what is not covered by the legislation is what happens if products exported by the U.S. are subject to similar taxes by other countries. The U.S. has also warned that if a border carbon tax is put in place by other countries, the U.S. may opt to take trade action against those countries. There is the potential too that products outside those covered by this border fee could be hit by retaliatory actions by an importing country, negatively impacting those exports from the U.S. So we will see. This effort seems like one that could be loaded with the infamous "law of unintended consequences" and therefore needs to be watched very closely as this process unfolds, Washington Insider believes.
| Rural Advocate News | Tuesday July 20, 2021 |
China Continues to Focus on Commodity Hoarding, 'Malicious' Speculation Chinese authorities are continuing to focus on commodity prices, with the country's Ministry of Industry and Information Technology the latest to issue statements about the supply of bulk commodities. Reuters reported that the agency was focusing on the issue. "We will coordinate with relevant departments to ensure the stability of bulk commodities supplies and prices... guide upstream and downstream players in the industrial chain to stabilize production, supply and marketing of raw materials," ministry spokesperson Huang Libin told a press conference on Friday, according to a transcript on the ministry's website. "In responding to the risk of the market's price fluctuation, we must resolutely crack down on hoarding, malicious speculation, and the bidding up of prices." Other Chinese agencies have focused on commodity prices and have announced efforts to rein in commodity speculation as the country seeks to temper price increases.
| Rural Advocate News | Tuesday July 20, 2021 |
Impact Unclear From Court Ruling On RFS In Favor Of Environmentalists The U.S. Court of Appeals for the District of Columbia on Friday ruled in favor of environmental groups who challenged EPA's conclusion that the Renewable Fuel Standard (RFS) levels for 2019 did not pose a danger to the habitats of endangered species. The court said EPA violated the Endangered Species Act by not consulting with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service before setting the 2019 biofuel levels. The ruling orders EPA to reassess the 2019 levels. But the court also rejected claims by the biofuel industry that EPA set the 2019 levels too low and a claim by refiners that the levels were set too high. It is still not clear what impact the ruling will have and history has shown it may not be a quick turnaround on a reexamination of the issue by EPA.
| Rural Advocate News | Tuesday July 20, 2021 |
Tuesday Watch List Markets A report on June U.S. housing starts is due out at 7:30 a.m. CDT Tuesday. Traders continue to pay close attention to the latest weather forecasts and will pause at 8 a.m. CDT to see if USDA has an export sale announcement. After Monday's risk-off selling, coronavirus infection counts will get more attention again. Weather A lingering frontal boundary across the South and Southeast will continue to produce scattered showers Tuesday. Another near the U.S.-Canada border will produce some isolated showers as well. The middle of the country should stay dry, benefiting the continued winter wheat harvest.
| Rural Advocate News | Monday July 19, 2021 |
Rural Mainstreet Index Stays in Growth Territory Creighton University’s Rural Mainstreet Index stayed above growth neutral for the seventh month in a row. The monthly survey of bank CEOs in areas that rely on agriculture and energy shows that the June index fell to a still strong 70.0 from May’s record high of 78.8. The index ranges from 0 to 100, with growth neutral at 50.0. Almost half of the bank CEOs say their local economy expanded between May and June. Dr. Ernie Goss, Mainstreet Index chief, says, “Strong grain prices, the Federal Reserve’s record-low interest rates, and growing exports have underpinned the Rural Mainstreet economy. Even so, current rural economic activity remains below pre-pandemic levels.” While the index number is still solid, several bank CEOs raised future concerns this month. Steve Simon of South Story Bank in Iowa says, “Continued dry conditions will start to affect markets and crops soon.” Bankers were asked to list what they thought would be the greatest threat to 2021-2022 bank operations. Approximately one quarter said a downturn in farm income, and another one-in-four named rising government regulation. For the ninth straight month, the farmland price index also advanced significantly above growth neutral, coming in at 75.9 in June. *********************************************************************************************** Interest Rates for Operating Loans Rise Slightly Interest rates on agricultural loans made by commercial banks increased slightly for some types of lending. However, the Federal Reserve of Kansas City says rates stayed historically low through the first half of this year. The average rate on non-real estate loans was about 30 basis points higher than the all-time low reached at the end of 2020. The rise was largely consistent across all types of loans. In contrast, the average rates on farm real estate loans continued to decline and marked another historic low. Rates also remain comparatively low at the largest commercial banks, and those lenders offered a sizable discount for the lowest-risk loans, while the smaller lenders continued to provide similar accommodation regardless of the risk. The Fed’s report says despite the slight increase in rates for operating loans, the historically-low-interest rate environment and muted demand for agricultural lending suggest that interest expenses have remained low relative to recent years. Profitability in the sector also continued to be supported by strong prices for most major commodities. The slight decline in financing costs for farm real estate may also provide ongoing support to farmland values. ********************************************************************************************** Germany Discovers ASF in Domestic Hogs Late last week, the first cases of African Swine Fever in domestic hogs appeared in Germany. Reuters says the ASF discovery could make negotiations about lifting existing import bans with China and other major buyers more difficult. However, experts predict no major impact will hit the German pork market right away. The disease was confirmed last Friday on two small farms in the same location where more than 1,200 cases have been found in wild boar. It likely won’t have a major impact on the country’s pork market because Germany’s exports are already subject to bans from many countries outside of the European Union. China and many other pork buyers banned German pork imports back in September of 2020 after the first ASF case was confirmed in wild animals, but German pork sales to other members of the EU continued. “The discovery of ASF on a German farm doesn’t change the overall situation that much with import bans already in place by China and other importers,” says Justin Sherrard, Global Strategist for Animal Protein at Rabobank. “They cannot restrict trade any further when trade is already stopped by other countries.” *********************************************************************************************** Groups Ask USTR to Not Threaten Vietnam with Tariffs The American Soybean Association and 70 other business groups expressed concern to U.S. Trade Representative Katherine Tai regarding proposed tariffs on Vietnam. The imposed tariffs would respond to a pair of Section 301 investigations initiated under the Trump administration, alleging “currency manipulation” and “illegal timber practices.’ In a letter sent last week to the ambassador, the organizations strongly urged the USTR not to use tariffs in response to either of those investigations. The letter cited the U.S. Treasury Department’s congressionally mandated “Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States,” which says there is “insufficient evidence” that Vietnam manipulates its exchange rate. Concerning Vietnam’s questioned logging practices, the groups feel an investigation by the Animal and Plant Health Inspection Service under the Lacey Act would be the most appropriate tool to use and not a Section 301 investigation. Vietnam is a top ten market for U.S. soy exports and would be a potential target for retaliation from Vietnam. ********************************************************************************************** Corn and Soybean Export Sales Drop The USDA says export sales of corn and soybeans both plunged, while wheat sales rose during the week ending on July 8. Corn sales during the week totaled 138,800 metric tons, a 20 percent drop from the previous week. Still, that’s a 31 percent improvement from the prior four-week average. Japan was the biggest corn buyer at 191,500 metric tons. Sales for the 2021-2022 marketing year that begins on September 1 totaled just over 133,000 metric tons. Exports for the week dropped 18 percent to 1.06 million tons. Soybean sales dropped 66 percent to 21,700 metric tons during the week ending July 8. That’s also down 76 percent from the previous average. Indonesia was the top soybean buyer at 61,500 metric tons. Sales for the next marketing year came in at almost 291,000 metric tons, while exports dropped 11 percent to 197,700 metric tons. Wheat sales were the more positive number, rising 46 percent week-to-week and 44 percent from the five-year average. Unknown countries were the top buyers at 132,700 metric tons of wheat. Exports for the week dropped five percent week-to-week to almost 366,000 metric tons. ********************************************************************************************** NCBA Making Free Trade Show Admission Available for FFA Members The yearly Cattle Industry Convention and NCBA Trade Show bring together producers and their families from across the country. This year’s event is August 10-12 in Nashville, Tennessee, and it will also provide an opportunity for the industry’s youth to gather, learn, and share ideas. To encourage young people to participate, Culver’s is sponsoring “FFA Day” at the NCBA Trade Show on Thursday, August 12. The first 250 FFA members to register will get complimentary NCBA Trade Show admission, courtesy of Culvers. The restaurant chain will also share their custard during a “blue jacket social” for FFA members and alumni on August 12. “The future of the industry depends on the next generation, so we encourage FFA members to join us in Nashville,” says Kristin Torres, NCBA executive director of meetings and events. “The NCBA Trade Show offers so many educational and networking opportunities that it is important for young people to attend and gain valuable experience.” FFA members should use the code “FFACULVERS” to get free admission. Those members who don’t get a chance at the free tickets can still get a significantly discounted rate of $30 per person.
| Rural Advocate News | Monday July 19, 2021 |
Washington Insider: US, China Dispute Still Percolating The dispute between the U.S. and China at the World Trade Organization over China's implementation of their tariff-rate quotas (TRQs) on grain imports continues to linger at the world trade body. The U.S. originally filed a complaint at the WTO over China's TRQ operation which they maintained restricted U.S. grain shipments to China. The WTO sided with the U.S. in 2019 and China did not challenge the WTO ruling. The dispute centered on China's WTO 2001 commitment to set TRQs for wheat, corn and rice that impose a lower tariff rate to imports up to a certain quantity. China did not appeal the ruling and agreed to bring its measures into WTO compliance by June 29, 2021 However, the filing Friday at the WTO Dispute Settlement Body (DSB) indicated the U.S. believes China has not brought their program in line with that WTO ruling from 2019. “United States requests authorization from the DSB to suspend concessions or other obligations with respect to China at an annual level based on the level of the nullification or impairment of benefits accruing to the United States under the covered agreements from the failure of China to implement the recommendations of the DSB,” the U.S. said. The U.S. said their sought-after retaliation was based on a formula “that relates to the value of the unfilled portion of any tariff-rate quota (TRQ) for wheat, rice, or corn, as set out in China's WTO Schedule.” With June 29 having come and gone, the U.S. said China “failed to bring its measures into compliance with its WTO obligations within that period. The parties have not reached agreement on compensation.” That means, the U.S. said, they are now entitled to take countermeasures against China over the situation. The U.S. has previously maintained that the unfilled portion of the TRQs prevented some $3.5 billion in U.S. exports to China. However, China maintained they have met the requirements of the WTO ruling and the two sides have agreed to let the U.S. continue to evaluate its actions to come into compliance. Indeed, China had failed to fill its TRQs for the three commodities for several years leading up to the U.S. complaint. And only in the past two years have they exceeded their TRQ levels for corn. China also committed as part of the Phase One agreement between the U.S. and China that they would import levels of commodities that would suggest the country was going to exceed their TRQ levels. But it is not clear that they have done so yet for certain other than corn. So we will see. This is the latest in what has been rising tensions between the U.S. and China since the Biden administration took office and this could have yet another impact on trade between the two sides and should be watched very closely as it unfolds, Washington Insider believes.
| Rural Advocate News | Monday July 19, 2021 |
USDA Seeks Input From Public On Program To Expand Meat Processing USDA on Friday published a notice in the Federal Register seeking public input on a host of issues related to their announcement of deploying $500 million in a combination of grants, loans and technical assistance to expand U.S. meat processing capacity. The agency has set an August 30 deadline for those to provide information on scores of questions posed by USDA on the effort. USDA is seeking input on “how to invest an estimated $500 million of American Rescue Plan funds to improve infrastructure, increase capacity, and hasten diversification across the processing industry.”
| Rural Advocate News | Monday July 19, 2021 |
Moffitt Pledges to Reach Out to Stakeholders if Approved for USDA Post Members of the Senate Agriculture Committee were repeatedly assured by Jennifer Moffitt, nominated to be USDA undersecretary for marketing and regulatory programs, that she would study issues under her purview carefully and seek input from a host of stakeholders in making decisions and that she would taken an “inclusive approach to solving problems.” Moffitt has been a walnut farmer in California and served as an undersecretary at the California Department of Food and Agriculture. On the coming regulations ordered by President Joe Biden to update the Packers & Stockyards Act, Moffitt said she would reach out to stakeholders across the food supply chain and “weigh those complexities, and really understand what it means for farmers and ranchers,” promising to take “a nuanced approach” to the rulemaking. She also indicated it was important to “ensure that the food system and the meat system is fair and competitive.” There were no specifics offered by Moffitt relative to several issues, a situation which can be typical for nominees to various government posts that require Senate confirmation and it is a pattern seen with many other appointees to such roles across the Biden and prior administrations.
| Rural Advocate News | Monday July 19, 2021 |
Monday Watch List Markets It is fair to say traders will be examining the latest weather forecasts Sunday and early Monday in the ongoing effort to guess fall yields. USDA's weekly grain export inspections report is due out at 10 a.m. CDT Monday, followed by the Crop Progress report at 3 p.m. Weather An old frontal boundary stalled around the South and Southeast will create plenty of scattered showers and thunderstorms on Monday. There could be some isolated thunderstorms across eastern North Dakota and northwest Minnesota as well, while most other areas remain dry.
| Rural Advocate News | Friday July 16, 2021 |
Trade Representative Tai Travels to Wisconsin U.S. Trade Representative Kathrine Tai traveled to Wisconsin Thursday to discuss how trade can help farmers in the state. Joined by Representative Ron Kind, a Wisconsin Democrat, the pair toured Hamburg Hills Farm and hosted a roundtable with farmers. The roundtable focused on how trade policy can better help the farming and agriculture industry and its workers. The visit followed a top Ag lawmaker's visit. Earlier this week, Ranking Member of the House Agriculture Committee, Glenn GT Thompson, also visited Wisconsin. Meeting with Wisconsin Farm Bureau, topics included processing capabilities and commodity prices, trade, retaliatory tariffs, rural broadband, labor and regulations for hemp. Thomson also toured various Wisconsin farms and held a dairy roundtable discussion with farmers. Topics during the roundtable conversation covered milk pricing and the need for transparency, updates to the Federal Milk Marketing Orders, dairy export opportunities, labor shortages, access to whole milk in schools and milk labeling enforcement by FDA. *********************************************************************************** USDA Awards $12 Million in Farm to School Grants The Department of Agriculture is investing $12 million in Farm to School Grants this year, announcing awards to 176 grantees, the most projects funded since the program began in 2013. The department is also releasing new data demonstrating the recent growth of farm-to-school efforts nationwide. Nearly two-thirds of school districts and/or local entities responsible for school meals participated in farm-to-school activities during school year 2018-2019, more than half of which began within the past three years. In school year 2018-2019, school districts purchased nearly $1.3 billion in local fruits, vegetables, and other foods, totaling approximately 20 percent of all school food purchases. This year's Farm to School Grants will help expand the access to fresh, local foods and hands-on agricultural learning for children across 45 states and the District of Columbia. Agriculture Secretary Tom Vilsack states, "Not only will this give children more nutritious food options in school, it supports local agriculture economies.” *********************************************************************************** Program Increases Beef Quality and Consumer Confidence As the Beef Checkoff celebrates its 35th anniversary, the National Cattlemen’s Beef Association highlights the successful promotion and research programs that drive the demand for beef. The Beef Quality Assurance program has improved beef quality and increased consumer confidence for more than 30 years. Managed by NCBA, the Checkoff-funded voluntary BQA program ensures U.S. beef is produced under stringent animal care standards to provide safe, high-quality meat. The BQA program trains farmers and ranchers on best practices and cattle management techniques to ensure their animals and the environment are cared for within a standard set of guidelines across the U.S. beef industry. With more than 85 percent of the beef supply in the U.S. today coming from a BQA certified farmer or rancher, consumers should have the utmost confidence in the beef they purchase, according to NCBA. BQA programs have evolved to include best practices around record keeping and protecting herd health, which can result in more profits for producers. *********************************************************************************** Soy Checkoff Investments Work to Increase Profitability for U.S. Soybean Farmers The 78 farmer-leaders of the United Soybean Board approved new projects designed to drive innovation, increase value and create additional demand for U.S. soybeans. The goal ultimately is to increase profitability for U.S. soybean farmers. During the organization's summer board meeting this week, leaders approved 181 new checkoff-funded projects with a total budget allocation of $78 million, for the 2022 fiscal year, starting October 1, 2021. Projects are considered and reviewed based on alignment with the checkoff’s overall objectives for supply, marketplace and demand across the target areas of soybean meal, oil and sustainability. USB CEO Polly Ruhland states, “U.S. soybean farmers remain steadfast and resilient in their pursuit to produce sustainable, high-quality soybeans that are preferred by customers.” Specific projects focus on supply oil, recouping lost demand in the edible soy oil market and expanding to markets elsewhere by supplying high oleic soybean oil. Other top priorities include marketplace sustainability and soybean meal demand. *********************************************************************************** USDA Announces Southeast Alaska Sustainability Strategy The Department of Agriculture Thursday announced a new Southeast Alaska Sustainability Strategy. The strategy seeks to support a diverse economy, enhance community resilience, and conserve natural resources. Through this strategy, USDA will consult with Tribes and Alaska Native corporations, and engage partners and communities in a collaborative process. USDA will invest approximately $25 million in financial and technical resources in sustainable opportunities for economic growth and community well-being and identify priorities for future investments. Agriculture Secretary Tom Vilsack has directed leaders of multiple USDA agencies, including the Forest Service, the Natural Resources Conservation Service, and Rural Development, to consult with Tribes and work together to identify priorities for investment. Vilsack says, “This approach will help us chart the path to long-term economic opportunities that are sustainable,” for the region. USDA’s actions are intended to support local economies and preserve Alaska’s expansive old growth temperate rainforest, a resource that is increasingly rare globally. *********************************************************************************** America’s Conservation Ag Movement Supports Indiana Conservation Event Indiana farmers are invited to participate in a free farm machinery and conservation ag event later this month. “Conservation Tillage and Technology - At the Intersection,” is set for Thursday, July 29, at a farm near Flora, Indiana. America’s Conservation Ag Movement, one of America’s largest public-private partnerships committed to conservation agriculture and sustainability, is working on the local level to bring this event to producers in the Wabash watershed area. Producers are encouraged to attend live in-field demonstrations and conversations on topics, including farmer-led conservation partnerships, strip-tillage demonstrations, planter setups for no-till and green planting, and an update from Purdue Agronomy. The event is free and hosted by Oyler’s Farm. Support for the event comes from the foundational partners of America’s Conservation Ag Movement, The Nature Conservancy, Carroll County Soil & Water Conservation District, Farm Journal Foundation, USDA’s Natural Resources Conservation. To learn more or to register for the event, visit farmjournal.swoogo.com/Wabash.
| Rural Advocate News | Friday July 16, 2021 |
Washington Insider: The WTO and Fisheries The World Trade Organization (WTO) has seen little activity in terms of progressing on key issues, but the areas of fisheries subsidies may now be one of the areas where an agreement could be at hand. The world trade body has been beset by a lack of agreement on a host of issues over the past several years it seems, with agricultural issues and the matter of the Appellate Body also seeing no unity among members. On the latter, the U.S. has blocked the naming of new members to the Appellate Body, keeping it from being able to hear any appeals on WTO dispute settlement body decisions. The Trump administration started the block, which brought the Appellate Body to a screeching halt in December when the terms of members of the appeals group expired. And while there were hopes around the globe that with the Biden administration now in place, the U.S. might be willing to go along with a compromise plan that has been backed by some 120 members of the WTO. But so far, U.S. Trade Representative Katherine Tai has not lifted the U.S. block. She has said that reforms to the Appellate Body are indeed needed. The Trump block emerged on the contention that appeals body members were making law and not just deciding cases on their own merits. So far, the U.S. has not said that was a wrong stance to take. Some of the optimism for progress on that and other topics at the WTO came earlier this year when a new chief of the WTO was chosen in the form of Director-General Ngozi Okonjo-Iweala of Nigeria. That was one change the U.S. eventually backed. The Trump administration did not support her to lead the WTO, but the Biden team shifted gears and threw their support behind her, making her the first woman and the first woman of color to lead the WTO. As she took to the helm of the trade body, she expressed hope that an agreement on fisheries subsidies could be reached ahead of the upcoming ministerial meeting of the WTO in November. Governments provide approximately $35 billion in fisheries subsidies annually, with the vast majority going to large-scale, industrial fishing fleets, according to a piece in the Washington Post penned by Kristen Hopewell, an associate professor in the School of Public Policy and Global Affairs at the University of British Columbia. "Countries that have depleted their own fish stocks are using these subsidies to allow their fleets to travel vast distances to exploit fisheries resources in distant waters," Hopewell said. "By some estimates, more than half of all fishing activity in the high seas would not exist without subsidies." Fisheries subsidies have long been a contentious issue, one that has not come to a solution in years despite repeated tries at ironing out the differences on the issues. While Okonjo-Iweala made it a priority when she took over in April, just this week she expressed disappointment at the lack of progress and even openly stated that maybe an agreement by the November ministerial would not be possible. Perhaps that somber tone was enough to shift the dynamic on the issue as trade ministers suddenly Thursday blessed a negotiating text on curbing fisheries subsidies, a move that will now allow negotiators to move to "line-by-line" text-based talks. "Today we were looking for political guidance, political support, to move forward. And for the first time in 20 years, we have a text that has been agreed and blessed by all the ministers and heads of delegations," Okonjo-Iweala told reporters following conclusion of a ministerial meeting Thursday. "We couldn't have wished for a better outcome, let me put it that way, because it means that we can now move to the next steps." While USTR Tai said the text will serve as the basis for a member-led, text-based negotiation, the U.S. still believes that the text "does not yet contain the elements required for reaching conclusion." The steps now are for negotiations with the revised text serving as the basis for getting an agreement. Okonjo-Iweala said the line-by-line process would not have been able to be reached had it not been for those on the political side to get on board with the draft text. "What is new is that we're going to move into this line-by-line negotiations," she said. "And that's the ultimate. Because it wasn't clear that we had the political direction to be able to use this 30th of June text to proceed. And you can only have this line by line when you have a text that everybody agrees is a basis. So, that's what we got today." There certainly is hope now that the WTO can get an agreement on one of the most contentious issues on trade. But even as there is hope, there is also a realism that this is just largely an agreement now to get down to the hard negotiations. So we will see. There is optimism, but in any negotiations, the hardest part are the final details. So this is a situation that needs to be watched closely as it could signal the world trade body is potentially able to break out of a funk of a lack of progress on several fronts, and if it does, that could have countries potentially next eyeing agriculture, yet another one of the thorniest topics for the world trade body, Washington Insider believes.
| Rural Advocate News | Friday July 16, 2021 |
Justice Requires Divestiture in Merger of Ag Equipment Component Makers The Department of Justice (DOJ) said it will require Danfoss A/S and Eaton Corporation Plc to divest assets from the companies' orbital motor and hydraulic steering unit manufacturing businesses before their merger can proceed. Without the divestitures, DOJ said the combination of the two firms would "substantially lessen competition in the design, manufacture, and sale of orbital motors and hydraulic steering units used in agricultural, industrial and construction equipment." Danfoss and Eaton are the two largest makers of orbital motors used for mobile off-road equipment like skid steers, harvesting equipment, sprayers and street sweepers. Under the terms of the proposed settlement, the parties must divest three Danfoss orbital motor and hydraulic steering unit facilities located in Hopkinsville, Kentucky; Parchim, Germany; and Wroclaw, Poland, and two orbital motor production lines and one hydraulic steering unit production line from Eaton facilities located in Shawnee, Oklahoma, and Eden Prairie, Minnesota, to Interpump Group or an alternate firm approved by the U.S.
| Rural Advocate News | Friday July 16, 2021 |
Lawmakers Offer Bills for Year-Round E15 Sales Lawmakers in both the House and Senate introduced legislation to give EPA the authority to authorize sales of E15 all year, seeking to address a court decision which invalidated EPA's regulatory action to make such sales possible. Lawmakers are seeking to build bipartisan support for the bills, and some expect it could be melded into other legislation such as infrastructure. Reps. Angie Craig, D., Minn., and Adrian Smith, R., Neb., introduced the Year-Round Fuel Choice Act (HR 4410), and Sens. Deb Fischer, R., Neb., and Amy Klobuchar, D., Minn., have dropped in the Consumer and Fuel Retailers Choice Act. The House bill currently has 22 co-sponsors, while the Senate measure has at least 10. The bills would clarify EPA's authority to grant a 1-psi Reid Vapor Pressure (RVP) waivers for E15 and higher ethanol blends, permitting sales of the fuels during the summer driving months from May 1 to September 15.
| Rural Advocate News | Friday July 16, 2021 |
Friday Watch List Markets Traders continue to keep a close watch on the latest weather forecasts and any observed rainfall amounts. There is a June report on U.S. retail sales due out at 7:30 a.m. CDT Friday, followed by the University of Michigan's consumer sentiment index at 9 a.m. CDT At 11 a.m. CDT, USDA will put out its monthly Livestock, Dairy and Poultry outlook. Weather Moderate to heavy showers will continue along a frontal boundary on Friday from the southeastern Plains through the eastern Midwest. Some flooding will be possible with the rain but will be otherwise good for developing to reproductive row crops.
| Rural Advocate News | Thursday July 15, 2021 |
Iowa Rep. Axne Introduces Year-Round Fuel Choice Act House legislation introduced Wednesday seeks to ensure the Environmental Protection Agency has the authority to allow the sale of E15 and higher blends of ethanol year-round. The Year-Round Fuel Choice Act, introduced by Iowa Republican Representative Cindy Axne, follows a recent D.C. Circuit Court decision that struck down an EPA rule that allowed year-round sale of E15. Axne states, “I’m proud to work with my colleagues in the House Biofuels Caucus to quickly introduce this necessary legislation.” Growth Energy, the Renewable Fuels Association, and the National Corn Growers Association support the legislation, as well as lawmakers from many corn-producing states. On July 2, the D.C. Circuit Court of Appeals reversed an EPA rule that allowed retailers to sell E15 blends year-round through issuing a Reid Vapor Pressure waiver. The ruling determined the EPA did not have the authority for such action, but said nothing about the quality, safety, or benefits of E15. *********************************************************************************** NCBA Calls Senator Booker’s Bill Misguided The National Cattlemen’s Beef Association calls a bill introduced by Senator Cory Booker misguided. The Farm System Reform Act, reintroduced Wednesday by the New Jersey Democrat, would place a moratorium on concentrated animal feeding operations, known as CAFOs. Specifically, the legislation would place an immediate moratorium on new and expanding large CAFOs, and phase out by 2040 the largest CAFOs as defined by the Environmental Protection Agency. The bill would also restore mandatory country-of-origin labeling requirements for beef and pork and expand to dairy products. NCBA Vice President of Government Affairs Ethan Lane states the legislation "is the kind of broad, jumbled mess you get when you're more focused on Twitter and talking points than the sound legislating rural Americans need." Specific to feeedyards, Lane adds, “As our food supply chain is taxed by a growing number of mouths to feed at home and abroad, this efficient production system will be more vital than ever.” *********************************************************************************** Gillibrand Planning Dairy Subcommittee Hearing on Pricing Senator Kirsten Gillibrand this week says she is moving forward with a dairy pricing hearing. The New York Democrat announced permission was granted for a hearing in the U.S. Senate Agriculture Subcommittee she chairs on Dairy, Livestock, Poultry, Local Food Systems, Food Safety and Security. Although a Senate calendar date is not yet confirmed, the hearing is supposed to occur after the August recess. Previously, Gillibrand told reporters she is working on milk pricing legislation and wants to have hearings to allow input from farmers, milk handlers and academia. Front and center is the Class I fluid milk pricing change made in the 2018 Farm Bill from the ‘higher of’ Class III or IV manufacturing prices to an averaging method. That changed the base price for Class I by a net loss of over $783 million across the 26 months of implementation, contributing to class price misalignments that disrupted Federal Milk Marketing Orders. *********************************************************************************** Food Prices Higher in Latest Consumer Price Index The June Consumer Price Index Summary released this week increased .9 percent, the largest monthly change since June of 2008. The food index increased 0.8 percent in June. The food away from home index rose 0.7 percent, and the food at home index increased 0.8 percent. As in May, the food at home increase was mostly due to the index for meats, poultry, fish, and eggs, which increased 2.5 percent over the month. All six major grocery store food group indexes increased, but the index for fruits and vegetables was the only one to rise more than 0.8 percent, increasing 3.2 percent. The beef index rose 4.5 percent in June, its largest one-month increase since June 2020. In contrast to these increases, the index for cereals and bakery products was the only one of the six major grocery store category indexes to decline in June, falling 0.3 percent over the month after increasing 0.5 percent in May. *********************************************************************************** EU Announces Climate Plan The European Commission Wednesday adopted a package of ambitious climate proposals. The proposal makes the EU's climate, energy, land use, transport and taxation policies “fit” for reducing net greenhouse gas emissions by at least 55 percent by 2030, compared to 1990 levels. Achieving the emission reductions in the next decade is “crucial to Europe becoming the world's first climate-neutral continent by 2050” and making the European Green Deal a reality, according to the commission. The Regulation on Land Use, Forestry and Agriculture sets an overall EU target for carbon removals by natural sinks, equivalent to 310 million tons of CO2 emissions by 2030. And the Renewable Energy Directive will set an increased target to produce 40 percent of EU energy from renewable sources by 2030. Finally, the proposal includes a carbon price on imports of select products to ensure climate action in Europe does not lead to ‘carbon leakage.’ The carbon price is a concern, however, for EU trading partners. *********************************************************************************** Illinois Wheat Yield Set a New Record Many wheat growers believed this year’s crop had a lot of potential prior to harvest. However, the most recent Illinois yield estimate released Monday by USDA’s National Ag Statistics Office in Springfield, Illinois, still caught some off guard. This year’s average in Illinois - 80 bushels per acre - blew past the 2017 record by four bushels. The new state record yield also topped last year’s average by a whopping 12 bushels per acre. Heavy rains and strong winds threatened wheat stands in parts of the state in recent weeks and caused some issues. But many farmers were able to get the crop out in time to avoid major losses. Overall, USDA pegged winter wheat production at 52 million bushels in Illinois, up 47 percent from last year, and 1.36 billion bushels nationwide, up four percent from the June estimate, with a national average yield of 53.6 bushels per acre, up 2.7 bushels from 2020.
| Rural Advocate News | Thursday July 15, 2021 |
Washington Insider: Inflation and Discussing it Keeps Rising It's hard to read any major business-related publication or make a visit to a store or watch government data without seeing some signs of inflationary pressures in the U.S. economy. Inflation at the consumer level as measured by the Consumer Price Index (CPI), which rose 0.9% in June compared with May, mounting a 5.4% advance from a year ago, the biggest jump in prices since 2008. In what is known as the "core" rate of inflation -- it strips out the volatile categories of food and energy prices -- inflation in June also rose 0.9%, and the 4.5% rise on an annualized basis was the biggest since 1991. One of the biggest factors was the prices for used cars and trucks. The chip shortages have shot used car and truck prices higher as new models are in short supply or some have given up on waiting months after months for a new vehicle. The 10.5% rise in used car and truck prices in June came after those prices rose more than 7% in May and 10% in April. Food prices showed a more-tempered rise, although the cost of eating out increased significantly. Restaurant prices rose 0.7% for the month and posted a 4.2% rise over the past year, while grocery store prices were up 0.8% from May, but only posted an annual increase of 0.9%, according to the BLS. The rise in restaurant prices on an annualized basis was the biggest rise since May 2009. At the grocery store, beef prices were a key as they rose 4.5% in June, the biggest monthly rise since June 2020. Indeed, there are reports of employers seeking to attract workers by raising wages. Recent data from the government also bore that out, and the unemployment rate is still around 5.9%. But the Fed continues to insist that the rise in prices is "transitory" or that it will not become embedded or sustained enough to damage the U.S. economy. Federal Reserve Chair Jerome Powell acknowledged the rise in inflation in his testimony to the House Financial Services Committee, but reiterated the Fed view that it will "moderate" over time. "Inflation has increased notably and will likely remain elevated in the coming months before moderating," Powell said. But the rise in prices is being "temporarily boosted by base effects, as the sharp pandemic-related price declines from last spring drop out of the 12-month calculation." He also pointed to "strong demand in sectors where production bottlenecks or other supply constraints have limited production and has led to especially rapid price increases for some goods and services, which should partially reverse as the effects of the bottlenecks unwind." Those bottlenecks have certainly been seen in several areas of the U.S. economy as the restart from the COVID-19 pandemic has unfolded. The pandemic caused changes in supply chains around the globe and those are not easy things to reverse. And a sudden surge in demand as consumers now have the ability get out and do things like eat out, shop and travel has put the services sector in a bind. The torrid pace of lumber price increases appears to have abated, another factor that would have produced a bigger hit on the housing sector if not for low interest rates that have allowed home sellers to get their asking price or more for their properties. And, those properties are not staying on the market long. The Federal Reserve's Beige Book report, an anecdotal recap of economic conditions around the country that is issued two weeks before the next Fed rate-setting meeting, also acknowledged the price hikes. The recap noted too, that the "growth in input prices is continuing to outpace that of finished goods and services." Businesses told the Fed, however, they were seeing an "improved ability to raise final selling prices to consumers, especially in the retail, wholesale trade, and manufacturing sectors, and some cited plans to increase selling prices in the coming months." And while Powell kept his inflationary remarks virtually unchanged from where he has been for several weeks now, lawmakers at the hearing Wednesday are starting to question that view. "I can tell you that the families and businesses I represent are not feeling that these price spikes are temporary," Rep. Ann Wagner, R., Mo., told Powell. "It is housing, appliances, food prices, gas." Powell and the Fed have insisted that they believe inflation will run above their 2% target "for some time." Keep in mind, that the CPI data released this week is not the guide that the Fed uses to measure inflation. Instead, they rely on what is called the Personal Consumption Expenditures (PCE), a broader measure of inflation that includes CPI but other components. Rep. Anthony Gonzalez, R., Ohio, pressed Powell on that term "for some time," asking the Fed chair to provide some indication of what that time period is. "It depends," Powell said. Part of that is that Powell has so far refused to be drawn into committing to a timeline on the Fed's actions. He has learned from prior Fed leaders who have made comments on timing of various things to Congress only have those quickly become a market assumption that will dictate action by the Fed. Powell has insisted the central bank cannot be locked into a set path on monetary policy and has to have the flexibility to address situations as they arise. And he also made the remark to lawmakers, "You wouldn't react to something that is likely to go away." No doubt that will not set well with those who are seeing prices rise at the grocery store, the gas pump and other places. The Fed clearly has a difficult and delicate task on their hands, one that so far, they have navigated with some degree of success. But as the price increases come, there are concerns that a policy response from the Fed is needed. The concern is that a Fed response could result in higher borrowing costs. So, we will see. It adds another factor that U.S. agriculture needs to watch as the pandemic has driven down interest costs, which are an important cost factor that must be watched, Washington Insider believes.
| Rural Advocate News | Thursday July 15, 2021 |
US Steps Up Pressure on Businesses Over Xinjiang Situation The U.S. State Department, Treasury Department, Commerce Department, Home Security Department, Labor Department and Office of the U.S. Trade Representative issued an updated "Xinjiang Supply Chain Business Advisory" to "highlight the heightened risks for businesses with supply chain and investment links to Xinjiang, given the entities complicit in forced labor and other human rights abuses there and throughout China." The new advisory updates the one issued in July 2020. The new advisory now includes information from the Department of Labor and USTR, which it said are now co-signatories to the advisory. The update stated that China "is perpetrating genocide and crimes against humanity in Xinjiang" and it provides "specific information regarding risks related to investment in PRC [People's Republic of China] companies linked to surveillance and forced labor in Xinjiang." The new guidance does not have the force of law, but "strengthens recommendations for businesses regarding the risks and potential exposure" for supply chains and investment in Xinjiang. The new update also outlines the list of U.S. government enforcement actions taken and provides information on silicon and polysilicon supply chains linked to Xinjiang along with providing "a list of other countries' relevant regulatory provisions and information on forced labor in supply chains."
| Rural Advocate News | Thursday July 15, 2021 |
USDA Details Pandemic-Related Help for Depopulated Livestock USDA finally provided some details on animal depopulation/disposal assistance for livestock and poultry producers who suffered losses during the COVID-19 pandemic due to insufficient access to processing. Those producers can soon apply for assistance for those losses and the cost of depopulation and disposal of animals under the Pandemic Livestock Indemnity Program (PLIP). Signup will be from July 20 through Sept. 17. Payments will be based on 80% of the fair market value of the livestock and poultry and for the cost of depopulation and disposal of the animal from March 1 through Dec. 26, 2020. Payments will be based on a single payment rate per head. PLIP payments will be calculated by multiplying the number of head of eligible livestock or poultry by the payment rate per head, and then subtracting the amount of any payments the eligible livestock or poultry owner has received for disposal of the livestock or poultry under the Natural Resources Conservation Service Environmental Quality Incentives Program or a state program. The payments will also be reduced by any Coronavirus Food Assistance Program (CFAP 1 and 2) payments paid on the same inventory of swine that were depopulated. USDA has set aside "up to $50 million in pandemic assistance funds to provide additional assistance for small hog producers that use the spot market or negotiated prices. Details on the additional targeted assistance are expected to be available this summer." Packers, live poultry dealers and contract growers are not eligible for PLIP.
| Rural Advocate News | Thursday July 15, 2021 |
Thursday Watch List Markets USDA's weekly Export Sales report will be released at 7:30 a.m. CDT Thursday, the same time as weekly updates of U.S. jobless claims and the U.S. Drought Monitor. The Federal Reserve will report on industrial production in June at 8:15 a.m. CDT, followed by the Energy Department's weekly report on natural gas inventories at 9:30 a.m. ET. Also, Federal Reserve Chairman Jerome Powell speaks the U.S. Senate Thursday. Weather A frontal boundary from Kansas into Michigan will slowly slide south on Thursday, with periods of moderate to heavy showers and thunderstorms along it. Some continued disruption to the wheat harvest and flooding of saturated soils is possible, but overall, the rainfall will be beneficial to developing and reproductive corn and soybeans across the southern Corn Belt.
| Rural Advocate News | Wednesday July 14, 2021 |
USDA to Provide Pandemic Assistance to Livestock Producers for Animal Losses Livestock and poultry producers who suffered losses during the pandemic due to insufficient access to processing can apply for assistance from the Department of Agriculture. The assistance, announced Tuesday, covers the losses and costs of depopulation and disposal of animals. The Pandemic Livestock Indemnity Program is part of USDA’s Pandemic Assistance for Producers initiative. The Consolidated Appropriations Act of 2021 authorized payments to producers for losses of livestock or poultry depopulated from March 1, 2020, through December 26, 2020, due to insufficient processing access due to the pandemic. Payments will be based on 80 percent of the fair market value of the livestock and poultry and the cost of depopulation and disposal of the animal. Eligible livestock and poultry include swine, chickens and turkeys, but pork producers are expected to be the primary recipients of the assistance. Livestock and poultry producers can apply for assistance through USDA's Farm Service Agency from July 20 through September 17, 2021. *********************************************************************************** RMA Authorizes Emergency Procedures to Help Drought-Impacted Producers The Department of Agriculture Tuesday authorized emergency procedures to help farmers impacted by extreme drought conditions. USDA's Risk Management Agency is working with crop insurance companies to streamline and accelerate the adjustment of losses and issuance of indemnity payments to crop insurance policyholders in impacted areas. These new crop insurance flexibilities are part of USDA's broader response to help producers impacted by drought in the West, Northern Great Plains, Caribbean and other areas. Emergency procedures allow insurance companies to accept delayed notices of loss in certain situations, streamline paperwork, and reduce the number of required representative samples when damage is consistent. The flexibilities reduce burdens on both insurance companies and farmers. Producers should contact their crop insurance agent as soon as they notice damage. Producers impacted by drought may also qualify for other USDA programs, including disaster assistance and conservation programs. Visit farmers.gov to access USDA’s Disaster Assistance Discovery Tool. *********************************************************************************** UN Report: Pandemic Year Marked by Spike in World Hunger A new report from the United Nations Food and Agriculture Organization shows a dramatic worsening of world hunger in 2020. While the pandemic's impact has yet to be fully mapped, the multi-agency report estimates that around a tenth of the global population - up to 811 million people - were undernourished last year. The number suggests it will take a tremendous effort for the world to honor its pledge to end hunger by 2030. This year's report is the first global assessment of its kind in the pandemic era. The report warns of a "critical juncture," even as it pins fresh hopes on increased diplomatic momentum. In 2020 hunger increased, outpacing population growth, as some 9.9 percent of all people are estimated to have been undernourished last year, up from 8.4 percent in 2019. The report says transforming food systems is essential to achieve food security, improve nutrition and put healthy diets within reach of all. *********************************************************************************** Groups Press for Higher Octane Fuel Standard A coalition of farm and renewable fuel organizations urge the Biden administration to propose a higher octane fuel standard. In a letter to President Joe Biden this week, the coalition also requested the Environmental Protection Agency open a comment period on the role high octane low carbon fuels can play in advancing the administration’s climate objectives. The effort complements a similar letter from the Alliance for Automotive Innovation, expressing support for high octane low carbon fuels. The letters come as the EPA updates its greenhouse gas emissions standards for passenger vehicles and light-duty trucks. The fuels improve vehicle and fuel efficiency, which in turn can reduce greenhouse gas emissions, improve air quality, conserve oil, and strengthen energy security. National Farmers Union President Rob Larew states, “That alone should be plenty of justification for the EPA to introduce a higher octane fuel standard.” The coalition includes National Farmers Union, American Farm Bureau Federation and multiple state commodity organizations. *********************************************************************************** AEM Releases June 2021 Equipment Sales Numbers Smaller tractors led declines in U.S. and Canada farm tractor sales while overall tractor inventories are down more than 40 percent year-over-year. Monthly data released by the Association of Equipment Manufacturers finds U.S. total farm tractor sales fell 12.7 percent in June compared to 2020, the second overall negative result in a year. Meanwhile, U.S. Combine sales increased 4.1 percent for the month. Small tractor sales led the decline, down 18.4 percent, while midsized tractor sales declined 3.1 percent. All other segments saw increased sales over the prior month. Year to date, U.S. farm tractor sales remain up 16.7 percent and combines up 11 percent. For Canada, June monthly tractor and combine sales were a mixed bag. Available inventories may explain some of the changes in sales, as U.S. total farm tractor inventory is 41.3 percent below levels in June 2020 while Canadian inventory is down 33.2 percent over that same time. *********************************************************************************** American Farmland Trust Shares Updated Soil Health Economic Calculator American Farmland trust Tuesday announced an update to its Retrospective Soil Health Economic Calculator Tool. The update provides farmers a means of evaluating the return on investment of soil health conservation practices with 2020 price and crop data. The previous version of the tool used 2019 information. The updated pricing allows farmers to obtain a more accurate picture of the costs and benefits of their investments in soil health. The calculator is part of a comprehensive set of resources from AFT on the Soil Health Case Study Methods and Took Kit webpage. The calculator tool allows the evaluation of soil health practices adopted by row crop farmers for more than four years and within the last 15 years. The tool presents the net economic benefits in a partial budget analysis table and includes an estimate of the ROI in the soil health practices. AFT also released a customized almond version to estimate the economic effects of almond-specific soil health practices.
| Rural Advocate News | Wednesday July 14, 2021 |
Washington Insider FTC About to Become Busier The broad executive order issued by President Joe Biden on competitiveness, "Promoting Competition in the U.S. Economy," directs several government agencies to take a series of actions on the regulatory front that would address what the administration says is a lack of competitiveness in several areas of the U.S. economy. One of the agencies that will have quite a role in the actions is the Federal Trade Commission (FTC), which in reality is an independent government agency that dates back to 1914 when President Woodrow Wilson signed legislation creating the agency. The FTC opened its doors March 16, 1915, given a mission to "protect consumers and promote competition." But the agency did have a predecessor -- the Bureau of Corporations. The Commission is headed by five Commissioners, nominated by the President and confirmed by the Senate, each serving a seven-year term. No more than three Commissioners can be of the same political party. The President chooses one Commissioner to act as Chair. So this agency, while a federal government agency, does have some autonomy in that the terms of commissioners can overlap from administration to administration. But the president gets to choose who leads the agency. That feeds into the current executive order in that the FTC has several mentions in that order. For example, they are given an important mention when it comes to cooperation between agencies on cases of overlapping jurisdiction when it comes to "major transactions." When those cases of overlap happen, the agencies involved are to give "significant consideration" to the views of the Attorney General and the FTC Chair. In fact, many of the actions outlined in the executive order call on the Attorney General and FTC Chair to take several actions in areas relative to mergers, wages collusion, and they are the lead on addressing issues like no-compete clauses, which the executive order calls on to be addressed in the event they "unfairly limit worker mobility." The FTC has a key role in the effort to improve farmers' and smaller food processors' access to retail markets. They are to work with USDA to come up with a report within 300 days that goes to the Chair of the White House Council on Competition established under the executive order. That report is to address the "effect of retail concentration and retailers' practices on the conditions of competition in the food industries, including any practices that may violate the Federal Trade Commission Act" and other laws. The FTC is also supposed to offer their consultation with the Secretary of the Treasury to prepare a report on markets for beer, wine, and spirits with an eye on improving access for smaller, independent and new operations. The FTC also has to weigh in on issues like generic drugs and biologics. But the biggest one for agriculture deals with the concept of right to repair. The executive order doesn't use that phrase but calls it "unfair anticompetitive restrictions on third-party repair or self-repair of items, such as the restrictions imposed by powerful manufacturers that prevent farmers from repairing their own equipment." And there, the ball pretty much is in the FTC's court as the order states that for that and some other key issues, the FTC Chair is "encouraged to consider working with the rest of the Commission to exercise the FTC's statutory rulemaking authority, as appropriate and consistent with applicable law." And it is not limited to right to repair, as the order also directs the FTC to look at area relative to prescription drugs, Internet, occupational licensing, real estate activities and "any other unfair industry-specific practices that substantially inhibit competition." So we will see. The FTC clearly has a big role to play in this executive order and the actions that are expected to come out of it, including several that focus on agriculture, which means the various reports and recommendations coming from the FTC need to be watched very closely, Washington Insider believes.
| Rural Advocate News | Wednesday July 14, 2021 |
Senate Finance Committee Clears to Trade Nominees The Senate Finance Committee voted Tuesday to approve the nominations of two for trade posts at the Office of the U.S. Trade Representative, forwarding those nominations to the full Senate. The panel failed to have a quorum present initially, so the votes were held later on the sidelines of the Senate. The panel approved 27-1 the nomination of Sarah Bianchi to be deputy U.S. trade representative for Asia, Africa, investment, services, textiles, and industrial competitiveness. The panel also cleared 25-3 Jayme Ray White to be a deputy U.S. trade representative for the Western Hemisphere, Europe, the Middle East, labor, and environment. White and Bianchi told lawmakers in the confirmation hearings that the lapse in Trade Promotion Authority (TPA) should not keep the Biden administration from pursuing new trade agreements provided those deals were constructed to be able to win bipartisan backing in Congress. But the two did not signal the administration was ready to pursue any new trade deals at this point.
| Rural Advocate News | Wednesday July 14, 2021 |
USTR Mum on US-UK Trade Deal Prospects U.S. Trade Representative (USTR)Katherine Tai met UK Secretary of State for International Trade Elizabeth Truss, a sort of follow up to a session the two had in June. A readout of the session from USTR noted the two celebrated the Large Civil Aircraft framework reached between the U.S. and UK that "strengthens the cooperative relationship between the two countries in the aerospace sector." As with other sessions that Tai has had with world trade officials, it noted the two agreed to work together "to promote fair competition, enhance the international trade system, and address forced labor issues." The latter is viewed as clearly a reference to the actions of China. As for a U.S.-UK trade deal, the readout simply said the two "committed to continue strengthening the trade and economic partnership between the United States and United Kingdom."
| Rural Advocate News | Wednesday July 14, 2021 |
Wednesday Watch List Markets Following Tuesday's big jump in consumer prices, the Labor Department will release producer prices for June at 7:30 a.m. CDT Wednesday. The Energy Department's weekly energy inventories are set for 9:30 a.m., followed by the Federal Reserve's Beige Book at 1 p.m. Traders will continue to pay close attention to the latest weather forecasts and observed rainfall amounts. Weather A batch of moderate to heavy rainfall over South Dakota and Nebraska Wednesday morning will move eastward into Wisconsin through the day. These areas may see 1 to 2 inches of rainfall and locally heavier, benefiting developing to reproductive crops currently in drought.
| Rural Advocate News | Tuesday July 13, 2021 |
USDA Releases July WASDE Report The latest World Agriculture Supply and Demand Report from the Department of Agriculture Monday predicts lower corn and soybean prices for the growing year. The corn outlook calls for larger supplies, greater feed and residual use, increased exports, and higher ending stocks. Corn production is forecast 175 million bushels higher based on greater planted and harvested area from the June 30 Acreage report. With supply rising more than use, ending stocks are up 75 million bushels. The season-average farm price declined ten cents to $5.60 per bushel. Soybean production is projected at 4.4 billion bushels, unchanged from last month. Harvested area, pegged at 86.7 million acres in the June 30 Acreage report, is unchanged from last month but up 4.4 million from last year. The season-average soybean price is $11.05 per bushel, down 20 cents from last month. The outlook for wheat this month predicts reduced supplies, lower domestic use and exports, and decreased ending stocks. The projected season-average farm price increased ten cents per bushel to $6.60. *********************************************************************************** Cattle Groups Welcome USDA Processing Capacity Investment The Biden administration’s executive order focusing on increasing competition, including in beef markets, gained praise from U.S. cattle groups. The order includes a review of the Product of the USA label, creating increased market opportunities and considering new rules under the Packers and Stockyards Act. The Department of Agriculture Also announced $500 million to increase meat processing capacity. The National Cattlemen’s Beef Association applauded the announcements. NCBA Government Affairs President Ethan Lane says, “NCBA’s top priority in Washington is pushing for policies that strengthen the business climate for our producers.” Lane adds the order is a “vital next step toward securing a steady beef supply chain, and increasing opportunities for profitability for our producers.” U.S. Cattlemen’s Association President Brooke Miller stated, “USCA applauds President Biden for hearing the calls from cattle country regarding increased consolidation in the U.S. cattle industry.” R-CALF CEO Bill Bullard says, “It is clear the Secretary intends to open the bottleneck created in the cattle industry.” *********************************************************************************** Meat Institute Opposes Government Intervention in Meat Markets The North American Meat Institute opposed recent action to make changes to the Packers and Stockyards Act. In a statement, the organization says, President Biden's executive order calling for the Department of Agriculture to change the Packers and Stockyards rules will have unintended consequences for consumers and producers. Meat Institute President and CEO Julie Anna Potts states, “Government intervention in the market will increase the cost of food for consumers at a time when many are still suffering from the economic consequences of the pandemic.” Potts says the proposed changes will “open the floodgates” for litigation and limit livestock producers’ ability to market their livestock as they choose. On Friday, President Joe Biden signed an executive order to increase competition in the U.S. economy, including in the beef sector. The executive order also asks USDA to review the Product of USA labeling requirements. Additionally, USDA announced a $500 million investment to increase processing capacity of meatpacking facilities across the nation. *********************************************************************************** USDA Announces Dates for Conservation Reserve Program Grasslands Signups Farmers can apply for the Conservation Reserve Program Grasslands signup until August 20. This year, the Department of Agriculture updated signup options to provide greater incentives for producers and increase the program's conservation and climate benefits, including setting a minimum rental rate and identifying two national priority zones. The CRP Grassland signup is competitive, and USDA's Farm Service Agency will provide annual rental payments for land devoted to conservation purposes. FSA Administrator Zach Ducheneaux (DOO-shu-know) says, "Bottom line, CRP now makes more financial sense for producers while also providing a bigger return on investment in terms of natural resource benefits." CRP Grasslands helps landowners protect grassland, including rangeland, and pastureland, while maintaining the areas as working grazing lands. Protecting grasslands contributes positively to the economy of many regions, provides biodiversity of plant and animal populations, and provides important carbon sequestration benefits. Producers and landowners should contact USDA by the August 20 deadline to enroll in the CRP Grasslands signup. *********************************************************************************** USDA: Rye and Winter Wheat Most Common Cover Crops The Department of Agriculture’s Economic Research Service says farmers utilizing cover crops most commonly choose rye grass or winter wheat. Researchers reported which cover crops were grown the fall before planting corn, cotton, and soybeans. For corn fields intended for use as grain or silage in data from 2016, more than 90 percent of acres with cover crops used a grass or small grain cover crop, such as rye, winter wheat, or oats. At 63 percent of acreage, rye was more than twice as common as winter wheat, at 26 percent, as the cover crop on corn for grain fields. Rye and winter wheat were also the most common cover crops on soybean fields in 2018. Winter wheat was the most common cover crop used on cotton fields in 2015. This likely reflects the role of wheat stubble in protecting cotton seedlings from wind and the potentially negative impact of certain chemicals produced by cereal rye on growing cotton plants. *********************************************************************************** Fuel Prices Could Soon Stabilize The nation’s average gas price continues its climb, up 0.5 cents per gallon from a week ago to $3.13 per gallon. The national average now stands five cents higher than a month ago and 93.7 cents higher than a year ago. The national average price of diesel increased 1.1 cents in the last week and stands at $3.25 per gallon. However, GasBuddy experts say gas prices should stabilize in the weeks to come. GasBuddy’s Patrick De Haan says, “with U.S. gasoline demand falling slightly last week, we may have already seen peak consumption over the July 4 holiday.” Crude oil prices may test the $80 benchmark, but are trading around $73 to $75 to start the week. U.S. oil inventories plummeted by nearly seven million barrels, while gasoline also saw a large drop of 6.1 million barrels. De Haan adds, “we’re potentially only 4-6 weeks away from gas prices beginning a seasonal decline that we’re likely all eagerly awaiting.”
| Rural Advocate News | Tuesday July 13, 2021 |
Washington Insider: Rural Internet, the Modern REA The House Agriculture Committee this week will markup the Broadband Internet Connections for Rural America Act (HR 4374), a measure to bring Internet to rural areas of the country. “Rural broadband is critical for the growth and development of our rural communities, and it is essential that we act to finally close the digital divide that has kept so many of our rural communities from reaching their full potential, which is why the House Agriculture Committee is leading the charge on this effort,” said Chairman David Scott, D-Ga. “This bill will direct $50 billion toward critically needed infrastructure for rural broadband and also includes resources to ensure that this funding is used in a timely manner and accessible to rural communities with limited resources.” Indeed, rural Internet systems clearly were tested during the pandemic with students taking their classes from home and many working from their homes remotely, using Internet connections to make that happen. But many also found out the limitations of broadband Internet access in rural America. While the effort is likely to easily clear the House Agriculture Committee and potentially the full House, it would appear the hasty effort to get the measure pushed through – the markup was only announced Monday afternoon for the Wednesday session – may be one that has lawmakers eyeing the bipartisan infrastructure package as a potential vehicle to put the measure in motion. What some are opening suggesting is that a Rural Electrification Administration (REA) effort is what needs to take place. And the concept of the REA was sparked by the rise in electricity in urban areas. It was estimated that in 1935 when the REA was formed, 90% of farms still relied on kerosene lanterns and candles for light and they relied on wood burning stoves to heat their homes. And they did not have electric power to provide them running water. While there were several systems that would use wind power to collect and store electricity in large glass-enclosed batteries in what many called “Delco Systems,” those were the exception rather than the norm and were found on the farms of those that were more well to do. In the late 1920s and before he left office in 1933, President Herbert Hoover agreed that the electrification of rural America was important, but he wanted to leave it to the private sector to make it happen. Then came the Great Depression, and many of the private efforts folded up as the economy crashed. Enter the REA which was created in 1935. The cost of delivering electricity into rural areas was still not cheap when the REA was launched, estimated in 1935 to be around $2,000 per mile. By the time we reached 1939, the cost had gone down to around $600 per mile. Put in today's dollars, the cost dropped from $38,740 per mile down to $11,622 per mile. And the concept of the REA was developed by Morris Llewellyn Cooke, a mechanical engineer who had come up with the plan to distribute power in New York and Pennsylvania. When REA was launched, President Franklin Roosevelt tapped Cooke as the first administrator. By 1937, some 1.5 million farms were electrified through 350 rural cooperatives in 45 of 48 states. Almost half of all farms had electricity by 1942 with nearly all farms electrified by 1950. However, there were still a handful of those who didn't trust power coming through a wire into their house and they did not opt to have it installed. Those farms were few and far between, but they were still a factor in the situation. Congress started the effort with $410 million, the equivalent of $7.9 billion in today's dollars. The REA was essentially a government financing project that was subsidizing loans to private companies, public agencies or cooperatives for the construction of the electrical supply infrastructure. The repayment terms were over 25 years and eventually the interest rate was fixed at 2% after 1944. Money lent by the REA was also largely repaid, with a default rate of less than 1%. Telephone service was added to their effort. The REA and its successor the Rural Utilities Service (RUS), has organized nearly $57 billion in federal guaranteed low-interest loans for the development of electric and telephone cooperatives. And now the focus is shifting to the Internet. Indeed, agriculture has already seen what a government-subsidized system can do in terms of providing what is an essential service to rural America. It is no coincidence that RUS is again being eyed for the effort to help bring rural America up to par with urban areas of the country. So we will see. The pandemic revealed what many already knew, few have been willing to push broadband Internet into rural areas and efforts like those under consideration could hold great potential provided that the end result does not produce a system that truly does bring that service into areas that need it, and so the situation needs to be watched closely as it comes closer to becoming reality, Washington Insider believes.
| Rural Advocate News | Tuesday July 13, 2021 |
FY 2022 Spending Plans Up For Action In House House Appropriations subcommittees have several markup sessions set for this week on the Fiscal Year (FY) 2022 spending plans under their jurisdictions, seeking to complete the effort and set the stage for full House consideration of the plans ideally before the August congressional recess. Subcommittee markups tend to lack much controversial activity and even the full committee action seen thus far has not resulted in any major tweaks to the FY 2022 spending plans. However, the Senate has not yet acted on their versions and has only held hearings thus far on a few areas. That ups the odds that a temporary spending resolution will be needed to keep the government funded when FY 2022 starts October 1.
| Rural Advocate News | Tuesday July 13, 2021 |
US, Mexico Agree On Labor Dispute Resolution One of the actions that emerged from sessions last week between the U.S., Mexico and Canada after marking the one-year anniversary of the U.S.-Mexico-Canada Agreement (USMCA) was that the U.S. and Mexico agreed to allow a vote by workers at a GM plant in Mexico on forming a union. The complaint was brought under new provisions in the USMCA. There was no resolution to other labor-related issues as of yet and key agriculture trade matters were also left unresolved between the U.S. and Canada over dairy and the U.S. and Mexico over GMO crops and glyphosate.
| Rural Advocate News | Tuesday July 13, 2021 |
Tuesday Watch List Markets Traders will likely still be influenced by Monday's new WASDE estimates and also have new crop condition ratings to consider early Tuesday. The U.S. Labor Department's consumer price index for June is set to be released at 7:30 a.m. CDT, followed by the U.S. Treasury's report on the federal budget for June at 1 p.m. CDT. Traders will keep a close watch on the latest forecasts and any news of an export sale. Weather Scattered showers will develop east of the Mississippi River Tuesday, with isolated showers west to the Rockies. More significant showers are expected to develop Tuesday night across the Northern Plains.
| Rural Advocate News | Monday July 12, 2021 |
Biden Signs Economic Competition Executive Order President Joe Biden signed an executive order Friday directing the Department of Agriculture to engage in rulemaking on several issues. The executive order, focused on promoting competition in the U.S. economy, includes provisions on livestock markets and right to repair. The order directs USDA to consider new rules under the Packers and Stockyards Act, to allow producers to bring and win claims under the Act more easily. President Biden also directed USDA to consider new rules defining the Product of USA label. Further, the order calls on USDA to develop a plan to increase market opportunities for farmers and ranchers. Finally, the order encouraged the Federal Trade Commission to limit equipment manufacturers from restricting access to farmers wishing to repair their own machinery, known as right to repair. American Farm Bureau Federation President Zippy Duvall says the action comes ”at a time when many in the farm supply chain are frustrated.” Duvall adds that more opportunities for farmers and ranchers to sell their products will ensure they are paid fairly while providing more options for America’s families. *********************************************************************************** Shipping Costs Adding to Food Inflation The rally in crop prices over the last 12 months, combined with increased shipping costs, is fueling inflation of food prices. Costs of shipping bulk grains from production regions in the U.S. to global users have roughly doubled from last year, according to Reuters. Shippers cite rising fuel costs, tighter supplies of shipping vessels and longer port turnaround times. An economist at the National Australia Bank tells Reuters, “For years, buyers enjoyed low grain and freight prices. I see no immediate end to high freight costs.” Moving grain from Australia to Asia now cost $30 per metric ton, compared to $15 last year. Shipping from the U.S. Pacific Northwest to Asia now costs $55 per metric ton, compared to $25 last year. Global food prices fell in June, the first decline in a year, according to data from the Food and Agriculture Organization of the United Nations. However, prices reached ten-years highs before the decline posted last month. *********************************************************************************** GOA: Broadband Benchmark Speeds May be too Slow A new report from the Government Accountability Office encourages the Federal Communications Commission to evaluate benchmark broadband speeds. The report states, “We recommended that the FCC determine whether its current definition of broadband really meets the needs of small businesses.” Currently, the benchmark speeds for broadband are 25 megabits per second download, and three megabits per second upload. However, recent surveys suggest small businesses may need a download speed of 50 megabits per second. The GAO referenced a 2019 USDA report on rural broadband and agriculture that shows as technology advances, volumes of data needed to manage agriculture production grow. The USDA report says speeds in excess of 25/3 megabits per second with more equal download and upload speeds will likely be necessary. Further, GAO says small businesses will likely benefit from federal funding provided by the FCC and USDA to expand broadband deployment. Roughly eight percent of small businesses in the U.S. currently lack access to broadband. *********************************************************************************** New USDA Grading Dashboard Expands Access to Data The Department of Agriculture Friday announced a new Grading Dashboard, capturing current and historical quality grade and volume information for beef, lamb and veal. The Dashboard includes data published through the weekly USDA National Steer and Heifer Estimated Grading Percent Report and expands the information to include veal and lamb grades and volumes. Mae Wu (May-wooh), USDA Deputy Under Secretary of Marketing and Regulatory Programs, states, “This new dashboard offers farmers, ranchers and others in the supply chain the latest grading performance information in an easy to use format.” USDA’s Agricultural Marketing Service applies quality grades to a variety of agricultural commodities for companies on a fee for service basis. The interactive tool provides another level of service to the beef, lamb and veal industries that rely on these data to make informed business, marketing and production decisions. Producers can find the new grading dashboard on the USDA AMS website, ams.usda.gov. *********************************************************************************** Senate Ag Committee Plans Moffitt Nomination Hearing The Senate Agriculture Consider will consider the nomination of Jennifer Moffitt to a Department of Agriculture post Thursday. President Joe Biden nominated Moffit as undersecretary for Marketing and Regulatory Programs at USDA. Committee Chair Debbie Stabenow and Ranking Member John Boozman announced the hearing, set for Thursday morning. President Biden nominated Moffitt for the position in April. She currently serves as Undersecretary at the California Department of Food and Agriculture and previously served as Deputy Secretary for the agency. At the time of her nomination, Agriculture Secretary Tom Vilsack stated Moffitt will “join a mission area that is focused on facilitating the domestic and international marketing of U.S. agricultural products.” Before her time with CDFA, Moffitt spent ten years as Managing Director at Dixon Ridge Farms, her family’s organic walnut farm and processing operation in California. Vilsack added that Moffitt “will be a welcomed addition to a growing USDA team.” *********************************************************************************** FFA Seeks Convention Newsroom Internship Applications The National FFA Organization announced Friday internships are available for the FFA Newsroom Crew during the 94th National FFA Convention and Expo this fall. The organization seeks college students or recent college graduates pursuing degrees in journalism, agricultural communications, public relations, telecommunications, or a closely related field. FFA Newsroom Crew interns are expected to arrive in Indianapolis Monday, October 25, and work through Saturday, October 30. Newsroom interns receive a small stipend, access to the event, coaching on how to become a better communicator, and experiences to help them in the future. The FFA Newsroom Crew internship may be eligible for college credit, and applicants are asked to talk with their school’s advisor for additional credit information. The National FFA Convention and Expo takes place October 27-30 this fall. The internship application deadline is August 2, 2021. Interested students can learn more and apply online by visiting the link below.
| Rural Advocate News | Monday July 12, 2021 |
Washington Insider: Biden Administration and Meat Industry A sweeping executive order signed by President Joe Biden on Friday would direct several government agencies to take actions in areas of competition, with agriculture portions focused on issues like rules that would help chicken farmers and ranchers sue meat and poultry companies, would address the right to repair issue and would also direct USDA to assess the “Product of USA” labeling system. While agriculture is only covered in a portion of the executive order, the order stated that when it comes to market concentration, farmers “get less when they sell their produce and meat -- even as prices rise at the grocery store.” If some of the topics sound familiar that the executive order called to be addressed, it is because some of them are akin to those the Obama administration had proposed but were withdrawn by the Trump administration. And USDA Secretary Tom Vilsack is no stranger to the topics as they were ones that he attempted to address when he held the top spot at USDA in the Obama administration. Bloomberg noted that while it didn't appear the Obama administration was able to make the case that antitrust actions would boost economic activity. But Christopher Leonard, who wrote about the efforts to reform the industry in his book The Meat Racket, said things are not the same. “This time seems to be different,” Leonard told Bloomberg in a message. “There is a groundswell of support for antitrust reforms on both the left and right in Congress. If a program like this could ever get implemented, it seems like now is the best time in the past 20 years.” The American Farm Bureau Federation (AFBF), the nation's largest farm organization, indicated they would examine the details of the order, and President Zippy Duvall said they would work with the Biden administration “to ensure changes are consistent with our grassroots policy, and farmers and ranchers are provided greater flexibility to remain competitive in our growing economy.” Several other groups welcomed the action, with a handful indicating that it was not enough. But that seems to be the case with almost any government regulatory action. But the North American Meat Institute said they were opposed to the potential changes. “Government intervention in the market will increase the cost of food for consumers at a time when many are still suffering from the economic consequences of the pandemic,” said Julie Anna Potts, president and CEO of the Meat Institute. But perhaps one of the more grass-roots issues that Vilsack announced on Friday was that USDA was going to put $500 million in grants and loans together to help increase meat processing capacity in the U.S. “We have got to expand the amount of processing capacity in this country,” Vilsack said during a news conference in Iowa on Friday. “We can no longer rely on a handful of processing companies to do the job, to make the market competitive, to do right by farmers” and “to ensure as well that we have a resilient food supply system.” But the funding will not arrive immediately. USDA first will issue a request for information and use that to form the basis of a proposed rule for the meat plant expansion effort and then it will have to go through a final rulemaking, so it will take into Fiscal Year (FY) 2022 before those funds will be available. And there would be more than $150 million that would be earmarked to small and very small meat processors, the kind that dot farm country and process animals for customers. The latter part of the effort is aimed at helping those plants weather the pandemic and expand. So we will see. The grant effort to expand capacity holds promise, and in particular to help those small facilities expand as well as they have been inundated with animals to process. Key for the bigger grant/loan effort is how complex USDA makes the effort and that is something that will need to be watched closely, Washington Insider believes.
| Rural Advocate News | Monday July 12, 2021 |
Transportation Issues in Focus With Biden Executive Order Several areas were addressed in a sweeping executive order signed by President Joe Biden July 9, including several that dealt with transportation issues. One element of the order would ask the Justice Department to work with regulatory agencies against foreign-owned shipping alliances and monopolized rail routes that the administration believes have driven up shipping costs nationwide. “It doesn't sound right to most people that there are three shipping companies that are dominating the market and upping and increasing costs for suppliers, small businesses, people across the country,” White House press secretary Jen Psaki said. “And on domestic freight railroad, the executive order urges the Surface Transportation Board to allow shippers to more easily challenge inflated rates when there is no competition between routes.” The American Association of Railroads says the coming competitive switching rule “would roll back the foundational market-driven principle that keeps the industry viable, reduce network fluidity, and ultimately undermine railroads' ability to serve customers at a time when freight demands have dramatically increased.” Plus, the Federal Maritime Commission will be ordered to deal with the fees and surcharges of ocean carriers. It will be important to read this executive order carefully as impacted sectors and businesses will be doing the same. The expectation is that some of the actions called for in the order will most likely be challenged in court.
| Rural Advocate News | Monday July 12, 2021 |
Biden White House Continues To Tout Rural Infrastructure Benefits The White House on Thursday (July 8) released a fact sheet touting provisions in the bipartisan infrastructure framework that create “economic opportunities for rural America.” The release highlights provisions to bring high speed internet to every home, ensure clean drinking water, fixing rural roads and bridges, building drought, fire and flood resilience, plugging orphan wells, cleaning up abandon mines and remediation of idle rural properties, connect rural communities through rail, build and upgrade airports, ports and waterways in rural America, and build electric transmission infrastructure. However, the bipartisan package is still a framework and not yet in legislative language and that is where important details of what the administration and lawmakers have in mind for specific actions will be key
| Rural Advocate News | Monday July 12, 2021 |
Monday Watch List Markets Traders will likely start the week checking rainfall amounts from over the weekend and the latest weather forecasts. At 10 a.m. CDT, USDA will release its weekly grain inspections report, followed by the July WASDE and Crop Production reports at 11 a.m. CDT. At 3 p.m., USDA will conclude with its Crop Progress report where most of the attention will be on crop conditions and winter wheat harvest progress. Weather Scattered showers will continue from the Midwest to the Gulf Coast Monday as an upper level system slowly weakens and moves northeast through the Midwest. Drier areas to the northwest will continue to see stress to developing and reproductive row crops.
| Rural Advocate News | Friday July 9, 2021 |
Global Food Prices Declined in June Global food prices fell in June for the first time in 12 months, according to the United Nation’s Food Price Index. Released Thursday, the June index averaged 124.6 points, down 3.2 points, or 2.5 percent, from May. However, the index is 33.9 percent higher than this time last year. The drop in June reflected declines in the prices of vegetable oils, cereals and, to a lesser degree, dairy prices, which more than offset generally higher meat and sugar quotations. The Cereal Price Index averaged 129.4 points in June, down 3.5 points, or 2.6 percent, from May. After reaching their highest level in May since January 2013, international corn prices dropped five percent in June, still 72 percent higher than 2020. The Vegetable Oil Index fell 9.9 percent, and dairy prices were down one percent. However, meat prices were up 2.1 percent from May, continuing the ninth consecutive month of increases, up 25 percent from June of last year. *********************************************************************************** School Nutrition Survey: Challenges Persists into New School Year A new survey of 1,300 school meal program directors reveals serious financial and operational challenges for the upcoming school year. The School Nutrition Association’s Back to School 2021 Survey also revealed grave concerns regarding the impact of future sodium regulations. SNA President Reggie Ross says, “School meal programs, which are critical to the health and success of millions of America’s students, face an uncertain future following the pandemic.” The survey found 97 percent of meal program directors are concerned about continued pandemic supply chain disruptions, and 90 percent worry about staff shortages. Meanwhile, 82 percent are concerned about low meal participation, and 86 percent revealed financial concerns. A majority of school nutrition directors also expressed concerns about future sodium regulations. Schools significantly reduced the sodium in school meals to meet Target 1 limits and are working toward Target 2 limits. However, only 11 percent anticipate meeting the Final Target, scheduled to take effect in July 2022. *********************************************************************************** Drought Monitor Reports Another Week of Hot, Dry Weather The latest U.S. Drought Monitor released Thursday shows 58 percent of the nation experiencing drought, with 38 percent in a severe or worse drought classification. Hot and dry weather continued across the West in the last week, expanding drought conditions. The excess heat increased evaporative demand, drying out soils and vegetation, and straining water resources. As commodity markets swing wildly based on weather, the Midwest and much of the Corn Belt will see more rain in the week ahead. Rainfall maps show relief coming for Iowa, North and South Dakota and Nebraska. A daily newsletter from Bower Trading suggests permanent losses have already occurred in some of the drier areas in the northwest and a full restoration of yield potential is not possible, but the better weather conditions expected during the next week should allow for a boost in yields in many areas. Rainfall is also expected in many areas of the Corn Belt not in drought conditions. *********************************************************************************** USACE Implements Drought Conservation Measures for Missouri River Water conservation measures were enacted for the second half of the Missouri River navigation flow support season. The U.S. Army Corps of Engineers Thursday said very dry conditions continue to impact the upper Missouri River basin above Sioux City, Iowa, despite recent heavy rainfall in the lower basin, with more rainfall in the forecast south of Sioux City. As a result of the low precipitation and widespread drought conditions in the upper basin, June runoff in the upper basin was 52 percent of average. The updated 2021 upper basin runoff forecast is 15.6 million acre-feet, 60 percent of average, the tenth driest year in the upper basin since 1898. USACE reduced the service level to support navigation by 1,500 cubic feet per second at Gavins Point dam. USACE Missouri River Chief John Remus says the reduction “is a necessary water conservation measure to ensure authorized purposes will be served in the short and long term.” *********************************************************************************** Lawmakers Seek Reimbursement for Dairy Farmers A group of lawmakers calls on the Biden administration to reimburse dairy producers for losses stemming from the COVID-19 pandemic and market-related losses. In a letter to President Joe Biden, the 24 lawmakers say, “We strongly urge you to ensure our producers are reimbursed for as much of the roughly $725 million in foregone Class I skim milk revenue as possible.” The lawmakers, led by New York Democrat, Representative Antonio Delgado, cite economic forces, market disruptions, and the COVID-19 pandemic, which created Class I mover-related losses. Representative Delgado states, “Our dairy farmers, especially small and mid-sized producers in the Northeast region, have been seriously impacted by these losses throughout the pandemic.” Jim Mulhern, National Milk Producers Federation President and CEO, says, “We commend Congressman Antonio Delgado for leading a coalition of his colleagues to ensure dairy producers in New York and across the country are reimbursed for as much of these losses as possible.” *********************************************************************************** USDA Announces $307 Million for Rural Water Projects The Department of Agriculture this week announced $307 million for rural water and wastewater infrastructure improvements. The funding goes to projects in 34 states and Puerto Rico to modernize rural drinking water and wastewater infrastructure. USDA is financing the projects through the Water and Waste Disposal Loan and Grant Program. The program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and stormwater drainage. The investments will help eliminate outdated pipes and service lines to safeguard public health and safety in rural communities. They will improve rural infrastructure for 250,000 residents and businesses. The funding follows President Biden’s announcement last week of a Bipartisan Infrastructure Framework that will make the largest investment in clean drinking water in American history. The Framework will replace all of the nation’s lead pipes and service lines, helping address barriers faced by communities of color, Tribal communities, and people who live in rural America.
| Rural Advocate News | Friday July 9, 2021 |
Washington Insider: Indoor Agriculture Seeing More Investment Urban agriculture has been rising in popularity even if it still makes up only a tiny part of the overall ag production picture. But the Wells Fargo Innovation Incubator is putting money toward five agricultural-technology startups that aim to develop process to make indoor farming more sustainable. Under the effort, the five startups would receive up to $225,000 each for their processes. Bloomberg reports one of the startups will include a genomics company and lighting-efficiency developer. They are seeking to work with the Department of Energy (DOE) National Renewable Energy Laboratory and the Donald Danforth Plant Science Center in St. Louis, Wells Fargo said. The bank innovation center noted that the combination of land degradation and water shortages are potentially threatening the ability of agriculture to meet global food demand based on the expectation that demand will rise 60% within the next 30 years. While not currently a viable alternative, Wells Fargo said that indoor farming "could be a reliable food source and can be tailored to demographics and tastes, but typically produces more greenhouse-gas emissions than field-grown crops." That greenhouse gas (GHG) emissions issue is a major focus right now for the Biden administration as they are targeting those emissions in their efforts to address climate change. That would be a key situation if there is to be any future for a growth in indoor farming. Indoor farming "has not met the bars of being environmentally sustainable at the moment," Claire Kinlaw, director of innovation commercialization at the Donald Danforth Plant Science Center, told Bloomberg in an interview. "We have to get past that." Two efforts would also seek to make lighting more efficient relative to indoor farming. SunPath and GroFlux are seeking to address those issues to meet challenges where things like tomatoes grow and create a canopy that can block the light. Bloomberg noted that SunPath aims to use fiber optics and tracking technology to get light to reach all the way to the ground. GrowFlux, on the other hand, would use existing LED lighting in a way that allows farmers to control light delivery to plants. They believe this would bring about an average energy savings of 20% to 30% for indoor farming efforts. Atlas Sensor Technologies focuses on water issues and would be looking at monitoring water hardness in rea-time with its ion exchange fiber-based technology. The goal is to reduce the cost and waste while improving how water softeners operate. Motorleaf would put attention on using artificial intelligence for indoor agriculture to provide greenhouse operators and those in the supply chain ways to optimize yields and lower their carbon foot print. New West Genetics is expecting to focus on proprietary, stable, high-yielding breed varieties for sustainable hemp production, delivering a highly productive crop that can support food, feed, biomass and specialty products for an expanding population. The effort now includes some 56 startups. Indeed these efforts could perhaps bring some shifts in the agricultural production situation and make it easier for urban agriculture to gain a foothold in heavily populated areas. And the challenges of energy use also loom large as the current indoor growing efforts require a fair amount of energy to replace what the sun provides. If these startups can provide success and bring some real-time results that can be demonstrated and most importantly replicated in an economically viable fashion, that could get the attention of policymakers. That could allow such efforts to start ups to nudge into the world of farm policy. After all, urban agriculture and specialty agriculture have their backers in Congress that would no doubt welcome these efforts if they can prove successful. So we will see. Their efforts will hinge on one key factor and that is getting their effort to become commercially viable and that will be a key issue to monitor as these efforts move forward if they are to become any kind of alternative for certain kinds of food production, Washington Insider believes.
| Rural Advocate News | Friday July 9, 2021 |
USTR Tai Discussed Aligning Ethanol Policies With Mexico Discussions between U.S. Trade Representative (USTR) Katherine Tai and top Mexican trade and agricultural officials included biofuels policies between the two countries. In a recap of the session issued by the Office of the U.S. Trade Representative, the officials discussed several ag-trade issues, but "they also discussed the potential mutual benefits of aligning Mexico and the United States' policy on ethanol gasoline blends." There was little detail offered in terms of what specifically "aligning" the two countries' policies would mean. But U.S. biofuel interests would no doubt welcome actions that would boost their ability to sell biofuels into a market that is geographically easy to reach.
| Rural Advocate News | Friday July 9, 2021 |
USTR Tai Raises GMO Approvals with Mexican Officials U.S. Trade Representative Katherine Tai met with Mexican Agriculture and Rural Development Secretary Victor Villalobos and Economy Secretary Tatiana Clouthier on Wednesday in Mexico City, raising several ag-trade-related issues. Tai "emphasized the importance of Mexico immediately resuming the authorization of biotechnology products," according to a brief readout of the session. However, it is not clear that Tai raised a key issue on GMOs -- the proposed ban on imports of GMO corn by the end of 2024. That issue remains clouded in uncertainty. Reuters reports that Villalobos has been pushing for feed corn to be exempted from the ban, a key situation given that Mexico imports around 16 million metric tons of corn (630 million bushels) from the U.S. to feed its livestock sector. Villalobos has assured USDA Secretary Tom Vilsack that there would be an exemption for U.S. corn used for feed, but the news service reported that his push within the Mexican government may be losing traction. Reuters quoted sources saying that Villalobos' deputy at the ag ministry, Victor Suarez, is pushing against the GMO corn imports across the board. An issue that Tai did raise relative to Mexico failing to approve new GMO corn varieties, also threatens to impact U.S. corn exports. But even the issue of GMO crop approvals could become a trade issue as there could be blockages of imports of corn into Mexico if they are from GMO varieties that the country has yet to approve. That is a situation U.S. corn farmers have faced in other markets before.
| Rural Advocate News | Friday July 9, 2021 |
Friday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT and expectations are low for new U.S. export sales. To end the week that began with a celebration of Independence Day, there are no other significant reports on Friday's docket. Traders have plenty to watch in terms of weather and will anticipate USDA's next WASDE report, due out Monday at 11 a.m. CDT. Weather Elsa will continue to move northeast with a threat for strong winds and heavy rain along the Northeast Coast Friday. A deepening upper-level low will spread over a frontal boundary later today and tonight with strong to severe thunderstorms expected from Nebraska through the Mid-Mississippi Valley. Strong winds, large hail and tornadoes will all be possible with this activity. Pockets of heavy rain can also be anticipated. There will likely be some additional showers farther north to help some corn and soybean fields in the Dakotas and Minnesota with more widely scattered showers near the Gulf Coast.
| Rural Advocate News | Thursday July 8, 2021 |
Vilsack Traveling to Nebraska Friday Agriculture Secretary Tom Vilsack travels to Omaha, Nebraska Friday to make a major announcement, according to the Department of Agriculture. Few details are available, but the White House this week announced President Joe Biden is preparing to address agriculture issues in an executive order. White House Press Secretary Jen Psaki earlier this week told reports the Department of Agriculture will engage in a series of rulemakings to increase competition in agriculture to boost farmers’ and ranchers’ earnings. The executive order, according to Psaki, will direct USDA to issue new rules under the Packers and Stockyards Act, and new rules defining when meat can bear Product of the USA labels, so consumers have accurate, transparent labels. Additionally, the executive order directs USDA to develop a plan to increase opportunities for farmers to access markets. The executive order will also give farmers the right to repair their equipment, according to the White House. *********************************************************************************** USTR Meets with USMCA Trade Representatives U.S. Trade Representative Katherine Tai spoke with officials from Mexico and Canada this week on trade issues. Trade representatives from the U.S., Mexico and Canada are meeting this week to discuss the first year of the U.S.-Mexico-Canada Agreement that replaced the North American Free Trade Agreement. A statement from the USTR office says Tai spoke with her Canadian counterpart about softwood lumber, dairy, and WTO reform. Tai also urged Canada to abandon its proposed unilateral digital service tax. Tai also met with Mexico’s Secretary of Agriculture and Secretary of Economy. This discussion focused on agriculture, including the stalled authorization of biotechnology products by Mexico, which Mexico recently stated the country would outlaw Genetically Modified corn for human consumption. Tai also discussed expanding access for U.S. fresh potatoes and the potential mutual benefits of aligning Mexico and the United States' policy on ethanol-gasoline blends. Finally, the USTR office says the discussion included implementation of USMCA’s environment chapter. *********************************************************************************** Broad-Based Growth Drives U.S. Beef and Pork Exports to New Heights U.S. beef and pork export value shattered previous records in May, according to the U.S. Meat Export Federation. Announced this week, beef exports also reached a new volume high in May, while pork export volume was the third-largest on record. USMEF President and CEO Dan Halstrom states, "The outstanding May performance is especially gratifying when you consider where red meat exports stood a year ago." May beef export volume soared to a record 133,400 metric tons, up 68 percent from a year ago, and value increased 88 percent. May pork exports totaled 283,600 metric tons, up 16 percent from a year ago and the third-largest on record. Export value exceeded $800 million for the first time in May, climbing 31 percent to $813.2 million. However, Halstrom cautioned that U.S. labor availability remains a major concern and limitation for the industry, and exporters continue to face significant obstacles when shipping product overseas. *********************************************************************************** NIFA Invests $14 Million in Animal Health and Disease Research The Department of Agriculture’s National Institute of Food and Agriculture Wednesday announced an investment of $14 million in research to protect agricultural animals from disease. The grants are part of NIFA’s Agriculture and Food Research Initiative’s Diseases of Agricultural Animals program area priority. NIFA director Carrie Castille says, “This research will help better understand, diagnose, control and prevent diseases in agricultural animals and aquaculture.” Funded projects will focus on developing new and improved vaccines, diagnostics and antimicrobial alternatives, along with breeding disease-resistant animals, and understanding better ways to manage animals to minimize disease outbreaks. NIFA recently awarded 31 projects under the program, including $500,000 to an Iowa State University effort to introduce a new approach to Vitamin A and Zinc supplements to help protect cattle against stress and respiratory disease. NIFA also awarded $500,000 to a University of Florida project to examine ways to improve immunity in pigs that can protect them from lung disease and influenza virus infections. ************************************************************************************ Zoetis Donating COVID-19 Vaccines to Support Zoo Animals Zoetis is donating more than 11,000 doses of its experimental COVID-19 vaccine to help protect the health and well-being of more than 100 species living in zoos, conservatories and sanctuaries. The vaccine is authorized for experimental use on a case-by-case basis by the Department of Agriculture and appropriate state veterinarians. The vaccine deployment to dozens of zoos follows Zoetis' response in January to a request from the San Diego Zoo following confirmed cases of COVID-19 in the gorillas at the San Diego Zoo Safari Park. Alex Herman, of Oakland Zoo in California says, “We're happy and relieved to now be able to better protect our animals with this vaccine.” Zoetis' COVID-19 vaccine is uniquely formulated for animal species. Although the virus is the same as in human vaccines, vaccines for animals vary based on the carrier that is used. The unique combination of antigen and carrier ensures safety and efficacy for the species in which a vaccine is used. ************************************************************************************ Farmers National Company Former CEO Joins Peoples Company Land brokerage and management firm Peoples Company, announced the hiring of Dave Englund as national accounts director Wednesday. Englund is the former President and CEO of Farmers National Company, retiring in April of this year after 34 years with the company. As President and CEO, Englund oversaw the management of over $9 billion in assets, including over two million farm and ranch acres across 26 states. Englund states, "In the months since retiring from Farmers National Company, I came to realize I still have a strong passion for the business and a desire to continue serving farmers and landowners." As the director of national accounts, Englund will use his experience and relationships across the country to develop and implement client growth opportunities, elevate Peoples Company's current performance and strategy, and build and maintain long-term relationships with business prospects, partners, and affiliates. Peoples Company says the addition of Englund “adds tremendous value for our clients.”
| Rural Advocate News | Thursday July 8, 2021 |
Washington Insider: Biden Trade Shift Ends TAA The shift in trade policy by the Biden administration was one with several influences, including their focus on the U.S. economy and the pandemic and trying to bring what they viewed as stability after a tumultuous four years under the Trump administration. That shift in trade policy had President Joe Biden signaling that inking new trade deals was down on their list of priorities. One impact of that was the July 1 expiration of Trade Promotion Authority (TPA), which helps an administration in trade negotiations with other countries and trading blocs. Several administrations have used TPA to reach trade agreements, including the Trump administration which utilized it to put the U.S.-Mexico-Canada Agreement (USMCA) in place. That allows an administration to negotiate a trade deal and bring it back to Congress for an up or down vote with no amendments possible. But another casualty of this shift on trade policy is the Trade Adjustment Assistance (TAA) program. While not directly linked to TPA, it also ended July 1. TAA provides aid for Americans who lose their jobs or whose hours and wages are cut due to competition from imports. While the Senate approved a 23-day extension of TAA, the House failed to act, shuttering the trade assistance effort. While TAA has not totally stopped, there are no new applications from workers that can be approved. Payments to those already receiving the help will continue. An estimated 48,000 workers, primarily in service industries, will lose eligibility for benefits over the next year, according to the Department of Labor, Bloomberg reported. Manufacturing workers can still receive support, but case-management services that help them access job training and find reemployment will no longer receive federal funds. The services sector was one of the hardest hit by the pandemic and the Labor Department said that workers in the hospitability, utilities and warehousing sectors accounted for more than half of the TAA petitions that the agency received. On the Hill, there is plenty of finger pointing as to who is to blame for the situation. House Ways & Means Committee Chairman Richard Neal, D-Mass., and trade subcommittee Chairman Earl Blumenauer, D-Ore., blamed Republicans for the situation. "While our country continues to deal with the reverberating effects of the pandemic, this reversion will also disproportionately harm women and minority workers, and will prevent workers affected by trade from China from accessing the program," they said. "House Democrats are looking for the earliest opportunity to put the program back on track, and will also seek to increase and modernize TAA's benefits." But House Ways & Means Committee Ranking Member Kevin Brady, R-Texas, declared that a three-week extension of the program "makes no sense. Trade Adjustment Assistance should be paired with Trade Promotion Authority." And that is about the main linkage there has been between the two programs. The last time TPA was renewed in 2015, the renewal of TAA was paired with it to bring Democratic votes. It is seen as a way to get both Democrats and Republicans, as Republicans typically like to see TPA renewed and will back TAA as it helps bring Democratic votes for TPA. Perhaps even more surprising is that the TAA expiration came even as the Biden administration and U.S. Trade Representative Katherine Tai have touted their "worker-centric" trade policy. Some observers think that rings a little hollow now with the TAA lapse. The Biden White House has defended their inaction, with an official telling Bloomberg that Biden "has strongly endorsed rapid passage" of TAA, adding there are several pathways to make it happen quickly. "We will only pursue new trade deals after we have made investments in American workers and communities," the official told the news service. "Signing new trade deals is not the only metric of a successful trade policy. We are continuously pursuing inclusive, worker-centered trade policies that reinforce the United States' resiliency, recovery, sustainability, and competitiveness." Now if history is any guide, workers could still see TAA benefits restored retroactively as that happened in 2015 -- TAA benefits were restored back to the start of 2014. So we will see. The shift in trade policy by the Biden administration has been more in style than in substance except for their downplaying inking new trade deals. But the potential for TPA and TAA to be restored is something that should be watched closely, Washington Insider believes.
| Rural Advocate News | Thursday July 8, 2021 |
CFAP 2 Payments Again Nudge Higher Payments approved under the Coronavirus Food Assistance Program (CFAP 2) stood at $13.75 billion as of July 5, up slightly from the prior week. Acreage-based payments total $6.28 billion, with $3.45 billion for livestock, $2.74 billion for sales commodities, $1.22 billion for dairy and $63.77 million for eggs/broilers. Payments under the CFAP 1 program also edged up to $10.59 billion. While USDA has said they will make payments to contract poultry growers, payments that were announced earlier, there is still no word on when the agency plans to issue such payments to contract hog producers. Indications are there are still regulatory issues that have to be addressed for those payments to move forward. And there is also the matter of additional dairy payments that were expected to be announced by USDA Secretary Tom Vilsack in Wisconsin recently, but he did not make the trip as the focus of the visit by Vilsack and President Joe Biden was shifted to only be on infrastructure.
| Rural Advocate News | Thursday July 8, 2021 |
'Right to Repair,' Other Ag Regs Coming The White House on Tuesday signaled there is an executive order coming from President Joe Biden that would direct USDA to draw up regs coming on agriculture, including 'right to repair' issue, boost competition. USDA will also be ordered to develop new rules on concentration in the industry. White House Press Secretary Jen Psaki said the action will focus on several fronts to "increase competition in agricultural industries to boost farmers' and ranchers' earnings, fight back against abuses of power by giant agribusiness corporations, and give farmers the right to repair their own equipment how they like." The effort will also direct USDA to develop regulations relative to the Packers and Stockyards Act. Those regulatory actions are not necessarily new as USDA Secretary Tom Vilsack has previously said the agency was going to develop new rules covering certain areas of the law. Further, Psaki said that the order will also direct USDA to come up with new rules relative to the "Product of the USA" labeling effort which is voluntary. USDA will also be ordered to come up with plans to "increase opportunities for farmers to access markets and receive a fair return, including supporting alternative food distribution systems," Psaki said, including farmers markets, and "developing standards and labels that consumers can choose to buy products that treat farmers and agricultural workers fairly."
| Rural Advocate News | Thursday July 8, 2021 |
Thursday Watch List Markets Thursday's reports begin with U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CDT. The U.S. Energy Department will report on natural gas inventory at 9:30 a.m., followed by other energy inventories, including ethanol at 10:00 a.m. Grain traders will continue to pay close attention to the latest weather forecasts and any news of export sales. USDA's weekly export sales report is scheduled for Friday morning, due to this week's holiday. Weather The center of Tropical Storm Elsa will continue to move from the coastal Southeast through the Mid-Atlantic Thursday with more isolated to scattered showers east of the Rockies. Only some local drought relief is expected across the drier northwest growing areas, which could see some severe weather this afternoon and evening
| Rural Advocate News | Wednesday July 7, 2021 |
AG Economy Barometer Falls Again For the second month in a row, the Ag Economy Barometer declined sharply. Released Tuesday, the most recent survey fell to 137, 21 points below a month earlier, and the weakest sentiment reading since July 2020. Producers in June were less optimistic about both current conditions on their farming operations as well as their expectations for the future. Weakening perceptions of current conditions on their farms was the biggest driver of the barometer’s decline as the Index of Current Conditions declined 29 points to 149, the lowest reading since September 2020. Producers were also less optimistic about the future as the Index of Future Expectations declined 17 points to 132, the lowest Future Expectations Index reading since July 2020. Since peaking in April, producers’ perception of their farms’ financial performance has fallen sharply. Farmers also expect their input costs to rise much more rapidly in the year ahead than they have over the last decade. *********************************************************************************** Barchart Increases U.S. Crop Production Forecast Barchart Tuesday raised their July 2021 Yield and Production forecasts for U.S. corn and soybeans. Released on the first Tuesday of each month during the growing season, the forecasts offer users insights to help their crop marketing and business decisions ahead of when traditional government reports are released. U.S. Corn Production is projected at 14.6 billion bushels with a yield of 176.5 bushels an acre, compared to USDA projection of 15 billion bushels and yield of 179.5. For soybeans, Barchart expects production at 4.3 billion bushes with a 50 bushel per acre yield. USDA forecasts 4.4-billion-bushel production of soybeans this year with yield at 50.8 bushels. The market data company also released their initial Yield and Production forecasts for Canadian spring wheat and soybeans. Canadian spring wheat production is forecasted at 881 million bushels, with yield at 55.1 an acre. Barchart’s Canadian soybean production forecast calls for 228.1 million bushels with an average yield of 43 bushels an acre. *********************************************************************************** USDA Changes Cover Crop Grazing Policy Farmers with crop insurance can now hay, graze or chop cover crops for silage, haylage or baleage at any time and still receive 100 percent of the prevented planting payment. The Department of Agriculture announced the change Tuesday. Previously, cover crops could only be hayed, grazed or chopped after November 1, otherwise the prevented planting payment was reduced by 65 percent. USDA Acting RMA Administrator Richard Flournoy states, “We are dedicated to responding to the needs of producers, and this flexibility is good for agriculture and promotes climate smart agricultural practices.” RMA added the flexibility as part of a broader effort to encourage producers to use cover crops, an important conservation and good farming practice. The decision to allow flexibility for the 2021 crop year and to make the change permanent for future years builds on the advanced research and identified benefits cover crops have supporting healthy soils and cropland sustainability efforts. ************************************************************************************ Share of Income Spent on Food Dropped 10% In 2020, A Historic Low The share of U.S. consumers' disposable income spent on food decreased 10.1 percent during the COVID-19 pandemic last year. The share declined to 8.6 percent, the lowest share in the past 60 years, according to the Department of Agriculture’s Economic Research Service. The share of disposable income spent on food in the United States was relatively steady over the last 20 years, decreasing from 9.95 percent in 2000 to 9.58 percent in 2019. Consumers spent 1.4 percent more of their incomes for food at home from 2019 to 2020, while they spent 22.2 percent less of their incomes on food at restaurants. Changes in the shares of income spent on food in 2020 resulted, in part, from pandemic-related closures and restrictions at food-away-from-home establishments, as well as from the largest annual disposable income increase in 20 years. The increase was driven by additional Government assistance to individuals in 2020, including stimulus payments to households and increased unemployment insurance benefits. ************************************************************************************ NCGA Women and Mentors Program Holds First-Ever Conference The National Corn Growers Association recently hosted the first-ever in-person meeting of the Women and Mentors program. The 15 attendees learned skills through the retreat to help them make an impact on not only the agricultural industry but also in their other endeavors. Sponsored by Bayer and Syngenta, the retreat allowed attendees to network and be supported by other female industry leaders to inspire and empower them. The conference also helped the attendees, who met virtually for three sessions prior to last week, gain a network of individuals invested in seeing more women in leadership roles within agriculture, and to become a mentor or a mentee at the conclusion of the conference. The group will continue the program with quarterly virtual calls on leadership topics, and plan to continue with an in-person session annually, increasing the size of this network as we encourage up-and-coming female leaders to take the next steps in their leadership journeys. ************************************************************************************ American Royal Begins Strategic Leadership Search The American Royal Association is beginning a strategic planning process that includes a search for a new chief executive officer, following the departure of Glen Alan Phillips later this month. Phillips will take a new role in his home state of Texas as chief operating officer with Rodeo Austin. The move opens an opportunity for the American Royal Association “to build upon momentum and define the next version of the American Royal” at its new home in Kansas City, Kansas. Shortly before the onset of the COVID-19 pandemic, the American Royal announced it was one step closer to its future home, after acquiring 115 acres. The Association’s vision is to be the national destination for the food and agriculture industry and the “Epicenter of Agriculture.” A Kansas City tradition since 1899, the American Royal provides opportunities for youth and adults from around the world to compete in a variety of agriculture events.
| Rural Advocate News | Wednesday July 7, 2021 |
Washington Insider: New Trade Battle Over Taxes With the civil aircraft disputes with the European Union and UK "resolved" via an agreement among the three parties to not take any trade actions for five years, attention with Europe and now Canada is shifting to another trade issue that could become even more difficult to find a resolution. Digital taxes are likely to be a new trade fight front even as the U.S. has signaled they will not be taking actions on trade like their predecessors in the Trump administration. And this is now involving the U.S. Treasury Department and not just the U.S. Trade Representative Katherine Tai. Group of 20 (G20) finance ministers are meeting in Vienna this week, and Bloomberg is reporting, "U.S. Treasury Department officials indicated in a call with reporters Tuesday that a potential digital-tax proposal might fall afoul of a deal struck last week that aims to eliminate so-called digital service taxes." The U.S. has signaled they are not in favor or several countries' digital tax plans, arguing they discriminate against U.S. companies. European countries are under pressure from several governments within the EU that global tech companies need to be taxed. While European countries believe the new plan would comply with the international agreement on digital services taxes, the U.S. counters that determination cannot be made until the international agreement is completed and its full text is readied which is hoped for in October. The Organization for Economic Cooperation and Development (OECD) worked out the deal with 130 countries and jurisdictions last week which would include setting a minimum rate for corporations. There are also rules under the agreement, Bloomberg noted, that would "share the spoils from multinational firms." And the deal also contained a provision to prevent new laws that attempt to apply taxes to cross-border digital sales. But even though the international agreement would set in place a 15% minimum tax, Bloomberg said the U.S. is trying to boost that level, noting the U.S. has sought a 21% rate for the overseas earnings of U.S. companies. One of the Treasury officials briefing reporters noted that the part of the package that would bring a redistribution of corporate taxes based on where firms do business and not just where they have their headquarters is one that would require a multilateral treaty. Therein lies another potential challenge for the U.S. -- a multilateral treaty requires a two-thirds majority in the U.S. Senate. Given the 50-50 split between Democrats and Republicans and few, if any, Republicans willing to back a tax increase, odds are low any such treaty would be approved by the chamber. However, Treasury argued that the U.S. proposal on this front regarding tax redistribution did not focus just on digital companies nor did it target U.S. businesses. The G20 finance ministers are also expected to see renewed attention on the recovery from the COVID pandemic and U.S. Treasury Secretary Janet Yellen will press other countries not to remove fiscal support for measures to fight the virus and its economic impact. Meanwhile, USTR Tai met with Canadian Trade Minister Mary Ng Tuesday and called on Canada to abandon its proposed unilateral digital-services tax, according to Bloomberg, citing an emailed statement from Tai's office. But their discussion did not stop there and it included softwood lumber and dairy. That comes in the wake of the U.S. opting to pursue a dispute settlement request under the one-year-old U.S.-Mexico-Canada Agreement (USMCA). And Tai has pledged that the U.S. would get its litigation briefcase back out if countries opted to put any border taxes linked to climate change in place. So we will see. The U.S. is perhaps shifting a bit on the trade front, not willing just to try to get old disagreements resolved as it appears other countries around the world could be trying to use that stance to their advantage and it is a situation that needs to be watched closely, Washington Insider believes.
| Rural Advocate News | Wednesday July 7, 2021 |
Keystone XL Pipeline Developer Seeks $15 Billion From U.S. Canada's TC Energy said it is seeking $15 billion in damages from the United States government over the decision by President Joe Biden early in his administration to cancel the Keystone XL pipeline project. In a statement on Friday, the company said it had filed a notice of intent with the State Department to begin a legacy North American Free Trade Agreement (NAFTA) claim under the U.S.-Mexico-Canada agreement. The company said it aims to "recover economic damages resulting from the revocation of the Keystone XL Project's Presidential Permit," adding that it suffered a loss of more than $15 billion "as a result of the U.S. Government's breach of its NAFTA obligations."
| Rural Advocate News | Wednesday July 7, 2021 |
U.S. Agricultural Exports and Imports Were Nearly Even in May U.S. agricultural exports edged up to $14.66 billion in May after being at $14.54 billion in April, while U.S. agricultural imports were at $14.56 billion compared with $14.35 billion in April. That left a trade surplus of $95.9 million for the month, about half of the $189 million surplus reported in April. So far in Fiscal Year (FY) 2021, U.S. agricultural exports have reached $121.61 billion against imports of $105.79 billion for a cumulative surplus of $15.82 billion. The forecast for U.S. agricultural exports in FY 2021 that was updated in May looks for shipments to total $164 billion and imports to be $141.8 billion which would leave a surplus of $22.2 billion. To reach the forecast marks, U.S. agricultural exports would need to be at $10.6 billion the next four months with imports at just $9 billion. Both marks would seem to be low based on trade data thus far in FY 2021 and would mark a major slowdown on imports that does not seem likely given the improving U.S. economy.
| Rural Advocate News | Wednesday July 7, 2021 |
Wednesday Watch List Markets There are no major reports scheduled Wednesday, but minutes from the latest Federal Reserve meeting are due out at 1 p.m. CDT. Traders will be paying attention to the latest weather forecasts and rainfall amounts. Weekly energy inventory reports are set for Thursday at 10 a.m. CDT, due to this week's holiday schedule. Weather Light to moderate rain will cross the Midwest and cover the Gulf Coast Wednesday. A cooler pattern is also in store for the northern and western Midwest. This combination is favorable for pollinating corn and flowering and pod setting soybeans. In the Southeast, Tropical Storm Elsa will produce locally heavy rain. Other crop areas will be dry with no easing of drought in the entire western U.S.
| Rural Advocate News | Tuesday July 6, 2021 |
USMCA Trade Officials Meeting in Mexico City This Week Trade representatives from the United States, Mexico and Canada meet this week to commemorate the first anniversary of the United States-Mexico-Canada Agreement. Mexico’s Secretary of Economy, U.S. Trade Ambassador Katherine Tai, and Canada’s Minister of Small Business, Export Promotion and International Trade will attend the meeting. The officials meet Tuesday in Mexico City to exchange views on the achievements reached during the agreement's first year and discuss opportunities to ensure the long-term growth and competitiveness of the region. The U.S. Trade Representative’s Office says in a statement the meetings are an opportunity to continue the productive dialogue established during the first Free Trade Commission meeting in May. Further, USTR says the meeting shows how the United States, Mexico, and Canada are working together as friends, neighbors, and allies to build a more competitive, inclusive and resilient North American economic partnership. USMCA replaced the North American Free Trade Agreement and went into force on July 1, 2020. *********************************************************************************** Federal Court Reverses EPA Rule on Year-round E15 A federal appeals court late last week reversed a 2019 rule by the Environmental Protection Agency that lifted restrictions on the sale of E15. American Fuel & Petrochemical Manufacturers vs. EPA challenged the rulemaking that allowed the year-round sale of E15. Growth Energy, the Renewable Fuels Association, and the National Corn Growers Association say in a joint statement, “We disagree with the court’s decision to reject EPA’s move to expand the RVP waiver to include E15, a decision that could deprive American drivers of lower carbon options at the pump and would result in more carbon in the atmosphere.” Last August, the groups filed a brief as intervenors in the lawsuit. The brief provided support for EPA’s position that parity in RVP regulations for E10 and E15 is consistent with the provisions of the Clean Air Act and the congressional intent behind those provisions. The groups participated in oral arguments for the case in April of this year. *********************************************************************************** Growth Energy Applauds New Legislation to Clarify Oil Refinery Exemptions Growth Energy CEO Emily Skor last week applauded the introduction of the Small Refinery Exemption Clarification Act of 2021 in the house of Representatives. Randy Feenstra, an Iowa Republican and Angie Craig, a Minnesota Democrat, introduced the legislation. The legislation seeks to clarify who is eligible under the Renewable Fuel Standard SRE program. Skor states, “We firmly believe that refiners have had 16 years to adjust their operations to comply with the RFS, and that EPA’s SRE authority was meant to steer them toward compliance rather than provide a never-ending excuse to avoiding their blending obligations.” Growth Energy also supports the House and Senate versions of the RFS Integrity Act, which would add deadlines for refinery SRE petitions so EPA can properly account for them in future year RVOs. In addition, Growth Energy supported letters led by lawmakers in both chambers who wrote the White House, EPA, and USDA on the market implications of SRE authority abuse. *********************************************************************************** NCBA, NFU Welcome USDA Product of USA Action The National Cattlemen’s Beef Association and National Farmers Union support the top to bottom review of the Product of the USA label. The review, announced last week by the Department of Agriculture, follows a vote to strengthen the regulation by the Federal Trade Commission. NCBA President Jerry Bohn says, “NCBA members have voiced concerns about the potentially misleading use of the label and we thank USDA for responding to those concerns.” National Farmers Union has long been concerned about the label, which is legally applied to beef and pork that was born, raised, and slaughtered in another country but processed in the United States. The organization recently urged FTC and USDA to strengthen voluntary U.S. origin claims on labels and penalize those who incorrectly label products. NFU President Rob Larew says, “This isn’t just a problem for consumers – it hurts farmers and ranchers, who can’t differentiate their product or earn a premium for offering a local option.” ************************************************************************************ CAST Report: USDA Can Offer Tools to Stem Climate Change A new report shows agriculture can provide 10-20 percent of the additional sequestration and emissions reductions needed for the nation to achieve net-zero emissions by 2050. Released last week by the Council for Agricultural Science and Technology, the report summarizes the different ways agriculture can provide mitigations to climate change and sequester carbon dioxide. The scientists say agriculture and forestry are the only sectors that have the potential to be a net sequestration sink for fossil-fuel generated greenhouse. The paper addresses several key topics, including nutrient and pest management, animal systems, ag technologies, the food supply chain and carbon markets. The report says USDA can partner with producers to reduce greenhouse gases through carbon sequestration. Additionally, USDA can help reduce emissions from rural energy cooperatives, bolster private working lands, public forests and grasslands, promote sustainable bioenergy wood products, contribute to the scientific understanding of climate change, and invest in climate-smart economic development in rural communities. ************************************************************************************ Applications Open for Operation Lifesaver Rail Transit Safety Education Grants Operation Lifesaver Inc. is accepting applications for competitive Rail Transit Safety Education Grants. Operation Lifesaver is a non-profit public safety education and awareness organization. Its work is dedicated to reducing collisions, fatalities and injuries at highway-rail crossings and preventing trespassing on or near railroad tracks. The grants offer a total of $220,000 in funding for transit agencies and governments that provide transit service to conduct rail transit safety education and public awareness initiatives. OLI Executive Director Rachel Maleh (mall-leigh) states, “We are grateful to the Federal Transit Administration for the agency’s support that helps make these grants, as well as our ongoing rail safety education and outreach efforts, possible.” Maleh noted that grant amounts are capped at $20,000 and require non-federal matching funds of at least 25 percent of project costs. Projects must be focused on safety education or public awareness initiatives. All applications are due by July 31, 2021. Learn more at oli.org.
| Rural Advocate News | Tuesday July 6, 2021 |
Washington Insider: Global Food Prices Rising Food prices are always a hot-button topic and they have reemerged as one this year. As the global economy emerges from the pandemic, food prices in several countries have posted sizable increases, with the Washington Post highlighting the situation in Russia, Nigeria and Argentina. The UN Food and Agriculture Organization (FAO) will update its global food price index this week after the month-ago increase sent global food prices according to their Food Price Index to the highest level since 2011. "A variety of factors are to blame, including a surge in orders from China, fluctuating oil prices, a sliding U.S. dollar, and looming above all: the pandemic, and in some places, reopening," the Post noted. However, they also noted, "Global prices, like the FAO index tracks, and the price that a consumer pays are rarely in sync." And more are starting to mention climate change as a potential long-term factor for the food price outlook. In Nigeria, the Post details the prices for a pot of jollof rice have risen, with the rice component up 10%, the price of a small tin of tomatoes used to make the dish is up 29% and onion prices are up by one-third, according to a Nigerian research firm. In fact, the item notes that the price of onions in Lagos, Nigeria, has doubled in price and there have been heists targeting onions. Border closures enacted during the pandemic tightened food supplies along with the devaluation of Nigeria's currency. In Russia, the world's top exporter of wheat, pasta prices have gone up dramatically. This has pushed up the vegetable, meat, dairy and pasta staple borscht. In all, prices for ingredients have risen some 12% since before the pandemic hit. But pasta prices caught the attention of President Vladimir Putin who decried people eating "navy-style pasta" which is a Soviet-era dish eaten during hard times. "This is unacceptable," Putin said, "with such large harvests." The situation has seen export limits put on wheat and other grains along with price controls on pasta. But even those actions have not made consumers in Russia feel any relief as the post noted poll results this spring rated food prices as the country's biggest issue by 58% of Russians. But those government actions can only work so long and the heavy hand of government often times leads to problems returning and potentially becoming even more severe. Enter Argentina, where the country's beef has been a key example of the food price situation. Over the past year, the price per kilogram of short ribs is up over 90%, according to the Institute for Promotion of Argentine Beef. The situation reached a point where the country opted to halt all beef exports for a month and they have come to agreement on resuming those exports, but only at 50% of the prior volume through the end of the year. But developing countries in particular are wary and sometimes outright scared of food-price increases. Hungry citizen become unhappy citizens and those can lead to great pressure on governments for actions to address those rising costs. Here in the U.S., commodity prices have risen this year on a surge in Chinese demand for corn and other grains as the country seeks to make sure it has enough feed to produce meats and other proteins for their expanding economy. Couple that with dry conditions in areas like the Northern Plains where hard red spring wheat and durum, the latter being the main wheat used to make pasta, and wheat prices have soared on the Minneapolis futures market. Indeed, consumers here are facing higher costs. USDA has raised its forecast for overall food price inflation and its outlook for food at home (grocery store) and food away from home (restaurant) prices. Overall food price inflation is now seen at 2.5% to 3.5% in 2021, up from their month-ago outlook that food price inflation would be 2% to 3%. Grocery store prices are now seen rising 2% to 3% in 2021 compared with their month-ago outlook that grocery store price would rise 1.5% to 2.5%. Restaurant prices are now seen up 3% to 4% from 2020 levels, an increase from the prior outlook that they would increase 2.5% to 3.5%. The updated forecasts also mean that prices are seen rising for all three categories by more than their 20-year average. Those averages are 2.4% for all food prices, 2.8% for restaurant prices, and 2% for grocery store prices. Even with the latest increase in USDA's forecasts, food prices in 2021 are not yet seen rising as much as they did in 2020. The pandemic obviously is factoring into the price situation. But, in the U.S., leading up to 2020 and now 2021, consumers saw grocery store prices either increasing at less than the 20-year average or decreasing over the 2015 to 2019. So we will see. The food price situation in the U.S. is rising, but other countries are seeing even greater impacts. But the situation needs to be watched closely, especially if major trading partners opt to try and keep more supplies at home as that could open market opportunities for U.S. producers, Washington Insider believes.
| Rural Advocate News | Tuesday July 6, 2021 |
Another Federal Judge Puts Hold on USDA Debt Forgiveness Another preliminary injunction has been issued on USDA's debt forgiveness effort for socially disadvantaged farmers, with the U.S. District Court for the Northern District of Texas also granting a motion for class certification in the matter. Judge Reed O'Connor rejected the government's arguments in the case and issued the second preliminary injunction on the matter with a judge in Wisconsin expected to issue a decision yet this month on a case filed there. The Texas judge ruled that USDA has failed to provide evidence of how socially disadvantaged farmers have been discriminated against. In a frequently asked question section, the Farm Service Agency said the payments are for "decades of well-documented discrimination against socially disadvantaged farmers and ranchers by USDA." USDA has acknowledged the court action in Florida on the debt relief effort but has continued efforts to get ready to make the payments. "Borrowers should continue to submit paperwork (signed offer letters) and USDA will continue to accept these letters and process them," the agency noted. "USDA will be prepared to provide the debt relief authorized by Congress at the earliest opportunity, depending on the ongoing litigation." But USDA said the payment timeline would be updated once they have "received updates regarding this litigation." USDA's initial expectation was that when a signed offer letter was received by the agency, it would take three weeks to pay off a loan and issue a payment to a borrower. The Farm Service Agency (FSA) has also issued guidance to state and county offices for the debt forgiveness effort relative to Farm Storage Facility Loans (FSFLs) but said that guidelines for action relative to the Farm Loan Program (FLP) would be provided at a later date.
| Rural Advocate News | Tuesday July 6, 2021 |
FDA Eyes July 2022 Guidance on Labels For Plant-Based Dairy Alternatives The Food and Drug Administration said it plans on releasing guidance on the issue of labeling plant-based dairy alternatives by July 2022, an action that will no doubt be a matter of contention for both dairy and plant-based food interests. The dairy industry has opposed allowing plant-based dairy alternatives to use terms like "milk," "yogurt," or "cheese" on their labels and has called on FDA to enforce standards of identity for milk which states that the term "milk" should only apply to a beverage derived from cows. FDA in 2018 issued a request for information to determine whether consumers are confused by plant-based products that are labeled as "milk." The National Milk Producers Federation petitioned FDA to make a distinction between dairy and plant-based products, but the plant-based food industry has fought the proposal. It is not clear where FDA will land on the issue, but the timeline released by the agency indicates a timeline for addressing the matter.
| Rural Advocate News | Tuesday July 6, 2021 |
Monday Watch List Markets Back from a three-day weekend, traders will be checking the latest weather forecasts and rainfall amounts from over the weekend. USDA's weekly grain inspections report is set for 10 a.m. CDT, followed by Crop Progress at 3 p.m. Weather Tuesday features light to moderate rain, locally heavy, in the northern Midwest. We'll also see locally heavy rain in south Texas and along the Gulf Coast. Forecast guidance over the next seven days indicates rain of moderate to heavy intensity spreading across much of the remainder of the Midwest, along with more seasonal temperatures. This would be favorable for corn pollination and soybean flowering and pod setting.
| Rural Advocate News | Friday July 2, 2021 |
USDA to Review Product of USA Labeling The Federal Trade Commission Thursday voted to strengthen its enforcement of the Made in USA standard. Agriculture Secretary Tom Vilsack responded, "American consumers depend upon accurate, transparent labels to obtain important information about the food they consume." The FTC requires products to display a country of origin. However, if the products are imported and produced in the United States, they can display the Made in USA label. USDA announced last year the intention to conduct rulemaking to address the concern that the voluntary "Product of USA" label may confuse consumers about the origin of food products. Following that effort, Vilsack says USDA is initiating a top-to-bottom review of the “Product of USA” label. Vilsack says the review will help determine what the label means to consumers. Vilsack adds, “I am committed to ensuring that the Product of USA label reflects what a plain understanding of those terms means to U.S. consumers.” *********************************************************************************** Dairy Industry Urges Renewal of Trade Promotion Authority Dairy groups call on the Biden Administration to seek renewal of Presidential Trade Promotion Authority, which expired Thursday. The National Milk Producers Council and U.S. Dairy Export Council say the move will foster further expansion of U.S. dairy exports. TPA lays out congressional expectations for trade agreements negotiated by the administration and establishes a clear pathway for straightforward congressional input. To remain globally competitive, future trade agreements are vital for U.S. dairy farmers, workers, and manufacturers, according to the groups. The call for renewal comes on the one-year anniversary of the U.S.-Mexico-Canada Agreement, enacted with the help of TPA. For dairy, USMCA provisions established improvements to market access in Canada and set clear standards for trade with Mexico. USDEC President and CEO Krysta Harden states, “Our ability to retain foreign customers in an increasingly competitive global dairy market is absolutely essential to farmers and dairy manufacturing facilities employing workers here at home.” *********************************************************************************** United States, Taiwan Talk Trade and Investments Priorities The United States and Taiwan held the eleventh Trade and Investment Framework Agreement, or TIFA, Council meeting this week. The discussions, held virtually, focused on enhancing the longstanding trade and investment relationship between the United States and Taiwan. The TIFA establishes council meetings as the key mechanism for trade and investment dialogue between the U.S. and Taiwan. At the TIFA Council meeting, U.S. officials emphasized the importance of the U.S.-Taiwan trade and investment relationship and expressed a desire for stronger and more consistent engagement going forward. The U.S. and Taiwan authorities committed to intensify engagement aimed at addressing outstanding trade concerns, including market access barriers facing U.S. beef and pork producers, as well as concerns raised by the U.S. in areas such as copyright legislation, digital piracy, financial services, investment and regulatory transparency. Taiwan is the United States’ 9th largest goods trading partner, with two-way goods trade totaling $90.9 billion in 2020. ************************************************************************************ NPPC Calls for Labor Reform, Launches New Foreign Worker Campaign The National Pork Producers Council Thursday introduced a campaign, “Year-Round Pork Needs Year-Round Workers.” The campaign highlights the vital role of foreign-born workers across the U.S. pork industry and the need for comprehensive labor reform to address a labor shortage. NPPC President Jen Sorensen says, “Unfortunately, current visa programs don’t provide access to enough workers to meet our labor needs on farms and in plants.” The campaign features the stories of four foreign-born workers and their employers in the U.S. pork industry. NPPC is urging Congress to address labor reform that both opens the H-2A visa program to year-round labor, without a cap, and provides legal status for agricultural workers already in the country. NPPC says pork producers offer jobs with good pay and benefits, but most Americans do not live near hog farms or harvest facilities and rural populations continue to decline, causing the industry to be largely dependent on foreign-born workers. ************************************************************************************ CoBank: China Changes Buying Tactics as U.S. Grains Turn Volatile China shook up the U.S. feed grain export market over the last year, purchasing massive quantities of U.S. soybeans, sorghum and corn. A new report CoBank's Knowledge Exchange finds the outlook for continued U.S. grain exports to China remains strong, primarily due to its projected growth in pork production. However, the current U.S. grain run has entered a new phase marked by significant price volatility, and China is leveraging that volatility to its advantage. A CoBank researcher says, "The increased volatility in grain prices has led China to shift its buying pattern to wait for price weakness before committing to additional purchases, as well as to contract now for the next marketing year." China's heightened demand resulted in record-high grain prices that peaked in May and have since been extremely volatile. A period of elevated price volatility, coupled with an ongoing inverted futures curve, means that grain elevators and merchandisers will require capital discipline and excess liquidity. ************************************************************************************ Upper Midwest Drought Impacting Missouri River Navigation Season The Missouri River Water Management Division will reduce navigation flow support for the second half of the navigation flow support season. Drought conditions continue in the upper Missouri River basin, where river flows are managed by a series of lakes and dams. Downstream, this means reduced flows coming from Gavins Point dam near Yankton, South Dakota, lowering the flow of river navigation channels. Reducing navigation support is a necessary water conservation measure to ensure continued service to all stakeholders for the short- and long-term. The decrease in stage due to the reduced flow support will be less than half a foot. Actual stages will depend on the amount, timing, and location of tributary inflow below Gavins Point dam. Per the July 1 System storage check, and as outlined in the Missouri River Mainstem Reservoir System Master Water Control Manual, the service level to support navigation will be reduced 1,500 cubic feet per second from full-service levels.
| Rural Advocate News | Friday July 2, 2021 |
Washington Insider: Product of USA Labeling The Federal Trade Commission (FTC) voted 3-2 Thursday in favor of a new final rule the agency developed relative to "Made in USA" labels on products. The new rule will become final 30 days after it is published in the Federal Register. The FTC said their final rule "will crack down on marketers who make false, unqualified claims that their products are Made in the USA." FTC said the rule means that marketers making unqualified Made in USA claims on labels "should be able to prove that their products are 'all or virtually all' made in the United States." The FTC said the new rule will also help small businesses that rely on the Made in USA label, but typically do not have the resources to defend themselves from imitators. Under the new rule, the FTC has the ability to seek redress, damages, penalties, and other relief from those who lie about a Made in USA label. It will enable the Commission for the first time to seek civil penalties of up to $43,280 per violation of the rule, according to the agency. "The final rule provides substantial benefits to the public by protecting businesses from losing sales to dishonest competitors and protecting purchasers seeking to purchase American-made goods," said Commissioner Chopra. "More broadly, this long-overdue rule is an important reminder that the Commission must do more to use the authorities explicitly authorized by Congress to protect market participants from fraud and abuse." The issue has taken on attention in ag circles, with USDA Secretary Tom Vilsack releasing a statement praising the FTC move. USDA will complement the FTC's efforts with its own initiative on labeling for products such as beef, and other agricultural products regulated by the Food Safety and Inspection Service, Vilsack said. "I am committed to ensuring that the Product of USA label reflects what a plain understanding of those terms means to U.S. consumers," Vilsack said. "Throughout the rulemaking process, we will be asking questions, collecting data, and requesting comments." So what does USDA plan to do? Vilsack said they will be considering ideas from "the whole range of stakeholders" and that will include feedback from trading partners. Vilsack pledged that USDA will work with trading partners to "ensure that this labeling initiative is implemented in a way that fulfills our commitment to working cooperatively with our trade partners and meeting our international trade obligations." The Product of USA label at USDA is a voluntary effort, one that some in the U.S. cattle industry have focused on since the end of mandatory Country of Origin Labeling (MCOOL) in 2015 after the U.S. lost at case at the WTO. The world trade body authorized Canada to enact more than $1 billion in retaliatory actions over the U.S. MCOOL program, and that retaliatory threat still exists even though the U.S. law has been repealed. But even though the Product of USA labeling effort at USDA is voluntary, it has been met with opposition from the National Cattlemen's Beef Association (NCBA), one of the U.S. groups that fought MCOOL. NCBA has petitioned USDA to end the Product of USA labeling effort. NCBA said they back voluntary labeling efforts that "meet consumer demand and allow producers to distinguish their products in the marketplace." In response to the FTC decision, NCBA President Jerry Bohn said, "The 'Product of the USA' label is not subject to source verification, is not tied to any kind of food safety standard, and is applied by packers and retailers in a manner that does not deliver value back to the cattle producer. This label not only misleads consumers, it is yet another barrier to producers gaining leverage and distinguishing their product in the marketplace." NCBA's Bohn said the group looks forward to working with USDA "to find labeling solutions that represent investments made by producers to continually improve their product and meet consumer demand." As the FTC developed its final rule, NCBA filed comments with the agency that "USDA has primary jurisdiction over all meat food product oversight activities, including the approval and verification of geographic and origin labeling claims." But the key in all this will come in part from USDA pledging to work with U.S. trading partners to make sure Product of USA labeling meets U.S. trade commitments. In other words, USDA will be working closely with Canada and Mexico on the topic as they were the two countries involved in the MCOOL battle at the WTO. Canadian officials have also reminded that any attempt to re-establish MCOOL will bring a swift retaliatory action on their part. No doubt that will be a key situation as this effort moves forward. But by USDA pledging to work on the Product of USA labeling effort, it also means that meat food product labeling will remain at USDA and not somehow shift over to FTC. Finding a workable solution is possible, but the key will be how Canada in particular reacts to whatever the U.S. opts to come up with. So we will see. The trade implications are potentially very important and any resulting labeling effort would likely still have to be voluntary so as to not run afoul of U.S. trade commitments, making this matter that needs to be closely monitored in the weeks and months ahead, Washington Insider believes.
| Rural Advocate News | Friday July 2, 2021 |
US, Taiwan Restart Trade Talks The U.S. and Taiwan restarted dormant trade and investment talks and pledged to keep supply chains free from forced labor, a clear jab at China. China, of course, objects to the negotiations taking place. The trade talks were held via videoconference on Wednesday were the first between the U.S. and Taiwan since 2016. The Office of the U.S. Trade Representative said the U.S. and Taiwan would create a new labor working group to pursue the issue. Taiwanese officials said the discussions were wide-ranging, covering supply chains, intellectual-property protection and financial services, as well as the import and export of vaccines and wild-animal protection. U.S. officials said there are "a lot of things we have to do" before such an agreement can be reached. While the talks do not deal with agriculture, the Trump administration refused to hold additional negotiations without assurances from Taiwan on ag trade issues.
| Rural Advocate News | Friday July 2, 2021 |
House Appropriators Clear FY 2022 Agriculture Spending Plan The House Appropriations Committee on Wednesday approved the Fiscal Year (FY) 2022 Agriculture appropriations, including amendments that would limit poultry line slaughter speeds and forbid the ownership of farmland by the Chinese government and its subsidiaries. The China amendment was brought by Rep. Dan Newhouse, R-Wash., and includes a provision that would make any land currently owned by China ineligible for farm programs or subsidies. The committee adopted by voice vote an amendment by Rep. Barbara Lee, D-Calif., that would revoke 16 waivers granted during the COVID-19 pandemic to meat and poultry plants to increase line speeds for moving animal carcasses. The overall bill includes $26.6 billion FY 2022 Agriculture spending, a 12% increase in discretionary funding from the enacted FY 2021 level. The bill would provide a $2.9 billion increase in discretionary funds for USDA, Food and Drug Administration and Commodity Futures Trading Commission. The plan also provides $5 million for the Food and Drug Administration to create a pilot program in India and China for unannounced inspections of drug manufacturers. Foreign plants are usually given three months prior notice before an inspection. Full House action is expected but the Senate has yet to move forward on its version of the agriculture spending plan.
| Rural Advocate News | Friday July 2, 2021 |
Friday Watch List Markets The U.S. Labor Department will release its reports on nonfarm payrolls and U.S. unemployment for June at 7:30 a.m. CDT Friday, the same time the Census Bureau releases the U.S. trade deficit for May. Later Friday morning, USDA will provide more specific details about ag exports in May, based on Census Bureau data. Grain traders will continue to keep a close watch on the latest weather forecasts and any export news ahead of the three-day weekend. Weather Dry conditions will cover northern and central crop areas Friday. Rain will focus in a swath from the Texas Panhandle to the Southeast with mostly light amounts. Temperatures will be very warm to hot. More extreme heat bulletins are in effect in the Northern Plains and interior Northwest. This pattern is indicated to remain through the holiday weekend.
| Rural Advocate News | Thursday July 1, 2021 |
USDA Acreage Report Shows Slightly Higher Corn and Soybean Plantings The Department of Agriculture's National Agricultural Statistics Service estimates 92.7 million acres of corn planted in the United States for 2021, up two percent from last year. The June 30 Acreage report also estimates soybean area planted at 87.6 million acres, up five percent from last year. Growers expect to harvest 84.5 million acres of corn for grain, up two percent from last year, and 93 percent of corn acres planted in the United States are biotech varieties, up one percentage point from last year. Producers planted 95 percent of the soybean acreage using herbicide-resistant seed varieties, one percentage point higher than in 2020. All wheat planted area for 2021 is estimated at 46.7 million acres, up five percent from last year. This represents the fourth-lowest all wheat planted area on record since records began in 1919. All cotton planted area for 2021 is estimated at 11.7 million acres, three percent below last year. ************************************************************************************ Grain Stocks Down Sharply in USDA Report The Department of Agriculture's quarterly Grain Stocks report, released with the June 30 Acreage report, shows sharp declines in corn and soybean stocks. Corn stocks totaled 4.11 billion bushels, down 18 percent from the same time last year. On-farm corn stocks were down 39 percent from a year ago, but off-farm stocks were up 11 percent. Soybeans stored totaled 767 million bushels, down 44 percent from last year. On-farm soybean stocks were down 65 percent, while off-farm stocks were down 27 percent. All wheat stored totaled 844 million bushels, down 18 percent from a year ago. On-farm all wheat stocks were down 38 percent, while off-farm stocks were down 12 percent. Durum wheat stored totaled 27.5 million bushels, down 34 percent from last year. On-farm stocks were down 24 percent, while off-farm stocks were down 42 percent. The Grain Stocks and Acreage reports sent corn, soybean and wheat markets sharply higher, hitting price limits on Wednesday. *********************************************************************************** Former Ag Secretary Perdue 2017 Real Estate Transaction Drawing Attention A report from the Washington Post questions a real estate transaction made by Sonny Perdue just after his selection to be Agriculture Secretary in 2017. The Washington Post reports Purdue's now-former company bought a small grain facility in South Carolina for $250,000, while ADM purchased the facility six years prior for $5.5 million. However, the county the facility is located in appraised the property at $530,000 in 2018. AN ADM spokesperson told the Post, “This was nothing more than a business decision to sell a significantly underperforming asset.” Both a representative of Perdue’s former company and ADM confirmed the negotiations for the transaction started in 2015, when ADM originally asked for $4 million for the property. Senate Agriculture Committee Chair Debbie Stabenow called the findings distributing. Responding to the report, she states, “I’ve already called on the Office of Government Ethics to review this situation, and believe that they should expedite their efforts.” ************************************************************************************ OCM Applauds Introduction of Opportunities for Fairness in Farming Act House lawmakers Wednesday introduced the Opportunities for Fairness in Farming Act to reform and bring accountability and transparency to Commodity Checkoff Programs. Applauded by the Organization for Competitive Markets, the organization claims checkoff programs “have long been plagued by scandal after scandal for misappropriation of funds, lack of transparency, and misusing farmer and rancher tax dollars against the best interests of the producers.” Representative Dina Titus, a Democrat from Nevada, and Nancy Mace, a Republican from South Carolina, introduced the legislation. Mace states, “This program has devolved from producing ‘Got milk?’ ads to creating taxpayer-funded lobbying firms, and it needs to stop.” The bill would amend the authorizing checkoff laws to ensure the programs cannot contract with organizations that engage in lobbying, conflicts of interest, or anti-competitive activities that harm other commodities. It would also require that they publish all budgets for public inspection and submit to periodic audits by the USDA Inspector General. ************************************************************************************ USDA Seeks New Partnerships to Safeguard, Restore Wetland Ecosystems The Department of Agriculture is investing up to $17 million for conservation partners to help protect and restore critical wetlands on agricultural lands. Through the Wetland Reserve Enhancement Partnership, USDA’s Natural Resources Conservation Service announced Wednesday it is prioritizing proposals that focus on assisting historically underserved producers conserving wetlands. USDA says restored wetlands help to improve water quality downstream, enhance wildlife habitat, reduce impacts from flooding and provide recreational benefits. NRCS Chief Terry Cosby states, “Our goal is to support agricultural producers in their efforts to conserve natural resources on their land.” The program enables effective integration of wetland restoration on working agricultural landscapes, providing benefits to farmers and ranchers who enroll in the program and to the communities where the wetlands exist. The funding is for fiscal year 2022, which begins on October 1, 2021. Partners interested in applying should contact their NRCS state office for more information. Proposals are due by August 15, 2021. ************************************************************************************ NIFA Invests Over $5.4M in Biobased Products Research The Department of Agriculture Wednesday announced $5.4 million in bioprocessing, bioengineering, biofuels and biobased products research investments through the National Institute of Food and Agriculture. NIFA recently awarded $4.8 million for 12 Bioprocessing and Bioengineering grants under NIFA’s Agriculture and Food Research Initiative, and more than $600,000 for six Biofuels and Biobased Products grants under NIFA’s Small Business Innovation Research program. NIFA =director Dr. Carrie Castille states, "NIFA’s Bioprocessing and Bioengineering awards fund projects that will stimulate new trade opportunities for the U.S. bioeconomy.” For example, the University of Idaho received nearly $330,000 for a project to develop an environmentally friendly approach for wood protection. Other projects include exploring the use of pennycress, a non-edible oil, in developing biodegradable plastic, and a bio-based extended-release insect repellent. The next Phase 1 request for Small Business Innovation Research applications is scheduled to open in July 2021, with an October 2021 deadline. Learn more online at www.nifa.usda.gov.
| Rural Advocate News | Thursday July 1, 2021 |
Washington Insider: Still Waiting on More Dairy Aid The dairy sector and lawmakers representing key dairy states have been pushing for more financial help for dairy producers in the wake of the COVID pandemic. Dairy producers and others have complained that they did not see as much benefit from the pandemic aid efforts like the Coronavirus Food Assistance Program 2 (CFAP 2) which paid out more than $1.2 billion to dairy producers and the CFAP 1 effort saw payments of $1.8 billion. Plus, the dairy sector saw a big rise in prices via the Farmers to Families Food Box Program. That effort surprised markets and sent Class I milk prices shooting higher as the industry grappled with the sudden rise in demand from the government effort that resulted in fresh dairy products being sent out to recipients. But the Food Box Program has since ended, with USDA pledging to put the “best of” from the Food Box effort into other established food and nutrition efforts. And they have announced help will be available to set up storage for fresh products that could be included in those food and nutrition efforts. USDA on June 15 acknowledged that not all sectors or producers had shared in pandemic aid equally, as a portion of the aid announced was aimed at “filling gaps in previous rounds of assistance and helping beginning, socially disadvantaged and small and medium sized producers that need support most.” USDA said the efforts it announced that day would be coming over the next 60 days. And dairy figured into that mix. USDA in April announced it would be moving ahead with a new Dairy Donation Program (DDP), an effort to “address food insecurity and mitigate food waste and loss.” The June 15 announcement from USDA said that $400 million would be earmarked for that effort. But the program is not yet ready to roll. USDA only on June 9 sent the DDP proposed rule to the Office of Management and Budget (OMB) for their review. That review could take up to 90 day, but odds are USDA is expecting that will not be the case. So that effort will likely be fully launched days after OMB finishes their review of the program. USDA also said that there would be $580 million in Supplemental Dairy Margin Coverage (DMC) payments made to small and medium farms. But there too, additional regulations are expected to be needed in order to make those dollars available. And as of June 30, USDA had not sent those regulations over to OMB for their review. As the announcement was made that President Joe Biden and USDA Secretary Tom Vilsack would go to Wisconsin this week, expectations rose for there to be some kind of dairy announcement. With the DDP regs still at OMB and the apparently needed regs to make additional DMC payments yet to go to OMB, odds rose that some other aid effort was going to be announced. That set off a flurry of activity in Washington, with indications that a program of direct payments to dairy producers in the range of $750 million to $1 billion was on tap. As last week wore on, the dollar amount appeared to be the major uncertainty, with all eyes focused on June 29, the day of the Biden/Vilsack Wisconsin visit. The extra payments appeared to be under the scope of what USDA announced June 15 -- “Additional pandemic payments targeted to dairy farmers that have demonstrated losses that have not been covered by previous pandemic assistance.” That was a rather general description which appeared to a description of the direct aid that was being worked on to be announced in Wisconsin. But all that changed late in the week. The White House was sending signals that the Wisconsin trip focused mostly or entirely on infrastructure. Seems the White House was eyeing that as part of their damage control after the dust up that arose after the announcement last week that saw Biden imply that if Congress only sent him the bipartisan infrastructure package, he would veto it. That set the White House scurrying to walk back those remarks and make clear at least from their perspective, or officially, there was no linkage. So when Tuesday rolled around, there was no clear signal of a dairy program that would be announced. And to boot, Vilsack did not even make the trip. So we will see. Clearly there will be more aid flowing to dairy producers, but it may take time for a chunk of those dollars to move and the process for getting the payment effort readied needs to be closely monitored, Washington Insider believes.
| Rural Advocate News | Thursday July 1, 2021 |
USDA Sends Final Rule to OMB On Non-Cattle Imports And BSE USDA has sent forward a final rule to the Office of Management and Budget (OMB) for review that would revise rules for imports of sheep, goats, and other non-cattle ruminants and their products with regard to bovine spongiform encephalopathy (BSE). The rule would remove BSE-related import restrictions on sheep, goats and most of their products and add import restrictions relative to transmissible spongiform encephalopathies (TSEs) for certain wild, zoological or other non-cattle species. The rule would align U.S. import conditions with internationally accepted rules from the World Organization for Animal Health's Terrestrial Animal Health Code. USDA aims to publish the final rule in August.
| Rural Advocate News | Thursday July 1, 2021 |
Three Biofuel-Related Bills Coming Biofuel-backing senators will introduce three pieces of legislation aimed at bolstering the sector, including efforts to expand higher biofuel blends, provide tax incentives for flex fuel vehicles and establish a tax credit higher blends of ethanol. The first effort would appropriate $100 million annually in Fiscal Years (FYs) 2021 through 2030 for efforts to update fueling dispensers and storage tanks for higher biofuel blends, with 75% cost share for new pumps to dispense higher ethanol blends, 50% for higher biodiesel blends, and 40% of the cost to update tanks. Another measure would establish a $200-per-vehicle tax credit for flex-fuel vehicles. The low-carbon fuel tax credit would provide 5 cents per gallon for E15 and 10 cents per gallon for blends over 15% ethanol. There already has been a push by some lawmakers to include biofuel efforts in any infrastructure package, and it would seem these pieces of legislation are being offered potentially with that goal in mind. Sens. Amy Klobuchar, D-Minn., and Joni Ernst, R-Iowa, are co-authors of the first two pieces of legislation with Klobuchar and John Thune, R-S.D., teaming up on the low-carbon fuel tax credit bill.
| Rural Advocate News | Thursday July 1, 2021 |
Thursday Watch List Markets USDA's weekly export sales are due out at 7:30 a.m. CDT, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. ISM's index of U.S. manufacturing is out at 9 a.m., followed by natural gas inventories at 9:30 a.m. Traders will likely still be considering Wednesday's USDA reports and keeping a close watch on the latest weather forecasts. Weather Moderate to heavy rain is in store Thursday from the Ohio Valley to the Texas Panhandle. Flood threat is high. Other primary crop areas will be dry with very warm to hot conditions. Heat bulletins cover much of the northern Plains, interior Northwest and Canadian Prairies.
| Rural Advocate News | Wednesday June 30, 2021 |
July 4th Cookout Cost Stable Compared to Year Ago U.S. consumers will pay just a few cents less for their favorite Independence Day cookout foods compared to last year, including cheeseburgers, pork chops, chicken breasts, homemade potato salad, strawberries and ice cream. The American Farm Bureau Federation reveals the average cost of a summer cookout for ten people remains affordable at $59.50, or less than $6 per person. The cost for the cookout is down 16 cents, less than one percent, from last year, but eight percent higher compared to 2019. The largest year-to-year price increase was for strawberries. Survey results showed two pints of strawberries at $5.30, up 22 percent from last year, due to strong demand and the effects of several weather events, including severe rain, hail and high winds that caused significant setbacks to the harvest early in 2021. AFBF's summer cookout menu consists of cheeseburgers, pork chops, chicken breasts, homemade potato salad, pork & beans, strawberries, potato chips and fresh-squeezed lemonade with ice cream and chocolate chip cookies for dessert. ************************************************************************************ NPPC Urges Administration to Appeal Line Speed Court Ruling Before Deadline A federal district court ruling striking down faster harvest facility inspection speeds takes effect today (Wednesday, June 30). The Biden administration has until the end of August to file an appeal, as requested by the National Pork Producers Council. NPPC says the ruling will quickly lead to increased pork industry concentration and packer market power, and seeks waivers for the impacted plants until a longer-term solution, acceptable to all industry stakeholders, is achieved. Iowa State University Research shows the ruling eliminates 2.5 percent of pork packing plant capacity nationwide and will result in $80 million in reduced income for small U.S. hog farmers this year alone. NPPC President Jen Sorenson states, “NPPC continues to urge the administration to appeal before the ruling inflicts irreversible damage to small hog farmers and seismic changes to our entire sector.” Last week, more than 70 lawmakers sent letters asking Agriculture Secretary Vilsack and Acting Solicitor General Prelogar to appeal the court decision. *********************************************************************************** Over 1,000 Counties Approved for Emergency Haying and Grazing on CRP Acres More than 1,000 counties are eligible for emergency Conservation Reserve Program haying and grazing. An American Farm Bureau Federation Market Intel analysis shows the most recently published list of counties with permitted haying and grazing on CRP land includes 1,021 counties, or 32 percent of counties. Primarily located in the West, 860 of those counties have been designated in 2021. In June alone, emergency haying and grazing on CRP acres was authorized in 196 counties. Between June 17 and June 24, 39 counties were added to the designation list, an increase of four percent in one week. Every week, USDA updates the map of counties eligible for emergency haying and/or grazing based on the U.S. Drought Monitor. Counties are approved for emergency haying and grazing when they are designated as level “D2 Drought - Severe” according to the U.S. Drought Monitor. The latest report shows 35 percent of the U.S. in D2 or worse drought, with 61 percent of the continental U.S. in some form of drought. ************************************************************************************ Strong Demand and Competitive Bidding Pushes Land Prices Higher Interest in purchasing agricultural land has grown since a coronavirus pandemic-induced slowdown blanketed the land market last spring. Farmers are feeling more financially secure as strong commodity prices arrived on top of large government payments in 2020. This is propelling farmers to bid more aggressively for additional land than has been the case during the past six years, according to Farmers National Company. Individual investors, both first-time, and experienced buyers, are stepping into the land market as they search for a safe, long-term real estate investment in a low interest rate environment. The increase in ag land prices is happening in most areas of the Grain Belt and with most types of land. Higher land values will bring more sellers into the market as estates, trusts, recent inheritors, and family groups evaluate whether to sell the farm or ranch and capture the higher prices. An additional consideration is the uncertainty surrounding future tax policies, which may trigger a sale sooner rather than later for some. ************************************************************************************ AVMA supports legislation to strengthen dog importation requirements The American Veterinary Medical Association Tuesday reaffirmed its support for the Healthy Dog Importation Act. The legislation is designed to reduce the spread of diseases that could be dangerous to human and animal health. The bill provides the Department of Agriculture with additional resources to monitor and safeguard the health of dogs brought into the United States. The goal is to ensure imported dogs are in good health and not a risk to spread disease. Representatives Kurt Schrader, an Oregon Democrat, and Dusty Johnson, a South Dakota Republican, Co-chairs of the Veterinary Medicine Caucus, reintroduced the legislation. The bill would require every imported dog to have a certificate of veterinary inspection from a licensed veterinarian confirming the dog is healthy and has received all vaccinations and passed all tests required by the USDA. More than one million dogs are imported into the U.S. each year, but less than one percent of these dogs are inspected for diseases. ************************************************************************************ Next COVID Casualty Could be Coffee COVID-19 shockwaves could create a round of trouble for the coffee industry, according to Purdue University. Starting in the 2011-12 growing season, a powdery orange fungus called coffee leaf rust spread throughout Latin America and Central America, damaging crops on 70 percent of farms and causing more than $3.2 billion in damage. Coffee crop management programs helped growers mitigate the fungus. Now, the COVID-19 pandemic caused reduced management, and closed borders, limiting or eliminating movement of migrant workers essential for coffee harvests in Latin America and Central America. Without crops being harvested, profits fall further, and the feedback loop intensifies. Without efforts to eradicate coffee leaf rust, global coffee supplies could dwindle, making a cup of coffee more costly. Researchers suggest a number of measures that could help with rust issues, including sourcing coffee from more areas, including those not as severely impacted by the fungus and diversifying farms and livelihoods of coffee farmers.
| Rural Advocate News | Wednesday June 30, 2021 |
Washington Insider: Trade Promotion Authority to Expire July 1 will bring about the expiration of a trade policy tool used by several administrations for decades -- Trade Promotion Authority (TPA) which used to be known as "fast-track" trade authority. So far, the Biden administration had not submitted legislation to Congress to reauthorize TPA. President Joe Biden should be familiar with the current version of TPA because it was approved by Congress and signed into law in June 2015 by President Barack Obama. So what does TPA do? It allows an administration to negotiate a trade deal with a foreign country or countries, and bring the implementing legislation for the deal to the U.S. Congress for their approval via an up-or-down vote with no amendments possible. The reasoning is that no country would likely want to enter into a trade deal with the U.S. if the 435 members of the House of Representatives and 100 members of the Senate could change the deal. To be covered by TPA, the trade deal has to be negotiated during the time period for which TPA is in effect and it has to advance U.S. trade negotiating objectives that are spelled out in the TPA legislation. Originally, the current version of TPA was only effective until July 1, 2018, but could be extended through July 1, 2021 if the president asked for an extension. President Donald Trump did that March 20, 2018. To have prevented the extension, Congress would have had to clear a disapproval resolution within 60 days of July 1, 2018. They did not. The roots of "fast track" go back to the Trade Act of 1974. The term Trade Promotion Authority was adopted in the Bipartisan Trade Promotion Authority Act of 2002. It was first used to enact the Tokyo Round Agreements Act of 1979 which implemented the 1974-1979 multilateral trade liberalization agreement that were reached during the Tokyo Round of the General Agreement on Tariffs and Trade (GATT). That trade body was the forerunner to the current World Trade Organization (WTO). TPA has been renewed four times -- 1979, 1988, 2002 and 2015. In 1993 -- a short-term extension was approved by Congress to allow the completion of the GATT Uruguay Round of trade negotiations. According to the Congressional Research Service (CRS), TPA has been used for 14 bilateral/regional free trade agreements (FTAs) and one additional set of multilateral trade liberalization agreements under GATT. One FTA was approved by Congress without TPA -- The U.S.-Jordan FTA. That deal was viewed as noncontroversial and only covered a small amount of U.S. trade. In the current version of TPA, there are trade objectives spelled out that Congress included that they insist an administration follow if they want the trade deal to be implemented using the TPA rules. There are three categories of trade objectives in the current TPA, including (1) overall objectives; (2) principal objectives; and (3) capacity building and other priorities. There are separate negotiating objectives for agriculture, 21 in total. The current version had three objectives added to the 18 that previously were a part of TPA. The three new ones covered trade relative to sanitary and phytosanitary measures, that trade negotiators had to make sure on transparency of tariff-rate quotas so they did not impede trade, and the third seeks to eliminate and prevent the improper use of geographical indicators, according to CRS. As for the Biden administration, only USDA Secretary Tom Vilsack has indicated that TPA is needed. U.S. Trade Representative Katherine Tai, when pressed by House Ways and Means Ranking Member Kevin Brady, R-Texas, about whether the administration would be seeking a renewal of TPA, would only say Tai would only say that the administration wants to win bipartisan support for renewal and wants to rethink the objectives of trade agreements before seeking the authority. The potential impacts if TPA is allowed to lapse would be on the UK and Kenya trade deal negotiations that were launched under the Trump administration. The Biden administration has only said it is examining those negotiations before deciding whether to move forward. And, the Biden administration has made clear they are focused on enforcing existing trade deals, not negotiating new ones. So we will see. TPA is a tool that has been used by both parties and letting it lapse has raised even more concerns about the trade focus for the U.S. and the situation needs to be watched closely, Washington Insider believes.
| Rural Advocate News | Wednesday June 30, 2021 |
US-EU Civil Aircraft Dispute 'Solution' Still Reveals Tensions Even as the U.S. and European Union (EU) agreed to a five-year suspension of trade action in the dual civil aircraft dispute involving Airbus and Boeing, the two clashed a bit during a WTO Dispute Settlement Body (DSB) session June 28 in Geneva. The U.S. challenged the EU to provide status reports in the matter after the EU requested a status update on a separate trade issue. The U.S. said the EU was being contradictory in asking the U.S. for a status update over U.S. antidumping and countervailing duty transfers to the domestic industry under the Continued Dumping and Subsidy Offset Act of 2000. The EU countered it is only required to provide status updates at certain stages in the dispute settlement process and the portion of the dispute related to Airbus was still pending appeal and therefore, they were not required to provide a status update. This shows that even the "agreement" reached between the two sides, there is still a ways to go before the situation is totally resolved.
| Rural Advocate News | Wednesday June 30, 2021 |
Potato Growers Push Biden Administration On Mexico Access The National Potato Council (NPC) is calling on the Biden administration to keep pushing Mexico in the dispute over their potato import actions. While a recent Mexican Supreme Court ruling was "significant progress" in the dispute, the NPC said, "there are serious concerns about the long-term prospects for successful market access for U.S. potatoes in Mexico." NPC contends that Mexico's potato cartel CONPAPA is "exerting great political pressure" to impede competition from the U.S. They noted Mexico's SENASICA in April changed the U.S. fresh potato import protocol without notification to the U.S. and involves additional sampling of U.S. potatoes to be sent to a lab selected and paid for by CONPAPA. "The clear goal of this unilateral change is to manufacture a reason to close the market to U.S. fresh potatoes at some point in the future," NPC said in the letter to USDA Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai. Vilsack is currently scheduled to meet with Mexican Agriculture Secretary Victor Villalobos Arambula in early August where issues on GMO corn, glyphosate and the potato trade situation are expected to be key topics
| Rural Advocate News | Wednesday June 30, 2021 |
Wednesday Watch List Markets The private firm, ADP, reports on U.S. private sector job growth Wednesday at 7:15 a.m. CDT, an early hint of Friday's June unemployment report. The U.S. Department of Energy releases its weekly energy inventories at 9:30 a.m., followed by USDA's Acreage and June 1 Grain Stocks reports at 11 a.m. CDT. Grain traders will give USDA's reports plenty of attention, but will also be keeping an eye on the latest weather forecasts. Weather More showers are expected along a frontal boundary that is starting to shift around the Plains and Midwest Wednesday. The pivot point of this front around Missouri, which has seen flooding rains since the weekend, will have the best chance for seeing flooding today. More scattered showers are expected south and east of the front as well, which may continue to delay winter wheat harvest. Dryness north of the front will stress developing row crops in the Northern Plains while heat continues to bake the Pacific Northwest and Canadian Prairies.
| Rural Advocate News | Tuesday June 29, 2021 |
Supreme Court Rejects Petition Against California Prop 12 The U.S. Supreme Court Monday denied a petition to review California’s Proposition 12. The denial was included in a batch of announcements by the Supreme Court. Earlier this month, the North American Meat Institute supported its petition, stating the law “provides no benefit to consumers and increases breeding sow mortality.” The Meat Institute file the petition in February, challenging the constitutionality of California’s Proposition 12: The Farm Animal Confinement Initiative. In March, 20 state attorneys general filed a brief with the Supreme Court supporting the petition. The California law establishes minimum space requirements based on square feet for calves raised for veal, breeding pigs, and egg-laying hens and bans the sale of animals confined to areas below minimum square-feet requirements. The primary issue raised by NAMI and states is that the law extends to producers located outside of California, imposing "crushing burdens on out-of-state farmers and producers who have no political voice to shape the regulations.” *********************************************************************************** USDA Amends the National List for Organic Livestock And Handling The Department of Agriculture announced changes to the National List of Allowed and Prohibited Substances in organic livestock production. USDA’s Agriculture Marketing Service is finalizing three amendments to the National List. Published in the Federal Register Friday, the final rule provides additional options for organic farms and businesses, by adding three substances to the list of substances allowed for organic production and handling. The final rule allows oxalic (ok-sal-ik) acid as a pesticide for use in beekeeping, nonorganic pullulan (pull-you-lan) for use in dietary supplements with "made with organic" claims regarding capsules and tablets, and collagen gel as a casing for organic products like sausages. Once effective, producers and handlers of organic products will be allowed to use these substances in organic production and organic products. USDA says the changes are based on public input and the April 2019 National Organic Standards Board recommendations. The final rule takes effect July 26, 2021. ************************************************************************************ House Republicans Sound Alarm on Plan to Navigable Waters Protection Rule Top Republican leaders in the House of Representatives warn that the Environmental Protection Agency may be returning to the Obama-era Waters of the United States definition. In a letter to EPA Administrator Michael Regan announced Friday, the members outlined their concerns regarding the intention to rewrite the Navigable Waters Protection Rule. The Members wrote, “With all the other crises confronting our nation it makes little sense to unravel a final rule that has taken decades of Agency action, litigation, and legislation to settle.” They urged the EPA and Army Corps not to ignore the input of the general public, small businesses, Federal and state agencies, and the rest of the regulated community to create another rule that provides less regulatory certainty for the involved stakeholders. Representatives David Rouzer, Glenn GT Thompson, Kevin McCarthy, Sam Graves and Cathy McMorris Rodgers, along with Bruce Westerman and Blaine Luetkemeyer and others, signed the letter. *********************************************************************************** China Plans Pork Purchases for State Reserves Chinese officials announced Monday a plan to buy pork for state reserves to support prices, which rebounded sharply after reaching a two-year low recently. Hog prices in China, the world's top pork-producing nation, plunged 65 percent in the first half of 2021 as disease outbreaks triggered panic selling, according to Reuters. China reports average weekly prices entered an “excessive decline” last week. However, China does not disclose how much pork is in state reserves or how much new purchases will total. A Rabobank analyst told Reuters, "Since the frozen pork inventory is probably already high due to strong imports in the previous months, I don't think they'll buy too much." China last made pork purchases in February and March of 2019, totaling 200,000 metric tons. So far in 2021, China has imported nearly two million metric tons of pork, up 13.7 percent. The purchases followed a record 4.4 million metric tons last year. ************************************************************************************ New Beef Processing Facility Announced in Iowa Cattlemen’s Heritage plans to build a $325 million beef processing plant in southwest Iowa. The facility will employ 750 people with a target to begin operations in late 2023, according to the Des Moines Register. Cattlemen’s Heritage, a newly formed company, plans to build the facility near Council Bluffs to process 400,000 head of cattle annually. Investor Chad Tentinger told the newspaper weak cattle prices, strong consumer demand, and available investment capital that had been sidelined during the COVID-19 pandemic helped drive the decision to build the facility. The facility expects to process cattle from Iowa, Nebraska, and South Dakota. The facility helps address the issue of cattle processing capacity in the United States, a hot topic in agriculture today. The four largest meatpackers in the United States process roughly 85 percent of the nation's beef supply. Disruptions in beef cattle markets started in 2019 when a fire halted beef processing at a Tyson Foods facility in Holcomb, Kansas. ************************************************************************************ Gas Prices Resume Increase After declining last week, the nation’s average gas prices have begun to climb again, rising 2.5 cents per gallon from a week ago to $3.09, according to GasBuddy. The national average now stands 4.7 cents higher than a month ago and 92.1 cents higher than a year ago. The national average price of diesel has risen 2.3 cents in the last week and stands at $3.24 per gallon. Gas Buddy’s Patrick De Haan states, “As we approach July 4, it appears the only way forward is for gas prices to continue to rise as Americans’ demand for gasoline continues to act as a catalyst.” Crude oil inventories saw another plunge last week, falling 7.6 million barrels and now stand six percent under the average for this time of year. Gasoline inventories also dipped, dropping 2.9 million barrels. U.S. gasoline demand fell slightly after reaching new records for consecutive weeks. Nationally, weekly gasoline demand fell 2.1 percent.
| Rural Advocate News | Tuesday June 29, 2021 |
Washington Insider: China Firms Scale Back Investment in US Each year, the China General Chamber of Commerce-USA releases a survey of Chinese businesses that operate in the U.S., and this year it showed a decline in their level of investment in the U.S. About 39% of Chinese companies saw their investment in the U.S. drop so far in 2021, compared with 17% last year, the survey said. It was taken in March and April with a sampling of 183 respondents. Only 12% of the Chinese businesses increased their investment, Bloomberg reported, down from 23% in 2020 and 39% in 2018. The figures from 2018 are notable as that was just ahead of the Trump trade war launched against China in the form of tariffs, etc. Of course, COVID factored into the situation. "Respondents suggested revenue and profitability suffered in 2020 due to a tougher business environment in the U.S., primarily related to COVID-19," the report said. "The pandemic's impact was negative for most but varied by sector. Expectations on when revenue and profitability will return to pre-pandemic levels vary by sector, as well, but generally, Chinese companies surveyed are somewhat more positive on the near-term economic outlook than they were last year." But there were other themes running through the data. The Biden administration has not greatly altered the U.S. policy toward China, and in some respects, it perhaps has been tightened compared with the actions from the Trump administration. And Chinese companies operating in the U.S. have felt these impacts as the report said that 79% said the investment and business environments have worsened, the highest level since at least 2018. One year ago, that level stood at just 55%. "Chinese companies indicated they continue to adapt to changing U.S. government policies and enforcement priorities at the federal and state levels," the report stated. "After several years of enhancing employee training and working with third-party organizations, Chinese companies reported they are also prioritizing strengthening their compliance systems and procedures to navigate what is perceived to be a complex legal and regulatory environment in the U.S." Even though there was still a level of optimism with Chinese companies operating in the U.S., the report said that only 43% expected higher revenues over the next two years, down from 57% in 2020 and 63% in 2019. Almost 20% of those surveyed predicted lower sales. And that outlook has fallen since 2015. In 2015, over 60% viewed the environment positively in the U.S. positively and only 4% held a negative view. "This year, only about a quarter (27%) held positive views, whereas 40% held negative views," the report said. And they noted things are perhaps a little less certain in terms of U.S. rules and regulations, an interesting observation given the rapid-fire changes in U.S. policy toward China that took place during the Trump administration. "This year, the top compliance challenges faced by surveyed Chinese companies shifted from lack of knowledge on relevant laws and regulations to navigating perceived complicated laws and regulations and potential conflicts between U.S. and Chinese laws and regulations," the report said. The survey showed lessening levels negative effects of U.S. government policies or positions, with 73% citing tightening work visa authorizations or immigration policies. That level stood at 76% in 2020. High tariffs on Chinese products were cited by 59% in 2021 while that stood at 73% in 2020. Two new options were added for companies, including general economic and trade sanctions where 58% said that was a factor, with 35% citing export controls and 28% cited the Holding Foreign Companies Accountable Act. Bloomberg pointed out that the Biden administration has been "adding more Chinese firms to blacklists, sending more warships through the Taiwan Strait, barring solar imports from Xinjiang and pressing Beijing on Hong Kong and new investigations into the origin of the COVID-19 pandemic." But despite those actions, 65% of those surveyed said the year-over-year challenges in conducting business in the U.S. reflected "complex China-U.S. relations." By contrast, that was labeled as a challenge by 74% in 2020 and 75% in 2019. So we will see. It's interesting that even though little has changed in terms of U.S. policy toward China and some areas have been more restricted, Chinese businesses remain optimistic. Still, this is an area that needs to be watched closely as the China-U.S. relationship unfolds, Washington Insider believes.
| Rural Advocate News | Tuesday June 29, 2021 |
USDA Raises Food Price Inflation Outlook Consumer food costs are increasing and USDA has raised its forecast for overall food price inflation and its outlook for food at home (grocery store) and food away from home (restaurant) prices. Overall food price inflation is now seen at 2.5% to 3.5% in 2021, up from their month-ago outlook that food price inflation would be 2% to 3%. Grocery store prices are now seen rising 2% to 3% in 2021 compared with their month-ago outlook that grocery store price would rise 1.5% to 2.5%. Restaurant prices are now seen up 3% to 4% from 2020 levels, an increase from the prior outlook that they would increase 2.5% to 3.5%. The updated forecasts also mean that prices are seen rising for all three categories by more than their 20-year average. Those averages are 2.4% for all food prices, 2.8% for restaurant prices, and 2% for grocery store prices. However, it is important to note that leading up to 2020 and now 2021, consumers saw grocery store prices either increasing at less than the 20-year average or decreasing over the 2015 to 2019.
| Rural Advocate News | Tuesday June 29, 2021 |
Republicans Note Concerns Over WOTUS Redo House Republicans sent a letter to EPA Administrator Michael Regan and acting Assistant Secretary of the Army for Civil Works Jaime Pinkham outlining concerns with the administration's intention to undo the Trump administration's Navigable Waters Protection Rule. The EPA on June 9 said it and the U.S. Army Corps of Engineers plan to launch rulemakings to restore the pre-2015 definition of the waters of the United States (WOTUS) under the Clean Water Act. "We are concerned that the approach the Agencies intend to take in re-vising this important regulation will regress from the clarity provided by the Navigable Waters Protection Rule and will reimpose a vastly overbroad interpretation of federal jurisdiction over waters around the Nation," the lawmakers said.
| Rural Advocate News | Tuesday June 29, 2021 |
Tuesday Watch List Markets Trading in grains is apt to be quiet ahead of Wednesday's USDA reports. A report on consumer confidence is the only thing on Tuesday's docket, set for 9 a.m. Traders will continue to watch over the latest weather forecasts and any news of export sales. Any news of change in biofuels policy has also put traders on edge lately. Weather The front that has remained stationary from West Texas to Lower Michigan over the past couple of days continues on Tuesday, producing showers along the front that could result in flooding. Behind the front, scattered showers are expected except in the Northern Plains, where conditions are becoming drier, a trend that will continue for the rest of the week as the front pushes southeast.
| Rural Advocate News | Monday June 28, 2021 |
Supreme Court Delivers Blow to Ethanol Industry A Supreme Court ruling Friday left the biofuels industry disappointed. The Supreme Court overturned a 2020 appellate court ruling that struck down three small refinery exemptions granted by previous Environmental Protection Agency administrators. However, because certain elements of the appellate court ruling were left unchallenged and were not reviewed by the Supreme Court, the groups remain optimistic that the Biden administration will discontinue the past administration’s “flagrant abuse” of the refinery exemption program. A coalition, including the Renewable Fuels Association, National Farmers Union, National Corn Growers Association, and the American Coalition for Ethanol, responded, “we will not stop fighting for America’s farmers and renewable fuel producers.” The decision stems from a May 2018 challenge brought against EPA in the U.S. Court of Appeals for the Tenth Circuit by the coalition. The petitioners argued that the small refinery exemptions were granted in direct contradiction to the statutory text and purpose of the RFS. *********************************************************************************** NCBA Welcomes House Processing Capacity Bill Introduction of the Butcher Block Act in the House of Representatives last week received a warm welcome from the National Cattlemen’s Beef Association. The legislation would establish a stand-alone loan program through the Department of Agriculture to help processors expand capacity, improve marketing options for cattle producers and encourage competitive markets and pricing for live cattle. The supply of live cattle and the demand for U.S. beef are both strong, but a lack of processing capacity or "hook space" has stifled producer profitability. The legislation authorizes the Agriculture Secretary to establish a grant program that would support a range of research and training efforts aimed at strengthening the workforce to meet labor needs, and helping processors become federally inspected to increase capacity. NCBA President Jerry Bohn says the legislation “addresses both of those hurdles, and would go a long way to alleviating the bottleneck that is depressing live cattle prices for our farmers and ranchers.” *********************************************************************************** Lawmakers Ask Biden Administration to Help Hog Farmers More than 70 lawmakers late last week asked the Department of Agriculture to stop a recent court order the National Pork Producers Council says will cause harm to hog farmers. Lawmakers made the request in a letter led by Iowa Republican Senator Chuck Grassley and Minnesota Republican Representative Jim Hagedorn. The letters call on the Biden administration to appeal a recent federal district court ruling striking down pork harvest facility line speeds allowed under USDA New Swine Inspection System. NPPC claims the order will lead to pork industry concentration and increased market power for plant operators at the expense of small hog farmers. NPPC President Jen Sorenson states, “While the administration can appeal the court’s decision until the end of August, the damage to U.S. pork producers will be immediate.” Pork Industry Economist Steve Meyer says the order “reduces competition because the impacted plants will process fewer hogs, leaving more pigs available to other packers.” ************************************************************************************ Top House Ag Republican Opposes Growing Climate Solutions Act The top Republican on the House Agriculture Committee opposes the Growing Climate Solutions Act passed by the Senate last week. Representative Glen GT Thompson, a Republican from Pennsylvania, says the bill is a “big-government solution in search of a problem.” The Senate passed the bill last week, with support from many agriculture groups. However, Thompson says, “The consequences of government intrusion into voluntary carbon markets have not been adequately explored and Congress should continue educating itself and vetting these issues before legislating.” However, Senate Agriculture Committee Chair Debbie Stabenow called the bill a “win-win for farmers.” The legislation proposes a certification program at USDA to mitigate technical entry barriers to farmer and forest landowner participation in carbon credit markets. The bill also creates an online resource for farmers looking to connect with experts and establishes an Advisory Council to provide input to USDA and ensure the program remains effective and works for farmers. *********************************************************************************** Ag, Manufacturing Groups, Welcome Infrastructure Framework Progress The White House released the framework of an infrastructure package last week, supported by equipment manufactures and soybean farmers. The $1.2 trillion framework includes $109 billion for roads and bridges, $65 billion for broadband infrastructure and $7.5 billion for electric vehicles infrastructure. The plan to overhaul the country’s transportation, water and broadband infrastructure would invest resources proposed in President Joe Biden’s American Jobs Plan. The American Soybean Association, a long-standing advocate of investments for ports, waterways and road transportation, welcomed the announcement. ASA President Kevin Scott says, “We are thankful to see these issues prioritized and that the plan avoids tax provisions that would negatively impact farmers and their families, such as drastic changes to stepped-up basis.” The Association of Equipment Manufacturers welcomed the details, but stated, “the job is not done.” AEM’s Kip Eideberg says, “Despite what skeptics say, we can and must get this deal all the way across the finish line in a bipartisan manner.” ************************************************************************************ Interagency Agreement to Coordinate Broadband Funding Deployment The Department of Agriculture and other Federal Agencies Friday announced an interagency agreement to coordinate the distribution of broadband deployment funds. USDA, the Federal Communications Commission and the National Telecommunications and Information Administration signed the agreement. Each federal agency partner agrees to share information about existing or planned projects that receive funding from the various federal funding sources. The agreement also requires the federal agency partners to consider basing the distribution of funds from the programs on standardized broadband coverage data. Agriculture Secretary Tom Vilsack says broadband “is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected, adding, “USDA remains committed to being a strong partner with rural communities.” Commerce Secretary Gina Raimondo (Roh-MUN-doh) says the announcement “lays important groundwork for collaboration between agencies to ensure the federal government’s efforts to expand broadband access are as effective and efficient as possible.”
| Rural Advocate News | Monday June 28, 2021 |
Washington Insider: The Supreme Court and Biofuels The U.S. Supreme Court on Friday issued a long-awaited ruling in a case involving biofuels, siding with refiners in the case. The nation's top court ruled in the HollyFrontier Cheyenne Refining vs. Renewable Fuels Association (RFA) that the Tenth Circuit Court of Appeals ruled in error when it invalidated three small refinery exemptions (SREs) for the 2016 compliance year. Those SREs allow small refiners to be excused from their obligations under the Renewable Fuel Standard (RFS) if they can show meeting them would cause "disproportionate harm" to their survivability. The initial RFS included exemptions for these small refiners, those with an output of less than 75,000 barrels per day, through 2011. In the time from 2011 through 2015, typically less than 10 SREs were granted. The level of SREs applied for and granted exploded during the Trump administration, leading to the suit that eventually reached the Tenth Circuit Court of Appeals and finally the U.S. Supreme Court. The Tenth Circuit had invalidated the SREs granted for the 2016 compliance year by the Trump administration, ruling that in order for the refiners to be able to get the SREs for that year the had to have them continuously since 2011. Under the law, it said that the SREs could be extended. But that definition of extended was at the heart of the Tenth Circuit Court ruling. The refiners affected by the decision opted to elevate the matter to the U.S. Supreme Court. The Biden administration in February announced they were now siding with the Tenth Circuit Court in its decision and that was expected to potentially add to the defense of the RFS in the Supreme Court session that heard the case in April. But that definition of "extension" was where the Supreme Court said the Tenth Circuit had erred. The majority opinion in the 6-3 case was written by Justice Neil Gorsuch, who argued that even Congress will "extend" a program via legislation even after that program had lapsed. He also likened it to a study not meeting a deadline to turn in a report on a Friday and the teacher then allowing that student to turn the report in on Monday. The court did note that the term "extension" is not defined in the RFS and that it can mean "an increase in time." The Court said that the Tenth Circuit "erred" when it imposed the definition that the SREs had to have "unbroken continuity." The top court simply stated, "The plain meaning of 'extension' does not require unbroken continuity." Justice Amy Coney Barrett wrote the dissenting opinion and noted that even while the majority opinion sides with HollyFrontier on the definition of "extension," she noted the refiner "does not dispute that when used to refer to 'an increase in the length of time,' the word 'extension' can -- and commonly does -- refer to something that is prolonged without interruption." Just as Gorsuch used a real-world example in the majority opinion, Coney Barrett opted to do the same. "Consider a hotel guest who decides to spend a few more days on vacation. That guest likely would ask to 'extend [her] visit,'" Coney Barrett wrote. "Now suppose the same guest returns to the same hotel three years later and, upon arrival, requests to 'extend' her prior stay. The hotel employee would no doubt 'scratch her head.'" Observers on both sides of this issue believe refiners won in this case. And markets appeared to take the same view. The prices for Renewable Identification Numbers (RINs), the biofuel credits that refiners can purchase to demonstrate compliance with the RFS if they do not blend enough biofuels to gasoline to meet those mandates, fell in the wake of the Court's decision. That alone could lower the costs for refiners to comply with the law. Recall that the suit also focuses on the "disproportionate" harm that these small refiners would face if they complied with the law. Now those compliance costs will be lower and reports indicated that refiners had backed out of the RIN market in recent weeks as they bet the Supreme Court would side with them. This, of course, raises questions on whether the reduced RIN prices now mean those refiners would no longer be facing "disproportionate harm" in complying with the law. And this further muddies the waters over the 50 SREs that are pending for the 2019 and 2020 compliance years, not to mention the 20 that were pending for the 2011-2018 compliance years as refiners sought to hedge their bets and apply for SREs in the prior years just in case the Supreme Court sided against them. Today, biofuel backers will be offering up their views on the Supreme Court ruling. They clearly will not be pleased. So we will see. This adds yet another layer onto what has become a controversial policy and one that is a key for agriculture and must be watched closely given the portion of corn and soybean production that goes to making biofuels, Washington Insider believes.
| Rural Advocate News | Monday June 28, 2021 |
Reuters: Mexico Rejected Three Shipments From Smithfield Plant Before Delisting Mexican inspectors rejected three cargoes of pork skins from the Smithfield plant in Tar Heel, North Carolina, before delisting the plant relative to its ability to ship pork into Mexico June 16, according to a report from Reuters. Rava Forwarding was also delisted by Mexico June 18 and the country's health safety agency Senasica said Rava was the third-party company involved in the situation. Smithfield issued a statement last week after the delisting that issue was not linked to Smithfield or the Tar Heel plant but an unnamed third-party company. Reuters reported that Senasica said it rejected a shipment April 15 from the Tar Heel plan after inspectors observed rotting product covered with "yellowish spots." Two more rejections took place in June, the report said, which may have included a mix of product from both plants. Senasica said the decision to delist the two facilities was based on the "accumulation" of tainted cargoes of refrigerated pork skins. It is not clear how long the delisting will last, but it could take at least a few months, the agency said.
| Rural Advocate News | Monday June 28, 2021 |
House Appropriations Subcommittee Clears FY 2022 USDA/FDA/CFTC Funding The House Appropriations Agriculture Subcommittee approved the Fiscal Year (FY) 2022 spending plan covering USDA, the Food and Drug Administration (FDA) and the Commodity Futures Trading Commission (CFTC). The plan would boost discretionary spending by 1.3% to $26.6 billion compared with $23.4 billion in FY 2021. Total spending in the plan would be at $196.7 billion. Among provisions in the package is an increase for the ReConnect program that is aimed at expanding broadband service in rural communities. The plan would allocate $800 million for the effort, up from $635 million in FY 2021 and above the $700 million requested by the Biden administration. There is another $347.4 million that will go toward USDA programs on climate change. There were not major amendments or changes to the bill at the subcommittee level, but the markup set for June 30 by the House Appropriations Committee could see more activity.
| Rural Advocate News | Monday June 28, 2021 |
Monday Watch List Markets Traders remain glued to the latest weather forecasts and will be checking rainfall amounts from over the weekend. USDA's weekly grain export inspections report is set for 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Corn and soybean crop ratings will reflect the haves and have-nots of the latest rains and traders will also note wheat harvest progress. Weather A zone of scattered showers will continue along a stalled front from Texas through Michigan and may cause flooding on Monday, with scattered showers behind it across the rest of the Plains and Midwest. Regardless of flooding potential, the rains will disrupt the HRW wheat harvest. Additional flooding potential may occur in areas that received lots of rain this weekend in the Midwest, but the showers will be beneficial for developing corn and soybeans.
| Rural Advocate News | Friday June 25, 2021 |
Ag Groups Welcome Senate Passage of GSCA Agriculture groups responded favorably to the Senate passage of the Growing Climate Solutions Act Thursday. American Farm Bureau Federation President Zippy Duvall says, “We appreciate lawmakers putting aside their differences to work on bipartisan solutions to the challenges facing farmers and ranchers.” The legislation is supported by more than 75 agriculture, food, forestry and environmental groups that are part of the Food and Agriculture Climate Alliance. AFBF says the legislation provides clarity and guidance for farmers, ranchers and forest landowners interested in voluntary participation in private carbon credit markets. National Farmers Union President Rob Larew says of the legislation, “It will be no small task to curtail this existential threat – but by leveraging the full potential of every sector, including agriculture, we have the ability to protect our planet.” Farm Credit Council President and CEO Todd Van Hoose calls the bill an “important step” to developing a voluntary, market-based system for carbon markets. *********************************************************************************** Farm Debt Declines Further and Credit Stress Eases Agricultural debt at commercial banks continued to decline in the first quarter of 2021, and farm loan performance improved. The Kansas City Federal Reserve Bank this week released the data that shows both real estate and production loans decreased, reducing farm debt by more than five percent from a year ago. The reduction in agricultural loan balances was less pronounced among banks most concentrated in agriculture, driven by modest growth in real estate debt. Delinquency rates on farm debt dropped notably from a year ago and, alongside strong earnings, profitability at agricultural banks improved from the end of last year. The outlook for agriculture remains strong heading into the summer months. However, increases in production costs and persistent drought in many regions lingered as concerns. And profitability for cattle producers remained narrow. Overall, strength in aggregate conditions and lasting support of government aid and lending programs have continued to limit increases in farm debt and ease agricultural credit stress. *********************************************************************************** Florida Judge Blocks Debt Relief for Minority Farmers A federal judge in Florida this week blocked the Department of Agriculture’s debt relief program for minority farmers. A white farmer in Florida challenged the program, facing farm loans and financial hardship during the pandemic. The farmer claims the debt relief program discriminated against him by race. A District Judge this week blocked the $4 billion program, ruling the farmer had established a “strong likelihood” of the policy violating his right to equal protection under the law, according to Reuters. A separate judge in Wisconsin granted a temporary restraining order on the program earlier this month. USDA is defending the debt relief program, saying USDA employees and programs have discriminated against socially disadvantaged farmers by denying loans and delaying payments. House Agriculture Committee Chairman David Scott, A Black Democrat from Georgia, weighed in on the lawsuits earlier this week. Scott says, "I strongly support and thank Secretary Vilsack for standing up and fighting for this critical, urgent and much-needed legislation.” ************************************************************************************ Experimental Vaccine Protect Cattle from Johne’s Disease Scientists with the Agricultural Research Service Thursday announced a new experimental vaccine to protect cattle from the bacterium that causes Johne’s (yo-knee’s) disease. The disease is a chronic intestinal disorder that can cause diarrhea, weight loss, poor health and sometimes death in cattle. In the United States, Johne’s disease is most prevalent in dairy herds, costing the industry more than $220 million annually. Researchers created a so-called cocktail of four proteins from the bacteria to create the vaccine. Encouraged by test results with mice, the researchers scaled up their efforts to produce the four proteins and combine them into a single vaccine "cocktail" that could be administered to calves. Trials with dairy calves indicate the vaccine did not disappoint, rendering the young animals immune to the disease over the course of a year of monitoring. The researchers note the need for additional efficacy trials and welcome collaboration with an industry partner to further explore the patented vaccine cocktail's commercial potential. *********************************************************************************** USDA to Investing $10 Million to Support Climate-Smart Agriculture and Forestry The Department of Agriculture is providing $10 million to support climate-smart agriculture and forestry through voluntary conservation practices in ten targeted states. Available through the Environmental Quality Incentives Program, the funding will help producers plan and implement voluntary conservation practices that sequester carbon, reduce greenhouse gas emissions, and mitigate climate change. Producers in Arkansas, Florida, Georgia, Michigan, Minnesota, Mississippi, Montana, North Carolina, Pennsylvania and Wisconsin can apply for the funding. Each state will determine its own signup period, with signups expected to begin on or around June 24 in most states. USDA’s Natural Resources Conservation Service, which administers EQIP, selected states based on demand for additional support for climate-smart practices. A USDA official states, “Farmers, ranchers and forest landowners are the best stewards of our lands and waters, and they play a critical role in climate change mitigation,” The pilot will be expanded across all states and programs in fiscal year 2022. ************************************************************************************ Biden Extends Moratorium of Residential Evictions in USDA Multifamily Housing Communities The Centers for Disease Control and Prevention Thursday extended the moratorium on evictions of Americans who live in multifamily housing communities supported by the Department of Agriculture. The extension grants the moratorium through July 31, 2021. USDA Rural Development undersecretary Justin Maxson says the action gives tenants at USDA-supported properties “essential relief while the Department extends the emergency rental assistance provided by the American Rescue Plan Act.” Beyond July 31, 2021, USDA will continue to offer emergency assistance to USDA multifamily housing property owners and tenants who are experiencing financial hardship due to the pandemic. USDA’s Multi-Family Housing Programs provide affordable multifamily rental housing in rural areas by financing projects geared for very-low-income families, the elderly, people with disabilities, and domestic farmworkers. USDA also extends assistance through loan guarantees for affordable rental housing for very-low- to moderate-income residents in rural areas and towns. Additionally, USDA provides grants to organizations to repair or rehabilitate housing for eligible families.
| Rural Advocate News | Friday June 25, 2021 |
Washington Insider: More Pressure on China Over Forced Labor The U.S. Customs and Border Protection (CBP) as issued a Withhold Release Order (WRO) on silica-based products made by Hoshine Silicon Industry based in Xinjiang, China, and its subsidiaries. “This WRO is based on information reasonably indicating that Hoshine used forced labor to manufacture silica-based products,” CBP said. “As a result, personnel at all U.S. ports of entry have been instructed to immediately begin detaining shipments that contain silica-based products made by Hoshine or materials and goods derived from or produced using those silica-based products.” This means that all of those products made by Hoshine will be stopped at the U.S. border and held by CBP. Additionally, the U.S. Department of Commerce (DOC) announced that Hoshine Silicon Industry (Shanshan) Co., Ltd., Xinjiang Daqo New Energy Co., Ltd., Xinjiang East Hope Nonferrous Metals Co., Ltd., Xinjiang GCL New Energy Material Technology Co., Ltd., and the Xinjiang Production and Construction Corps (XPCC) have been added to the U.S. Entity List, saying they were for “accepting or utilizing forced labor in the implementation of the People's Republic of China's campaign of repression against Muslim minority groups in the Xinjiang Uyghur Autonomous Region.” The WRO does not cover all silica products from China, but indications are that CBP could be collecting information that could lead to a broader application of the WRO. They followed that pattern previously relative to cotton and tomatoes and tomato products, originally targeting just the products from the XPCC and later they broadened it to all products from Xinjiang. The South China Morning Post downplayed the potential impact on Hoshine, quoting Peng Peng, general secretary with the China New Energy Investment and Financing Alliance, as saying the U.S. market for Chinese solar panels is not that big. However, she also noted there were few alternatives outside of China for the products -- China produces about 76% of the world's polysilicon, with production bases mainly in Xinjiang, the Inner Mongolia autonomous region, Sichuan province and Yunnan province. "I believe Chinese companies have been preparing for any U.S. sanctions since the trade war began. So, we need to think next about how to counter the U.S. sanctions by swapping the origin of production, by shifting orders within China," she said. Predictably, the reaction within China has been critical of the U.S. actions. Commerce ministry spokesman Gao Feng repeated the Chinese stance that the “so-called forced labor issue” in Xinjiang is “completely contrary to the facts.” Gao also said the U.S. is “again using its state power to practice protectionism and bullying in the name of so-called human rights, which seriously damages the international economic and trade order and poses a serious threat to the security of the global supply chain.” From China's Foreign Ministry, spokesman Zhao Lijian said, China will “make necessary responses to resolutely safeguard its own interests.” The pressure on China is clearly rising from the U.S., but what is of even greater concern for China is if European countries follow suit. That could create even more potential pressure on China and Chinese businesses if they are blocked out of the EU market. Already, some companies in Europe have opted to include provisions in contracts that require proof that no Xinjiang forced-labor cotton is involved in textiles or clothing items. That may be a tough task, but the fact companies are doing so is a clear signal that the issue is not going away. So we will see. If the pressure mounts on China, their warnings of “protecting their interests” could take several forms, including actions against imports of U.S. products, something which needs to be closely watched, Washington Insider believes.
| Rural Advocate News | Friday June 25, 2021 |
No Conclusions From Senate Hearing On Cattle Market The Senate Agriculture Committee explored the issue of U.S. cattle markets and as expected, did not come to any conclusions about what needs to be done to address market conditions. The panel heard testimony from cattlemen and academics who focused on the need for price discovery improvements with some pushing for livestock price reporting requirements to be tweaked to improve market clarity. There was also considerable discussion about processing capacity in the U.S., with lawmakers hearing about the costs involved in setting up new slaughter facilities. This is why Senate Agriculture Chair Debbie Stabenow, D-Mich., will take more time for the industry to reach agreement, something that will take a major effort and time. Expect any plan from Congress to likely come about later rather than sooner given the breadth of issues.
| Rural Advocate News | Friday June 25, 2021 |
Federal Judge Halts Socially Disadvantaged Farmer Debt Relief A Federal judge in Florida has issued a preliminary injunction that halts the implementation of the program to provide debt forgiveness to socially disadvantaged farmers. U.S. District Judge Marcia Morales Howard halted the program, saying it does not do away with racial discrimination. “Congress also must heed its obligation to do away with governmentally imposed discrimination based on race,” Morales Howard said. “It appears that in adopting Section 1005's strict race-based debt relief remedy Congress moved with great speed to address the history of discrimination, but did not move with great care.” The provision referenced by the judge would have USDA's Farm Service Agency (FSA) pay up to 120% of direct and guaranteed loan outstanding balances as of January 1, 2021, for socially disadvantaged farmers and ranchers. However, the judge indicated that USDA could still continue preparations to deliver the debt relief until the program is found “constitutionally permissible.” The program had already been on hold die to a separate restraining order in Wisconsin, but this Florida decision is seen as a nationwide suspension of the program. The suit in Florida was brought by white farmer Scott Wynn who said he had federal farm loans and could not apply for the debt forgiveness as he was white.
| Rural Advocate News | Friday June 25, 2021 |
Friday Watch List Markets A report on U.S. personal incomes and consumer spending for May is due out at 7:30 a.m. CDT, followed by the University of Michigan's consumer sentiment index for June at 9 a.m. Traders will be watching the latest weather forecasts and maps of actual rain amounts. USDA's cattle on feed report for June 1 is due out at 2 p.m. CDT. Weather Heavy rain fell across southern Iowa and northern Missouri on Thursday and that trend looks to continue to spread across the much of the Corn Belt and Plains on Friday. Moderate to heavy rain is expected for many areas, disrupting the wheat harvest but benefiting developing corn and soybeans where flooding does not occur. The Northern Plains will see some showers moving through but amounts will be much lighter, while Minnesota largely stays dry for another day.
| Rural Advocate News | Thursday June 24, 2021 |
R-CALF: Concentration and Globalization Behind Cattle Market Issues As the Senate Agriculture Committee focused on potential cattle market manipulation Wednesday, R-CALF USA says concentration and globalization are the core problems. Separate from the committee hearing, R-CALF submitted comments to USDA this week responding to a request for input on transforming America’s food system. R-CALF, short for The Ranchers Cattlemen Action Legal Fund United Stockgrowers of America, points out four multinational beef packers control 85 percent of the fed cattle market and 80 percent of the boxed beef market. The comments explain, “they have now consolidated their control over both the supply side and demand side.” To address this, R-CALF’s first recommendation for reversing the effects of globalization is to require all beef sold in America to be labeled with a country-of-origin label. Doing so, R-CALF says, consumers can begin making purchasing choices between foreign beef and domestic beef. The comments include nearly 30 separate recommendations to strengthen the domestic cattle and beef supply chains. *********************************************************************************** Republicans Launch Conservative Climate Caucus House Republicans Wednesday launched the Conservative Climate Caucus. The caucus includes more than 50 representatives from every committee with jurisdiction over climate policy and various ranking members. Utah Representative John Curtis chairs the caucus, stating, “We do care about climate – and we already have solutions and plan to find more.” The goal of the Conservative Climate Caucus is to bring members of the Republican party together to educate each other on climate policies that will make progress on reducing emissions through American innovation and resources. In a news release, Curtis says proposals to reduce emissions and be good stewards of the earth do not have to hurt the American economy, adding, “There is a way to lower global emissions without sacrificing American jobs and principles.” A webpage describing the caucus states that with innovative technologies, fossil fuels can and should be a major part of the global solution, adding, “reducing emissions is the goal, not reducing energy choices.” *********************************************************************************** Senators Introduce the Define WOTUS Act Senate Republicans from Iowa, Chuck Grassley and Joni Ernst, and Indiana's Mike Braun introduced the Define WOTUS Act this week. The bill legislatively defines "waters of the United States," and makes a definition of the term permanent. Grassley and Ernst recently sent a letter to Agriculture Secretary Tom Vilsack to express concerns over the Biden administration's decision to roll back the previous administration's Navigable Waters Protection rule. Grassley states, "Adding more federal red tape for home builders during construction or to a farmer's day-to-day decisions on the farm is government overreach." Braun of Indiana says, "Farmers and families need a reasonable, practical definition for WOTUS, and that’s why Congress should do its job and define the law.” The EPA earlier this month announced intent to rewrite the Navigable Waters Protection rule. American Farm Bureau’s Don Parrish said at the time, “this is not a fight about protecting water quality, because the Navigable Waters Protection rule does that, this is a fight over land use.” ************************************************************************************ USDA Invests $185 Million to Improve Rural Community Facilities The Department of Agriculture Wednesday announced funding for rural facilities and essential services in rural America. USDA is investing $185 million to equip, rebuild, and modernize essential services in rural areas of 32 states, benefiting three million rural residents. Specifically, USDA is investing in 233 projects through the Community Facilities Direct Loan and Grant Program. Of these, 74 awards, totaling $4 million, will help communities with their long-term recovery efforts following natural disasters such as hurricanes, floods and tornadoes. USDA Rural Development undersecretary Justin Maxson says, “These loans and grants will help rural communities invest in facilities and services that are vital.” More than 100 types of projects are eligible for Community Facilities funding. Eligible applicants include municipalities, public bodies, nonprofit organizations and federally recognized Native American tribes. Projects must be in rural areas with a population of 20,000 or less. To learn more about Community Facilities Program funding opportunities, contact a USDA Rural Development state office. *********************************************************************************** Britain Begins Talks to Join CPTPP Britain is negotiating to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP. Talks began earlier this week to join the trade deal Britain sees crucial to its post-Brexit pivot away from Europe, according to Reuters. The CPTPP agreement removes 95 percent of tariffs between its members, including Japan, Canada, Mexico and others. While joining the agreement won't significantly increase exports for Britain, it will lock in market access, and increases market influence. Reuters points out Britain will need to demonstrate it can meet the existing members' standards on tariff removal and trade liberalization, and provide clear details on how and when it will do so. The United States left the trade agreement, then known only as the Trans-Pacific Partnership, during the Trump administration. However, during his campaign, President Joe Biden expressed the possibility of renegotiating and rejoining the CPTPP, but has yet to announce any plans to do so. ************************************************************************************ Farmers Union Opposes Longer Mail Delivery Times A proposal to permanently slow down First-Class Mail delivery would be “catastrophic” for family farmers, according to the National Farmers Union. NFU submitted comments this week to the U.S. Postal Service on the proposal. Currently, First-Class mail is supposed to be delivered within a one- to three-day time frame. However, in an effort to cut costs, USPS has proposed extending that range to five days. NFU contends that because rural areas often lack both services like banks, pharmacies, polling places, and supply stores as well as access to broadband internet and private delivery services, residents disproportionately depend on USPS to receive medication, vote, communicate with friends and family, cash checks, and conduct business. NFU says the delay would be particularly detrimental for packages containing time-sensitive materials such as live animals, perishable foods, ballots, and prescription medications. The proposal, according to the NFU filed comments, could put “rural businesses and livelihoods at risk.”
| Rural Advocate News | Thursday June 24, 2021 |
Washington Insider: Supreme Court Decision on Farm Access The U.S. Supreme Court has ruled that a California regulation that allows union organizers to enter ag properties without the employer's consent violated their property rights. The nation's top court issued the decision with a 6-3 vote, the conservative judges voting in the affirmative while the three liberal judges dissented. Cedar Point Nursery and Fowler Packing Company brought the suit against the decades-old California regulation, the California Agricultural Labor Relations Board regulation that has been in place since 1975. That regulation allowed union organizers with notice to the regulators and employer, to enter agricultural premises to talk to workers for three non-working hours per day during four 30-day periods each year. The reg does not require the organizers to get the approval from the employer, only that they have to notify the employer. The court ruled that the regulation is essentially equivalent to the government taking private property for public use without justification, in violation with the Constitution's Fifth Amendment. "The access regulation grants labor organizations a right to invade the growers' property. It therefore constitutes a per se physical taking," Chief Justice John Roberts said in the majority opinion. But those on the minority argued differently, with Justice Stephen Breyer stating that the union activity was only temporary in nature. "The regulation does not appropriate anything. It does not take from the owners a right to invade (whatever that might mean)," Breyer wrote. "Most such temporary-entry regulations do not go 'too far.' And it is impractical to compensate every property owner for any brief use of their land.” The case was elevated to the Supreme Court after the Ninth U.S. Circuit Court of Appeals threw out the challenge brought by the companies after organizers at Cedar's property had disrupted work with bullhorns while Fowler had denied access to the property by union organizers. The Ninth Circuit ruled that the rule did not rise to the level of being an unconstitutional taking because of the temporary nature of the action. The California Supreme Court upheld the rules on a 4-to-3 vote in 1976, and the provisions have gone unchallenged until now. Breyer also said that on remand to lower courts, California at least should have the chance to compensate the growers as that would then allow the union organizers to maintain access. However, the growers want the regulation to end. Those seeking to keep the regulation in place argued that the matter was not a taking and that ending the regulation could allow landowners to bar access to their property by federal food inspectors and potentially others, even law enforcement. But Ilya Somin, a law professor at George Mason University, pointed out in an op-ed item in The Hill that the court ruling “does not mean all government-mandated entry on private property qualifies as a taking. The court lists several exceptions to its general rule, including most 'health and safety' inspections, and enforcement of regulations that bar owners from violating common law rights of others (as by creating a nuisance).” He noted the health and safety inspections are “conditions for the conferral of various government benefits.” But the scope of those exceptions, Simon said, “isn't entirely clear and will likely be a subject of future litigation.” But what the Supreme Court has done is upheld the rights of property owners. And that is something that agricultural property owners have fought to keep intact. Those arguments have prevailed in other cases and now again this time around. So we will see. As Somin points out, there will likely be other challenges ahead, and that means these potential cases in the futures bear watching closely by agriculture, Washington Insider believes.
| Rural Advocate News | Thursday June 24, 2021 |
Biofuel Supporters Keep on Message in Senate Hearing A Senate Agriculture subcommittee Tuesday examined issues on renewable energy and the U.S. rural economy, with the panel hearing a consistent message from supporters of biofuels -- using biofuels can contribute to the Biden administration's goal of net-zero emissions by 2050. Emily Skor of Growth Energy stressed that accurate modeling on ethanol's lifecycle greenhouse gas (GHG) emissions was a key need so that the fuel gets proper credit for its benefits over straight gasoline. “Important for us is that you have a modeling that reflects the most current science and reflects all of the innovation that's taking place, not only at the plant, but also on the field,” she stated. She also said that a low carbon fuel standard (LCFS) is something the ethanol industry supports, but said it has to be technology neutral and be science-based. As for refiner contentions that compliance costs relative to their Renewable Fuel Standard (RFS) obligations have risen so high that their survivability is in question, Skor said, “There is no correlation to the price of complying with the RFS and refinery profits. This is something that has been affirmed by many experts, including the EPA several times.”
| Rural Advocate News | Thursday June 24, 2021 |
Biden, Vilsack Going To Wisconsin Next Week President Joe Biden and USDA Secretary Tom Vilsack will be in Wisconsin on Tuesday June 29 to discuss agriculture and rural economies, according to the White House. Dairy is likely to figure high on the list of issues that will be focused on with the administration having announced additional aid will be coming to the sector over the next 60 days. But there has been little detail on the aid plans as of yet. However, the expectation is that as Biden and Vilsack visit the nation's key dairy state, there will be some kind of policy announcement forthcoming as Wisconsin is viewed as a potential battleground state in the 2022 midterm elections.
| Rural Advocate News | Thursday June 24, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday, the same time as weekly U.S. jobless claims, an update of first quarter U.S. GDP and an update of the U.S. Drought Monitor. The U.S. Energy Department's weekly natural gas inventory report is set for 9:30 a.m. CDT. Traders remain closely tied to the latest weather forecasts. Weather A complex of moderate rain was situated from Iowa through eastern Kansas early Thursday morning. This cluster should diminish this morning as it continues east, but more rain is on the way for the Plains and western Midwest Thursday as a system develops along a cold front. Some of these storms could be severe across the Kansas-Nebraska border region east and northeast into Wisconsin and Illinois.
| Rural Advocate News | Wednesday June 23, 2021 |
Senators Want Reasons for Replacing the Navigable Waters Protection Rule West Virginia Republican Senator Shelly Moore Capito (CAP-ih-toe) and several Republican colleagues want to know why the Biden EPA decided to replace the Navigable Waters Protection Rule. Capito, the Ranking Member of the Senate Environment and Public Works Committee, says, “After the administration’s continued commitments to transparency, engagement, and communication with stakeholders and Congress on this issue, the lack of transparency surrounding the decision to abandon this legally defensible and environmentally sound rule is disheartening.” The Republican Senators point out that on a briefing call after announcing the decision to replace the rule, the Environmental Protection Agency and the Corps of Engineers made several assertions as justification for the move. The agencies say the decision was based on “significant environmental damage” and “ongoing environmental harm,” as well as several implementation challenges. “To date, the limited details provided to support those assertions has contributed to only greater uncertainty for Congress, the states, and regulated entities,” the letter continues. “The agencies haven’t provided a complete analysis to back their assertions.” *********************************************************************************************** Brazil Corn Harvest Forecast Drops Over Eight Percent Brazilian farmers will harvest just under 94 million tons of corn this season. A Reuters poll of ten harvest forecasters indicates a fall of 8.5 percent from the last forecast due to a severe drought. Second-crop corn failure will lead to higher imports and lower exports of the crop. The forecasters say Brazil, home to some of the world’s largest meat processors, will need to keep the grain to make it livestock feed. One agribusiness consultant cut her corn export forecast to 22.5 million tons, down from a previous prediction of 32 million tons, and told Reuters she estimates Brazilian corn import needs may reach four million tons. If the dry weather persists, corn yields may fall even further in some of the key corn-producing states in Brazil. In April, a Reuters poll of 11 forecasters predicted a record corn crop of 107 million tons, but poor weather during the development stage damaged that prospect. Brazil’s second-corn crop, which gets planted after the country’s soybeans get harvested at the end of Brazil’s summertime, has been hit hardest by a lack of rainfall. *********************************************************************************************** Farm Bank Lending Stay Strong in 2020 Despite a global slowdown in 2020 brought on by COVID-19, agricultural lending by U.S. farm banks remained strong at $98.6 billion, just a 1.8 percent drop from the prior year. The American Bankers Association’s annual Farm Bank Performance Report attributes the change to a 6.7 percent decline in agricultural production loans. By contrast, the outstanding loans secured by farmland increased 2.1 percent to $56.7 billion. The report says rising costs, supply and production bottlenecks, price volatility, and a significant increase in federal cash payments depressed demand for agricultural production loans in 2020. Government payments also helped producers pay down existing loan balances. The Chief Economist for the ABA says American farm banks have remained healthy over the past year and continue to play a critical role in supporting farmers and the broader U.S. economy through the turbulence of 2020. The report also says the strong asset quality and capital levels of America’s farm banks will help ensure that they continue to provide support to rural communities. Farm banks also continued to build strong capital reserves throughout 2020 and are well-insulated from risks associated with the agriculture sector. Equity increased nine percent to $52.6 billion. ********************************************************************************************** Colorado Supreme Court Blocks Livestock Measure The Supreme Court in Colorado blocked a statewide ballot initiative that would have expanded animal cruelty regulations from appearing on the November 2022 ballot. The Supreme Court says the initiative advances two subjects in its language, violating the state’s single-subject requirement for state statutes. Center Square Dot Com says the proposed ballot measure is called Initiative 16 and would impose new restrictions on animal husbandry that required ranchers to wait at least one-quarter of an animal’s life before sending it to slaughter. Ranchers in violation of the measure may have been charged with a crime. The measure would also have expanded the statutory definition of animal cruelty to include artificial insemination and other penetrations, “however slight.” The court says that the two subjects invite a “potential for the very kind of surprise that the single-subject requirement seeks to guard against.” Voters may not understand that what is called a livestock initiative would also affect the care of all animals or vice versa. Initiative 16 was approved by the state’s Title Board in late April and immediately drew the wrath of rural communities and the state’s agricultural community. *********************************************************************************************** NBB Highlights Policy Priorities in Letter to Congress The National Biodiesel Board delivered a letter to Congress signed by more than 50 companies outlining the industry’s policy priorities. The priorities include maintaining tax incentives for low carbon biofuels, supporting infrastructure to deliver more clean fuels to consumers, and optimizing the Renewable Fuel Standard to maximize environmental benefits. “As Congress develops legislation to address the nation’s infrastructure, climate, and economic priorities, we ask that you support the continued growth of the biodiesel and renewable diesel industry,” they say in the letter. “U.S. biodiesel and renewable diesel producers are meeting America’s need for better, cleaner transportation fuels right now. We are also generating economic, environmental, and health benefits for many states and communities.” The letter highlights the $17 billion annual economic impact of the biodiesel and renewable diesel industries employ more than 65,000 Americans. It also highlights the carbon benefits the industry delivers. Last year, the U.S. used three billion gallons of renewable diesel and biodiesel, which achieved an average 74 percent reduction in carbon emissions compared to petroleum diesel. The NBB is hosting a virtual Advocacy Day Fly-In today (Wednesday). ********************************************************************************************** FSA Accepting Nominations for County Committee Members The Farm Service Agency is accepting nominations for county committee members. Nomination forms for the 2021 election must be postmarked or received by the local FSA office by August 2. Elections will take place in certain Local Administrative Areas for these members who’ll make important decisions about how federal farm programs are administered locally. “We need enthusiastic, diverse leaders to serve other agricultural producers locally on FSA County Committees,” says FSA Administrator Zach Ducheneaux. “Just as our nation’s agriculture industry is diverse from coast to coast, so are the viewpoints and experiences that you can represent on your local committee.” He also says now is the time to step up and truly make an impact on how federal farm programs are administered at the local level to reach all producers fairly and equitably. Producers who participate or cooperate in a USDA program and reside in the LAA that’s up for election this year may be nominated for candidacy for the county committee. Around the nation, more than 7,700 dedicated members of the agricultural community are serving on FSA county committees.
| Rural Advocate News | Wednesday June 23, 2021 |
Washington Insider: China Port Woes Backing Up Global Shipping Shipping issues have again roiled the global transportation market, with impacts emanating from one area of the world -- China. This time, the bottlenecks in China and not the Suez Canal. While global demand for goods produced in Asia is one factor, the New York Times reported that problems in the third largest container port in the world of Shenzhen is making the problems even worse. "The shipping delays are related to the Chinese government's stringent response to a recent outbreak of the virus," the Times said. "Shenzhen, with a population of more than 12 million, has had fewer than two dozen locally transmitted coronavirus cases; city health officials have linked them to the Alpha variant, which was first identified in Britain." What is key is that the China has ordered testing of all 230,000 that live hear the Yantian container port where the first case was found May 21. But what is really snarling the system? Contact between port employees and sailors has been banned. "The city has required port employees to live in 216 hastily erected, prefabricated buildings at the docks instead of going home to their families every day," the Time said. The situation has resulted in the port capacity to handle containers being very strained, still at 30% below its capacity as of last week. State media in China has said that it could take the rest of the month before a full recovery can be seen. However, the times quoted Tim Huxley, the chairman of Mandarin Shipping which is based in Hong Kong, it could take the rest of the year to short out all the shipping delays at Yantian and elsewhere. Already, scores of ships have been anchored off Shenzhen and Hong Kong with wait times to get to the dock at 16 days for the Yantian container port. While the Yantian port had halted loading export containers for six days early in June, the problems have continued. The situation is now causing global delays similar to those seen in the Suez Canal situation where the Ever Given ran aground and blocked shipping for a week. This has sent shipping rates skyrocketing. "The average cost of shipping a 40-foot container from East Asia to Europe or North America has roughly quadrupled in the past year," the Times noted. "Rates have soared this month with the Yantian difficulties." Within China there are also impacts being seen. The Shenzhen Daily reported that an international logistics company in the Yantian District was hit by the delays and it faced penalties and fines for the delays at the port. The China Council for the Promotion of International Trade (CCPIT) Shenzhen issued a proof letter of limited service at the port, which the report said lessened the company's liability for the delay; CCPIT Shenzhen said that it has handled 2,022 business-related proof documents, the report noted. The Suez Canal situation backed up a lot of container shipping around the globe and now the situation in China is expected to further delay a return to normal. But even as shipping issues wane there is still the matter of getting cargoes unloaded at destination ports like Los Angeles or Long Beach. The strains on the ports there are from the heavy volume of containers arriving which is taxing systems to move those goods from the port inland. Similar situations are being reported in China as getting goods onloaded and offloaded has become a challenge. This is one more challenge for agricultural exports. Containers have already become a bottleneck issue for agriculture, with the Federal Maritime Commission opening an investigation into companies opting to ship empty containers back to China and other Asian destinations so that they can more quickly return with goods in demand from U.S. consumers. But this latest snag in China has probably greatly reduced the benefit that shippers expected to reap by not hauling ag cargoes. So we will see. Agricultural interests may feel somewhat relieved that they might not be as impacted as they could otherwise be, but it still represents the challenges that the increasing focus on U.S. ag exports. And the shipping situation is one that bears watching closely, Washington Insider believes.
| Rural Advocate News | Wednesday June 23, 2021 |
Two US Facilities Delisted From Exporting To Mexico USDA's Food Safety and Inspection Service (FSIS) said that the Smithfield Foods plant at Tar Heel, North Carolina, and the Rava Forwarding facility in Laredo, Texas, have been delisted as plants eligible to ship products to Mexico. FSIS said the Smithfield facility was delisted June 16 relative to slaughter, boning, cut up, grinding, and processing pork, while the Rava Forwarding cold storage facility was delisted June 18. The facility is listed as cold storage for beef, poultry, pork, bison, sheep and wild game. The Smithfield situation involved Mexican concerns over quality of a specific lot of hog skins sold to a third-party company that were eventually exported to Mexico, according to Keira Lombardo, Smithfield chief administrative officer. "We have conducted a thorough internal inquiry and have determined that the issue originates with the third-party company, not with Smithfield nor the facility," Lombardo said. Reuters reported that Mexico's health safety agency Senasica was reviewing the matter.
| Rural Advocate News | Wednesday June 23, 2021 |
Republicans on Senate Panel Seek More Explanation From EPA On WOTUS Republican members of the Senate Environment and Public Works Committee are asking EPA and the U.S. Army Corps of Engineers for the review the agencies said was conducted which prompted them to conclude that the Trump administration's Navigable Waters Protection Rule needed to be repealed and replaced. "After the administration's continued commitments to transparency, engagement, and communication with stakeholders and Congress on this issue, the lack of transparency surrounding the decision to abandon this legally defensible and environmentally sound rule is disheartening," the lawmakers said in the letter to EPA Administrator Michael Regan and acting Assistant Secretary of the Army for Civil Works Jaime Pinkham. The lawmakers said the administration has not provided its analysis to back up their claims the Trump-era rule caused "significant environmental damage" and "ongoing environmental harm" and that it faced "implementation challenges." They are asking for specifics of the harm, damage and implementation issues and information on the 333 projects that did not require a permit under the Trump rule but would have under the Obama-era Waters of the U.S. (WOTUS) rule. The lawmakers are seeking a response by July 5.
| Rural Advocate News | Monday June 21, 2021 |
Refiners Over One Billion Dollars Short on RINs U.S. refiners are short on $1.6 billion worth of credits they need to comply with U.S. biofuel laws. Reuters reviewed corporate earnings disclosures to come up with that total. The big liability comes as the Biden Administration considers potential relief for oil refiners from biofuel mandates. Refiners say they need the relief because of soaring credit costs and the economic hardship brought on by COVID-19 that’s hurt the industry. RIN prices are higher since the start of 2021 because of higher feedstock costs and market uncertainty. RINs were trading at the highest price since the program began 13 years ago. Prices have dropped 50 cents since hitting a recent high of $2 a credit. If the Biden administration grants some relief from the mandates, refiners may not need to fulfill all their obligations. Some lawmakers and refining industry representatives have requested help for the industry. The White House hasn’t said what actions President Biden will take to relieve refiners of their obligations under the Renewable Fuel Standard. ********************************************************************************************** USDA Considering Tougher Organic Livestock Rules Ag Secretary Tom Vilsack says the Biden Administration will reconsider the Trump Administration’s interpretation of the Organic Foods Production Act. The Trump administration said the Act doesn’t authorize USDA to regulate the practices that were the subject under the 2017 Organic Livestock and Poultry Practices final rule. “I have directed the National Organic Program to begin a rulemaking to address this statutory interpretation and to include a proposal to disallow the use of porches as outdoor space in organic poultry production over time,” Vilsack says. “The rulemaking will also include other topics that were the subject of the OLPP final rule.” The secretary also says they anticipate sending the proposed rule to the Office of Management and Budget within six to nine months from the date of the remand. “We look forward to receiving public comments on those topics and, after reviewing those comments, USDA will publish a final rule,” he adds. *********************************************************************************************** Wheat Growers Applaud Further Resolution in U.S., UK Dispute U.S. Wheat Associates and the National Association of Wheat Growers welcomed the announcement that the United Kingdom and the U.S. dropped competing tariffs. The two sides agreed to a five-year moratorium on retaliatory tariffs for large civil aircraft subsidies. This break suspends retaliatory tariffs the UK had in place on non-durum U.S. wheat imports. The long-running dispute at the World Trade Organization allowed the UK and the EU the right to impose tariffs on non-durum U.S. wheat imports, which mainly impacted hard red spring and some hard red winter wheat. “The wheat industry is thankful to President Biden and Ambassador Tai’s commitment to prioritize the trade relationships between the United States, European Union, and now the United Kingdom,” says Wheat Growers CEO Chandler Goule. “Each five-year truce with the U.K. and the European Union removes a significant trade barrier on wheat exports and provides long-term certainty for wheat growers in the Upper Midwest.” Wheat Associates President Vince Peterson is hopeful that this agreement provides the basis for an open dialogue on trade that will pre-empt the use of retaliatory tariffs in the still unresolved steel and aluminum dispute between the U.S. and the UK. ********************************************************************************************** Rural Bankers Say Local Economies are Stronger For the seventh month in a row, the Creighton University Rural Mainstreet Index stayed above growth neutral. The overall index is still strong at 70, falling almost nine points from May’s record high of 78.8. The index ranges from zero to 100, with 50 being growth neutral. That comes from a monthly survey of bank CEOs in rural areas of a 10-state region that depends on agriculture and energy. Approximately 46 percent of bank CEOs report their local economy expanded between May and June. “Strong grain prices, the Fed’s record-low interest rates, and growing exports have underpinned the rural main street economy,” says Ernie Goss of Creighton University, who oversees the index. He did say that several bankers raised future concerns. Steve Simon, CEO of the South Story Bank in Iowa, says, “Continued dry conditions will start to have an effect on markets and crops soon” For the ninth straight month, the farmland price index advanced significantly above growth neutral. The June farmland index slipped lower but is still strong at 75.9. The June Farm Equipment Sales Index rose to 71.6, the highest level since 2012. *********************************************************************************************** Lamb Board Hosts Zoom Cooking Class to Showcase Lamb Almost 150 home cooks attended a recent virtual cooking class put on by the American Lamb Board. Educating consumers on using American lamb in their home kitchens is a big part of the board’s efforts to grow the industry. For the Zoom class, the lamb board teamed up with Homemade, a partner of the nature conservancy that offers weekly cooking classes and an earth-friendly blog. Class participants joined chef Joel Gamoran (GAM-eh-ron), the host of A & E’s hit series “Scraps” in making a Lamb Bahn (Bon) Mi (me) burger, which is a Vietnam take on the classic American burger. The dish uses ground lamb mixed with garlic, ginger, fish sauce, honey, lime, and a side of pickled vegetables. Besides his TV series, Gamoran is a regular on NBC’s Today Show, where he showcases recipes that promote environmental sustainability to a worldwide audience. Participants in the online session received a recipe booklet with outdoor cooking American Lamb recipes and an insulated reusable grocery bag from ALB. The cooking class is also a part of the Lamb Board’s Outdoor Cooking Adventures Campaign, which challenges consumers to showcase their outdoor cooking prowess with American lamb. ********************************************************************************************** Dairy Checkoff Launches Monthly Podcast National and local dairy checkoff organizations are working together to get into podcasting. They’ve launched a monthly program called “Your Dairy Checkoff,” which will showcase how checkoff programs across the country are working together to build dairy sales and trust in today’s changing marketplace. Each episode will be hosted by dairy farmers or industry experts. Listeners will hear conversations focusing on local, national, and global dairy promotion, including consumer research, dairy nutrition, as well as science and issues updates. Farmers will have a hand in the selection of topics by providing feedback. “The dairy checkoff is excited to take advantage of increasingly popular podcast programming to share examples of how the dairy promotion organizations are working together to deliver results for us,” says Missouri dairy farmer Alex Peterson, who serves as Chair of the National Dairy Promotion and Research Board. The first episode is called “Reaching Gen Z: Through the World of Gaming,” and it features a conversation about how the checkoff is looking to online video gaming to reach this consumer segment, which is 10 to 23 years old.
| Rural Advocate News | Monday June 21, 2021 |
Washington Insider: Confirming an Administration The process of building a new administration takes time, especially when you consider there are some 4,000 politically appointed positions that need filled each time a new administration takes office in Washington. Of those 4,000, there are more than 1,200 that the U.S. Senate has to confirm. The Washington Post and the Partnership for Public Service have been tracking the nominees for about 795 of the 1,200 positions requiring Senate confirmation -- include Cabinet secretaries, chief financial officers, general counsels and scores of sub-Cabinet roles that are key in the process of operating the government. As of mid-June, President Joe Biden has seen 67 confirmed into those positions, putting him ahead of President Donald Trump, but still lacking the pace seen under the presidencies of Barack Obama and George W Bush. As for Cabinet nominees, Biden actually moved quicker than either Trump or Obama as they took nearly a month longer to get officials confirmed into those roles. And, the Post notes, “Biden is the first president in decades to secure those picks without a failed nominee, despite an evenly divided Senate.” All of Biden's Cabinet picks were confirmed before April. But it hasn't been a controversy-free run for Biden, either. The White House withdrew the nomination of Neera Tanden to head up the Office of Management and Budget was withdrawn after facing bipartisan opposition. She is the highest profile pick that has not made it through, but the White House opted to pull the nomination rather than have it be defeated in the Senate. There are several agencies where there have been no nominations made. At the Office of the U.S. Trade Representative, only Katherine Tai has been confirmed out of at least four positions that require Senate confirmation. Sarah Biachi's nomination to be a deputy USTR was sent to the Senate May 27 and nomination of Jayme White as another deputy USTR was sent forward June 9. Both had been announced as nominees April 16. But no nominee has either been announced or sent to the Senate for the combined post of Deputy USTR and representative to the WTO and key for agriculture, no nominee as the chief U.S. ag negotiator has been announced. But Trump did not send the nomination of Gregg Doud to that role until June 19, 2017, and the Senate Ag Committee favorably reported out the nomination October 24 of that year. It took until March 1, 2018, before Doud was confirmed to the role. At USDA, Tom Vilsack was announced as Biden's pick as Agriculture Secretary December 8, with the nomination sent forward January 20. The Senate Ag Committee reported out the nomination February 2 -- the same day as his confirmation hearing -- and the Senate confirmed Vilsack to the role February 23. Trump named Sonny Perdue as his pick to run USDA on January 17, 2017, with the nomination sent to the Senate Ag Committee March 9 and he was reported favorably out of the panel March 30. He was confirmed April 24, 2017. But few have joined Vilsack at USDA so far, with only Jewell Bronaugh confirmed May 13 as deputy secretary, the number two spot at the agency. So far, Robert Bonnie has been nominated to be undersecretary for farm production and conservation, with his nomination reaching the Senate April 27. No hearing date has been set. But barring a major setback, he should be in the role quicker than his Trump predecessor, Bill Northey, whose nomination took until September 2017 to be announced and sent to the Senate and the Senate Ag Committee reported his nomination out October 18 of that year. But he did not win full Senate okay until February 27, 2018, as holds were placed on his nomination. But there has been no one named for undersecretary for trade and foreign agricultural affairs so far in the Biden administration, a post that Vilsack declared an important one during his confirmation hearing. Ironically, that post was created in the 2014 Farm Bill while Vilsack was heading USDA for the Obama administration, yet he never filled that role. Ted McKinney held the post in the Trump administration after being nominated June 2017, referred to the Senate Ag Committee in August, with the panel favorably reporting out his nomination October 2 and the Senate cleared him October 3. The Biden administration has named Jennifer Moffitt as undersecretary for marketing and regulatory programs, a seemingly key post in this administration given their focus on market concentration. Her nomination was sent to the Senate Ag Committee April 28, a day after it was announced. But no action beyond that has taken place. Somewhat surprisingly, there has not been a pick for assistant secretary for civil rights so far by the Biden team. But that post went unfilled for the four years Trump held office. Sometimes the slowness is getting individuals willing to take the role. Other times, it has been the first or even second choices not being able to make it through the confirmation process. And several Trump nominees that had been lingering at the end of the term of Congress that started with Trump's time in office were sent back to the White House after not being acted on. And some of those nominations were never sent forward again to the Senate. So we will see. Getting an administration fully staffed can take typically years, at least relative to those positions that require Senate confirmation. But those positions are key for the operations of a host of USDA functions that directly affect farmers so the progress on this front needs to be closely watched, Washington Insider believes.
| Rural Advocate News | Monday June 21, 2021 |
China Focus on Commodity Prices Continues China's National Development and Reform Commission (NDRC) on Thursday unveiled new rules for the management of commodity price indices “as part of its ongoing efforts to curb unreasonable price swings and maintain stable prices in the commodity market,” according to a report on the announcement by China Daily. The new rules take effect August 1 and require those providing price indices to be “independent of the direct stakeholders in the commodity and service markets covered by the index, and the basic information of the index providers, the index compiling plan and other necessary information should be fully disclosed,” the report said, noting that authorities “can conduct compliance reviews and take disciplinary measure for noncompliance.” Meng Wei, spokesperson for the NDRC, said the agency will “also work with relevant parties to release batches of (reserves) in a timely manner for some time to come, to increase the market supply, ease the strain on enterprises costs and guide the prices to return to a reasonable range.” She noted that efforts to far to address unreasonable and rapid commodity price rises this year “have taken the heat out of market speculation” and that prices for items like iron ore, steel and copper have started to return to more-normal levels. But she also issued what can be read as a clear warning to market participants: “The NDRC will closely monitor changes in the market, strengthen regulation of both futures and spot markets and maintain the normal order of the market.”
| Rural Advocate News | Monday June 21, 2021 |
USDA To Reinstate Animal Welfare Standards On Organic Meat USDA will be reinstating standards for animal welfare on farms that produce organic meat, standards that were withdrawn by the Trump administration. USDA Secretary Tom Vilsack announced that the USDA will “reconsider the prior Administration's interpretation that the Organic Foods Production Act does not authorize USDA to regulate the practices that were the subject of the 2017 Organic Livestock and Poultry Practices (OLPP) final rule,” including meaningful outdoor access for organic chickens and other animal welfare improvements. The plan had been on public review at the Federal Register, but has since been removed (along with scores of other items on the public inspection list) due to the Juneteenth Holiday. Presumably, it means the organic rule and others will be placed back on public inspection Monday and likely would be published Tuesday in the Federal Register.
| Rural Advocate News | Monday June 21, 2021 |
Monday Watch List Markets No doubt, traders will be hawking the latest weather forecasts Sunday evening and Monday morning and may pause at 8 a.m. CDT to see if USDA has an export sale announcement. USDA's weekly grain export inspections are due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Given the hot and mostly dry past seven days, USDA's crop condition ratings are expected to be lower Monday. The CFTC's Commitments of Traders report will also be released Monday afternoon. Weather Rains from a system over the weekend will continue to develop along a front from the Southern Plains to the eastern Midwest and continue to push southeast through the day. The rain has likely produced some delays to the winter wheat harvest. Temperatures have fallen below normal behind this system and will ease drought stress for a couple of days before temperatures rise again.
| Rural Advocate News | Friday June 18, 2021 |
U.S.-UK and EU Suspend Airplane Tariffs Trade Representative Katherine Tai returned to the U.S. Thursday following a successful trip to Europe. Tai, along with counterparts from the European Union and the United Kingdom, agreed to suspend tariffs caused by disagreements over aircraft. Tai, announcing the agreement with the UK Thursday, says both the EU and UK and the U.S. will establish working groups on large civil aircraft. Each side intends not to impose countermeasures for a period of five years, starting July 4, 2021. Countermeasures in the dispute in the past include imposing tariffs on U.S. agriculture and food products. Regarding the UK, Tai states, “Reaching an agreement with the United Kingdom to finally put the large civil aircraft disputes behind us is a great step forward for our special relationship.” House Agriculture Committee Chair David Scott, a Georgia Democrat, says, “This announcement is welcome and will certainly set the stage for important future bilateral agreements between the U.S. and our European allies.” *********************************************************************************** Biden Administration Released New Broadband Coverage Map A new broadband mapping tool released by the White House Thursday shows the need for rural broadband. The Indicators of Broadband Need map indicates areas of need by marking them red. The tool unsurprisingly marks much of the U.S. land area, particularly rural areas, as in need of broadband. Except for city-centers, states like Idaho, Montana, Nebraska and Texas, among many others, are largely identified as areas in need. Commerce Secretary Gina Raimondo (Roh-MUN-doh) says the mapping tool “paints a sobering view of the challenges facing far too many Americans as they try to connect to high-speed broadband.” The map contains data aggregated at the county, census tract, and census block level from the U.S. Census Bureau, the Federal Communications Commission, and internet speed testing providers. The data classifies areas of need by locations that lack the FCC’s current benchmark for fixed broadband service of 25 megabits per second download, three upload. *********************************************************************************** Senate Ag Scheduled Hearing on Cattle Markets Senate Agriculture Committee Chair Debbie Stabenow Thursday announced a hearing titled “Examining Markets, Transparency, and Prices from Cattle Producer to Consumer.” The Michigan Democrat, along with the committee’s ranking Republican John Boozman of Arkansas, scheduled the hearing for the afternoon of Wednesday, June 23. Cattle market transparency is a priority for cattle producers as disruptions in the market, along with pandemic-related issues, developed. Legislation, such as the Cattle Market Transparency Act, seeks to correct the disruptions and improve trade for cattle producers. Introduced in March, Farm Bureau Congressional Relations Director Scott Bennett said at the time the legislation would ease frustration in the market by “creating a contract library for producers to compare the terms of their contracts versus others in the industry." In May, a diverse group of farm and cattle organizations came together to focus on cattle market transparency concerns. The issue started growing in 2019 when a fire burned a Tyson plant in Holcomb, Kansas. *********************************************************************************** U.S. Drought Monitor Update The latest U.S. Drought Monitor update Thursday shows widespread drought conditions across roughly half of the United States. Warmer than normal temperatures continued their hold on the northern tier of the Lower 48, particularly in the northern Great Plains and Upper Midwest. Across the north, widespread degradation of drought conditions occurred in areas where heavy rainfall missed. A few areas that received heavy precipitation and saw localized improvements were coastal Oregon and Washington, western Montana, and eastern Montana and western North Dakota. The most severe drought ratings are found in the West region and North Dakota. For the Drought Monitor’s West region, which covers nine states, the update classifies 55 percent of the region in extreme drought and 26 percent in exceptional drought, the most severe category. The drought extends through northern High Plains states and the upper Midwest to the Great Lakes. With some droughts indicated on the East Coast, the rest of the U.S. is largely free from drought. ************************************************************************************ Research Supports Dairy’s Net Zero Initiative with $10 Million Grant The Foundation for Food and Agriculture Research recently awarded a $10 million grant supporting U.S. dairy’s Net Zero Initiative. Announced Thursday, the funding will support a six-year project titled “Dairy Soil and Water Regeneration.” The project focuses on building soil health to reduce greenhouse gases and improving water quality, along with enabling new economic benefits. The research will provide measurement-based assessments of dairy’s greenhouse gas footprint for feed production and set the stage for new market opportunities related to carbon, water quality and soil health, according to Dairy Management Inc. The grant will be matched by financial contributions from partners such as Nestlé, the dairy industry, including Newtrient, and in-kind support for a total of $23.2 million. The funds are managed by the Dairy Research Institute. Dairy Management Inc. scientists will serve as the project leads to address research gaps in feed production and manure-based fertilizers that, once filled, will enable new markets, incentives and investments in dairy sustainability. ************************************************************************************ McDonalds CEO Expect Dine-in Eating to Bounce Back McDonald’s CEO Chris Kempczinski (Kim-chin-skee) expects dining inside restaurants to bounce back following the COVID-19 pandemic. Kempczinski states, “I think dine-in is always going to be here,” making his comments during a CNBC Evolve Conference panel, adding, “Eating is such a social experience, and dine-in is a part of that social experience." Digital orders and drive-thru sales surged through the pandemic for the fast-food sector, along with curbside pickup for sit-down restaurants. Dine-in customers make up about a quarter of McDonald's U.S. sales. The McDonalds CEO says, “I think in the U.S., we may see dine-in take longer to recover," but adds, "we're certainly expecting that dine-in is also going to be an important part of the McDonald's experience." Other fast-food chains in the U.S. are building new locations with less seating and a focus on the to-go experience, based on how sales shifted during the pandemic. However, most plan to keep some form of seating for dine-in customers moving forward.
| Rural Advocate News | Friday June 18, 2021 |
Washington Insider: Juneteenth Now a Federal Holiday President Joe Biden signed into law Thursday a measure that makes June 19 a federal holiday -- Juneteenth -- marking the end of slavery in the United States in 1865. June 19, 1865, was the date that Union General Gordon Granger read the Emancipation Proclamation to African-Americans in Texas, roughly two-and-one-half years after the proclamation was issued on January 1, 1863. The new holiday comes at the culmination of legislative action this week that saw the Senate approve legislation to declare the June 19 a federal holiday. The House followed suit Wednesday and approved the plan on a 415-14 vote. What the quick development means is that today, June 18, will be the observed federal holiday, with the U.S. Office of Personnel Management (OPM) announcing most federal workers would get Friday off since June 19 falls on a Saturday. But the situation has spawned a host of questions. Some have lit up social media sites, expressing disappointment that the OPM made the announcement via Twitter as opposed to an official notice on their website. However, the OPM does update its government operating status each day with a notice posted on their website typically shortly after midnight Eastern Time. What this does is set off a host of questions, however, including what services will or won't be available. The quick passage and enactment of the law has resulted in potentially more answers than questions, especially on things like U.S. mail. As of mid-afternoon on Thursday, there was no word if mail delivery would be interrupted or not. It would appear most U.S. federal government offices will be closed on Friday in observance of the holiday which would include USDA service centers. However, Farm Service Agency Service Centers have been allowing limited visitors to those offices or taking things on an appointment-only basis. So a quick check with your local office is the best bet if you had an appointment for June 18. Markets will be open for business. The Securities Industry and Financial Markets Association (SIFMA) is an industry trade group that makes recommendations for U.S. bond markets. The group said that the Juneteenth would be incorporated in its holiday schedule in coming years. U.S. stock markets and commodity markets will also be open for trading and on regulator trading hours. A spokeswoman for the NASDAQ exchange told MarketWatch that U.S. markets operated by the exchange will remain open on Friday, a big expiration of options and futures, and Monday “to maintain a fair and orderly market and to minimize operational risks.” And there is the matter of the agencies that regulate these markets, including the Securities and Exchange Commission and the Commodity Futures Trading Commission. They have announced they will be closed on Friday. Typically, those agencies are the ones that markets would have to work with to determine any holiday schedules to make sure that all the needed activities are addressed. And markets are not always closed for every federal government holiday, or at least not always right away. The Martin Luther King Jr. holiday January 19 was officially established in 1986 and the stock markets and other exchanges opted to remain open, but observe a minute of silence. However, that changed in 1998 when the New York Stock Exchange opted to close and other markets have also opted to close for that day. But there are also days when markets close that are not federal government holidays such as Good Friday. As for companies, the Wall Street Journal noted that Juneteenth is observed at 9% of businesses, citing a survey conducted this year by employer consulting firm Mercer LLC. But the key for ag markets is that it removes another day of price discovery if markets opt to close in observance of the holiday. And after a day of steep losses on June 17, that will mean Friday could see another active market day. If markets were to suddenly be closed Friday, that could create either unfair advantages or unintended costs for those that would need to adjust their market positions in the wake of the big market decline Thursday. While we are currently in a period where there are no U.S. government payments like loan deficiency payments being made, the have an extra federal government holiday will not affect any payments to farmers. In years past, the Columbus Day holiday has been one where it could create a payment opportunity for farmers as the government closure meant the Farm Service Agency was not updating its daily rates used to determine Loan Deficiency payments, a situation which could allow some producers to capture an extra day of pricing their crops knowing what the LDP rate would be. So we will see. Getting an extra holiday with pay would be something many workers would appreciate. But there are more than a few moving parts that mean the full impact of this quickly enacted holiday will unfold in the years to come and could be something to follow closely as it relates to markets and the ability of farmers to market their crops, Washington Insider believes.
| Rural Advocate News | Friday June 18, 2021 |
Senate Ag Committee Sets Hearing On Cattle Market/Industry The Senate Agriculture Committee has set a hearing for June 23 on “Examining markets, transparency, and prices from cattle producer to consumers.” The move was welcomed by Sen. Chuck Grassley, R-Iowa, who has been a long critic of the U.S. cattle market situation and consolidation in the industry. “GR8 NEWS Ag Cmte answering my calls 2hold a hearing on June 23 on unfairness in cattle market/industry (plus)need for transparency,” Grassley said on Twitter. “This is opportunity to educate senators/public on the dire issues family farmers r facing while up against Big Cattle/ 4 packers control 80% of market.”
| Rural Advocate News | Friday June 18, 2021 |
US-UK Set Five-Year Suspension of Tariffs in Aircraft Dispute Following on the lines of the compromise announced earlier this week with the European Union (EU), the U.S. and UK reached agreement to suspend tariffs they have imposed over the Airbus/Boeing dispute. The agreement with the UK is said to be nearly identical to the one reached with the EU earlier this week on the topic. The U.S.-UK accord includes establishing a working group on large civil aircraft with each side agreeing to provide any financing to aircraft firms will be “on market terms” and that research and development funding will be provided “though an open and transparent process.” The two will also jointly analyze and address “non-market practices of third parties that may harm their respective large civil aircraft industries.” The five-year tariff suspension applies from July 4.
| Rural Advocate News | Friday June 18, 2021 |
Friday Watch List Markets There are no official reports on Friday's docket, but traders will continue to pay close attention to the latest weather forecasts, any news of an export sale and any news regarding a change in U.S. biofuels policy. Rain and cooler temperatures are expected to arrive next week, but Monday afternoon's Crop Progress report will likely show a decline in crop condition ratings. Weather Batches of thunderstorms from Thursday night's activity will continue over the eastern Midwest on Friday. Some storms could be severe with wind and hail threats and moderate rainfall amounts. Heat continues to be suppressed as a front drifts farther south. More isolated showers will be found to the west across the Central Plains and we await the development of a tropical system across the Gulf of Mexico with its likely landfall in the Louisiana coastline Friday night.
| Rural Advocate News | Thursday June 17, 2021 |
USDA Seeks Public Input on Racial Justice and Equity The Department of Agriculture Wednesday published a Federal Register Notice requesting public input on efforts to advance racial justice and equity across the Department. The action follows an executive order, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, signed on President Joe Biden’s first day in office. Dr. Dewayne Goldmon, Senior Advisor for Racial Equity, states, “We are steadfast towards ending discrimination in all its forms wherever it exists.” The information gained through the notice and public listening sessions will aid in identifying barriers that people of color, underserved communities, and others may face regarding USDA programs. USDA will use this information to identify opportunities to address systemic inequities. The notice will be available for public input until July 15, 2021, and is available online through the Federal Register. In addition, USDA will provide the information gathered to the impending Racial Equity Commission it seeks to launch later this year. *********************************************************************************** Argentina Close to Deal to Reopen Beef Exports Argentina appears on track towards reaching an agreement to reopen beef exports. The potential deal comes days ahead of the expiration date on the government's month-long suspension, according to Reuters. Argentina paused beef exports to combat domestic inflation, which is estimated overall at about 50 percent this year. Since enacting the export ban, Argentine beef packers began negotiating with the government to lift the restrictions, fearing they could be extended. An Argentine government official tells Reuters, “We are seeking an agreement that would allow the meat export market to reopen while expanding production enough to guarantee domestic supplies as well.” Argentina exported roughly 28 percent of the 956,000 metric tons of beef produced in the first four months of 2021. Argentina is the second-largest supplier of beef to China, behind Brazil. Beef prices are surging around the world as China is importing more beef, and higher grain prices are pushing feed costs higher. *********************************************************************************** USDA: Don’t Forget to File Acreage Reports Farmers who have not yet completed their crop acreage reports after planting should make an appointment with their local Farm Service Agency office before the deadline. July 15 is a major deadline for most crops, but acreage reporting deadlines vary by county and crop. FSA Administrator Zach Ducheneaux (DOO-sheh-no) says, “Once planting is complete, call your local FSA county office to make an appointment.” An acreage report documents a crop grown on a farm or ranch and its intended uses. Filing an accurate and timely acreage report for all crops and land uses, including failed acreage and prevented planted acreage, can prevent the loss of benefits. Producers can contact their FSA county office for acreage reporting deadlines that are specific to their county. If the crop is not planted by the acreage reporting date, then the acreage must be reported within 15 calendar days after planting is completed. *********************************************************************************** USDA Releases Livestock, Dairy, and Poultry Outlook The Department of Agriculture’s Economic Resource Service Wednesday released the latest Livestock, Dairy and Poultry Outlook. While a cyberattack disrupted cattle slaughter for two days in June, the Memorial Day week finished above 2020 levels, though well below 2019. USDA did raise cow slaughter in the second and third quarters of 2021, but fed cattle slaughter decreased in the second quarter. Meanwhile, strong demand supported hog prices and processor margins through May 2021. USDA raised lean hog prices to reflect assumptions of continuing strong processor demand. Total 2021 exports are forecast at almost 7.6 billion pounds, about four percent above last year. The milk production forecasts for 2021 and 2022 increased on higher expected milk cow numbers. Exports were relatively strong in April as cheese exports reached a record high, and butter exports were higher than in any month since June 2014. Finally, the 2021 broiler export forecast increased on recent data and improved production expectations. ************************************************************************************ South Dakota Seeks Emergency Waiver for CRP Haying and Grazing U.S. lawmakers from South Dakota call on Agriculture Secretary Tom Vilsack to provide an emergency waiver for CRP haying and grazing. The entire South Dakota Congressional delegation sent a letter to Vilsack this week asking him “to release as many additional CRP acres as possible." The most recent U.S. Drought Monitor indicates that more than 95 percent of South Dakota is experiencing drought conditions. CRP acres often help alleviate the hay and grazing shortage for livestock producers during a drought. The drought conditions are worsening and will quickly result in very short hay supplies and a lack of pastureland across the state. South Dakota has already suffered grazing losses not only to drought but also to fires this year. Emergency release of CRP for haying and grazing in the past has provided valuable feed in local areas in times of urgent need, many times keeping livestock operators from being forced to untimely liquidate their herds. ************************************************************************************ Report Finds Broccoli as the Favorite Vegetable in U.S. In a recent survey, broccoli secured the number one spot, yet again, as America's favorite vegetable, followed by carrots and corn. Green Giant’s annual Favorite Veggie Survey polled more than 5,000 Americans. Although broccoli remains America's favorite, the popularity of corn substantially increased over the past year. The survey found 100 percent of consumers surveyed who picked broccoli as their favorite vegetable noted taste as a top factor in making their selection. However, from 2019 to 2021, the number of states selecting carrot as the favorite vegetable has increased 500 percent. Those selecting broccoli has decreased 23 percent. Compared to survey data from 2020, seven times more states selected corn as a favorite in 2021. And while broccoli is America's favorite vegetable, according to the general population survey, corn is the runaway favorite vegetable among Americans ages 55-72. Tomato and cucumber were noticeable favorites in 2020 that didn't make the favorites list in 2021.
| Rural Advocate News | Thursday June 17, 2021 |
Republicans Lay Out Issues with Tax Plans Republican House and Senate Ag Committee leaders Tuesday unveiled a study detailing negative impacts that proposed changes to capital gains and estate taxes could have on intergenerational farm transfers, though the report does not consider potential exemptions the Biden administration has insisted would insulate farmers from some of the shifts. Economists from the Agricultural and Food Policy Center (AFPC) at Texas A&M University modelled effects the Sensible Taxation and Equity Promotion (STEP) Act -- which would eliminate stepped-up basis for capital gains taxes -- and the 99.5 Percent Act -- which would lower the estate tax exemption to $1 million per individual -- would have on a set of 94 "representative farms" included in a database maintained by AFPC. The policy center simulated how the two bills, either in isolation or together, would have based on asset information furnished in a survey of operators included in the AFPC database. If both tax measures were enacted, AFPC's analysis found 92 of 94 (98%) of the representative farms would see higher taxes, with an average liability of $1,431,408.
| Rural Advocate News | Thursday June 17, 2021 |
USDA Aid Announcement Comes With Details Awaited As USDA Secretary Tom Vilsack was set to testify on USDA's Fiscal Year (FY) 2022 budget this week, USDA announced aid for producers that it said will be issued over the next 60 days, mostly from the $1.9-trillion COVID aid plan approved in March and other aid efforts. USDA said the latest round of aid will be dispatched over the next 60 days, "which will continue to be focused on filling gaps in previous rounds of assistance and helping beginning, socially disadvantaged, and small- and medium-size [farms] that need support most." The funds include $200 million for small, family-owned timber harvesting and hauling businesses, $700 million for biofuels producers, support for dairy farmers and processors that includes $400 million for the coming Dairy Donation Program along with additional $580 million in supplemental Dairy Margin Coverage for small and medium farms and assistance for poultry and livestock producers left out of previous rounds of pandemic assistance, including contract growers of poultry. Plus the aid would include help for livestock and poultry producers forced to euthanize animals during the pandemic (March 1, 2020, through December 26, 2020). But some of the efforts outlined in the announcement are for programs that have not yet been finalized or have not yet been completed on the regulatory front.
| Rural Advocate News | Thursday June 17, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, along with weekly U.S. jobless claims and an update of the U.S. Drought Monitor. An index of leading U.S. indicators is set for 9 a.m., following by U.S. natural gas inventories at 9:30 a.m. Traders are staying close to the latest weather forecasts and will see if USDA can come up with a second export sale announcement in June. Weather Some isolated showers and thunderstorms around Iowa will dissipate this morning, but more scattered strong to severe storms will be possible across the central Corn Belt later today and tonight. Meanwhile, heat relief will continue to push southward behind a front but remain hot and mostly dry across the Central and Southern Plains. Conditions remain favorable for winter wheat harvest.
| Rural Advocate News | Wednesday June 16, 2021 |
U.S., EU Reach Deal to End Trade Dispute Over Subsidies President Biden and European Union leaders reached an agreement to halt the long-running trade dispute over subsidies for Boeing and Airbus. The Hill says the announcement comes as the president participates in an EU-U.S. summit in Brussels as part of his first trip overseas as president. The two sides hope it will improve relations between America and Europe as both are collectively trying to counter the rising power of China. U.S. Trade Representative Katherine Tai says the announcement resolves a long-standing “irritant” in the relationship between the U.S. and the European Union. “Instead of fighting with one of our closest allies, we are finally coming together against a common threat,” she says. As part of the deal, both sides will suspend the tariffs related to the dispute for five years, including tariffs on wine, spirits, tractors, and cheese. The Hill points out that Biden still hasn’t announced plans to lift tariffs on European steel and aluminum imposed by the Trump administration, which may still be a continued source of tensions. A senior administration official says the negotiations are ongoing, describing them as constructive, but did note that they will take time. ********************************************************************************************** NPPC Asking Congress to Address Bottlenecks at Nation’s Ports America’s hog farmers are the leading suppliers of high-quality pork, annually shipping more than $7 billion to overseas destinations. However, recent shipping delays at U.S. ports are disrupting exports. If these delays are addressed soon, they could lead to serious bottlenecks for pork and other agricultural exports. National Pork Producers Council President Jen Sorenson says, “Compounding the situation is the fact that carriers are failing to provide accurate notice to exporters of arrival/departure and cargo loading times, and then impose financial penalties on exporters for ‘missing’ those loading windows,” Sorenson said while testifying before Congress. “These costs are ultimately passed down the supply chain to farmers.” In discussing potential solutions to the bottlenecks, Sorenson urged for expanded operating hours for U.S. ports, and expedited Federal Maritime Commission enforcement preventing unreasonable financial penalties for exporters. All U.S. ports are experiencing shipping delays, but the West Coast is the most heavily impacted as it sends products to Asian-Pacific destinations, one of U.S. pork’s top export markets. *********************************************************************************************** USDA Announces Additional Aid for Producers and Business Ag Secretary Tom Vilsack announced additional aid intended for agricultural producers and businesses as part of the USDA Pandemic Assistance for Producers Initiative. Earlier this year, the secretary announced plans to use available pandemic assistance funds to address a number of gaps and disparities in previous rounds of aid. As part of the Pandemic Assistance initiative announced in March, USDA pledged to continue Coronavirus Food Assistance Program payments and to provide aid to producers and businesses left behind. Implementation of the assistance announced this week will continue within 60 days to include support to timber harvesters, biofuels, dairy farmers and processors, livestock farmers and contract growers of poultry, assistance for organic cost share, and grants for PPE. “USDA is honoring its commitment to get financial assistance to producers and critical agricultural businesses, especially those left out or underserved by previous COVID aid,” says Vilsack. “These investments through USDA pandemic Assistance will help our food, agriculture, and forestry sectors get back on track and plan for the future.” Since January, USDA has provided more than $11 billion worth of assistance to producers, as well as food and agriculture businesses. ********************************************************************************************** USDA Announces Dates for CRP and Grasslands Signup USDA set a deadline of July 23, 2021, for all agricultural producers and landowners to apply for the Conservation Reserve Program General Signup number 56. Also, the USDA’s Farm Service Agency will accept applications for CRP Grasslands from July 12 to August 20. This year, USDA updated both signup options to provide greater incentives for producers and increase its conservation benefits, including reducing the impacts of climate change. The signups are competitive and will provide annual rental payments for land devoted to conservation purposes. “We are excited to roll out our new and improve CRP General and Grassland signups,” says FSA Administrator Michael Ducheneaux (DOO-sheh-no). “The bottom line is CRP now makes more financial sense for producers while also providing a bigger return on investment in terms of natural resource benefits.” Through CRP, producers and landowners establish long-term, resource-conserving plant species to control soil erosion, improve water quality, and enhance wildlife habitat on cropland. CRP Grasslands helps landowners and operators to protect grassland, including rangeland, pastureland, and certain other lands, while maintaining the areas as grazing lands. For more information or to sign up for these programs, producers should contact their local USDA Service Center. ********************************************************************************************** Farm Groups Differ over USDA’s Packers and Stockyards Changes Several of America’s leading farm groups differ on the USDA’s proposal to consider three new rules to strengthen the Packers and Stockyards Act. National Farmers Union President Rob Larew told the Hagstrom Report that, “Shielding farmers from corporate abuse was one of the main objectives for Farmers Union since it was established. The publication of these planned administrative actions is a step in the right direction. Family Farm Action Alliance President Joe Maxwell says, “Past failures to adequately strengthen the Packers and Stockyards Act left the regulatory environment a haven for consolidation. The National Cattlemen’s Beef Association is less than enthusiastic. “As we did in 2010 and again last year, NCBA will fight hard to ensure that any regulations created or revised under the Packers and Stockyards Act do not reduce cattle producers’ ability to realize higher profits and make the decisions that are best for them” North American Meat Institute President and CEO Julie Anna Potts points out that the concepts in the three USDA proposals were rejected by eight federal appellate courts. “They were a bad idea in 2010, in 2016, and a bad idea in 2021,” she says. *********************************************************************************************** Produce Industry Returning to In-Person to Washington Conference Members of the produce industry will come together face-to-face at the 2021 Annual Washington Conference on September 20-22 in Washington, D.C. “After a year of virtual events, we’re thrilled to bring our industry back together in person for one of the most important events of the year,” says United Fresh Chairman Danny Dumas. “It’s our opportunity to explain our challenges and voice our concerns with the nation’s top elected leaders.” For more than 25 years, the conference has brought industry leaders to meet with members of Congress and Cabinet officials throughout the Administration. “From Bill Clinton to Joe Biden, every president’s administration has heard directly from produce leaders during this annual event,” says United Fresh CEO Tom Stenzel. The 2021 conference will once again include face-to-face Congressional meetings as permitted in September, as well as a series of online meetings that will follow the conference. The Washington conference also includes a Produce Advocacy Bootcamp for those attendees new to communicating with Congress, workshops detailing the most critical public policy issues facing the produce industry, general sessions with the nation’s top leaders, and networking opportunities throughout the industry.
| Rural Advocate News | Wednesday June 16, 2021 |
Washington Insider: US, EU Again Pause Aircraft Dispute The U.S. and European Union (EU) agreed to what was initially reported as a deal on the civilian aircraft dispute between the two over subsidies paid to Airbus in the EU and Boeing in the U.S. But as more details began to come out about the action, it appears a little more nuanced that just an outright trade deal. Recall that the two sides had already agreed to in March a four-month suspension of the tariffs totaling some $11 billion in total on products traded between the two countries. There had been little said leading up to the announcement early Tuesday morning other than the two sides were still "hopeful" that an agreement could be reached before the four-month tariff hiatus ended July 11. But the intensity picked up as President Joe Biden was poised to hold a summit with his EU counterpart, European Commission President Ursula van der Leyen, leading to the initial reports a deal was reached. Of course, many reports simply characterized the situation as one that was started by President Donald Trump and the tariffs the U.S. hit the EU with after winning their case against Airbus subsidies at the WTO. The two sides tried to negotiate a deal, but the U.S. forged ahead with retaliatory tariffs. But the dispute was not one that started under Trump. Rather it goes back some 17 years -- to 2004 under the Presidency of George W. Bush. And administration's since then have maintained the U.S. stance that the subsidies provided Airbus did not pass muster relative to EU commitments under WTO. That, of course, spawned a challenge by the EU of what they said were subsidies for the U.S. airplane maker Boeing. Both countries pursued the matters at the WTO and the trade body ruled both were in violation of their trade commitments. Under WTO rules after appeals are exhausted, if the trade situation is not remedied, then a country can take action against the other with the approval of the WTO. And that is where the Trump administration took the dispute. "Today's announcement resolves a long-standing trade irritant in the U.S.-Europe relationship," said U.S. Trade Representative Katherine Tai. "Instead of fighting with one of our closest allies, we are finally coming together against a common threat." That common threat? China. This has been the underlying focus for the Biden administration and the five-year suspension of tariffs agreed to with the EU sets the stage for more cooperation between the two on China. But on the aircraft dispute, the two agreed to an "understanding on a cooperative framework" that covers two pages and commits the two sides to approach funding and development of large civilian aircraft "on market terms." The also agreed that government research funds for new aircraft programs would be via an "open and transparent process." Any disputes between the two are to handled "though quiet bargaining in a new working group," according to the Washington Post. Tai called the deal "revolutionary" as it would allow them to focus on China's growth in the commercial aircraft market. But she also admitted that some of the details are yet to be worked out and will be sorted out over those next five years in the new working group. But before thinking that all is well between the U.S. and EU on the trade front, think again. There are still other disputes that remain, including ones on steel and metals tariffs imposed by the U.S. And that is a topic where countries have been negotiating for some five years without much progress to show. And there is the matter of digital taxes and border carbon taxes. On the latter, even Tai who declared the two sides would put away their "litigation briefcases" in the aircraft dispute, admitted that the U.S. would reserve its right to retaliate with tariffs if the EU imposed tariffs linked to carbon that the U.S. feels are discriminatory. So we will see. There is a five-year hiatus on tariffs between the two sides and a general document on the dispute that still has to be finished in the aircraft dispute. Given that there are other still unresolved issues like beef and GMOs with the EU, this aircraft dispute and coming negotiations on metals and digital taxes that need to be monitored very closely, Washington Insider believes.
| Rural Advocate News | Wednesday June 16, 2021 |
Senate Sets Vote On Biden's EPA Water Nominee Senate Majority Leader Chuck Schumer, D-N.Y., filed for cloture Tuesday to advance the nomination of Radhika Fox to be the EPA assistant administrator for water. The procedural move clears the way for a full Senate vote on Fox yet this week. If confirmed, Fox will take the helm of one of EPA's biggest departments. The Senate Environment and Public Works Committee approved Fox on May 26 by a 14-6 margin. Meanwhile, the Senate Monday by voice vote confirmed Michal Ilana Freedhoff to be EPA assistant administrator for toxic substances.
| Rural Advocate News | Wednesday June 16, 2021 |
Livestock Issues Key in Senate Hearing on USDA Budget Livestock market and pricing issues were among the top topics raised by members of the Senate Appropriations Agriculture Subcommittee Tuesday as USDA Secretary Tom Vilsack appeared to testify on the Fiscal Year (FY) 2022 budget request for the agency. The ranking Republican on the panel, Sen. John Hoeven, R-N.D., called for more pricing transparency and more competition in cattle markets in particular. Vilsack agreed on those issues, pointing to the recently released regulatory agenda where USDA said it would pursue rulemaking on the Packers & Stockyards Act. Vilsack said USDA efforts to bolster meat processing capacity should have positive knock-on effects. He signaled USDA would be coming forward with plans to boost processing capacity, saying, "I think you will see over the course of the summer that we have a pretty unique approach to this that I think will result in significant expansion of processing." Vilsack also said he supported the Meat Packing Special Investigator Act, that would create an "Office of the Special Investigator for Competition Matters" within the USDA's Packers and Stockyards Division. "I think it is a good proposal, I think it is part of what needs to be done," Vilsack said.
| Rural Advocate News | Wednesday June 16, 2021 |
Wednesday Watch List Markets The latest weather forecasts continue to get top attention from grain traders with increased rain chances expected next week. A report on May U.S. housing starts is due out at 7:30 a.m. CDT Wednesday, followed by the Energy Department's weekly report of energy inventories, including ethanol production at 9:30 a.m. The Federal Reserve concludes a two-day meeting Wednesday and offers its announcement at 1 p.m. CDT. Weather A frontal boundary moving through the Northern Plains will spark some isolated showers and thunderstorms there and into Minnesota Wednesday. A few isolated showers will be possible in the Plains, but heat and dryness should benefit winter wheat harvest.
| Rural Advocate News | Tuesday June 15, 2021 |
Biden Considering Relief for U.S. Refiners The White House is under pressure from labor unions and senators, including those from President Biden’s home state of Delaware, to consider relief for refiners from the biofuel blending mandates. Three sources close to the matter told Reuters that the issue is pitting two of the administration’s most important political constituencies against each other: blue-collar refinery workers and farmers who depend on biofuel mandates to give stability to corn markets. It may prompt a sharp turn in policy for the administration, which had been pulling back the Trump Administration’s expansion of waivers for U.S. refiners from the Renewable Fuel Standard. The credits, called RINs, are currently at their highest price in the 13-year history of the program. Refiners are saying the policy threatens to bankrupt fuel makers who are already hurt by plummeting fuel demand during COVID-19. Biofuel advocates say that fuel makers should have invested in biofuel blending facilities years ago and can pass on the added costs for buying credits. Democratic Senators from Delaware have met with Micheal Regan, head of the Environmental Protection Agency, in recent weeks to talk about providing relief to refiners. ********************************************************************************************** Bill Would Combat Anti-Competitive Practices in Meat Processing Industry Iowa Republican Senator Chuck Grassley joined fellow Republican Mike Rounds of South Dakota and Jon Tester, a Montana Democrat, in introducing legislation on meatpacking. The bill would address the anti-competitive practices in the meat and poultry industries that threaten the nation’s food supply and national security. The legislation comes on the heels of a recent ransomware attack on JBS, one of the country’s largest meat suppliers. “Increased consolidation is driving concerns about competitive market access for livestock producers,” Grassley says. “The recent cyberattack added to existing vulnerabilities in our food supply chain, underscoring the importance of protecting the livelihoods of our family farmers.” He also says food security is national security. The Senators’ bill, called the “Meat Packing Special Investigator Act,” would create the “Office of the Special Investigator for Competitive Matters” within the USDA’s Packers and Stockyards Division. The new investigator would oversee a team of investigators with subpoena power, dedicated to preventing and addressing anti-competitive practices in the meat and poultry industries and enforcing the nation’s antitrust laws. *********************************************************************************************** China Soybean Imports Boom as Hog Population Recovers Chinese soybean imports grew significantly during the first five months of 2021, which follows along with a recovery in the country’s domestic hog numbers. However, MSN says domestic demand for the crop looks more modest in the coming months because of rising soybean prices around the globe. China purchased 38.23 million tons of soybeans between January and May. The world’s biggest importer of soybeans spent $19.35 billion on the crop; 44 percent higher than the same period in 2020. As expected, the U.S. and Brazil were once again the top suppliers, with imports up from both countries during the same five months by almost 13 percent year-on-year. While the Phase One Trade Agreement with the U.S. has been one reason for the surge in imports, the recovery of China’s hog herd, devastated by African Swine Fever, is a key driver of the demand for soybeans. A senior animal protein analyst at Rabobank says the expectation of rapid hog restocking has been the key reason for strong imports but the food-service industry’s recovery from COVID-19 also supports Chinese imports. China’s spending on food imports, including grains and meat, is 33 percent higher than it was during the first five months of last year. ********************************************************************************************** USDA Begins Issuing Payments for 2018-2019 Disasters The USDA is set to begin issuing more than $1 billion in payments over the next several weeks, beginning on Tuesday, June 15. The funds are for agriculture producers with approved applications for the Quality Loss Adjustment (QLA) Program and producers who have already received payments through the Wildfire and Hurricane Indemnity Program Plus (WHIP+). Producers weathered significant natural disasters during 2018 and 2019, and the programs provide disaster assistance to those producers who suffered losses. For each crop year, the maximum amount that a person or legal entity may receive under the QLA program, directly or indirectly, is $125,000. Payments made to joint operations will not exceed $125,000, multiplied by the number of persons or legal entities that comprise the ownership of the joint operation. Producers who applied for and received their first WHIP+ payment can expect to receive the second payment beginning in mid-June for eligible crop losses. Any producers with questions can contact their local USDA Service Center. *********************************************************************************************** Colorado Lawmakers Approve Expanded Rights for Ag Workers Colorado lawmakers have approved a major expansion of rights for the state’s 40,000 agriculture workers. The Colorado Sun says the state’s governor, Jared Polis, is eager to sign off on the legislation. Colorado’s Senate Bill 87 gives farm workers the right to join labor unions, earn state minimum wage and overtime pay. Colorado’s Labor Peace Act currently exempts agriculture workers from job protections, such as the collective bargaining that’s available to workers in other industries. The bill eliminates that exemption and opens the door for agriculture workers to organize and join labor unions, engage in collective bargaining, and hold strikes. Mandated working conditions include periodic bathroom breaks, meals, and rest breaks. It also requires protections that will be determined by the Department of Labor and Employment regarding outdoor temperatures exceeding 80 degrees. The legislation limits the use of short-handled hoes while workers are stooped, kneeling, or squatting, and it limits when workers can be required to do hand weeding or thinning vegetation. It also requires rest breaks when they perform work like that. With COVID-19 in mind, the bill would also add special requirements for housing during a public health emergency. ********************************************************************************************** CURD Act Would Protect Cheese Quality Wisconsin Representative Ron Kind introduced the CURD Act last week. The “Codifying Useful Regulatory Definitions” (CURD) Act would create a formal definition of “natural cheese” to ensure consumers are fully informed when purchasing cheese. “America’s Dairyland is proud of the international award-winning, high-quality cheese,” he says. “We need to ensure customers have the information necessary to keep buying the quality Wisconsin cheese families have enjoyed for generations.” Kind also says that June Dairy Month is the perfect time to introduce the legislation to address the issue and make sure Wisconsin cheese can continue to be labeled as “natural cheese.” The term “natural cheese” is historically used to identify cheeses made directly from milk and distinguish those products from processed cheeses. It describes cheese that’s made from milk to which salt, enzymes, and flavorings can be added. It’s the result of the fermentation of milk by adding starter culture. Examples of natural cheeses include cheddar, swiss, cream, parmesan, and string. To help secure the future of Wisconsin Dairy, Kind also introduced his Family Farm Action Plan, which would support hardworking family farmers and help the state’s dairy industry work toward a brighter future.
| Rural Advocate News | Tuesday June 15, 2021 |
Washington Insider: Trouble at Lordstown Motors The former General Motors plant in Lordstown, Ohio, emerged as a potential star in the electric vehicle show. Lordstown Motors took over the plant with a plan to build electric pickups there, the Endurance. But high hopes that accompanied the effort have not been met. A prototype of the truck burned down in testing in February. Then last week reports surfaced that the company had told investors they had thousands of "pre-orders" for the truck, including from those companies that run big fleets. But the New York Times noted that a report in March from Hindenburg Research had resulted in a push "to bring these companies public well before they were ready and in many cases some of these companies will never be ready." To open this week, Lordstown's founder Steve Burns, and the company's chief financial officer, Julio Rodriguez, resigned. "An investigation by Sullivan & Cromwell, a law firm hired by a special committee of Lordstown's board, the results of which were disclosed on Monday, confirmed 'issues regarding the accuracy of certain statements regarding the company's pre-orders,'" the Times reported. Now the Securities and Exchange Commission is investigating the situation, including on a merger of the firm with DiamondPeak plus the sales orders. The company is expected to hold an event at its factory to tell investors and others about its pickup truck. But Lordstown is not the only startup in the electric vehicle world that has had problems. By contrast, there is Tesla that has gathered a global following for its electric cars. But the question that comes now is can these startups really survive or will be the electric vehicle market be dominated by automakers already in operation -- Ford recently demonstrated an electric version of its F-150 pickup to President Joe Biden. This still means that electric vehicles have a future in the U.S. automotive fleet. However, those seeking to "cash in" on the trend should take note of what has unfolded with Lordstown and others -- something that has applied to any business and that is you have to have a product to sell and one that buyers trust. That's what the challenge is ahead. And that doesn't even get into issues surrounding the range or battery charging times that still represent some of the biggest hurdles that companies seeking to broaden the electric vehicle market will have to address. Events like those with Lordstown suggest that perhaps the timeline for the electric vehicle to push the internal combustion engine out of favor with consumers is now further down the road. That probably is giving some relief to those in the biofuel sector as those fortunes are at least currently tied to motor fuel consumption. This means the challenge ahead for the biofuel industry will be to convince policy-makers and others that their fuel can be a big contributor to lowering emissions ahead of when electric vehicles reach a point of gaining that market share they need to truly make a difference on emissions. So we will see. Struggles by these startups are not unique to electric vehicles as there are always those who game the system. But the situation is still one that should be closely monitored, especially be a sector where corn and soyoil use in fuels is so important, Washington Insider believes.
| Rural Advocate News | Tuesday June 15, 2021 |
WOTUS Replacement Rule Remains Focal Point EPA Administrator Michael Regan said in a statement last week that the Trump administration's rollback of various water and wetlands protections is "leading to significant environmental degradation," and that the EPA will work with the Army Corps of Engineers to create new rules protecting ecosystems and providing safe drinking water. The announcement quickly brought accusations from Republicans that the Biden administration wants to reinstate Obama-era Waters of the U.S. (WOTUS) rule and potentially burden industries such as construction and agriculture in the process. The Wall Street Journal editorial page reacted harshly to the revision coming from the Biden administration. "EPA is preparing a private land grab that will limit farming, fracking, home building and economic activity… President Biden wants Congress to shovel out hundreds of billions of dollars for infrastructure, which the EPA then will tie up in a permitting morass--unless, of course, the projects advance climate or social-justice goals. Republicans shouldn't agree to any infrastructure deal that doesn't include permitting and regulatory efficiencies." But even EPA is not ready to commit to a timeline, their latest regulatory agenda listed the WOTUS replacement timing as "to be determined."
| Rural Advocate News | Tuesday June 15, 2021 |
RFS One Key in EPA Regulatory Agenda The Biden administration on Friday released the unified regulatory agenda, with several issues ahead on biofuels. The Environmental Protection Agency (EPA) plans to release its proposals for renewable fuel percentages under the Renewable Fuel Standard (RFS) in July 2021 and finalize the action in December, according to the unified regulatory agenda released by the Biden administration. As for the RFS levels for 2023 and beyond, the unified agenda noted that under the Clean Air Act, "EPA must set those volumes based on an analysis of factors specified in the statute. This rulemaking will establish volume requirements beginning in 2023." The timeline laid out for the action is for a notice of proposed rulemaking to be released in December 2021, with a final rule in December 2022. EPA noted that the legal deadline is for the action is required 14 months ahead of the first applicable year--2023. EPA also noted they are "required to modify, or reset," the applicable annual volume targets specified in the statute for future years if waivers of those volumes in past years met certain specified thresholds." While indicating those thresholds have been met, the agency said they are "considering proposing a rulemaking that would modify the applicable volumes targets for cellulosic biofuel, advanced biofuel, and total renewable fuel for future years." However, the timeline for that is listed as "to be determined." Regarding E15, EPA noted the notice of proposed rulemaking released in January by the Trump administration which proposed options to labeling of E15 fuel dispensers. "First, EPA proposed to modify the text and color of the E15 label," the agency noted. "Second, EPA proposed to remove the E15 label requirement entirely." The proposed reg also required future underground storage tank (UST) equipment to be compatible with higher blends of ethanol and provides additional options for demonstrating compatibility of existing UST systems with higher blends of ethanol. But as with the RFS reset, EPA indicate the timeline for the final rule is "to be determined."
| Rural Advocate News | Tuesday June 15, 2021 |
Tuesday Watch List Markets Reports on U.S. retail sales in May and the May producer price index are due out at 7:30 a.m. CDT Tuesday, followed by a report on May industrial production from the Federal Reserve at 8:15 a.m. Traders are staying close to the latest weather forecasts and USDA has not had a daily export sale announcement since May 27. Any news pertaining to U.S. biofuel policy will also get a lot of market attention. Weather Hot and dry conditions continue for a majority of the country on Tuesday. Some isolated showers will be possible in the Plains and temperatures will be closer to normal across eastern areas. Conditions favor continued winter wheat harvest but the drought continues to worsen for developing row crops across the north.
| Rural Advocate News | Monday June 14, 2021 |
USTR Tai heads to Brussels this week for European Negotiations U.S. Trade Representative Katherine Tai is in Europe this week for negotiations with her European counterparts. Tai says she will take part in “intense negotiations” to resolve the 16-year dispute over Boeing and Airbus subsidies and find a path forward on products like steel and aluminum. The talks will also give the U.S. and European Union a chance to champion the rights and interests of workers in those industries while also creating new standards to combat the harmful industrial policies of China and other countries that undermine the ability of other countries to compete. The ambassador says trade is essential to a functioning global economy, but it’s clear that past promises made to workers on trade were not kept. The consequences for workers who lost their jobs to unfairly traded imports created a “trust gap” with the public about free trade. Tai says based on conversations so far, she’s “optimistic that we will be successful.” Tai made her remarks last week during an AFL-CIO Town Hall. ********************************************************************************************** Judge Halts USDA Debt Relief Plan A Wisconsin federal judge ordered the USDA to at least temporarily stop $4 billion in loan debt relief payments intended for minority farmers. DTN says the move is in response to a lawsuit filed by white farmers who are not eligible for the same debt relief funds. That’s just one of five federal lawsuits filed against Ag Secretary Tom Vilsack to block USDA from paying off loans for minority farmers without also doing the same for white farmers. The temporary restraining order late last week keeps USDA from paying out any money to minority farmers while the U.S. District Court in eastern Wisconsin considers a more extensive preliminary injunction request filed by attorneys for 12 white farmers from nine states. An attorney for the Wisconsin Institute for Law and Liberty says, “the Court recognized that the federal government’s plan to allocate benefits based on race raises grave constitutional concerns and threatens our clients with irreparable harm.” A spokesman for USDA says the department disagrees with the judge’s decision but did confirm that the debt-relief program is on hold for now. ********************************************************************************************** USDA Working to Strengthen Enforcement of the Packers and Stockyards Act The USDA will begin work on three proposed rules to support the enforcement of the Packers and Stockyards Act. The 100-year-old law was originally designed to protect poultry farmers, hog producers, and cattle ranchers from unfair, deceptive, and anti-competitive practices in meat markets. USDA will take three actions related to rulemaking in the months ahead. First, USDA intends to propose a new rule that will provide greater clarity to strengthen enforcement against unfair and deceptive practices, undue preferences, and unjust prejudices. USDA will also propose a new poultry grower tournament system rule, with the current inactive proposal to be withdrawn. The agency will also re-propose a rule to clarify that parties do not need to demonstrate harm to competition to bring an action under Section 202 of the Act. “The pandemic and other recent events have revealed how concentration can take a painful toll on independent farmers and ranchers while exposing working family consumers to higher prices and uncertain output,” says Ag Secretary Tom Vilsack. “The Packers and Stockyards Act is 100 years old and needs to take into account modern market dynamics.” He says as the agency works to strengthen the resiliency of the country’s supply chains, enforcement of the Packers and Stockyards Act will be critically important. ********************************************************************************************** U.S. Farm Tractor Sales Drop in May Sales in the under-40 horsepower tractor category pulled total U.S. farm tractor sales negative, while all other segments and Canada continue strong growth. The latest data from the Association of Equipment Manufacturers shows that U.S. total farm tractor sales fell 3.9 percent in May compared to 2020, making it the first overall negative sales result in a year. U.S. self-propelled combine sales climbed a healthy 33.2 percent. Only the sub-40 horsepower segment saw a decline in year-over-year sales, dropping 8.9 percent, but that was enough to bring a negative result to total farm tractor unit sales. All other segments were positive, with the biggest gains in the articulated four-wheel-drive segment, up 62 percent to 253 units sold. The mid-sized 40-100 horsepower units were up 6.7 percent, and the 100-plus horsepower two-wheel-drive tractors were up 28 percent. Year-to-date farm tractor sales remain up 25.8 percent. In Canada, May monthly tractor and combine sales were positive through all segments, with the biggest growth in combine harvesters, up 166 percent to 109 units sold. “While the sub-40 segment fell a bit, they’re still up a strong 26 percent year-over-year to date,” says Curt Blades, Senior Vice President of Ag Services with AEM. *********************************************************************************************** NCBA Petitions to Change “Produced in USA” Label The National Cattlemen’s Beef Association petitioned the USDA’s Food Safety and Inspection Service to eliminate using “Product of the USA” labels for beef products. The Hagstrom Report says the NCBA wants to eliminate other broad U.S. origin labeling claims for beef and establish a “Processed in the USA” label instead. “The ‘Product of the USA’ label doesn’t meet the expectations of today’s consumers and disincentivizes the use of voluntary, source-verified claims that allow cattle and beef producers to more effectively distinguish their product in the marketplace,” says NCBA President Jerry Bohn. The headline on the NCBA news release says the move would “increase producer profitability.” Other groups have called for strict country-of-origin labels on meat which Congress passed but later rescinded after a World Trade Organization panel found the labels resulted in discrimination against Canadian and Mexican meat. The voluntary labels that NCBA supports represent investments made by producers to continually improve their products and meet consumer demand. “Marketing through source-verification will provide a more accurate and truthful description of the products,” Bohn adds, ‘which will reduce the potential for consumer confusion while increasing the ability of cattle producers to capture additional premiums for their product.” *********************************************************************************************** Food Import Costs Expected to Hit Record Levels in 2021 The costs of importing food are expected to reach record levels this year. The U.N. Food Agency says that will put intense pressure on the world’s poorest countries, whose economies have already been hit hard by COVID-19. Reuters says the high costs may continue for a long period as nearly all agricultural commodities have become more expensive in recent months, while a rally in energy markets could boost farmers’ production costs. The Food and Agriculture Organization says the problem is not that the world faces higher prices; the issue is vulnerable countries. The FAO’s Food Outlook report says the world’s food import bill will reach $1.71 trillion, up 12 percent from 2020. The FAO says nations classified as Low-Income Food-Deficit Countries are forecast to see their food import costs jump 20 percent this year. International aid organizations are already warning officials of rising numbers of malnourished people in the world as COVID-19 compounded food insecurity linked to conflict and poverty in states like Yemen and Nigeria. The FAO’s monthly food price index recently hit a 10-year high in May, including sharp rises for cereals, vegetable oils, and sugar.
| Rural Advocate News | Monday June 14, 2021 |
Washington Insider: Food labeling and Non-Dairy Products The issue of food labeling is one of those potential hot-button items when it comes to U.S. lawmakers. And that has not changed as was evidenced in a recent hearing on the Food and Drug Administration's Fiscal Year (FY) 2021 budget. And it is one that farm-state lawmakers, especially those from dairy states, have continued to focus on in the wake of the rise of plant-based food products that use terms like “milk” on the labels of the products. Acting FDA Commissioner Dr. Janet Woodcock was confronted by those issues during the hearing, with Sen. Tammy Baldwin, D-Wis., zeroing in on the topic as she questioned Woodcock. Baldwin has introduced a bill that would seek to require FDA to issue guidance for nationwide enforcement of mislabeled imitation dairy products within 90 days. “I'm sometimes dismayed that I even have to offer a measure like this,” she told Woodcock. “FDA does not enforce the regulations it has on the books. So, dairy farmers follow these rules, day in and day out in order to be able to honestly label their product as milk, or cheese, or yogurt. Yet a range of imitation dairy products have gotten away with using these dairy terms, even though they don't follow the agency's rules.” So her question to Woodcock focused on what the agency is doing to address what she says is a violation of FDA labeling requirements. “We are working on updated guidance that would make sure consumers understood,” Woodcock said. “We're particularly concerned about nutritional value. For example, calcium, vitamin D, protein. Some of these other products are not comparable and safe. They were fed to a young child or infant, they wouldn't be getting what the consumer, the mother or parent thought the child was getting.” But Woodcock was able to offering little other assurance to Baldwin except to say FDA “will try to get that as soon as possible.” Sen. John Hoeven, R-N.D., delved into the issue of plant-based proteins and labeling on those products. Hoeven put his attention on the fact that USDA is in charge of labeling on animal products. “If there's animal terminology or imagery used, and of course, and on the animal side, we want USDA doing -- driving labeling,” he commented. “We understand you to have it in the Food and Drug side, from the plant and drug side. But, you know, how do you prevent misleading labeling for these products?” “We have to establish clear standards, and we work very closely with USDA on these issues to make sure they have labeling principles and so forth to make sure that that those are out there and people understand them,” Woodcock replied. “So some is education, some is enforcement to make sure that if things are mislabeled that, that we provide feedback to companies.” Noting the confusion that unfolds with a beef product and a similarly named plant-based product, Hoeven noted, including for both the consumer but also livestock producer. “I would say on the plant side, there are many people who want to make sure they're eating a plant product, too,” Woodcock observed. “So these need to be very labeled very clearly which one they are so that people are not misled.” So we will see. The issue of things like common food names being applied to similar plant-based products has long been a focal point for the U.S. dairy and other sectors. And as these alternatives continue to grow, it is an issue that needs to be monitored closely, Washington Insider believes.
| Rural Advocate News | Monday June 14, 2021 |
NCBA Petition USDA To Eliminate 'Product of The USA' Labels The National Cattlemen's Beef Association (NCBA) has filed a petition with USDA's Food Safety and Inspection Service (FSIS) to eliminate the use of “Product of the USA” and other broad U.S. origin labeling claims for beef products that are potentially misleading to consumers. The group said they view the current “Product of the USA” as not providing a service to consumers as it is not based on any verification program, food safety standard and it does not deliver value back to the cattle producer. NCBA believes that current “Product of the USA” labels are “a disservice to American consumers and cattle producers alike,” the group said. The group pointed out that imported products can be labeled as a “Product of the USA” if they have been minimally processed or repackaged in a USDA-inspected facility. “The Product of the USA label does not meet the expectations of today's consumers and disincentivizes the use of voluntary, source-verified claims that allow cattle and beef producers to more effectively distinguish their product in the marketplace,” said NCBA President Jerry Bohn. “There is a growing desire among consumers to know more about the origin of the food they purchase, and it is critical that producers are empowered with opportunities to market their high-quality beef in a way that allows them to differentiate the source of their product from competitors and potentially increase profitability.” NCBA said they support voluntary efforts that allow cattlemen to get more value of their product via origin labels, marketing initiatives that are voluntary and source-verified. NCBA is advocating for a more appropriate generic label, such as “Processed in the USA." The group said they want to work with USDA's Agricultural Marketing Service (AMS) to educate stakeholders in the industry to develop voluntary, verifiable origin marketing claims that deliver benefits to producers but do not violate U.S. trade commitments.
| Rural Advocate News | Monday June 14, 2021 |
USDA Requiring Farmers To Resubmit CRP Offers USDA earlier this year announced it had reviewed the Conservation Reserve Program (CRP) and put in place higher rental payments, new incentives and more focus on climate change. Given those changes, USDA has now deleted all offers submitted under the continuous CRP signup (Signup 55) and the general CRP signup (Signup 56). USDA said there will be a one-time 10% “inflationary” adjustment for the life of the CRP contract which will be factored into Soil Rental Rates (SRRs). As for the Climate-Smart Practice Incentive effort, USDA said the incentives will be 10% for woody biomass, 5% for grass and legumes and 3% for grass cover types. USDA also said that State Acres for Wildlife Enhancement (SAFE) practices are being moved from the general CRP signup to the continuous signup. CRP offers can be resubmitted starting June 14 with a deadline of July 23 for offers under the general signup and August 6 for the continuous signup. Contracts are to start October 1 for the general signup and for continuous signup offers for re-enrolled or a combination of re-enrolled and new acres. For offers on new acres only under the continuous signup, contracts start the first of the month after the month that the offer has been approved. Those submitting offers under CRP previously will be getting letters advising them of the new signup
| Rural Advocate News | Monday June 14, 2021 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts in search of any change in what has been a generally dry weather pattern for the central U.S. USDA's weekly grain export inspections report is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Crop condition ratings will get the most attention, along with winter wheat harvest progress. Weather Dry conditions that occurred over the weekend mostly follow for Monday. There will be some isolated showers across the Plains, eastern Midwest, and Southeast, but amounts look mostly light. Meanwhile, hot temperatures are expected again across most of the country, continuing stress for developing row crops in the drier areas. Conditions continue to favor the winter wheat harvest.
| Rural Advocate News | Friday June 11, 2021 |
Minor Changes in June WASDE Report The June World Agriculture Supply and Demand Report offers minor changes from last month. This month's corn outlook is for reduced beginning and ending stocks. Beginning stocks are down 150 million bushels reflecting projected increases in corn used for ethanol and exports. Corn used for ethanol increased 75 million bushels, and weekly ethanol production data indicates demand is almost back to levels seen before COVID-19. The season-average farm price received by producers is unchanged at $5.70 per bushel. This month’s U.S. soybean supply and use projections include higher beginning and ending stocks. With higher soybean beginning stocks and no use changes, ending stocks are projected at 155 million bushels, up 15 million from last month. The season-average soybean price is unchanged at $13.85 per bushel. Finally, the outlook for wheat this month is for larger supplies, higher domestic use, unchanged exports, and slightly lower stocks. The projected price is unchanged at $6.50 per bushel, compared to $5.05 for last year. *********************************************************************************** Ag Groups Ready to Defend WOTUS Farm groups are ready to defend the Navigable Waters Protection rule after the Environmental Protection Agency announced intent to repeal and rewrite the rule. The National Cattlemen’s Beef Association and Public Lands Council, in a joint statement, say, “The NWPR was an immense step forward in rectifying the egregious overreach of the 2015 rule.” NCBA Executive Director of Natural Resources and PLC Executive Director Kaitlynn Glover says, “Livestock producers, who manage both their private lands and safeguard public lands, have a deep-seated commitment to protecting and improving our waterways — which is why it is so deeply frustrating when EPA opts for government overreach instead of effective, proven public-private partnerships.” NCBA and PLC were instrumental in the repeal of the 2015 WOTUS rule and are currently engaged in litigation to defend the NWPR. American Farm Bureau Federation President Zippy Duvall states, “We expected extensive outreach, but the announcement fails to recognize the concerns of farmers and ranchers.” *********************************************************************************** JBS Paid Hackers $11 Million JBS paid $11 million to the hackers behind a ransomware attack late last month. In a press release this week, the company confirmed the payment. At the time of payment, most of the company's facilities were operational. However, in consultation with internal IT professionals and third-party cybersecurity experts, the company decided to mitigate any unforeseen issues related to the attack and ensure no data was exfiltrated. JBS USA leadership states, “the payment will “prevent any potential risk for our customers.” The hacker group REvil initiated the cyberattack that shut down JBS packing plants for at least a day. Upon learning of the intrusion, the company contacted federal officials and activated its cybersecurity protocols, including voluntarily shutting down all its systems to isolate the intrusion, limit potential infection and preserve core systems. The company is not aware of any evidence that any customer, supplier or employee data has been compromised or misused as a result of the situation. *********************************************************************************** Major U.S. Ag Groups Call for Bipartisan Infrastructure Package Leading U.S. agriculture groups call for lawmakers to come together on a bipartisan infrastructure package. Led by Farmers for Free Trade, a letter to lawmakers includes support from every step of the U.S. supply chain. The letter comes as negotiations among a bipartisan group of Senators accelerate and Congressional leaders weigh the path forward for infrastructure investments. The letter states, “American agriculture depends on access to new foreign and domestic markets, and that access depends on reliable infrastructure.” Further, the letter states, “We ask all members of the 117th Congress to recognize the importance of infrastructure to the health of the nation’s food and agricultural economy.” The letter focuses on the economic importance of agricultural trade, the importance of infrastructure for ag supply chains and exports, how infrastructure spending will support ag and rural jobs, current deficiencies in ag infrastructure, the benefits of investing in rural broadband and the importance of passing an infrastructure package to compete globally. ************************************************************************************ Canadian Developer Confirms Cancellation of Keystone XL Pipeline TC Energy Corporation, the developer behind the Keystone XL Pipeline in Canada, confirmed the cancellation of the project this week. Construction activities to advance the project were suspended following an executive order by President Joe Biden on his first day in office. The company will continue to coordinate with regulators and stakeholders to meet its environmental and regulatory commitments and ensure a safe exit from the project. TC Energy's CEO states, "We remain grateful to the many organizations that supported the project and would have shared in its benefits.” House Energy and Commerce Committee Energy Subcommittee Republican Leader Fred Upton, a Michigan Republican, states, “Now Keystone XL is officially dead and President Biden’s radical decision is proving to be disastrous for American workers and their families.” However, Environmental Natural Resources Defense Council spokesperson Anthony Swift says, “Keystone XL was a terrible idea from the start,” adding, “It‘s time to accelerate our transition to the clean energy sources that will power a prosperous future.” ************************************************************************************ Organic Valley Hits Record $1.2 Billion in Sales Organic Valley this week announced the company has recorded sales of $1.2 billion for the year ending 2020. With industries in chaos and conventional dairy markets forced to dump milk amid the pandemic, Organic Valley says it “held a stable pay price for its family farms, improved financials, and grew a steady demand for organic milk and dairy.” As more people chose to cook healthy food from home in 2020, Organic Valley experienced consolidated sales growth of 4.5 percent. In addition, an increase in conscious shopping choices by individuals across the country helped the cooperative uphold a stable pay price for its organic family farms. By driving net income, reducing debt, holding pay price, and returning dollars to farmers, Organic Valley made considerable progress in 2020 that will support a long-term future for organic family farms. Compared to 2019, the nation’s largest organic farmer-owned cooperative improved consolidated net income by $48.4 million in 2020.
| Rural Advocate News | Friday June 11, 2021 |
Washington Insider: Inflation Worries Continue to Build U.S. consumers saw the highest rate of inflation on an annualized basis was up 5% from year-ago levels in May, according to the Consumer Price Index (CPI) released by the U.S. Labor Department, the biggest rise in prices in 13 years -- since 2008. Taking food and energy out of the mix as those typically are two of the most volatile price components, the “core” rate was up 3.8% from this point in 2020, the biggest jump since 1992. On a monthly basis, inflation rose 0.6%. One component of the price rise? Used cars and trucks. Those prices were up a whopping 7.3% from April and were one-third of the increase that was registered. A shortage of new vehicles due to a lack of computer chips has consumers turning to the used car market in a big way, prompting car dealers to urge consumers to upgrade their ride. But part of the big increases from year-ago levels is that we're still seeing some of the pressures from the pandemic as bars and restaurants shut down or had very limited operations. The Wall Street Journal notes that situation from May and June last year is called the “base effect.” But the figures immediately rekindled or reawakened the debate over inflation. That has been going on for the past few months and some have declared that this month's data is more evidence that inflationary pressures are building. That is prompting more analysts to think this will result in Fed officials needing to move quicker than they have signaled on monetary policy. The food portion of the component is starting to also manifest itself in higher prices at the grocery store. Indeed, data has been showing prices are rising, but USDA is still not raising its forecasts for overall food prices, grocery store or restaurant prices this year. They still see food price inflation running at or below the 20-year average. But market participants have become more and more convinced that the data on inflation is going to have the Fed start talking about tapering its bond purchases which have been going off at a clip of $120 billion per month. Fed Chairman Jerome Powell has dismissed the concerns, saying the Fed believes inflation pressures are “transitory” and that it is “not time to start talking about talking about tapering” those bond purchases. That is a question he has been asked after every Fed rate setting meeting since early this year. Markets mostly took the inflation data in stride. And that is likely due in part to the fact that there are no Fed officials offering comments this week. Last Saturday (June 5) marked the start of the so-called “blackout” period ahead of the Federal Open Market Committee (FOMC) meeting that concludes June 16. While no Fed officials were scheduled to speak this week, their comments could not go into the current state of the economy or monetary policy. So markets have been left to their own devices this week and will again be on their own when wholesale inflation data comes out next week. As if there were Fed officials commenting or sounding alarm, that might have spooked markets into expecting higher rates coming sooner than expected. But this will still be the focal point when the Fed meeting wraps up on June 16 and Powell again meets with reporters. If he admits that now is the time for the U.S. central bank to start talking about trimming those bond buys, that will be taken as a sign the move could come very quickly. Not everyone is convinced as of yet. Julia Coronado, a former Fed economist and president of MacroPolicy Perspectives LLC, told the Journal she doesn't think recent inflation data call for the Fed to change course. “These price pressures are very narrowly focused on things that seem like they will be obviously transitory,” Coronado said. “Think about this: We are at the most intense moment. It will not get more intense than this. We are reopening. We are blasting stimulus into the economy with a fire hose. We've got monetary policy at maximum stimulation.” She does have a point. And Fed officials have repeatedly signaled they are willing to let inflation run above their 2% target “for some time,” a period of time they have not and will not define. So we will see. If the Fed next week indicates it is time to start talking about tapering those bond purchases, that will start building expectations that interest rates too will be on the rise, and that will be a situation that will need to be watched closely as it means the cost of borrowing money will be on the rise too, Washington Insider believes.
| Rural Advocate News | Friday June 11, 2021 |
Dairy Donation Program Getting Closer USDA has sent an interim final rule for the Dairy Donation Program (DDP) to the Office of Management and Budget (OMB) for review. USDA offered up general guidelines for the program in April based on provisions in the Consolidated Appropriations Act of 2021 that created the DDP. The program will require that a donation and distribution plan must be submitted to and approved by USDA and the reimbursement will be at least equivalent to the minimum classified value of milk used to make the donated product on the date of manufacturing. The program will also require records related to donating and receiving products must be maintained and available for review and/or audit. Eligibility for the program is open to dairy farmer cooperatives and processors who “account to” a Federal milk marketing order (FMMO) and donate dairy products to any private or public nonprofit food distribution entity. The program will also allow for retroactive reimbursements back to December 27, 2020, when the legislation was signed into law. The rule at OMB will contain more details on that reimbursement rate. The dairy industry has been awaiting the DDP effort, particularly in the wake of the Biden administration ending the popular Food Box program which included dairy products provided to recipients and fostered additional demand for U.S. dairy products.
| Rural Advocate News | Friday June 11, 2021 |
NPPC Takes Aim At Line Speed Issue At Pork Plants The National Pork Producers Council (NPPC) is focusing major attention on the March 31 ruling by U.S. District Judge Joan Ericksen vacating portions of USDA's New Swine Inspection System (NSIS) rule that allow qualified pork processing plants to run at line speeds above 1,106 head per hour. NPPC officials told reporters Wednesday if the ruling is not appealed and takes effect at month's end, line speeds at the six affected plants would slow by as much as 25% and reduce overall U.S. pork harvest capacity by 2.5%. The group cited data from Iowa State University Ag Economist Dermott Hayes that found the reduced line speeds will cost hog farmers over $80 million in lost revenue during 2021 alone. USDA Secretary Tom Vilsack this week suggested the call for appeal lies with the U.S. Solicitor General and said the case has put the department in an uncomfortable position. NPPC Vice President and Counsel of Global Government Affairs Nick Giordano said the administration's push to bolster supply chains -- including efforts to boost processing capacity at meat plants and support small producers -- is at odds with any decision not to appeal the ruling. “If this thing is unchecked, it is going to disproportionately hurt small producers,” he stressed. “Didn't we just this week have a supply chain initiative announcement? The point: to add capacity.” If allowed to take effect, he said, the ruling will give more market power to meatpackers and hurt producers. Giordano also stressed that the ruling would upend nearly 25 years of operation at higher line speeds for five of the affected plants, which have been enrolled in a pilot program allowing them to operate at current levels since the 1990s. He also pushed back on the assertion by labor unions, who brought the line speed challenge, that removing the limits negatively impacts worker safety. “The data, in fact, don't suggest higher levels of worker injury,” he said. “They suggest lower level of worker injuries at these plants.” The industry is clearly pushing the administration to challenge the court decision, but Vilsack's comments Tuesday gave no indication that would be the case.
| Rural Advocate News | Friday June 11, 2021 |
Friday Watch List Markets USDA still has not had a daily export sale announcement in June and the next chance will come at 8 a.m. CDT. The early version of University of Michigan's consumer sentiment index for June is due out at 9 a.m. CDT and is the only official report on Friday's docket. Even so, traders have their hands full keeping up with the latest weather forecasts and digesting Thursday's new estimates from USDA. Weather A line of strong-to-severe storms was moving from the Dakotas and central Nebraska eastward early Friday morning. Models suggest that this line will weaken in the morning as it moves into Minnesota and Iowa, but the southern flank may continue over eastern Nebraska and move south into Kansas later in the day. Scattered thunderstorms are likely to redevelop over the western Midwest later in the day, but not to the strength we saw last night in the Northern Plains, where there were many strong wind reports. A brief cooldown is expected over the northwestern Plains as a front moves through, reducing heat stress for a day or two before temperatures rise next week.
| Rural Advocate News | Thursday June 10, 2021 |
EPA Announces Intent to Revise Definition of WOTUS The Biden administration's Environmental Protection Agency plans to repeal and rewrite the definition of water of the United States, or WOTUS. The EPA announced Wednesday it will repeal the Trump-era Navigable Waters Protection Rule, which replaced the Obama-era Waters of the U.S. rule. EPA Administrator Michael Regan states, “the EPA and Department of the Army have determined that this rule is leading to significant environmental degradation.” A review of the rule requested by President Joe Biden claims stakeholders are seeing destructive impacts to critical water bodies. The Department of Justice Wednesday filled a motion requesting remand of the rule without vacating it. The EPA, along with the Army Corps of Engineers, say they will rework the rule to protect water resources and communities consistent with the Clean Water Act. The agencies say the new rule will reflect input from landowners, agriculture, and state and local governments, along with environmental groups. *********************************************************************************** Ag Coalition Calls for More Ag Research Funding A coalition of agriculture groups and universities calls on Congress and the Biden administration to increase funding for agricultural research. The groups say an increase of $40 billion is needed for agricultural research. In separate letters to President Joe Biden and House and Senate leadership, the groups say, “We strongly support a robust investment of at least $40 billion, for agricultural climate research, agricultural innovation, and agricultural research infrastructure in any comprehensive infrastructure package moving forward.” The coalition says that research makes the food and agriculture sectors a powerhouse of the U.S. economy by providing solutions to short- and long-term challenges. A recent study found U.S. public food and agriculture R&D spending from 1910 to 2007 returned, on average, $17 in benefits for every $1 invested. The federal share of overall R&D spending as a percentage of GDP is now at its lowest point since the 1950s, and food and agriculture lags behind most other federal R&D areas. *********************************************************************************** U.S. Dairy Industry’s Economic Impact Totals $753 Billion The U.S. dairy industry continues to play a strong role in the U.S., supporting 3.3 million total jobs and $41.6 billion in direct wages. The International Dairy Foods Association released the findings in an economic impact report this week. IDFA’s 2021 Economic Impact Study, which measures the combined impact of the dairy products industry, showed the U.S. dairy industry’s economic impact totaled $752.9 billion. IDFA President and CEO Michael Dykes says, "American dairy companies contribute significantly to the U.S. economy, and their impact continues to grow year after year." The newly released figures indicate the U.S. dairy industry now contributes 3.5 percent of U.S. GDP, and $67.1 billion in federal, State and local taxes. For the first time, the total value of exports was included in the study, revealing the U.S. dairy industry is responsible for a total of $6.5 billion in exported goods and reinforces the importance of fair international trade agreements for the industry. *********************************************************************************** World Pork Expo Showcases Top Pork Priorities World Pork Expo this week brings a highlight of pork industry priorities. National Pork Producers Council President Jen Sorenson says, “After a two-year absence, we’re thrilled for the return of Work Pork Expo, showcasing the latest developments in the U.S. pork industry.” The event last year was canceled because of the coronavirus pandemic and the year prior over African swine fever concerns. NPPC is using the event to focus on the organization’s priorities in 2021. Those include the federal district court ruling striking down faster harvest facility line speeds. Additionally, NPPC is challenging California's Proposition 12. Set to go into effect next year, it will impose arbitrary animal housing standards that reach far outside the State's borders, while driving up costs for pork producers and consumers. Other near-term priorities for pork producers include expanding export markets, addressing agriculture labor reform, and advocating for measures to ensure foreign agriculture diseases remain outside the country. ************************************************************************************ Meat Institute: California Prop 12 Not Beneficial to Consumers The North American Meat Institute says California's Proposition 12 provides no benefit to consumers and increases breeding sow mortality according to the State's own proposed rule. The California Department of Food and Agriculture released the proposed rule, originally due in September 2019, late last month. The Meat Institute has filed a reply brief recently to its petition to the U.S. Supreme Court. Julie Anna Potts, President and CEO of the Meat Institute, states, "Our petition to challenge the law has the support of more than 20 states." The question is whether the U.S. Constitution permits California to extend its power beyond its territorial borders by banning the sale of pork and veal products sold into California unless out-of-state farmers restructure their facilities to meet animal-confinement standards dictated by California. The Meat Institute says allowing the law to stand "insulates in-state farmers from out-of-state competition, while imposing crushing burdens on out-of-state farmers." ************************************************************************************ Growth Energy Applauds Nevada’s Move to E15 Nevada’s Governor over the weekend signed a law requiring the Nevada Board of Agriculture to approve E15 as part of any fuel regulation adopted by July 1, 2021. Growth Energy responded to the news Wednesday, as CEO Emily Skor says, “We’re looking forward to working with retailers across the state to add E15 to their fuel offerings, so Nevadans have greater access to a liquid fuel that reduces their carbon emissions.” A study by Air Improvement Resource, Inc. showed that switching from E10 gasoline to E15 across Nevada could reduce greenhouse gas emissions by 148,000 metric tons annually – the equivalent of removing more than 32,000 vehicles from Nevada roads. Once the regulation is finalized, Nevada would be the 47th State to approve E15 for consumers. E15, marketed to consumers as Unleaded 88, is offered at over 2,440 retail sites in 30 states and 230 terminals. Consumers have driven over 21 billion miles on E15 to date.
| Rural Advocate News | Thursday June 10, 2021 |
Washington Insider: Another Water Rule Coming EPA and the U.S. Army Corps of Engineers will once again seek to come up with a definition of waters of the U.S. (WOTUS) that will replace the Navigable Waters Protection Rule put in place by the Trump administration. But the effort also will not bring back the Obama-era WOTUS rule that was put in place in 2015. EPA said it will embark on a new rulemaking to generate the new rule after undertaking a review of the Trump-era rule. That review, EPA said, indicated it was causing “destructive impacts” to “critical water bodies.” The new regulatory effort, EPA said, would be built on protecting water resources consistent with the Clean Water Act, use the latest science and consider effects of climate change, create a rule that can be practically implemented, and reflects the “experience of and input received from landowners, the agricultural community that fuels and feeds the world, states, Tribes, local governments, community organizations, environmental groups, and disadvantaged communities with environmental justice concerns.” EPA has pledged there will be “meaningful stakeholder engagements” to develop the new rule, which would mean listening sessions or public hearings to generate information for the agency to draft the new regulation. The fact that we are seeing yet again another regulatory process coming on this topic is from an executive order signed by President Joe Bident his first day in office which directed the EPA and Army “to immediately review and, as appropriate and consistent with applicable law, take action to address the promulgation of Federal regulations [including the Navigable Waters Protection Rule or “NWPR”] and other actions during the last four years that conflict with these important national objectives.” While touting the review of the NWPR, EPA did not offer much as to that review. They did note that the NWPR did result in several bodies of water in New Mexico and Arizona no longer being subject to the Clean Water Act provisions and that some 300 projects that were conducted after the Trump rule went into effect were ones that would have required some type of permitting or plan under the 2015 WOTUS rule. “After reviewing the Navigable Waters Protection Rule as directed by President Biden, the EPA and Department of the Army have determined that this rule is leading to significant environmental degradation,” said EPA Administrator Michael Regan. “We are committed to establishing a durable definition of 'waters of the United States' based on Supreme Court precedent and drawing from the lessons learned from the current and previous regulations, as well as input from a wide array of stakeholders, so we can better protect our nation's waters, foster economic growth, and support thriving communities.” But therein lies perhaps EPA's most difficult task -- a durable rule. Presumably, the are likely intending that the rule they finalize after a rulemaking process will not be challenged in court as both the WOTUS and NWPR were. That will prove to be a tall order for EPA and the U.S. Army Corps of Engineers. But the replacement for the Trump-era rule will not come immediately. EPA has indicated they will initiate a new rulemaking process. That means we will first see public information gathering done either via public meetings or a request for information via a notice in the Federal Register. Then will come the process of developing a notice of proposed rulemaking that will also have a public comment period. It will have to first be reviewed by the Office of Management and Budget (OMB) as well. Then will be the process of developing a final rule based on the input and feedback to the proposed version. Then another OMB review will be done before a final rule will be promulgated. In all, that process could take several years. And even then, expectations are already that whatever that final rule is, there will be court challenges that will come forth. So we will see. EPA clearly has their work cut out for them to develop a rule that is in their words “durable.” But it will also have to pass muster with the ag community, a constituency that fought the Obama-era plan and so this whole process will need to be watched closely, Washington Insider believes.
| Rural Advocate News | Thursday June 10, 2021 |
Agriculture Bucked Overall Trade Trend In April While U.S. exports in general gained against imports during April, trimming the overall U.S. trade deficit compared with March, U.S. agricultural exports declined in April to $14.5 billion from $15.3 billion in March. Imports, however, held nearly steady at $14.4 billion after being at $14.6 billion in March. That left agriculture with a surplus of $189 million, down from $774 million in March. That brings cumulative U.S. agricultural exports so far in Fiscal Year (FY) 2021 to $107 billion against imports of $91 billion for a surplus of $15.7 billion. For FY 2021, USDA forecasts U.S. agricultural exports to total $164 billion against imports of $141.8 and result in a surplus of $22.2 billion. If USDA's forecast is on the mark, U.S. agricultural exports would have to average just $11.4 billion for the five remaining months of FY 2021 and imports $10.1 billion. A decline of that degree imports would be somewhat surprising since the value of imports has not been that small since September 2017 while U.S. agricultural exports were under $11 billion for the April-July period in 2020.
| Rural Advocate News | Thursday June 10, 2021 |
Vilsack Says No Decision Yet On Appealing Pork Line Speed Decision USDA has been warning the six hog slaughter plants affected by a U.S. District Court ruling that they should prepare to revert to their old speeds of 1,106 animals per hour at the end of this month. But USDA Secretary Tom Vilsack told reporters Tuesday that no decision has been made yet by the Department of Justice (DOJ) on whether to appeal a federal district court ruling that struck down a Trump-era rule allowing unlimited line speeds at certain pork processing facilities. The ruling is set to take effect June 29, with USDA announcing last month it would enforce the decision. Vilsack explained that the six facilities that had been allowed unlimited line speeds under the New Swine Inspection System (NSIS) rule “will have to decide whether or not they want to go back to the 1,106 [head per hour] line speed, or whether they want to make adjustments in terms of adding additional hours, or additional workdays to be able to process the same number of animals that they [currently] process during the course of a day.” He lamented that the case put the department “in a very difficult position,” forced to balance worker safety, food safety and farmer income interests. “Frankly, I don't think USDA should be put in that position,” he remarked, saying his hope is that parties in the case “will figure out a way to move forward with this.” As for an appeal, Vilsack stressed that the decision rests with the Solicitor General at DOJ, not USDA, adding that the ruling itself does not become final until months' end.
| Rural Advocate News | Thursday June 10, 2021 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. jobless claims and update of the U.S. Drought Monitor are due out at 7:30 a.m. CDT. The U.S. Labor Department will also have the May consumer price index ready at 7:30 a.m. CDT, a number that will be closely watched by outside markets. The U.S. Energy Department releases natural gas inventory at 9:30 a.m. The latest weather forecasts remain at the top of grain traders' attention Thursday and will probably still dominate prices after USDA's WASDE and Crop Production reports are released at 11 a.m. CDT. At 1 p.m., the U.S. Treasury presents the federal budget for May. Weather Strong thunderstorms are forecast to develop late Thursday afternoon and evening across the Northern Plains. Organized clusters and lines of storms will threaten the area with wind, hail, and tornado threats, but will likely produce widespread moderate rainfall amounts in the severe drought areas. This will be highly beneficial for developing row crops where damage does not occur. Elsewhere, scattered showers will continue from the Great Lakes down to the Gulf of Mexico with some heavy rains yet in the central Delta region.
| Rural Advocate News | Wednesday June 9, 2021 |
White House Task Force to Examine Supply Chain Disruptions The White House Tuesday announced a task force focused on short-term supply chain disruptions. Agriculture Secretary Tom Vilsack was named co-chair of the task force, along with the Secretaries of Commerce and Transportation. The Department of Agriculture says the task force will convene stakeholders to diagnose problems and find solutions that could help alleviate bottlenecks and supply constraints related to the economy’s reopening. Specifically, it will focus on areas where a mismatch between supply and demand has been evident, including homebuilding and construction, semiconductors, transportation, and agriculture and food. The White House also released key findings from a review stemming from a supply chain focused executive order. The 100-day study focuses on semiconductors, batteries for electric vehicles, critical minerals and materials and pharmaceuticals. The Interior Department and USDA, along with the Environmental Protection Agency, will also establish a working group. The group will identify sites where critical minerals could be produced and processed in the United States. *********************************************************************************** USDA to Invest $4 Billion to Strengthen Food Systems The Department of Agriculture Tuesday announced plans to invest more than $4 billion to strengthen critical supply chains through the Build Back Better initiative. USDA says the funding stems from lessons learned from the COVID-19 pandemic and recent supply chain disruptions. The new effort will strengthen the food system, create new market opportunities, tackle climate change, and support jobs throughout the supply chain, according to USDA. Agriculture Secretary Tom Vilsack states, "I am confident USDA's investments will spur billions more in leveraged funding from the private sector and others as this initiative gains traction across the country." Funding is provided by the American Rescue Plan Act and earlier pandemic assistance, such as the Consolidated Appropriations Act of 2021. USDA says recent events have exposed the immediate need for action. With attention to competition and investments in additional small- and medium-sized meat processing capacity, the effort will spur economic opportunity while increasing resilience and certainty for producers and consumers. *********************************************************************************** Additional Cattle Markets Legislation Introduced in U.S. House The Optimizing the Cattle Market Act of 2021 introduced in the House of Representatives Tuesday seeks to change cattle market dynamics. Introduced by Missouri Republican Representative Vicky Hartzler, the legislation would direct the Agriculture Department to create a cattle formula contracts library, and increase the reporting window for "cattle committed" from seven to 14 days. The measures, according to the National Cattlemen’s Beef Association, would increase transparency in the industry and improve the opportunity for robust price discovery. The legislation also reiterates the need for expedited reauthorization of USDA's Livestock Mandatory Reporting program. NCBA Vice President of Government Affairs Ethan Lane states, “Something needs to give,” referencing market volatility and a shifting regulatory landscape. The use of formulas and grids help producers manage risk and capture more value for their product, but depend upon price discovery that occurs in negotiated transactions. Current research has shown that more negotiated trade is needed to achieve “robust” price discovery within the industry. ************************************************************************************ Prairie-Chicken Listing Threatens Wind Farms A proposal to list the lesser prairie chicken as endangered in parts of Texas and New Mexico is drawing concerns beyond agriculture. The listing could create problems to oil and gas development in the largest U.S. petroleum basin and be problematic for wind power. The U.S. Fish and Wildlife Service announced the proposal last month for areas in Texas, New Mexico and Southwest Kansas. Bloomberg Law reports the Fish and Wildlife Service is considering a possible mile-wide zone around each wind turbine the agency would assume the bird could no longer live. The Texas Panhandle is one of the country’s most productive regions for wind energy. The wind power industry believes wind turbines don’t severely harm the lesser prairie-chicken. The bird previously was listed as threatened under the ESA. However, a federal judge tossed out the listing in 2015 after finding the Fish and Wildlife Service didn’t account for the oil industry’s voluntary efforts to protect the bird’s habitat. ************************************************************************************ Upper Midwest Farm Credit Associations Exploring Merger The Board of Directors from two Farm Credit associations in the upper Midwest have signed a memorandum of understanding for a proposed merger. AgCountry Farm Credit Services, based in Fargo, North Dakota, and Farm Credit Services of North Dakota, based in Minot, North Dakota, are currently assessing the benefits of a merger for stockholders and finalizing the terms of the merger agreement. The two organizations say the merging of two Farm Credit organizations does not reduce competition as each association serves a specific territory in which they do not presently compete. The objectives of the proposed merger include expanded service offerings, ongoing strong commitment to local communities, increased innovation, improved long-term operating efficiencies, and ultimately, increased value and customer experience for the combined customers/member-owners. In pursuing these objectives, the associations do not anticipate any changes in branch locations or branch staffing due to the proposed merger. The earliest effective merger date would be January 1, 2022. ************************************************************************************ SNAP, P-EBT Accounted for More Than 1/9 of Total Food-At-Home Spending Shutdowns, stay-at-home orders, and the need for social distancing led households to buy more food for consumption at home during the Coronavirus pandemic. In response to the economic downturn and pandemic conditions, emergency allotments were issued to Supplemental Nutrition Assistance Program households. Additionally, Pandemic Electronic Benefit Transfer benefits were distributed to households with children missing free and reduced-price school meals. The Economic Research Service says the expansion led to a rapid increase in the dollar amount of these benefits issued to households and redeemed for food at home. In March 2020, food at home spending spiked. In June 2020, redemptions of the benefits peaked at $9.5 billion-making up 13.3 percent of food at home spending that month. The share fell the following three months. Overall, the share of spending attributable to SNAP and P-EBT from April through September 2020 was 11.7 percent, more than one in nine dollars and nearly five percentage points higher than the same months in 2019.
| Rural Advocate News | Wednesday June 9, 2021 |
Washington Insider: Another China Flare Up After recent contacts between U.S. officials and Chinese officials appeared to go relatively smooth, the U.S. has now raised the ire of China over Taiwan. Recall that China considers Taiwan to be a part of China, not an individual country. Secretary of State Antony Blinken told a House committee on Monday the U.S. plans to open trade talks with Taiwan. "We are engaged in conversations with Taiwan, or soon will be -- on some kind of framework agreement," Blinken said in response to a question from Rep. Andy Barr, R., Ky., during the hearing. Blinken declined to provide more information on the topic and referred questions about details to U.S. Trade Representative Katherine Tai. A spokesman for Tai's office said that strengthening relations with Taiwan is important, though "we have no meetings to announce at this time." But the response from China was anything but sanguine. Asked about the trade talks with Taiwan, a spokesman for the Chinese Embassy in Washington said the U.S. should "stop all forms of official exchanges and contacts with Taiwan, stop elevating its relationship with the Taiwan region in any substantive way." The spokesman urged Washington to adhere to decades-old agreements with Beijing, which commit the U.S. to maintaining only formal ties as a condition for formal relations with China. Taiwan is a major source of semiconductors for the U.S., which imported $7 billion last year in chips and $20 billion in other computer and telecommunications equipment out of $60 billion in total imports. That is double U.S. exports to the island, according to Census Bureau data. The Biden administration Tuesday also announced it has wrapped an initial 100-day review of supply chains in some key areas outside of agriculture. The upshot of that review? The United States will target China with a new "strike force" to combat unfair trade practices that the administration says are damaging U.S. supply chains, according to Reuters. The group will be led by the USTR, which has the power to enforce tariffs against China and other countries. News reports also said the Department of Commerce is considering initiating a Section 232 investigation into the national security impact of neodymium magnet imports used in motors and other industrial applications, which the United States largely obtains from China. This comes as imports of U.S. ag goods by China have continued to be strong, with weekly export figures putting up lofty numbers for U.S. corn in particular as China seeks to build up supplies of the grain. The U.S.'s situation with Taiwan and China has always been a dicey. This latest action sets the stage for another friction point between the two sides that should be watched closely, Washington Insider believes.
| Rural Advocate News | Wednesday June 9, 2021 |
DOJ Says Zen-Noh Must Sell Nine Elevators to Complete Purchase of Facilities From Bunge The Department of Justice (DOJ) Antitrust Division determined that purchase by Zen-Noh Grain Corporation (ZGC) of 35 operating and 13 idled grain origination elevators from Bunge North America would violate Section 7 of the Clayton Act. Those elevators are primarily along the Mississippi River and its tributaries. In its proposed final judgment, ZGC would be required to divest nine grain elevators in five states along the Mississippi River and its tributaries. DOJ said the action is based in part on ZGC operating in some areas along the Mississippi and Ohio Rivers along with its affiliate CGB Enterprises in competition against Bunge. "The acquisition will eliminate competition between ZGC and Bunge in those locations; as a result, many U.S. farmers are likely to receive lower prices and poorer quality service when seeking to sell their grain," DOJ said in the proposed Final Judgment. ZGC sought to acquire the Bunge facilities for approximately $300 million under an agreement in April 2020. In the proposed Final Judgment, DOJ said there were overlapping draw areas where ZGC would be required to divest included McGregor, Iowa; Albany/Fulton and Shawneetown, Illinois; Caruthersville, Missouri; Huffman, Osceola and Helena, Arkansas; and Lake Providence and Lettsworth, Louisiana. Comments on the proposed Final Judgment are due 60 days from today.
| Rural Advocate News | Wednesday June 9, 2021 |
USDA Prerule On Labeling Cell-Based Meat, Poultry Products Under Review At OMB USDA's Food Safety and Inspection Service (FSIS) has sent a prerule on labeling of meat and poultry products made using animal cell culture technology to the Office of Management and Budget (OMB) for review. The Trump administration targeted April of this year to issue an advance notice of proposed rulemaking on the topic but had no final timeline identified when they included it in their regulatory agenda released in the fall of 2020. A prerule is defined as a rule in the earliest stage of rulemaking, and may include actions agencies are considering that may or may not ever become actual rules, according to the Congressional Research Service (CRS). Contacts say this is similar to what FDA did on similar issues relative to cell-based products. It is not clear what timeline the Biden administration has in mind relative to this topic, one that will be very closely watched by the U.S. food and agriculture industry.
| Rural Advocate News | Wednesday June 9, 2021 |
Wednesday Watch List Markets The latest weather forecasts continue to get top attention from grain traders, while there hasn't been much export news to talk about. The U.S. Energy Department will release its weekly energy inventory report at 9:30 a.m. Wednesday, possibly showing a fourth consecutive week of ethanol production above 1 million barrels per day. Weather Scattered showers will continue to develop over the eastern half of the country Wednesday with more isolated showers expected in the Plains. Heat continues to be an issue across northern locales, especially where showers have not occurred, stressing developing row crops.
| Rural Advocate News | Tuesday June 8, 2021 |
USTR Tai Participates in Meeting with Asia Pacific Trade Partners U.S. Trade Representative Katherine Tai, over the weekend, met with Asia-Pacific trade ministers while also commenting on the U.S.-China trade relationship. Before the meeting, Tai said regarding trade with China, “It’s a relationship in trade that has been marked by significant imbalance -- that is in terms of performance, but also in terms of opportunity and openness of our markets to each other.” The number of talks between the U.S. and China appear to be increasing, with no public signs of progress, according to Bloomberg News. Tai met with members of the Asia-Pacific Economic Cooperation, largely focusing on trade issues during the COVID-19 pandemic. Of note, the members state, “While the agriculture sector has been resilient and international markets have remained relatively stable during the pandemic, it remains one of the most protected sectors in global trade.” The members say they share a view towards achieving substantial progressive reductions in support and protection for agricultural products. *********************************************************************************** May a Busy month for Ag Options Trading CME Group reports the Grain and Oilseed option complex averaged 3.9 million contracts of open interest, the highest mark ever in the month of May. The complex also had an average daily volume of 351,000 contracts, the second-highest mark in May. July Corn ended May with a 41 percent implied volatility, the highest level going back to 2007. July added more than 90,000 contacts of open interest reaching 636,000 contracts, with the $7 calls having the most volume and open interest change. On May 11, Soybean Oil, Soybean Meal, Lean Hog, Live Cattle, Class III Milk, and an Ag broad-based index were added to the suite of CME Group Volatility Indexes. CME Group says the tool is specifically useful in the current Grain and Oilseed markets to understand the change in implied volatility over time and in relation to other Ag products. The indexes are seen as a key indicator of forward risk expectations, noted as implied volatility. *********************************************************************************** NPPC CEO to Retire This Year After 31 years of service with the National Pork Producers Council, including the last 20 as CEO, Neil Dierks has announced his plan to retire by the end of the year. However, Dierks will remain in his role as CEO until the search process for a new CEO is completed and will serve as a strategic counselor during a transition period. NPPC president Jen Sorenson says, “Over the last 40 years, Neil has made countless, lasting contributions to the U.S. pork industry and established NPPC as a leading national advocacy organization.” Dierks started his career in the pork industry when he joined the Iowa Pork Producers Association in 1981 to manage the Iowa Pork Congress. The NPPC Board of Directors has assembled a search committee made up of producer leaders and retained Korn Ferry to lead the search for a new CEO. The NPPC board expects to complete the search by the end of the year. ************************************************************************************ PLC Renews Call for Wild Horse Management The Public Lands Council late last week renewed its call for responsible, proactive management of horses and burros managed by the Bureau of Land Management. PLC says recent activist efforts seek to exploit political transitions and undermine progress toward improved management of wild horse and burro populations on federal lands. PLC adds the recent flurry of misinformation, and inflammatory rhetoric is simply an attempt to hide the truth, being, "there are too many horses and burros on the land, and ecosystems, wildlife, and multiple uses pay the price." Based on environmental analysis that examines forage conditions, water availability and other factors on the landscape, BLM set a nationwide “Appropriate Management Level” of approximately 26,690 horses. Conservative estimates place the number of horses actually on the range at 95,114, which is more than three times the environmentally driven stocking rate set by the federal agency. Estimates from on-the-ground monitoring suggests the population far exceeds 100,000 horses. ************************************************************************************ Food Service Sector Needs Workers to Meet Demand The foodservice industry is opening nationwide with relaxed restrictions following the height of the COVID-19 pandemic. However, worker shortages are a growing problem, as restaurants must compete with better-paying jobs and unemployment benefits. Operators are raising wages, offering first-day bonuses and some McDonald's locations are even giving new employees iPhones. The foodservice sector provides significant demand for food and agriculture products, which shifted to home dining options or take out during the pandemic. Now, pent-up consumers are looking to dining out, but the sector is behind demand. Federal data shows the foodservice industry added 186,000 jobs last month. Restaurant Business Online reports restaurants now employ 10.8 million workers, recovering 4.5 million workers from the depths of the pandemic. However, the sector remains 1.5 million workers short of pre-pandemic highs. The labor force participation rate was 61.6 percent in May, 1.7 percent lower than last February, suggesting several people have left the workforce and are not yet returning. ************************************************************************************ Teachers Across the Country Share FFA and Agriculture Opportunities Agriculture educators this summer are sharing the story of FFA and agriculture education in their states and communities. More than 82 agricultural education teachers will continue to share the story as part of the National Teachers Ambassadors for FFA program. The program, which began in 2016, provides teachers with the tools to share information about FFA and agricultural education with their communities. Teachers selected for the program receive intensive training in June and July to learn and collaborate on educational resources. Similar to last year, this year’s training will be virtual. National FFA Organization chief program officer Christine White says, “Through this program, we equip teachers with the tools they need to be successful in not only developing future leaders but also in telling their stories.” The ambassadors will present workshops and work with teachers from across the country to brainstorm and share ideas. The ambassadors will also serve as a voice of the organization to teachers across the country.
| Rural Advocate News | Tuesday June 8, 2021 |
Washington Insider: Consumer Debt Increasing Consumer credit use expanded again in April, marking the third monthly increase in consumer debt, according to data from the Federal Reserve. The $18.6 billion rise in April was driven mostly by increased use of auto and student loans by consumers, basically matching the March increase of $18.6 billion. Loans for cars and student loans are considered to be non-revolving credit by the Fed, and those increased by $20.6 billion, according to the update for April. And it was a notable increase as it was the biggest since June 2020 when it increased $22.7 billion. But the area that could be a concern is in the area called revolving credit. That's where things like credit cards and store cards are categorized. Consumers have again kept their plastic in their pockets as revolving credit levels decreased by $2 billion in April. This is a continuing trend that has been seen since the pandemic hit last year. In fact, revolving credit is down some 12.2% since the peak in February 2020. Since February 2020, consumers have only increased their revolving credit three months. That has translated into much higher savings by consumers as they appear to be "spooked" by the pandemic and likely job losses, etc. This is sort of a double-edged sword. On the positive side, it signals that consumers have paid down their debt levels relative to high-interest-rate credit cards since the pandemic started. That is a plus. And with more money in the bank they are in a more-sustainable position. But the downside to less credit card use is that consumers are not using their plastic to make large purchases. Often times, consumers have opted to use credit cards to make those bigger purchases and then pay them off over time. The Associated Press quoted Nancy Vanden Houten, senior economist at Oxford Economics, that consumers remain reluctant to use their credit cards as they have instead used stimulus dollars it appears to boost their spending. But she expects that will change. "We expect growth in consumer credit will accelerate in the second half of 2021 as consumers dust off their credit cards, and reopenings and better health conditions incentivize stronger outlays," Vanden Houten said. The big rise in student loans and auto loans helped to bring total borrowing by consumers to $4.24 trillion in April, 0.4% above the mark of $4.22 trillion set in February 2020. Another factor at play could be the housing situation. Consumers are finding that the housing market is white hot with it firmly a sellers' market. Multiple bids for houses are being made when a property comes on the market. And it typically doesn't last long. Plus, those homes are selling at higher and higher prices, another factor which may be tempering the willingness of consumers to pull out their credit cards for run-of-the mill purchases. And the lack of travel is another contributing factor. Without airfare, hotels and rental cars being booked, that is a key way that credit cards get used by most consumers. So we will see. Consumers are in better shape relative to their credit cards even though total consumer debt is back to pre-pandemic levels. At some point, they will start using those credit cards again and that will bring a further boost in consumer demand, helping to keep the economy moving forward, a situation that needs to watched closely, Washington Insider believes.
| Rural Advocate News | Tuesday June 8, 2021 |
Lawmakers Press USDA On Aid To Contract Growers More than 60 lawmakers are calling on USDA to expedite payments to contract chicken farmers that have been hurt by the COVID-19 pandemic, urging USDA in a June 4 letter to dole out the $1 billion in aid approved in December for contract growers of poultry. "We are concerned by the fact that these chicken growers still have not received federal assistance since the start of the COVID-19 pandemic," lawmakers said in the letter referencing the Coronavirus Food Assistance Program (CFAP) aid. "We recognize that it is challenging to determine how losses and payments should be calculated fairly, given variations in the timing of when growers receive and finish raising their flocks. Still, we encourage you to proceed swiftly with making fair payments." USDA has previously indicated the aid was coming, but has said that it has to undertake a rulemaking effort in order to send out the funds. Sens. Chris Coons, D-Del., and Roger Wicker, R-Miss., and Reps. Steve Womack, R-Ark., and John Rose, R-Tenn., were key signers of the letter.
| Rural Advocate News | Tuesday June 8, 2021 |
USDA Formally Announces Nutrition Program Shifts USDA has outlined its plan for boosting food banks and food purchases, using up to $1 billion from recent congressional spending packages. The information comes in the wake of USDA ending the Farmers to Families Food Box program. However, USDA has insisted that it will use the "best of" from the Food Box effort to make changes to other food/nutrition programs. USDA said it will use nearly $500 million from recent spending packages to expand the network of providers through The Emergency Food Assistance Program (TEFAP) to aid food banks and local organizations in meeting ongoing needs in their communities. Another $400 million will be used by the Agricultural Marketing Service to expand the pool of local and regional farmers and ranchers, including minority farmers, servicing food bank networks. One of the keys in the USDA effort was providing $100 million for storage and refrigeration capacity. The agency will use cooperative agreements with state and tribal governments and local groups that encourage purchases from local, regional and socially disadvantaged producers. The Food and Nutrition Service will use $100 million for a new grant program to help food aid groups meet TEFAP requirements and expand their service to rural, remote and high poverty communities. Meanwhile, USDA's Agricultural Marketing Service issued a thank-you letter to participants in the Food Box effort. "We now have an opportunity to address long-standing issues in the U.S. food system by building it back better," the agency said.
| Rural Advocate News | Tuesday June 8, 2021 |
Tuesday Watch List Markets The latest weather forecasts will continue to get quick attention from traders early Tuesday. The U.S. Census Bureau reports on the U.S. trade deficit for April at 7:30 a.m. CDT and specific export data from the report will be released by USDA later Tuesday. USDA has not announced a daily export sale since May 27, but traders will pause at 8 a.m. to see if there are any new sales to report. Weather Heat combined with a small disturbance will produce scattered thunderstorms across portions of the Northern Plains on Tuesday afternoon and evening, some of which may be severe. Other showers will develop across the eastern Midwest down to the Gulf of Mexico. Heat continues to be a main weather factor across the north, especially where showers do not occur.
| Rural Advocate News | Monday June 7, 2021 |
USDA Predicting Record Farm Exports in 2021 The U.S. Department of Agriculture says the fiscal year 2021 will be a good year for American farm exports. In the latest quarterly agricultural trade forecast, the agency says farm exports will total $164 billion, which would be the highest total in history. “U.S. agricultural trade has proven extraordinarily resilient in the face of a global pandemic and economic contraction,” says Ag Secretary Tom Vilsack. “It’s clear that trade remains a critical engine powering the agricultural economy and the U.S. economy as a whole.” The report projects an increase of $7 billion in trade since the February forecast. USDA notes key factors include record export volumes for several commodities, including corn, soybeans, livestock, poultry, and dairy products. Another major influence is the continued rising demand from China for American ag products. USDA predicts exports to China will be a historic $35 billion. Foreign demand for U.S. corn should remain strong amid unfavorable crop prospects in Brazil and other South American countries, driving projected export totals up another $3.2 billion since February’s forecast to $17.2 billion. Livestock, poultry, and dairy exports are also predicted to rise, while the only two commodities predicted to see a decline are horticultural exports and processed tree nuts. ********************************************************************************************** Legislation Introduced to Repeal Cuban Trade Embargo Senator Jerry Moran (R-KS) recently introduced legislation that would relax the U.S. trade embargo with Cuba. The Neighbor says the legislation’s goal is to open another avenue for profit for American farmers and ranchers. Moran says the current regulations are limiting revenue streams for farmers, ranchers, and even manufacturers. Moran tells the Kansas City Star that the unilateral trade embargo on Cuba blocks American farmers, ranchers, and manufacturers from selling into a market just 90 miles from U.S. shores. “At the same time, foreign competitors like China are benefiting at our expense,” Moran says. “This legislation will expand market opportunities for U.S. producers by allowing them to compete on a level playing field with other countries.” If the legislation gets passed, it will repeal all regulations that restrict doing business with Cuba. “Having the opportunity to export crops like wheat, corn, and soybeans to our neighbors down in Cuba would be a win for farming communities across Kansas and around the country,” says Kansas Farm Bureau President Rich Felts. Studies by the U.S. Trade Commission show that lifting the embargo could potentially increase exports by 166 percent and bring an additional $800 million to the U.S. economy over five years. *********************************************************************************************** Lawmakers Urge Administration to Appeal Damaging Court Ruling Congressional lawmakers are spearheading a couple of letters to the administration asking the USDA and Department of Justice to appeal a recent federal court ruling. If left unchallenged, they say the ruling will cause tremendous financial harm to American hog farmers starting at the end of this month. The federal court’s decision that takes effect on June 29 struck down a provision of the USDA’s New Swine Inspection System allowing for faster harvest facility line speeds. The system got approved for industry adoption in 2019. At a time when the U.S. faces a much-needed increase in pork harvest capacity, the court order will reduce plant capacity at six plants that are currently running at a quicker harvest pace by as much as 25 percent. “While the economic impact to the packers will be significant, it’s the nation’s small-and-medium-sized farmers who will suffer the greatest harm from upstream impacts,” the lawmakers say in the letters. NPPC President Jen Sorenson thanked the lawmakers who spearheaded the letter and urged other lawmakers to join the growing calls for USDA and the DOJ to quickly intervene and “prevent this carnage to hog farmers.” Producers looking for more information about the impact of the court’s decision can go to www.nppc.org. ********************************************************************************************** Global Food Prices Hit Highest Mark in Ten Years Emerging markets across the globe that are struggling to get COVID-19 vaccines may be in for yet another serious challenge: food inflation. The United Nations Food and Agriculture Organization said last week that its global food price index hit its highest mark since September of 2011. As groceries make up a bigger share of their inflation baskets, developing nations will be hit the hardest. For example, in the United Kingdom, food and non-alcoholic drinks make up nine percent of the averages family’s expenditures. However, in Kenya, it’s one-third of the total. A Reuters article says May’s increase was the biggest month-on-month jump since 2010, which might mean social unrest. The rapid tripling of rice prices in 2008 from Thailand, one of the biggest exporters in the world, sparked rioting in West Africa. The cereals part of the FAO index is just below 2008 levels. Experts say after the hardships caused by COVID-19, consumers in emerging markets likely will have lower tolerance levels for rapidly rising prices. ********************************************************************************************** Indiana’s FFA Leadership Center Hit by Lightning Lighting struck a building last week at the FFA’s Indiana Leadership Center. The Indy Star says while none of the injuries were considered serious, more than a dozen children were evaluated and two of them got taken to the hospital “out of an abundance of caution.” Emergency dispatchers received a call after lightning struck a wood cabin located at the Center. The caller told officials that no one appeared to be seriously hurt, but several children and adults reported minor pain from being shocked by the strike. The Johnson County Sheriff’s Office said, “The children involved were not even sure that they’d actually felt something or if it was simply a combination of the extremely loud noise and lights.” Fire crews from several departments reported no damage to the cabin, which is apart from the main FFA Indiana Leadership Center buildings made from metal. Investigators said there didn’t appear to be any fire danger for the structure. *********************************************************************************************** USDA Investing $1 Billion in Emergency Food Assistance Program The USDA says it will be investing up to $1 billion into the Emergency Food Assistance Program to help support and expand the emergency food network. The goal is to help food banks and local organizations serve their communities more reliably when the need arises. USDA will enter into cooperative agreements with state, tribal, and local entities to be more efficient in purchasing food from local producers and investing in infrastructure that enables partner organizations to reach underserved communities more effectively. National Farmers Union is pleased with the USDA announcement. NFU President Rob Larew says no one should have to worry about where their next meal might come from. “It doesn’t need to be that way,” he says. “Family farmers and ranchers work hard to feed their communities, and there is more than enough food to go around.” The organization says by strengthening the nutrition safety net, the administration’s initiative would help mitigate any hunger crisis in America. “It would also give our farmers more options for distributing the food they grow,” Larew says.
| Rural Advocate News | Monday June 7, 2021 |
Washington Insider: US-China Trade Relations The U.S.-China trade relationship is one that has "significant imbalance," according to U.S. Trade Representative Katherine Tai. "There are parts of this trade relationship that are unhealthy and have over time been damaging in some very important ways to the U.S. economy," Tai told reporters over the weekend ahead of a virtual meeting between trade ministers from the Asia-Pacific Economic Cooperation (APEC) forum. Tai was asked if the U.S. was going to continue the Phase One agreement reached between China and the U.S. by the Trump administration, prompting her comments about the imbalance. "It's a relationship in trade that has been marked by significant imbalance - that is in terms of performance, but also in terms of opportunity and openness of our markets to each other," Tai stated. "The United States is committed to doing everything we can to bring balance back to the U.S.-China trade relationship." Bloomberg pointed to recent contacts between the U.S. and China which included meeting with Tai and Treasury Secretary Janet Yellen with Chinese Vice Premier Liu He. "While China said that those talks showed the two sides have restarted normal communications, there's been no public sign of any progress on the bilateral tariffs or of discussions over other economic flashpoints between the nations," Bloomberg reported. That is in part as the Biden administration and Tai in particular have indicated there is a review underway of U.S.-China trade relations, including the Phase One agreement. As that review is ongoing, there has been little change in the U.S.-China trade relationship. The U.S. has maintained tariffs on China over intellectual property, steel and aluminum. Those U.S. tariffs prompted a response from China in the form of retaliatory tariffs against a host of U.S. goods. But there has been little else coming from the administration on their plans for the U.S.-China trade relationship. Tai has indicated she plans to build on the trade deal reached in January 2020 and that she respects the continuity of the U.S. policy. But Bloomberg points out there are some signals being sent on the administration's plans for Sino-U.S. relations. The White House's top official for Asia said last month that the U.S. is entering a period of intense competition with China, and the administration last week maintained its Trump-era ban on investment in the U.S. by some Chinese companies. Also, China has continued to make purchases of several U.S. products, including agricultural products like corn. China bought millions of tons of U.S. corn last month but their purchases have fallen off after the surge in purchases. We will get another batch of China trade data this week and that will show their continued step up in imports of U.S. ag goods. But attention will also be on manufactured goods and on energy products, places where they continue to run well behind the commitments they made in the Phase One agreement. But as those in ag are aware, there were many changes undertaken by China as part of that Phase One agreement. So the imbalances that Tai is referring to would appear to be mostly outside of agriculture. That is not to say that all the U.S.-China trade issues in agriculture have been addressed -- they have not. Matters like biotech and the study of ractopamine as a feed additive are two issues where China has not fully implemented terms of the Phase One agreement. From the Chinese side, they have continued to note the U.S. needs to take some actions like removing the tariffs in place in order to further advance the relationship. And they also take exception to Tai's claims that China's market is not as open as it should be. Bloomberg reported that China's Minister of Commerce Wang Wentao argued that China is continuing to open up its economy despite the challenges of the pandemic, listing a number of areas in which it had reduced controls on foreign investment and trade. Further, he also noted that China was "favorably considering" joining the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the updated Trans-Pacific Partnership agreement that Trump pulled out of days into his presidency. The U.S. also wants to rejoin that pact, but has not yet indicated what kind of changes they would like to see for that to take place. That is yet another area in U.S. trade policy that has yet to be fleshed out. U.S. agriculture export forecasts from USDA have China as the top importer of U.S. ag goods, so agriculture has clearly seen a positive, or mostly positive result out of the Phase One agreement. So we will see. As the Biden administration's trade policy toward China and other countries becomes clearer in the weeks ahead, that will be an important matter to watch ahead, Washington Insider believes.
| Rural Advocate News | Monday June 7, 2021 |
Lawmakers Seize on JBS Situation for Potential Actions Sen. Chuck Grassley, R-Iowa, said the JBS cyberattack should be met with an effort to make structural changes to the U.S. livestock industry. Grassley said the cyberattack's fallout showed the risks of industry consolidation that has led to a handful of big companies processing the bulk of America's meat. "If you had 10 companies instead of four, or 20 companies instead of four, we'd be less vulnerable if one of them was hacked," said Grassley, who has proposed legislation that he said would require meatpackers to compete more directly on livestock purchases. "It ought to teach us something, that there have been too many mergers," he said. Grassley and some other farm-state senators in March re-introduced legislation that would require beef processors to make at least half of their weekly livestock purchases on the open market, versus through pre-negotiated contracts. Proponents say the requirement would make cattle markets more competitive and improve prices for ranchers. Other senators proposed a separate bill in March that would set regional minimum cash prices for cattle and increase reporting requirements for processors. House Agriculture Risk Management Subcommittee Chair Cheri Bustos, D-Ill., said she is looking closely at the cybersecurity threat to the food supply chain. "This was huge," she told Bloomberg. "The plants are mostly back up now, but even temporary closures can have a big impact, and we saw that with JBS." Expect congressional hearings ahead on the JBS cyberattacks.
| Rural Advocate News | Monday June 7, 2021 |
USDA Looking to Address Lack of Competition in Livestock Markets USDA Secretary Tom Vilsack told Politico the agency is planning several moves in the coming months to improve cattle market transparency and boost meat processing capacity after complaints of extreme consolidation, Vilsack said. The USDA chief recently said that there needs to be more transparency in livestock markets and he would take "aggressive" action on that front. "Obviously the Department of Justice is going to make its decisions, as it should, but what we can do at USDA is figure out ways in which we can provide support for processing capacity," Vilsack told Politico. "We can provide potentially greater price discovery by having more processing capacity--we may have a cash market that is more transparent, more open and therefore more reliable." Vilsack said USDA can also "take a look" at the Packers and Stockyards Act to "make sure that we are able to take action against unfair, deceptive practices." Meanwhile, a Department of Justice (DOJ) official Thursday said that the agency's antitrust division will focus on the ag industry. Richard Powers, the acting assistant attorney general for antitrust, told a virtual discussion organized by Canada's Competition Bureau, "Agriculture is a priority for us moving forward." He pointed to the DOJ investigation into price-fixing among chicken companies, which has so far netted a guilty plea and $107 million fine for JBS's Pilgrim's Pride, and indictments against Georgia's Claxton Poultry Farms and 10 executives.
| Rural Advocate News | Monday June 7, 2021 |
Monday Watch List Markets Sunday evening and early Monday, traders will be checking the latest forecasts, mainly for rain chances in the U.S. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. This week's crop condition ratings will include soybeans for the first time in 2021. Weather An upper-level low will produce widespread showers across eastern growing areas Monday. Additional showers and thunderstorms are forecast across Texas, the High Plains, and across the Northern Plains, where showers are sorely needed. Storms across the Northern Plains could be strong to severe, but will be isolated where they occur. Hot temperatures will continue to bake northern areas of the country, especially where showers do not occur. Heat and drought stress continue to be major concerns in these areas.
| Rural Advocate News | Friday June 4, 2021 |
Farm Bureau Urging Administration to Address Southern Border Crisis The American Farm Bureau Federation joined all 50 state Farm Bureaus and Puerto Rico Farm Bureau sent a letter to the Biden Administration regarding the country’s southern border. They’re asking the White House to address the surge of undocumented immigrants entering the United States. The increase in illegal immigration is severely impacting farm and ranch families, putting property and personal safety at risk. The letter was sent to the Secretaries of Homeland Security, USDA, and the Interior Department. “We’ve been listening to the concerns of our members and hearing how their livelihoods are being affected by the surge at the border,” the letter says. “Farmers are sharing how their crops and property are being damaged, which is causing financial hardship.” Farm Bureau says landowners are seeing their fences cut, crops destroyed, water sources compromised, vandalism, and litter on their property. The letter points out that local and state border security resources are exhausted and ask the federal government to provide additional resources to secure the border. *********************************************************************************************** House Ag Chair Opposes Biden Tax Proposals House Ag Committee Chair David Scott (D-GA) sent a letter to President Biden regarding his American Jobs Plan and American Family Plan. While he supports the historic nature of the plans, he’s unhappy with some of Biden’s tax proposals to help pay for the plans. Scott says the tax plan will likely hurt farmers even though the tax liability would be put off as long as a farm stays within the same family. “In particular, the stepped-up basis is a critical tool enabling family farming operations to continue from generation to generation,” Scott says in the letter. “The potential for capital gains to be imposed on heirs at death of the landowner would impose a significant financial burden on these operations.” As he understands the exemptions, they would delay the tax liability for those continuing the farming operation until the time of sale, which could result in further consolidation in farmland ownership. That would make it more difficult for young or socially disadvantaged farmers to get into the business. “While I appreciate that the proposal provides for some exemptions, the provisions could still result in significant tax burdens on many family farming operations,” Scott adds in the letter to Biden. ********************************************************************************************** Farmers Paying Higher Rental Rates in Iowa Most farmers in Iowa are seeing a significant increase in what they’re paying for land rents in 2021. That’s according to a new survey from Iowa State University Extension and Outreach. The “Cash Rental Rates for Iowa 2021 Survey” shows that rental rates increased by an average of 4.5 percent, which equates to an increase of about $10 per acre. That’s pushed the total per-acre average rental price to $232. Land considered to be high quality saw an average increase of 3.9 percent from $257 to $267 per acre this year. Medium quality land saw a 4.5 percent increase, going from $223 an acre last year to $233 this year. An ISU Economist says this is the first substantial increase in cash rents since 2013, when rents peaked, and four years of declining rents and three years of relatively stable rents followed. The 2021 cash rent survey is based on more than 1,300 responses from Iowans about typical cash rental rates in their counties for land producing corn, soybean, hay, oats, and other land set aside as pasture. ISU Extension reminds producers and landowners it’s not intended to be a price-setter, but to provide something to share between landowners and tenants as they discuss rental rates in future negotiations. *********************************************************************************************** Registration Open for 2021 Cattle Industry Convention and NCBA Trade Show Registration is now open for the annual Cattle Industry Convention and National Cattlemen’s Beef Association Trade Show. The event is In Nashville, Tennessee, August 10-12, and filled with activities for the entire family. Cattlemen and women from around the country gather for education, entertainment, and excitement. The importance of gathering face-to-face this year is even more important after the uncertainty of 2020. Convention participants have an opportunity to gain insights on market trends during the CattleFax Outlook Seminar, hear a state of the industry update from NCBA leadership, learn about the cattle industry’s role in sustainability, and wander through the NCBA Trade Show. The trade show is the industry’s largest, featuring more than 350 exhibitors on more than seven acres of space. “The convention always brings producers together, but I think this year’s event will mean even more because we get to see people face to face,” says NCBA President Jerry Bohn. It’s recommended that attendees get registered early as housing fills quickly. For more information, go to convention.ncba.org. ********************************************************************************************** 28 Congressional Members Join Letter to U.S. Attorney General Earlier this week 28 members of Congress joined a letter authored by Senators Mike Rounds (R-SD) and Tina Smith (D-MN) calling for reform of policies impacting U.S. cattle and beef markets. R-CALF-USA says 16 Senators and 12 Representatives from both the Republican and Democratic parties, along with an independent, co-signed the letter, calling on U.S. Attorney General Merrick Garland to take action to protect the nation’s cattle farmers and ranchers from going broke due to inexplicably low cattle prices. The congressional signers represent 23 states are also asking Garland to protect American consumers from paying over-inflated prices for beef at their local grocery store. R-CALF USA President Gerald Schreiber says, “We are grateful to the 28 congressional signers on the Rounds/Smith letter who have identified the key factors hindering cattle farmers and ranchers’ ability to continue providing American consumers with an abundant, safe, and affordable supply of beef.” The letter raises concerns that U.S. antitrust laws are either not being properly enforced or they are “not capable of addressing the apparent oligopoly that so plainly exists in cattle and beef markets.”
| Rural Advocate News | Friday June 4, 2021 |
Washington Insider: Still in Search of Infrastructure Deal President Joe Biden will meet again Friday with Sen. Shelly Moore Capito, R., W.Va., as the two try to hammer out a deal on an infrastructure package. But Bloomberg reports that the clock is ticking and at least one key lawmaker, Rep. Jim Clyburn, D., S.C., is thinking the effort needs to wrap up even if there is not a deal. Biden has insisted on meeting with Capito on the infrastructure plan, with Republicans having upped their offer to just over $900 billion from an initial offer of around $568 billion. Biden, for his part, has trimmed the hoped-for package to $1.7 trillion versus the initial $2.25 trillion he was seeking. The latest developments saw Biden offer another concession to Republicans on a key issue -- the corporate tax rate. Biden initially proposed raising the corporate tax rate to 28% from the current 21%. The lower level was a result of Republicans' 2017 tax package, and they are totally against digging into that package for savings or revenue to be able to pay for the infrastructure effort. Biden offered a minimum tax rate of 15%. But that concession may have been too much for some Democrats. "We are still negotiating," House Majority Whip Jim Clyburn, D., S.C., told Bloomberg TV. But, he added, "I don't think we should run the risk of not getting something done because the other side is not cooperating." The minimum 15% tax on U.S. corporations, along with strengthened IRS enforcement efforts, was offered by Biden as a way to pay for the infrastructure package without digging into the 2017 tax law. Even as he offered that to Capito and Republicans, White House press secretary Jen Psaki has insisted that Biden still hasn't given up on raising the corporate tax rate. Under that offer, Bloomberg said, is the concept that companies that have lots of tax credits and deductions would be required to pay at least 15%. The proposal would also increase tax revenues by conducting more audits of rich taxpayers. But a key Democrat is also against that rise in the corporate tax rate to 28% -- Sen. Joe Manchin, D., W.Va. He has emerged as a "king maker" of sorts, being a moderate Democratic lawmaker in the 50 Democrats in the U.S. Senate. Manchin made clear that he favored a corporate tax rate more like 25%. Biden indicated at that point that he was open the negotiations. Manchin's vote is key as without his support, any infrastructure package is unlikely to clear the Senate even if budget reconciliation is used. Meanwhile, Clyburn wasn't ready to say Biden should abandon the efforts with Republicans even as he said they seem to be "shall we say, reticent" to reach a deal. However, he told Bloomberg that he thinks the situation is one where Democrats are thinking they are "running out of time" relative to finding a bipartisan agreement. Meanwhile, Senate Minority Leader Mitch McConnell, R., Ky., said he has talked to Capito and indicated Republicans are "still hoping to reach a bipartisan agreement with the administration." His hope is that an agreement can be found on infrastructure -- and "fully paid for" -- noting it could be up to $1 trillion in size. But another issue has continued to be raised by farm-state lawmakers relative to other tax provisions suggested by Biden as ways to pay for the package. House Agriculture Committee Chairman David Scott, D., Ga., is the latest to express what he called "serious concerns" on how some of the proposed tax changes could affect farmers, ranchers and other small businesses. "While I appreciate that the proposal provides for some exemptions, the provisions could still result in significant tax burdens on many family farming operations," Scott said in a letter to Biden sent this week. The chairman noted that changes to how taxes are levied on inheritances could make it more difficult for farmers to take over family businesses. The loss of stepped-up basis is of particular concern, as he argued while provisions would not mean those inheriting farmland would have to pay immediately, they still could face a large delayed tax bill. Scott's concerns come despite assurances issued by USDA the evening the tax plan was unveiled that farmers would not be affected by the proposed changes. Already, even before the release, opposition from ag interests over proposals relative to increasing the estate tax helped jettison that from the final proposal. And there is also opposition to the proposed ending of using Section 1031 provisions of U.S. tax law for farmers to sell farm ground and buy other farm ground with the proceeds to defer taxes on the sale. But there is another wrinkle in the situation. The rising expectation had been for Democrats to eventually push President Biden to abandon talks with Republicans on infrastructure and use budget reconciliation to move the package through without GOP support. But Politico is reporting that "The Senate's chief procedural referee has effectively killed a workaround Majority Leader Chuck Schumer, D., N.Y., eyed as a bonus opportunity to pass President Joe Biden's agenda without Republican support." So we will see. Clearly the Biden administration appears to have underestimated the concerns that those in the ag community would have over the proposed tax provisions. And the possibility that the Senate may not be able to bypass Republicans in the Senate adds another layer to the situation. The bipartisan opposition to the tax proposals are creating a debate that needs to be watched closely, Washington Insider believes.
| Rural Advocate News | Friday June 4, 2021 |
ITA Delays Preliminary Determination on Imports of Organic Soymeal From India The International Trade Administration (ITA) will delay the deadline for a preliminary determination in the countervailing duty (CVD) investigation on imports of organic soymeal from India. The investigation was started April 20, and the preliminary determination was originally due June 25. Petitioners in the case made a request to delay that preliminary determination and ITA has now set that as August 30. The request was made to "provide Commerce with sufficient time to analyze adequately all alleged subsidies received by the mandatory respondents during the period of investigation," according to a notice published in the Federal Register. The final determination is still due 75 days after conclusion of the preliminary determination.
| Rural Advocate News | Friday June 4, 2021 |
JBS Says Cyberattack Situation Resolved JBS USA, the victim of a cyberattack that prompted the company to suspend activity at most of its U.S. slaughter facilities, said Thursday the situation has now been resolved. JBS USA and Pilgrim's announced that all of its global facilities are fully operational after resolution of the criminal cyberattack on Sunday, May 30. As a result, JBS USA and Pilgrim's were able to limit the loss of food produced during the attack to less than one days' worth of production. Any lost production across the company's global business will be fully recovered by the end of next week, the company said, limiting any potential negative impact on producers, consumers and the company's workforce. "Thanks to the dedication of our IT professionals, our operational teams, cybersecurity consultants and the investments we have made in our systems, JBS USA and Pilgrim's were able to quickly recover from this attack against our business, our team members and the food supply chain," said Andre Nogueira, JBS USA CEO. "The criminals were never able to access our core systems, which greatly reduced potential impact. Today, we are fortunate that all of our facilities around the globe are operating at normal capacity, and we are focused on fulfilling our responsibility to produce safe, high-quality food." The company said it activated cybersecurity protocols, including voluntarily shutting down all of its systems to isolate the intrusion, limit potential infection and preserve core systems. In addition, the company's encrypted backup servers, which were not infected during the attack, allowed for a return to operations sooner than expected. "We would like to thank the White House, the USDA and the FBI for their support in quickly resolving this situation," Nogueira stated.
| Rural Advocate News | Friday June 4, 2021 |
Friday Watch List Markets Grain markets have been jumpy this week and the latest weather forecasts will continue to be closely watched. USDA's weekly export sales report is due out at 7:30 a.m. CDT Friday, along with the Labor Department's nonfarm payrolls and U.S. unemployment reports. It has been over a week since USDA had an export sales announcement and traders will pause at 8 a.m. to see if USDA can break the silent streak. Weather Temperatures will continue to build well above normal across the northern tier of the U.S. with triple-digit readings indicated for the Dakotas on Friday. Scattered showers will be mostly confined to the East and Gulf Coasts today but there will be a risk of severe storms over the far Northern Plains and into the Canadian Prairies late in the day and overnight. These showers will only be isolated and the heat that exists in the region will worsen drought stress.
| Rural Advocate News | Thursday June 3, 2021 |
Farmer Share of Food Dollar May Grow The latest federal data shows that the farmers’ share of the average U.S. food dollar increased slightly. The USDA’s Economic Research Service tracks yearly spending by American consumers on food, as well as how much of that dollar is captured by each part of the food supply chain. The agency recently released data for 2019 showing that the foodservice industry continues to claim a growing part of the average food dollar, increasing three percent to 38.5 cents in 2019. Farm production was the only other part of the food chain that saw its share of the food dollar increase, but that increase wasn’t a large one. Wisconsin Farmer Dot Com says the farmers’ share of the food dollar rose from a 25-year low of 7.4 cents in 2018 to 7.6 cents the following year. Paul Mitchell, director of the Renk Agribusiness Institute at the University of Wisconsin, says he was surprised by the slight increase after years of decline. “I think part of it was the foodservice side got saturated,” he says. “It couldn’t get any bigger and the farmer share got so low it had to go upward. Once you hit rock bottom, there’s nowhere to go but up.” ********************************************************************************************** POET Ethanol Expands Business by 40 Percent POET announced it has acquired Flint Hills Resources’ entire ethanol business. Reuters says that highlights the largest American biofuel producer’s bet that conventional renewable fuels like corn-based ethanol will play a big role in the push to reduce U.S. carbon emissions. The company says the deal will boost POET’s ethanol production capacity by 40 percent to three billion gallons annually. “Biofuels are one of the best near-term solutions to climate change,” says POET founder and Chief Executive Jeff Broin (Broyne). “We don’t have decades to wait, and biofuels are already here today.” The acquisition includes six biofuel processing facilities that are in Iowa and Nebraska, as well as two terminals in Texas and Georgia. POET, based in Sioux Falls, South Dakota, will now operate 33 biofuel processing operations in eight states. Flint Hills is a refining, biofuels, and petrochemical company based in Wichita, Kansas. It was the fifth-largest ethanol producer in America before the acquisition. The deal will also boost POET’s dried distiller’s grain production to seven million tons a year and its corn oil production to 975 million pounds annually. *********************************************************************************************** Barchart Forecasts a Cut to USDA Corn Yield and Production Numbers Barchart announced its initial 2021 Yield and Production forecasts for U.S. corn and soybeans, which both show a downside risk to the USDA’s projected numbers from its May WASDE Report. The company now says the end-of-season U.S. corn production is forecast at 14.5 billion bushels, with a yield of 173.5 bushels per acre. That’s compared to the USDA production forecast at 15 billion bushels and a 179.5 bushel per acre yield. Barchart’s end-of-season soybean production forecast is 4.3 billion bushels with a yield of 49.5 bushels per acre. That’s compared to the USDA production forecast of 4.4 billion bushels and a yield of 50.8 bushels per acre. A statement from the company says, “Our initial 2021 forecasts suggest potential downside for both corn and soybean production relative to the USDA numbers, and we’re happy to help provide insights like this to the public.” The company releases yield and production forecasts on the first Tuesday of each month during the growing season. ********************************************************************************************** New Soybean Seed Trait Delivers on Consumer Preference, Farmer Bottom Line The U.S. soy industry is continuing to drive demand through innovation for soybean farmers and end-users. With funding and support from the soy checkoff, the Missouri Soybean Merchandising Council is leading the effort to build momentum for SOYLEIC (Soy-LAY-ick), a non-GMO soybean variety containing high oleic trait technology. This variety will give farmers a chance to meet end-user high oleic oil needs for specific markets. “SOYLEIC is the latest example of the value the checkoff brings to soybean farmers by providing research funding investments that result in innovations farmers can put to work right now to maximize profit opportunities,” says Meagan Kaiser, USB Treasurer. “The reliability that U.S. soybean farmers provide can meet end-user demand, expand and strengthen market share in the food industry, and diversify their acres, furthering profitability on the farm.” SOYLEIC seeds are going into about 40,000 acres across 14 states from Georgia to Minnesota during the 2021 growing season. A new website, www.soyleic.com, is now available for more information for farmers, researchers, chefs, and health-conscious consumers. High oleic soybean oil provides increased functionality and contains zero trans-fat. It creates nutritional food for humans and feeds for animal diets while offering a diversified and value-added planting option for farmers. ********************************************************************************************** World Pork Expo Returns Next Week The World Pork Expo makes an official return to the Iowa State Fairgrounds in Des Moines, June 9-11. The National Pork Producers Council presents the Expo, and this year will mark the 33rd annual event. Thousands of producers and industry professionals will gather to learn about the latest technologies, innovations, enjoy some free pork, and much more. “We’re so excited to gather for the first time since 2018,” says NPPC President Jen Sorenson. “This year’s Expo has an outstanding lineup of seminars, networking opportunities, and more that aren’t to be missed.” The trade show will feature over 700 vendor booths and span more than 30,000 square feet. Companies from North America and around the world will be presenting products and services during the event. The Expo will feature 19 educational sessions, including 13 business seminars to inform attendees about ecosystems, new production systems, climate neutrality, and more. Six Pork Academy seminars will give producers a chance to learn more about nutrition, sustainability, data collection, and more. Attendees who missed the chance to register online can register there at the event by going to the Animal Learning Center. *********************************************************************************************** Competitive Bidding Pushes Land Prices Higher Interest in buying agricultural land continues to grow after a COVID-19 slowdown blanketed the land market in 2020. A Farmers National Company release says farmers are feeling more financially secure because of rising commodity prices and large government payments last year. That is causing farmers to be more aggressive in bidding for additional land than has been the case during the last six years. “Farmland sales prices are up 5 to 15 percent in the past six months, with most of the increase coming since the first of the year,” says Randy Dickhut (DICK-hoot), senior vice president of real estate operations with Farmers National. “Competitive bidding among interested buyers is really pushing land prices right now.” The biggest increases are happening in the Grain Belt and with most types of land. “We’re seeing competitive bidding push prices for good cropland to levels approaching 2014 values,” Dickhut says. “Average to lower-quality farms are seeing stronger selling prices too, while pastureland increases are more modest.” He also says the demand for good farmland is outstripping the supply of available farms for sale.
| Rural Advocate News | Thursday June 3, 2021 |
Washington Insider: USTR Talks DST But Holds Off Tariffs The Office of the U.S. Trade Representative (USTR) Wednesday announced results of Section 301 investigations of digital services taxes (DSTs) with several countries, reaching the conclusion that the countries' actions were enough to warrant the U.S. to impose sanctions. But, USTR also announced that it would hold off on imposing tariffs on around $2 billion in goods from the countries in question for six months in order to have the issue get worked out in an international forum. USTR found in January that DST actions by Austria, India, Italy, Spain, Turkey, and the UK discriminate against U.S. digital companies, are inconsistent with principles of international taxation, and burden U.S. companies. The list of duties that would have gone into effect was sizable for several countries as they would have targeted goods totaling $887 million worth of UK goods, $386 million of Italian goods, $323 million in Spanish goods, $310 million in Turkish goods, $118 million in Indian goods, and $65 million in Austrian goods. USTR based the levels on what they deemed to be the amount of tax that U.S. companies would have had to pay those countries. So instead of putting the tariffs in place, USTR announced the 180-day suspension is aimed at letting international efforts underway at the Organization for Economic Cooperation and Development (OECD) and Group of 20 (G20) countries to come to an agreement over DSTs. "The United States is focused on finding a multilateral solution to a range of key issues related to international taxation, including our concerns with digital services taxes," USTR Katherine Tai said in a statement announcing the decisions. "The United States remains committed to reaching a consensus on international tax issues through the OECD and G20 processes." However, Tai indicated that the U.S. could still come back an impose tariffs under Section 301 of U.S. trade law "if warranted in the future." A pattern is starting to emerge relative to the Biden trade policy. In areas where they are seeking a deal, they are willing to hold off on imposing new tariffs like the DST issue. They also appear to be willing to suspend tariffs in order to get a deal worked out in other disputes, like the civilian aircraft dispute where the U.S., EU and UK all imposed tariffs that were sanctioned by the WTO. In March, the U.S. and EU and separately the U.S. and UK announced four-month suspensions of the retaliatory actions in the civilian aircraft disputes in order to try and reach a deal. The aircraft dispute has its origins going back some 16 years. Some trade experts question whether suspending the tariffs in hopes of getting a deal will merely provide a period of tariff relief as opposed to getting the issue settled given the length of time and differing officials that have dealt with the issue have come and gone. But their willingness to suspend tariffs is not yet a broad-based U.S. trade policy stance. Take the Section 232 duties on imports of aluminum and steel. Those remain in place and rising numbers of companies and others are calling on the Biden administration to remove those. Their arguments that they are costing U.S. businesses apparently have not reached the point of the administration thinking they could further resolve the steel overcapacity issue if the tariffs were at least suspended for a period of time. That is likely due to the fact they are focusing on China and the overcapacity in steel production that China has built up. It's almost surprising that the tariffs have not been lifted against some U.S. allies in exchange for getting some kind of pledge from those countries that they will get on board and help the U.S. take on China. And then there are the tariffs imposed on China under Section 301 relative to intellectual property. Those tariffs remain in place as do the retaliatory actions that China responded with. And there has been little talk of those tariffs being removed. The Biden administration has made clear those tariffs are not going away soon even as China has called for them to be taken away. So while tariff suspensions are clearly a tool in the U.S. trade policy toolbox, it hasn't been cemented in place as a consistent policy. That makes these trade issues all that more important to follow for agriculture as the sector has been the one hit with tariffs even though their products are not at the heart of the disputes in question. Still, the disputes where these tariff suspensions have taken place will be important to watch, Washington Insider believes.
| Rural Advocate News | Thursday June 3, 2021 |
China's Liu, US Treasury's Yellen Hold Discussion Chinese Vice Premier Liu He and U.S. Treasury Secretary Janet Yellen held a virtual discussion Wednesday morning via video as part of the China-U.S. comprehensive economic dialogue. The discussions took place after Liu last week held discussions with U.S. Trade Representative Katherine Tai. Liu and Yellen "conducted extensive exchanges on the macroeconomic situation and bilateral and multilateral cooperation, candidly exchanged views on issues of mutual concern, and expressed willingness to maintain communication," according to a report from Xinhua. Both sides agreed China-U.S. economic relations were "very important." The Treasury Department said in a brief statement that Yellen had discussed U.S. plans to "support a continued strong economic recovery and the importance of cooperation on areas that are in U.S. interest," while at the same time "frankly" talking about issues of concern. Yellen noted that she looked forward to further discussions with Liu, the statement said
| Rural Advocate News | Thursday June 3, 2021 |
USDA Announces New Cover Crop Component for Crop Insurance USDA this week announced producers who planted cover crops and have coverage under most crop insurance policies are eligible for premium support for the 2021 crop year, part of USDA's broader Pandemic Assistance for Producers (PAP) initiative. The Pandemic Cover Crop Program (PCCP) offers producers crop insurance premium support of $5 per acre, but not more than the full premium owed. Producers who insured a spring crop and planted a qualifying cover crop are eligible for the support. To qualify, producers must file an acreage report with FSA by June 15, a month earlier than the normal crop reporting date of July 15. And, farmers in Illinois, Indiana and Iowa have existing premium benefits for producers who plant cover crops. But USDA said that those producers will receive an additional benefit under PCCP.
| Rural Advocate News | Thursday June 3, 2021 |
Thursday Watch List Markets ADP reports on U.S. private sector job growth at 7:15 a.m. CDT Thursday, an early hint of how the May jobs report will go on Friday morning. U.S. weekly jobless claims and an update of the U.S. Drought Monitor will be out at 7:30 a.m. CDT. The U.S. Energy Department has its natural gas inventory report at 9:30 a.m., followed by the weekly energy inventory report at 10 a.m. CDT, including ethanol production. The latest weather forecasts will be closely watched while USDA's weekly export sales report is pushed to Friday morning. Weather A system will continue to move through the Ohio Valley Thursday with showers from the eastern Midwest down to the Gulf Coast. Scattered showers will continue across Texas as well, but other areas will remain dry. Heat is building across the northern tier of the country with heat advisories currently over Montana and more to come across the Dakotas and Minnesota. The heat will exacerbate dry conditions across the Northern Plains and northern Midwest.
| Rural Advocate News | Wednesday June 2, 2021 |
May Ag Economy Barometer Tumbles The Purdue University/CME Group Ag Economy Barometer tumbled significantly in May, dropping 20 points to an index reading of 158. It marks the lowest point for the survey since September of 2020. Producers were less optimistic about both the current conditions and the future of the agricultural economy. The potential for changing tax rules and rising input costs appeared to be top of mind for producers this month and were the primary causes for the barometer’s decline. Of the total number of respondents, 78 percent said they are very concerned that the changes in tax policy being considered will make passing their farm on to the next generation more difficult. Also, 83 percent of producers expect capital gains tax rates to rise over the next five years, and 71 percent are very concerned about the potential loss of the step-up in costs basis for inherited estates. Producers expressed less optimism about their farm’s financial performance this month. The Farm Financial Performance Index declined to 126 from a record high of 138 in April. During May, more producers said they expected to reduce their machinery purchases and construction plans for the upcoming year. One place that farmers remain bullish is farmland values. *********************************************************************************************** NCBA Pushing Congress to Address Areas of Concern The National Cattlemen’s Beef Association led a letter supported by 37 affiliate state cattle associations, urging Congress to address critical areas of concern in the cattle and beef industries. They’re asking leaders of both the Senate and House Agriculture Committees to consider swift Congressional action in several areas, such as expanding beef processing capacity. They also want to broaden labor policies to strengthen the beef processing workforce, increase transparency in cattle markets by reauthorizing Livestock Mandatory Reporting, and they want Congress to support industry efforts to reform “Product of the USA” generic labeling. They also want Congress to ensure proper oversight of cattle market players by concluding the ongoing U.S. Justice Department’s investigation into the meatpacking sector. “Cattle producers across the country are frustrated, and with good reason,” says NCBA President Jerry Bohn. “In sale barns and state meetings across the country, we’re hearing the same story of sky-high input costs and intense market volatility.” As much of the country comes out of COVID-19 restrictions, consumer demand for U.S. beef remains strong, and producers have enough cattle to meet the demand. The profits from high boxed beef prices are not being passed on to the producers who supply the live cattle. ********************************************************************************************** USCA Responds to “Beef Market Myths” Report on Capitol Hill A report titled “Common Beef Marketing Myths and Facts” from the North American Meat Institute is being circulated on Capitol Hill. U.S. Cattlemen’s Association President Brooke Miller says the organization appreciates the commitment of U.S. livestock groups to expanding the capacity of the nation’s meat processing facilities. “However, it would be helpful if the meatpacking lobby, too, focused their attention on that goal,” Miller says. “We need proactive solutions at this time, such as research and development of markets for offal and hides, working with trade schools and colleges to recruit skilled labor into the industry, and to address the underlying challenges driving the critical labor shortage across the U.S.,” Miller says the report is neither “proactive nor solutions-oriented.” USCA also says it will continue to champion true price discovery and competition in the cattle marketplace. “We’ll continue to support the Department of Justice in its investigation of the U.S. meatpacking sector,” Miller adds. “In the meantime, we would greatly appreciate the opportunity to work with NAMI on solutions that support a sustainable future for U.S. cattle producers.” *********************************************************************************************** Vilsack Highlights Ag in President’s Budget Proposal Late last week, the White House released President Biden’s proposed budget for the fiscal year 2022, calling for $6 trillion in spending as well as controversial tax provisions. The Hagstrom Report says the president’s budget calls for USDA discretionary spending at $27.9 billion, a 16 percent increase over the previous year. Ag Secretary Tom Vilsack says the proposal calls for $700 million requested for the Reconnect Program to provide access to quality broadband for rural residents. The proposal would invest in critical research and development capacity for farmers. Vilsack says American farmers must be able to compete in world markets to thrive, all while protecting the health of America’s soil and water. The budget request would provide $4 billion for USDA’s research, education, and outreach programs focused on making investments in agricultural research to put science and data-driven tools and American technologies in the hands of farmers. The budget also increases funding for climate-smart agriculture, climate resilience, and clean energy by almost $1.5 billion. House Ag Committee Chair David Scott says he applauds the focus in the budget on important investments in rural America and food systems, particularly in rural broadband. ********************************************************************************************** Crop Insurance Pays Out Premium Benefit for Cover Crops Agricultural producers who have coverage under most crop insurance policies are eligible for a premium benefit from the USDA if they planted cover crops during this crop year. The Pandemic Cover Crop Program, offered by USDA’s Risk Management Agency, helps farmers maintain their cover crop systems despite the financial challenges caused by COVID-19. “Cultivating cover crops requires a sustained, long-term investment, and the economic challenges caused by COVID-19 made it financially challenging for many producers to maintain cover crop systems,” says RMA Acting Administrator Richard Flournoy. “Producers use cover crops to improve soil health and gain other agronomic benefits, and this program will reduce producers’ overall premium bill to help ensure producers can continue this climate-smart agricultural practice.” The program provides premium support to producers who insured their spring crop with most insurance policies and planted a qualifying cover crop during the 2021 crop year. The premium support is $5 per acre, but no more than the full premium owed. All cover crops reportable to FSA are eligible and include cereals and other grasses, legumes, non-legume broadleaves, as well as mixtures of two or more cover crop species planted at the same time. ********************************************************************************************** New Market for U.S. Soybeans Emerging in Africa The U.S. Soybean Export Council is continuing its work to develop new markets for U.S. soy. One of those new regions is Sub-Saharan Africa, the area south of the Sahara Desert consisting of more than 50 countries. USSEC says the region demonstrates a lot of factors that make it a valuable potential soy market. There’s a growing population that exceeds one billion, and it’s expected to double in size by 2050. That makes Sub-Saharan Africa one of the most substantial “frontier markets” in the world. The economic conditions in the region are getting stronger, with the annual GDP growth rates between 2 and 6.5 percent. Projections for the recovery and growth in the region are positive coming out of COVID-19 during 2020. People in the region are also taking steps to address protein deficiency as awareness, knowledge, and investment to combat the shortage continue to grow. USSEC says the African Development Bank Group is working to increase livestock ownership to help fill in dietary gaps and make an impact on nutrition in the region. Soybeans will play a key role in helping produce protein sources like milk, eggs, and fish.
| Rural Advocate News | Wednesday June 2, 2021 |
Washington Insider: Cyberattack Impacts Major US Meatpacker The ransomware attack that hit global meatpacker JBS affected its Australian and U.S. IT systems, and Politico is reporting that the company has told the White House they think it was a "criminal organization likely based in Russia." And the White House responded to the situation by prodding Russia on the situation, the second such major cyberattack on a U.S. company. "The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals," White House principal deputy press secretary Karine Jean-Pierre said Tuesday. USDA has reached out to other U.S. meatpackers to alert them of the situation and Jean-Pierre said the Biden administration is seeking to "determine what we can do to mitigate any impacts as they may become necessary." JBS has reduced shifts or shut plants in the U.S. in Greeley, Colorado, Cactus, Texas and Ottumwa, Iowa, as a result of the cyberattack. A statement released by the company indicated it could "take time" to resolve the situation and there could be sales delays as a result. Plants in Minnesota, Pennsylvania and Nebraska were also affected. "The company took immediate action, suspending all affected systems, notifying authorities and activating the company's global network of IT professionals and third-party experts to resolve the situation," the statement said. "The company's backup servers were not affected, and it is actively working with an Incident Response firm to restore its systems as soon as possible." Given the supply disruptions that emerged along the U.S. East Coast after the Colonial Pipeline cyberattack, there are rising concerns that meat supplies could be interrupted due to the situation. And, if slaughter plants are dark for any extended period, it will back live animals up in the system and reignite supply disruptions that emerged during the COVID-19 pandemic. Already, meatpacking plants have been dealing with labor shortages as worker absenteeism has been running higher than normal. So, the longer any cyberattack-linked shutdowns last, the potential for supply interruptions rises. It potentially has already impacted some daily USDA livestock reports, including the midday updates on wholesale boxed beef and pork reports. USDA said the reports were delayed due to "packer submission issues." This also raises another potential issue as more and more automation has been deployed in meatpacking facilities. Those systems are computer driven, and if computer systems are down, that could also play a role. And that raises yet another issue for things in the future if the industry continues to shift toward more automation and less human involvement in the processing of pork, beef and poultry. But this situation has revealed once again that computer networks remain a vulnerable point across several areas of the U.S. economy. These attacks will continue to keep the issue in focus, but it is not clear how fast government can respond to be able to do much more than retroactively get involved in the situation. As lawmakers continue their focus on consolidation in the U.S. meatpacking industry, this adds one more area of focus to the calls by lawmakers like Sen. Chuck Grassley, R., Iowa, and others for congressional hearings on the matter. JBS is the world's largest meatpacker and it controls around 25% of all U.S. beef capacity and roughly 20% of its hog slaughter capacity. Plus, they are also a major poultry market player with the Pilgrim's Pride business. And some retail deliveries of product there have already been reported. So, we will see. These two cyberattacks have continued to signal that bad players in the world are still at it and by tapping into two key areas of the U.S. economy -- food and energy -- it creates a situation that needs to be watched closely, Washington Insider believes.
| Rural Advocate News | Wednesday June 2, 2021 |
Dairy Margin Coverage Payments Triggered Again in April Dairy Margin Coverage (DMC) payments were triggered again in April as the difference between the national all milk price and the national average feed cost (margin) was below several of the producer-selected margin triggers. The national margin for April was $6.94 per hundredweight (cwt), triggering DMC payments for those that elected Tier 1 margin coverage levels from $7 per cwt to $9.50 per cwt, and for those with Tier 2 margin coverage levels from $7 per cwt to $8 per cwt. The payments range from $0.06 per cwt for those with $7 margin coverage to $2.56 for those with $9.50 per cwt margin coverage. As of May 17, USDA said that an estimated $344 million had been paid out to dairy producers opting for the DMC program. Payments have been triggered for January-April this year.
| Rural Advocate News | Wednesday June 2, 2021 |
Paycheck Protection Program (PPP) Closes to New Applications The federal government's Paycheck Protection Program (PPP) closed to new applications Friday as funding was on track to be exhausted. That marked the end of a $961 billion emergency effort that helped millions of small businesses survive the pandemic but included fraud claims and criticism that it did not reach the neediest businesses. The program had been scheduled to end on May 31, but the Small Business Administration on Friday said in a notice to lenders that "due to the high volume of originations today, the portal will be closing for new originations that evening." U.S. ag interests also fought details of the program in order to be considered eligible for the aid, and there were ag-specific enrollment opportunities during 2020 that afforded farm businesses to tap the aid.
| Rural Advocate News | Wednesday June 2, 2021 |
Wednesday Watch List Markets Traders will keep close watch over the latest weather forecasts and pause at 8 a.m. CDT to see if USDA has an export sale announcement. The only official report on Wednesday's docket is the Federal Reserve's Beige Book, due out at 1 p.m. The Energy Department's weekly inventory report is moved to Thursday, due to this week's holiday. Weather A system moving through the Ohio River Valley will bring showers to the southern and eastern Midwest down to the Gulf of Mexico Wednesday. More isolated to scattered showers will continue across the Southern Plains as well. But heat will continue to build across the Pacific Northwest and into the Northern Plains over the next few days. The heat will continue to exacerbate the ongoing droughts and lead to further damage to wheat.
| Rural Advocate News | Tuesday June 1, 2021 |
Regional Farm Credit Conditions Improving Further strengthening of the U.S. ag economy bolstered farm credit conditions in the first quarter of 2021. A Federal Reserve survey of agriculture credit conditions shows farm loan repayment rates continue to improve rapidly. After many years of growing financial stress and weakness in the ag economy, bankers reported that farm income was higher than a year ago for the second consecutive quarter, and demand for farm loans weakened. Interest rates on farm loans remained at historic lows during the quarter. Along with the better financial conditions, the lower interest rates helped to support widespread increases in farmland values. Stronger markets for most of the major commodities have led to higher prices and expanding profit opportunities across the sector in recent months. With the help of robust government support due to COVID-19, ag sector conditions have led to a rapid improvement in farm finances. While prospects aren’t as strong in the cattle industry, and drought continues to stress producers in many areas of rural America, the overall outlook for farm income and credit conditions remained significantly improved from recent years. ********************************************************************************************** Brazil Drought Worst in 91 years Brazil faces its worst drought in 91 years, causing the government to issue a drought alert. Late last week, an agency that’s a part of the Brazil Mines and Energy Ministry recommended the country’s water regulator to recognize a state of “water scarcity” after a prolonged drought-hit central and southern parts of the Parana (Pah-RAHN-yah) River basin. Financial Post Dot Com says a weather monitoring agency that’s part of the Agriculture Ministry issued its first “emergency drought alert” for June through September, saying that rains are likely to remain scarce in five Brazilian states during that period. The lack of rain across Brazil is hurting their agricultural commodities, livestock, and electricity generation as Brazil relies heavily on hydro dams for power. Drier-than-normal weather is especially hard on the second-corn crop, sugar, and coffee. Coffee futures recently hit a four-year high as traders are concerned that drought could even affect the 2022 crop. As they try to deal with the trouble, the Mines and Energy Ministry announced measures aimed at adjusting water levels that supply the country’s hydro dams to try and prevent power shortages. *********************************************************************************************** Corn Exports Sales Jump While Bean and Wheat Sales Fall Corn sales to overseas buyers rose while beans and wheat sales dropped during the seven days ending on May 20. The USDA says corn sales totaled 555,900 metric tons, up from almost 278,000 metric tons a week prior. Mexico was the big buyer at just over 378,000 metric tons, while China bought 168,000. The USDA report says unnamed countries canceled shipments worth 70,500 metric tons. Sales for the 2021-2022 marketing year that begins on September 1 were reported at 5.69 million metric tons. China bought 5.64 million tons, followed by Panama at just shy of 132,000 tons. But the agency says large cancellations expected during the week ending on May 20 didn’t materialize. Exports for the week hit 529,000 tons, down seven percent from the prior week. Soybean sales dropped 34 percent from the previous week, coming in at 55,900 metric tons. That number was 65 percent lower than the previous four-week average. Indonesia was the top buyer at 74,900 metric tons. For the 2021-22 marketing year, sales totaled 248,300 tons as Mexico bought 162,500. Exports totaled 294,600 tons, down 12 percent from the previous week. Wheat sales for delivery in the 2020-2021 marketing year that ended on May 31 fell 76 percent to 29,500 metric tons. ********************************************************************************************** Argentina Cattle Producers Ban on Sales Continues Argentina ranchers are protesting the government’s decision to suspend beef exports by halting their sales of cattle. One of the country’s beef producer associations announced the halt will continue through Wednesday, June 2. The sales strike began several days ago when the country said it will ban beef exports for 30 days because high food inflation has caught the attention of officials ahead of the mid-term elections in Argentina. Groups protesting the decision issued a statement saying, “The policy path chosen by the government will not achieve the stated goal of lowering domestic meat prices.” Reuters says the export ban pushed agriculture groups to halt the trading of livestock as tensions continue between the country’s farm sector and government, which is dealing with a forecast of consumer price inflation at 50 percent this year. Farm groups in Argentina are asking the government to address inflation by printing fewer pesos. A source from the Argentina Meat Exporters Consortium tells Reuters that, “There is a permanent dialogue with the government. The problem is we can’t find a solution.” Argentina exported over 897,000 tons of beef in 2020, which was worth 2.7 billion dollars. ********************************************************************************************** EPA Opens Application Period for Grants Dedicated to Sustainable Pest Control The Environmental Protection Agency is accepting applications for a 1-million-dollar grant initiative through the Pesticide Environmental Stewardship Program. The program, according to the EPA, encourages smart, sensible, and sustainable pest control in agriculture. Through the grants, EPA will support projects that explore innovative practices, technologies, education, and non-regulatory solutions that adopt integrated pest management strategies. While traditional pest control involves the routine application of pesticides, IPM focuses on pest prevention and only using pesticides as needed. EPA’s Michal Freedhoff says, “The work done under these grants supports the agency’s goal of providing a cleaner and healthier environment for all Americans.” EPA anticipates awarding approximately $1 million in total federal funding to support ten projects – one from each EPA region. Applications must be submitted by July 9, 2021, to get considered. The partnership program has previously invested nearly $4 million annually. Awarded projects will start in the fourth quarter of 2021. Grant applications can be sent online at www.grants.gov. *********************************************************************************************** NCBA/PLC Disappointed with Prairie Chicken Ruling The National Cattlemen’s Beef Association and the Public Lands Council expressed their disappointment in the U.S. Fish and Wildlife Service. The agency decided to move forward with the Endangered Species Act Designation for the Lesser Prairie Chicken. The decision designates two Distinct Population Segments of the species. The Northern DPS is southeastern Colorado, Kansas, Oklahoma, and the northeast Texas Panhandle, where the birds will be listed as “threatened.” The Southern DPS that covers New Mexico and the southwest Texas Panhandle will now list the species as “endangered.” NCBA and the PLC say the decision to implement restrictive ESA protections for the species after decades-long conservation partnerships directly cuts the incentive to continue effective public-private partnerships. “The scientific data supports our belief that voluntary conservation work led by producers is the most effective way to provide stability for the birds and their habitat,” says Kaitlynn Glover, NCBA Executive Director of Natural Resources and Executive Director of the Public Lands Council. “After years of successful voluntary conservation efforts and the development of meaningful partnerships, the ESA designation of the Lesser Prairie Chicken is severely disappointing.”
| Rural Advocate News | Tuesday June 1, 2021 |
Washington Insider: Overtures From Europe Bloomberg is reporting that the European Union (EU) is now seeking to mend the fences with the U.S. and seeking to rekindle what is typically a strong relationship. The EU has sent President Joe Biden "a proposed joint statement to smooth over recent conflicts and give a boost to the trans-Atlantic alliance to confront China and Russia," the report noted. The new offering from the EU seeks to move the U.S.-EU relationship beyond trade disputes and address tariffs imposed during the Trump administration that have applied to more than $18 billion in goods. The effort is with an eye on an EU-U.S. summit in Brussels on June 15. The draft argues that shared values and interests will help both sides meet "unprecedented global challenges." The EU, according to Bloomberg, said in the document that they will "closely consult and cooperate on the full range of shared challenges and opportunities in the framework of our respective similar multi-faceted approaches to China." That, no doubt, is music to the ears of the Biden administration as they have publicly been seeking to enlist other countries and trading partners in addressing issues with China. But the EU did not stop at China, as Bloomberg said the document also addressed Russia. "We stand united in our principled approach towards Russia and we will respond decisively to its repeating pattern of negative behavior and malign activities," the document said. That has become another thorny situation for the Biden administration to deal with in the initial stages of Biden's presidency. Expectations for Biden's first foreign visit as president are that the two sides will seek to establish closer cooperation on China, Russia and no doubt the lingering impacts of the COVID-19 situation. And timing is key -- Biden meets with Russian President Vladimir Putin in Geneva the next day after his session with the EU. But this is hardly a surprise. The EU has been making conciliatory gestures for the last several months, including their agreeing to a four-month hiatus of the tariffs each have imposed over the large civilian aircraft disputes involving Airbus and Boeing. And contained in that announcement was a clear mention of the two wanting to address China's actions. The two partners need to address "the trade distortive practices of and challenges posed by new entrants to the sector from nonmarket economies, such as China." And the EU and China have seen a rise in their tensions. In March, Bloomberg noted, China retaliated against Western sanctions over human rights in the Xinjiang region by announcing measures against 10 individuals and four entities from Europe. And EU lawmakers have committed that as long as China has sanctions on those officials, the bloc will not ratify an investment agreement between the two. Of course, the document is still subject to change, Bloomberg pointed out, but currently said the two want to "join forces to prevent and peacefully resolve conflicts, uphold the rule of law and international law, and promote human rights for all." But there are also challenges in this desire by the EU to have a closer relationship with the U.S. For example, global tax issues remain a sensitive subject from both sides and a reading on that issue will come when G7 finance ministers meet at the end of the week ahead of the G7 summit next week. Plus, look for climate change to be another area where both will seek to broaden their relationship. But there is a hot political potato for President Joe Biden in that document, as Bloomberg pointed out it includes statements on "discouraging investment in fossil fuels, including coal, and calling for a phase out of unabated coal in energy production." That one will be a major test for Biden as oil-state lawmakers already view themselves as being somewhat under attack by the administration in early decisions. So, we will see. This effort by the EU to again become more closely aligned with the U.S. is a strategic move on their part as they seek to end trade tensions between the two sides. But agriculture will still need to watch this relationship closely as even if some of the most-recent tensions are addressed, there are still a laundry list of ag trade and other topics that remain unresolved, Washington Insider believes.
| Rural Advocate News | Tuesday June 1, 2021 |
Lawmakers Probe USDA General Counsel Nominee on Several Issues The key topic at a hearing last week for USDA General Counsel-nominee Janie Simms Hipp was concerns that meatpackers are using their market power to drive down prices paid to producers. Several GOP senators led by the panel's ranking member John Boozman, R., Ark., were joined by Committee Chair Debbie Stabenow, D., Mich., in calling for a hearing on the matter to "look for solutions," Stabenow stated. Hipp said that she needs an economist and a scientist "at my elbow" to inform her about the technical issues in agriculture. Regarding biofuels, Sen. Amy Klobuchar, D., Minn., asked Hipp if she would defend the Renewable Fuel Standard (RFS) to the Environmental Protection Agency. Hipp promised she will be "a big voice at the interdepartmental table."
| Rural Advocate News | Tuesday June 1, 2021 |
Stabenow Calls for USDA to Implement COVID-19 Relief Provisions Senate Agriculture Committee Chairwoman Debbie Stabenow, D., Mich., is urging USDA to swiftly implement provisions included in the two latest coronavirus relief bills to protect food and farm workers and increase the resiliency of the U.S. agricultural supply chain. In a May 25 letter to USDA Secretary Tom Vilsack, Stabenow highlighted the supply chain provisions of the American Rescue Plan as well as programs in the consolidated appropriations bill intended to increase food assistance and safeguard workers from COVID-19. Language in the two measures provided a combined $5.5 billion to USDA for those efforts. "As USDA begins to implement these investments, I encourage the Department to take swift action and use creative approaches to help farmers and families recover from the pandemic," Stabenow wrote in the letter. Stabenow also highlighted the capacity of some existing programs at USDA to help make the supply chain more resilient and flexible in the face of large-scale disruptions. "Allocating a portion of the funding toward programs like the Healthy Food Financing Initiative and the Local Agriculture Market Program Regional Partnerships will help ensure we are reaching all facets of the supply chain to improve food access and respond to COVID-19," she wrote.
| Rural Advocate News | Tuesday June 1, 2021 |
Tuesday Watch List Markets Trading in U.S. grain futures resumes Monday evening at 7 p.m. CDT and traders will be paying close attention to the latest weather forecasts and any reports of freeze damage over the weekend. On Tuesday, ISM's index of U.S. manufacturing is set for 9 a.m. and USDA's weekly grain inspections report is due out at 10 a.m. USDA's Fats and Oils report will have a soybean crush estimate at 2 p.m., followed by Crop Progress and the first report of U.S. corn crop conditions at 3 p.m. CDT. Weather June begins on a dry and very warm note in northern and central crop areas. Rain will focus in the far southern Plains and portions of the Delta. Excessive heat adds to dryness stress in the western and northwestern crop areas as well. The seven-day outlook features heavy rain south, moderate amounts in the southeastern Midwest, and little to no precipitation for drought areas of the northern Midwest, Northern Plains and the Northwest.
| Rural Advocate News | Friday May 28, 2021 |
USDA Forecasts Record Farm Exports in FY 2021 The Department of Agriculture projects U.S. farm exports for 2021 at $164 billion, the highest on record. USDA announced its quarterly agricultural trade forecast this week. The results represent an increase of $28 billion, or 21 percent, from last fiscal year’s total, and a $7-billion increase from USDA’s previous 2021 forecast published in February. The annual export record of $152.3 billion was set in 2014. Agriculture Secretary Tom Vilsack says the estimate "shows that our agricultural trading partners are responding to a return to certainty and reliability from the United States." Key drivers of the surge in exports include a record outlook for China, record export volumes and values for several products, sharply higher commodity prices, and reduced foreign competition. China is poised to be back on top as the United States' number one customer, with U.S. exports forecast at $35 billion, eclipsing the previous record of $29.6 billion set in 2014. *********************************************************************************** Stabenow Urges USDA to Implement Food and Ag Supply Chain Provisions Senate Agriculture Committee Chair Debbie Stabenow urges the Department of Agriculture to implement American Rescue Plan provisions to protect food and farm workers. In a letter to Agriculture Secretary Tom Vilsack, Stabenow states the American Rescue Plan "included resources so that the people who power our food and ag supply chain are protected and have the resources they need to stay safe and keep the shelves stocked." In the letter, Stabenow highlights supply chain provisions of the legislation, as well as programs in the Consolidated Appropriations Act, including measures to increase purchases of food for donation, supply chain infrastructure investments and others. Additionally, Chairwoman Stabenow highlighted the capacity of some existing programs at USDA to help make the supply chain more resilient and flexible in the face of large-scale disruptions. Stabenow writes, "This is also an opportunity to better prepare the food supply chain in the event of a future disruptive event.” *********************************************************************************** USDA Not Appealing Court Decision on Pork Slaughter Line Speeds The Department of Agriculture will not appeal a federal district court ruling on faster line speeds in slaughterhouses. USDA told the Hagstrom Report that only the Justice Department can make a decision about the appeal. The comments came less than a day after the National Pork Producers Council urged USDA to intervene in the matter before the ruling takes effect at the end of next month. NPPC cites an analysis by an Iowa State University economist that shows the ruling will result in a 2.5 percent loss in pork packing plant capacity nationwide and more than $80 million in reduced income for small U.S. hog farmers. However, the United Food and Commercial Workers International Union praised the response from USDA. The union represents over 250,000 meatpacking and food processing workers. UFCW International President Marc Perrone says, “UFCW is calling on CEOs across the pork industry to work with the USDA to slow their line speeds.” ************************************************************************************ Perdue Documents Ag Confined Space Injuries Purdue University's Agricultural Safety and Health Program recently released the annual 2020 Summary of U.S. Agricultural Confined Space-Related Injuries and Fatalities report. The program reported 64 fatal and nonfatal cases involving agricultural confined spaces, including 35 grain entrapments, seven falls into or from grain storage structures, four asphyxiations and 12 equipment entanglements. The total number of cases represents a 4.5 percent decrease from the number documented in 2019, exceeds the five-year average and the number of reported mining-related fatalities in 2020. The report says, “there is a direct correlation between out-of-condition grain and an increased likelihood of worker exposure to entrapment situations.” Further, the report reminds farmers to never enter a grain bin with evidence of crusting on the surface or within the grain mass. If the grain is crusted or the floor outlets are plugged, contact a professional grain salvage service that has the equipment and experience to remove out-of-condition grain. ************************************************************************************ ASA Announced Wool Assurance Website The American Sheep Industry Association launched the American Wool Assurance website last week at AmericanWoolAssurance.org. The website allows American sheep producers to take a crucial step in certifying their wool through a voluntary, American industry-driven certification process. The American Sheep Industry Association worked with Colorado State University the past two years to develop the voluntary program and standards that will allow manufacturers to purchase American wool with confidence that the animals producing that wool have been raised with a high level of care. Industry input from producers, shearers, buyers, extension, animal welfare experts and processors was critical in the development of program standards. ASI Deputy Director Rita Samuelson states, “This is something that consumers and brands are asking for increasingly, and so it has become important to retailers, processors and wool buyers in recent years.” ASA says Sheep producers interested in earning certification should go to AmericanWoolAssurance.org and sign up as soon as possible. ************************************************************************************ NCBA to Honor Cattle Feeder Hall of Fame Inductees in August Cattle Feeders Hall of Fame inductees and award winners will be honored in August. The event, August 9, will precede the 2021 Cattle Industry Convention and NCBA Trade Show, to be held in Nashville, Tennessee. The Cattle Feeders Hall of Fame was established in 2009 to honor the exceptional visionary men and women who have made lasting contributions to the cattle-feeding industry. Inductees for 2021 are Johnny Trotter, president and CEO of Bar-G Feedyard in Hereford, Texas, and Steve Gabel, founder of Magnum Feedyard in Wiggins, Colorado. Dr. Gary C. Smith, visiting professor in the Department of Animal Science at Texas A&M University, will receive the Industry Leadership Award. George Eckert with Green Plains Cattle Company in Garden City, Kansas, and Gaspar Martinez with Harris Feeding Company in Coalinga, California, will receive the Arturo Armendariz Distinguished Service Award. Information on the 2021 Cattle Industry Convention and NCBA Trade Show, including tickets to the 2021 Cattle Feeders Hall of Fame banquet, can be found at convention.ncba.org.
| Rural Advocate News | Friday May 28, 2021 |
Washington Insider: US, China Talk Trade U.S. Trade Representative Katherine Tai and Chinese Vice Premier Liu He held discussions Wednesday evening, the first such session between the two since the Biden administration took office. The session was labeled candid on trade issues between the two sides. Tai discussed the Biden administration's guiding principles on trade policy and her continuing review of the U.S.-China trade relationship in a virtual meeting, the Office of the U.S. Trade Representative's (USTR) said. And Tai said she expected further discussions with Liu ahead. No doubt future discussions, depending on timing, will center on the review of U.S.-China policies that USTR is conducting. A review that is still underway, so timing of the next Liu/Tai discussion is not yet certain. All Tai has said so far about the Phase One agreement is that her view is “mixed” on the agreement that included purchase commitments made by China for manufactured goods, energy and of course agricultural commodities. From the Chinese side, their Ministry of Commerce described the call as “candid, pragmatic and constructive.” Outstanding issues include tariffs imposed by former President Donald Trump and U.S. sanctions against Chinese companies. The latter is one where the U.S. is not alone as several other countries have been targeting Chinese firms as well. What has not been given any mention publicly is the situation where the U.S. and others are putting restrictions on imports of cotton/textiles from Xinjiang over the issue of the Uyghur minority. Many outside of China say the Uyghurs are being subjected to forced labor, something China vehemently denies and there have been numerous articles in Chinese state-run media that seek to counter the allegations being made by the Western World. But even before Tai and Liu spoke, lower-level discussions took place Tuesday night. Chinese trade staffers on that call also called on the U.S. to roll back remaining tariffs on Chinese products. During the call, the Chinese stressed the importance of tariff rollbacks as a necessary component of next steps in the relationship. It is important that Liu was the point person on the call as there had been talk of him being replaced in the role that saw him negotiate the Phase One agreement with Robert Lighthizer, USTR under President Donald Trump. In letting Liu, President Xi Jinping's right hand on the economy, speak with Tai, the Chinese leadership is signaling the continued importance of the economic relationship to Beijing. When it comes to the Phase One agreement, many continue to point out that China is running behind its two-year purchase commitments under the deal. Both Chinese and U.S. data indicated that to be the case. But agriculture has done better than the other sectors relative to the purchase targets. Long-time trade folks have pointed out that the purchase commitments are kind of the “shiny object” in the deal. Several U.S. commodity interests point to other components of the Phase One agreement as being perhaps even more important. Indeed, those other matters are things that deal with sanitary and phytosanitary issues, some of the biggest areas where trade problems arise. Of the more than 55 policy changes that China committed to on agriculture trade, some 50 of those have been implemented. And some have had an immediate impact. Take the agreement between the U.S. and China that was announced in February 2020 where China cannot block all poultry imports from the U.S. in the event we have a bird flu outbreak. China halted its imports of U.S. poultry in 2015 after the bird flu outbreak, and only agreed to reopen its market under the Phase One agreement. Less than two weeks after that agreement was announced on the regionalized approach to poultry trade issues, the U.S. confirmed a case of bird flu in turkeys in South Carolina. The result was China only blocked poultry from South Carolina, not all of the U.S. The other that many point to is China now accepts export certification for meat and poultry plants by the U.S. Food Safety and Inspection Service. That has meant more than 4,000 plants can now ship product to China, up from around 1,500 before the Phase One deal. The changes made by China are important in that they cover not only trade under the Phase One agreement but they put in place changes that will govern future ag trade between the two sides. And that increased trade between the two sides spurred by the Phase One agreement helped push USDA to raise its forecast for U.S. ag exports in Fiscal Year (FY) 2021 to a record $164 billion. The U.S.-China relationship is a key one and it is one that has rising tensions as a component. It does not appear that China wants to walk away from the Phase One agreement, but they are pushing the “new” administration on the issue of tariffs, tariffs that got them to the table to negotiate the deal in the first place. So we will see. U.S. agriculture has clearly benefitted from the Phase One agreement. Perhaps not as much when viewed from the purchase commitments. But when the other critical changes that China has taken governing trade in agricultural products are considered, it is a relationship that so far is a sizable benefit to U.S. agriculture. But the China-U.S. relationship is a delicate one and must be watched closely, Washington Insider believes.
| Rural Advocate News | Friday May 28, 2021 |
Biden Budget Arrives Today The Biden administration's Fiscal Year (FY) 2022 budget arrives today and contains hefty spending for FY 2022 and lots of budget red ink. For agriculture, the key focus will be on what the plan offers for a spending plan at USDA and what kind of spending increases for areas like conservation that might be included. The focus there will be on what kind of signals, if any, the administration opts to send relative to using those programs to address climate change. With the Democrats in control of the House and Senate, it ups the odds the Biden budget plan will be able to get through. But there will be changes as lawmakers often want to put their own stamp on certain areas of any spending plan. Even the budgets proposed by the Trump administration were not adopted lock, stock and barrel when Republicans held both the House and Senate.
| Rural Advocate News | Friday May 28, 2021 |
USDA To Work With Hog Plants That Will Need To Slow Line Speeds USDA's Food Safety and Inspection Service (FSIS) said the agency will not challenge a court ruling which vacated a portion of the “New Swine Slaughter Inspection System” (NSIS) relative to line speeds at hog processing plants. “The Court vacated the rule only insofar as it eliminated the maximum line speed cap for NSIS establishments,” FSIS said of the decision by the U.S. District Court for the District of Minnesota. “The other provisions of the final rule were not affected by the Court's decision.” The court issued a 90-day stay to give plants time to adjust, FSIS said. “At this time, establishments operating under NSIS should prepare to revert to a maximum line speed of 1,106 head per hour on June 30, 2021,” the agency said. “We will work with the establishments to comply with the Court's ruling and minimize disruptions to the supply chain.” Those supply chain disruptions were cited by the National Producers Council (NPPC) as they called on USDA to appeal the decision. They pointed to an economic analysis showing the ruling would mean a 2.5% loss in pork packing capacity and an $80 million drop in income for producers. The group also said they will continue to “pursue all avenues” on the matter.
| Rural Advocate News | Friday May 28, 2021 |
Friday Watch List Markets Friday is the final trading session ahead of a three-day weekend celebrating Memorial Day. Grain prices could be volatile Friday with several weather factors at play and forecasts closely watched. A report on U.S. personal incomes and consumer spending is due out at 7:30 a.m. CDT, followed by the University of Michigan's consumer sentiment index at 9 a.m. Grains and livestock close at their normal times Friday. Grains will next trade at 7 p.m. CDT on Monday evening. Weather Friday brings an unseasonal dose of freezing cold to the northern Plains and far northern Midwest, with possible damage to crops. Meanwhile, light to moderate rain is in store for the eastern Midwest, which will offer favorable crop moisture. We'll also see a swath of rain extend into the Delta and southeastern Plains. Other crop areas will be dry. Showers will work into the western and central Plains during the Memorial Day holiday weekend.
| Rural Advocate News | Thursday May 27, 2021 |
National FFA Organization Picks New CEO The National FFA Organization and the National FFA Foundation have new leadership after picking Scott Stump as the new CEO of both organizations. Stump lives on a small ranch in Colorado with his wife, Denise, and their three children. He has a background in agricultural education, career and technical education, and the FFA. He received his bachelor’s degree in Agricultural Education from Purdue University. “it’s with great anticipation that I return to National FFA in this leadership role,” Stump says. “I know from personal experience as a student and as a parent the positive difference FFA makes in the lives of students across this nation.” Stump also says he looks forward to working with FFA’s talented national staff, committed board members, state and local leaders, and supporters to advance and expand the organizations’ collective impact. Ronnie Simmons, Chair of the National FFA Foundation Board of Trustees, says they’re excited to welcome Scott Stump to their team. “Scott brings decades of experience to the table, having been a part of FFA and agricultural education at nearly every level, including as a student member, classroom teacher, state staff, and national staff,” Simmons says. Stump replaces Mark Poeschl, who resigned in January after leading the organization for five years. *********************************************************************************************** Groups Ask Court to Vacate Trump Water Rule Environmental groups have asked a federal court to vacate the Navigable Waters Protection Act enacted during the Trump Administration. The motion for a summary judgment comes as the Biden administration continues to review the existing water rule. DTN says the South Carolina Coastal Conservation League filed the motion in a South Carolina U.S. District Court. They asked the court to vacate the rule based on what they call undisputed facts, including what they say has been lost protection for U.S. waters. In its motion, the Coastal Conservation League says the Army Corps of Engineers has been “flooded” with requests to get approved jurisdictional determinations securing the right to “pollute or fill newly excluded streams and wetlands free of the Clean Water Act’s permitting regulations.” They say in the past year that the law has been in effect, the rule’s threat to the nation’s waters has already been profound. However, agriculture groups support the current rule because they say it simplifies questions about the Clean Water Act jurisdiction that farmers face on their land. The groups call the Trump-era rule an “arbitrary policy reversal” that removed the Clean Water Act’s protections for millions of miles of streams and tens of millions of wetland acres. ********************************************************************************************** NBB Happy with Biodiesel Tax Credit Extension Proposal The National Biodiesel Board thanked a bipartisan group of senators and representatives for introducing the Biodiesel Tax Credit Extension Act of 2021. Senators Chuck Grassley (R-IA) and Maria Cantwell (D-WA) and Reps Cindy Axne (D-IA) and Mike Kelley (R-PA) introduced the legislation that would provide the biodiesel and renewable diesel industry certainty for an additional three years. It would support continued growth in the U.S. production of better, cleaner fuels that are reducing carbon emissions now and boosting rural economies. “As Congress looks to jumpstart economic growth, rebuild infrastructure, and reduce carbon emissions, they can count on biodiesel and renewable diesel to help achieve those goals,” says Kurt Kovarik, NBB Vice President of Federal Affairs. “Biodiesel and renewable diesel are on average 74 percent less carbon-intensive than petroleum diesel and have cut more than 140 million tons of carbon emissions since 2010.” The U.S. biodiesel and renewable diesel industries support 65,000 jobs in America and more than $17 billion in economic activity each year. Biodiesel production supports approximately 13 percent of the value of each U.S. bushel of soybeans. “The biodiesel tax credit continues to be extremely successful in expanding consumer access to clean, low-carbon fuels,” Kovarik adds. ********************************************************************************************** Iowa Coalition Reminding Biden of His Biofuels Promise Iowa lawmakers sent a letter to President Joe Biden and Ag Secretary Tom Vilsack asking them to support the biofuels industry and seeking information on how proposed tax changes will affect farmers. The senators and representatives sent the letter to remind Biden that he promised to promote renewable fuels, including ethanol, to support rural America. The letter points out that despite the promise, the administration’s proposed infrastructure bill would spend $174 billion to subsidize electric vehicles while hardly mentioning the biofuel industry. A Successful Farming article said when the plan was introduced in March, Ag Secretary Vilsack announced that the president’s proposed $2 trillion infrastructure plan, known as the American Jobs Plan, would include money toward increasing the production of biofuels. The Iowa lawmakers say they want the president to recognize that biofuels can be used as a permanent energy solution to help decarbonize the transportation sector. “Biofuels should not be treated as a transition fuel but prioritized as a fuel of the future,” the letter says. The lawmakers also state in the letter that they want data from the USDA showing how a proposed change in the tax law affecting capital gains taxes would affect farm estates. *********************************************************************************************** Foundation for Agriculture Awards Ag Literacy Grants The American Farm Bureau Foundation for Agriculture awarded $9,500 in grants to ten communities that are creating new ways to educate the public about agriculture. The end goal of each grant is to help communities with the funding they need to help people of all ages understand agriculture and the important role it plays in their lives. “The Foundation for Agriculture is pleased to highlight these ten communities that are bringing innovative agriculture literacy ideas into the classroom,” says Daniel Meloy, the foundation’s executive director. “The grant program is an exceptional way for educators, volunteers, and other leaders to get started on or expand an ag literacy project.” The criteria for selecting winners included the effectiveness of demonstrating a strong connection between agriculture and education, how successfully the project enhances learner engagement in today’s food, fiber, and fuel systems, as well as the timeliness and processes for accomplishing project goals. The foundation gave grants to recipients in Arizona, Georgia, Iowa, Kentucky, Minnesota, Nebraska, New Jersey, and South Carolina. ********************************************************************************************** USDA Initiative to Quantify Climate Benefits of CRP The USDA’s Farm Service Agency announced an initiative to quantify the climate benefits of the Conservation Reserve Program contracts. The multi-year effort will enable USDA to better target CRP toward climate outcomes and improve existing models and conservation planning tools while supporting USDA’s goal of putting American agriculture and forestry at the center of climate-smart solutions to address climate change. "CRP is a powerful tool for implementing voluntary, measurable conservation outcomes to mitigate the impacts of climate change,” says FSA Administrator Zach Ducheneaux (DOO-sheh-know). “Nearly 21 million acres are currently enrolled in the program that prevents the equivalent of more than 12 million tons of carbon dioxide from entering the atmosphere.” He also says further quantifying program benefits will allow the agency to better target CRP to achieve continued climate wins across environmentally sensitive lands while strengthening their modeling and conservation planning resources for all producers.
| Rural Advocate News | Thursday May 27, 2021 |
Washington Insider: Fed Says Taper Talk Coming The U.S. central bank is poised to start at least talking about when it will start to adjust its monetary policy as the U.S. economy continues to climb from the depths of the pandemic. The Federal Reserve has set the target range for the key Fed funds rate, the interest rate that governs costs of borrowing across the economy, at a range of 0% to 0.25%, in a bid to provide low-cost money so that the economy can recover from the COVID-19 pandemic. The Fed is also purchasing some $120 billion in bonds in a bid to keep interest rates low. As the economy recovers, a reduction or tapering of those bond purchases is expected as the Fed's first action to tighten monetary policy as it seeks to not let the economy grow too fast to spur inflation that would cause damages across the economy and curtail economic activity. For months, Fed Chairman Jerome Powell has said it is not yet time for the Fed to start “talking about talking about” tapering the bond buys. That comment he made months ago has become a source of questions nearly every time he has met with reporters, and he has maintained that it is not yet time for that to happen. But that time is getting closer. The April 27-28 meeting of the Federal Open Market Committee (FOMC), the meeting of Fed officials where they set monetary policy, indicated that to be the case. The recap of the meeting issued last week noted that FOMC members thought that if the U.S. economy continues to make strong progress, “it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.” That is “Fed speak” for talking about tapering. This mention is important because coming out of the financial crisis, the Fed also embarked on purchasing securities/bonds in a bid to keep interest rates low. A comment from then-Fed Chairman Ben Bernanke in congressional testimony that the Fed was talking about reducing those bond buys spooked investors and roiled stock and financial markets, a response that was called the “taper tantrum.” Bernanke responded by emphasizing over and over in following appearances that the Fed was not ready to take such a step. In fact, the Fed did not take that action for several months after Bernanke's comment. Powell, it seems, learned from the Bernanke experience. That is why he has taken grate pains to emphasize that the Fed does not think things have reached a point where the bond buys need to be reduced. Powell also pledged that when the Fed does take such a step, it will not be a surprise to markets. He wants to avoid another “taper tantrum” from unfolding in the markets. So, based on the minutes from the April meeting and comments from Fed officials in recent days, we're getting closer to the discussion taking place on tapering those bond purchases. This sets the stage for the U.S. central bank to tighten its easy monetary policy. That will mean borrowing costs will start to increase. That will start a new chapter for the U.S. economy as it will start to increase costs for consumers to do many things, like buying a home, buying a car, and using credit cards and more. So we will see. The process of raising interest rates has begun as the economy recovers. And, it means that agriculture will be seeing a rising cost component in the form of higher interest rates. While any increases are not expected to be large, this is still situation which needs to be watched closely, Washington Insider believes.
| Rural Advocate News | Thursday May 27, 2021 |
USDA Ups Grocery Store Price Outlook Upward revisions to food at home (grocery store) price forecasts for several food categories prompted USDA's Economic Research Service (ERS) to up their forecast rise in grocery store prices to an increase of 1.5% to 2.5% in 2021 versus 2020--the midpoint is right in line with the 20-year average of 2.0%. Overall food price inflation is still forecast at 2% to 3% (2.4% 20-year average) with food away from home (restaurant) prices seen rising 2.5% to 3.5% (2.8% 20-year average) from 2020 levels. So far this year, overall food prices are up 1.7% from the same period in 2020, with grocery store prices up 1.2% and restaurant prices up 2.4%. “Forecast ranges for meat categories, poultry, eggs, dairy products, fats and oils, and fresh fruits were also revised upward,” USDA noted, with only fish and seafood forecasts left steady with the month-ago outlook. “Forecast ranges for cereals and bakery products, nonalcoholic beverages, and other foods were revised downwards” compared with USDA's month-ago forecasts. “The meat and poultry price increases were driven by high feed costs and strong domestic and international demand,” USDA said. “In addition, winter storms and drought disrupted the beef supply, and high prices for sows dampened pork production.”
| Rural Advocate News | Thursday May 27, 2021 |
Senate Agriculture Committee Republicans Want USDA Analysis On Tax Plan Republican members of the Senate Agriculture Committee are calling on USDA Secretary Tom Vilsack to make public a detailed explanation and any supporting economic analyses that clarifies how the Biden administration's proposed tax increases will affect farm estates. The panel's Ranking Member John Boozman, R-Ark., authored a letter to Vilsack that questioned USDA's analysis of President Joe Biden's proposed changes in capital gains tax rates and the modification to stepped-up basis on America's family farms and ranches. The letter specifically asks for an explanation of how USDA arrived at the conclusion 98% of farm estates will not be impacted by the proposed tax changes. “The proposed tax impacts are dependent on a number of factors, including but not limited to appreciation in farmland assets prior to a property owner's death, size of the farm operation and associated assets, income of the heirs, and the farm's ownership structure. Given these factors, we are writing to seek a detailed explanation and supporting economic analysis clarifying how these tax provisions will affect farm estates, including specifically how USDA arrived at the conclusion that fewer than 2% of farm estates will be impacted by the proposed tax changes,” the senators wrote.
| Rural Advocate News | Thursday May 27, 2021 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. jobless claims, durable goods orders for April and first-quarter U.S. GDP are all set for release at 7:30 a.m. CDT Thursday, along with an update of the U.S. Drought Monitor. The U.S. Energy Department reports on natural gas inventory at 9:30 a.m. The International Grains Council's monthly supply and demand estimates are also due out Thursday morning. Even with all of Thursday's reports, the latest weather forecasts get top attention. Weather Light to moderate rain is in store for the northern and western Midwest and portions of the Northern Plains Thursday. This includes areas which were bypassed by recent rainfall. We'll also see some light snow in colder air. The rain moves into the eastern Midwest and southern Plains later Thursday with a broad area of severe storm potential in the southern Plains.
| Rural Advocate News | Wednesday May 26, 2021 |
USTR Begins USMCA Dispute Panel on Dairy Trade with Canada U.S. Trade Representative Katherine Tai Tuesday announced the U.S. has requested and established a dispute settlement panel under the United States-Mexico-Canada Agreement regarding dairy trade. The request seeks to review measures adopted by Canada that “undermine the ability of American dairy exporters to sell a wide range of products to Canadian consumers.” The U.S. is challenging Canada’s allocation of dairy tariff-rate quotas, specifically the set-aside of a percentage of each dairy TRQ exclusively for Canadian processors. Agriculture Secretary Tom Vilsack responded, “This is an important step for American agriculture and one that brings the U.S. dairy sector closer to realizing the full benefits of the USMCA.” Vilsack adds the action “puts our other agricultural trading partners on notice that they must play by the rules.” Praising the announcement, National Milk Producers Federation President and CEO Jim Mulhern states, “Canada has failed to take the necessary action to comply with its obligations under USMCA by inappropriately restricting access to its market.” *********************************************************************************** Senate Finance to Consider Clean Energy for America Act. The Senate Finance Committee Wednesday (today) will consider the Clean Energy for America Act. The legislation introduced last month will overhaul the federal energy tax code. Committee Chairman Ron Wyden of Oregon states, “The federal tax code is woefully inadequate to address our energy challenges.” The legislation consolidates current energy tax incentives into emissions-based provisions that incentivize clean electricity, transportation and energy efficiency. The incentives would be available to all energy technologies if they meet emissions reduction goals. The bill provides long-term incentives for battery and fuel cell electric vehicles and electric vehicle charging. It also provides a technology-neutral tax credit for domestic production of clean transportation fuel that are at least 25 percent cleaner than average, with clean fuels required to reach net-zero by 2030 to qualify. Senate Agriculture Committee Chair Debbie Stabenow says the bill “simplifies our tax code and shifts tax incentives away from oil and gas to clean energy,” adding the change is long overdue. *********************************************************************************** NPPC: Federal Judge Ruling Disastrous for Small U.S. Hog Farmers Left unchallenged, a recent federal district court ruling will result in a 2.5 percent loss in pork packing plant capacity nationwide, according to the National Pork Producers Council. NPPC says the ruling would reduce income by more than $80 million for small U.S. hog farmers. NPPC is urging the Department of Agriculture to intervene before the ruling takes effect at the end of next month. The federal court’s decision struck down a provision of USDA’s New Swine Inspection System allowing for faster harvest facility line speeds. NPPC says the court's ruling will have the opposite effect sought by those seeking to expand the number of meatpacking plant facilities. Lawmakers have recently called for increasing the number of pork processing facilities nationwide by bringing smaller state plants up to federal inspection standards. NPPC President Jen Sorenson says, “With the stroke of a judge’s pen, the lives of many hog farmers will be upended if this misguided ruling takes effect.” ************************************************************************************ Growth Energy Applauds Senate Push for Transparency on Refinery Exemptions Farm state Senators recently reintroduced the Renewable Fuel standard Integrity Act. Senators Tammy Duckworth, an Illinois Democrat, and Deb Fischer, a Nebraska Republican, reintroduced the legislation as a companion to House legislation introduced in February. The bipartisan proposal would require small refineries to petition for Renewable Fuel Standard hardship exemptions by June first of each year. Currently, EPA does not provide any deadline for refiners submitting a request for a small refinery exemption. The change would ensure that EPA properly accounts for exempted gallons in the annual Renewable Volume Obligations it sets each November. Senator Duckworth states the bill would "bring much-needed transparency to the waiver process and prevent it from being misused to benefit billion-dollar oil companies at the expense of hardworking Americans again." Biofuels groups welcomed the bill. Growth Energy CEO Emily Skor says, "This legislation provides long-overdue transparency for requests to avoid blending more low carbon renewable fuels that are key to America's low-carbon future." ************************************************************************************ Organic Sales up During Pandemic U.S. organic sales soared to new highs in 2020, jumping by a record 12.4 percent to $61.9 billion. The increase marked the first time that total sales of organic food and non-food products have surpassed the $60 billion mark, according to the Organic Trade Association. The organization released the data as part of its 2021 Organic Industry Survey. In almost every organic food aisle, demand jumped by near-record levels, propelling U.S. organic food sales in 2020 up a record 12.8 percent to a new high of $56.4 billion. In 2020, almost six percent of the food sold in the United States was certified organic. The COVID-19 pandemic caused consumer dollars to shift almost overnight from restaurants and carry-out to groceries, with traditional staples and pantry and freezer items flying off the shelves. Consumer habits were upended, online grocery shopping and grocery deliveries exploded, and new products were tried as families ate three meals a day at home. ************************************************************************************ JBS, Pilgrims, Announce Free Community College Tuition Program for Rural America JBS USA and Pilgrim's this week announced the launch of Better Futures. The effort is a free-of-charge, two-year college tuition program providing more than 66,000 company team members and their dependent children the opportunity to pursue their higher education dreams. Better Futures removes a major financial barrier to college attendance and stands to become the largest free college tuition program in rural America. JBS USA and Pilgrim's advisors will also help team members, many from first-generation American families, navigate the application process, which can be a deterrence to people applying to college for the first time. To be eligible, JBS USA and Pilgrim's team members need only to have worked with the company for the last six months and remain in good standing with the company through completion of their education. College tuition is paid upfront by the company. If there is a facility where a college is not conveniently located, the companies will provide an online community college option.
| Rural Advocate News | Wednesday May 26, 2021 |
Washington Insider: Fights Ahead in Carbon Accounting As the focus on carbon emissions rises, there figures to be new battles looming on carbon accounting, according to the Bloomberg Green Insight newsletter. The start examining the issue by looking at the claim Australian Prime Minister Scott Morrison made in April that the country had cut its emissions by 19% in 2019 compared with 2005 levels. He made the announcement during the climate summit organized by President Joe Biden. Bloomberg labeled his claim on emissions reductions as "an attempt to burnish his country's coal-stained image." But digging deeper, the Green Insight author Ashkat Rathi said that the figures touted by Morrison was merely an accounting trick. Turns out, it was a neat accounting trick. "Australia has made minimal progress towards net zero and its emissions trends are among the worst in the developed world," a new study from the Australia Institute concluded. The study said that the reduction claims made by Morrison was only possible to get to if the land-use sector is included -- forests, agriculture and other related emissions. Taking those items out of the mix, the study said, Australia's emissions from fossil-fuel use and industry increased by 6% in 2018, relative to 2005. The big focus is on fossil fuels as their contribution of emissions, something which Bloomberg said is something that only can happen over the course of decades, according to Pep Canadell, chief research scientist at CSIRO's climate science center. But those emissions from land-use areas are certainly important. The Global Carbon Project said that the land-use sector added some 6.5 billion tons of emissions in 2019. To put that in perspective, that is about 20% of the emissions from fossil fuels for 2019. But therein lies another key issue. Experts agree that measuring emissions from land use are not easy and the measurements used on emissions reductions are largely based on avoiding a hypothetical polluting activity. Those emissions are going to be key in the climate change debate. Those also figure high on the list of things that will be focused on at the COP26 in Glasgow in November, Bloomberg said. That COP26 confab will see countries seek to come up with ways to agree on rules for the Paris Agreement to create a new carbon market to help the public and private sectors trade those offsets. Presumably, that would also provide the basis for pricing those credits, another key factor in the process. "The goal of the market is to reduce emissions, but without clear accounting and strict regulations there's a big risk of greenwashing," Bloomberg said. One of the terms that figures in the mix is "avoided deforestation," that is based on the concept that the world will have to avoid cutting down forests in order to meet climate goals. So to measure avoided deforestation, there will have to be a baseline of deforestation established. If, for example, that would be set at 1%, then if the rate of deforestation falls by 0.5% then those developing the projection can create offsets based on the 0.5% of emissions avoided because some trees weren't cut down. Those offsets could then be purchased by those who need such credits to "reduce" their carbon emissions. But that also leaves the situation rife for the potential for "greenwashing" of figures and manipulating baselines by sellers to create a big batch of credits. That sets up a situation where those that need to buy the credits could obtain them at a cheaper price. Then there is the potential for double counting. Bloomberg said that could arise as a company could delete emissions from their own accounts and a country could conceivably also cancel those same credits for that country. And Bloomberg said that is a real situation. "One of the reasons Article 6 negotiations have failed at previous COP meetings is reportedly because Brazil objected to the phrase 'double counting' appearing in the rulebook governing the new carbon market," Bloomberg said. So we will see. This situation could become a major issue ahead, particularly the matter of double counting and greenwashing and more. And agriculture figures prominently in the mix, particularly on land-use emissions. This creates a series of discussions and debates that agriculture will need to follow closely, Washington Insider believes.
| Rural Advocate News | Wednesday May 26, 2021 |
NPPC Weighs In On Court Decision On Pork Plant Line Speeds A recent ruling by a federal judge would be "disastrous" for small U.S. hog farmers, according to the National Pork Producers Council (NPPC). Left unchallenged, a recent federal district court ruling will result in a 2.5% loss in pork packing plant capacity nationwide, and more than $80 million in reduced income for small U.S. hog farmers, according to an analysis by Dr. Dermot Hayes, an economist with Iowa State University. NPPC is urging USDA to intervene before the ruling takes effect at the end of next month. The ruling, NPPC said, "will dramatically reduce hog farmer market power--particularly smaller producers located near impacted plants--and undermine pork industry competition." NPPC said the court's ruling will have the opposite effect sought by those seeking to expand the number of meat packing plant facilities. Lawmakers have recently called for increasing the number of pork processing facilities nationwide by bringing smaller state plants up to federal inspection standards. These facilities represent less than 1% of total harvest capacity.
| Rural Advocate News | Wednesday May 26, 2021 |
Mexican Judge Rejects Bid to Freeze Mexico GMO, Glyphosate Plans A request to freeze a government plan to ban imports of GMO corn and glyphosate by 2024 was rejected by Mexican Judge Martin Adolfo Santos Perez, marking the latest of what Mexico's National Council of Science and Technology (CONACYT) said have been 17 legal challenges of the order issued by Mexican President Andres Manuel Lopez Obrador. The latest action was brought by the National Farm Council (CNA). The group argued that it is concerned "radical and unscientific interpretations" of the planned bans will stoke uncertainty. CONACYT has been directed to come up with an alternative to glyphosate. USDA Secretary Tom Vilsack has said he has continued to discuss the issue with his Mexican counterpart and has indicated that the ban on GMO corn could apply only to corn used for food as opposed to feed, but the issue is not clear at this juncture.
| Rural Advocate News | Wednesday May 26, 2021 |
Wednesday Watch List Markets The latest weather forecasts continue to get close attention Wednesday and we'll watch for an export sale announcement, but there haven't been any export sales reported since Thursday. The U.S. Energy Department's weekly inventory report is set for 9:30 a.m. CDT and includes an update of ethanol production after it broke above 1 million barrels per day last week. Weather Showers and thunderstorms are in store for much of the eastern Midwest along with the central and western Plains Wednesday. Storms are capable of producing locally heavy rain in these areas, including flash flooding. Severe storms are also likely with a threat of hail, high winds and tornadoes. Other areas will be dry. Frost potential is also featured in the far northern Plains Wednesday night
| Rural Advocate News | Tuesday May 25, 2021 |
JBS Exits NCBA JBS has left the National Cattlemen’s Beef Association as the group is taking a closer look at market consolidation. NCBA, along with other livestock and general farm organizations, met recently to discuss livestock market concerns. And lawmakers have requested the Department of Justice continue, and provide an update on, its cattle market investigation. Politico reports JBS suspended its membership to NCBA last year as part of an internal review. Now, JBS is no longer a member of NCBA, but company officials say they expect to remain involved with the group. In response to the lawmaker’s effort, NCBA’s Ethan Lane stated last week, “We have a high supply of cattle at one end of this equation and a high demand for U.S. beef at the other, but the middle is being absolutely choked by the lack of processing capacity.” Known as the big four, Tyson, JBS, Cargill and National Beef process more than 80 percent of U.S. beef. *********************************************************************************** Bill Would Give USDA Authority over Rural Broadband House lawmakers last week introduced the Broadband for Rural America Act. The legislation would put the Department of Agriculture in the driver’s seat for rural broadband rather than the Federal Communications Commission. Georgia Republican Representative Austin Scott mentioned last week, "The FCC’s had their chance, and they haven’t gotten it done.” The bill is one of several infrastructure proposals from House Republicans. Scott says the legislation will provide new investments for USDA connectivity programs to bring high-speed internet infrastructure to rural communities. Specially, the bill would authorize $3.7 billion per year for rural broadband programs, including the ReConnect Rural Broadband Program, the Middle Mile Broadband Program, and the Innovative Broadband Advancement Program. The legislation would also target assistance focused on the most rural and least-connected residents, which are often the most expensive to connect. Finally, the bill aims to promote borrower accountability and protect taxpayers with new tools to ensure promised services are delivered to rural communities. ************************************************************************************ Organic Valley Announces Low Carbon Footprint Dairy on Path to Carbon Neutrality Phase one of Organic Valley's dairy life cycle assessment evaluated on-farm greenhouse gas emissions from dairy farms using different management practices. The results are in, and farming practices of Organic Valley farmers have a measurable benefit for the planet, reinforcing the cooperative's commitment to bringing ethically made organic food to families. University of Wisconsin-Madison's assessment reveals that, on average, the dairy farms of Organic Valley's members have a smaller carbon footprint than average U.S. conventional and organic dairy overall. The most significant difference in calculations of the carbon footprint of Organic Valley milk is in the inclusion of carbon sequestration from pasture as well as from forage and crop production. Including carbon sequestration in the LCA reduced the net farm emissions of the cooperative's dairy farms by an average of 15 percent. In addition, on average, Organic Valley farmers report engaging in 50 percent more pasture grazing than that required by the National Organic Program. ************************************************************************************ Real Organic Project Meets with Secretary Vilsack Farmers of the Real Organic Project met with Agriculture Secretary Tom Vilsack last week, discussing what the group calls the “organic problem.” The meeting followed a letter sent to Vilsack last month signed by 43 former members of the National Organic Standards board. The farmers told Vilsack, “the National Organic Program is in serious trouble because of the failure of the USDA to uphold the integrity of the Organic Standards.” The standards board is intended to represent a broad spectrum of interest groups. However, the group alleges, “The choices by the USDA are often skewed, with mid-level Agribiz managers oftentimes taking a farmer position.” In the last eleven years, the program has failed to successfully bring a number of key recommendations to rulemaking. The group’s April letter states, “This failure has led to real damage to trust in and the integrity of the organic program, as the NOP has failed to respond to serious challenges to the meaning of organic from industry.” ************************************************************************************ AEM Offers Insights on High Machinery Sales The Association of Equipment Manufacturers says there are several factors driving the current machinery sales trends. In the first quarter of 2021, total farm tractor unit sales are up more than 50 percent in the U.S., and nearly 60 percent in Canada. AEM’s Curt Blades says, “We're operating in a very interesting market right now.” Over the last 12 months, there’s been a rise in under 40 horsepower, or small tractor sales. Blades says, “This is due largely to a lot of the industries that have done very well during the pandemic." Small tractors fall into that category as well as sales are spiking largely in suburbs with larger lots to help homeowners with improving the property. However, starting later in 2020, larger row-crop and articulated 4WD tractors have also enjoyed increasing sales success. Blades adds, “Tractor sales are strong, commodity sales are particularly good, and optimism is at an all-time high in the farming community." ************************************************************************************ USA Rice: USDA Acreage Forecast Higher than Actual Acres Planted USA Rice says the Department of Agriculture’s acreage forecast for rice is higher than the actual acres planted. The USA Rice World Market Price Subcommittee met last week, to discuss supply and demand, rice stocks, and projected plantings. Subcommittee members from all six rice states reported expectations that actual plantings for 2021 will be significantly lower than those estimated by USDA in the March projected plantings, with a total projected difference of 15 percent less acreage, due to a range of weather issues. Following the Subcommittee meeting, Chair Keith Glover and USA Rice staff met with teams from the USDA National Agricultural Statistics Service, Economic Research Service, and World Agricultural Outlook Board departments. Glover provided feedback from Subcommittee members regarding NASS statistics, and reviewed the areas where members thought changes could be made. Glover states, “As always we were happy to meet with USDA to pass on input from our World Market Price Subcommittee.”
| Rural Advocate News | Tuesday May 25, 2021 |
Washington Insider: Infrastructure Negotiations Continue The White House has lowered its price tag on an infrastructure package to $1.7 trillion, down from an initial package of $2.25 trillion, as efforts to find bipartisan agreement on infrastructure spending continues. Republicans had offered up a $568 billion package which some Democrats dismissed immediately as woefully short of what is needed. Indications are Republicans may be willing to bump their offer up by some $250 billion, but even that may not be enough to win much support among Democrats. The offer to Republicans, White House Press Secretary Jen Psaki said, was made “in the spirit of finding common ground.” The offer, she noted, “exhibits a willingness to come down in size.” While the size of the package is one objection from Republicans, the other is how the administration wants to pay for the plan. One of the key ways to pay for the administration's package is an increase in the corporate tax rate to 28% from the 21% that Republicans put in place via their 2017 tax package. But touching the GOP tax package is a non-starter for many Republicans, including Senate Minority Leader Mitch McConnell, R-Ky., who said as much last week. “If they're willing to settle for a targeted infrastructure bill without revisiting the 2017 tax bill, we'll work with them,” McConnell said, but he noted a package of $2 trillion or more “is not going to have any Republican support.” Republicans, on the other hand, have suggested paying for their package in part by tapping unspent funds from the massive COVID-19 aid package. Other money could come from uncollected tax revenue or public-private partnerships. But Biden has continued to meet with Republicans even as those in his own party are warning him not to let Republicans just negotiate for an extended period of time. But that does not appear to be the case – that Biden will let the negotiations drag on for weeks or months. Biden will “change course” on the infrastructure plan if he can't get bipartisan support, White House senior adviser Cedric Richmond told CNN's State of the Union. "He wants a deal. He wants it soon, but if there's meaningful negotiations taking place in a bipartisan manner,” Richmond said. “He will not let inaction be the answer. And when he gets to the point where it looks like that is inevitable, you'll see him change course.” That change in course is going the reconciliation route which would allow Democrats to move the infrastructure deal forward without needing to have 60 votes in the U.S. Senate. Another factor which is chafing some on the Hill are items included in what is labeled infrastructure. Sen. Roy Blunt, R-Mo., has been involved in the negotiations with the White House, and said the price tag is one thing but that reflects the amount of various issues that are included. But this situation is unfolding as other countries around the globe are investing in their infrastructure. Brazil, for example, has focused their attention on improving the infrastructure for their soybean industry. Brazil's infrastructure minister has predicted a boom in development of the nation's highways, railways and airports on the back of $50 billion in investment in concession projects by the end of next year. “Brazil will become an immense construction site,” Tarcisio Gomes de Freitas told the Financial Times. “With the planned concessions, by the end of 2022, $50 billion will have been contracted in investments for the modernization of airports, ports, highways and railways. In other words, the equivalent of more than 30 years of the public budget for infrastructure,” he said. Indeed, Brazil has put $10 billion into an array of projects that include airports, seaports, rail lines to reach into the interior of Brazil and more. But Brazil is also looking at the infrastructure effort with an eye on climate change. The country current sees some 65% of their distribution system in trucking and only 15% by rail. Freitas said that connecting the interior of the country with Amazon River arteries would reduce up to 1 million tons of carbon dioxide. Brazil has production costs for their soybean that are very favorable compared with the U.S. But it's getting their crops to export channels that is their biggest cost factor. And they look at infrastructure as not only addressing that situation but also making their country more eco-friendly. Here in the U.S., infrastructure was hoped to be one of the topics that could find Republicans and Democrats working together. But so far, that hope is not being materialized, at least not to the point where the two sides are ready to put a package together that can get votes from both sides of the aisle. And that is part of the irony. Both Democrats and Republicans agree that infrastructure is something that benefits all Americans and it is not a partisan matter. Few can disagree that the nation's roads, bridges and rail system along with the lock and dams on the Mississippi River that move ag products to export locations are sorely in need of updates. Yet getting to that point where all can agree is moving at a slow pace. And that slow pace is coming while our foreign competitors continue to invest in what it takes to move their ag products in particular to export to the rest of the world. We shall see. If budget reconciliation ends up being the route for infrastructure spending, it will keep the fractured Washington in place. And that is something agriculture needs to monitor closely as they produce the crops, livestock and other ag products that would benefit considerably from improving the farm-to-market system, Washington Insider believes.
| Rural Advocate News | Tuesday May 25, 2021 |
Steel and Aluminum Import Tariffs Remain in Focus The Section 232 tariffs imposed on imports of steel and aluminum by the Trump administration are still in place and the Biden administration has not yet signaled they are ready to lift or alter those duties. A union and various steel industry groups are calling for President Joe Biden to keep steel tariffs in place. Leaders of seven groups wrote a letter last week addressed directly to the president on behalf of U.S. steel producers, fabricators, and workers emphasizing the impact that Trump's 2018 steel tariffs had on their industry. They said that the move was necessary because surges in steel imports threatened nearly 2 million domestic jobs. “Since the tariffs took effect, American steel producers have announced plans to invest more than $15.7 billion in new or upgraded facilities -- investments that are now beginning to bear fruit in the form of permanent, family-sustaining steel jobs and economic activity that supports communities across the United States,” the letter said. Meanwhile, the UK government has indicated it will put new tariffs on imports of U.S. wine, chocolate and lobsters as it rebalances the list of goods it will target for import duties the U.S. imposed on imports of steel and aluminum. The British trade ministry said the new tariffs would be aimed at "the needs of the UK economy and shaped to defend industries across the UK." No specific tariff rates were mentioned and the list published reflected a six-week consultation with businesses and other stakeholders.
| Rural Advocate News | Tuesday May 25, 2021 |
State Lawmakers Urge USDA to Conduct Another Beef Checkoff Vote A new producer referendum on the Beef Checkoff is being called for by 131 state lawmakers from 11 states. In a letter to USDA Secretary Tom Vilsack, the lawmakers said the $1-per-head assessment needs to be voted on again by producers. “This tax was voted on in 1985 under the auspices that the money raised would go to promote exclusively USA beef,” said in their letter. “Unfortunately, that money is being funneled away from its original intent and is being used by private associations and entities that do not exclusively represent USA beef.” It is not clear whether USDA will act on the request and whether there would be enough producer support for altering the checkoff if it were put to another vote by producers.
| Rural Advocate News | Tuesday May 25, 2021 |
Tuesday Watch List Markets Tuesday starts with attention on the latest forecasts and any export sales news that might arise. At 9 a.m. CDT, there are reports on April new home sales and a consumer confidence index in May. Weather Tuesday will bring scattered shower and thunderstorm activity to the central and southeastern Plains, central Midwest, far Northern Plains, Northwest, and Canadian Prairies. Rainfall will be mainly light; however, some locally heavy amounts are possible in the Plains storms. Other areas will be dry. Strong winds are also in store for the northern Plains during the afternoon.
| Rural Advocate News | Monday May 24, 2021 |
USDA Announces Plan for Black farmer payments The USDA says it plans to make debt relief available to Black farmers. The announcement came one day before Ag Secretary Tom Vilsack participated in a roundtable discussion with Black farmers in Georgia. A spokesman says Vilsack will be traveling to other states to discuss the plan in the weeks ahead. Late last week, the Farm Service Agency published the first notice of funding availability for loan payments for eligible borrowers who have qualifying direct farm loans under the American Rescue Plan. “The Plan has made it possible for USDA to deliver historic debt relief to socially disadvantaged farmers and ranchers beginning in June,” Vilsack says. “USDA is recommitting itself to gaining the trust and confidence of America’s farmers and ranchers using a new set of tools provided in the American Rescue Plan.” The Plan authorizes funding and authorization for the FSA to pay up to 120 percent of direct and guaranteed loan with outstanding balances as of January first of 2021. He says the tools are designed to increase opportunity, advance equity, and address systemic discrimination in USDA programs. To learn more about the loan payments to socially disadvantaged farmers, go to www.farmers.gov/americanrescueplan. *********************************************************************************************** SD/MN Senators Ask Colleagues to Sign onto Meatpacking Letter Senators Mike Rounds (R-SD) and Tina Smith (D-MN) wrote a letter to U.S. Attorney General Merrick Garland regarding the state of the U.S. meatpacking industry. They asked him to enforce or examine America’s antitrust laws to restore fairness in the marketplace for cattle producers and are asking their colleagues in both the House and Senate to sign the letter. The Hagstrom Report says the letter was released last week by R-CALF USA, which is launching an effort to get 200 members from both chambers of Congress to sign the letter. Producers want to know why boxed beef prices are rising while the prices they get for their cattle are stagnant. During an R-CALF USA Facebook Live event held last week, Rounds said it’s vital for producers to let consumers know about the industry’s issues. He’s also asking R-CALF members to put the letter out in front of consumers outside of their home states. South Dakota is one of nine states where livestock outnumber people. Rounds says those states support more market transparency, but those same states make up just five percent of the country’s population. Rounds says meatpackers currently sit in the middle of the situation, noting that the industry is controlled by only four companies. ********************************************************************************************** Reps Ask Biden Administration to Utilize USMCA Enforcement Measures A bipartisan group of representatives sent a letter to U.S. Trade Representative Katherine Tai and Ag Secretary Tom Vilsack regarding dairy and the U.S-Mexico-Canada Agreement. They’re asking the administration to move ahead with enforcement measures negotiated in the USMCA to support U.S. dairy farmers. A key part of the USMCA agreement was the promise of new export opportunities for America’s dairy industry, including the introduction of fairer trade rules to ensure American-made dairy exports can compete on a level playing field. The coalition says it’s crucial that the Administration hold U.S. trading partners accountable to their tariff commitments. So far, Canada hasn’t taken actions to alter its dairy tariff-rate quotas to bring them into compliance with the USMCA. That undermines the ability of American dairy farmers and producers to sell a wide range of products to Canadian consumers. The representatives say the immediate use of enforcement measures is necessary to ensure Canada delivers on their obligations in a way that’s fully consistent with the agreement. “USMCA made key advancements for our dairy farmers,” says Representative Ron Kind (D-WI). “However, I’ve long said trade agreements are only as strong as their enforcement, and we need to make sure our trading partners live up to their end of the deal.” ********************************************************************************************** Coalition Defends Gray Wolf Delisting A coalition of agriculture and forestry groups filed court motions in defense of delisting the gray wolf under the Endangered Species Act. Three cases filed by environmental and animal welfare groups in California challenge the final delisting ruling issued by the U.S. Fish and Wildlife Service last November. The coalition is defending the delisting because it recognizes the successful recovery of the wolf and enables responsible wildlife management and protection of private property by farmers, ranchers, and forest resource users. The coalition provided the court with personal stories that illustrate the harm inflicted by unchecked wolf populations on livestock ranchers and farmers, natural ecosystems, and other wildlife. A Minnesota farmer stated in the filing that he lost 26 calves in a single year to gray wolves. Groups in the coalition include the American Farm Bureau Federation, the American Forest Resources Council, the American Sheep Industry Association, the National Cattlemen’s Beef Association, and the Public Lands Council. Since being listed under the ESA in 1974, the gray wolf has exceeded recovery goals by more than 300 percent. This has been a runaway success story, with uncontrolled populations now threatening livestock and rural communities across the country. *********************************************************************************************** Hard Red Winter Wheat Tour Finishes Last Week The Wheat Quality Council’s 2021 Hard Red Winter Wheat Tour finished up last week. The total weighted average yield estimate was 58.1 bushels per acre, a likely tour record that DTN says far surpasses USDA’s national yield projection of 52.1 bushels per acre. It’s the highest tour yield estimate in 19 years and the best in the event’s history, which stretches back over 40 years. The tour made 250 stops in multiple fields, most of which were in Kansas. They did visit several fields in southern Nebraska and northern counties in Oklahoma. Kansas is the nation’s largest winter wheat producing state, and Kansas farmers planted 7.3 million acres last fall. Harvest will get underway in June. Kansas Wheat CEO Justin Gilpin says recent rainfall greatly helped to improve crop conditions after a dry early spring. He also says good prices prompted many farmers to closely monitor their crops for disease pressure and spray fungicides to keep the crop healthy. He was also quick to credit improved wheat genetics in helping plants better endure stress, such as drought. “Mother Nature has been good to the crop over the past two weeks with rain,” Gilpin tells DTN. “The yield estimate is a testament to wheat breeders and better genetics.” ********************************************************************************************** NCGA Soil Health Institute Will Close The Soil Health Partnership, a project of the National Corn Growers Association, is scheduled to close the doors for good on May 28. John Mesko, the groups senior director, says SHP has accomplished its original mission of determining the economic and environmental impact of conservation practices and communicating the importance of soil health to farmers and the agriculture community. “Despite our good work, the empirical on-farm research that SHP conducted is expensive,” Mesko says. “Add to that our high level of farmer-facing support, with field staff covering 16 states and a bona fide research and data analysis staff, and the current cost of SHP exceeds the existing levels of support.” In carrying out the mission, Mesko says they developed the best-in-class farm research protocols, farmer engagement strategies, and an elite suite of communication channels to tell the story. They also released key findings that included 2019 and 2020 cover crop planting reports, two published research papers, held several important webinars, and a study on the economic impact of conservation practices on farms.
| Rural Advocate News | Monday May 24, 2021 |
Washington Insider: Escalation in US-Canada Lumber Dispute The U.S.-Canada dispute over softwood lumber appears to be heading to an escalation. Bloomberg reported that the U.S. Department of Commerce issued new preliminary rulings on antidumping tariffs on Canadian softwood lumber imports that would double the current duties if implemented. The International Trade Administration calculated a preliminary duty of 18.32%, but the current amount of 8.99% is in effect as there has not been a final determination, a Commerce official said Friday. The final determinations will not be in place until later in the year. But the report will no doubt catch the attention of many in trade circles, particularly in Canada. But this is only the latest chapter in what has been a seemingly decades-long battle between the two sides. Both sides have traded trade actions over softwood lumber. Canada took a complaint to the WTO and in 2019, the world trade body said the U.S. had violated international trade rules in the way it calculated tariffs on Canadian imports of softwood lumber. That resulted in the current duty level of 8.99% which went into place in November, a trim from the level of 20.23% that had been in place. British Columbia has been the most vocal in the situation. "We find the significant increase in today's preliminary rates troubling," Susan Yurkovich, president of the British Columbia Lumber Trade Council, said in in a statement. "It is particularly egregious given lumber prices are at a record high and demand is skyrocketing in the U.S. as families across the country look to repair, remodel and build new homes." A big portion of U.S. lumber imports comes from British Columbia. As for the preliminary increase, the U.S. Lumber Coalition welcomed the development. "A level playing field is a critical element for continued investment and growth for U.S. lumber manufacturing to meet strong building demand to build more American homes," Jason Brochu, co-chair of the coalition, said in a statement. The National Association of Home Builders has urged the Biden administration to negotiate a new trade deal with Canada to secure supplies and halt further hikes, Bloomberg said. But the situation is not only a concern in Canada but also in the U.S. as the current duties have pushed up lumber prices at a time when residential construction has been on the rise. Low U.S. interest rates have translated into low mortgage rates. And with a low supply of homes on the market, new construction efforts have been rising. Permits to build new homes have been posting strong increases at an annualized rate each month even as the level of starts is not coming close to the potential level that would be signaled by permits. That is in no small part as lumber prices have risen dramatically. There has been a roughly 300% increase in lumber prices the past year. In fact, some builders and construction firms are bidding construction or addition jobs on a labor-only basis, saying that the materials cost will be what it costs. If the higher duties go into effect, that will cause another rise in building costs for renovations, remodelings, additions and new construction. Already, the higher lumber prices are prompting some to hold off on such projects, but the potential increase in tariffs on Canadian lumber could cause some to "bite the bullet" and go ahead with on-hold projects in a bid to get them rolling before even higher costs are seen. The situation has been interesting on the policy front. U.S. Trade Representative Katherine Tai told lawmakers she was eager to reach a softwood lumber agreement with Canada, being well aware of increased costs seen on the U.S. side of the border. But she also told lawmakers recently that Canada was not interested in any such agreement. But then after the Free Trade Commission meeting last week between the U.S., Mexico and Canada, Canadian Trade Minister Mary Ng told reporters she wanted to reach an agreement with the U.S. on softwood lumber. It is not clear why there appears to be a disconnect from the top trade officials in the two countries. But it is a disconnect that so far has not reached the point of the two sides setting time to sit down and discuss the matter in detail. So we will see. The current tariffs have boosted lumber prices at an inopportune time on this side of the border. It would be an accomplishment by Tai and the Biden administration if they were to put this dispute behind them with some kind of a resolution. But the length of time this dispute has run, positions may not be as easy to change. But it is a trade matter that agriculture needs to watch closely as it feeds throughout the U.S. economy and an escalation could prove damaging to the U.S.-Canada relationship on several fronts, Washington Insider believes, as history has shown that other sectors outside of those at the heart of a dispute can get snared as collateral damage.
| Rural Advocate News | Monday May 24, 2021 |
Appropriations Timing Set In House House Appropriations Committee action on the one dozen Fiscal Year (FY) 2022 spending bills is planned for a three-week period around the July Fourth recess, according to a report from CQ RollCall. Subcommittee markups would start June 24 and run through June 28--before the chamber exits July 1 for its break. A final subcommittee markup would be held July 12. In the full committee, markups would be held from June 29-July 1, with work resuming July 13-16. Given the timeline that House Majority Leader Steny Hoyer, D-Md., has laid out of wanting to get all the spending measures through the House by the August recess, it may mean several of the bills could be packaged together. Several hearings on FY 2022 budgets for various agencies are on tap this week and more will be coming after the Memorial Day break. So far, the FY 2022 USDA budget hearing has not yet been scheduled in either chamber.
| Rural Advocate News | Monday May 24, 2021 |
USDA Sets Payouts to Socially Disadvantaged Farmers in Motion USDA's Farm Service Agency (FSA) has released the initial notice of funding availability (NOFA) for eligible borrowers with direct loans under the Farm Loan Programs (FLP) or Farm Storage Facility Loan (FSFL) programs authorized by the American Rescue Plan Act of 2021 (ARPA). "FSA will pay 120% of direct loan balances outstanding as of January 1, 2021, for socially disadvantaged farmers and ranchers," the agency said. A subsequent notice addressing guaranteed loans and remaining loan balances will be published within 120 days of the initial NOFA that is expected to be published this week. All eligible direct loan borrowers are included in the initial NOPA "except those who no longer have collateral or an active farming operation," FSA said. "These borrowers often have more complicated cases and may not have the same opportunities to invest in their farming operation to manage tax liabilities. FSA expects these cases to account for approximately 5% of eligible direct loan borrowers. Procedures for payments to these borrowers will be addressed in a subsequent NOFA, which also will include eligible guaranteed loan borrowers." "Eligible Direct Loan borrowers will begin receiving debt relief letters from FSA in the mail on a rolling basis, beginning the week of May 24," FSA announced, with the agency indicating that effort will run through June. Those receiving the letters have to sign and return it to FSA. In June, FSA said it would begin to process signed letters for payment. "About three weeks after a signed letter is received, socially disadvantaged borrowers who qualify will receive 20% of their total qualified debt by direct deposit which may be used for tax liabilities or other fees associated with payment of the debt." Those payments will be issued on a "rolling basis," FSA noted.
| Rural Advocate News | Monday May 24, 2021 |
Markets Traders will catch up on the latest forecasts by Sunday evening and be attentive to any export sales news that arises. USDA's weekly grain inspections report is due out at 10 a.m. CDT. USDA's monthly cold storage report will be out at 2 p.m., followed by Crop Progress at 3 p.m. with new crop ratings for winter and spring wheat. Weather Light to moderate rain is in store Monday in the far Northern Plains and Canadian Prairies, offering more needed moisture. We'll also see light showers in portions of the central and southeastern Plains. Other primary crop areas will be dry. Temperatures will be seasonal to above normal, with notable heat in the Southeast.
| Rural Advocate News | Monday May 24, 2021 |
Monday Watch List Markets Traders will catch up on the latest forecasts by Sunday evening and be attentive to any export sales news that arises. USDA's weekly grain inspections report is due out at 10 a.m. CDT. USDA's monthly cold storage report will be out at 2 p.m., followed by Crop Progress at 3 p.m. with new crop ratings for winter and spring wheat. Weather Light to moderate rain is in store Monday in the far Northern Plains and Canadian Prairies, offering more needed moisture. We'll also see light showers in portions of the central and southeastern Plains. Other primary crop areas will be dry. Temperatures will be seasonal to above normal, with notable heat in the Southeast.
| Rural Advocate News | Friday May 21, 2021 |
Court Vacates Midnight Refinery Exemptions Biofuel groups hailed an order from the Tenth U.S. Circuit Court of Appeals vacating three small refinery exemptions granted to Sinclair the day before President Biden’s inauguration. The decision came promptly after the Environmental Protection Agency filed a petition asking the court to overturn the waivers on April 30. Sinclair responded on May 18 that it didn’t oppose the EPA request. “We’re pleased the court has vacated these improperly granted waivers and is sending them back to EPA for reconsideration,” says Renewable Fuels Association President and CEO Geoff Cooper. “If these exemptions had been allowed to stand, they would have erased RFS blending requirements for 260 million gallons of low-carbon renewable fuels.” He says it would also have destabilized rural communities and been a big step backward in the fight against climate change. National Corn Growers Association President John Linder says, “We look forward to working with EPA Administrator Michael Regan to uphold the Renewable Fuel Standard and appreciate his early action to change the EPA course when it comes to waivers.” *********************************************************************************************** EPA Will Keep Biofuel Mandates Steady in 2021-2022 Three sources familiar with the matter told Reuters that the Environmental Protection Agency’s biofuel blending mandates for this year and next will be in line with those from 2020. The agency is said to be accounting for weaker fuel demand since the onset of COVID-19. That would mean the U.S. refining industry would avoid added costs normally associated with the usual expansion in renewable volume obligations under the Renewable Fuel Standard. That will come at the expense of biofuel producers and the corn industry, which depend on regular increases to expand their businesses. The required amounts of biofuels that refiners must blend into the nation’s fuel supply usually increase annually in hopes of reducing foreign petroleum imports and helping the nation’s farmers. Former President Trump delayed the 2021 proposal because of COVID-19 and the 2020 election. The EPA says it intends to issue both the 2021 and 2022 volumes proposals later this summer. In the last ruling back in 2019, the EPA mandated that American refiners blend 20.09 billion gallons of renewable fuel into the nation’s fuel mix for the 2020 compliance year. That mandate included 15 billion gallons of conventional biofuels like ethanol. The upcoming volume proposals are expected to largely be the same amounts. ********************************************************************************************** Ethanol Production Tops One Million Barrels The Energy Information Administration says U.S. ethanol output topped the one-million-barrel mark for the first time in 14 months, while stockpiles also rose last week. Ethanol production jumped to an average of 1.032 million barrels a day in the week ending on May 14. The latest EIA report says that’s up from 979,000 barrels a day, on average, during the prior week and the highest level since March 13, 2020. The Midwest, by far the largest ethanol-producing region, saw its output come in at an average of 985,000 barrels a day, up from 940,000 the previous week. That’s the highest level since the week ending on February 28, 2020. Gulf Coast production jumped to an average of 20,000 barrels a day, up from 16,000 the previous week. Rocky Mountain output rose to 10,000 barrels a day from 8,000, and East Coast production rose to 7,000 barrels a day from 6,000 a week before. The West Coast was the only region where output didn’t improve, holding fast at an average of 9,000 barrels a day. Inventories rose, but only slightly, coming in at 19.4 million barrels last week, up from 19.39 million the prior week. *********************************************************************************************** USDA Releases 90-Day Climate-Smart Progress Report The USDA published its 90-Day Progress Report on Climate-Smart Agriculture and Forestry this week. The agency says it represents an important step toward President Biden’s Executive Order on Tackling the Climate Crisis at Home and Abroad and the shift towards a whole-of-department approach to solutions. “With the right tools and partnerships, American agriculture and forestry can lead the world in solutions that will increase climate resistance, sequester carbon, enhance agricultural productivity, and maintain critical environmental benefits,” says Ag Secretary Tom Vilsack. “At this pivotal time, the president has called upon USDA to develop a strategy for climate-smart agriculture and forestry as part of a whole-of-government effort to addressing the climate crisis.” He also says central to USDA’s approach is the concept that whatever the agency does must work for farmers, ranchers, and landowners. The goal is to combat the climate crisis and conserve and protect the nation’s lands, biodiversity, and natural resources like soil, air, and water. Through research, conservation practices, and partnerships, USDA is looking to find solutions to agricultural challenges, enhancing economic growth, and create new streams of income for farmers, ranchers, producers, and private foresters. More information on the progress report is available at www.usda.gov. ********************************************************************************************** First Long Flight Powered by Biofuels is Successful A coalition of companies came together to carry out the first long-haul flight powered by a renewable fuel called Sustainable Aviation Fuel. Air France Flight 342 took off from Paris and headed to Montreal with its tanks full of the renewable aviation fuel produced in French manufacturing plants. Renewable Energy Magazine says the flight is a tangible result of four groups that came together to decarbonize transportation and to develop a new supply chain for the fuel. The biofuel used for this flight was made from waste and residue sourced from the French economy. A company called Total produced the biofuel from used cooking oil at a biorefinery and a factory in France without using any virgin plant-based oil. The 16 percent blend of biofuels on this flight lessened the CO2 emissions by 20 tons. Air France-KLM is known as a pioneer for testing sustainable aviation fuels. In addition to this flight, French company Airbus is conducting several series of tests to certify that airliners can fly with 100 percent Sustainable Aviation Fuel. Benjamin Smith, CEO of Air France-KLM, says, “For many years, the Air France-KLM Group has been committed to reducing our environmental footprint. Supporting the emergence of an economically viable French aviation biofuel sector is a priority for our group and the country.” ********************************************************************************************** U.S. Chicken Producer Charged with Price-Fixing Claxton Poultry Farms Incorporated has been indicted in Colorado on charges of price-fixing broiler chickens produced for sale to restaurants and grocery stores. A Successful Farming Dot Com article says the U.S. Justice Department announced the charges on Thursday. The company’s president and vice president were previously indicted for their roles in a nationwide conspiracy to fix chicken prices from 2012 to 2019. If the company is found guilty, Claxton could be fined up to 100 million dollars or twice what it gained in the price-fixing. Claxton is based in Georgia and sells 300 million pounds of chicken every year to 750 customers, including some of the country’s biggest restaurant and grocery store chains. In February, Pilgrim’s Pride Corporation, one of the largest American poultry producers, pled guilty and was sentenced to pay $107.9 million to settle the federal charges that it conspired to fix chicken prices and passed on the costs to consumers and other purchasers. Pilgrim’s Pride is primarily owned by Brazilian meatpacker JBS SA.
| Rural Advocate News | Friday May 21, 2021 |
Washington Insider: Fed Sticking With Inflation View Fed officials met at the end of April and continued to hold to their view that the rise that was being seen at that point was "transitory" and would not be "more persistent than expected," according to minutes from the April 27-28 session. But that view may not be as universal as it seems or at least as universal as some Fed officials continue to insist. When the Fed issues the minutes from their meetings, they do not attach any names to comments and generally do not use any more than rather generic terms to describe the numbers that express a certain opinion. Terms like "some" or "few" or "many" are often used, leaving something to the imagination the actual number of Fed officials that think the way the comments indicate. And meeting recap dealing with inflation is case and point. The recap noted "some participants mentioned upside risks around the inflation outlook that could arise if temporary factors influencing inflation turned out to be more persistent than expected." When it came to their $120 billion per month purchase of bonds that aims to keep lending rates low and spur economic activity, their decision on when to begin tapering those purchases was notable. The decision to trim or "taper" those buys, would be one of the first actions by the Fed to tighten monetary policy -- make it more expensive to borrow money. The meeting recap noted that "some" emphasized their decision on the bond purchases would be determined by actual results, not on "uncertain economic forecasts." But there were "a couple of participants" who said the "risks of inflation pressures building up to unwelcome levels before they become sufficiently evident to induce a policy reaction." The Fed officials also noted the strong spending by consumers who were in part working off of stimulus dollars doled out by the government via the March COVID aid package. But that consumer spending is another potential inflation worry, according to the meeting recap. Rising consumer spending as the economy continues to reopen was another factor Fed officials said would likely "boost inflation temporarily, particularly if supply bottlenecks limited how quickly production could respond to demand in the near term." But even so, officials also "viewed these increases in prices as likely to have only transitory effects on inflation." As for when that discussion on tapering the bond purchases will start, "various participants" pointing out it would "likely be some time" before the Fed shifts from its stance that asset purchases will continue at least at the current pace until there is "substantial further progress" toward the Fed's goals. But the minutes also said that "a number" of Fed officials thought if the U.S. economy keeps posting rapid progress, that discussion on tapering the bond purchases would come at "upcoming meetings." That still leaves the Fed plenty of wiggle room on when that discussion will take place. But the rise in inflation may bring on that discussion faster than "some" Fed officials apparently think. There are five meetings of the Fed remaining this year -- June 15-16, July 27-28, September 21-22, November 2-3 and December 14-15. So we will see. The current monetary policy in place has kept interest and financing costs low for farmers, so the coming debate on those bond purchases is one that needs to be watched closely given the prospect that it will increase those borrowing costs and make them a rising, rather than falling, production expense, Washington Insider believes.
| Rural Advocate News | Friday May 21, 2021 |
Biden Budget Release Pushed Back By One Day The Biden administration's Fiscal Year (FY) 2022 budget proposals will not be released until May 28, according to the Office of Management and Budget (OMB), one day later than had been previously signaled. The budget release will be looked to for more details on the Biden tax and spending plans for FY 2022, including the $4 trillion the administration has proposed for infrastructure and social spending. And it will allow lawmakers on the Hill to really dig into the government funding issues ahead via the annual appropriations measures. And the situation will also factor into the efforts by Democrats to push through a budget resolution that will allow the use of budget reconciliation to bypass Senate rules that normally require 60 votes to get things like the $4 trillion in spending envisioned in the infrastructure and social plans.
| Rural Advocate News | Friday May 21, 2021 |
Court Invalidates Three SREs Granted Late By Trump Administration The Tenth Circuit Court of Appeals on Wednesday invalidated three small refinery exemptions (SREs) granted by the Trump administration to Sinclair Wyoming Refining Company, returning the matter to EPA for review. EPA sought the court action, arguing the SREs--one for the 2018 compliance year and two for the 2019 compliance year--had been fully examined. Sinclair declined to oppose the EPA request. Biofuel backers welcomed the action, with Renewable Fuels Association CEO Geoff Cooper hailing the court action as they agreed the waivers had been "improperly granted." While a victory for biofuel supporters, the biofuel waiver issue is currently before the U.S. Supreme Court following an earlier Tenth Circuit decision that invalidated three SREs for the 2016 compliance year. And EPA has said they will not act on any pending SREs until after the nation's top court issues its ruling. And the number of pending SREs continues to rise as EPA now shows there are 32 pending for the 2019 compliance year and 18 for the 2020 compliance year, an increase of two for both years.
| Rural Advocate News | Friday May 21, 2021 |
Friday Watch List Markets The latest weather forecasts have gotten a lot of attention in this week's markets and will again Friday. China's appetite for U.S. new-crop corn has also gotten a lot of press and traders will be watching for the possibility of a seventh consecutive purchase on Friday. A report on U.S. existing home sales for April is due out at 9 a.m. CDT. USDA's cattle on-feed report for May 1 is set for 2 p.m. CDT with analysts expecting roughly 11.58 million head, a modest drop from last month's 11.90 million head. Weather A stream of moisture from the Gulf of Mexico will produce a band of scattered showers arcing north-northeast from Louisiana and eastern Texas through Lake Superior on Friday. Additional showers and thunderstorms are expected across the Northern Plains with some late afternoon and evening thunderstorms in the High Plains, the latter of which could be strong to severe. Showers should continue to improve soil moisture and ease drought across northern areas that have been in desperate need over the last several weeks. Snow in western Montana will continue through the day and there will be some occasional showers in the West as well.
| Rural Advocate News | Thursday May 20, 2021 |
FFA Announces Hybrid Annual Convention The National FFA Organization announced Wednesday the organization will hold its annual in-person convention this fall in Indianapolis. The event, which traditionally brings more than 65,000 attendees, will take place October 27-30. Expected in-person events during the convention include the American FFA Degree Ceremony, Career Success Tours, competitive events, delegate business sessions, entertainment, the National FFA Expo and shopping mall, general sessions, student and teacher workshops, and the National Days of Service. In addition to the in-person event, the organization will also offer a virtual program, including student and teacher workshops, the virtual FFA Blue Room, National Days of Service and the streaming of general sessions. Dr. James Woodard, national FFA advisor, says, “We are excited to bring an in-person event back to our members and the city of Indianapolis.” In 2020, the organization canceled the in-person event due to the COVID-19 pandemic and instead offered a virtual experience. For more information, visit convention.FFA.org. ************************************************************************************ Produce Industry Sounds Alarm Over Pallet Shortage The United Fresh Produce Association says pallet shortages are disrupting the produce supply chain. The organization says the lack of pallets is adding stress to a supply chain that is already facing significant challenges. Other supply chain issues include a lack of available trucks and shipping containers, labor challenges and a pending shortage of resin used to make reusable containers and pallets. Expectations are that the pallet shortage will continue for months, perhaps for the balance of 2021. The shortage of lumber and wood products has increased the cost of raw lumber 200 percent to 350 percent and makes the cost of wood pallets increase incrementally. Some report over the past few weeks, pallet costs have increased more than 400 percent, if the pallets are even available. The organization warns that without ensuring pallet availability for produce shipments, "there is little doubt that it will be very difficult, if not impossible,” to meet consumer produce demand. ************************************************************************************ USDA Announce Cosby as NRCS Chief The Department of Agriculture Wednesday announced the appointment of Terry Cosby to serve as chief of the Natural Resources Conservation Service. Cosby began his career with USDA in 1979 as a student trainee in Iowa. Over Cosby's 42 years with the agency, he has served in numerous capacities, most recently, Acting Chief of NRCS and State Conservationist for Ohio. Cosby also served in leadership positions at the agency in Iowa, Missouri and Idaho, before his time in Ohio. The National Association of Conservation Districts welcomed the announcement. NACD President Michael Crowder says of Cosby, “His extensive experience in conservation as a farmer, a sportsman and state conservationist will further strengthen NRCS’s impact on the nation’s land.” USDA also announced Meryl Harrell as deputy undersecretary for Natural Resources and Environment. Harrell most recently served as the Executive Director of the Southern Appalachian Wilderness Stewards. Both will assume their positions Monday, May 24. ************************************************************************************ Meat Institute Responds to DOJ Investigation Calls The North American Meat Institute this week defended its members against allegations of wrongdoing in the cattle market. The response follows a closed-door meeting between livestock and farm groups focusing on ways to improve cattle market transparency and a letter from Republican lawmakers to the Department of Justice. The lawmakers requested DOJ continue its investigation regarding cattle market manipulation. In reaction, Meat Institute spokesperson Sarah Little told the Hagstrom Report, “In July 2020, USDA analyzed the effects of the 2019 Holcomb facility fire and the pandemic, finding no wrong-doing and confirming the disruption in the beef markets was due to devastating and unprecedented events.” She pointed to several announcements to build new packing facilities or expand capacity that will increase cattle slaughter capacity roughly four percent. In the letter to DOJ, the group or republican lawmakers state, “while black swan events do not always prove wrongdoing, additional attention can reinforce confidence in the system.” ************************************************************************************ NIFA Invests Over $2.3M for Small Business Innovation Research The Department of Agriculture this week announced a $2.3 million investment as part of the USDA Small Business Innovation Research Program. USDA’s National Institute of Food and Agriculture recently awarded eight grants totaling $812,900 to small businesses to improve plant production and protection. Additionally, NIFA awarded eight grants totaling $797,600 for animal production and protection, and seven awards totaling $706,100 for conserving natural resources. NIFA Director Dr. Carrie Castille says the program, "stimulates technological innovations in the private sector and strengthens the role of federal research and development in support of small businesses." Funded plant production projects include research into domestic vanilla production, blueberry pollinators and plant-based proteins. Animal production projects include vaccine research, testing animal feed for quality and herd reproductivity data. Finally, conservation projects include fertilizer and irrigation research. The next Phase 1 request for Small Business Innovation Research applications is scheduled to open in July 2021, with a deadline in October 2021. Learn more at nifa.usda.gov. ************************************************************************************ Application Period Open for Conservation Innovation Grants Program The Department of Agriculture’s Natural Resources Conservation Service is investing up to $15 million to support the development of new conservation tools and practices. Specifically, NRCS is seeking new tools, approaches, practices and technologies to further natural resource conservation on private lands through the Conservation Innovation Grants program. USDA says CIG partners use creative problem solving and innovation to address our nation’s water quality, air quality, soil health and wildlife habitat challenges, all while improving agricultural operations. This year, funded grant partners will focus on climate-smart strategies for water resources, soil health, nutrient management, grazing lands conservation and strategies to increase conservation adoption. NRCS intends to expend at least ten percent of the total funding for CIG Classic on projects that are focused on providing conservation benefits to historically underserved producers. All U.S.-based non-Federal entities and individuals are eligible to apply. Proposals must be submitted through Grants.gov before July 20, 2021.
| Rural Advocate News | Thursday May 20, 2021 |
Washington Insider: USMCA Sessions End With No Major Breakthroughs The first meeting of the Free Trade Commission (FTC), a panel established under the U.S.-Mexico-Canada Agreement (USMCA) is now history, taking place the first two days of this week. The first day saw U.S. Trade Representative Katherine Tai meet one-on-one with Canadian Trade Minister Mary Ng and separately with Mexican Economy Minister Tatiana Clouthier. Those discussions saw Tai raise several issues, but the readouts from the parties involved did not signal any new or major breakthroughs were scored. Tuesday saw the three trade chiefs meet together and get presentations from various working group committees that were established under USMCA. Those panels provided various updates on issues and developments they were responsible for. One of the concrete developments that emerged came from the panel that met on small and medium-sized enterprises. That resulted in the setting up a session October 13-14 in San Antonio, Texas, for a "dialogue" on issues for those businesses. So that is at least a positive. The joint statement released by the three countries was long on the usual phrases that mark these kinds of meetings -- the talks were labeled "robust" and the three held discussions in which they said they would "recommit to fully implementing, enforcing, and fulfilling the Agreement's terms and high standards throughout the life of the USMCA." On issues of labor and environment, ones where Tai was expected to push her counterparts to think about putting a climate change component into the deal, those talks were termed "robust, forward-looking discussions." But again, that offers little in terms of substance regarding how the Canadians or Mexicans received what Tai was expected to bring up. Reports also indicate Mexico raised matters on automotive content rules under USMCA and Mexico called on the U.S. to review its ground transportation rules that provide Mexican truckers access to the U.S. market. The U.S. raised labor issues during sessions, noting that recent matters raised by both the U.S. and Mexico show "how well this can be used by both countries." On key ag trade topics, there was also little signs there was progress made. The U.S. filed a case late in the Trump administration which charged Canada was not fulfilling its commitments on implementing import quotas for dairy. Tai acknowledged that case in testimony last week before the U.S. Congress, but it's not clear any headway was made -- Ng related she signaled Canada believes it is implementing the provisions in USMCA when it comes to dairy. As for issues such as Mexico's policies on glyphosate and GMO corn, reports indicate that Mexico's economy ministry the country "reiterated its commitment to ensure compliance with the obligations assumed in the chapter on Sanitary and Phytosanitary Measures, as well as to promptly address any problems or concerns that may arise." There also appears to be a difference of opinion between the U.S. and Canada on the issue of softwood lumber, another long-running dispute between the two that has seen the U.S. impose duties on imports of softwood lumber from Canada. Reports said that Ng she pressed the U.S. on its "unwarranted and unfair" tariffs on imports from Canada and the country would defend the sector and also sought to reach some kind of agreement. Interestingly, Tai told U.S. lawmakers last week that she, too, wanted to find some kind of agreement with Canada, but our neighbors to the north were not interested in negotiating. To be fair, the first meetings involving all three trade chiefs from the three countries should not have been expected to have all of the issues raised by each country resolved. That would have been a major development. But a session like this was more than likely used by each official as a way to "test the waters" and get a read on the official that will be on the other side of the table when it comes to really negotiating on these issues. That's when the statements of "robust" or "productive" talks could take on additional meaning. For example, an agreement suddenly on something like softwood lumber would have been shock since that dispute has been around for a long, long time. Keep in mind, this was also the first FTC meeting ever. So all three officials were probably feeling their way a bit relative to what they could -- or perhaps more importantly, couldn't do. So we will see. The trade issues that existed before the meeting are still there. And it appears there was little ground given by any of the officials. That means these will remain issues to be dealt with along with others that could also come to light in coming weeks and months. So these are clearly matters that farmers need to monitor closely, especially ones that deal with dairy, GMOs and glyphosate, Washington Insider believes.
| Rural Advocate News | Thursday May 20, 2021 |
Lawmakers Introduce Plans To Block Administration's 30x30 Plan Sens. Roger Marshall, R-Kan., and Kevin Cramer, R-N.D., have introduced the 30x30 Termination Act, a measure aimed at blocking the Biden administration's 30x30 plan that would seek to conserve 30% of land and water by 2030. Under the Biden administration's 30x30 plan, America the Beautiful, the program stresses voluntary conservation and expansion of USDA's conservation programs. Republicans, however, have portrayed the plan as an attempt to force conservation measures onto private landowners. The legislation prevents a number of actions on public and private land in the name of conservation, according to Marshall's office. "Land ownership is a core right protected by the Constitution and we cannot allow radical environmentalists who are in the driver's seat on 30x30 dictate what happens on our land. This initiative is further proof of the clear disconnect between the left and those who feed, fuel, and clothe the world," said Marshall. The measure would nullify the executive order being used to put the 30x30 initiative in place and blocks any funds from being spent to carry out the initiative among other provisions. Freshman Rep. Lauren Boebert, R-Colo., has introduced companion legislation in the House.
| Rural Advocate News | Thursday May 20, 2021 |
House Ag Chair Working On Disaster Aid Fund at USDA The U.S. government needs to be able to respond more quickly to natural disasters that affect agriculture that accompany climate change, House Agriculture chairman David Scott, D-Ga., remarked during a "member day" hearing the panel held Tuesday. "Many of our farms are done away with because we move too slow" in drafting and passing relief bills, he said. "We are working on a bill to set up a permanent disaster aid that is already there, that we can get help down to our farmers." Scott noted the possibility of such a fund at USDA after another lawmaker on the panel said he wanted to get losses for 2020 included in the Wildfires and Hurricane Indemnity Program Plus (WHIP-Plus). "Just let me tell you, this is an issue we are grappling with on the committee … disaster aid is so critical," said Scott. "I'm trying to put together an effort to create a separate immediate disaster aid fund, so it doesn't have to go the regular appropriations process (which) takes too long." He added that "this climate is really causing us to come up to our challenges." However, it is not clear yet how any permanent disaster fund would impact the crop insurance program.
| Rural Advocate News | Thursday May 20, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT, along with U.S. weekly jobless claims and an update of the U.S. Drought Monitor. Traders will pause at 8 a.m. to see if China signs up for more new-crop corn. An index of leading U.S. indicators will be out at 9 a.m., followed by the Energy Department's weekly report of natural gas inventory at 9:30 a.m. CDT. Weather Drought-easing precipitation is in store Thursday in the northern Midwest, northern Plains and Canadian Prairies. The moisture will occur mostly as rain with some snow. We'll also see a wide swath of light rain from the western Midwest south to the Texas-Louisiana Gulf Coast. Other primary crop areas will be dry.
| Rural Advocate News | Wednesday May 19, 2021 |
Lawmakers Urge DOJ to Continue Cattle Industry Investigation Lawmakers from South Dakota this week led an effort urging the Department of Justice to continue its investigation into the nation’s four biggest meatpackers. Republican Senator John Thune and Republican Representative Dusty Johnson also requested that DOJ provide Congress with updates on its investigation and encouraged ongoing vigilance. The lawmakers write, “It is critically important that producers have fair and transparent markets for the commodities they produce.” The letter comes as last week a group of six livestock and farm groups held a rare meeting unifying the diverse backgrounds of the organizations focusing on cattle market transparency. The National Cattlemen’s Beef Association welcomed the letter. NCBA Vice President of Government Affairs Ethan Lane says, “We have a high supply of cattle at one end of this equation and a high demand for U.S. beef at the other, but the middle is being absolutely choked by the lack of processing capacity.” ************************************************************************************ USTR Raises Ag Concerns with Mexico, Canada U.S. Trade Representative Katherine Tai raised agriculture concerns with Mexico and Canada on the sidelines of the Free Trade Commission of the United States, Mexico and Canada meeting Monday. A readout document posted to the USTR website noted Tai engaged with counterparts from Canada and Mexico. Regarding Canada, Tai stressed, "the importance of Canada fully meeting its USMCA commitments, including its allocation of dairy tariff-rate quotas and home-shopping.” They also discussed softwood lumber and WTO reform and agreed to continue collaborating on addressing these issues and others. As for Mexico, Tai emphasized the importance of several issues, including science- and risk-based regulatory approaches in agriculture, access for U.S. fresh potatoes to all of Mexico, and an immediate resumption of authorizations of agricultural biotechnology products in Mexico. The U.S., Canada and Mexico, this week took part in the inaugural meeting of the trade commission. The meeting helps all three countries discuss cooperation and trade issues regarding USMCA. ************************************************************************************ Drought Forces California Farmers to Leave Fields Empty For some farmers in California, there's not enough water to grow a crop this year. Bloomberg News reports farmers north of San Francisco are not participating in farmers' markets or produce box programs and are leaving fields empty. California grows one-third of U.S. vegetables and two-thirds of U.S. fruits and nuts. Normally, California receives the bulk of its water needs from the winter season. However, the current drought has diminished the supply, leaving growers of specialty crops without enough water, as the La Nina weather pattern pulled winter storms away from the state. Nearly all of the 11 states in the U.S. Drought Monitor western region are suffering from some form of drought. Much of the southwest is in an extreme or exceptional drought classification. In the Four Corners states, the last 12- and 24-month periods were both the driest on record for the region. And, the western fire season, typically starting in the summer months, is already underway. ************************************************************************************ West Texas Cattle Ranch to hit International Marketplace The massive Turkey Track Ranch hits the international market later this year. After 120 years, the family owners have decided to sell the near 80,000 acres of ranchland, known as the Prize of the Panhandle. Land brokers representing the ranch state, “It is simply revered and respected for being good, diverse, stout, and solid. It is both beautiful and productive and has been well managed at every level.” Located in the Texas panhandle, the ranch is one of the largest in the state. The Whittenburg and Coble families, current owners of the ranch, state, “Due to our family's increasing numbers and geographical distances, we recognize that it is time to find a new steward for this historic holding.” The Turkey Track Ranch was first established around 1878, making it one of the first five ranches in the Texas Panhandle. The property is also the site of the two famed battles of the Adobe Walls of 1864 and 1874. ************************************************************************************ Piglets Pay the Price of Mom’s Heat Stress Piglets born to heat-stressed sows may carry the burden of their mother’s discomfort later in life in the form of health complications and diminished performance. Now, this so-called "in utero heat stress" may also hypersensitize the piglet’s immune system, potentially doing more harm than good to the young animals, according to the Department of Agriculture’s Agricultural Research Service. Pigs are more susceptible to heat stress due to an inability to sweat. This places them at greater risk of health and production problems that can add up to millions of dollars annually in revenue losses to swine producers. Research has shown that pigs experiencing heat stress during pregnancy can predispose their offspring to complications later in life that can lead to diminished performance, including efficient feed use, growth rate and ultimately, pork production. However, less is known about how heat stress affects their offspring’s innate immunity. The USDA research is helping the industry learn more. ************************************************************************************ Bayer COO Begemann Retires Bayer this week announced that Brett Begemann, Chief Operating Officer for Crop Science, will retire from his role after 38 years with the company. Rodrigo Santos, currently Head of Crop Science Commercial Operations for Latin America, will succeed Begemann and assume global responsibility for the division's commercial organization. During his tenure with the company, Begemann held several global and regional leadership positions and had responsibility for global commercial and operations teams at Monsanto before the acquisition by Bayer. As President and Chief Operating Officer at Monsanto Company, he led global efforts to increase manufacturing and supply chain efficiency, as well as the company's growth agenda. Santos, a Brazilian national, has spent over 23 years with the company and has led the Latin American Crop Science business for Bayer since the integration of Monsanto and Bayer in 2018. Earlier in his career, Santos worked in sales, marketing, strategy and business development roles, including a leadership role in Eastern Europe.
| Rural Advocate News | Wednesday May 19, 2021 |
Washington Insider: The Push for Electric Vehicles A key part of the climate goals by the Biden administration is reducing and eventually eliminating vehicle emissions. That is part of a $174 billion push to put more electric vehicles on U.S. roads by the Biden administration. President Joe Biden traveled to Dearborn, Mich., to see firsthand the new Ford F-150 picking that is electric powered, not using an internal combustion engine. But even that push by Ford drew some comments by Biden about the prospects that EVs could be built in other countries and brought back into the U.S. "We need automakers and other companies to keep investing here in America and not take the benefits of our public investments and expand electric vehicles and battery manufacturing abroad," Biden said, a reference to Ford rival General Motors announcing plants to make a $1 billion investment in building EVs in Mexico and Ford opting to build some EVs in Mexico versus Ohio. But even as Biden got to drive the F-150 that will formally be unveiled on Wednesday, it was still camouflaged so that no one could get an early peek at the new truck. Rather than using consumer incentives for high-priced vehicles, Reuters reported that the White House wants to use government spending "to prod Americans to buy electric vehicles." Rebates and tax credits are the usual routes used to financially encourage consumers to buy something like an EV that can be more expensive than a traditionally gasoline-power vehicle. But there are consumer rebates involved in the push for them to purchase EVs -- $100 billion of the $174 billion effort is for such rebates. More spending on battery facilities and technologies is also planned as a way to bring the cost of the EVs down. There has been a $7,500 tax credit for the purchase of EVs, but White House Climate Adviser Gina McCarthy told Bloomberg TV that Biden is looking to "actually provide consumer rebates at the point of sale." She argues that will make it more likely that lower or middle-income Americans might be able to afford the vehicles. One of the keys for EVs, however, is charging stations. There are currently less than 100,000 of them in the U.S., and few if any in more remote areas of the country. And the cost of putting those charging stations in place will be a key one with the administration wanting Congress to approve funding to put 500,000 of them in place. But many point out even that many charging stations will not be enough to meet an aggressive push for EVs. The other issues for EVs that consumers will need to be convinced of will include their range. Currently, there is about a 250-mile range for EVs, a range that works fairly well for urban settings. But that may temper interest in areas where consumers have to drive for distances to get even basic services. The recharging time will also be important even if there are more charging stations available. And for those in northern climates, there is the issue of winter travel. Currently, internal combustion engines provide heat to keep vehicle passengers warm. In EVs, providing heat takes extra battery power and reduces the travel range. By putting an EV pickup together in the form of the best-selling F-150, Ford is clearly trying to woo what may well be one of the more difficult-to-convince customers: Farmers. They rely on vehicles and at times need to travel at a moment's notice. And having to charge a vehicle first or fully to do that could be a major hurdle. But those championing EVs contend there will be better and better battery technology ahead that will address these issues. But then the same argument was made on cellulosic ethanol which has failed to reach that key "commercially viable" stage. And then there is the matter of replacing gasoline-powered vehicles, something which means less ethanol being used. And that is raising more than a few concerns with farmers who have helped in the push for ethanol over the years. So we will see. EVs are clearly going to be in the U.S. vehicle mix ahead and will increase in numbers and use. But the broad deployment of those vehicles is coming. And with that will come challenges and opportunities, matters which agriculture will need to monitor closely, Washington Insider believes.
| Rural Advocate News | Wednesday May 19, 2021 |
Antitrust Push On Beef Packers Lawmakers and attorneys general from several states are pushing the Department of Justice (DOJ) to continue their investigation the four largest meatpackers in the U.S. In a letter to Attorney General Merrick Garland, a bipartisan group of House and Senate members called on DOJ to continue the investigation of "improper and anticompetitive activities in the live cattle and beef industry" that was launched one year ago. They cited a lack of information from the investigation, noting "there is no information to even suggest whether the investigation has concluded or is still ongoing." They called for the continuation of the investigation and requested an update on the situation. Cattle producers and small producers in particular are continuing to see difficult conditions, the lawmakers said. "It is critically important that producers have fair and transparent markets for the commodities they produce," the letter stated. "We urge the DOJ Antitrust Division to continue vigilance and where possible, provide updates of findings."
| Rural Advocate News | Wednesday May 19, 2021 |
Bilaterals Marked First Day Of US-Mexico-Canada Agreement Confab U.S. Trade Representative Katherine Tai met with both Canadian Minister of Small Business, Export Promotion and International Trade Mary Ng and Mexican Secretary of Economy Tatiana Clouthier on the first day of two days of meetings under the Free Trade Commission established under the U.S.-Mexico-Canada Agreement (USMCA). With Ng, Tai pressed on issues relative to Canada "fully meeting its USMCA commitments, including its allocation of dairy tariff-rate quotas and home-shopping." The Trump administration brought the dairy case in late 2020 and Tai has said she will seek to use negotiation with Canada to move the issue forward. Ambassador Tai also expressed concern about Canada's recently proposed digital service tax, according to a readout of the session from the Office of the U.S. Trade Representative (USTR). "They also discussed softwood lumber and WTO reform," the statement said. However, the dairy issue was not mentioned in a similar readout of the session released by Canada, with Ng raising issues with Tai on the U.S. Buy American effort. With Clouthier, Tai raised several "ongoing issues," the readout of their session said, including "science- and risk-based regulatory approaches in agriculture; access for U.S. fresh potatoes to all of Mexico; an immediate resumption of authorizations of agricultural biotechnology products in Mexico; an energy policy that respects U.S. investment and is consistent with efforts to tackle climate change; and enhanced trade facilitation efforts." Mexico's labor situation was also an issue broached along with U.S. investigations into Mexican agricultural products, according to a recap from Mexico.
| Rural Advocate News | Wednesday May 19, 2021 |
Wednesday Watch List Markets Traders will check the latest weather forecasts early and, given China's recent appetite for new-crop corn, will stop at 8 a.m. CDT to see if USDA has another sale announcement. The U.S. Energy Department has its weekly energy inventory report at 9:30 a.m., including ethanol production. Minutes from the most recent Federal Reserve Open Market Committee meeting will be released at 1 p.m. CDT. Weather Moderate to heavy rain is in store from the southeastern Plains through the Coastal Bend Wednesday. The heavy rain will cause flooding and will be unfavorable for crops. Farther north, light rain will cover much of the western and southern Midwest. Dry northern crop areas remain in line to receive moisture as rain and snow beginning Thursday.
| Rural Advocate News | Tuesday May 18, 2021 |
Trade Officials Begin USMCA Summit Trade talks are underway between the U.S., Mexico and Canada, as part of a two-day summit regarding the United States-Mexico-Canada Agreement. The agreement is nearing its first anniversary, and there are a handful of issues of concern. Politico reports there are continuing labor concerns between the U.S. and Mexico and trade barriers in place by Mexico and Canada. Farm groups have concerns over recent policies by Mexico, including decisions against genetically modified corn and the use of glyphosate, along with concerns over a new Mexican food labeling law aimed at combating obesity. Regarding Canada, the U.S. dairy industry claims Canada is placing barriers to U.S. products and wants Canada to open markets more quickly. U.S. Trade Representative Katherine Tai told lawmakers last week those issues should be explored, because USMCA includes mechanisms to do so. However, Tai cautions, it’s too early to say if Canada has violated its dairy commitments included in the agreement. ************************************************************************************ Dairy Groups Seek Broad Focus on Pricing Reform Five Midwestern dairy groups evaluating solutions to federal milk pricing issues recently sent their comprehensive focus to Agriculture Secretary Tom Vilsack. The groups seek a broad scope of focus should there be a Federal Milk Marketing Orders emergency hearing about reform. In April, the groups announced a proposal called Class III Plus, aimed at creating long-term stability in fluid milk pricing and reducing the likelihood of negative producer price differentials. Class III Plus would tie the Class I price to the Class III skim milk price plus an adjuster and do away with advanced pricing. The letter states, "We believe in order reform, but we would prefer to tackle more than just Class I pricing if we are going to go to the trouble and effort of having a hearing with national scope.” The groups include the Dairy Business Association, Edge Dairy Farmer Cooperative, Minnesota Milk Producers Association, Nebraska State Dairy Association and South Dakota Dairy Producers. ************************************************************************************ Land Values Near 2014 Peak Average sales prices for high-quality land in many states are at or near the peak prices last seen in January 2014, according to Farmers National Company's internal estimates to be released in June. Land values have taken a sizable jump the past six months, and the new levels reflect that move. For instance, the company says the June 2021 value for Illinois will be $12,300 per acre versus $12,500 per acre in January 2014. The estimated price per acre in Arkansas was $5,000 at the start of 2014 and is now $5,600. Ohio was $8,000 per acre and is now $8,150 per acre. Each January and June, Farmers National Company publishes its estimates of the average sales price for better quality cropland observed in each of eighteen states. The estimates are intended to show the trend in land sale prices in each state and not reflect individual sales that may be higher or lower. ************************************************************************************ Farm Profit Projections Mixed Through 2030 The Department of Agriculture's Economic Research service projections for farm profits are mixed through 2030. USDA ERS provides forecasts for net cash farm income and net farm income, two major profitability indicators of the agricultural sector. Net farm income is a broader measure of farm sector profitability that incorporates noncash items. Net cash farm income includes only gross cash income minus all cash expenses. For last year, ERS forecasts net farm income to be at $123 billion, which was $31 billion more than the 20-year average, and net farm income at $139 billion. Further projections estimate these profitability indicators to rise in 2022, then level off through 2030 because of a projected increase in production expenses. In 2030, both measures of farm income are projected to be lower than their 2020 forecasts. Net farm income is projected to remain slightly higher than the recent 20-year average, but net farm cash income is projected to be lower for 2021-30. ************************************************************************************ NRECA Calls for Federal Clean Energy Tax Credit The National Rural Electric Cooperative Association and other industry groups seek a federal clean energy tax credit. In a letter to lawmakers, the groups ask for support of tax policies that will allow public power and electric cooperatives to fully utilize direct pay for renewable and clean energy tax credits. President Joe Biden has set ambitious targets for reducing greenhouse gas emissions from power generation, transportation, and other sources. The groups say reaching the goals will be a daunting challenge for community-owned electric utilities. All the increased costs associated with reshaping their generation profile will burden customers and consumer-owners. The letter says allowing public power utilities and rural electric cooperatives to receive tax credits as direct payments for building clean energy infrastructure would ensure that all utilities serving Americans would have equal access to federal resources. The direct payments would be used to help offset project costs for public power utilities and rural electric cooperatives. ************************************************************************************ Pipeline Outage Sparks National Average Gas Price Increase For the fourth consecutive week, the national average price of gasoline increased, posting a 6.4 cent per gallon gain from a week ago to $3.03 per gallon. The national average now stands 16.8 cents higher than a month ago and $1.17 per gallon higher than a year ago. The national average price of diesel increased 6.3 cents in the last week and stands at $3.17 per gallon. The jump was largely attributed to the Colonial Pipeline shutdown. GasBuddy’s Patrick De Haan says, "With the pipeline now back in service, I expect prices to come down in the hardest-hit states." De Haan says the drops should lead the national average to fall back under the $3 per gallon mark. But, he cautions, “prices may start to head higher in a few weeks should Memorial Day gasoline demand be red hot.” The most common U.S. gas price encountered by motorists was $2.89 per gallon, up 20 cents from last week.
| Rural Advocate News | Tuesday May 18, 2021 |
Washington Insider: Tariffs Talks Between U.S. and EU The use of tariffs as a trade tool is one that has been around for decades. And, so too has the concept of pausing those tariffs. The Biden administration touted the four-month suspension of tariffs in the long running disputes over large civil aircraft between the U.S. and the European Union (EU) and the U.S. and UK. The U.S. tariffs against the EU and UK were imposed by the Trump administration with the backing of the WTO. The U.S. had successfully challenged the subsidies provided to Airbus by certain EU countries. As is usually the case, the WTO scaled back the level of tariffs that the U.S. could impose. There was a delay in the EU putting retaliatory tariffs in place after they also won a WTO ruling against subsidies they maintained were provided to Boeing. The underlying dispute over large civil aircraft dates back some 16 years. It took until early 2020 for the U.S. to be able to hit the EU with tariffs. The EU followed up later in 2020 which prompted another response from the U.S. to broaden the level of tariffs. Then in March this year, the U.S. and EU and separately the U.S. and UK announced a four-month suspension in tariffs as they try to reach a solution in the long-running disputes. Last week, U.S. Trade Representative Katherine Tai said she fully expected the four-month period would result in a solution. Considering that we are now halfway through the four-month cease fire, that could be an optimistic statement by Tai. After all, some argue that outside of the tariffs, there would really not be a reason for the parties involved to actually resolve the disputes given the length of time where a deal could have been reached. Others still argue that perhaps the "fresh" look at the disputes by the Biden administration might just be enough to push the issue to the finish line. And now there is another tariff suspension that has popped up, this time the EU pledging now to impose higher tariffs on a host of U.S. goods as a response to U.S. Section 232 tariffs on imports of steel and aluminum. USTR Tai did not give any hint that a suspension was potentially in the cards from the EU when she testified to House and Senate panels last week. And lawmakers raised the issue of those higher tariffs that loomed as of June 1. But these are not the first uses of suspensions of tariffs. Recall that China hit U.S. agricultural products with tariffs in response to U.S. Section 301 tariffs against China that hit a host of products. But, China itself suspended those tariffs last year as they sought to boost imports of U.S. goods, purchases that were outlined in the Phase One agreement between the U.S. and China. So it is clear that tariffs have been used in trade actions, but so have suspensions of tariffs as countries seek to achieve a certain goal or at least cool tensions to allow officials to negotiate in earnest to figure out solutions. So we will see. The use of tariffs is not likely going away and there is no sign the U.S. is ready to pull back tariffs imposed by China. But ag interests should watch the situation closely as tariff suspensions can at least provide some relief and could set the stage for trade resolutions or successes, Washington Insider believes.
| Rural Advocate News | Tuesday May 18, 2021 |
USITC Votes To Continue Probe Into Imports Of India Organic Soymeal The U.S. International Trade Commission (USITC) Friday (May 14) unanimously voted to continue the investigation into the import of organic soymeal from India. The USITC said there is a "reasonable indication that a U.S. industry is materially injured by reason of imports of organic soybean meal from India that are allegedly subsidized and sold in the United States at less than fair value." The U.S. Department of Commerce will continue its investigations of imports of organic soybean meal from India, with its preliminary countervailing duty determination due on or about June 24, 2021, and its preliminary antidumping duty determination due on or about September 7, 2021. The USITC will issue a report after June 14 on views of the agency and information it gathered during the investigation.
| Rural Advocate News | Tuesday May 18, 2021 |
More Time to Provide Info to USDA on Climate Actions USDA's Agricultural Marketing Service (AMS) Monday published a notice in the Federal Register that extends the comment period for 30 days relative to its request for comments on Supply Chains for the Production of Agricultural Commodities and Food Products. AMS published the request April 21 and sought public comments by May 21. But based on requests from stakeholders and organizations for "additional time to provide thoughtful and thorough feedback to this request." Specifically, AMS said it received requests from "representatives of critical supply chain activities whose comments would be of great value." Comments are now due June 21. It is not surprising that USDA is allowing more time for comments since their request was very broad -- supply chains for the production of ag commodities and food products. That cuts a very wide swath and USDA asked for comments on any aspects of that, including which current programs and policies could be deployed on that front.
| Rural Advocate News | Tuesday May 18, 2021 |
Tuesday Watch List Markets A report on U.S. housing starts in April is due out at 7:30 a.m. CDT Tuesday, followed by USDA's Livestock, Dairy and Poultry Outlook at 11 a.m. Traders will stay close to the latest weather forecast and any export sales news that emerges. Weather Tuesday brings another day of rain from the central Plains and mid-Mississippi Valley to the Coastal Bend. Amounts will vary; however, heavy totals with flash flood potential are indicated from the southeastern Plains to the Coastal Bend. Other primary crop areas will be dry. Temperatures continue to show notably warmer trends in most areas.
| Rural Advocate News | Monday May 17, 2021 |
Mississippi River Reopens to Shipping The U.S. Coast Guard said there were over 1,000 barges backed up along the lower Mississippi River late last week. The Coast Guard stopped all traffic on the river near Memphis, Tennessee, after a fracture was discovered in a bridge that carries traffic over the river. The good news is barge traffic was allowed to resume last Friday. The U.S. Coast Guard issued a statement saying that “Based on the information provided to us by the Tennessee Department of Transportation, the Coast Guard has determined that transit under the I-40 bridge is safe for maritime traffic,” says USCG Captain Ryan Rhodes, the Captain of the Port of Memphis. Mike Steenhoek (STEEN-hook) of the U.S. Soy Transportation Coalition says, “This is obviously good news. We look forward to seeing barge traffic on the Mississippi River back to normal conditions soon.” Steenhoek also notes that the U.S. can be increasingly described as a spending nation, not I hope that this situation will spur efforts to produce a comprehensive infrastructure investment strategy that addresses the needs of both urban and rural America.” ********************************************************************************************** Bronaugh Confirmed as USDA Deputy Secretary Ag Secretary Tom Vilsack says he’s grateful for last week’s confirmation of Dr. Jewell Bronaugh as Deputy Secretary of the USDA. “Dr. Bronaugh’s confirmation is historic, as she will serve as the first black woman and woman of color to be named Deputy Secretary,” Vilsack says in a statement. “Dr. Bronaugh has a long, distinguished career as an educator and champion for farmers and rural communities.” She most recently served as the 16th Commissioner of the Virginia Department of Agriculture and Consumer Services, where she worked to expand opportunities for small and midsized farmers and ranchers to obtain infrastructure and processing capabilities. Bronaugh also developed strategies to meet environmental and water quality goals for Chesapeake Bay. “She speaks respectfully of producers and rural Americans, and believes that as a public servant, her job is to find a way to help those who need it,” Vilsack adds. “I look forward to working with Dr. Bronaugh to help ensure that USDA lives up to its calling to be a department that serves all people equally and fairly.” ********************************************************************************************** Land Grants, Extension to Teach Rural America About Vaccines The USDA says that land-grant universities and the Cooperative Extension System will step up educational efforts to improve COVID vaccine confidence in rural America. The announcement comes as the Centers for Disease Control says that fully vaccinated people don’t need to wear masks for most outdoor and indoor activities. The new educational effort will use a $9.95 million CDC grant given to the Ag Department’s National Institute of Food and Agriculture. “Cooperative Extension agents are recognized and trusted messengers in their communities and can help deliver fact-based information on the COVID-19 vaccine and other adult vaccines,” says Jay Butler, CDC deputy director for infectious diseases. NIFA Director Carrie Castille (Cas-STEEL) says, “Cooperative Extension has a century of experience as change agents and educators in communities across America. NIFA is proud to be the federal partner with such a trusted education resource, but especially in this effort to deliver science-based vaccine education.” The Hagstrom Report says a “Facts Not Fear” website, developed by Extension staff, contains a curated collection of culturally appropriate resources from the CDC, the National Institutes of Health, Johns Hopkins, and USDA. ********************************************************************************************** Effort Underway to Stop Iowa’s E15 Mandate A new effort is underway in Iowa to stop a proposed fuel mandate from becoming law. KCCI-TV in Des Moines says beginning in 2026, Governor Kim Reynolds’ mandate will require E15 to be sold at every gas station in the state. A group against requiring gas stations to sell E15 is trying to get drivers to rally behind them in the fight against the bill. The group calls itself The Fuel Choice Coalition, and it’s plastering stickers on pumps at many convenience stores and gas stations. The stickers say, “Iowa lawmakers are taking up a law that will result in higher gas prices,” and they also feature a QR code that helps drivers send an email against the move to legislators. The opponents say the bill will force gas stations to make expensive upgrades to their tanks, which will cause fuel prices to “skyrocket.” They note that 1,500 sites in the state would have to spend anywhere from $300 million to $800 million, a cost that will have to be “passed on to consumers.” However, farmers support the legislation, saying it will help improve the ag economy that Iowa depends on. ********************************************************************************************** Kansas City Southern Makes New Railroad Deal Canadian National Railroad outbid Canadian Pacific in its attempt to buy the Kansas City Southern Railroad. Global News says Kansas City Southern determined that CN’s revised bid of $33.6 billion was better than the $25 billion it had already gotten from Canadian Pacific. The new CN offer includes $200 in cash for each KC Southern share, but Canadian National upped its offer of 1.129 shares of its stock. The transaction also includes about $3.8 billion in Kansas City Southern’s debt. Canadian National’s President says the combined railroad will connect Canada with the U.S. and Mexico and take advantage of the expected growth in trade between the three nations in the U.S.-Mexico-Canada Agreement. KC Southern had been reviewing both bids and holding talks with both potential buyers since CN got involved with the bidding last month. So far, Canadian Pacific has declined to up its offer for KC Southern. CP officials say the Canadian National deal will have trouble getting approved by regulators concerned about the deal’s impact on competition. CP says combining KC Southern and Canadian National would hurt competition because they both have rail lines that compete for business between the Midwest and the Gulf Coast. Canadian Pacific’s network connects to KC Southern near its headquarters, but the two railroads don’t overlap elsewhere. *********************************************************************************************** Lamb Board Launches Outdoor Cooking Adventures Campaign The great outdoors and grilling are favorites of many people across the country. The American Lamb Board wants to help consumers make the most of their outdoor adventures by launching the American Lamb Outdoor Cooking Campaign. The recipe contest challenges outdoor enthusiasts to showcase their outdoor cooking prowess with American lamb in short videos. The board also partnered with chefs, pitmasters, and outdoor cooking experts to develop and share a variety of American Lamb recipes and videos for grilling, smoking, and over-the-fire cooking. “We’re so excited about all the opportunities this campaign has to put the spotlight on our great American-raised meat,” says Gwen Kitzan, ALB Chair. “Earlier this spring, our consumer poll earned an exceptional amount of media coverage, and now we’re implementing the recipe collection that adds video excitement to the mix.” The new campaign section is available on the American Lamb Board website at www.americanlamb.com. Consumers can also download or order copies of the new Outdoor Cooking Adventures recipe booklet that features six new lamb recipes for everything from ribs to burgers to kabobs.
| Rural Advocate News | Monday May 17, 2021 |
Washington Insider: Focus on Inflation Continues A pair of inflation reports last week beat expectations to the upside, signaling that inflation may be building in the U.S. economy. And the situation remains a focus across the U.S. economy -- from Washington to Main Street. As the Biden administration has pushed through the $1.9 trillion COVID aid in March that was in addition to some $900 billion that lawmakers agreed to in December, inflation was cited as a potential impact from the big fiscal outlays. Federal Reserve officials have continued to insist that the situation with inflation will be "transitory" -- in other words, not big enough nor sustained enough for them to have to tighten monetary policy to cool down the economy. Even as both the reading on inflation at the consumer -- the Consumer Price Index (CPI) -- and at the wholesale level -- Producer Price Index (PPI) -- came in above expectations and put the annual rate of inflation much above where market expectations were, the Fed did not change its tune. At the White House, Bloomberg reports that President Joe Biden's top advisers are sensing there is a growing political challenge ahead from the spike in inflation, "even as they see little immediate peril to the economy from price increases that officials expect will last through the rest of the year." They point to the rise in inflation coming for items like used cars, air travel and hotels. The price rise in April for rental cars was the sharpest for the used car index since that data began being kept in the 1950s. Some argue that the shortage of computer chips for new cars has dried up or severely curtailed their availability, forcing those needing a new vehicle to turn the used car market. But the White House also views the surge in prices as being from pent-up demand being unleashed as consumers emerge from the COVID pandemic, "That's different from a sustained pick-up in inflation, they argue," according to Bloomberg. Besides the Fed, Treasury Secretary Janet Yellen has said she it not concerned about the rise in inflation. But she is monitoring it closely, Bloomberg said. Markets have also taken note. The S&P 500 dropped sharply on the release of CPI data, but turned around to post gains on Thursday and Friday. Plus, bond yields also retreated after a recent rise. Both are being taken as a sign that markets are not overly concerned about the inflation bump. What the situation has prompted, Bloomberg said, is that the administration are now "mulling ways to better explain the rise in prices to the American public, while backing away from putting any specific time frame on when the price volatility will end." And therein comes the political situation. Republicans are already taking note of the big rise in inflation and are readying it as one of their tools/talking points for the midterm elections in 2022. But some Democrats are also sounding the alarm. Former Treasury Secretary Larry Summers and economist Jason Furman are sounding concerns about the situation. "I'd love to see them tilt a notch toward concern about inflation, but I think they'll mostly be doing more to explain this away," Furman, the head of the Council of Economic Advisers under President Barack Obama said last week on Bloomberg TV. The administration hears all the concerns, and officials are bracing for a potentially difficult time ahead as they contend with rising inflation and figure out how to explain it in a way that will ease consumer worries. Already, consumer sentiment declined recently with some linking it to the rise in inflation. Council of Economic Advisers Chair Cecilia Rouse on Friday took part in a White House briefing and cautioned that the months ahead could be "choppy" in terms of inflation. "There's going to be a period, as supply starts to equal demand and sectors are healing and recovering" that features some "choppiness," Rouse said. "We're making good progress" in restarting economy, but there's still "a long way to go," she said. There are about $4 trillion reasons that the Biden administration is watching the inflation situation as closely as they are as that is the amount of additional spending the White House wants Congress to approve in the form of $2.25 trillion for inflation and $1.8 trillion for social spending. If consumers become spooked by rising prices, that could sour support for another big installment of government spending. So we will see. Agriculture is also seeing price inflation, but it is somewhat welcome for the sector as commodity prices lifted higher as 2021 has progressed as demand for commodities has been strong and there are supply concerns in some key areas around the globe. The rise in prices is rebuilding the financial health of the U.S. ag sector. But if the inflation picture gets out of hand and it is enough to prompt the Fed to tighten monetary policy, a rise in interest rates could easily eat up the commodity price gains as costs would rise for farmers, Washington Insider believes.
| Rural Advocate News | Monday May 17, 2021 |
USTR Tai Signals She Will Raise Several Trade issues With Mexico, Canada The first meeting of the U.S.-Mexico-Canada Agreement (USMCA) Free Trade Commission will be a busy one as U.S. Trade Representative Katherine Tai listed several items she will raise in the meeting as she testified last week before U.S. congressional trade panels. Mexico's GMO and glyphosate actions, Mexican labor issues and Canadian dairy actions are all items Tai said she will be raising with her counterparts from Mexico and Canada in the first meeting of the Free Trade Commission this week. On other trade areas, Tai still did not shed a lot of light on the U.S. trade focus ahead nor provide lawmakers with additional information on the U.S. worker-centric trade policy. She did not provide much more on the timeline for Trade Promotion Authority (TPA) which expires in July and did not give lawmakers a significant update on prospects for U.S.-Kenya or U.S.-UK trade negotiations that were started by the Trump administration.
| Rural Advocate News | Monday May 17, 2021 |
USDA to Make Big Seafood Buy USDA said it will purchase up to $159.4 million in domestically produced seafood, fruits, legumes, and nuts for distribution to a variety of domestic food assistance programs, including charitable institutions -- the largest purchase of U.S. raised seafood by the USDA to date. The purchases will be done using authority under Section 32 of the Agricultural Adjustment Act and is "one of many actions USDA is taking to address the disruptions in the food system supply chain and worsened food insecurity resulting from the COVID-19 pandemic," USDA said. USDA Secretary Tom Vilsack noted the fisheries and seafood sector have been dealt a "heavy blow" from COVID and this action is one of many efforts to address those effects. Selected commodities include: Alaska pollock, apricots (canned, dried, and frozen), chickpeas, dry peas, Gulf of Mexico and South Atlantic wild-caught shrimp, lentils, navy beans, Pacific pink shrimp, Pacific rockfish fillets, Pacific whiting fillets, pistachios, prepared peaches, and sockeye (red) salmon. The inventories of these commodities are in high oversupply due to a decrease in demand because of the COVID-19 pandemic and disruption in the supply chain, as restaurants and other outlets closed during the pandemic.
| Rural Advocate News | Monday May 17, 2021 |
Monday Watch List Markets Traders will check the latest weather forecasts to start the week and pause at 8 a.m. CDT to see if USDA has any export sales news. China has been putting in early claims on U.S. new-crop corn. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT. The National Oilseeds Processors Association will release its member estimate of soybean crush in April later Monday morning. USDA's Crop Progress report is set for 3 p.m. and is likely to show another active week of planting progress for row crops. Weather Showers and thunderstorms with locally heavy rain will cover much of the southern Plains, southern and eastern Midwest, and the Delta Monday. The rain will be favorable for crops; however, some flash flooding and severe storm intensity are also possible in the southern Plains. Meanwhile, dry areas of the northern Plains and northern Midwest have a high to extreme fire threat due to very warm, dry and windy conditions.
| Rural Advocate News | Friday May 14, 2021 |
Agrisafe Launches Agristress Network AgriSafe Network this week announced the launch of the AgriStress Response Network. The launch coincides with May as mental health awareness month. The network includes agriculture professionals committed to sharing non-proprietary information, ensuring that resources and training are widely disseminated to reduce farmer and rancher stress. The effort seeks to eliminate the stigma of seeking support for mental health, including depression, anxiety and farmer suicide. AgriSafe says research shows 20 percent of any population has mental health complications, including farmers and ranchers. Stigma and privacy concerns associated with mental health issues may mean that many people do not seek out available behavioral health services. Many of the factors that affect agricultural production are largely beyond the control of the producer. For example, isolation, variability in weather, lack of access to health services, and low commodity prices, could have a direct impact on the rise in mental health issues. Learn more about the network at agrisafe.org. ************************************************************************************ Farm Credit Conditions Show Additional Strength Agricultural credit conditions in the Tenth District of the Federal Reserve continued to strengthen in the first quarter of 2021. After a sharp rebound at the end of 2020, conditions in the broad agricultural economy continued to improve alongside additional increases in crop prices. Stronger profit potential for farm borrowers supported a second consecutive quarter of significant increases in farm income, loan repayment rates and farmland values, according to the Kansas City Federal Reserve Bank. Overall, farm borrowers in the district were in a better financial position than at the beginning of 2020, but the pace of improvement was notably slower for livestock producers and for producers in areas affected by severe drought. Cattle prices remained below pre-pandemic levels in the first quarter, and the scope and severity of drought was a major concern in western states. The Tenth District includes portions of Missouri and New Mexico, along with Colorado, Kansas, Nebraska, Oklahoma and Wyoming. ************************************************************************************ Lawmakers Introduce Bill to Restore Forests and Grasslands A group of Senators Thursday announced the Joint Chiefs Landscape Restoration Partnership Act of 2021. The legislation would formally authorize the Department of Agriculture’s Joint Chiefs’ Landscape Restoration Partnership Initiative to better support forest and grassland restoration projects across public and private land. The lawmakers say the bill supports voluntary restoration projects across ownership boundaries, so that treatments can occur across a landscape. Since USDA launched Joint Chiefs in 2014, the initiative has supported 93 projects, treated 300,000 acres of hazardous fuels, restored 29,000 acres in watersheds, and enhanced 200,000 acres of wildlife habitat. The legislation would formally establish the program at USDA, double its funding to help meet demand, and improve outreach and accountability. Senators Micheal Bennet, a Colorado Democrat, and John Hoeven, A North Dakota Republican, introduced the bill in the Senate. House Democrats Abigail Spanberger of Virginia and Joe Neguse, along with Republican Kelly Armstrong of North Dakota, introduced the bill in the House. ************************************************************************************ United Fresh and PMA Members Approve of New Organization The Produce Marketing Association and United Fresh Produce Association held a member vote this week to seek approval to move forward in creating a single new organization. The new organization, announced earlier, this year will represent the global produce and floral communities. Each organization solicited votes from their members, and both reported full confidence in the initiative. The member vote was the final step in approval to dissolve each organization at end of year to incorporate a new association launching January 1, 2022. PMA and United Fresh have indicated that the next priority will be to create the organization’s new structure focused on best serving the industry’s needs and goals. Members can expect an update on the staff team, volunteer leadership structure, and business plans for 2022 in the coming months. Based on the member vote, both associations will now honor the membership status of the other organization when registering for events and programs. ************************************************************************************ USDA Purchasing Oversupplied Commodities for Food Assistance Programs The Department of Agriculture will purchase up to $159.4 million in domestically produced seafood, fruits, legumes, and nuts for distribution to a variety of domestic food assistance programs. The purchases, announced Thursday, are being made with funds under the authority of Section 32 of the Agricultural Adjustment Act. Agriculture Secretary Tom Vilsack says, “These healthy, nutritious food purchases will benefit food banks and non-profits helping those struggling with food hardship.” The inventories of the included commodities are in high oversupply due to a decrease in demand because of the COVID-19 pandemic and disruption in the supply chain, as restaurants and other outlets closed during the pandemic. Within a few days of approval, USDA’s Food and Nutrition Service will offer these commodities to their networks. Orders should be received during the first week of June with solicitations being issued mid-June and awards occurring near the end of the month. Deliveries should start to occur by mid-August. ************************************************************************************ Memphis Meats Rebrands as UPSIDE Foods, Plans Cultured Chicken Production Cultured meat company Memphis Meats announced this week a rebranding to UPSIDE Foods. The move comes as the company prepares to produce its first consumer product, cultured chicken. Uma Valeti, CEO and founder of UPSIDE Foods, says, "the evolution to UPSIDE Foods communicates our passion and potential to make our favorite foods healthier for the planet." The company released the world's first cultured meatball in February 2016 and the world's first cultured poultry in March 2017. Cultured chicken products will be available to consumers later this year, pending regulatory review. Grown from animal cells, the UPSIDE chicken cultivated without the need to raise an animal, and is not a plant-based meat alternative. To create the products at scale, UPSIDE Foods has broken ground on a pilot plant in the San Francisco Bay Area. The first custom-built for meat cultivation, the end-to-end facility will produce, package and ship cultured meat all under one roof.
| Rural Advocate News | Friday May 14, 2021 |
Washington Insider: Hope for an Infrastructure Deal Republican senators emerged from a meeting with President Joe Biden expressing some optimism on the prospects there could be a bipartisan deal on infrastructure. Republicans have resisted Biden's plan for $2.25 trillion for "infrastructure," arguing the package proposed by the White House is not just limited to infrastructure. Sen. Shelly Moore Capito, R-W.Va., has emerged as the "point person" on the matter for Republicans having publicly called for Biden to listen to Republicans on the situation even when members of his own party are urging the president to go it alone and let the party use the budget reconciliation tool to get it done. Under budget reconciliation, it removes the requirement a package get 60 votes in the Senate in order to pass. Given the 50-50 margin in the chamber, it is an understandable push. A bipartisan counter-offer to Biden of $568 billion in infrastructure spending -- a package compiled by not just Republicans -- was rejected out of hand by most Democrats. But Biden agreed to meet with the lawmakers to see if and what kind of a deal could be reached with Republicans. And he has done so with some in his party warning they won't sit by and let Republicans negotiate and negotiate on the topic. Some Democrats believe Republicans would deploy that tactic only in the end to say no deal could be had. But Republicans were not disheartened after their session with Biden at the White House. "We think this infrastructure package can carry forward," Capito said. "The president has asked us to come back and re-work an offer so that he can then react to that, and then re-offer to us." Biden himself was positive coming out of the session. "We had a very, very good meeting," he told reporters in the Rose Garden, according to Bloomberg. "It was great to be back with so many of the colleagues that I had served with in the Senate. And I am very optimistic that we can reach a reasonable agreement. But even if we don't, it's been a good faith effort that we started." But the road ahead remains a rocky one potentially, with Senate Majority Leader Mitch McConnell, R-Ky., emerging from a Wednesday session with Biden as saying the GOP has a "red line" on the Biden proposal to use an increase in corporate taxes as one of the ways to pay for the infrastructure deal. Even moderate Sen. Joe Manchin, D-W.Va., has expressed resistance to the 28% corporate tax rate proposed by Biden. Manchin has favored a tax rate no higher than 25% on companies and Biden recently said he was open to a discussion on that tax level. And there are signs, Bloomberg said, that Biden may be willing to break the package up. "There are increasing signs the bill would be split up if a bipartisan agreement on some infrastructure measures did emerge," Bloomberg said. "That would leave Biden to try to advance some or all of the rest of his proposal without Republican support." But what appears more and more likely is that to get bipartisan support for an infrastructure plan, there may need to be a refocusing of the effort on the traditional definition of infrastructure -- roads, bridges, railroads, locks and dams and the like. The crack that appeared in one of the supports on a key bridge on I-40 that crosses the Mississippi River could become a factor in the debate. While the bridge has been closed indefinitely, it means there will be automobile and truck traffic that get diverted to other routes to cross the river. But the other key is that the Mississippi River has also been closed to barge traffic, right at a time when U.S. ag products are being moved to export locations. So we will see. Infrastructure has long had an air of bipartisanship to it. And there are signs that could be the case this time around. Given the importance for agriculture of infrastructure to get their products to market and export channels, this situation needs to be watched closely, Washington Insider believes.
| Rural Advocate News | Friday May 14, 2021 |
USTR Tai Provides Some Additional Insight On Biden Trade Plans U.S. Trade Representative Katherine Tai spent much of her appearance this week before the Senate Finance Committee defending and explaining the administration's newly adopted position of backing a waiver of intellectual property (IP) rules at the WTO relative to COVID vaccines. Republican lawmakers took the greatest exception to the shift, warning of what they viewed as an action to turn over U.S. IP to foreign countries, including Russia and China. While Tai did not specifically address the concerns relative to China and Russia, she continued to frame their administration's stance as one of wanting to expand COVID vaccines and save lives. Ag trade issues did not get a lot of focus in the session and even China was not a major attention point for lawmaker questions. More attention was put on issues with Mexico and Canada, ones that Tai pledged would be raised next week at a meeting of the U.S.-Mexico-Canada Agreement (USMCA) Free Trade Commission. Those include Mexico's announced ban on glyphosate, GMO corn and softwood lumber and dairy issues with Canada. On China, Tai reiterated that the U.S. is continuing to approach the situation by engaging allies and she also referenced the top-to-bottom review of U.S. trade policies with China. Tai still has not shed a great deal of light on the Biden administration's trade focus, including on a U.S.-UK trade deal. She did acknowledge there are still "very critical issue areas" that are open in those negotiations, and there is "quite a road to go there." That suggests there is not yet a focus on pushing those negotiations forward as she related she is still wanting to think through how to construct such a trade accord.
| Rural Advocate News | Friday May 14, 2021 |
EPA Plans Public Hearings On WOTUS This Summer, Fall EPA will conduct public information gathering sessions this summer and fall relative to its plans to revisit the navigable waters rule, Radhika Fox told lawmakers during her confirmation hearing to be Radhika Fox's confirmation hearing before the Senate Environment and Public Works Committee to be the assistant administrator for the EPA's Office of Water. She said EPA will seek to learn from the "wisdom, the voice, and the lived, practical experience of people in complying with our rules." That echoes remarks from EPA Administrator Michael Regan who said the agency was seeking to revisit the issue and he also has pledged EPA will not keep the Trump version of the rule in place nor will they return completely to the Obama-era Waters of the U.S. (WOTUS) rule. "Administrator [Michael] Regan and I want an enduring definition of waters of the U.S., one that can withstand administration changes," she added. The WOTUS rule was a flashpoint for many in U.S. agriculture and fed the Trump replacement of the rule. Ag interests will be following the process closely to make sure that a return to the Obama-era rule does not unfold.
| Rural Advocate News | Friday May 14, 2021 |
Friday Watch List Markets A report on U.S. retail sales for April is due out at 7:30 a.m. CDT Friday, followed by the Federal Reserve's report on April industrial production at 8:15 a.m. The University of Michigan's consumer sentiment survey for April is set for 9 a.m. Traders will keep close watch on the latest weather forecasts. Friday is also the final day of trading for May grain futures. Weather Light rain showers are in store for portions of the western Midwest Friday. The rain area expands into the central and southern Plains later Friday. Areas with rain will have useful crop moisture. Drought areas of the northern and far southwestern Plains along with the Northwest and Canadian Prairies have very little rain indicated.
| Rural Advocate News | Thursday May 13, 2021 |
USDA WASDE Report Released The Department of Agriculture released its latest World Agriculture Supply and Demand report Wednesday. USDA says the corn crop is projected at 15.0 billion bushels, up from last year on higher area and a return to trend yield. The yield projection of 179.5 bushels per acre is based on a weather-adjusted trend assuming normal planting progress and summer weather. The season-average corn price received by producers is projected at $5.70 per bushel, up $1.35 from a year ago when much of the crop was marketed at lower prices. The soybean crop is projected at 4.4 billion bushels, up 270 million from last year on increased harvested area and trend yields. With lower beginning stocks, soybean supplies are projected down three percent. The season-average soybean price is projected at $13.85 per bushel, up $2.60 from last year. The outlook for U.S. wheat is for smaller supplies, higher domestic use, lower exports, and reduced stocks and a season-average farm price of $6.50 per bushel. ************************************************************************************ Study Shows Consumer Attitudes on Cultivated Meat Global research released this week shows consumers are open to pivoting to cultivated meat in the future. The study was released by Aleph Farms, a cultured meat startup based in Israel, with an office in the United States. Their research claims many consumers were not familiar with cultivated meat. Yet, upon being presented with a description, the respondents, on average, imagined that cultivated meat could make up about 40 percent of their future meat intake, with conventional meat constituting around 60 percent. The survey included roughly 2,000 U.S. consumers and 2,000 UK consumers. In addition, the study showed patterns of greater openness to trying such products by younger generational groups: 87-89 percent of Gen Z adults, 84-85 percent of Millennials, 76-77 percent of Gen X, and 70-74 percent of Boomers were at least somewhat open to trying cultivated meat. An Aleph farms representative states the organization's vision "is to provide a better alternative to industrial livestock farming.” ************************************************************************************ Report Offers Farmer Insight on Data Collection and Sharing Several challenges prevent farmers from collecting and sharing data on their production practices. However, there is ample opportunity to empower farmer’s digital transition, according to new research from Farm Journal’s Trust In Food initiative and the Sustainability Consortium. Farm-level production data plays a critical role in conservation and sustainability efforts. Previous research shows only eight percent of food and beverage companies who could report data said they have visibility into on-farm practices. More than half of all respondents, 64 percent, said they do not rely on-farm management information systems exclusively. Almost a third of respondents, 28 percent, said their primary data storage method is paper or another non-digitized method. Of those that do not use digital, only half have considered transitioning to digital. Additionally, 73 percent of respondents do not trust private companies with their data, and 58 percent do not trust the government with it. Conversely, 71 percent do trust their financial institutions with data. ************************************************************************************ April 2021 Farm Tractor Sales Grow Over Already-Large 2020 Gains U.S. farm tractor unit sales continue double-digit growth rate in both the U.S. and Canada, and inventories continue to fall, after a strong month of April. U.S. total farm tractor sales rose 22.7 percent in April compared to 2020, which was the first month of the current sales growth trend, while U.S. combine sales fell 3.2 percent. U.S. tractor sales grew across every segment, with the biggest gains in the 100 plus horsepower segment, up 29.2 percent. For Canada, April monthly tractor and combine sales were positive across all segments, with the four-wheel-drive segment nearly doubling, up 93.3 percent to 201 units sold, while total farm tractor sales were up 72.3 percent. Combine sales also grew 23.1 percent. Curt Blades, Senior Vice President of Ag Services at the Association of Equipment Manufacturers, says, “Seeing the larger row-crop units leading the way in segment gains shows the pull rising commodity prices have been having on equipment sales.” ************************************************************************************ U.S. and Mexico Keep Organic Trade Open Mexico last week agreed to extend the deadline for U.S. organic exports to be certified to its Organic Products Law. U.S. Agriculture Secretary Tom Vilsack met with his counterpart, and they agreed to extend the compliance deadline to December 31, 2021. Through 2021, USDA-certified organic products may continue to be exported, but on January 1, 2022, organic products exported from the U.S. to Mexico must be certified to the Organic Products Law standard. Secretary Vilsack this week commented on the deadline extension, “This is another important step for American agriculture and for maintaining positive bilateral relations between the United States and Mexico, one of our most important export markets.” Mexico’s Organic Products Law and regulations for organic production were implemented in April 2017. The regulations require all organic products sold in Mexico to be certified under the Mexican organic standards or to a standard that has been deemed equivalent under an organic equivalency arrangement. ************************************************************************************ Farmers for Sustainable Food Marks Transformation of Conservation Alliance An alliance created five years ago to support and promote farmers in their conservation efforts has reached a new level. The Dairy Strong Sustainability Alliance this week announced its transformation into Farmers for Sustainable Food. The group is a nonprofit organization that provides resources, advocacy, support and empowerment for farmers who are innovating and demonstrating sustainable farming practices. The transition marks a change to a broader focus, more innovative projects, and a diverse set of partners, according to a news release.” Farmers for Sustainable Food President Todd Doornink says, ”Our focus is on uniting stakeholders to collaborate across organizational lines, inspiring farmers to be leaders of change and empowering our partners to meet their goals.” The organization closely supports six farmer-led watershed conservation groups encompassing 211 farms, nearly 300,000 acres and 212,000 cows, hogs and other livestock. The organization and its partners are also developing on-farm initiatives to test ways of measuring sustainability and documenting the impact of conservation practices, both environmentally and financially.
| Rural Advocate News | Thursday May 13, 2021 |
Washington Insider: USDA Winding Food Box Program USDA this month is winding down a program launched by the Trump administration in an effort to help farmers that saw markets disappear for their products during the pandemic, CNN is reporting. They launched the Farmers to Families Food Box Program at the height of the pandemic and it delivered nearly 167 million boxes of fresh food to families in need and helped farmers sell their produce at a time when supply chain disruptions forced them to dump milk and destroy their crops. The Biden administration initially had not signaled which way it would go on the program, with USDA Secretary Tom Vilsack suddenly signaling the agency would end the effort. But the end of the program is one that will also be a challenge as CNN pointed out it needs to be wound down "in a way that doesn't create more problems for those still in need." Surprisingly, the Food Box program was ended even though it had a lot of support on the Hill, including several Democrats. During Vilsack's confirmation hearing, Sen. Pat Leahy, D-Vt., spoke glowingly about the program and how it provided help to families in need and provided them access to nutritious and fresh foods. Another Democrat, Sen. Corey Booker, D-N.J., the chairman of the Senate nutrition subcommittee, is calling on the government to keep a version of the food box program permanent as a way to make sure that needy families are able to get access to fresh fruits and vegetables. The Food Box program was not without its issues. USDA bypassed normal food aid channels in a bid to try and get the aid out quicker and in a more-regional way. Their choice of a firm in Texas to handle a portion of the program that had no experience in food delivery raised more than a few complaints, but their participation in the program was short-lived. The Trump administration injected funds into the program when they were nearly exhausted and warded off ending the program. When food deliveries began to dry up at one point, several stories appeared about recipients and those delivering the food were anxious for it to continue. CNN reported that the Capital Area Food Bank based in Washington, DC, helped deliver more than 1 million of the food boxes to families, making up nearly one-third of the meals it provided during the pandemic. They are among those hoping it will continue. "For our clients, the recovery is a long and slow one," said Radha Muthiah, Capital Area Food Bank's president and CEO. "The most important thing is to provide good, nutritious food for them and we certainly still need USDA as a partner." But politics also came to play in the program. CNN pointed out that in the run-up to the election, former President Donald Trump required that the boxes include a letter from him touting the benefit. While critics argued that it should have deployed the $5 billion spent in the program via the usual nutrition programs, the effort focused on fresh fruits, vegetables, dairy and meat and put it all into one box. In a statement, the USDA said the Food Box program was meant to be a temporary effort. "It served that purpose, although with serious challenges, and now we must make sure people are getting access to food through other, more reliable channels," USDA said. But even in ending the program, Vilsack hinted that it may not be totally dead. Rather, he suggested that USDA would possibly take the "best of" the Food Box effort and incorporate it into existing program. So we will see. The expectation of many had been that the program would see at the very least a new name and some structural changes. But few expected to see it jettisoned as a whole, especially with bipartisan support for an effort launched as an emergency action that became very popular. The Food Box program may be gone by name, but expectations are that remnants will still be present. It is a situation which bears watching, especially one that creates a closer link between farmers and consumers, Washington Insider believes.
| Rural Advocate News | Thursday May 13, 2021 |
USDA Reopens Comment Period On Origins Of Livestock Rule For Dairy Under Organic Regs USDA is reopening the comment period for 60 days on a rule published April 28, 2015, relative to the origin of livestock regarding dairy cattle under USDA's organic regulations. The Agricultural Marketing Service (AMS) is reopening the comment period "to give all interested parties an opportunity to comment on whether AMS should prohibit the movement of transitioned cows in organic dairy production as part of the final rule." Comments are due July 12, according to the notice in the May 12 Federal Register. USDA initially reopened the comment period on the proposed rule October 1, 2019, receiving around 750 comments at that point. The reopening of the comment period now is to get views on two additional issues on the movement of transitioned animals and the updated economic analysis of the proposed rule.
| Rural Advocate News | Thursday May 13, 2021 |
Canada Firmly Opposes Any US Attempt To Resurrect COOL Kristen Hillman, Canada's ambassador to the U.S., said Tuesday the country would strongly oppose any new proposals from the U.S. to resurrect mandatory country-of-origin labeling (COOL) for beef and pork. "We went through this in 2013, 2014 and 2015 and we are very firmly of the view that mandatory country of origin labeling is inappropriate," Hillman said during a Washington Ag Roundtable webinar. "That's an issue that has been fully litigated and I wouldn't want to see us go back to that." Both Canada and Mexico challenge the last U.S. COOL attempt and won a battle at the World Trade Organization. The U.S. appealed and lost before repealing it under threat of $1.4 billion in retaliatory tariffs on a list of U.S. products. The National Cattlemen's Beef Association, long an opponent of mandatory COOL, raised the issue last week with U.S. Trade Representative Katherine Tai.
| Rural Advocate News | Thursday May 13, 2021 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. jobless claims, the U.S. producer price index and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CDT Thursday. The U.S. Energy Department's weekly report of natural gas inventory is due out at 9:30 a.m. Traders continue to watch the latest weather forecasts and check for any export news. Weather Dry conditions will cover all primary crop areas Thursday. A warming trend is also in store which will favor planting and early crop development. Eastern Midwest progress will lag due to cooler conditions including some frost and freeze issues. Dry conditions remain stressful in drought areas of the northern Midwest, northern and southwestern Plains, Northwest, and Canadian Prairies. Forecast maps indicate a slow-moving storm system during the first half of next week bringing possibly significant precipitation to central and southern crop areas.
| Rural Advocate News | Wednesday May 12, 2021 |
12 States Launch Farm Stress Resource Center Midwestern farmers, ranchers, and agricultural workers have direct access to a new tool to help them manage stress, anxiety, depression, or substance issues. A new website, www.FarmStress.org, is designed to help provide the agricultural community with resources and support provided through the North Central Farm and Ranch Assistance Center. “May is Mental Health Awareness Month, so it’s an opportune time to unveil this website that will serve as a clearinghouse for stress and mental health resources for anyone experiencing stress related to the many challenges of farming,” says Josie Rudolphi (Roo-DOLL-fee) of the University of Illinois. The North Central Farm and Ranch Assistance Center is a 12-state collaborative based at the University of Illinois and works to expand access to and knowledge of mental health resources. The website shares available resources and research in a convenient, easy to access location. It also has resources by state and topic, including crisis numbers, telephone hotlines, and training resources. Rudolphi wants to encourage people in the agricultural community to bookmark the site for future reference on the many challenges that they, their families, employees, and clients face in agriculture. ********************************************************************************************** Agriculture Linked to U.S. Air Pollution Deaths Air pollution is the largest environmental mortality risk in the U.S. The National Academy of Sciences says air pollution is responsible for 100,000 premature deaths every year, and one-fifth of those deaths are linked to agriculture. Scientists from five universities noted in the study that air quality is largely ignored in discussions on the health and environmental impacts of food. “Agricultural production in the U.S. results in 17,900 annual air quality-related deaths, 15,900 of which are from food production,” the researchers say. “Of those, 80 percent are attributable to animal-based foods, both directly from animal production and indirectly from growing animal feed.” The study authors also say that dietary shifts toward more plant-based foods that maintain protein content and other nutritional needs could reduce agricultural air quality-related mortality by 68 percent to 83 percent. Agriculture groups like the National Pork Producers Council and the National Cattlemen’s Beef Association told the Washington Post that they consider the report’s data and methodology flawed. ********************************************************************************************** Growth Energy on the Colonial Pipeline Incident Growth Energy sent a letter to Environmental Protection Agency Administrator Michael Regan and Energy Secretary Jennifer Granholm on the cyberattack against the Colonial Pipeline. The letter calls for the officials to immediately reduce restrictions on higher ethanol-blended fuels as relief for resulting supply disruptions and rising gas prices. “E15 is now sold at nearly 2,400 locations across the country, including several hundred locations in the Southeast, where the impact of the Colonial is most felt,” says Growth Energy CEO Emily Skor. “By immediately removing remaining regulatory hurdles and providing greater access to E15, you can help keep fuel prices in check for American consumers and ease concerns about the fuel supply.” The organization asked the officials to make E15 broadly available at all fuel terminals in areas impacted by related fuel shortages. They also want the EPA to finalize the proposed rule that would broaden the availability of existing infrastructure for use with E15 and related labeling concerns. “We also urge you to remove unnecessary misfuelling requirements, including the restrictions on the use of E15 in shared fueling hoses with 10 percent blended fuel and related fuel sampling requirements,” Skor adds. “Finally, we strongly encourage the government to strengthen its use of higher ethanol blends such as E85 in its current flex-fuel fleet.” ********************************************************************************************** ADM Building First Soy Processing Plant in North Dakota ADM says it will build the first-ever dedicated soybean crushing plant and refinery in North Dakota. The goal of the new facility is to meet the fast-growing demand from food, feed, industrial, and biofuel customers, including renewable diesel producers. It will be in Spiritwood, North Dakota, with the approximately $350 million crush and refining complex to feature state-of-the-art automation technology and have the capacity to process 150,000 bushels of soybeans a day. The company is putting the facility in the middle of a major soybean-producing area, which means ADM’s logistics network will enable the facility to access both domestic and global markets for soybean oil. The new plant will be completed before the 2023 harvest. “This project allows us to partner with North Dakota farmers to further advance the role of ag in addressing climate change through the production of low carbon feedstocks for products like renewable diesel,” says Greg Morris, ADM’s President of Ag Services and Oilseeds Business. North Dakota Governor Doug Burgum says, “This plant is a gamechanger for North Dakota farmers, adding value and expanding the market for this important crop closer to home while also supporting the production of products like renewable green diesel right here in the state.” ********************************************************************************************** Drought Emergency Declared in 41 California Counties California Governor Gavin Newsom issued an expanded “drought emergency proclamation” for 41 of the state’s 58 counties. Reuters says he cited above-average temperatures and dry conditions in April and May. Newsom directed the state water board to consider modifying the requirements for reservoir releases and other conservation measures. In addition, the declaration gives California officials flexibility in regulatory requirements to mitigate drought impacts, which Newsom attributed in part to climate change. “We’re working with local officials and other partners to protect public health and safety and the environment and call on all residents to help meet the challenge by stepping up efforts to save water,” Newsom says. The move was criticized by a wildlife protection group called Save California Salmon, which accuses Newsom of favoring big agricultural interests. A statement from the groups says, “California’s antiquated water rights system leaves cities and the environment high and dry while almonds get clean water. Poor water management during the last drought led to 90 percent of salmon dying, and toxic algae bloom in cities’ water supplies.” *********************************************************************************************** Global Pork Production Slowed by Herd Health and Supply Issues Rabobank says hog prices are sharply higher in many markets worldwide as processors are scrambling to find adequate supplies. Higher disease losses in key growing regions, along with the lagging impact of industry liquidation brought on by COVID-19, have limited available hog supplies. “African Swine Fever has proven harder to manage than initially expected in some regions, slowing herd rebuilding efforts in Asia and shifting trade expectations for the rest of the world,” says Christine McCracken, Senior Analyst for Animal Protein at Rabobank. Higher disease-related losses in parts of North America are also contributing to the supply shortfall in the U.S. and Mexico. The re-emergence of Classical Swine Fever in Japan and Brazil is currently expected to have a limited impact on production but still brings new risk to the markets. “We expect a gradual recovery in the herd, yet higher costs of raising animals and demand uncertainty are expected to moderate the pace of growth,” McCracken says. Higher costs in raising hogs are contributing to production slowdowns in certain regions, as the price of feed is up 35 percent year over year. Lower production expectations have left the market short of pork, just as demand is getting stronger.
| Rural Advocate News | Wednesday May 12, 2021 |
Washington Insider: Mexico to Allow US Organic Products in Through 2021 Trade issues between the U.S. and Mexico have emerged the past week, with the AFL-CIO filing a case under the U.S.-Mexico-Canada Agreement (USMCA) on what they say are labor abuses by an auto-parts factory in Mexico. The U.S. has also pushed Mexico to remove its restrictions on imports of U.S. potatoes, but that dispute remains in the hands of the Mexican court system. That one is expected to result in Mexico allowing in U.S. potatoes, but so far that resolution has not yet been put in place. But there has been some action on the part of Mexico that will at least temporarily remove some uncertainty on the trade front in Mexico agreeing to extend an allowance for U.S. organic products to come into Mexico. Mexico put in place its Organic Products Law which would require all organic products sold in Mexico to be certified under Mexican organic standards. Or the rules also would allow those products to be sold if they came from a country where Mexico deems the standards to be equivalent of their rules. Organic products from Mexico have to be certified under USDA organic regulations, with around 24 accredited certifiers in Mexico and more than 1,600 operations in Mexico that have been deemed USDA certified. But therein lies the rub. U.S. products that are USDA certified can be exported into Mexico, but the two sides have not yet reached agreement on whether that USDA certification meets the standards laid out in Mexico. The two sides have been working on that issue for quite some time. According to USDA's Agriculture Marketing Service, "The U.S. and Mexico hope to sign an arrangement to allow USDA-certified product to continue to be sold in Mexico under organic equivalency arrangement." Mexico has put in place a deadline of June 26, 2021, for U.S. products to be certified under its organics law (LPO). Mexico held a seminar on the matter last month. But USDA on Tuesday announced that Mexico has agreed to let those USDA certified organic products enter the country through Dec. 31. "I am pleased to report that on May 7, 2021, Mexico's Secretariat of Agriculture and Rural Development (SADER) extended the deadline for U.S. organic exports to be certified to its Organic Products Law (LPO)." USDA Secretary Tom Vilsack announced. "This is a request that I made directly to Mexico's Secretary of Agriculture and Rural Development Victor Villalobos and am grateful that he extended the compliance deadline to Dec. 31, 2021." The U.S. will continue its efforts work with U.S. organic exporters to assist in transitioning to LPO compliance, Vilsack said, "and will continue to provide updates as necessary." In 2017, U.S. exports of selected organic products to Mexico totaled more than $133 million, while U.S. organic imports from Mexico during that same time topped $278 million. The USDA and Mexico's National Service for Animal and Plant Health, Food Safety and Quality (SENASICA) are evaluating each other's systems to determine whether an organic equivalency arrangement could be established between the U.S. and Mexico. While pushing back the deadline is certainly welcome, it still does not resolve the issue that the Mexican regulations could pose. And it underscores that even close trading partners like the U.S. and Mexico do not always see eye to eye on trade and regulatory matters. So we will see. Clearly for organic products this is at least provides some breathing room. And it provides still-more time for the two sides to work out some kind of agreement. But moving the deadline back still does not resolve the issues, nor does the situation address other trade matters between the two sides on ag products. These are developments that producers beyond organic growers should monitor closely, Washington Insider believes.
| Rural Advocate News | Wednesday May 12, 2021 |
CFAP 2 Payouts Rise Slightly in Latest Week Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) increased to $13.59 billion as of May 9, up from $13.55 billion the prior week. Totals include $6.25 billion in acreage-based payments, $3.44 billion for livestock, $2.63 billion for sales commodities, $1.21 billion for dairy and $58.31 million for eggs/broilers. Payments under CFAP 1 payments were little changed at $10.57 billion. There still is little information available about payments under the CFAP Additional Assistance effort even though USDA has said they are processing payments for "certain applications" filed under that effort.
| Rural Advocate News | Wednesday May 12, 2021 |
COOL On List Of Issues NCBA Raised With USTR Tai National Cattlemen's Beef Association CEO Colin Woodall met with U.S. Trade Representative Katherine Tai on Friday (May 7) to "discuss ways to resolve issues surrounding country of origin labeling and agriculture's contributions to meeting the administration's sustainability and environmental goals," according to a readout of the virtual meeting released by the Tai's office. Tai also "committed to monitoring Chinese compliance with the structural commitments of the U.S.-China Economic and Trade Agreement," and the two agreed to continue a dialogue in the future. The issue of country of origin labeling (COOL) has continued to be talked about as the Biden administration has begun its work, something that observers in Canada and Mexico have been following closely. The U.S. removed mandatory COOL from law after losing a case at the WTO and Canada still has the authority to impose $1 billion in retaliation should mandatory COOL be brought back in.
| Rural Advocate News | Wednesday May 12, 2021 |
Wednesday Watch List Markets The U.S. Labor Department will report on consumer prices at 7:30 a.m. CDT Wednesday with ramifications for interest rates and the U.S. dollar. At 9:30 a.m., the U.S. Energy Department releases its weekly inventory report, including ethanol production. USDA's WASDE and Crop Production reports are due out at 11 a.m. CDT, offering new-crop estimates, as well as old. The U.S. Treasury reports on the April budget at 1 p.m. Weather Wednesday will be dry and very cool to cold in the Midwest. Frost and freeze advisories cover much of the region early. The pattern shows a warming trend beginning during the day to more seasonal values. Precipitation will focus on the Gulf Coast and Southeast with a flash flood threat in the lower Delta. Dryness and drought concern continue in the northwestern Midwest, Northern Plains and throughout the western and northwestern U.S.
| Rural Advocate News | Tuesday May 11, 2021 |
Canadian National Railway Purchasing 1,000 Grain Cars Canadian National Railway has placed an order for 1,000 new generation, high-capacity grain hopper cars. The new railcars, to be built in Mexico, will help meet the growing needs of North American grain farmers and the demands of grain customers. The order is part of a larger program to build and renew a fleet of 6,000 hopper railcars over the next three years. CN recently made a formal offer to acquire Kansas City Southern. The combination would extend the span of CN’s network from Canada and the U.S. into Mexico, making it the first railroad to link North America’s three national economies. CN President and CEO JJ Ruest states the railcars "will help move more grain across the CN rail network, which continues to make CN the embodiment of a true USMCA railroad.” The railway also noted that support for its Kansas City Southern proposal is expanding, with more letters of support being submitted to the Surface Transportation Board. ************************************************************************************ Vilsack Tours Colorado Wildfire Recovery Agriculture Secretary Tom Vilsack visited Colorado Friday, surveying wildfire recovery efforts. Joined by Senator Michael Bennet, a Democrat from Colorado, and others, Vilsack visited two sites in the Cameron Peak Fire area, the largest fire in Colorado history, burning 208,913 acres. After, the group held a roundtable discussion on climate change mitigation and adaptation, drought, conservation and soil health, the agricultural workforce, and other issues. Senator Bennet says, “We have to protect our forests and invest in our watersheds —these are national assets. Secretary Vilsack understands that, and I'm glad he was here to see Colorado’s efforts.” Vilsack continued his trip Monday, focusing on ensuring children have access to safe and healthy food with a visit to a school in Aurora. USDA says the Biden Administration is committed to ending child hunger and has taken steps to expand healthy and free school meals. As a result, hunger has fallen by 43 percent since December thanks, in part, to these investments. ************************************************************************************ Impossible Foods Gains School Nutrition Label Impossible Foods recently secured Child Nutrition Labels, clearing a path towards entering the K-12 market this fall. Child Nutrition Labels are voluntary food crediting statements authorized by the Department of Agriculture. The labels make it easier for schools participating in federal Child Nutrition Programs to determine how much a particular food contributes to federal meal pattern requirements for nutritionally balanced meals for children each school day. With the Child Nutrition labels secured, Impossible Foods is kicking off K-12 pilot programs this month with school districts across the United States. Participating schools are using the product in dishes ranging from Impossible Street Tacos to Impossible Frito Pie, to Spaghetti with Impossible Meat Sauce. School district pilot participants also surveyed kids after using the Impossible items to gauge their interests. Jessica Appelgren, Vice President of Communications at Impossible Foods, says, “Our CN Label launch is just the beginning of Impossible Foods engaging this next crucial generation.” ************************************************************************************ Growth Energy Launches New Consumer Campaign Growth Energy last week launched a new consumer campaign to encourage drivers to choose biofuels. During the organization’s 12th Annual Executive Leadership Conference, Growth Energy announced the effort that seeks to raise awareness about biofuels’ positive environmental benefits. Through a series of targeted digital content, advertising, and digital media, the Get Biofuel campaign aligns biofuel benefits to an empowerment message titled “Fuel Beyond.” Growth Energy CEO Emily Skor says, “Our industry’s passion for showcasing the benefits of biofuels is unparalleled, and I’m thrilled to unveil this new initiative.” The website, getbiofuel.com, outlines the benefits of biofuels and encourages drivers to choose biofuel blends at the pump. The website tells consumers biofuel cuts greenhouse gas emissions by 46 percent. The pilot campaign for the initiative launched on Earth Day, April 22, 2021, in the Raleigh, North Carolina and Salt Lake City, Utah media markets, and is slated to expand nationally in fall 2021. ************************************************************************************ USDA: Develop a Food Safety Plan for Hurricane Season The Department of Agriculture's Food Safety and Inspection Service urges residents along coastal areas to have a hurricane food safety plan. USDA says when a hurricane hits, prolonged power outages and flood damage are two of the biggest risks to food. The recommendations including buying ice packs and coolers days before a hurricane arrives, and freezing containers of water to make ice. Additionally, USDA says to use an appliance thermometer to determine the safety of your perishable foods. Meat, poultry, fish and egg products must be kept at 40 Fahrenheit or below and frozen food at zero degrees or below. Illness-causing bacteria grow in temperatures between 40 and 140 Fahrenheit. Bacteria that develop at these temperatures generally do not alter in a noticeable way. During a power outage, a refrigerator will keep food safe for up to four hours, and a full freezer will hold temperatures for 48 hours or 24 hours if half full. ************************************************************************************ Farmers Veteran Coalition Issues Grants to Small Farmers The Farmer Veteran Coalition announced grants last week to support veterans in their early years of farming and ranching. More than 100 farmers are being awarded equipment thanks to the Farmer Veteran Fellowship Fund. FVC Executive Director Jeanette Lombardo says, “We directly purchase a piece of equipment the farmer has identified as being critical.” Over 11 years, more than 700 veterans have benefitted with $3.5 million in equipment distributed. The 2021 class includes representatives in nearly 40 states and 47 females. Equipment will soon be delivered to farms starting now and into the summer. Grantees anxiously await greenhouses and grow tents, walk-in coolers and cold storage units, milking systems, water filtrations, and honey extractors. Other unique requests include a mushroom substrate steamer and a lavender bud stripper. Funding is made possible through sponsored support. Some of this year's grantees have been mentored by other farmer veterans throughout their careers, and many intend to hire veterans as they expand their own businesses.
| Rural Advocate News | Tuesday May 11, 2021 |
Washington Insider: US Labor Brings First USMCA Challenge The U.S. labor union AFL-CIO has filed a complaint against a Mexican auto-parts factory over working conditions at the plant that is just across the border from Brownsville, Texas. The Tridonex plant in Matamoros is facing the first complaint brought under provisions in the U.S.-Mexico-Canada Agreement (USMCA). The groups are utilizing what is called a rapid-response mechanism that was put into place as part of the USMCA deal that replaced the North American Free Trade Agreement (NAFTA). "USMCA requires Mexico to end the reign of protection unions and their corrupt deals with employers," said AFL-CIO President Richard Trumka. The AFL-CIO said workers at the plant had been "harassed and fired over their efforts to organize with an independent union, SNITIS, in place of a company-controlled union," according to the New York Times. Susana Prieto Terrazas is a Mexican labor lawyer and leader of SNITIS and was jailed last year. Prieto was only released after she agreed to internal exile in another Mexican state and was banned from appearing in labor court. Under USMCA, the Times reported that Mexico was required to make major changes to its labor system which the paper said included actions like putting "sham collective bargaining agreements known as protection contracts" in place, actions which lock in low wages. Under the rapid-response system that was put in place by USMCA, complaints about labor violations can be brought against an individual factory and penalties can be applied to that factory. Under USMCA, Mexico was pushed to improve labor conditions and pay for workers in Mexico, something which backers of the provisions said would aid American workers as it would not encourage companies to shift operations to Mexico with cheaper labor. Tridonex is a subsidiary of U.S.-based Cardone Industries, controlled by Canadian-based Brookfield Asset Management. Cardone moved its brakes division to Mexico in 2016 and laid off some 1,300 workers in Philadelphia, the Times noted. Agriculture is among the industries that have been eyeing the USMCA for action, with an initial complaint filed against Canada over their dairy import actions and implementation of provisions in USMCA that would grant the U.S. more access to the Canadian market. That case is still pending. Under USMCA, the dispute settlement processes put in place have a relatively short timeline for resolution. So neither the labor complaint nor the dairy complaint are expected to become protracted actions that take months or even years to resolve. Indeed, the rapid-response mechanism on labor was billed in a fact sheet for the agreement as "providing for monitoring and expedited enforcement of labor rights to ensure effective implementation of Mexico's landmark labor reform at particular facilities while respecting sovereignty and due process." And from the U.S. side, one of those intimately familiar with those provisions is none other than U.S. Trade Representative Katherine Tai. She was chief counsel for the House Ways and Means Committee when the Trump administration worked with Congress to put together the implementing language for USMCA. And, Tai has made clear that U.S. trade policy under the Biden administration will be more worker oriented. So we shall see. The administration now has two complaints to manage under USCMA even though they are disparate issues--labor and dairy. Still, these represent some of the initial examples of how the new trade deal will run. Ag interests should follow both of these cases closely as they unfold, Washington Insider believes.
| Rural Advocate News | Tuesday May 11, 2021 |
Friction Between Food Suppliers and Retailers Increasing Big buyers including Walmart and Sysco are starting to fine suppliers over late food deliveries or incomplete orders, as tight labor conditions, supply constraints and higher freight costs course through distribution channels, the Wall Street Journal reported. The paper said that penalties revive programs that were suspended during the pandemic, when sudden upheaval in consumer buying patterns triggered widespread supply shortages. Retailers say they are trying to keep shelves stocked in a rebounding U.S. economy, but suppliers like Pillsbury owner Hometown Food say their supply chains are still challenged by soaring raw materials costs and tight transportation capacity. The higher costs are filtering through to consumers. A new reading on inflation at the consumer level will arrive this week along with an update on wholesale inflation levels.
| Rural Advocate News | Tuesday May 11, 2021 |
Bipartisan Carbon Tax Bill Would Replace Federal Fuel Taxes A bipartisan bill in the House would tax carbon emissions, send 70% of the revenue to the Highway Trust Fund and eliminate the federal gas tax. According to text obtained by CQ Roll Call, the bill would levy a $35 per-metric-ton tax on fossil fuels--specifically coal, oil and gas--a charge that would begin in 2023 and increase by 5% every year, indexed to inflation. Reps. Brian Fitzpatrick, R-Pa., and Salud Carbajal, D-Calif., introduced the bill in the previous Congress. The bill's reintroduction Friday comes as some conservative-leaning industry groups have warmed to the prospect of pricing carbon emissions while elected GOP politicians continue to drift away from the concept. The measure calls for the remaining 30% be spread across other projects. The bill would also extend tax credits under Treasury's so-called 45Q program for carbon-capture technology, a method of trapping emissions before they enter the atmosphere, from 2026 to 2028.
| Rural Advocate News | Tuesday May 11, 2021 |
Tuesday Watch List Markets There are no official reports on Tuesday's docket, but traders will be watching the latest weather forecasts and any for any news of export sales or grain imports into the U.S. Weather Light to moderate rain is in store for much of the Southern Plains through the Delta Tuesday. The rain offers moisture benefit for wheat and cotton. Some flash flooding is also likely in the lower Delta. Other crop areas will be dry with frost and freeze potential early morning in the northern Midwest.
| Rural Advocate News | Monday May 10, 2021 |
China Trade with U.S., Australia, Growing Despite Tensions Chinese exports hit higher numbers in April than anticipated as global demand for the country’s goods remained high despite other countries’ dealing with coronavirus recovery. A CNBC report says Chinese exports to the U.S. rose 31 percent in April, compared to a year ago, to $43.05 billion, while imports from the U.S. rose 52 percent to $13.94 billion. China’s trade with its major partners grew despite tensions. China and the U.S. levied tariffs on each other worth billions during the trade war with the Trump Administration. Tensions between China and Australia took a wrong turn late last week as Beijing suspended further high-level economic negotiations between the two countries. Economist Joseph Capurso of the Commonwealth Bank of Australia says the improvement in trade between the U.S. and China is due to President Biden’s fiscal stimulus. “The recovery in U.S.-China trade has reversed much of the trade war slump, even though few restrictions on trade have actually gotten removed,” he says. “China has also bought Australian products despite restrictions, most of which are on farm goods.” Chinese imports from Australia rose 49 percent to $40 billion, while imports jumped 43 percent to $26.79 billion. ********************************************************************************************** Coalition Asks Tai to Consider Rejoining Pacific Trade Group A bipartisan coalition of House and Senate members sent a letter to U.S. Trade Representative Katherine Tai about the Trans-Pacific Partnership. The Hagstrom Report says the letter points out that President Trump’s decision to withdraw from the agreement was wrong and asks her to investigate the “pros and cons of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which was signed by 11 other TPP countries in 2018 without the U.S.” The legislators say in the letter that “our current trade policy in the Asia-Pacific region needs a strategic direction that includes robust engagement with our allies in the region, similar to what was envisioned by the 12-country Trans-Pacific Partnership.” They also say that withdrawing from the trade agreement was a missed opportunity to strengthen U.S. leadership in the global economy and reinforce America’s commitment to a rules-based system for international trade. “The stakes are exceptionally high,” the letter continues. “The region is home to China, one of America’s biggest rivals, whose values and interests are much different from our own.” They say that China’s trade practices have violated international rules and the fundamental principles of fairness, causing harm to U.S. businesses and workers. ********************************************************************************************** PLC Seeks Proposals to Address Public Lands Issues The Public Lands Council has released a Request for Proposals on subjects related to the public lands ranching industry, economic viability, natural resource stewardship, and other issues. Each year, the PLC Board of Directors identifies priority areas that will help address scientific and practical challenges that affect cattle and sheep producers across the West. The PLC board identified several issues for consideration, including carbon storage. They want to know how livestock grazing interacts with carbon storage, organic matter volume, and other environmental metrics on public lands. Another topic is livestock and wildlife, with the board wanting to know if there are demonstratable interactions between public lands grazing and wildlife habitat or migration patterns. They also are looking for input on multiple-use challenges and education for public lands, as well as wildfire challenges and how grazing affects the development of fires. The PLC awards grants for the Fiscal Year 2022 that will help support projects designed to answer some of these questions and solve some problems when it comes to public land grazing. For more information, go to www.publiclandscouncil.org. ********************************************************************************************** AEM Talks Record-High Equipment Sales Curt Blades, the Senior Vice President of Ag Services with the Association of Equipment Manufacturers, says, “We’re operating in a very interesting market right now.” In the first quarter of 2021, total farm tractor unit sales are up more than 50 percent in the U.S. and nearly 60 percent in Canada. Those numbers come from the recent AEM Ag Tractor Combine Report that comes out every month. “For the last 12 months, we’ve seen a dramatic rise in the under-40 horsepower, or small tractor sales in North America, both the U.S. and Canada,” he says. “This is due largely to a lot of the industries that have done well during COVID-19, like luxury items or things that have to do with the home.” Small tractors fall into that category. Small tractor sales are spiking as they head to suburbs with larger lots to help homeowners haul rocks and dirt, work around trees, and improve their property. Later in 2020, larger row-crop and articulated four-wheel-drive tractors also enjoyed rising sales numbers. Over the last five years, the average age of the ag fleet grew in both the U.S. and Canada. As commodity prices rose and trade difficulties eased, not only is the replacement market doing well, but farmers are upgrading their operations with newer technology. *********************************************************************************************** April Food Price Index Up 30 Percent Over Last year The United Nations Food and Agriculture Organization’s Food Price Index is a measure of the monthly change in international prices of a basket of food commodities. The index shows a significant price increase for food compared to 2020. The newest Food Price Index averaged 120.9 points in April, two percent higher than March and almost 31 percent higher than the same point last year. It’s the eleventh-consecutive monthly rise in the value of the index, which has reached its highest level since May 2014. The April rise was led by strong increases in the prices of sugar, followed by oils, meats, dairy, and cereals. The FAO Sugar Price Index averaged 100 points in April, four percent higher than March and almost 60 percent higher than the same month last year. Another big jump took place in the Dairy Price Index, which averaged 118.9 points in April, up two percent from March, the eleventh-straight month of increases. The dairy index is also 24 percent higher than the same time in 2020. ********************************************************************************************** FFA Continues to Support Next Generation’s Leaders FFA awarded more than $1.5 million in scholarships to 974 recipients with the help of more than 300 sponsors and donors. The FFA scholarships were available to students pursuing two-year or four-year degrees, or vocational certification, or specialized training programs. The average recipient had a GPA of 3.7 on a 4.0 scale. This year is the 37th year for the scholarship program, which began in 1984 with only 16 scholarships. Since then, more than $50 million have gotten awarded in scholarship funds through the National FFA Organization. The selection process considers the whole student, including FFA involvement, work experience, supervised agricultural experiences, community service, leadership skills, academic performance, and financial need. “We know that our FFA members are the next generation of leaders who will change the world,” says Michele Sullivan, senior manager of local engagement. “These scholarships are just one more way to support them on the next steps in their educational journeys.” More information is available at www.FFA.org. New information on the 2022 FFA Scholarships will be released on November 1.
| Rural Advocate News | Monday May 10, 2021 |
Washington Insider: Cyberattack Shuts Down Key Pipeline Politico is reporting that the pipeline system that feeds much of U.S. East Coast fuel supplies was shut down Friday as a cyberattack hit the Colonial Pipeline. The company said on Sunday it had no estimate on when it could restart the 5,500-mile pipeline that it shut Friday after a cyberattack. The pipeline supplies about 45% of the gasoline and diesel that is consumed on the U.S. East Coast from the hub of refineries near Houston. It remains offline for now, the company said in a statement, though it restarted some smaller lines that run off the main arteries. Prices for wholesale gasoline in the financial futures market jumped as much as 4% in Sunday evening trading to their highest level since 2018, the report said. Colonial also confirmed that hackers used ransomware to shut down its internal computer business networks. That prompted the company to shut down the systems that control the pipeline as a precaution, and it has brought in third-party cybersecurity firms and is trying to restore its IT system, the Georgia-based company said, according to Politico. "It's an all-hands-on-deck effort right now," Commerce Secretary Gina Raimondo said of the government's response during a Sunday television interview. "And we are working closely with the company, state and local officials to, you know, make sure that they get back up to normal operations as quickly as possible and there aren't disruptions in supply." The trade group American Petroleum Institute said it was closely monitoring the pipeline situation and that cybersecurity is a top priority for the energy industry. The Department of Transportation issued waivers on Sunday allowing fuel truck drivers in 17 states to work additional hours to try and supply products. And several media outlets reported that a Russian group has links to the situation with CNN reporting that the Russian group "Darkside" is believed to be responsible for the ransomware attack. The situation has exposed one of the biggest fears that is nearly unspoken -- the U.S. energy sector is one of the biggest potential targets for cyberattacks. The situation hinges on how long the pipeline stats shuttered. And with the Memorial Day holiday ahead and U.S. drivers likely champing at the bit to break free of the pandemic even for a few hours, the cost of such an activity could be key. While the situation unfolded Friday, there was little news that emerged on the situation until Saturday when major newswires were covering the matter. So we shall see. The U.S. energy infrastructure is one that farmers also depend on. And with planting activity still ahead in some areas of the country, costs that are rising for fuel could become a factor that farmers will have to deal with in and that could create additional turbulence for the sector just at a time when prices were rising for their products.
| Rural Advocate News | Monday May 10, 2021 |
Beyond Meat Reports Loss on Slower Restaurant Sales Beyond Meat reported a bigger loss in quarterly earnings than expected, sending shares in the company down 7% after the report. The company blamed sluggish sales to restaurants, increased freight and storage costs that dented the earnings picture. The company said slow sales had built up supplies of pea protein and that raised warehousing costs. The firm reported net revenue of $108.2 million in their first quarter that ended April 3, below expectations it would be nearly $114 million. They registered a net loss of $26.8 million compared with a profit of $1.8 million one year ago.
| Rural Advocate News | Monday May 10, 2021 |
House Democrats Join Those Concerned About Stepped-up Basis The latest pushback from President Joe Biden's tax plans come from 13 House Democrats via a letter to Speaker Nancy Pelosi, D-Calif., and other House Democratic leaders asking for an exemption for family farms from the stepped-up in basis tax hit. "The requirement to recognize capital gains at death runs the risk of forcing farms and ranches to sell part, or all, of a farm that may have been passed down for several generations in order to pay the tax burden," wrote the Democrats, who include some that are viewed as potentially being vulnerable incumbents. According to the Penn Wharton Budget Model, estimates that raising the top capital-gains tax rate to 43.4% would shrink federal revenue by $33 billion over 10 years, a smaller hit than the Tax Foundation's projected loss of $124 billion. To compensate, the Biden administration has proposed a $1 million cap on the "step-up in basis," which excludes unrealized gains from taxation at death. The Wall Street Journal labeled it a "backdoor death tax," and Penn Wharton estimates the change would raise up to $113 billion over a decade. USDA pledged that the Biden plan included exempting agriculture from the capital gains/stepped up basis, but clearly those assurances are not enough for the Democratic lawmakers penning the letter to leaders. It also underscores the Biden tax plan faces potential issues ahead relative to having enough support. Based on history, the farm family carveout is likely the first of many requests ahead.
| Rural Advocate News | Monday May 10, 2021 |
Monday Watch List Markets After six consecutive weeks of higher corn prices, traders will keep watch over the latest weather forecasts and perk up at 8 a.m. CDT to see if USDA has another corn sale from China to report. USDA's weekly grain export inspections report is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. CDT. Weather Light to moderate rain is in store Monday for the southwestern and far Southern Plains along with the lower Delta. We'll also see a few light showers in portions of the northern Midwest and Southeast. Other primary crop areas will be dry. The southwestern Plains rainfall is timely and beneficial for developing winter wheat. During the past weekend, beneficial moderate to locally heavy rain was also noted in portions of the dry Northern Plains and the western Midwest. Temperatures stay cool one more day before trending to more seasonal ranges.
| Rural Advocate News | Friday May 7, 2021 |
Biden Administration Announces America the Beautiful Proposal The Biden administration Thursday announced its so-called 30x30 plan, renamed America the Beautiful proposal. The plan seeks to collaboratively work to conserve and restore the lands, waters, and wildlife that support and sustain the nation. The recommendation report outlines a locally-led and voluntary nationwide conservation goal to conserve 30 percent of U.S. lands and waters by 2030. The proposal outlines eight principles that should guide the nationwide effort, including a pursuit of collaborative approaches; a commitment to supporting the voluntary conservation efforts of farmers, ranchers, and fishers; and honoring of Tribal sovereignty and private property rights. The American Farm Bureau Federation President Zippy Duvall responded, stating AFBF appreciates the report address the organization's concerns and includes input from agriculture. However, Duvall adds, “The report is a philosophical document that emphasizes important principles such as incentive-based voluntary conservation, protecting personal and property rights and continued ranching on public lands, but it lacks specifics.” ************************************************************************************ Record-Breaking Performance for U.S. Beef and Pork Exports in March U.S. red meat exports ended the first quarter on a high note. The U.S. Meat Export Federation reports March beef and pork exports each posted the highest monthly value on record. Pork exports and shipments of beef muscle cuts also set new volume records in March. Beef exports totaled 124,800 metric tons in March, up eight percent from a year ago. Export value broke the $800 million mark for the first time at $801.9 million, up 14 percent year-over-year. March highlights for U.S. beef included record exports to China, Honduras and the Philippines and strong results in South Korea, Chile and Colombia. March pork exports were record-large at 294,700 metric tons, up one percent from last year's strong total, and set a new value record at $794.9 million, up four percent. USMEF President and CEO Dan Halstrom says, "It's very gratifying to see such an outstanding breakout month for U.S. beef and pork exports.” ************************************************************************************ Lawmakers Seek Level Playing Field for U.S. Pork Producers in Vietnam More than 70 U.S. lawmakers sent a letter this week to U.S. Trade Representative Katherine Tai seeking her support for enhanced Vietnamese market access for U.S. pork. Vietnam represents a tremendous opportunity for U.S. pork exports. National Pork Producers Council President Jen Sorenson says, “Vietnam represents a significant opportunity for U.S. hog farmers, yet we’re hamstrung by unjustified tariff and non-tariff barriers.” Vietnam’s domestic pork production industry is struggling with African swine fever, yet unwarranted tariff and non-tariff barriers restrict the United States from supplying this major pork-consuming nation with pork. The letter states, “Domestic pork producers need a level playing field to compete in this critical market, particularly after being devastated by trade retaliation and the global pandemic.” Last year, Vietnam took an initial step forward in addressing the U.S. pork tariff disadvantage when, from July-December 2020, it temporarily reduced its Most Favored Nation tariff rates from 15 percent to ten percent for frozen U.S. pork products. ************************************************************************************ Ag Group Urge Biden Administration to Appeal Chlorpyrifos Court Decision A coalition of agriculture groups urge the Biden administration to appeal a circuit court decision related to chlorpyrifos (Klohr-PEER-uh-fohs). The court ruling requires the Environmental Protection Agency to either write a new rule to allow for the safe use of chlorpyrifos or halt all food residue tolerances of the insecticide, which would effectively ban its use. The Ag Retailers Association along with dozens of agriculture groups oppose the court ruling because “it will set a bad precedent for EPA's registration review process for all agricultural chemicals.” The groups say the ruling sets the precedent of allowing petitioners and the federal courts to impose their decision-making process in reviewing the science over EPA's long-standing regulatory authority as established by Congress. The letter states, “We urge EPA to pursue all available legal review avenues to protect the science-based and risk-based regulatory process.” Chlorpyrifos is a widely used pesticide for use on crops, livestock and buildings to control insects and worms. ************************************************************************************ USDA Announces Breakthrough for ASF Vaccine Candidate The Department of Agriculture Thursday announced that an African Swine Fever Virus vaccine candidate has been adapted to grow in a cell line. The announcement means those involved in vaccine production will no longer have to rely on live pigs and fresh cells for vaccine production. The discovery overcomes one of the major challenges for manufacturing of an African Swine Fever Virus vaccine. The newly developed vaccine, grown in a continuous cell line — which means immortalized cells that divide continuously or otherwise indefinitely — has the same characteristics as the original vaccine produced with fresh swine cells. USDA Agricultural Research Service scientist Manuel Broca says, “This opens the door for large-scale vaccine production.” No commercial vaccines are currently available to prevent the virus from spreading. There have not been any outbreaks in the United States, but it is estimated that a national outbreak could cost at least $14 billion over two years, and $50 billion over ten years. ************************************************************************************ Drought Conditions Driving Lowered Missouri River Runoff Forecast Very dry conditions in April resulted in low runoff in the upper Missouri River Basin. Runoff was 44 percent of average, the 9th driest April in 123 years of record. The updated 2021 upper Basin runoff forecast is 17.8 million acre-feet, 69 percent of average, the 22nd lowest calendar year runoff volume. John Remus of the Army Corps of Engineers says, “The extremely dry April, current drought conditions, and below-normal mountain snowpack has led our office to significantly lower the 2021 calendar year runoff forecast.” Mountain snowpack in the upper Basin has peaked and melting is underway. The mountain snowpack peaked above Fort Peck in late March at 86 percent of normal, and the Fort Peck to Garrison reach peaked in late April at 96 percent of average. Gavins Point Dam releases will provide full-service navigation flow support through July 1. That, in combination with the Bank Stabilization and Navigation Project, is generally sufficient to provide an adequate channel.
| Rural Advocate News | Friday May 7, 2021 |
Washington Insider: Biden Tax Plans Continue to Worry Farmers President Joe Biden's plan proposing tax increases on the wealthy also contains potential tax changes many in U.S. agriculture are very concerned about. The elimination of stepped-up basis is one of those provisions. That would end the current allowance that says when a farmer/landowner passes away, heirs receive the land based on its current value. If the stepped-up basis is done away, heirs would face capital gains taxes based on the value when it was originally acquired by the farmer/landowner. When announcing the proposed changes, several officials including USDA Secretary Tom Vilsack, touted the fact their plan has an exemption for farms that remain family owned and operated after the owner passes. USDA said that would mean 98% of farms would be exempt from the decision. But that has not yet eased concerns. That is evidenced by a bipartisan group of House members who wrote to House leaders and urged them when compiling the legislation to put Biden's plan in motion they make sure farms and small businesses are exempt from the Biden plan. "The repeal of stepped-up basis for capital gains and immediate taxation could especially hurt family farms, some of which have been in families for generations; therefore, we strongly urge you to provide full exemptions for these family farms and small businesses that are critical to our communities," the Democratic lawmakers wrote. The use of the phrase that the exemption would apply to land that remained family owned and operated has also raised questions about whether that would apply to land inherited by those who do not farm the land. That is another potential worry point for agriculture where a rising number of landowners potentially have no heirs that are actively farming the ground, and that has those wondering if the loss of stepped-up basis and higher capital gains taxes would still apply in those situations. Another component of the Biden plan would end another tool farmers have already seen reduced -- 1031 exchanges. The tax package approved in 2017 narrowed the use of the Section 1031 exchanges to apply only to real estate. Previously, 1031 exchanges were allowed on personal property such as farm equipment and livestock. It allowed farmers to exchange their old tractors and upgrade to new ones without being taxed on their traded-in equipment. The 2017 tax law kept Section 1031 exchanges in place for real estate. That allows a farmer to sell land that perhaps would be located near an expanding city and take the resulting money and purchase land further out without paying capital gains on the sold farm ground. Similarly, some have used it sell an operation in one area with more-stringent regulations on farm practices and purchase ground in another location with fewer restrictions. The Biden plan would cap the level of profits that can be deferred tax-wise to $500,000, a limit that could effectively eliminate the 1031 exchanges on farm ground. The administration already had shelved another possibility that would also have set off alarm bells for agriculture. The initial talk was that the Biden plan was going to include an increase in the estate tax. Ag interests have led a successful campaign over the years to keep the estate tax from being increased. While they have also succeeded in raising the exemption level that determines when the estate tax kicks in, they have yet to see success in totally eliminating what they label the "death tax." So, we shall see. The Biden team has gone to great lengths to insist farmers would not be affected by the changes relative to capital gains and stepped-up basis. But the effort by a group of Democratic lawmakers makes clear they want more than just assurances; rather they want it in legislative language. And the 1031 issue also could remove another tool farm farmers' tax toolbox. All are items that bear watching for a sector that is asset-rich but at times, cash-poor, Washington Insider believes.
| Rural Advocate News | Friday May 7, 2021 |
USDA to Press on With Minority Farmer Debt Relief Plan USDA Secretary Tom Vilsack was asked to weigh in on a legal challenge launched by a group of white farmers contesting USDA's debt relief efforts on behalf of Black farmers and other selected minorities. The American Rescue Plan set aside $4 billion for the initiative, which provides unconditional USDA-held loan forgiveness for certain minority farmers along with extra funds to cover any potential taxes that arise. The lawsuit, filed by the Wisconsin Institute for Law & Liberty, alleges the move violates equal protection rights because it excludes white farmers solely on the basis of race. Vilsack said the debt relief moves aim to address past USDA discrimination against socially disadvantaged farmers -- defined under the legislation as Black, Hispanic, Native American and other racial minorities. "We have reimbursed people in the past for those acts of discrimination, but we've never absolutely dealt with the cumulative effect," he explained. Vilsack said USDA will press forward with the debt relief program, even with the pending litigation. "I understand that litigation is going to be what it is, and we'll obviously have the Department of Justice and others do what they do," he commented. However, Vilsack said the legal actions will not affect ongoing implementation of the effort in the meantime.
| Rural Advocate News | Friday May 7, 2021 |
Vilsack Acknowledges Carbon Bank May Need Congressional Action USDA Secretary Tom Vilsack Wednesday at a White House press briefing acknowledged a USDA carbon bank will likely need some action from Congress to get off the ground. However, he also noted farmers expressed support and interest in the bank and USDA's broader climate-smart ag push during a session this week alongside Environmental Protection Agency (EPA) Administrator Michael Regan. A reporter pressed Vilsack on whether a proposed USDA carbon bank would require congressional approval -- something Senate Ag Committee Ranking Member John Boozman, R-Ark., and others have asserted. "Well, it needs congressional approval in the sense that you have resources in all of these programs that require funding," Vilsack responded. "We have a lot of flexibility already at USDA, and we're going to be utilizing that flexibility in a way that creates more, new and better markets," he added, though he did not elaborate on what specific flexibility he was referring to. This indicates USDA's ability to establish and run a carbon bank using authority under the Commodity Credit Corporation (CCC) is not at all assured with Vilsack's indication that some congressional action will be needed.
| Rural Advocate News | Friday May 7, 2021 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the U.S. Labor Department will report on non-farm payrolls and the unemployment rate in April. Traders will keep an eye on the latest weather forecasts and pause at 8 a.m. CDT to see if USDA has an export sale announcement. A report on U.S. consumer credit in March follows at 2 p.m. CDT. Weather Isolated to scattered showers are expected across the eastern Midwest and up and down the Plains on Friday. Other areas will be dry. This will promote fieldwork and planting for much of the country while providing some soil moisture as well. Winds across the Northern Plains have raised red flag warnings and threats for fires. Lower temperatures will remain in place across the Midwest, unfavorable for crop progress.
| Rural Advocate News | Thursday May 6, 2021 |
CME Group Permanently Closing Physical Trading Pits CME Group announced this week it will not reopen its physical trading pits that were closed last March due to the outbreak of the COVID-19 pandemic. This includes the trading pits for corn, wheat, soybeans and other ag commodities. Contracts for ag commodities will be traded only electronically. However, CME Group’s Eurodollar options pit, which was reopened last August, will remain open, allowing these contracts to continue to trade in both open outcry and electronic venues. The once busy trading floors saw traffic decline as electronic trading became popular. The ongoing transition led to trading pits closing in Chicago and New York in 2015. The Chicago Tribune reports that when CME Group temporarily closed its 11 trading pits last March, about 450 traders, clerks, and employees were on the trading floor most days. CME Group also announced it will delist its full-size, floor-based S&P 500 futures and options contracts following the expiration of the September 2021 contracts. ************************************************************************************ White House Announces New Vaccine Goals, Funding for Rural Communities The White House this week announced a new national vaccine administration goal of 70 percent of all Americans by July 4. President Joe Biden is also taking additional steps to get vaccines to rural communities. The administration is sending new vaccine allocations to rural communities, along with granting $100 million in funding to rural health clinics. The funding will be used to assist rural residents in accessing vaccinations as well as education and outreach efforts around the benefits of vaccination. Additionally, the Health Resources and Services Administration is providing nearly $860 million in funding to help rural health clinics and rural hospitals. The funding will help broaden rural care providers COVID-19 testing and mitigation to slow the spread of the virus in their communities. HRSA will provide up to $100,000 per clinic to each of the 4,600 federally designated rural health clinics and up to $230,000 per hospital to 1,730 small rural hospitals. ************************************************************************************ NBB Requests Meeting with EPA Administrator Regan The National Biodiesel Board this week sent a letter to Environmental Protection Agency Administrator Michael Regan requesting a meeting to present the findings of a new study. The study, according to NBB, assesses and quantifies the public health benefits and resulting economic savings of using 100 percent biodiesel in U.S. communities near heavy transportation corridors. The organization says heavy transportation corridors are an emerging area of concern for the EPA. Kurt Kovarik, NBB Vice President of Federal Affairs, writes in the letter, "We believe that including biodiesel and renewable diesel in the administration's plans to address carbon is fully consistent with your agency's focus on environmental justice.” The study shows switching to 100 percent biodiesel would result in 340 fewer premature deaths, 46,000 fewer lost workdays and $3 billion in avoided health care costs. Additionally, the study says the switch would bring a 45 percent reduction in cancer risk for communities near heavy-duty transportation corridors. ************************************************************************************ Farmers Union Members Advocate Immediate Climate Action Through Days of Advocacy, an event pairing National Farmers Union members with lawmakers, the organization is advocating legislative solutions to address climate change. NFU members are participating in virtual meetings this week and next with members of the House and Senate Agriculture Committees. They are advocating for voluntary, incentive-based programs and market initiatives that help farmers implement climate-friendly practices and install on-farm renewable energy systems. NFU President Rob Larew says, “While we’re really encouraged by the strong, bipartisan support for climate action, we want to ensure these efforts take farmers’ unique needs and interests into account.” To ensure such programs are executed smoothly, they will also promote robust funding for technical assistance. Additionally, participants and other Farmers Union members will sit down with Department of Agriculture officials to learn more about the administration’s climate initiatives. The members attending the meetings sit on NFU’s Climate Change Policy Advisory Panel, through which they advise the organization’s climate-related efforts. ************************************************************************************ NCGA Yield Contest Opens Farmers can now enter the National Corn Growers Association’s yield contest for this year. NCGA says entrants contribute to a pool of shared knowledge that helps all corn farmers in challenging years. The National Corn Yield Contest offers challenges and rewards to each entrant. In 2020, the organization says 7,844 growers accepted the challenge, enjoyed the friendly competition with fellow farmers and helped provide information that will lead to future innovations. This year, to add transparency and visual confirmation to high-yield entries, the contest requires a photo inclusion to be submitted online with the recheck yield results. Winners will receive national recognition in Progressive Farmer's Best in the Field Winner's Guide in mid-February. State winners will be honored at the 2022 Commodity Classic in New Orleans, Louisiana. Contest winners will be announced on December 15. For the 2021 Entry and the Harvest Rule Book, along with information on changes this year and other resources, visit NCGA.com. ************************************************************************************ USDA Invests $92.2 Million in Grants for Local, Regional Food Producers The Department of Agriculture Wednesday announced $92.2 million in competitive grant funding under the 2018 Farm Bill’s Local Agriculture Market Program. The program grants are funded through the Farmers Market program as part of USDA’s Pandemic Assistance for Producers Initiative. USDA launched the initiative in March to address shortfalls and disparities in how assistance was distributed in previous COVID-19 assistance packages, with a specific focus on strengthening outreach to underserved producers and communities and small and medium agricultural operations. The grants support the development, coordination and expansion of direct producer-to-consumer marketing, local and regional food markets and enterprises and value-added agricultural products. Agriculture Secretary Tom Vilsack says, “These grants will help maximize opportunities for economic growth and ingenuity in local and regional food systems to kickstart this transformation.” USDA encourages projects that assist underserved local and regional agricultural businesses, producer networks and associations, and local and tribal government in responding to COVID-19 disruptions and impacts.
| Rural Advocate News | Thursday May 6, 2021 |
Washington Insider: Debt Limit Issue Again on the Horizon The issue of the nation's debt limit is set to return as something that Congress will have to deal with in coming months. The New York Times reports that the issue is again coming to light after the 2019 action by a then-bipartisan Congress to suspend the debt limit until July 31. The suspension was aimed at putting the budget issue off until after the elections and keeping it out of politics. But now the matter is fast approaching as lawmakers will have to address. While the U.S. Treasury can take what are labeled "extraordinary measures" to avoid hitting the debt limit, the agency is warning that they are not sure this time around how long they can use those tools before the debt limit is hit. "In light of the substantial COVID-related uncertainty about receipts and outlays in the coming months, it is very difficult to predict how long extraordinary measures might last," the agency said in a section of its so-called quarterly refunding statement on Wednesday, according to Bloomberg. "Treasury is evaluating a range of potential scenarios, including some in which extraordinary measures could be exhausted much more quickly than in prior debt limit episodes." Some of those extraordinary measures can suspending sales of state and local government series Treasury securities and suspending reinvestment of the Exchange Stabilization Fund, the Times said. Treasury can also redeem existing investments of the Civil Service Retirement and Disability Fund and the Postal Service Retiree Health Benefits Fund and suspend reinvestment of the Government Securities Investment Fund. In a briefing, a Treasury official would not commit to how long those tools could be tapped, again pointing to the uncertainty over the COVID situation. "If Congress has not acted by July 31, Treasury, as it has in the past, may take certain extraordinary measures to continue to finance the government on a temporary basis," said Brian Smith, Treasury's deputy assistant secretary for federal finance. "In light of the substantial COVID-related uncertainty about receipts and outlays in the coming months, it is very difficult to predict how long extraordinary measures might last." While Treasury could also prioritize what debts they will pay and which ones they will not, Smith simply said, "Congress needs to raise or suspend the debt limit, that's the way to resolve this issue." With Democrats in charge of the House and Senate, they may opt to use budget reconciliation to push through an increase in the debt ceiling. But even then, they will have to count on all 50 Senate Democrats and nearly every House Democrat to even use that option. If that approach is not used, the Times warned that Republicans could use it as leverage for spending cuts as they did several years ago. While not an immediate issue, the matter will become one later this year. And with the level of debt piling up, the interest payments on that debt will be very important. The current level of interest rates has reduced the cost to service the debt. But if conditions which the market fear relative to inflation manifest themselves near the time the debt ceiling issue has to be addressed, that will add to the cost servicing the debt. Plus, fears the U.S. could default on its obligations could send shockwaves through financial markets, another unwelcome development. So, we will see. But producers will need to follow this issue closely as the deadline for action approaches. It could easily become a more-protracted fight than most would like. And a fight on that front could spill into several areas of the government, Washington Insider believes.
| Rural Advocate News | Thursday May 6, 2021 |
US Ag Export Value Shot Higher in March Along With Imports The value of U.S. ag exports rebounded sharply higher in March to $15.34 billion after slipping to $13.87 billion in February. But the big rise in exports was nearly equaled by sharp boost in the level of imports which hit a record $14.56 billion in March after having fallen to $11.86 billion in February. The result was a trade surplus of $774 million, a sharp decline from the $2 billion surplus in February and marked the first surplus under $2 billion for Fiscal Year (FY) 2021. The export mark also means U.S. ag exports have been valued at $15 billion or more five out of the six months so far in FY 2021. This brings cumulative FY 2021 ag exports to $92.42 billion against imports that total $76.87 billion, for a cumulative surplus of $15.5 billion. USDA in February forecast U.S. ag exports at a record $157 billion against imports at $137.5 billion which would also be a record. USDA will update its forecast for U.S. ag exports May 26. Historical patterns are for U.S. ag import values to increase in the next few months while export values have typically softened
| Rural Advocate News | Thursday May 6, 2021 |
GAO Embarking On Extensive RFS Exam The Environmental Protection Agency (EPA) this week published a notice in the Federal Register that they are turning over information to the Government Accountability Office (GAO) on the Renewable Fuel Standard, including data that could be considered confidential business information (CBI) relative to small refinery exemptions (SREs). EPA said they will disclose to GAO "all documents, information, and data related to all small refinery exemption petitions received by EPA from the start of the RFS program through the present." EPA said GAO will either return the information to EPA or destroy it when their study is done, and they noted there are rules preventing "any further disclosure" of such information. That suggests GAO is embarking on a major exam of the RFS and SREs in particular, most likely coming at the request of a lawmaker or lawmakers. It is not clear when the study will be completed, but this could be a key report on what has been a dicey subject in the biofuels arena.
| Rural Advocate News | Thursday May 6, 2021 |
Thursday Watch List Markets USDA's export sales report is due out at 7:30 a.m. CDT Thursday, along with weekly U.S. jobless claims, a report on U.S. productivity in the first quarter and an update of the U.S. Drought Monitor. The Energy Department will release its weekly report of natural gas inventory at 9:30 a.m. CDT. Trader attention will stay glued to the latest weather forecasts. Weather Cool and dry conditions will cover northern and central crop areas Thursday. Precipitation will be confined to showers in portions of the eastern Midwest. The cooler pattern is unfavorable for crop progress. There is also an extreme wildfire threat in the northwestern Midwest and northeastern Plains later Thursday.
| Rural Advocate News | Wednesday May 5, 2021 |
Ag Economy Barometer Mostly Unchanged from April The April Ag Economy Barometer was 178, virtually unchanged from a month earlier. Last month, the index stood at 177, and just five points below its all-time high of 183 set back in October. Compared to March, however, there was a small change in producers’ perspective on the ag economy as they became more optimistic about the future, while their appraisal of the current situation waned. In April, the Index of Future Expectations rose five points to 169, and the Index of Current Conditions moved down seven points to 195. Ag producers continue to report expectations for solid financial performance on their farms and expect farmland values to continue to rise over the next year. However, producers were a bit less optimistic about the long-term outlook for farmland values, suggesting there might be some concern that recent farmland price rises might not be sustainable. And 95 percent of producers surveyed say they are concerted over new tax changes being considered. ************************************************************************************ Dairy Checkoff Working with Entrepreneurs to Address Industry Challenges Dairy Management Inc. has entered a partnership that will provide access to a network of inventors and entrepreneurs. The network is tasked with providing marketplace solutions for industry challenges focused on health and sustainability. DMI is partnering with Venture Winston Grants, which has designed a competition where startup companies can apply for funding that will allow them to incorporate dairy into their concepts in one of four areas. The areas include health and nutrition, biobased products, smart communities of the future and regenerative agriculture. Dwyer Williams, chief transformation officer for DMI, says, “We want to disrupt the marketplace before we’re disrupted and that requires looking for unexpected partners outside of the dairy industry.” The process is underway to identify potential startups who are a match for DMI’s four focus areas, with the expectation to have the winners named in January 2022. Barnes says once a technology is completed, it could take two to three years to have concepts commercialized and in the marketplace. ************************************************************************************ Biofuel Groups Welcomes EPA’s Moves to Vacate Last-Minute SREs The Environmental Protection Agency this week filed a motion in the D.C. Circuit Court to vacate three last-minute small refinery exemptions issued on January 19, 2021. In the last hours of the Trump Administration, the EPA issued the three waivers to Sinclair. According to EPA’s April 30 filing, the agency under the previous administration “failed to properly analyze the waiver petitions submitted by Sinclair.” The filing says the Trump administration’s EPA “granted exemption extensions that EPA now believes are ‘outside the scope of the EPA’s statutory authority.’” Renewable Fuels Association President and CEO Geoff Cooper states, “We strongly support EPA’s request for vacatur and remand of these three midnight-hour exemptions.” Growth Energy CEO Emily Skor says, “EPA is addressing the previous administration’s mishandling of the SRE program,” adding, “We are hopeful that EPA will continue to rein in the SRE program to achieve its limited purpose and ensure that the RFS advances the biofuels industry.” ************************************************************************************ Farmers National: Interest in Farmland Selling to Increase Land sales activity was flat the past few years, but that may soon change. The lower supply of farms for sale has been one of the factors that supported land values after the 2013 peak in prices paid for ag land. Farmers National Company reports seeing indications for increased land sale activity through to the end of 2021. Farmers National Company and its agents have already received an increased number of calls from landowners who are thinking about selling later in the year. The company says the main reason that will drive the current and upcoming sales decisions is that landowners are seeing a large and rapid run-up in land prices to levels last seen in 2013. The other reason that there might be more sales activity this fall is that a market doesn't like uncertainty. Landowners are factoring in both the higher land prices and the uncertainty of future tax policy to make the call whether to sell now or keep the land. ************************************************************************************ Consumers Considering Health, Environmental Impacts of Food Post-COVID-19 Consumers are increasingly considering their health and environmental sustainability as they shop for food. The COVID-19 pandemic has accelerated the trend in the past year, according to a panel of experts participating in Farm Journal Foundation's Speaker Series. Half of consumers have made changes to what they eat in the past two years to lead a more sustainable lifestyle, according to Michael Hughes of FMCG Gurus. Hughes says changes to consumption patterns include reducing food waste, eating more local and fresh foods, and making greater attempts to check the sustainability credentials of food companies. Tina Owens of Danone North America told the panel, "Consumers are looking even more than they were before the pandemic to play activist with their grocery dollars." And Christine Daugherty of PepsiCo says consumer brands have a large role to play in driving sustainability. PepsiCo recently unveiled a set of Positive Agriculture goals, which aim to impact seven million acres of farmland and reduce three million tons of greenhouse gas emissions by the end of the decade. ************************************************************************************ USDA: World Food Gap to Narrow by 2030 The intensity of global food insecurity, indicated by a measure called the food gap, is projected to lessen over the coming decade in the world's poorest regions. The improvement comes amid decreased incomes associated with pandemic-related drops in Gross Domestic Product, according to the Department of Agriculture. The food gap measures how much food is needed to raise consumption at every income level to meet the nutritional target of 2,100 calories per capita per day, a minimum intake to sustain a healthy and active lifestyle. For the four regions studied in the Economic Research Service International Food Security Assessment, the food gap in 2020 ranged from a low of 12 percent of the daily caloric target in North Africa to 20 percent in Sub-Saharan Africa. Income growth, along with relatively stable prices for major grains and lower population growth, are contributing factors to this improvement, However, the gap is 12 percent higher than earlier estimates reported by USDA after pandemic-related revisions.
| Rural Advocate News | Wednesday May 5, 2021 |
Washington Insider: Inflation and Markets It's hard to read nearly any market-oriented publication and major media without seeing some reference to inflation. The prospect of rising prices for goods that consumers purchase remains a concern as commodity prices have risen and the government either has or wants to pump trillions of dollars into a U.S. economy that has been battered by the COVID pandemic. The U.S. Federal Reserve, and Chairman Jerome Powell, have taken a stance that inflation will show, but it will be "transitory," a term to indicate that they do not see a sustained rise in inflation that could hamper the U.S. economy as the U.S. central bank would likely have to increase interest rates in order to quell price increases. One of their goals is price stability. Enter Treasury Secretary Janet Yellen, herself a former Fed chair. In remarks to the Atlantic on Tuesday, Yellen suggested that the Fed may have to raise interest rates, spooking investors. "It may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat, even though the additional spending is relatively small relative to the size of the economy," she said in a prerecorded interview at the Atlantic's Future Economy Summit. Stock indices fell moved lower in response to the comments as many in the marketplace have been betting the Fed will have to increase rates in a bid to quell inflation that many expect will be moving higher. Later, in remarks to a Wall Street Journal CEO Council Summit, Yellen shifted her comments, with many outlets noting she "walked back" her earlier inflation comments. "I don't think there's going to be an inflationary problem, but if there is, the Fed can be counted on to address it," Yellen remarked. This market dustup even with several Fed officials reiterating the view that the rise in inflation is going to be temporary in nature. She also noted later in the day that the $4 trillion in spending now being advocated by President Joe Biden -- a $2.25 trillion infrastructure plan and another $1.8 trillion American Families Plan -- would not spur inflation as the spending would be spread out over eight to 10 years. What is somewhat unusual in this situation is that Yellen commented on monetary policy in the first place. Typically, there has been an unwritten rule that an administration does not comment on monetary policy and that the Fed does not wade into fiscal policy which is the responsibility of Congress and the administration. The situation arises as prices for corn, soybeans, wheat and other commodities have risen sharply. Indeed, Wheat prices jumped some 20% or more in April, corn prices gained more than 30% and soybean prices were up some 10%, based on futures market prices. This coming while U.S. farmers are in the midst of planting this year's corn and soybean crops. The price increases have come as supplies of corn and soybeans in particular have fallen and demand from foreign buyers like China has been strong. And couple that with crop concerns in Brazil and the price rise has materialized. U.S. farmers have been quickly planting this year's corn, soybean and spring wheat crops. But global markets are hopeful that the U.S. does not experience any major impacts to the seed that has only just gone into the ground. The commodity price increases are among those that do raise inflationary concerns as they raise raw material costs. They also come after farmers have seen market prices battered by large supplies, trade wars and the Pandemic. But as history has shown, low prices cure low prices. And that brings the inflation situation into a broader focus as the U.S. economy pulls up out of the depths of the pandemic. So we shall see. Any potential rise in interest rates would increase costs for farmers as they seek to operate or buy farmland. It becomes a cost factor for farm incomes that have been supplemented during the low-price time by government support. It is a situation which farmers will need to monitor, adding yet another watchpoint for the sector as crops come out of the ground and move toward maturity, Washington Insider believes.
| Rural Advocate News | Wednesday May 5, 2021 |
Dairy Producers Press USTR Tai on Key Dairy Trade Issues Eliminating non-tariff barriers to U.S. dairy exports and expanding market access for U.S. dairy products are among the issues that U.S. dairy producer representatives raised in a Monday meeting with U.S. Trade Representative Katherine Tai. Representatives of the National Milk Producers Federation (NMPF), led by its President and CEO Jim Mulhern, emphasized to Tai a need for enforcement of existing trade agreements such as ensuring Canada meets its trade obligations; countering European Union attempts to misuse common food names through inappropriate geographical indication rules; engaging with Mexico to ensure a normal flow of trade; and concluding new market expanding trade agreements.
| Rural Advocate News | Wednesday May 5, 2021 |
Coalition Calls on USDA to Launch Pilot Projects on Carbon Banks Food and Agriculture Climate Alliance (FACA) is calling on USDA to launch pilot projects to explore creating a carbon bank, an idea not popular with Republicans on Capitol Hill. The group released recommendations for how USDA should think about a potential carbon bank. But the report comes after several GOP lawmakers have made clear they prefer a private industry approach rather than getting USDA and the government involved in creating a carbon bank. Initial reviews of the alliance recommendations were that they reflected a committee approach that lacked specifics. One of the FACA members is the American Farm Bureau Federation (AFBF), and its leader Zippy Duvall has indicated he was still not totally on board with the concept. There also remains a question on whether or not USDA has the authority under the Commodity Credit Corporation (CCC) to create and/or operate a carbon bank.
| Rural Advocate News | Wednesday May 5, 2021 |
Wednesday Watch List Markets At 7:15 a.m. CDT Wednesday, ADP will report on private sector job gains in the U.S. for April, an early hint of Friday's unemployment report. At 9:30 a.m. CDT, the U.S. Energy Department will release its weekly inventory report, including ethanol production. The latest forecasts for Brazil and the U.S. will continue to get plenty of attention as will any news of an export sale. Weather Wednesday features light rain showers in the Northern and Central Plains and moderate to locally heavy rain in the eastern Gulf Coast. Other primary crop areas will be dry. The northern moisture will offer only marginal drought easing, while the southern rain may be heavy enough to cause flood concern. Below normal temperatures in many areas will slow the pace of fieldwork and early crop growth.
| Rural Advocate News | Tuesday May 4, 2021 |
FACA Recommends USDA Use Pilot Projects to Build Toward a Carbon Bank The Food and Agriculture Climate Alliance, or FACA, delivered recommendations Monday to the Department of Agriculture regarding a potential carbon bank. The more than 70 members of the alliance, including the American Farm Bureau Federation, says USDA should first develop a series of pilot projects. The focus areas include scaling climate solutions to help increase adoption of climate-smart practices, removing barriers to adoption, improving carbon account standards and ensuring equitable opportunities. The alliance says information gained from the pilots will serve two critical purposes. First, it will help USDA build a durable foundation for a carbon bank that earns long-term bipartisan congressional support. Second, it will help USDA build confidence in how to verify the climate benefits delivered by specific practices and management approaches. Read FACA’s full carbon bank recommendations and see a full list of member organizations at agclimatealliance.com. ************************************************************************************ More Farmers Suing USDA Alleging Discrimination The Wisconsin Institute for Law and Liberty last week filed a lawsuit in federal court challenging the alleged race discrimination in the American Rescue Plan. Specifically, the organization targets a provision to offer loan forgiveness based on racial categories. The organization filed the lawsuit Thursday on behalf of five plaintiffs from Wisconsin, Minnesota, South Dakota, and Ohio. The American Rescue Plan Act provides billions of dollars of debt relief to socially disadvantaged farmers and ranchers. But the law’s definition of socially disadvantaged includes explicit racial classifications: farmers and ranchers must be Black or African American, American Indian or Alaskan Native, Hispanic or Latino, or Asian American or Pacific Islander. Other farmers are ineligible for the program, according to the plaintiffs. The lawsuit alleges discrimination, calling the program "illegal and unconstitutional." The lawsuit asks the court to issue an injunction and a declaratory judgment that the racial classifications in the farmer loan forgiveness program are unconstitutional. ************************************************************************************ Farm Bureau Launches Farm State of Mind Resource The American Farm Bureau Federation just launched a comprehensive online directory of resources for farmers, ranchers and their families who are experiencing stress and mental health challenges. In recognition of May as Mental Health Month, the directory provides users with stress and mental health resources in every state. Farm Bureau President Zippy Duvall says, “It is so important to spread the word that no one has to go it alone.” The directory, which is on the Farm State of Mind website at farmstateofmind.org, features listings for crisis hotlines and support lines, counseling services, training opportunities, podcasts, videos, published articles and other resources. National research polls conducted and published by AFBF in 2019 and 2021 showed that a number of factors including financial issues and the impact of the COVID-19 pandemic are impacting farmers’ mental health, highlighting the need to identify local resources that can help farmers and ranchers cope with chronic stress and mental health concerns. ************************************************************************************ Dairy Groups Welcome U.S. Callout of EU Food Name Protections The Consortium for Common Food Names, National Milk Producers Federation and U.S. Dairy Export Council recently commended U.S. Trade Ambassador Katherine Tia for announcing an opinion on geographic indicators. USTR’s Special 301 Report, an annual publication tallying global challenges pertaining to intellectual property issues, called out the EU’s policy of blocking fair competition through the pursuit of geographical indications. The dairy groups say geographic indicators restrict the use of common food and beverage terms, which create barriers to trade in products relying on common food names. The Consortium for Common Food Names Executive Director Jaime Castaneda says, “USTR has accurately diagnosed the problem,” adding, “Now the task before the U.S. is to take the necessary steps to effectively curb this scourge to U.S. food and agricultural producers.” The Consortium for Common Food Names filed extensive comments with USTR outlining geographic indicator-related developments, foreign governments’ roles in driving those policies and the impacts on U.S. farmers and food producers. ************************************************************************************ Kind Joins Organic Caucus in Introducing Legislation to Improve Organic Standards Wisconsin U.S. Representative Ron Kind and a group of bipartisan House members last week introduced the Continuous Improvement and Accountability in Organic Standards Act. The legislation seeks to improve the federal process for the oversight of organic food standards. Kind is co-chair of the bipartisan House Organic Caucus, stating, “This legislation will take necessary steps to ensure our organic farmers can continue to succeed and innovate for generations to come." The Wisconsin Democracy says the bill will establish a new framework for advancing organic standards and improve oversight and enforcement of new rules and guidance. Illinois Republican Representative Rodney Davis, also co-chair of the House Organic Caucus, says, “Our bipartisan legislation will clear the backlog of rule recommendations from the National Organic Standards Board.” The Organic Foods Production Act of 1990 directed USDA to establish national standards and assure consumers that organically produced products meet a consistent standard. However, the lawmakers say USDA inaction has stifled innovation. ************************************************************************************ Illinois’ Bustos Not Seeking Reelection Illinois Democrat Cherri Bustos announced she will not seek reelection after completing her current term in the House of Representatives. In a video posted on Twitter, Bustos says, “I feel it’s time for a new voice.” Bustos represents Illinois’ 17th District, a largely rural district, and has served on the House Agriculture Committee since first being elected in 2013. This Congress, Bustos chairs the Subcommittee on General Farm Commodities and Risk Management. The subcommittee has jurisdiction over policies, statutes and markets relating to commodities like corn, soybeans, wheat, pulse crops and more. It also oversees the Commodity Credit Corporation and crop insurance programs. Congresswoman Bustos also serves as a member of the Subcommittee on Commodity Exchanges, Energy and Credit. Bustos made the announcement on Friday. The Illinois Dem County Chairs’ Association thanks Bustos for her service, adding, “Her commitment to her district is unparalleled, particularly to the hard-working middle class and rural communities.”
| Rural Advocate News | Tuesday May 4, 2021 |
March DMC Payments Triggered By Margin Prices Payments under the Dairy Margin Coverage (DMC) program are triggered when the national all milk price and the national average feed cost (margin) falls below the margin trigger levels selected by producers. The calculations for March for milk prices and feed components (corn, blended alfalfa hay, and soymeal) will trigger prices for March 2021 as the national average margin is $6.46 per hundredweight (cwt). As a result, dairy operations that elected Tier 1 margin coverage levels at $9.50, $9.00, $8.50, $8.00, $7.50, $7.00, and $6.50 per cwt., and Tier 2 margin coverage levels at $8.00, $7.50, $7.00, and $6.50 per cwt. will be issued a payment. Payments range from $0.04 per cwt. for the $6.50 margin trigger to $3.04 per cwt. for the $9.50 margin trigger coverage level.
| Rural Advocate News | Tuesday May 4, 2021 |
USTR Section 301 Report Notes US-China Phase One Deal Exam Ongoing The Office of the U.S. Trade Representative (USTR) on Friday (April 30) issued its 2021 Special 301 report, a 90-page recap of the state of intellectual property (IP) protection and enforcement with U.S. trading partners. China, not surprisingly, garnered nine of the pages, with attention on several issues regarding IP protections of movies and other media. The report notes that China agreed to several changes via the Phase One agreement that went into effect in 2020, but the report noted that a review of that deal remains ongoing. That echoes what U.S. Trade Representative Katherine Tai told lawmakers last week -- that she was eager to kick off the top-to-bottom review of the agreement to determine areas of success and areas where more work is needed. "The United States-China Economic and Trade Agreement (Phase One Agreement), signed in January 2020, also includes several trade secret commitments to address a number of long-standing concerns in China, including on expanding the scope of civil liability, covering acts such as electronic intrusions as trade secret theft, shifting the burden of producing evidence, making it easier to obtain preliminary injunctions to prevent use of stolen trade secrets, allowing criminal investigations without need to show actual losses, ensuring criminal enforcement for willful misappropriation, and prohibiting unauthorized disclosure of trade secrets and confidential business information by government personnel or third-party experts," the report said.
| Rural Advocate News | Tuesday May 4, 2021 |
Tuesday Watch List Markets The U.S. Census Bureau will release the U.S. trade deficit for March at 7:30 a.m. CDT, followed by a report on U.S. factory orders at 9 a.m. CDT. Traders will look at the latest weather forecasts and watch for any news of export sales. USDA will release export data for agricultural goods later Tuesday morning. Weather Light to moderate rain is in store for the eastern and southern Midwest through the Delta and Southeast Tuesday. The rain will disrupt planting progress. Dry conditions elsewhere will favor fieldwork. Temperatures will be above normal in the southeast and seasonal to below normal in other crop areas.
| Rural Advocate News | Monday May 3, 2021 |
New Study Shows Health Benefits of Biodiesel A new study sponsored by the National Biodiesel Board shows switching to biodiesel will result in several health benefits, including decreased cancer risk, fewer premature deaths, and reduced asthma attacks. The research got conducted at 13 sites across the U.S. that get regularly exposed to high rates of petroleum diesel pollution. Researchers found that switching to 100 percent biodiesel in the home heating oil and transportation sectors would provide immediate community health benefits that can be measured in reduced medical costs and health care benefits, such as preventing 340 premature deaths every year. Other benefits include a 45 percent reduction in cancer risk when heavy-duty trucks like semis use B100 and an 86 percent reduced risk when biodiesel is used for home heating oil. Other yearly health benefits include 203,000 fewer asthma attacks, 46,000 fewer sick days, and $3 billion less in health care costs after switching to B100. “This study quantifies the health benefits and shows that by using renewable fuels like biodiesel and renewable diesel, we are bringing positive change to people’s lives, the nation’s health, and the economy,” says NBB CEO Donnell Rehagen. ********************************************************************************************** California Court Rules on Chlorpyrifos A federal court in California gave the Environmental Protection Agency two choices on the insecticide chlorpyrifos (Klor-PEER-ah-fahs). The agency has 60 days to write a new rule to allow for the safe use of the insecticide, or it can halt all food residue tolerances of chlorpyrifos, which would basically ban most uses of the product. The Ninth Circuit Court of Appeals in San Francisco says the EPA has had long enough to respond to a 2007 petition by environmental groups to ban the chemical. The court says, “The EPA has had almost 14 years to publish a legally sufficient response to the 2007 petition.” The court’s ruling also says that, during that delay, the EPA has exposed a generation of America’s children to unsafe levels of chlorpyrifos. “By remanding back to the EPA one last time, rather than compelling the immediate revocation of all chlorpyrifos tolerances, the court is being more than tolerant. But the EPA’s time is now up.” In a statement to DTN, the agency says it’s reviewing all its options. “As the agency pursues its mission to protect human health, including that of children and the environment, EPA is committed to ensuring the safety of pesticides and other chemicals,” the agency says. ********************************************************************************************** U.S., E.U. Ag Groups Ask for End to Retaliatory Tariffs A total of 88 U.S. and European organizations representing a wide range of industries are asking for an end to trade tariffs between the U.S. and E.U. The groups sent a letter to leaders on both sides of the Atlantic asking for the permanent removal of the tariffs on sectors unrelated to the ongoing Trans-Atlantic trade dispute. The Hagstrom Report says the organizations range from agricultural products to consumer goods. The letter opens by thanking the U.S. and E.U. for the four-month suspension of tariffs imposed in connection to the World Trade Organization dispute concerning civil aircraft subsidies. “We are hopeful that this suspension will help reset the vital transatlantic trade relationship and lead to the permanent removal of all additional and retaliatory tariffs on products which are unrelated to the sectors subject to ongoing transatlantic trade disputes,” the groups say in the letter. “It’s important for our members, already hit hard by the economic impact of COVID-19, to be able to rely on the continued suspension or complete removal of these tariffs after July 2021.” They say the transatlantic relationship is of enormous economic importance to their sectors and are eager to see it protected and nurtured. ********************************************************************************************** Ag Groups Respond to USDA Climate Smart Solutions The National Association of Conservation Districts submitted a letter to the USDA in response to the agency’s request for comments on climate smart solutions to mitigate the effects of climate change. “Climate-smart agriculture and forestry need significantly more government investment and action to meet the need of oversubscribed programs,” says NACD President Michael Crowder. Among the suggestions, the NACD Climate Action Task Force reiterated its request for at least $1.2 billion in the Fiscal Year 2022 discretionary funding for conservation operations to bolster local technical assistance. National Farmers Union President Rob Larew says carbon markets represent a great opportunity for farmers to help in the effort to mitigate climate change, but they do come with risks. Larew calls on the USDA to minimize those risks and provide more certainty for farmers by creating a “public third-party verification system,” facilitating access to information about the markets, and working to “prevent consolidation in agricultural carbon markets and the corporate purchasing of farmland for the generation of carbon credits.” Growth Energy CEO Emily Skor submitted comments pointing out that plant-based biofuels like ethanol are a readily available, renewable energy solution that reduces carbon emissions today. “Recent studies demonstrate that biofuels can immediately contribute to lowering greenhouse gas emissions and decarbonizing our transportation sector,” Skor says. *********************************************************************************************** Poultry Supply Chain Slowing Down as Demand Rises Chicken is in such high demand that U.S. restaurants and processing companies are having trouble keeping up. Supply challenges are hitting all sorts of chains that serve chicken, including bone-in chains, burger joints that sell chicken sandwiches, pizza chains selling wings, as well as traditional wing restaurants. The problem has led to higher chicken prices, especially for chicken wings. Restaurant Business Dot Com says prices will stay at record levels for the foreseeable future. “We believe these higher prices are likely to continue in 2021 as suppliers are struggling to hire enough people to process chicken, thus placing unexpected pressure on the number of birds that can get processed,” says Charlie Morrison, CEO of Wingstop. “That’s negatively affecting the supply of all parts of the chicken in the U.S. and not just wings.” Prices for bone-in wings on the spot market are up more than 50 percent year over year. KFC introduced a new chicken sandwich earlier this year and is having trouble keeping up with demand. While there are multiple challenges facing chicken supplies, a lot of the challenges are based on demand. Chicken sandwich demand has risen dramatically, while chicken wings have seen even greater demand increases. *********************************************************************************************** Topsoil Moisture is Lacking in Half of the Midwest Large parts of Iowa, Wisconsin, Illinois, Indiana, and Ohio are abnormally dry, and most of Michigan is in moderate drought due to limited spring precipitation. Last week’s Drought Monitor shows arid conditions covered 48 percent of the Midwest, the heart of U.S. corn and soybean production. That’s compared to 32 percent a week earlier. “Much of the Ohio Valley states, as well as Iowa to lower Michigan, had little to no precipitation over the past week,” the drought monitor reports. Almost all of Michigan’s Lower Peninsula and the eastern third of its Upper Peninsula were in moderate drought. Precipitation deficits over the last 90 days have been building, streams are low, and soil moisture continues to dry in the Lower Peninsula. The USDA rated topsoil moisture as short or very short in half or more of Colorado, Montana, Wyoming, South Dakota, and North Dakota. Several Colorado counties were asked to voluntarily conserve water.
| Rural Advocate News | Monday May 3, 2021 |
Washington Insider: Administration Prepares to Boost Food Stamps Bloomberg is reporting this week that the Biden administration is quietly laying the groundwork for a long-term increase in food aid -- without going through the ordeal of a fight with congressional Republicans. The change apparently can be achieved by an obscure USDA shopping list used to determine food stamp benefits, known as "the market basket." A review of the so-called Thrifty Food Plan, ordered by Biden two days after he took office, could trigger an automatic increase in benefits as soon as Oct. 1, a day after expiration of a temporary 15% boost in food stamp payments that President Biden included in his $1.9 trillion COVID-relief package. James Ziliak, director of the Center for Poverty Research at the University of Kentucky, said the re-evaluation "could result in an upward adjustment of 20% or more in the benefits." That would amount to roughly a $136-a-month increase in the maximum benefit for a family of four, which was $680 before the temporary pandemic-related increase. "This is really meaningful," said Jason Furman, a Harvard Kennedy School of Government professor who was chairman of President Barack Obama's Council of Economic Advisers. "It's one of the bigger things government can do for poverty without Congress." The reappraisal culminates a years-long campaign by anti-hunger advocates to reassess the market basket. The value hasn't been increased other than adjustments for inflation for six decades. The move is emblematic of a broad commitment to anti-poverty programs across the Biden administration. In April, the Agriculture Department extended a universal free school lunch program tied to pandemic relief through the entire 2021-22 school year. However, it's a sharp reversal from the Trump administration, which tried to limit eligibility for food aid -- though the proposed restrictions were overturned by courts. Food stamps, formally known as the Supplemental Nutritional Assistance Program, once enjoyed broad bipartisan support, but have evolved into a partisan flashpoint in recent years. House Republicans tried to impose cuts in 2013 and 2018, the last two times the program was reauthorized as part of the five-year Farm Bill. Biden often speaks of one of the most jarring images of the pandemic-year economic collapse -- cars lined up for miles outside food banks to wait for a box of groceries -- and invoked it again in his first address to Congress as he explained the importance of anti-hunger initiatives in his vision for the country. "I didn't ever think I'd see that in America," he told millions watching at home. The pandemic stirred public concern over hunger as seemingly secure middle- and working-class families suddenly became vulnerable. By December, one in seven U.S. households reported not having enough to eat sometimes or often in the prior week and in January 41.8 million Americans were on food stamps -- 4.7 million, or 12.8%, more than a year earlier. Advocates argue that the $22-a-day food budget USDA currently sets for a family of four is woefully inadequate and relies on outdated, unrealistic assumptions. The market basket assumes a family eats more than five pounds of beans a week, for example. And outside studies have found that the food plan requires spending about two hours a day preparing meals, largely from scratch, at a time the average American family spends just a half hour on daily food preparation. SNAP benefits are calculated on a sliding scale based on income and the number and age of people in a household. Recipients are expected to spend 30% of their net income on food, with food stamps making up the deficit from the USDA food budget. Benefits can only be used to purchase groceries. More than a quarter of the households enrolled in SNAP exhaust their monthly benefits in the first week after issuance, and more than half do so by the second week, according to a 2011 USDA study. The Obama administration considered changing the USDA food budget and took the decision all the way up to the president. But at a June 2015 Oval Office meeting with his top economic and domestic policy advisers, Obama ultimately decided not to tamper with the market basket, mindful that Republicans then controlled both houses of Congress, according to Furman. With Democrats now holding narrow majorities in the House and Senate, "the Republicans could put up a good fight, but at the end of the day I don't think they could stop it," said Mike Conaway, R., Texas, a former Republican House Agriculture Committee chairman who retired from Congress last year. The U.S. has periodically reviewed the market basket, first established as the Economy Food Plan in 1961 and updated in 1975 as the Thrifty Food Plan, to adjust for changes in nutritional guidelines and food consumption patterns. The most recent review came in 2006. Yet the reviews were always constrained to keep costs constant. This time, the review won't be required to be cost-neutral, said Stacy Dean, a senior USDA official leading the review on behalf of USDA Secretary Tom Vilsack. The Biden administration isn't officially prejudging the outcome of the review, but officials have made clear they believe current benefit levels aren't sufficient. "It's fair to say that the SNAP benefit is in many cases not adequate enough to provide the help and assistance that is needed," Vilsack told an anti-hunger conference in March, describing the review. "I suspect that we're going to find that the foundation of that program doesn't meet the activities of normal American families today and that may result in some adjustment in terms of the benefit." The USDA nutrition programs were designed to benefit both those in need of food assistance and the producers who supply the products. Program advocates often point out that the increased program levels can be expected to support significant increases in demand for key farm products -- changes likely to be implemented in the coming months and which producers should watch closely as they appear, Washington Insider believes.
| Rural Advocate News | Monday May 3, 2021 |
US Maintains Blockade On Restarting WTO Appellate Body The U.S. this week refused to lift its effective block of the WTO Appellate Body, saying the country was still not in a position to back a plan to open the selection process to fill vacancies on the Appellate Body. The proposal not supported by the U.S. has been backed by 121 WTO members. But the U.S. position of blocking new appointments to the Appellate Body goes back to the Trump administration and so far, the Biden administration has not shifted from that position. There has been speculation that the new U.S. administration might look more favorably at restarting the Appellate Body. But the Biden administration has so far indicated they also want to see reforms to the dispute settlement appeals process. The WTO Appellate Body has been inactive since December 2019 when the U.S. blocked appointing new members, preventing it from having a quorum to decide on appeals to WTO rulings.
| Rural Advocate News | Monday May 3, 2021 |
House Members Don't Press EPA's Regan On Biofuels, Ag Regs The second appearance before Congress on the Fiscal Year (FY) 2022 budget for the Environmental Protection Agency (EPA) did not see issues on biofuels raised nor was there a major focus on any agricultural regulatory issues in the House Appropriations subcommittee session. EPA Administrator Michael Regan reiterated his stance that EPA will work with all stakeholders on various issues. Asked how to address jobs in fossil fuel, coal, natural gas and oil sectors with the push toward electric vehicles (EVs), Regan said EPA would seek to "leverage the technologies to do so," noting that there need to be a "robust conversation" on how to achieve the goals. He noted EPA will come forward in July with its proposal on tailpipe emissions from automobiles and in September relative to methane emissions. On agriculture, Regan reiterated he has established good working relationship with USDA Secretary Tom Vilsack and referenced his actions as a state environmental regulator in terms of addressing issues in the sector. In his appearance Wednesday before a Senate panel on the FY 2022 budget, Regan said that no fuel technology is being excluded as the agency looks at meeting climate goals. He observed that there needed to be a glide path toward alternatives like EVs, and that "ethanol plays a significant role in providing those resources here and now today and will evolve as we start to look at the new futures for advanced biofuels and electric vehicles." As for corn-based ethanol, Regan said, "Agriculture is at the table and biofuel plays a role in reducing our carbon footprint and so do many of the voluntary practices of our ag community to capture carbon and operate in a sustainable manner." His comments still are not perhaps providing a greater deal of clarity on issues surrounding biofuels and other regulatory actions that are expected from the agency.
| Rural Advocate News | Monday May 3, 2021 |
Monday Watch List Markets Starting a new week, traders will check the latest weather forecasts and pause at 8 a.m. CDT for any export sale announcements. An index of U.S. manufacturing is due out at 9 a.m. and follows similar indices for other countries overnight. USDA's weekly grain inspections report is due out at 10 a.m. NASS has a monthly Fats and Oils report at 2 p.m., followed by Crop Progress at 3 p.m. CDT. Weather Light to moderate rain is in store for the eastern Midwest and Southeast Monday, offering useful crop moisture while interrupting planting. Some local flooding is also noted in portions of the central Plains following heavy weekend rain. We'll also see periods of rain and some snow in the far western Plains with beneficial moisture. Dry conditions are in store elsewhere including the drought-affected northern Plains and Northwest.
| Rural Advocate News | Friday April 30, 2021 |
USTR Tai Lays Out More Of The Biden Trade Agenda U.S. Trade Representative (USTR) Katherine Tai faced lawmaker questions Wednesday on trade policy plans by the Biden administration as she testified on the Fiscal Year (FY) 2022 budget plan for USTR. She touted the four-month pause in tariffs between the U.S., UK and European Union (EU) as a significant move and stressed to lawmakers she was committed to ending the dispute that goes back more than 10 years. As for the U.S.-China Phase One agreement, Tai indicated that she was looking forward to kicking off a top-to-bottom review of the agreement and China's compliance. "The picture is more nuanced than you might think, by just looking at the trade data," Tai told lawmakers. A top-level review meeting between the U.S. and China has not yet been scheduled, but Tai said such a session would be scheduled "soon." Tai also pledged to use the enforcement mechanisms in the U.S.-Mexico-Canada Agreement (USMCA), noting she has raised compliance issues with her Mexican counterpart and the U.S. has already launched dispute settlement mechanisms on dairy with Canada. On matters regarding Mexican bans on imports of glyphosate and GMO corn and other ag-trade barriers, Tai said USTR is "looking at it in terms of what our options are to resolve these issues soon." There was not perhaps a lot more information about the Biden trade plans than was known ahead of the meeting and it may be somewhat surprising that it appears USTR has either just started or will start a broad review of the Phase One agreement with China. This appears to underline that trade policy has not been a high focus for the Biden administration.
| Rural Advocate News | Friday April 30, 2021 |
Biden Plan Carves Out Exemption For Ag Land, But Proposes Big Limit On 1031 Exchanges The $1.8-trillion plan unveiled in a joint session of Congress Wednesday evening by President Joe Biden included proposed increases in the capital gains tax rates with an exception included for agricultural land. USDA released an analysis, noting the plan would defer any tax liability on family farms "as long as the farm remains family-owned and operated." USDA also said assets subject to the $1 million-per-person exemption would continue to receive a step-up in basis when sold. Only 2% of farms would owe any tax, and that would be on non-farm assets, USDA detailed. "No capital gains taxes at death for family farms. This plan includes a special protection for family-owned farms and businesses," USDA said. "It defers any tax liability on family farms as long as the farm remains family-owned and operated. No tax is due if the farm stays in the family. No one should have to sell a family farm they inherit to pay taxes and the President's tax reform guarantees that." There would an exclusion on the first $2 million in capital gains for married couples. "This plan also excludes the first $2 million of gains per couple ($2.5 million if the farm also includes the family home) from capital gains tax and heirs continue to get step up in basis on those first $2 million in gains. If an heir decides to sell the family farm, the first $2 million in gains is tax free." In a proposed change that will raise concerns for agriculture, the plan proposes dramatically curtail what are called 1031 exchanges which allow taxpayers to defer gains on real estate if they exchange that for a like property within six months of the sale. The plan would end the 1031 exchanges on real estate profits of more than $500,000.
| Rural Advocate News | Friday April 30, 2021 |
Ag Businesses Report Favorable First Quarter Earnings Earning reports topped headlines on Wall Street this week, and agriculture businesses seem to be doing well. Syngenta reported first-quarter sales of $7.1 billion, up 20 percent for the same period last year. BASF reported first-quarter sales were up 16 percent, to 19.4 billion euros, or $23.52 billion. AGCO reported sales for the first quarter were approximately $2.4 billion, an increase of 23.4 percent. Meanwhile, ADM reported first-quarter earnings of $689 million. The company says its Ag Services and Oilseeds sector achieved a record first quarter, with operating profits 84 percent higher year over year. Tractor Supply Company reported net sales for the first quarter of 2021 increased 42.5 percent to $2.79 billion from $1.96 billion in the first quarter of 2020. Finally, CME Group reports revenue of $1.3 billion for the first quarter of 2021. CME Group Chairman and Chief Executive Officer Terry Duffy says, "Trading volumes in Q1 have returned to pre-pandemic levels.” ************************************************************************************ NCBA Stands Ready to Fight for Sound Tax Policy In his American Families Plan, President Joe Biden targets several provisions of the tax code to raise approximately $1.5 trillion in revenue over the next ten years. The National Cattlemen's Beef Association says those provisions must not burden the nation's farmers and ranchers. Biden's plan would repeal the deferral of gain for real estate, like-kind exchanges for gains greater than $500,000 and eliminate stepped-up basis for gains over $1 million, or $2.5 million per couple. According to the plan, the reform will be designed “with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.” NCBA Senior Executive Director of Government Affairs Danielle Beck says, "When considering how to offset the cost of a comprehensive infrastructure package, it is essential that Congress preserve sound tax policies for family-owned agricultural operations." Beck adds, "We firmly believe that it would be irresponsible to pay for an infrastructure bill on the backs of farmers and ranchers." ************************************************************************************ Mexican Supreme Court Overturns Ban on U.S. Fresh Potato Imports The Mexican Supreme Court ruled by a unanimous vote of five to zero in favor of overturning a 2017 lower court decision that blocked the importation of U.S. fresh potatoes. The ruling, cheered by the National Potato Council and Potatoes USA, marks the end of a decade-long legal process that began when Mexico's potato industry sued its government to prevent competition from imports. National Potato Council vice president of trade affairs, Jared Balcom, says, “This ruling is consistent with Mexico's obligations under the USMCA and the WTO.” Balcom adds the ruling represents a major step forward for the industry. Since it first allowed for the importation of fresh U.S. potatoes in 2003, Mexico has restricted those potatoes to a 26 kilometer-area along the U.S.-Mexico border. That restriction has violated Mexico's obligations under numerous trade agreements. In a statement, Agriculture Secretary Tom Vilsack says, “This decision is important for American agriculture and for positive bilateral relations between the United States and Mexico.” ************************************************************************************ USDA Announces Updates to Livestock Insurance Policies The Department of Agriculture this week announced updates to livestock insurance policies for 2022 and beyond. USDA says the updates are designed to improve options for producers and to create additional opportunities for producers to participate. The changes include ensuring the Class Pricing Option remains available for purchase even when either the Class III or Class IV milk price is not published. USDA is also relaxing records requirements by allowing monthly total pounds of milk and milk components to be acceptable records instead of daily. The Livestock Gross Margin is available for cattle, dairy, and swine producers and provides protection against loss of gross margin, the market value of livestock minus feed costs. The changes include allowing producers to purchase coverage on a weekly basis instead of monthly. Risk Management Agency Acting Administrator Richard Flournoy says, “We strongly feel that these updates will benefit producers and their dairy and livestock operations in the years to come.” ************************************************************************************ USDA to Invest $31 Million for Restoration Work in Gulf States The Department of Agriculture Thursday announced $31 million in funding to advance restoration work and improve water quality in the Gulf Coast states impacted by the Deepwater Horizon oil spill. The funds will support three priority programs and related project work approved by the Gulf Coast Ecosystem Restoration, or RESTORE Council, as part of a multi-year process of collaborative planning and public engagement throughout the Gulf. USDA's Forest Service and Natural Resources Conservation Service, along with state forestry agencies in Alabama, Florida and Mississippi, will leverage the funds to restore forest health, improve coastal ecosystems and provide technical and financial assistance to private landowners. The USDA-funded activities include the Gulf Coast Conservation Reserve Program, the Enhancing Gulf Waters through Forested Watershed Restoration Program, and the Apalachicola Regional Restoration Initiative. The RESTORE Council was established in 2012 by the RESTORE Act, a federal law enacted in response to the Deepwater Horizon oil spill. ************************************************************************************ Texas Ag Commissioner Joins Discrimination Lawsuit over COVID Relief Texas Agriculture Commissioner Sid Miller this week joined a lawsuit against the federal government. Miller claims the COVID relief plan passed in March discriminates against white farmers and ranchers. Miller, a rancher himself, joined the lawsuit as a private citizen, not as a public official. The American Rescue Plan Act of 2021 offers relief to socially disadvantaged farmers and ranchers, which the plan defines as people of color. Miller’s complaint against the Department of Agriculture, according to the Texas Tribune, says the definition in the program fails to include “white ethnic groups that have unquestionably suffered” because of their ethnicity, such as those of Irish, Italian, German, Jewish and eastern European heritage. America First Legal, a conservative group that claims, “the radical left is using its power inside and outside of the government to destroy our country,” filed the lawsuit. The organization says the Constitution forbids government action that discriminates based upon race, alleging the Biden administration is “actively engaging in outright racial discrimination.”
| Rural Advocate News | Friday April 30, 2021 |
Friday Watch List Markets The U.S. Labor Department's employment cost index for the first quarter and a report on U.S. personal incomes for March are both due out at 7:30 a.m. CDT Friday. The University of Michigan's consumer sentiment index of April is set for 9 a.m. CDT. Otherwise, traders will be watching the latest weather forecasts and any news of export sales. Weather Dry conditions will cover most primary crop areas Friday. Precipitation will focus in south Texas through the lower Delta with possible flooding. This pattern is generally favorable for fieldwork and planting; however, extreme wildfire threat covers the drought-affected northern Plains.
| Rural Advocate News | Thursday April 29, 2021 |
Biden Plan to Protect Farms from Elimination of Capital Gains Tax Breaks Ahead of Wednesday night's joint session of Congress address by President Joe Biden, the White House released details of the American Families Plan. The bulk of the $1.8 trillion package focuses on education, direct support to low- and middle-income families and extending tax breaks to families with children. Biden plans to end other tax breaks to pay for the package, including stepped-up basis. However, Biden says, “The reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.” American Farm Bureau Federation Economist Veronica Nigh recently explained, “A long-standing provision of U.S. tax law is that a capital gains tax is not imposed when assets are transferred at death to an heir. Furthermore, tax law allows the heir to increase their basis in the asset to fair market value without paying capital gains tax," which is referred to as a step-up in basis. ************************************************************************************ Farmers Find Barriers to Carbon Markets Farmers are struggling to enter carbon markets. A new report from Reuters says a climate push from the Biden administration is sparking interest in farm-based carbon credits. Companies like Microsoft are purchasing credits and others like Bayer and Cargill have subsidized projects to incentivize farmers to reduce emissions. The Department of Agriculture is monitoring the success of the carbon markets with an eye on future farm bill programs. However, a Nebraska farmer told Reuters, "It's very new; it's still the wild west." Lukas Fricke is generating carbon credits for Microsoft but expects the $20 per credit to not cover the cost of expenses to participate. Much of the cost to companies purchasing credits goes towards verifying carbon-capture claims. Ecosystem Services Market Consortium executive director Debbie Reed says, “Until we get to a market where there is liquidity, we will continue to see projects without buyers, and we will continue to see buyers without the supply they need.” Her organization is investing in satellite and remote sensing technology to help lower verification costs. ************************************************************************************ Dairy Groups Announce Federal Milk Pricing Proposal Four Midwestern dairy groups this week announced a Federal Milk Marketing Orders proposal. The proposal aims to create long-term stability in fluid milk pricing and reducing the likelihood of negative producer price differentials that cut into farmers' revenue last year during the pandemic. The proposal from the Dairy Business Association, Edge Dairy Farmer Cooperative, Minnesota Milk and Nebraska State Dairy Association comes after the groups began studying options early this year. They say the proposal, which they are calling "Class III Plus," aims to build upon the current pricing system, recent proposals by dairy cooperatives, and dairy farmer petitions to define a better Class I pricing system. The Class III Plus proposal would, among other things, tie the Class I fluid skim milk price to the Class III cheese skim milk price plus an adjuster and do away with advanced pricing, a cause of the negative Producer Price Differentials last year. The proposal is also revenue-neutral, therefore more equitable among farmers, processors and customers. ************************************************************************************ Dates Announced for Export Exchange 2022 Export Exchange will return next year, as organizers announced the event this week planned for October 12-14, 2022, in Minneapolis, Minnesota. The dates were announced in a joint statement, including U.S. Grains Council President and CEO Ryan LeGrand, Growth Energy CEO Emily Skor, and Renewable Fuels Association President Geoff Cooper. The statement says, "COVID dictated we cancel Export Exchange in 2020, and sadly, we have officially canceled it once again for 2021," while noting its return in 2022. The groups say Export Exchange allows overseas attendees the opportunity to build relationships with U.S. suppliers of distiller’s dried grains with solubles, or DDGS, corn, sorghum, barley and other commodities, resulting in hundreds of millions of dollars in grain sales. Export Exchange, the biennial event co-sponsored by the Council, RFA and Growth Energy, is expected to bring together 200 international buyers and end-users of coarse grains and co-products, with approximately 300 U.S. suppliers and agribusiness representatives. ************************************************************************************ USDA to Incentivize Purchase of Fruits and Vegetables under WIC Participants in the Department of Agriculture’s Special Supplemental Nutrition Program for Women, Infants, and Children may soon see a temporary increase to their benefits. The increase will apply to the purchase of fruits and vegetables. With $490 million provided by the American Rescue Plan Act of 2021, USDA has offered the option of boosting the cash-value voucher benefit by more than three times the current amount for up to four months to provide additional relief during the pandemic. Agriculture Secretary Tom Vilsack says, “We need to promote nutrition security alongside food security to ensure all people at all times have access to nutritious foods.” The cash-value voucher allows participants to purchase fruits and vegetables as part of their WIC food package. Under normal circumstances, the monthly cash-value voucher is $9 per child and $11 for pregnant, postpartum, and breastfeeding women. The American Rescue Plan allows state agencies to temporarily provide up to $35 per child and adult, per month. ************************************************************************************ Biden to Nominate California Ag Official to USDA President Joe Biden this week announced intent to nominate Jenny Moffit as Agriculture Department undersecretary for marketing and regulatory programs. Moffitt is Undersecretary at the California Department of Food and Agriculture, where she previously served as Deputy Secretary from 2015-18. Before that, Moffitt spent ten years as Managing Director at Dixon Ridge Farms, her family’s organic walnut farm and processing operation. The White House says, “As a farmer and policymaker, Moffitt has engaged with agricultural stakeholders on the critically important balance of sustaining our environment, strengthening our rural economies, and building healthy communities.” Agriculture Secretary Tom Vilsack adds, “Jenny says that growing up and working on the farm solidified the importance of taking care of the land and the people who farm it.” If confirmed, Moffitt will join a mission area that is focused on facilitating the domestic and international marketing of U.S. agricultural products, ensuring the health and care of animals and plants, and setting national and international standards.
| Rural Advocate News | Thursday April 29, 2021 |
Washington Insider: Expanded Family Plan Pushed President Joe Biden unveiled a sweeping $1.8 trillion plan to expand educational opportunities and child care for families, funded in part by the largest tax increases on wealthy Americans in decades, Bloomberg is reporting today. Called the American Families Plan, the president's third major legislative proposal combines $1 trillion in spending with $800 billion in tax cuts and credits for middle- and lower-income families. The plan would make pre-kindergarten and community college free across the country, extend the child tax credit through 2025 and make permanent an expansion of the earned income tax credit to childless adults with low incomes, provide direct support to families for child care, finance teacher training and create a national paid family leave program Bloomberg says. Biden's tax hikes include raising the top rate for individuals back to 39.6%, changing the treatment of capital gains so that wealthy people don't benefit from lower rates on their investment income, eliminating the "carried interest" provision that benefits fund managers, and greatly increasing funding for the Internal Revenue Service to enforce tax collection and audit wealthy taxpayers. His proposals are uncertain in Congress, where Democrats hold a working Senate majority only by virtue of Vice President Kamala Harris's tie-breaking vote. Ahead of Wednesday's speech, Sen. Joe Manchin, D-W.Va., said he expects an “aspirational” presentation that “gives you encouragement” on “how we should all unite and come together.” "It'll be an upbeat speech," Manchin told reporters yesterday. Manchin has publicly said Biden and congressional Democrats need to work with Republicans on a bipartisan infrastructure package rather than immediately trying to forge a partisan path ahead. He said yesterday he's satisfied Biden is doing his best so far. "Sure, they can always do more but he has," Manchin said. "He's reaching out now, and even on this infrastructure bill, you haven't seen him double down and say we've got to pass it all in one big package." Sen. Roger Wicker, R-Miss., also said bipartisan talks on an infrastructure bill are going well. "We continue to be having conversation," Wicker told reporters on Tuesday. "There's a nice back and forth, an exchange of ideas. I think they're interested in our proposal." Over the past 14 months, Congress passed three pandemic-relief packages that injected almost $5 trillion into the economy. The president will today make the case for an additional $1.8 trillion in spending and tax credits on initiatives from education and child care to paid family and medical leave. And that's on top of $2.25 trillion in infrastructure, home health care and other outlays proposed last month. The raft of new spending would be funded by a host of tax hikes directed at corporations and wealthy Americans. It's all aimed at raising productivity, expanding the workforce and spreading the benefits of the U.S. economy more equitably. There is no sign that Republicans will go along with any of Biden's proposal, leaving Speaker Nancy Pelosi, D-Calif., with a narrow majority and hardly any votes to spare. Bloomberg sees this as a potentially tight spot “if her Democratic rank-and-file members don't let up on their demands.” In the Senate, expanding Biden's proposal could jeopardize the ability of Senate Majority Leader Chuck Schumer, D-N.Y., to get it through an evenly divided chamber using special "budget reconciliation" rules. In the meantime, Biden urged Americans hesitant to get vaccinated against COVID-19 to reconsider, citing new federal guidance that inoculated people can begin socializing outdoors without masks. "Gathering with a group of friends in a park, going on a picnic -- as long as you're vaccinated and outdoors, you can do it without a mask," Biden said at the White House yesterday. "If you're vaccinated, you can do more things, more safely." Roughly 141 million Americans have received at least one dose of a vaccine, according to the Bloomberg Vaccine Tracker, but the pace of vaccinations has dropped under 3 million a day despite abundant supply. "For those who haven't gotten their vaccine yet, especially if you're younger or thinking you don't need it, this is another great reason to go get vaccinated now." Biden said. "Today is another day we can take a step back to the normalcy of before," said CDC Director Rochelle Walensky at a news briefing announcing the changes today. She pointed to a "really hopeful decline" of about 21% in the 7-day average for cases. The CDC's new recommendations, which represent one of the most significant relaxations of guidelines since the pandemic began, are complex and wide-ranging. They come with almost 30% of Americans fully inoculated and with increases starting to slow in the daily coronavirus caseload. At the same time, the guidelines send a message that getting vaccinated may offer a clear route to a more normal lifestyle at a time when a large number of Americans remain hesitant. Also President Biden has said he intends to send vaccines from the U.S. to India as that nation battles the worst COVID-19 surge on Earth – but he did not specify timing for a decision or shipments. He said he and Indian Prime Minister Narendra Modi had discussed "when we'll be able to send actual vaccines to India, which is my intention to do." In the meantime, the U.S. is shipping aid including the therapeutic drug remdisivir and machinery for vaccine manufacturing, he said. So, we will see. This week has turned out to be highly political in its focus, and more than a few of the key trends are positive. Nevertheless, many risks remain and producers should watch current developments very closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday April 29, 2021 |
New Trade Deals Continue as Question for Biden Administration Wrapping up trade deals with the UK and Kenya remain open questions for the Biden administration, with a discussion between U.S. Trade Representative (USTR) Katherine Tai and UK Secretary of State for International Trade Liz Truss yielding no update on the pending trade deal. Readouts of the session from the U.S. and UK noted the two discussed "issues of mutual importance," including "industrial subsidies, climate change, and the large civil aircraft dispute," the USTR readout said. But neither side made mention of the pending trade negotiations that were started under the Trump administration. As for Kenya, Secretary of State Antony Blinken on Thursday will meet with Kenyan President Uhuru Kenyatta and Cabinet Secretary for Foreign Affairs Ambassador Raychelle Omamo. A U.S. State Department fact sheet released ahead of the meeting noted that two sides launched bilateral trade negotiations in July 2020. “The two sides are currently reviewing the negotiations before deciding the next steps,” the fact sheet noted. The Biden administration has made clear that negotiating new trade deals is lower on their priority list on trade with more attention likely on enforcement of existing trade deals. It appears that is still the case.
| Rural Advocate News | Thursday April 29, 2021 |
Senate Agriculture Panel Met With USDA's Vilsack Members of the Senate Agriculture Committee met with USDA Secretary Tom Vilsack Tuesday in what was an off-the-record session, according to Sen. Chuck Grassley, R-Iowa. While not sharing what other lawmakers brought up or Vilsack's responses, Grassley told reporters he raised issues on "protecting farmers from corporations." He noted provisions in farm bills that addressed some of those issues and he called on USDA to “complete the work of Congress” on that front. While he slipped and said that Sen. Amy Klobuchar, D-Minn., brought up biofuel assistance that Congress authorized in the December COVID aid plan, Grassley said his intention was to raise the issue as it is "very important" for his home state of Iowa which is "number one" in biofuel production. He noted that former USDA Secretary Sonny Perdue had told Congress he needed more authority to be able to provide financial assistance to biofuel producers which was provided in the COVID aid plan.
| Rural Advocate News | Thursday April 29, 2021 |
Thursday Watch List Markets USDA's weekly export sales report is due out at 7:30 a.m. CDT Thursday. Sales have been lower lately, but in case you haven't noticed, there's not a lot of excess corn or soybeans available. U.S. weekly jobless claims, the first estimate of first-quarter U.S. GDP and an update of the U.S. Drought Monitor are set for the same time. An index of pending home sales for March will be out at 9 a.m., followed by natural gas inventory at 9:30 a.m. CDT. Weather Moderate to heavy rain with some flooding is in store Thursday from the eastern Midwest southwest to southern Texas. Other primary crop areas will be dry. Wildfire threat in the northern Plains is noted for Friday.
| Rural Advocate News | Wednesday April 28, 2021 |
Vilsack: No Land Grab or Beef Diet Limits Ag Secretary Tom Vilsack says there’s no truth to the talk that the Biden Administration wants to take land away from people and discourage consumers from eating beef to help fight climate change. Vilsack says the president wants to protect 30 percent of the nation’s land by 2030 but doesn’t plan to use eminent domain to take possession of that land. The Hagstrom Report says Vilsack told ag journalists that the talk of a land grab is really off base. “There’s no intent to take away land from farmers,” he says. “The goal is to give farmers more opportunities.” Vilsack also talked about rumors that the Biden Administration plans to limit how much beef Americans eat. Vilsack says there is no effort in place to limit the intake of beef coming out of the White House or USDA. “In the political world, games get played, and issues get brought into play,” Vilsack says. The rumor seems to have started thanks to a University of Michigan study on beef. The study says cutting the intake of all animal-based foods by 50 percent and replacing that with equivalent quantities of plant-based food would decrease greenhouse gas emissions by 35 percent. “There’s no policy paper in the administration suggesting that people eat less meat,” he adds. ********************************************************************************************** CME Group Raises Daily Price Limits on Grains After a biannual review, the CME Group is expanding the daily price limits for the Chicago Board of Trade grain and soy futures, and the new limits go into effect on May 2. The new limits include 40 cents for corn, currently at a limit of 25 cents a bushel. Soybean limits are now one dollar per bushel, with the current limit at 70 cents. Soy Meal is up to $30 per short ton, soil oil is now 3.5 cents a pound, and soft and hard red wheat futures are both up to 45 cents per bushel. CME price limits represent the maximum price range permitted for a futures contract in each trading session. Price limits vary by product, as does what happens when a limit gets reached. “Some of the price limits are expanded by 50 percent,” says Jerry Gulke of the Gulke Group. “That’s a lot of volatility.” Gulke also tells Ag Web Dot Com that limit up and down on corn will now be 80 cents. That’s $160 per acre on 200-bushel corn. On 10,000 acres, gross income could move almost $1.5 million per day. Now that the trading limits have widened further, Gulke says it should give volatility a whole new meaning in future months. ********************************************************************************************** Indiana Governor Defends Biofuel Producers and Farmers On Monday night, Indiana Governor Eric Holcomb vetoed Senate Enrolled Act 303, legislation that would have stalled sales of homegrown biofuels in two ways: The first is by mandating confusing labels on E15 fuel dispensers and by muddying key regulations on retailers seeking to offer the lower-cost blend. Growth Energy CEO Emily Skor says her organization is deeply grateful to Governor Holcomb and Lt. Governor Crouch for listening to the concerns of Hoosier biofuel producers and standing up for rural families. “From the very start, SEA 303 got fueled by a wave of misinformation,” Skor says. “Hoosiers already enjoy legal access to lower-carbon, lower-cost E15 at 79 locations, and this veto is an important step toward ensuring greater competition at the pump, lower prices for drivers, and stronger markets for Indiana farmers.” Earlier this month, Growth Energy wrote a letter to Governor Holcomb asking that he veto the legislation, joining a chorus of ag and biofuel leaders in the state in opposition. State groups that worked to get the legislation vetoed included the Indiana Ethanol Producers Association, Indiana Corn Growers Association, the Indiana Ethanol Plant General Managers, and the Indiana Mayors and County Commissioners. ********************************************************************************************** America Grows Act Introduced in the Senate The America Grows Act of 2021 was introduced on Monday in the Senate. It would significantly increase U.S. public investment in agricultural research and development. The bill would increase funding for agricultural research by five percent every year on an inflation-adjusted basis at four USDA agencies over the next decade. Those agencies are the Agricultural Research Service, the Economic Research Service, the National Agricultural Statistics Service, and the National Institute of Food and Agriculture. Backers of the legislation say more support for agricultural research is badly needed. U.S. public funding has declined in real dollars since 2003, while investments in other forms of domestic research have risen dramatically. The U.S. has fallen far behind its major competitors like China and Brazil when it comes to agricultural research funding. However, the America Grows Act would help to reverse the trend and reassert American leadership on the global stage. A recent study in the American Journal of Agricultural Economics says agricultural research has one of the highest returns of any public investment, estimated at $17 for every $1 spent. Maintaining U.S. competitiveness is vital to ensuring abundant, affordable food supplies, as well as supporting the economy. Food and agriculture account for nearly $3 trillion of the U.S. GDP. *********************************************************************************************** Export Inspections of Corn and Soybeans Rise While Wheat Drops Week-to-week exports of corn and beans rose while wheat assessments declined. Corn inspections in the seven days ending on April 22 came in at 1.95 million tons. That’s up from 1.56 million metric tons the previous week and was almost double the 1.08 million tons two weeks ago. Soybean assessments last week totaled almost 224,000 metric tons, up from 222,065 tons the previous week. The USDA says that’s well below the 561,063 tons inspected during the same week a year earlier. Wheat inspections through April 22 totaled just over 564,000 tons, down from almost 626,700 a week before. Last week’s total, however, was up from the 506,700 tons assessed during the same week in 2020. Since the beginning of the marketing year on September 1, the USDA has inspected 41.2 million metric tons of corn for offshore delivery, well above the same period the year before. Soybean inspections since September are at 55.3 million metric tons, ahead of the 33.4 million tons inspected at the same point last year. Wheat assessments since the start of its marketing year on June 1 are at 22.6 million metric tons, just ahead of last year’s 22.5 million tons. *********************************************************************************************** Renewable Fuel Credit Prices Climb to Highest Point Since 2013 The price of renewable fuel credits soared to its highest point on record early this week. Reuters says higher costs for soybean oil pushed up both renewable fuel and biomass-based credits. Renewable fuel credits for 2021 traded at $1.50 each, after trading at $1.44 in the previous session. Biomass-based credits traded at $1.58 each, up from $1.52 during the prior session. Both of those are the highest prices since Reuters began reporting the data for renewable fuel credits in 2013 and biomass-based credits in 2014. Front-month soybean oil, which can be used as a feedstock in biomass-based fuels like biodiesel, traded at 67.71 cents per pound on Tuesday, their highest point since 2008. The credits, known as RINs, rose at the same time the U.S. Supreme Court was hearing oral arguments for a case involving the Renewable Fuel Standard, which requires refiners to blend biofuels into their fuel mix each year or buy RINs from those that do. The Supreme Court’s decision around the case will likely heavily influence the future of the RFS and biofuels.
| Rural Advocate News | Wednesday April 28, 2021 |
Washington Insider: Biden Taxes Collide with Political Reality President Joe Biden is poised to unveil a plan that to raise taxes on the income, investments and estates of the wealthiest Americans to levels not seen in more than four decades--and that that move will trigger "intense debate in Congress about whether and how to address income inequality," Bloomberg reported. Biden's "American Families Plan," itself featuring the biggest expansion of federal support for lower-income and middle-class Americans in decades, will be offset by a series of tax increases on the wealthy, administration officials say. The president will unveil his program during the Wednesday night State of the Union speech to Congress. To pay for a bill that could top $1 trillion, Americans earning over $400,000 will face higher marginal income tax rates. Those taking in $1 million or more will get hit with a levy of up to 43.4% on their capital gains. The last time rates got close to that, Jimmy Carter was president. Biden is also likely to propose increases in the number of Americans subjected to the estate tax. He campaigned on closing popular tax breaks including a provision that lets appreciated assets go untaxed when they are inherited, along with eliminating the carried-interest tax breaks – which let private equity managers cut their Internal Revenue Service bills. Republicans are likely to oppose the tax increases en masse, but the White House is also risking a struggle with Democratic lawmakers. Some of those from New York, New Jersey and other high-tax states in particular were already mobilizing to demand relief for their constituencies even before Biden's official announcements. With the 50-50 Senate and a narrow margin in the House, long negotiations loom. In the meantime, Republicans may be ready to back as much as $900 billion in infrastructure spending, according to a senior senator, Bloomberg says – though that would still cover less than half of Biden's proposal. "There's a deal to be done on infrastructure," Sen. Lindsey Graham, R-S.C., said on Sunday. Graham suggested "to not pay for some of the infrastructure spending immediately because I think it over time pays for itself." There are other interesting proposals afoot--for example, President Biden is betting $100 billion he can deliver a lifeline to rural America, and a boost to the economy overall, by making high-speed internet available to all Americans. The plan could help millions, especially in agrarian states where the Democratic party's support is weakest. Estimating the precise impact, however, is seen as virtually impossible because no one truly knows how many Americans lack access to the internet. In the meantime, there are other fights aplenty, Bloomberg thinks. One focuses on judges. However, the administration's aggressive timeline for vetting potential judges while seeking nominees who would bring experiential, racial, and gender diversity to the federal bench is proving difficult for several Democratic senators to meet, Bloomberg says, The report notes that the once-a-decade battle to redraw the U.S. political map promises to be one of the most contentious ever when it kicks off this week, shadowed by the coronavirus pandemic and hindered by partisan divisions stoked during the Trump's presidency. The process has begun with the release from last year's constitutionally mandated count of every person living in the U.S., which happens every 10 years – numbers that are already emerging and are determining which states gain seats in the U.S. House of Representatives and which ones lose. Meanwhile, an Arizona judge demanded more information about an audit of Maricopa County's 2020 general election results by a group called the Cyber Ninjas after the state's Democratic Party argued it was being conducted by "unqualified and completely unhinged actors." Superior Court Judge Christopher Coury in Phoenix ordered the auditors to release documents explaining their internal procedures. Also, seven decades after the U.S. Supreme Court said the NAACP didn't have to give Alabama its membership list, so prominent liberal groups are in the unlikely position of supporting two conservative charities in a challenge to California's requirement that they disclose their top donors. In a Supreme Court argument set for this week, the Americans for Prosperity Foundation and the Thomas More Law Center will contend that California can't be trusted to keep the information private – and that it's opening up the groups' supporters to threats and harassment, much like Alabama once did to the NAACP. After three months of vaccination across the U.S., a majority of American adults have gotten shots – and the effort will soon shift from mass inoculation to "mop-up," Bloomberg says. Over the next few weeks, what the vaccine campaign looks like is going to change dramatically. Finally, President Biden is exploring the idea of a border adjustment tax that would slap a levy on imports from nations with weaker climate policies, according to John Kerry, the administration's special climate envoy. "President Biden, I know, is particularly interested in evaluating the border adjustment mechanism," Kerry said on Bloomberg TV. "He wants to look at that and see whether that's something that we need to deploy." So, we will see. Clearly there are controversies to go around and a razor-thin and infinitely toxic climate over it all. A key will be whether the administration's rapid recovery hopes turn out to be true. Certainly, these are developments producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday April 28, 2021 |
Census Population Shifts Will Bring More Changes In Congress US population growth was at its slowest level since the 1930s over the past decade, according to updated Census data released Monday. The changes in population will also shift political maps, with the long-running trend of the South and West gaining population -- and congressional representation -- at the expense of the Northeast and the Midwest, is still intact. Texas has gained two more votes in Congress and the Electoral College for the next decade, while Colorado, Florida, Montana, North Carolina and Oregon each gained one seat, based on the first set of results from the 2020 Census released Monday. The seven states losing one vote each: California, Illinois, Michigan, New York, Ohio, Pennsylvania and West Virginia. Census will release data later this year that will outline growth in population centers that will assist states in redrawing congressional maps.
| Rural Advocate News | Wednesday April 28, 2021 |
CFAP 2 Payouts Climb To $13.5 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) have reached $13.50 billion as of April 25, up from $13.45 billion the prior week. Acreage-based payments now total $6.23 billion, livestock payments are at $3.43 billion, sales commodities total $2.57 billion, dairy is at $1.21 billion, and eggs/broilers payouts are at $57.29 million. CFAP 1 payments are now at $10.56 billion, up from $10.55 billion the prior week. As for the CFAP Additional Assistance program, no payout information has yet been made available from USDA even as the Farm Service Agency said that actions under CFAP include processing of CFAP AA payments. "USDA will finalize routine decisions and minor formula adjustments on applications and begin processing payments for certain applications filed for this program," according to FSA.
| Rural Advocate News | Wednesday April 28, 2021 |
Wednesday Watch List Markets The latest weather forecasts and any news of an export sale continue to get quick attention from traders. The Energy Department's weekly inventory is due out at 9:30 a.m. CDT, including an update of last week's ethanol production. At 1 p.m. CDT, the Federal Reserve will conclude its two-day meeting and is expected to keep interest rates near zero. Weather Rain is in store across much of the central U.S. Wednesday, including a threat of flash flooding in the southeastern Plains and southern Midwest. Severe storm potential is also high in the far southern Plains and portions of the eastern Midwest. The rain will delay planting but offers favorable crop moisture. Drought areas of the northern Plains, Northwest and Canadian Prairies will be bypassed by this rain event.
| Rural Advocate News | Tuesday April 27, 2021 |
Biofuels Coalition Readies for Oral Arguments in Supreme Court In oral arguments scheduled for Tuesday morning, four agriculture and biofuel organizations will argue that the U.S. Supreme Court should affirm a unanimous 2020 decision from the U.S. Court of Appeals for the Tenth Circuit. The Tenth Circuit decision held that only small refineries that have remained continuously exempt from obligations under the Renewable Fuel Standard are eligible for future extensions of the compliance exemption. The four organizations comprising the Biofuels Coalition—the Renewable Fuels Association, the National Corn Growers Association, National Farmers Union, and the American Coalition for Ethanol—will share time during Tuesday’s oral arguments with the U.S. Department of Justice, which will be representing the U.S. Environmental Protection Agency. EPA announced in February that it supports the Tenth Circuit’s decision. The coalition claims that the EPA had exceeded its authority in creating new exemptions, stating, “The Tenth Circuit Court’s ruling is consistent with the Clean Air Act, congressional intent, and the purpose of the RFS.” ************************************************************************************ U.S. Department of Agriculture Announces Key Staff Appointments The Department of Agriculture last week announced the names of individuals who will hold senior positions in Washington, D.C. Karama Neal was named Administrator for the Rural Business-Cooperative Service. Most recently, Neal served as president of Southern Bancorp Community Partners. Mike Schmidt was named senior advisor in the Office of the Secretary. Previously, Schmidt served as senior advisor for USDA’s Farm Production and Conservation Mission Area since January 20, 2021. Lisa Ramirez was named Director of the Office of Partnerships and Public Engagement. She most recently served as the Chief Innovative Officer for the Lubbock Independent School District in Lubbock, Texas. Finally, Doug McKalip was named senior advisor in the Office of the Secretary. Most recently, McKalip was a senior advisor for the Animal and Plant Health Inspection Service. Agriculture Secretary Tom Vilsack says they will “play an integral role in our mission to create a department that represents and serves all Americans, addresses the climate crisis, builds new and fair markets for American producers, and rebuilds rural America.” ************************************************************************************ Dairy Farmers to Seek Emergency USDA Hearing on Class I Mover Reform The National Milk Producers Federation’s Board of Directors voted last week to request an emergency USDA hearing on a Federal Milk Marketing Order proposal. The proposal, NMPF says, would restore fairness for farmers in the Class I fluid milk price mover. The endorsement of the board, which represents dairy farmers and cooperatives nationwide, follows approval from the organization’s Executive Committee. The NMPF plan would ensure that farmers recover lost revenue and establish more equitable distribution of risk among dairy farmers and processors. The current mover was adopted in the 2018 farm bill and intended to be revenue neutral while facilitating increased price risk management by fluid milk bottlers. But the new Class I mover contributed to disorderly marketing conditions last year during the height of the pandemic and cost dairy farmers over $725 million in lost income. NMPF’s proposal would help recoup the lost revenue and ensure that neither farmers nor processors are disproportionately harmed by future significant price disruptions. ************************************************************************************ Beef. It’s What’s For Dinner. Brand Launches Sustainability Campaign The Beef. It’s What’s for Dinner. brand, managed by National Cattlemen’s Beef Association, launched a new beef campaign highlighting real beef farmers and ranchers. Consumers will be invited to learn more about how cattle farmers and ranchers around the country are employing sustainable practices to care for the land and produce high-quality beef. Recent scientific research funded by the Beef Checkoff shows that due to decades of continuous improvement efforts on farms and ranches around the country, the U.S. is the leader in sustainable beef production. According to the Environmental Protection Agency, greenhouse gas from beef cattle only represents two percent of emissions in the United States. Additionally, 90 percent of what cattle eat is forage and plant leftovers that people can’t eat. The campaign will come to life in various ways, including new advertising, an interactive map on BeefItsWhatsForDinner.com, a series of interviews showcasing sustainability from farm to table on local TV and radio stations, influencer partnerships and content partnerships. ************************************************************************************ USDA to Provide Critical Nutrition Assistance to 30M+ Kids Over the Summer The Department of Agriculture Monday announced a new effort funded by the American Rescue Plan to provide adequate nutrition to more than 30 million children over the summer. The effort expands the Pandemic Electronic Benefit Transfer, or P-EBT benefits. USDA says summer months are difficult for low-income children because they lack access to school meals that fill a nutrition gap during the school year. This summer, USDA will offer P-EBT benefits to low-income children of all ages. Agriculture Secretary Tom Vilsack says, “The expansion of P-EBT benefits over the summer is a first-of-its-kind, game-changing intervention to reduce child hunger in the United States.” P-EBT was established in March 2020 to provide food dollars to families to make up for meals missed when schools have closed due to COVID-19. The program was set to expire on September 30, 2021, but through the American Rescue Plan Act, benefits are now available for the duration of the pandemic, including during the summer months. ************************************************************************************ Fuel Prices Reach 2019 Seasonal Price Level The nation’s average price of gasoline is again on the rise, posting a slight 0.4 cent per gallon rise from a week ago to $2.87 per gallon, according to GasBuddy. The national average now stands 2.0 cents higher than a month ago and $1.13 per gallon higher than a year ago. The national average price of diesel has fallen 0.3 cents in the last week and stands at $3.07 per gallon. Nationally, gas prices now match the average prices seen on the same dates in 2019. GasBuddy’s Patrick De Haan says, “perhaps we may see additional upside as most states in the nation have finished the transition to EPA-mandated summer gasoline.” While gasoline demand did dip last week for the third straight, it was yet another small decline, and as temperatures continue to warm ahead of summer. The Energy Information Administration last week reported a key headline- implied gasoline demand rose over 9 million barrels for the first time since last August- a metric that has weakened over the last few weeks.
| Rural Advocate News | Tuesday April 27, 2021 |
Washington Insider: Worried About Dollar Outlook Bloomberg is reporting this week that the most popular currency trade at the beginning of the year has splintered now as Wall Street takes to opposing sides on the outlook for the fate of the dollar in the world's pandemic recovery. JPMorgan Asset Management and T. Rowe Price see the dollar weakening as U.S. economic exceptionalism wanes, while PineBridge Investments expects it to strengthen. Currencies from the euro to the Brazilian real – which suffered in the first quarter – have attempted rallies this month leaving the greenback sitting at a closely-watched technical crossroads. "You have that idiosyncratic U.S. rates outperformance story being offset by the global cyclical upswing and by expensive valuations on the dollar," said Ian Samson, a multi-asset fund manager at Fidelity International in Hong Kong, who is long the currency against the euro. "We see significant crosswinds blowing the dollar in different directions." While most on Wall Street called for a weaker dollar in January, the world's reserve currency went on a run that left speculative funds scrambling to cover some $30 billion of net short positions as Treasury yields climbed and expectations of rate hikes were brought forward. That trade soured this month, with the Bloomberg Dollar Spot Index slipping 2.3%. A break of the uptrend in place from its first quarter would point the way to further downside. This week's policy assessment by the Federal Reserve, which has held firm against hawkish expectations, could lend weight to bears. At the crux of dollar forecasts is expectations for the pace of recovery in the world's biggest economy. Credit Suisse Strategist Tantia discusses the outlook for Asian markets and why his firm changed their negative view on the U.S. dollar to neutral. As the world strives to break free from the bruising economic effect of coronavirus restrictions, the U.S. has inoculated more citizens than any other country, giving it an edge in the race to re-open. Coupled with the Biden administration's multi-trillion-dollar fiscal stimulus and a Fed that's allowing inflation to overshoot, it's spurring the likes of PineBridge Investments to predict more dollar gains. "U.S. Treasury yields could see another leg higher once we see some inflation come back," with their premium over peers supporting the dollar, said Omar Slim, portfolio manager at PineBridge in Singapore. "Our view is that the dollar will retain a strengthening bias this year." Ten-year U.S. yields surged more than 80 basis points this year to 1.77% in March, the highest since before the pandemic. While the benchmark stood at 1.58% Monday, it remains well above this year's low of around 0.90%. "Positive U.S. data might very easily kick-start a dollar rally again," wrote Commerzbank AG currency strategist Thu Lan Nguyen in a note last week. "So for now U.S. dollar bears should make sure that they don't get excited too soon." But not everyone is convinced the U.S. will continue outpacing peers. For JPMorgan Asset's Thushka Maharaj, its exceptionalism is set to fade as other nations catch-up on vaccine roll-outs and economic re-openings in the second half of the year. The London-based strategist is keeping tabs on developed markets like Europe, the U.K. and Japan, and sees the euro outperforming the dollar in the medium term. “We are expecting the rebound in these economies to mirror what we are seeing in the U.S. right now,” she said. Signs abound this trend is underway. Coronaviruses cases are rising in all regions except Europe, the World Health Organization said on Tuesday. The European Union is unleashing a new immunization drive to cover the bulk of its population within a few months, while on the economic front, recent PMI data have beaten expectations. The euro has climbed about 3% from a four-month low in March and broke through the key $1.20 level last week. However, some favor other currencies to best the greenback. T. Rowe's Thomas Poullaouec sees more gains for Australia's risk-sensitive dollar as China's economy rebounds from the pandemic and demand for commodities rise. Aberdeen Standard Investments' Edwin Gutierrez is watching for opportunities to boost exposure to riskier developing currencies as "the rest of the world catches up on the vaccine roll-out." In the meantime, vocal bears continue to warn about long-term headwinds for the dollar. "Beyond the near term, we continue to see a structurally negative outlook for the U.S. currency," wrote Goldman Sachs Group Inc. strategists including Zach Pandl in a note Tuesday. "The dollar is still substantially overvalued."
| Rural Advocate News | Tuesday April 27, 2021 |
Rise in Cost of Eating Out Now Seen Higher for 2021 The cost of eating out will be a little higher than previously forecast by USDA for 2021, but forecasts for overall food price inflation and grocery store prices were kept at prior marks by USDA's Economic Research Service (ERS). Food away from home (restaurant) prices are now expected to increase from 2.5% to 3.5% in 2021 compared with 2020, ERS said, up from 2% to 3% forecast as the increase in March. The higher forecast was "driven by increases in prices for food from 'limited service' vendors (locations where customers pay at the register before eating)," ERS said. Food prices overall so far in 2021 have shown increases compared with 2020, with restaurant prices up 3.7% in March from year ago while food at home (grocery store) prices are up 3.3% from year ago. So far in 2021, food at home prices are up 1% and food away from prices are up 2.3%, while the CPI for all food is up 1.6%.
| Rural Advocate News | Tuesday April 27, 2021 |
New WTO Chief Cautions China Cannot be Made to Feel Targeted Chinese cooperation on trade reforms is most likely to come if it is not made to feel targeted by other countries, according to Ngozi Okonjo-Iweala, the director-general of the World Trade Organization. Several countries have been pushing for reforms on industrial subsidies and state-owned enterprises used by China, with those countries saying the policies distort global trade. "We also have to show China is not being targeted... When China feels it is being targeted, and it's only about China, you get a lot of resistance," Okonjo-Iweala told a European Commission conference. "The dealings I have had with China have been very constructive and I think that if we put the facts on the table about the negative spillovers from such industrial subsidies and share them with China ... they will be willing to look at that." The WTO is working with the World Bank, International Monetary Fund and the Organization for Economic Co-Operation and Development (OCED) to "put some objective facts on the table," the WTO chief remarked. This comes as the U.S. has continued to seek to build support with allies to take on China's actions on trade and economic policies.
| Rural Advocate News | Tuesday April 27, 2021 |
Tuesday Watch List Markets Tuesday has an index of U.S. consumer confidence set for 9 a.m. CDT, but no other official reports. Traders will keep a close eye on the latest weather forecasts and watch for any export sales news. Weather Tuesday will be very warm, humid and windy over the central and southern U.S. Precipitation will focus on the Northern Plains and northern Midwest with scattered light showers. This combination will favor additional row crop planting progress. Strong thunderstorms with locally heavy rain and potential severe intensity are in store from the southeastern Plains through the southern and eastern Midwest Tuesday evening and Wednesday.
| Rural Advocate News | Monday April 26, 2021 |
Biden Pledges 50 Percent Cut in U.S. Emissions By 2030 During a virtual Earth Day summit with other world leaders, President Joe Biden pledged to cut U.S. greenhouse gas emissions in half by 2030. A DTN article says biofuel groups are relieved after the president’s plan talked about very low carbon, new generation renewable fuels to help achieve rapid emission reductions in both the auto fleet and aviation. Biofuel groups had expressed concern that the president’s infrastructure plan relied too heavily on electric vehicles. Ag Secretary Tom Vilsack says the reality is the country will be using combustion engines for some time into the future. “We know that biofuels have a better greenhouse gas impact or footprint than petroleum-based fuels,” Vilsack says. “To the extent that we can increase our biofuel blends, that’s going to take us closer to our reduction goals.” Renewable Fuels Association CEO Geoff Cooper says biofuels have already made a significant impact on carbon reduction, lowering emissions by almost one billion tons since 2008. Brian Jennings, CEO of the American Coalition for Ethanol, says the initiative could potentially expand biofuel markets around the globe for American producers. “Other countries have initiated national ethanol policies as a part of their initiatives to decarbonize transportation fuels, and American biofuel producers are ready to play a much bigger role in meeting the targets domestically and around the world,” Jennings says. ********************************************************************************************** Biden’s 30X30 Proposal Causing Concern Among U.S. Agriculture The American Farm Bureau Federation is one of many ag groups calling on the Biden Administration to act responsibly when it comes to conservation. Biden’s goal to conserve at least 30 percent of U.S. land and water by 2030, commonly known as “30X30,” is raising many questions. A letter to the administration makes three key requests: that the administration provides clarity on the initiative; that the effort recognizes voluntary conservation efforts already underway; and that the administration seeks input from farmers and ranchers. “This ‘30X30’ goal has received a great deal of attention in farming and ranching communities across the country,” writes American Farm Bureau President Zippy Duvall. “America’s agriculturalists are asking whether their good work will be recognized by the administration.” The letter points out that farmers and ranchers have voluntarily enrolled more than 140 million acres of private land into federal and non-federal conservation programs. That’s a landmass larger than the size of New York and California combined. “We ask that you move swiftly to provide clarification about your intentions, and when you do, make sure to invite public comments because farmers and ranchers are leaders in conservation and deserve to get heard,” Duvall adds. ********************************************************************************************** Soy-Based Innovation Clears Air and Helps Respiration A new soy-based dust suppressant is now available for roads, construction sites, farms, and many more uses. It offers a sustainable choice for rural, urban, and business communities to improve air quality for people, pets, livestock, and crops. As part of the marketing effort, a new video shows how this innovation can help reduce dust on rural gravel roads near farms across the nation. BioBlend Renewable Resources EPIC EL dust suppressant is the latest industrial use product to enter the market after getting research funding from the United Soybean Board and the North Dakota Soybean Council. EPIC EL is made from soybean oil as well as glycerin, a coproduct of biodiesel production. “The soybean checkoff is driving demand for U.S. soy through innovative and sustainable industrial use products,” says Dan Farney, USB Chair and a soybean farmer from Illinois. “A long-lasting soy-based dust suppressant is a natural choice for farmers, county engineers, and government agencies, as well as businesses in rural and urban areas, to improve air quality, traffic safety, and sustainability.” Because EPIC EL is an odorless water-soluble product, it offers environmental benefits compared to the salt-based mixtures commonly used to control dust that trigger concerns about soil leaching and equipment corrosion. ********************************************************************************************** Cargill Building New Canola Plant in Canada as Demand Soars Cargill is building a new $350 million canola plant in Saskatchewan, Canada, to take advantage of the booming demand for the oilseed. Canola futures recently hit record highs, and soybeans reached multi-year highs as demand for canola to process into vegetable oil and animal feed is greater than the available supply. Refiners are also planning to produce renewable diesel from canola and soybeans to comply with Canadian government mandates and several U.S. states to manufacture cleaner-burning fuels. “There’s going to continue to be a strong pull in countries like China, from a food perspective,” says Jeff Vassart, president of Cargill’s Canadian unit. “We do see demand increasing for renewable diesel too, and we’re going to make sure we get positioned for it.” The new plant in Regina, Saskatchewan, will have the capacity to crush one million tons of canola every year. Reuters says the plant is expected to start working in early 2024 and will create 50 full-time jobs. Cargill will also be modernizing its two canola crush facilities in Alberta and Saskatchewan to increase volume. Canada’s canola stocks will drop to their lowest point in eight years sometime later this summer, but Cargill still plans to crush at a strong pace. *********************************************************************************************** Corn Export Sales Rise While Beans and Wheat Drop The USDA says export sales of soybeans and wheat dropped week-to-week while corn sales rose. Soybean sales in the seven days ending on April 15 were reported at only 64,300 metric tons, down 29 percent from the previous week but up 25 percent from the prior four-week average. Japan was the big buyer at 58,200 metric tons. China kept the total from going higher by canceling cargoes of 51,200 tons while an unnamed country canceled 37,200 tons. Sales for the 2021-2022 marketing year totaled 315,300 metric tons. Exports for the week dropped to a marketing-year low of 226,400 metric tons, a 45 percent drop week-to-week. Wheat sales also dropped, falling to 240,200 metric tons, still up 55 percent from the prior four-week average. Mexico was the top buyer at 137,500 metric tons. Sales for the 2021-2022 marketing year came in at 373,800 metric tons. Exports in the seven days through April 15 tallied 561,000 metric tons, 20 percent higher than the previous week. Corn sales rose to 387,500 metric tons, 18 percent higher than the previous week. However, that’s down 75 percent from the previous four-week average. Mexico was the top corn buyer at 366,300 metric tons. Weekly exports totaled 1.61 million metric tons, which was 12 percent lower than the prior week. *********************************************************************************************** Farm Progress Returning to Live Events in 2021 Farm Progress will return to hosting live events with the Farm Progress Show in Decatur, Illinois, August 31-September 2, and Husker Harvest Days in Grand Island, Nebraska, September 14-16. A survey done by Readex Research indicated that 84 percent of past show attendees will go to the show in person or plan to attend if their schedule allows it. The industry hasn’t come together in person since early 2020, so groundbreaking product introductions and technological advances haven’t been seen in over 18 months. Farm Progress says its entire team is working to ensure that the agriculture community can reconnect in meaningful and safe ways when they return to these yearly events. The All-Secure Guidelines, a transparent and vetted industry-wide collection of health and safety policies, will provide direction during the upcoming shows and make sure that all attendees and exhibitors will be safe and healthy. Central Illinois farmer Chase Brown tells Farm Progress that “It’s exciting to get out to see and touch the newest equipment, but also to interact with not only exhibitors but fellow farmers.”
| Rural Advocate News | Monday April 26, 2021 |
Washington Insider: Fight Over Taxes Increases The Hill is reporting this week that lawmakers are digging in for a "bitter fight over tax increases" that President Joe Biden is expected to propose in the coming days – which he says are necessary to pay for expensive infrastructure and family support bills. The expected proposals, which largely hew to his campaign promises, would raise the corporate tax rate from 21% to 28%, implement a minimum corporate tax, nearly double taxes on investment gains for the wealthiest and tweak inheritance laws. The announced corporate tax plans would cover a $2.3 trillion infrastructure plan dealing with transport, broadband, water and electricity. Capital gains and other proposals are being finalized ahead of next week's rollout of a so-called family infrastructure plan focusing on early education and home care that could run as high as $1.5 trillion. Republicans, whose signature achievement under the Trump administration was a 2017 tax bill that cut taxes significantly are continuing to excoriate the proposals. "This is another economic blunder by the Biden Administration," said Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee, which deals with taxation. This time, President Biden is also confronting blowback from progressives such as Sen. Bernie Sanders, I-Vt., who are pushing for the corporate tax rate to return to its 2017 level of 35%. "We need a progressive tax system based on the ability to pay, not a regressive tax system that rewards the wealthy and the well connected," Sanders said in late March. Progressives want Biden to use the extra cash to pay for expanded health coverage. Republicans are also torn between sacrificing their most recent crowning legislative achievement and proving that they are not obstructionists to popular proposals from a popular president. A recent survey conducted by The New York Times and Survey Monkey found that two out of three American voters support Biden's American Jobs Plan, The Hill said. The White House has portrayed itself as open to negotiations on pay-fors, though Republicans remain skeptical after the president dismissed their COVID-19 offers and passed his last $1.9 trillion plan with only Democratic support. "It's the beginning of a discussion," White House press secretary Jen Psaki said Thursday, adding that Biden's red line was his campaign promise to not raise taxes for people making under $400,000 a year. Moderate Democratic Sen. Joe Manchin of West Virginia has said he prefers a negotiated bipartisan solution, but has drawn a line in the sand, arguing that corporate tax increase should not go beyond 25%. Republicans presented their $568 billion infrastructure counter-offer Thursday and ruled out any corporate tax increases arguing that the bill should be funded through user fees and already-appropriated funds from the last COVID-19 relief measure. Sen. Shelly Moore Capito, R-W.Va, who led the effort for the GOP response, said that increasing corporate rates was out of the question. "I think that's a non-negotiable red line," she said. "For me personally, that's a non-starter." But Republicans face an uphill battle with that approach, The Hill says. "It definitely should be raised, because the break that they got from the Republicans was totally untoward and these corporations should be paying their fair share of taxes," Sen. Mazie Hirono D-Hawaii, said. Senate Finance Committee Chairman Ron Wyden, D-Ore., said Democrats couldn't accept Capito's red line. "Their idea is that the biggest of the big corporations should not pay one penny in taxes," he said Thursday. "It's pretty hard to get to a bipartisan approach from that. You know, I always try to find common ground, but that's gonna be a stretch." Republicans backing Capito's counterproposal agreed with Biden on one thing: They don't want to raise the gas tax, despite a push by big business groups hoping to stave off a corporate tax hike. Complicating things further, a group of House Democrats have insisted that they will vote down any proposal that doesn't roll back limits on the state and local tax deduction, known as SALT. The GOP tax law limited the deduction to $10,000, a move that largely affected the wealthy in blue states such as California and New York. But eliminating the deduction would raise the price of legislation by $130 billion, half of which would accrue to millionaires. Progressive Reps. Alexandria Ocasio-Cortez, D-N.Y., and Kathleen Rice, D-N.Y., were the only New York Democrats not to sign onto the SALT letter. Market watchers believe that ultimately Democrats will moderate their asks in order to secure support for passing their bills, whether that requires simply satisfying moderates such as Manchin for a budget reconciliation bill, or persuading 10 Republican Senators to join them in passing legislation through regular order. A Thursday analysis from Goldman Sachs predicted that Biden's plans to raise capital gains from 20% to 39.6% on high earners would likely end up closer to 28%. "While it is possible that Congress might pass the proposal in its entirety, we think a moderated version is more likely in light of the razor-thin majorities in the House and Senate," analyst Jan Hatzius noted. So, we will see. The tax plan will be a hard ask for both parties, and certainly is one producers should watch closely as they proceed this summer, Washington Insider believes.
| Rural Advocate News | Monday April 26, 2021 |
Former USDA Secretary Perdue Being Considered As Leader Of University Of Georgia Atlanta TV station Fox 5 is reporting that the University System of Georgia is considering former USDA Secretary Sonny Perdue to become the next chancellor. The station reported that a group of students is planning to protest the consideration of Perdue to lead the university system in the state. "Students Against Sonny" has published a petition on Change.org and plans to hold a protest this week in front of the Board of Regents building in Atlanta.
| Rural Advocate News | Monday April 26, 2021 |
USDA's Vilsack: Administration 30x30 Plan Not a 'Land Grab' The Biden administration's 30x30 plan to protect 30% of U.S. lands and ocean territory by 2030 not a "land grab," according to USDA Secretary Tom Vilsack. The secretary told reporters, "This is not about land grabs, this is really about utilizing public lands and private working lands in a commitment to conservation." He said the department is reaching out to farmers for their suggestions about how to achieve the "30x30" and other goals, but that "there's no intention to take something away from folks," rather the moves are focused on encouraging adoption of climate-smart practices. He also said the action to increase acreage levels enrolled in the Conservation Reserve Program (CRP) will not increase market prices for commodities. But the National Grain and Feed Association (NGFA) cautioned that "drastically" increasing CRP could result in negative climate impacts. Mike Seyfert, president and CEO of the NGFA, said, "NGFA believes CRP should be targeted at the most environmentally sensitive portions of farms, and avoid enrollment of whole farms or large tracts of productive farmland. Programs that drastically increase acreage idling in the United States send market signals to competitors to plant more acres, resulting in negative climate and environmental impacts. We look forward to hearing additional details from USDA and working with the department to ensure this acreage is targeted for the most substantial environmental benefits while preserving U.S. agricultural productivity and competitiveness."
| Rural Advocate News | Monday April 26, 2021 |
Monday Watch List Markets Traders will start a new week examining the latest weather forecasts, watching for a report on March durable goods orders at 7:30 a.m. CDT and will pause at 8 a.m. to see if USDA has an export sale announcement. At 10:00 a.m. CDT, USDA will have its weekly report of grain export inspections, followed by Crop Progress at 3 p.m. CDT. Weather Monday features very warm to hot and dry conditions over much of the central and southern U.S. This combination favors spring planting along with bringing stress to winter wheat. Red Flag wildfire warnings cover much of the Southern Plains. We'll also see widely scattered light showers in the Northern Plains with little to no easing of drought.
| Rural Advocate News | Friday April 23, 2021 |
Senate Ag Committee Advances Growing Climate Solutions Act The Senate Agriculture Committee quickly advanced the Growing Climate Solutions Act Thursday morning. Via a voice vote, the committee approved the legislation, sending it on to the full Senate for consideration. Committee Chair Debbie Stabenow states, “On Earth Day, our committee came together in a bipartisan way to pass the Growing Climate Solutions Act.” Ranking member John Boozman says the bill "demonstrates what can be accomplished if we take a bipartisan approach to legislating." The bill creates a structure at the U.S. Department of Agriculture to help farmers and foresters scale-up climate-oriented practices and benefit from emerging new sources of farm revenue. The bill was reintroduced on Tuesday with the support of 42 Senators and over 70 agricultural and environmental organizations. Agriculture groups are supportive of the legislation. Growth Energy CEO Emily Skor says, "The Growing Climate Solutions Act rightly rewards farmers for climate-smart practices and provides important guidelines for success.” ************************************************************************************ NACD Announces Climate Action Task Force The National Association of Conservation Districts Thursday announced the formation of a Climate Action Task Force. The Task Force will assess current and emerging climate policy opportunities and make recommendations to NACD’s leadership. The goal is to utilize the technical knowledge and expertise of conservation districts as part of the U.S. solution to climate change. NACD President Michael Crowder says, “It’s important to keep locally-led conservation at the forefront of U.S. climate mitigation efforts to set strong direction that also serves the needs of local communities.” President Crowder selected NACD Immediate Past President Tim Palmer to lead the task force. Palmer says, “The task force members have a keen knowledge – from different perspectives – of how utilizing continuously refined and emerging practices can help our soils and ecosystems produce climate benefits.” NACD says conservation practices that are trusted and familiar to landowners can play a critical role in climate change mitigation and healthy farm, ranch, tribal and forestry economies. ************************************************************************************ NMPF Supports Labeling Integrity Through DAIRY PRIDE Act The National Milk Producers Federation commended lawmakers for reintroducing the DAIRY PRIDE Act. The legislation, NMPF says, would bring clear, accurate labeling information for consumers and end harmful mislabeling of dairy foods for plant-based products. The legislation requires the U.S. Food and Drug Administration to enforce its own existing standards of identity on imitation dairy products after decades of inaction. Senators Tammy Baldwin, a Wisconsin Democrat, and James Risch, an Idaho Republican, introduced a Senate version of the bill, and a companion bill was introduced in the House. NMPF President and CEO Jim Mulhern states, “FDA is responsible for the integrity and safety of our nation’s food, medicine, and medical devices, and it’s crucial that it enforce its own standards and requirements.” Standards of identity legally define what constitutes a specific food or food product, requiring the food product to carry certain qualities. When enforced, these legal standards protect consumers by helping to ensure the integrity of their food. ************************************************************************************ White House Launches Drought Relief Working Group The White House this week announced the formation of an Interagency Working Group to address worsening drought conditions in the West and ongoing water shortages. The Working Group will be co-chaired by the Departments of the Interior and Agriculture. Agriculture Secretary Tom Vilsack states, "With our interagency Working Group, we will collaborate with Tribes, agricultural producers, landowners, and rural communities to build regional resilience to drought." Interior Secretary Deb Haaland says, “We are committed to using every resource available” to accomplish their goal. The Working Group will work to identify immediate financial and technical assistance for impacted irrigators and Tribes. Development of longer-term measures to respond to climate change and build more resilient communities and protect the natural environment will also be a priority, including through President Biden’s proposed American Jobs Plan and through a recommitment to strengthening the National Drought Resilience Partnership. Formed in 2013, the NDRP brings together federal agencies to build long-term drought resilience. ************************************************************************************ USDA Invests $487 Million in Rural Water, Energy, and Biofuel Infrastructure The Department of Agriculture celebrated Earth Day Thursday by announcing a $487 million infrastructure investment to help communities in 45 states. USDA says the funding will help communities build back better and stronger while prioritizing climate-smart solutions and environmental stewardship. USDA is making the investments under the Water and Environmental Program, the Rural Energy for America Program, the Electric Loan Program and the Higher Blends Infrastructure Incentive Program. The investments include $374 million through the Water and Waste Disposal Loan and Grant Program to modernize rural drinking water and wastewater infrastructure in 31 states. The funding also includes $78 million in renewable energy infrastructure in 30 states through the Rural Energy for America Program, and $17.4 million in loans in New Mexico and South Dakota through the Electric Loan Program. Finally, USDA is using $18.4 million in 20 states through the Higher Blends Infrastructure Incentive Program to build infrastructure to help expand the availability of higher-blend renewable fuels by approximately 218 million gallons per year. ************************************************************************************ Electric Car Sales Up 81 Percent Sales growth of both electric and hybrid vehicles outpaced overall market performance in the first quarter of 2021. Electrified vehicles - automobiles featuring large battery packs and electric motors in the propulsion system - accounted for 7.8 percent of the total U.S. market, up from 4.8 percent in the first quarter of 2021. Cox Automotive and Kelley Blue Book released the data that finds electrified vehicle sales growth of 81 percent far outpaced industry growth. Sales of electric vehicles - battery only - grew by 44.8 percent year over year, reaching nearly 100,000 sales in the quarter, which is a record. Sales of hybrid vehicles outpaced both the market and electric vehicles, doubling to more than 200,000 in the quarter. Hybrid sales are increasing more quickly as sales of hybrid and plug-in hybrid vehicles jumped by 106 percent in the first quarter of the year. The overall automobile market increased by 11.4 percent in the quarter.
| Rural Advocate News | Friday April 23, 2021 |
Washington Insider: Investment Fights and How to Pay Bloomberg is reporting this week that key Senate Republicans are already planning to participate in a revived system of earmarking congressional funds for local projects although their conference left in place a non-enforceable ban on the practice. The conference kept its non-binding ban on earmarks in its Wednesday meeting on caucus rules, members said. Democrats have said they plan to bring back a limited version of earmarks, which hadn't been used in a decade. Now, it appears that at least some Senate Republicans are planning to join in the process, as well. Senate Appropriations Vice Chairman Richard Shelby, R-Ala., said it'll be up to individual members to decide if they want to participate. He said he was confident that "the new system of earmarks won't get the bad reputation it had before it was banned in 2011." "If you don't want an earmark don't ask for one," Shelby said of this week's decision. "Even if you ask for one, you might not get one, because the old earmark days, they're gone. They're going to have to be meritorious, they're going to have to be substantive in nature, and meaningful for us to really even consider it." Sen. Shelley Moore Capito, R-W.Va., ranking member of the Senate Environment and Public Works Committee and of the Senate Appropriations Homeland Security Subcommittee said she'll consider possible earmarks. "I'm going to look seriously at earmarking," she told reporters. "If I can make my voice heard and be specific on it, and mindful of the transparency, I don't have a problem with it." Sen. Susan Collins, R-Maine, ranking member of the Senate Appropriations Transportation-HUD Subcommittee, also told reporters she plans to submit earmark requests. Members expected to vote on a proposal to remove the conference's ban on earmarks but didn't complete that vote on Wednesday, instead opting to leave the "symbolic ban" in place and let members decide for themselves how to legislate. "I certainly hope that every member of the Republican conference complies with what the conference rules say," Sen. Ted Cruz, R-Texas, an earmark critic, told reporters. "Can a member choose to act differently? Sure." In the meantime, Senate Republicans say they are working on an infrastructure counteroffer in an effort by conservatives to push the Biden administration to narrow the scope of its package and pay for it with user fees rather than a corporate tax hike. Republicans have discussed a ballpark figure of $600 billion to $800 billion, rather than the $2.25 trillion proposal by Biden. They've also pushed back on Biden's call for an increase in the corporate tax rate from 21% to 28% as they push to have their bill paid for with user fees. The anticipated announcement is closer to the beginning of negotiations than the end, Bloomberg opines. Capito, who has led the effort to assemble a Republican counteroffer, said it's "an opening bid" in discussions with the White House. "This is an honest bid and a negotiation," she told reporters on Wednesday. "And I just want them to know that we want to be at the table." Capito will join Commerce, Science, and Transportation ranking member Roger Wicker, R-Miss., Energy and Natural Resources ranking member John Barrasso, R-Wyo., and Banking, Housing, and Urban Affairs ranking member Pat Toomey, R-Pa., to announce the plan at a coming press conference, likely before the end of this week. Wicker called the new proposal "a very viable plan," in his remarks to reporters. Plans to pay for the spending are continuing to be a major divide between Republicans and Democrats. President Biden has said the bill's costs must be offset and proposed a corporate tax hike for upper bracket taxpayers to achieve that. Republicans argue that is a nonstarter. "We're not interested in raising taxes," Capito told reporters. "We think that people that use our infrastructure are a lot of the solution. There's a lot of private money out there." Bloomberg also noted that advocacy groups from states across the U.S. are urging Congress to "evenly" fund transit and highways in the next surface transportation reauthorization bill. The effort, convened by the National Campaign for Transit Justice, is expected to kick off today with letters sent to federal lawmakers from at least 13 states. In additional budget discussions, the White House told lawmakers the administration's goal is to send a full budget proposal for fiscal 2022 by Memorial Day, May 31, House Budget Chair John Yarmuth, D-Ky., told reporters Wednesday. That will help kick off a late start to the congressional budget process, he said. Yarmuth noted that lawmakers are doing preliminary work on a budget resolution, but thinks it will be June by the time the budget portion of the process is finished "because of delays on the White House's end." Members have discussed simply deeming a budget outline to allow appropriators to start their work, Yarmuth said. "Deeming" a resolution sets the top-line spending figures without going through the full process of adopting a budget resolution. So, we will see. It is clear that solutions to the question of how to pay for new federal investments will continue to be a hard, nearly impossible sticking point. Whether or not the administration can rely sufficiently on targeted, high bracket taxpayers and avoid new taxes for the middle class will be increasingly important; an issue producers should watch closely as these investment debates intensify, Washington Insider believes.
| Rural Advocate News | Friday April 23, 2021 |
Senators Again Push EPA To Restore The 'Integrity' Of The RFS EPA is being called on to set the 2021 and 2022 Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS) to require "conventional renewable fuel volumes of at least 15 billion gallons per year, as required by statute, along with the court-ordered 500 million gallons illegally waived from 2016 standards and increase biodiesel, advanced, and cellulosic volumes." The lawmakers told EPA Administrator Michael Regan that "restoring the integrity of the RFS and expanding market opportunities for renewable fuels should remain a core part of our plans to assist in the economic recovery of rural America and further reduce emissions from the transportation sector." The lawmakers also called on EPA to update their modeling on greenhouse gas (GHG) emissions reductions. The lawmakers also took issue with those refiners indicating they cannot comply with the RFS for 2021, noting the extension of the compliance deadlines for 2019 and 2020 and pointing out that action is in addition to the prior administration granting small refinery exemptions (SREs) that "undercut renewable fuels." They also sought to counter arguments that high prices for Renewable Identification Numbers (RINs) are threatening the viability of refiners, pointing out that there are many ways refiners can show compliance with the RFS. They called on EPA to "reject requests" to waive or reduce RVOs and continue the commitment to "support farmers and rural communities by upholding and restoring confidence in the RFS." The letter was signed by 12 bipartisan Midwest Senators, including Chuck Grassley, R-Iowa, Amy Klobuchar, D-Minn., Debbie Stabenow, D-Mich., and others.
| Rural Advocate News | Friday April 23, 2021 |
EPA's Regan Commits He Will Not Go Back To Obama-Era WOTUS Rule The Biden administration is seeking to tackle the issue of Clean Water Act regulations by "learning from the lessons of the past," EPA administrator Michael Regan told members of the House Appropriations Interior-Environment Subcommittee. Specifically on the issue of the Waters of the U.S. (WOTUS) rule from the Obama administration and the Trump administration rule, Regan said, "We don't have any intention of going back to the original Obama Waters of the U.S. verbatim, and we don't necessarily agree with everything that was in the Trump administration's version as well. We've learned lessons from both. We've seen complexities in both, and we've determined that both rules did not necessarily listen to the will of the people." He said that he and USDA Secretary Tom Vilsack are "attached at the hip" on the issue and Regan said he has had discussions with agriculture company officials about WOTUS since he has been at EPA. "I'm interested in moving forward, not in a ping-pong way, but a way that we can provide some certainty to the ag industry, where we don't overburden the small farmer but we also balance the protection of our wetlands and our sounds and estuaries," Regan said.
| Rural Advocate News | Friday April 23, 2021 |
Friday Watch List Markets A report on U.S. new home sales for March is set for 9 a.m. CDT Friday. Traders will check the latest weather forecasts and watch for any news of export sales at 8 a.m. At 2 p.m. CDT, USDA will release its cattle on-feed estimate for April 1, comparing to 12.0 million head reported for March 1. Weather Light rain showers are in store for the central and southeastern Plains and western Midwest Friday. We'll also see late-season snow in the northwestern Plains. Other crop areas will be dry. Freeze threats are focused on the Ohio Valley through the Mid-Atlantic coast.
| Rural Advocate News | Thursday April 22, 2021 |
USDA Expands and Renews Conservation Reserve Program Agriculture Secretary Tom Vilsack just announced that USDA will open enrollment in the Conservation Reserve Program with higher payment rates, new incentives, and a more targeted focus on the program’s role in climate change mitigation. Additionally, USDA is announcing investments in partnerships to increase climate-smart agriculture, including $330 million in 85 Regional Conservation Partnership Program projects and $25 million for On-Farm Conservation Innovation Trials. Secretary Vilsack made the announcement at Wednesday’s White House National Climate Task Force meeting. Vilsack says, “We need to invest in CRP and let it do what it does best—preserve topsoil, sequester carbon, and reduce the impacts of climate change.” USDA’s goal is to enroll up to four million new acres in CRP by raising rental payment rates and expanding the number of incentivized environmental practices allowed under the program. USDA says CRP is one of the world’s largest voluntary conservation programs with a long track record of success. ************************************************************************************ Regan: EPA Won’t Return to Obama-era WOTUS Definitions Environmental Protection Agency Administrator Michael Regan told lawmakers Wednesday the agency would not go back to the Obama-era definitions of Waters of the U.S. Regan made the comments as part of the 2022 Budget Request for EPA during a House Appropriations Subcommittee hearing. Regan told lawmakers, “We don’t have any intention of going back to the original Obama Waters of the U.S. verbatim.” The statement was in response to questions from two Republican members of the subcommittee. Regan, who noted his meetings with top agriculture industry leaders, says, "We all believe that the courts weighed in on the Obama rule, and that the courts weighed in on Trump's Navigable Water Rule." Regan pledged to begin a stakeholder engagement process, including agriculture and environmental groups, to find a way to move forward. Specifically, in a way, Regan says, "where we don't overburden the small farmer, but we also balance the protection of our wetlands," adding, "I think we can do it." ************************************************************************************ Agriculture Welcomes Growing Climate Solutions Act Agriculture groups responded mostly positively to the Growing Climate Solutions Act, sponsored by Senate Ag Committee Chair Debbie Stabenow and Indiana Republican Senator Mike Braun. The committee will hold a markup session for the legislation Thursday(today). The act establishes a Department of Agriculture technical assistance and certification program to assist producers and forest owners seeking to participate in voluntary carbon markets. Additionally, the bill would establish an advisory committee to make recommendations to Congress and the Department of Agriculture. The Food and Agriculture Climate Alliance applauded the bill’s introduction. American Farm Bureau Federation President Zippy Duvall says, “This bill is evidence lawmakers can come together in a bipartisan manner to find solutions to environmental challenges while respecting the role of farmers and ranchers.” And National Farmers Union President Rob Larew says, “By creating a certification program, the Growing Climate Solutions Act would bring much-needed clarity and certainty” to carbon markets. ************************************************************************************ Baldwin Introduces Bipartisan Legislation to Retroactively Extend PPP Benefits Senator Tammy Baldwin, Chair of the Senate Agriculture Appropriations Subcommittee, this week introduced bipartisan legislation to extend more relief to farmers and small businesses. The PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act offers changes to the Paycheck Protection Program. The bill includes a legislative fix authored by Senator Baldwin that would make critical changes to PPP loan calculations to allow self-employed farmers and ranchers to apply for more generous PPP loans based on their gross income, retroactively. Under Baldwin's legislation, any self-employed farmer, even those who already received a PPP loan based on their net income and got it forgiven, could now get a loan for the difference between the gross and the net income loan amounts. Baldwin says of the legislation, "farmers will now have an opportunity to receive an increased benefit with more generous loans." Two other Democrats and four Republicans joined Baldwin in introducing the bill. ************************************************************************************ USDA Seeks Comments on Food System Supply Chains The Department of Agriculture seeks comments on a Department-wide effort to improve and reimagine food supply chains. Agriculture Secretary Vilsack announced the comment period Wednesday as part of a response to an executive order signed by President Joe Biden in February. The comments received will help USDA assess the critical factors, risks, and strategies needed to support resilient, diverse, and secure supply chains and. USDA says such supply chains are needed to address conditions that can reduce critical processing and infrastructure capacity and the availability and integrity of critical goods, products, and services. Identifying food system supply chain bottlenecks and vulnerabilities also may provide valuable insights into the competitive and fair markets landscape, effects on local and regional producers and processors, and equitable access to food and economic opportunity across diverse communities. Secretary Vilsack says, "USDA plans to tackle this supply chain assessment holistically – looking across a full range of risks and opportunities.” ************************************************************************************ USDA’s National Agricultural Classification Survey is Underway The Department of Agriculture’s National Agricultural Classification Survey is arriving in mailboxes around the nation. The survey, one of the most important steps in determining who should receive a 2022 Census of Agriculture questionnaire, asks recipients if they are involved in agricultural activity. USDA’s National Agricultural Statistics Service recently mailed the NACS to 633,000 potential agricultural producers. NASS requests that each person who receives the survey respond by May 3. NASS Census and Survey Division Director Barbara Rater says the survey “shows the breadth of American agriculture and helps to ensure we get a complete count of farms and ranches in the upcoming agriculture census.” NASS encourages recipients to respond online at www.agcounts.usda.gov, using the 12-digit survey code mailed with the survey. Completed questionnaires may also be mailed back in the prepaid envelope provided. Referenced by countless national and local decision-makers, researchers, farm organizations, and more, the once-every-five-year Census of Agriculture is the leading source of facts about American agriculture.
| Rural Advocate News | Thursday April 22, 2021 |
Washington Insider: New Digital Weapon for China Bloomberg is reporting this week that in spite of China's economic and military power "perhaps nothing reveals Beijing's weaknesses more than the U.S. control of the global financial system." Recently, China has sought ways to counteract U.S. sanctions after President Trump targeted Chinese officials and companies over policies from the South China Sea to Xinjiang. Hong Kong's leader can't access a bank account and a top executive at Huawei Technologies Co. is detained in Canada. Even China's state-run banks are complying with U.S. sanctions. That's one reason the Biden administration is starting to study whether China's development of a digital currency will make it harder for the U.S. to enforce sanctions, Bloomberg said. The digital yuan, which could see a wider roll out at the 2022 Winter Olympics is also spurring the U.S. to consider creating a digital dollar. But instead of challenging U.S. dollar dominance and neutralizing sanctions, the digital yuan appears potentially more geopolitically significant as leverage over multinational companies and governments that want access to China's 1.4 billion consumers. Clearly the United States has a lot of power through our Treasury sanctions," Matt Pottinger, former U.S. deputy national security adviser in the Trump administration said. "That currency can be turned off like a light switch." So far China has mostly resisted hitting foreign firms in response to U.S. actions on companies like Huawei. But Beijing has gone after companies like Hennes & Mauritz AB for statements on human-rights issues, even while government officials have been careful to avoid directly endorsing a boycott. Controlling access to China's massive market remains the best way for Beijing to hit back at the U.S. As long as Chinese companies still want access to the broader financial world dominated by the U.S. and its allies, Washington can effectively wield sanctions against nearly anyone who doesn't operate exclusively in China's orbit. While President Xi Jinping has called for greater self-sufficiency in key technologies like advanced computer chips, a financial decoupling from the U.S. would only hurt China's economy and potentially leave the Communist Party more exposed to destabilizing attacks. After Xi effectively ended Hong Kong's autonomy last year with a sweeping national security law, the U.S. refrained from cutting off the territory's ability to access U.S. dollars due to the potential devastation to the global financial system. Widespread use of the digital yuan -- also known as the e-CNY -- could potentially give China's central bank more data on financial transactions than the big tech giants, allowing the Communist Party to both strengthen its grip on power and fine-tune policies to bolster the economy. However, while that level of control may boost growth in the world's second-biggest economy, it also risks spooking companies and governments already wary of China's track record on intellectual property rights, economic coercion and rule of law. China's ability to see every transaction may make it difficult for foreign banks to use the digital yuan and still comply with confidentiality rules in their home countries, according to Emily Jin, a research assistant at the Center for a New American Security. But, she added, the currency might appeal to some regimes that prioritize control over privacy protection. The digital yuan would serve as a back-up to Ant Group Co.'s Alipay and Tencent Holdings Ltd.'s WeChat Pay, which together make up 98% of the mobile-payments market, according to Mu Changchun, director of the central bank's Digital Currency Research Institute. Last month he said the electronic yuan has the "highest level of privacy protection" and the central bank wouldn't directly know the identity of users, but the government could get that information from financial institutions in cases of suspected illegal activity. Chinese policy makers have also repeatedly emphasized that the digital yuan isn't meant to challenge the dollar. People's Bank of China Deputy Governor Li Bo said last weekend the motivation for the e-CNY is primarily for domestic use. The Chinese currency now makes up about 2% of global foreign exchange reserves compared with nearly 60% for the U.S. dollar and most of Beijing's trade and loans in Xi's Belt-and-Road Initiative are disbursed in dollars. "The dollar is not the dominant reserve currency because the Americans say it must be," said Michael Pettis, finance professor at Peking University and senior fellow at the Carnegie-Tsinghua Center in Beijing. "The dollar is the dominant reserve currency because the Chinese, the Europeans, the Japanese, the South Koreans etc. say it must be. It's the rest of the world that imposes that because they think its the safest place to park money." China began research on the digital yuan back in 2014. It has begun technical testing with Hong Kong for cross-border payments and is working with Thailand and the United Arab Emirates on real-time foreign exchange settlements. Authorities are also studying how the digital yuan can be combined with 5G networks and the internet of things. Josh Lipsky, director of the Atlantic Council's GeoEconomics Center, said. "China is really leading in this area and it should be a wake-up call to the U.S. and to Europe," he said. "There is a serious first mover advantage not because of what China will do, but what other countries are doing. So, we will see. There is a strong hope across agriculture that the massive financial control systems can be made to accommodate trading needs -- and that new deals to help supply China's growing food needs can be made, as well. These are among the world's most promising markets and should be redeveloped and expanded to the extent that is possible, Washington Insider believes.
| Rural Advocate News | Thursday April 22, 2021 |
Revised Climate Solutions Measure Reintroduced A bipartisan group of senators reintroduced the Growing Climate Solutions Act Tuesday, a bill that would establish a federal program to help agriculture producers access carbon credit markets. Senate Ag Chair Debbie Stabenow, D-Mich., joined Sens. Mike Braun, R-Ind., Lindsey Graham, R-S.C., and Sheldon Whitehouse, D-R.I., spearheading the legislation. The American Farm Bureau Federation is one of more than 60 agricultural and environment organizations to back the measure. Farm Bureau President Zippy Duvall called the bill an "improved" version of the one introduced in the last Congress.
| Rural Advocate News | Thursday April 22, 2021 |
USDA Seeking Public Input to Compile Report On Supply Chain Issues USDA is calling for public comments through May 21 on actions to "secure and strengthen" U.S. supply chains as it seeks to prepare a report on supply chain issues for agriculture commodities and food products. The request for comments, published in the Federal Register April 21, covers a host of topics and USDA said they will also use feedback provided to shape their thinking on "how stimulus relief programs and spending related to food supply chain resilience as authorized by the Consolidated Appropriations Act, 2021 (CAA), and the American Rescue Plan Act of 2021 (ARPA) can help to increase durability and resilience within the U.S. food supply." The request covers a broad range of issues for the supply chain in food and agriculture, including on issues such as "market concentration and consolidation," on crops or products not produced here that could be, transportation systems, digital products, risks posed by climate change, and "how to best target support for socially disadvantaged producers and processors, tribal communities, small businesses, beginning farmers and ranchers, and other key stakeholder groups." USDA also wants commenters to offer any "specific policy recommendations important to transforming the food system and increasing reliance in the supply chain for the sector." USDA is to provide a report within one year of the executive order signed February 24 by President Joe Biden on "America's Supply Chain," and the comments it is seeking are aimed at providing information to compile that report. The broad nature of the request also outlines the administration's policy thinking moving forward which appears to be less focused on mainstream production agriculture.
| Rural Advocate News | Thursday April 22, 2021 |
Thursday Watch List Markets USDA's export sales report, U.S. jobless claims and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CDT Thursday. A report on March U.S. existing home sales and an index of leading indicators is set for 9 a.m., followed by the Energy Department's weekly report of natural gas inventory at 9:30 a.m. CDT. USDA's monthly cold storage report will be released at 2 p.m. CDT. Weather Thursday will be mainly dry and cool to cold across the Midwest, with morning freeze threat and disruption to fieldwork and planting. Scattered light rain will move across portions of the Plains during the day; however, northern and far southwestern sectors face extreme fire threats due to dry conditions and strong winds.
| Rural Advocate News | Wednesday April 21, 2021 |
USDA Reports Early Planting The amount of corn planted doubled in the last week, but don’t expect the same progress this week, with cold weather and snowfall moving across the Midwest. The National Weather Service issued freeze warnings across the central and eastern Corn Belt as a late winter storm tracks through the region, along with winter weather advisories. The Department of Agriculture’s latest Crop Progress Report showed corn plantings over the last week increased to eight percent, from four percent last week of the crop planted. Just two percent of the crop has emerged. Last year, during the same time, six percent of the crop was in the ground. USDA also reports three percent of the nation’s soybean crop is planted, compared to two percent last year. Meanwhile, 11 percent of the nation’s cotton crop is in the ground, along with 15 percent of the sorghum crop, 33 percent of the rice crop and 25 percent of sugar beets. ************************************************************************************ Senators Offer Legislation to Help States Rebuild Infrastructure Following Extreme Weather U.S. Senators Tammy Baldwin and Mike Braun Tuesday introduced bipartisan legislation to help states rebuild stronger and more resilient roads, highways and bridges. The Wisconsin Democrat and Indiana Republican say the legislation will help states as they recover from extreme weather and natural disaster damage brought by severe storms, floods or hurricanes. The Federal Highway Administration’s Emergency Relief Program provides federal funding to states to rebuild roads and bridges damaged by natural disasters. Incorporating resiliency improvements into emergency relief projects has become increasingly important, the Senators say. Yet too often, highway infrastructure is rebuilt to pre-disaster specifications, leaving roads and bridges vulnerable to another disaster and costly damage repairs. The bipartisan Rebuilding Stronger Infrastructure Act ensures that resilience improvements are eligible for federal funding and requires the Federal Highway Administration to provide states with the guidance and tools needed to rebuild infrastructure that is more resilient to the next severe weather event. ************************************************************************************ Canadian National Launches Rival Bid for Kanas City Southern Railroad Canadian National Railway Tuesday made a rival bid for Kansas City Southern. The proposed cash-and-stock transaction is valued at $33.7 billion. The proposal represents a 21 percent premium over the implied value of the Canadian Pacific transaction. Dow Jones reports the new bid from Canadian National is $200 in cash and 1.059 Canadian National shares for each Kansas City share. That works out to roughly $325 a share. The prior bid is $90 a share and 0.489 Canadian Pacific shares for each Kansas City share, worth roughly $270 a share. Regardless of who wins the bidding war, the winners of the looming battle look to be KCS shareholders, as shares are up 25 percent for the year. In a news release, Canadian National states, “CN is ideally positioned to combine with KCS to create a company with broader reach and greater scale, and to seamlessly connect more customers to rail hubs and ports in the U.S., Mexico and Canada.” ************************************************************************************ Growth Energy Calls on EPA to Fix E15 Labeling Growth Energy and the National Corn Growers Association submitted comments to the Environmental Protection Agency this week regarding E15 labeling and infrastructure. Growth Energy supports modification of the E15 label requirement to "increase clarity and ensure it adequately advises consumers of appropriate uses of the fuel." In addition, Growth Energy and NCGA support EPA's proposal to modify the underground storage tank compatibility requirements for E15 and other fuel blends. Growth Energy CEO Emily Skor states, "As our nation faces the challenges of climate change, it's imperative that EPA act immediately to support greater access to cleaner renewable fuel blends." NCGA President John Linder wrote in the organization's comments, "Finalizing this proposal will remove additional barriers to retailers offering E15 and provide an immediate fuel decarbonization opportunity." NCGA’s comments urged EPA to adopt proposed updates to the E15 label and make further revisions to the label statement to keep it fact-based and avoid speculation and confusion. ************************************************************************************ USDA Releases Vegetable and Pulses Outlook The Department of Agriculture recently released its April 2021 Vegetable and Pulses Outlook. Despite a continuing pandemic and weather-related events, USDA says the U.S. vegetable industry was able to overcome a myriad of obstacles and continue to supply consumers with an almost uninterrupted flow of vegetables and pulse crops. Assuming the impact of the pandemic begins to wane in the second half of 2021, potatoes and potato products may see a burst of demand as consumers resume some activities such as travel and away-from-home dining. Meanwhile, the Producer Price Index for all fresh vegetables, excluding potatoes, reported by the Bureau of Labor Statistics through the first quarter of 2021, reveals fresh vegetable producer prices decreased by eight percent. And as global economic activity continues to recover from the COVID-19 pandemic, and energy prices return to and exceed pre-pandemic levels, growers can expect to pay more for most of the inputs required to produce, pack, and ship vegetables in 2021. ************************************************************************************ USDA Issues Pandemic Flexibilities for Schools and Day Care Facilities through June 2022 The Department of Agriculture Tuesday issued flexibilities to allow school meal programs and childcare services return to serving healthy meals in fall 2021. Several meal service flexibilities that enable social distancing are now extended through June 30, 2022. A recent study from Tufts University found that in 2018, schools were the single healthiest source of food consumed across a sample of children and adults. Agriculture Secretary Tom Vilsack says, “USDA will remain relentless in ensuring our nation’s children get the critical nutrition they need.” Vilsack says states and districts wanted waivers extended to plan for a safe reopening in the fall. Schools nationwide are allowed to serve meals through USDA’s National School Lunch Program Seamless Summer Option, which is typically only available during the summer. This option maintains the nutrition standards of the standard school meal while allowing schools to serve free meals to all children. In addition, schools that choose this option will receive higher-than-normal meal reimbursements.
| Rural Advocate News | Wednesday April 21, 2021 |
Washington Insider: Green Plan Fuels Farm Rush to Profit From Carbon Market Bloomberg is reporting this week that President Joe Biden's “green push” in the discussions of Earth Day this week is fueling something of a gold rush across America's farm country as companies seek to profit from a nascent market for pollution offsets. Examples include butter maker Land O'Lakes and agri-tech firms Indigo Ag and Nori LLC who all have set out to sell carbon credits, produced when farmers adopt practices that reduce emissions. And more firms are moving in, Bloomberg says, with non-profit group Ecosystem Services Market Consortium -- supported by Cargill Inc., General Mills Inc. and McDonald's Corp. -- planning to launch a national carbon market by 2022. With livestock emitting methane as fertilizers emit gases and tractors burning diesel, agriculture is seen as part of the climate problem with the sector accounting for about 10% of U.S. greenhouse emissions total. Still, the world's soil may be able to sequester as much as the fossil-fuel emissions from the transport sector globally -- or nearly as much as the carbon dioxide released by the electricity industry worldwide. It's that potential that agriculture firms, big and small, are keen to tap. Buyers so far include Microsoft, North Face and others eager to offset their emissions. “It's a little bit of a gold rush out there, with a lot of new entrants coming in with a lot of great claims,” said Chris Harbourt, global head of carbon at Indigo, which will be one of the few companies to have credits verified by formal carbon registries. “But do they have the buyers to really back it up?” The Biden administration has promised to make climate change a top priority and bring down emissions to net-zero by 2050. And the president also has ordered all agencies to come up with a whole-of-government approach to achieving the goal. USDA Secretary Tom Vilsack touts potential “early wins” from a sector he argues can pivot more rapidly than other major polluters such as power plants, transportation and construction. U.S. agriculture in 2019 was responsible for 629 million metric tons of carbon dioxide-equivalent emissions, up 8 million tons from the prior year, according to EPA. A carbon credit represents a 1 metric ton reduction in carbon dioxide or the equivalent amount in a different greenhouse gas. Farming is in constant exchange with the atmosphere, Bloomberg notes. Methane emissions from livestock are 21 times more powerful than carbon dioxide. Fertilizers emit nitrous oxide, more potent yet with 300 times the warming impact of carbon dioxide. But crops, pasture grasses and trees take in carbon from the atmosphere and deposit it in roots and soil. The idea is to re-balance that exchange. Special feeds can reduce livestock emissions and digesters can turn methane from manure into biofuel. Cutting down on fertilizer reduces nitrous oxide. “No till” and reduced-till farming avoids disturbing soil and reduces the emissions from that source. Cover crops planted between growing seasons draw more carbon from the air into the soil and over time may reduce the need for fertilizer. “For the first time, many different sectors are realizing that you need brown and green to actually do green,” said Erin Fitzgerald, chief executive officer of U.S. Farmers and Ranchers in Action. “We need to lean into the next decade. This is no longer business as usual. We're faced with extreme episodic weather events.” But it's also far from simple. Startup costs can swamp financial gains so large operators may squeeze out smaller ones and increase farm consolidation. Adding a cover crop costs at least $20 an acre for the seeds and up to $15 an acre to get it planted, according to Indigo's Harbourt. And there's the question of how to reward farmers like organic growers who are already using these methods. Mark Isbell, an Arkansas rice farmer who has reduced emissions, says he is worried about creating “perverse incentives.” A coalition of farm groups has suggested one-time payments for early adopters. Environmental groups are split, worrying about paying farmers for steps they might take anyway. Activists are pushing the administration to lay out ambitious goals and detailed plans when it holds its virtual summit with world leaders this week on Earth Day. However, there are also questions over how to measure carbon sequestration since soil types and climate vary greatly from farm to farm and even within the same plot of land. Verification is an issue, with Indigo so far being one of the few working with the so-called carbon registries that are recognized in voluntary markets. Registries haven't escaped scrutiny. Nature Conservancy, the top U.S. seller of carbon offsets, said it's conducting an internal review of its portfolio following concerns that it's facilitating the sale of meaningless carbon credits to corporate clients. Pricing is another issue, with wild variations between what companies charge. CME Group Inc., one of the world's largest derivative exchanges, recently started a carbon offset futures contract, accepting credits issued by certain registries. “It's a voluntary market, it's a developing market, it's a nascent market,” said Ben Fargher, a managing director of sustainability at Cargill, which for now is only using carbon programs to offset its own emissions. “That price discovery is still being discerned.” Biden officials say they want to move quickly and their climate policy for farmers will be based on voluntary incentives. Robert Bonnie, Vilsack's main climate adviser, posed a scenario in a transition memo in which a USDA carbon bank might spend $1 billion a year to buy farm-related credits. So, we will see. Secretary Vilsack has experience with these issues, gained in his previous tour as Secretary, so he can be expected to play a strong role in the newly emerging policies -- efforts that likely will be both important and controversial and should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday April 21, 2021 |
CFAP Payment Update Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) have reached $13.45 billion as of April 18, up from $13.33 billion the prior week. Payments break down to $6.22 billion for acreage-based crops, $3.42 billion for livestock, $2.55 billion for sales commodities, $1.21 billion for dairy, and $57.1 million for eggs/broilers. There is a slight increase for CFAP 1 payments as the total still rounds to $10.55 billion. But payments for livestock are now at $5.04 billion ($5.03 billion prior), $2.66 billion for non-specialty crops ($2.66 billion prior), $1.80 billion for dairy ($1.80 billion prior), $930.7 million for specialty crops ($929.7 million prior), $120.7 million for aqua/nursery/flora ($120.6 million prior) as of April 18.
| Rural Advocate News | Wednesday April 21, 2021 |
Brazil Suspends Import Duties On Soybeans/Products, Corn Brazil's Ag Ministry announced Monday that the country has suspended import duties on corn, soybeans, soymeal and soyoil through the end of the year as it seeks to rein in commodity price inflation. The Chamber of Foreign Commerce (Camex) had previously authorized suspension of corn import duties until March 31 and soybean import duties until January 15. The ministry said the expectation when the original action was announced was that external prices would stabilize. "However, international prices had an upward trend, putting even more pressure on domestic prices," the ministry said. "Domestic prices continued to rise due to the strong external demand and the continued devaluation of the real against the dollar." Some are expecting that the U.S. could benefit from the action.
| Rural Advocate News | Tuesday April 20, 2021 |
Farm Groups Support Bonnie Nomination for FPAC Farm groups welcome President Joe Biden’s nomination of Robert Bonnie to oversee The Department of Agriculture’s Farm Production and Conservation mission area as undersecretary. FPAC is significant to agriculture and includes the Farm Service Agency, which manages commodity programs and the Conservation Reserve Program, the Risk Management Agency, which administers crop insurance, and the Natural Resources Conservation Service, which manages conservation programs other than CRP. American Farm Bureau Federation President Zippy Duvall says, "We appreciate his outreach and engagement with Farm Bureau during his tenure with the Biden administration, and we are hopeful he will remain fully engaged with farmers and ranchers in his new role." American Soybean Association President Kevin Scott says, "We have appreciated his public service in support of agriculture, and we respect Bonnie's accessibility and responsiveness to us as farmers." Finally, Agriculture Secretary Tom Vilsack says Bonnie is "one of the nation’s foremost authorities and leaders on working lands approaches to conservation and incentive-based climate and conservation practices.” ************************************************************************************ DMI Announces Earth Day Strategy Dairy farmers’ longstanding commitment to the environment and their stories of stewardship are taking center stage for Earth Day communications strategies. Following Earth Day on April 22 and continuing into May, Dairy Management Inc. will showcase tangible examples of real environmental progress being made on farms and throughout the dairy supply chain. DMI will use its channels, including USDairy.com and its social media properties, to publish sustainability-related content, such as videos, articles and infographics highlighting farmer stories. Other strategies include cultural influencers publishing dairy sustainability content via their social channels and the recent release of a video from media partner Vox examining what happens to nutrition and the environment if the U.S. dairy cow herd was removed. Finally, the checkoff has led efforts to build awareness with audiences about dairy's vital role in sustainable, equitable and secure food systems over the past six months, sparked by the announcement of the 2050 Environmental Stewardship Goals and Net Zero Initiative. ************************************************************************************ Sysco, Cargill, NFWF Announce Sustainable Cattle Grazing Program Sysco and Cargill, two of the world's largest food companies, just announced a major partnership with the National Fish and Wildlife Foundation. The partnership will help ranchers in Texas, Oklahoma, New Mexico, Kansas and Colorado tackle climate change and improve grasslands and wildlife habitat. Through a public-private partnership, $5 million in funding from Sysco and Cargill will accelerate the implementation of sustainable grazing practices over the next five years across one million acres of an area responsible for approximately 30 percent of the beef produced in the United States. The Southern Plains Grassland Program has the potential to sequester up to 360,000 metric tons of carbon per year, or the equivalent of removing 78,000 passenger vehicles from the road in one year. Through NFWF, and in coordination with USDA's Natural Resources Conservation Service "Working Lands for Wildlife" framework, conservation experts will work with interested ranchers to plan and implement voluntary grassland management practices with consideration to the unique needs of their land. ************************************************************************************ Bayer Announces Carbon Credits Program Enhancements Bayer recently announced enhancements to the Bayer Carbon Program, providing new opportunities for U.S. growers to participate for the 2021-22 program season. Launched last summer, Bayer says the program takes a farmer-centric approach by offering growers simplicity, certainty and flexibility. By paying U.S. farmers for implementing climate-smart farming methods such as strip- or no-till and cover crops, which help sequester carbon in the soil, farmers receive guaranteed payments and are rewarded for how they produce, not just what they produce. Changes include a significant geographic expansion, nearly doubling the number of states where growers are eligible to participate. For the first time, growers who have previously adopted some climate-smart farming practices also may be able to enroll those acres in the program. Enhancements for the 2021-2022 program season include eligibility for growers who have adopted strip- or no-till or cover crops on fields on or after January 1, 2012. For a complete list of eligible geographies, to learn more or enroll in the program, visit bayercarbon.com. ************************************************************************************ JBS to Purchase Plant-based Food Company The world’s largest protein company and second-largest food producer has entered into an agreement to purchase Vivera, Europe’s third-largest plant-based food company. JBS SA announced the agreement Monday, worth $410 million. Vivera develops and produces a broad range of plant-based meat replacement products for major retailers in over 25 countries across Europe, with market share in the Netherlands, the United Kingdom and Germany. The deal includes three manufacturing facilities and a research and development center located in the Netherlands. The acquisition of Vivera strengthens and boosts JBS’ global plant-based food platform, according to the company. Strong growth is expected in the plant-based protein category throughout global markets. The deal will add a brand to JBS' portfolio that is well- established in consumer preference, strengthening the company's focus on value-added products. To nurture its entrepreneurial spirit, JBS plans to manage Vivera as a standalone business unit with its current leadership team to remain in place. ************************************************************************************ Fuel Prices Remain Unusually Stable In an unusual feat for spring, the national average price of gasoline and diesel is unchanged from a week ago. The national average price of gas stands at $2.85 per gallon, 2.2 cents lower than a month ago, and $1.07 higher than a year ago. The national average price of diesel is also unchanged from a week ago and stands at $3.07 per gallon. Meanwhile, nationally, gasoline demand fell 0.57 percent. Gas Buddy’s Patrick De Haan says, “Gasoline demand has given up ground for the second straight week, likely due to some areas seeing a rise in coronavirus cases, and as spring break plans conclude.” De Haan notes that the next trend in gas prices isn’t evident just yet, and we may see additional slight sideways moves in the weeks ahead, until either demand starts to increase notably again, or we see the opposite. Crude oil prices perked up last week on solid improvements in jobless claims, retail sales and consumer sentiment.
| Rural Advocate News | Tuesday April 20, 2021 |
Washington Insider: Politics and the Fed's Focus on Climate The Washington Post is reporting that criticism of the Federal Reserve is growing “as it wades into climate and equity issues.” While tensions are not new for the institution, the source is now different, the Post says. After years of criticism from the Trump administration, it now faces warnings of politicization from Republican lawmakers. As the Fed has taken a more expansive view of how it could work toward full employment, stable inflation and financial stability -- the loosely defined tasks Congress handed it -- conservative economists and lawmakers have complained that it risks going too far. One of the most prominent critics is Senator Patrick Toomey, R-Pa., and a member of the Senate Banking Committee. Such complaints don't carry much immediate threat, with Democrats in charge of Congress and the White House. But the mere accusation that the Fed is bowing to Democrats is a striking inflection point for a central bank that has often lived in America's imagination as a friend of bankers and free-market enthusiasts. The timing is also surprising since Republicans lead the institution. There's a reason for the shift, central bank watchers say: The Fed is trying to figure out how to do its job in a changing economy. "It's not so much a give in to political pressure as it is to economic reality," Steven Kelly, a researcher at Yale's Program on Financial Stability, said. That is particularly true when it comes to the focus on labor market equity, he said. The Fed is in charge of guiding the economy by setting the price of money. It moves interest rates to boost growth during bad times or to prevent painful overheating during good ones. Its national and regional policymakers -- 18 at present -- have been appointed by the president or by business and community leaders and do their jobs independent of the White House and with only arms-length oversight from Congress. Fed officials have guarded their independence fiercely and they generally refuse to weigh in on heated political debates. But they have occasionally made exceptions. Their opinions have at times been welcome to Republicans -- but that started to change after the 2007 to 2009 financial crisis, as Republicans sometimes accused former Fed Chair Alan Greenspan's successors of being political. When Janet Yellen, the Fed chair from 2014 to 2018 and now the Treasury secretary, talked about skyrocketing inequality, Republican lawmakers complained. In the years since, the Fed has become more emboldened to discuss issues that have an economic impact, even when they fall into areas of partisan disagreement. And Powell, who was appointed to the Fed by President Barack Obama but elevated to chair by Trump ushered in a new policy framework last year. It clarified that the Fed saw its full employment target as "a broad-based and inclusive goal." Chairman Powell said last week that the tweak was a nod to concerns about economic inequality at a time when low inflation rates had given the Fed leeway to foster a hotter job market that pulled more people in and pushed wages higher. And when the pandemic spurred a financial meltdown last March and April, the Fed introduced programs to keep credit flowing not just to Wall Street but also to Main Street, including state and local governments. In the subsequent months, Powell gently but firmly pushed for more congressional spending to shore up the economy. The Fed's emergency efforts were initially welcomed by both parties but ended in blowback the post says. In fact, Sen. Toomey held up stimulus negotiations in December 2020 to insert language that might have -- in its original format -- prevented the Fed from setting up programs that could help business or municipal borrowers. His office said the wording, which was eventually watered down, would protect the Fed from becoming a tool for Democrats. But Toomey has continued to raise concerns that the Fed is on the brink of losing its neutrality. "The Federal Reserve's independence and careful adherence to nonpartisanship has allowed it to avoid being seen as a politicized body," he wrote. "The Federal Reserve may pursue mission creep or welcome itself to political capture,” he continued. “But such activities are inconsistent with its statutory responsibilities." But Fed officials say the central bank is being pragmatic, not political. Chairman Powell said last week that the Fed sees such issues “through the lens of our existing mandates” -- racial, gender and other disparities in economic outcomes "hold the economy back," for example. Still, the Fed knows it's in fraught territory. When Fed officials talk about inequality, they often discuss opportunity -- a framing with more bipartisan backing. There is a risk if the Fed is seen as a "quote unquote Democratic institution," said Peter Conti-Brown, a Fed historian at the University of Pennsylvania. "The Fed always needs political support to do its job well," said Sarah Binder, a political scientist at George Washington University who studies the Fed's politics. And even now, some Democrats say the central bank could go further. Rep. Rashida Talib, D-Mich., has pushed the Fed to do more to get cheaper credit to states and localities, for instance. "I have a lot of respect for Chairman Powell," said Rep. Andy Barr, R-Ky., who has at times worried about the Fed's climate push. Still, Barr said, the regional banks risked "overstepping" by getting specific about social issues, inconsistent with the Fed's long history of jealously guarding its independence. So, we will see. The real test of the Fed's policies likely will be in future responses to inflation, if such trends develop. So far, the Fed has been quite transparent about its intentions in such cases, but actually sorting out the temporary from the dangerous can be extremely difficult and should be watched closely by producers as the economy bounces back from the COVID's destruction, Washington Insider believes.
| Rural Advocate News | Tuesday April 20, 2021 |
House Republicans Unveil Climate Measures House Republicans Friday unveiled their own slate of climate measures to counter Democratic proposals as Biden has made combating global warming a top priority of his administration. The Agriculture Committee minority offered five bills that aim to encourage private-sector partnerships in conservation and to help farmers protect the health of soil, among other initiatives. Republican members on the House Natural Resources Committee proposed another measure aimed at reducing America's reliance on imported critical minerals. "We're no longer debating whether or not climate change is real," House Agriculture Committee Ranking Member Glenn "GT" Thompson, R-Pa., said in an interview. "We're simply debating the best way to address it." Thompson is also calling for the panel to hold hearings on USDA's farm bill implementation relative to climate goals that were in the 2018 Farm Bill.
| Rural Advocate News | Tuesday April 20, 2021 |
Tuesday Watch List Markets There are no official reports scheduled for Tuesday, but traders will keep close watch on the latest weather forecasts. Export sales have been quiet lately, but any new announcements will be noticed. Weather Snow and light rain are in store for portions of the central Plains and western Midwest Tuesday. Other crop areas will be dry. Temperatures will be well below normal in northern and central areas with possible damage to winter wheat and emerged row crops.
| Rural Advocate News | Monday April 19, 2021 |
EPA Asking Corn, Oil for Input on the Next Phase of U.S. Biofuel Policy The Environmental Protection Agency wants industry groups to give input on where the future of U.S. biofuel policy is heading after the current phase finishes in 2022. Four sources told Reuters that this is a new opportunity for the oil, corn, and biofuel industries to reshape the Renewable Fuel Standard, the source of a bitter dispute between the industries for more than ten years. Under the regulation, the EPA will have discretion over the annual mandated biofuel blending volumes from 2023 forward, taking over that responsibility from Congress. Oil and biofuel groups have begun to meet with the EPA and talk about ways the agency could handle the RFS after that date. While the EPA declined to comment to Reuters, some groups like the American Petrochemical Institute say they want the EPA to use the RFS to encourage increased use of advanced and cellulosic biofuels instead of conventional biofuels like ethanol. Brooke Colman of the Advanced Biofuels Business Council says the EPA shouldn’t discourage conventional biofuel production in favor of other biofuels. “Any plan that displaces biofuel with biofuel is an innovation-killing non-starter that would cannibalize the industry revenue needed for investment in innovation,” Colman says. ********************************************************************************************** U.S. Sorghum Exports Shatter Single-Week Record The USDA says American sorghum exports during the week ending on April ninth totaled a record-breaking 33.9 million bushels. That tops the previous record by more than 10 million bushels, a mark set in August 2020. In addition to the record-breaking exports, new sales commitments hit 33.8 million bushels, most of which got purchased by China. “Sorghum exports continue to show a strong demand for our crop, and new purchases at this level only reaffirm that,” says National Sorghum Producers CEO Tim Lust. “The size of shipments reported this last week is equivalent to the size of approximately 10-12 Panamax vessels.” New crop purchases of U.S. sorghum at this point in the marketing year are also at a record level, reaching 40 million bushels during the week ending April ninth. That’s a 264 percent increase from the previous record set in 2014. “This is the strongest new crop demand we have ever seen at this time of the season,” says Lust. “Availability is so scarce that the sorghum crop being planted now is being marketed at the same time.” He says this sends a strong demand signal to U.S. sorghum producers from their international customers. ********************************************************************************************** NPPC’s In-Person World Pork Expo Set for June The World Pork Expo will be an in-person event scheduled for June in Iowa. The National Pork Producers Council says that all of the needed COVID-19 protocols will be followed, and they believe their members are getting vaccinated. The event is June 9-11 at the Iowa State Fairgrounds in Des Moines. “The decision didn’t come lightly,” says NPPC President Jen Sorenson. “It was very carefully considered.” The Hagstrom Report says Sorenson notes that everyone in the pork industry values the in-person expo because they get together to do business, network, and adopt the latest technologies. NPPC officials say they don’t have specific numbers on how many of their members are getting COVID vaccinations, but they don’t know of any members declining the vaccine. CEO Neil Dierks says he’s talked to multiple members who say they’ve had their first or second shots. He believes producers are getting the vaccine because vaccinations are “part of the industry culture.” The trade show will include social distancing and hand-washing stations. As far as required proof of vaccination, COVID tests, or temperature checks, officials say the expo will follow government recommendations at the time of the event. ********************************************************************************************** Produce Union Unhappy with USDA’s Cancellation of Food Box Program A trade group in the fruit and vegetable industry is unhappy with the USDA’s decision to cancel the Farmers to Families Food Box Distribution Program. United Fresh says millions of Americans gained access to healthy, fresh produce throughout the COVID-19 pandemic, calling the decision by Ag Secretary Tom Vilsack “shortsighted.” The group says comments disparaging the program were a slap in the face to the thousands of volunteers, non-profits, regional food distributors, and farmers who worked together in communities across the country to deliver healthy foods to people in their time of great need. “For a major new program put together rapidly in a time of crisis, the food box program certainly included challenges,” United Fresh says in a news release. “Yet, hundreds of community non-profits and nutrition advocates have found delivering fresh produce directly to those in need has great potential to truly make a difference in the health of millions of Americans.” The trade group says the sudden decision seems more like a political statement against a program started by a former administration than an objective evaluation of the program’s ability to improve Americans’ health. “USDA bears a tremendous responsibility to develop new programs to get fresh, healthy foods to people in need,” they say. *********************************************************************************************** USDA Looking to Halt Decline in Conservation Reserve Sign-Ups Ag Secretary Tom Vilsack says the USDA is only days away from announcing “greater opportunities” for landowners to take fragile farmland out of production in exchange for a payment. A Successful Farming article says the Biden Administration is looking for ways to halt a 13-year decline in the number of signups under the Conservation Reserve Program, the largest land set-aside program in the country. Vilsack recently told Illinois public radio that the CRP could play a role in President Biden’s plan to make American agriculture the first in the world to get to net-zero greenhouse gas emissions. Approximately 20.8 million acres are enrolled in the Conservation Reserve Program, with contracts on three million acres set to expire on September 30. While the 2018 Farm Bill calls for gradually raising the enrollment cap to 27 million acres, it lowered the annual rental rate to landowners to pay for those extra acres. Some senators had said last fall that the USDA was “being stingy” with the incentives and bonuses it had previously offered to encourage producer participation. *********************************************************************************************** USDA Announces 2021 Cotton Loan Rate Differential The USDA announced the 2021 crop loan rate differentials for upland and extra-long staple cotton, which are applied to the crop loan rate to determine the per-bale actual loan rate. The differentials, also referred to as loan rate premiums and discounts, get calculated based on market valuations of various cotton quality factors over the prior three years. The 2021 crop differential schedules get applied to 2021 crop loan rates of 52 cents per pound for the base grade of upland cotton and 95 cents per pound for extra-long-staple cotton. The 2018 Farm Bill stipulates that the loan rate for the base quality of upland cotton ranges between 45 and 52 cents per pound based on the simple average of the Adjusted World Price for the two marketing years immediately preceding the current marketing year. But the loan rate cannot be less than 98 percent of the preceding year’s loan. The loan rate provided to an individual cotton bale is based on the quality of each bale as determined by the USDA’s Ag Marketing Service classing measurements. The differentials are important to cotton producers because they’re used to derive the actual loan rate for each bale of cotton, above (premium) or below (discount) the average per pound loan rate, depending on the grade or quality of the cotton.
| Rural Advocate News | Monday April 19, 2021 |
Washington Insider: Currency Manipulation Concerns The New York Times reported late last week that the Treasury Department put Taiwan, Vietnam and Switzerland on notice over their currency practices -- but struck a more conciliatory tone than the previous administration and stopped short of actually labeling any of them as manipulators. The announcement came in the Treasury's first foreign exchange report under Secretary Janet Yellen. Treasury reports to Congress twice yearly in an effort to hold the U.S. trading partners accountable if they try to gain an unfair advantage in international commerce through currency manipulation. The U.S. requires "manipulators" to enter into negotiations with the U.S. and the International Monetary Fund to address the situation. The blemish is somewhat symbolic but can lead to tariffs or other retaliation if talks collapse. Both Switzerland and Vietnam were listed as "manipulators" last year and their removal on Friday means no country currently faces that designation. Still, Treasury said there were signs that Switzerland, Vietnam and Taiwan engaged in “improper practices,” "Treasury is working to address efforts by foreign economies to artificially manipulate their currency values that put American workers at an unfair disadvantage," Secretary Yellen said. Last week's decision is the latest attempt by the administration to deescalate tension with U.S. allies after four years of former President Donald Trump's confrontational approach to international economic diplomacy. It also steers the United States away from "the Trump fixation" on bilateral trade imbalances, taking "a more holistic view of trade relationships," the Times said. Treasury officials noted the extraordinary economic conditions brought on by the pandemic in the last year and said they were not trying to send mixed messages by suggesting manipulation was taking place but not labeling it as such. "This report adopts a more measured and analytical tone in evaluating U.S. trading partners' currency practices relative to the previous administration's approach of wielding the report as a political tool," said Eswar Prasad, the International Monetary Fund's former China chief. He said the Biden administration's report "comes to analytically balanced assessments of foreign exchange market intervention by U.S. trading partners." The Trump administration labeled Vietnam and Switzerland as manipulators in its final report in 2020, but the Biden administration said it found "insufficient evidence" to support the designation now. To receive the label, Treasury must conclude that a country manipulates the exchange rate between its currency and the dollar for "purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade." Treasury instead said it would continue "enhanced engagement" with Vietnam and Switzerland and begin similar talks with Taiwan, which includes urging the trading partners to address undervaluation of their currencies. There is no fixed duration for how long such talks can go without a resolution. Mark Sobel, the chairman of the Official Monetary and Financial Institutions Forum, said the Biden administration was wise to take a more nuanced approach. He noted that Switzerland faced unusual monetary policy and safe-haven challenges and that Vietnam's foreign exchange reserves had been low when it received the manipulator label last year. A government can suppress the value of its currency by selling it in foreign exchange markets and stockpiling dollars. Moreover, Taiwan, Thailand and South Korea have traditionally been even worse offenders than Switzerland and Vietnam, according to Sobel, although the United States has avoided calling them out for it. "I think the new Treasury team is more willing to recognize that the relative policy divergence between the U.S. and others is a significant factor in that," Sobel said. "I also think the Trump administration approach was much more belligerent as a general proposition." Taiwan was the 10th-largest U.S. trading partner in 2019, according to the Office of the United States Trade Representative. Vietnam was the 13th largest and Switzerland the 16th. While the United States has been deepening ties with Taiwan as part of its effort to confront China, the Biden administration is also calling for a major investment in America's semiconductor industry to reduce the nation's reliance on imports from Taiwan and other countries. The Treasury report said that Taiwan's central bank "continues to actively intervene in the foreign exchange market" and that "less formal exchange rate management practices" had prevented the Taiwanese dollar from fully reflecting macroeconomic fundamentals. Currency analysts say they have been expecting the Biden administration to put more pressure on Taiwan to change its foreign exchange practices for some time. The Council on Foreign Relations reported in 2019 that Taiwan was hiding $130 billion in reserves to mask its currency interventions and that the case for naming it a manipulator was stronger than the case for naming China. The Treasury Department did not label China a currency manipulator either, instead urging it to improve transparency over its foreign exchange practices. Treasury kept China, Japan, South Korea, Germany, Italy, India, Malaysia, Singapore and Thailand on its currency monitoring list, and added Ireland and Mexico. So, we will see. Currency manipulation is difficult to prove especially as volatile economic forces cause fluctuations in many situations. Still, relationships among currencies are extremely important and should be watched closely by government officials and investors alike as markets evolve, Washington Insider believes.
| Rural Advocate News | Monday April 19, 2021 |
Nigeria To Halt Foreign Currency For Sugar, Wheat Importers The Nigerian central bank said on social media Friday that the country will no longer provide foreign currency to importers of sugar and wheat as it tries to conserve dollar reserves. "Sugar and wheat to go into our FX restriction list. We must work together to produce these items in Nigeria rather than import them," the central bank said in a tweet, according to Reuters. The mention of the FX restriction list refers to an action in 2015 which they restricted foreign exchange access for 41 items that could be produced locally and they have added products to that list over time. However, they have altered the policy at times. They banned access to foreign exchange for dairy imports and ordered lenders to stop offering credit to milk importers in a bid to spur domestic production. However, they later lifted the foreign exchange restrictions for six firms to import milk after businesses complained. USDA export sales data shows that Nigeria has been either the second or third largest importer of U.S. wheat since the 2015-16 marketing year, taking in anywhere from 836,200 metric tons to 1.09 million metric tons. Through the week ended April 8, U.S. wheat export commitments to Nigeria total 1.39 mmt, with only 250,000 mt of that business yet to be shipped. For 2021-22, Nigeria has booked 168,000 mt of U.S. wheat.
| Rural Advocate News | Monday April 19, 2021 |
USTR Tai, Rep. Brady Deliver Two Diverging Trade Views Trade was in focus Thursday as U.S. Trade Representative Katherine Tai delivered remarks on trade to two different groups, and the ranking Republican on the House Ways and Means Committee Kevin Brady, R-Texas, also offered up his views on trade issues, with the two focusing on different areas. Tai spoke to the Center for American Progress and laid out a view that climate has to become a component in global trade policy. "For too long, the traditional trade community has resisted the view that trade policy is a legitimate tool in helping to solve the climate crisis," Tai remarked. "That dated line of thinking only perpetuates the chasm that exists between the lived experiences -- and expectations -- of real people on the one hand, and trade experts on the other." She said the U.S.-Mexico-Canada Agreement (USMCA) should serve as a template ahead even as she called it a "glaring omission" in the trade deal she helped move through Congress that it does not explicitly mention climate change. Meanwhile, Brady told the Center for Strategic and International Studies that the U.S. needs to get off the sidelines on trade, a reference to the Biden administration signaling they are not focused on negotiating new trade deals. "I believe the first step is to renew without delay Trade Promotion Authority (TPA), which for all practical purposes, has already expired. Every president of any party should have this important tool," Brady said. He chided the administration for not giving any indication of completing trade negotiations started under the Trump administration with the UK, Kenya and Japan. He also criticized the administration for as of yet not asking Congress to renew TPA, which officials like USDA's Vilsack have said is coming. The global minimum tax proposal floated by the Biden administration was also rejected by Brady. "There is a lot of concern on Capitol Hill that we will be party to negotiations that ultimately are a revenue grab on American companies, but more importantly would surrender America's tax base to our foreign global competitors," Brady said.
| Rural Advocate News | Monday April 19, 2021 |
Monday Watch List Markets Traders will be checking the latest weather forecasts to start off the new week and will pause at 8 a.m. CDT to see if USDA has an export sale announcement. USDA's weekly grain inspections report is due out at 10 a.m., followed by Crop Progress at 3 p.m. CDT. Weather Spring snow is in store Monday for the north-central Plains and portions of the western Midwest. Other crop areas will be mainly dry. The snow is an indicator of a strong cold wave which brings a freeze threat to the southern Plains and Midwest Tuesday. Freezing temperatures are threatening for winter wheat and emerged corn.
| Rural Advocate News | Friday April 16, 2021 |
U.S. Drought Monitor: Tale of Two Regions The U.S. Drought Monitor shows a tale of two regions—the East and the West. The Western U.S., in the latest Drought Monitor released Thursday, shows much of the region in drought categories, with several areas classified in extreme or exceptional drought, the two most severe categories. Comparatively, the Eastern U.S. is mostly drought-free from the Eastern seaboard to the Central Plains. Drawing a line from the eastern border of Texas to the North is where much of the trouble begins. Having missed out on rainfall, conditions continued to deteriorate in south-central Oklahoma and in North, South and West Texas. Meanwhile, much of the West remained dry. Where precipitation did fall, in the Pacific Northwest and the Northern Rockies, it either missed the drought-inflicted areas or wasn’t enough to overcome shortages. Decreases in water allocation and reduced or negligible forage are causing livestock producers to respond by culling and selling herds. Fire crews are also arriving in California earlier than normal. ************************************************************************************ KC Fed: Farm Lending Remains Muted in Early 2021 Farm loan demand remained muted at commercial banks in the first quarter of 2021. The Kansas City Federal Reserve Bank reports that a reduction in the volume of operating loans led to an overall decline in total non-real estate lending. Financing activity also declined more notably at banks with relatively large farm loan portfolios, while lending was more stable among small and mid-size lenders. The KC Fed says factors specific to the pandemic in 2020 likely contributed to the reduced lending activity as the year progressed. Substantial government aid through various programs in 2020 provided financial support. In addition, the Small Business Administration’s Paycheck Protection Program accounted for a sizable share of loans reported, and likely displaced a portion of typical financing needs. Despite some challenges for cattle producers, financial conditions in agriculture remain favorable. The outlook for 2021 remained significantly improved from recent years, but rising input costs could also weigh on profit margins in the months ahead. ************************************************************************************ Grilling Season Rally Progressing Higher than Normal This year’s grilling season rally is higher than normal, fueled by vaccine availability, stimulus checks and the opening of ballparks. Cattle market analyst Ed Czerwien writes in Cattle Business Weekly the daily spot Choice box beef cutout ended last week, April 9, at $272.17, which was $19.32 higher compared to the previous Friday. Last year it was $223.93 on the same Friday, which was $6.51 lower, after jumping higher during the panic retail buying amid the coronavirus pandemic last year. However, last year then skyrocketed much higher during the packing plant shutdowns, topping out at $475.00 in early May. Last week, sales totaled 6,865 loads sold for the week, 153 loads higher than the previous week. Exports were reported at 956 loads which was good, but 116 loads lower compared to the previous week and about 800 lower than two weeks ago, which is normal when prices skyrocket higher. ************************************************************************************ NCBA Endorses House Companion of HAULS Act The National Cattlemen’s Beef Association just endorsed the Haulers of Agriculture and Livestock Safety, or HAULS Act of 2021. Introduced in the House of Representatives by Tennessee Republican John Rose and Democrat Darren Soto of Florida, NCBA says the bipartisan bill would deliver much-needed flexibility for livestock haulers. The House bill introduced this week is a companion to a bill introduced in the Senate last month. NCBA President Jerry Bohn says of the legislation, “Livestock haulers don’t need more regulatory hoops to jump through – they need the freedom and flexibility to continue transporting animals safely and humanely.” Current hours-of-service rules allow for 11 hours of drive time, 14 hours of on-duty time, and then require ten consecutive hours of rest. However, when transporting livestock, there is a need for further flexibility beyond the current hours-of-service. The HAULS Act would add a 150 air-mile radius exemption under hours-of-service regulations to the backend of hauls for those transporting livestock or agricultural commodities. ************************************************************************************ USDA Extends Comment for Proposed Revisions to Conservation Practice Standards The Department of Agriculture’s Natural Resources Conservation Service recently extended the deadline for public comment on proposed revisions to 23 national conservation practice standards. The proposed revisions were published March 9 in the Federal Register with comments originally due April 8. Comments will now be due April 22. NRCS is encouraging agricultural producers, landowners, organizations, Tribes and others that use its conservation practices to comment on the revised conservation practice standards. The proposed revisions to 23 conservation practice standards are available on the Federal Register website. The 2018 farm bill required NRCS to review all 169 existing national conservation practices to seek opportunities to increase flexibility and incorporate new technologies to help the nation’s farmers and ranchers better protect natural resources. In 2020, 57 conservation practice standards were updated after public review and are available on nrcs.usda.gov. NRCS’s conservation practices offer guidelines for planning, installing, operating and maintaining conservation practices nationwide. ************************************************************************************ Fertilizer Institute Announces New Tools to Better Understand Crop Nutrition The Fertilizer Institute recently announced two new updates to crop nutrient use tools. The tools provide the industry with scientifically backed data to better track nutrient use and nutrient balances across the United States. Working together, the Nutrient Use Geographic Information System and the Soil Test Summary are an index of performance, both agronomic and environmental. The tools indicate how well a cropping system uses crop nutrients. The two platforms can help provide an estimate of nutrient deficiencies and nutrients susceptible to loss, providing the fertilizer industry and farmers with insight into improving nutrient use efficiency and nutrient balance. Corey Rosenbusch, TFI President and CEO, says data from the tools position the organization "to collaborate with partners and soil testing labs to aggregate and analyze this information for our members and stakeholders." Both NuGIS and the Soil Test Summary are collaborations between TFI, the Foundation for Agronomic Research, and Plant Nutrition Canada. You can access both tools online at www.tfi.org.
| Rural Advocate News | Friday April 16, 2021 |
Washington Insider: Slowing Climate Change a Challenge for Biden Foreign Policy The press is widely reporting this week that the Biden administration is working to make a splash about climate change in the coming days. For example, Bloomberg says John Kerry "has been flying around the world trying to get some of the biggest polluters to step up their fight against climate change in time for a White House Earth Day summit on April 22." The report indicates that the April goal could turn out to be a disappointment. Kerry, the president's climate envoy, has been meeting with diplomats to reestablish America as a leader on global climate action after four years of backtracking under former President Donald Trump, Bloomberg says. "That means setting an ambitious 2030 emissions-reduction target and then cajoling others to strengthen their goals." There may be a problem overcoming the world's mistrust, Bloomberg thinks, "since the U.S. reneged on its climate promises before." "They've clearly been looking to try to encourage other countries to increase their ambition, but I don't think this is the date," said Pete Ogden, who served in the Obama administration and is now vice president for energy, climate and the environment at the United Nations Foundation. "I do not expect that everything will be on a glide path to 1.5 (Celsius) degrees," he said. The Paris Agreement strives to keep global temperatures from rising more than 1.5 degrees Celsius from pre-industrial levels, the limit scientists say is needed to avoid the worst effects of global warming. To get there the world will have to zero out greenhouse gases emissions by 2050, a timeline that will only be achieved if countries step up their climate action significantly. In its efforts to build deals by Earth Day, the administration is reporting favorable results for some close allies, but building agreements with powers like China, Brazil and India is proving difficult. The New York Times says the administration is nearing agreements with Japan and Canada to bolster carbon emission reduction targets ahead of a closely watched summit of global leaders on Earth Day, April 22. It says that "in the latest sign of how difficult it will be for President Biden to make climate change a core part of his foreign policy, similar agreements are also needed with China, India and Brazil, economic powerhouses that together produce more than a third of global emissions, and which remain elusive." The cooperation of China, the world's largest emitter of climate-changing pollution, is vital to slowing global warming--but Beijing is also Washington's biggest rival on the world stage, the Times notes. With Brazil, the Biden administration's efforts to negotiate an Amazon rainforest protection plan with conservative president, Jair Bolsonaro, have bitterly divided environmental advocates, given the Bolsonaro administration's dismal environmental record. And in India, where Kerry recently wrapped up three days of negotiations that did not yield any specific promise to strengthen New Delhi's climate ambition, the administration must weigh its need for cooperation with its concerns over human rights, the Times says. Indian leaders, meantime, have been unsettled by pressure to deliver an announcement in time for the administration's summit after spending the past four years working with a U.S. administration that abandoned the rest of the world's efforts to tackle global warming. "Maybe there's a little bit of time lag that will go into building that trust and relationship back," said Aarti Khosla, director of Climate Trends, a climate change nonprofit based in New Delhi. The focal point of the Leaders' Summit on Climate will be the Biden administration's plan to cut American emissions by 2030, and how it can overcome fierce Republican opposition. The ambitions and practicality of that target could determine the Biden administration's success in convincing other nations to do more than they have already pledged. "Summitry is theater, and it can be extremely impactful if there is a big centerpiece," said Rachel Kyte, dean of the Fletcher School at Tufts University and a climate adviser for the United Nations Secretary General. "That centerpiece is the U.S. plan." Publicly, the Biden administration has tried to dampen expectations that other countries will make major announcements at the U.S. event. Behind the scenes, though, State Department diplomats have been hustling to prod allies into doing just that. Kerry, in a statement, declined to specifically address the likelihood of other countries joining the United States in big announcements, saying the summit "will be a chance for major economies and other countries to work together at the highest possible levels to address the climate crisis." U.S. progress toward new agreements with some industrialized countries in less than three months is a testament to the climate diplomacy that Kerry has conducted, the Times says. He has traveled to six countries and held what aides described as dozens of video conferences and calls each week since January. Yoshihide Suga, the prime minister of Japan, is expected to announce a new emissions target in the range of 50 percent below 2013 levels by 2030 in the near future. The United States and Japan also have been discussing new restrictions on coal financing, though an announcement on that remains unclear. A major South Korean news outlet, the Maeil Business Newspaper, reported this week that South Korean leaders were poised to announce an overseas coal financing moratorium. And Canada, which already has signed a strong bilateral agreement with the United States on climate change, has said it will announce stronger targets at the summit. So, we will see. Certainly, climate change agreements are a central part if the administration's goals and producers should watch the details of these efforts very closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday April 16, 2021 |
USDA's NASS Undertaking Major Review of Grain Stocks Report USDA's National Agricultural Statistics Service (NASS) is undertaking a “deep dive” on the policies and procedures the agency uses to prepare its Grain Stocks report, Lance Honig, head of the NASS crops branch, said during the first day of a virtual data users meeting. Sampling methods, questionnaires used to gather data and the processing of that information will be the focus. Findings of the review and recommendations are due by September 30, he noted. Honig acknowledged questions that have arisen over the Grain Stocks report in particular, where revisions to prior stocks figures have caused market reactions. Honig insisted that NASS has not altered its revision policy and said most of the adjustments on prior numbers were from late or updated reports from commercial grain storage firms. Honig told IHS Markit that the late reports are a combination typically of ones that come in after the deadline for the prior quarter or are corrected reports from the prior quarter and those can come into the agency at any time. Any changes recommended would not be put in place until after October 1, with any changes that are linked to manuals or training documents to be implemented immediately. He also pointed out during the data users meeting that that in the quarterly stocks data there is also an element of forecasting that takes place relative to imports, exports, food and industrial use, another factor that can produce revisions once final data in those areas for the quarter is available.
| Rural Advocate News | Friday April 16, 2021 |
Still More Questions Than Answers On Coming Ag Climate Efforts USDA Secretary Tom Vilsack fielded several questions on climate change and coming policy plans from the Biden administration relative to agriculture as he testified on the Fiscal Year (FY) 2022 budget plans for his agency. While the details of the major portion of the budget are yet to be released, Vilsack addressed questions on the proposed funding increase for USDA climate hubs. Rep. Jeff Fortenberry, R-Neb., raised comments by Microsoft co-founder Bill Gates that consumers in rich countries should be eating meat alternatives, something Fortenberry said would negatively impact his state and its cattle industry. Asked if he agreed with Gates' comments, Vilsack stated that he believes farmers are "great stewards" and that they will "embrace climate smart agriculture practices" and animal stewardship activities "and be able to allow us to message the ability and importance of animal protein production." He also said he did not favor barring certain technologies and expressed support for methane-reducing technologies and the ability to capture methane from cows could be important tools. There was little fresh information offered on the administration's plans for a carbon bank or how they intend to create climate programs for crop farmers.
| Rural Advocate News | Friday April 16, 2021 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, a report on U.S. housing starts for March will be released, followed by the University of Michigan's index of consumer sentiment at 9 a.m. Traders will keep a close watch on the latest weather forecasts as we head into the weekend. Any export sales news will also get attention as USDA has not had a U.S. corn sale announced in April yet. Weather Rain and snow are in store for most of the Plains Friday. Amounts will be light to moderate in the southern Plains and light in the northern Plains. Southern Plains crop areas will have favorable moisture, with no more than slight drought easing in the northern Plains. We'll also see light rain in the Delta and Deep South along with the Great Lakes. A notable cooling trend will spread farther south as well. Meanwhile, dry and very warm conditions will stress northwest crop areas.
| Rural Advocate News | Thursday April 15, 2021 |
USDA Cancels Farmers to Family Food Box Program Agriculture Secretary Tom Vilsack told House lawmakers Wednesday the Department of Agriculture is ending the Farmers to Families Food Box program. Representative David Valadao, a California Republican, stated, “although it wasn’t a perfect program, this program provided families with healthy, nutritious food items grown here in the U.S.,” asking Vilsack what USDA will do next. Vilsack says USDA will continue to provide healthy food, but doing so through the most efficient system USDA has. Vilsack responded, “A lot of problems with it, Representative, a lot of problems,” regarding the cancellation during a House Ag Appropriations Committee hearing. Vilsack told lawmakers USDA will take the best of the program, “and incorporate it into our traditional regular programs that are very efficient of food distribution.” USDA announced new pandemic aid programs Monday to help make up for the Farmers to Families Food Box program. The program purchased U.S. commodities and food for distribution to the public. ************************************************************************************ USDA Announces Further Pandemic Aid The Department of Agriculture this week announced the availability of more than $330 million as part of the Pandemic Assistance for Producers program. The funding includes $169.9 million for the Specialty Crop Block Grant Program, $75 million for Gus Schumacher Nutrition Incentive Program grantees and approximately $80 million in payments to domestic users of upland and extra-long staple cotton. The funding will aid in developing new markets for U.S. agricultural products, expand the specialty crop food sector, and the purchase of fruits and vegetables by low-income consumers. USDA also announced plans for the Dairy Donation Program as established in the Consolidated Appropriations Act of 2021. USDA launched the Pandemic Assistance for Producers initiative in March with $6.5 billion in available funding to address shortfalls and disparities in how assistance was distributed in previous COVID-19 assistance packages, with a specific focus on strengthening outreach to underserved producers and communities and small and medium agricultural operations. ************************************************************************************ NPPC Outlines Top Legislative Priorities Expanding market access to Vietnam, visa reform to address a livestock agriculture labor shortage, and foreign animal disease prevention are the focus of the National Pork Producers Council's Legislative Action Conference this week. Pork producers from across the country are gathering virtually to address these and other issues with lawmakers. NPPC President Jen Sorenson says, “Trade remains crucial to the continued success of the U.S. pork industry.” Domestic pork consumption in Vietnam is greater than 2.5 million metric tons per year, more than Mexico, where the United States exported 688,252 Metric tons, valued at $1.1 billion in 2020. Last year, U.S. pork producers only exported 25,183 metric tons to Vietnam, valued at $54 million. Additionally, NPPC says current visa programs fail to meet the workforce needs of pork producers and other year-round livestock farmers. NPPC is urging Congress to address labor reform that both opens the H-2A visa program to year-round labor, without a cap, and provides legal status for agricultural workers already in the country. ************************************************************************************ Stabenow Introduces Rural Forest Markets Act Senate Agriculture Committee Chair Debbie Stabenow Wednesday introduced the bipartisan Rural Forest Markets Act. The Michigan Democrat, joined by Senate Republican Mike Braun of Indiana, introduced the bill to remove barriers for small-scale, family foresters and help them benefit from new economic opportunities through climate solutions like carbon markets. The bill is the latest bipartisan climate-smart forestry legislation to come out of the committee after the REPLANT Act was introduced last month. Stabenow says, “For too long, there have been barriers that prevent family foresters from being able to take advantage of the economic benefits of the carbon reduction efforts they’ve been doing.” As companies increasingly express interest in offsetting their footprint through carbon and other environmental markets, foresters are tapping into those opportunities and being financially rewarded for the voluntary, sustainable steps they’re taking in managing their land. The legislation provides a federal loan guarantee to support projects that help small forest owners address climate and other environmental challenges by adopting sustainable land management practices. ************************************************************************************ USAID Launchers Effort to Combat Infectious Disease threat, Antimicrobial Resistance The United States Agency for International Development has tapped a consortium led by Cargill to improve livestock management and combat the threat of diseases to both human and animal health. The five-year, $33 million Transformational Strategies for Farm Output Risk Mitigation consortium will harness innovation to sustainably improve animal health, strengthen animal agriculture production systems in Asia and Africa and enhance global health security. As a farm-based initiative, the effort will prioritize efforts to decrease the risks of antimicrobial resistance, diseases spread from animals to humans such as foodborne pathogens, anthrax and Avian and swine influenza. The group will also consider transboundary animal diseases, such as foot-and-mouth disease and African swine fever. Scientists estimate that more than three out of five known infectious diseases in people can be spread from animals. The effort seeks to increase the capacity of government, agribusinesses, and farmers to prevent and, if needed, identify, and quickly respond to these threats to human health. ************************************************************************************ USDA NIFA Invest $14 million in Ag Workforce Training The Department of Agriculture’s National Institute of Food and Agriculture recently announced more than $14 million in workforce training grants. USDA NIFA has awarded $9.4 million in funding for 19 Agricultural Workforce Training grants, and 12 awards totaling $4.8 million for rural economic development projects. The grants are part of NIFA’s Agriculture and Food Research Initiative. The Agricultural Workforce training grants will provide community, technical or junior college students the skills and tools necessary to secure industry-accepted credentials to join the workforce. NIFA Director Dr. Carrie Castille says, “These awards will help students earn a two-year degree or an industry-accepted credential that will create better job opportunities and fuel the talent pipeline needed in the food and agricultural sector.” NIFA invests in and advances agricultural research, education, and extension across the nation to make transformative discoveries that solve societal challenges, and supports initiatives that ensure the long-term viability of agriculture.
| Rural Advocate News | Thursday April 15, 2021 |
Washington Insider: Recent Past Not Much Guide to Inflation The New York Times is reporting this week that keeping track of inflationary pressures is hard, and that it is important not to be fooled by reported numbers -- which are mainly backward-looking -- and "not necessarily a sign of what's ahead." For example, the Times says we could be on the "verge of a golden era for inflation nonsense," and it suggests that its start date may well turn out to have been Tuesday morning, when new data on consumer prices were released. Still, the concern is important and the Times says that the potential for misunderstanding derives from several forces crashing against one another at once. It expects that there are sure to be shortages of some goods and services as the economy creaks back to life. There are growing, valid concerns for investors and policy makers since the trillions of dollars of government stimulus dollars "could push the economy beyond its limits and create a broad-based overheating." But to be a savvy consumer of economic data, it's important to separate those potential forces from the inflation data coming right now, the article says. It believes this "tells us more about the past than the future." Don't take the backward-looking information in the new report as proof that those inflation warnings are coming true. The Consumer Price Index in March reflected a 12-month increase of 2.6%, which on its face would appear to be an uncomfortably high rate of inflation. That said, the Times notes that it had been higher than that for several 12-month periods ending in mid-2018. But March 2020 was not a normal month. The pandemic shut down huge parts of the economy virtually overnight. It would be hard for that kind of experience not to create distortions in economic data. NYT says the term for this is "base effects" and that it is the "misleading results" that can show up in year-over-year numbers when something weird happened 12 months ago. To get a better sense of true inflation trends, it helps to look at percent change in prices since February 2020, adjusted to reflect an annual rate instead of a 13-month rate. Using that measure, "we see a considerably more nuanced picture." Overall consumer price inflation is running at 2.2% -- very close to the 2% that the Federal Reserve aims for, especially considering that the CPI runs a few tenths of a percent higher than the inflation index preferred by the Fed. In the guts of the new numbers, we see how the recovery "creates distinct inflation dynamics in different parts of the economy." For example, gasoline prices are up an annualized 12.3% since February 2020 -- maybe not as dramatic as the 22.5% year-over-year price rise reported in March but still enough to suggest that people unhappy with prices at the pump have something to complain about. Specifically, in the early months of the pandemic, energy demand collapsed and drillers of oil and natural gas pulled back on exploration accordingly. Demand for gasoline, jet fuel and other petroleum products is finally rising but energy producers can't flip a switch and produce enough fuel to meet that demand overnight and are doubtless scarred by their losses last spring. Similarly, grocery prices are up substantially: an annualized 3.8% rise since February 2020, led by a 5.9% rise in the price of meat, poultry, fish and eggs. If it feels as if proteins are more expensive than before the pandemic, "you're not imagining it," the Times says. Central bankers tend to look past swings in energy and food prices which tend to fluctuate in ways that don't portend inflation across the economy. But some elements of "core" inflation are also showing odd inflation dynamics, even when corrected for base effects. Used cars and trucks, for example, are up an annualized 11% since February 2020, most likely because many people sought a way to get around besides public transport. The flip side of that is that airfares are still far below its pre-pandemic levels, down an adjusted 23.9% from February 2020. There is plenty of reason to expect that airplanes will be crowded this summer, especially on routes to leisure destinations, as a newly vaccinated population looks to stretch its wings. But prices still have not caught up to their pre-pandemic norm. Oh, and clothing is still cheaper than pre-pandemic levels as well, with a 2.7% adjusted fall in apparel prices since February 2020. The Times sees a lesson in the sharp divergences in these sectors and that it shows the importance of looking at economic data more deeply than usual in the coming months. Many of the sectors with the most extreme price effects from the pandemic bottomed out in April or May, not March -- meaning the distortions in year-over-year numbers could get even bigger over the next few months. But beyond that, with so many parts of the economy going through wrenching change, headline numbers on inflation or anything else will mean less than usual in the coming months. The Biden administration and the Federal Reserve are betting on a one-time reset, with temporary price spikes followed by a steadying of both inflation and growth in 2022. If something more pernicious arrives, it won't show up as a few weird data points in 2021, but as a broad-based surge in prices across the economy that becomes a cycle of rising prices. So, we will see. The Times warns that to understand an economy in uncharted territory, the details matter more than the headlines. This is probably good advice that should be heeded by producers as they continue to evaluate future trends, Washington Insider believes.
| Rural Advocate News | Thursday April 15, 2021 |
USDA Details Help For Cotton USDA will provide approximately $80 million in additional payments to domestic users of upland and extra-long staple cotton to support textile mills impacted by the pandemic under a one-time payment program -- the Pandemic Assistance for Cotton Users (PACU) program. The payment rate will be $0.06 per pound to domestic users based on a 3-year monthly average during 2017 through 2019, covering 10 months in 2020. The program and payment formula were established by the Consolidated Appropriations Act, 2021. USDA will use consumption information previously submitted to USDA's Agricultural Marketing Service (AMS) by domestic cotton users as participants of the Economic Adjustment Assistance for Textile Mills (EAATM) and Special Competitive Provisions for Extra Long Staple Cotton (ELS) to determine payments. The payments could start to go to domestic cotton users in mid- to late-April.
| Rural Advocate News | Thursday April 15, 2021 |
USDA Announces Dairy Donation Effort to Start Soon Implementation of the Dairy Donation Program (DDP) as established in the Consolidated Appropriations Act 2021 to "facilitate the timely donation of dairy products to nonprofit organizations that distribute food to persons in need and prevent and minimize food waste" will be coming soon, USDA said Tuesday. USDA has provided an advance notice of minimum provisions to be included in the program to encourage the dairy industry to process and donate surplus milk supplies as it moves through the spring surplus milk production season. While noting the regulations for the effort have not been published in the Federal Register, USDA laid out minimum requirements for the program that was included in law. Those minimum requirements include: 1) a donation and distribution plan must be submitted and approved by USDA; 2) the reimbursement will be at least equivalent to the minimum classified value of milk used to make the donated product on the date of manufacturing; 3) records related to donating and receiving products must be maintained and available for review and/or audit; 4) eligibility is open to dairy farmer cooperatives and processors who "account to" a Federal milk marketing order (FMMO) and donate dairy products to any private or public nonprofit food distribution entity. The regulations for the dairy effort have also not been sent forward from USDA to the Office of Management and Budget (OMB) for the usual interagency review.
| Rural Advocate News | Thursday April 15, 2021 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. jobless claims, U.S. retail sales for March and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CDT. The Fed's report on March industrial production is set for 8:15 a.m., followed by the Energy Department's weekly report of natural gas inventory at 9:30 a.m. USDA monthly outlook for Livestock, Dairy and Poultry is due out at 11 a.m., roughly the same time the National Oilseeds Processors Association will have an estimate of soybean crush for March. Weather Thursday features a spring snowstorm in portions of the western High Plains and light to moderate rain in the southwestern Plains through western and southern Texas. Rain is also in store for the Gulf Coast and the Great Lakes. Other crop areas will be dry. Much cooler air will spread throughout the central and eastern U.S. through the end of the week, slowing field work and crop progress.
| Rural Advocate News | Wednesday April 14, 2021 |
Ag Coalition Calls Infrastructure Proposal a Good Start The Rebuild Rural Coalition calls President Joe Biden's Infrastructure plan a good starting point for discussions with Congress. The group of more than 260 organizations representing rural communities and agriculture says in a statement, "We strongly encourage a bipartisan approach that considers the unique needs of rural infrastructure – and sets aside specific funding for rural communities." In a January letter, the coalition outlined the needs of rural America, while highlighting U.S. agriculture's ability to produce and efficiently transport products across the globe, adding, "Our deteriorating infrastructure threatens that leadership position." Beyond transportation, the coalition says other needs of rural America include locks and dams, railroads, electrical and water systems, agriculture research, broadband and healthcare and housing. The coalition says, "We hope Congress will work together to find bipartisan solutions that benefit all of America, including our rural communities.” The coalition is comprised of national agriculture and rural business groups and state Farm Bureau’s, commodity organizations, among others. ************************************************************************************ Growth Energy, RFA, and NCGA Defend Year-Round E15 in Court Corn and biofuels groups made their arguments Tuesday in a court case for year-round E15. Growth Energy, the Renewable Fuels Association and the National Corn Growers gave oral arguments in American Fuel and Petrochemical Manufacturers vs. EPA to the D.C. Circuit Court. Oil refiners are challenging the Environmental Protection Agency’s 2019 rulemaking that paved the way for the year-round sale of E15. In a joint statement, Growth Energy, RFA, and NCGA said, "Oil refiners are simply trying to reclaim more market share by blocking American drivers from year-round access” to E15. In June 2019, EPA issued its final rule extending the Reid Vapor Pressure volatility waiver to E15, and found that E15 is substantially similar to E10 certification fuel, allowing its introduction into commerce by fuel manufacturers without the need for a separate E15 waiver. The action allowed for the sale of E15 fuels year-round. Oil refiners are now challenging the rulemaking in an attempt to “undermine the expansion of biofuels in our nation’s fuel supply.” ************************************************************************************ Fertilizer Costs Shape Crop Production Expenses The Department of Agriculture’s Economic Research Service reports production costs for corn and other major commodities are shaped by fertilizer cost. From 2010 to 2019, fertilizer was a major expense in U.S. corn production, accounting for 33 to 44 percent of operating costs-a category that includes other variable expenses like seed, chemicals, fuel, and repairs. Fertilizer also comprised 16 to 24 percent of the average corn producer's total costs, which include overhead charges like land costs, machinery depreciation and farm taxes. Most U.S. corn acres are planted in April and May, and growers often purchase their inputs months in advance. Prices for fertilizer have risen since August 2020, with an even more pronounced surge starting in January 2021. USDA says farmers who made fertilizer purchases for the 2021 corn crop before this uptick may incur similar fertilizer costs to the 2019 and 2020 crops, while those who have waited may pay significantly higher costs. ************************************************************************************ March Farm Tractor Sales Show Broad Growth, Close Positive First Quarter U.S. farm tractor unit sales extended their growth streak to eleven straight months. Canada also extended its own streak with a strong month of March, according to the latest data from the Association of Equipment Manufacturers. U.S. total farm tractor sales rose 84.1 percent in March compared to 2020. Meanwhile, U.S. combine sales grew 6.7 percent. For Canada, March monthly tractor and combine sales were positive across all segments. Total farm tractor sales were up 84.3 percent for March 2021. Combine sales in Canada were reported flat at 95 units sold. Curt Blades AEM, Senior Vice President of Ag Services, says, “It’s not just the length of time of this growth streak, but the size of growth that makes me feel optimistic this will continue past the 12-month mark.” A recent survey by AEM found increased customer demand has manufacturers optimistic sales will increase or remain stable, despite COVID-19 and workforce challenges in 2021. ************************************************************************************ Farmers National Company Reports Booming Land Sales The dollar volume of land sales listed and sold by Farmers National Company during the first six months of its fiscal year ending March 31 was up 56 percent over the same period last year. Farmers National Company reports sales are up 67 percent over the average of the past three years. Total acres sold to date are up 59 percent compared to last year and 26 percent over two years ago. The number of sales transactions handled saw an increase of ten percent over last year. The increase in land sales activity at Farmers National Company contrasts with what has generally been described as a slower land market that has had a steady to somewhat less amount of land for sale in most areas. While the number of auctions held by Farmers National Company during the past six months was only down two from last year, the number of private treaty land sales was up 48 percent. ************************************************************************************ FCC Looks to Consumers to Find Broadband Gaps The Federal Communications Commission wants consumers to test broadband speeds to help find broadband gaps. As part of the Commission’s Broadband Data Collection effort, the FCC is encouraging the public to download the FCC’s Speed Test app, which is currently used to collect speed test data as part of the FCC’s Measuring Broadband America program. The app provides a way for consumers to test the performance of their mobile and in-home broadband networks. In addition to showing network performance test results to the user, the app provides the test results to the FCC while protecting the privacy and confidentiality of program volunteers. The network coverage and performance information gathered from the Speed Test data will help inform the FCC’s efforts to collect more accurate and granular broadband deployment data. More information about the app is available on the FCC website. The FCC Speed Test App is available in the Google Play Store for Android devices, and in the Apple App Store for iOS devices.
| Rural Advocate News | Wednesday April 14, 2021 |
Washington Insider: Ambitious Infrastructure Efforts The Biden administration is continuing to assert that both the size and scope of its $2.25 trillion jobs plan -- as well as how to pay for it -- are up for negotiation, “setting the stage for what is likely to be months of congressional wrangling on one of the White House's chief legislative priorities,” the Washington Post reported. The paper says that a top GOP senator told President Biden on Monday that it would be "almost impossible" to win over Republicans if the plan envisions boosting the corporate tax rate, as it currently does. There is also widespread private skepticism among congressional Republicans that the White House is genuinely open to a cross-party agreement that might significantly scale back Biden's ambitions. But the president, as well as White House officials, insisted that his overtures at bipartisanship were earnest and that he would not have been spending hours meeting with Republicans otherwise. Monday's session, which a White House official said was the first of several the president Biden will host this month, marked the informal beginning of months of arm-twisting and vote haggling on Capitol Hill to line up support behind the administration's American Jobs Plan, a proposal that stretches beyond the traditional definitions of infrastructure. The plan forms the cornerstone of Biden's economic agenda and includes Democratic priorities that the White House hopes to enact before the 2022 midterms. Despite the president's stated appetite for bipartisanship, the infrastructure bill has received little interest from Republicans so far, particularly with Biden's proposal to finance it by raising taxes on corporations from the current 21% to 28%. Under former president Donald Trump, Republicans passed a bill cutting the corporate taxes from the then-rate of 35% to 21%, and few are willing to consider reversing that, even in part. "I view the 2017 tax bill as one of my signature achievements in my entire career," Sen. Roger Wicker, R-Miss, said. "It would be an almost impossible sell for the president to come to a bipartisan agreement that included the undoing of that signature." Biden gathered lawmakers including Sen. Maria Cantwell, D-Wash., who chairs the Senate Commerce Committee and Wicker, her GOP counterpart. The panel plays a critical role in congressional debates on railroads and broadband Internet access, major elements of the Biden infrastructure plan. Reps. Garret Graves, R-La., and Donald Payne Jr. D-N.J. who also took part in the meeting, belong to a panel of House lawmakers considering legislation to fund and improve the nation's highways while implementing new programs to reduce carbon emissions. Other attendees at the meeting included Sen. Alex Padilla, D-Calif., Sen. Deb Fischer, R-Neb., Rep. David Price, D-N.C., and Rep. Don Young, R-Alaska. Young is the currently the longest-serving member of the House, and Biden affectionately dubbed him the "dean." "The president made a compelling case for acting big and broadly when it comes to the definition of infrastructure," Padilla said. The freshman senator, who assumed Kamala Harris's Senate seat when she was elevated to the vice presidency, said Biden's message was that simply catching up on deferred maintenance on roads and bridges would be a significant lost opportunity. Padilla also made a case that the administration could consider not paying for parts of the infrastructure and jobs plan -- echoing the view of some other Democrats -- although other attendees and people briefed on the meeting said Biden didn't appear too keen on deficit financing. The president also opposed raising gasoline taxes to finance parts of the plan, the White House later confirmed, despite suggestions from some Republicans that he consider doing so. Speaking with reporters after the session, Payne said Republicans raised many issues "with parts of the bill," including the size of the package, its policy scope and the White House's preferred means of paying for it. "The president was much more flexible than I was," Payne added. "I believe that the American Jobs Plan is a once-in-a-lifetime generational opportunity for us to modernize our airports, our roadways, our rail stations and our water infrastructure, and it's long overdue." Wicker confirmed that he and other Republicans wanted to stick with what they have described as traditional infrastructure--such as ports, rails and roads. Young agreed that lawmakers have to be cognizant about the "very definition of infrastructure." He added that he told Biden the White House should reconsider implementing an increase in the gasoline tax. The president has insisted that his outreach to Republicans is genuine, given the broad political appeal of addressing the country's infrastructure needs. But the administration has also signaled that if negotiations drag on, Democrats may decide to act on their own, as they did in approving a $1.9 trillion coronavirus relief package in March. So, we will see. The administration's proposals appear to have considerable support, although there are major differences among key lawmakers. Certainly, these proposals are high stakes and should be watched closely as the debates continue, Washington Insider believes.
| Rural Advocate News | Wednesday April 14, 2021 |
USDA Requests Comments On Extending Information Collection For Meat, Egg Product Recalls USDA's Food Safety and Inspection Service (FSIS) is requesting comments by June 14 on renewing its authority to collect information on voluntary recalls of meat, poultry, and egg products. FSIS can request firms recall meat, poultry, or egg products that have been imported or produced and are adulterated or misbranded. When making such requests, FSIS asks the recalling firm to provide basic information such as the “identity of the recalled product, the reason for the recall, and information about the distributors and retail consignees to whom the product was shipped.” Companies are required to keep this information under the Federal Meat Inspection Act, the Poultry Products Inspection Act, and the Egg Products Inspection Act. FSIS said it has not changed its estimates on the burden of the data collection effort. The current authority to collect the information expires September 30, 2021. The request is non-controversial and the full expectation is the agency will put the extension in place before the current authority expires.
| Rural Advocate News | Wednesday April 14, 2021 |
USDA Sets April 30 Deadline For Processing QLA Applications The deadline for the Quality Loss Assistance (QLA) program was April 9, though producers in many areas across the country were unable to complete the process before that date. USDA's Farm Service Agency (FSA) has set a deadline of April 30 for QLA applications on a register to be finalized and for producers to submit all their supporting documentation. County FSA offices are currently undertaking Phase I reviews of the QLA applications (determine if information provided is reasonable and adjust applications as necessary). Those Phase I reviews are to be completed by May 14. USDA at the end of March set a deadline of April 16 for all Wildfire and Hurricane Indemnity Program Plus (WHIP-Plus) applications to be finalized and approved for payment. Plus, FSA said it would work with the Risk Management Agency (RMA) to determine if WHIP, WHIP-Plus and QLA applicants have met the requirements for the purchase of crop insurance or Noninsured Assistance Program (NAP) coverage as a condition of receiving their payment.
| Rural Advocate News | Wednesday April 14, 2021 |
Wednesday Watch List Markets USDA has yet to announce a corn export sale in April and traders will be watching for one early Wednesday. The latest weather forecasts will also get attention. The U.S. Energy Department will have its weekly inventory report at 9:30 a.m. CDT, including last week's ethanol production. At 1 p.m. CDT, the Federal Reserve's Beige Book will describe recent economic activity. Weather Moderate to heavy rain is in store for the Delta and Deep South Wednesday, slowing field work and planting. Dry conditions will cover most other crop areas. A cold pattern with some freeze threat is spreading over northern and central areas and will hinder field work and early crop growth.
| Rural Advocate News | Tuesday April 13, 2021 |
CoBank: U.S. Economy Gaining Momentum The U.S. economy continues to outperform expectations as stimulus funds are fueling robust consumer spending. Forecasts point to seven percent GDP growth for 2021, the fastest rate of expansion since 1984, according to CoBank. The transition to a less COVID-restricted world has begun. But for the economy and rural industries, CoBank says there will be no going back to pre-COVID conditions. Researchers say the focus in Washington is shifting from crisis management to building for the future, and the outcomes will reshape rural economies. Meanwhile, CoBank reports the cyclical turn in grain pricing continued during the first quarter of 2021 and has picked up further gains ahead of spring planting. Farm supply retailers are positioned to benefit from an exceptionally strong spring agronomy season, outpacing fall and spring 2020. The U.S. fuel ethanol sector has recovered, with production running near 90 percent of pre-COVID levels. And chicken, beef and pork all see strong demand and profitability. However, dairy exports are struggling, mainly due to shipping-related issues. ************************************************************************************ Farm Credit System Reviews Current Ag Economy Record agricultural exports are contributing to favorable economic conditions for the U.S. farm sector. Exports to China have risen to record levels, with increases in soybeans, corn, wheat, and cotton. High crop prices and strong producer margins are expected to bring more acreage into production, but continuing drought in much of the western United States is a concern. The Farm Credit Administration says farm sector income is expected to remain above average in 2021. Stronger market prices and receipts are expected to mostly offset the decline in government payments. Strong farmland values, especially in the Midwest, reflect current income prospects, increased interest from both farmers and investors, and low interest rates. The data was presented to the Farm Credit System last week. Despite the pandemic's shock to the U.S. economy and agriculture, the system remained safe and financially sound in 2020. The system reported strong results for the year, including robust loan growth driven by real estate lending, higher earnings, and increased capital. ************************************************************************************ Brazil Lowering Biodiesel Blend from B13 to B10 Brazil last week announced it will lower the percentage of vegetable oil blended into petroleum diesel. Brazil will reduce the blend from 13 percent, or B13, to ten percent, or B10. Brazil's government claims the change is the result of the high cost of biodiesel, citing the elevated price of domestic soybeans and soybean oil. Michael Cordonnier of Soybean and Corn Advisor Inc. writes, “The industry feels this will throw the biodiesel sector into disarray because they had already made the investments needed to increase the blend percentage to 15 percent by the year 2023, which was the stated goal of the government.” Biofuel proponents in Brazil criticized the action and asked it to be rescinded. Industry experts in Brazil estimate the announcement will reduce the use of soybean oil by 650,000 tons per year, and soybean crushing would decline by 3.25 million tons per year. Brazil has previously lowered biodiesel blends citing an insufficient supply of soybeans. ************************************************************************************ Average Hurricane Season to Feature More Storms The average hurricane season will feature more predicted storms, according to the National Oceanic and Atmospheric Administration. Beginning with this year’s hurricane season outlooks, NOAA’s Climate Prediction Center will use 1991-2020 as the new 30-year period of record. The updated averages for the Atlantic hurricane season have increased with 14 named storms and seven hurricanes. The average for major hurricanes, Category 3, 4 or 5, remains unchanged at three. The previous Atlantic storm averages, based on the period from 1981 to 2010, were 12 named storms, six hurricanes, and three major hurricanes. NOAA is updating the set of statistics used to determine when hurricane seasons are above-, near-, or below-average relative to the climate record. This update process occurs once every decade. The increase in the averages may be attributed to the overall improvement in observing platforms, including NOAA’s fleet of next-generation environmental satellites and continued hurricane reconnaissance. NOAA says it may also be due to the warming ocean and atmosphere, which are influenced by climate change. ************************************************************************************ Tyson Foods Unveils $425 Million Poultry Facility in Tennessee Tyson Foods last week opened the company’s new poultry complex in Humboldt, Tennessee. The $425 million project, which includes a processing plant, feed mill and hatchery, represents Tyson’s biggest investment in Tennessee. Several hundred workers have been hired so far and are being trained for the start of production later this month. The processing plant, which is expected to employ more than 1,500 people by 2023, will produce pre-packaged trays of fresh chicken for retail grocery stores nationwide beginning in late April. The payroll and payments to farmers from the new operation, along with the purchase of grain and utilities, is expected to generate an annual economic benefit to Tennessee of $150 million. The company’s Humboldt feed mill, which will supply feed for approximately 56 local poultry farmers, will employ 30 people and produce 14,000 tons of finished feed a week when production reaches full capacity. The Humboldt hatchery employs 30 workers and provides chicks for local poultry farmers who supply broiler chickens to Tyson. ************************************************************************************ Gas, Diesel Prices, Decline Slightly For the fourth straight week, the national average price of gasoline has dropped, declining 2.1 cents to $2.85 per gallon. The national average now stands 0.5 cents lower than a month ago and $1.02 per gallon higher than a year ago. The national average price of diesel has fallen 1.1 cents in the last week and stands at $3.07 per gallon. Gas Buddy’s Patrick De Haan says, “It has been a fairly tame last few weeks at the pump for most areas after a particularly active February and March when prices were screaming higher.” De Haan adds, for now, the risk of seeing the national average climb to $3 per gallon has been delayed by a recent surge in COVID-19 cases, limiting the upside to gasoline demand. However, as the outlook improves, we still have potential to see summer gas prices at their highest levels in years. U.S. gasoline demand fell for the first time in seven weeks after a healthy Easter travel holiday boosted demand, down just shy of one percent.
| Rural Advocate News | Tuesday April 13, 2021 |
Washington Insider: Battle Over Administration Proposals Congress returns this week and the House and Senate Leadership are moving forward to begin to enact the President's long-term economic strategies built around massive infrastructure and manufacturing investments, Bloomberg is reporting this week. After first enacting a $1.9 trillion COVID-19 recovery plan without Republican support, the Biden administration says it continues to hope to strike deals with the GOP in order to advance a multi-part plan that could total more than $3 trillion. Senate Majority Leader Chuck Schumer, D-N.Y., also is pushing for action this spring and summer on President Joe Biden's noneconomic domestic priorities that the House has already passed, including ambitious changes to federal laws on voting, civil rights, health care, and gun ownership rules -- among others. In the House, Speaker Nancy Pelosi, D-Calif., is planning votes on legislation on worker protections and immigration. At the same time, Democrats say they are weighing different strategies to push the president's agenda, including use of budget rules to enact bills with simple majorities -- and possibly upending the long-standing Senate filibuster rule that requires 60 votes to pass most bills. But bipartisan deals still could be in the offing, as Biden seeks at least 10 Republicans to join Democrats in the evenly split 50-50 Senate, Bloomberg thinks. President Biden says he wants to boost the American economy and facilitate competition with China using his $2.25 trillion infrastructure and public works package. The investments included would include a “wide variety of projects,” from traditional spending on roads and bridges, to funds aimed at improving care for the elderly and people with disabilities. However, Bloomberg thinks that GOP opposition could drive Democrats to turn to budget reconciliation once again to sidestep a potential filibuster, which would require a supermajority of 60 senators to break. The plan includes about $620 billion for transportation and resilience; $580 billion for workforce development, research, and manufacturing; $400 billion for elder and disability care; and $650 billion for initiatives aimed at better quality of life at home, including lead-free pipes, broadband, and housing. The President is intensifying his links both Republican and Democratic members of Congress through numerous meetings on political support for a broad range of proposals. In addition, a consortium of chief executive officers and other leaders of major U.S. corporations held an hour-long Zoom call on Saturday to discuss ways to push for greater voting access amid new restrictions enacted or pending in Georgia, Texas and other states. Among the options being considered are re-evaluations of donations to candidates supporting restrictions on voter access and reconsidering investments in states that act upon such proposals, according to the non-profit Coalition for Inclusive Capitalism, which co-hosted the meeting with Jeffrey Sonnenfeld, a Yale School of Management professor, and the Leadership Now Project. In addition, tensions within Biden's Democratic leadership have intensified, Bloomberg says. For example, leading progressives like Rep. Alexandria Ocasio-Cortez, D-N.Y., had a choice after they won election in 2018 and expanded their ranks in 2020: challenge Democratic leaders from the sidelines, or “get in the game.” Now Bloomberg says their decision to play by Congress' rules is giving them enhanced clout in a government under unified control of the new administration. The report notes that members of Ocasio-Cortez's so-called Squad are taking leadership roles in the House and building experience on Capitol Hill, turning them into not just ideological purists but also strategic legislators working toward more liberal dreams like a $15 federal minimum wage and a permanent child tax credit within reach. In the meantime, President Biden created a 36-member bipartisan commission to study potential changes to the U.S. Supreme Court, fulfilling a promise he made on the campaign trail. The Presidential Commission will look at “the contemporary public debate for and against Supreme Court reform,” the White House said on Friday. The departments of Agriculture, Transportation, Education, Health and Human Services, Homeland Security, Justice, and the Environmental Protection Agency would all get budget hikes under Biden's $1.5 trillion discretionary spending request to Congress on Friday. The administration says it intends to make racial equity one of its top priorities and said it will have officials embedded across all federal agencies. Federal Reserve Chair Jerome Powell reported last week that the U.S. economy was at an “inflection point” with stronger growth and hiring ahead thanks to rising vaccinations and powerful policy support -- but that COVID-19 remains a threat. “We feel like we're at a place where the economy is about to start growing much more quickly and job creation coming in much more quickly,” Powell told CBS on Wednesday. Reports indicate that highlights a trend in which vaccination requirements are fast becoming facts of life in the U.S. as additional universities and many other institutions implement new requirements. It notes that Brown, Notre Dame, and Rutgers are among universities warning students and staff they'll need shots in order to return to campus this fall. Some sports teams are demanding proof of vaccination or a negative test from fans as arenas reopen. A Houston hospital chain recently ordered its 26,000 employees to get vaccinated; moves that imply new controversies for the future. So, we will see. These are trends producers should watch closely as highly controversial debates continue to emerge -- and as anti-COVID efforts intensify, Washington Insider believes.
| Rural Advocate News | Tuesday April 13, 2021 |
US-Mexico Potato Trade Situation Still Percolating With Postponement Of Action By Mexican Supreme Court The National Potato Council (NPC) said the Mexican Supreme Court's decision last week to postpone action on cases that would allow full importation of fresh U.S. potatoes appears rooted in political interference by the Mexico potato industry. NPC said the Mexican news outlet Reforma reported that CONPAPA, a group representing Mexico's potato producers, asked the president to direct the head of the Ministry of Agriculture to withdraw its appeal in the lawsuits, which would end the legal process. “Given that the cartel Wednesday morning requested that the government drop these cases, and immediately after the court again delayed their decision, it is reasonable to assume that the legal process in Mexico is impaired by politics,” NPC CEO Kam Quarles said. “Therefore, in order to enforce our rights, it appears the USMCA [U.S.-Mexico-Canada Agreement] is the best option. Once we successfully prove our case there, it will allow the U.S. to attach retaliatory tariffs to Mexican agricultural products such as avocados until they provide the access we are due.” The matter is one of the early friction points between the U.S. and Mexico under USMCA, with NPC and lawmakers pushing for action on the situation from the Biden administration.
| Rural Advocate News | Tuesday April 13, 2021 |
Sen. Thune Expects CFAP, WHIP-Plus Payments 'Soon' Sen. John Thune, R-S.D., said last week that the next round of Coronavirus Food Assistance Program (CFAP) payments should be coming soon. Getting the payments restarted that were put on hold by USDA Secretary Tom Vilsack is a “top priority” for him, Thune said. As for the Wildfire and Hurricane Indemnity Program Plus (WHIP-Plus), Thune noted that with the signup deadline April 9, that should mean payments will start to flow. Once the total cost is known, that will determine if more money will be added. He also said that when 2019-crop payments are finished, that's when they'll figure out if there will be a WHIP+ for 2020-crop.
| Rural Advocate News | Tuesday April 13, 2021 |
Tuesday Watch List Markets The U.S. Labor Department will release the consumer price index for March at 7:30 a.m. CDT, the only official report of the day. Traders will keep a close watch on the latest weather forecasts and on any export sales news that emerges. Weather Periods of snow will continue in the far northern Plains Tuesday. Moisture from the snow offers slight relief from extreme drought. We'll also see scattered rain showers in the western and southern Plains and southern Midwest which will disrupt spring field work. Temperatures are on a notable cooling trend throughout the central U.S. this week, slowing planting and crop development.
| Rural Advocate News | Monday April 12, 2021 |
February Red Meat Exports Trail 2020; Outlook Still Strong in 2021 U.S. beef and pork exports in February remained behind the rapid pace set in early 2020. However, USDA data compiled by the U.S. Meat Export Federation shows exports were consistent with USMEF’s February projections. The federation still expects 2021 beef exports to increase substantially year-over-year, while pork exports are projected should narrowly surpass the 2020 record. Beef exports totaled 103,493 metric tons in February, down eight percent from a year ago and valued at $669.5 million. Through February, beef exports trailed last year’s pace by five percent at 208,540 metric tons. Beef exports to South Korea are off to a strong start in 2021, and demand for U.S. beef continues to grow in China. February pork exports were down 12 percent compared to last year at 239,240 metric tons, valued at $629.4 million. Through February, pork exports were 11 percent lower than last year’s pace. Pork exports set new records in the Dominican Republic, Guatemala, El Salvador, and Costa Rica. February exports of U.S. lamb, helped by larger variety meat shipments to Mexico, Canada, and Hong Kong, increased 142 percent from last year to 1,152 metric tons, with the value up 19 percent to $1.6 million. ********************************************************************************************** International Trade Commission Hears Testimony on Cucumbers, Squash The U.S. International Trade Commission hosted an all-day virtual hearing last week on its investigation into unfair trade practices by foreign exporters on cucumber and squash imports. The Packer Dot Com says the ITC expects to send the results of its investigation to the U.S. Trade Representative’s Office no later than December 7 of this year. Florida Ag Commissioner Nikki Fried (Freed) testified at the hearing and talked about the injury to Florida’s $90.9 million cucumber and $35.4 million squash industries caused by imports. Since 2015, Fried says a surge in imports of fresh and chilled cucumbers and squash, predominantly from Mexico, has caused an estimated loss of 2,721 jobs, lost cash receipts worth $944 million, and $1.85 billion in a negative impact on Florida’s domestic produce growers. “I hope that you will employ all the tools at your disposal to provide equity and fairness for American farmers,” Fried says. Lace Jungmeier, President of the Fresh Produce Association of the Americas, says labor shortages, rather than damage from imports, are what’s hurting U.S. growers. He also says Mexico isn’t to blame because of severe weather that’s caused damage to Florida producers. ********************************************************************************************** Biden Budget Proposals Invest Money in Rural Communities The Biden Administration submitted the president’s budget priorities for discretionary spending during the fiscal year 2022. The funding request advances key USDA priorities like economic development and growth in rural America, supporting American agriculture, aiding in the approach to mitigating climate change, and supporting a strong safety net to address hunger and food insecurity. Ag Secretary Tom Vilsack says, “The President’s budget provides the resources to build back better, stronger, and more resilient and equitably than ever before.” The president’s discretionary request provides an increase of $65 million over the 2021 enacted level for the Rural e-Connectivity Program “Reconnect,” which provides grants and loans to deploy broadband in underserved areas. Biden’s request also provides $4 billion above the 2021 enacted level for USDA’s research, education, and outreach programs. The request also asks for almost $1.7 billion for high-priority hazardous fuels and forest resilience projects to combat the growing threat of wildfires. The 2022 discretionary request also provides $6.7 billion for critical nutrition programs like the Special Supplemental Nutrition Program for Women, Infants, And Children, or WIC (wick). ********************************************************************************************** April WASDE Shows Lower Corn and Higher Wheat Ending Stocks The April World Ag Supply and Demand Estimate report from USDA calls for lower corn and higher wheat stocks in the U.S. at the end of the marketing year. The outlook for wheat calls for lower supplies, reduced domestic use, unchanged exports, and higher ending stocks. Wheat supplies are lowered to 110 million bushels because of lower-than-expected imports, while feed and residual use were lowered by 25 million bushels. Projected ending stocks were raised to 852 million bushels but are still 17 percent lower than last year. The season-average farm price is unchanged at $5 per bushel. The corn outlook calls for greater feed and residual use, increased corn use for ethanol, larger exports, and lower ending stocks. Exports increased by 75 million bushels, based on the March export inspection data that hit the highest total set since November of 1989. The season-average farm price is unchanged at $4.30 a bushel. Supply and use changes for soybeans include higher exports, lower crush, residual use, and seed use. Soybean ending stocks are predicted to be 120 million bushels, unchanged from the previous forecast. The season-average soybean price is up 10 cents to $11.25 per bushel. *********************************************************************************************** Export Sales of Wheat, Soybeans Hit Marketing-Year Low Points The USDA says export sales of soybeans and wheat dropped to marketing-year lows in the seven days ending on April 1, while corn sales were down slightly during the same period. Soybean sales to overseas buyers in the 2020-2021 marketing year that ends on August 31 registered a net loss of 92,500 metric tons after a large cancellation occurred. Egypt was the biggest buyer at 66,200 metric tons, while Japan took in just shy of 41,000. China canceled shipments totaling more than 216,000 metric tons, resulting in a net loss for the week. Soybean sales for delivery in the next marketing year that starts on September 1 totaled 338,600 tons as China bought 264,000 tons from U.S. inventories. Wheat sales finished the week at 82,000 metric tons, also the lowest point of the marketing year. That’s 67 percent lower than the previous week and down 75 percent from the four-week average. Corn sales last week hit 757,000 metric tons, a five percent drop from the previous week and 54 percent lower than the prior four-week average. Japan was the top corn buyer by bringing in 285,300 metric tons. ********************************************************************************************** Consumers Feel Agriculture Can Positively Impact Climate Change American consumers feel agriculture can be part of the solution to climate change rather than the problem. A new Cargill Feed4Thought Survey says those who indicated climate change is important to them also rate livestock and agriculture lowest in negative impact compared to the other industries regarded as significant contributors. Over one-third of the respondents expressed confidence in the industry’s ability to limit its contributions to climate change. “Farmers are critical to feeding the world sustainably and responsibly,” says Ruth Kimmelshue, chief of Cargill’s animal nutrition and health business. “With a growing population and rising consumer interest in climate change, they are also part of the solution to address some of the toughest environmental challenges.” Survey responses came from consumers in the U.S., France, South Korea, and Brazil. Participants say transportation and deforestation were ranked as the greatest contributors to climate change. Fifty-nine percent of respondents say that federal and national governments bear the highest responsibility for addressing climate change. Fifty-seven percent said companies involved in beef production, and 50 percent say cattle farmers are responsible for reducing the impact of livestock. “Sustainability in our food systems starts with the dedication of farmers,” Cargill says in a news release.
| Rural Advocate News | Monday April 12, 2021 |
Washington Insider: Biden Administration's First Budget Request President Joe Biden's budget proposal on Friday kicked off what's likely to be a long, drawn-out fight in Congress over how to fund the federal government, the Hill said this weekend. The request calls for annual discretionary spending of $1.52 trillion. That includes a 15.7% increase in domestic spending and a 1.7% boost in defense. Although the plan contained no detail on taxes or mandatory spending programs, as well as the usual 10-year projection for spending and revenues, it nonetheless offers valuable insights into Biden's priorities, the Hill said. The proposal “affirmed” the administration's embrace of government spending and follows recent big proposals with a “subsequent measures focused on highly visible issues like child care and college tuition.” The request, up $118 billion from current levels, is 25% higher than discretionary spending was at the end of the Obama administration. The administration is making the argument that the pendulum has swung too far toward austerity over the years, resulting in a lack of resources that “exacerbated inequality, left the country's infrastructure in disrepair, created educational stagnation and allowed social ills to fester.” White House press secretary Jen Psaki noted that “we are inheriting a legacy of chronic underinvestment, in our view, in priorities that are vital to our long-term success and our ability to confront the challenges before us, so the president is focused on reversing this trend and reinvesting in the foundations of our strength.” The Hill said the proposal highlighted the fact that the defense budget is still a “sacred cow.” Budget watchers had expected Biden to keep defense spending flat – and progressives sought a 10% cut – but the proposal surprised both by calling for increases in Pentagon spending. It would add $12.3 billion to defense, a 1.7% increase, which in a typical year would just keep pace with inflation. At a total of $753 billion, it leaves in place significant increases to defense spending that former President Trump set in motion. But even the unexpected increase was not enough for some. A joint statement by top Republicans, including those on defense and budget committees in the Senate, characterized the 1.7% increase as a virtual cut and accused Biden of ceding ground to China and Russia – and sending a terrible signal not only to our adversaries in Beijing and Moscow, but also to our allies and partners.” In one important way, the administration's budget proposal matched the one Trump put out during his first months in office: it was more emaciated than skinny due to its limited details. Like Trump, Biden only released a very limited set of specifics and sidestepped questions about the long-term budget effects. The White House said a full proposal is due later this spring. Only then will it become clear how the administration intends to pay for the new spending, whether there is a plan to lower the deficit and how it intends to deal with mandatory programs. That spending, which includes programs like Social Security, Medicare, Medicaid and a slew of anti-poverty programs such as nutritional assistance, accounts for about two-thirds of annual government spending. They are far more significant drivers of spending and deficits than the discretionary side of the ledger this proposal covered. “We can't truly evaluate the president's agenda until we know how he'll address the other two-thirds of the budget and what he will do on the other side of the ledger with taxes,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “We hope the full budget plan will include policies to not only offset new spending, but secure the trust funds and improve the country's long-term fiscal path,” MacGuineas said. But even the focus on spending without discussion of taxes, deficits or the country's fiscal outlook is a reminder that the issue of debt may have lost some of its political sway over both politicians and voters. Whereas President Trump famously promised to put “America First” in his policy agenda, Biden's budget request of $63.5 billion for the State Department and international programs, a 12% increase over current levels, reflects his view that some of the biggest problems the country faces require global cooperation, The Hill said. He plans to quadruple the funding for international climate programs and is requesting a four-year commitment of $4 billion to stabilize Central America, home to many of the migrants arriving at the southern border. He also would boost the Centers for Disease Control and Prevention budget to $8.7 billion, from $7.9 billion, with a focus on international preparedness to help tackle future pandemics. The budget would fully fund U.S. commitments to United Nations peacekeeping, including payments missed under the Trump administration. International programs at the Treasury Department would get a 73% boost, just as Secretary Janet Yellen is calling for a summer agreement on a global minimum tax to clamp down on tax avoidance by multinational corporations. The Hill notes that while presidential budget requests shape the debate around annual spending, Congress usually has its own ideas--and that those matter most since lawmakers have the power of the purse. So, we will see. The new administration's proposal suggests that it intends to work for significant changes, shifts that producers should watch closely as the new and modified policies are debated and implemented, Washington Insider believes.
| Rural Advocate News | Monday April 12, 2021 |
Senate Approach To Counter China Is Taking Shape A bipartisan bill was introduced directing the U.S. government to adopt a policy of “strategic competition” with China to “protect and promote our vital interests and values.” The 283-page bill crafted by the Senate Foreign Relations Committee is part of a push by Majority Leader Chuck Schumer, D-N.Y., to vote this spring on a broad, bipartisan package designed to confront China's economic and geopolitical power. The measure seeks infrastructure investment and technology developments to compete with China on global supply chains, science and technology. Besides the legislation introduced yesterday, the centerpiece of Schumer's broader plan is the Endless Frontier Act, a bill to boost U.S. semiconductor development. The Senate Commerce Committee will hold a hearing on that proposal on April 14. The Foreign Relations panel is scheduled to act on its bill the same day.
| Rural Advocate News | Monday April 12, 2021 |
Manchin Won't Support Ending, Modifying Filibuster Democratic hopes that they could convince Sen. Joe Manchin, D-W.Va., to back modifying or ending the filibuster have again had their hopes dashed as the key senator last week again said he will not back such changes. "There is no circumstance in which I will vote to eliminate or weaken the filibuster," Manchin wrote in a Washington Post op-ed published Wednesday night. He described the stand as sticking up for small and rural states and said that only through compromise between Republicans and Democrats would the Washington paralysis end. The means Democrats and the Biden White House will have to compromise to get the 60 votes they need on must-pass bills not tied to reconciliation.
| Rural Advocate News | Monday April 12, 2021 |
Monday Watch List Markets Traders will start the new week poring over the latest weather forecasts and pause at 8 a.m. CDT to see if there are any new export sales announced. USDA's weekly grain inspections report is due out at 10 a.m., followed by a budget report for March from the U.S. Treasury at 1 p.m. USDA's Crop Progress report at 3 p.m. will have planting progress information and an update of winter wheat conditions. Weather Rain and snow are in store for the northern Plains and northern Midwest Monday, offering some easing of extreme drought conditions. Other crop areas will be mainly dry. Portions of the southern Plains and southern Midwest have light precipitation in store Monday evening.
| Rural Advocate News | Friday April 9, 2021 |
World Food Price Index Rises for Tenth-Straight Month World food prices rose for the tenth-consecutive month in March, rising to their highest level since June of 2014. Reuters says the climb got sparked by costs rising in the vegetable oils, meat, and dairy indices. The United Nations Food and Agriculture Organization’s food price index measures monthly changes for a basket of cereals, oilseeds, dairy products, meat, and sugar. The index averaged 118.5 points in March, compared to 116.1 in February. The FAO says worldwide cereal harvests are on course to hit an annual record in 2020, with early indications for 2021 pointing to another production increase. The vegetable oil price index jumped eight percent to its highest level since 2011. Dairy prices also climbed for the tenth straight month, rising almost four percent and driven by a surge of imports in Asia. The meat index rose 2.3 percent but was still slightly down on a year-to-year basis. Poultry and pig prices increased in part because of the fast pace of imports in Asian countries, mainly China. Sugar prices dropped four percent month on month but were still 30 percent higher during the year. The drop in March was driven by prospects of large sugar exports from India. ********************************************************************************************** Ethanol Production Hits Highest Point Since December Ethanol output jumped to its highest level in more than three months while inventories dropped again. The Energy Information Administration report says production rose to 975,000 barrels a day, on average, in the week ending on April 2. That production level rose from 965,000 barrels a day the week before and was the highest output level since the week that ended on December 18. The Midwest, by far the highest producing region in the U.S., saw production rise to an average of 929,000 barrels a day. Government data showed that was up from 917,000 barrels a day the previous week and was the largest output since mid-December of last year. East Coast production was unchanged at 12,000 barrels a day, and both the Rocky Mountain and West Coast output remained steady at 9,000 barrels a day. The Gulf Coast region was the only area that dropped production, falling to 16,000 barrels a day from 18,000 the previous week. Ethanol inventories dropped to their lowest level in four months. Biofuel stockpiles fell to 20.642 million barrels in the seven days ending on April 2, the lowest level since November 13. ********************************************************************************************** Petition Asks EPA to Regulate Large Livestock Farms Two dozen environmental and consumer groups are asking the Environmental Protection Agency to regulate large dairy and hog farms under federal air pollution laws. Groups like the Sierra Club and the Government Accountability Project say in their petition that “The EPA has the duty and authority to regulate these methane super-emitters under the Clean Air Act as part of the administration’s larger strategy to prevent catastrophic and irreversible climate change.” A Successful Farming article says the petition points out that the EPA could use the same section of the Clean Air Act to set air pollution limits on industrial hog and dairy farms that it used to propose carbon emission limits on power plants. The petition calls for regulations on operations with at least 500 cows or 1,000 hogs in place without access to pasture. The groups say in their petition that large farms account for 13 percent of all U.S. methane emissions. “Proven, pasture-based farming with reduced, sustainable herd sizes will help restore rural communities, help stabilize the climate, and provide environmental justice,” the petition states. ********************************************************************************************** Coalition Asks for Increased Conservation Funding Seventy of the top agriculture, conservation, and wildlife groups delivered a letter to Congress last week asking for robust funding for conservation programs and technical assistance for the fiscal year 2022. In the letter, groups like the American Farmland Trust, the National Association of Conservation Districts, and many others called on House and Senate appropriators to provide necessary robust increases to discretionary USDA conservation funding and reject any cuts to farm bill conservation programs through the FY 2022 appropriations process. The coalition says, “As Congress and the USDA continue to increase focus on climate change and the opportunities that agriculture and forestry can provide to sequester carbon, reduce greenhouse gas emissions, and build resilience, funding for conservation support is more important now than ever.” The letter asks lawmakers to maintain full funding for conservation programs mandated by the 2018 Farm Bill. They also want appropriators to provide at least $1.2 billion in discretionary funding for Conservation Operations, including $1.1 billion for Conservation Technical Assistance. This money facilitates Natural Resources Conservation Service operations outside the mandatory farm bill programs. “Technical assistance is essential for the delivery of conservation support for farmers, ranchers, and forest landowners across the country by providing capacity and conservation planning to support implementation,” the letter says. ************************************************************************************ Farmers, Biofuel Producers Not Sold on Electric Cars Both President Biden and the U.S. auto industry say the nation is headed to a giant shift from liquid-fueled cars to electric vehicles. However, the Associated Press says biofuel producers, farmers, and their congressional supporters don’t agree. They say now is the right time to increase sales of ethanol and biodiesel, not set them aside. Biden’s infrastructure proposal includes billions of dollars to pay for 500,000 electric vehicle charging stations, while General Motors set a goal of shifting its entire production to electric vehicles by 2035. But any shift to electric cars will be gradual, so ethanol and biodiesel producers say biofuels will be needed for the foreseeable future. Biofuel supporters cite a recent study from Harvard and Tuft Universities that found ethanol emits 46 percent less carbon than gasoline, which they say makes it imperative for the climate that the nation prioritize increasing its biofuel production. In the effort to cut carbon emissions, Geoff Cooper of the Renewable Fuels Association calls ethanol the “low-hanging fruit” when it comes to slowing global climate change. He supports an immediate change from gasoline blended with 10 percent ethanol up to a 15 percent blend. ********************************************************************************************** Plant-Based Retail Food Sales Grow 27 Percent New data from the Plant-Based Foods Association and The Good Food Institute shows U.S. retail sales of plant-based foods continued double-digit increases in 2020, rising 27 percent. That brought the total plant-based market value to $7 billion. The plant-based food market grew almost twice as fast as the total U.S. retail food market, which increased 15 percent as COVID-19 closed restaurants and consumers stocked up at the grocery store. Of the total households in the U.S., 57 percent say they purchase plant-based foods, up from 53 percent in 2019. The value of plant-based meat, which is the second-largest plant-based category, hit $1.4 billion in 2020. Sales grew by 45 percent, up from $962 million in 2019. The plant-based meat category grew twice as fast as conventional meat and now accounts for 2.7 percent of retail packaged meat sales. Eighteen percent of American households now buy plant-based meat, up from 14 percent in 2019. Plant-based milk, the largest plant-based category, reached $2.5 billion.
| Rural Advocate News | Friday April 9, 2021 |
Washington Insider: Leafy Green Warning Food Safety News is reporting this week that the Food and Drug Administration has aimed an “unmistakable warning shot at the leafy greens industry.” FSN says the actual warning came in a column from Mike Taylor who co-chairs the board of the non-profit group “Stop Foodborne Illness” that represents foodborne illness victims and their families in efforts to keep people from getting sick. Taylor has a long history with the industry. He served as FDA's Deputy Commissioner for Foods and Veterinary Medicine from 2010 to mid-2016 and later worked for USDA's Food Safety and Inspection Service, where he was acting under secretary for safety. FSN reminds that Taylor was the official who, after the deadly 1992-93 Jack in the Box hamburger outbreak, ruled that the pathogen E. coli O157:H7 “is an adulterant in meat.” Taylor says that he hopes the recent FDA warning will serve as a call to urgent action that gets to the root of the problem of the persistent dangerous E. coli in the growing environment for leafy greens and other fresh produce. He says the warning cited the recurring nature of the E. coli hazard in the Salinas and Santa Maria growing areas and declared the recurring strain implicated in the 2020 outbreak to be a “reasonably foreseeable hazard,” which it attributed to the presence of cattle on land adjacent to growing fields. This finding seems obvious and shouldn't be surprising, Taylor thinks, but noted that the surprise is that FDA used regulatory language to spell out implications: farms covered by the current produce safety rules “are required” to implement science and risk-based preventive measures to minimize the risk of serious illness or death from the E. coli hazard. Make no mistake, he says, FDA's message is aimed not only at farms but at every entity involved in the commercial production, processing and sale of leafy greens coming from the California Central Coast Growing Region. The message is that, without effective preventive measures, important quantities of leafy greens will be in persistent violation of federal food safety regulatory standards. He does not anticipate FDA taking extensive judicial action to enforce its April 6 finding, absent egregious practices or clear negligence in a particular leafy green growing situation. He does see, however, a heightened sense of urgency at FDA and frustration that efforts to date have not solved the leafy greens safety problem. He shares that frustration, he says. Fifteen years ago, the disastrous spinach outbreak caused by E. coli O157:H7 was linked by the Centers for Disease Control and Prevention to run-off from nearby grazing land, he recalls. “Since then, we've had outbreak after outbreak associated with E. coli in leafy greens and other fresh produce. And the outbreaks are just the tip of the public health iceberg. The federal government estimates that 60% of all food-related E. coli O157:H7 illnesses are associated with fresh produce. The vast majority of these illnesses are not part of an identified outbreak,” he concludes. Recent E. coli outbreaks and illnesses persist despite a lot of hard work by a lot of people in the leafy greens industry, researchers, the California Department of Food and Agriculture, the FDA and its federal partners, Taylor says. He mentions groups he works with and says he knows “serious people are at work on the problem.” Then he asks what actions does public health demand? At one level, the answer to these questions are the same he says--the leafy greens industry and all those across the leafy greens supply chain and in government should be doing everything they can to minimize the “now well-known risk posed by E. coli O157:H7.” Certainly, this includes preventative measures within the leafy greens production system, such as strict implementation of rigorous water quality and irrigation standards, improved compost management, sanitation of harvesting equipment, and pre-harvest test-and-hold programs. He also thinks that modern food safety best practices dictate that prevention should begin at the root of the problem -- and that as long as leafy greens are grown outdoors in the vicinity of cattle operations, the food safety problem will persist. However, he notes that effective vaccines are available. Changed feeding practices have promise. Perhaps containment measures can reduce risk. He adds that it is clear that “no responsible food manufacturer would today deem it acceptable to produce food in an environment in which dangerous bacteria are being released or are present on a sustained basis. The same principle should apply to leafy greens and other fresh produce grown outdoors.” However, he notes that neither greens producers or cattle producers can exert “the necessary direct control over the source of the hazard, in many cases.” That is why FDA Deputy Commissioner Frank Yiannas calls for “industry leadership and collaboration among growers, processors, retailers, state partners and the broader agricultural community,” including cattle producers, Taylor argues. He says he is “glad” the alarm has been sounded and that even though the kind of leadership needed is difficult in a “notoriously fragmented” sector, he thinks too much is at stake for all concerned to let such obstacles stand in the way. He says “now is the time for leaders from all across the commercial value chain and government to act together, with greater urgency, to get to the root of the problem.” So, we will see. Clearly FSN and Taylor have strong voices throughout the industry and their ideas can be expected to attract attention. Whether or not this will be adequate to control this growing safety problem remains to be seen and should be watched closely by producers in the months ahead, Washington Insider believes.
| Rural Advocate News | Friday April 9, 2021 |
Groups Call On EPA To Regulate Large Hog, Dairy Operations Several environmental and other groups have petitioned EPA to use the same authority under the Clean Air Act (CAA) to regulate power plants to regulate large dairy and hog farms. They said the agency should regulate those operations with more than 500 dairy cattle and more than 1,000 hogs without access to pasture as major sources of the greenhouse gas (GHG) methane. They also called on EPA to reject classifying methane captured from such operations as “biogas,” calling burning of methane collected from such operations as a “false solution” relative to climate change. EPA said it would respond to the petition. If it were to actively pursue regulations requested by the groups, it would entail a process that could take up to two years before any actions would be taken. And, there would have to be a public comment period as the rules/regulations were being developed.
| Rural Advocate News | Friday April 9, 2021 |
US Pork Producers Welcome Philippines' Actions to Boost Pork Imports The Philippines Pork import tariffs will be reduced and a quota for those imports will increase as the country seeks to address a shortfall in pork supplies caused by a sharp reduction in the countries hog herd due to African Swine Fever (ASF). The order signed by President Rodrigo Duterte would see tariffs cut to 5% for three months from a current 30%, and it would rise to 10% during months four through 12. The tariffs would apply to imports under a quota of 404,210 metric tons -- a rise of 350,000 metric tons from a prior import quota of 54,210 metric tons. For imports over the quota level, tariffs would drop from a current 40% to 15% for the first three months of the action and would rise to 20% for the remainder of the 12-month period covered by the order. The National Pork Producers Association (NPPC) welcomed the move, noting it came after a meeting between the group and the Philippines ambassador to the U.S. “NPPC has been pressing both the U.S. and Philippines governments to lower pork import tariffs since ASF outbreaks began in the Philippines,” the group said in a release. “Since 2019, the Philippines has been battling African swine fever (ASF), and as a result, domestic production has declined, supplies have tightened, and pork prices have spiked,” said NPPC President Jen Sorenson. “While we are saddened by the spread of ASF in the Philippines, we appreciate the opportunity to send more high-quality U.S. pork to ease the shortage and the spike in prices.”
| Rural Advocate News | Friday April 9, 2021 |
Friday Watch List Markets The U.S. Labor Department will release the producer price index for March at 7:30 a.m. CDT Friday. At 11 a.m., USDA will post the April WASDE report with updated estimates of U.S. grain supplies and South American corn and soybean crops. Traders will continue to monitor the latest weather forecasts and watch for any news of export sales. Weather Friday brings scattered thunderstorms to the northern Plains and northern Midwest. Precipitation will be light and accompanied by strong winds, leading to high fire threat in drought areas. Dry and windy conditions also lead to high fire threat in the southwestern Plains. One other area of precipitation extends from the southeastern Plains to the Gulf Coast.
| Rural Advocate News | Thursday April 8, 2021 |
Animal Welfare and Environmental Groups Want GE Animal Regulations to Stay at FDA This week, thirteen animal welfare and environmental groups urged federal agencies to maintain regulatory authority over genetically engineered food animals within the Food and Drug Administration. The request is in response to the Trump-era proposal to move the regulatory authority to the Department of Agriculture. Specifically, USDA's Animal and Plant Health Inspection Service would oversee regulatory authority over genetically engineered animals. In letters to the FDA and USDA, the groups claim, “FDA possesses the scientific and administrative capacities to regulate these animals better than USDA.” The groups contend, “Genetically engineered animals are a significant new threat to our food system.” Dana Perls of Friends of the Earth says, "Handing authority over to the USDA will dilute the already-weak GMO animal regulations." The thirteen groups signing the letters to the Biden administration include the Center for Food Safety, the Animal Legal Defense Fund, Friends of the Earth and the National Family Farm Coalition, among others. ************************************************************************************ ASA/AFBF: Stepping on Stepped-up Basis Has Big Consequences Any change in capital gains tax policy that eliminates or scales back stepped-up basis could result in a massive tax burden on the agricultural sector. A new analysis by the American Soybean Association and the American Farm Bureau Federation confirmed the findings. To minimize the impact of burdensome capital gains taxes, farmers and ranchers use stepped-up basis, which provides a reset for the asset value basis during intergenerational transfers. The magnitude of the tax burden that would be felt if basis is taken away or reduced would likely significantly exceed the annual income generated by the assets, something that has American farmers concerned. ASA President Kevin Scott says, “What people may not realize is that it could take years of returns to equal the amount of the tax if stepped-up basis is reduced, or worse, eliminated.” AFBF President Zippy Duvall adds, “Eliminating stepped-up basis would make passing the family farm to the next generation much more difficult.” ************************************************************************************ NCBA Welcomes Preserving Family Farms Act House lawmakers recently introduced the Preserving Family Farms Act of 2021, a priority for the National Cattlemen’s Beef Association. NCBA has long supported efforts to reduce tax burdens on farmers and ranchers. This bipartisan legislation to expand IRS Code Section 2032A would allow cattle producers to take advantage of the Special Use Valuation and protect family-owned businesses from the impact of the federal estate tax, commonly referred to as the Death Tax. The Preserving Family Farms Act increases the maximum amount allowed under the exemption from $750,000 to $11 million, indexed for inflation, thus reviving an important tool in the toolbox for farm and ranch families across the U.S., according to NCBA. If enacted, the legislation will provide a permanent solution to an issue that has long plagued cattle producers. While the current 2032A reduction is 55 percent higher than the value established two decades ago, USDA estimates that cropland values have increased by 223 percent. ************************************************************************************ NPPC Applauds the Philippines’ Decision to Import More Pork The Philippine government will provide more market access for pork imports to combat rising pork prices and stabilize supplies. Securing better access to the Philippines market has been a top, long-term priority for the National Pork Producers Council. NPPC President Jen Sorensen says, “While we are saddened by the spread of ASF in the Philippines, we appreciate the opportunity to send more high-quality U.S. pork to ease the shortage and the spike in prices.” Under the announcement, tariffs for imported pork under the increased minimum access volume of 404,210 metric tons would be reduced from 30 percent to five percent for the next three months, and then ten percent thereafter. The announcement comes on the heels of NPPC’s meeting with the Philippine Ambassador to the U.S. NPPC has been pressing both the U.S. and Philippines governments to lower pork import tariffs since African swine fever outbreaks began in the Philippines. NPPC says the expanded market access is expected to generate significantly more U.S. pork exports to the country. ************************************************************************************ 2020/21 Sorghum Quality Report Released by U.S. Grains Council The U.S. Grains Council has published its 2020/2021 Sorghum Quality Report, and for the second year in a row, U.S. sorghum was, on average, graded above necessary requirements for the U.S. No. 1 designation. Protein content in sorghum was up eight percent year over year, with readings coming in at 11.2 percent, almost a full percentage point jump above last year’s content. Reece Cannady, USGC manager of global trade, says, “Protein content in sorghum is really what can set it apart from other coarse grains.” The report, funded through the Department of Agriculture’s Foreign Agricultural Service Agricultural Trade Promotion program, provides international customers accurate, unbiased information about the 2020 U.S. sorghum crop. To generate the report’s findings, samples were collected from 13 participating elevators located in Texas, Kansas, Nebraska and South Dakota. Total sorghum damage came in at just 0.0 percent in the aggregate, and broken kernel and foreign material was only 1.6 percent, both similar to last year’s results. ************************************************************************************ Application Period Opens for 2022 Farm Bureau Ag Innovation Challenge The American Farm Bureau Federation, in partnership with Farm Credit, has opened online applications for the 2022 Farm Bureau Ag Innovation Challenge. The national business competition showcases U.S. startup companies that are providing solutions to challenges faced by America’s farmers, ranchers and rural communities. Farm Bureau will award $165,000 in startup funds provided by sponsors Farm Credit, Bayer Crop Science, Farm Bureau Bank, Farm Bureau Financial Services, FMC Corporation and John Deere. Launched in 2015 as the first national competition focused exclusively on rural entrepreneurs, the contest continues to identify the next ag entrepreneurs to watch and supports innovation essential to Farm Bureau member businesses and communities. AFBF President Zippy Duvall says, “Now, more than ever, we need creative solutions from entrepreneurs to help our farmers, ranchers and rural communities thrive.” For this eighth year of the competition, Farm Bureau is seeking entrepreneurs who are addressing either traditional or new/emerging challenges. Find application guidelines and apply at fb.org.
| Rural Advocate News | Thursday April 8, 2021 |
Washington Insider: Inequalities in Recovery Alarm IMF The New York Times is reporting this week that there is a danger that emerging markets will fall far behind their advanced counterparts and become “the whole world's problem.” The Times argues that the global economy is rebounding faster than previously expected, largely thanks to the strength of the United States. The global dynamic appears to be following a “K-shaped” pattern worldwide, NYT says. While many wealthy nations are poised for a major economic expansion this year, others could end up reversing decades of progress in fighting poverty. Top international economic officials are now warning that this divergence, which is being amplified by sluggish deployment of vaccines in developing countries, is a threat to stability and long-term growth. “Economic fortunes within countries and across countries are diverging dangerously,” Kristalina Georgieva, managing director of the IMF, said at a panel discussion on Tuesday during the annual spring meetings of the fund and the World Bank. U.S. Treasury Secretary Janet Yellen emphasized that point, saying that the inability of low- and middle-income countries to invest in robust inoculation programs could result in “a deeper and longer-lasting crisis, with mounting problems of indebtedness, more entrenched poverty and growing inequality.” Fears over rising inequality were underscored on Tuesday as the IMF said it was upgrading its global growth forecast for the year thanks to vaccinations of hundreds of millions of people, efforts that are expected to help fuel a sharp economic rebound. The wealthiest countries are leading the way out of the crisis, particularly the United States, whose economy is now projected to expand by 6.4% in 2021. The euro area is expected to expand by 4.4% and Japan is forecast to expand by 3.3%. Among emerging market and developing economies, China and India are expected to drive growth. China's economy is projected to expand by 8.4%, offering its own significant boost to overall global growth, and India's is expected to expand by 12.5%. But within advanced economies, low-skilled workers have been hit the hardest and those who lost jobs could find it difficult to replace them. And low-income countries are facing bigger losses in economic output than advanced economies, reversing gains in poverty reduction and risking long-lasting pandemic-era scars. Emerging market economies in many cases have fewer resources for fiscal stimulus, vaccine investments and labor force retraining--factors that put them at risk of falling behind and getting stuck as the world starts its rebound. If their growth lags badly, the fact that big economies like the United States are accelerating could compound the pain. A stronger American growth outlook already is pushing up market-based interest rates on U.S. government debt. As that happens, it attracts capital from abroad, making borrowing more expensive in already-weak economies and risking currency volatility. Researchers at the IMF pointed out recently that it is important that rates on U.S. debt are rising because of a strengthening economic outlook, one that will benefit many economies by stoking demand for their exports. Still, “countries that export less to the United States yet rely more on external borrowing could feel financial market stress.” Most U.S. officials have focused on how stronger domestic growth could actually help the rest of the world as American consumers buy foreign goods and services. “This year the U.S. looks like it's going to be a locomotive for the global economy,” Fed Vice Chair Richard Clarida said. Yellen made a similar argument on Tuesday during a panel discussion at the IMF, at which she urged countries not to let up on fiscal support. “Stronger growth in the U.S. is going to spill over positively to the entire global outlook and we are going to be careful to learn the lessons of the financial crisis, which is 'don't withdraw support too quickly,'” she said. “There's a race right now between these variants of concern and vaccines,” she said on Tuesday. Yellen urged “global cooperation and attention” to how disparities in vaccine distribution affect inequality and economic recoveries. The IMF agrees. Vitor Gaspar, the fund's director of fiscal affairs, said that the virus cannot be eradicated anywhere until it is eradicated everywhere. “Global vaccination is probably the global public investment with the highest return ever considered,” Gaspar said in an interview. “Vaccination policy is economic policy.” “We think market participants underestimate the likely pace of improvement in both the public health situation and economic activity in the remainder of 2021,” Jan Hatzius at Goldman Sachs said. Vaccinations are high or progressing in Canada, Australia, Britain and the euro area. In emerging markets, he noted that Goldman economists expect 60% to 70% of the population to have “at least some immunity” by the end of the year when counting prior coronavirus infection and vaccine proliferation. From the Fed to the European Central Bank and Bank of Japan, monetary authorities have employed a mix of rock-bottom rates, huge bond purchases and other emergency settings to try to cushion the pandemic's fallout. Organizing bodies have echoed Yellen's comment: They argue that it's important to see the recovery through, rather than pulling back on economic help early. So, we will see. The vigorous global reductions in virus cases and sighs of economic recovery will be very welcome. Efforts to widen the recovery will be welcome, but difficult to manage -- trends producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday April 8, 2021 |
Countries Taking Trade Actions on Food Price Inflation Russia's government has approved a formula-based export tax system for sunflower oil and a higher export tax on sunflower seeds, the government said, with the actions linked to ongoing efforts to combat domestic food price inflation. The order signed by Prime Minister Mikhail Mishustin would set a one-year export tax on sunflower oil of 70% of the difference between $1,000 and a price per metric ton calculated by the country's ag ministry. That price will be reduced by $50 per ton each month. Sunflower seed exports will be taxed at 50%, with a minimum of $320 per tonne for July 1, 2021 and August 31, 2022. Meanwhile, South Korea will lift import tariffs on edible corn and some grains through the end of 2021 in a bid to ease inflationary pressures in the country, but the quota system will still apply, according to an announcement from South Korean Finance Minister Hong Nam-ki. Currently, duties of 3% are levied on imported edible corn, according to Yonhap news. The country will also import eggs and release reserves of napa cabbage, with imports of 25 million eggs planned in April to temper prices that have risen due to bird flu -- Yonhap reported egg imports totaled 64 million since late January.
| Rural Advocate News | Thursday April 8, 2021 |
Olympics Now Snared In Xinjiang Controversy Axios is reporting that the International Olympic Committee (IOC) gave a uniform contract for this summer's games in Japan to Hengyuanxing (HYX) Group for formal uniforms, including those used in ceremonies, for IOC members and staff. HYX has advertised on e-commerce platforms that its products contain Xinjiang cotton, and one of the factories overseen by HYX Group is located in Xinjiang, according to the company website. An IOC spokesperson told Axios that the HYX Group has provided the IOC with a certificate on the origin of cotton for the production of IOC uniforms and that the cotton originated outside China. The IOC did not provide a copy of the certificate to Axios and emphasized that the IOC “must remain neutral on all global political issues.” While it is committed to upholding human rights, the IOC said it “has neither the mandate nor the capability to change the laws or the political system of a sovereign country.” The item also notes that the IOC did not say where the certificate came from or what process was used to make the claims.
| Rural Advocate News | Thursday April 8, 2021 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. jobless claims and an update of the U.S. Drought Monitor are all set for 7:30 a.m. CDT Thursday. The U.S. Energy Department releases natural gas inventory at 9:30 a.m. Grain traders may be cautious ahead of Friday's WASDE report, but will check the latest weather forecasts and watch for any news of export sales. Weather Light to moderate rain is in store for the Midwest and Mid-South Thursday. The rain offers row crop soil moisture ahead of planting. Meanwhile, dry, warm and windy conditions will sweep across the Plains with a notable fire threat. This combination is stressful to wheat
| Rural Advocate News | Wednesday April 7, 2021 |
Ag Economy Barometer up 12 Points The Ag Economy Barometer rose in March to 177, the highest reading for the barometer since the record high reading of 184 in October. Organizers say this month’s 12-point rise in the barometer was attributable almost entirely to ag producers’ more optimistic view of the future. The Index of Future Expectations climbed to 164, 16 points above February’s index. Although the Index of Current Conditions, at 202, changed little from a month earlier when it stood at 200, it did mark a return to the index’s record high, first reached in December. Strong ag commodity prices and improved farm financial conditions continue to support the Ag Economy Barometer readings as heading into planting season. The improvement in future expectations occurred even though producers are becoming increasingly pessimistic that the trade dispute with China will be resolved in a way that’s beneficial to U.S. agriculture. Producers continue to be relatively optimistic about making capital investments and became more optimistic about farmland values. ************************************************************************************ USDA Weekly Crop Progress Reports Begin Planting season is underway as the Department of Agriculture released the first weekly Crop Progress report for 2021 Monday. USDA says planting has begun for barley, corn, cotton, oats, rice, sorghum, spring wheat, and sugarbeets. By this time last year, two percent of the corn crop had been planted, and two percent has been planted so far in 2021. Six percent of the cotton crop is in the ground, one percentage point behind the same time last year. Meanwhile, 14 percent of the sorghum crop is planted, one percentage point behind a year ago. Barley, oats, rice, spring wheat and sugarbeet plantings are similar to 2020 progress. Crop Progress reports are released the first workday of the week during the growing season from April through November. The reports list planting, developmental, and harvesting progress, and overall condition of selected crops in major producing states. Crops featured in the report include corn, soybeans, wheat, rice, sorghum, cotton, oats, barley, peanuts, sugarbeets, and sunflowers. ************************************************************************************ Droughts Longer, Rainfall More Erratic in the West Dry periods between rainstorms have become longer, and annual rainfall has become more erratic across most of the western United States during the past 50 years. A study published by The Department of Agriculture's Agricultural Research Service finds rain has been falling in fewer and sometimes larger storms, with longer dry intervals between. Total yearly rainfall has decreased by an average of four inches over the last half century, while the longest dry period in each year increased from 20 to 32 days across the West. Extreme droughts are also occurring more often in the majority of the West, according to historical weather data, as there has been an increase in the year-to-year variation of both total rainfall amounts and the duration of dry periods. Notable exceptions to these drought patterns were seen in Washington, Oregon and Idaho and the Northern Plains region of Montana, Wyoming, and the most western parts of North and South Dakota. ************************************************************************************ Growth Energy Calls on Indiana Governor Eric Holcomb to Veto Anti E15 Bill Growth Energy Tuesday urged Indiana Governor Eric Holcomb to veto state legislation the biofuels group claims is intended to destroy demand for E15, a fuel blend with 15 percent ethanol. In a letter to Governor Holcomb, Growth Energy CEO Emily Skor states, “SB 303 was designed to stall new competition at the fuel pump and prevent more consumers from saving three to ten cents per gallon on a lower-carbon, higher-octane fuel blend.” According to the letter, SB 303 seeks to limit sales of E15 by mandating warning labels on E15 fuel dispensers that serve “only to confuse consumers and add completely unnecessary redundancy” to already burdensome federal labeling requirements. The fuel already has similar federal label requirements. The bill establishes new maximum vapor pressure limits for gasoline and for ethanol blended fuels in the state. Additionally, fuel dispensers of E15 must have a statement “Attention: E15. Check owner's manual for compatibility and warranty requirements." ************************************************************************************ Missouri River 2021 Runoff Forecast Below Average Reservoir inflows in the Missouri River basin above Sioux City, Iowa were well-below average in March, contributing to a below-average forecast for 2021. John Remus, chief of the Missouri River Basin Water Management Division for the Army Corps of Engineers, says, "Due to the lack of plains snowpack in 2021, below-average mountain snowpack, and dry upper basin conditions, we expect upper basin runoff to be below average.” The updated 2021 upper basin runoff forecast is 21.3 million acre-feet, 83 percent of average. The upper basin runoff forecast is based on soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. System storage is currently 56.1 million-acre-feet, at the base of the annual flood control zone. The Army Corps of Engineers says the system is positioned to serve all Congressionally authorized purposes during 2021, including flood control, navigation, and water supply. Gavins Point Dam releases were increased near the end of March to begin flow support for Missouri River navigation. ************************************************************************************ World Dairy Expo 2021 To Remain in Madison, Wisconsin World Dairy Expo will remain in Madison, Wisconsin, in 2021. Event organizers last week announced the 54th edition of the event is scheduled September 28 – October 2, 2021 at the Alliant Energy Center in Madison. The announcement follows contingency planning and consideration of alternative venues. Bill Hageman, WDE Board President, says, “The clarity that Expo’s leaders sought from Dane County officials regarding the path forward for responsibly and safely hosting World Dairy Expo 2021 at the Alliant Energy Center has come to fruition.” Also, Dane County, Wisconsin, Home of World Dairy Expo, offered the event a ten-year contract extension to keep it in Madison. Discussions regarding the contract extension proposed concerning World Dairy Expo’s use of the Alliant Energy Center, a county-owned facility, will take place over the coming months. In a traditional year, World Dairy Expo welcomes upwards of 70,000 attendees and provides anan economic impact of more than $45 million each year.
| Rural Advocate News | Wednesday April 7, 2021 |
Washington Insider: Senate Parliamentarian Ruling Favors Democrats Bloomberg is reporting this week that the prospects for President Joe Biden's economic agenda could be enhanced by a new ruling from the Senate parliamentarian that opens the door to passing multiple additional bills this year without Republican support. A spokesman for Senate Majority Leader Chuck Schumer, D-N.Y., said on Sunday that Parliamentarian Elizabeth MacDonough has ruled Democrats could enact another reconciliation package by revising the budget blueprint the Democratic Congress adopted earlier this year. The ruling “allows Democrats additional tools to improve the lives of Americans if Republican obstructions continue,” said the spokesman, Justin Goodman. Goodman said no decisions have been made on how to move Biden's agenda, but called the decision nonetheless “an important step forward” and “that this key pathway is available to Democrats if needed.” Senate Finance Chairman Ron Wyden, D-Ore., praised the ruling. “The American people want bold action to address our country's many challenges, and Democrats now have more options to overcome Republican obstruction and get things done,” he said. Biden's $1.9 trillion coronavirus relief package passed using the budget reconciliation process, which bypasses the 60-vote rule required to pass most legislation in the Senate. The Democrats' plan released over the weekend and Biden's corporate tax proposals last week are designed to help raise revenue for the administration's sweeping $2.25 trillion infrastructure plan. Both mark a shift from the 2017 tax law, which dramatically lowered corporate tax rates and eased rules in the name of making U.S. companies more competitive globally – but which both Biden and Senate Democrats say has given incentives for companies to ship jobs overseas. However, the plan proposed by Wyden, Sens. Sherrod Brown, D-Ohio, and Mark Warner, D-Va., doesn't call for an increase in the corporate tax rate, as Biden's proposal does. The Senate plan would also retain in altered form some provisions of the 2017 law that Biden apparently wants to scrap. The tax plan the administration laid out last week would likely hit technology and pharmaceutical companies particularly hard, although the challenge for legislators would be to minimize loopholes and thus diminish the impact, tax experts said. Much of the most valuable assets at pharmaceutical and tech companies are intellectual property, like patents and algorithms--intangibles that make it easier for them to structure global operations in a way to minimize tax costs. Both Republicans and Democrats have sought to bolster the U.S. tax take from companies' overseas operations and President Trump's 2017 overhaul included measures to do that. Biden's plan takes a tougher approach, with a 21% minimum tax on foreign profits and a 15% minimum levy on profits reported on financial statements. It limits companies from using credits for research and development costs and deductions for paying employees in stock. The provisions--part of the administration's plan to finance a $2.25 trillion infrastructure package--mean that tech and pharmaceutical companies could lose many of the tax-planning tools that allowed them to pay low rates for years. In the meantime, in other news, Bloomberg noted that nuclear talks between Iran and world powers began their most serious attempt yet to resurrect a troubled deal, with negotiators from the U.S. and Islamic Republic gathered at the same venue for the first time since the U.S. withdrew from the earlier deal. Diplomats arrived at Vienna's Hotel Imperial this week for the talks, which may extend through the end of the week if progress is made. Iranian and U.S. negotiators aren't expected to speak directly, reflecting the deep distrust they will have to overcome. Also, U.S. climate envoy John Kerry is in New Delhi this week to push Prime Minister Narendra Modi's government to boost its climate ambitions as it considers announcing a net zero target ahead of a virtual summit later this month. The visit comes ahead of a meeting of leaders from 40 nations organized by President Biden that will run from April 22-23 aimed at galvanizing efforts to commit to more ambitious climate change mitigation targets, at a time of rising pressure on nations to consider net-zero greenhouse gas emissions targets after China announced its plan last year. Kerry met in India on Monday with Russian Foreign Minister Sergei Lavrov to discuss climate issues. The brief talks in New Delhi came as the U.S. is seeking the participation of the leaders of Russia and China, along with dozens of others, in the global summit on climate change later this month. So far, the Kremlin hasn't said whether President Vladimir Putin will attend. Finally, Bloomberg says Fed Chair Jerome Powell will attempt to forecast Black unemployment in the near future. This suggests that Wall Street economists will need to try their hand at forecasting new variables – like the Black unemployment rate. That shift in focus could itself contribute to the outcome that the Fed chair says he wants: an economic expansion reaching corners of the labor force that have been slower to recover in the past. So, we will see. The new administration is attempting to apply new tools and stronger approaches to a number of social objectives, although the toxicity of the Washington climate remains very high. These are fights and concerns that producers should watch extremely carefully as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday April 7, 2021 |
Biden To Tap Bianchi For USTR Post Bloomberg reports that President Joe Biden will likely name longtime aide and Obama administration veteran Sarah Bianchi as deputy U.S. Trade Representative (USTR). Bianchi is a senior managing director at Evercore ISI International and has previously worked for BlackRock and Airbnb. She is also chair on the advisory board of the Biden Institute at the University of Delaware. A decision is not yet final, and Bianchi is still being vetted, the report said. During the second term of the Obama administration, Bianchi served as deputy assistant to the president for economic policy and director of policy for then-Vice President Biden.
| Rural Advocate News | Wednesday April 7, 2021 |
USDA Reopened CFAP Signup USDA announced that with updates to the Coronavirus Food Assistance Program (CFAP), signup for CFAP 2 restarted April 5 and will run at least 60 days. CFAP updates include an increase in CFAP 1 payments for cattle which will total more than $1.1 billion for over 410,000 producers. An additional CFAP 2 payment of $20 per acre for producers of eligible flat-rate or price-triggered crops will total more than $4.5 billion to over 560,000 producers. USDA said it will also process eligible payments for CFAP Additional Assistance (CFAP-AA) and will finalize routine decisions and minor formula adjustment on applications and begin processing payments for certain applications filed for the program. USDA also said it would earmark at least $6 billion for new programs using funding from the Consolidated Appropriations Act approved in December. However, the agency did not detail yet what form the assistance will take beyond a broad list of commodities and other areas the program will address -- Pandemic Assistance for Producers. The assistance is also expected to come for biofuel producers who have so far not been deemed eligible for any USDA assistance. USDA is currently accepting proposals for cooperative agreements to provide outreach and technical assistance to socially disadvantaged farmers and ranchers.
| Rural Advocate News | Wednesday April 7, 2021 |
Wednesday Watch List Markets The U.S. Census Bureau will report on the trade deficit for February at 7:30 a.m. CDT Wednesday. Later that morning, USDA will distribute official export data for various ag products. At 9:30 a.m., the U.S. Energy Department will release its weekly inventory report, including an update on ethanol production. At 1 p.m. CDT, the Federal Reserve will issue minutes from its latest FOMC meeting. Weather Light to moderate rain is in store for the north-central through southeastern Plains and the western Midwest Wednesday. Moisture is favorable ahead of spring planting. Driest areas of the northern Plains are being bypassed by this rain, however.
| Rural Advocate News | Tuesday April 6, 2021 |
USDA Reopens CFAP2 Enrollment The Department of Agriculture Monday reopened the signup window for the CFAP 2, the Coronavirus Food Assistance Program. CFAP 2 provides financial assistance that gives producers the ability to absorb increased marketing costs associated with the COVID-19 pandemic. The initial CFAP 2 signup ended in December, but USDA has reopened the signup period for CFAP 2 for at least 60 days. Producers have multiple options to apply for CFAP 2, including through an online application portal and working directly with the FSA office at their local USDA Service Center. USDA will also finalize routine decisions and minor formula adjustments on applications and begin processing payments for certain applications filed as part of the CFAP Additional Assistance. Additionally, USDA announced $2 million to establish partnerships with organizations to provide outreach and technical assistance to socially disadvantaged farmers and ranchers. A USDA spokesperson says, “This funding will support grassroots organizations and public institutions as we support their producers.” ************************************************************************************ Consumers Grocery Store Visits Down A new report from Placer.ai shows consumers are not heading to the grocery store as much in 2021, compared to 2020. Pandemic-driven shopping sprees last year had consumers cleaning grocery store shelves. The analytics firm reports a 28 percent drop in store visits the week of March 8, 2021. One researcher says, “2021 is going to be mired in the unique challenge of trying to make sense of certain sectors in a world where year-over-year data could be heavily misleading.” Visits to leading grocers like Albertsons or Publix during the week of March 8 were down 34.6 percent and 20.3 percent, respectively. Yet, when looking at the same brands compared to the equivalent week in 2019, the picture shifts dramatically, with Albertsons down just 0.3 percent and Publix up 0.8 percent. While COVID’s health effects seem to be dissipating, the economic consequences will last far longer, as researchers say grocery stores still provide a cost-conscious alternative to eating out. ************************************************************************************ U.S. Hemp Seed Production Increasing Hemp cultivated for seed and grain comprised approximately ten percent of 2020 total U.S. acreage, approximately 14,000 acres, according to data provided by Hemp Benchmarks. By comparison, Canadian cultivators grew more than five times that acreage, beyond 75,000 acres, the vast majority of which were exported to the United States. Exports to the U.S. have exceeded $300 million since 2010, and the U.S. is quickly closing the gap as the artificial protectionism provided by prohibition evaporates. Growth in U.S. acreage is being fueled largely by increased consumer demand for plant-based proteins, as well as optimism that hemp legalization will broaden potential markets for grain. Hemp grain production in the United States is most concentrated in three states – Indiana, Montana, and North Dakota. New Frontier Data projects that 2020 retail sales for hemp food products will account for $67.1 million, and grow to $144.1 million by 2025. The fastest-growing product category of hemp seed products is protein powder, which rang up $4.7 million in total sales in 2020. ************************************************************************************ USDA Seeks Public Input to Create a New Rural Renewable Energy Pilot Program The Department of Agriculture seeks public input to help create a new Rural Renewable Energy Pilot Program. USDA is seeking written comments and will host a public listening session on April 22, 2021. USDA’s Justin Maxson says, “we must put rural communities at the heart of climate action and climate-smart solutions, and that begins with getting feedback.” The Consolidated Appropriations Act of 2021 provided $10 million to USDA to develop a pilot program that provides financial assistance to rural communities to further develop renewable energy. The request for information and the stakeholder listening session seek input to help develop options for the Rural Renewable Energy Pilot Program. The new program will aim to support the nation’s critical energy needs, and combat climate change while advancing environmental justice, racial equity, and economic opportunity using distributed energy technologies, innovations, and/or solutions. Written comments are encouraged and must be submitted online by April 29, 2021, via the Federal eRulemaking Portal at regulations.gov. ************************************************************************************ Chicken Marketing Summit 2021 Registration Opens Registration is now open for the 2021 Chicken Marketing Summit. The annual executive conference, hosted by WATT Global Media, is scheduled for July 18-20, 2021, at the Omni Amelia Island Resort in Fernandina Beach, Florida. This year’s Chicken Marketing Summit will focus on what consumers will be looking for from protein suppliers and what strategies will be most effective for chicken marketers going forward. Organizers say the Summit begins with a look at the future of food and a high-level look at the impacts of African Swine Fever and COVID-19 on world supply, demand and trade of meat. The talks progress from there to explore foodservice and retail strategies that succeeded in the pandemic and ones that are poised to soar post-pandemic. The Summit wraps up with discussions on strategies for connecting with consumers and creating effective messaging in the post-pandemic era. The conference includes eight general sessions focusing on the forward-looking theme "Charting post-pandemic success. For more information, visit www.chickenmarketingsummit.com. ************************************************************************************ Fuel Prices Stabilize as OPEC Increases May Oil Production For the third consecutive week, the national average price of gasoline dropped, declining 0.4 cents to $2.86 per gallon, according to GasBuddy. The national average stands 9.9 cents higher than a month ago and nearly 96 cents higher than a year ago. The national average price of diesel fell 0.2 cents in the last week and stands at $3.08 per gallon. GasBuddy’s Patrick De Haan says, “last week was a mixed bag for consumers at the pump as gas prices in half of states rose, while the other half saw declines.” De Haan says gasoline prices may see a second run to reach a national average of $3 per gallon in the months ahead. Data from the Energy Information Administration last week printed a decline in U.S. oil inventories, which now stand about six percent above the average range for this time of year. Meanwhile, U.S. gasoline demand continued to rise for the week ending March 27, as Americans continued to get outside amidst better conditions and fewer travel restrictions.
| Rural Advocate News | Tuesday April 6, 2021 |
Washington Insider: New Chinese Banking Rules The New York Times reported last weekend that China has been putting “limits on foreign banks, and that foreign businesses are worried by the move.” The new rules are seen as efforts to tame big money flows and possibly for controlling the Chinese currency, “that could give domestic rivals a competitive edge and make international firms more dependent on local lenders,” the Times says. The rules changes are seen as “sharply limiting the ability of foreign banks to do business in the country, making them less competitive against local rivals,” the Times said. One set of rules enacted in December and January restricts how much money foreign banks can transfer into China from overseas. Another, which took effect last Wednesday, required many foreign banks to make fewer loans and sell off bonds and other investments. The changes are causing a stir among the global bank executives and foreign companies in China that depend on those lenders for money, the Times says. Among other concerns, borrowers worry that the rules could make foreign-owned businesses more dependent on China's state-run banking system for the money they need to grow — and could give Beijing another potential pressure point to use against Washington and others over trade, human rights, geopolitics and other sticky issues. Banks and trade groups have been reluctant to speak publicly for fear of triggering further regulatory measures. But in a January letter to China's central bank that was reviewed by the Times, the EU Chamber of Commerce in China raised concerns about the money transfer limits. “In some cases, the risk brought about by this major structural change may fundamentally overturn the strategic development direction of EU banks” in China, the letter said. The new rules could complicate already thorny political issues, such as the U.S.-China trade war, a pending investment agreement between China and the European Union and long-simmering tensions over how Beijing controls the value of the Chinese currency. The new U.S. administration has shown little interest in letting up on the trade sanctions pressed by his predecessor and the two sides are also clashing over human rights, particularly Beijing's repression of mostly Muslim ethnic minorities in the northwestern Chinese region of Xinjiang and its crackdown on democracy activists in Hong Kong. International companies have been caught in the middle. Over the past two weeks, Chinese state media and the country's online community have encouraged boycotts of foreign businesses like H&M, the Swedish retailer, and Nike, the American athletic brand, after they vowed not to use cotton made by forced labor in Xinjiang. Still, the Times says that the reasons behind China's new banking rules aren't clear, though they appear to have little to do with the tense political environment. They seem to be aimed instead at stemming big, potentially disruptive flows of money into the country. China, which keeps tight control over external money movements appear to be worried that a surge of funds could lead to nasty surprises like inflation. Money poured into the country in the second half of last year as the Chinese economy threw off its pandemic doldrums while activity in much of the rest of the world shrank. Big money flows into a country can also make its currency rise in value — and China appears to be working hard to counter that. China's currency, the renminbi, rose sharply in value against the U.S. dollar in the second half of last year — a shift that was bad news for China's exporters. But since the Chinese government enacted its new banking rules, the currency has begun to weaken and now stands at about 6.6 renminbi to the dollar. The new rules alone aren't likely significant enough to account for the sudden halt to the renminbi's rise. But they join other moves by the Chinese government in recent months that have made moving money into China slightly harder and moving it out slightly easier. Combined, they could put pressure on the renminbi to weaken. Still, Chinese officials continue to stress that their country is open to foreign investment, particularly banking. “The inflow of foreign capital is inevitable, but so far, the scale and speed are still within our control,” Guo Shuqing, the chairman of the China Banking and Insurance Regulatory Commission, which has worked closely with the central bank on the new policies, said during a news conference on March 2. “We continue to encourage foreign financial institutions to enter China for shared development.” With near-zero interest rates elsewhere, international banks borrowed cheaply abroad. Until the new rules kicked in, they could send that money to China and lend or invest it there, reaping higher returns. The first of the new rules, issued in a memo to banks in December, appeared to be aimed at that trend and it limited the ability of global banks to raise money overseas and move it into China. The rule is being phased in but was written in a way that has already had a big effect on financial contracts involving bets on currency trends. Concerned about the rapid growth of credit in the Chinese economy, regulators ordered domestic and foreign banks to limit their balance sheets recently to show only slight growth from last year. Because China has recently loosened limits on foreign purchases of bonds, many foreign banks had been buying more bonds for sale to foreign customers, expanding their balance sheets. The full impact of the new rules will depend on how long they stay in place. Eswar Prasad, a Cornell University economist, predicted that China would eventually resume opening up to foreign financial institutions. “They don't want to scare off foreign investors in the medium to long term,” he said. So, we will see. The new administration is strongly stressing domestic job growth, and appears to be committed to continue that emphasis, high-stakes policies producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday April 6, 2021 |
Chinese Boycott On Certain Western Clothing Brands May Be Backfiring After several brands such as Nike and Adidas said they would no longer buy cotton from Chinese suppliers in Xinjiang over reports that the growers rely on forced labor by ethnic minorities to produce their cotton, Beijing called for a boycott of several companies. However, reports indicate sales of most of the boycotted brands are soaring as Chinese consumers rush to buy items before the government blocks sales entirely. Clearly, this is not likely the impact Beijing intended.
| Rural Advocate News | Tuesday April 6, 2021 |
Still Waiting on Initial Look at Biden Budget The first look at President Joe Biden's Fiscal Year (FY) 2022 discretionary budget request was not unveiled Friday, April 2, the Office of Management and Budget (OMB) confirmed. OMB declined to provide more specifics on the timeline for release, which had been expected last week. It seems there are funding disagreements among some departments, with most of the focus on the Pentagon. It will be interesting to see how the new administration puts forth its initial spending plan, with ag interests watching to see if there are any proposed reductions in programs like crop insurance that have been proposed over the years. But those suggested cuts from any administration have rarely been followed by lawmakers that write the spending details.
| Rural Advocate News | Tuesday April 6, 2021 |
Tuesday Watch List Markets Tuesday has no official reports on the docket, but traders will pay attention to the latest weather forecasts and watch for any news on export sales. Weather Tuesday will find light rain showers crossing the central Plains and western Midwest. Other crop areas will be dry. Temperatures will be seasonal to below normal north and above to much above normal central and south. In addition, strong south winds will lead to high fire danger in the southern Plains.
| Rural Advocate News | Monday April 5, 2021 |
Washington Insider: Strong March Jobs Report Helps Focus on Infrastructure The Hill is reporting this week that the strong March jobs report is helping the administration make its his case for a major investment in U.S. infrastructure funded by corporate tax hikes. The U.S. Labor Department said that accelerating COVID-19 vaccinations, easing restrictions and growing confidence fueled a strong surge in hiring in March, helping the U.S. add 916,000 jobs last month and push the jobless rate down 0.2 percentage points. The growing strength of the economy is sorely needed for millions of Americans who are still struggling to get by more than a year into the coronavirus pandemic. But it's also a significant political asset for the administration as it fends off Republican criticism of the next stage of its economic agenda. GOP lawmakers have ripped President Biden for proposing a series of corporate tax hikes to fund the $2.5 trillion infrastructure proposal, called “the American Jobs Plan.” While Republicans are usually opposed to raising taxes in any context, they've argued that doing so now will undercut the recovery from the pandemic. The exceptional March jobs gain, however, gives the president and the Democrats a boost as they push to kick the recovery into another gear, The Hill says. “It's a once-in-a-generation investment in our economic future — a chance to win the future, paid for by asking big corporations, many of which do not pay any taxes at all, just to begin to pay their fair share,” the president said Friday. “Asking corporate America just to pay their fair share will not slow the economy at all. It will make the economy function better and will create more energy.” After shepherding a $1.9 trillion COVID-19 relief bill through Congress, President Biden is looking to cement a rapid recovery from the pandemic-driven recession and permanently lift the long-term trajectory of the U.S. economy with an eight-year building spree, he says. The administration's proposal, released Wednesday, would fund projects to repair 20,000 miles of roads and 10,000 bridges, expand broadband access to rural and underserved communities, and replace all of the nation's lead pipes and service lines. It also includes investments in research, development and manufacturing, affordable housing, climate resilience, and access to home and community-based care. “I think we were in a decent place in the past but I think the pandemic has really ripped the bandage off all the scars that we've been hiding for decades,” said Jane Oates, a former Obama Labor Department official who serves as president of non-profit WorkingNation. “Building back better would be looking at people for what they can do, the skills they have, rather than looking at just where they had the privilege of attending school,” she said. “People and families who are out of work or working below the level they were working in February of last year – do we leave them out and wait and hope that everything will be okay?” While some Republicans say they're interested in aspects of Biden's plan, its size, expansive scope and the tax hikes to cover its cost make it a non-starter for GOP lawmakers. The measure can still pass through budget reconciliation without any GOP support if Democrats are united on the measure. But Democrats can afford barely any defections in the House and none in the Senate – and Republican lawmakers and conservative groups are reminding voters of the tax hikes in seeking to make centrist Democrats pull support for the measure. “With lockdowns easing and vaccine distribution ramping up, small businesses are reopening and consumer demand is surging. However, the long-term economic outlook remains murky,” said Alfredo Ortiz, president of the Job Creators Network, a conservative non-profit campaigning against the administration's proposal. “Biden's tax plan is a dagger in the heart of small businesses who are finally getting breathing room after one of the toughest years in history,” he said. Most economists, however, expect the U.S. economy to accelerate even faster as COVID-19 vaccinations increase and funding from the administration's relief plan fuels further growth. The surveys used to calculate the March jobs report took place the week Biden signed the bill and before any new aid was disbursed. Orin Klachkin and Gregory Daco of Oxford Economics said in a Friday analysis that the U.S. is on track to add more than 6 million more jobs this year. “Looking ahead, the labor market is poised for an impressive run as expanding vaccine distribution, more reopenings, and fiscal stimulus drive a hiring surge,” they wrote. Even so, the U.S. would still be down more than 2 million jobs from pre-pandemic levels, and there roughly 4 million people who left the labor force because of COVID-19 still lack any clear path back in. Biden administration officials say the long road to a full recovery and the deeply unequal impact of the pandemic makes passage of the American Jobs Plan even more urgent. Janelle Jones, chief economist at the Labor Department, cited the increase in the unemployment rate for Asian Americans from 5.1% to 6% in March. “And the rates for Black and Hispanic workers remain high,” she wrote in a Friday analysis. “At the same time, the average duration of unemployment increased by two weeks. We'll need a tight labor market to get them back to work.” So, we will see. The administration and others are citing strong signs of recovery in support of their programs and proposals, but the opposition also is highly energized. The coming fights will continue to be highly significant for producers and should be watched closely as the season emerges, Washington Insider believes.
| Rural Advocate News | Monday April 5, 2021 |
DMC Payments Triggered For February With monthly USDA prices for milk and feed components (corn, blended alfalfa hay, and soymeal) resulting in a National average margin in February of $6.22 per cwt., dairy operations with Tier 1 coverage levels under the Dairy Margin Coverage (DMC) will see payments triggered for levels at $9.50, $9, $8.50, $8, $7.50, $7 and $6.50. Payments under Tier 2 coverage levels are triggered for $8, $7.50, $7, and $6.50. For Tier 1, payments will range from $0.28 per cwt. at $6.50 coverage to $3.28 per cwt. for $9.50 coverage. The Tier 2 payments will range from $0.28 per cwt. for $6.50 coverage and $1.78 per cwt. for $8.
| Rural Advocate News | Monday April 5, 2021 |
China Prominent in USTR Report on Trade Barriers The National Trade Estimates Report on Foreign Trade Barriers issued by the Office of the U.S. Trade Representative (USTR) covers 61 countries, the European Union, Taiwan, Hong Kong and the Arab League, with a note that just because countries are not included in the report, it does not mean they not of concern to the U.S. Not surprisingly, China occupies 35 pages in the 574-page report, with several notations on the Phase One agreement between the U.S. and China. “The Phase One Agreement also includes a commitment by China to make substantial additional purchases of U.S. goods and services in calendar years 2020 and 2021,” the report noted. “Importantly, the Phase One Agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. Since the entry into force of the Phase One Agreement in February 2020, the United States continues to engage China as issues arise and will continue to monitor developments closely.” The report noted several areas relative to agriculture where progress has been made, but still concluded, China remains a difficult and unpredictable market for U.S. agricultural exporters, largely because of inconsistent enforcement of regulations and selective intervention in the market by China's regulatory authorities. The failure of China's regulators to routinely follow science-based, international standards, and guidelines further complicates and impedes agricultural trade.” The report also focuses on China's overcapacity in several areas, their intellectual property rights actions, technology transfers and more.
| Rural Advocate News | Monday April 5, 2021 |
Monday Watch List Markets Early Monday, traders will be checking the latest weather forecasts and will pause at 8 a.m. CDT Monday to see if there is any export sales news from USDA. USDA's weekly report of grain inspections is set for 10 a.m., followed by an update of winter wheat conditions in the first Crop Progress report of 2021 at 3 p.m. CDT. Weather Some isolated showers will dot the area from Nebraska to Michigan on Monday. Otherwise primary crop areas will remain dry and very warm.
| Rural Advocate News | Friday April 2, 2021 |
Biden Announces Infrastructure Plan President Biden released a $2 trillion infrastructure plan that will address needs in rural America that agricultural stakeholders have been asking Washington to address. The Hagstrom Report says the proposal will cover many traditional infrastructure projects like roads, bridges, and inland waterways. The plan will also attempt to reduce greenhouse gas emissions. But the big benefit to rural America will include trying to bring high-speed broadband service to the most remote parts of rural America. Ag Secretary Tom Vilsack says, “The plan promises to close the broadband gap in rural America for millions of Americans, something that’s vital for health care, education, and employment in the digital age.” The package would be partly financed by increasing the corporate income tax rate from 21 to 28 percent. The rate increase has already generated growing opposition in the business world and among many lawmakers on Capitol Hill. The U.S. Chamber of Commerce and the Business Roundtable have already rejected the idea of raising the corporate tax rate. The Chamber says the plan will slow the country’s economic recovery from COVID-19 and reduce global competitiveness. ********************************************************************************************** Hog Slaughter Line Speed Rule Tossed Out A federal court invalidated a Trump-era rule that allowed hog slaughter plants to run without line speed limits. The United Food and Commercial Workers Union filed a lawsuit against the USDA challenging a 2019 rule change that allowed faster slaughter speeds. The union said in its lawsuit that the change made working conditions unsafe for line employees. Reuters says the ruling from a Minnesota federal judge won’t be received well by the U.S. pork industry, which is trying to rebuild supplies of meat after COVID-19 closed slaughterhouses last year. Workers at Seaboard Foods, the second-largest pig producer in the country, told Reuters that faster line speeds increased worker injuries at the plant. The Biden Administration, which promised to make worker safety a priority, withdrew a Trump proposal to allow all poultry plants to work at faster-than-established line speed limits. The pork rule was going to be more difficult to reverse because it was already in effect. Food & Water Watch, a U.S.-based environmental group, calls the ruling “a resounding victory for the safety of plant workers.” Senior staff attorney Zach Corrigan adds that “This decision should send a signal to the Biden administration that it should reverse course and consider every aspect of those rules.” ********************************************************************************************** Weekly Ethanol Production Rises While Inventories Drop The Energy Information Administration says ethanol output surged before last week while inventories shrank. Ethanol production increased to an average of 965,000 barrels a day in the week ending on March 26. That’s up from the 922,000 barrels produced daily during the previous week. The Midwest, by far the largest producing region, averaged 917,000 barrels per day, up from 876,000 a week earlier. Gulf Coast production jumped to an average of 18,000 barrels per day from 14,000 barrels. The East Coast ethanol output didn’t change from week to week, staying at an average of 12,000 barrels a day. Government data also shows West Coast production staying at 9,000 barrels. The Rocky Mountain region was the only one that saw its production drop, averaging around 9,000 barrels a day. In the meantime, U.S. stockpiles of ethanol dropped to 21.14 million barrels in the week ending on March 26. The Energy Information Administration says that’s down from 21.809 million a week earlier and the lowest since the seven days that ended on November 20. ********************************************************************************************** AFIA Applauds Vilsack Enthusiasm for TPA The American Feed Industry Association commends Ag Secretary Tom Vilsack for his leadership in asking Congress to renew Trade Promotion Authority legislation. AFIA’s President and CEO Constance Cullman says the animal feed and pet food industries are encouraged by Secretary Vilsack’s recognition of the importance of renewing TPA and is hopeful that the Biden administration intends to take an active and supportive position in renewing it. “As trade in the animal food sector continues to grow, we applaud Secretary Vilsack for standing behind U.S. agriculture and being the first within the administration to express both the need and support for TPA renewal.” The Trade Promotion Authority allows the U.S. trade representative to enter trade discussions with negotiating positions and priorities already agreed upon by Congress, which provides potential trading partners with the confidence that Congress will likely ratify any final agreement. TPA is not a new idea; it’s been utilized during presidential administrations going back to 1974 and has only been authorized four times. As the administration focuses on domestic issues, it’s not clear if it will request TPA renewal before the deadline this summer. ************************************************************************************ CFTC Charges Washington State Rancher and Feedyard in $233 Million Scheme The Commodity Futures Trading Commission filed a civil enforcement action in the U.S. District Court in eastern Washington state. The action charges Easterday Ranches, Incorporated, a Pasco, Washington-based cattle feedyard, and Cody Easterday, the co-owner and former president of Easterday Ranches, for engaging in cattle fraud in connection with the sale of more than 200,000 non-existent head of cattle to a beef processor. Easterday is also charged with making false statements to an exchange and violating exchange-set position limits. The CFTC complaint seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans to Easterday, and a permanent injunction against further violations of the Commodity Exchange Act and the CFTC. According to the complaint, Easterday accumulated more than $200 million in losses over a decade from speculative trading in the cattle futures market. To meet margin calls, Easterday came up with a scheme to defraud one of his biggest business partners, a South Dakota-based beef producer. Easterday Ranches submitted fake invoices and reimbursement requests relating to more than 200,000 head of cattle it never actually purchased or raised on the producer’s behalf. Easterday received more than $233 million to which it wasn’t entitled. ********************************************************************************************** 20 States Support NAMI Against Prop 12 A total of 20 states filed a brief with the Supreme Court supporting the North American Meat Institute’s petition challenging the constitutionality of Proposition 12 in California. “The governments of nearly half the states agree that if California is allowed to apply its laws of conduct in other states, a single state will dictate policies in all others,” says Meat Institute President and CEO Julie Anna Potts. “That will encourage a patchwork of regulations and threaten the free flow of interstate commerce.” The brief before the Supreme Court says, “If Prop 12 freely permits California to impose regulations directly on out-of-state commercial conduct and thereby fosters inconsistent state regulatory obligations, it enables tit-for-tat regulatory conflict.” They say the ultimate result may be a transformation of America’s current integrated national market into a patchwork of regulatory regions. The main question in the case is whether the U.S. Constitution permits California to extend its police power beyond its territorial borders by banning the sale of wholesome pork and veal products sold into California unless out-of-state farmers restructure their facilities to meet animal-confinement standards dictated by California.
| Rural Advocate News | Thursday April 1, 2021 |
USDA Releases Prospective Planting, Grain Stocks Reports Producers intend to plant an estimated 91.1 million acres of corn in 2021, up less than one percent from last year, according to the Prospective Plantings report released by USDA's National Agricultural Statistics Service. Planted acreage intentions for corn are up or unchanged in 24 of the 48 estimating states. Soybean growers intend to plant 87.6 million acres in 2021, up five percent from last year. If realized, this will be the third-highest planted acreage on record. Compared with last year, planted acreage is expected to be up or unchanged in 23 of the 29 states estimated. NASS also released the quarterly Grain Stocks report. Corn stocks totaled 7.70 billion bushels, down three percent from the same time last year. On-farm corn stocks were down nine percent from a year ago, but off-farm stocks were up five percent. Soybeans stored totaled 1.56 billion bushels, down 31 percent from March 1, 2020. On-farm soybean stocks were down 41 percent from a year ago, while off-farm stocks were down 22 percent. ************************************************************************************ Growth Energy: To Decarbonize Transportation, America Must Turn to Biofuels Following President Joe Biden’s announcement of a nationwide infrastructure package, Growth Energy says the plan overlooks the need to expand low carbon biofuels, like ethanol. The American Jobs Plan seeks to improve highways, bridges, ports, airports and transit systems. The plan also seeks to improve drinking water, the electric grid, and broadband. In total, the plan will invest about $2 trillion this decade. Growth Energy CEO Emily Skor says, “it’s disappointing” the American Jobs Plan doesn’t expand biofuels. Earlier this year, a new report from the Rhodium Group, found that biofuels are an essential element of the path to a net-zero future by 2050. However, the plan does call for $35 billion in research priorities, including offshore wind, biofuels and electric vehicles. And Agriculture Secretary Tom Vilsack says the plan "will help us rebuild our economy and rural communities.” Vilsack adds that the Department of Agriculture is central to President Joe Biden’s strategy to build a strong economy. ************************************************************************************ Biofuels Coalition Welcomes Amicus Briefs in Supreme Court RFS Case A coalition of farm and biofuels groups welcome a Supreme Court brief filed by U.S. states supporting the coalition's arguments in a case regarding small refinery waivers. The Renewable Fuels Association, National Corn Growers Association, National Farmers Union, and American Coalition for Ethanol offered thanks to Iowa, Nebraska, Illinois, Michigan, Minnesota, Oregon, South Dakota, and Virginia for filing the brief. HollyFrontier and other refiners are asking the Supreme Court to overturn the January 2020 appeals court ruling in which the court found EPA exceeded its authority in granting certain small refinery waivers. The brief from the states concludes that “the judgment of the court of appeals should be affirmed.” The coalition says, “As the filings make clear, the exemptions have had a devastating effect on rural economies and on the demand for all types of renewable fuels.” The coalition adds, “we are very grateful that these states and other renewable fuel and agriculture interests have stepped up to endorse the decision as well.” ************************************************************************************ Lawmakers Introduce ACRE Act A group of House lawmakers Thursday introduced the Agriculture Civil Rights and Equality Act, or ACRE Act. The legislation would prohibit officials at the Department of Agriculture from discriminating or providing preferential treatment to any person on the basis of race, color, national origin or sex. The prohibitions would apply to USDA hiring, contracting, and programming, including programs administered by states, territories and universities using USDA funds. The bill comes just weeks after President Joe Biden signed a massive, partisan $1.9 trillion spending package into law that includes a $5 billion agriculture debt relief program earmarked exclusively for non-white farmers. Wisconsin Republican, Representative Tom Tiffany, says, “it is fundamentally unfair for the government to treat farmers differently based on immutable characteristics.” Utah Democrat, Representative Burgess Owens, adds, “I’m deeply concerned that Congress feels emboldened to perpetuate a modern-day form of racial segregation rather than provide relief to those who need it most.” ************************************************************************************ AFBF Opposes Elimination of Stepped-Up Basis and New Capital Gains Taxes at Death American Farm Bureau Federation President Zippy Duvall says the organization objects to a proposal by several lawmakers to tax unrealized capital gains at death and roll back the stepped-up basis on those capital gains. Duvall says, “Taxing capital gains when a loved one passes away would have a devastating impact on farm and ranch families.” Even more so, Duvall says, if the stepped-up basis tool is taken out of the toolbox. Stepped-up basis encourages families to grow their businesses and pass them on to another generation, and elimination could force those families to sell their farms just to pay the taxes. The value of many farms is tied up in land and equipment. AFBF says cash flow on most farms is much too small to pay large capital gains taxes. Farm Bureau says these taxes would cause further consolidation in agriculture, with small farms more likely to be forced out of business by the tax liability. ************************************************************************************ PMA, United Fresh, Announce Agreement to Form Combined Trade Group Leaders of the Produce Marketing Association and United Fresh Produce Association have reached an agreement to create a new global trade association. The agreement will combine the two groups. The two associations will continue to operate as independent organizations through 2021, with the new association to be launched January 1, 2022. A United Fresh spokesperson says, ”This agreement reflects the ongoing commitment of both associations to deliver the highest level of value to members.” Over the past several months, PMA CEO Cathy Burns and United Fresh CEO Tom Stenzel have worked with a group of Board leaders from each association to develop the strategic commitments for the new association. The new association will be led jointly by Burns and Stenzel as Co-CEOs throughout 2022. After that time, Burns will become the sole CEO. Over the coming months, Burns and Stenzel will work with their staff teams and Board leaders to build out the new organization.
| Rural Advocate News | Thursday April 1, 2021 |
Washington Insider: Some Hope for Ag Worker Program Bloomberg is reporting this week that a bill that would create a program to allow agricultural workers to earn legal immigration status has the potential to break through a partisan logjam in the Senate — if it is revised to address some “GOP concerns.” The Farm Workforce Modernization Act which passed the House earlier this month, would overhaul the immigration system for farmworkers and alter the H-2A temporary agricultural visa program, cementing a stable workforce for employers and more protections for laborers. “The bill has a lot of merit. I think there's an opportunity to improve it yet,” said Sen. Roger Marshall of Kansas, the top Republican on the Senate subcommittee that oversees conservation, climate, forestry, and natural resources matters. “I support the overall concept, but it needs some tweaks,” he said at the Capitol last week. Backers of the legislation also would have to bring on board Republicans who see a greater priority in stemming the growing numbers of immigrants coming over the border with Mexico, Bloomberg said. Most of the nation's roughly 2.4 million farmworkers are undocumented according to administration estimates — a problem for them, as well as for the farms and dairies that often struggle to find workers. “If this bill becomes law, these workers can avoid the lingering fear of deportation or their children's concern about whether their parents will come home from work each night,” said Janet Murguia, president and CEO of UnidosUS, a Latino civil rights organization. The House passed the measure spearheaded by Reps. Zoe Lofgren, D-Calif., and Dan Newhouse, R-Wash., on March 18 with 30 Republicans voting in favor — a wider margin of GOP support than for the American Dream and Promise Act that passed the same day. Sens. Michael Bennet, D-Colo., and Mike Crapo, R-Idaho, plan to introduce the bill's companion, with Bennet optimistic more Republicans will sign on to fix systemic flaws in the farmworker immigration system. Republicans and Democrats who recognize the system's problems introduced a bill in 2019 that was passed by the House but died in the Senate Judiciary Committee. Industry groups, such as the United Fresh Produce Association, say reforms have been needed for decades. Kam Quarles, CEO of the National Potato Council, points to the Democratic-controlled Senate and White House as reasons the reintroduced bill could fare better this year — along with lessons learned from the coronavirus pandemic. In its current iteration, the Farm Workforce Modernization Act would give agricultural workers and their spouses and minor children a path to gain legal status through continued employment, with a path toward a green card. It would offer as many as 20,000 H-2A visas annually for three years for year-round agricultural employers, such as those in the dairy industry. The White House backed Lofgren and Newhouse's version of the bill. Many farm and food trade groups, including the International Dairy Foods Association and the National Association of State Departments of Agriculture, also support the legislation. “Passing this bill would give these farm workers the chance to earn legal status and bring more certainty to farming operations across the country,” Senate Majority Whip Dick Durbin, D., Ill., said. He urged the Senate to join the House in taking up the measure. Several farm-state Democrats point to a need for immigration system changes with the office of Sen. Sherrod Brown, D-Ohio, calling for “efforts to fix the system, including creating a pathway to citizenship for individuals and addressing inequities in guest worker programs.” However, top Republican senators are mixed on the legislation. Senator Crapo doesn't back the House version, press secretary Melanie Lawhorn said, adding that he and Bennet are working to put finishing touches on their own language. House Agriculture Committee ranking member Glenn Thompson, R-Pa., who voted for the original bill, suggested revisions, such as extending the time period required as an agricultural employee to maintain visa status and cutting a provision that would include H-2A workers under U.S. federal law that protects some workers with set employment standards. Sen. Tommy Tuberville, R-Ala., an Agriculture Committee freshman, plans to discuss the bill and weigh support for it at the Alabama Farmers Federation, his state's largest farm organization. “I told them, when I got on this committee, I'm going to bring everything to them,” he said at the Capitol. “I think they'll be pretty strong with it.” However, Senate Agriculture, Nutrition, and Forestry Committee ranking member John Boozman, R-Ark., doesn't see an immediate future for the measure. Republicans have criticized the Biden administration over its immigration policies as migrants—especially unaccompanied children—continue to arrive at the U.S.-Mexico border. “Now is not the time to take up this bill given the ongoing crisis at our southern border,” he said. “Our discussions on immigration must focus on ending the humanitarian crisis and securing the border before we move any other legislation that pertains to this issue.” So, we will see. Immigration continues to be among the hottest of hot button issues, although producers who depend on seasonal labor do provide a strong basis of support. The issue is clearly one producers should watch closely as it is debated Washington Insider believes.
| Rural Advocate News | Thursday April 1, 2021 |
USDA Sets WHIP-Plus Closeout Deadline USDA's Farm Service Agency (FSA) has set April 16 as the deadline to have all Wildfire and Hurricane Indemnity Program-Plus (WHIP-Plus) applications finalized and approved for payment, effectively the closeout for the program. A signup deadline of October 30, 2020, was set for the program relative to 2018 and 2019 losses, and the April 16 date now marks a deadline for county FSA offices to have those applications finalized.
| Rural Advocate News | Thursday April 1, 2021 |
Vilsack Signals TPA Renewal Request Coming There has been little from the Biden administration on the prospect for renewing Trade Promotion Authority (TPA), but USDA Secretary Tom Vilsack on Tuesday made clear the administration will seek its renewal. Renewing TPA is “the only way, eventually, for us to have trade agreements that create that balance,” Vilsack said, noting there was a “very delicate balance” needed on several issues in a trade agreement. “So I'm hoping that Congress, during the course of this year, begins to get serious about resuming and extending Trade Promotion Authority, which will then give us the opportunity to complete negotiations.” Under TPA, an administration can negotiate trade deals and present them to Congress for an up-or-down vote with no amendments. Vilsack said at an event organized by the Virginia governor's office that it was a key for U.S. trade policy ahead since it prevents there from being “535 new negotiators” on trade deals—the 100 members of the U.S. Senate and the 435 House members. Vilsack also focused on enforcement of the U.S.-Mexico-Canada Agreement (USMCA) in his remarks, noting the coming Mexican restrictions on imports of GMO corn. However, last week Vilsack noted that the coming rules in Mexico would not apply to corn imported by the country for feed use, but only that destined for human consumption. As for a U.S.-UK or U.S.-European Union (EU) trade deal, Vilsack stressed the need for a “science-based” set of trade rules. The British Ambassador to the U.S., Dame Karen Pierce, also addressed the meeting, noting their exit from the EU will potentially ease up the ability of the reaching a trade deal with the U.S. While not signaling a shift on GMOs, Pierce did state she believed that gene-edited products should be treated differently and not regulated like GMO crops. “We've requested public input on a possible change to regulations,” she noted. This appears to mark some of the first comments from the Biden administration on TPA and its renewal as the current authority expires in July.
| Rural Advocate News | Thursday April 1, 2021 |
Thursday Watch List Markets USDA's weekly export sales report, weekly U.S. jobless claims and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CDT Thursday. ISM's index of U.S. manufacturing for March is set for 9 a.m., followed by natural gas inventory from the Energy Department at 9:30 a.m. A monthly Fats and Oils report from NASS at 2 p.m. includes the soybean crush for February. U.S. futures markets are closed Friday. Weather With a front moving off the East Coast, quiet conditions are expected across the primary growing regions for Thursday, though there are some lake-effect snow showers in the eastern Great Lakes. Temperatures will be below normal for most of these areas as well. Temperatures below freezing Thursday morning and Thursday night could produce some light damage to vulnerable winter wheat.
| Rural Advocate News | Wednesday March 31, 2021 |
Farmers Satisfaction with Inputs Has Room for Improvement A recent report from Biome Makers finds 84 percent of farmers have not found an input product yet that they find completely satisfying. The report, 2021 Trends and Challenges in Agriculture, is based on a survey conducted at the beginning of the year among nearly 100 farmers and agronomists worldwide. The report found ag-input satisfaction rates have ample room for improvement, and the costs of ag-inputs weigh heavily on farmers, as 39 percent selected ag-inputs as one of their top two major operation costs. According to the study, sustainable practices are increasingly being embraced and implemented by farmers. Cover crops, in particular, are one of the top sustainable management practices that 45 percent of farmers expressed a willingness to adopt. Climate change continues to be a considerable challenge this season, causing a variety of issues for 68 percent of farmers. However, only about a third of them have reported any involvement in carbon farming initiatives. ************************************************************************************ Iowa State Releases Custom Rates Costs Survey Iowa State recently announced results of the 2021 Iowa Farm Custom Rate Survey. The survey covers the amounts charged and paid for common crop and livestock services in the state. Tillage, planting, harvesting, manure hauling and livestock transportation are all included. Compared to last year, most custom rates saw a decline except for the cost of farm labor. The cost of combining corn ranged from $22 to $45 per acre, with an average of $35.10 per acre. The cost of combining soybeans ranged from $22 to $46 per acre, with an average of $34.20. The cost to mow hay ranged from $8 to $15 per acre. The average cost for baling small square bales was $.59 per bale, $9.35 for large square bales, $10.80 for large round bales without wrapping, and $13.20 for large round bales wrapped. Meanwhile, 14 percent of the respondents perform custom work, 16 percent hire work done, and 45 percent indicated they do both. ************************************************************************************ AEM Welcomes Legislation to Create Executive Branch Manufacturing Post The Association of Equipment Manufacturers applauds legislation that would create the Office of Manufacturing and Industrial Innovation Policy in the Executive Office of the President. A bipartisan group of senators this week introduced the bill, called the Office of Manufacturing and Industrial Innovation Policy Act. AEM President Dennis Slater says the new proposed office “will help ensure America's global leadership in manufacturing.” AEM was the first industry group to call for the creation of a Chief Manufacturing Officer and the development and execution of a national manufacturing strategy. Last spring, equipment manufacturers called on the federal government to develop and implement such a strategy. U.S. equipment manufacturers represent one in eight manufacturing jobs in the United States and support 2.8 family-sustaining jobs, highlighting the need for the office, according to AEM. Slater adds, “We urge lawmakers in both parties to support this important legislation and increase our nation's global manufacturing competitiveness." ************************************************************************************ Interior Disburses Nearly $249 Million to Gulf States for Coastal Conservation The Department of the Interior Tuesday announced nearly $249 million in Fiscal Year 2020 energy revenues to the four offshore Gulf oil and gas producing states. Those states are Alabama, Louisiana, Mississippi and Texas. The funds, disbursed annually based on oil and gas production revenue, are used to support coastal conservation and restoration projects, hurricane protection programs, and activities to implement marine and coastal resilience. The Gulf of Mexico Energy Security Act of 2006 created a revenue-sharing model for oil and gas-producing Gulf states to receive a portion of the revenue generated from oil and gas production offshore in the Gulf of Mexico. The act also directs a portion of revenue to the Land and Water Conservation Fund. The announcement represents the second-largest disbursement since the department first began paying revenues to states in 2009. Since enacted, Interior has disbursed over $1 billion to the coastal states to further conservation efforts of critical coastal wildlife habitats. ************************************************************************************ USDA Announces Oscar Gonzales as Assistant Secretary for Administration The Department of Agriculture this week announced the appointment of Oscar Gonzales as Assistant Secretary for administration. Gonzales, nominated by President Joe Biden, previously served in the Obama administration in several senior positions with USDA, including Deputy Assistant Secretary for administration. He also served as the California State Executive Director for USDA's Farm Service Agency, where he oversaw FSA programs across 58 counties in the nation's largest agricultural producing state. His government background includes working for top California leaders, including Governor Gray Davis and others. Most recently, Gonzales served as Vice President for Government Relations, Western States, for Goldman Sachs. Before that, he was Vice President for Community and Government Relations for Aura Financial. Agriculture Secretary Tom Vilsack says Gonzales "has dedicated his life and career to fighting for underserved and marginalized communities." Vilsack says Gonzales will help USDA ensure equity across the department. Prior to serving in government, Gonzales worked with various nonprofit organizations. ************************************************************************************ Alltech ONE Ideas Conference returns virtually in 2021 Alltech’s global agri-food conference, the Alltech ONE Ideas Conference, returns virtually on May 25–27, 2021. Now in its 37th year, Alltech’s flagship event is an industry resource, with innovative ideas, inspiration and motivation from world-class speakers. The virtual platform provides on-demand tracks, streaming keynote presentations and live Q&A chats with select speakers. And this year, it will also offer an interactive networking experience, allowing attendees to connect with their peers from around the world. This year’s virtual event features sessions that will uncover the challenges and opportunities in the aquaculture, beef, business, crop science, dairy, equine, health and wellness, pet, pig, and poultry sectors. Each May, the Alltech ONE Ideas Conference typically attracts over 3,500 attendees from more than 70 countries to Lexington, Kentucky. In 2020, the event transformed into the Alltech ONE Virtual Experience and brought more than 21,500 registrants from 126 countries together online. Registration for the Alltech ONE Ideas Conference is now open at one.alltech.com.
| Rural Advocate News | Wednesday March 31, 2021 |
Washington Insider: GOP Senator Probes San Francisco Fed Research on Climate, Race The Hill is reporting this week that the top Republican on the Senate Banking Committee asked the Federal Reserve Bank of San Francisco to explain several recent research bulletins and seminars on racial economic disparities and climate change. Sen. Pat Toomey, R-Pa., asked Mary Daly, president of the San Francisco Fed, to provide a briefing and a decade of records related to the reserve bank's economic research activities. “The Federal Reserve may pursue mission creep or welcome itself to political capture. But such activities are inconsistent with its statutory responsibilities,” Toomey argued. The San Francisco bank is one of the Federal Reserve system's 12 institutions, each responsible for conducting monetary and regulatory activities within a certain U.S. region. Each reserve bank is responsible for bank supervision and examination, lending to financial institutions, operating Fed services and reporting on the unique business environment and development within its respective district. The Fed system is funded with fees paid by banks and contributes billions of dollars annually to the Treasury. Reserve banks also publish economic research conducted by staff economists on a wide range of topics relevant to the Fed's mandate to foster maximum employment, stable prices and a secure banking system. Toomey argues, however, that “a sizable portion” of San Francisco Fed research focuses “on matters unrelated to monetary policy and how these impact narrow subgroups of people.” He specifically cited two San Francisco Fed blog posts on racial equity and a series of virtual seminars on the climate-related economic issues hosted by the bank. The San Francisco Fed has also published recent research on capital flow surges, the economic impact of school closures, inflation, community bank resilience and differences between the U.S. and other advanced economies in recovering from the COVID-19 recession. While Toomey criticized research from other reserve banks, he wrote that the “seemingly sudden and alarming inclusion of social research” at the San Francisco Fed “risks being of a bitterly partisan nature” and warranted a probe from the Banking panel. He asked Daly to provide a briefing for Banking Committee staff, all records related to the San Francisco Fed's climate seminar series, all documents related to climate change and racial justice research dating back to July 1, 2019, and 10 years of reserve bank's annual expenses on research and community outreach. “We have received and are reviewing Sen. Toomey's letter, and we look forward to discussing the contents with Sen. Toomey's office," a spokesman for the San Francisco Fed said. The Hill said that Toomey's letter “opens another front in the battle between Republicans and the Fed over the central bank's growing focus on climate change and other social issues GOP lawmakers consider irrelevant to its mission and Democrats consider essential.” Republicans have fiercely criticized the Fed for creating committees and investing in research related to the potential climate-related risks facing the banks it supervises. The Fed also has joined a global network of central banks and financial supervisors focused on climate change. Fed leaders have insisted that the bank will play no role in setting climate policy for the U.S., but rather focus on how climate change effects bank supervision. Even so, Republicans fear the bank could eventually steer credit away from certain energy sources — something the Fed has ruled out ever doing. Toomey and GOP lawmakers have also blasted moves toward climate and diversity policy from the Treasury Department and Securities Exchange Commission (SEC). Treasury Secretary Janet Yellen has faced intense blowback from Republican lawmakers after declaring climate change “an existential threat” that required action from the department. She has also opened the door to fiscal and regulatory policy designed to limit carbon emissions, but has not explained what form that would take. Gary Gensler, Biden's pick to lead the SEC, also irked Republicans when he voiced support for tougher climate, diversity and political spending disclosure rules for publicly traded firms. In fact, there is considerable intense debate over a number of Congressional and executive research topics—as well as Democratic interest in using the Congressional Review Act to overturn controversial Department of Health and Human Services rules passed in the final days of the Trump presidency. Reps. Raja Krishnamoorthi, D-Ill., and Anna Eshoo, D-Calif., on Monday introduced a resolution of disapproval over the HHS "sunset" rule, which requires all 18,000 agency regulations to be reviewed every 10 years, or else they expire. However, provisions of that are available for only the first 60 legislative days of the new Congress and would end likely sometime in April. The resolution currently has no Senate co-sponsors. The CRA was a legislative tool favored by Republicans in the early days of the Trump administration and was used to strike down 14 regulations from the Obama era. But Democrats have been more reluctant to use it, partly due to concern over statutory language in the CRA that blocks the relevant agency from crafting another rule that's substantially similar. So, we will see. Clearly the administration and the Congress are interested in implementing changes, including prominently program changes to cut back on climate change—important proposals that should be watched closely as they are considered, Washington Insider believes.
| Rural Advocate News | Wednesday March 31, 2021 |
WH Group Cites Illegal ASF Vaccine Use As Factor Tempering Chinese Hog Herd Expansion The use of illegal African Swine Fever (ASF) vaccines in 2020 was a factor which tempered the efforts to rebuild China's hog herd, according to the Ma Xiangjie, president of Henan Shuanghui Investment and Development, WH Group's domestic unit. In remarks to reporters after the release of WH Group annual earnings, Ma said commented on impact of illegal vaccines. “Since the second half of last year some pig producers in China, especially south of the Yangtze river, used some immature pig vaccines and caught African Swine Fever again," said Ma. The WH Group processed 46% of its hogs in China in 2020 compared with 2019 due to tight supplies, Ma, noted, with capacity utilization at its plants reduced to 30%. But imports of 700,000 metric tons of pork, beef and poultry helped make up with shortfall, with 70% of the imports coming from the U.S. Ma said the firm's Chines hog price forecast has been raised due to the impact from “toxic vaccines” and said the company was expecting 2021 meat imports rise as the firm was working to expand the range and volume of products from the U.S.
| Rural Advocate News | Wednesday March 31, 2021 |
US Has Suspended Trade Relations With Myanmar The U.S. suspended trade relations with Myanmar after soldiers and police backing the military coup there killed more than 90 people. U.S. Trade Representative Katherine Tai said Monday the U.S. was reviewing trade benefits for the country under the now-lapsed Generalized System of Preferences (GSP). The U.S. imported slightly more than $1 billion worth of goods from the country, including around $621 million of apparel and footwear.
| Rural Advocate News | Wednesday March 31, 2021 |
Wednesday Watch List Markets At 7:15 a.m. CDT Wednesday, the private firm, ADP, will have an estimate of U.S. payrolls for March, an early hint for Friday's unemployment report. The U.S. Energy Department will have a report on weekly inventories at 9:30 a.m. USDA's Prospective Plantings report and March 1 Grain Stocks are set for 11 a.m. CDT. As usual, the latest weather forecasts and any trade news will also be noticed. Weather A cold front situated across the Delta and Midwest will move southeastward with moderate scattered showers on Wednesday. Behind the system, temperatures are falling well below normal, inducing some freeze potential for portions of the Plains through Thursday morning and the eastern Midwest and Southeast through Friday morning. Temperatures will be on a rising trend thereafter. This could briefly affect vulnerable winter wheat, but the short duration should not have a profound impact.
| Rural Advocate News | Tuesday March 30, 2021 |
Consumers Plan Record Spending on Easter Consumers plan to spend an average of $179.70 this Easter, the highest figure on record, according to survey results released by the National Retail Federation. A total of 79 percent of Americans will celebrate the holiday and spend a collective $21.6 billion, down slightly from last year's pre-pandemic forecast of $21.7 billion. NRF President and CEO Matthew Shay says, "There is a lot of momentum heading into the Spring and holiday events like Easter." The momentum is fueled by positive trends in vaccinations and growing consumer confidence. Easter gifts, food and candy are the biggest drivers of growth this year. Consumers plan to spend an average of $31.06 on gifts, $52.50 on food and $25.22 on candy. As more and more individuals become vaccinated, consumers plan to celebrate in ways they might have missed last year due to COVID-19. Consumers plan to celebrate by cooking a holiday meal, visiting with family and friends, planning an Easter egg hunt or attending church. ************************************************************************************ Fertilizer Prices Up Dramatically Fertilizer prices are up dramatically this spring, increasing input costs for growers. Data from the Department of Agriculture shows prices are up between 17 and 57 percent since the fall. David Widmar of Agricultural Economics Insights says that while nitrogen often gets the most attention, phosphorus prices are up the most. Anhydrous ammonia and urea are up 37 percent from the fall, but considerably smaller increases over Spring 2020. Meanwhile, liquid nitrogen prices are only up nine percent over last year, but 20 percent higher than last fall. The increase in fertilizer prices means fertilizer expenses are up $29 per acre than last spring, or 30 percent higher. However, Widmar notes, the increases follow a strong downturn a year ago, adding prices are up from historic lows and, for the most part, remain well below the levels of 2011-2014. The exception, however, is phosphorus fertilizer, up 51 percent compared to last fall. ************************************************************************************ Interior Joins Government-Wide Effort to Advance Offshore Wind The U.S. Interior Department is part of the Biden Administration's effort to boost renewable energy, including offshore wind generation. Interior Secretary Deb Haaland joined leadership of Energy, Commerce and Transportation at a White House forum Monday on the topic. The event included a commitment to establish a target to deploy 30 gigawatts of offshore wind by 2030, creating nearly 80,000 jobs. At the forum, leaders discussed key opportunities and challenges to ensuring domestic economic and employment benefits of aggressively expanding offshore wind. Interior announced the final Wind Energy Areas in the New York Bight – an area of shallow waters between Long Island and the New Jersey coast to identify the offshore locations that appear most suitable for wind energy development. Additionally, the department is initiating the environmental review of the third commercial scale offshore wind project by announcing a Notice of Intent to prepare an Environmental Impact Statement for Ocean Wind, LLC’s proposed project offshore New Jersey. ************************************************************************************ USDA Restricts PACA Violators from Operating in the Produce Industry The Department of Agriculture Monday announced sanctions on five produce businesses. The sanctions are in response to the businesses failing to meet obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act, or PACA. The sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business. The businesses are Urban Fresh Produce of California, Sunrise Produce of Maryland, PFI Express and Temple Turmeric of New York and Eli Gonzalez Distributors of Texas. PACA provides an administrative forum to handle disputes involving transactions, which may result in a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace. ************************************************************************************ Fuel Prices Taper Off The national average price of gas and diesel fell for the second straight week, after a constant rise to start the year. GasBuddy reports the national average price of gasoline fell 2.7 cents to $2.84 a gallon, with diesel prices down 1.2 cents to $3.08 a gallon. GasBuddy’s Patrick De Haan says, "increases have largely tapered off, and we're now seeing decreasing prices in most areas of the country, thanks to oil prices that have moderated for the time being." However, demand is rising. According to a new dataset released by GasBuddy, U.S. gasoline demand continued to rise for the week ending March 27, as Americans continued to get outside amidst better conditions and fewer travel restrictions. National gasoline demand rose 1.95 percent. Weekly gasoline demand last week again set another new pandemic high, rising to just three percent above the last pre-pandemic figures from mid-March 2020, but still stand down several percentage points from what would be considered normal for late March.
| Rural Advocate News | Tuesday March 30, 2021 |
Washington Insider: Watching for Signs of Recovery Bloomberg is expecting more political fireworks this week as the Biden administration reveals some of the main elements of its coming infrastructure plan. President Joe Biden is expected to describe the “scope and ambition of his plans to expand and reorient the U.S. government, setting the stage for a bitter fight on Capitol Hill that could define his presidency.” Bloomberg said it expects the president will unveil the framework for a major infrastructure-and-jobs program Wednesday in Pittsburgh. Later this week he is expected to offer the first glimpse of his 2022 budget — which promises to redirect federal funds to areas such as climate change and health care. The announcements will include the first concrete details of the administration plan to overhaul federal spending, in a sales pitch without the immediacy of the pandemic emergency that he had for his first package. To succeed, it will have to convince the public and lawmakers on a multi-trillion-dollar investment in infrastructure and social safety nets, along with a revamp of the tax code to help address funding needs and widening inequality, Bloomberg said. “Successful presidents — better than me — have been successful in large part because they know how to time what they're doing,” Biden said Thursday when asked why he was pursuing the massive spending package instead of other legislative priorities, such as gun control. Infrastructure is “the place where we will be able to significantly increase American productivity, at the same time providing really good jobs.” While Biden has made clear his plans will include tax-policy changes to help fund what aides have laid out as a roughly $3 trillion long-term program, how specific he'll be on Wednesday is uncertain. His budget plan also won't include a comprehensive breakdown about the agency-by-agency spending increases the administration is seeking. “What the American people will hear from him this week is that part of his plan, the first step of his plan towards recovery which will include an investment in infrastructure,” said White House Press Secretary Jen Psaki, referring to plans for two separate proposals. “He's going to have more to say later in April about the second part of his recovery plan,” she added, which will include health care, childcare, and other social issues. They're “not quite at the legislative strategy yet,” and “the total package” is still being worked out,” she said. “But he's going to introduce some ways to pay for that, and he's eager to hear ideas from both parties as well,” she said. Bloomberg also says that a vehicle “miles traveled tax is no longer on the table as an option to pay for infrastructure projects.” After Transportation Secretary Pete Buttigieg said in an interview on Friday that a vehicle miles traveled tax “shows a lot of promise,” a spokesperson for the department countered his comment. “The Secretary was having a broad conversation about a variety of ways to fund transportation,” Ben Halle, a spokesman for the Department of Transportation, said. “To be clear, he never said that VMT was under consideration by the White House as part of this infrastructure plan—and it is not.” In a political counter move by Democrats, Postmaster General DeJoy's 10-year plan for the USPS, Rep. Raja Krishnamoorthi, D-Ill., on Friday introduced a bill that seeks to “ensure that the USPS maintains the 2-3 day standard delivery option,” the lawmakers said. The move came on the same day that the Postal Service filed a notice to its regulatory board seeking to push back the delivery time for priority mail and change the classification of printed materials to competitive products. The Postal Regulatory Commission will review the changes before they are scheduled to take effect, Bloomberg said. So, we will see. The administration's antivirus efforts and its new economic proposals are still big news items with the capacity to provide relief in the form of new jobs and economic growth — signs that are being watched closely as they appear, Washington Insider believes.
| Rural Advocate News | Tuesday March 30, 2021 |
Vilsack: Mexico GMO Restrictions Won't Affect Feed Asked how he will respond to Mexico's plan to stop importing genetically modified (GM) corn, USDA Secretary Tom Vilsack said Friday that Mexico is only considering such a ban for corn used in human food products, not animal feed. He called the distinction a “big difference here to producers in the United States.” He has been in contact with his Mexican counterpart and U.S. Trade Representative Katherine Tai on the GM corn issue, noting the U.S.-Mexico-Canada Agreement (USMCA) includes provisions for formal consultations, and, if needed, a dispute resolution process. However, he stressed, “we're not anywhere near there yet,” referring to invoking dispute settlement provisions of the trade pact. “We're just having these conversations.” Bottom line, Vilsack said, “It is important to distinguish between what Mexico is currently thinking about doing, and the fact that it's not going to have as great an impact it would if it was everything all at once, all right now,” referring to fears of a broader GM corn import ban. This appears to clarify a situation which has caused major concern on the potential for U.S. corn and soybean exports to Mexico to be affected.
| Rural Advocate News | Tuesday March 30, 2021 |
Vilsack Outlines Expectations On Climate Efforts USDA Secretary Tom Vilsack said that climate-smart ag policies will include initial moves to harness existing conservation programs like the Conservation Reserve Program (CRP). “Congress has basically authorized and approved up to [25] million acres to go into that program,” he explained. The data on what is currently in CRP is 20.8 million at the end of January, Enrolling an additional 4 million acres to meet the cap can “begin the process of addressing some of the challenges that we face” related to climate, he said. USDA may work with states to come up with ways to encourage farmers to enroll more marginal lands in CRP, potentially including additional incentive payments. A key will be ensuring a balance between promoting climate goals and not distorting markets in regions across the country, he added. For CRP and other USDA conservation programs, Vilsack said he hopes to focus them on climate-smart ag practices. “We need to provide incentives, we need to provide resources, we need to provide cost-share for all the activities that are currently taking place and see if we can expand them and build upon them.” Vilsack reiterated that harnessing carbon markets will be another focus and ensuring they serve the needs of farmers will be critical. “You can set up the prototype if you will, or the pilot, and then see how it works,” he said of an ag carbon bank, suggesting the move could tap extra funds from the Commodity Credit Corporation (CCC). Should the pilots prove successful “then we basically go back to Congress and say, 'How can we get this thing ramped up to a point where more and more farmers are participating?'”
| Rural Advocate News | Tuesday March 30, 2021 |
Tuesday Watch List Markets Other than a report on U.S. consumer confidence at 9 a.m. CDT, there are no official reports on Tuesday's docket. Traders will examine the latest weather forecasts and watch for any export sales news that might develop. Trading in grains will likely be quiet ahead of Wednesday's Prospective Plantings and Grain Stocks reports. Weather A cold front from the Great Lakes southwest to the Texas Panhandle will lead to variable temperatures and breezy conditions Tuesday. Precipitation will be minimal, with a few showers in the Texas coast area. Rain becomes more prominent in the eastern Midwest, Delta and Mid-South Wednesday.
| Rural Advocate News | Monday March 29, 2021 |
EPA States Position on RFS Exemptions Before the Supreme Court The Environmental Protection Agency filed a brief with the Supreme Court last week that lays out its new position on the Renewable Fuel Standard. A DTN report says the brief covered EPA’s view of the scope and purpose of the RFS, stating that three refiners who received RFS exemptions in 2017 and 2018 didn’t qualify for them. The U.S. Court of Appeals in Denver ruled that the agency violated the law when it granted the exemptions during the Trump administration. The January 2020 ruling led biofuel groups to push the former administration to apply the ruling nationally. The EPA brief also says that few refiners would be eligible for extensions if the law is followed. The Trump EPA granted 88 small-refinery exemptions between 2016 and 2020. The Tenth Circuit Court remanded three exemptions granted to refiners in Oklahoma, Wyoming, and Utah. In February of this year, the Biden EPA reversed the previous administration’s course and sided with the Tenth Circuit Court’s ruling. Also in the Supreme Court brief, the EPA says the exemptions program was put into the RFS as a “bridge toward eventual compliance” for small refineries. ********************************************************************************************** U.S. Hog Inventory Drops Two Percent The USDA says there were 74.8 million hogs and pigs on U.S. farms as of March first. The Quarterly Hogs and Pigs Report says that the number is down two percent from March 2020, and three percent lower than December first of last year. Among the other key findings, the USDA’s National Ag Statistics Service says of the 74.8 million hogs and pigs, 68.6 million were market hogs, while 6.21 million were kept for breeding. Between December and February, producers weaned 33.3 million pigs, down one percent from the same period a year earlier. U.S. hog and pig producers weaned an average of 10.94 pigs per litter between December and February of this year. Producers intend to have 3.07 million sows farrow between March and May of this year and 3.12 million sows farrow between June and August of 2021. Iowa hog producers have the largest inventory among the states at 23.8 million head. Minnesota was second with nine million head, and North Carolina was third at 8.5 million. To get an accurate measurement of the American swine industry, NASS surveyed almost 5,000 operators across the nation during the first half of March. The Quarterly Hogs and Pigs Report is available at www.nass.usda.gov. ********************************************************************************************** Sheep Industry Report Covers the Challenges and Positives in 2020 2020 was a year of ups-and-downs in the United States, and the sheep industry was no exception. COVID-19, major changes in processing, and changes in consumer behavior led to challenges for the U.S. sheep industry. However, there were also positives outlined in the 2020 Sheep Industry Review, a checkoff-funded report commissioned by the American Lamb Board and the American Sheep Industry Association. “COVID-19 made changes to the way U.S. consumers bought and consumed lamb last year,” says ALB Chair Gwen Kitzan. Commercial slaughter was down four percent last year when compared with 2019. Total sheep and lamb inventory decreased one percent to 5.2 million head. Leg, loin, and shoulder sales outpaced ribs. Weekly feeder lamb prices started off the year above 2019 ls but quickly dropped and stayed low through the summer before they rebounded in the fourth quarter of 2020. Looking ahead to the rest of 2021, the report estimates commercial lamb production will increase by three percent, and the year will bring a two percent increase in the commercial slaughter of American lamb. Imports will potentially drop as much as ten percent. Steady production, lower imports, and the lowest available supply since 2017 may set the stage for solid prices in 2021. ********************************************************************************************** U.S. Corn Export Sales Jump Higher Corn sales to overseas buyers jumped higher over the seven days ending on March 18. The USDA says wheat and soybean sales declined during the same period. Corn sales totaled 4.48 million metric tons, up from 395,500 tons during the prior week. China was the big buyer at 3.89 million metric tons. South Korea was next with 353,300 metric tons, followed by Mexico in third place with 196,000 tons. Exports totaled just over two million metric tons, down seven percent week-to-week. Wheat sales dropped 12 percent week-to-week at 343,600 tons. That’s still 24 percent higher than the prior four-week average. Japan was the top wheat buyer at 118,800 metric tons, followed by South Korea’s 116,400 tons. Unnamed countries canceled shipments of just over 215,000 metric tons. Soybean sales were dismal at 101,800 metric tons, a 50 percent drop from the previous week and a 56 percent drop from the four-week average. Egypt was the top buyer with 109,700 metric tons. Unnamed destinations canceled purchases totaling 152,500 metric tons. Exports fell six percent week-to-week at 501,400 metric tons. ************************************************************************************ Report Highlights Need for Increased Ag Research Spending A new report says stagnant public funding for agricultural research is threatening the future vitality of U.S. food systems. That poses risks to farmer productivity and profitability, the steady supply of affordable food, and ultimately, global food security. The report is a joint effort from the Farm Journal Foundation and the American Farm Bureau Federation. The report highlights the vital importance of public funding for agricultural research and development. New innovations are crucial so farmers can increase their productivity and meet the rising global demand for food. The world population is expected to reach 10 billion by 2050, and food production will have to increase by 60-70 percent to meet the rising demand. While private-sector funding for agricultural R and D has been rising, U.S. public spending has been flat for the past ten years. “The U.S. has always been a leader in agricultural innovation, but we’re at risk of losing that advantage by falling behind the rest of the world in research and development,” says AFBF President Zippy Duvall. Tricia Beal, CEO of Farm Journal Foundation, says, “COVID-19 showed we need more research to deal with unexpected shocks and to find solutions that make our entire food system more resilient.” ********************************************************************************************** CCC Won’t Buy and Sell Sugar Under Feedstock Flexibility Program The USDA’s Commodity Credit Corporation won’t be buying and selling sugar under the Feedstock Flexibility Program for the 2020 crop year, which runs through September 30 of this year. The CCC is required by law every quarter to announce its estimates of sugar that the agency will purchase and sell under the Feedstock Flexibility Program based on crop and consumption forecasts. Federal law allows sugar processors to get loans from USDA with maturities of up to nine months when the sugarcane or sugar beet harvest begins. On loan maturity, the sugar processor may repay the loan in full or forfeit the collateral sugar to USDA to satisfy the loan. The FFP got created as an option to avoid forfeitures on sugar loans. If the USDA faces the likelihood of loan forfeitures, it’s required to purchase surplus sugar and sell it to bioenergy producers to reduce the surplus in the food use market and support sugar prices. USDA’s most recent WASDE report shows that the U.S. ending sugar stocks are unlikely to lead to forfeitures, so USDA doesn’t expect to buy and sell sugar under FFP for the crop year 2020.
| Rural Advocate News | Monday March 29, 2021 |
Washington Insider: US Manufacturing Momentum Grows Bloomberg is reporting this week that American manufacturing “continues to pour on the momentum” as the first quarter draws to a close, despite some supply-chain woes and rising materials costs that are inflaming the inflation debate. Freshly released March data show that an increasing number of factory purchasing managers are reporting faster expansion, Bloomberg says. The Federal Reserve Bank of Philadelphia's index of general business activity soared to an almost five-decade high, while the IHS Markit's preliminary gauge of U.S. manufacturing was the second-strongest in data back to 2007. Orders continue to grow as the economy gathers steam, while inventories of finished goods and stockpiles of materials remain lean, a combination that should fuel even quicker production growth in the months ahead, Bloomberg says. Yet, challenges remain. Producers are struggling with some bottlenecks in the form of shipping and port delays as importers battle over a limited number of available containers. Those strains existed even before a ship stuck in the Suez Canal last week raised more questions about the potential for future delays or price increases. What's more, steady demand and shortages of supplies needed to manufacture goods have sparked price pressures for inputs. In February, the share of manufacturers who signaled slower delivery times approached 50%, according to Institute for Supply Management data. Excluding the period that followed the nation's shutdown to control the spread of COVID-19, that's the largest share since oil imports from Iran were disrupted in 1979. Meantime, producers are paying up for everything from copper and aluminum to crude and iron ore. The latest Philadelphia, New York and Richmond Fed surveys highlight growing materials inflation that risks filtering through to higher prices of finished goods for households and businesses. Fed Chair Jerome Powell told lawmakers this week, however, that he views the current supply-chain bottleneck pressures on input prices as temporary. “We have been living in a world of strong disinflationary pressures, around the world really, for a quarter of a century,” Powell told the House Financial Services Committee on Tuesday. “We don't think a one-time surge in spending leading to temporary price increases would disrupt that.” New York Fed President John Williams, in a Wednesday event, noted that “we're still about 9 million jobs lower than we were a year ago in the U.S. economy, so I think that that's going to keep inflation pressures pretty low for some time.” Recent manufacturing figures for March support Powell's forecast. While regional Fed prices received indexes have been increasing, they're not keeping pace with prices paid. The Richmond Fed's latest manufacturing survey showed the region's manufacturers aren't expecting much more room to raise prices on their products. Respondents said they expected prices received to rise an annualized 3.57% six months from now. That compares with the 3.52% increase they're currently receiving, the smallest difference in seven months. A March survey from the Kansas City Fed showed that while nearly half of manufacturing firms were able to pass through a majority of materials price increases, just 8% said they could fully pass them through. In the meantime, the press took a dark view of the impacts of last week's accidental blockage of the Suez Canal. NYT said the event “called into question the global reliance on globalization.” Of course, the ship involved is not just any vessel, it is one of the world's largest container ships, with space for 20,000 metal boxes. And the Suez Canal is not just any waterway. It is a vital channel linking the factories of Asia to the affluent customers of Europe, as well as a major conduit for oil. The fact that one mishap could sow fresh chaos from Los Angeles to Rotterdam to Shanghai underscored the extent to which modern commerce has come to revolve around truly global supply chains—and their fairly recent dependence on “so-called just-in-time manufacturing.” Some experts have warned for years that short-term shareholder interests have eclipsed prudent management in prompting companies to skimp on stockpiling goods. The report cited Ian Goldin, a professor of globalization at Oxford University who said, no one could predict a ship going aground in the middle of the canal, just like no one predicted where the pandemic would come from. Just like we can't predict the next cyberattack, or the next financial crisis, but we know it's going to happen.” The canal's blockage, he says, affects roughly one-tenth of the world's trade—and has intensified the strains on the shipping industry, which has been “overwhelmed by the pandemic and its reordering of world trade.” If the Suez remains clogged for more than a few days, the stakes likely will rise drastically. Ships now stuck in the canal will find it difficult to turn around and pursue other routes given the narrowness of the channel. Those now en route to the Suez may opt to head south and navigate around Africa, adding weeks to their journeys and burning additional fuel — a cost ultimately borne by consumers. And, whenever ships again move through the canal, they are likely to arrive at busy ports all at once, forcing many to wait before they can unload—an additional delay. “This could make a really bad crisis even worse,” said Alan Murphy, the founder of Sea-Intelligence. So, there is a lot of uncertainty regarding the implications of this accident—and what it might mean—and its implications for future US inflation. These are developments producers should watch very closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday March 29, 2021 |
EIA Details New Biofuel Information To Be Released The US Energy Information Administration (EIA) said it will start publishing additional biofuels data in a monthly report to account for the increase in biofuel production. The report to be released March 31 will include expanded information on production capacity for biodiesel, fuel alcohol and renewable fuels along with expanded information on feedstocks used to produce those biofuels. Reuters previously reported the change was coming and could possibly be added to the WASDE report in May, the first 2021/22 forecasts from USDA.
| Rural Advocate News | Monday March 29, 2021 |
Vilsack Discusses China Phase One Progress While China is purchasing large amounts of many US ag commodities, USDA Secretary Tom Vilsack said Friday (March 26) he thinks they could “be doing more” in some areas to meet their commitments under the US-China Phase One agreement. For corn, soybeans and many other commodities, Vilsack said China is “purchasing fairly significant amounts to the point where we're probably back to where we were pre-tariff and pre-pandemic.” However, China could ramp up imports of biofuels, distiller's dried grains with solubles (DDGS) and dairy, Vilsack said during an appearance at the National Press Club. Beyond those products, he said “there's still work to be done on the relationship,” noting overall US ag market share in China “has suffered as a result of the trade and tariff war.” Asked whether there was the need for any additional trade aid for farmers, Vilsack said no, noting high commodity prices and the rapid clip of purchases by China.
| Rural Advocate News | Monday March 29, 2021 |
Monday Watch List Markets There are no official reports on Monday's docket, but some state NASS offices will offer winter wheat crop ratings at 3 p.m. CDT. As usual, traders will check the latest weather forecasts and pause at 8 a.m. CDT to see if USDA has a new export sale announcement. Weather Dry, warm and very windy conditions will cover the Plains and western Midwest Monday. This combination is leading to widespread high wind and extreme wildfire warnings. Precipitation will be confined to snow squalls in the northern Rockies. Outside the wind and fire threat area, conditions will favor field drying and spring fieldwork.
| Rural Advocate News | Friday March 26, 2021 |
Farm Groups Welcome USDA Pandemic Relief Agriculture groups applaud the Department of Agriculture for this week’s announcement of plans to distribute more than $12 billion under the Pandemic Assistance for Producers. The funding includes $6 billion to develop new programs or modify existing proposals using remaining discretionary funding from the Consolidated Appropriations Act. Another $5.6 billion will be directed to formula payments to cattle producers and eligible flat-rate or price trigger crops. American Farm Bureau Federation President Zippy Duvall says, “We appreciate Secretary Vilsack’s action to release funds and expand eligibility for farmers hit.” National Farmers Union President Rob Larew says, “This sensible approach will help reach farmers who have previously been excluded from relief programs and keep them in business.” The aid programs include biofuels, previously excluded from relief packages. Growth Energy CEO Emily Skor says, “Secretary Vilsack’s announcement that aid is on the way is a light at the end of the tunnel.” Sign-ups for the new program begin April 5, 2021. ************************************************************************************ NCBA: Grassley Bill Not Solution Industry Needs Senator Chuck Grassley this week introduced legislation to address transparency in the cattle market. The Iowa Republican, along with a bipartisan group of Senators, says the bill intends to foster efficient markets while increasing competition and transparency among meatpackers who purchase livestock directly from independent producers. This bipartisan bill will require that a minimum of 50 percent of a meat packer's weekly volume of beef slaughter be purchased on the open or spot market. However, the National Cattlemen's Beef Association does not approve of the legislation. NCBA Vice President of Government Affairs Ethan Lane says, “simply put, Senator Grassley’s bill misses the mark.” NCBA says any legislative solution to increased price discovery must account for the unique dynamics within each geographic region. United States Cattlemen's Association President Brooke Miller commended Grassley for introducing the bill. USCA says the '50-14’ or spot market bill, follows legislation already supported by USCA, the Cattle Market Transparency Act of 2021. ************************************************************************************ Business and Ag Groups Urge Rollback of Section 232, 301 Tariffs The National Foreign Trade Council this week re-launched the Tariff Reform Coalition. The coalition is a broad alliance of business and agriculture groups substantially harmed by the import tariffs imposed by the previous Administration. The group urges the rollback of Section 232 and Section 301 tariffs, saying the tariffs "are causing serious damage to those already struggling.” The coalition says the Biden administration needs to reassess the Section 232 and 301 tariffs, and Congress should hold hearings to see if the tariffs are achieving their objectives. The coalition says tariffs on imports of steel and aluminum should be removed, and use of other trade laws more consistent with the WTO should be considered to address the issue of overcapacity. The coalition includes the National Council of Farmer Cooperatives, National Pork Producers Council, Farmers for Free Trade and others in the agriculture sector. The coalition made the requests in an advocacy document directed at the Biden administration and Congress. ************************************************************************************ Farmers for Free Trade Announces New Board Members Farmers for Free Trade Thursday announced five new Board members. Farmers for Free Trade is a coalition supported and comprised of America’s leading ag organizations and businesses. The new board members include Michael Anderson, trade and industry relations Vice President at the Corn Refiners Association, and Iowa corn farmer Bob Hemesath, a National Corn Growers Association member. Additionally, Angela Hofmann, co-founder of Farmers for Free Trade and Lauren Sturgeon, CoBank Government Relations Director, and Maria Zieba, National Pork Producers Council International Affairs Director, joins the board. Sara May, former President of Farmers for Free Trade, has retired from the board. Steve Noah, President of Farmers for Free Trade, says, "We're pleased with the diversity of interests on the Board of Directors." Brian Kuehl, Farmers for Free Trade Executive Director, says the new members have all built careers that reflect the organization's central mission to help deliver economic opportunity for American agriculture. ************************************************************************************ Anhydrous Ammonia Tank Recovered from Missouri River Federal, state, and local response agencies worked together last weekend to recover an anhydrous ammonia tank floating in the Missouri River. Recovered near Jefferson City, Missouri, the 1,500-gallon tank, including its wheeled chassis, was seen floating downstream last Friday. Given the tank contained anhydrous ammonia, the Missouri Department of Natural Resources requested Environmental Protection Agency’s support with recovery and disposal. The river was at flood stage Friday, and the EPA secured and recovered the tank Saturday. The tank was found intact and not leaking. A Missouri DNR representative says, “Without the collaboration from all teams, removing the tank from the Missouri River would not have been as successful.” Missouri Farmers Association, known as MFA, agreed to store the tank at its location in Jefferson City. The Missouri Department of Natural Resources and MFA agreed to work together to find the tank owner. MFA will keep possession of the tank if no owner can be found.
| Rural Advocate News | Friday March 26, 2021 |
Washington Insider: Better Fish Food The New York Times is reporting this week on worries by the “world's foodies” over a potential “environmental mess” have eased some. The concern was that fish farms were gobbling up wild fish stocks, spreading disease and causing marine pollution. This week, some of the same experts who published that report issued a new paper concluding that fish farming, in many parts of the world, at least, “is a whole lot better.” The most significant improvement was that farmed fish were not being fed as much wild fish. In fact, they are eating more plants, such as soy meal. The study was highly sophisticated and synthesized hundreds of research papers over the last 20 years across the global aquaculture industry. The latest edition was published on Wednesday in the journal Nature. The findings are seen to have “real-world implications for nutrition, jobs and biodiversity,” the Times said. Aquaculture is a source of income for millions of small-scale fishers and revenue for fish-exporting countries. It is also vital if the world's 7.75 billion people who depend on fish and shellfish but want to avoid draining the ocean of wild fish stocks and marine biodiversity. This has led to concerns among some environmentalists about aquaculture's effects on natural habitats. The new paper found promising developments, but also lingering problems. And it didn't quite inform the average fish-eater what they should eat more of — or avoid. The report called the aquaculture industry “too diverse for broad generalizations,” according to Rosamond Naylor, a professor of earth systems science at Stanford University and the lead author of both the 2000 cautionary paper and the review published Wednesday. “The aquaculture industry includes over 425 species farmed in all sorts of freshwater, brackish water, and marine systems, so it doesn't make sense to lump them all together into a 'sustainable' or 'non-sustainable' category,” Naylor said. “It has the potential to be sustainable — so how can we ensure it moves in that direction?” Global aquaculture production has more than tripled in the last 20 years, producing 112 million metric tons in 2017, the most recent year for which statistics were are cited. China leads the way, producing more than half of all farmed fish and shellfish worldwide. Outside of China, Norway and Chile are big players, producing mostly farmed Atlantic salmon, while Egypt produces mostly the Nile tilapia. Most fish produced in Asia is consumed in Asia, meaning that it serves as an important source of protein for citizens of those countries. The study also found that the production of farmed seaweed and bivalves, like oysters and clams, had greatly expanded as well. That is perhaps the most encouraging news, because neither seaweed nor bivalves need extra food to reproduce. They filter nutrients from the water and, in turn, produce nutrition for human consumption. The study reported that freshwater aquaculture today accounts for 75% of farmed fish directly consumed by humans. Its most striking finding, though, concerns fish feed, the Times said, especially for carnivorous fish like salmon, which were traditionally fed lots of wild fish, like anchovies. Between 2000 and 2017, the study said the production of farmed fish tripled in volume, even as the catch of wild fish used to make fish feed and fish oil declined. Martin Smith, an environmental economist at Duke University who was not involved in the study, said the changes in aquaculture resulted partly from new regulations in some countries — rules in Norway, for instance, reduced the spread of sea lice in salmon farms — but mostly because the aquaculture industry had no reason to buy expensive wild fish feed once they had access to plant-based alternatives. “It was always in aquaculture's interest to reduce their most expensive ingredient,” said Smith, who teaches a class called “Should I Eat Fish?” “The language around aquaculture has been overly negative and overly pessimistic,” he thinks. “But also, the industry has gotten a lot better.” Still, problems linger, the authors of the latest study point out. Aquaculture needs better oversight to ensure that environmentally sustainable practices are followed and rewarded. Some countries need to better manage the use of antimicrobials in fish ponds to guard against drug resistant microbes. Aquaculture also remains vulnerable to extreme climate events and disruptions in global trade, such as those created by the coronavirus pandemic. And then there's the question of where the soy used for fish farming comes from. Pressure is mounting on the aquaculture industry to ensure that it does not source soy from deforested areas like the Amazon. “As is the case with all food systems, consumers must realize that there is no free lunch, but there are important choices that can be made with sufficient information,” Naylor said. So, we will see. Environmentalists are rarely happy with the way the world is going — and many would prefer totally plant based diets for more people, in spite of the extent that many of these products rely on manufacturing — and in spite of the frequent criticism that often surfaces for farmed fish. As a result, ag producers probably should be happy with the modest, if growing, areas of agreement recently observed and interpret those as possible future growth markets as they do tend to be, Washington Insider believes.
| Rural Advocate News | Friday March 26, 2021 |
Administration, Groups Urge Supreme Court To Uphold Decision On Refinery Exemptions The Department of Justice (DOJ) said the U.S. Supreme Court should uphold the decision by the U.S. Court of Appeals for the Tenth Circuit which said EPA overstepped its authority when it granted small refinery exemptions (SREs) to three refiners for the 2016 compliance year. The court ruled the SREs should have only been made available to those refiners that had continuously received them previously. “By providing an initial, 'temporary' exemption that can be extended only under specified circumstances, Congress struck a sensible balance, giving small refineries time to develop compliance strategies while maintaining the ultimate goal of universal compliance,” the filing from the DOJ and EPA said. Filings by the Renewable Fuels Association (RFA) and others echoed that view, saying the law supports the court decision and that the SREs “siphon a significant portion of renewable fuel blending requirements” called for under the Renewable Fuel Standard (RFS). The Supreme Court will hear arguments in the case April 27.
| Rural Advocate News | Friday March 26, 2021 |
USDA Announces New Payment Effort, Resumes Some CFAP Actions USDA announced a new Pandemic Assistance Program (PAP) and said that it has completed a portion of the review of the Coronavirus Food Assistance Program (CFAP). USDA said the new effort will reach more producers and it will make at least $6 billion available for the new program. Signup for CFAP 2 will be reopened for at least 60 days starting April 5. The new effort will target payments to a host of ag and other sectors, including biofuels. Additional payments under CFAP 1 will be made to cattle producers, with more than $1.1 billion in payments, but additional payments to hog producers and contract growers remain on hold and are “likely to require modification,” USDA said.
| Rural Advocate News | Friday March 26, 2021 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the U.S. Commerce Department releases U.S. personal incomes and consumer spending for February, followed by the University of Michigan's consumer sentiment index at 9 a.m. Traders remain interested in the latest weather forecasts and any news of export sales. Concerns about rising coronavirus infections in Europe were a bearish influence on Thursday's soybean oil price. Weather Friday brings showers to the Great Lakes with an easing of dry conditions. We'll also see light showers in the Southeast after the volatile severe weather events of Thursday. During the weekend, periods of rain will cross the central Plains and the Midwest, with heavier rain in the eastern Midwest and Delta Sunday.
| Rural Advocate News | Thursday March 25, 2021 |
AFBF: Agriculture Must Be Prioritized for COVID-19 Vaccine The American Farm Bureau Federation is urging the Biden administration to prioritize agriculture for the COVID-19 vaccine. In a letter sent to the administration Wednesday, AFBF President Zippy Duvall called for the elimination of barriers to vaccine access for America's farmers and farm workers. Duvall says, "This prioritization would ensure that planting, harvesting, processing, and distribution of human and animal food can continue to ensure our grocery shelves and food pantries remain stocked." The administration recently directed states to prioritize vaccines for teachers. AFBF's request that similar action be taken for agriculture is consistent with the recommendations of several medical and science groups, including the Centers for Disease Control and Prevention. While farmers and farmworkers in some states have been able to access the vaccine, AFBF says other states have not allowed food and agriculture workers priority access. Duvall asks the administration to "take additional action to eliminate any barrier to vaccine access for America's farmers and farm workers." ************************************************************************************ Farm Lending Pullback Continues Agricultural debt at commercial banks eased further at the end of 2020, and loan repayment problems moderated slightly, according to the Kansas City Federal Reserve Bank. Research by the KC Fed released this week shows general improvement in the agricultural economy likely drove the pullback in farm lending activity and strengthened credit conditions. Higher crop prices and an influx of government payments in 2020 also contributed to stronger growth in deposits, which supported a sharp increase in liquidity at agricultural banks. Agricultural loan balances at commercial banks reached a five-year low in the fourth quarter and continued to shift toward farm real estate. Although the accumulation of farm debt remained higher than the average of the past ten years, the total value of farm loan portfolios fell five percent from the previous year. Moving forward, the research says the pace of lending to farmers may remain slower than in previous years, as 2020 government payments and recent strength in crop prices have improved borrower liquidity and farm balance sheets. ************************************************************************************ EPA Extends RFS Compliance Deadline The Environmental Protection Agency this week extended the compliance deadline for refiners to meet their Renewable Volume Obligations. EPA is extending the RFS compliance deadline for the 2019 compliance year and submission of reports for the 2019 compliance year for small refineries. The new deadlines are November 30, 2021, and June 1, 2022. EPA is also extending the RFS compliance deadline for the 2020 and the associated deadline for attest engagement reports. The new deadlines are January 31, 2022, and June 1, 2022. Finally, EPA is extending the attest engagement reports deadline for the 2021 compliance year to September 1, 2022. Following the Announcement, Growth Energy CEO Emily Skor stated her organization is disappointed in the decision to agree to the deadline extension request by refiners. Skor says, “Refiners using COVID-19 as a pretext to attack the Renewable Fuel Standard is wrong, as biofuel producers were among the hardest hit by COVID-19.” ************************************************************************************ Equipment Manufacturers Report Positive Outlook for 2021 Equipment Manufacturers report a positive outlook for 2021, according to a new survey by the Association of Equipment Manufacturers. The survey found 88 percent of manufacturers report a positive outlook for 2021, while more than half expect sales to increase or remain stable despite the ongoing impact of the global pandemic. The online survey was targeted to employees of AEM member companies and includes results from more than 130 respondents, including CEOs, vice presidents, and sales and operations leaders, among others. AEM President Dennis Slater says, “Equipment manufacturers have begun to turn the corner.” Looking at the biggest challenges facing company executives and the equipment manufacturing industry as a whole in 2021, respondents indicated that the lingering COVID-19 pandemic and keeping employees safe and on the job remain the top concerns, followed by finding skilled workers for new jobs being created. One in eight respondents said that COVID-19 will have a lasting impact on how they work. ************************************************************************************ Organic Valley Launches National Clean Energy Fund for Its Farmers Organic Valley is partnering with Clean Energy Credit Union to launch the Powering the Good Loan Fund. The fund seeks to provide the best loan terms for farmers seeking to reduce their reliance on fossil fuels with renewable energy and efficiencies. Organic Valley says the program is the first of its kind for both cooperatives, pioneering a unique clean energy loan fund for over 1,700 farmers across the country. To accelerate energy improvements, Organic Valley and Clean Energy Credit Union will roll out a $1 million fund with plans to expand. As the nation's largest organic, farmer-owned cooperative, Organic Valley pulls carbon out of the air through regenerative practices like rotational grazing, while also working to reduce carbon emitted wherever possible. Bob Kirchoff, Organic Valley CEO, says, “We are providing farmers a means to reduce their energy costs and become more self-sufficient and sustainable.” He says farmers who participate will contribute to a healthy, regenerative future for the next generation. ************************************************************************************ Farm Bureau Chief Economist Join Senate Ag Committee Staff Farm Bureau Chief Economist John Newton is joining the Senate Agriculture Committee staff. Newton will serve as Chief Economist for the Ranking Member John Boozman, an Arkansas Republican. Boozman announced the appointment of 15 staff members this week. The Senator says, “I am excited to move forward with this accomplished team.” AFBF President Zippy Duvall says, “Although I am sorry to see John go, I am also pleased to know he will serve in such an important role.” Before joining AFBF, he served as the chief economist for the National Milk Producers Federation. Newton holds a doctorate in agricultural economics and master’s degrees in macroeconomics and agricultural economics, all obtained at Ohio State University. Boozman also added Pam Miller as a Senior Professional Staff member. Miller previously served as the administrator of USDA’s Food and Nutrition Service. And, Martha Scott Poindexter returns to the Committee as staff director for the Republican side. She had previously led the committee staff from 2005-2010.
| Rural Advocate News | Thursday March 25, 2021 |
Washington Insider: Administration Begins Discussion on Water Infrastructure Bloomberg is reporting this week that the proposed Drinking Water and Wastewater Infrastructure Act of 2021 is beginning to be discussed in both chambers. It says that Senate proposals would invest more than $35 billion in water resource development projects across the country. A major target of the effort is to authorize two critical EPA programs—the Drinking Water State Revolving Fund (DWSRF) and the Clean Water State Revolving Fund (CWSRF) — which provide financial aid to localities' drinking water systems and to state safe water programs, as well as loan financing and assistance for communities for a range of water infrastructure projects. The legislation would reauthorize the DWSRF at $2.4 billion in fiscal 2022, gradually increasing that amount to $3.25 billion in fiscal years 2025 and 2026 for a total of $14.7 billion. It would increase the minimum percentage of those too be aimed for “disadvantaged communities” from 6% to 12%. The CWSRF would be reauthorized at the same funding levels between fiscal years 2022 and 2026 as the DWSRF. The legislation also would re-up the Water Infrastructure Finance and Innovation Act through 2026 at the current funding level of $50 million per year. “Rebuilding our water infrastructure must be at the heart of the ongoing 'Build Back Better' efforts because we will have missed a huge opportunity to improve American lives if we only fix our roads, but fail to repair and upgrade the pipes beneath them,” said lead author of the bill Sen. Tammy Duckworth, D-Ill. The legislation “begins to bridge the growing gap in federal cost-share of water infrastructure,” wrote Adam Krantz, chief executive officer of the National Association of Clean Water Agencies, in a letter to EPW leadership. “Overwhelmingly, the increasing costs of these essential public services are borne by local ratepayers – with no reliable safety net for households when costs are unaffordable.” On the House side, the Energy and Commerce and Transportation and Infrastructure panels both have jurisdiction over water issues. T&I Chairman Peter DeFazio, D-Ore., has unveiled legislation that would authorize $40 billion over the next five years for the Clean Water State Revolving Fund. House Energy and Commerce Committee Democrats have introduced a $300 billion infrastructure package that includes $51.6 billion to protect Americans' drinking water “by extending and increasing funding for the State Revolving Loan Fund and other safe water programs and providing substantial new funding for the replacement of lead service lines that threaten public health,” a committee fact sheet said. Even as Congressional majorities are beginning to discuss new projects, Republicans signaled they “aren't ready to engage in bigger infrastructure discussions.” Democrats say they hope for a bipartisan bill, but advocated for a broad definition of infrastructure that Republicans rejected. House Ways and Means ranking Republican Kevin Brady, Texas, said no Republican members in the committee joined “because Democrats over-politicized the infrastructure process.” Also this week, USDA said the government should be prepared to support prices farmers receive for carbon credits but “avoid setting up a federally run carbon market that would compete with nascent private markets.” Robert Bonnie, the department's main climate adviser, said a key way the agency can work to reduce greenhouse gas emissions would be by making purchases to bolster prices of the credits, which farmers can sell for switching to practices that reduce emissions or sequester carbon. In addition, the Federal Reserve said it is planning to make climate change a major part of its Wall Street oversight by creating a new committee that will identify and respond to dangers from a warming planet to the financial system. The Financial Stability Climate Committee will be “charged with developing and implementing a program to assess and address climate-related risks to financial stability,” Fed Governor Lael Brainard said in a speech yesterday. Also, Idaho Republican Gov. Brad Little told a House Natural Resources subcommittee Tuesday that Democrats' efforts to protect federal land as wilderness and other designations “could prevent states from getting control of climate change-driven wildfires.” Little urged the Biden administration to “scale up” its management to deal with the effects of climate change by allowing workers to log forests to reduce the wildfire threat. Democrats, however, said land use changes from logging and oil and gas development are driving climate change and their impacts need to be considered in federal land decisions, including wildfire mitigation. At the same time, some Democrats are continuing to target fracking. Reps. Yvette Clarke, D-N.Y., Matt Cartwright, D-Pa., Diana DeGette, D-Colo., and Jan Schakowsky, D-Ill., plan to reintroduce a package of five bills to hold big oil and gas companies accountable to national standards for water and air protection. The measures would close the “aggregation exemption” written into the Clean Air Act for oil and gas activities, require increased regulation of waste from production activities, require an Interior study on stormwater runoff, repeal an exemption for hydraulic fracturing in the Safe Drinking Water Act, and require testing of underground sources of drinking water in connection with fracking. So, we will see. Clearly, the Biden administration is taking concerns about climate change seriously, along with more limited threats to the environment. These are policies and proposals that producers should watch closely as the continue to emerge, Washington Insider believes.
| Rural Advocate News | Thursday March 25, 2021 |
USDA To Pursue Rulemaking On RFID Tags USDA announced it will not finalize a plan put forth by the Trump administration to approve Radio Frequency Identification (RFID) tags as the official eartag for interstate movement of cattle, and the Animal and Plant Health Inspection Service (APHIS) will use the rulemaking process for future actions on RFID tags. APHIS said his means that all current approved ID methods can be used until further notice. The agency said they will “continue to encourage the use of RFID tags” while rulemaking is pending as they believe the tags provide the “best protection against the rapid spread of animal diseases.” USDA in July 2020 had issued a notice seeking public comment on making RFID the only ID devices approved for cattle and bison laying out a timeline of no longer allowing the official USDA shield to be used on metal or other tags that did not have RFID components starting January 1, 2022, and would make RFID tags the only official ID tags effective January 1, 2023.
| Rural Advocate News | Thursday March 25, 2021 |
Vilsack Initial Discussion With China Counterpart Yields Little Fresh Information USDA Secretary Tom Vilsack spoke with Chinese Minster for Agriculture and Rural Affairs Tang Renjian, with the two agreeing that it was “important” for the two sides to “work together and address areas of common concern.” A USDA spokesperson said that Vilsack did “raise concerns” about Chinese trade barriers, but provided no information on any specific issues that he raised. The two also discussed the “positive role agriculture can play in addressing climate change.” The two agreed to “discuss these issues further” in the future. As has been the case with initial readouts of discussions between U.S. and foreign officials early in the Biden administration, there are few details being offered about the specific issues raised and thus it is hard to determine what kind of progress, if any, may have been made. But these initial sessions are never expected to be ones where significant breakthroughs take place. If anything, they are more of a “meet-and-greet” effort to hopefully set the stage for detailed discussions or resolutions in the future.
| Rural Advocate News | Thursday March 25, 2021 |
Thursday Watch List Markets Thursday looks busy with USDA's weekly export sales, U.S. jobless claims, report on fourth-quarter U.S. GDP and the U.S. Drought Monitor all out at 7:30 a.m. CDT. At 9:30 a.m., the U.S. Energy Department releases its weekly report of natural gas inventory. USDA follows at 2 p.m. CDT with its quarterly report of hogs and pigs inventory. Weather forecasts and any fresh export sales will also be noticed. Weather Thursday features moderate to locally heavy rain in the Delta and Mid-South, along with periods of snow in the Northwest. Areas with rain will have field work disruptions along with a threat of flooding. Heavy rain potential moves into the eastern Midwest Thursday night. Dry northern areas will again be bypassed by precipitation.
| Rural Advocate News | Wednesday March 24, 2021 |
USFRA Announces Growing Commitment to Future of Agriculture U.S. Farmers and Ranchers in Action celebrated National Ag Day by announcing the growing list of companies, organizations and individuals who have joined the Decade of Ag. The program is the first sector-wide movement to align to a shared vision for the next decade centered around investing in the next generation of agricultural systems, restoring the environment, regenerating natural resources and in doing so, strengthening the social and economic fabric of America. USFRA CEO Erin Fitzgerald says, “These leaders are stepping up in action to collaborate for meaningful impact.” The shared Decade of Ag vision is for a resilient, restorative, economically viable and climate-smart agricultural system. The Decade of Ag vision was a two-year process finalized at USFRA's annual Honor the Harvest Forum in the fall of 2020. USFRA says the case for food and agriculture to become the first U.S. economic sector to become carbon negative is promising, but more collaboration, partnerships and investment are needed to accelerate progress and make a meaningful impact in reducing greenhouse gas emissions. ************************************************************************************ Pro Farmer Survey Predicts Record Corn and Soybean Acres A survey from ProFarmer predicts farmers will plant a record number of corn and soybean acres this year. The Pro Farmer/Doane survey revealed total area planted to crops in the U.S. is expected to rise to 319.4 million acres. That would be up nearly three percent, or 8.9 million acres, from 2020. If the survey findings hold true, it also means U.S. acreage will hit the highest level since 2018. The survey projects total corn and soybean plantings at a record 182.3 million acres, which would be up 8.4 million acres from last year. Total acres planted to corn, soybeans, wheat and cotton, are expected to rise 9.5 million acres from last year. USDA's 2021 Ag Outlook Forum in February provided an initial look at acreage. USDA's new chief economist, Seth Meyer, released projections showing the agency expects farmers to plant 90 million acres of soybeans this year and 92 million acres of corn. Combined, that would be a new record. ************************************************************************************ AFBF: U.S. Must Enforce Trade Agreements with Mexico The American Farm Bureau Federation and 26 other industry groups urge the Biden administration to enforce U.S. trade agreements with Mexico. Farm Bureau President Zippy Duvall states, “recent moves by Mexico to limit American imports and to undercut prices in the U.S. puts America’s farmers and ranchers at a competitive disadvantage.” In a letter, the groups ask Agriculture Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai to tackle various trade issues with Mexico. On December 31, 2020, the Mexican government issued a Presidential Decree stating the intention to phase out the use of glyphosate and use of genetically modified corn for human consumption. The groups say that while the standing of the Decree is unclear and the scope is vague, the Decree creates a significant risk and uncertainty to trade of corn and corn products with Mexico. Other issues include dairy trade, organics, meat industry access and geographical indications and biotechnology approvals, among others. ************************************************************************************ New Report Details Connection Between Conservation Practices and Farm Profitability A new report from the Soil Health Partnership details the financial impact of conservation tillage and cover crop usage among Midwest corn and soybean growers. Titled Conservation’s Impact on the Farm Bottom Line, the project was done in collaboration with the Environmental Defense Fund. Based on an analysis of farm operations, management practices and financial records, the project team identified three key takeaways. The first is conservation tillage reduces operating costs, resulting in higher net returns per acre among study participants. Meanwhile, cover crops can be part of a profitable farming system, especially as experience with the practice grows. Finally, success with conservation practices is optimized when farmers take a targeted, stepwise, tailored approach to implementation. The hope with this project, according to the National Corn Growers Association, is that analyses like this will encourage continued and expanded support for farmers, both technical and financial, as they transition to conservation practices in the future. ************************************************************************************ USDA Awards Over $11.5 Million to Help Small and Mid-Sized Farms The Department of Agriculture Tuesday announced $11.5 million for research to ensure small and medium-sized farms become more profitable. Announced on National Ag Day, Agriculture Secretary Tom Vilsack says the funding "will give these family farms the tools they need to be more sustainable, profitable and productive as they face agricultural and economic challenges. USDA's National Institute of Food and Agriculture awarded 24 grants to 20 universities and organizations through their Agriculture and Food Research Initiative, the nation's leading and largest competitive grants program for agricultural sciences. These research efforts focus on alternative crop enterprises, marketing, and scaling up fruit and vegetable production to overcome marketing constraints. By focusing on these key elements, USDA says small and medium-sized farm operators can increase their competitiveness in local markets and can provide greater access to food for their communities, something USDA says is extremely critical as we build back a stronger, more equitable food and farming system. ************************************************************************************ USDA Invests $266 Million to Improve Rural Communities Facilities The Department of Agriculture is providing more than $200 million for rural community services. USDA undersecretary for rural development, Justin Maxson, announced the funding Tuesday. USDA will invest 266 million to build and improve critical community facilities to benefit nearly three million rural residents in 16 states and Puerto Rico. This funding includes $156 million to support health-care-related improvements and emergency response services that will benefit nearly one million rural residents in nine states and Puerto Rico. Maxson says the funding will “spur community development and build sound infrastructure like hospitals and medical facilities to help rural America build back better and stronger.” Specifically, USDA is investing in 41 projects through the Community Facilities Direct Loan and Grant Program. The assistance will fund a variety of essential community services, including emergency response vehicles and equipment. The investments are going to Alabama, California, Georgia, Iowa, Illinois, Kansas, Michigan, Missouri, New Jersey, North Carolina, New York, Ohio, South Dakota, Virginia, Vermont, Washington and Puerto Rico.
| Rural Advocate News | Wednesday March 24, 2021 |
Washington Insider: Administration's Large-Scale Economic Plan Bloomberg is reporting this week that the White House is preparing to send to the president a large-scale economic plan that's “expected to make infrastructure and climate change its leading priorities.” The proposed programs are expected to include as much as $3 trillion worth of measures to include in the long-term economic investments that will follow the $1.9 trillion coronavirus relief bill signed earlier this month. Infrastructure and climate change have long been described as major priorities in the proposals and new details show the administration is looking at some $400 billion for so-called green spending, according to persons involved in the effort. The plan also addresses investing in human capital, with tuition reductions proposed for minorities along with health care initiatives. Unlike the COVID-19 emergency-spending program, the longer-term proposals will feature a major revenue-raising effort. Bloomberg said increasing corporate taxes and rates for the wealthy are expected to be core components of what's set to amount to the biggest tax increases since the 1990s. The New York Times and Washington Post both reported earlier on White House discussions of the new investment program that Bloomberg says likely will be divided into two main components. The $3 trillion investment figure compares with economists' estimates that ranged of around $2 trillion to $4 trillion. Bloomberg noted that no final spending total has yet been decided on and $3 trillion is what will be presented for consideration at this time. In related news, Bloomberg said that the rich got richer in the U.S. last year, as wealth created by rebounding stock and real-estate markets skewed toward high earners. The richest 1% of households saw their net worth rise by some $4 trillion in 2020, meaning that they captured about 35% of the new wealth generated nationwide, according to the latest quarterly study of household wealth from the Federal Reserve. The poorest half of the population, by contrast, got about 4% of overall gains, Bloomberg said. Widening wealth gaps during the pandemic have become a key driver of Biden administration policy, cited by officials as reasons for the proposed tax increases on high-income groups. In the meantime, the administration is coming under increasing pressure to respond to a growing crisis at the border, with the surge of migrants fleeing Central America showing no signs of abating. In response to the new pressure, the president sent two top White House officials to Mexico and Guatemala this week for talks in his latest attempt to stem the flow of illegal migration. The trip comes as Sen. Kyrsten Sinema, D-Ariz., and John Cornyn, R-Texas, wrote to the White House to urge the president to use his “full authorities” to respond to the “border crisis.” The letter argued that “immediate action” is needed to ensure there's enough space to house migrants and to improve the asylum process. Roberta Jacobson, the coordinator for southwest border affairs, and the National Security Council's Western Hemisphere Director Juan Gonzalez will meet with senior leaders in Mexico and Guatemala to “develop an effective and humane plan of action to manage migration,” NSC spokeswoman Emily Horne told the press. They plan to discuss ways to stop the migrants from traveling north to the U.S. border as well as strategies to address the root causes of the migration, such as corruption, violence and poor economic conditions in Honduras, El Salvador and Guatemala. The surge has been increasingly embarrassing for the administration given its promises to liberal activists for a more humane immigration system. That pledge has come under increasing fire from conservatives – joined by some Democrats from border states – who are pressing the president for a firmer policy to deal with migrants seeking asylum. The influx of border crossings is especially pronounced among unaccompanied children and teenagers, creating a humanitarian predicament and political problems for the White House. President Biden said Monday that he plans to visit the U.S.-Mexico border “at some point” for a first-hand look at conditions. White House Press Secretary Jen Psaki said today said the U.S. has amplified warnings to people in Central America not to come, citing more than 17,000 radio ads aired in the region by the State Department. At the same time, she denied the situation amounts to a crisis. “Children presenting at our border who are fleeing violence, who are fleeing prosecution, who are fleeing terrible situations, is not a crisis,” she said. “We feel that it is our responsibility to humanely approach this circumstance and make sure they are treated and put into conditions that are safe.” Also this week, the recently confirmed U.S. Trade Representative held her first meetings with counterparts from the European Union and the UK, Bloomberg said. Participants are hoping they can resolve the dispute over subsidies to manufacturers Boeing and Airbus. Katherine Tai and European Commission Executive Vice President Valdis Dombrovskis discussed “their strong interest” in resolving the dispute, Tai's office said. In a separate meeting with British Trade Secretary Liz Truss, Tai agreed to partner with the nation toward the same goal. The new administration's trade objectives have been dampened somewhat as a result of the recent fractious sessions with China in Alaska. Follow-up efforts have concentrated on reassuring investors in important sectors of the U.S.-China markets and downplaying potential long-term concerns. At the same time, it is clear that China is a major market for U.S. ag products and producers should watch those trends closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Wednesday March 24, 2021 |
USDA Increases SNAP Benefits With Funding From American Rescue Plan USDA on Monday announced a 15% increase in Supplemental Nutrition Assistance Program (SNAP) benefits through September 2021, providing an estimated $3.5 billion to households experiencing food insecurity during the COVID-19 pandemic. The funding was part of the American Rescue Plan. The 15% increase in SNAP benefits will provide about $28 more per person, per month, or more than $100 more per month for a household of four, in additional SNAP benefits. “We cannot sit by and watch food insecurity grow in the United States,” said USDA Secretary Tom Vilsack. “The American Rescue Plan brings help to those hurting the most due to the pandemic. It increases SNAP benefits so households can afford to put food on the table. It invests in working people and small towns and small businesses to get the economy back on track. And it makes the most meaningful investments in generations to reduce poverty.”
| Rural Advocate News | Wednesday March 24, 2021 |
Ag Groups Press For Action On US-Mexico Issues Under USMCA U.S. ag and commodity organizations continue to press the Biden administration on agricultural trade issues with Mexico, calling for continued action on implementation of the U.S.-Mexico-Canada Agreement (USMCA). The groups highlighted several existing and emerging friction points in U.S.-Mexico ag trade relations, including actions related to biotech crops, organics, market access and enforcement of European Union (EU) geographic indications (GIs). The groups noted that biotech crop issues and Mexico's actions on glyphosate are significant issues and create “a significant risk and uncertainty to cross-border trade of corn and corn products.” The groups also noted that U.S. dairy market access to Canada remains an issue that needs to be addressed. The groups' letter came as newly installed U.S. Trade Representative Katherine Tai held virtual discussions with her Canadian counterpart on USMCA and other issues.
| Rural Advocate News | Wednesday March 24, 2021 |
Wednesday Watch List Markets A report on February U.S. durable goods orders is due out at 7:30 a.m. CDT and don't be surprised if it is less than expected, as many reports for that cold February have been. The U.S. Energy Department releases its weekly inventory report at 9:30 a.m. and traders will check in on last week's ethanol production pace, in addition to the latest weather forecasts and export sales news. Weather Rain showers will cover much of the Great Lakes and portions of the eastern Midwest Wednesday. Snow showers will also occur in the far southwestern Plains along with portions of the Northwest. These occurrences continue the unsettled pattern over the central U.S. which will remain through the end of the week. The pattern turns drier during the six to ten-day period.
| Rural Advocate News | Tuesday March 23, 2021 |
FFA Students Share Ag Story for National Ag Day This week, students from around the country will be busy sharing the importance of agriculture. It’s all in celebration of National Ag Day, which is Tuesday, March 23. The day celebrates agriculture and provides an opportunity for those in the industry to share the importance of agriculture with a broader audience. The future of agriculture is strong, and this is evident in the many student-led agriculture organizations. This week, students from FFA, 4-H, Agriculture Future of America, and Minorities in Agriculture, Natural Resources, and Related Sciences will share information on the critical role agriculture plays in our culture and economy. An FFA news release says, “National Ag Day gives students from agriculture youth organizations the chance to work together and share the importance of agriculture and agricultural education with our national government leaders.” Students will also learn skills this week that they can use as they go forward in their lives and strengthen agriculture along the way. All this week, student leaders will work together virtually to discover how they can continue to be advocates for agriculture while telling the vital story of ag throughout the nation. For more information on those events, go to www.FFA.org. ********************************************************************************************** White House Proclamation on National Ag Day To celebrate National Ag Day on Tuesday, March 23, the White House issued a proclamation regarding the value of agriculture to the country. “We recognize the unique and irreplaceable value that farmers, ranchers, foresters, farmworkers, and other agricultural stewards have contributed to the nation’s past and present,” the White House says. America’s agriculture sector “safeguards our nation’s lands” through sustainable management; ensures the health and safety of animals, plants, and people; provides a safe and abundant food supply and facilitates opportunities for prosperity and economic development in rural America. “Over the last year, workers and other leaders across the ag sector have stepped up to ensure a stable food supply in the face of COVID-19 challenges,” the proclamation adds. “Farmworkers, who have always been vital to our food system, continued to grow, harvest, and package food, often at great personal risk.” The White House also says local farmers helped meet their communities’ needs by selling food directly to consumers. The White House notes, “These collective efforts helped get food to millions of adults and children in America when it needed food the most.” ********************************************************************************************** Rural Mainstreet Index Rockets to New High The Creighton University Rural Mainstreet Index climbed above growth neutral for the fifth time in the past six months. The monthly survey of bank CEOs in a ten-state region dependent on agriculture and energy shows the index increased to its highest level since the survey launched in 2006. The overall index for March hit a record high of 71.9 from a solid February reading of 53.8. The index runs from zero to 100, with 50 representing growth neutral. Almost 70 percent of the bank CEOs said their local economy is expanding, while the rest say they’re in a state of little or no growth. “Sharp gains in grain prices, federal farm support, and the Federal Reserve’s record-low interest rates have underpinned the Rural Mainstreet economy,” says Dr. Ernie Goss of Creighton University. “Only three percent of the bank CEOs indicated worse economic conditions compared to the previous month.” However, Goss also admits that rural economic activity remains below pre-COVID levels. The farmland price index moved above growth neutral for the sixth-straight month. The March reading is 71.9, the highest level since 2012. The March farm equipment-sales index hit 63.5, the highest level since 2013. ********************************************************************************************** Utah Egg Producers to be Cage-Free by 2025 Another state will require egg producers to turn to cage-free production methods by 2025. Utah Governor Spencer Cox signed a bill last week that prohibits producers from confining hens in cages beginning on January 1 of 2025. It also requires farmers to provide amenities that allow egg-laying hens to exhibit their “natural behaviors,” such as hen perches, nest boxes, and scratching areas. Utah joins other states like Michigan, Oregon, Washington, Massachusetts, California, Rhode Island, and Colorado in eliminating cages. Josh Balk of the Humane Society says Utah’s law is part of a rapid industry shift toward cage-free production methods, noting that “nearly 30 percent of the industry is cage-free.” ABC TV in Utah says egg-laying hens can be raised in an indoor environment as long as they have enough room under the United Egg Producers’ Animal Husbandry Guidelines for U.S. Egg-Laying Flocks. Someone found in violation of the new law could face a fine of $100 per every written notice, regardless of the number of violations identified in the notice. The Humane Society also says Utah’s approximately five million hens will be able to “run around and stretch their legs in cage-free barns.” ********************************************************************************************** Railroads Combine to Form First “USMCA Rail Network” Canadian Pacific Railway and Kansas City Southern have come together in a merger agreement worth approximately $29 billion. The transaction has the unanimous support of both boards of directors. Following final approval from the U.S. Surface Transportation Board, the transaction will form two railroads that create the first rail network connecting the U.S., Mexico, and Canada. The two railroad systems come together in Kansas City and will connect customers via single-network transportation offerings between points on CP’s system in Canada, the U.S. Midwest, and the U.S. Northeast, as well as points on the KCS system through Mexico and the Southern U.S. The two companies say their combined network’s new single-line offerings will deliver dramatically wider market reach for customers served by CP and KCS, provide new competitive transportation service options, and support North American economic growth. Additionally, the expected efficiency and service improvements should achieve meaningful environmental benefits. Mike Steenhoek (STEEN-hook), Executive Director of the Soy Transportation Coalition, says it’s normal to have concerns about a merger like this. “It’s healthy to be concerned, given how past mergers and acquisitions resulted in a reduction of rail service access rates or increased rates among agricultural shippers,” he says. “However, there’s also little service overlap between the rail companies, which means this proposed merger may result in increased service options.” *********************************************************************************************** Soils Warming Across the Corn Belt The Corn Belt has seen warmer-than-normal temperatures in most of March. A Successful Farming article says the big questions are will soils be warm enough for on-time planting, and will there be enough soil moisture? Weather Trends 360 says mostly warmer trends through the end of March will likely help soils warm-up well through early spring. However, the occasional cold front shouldn’t be ruled out yet, with the biggest risk of short-term, below-normal temps in the Northern Plains and western Corn Belt. The bigger concern in this area is a shortage of rainfall that might continue. Weather Trends 360 says areas of below-normal rainfall are expected in parts of the Northern Plains and the western Corn Belt. The one good thing about the drier weather is the reduced risk of flooding in most of the Midwest. Recent heavy rains caused some flooding in the lower Missouri and Ohio River Valleys, but the overall threat for widespread flooding is very low.
| Rural Advocate News | Tuesday March 23, 2021 |
Washington Insider: Inflation Debate Intensifies Bloomberg is reporting this week that the idea that it is safe for governments to borrow and spend more money – so long as they can get hold of it cheaply, is attracting new attention. However, the report says that “as a guide to policy, the doctrine has a blind spot.” Because even after arguing the point for a couple of centuries, economists find it hard to pin down what drives long-run interest rates. “The greatest area of uncertainty in any forecast really concerns interest rates,” Laura Tyson, a senior economic adviser to the Clinton and Obama administrations. “The profession has not been great at timing either the direction or the amount.” Those are crucial questions as governments try to figure out how much it's safe to spend on pandemic recovery – and for investors wondering if this year's surge in sovereign-bond yields is a blip or the start of an important new trend. For years, estimates of future borrowing costs have tended to be too high – leading to projections of bigger debts and helping deter public spending. Some worry the opposite could happen now: politicians will grow complacent about low interest rates, borrow and spend too much, then get a nasty surprise when they spike. But there's a growing school of economic thought that says that governments and central banks play a bigger role in shaping interest rates than the mainstream acknowledges. This could mean that countries can turn their own borrowing costs into “policy choices,” instead of a price that gets discovered in the marketplace. It's not a new idea, says Paul McCulley, the former chief economist at Pimco. “The central bank has always had more power over long rates than the consensus thought,” he says. “They just weren't exercising it.” Now, they are – one way or another, Bloomberg says. The Bank of Japan has been explicitly targeting government borrowing costs for years, under a policy known as yield-curve control. Australia followed suit during the pandemic. But central bankers, often the main buyers of sovereign debt nowadays, have other ways to steer the yields without officially making them a policy tool. European Central Bank officials, for example, acknowledge off the record that they manage the cost of borrowing for euro-area governments via bond purchases, Bloomberg says. Sometimes the idea on its own is enough, says McCulley, who now teaches at Georgetown University. Once central banks acknowledge they have that power, “and the market agrees with that, then it becomes a self-fulfilling prophecy.” The concern about such policies has been that politicians will spend their countries into bankruptcy or hyperinflation without some kind of external discipline. Once, financial markets were thought to provide it. More recently the task has been assigned to central banks which were walled off from the rest of government so they can focus on nipping any signs of inflation in the bud. Key parts of that intellectual edifice have crumbled, however. Bigger budget deficits and debts, one of the things that were supposed to push interest rates higher, didn't do so. Politicians pivoted to austerity anyway, without much of a push from the markets--and economies suffered a lackluster recovery as a result. COVID-19 is now being seen as different. Spending by governments has been the key to recovery – and the frameworks for assessing how far they could safely go didn't seem much use. Typically based around budget deficits or national debts as a share of the economy, traditional fiscal guidelines didn't have a role for interest rates – as debt has become cheaper to service even as it grew bigger. Even the Euro area, which enforces a strict version of the old-school rulebook, threw it out in the pandemic. So, economists are now working on new rules, Bloomberg says. In a November paper, Jason Furman and others argued that the interest payments a government has to make every year are a better benchmark than its total debt or annual deficit. The idea carries weight in the Biden administration Bloomberg says and notes that Treasury Secretary Janet Yellen agrees with it. Furman says that the rule of thumb advocated in his paper – keeping real debt-service costs below 2% of GDP – is applicable regardless of who's right in the debate about what drives interest rates. “Can central banks decide one variable? Yes. Can they simultaneously decide three variables? No,” he says. “You can do financial repression for a while,” but that just makes it harder to meet other targets like keeping inflation under control. Modern Monetary Theory (MMT) agrees that inflation is the ultimate yardstick for policy. But it has different ideas about how governments pay for their spending – and what determines long-term interest rates. While some economists favor explanations such as ageing populations, rising inequality and capital-saving technology, the MMTers believe that when central banks persist in keeping short-term borrowing costs low, they shape long rates too. And MMT economists see the debate increasingly shifting in their favor. Countries that borrow in their own currencies can't go broke, they say, and the real risk of overspending is inflation not bankruptcy. Now the MMTers would like the profession to take another step in their direction by acknowledging that governments can manage their own borrowing costs. In the mainstream models, even low interest rates face the danger of spiking that threatening economic plans, says Scott Fullwiler, an MMT economist and professor at the University of Missouri-Kansas City. “They haven't put into this framework that the interest rates are a policy variable.” So, we will see. These ideas continue to be bitterly controversial in some quarters and stakes are high. The debate is far reaching and certainly one producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Tuesday March 23, 2021 |
Local Government Getting Involved in National 4-H Conference Sale Members of the Chevy Chase Town Council in Maryland now plan to put together a task force to ensure they have a say on the future of the National 4-H Conference ahead of a potential sale later this year. Representatives for the National 4-H Council briefed members of the town council during a virtual Zoom session last Wednesday evening after residents weighed in by email and the jurisdiction's Listserv on what public amenities and uses they would like to see integrated into future plans for the 12.28-acre site. The 4-H has retained CBRE to market the property for sale, with a prospective purchaser being selected in the second quarter and a closing before the end of the year. The property is currently assessed at about $19.9 million, according to the Maryland Department of Assessments and Taxation. Commercial uses are not permitted by right on the property, and several of the town's elected officials asked whether a condition could be imposed on the sale requiring future owners to maintain its residential zoning.
| Rural Advocate News | Tuesday March 23, 2021 |
House Sends PAYGO Measure To Senate A bill to avert Medicare, farm program, other mandatory program spending cuts was approved by the House on Friday, passing on a vote of 246-175. The measure waives statutory requirements to offset the $1.86 trillion COVID aid law and extending the suspension of separate Medicare cuts another nine months, as well as any potential cuts to mandatory farm program spending. Ultimately, 29 Republicans voted with all Democrats to pass the bill. The bill also would make several other changes to the aid/stimulus law, including a correction aimed at ensuring that hospitals serving a disproportionate share of uninsured patients are not penalized for receiving additional aid. The bill preserves special rules for disproportionate share hospitals in California, allowing them to claim funding up to 175% of their costs. It is not clear whether the Senate will approve the plan or if the action will be included in another must-pass bill later.
| Rural Advocate News | Tuesday March 23, 2021 |
Tuesday Watch List Markets A report on February new home sales is due out at 9 a.m. CDT Tuesday. Traders will be checking the latest weather forecasts, watching for any export sales news that develops and will keep an eye on soybean oil after its limit-up close on Monday. Weather Rain is in store Tuesday from the central Plains through western, central and southern Midwest and Delta. Continued dryness easing and soil moisture recharge will occur with this rain. Northern Plains areas in drought continue to be bypassed by the precipitation. A system bringing snow to the Intermountain West looks to track southeast toward the southern Rockies later this week.
| Rural Advocate News | Monday March 22, 2021 |
House Passes Ag Workforce Bill The U.S. House of Representatives passed the Farm Workforce Modernization Act last week. The vote was 247-174, with 30 Republicans siding with 217 Democrats voting in favor of the bill. The Hagstrom Report says the act would give farmworkers in the United States without legal documents a way to gain legal status. The House also passed the American Dreamers and Promise Act, which would allow young people who entered the U.S. as children without legal status to stay in the country. “Farmworkers are vital to the wellbeing of our country and our economy,” says President Joe Biden. “For generations, farmworkers across America, many of whom aren’t in the country legally, have worked countless hours to feed our nation and ensure our communities are healthy and strong.” He says that’s even more clear because of COVID-19. Democrat Zoe (ZOH-ee) Lofgren of California is a primary sponsor of the Ag Workforce Bill. She says stabilizing the ag labor supply will protect farmers and our future supply of food. “The act accomplishes this by providing a path to legal status for farmworkers and updating and streamlining the H-2A temporary worker visa program.” She says it also ensures fair wages and working conditions for all workers. ********************************************************************************************** Groups Respond to House Passage of Farm Workforce Act Some of America’s prominent agricultural leaders and organizations responded to the House passage of the Farm Workforce Modernization Act. National Milk Producers Federation CEO Jim Mulhern says, “Nothing gets done if we can’t move forward. The broad industry and bipartisan support for House passage of the act shows that we can achieve consensus.” National Farmers Union President Rob Larew says the legislation will create a more functional and compassionate farm labor system. “It will allow more flexibility for agricultural employers, as well as strengthen protections for agricultural workers and provide them a path to citizenship.” Tom Stenzel, President and CEO of United Fresh, says, “This will stabilize our current workforce and make improvements to ensure that a future workforce can meet the growing needs of our industry.” House Ag Committee Chair David Scott of Georgia says, “A stable supply of labor is essential for our U.S. agriculture industry to help it thrive in the face of the ongoing competition. I will continue to work with stakeholders and our colleagues in the Senate to make improvements to this needed legislation.” ********************************************************************************************** Aircraft Dispute Still Threatens U.S. Wheat Trade with EU U.S. wheat farmers and customers on the other side of the Atlantic Ocean applauded a temporary truce in the tariff war between the U.S. and European Union. The cross-Atlantic dispute is centers around an unrelated case regarding aircraft subsidies. The 25 percent retaliatory tariff on U.S. hard red spring wheat imports into the U.K. and European Union are suspended for four months, temporarily reopening trade. The temporary break in the tariff comes as Katherine Tai got confirmed as the new U.S. Trade Representative. The dispute goes back to 2004 when the U.S. challenged E.U. subsidies for Airbus, and the E.U. followed suit with a challenge against certain states’ support for Boeing. After years of back and forth, the U.S. and E.U. received authorization to apply retaliatory tariffs in 2020. While the reprieve is welcomed by U.S. wheat producers, many are still cautious. Dalton Henry, Vice President of Policy for U.S. Wheat Associates, says both sides are dug in and the four-month window for the tariff suspension may not be long enough to solve the dispute. The U.K.’s recent departure from the E.U. further complicates the dispute’s outcome. The U.K. has made it clear they want the dispute resolved, offering in December to unilaterally drop its retaliatory tariffs on U.S. goods as an act of goodwill. *********************************************************************************************** Soybean Sales Drop While Grain Sales Higher The U.S. Department of Agriculture says export sales of soybeans plunged while grain sales rose higher week-to-week. An agency report says soybean sales in the seven days ending on March 11 totaled 202,400 metric tons, down 42 percent week-to-week and 31 percent from the prior four-week average. China bought the largest number of soybeans, only totaling 71,500 metric tons. Bangladesh was next at 57,100 tons, followed by Japan. Totals would have been higher, but an unknown country canceled cargoes totaling 123,200 metric tons. Exports came in at 534,100 tons, 24 percent lower than the prior week. Corn sales last week came in at 985,900 metric tons, with Mexico the largest buyer at 285,500 tons, followed by Colombia and South Korea. Exports reached a marketing-year high of 2.2 million metric tons. Wheat sales through March 11 reached 390,100 metric tons, 18 percent higher than the previous week and 40 percent from the average for this time of the year. China was the main buyer at 132,300 metric tons. Mexico and Taiwan rounded out the top three wheat buyers. Unknown destinations canceled shipments of 215,800 tons, while exports for the week came in at 662,300 tons. ********************************************************************************************** Weather Challenges for Chinese Crops China is the number one producer of rice, wheat, potatoes, and many other commodities. However, it trails U.S. corn production by 42 percent. Chinese corn production set a record in 2015, but since then, it’s been too wet or too hot in the country’s three major corn-producing regions. 2019 was one of the wettest years in the past two decades across China. It was followed by near-record-hot conditions in 2020. A Successful Farming article says 2021 is looking at a big change in weather conditions with things trending much drier for most of China’s corn-growing season. The weather will be out of sync as the early spring looks cold and wet, likely delaying the start of planting. The core summer months in China will be much drier, trending toward some of the driest weather in over a decade. There might be enough soil moisture to carry some crops through the season, but there will no doubt be a fair amount of risk that will likely have traders searching through weather maps. Chinese farmers are less likely to have the yield-producing hybrids that farmers in America can access. ********************************************************************************************** February Milk Production Drops 1.3 Percent The USDA says milk production in the 24 major milk-producing states totaled 16.8 billion pounds in February. That’s down 1.3 percent from February of 2020. However, production was 2.3 percent above last year after adjusting for the leap year. January revised production was 18.4 billion pounds, up 2.6 percent from January of last year. The January revision represents an increase of 150 million pounds, or .8 percent, from last month’s preliminary production estimate. The number of milk cows on farms across the 24 major dairy states was 8.94 million head, 88,000 more than February 2020, and 2,000 more head than January of this year. Total U.S. milk production hit 17.6 billion pounds, which was 1.5 percent lower than last year at the same time. However, production was up two percent from last year after adjusting for the leap year. Production per cow in the U.S. averaged 1,864 pounds for February, 44 pounds lower than last February. California was the top state in February with more than 3.3 billion pounds of milk produced, followed by Wisconsin’s 2.4 billion pounds of milk.
| Rural Advocate News | Monday March 22, 2021 |
Washington Insider: Climate Change and the Banks Bloomberg reported late last week that the new administration is considering ways to push the global finance industry into consistently accounting for carbon dioxide emissions and green investments. The report said that the Treasury Department and U.S. regulators are in the early stages of working on measures to improve companies' disclosure of their environmental impact. The moves seek to address carbon leakage — situations where producers move to regions with less restrictive pollution rules — and climate-related metrics for Environmental, Social and Governance-based investing, Bloomberg said. Part of the effort would include recommendations being crafted by the SEC for companies to report their environmental impact, the report noted. The intent is to boost demand for assets that tackle climate change, while preventing companies from making claims that could be considered “greenwashing,” or overstating the significance of emissions reductions and sustainability efforts. Bloomberg also noted that there are already several industry-driven initiatives to establish a set of rules for green finance. But experts warn that without strong government oversight the industry could settle on looser standards that allow firms to continue supporting carbon-intensive activities while using cheap offsets to claim they're doing what's needed to slow global warming. Both the Treasury and the Securities and Exchange Commission refused Bloomberg's request for comment on the report. However, the SEC announced last week that it would solicit public comment on potential changes to policies governing climate disclosure, including whether it should set different standards for various industries and whether investors should have a say in what specific corporations have to reveal. Gary Gensler -- the administration's nominee to lead the SEC currently awaiting Senate confirmation -- would be responsible for implementing any changes to companies' disclosure requirements. Wall Street banks such as Citigroup Inc. and Goldman Sachs Group Inc. have pledged to achieve net-zero emissions. That requires a focus on cutting emissions first, before using offsets to neutralize any pollution that still remains. Doing so usually requires costly structural changes, Bloomberg said. President Joe Biden is pushing for the U.S. to take more aggressive climate action. He's expected to announce a 2030 pollution reduction goal next month that will align with efforts to keep average global temperatures from rising more than 1.5 C (2.7 F) from pre-industrial levels, Bloomberg noted. That's the most-ambitious target under the Paris Agreement. The U.S. government is convening a summit with the world's top carbon emitters on April 22, with hopes of driving more ambitious emissions-reductions and climate-finance commitments. Since taking office, Biden has sought to convince other world leaders that the U.S. is firmly back in the global fight against climate change, after it pulled back under President Donald Trump. Hashing out definitions of green financing will be a key part of discussions at international climate talks scheduled for November in Glasgow, Scotland. Bloomberg also noted that the new administration's green finance framework should start to take shape by June when leaders of the Group of Seven countries are due to meet in southwest England. UK Prime Minister Boris Johnson's government also wants carbon leakage to be on the agenda. “Raising ambitions as we go to Glasgow is so critical,” U.S. Special Presidential Envoy for Climate John Kerry said earlier this month. In Glasgow, “we will meet with the nations that met in Paris to hold the earth's temperature hopefully to no larger than a 1.5 degrees Celsius increase,” Kerry said. “Our hope is that by keeping the 1.5 degree target alive in the next 10 years, we lay the groundwork for the exciting venture of transitioning to clean energy.” The U.S. and Europe could have an identical set of rules that determine what counts as green investment, French Finance Minister Bruno Le Maire told Kerry last week in Paris. The EU is due to propose a regulation on the so-called taxonomy next month. U.S. Treasury Secretary Janet Yellen has said she will create a “climate hub” within Treasury to address the administration's “whole-of-government” approach toward climate change. The hub will be overseen by a senior adviser who is expected to report directly to Yellen, one of the people said. A Treasury climate “czar” has not been announced. Sarah Bloom Raskin, a former Federal Reserve official who served in the Treasury Department during the Obama administration, was under consideration for the post, Bloomberg reported last month. So, we will see. The definition of new program efforts for agriculture also are being watched with interest across the industry. However, environmental criteria can become important hurdles for agricultural activities, especially if they are closely linked to capital availability. In general, programs to limit climate change have been well supported across the U.S. — depending on how interventionist they are and their overall impact on ag and industrial operations. Thus, the new climate rules and programs should be watched closely as they emerge and are implemented, Washington Insider believes.
| Rural Advocate News | Monday March 22, 2021 |
Vilsack Again Signals Continuation of Food Box Effort With Changes Food and nutrition programs remain a focal point for USDA Secretary Tom Vilsack, including the Farmers to Families Food Box Program (FFFBP) launched by the Trump administration during the pandemic. The agency will hold listening sessions on the FFFBP to determine what worked and what did not work, he told an Anti-Hunger Policy Conference Wednesday. The aim of the listening session is to develop adjustments to the program to make sure as it is “is refashioned, and redesigned, if you will, [and] it's done in a way that provides the greatest amount of help to the most people.” He also touted increases in benefits under the Supplemental Nutrition Assistance Program (SNAP) and other nutrition-related efforts at USDA. This is more evidence that the FFFBP will continue under the Biden administration which is not surprising given the popularity of the program and creating a closer link between farmers and consumers. As with any new government program, actual implementation often brings changes or tweaks, but the underlying concept is fully expected to continue.
| Rural Advocate News | Monday March 22, 2021 |
House Clears Immigration Measures, But Senate Outlook Uncertain The House approved to bills to address immigration issues, approving one that would provide a path to citizenship for around 2.5 million undocumented immigrants, including those referred to as “Dreamers” (came to U.S. before the age of 19 before January 1, 2021), on a vote of 228 to 197. Nine Republicans voted in favor of the bill. A second measure won passage 247 to 174 and would provide a path to citizenship for farmworkers in the country illegally and their family members, with 30 Republicans voting for the bill. The farm worker measure was approved by the House in 2019 but was not acted on by the Senate. The Farm Workforce Modernization Act provides for some agricultural workers in the country illegally to receive a temporary legal status if they have worked at least 180 days in the last two years. The bill would also modernize the H-2A temporary agricultural worker program, making year-round H-2A visas available for the first time. But the outlook remains uncertain as the measures face steep odds in the evenly divided Senate. But House Speaker Nancy Pelosi, D-Calif., noted that Democrats control the White House and Senate. "With a Democratic majority in the Senate and President Biden in the White House, when we pass it again it is with better assurance that it will become law,” Pelosi said. But Republicans are becoming increasingly opposed to any new immigration measure, a situation accented by the worsening situation at the U.S. southern border. The U.S. is on pace to see the largest number of migrants crossing into the country illegally in two decades, Homeland Security Secretary Alejandro Mayorkas said Tuesday.
| Rural Advocate News | Monday March 22, 2021 |
Monday Watch List Markets Starting a new week fresh, traders will be checking the latest weather forecasts and for any news of export sales. Monday's first report is for February existing U.S. home sales at 9 a.m. CDT, followed by weekly grain export inspections at 10 a.m. USDA's monthly cold storage report follows the livestock close and is set for 2 p.m. CDT. Weather Another dose of rain is in store for the central and southern Plains Monday, with more drought easing and soil moisture benefit for winter wheat. This rain system expands into the Midwest and Delta the next several days with moderate to heavy amounts. We'll also see rain and snow in the Northwest, but only limited coverage in the northern Plains.
| Rural Advocate News | Friday March 19, 2021 |
National Biodiesel Board More Than Halfway to a Big Goal The National Biodiesel Board recently unveiled a big goal for the industry as it celebrated Rudolf Diesel’s birthday on March 18th. Rudolf invented the diesel engine back in the 1890s. In honor of that achievement, the NBB announced a plan to grow the industry to over six billion gallons by the year 2030, and, with the right advancements in feedstocks, 15 billion gallons by 2050. Right now, the operating capacity for the industry stands at more than three billion gallons, meeting half the NBB’s vision ahead of schedule. Already announced expansions and new projects could add over three billion gallons of capacity as early as 2023. “To see a concept like Rudolf Diesel’s get us to a three-billion-gallon industry is remarkable,” says National Biodiesel Board CEO Donnell Rehagen. “Our industry has seen its challenges, but for nearly 30 years into commercial biodiesel production, our association never took no for an answer.” He says the biodiesel industry is “well on its way” to meeting its six-billion-gallon capacity goal. ********************************************************************************************** Legislation Would Expand Access to Affordable Credit for Farmers Wisconsin Democrat Ron Kind and Iowa Republican Randy Feenstra introduced the bipartisan Enhancing Credit Opportunities in Rural America Act. The legislation would remove taxation on income from farm real estate loans made by community banks. The act would benefit farmers, families, and rural communities by allowing more institutions to offer affordable credit to rural and agricultural borrowers. “I’ve heard from many Wisconsin lenders and farmers about a credit crunch for agricultural and rural loans, which has only gotten worse because of COVID,” says Kind. “The act will take steps to address the issue, lowering the cost for farmers and families to acquire credit in our rural communities and providing a pathway to increased income.” Kind also says America needs to ensure its hardworking family farmers get the support they need. “Our hardworking farmers feed and fuel the world, and I will support any effort that provides the resources they need to succeed in today’s economy,” says Feenstra. Early estimates show the act could reduce the average interest rate on a farm real estate loan by 1.5 to two percent. ********************************************************************************************** Japan Setting Temporary Higher Tariff on U.S. Beef Japan is imposing an emergency tariff hike on U.S. beef imports late this week. The volume of imports for the fiscal year 2020 is believed to have exceeded 242,000 metric tons, beyond which the duty hike gets automatically implemented. If the tariff goes into effect, it jumps from 25.8 percent to 38.5 percent for a month under a bilateral trade agreement that went into effect in January. Japan’s agricultural minister says the resulting increase in prices for fresh, chilled, and frozen U.S. beef will “not likely have a major impact on consumers.” The margin of increase will only be in place for 30 days. For the fiscal year 2020, which began in April of last year, Japan’s cumulative U.S. beef imports totaled 233,112 tons at the end of this February. Finance Ministry Data in Japan says the volume total may have surpassed the agreed-upon threshold by early this month. Japan’s consumption of American beef rose sharply higher because of a drop in beef imports from drought-hit Australia. The Japan Times says when the threshold is reached, the two countries have to start consultations within 10 days to adjust the applicable safeguard trigger, according to their agreement. ********************************************************************************************** The U.S. and Canada Prepare for African Swine Fever The USDA’s Animal and Plant Health Inspection Service and the Canadian Food Inspection Agency have developed a protocol regarding African Swine Fever and bilateral trade. The Hagstrom Report says the protocol will ensure bilateral trade will keep going if African Swine Fever shows up in feral swine in either country while staying out of the domestic swine herds. If ASF is detected in feral swine, all trade between the two nations would immediately halt. Then, the protocol says trading would resume in three stages with increasingly reduced restrictions on live swine, swine germplasm, and untreated swine commodities. “Continuing trade with Canada in the event of a feral African Swine Fever detection is important to our stakeholders, and this protocol provides the necessary guidance to minimize the impact to the swine industry,” says USDA Chief Veterinarian Burke Healy. How quickly the U.S. and Canada establish initial control areas, initiate surveillance/case findings, remove feral swine, and start surveillance of captive swine, will then determine when it’s time to go to phase two of the protocol. Trade restrictions then reduce to the boundaries of the established control areas during the third phase. ********************************************************************************************** NCBA Endorses the Bipartisan HAULS Act The National Cattlemen’s Beef Association is endorsing the Haulers of Agriculture and Livestock Safety (HAULS) Act of 2021. Introduced by four senators, the bipartisan bill would deliver much-needed flexibility for livestock haulers. “One year after COVID-19 began to disrupt daily life, U.S. cattle producers continue to prove each day that they are committed to keeping grocery stores stocked with beef,” says NCBA President Jerry Bohn. “Livestock haulers are a critical component of the beef supply chain, and flexibility in livestock hauling regulations remains vital.” Current hours-of-service rules allow for 11 hours of drive time, 14 hours on-duty time, and then require ten consecutive hours of rest. NCBA says when transporting livestock, there’s a serious need for further flexibility beyond the current hours of service. Unlike drivers moving consumer goods, livestock haulers cannot simply idle or unload their trucks when drive time hours run out without jeopardizing animal health and welfare. Bohn adds, “The HAULS Act represents the best long-term solution, which is a permanent change to existing hours-of-service regulations that preserve animal welfare as well as safety on our roads.” It also makes sure that truckers can keep stores stocked with beef. ************************************************************************************ Farm Bureau Gives Back Through “Harvest for All” The farm and ranch families that make up the American Farm Bureau donated 53 million pounds of food and raised almost $1.5 million to assist hungry Americans in 2020. It’s all a part of the organization’s “Harvest for All” program. Combined, the monetary and food donations totaled the equivalent of 53 million meals. The Young Farmers and Ranchers donation programs complemented the Farm Bureau’s donations to support COVID-19 relief of $5.4 million and 1.4 million pounds of food, announced in January. In addition to raising food and funds for the initiative, farmers and ranched tallied almost 23,000 volunteer hours assisting local hunger groups in 2020. “Hunger remains a concern for people from all walks of life, including many rural Americans and residents of farming communities,” says Jon Iverson of Oregon, Chair of the AFBF’s Young Farmers and Ranchers Committee. “Farm Bureau’s longstanding commitment to helping put food on the tables of those in need through the Harvest for All outreach is more important than ever as the effects of COVID-19 continue.” Florida’s Farm Bureau took the top honors for donating the most food and raising the most money in 2020 by donating 43 million pounds of food and $413,000.
| Rural Advocate News | Friday March 19, 2021 |
Washington Insider: Holding Fast to Strong Growth Fed Policy The New York Times is reporting this week that one of Federal Reserve Chairman Jerome Powell's big tasks in the coming months will be to convince the financial world he means what he says about allowing more than usual inflation. He was asked at a news conference Wednesday whether — in light of forecast that the economy would recover quickly — was it time to “start talking about talking about” slowing the central bank's purchases of $80 billion in bonds each month. He responded with a “half-laugh,” the Times said, before answering, “Not yet.” His dismissiveness of the idea that the Fed would even consider slowing its efforts to strengthen the economy was one of many chances he took in last week's session to convey one simple message: The central bank will not waver in its aggressive efforts to encourage growth until the economy is truly and unquestionably back to health. It almost surely won't be the last time he faces questions that second-guess that resolve, the Times thinks. If the economy evolves as Powell and most private forecasters expect, a veritable boom will be underway later this year. As a result, he and his colleagues at the Fed will face a continuing test of their willingness to follow through on the approach they unanimously agreed to last summer. That new policy framework ended an era in which the Fed pre-emptively raised interest rates because falling unemployment risked future inflation. Powell's job on Wednesday was to persuade financial markets and everyone who makes economic decisions that the Fed was serious about this plan and that it won't be swayed by all the things that, based on its history, might cause an increase in interest rates and choke off the expansion prematurely. If prices for certain goods and services were to surge as the economy comes back, it would, in this view, be a one-time bulge rather than a continuing rise in inflation to which the Fed might need to respond. The central bank's officials now project 2.4% inflation this year, overshooting their 2% target, with a projected return to the target in 2022. The job now is to persuade the world that it really will allow modest inflation and that any coming economic party “will be worth attending.” They insist that any “slow down” policies will be based on actual problems rather than “forecasts of potential future stresses.” Powell's dismissive chuckle was just one piece of the messaging, and he returned to the prevailing idea in several ways. For example, he pledged that “we will continue to provide the economy the support that it needs for as long as it takes.” Also, “we're not going to act pre-emptively based on forecasts for the most part, and we're going to wait to see actual data. And I think it will take people time to adjust to that, and the only way we can really build the credibility of that is by doing it.” “People start businesses, they reopen restaurants, the airlines will be flying again — all of those things will happen and they will turn out to cause one-time bulges in prices, but they likely won't change inflation going forward.” He also played down the release of the Fed's “dot-plot” of when to expect it to be time to raise rates. Four of 18 Fed officials thought that rate increases would be warranted by the end of 2022, and seven by the end of 2023. Powell emphasized that a comfortable majority envisioned no rate increases in the next three years. The questions he faced from the press Wednesday were just the beginning of what figures to be a perennial topic whenever he or other leaders of the central bank face lawmakers, business leaders or the news media. The tone and details may vary, but will all mean: “Are you sure you're not going to start tightening the money supply?” The questions might tie into inflationary pressures. For example, many conservatives have already started to complain about rising gasoline prices. Based on the experience of past Fed leaders, Powell can expect plenty of questions about that in his next visit to Capitol Hill. Or the questions could focus more on booming financial markets and whether the Fed needs to raise rates to rein in speculation. In many ways, it is the inverse of the situation that Paul Volcker faced as Fed leader in the early 1980s, as he engineered aggressive rate increases to curtail the high inflation of that era. He had to resist pressure from fellow Fed appointees who had not fully bought into the overall strategy, even threatening to resign rather than lose a close vote. The situation is certainly not that dramatic — yet — in 2021, given the unanimous vote on the new policy framework and the apparent strong majority on the committee who believe rates need to stay low. But if history is a guide, and inflation trends and financial markets are as unpredictable in the months ahead as they have been in the recent past, it may take more than a laugh for Powell to dismiss questions from the tight-money crowd. So, we will see. Certainly, everyone will be watching price trends as the economy recovers — and there is deep concern in many quarters that the policy makers will allow “too much” inflation,” what ever that is. The Powell approach almost likely will be highly controversial and should be watched closely as it emerges, Washington Insider believes.
| Rural Advocate News | Friday March 19, 2021 |
House Republicans Vote By Secret Ballot To Support Earmarks House Republicans passed a resolution during their conference meeting on Wednesday in support of restoring earmarks, which allows members to secure federal funding for specific projects. The caucus voted 102-84 as Democrats gear up to revive the practice, which allows members to secure federal funding for specific projects. Opponents of the GOP move say the vote tally would have been far different had it not been by secret ballot. Both parties banned earmarks in 2011 after years of them being associated with wasteful projects and corruption. Advocates say new transparency rules will help address those issues and encourage the kind of deal-making essential to bipartisan agreements. Earmarks are being seen by some Democrats as a way to potentially bring Republican support for a major infrastructure effort.
| Rural Advocate News | Friday March 19, 2021 |
Vilsack Signals USDA Farm Program Design May Be Creating Inequities The design of U.S. farm programs to link benefits for the safety net programs to production could be creating racial inequities, USDA Secretary Tom Vilsack said at a nutrition forum Wednesday. Programs based on the level of production could leave out smaller or socially disadvantaged farmers, Vilsack said. “The problem is when you basically compensate on production, the person who's producing more, benefits more,” Vilsack remarked. “So what does that mean? It means the gap widens.” He said an equality commission established at USDA will take a look at all programs and how they are designed and enacted. He labeled it “perfectly understandable” that farm programs focus on production “because that's the way it's always been.” But in a climate of heightened sensitivity on discrimination and equity, Vilsack said it makes sense to focus on broader equity impacts, not just “specific acts of discrimination.” It is not clear what areas of U.S. farm programs that the USDA review will focus on, but no doubt lawmakers who have formulated U.S. farm policy will be tracking the USDA effort closely, likely paying close attention to making sure the USDA attention is on how the programs are enacted as opposed to the underlying legislation that creates the programs.
| Rural Advocate News | Friday March 19, 2021 |
Friday Watch List Markets The only official report on Friday's docket is USDA's monthly cattle on-feed report for March 1, due out at 2 p.m. CDT. Keep in mind February placements will have been affected by the interruption of bitter cold temperatures throughout the central U.S. Otherwise, traders will keep an eye on noncommercial activity after Thursday's sell-off in grains, tension in the crude oil market and the latest weather forecasts. Weather Dry conditions and mild temperatures will cover almost all primary crop areas Friday. This combination favors field drying, snow melt and the easing of river flooding after heavy precipitation during the past week. The only precipitation will be in the Northwest, where rain and snow are in store. There is no easing of drought conditions indicated in the northern Plains and Canadian Prairies indicated through the weekend.
| Rural Advocate News | Thursday March 18, 2021 |
China Buys Another Large Shipment of U.S. Corn China bought a large shipment of U.S. corn on Tuesday. Private exporters reported the sale of 1.15 million tons of corn for delivery by the end of August. The corn is equivalent to more than 45 million bushels and was worth 251 million dollars based on Chicago futures prices. It was the largest sale of U.S. corn to China since the Asian nation bought 2.1 million tons on January 29. Successful Farming says the USDA expects China to buy a record $31.5 billion worth of U.S. farm products in the fiscal year that ends on September 30, thanks in part to its large corn purchases last fall. Sales in the fiscal year 2020 totaled $17 billion when the trade war was in full swing. If those purchases happen, China would be back on top as the number one customer for U.S. farm goods. Last year, China was third in line behind Canada and Mexico. Despite a large number of recent purchases, China didn’t meet the target in its Phase One trade agreement with the U.S. when it pledged to buy $36.6 billion worth of U.S. food, agricultural commodities, and seafood products in 2020. This year, the target is even higher at $43.5 billion. ********************************************************************************************** Oil Industry Asking for Help with Rising Costs The price of renewable fuel credits in the U.S. hit new multi-year highs this week. That has an oil refining trade group asking the White House for help in stabilizing the industry. Prices for the Renewable Identification Numbers have climbed all year as the costs of feedstocks like soybean oil continue to climb higher. Reuters says the American Fuel and Petrochemical Manufacturers group sent a letter on Monday to the Environmental Protection Agency saying that uncertainty about blending obligations for 2021-2022, which have been delayed since missing a November 30 deadline, is contributing to the rising cost of RINs. The group says the high RIN prices threaten the viability of refiners already hard-hit by COVID-19s effect on fuel demand. Renewable fuel credits for 2021 were trading at $1.43 each earlier this week, the highest price since 2013. Also, in the letter to the EPA, the group is asking the agency to finalize proposed extended compliance deadlines for the RFS and urging the EPA to consider the demand destruction brought on by COVID-19 as it decides on the blending requirements for 2021. ********************************************************************************************** Tai Confirmed as U.S. Trade Representative Katherine Tai is the new U.S. Trade Representative. CNBC Dot Com says Tai, a critic of Chinese trade practices, was confirmed by a Senate vote of 98-0. She’s the first Asian American woman and the first woman of color to fill the USTR spot since the position was created 60 years ago. Her confirmation comes as the Biden Administration attempts to move away from the previous administration’s more belligerent tone in dealing with China while also taking a tough U.S. stance against the rival economic power. Several times between 2007 and 2014, Tai successfully argued the U.S. case against China’s trade practices before the World Trade Organization. “There’s also a lot of gray areas where the rules aren’t as clear, or where we don’t have rules yet,” she said last month. Tai also wants the U.S. to work together with other countries to confront China on its trade policies. When testifying before the Senate Finance Committee in February, Tai said she wanted to hold China to its Phase One commitments in the agreement negotiated by the Trump administration. While her predecessor, Robert Lighthizer, used tariffs against China, Tai didn’t say she’d add any additional duties on Chinese goods but did say there are “legitimate tools in the trade toolbox.” ********************************************************************************************** Senate Approves Haaland as New Secretary of the Interior The Senate confirmed New Mexico Democratic Representative Deb Haaland (Holland) as the new Secretary of the Interior. The Hagstrom Report says Haaland is the first American Indian to hold the post. Native American groups applauded her confirmation, but there is controversy over her views on oil and gas leases on federal land and fracking. The vote was 51-40, with four Republicans joining with Democrats in favor of her confirmation. She earned bipartisan support to take over the department that employs a staff of 70,000 people and oversees the country’s natural resources. The agency manages a total of 50 million acres of land, which is one-fifth of the surface area of the U.S. During the hearing, Haaland emphasized her ability to work across the aisle. During her first year in the House, Haaland introduced more bills with a co-sponsor from another party than any other House freshman. Those stats come from the website Gov Track Dot Com, which also rates her as the tenth most politically left member of Congress. ********************************************************************************************** EU Crops off to “Fair Start” After Rapid Temperature Change The European Union’s MARS weather forecasting agency says it’s been a fair start to the spring for winter crops in Europe. Cold spells in February were followed by warm weather that kick-started plant growth. A MARS monthly report says cold weather in southern Russia has likely caused some damage to winter crops. Temps in parts of western and northern Europe swung a long way, going from five degrees above zero to 59 degrees during February. The agency says, “The warm weather contributed to rapid snowmelt and the restart of growth and development after winter dormancy.” Based on trend models, MARS now says it expects 2021 yields to be higher than the disappointing yields of recent years. EU wheat sales will likely rise 3.1 percent year-over-year and 3.5 percent over the prior five-year average. Soil moisture levels shouldn’t be problematic for EU farmers, as even the eastern EU countries all have moisture levels above critical thresholds. ************************************************************************************ Syngenta Selects Site for North American Crop Protection Headquarters Syngenta has selected its current campus location on Swing Road in Greensboro, North Carolina, as the place to redevelop its North American Crop Protection headquarters. The announcement follows a comprehensive assessment of the company’s future needs and multiple site options in North Carolina and several other states. The company intends to build a more than 100,000 square-foot office building to connect with its existing laboratory facility on the north side of the 70-acre campus. Plans also include a complete renovation of the lab facilities. The new workspace will support approximately 650 employees and 100 contract workers. “The Syngenta family in Greensboro has been part of the fabric of this community for many decades,” says Vern Hawkins, president of Syngenta Crop Protection. “It’s our goal to remain in Greensboro for many years to come.” Construction will begin on the new building later this year. The entire project will take about three years to complete. The redeveloped headquarters will include contemporary work and conference spaces, health, wellness, and fitness centers, a cafeteria, auditorium, coffee areas, and many other amenities.
| Rural Advocate News | Thursday March 18, 2021 |
Washington Insider: Big Fight Over Filibuster There is a lot of talk this week about really big policy ideas—and many of these concern direct supports and specific taxes. Budget and spending battles are interesting, but perhaps the most intense conflict appears to be brewing over the filibuster. Senate Minority Leader Mitch McConnell, R-Ky., warned that removing the need for 60 votes to advance most legislation would lead to dire consequences. The Hill quoted McConnell as saying, “let me say this very clearly for all 99 of my colleagues: Nobody serving in this chamber can even begin, can even begin, to imagine what a completely scorched-earth Senate would look like,” McConnell said from the Senate floor. Still, The Hill reported that Democrats “largely shrugged off the GOP leader's predictions, arguing he's already gummed up the Senate.” “For Sen. McConnell and other Republicans to plead for hanging onto this tradition is actually threatening that the Senate will continue to do less and less each year. There are those of us now in control of the majority side ... who really believe there is much more to be done in the Senate, said Sen. Dick Durbin, D-Ill.” The President “appears to agree,” The Hill said. "It almost is getting to the point where democracy's having a hard time functioning." Biden then announced that he supports changing the rules to bring back the so-called “talking filibuster," when senators needed to be on the floor if they are attempting to block bills. At the same time, Senate Republicans are accusing their Democratic colleagues of hypocrisy for talking about reforming or getting rid of the filibuster after using the same procedural tool to block several GOP bills during the previous Congress. The Hill thinks this “back-and-forth” is intensifying amid growing support within the Senate Democratic Conference for reforming the rules over concerns that Republicans will use the filibuster to obstruct proposals that have the support of a majority of Americans. Durbin, who has been participating in behind-the-scenes talks on rules reforms, offered his strongest rebuke of the filibuster to date earlier this week, comparing it to a “weapon of mass destruction” that is holding the Senate “hostage.” The filibuster undercuts American democracy as it is misused by senators to block legislation urgently needed and supported by a strong majority of the American people,” Durbin said during a floor speech Monday. Supporters of reforms argue that without changes, many of the administration's key campaign promises are effectively dead on arrival. Though Democrats control the majority, they still need the support of at least 10 Republican senators to pass most bills. Democrats were able to use reconciliation — a budget process that allows the majority to avoid a filibuster — to pass the recent $1.9 trillion coronavirus bill. Democrats are also likely to use reconciliation to pass a sweeping infrastructure and jobs package amid deep divisions with Republicans on the scope of the legislation and how to pay for it. But without filibuster reform, Democrats will need GOP support to pass any of their other big priorities: immigration reform, voting rights, anti-discrimination measures and background checks, just to name a few. Ideas being discussed by the caucus include everything from smaller changes that would leave the filibuster intact to reinstating the talking filibuster now backed by Biden, or gutting it altogether by use of a simple majority. “I support discussing any proposal that ends the misuse of the filibuster as a weapon of mass obstruction. If the Senate retains the filibuster, we must change the rules so that a senator who wants to bring our government to a standstill endures — at least — some discomfort in the process. We need new rules that actually promote debate,” Durbin said. It's hardly the first filibuster fight that has buffeted an increasingly partisan Senate in recent years. In 2011, McConnell and then-Senate Majority Leader Harry Reid, D-Nev., reached agreement where Republicans would limit their filibusters if Reid agreed to open up the floor to more amendment votes. In 2013, Democrats used the “nuclear option” to end filibusters on lower courts and most executive nominations. Four years later, Republicans in the GOP-controlled Senate ended the use of the 60-vote filibuster on Supreme Court nominations, a move that helped former President Trump add three justices to the court. This time around, part of the problem for reform advocates is the razor-thin margin in the Senate. To go nuclear, Schumer would need the support of every lawmaker in his 50-member caucus. But several are viewed as wary, and Sens. Joe Manchin, D-W.Va., and Kyrsten Sinema, D-Ariz., are both on the record as recently in opposition to such a move. Manchin indicated on Tuesday that he wasn't getting pressure from the caucus saying they “know who I am” and that his position hasn't changed. “Everybody's talking, there's so many different ideas out there. And that's healthy when you want to talk about everything.” Asked what his bottom line is, Manchin added: “You cannot get rid of the filibuster unless your intention is to destroy the Senate.” So, we will see. It is clear that opposition to the current filibuster process is growing—but it is far from clear just what could productively replace it in the current political environment. The expectation is for more and more controversial fights on this issue alone, among a number of others that should be watched closely as the season progresses.
| Rural Advocate News | Thursday March 18, 2021 |
Japan To Temporarily Raise Tariffs On Imports Of US Beef Japanese trade data have confirmed that the country will impose a higher tariff on imports of U.S. beef for 30 days. Japan's Ministry of Finance said the tariff will be raised to 38.5% from a current 25.8% for 30 days starting March 18; for scraps, the tariff will rise to 38.5% from a current 34.7%. The U.S. shipped 242,229 metric tons of beef in Japan's fiscal 2020, exceeding the 242,000-metric ton quota agreed to in the U.S.-Japan trade deal. The two governments will now hold talks on the situation within the next 10 days. The tariff will drop to 25% April 17, the level for Japan's fiscal 2021. Beef importers could delay their customs processes until then to avoid paying the higher tariffs, according to an official with the Japanese ministry.
| Rural Advocate News | Thursday March 18, 2021 |
Experts Signal Carbon Bank, Carbon Efforts Will Take Time Experts at a Farm Foundation session on climate and carbon markets laid out the possibilities for farmers with the efforts to capture carbon and to provide financial incentive/support for farmers on that front, but also indicated that developing the processes, procedures and tools needed for the important factors of measuring carbon and verifying activities will take time to develop. The experts also stressed a need for farmers to be able to get benefits from deploying carbon capture efforts and that failure to make that happen will limit the effectiveness of any such program. While corporate efforts are being seen, those participating in the forum related a view that government could play a key role in research into technologies and practices. The effort will not be an immediate shift, with some indicating it could take upwards of 20 years for moving to new farming practices that sequester more carbon in the soils. And for farmers that have already deployed those efforts, one of the keys may be having the data to back up what their actions have meant in terms of carbon capture. Carbon measurement and carbon prices remain two major components ahead, especially for those already deploying practices like minimum-tillage or no-till. Developing ways to measure those actions retroactively will be key.
| Rural Advocate News | Thursday March 18, 2021 |
Thursday Watch List Markets USDA's weekly export sales, U.S. jobless claims and the latest U.S. Drought Monitor are due out at 7:30 a.m. CDT Thursday. An index of leading indicators is set for 9 a.m., followed by the Energy Department's weekly report of natural gas inventory at 9:30 a.m. Traders will keep an eye on the latest weather forecasts and watch for any export sales that might develop. Weather Thursday will be wet in the eastern and southern Midwest with rain and some snow. Other crop areas will be dry. The pattern turns mostly dry through the weekend.
| Rural Advocate News | Wednesday March 17, 2021 |
USDA Announces Protocols to Minimize ASF Trade Disruptions if Detected in Feral Swine The U.S. Department of Agriculture and the Canadian Food Inspection Agency announced protocols to help ensure bilateral trade if African swine fever is detected in feral swine in either country. USDA’s Plant Health Inspection Service announced the protocols Tuesday. The protocols would be in force if ASF were still absent from domestic swine. Upon an ASF feral swine detection, all trade between both countries would initially stop. Then, according to the protocol, trade would resume in three progressive phases with increasingly reduced restrictions on live swine, swine germplasm, and untreated swine commodities. How quickly the U.S. and Canada establish initial control areas, initiate surveillance/case findings and removal in feral swine, and start surveillance in captive swine, will determine when they enter phase two of the protocol. During the third and final phase, trade restrictions are reduced to the boundaries of the established control area. APHIS and CFIA are continuing to work with the industry to ensure that both countries have the processes and procedures in place to fully implement the protocol. ************************************************************************************ Report: Markets Shaping Planting Intentions A new planting intentions survey from Allendale shows market prices are influencing planting decisions. The Illinois-based analytical research and brokerage firm released its planting estimates this week following a nationwide survey that spanned 29 states. The survey estimates corn planting intentions of 92.8 million acres, two million more acres than in 2020. This would be the fourth largest of all time and 4.5 million off the 2012 peak of 97.2 million. Allendale’s production estimate would imply an increase of 1.058 billion bushels over 2020, a production record, if achieved. Soybean planting intentions are seen at 90.3 million acres, 7.2 million more than last year. This would be a record acreage, 155,000 over the 2017 peak of 90.16 million. Allendale’s 4.5-billion-bushel production estimate would also be a record and 422 million over last year. Wheat acreage is estimated at 46.4 million acres, 2.1 million more than last year. Assuming normal abandonment and trend yields, Allendale’s production estimate of 1.9 billion is 84 million bushels over last year. ************************************************************************************ ADM Settles Peanut Price-Fixing Lawsuit Archer Daniels Midland has agreed to settle a price-fixing lawsuit regarding U.S. peanut crops. The Wall Street Journal reports ADM will pay $45 million to settle the lawsuit brought against ADM, Birdsong Peanuts and Olam International, by nearly 12,000 peanut farmers. Birdsong and Olam previously settled for a combined $58 million. The three companies buy upwards of 90 percent of U.S.-grown peanuts. All three denied any wrongdoing in the settlement, but chose to settle to avoid further litigation-related expenses. The lawsuit claimed the three companies drove down peanut prices by overstating inventories, creating a false sense of oversupply in the market. Unlike other major commodities, there is no futures market for settling prices. The lawsuit claims prices from the three companies offered little variance, leaving farmers with few choices to sell their crop. In court documents, lawyers for the farmers involved in the lawsuit cited private discussions between the rival processors that the farmers claim showed coordination. ************************************************************************************ USDA Announces Deputy Under Secretary for Food Safety The Department of Agriculture Tuesday named Sandra Eskin as deputy undersecretary for food safety. Eskin comes to USDA from The Pew Charitable Trusts, where she served as the Project Director for Food Safety. Before joining Pew, she was a public policy consultant to consumer and public interest organizations, providing strategic and policy advice on a range of consumer protection issues. USDA also announced other staff appointments. Eyang Garrison was named chief of staff in the Office of the Deputy Secretary. Before joining USDA, Garrison served as the deputy chief of staff and legislative director for Representative Marcia Fudge of Ohio. Jeremy Adamson was named policy advisor for trade and foreign agricultural affairs in the Foreign Agricultural Service. Most recently, Jeremy served as the portfolio manager for Certis USA. And, Edyael (edge-yall) Casaperalta was named senior policy advisor for the Rural Utilities Services agency. Casaperalta is an attorney who has supported indigenous and underrepresented communities in telecommunications matters. ************************************************************************************ USDA Investing $598 Million to Improve and Modernize Rural Electric Infrastructure The Department of Agriculture Tuesday announced investments to modernize and improve rural electric grids through 11 projects under the Electric Loan Program. The funding will benefit 460,000 rural residents and businesses in Arizona, Kentucky, Maine, Minnesota, Missouri, New Mexico, North Dakota, Oklahoma, South Carolina, Utah and Virginia. Several of the loans will help expand smart grid technologies, which can be a catalyst for broadband and other telecommunications services in unserved and underserved rural areas. The funding comes just weeks after grid disruptions during a historic cold snap across the nation. Agriculture Secretary Tom Vilsack says, "These USDA investments will bring affordable electric power to rural residents," adding, "Now is the time for our nation to make significant investments in infrastructure." USDA's Electric Loan Program helps finance wind, solar and natural gas plants, and improvements to produce clean energy from coal-fired plants. Local utilities also use the loans to invest in infrastructure to deliver affordable power to millions of residential, commercial and agricultural consumers. ************************************************************************************ Farmers Union Foundation Donates Meals to Troops in D.C. Farmers Union Enterprises recently donated $50,000 to provide roughly 5,000 meals to National Guard troops on duty in the nation’s capital. The funds went to D.C.-based restaurants Farmers Fishers Bakers and Founding Farmers, both of which are part of Farmers Restaurant Group. FUE is made up of several Farmers Union-owned businesses in the Upper Midwest, the dividends of which help fund Farmers Union organizations in Minnesota, Montana, North Dakota, South Dakota, and Wisconsin, as well as National Farmers Union. National Farmers Union President Rob Larew says, "As farmers, one of the best ways we know how to thank these brave individuals for their sacrifice is with food.” Farmers Restaurant Group co-owner Dan Simons says, “My team and I are honored to be able to provide delicious meals to those who serve and protect each and every day”. The first delivery of lunch and dinner meals was made Tuesday morning to the D.C. Armory. Several more deliveries will be made over the next four weeks.
| Rural Advocate News | Wednesday March 17, 2021 |
Washington Insider: Global Tax Deal Considered Bloomberg is reporting this week that Treasury Secretary Janet Yellen is working with her counterparts around the world to forge an agreement over a global minimum tax on multinational corporations to help pay for its emerging domestic agenda. Bloomberg says the effort involves “a fraught and challenging global negotiation of tax laws,” but if it succeeds, could prove one of Yellen's biggest policy legacies and could also prove central to Biden's presidency. The $1.9 trillion stimulus signed into law last week was financed completely by additional federal borrowing. But the administration seen as searching widely for ways to minimize reliance on taxes for other big-ticket priorities such as the massive infrastructure and jobs package being discussed by White House officials and congressional Democrats. A key source of new revenue being discussed is corporate taxes, which President Trump cut sharply cut in 2017. Although President Joe Biden has not proposed reversing the Trump's cut in the corporate tax rate from 35% to 21%, he has said he will aim to raise potentially hundreds of billions more in revenue from big businesses. At the same time, tax experts, business groups and Republican lawmakers worry that raising the rate could damage U.S. competitiveness. Countries around the globe have both recently and over the past several decades joined the United States in reducing tax rates to attract corporate investment – a trend some economists see as a destructive "race to the bottom." "It's a little like the Paris climate accord, every country thinks it can steal business from others by lowering taxes. The main beneficiary of that race has been the richest multinational corporations," Joseph Stiglitz, a Nobel Prize-winning economist at Columbia University and mentor of Yellen's said. Yellen is now seen as working to curb the trend through an effort at the Organization for Economic Cooperation and Development in which more than 140 countries are participating. The goal is for countries to agree in principle to a minimum corporate tax rate—likely to be nonbinding – that would make it harder for multinational corporations to play countries off each other by threatening to leave. At this time, Yellen's efforts face myriad skeptics who worry the push could encourage further tax shifting to countries outside the OECD agreement, or lead the United States to make concessions that will hurt its competitiveness. This group includes the U.S. Chamber of Commerce. "It's just a money grab from the Europeans, and we should not let them do it," said Douglas Holtz-Eakin, president of the center-right American Action Forum and a former director of the Congressional Budget Office. "My big concern is that—as part of their desire to be on a 'let's be friends' parade – the administration will give away too much.” Over the past four decades, industrialized nations around the globe have dramatically slashed businesses taxes, especially in industrialized countries not considered tax havens. The average corporate tax rate globally in 1980 was approximately 40%, but more recently has fallen to about 23% in 2020. About 40% of profits earned by the world's multinational firms were stashed in tax havens in 2017. Bloomberg calls the worldwide tax declines “startling.” From 2000 to 2018, OECD says 76 countries cut corporate tax rates while 12 countries maintained their corporate tax level and only six increased them. In 2000, more than 55 countries had corporate tax rates above 30%. Now, fewer than 20 do. For example, the effective U.S. federal tax rate had fallen from about 44% to closer to 29% before the 2017 tax law was passed, according to Goldman Sachs. After that cut, the effective rate paid by the largest Fortune 500 companies fell from 21% to about 11.3%, with 91 of the world's biggest corporations paying zero dollars in federal taxes. Biden campaigned by promising to enact new federal programs but critics charge that those plans mean “tax hikes that hurt U.S. competitiveness” and encourage multinationals to relocate abroad. This is leading administration officials to argue that the OECD negotiations are crucial to the administration's broader agenda. One part of the global tax restructuring effort would involve OECD grants of taxing rights over a part of multinational firms' profits where the consumers reside, based on set international formulas that would cover about $100 billion in global tax revenue. To support this approach, there is discussion of an agreement on a floor on international corporate tax rates, based on an OECD global minimum tax rate, probably at around 12% of profits – both highly controversial approaches. "The OECD's blueprints offer little more than a 'tax haven lite' model where tax havens can keep the majority of profit they siphon from around the world so long as they share some of those profit with the richest of countries," Alex Cobham, chief executive at the Tax Justice Network, said in a statement last fall. Any agreement reached by the administration about digital tax rules likely would have to be ratified by Congress in a series of highly difficult negotiations, depending on the details of the deal. Critics say these fights could take years for the OECD member countries to pass laws putting the agreement into effect – if they do so at all. But proponents say the cost of inaction remains too steep, Bloomberg says. It sees the OECD negotiations as a major early test of the global tax ambitions and it cites Yellen's letter to the G-20, highlighting the global impact of the coronavirus, among other crises. "We have come together to face great challenges in the past. We must do so again." So, we will see. It is clear that political pressure against sharply increased borrowing to support new programs is increasing rapidly and that the OECD approach could provide some important opportunities. These proposals are extremely important and should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday March 17, 2021 |
USDA Seeks Input On Climate Change Efforts USDA is requesting public comment on four areas of USDA policy: Climate-Smart Agriculture and Forestry; Biofuels, Wood and Other Bioproducts, and Renewable Energy; Addressing Catastrophic Wildfires; and Environmental Justice and Disadvantaged Communities. The request does not offer any potential actions on the part of USDA in these areas nor does it discuss a carbon bank which has been touted as a potential action or specifically the use of the Commodity Credit Corporation (CCC) authority for any of efforts. USDA has set a 45-day comment period on the request and it is not clear whether they will allow more time for public feedback given the breadth of the information they are seeking. The attention on climate change actions at USDA is clearly rising as the situation is a government-wide focus, and one that USDA Secretary Tom Vilsack has spent a considerable amount of time focusing on in his initial time in office.
| Rural Advocate News | Wednesday March 17, 2021 |
Wednesday Watch List Markets Markets will notice a report on February U.S. housing starts at 7:30 a.m. CDT Wednesday, followed by the U.S. Energy Department's weekly inventory report at 9:30 a.m. Traders will examine the latest weather forecasts and watch for any export sales news. The Federal Reserve concludes its meeting and is expected to announce the federal funds rate target will stay near zero at 1 p.m. CDT. Weather Moderate to heavy rain and snow will cover much of the southern Plains and southern Midwest Wednesday. This stormy pattern includes blizzard warnings in the Texas and Oklahoma Panhandles, tornado threats in the southeastern Plains and flood risk in the southern Midwest. This stormy pattern is stressful for livestock, safety and transportation but provides continued soil moisture benefit.
| Rural Advocate News | Tuesday March 16, 2021 |
USDA Requests Information on USDA’s Climate-Smart Agriculture Strategy The Department of Agriculture is requesting public input on a climate-smart agriculture and forestry strategy. The request follows President Joe Biden’s executive order on Tackling the Climate Crisis at Home and Abroad. The executive order states that America’s farmers, ranchers, and forest landowners have an important role to play in combating the climate crisis, and directs Agriculture Secretary Tom Vilsack to solicit input from stakeholders as USDA develops a climate-smart agriculture and forestry approach. Vilsack states, "We want your ideas on how to position the agriculture and forestry sectors to be leaders on climate-smart practices to mitigate climate change." The request was published in a Federal Register notice, which will be available for public input until April 30, and is available online through the Federal Register. The notice seeks information on four topics: climate-smart agriculture and forestry; biofuels, bioproducts, and renewable energy; catastrophic wildfire; and meeting the needs of disadvantaged communities through USDA’s climate strategy. ************************************************************************************ Democrats Reintroduce Safe Line Speeds During COVID-19 Act Democrats have reintroduced the Safe Line Speeds During COVID-19 Act. The lawmakers say the bill will protect worker, consumer, and animal safety by suspending all current and future USDA waivers and regulations that allow companies to increase production line speeds at meatpacking plants during the COVID-19 pandemic. Senate Democrat Corey Booker, along with Representatives Rosa DeLauro and Bennie Thompson, announced the reintroduction last week. In January, the Department of Agriculture withdrew the Trump administration's proposed rule, which would have allowed poultry processing plants to increase the speed of their production lines by 25 percent. For the duration of the COVID-19 public health emergency declaration, this bill would suspend all active waivers issued by USDA and suspend USDA's authority to issue new waivers in this area. The bill would also suspend implementation of, and conversion to, the New Swine Slaughter Inspection System established under USDA's final rule published in October 2019, titled Modernization of Swine Slaughter Inspection. ************************************************************************************ Kind Introduces Bipartisan Legislative Fix to Protect Rural Access to Care Representative Ron Kind last week introduced the bipartisan Rural and Underserved Small Hospital Protection Act. Known as the RUSH Act, the legislation will update the 2021 Consolidated Appropriations Act to help ensure rural health clinics across have the resources they need to provide care for patients in rural and underserved communities. The Wisconsin Democrat says, “We must continue to support our outstanding rural health care providers and protect access to care for rural communities.” Kind says the RUSH Protection Act provides clarity after changes were made to the Rural Health Clinic reimbursement rules. Rural Health Clinics play a vital role in providing access to care for rural communities and have been on the frontlines of combatting COVID-19 in rural regions. However, due to a drafting error in the 2021 Consolidated Appropriations Act, many are affiliated with critical access hospitals that opened in 2020 and face significant Medicare payment cuts. Kind says the legislation will correct this mistake. ************************************************************************************ CoBank Releases Spring Agronomy Outlook Farm supply cooperatives and distributors are positioned to benefit from an active and profitable spring agronomy season, according to a new report from CoBank. The report says the profitable spring is driven by high commodity prices, strong input demand and an expected increase in planted acres of soybean, corn and wheat. Ag retailers begin the 2021 planting season with favorable industry fundamentals and an opportunity to expand profit margins, according to the report. A CoBank researcher says, "Improving profits for cooperative agronomy departments should help cushion the negative carry caused by an inversion in futures prices." Given the higher acreage forecasts, farmers are expected to purchase more fertilization products during the spring planting season. Rising fertilizer prices are also a positive indicator for new sales and retailer margins. Inventory levels of seed, fertilizer and crop protection products are largely expected to be sufficient for the projected increase in spring-planted acres. However, pandemic logistics challenges may impact deliveries. ************************************************************************************ USDA Invests $28 Million in Wetlands Restoration The Department of Agriculture is investing $28 million in six new Wetland Reserve Enhancement Partnership projects and four ongoing projects. Announced Monday, the investment enables conservation partners and producers to work together to return critical wetland functions to agricultural landscapes. Partners will contribute $2.82 million, bringing the total investments to $30.82 million. Terry Cosby, acting Chief for USDA’s Natural Resources Conservation Service, says, “Wetlands have tremendous benefits ranging from cleaner water to flood prevention, to enhancing wildlife habitat to sequestering carbon.” Since 2014, similar projects across 11 states have resulted in 136 closed wetland easements and wetland easements pending closure, protecting more than 27,400 acres. In total, NRCS has supported landowners in protecting more than 2.85 million acres through wetland easement programs nationwide. The balance of the $28 million initial NRCS investment after the projects are funded is $14.7 million, which provides funding for four projects now in their second year. ************************************************************************************ Farm Bureau Farm Dog of the Year Nominations Now Open Farmers are invited to submit nominations for the 2022 Farm Bureau Farm Dog of the Year contest, supported by Purina. This is the fourth year of the contest, which celebrates farm dogs and the ways they support farmers and ranchers throughout America on the farm. The grand prize winner – Farm Bureau Farm Dog of the Year – will win a year’s worth of Purina dog food and $5,000 in prize money. The winner will be recognized at a Farm Dog of the Year award ceremony at the American Farm Bureau Federation Convention in January 2022. Up to four regional runners-up will each win $1,000 in prize money. Desired attributes for the Farm Dog of the Year include helpfulness to the farmer and his/her family, playfulness and obedience. The 2022 Farm Dog of the Year will also be featured in a professionally-produced video. Eligibility guidelines and submission requirements are available online at www.fb.org.
| Rural Advocate News | Tuesday March 16, 2021 |
Washington Insider: Considering Future Economic Policies Bloomberg is reporting this week that the new administration is considering the first major federal tax hike since 1993 as it works to design its long-term economic program. Unlike the $1.9 trillion COVID-19 stimulus act, the next initiative, which is expected to be even bigger, won't rely just on government debt as a funding source. In fact, it has been increasingly clear for some time that tax hikes will be a component. Treasury Secretary Janet Yellen has said at least part of the next bill will have to be paid for. Key advisers are now making preparations for a package of measures that could include an increase in both the corporate tax rate and the individual rate for high earners. The result is increasing pressure on officials like Federal Reserve Chair Jerome Powell who will be required to “defend his ultra-easy monetary policy outlook amid a quickening economic recovery that's ignited fears of inflation,” Bloomberg says. The Fed is wrapping up a two-day policy meeting this week, almost exactly 12 months after slashing interest rates to nearly zero as COVID-19 spread. It will publish its policy statement and quarterly forecasts at midweek and the chair is expected to hold a press conference the same day. A lot has changed in the three months since the Fed last published economic projections, Bloomberg notes, including passage of the massive fiscal stimulus and accelerating vaccinations. Powell's spent recent weeks trying to dispel premonitions about impending tightening and he'll be asked to reconcile a likely upgrade to the Fed's economic outlook and its projections that are expected to show zero interest rates through 2023. “I think this is the kind of meeting the Fed would rather not have,” said Ethan Harris, Bank of America Corp.'s head of global economic research. “the big problem that they face is that they have to raise their forecasts — the GDP forecast they have right now is so stale it could be carbon-dated.” The Fed last updated its projections in mid-December before broad distribution of vaccines and almost $3 trillion in fiscal aid was signed into law. Economists surveyed by Bloomberg expect Fed officials to upgrade their 2021 economic-growth forecast to a median 5.8% from 4.2%. That's still below some of the most bullish Wall Street estimates, the report said. Goldman Sachs Group Inc. is calling for a 7.7% increase in the same period and 11 other firms tracked by Bloomberg say growth will be at or above 7% at the end of the year. The better outlook has raised market expectations for future inflation and prompted investors to sell bonds, pushing up yields and renewing skepticism that Powell can keep rates low for as long as the Fed has indicated. But the Fed chief is sticking to his guns, arguing that the economy has a long way to go in fully getting back to where it was before the pandemic. He's reiterated that the central bank's new policy strategy means it will focus more intently on returning to maximum employment, and will judge that in a much broader way than before. Although 75% of economists in Bloomberg's recent survey said the Fed will have to raise rates “before long,” they didn't see a change to the Fed's median 2023 projection at this month's meeting. Interest-rate futures, however, are pricing in about three 25 basis point rate increases before the end of that year. Recovery optimism reflects a sense that activity will bounce back quickly in the second half of the year. Hiring has already picked up, with more than half a million jobs created in the first two months of 2021 and some see that improvement accelerating. But as Powell pointed out earlier this month, nearly 10 million Americans remain jobless. The Black unemployment rate rose to a staggering 9.9% last month. Inflation also hasn't reflected much of a recovery yet. Stripping out more-volatile food and energy prices, the consumer price index edged up 1.3% in February, far from the Fed's 2% target. Economists expect bigger gains in the coming months, both due to transitory pandemic-related effects and things like higher gas prices and increased spending on leisure activities following a year of lockdowns. Powell last year unveiled a new policy framework, saying they'll allow inflation to overshoot 2% after periods below it. That'll likely mean the Fed will keep policy accommodative for longer. But if the quick and powerful recovery that bond traders are betting on materializes, it could cause a more disorderly sell off in Treasuries, threatening stable financial conditions, which the Fed wants to avoid. In the meantime, Powell and his colleagues have indicated they're not worried about the recent rise in Treasury yields, saying that as long as such price moves are driven by the right reasons — such as the stronger economic outlook — it's not a concern. So, we will see. Clearly, the new administration has large ambitions for new programs leading many to look for evidence of new inflation — a potential development producers should monitor closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Tuesday March 16, 2021 |
Vote On Tai As USTR Expected This Week The U.S. Senate will finally vote on Katherine Tai to be the U.S. Trade Representative (USTR). Her approval has never been in doubt, but it still took longer than most thought for her confirmation vote which should occur sometime this week as Senate Majority Leader Chuck Schumer, D-N.Y., signaled late last week in filing cloture on the nomination. Some believe this is also why the Biden administration has been less public about their trade policy views.
| Rural Advocate News | Tuesday March 16, 2021 |
Focus On Supreme Court In April Relative To Biofuels Policy The U.S. Supreme Court April 27 will hear refiners' appeal of the Tenth Circuit Court ruling that invalidated three small refinery exemptions (SREs). The decision relates to the refiners' appeal of the ruling that said in order to be granted SREs, the refiners needed to have obtained them continuously from 2010-forward. EPA recently came out in favor of the court ruling and said that it will not act on the pending SREs until after the Supreme Court issues its decision on the matter. EPA data as of late-February showed 20 so-called “gap year” SREs were pending covering 2011-2018 compliance years, with another 30 pending for the 2019 compliance year and 16 for the 2020 compliance year. Expectations are if the Supreme Court sides with the Tenth Circuit ruling, it would dramatically reduce the granting of SREs moving forward.
| Rural Advocate News | Tuesday March 16, 2021 |
Tuesday Watch List Markets The U.S. Commerce Department will report on February retail sales at 7:30 a.m. CDT Tuesday, followed by the Federal Reserve's report on February industrial production at 8:15 a.m. Traders will check the latest weather forecasts and see if any export sales news emerges. Weather Tuesday will feature a swath of rain in the southeastern U.S. along with periods of snow in the central and northern Plains and the Intermountain West. The system producing the western U.S. snow is indicated to be a rain and snow maker in the south-central U.S. Wednesday.
| Rural Advocate News | Monday March 15, 2021 |
Kansas City Goes Year-Round on E15 The Environmental Protection Agency approved removing the low Reid Vapor Pressure (RVP) gasoline requirements in Kansas City. That allows the KC metro area to sell E15 year-round. Both the Kansas Department of Health and Environment and the Missouri Department of Natural Resources worked with the EPA to remove those requirements. “The continuing work by state agencies to reduce ozone and improve the air quality for the Kansas City region is what made this move possible,” says Acting EPA Region Seven Administrator Ed Chu. Growth Energy says the announcement is a big step for Kansas City and a continuation of their hard work to improve their air quality and address environmental issues. “Allowing the year-round sale of E15 will help strengthen these clean energy efforts and give Kansas City area residents more access to cleaner and more affordable fuel options,” says Growth Energy CEO Emily Skor. A recent report says switching from E10 to E 15 across the country would reduce greenhouse gas emissions by almost 20 million tons per year. “Ethanol’s benefits are tangible and will help Kansas City protect human health and help decarbonize the country’s transportation system,” she adds. ********************************************************************************************** ITC Placing Duties on Phosphate Fertilizer Imports The U.S. International Trade Commission says phosphate fertilizer imports from Morocco and Russia have affected the U.S. fertilizer market. The ITC also says it will place a countervailing duty on the imports from those countries. U.S. commodity groups have warned that new duties on imported phosphate fertilizers would raise prices by more than $80 a ton. A DTN report says the ITC voted 4-1 in favor of the countervailing duties. The ruling comes a month after the Department of Commerce recommended the tariffs get placed on phosphorous fertilizer imports. Mosaic filed petitions last year to request the start of a countervailing duty investigation. The company said foreign subsidies on imports are unfair and that these duties would restore competitiveness in the U.S. market. “Today’s decision upholds our belief that fair trade is the bedrock of a healthy U.S. economy and that American farmers will benefit from having a more competitive American fertilizer industry,” says Mosaic in a news release. Moroccan importer OCP says in a news release that it disagreed with the ruling and will cooperate with U.S. authorities. ********************************************************************************************** Ag Organizations Want Continued Market Development Funding The Coalition to Promote U.S. Agricultural Exports says farmers and rural businesses need continued investment in the Market Access Program and the Foreign Market Development Program. Those programs are necessary to make up for the lost export opportunities brought on by COVID-19 and fight foreign competition. The coalition sent a letter on that topic to House and Senate Agricultural Appropriations Subcommittee leaders that was signed by 130 agricultural organizations. “Studies show these public-private programs provide a rate of return that far exceeds their public expense,” says Robbie Minnich, Coalition Chair and Senior Government Relations Representative with the National Cotton Council. “Our organizations are asking leadership to provide $255 million for Agricultural Trade Promotion and Facilitation apportioned under the Farm Bill, and from that amount, MAP should receive at least $200 million to promote agri-food products in China, Japan, South Korea, Canada, and Mexico.” The coalition says fully-funded export programs are critical to helping U.S. farmers, ranchers, and food exporters keep pace with the rest of the world’s exporting countries.” ********************************************************************************************** Ag Market Outlook is More Optimistic The USDA’s Food and Ag Policy Research Institute says the Market Outlook Report is uncertain, but it’s more optimistic than it was a few months ago. The most recent baseline projections for agricultural and biofuel markets were prepared using market information available as of January 2021. The agency says commodity markets will continue to be volatile. Some of the key findings include major crop prices will retreat from recent peaks but remain above the prices from 2015-2019. Projected corn prices in 2021 will average $4.06 a bushel, and soybeans will average $10.61. Increasing Chinese imports are behind the recent strength in grain and oilseed markets. If China’s purchasing pace continues, exports and market prices could be higher than projected. However, if purchases falter, there is a downside risk as well. The report also says higher prices and assumed normal spring planting conditions would allow the 2021 total area planted to major crops to rebound to 2018 levels. The average prices for livestock should increase this year as the sector returns to more normal operating conditions after the plant closures and other disruptions during last year. Lastly, after COVID reduced driving and fuel use in 2020, projected ethanol production and use will increase this year but won’t immediately bounce back to pre-COVID levels. ********************************************************************************************** Soy Checkoff Research Shows Strong Trust in U.S. Farmers The United Soybean Board released the results of a consumer survey that sheds light on the needs and perceptions of people nationwide about their food supply. The dependability of farmers who nourish the world hasn’t gone unnoticed. U.S. farmers rank as the most trusted members of the supply chain when it comes to ensuring its safety, taking the top spot in 78 percent of consumer responses. “We knew it was vital to understand the values of the very people who purchase the products our farmers grow,” says Mace Thornton, USB vice president of communications and marketing strategy. Some of the key findings include 79 percent of consumers having either a very or somewhat positive view of U.S. farmers who grow crops, including soybeans. Consumers are united in their support for domestic agriculture, with 70 percent saying it’s somewhat or very important to buy food made with U.S.-grown crops. Sixty percent of the respondents see soybeans as healthy, while 26 percent are neutral on the idea. Less than half are aware that the soybeans used to make their favorite products are sustainably grown. ************************************************************************************ USDA Offers Renewals for CSP Contracts Set to Close The USDA says it’s accepting Conservation Stewardship Program renewal applications through March 31 for over 11,000 contracts set to end this year. More than nine million acres are currently enrolled in the CSP, USDA’s largest working lands conservation program. “In the fiscal year 2020, NRCS helped enhance 9.3 million acres of land enrolled in CSP,” says Terry Crosby, Acting Chief for USDA’s Natural Resources Conservation Service. “CSP continues to prove its worth by helping farmers and ranchers advance their business operations through conservation enhancements on their land that sustain the natural resources that improve productivity and their bottom lines.” Participants with existing CSP contracts that close on December 31 of this year can benefit from recent program changes by renewing their contracts for an additional five years if they agree to adopt additional conservation practices on their land. Applications to renew expiring contracts are due by March 31.
| Rural Advocate News | Monday March 15, 2021 |
Washington Insider: Administration Economic Activism The Hill is reporting this week that President Biden's $1.9 trillion COVID relief act this week is being heralded as a “bridge for low-to-middle income households to” cope financially until vaccines enable the U.S. economy to function normally. The program is popular because of its benefits: large direct payments and funding for the “rollout” of vaccines and enhancements for school safety — as well as $350 billion of support for state and local assistance. Many of the provisions will lapse after specified periods, but advocates are pushing for permanent increases for child-tax-credits—supports estimated to cost more than $100 billion annually in the provision of “permanent assistance to families.” However, a main item on the Democrat's wish list was not included and that was the proposed doubling in the minimum wage to $15 per hour. However, progressives indicate they will seek separate legislation on this issue. The Hill argues that the main issue for investors is increasingly what the “overall budgetary impact of increased federal spending” will be. Last year, the federal deficit ballooned to a post-war high of nearly 14% of GDP — an increasingly controversial policy seen by many as boosting the risk of higher inflation and interest rates in the future. This view is enunciated in detail by Michael Bordo and Mickey Levy, who have studied the relationship between expansionary fiscal policies and inflation for over two centuries, the Hill says. They suggest that a key difference from the 2008 global financial crisis is the growth in the money supply which has surged this past year partly as a result of excess saving associated with COVID transfer payments. Meanwhile, the increase in federal debt outstanding has created a situation of “fiscal dominance” in which the Fed is compelled to keep interest rates low for the foreseeable future to keep the government's debt service costs manageable. For some observers, these conditions are similar to those that developed in the mid-late 1960s when President Lyndon Johnson expanded “Great Society” programs as the Vietnam War was ramping up. The initiatives included a “War on Poverty,” Medicare and Medicaid, the Head Start program, urban renewal and the Motor Vehicle Air and Pollution Control Act. When these programs were first unveiled the federal budget was close to balance and interest rates and inflation were low. Thereafter, federal spending rose by 50% as social programs expanded and costs for the Vietnam War rose. Because tax rates then were substantially higher than today (with the top marginal tax rate for households at 70%) the increase in the federal budget deficit did not rise above 3% of GDP. Nonetheless, consumer price inflation, which was only 1% at the beginning of the 1960s, rose steadily in the second half and approached 6% in 1970. The principal reason was the Fed's slow pace for interest rate increases as inflation expectations increased. The situation culminated with the first U.S. dollar devaluation in December 1971 that was the precursor of the breakdown of the Bretton Woods system of fixed exchange rates, The Hill says. By comparison, few economists today believe the economy is headed for a repeat of the 1960s and 1970s because the Fed has “regained its credibility as an inflation fighter in the 1980s and it has kept inflation at or below its target of 2% for several decades now.” Accordingly, proponents of fiscal stimulus contend low interest rates mean the opportunity costs for new programs are low. However, even if inflation does not resurface quickly with unemployment still elevated, the likelihood is that Treasury bond yields will continue to climb as the economy recovers. Ten-year yields have already increased by more than 50 basis points this year to 1.6% recently and they could reach or surpass 2% as COVID vaccines become widespread and businesses resume normal operations. Beyond the near term, the big issue is how much, or whether, government programs will be rolled back as economic conditions improve. The main cost incurred by the “Great Society” — added healthcare expenses associated with Medicare and Medicaid — did not show up immediately but grew exponentially over time. For example, U.S. spending on healthcare was only 5% of GDP when these programs were launched as compared with 18% today and federal programs now account for nearly one third of the total. Observers continue to argue that it is clear that the pace of increase of federal debt held by the public over the past decade is not sustainable: It has doubled to nearly 80% of GDP from less than 40% before the 2008 global financial crisis. Moreover, some forecasts call for further increases in the coming decade. Meanwhile, the administration is expected to unveil its plans for boosting taxes on corporations and the wealthy to help to defray some of the costs of the federal programs enacted. According to Wharton's Budget model the tally could exceed $3 trillion over the coming decade, while other forecasts call for taxes to increase between $1 trillion to $2 trillion. Only as actual tax increases are finalized, will investors have a clearer idea of the sustainability of the budgetary outlook. So, we will see. It is clear that the size and impacts of the public debt are expected to become increasingly important as new social programs are implemented — fights that are increasingly important to producers and which should be watched closely as they intensify, Washington Insider believes.
| Rural Advocate News | Monday March 15, 2021 |
Still Skepticism Over Climate Change Efforts Ahead For US Ag Policy Farmers and ranchers have expressed skepticism about a forthcoming push for climate change proposals, and their views were echoed in a Senate Ag Committee hearing Thursday on the climate situation. Senate Ag Committee Ranking Member John Boozman, R-Ark., noted his concerns that carbon credits will not benefit farmers significantly or broadly enough. “This may be a potential income stream for some producers, which is a good thing. But for others it could be cost prohibitive,” he said. Boozman stressed anxiety that Democrats would use the budget reconciliation process to pass a climate bill backed by President Joe Biden and Ag Committee Chair Debbie Stabenow, D-Mich., with minimal or no Republican support. Boozman highlighted how chicken, beef, dairy and rice industries have increased production with a significantly reduced environmental impact over recent decades. He noted how “exciting new opportunities to compensate farmers and foresters for these environmental gains hold promise,” but he cautioned there are complex barriers that must be eliminated in this uncertain marketplace. “There are costs associated with verification, validation, technical services, new technologies and equipment, and often times costs associated with reduced yields. These costs add up and can become prohibitive. For this new opportunity to be viable for producers and forest owners, the benefits must outweigh the risks and costs they take on,” he said. The American Farm Bureau Federation said it would not support a partisan climate bill.
| Rural Advocate News | Monday March 15, 2021 |
USITC Sides With Mosaic In Phosphate Fertilizer Case The U.S. International Trade Commission (USITC) Thursday voted that imports of phosphate fertilizers from Morocco and Russia are causing material injury to the U.S. phosphate industry, the result of a complaint brought by the U.S. fertilizer company Mosaic. The vote was four-to-one in the decision which followed a determination by the U.S. Department of Commerce (DOC) that the imports were subsidized by the governments of Morocco and Russia. Chair Jason Kearns, Vice Chair Randolph Stayin, and Commissioners Rhonda Schmidtlein and Amy Karpel voted in the affirmative while Commissioner David Johanson voted in the negative. DOC will now issue countervailing duty orders on imports of phosphate fertilizers from Morocco and Russia. The USITC will issue a final report Phosphate Fertilizers from Morocco and Russia that will contain the views of the Commission and information developed during the investigations. The report is to be made available by April 13. USITC will provide their determination to DOC March 30. Morocco's OCP issued a statement countering the ITC ruling, saying there is “no basis” for the imposition of a 19.97% countervailing duty on exports of phosphate fertilizer from Morocco. “Despite this decision, OCP recognizes the supply challenges that American farmers face and is determined to serve them in the future, and will explore the most appropriate options to do so,” OCP said.
| Rural Advocate News | Monday March 15, 2021 |
Monday Watch List Markets Starting a new week, traders will be checking the latest weather forecasts and take a timeout at 8 a.m. CST to see if USDA has an export sale announcement. As usual, USDA's weekly grain inspections report is set for 10 a.m. CST and this time is followed by USDA's Livestock, Dairy and Poultry Outlook at 11 a.m. and a weekly cattle slaughter summary later Monday morning. Weather Monday brings moderate to heavy snow to the north-central Plains and northern Midwest, with moderate to locally heavy rain moving through the central and southern Midwest. This storm system brought record heavy rain and snow to the western and central Plains and western Midwest during the past weekend. Moisture is beneficial for winter wheat and for drought easing, but hazardous for safety, transportation and livestock. A new system forming in the Far West will cross the Plains and Midwest later this week
| Rural Advocate News | Friday March 12, 2021 |
Senate Ag Committee Holds Climate Change Hearing The Senate Agriculture Committee held its first hearing on climate change Thursday. Committee Chair Debbie Stabenow, a Michigan Democrat, says sustainable practices farmers are using now help cut down their emissions. Stabenow says, “now it’s time to dramatically scale up this work.” Oklahoma Farmer Clay Pope, representing National Farmers Union, detailed how the Department of Agriculture helped his farm convert to no-till and cover crops. Pope says, “Our investment in soil health has helped us better prepare for climate change in a way that’s helped both our bottom line and the environment.” Cori Wittman, representing the Environmental Defense, told the committee, “we need robust investment and research” to develop methods to address agriculture’s role in climate change. Wittman called on lawmakers to support the design of voluntary, incentive-based programs. Top Republican on the Committee, John Boozman of Arkansas, says, “While protecting our climate is critical, we must avoid a heavy-handed government approach.” The committee also heard testimony from representatives of USA Rice, GROWMARK and Arizona Farm Bureau. ************************************************************************************ EPA Considers Combining 2021-22 Biofuel Blending Targets The Environmental Protection Agency is mulling over the idea to combine 2021 and 2022 biofuel blending obligations, according to a report by Reuters. The EPA has in the past combined biofuel targets after missing deadlines, most recently in 2015, when it announced 2014, 2015 and 2016 targets at the same time. Biofuel targets must be published annually under the Renewable Fuel Standard, outlining how many gallons of biofuels like ethanol and biodiesel refineries must blend into fuels. Trump administration EPA Administrator Andrew Wheeler opted to delay the announcement last year, awaiting action in a Supreme Court case. The RFS has been long plagued by a battle between the oil industry and the biofuels industry. Ethanol production reached five-year lows last month, following demand destruction from EPA small refinery exemptions and the coronavirus pandemic. However, the industry sees the Biden Administration's priority on climate as an opportunity to include biofuels in climate change policies. ************************************************************************************ AEM Reports Monthly Equipment Sales Farm tractor and combine sales continue to increase in both the U.S. and Canada, according to the Association of Equipment Manufacturers. AEM released February sales data this week, showing U.S. tractor sales were up 41 percent from the same month last year. For the first two months in 2021, more than 32,000 tractors were sold, which compares to 23,900 sold through February 2020, representing a 34 percent increase year to date. For the month, sales of two-wheel drive smaller tractors, under 40 horsepower, were up 47 percent from last year. Sales of 40 to 100 horsepower machines were up 28 percent. Meanwhile, sales of two-wheel drive 100-plus horsepower tractors were up 46 percent, while four-wheel drive tractors sales were down three percent. Combine sales were down 19 percent for the month. Sales of combines for the two months totaled 544, increasing 25 percent over the same period in 2020. ************************************************************************************ Farm Groups Welcome Senate Confirmation of EPA Administrator Farm groups welcome the confirmation of Environmental Protection Agency Administrator Michael Regan, hoping for more transparency than in previous administrations. Specifically, biofuels groups are seeking more support for the Renewable Fuel Standard. The Senate confirmed Regan to the post Wednesday. During his confirmation hearing, Regan emphasized that the "RFS is definitely a priority for this administration." Growth Energy CEO Emily Skor congratulated Regan, while saying, “Administrator Regan has been on the record supporting biofuels as critical to help meet an ambitious climate agenda.” Crop Life American President and CEO says Regan’s commitment to reaching out and working with agriculture, “will be critical in developing solutions to address climate and to enhance the credibility and transparency” at the EPA. House Agriculture Chair David Scott joined the crowd congratulating Regan. Scott says he’ll work with the new EPA administrator to “ensure EPA's pesticide registration programs remain trusted and science-based,” along with the role of the RFS to mitigate climate change. ************************************************************************************ World Pork Expo Slated to Return After Two Year Delay World Pork Expo is back on the schedule this year, following a two-year hiatus. The 2021 World Pork Expo will occur at the Iowa State Fairgrounds in Des Moines, Iowa, June 9-11. NPPC President Jen Sorenson says, "We look forward to connecting with our fellow producers, business partners and others who contribute to our nation's essential pork production system." World Pork Expo in 2019 was canceled "out of an abundance of caution" as African swine fever spread at the time in foreign nations. The coronavirus pandemic forced cancelation of the event in 2020. NPPC will continue to monitor developments in COVID-19 guidelines for World Pork Expo to ensure the health and safety of all participants. Sorenson says, “A safe event is our number one priority, adding, “We will implement appropriate precautionary measures to ensure a great experience.” Registration information will soon be available online for those who plan to attend the 2021 World Pork Expo. ************************************************************************************ NASDA CEO Announces Retirement Barb Glenn, CEO of the National Association of State Departments of Agriculture, announced she would retire from her position this fall. Serving the organization over the last seven years, Glenn has marshaled NASDA as the unified voice for agriculture, but the organization says her influence on the industry stretches over her 40-year career. Glenn says, “It has been an honor to serve state agriculture departments and amplify their united voice.” NASDA President Ryan Quarles reflected on Glenn’s contributions, saying, “Glenn has worked tirelessly for more than four decades, benefiting all who rely on agriculture.” Glenn has spent her entire career serving the agriculture community. In 2014, Glenn was selected to serve as NASDA’s CEO. Glenn will remain in her position as NASDA CEO through early fall 2021 and will assist with the transition. NASDA is a nonpartisan, nonprofit association representing elected and appointed commissioners, secretaries and directors of state departments of agriculture.
| Rural Advocate News | Friday March 12, 2021 |
Washington Insider: Searching for Broader Support in Infrastructure Bloomberg is reporting this week that a key discussion underway now concerns whether the next legislative goal be bipartisan or single-party only? The current view is that the administration will need GOP support for central parts of an expected infrastructure package which can't pass through expedited procedures. After advancing the new COVID-19 relief package without Republican support, the Biden administration and congressional Democrats have signaled interest in greater bipartisan support for infrastructure and haven't ruled out using reconciliation to achieve that. One option would let them pass a bill without Republican support in the Senate, but would limit it to provisions that affect revenue or spending. “We don't prefer going solo,” said Cedric Richmond, a senior adviser at the White House. “We may have to do that, but that's not our first choice.” Tied to the infrastructure push, lawmakers face a Sept. 30 deadline to reauthorize highway, transit, and rail programs. Analysts think that much of what Congress would do in a surface transportation reauthorization bill, including moving funds from the general fund to the Highway Trust Fund, can't be done under the current rules for budget reconciliation. That could make it harder to reauthorize highway programs at the same time enacting an infrastructure package. Reconciliation means problems for the administration's agenda because of things that “do not fit,” said Tori Gorman, policy director for the Concord Coalition, a nonpartisan group that focuses on the federal budget. Rep. Peter DeFazio, D-Ore., Chair of the House Transportation and Infrastructure Committee, said he is “not ready to take any option off the table at this point.” Rep. David Price, D-N.C., chair of the House Appropriations panel that oversees transportation, said he is working with the administration to determine the best path forward — including how to structure a major infrastructure package alongside surface transportation reauthorization. His preference is to “move forward on a robust infrastructure stimulus plan that is as bipartisan as possible,” he said. “The reconciliation process comes with a host of restrictions and limitations, but it is a potential option,” he added. Neither lawmaker described how they would approach elements of the highway bill that can't be passed under reconciliation. The Senate's Byrd Rule, adopted in the 1980s, allows reconciliation to be used only for provisions that affect the deficit and prohibits “extraneous” material if Senators enforce the rule. Analysts say the traditional way that surface transportation programs have been funded wouldn't comply with that rule. The Highway Trust Fund, the main source of federal money for highways and transit, is nearing insolvency. Last year's House infrastructure bill, which some Democrats plan to use as the template for this year, included a $145.3 billion transfer from the general fund to the Highway Trust Fund. That transfer likely wouldn't be possible in reconciliation because it wouldn't affect the deficit, said Jeff Davis, a senior fellow with the Eno Center for Transportation think tank. Outlays from the fund also wouldn't meet reconciliation requirements. Davis said highway bills passed using regular order have been able to inject funding into the trust fund to keep it solvent. “But the downside is that everything in reconciliation has to be completely on the mandatory side of the scorecard, which means that you can't really do any spending from the trust fund the way it's currently set up, and you can't do any bailout of the trust fund because those bailouts don't score,” he said. However, Congress could tweak the rate of the motor fuels tax — the main source of money for the Highway Trust Fund — under reconciliation since it would affect revenue, Davis said. Senators may also have an opportunity to include specific scoring directions in the budget resolution that would lay the groundwork for the bill passed using reconciliation, the Concord Coalition's Gorman said. The Biden administration campaigned on a $2 trillion infrastructure package to help with economic recovery and tackle climate goals. Mandatory spending on infrastructure could pass through reconciliation, but would need to follow stricter guidelines and might still face hurdles depending on decisions by the Senate Parliamentarian rules. Legislation under the Byrd Rule can't increase the deficit beyond a designated time frame, such as 10 years, so spending on infrastructure would have to be temporary or have a corresponding offset, said Zach Moller, deputy director of the Economic Program at the think tank Third Way. That restriction would make it difficult to fund larger projects like high-speed rail, which can take many years to develop and construct. So, we will see. There appears to be solid political support for infrastructure investment just now, but whether that would attract minority support in the Senate remains to be seen. This is likely to be an important debate producers should watch as it emerges, Washington Insider believes.
| Rural Advocate News | Friday March 12, 2021 |
Still Waiting On US-EU Tariff Suspensions In Aircraft Dispute The Office of the U.S. Trade Representative published the formal notice of the suspension of additional tariffs on goods from the UK for four months, with the tariff suspension effective March 4 in the civilian aircraft dispute. The UK had suspended its tariffs on U.S. goods as of January 1. But there has not yet been the formal notice on a suspension of tariffs between the U.S. and European Union (EU) that was announced this week. In announcing the two sides would suspend tariffs for four months in a bid to work out a resolution to the dispute, the countries said the suspension would be “effective as soon as the internal procedures on both sides are completed.” Presumably, that means for the U.S. side that the notice be published in the Federal Register, but so far there has been not action taken as of yet.
| Rural Advocate News | Friday March 12, 2021 |
Reuters: Biden EPA Mulling Combining 2021, 2022 Biofuel Requirements The Biden administration is mulling a plan to combine the 2021 biofuel (and 2022 biodiesel) proposed levels with those for 2022 biofuels (and 2023 biodiesel). This would not be without precedent, as there was a similar action in 2015 when the Obama administration issued the 2014, 2015 and 2016 biofuel requirements at the same time. EPA did not comment on the possibility except to say the agency was looking at options. The coming biofuel decisions are among several the Biden EPA has in front of them, including decisions on small refinery exemptions (SREs) which they say will not be made until after the U.S. Supreme Court rules in a case relative to the 10th Circuit Court decision which invalidated three SREs for the 2016 compliance year. EPA has also come out and said they now back the 10th Circuit reading, signaling that the administration may make limited use of the SREs in the future.
| Rural Advocate News | Friday March 12, 2021 |
Friday Watch List Markets The U.S. Labor Department will release its report on producer prices at 7:30 a.m. CST Friday, followed by the University of Michigan's consumer sentiment index at 9 a.m. Traders will look over the latest weather forecast and watch for any news of export sales ahead of the weekend. USDA has yet to announce any daily export sale for an old-crop grain or oilseed in March. Weather Moderate to locally heavy rain is in store for portions of the southern Plains and southern Midwest Friday. The rain will improve soil moisture for winter wheat but also brings a threat of flooding. We'll also see periods of snow in the western High Plains. Dry conditions will be in place elsewhere. The forecast continues to suggest heavy rain and snow in the central U.S. during the weekend and early next week.
| Rural Advocate News | Thursday March 11, 2021 |
American Rescue Plan Act Passes Congress Agriculture Secretary Tom Vilsack touted provisions in the American Rescue Plan Act passed by Congress this week. The House of Representatives passed the bill Wednesday afternoon, following previous Senate approval, which made a few changes to the legislation previously passed by the House. Vilsack says, “America’s farmers, ranchers and producers will reap the benefits of the American Rescue Plan as more resources flow through the economy.” In rural America, Vilsack says the plan provides significant investments to help struggling homeowners pay their mortgages, property taxes and property insurance. It expands rental assistance and funds broadband to schools and hospitals, and other community facilities. He adds, the bill “provides historic debt relief to Black, Indigenous, Hispanic, and other farmers of color who for generations have struggled to fully succeed due to systemic discrimination and a cycle of debt.” National Farmers Union says the bill “provides a lifeline” for struggling Americans and takes “several steps towards more meaningful, enduring improvements” in the food system. ************************************************************************************ Farm Groups Welcome Death Tax Repeal Legislation Legislation introduced in both the House and Senate would eliminate the estate tax. The 2017 Tax Cuts and Jobs Act temporarily doubles the estate tax exemption to $11 million per person indexed for inflation through 2025. However, without congressional action, the estate tax exemption will revert to $5.5 million per person in 2026, putting even more farms and ranches at risk. And some lawmakers are hoping to end the extension to pay for spending priorities. American Farm Bureau Federation President Zippy Duvall says, “Eliminating the estate tax removes another barrier to entry” for future family farmers. National Cattlemen’s Beef Association President Jerry Bohn says, “The estate tax disproportionately harms cattle producers because with few options to pay off tax liabilities," while announcing the organization's support for the bills. The effort, however, is largely symbolic. Previous efforts failed to gain traction during the Trump administration, when Republicans controlled both the House and Senate. ************************************************************************************ USDA Delays Signup for Conservation Reserve Program Grasslands The Department of Agriculture is postponing the Conservation Reserve Program Grasslands signup originally planned to start mid-March. Announced this week, USDA is currently evaluating the program and ways to increase enrollment. The Department says it will announce new signup dates in the coming weeks. CRP Grasslands helps producers and landowners protect grassland while enabling grazing activities to continue. Lands enrolled support grazing operations and promote plant and animal biodiversity. Lands are also protected from being developed. Timing of some activities, such as haying or mowing, may be restricted by the primary nesting season of birds. The CRP general signup began January 4, 2021. USDA’s Farm Service Agency extended the original deadline, and a new deadline has not been set. This signup includes increased opportunities for enrollment of wildlife habitat through the State Acres for Wildlife Enhancement initiative. The program provides annual rental payments for 10 to 15 years for land devoted to conservation purposes. ************************************************************************************ Lawmakers Call on USDA to Support Biofuels Industry A group of Senators wants the Department of Agriculture to assist biofuel producers hurt by the COVID-19 pandemic. The group includes Republican Senators John Thune and Mike Rounds of South Dakota and others, led by Iowa Republican Chuck Grassley and Minnesota Democrat Amy Klobuchar. Additional funding was added to the Commodity Credit Corporation by the Coronavirus Aid, Relief, and Economic Stabilization Act. The lawmakers request Agriculture Secretary Tom Vilsack "use this explicit authority to aid the nation's biofuels industry." The Trump administration claimed using the funds would go against congressional intent. The lawmakers tell the Joe Biden administration that the funds are intended for the biofuels industry. The Senators write to Vilsack, “We have been encouraged by your recent statements at your confirmation hearing that you will fully utilize USDA resources to get biofuel producers back on track and will aid the Biden Administration in restoring the integrity of the Renewable Fuel Standard.” ************************************************************************************ Lawmakers Introduce Legislation to Create an Intelligence Office in USDA A Group of House Representatives this week introduced the Agricultural Intelligence Measures Act. The bill would establish an Office of Intelligence within the Department of Agriculture. The lawmakers say the office would utilize the intelligence community to ensure the Secretary of Agriculture is fully informed of all imminent threats to American agriculture. The highly specialized office would work to understand any efforts to steal U.S. agriculture knowledge and technology and develop or implement biological warfare attacks, cyber or clandestine operations, or other means of sabotaging and disrupting the agriculture industry. Introducing the bill, Arkansas Republican Representative Rick Crawford states, "the complex supply chain and invaluable nature of the agriculture industry means it is particularly vulnerable." Crawford adds that "Agriculture security is national security," calling the legislation a critical first step to safer food, farms and a safer future. Co-sponsor, Ohio Republican Representative Mike Turner, adds, the legislation “will help safeguard the agriculture industry” from foreign and domestic threats. ************************************************************************************ State Officials Recommend Enhancements to Farmers to Families Food Box Program State agriculture officials ask Agriculture Secretary Tom Vilsack to provide recommend adjustments to the Farmers to Families Food Box Program. The National Association of State Departments of Agriculture this week outlined recommendations to promote equity in farmers’ access to the program and remove unnecessary barriers of entry. Recommendations include considering the adverse impact on smaller farms when awarding contracts based on price, enabling vendors to curate boxes based on local preference and availability of food, and encouraging the participation of socially disadvantaged farmers. NASDA CEO Dr. Barb Glenn states, “with some enhancements, we can extraordinarily expand the benefits of the program by allowing more producers to contribute and increasing the amount of food we can share.” NASDA members voted during the NASDA 2021 Winter Policy Conference to advocate for changes to the Farmers to Families Food Box program based on feedback from their relationships with farmers, ranchers, vendors and food box recipients.
| Rural Advocate News | Thursday March 11, 2021 |
Washington Insider: Modified USDA Biodiesel Reports Coming Vegetable-based fuels are important markets for U.S. producers and future growth is expected. On the basis of biodiesel's environmental benefits, ease of use, availability of federal and state financial and other incentives, and the federal Renewable Fuels Standard Program contributed to the growth in U.S. biodiesel consumption/demand from about 10 million gallons in 2001 to about 2 billion gallons in 2016. The growth came in spite of reduced consumption (and imports) in 2017 through 2019 because of duties imposed in 2017 on imports from Argentina and Indonesia. This policy effectively removed all of those imports from U.S. supply in 2018 and 2019, EPA says. U.S. renewable diesel production, imports, and consumption are concentrated in California where nearly all of U.S. production and all imported renewable diesel are consumed “mainly because of the economic benefits for its use in California under California's Low Carbon Fuel Standard.” This week, Reuters is reporting that USDA and the U.S. Department of Energy plan to change two closely watched monthly reports to account for the rapid growth of the fuel. The report cited government sources and indicated that “surging demand for renewable diesel is part of a larger global transition to green fuels and could increase prices of crops such as soybeans and canola it is derived from.” Reuters said details about the planned new reports came from USDA's monthly World Agriculture Supply and Demand Estimates. The changes are expected to be in place as early as this spring, an agency official told Reuters. They would be included “only after the U.S. Energy Information Administration begins reporting more detailed data on the renewable diesel sector,” Keith Menzie, an economist at USDA's World Agricultural Outlook Board told Reuters. The EIA is planning to begin incorporating renewable diesel data in its Petroleum Supply Monthly report, with a goal to publish data for January by the end of this month, the agency said. The unusual change to USDA's WASDE report, viewed as the “global gold standard” of agricultural commodities data, would reflect the strong demand potential for soyoil at a time U.S. soybean supplies are the lowest in years. "We're taking our lead from EIA. When they start publishing data, we will add that to the WASDE table," Menzie said. "It could be as soon as May." Reuters notes that “renewable diesel” can power conventional engines without being blended with diesel derived from crude oil, making it attractive for refiners aiming to produce low-pollution options. Production of the fuel is expected to nearly quintuple over the next three years, according to investment bank Goldman Sachs. It uses a variety of feedstocks ranging from plant oils and animal fats to used cooking oil. The USDA's updated soyoil supply-and-demand forecast would combine information on use by biodiesel producers and renewable diesel producers to adhere to its reporting confidentiality guidelines, Menzie said. "This will allow us to be more granular in terms of the energy component and the food component," he said. Soyoil use by renewable diesel producers is currently included in a broad category of data that also includes use in food and livestock feed. The U.S. Energy Information Agency notes that most of the large trucks, buses, and tractors in the United States and around the world have diesel engines and that diesel-powered cars and light trucks are common in many countries. Most “diesel fuel” is refined from crude oil—"petroleum diesel.” Biomass-based diesel fuels are made from biomass or materials derived from biomass and include biodiesel and renewable diesel. They are mostly produced for use in diesel engines, but they can also be used as distillate heating fuels. Both fuels can be used as direct substitutes for petroleum diesel and provide the same vehicle fuel economy as petroleum diesel fuel does. In 2019, the United States consumed about 43 million barrels of biomass-based diesel fuel, nearly all consumed as biodiesel blends with petroleum diesel and data has not previously been reported specifically for renewable diesel consumption. However, the EPA estimates that total U.S. renewable diesel consumption was about 900 million gallons. Many countries encourage the use of biodiesel. In 2001, total world biodiesel consumption was about 0.3 billion gallons in at least 56 countries. U.S. consumption accounted for about 22% of the global total in 2016. So, we will see. It is no surprise that the new administration's programs will include additional support for biofuels, a move that can be expected to have positive price and returns impacts for producers, Washington Insider believes.
| Rural Advocate News | Thursday March 11, 2021 |
Former House Ag Chair Peterson To Join Combest, Sell Former House Ag Committee Chairman Collin Peterson, D-Minn., will join the Washington lobbying firm of Combest, Sell & Associates to “form a bipartisan alliance to protect and promote rural American and U.S. farmers and ranchers,” according to a release from the firm. Peterson his “vast experience” in an advisory and consulting role with Combest Sell & Associates, but will not be able to lobby in the near term due to restrictions on former lawmakers—Peterson was defeated in his reelection bid in November. Though unable to lobby, the firm said Peterson would “engage with current and future Combest Sell clients who seek to promote and protect policies that bolster U.S. agriculture and rural America.” Noting that that they can come at issues from “different political perspectives,” Tom Sell said teaming up with Peterson will promote “a dynamic and diverse U.S. ag sector rooted in the family farms that bring stewardship and entrepreneurial creativity to the critical work they perform each day.” Peterson said of joining the firm that Combest Sell has a “strong reputation” with their work on ag issues and that they now “we hope to raise the bar for all those affected by farm and food policy—providing wise counsel and building the case for strong and fair policies going forward.”
| Rural Advocate News | Thursday March 11, 2021 |
USDA's Vilsack Discusses Ag, Trade Issues With EU Counterpart USDA Secretary Tom Vilsack spoke with European Union Commissioner for Agriculture and Rural Development Janusz Wojciechowski Tuesday, focusing on “environment, rural economies, and trade,” according to an email sent to news organizations from a USDA spokesperson. “The secretary stated that he looks forward to a positive working relationship with the EU, as our shared interests should help us find positive solutions to challenges facing agriculture, and address longstanding issues.” From the European side, Wojciechowski said on social media, “1st exchange with new US Secretary for Agriculture, Tom Vilsack. Happy to share similar views on issues of common interest such as sustainability, climate change and organics, where active bilateral cooperation is needed.” He also noted that “collaboration is crucial for both sides.” He also pointed to the suspension of tariffs in the civil aircraft dispute and agricultural quotas for the US following Brexit as signs of “positive bilateral work.” Reports indicate Vilsack did not focus on the EU Farm to Fork initiative, an effort heavily criticized by the Trump administration as potentially reducing EU food supplies and setting new trade barriers in place. Initial sessions between government officials are usually short on any substantive results and usually are characterized as positive or constructive by the officials involved. Future discussions on key areas of trade and ag policy will be even more important to monitor for those reasons.
| Rural Advocate News | Thursday March 11, 2021 |
Thursday Watch List Markets USDA's weekly export sales report, U.S. jobless claims and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CST Thursday. Traders will pause at 8 a.m. to see if USDA has an export sale announcement and check the latest weather forecasts for both South and North America. The U.S. Energy Department reports on natural gas inventory at 9:30 a.m. Weather Light to moderate rain showers are in store from the southeastern Plains through the southern and eastern Midwest Thursday. We'll also see periods of snow in the extreme northern Midwest. Other primary crop areas will be dry. A storm system bringing snow to the Intermountain West is on track to be a heavy rain and snow producer in the central U.S. during the coming weekend.
| Rural Advocate News | Wednesday March 10, 2021 |
Little Change in Latest WASDE Report The Department of Agriculture's latest World Agriculture Supply and Demand report offered little change from February estimates. Released Tuesday, this month's 2020/21 U.S. corn supply and use outlook is unchanged from last month. The projected season-average farm price is unchanged at $4.30 per bushel. U.S. soybean supply and use projections for 2020/21 are mostly unchanged this month. With soybean crush and exports projected at 2.20 billion bushels and 2.25 billion bushels, respectively, ending stocks remain at 120 million bushels, down 405 million from last year's record. The U.S. season-average soybean price is projected at $11.15 per bushel, unchanged from last month. Although current cash prices are significantly higher, prices received through January have averaged just over $10.00 per bushel, reflecting forward pricing at lower prices. The supply and demand outlook for 2020/21 U.S. wheat is mostly unchanged this month, but there are offsetting by-class changes to exports and imports. The season-average farm price is unchanged at $5.00 per bushel. ************************************************************************************ January Red Meat Exports Below Year-Ago Levels Amid Transportation, Labor Challenges U.S. beef and pork exports opened 2021 below the large volumes posted a year ago, according to the U.S. Meat Export Federation. Beef exports totaled 105,000 metric tons in January, down two percent from a year ago, while value slipped three percent to $653 million. The decline was mainly due to lower beef variety meat shipments, as muscle cut exports were steady and accounted for a larger share of production than a year ago. January beef exports were strong to South Korea and continued to gain momentum in China. Following a down year in 2020, exports also rebounded to the Middle East. January pork exports totaled 248,600 metric tons, down nine percent from a year ago but slightly above USMEF's projections. Export value was down 13 percent to $642.8 million. Pork muscle cut exports were down 11 percent in volume and 15 percent in value, while pork variety meat shipments trended modestly higher than a year ago. ************************************************************************************ USDA Extends Free Meals to Children through Summer 2021 Due to Pandemic The Department of Agriculture Tuesday announced the nationwide extension of waivers that allow all children to continue to receive nutritious meals this summer when schools are out of session. These flexibilities are now available through Sept. 30, 2021. USDA is extending the waivers to provide local program operators with clarity and certainty for the summer months ahead, when many children cannot access the school meals they depend on during the academic year. The waivers were previously extended only through June 30, 2021. Agriculture Secretary Tom Vilsack says, “We will do everything we can to make sure children get access to healthy.” The waivers extended Tuesday allow for safe meal distribution sites that serve all children for free, regardless of income. The waivers also allow meals served through the Summer Food Service Program and Seamless Summer Option – collectively known as “summer meal programs” – to be made available in all areas at no cost. ************************************************************************************ Application Deadline for REAP Program is Nears The application deadline for the Rural Energy for America Program, or REAP, is quickly approaching on March 31, 2021. The REAP program is designed to help rural businesses and farmers to purchase or install renewable energy systems or make energy efficiency improvements. Funds may be used for the purchase, installation, and construction of renewable energy systems, such as a $2,500 minimum and $500,000 maximum grant. The loan guarantee percentage is published annually in a Federal Register notice. REAP loans approved in Fiscal Year 2021 will receive an 80 percent guarantee. Grants are for up to 25 percent of total eligible project costs, and combined grant and loan guarantee funding is up to 75 percent of total eligible project costs. Grants can be used for projects including biomass, geothermal use, hydropower, wind generation and solar. Other examples include energy efficiency improvements, insulation, lighting, refrigeration units, doors and windows and switching irrigation from diesel to electric. Contact your USDA Service Center to learn more. ************************************************************************************ Sheep Genetics USA Looks to Guide Research The sheep industry seeks genetic research and implementation through Sheep Genetics USA. Unveiled at the 2021 American Sheep Industry Convection, the program is a bridge that will provide a pathway for the American sheep industry to the innovations of the future. Producers of the National Sheep Improvement Program this week say, "For several years, there's been interest in creating a structure that could represent all of the breeds of sheep." The driving force behind these changes will be the producer members of Sheep Genetics USA, a group that will include representation from all aspects of the industry. Seedstock producers, commercial producers, lamb feeders, researchers and consumers will be represented within the group. Much of the early work of Sheep Genetics USA has been based on the Beef Improvement Federation. Organizers have consulted with that group on the pitfalls faced in forming an organization geared toward genetic improvement in livestock. To learn more, visit SheepGeneticsUSA.org. ************************************************************************************ Farmers Business Network Launches Animal Health and Nutrition Platform Farmer's Business Network Tuesday launched an animal health and nutrition platform by acquiring the Prairie Livestock Supply business. FBN claims the move will provide more choice for independent livestock producers and more competition for their business. The acquisition adds Prairie Livestock Supply, a pharmaceuticals supplier for swine, beef, dairy, and poultry, and ProPig and ProCattle, a feed and nutrition services provider, to the FBN portfolio. The acquisition adds a team of 40 professionals, including veterinarians, animal health sales specialists, and nutritionists with expertise in swine, beef, dairy and poultry. FBN members in select states can now also access clinical veterinary services for beef cattle, swine, and dairy through FBN partners. With industry consolidation and increasing consumer interest in how food is produced, FBN says it “recognizes that livestock producers need every tool possible to maximize their profit potential and sustainability.” FBN’s Charles Baron says, "Improving both the producer economics and environmental sustainability of livestock is the best way to ensure farms are family-run for generations to come."
| Rural Advocate News | Wednesday March 10, 2021 |
Washington Insider: US and China Diverge on Stimulus Plans Bloomberg is reporting this week that the U.S. and China are pursuing very different economic policies in the aftermath of the coronavirus recession — a role reversal since the last time the world economy recovered from a shock. One of the takeaways from the annual National People's Congress under way in Beijing now is a conservative growth goal, with a tighter fiscal-deficit target and restrained monetary settings, Bloomberg says. It notes the contrast with Washington and with the president's second major fiscal package now reaching final approval. This widening policy divergence is putting strains on exchange rates and could potentially reshape global capital flows. It stems, in part, from different policy lessons from the 2007-09 crisis. A stunted and choppy U.S. recovery in the 2007-09 period left key Democrats concluding it's vital to “go big” on stimulus and keep it flowing, Bloomberg said. For monetary policy the moral was: “Don't hold back” and “don't stop until the job is done,” Federal Reserve Chair Jerome Powell said last week. China's leaders have a different take and different history. A massive unleashing of credit growth back then led to unused infrastructure, ghost towns, excess industrial capacity and an overhang of debt. While rapid containment of the pandemic meant the economy didn't need as much help in 2020, President Xi Jinping and his team are now winding things back to re-focus on longer-term initiatives to strengthen the technology sector and tamp down debt risks. This puts the world's two biggest economies on very different fiscal recovery paths. “Each learned a lesson from the previous episode,” said Nathan Sheets, head of global economic research at PGIM Fixed Income and a former U.S. Treasury undersecretary for international affairs. The policy mix now makes “a compelling case for renminbi appreciation,” he said. That's a view that's widely shared, Bloomberg thinks and it notes that the median forecast based on a recent survey is for a strengthening to 6.35 by the renminbi against the dollar by the end of the year, from 6.5114 in Shanghai late Tuesday. One of China's financial regulators, Guo Shuqing, highlighted in a briefing just days before the opening of the its legislative gathering that high leverage within the financial system must continue to be addressed. Guo pointed to worries about inflated property prices and the risk of overseas money pouring in to take advantage of the premiums China's assets offer. He also indicated the nation's lending rates will likely go up this year. Bloomberg said its economists believe that China is “increasingly shifting its attention from pandemic recovery to managing the economy in more normal conditions.” “Unlike many of its peers, including the Fed, China's central bank has continued to calibrate its policy partially with a view to prevent an excessive rise in asset prices,” said Frederic Neumann, co-head of Asian economics research at HSBC Holdings Plc in Hong Kong. In three appearances in the past fortnight, Fed chair Jerome Powell has made clear that the Fed plans to keep policy rates near zero until well into the economic recovery, when most jobless Americans are brought back into employment. As China contends with capital inflows, the U.S. is likely to be pumping out a greater supply of dollars into the global economy — via a widening current-account deficit — as its growth revs up, supercharged by the coming stimulus and the Fed's easy stance. The U.S. approach is very different with its “outsized” coronavirus relief bill and a planned longer-term follow-up, said Robin Brooks, chief economist at the Institute of International Finance. As growth soars past 6% this year, a wider current-account deficit will be “the pressure valve” given domestic production constraints, he said. Brooks projects that deficit will hit 4% of gross domestic product this year — the highest since large shortfalls during the 2002-08 period. China's reluctance toward the kind of “go big” message of Treasury Secretary Janet Yellen dates back several years. After unleashing a fiscal package of 4 trillion yuan ($586 billion, at the time) and an unprecedented surge in broader credit after the 2008 crisis, Beijing was already by 2012 saying it wouldn't do that again. This reticence later turned into a concerted push to rein in leverage. A May 2016 front-page treatise in the People's Daily blasted excessive debt as the “original sin” sowing risks across financial and real-estate markets. The anonymous article — widely said to have been written by Vice Premier Liu He, Xi's top economic adviser — called stimulating the economy through easy monetary policy a “fantasy.” So with the country's success in applying draconian restrictions to contain the coronavirus, it should come as little surprise that Beijing is returning toward its pre-pandemic focus on building domestic tech capabilities and managing down debt risks. By contrast, “the U.S. locomotive is back on track,” said Catherine Mann, global chief economist at Citigroup Inc. So, we will see. The very large fiscal interventions likely will make the U.S. economy fairly difficult to manage and at least somewhat more vulnerable to shocks — developments producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday March 10, 2021 |
USDA Seeks Comments On Food Programs USDA is seeking public comment by March 31 on deploying aid to the U.S. food industry that was contained in the December COVID aid plan. The Ag Marketing Service will also hold a listening session March 19 via Zoom on the topic. The December aid plan would provide no less than $1.5 billion to purchase food and agricultural products, including seafood, fresh produce, dairy, and meat products, to distribute to individuals in need, including through delivery to nonprofit organizations that can receive, store, and distribute food items, and for grants and loans to small or midsized food processors or distributors, seafood processing facilities and processing vessels, farmers markets, producers, or other organizations to respond to coronavirus, including for measures to protect workers against COVID–19. The agency said it was specifically seeking feedback from “smaller businesses, new and beginning farmers and ranchers, socially disadvantaged producers, veteran producers, and underserved communities, and/or organizations representing these entities.” The agency is also seeking feedback by March 31 on a “food purchase and distribution program intended to provide additional aid to nonprofits serving Americans in need of nutrition assistance.” The program, “If implemented… will serve as a successor to the temporary food box purchase program created in April 2020 in response to the rapidly developing crisis within the food supply chain and increased joblessness due to COVID-19.” The agency said while the Food Box program did work well in some areas, there were issues in others. A March 22 listening session via Zoom is planned for that effort. It is still fully expected that some form of the Food Box program will continue in the future even as it could be modified and potentially renamed
| Rural Advocate News | Wednesday March 10, 2021 |
FSA Notes ARC/PLC Enrollments Still Lag The March 15 deadline for enrollment in the Ag Risk Coverage (ARC) and Price Loss Coverage (PLC) safety net programs is approaching and there is still a swath of farms that have not yet been enrolled, according to the Farm Service Agency (FSA). The agency said that 1.4 million farms have been enrolled in the program, or about 81% of what they agency said is typically enrollment of 1.7 million farms out of the 2.3 million farms in the U.S. that have base acres. The level the agency announced Monday is up from 1.29 million as of March 1. FSA offices “in many instances” have used appointments that go beyond the March 15 deadline and those are going to be considered being on a “register” for enrollment. FSA said that counties are not to use a register unless the producer requests an appointment after March 15 or the county cannot complete the activity by March 15. All enrolled contracts are required to be approved within 30 calendar days after the enrollment deadline, FSA noted, and those on the register are to be completed “as soon as possible” after the March 15 deadline.
| Rural Advocate News | Wednesday March 10, 2021 |
Wednesday Watch List Markets Inflation-watchers will keep an eye on the Labor Department's report of consumer prices for February, due out at 7:30 a.m. CST. At 9:30 a.m., the Energy Department will release its weekly report of energy inventories, including ethanol. The U.S. Treasury reports on the federal budget for February at 1 p.m. CST. Weather and exports will also be part of traders' attention. Weather Wednesday features a swath of moderate to locally heavy precipitation across the northern Plains and northern Midwest, occurring as rain east and snow west. Areas south of the precipitation swath will have very windy and warm conditions including widespread fire threat in the southern Plains.
| Rural Advocate News | Tuesday March 9, 2021 |
USDA to Investigate Government’s Role in Spread of COVID-19 in Meat Processing Facilities The Department of Agriculture’s Office of the Inspector General is initiating an audit of USDA actions that may have contributed to the spread of the COVID-19 in meat processing facilities. The USDA OIG initiated the audit in response to Senator Michael Bennet's request, a Colorado Democrat, who asked for an investigation last August. Bennet says high infection rates early in the pandemic at meat processing plants raise "serious questions about any federal actions that may have contributed to the spread of the virus." The USDA OIG investigation will address Bennet's specific concerns in his August letter, including inquiries into USDA actions following the executive order that invoked the Defense Production Act. USDA will also review department actions taken to communicate the federal government's authority, standards, and expectations with State Departments of Health and USDA actions to ensure inspectors' health and safety and protocols in response to COVID-19 positive tests at meat processing facilities. ************************************************************************************ U.S. Dairy Industries Unite in Seeking Canadian TRQ Administration Reform U.S. dairy groups Monday issued joint comments on Canada’s Phase II Consultations on its Comprehensive Review of the Allocation and Administration of Tariff Rate Quotas for Dairy, Poultry, and Egg Products. The groups include the U.S. Dairy Export Council, the National Milk Producers Federation and the International Dairy Foods Association. The three organizations, which have repeatedly expressed concerns on the issue related to commitments in the United States-Mexico-Canada Agreement, are united in that Canada must dramatically reform its policies regarding the administration and allocation of its TRQs. The joint comments elaborate on those TRQ compliance concerns, outlining that the U.S. dairy industry insists upon realizing the full benefit of the USMCA market access Canada committed to provide. In 2020, the United States exported almost $676 million in dairy products to Canada, well short of the gains estimated to occur under USMCA by the U.S. International Trade Commission in its 2019 report. ************************************************************************************ U.S. Biofuels Industry Supportive of Proposed Canada Clean Fuel Regulations U.S. biofuels and grains organizations welcome Canada’s proposed Clean Fuel Regulations. Growth Energy, the U.S. Grains Council and the Renewable Fuels Association submitted joint comments to Environment and Climate Change Canada last week on the proposal. The groups say, “The proposed regulation takes a market-based approach to driving carbon reductions in the Canadian fuels market, providing an attractive model for other countries to follow.” The groups add Canada should be applauded for showing global leadership on the implementation of a clean fuel standard. In their comments, the organizations noted the importance of allowing renewable fuel producers to account for carbon capture and sequestration in their carbon intensity scores, regardless of whether the fuel is produced in Canada or the United States. This regulation, the groups say, coupled with the recent announcement in the United Kingdom that it is moving from E5 to E10 by September, shows that more countries are committed to expanding the role of biofuels in meeting their Paris Agreement commitments and long-term environmental goals. ************************************************************************************ NASA Data Powers New National Agricultural Statistics Service Soil Moisture Portal Farmers now have access to high-resolution NASA data on soil moisture thanks to a new tool developed by the National Agricultural Statistics Service in collaboration with NASA. The tool, Crop Condition and Soil Moisture Analytics, provides access to high-resolution data from NASA’s Soil Moisture Active Passive mission. Soil moisture data are critical for professionals in the agriculture and natural resource sectors who use soil moisture in tandem with other data to plan crop planting, forecast yields, monitor droughts or floods, and improve weather forecasts. According to Rajat Bindlish, a research associate in Earth science remote sensing at NASA’s Goddard Space Flight Center in Greenbelt, Maryland, the tool provides more thorough spatial coverage and consistency than other soil moisture measurement methods. Bindlish says, “This will provide a means of using NASA remote sensing data to guide predictions of moisture conditions and water availability. The tool is available for free online (https://cloud.csiss.gmu.edu/Crop-CASMA/). ************************************************************************************ USDA Invests $285 Million to Improve National Forest and Grassland Infrastructure The Department of Agriculture will invest $285 million to help the Forest Service. Announced Monday, the investment will help address deferred maintenance and improve transportation and recreation infrastructure on national forests and grasslands. The $285 million investment comes from the newly created National Parks and Public Land Legacy Restoration Fund. The fund was established in 2020 by the Great American Outdoors Act. The funding allows the Forest Service to implement more than 500 infrastructure improvement projects essential to the continued use of national forests and grasslands. Agriculture Secretary Tom Vilsack says, “these investments will promote public-private partnerships, tourism and recreation, protect public lands, and ensure our national forests are accessible to all.” Investments in 2021 will improve recreation facilities, visitor centers, dams and trails. Other projects aim to increase public access by restoring and repairing roads, trails, bridges, tunnels and parking areas. The Great American Outdoors Act authorizes funding under the Legacy Restoration Fund annually through fiscal year 2025. ************************************************************************************ Missouri Senator Blunt Won’t Seek Reelection Missouri Senator Roy Blunt will not seek reelection following his current term. Senator Blunt made the announcement in a video Monday, while referencing his roots growing up on a Missouri dairy farm. He’s one of now five Republican Senators who have announced retirement after their current term expires. Other notable Republican Senators to agriculture, Chuck Grassley of Iowa and Ron Johnson of Wisconsin, have not yet announced their intentions for another term or retirement. The Missouri Farm Bureau called Senator Blunt a “tireless champion” for Missouri Agriculture. Missouri Farm Bureau President Garrett Hawkins states, “Our farmers and ranchers have been blessed to work with him in support of agriculture and Missouri values,” adding, “We look forward to working with Senator Blunt during his remaining time in office.” The 71-year-old Blunt was first elected to serve in Washington to the House of Representative in 1996, before moving on to the Senate in 2011.
| Rural Advocate News | Tuesday March 9, 2021 |
Washington Insider: Administration Setting Stage for Infrastructure Bill The Washington Post is reporting this week that White House is not shying away from extolling the implications of the recent $1.9 trillion coronavirus relief bill — one of the most expensive recent pieces of legislation in terms of its single-year impact. Instead, we are already seeing an enthusiastic pitch for spending that will set the stage for President Joe Biden's wide-ranging jobs and infrastructure bill that's expected to come next — with an even higher price tag, the Post says. The approach is a departure from the Obama-Biden approach, as White House Press Secretary Jen Psaki recently noted. She said that administration had insufficiently explained "to the American people the benefits" from the stimulus passed in the 2009 economic crisis "in terms that people would be talking about at their dinner tables." The Post says the new proposals will “also reflect the evolution of the politics on deficit spending and diminished potency of attacks on federal spending programs. “Even though deficits are higher this time around, centrist Democrats are more unified behind passing the measure and the GOP rejected it "but in a more muted fashion than in 2009," the report said. However, the Post also argues that the infrastructure package “is likely to be a harder sell.” Democrats are considering as much as $3 trillion in new spending for the cornerstone of the president's "Build Back Better" program. It will need to clear 60 votes in the divided Senate and Republicans, who criticized Biden for ditching his bipartisan approach to pass the COVID relief bill without any Republicans, are describing the infrastructure plan as "bad politics" and "wildly expensive" and are indicating they eventually intend to campaign against it. Democrats, by contrast, plan to go on the offensive — and to argue that the relief package is badly needed and overwhelmingly supported by an American public amid a health crisis that's killed 524,000 people in the U.S. The Post said that Democrats claim that "everything we are seeing in our polling” is that the Build Back Better framework, including its emphasis on clean energy investments, is as popular as the American Rescue Plan has been. “If Republicans are as obstructionist about that as they were about the rescue bill, they will pay a similar political price," the report said. Looking back, Democrats also argue that former President Trump upended the GOP's commitment to smaller deficits over the course of his four years in the White House. "It's been a major shift. People have gone from being anti-government to beyond being even neutral, to believing that the government “has to help us,” former Congressman Barney Frank, D-Mass., told the Post. "You have a new consensus in America — that the government has an important role. For the first time in my lifetime, people are saying that the government has done too little rather than doing too much," Frank said. The Post also reported that Democratic lawmakers and aides say they have heard very few complaints from constituents about “concerns that the relief plan will drive up the deficit. Even senators representing states that President Trump won by huge margins, such as Jon Tester, D-Mont., have gone along with the bill's price tag," the article said. The Post also notes that former Obama adviser Dan Pfeiffer called the plan a "huge accomplishment" and that Democrats will get credit for doing the right thing and Republicans will only get blame for doing the wrong thing if people know about it," Pfeiffer wrote in his newsletter. The Post says that the White House is glossing over disputes over the minimum wage and unemployment insurance that showed cracks in Democrats' narrow majority — and argue that President Biden has no plans of resting on any laurels. "There's still much more to be done and absolutely no room for complacency," the White House wrote. "We're racing to finalize passage of this bill, and the President looks forward to signing this into law. And then the real work will begin." The Post article also included what it called a “reality check, the real disagreements between the Democratic Party's liberal and centrist wings, as well as Biden's instincts for procedure and bipartisanship. These and other disputes over the past week on issues ranging from the minimum wage to a new budget director also provided fresh warning signs for the rest of the administration's priorities, which will require a unified Democratic Party and little room for error against Republican opposition," the Post noted. So, we will see. Crafting an infrastructure bill that is anywhere near as widely supported as the COVID relief bill has been will be extremely tricky and will certainly attract more bitter opposition — as well as new support. This will be a program that will directly affect producers' interests and which should be closely watched as the effort gets underway, Washington Insider believes.
| Rural Advocate News | Tuesday March 9, 2021 |
USDA Reopens Comment Period On Regulation Of GMO Animals USDA has now reopened the comment period on its notice of proposed rulemaking USDA published in December which stated USDA would be the agency responsible for regulating animals produced via genetic modification. The comment period on USDA's notice ended February 28. But USDA today published a notice in the Federal Register that they have reopened the comment period and it will now close May 7 on the proposed rulemaking “establishing regulations for the movement of certain animals modified or developed by genetic engineering.” The action by USDA took some by surprise as it marked the agency wresting control of the issue from FDA. It is not clear whether the reopened comment period reflects any potential shift back to FDA on the topic.
| Rural Advocate News | Tuesday March 9, 2021 |
US Ag Exports Edge Down But Remained Strong In January U.S. agricultural exports totaled $15.47 billion in January, down slightly from the monthly record of $15.91 billion registered in December. But it still marked a fourth straight month of U.S. ag exports topping $15 billion, something that has not been seen based on data going back to the 1970s. Ag imports rose to $12.83 billion, a new record, and up from $11.65 billion in December. That left a trade surplus of $2.65 billion for January. So far in Fiscal Year (FY) 2021, U.S. ag exports total $62.05 billion against imports of $47.46 billion for a surplus so far of $14.59 billion. USDA is currently forecasting FY 2021 ag exports at $157 billion and imports at a record $137.5 billion which would leave a trade surplus of $19.5 billion. The situation with ag exports clearly reflects China's stepped-up purchases (and shipments) of U.S. ag goods and has translated into U.S. ag exports above $15 billion for four straight months. But the rise in imports to a new record has come earlier than usual — typically the high-water marks for imports come during the March-May timeframe. That suggests expectations are that the monthly trade data ahead will see the gap between export and import values continue to narrow.
| Rural Advocate News | Tuesday March 9, 2021 |
Tuesday Watch List Markets USDA's WASDE report, set for 11 a.m. CST is the highlight of the day with no other significant reports on Tuesday's docket. As usual, traders will keep an eye on the latest weather forecasts and watch for any export sales that might emerge. Weather Dry, windy and warm conditions will cover most primary crop areas Tuesday. Fire danger will be high in the southwestern Plains. Rain and snow move into northern crop areas Wednesday, followed by precipitation in southern areas at the end of the week.
| Rural Advocate News | Monday March 8, 2021 |
Agriculture Responds to Senate Passage of $1.9 Trillion COVID Package The Senate Saturday passed the $1.9 trillion COVID-19 relief package. The package, known as the American Rescue Plan, will extend federal unemployment benefits, offer up to $1,400 in direct payments to individuals earning less than $80,000, and increase funding for several nutrition assistance programs. Additionally, it authorizes several provisions to bolster rural and agricultural communities, including a pilot program to facilitate the distribution of vaccines and other medical supplies in rural areas, debt relief for historically disadvantaged farmers, and $4 billion to build resilience in the food system. National Farmers Union President Rob Larew says, “This legislation provides a lifeline that will help keep families afloat until their hardships subside. Agriculture Secretary Tom Vilsack stated, “I am grateful to the U.S. Senate” for passing the bill, adding the American Rescue Plan is historic, “namely for the transformative debt relief it provides to Black, Indigenous, Hispanic, and other farmers of color.” Vilsack says USDA stands ready to these important provisions of the bill once it clears Congress and is signed into law by President Joe Biden. ********************************************************************************************** Drought Conditions Persist in the Main Corn Growing States As farmers are ramping up toward planting season, drought conditions continue in many of the top corn-growing states. Last week, the U.S. drought monitor showed 11 percent of Midwest acres are in moderate drought. Over half of the High Plains are in a severe drought, and 19 percent of the region is experiencing extreme drought conditions. For example, Iowa, the number one corn-producing state, faces extreme drought conditions in the northwest part of the state. Roughly 10 percent of Iowa is in a severe drought. Soil moisture is more favorable in Illinois, but the central part of that state is abnormally dry. A small part of the east-central region is in moderate drought. Nearly all of Nebraska faces some moisture stress at this point, with the southwest corner of the state in extreme drought. The entire state of Minnesota is abnormally dry, with about 40 percent of the state, especially in the northern third, in moderate drought. Only nine percent of the acres in Indiana are in moderate drought, primarily in the northwest part of the state. More than half of Kansas is abnormally dry, while drought conditions are severe in half of South Dakota. Ohio and Missouri have much less drought to deal with than other states. About 61 percent of Wisconsin is abnormally dry, with almost half of Michigan in the same category. ********************************************************************************************** Corn Export Sales Drop to New Marketing-Year Low Point Export sales dropped to a new low in the marketing year last week, while soybeans and wheat sales improved. USDA data says corn sales to overseas customers dropped to 115,900 metric tons in the seven days that ended on February 25. That’s 74 percent lower than the previous week and 96 percent lower than the prior four-week average. Sales were still solid to China as the southeast Asian nation bought 1.05 million metric tons of corn, followed by Mexico at 181,900 tons. The USDA report says unnamed buyers canceled shipments totaling 1.76 million metric tons. On the other hand, exports last week totaled 2.01 million metric tons, a high point for the current marketing year and 69 percent higher week-to-week. Soybean sales totaled 334,000 metric tons, higher than the prior week but 33 percent lower than the previous four-week average. Mexico was the big buyer at 139,700 metric tons, but unknown buyers canceled 351,400 tons of soybeans that same week. Exports rose 18 percent to 1.16 million metric tons last week. Wheat sales were 219,200 metric tons, a 31 percent increase from the previous week but 51 percent lower than the four-week average. ********************************************************************************************** U.S. Suspends Some Tariffs on U.K. Goods While it won’t have a large effect on farmers immediately, the Biden Administration is suspending some tariffs on goods from the United Kingdom. No longer a member of the European Union, the United Kingdom said in December that it will suspend tariffs on the U.S. tied to the World Trade Organization ruling against Boeing Airline subsidies. It was a move that trade experts say was a goodwill gesture and a sign that the British government is hoping to resume negotiations on a free trade agreement now that the Biden Administration has taken power. “The United States will now suspend retaliatory tariffs in the Airbus dispute for the next four months,” the Office of the U.S. Trade Representative says in a statement. “This will allow time to focus on negotiating a balanced settlement to the disputes and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies like China.” Aviation Week Dot Com says the U.S. move shows the Biden Administration followed through on campaign promises to build a coalition of allies that will confront China on trade together. China still maintains billions of dollars’ worth of duties on imports of U.S. agricultural commodities. ********************************************************************************************** Americans Support Tough Stance on China President Biden inherited a challenging relationship between the U.S. and China, including a trade war, tariffs on both sides, human rights issues, and more. A Pew Research Survey shows that 89 percent, almost nine-in-ten adults, consider China a competitor or enemy rather than a partner. Many Americans also support taking a firmer approach to the bilateral relationship, whether by promoting human rights in China, getting tougher on China economically, or even limiting the opportunities of Chinese students to study abroad in the U.S. Many in the survey also said China’s powerful economy, its dominance as a manufacturing center – sometimes at the expense of the environment or workers – and issues related to the U.S. and Chinese economic relationship are concerns. Overall, Americans see the current economic ties with China as tenuous: around two-thirds (64%) describe economic relations between the superpowers as somewhat or very bad. Just over half of the survey respondents said they have confidence in Biden to deal effectively with China. Partisan politics are far apart on the issue: 83 percent of Democrats say they have confidence in Biden to deal effectively with China, compared to only 19 percent of Republicans who say the same thing. ********************************************************************************************** U.S. Grains Council Trying to Regain Market Share in Egypt The U.S. Grains Council is working to regain market share in Egypt. The new two-prong strategy focuses on U.S. corn performance in the starch sector and improving local storage conditions. Egypt is the largest importer of corn in North Africa, bringing in 10 million tons (303 million bushels) annually. However, U.S. corn exports to Egypt have suffered in recent years from strong competition from the Black Sea and South American imports. In the 2018-2019 marketing year, Egypt was the ninth-largest U.S. corn market and the leading importer of U.S. corn co-products in the Middle East region. The USGC is focused on improving the image of U.S. corn after it arrives in Egypt through two programs. The first focuses on highlighting the superior performance of U.S. corn in the industrial starch sector, and another focusing on improving existing storage constraints. The Council recently signed a memorandum of understanding with the largest corn importer in Egypt to improve storage conditions for grain destined for the Egyptian feed and wet-milling industries, with an additional objective of stemming negative effects on downstream industries. USGC is also focusing not only on building a short-term market but also long-term Egyptian trust in food security through trade. ************************************************************************************ Chicago Company Launches Dairy-Based Sports Drink A Chicago-based start-up company launched GoodSport, a sports drink that’s 97 percent dairy and aims to compete nationally against leading brands. The first-of-its-kind natural sports drink is made with the goodness of milk and backed by science. GoodSport will soon be available on Amazon and at www.goodsport.com, but broader retail distribution is planned for later this year. The product was launched with support from the dairy checkoff and other industry groups, including the checkoff-funded Center for Dairy Research at the University of Wisconsin-Madison. The university showed GoodSport how ultrafiltration could harness milk’s electrolytes, vitamins, and carbohydrates and remove its protein to create a clear, light beverage with a mouthfeel that consumers expect from a sports drink. GoodSport also learned how to source its main ingredient sustainably. Dairy companies often ultrafilter milk and use the protein to make products like cheese but can’t use the nutrient-rich part of the milk, called permeate. That means GoodSport rescues a byproduct from dairy companies to produce its beverage. “GoodSport carries dairy’s healthy halo,” says Pennsylvania dairy farmer Marilyn Hershey, who serves as chair of Dairy Management Incorporated. “It not only offers delicious refreshment and nutrition from dairy, but it supports our industry’s sustainability mission. It’s a new way to talk about milk, and it’s exciting for dairy farmers.”
| Rural Advocate News | Monday March 8, 2021 |
Washington Insider: Carbon Banks for Farmers Bloomberg is reporting this week that USDA is exploring making a carbon bank for farmers — and is beginning an intense examination of how to structure a carbon market that would encourage broad participation. Questions raised include whether to guarantee a minimum price for credits given for reducing emissions, Secretary Tom Vilsack said Friday. “We will be exploring in depth how we could structure appropriately a carbon bank that would be designed for and benefit farmers,” Vilsack said. “Would it require a price guarantee on carbon? Would it require a program that invests and provides resources for the capital costs associated with capture of carbon?” Vilsack also warned that despite the big Chinese purchases that recently have buoyed agricultural markets, the Asian nation remains a “fickle trade partner” that could shift directions if geopolitical tensions escalate. He also committed to a “deep dive” to examine competition in livestock markets now dominated by a few giant meat and poultry processors. He laughed off a question about whether he will remain in his post for President Joe Biden's full first term, responding “What are you going to do four years from now?” Vilsack previously served as agriculture secretary the entire eight years of Barack Obama's presidency. Vilsack, 70, was confirmed last week by the Senate and takes the top spot at USDA after some volatile years for farmers amid the Trump administration's trade war with China. While a deal with the Asian country was eventually reached, the USDA still continued its large aid program for growers amid the pandemic's economic blow. A focus on climate change, which Vilsack said is “the priority” in the coming 12 months, would be a big shift from his predecessor. “Farmers will understand and appreciate we are quite serious about it,” he said. The USDA chief said no decisions have yet been made on what specific actions the administration will take to reduce greenhouse emissions but that his department is examining “an array” of approaches including changes to existing conservation programs, a carbon bank and altering crop insurance premiums. Different premiums for farmers based on whether they adopt climate-friendly practices “is in the mix to take a look at,” he said. He noted that private carbon banks have already been set up in some cases, but “clearly aren't yet attracting enough interest among farmers.” Vilsack said he plans to devote “significant” resources to climate initiatives, though he said he doesn't “have a number in mind” for funding. He said climate initiatives will be more than a “pilot program or proof of concept,” though they will initially be “small scale” as the department builds experience and a record that will generate support in Congress. Vilsack said his team believes the administration has authority to immediately fund climate initiatives by tapping the borrowing authority of the Commodity Credit Corp., the Depression era entity recently used to finance his $28 billion trade bailout. But he said his team is still figuring out whether the entity's congressionally authorized credit ceiling will allow “meaningful” climate funding without disrupting farm subsidy programs also financed through CCC. The wave of Chinese grain purchases in recent months that have helped buoy U.S. farmers' financial outlook remain vulnerable to the vicissitudes of relations between Washington and Beijing, so it is crucial that farmers diversify trade partners, he said. China has “great demand and great need” for U.S. farm purchases, he said. But, “anything at any point in time can disrupt the balance that exists,” and “all bets are off” if conflict arises. Though China fell short of its purchase commitments during the first year of the phase one trade deal, Vilsack said he is “not aware of any” effort by Beijing to renegotiate commitments under the agreement. He added that it isn't “going to be particularly helpful” to make use of any sanctions in the trade agreement for shortfalls in purchases during the first year, particularly since the deal allows adjustments based on market conditions. “If you want to continue the trade, and you poke them in the eye on that issue, it doesn't make sense to me,” he said. Vilsack this week appointed Andy Green as a senior adviser on competition. Green was previously a fellow at the liberal think tank Center for American Progress, which has issued reports critical of concentration in agribusiness. The agriculture secretary said the department will in particular focus on meat and poultry processors following disruptions in the industry during the pandemic and other events. “There needs to be a focus on the processing capacity in the country and whether or not it's incredibly concentrated and does that not only create issues with competition but, as important, does it also create resiliency questions with the supply chain,” he said. So, we will see. The carbon bank issue has considerable support in rural areas, observers say, and it likely can be crafted so that it fits the administration's efforts to support green policies. These are policies that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday March 8, 2021 |
Stabenow Downplays Concern Over PAYGO Impacts on Farm Programs The warning that U.S. farm programs could face sizable cuts due to PAYGO budget rules that was raised by Senate Ag Committee Ranking Member John Boozman, R-Ark., was tamped down by panel Chair Debbie Stabenow, D-Mich. Congress will do what it has done before, Stabenow said, which is to waive the requirement to offset spending that would trigger major cuts to mandatory programs like farm programs. Boozman warned that U.S. ag programs could see sizable cuts in the wake of the stimulus plan via sequestration.
| Rural Advocate News | Monday March 8, 2021 |
US, EU Suspend Tariffs in Civil Aircraft Dispute The U.S. and European Union (EU) announced a suspension of retaliatory duties aimed at reaching a negotiated solution in the dual civil aircraft disputes, this following the same announcement from the U.S. and UK March 4. “The European Union and the United States today agreed on the mutual suspension for four months of the tariffs related to the World Trade Organization (WTO) Aircraft disputes,” a joint statement from U.S. and EU trade officials read. “The suspension will cover all tariffs both on aircraft as well as on non-aircraft products and will become effective as soon as the internal procedures on both sides are completed.” Under the suspension, the U.S. and EU are seeking to “to ease the burden on their industries and workers and focus efforts towards resolving these long running disputes at the WTO,” the statement said. The move means $7.5 billion in U.S. tariffs on EU goods and $4 billion in tariffs levied by the EU on U.S. goods will be lifted for at least four months, including many ag products like spirits, cheeses, and pork. However, USDA Secretary Tom Vilsack said Friday that if the U.S. and EU are to rekindle talks towards a trade deal they must include agricultural goods.
| Rural Advocate News | Monday March 8, 2021 |
Monday Watch List Markets Traders will check the latest weather forecasts to start the week with an eye on the late soybean harvest in Brazil and dry conditions in Argentina. Export sales have quieted lately, but there is always a chance USDA will have an announcement at 8 a.m. CST. There is a report on U.S. wholesale inventories at 9 a.m., followed by USDA's weekly grain export inspections at 10 a.m. Weather Dry conditions will cover all primary crop areas Monday. Temperatures will be above to much above normal, favoring transportation and livestock but unfavorable for winter wheat in dry areas of the Southern Plains. Rain and snow are in store for the Northwest Tuesday, crossing into the Northern Plains Wednesday.
| Rural Advocate News | Friday March 5, 2021 |
FAO Food Price Index Rising for Nine Straight Months The Monthly Food Price Index averaged 116.0 points in February 2021, 2.4 percent higher than January, marking the ninth month of consecutive rise. The index by the United Nations Food and Agriculture Organization reached its highest level since July 2014. The increase was led by strong gains in the sugar and vegetable oil sub-indices, while cereals, dairy and meat also rose but to a lesser extent. International sorghum prices increased the most, up 17.4 percent in February and 82.1 percent above year-ago levels, driven by ongoing strong demand from China. International corn prices also rose .9 percent from the previous month. Wheat export prices remained nearly stable in February, but up 19.8 percent from last year. Vegetable oil prices continued strength reflected by firmer prices. Dairy prices were up 1.7 percent, and meat prices up .6 percent. The report found sugar prices up 6.4 percent from January, the second consecutive monthly increase and its highest level since April 2017. ************************************************************************************ Farm Futures: Why Farmers Feel Threatened by Biden Administration A recent Farm Futures survey found why farmers feel threatened by potential policy objectives under the Biden administration. The survey shows nearly nine of every ten farmers believe taxes will go up under a Biden administration. Another 71 percent believe WOTUS will be overturned. Only 22 percent believe markets will stabilize with a new trade strategy. And four of every five farmers believe there will be fewer government ad hoc funds going to agriculture. An Iowa farmer told Farm Futures, "I am worried about everything in that survey." The publication points out the unease in farm country today feels similar to farmer attitudes after President Barack Obama was elected. And while farm organizations and lobbyists engage with new political leaders on Capitol Hill, it may be some comfort to remember that, "when it comes to ag policy, usually the worst doesn't happen, but you need to be prepared for changes," according to a Farm Futures analyst. ************************************************************************************ Farm Groups Seek Passive of COVID-19 Bill with Relief for Minority Farmers A coalition of agriculture groups urges lawmakers to support emergency relief for farmers and ranchers of color. In a letter to leadership of the House and Senate, the coalition says they are "committed to improving the financial and rural development interests of this nation's Black, Indigenous, Hispanic and People of Color farmers and ranchers." Specifically, the coalition urges lawmakers to support the Emergency Relief for Farmers of Color Act. Georgia Senator Raphael Warnock, a Democrat, introduced the legislation last month. The legislation would provide $4 billion in direct relief payments to help farmers of color pay off outstanding USDA farm loan debts and related taxes, and help them respond to the economic impacts of the pandemic. The bill provides Another $1 billion fund to root out systemic racism by expanding the capacity of USDA to provide technical and legal assistance to agricultural communities of color and to fund under-resourced programs that will shape the future for farmers and communities of color. ************************************************************************************ Ethanol Production Rebounds from Recent Collapse Ethanol production rebounded last week, according to data from the Energy Information Administration and the Renewable Fuels Association. For the week ending February 26, ethanol production scaled up 29.0 percent following the prior week lull, or 191,000 barrels per day, to 849,000, equivalent to 35.6 million gallons daily. Production remained 21.3 percent below the same week last year. The four-week average ethanol production rate decreased 2.6 percent, equivalent to an annualized rate of 12.85 billion gallons. Meanwhile, Ethanol stocks declined 1.6 percent, which was 10.2 percent below a year ago. Inventories drew down across all regions except the Midwest. The volume of gasoline supplied to the U.S. market, a measure of implied demand, recovered by 13.1 percent to 124.9 billion gallons. Gasoline demand was 11.3 percent less than a year ago. Refiner and blender net inputs of ethanol improved by 12.3 percent to a nine-week, and there were zero imports of ethanol reported for the week. ************************************************************************************ Farm Workforce Modernization Act ‘Step in the Right Direction’ Legislation introduced in the House of Representatives, the Farm Workforce Modernization Act, would reform the H-2A visa program to address the agricultural labor shortage. Representatives Zoe Lofgren, a California Democrat, and Dan Newhouse, a Washington state Republican, introduced the legislation this week. Among other provisions, it would amend the H-2A program to allow a capped number of visas for farmworkers to work year-round. National Pork Producers Council's recently elected President Jen Sorenson says the organization "believes this legislation is a step in the right direction." The U.S. pork industry is largely dependent on foreign-born workers. NPPC says visa reform is needed to ensure that U.S. livestock agriculture can compete globally and continue to provide safe and affordable pork to Americans and consumers worldwide. The National Milk Producers Federation also welcomed the legislation. NMPF President and CEO Jim Mulhern stated, “This bipartisan bill takes a significant step toward ultimately addressing through legislation the workforce crisis plaguing American agriculture.” ************************************************************************************ Wicker, Peters Reintroduce FLOODS Act A group of Senators this week reintroduced the Flood Level Observation, Operations, and Decision Support, or FLOODS Act. The legislation seeks to establish a National Integrated Flood Information System. The lawmakers say the bill would improve the National Oceanic and Atmospheric Administration’s forecasting and communication of flood, tornado and hurricane events. Senator Roger Wicker, a Mississippi Republican, along with Michigan Democrat Gary Peters, reintroduced the bill. Wicker says recent flooding events in his state "underscore the importance of an effective understanding and response to high water." The bill would establish partnerships with institutions of higher education and federal agencies to improve total water predictions, designate a service coordination hydrologist at each National Weather Service River Forecast Center and evaluate and improve flood watches and warnings. Additionally, the legislation encourages NOAA to evaluate acoustic tracking and measuring of windstorms, use aerial surveys of floodwaters to improve flood mapping, and improve modeling of freshwater outflow into the ocean.
| Rural Advocate News | Friday March 5, 2021 |
Washington Insider: China's National Digital Currency The New York Times is reporting this week that China is testing a new digital currency. It described the experience of Annabelle Huang who recently won a government lottery to try China's latest economics experiment. After joining the lottery through the social media app WeChat, Huang, 28, a business strategist in Shenzhen, received a digital envelope with 200 electronic Chinese yuan, or eCNY, worth around $30. To spend it, she went to a convenience store near her office and picked out some nuts and yogurt. Then she pulled up a QR code for the digital currency from inside her bank app, which the store scanned for payment. “The journey of how you pay, it's very similar” to that of other Chinese payments apps, Huang said of the eCNY experience, though she added that it wasn't quite as smooth. China is running a “bold effort” to remake the way that government-backed money works, rolling out its own digital currency with different qualities than cash or digital deposits, the Times says. The country's central bank, which began testing eCNY last year in four cities, recently expanded those trials to bigger cities such as Beijing and Shanghai. The effort is one of several by central banks around the world to try new forms of digital money that can move faster. Many countries have taken action as cryptocurrencies such as Bitcoin have become more popular. But while Bitcoin was designed to be decentralized so that no company or government could control it, digital currencies created by central banks give governments more of a financial grip. These currencies can enable some funds to expire if not used by a particular date and can make it easier for governments to track financial transactions, fight tax evasion and crack down on dissidents. Over the last 12 months, more than 60 countries have experimented with national digital currencies, up from just over 40 a year earlier, according to the Bank for International Settlements. The countries include Sweden, which is conducting real-world trials of a digital krona, and the Bahamas, which has made a digital currency, the Sand Dollar, available to all citizens. By contrast, the United States has moved slowly and done just basic research. At a New York Times event last week, Treasury Secretary Janet Yellen indicated that might change. She asserted that an American digital currency was “absolutely worth looking at” because it “could result in faster, safer and cheaper transactions.” Still, no major power is as far along as China. Its early moves could signal where the rest of the world goes with digital currencies, NYT says. “This is about more than just money,” said Yaya Fanusie, a fellow at the Center on Economic and Financial Power, a think tank, and an author of a recent paper on the Chinese currency. “It's about developing new tools to collect data and leverage that data so that the Chinese economy is more intelligent and based on real-time information.” While the Chinese government has not said if and when it will officially introduce the eCNY nationwide, several officials have mentioned having it ready for tourists visiting for the 2022 Olympics in Beijing. Recent articles and speeches from officials at the People's Bank of China underscored the project's ambitions and the desire to be first. The development of a national digital currency began in 2014, when the People's Bank of China set up an internal group to work on one. People recently have been invited to currency trials through a lottery on WeChat or other apps and were able to click on a link and get a balance of 200 electronic yuan. To spend the money, users can use an eCNY app to scan a retailer's QR code or produce a QR code that the retailer can scan. The design of eCNY borrows only a few minor technical elements from Bitcoin and does not use the so-called blockchain technology, officials from the People's Bank of China have said. So far, only a limited number of retailers have taken the currency. But early users said the experience was so similar to Chinese digital payment options like Alipay and WeChat Pay that it would not be hard to switch to it if it were rolled out nationwide. Eswar Prasad, the former head of the International Monetary Fund's China division, said one of the most important factors driving the eCNY was the success of WeChat Pay and Alipay. Both have given rise to a new alternate financial system that has worried Chinese officials and led to a recent crackdown on Jack Ma, the founder of Alibaba and Ant Financial, which owns Alipay. If the eCNY is successful, it will give the central bank new powers, including novel types of monetary policy to help the economy grow. Some economists say China's digital currency would also make it easier for the renminbi to compete with the U.S. dollar as a global currency. But Chinese officials and analysts have said many other changes would be necessary for that to happen. So, we will see. So far, the prototype currencies often appear to be highly intrusive and the idea of basic new shifts in the nature of national currencies is deeply daunting. Such proposals should be watched closely by producers as they are debated and, perhaps, implemented, Washington Insider believes.
| Rural Advocate News | Friday March 5, 2021 |
Vilsack Reiterates Changes May Be Made To Food Box Program USDA Secretary Tom Vilsack Wednesday told a National Press Foundation meeting that he does support the Food Box program deployed by the Trump administration and said that it would run through April, but again said there could be changes to the effort ahead and that no decision to continue it had been made. A review of the program is underway at USDA, Vilsack said, including that if the program or “something akin to a food box program” were continued, would it be on a smaller, more-targeted scale. “No decision has been made as to whether or not it will be extended and if extended what it will look like,” he said. He did suggest that one option could be to involve The Emergency Food Assistance Program (TEFAP) as that program has an established distribution system in getting food out to nonprofits and charities. It still appears that the popular program will continue in some form given the overall concept has won backing of some key lawmakers. However, expectations have been that the effort will be tweaked from its initial version and it could be renamed or as Vilsack suggests, combined with another existing effort such as TEFAP.
| Rural Advocate News | Friday March 5, 2021 |
Group Seeks Supreme Court Review of California's Prop 12 The North American Meat Institute has filed a petition asking the Supreme Court to review an earlier ruling of the U.S. Court of Appeals for the Ninth Circuit regarding the constitutionality of California's Proposition 12 — The Farm Animal Confinement Initiative. “Prop 12 hurts the family on a budget by causing higher prices for pork, veal and eggs, and unfairly punishes livestock producers outside of California by forcing them to spend millions just to access California markets,” Meat Institute President and CEO Julie Anna Potts said in a release. “If this unconstitutional law is allowed to stand, California will dictate farming practices across the nation.” The Meat Institute argued the Ninth Circuit's decision conflicts with those of other federal appeals courts regarding whether the constitution limits a state's ability to extend police power beyond its territorial border via a trade barrier dictating production standards. It also said Prop 12 insulates in-state farmers from out of state competition, while “imposing crushing burdens” on out of state producers with no political voice to shape the rules.
| Rural Advocate News | Friday March 5, 2021 |
Friday Watch List Markets Friday morning's reports start at 7:30 a.m. CST with U.S. nonfarm payrolls and February unemployment from the U.S. Labor Department and the January trade deficit from the U.S. Census Bureau. Later Friday morning, USDA will release more specific export data for January. The latest weather forecasts will also be noted, along with any export sales news that might appear. Weather Light to moderate rain showers are in store for much of the Southern Plains Friday. Moisture will be important for winter wheat ahead of exiting dormancy. Other crop areas will be dry. Temperatures will be much above normal in northern areas and seasonal to above normal elsewhere.
| Rural Advocate News | Thursday March 4, 2021 |
Ag Bankers Signal Strong Recovery in Farm Finance Farm income and agricultural credit conditions improved significantly according to agricultural lenders across major portions of the U.S. in the fourth quarter. Despite turbulent conditions related to the ongoing pandemic, prices of several agricultural commodities increased sharply in the final months of the year. Dramatic improvements in crop prices drove the sharpest turnaround in agricultural lending conditions in more than a decade, according to the Kansas City Federal Reserve Bank. On average, farm loan repayments increased for the first time since 2013. The rate of loan repayment increased from a year ago in all participating Federal Reserve Districts except Dallas, with the fastest pace of increase reported in the Minneapolis and Chicago Districts. Other financial indicators also shifted quickly in the fourth quarter as borrowers experienced relief from previous years of financial stresses. On average, loan demand contracted at the fastest pace since 2013 and fund availability increased at the fastest pace since 2013, according to agricultural bankers. ************************************************************************************ Farm Groups Welcome Cattle Market Transparency Act Farm and livestock groups this week welcomed introduced of the Cattle Market Transparency Act. Senators Deb Fischer, a Nebraska Republican and Ron Wyden, an Oregon Democrat, introduced the legislation. The bill establishes regional mandatory minimum thresholds of negotiated cash and negotiated grid trades to enable price discovery in cattle marketing regions. The legislation would also require USDA to create and maintain a publicly available library of marketing contracts between packers and producers in a manner that ensures confidentiality. Finally, the bill mandates that packers report to USDA the number of cattle scheduled to be delivered for slaughter each day for the next 14 days and require USDA to report this information daily. The National Cattlemen’s Beef Association, U.S. Cattlemen’s Association and American Farm Bureau all responded favorably to the bill. NCBA welcomed a discussion on market transparency, stating, “We have worked and will continue to work alongside our affiliates, Congress, and USDA toward regionally robust negotiated trade.” ************************************************************************************ Vilsack: Hungry Americans Need the American Rescue Plan Now An editorial by Agriculture Secretary Tom Vilsack supports passage of the American Rescue Plan. The legislation, passed by the House and up for consideration in the Senate, is President Joe Biden's $1.9 trillion economic relief package to help the nation recover from the coronavirus pandemic. Specifically, Vilsack says the plan is "one of the strongest pieces of legislation in recent memory dedicated to addressing hunger and food insecurity." Vilsack says hunger has increased throughout the pandemic, with as many as 30 million adults and 14 million children living in a household where they may not always get enough to eat. Further, the pandemic has exacerbated longstanding disparities in food insecurity. The American Rescue Plan provides funding to USDA to expand federal nutrition assistance programs like the Supplemental Nutrition Assistance Program, or SNAP, and a complimentary program that helps mothers and children under five and other emergency benefits to children, seniors, and the disabled. ************************************************************************************ Senate Ag Plans Climate Hearing The Senate Agriculture Committee will hold a hearing on Climate Change next week. Committee leadership announced the hearing, titled, Farmers and Foresters: Opportunities to Lead in Tackling Climate Change. The hearing, planned for Thursday, March 11, follows a similar hearing held by the House Agriculture Committee. Last week’s House Agriculture Committee hearing on climate change focused on how farmers and ranchers can help lessen the burden. The hearing included comments from American Farm Bureau Federation President Zippy Duvall, who pointed out carbon sequestration, achieved through land management, contributes to greenhouse gas removals equivalent to 12 percent of total U.S. emissions. Duval says, “with increased investment in agricultural research, we can develop the new frontier technologies to capture even more carbon in our croplands, our forests and our grasslands.” Addressing climate change is a priority of the Biden administration. The House and Senate Agriculture Committees are expected to discover ways farmers and ranchers can be part of the solution. ************************************************************************************ NPPC Elects New Officers, Board Members The National Pork Producers Council Wednesday elected new officers and members to its board of directors at the National Pork Industry Forum. Jen Sorenson was introduced as the 2021-2022 NPPC president. For the past decade, Sorenson has been with Iowa Select Farms, an Iowa farming business that markets more than five million hogs per year. Sorenson takes over from Howard “AV” Roth, a hog farmer from Wisconsin, who becomes NPPC's immediate past president and chairman of the council's trade and nominating committees. Terry Wolters of Minnesota was elevated to president-elect. Scott Hays of Missouri was elected to serve as NPPC vice president, and Rob Brenneman of Iowa and Jeb Stevens of Indiana were elected as new members of the board. Additionally, delegates passed two resolutions, including one supporting CME Group's Pork Cutout contract, which was introduced in November 2020. Delegates also passed a resolution to delay an increase to the contribution rate of NPPC’s strategic investment program until July 2022. ************************************************************************************ Bayer Offering Free XtendiMax Application Training Bayer Crop Science has free training available to farmers and applicators using the XtendiMax herbicide with VaporGrip Technology and the new XtendFlex soybeans. A company spokesperson says, "we will continue to support our customers to help with proper stewardship so they can achieve great weed control and strong harvests." Bayer offers a variety of free training options - including live webinars every Wednesday at 9 a.m. Central through the end of March 2021, self-guided online modules, and limited in-person workshops for customers unable to connect online. Bayer will continue offering training up until the application cutoff dates this summer. Applicators can sign up for training at RoundupReadyXtend.com/Training. XtendiMax herbicide remains a restricted use pesticide, and all certified applicators must undergo annual training to use the technology. The Bayer-led trainings explain the new label requirements in a clear and easy-to-understand way. Bayer has also updated the XtendiMaxApplicationRequirements.com webpage, which details the application requirements.
| Rural Advocate News | Thursday March 4, 2021 |
Washington Insider: The Pandemic and Long Term Jobs Growth Projecting how many people will work in hundreds of detailed occupations in 2029 is a bold exercise — even without the uncertainty of the pandemic. However, the New York Times this week said that U.S. Department of Labor experts attempt to do just that. And their latest assessment of which jobs will grow over the next decade has alarming implications for jobs requiring less education — while also forecasting a boom for epidemiologists and other health-science jobs, the Times said. That assessment, from the Bureau of Labor Statistics, emphasizes all the uncertainty that accompanies projections and it stresses that these are estimates of structural changes, not forecasts of cyclical booms and busts. Long-term projections are often wrong, especially for more volatile sectors like mining and construction, but the agency's estimates are typically well reasoned and sober. The original BLS projections, made last year without taking pandemic effects into account, called for cumulative economy-wide job growth of 3.7% from 2019 to 2029. The new pandemic-informed projections cut that to 2.9% in the “moderate impact” pandemic outlook and 1.9% in the “strong impact” one. Both of these new outlooks assume more remote work and higher demand for relevant technology services; less in-person entertainment and travel; and more investment in public health than would have happened without the pandemic. In the “strong impact” projection, there would be 25% more epidemiologists in 2029 than the original baseline projection for 2029, the largest increase among nearly 800 detailed occupations. The 10 occupations with the biggest increase in projected employment relative to the baseline projection are all in medical, health-science and technology fields. The 10 occupations with the largest declines relative to the baseline projection include restaurant, hotel and transportation jobs. On balance, the new projections modestly speed up the occupational shifts from the original baseline projections. For instance, the pandemic is poised to accelerate the originally projected fast growth in software developer jobs and to hasten a previously expected decline in cashier jobs. The projected employment changes because of the pandemic are concentrated in a relatively small number of sectors. Three-quarters of all jobs are in occupations where projected employment in the strong-impact scenario differs from the original baseline scenario by less than 2%. For the most part, the sectors originally projected to grow fastest over the next decade in the baseline projection—like nurse practitioners, home health aides and many other health care occupations—are still projected to grow fastest. Similarly, the sectors originally projected to shrink most—such as administrative assistants, mail carriers and product inspectors—are still projected to decline similarly in the pandemic-affected scenarios. Across all occupations, the correlation between employment growth in the original projection and the strong-impact pandemic projection is 0.92—with a correlation of 1 representing a perfect relationship. The sectors facing additional job loss because of the pandemic tend to be low-wage sectors where workers are already struggling. The strong-impact pandemic projection shows the lowest-paying occupations losing jobs over the decade. This would be a significant shift from the original pre-pandemic projections, in which growth was greatest in the highest- and lowest-wage occupations, with middle-wage occupations lagging. The pandemic could end up replacing polarized growth with a net loss of lower-wage jobs. Grouping occupations by educational requirements instead of wages tells a similar story. For jobs requiring a bachelor's or graduate degree, projected upbeat employment growth remains nearly the same under the pandemic-affected picture as in the original baseline. The decline in projected employment growth because of the pandemic is almost entirely concentrated in jobs requiring only a high school diploma or no diploma. Still, the pandemic makes forecasting a risky business, the Times notes. Near-term projections of GDP or unemployment hinge on things like the rate of virus mutations and vaccine distribution. Longer-term predictions depend on how much the pandemic permanently changes how we work and spend. But the pandemic has already widened existing inequalities; these new projections suggest that the unequal effect on jobs could long outlast the pandemic. So, we will see. As the Times noted, long term forecasting is always tricky business. And while the specific trends and rates are almost always wrong, the process is considered highly useful for its descriptions of the factors affecting the changes. In addition, the article notes to a strong degree the factors that give competitors for good jobs a leg up likely will continue to be important to agriculture and other sectors and should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday March 4, 2021 |
Vilsack Signals He Backs Food Box Program, But With Adjustments USDA Secretary Tom Vilsack has come out in favor of the Farmers to Families Food Box program, albeit with some tweaks. “I think that I have been convinced that there are a number of areas — remote areas in particular — that have been served by this program where people have received fresh fruits, vegetables and other products that they might not otherwise have gotten but for the program,” Vilsack told Politico in an interview this week. “I like that aspect of what's happened with this program. I am a little concerned about the fact that there seems to be quite a significant difference between the level of reimbursement for people who are administering the program and implementing the program. That is a concern. At the end of the day, you want as many dollars going into the boxes, as opposed to into the pockets of the people filling the boxes. I think there needs to be an examination of that.” In remarks Wednesday, Vilsack would not comment on whether the program would run beyond April. However, the effort has won the backing of key lawmakers like Sen. Pat Leahy, D-Vt., further raising expectations the effort will be a part of the food/nutrition programs ahead.
| Rural Advocate News | Thursday March 4, 2021 |
Vilsack Meets With Mexican, Canada Ag Leaders USDA Secretary Tom Vilsack held virtual discussions Tuesday with Mexican Secretary of Agriculture Victor Villalobos and with Canadian Minister of Agriculture Marie-Claude Bibeau. Vilsack said on Twitter that Mexico is “not only a key trading partner, but also an important collaborator as we address climate change and food security.” The two committed to boosting scientific and technological cooperation at all levels on agriculture. Villalobos said that the objective “is to achieve better production and guarantee food security.” Vilsack said that the relationship between the U.S. and Mexico was “strengthened with the Treaty between Mexico, the United States and Canada (T-MEC), which gained relevance in the context of the pandemic.” Vilsack also said that the two sides will “work to increase the productivity, with sustainable practices of all farmers, and in reaching being self-sufficient in the North America region.” Relative to his discussion with his Canadian counterpart, Vilsack said he expected to work with her on “climate smart food and forest practices and delivering science-based solutions to help mitigate and reduce climate change.” From the Canadian side, Bibeau said they agreed on a mutual interest in championing rules- and science-based international trade, with both sides agreeing that working on those issues is key for agriculture, according to the Canada Newswire. “Secretary Vilsack and I share many priorities and we committed to supporting each other's efforts to build a sustainable agricultural sector that strengthens our rural economies, and feeds our people at home and abroad,” Bibeau said in a statement. There was little mention on either side relative to trade issues between the parties such as dairy and Canada and products like potatoes with Mexico. However, Villalobos will be visiting Washington to discuss issues like biotechnology, fertilizer management, and trade issues such as U.S. access to the Mexico market for fresh potatoes and Mexican access to the U.S. market for avocados from Jalisco, according to a report from marketresearchtelecast.com.
| Rural Advocate News | Thursday March 4, 2021 |
Thursday Watch List Markets USDA's weekly export sales, U.S. jobless claims, a report on U.S. productivity in the fourth quarter and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CST. The U.S. Energy Department's report on natural gas inventory is at 9:30 a.m. Otherwise, traders will be looking at the latest weather forecasts and any fresh export news that might emerge. Weather Another dry day is in store across the primary crop areas Thursday. Temperatures will be mainly above normal. A weather system bringing snow to the southern Rockies is indicated to be a rain maker in the southwestern Plains Thursday night and Friday. This moisture would be important for winter wheat.
| Rural Advocate News | Wednesday March 3, 2021 |
February Ag Economy Barometer Results February's Ag Economy Barometer reading of 165 changed little compared to January when the index stood at 167. Announced Tuesday, producers continue to report strong current conditions on their farms as February's Current Conditions Index value of 200 is near its all-time high. Continuing a trend that got underway last fall, however, the Index of Future Expectations drifted lower to 148, three points below its January reading. February marked the third time in the last four months that the Future Expectations Index declined, leaving it 20 percent below its October peak. Ongoing strength in ag commodity prices and farm income continue to support producers' perspective on current conditions. Concerns about possible policy changes affecting agriculture and eroding confidence in future growth in ag trade continue to weigh on producers' future expectations. Producers also indicated they expect to see alternative protein sources increase market share in the years ahead. If the market share becomes significant, they think it’s likely to reduce aggregate farm income. ************************************************************************************ Stabenow Introduces New Bill to Boost Clean Energy Senator Debbie Stabenow this week introduced a new bill to boost manufacturing by providing a tax credit to manufacturers who retool or build facilities to produced clean energy parts. The Michigan Democrat, who also chairs the Senate Agriculture Committee, introduced the American Jobs in Energy Manufacturing Act. The legislation would provide a 30 percent tax credit to manufactures to create jobs that draw on existing skilled workforces and reinvest in communities experiencing high unemployment. Stabenow says, "Transitioning to a clean energy economy creates significant opportunities." The bill is part of Stabenow's American Jobs Agenda. The legislation would, according to Stabenow, Strengthen American manufacturing by providing $8 billion for a tax credit to manufacturers that retool, expand or build new facilities that make parts and technologies needed to reduce carbon emissions. Companies eligible to apply for the tax incentive include those making batteries, electric and fuel cell vehicles, semiconductor chips, components to produce renewable energy, carbon capture and others. ************************************************************************************ Hypoxia Task Force Sends Letter to EPA, USDA Leadership States in the Hypoxia Task Force urge Biden administration leaders to continue partnership and support with the coalition. The task force recently penned a letter to leadership at the Environmental Protection Agency and Department of Agriculture. Iowa Secretary of Agriculture Mike Naig, who serves as the co-chair of the task force, states, "Working together, we can improve our local waters and the Gulf of Mexico." The task force is a partnership of 12 states and five federal agencies that work collaboratively to reduce nutrient-loading throughout the Mississippi River Basin and the size of the hypoxic zone in the northern Gulf of Mexico. The group’s action plan has a near-term target of reducing nutrient-loading to the Gulf from the basin by 20 percent by 2025, and a long-term goal of limiting the Gulf hypoxic zone to an average annual size of less than 5,000-square kilometers by 2035, subject to the availability of resources. ************************************************************************************ Optimism in Beef Industry Fueled by Strong Demand Despite pandemic disruptions, consumer demand for beef at home and around the globe remained strong in 2020. CattleFax says that trend will continue in 2021 and beyond, especially as foodservice operations begin to fully reopen. The data was presented during the recent Cattle Industry Convention Winter Reboot. The strong demand, combined with expected higher cattle prices, signal an optimistic future for the beef industry. According to CattleFax CEO Randy Blach, cattle numbers will continue to contract in 2021, and producers will gain leverage on packers and retailers, and margin distribution will be more equitable. Packing capacity is expected to increase slowly with the addition of more small-scale plants, and U.S. meat exports will continue to grow. Overall, profitability is expected to improve significantly for cow/calf producers. In 2020, total meat sales volume at retail was up ten percent and total dollar sales at retail up 18 percent, with beef's share of the increase in spending accounting for 45 percent or $5.7 billion. ************************************************************************************ USCA Supports Strengthening Local Processing Act The United States Cattlemen’s Association this week announced its support of The Strengthening Local Processing Act. Introduced last month, the legislation will increase local livestock and poultry producers' options and assist smaller facilities as they adapt to the COVID-19 pandemic and expand to meet consumer demand. The legislation was introduced by Representative Chellie Pingree, a Maine Democrat, and Jeff Fortenberry, a Nebraska Republican, in the U.S. House. USCA Vice President Justin Tupper of South Dakota says, “Local and regional meat processors are critical in securing our nation’s food supply, and by offering this technical and financial assistance, we can better help set them up for success.” USCA says four multinational meatpacking companies control over 80 percent of the meatpacking business in the U.S., adding, "expanding the reach of independent processors brings more competition to the marketplace." The legislation will increase the federal share of state inspection costs from 50 to 65 percent and for Cooperative Interstate Shipment facilities from 60 to 80 percent, encouraging more states to operate state inspection programs. ************************************************************************************ Krysta Harden Promoted to President/CEO of U.S. Dairy Export Council Dairy Management Inc. and the U.S. Dairy Export Council announced the promotion of Krysta Harden from chief operating officer to President and CEO. Harden was named COO in May 2020. During that time, she continued her role as executive vice-president of global environmental strategy for DMI, which manages the national dairy checkoff for 34,000 dairy farmers. Harden succeeds former USDEC President and CEO Tom Vilsack, who has been confirmed as secretary of agriculture in the Biden administration. Harden becomes the third president and CEO to lead USDEC since its founding by DMI in 1995 and is its first female chief executive. Before joining DMI, Harden served as Chief Sustainability Officer with Corteva and DuPont. Harden also spent seven years working with Vilsack at USDA. Harden states she will continue the aggressive approach established by Vilsack at the organization “engaging USDEC member companies, exporters, and dairy producers in export market development efforts.”
| Rural Advocate News | Wednesday March 3, 2021 |
Washington Insider: Expected Break With Past Trade Policy Katherine Tai, President Biden's pick for United States Trade Representative, promised lawmakers during her confirmation hearing last week that she would work with Congress to help reinvigorate the economy and aggressively enforce American trade rules against China, Mexico and other trading partners. Tai, in testimony before the Senate Finance Committee, said her background challenging China's unfair trade practices in the Obama administration had given her knowledge of “the opportunities and limitations in our existing toolbox.” She promised to work with allies and enforce the terms of the trade deal that President Donald Trump signed with Beijing last year, while working to develop a more “strategic and coherent plan” for competing with China's state-directed economy. As trade representative, Tai would work toward several of the Biden administration's key goals, including helping to restore American alliances abroad and reforming and enforcing American trade rules to help alleviate inequality and mitigate climate change. In her testimony last week Tai promised to ensure that trading partners adhered to new trade rules, including the agreement that Trump signed with China last year and new measures included in the revised North American trade deal, the U.S.-Mexico-Canada Agreement (USMCA). She declined to give many specifics on the trade policies the Biden administration would pursue, saying instead she would review existing tariffs and trade negotiations. But she laid out a philosophy on trade that would support broader, more equitable growth and “recognize that people are workers and wage earners, not just consumers,” which she said would be a significant departure from the past. Biden and other Democrats have complained that the trade policies of previous presidents were often driven by the interests of corporations and lobbyists, and ended up surrendering the interests of lower-wage workers for the benefit of certain businesses and exporters. Trade policy for the past several decades had often fallen “into a pattern where one sector of our economy and one segment of our workers feel like their livelihoods and their opportunities are sacrificed to another part of our economy,” Tai said. She said the administration would try “to break out of that pattern, so that what we are doing in trade is coordinated with what we are doing in other areas, but also not forcing us to pit one of our segments of our workers and our economy against another.” Asked about the tariffs that Trump had placed on foreign metals, Tai said that tariffs were “a legitimate tool in the trade toolbox,” but that the global steel and aluminum industries faced larger problems with overcapacity that might require other policy solutions. She also said that she was aware of “the many concerns” that had arisen with the process of companies applying for exclusions from the tariffs, and said that reviewing that system with an eye to transparency, predictability and due process would be “very high on my radar.” If confirmed, Tai would be the first woman of color and first Asian-American to serve in the position. Tai also said that she wanted take a role in a new Biden administration effort to strengthen critical supply chains, saying that past trade policy had focused on efficiency rather than resilience, and needed to be rethought. She said that she shared the Trump administration's goal of bringing supply chains back to America, but that the prior administration's policies had created “a lot of disruption and consternation,” adding, “I'd want to accomplish similar goals in a more effective, process-driven manner.” She pledged to re-engage the United States at the World Trade Organization, which the Trump administration largely bypassed or ignored, but acknowledged that the global trade group faced big challenges to its effectiveness. The United States can't afford not to be a leader in the organization, she said, but “the WTO does need reform.” Ms. Tai also expressed interest in resolving a long-running trade dispute between the European Union and the United States at the World Trade Organization over subsidies given to the plane makers Boeing and Airbus, which has resulted in a volley of tariffs. “If confirmed, I would very much be interested in figuring out — pardon the pun — how to land this particular plane,” Tai said. Senators of both parties were mostly complimentary of Tai's experience and trade knowledge, though several Republican senators expressed concerns about her failure to commit to free trade in principle, and to pledge to aggressively drive forward new trade negotiations. Senator Mike Crapo, R., Idaho, praised Tai's extensive experience in trade, but raised concerns about Biden's pledges to address domestic priorities first before signing any new trade deals. “Our businesses and workers are ready to sell American to all foreign customers right now,” Mr. Crapo said. “Our businesses need that access more than ever because other countries are not standing still.” Tai said she planned to review the trade negotiations with Britain, saying that the country's departure from Europe, the coronavirus pandemic and other developments since negotiations started in 2018 demanded new consideration. Asked about rejoining the Trans-Pacific Partnership, a multi-country trade deal negotiated by President Obama that Trump withdrew from, Tai said that she would work with like-minded countries in the Asia-Pacific on the issue of China, but stopped short of calling for rejoining the TPP. The “basic formula for the TPP.,” of the United States engaging with countries with shared strategic and economic interests with the challenge of China in mind “is still a sound formulation,” she said. “I think what I would add is a lot has changed in the world in the past five or six years, and a lot has changed in terms of our own awareness of some of the pitfalls of the trade policies that we've pursued as we've pursued them over the most recent years,” she said. So we shall see. The new administration is entering into the trade arena with a person leading the trade agenda that may not have the global recognition, but she is experienced in the enforcement side of the equation. That is something that must be monitored ahead, Washington Insider believes.
| Rural Advocate News | Wednesday March 3, 2021 |
House Ag Chair Scott Eyes Moving Disaster Aid Out Of Appropriations Process House Ag Committee Chairman David Scott, D-Ga., spoke virtually before the National Farmers Union convention, relating discussions with President Joe Biden about getting COVID-19 vaccines to processing plants and rural areas. He also wants a rethinking of disaster relief, noting that “what we've done in Congress in the past is not getting the aid down to our farmers in time.” The solution, he said is creating legislation for establishing an “independent funding mechanism” away from the regular appropriations process, which he called “too political.” Observers note this appears to be yet another effort that lawmakers and this administration are eyeing to utilize the Commodity Credit Corporation (CCC) authority. That has been the case in the past when lawmakers have sought to move something outside the annual appropriations process. As more and more of these efforts are being considered, it also appears to be a way to build support for expanding the CCC borrowing authority from the current $30 billion level.
| Rural Advocate News | Wednesday March 3, 2021 |
USDA's Vilsack Predicts Far Less Use Of Small Refinery Exemptions Biofuel policy is already a focal point for USDA Secretary Tom Vilsack, with the USDA chief telling the National Farmers Union (NFU) Monday he has already been working with Michael Regan, nominated to be Environmental Protection Agency (EPA) administrator, to strengthen America's ethanol industry and address the issue of small refinery exemptions (SREs), a politically charged issue during the Trump administration. “We're not going to see the kind of liberal use of waivers that were granted in the previous administration,” Vilsack predicted. He added that USDA will work closely with EPA to ensure the RFS “is enforced and implemented appropriately,” adding that EPA needs to implement the Renewable Fuel Standard in a way that is “enforced and respected” throughout the administration. With EPA already stating it backs the 10th Circuit Court of Appeals decision on SREs, it is clear that potentially far fewer of those exemptions will be granted ahead. But the formal action on that front is awaiting a Supreme Court review of the 10th Circuit decision and the conclusion there is not expected until sometime this summer.
| Rural Advocate News | Wednesday March 3, 2021 |
Wednesday Watch List Markets Wednesday's reports start with ADP's estimate of U.S. private sector employment at 7:15 a.m. CST, an early clue of Friday's unemployment report. The U.S. Energy Department releases its weekly energy inventory report at 9:30 a.m., a report that includes an estimate of ethanol production after February's cold snap. Traders will keep close watch on the latest weather forecasts and any export sales news that develops. Weather Dry and mild conditions will cover all primary crop areas Wednesday. Precipitation will be confined to periods of rain on the south Atlantic coast. This combination is favorable for livestock, transportation, and field drying in areas that had recent heavy precipitation. Shower prospects are indicated for the southern Plains during late week.
| Rural Advocate News | Tuesday March 2, 2021 |
Meat Institute Seeks Supreme Court Review in Case against California’s Prop 12 The North American Meat Institute recently asked the Supreme Court to review an earlier ruling in a challenge of California's Proposition 12: The Farm Animal Confinement Initiative. The Meat Institute petition specifically asks the Supreme Court to review a U.S. Court of Appeals for the Ninth Circuit ruling in a challenge by the organization. The Meat Institute opposes the law, claiming it is unconstitutional and will hurt the nation's food value chain by significantly increasing costs for producers and consumers. Meat Institute President and CEO Julie Anna Potts states, "If this unconstitutional law is allowed to stand, California will dictate farming practices across the nation." The question presented in the case is whether the U.S. Constitution permits California to extend its police power beyond its territorial borders by banning pork and veal products sold into California unless out-of-state farmers restructure their facilities to meet animal-confinement standards dictated by California. ************************************************************************************ 2020 Agritech, Food Investments, Sets Record The agri-food-tech sector saw a record investment total in 2020. AgFunder reports total dollars committed to agri-food-tech ventures in 2020 are expected to hit $30.5 billion, representing a 34.5 percent increase over 2019 investments. The sector's stellar performance is attributable to an increasing number of big funding rounds, signifying a maturing sector with a few clear outliers. Michigan-based cold storage and warehousing venture Lineage Logistics' $1.6 billion funding round accounted for five percent of the projected investment total. Plant-based meat company Impossible Foods raised two rounds totaling $700 million, leading a long and increasingly tech-diverse roster of investor-backed alternative protein companies. There were also a lot of small rounds, which AgFunder says speaks to investor confidence in placing their bets on the agri-food-tech sector at large, and on the next generation of early-stage innovations and technologies. Early-stage investments grew ten percent year-over-year in 2020, as the number of deals grew 15 percent. ************************************************************************************ U.S. Dairy Farm Numbers Continue to Decline Data from the Department of Agriculture shows the number of licensed dairy operators in the United States continues to decline. Analyzed by the American Farm Bureau Federation in a Market Intel article, USDA’s Milk Production report showed the fourth-largest year-over-year decline in the number of licensed dairy operations in the last 15 years. There were 2,550 fewer licensed dairy operations in 2020 than in 2019, when the number dropped by 3,261. The overall number of licensed operations in the U.S. has marched steadily downward since data collection began, declining by more than 55 percent, from 70,375 in 2003 to 31,657 in 2020. AFBF suggests this recent acceleration of the decline reflects how difficult it is to operate a dairy in a low milk price environment. Since the end of 2014, dairy farmers have struggled with low prices followed by an industry-disrupting pandemic that increased milk price volatility and rendered risk management tools mostly ineffective. ************************************************************************************ Food and Ag Groups Seek Shipping Container Action Agriculture groups last week urged the Biden Administration to address the ongoing shipping container shortage. More than 70 food, agriculture and transport groups, including the National Pork Producers Council, penned a letter last week to President Joe Biden, urging the administration to address the ongoing ocean carrier practices the groups say are hampering delivery of U.S. agriculture, food and forestry products to international markets. The letter outlines how carriers are declining to carry cargo and instead opting to return empty containers to Asia. The groups say, “unless the Shipping Act and other tools available to our government are applied promptly, agriculture industries will continue to suffer great financial losses.” The letter explains the Shipping Act provides the Federal Maritime Commission with the authority to prohibit unreasonable, unjust practices, and "to promote the growth and development of U.S. exports through competitive and efficient ocean transportation.” Given the urgency of this situation, the groups ask those tools be immediately applied to stem the current ocean carrier practices. ************************************************************************************ Hagedorn Introduces PP Flexibility for Farmers and Ranchers Act Congressman Jim Hagedorn last week introduced the bipartisan Paycheck Protection Program Flexibility for Farmers and Ranchers Act. The Minnesota Republican says the bill would allow farmers and ranchers categorized as partnerships to utilize gross income when calculating maximum Paycheck Protection Program loan amounts. The CARES Act allowed for farmers and ranchers to apply for PPP loans by utilizing net income in their loan calculations. Unfortunately, Hagedorn says, this prevents many agricultural partnerships from receiving the maximum PPP loan possible. Hagedorn’s legislation provides enhanced flexibility by allowing the use of gross income to calculate the maximum loan amount. The bill also includes a retroactive provision to enable producers, who initially used net income, to recalculate their PPP loans, so long as the loans have not been forgiven. The lawmaker states, “As we approach a return to normalcy and reopening our economy, it is critical that we ensure our farmers and ranchers have access to the resources needed to maintain operations.” ************************************************************************************ USDA Announces Additional Staff Appointments The Department of Agriculture Monday announce two senior appointments. USDA announced the appointment of Dr. Dewayne Goldmon as senior advisor for racial equity to the Secretary of Agriculture. Goldmon has served for the past year as Executive Director of the National Black Growers Council, a Washington, D.C.-based organization that advocates to improve the efficiency, productivity, and sustainability of Black row crop farmers. Agriculture Secretary Tom Vilsack says that with Goldmon, “we will build a USDA that represents and serves all Americans.” USDA also announced the appointment of Andy Green as senior advisor for fair and competitive Markets. Most recently, Green served as a Senior Fellow for Economic Policy at the Center for American Progress in Washington, D.C. Referring to Green’s future with USDA, Vilsack says, “We must create a more level playing field for small and medium producers and a more balanced, equitable economy for everyone working in food and agriculture.”
| Rural Advocate News | Tuesday March 2, 2021 |
Washington Insider: Rising Income and Spending The New York Times reported last week that the American economic recovery came perilously close to falling off a cliff at the end of last year — but that government aid arrived barely in time to prevent a disaster — and possibly paved the way for a dynamic rebound. Personal income surged a remarkable 10% in January, the Commerce Department reported on Friday. Spending increased last month, too, by a healthy 2.4%, largely fueled by a rise in purchases of goods. The report was the latest sign of the economy's slow but steady march forward after a series of setbacks. Yet the data also underscored the extent to which government aid is buoying the economy. The rise in income last month was almost entirely attributable to the $600 government relief checks approved in December and to unemployment insurance payments, the Times said. And while spending ticked up, purchases of services remained depressed as the pandemic continued to weigh heavily on the leisure and hospitality industries even as coronavirus cases fell. “Technically, you could say we're recovering,” said Diane Swonk, chief economist for the accounting firm Grant Thornton. “But the patterns in both income and spending point out the fragility of the recovery without aid.” That the economy remains reliant on government aid is all the more resonant as Democrats in Washington work to push through President Biden's $1.9 trillion relief measure, which would provide a round of $1,400 checks that could further power consumer spending. Although the new data indicated that the recovery is still fragile, it provided fresh evidence that it is no longer in danger of moving in reverse, a trend also seen in recent reports on retail sales and orders of durable goods. The encouraging data led Morgan Stanley on Friday to raise its forecast of first-quarter economic growth to 2% (8.1% on an annualized basis) from 1.8%. Before Congress passed the round of aid that produced the January checks, many economists thought GDP might shrink in the first quarter. There is a possible downside to a robust, stimulus-powered recovery as economists increasingly warn that inflation could become a problem. That would imply a change of posture from the Fed and would be seen as bad news for stocks — and recent trading has been turbulent this week as investors react to recent sudden moves in bond yields. But the report on Friday gave no indication that inflation was spinning out of control. Consumer prices were up 1.5% in January from a year earlier, well below the Fed's 2% target. On Thursday, John Williams, the president of the Federal Reserve Bank of New York, said that “fiscal support, combined with highly favorable financial conditions and steady progress on vaccinations, are all reasons to be optimistic the economy will experience a strong recovery this year,” he said. “With our economy and the global economy still far below full strength, I expect underlying inflationary pressures to remain subdued for some time.” The January data from the Commerce Department showed that although income was up 10% over all, wages rose only 0.7%. And spending reflected the pandemic's disruption to consumer behavior as spending on goods rose 5.8%, while spending on services was up only 0.7%. There was also a “cautionary note” on Friday from the University of Michigan's February index of consumer sentiment, which declined from the previous month. The report said economic expectations had diminished particularly among households making less than $75,000. Still, many economists are now predicting a rebound that is stronger than once seemed possible, a view that the Commerce Department report on Friday bolstered. The Commerce Department report showed that households had $3.9 trillion in savings in January, up from $2.3 trillion in December and $1.4 trillion last February, before the pandemic. The jump in personal income in January was the largest since April, when the figure rose 12.4 percent, lifted by nearly $3 trillion in government transfer payments. That was mostly in the form of $1,200 checks that millions of households received from the federal government. That cash stockpile could grow even larger if Congress passes another round of aid, as now seems probable. But as the pandemic ebbs, Americans are likely to start spending again — turning the built-up savings into fuel for the economy. “We just think there's going to be this huge pent-up demand for services that's going to be funded by that excess savings,” Bryson said. Thus, the year ahead could be bumpy, with consumer spending gradually warming up in the spring and summer as the combination of a new round of stimulus, reduced infections and vaccine distribution gets people and their money into greater circulation, said Gregory Daco, chief U.S. economist at Oxford Economics. “We know what is restraining consumer spending,” he said—namely the health crisis and, for some families, the means. “And what the January report reveals is that if both of these factors are alleviated in terms of constraints, then consumers will spend, and then the recovery will be strong.” So, we will see. Many economists feel that there are too many unknowns just now to allow confident outlook analysis, although many can be expected to try. These are trends producers should watch closely as the continuing war on the COVID virus continues, Washington Insider believes.
| Rural Advocate News | Tuesday March 2, 2021 |
DMC Payments Triggered For More Coverage Levels In January The national average margin for January 2021 is at $7.14 per cwt., which USDA said will mean Dairy Margin Coverage (DMC) payments are triggered for January. Dairy operations that elected Tier 1 margin coverage levels $9.50, $9.00, $8.50, $8.00, $7.50 per cwt. and Tier 2 margin coverage levels at $8.00, $7.50, will be issued a payment. DMC payments are triggered when the difference between the national all milk price and the national average feed cost falls below the margin trigger selected by producers. Enrollment in DMC has fallen below expectations even as the program has triggered payments for some of the coverage levels at least the last two months.
| Rural Advocate News | Tuesday March 2, 2021 |
US Biofuels Interests Eye UK Market As Country Up Biofuel Use. The United Kingdom will increase the share of ethanol in its motor fuel to 10%, up from a current 5%, with the country saying the move is aimed at reducing the impact of driving in the country. The UK Department of Transport said the change could reduce carbon dioxide emissions by 750,000 metric tons per year, the equivalent of taking 350,000 cars off the road. U.S. biofuel groups welcomed the move, hoping that it translates into additional demand for U.S. ethanol as the UK biofuel infrastructure needs to be increased to meet the rising demand. The U.S. exported around 600,000 barrels of ethanol to the UK in 2020, down about 55,000 barrels from 2019 levels as COVID restrictions limited travel and gasoline demand in the UK. Data from the UK indicated that overall ethanol consumption was at 4.7 million barrels in 2019. The hoped-for rise in U.S. ethanol exports to the UK would be a welcome demand development, but may not be a sustained market given an expected push to bolster the biofuel infrastructure in the UK.
| Rural Advocate News | Tuesday March 2, 2021 |
Tuesday Watch List Markets As usual, traders will keep an eye on the latest weather forecasts and watch for any export sale news that might emerge. There are no official reports on Tuesday's docket. Weather Tuesday will be dry and mild over most primary crop areas. This combination favors snow melt along with improving conditions for transportation and livestock. Rain will focus along the Gulf Coast.
| Rural Advocate News | Monday March 1, 2021 |
Vilsack: China Living Up to Trade Deal Secretary of Agriculture Tom Vilsack says China is making good on its promises in the phase one trade deal it signed with the U.S. last year. CNBC says Vilsack points out the agreement allows market conditions to determine how much it has to buy from American farmers. COVID-19 qualifies as a market condition that would legitimately impact how much China has to buy under the agreement. In the first year of the deal, China imported $100 billion of the U.S. goods agreed to in the deal; that’s 58 percent of the $173.1 billion-goal set in 2020. However, the secretary says he’s upbeat on Chinese progress. “I think they still have a few days to be able to meet the phase one, year one goal,” Vilsack says. “Whether they meet the exact amount, I think, is in question because of the pandemic.” The secretary will tackle a lot of challenges in the world of U.S. ag, including the COVID-19-era rise in hunger, as well as a sharp drop in restaurant demand for food products. ********************************************************************************************** USTR Nominee Testifies Before Senate Finance Committee Katherine Tai, President Biden’s nominee for U.S. Trade Representative, testified at a confirmation hearing before the Senate Finance Committee last week. Politico says she addressed concerns that the Biden Administration “will stand still” on trade policy. Senators in both parties pushed Tai on the administration’s pledge that it wouldn’t negotiate new trade deals until it gets the domestic economic stimulus package it wants from Congress. The committee’s Ranking Member Mike Crapo (CRAH-poh) of Idaho told Tai, “You must make the president understand that trade is a domestic priority.” The USTR nominee says she’ll stay busy on trade policy but didn’t stake out concrete positions on the major questions facing the agency. A potential trade deal with the United Kingdom is one of those questions, as a deal must get signed by July 1 to qualify for fast-track treatment under the trade promotion authority. To meet that deadline, the USTR would need to formally notify Congress by April 1 of its intent to sign a pact. “If I’m confirmed, I’ll need to review the progress and conversations so far during the talks with the U.K.,” she said to the committee members. Tai was also noncommittal about restarting negotiations on a new trade deal in the Asia-Pacific after former President Trump pulled the country out of the Trans-Pacific Partnership. ********************************************************************************************** Scott and Thompson Agree/Disagree on Climate Change The tone is set on the climate change debate in the House Agriculture Committee, and it took place during the committee’s first hearing. Committee Chair David Scott says changes in weather patterns bring serious risks to production agriculture, forest resources, and the overall economy. He says, “These risks cannot be understated.” He also says the USDA’s Economic Research Service notes that climate change will likely affect risk-management tools, financial markets, and America’s global food security, as well as many other areas. Ranking Member G.T Thompson says agriculture has been on the menu when it comes to climate change, noting that last week’s hearing now puts agriculture at the table. The Hagstrom Report says Thompson wants to be very clear on his position, which is that “The climate is changing, the Earth’s temperature is rising, and I trust the science that global industrial activity has contributed to the issue.” Thompson says we should be reducing global emissions because it’s the right thing to do. “It requires smart science-based policies,” Thompson adds. “But the apocalyptic narrative of the world coming to an end within a decade is not evidence-based and isn’t supported by science.” ********************************************************************************************** Soybean Growers Approve 2021 Resolutions American Soybean Association members completed the organization’s annual resolutions process to set the tone and direction for policy advocating in the months ahead. The organization aims each year to build on sound existing resolutions by adapting where needed and supplementing with new resolutions to address emerging priorities. A couple of priorities that the ASA will be focusing on more often in 2021 is climate and conservation. Kevin Scott is the President of the ASA and a soybean farmer from South Dakota. “Throughout this year’s document, we recognize the role that climate and conservation will play in policy discussions in 2021; from thoughtfully addressing development of public and private ecosystem services markets to promoting precision agriculture technology as a tool to improve environmental stewardship while providing economic returns to growers,” Scott says. The many resolutions they approved include Trade Promotion Authority reauthorization, a sufficiently funded Commodity Credit Corporation account to ensure timely benefits for farmers, and a strong farm safety net and crop insurance program, including expanding support for double-crop soybean coverage. They also want to see the development of voluntary carbon markets that incentivize agricultural conservation and significant increases in rural infrastructure funding. ********************************************************************************************** “Thank You Farmers” Project Donations Reach $3 Million Culver’s created the “Thank You Farmers Project” back in 2013 and has raised a lot of money since then. The donation total recently hit $3 million, and the funds go to support agricultural education. The Thank you Farmers Project is about more than showing appreciation for the hard work of today’s farmers. It’s also about ensuring America has enough food to serve its growing population by supporting agricultural education efforts that encourage smart farming. One way that Culver’s does this is by supporting FFA. “Today’s FFA members are tomorrow’s ag leaders,” says Allison Wedig, Culver’s marketing specialist and a former Wisconsin FFA state president. “Many of these students will go on to dedicate their careers to ensuring a sustainable future food supply, so we want to support them and give them a forum to share their voices and passions.” One of the many ways that Culver’s supports FFA is through the annual FFA Essay Contest that just launched on February 22. As in the past six years of the contest, three winners will receive funds for their FFA chapters, including $7,500 for first place, $5,000 for second place, and $2,500 for third. Go to www.culvers.com/essaycontest for more information. The deadline is April 19. *********************************************************************************************** Corn and Wheat Exports Sales Drop to Marketing Year Lows The USDA says export sales of corn and wheat dropped to marketing-year lows last week while soybean sales plunged. Corn sales to overseas buyers dropped to 453,300 metric tons in the seven days that ended on February 18. That’s down 55 percent from the previous week and 85 percent from the previous four-week average. It’s also the lowest point since the 2020-2021 marketing year began last September 1. Peru was the biggest buyer at over 160,000 metric tons, followed by Vietnam and Japan. Unknown countries canceled shipments of just over 300,000 metric tons. Total exports fell 14 percent to 1.19 million metric tons. Wheat sales totaled 167,700 metric tons, down 58 percent week-to-week and 67 percent from the four-week average, the lowest level since the marketing year got started. Soybean sales to offshore buyers plunged to 167,900 metric tons, 63 percent lower than the prior week and 72 percent from the four-week average. The Netherlands was the top buyer at 139,100 metric tons, followed by Japan and Germany.
| Rural Advocate News | Monday March 1, 2021 |
Washington Insider: New Minimum Wage Initiative Opposed Bloomberg is reporting this week that a fresh initiative in the U.S. Senate to put a tax penalty on big companies as a way of forcing higher minimum wages is prompting a skeptical reaction among some economists including a top adviser to former President Barack Obama. “This is a really big, complicated, brand new proposal. It is possible that it works,” Jason Furman, who served in Obama's White House and is now a professor of economic policy at Harvard University, said in a tweet. “It is also possible that another tax version works. But I would be extremely nervous about trying out a brand new idea like this with virtually no vetting.” Two Senate committee chairs, Ron Wyden, D-Ore., and Bernie Sanders, I-Vt., pitched the idea of a tax penalty Thursday night, following a procedural blow to the $15 minimum-wage provision Democrats wanted in President Joe Biden's COVID-19 relief bill. As of Friday afternoon, Wyden's staff were still drafting the plan, which would include a 5% payroll-tax penalty for large companies that pay lower wages, and a tax-credit incentive of as much as $10,000 for small businesses that boost wages. The U.S. House passed the relief bill, including the minimum-wage measure, early Saturday. Yet efforts to use the bill as a vehicle have hit a wall in the Senate after the chamber's parliamentarian, a nonpartisan official, ruled the wage hike doesn't qualify for the fast-track budget procedure used by Democrats. Economists already are debating the value of a higher minimum wage, with most seeing some trade-off – depending on the level – between income and spending gains and job losses as employers absorb higher labor costs, Bloomberg said. One disadvantage of targeting big companies is that they employ only a fraction of lower-income workers, and have more flexibility to get around new rules. Wyden and Sanders also did float incentives to boost wages among smaller firms, many of which have been hit hard by the pandemic. “Most minimum wage workers are not in mega corporations,” Arindrajit Dube, a University of Massachusetts economics professor who's studied the minimum wage, said in a tweet Friday. “Also, what safeguards would prevent large companies from outsourcing low wage work to smaller contractors?” Wyden said in his outline that there would be measures “to prevent companies from trying to outsource labor to avoid paying living wages.” Introducing new tax policy is complicated, and would likely lead to lobbying for exceptions and debate about who gets included and who doesn't, said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. “It just becomes this eternal struggle to get your firm included in the benefits or excluded from the costs,” Stanley said in an interview. Many of the largest employers of low-paid workers in the U.S., including Amazon.com Inc., Target Corp., Walmart Inc. and Costco Wholesale Corp. have already been raising wages of their employees in recent years under pressure from critics and labor groups. The country's big corporations – who would be subject to the proposed tax penalty – wouldn't see as much of an impact from a federal minimum-wage increase as small businesses, which strongly oppose the proposal. “States and localities have already made significant adjustments to boost minimum pay, said Andrew Husby and Eliza Winger of Bloomberg economics. A third of the U.S. workforce is on track to live in a state with a minimum wage of $15 or higher in 2026. When New York is included, the total is closer to 38%. New York's rate is $12.50, though higher-cost downstate counties already operate with a $15 minimum.” Retail groups have also pushed back on the wage penalty, saying that it would hurt already-suffering businesses. “Threatening businesses with a whopping payroll tax increase – many of whom were shut down for months in 2020, and had their operations restricted by as much as 75% throughout the holiday season – should be a non-starter for those who care about economic recovery,” Austen Jensen, senior vice president of government affairs at the Retail Industry Leaders Association, said. White House Press Secretary Jen Psaki said Friday that the Biden administration didn't yet have a position on the proposals from Wyden and Sanders, noting that they had only just been released. “If you have a policy that will affect tens of millions of workers, businesses and more, then it needs more time/scrutiny/debate than, say, a think-tank white paper,” Furman said. “We can't point to another country that does this. We can't point to a state that does this. I don't know of any think tank proposals that have been discussed and debated (there may be some but not high profile). I don't know of any academic papers that address the issues. So, we will see. Political pressure on the new administration to raise the minimum wage is intensifying, but it appears that significant opposition is now emerging, as well. This is a fight producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Monday March 1, 2021 |
Mostly Static Food Price Outlook USDA did not alter its major food price inflation outlook in its forecast issued Thursday from levels in January, still forecasting overall food price inflation for 2021 2% to 3% overall, with food away from home (restaurant) prices also expected to rise 2% to 3%. That would put overall food price inflation for 2021 in line with the 20-year average of 2.4% while the restaurant price rise the past 20 years has been 2.8%. Food at home (grocery store) prices are looked to up be 1% to 2% in 2021, below the 20-year average of 2%, but well below the 2020 pandemic-influenced rise of 3.5% level. Both restaurant and overall food prices rose 3.4% in 2020. Within the categories of food at the grocery store, USDA only adjusted its forecasts for fats and oils, now putting it at 1% to 2%, and sugar and sweets at 1.5% to 2.5%. That marks a sizable jump for fats and oils as USDA in January saw those prices unchanged — a range of down 0.5% to up 0.5%, while sugar and sweets were expected to rise 1% to 2% in last month's forecast. But these mostly static forecasts may not remain that way as USDA cautioned “uncertainty about the effect of the pandemic on food prices remains largely unresolved.” Whether their forecasts remain closer to the 20-year averages in 2021 than the levels seen in 2020 remains to be seen. But they are still elevated from the period leading up to the pandemic where food price increases at the grocery store were less than 1% in 2018 and 2019 and actually declined from the prior year in 2016 and 2017.
| Rural Advocate News | Monday March 1, 2021 |
USDA's Vilsack Stays Mum On CCC Use For Climate Programs USDA Secretary Tom Vilsack held his first briefing with reporters after taking the helm at USDA, talking about climate change goals for the Biden administration. But Vilsack stayed silent on the key issue of how he would pursue climate and conservation policy, including a timeline for setting up an ag carbon bank, but he said he would be working with Capitol Hill on those topics. He also did not indicate if he believes he has authority to tap the Commodity Credit Corporation (CCC) for an ag carbon bank. “If there is congressional authority that we need or additional appropriations we need, we ought to be advocating for that. Over the course of the next several months, I'm sure that we will be doing a little bit of all of that,” he said. He will meet with the USDA climate team today and discuss further the efforts that would involve USDA. He did note that China “seems to be living up to its responsibilities” relative to the Phase One commitments, but cautioned that “at any point in time, because of the complex nature of the China-U.S. relationship, things can happen that might affect those purchases.
| Rural Advocate News | Monday March 1, 2021 |
Monday Watch List Markets I don't know if the market will be in like a lion or a lamb on the first day of March, but traders will likely start by checking the latest weather forecasts and pausing for a possible export sale announcement at 8 a.m. CST. The Institute of Supply Management's U.S. index of manufacturing is due out at 9 a.m., followed by USDA's weekly report of grain inspections at 10 a.m. and the Fats and Oils report from NASS at 2 p.m. Weather A broad swath of the Delta, Mid-South and Southeast will see rain Monday, with some flooding possible. Other crop areas will be dry. Snow in portions of the northern Midwest will diminish during the day. Temperatures will be cold for the season in the northern Midwest and seasonal to above normal elsewhere.
| Rural Advocate News | Friday February 26, 2021 |
Vilsack Starts Second Tenure at USDA, Climate Work Begins Agriculture Secretary Tom Vilsack spoke with the media Thursday, following this week's Senate vote to confirm his nomination. Vilsack was sworn in Wednesday evening by Vice President Kamala Harris. He returns to the Department of Agriculture after serving eight years at the same post during the Obama administration. Vilsack spoke as the House Agriculture Committee explored U.S. agriculture's role in climate change solutions. Much of the climate conversation regarding agriculture focuses on establishing a climate bank or market, paying farmers for climate-smart practices. Vilsack says President Joe Biden has a vision of a net-zero emission U.S. agriculture, adding, "I think it has the capacity to fundamentally change U.S. agriculture in a positive way and create new revenue sources." However, he says that work won’t happen in a single administration, but added “the work has to begin.” Vilsack planned to meet with the USDA climate team Friday. Vilsack says USDA’s role will be to provide technical guidance to lawmakers and the administration in crafting climate policies. ************************************************************************************ USDA Extends CFAP Application Deadline The Department of Agriculture Thursday extended the deadline to apply for the latest round of the Coronavirus Food Assistance Program. Agriculture Secretary Tom Vilsack told reporters the sign-up period will be extended, allowing producers more time to apply. The deadline will extend 30 days after USDA completes a review of the program. As part of the Biden administration review of federal programs, USDA suspended the processing and payments under the program. The American Farm Bureau Federation requested the deadline extension in a letter to Vilsack earlier in the week. Farm Bureau President Zippy Duvall stated, “Recent severe weather and the suspension of CFAP payments led to challenges and confusion surrounding the application process.” Vilsack says USDA is in the process of reviewing the program. Vilsack says, “We want to make sure that as we implement this next level of support that we do so, within the resources provided, do it in an equitable way, and try to respond to some of the legitimate concerns." ************************************************************************************ CoBank: Weak Dollar Benefits Commodities The value of the U.S. dollar weakened substantially since March 2020 and is expected to experience modest deflation in 2021, making U.S. ag products more competitive globally. However, CoBank reports not all commodities are affected equally given the diversity in global export competition and foreign exchange rates. Fundamental factors like tariffs and weather conditions in key agricultural producing regions often dominate market dynamics despite currency impacts. A CoBank researcher says, “some agricultural commodities like grains, oilseeds, and cotton will face a currency headwind.” A CoBank index tracking commodities reveals that U.S. animal protein exports are expected to benefit from a modest tailwind fueled by a weaker U.S. dollar in 2021. The U.S. trade-weighted grain and oilseed index strengthened by 14 percent in 2020 and is expected to gain another four to five percent in 2021. Dairy products are expected to receive potential support from global factors. Finally, U.S. cotton faces headwinds from weaker foreign currency values in 2021, according to CoBank. ************************************************************************************ Coalition Urges Lawmakers to Protect Crop Insurance The Crop Insurance Coalition urges lawmakers to protect crop insurance from budget cuts in the upcoming fiscal year 2022 budget process. The coalition of 58 partners recently sent a letter to key lawmakers detailing the request. Letters were also sent to the White House Office of Management and Budget and Agriculture Secretary Tom Vilsack. The coalition says farmers need access to a strong and secure federal crop insurance program. The letters say the last several years have brought an onslaught of uncertainty for America's farmers and ranchers - from weather extremes to the disruptions of international markets to COVID-19 and its unique challenges. Given the challenges rural America faces and the nature of crop insurance, the coalition says cuts to the program should be avoided. Referring to ad hoc programs supporting farmers over the last three years, the letter states, "it would only serve to undercut these efforts to propose harmful changes to a crop insurance program." ************************************************************************************ Western U.S. Stress by Drought The Western half of the United States is reported in various stages of drought in the latest U.S. Drought Monitor, released Thursday. Much of the Southwestern U.S. is in a classified extreme or exceptional drought, with the worst states being Nevada, Utah, Colorado, Arizona and New Mexico. The Drought Monitor reports frequent Pacific storms battered the Northwest and tracked southeastward across the Northern and Central Rockies, dropping plentiful moisture on Washington, Oregon, northern California, Idaho, and western Montana. However, the moisture missed most of the Southwest. In contrast, much of the Eastern half of the country is not experiencing drought conditions, with a few small pockets of abnormally dry conditions. Storms also dropped widespread precipitation on much of the Southeast, mid-Atlantic, and coastal New England, while most of the Midwest saw light frozen precipitation in the last week. Little or no precipitation fell on south Texas and northeastern Texas into southeastern Oklahoma, expanding drought severity in the region. ************************************************************************************ USDA Invests $42 Million in Distance Learning and Telemedicine The Department of Agriculture Thursday announced a $42.3 million investment to help rural residents access health care and educational opportunities. USDA says rural areas are seeing higher infection and death rates related to COVID-19 due to several factors, including a much higher percentage of underlying conditions, difficulty accessing medical care, and lack of health insurance. A recent report by the Rural Policy Research Institute’s Center for Rural Health Policy Analysis found infection and death rates in rural America due to COVID-19 are 13.4 percent higher than in urban areas. USDA Economic Research Service data also confirms the data. The $42.3 million includes $24 million provided through the CARES Act and will reach five million rural residents. Agriculture Secretary Tom Vilsack says, “With health care and education increasingly moving to online platforms, the time is now to make historic investments in rural America to improve quality of life for decades to come.”
| Rural Advocate News | Friday February 26, 2021 |
Washington Insider: Powell Suggests Congress Explore Child Care Options The New York Times reported this week that Fed Chair Jerome Powell is sufficiently concerned about the decline in female participation in the labor force that he suggested on Wednesday that improved child care support might help pull more women into the labor market. The Fed chief studiously avoided commenting on most specific government policy proposals during three hours of wide-ranging testimony before the House Financial Services Committee. But he did acknowledge that enabling better options for affordable child-care is an “area worth looking at” for Congress. “Our peers, our competitors, advanced economy democracies, have a more built-up function for child care and they wind up having substantially higher labor force participation for women,” Powell said. “We used to lead the world in female labor force participation, a quarter-century ago, and we no longer do. It may just be that those policies have put us behind.” Powell limited his supportive comments but stressed the near-term need to help workers who have been displaced from their jobs during the pandemic. He made it clear that the labor market remains “far from healed, that the pandemic's economic fallout has disproportionately hurt women and minorities and that both Congress and the central bank have a role to play in supporting vulnerable families until the economy has recovered more fully.” Women's labor force participation had climbed for decades in the U.S. before stalling out — and then actually dropping slightly — starting in the 1990s. Powell commented that adult U.S. women hold jobs or look for them at lower rates than women in some other major advanced economies, such as Canada or Germany. Powell noted that the Federal Reserve Bank of San Francisco had examined the question of why the share of Canadians who work or look for jobs had climbed even as the U.S. rate had fallen. The report concluded that most of the gap came from declining participation by women. “And they pointed to caregiving policy differences as a likely culprit,” he said. “Parental leave policies in Canada provide strong incentives to remain attached to the labor force following the arrival of a new child,” the paper, written by the San Francisco Fed president, Mary Daly, and co-authors, pointed out. The fact that child care responsibilities fall heavily on women in the United States has come under a brighter spotlight during the pandemic which has shuttered schools and disproportionately left women bearing added child care responsibilities. While women lost jobs less dramatically than men during the 2009 recession, their employment rate is down by about as much as men's is now — so, in measures of the share of people who are either working or looking, women have lost more ground. Female participation dropped 2.1 percentage points to 55.7% in January compared with February 2020, whereas men's participation has dropped 1.7 points to 67.5%. Throughout his tenure as Fed chair, Powell has been keenly focused on the job market and has repeatedly argued that both monetary and fiscal policymakers should support displaced workers so that they can make their way back into jobs when the economy reopens. While the Fed can help the economy and the job market improve broadly, helping individual groups in a targeted way is generally left to elected officials. Still, the Fed says it intends to help foster conditions for strong economic growth overall which pulls people into the labor market and helps set the stage for higher wages. Officials are trying to do that by keeping interest rates low and buying large quantities of government-backed bonds, policies that can fuel both lending and spending. Powell has been pledging for months that the Fed would use its policies to help the economy get through the pandemic but political concerns that big government spending could fuel economic overheating are now increasing. Still, Fed officials argue that weak price gains, not runaway ones, are the modern problem. Powell reiterated that message Wednesday and commented that the Fed is still “trying to bolster prices. We believe we can do it, we believe we will do it. It may take more than three years,” he said. The Fed tweaked its approach to monetary policy in 2020, saying that it would aim for periods of slightly higher inflation and that it would no longer seek to cool off the economy just because the unemployment rate was falling — an approach Fed governor Lael Brainard explained to a Harvard economics course Wednesday morning. The Fed was relatively patient in lifting interest rates after the 2007 to 2009 recession — leaving them near zero until 2015 and then raising them slowly, as unemployment dropped to 50-year lows. Workers who had been counted out began to re-enter the labor market and employers started to go to greater lengths to recruit and train talent. “At very low levels of unemployment” the United States “saw benefits going to those at the lower end of the spectrum—which means disproportionately African Americans, other minorities, and women,” Powell said. “With our tools, what we can do, is try to get us back to that place.” So, we will see. Clearly, Powell and other Fed officials are convinced of the strength of their policy positions and are determined to continue to work to strengthen investment. This is a tense moment for advocates of highly interventionist policies in both monetary and fiscal arenas, fights that producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Friday February 26, 2021 |
Tai Pledges Work On USMCA Enforcement, Addressing China As USTR The Senate Finance Committee heard from Katherine Tai, President Joe Biden's choice to be U.S. Trade Representative (USTR), and she offered some insight into focus should she be confirmed to that role. Tai pledged her first focus will be on helping the U.S. recover from the pandemic and the “economic crisis.” USTR's role in that is to “build out strong supply chains that will get our economy back on track.” The longer-term focus will be on making sure that trade benefits all U.S. citizens, not just consumers. “I will make it a priority to implement and enforce the renewed terms of our trade relationship with Canada and Mexico. Too often in the past, Congress and the administration came together to finalize and pass a trade agreement. But then other urgent matters arose and we all moved on.” She noted the U.S.-Mexico-Canada Agreement (USMCA) is an opportunity to “break that trend” as it is an “important step in reforming our approach to trade.” She did not specify issues with the WTO but said that she would “prioritize rebuilding our international alliances and partnerships.” Tai also focused on China, labeling them “simultaneously a rival, a trade partner, and an outsized player whose cooperation we'll also need to address certain global challenges.” Having previously been the chief enforcer at USTR on China's unfair trade practices, Tai said there must be a “strategic and coherent plan for holding China accountable to its promises and effectively competing with its model of state-directed economics” and backed Biden's call to build a “a united front of U.S. allies” when dealing with China. “We must remember how to walk, chew gum and play chess at the same time.”
| Rural Advocate News | Friday February 26, 2021 |
USDA Extends Deadline For CFAP Applications The application deadline for the Coronavirus Food Assistance Program--Additional Assistance (CFAP-AA) will be extended beyond the current deadline of February 26. USDA took the action after a request by the American Farm Bureau Federation that the deadline be extended due to the regulatory review that suspended CFAP-AA payments. USDA spokesman Matt Herrick said in an email to some news outlets that the CFAP-AA review is “ongoing, and we anticipate a decision in the weeks ahead.” Herrick confirmed the deadline and noted the agency continues to accept applications “so that, once a determination is made on the direction, we are ready to act.” He said there would be at least another 30 days for producers to signup after any decision is announced, a decision that matches the request by AFBF. “What we're doing now is listening and gathering feedback so that we get help to as many producers as possible without focusing on one group or geography at the expense of another,” Herrick said. There is no timeline yet for any resumption of the CFAP-AA process even though USDA had indicated when it suspended the effort in late January that the agency would be addressing the issue “in coming days.” Now a timeframe of in the “weeks” ahead is being mentioned by USDA.
| Rural Advocate News | Friday February 26, 2021 |
Friday Watch List Markets Friday at 7:30 a.m. CST, the U.S. Commerce department will release reports on U.S. personal incomes and consumer spending in January, followed by the University of Michigan's consumer sentiment index at 9 a.m. USDA's annual report of cold storage is set for 2 p.m. CST. Traders will remain attentive to the latest weather forecasts and to any news of export sales that might emerge. Weather Moderate to locally heavy rain is in store for the Delta and Mid-South Friday. We'll also see widespread snow in the Northwest U.S. crop areas. Dry conditions will be in place elsewhere. Winter wheat areas of the Plains have no meaningful moisture in the forecast.
| Rural Advocate News | Thursday February 25, 2021 |
AFBF: Farmers Need More Time to Apply for CFAP The American Farm Bureau Federation is asking the Department of Agriculture to extend the deadline to apply for the Coronavirus Food Assistance Program. In January, an additional $13 billion in assistance was made available to help farmers and ranchers suffering losses due to the COVID-19 pandemic. The current deadline is this Friday, February 26, but recent severe weather and the suspension of CFAP payments led to challenges and confusion surrounding the application process. In a letter sent today to Agriculture Secretary Tom Vilsack, AFBF President Zippy Duvall said the recent regulatory freeze on pending executive actions, though common, "has created confusion for farmers and ranchers with respect to eligibility and the application process." The letter also notes severe weather, which impacted travel conditions and created broadband disruptions, may have also impacted farmers' ability to complete the application process. AFBF asks USDA to extend the deadline to apply for assistance by at least 30 days after the regulatory review is completed. ************************************************************************************ Pilgrims Pride Pleads Guilty to Price Fixing Pilgrim's Pride Corporation this week pleaded guilty to price-fixing allegations. The Department of Justice announced the plea, and a sentence to pay approximately $107 million in criminal fines. According to the plea agreement entered in the U.S. District Court in Denver, from as early as 2012 and continuing at least into 2017, Pilgrim's participated in a conspiracy to suppress and eliminate competition for sales of broiler chicken products in the U.S. that affected at least $361 million in Pilgrim's sales of broiler chicken products. Pilgrim's is the first company to plead guilty for its role in a conspiracy to fix prices and rig bids for broiler chicken products. Broiler chickens are chickens raised for human consumption and sold to grocers and restaurants. Ten executives and employees at major broiler chicken producers have also previously been charged. The case results from an ongoing federal antitrust investigation into price-fixing, bid-rigging, and other anticompetitive conduct in the broiler chicken industry. ************************************************************************************ Lawmakers Introduce emergency Feed Bill Legislation introduced this week in the Senate would provide farmers and ranchers with additional flexibility to alleviate feed shortages in years with widespread excessive moisture, flooding or drought. The Feed Emergency Enhancement During Disasters with Cover Crops Act would create an emergency waiver authority for the Secretary of Agriculture to allow for haying, grazing or chopping of a cover crop on prevented plant acres before November 1, in the event of a feed shortage due to extreme weather. Senators Tammy Baldwin, a Wisconsin Democrat, and John Hoeven, A North Dakota Republican, introduced the legislation. The bill states that under the waiver, producers would not see a reduction of their crop insurance indemnity. The legislation also directs the Agriculture Secretary to establish regional haying and grazing dates for each crop year. The current date, November 1, is set on a nationwide basis and disadvantages producers in the upper Midwest. Representatives Dusty Johnson, a South Dakota Republican, and Angie Craig, a Minnesota Democrat, introduced companion legislation in the House. ************************************************************************************ Legislative Fix Introduced to Make More Farmers Eligible for PPP New bipartisan legislation would make more farmers and ranchers eligible for the Paycheck Protection Program. Representative Ron Kind, a Wisconsin Democrat, and Jeff Fortenberry, a Nebraska Republican, recently introduced the Paycheck Protection Clarification for Producers Act. The legislation would allow farmers and ranchers organized as partnerships or limited liability companies access to the program. The lawmakers say these farmers have been unable to apply for loans under the new calculation because of the Small business Administration's interpretation of eligibility for partnerships or limited liability companies. Representative Fortenberry says Nebraska leads the U.S. in per capita PPP loans approved. However, adds, "Due to quirks in the law, some farmers hard hit by COVID-19 were left out.” Representative Kind states, “No farmer should be shut out of this crucial program and denied a financial lifeline because of an interpretation error.” Kind previously led legislation that allowed farmers more access to the PPP, which was included in the latest COVID-19 relief package. ************************************************************************************ Missouri Lawmakers Seek to block Multi-state Transmission Line Missouri lawmakers are again seeking to block a multi-state high voltage transmission line for wind energy. The St. Louis Post Dispatch reports a new measure in the Missouri legislature would require Invenergy, the Grain Belt Express future transmission line owner, to receive approval from individual counties. The move is one of many to block the project, as lawmakers seek to stop a private company from using eminent domain to take land for the project. The Grain Belt Express would take wind energy from Kansas through Missouri, Illinois and Indiana. The Missouri Supreme Court earlier ruled the project be granted public utility status because the $2.3 billion project is in the public’s interest. The transmission line in Missouri is expected to cross the property of 570 landowners, stretching more than 200 miles across the northern sector of the state. Invenergy says the project will play a major role in economic recovery in the Midwest by supporting jobs, adding broadband infrastructure, community investment and energy savings. ************************************************************************************ Mentorship to help Underserved Farmers with Conservation A new mentorship program is linking historically underserved farmers and ranchers with award-winning conservationists. Sand County Foundation’s Vice President of Agricultural Research, Dr. Heidi Peterson, says, “Now historically underserved farmers and ranchers have access to a reliable network of conservation mentors.” Since 2003, the Sand County Foundation’s Leopold Conservation Award has recognized nearly 150 farmers, ranchers and forestland owners nationwide for their efforts to improve soil health, water quality and wildlife habitat. The Department of Agriculture’s Natural Resources Conservation Service awarded Sand County Foundation a Conservation Collaboration Grant to support this opportunity to empower award recipients as mentors. Now, the Sand County Foundation is seeking applicants for the program. Sand County Foundation's network of Leopold Conservation Award-winning farmers will serve as program mentors. Participants will have access to the network and receive technical and mentorship support on navigating USDA conservation programs and practices. Learn more and sign up for this free mentorship opportunity at www.sandcountyfoundation.org.
| Rural Advocate News | Thursday February 25, 2021 |
Washington Insider: Farm Size Battleground Revisited One of the perpetual battles in Washington concerns the extent to which government programs focus on larger farms. The issue crosses party lines and Congress has written many complex limits on benefits for farms of various sizes for many years. This week, it seems that battle is rejoined. A new report by an ag advocacy organization says that the Trump administration aimed its “bailouts” increasingly to the nation's biggest farms. The report was written by the Environmental Working Group (EWG), an environmental advocacy group that highlights issues of equity, which it is watching closely as the Biden administration designs potential new climate-related and other financial incentives for farmers. The report said that only 1% of farm aid recipients collected 23% of subsidy payments in 2019, up from 17% in 2016 as former President Donald Trump's trade bailout swelled payments. Their portion crept up to 24% in the first half of 2020, the most recent period covered in the data, as farm aid hit a record level with coronavirus relief payments, the EWG said. That is the largest share of federal farm subsidies going to the top 1% – the 7,873 subsidy recipients who got the highest payments – since 2007, according to the analysis. The average payment for that group was $497,907. The findings followed earlier criticism from Democrats concerning inequities of Trump administration farm bailouts. In addition, Bloomberg said that a number of academic studies concluded that trade aid payments were greater than farmers' actual losses from the tariff conflict with China. A Government Accountability Office report issued in September found the top 25 recipients of trade aid in 2019 received an average of $1.5 million per farm. “This certainly adds to the questions about the way that program was designed,” said Jonathan Coppess, a University of Illinois professor who ran the federal agency that administers farm subsidies during the Obama administration, but wasn't involved in the advocacy group's analysis. “Why all of a sudden did you see this big a shift?” American farmers in 2020 had their most profitable year since 2013, largely because of federal aid which accounted for 38% of their net income, USDA reported earlier this month. Crop prices also rose late in the year as China stepped up agricultural imports. “The largest and wealthiest farms should not be getting most of the money, because they have large assets to fall back on in times of trouble,” said Anne Schechinger, a senior analyst with the group. “We're at a time when so many Americans have lost their jobs, are struggling to put food on the table or keep their businesses open, it makes you wonder why so much money is going to farmers, especially the largest, wealthiest farmers.” She said the shift in subsidy payments toward larger farms in 2019 likely was driven by Trump's adoption of a more generous formula for computing trade losses that year and a decision to double the maximum trade aid benefit per person. Large operators sometimes increase their subsidy payments by including relatives, even those who live in distant cities, as actively engaged in management of the farm, multiplying the benefits they are allowed, EWG said. Trump administration officials defended the program against criticism, arguing that they tend to be more productive and so suffer larger losses from trade-related commodity price drops. Schechinger said the Environmental Working Group, which advocates re-directing farm subsidies to smaller operators and conservation programs, released the findings in part to focus attention on inequities in aid distribution as the Biden administration considers financial incentives to encourage farmers to adopt climate-friendly practices. Administration officials have floated ideas including a carbon bank to finance payments to farmers who take steps to sequester additional carbon in soil and other measures to reduce greenhouse gas emissions. Schechinger said her organization wants the USDA to avoid advantaging larger operations over smaller ones when it makes proposals. The Environmental Working Group regularly obtains data on federal farm subsidy payments from USDA through the Freedom of Information Act. Its analysis covered total farm subsidy payments, which includes both one-time programs under President Trump and continuing farm programs authorized by Congress. The issue of how farm benefits are allocated among farms of varying sizes is thorny and has long persisted. Many farm operations are highly capitalized now into larger units that are very efficient--and account for the vast bulk of U.S. food and fiber production, even although their numbers are relatively small. As a result, programs intended to affect production or other key aspects of the sector often prominently include larger units – a highly controversial outcome especially for those who focus closely on social aspects of the sector. So, we will see. Recent government supports have been important to the sector and almost certainly will continue to be highly controversial, especially as they are deeply involved in issues of trade policy, along with conservation, supplemental nutrition and income support, Washington Insider believes.
| Rural Advocate News | Thursday February 25, 2021 |
Vilsack Wins Senate Approval To Again Head USDA Tom Vilsack was sworn in Wednesday evening to lead USDA under the Biden administration, a post he held for eight years in the Obama administration. The Senate approved the nomination 92-7 on Tuesday, with six Republicans voting against his nomination and Sen. Bernie Sanders, I-Vermont. Sanders caucuses with the Democrats and is the first lawmaker from that side of the aisle to vote against a Biden administration nominee. In explaining his vote, Sanders said he didn't have a major issue with Vilsack but thought that Biden “could have done better” with his choice of someone to lead USDA. Republican Sens. Rick Scott of Florida, Rand Paul of Kentucky, Josh Hawley of Missouri, Marco Rubio of Florida, Ted Cruz of Texas, and Dan Sullivan of Alaska, opposed returning Vilsack to head USDA. Now the attention will quickly shift to lower-level appointments at USDA that require Senate confirmation.
| Rural Advocate News | Thursday February 25, 2021 |
Former USTR Official Touts Changes By China That Were Part Of Phase One Agreement Former top U.S. ag trade negotiator at the Office of the U.S. Trade Representative (USTR) Gregg Doud, Tuesday told a Farm Foundation forum that market access in the agreement was critical. He stressed implementation of nearly all the 57 market access commitments, placing emphasis on the approval of more U.S. facilities to export to China. “Before we started [Phase 1] negotiations, we had about 1,500 facilities in the U.S. eligible to export agricultural products to China,” Doud said. “So that would have been beef processing facilities, dairy facilities, pet food facilities… 1,500 of those. Today, we now have well over 4,000 facilities in the U.S. eligible to export their products to China.” That gives the U.S. access to the Chinese market “we never had before, and this is a major change,” Doud said. “The improvements in market access that we now have in place are going to treat us well here going forward.” As for the purchase commitments, Doud simply said it comes down to U.S. competitiveness, a point focused on by Chinese negotiators. He also noted the two sides spent a considerable amount of time talking about ethanol, with trade in the corn-based fuel something Doud said he believed China was truly interested in. “My sense is that China really is trying to think through this whole notion of infrastructure for the use of ethanol,” Doud said. “You know, it took us a long time to build that infrastructure in the United States.” As for overall market conditions moving ahead, Doud predicted continued volatility, notable with China involved in the market. He said there is no way to say with certainty that in two or three years whether China would be importing 30 million metric tons of corn or just 5 million ton. The shift by China away from feeding swill to hogs is a key that Doud has focused on in his comments on China before, and said that is “maybe one of the biggest things that ever happened in the history of world agriculture.”
| Rural Advocate News | Thursday February 25, 2021 |
Thursday Watch List Markets USDA's weekly export sales, U.S. jobless claims, U.S. fourth-quarter GDP, January durable goods orders and an update of the U.S. Drought Monitor are all set for release at 7:30 a.m. CST. An index of U.S. pending home sales is due out at 9 a.m., followed by U.S. natural gas inventory at 9:30 a.m. Traders will keep examining the latest weather forecasts and watch for any new export sales that may emerge. Weather Dry conditions will remain in effect across most primary crop areas Thursday. Precipitation will be confined to snow in portions of the far western Plains and Northwest and rain along the Texas coast. Temperatures will be seasonal north and central and seasonal to below normal south.
| Rural Advocate News | Wednesday February 24, 2021 |
Senate Confirms Vilsack as Ag Secretary The Senate Tuesday overwhelming approved the nomination of Tom Vilsack as Agriculture Secretary. The Senate voted 92 to seven to approve the nomination via a roll call vote, sending Vilsack back to the Department of Agriculture's top position. Vilsack returns to the agency after serving as Agriculture Secretary during the Obama administration. The Senate allowed for 20 minutes of debate, but opted for short statements from Senate Agriculture Committee leadership before calling for the vote. Senate Agriculture Chair Debbie Stabenow, a Michigan Democrat, says, “After an overwhelmingly bipartisan vote, Secretary Vilsack can now get to work.” Noting Vilsack is “uniquely qualified” to head up the USDA, having served there previously, National Association of Wheat Growers CEO Chandley Goule stated Vilsack "has an exceptional understanding of agricultural and rural issues." American Farm Bureau Federation President Zippy Duvall says, "His strong track record of leadership and previous experience at USDA will serve rural America well.” ************************************************************************************ Organic Trade Association Hosts Virtual DC Fly-in Organic agriculture representatives met with lawmakers Tuesday through a virtual fly-in. The Organic Trade Association hosted the event, continuing Wednesday, to brief the new administration on the challenges the organic sector faces. The issues from more than 20 organic producers from a dozen states are expansive and including ensuring continuous improvement and accountability in organic standards. Industry advocates also expressed the need for increasing funding for organic research, providing organic farmers, businesses and workers with adequate support and protection to help deal with COVID-19 and restoring full funding to help organic farmers cover their certification fees. The industry also seeks investment in federal programs to support farmers in successfully transitioning to, and staying in, organic production. Organic Trade Association Vice President of Government Affairs Megan DeBates says, “There are plenty of spaces now where our ‘asks’ can come, in the next farm bill, climate change policy, COVID recovery, so this is a great time to be presenting the organic case.” ************************************************************************************ Farm Groups Embrace New EPA Position on SREs Farm and biofuel groups welcome the recent Environmental Protection Agency announcement supporting the Tenth Circuit Court’s January 2020 decision regarding small refinery waivers. EPA states that it “agrees with the court that the exemption was intended to operate as a temporary measure and, consistent with that Congressional purpose, the plain meaning of the word ‘extension’ refers to continuing the status of an exemption that is already in existence.” The four petitioners in the case—the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol and National Farmers Union, welcomed the announcement in a statement. The groups say, “This announcement marks a major step forward by the Biden administration to restore the integrity of the Renewable Fuel Standard.” Last month, the U.S. Supreme Court granted a request from two refiners to review the Tenth Circuit case, even though EPA did not ask the high court to examine the ruling. Arguments before the Supreme Court are expected in the spring. ************************************************************************************ Ag Energy Coalition Releases 2021 Policy Recommendations The Agriculture Energy Coalition recently announced its 2021 policy recommendations. Those priorities include providing the Department of Agriculture Rural Energy for American program at least $2.5 billion over ten years, including a financial infusion upfront and Increase to 90 percent REAP Loan Guarantee for any loan amount under $1 million. They also seek to extend clean energy tax credits, provide USDA with additional rural development funding and authorize and modernize the Biorefinery Assistance, Renewable Chemical and Biobased Product Manufacturing Program. The recommendations also include modernizing the Advanced Biofuel Payment Program, increase funding for the BioPreferred program, and make sustainable aviation fuels a priority for USDA. The coalition says USDA Should prioritize the role of biomass in forest management and wildfire risk reduction. Finally, the group asks USDA to consider using the Commodity Credit Corporation to support low carbon renewable energy innovation. The Agriculture Energy Coalition represents a diverse set of interests in agriculture and renewable energy, such as farmers, advanced biofuel and bio-based manufacturers, clean-tech, rural lenders, and environmental NGOs. ************************************************************************************ PLC to Hold Legislative Conference Virtually Next Month The Public Lands Council Tuesday announced their 2021 Legislative Conference is being held virtually March 23-25, 2021. PLC volunteer leaders, staff, and affiliates will host legislative strategy sessions and workshops on how to successfully advocate the livestock industry in our nation's capital. Attendees will hear from Members of Congress, policy experts, scientists, and other industry professionals who are dedicated to Western lands, waters, and perspectives. This also gives public lands ranchers the opportunity to catch up, after a busy start to the year. PLC President Niels Hansen says, “Even though we are meeting virtually this year, all of these things are still a focus of our Legislative Conference.” Panel discussions will focus on how grazing facilitates opportunities for other multiple uses, how permittees help protect open spaces from conversion, reduce the risk of catastrophic wildfire, and promote biodiversity. Registration for the event is free and is available on the Public Lands Council website, publiclandscouncil.org. ************************************************************************************ Still Time to Be Counted in the 2020 Local Food Marketing Practices Survey Farmers and ranchers still have time to respond to their 2020 Local Food Marketing Practices Survey. The Department of Agriculture's National Agricultural Statistics Service will continue to accept responses through April to ensure an accurate picture of U.S. local and regional food systems. The 2020 Local Food Marketing Practices Survey is part of the Census of Agriculture program and required by federal law. These federal laws require producers to respond and USDA to keep identities and answers confidential. Over the next several weeks, NASS will follow-up with additional mailings and phone calls to farmers and ranchers who have not yet responded. Producers are encouraged to complete their questionnaire online at www.agcounts.usda.gov, by mail, or phone as soon as possible. All information collected will be used for statistical purposes only and published on the NASS website in aggregate form this November. To learn more about NASS and the Local Foods Marketing Practices Survey, visit www.nass.usda.gov.
| Rural Advocate News | Wednesday February 24, 2021 |
Wednesday Watch List Markets Ongoing concerns of too much rain in central Brazil and not enough in Argentina keep traders checking the latest weather forecasts Wednesday. At 9 a.m. CST, U.S. new home sales for January will be released, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m. Fed Chairman Jerome Powell speaks to the U.S. House of Representatives Wednesday morning and may offer more clues about where monetary policy is headed. Weather Wednesday will be dry across most primary crop areas. A few snow showers will cross the northern tier. Temperatures will be seasonal to above normal, allowing for more snow melt and recovery from the harsh mid-February cold wave.
| Rural Advocate News | Tuesday February 23, 2021 |
Biden EPA Supports 10th Circuit Court’s Decision on SREs The Biden Administration handed a major victory to the corn ethanol industry. The EPA says it agrees with last year’s ruling by the Tenth U.S. Circuit Court of Appeals that rejected the Trump EPA’s retroactive waivers to oil refiners from the Renewable Fuel Standard. The Biden EPA says the Tenth Circuit ruling “better reflects” the law and Congress’s intent in establishing the RFS. Ethanol groups that filed suit against the Trump EPA hailed the EPA’s reversal under the new administration, which did not file a brief with the Supreme Court by Monday’s deadline, backing the earlier EPA’s position. Small refiners appealed the Tenth Circuit ruling, and the Supreme Court agreed to hear the case, though it’s unclear what impact the latest development might have on the case going forward. Renewable Fuels Association’s CEO Geoff Cooper issued a statement, calling the announcement “a giant step forward” to restore the integrity to the RFS. The RFA and Growth Energy both agreed with EPA’s finding that the small refinery exemption is a temporary measure intended for true economic harm from compliance. The lower court had agreed that only previously existing exemptions could be extended. The RFA estimates that more than four billion gallons of ethanol demand were lost to dozens of Trump EPA RFS waivers. ********************************************************************************************** Trade Policy will be a Big Topic on Thursday Politico says trade policy will move front-and-center this week as the Senate Finance Committee considers Biden’s nominations for the U.S. Trade Representative and the number two Treasury official. Wally Adeyemo (Ah-dah-YAY-moh) is the nominee for Deputy Treasury Secretary, and Katherine Tai is the USTR nominee. How the Biden Administration will handle China in the wake of a trade war will be a key issue for both nominees. As the nation’s top trade negotiator, Tai would be responsible for reviewing the tariffs that Donald Trump put into effect on China and other nations. She would also be responsible for the Phase One Trade Deal that China has yet to live up to. Adeyemo will help lead the administration’s review of sanctions on Chinese leaders and firms that Trump put in place because of Beijing’s human rights abuses. Both nominees will likely take a tough rhetorical stance on China’s trade practices and abuses without making concrete promises that would limit future policy options. That will fall in with Biden’s promise to review Trump’s tariffs on China and other nations before taking further action. ********************************************************************************************** USDA Forecasting Higher Production in 2021 The USDA sees more corn and soybean production ahead this year. A DTN report says the USDA’s initial Grains and Oilseeds Outlook released last week includes a rise in both planted acres and the yield forecast. The agency says corn production will be 15.2 billion bushels for the 2021-2022 crop, while soybean production is forecast at 4.5 billion bushels. Higher demand is in the forecast for both crops, which will keep the year’s ending stocks lower, especially in soybeans. USDA released the Grains and Oilseeds Outlook at its Agricultural Outlook Forum. USDA says farmers will plant 92 million acres of corn. The yield projection is 179.5 bushels per acre, which will make the yield total of 15.2 billion bushels. The average corn price will drop by ten cents to $4.20 a bushel. USDA says farmers will plant 90 million acres of soybeans, up 6.9 million from last year. The soybean projection of 4.5 billion bushels is nine percent higher than the previous marketing year. Ending stocks are projecting to be 145 million bushels. The season-average farm price will be $11.25 a bushel. The wheat production forecast for 2021-2022 is 1.827 billion bushels, almost unchanged from the previous year. Total acreage will be 45 million acres, with a national average yield of 49.1 bushels per acre and a higher farm-gate price of $5.50 per bushel. ********************************************************************************************** Ag Climate Alliance Expands and Makes Policy Recommendations The Food and Agriculture Climate Alliance announced its membership is expanding as it puts together new policy working groups. Last year, the Alliance made more than 40 recommendations on how agriculture can help mitigate climate change and the new groups will focus on developing a set of more-specific policy proposals. The eight founding member organizations of the Alliance recently welcomed 14 new groups to the Steering Committee. They include the American Seed Trade Association, American Sugar Alliance, Association of Equipment Manufacturers, and many more. Congress and the Biden Administration have expressed high levels of interest in the previously released FACA recommendations and requested additional guidance on achieving the goals laid out in the report released last November. The groups are working on producing more detailed recommendations on the carbon bank concept, tax credits, and other incentives, as well as climate research. “We are encouraged that leaders in both the House and Senate are requesting more detailed guidance to achieve FACA’s climate goals and recommendations,” says AFBF President Zippy Duvall. “We also welcome the 34 new members of FACA who represent farmers, agribusinesses, state governments, and environmental advocates.” ********************************************************************************************** United Fresh Releases 2020 Fourth Quarter Report Fresh produce continues its steady growth at retail, with increased sales for fruits and vegetables during the fourth quarter of 2020. That’s according to a new report on United Fresh, detailing the fourth quarter of last year and the 2020 year-end report. Among the fourth quarter highlights, both fruits and vegetables continued to grow as sales surged across categories driven by consumers making more shopping trips and spending more during those trips. Total fruit sales generated $7.3 billion in the last quarter of 2020, representing 7.7 percent growth over the previous year. Vegetable dollar sales grew 14 percent during the quarter, reaching $8.8 billion. Some of the key numbers from the Year-End report show produce departments generating $7.1 billion in 2020, accounting for 33 percent of total fresh sales, second only to the meat department. Total fruit sales in the U.S. reached $33.7 billion and were 14.4 percent higher than the previous year. Apples, grapes, and bananas ranked as the top three categories in sales. Vegetable sales reached a new high of $35.8 billion and were 14 percent higher than in 2019. Pre-packed salads, tomatoes, and potatoes were the top three categories in sales. *********************************************************************************************** Dry Weather Concerns in South America Continue The corn and soybean harvest in South America continues to accelerate, and as the planting window for the second-corn crop opens, temperature and precipitation patterns become more important. Spotty showers in parts of Brazil are slowing down harvest and delaying the second-corn crop planting efforts. Drier weather in southern Brazil and Argentina has been more favorable for harvest. Weather Trends 360 says the prospect for dry weather will continue into March, which isn’t optimistic for the immature crops and the second-corn crop plants. In central and western Brazil, spotty showers are causing harvest delays as producers dodge hit-or-miss showers in their fields. Late planting of the second-corn crop means a risk of the plants entering the critical pollination period as the rainy season in Brazil ends, which puts the yield at risk. Overall, the southern third of Brazil will be stuck in a dry trend through next month. Dry and hot conditions will cause soil moisture to be at a deficit across much of the region, especially in Argentina.
| Rural Advocate News | Tuesday February 23, 2021 |
Washington Insider: Growing Snarl in Global Shipping Bloomberg is reporting this week that an “ongoing surge” in the cost of shipping goods around the world is prompting manufacturers and their customers to search for new arrangements of many kinds. The report says that exporters, importers and their agents are considering buying their own shipping containers and chartering vessels to avoid the sky-high costs and delays of existing services. Most of the 25 million containers in global use are owned or leased by about a dozen ocean carriers including Copenhagen-based AP Moller-Maersk A/S and China's Cosco Shipping Holdings Co. The steel boxes are still scarce on routes from China, Bloomberg says, and reports that exporters in Asia are complaining that rates to move freight to Europe or the U.S. jumped fivefold in the past year. One large maker of toys, such as Sea-Monkeys, says some buyers are deferring shipments until prices cool down. If it persists, the crunch threatens to dim hopes of a smooth recovery from the world economy's pandemic slump, Bloomberg asserts. While a boom in demand for work-from-home technology and medical equipment has fueled a sharp rebound in trade, pressures on the supply side are straining inventories and weighing on balance sheets. “We still have a backlog that's the highest we've had in our history,” Clarence Smith, chairman of 135-year-old Haverty Furniture Cos. of Atlanta, said on a conference call last week. “We're paying a premium to get the product to make sure we can serve our customers” and “we are increasing prices.” A 2016 paper by the Federal Reserve Bank of Kansas City said “a 15% increase in shipping costs leads to a 0.10 percentage point increase in core inflation after one year.” In the U.S., imported goods account for about 12% of gross domestic product and most arrive by sea. Because U.S. import price indexes don't include information about cargo rates, “shipping cost pressures act as an additional, but often overlooked,” channel for price pressure the Fed paper said. Germany's Schwarz Group – one of the world's biggest supermarket operators – recently considered hiring whole ships to transport goods, according to Hong Kong-based executive Bjoern Lindner. “All of my peers in the industry are scrambling for capacity” and “we have to be creative,” he said. Brian Sondey, chief executive of container leasing firm Triton International Ltd. of Hamilton, Bermuda, said some shippers of cargo are looking to buy their own boxes and “finding that somehow it's a net lower price.” “We've seen some interest in people like the Amazons of the world to start maybe owning some of their own containers because they get charged by the shipping lines when they hold on to containers longer than they are supposed to,” Sondey said on a conference call last week. In the meantime, the container carriers are “pulling out all stops” to meet the sustained high demand, said John Butler, CEO of the World Shipping Council, a group representing the liner industry. “All vessels are sailing, all available container equipment is being used, carriers are setting up new inland depots to speed up trucking turn-time operations and doing their best to keep customers informed in an extremely unpredictable situation,” he said. Some of supply pressure may ease in coming months, given container throughput at Shanghai Port increased by more than 20% during the Lunar New Year holiday compared with a year ago, and throughput at Ningbo Zhoushan Port rose about 29%, Xinhua reported, citing data from from the China Ports & Harbours Association. Still, the longer shipping costs remain elevated, the more the question lingers of whether they'll start to show up in the price of consumer goods. Toymaker Dave Cave, who runs Hong Kong-based Dragon-I Toys – one of the world's biggest manufacturers of toy dinosaurs and whose products include aquatic pets called Sea-Monkeys and Chatimal the Talking Hamster – said it's not worth shipping some toys given the tight margins already in the industry. He warns that unless conditions improve, retailers may raise their prices. “If nothing changes between now and the end of May, everyone who is shipping will land products at a much higher price than the actual products already in the store,” he said in an interview. Some of Cave's clients are deferring shipments until April on hopes that conditions improve. “Never, ever, ever has a container price ever been more than 20% or 30% up or down, never. To be 500% up, this is something new to everybody.” At this stage, though, many economists remain sanguine about the inflation threat and don't expect shipping costs to materially dent shopping baskets in the U.S. and Europe. “Ultimately, whether such costs can be passed on to consumers depends on the strength of consumer demand, which is more related to fiscal and monetary policy in the U.S. and Europe,” said Helen Qiao, chief Greater China economist at Bank of America. So, we will see. Rebuilding links between participants in the global trading system likely will be subject to many types of adjustments – trends producers should watch closely as the enormous global system readjusts, Washington Insider believes.
| Rural Advocate News | Tuesday February 23, 2021 |
USDA Changes Definition of 'Agricultural Products' in Trade Data USDA will shift its definition of “agricultural products” in terms of U.S. export data in the January 2021 trade data to be released March 5. The change will adopt the WTO definition of “agricultural products” to include ethanol, distilled spirits, and tobacco products. Those products are not currently considered ag products under USDA's current definition. The change will put the USDA numbers on agricultural products in line with the Office of the U.S. Trade Representative (USTR). USDA's Foreign Agricultural Service is updating its historical datasets for the March 5 change and said it would “make data available under both definitions in its Global Agricultural Trade System (GATS) database.”
| Rural Advocate News | Tuesday February 23, 2021 |
EPA Now Supports 10th Circuit Court Small Refinery Exemption Decision EPA on Monday announced they have taken a new position on small refinery exemptions (SREs), saying that after “careful consideration” that they support the 10th Circuit Court of Appeals ruling in the case of Renewable Fuels Association (RFA) vs. EPA. “EPA supports that court's interpretation of the renewable fuel standard (RFS) small-refinery provisions,” the agency said in a release. “This conclusion, prompted by a detailed review following the Supreme Court's grant of certiorari in the case, represents a change from EPA's position before the 10th Circuit. The change reflects the Agency's considered assessment that the 10th Circuit's reasoning better reflects the statutory text and structure, as well as Congress's intent in establishing the RFS program.” The 10th Circuit in January 2020 vacated and remanded three EPA decisions to grant SREs for the 2016 and 2017 compliance years, holding that a “small refinery's position can be granted only if the refinery satisfies two conditions,” EPA noted, those being that the refinery had to demonstrate an existing exemption and they have to demonstrate disproportionate economic hardship caused by RFS compliance. On Jan. 8, 2021, the U.S. Supreme Court agreed to review the 10th Circuit court decision at the request of the small refineries affected by the decision. “After further, careful review of the RFA Decision following the change of Administration, EPA has reevaluated the statutory text and now agrees with the 10th Circuit's reading” of the Clean Air Act section which said that “an exemption must exist for EPA to be able to 'extend' it,” the agency said. “EPA agrees with the court that the exemption was intended to operate as a temporary measure and, consistent with that congressional purpose, the plain meaning of the word 'extension' refers to continuing the status of an exemption that is already in existence.”
| Rural Advocate News | Tuesday February 23, 2021 |
Tuesday Watch List Markets Other than an index of U.S. consumer confidence due out at 9 a.m. CST, there are no official reports on Tuesday's docket. Federal Reserve Chairman Jerome Powell will testify before the U.S. Senate Banking Committee Tuesday morning and offer an assessment of the economy. Traders will check the latest weather forecasts and watch for any news of export sales. Weather Tuesday will be mainly dry and mild across the primary crop areas. This will allow for snow melt and recovery from the harsh cold and snow of the past two weeks. Snow and cold will be confined to the far northern Plain and portions of the Canadian Prairies.
| Rural Advocate News | Monday February 22, 2021 |
RFS Integrity Act Introduced in the House Democrat Angie Craig of Minnesota and Republican Dusty Johnson of South Dakota introduced the Renewable Fuel Standard Integrity Act into the House of Representatives last week. The goal of the legislation is to reduce the secrecy currently surrounding the small refinery exemption process and bring more certainty into the renewable fuel marketplace. “We applaud the introduction of the RFS Integrity Act and the strong bipartisan effort to restore integrity and transparency to the Renewable Fuel Standard,” says Growth Energy CEO Emily Skor. “The intent of the RFS is to blend more biofuels into our nation’s transportation fuel supply every year, not to have oil companies use questionable tactics to delay and avoid their blending obligations.” She says that creates tremendous amounts of uncertainty for farmers, biofuel producers, and the entire fuel supply chain. The Environmental Protection Agency doesn’t impose a clear deadline for submitting a request for an SRE. If enacted, the RFS Integrity Act would set an annual deadline of June 1 for refineries to submit SRE petitions. It would also bring greater transparency to SREs by no longer excluding the refinery’s name, the number of exempted gallons requested, and the compliance years requested from public disclosure. ********************************************************************************************** Ethanol Production Drops to Lowest Level in Five Years During the week ending on February 12, the Energy Information Administration announced that ethanol production dropped to its lowest level in five months while stockpiles grew. The EIA report says that ethanol production fell to 911,000 barrels per day, down from 937,000 barrels a day during the prior week. That’s the lowest production level since late September. A Successful Farming report says the Midwest, which produces the most ethanol of any region in the country, saw its production drop to 868,000 barrels a day. That’s a drop from the 895,000 per day from the previous week and the lowest output level since late September. The East Coast and Gulf Coast regions stayed at an average of 12,000 barrels per day, while the Rocky Mountain and West Coast production levels were unchanged at 9,000 barrels per day, on average, according to the EIA. Stockpiles increased to 24.297 million barrels in the seven days ending on February 12. In other news the ethanol industry won’t like, the Environmental Protection Agency says that all 16 petitions from small refineries that would exempt them from meeting blending obligations under the Renewable Fuel Standard from 2020 are still pending. In total, 66 petitions that date back as far as 2011 are still pending. ********************************************************************************************** Biden Immigration Bill Introduced in Congress Senator Bob Menendez of New Jersey and Representative Linda Sanchez of California, both Democrats, introduced President Biden’s immigration proposal into their respective chambers. The Hagstrom Report says both members of Congress say the bill will “create an earned pathway to citizenship for all 11 million undocumented immigrants, providing Dreamers, Temporary Protective Status holders, and some farm workers with an expedited three-year path to citizenship.” It also gives all other undocumented immigrants who pass background checks and pay taxes an eight-year path to citizenship without fear of deportation. National Milk Producers Federation President and CEO Jim Mulhern praised everyone involved with moving the legislation forward. However, he says, “Reforms to the immigration system must include changes crucial for the dairy workforce.” Reforms the NMPF wants to see include extending legal protections to current workers and their families that they’ve earned and enables dairy farmers to use a guest worker program to supplement their domestic workforce when they need to. Democratic Representative Jim Costa of California is a co-sponsor of the legislation. “I want to see this pass for the hardworking immigrants that have an earned path to citizenship,” he says. “For too long, we have talked about reform without taking any serious action.” *********************************************************************************************** USDA Fills Key Leadership Positions The USDA announced the appointment of Gloria Montaño (Mon-TAHN-yoh) Greene as the Deputy Undersecretary for Farm Production and Conservation. Zach Ducheneaux (DOO-shu-know) is the new Farm Service Agency Administrator. Montaño Greene is a former Director of the Farm Service Agency in Arizona from 2014-2017, a position she was appointed to by then-President Obama. She led the implementation of the 2013 Farm Bill Programs across the state. Ducheneaux is the current Executive Director of the Intertribal Agriculture Council, the largest, longest-standing Native American agricultural organization in the U.S. The Council represents all Federally Recognized Tribes and serves 80,000 Native American producers. He also operates his family’s ranch on the Cheyenne River Sioux Reservation in north-central South Dakota with his brothers. “We are honored to have professionals of the caliber of Gloria and Zach join our team,” says Katharine Ferguson, Chief of Staff with the Office of the USDA Secretary. “With their leadership of USDA farm and conservation programs, we will create new market opportunities and streams of income for farmers, ranchers, and producers that address climate change and environmental challenges, strengthen local and regional food systems, and lead the world in food, fiber, and feed production for export.” ********************************************************************************************** USDA Clarifies Rules Regarding Buying and Selling Seeds from Other Countries The USDA recently finished a months-long investigation into thousands of reports from citizens who received unsolicited seed packages in the mail last year. The Animal and Plant Health Inspection Service found no evidence that someone was intentionally trying to harm U.S. agriculture with the shipments. APHIS did confirm that some of the seeds sent to the U.S. were unsolicited, but others were seeds that the recipients ordered, although the buyers didn’t know they were coming from a foreign country. Regardless, most shipments were illegal because they came into the country without a permit or phytosanitary certificate. “Plants and seeds for planting online from other countries can pose a significant risk to U.S. agriculture and natural resources because they can carry harmful insects and pathogens,” the APHIS Plant Protection and Quarantine Program says in a statement. “We’ve been working closely with e-commerce companies and other federal partners to stop the flow of illegal plant and seed shipments into the U.S.” The agency set up a new site to help in its efforts to facilitate the safe trade of plants and seeds through the e-commerce pathway. More information is available at www.aphis.usda.gov. ********************************************************************************************** USCA Wants Beef Imports Halted Because of FMD The U.S. Cattlemen’s Association wants beef imports from Namibia (Nah-ME-bee-ah) halted following reports of Foot-and-Mouth Disease outbreaks in the country. Namibia’s livestock industry is divided into two zones by what’s called the Veterinary Cordon Fence. North of the VCF is where the infections have taken place, while south of the fence is considered an FMD-free zone. However, the region’s buffalo populations are consistent carriers of FMD and can move freely in and out of the country, potentially contacting domestic cattle herds. The country’s elephant populations have also been known to damage the fence and allow wild animals to cross to either side. “Now, more than ever, we need to ensure there are strong health and safety standards in place within our food supply chain to guard against threats to our agriculture industry,” says USCA President Brooke Miller. “The U.S. hasn’t had an FMD outbreak for almost 100 years, but we continue to recklessly pursue trading relations with countries that have known outbreaks. We want this to be a prominent topic in the upcoming Senate and House Agriculture Committees.” USCA estimates that a U.S. outbreak of FMD would result in as much as $14 billion in losses. Not only would it hit farm income, but it would also affect consumers and international trade relations.
| Rural Advocate News | Monday February 22, 2021 |
Washington Insider: Challenging Trade Debate Emerges The Hill this week featured a warning in an article by Desmond Lachman – a resident fellow at the American Enterprise Institute. Lachman was formerly a deputy director in the International Monetary Fund's Policy Development and Review Department and the chief emerging market economic strategist at Salomon Smith Barney. He warns President Biden “not to repeat the trade policy mistakes made by the previous administration.” He argues that President Joe Biden inherited a U.S. and global economy in “much worse shape than did former President Donald Trump – and that he can ill-afford to repeat the same trade policy mistakes that the Trump administration made.” He worries especially about the worldwide drift to “protectionist policies that now threatens to be destructive to U.S. and global prosperity.” He says “it would be a gross understatement to say that Trump's trade policy was a dismal failure. Not only did it fail to eliminate the U.S. trade deficit and level the trade playing field with China as it repeatedly promised to do. It also managed to alienate our traditional trade allies in Europe and Japan, lose our economic influence in the Asian Pacific region by pulling out of the Trans-Pacific Partnership and abandon our country's traditional world economic leadership role,” Lachman says. He thinks a key economic policy mistake the Trump administration made was to view international trade as a zero-sum game and to take a “my way or the highway” approach to trade policy. This induced him to adopt an “America First” trade policy and to start a costly Chinese trade war on a unilateral rather than on a multilateral basis, Lachman says. It also induced him to undermine the World Trade Organization, to arbitrarily impose import tariffs on our allies on supposedly national security grounds and to eschew participation in multilateral trade agreements. Lachman criticizes “another cardinal trade policy mistake made by the former administration, which was not to realize that our trade deficit is determined fundamentally by the difference between our country's saving and investment levels.” Had it grasped this basic economic principle, it might have refrained from engaging in the large 2017 unfunded corporate tax cut which had the effect of causing us to “revisit the twin budget deficit and trade deficit problem of the Reagan years,” the commentary said. Lachman is especially worried that while the Biden administration has yet to articulate a coherent international trade policy, “it is far from clear that it will be making a clean break from Trump's trade policies and restoring the country's traditional role of promoting freer international trade.” He sees as a positive the Biden administration efforts to adopt a more multilateral and rules-based approach to trade than the Trump administration did in general and that it “wishes to restore the WTO's authority in particular.” Another encouraging sign is that President Biden has not ruled out the possibility that the United States might re-join the Trans-Pacific Partnership. He also approves that the new administration also appears to understand that our European trade allies share our concern about China's multiple unfair trade practices and that our leverage in trade negotiations with China would be enhanced if we cooperated with Europe. This is particularly the case considering that European trade with China now exceeds that of ours. On the negative side, Lachman worries that President Biden is pursuing a “Buy American” program that appears to follow the previous “America First” playbook. And he sees problems from the new administration's commitment to fast track a $1.9 trillion-dollar budget package “that is almost sure to create a twin deficit problem that would cause the dollar to rise on the back of higher U.S. interest rates caused by a more expansive budget policy.” With the world still in the grip of its worst post-war economic recession and with protectionist policies on the rise, the world very much needs U.S. international economic leadership to maintain an open international trade system. To provide that leadership, the U.S. will need to lead by example. That leadership will require repairing fences with our traditional European economic allies to facilitate greater international cooperation to ensure that all countries, including China, play by the rules of the game in their international trade policies. It will also require the Biden administration to “dial back on its protectionist tendencies and refrain from pursuing a reckless budget policy that threatens to exacerbate current international economic imbalances.” So, we will see. It is clear that the administration almost certainly will find itself challenged as it attempts to support economic recovery from the coronavirus without inflating its currency—and a strong debate is now underway about the implications of those threats. That debate should be watched very closely as new policies are considered and implemented, Washington Insider believes.
| Rural Advocate News | Monday February 22, 2021 |
US Ag Export Forecast Raised To New Record U.S. agriculture is now forecast to see record exports in Fiscal Year (FY) 2021 of $157 billion, up from a November forecast of $152 billion. Imports are also forecast at a record mark up $137.5 billion, up from $137 billion in USDA's November forecast. The two forecasts would result in U.S. agriculture registering a trade surplus of $19.5 billion, the biggest since a $21.1 billion surplus in FY 2017. For China, USDA forecasts their FY 2021 imports at $31.5 billion, up $4.5 billion from their November outlook, “due to strong first quarter shipments and surging sales, most notably of corn,” USDA said. “China is forecast to remain the largest U.S. agricultural market in FY 2021.” The resulting trade surplus for U.S. agriculture would be up $17 billion from the FY 2020 result, which was the smallest trade balance for U.S. agriculture since it was $2.1 billion in 1972.
| Rural Advocate News | Monday February 22, 2021 |
USDA, FDA Insist 'No Credible Evidence' COVID Is Transmitted Via Food Or Food Packaging There is “no credible evidence of food or food packaging associated with or as a likely source of viral transmission of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the virus causing COVID-19,” according to a statement issued by acting USDA Secretary Kevin Shea and acting FDA Commissioner Janet Woodcock. “While there are relatively few reports of the virus being detected on food and packaging, most studies focus primarily on the detection of the virus' genetic fingerprint rather than evidence of transmission of virus resulting in human infection,” the statement said. “Given that the number of virus particles that could be theoretically picked up by touching a surface would be very small and the amount needed for infection via oral inhalation would be very high, the chances of infection by touching the surface of food packaging or eating food is considered to be extremely low.” The agencies said they were sharing the information “based upon the best available information from scientific bodies across the globe, including a continued international consensus that the risk is exceedingly low for transmission of SARS-CoV-2 to humans via food and food packaging.” Further, the USDA/FDA statement indicated food products and food packaging has “not been attributed” as a transmission source via national or international surveillance systems. This comes as China has maintained that this can be a source of infection and a World Health Organization (WHO) team that investigated the situation in China indicated that further exam needs to be done on whether frozen foods and the cold supply chain are possible transmission methods.
| Rural Advocate News | Monday February 22, 2021 |
Monday Watch List Markets As usual, traders will be checking the latest weather forecasts and watching for any export sales news that might emerge Monday morning. An index of U.S. leading indicators will be released at 9 a.m. CST, followed by USDA's weekly report of grain export inspections at 10 a.m. Weather Monday features rain and snow in the eastern Midwest through the East Coast and Southeast. Dry conditions will be in place elsewhere along with notably milder temperatures.
| Rural Advocate News | Friday February 19, 2021 |
China Surpasses U.S., Becomes EU’s Biggest Trading Partner New data from the European Union puts China ahead of the United States as the EU’s biggest trading partner. A spokesperson from China’s Foreign Affairs Ministry calls the data “great news for both sides.” 2020 saw China-EU economic and trade ties grow stronger against the COVID-19 pandemic. More than 60 percent of EU companies in China are ready to increase investment, according to the latest survey by the EU Chamber of Commerce in China. At the end of last year, China and the EU announced the conclusion of negations on a China-EU investment agreement that elevates relations and cooperation between the two. China claims that for mutual investment, the agreement means wider market access, better business environment and a brighter prospect of cooperation. In 2020, EU imports from China increased 5.6 percent, while exports increased 2.2 percent. Although the US and the UK remain the EU's largest export markets, trade with both countries dropped significantly. ************************************************************************************ USDA Announces Dealer Statutory Trust to Protect Livestock Sellers The Department of Agriculture this week announced a new Dealer Statutory Trust to Protect Livestock Sellers. The Consolidated Appropriations Act, signed in December, amended the Packers and Stockyards Act by adding language to establish a "Dealer Statutory Trust" for the benefit of unpaid cash sellers of livestock. Much like the existing packer and poultry trusts, the amendment requires livestock dealers to hold all livestock purchased. If livestock has been resold, the receivables or proceeds from such sale, in trust for the benefit of all unpaid cash sellers of livestock until full payment has been received by those sellers. Dealers whose average annual livestock purchases do not exceed $100,000 are exempt. Livestock sellers who do not receive timely payment from a dealer may file claims on the dealer's statutory trust. Livestock and Foreign Agriculture Subcommittee Chairman Jim Costa of California applauded the move. The Democrat states, "I am pleased that USDA has taken the necessary steps to put these protections in place for the benefit of livestock sellers throughout our country." ************************************************************************************ Farm Groups Submit Comment on Phosphate Duties Farm groups this week submitted comments to the U.S. International Trade Commission regarding duties on Russian and Moroccan imports of phosphate fertilizer. The groups include the American Soybean Association, the National Corn Growers Association and the National Cotton Council. The groups say, “countervailing duties on these imports will adversely impact the availability of phosphate fertilizer in the United States and adversely affect crop production and farmer livelihoods.” The comments are part of the USITC’s hearing on a petition from the Mosaic Company for the countervailing duties on Russian and Moroccan imports. Mosaic says the company’s survival depends on stopping unfairly subsidized imports. However, the farm groups say countervailing duties impact availability of phosphate fertilizers and lead to shortages. Additionally, the groups say the duties will reduce competition and choice available to farmers in the U.S. marketplace. The farm groups request that the USITC remove the countervailing duties. Phosphate fertilizers are widely used by corn, cotton, soybean, and other crop producers throughout the United States. ************************************************************************************ NPPC Applauds USDA For Extending COVID Vaccine Support Farm groups welcome plans by the Department of Agriculture to assist states in administering the COVID-19 vaccine. USDA's Animal and Plant Health Inspection Service this week announced it has deployed 119 employees to assist in several states, largely in Nevada and Oklahoma. The USDA employees are helping to vaccinate people at various rapid points of distribution, including mobile teams and pop-up clinics. Farm groups, such as the National Pork Producers Council, welcomed the news from USDA. NPPC says that, declared essential by the Department of Homeland Security, hog farmers, veterinarians, livestock haulers, harvest facility employees and other workers across the supply chain, play a vital role in food security and rural economies. This week, NPPC also launched a campaign, “You’re Essential, So It’s Essential,” to encourage U.S. pork industry workers to get vaccinated as soon as possible. visit nppc.org/essential to learn more about the NPPC vaccination campaign. ************************************************************************************ USB Sets 2022 Investment Directions Directors of the United Soybean Board this week met virtually to define strategies and goals for 2022 investments. Those priorities include strengthening soy's position in the U.S. and global marketplaces related to soybean meal, oil and sustainability. USB's financial stewardship and program development responsibilities include investing in projects to promote the sustainability of U.S. soy as a market differentiator domestically and to build new markets abroad. In addition, the soy checkoff funds education to enhance end-user awareness of soy products and research to strengthen the resilience of soybean production, improve meal quality and develop new uses for soybean oil. Nearly 500 proposals were submitted to achieve checkoff objectives in research education and promotion. The shared goal of all selected proposals is to strengthen U.S. soy's reputation and competitive advantage when it comes to nutrition, quality and sustainability. Between now and USB's next meeting in July, checkoff farmer-leaders will review proposals in detail to determine strategic fit ahead of making their final 2022 project portfolio recommendations. ************************************************************************************ CattleFax Cow-Calf Survey Announced CattleFax has introduced its annual Cow-Calf Survey. Information requested in the survey provides participants and the industry with valuable data regarding industry benchmarks and trends. Survey participants will receive a results summary packet, with useful benchmarking information that will allow managers and owners to evaluate their own operations. Items such as cow-calf profitability, tendencies of high and low return producers, regional data, and other valuable material are included. To receive the summary packet, a valid email address must be submitted. All individual results will be confidential and remain anonymous. By completing the survey and submitting a valid email address, participants will also be entered into a drawing to win a $700 CattleFax voucher. The credit can be used for any CattleFax memberships, registration fees for education seminars, including Corporate College and Risk Management Seminars, and/or registration fees for the annual Outlook and Strategies Session. The survey can be accessed by going to CattleFax.com. The deadline to complete the survey is February 22, 2021.
| Rural Advocate News | Friday February 19, 2021 |
Washington Insider: Retail Sales Surprise Bloomberg is reporting this week that U.S. retail sales surged in January “by the most in seven months, beating all estimates and suggesting fresh stimulus checks helped spur a rebound in household demand following a weak fourth quarter.” The value of overall sales increased 5.3% from the prior month after a 1% decline in December, the Department of Commerce (DOC) report said. “It was the first monthly gain since September. All major categories showed sharp advances,” DOC said. Ahead of the report, the median estimate in a Bloomberg survey of economists called for a 1.1% monthly gain in retail sales. A surge in COVID-19 cases curbed spending at year-end, but since then, virus cases have ebbed and states have started to ease some restrictions on businesses and activity. The ability to shop and eat out, paired with the latest round of $600 stimulus payments, helped drive spending increases across a variety of categories, Bloomberg said. The jump in retail sales could further embolden Republican opposition to President Biden's $1.9 trillion stimulus plan which many in the GOP already criticize as “too big,” Bloomberg said. Even so, Democrats are on track to narrowly pass the package without Republican votes – and the new retail sales data could also be held up as evidence of how critical relief payments are to the economy and jobs. The report shows that “when fiscal aid arrives to household balance sheets, it does get turned around fairly quickly and materializes in economic activity,” Michael Gapen, chief U.S. economist at Barclays Plc, said. With another stimulus package likely in March, “we should see a pretty rapid acceleration in demand and household spending as we move into the into the second quarter, which could be continued if vaccinations continue apace, and mobility gradually recovers over time,” Gapen said. Non-store retailers' sales, which includes online stores, rose 11%, the most in two years. Food services and drinking places rose 6.9% as restrictions eased at restaurants and bars across the country. Furniture stores, and electronics and appliance merchants also saw double-digit gains in the month. The so-called “control group” subset of sales, which excludes food services, car dealers, building-materials stores and gasoline stations, rose 6%, the largest gain since June. Bloomberg said its own economists reported that “The strength and composition of retail sales (specifically the tilt toward discretionary categories) is an encouraging signal that consumers' aggressive saving patterns from 2020 are starting to ease—a development which, if sustained, could unleash a torrent of pent-up demand in 2021.” The report noted that gas station receipts rose 4%, at least in part reflected higher fuel prices. The retail figures aren't adjusted for price changes, so sales also reflect changes in gasoline costs. At the end of January, the average nationwide price for a gallon of gasoline was $2.42 – roughly in line with pre-pandemic prices. Other data from the Labor Department showed producer prices increased 1.3% in January, the biggest gain in records dating back to 2009, driven by broad-based gains in categories including energy and food. The core measure, which excludes energy and food, jumped by 1.2% – also the most in records – over the prior month. Meanwhile, the core consumer price index – a key measure of prices paid by U.S. consumers – was unchanged in January for a second straight month, pointing to the pandemic's lingering restraint on inflation. A separate report from the Federal Reserve on Wednesday “showed manufacturing extended its recovery in early 2021. Output rose in January by more than forecast, though it remained 1.9% below the pre-pandemic level.” Bloomberg also noted that the National Association of Home Builders showed increased confidence among residential construction firms in February as the allure of low interest rates generated more prospective buyer traffic. Still, rising construction costs threaten to slow demand, Bloomberg warned. So, we will see. The declines in COVID-19 cases are clearly good news, as are the stronger retail markets. Still, the threats from the virus are very significant and efforts to test and vaccinate continue to be extremely important — key trends producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday February 19, 2021 |
Senators Push For COVID Vaccinations For Farm, Food Workers There needs to be a “swift vaccination of farm and food chain workers” as it is “imperative that these essential frontline workers be included in initial phases of vaccine distribution nationwide,” Senate Ag Committee Chair Debbie Stabenow, D-Mich., and Sen. Cory Booker, D-N.J., said in a letter to White House Coronavirus Response Coordinator Jeff Zients. The lawmakers lamented that states and other jurisdictions have excluded farm and food chain workers in their vaccine distribution plans. They also called for vaccines distributed through employers be done in consultation with union and worker representatives. “This must be done in order to both adequately ensure their health and safety while also guaranteeing the continuity of food production and distribution in the U.S.,” the lawmakers said.
| Rural Advocate News | Friday February 19, 2021 |
USDA's Meyer Outlines 2021 Acreage, Trade Prospects The USDA Outlook Forum is in virtual form this year, with USDA Chief Economist Seth Meyer laying out the economic landscape for the agricultural sector. He noted the rebuilding of the Chinese hog herd as a factor in markets, including corn and soybeans. For corn, Meyer detailed, “What we have seen, though, in China, and what has sparked this big import of corn has been the spread between internal prices for corn in China and what corn prices are elsewhere in the world.” He put the difference in price at round $150 per metric ton. He also said the tariff-rate quota (TRQ) will not be a limit on Chinese corn imports. For 2021 U.S. planted acreage, he said USDA sees corn planting at 92 million acres and soybeans at 90 million for a combined 182 million acres, a record. For wheat, Meyer said that USDA sees a “small rise” in wheat area for 2021 to 45 million acres. He also noted that winter wheat harvested area is a “question.” He also said USDA sees cotton plantings at 12 million. USDA sees season average prices for corn at $4.20 per bushel, soybeans at $11.25 per bushel and wheat at $5.50 per bushel in their respective 2021-22 marketing years, Meyer said, while the agency expects higher prices forecast compared with 2020 for live cattle at $115 per cwt., hogs at $50.50 per cwt., and broilers at 84.5 cents per pound. But to hit the price marks, he said there needs to be “robust domestic demand and solid exports.” Interestingly, Meyer commented on the Food Box program, noting a question is if USDA maintains the program. Overall U.S. agricultural exports in Fiscal Year (FY) are now seen at a record $157 billion against imports at a record $137.5 billion for a trade surplus of $19.5 billion. That would be $17 billion higher than FY 2020 and the biggest trade black ink since FY 2017 when it was $21.1 billion
| Rural Advocate News | Friday February 19, 2021 |
Friday Watch List Markets USDA's 2021 Ag Outlook Forum continues Friday with traders watching for the release of new-crop balance sheets and additional market comments. At 7:30 a.m. CST, USDA will release its weekly export sales report for dates that overlap China's New Year celebration. U.S. existing home sales for January are due out at 9 a.m., followed by USDA's monthly cattle on-feed report at 2 p.m. CST. Weather Most primary crop areas will be dry Friday. We'll also see milder temperatures as this week's bitter cold wave eases. Precipitation will focus in the eastern U.S. as rain and along the Rockies as snow. The Rockies snow system will move into the western Midwest Sunday.
| Rural Advocate News | Thursday February 18, 2021 |
Bipartisan Push Seeks More Farmers and Ranchers Eligible for PPP Loans Lawmakers seek clarified terms to ensure more farmers and ranchers are eligible for loans through the Paycheck Protection Program. The request was in a letter to the Treasury Department and Small Business Administration. Led by Representative Ron Kind and Senator Tammy Baldwin, Wisconsin Democrats, along with Republican Senator John Thune of South Dakota, the lawmakers say many farmers were falling through the cracks in when it was first created last year. Kind introduced legislation over the summer to increase the number of farmers eligible to receive a loan by allowing them to use gross income to calculate their loan award. The legislation was passed as part of the recent COVID-19 relief package. However, many farmers and ranchers are organized as partnerships or limited liability companies, which are taxed differently than other farm and ranch entities. These farmers have been unable to apply for loans under the new calculation because of the SBA’s interpretation of eligibility for partnerships or limited liability companies. ************************************************************************************ USDA Ready to Assist Farmers, Ranchers and Communities Affected by Winter Storms The Department of Agriculture Wednesday reminded farmers and ranchers of programs to assist them through the current winter storms. Acting Agriculture Secretary Kevin Shea says, “USDA is committed to getting help to producers and rural Americans impacted by the severe.” USDA offers several risk management and disaster assistance options to help producers recover after they are impacted by severe weather, including winter storms and extreme cold. Producers that signed up for Federal Crop Insurance or the Noninsured Crop Disaster Assistance Program who suffer losses are asked to report crop damage to their crop insurance agent or local FSA office, respectively, within 72 hours of damage discovery and follow up in writing within 15 days. Livestock and perennial crop producers often have more limited risk management options available, so there are several disaster programs for them. Those programs include the Livestock Indemnity Program and the Emergency Assistance for Livestock. Producers are encouraged to contact their local Farm Service Agency office for more information. ************************************************************************************ Grassley Calls on McCarthy to Visit Iowa to See Renewable Energy Senator Chuck Grassley this week invited Gina McCarthy to visit his home state to learn about renewable fuel production and overall sustainable energy strategies. The Iowa Republican says, "It would be a great opportunity for the Administration to learn just how resilient the middle of the country can be." McCarthy, former Environmental Protection Agency Administrator during the Obama administration, now serves as the White House National Climate Advisor for President Joe Biden. In 2009, Grassley invited McCarthy, who had never been to a farm before, to visit Iowa to learn about corn and soybean farming technology and see firsthand how Iowa farmers contribute to clean energy production. Since then, Iowa's agriculture and energy industry has continued to expand. Iowa now ranks second in the nation for wind energy production, leading the nation with the highest wind power share. In 2019, wind turbines in Iowa generated more electricity than the state's coal-fired power plants for the first time. ************************************************************************************ Corn Refiners Release Economic Impact Study A new study reveals the economic impact of the corn refining industry, featuring a $47 billion economic output in 2020. The Corn Refiners Association released the study this week, detailing the industry’s contributions to the U.S. economy in terms of sales, jobs, salaries, purchases, and taxes. The study finds the economic power of the corn wet-milling industry results in $3.3 billion in state and federal taxes, 167,700 total jobs, $10 billion in total wages and $47 billion in total economic output. John Bode, President and CEO of the Corn Refiners Association, says, “This report underscores the essential role America’s corn refiners play in our nation’s agricultural and economic value chain.” John Dunham and Associates completed the economic study. The study calculates the direct impact of the corn refining industry on jobs, wages, economic output and taxes at the national level. It also examines the economic impact on a state-by-state basis, as the association's member companies operate 25 plants in ten states. ************************************************************************************ EPA Commits to Strengthening Science Used in Chemical Risk Evaluations The Environmental Protection Agency this week announced the agency will refine its approach to selecting science used in chemical risk evaluations. Specifically, the agency will revamp its selection and review of scientific studies used to inform Toxic Substances Control Act chemical risk evaluations. The effort, the EPA says, is part of the agency's effort in continuing to act on the Biden-Harris Administration's commitment to making evidence-based decisions. EPA's ongoing effort to update its systematic review approach that was issued in 2018 is also part of EPA's broader efforts to review the first ten TSCA risk evaluations. This review will be done following executive orders and other directives provided by the Biden-Harris administration to ensure that all agency actions meet statutory obligations, be guided by the best available science, ensure the integrity of Federal decision-making, and protect human health and the environment. EPA expects to publish and take public comment on a TSCA systematic review protocol later this year. ************************************************************************************ Noble Research Institute Focuses on Regenerative Agriculture Noble Research Institute announced Wednesday that it will focus all of its operations on regenerative agriculture. The organization also will set its primary goal to regenerate millions of acres of degraded grazing lands across the United States. Noble will achieve the vision through its direct work with farmers and ranchers across the nation as they transition to and profitably maintain regenerative management of their lands. Steve Rhines, president and CEO of Noble, says, “Regenerative agriculture is the next step in the land stewardship journey.” Regenerative agriculture differs from both mainstream conventional and organic agriculture in that it does not focus on inputs, such as fertilizer. Instead, regenerative agriculture uses interactions among soil, plants, water and animals to help build resilience in the soil. Noble’s programming will center exclusively on regenerative ranching, which applies regenerative principles specifically to grazing lands. About 85% of U.S. grazing lands are unsuitable for producing human food crops, such as corn.
| Rural Advocate News | Thursday February 18, 2021 |
Washington Insider: Political Clash on Minimum Wage Bloomberg is reporting this week that the proposal to gradually raise the minimum wage to $15 by 2025 has triggered a fierce lobbying battle, pitting some powerful business groups such as the U.S. Chamber of Commerce against large labor unions and civil rights coalitions. These groups have been holding virtual meetings and mobilizing grassroots letter-writing and phone call blitzes to sway lawmakers, particularly moderates in both parties, as they consider attaching the wage increase to the larger pandemic relief package sought by President Biden. The report also thinks that the proposal is serving as a test of whether unions and other groups generally aligned with Democrats can push through a top issue for them now that the party narrowly controls both chambers of Congress and holds the White House. For the Chamber and some other large business groups, who in the past have had more ties to Republicans on policy, the debate will test their clout with the new Congress. Democrats and Senate Budget Committee Chairman Bernie Sanders, I-Vt., are intent on increasing the wage minimum. But how they get it across the finish line is in question. The House Education and Labor Committee approved the increase in its portion of the pandemic relief bill. But opposition from moderate Democrats in the Senate may doom any strategy to pass it using the reconciliation process, which only requires a simple majority. Sen. Joe Manchin, D-W.Va., has opposed a $15 minimum wage and suggested an increase to $11. Another crucial vote, Sen. Kyrsten Sinema, D-Ariz., said she doesn't support including the wage hike in a stimulus bill. Biden said during a news interview earlier this month that he doubted it would survive as part of the package. Along with the political realities, his reasoning included the additional complication that Senate reconciliation rules may not even allow it. The Senate parliamentarian hasn't made a ruling on that yet but a minimum wage hike could also be pushed as a standalone bill. Proponents of the hike such as the Service Employees International Union and the National Employment Law Project say the virus-driven economic downturn illustrates that a boost is necessary to help lift people out of poverty. Coalitions of companies, such as Business for a Fair Minimum Wage, argue that raising the wage helps business by reducing worker turnover and increasing productivity. Heavy hitters including Amazon.com Inc., have also thrown their weight behind support for the proposal, saying $15 “is the minimum that anyone in the U.S. should earn for an hour of labor.” “In this moment where front-line workers and essential workers put their lives on the line during this pandemic and are still having trouble making ends meet, it really shows how overdue this change is,” said Gaylynn Burroughs, senior policy counsel of the Leadership Conference on Civil and Human Rights, a coalition of more than 200 organizations. The $7.25 federal minimum wage has been in place for almost 12 years. “There's obviously lobbying going on in DC and we'll make our strongest case possible. But this isn't a fight that's going to be won inside the halls of Congress. This is about members of Congress hearing from their constituents,” said Judy Conti, the government affairs director at the National Employment Law Project. SEIU, which started the “Fight for 15” campaign in 2012, worked with its partners to place roughly 3,000 phone calls to members of Congress during the week the measure was introduced on Jan. 26. The Coalition on Human Needs, a collection of organizations including civil rights and religious groups, has generated more than 150,000 letters to House and Senate offices from individuals in support of raising the minimum. Deborah Weinstein, the group's executive director, said she will also be increasing virtual meetings on the Hill in the days ahead. Opponents of the boost, such as the American Farm Bureau Federation and the International Franchise Association, argue that a large nationwide wage increase would hinder economic recovery by spurring business closures, higher prices for consumers, and increased unemployment. “There's no reason Congress shouldn't discuss raising the minimum wage, we just think that the $15 number is a political number that's not based on a real economic analysis,” said Glenn Spencer, the senior vice president of the employment policy division at the Chamber. “Hopefully we'll find people who are a little more willing to get something done. Otherwise, we're back into that '15-or-bust' mentality which results in an increase of zero.” The National Restaurant Association activated its grassroots network and has already sent “tens of thousands” of messages to lawmakers' offices regarding the wage increase and another part of the proposal that would eventually eliminate the tip credit, said Sean Kennedy, the group's executive vice president for public affairs. He called it “one of our more successful” campaigns over the past five months. “This is a huge challenge for an industry that's on the ropes, and it will have the exact opposite impact of relief for us,” said Kennedy. So, we will see. This is an intense campaign, with many Democratic views involved. It also is one with high stakes that producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Thursday February 18, 2021 |
USDA Housing Reg Review Quickly Finished By OMB The Agriculture Department has announced an extension of eviction and foreclosure moratoriums on USDA Single Family Housing Direct and Guaranteed loans through June 30, 2021. The extension was part of a larger Biden administration initiative on federally connected housing. “USDA recognizes that the COVID-19 pandemic has triggered an almost unprecedented housing affordability crisis in the United States. That's why USDA is taking this important action today to extend relief to the hundreds of thousands of individuals and families holding USDA Single Family Housing loans,” USDA Deputy Under Secretary for Rural Development Justin Maxson said. The Office of Management and Budget (OMB) completed its review of a notice from USDA on relief for Single Family Housing Guaranteed Loan Program (SFHGLP) borrowers impacted by the COVID-19 pandemic under programs operated by the Rural Housing Service (RHS) at the agency. The notice was received by OMB on February 12, with the review showing as completed February 15 “consistent with change.”
| Rural Advocate News | Thursday February 18, 2021 |
Action Coming on Biden Trade, EPA Nominees The nomination of Katharine Tai to be U.S. Trade Representative may not see full action in the U.S. Senate until late March even though she is not a controversial nominee, according to Sen. Chuck Grassley, R-Iowa. Grassley formerly chaired the Senate Finance Committee which has responsibility for trade in the Senate and will be the prime panel conducting Tai's nomination hearing. As for the nomination of Michael Regan to be EPA administrator, Grassley said he expects the Senate to vote next week or the following week. Neither nominee is expected to have difficulty winning final Senate approval.
| Rural Advocate News | Thursday February 18, 2021 |
Thursday Watch List Markets USDA's 2021 Ag Outlook Forum kicks off two days of talks at 6 a.m. CST Thursday with 2021 planting estimates expected early. There is no weekly export sales report until Friday morning, but U.S. jobless claims, U.S. new housing starts for January and an update of the U.S. Drought Monitor will be out at 7:30 a.m. CST. The U.S. Energy Department will have natural gas inventories at 9:30 a.m., followed by other weekly energy inventories at 10:00 a.m., including ethanol. Weather Thursday will be dry with milder temperatures in the Plains and most of the Midwest. Rain, ice and snow are in store from the eastern Midwest to the Mid-Atlantic coast. Portions of southern Texas will also have mixed precipitation and continued very cold conditions for the region.
| Rural Advocate News | Wednesday February 17, 2021 |
Senates Sets Vote for Vilsack Confirmation The Senate will vote to confirm Tom Vilsack as Agriculture Secretary next week. The exact time is uncertain, but the Senate calendar has the vote planned for Tuesday, February 23. The Senate will debate the nomination for 20 minutes before voting, with the majority and minority parties receiving equal time. Expect smooth sailing for Vilsack, who breezed through the Senate Agriculture Committee nomination hearing earlier this month. If confirmed next week, Vilsack will rejoin the Department of Agriculture just a few days over a month since the Biden administration took over the White House. During his confirmation hearing, Vilsack stated the world and nation are different from his previous stint leading USDA. Vilsack says, "Today, the pandemic, racial justice and equity, and climate change must be our priorities." If confirmed, Vilsack will return to USDA after serving as Agriculture Secretary during the Obama administration, and most recently as President and CEO of the U.S. Dairy Export Council. ************************************************************************************ Philippines Continues Debate to Raise Pork Import Quota The Philippines’ government moved one step closer to expanding the quota for pork imports last week. Specifically, the government is proposing to raise the minimum access volume to 400,000 metric tons to address shortages and higher prices for the preferred protein. The current minimum access volume is 54,000 metric tons, and the country's initial proposal increased the figure to 164,000 metric tons. The proposal will need to be approved by a management committee before submitted to the Philippines President for approval, and then ratified by Congress. This latest proposal comes on the heels of a recent meeting between the National Pork Producers Council and the Philippines Ambassador to the U.S. NPPC has been working with the Philippines’ government for more than a year to negotiate an expansion of the quota and lower pork import tariffs. In a statement, the organization says, “NPPC welcomes the government’s proposal, as the Philippines holds tremendous market opportunities for U.S. pork exports.” ************************************************************************************ Students Set to Celebrate National FFA Week Next week, more than 760,000 FFA members across the country will share the story of agriculture as part of National FFA Week. National FFA Week always runs Saturday to Saturday and encompasses February 22, George Washington's birthday. This year, the week kicks off on February 20 and culminates on Saturday, February 27. The National FFA Board of Directors designated the weeklong tradition, which began in 1948, recognizing Washington's legacy as a farmer. During FFA Week, the six national FFA officers will connect virtually with chapters across the country. National FFA Week is also a time for alumni and supporters to advocate for agricultural education and FFA. Alumni and Supporters will celebrate Alumni Day on Tuesday, February 22, and on Thursday, February 25, the National FFA Foundation will celebrate Give FFA Day, a 24-hour campaign encouraging the public to support various needs impacting FFA members. Friday, February 26, all FFA members and supporters are encouraged to wear blue and show their FFA pride. ************************************************************************************ Baldwin to Chair Senate Ag Appropriations Subcommittee Senator Tammy Baldwin will chair the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies. Announced last week, the Wisconsin Democrat says, “I look forward to working with my colleagues on both sides of the aisle to support farmers, ranchers, and producers.” Senator Baldwin has served on the Senate Appropriations Committee since 2015, and she will also serve as a member on three other appropriation subcommittees in the Senate. Baldwin says she seeks to "build a stronger and more secure agriculture economy, and get the job done on rural economic development for communities that too often feel they are being left behind by Washington." In addition to serving on the Senate Appropriations Committee, Senator Baldwin serves on the Senate Committee on Health, Education, Labor and Pensions, and the Senate Committee on Commerce, Science, and Transportation. However, Baldwin is not a member of the Senate Agriculture Committee. ************************************************************************************ USDA Announces Monica Rainge as Deputy Assistant Secretary for Civil Rights The Department of Agriculture Tuesday announced Monica Armster Rainge as deputy assistant secretary for civil rights for the agency. Rainge is an agricultural lawyer and mediator. She has worked in the public and private agricultural sectors for more than 25 years. She recently served as the Director of Land Retention and Advocacy for the Federation of Southern Cooperatives-Land Assistance Fund. There, she led the development and management of outreach and technical assistance programs that support regional land retention and advocacy initiatives for socially disadvantaged farmers and ranchers. Rainge also directed the Federation's Regional Heirs Property and Mediation Center, which provides USDA-certified mediation services in Georgia, Mississippi and Louisiana. Katharine Ferguson, chief of staff in the office of the secretary, stated, “She has dedicated her career in law and advocacy to fighting for underserved and marginalized communities in food, agriculture and natural resources management.” Rainge will help USDA efforts to ensure equity across the Department. ************************************************************************************ Former U.S. Ambassador Gregg Doud Joins Aimpoint Research Aimpoint Research announced Tuesday Former U.S. Trade Ambassador Gregg Doud joined their team. Doud serves Aimpoint Research as its vice president of global situation awareness and chief economist. Doud most recently served as Chief Agricultural Negotiator in the Office of the U.S. Trade Representative and is one of the primary architects of the U.S.-China "Phase One" trade agreement. Aimpoint Research specializes in providing intelligence to the agri-food value chain, and Doud brings “an unparalleled global perspective and economic expertise to the team.” He will work closely with members of the Executive Intelligence Network and play a major role as the organization tackles its thought leadership priorities, including Farmer of the Future, Next Gen Consumer, Mobility of the Future, and more. Before his role with the U.S. Trade Representative, Doud served as President of the Commodity Markets Council, the leading trade association for commodity futures exchanges and their industry counterparts.
| Rural Advocate News | Wednesday February 17, 2021 |
Washington Insider: Little Guys Threaten Big Problem for Big Tech The New York Times reported this week about “a new threat to big tech.” It described legal threats large firms like Google are facing in antitrust cases from Europe's top competition enforcer, the Justice Department and attorneys general from more than 30 states and territories. However, it also described threats from numerous lawsuits from smaller firms. The report highlighted on a suit by the operator of a website called Sweepstakes Today and its claim that Google used its power over online advertising to “bleed his website dry.” In December, the firm sued Google, claiming “substantial” damages. The Times sees this case as potentially “one of a host of private antitrust lawsuits stemming from government cases against Google and Facebook.” Already, more than 10 suits echoing the federal and state cases have been filed against one or both of the Silicon Valley giants the Times says and notes that “many of them lean on evidence unearthed by the government investigations.” Last month, for example, a media company in West Virginia sued Google and Facebook, arguing that the tech companies had worked together to monopolize the digital ad market. Its lawyers extensively cited evidence from the government cases. Legal experts say many more such suits are likely this year, and could be a source of mounting legal pressure on the tech companies. Federal and state officials have filed several lawsuits against Google, saying it illegally maintained monopolies in search and the online advertising market. Also, suits filed against Facebook by the Federal Trade Commission and a group of states could seek to break the company up, the Times says. If successful, private lawsuits could be increasingly costly for Facebook and Google. The companies work with millions of advertisers and publishers every year and Google hosts apps from scores of developers, meaning there are many potential litigants, so the damages could be significant. “There's a fair amount of scrambling going on now and folks are trying to figure out what private suits might be successful and how to bring them,” said Joshua Davis, a professor at the University of San Francisco's law school. Julie Tarallo McAlister, a spokeswoman for Google, said that the company would defend itself against the claims. The private suits follow the government ones for a simple reason: Regulators have distinct advantages when it comes to obtaining evidence. Federal and state investigators can collect internal documents and interview executives before filing a suit. As a result, their complaints are filled with insider knowledge about the companies. Private individuals can seek that kind of evidence only after they file lawsuits. If the government cases succeed against Google or Facebook at trial, the win is likely to bolster the case for private lawsuits, experts told the Times. Lawyers could point to those victories as evidence the company broke the law and move quickly to their primary aim: obtaining monetary damages. The people bringing the cases against the tech giants include publishers, advertisers and users. The firm “Sweepstakes Today” aggregates prize contests from around the country. Its revenue comes from advertising that is sold partly by Google, according to Craig McDaniel's lawsuit, which is seeking class-action status. For years, the website generated about $150,000 in annual revenue and turned a profit, according to the complaint. But its revenue has dropped since 2012, a fall that the suit blames on Google's dominance in online advertising. The firm, with its public persona of “Mr. Sweepy,” said that its revenue had “dropped like a rock” and that it could go out of business. It argued that Google had also harmed its earnings by classifying the Mr. Sweepy site as a venue for online gambling, causing him to receive lower-quality ads. Other publishers that recently have filed antitrust complaints against Google include the lyrics website Genius — which sued Google in 2019 citing its use of Genius' lyrics data in search results, only to have its case dismissed — and the progressive magazine The Nation. Both are among the plaintiffs in a lawsuit filed by the law firm Boies Schiller Flexner that is seeking class-action status. Another prominent law firm, Berger Montague, has also filed a complaint against Google on behalf of publishers. The sweeping government claims against Facebook have helped persuade potential plaintiffs that they might have a winning case, even against huge companies like Google and Facebook. “I think it adds credibility to the allegations,” said Tina Wolfson, a California lawyer who filed a private lawsuit against Facebook. But lawyers bringing the lawsuits also face difficulties, including the large numbers of lawyers employed by Big Tech. These experts may try to force the cases to go to arbitration, where each individual claim would be weighed on its own rather than in one big group. And the law includes limitations on which private citizens can sue over antitrust violations. And, it may also be difficult to calculate payouts, especially when tech giants offer their products free to users making it difficult to calculate hypothetical losses. Still, the potential payouts are big, given the size of the tech companies. So, we will see. The big tech companies are extremely powerful competitors in nearly all economic sectors, and they likely also will be increasingly prominent targets for litigation — fights that could affect ag producers in numerous ways, and which should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday February 17, 2021 |
USDA Outlook Forum This Week USDA's Annual Outlook Forum will be held February 18-19, with the 97th version of the annual even virtual for the first time in its history. The theme is Building on Innovation: A Pathway to Resilience. It will be interesting to see if USDA-designate Tom Vilsack makes an appearance at the event since his confirmation vote in the U.S. Senate is now set for February 23. The first day of the forum will still focus on the overall U.S. agricultural economic and acreage prospects for the 2021/22 season, with the updated forecast for U.S. agricultural exports for Fiscal Year (FY) 2021 due out Thursday morning. The Friday focus will be on the detailed balance sheets for U.S. crops and livestock from USDA analysts, offering and update to the Agricultural Projections to 2030 data released late last fall. Plus, some veteran agriculture folks will open the Friday portion of the program, including Chuck Conner (National Council of Farmer Cooperatives), Zippy Duvall (American Farm Bureau Federation), Krysta Harden (U.S. Dairy Export Council) and Rob Larew (National Farmers Union) who will address “Hot Topics in Food and Agriculture.”
| Rural Advocate News | Wednesday February 17, 2021 |
International Trade Administration Sets Final Fertilizer Duties The International Trade Administration has published in the Federal Register final duty levels relative to its countervailing duty investigation into the import of phosphate fertilizers from Russia and Morocco. For Russia, the countervailing duty rates were set at 47.05% for product from Industrial Group Phosphorite LLC, 9.19% for Joint Stock Company Apatit and 17.20% for all others. For Morocco, the rate is 19.97% for OCP SA and for all others. There is still a determination to be made by the U.S. International Trade Commission (USITC). ITA said that if the ITC “issues a final affirmative injury determination, we will issue a CVD order and require a cash deposit of estimated countervailing duties for entries of subject merchandise.”
| Rural Advocate News | Wednesday February 17, 2021 |
Wednesday Watch List Markets Wednesday morning starts with a report of U.S. retail sales and producer prices for January at 7:30 a.m. CST, followed by U.S. industrial production at 8:15 a.m. At 1 p.m. CST, the Federal Reserve will release minutes of the latest FOMC meeting. Traders will keep a close eye on the latest weather forecasts and any export sales that develop. Due to this week's holiday schedule, the U.S. Energy Department's weekly inventory reports are moved to Thursday. Weather Bitter cold conditions will again cover the central U.S. Wednesday; however, some easing of the cold will be noted after record-breaking cold earlier this week. More ice storm conditions are likely in southeastern Texas. We'll also see snow from the Deep South north to the western Midwest.
| Rural Advocate News | Tuesday February 16, 2021 |
Washington Insider: New WTO Director General The New York Times is reporting this week that Ngozi Okonjo-Iweala, a Nigerian economist and former finance minister, is poised to become the first woman and first African to lead the World Trade Organization when it meets this week to consider her candidacy for director general. The appointment would remove a key obstacle to the functioning of the organization, which has been leaderless during a time of growing protectionism and global economic upheaval brought about by the pandemic. Still, the Times cautions that even with Dr. Okonjo-Iweala at the helm and the renewed support of the Biden administration, the WTO will face steep challenges surrounding its effectiveness as the world's trade arbiter. Trade negotiations, including efforts to restrain harmful subsidies such those given to the fishing industry, have dragged on without resolution. A key WTO unit that handles trade disputes, the “appellate body,” remains crippled after the Trump administration blocked appointments of new personnel. And there are deep divisions over whether rich and poor countries should receive different treatment under global rules. There is also growing consensus that the World Trade Organization has failed to police some of China's worst offenses, which many in the United States consider the biggest trade challenge today. And there is deep uncertainty about whether the organization can be overhauled to address those shortcomings. The Trump administration spent the last four years mostly criticizing or ignoring the WTO, ultimately weakening it by implementing its most prominent trade policies outside of its boundaries. Rather than work with the organization, President Trump took on trading partners like China and the European Union one-on-one. Trading partners argued that the Trump policies contravened WTO rules. President Joe Biden is likely to take a very different approach, the Times says. He criticized Trump for alienating allies and weakening the multilateral system and is expected to make the United States a more active player in international groups including the WTO. That includes supporting the organization's new leadership. On Feb. 5, the Biden administration announced it would support Dr. Okonjo-Iweala, reversing efforts by the Trump administration to block her candidacy. The former director general, Roberto Azevedo, announced last May that he would leave the job a year early and departed in August. While the vast majority of the organization's members supported Dr. Okonjo-Iweala to replace him, Trump administration officials, particularly the former U.S. Trade Representative Robert Lighthizer, did not. “The United States stands ready to engage in the next phase of the WTO process for reaching a consensus decision on the WTO director general,” the Office of the United States Trade Representative said earlier this month. “The Biden administration looks forward to working with a new WTO director general to find paths forward to achieve necessary substantive and procedural reform of the WTO.” Dr. Okonjo-Iweala, 66, is a development economist who spent 25 years working at the World Bank, including as managing director, and served two terms as Nigeria's finance minister, as well as the country's foreign affairs minister. A U.S. citizen who earned her doctorate from the Massachusetts Institute of Technology, she serves on the boards of Twitter and Standard Chartered and is an adviser to the Asian Infrastructure Investment Bank. Until recently she served on the board of GAVI, an international organization that distributes vaccines to poor countries. In her first stint as finance minister, she led negotiations that resulted in most of Nigeria's external debt being wiped out. Later, as coordinating minister of the economy in Nigeria — a powerful position created for her that has never been held before or since — many ministers took directives from her, the Times said. Dr. Okonjo-Iweala has said that her earliest priorities will be ensuring the free flow of vaccines, medicines and medical supplies to help deal with the pandemic and aid the global economic recovery. She has vowed to push for new trade agreements on fisheries and the e-commerce industry, and called for finding “solutions to the stalemate over dispute settlement.” She also said she would prioritize updating trade rules, encouraging member transparency. Following Dr. Okonjo-Iweala's appointment, one of the most pressing issues for the World Trade Organization will most likely be the paralysis of its system for settling trade disputes. The appellate body, a part of the organization that considers appeals by countries to WTO decisions on trade disputes, has been shuttered for over a year, after the Trump administration blocked new appointments to the panel that hears those arguments. While the Biden administration is unlikely to be as critical or confrontational as the Trump administration was about the issues plaguing the WTO, some Democrats share concerns about the organization's shortcomings, including whether the appellate body has unfairly constrained U.S. trade policy. And many officials in the Biden administration recognize the World Trade Organization has only limited power to push China to make economic reforms. So, we will see. Trade policy, along with new disputes likely to reach the WTO, are expected to continue to be among the new administration's most difficult challenges as it attempts to strengthen lagging U.S. economic sectors, especially those facing new technologies — along with those facing increasing competition for growing global food markets. These are trends producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday February 16, 2021 |
Taiwan to Hold Referendum On US Pork Produced With Ractopamine Public outrage regarding Taiwan's decision to allow imports of U.S. pork containing feed additive ractopamine has triggered a referendum on the issue to be held within the next six months. Some also believe it could harm prospects for President Tsai Ing-wen's independence-leaning Democratic Progressive Party in the local government elections next year. The China-friendly Kuomintang opposition party has led the effort against U.S. pork and hopes to capitalize on a coinciding drop in approval ratings for Tsai. The decision to allow pork from the U.S. produced with ractopamine was aimed at smoothing the way for free trade talks with the U.S. that have been paused since 2016.
| Rural Advocate News | Tuesday February 16, 2021 |
ITC Rules Blueberry Imports Not Causing Serious Injury To Domestic Producers The U.S. International Trade Commission ruled in a unanimous decision that blueberry imports “are not being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or threat of serious injury, to the domestic industry.” Chair Jason Kearns, Vice Chair Randolph Stayin, and Commissioners David Johanson, Rhonda Schmidtlein, and Amy Karpel voted in the negative, the agency said. The ruling in the Section 201 safeguard investigation ends the possibility the U.S. government will impose antidumping or anti-subsidy imposed by the U.S. Commerce Department. “We believed this data and testimony made a compelling case that safeguard measures were critical to the survival of our domestic farmers, and we are disappointed by the Commission's decision,” The American Blueberry Alliance said.
| Rural Advocate News | Tuesday February 16, 2021 |
Tuesday Watch List Markets After a day off for Presidents Day, trading in U.S. grain futures resumes Monday at 7 p.m. CST and traders will be examining the latest weather forecasts. Tuesday morning, traders will pause at 8 a.m. CST to see if USDA has a new export sale announcement. USDA's weekly report of grain inspections is set for 10 a.m., followed by the monthly soybean crush estimates from the National Oilseed Processors Association later Tuesday morning. USDA's Livestock, Dairy and Poultry outlook is due out at 11 a.m. CST. Weather Harsh Arctic cold will again cover much of the interior U.S. Tuesday. Temperatures continue well below normal. Significant stress and hazardous conditions for safety, travel and livestock remain in place. Snow forming in the western U.S. will move into the central states during midweek with additional winter storm issues.
| Rural Advocate News | Monday February 15, 2021 |
Farm Futures Survey Shows Farmers Planting More Corn in 2021 A new survey from Farm Futures shows that U.S. corn producers will increase their acreage by 4.1 percent compared to last year. The projected total is 94.7 million acres of corn this year. If farmers reach that number, that will put 2021 corn acreage at its third-highest amount over the past 75 years, trailing only 2012 at 97.3 million acres and 2013’s 95.4 million. A conservative trendline yield estimate of 177.4 bushels per acre would put corn production at 15.3 billion bushels. That would top the record of 15.1 million bushels harvested in 2016, which was the highest U.S. corn output ever recorded. While the January 2021 survey shows farmers favoring more corn planting this spring, planting intentions for both corn and soybeans are higher than 2020 levels. Plus, a good number of farmers plan to stick with their normal crop rotation. The Farm Futures survey shows farmers will increase soybean acres by 1.4 million, to 84.5 million. Uncertainty remains as farmers look ahead, ranging from dry South American weather forecasts to Chinese demand and pandemic-induced volatility. The survey says farmers are betting on a post-COVID recovery that boosts ethanol output and rising global export demand. ********************************************************************************************** Farm Bureau Disappointed in Blueberry Ruling The U.S. International Trade Commission says that fresh, chilled, or frozen blueberries are not being imported into the U.S. at a fast enough rate to cause injury to domestic producers. “As a result of today’s vote, the investigation will end, and the Commission won’t recommend a remedy to the President,” the USITC says in a release. The decision is a win for blueberry exporters that target the U.S., such as Mexico, Peru, Chile, Argentina, and Canada. The American Farm Bureau says the ITC failed to recognize the damage that certain imports are doing to American farmers. “Seasonal fruit and vegetable farmers face unfair competition from foreign growers, and today’s decision demonstrates that much work still needs to be done to address international trade imbalances,” says AFB President Zippy Duvall. “Importing blueberries during the U.S. harvest season leads to lower prices for domestic growers, who are price-takers and not price-makers. They need time to adjust their operations to increased import levels.” The Farm Bureau says it will continue to work with the USDA, U.S. Trade Representative, and the Department of Commerce to find meaningful assistance for America’s domestic blueberry industry and make sure U.S. farmers get a fair price for the food they grow. ********************************************************************************************** U.S. Cotton Farmers Will Plant Fewer Cotton Acres in 2021 U.S. cotton producers will plant 11.5 million acres this year, down over five percent from last year. Those figures come from the National Cotton Council’s 40th Annual Early Season Planting Intentions Survey. Upland cotton planting intentions are for 11.3 million acres, down 4.9 percent from 2020, while extra-long staple intentions of 161,000 acres represent a 21 percent decline. The detailed survey results were announced during the 2021 National Cotton Council’s Annual Meeting Virtual Live-Stream Event. “Planted acreage is just one of the factors that will determine supplies of cotton and cottonseed,” says Dr. Jody Campiche (Kam-PEE-chee), the NCC Vice President of Economics and Policy Analysis. “Ultimately, weather, insect pressures, and agronomic conditions will play a significant role in determining the crop size.” She also says that with abandonment assumed at 13.8 percent for the U.S., Cotton Belt harvested area totals 11.2 million acres. Using an average U.S. yield per harvested acre of 848 pounds generates a crop of 19.8 million bales. “History shows that U.S. farmers respond to relative prices when making planting decisions,” Campiche says. “Relative to the average futures prices during the first quarter of 2020, prices of all commodities were trading higher. For the 2021 crop year, corn, soybeans, wheat, and sorghum will provide more competition for cotton acres.” ************************************************************************************ Brazil Harvest Delays Mean More Opportunity for U.S Exports Brazil, the world’s number one soybean producer, is experiencing delays in its early soybean harvest. Yahoo Finance says that’s causing some of the biggest buyers like China to rely on rival exporters like the U.S. for a longer period than usual in early 2021. Continuing demand for American soybeans is speeding up the historic lowering of U.S. oilseeds. In turn, that may drive up soybean prices at a time of rising food inflation as countries keep tighter control of their supplies because of COVID-19. Brazil typically will harvest its soybeans in the first three months of the year, which slows demand for U.S. soybeans. However, that process was delayed by a drought last year that slowed planting progress and excessive rainfall at harvest. Brazil’s soybean shipments in January were 38 times lower than the year before at 49,500 tons, an amount that wouldn’t fill a single shipping vessel. At the same time, the U.S. inspected approximately 8.9 million tons for shipment in the same month, the highest number on record for January. Brazil’s supplies will likely normalize by March, but that could mean trouble at Brazilian ports. March and April soybeans may wind up competing with sugar exports for a finite amount of loading capacity. ********************************************************************************************** Economist Says Livestock Producers Need Insurance American livestock producers need the equivalent of crop insurance. The Hagstrom Report says American Farm Bureau Chief Economist John Newton made that statement in front of the recent Crop Insurance and Reinsurance Bureau Meeting. Newton says that in the 2023 Farm Bill, we will need “careful consideration as to how we are reaching the livestock sector with crop insurance-like policies.” Newton says there are ways the farm bill can written to help get crop insurance money more widely utilized. With the increasing frequency of bad weather, Newton says the farm bill can also be used to develop policies to address situations like the derecho windstorm in Iowa as well as hurricanes and after-harvest disasters. He also told attendees that dairy revenue policies have become a top ten crop insurance product because the crop insurance industry is very efficient in delivering those policies. Adequate labor, immigration reform, the Renewable Fuel Standard, possible changes to the Clean Water Rule that’s also known as Waters of the United States, regulatory reform, and the application of swampbuster rules are all Farm Bureau priorities. *********************************************************************************************** The Pace of U.S. Soybean Crush Stays High in January U.S. soybean processing plants likely had their third-largest monthly crush on record in January. Reuters says it’s also the largest-ever crush for the first month of the year. Industry analysts gave those predictions ahead of the National Oilseed Processors Association report due this week. NOPA members handle about 95 percent of all soybeans processed in the U.S. An average of nine analysts estimates combined to show processors crushed about 183.087 million bushels of soybeans last month. If that’s realized, it wouldn’t be much different than the 183.15 million bushels crushed in December and 3.5 percent higher than January of last year, when NOPA members processed 176.94 million bushels. Daily crushing rates over the past four months have been at historic highs, averaging roughly six million bushels a day. U.S. soybean supplies are forecast to shrink dramatically ahead of the next harvest. The USDA is projecting the tightest season-ending stocks in seven years and the tightest stocks-to-use ratio in history.
| Rural Advocate News | Friday February 12, 2021 |
Ag Credit Survey: Farm Economy Rebounds Sharply The agriculture economy rebounded in the fourth quarter of 2020, according to the latest Ag Credit Survey from the Kansas City Federal Reserve Bank. The average price of grains increased more than 20 percent from the previous quarter and reached six-year highs in December. Livestock prices, while still less than a year ago, also improved from lows reached earlier in the year. Government payments provided broad support through the year, and, together with recent price increases, the near-term outlook for the farm sector improved dramatically. The survey represents conditions in the Federal Reserve’s Tenth District, including Colorado, Missouri, Kansas, Nebraska, New Mexico, Oklahoma and Wyoming. A majority of bankers in the District indicated that farm income was higher than a year ago for the first time in eight years, boosting liquidity and loan repayment capacity and providing renewed support for farm real estate. Overall, agricultural conditions in the first quarter of 2021 in the Kansas City Fed region were poised to remain strong for the first time since 2013. ************************************************************************************ AFBF Provides Analysis on First Year of Phase One Agreement Another analysis of the Phase One Agreement shows China is behind on its commitments to U.S. agriculture. A Market Intel analysis by the American Farm Bureau Federation finds total exports of agricultural products covered under the agreement reached approximately $27.2 billion in 2020, an increase of $6.5 billion over 2017 levels. However, the export target of $33.4 billion was missed by over $6 billion. Despite missing the target for the 60 percent increase over 2017 levels, some specific products had banner years, including pork, poultry, beef, corn and soybeans. Farm Bureau economists say the missed target in 2020 also has implications for 2021, given that the Phase One Agreement is a two-year commitment. With 2020 exports of $27.2 billion to reach the two-year, $73 billion commitment, U.S. agricultural exports to China in 2021 will need to reach about $45.8 billion. This would be equivalent to a nearly 69 percent increase in exports over 2020 levels and a 120 percent increase over 2017. ************************************************************************************ Governor’s Biofuels Coalition Asks President Biden to Support Biofuels Sector The Governors' Biofuels Coalition is calling on President Joe Biden to ensure the future of the biofuels sector. The coalition includes governors from 22 states throughout the U.S., including Minnesota Governor Tim Walz, who led this week's action in a letter to President Biden. Walz states, "the once flourishing industry is now in jeopardy, threatened by trade wars, a litigious petroleum industry, and shrinking demand caused by the pandemic.” The letter noted that technological advances will significantly benefit the nation overall, but could have a devastating impact on the ethanol industry. The governor proposed two administrative actions to ease that transition, including an executive order banning the use of aromatics in gasoline, and adopting new Renewable Fuel Standard regulations. The letter says banning aromatics use would allow for the substitution of cleaner octane additives for aromatics, expanding the market for ethanol. Regarding the RFS, Walz cautioned that its regulations, particularly the waiver provision, have been manipulated and distorted “to keep the RFS from meeting its full potential.” ************************************************************************************ RFA Releases 2020 Reports on Ethanol, Distillers Grains Exports The Renewable Fuels Association this week released two reports summarizing 2020 U.S. ethanol and distillers grains export and import data. The reports show exports continue to be a major demand driver, as they approached $5 billion in 2020. The export/import trade summary provides data on U.S. ethanol exports, highlighting the fact that more than 1.3 billion gallons, ten percent of the ethanol produced in the U.S., were exported in 2020. While this is nine percent lower than 2019, it remains the fourth largest export volume in history. This ethanol, valued at $2.3 billion, was shipped to 90 countries on six continents. Canada was the top export destination, taking in nearly a quarter of U.S. ethanol exports, followed by Brazil and India. The second report covers U.S. exports of distillers grains, which totaled 10.9 million metric tons in 2020, a slight improvement on 2019 and the seventh straight year exceeding ten million metric tons. U.S. distillers grains exports had an aggregate value of $2.33 billion in 2020, the fifth-highest on record. ************************************************************************************ AEM Releases January Sales Report Farm tractor and combine unit sales start the year continuing growth in both the U.S. and Canada, according to the latest data from the Association of Equipment Manufacturers. AEM reports U.S. total farm tractor sales rose 24.7 percent in January compared to 2020, while U.S. combine sales grew a significant 76.8 percent. U.S. unit sales grew across all segments, with the biggest gains continuing in the small sub-40 horsepower segment, gaining 32.9 percent. Sales of 100-plus horsepower tractors were up 1.2 percent in January. For Canada, January monthly tractor sales also grew across all segments, with four-wheel-drive units leading the way for the second month in a row, up 118.2 percent. Total farm tractor sales up, as a result, 39 percent for January 2021 while combines delivered 52.2 percent more units. AEM’s Curt Blades commented, “While smaller units continue to lead the way, improved commodity prices and market conditions are leading to further gains in harvesters and bigger row crop units.” ************************************************************************************ COVID-19 Found in a Cougar at a Wild Animal Exhibitor in Texas The Department of Agriculture this week confirmed COVID-19 in a cougar at a wild animal exhibit in Texas. A tiger from the same facility was also confirmed positive for COVID-19. USDA says samples from several animals at the facility were taken after showing clinical signs, including coughing and wheezing. The animals are expected to fully recover. USDA suspects that the large cats acquired the infection from a person working as a team member or volunteer who was positive for COVID-19. Infections have been reported in a small number of animals worldwide, mostly in animals that had close contact with a person with COVID-19. USDA states, “We are still learning about SARS-CoV-2 in animals, but there is currently no evidence that animals play a significant role in spreading the virus to people.” However, it is important for people with suspected or confirmed COVID-19 to avoid contact with pets and other animals to protect them from possible infection.
| Rural Advocate News | Friday February 12, 2021 |
Washington Insider: Fed Chair Boosts Emphasis on Jobs The New York Times is reporting this week that although some prominent economists fret that the government might overdo its pandemic response and prompt prices to shoot higher, the nation's top inflation fighter disagrees — and believes that policymakers should stay focused on restoring full employment. “Given the number of people who have lost their jobs and the likelihood that some will struggle to find work in the post-pandemic economy, achieving and sustaining maximum employment will require more than supportive monetary policy,” Jerome Powell, the chair of the Federal Reserve, said in speech to the Economic Club of New York on Wednesday. “It will require a society-wide commitment,” he emphasized. Powell called policies that would bring the coronavirus pandemic to an end as soon as possible “paramount” and said both workers and businesses that had been disrupted by the crisis “are likely to need continued support.” Unemployment remains sharply elevated at 6.3%, up from 3.5% before the pandemic — but it “jumps to about 10% when adjusted for misclassified job statuses and recent dropouts from the work force,” Powell said. The pain has also been uneven. Employment has dropped just 4% for workers earning high wages but “a staggering 17%” for the bottom quartile of earners, Powell pointed out. Separately, he noted that “inflation has been much lower and more stable over the past three decades than in earlier times,” and later added that he did not expect it to accelerate in a sustained way coming out of the pandemic. Economists have often treated high employment and low inflation as conflicting goals, the Times says. Policies that foster strong demand and pull workers back into the labor market can push up wages as businesses compete for talent, prompting them to raise prices both because they need to pass along their rising costs and because eager consumers will accept such increases — at least in theory. But the arithmetic has shifted in recent decades, as annual inflation remained stuck below the Fed's 2% goal even during long periods of very low joblessness. President Biden and top Democrats are moving quickly to try to approve a $1.9 trillion pandemic relief package. But some economists, including former Treasury Secretary Lawrence H. Summers, have warned that the large package could touch off long-dormant price increases. Many Republican lawmakers have also cited that risk as a reason to oppose the package. Powell did not weigh in on the package specifically, but he did seem to rebut many of those concerns. He and his colleagues have been unusually vocal in pushing for more fiscal support for the economy throughout the coronavirus era with some saying the bigger risk is doing too little rather than doing too much. “I'm reluctant to get into what is clearly a very active debate,” Powell said when asked specifically about fiscal policy. But he added that “it is the essential tool for this situation.” The Fed's own policies are set to stimulate growth, the Times says. The central bank cut interest rates to near zero in March and has been buying about $120 billion in government-backed bonds per month. It aims to keep borrowing cheap and credit flowing to companies and households. Low rates are likely to stay for a “long time.” Powell and his colleagues said last year that they would worry only about too little employment, not about too much, and would shoot for periods of slightly higher inflation, aiming to average 2 percent over time. Officials have been clear that they plan to look past a pop in inflation that is expected to occur this year without lifting borrowing costs to cool off the economy. Inflation is measured by taking the cost of a basket of consumer goods and services and comparing it to the cost of the same products a year earlier. Prices that dropped sharply in some categories at the start of the pandemic — think plane tickets, hotel stays and work clothes — are returning to more normal levels. That means the measure will spike mechanically in relation to the depressed 2020 months. The Times insists that such a surge would not necessarily lead to “ever-rising prices.” While prices have shot up temporarily in recent decades, the report says that inflation has largely been benign and even a little bit too low for comfort across much of the developed world. “There's quite a lot of savings on people's balance sheets, there is monetary policy, there is fiscal policy — you could see strong spending growth, and there could be some upward pressure on prices there,” Powell said Wednesday. “Again though, my expectation would be that that will be neither large nor sustained.” Fed officials have gone so far as to suggest that if a large fiscal stimulus causes prices to rise sooner rather than later, that would be a welcome development. Central bankers can lift interest rates to control price increases, but it is less clear that they have the tools to reinvigorate price gains on their own. Charles Evans, president of the Federal Reserve Bank of Chicago, said during a speech last week, “It will be critical for monetary policymakers to look through temporary price increases and not even think about thinking about adjusting policy until the economic criteria we have laid out have been realized.” So, we will see. Inflation is still an enormous worry, and a strong political motivator — and will continue to be prominently debated. Still, the trends in coronavirus cases likely will be the most prominent policy concern and those debates should be watched closely by producers over the coming months, Washington Insider believes.
| Rural Advocate News | Friday February 12, 2021 |
Simmons Disappears From List of Firms Ineligible To Export To China The Simmons Foods plant in Gentry, Arkansas, is no longer listed as being ineligible to export product to China, with no explanation offered by the Food Safety and Inspection Service (FSIS) for the sudden shift. Earlier this week, FSIS posted a notice that export requirements for China had changed, listing the change as being the Arkansas plant as the third company in the state ineligible to export to China, effective February 7. But a notation posted Wednesday (February 10), simply removed the Simmons plant from the list. Typically, when a company is declared in ineligible to export to a country and then becomes eligible again, there is still a period of time when shipments from the firm are not allowed, but that is not the case with Simmons. Contacts indicate this could be a sign that the initial announcement of export ineligibility was in error. It is not clear how much poultry/products Simmons had been exporting to China as contacts have indicated they believe the firm had not made any significant shipments to the country.
| Rural Advocate News | Friday February 12, 2021 |
EPA Pick Regan Stresses He Will Look At All Options On Policies North Carolina Department of Environmental Quality chief Michael Regan repeatedly assured lawmakers during his confirmation hearing last week that he would “look at all options” and be inclusive as he pursues decisions at the agency. In response to written questions, he has continued to deploy that line of response. Sen. Joni Ernst, R-Iowa, pressed Regan during the hearing on biofuels issues and again in written questions submitted after the session. Regarding the Renewable Fuel Standard (RFS) beyond 2022 when the current EPA authority on the program expires, Regan said he would consult with legal and policy teams to understand options for the agency relative to setting RFS levels beyond 2022. Ernst asked if Regan will try to grow the use of advanced biofuels like biomass-based biodiesel, Regan said, "I will confer with my legal and policy team to understand all of the options before me regarding the RFS program, and in this specific case, how to set the RFS volume requirements beyond 2022.” Regan was approved by the Senate Environment and Public Works Committee on a 14-to-six vote, with Ernst among those voting against the nomination. He is expected to win approval by the full Senate, but a vote on his nomination has not yet been set. As for the RFS beyond 2022, expectations are Congress may well weigh in on the matter just as they did to create the RFS in 2005 and when they updated mandates in 2007.
| Rural Advocate News | Friday February 12, 2021 |
Friday Watch List Markets Other than the University of Michigan's consumer sentiment index at 9 a.m. CST, there are no official reports scheduled for Friday, the start of a three-day weekend as markets are closed Monday for Presidents Day. Traders will be checking the latest weather forecasts and watching for export sales, even while China celebrates a new year. Friday's markets close at their normal times. Weather Bitter cold Arctic air will spread through the northern and central U.S. Friday. This harsh cold brings safety hazards, livestock stress and disruptions to transportation. Precipitation is in store in the Southeast as rain and in the Northwest as snow. The system producing snow in the Northwest crosses into the Plains and Midwest during the weekend.
| Rural Advocate News | Thursday February 11, 2021 |
Democrats Seek Climate Change Considerations in Transportation Policy A group of Congressional Democrats urges the Transportation Department to prioritize consideration of climate change in transportation policy. In a request to Transportation Secretary Pete Buttigieg, the group says, “we cannot make progress toward emissions reductions without a program to measure and report on performance.” Led by Senator Ben Cardin, a Maryland Democrat, and Representative Earl Blumenauer, an Oregon Democrat, the coalition asked Buttigieg to reinstate the greenhouse gas measure for tailpipe emissions. The Trump administration repealed the rule in 2018. The greenhouse gas measure would have required state and local officials to provide consistent information on the percent change in tailpipe carbon dioxide emissions from the reference year 2017. Officials were then required to set performance-based targets and regionally appropriate solutions to achieve those targets. Through his first steps on climate change, the lawmakers also asked Buttigieg to improve the methods and procedures for accounting for the climate and environmental justice impacts of transportation decisions and investments. ************************************************************************************ COVID-19 Assistance Package Includes Provisions from Stabenow The COVID-19 Assistance Package includes provisions supported by Senate Agriculture Chair Debbie Stabenow. Stabenow says, “We need to take bold action to get farmers, families, and rural communities the help they need to weather this crisis and come out stronger on the other end.” The Michigan Democrat worked with House Agriculture Committee Chairman David Scott and House Education and Labor Committee Chairman Bobby Scott to secure the provisions in the bill. Those provisions provide additional food assistance for those facing hunger by continuing a 15 percent boost in the Supplemental Nutrition Assistance Program, and allows the Secretary of Agriculture to address supply chain issues facing the food and agriculture sector. The Senate Ag Chair says the bill also supports farmers of color and invests in rural hospitals, along with expanding vaccine distribution in rural communities. The legislation would help rural hospitals make up for high costs and lost revenue, and increases telehealth capabilities. ************************************************************************************ Peterson Institute: China Phase One Deal Falls Short The Peterson Institute calls the China Phase One agreement a “flop” in a recent analysis. The analysis says, “Much of the deal was a failure.” Citing China’s pledge to buy $200 billion more of U.S. goods and services over two years, evidence from the deal’s first year shows China was never on pace to meet that commitment. During the trade war, U.S. agricultural exports to China were cut in half in 2018, with 2019 levels remaining nearly 30 percent lower than in 2017. Overall, China did ramp up farm purchases in 2020 and by September was back on pace to reattain 2017 levels. However, the analysis says U.S. agricultural exports ended up both 18 percent short of the 2020 legal commitment and considerably lower than the Trump administration’s political aspirations. Without the U.S.-China trade war, exports to China would have ended up roughly 19 percent higher than actual 2020 levels, according to the analysis. ************************************************************************************ Senate EPW Committee Send EPA Administrator Nomination to Full Senate The Senate Environment and Public Works Committee this week advanced the nomination of Michael Regan as Environmental Protection Agency Administrator to the full Senate. Committee Chairman Tom Carper, a Delaware Democrat, says a bipartisan majority of Committee members voted to move forward on the confirmation by a recorded vote of 14 to 6. Regan’s nomination now heads to the Senate floor for a full vote. Carper says of Regan, “I’m confident he will bring his sterling record of public service to lead the EPA with integrity and compassion.” Senator Shelley Moore Capito, the top Republican on the Panel from West Virginia, was one of the four voting against the nomination. While complimenting Regan’s professionalism and accomplishments, Capito says, “I remain deeply concerned about unaccountable climate czars in the White House and their control over EPA and environmental policy.” Republicans on the committee also questioned Regan’s stance on the Keystone XL Pipeline, and the Waters of the U.S. rule. ************************************************************************************ USDA Reminds Producers of ARC, PLC, Deadline Agricultural producers who have not yet enrolled in the Agriculture Risk Coverage or Price Loss Coverage programs for 2021 must do so by March 15. Producers who have not yet signed a 2021 enrollment contract or who want to make an election change should contact their local USDA Farm Service Agency office to make an appointment. Program enrollment for 2021 is required to participate in the programs, but elections for the 2021 crop year are optional and otherwise remain the same as elections made for 2020. FSA Acting Administrator Steve Peterson says, “please do not wait to start the enrollment process.” ARC and PLC are considered vital economic safety nets for most American farms. Although more than one million contracts have been completed to date, this represents less than 59 percent of the more than 1.7 million contracts anticipated by the Agency. By enrolling soon, producers can beat the rush as the deadline nears. ************************************************************************************ National Sorghum Producers Announces Virtual Industry Forum National Sorghum Producers will host a virtual industry forum on March first. The virtual forum will honor 2020 Sorghum Yield Contest winners and address issues and advancements in the industry. The event will take place in advance of Commodity Classic where it is typically held in person, but due to COVID-19 restrictions, all events will take place virtually this year. NSP CEO Tim Lust says, “The beauty of having a virtual event is we are able to open this forum to the entire industry and guests through an efficient, informative and entertaining program.” The event will feature a keynote with insights from Washington, D.C. Reece Cannady, U.S. Grains Council manager for global trade, and Sorghum Checkoff director Florentino Lopez will overview opportunities relating to current markets and sorghum demand. This will be followed by updates from Sorghum Checkoff Agronomy Director Brent Bean on the top producer requested advancement in sorghum seed technology, improved grass control with herbicide-tolerant sorghum. Producers can register for the event at SorghumGrowers.com/yield2020.
| Rural Advocate News | Thursday February 11, 2021 |
Washington Insider: Tough Fight to Save Manufacturing Bloomberg is reporting this week that President Biden is beginning to approach the challenge of rebuilding the nation's manufacturing jobs—that are some 582,000 below pre-pandemic level. The report says Biden, like several predecessors, began by “promising to restore hope to a blue-collar middle class battered by decades of relentless job losses from automation and foreign competition.” But it warns that the realities of trying to stoke U.S. manufacturing employment in the wake of an economic crisis may risk “endangering his plans.” After a period of recovery last year, U.S. factory payrolls stagnated in recent months, then went into reverse in January. The country is on course to repeat a pattern seen in every recession since manufacturing jobs peaked in June 1979: a structural step-down in employment even amid a sustained expansion in output. As President Biden starts to lay out plans for the long-term economic rebuilding program designed as a follow-on to his $1.9 trillion COVID-19 relief bill, “the business calculus of American manufacturing looms as a headwind,” Bloomberg thinks. Bloomberg then presents an “analysis” of plant-closure notifications sent by companies to state officials around the country that shows that fallout from the pandemic is far from over. Employers, who have already cut a net 582,000 factory jobs compared with the pre-COVID-19 level, aim to emerge leaner and meaner from the crisis. For example, in Ferndale, Washington, Mayor Greg Hansen watched Alcoa, the biggest U.S. aluminum producer, close a smelter last year that operated for more than half a century. The decision put 700 workers, the equivalent of 5% of the town's residents, out of work without any obvious pathway to another job. In nearby Bellingham, Safran Cabin, which makes overhead baggage compartments and ceiling panels for Boeing airplanes and Mitsubishi regional jets, will be shutting its local plant by year-end, laying off another 250. That left Hansen confronting the same problem plaguing small American factory towns for decades. “We need to try to figure out what do we do now and make sure we have good blue-collar jobs” for those affected, Hansen says. “That's a much bigger, more difficult puzzle to figure out.” Bloomberg notes that even companies like Caterpillar Inc., one of the world's largest machinery makers, are trying to plan for what remains an uncertain recovery. Wall Street analysts don't expect its sales to return to pre-pandemic levels until at least 2025. In a move intended to boost morale, the company has reinstated employees' annual salary increases and kept health care premiums unchanged for at least some employees for the first time in years. But its 2020 annual government filing will likely show employment dropped for a second straight year. How much U.S. industrial capacity will end up being cut is unclear, Bloomberg says. Industrial production in December was 3.6% lower than a year earlier, with capacity usage 5.3 percentage points below its 1972-2019 average. More recent data from purchasing-manager surveys show orders for manufactured goods expanding at the start of 2021. But there are bigger questions over the return of jobs--and the political reverberations that would accompany a failure to bring them back in important swing states like Michigan and Pennsylvania. United Steelworkers President Tom Conway is already worried about a jobless recovery. “That's what happened in 2009,” Conway says. “We'll see productivity take a big pop with no significant increase in the workforce” and remaining employees “working 12-to-16-hour days for months on end,” he fears. Biden and his team are well aware of the danger, Bloomberg says. Even as the president woos business support for his relief plan – showcased in an Oval Office meeting Tuesday with chief executives – he's planning a bigger role for the government in this recovery, with money for both research and demand creation, via infrastructure programs, procurement policies, reshoring initiatives and long-term priorities including climate change. Biden is due to visit the industrial state of Wisconsin next week. That's in the run-up to a congressional address in which he is expected to lay out his “build back better” plan, including components to create more manufacturing jobs that advisers hope will spark some bipartisan action. “In the area of manufacturing and infrastructure – and they are related – there could be and should be some bipartisan interest,” Biden economic adviser Jared Bernstein said in an interview. “There are lots of states that are red, blue and purple that would very much be interested in signing on to a jobs agenda with high-value-added manufacturing jobs.” U.S. manufacturing still faces plenty of long-term challenges. A forthcoming study of Indiana by the Brookings Institution and the American Enterprise Institute found that the most manufacturing-intensive U.S. state was plagued by declines in productivity and investment and a rotation from production jobs to warehousing ones. Between 2001 and 2019, Indiana lost 72,000 manufacturing jobs, the report found, a number that “puts the last year in perspective:” there were 36,000 fewer factory workers in Indiana in December than just one year before. So, we will see. The drivers of competitive success are highly complex and often arise from better technologies. How well those mesh with the needs of the labor force are difficult to anticipate, and clearly will pose large challenges for the new Biden team—and will lead to intense debates regarding new policies that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday February 11, 2021 |
Restaurants, Small Businesses Get Fresh Relief In Draft Package The House package includes $7.5 billion in additional funding for the Paycheck Protection Program (PPP) of forgivable loans for small businesses. The House Small Business Committee released its draft language for its elements of President Biden's COVID-19 relief plan. The PPP only just re-opened last month, thanks to fresh funding approved in the December aid bill. The House Small Business Committee will vote on the text today. The new proposal creates a $25 billion program for restaurants and other food and drinking establishments. A fifth of the funding will be set aside for the smallest firms — those with 2019 revenue of less than $500,000. The grants, available in amounts as large as $10 million per entity, may be used for expenses including payroll, mortgage, rent and utilities. The new initiative would be welcome news in the hospitality industry, which has been among the hardest hit during the pandemic crisis.
| Rural Advocate News | Thursday February 11, 2021 |
GOP's Thompson Criticizes Sudden Partisanship on House Ag Panel House Ag Committee Ranking Member GT Thompson, R-Pa., Wednesday asked the Democrats why they turned partisan in latest ag aid measure. “It is with a measure of regret that we begin our tenure together marking up this reconciliation bill,” Thompson said. “The members of the Ag Committee have long prided ourselves on our bipartisanship.” While the two sides have been work together, Thompson expressed disappointment at the actions being pursued on the COVID-19 aid plan. “Rather than spending time to work with Republicans, the Democratic leadership in the House and Senate are abusing the reconciliation process to jam through a very narrow, partisan agenda with the barest of majorities,” Thompson said. “Unfortunately, this flawed approach is now being adopted by this Committee. What we are marking up today was written behind closed doors; Republicans were cut out of the process. The first time we saw this $16 billion proposal was less than 48 hours ago. “ Thompson also was critical of the panel not holding any hearings on the COVID response efforts that were deployed by USDA. “We cannot fully account for what was spent and whether it was helpful,” he stated. “What's worse, we don't know what the new needs are and if we're meeting them with this package today.”
| Rural Advocate News | Thursday February 11, 2021 |
Thursday Watch List Markets At 7:30 a.m. CST we will have initial jobless claims as well as continuing jobless claims reported. We will also be looking for any new export sales announcements at 8 a.m. CST and any updates on South American weather. Weather Thursday brings more effect of a strong Arctic cold wave to most primary crop areas. Ice and snow are in store from the southern Plains through the Delta and southeastern Midwest. A swath of snow will develop in the northern Plains. Bitter cold wind chills will spread across the northern Plains and northern Midwest. Meanwhile, rain will cover much of the western Gulf Coast and Deep South. This combination is stressful to livestock and brings safety hazards to transportation and travel.
| Rural Advocate News | Wednesday February 10, 2021 |
USDA Releases Latest WASDE Report The latest World Agriculture Supply and Demand Report released Tuesday lowered ending stocks for corn and soybeans, while increasing expected export sales. In the report, corn exports were raised 50 million bushels, reflecting historically large purchases by China. With no other use changes, USDA lowered corn ending stocks 50 million bushels, as a result. The season-average corn price was raised ten cents to $4.30 per bushel. Meanwhile, soybean exports are projected at 2.25 billion bushels, up 20 million from last month, reflecting record marketing-year exports through January and a slow start to Brazil's export season. With soybean crush unchanged, soybean ending stocks were reduced 20 million bushels to 120 million. If realized, soybean ending stocks would be down 77 percent from 2019/20, and the lowest since 2013/14. The U.S. season-average soybean price for 2020/21 is forecast at $11.15 per bushel, unchanged from last month. And, the supply and demand outlook for wheat is largely unchanged this month. ************************************************************************************ Senators Reintroduce Justice for Black Farmers Act A group of Senate Democrats this week reintroduced the Justice for Black Farmers Act. The legislation aims to address and correct historic discrimination within the U.S. Department of Agriculture in federal farm assistance and lending. The bill was first introduced in November 2020. At the time, the Senators stated USDA discrimination "has caused Black farmers to lose millions of acres of farmland and robbed Black farmers and their families of hundreds of billions of dollars of inter-generational wealth.” The legislation will enact policies to end discrimination within USDA, protect Black farmers from losing their land, provide land grants to create a new generation of Black farmers and restore the land base that has been lost. The bill also seeks to implement systemic reforms to help family farmers across the United States. Senator Corey Booker, a Democrat from New Jersey who now holds a seat on the Senate Agriculture Committee, reintroduced the legislation, along with colleagues from Massachusetts, New York, Minnesota, Georgia and Vermont. ************************************************************************************ Senators Urge Biden to Withdraw Sheep Import Rule A Senator from North Dakota wants the Biden administration to withdraw a final rule on the importation of sheep and goats. Republican Kevin Cramer made the request in a letter to the Department of Agriculture this week, asking the rule be withdrawn until its impact on current market conditions can be fully evaluated. The rule, finalized on January 14, would remove brain disorder-related import restrictions on sheep, goats, and most of their products. Cramer says the existing import restrictions function as a necessary protection against the introduction of other brain disorders, such as scrapie or mad cow disease. Republican Senators Steve Daines of Montana, John Cornyn of Texas, John Barrasso and Cynthia Lummis of Wyoming, John Thune and Michael Rounds of South Dakota, and John Hoeven of North Dakota joined Cramer on the letter. The Senators state, "By allowing scrapie-positive animals and genetic materials into the United States, we risk reintroducing the very disease we have nearly eradicated." ************************************************************************************ Hemp Checkoff Survey Results Announced Hemp industry stakeholders this week announced survey results regarding industry attitudes towards a hemp checkoff program. The overall survey results show that nearly eight out of every ten farmers and processors support the checkoff program for research, promotion, and consumer education. Over six of ten farmers and processors support being assessed to fund a program. The results were announced by the National Industrial Hemp Council and The Hemp Industries Association. NIHC Chair Patrick Atagi says, “This is exciting news for our industry and exciting that there is such wide consensus in our industry to support such a program.” Funded through assessments on the produced commodity at the first point of sale, checkoff programs allow producers of commodities to pool resources for research, education, and promotion efforts to expand sales and improve production efficiencies. The survey received 270 responses and was conducted online via November 30, 2020, until December 31, 2020. ************************************************************************************ Growth Energy Praises Senate Push on Biofuel Infrastructure Growth Energy Tuesday again called on the Environmental Protection Agency to reject calls to delay Renewable Fuel Standard compliance. Chris Bliley, Growth Energy's Senior Vice President of Regulatory Affairs, participated in a virtual EPA hearing on the proposal to extend the RFS compliance deadlines for the 2019 and 2020 Renewable Volume Obligations. During his testimony, Bliley called on EPA to reject calls to delay RFS compliance and instead take immediate steps to restore integrity to the RFS and restore lost biofuel demand. Bliley stated, "The intent of the RFS is to blend more biofuels into our nation's transportation fuel supply. Period. It is not meant to have oil companies use questionable legal tactics to avoid blending biofuels and then demanding that the agency further delay compliance." EPA's proposal would extend the RFS compliance deadline for the 2019 compliance year to November 30, 2021, and extend the RFS compliance deadline for the 2020 compliance year to January 31, 2022. ************************************************************************************ NASDA Seeks Flexibility to Protect Farm Workers, Specialty Crop Industry The National Association of State Departments of Agriculture this week asked the Department of Agriculture for more flexibility in the use of Specialty Crop Block Grants. Specifically, NASDA seeks additional flexibility in the Consolidated Appropriations Act of 2021 to enhance their responses to the continued demands COVID-19 places on the industry. NASDA CEO Dr. Barb Glenn stated, "challenges impacting our food supply related to COVID-19 are still present, and continued flexibility is needed." In a letter to acting USDA Secretary Kevin Shea, Glenn outlined additional ways state agriculture departments could use the grants if given approval. Examples included implementing vaccination programs for agricultural and food workers, building COVID-19 related infrastructure and offsetting increased costs to providing safe worker housing and transportation. Since the onset of the pandemic, NASDA members have continuously worked to help food producers and workers stay safe and meet their communities' needs. Through additional and allowed flexibility in funding programs, NASDA members would be able to leverage and maximize local solutions for local recovery efforts.
| Rural Advocate News | Wednesday February 10, 2021 |
Washington Insider: The Coming Climate Change Battle Politico is reporting this week that corporate America is entering the Biden era with bold public pledges to fight climate change. But as Democrats seek to hold businesses to those promises, “they're facing a big battle.” Democrats are vowing to go through the Securities and Exchange Commission to impose sweeping financial disclosure rules on climate risk that would force thousands of businesses including banks, manufacturers and energy producers to divulge information to investors. Lenders are set to get even more scrutiny from their own regulators like the Federal Reserve, including potential stress tests to measure their resiliency to rising sea levels and extreme weather. Politico says the coming “backlash” is just beginning. The report says that BlackRock CEO Larry Fink, who has been hailed by some as a corporate leader in fighting climate change, is putting his weight behind a call for companies to abide by a voluntary global standard and “is warning against the potential shortfalls of government intervention.” Also, Republican lawmakers are emerging as allies to businesses resistant to the looming transparency rules. “This is about solving a societal problem that does not align simply with the SEC's mission,” said Rep. Patrick McHenry of North Carolina, the top Republican on the House Financial Services Committee. “I'd like the Securities and Exchange Commission (SEC) to stick to what they do and then for us in the elected class to make these large-scale societal decisions.” At the heart of the clash is a broader argument about how much control the government should have over business, a debate that will get more heated as the Biden administration moves to impose stricter regulations on the economy after four years of rollbacks by former President Donald Trump. The reluctance to embrace a large government role in climate policy is echoed by business groups in Washington, D.C., that are calling for flexible disclosure requirements. The campaign by Democrats is expected to trigger a lobbying blitz as companies try to shape regulations. An increasing number of corporations are responding to the pressure by releasing more climate data voluntarily, though industry representatives say companies are split on the issue. The U.S. Chamber of Commerce and the American Petroleum Institute (API), two of the biggest business associations, are warning against rigid rules which could expose companies to legal trouble if they don't accurately report information. The API said it supports greater transparency but that rules "must be workable for different industries, support access to capital for all sectors and allow for companies' reporting to demonstrate the multiple pathways toward managing climate opportunities and risks." The Chamber argues that the regulations should allow for companies and their investors to determine the most relevant information to release. "There are people who are going to be reluctant to have any disclosure obligations imposed on public companies sort of broadly," said former SEC Chair Mary Schapiro, who is now a key player in crafting international climate reporting standards and supports mandatory disclosure. Republican officials are signaling that they will fight the effort, giving companies a powerful set of friends. Republican SEC Commissioner Hester Peirce told POLITICO she was skeptical that climate-related requirements could meet the standard of "material" information for investors. Sen. Pat Toomey, R-Pa., who will be the top Republican on the Senate Banking Committee, said, "Imposing a costly and prescriptive reporting regime would discourage firms from going public, reduce access to capital and slow economic growth, which means fewer jobs and opportunities for retail investors." BlackRock's Fink argues that many publicly traded companies are on track to manage their climate risk amid growing market pressure and that the government should focus on privately held firms that are taking on more carbon-intensive businesses. “We're going to see a vast change in the public company arena worldwide,” he said last week. We're not going to need really governmental change or regulatory change.” "There is, without question, significant and systemic risk to the financial system that is created by climate change," said Rep. Sean Casten, D-Ill., who wrote legislation with Sen. Elizabeth Warren, D-Mass. that would require the SEC to develop climate disclosure rules. "Yet if you are an investor and you want to understand how much of that risk you're exposed to, you don't have any unambiguous metric that says this is what your exposure is that's done in a consistent way." The official who's expected to lead the way for Democrats is Gary Gensler, Biden's nominee to chair the SEC. Gensler “took on the banks when he was the lead regulator writing financial trading rules after the 2008 Wall Street meltdown,” Shapiro said. “The U.S. needs to be participating with the rest of the world in dealing with these issues. That's something that Gary will be quite sensitive to." While some companies will resist government intervention, others see benefits in having regulators accelerate standard reporting metrics. But industry representatives say the methods used to measure and report climate impacts are still developing and it may be a gamble to codify them into federal rules. “You have this voluntary system out there," said Dorothy Donohue, deputy general counsel at the Investment Company Institute, which counts BlackRock among its members. Once you put it in a rule, it's a whole lot harder to change," she said. "That's not to say institutions won't get there, but I think at the moment when those numbers are being disclosed, I think people take them with a large pinch of salt.” So, we will see. This is a debate that is likely to intensify sharply and which could be very important to producers — and so, one that should be watched closely as it emerges, Washington Insider believes.
| Rural Advocate News | Wednesday February 10, 2021 |
Democratic Senators Unveil Pandemic Relief For Farmers Of Color Four Democratic senators — Raphael Warnock of Georgia, Cory Booker of New Jersey, Ben Ray Lujan of New Mexico, and Senate Agriculture Committee Chairwoman Debbie Stabenow of Michigan — introduced a bill aimed at delivering direct relief to Black, Indigenous, and Hispanic farmers and other agricultural producers of color affected by the coronavirus pandemic. Warnock said the effort also is aimed at addressing what he described as “longstanding inequity in agriculture.” The Emergency Relief for Farmers of Color Act would provide $5 billion to farmers of color as part of the $1.9 trillion pandemic relief package being pushed by Democrats and President Joe Biden. The bill would provide $4 billion in direct relief payments to help farmers of color pay off outstanding USDA farm loan debts and related taxes, help them respond to the economic impacts of the pandemic.
| Rural Advocate News | Wednesday February 10, 2021 |
Senate Panel Approves Regan Nomination to Top EPA Post The Senate Environment and Public Works Committee voted 14-to-six Tuesday to approve the nomination of Michael Regan to serve as EPA Administrator. Four Republicans — Sens. Kevin Cramer of North Dakota, Roger Wicker of Mississippi, Lindsey Graham of South Carolina, and Dan Sullivan of Alaska — joining the panel's 10 Democrats in support. The six Republicans voting no — Sens. Shelly Moore Capito of West Virginia, James Inhofe of Oklahoma, Cynthia Lummis of Wyoming, Richard Shelby of Alabama, John Boozman of Arkansas, and Joni Ernst of Iowa — indicated their vote was not so much against Regan as against the Biden administration's climate policies. “As an individual he is exactly the sort of person that I would like to see leading a federal agency but unfortunately officials in place at the White House and at the EPA have already set the agenda before he even achieves the office,” ranking member Capito said. “It is unclear whether Secretary Regan, if confirmed, would have any authority to stop the regulatory march towards the Green New Deal. Without clear commitments to oppose some policies that would economically devastate my state, I cannot support him.” It is not yet clear when his nomination will be taken up by the full Senate, but he is expected to be approved by the chamber to take the top EPA post.
| Rural Advocate News | Wednesday February 10, 2021 |
Wednesday Watch List Markets There has been a lot talk lately of increased inflation expectations so Wednesday's consumer price index report from the Labor Department is apt to get attention at 7:30 a.m. CST. The U.S. Energy Department releases its weekly report of energy inventories at 9:30 a.m., including a report on ethanol production. The U.S. Treasury Department reports on the federal budget for January at 1 p.m. CST. Traders will also pay attention to the latest weather forecasts and any news about export sales that might arise. Weather Wednesday features another day of bitter cold in the north-central U.S. At the edge of the cold wave, ice and snow will cause travel and safety hazards from the southeastern Plains through the Delta and Ohio Valley. The harsh cold pattern is indicated to remain in place through the next ten days.
| Rural Advocate News | Tuesday February 9, 2021 |
2020 Pork Exports Shatter Previous Records, December Beef Exports Outstanding U.S. pork exports reached nearly three million metric tons in 2020, topping the 2019 record by 11 percent, according to the U.S. Meat Export Federation. Pork export value also climbed 11 percent to a record $7.71 billion. Exports set new annual records in China/Hong Kong, Central America, Vietnam and Chile, and achieved strong fourth-quarter growth in Japan and Mexico. Meanwhile, U.S. beef exports finished 2020 lower year-over-year, falling five percent in both volume at 1.25 million metric tons, and value at $7.65 billion. But beef exports finished the year with very strong momentum, with fourth-quarter volume up 4.5 percent from 2019 and posting one of the best months on record in December. Beef exports to China were record-large in 2020, and a new volume record was also achieved in Taiwan. U.S. lamb exports reached a record 20,045 metric in 2020, up 27 percent year-over-year, though export value fell nine percent to $23.8 million. ************************************************************************************ Farm Sector Profits Forecast to Decrease in 2021 The Department of Agriculture forecasts net farm income to decrease $9.8 billion, or 8.1 percent in 2021, to $11.4 billion. The decline is largely driven by less expected government assistance to producers. In inflation-adjusted 2021 dollars, net farm income is forecast to decrease $12 billion in 2021 after increasing $37.8 billion in 2020 to its highest level since 2013. Despite the decline, 2021 net farm income would be 21 percent above its 2000-19 average of $92.1 billion. After increasing a forecasted $27.3 billion in 2020, net cash farm income is forecast to decrease $7.9 billion to $128.3 billion in 2021. Net cash farm income encompasses cash receipts from farming and farm-related income, including government payments, minus cash expenses. Cash receipts are forecast to increase in 2021, but lower direct government farm payments are expected to drive most of the decline. Cash receipts for all commodities are forecast to increase $20.4 billion, or 5.5 percent, to $390.8 billion in 2021. ************************************************************************************ Democratic Lawmakers Seek End to Cuba Embargo Democrats in the Senate last week introduced a bill to end the U.S. embargo on Cuba. Senate Finance Committee Chair Ron Wyden of Oregon introduced the U.S.-Cuba Trade Act of 2021 to repeal sanctions on Cuba and establish normal trade relations with the island nation. Wyden stated, “To continue this outdated, harmful policy of isolation would be a failure of American leadership.” The embargo was first placed on Cuba in 1962. President Barack Obama attempted to normalize relations with Cuba, but President Donald Trump re-enforced regulations previously eased by Obama. The U.S.-Cuba Trade Act of 2021 would repeal the major statutes that codify sanctions against Cuba, including the Helms-Burton Act and the Cuban Democracy Act, as well as other provisions that affect trade, investment and travel with Cuba. It would also establish normal trade relations with the country. Senate Democrats Patrick Leahy of Vermont, Richard Durban of Illinois, and Jeff Merkley of Oregon Joined Wyden on the bill. ************************************************************************************ U.S. Ethanol Exports Surpass 1.3 Billion Gallons for 2020 Data from the Department of Agriculture shows U.S. ethanol exports for 2020 totaled 1.3 billion gallons, down 9.8 percent from 2019 and hovering around 2017 levels. However, Growth Energy CEO Emily Skor says, "we're optimistic to see worldwide ethanol demand continue to provide U.S. producers with market opportunities." Canada took over as the top export market for U.S. ethanol, with 326.4 million gallons for the year. Growth Energy says Canada continues to be a global leader in the use of biofuels, which is expected to grow with their Clean Fuel Standard as well as provincial moves to higher biofuel blends. Brazil dropped to the second U.S. export market, at 188.8 million gallons, a 40 percent difference from 2019, due to tariff issues between the U.S. and Brazilian governments. In India, the U.S. saw a 9.1 percent increase at 189.6 million gallons. The fourth-largest export market in 2020 was South Korea, followed by the Netherlands. ************************************************************************************ United Fresh Launches 2021 Produce Industry Compensation Survey The United Fresh Produce Association Monday launched its 2021 Compensation Survey for the fresh produce industry. The data collected will be published in a report that will assist produce industry employers in understanding critical compensation benchmarks. For 2021, additions to the survey include two new positions focused on sustainability, and a series of questions related to how companies have changed their salary and benefit practices in the wake of COVID-19. The survey also will collect compensation and benefits data from produce companies for more than 30 full-time positions. The survey is open to any U.S. or Canadian-based produce employer, including grower-shippers, brokers, wholesaler-distributors, importers, exporters, and fresh-cut processors. The survey is administered every two years, and the results will be published this June in a detailed report designed to help produce companies directly compare their salaries and benefits for more than thirty full-time positions. The survey is open at www.unitedfreshsurvey.com to any U.S. or Canadian-based produce company until March 12. ************************************************************************************ Fuel Prices Continue Rise, Demand Down Slightly The national average gas price increased for the fifth consecutive week, rising 3.7 cents per gallon over the last week to $2.45. The national average price of diesel was up 3.8 cents in the last week and stands at $2.68 per gallon. However, U.S. gasoline demand fell slightly for the week ending Saturday, the second straight week of decline. Patrick DeHaan of Gas Buddy says many factors are behind the increase, but “at the foundation of the rise is the fact that the coronavirus situation continues to improve, pushing global oil demand higher as production continues to lag, pushing U.S. gas prices higher.” Until OPEC raises oil production in the months ahead, DeHaan expects the trend to continue. Crude oil prices carried their rally into the new week, as it continues to push higher as rebounding global demand brings concerns that oil production isn’t returning fast enough. Since November, crude oil prices have skyrocketed over 60 percent.
| Rural Advocate News | Tuesday February 9, 2021 |
Washington Insider: China Policy Evaluated Bloomberg is reporting this week that the China policy debate in Washington is often framed in terms of toughness and as a binary choice — President Joe Biden is either going to be tough or soft on China and former President Donald Trump's “Tariff Man” approach to the relationship is frequently the benchmark used, the report says. However, Bloomberg thinks that the “more clarifying question” is whether Biden and his team will craft an “intelligent” approach to China that likely will be “the most significant strategic competitor the U.S. faces.” Last weekend, President Biden told the press that he plans a “new strategy” built around U.S. allies and global rules. “I'm not going to do it the way Trump did,” he said. It's still unclear what that means in concrete terms in a world where commercial and geopolitical imperatives often clash. Allies in the European Union have their own strategic concerns yet still want an investment treaty with China to solidify economic links. Likewise, General Motors and Tesla still want to sell a lot of cars in the Asian nation. Biden's new trade policy ideas also have come amid evidence that while President Trump may have installed China fears atop the American foreign policy agenda, his own trade strategy did not deliver the economic gains promised. The pandemic's effects on the global economy put a big asterisk on any analysis. But the numbers are stark. The U.S. had 150,000 fewer manufacturing workers in January 2021 than it did in January 2017, the month President Trump took office, Bloomberg said last week. U.S. data for 2020 put the annual U.S. deficit in goods trade with China at $310.8 billion, $36 billion less than at the end of 2016. That looks good for Trump, until you see that trade just went elsewhere, Bloomberg argues. The gap in goods with Vietnam was up by more than $37 billion over the same period. The shortfall with Mexico increased by $49.5 billion. The total annual U.S. goods and services deficit with the world grew by $197.5 billion, or 41%, during Trump's term. The new president's team is also reviewing the “Phase One” deal that Trump signed with China a year ago. And Beijing also hasn't delivered so far on the first year of the two-year deal that calls for China to purchase $200 billion in additional U.S. goods over a 2017 benchmark. Though, again, that has a pandemic asterisk on it. Bloomberg's economic experts say that, “Trump's legacy was to break an unbalanced relationship, one that delivered more benefits to China than the U.S.” It thinks that Biden's task will be to build a new approach, with U.S. interests at the center. Breaking things is quick. Building them takes longer. While the new framework for U.S.-China relations has the potential to substantially reshape economies and markets around the world, it's not going to happen right away, Bloomberg warns. In a new accounting released Sunday, Chad Bown of the Peterson Institute for International Economics found Chinese purchases in 2020 fell 40% short of the deal's targets for that year. In 2020, U.S. manufacturing exports to China were still down 14% from when President Trump's trade war started in 2017, Bown calculated — which “Bloomberg thinks isn't good,” even if Boeing's 737 Max travails account for some of that. Those metrics also come against a continuing debate over the cost in U.S. jobs of competing with China. In a celebrated 2016 paper, David Autor, David Dorn and Gordon Hanson estimated that between 1999 and 2011, increased imports from China — the “China Shock” — killed 2.4 million jobs in the U.S. But it turns out one of the most commonly used U.S. trade-defense mechanisms, anti-dumping tariffs, may have caused their own labor-market carnage. In a recent working paper, Bown, Paola Conconi, Aksel Erbahar and Lorenzo Trimarchi calculate that the higher cost of imported inputs caused by those tariffs leveled at China caused the U.S. economy to create 1.8 million fewer jobs in downstream industries between 1988 and 2016 than it might have otherwise. A further 500,000 jobs were lost in the first two years of President Trump's presidency. The industries the tariffs ostensibly protected showed no meaningful job gains, the report says. The policy lessons are messy because the relationships are complex. To get anti-dumping tariffs, petitioners have to prove “injury” via lost jobs or revenues. An industry needs a tangible “China shock” to secure tariffs that may lead to job losses among its clients. Lost jobs equal tariffs equal more lost jobs. Anti-dumping tariffs aren't the only ones in place. Trump imposed duties on more than $300 billion in Chinese imports that are now being reviewed by the Biden administration. Even before the pandemic, these are often blamed for costly supply-chain disruptions and even a U.S. manufacturing recession. They also are often seen as contributing to a rotation of production out of China to Mexico and Vietnam, a geopolitical win if not an economic one. How Biden digests all this is yet to be seen. Most of his nominees still need Senate confirmation and are navigating Washington politics by doing their best to look tough — for now. It's going to be a while before we learn just how intelligent their new China policy will be. Bloomberg also noted that in a nod to the WTO, the U.S. gave its formal backing to Ngozi Okonjo-Iweala, removing the final obstacle to her bid to be the first woman and the first African to run the Geneva-based trade body. Also backed by the EU, Japan and China, world leaders hope Okonjo-Iweala can help steer the WTO out of its negotiating morass and help it deal with the modern, more complex global trading system. So, we will see. Clearly, there is a, broad, intense interest about the details that are yet to emerge and define the new trade policies — and intense debates can be expected as these are proposed and implemented, a process that producers should watch closely as it continues, Washington Insider believes.
| Rural Advocate News | Tuesday February 9, 2021 |
USDA Farm Income Forecast Reflects Rising Crop, Livestock Receipts USDA issued its first 2021 farm income forecast Friday, indicating it would be down from the 2020 level for both net farm income and net cash farm income. The downturn in forecast 2021 farm income comes mostly on the decline in expected government payments — falling from a record $47 billion in 2020 to $23 billion in 2021. The drop in government payments more than offset what is forecast to be increased receipts to farmers from their crops and livestock. But this will not be USDA's final word on 2021 farm income. At this point in 2020, their farm income outlook for that year lacked the eventual government payments that flowed to U.S. agriculture via two rounds of COVID aid.
| Rural Advocate News | Tuesday February 9, 2021 |
US Ag Exports Set Fresh Record In December U.S. ag exports totaled $15.91 billion in December, setting a new record for the month and marking the first time that value of U.S. ag exports has topped $15 billion three months in a row. The prior monthly record was $15.82 billion that was set in December 2013. The December total was up from $15.48 billion in November. Imports of ag products totaled $11.65 billion, up from $11.37 billion in November. That left a trade surplus of $4.26 billion for the month. USDA forecasts U.S. ag exports at $152 billion in FY 2021 against imports of $137 billion for a surplus of $15 billion. Three months into FY 2021, exports already total over 30% of the forecast for the entire FY. The highest totals for U.S. ag exports typically have come in the first quarter of a fiscal year, so it will be interesting to see if the sector registers another month at or above $15 billion. While USDA does not forecast a trade surplus level — it is a function of their export forecast minus their import forecast — the total so far is just above 79% of the total. But the period for the largest imports still lies ahead in the March-June timeframe. After starting FY 2020 with strong surpluses for the first three months, the trade data saw monthly deficits in six of the next seven months. The final result for FY 2020 saw exports at $135.87 billion against imports of $133.22 billion for a trade surplus of $5.7 billion.
| Rural Advocate News | Tuesday February 9, 2021 |
Tuesday Watch List Markets Aside from the usual attention to weather forecasts and daily watch for export sales announcements, Tuesday's main attention will fall on USDA's February WASDE report, due out at 11 a.m. CST. Traders are expecting USDA to make reductions in the U.S. ending stocks estimates of both corn and soybeans. Otherwise, there are no significant economic reports on Tuesday's schedule. Weather Arctic-origin cold air will spread across the north central U.S. Tuesday. Dangerous wind chill values of -30 F or colder are in store. Winter storm conditions are also indicated for the Ohio Valley with freezing precipitation and snow. The Southeast has shower and thunderstorm activity indicated. In the southwest Plains, freezing fog will be hazardous for travel and livestock, and is stressful for winter wheat. The harsh cold continues through the remainder of the week.
| Rural Advocate News | Monday February 8, 2021 |
USDA Extends General Signup for Conservation Reserve Program The USDA is extending the general signup period for the Conservation Reserve Program, which was supposed to end on February 12. USDA will continue to accept offers as it takes the opportunity for the incoming Administration to evaluate ways to increase enrollment. Under the previous Administration, incentives and rental payment rates were reduced, which resulted in a shortfall over more than four million acres. The program is administered by the Farm Service Agency and provides annual rental payments for 10 to 15 years for land devoted to conservation purposes and other types of payments. Before the General CRP Signup Period ends, producers will get the opportunity to adjust or resubmit their offers to take advantage of planned improvements to the program. “The Conservation Reserve Program provides a tremendous opportunity to address climate change both by retiring marginal cropland and by restoring grasslands, wetlands, and forests,” says Robert Bonnie, Deputy Chief of Staff in the Office of the USDA Secretary. Program successes include sequestering more than 12 million metric tons of carbon dioxide in soils and plants, which is about the same amount that the state of Delaware emits annually. Also, more than two billion tons of soil haven’t blown away due to wind erosion. ********************************************************************************************** Kansas Cattleman Jerry Bohn Elected New NCBA President The National Cattlemen’s Beef Association wrapped up its virtual Winter Business Meeting by electing Kansas cattle producer Jerry Bohn as its new president. Bohn is a retired Lieutenant Colonel in the U.S. Army Reserve. His early days included custom grazing cattle with his family in Flint Hills, Kansas, before moving on to Kansas State University. Bohn also served 34 years as the manager of a commercial cattle feeding operation called Pratt Feeders. “As I look forward to this year as NCBA President, I have immense pride in the cattle industry and our dues-paying members that help to make this the leading cattle organization representing U.S. producers,” Bohn says. “Becoming president is my greatest honor and an opportunity to give back to the industry that made me who I am today.” Don Schiefelbein (SHEEF-ehl-byne) of Minnesota was named president-elect, and Todd Wilkinson of South Dakota was elected vice president. “The grassroots power of our members and state affiliates is the reason I’m proud to represent the NCBA as President and is the reason I get up every day, ready to fight for the American producer,” Bohn adds. ********************************************************************************************** NCBA Sets 2021 Policy Priorities The National Cattlemen’s Beef Association set its top 2021 policy priorities that feature a focus on advocating for a business climate that increases opportunities for producer profitability. “There’s no doubt last year was a difficult one for cattle producers and we must work to implement sound policy and focus our attention on the legislative and regulatory areas that’ll give U.S. cattle producers the most added value,” says new NCBA President Jerry Bohn. “I am looking forward to working together with volunteer leadership, state affiliates, and stakeholders around the country to tackle the most pressing issues facing our industry.” Policy priorities include price discovery and transparency in cattle markets, which are a concern for NCBA members, making it an organizational priority. The organization will continue to ensure that all alternative plant-based or cell-grown protein products are labeled truthfully, and their ingredients are fully represented. NCBA is committed to protecting those in the cattle industry while strengthening the beef supply chain to meet the growing demand for American beef. Removing non-tariff barriers to increase worldwide markets for U.S. beef is another top priority for the NCBA. The organization will also emphasize to government officials that the U.S. cattle industry is the global model for sustainable beef production ************************************************************************************ Corn Exports Set a Record Corn export sales set a record last week, while soybean and wheat sales surged higher. China led all buyers, but especially in corn. The USDA says U.S. corn sales to overseas buyers totaled 7.44 million metric tons for the week ending January 29, the highest level since 1990. The agency says China purchased 5.86 million metric tons. Japan was next at close to 503,000 metric tons, and Mexico bought 403,700 tons. Export sales totaled 995,000 metric tons during the week ending January 29. That’s down 30 percent week-to-week and 17 percent from the previous four-week average. Soybean sales totaled 824,000 metric tons, up 77 percent from the previous week and four percent over the previous four-week average. China was the big soybean buyer at 598,900 metric tons, followed by Mexico at 121,400 tons, and the Netherlands bought 115,500 tons. Exports during the week ending on January 29 totaled 1.96 million metric tons, down 11 percent from the previous seven-day period and seven percent compared to the previous four-week average. Wheat sales also jumped higher, rising 69 percent from the prior week to 643,100 metric tons. Once again, China was the biggest buyer, purchasing 134,000 metric tons. ********************************************************************************************** Brazil Ag Minister Confirms Big Grain Crop Ahead Tereza Cristina Dias, Brazil’s Agriculture Minister, confirmed late last week that the country’s government expects their farmers will harvest bumper crops of soybeans and corn. Those expectations come despite significant planting and harvest delays. A drought late last year delayed planting soybeans in Brazil, and excess rainfall disrupted harvesting in January. Slower deliveries to Brazilian grain trading companies have affected the country’s ability to export commodities around the world. Speaking at an event marketing the beginning of harvest, Dias reaffirmed that farmers would reap up to 133 million tons of soybeans and potentially more than 103 million tons of corn this year. “Our goal is to produce more each year and break records,” Dias says. Reuters says Brazil’s 2020-2021 soybean harvest only reached 1.9 percent of the cultivated area through January 28, the slowest pace for this time of year in the past ten growing seasons. Brazil’s second-corn crop, which makes up the bulk of its total corn production, is planted after soybean harvest wraps up. With those delays, the second corn crop may finish outside the ideal window, and that might put an upside limit on the yield. *********************************************************************************************** Study Shows Precision Agriculture Improves Stewardship The Association of Equipment Manufacturers, the American Soybean Association, the National Corn Growers Association, and CropLife America released a new study on precision ag. The study shows that widely available precision agriculture technology improves environmental stewardship while providing a solid economic return for farmers. “We’re living in a new age of technology, and the equipment can have an enormous positive impact on farmers and the environment,” says Curt Blades, Senior Vice President of Agriculture at the Association of Equipment Manufacturers. The study shows several benefits, including a yield benefit through increased efficiency, reduced fertilizer usage due to more precise placement, fuel savings due to less overlap and better monitoring, and water savings through more accurate sensing of needs. “The reductions in greenhouse gases this study illustrates shows that modern agriculture is part of the climate solution,” says Kellie Bray, Chief of Staff at CropLife America. “Fuel savings alone due to precision ag tools is the yearly equivalent of taking almost 200,000 cars off the road.” Fossil fuel use has decreased an estimated six percent due to precision agriculture, and it has the potential to drop by as much as 16 percent.
| Rural Advocate News | Monday February 8, 2021 |
Washington Insider: Relatively Weak New Job Numbers Well, there is a lot of tea-leaf reading over last week's jobs report, the Washington Post — and many others — are reporting this week. The Post says the “data come as negotiations over a new stimulus package heats up in Congress and found that the U.S. gained back a paltry 49,000 jobs in January, “a sign that the economic recovery may be faltering under ongoing pressure from the coronavirus.” It reported that the unemployment rate fell to 6.3% from 6.7% in December, but that decline was driven by more than 400,000 people who left the workforce instead of getting jobs. And, it concluded that the January data, released by the Bureau of Labor Statistics, is another reminder of how much ground the labor market still needs to regain to return to pre-pandemic levels. The U.S. now has more than 9.8 million fewer jobs than it did in February 2020, recovering less than half of what was lost during the early days of the pandemic. The report dramatized the situation by estimating that “at January's growth rate, it would take more than 16 years to regain all of those jobs.” And, it cited expert opinions that were equally gloomy. “We lost momentum over the winter and the wounds are getting deeper, which opens the door to more scarring,” said Diane Swonk, chief economist at Grant Thornton LLP. “Everyone keeps waiting for this to be a temporary phenomenon. But when you're a year into it, you have to stop waiting for the next bounce and start worrying about what the long-term costs are—and how much this sets us back over the long haul.” The report found that rapid job loss continued in the leisure and hospitality industry, which shed 61,000 jobs as layoffs hit amusement and gambling businesses, hotels, restaurants and bars. Retailers lost another 38,000 jobs after an uptick during the holiday season. Health-care facilities lost 30,000 jobs, transportation and warehousing, 28,000. The report also showed that the labor market was weaker late last year than initially estimated. There were 72,000 fewer jobs created in November than originally reported. In December, the United States lost 227,000 jobs rather than the 140,000 initially estimated, the BLS said. Even a lone bright spot on the report came with an asterisk: 97,000 jobs were added in the professional and business services sector, but 81,000 of those were temporary. The report comes as Democrats move closer to passing President Biden's $1.9 trillion stimulus plan, the Post said. The proposal would extend unemployment benefits through September as well as provide $1,400 stimulus checks for many Americans. Jared Bernstein, a member of the White House Council of Economic Advisers, said on Friday that the jobs report “underscores the urgent need for the president's rescue plan,” citing particularly weak job growth in the private sector. “That is a labor market stall,” he said. “We have a plan in the wings that can finally get American families and businesses to the other side of this crisis.” President Biden, in brief remarks, told reporters that the numbers underscored the scope of the economic crisis. “This is about people's lives. This is not just about numbers,” he said. “They are really hurting. Just look at all the number of people who are needing and seeking mental health help.” The pandemic's disproportionate impacts on minorities and women were also reflected in the labor report. Unemployment rates for minorities continue to significantly outpace the 6% rate of White people — 8.6% for Hispanics, 9.2% for Black people and 6.6% for Asians. Of the more than 4 million people who left the workforce in January, nearly 60% are women, Swonk noted. And the data show that many of the unemployed have been suffering for a long period. About 3.5 million people once considered temporarily unemployed have now permanently lost their jobs, the BLS said. Of the overall 10 million people currently unemployed, about 40% have been out of work for more than six months. Meanwhile, the number of people filling new jobless claims remain well above pre-pandemic records, far outpacing previous crises. And the disproportionate impact on low-income workers combined with the unique circumstances of the pandemic likely helped conceal the true depths of the crisis, Swonk said. Coronavirus cases have recently started trending down after the deadliest month so far during the pandemic and economists expect that the declining caseload will speed an economic rebound in the spring. But they remain concerned about the threats posed by new, more transmissible variants—another potential complication for the recovery. So, we will see. A major development is the new downward trend in coronavirus cases, along with new threats to the recovery — trends that are vital to the economic outlook and which producers should watch especially closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Monday February 8, 2021 |
FAO Makes Major Downward Revision For Global, China Corn Stocks China's large imports of corn on the global market prompted the UN Food and Agricultural Organization (FAO) to “undertake a further review of its maize supply and demand balance sheet for China.” The big imports and high domestic prices, FAO said, “point to much higher feed utilization in China than earlier anticipated, and hence a much greater drawdown of stocks than earlier estimates suggested.” FAO said their review resulted in changes to China's balance sheet starting from the 2013-14 season. The FAO raised its global corn utilization forecast for 2020-21 to 1.179 billion metric tons, up 21.4 mmt from 2019/20, with China's use pegged at 190 mmt, up 15.5 mmt from December. China's 2020-21 corn carryover is now pegged at around 139 mmt, down nearly 54 mmt from December. The agency puts China's corn imports at 20 mmt, up 10 mmt from December. “The revision reflects exceptionally large purchases in recent weeks, primarily from the United States of America,” FAO said. Attention now shifts to USDA's WASDE report February 9 where the agency has maintained its forecast for Chinese imports of corn at 17.5 mmt. The U.S. ag attache in Beijing is carrying a China 2020-21 corn import figure of 22 mmt.
| Rural Advocate News | Monday February 8, 2021 |
South Korea's Yoo Drops Out Of WTO Chief Race The next leader of the WTO appears set to be former Nigerian finance minister Ngozi Okonjo-Iweala in the wake of South Korean Trade, Industry and Energy Minister Yoo Myung-hee ending her bid to lead the world trade body. "Due to the prolonged vacancy of the leadership at the WTO, the future of the organization also has become uncertain," Yoo said at a briefing in Seoul, according to Yonhap News. "To speed up the consensus building among the member countries on selecting a new director-general, I have decided to renounce my candidacy through close cooperation with the United States, our strong ally." Her last statement suggests she has coordinated the withdrawal or at least alerted the U.S. to her decision. The Trump administration had blocked the naming of Nigeria's Okonjo-Iweala, with then-U.S. Trade Representative Robert Lighthizer arguing that the trade body needed to be headed up by someone with trade experience. The Biden administration said Friday they now strongly backed putting the Nigerian atop the world trade body, setting the stage for that to happen soon.
| Rural Advocate News | Monday February 8, 2021 |
Monday Watch List Markets As the central U.S. endures its coldest temperatures of the season, traders will be paying close attention to the latest weather forecasts and will pause at 8 a.m. CST to see if USDA has an export sale announcement. Weekly grain inspections are due out at 10 a.m. CST. There are no significant economic reports on Monday's docket. Weather Bitter cold air will cover the northern and central crop areas Monday. This cold wave will cause travel, transport and safety hazards along with stress to livestock and some cold damage threat to winter wheat. Some light mixed precipitation is in store for the southern Plains and Ohio Valley along with light snow in the northwestern Plains. Wind chill threats are also prominent in northern areas.
| Rural Advocate News | Friday February 5, 2021 |
McConnell Announces Senate Committee Assignments Senate Republicans announced their committee assignments this week, following the same announcement by Senate Democrats. For the Senate Agriculture Committee, new members include Alabama’s Tommy Tuberville and Roger Marshall of Kansas. The pair take seats previously occupied by retired chairman Pat Roberts of Kansas and Kelly Loeffler of Georgia. Marshall was expected to join the agriculture committee, previously serving on the House Agriculture Committee before being elected to the Senate. Marshall was also assigned to the Senate Committee on Health, Education and Labor, the Small Business Committee and the Energy and Natural Resources Committee. Marshall states, “As a fifth-generation farm kid, someone who has spent many years leading businesses in a variety of fields, and as a physician, I look forward to adding the Kansas perspective to each of these committees.” For the 117th Congress, committees will have an equal number of Republicans and Democrats on each committee due to the 50-50 Senate composition. ************************************************************************************ WHO Food Price Index Increases Again in January The January Food Price Index averaged 113.3 points, or 4.3 percent higher than in December 2020. The index reached the eighth month of consecutive increases and registered its highest monthly average since July 2014. The latest increase reflected strong gains in the sugar, cereals and vegetable oils sub-indices, while meat and dairy values were also up but to a lesser extent. The Food and Agriculture Organization of the United Nations published the data Thursday. Global cereal grains rose 7.1 percent in January, as row crop prices rise, and vegetable oil prices were up 5.8 percent. Dairy prices were reported 1.6 percent higher. In January, butter and whole milk powder price quotations increased, underpinned by China’s high purchases ahead of its upcoming New Year holiday festivities. Meat prices were up one percent from December, but down 7.3 percent from this time last year. Sugar prices were up 8.1 percent in January, reaching levels not seen since May of 2017. ************************************************************************************ Senators Urging EPA to Restore Integrity to RFS Farm state Senators urge the Environmental Protection Agency to "restore integrity to the Renewable Fuel Standard." Iowa Republican Chuck Grassley and Minnesota Democrat Amy Klobuchar, along with 13 Senate colleagues, made the request in a letter to EPA Acting Administrator Jane Nishida. The Senators urged the EPA to review three small refinery exemption waivers issued last-minute by the former EPA Administrator, and evaluate if those waivers comply with the Tenth Circuit Court of Appeals ruling. The letter states, "If these waivers do not meet the three-part test laid out in the Tenth Circuit Court of Appeals, then we urge you to immediately reverse them and deny the refiners' waiver requests." The lawmakers also urged the EPA to swiftly issue a proposed rule for the 2021 Renewable Volume Obligation, which they say will provide growth in all renewable fuel categories and move forward with the E15 streamlining proposal to remove certain barriers to expanded sales of E15. ************************************************************************************ Thune, Shaheen Reintroduce Bill to Advance Renewable Fuel Technologies Legislation reintroduced Thursday would approve certain advanced biofuel registrations that have gone without approval by the Environmental Protection Agency, despite the fuels already being successfully used in at least one state. Senators John Thune, a South Dakota Republican, and Jeanne Shaheen, a Democrat from New Hampshire, reintroduced the bill they say will strengthen the biofuel industry. Under the bill, the EPA would also be required to render a decision within 90 days on any registration application that has been pending for at least 180 days and take action within 180 days for completed pathways petitions pending for at least 180 days. The bill would also provide $2 million for the EPA to carry out the functions of the bill. Pathways are the feedstock method through which certain renewable fuels may be created, while registrations are individual facility certifications for producers affirming that their renewable fuel meets the standard required by the pathway. ************************************************************************************ USDA Announces More Key Staff Appointments The Department of Agriculture Thursday announced more key staff appointments. Anne Knapke was named deputy assistant secretary for congressional relations. Knapke was recently a senior program officer focusing on nutrition at the Bill and Melinda Gates Foundation. Liz Archuleta was named director in the Intergovernmental affairs office. She served as a County Supervisor for Coconino County, Arizona, where she was the first Latina ever elected to that office. Jasmine Dickerson was named Legislative Director in the congressional relations office. Dickerson served as staff director for the Subcommittee on Nutrition, Oversight, and Departmental Operations on the House Agriculture Committee. Jamal Habibi was named chief of staff for the Rural Housing Service. He previously was a senior associate at the Opportunity Finance Network. During the Obama Administration, he served as an outreach director at the Treasury Department, and a Special Assistant at USDA. Finally, Brandon Chaderton was named deputy White House liaison in the Secretary’s office. Most recently, he served as human resources director for the 2021 Presidential Inaugural Committee. ************************************************************************************ Below Average Runoff Forecast for the Upper Missouri River Basin in 2021 The updated 2021 calendar year runoff forecast for the Missouri River Basin above Sioux City, Iowa, continues to be below average. Missouri River Basin Water Management Chief John Remus says, “Both plains snowpack and mountain snowpack continue to lag behind seasonal averages, and soil moisture continues to be much drier-than-normal.” January 2021 runoff in the Missouri River Basin above Sioux City was 1.1 million acre-feet, 141 percent of average. The above-average January runoff was primarily due to above-normal temperatures melting any accumulated plains snowpack and inhibiting river ice formation. The 2021 calendar year runoff forecast above Sioux City is 22.9 million acre-feet, 89 percent of average. The runoff forecast is based on soil moisture conditions, plains snowpack, mountain snowpack, and long-term precipitation and temperature outlooks. Mountain snowpack in the upper Basin is accumulating at below-average rates. The January 31 mountain snowpack in the Fort Peck reach was 78 percent of average, while the mountain snowpack in the Fort Peck to Garrison reach was 79 percent of average.
| Rural Advocate News | Friday February 5, 2021 |
Washington Insider: Biden Policy to Focus on Middle Class President Joe Biden's “foreign policy for the middle class” is less pithy than Donald Trump's “America First.” But for a world trying to gauge the new U.S. leadership, and an electorate with an uneasy relationship with globalization and other disruptive economic forces, it may be just as consequential. Bloomberg reports this week that Biden's “promise to the world” is reengagement, whether on issues from which the U.S. has been absent, such as climate change, or in multilateral institutions his predecessor sought to blow up, such as the World Health Organization. But National Security Adviser Jake Sullivan and other senior aides are also making it clear that it doesn't portend a return to a pre-Trump model. The big idea is that Washington had gradually shifted toward the interests of “corporations and investors,” the same economic grievance that Trump harnessed: “the elites sold us out.” The consequences of that perceived betrayal are seen as rising inequality, stagnant median household incomes, and employment shocks caused by the rise of China and technological change. In the wake of Trump's victory, some graduates of the Obama administration including Sullivan embraced the idea that U.S. policymakers had failed for too long to acknowledge the fallout from globalization. Thus, Obama team members joined some centrist Republican policy veterans to devise alternatives. Among the efforts was the establishment of a bipartisan task force under the auspices of the Carnegie Endowment for International Peace, a Washington, D.C., think tank where Obama's former commerce secretary, Penny Pritzker, chairs the board of trustees with a goal of creating a foreign policy that works better for the middle class. The group involved officials now in senior roles in the Biden administration: Salman Ahmed, a member of Obama's National Security Council and Sullivan, who advised Biden on national security matters when he was vice president. Among other things, the group called for the drafting of a “national competitiveness strategy” to coordinate public and private investment. One overarching theme was the need for greater coordination between foreign and domestic policy to support a better job of equipping U.S. workers with the skills they need to adapt to shifts in the labor markets. In some cases that means international priorities taking a back seat to domestic ones, an idea the Biden administration has endorsed early on. “We have to put ourselves in a position to deal with the challenges around the world,” from the “great power” battle with China to nuclear proliferation, Sullivan told a Jan. 29 U.S. Institute for Peace forum in which he repeatedly emphasized the need for a focus on domestic problems. “I don't think you are going to see this administration trade off the bread-and-butter economic issues for strategic priorities,” he said. What a foreign policy for the middle class will mean in practice remains an open question, and spokespeople like Sullivan and Ahmed are still declining requests for interviews, Bloomberg said. But other members of the Carnegie task force insist that what the Biden administration is pursuing is more than just a reframing of past internationalist policies or a relabeling of Trump's “America First.” In a recent “listening session,” researchers traveled to Colorado, Nebraska, and Ohio to sound out middle-class Americans on topics ranging from defense spending and foreign aid to trade and tariffs. What they heard was neither great enthusiasm for Trump's brand of protectionism nor the slavish devotion to free markets that came before, says task-force member Tom Wyler, who served as Pritzker's top international economic adviser at the Commerce Department and now works for her investment firm, PSP Partners LLC. That means the world ought to be ready for a U.S. that has a sharper view of its own economic interests, Wyler says. Also emerging from the task force's work was a recognition of past missteps. In hindsight the proper U.S. response 30 years ago to globalization fueled by China's rise, the growth of the internet, and the rapid decline in transportation costs would have been a congressionally mandated flood of public investment in education, infrastructure, and R&D, says task force member Christopher Smart, an alumnus of the Obama National Security Council who's now chief global strategist at investment bank Barings. “Is that a realistic scenario of what could have happened? Probably not,” he says. “But it's probably what should have happened.” So why not make it happen now, as Biden has proposed? A preview of Biden's approach could be found in the documents accompanying a “Buy American” executive order the president signed on Jan. 25. The decree itself did little more than close loopholes that allow exemptions from rules requiring federal departments to buy U.S.-made products. But the press release also noted the administration was “committed to working with partners and allies to modernize international trade rules.” That also could be read as a preamble to a broader discussion about subsidies, an issue that's sure to come to the fore as governments search for ways to boost domestic production of strategic materials. Some progressives seeking a broader remake of U.S. policy and institutions, such as the WTO, worry Biden will focus too much on wooing allies. “I hope it won't just be that—four years of soothing people's ruffled feathers,” says Thea Lee, head of the progressive Economic Policy Institute. Then again, Lee adds, the crises Biden inherited offer opportunities. “It certainly creates the space for building something new.” So, we will see. These are high-stakes policy decisions that producers should watch closely as the new Trade Regime is debated and begins to be implemented Washington Insider believes.
| Rural Advocate News | Friday February 5, 2021 |
December DMC Payments Triggered By Price Margins Dairy Margin Coverage (DMC) payments for December 2020 are triggered for some coverage levels as the national average margin for December was at $8.78 per hundredweight. That will trigger payments for Tier 1 margin trigger coverage levels of $9 of 22 cents per hundredweight and $9.50 margin trigger coverage levels of 72 cents per hundredweight. DMC payments are triggered when the difference between the National all milk price and the National average feed cost (the margin) falls below the producer selected margin trigger, ranging from Tier 1 from $4 to $9.50, and Tier 2 from $4 to $8, calculated monthly.
| Rural Advocate News | Friday February 5, 2021 |
Senate Adopts Organizing Resolution Allowing Committee Roles Set The Senate unanimously adopted an organizing resolution that sets the ground rules for a chamber evenly divided between the two parties and officially gives Democrats control of committees after two weeks of talks. The chamber is split 50-50, and Democrats hold the majority because Vice President Kamala Harris can break any tie votes. Senate Minority Leader Mitch McConnell, R-Ky., said the deal is almost identical to a 2001 agreement and “will allow the Senate to be fairly run as an evenly split body.” McConnell announced the Senate Republican committee assignments for the 117th Congress. He said newly elected Sens. Roger Marshall, R-Kan., and Tommy Tuberville, R-Ala., would join the returning members of the Senate Agriculture Committee, making a total of 11 Republican members.
| Rural Advocate News | Friday February 5, 2021 |
Friday Watch List Markets The first Friday of February brings out the U.S. unemployment report for January at 7:30 a.m. CST, along with the change in U.S. nonfarm payrolls and the U.S. trade deficit for December. Later Friday morning, USDA will release export data for several ag products and we'll be able to see the level of China's U.S. ag purchases in 2020. Traders will continue to watch for any export sales announcements and examine the latest weather forecasts. Weather Dry conditions are in store for most primary crop areas Friday. A bitter cold pattern with periods of snow and strong winds is indicated to cover much of the northern and central U.S. during the weekend. The cold pattern expands through the south and southeast during the next seven days.
| Rural Advocate News | Thursday February 4, 2021 |
Schumer Announces Senate Committee Assignments Senate Majority Leader Chuck Schumer announced Democratic Committee memberships this week. The announcement appoints Senator Debbie Stabenow of Michigan as Senate Agriculture Committee Chair. Stabenow also holds membership on the Senate Budget Committee, Finance Committee, along with the Environment and Public Works Committee. Delaware’s Tom Carper will chair the Senate Environment and Public Works Committee. Schumer also added New Jersey’s Corey Booker, Georgia Raphael Warnock, and Ben Ray Lujan of New Mexico to the Ag Committee. Booker is a self-described vegan and is critical of large-scale animal agriculture and farm checkoff programs. In 2016, he introduced the Commodity Check Off Reform Bill. In a press release this week, Booker stated, “Our food system is deeply broken,” adding, “Family farmers are struggling, and their farms are disappearing, while big agriculture conglomerates get bigger and enjoy greater profits.” Pennsylvania’s Bob Casey is leaving the Senate Ag Committee and will chair the Senate Aging Committee. Senate Republican leaders have yet to announce their committee membership appointments. ************************************************************************************ More Farmers Plan to get COVID-19 Vaccine A question in the Purdue/CME Group Ag Economy Barometer finds more farmers say they will get the COVID-19 vaccine. The Ag Economy Barometer for January, released this week, finds producers' attitudes about receiving a COVID-19 vaccine have shifted since the fall, with nearly six out of ten producers, 58 percent, planning to get vaccinated as soon as possible. Just 24 percent of producers said the same in October of last year. Still, 28 percent of farmers say they will not get the vaccine, compared with 37 percent in October. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers’ responses to a telephone survey. This month’s survey was conducted from January 18-22, 2021. Last month, the Kaiser Family Foundation COVID-19 Vaccine Monitor reported three in ten people in rural areas say they will "definitely get" the vaccine, compared to four in ten people in urban areas and suburban areas. ************************************************************************************ ERS: Rural Residents More Vulnerable to Serious COVID-19 Infections A new report from the Department of Agriculture’s Economic Research Service finds rural residents appear to be more vulnerable to serious infection or death from COVID-19. USDA says since the most recent surge beginning in late September, the highest case rates were in rural counties, particularly those that have no town larger than 2,499 residents. In late November and early December, infection rates in rural areas appeared to be slowing, while new cases in urban areas continued to grow. Rural COVID-19 deaths per 100 infections were 1.86 in the first two weeks of December, 48 percent higher than the corresponding urban rate of 1.26. USDA says the rural population appears to be more vulnerable to serious infection in several ways, including age and underlying medical conditions. The report says People may also be more vulnerable when they have difficulty accessing medical care, measured as lacking health insurance, or residing more than 32 miles from a county with an intensive care hospital. ************************************************************************************ R-CALF Organizing E-mail Blitz in Favor of COOL R-CALF this week urged ranchers to send emails to the White House in favor of Mandatory Country of Origin Labeling for beef. The organization issued an action alert saying, “emails needed this week to the White House and calls needed to congress for M-COOL.” Following the email, the organization asks members to call the White House, and tell their members of Congress the same line, “I’m a farmer/rancher/consumer and I need Mandatory Country-of-Origin Labeling for beef.” Tom Vilsack, the nominee for Agriculture Secretary under the Biden administration, said during his confirmation hearing, “I am absolutely willing to listen to anybody who has an idea,” regarding COOL. Responding to a question from Senator John Thune, a South Dakota Republican, Vilsack stated, "I would be happy to work with you and your staff on anything that would allow us to advance country of origin labeling.” The latest attempt at COOL was largely blocked by the World Trade Organization, which allowed Canada and Mexico to place punitive tariffs on the U.S. in response to COOL. ************************************************************************************ NMPF: 2021 Holds Promise National Milk Producers Federation President CEO Jim Mulhern says 2021 holds promise, with a big to-do list. In the new Congress, the organization seeks to advance dairy's needs within COVID-19 relief legislation. Meanwhile, child nutrition programs are up for reauthorization, offering a chance to maintain and expand dairy options in school meals and build upon the strong reaffirmation of dairy's nutritional value in the latest Dietary Guidelines for Americans, according to NMPF. On ag labor, Mulhern says all of agriculture continues to need legislation that provides permanent legal status for current workers, and dairy needs a guestworker program that meets its unique needs. Mulhern says climate-related legislation will give dairy the opportunity to advance the goals of the Net Zero Initiative that NMPF and partners launched in 2019 to reduce the sector's carbon emissions to net-zero by 2050 and improve water quality. NMPF published these policy priorities, along with others, on its website, www.nmpf.org. ************************************************************************************ Biofuels Groups Welcome GREET Act Reintroduction Growth Energy announced its support for legislation reintroduced Wednesday requiring the Environmental Protection Agency to update its greenhouse gas modeling for ethanol and biodiesel. Introduced by Senators John Thune, a South Dakota Republican, and Amy Klobuchar, a Minnesota Democrat, the bill would change EPA greenhouse gas modeling to "accurately reflect the greenhouse gas reductions achieved by biofuels." EPA would then be required to update its modeling every five years or report to Congress to affirm its modeling is current or otherwise explain why no updates were made. The Adopt Greenhouse Gas and Regulated Emissions and Energy Use in Transportation, or GREET Act, was previously introduced in the last session of Congress. Growth Energy CEO Emily Skor says, “updating the modeling at EPA is long overdue and necessary to fully reflect biofuels’ potential to decarbonize the transportation sector.” Meanwhile, National Corn Growers Association President John Linder stated, “This bill will ensure EPA uses the most recent science and data to accurately measure the greenhouse gas emission reduction benefits of ethanol.”
| Rural Advocate News | Thursday February 4, 2021 |
Washington Insider: Thinking About Inflation The New York Times published a retrospective on inflation this week, observing that there are growing signs just now, appearing in some business surveys, with companies looking to raise prices as they prepare for a post-pandemic economy. And they are apparent in the news media, from magazine covers to financial news segments. But there is little evidence of “actual inflation,” the Times says. “The Consumer Price Index in December showed only a 1.4% rise in prices over the last year. And top Federal Reserve officials made clear in recent days that they (still) view too-low inflation as the bigger risk to the economy, not soaring prices. How can one reconcile the inflation talk, with the absence of actual inflation? It's easier than you might imagine, the Times says. It “helps to think of types, rather than a single risk ahead.” In terms of significance, these range from mere “statistical anomaly” to a “huge shift” in the global economy. Each of these has different implications, both for how ordinary people making economic decisions should react and how policymakers, particularly at the Fed, should approach their work. One of the main concerns, of course, is that policymakers get it wrong and attempt to manage one inflation risk when another is the reality. The signs are hard to interpret, NYT says, so it discusses simple metaphors. “If we start to see higher prices later in the year, the first thing to ask is: Is this a story of “hungry bears emerging from hibernation; the result of excess water sloshing around a bathtub; or a balloon finally being reflated after years of leaking air?” And, there are misleading numbers to avoid. After the price of many goods and services collapsed between March and May last spring, lots of economic activity shut down. In many cases, those prices have recovered to close-to-normal levels making the basic trend lines of prices of those items appear extraordinarily high. For quite a few products and services, those numbers might look even more extreme. The price of home natural gas service is on track to be up 5.4%, with airline fares up 16.3%, and the price of women's dresses up a remarkable 17.9% — all reflecting the deep discounting retailers were forced to do in the spring of 2020. Those numbers appear to reflect inflation but only because of the conventions around using year-over-year data. For example, dress prices in that model might look like evidence of inflation when they are still 9% below pre-pandemic levels, the Times says. These calendar effects don't matter in any meaningful way, and Fed officials have said as much. Beware of anyone who might seek to use these numbers to create misleading narratives about the level of inflation in the economy, the Times warns. Also, what if “most everyone” emerges from economic hibernation at once? The supply of most services is pretty much fixed in the short run, and could be below pre-pandemic levels because of permanent business failures. This relative demand surge may lead retailers to raise prices to avoid shortages — a form of price inflation that also can happen through non-obvious ways, such as if a retailer that in normal times routinely offers 20% discounts stops doing so. This is another classic example of an inflationary surge that central bankers need to mostly ignore — to look through to longer-run trends. Price increases are how “the economy allocates a limited supply and encourages producers to invest in greater supplies. The price spikes may be a sign of the economy healing, not cause for inflationary panic. Then, the Times points to a number reported last week that “you might have missed.” JPMorgan Chase said its total deposits were 37% higher in the fourth quarter than a year before, a rise of $582 billion. It says this is a shocking rise in deposits, “but not exactly surprising if you've been following the economic data.” From March through November, Americans saved $1.56 trillion more than they did in the same period of 2019, reflecting a pullback in spending combined with federal spending that, in the aggregate at least, offset the loss of income from job losses. That is an enormous amount of money sitting in savings. So what happens if everybody starts spending at once, NYT asks. It's entirely possible that, as people become more confident, all that money could easily boost demand for goods and services until it outstrips supplies. This could be more like what happened in the 1960s, when a combination of high domestic and wartime spending pushed the economy to its productive limits. That created remarkable income growth for Americans but by the end of the decade inflation was rising and would become a major problem in the 1970s. Thus the Fed will have to decide whether what's happening is a desirable and long-awaited heating up of the economy, or something that's likely to spill out into sustained inflation. Fed Chair Jerome Powell has said he does not believe a 1970s-style inflationary cycle is likely. “Given the inflation dynamics we've had over the last several decades, just a single price-level increase has not resulted in ongoing price-level increases.” In addition, over the last three decades or so, the world economy began to work differently in nearly all advanced nations. The cause likely includes demographic shifts, the entry of billions more workers into the economy and a worldwide glut of savings. The basic story also would focus on the rapidly rising supply of labor in recent years as new technologies diminished the bargaining power of workers, holding down wage inflation. So, we will see. These are important questions that affect nearly all policy debates, especially those related to massive economic interventions. Certainly, producers should watch these closely as they proceed, Washington Insider believes.
| Rural Advocate News | Thursday February 4, 2021 |
Trump Administration's 'Terrorism' Label For Cuba Under Review A late announcement from the Trump administration was to declare Cuba a “state sponsor of terrorism.” The Biden administration promised a review of the Trump action. Secretary of State Tony Blinken confirmed the development in remarks with MSNBC's Andrea Mitchell. Cuba imports about $2 billion worth of ag commodities per year, but minor amounts come via the United States. However, Cuba is the fourth largest foreign market for U.S. poultry. U.S. rice producers have also eyed the market that is just 90 miles from the United States for their products, but have also not been able to build the market that they see possible in the island country.
| Rural Advocate News | Thursday February 4, 2021 |
Mandatory Country of Origin Labeling Still on Vilsack's Radar Mandatory Country of Origin Labeling (COOL), implemented and ended under USDA Secretary Tom Vilsack's first round at USDA under the Obama administration. And that issue resurfaced in his Tuesday session with lawmakers. Asked by Sen. Deb Fischer, R-Neb., about the Product of USA label deployed by USDA and whether it has evolved and kept up with consumer expectations, Vilsack said, “If it's the same policy as it was four years ago when I left, the answer is no. We made every concerted effort to try and create better transparency, better information for consumers because we understand and appreciate that consumers want to know where their food comes from. They want to know when they're buying U.S. and when they're not buying – when they're buying someplace – from someplace else.” Specifically on COOL, Vilsack responded to Fischer and to a separate question from Sen. John Thune, R-S.D., on the topic with the same refrain: “I am absolutely willing to listen to anybody and everybody who's got an idea about how we can circumvent or how we can get to a point where the WTO doesn't necessarily slap it down that creates retaliatory impacts on… on American agriculture.” And pushing ahead with COOL will prompt retaliation from Canada and Mexico, something Vilsack said was “not a good solution.” But any effort on the COOL front would have to be WTO compliant, he stressed.
| Rural Advocate News | Thursday February 4, 2021 |
Thursday Watch List Markets Thursday's reports begin with weekly export sales, weekly U.S. jobless claims, U.S. fourth-quarter productivity and an update of the U.S. Drought monitor, all at 7:30 a.m. CST. U.S. factory orders follow at 9 a.m. and the Energy Department reports on natural gas inventory at 9:30 a.m. Any export sales news and the latest weather forecasts continue to hold trader interest. Weather Cold conditions with snow and strong winds are in store for northern and central areas Thursday. Blizzard warnings are in effect in the western Midwest and wind chill bulletins through the weekend are noted in the northern Plains. This combination is unfavorable for transportation with safety hazards and livestock stress. In the southern Plains, strong winds are unfavorable for winter wheat.
| Rural Advocate News | Wednesday February 3, 2021 |
Vilsack Breezes Through Confirmation Hearing Joe Biden’s Agriculture Secretary nominee pledges to address discrimination across the Department of Agriculture. In the Senate Agriculture Committee confirmation hearing, Tom Vilsack told lawmakers he will also seek to remove barriers to access for anyone who qualifies for nutrition assistance. In his opening statement, Vilsack also vowed to ensure USDA is doing its part to end the COVID-19 pandemic, lead the federal government in building and maintaining new markets, stop the farm debt cycle and create transparency in pricing throughout the supply chain. Vilsack, who was Agriculture Secretary during the Obama administration, also seeks to restore USDA employee morale “to the high level it was” during his previous tenure at USDA. Incoming Committee Chair Debbie Stabenow, a Michigan Democrat, stated, “My last turn as Chair coincided with your first tenure at USDA, and I'm so happy to have the chance to work with you again.” The Committee advanced the nomination to the full Senate following the hearing. ************************************************************************************ Ag Economy Barometer Drifts lower The Ag Economy Barometer drifted lower in January to a reading of 167, a decline of seven points compared to December and equal to the index's November reading. Organizers say the barometer's decline over the last three months is attributable to weaker expectations for the future. The Index of Future Expectations has fallen 35 points or about 19 percent since October. The decline in future expectations stands in contrast to the Index of Current Conditions, which in January was 21 points, or about 12 percent, higher than in October. Ongoing strength in the Current Conditions Index appears to be driven by crop price strength. However, the deterioration in the Futures Expectations Index seems to be motivated by concerns about future environmental and tax policies and the outcome of the trade dispute with China. Meanwhile, three out of ten farms are aware of opportunities to receive carbon capture payments on their farms, and about one-fifth of those farms have engaged in discussions about contracting to receive payments. ************************************************************************************ Farm Bankruptcies Decline During 2020 Farm bankruptcies were down slightly in 2020, but an industry economist warns farmers are "not out of the woods yet." Caseload statistics from U.S. Courts indicate that Chapter 12 family farm and family fishery bankruptcies totaled 552 filings during 2020, down 43 filings, or seven percent, from 2019 third-highest over the last decade. American Farm Bureau Federation Chief Economist John Newton writes in a Farm Bureau Market Intel analysis, "these numbers should not be considered a sign that the farm economy has recovered." In 33 of the 94 district court regions, Chapter 12 bankruptcies increased from prior years. According to the Kansas City Federal Reserve, delinquency rates at commercial banks continue to increase, and USDA recently temporarily suspended debt collections, foreclosures and other activities on farm loans to support distressed farmer borrowers. Newton says the key to turning the farm economy around is a COVID-19 recovery, restored biofuels demand, increased trade, and new income sources, including adopting climate-smart practices and ecosystem services markets. ************************************************************************************ Meat and Poultry Workers COVID-19 Case Rates A new analysis of independent data for 2020 show that reported new COVID-19 infection rates amongst meat and poultry workers were five times lower in December than in May, while rates in the general population went up by nine times in the same period. According to data from the Food and Environment Reporting Network, the meat and poultry sector was reported to have an average of 32.64 new reported cases per 100,000 workers per day in January 2021, two-thirds lower than the average of 98.39 new reported cases per 100,000 workers per day in May 2020. Meat Institute President and CEO Julie Anna Potts commented, "Meat and poultry workers are substantially less likely to be infected with COVID-19 than the general population as a result of the comprehensive protections instituted since the spring of 2020." The data comes as the House Select Subcommittee on the Coronavirus Crisis launched an investigation into coronavirus outbreaks at meatpacking plants nationwide. ************************************************************************************ Growth Energy Battles in Court to Reverse Demand Destruction Biofuel groups last week filed a court brief challenging the Environmental Protection Agency’s failure to properly establish 2020 biofuel blending targets under the Renewable Fuel Standard. In their brief, the parties seek to ensure that the annual biofuel targets, or Renewable Volume Obligations, account for small refinery exemptions the agency issued for past years. EPA’s current regulations factor in only future SREs, while ignoring biofuel demand destroyed by past SREs granted retroactively, totaling more than four billion gallons in recent years. Growth Energy CEO Emily Skor stated, “The Trump EPA’s 2020 biofuel targets failed to account for the billions of gallons of demand lost to the agency’s mismanagement of the Renewable Fuel Standard.” Growth Energy and others also challenge EPA’s abuse of its waiver authority for cellulosic biofuel targets. Under the 2020 RVOs, the agency set cellulosic targets that did not account for 50 million credits carried over from past years. As a result, cellulosic targets were set at 590 million gallons. ************************************************************************************ Grants to Fund Dashboards to Track Food Supply Chain Vulnerabilities The Foundation for Food and Agriculture Research is awarding a $221,700 grant to Purdue University to research food supply chain disruptions. The grants allow for the creation of open-access online dashboards that help quantify and illustrate potential disruptions to the food supply chain. The dashboards will focus on COVID-19 but have the flexibility to be tailored to suit future market disruptions. Microsoft is providing matching funds for a $506,700 total investment, in addition to supplying cloud technology, business intelligence, artificial intelligence and machine learning tools. FFAR Executive Director Sally Rockey says the effort will provide policymakers “with the information needed to prevent bottlenecks and ensure food security.” The dashboards, organizers say, will improve public understanding of the origins of food and provide critical information for enhanced policy and industry-level decision making. With the data, food supply chain disruptions caused by COVID-19 and future disturbances can be identified before reaching catastrophic levels.
| Rural Advocate News | Wednesday February 3, 2021 |
Washington Insider: New Focus on Trade Enforcement Bloomberg is reporting this week that President Biden's administration is setting up its trade policy to prioritize enforcement of existing commitments by the U.S. partners over negotiating more deals to open new export markets. This likely strategy for supporting American producers focuses on going after violations via dialogue, work with allies and use of dispute-resolution mechanisms in existing trade agreements rather than following the Trump administration's more blunt, unilateral tool of national-security tariffs, Bloomberg said. That could leave existing free-trade talks with the UK and Kenya in limbo for the foreseeable future. Biden has signaled he won't immediately remove duties inherited from Trump, who enthusiastically dubbed himself “Tariff Man” for levying duties to pressure China, the European Union and even Mexico and Canada to address perceived injustices affecting American workers. Whether and how soon the President might remove the tariffs, and what he would seek in return, are open questions. But his approach to enforcement is likely to focus on negotiation, mediation and multilateral action rather than unilateral moves – more of a surgical than sledgehammer strategy, the report said. The administration's starting point may be the U.S.-Mexico-Canada Agreement that went into force in July, replacing the North American Free Trade Agreement (NAFTA). Katherine Tai, Biden's nominee for U.S. Trade Representative, was instrumental in negotiating that deal's labor provisions. The AFL-CIO, the largest U.S. labor union and a traditional Democratic ally, has been promising since September to bring the first complaint over conditions in Mexico. “We should expect action under the labor provisions of the USMCA pretty quickly,” said Jamieson Greer, a partner in the international trade practice at King & Spalding in Washington, who served as chief of staff to Trump USTR Robert Lighthizer. The new administration “is going to want to bring a case that's really targeted to a specific facility in Mexico that's as close to a slam-dunk case as you can get.” The AFL-CIO and Democrats made strong labor rules and enforcement mechanisms for Mexico a key demand to win their support for the USMCA in 2019, reflecting concerns that the pact it was replacing lacked both. Cathy Feingold, the AFL-CIO's international department director, said she hopes the union will be a petitioner in a labor complaint under the USMCA within the first 100 days of President Biden's administration after COVID-19 and other factors complicated the process of documenting ongoing labor violations in Mexico last year. U.S. labor unions have long complained that Mexican factories under NAFTA denied workers' rights in order to keep down salaries and unfairly undercut America on cost. The AFL-CIO has highlighted cases of alleged harassment, like the example of Susana Prieto Terrazas, an independent trade-union lawyer in Mexico who was jailed in the northern state of Tamaulipas last June after working to organize employees at an auto-parts plant. The USMCA went into effect in mid-2020. In November, Rep. Richard Neal, D., Mass., and Chairman of the House Ways & Means Committee, criticized the Trump administration for a lack of enforcement action. He cited union leaders and labor lawyers in Mexico facing violence, saying workers were being denied their basic rights on a daily basis. Under USMCA provisions, any member of the U.S. public can submit a petition alleging denial of rights at a facility in Mexico. An inter-agency U.S. committee then reviews to see if there's sufficient, credible evidence. If there is, the committee then requests that Mexico conducts its own probe. While there are a number of steps focused on remedying any violation, the U.S. ultimately can rescind duty-free treatment on products from a particular facility or even block imports altogether for repeated violations. Tai is awaiting a hearing from the Senate Finance Committee as part of her confirmation process. In a speech last month, she mentioned the USMCA's “groundbreaking labor and environment provisions” and promised to work to make sure the deal “lives up to its potential.” Both Treasury Secretary Janet Yellen and Commerce Secretary nominee Gina Raimondo in their hearings discussed enforcement with regard to another top U.S. trade partner – China. Tai was the chief lawyer for House Democrats seeking to strengthen the USMCA's labor provisions after President Trump's deal was initially reached with Mexico and Canada in 2018. Tai has also learned from the examples of past U.S. failures, Feingold said. That includes Guatemala, where the first-ever labor complaint filed under a free-trade deal was brought by the AFL-CIO and local unions in 2008 over the nation's failure to ensure the right to organize and acceptable working conditions. The case dragged out for almost a decade, ending with an arbitration panel deciding that the evidence failed to prove Guatemala's behavior was “sustained or recurring” and “in a manner affecting trade.” In the USMCA, Democrats negotiated to ensure that violations in Mexico would be assumed to affect investment unless proven otherwise, and the need to show “sustained or recurring” violation doesn't apply to workplace violence. Tai “has a vision for what went wrong in the past,” Feingold said. “She was key to building that model of swift and effective enforcement.” So, we will see. The Biden administration clearly has a more conventional trade policy orientation than the previous administration did, but it likely will be tested early and often by high stakes cases involving the EU, China and others. These are fights producers should watch closely as they proceed, Washington Insider believes.
| Rural Advocate News | Wednesday February 3, 2021 |
Biden Administration Asks Courts to Pause Litigation Over Trump WOTUS Replacement The Biden administration has filed requests in U.S. District Courts in Maryland and Washington, D.C., requesting a pause in litigation over the Navigable Waters Protection Rule put in place by the Trump administration as a replacement to the Obama-era Waters of the U.S. (WOTUS) rule. The administration signaled immediately upon taking office that it was reviewing the Trump actions on the rule and has sought a six month delay in court actions, arguing that will allow the Biden administration “adequate time to review the rules and determine whether the rules should be maintained, modified, or otherwise reconsidered.” The administration pledged to provide an update in 90 days and at the end of the six-month period, the parties are to provide a “joint status report proposing further proceedings.” In the wake of the court filings, Reps. Peter Defazio, D-Ore., and Grace Napolitano, D-Calif., called on President Joe Biden to immediately repeal the Trump administration rule, charging it is “fatally flawed proposal, with no basis in the law, no basis in the science, and a blatant giveaway to polluters.” U.S. ag interests are monitoring the situation closely as many groups marshalled resources to get the WOTUS rule replaced due to their contention that it was a case of government overreach and would subject a large amount of area to federal regulation. Given the filings in court, it is clear the Trump administration rule will not be immediately repealed as requested by the lawmakers.
| Rural Advocate News | Wednesday February 3, 2021 |
House Panel Investigating Meat Packing Companies Over COVID-19 Smithfield Foods, Tyson Foods and JBS USA are being investigated by the House Select Subcommittee on the Coronavirus Crisis over COVID outbreaks at their facilities and what the panel said was a failure of the companies to protect workers. The panel sent letters Monday to the companies and the Occupational Safety and Health Administration (OSHA) requesting information on their actions during the COVID pandemic relative to complaints from workers, how the companies track those complaints, all documents related to inspections by federal or state officials at facilities and a list of those inspections, the number workers that have contracted COVID or died from it, information on plant closures, implantation of COVID safety measures and more. The panel is seeking similar information from OSHA, including a list of each COVID-related complaint received, a list of inspections and any documents linked to those inspections, the training and guidance OSHA gives to inspectors, and more. Meatpackers "have refused to take basic precautions to protect their workers, many of whom earn extremely low wages and lack adequate paid leave and have shown a callous disregard for workers' health," panel chair Rep. James Clyburn, D-S.C. The companies issued statements in response to the investigation, with Smithfield countering they have invested "$200 million in health and safety interventions, more than $160 million in bonuses and permanent increased pay, and donated more than $50 million to support our local communities.” They also pointed to extra practices put in place in their plants relative to worker safety. It's not clear what the results of the investigation will bring or the timeline given the volume of documentation the panel is requesting of OSHA and the companies in question.
| Rural Advocate News | Wednesday February 3, 2021 |
Wednesday Watch List Markets ADP's report of U.S. private sector job gains in January is due out at 7:15 a.m. CST, an early hint of the U.S. nonfarm payrolls report on Friday. The U.S. Energy Department releases its weekly report of energy inventories, including ethanol at 9:30 a.m. Traders will also be watching the latest weather forecasts and any export sales news that develops. Weather Dry conditions are in store across the central U.S. Wednesday. Temperatures will be seasonal to above normal. The pattern turns very cold with snowstorm and blizzard conditions in northern and central areas Thursday.
| Rural Advocate News | Tuesday February 2, 2021 |
Speculation Developing Over How Biden Will Use Commodity Credit Corporation Speculation is brewing over how the new Biden administration may use the Commodity Credit Corporation. The CCC, as it’s known, was used by the Trump-era Department of Agriculture to provide trade relief to farmers, including Market Facilitation Program payments. The CCC has a $30 billion fund, with several ideas on how to use the funding, setting up a "tug of war over its limited resources," according to Politico. Incoming Agriculture Secretary Tom Vilsack has indicated that he has the authority to implement a carbon bank for farmers through the CCC. President Joe Biden's stimulus plan also identified the CCC as a means to provide economic relief for restaurants suffering during the pandemic. Meanwhile, Senate Agriculture Committee Chair Debbie Stabenow, a Michigan Democrat, told reporters last week, farmers can be leaders in the climate crisis. She says her focus will be on “voluntary, producer-led opportunities” to allow farmers to cut down emissions and create new income sources. ************************************************************************************ UK Applies to Join CPTPP The United Kingdom seeks to join the Comprehensive and Progressive Trans-Pacific Partnership. The CPTPP is the trade agreement between former Trans-Pacific Partnership nations after then-President Donald Trump withdrew the U.S. from TPP. Officials from the UK made the request Monday with planning to begin formal negotiations this year. Officials say joining the CPTPP would deepen the UK’s access to fast-growing markets and major economies, including Mexico, Malaysia and Vietnam. UK Prime Minister Boris Johnson stated, “One year after our departure from the EU, we are forging new partnerships that will bring enormous economic benefits for the people of Britain." The United States has been seeking a bilateral trade agreement with the UK since BREXIT, under the Trump Administration. In a phone call with President Joe Biden, Prime Minister Johnson sought to "resolve existing trade issues as soon as possible.” However, Biden’s focus is on domestic issues for now, and Biden also wants to evaluate rejoining the former TPP countries in CPTPP. ************************************************************************************ Philippines Considering Reducing Pork Import Tariffs The Philippines' government plans to hold a hearing this week to discuss a proposal to reduce its pork tariffs for in-quota and out-quota imports. Specifically, the country's Department of Agriculture recommends pork imports under the minimum access volume have a five percent tariff for the next six months and a ten percent tariff for the succeeding six months, compared to the current 30 percent tariff. For pork imports outside the minimum access volume, the Philippines proposes tariffs be reduced to 15 percent for the next six months and 20 percent in the succeeding six months, compared to the current 40 percent. The National Pork Producers Council welcomed the proposal. NPPC last month met with the U.S. Ambassador to the Philippines to discuss trade. NPPC has been working with the Philippines’ government for more than a year to negotiate lower pork import tariffs, saying the nation “holds tremendous market opportunities for U.S. pork exports.” The Philippine Tariff Commission plans to consider the proposal Thursday. ************************************************************************************ United States Cattle Inventory Down Slightly A report on U.S. cattle inventory shows 93.6 million head of cattle and calves on U.S. farms as of January 1, 2021, slightly below the 93.8 million last year. The Department of Agriculture's National Agricultural Statistics Service published the data Friday. Of the 93.6 million head inventory, all cows and heifers that have calved totaled 40.6 million. There were 31.2 million beef cows in the United States, down one percent from last year. The number of milk cows in the United States increased to 9.4 million. The 2020 calf crop in the United States was estimated at 35.1 million head, down one percent from the previous year's calf crop. All cattle on feed were at 14.7 million head, up slightly from 2020. NASS surveyed over 34,900 operators across the nation during the first half of January. Surveyed producers were asked to report their cattle inventories and calf crop for the entire year of 2020. ************************************************************************************ USDA Forest Service Announces 2021 Grazing Fee The Department of Agriculture's Forest Service recently announced federal grazing fees on national forests and grasslands will remain $1.35 per head month for 2021. A head month is a unit the Forest Service uses to define a month's use of the range by a cow/calf pair, by five goats or sheep, or by a single bull, steer, heifer, horse, burro, or mule. The grazing fee is calculated by considering the average annual change in beef cattle prices, leasing rates for grazing on private land in the western states, and livestock production costs. The fee applies to approximately 6,000 grazing permits administered by the Forest Service on national forests and grasslands in 17 Western states. The formula used for calculating the grazing fee was established by Congress in the 1976 Federal Land Policy and Management Act and as amended in the 1978 Public Rangelands Improvement Act and has continued under a presidential executive order issued in 1986. ************************************************************************************ Bunge Announces Agreements to Use Renewable Energy Bunge just announced a 10-year agreement with Direct Energy Renewable Services to use renewable energy at its Fort Worth, Texas oils packaging facility. The initiative will offset 100 percent of Bunge's power usage in that location with an equivalent amount of Renewable Energy Credits derived from Texas wind power. Beginning in August of 2021, Bunge's Fort Worth plant energy will be sourced from a local wind farm. The agreement is part of a broader effort by Bunge to reduce emissions and energy in target amounts by 2026. Bunge recently made additional strides in its sustainable energy journey by achieving 100 percent renewable electricity powered by wind at its corn mill in Atchison, Kansas and its soybean processing plant in Emporia, Kansas. In 2019, Bunge signed a long-term contract with Evergy for eight percent of their total wind farm in Nemaha County, Kansas. Besides these locations in Kansas, Bunge's soybean processing plant in Council Bluffs, Iowa, gets over 60 percent of its electricity from wind power.
| Rural Advocate News | Tuesday February 2, 2021 |
Some Regulatory Actions Emerging From Biden Administration The initial flurry of regulatory actions by the Biden administration has been to withdraw regulations that were not finalized by the Trump administration. The White House has sent forward for review by the Office of Management and Budget (OMB) notices or regulatory actions to require the wearing of masks on public transportation and in stations, ports or similar transportation hubs, a temporary halt in residential evictions — both from Health and Human Services — and a delay in the effective date of the Trump administration's final rule limiting regulatory science that was issued by EPA. A federal judge had also put a halt to the EPA rule. The new administration has embarked on a broad regulatory review of actions by the Trump administration which has resulted in some regulations or actions being either halted or suspended by several agencies.
| Rural Advocate News | Tuesday February 2, 2021 |
White House Reviewing US-China Phase One Agreement The Biden administration is reviewing the U.S.-China Phase One agreement, White House spokeswoman Jen Psaki confirmed to reporters Friday. The new administration is approaching the U.S.-China relationship “from a position of strength, and that means coordinating and communicating with our allies and partners about how we're going to work with China,” she said. “Everything that the past administration has put in place is under review, as it relates to our national security approach, so I would not assume things are moving forward.” This sparked concern that the Biden administration could walk away from the Phase One agreement, but Doug Barry, spokesman for the U.S.-China Business Council downplayed those worries. “We don't read too much into the process at this point,” Barry told Reuters. “China has 11 more months to fulfill its promises to purchase an additional $200 billion in U.S. products.” The review is not a surprise and matches what sources signaled months ago would take place under the Biden administration. Plus, the agreement's purchase commitments cover two years — 2020 and 2021 — and other actions in the agreement have already been implemented relative to U.S. agriculture and other trade matters which have seen China undertake structural changes that would negatively impact prospects for U.S. agricultural and other trade.
| Rural Advocate News | Tuesday February 2, 2021 |
Tuesday Watch List Markets As usual, traders will be watching the latest weather forecasts and checking for any news of export sales. There are no official reports scheduled Tuesday, allowing plenty of room for Punxsutawney Phil to get his annual moment in the spotlight. Weather Tuesday will be dry across all primary crop areas. Temperatures will be seasonal to below normal in the Midwest, below normal Southeast, and above normal in the Plains. Areas that have seen heavy snow recently will also have fog hindering transport and safety due to melting snow. A new rain and snow event is again indicated to cross the north-central U.S. Thursday.
| Rural Advocate News | Monday February 1, 2021 |
Oil Industry Seeking Unusual Alliance in Farm Country The U.S. oil industry is looking to a longtime adversary for help in opposing the Biden administration’s push for electric vehicles. Reuters says the oil industry is reaching out to the nation’s corn growers and biofuel producers for lobbying help, but so far, they’re getting a cool reception to the idea. Multiple sources tell Reuters that the oil industry reaching out to their longtime opponents shows the scale of its concern over President Biden’s measures to combat climate change by pulling back on the use of liquid fossil fuels. The two industries have one thing in common; a shared desire to make sure there’s a future for internal combustion engines. The political landscape is quite different as the oil industry’s influence has dropped off since Biden replaced Donald Trump as president, but the farm belt is still a powerful constituency. The American Fuel and Petrochemical Manufacturers, an oil refining trade group, confirmed to Reuters that it’s been contacting state and national representatives of the corn and biofuel trade groups in past weeks. Their goal is to garner support for a policy that would reduce the carbon intensity of transport fuels and block efforts to provide more federal subsidies for electric vehicles. ************************************************************************************ South African H-2A Workers Get Exemption to Travel Ban The U.S. State Department issued a clarification on its ban on non-citizens entering the United States from South Africa. A Biden administration proclamation suspended travel from several countries due to COVID-19 concerns. The State Department clarified that agriculture workers entering the U.S. qualify for the national interest exception on a case-by-case basis. The American Farm Bureau recently sent a letter to Secretary of State Antony Blinken earlier this week requesting an exemption for South African farm labor. “We appreciate the swift action by the State Department to address a critical need for American agriculture,” says AFB President Zippy Duvall. “Farmworkers from South Africa bring a valuable and unique skill set to the farms where they work. America’s farmers rely on the H-2A program to provide a robust workforce, and we are committed to ensuring their safety while continuing to provide healthy, affordable food for American families.” President Biden’s proclamation allows non-citizens to be exempt from the ban if their arrival is in the national interest. Food and agriculture workers have been deemed essential during COVID-19. ********************************************************************************************** Rural Coalition Sends Letter to Biden on Infrastructure The Rebuild Rural Coalition, consisting of more than 250 groups, sent a letter to the Biden administration asking that it make sure to put enough resources for rural needs into its infrastructure plan. The coalition represents groups that include U.S. agricultural producers, rural businesses, rural communities, and rural families. The letter says the infrastructure system has a staggering number of needs. “For example, one-quarter of our road system’s bridges require significant repair or cannot efficiently handle today’s traffic,” the letter says, “and many of the 240 locks and dams along the inland waterways need modernization.” They say critical needs also exist when it comes to providing clean water and affordable housing for rural families, expanding broadband to connect rural communities to the outside world, and enhancing the ability to supply reliable and secure power. They also say the scope of the investment need is staggering as well. “Clearly, the federal government must continue to play an important role in providing funding, and those federal investments should increase,” they add. “However, as your plan also suggests, federal resources alone can’t fill the void.” They’re looking for creative solutions that pair federal investments with state and local government dollars, as well as private sources of capital. ********************************************************************************************** USGC Virtual Member Meeting Takes Place This Week The U.S. Grains Council’s 18th annual International Marketing Conference and the 61st Annual Membership Meeting is set virtually for Monday through Wednesday of this week. A couple of the more important conversation topics will be the future of trade and the U.S. Grains Council's strategy to capture overseas demand. “We have the opportunity to join together to discuss critical issues surrounding our work to build new demand for coarse grains and co-products,” says Jim Raben, USGC Chair and an Illinois farmer. “We are also excited to offer an excellent slate of speakers who will focus on the future of trade and the opportunities that exist for increased demand around the world.” During the three-day conference, the USGC’s Advisory Teams will review priorities in the Council’s Unified Export Strategy and help to set a direction for the year ahead. Sectors will meet to discuss important issues specifically for corn, barley, and sorghum producers, as well as agribusinesses and general farm organizations. “Our members are the heart of the Council,” says Rabe. “While the format is different, critical input through participation in this meeting will continue to guide the work of our leadership and staff around the world.” *********************************************************************************************** National Farm Machinery Show Postponed to 2022 The National Farm Machinery Show and Championship Tractor Pull will be moving to February 16-19, 2022. Despite initially planning to continue the shows in March, the ongoing uncertainty surrounding COVID-19 has led show management to make the difficult decision to postpone events until next year. “The health and safety of our guests, exhibitors, and coworkers is our highest priority and unfortunately the best way to keep them safe is to postpone the show,” says David Beck, the President and CEO of Kentucky Venues. The National Farm Machinery Show is held every year at the Kentucky Exposition Center and is the largest indoor farm show in the country. It consists of 12 million square feet of sold-out exhibit space. The show is a key player in the global agriculture industry featuring the most comprehensive display of equipment, services, and technology. The Championship Tractor Pull held in conjunction with the farm show draws more than 70,000 fans in person and online from around the world. “We look forward to welcoming everyone back in 2022,” Beck says. “We’ll take the lessons learned in 2020 and 2021 and plan a comprehensive show with relevant seminars and educational content alongside the newest in state-of-the-art farm equipment.” ********************************************************************************************** Export Sales of Corn and Wheat Rise Corn and wheat export sales jumped higher week-to-week while soybean sales dropped. The USDA says corn sales to overseas buyers in the seven days that ended on January 21 came in at 1.85 million metric tons, up 29 percent from the previous week and 61 percent from the prior four-week average. Japan was the biggest buyer of corn, purchasing 695,000 metric tons, followed by Mexico at more than 145,000 tons, and Colombia at almost 117,000 tons. Wheat sales rose 15 percent over the previous week to 380,500 metric tons, which is also 13 percent higher than the four-week average. China bought 130,000 metric tons of wheat, while Mexico purchased 67,400 tons, Japan bought just shy of 61,000 tons, South Korea 54,000 tons, and the Philippines 53,4000. Soybean sales slipped 74 percent from the prior week, coming in at 466,000 metric tons, 45 percent below the four-week average. China was the biggest buyer at 322,500 metric tons, followed by Mexico at 197,800 tons. For the 2021-2022 marketing year that starts on September 1, the government reported sales of 1.56 million metric tons of U.S. soybeans. Unknown destinations bought 654,000 metric tons, while China took in 586,000 tons.
| Rural Advocate News | Monday February 1, 2021 |
Washington Insider: Astra-EU Fight Opens Rift in Global Bid to End Pandemic Bloomberg is reporting this week that a European dispute over access to COVID-19 vaccines is threatening to unleash a wider political and economic conflict that could stymie global collaboration needed to end the pandemic. After accusing UK vaccine maker AstraZeneca Plc of favoring deliveries to its home country, the European Union announced a drastic plan to control exports of COVID shots. The retaliatory move may encourage more governments to use economic might or other means to protect their interests. The European Commission's restrictions “open Pandora's box,” said Simon Evenett, a professor of international trade at the University of St. Gallen in Switzerland. If others respond in similar fashion, “it really would be every man for himself.” The squabble is opening a new rift in the global effort to slow a pathogen that's killed 2.2 million people and inflamed Brexit tensions between the UK and the EU. The bloc is already under pressure to speed up an immunization campaign that's trailing those in Britain and the U.S. In a sign of how fraught tensions have become, the bloc also announced Friday that it was seeking to limit exports to Northern Ireland, before retreating from the plan hours later. Introducing restrictions between the Republic of Ireland, which is part of the EU, and Northern Ireland would contravene one of the key principles of the Brexit deal, which sought to avoid border controls after decades of violence. The EU move prompted a rare show of unity from traditional political enemies in Northern Ireland, who uniformly decried the initial decision. Even with the Northern Ireland issue resolved, the bloc's actions remain hugely controversial and have been criticized by the World Health Organization, businesses and governments, Bloomberg said. The likelihood of such vaccine disputes multiplying looms large after dozens of countries imposed export restrictions earlier on masks, personal protective equipment and medical supplies. Governments and companies also tussled over access to drugs like new, life-saving HIV medications that were too costly for some hard-hit countries to purchase, said Thomas Bollyky, director of the global health program at the Council on Foreign Relations. This is not just a fanciful parade of horribles,” he said. “You could see this escalating.” In a show of unity, most European countries started vaccinations around the same time in late December. Recent U.S. re-engagement with the World Health Organization also spurred hopes of global cooperation. But maintaining that isn't easy in an environment of increasing infections and vaccine supply constraints. As political pressure rises, “that feeling of solidarity fades,” said Klaus Stohr, a former WHO official who helped mobilize governments and drug makers to prepare for pandemics. The stakes of getting economies back on track have also grown. Access to vaccines has become a matter of national security, said J. Stephen Morrison, director of the Center for Strategic and International Studies' Global Health Policy Center. That accounts for the U.S. Department of Defense's important role in developing and distributing shots. “Vaccines are an indispensable element of getting out from under this scourge that's destroying economies,” he said. “If you can't get to herd immunity fast, that inevitably provokes a security crisis.” Biden has said he'd use the Defense Production Act, a Cold War-era law, to boost the manufacturing of vaccines and the supplies required to administer them, such as vials and needles. If the U.S. were to combine that expanded production with export restrictions, other governments would be tempted to follow, Evenett said. The EU's drug regulator cleared AstraZeneca's COVID shot Friday, paving the way for a conditional marketing authorization and potentially easing supply concerns. Still, frustrations are running especially high across Europe as more contagious versions of the virus emerge, and every step of COVID vaccine production and distribution is under scrutiny. The EU may secure enough supplies to vaccinate three-quarters of its population by late October, hitting that level more than two months after the U.S. and three months behind the UK, according to the latest analysis by London-based research firm Airfinity Ltd. While there are few restrictions on using export bans in trade law, nations could try to tamp down on vaccine-related retaliation via the G-7 or the G-20, as has been suggested by the Ottawa Group, Bollyky said. Those nations in November called for restraint in using any export restrictions as part of wider measures in response to the pandemic and discouraged WTO members from putting tariffs on essential medical products. Companies could also help defuse the tension by providing more details about their production plans, Evenett said. Bowing to pressure, AstraZeneca published its contract for the delivery of doses to the region. “Guidelines would be a way of preparing – they won't help you in an ongoing dispute,” said Harvey Fineberg, former president of the U.S. National Academy of Medicine. Attempts to set rules for sharing vaccines “would only be interpreted in light of who it would advantage now.” So, we will see. The instinct toward protectionism remains strong and can threaten most trading strategies in some cases — decisions that often have severe long-term implications. So, the posture of the new administration toward global cooperation should be watched closely as joint efforts proceed, or fail to develop, Washington Insider believes.
| Rural Advocate News | Monday February 1, 2021 |
WOTUS Remains a Key Issue Ahead The issue of the Waters of the U.S. (WOTUS) rule continues as a potential action point for farmers and ranchers. The Biden administration January 20 said that EPA and the Defense Department would review The Trump administration's narrow federal waters definition under their Navigable Waters Protection Rule (NWPR). Biden also signed a separate executive order revoking a 2017 Trump order calling for a review and reversal of the Obama rule. The Trump rule prevents developers from needing a federal permit for work in those waterways. The rule is in effect in every state except Colorado, where a judge blocked it. Both the Obama and Trump-era rules are being challenged in court. This will likely result in opponents asking the courts to set aside expected Biden administration requests to stay pending litigation and allowing the lawsuits to continue. The Biden administration is expected to ask courts to put WOTUS litigation on ice to give the EPA and the Army Corps of Engineers time to decide if and how to rewrite the Trump administration rule. Others note the issue is likely again headed to the Supreme Court for more clarity.
| Rural Advocate News | Monday February 1, 2021 |
Stabenow Applauds USDA Pausing CFAP Payouts Senate Ag Committee Chair Debbie Stabenow, D-Mich., is welcoming the review of the Coronavirus Food Assistance Program (CFAP) that has suspended payment activity under the program. Stabenow said the Trump administration plan did not address provisions in the final legislation calling for assistance for farm workers, smaller food processors and others involved in the supply chain. “I very much want to see them evaluate where we are,” Stabenow said. “I'd like to have them look at what we wrote into the law that has not yet been acted on. A review makes sense.” It is not clear how long the suspension will last but the agency will continue to accept applications.
| Rural Advocate News | Monday February 1, 2021 |
Monday Watch List Markets There are few government economic reports on Monday, but manufacturing PMI and ISM manufacturing index are two to watch. DTN will also be focused on any new China purchases of U.S. corn or soybeans, and any South American weather changes. Weather Dry conditions will cover most primary crop areas Monday. The exception will be the extreme eastern Midwest where snow will occur. Temperatures will be seasonal north and central, below normal southeast, and above normal southwest.
| Rural Advocate News | Friday January 29, 2021 |
Stabenow Announces Senate Ag Committee Agenda Incoming Senate Agriculture Committee Chair Debbie Stabenow laid out her agenda for the committee Thursday. The Michigan Democrat says, "My vision for the committee revitalizes our food and farm economy to grow new opportunities in American agriculture and provide access to healthy food for American families.” Stabenow says the committee will build on past bipartisan achievements to strengthen the diversity of agriculture, support the millions of jobs in the farm and food economy, protect land and water, strengthen small towns and rural communities, and support families working hard to make ends meet. The agenda includes responding to COVID-19 to address hunger and the food supply chain, and address climate change with voluntary, producer-led, bipartisan solutions. Additionally, Stabenow seeks to fight childhood hunger with stronger nutrition programs, and create jobs and improve the quality of life in rural America. Stabenow says the committee will fill key leadership positions at the Department of Agriculture and lay the groundwork for the next bipartisan farm bill. ************************************************************************************ Senators Seek Guidance for Farmers Applying for PPP Loans A pair of U.S. Senators want the federal government to issue guidance excluding Coronavirus Food Assistance Program payments from farmers’ and ranchers’ 2020 gross receipts for purposes of obtaining a second draw loan through the Paycheck Protection Program. Senators John Thune, a South Dakota Republican, and Tammy Baldwin, a Wisconsin Democrat, made the request in a letter to the Department of Treasury and the U.S. Small Business Administration. The Senators refer to the interim final rule on the PPP loans released in early January. In outlining how businesses must demonstrate a 25 percent reduction in gross receipts in 2020 compared to 2019, the interim final rules state that forgiven first draw PPP loans do not count toward gross receipts. However, the Senators say the rules are silent on whether or not Coronavirus Food Assistance Program payments count towards farmers’ and ranchers’ 2020 gross receipts for purposes of demonstrating a 25 percent reduction in receipts in 2020 compared to 2019. ************************************************************************************ NCBA Welcomes House Introduction of Bipartisan DIRECT Act The National Cattlemen’s Beef Association hailed the introduction of bipartisan legislation to create new opportunities for cattle producers and processors to market beef products. The Direct Interstate Retail Exemption for Certain Transactions, or DIRECT Act of 2021, would allow retail quantities of meat processed under state-inspection to be sold across state lines through e-commerce. NCBA Policy Division Chair Todd Wilkinson says, "The DIRECT Act will allow cattle producers and smaller beef processors to more easily evolve to meet the growing demand for e-commerce sales." Many states currently have inspection programs approved by the Department of Agriculture's Food Safety and Inspection Service as “at least equal to” federal standards. However, state-inspected products can only be sold interstate if approved to do so under the Cooperative Interstate Shipping Program. The DIRECT Act would amend the retail exemption to allow processors, butchers, or other retailers to sell normal retail quantities of State Inspected Meat online to consumers across state lines. ************************************************************************************ Organic Groups Seek Swift Finalization of Origin of Livestock Rule A coalition of organic groups urges the Department of Agriculture’s National Organic Program to finalize the Origin of Livestock rule. In a letter to the acting Agriculture Secretary, the groups say, “We need a strong, enforceable Origin of Livestock rule as soon as possible.” The letter, signed by 118 organic organizations and 249 organic farmers from across the nation, strongly urges the Secretary of Agriculture to oversee finalization of the origin of organic livestock rule and ensure that the rule is enforceable. Last June, USDA's National Organic Program missed a deadline Congress set for the NOP to finalize the long-awaited rule. Organic Farmers Association Executive Director Kate Mendenhall says, “Organic dairy farmers have been left behind by the NOP, and the years of broken promises of fixing this regulatory loophole have been devastating.” The organic groups say that each month that goes by without implementation of this rule “puts more family organic dairy farmers out of business across the country.” ************************************************************************************ CoBank: Uneven Foodservice Recovery Implies Same for Animal Protein As COVID-19 spread across the country last year, it spurred the "great grocery grab of 2020" - a shift to at-home food consumption not seen since the early 1980s. The abrupt change also forced the most significant shift in meat supplies the industry has experienced, diverting massive volumes of meat and other food originally intended for restaurants into retail distribution channels and grocery stores. U.S. animal protein supplies have returned to normal, and foodservice sales have improved since the onset of the pandemic but may not return to pre-pandemic levels until the second half of 2022, according to a new report from CoBank's Knowledge Exchange. A CoBank spokesperson says the trends in demand “are central to the profitability and viability of the U.S. animal protein supply chain.” The beef and pork sectors have some flexibility to adapt, as major packers sell their products to a variety of retail, foodservice and export customers. In the poultry sector, however, many integrators and poultry plants focus either on retail or foodservice, but not necessarily both. ************************************************************************************ Army Corps to Repair $54 Million of Missouri River Navigation Channel The U.S. Army Corps of Engineers 2021 civil works plan includes approximately $54 million for the repair of navigation structures along the Missouri River. The structures were damaged from high water and flooding over the past three years. The funding will address the highest priority repairs which pose an imminent threat to the navigation channel function, or significantly jeopardizes nearby critical facilities, structures, or property. The large volume of water that has passed through the system has damaged hundreds of river structures from Sioux City, Iowa, to St Louis. Those structures are critical and provide for a stable navigation channel when river conditions are within the lower range of operational flows. The 2020 navigation season, which saw a lower water year on the river, was challenged by shoaling in the navigation channel. The Corps of Engineers intends to restore full capacity and system reliability to pre-flood conditions providing that funding is appropriated and available.
| Rural Advocate News | Friday January 29, 2021 |
Washington Insider: Easy Money to Continue Bloomberg is reporting this week that Fed Chair Jerome Powell declared once again that the battle against COVID-19 is not over and that the Fed will work to keep the monetary spigots wide open to aid the pandemic-hit economy. He continued to brush aside concerns the super-easy stance will spawn a stock market bubble and too-high inflation. “We have not won this yet,” he told a press conference on Wednesday, after the Fed voted to keep short-term interest rates pegged near zero. “We're a long way from a full recovery.” Powell frequently referred to the poor condition of the labor market even as reporters asked about the meteoric rise of GameStop Corp. shares and frothy stock market prices. He spoke fervently about the plight of those whose lives have been upended by the virus, repeatedly pointing to the 9 million Americans still without jobs as a result of the pandemic. “He's doubling down on the human angle,” said Priya Misra, global head of rates strategy at TD Securities. “His job isn't to get the stock market to a certain level, it is to get to full employment and he doesn't see a risk of inflation overshoot.” It was a message for some Fed officials who have entertained the notion that the recovery could be stronger than expected, requiring the Fed to start pulling back on asset purchases this year. It was also a signal to the new administration that the Fed shares its goal of getting Americans back to work as quickly as possible and spreading the benefits of a tight labor market to Blacks and other groups frequently left behind. As Powell spoke, stock prices slumped, suffering their biggest losses since October on growing concerns that the rapid rise of equities in recent months had left them overvalued. The Fed chairman declined to comment on the price gyrations in GameStop, a video-game retailer that has seen its market value skyrocket as a surge in retail buying has forced hedge funds to cover their short positions in the stock. Democratic Senator and former presidential candidate Elizabeth Warren of Massachusetts cited the frenzy around GameStop in pressing the administration of President Joe Biden to crack down on Wall Street. “It's long past time for the SEC (Securities and Exchange Commission) and other financial regulators to wake up and do their jobs – and with a new administration and Democrats running Congress, I intend to make sure they do,” she said. While Powell steered clear of commenting on GameStop, he evinced little concern about the broad-based run-up in stock prices, saying the Fed's focus is on the resilience of the financial system as a whole. “Financial stability vulnerabilities overall are moderate,” he said. Although the Fed theoretically could raise interest rates to try to head off a stock market bubble, that's not something it has ever done or plans to do, he added. The Fed chairman also played down worries about a spike in inflation as the economy enjoys what could be strong second half growth with newly vaccinated Americans returning to restaurants, movie theaters and sporting events. While some increase in inflation is likely, it probably won't be large or long-lasting, according to Powell. “We're going to be patient” and not pull back on support for the economy on the first sign of stepped-up price pressures, he said. In that regard, Powell said it was premature to talk about tapering the Fed's massive purchases of U.S. Treasury and mortgage-backed bonds, saying it would take “some time” to achieve the threshold for reducing them from their current clip of $120 billion per month. That's good news for the Biden administration, which is pushing for Congressional passage of a $1.9 trillion stimulus package that would greatly increase the supply of U.S. Treasury debt. Bloomberg added that “Powell considers falling short of a full recovery as a much more significant risk compared to the possibility of higher inflation. This is in line with his recent public comment that now is not the time to talk about a policy exit. Instead, it confirms our assessment that the central bank stands ready to provide additional support to the economy, primarily through even more aggressive asset purchases.” Powell, who's received the first vaccination of two against the virus, said the Fed remained focused on the downside risks to the outlook and the danger that the pandemic will leave lasting scars on the economy. “Even after the economy fully reopens, I think we are still going to need to keep people in mind whose lives have been disrupted because they've lost the work that they did,” Powell said. “It would be wise for the longer run productive capacity of the country if we were to look out for those people and help them find their way back into the labor force even if means continuing support for an additional period of time.” For Brett Ryan, senior U.S. economist with Deutsche Bank AG, “The message was simple. They are going to keep pedal to the metal,” he said. “They are not going to use monetary policy as a tool to pop bubbles in asset markets.” So, we will see. The political scene is fully as toxic as it has been recently and economic and monetary policies are playing a central role in that outlook. These are developments producers should continue to watch very closely as emerge, Washington Insider believes.
| Rural Advocate News | Friday January 29, 2021 |
Senate Republicans Seek To Protect Trump Waters Rule More than two dozen Republican senators, led by Sen. Joni Ernst, R-Iowa, introduced a resolution seeking to preserve the Trump administration's Navigable Waters Protection rule put forth by EPA, which replaced the Obama-era waters of the U.S. (WOTUS) rule. Republican lawmakers, especially those from rural states, have long complained the WOTUS rule is a prime example of overregulation. “Everyone should agree that clean water should be a national priority. But I can't stand by and allow for another Washington power grab that will make it harder for Iowans to farm, ranch, and build,” Ernst said in a statement. Trump EPA's rule set a significantly narrower definition of which waters are covered under federal protections, excluding wetlands connected to covered waters through groundwater, many ditches, and ephemeral streams, or streams that flow with rainwater. Environmentalists said that went further than rolling back the Obama-era regulation, excluding from federal protections waters that have been covered for decades. The Biden administration is expected to revisit the issue as it is among the Trump-era rules that the new administration has under review
| Rural Advocate News | Friday January 29, 2021 |
FSA Temporarily Suspends CFAP Payments USDA has temporarily suspended making payments under the Coronavirus Food Assistance Program (CFAP), citing the regulatory review underway by the new Biden administration. “In accordance with the White House memo, Regulatory Freeze Pending Review, USDA has suspended the processing and payments under the Coronavirus Food Assistance Program,” USDA's Farm Service Agency (FSA) announced. “Additional Assistance and has halted implementation until further notice. FSA local offices will continue to accept applications during the evaluation period.” The agency further noted, “In the coming days, USDA and the Biden Administration intend to take additional steps to bring relief and support to all parts of food and agriculture during the coronavirus pandemic, including by ensuring producers have access to the capital, risk management tools, disaster assistance, and other federal resources.” In guidance issued to state and county offices, FSA advised that “some activities have been suspended during the transition between Administrations. This routine action was taken to provide an opportunity for the incoming Administration to understand and evaluate the features of CFAP, including recent statutory provisions included in the Consolidated Appropriations Act, 2021.” FSA said that the suspension of activity applies to “additional assistance under CFAP 1 and 2.”
| Rural Advocate News | Friday January 29, 2021 |
Friday Watch List Markets At 7:30 a.m. CST Friday will be the release of personal income, consumer spending and core inflation numbers. We will also be watching for the announcement of any additional China purchases of corn and soybeans, and weather in South America. Weather Dry conditions will cover the entire central and eastern U.S. Friday. Temperatures will be seasonal north and east and above normal south and west. A winter storm in the western U.S. is slated to cross into the Midwest during the weekend with potentially heavy rain and snow.
| Rural Advocate News | Thursday January 28, 2021 |
USDA Announces COVID-19 Farm Loan Relief The Department of Agriculture Wednesday announced the temporary suspension of past-due debt collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs. The measures are to provide relief to farmers during the COVID-19 pandemic. USDA will temporarily suspend non-judicial foreclosures, debt offsets or wage garnishments, and referring foreclosures to the Department of Justice. USDA has extended deadlines for producers to respond to loan servicing actions, including loan deferral consideration for financially distressed and delinquent borrowers. In addition, for the Guaranteed Loan program, flexibilities have been made available to lenders to assist in servicing their customers. The announcement expands previous actions to lessen financial hardship. According to USDA data, more than 12,000 borrowers, approximately ten percent of all borrowers, are eligible for the relief. The temporary suspension is in place until further notice and is expected to continue while the national COVID-19 disaster declaration is in place. ************************************************************************************ NFU: USDA Debt Relief Will Help Keep Farmers in Business The National Farmers Union says the Department of Agriculture debt relief action Wednesday will provide farmers much-needed relief. USDA announced that it will temporarily suspend past-due debt collections and foreclosures for farmers borrowing under the Farm Storage Facility Loan and the Direct Farm Loan programs while also offering flexibilities under the Guaranteed Loan Program. Additionally, the agency plans to halt foreclosures and evictions that are already underway. The announcement comes as a relief to NFU, which has been pushing legislators and administration officials to provide family farmers and ranchers with the support they need to withstand the added challenges caused by the pandemic. In a statement, NFU President Rob Larew lauded the action, saying that it will be particularly beneficial to beginning and socially disadvantaged farmers. Larew says, “By suspending debt collections and foreclosures, the agency will help struggling farmers stay on their land and continue growing food for their fellow Americans.” ************************************************************************************ USDA Announces More Key Staff Appointments The Department of Agriculture announced more names of folks serving in key staff positions Wednesday. Rebecca Piazza was named Senior Advisor for Delivery in the Food, Nutrition and Consumer services undersecretary’s office. Most recently, she served as Vice President of Program Delivery at Nava Public Benefit Corporation. Steffanie Bezruki was named Chief of Staff in Rural Business Services. During nearly seven years on Capitol Hill, she served in various leadership positions, including most recently as Legislative Director for Congresswoman Abby Finkenauer. Abbey Meller was named Confidential Assistant in the Congressional Relations Office. She served as an Organizing Associate at the Center for American Progress in Washington, D.C. Paul Zeiss was named Confidential Assistant in the Office of Intergovernmental Affairs. Before joining USDA, Zeiss served in various capacities on President Joe Biden’s campaign, most recently as a field organizer. And, Tharun Vemulapalli was named Confidential Assistant in the Farm Production and Conservation undersecretary’s office. Vemulapalli previously served as a field organizer for the Democratic Party, working primaries, caucuses and the general election. ************************************************************************************ Senate Ag Committee Schedules Vilsack Confirmation Hearing The Senate Agriculture Committee scheduled a confirmation hearing for Agriculture Secretary nominee Tom Vilsack. The committee will meet Tuesday, February 2, at 10:30 ET, to consider the nomination. Committee leadership, Michigan Democrat Debbie Stabenow and Arkansas Republican John Boozman made the announcement Wednesday. Vilsack is expected to enjoy a smooth confirmation process overall. Vilsack previously served as Agriculture Secretary for all eight years of the Obama administration before heading up the U.S. Dairy Export Council. The Iowa native has broad support from agriculture in returning to the Department of Agriculture. However, a coalition of progressive groups, including Food and Water Watch and Progressive Democrats of America, urged Senators to block the confirmation, claiming, "Tom Vilsack is in the pocket of "Big Ag." Last week, President Joe Biden assigned Kevin Shea as the acting Agriculture Secretary until Vilsack is confirmed by the Senate. Shea has been the administrator of USDA's Animal and Plant Health Inspection Service since 2013. ************************************************************************************ Executive Order Seeks to Conserve 30% of U.S. Lands and Oceans by 2030 President Joe Biden signed an executive order Wednesday that his administration says will help restore balance on public lands and waters. The executive action focused on climate change directs the Interior Department to outline steps to achieve the President's commitment to conserving at least 30 percent each of lands and waters by the year 2030. Interior will undertake the process with broad engagement, including agricultural and others, to identify strategies that reflect the priorities of all communities. The Biden Administration says it will work to achieve the goal by supporting local, state, private, and tribally led nature conservation and restoration efforts that are underway across America. The action also directs the Interior Department to pause new oil and natural gas leasing on public lands and offshore waters. The Biden administration says the order will create jobs, and provide a path to align the management of America’s public lands and waters with the nation’s climate, conservation, and clean energy goals. ************************************************************************************ Americans to Eat Record 1.42 Billion Chicken Wings for Super Bowl LV The National Chicken Council says consumers will eat two percent more chicken wings during the upcoming Super Bowl. On Super Bowl weekend, Americans will devour an estimated record of 1.42 billion wings while watching the Kansas City Chiefs and Tampa Bay Buccaneers battle for the Lombardi Trophy. The National Chicken Council’s annual Wing Report shows several reasons for the uptick. NCC spokesperson Tom Super says, "restaurants like wing joints and pizza places were built around takeout and delivery, so they didn't have to change their business model that much during the pandemic." Wings also align with consumer desire for comfort food during the pandemic. Department of Agriculture data also confirms the demand. According to the most recent Cold Storage Reports, there was a 29 percent reduction in November and a 24 percent reduction in December in year-over-year wing inventories in cold storage, meaning restaurants and retailers took a lot of wings out of freezers and stocked up months in advance for the big game.
| Rural Advocate News | Thursday January 28, 2021 |
Washington Insider: Challenges for USDA The New York Times carried a detailed retrospective this week on the “State of the Union for food.” It began by noting that “transition memos from the left flank of American agriculture” have been piling up including pleas small and large.” It listed several: fix the rules for raising organic livestock and reverse the department's track record with Black farmers. Restore school food standards and strengthen GMO labels. Prioritize the climate crisis. There was even a suggestion to change the name to the Department of Food and Well-Being, among many others. Still, the Times said that a key perspective about USDA for “food warriors,” who worry that their issues were shoved back several squares on the game board under former President Trump is that USDA is an understaffed agency facing staggering hunger and safety challenges.” It will likely be led by Tom Vilsack, who was Agriculture secretary in the Obama administration is expected to be confirmed by the Senate for another turn, NYT said and commented that “he has already sketched out his agenda.” “There are probably five very, very large challenges ahead that have to be dealt with very quickly,” Vilsack said. Topping the list is protecting Agriculture Department employees and people who process the nation's food from the virus, and figuring out which land-grant universities, government laboratories and other department offices might be able to store and administer vaccines. Hunger relief was listed as a pressing issue, as are two of his boss's other priorities: promoting social justice and fighting climate change. Next comes propping up regional food systems and helping farmers. However, the Times also notes that Vilsack is returning to a vastly different department from the one he ran in the Obama era, when it landed on the Forbes list of America's best employers. Morale is low and many positions are unfilled – especially in agencies that provide the data and scientific research for policy decisions. The Agriculture Department, with a budget of $153 billion and nearly 100,000 employees, runs 29 agencies and offices whose jobs range from feeding the poorest Americans and regulating what public schoolchildren eat to managing forests and helping farmers sell commodities like soybeans abroad. Under President Obama, childhood nutrition and the quality of school food became a priority. Michelle Obama created a permanent White House garden and climate-friendly policies gained traction. When President Trump arrived at the White House, his supporters joked about turning the garden into a putting green. His USDA secretary, Sonny Perdue, moved the department's largest science-based research agencies, the Economic Research Service and the National Institute of Food and Agriculture, from Washington to Kansas City, Mo. Many employees resigned rather than move – the staffs were gutted, limiting the agencies' effectiveness. Also, President Trump became a champion in many rural communities, easing regulations and paying farmers when his “get tough” trade policies and the pandemic hurt sales. But the mood was bleak on the other side, according to Laura Batcha, the chief executive officer of the Organic Trade Association which represents a $50 billion segment of the food industry. “The root of it was a hyper-anti-regulatory agenda with no respect for organics or other forms of sustainable agriculture.” The Times says that some advocates, like Batcha, have strong hopes for Vilsack – but others consider him a retread and not even all agribusiness and commodity farmers are happy with his nomination. Still, the new president went with experience, seeking someone who could immediately get to work on pandemic-related safety and nutrition issues. The number of Americans who face hunger rose by some estimates to more than 50 million in 2020, from about 34 million in 2019, the Times said. Last week, President Biden signed an executive order that would increase both the amount of federal food assistance for about 12 million people who use the supplemental nutrition programs and the grocery money given to families with school-age children. He has also included more money for other federal feeding programs in his proposed $1.9 trillion stimulus package. The pandemic has shown how fragile the food-supply chain is, Vilsack said, and has underscored the need to open more regional and local markets and increase the number of meat processors so the country isn't so reliant on a handful of plants. Changes that many people thought were decades away, like universal school meals, stronger urban-rural supply chains and e-commerce for agriculture, have accelerated during both the pandemic and the Trump administration, said Krystal Oriadha, the senior director of policy and programs at the National Farm to School Network. Farmers, environmentalists and anti-hunger advocates were forced to strengthen relationships based on a new understanding of how interconnected and vulnerable the food system is. “This is a new moment, with a new generation of voters is putting pressure on ideas around environmental and racial-justice issues like we haven't had before,” she said. “If we have one-idea-fits-all at the national level, it just gets watered down,” she said. “I can't think nationally anymore. I need to act locally. I need to go where the doors are open.” So, we will see. Clearly, the ag industry is far more complicated now than it used to be and many of its key issues are extremely controversial—especially those linked to the environment and other social issues. These are concerns that producers should watch especially closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday January 28, 2021 |
Sinclair Confirms Receipt of RFS Waivers In Court Filing Sinclair Oil Corporation said in court filings this week it was the recipient of waivers of its Renewable Fuels Standard (RFS) obligations via small refinery exemptions (SRES) granted by the Trump administration earlier this month. Reuters reported that Sinclair was the recipient of at least two of the three waivers granted. Sinclair made the admission in court filings defending the waivers in response to the Renewable Fuels Association (RFS) filing to block the waivers; The U.S. Court of Appeals for the DC Circuit ruled the three waivers granted by EPA should be stayed. Sinclair filed the statement in court, saying it had the right to intervene in the matter as if the SREs are blocked, it would face financial harm. It is not clear if Sinclair was the recipient of all three waivers issued by the Trump administration last week — two for the 2019 compliance year and one for the 2018 compliance year. The SRE issue is just one of the biofuel policy matters facing the new administration as EPA also now has to put forth proposed levels for the 2021 biofuels and 2022 biodiesel levels under the RFS.
| Rural Advocate News | Thursday January 28, 2021 |
USDA 's FAS In China Still Notes Uncertainty On Over-Quota Tariffs On Corn Imports The USDA Foreign Agricultural Service (FAS) in China has kept its import forecast for corn at 22 million metric tons for 2020-21, indicating that the country will likely use imports of sorghum, barley and other grains in feed rations. But the report also addressed the issue of China's corn imports, which FAS pegs at 4.5 mmt more than the official USDA level. The calendar year 2020 corn imports by China surpassed the 7.2 mmt tariff-rate quota (TRQ), the report noted, “with no slowdown in sight.” But the issue of the 65% tariff that is applied to imports above the TRQ remains a question, as the report said, “It remains unclear if the 65% out of quota duty was applied to imported corn or if additional TRQs were quietly issued as official government agencies remain silent on the matter. In addition, there is rampant industry speculation of a 'special TRQ' that will be used for China to import U.S. corn to meet its purchase commitments under the U.S.-China Phase One Economic and Trade Agreement.” It is interesting that even USDA's on-the-ground offices in China are unable to unearth additional details on the 65% tariff that applies to imports above the TRQ levels, a key question given that China's appetite continues strong for U.S. corn, including 1.36 mmt of purchases announced Tuesday by USDA.
| Rural Advocate News | Thursday January 28, 2021 |
Thursday Watch List Markets At 7:30 a.m. CST Thursday, USDA's weekly export sales report, weekly U.S. jobless claims, a report of U.S. GDP for the fourth quarter and the latest U.S. Drought Monitor all are set for release. U.S. new home sales and a U.S. index of leading indicators are due out at 9 a.m., followed by natural gas inventory at 9:30 a.m. Traders continue to keep a close watch on the latest weather forecasts and any export news that develops. Weather Dry conditions are in store across the central U.S. Thursday. Precipitation will be confined to light snow in the Great Lakes. Temperatures will be seasonally cold in the Midwest and near to above normal in the Plains. A storm system in the western U.S. is indicated to bring rain and snow to the Midwest during the weekend.
| Rural Advocate News | Wednesday January 27, 2021 |
Biden to Approach China with Strategic Patience The Biden administration will approach economic and trade relations with China with “strategic patience.” The administration is starting to review current policies, including reviewing tariffs, but that doesn’t mean Biden favors removing tariffs. White House Press Secretary Jen Psaki (Sock-ee) said early this week the President “will take a multilateral approach to engaging with China, and that includes evaluating the tariffs currently in place,” adding, “the President is committed to stopping China’s economic abuses on many fronts." The Phase One trade agreement between the U.S. and China has increased China's purchases of U.S. farm commodities. However, the purchases are still not on target to reach levels pledged in the agreement. China is expected to continue the increased purchases in 2021. A China Foreign Affairs Ministry Spokesperson responded, "We hope the new U.S. administration will learn from the Trump administration's lessons where they carried out the wrong policies on China.” ************************************************************************************ U.S. and EU Groups Seek Tariff Relief A group of 72 EU and U.S. organizations urges leaders to remove or at least suspend all additional and retaliatory tariffs affecting or threatening Trans-Atlantic trade. In a letter addressed to President Joe Biden and the EU Commission President, the groups say suspending the tariffs is urgently needed to address economic harms. Specifically, the groups refer to tariffs on large civil aircraft and steel and aluminum disputes. Food and agricultural goods make up a disproportionate number of the EU’s overall tariff line, according to a 2020 analysis by the American Farm Bureau Federation. The most impacted group includes alcohol, tobacco and cotton. The next largest category is oilseeds, oils and fats. The letter states, “We believe immediate suspension of these tariffs is a necessary and fundamental action, which will provide an economic stimulus at a time when it is needed most.” Groups signing the letter include the American Soybean Association, the National Association of Wheat Growers, the U.S. Grains Council and others. ************************************************************************************ Farmer Co-ops Applaud White House Call to Buy American The National Council of Farmer Cooperatives applauded President Joe Biden’s Buy American executive order signed this week. The action supports manufacturers, businesses and workers to ensure that federal purchasing programs follow Buy American requirements. The order seeks to close loopholes in how domestic content is measured, create a new position at the Office of Management and Budget to oversee the issue, and increase oversight of waivers to domestic preference laws. The Council has long supported enforcing and strengthening the Buy American provisions in programs administered by the Department of Agriculture, such as the National School Lunch and School Breakfast Programs. NCFC and its members have expressed deep concern in recent years over a marked increase in the amount of foreign-produced food served under the school lunch and breakfast programs. NCFC President and CEO Chuck Conner says, "Sourcing non-U.S. foods—even when competitively priced domestic alternatives are available—not only runs counter to the law, but destroys jobs across the value chain.” ************************************************************************************ Tester: QLA Does Not Provide Adequate Support for Feed Grain Producers U.S. Senator Jon Tester says the Farm Service Agency has further delayed disaster assistance support for farmers who were hit by quality losses in 2018 and 2019. Despite the recent rollout of the Quality Loss Assistance Program, the Montana Democrat says some producers were left out of the assistance package. Tester says QLA does not provide adequate support for producers that sold grain as feed. Under existing QLA guidelines, producers must submit quality discount settlement documentation, which is not often issued for feed wheat. Without documentation, Tester says, “this means that the producers who need QLA the most are unable to make full use of this program." The Department of Agriculture QLA program's announcement earlier this month was meant to provide relief to producers who suffered crop quality losses in 2018 and 2019. It was created to supplement relief provided to farmers through the Wildfire, Hurricane, and Indemnity Program Plus. Tester urged the Farm Service Agency to correct the claimed errors. ************************************************************************************ Family-owned Farms Account for 96% of U.S. Farms Family farms comprise 96 percent of all U.S. farms and 82 percent of the value of all agricultural products sold. The Department of Agriculture's National Agricultural Statistics Service recently released the data in the 2017 Census of Agriculture Farm Typology report. The report focuses on the family farm, defined as any farm where the majority of the business is owned by the producer and individuals related to the producer. The report classifies all farms into unique categories based on two criteria, who owns the operation and GCFI, gross cash farm income. GCFI includes the producer’s sales of crops and livestock, fees for delivering commodities under production contracts, government payments, and farm-related income. The data shows that small family farms, those farms with a GCFI of less than $350,000 per year, account for 88 percent of all U.S. farms, 46 percent of total land in farms, and 19 percent of the value of all agricultural products sold. However, the number of family farms decreased by four percent since 2012. ************************************************************************************ Corn Belt Land Market Seeing Strong Prices Buying interest in farmland has been stable for the past several years. However, the level of interest grew starting last summer in the eastern Corn Belt. Farmers National Company reports prices for top-quality cropland sold at auctions and listings increased significantly since before harvest. Demand for good farmland has improved, and good cropland is selling for prices last seen in 2013. Government payments, low-interest rates, and rising grain prices sustained farmers' interest in buying land, especially in the fall. The boost in net farm income provided the financial comfort for farmers to step into the land market. Farmers National Company's land sales volume was up 35 percent during the final quarter of 2020 compared to 2019 despite a normal to lower supply of land for sale in the overall market. Looking ahead, the company suggests investor interest and farmer demand coupled with a low supply of good cropland on the market will continue to drive the land prices in 2021.
| Rural Advocate News | Wednesday January 27, 2021 |
Washington Insider: New Efforts to Prevent Future Pandemics Bloomberg is reporting this week that the new Biden administration is arguing that even without a “home run antiviral” for COVID-19, Dr. Francis Collins is proposing a big push to develop a treatment from scratch to prepare for future coronavirus outbreaks. That work will likely take several years, the longtime director of the National Institutes of Health acknowledged. By then the nation should be long past “herd immunity” in the present crisis.” But even with the unprecedented success of vaccine development for COVID-19 — much of which built on decades of basic research funded at the NIH — Collins sees the need for a lot of work ahead. “We must not lose this opportunity. Even as we hope we're going to get past the worst of SARS-CoV-2, we've got to keep this momentum going. There will be other pandemics. And some of them may very well be coronaviruses.” When Dr. Collins was reappointed to lead the nation's biomedical research programs, he became the only NIH director to be tapped by three different presidents for the role — and also will be one of the longest-serving NIH directors of all time. Collins said that Jan. 22 was the third day working under his third administration — and he focused on priorities both for the COVID-19 response and beyond. The decision to keep Collins isn't surprising, as he's one of the few bipartisan political appointees in a very partisan environment, Bloomberg said. President Barack Obama first nominated Collins in 2009 and it was a group of Republicans who urged then President-elect Donald Trump in late 2016 to keep him. Collins said that his renomination came after a “very nice, brief conversation” with President-elect Joe Biden about the need for consistent leadership in an important moment for biomedical research and how the two had worked well together when Biden was the vice president. Biden led the Cancer Moonshot initiative to double the rate of progress on cancer prevention and therapies. Biden told Collins that “he had a lot of confidence in what he was doing and what he could do. And so, he was saying, and asked, Will you agree to be carried over?' And, of course, I said yes.” “Of course, Tony Fauci is very much in the center of what is being done about COVID. And Tony and I do speak nowadays several times a day on making sure to make the most of this opportunity for science to lead the effort,” he said, referring to the director of the NIH's National Institute of Allergy and Infectious Diseases who's Biden's chief medical adviser on COVID-19. Their priorities include more work on vaccines, new therapeutics, and better tests, Collins said. On the vaccine effort, NIH is starting a program to understand whether virus mutations lessen how well vaccines and monoclonal antibodies work. They're also working on a testing pilot project with the Centers for Disease Control and Prevention that would essentially flood a community with free, at home testing to see if it changes behaviors. “We are still not yet at the point where we need to be in terms of knowing what's the right approach to testing to get schools reopened, to make it safe for everybody to come back to the workplace, to open up restaurants and other places that people would like to go, which is just not safe right now,” Collins said. Collins said he hopes the testing pilot program will be up and running in a few weeks. On therapeutics, Collins said the agency has worked to identify the most promising ideas among hundreds and hundreds to put them into well-designed, rigorous, and faster, protocolâ??driven clinical trials. There have been some successes, including recent findings that full-dose blood thinners reduce the need for life support and led to better outcomes for hospitalized COVID-19 patients. Collins said “the study showed actually it caused no more side effects—and that it was clearly successful in terms of keeping people from ending up on the ventilator.” Scientists are also moving forward with more monoclonal antibody therapeutics, Collins said. But long term there's a need to develop antivirals that are specific to the coronavirus, such as remdesivir, an antiviral mediation. “We hoped that there might be some that had already been developed for other viruses and remdesivir was really the only one that came through. But it is not a home run. It's a benefit, but it's not what you really hope to have,” Collins said. The NIH director said he's hoping there will be additional funding, particularly under supplemental virus relief packages. While the pandemic has been the top R&D priority, Collins mentioned a number of other research areas he wants to advance as part of the $42.9 billion agency he oversees. These include cancer immunotherapy, gene therapy, and research in Alzheimer's disease, the opioid crisis and the long-term effects of COVID-19. “That's just a short list,” he said. “We really want to get fully empowered again.” So, we will see. There is still a “fog of war” surrounding the virus, its mutations and how best to treat it and how to prevent similar outbreaks in the future, so Dr. Collins and his colleagues have their work cut out for them for some time. These efforts will be central to full U.S. economic recovery, and producers should watch them closely as they continue to be implemented, Washington Insider believes.
| Rural Advocate News | Wednesday January 27, 2021 |
Proposed Rule From EPA On Biofuel and Biodiesel Levels Formally Withdrawn From OMB Review The proposed rule on 2021 biofuel and 2022 biodiesel levels under the Renewable Fuel Standard (RFS) that has been shown as under review at the Office of Management and Budget (OMB) since May has been formally withdrawn. The development means that the Biden administration EPA will now have to send forth a new proposed rule on the levels. The Trump administration had previously set a goal of putting for the proposed levels by December and finalizing them by June. It is not clear what the new timeline will be for the proposed and final levels. The move is not surprising given the Biden administration undertaking a review of uncompleted and completed regulations from the Trump administration. Normally, the proposed RFS levels are released in June or July of the year prior to them taking effect with a statutory deadline of November 30 for the levels to be finalized for the coming year (biodiesel levels are set a year in advance).
| Rural Advocate News | Wednesday January 27, 2021 |
New Republican Members Of House Ag Committee Set There will be seven new Republican members of the House Ag Committee, according to recommendations from the House Republican Steering Committee. New members include Reps. Michelle Fischbach of Minnesota, Tracey Mann of Kansas, Randy Feenstra of Iowa, Michael Cloud of Texas, Kat Cammack of Florida, Barry Moore of Alabama and Mary Miller of Illinois. Democrats have not yet finalized their Ag panel membership. The new slate of members underscores the need for educating new members on U.S. farm policy, a situation which has seemingly increased with each election cycle as members with years/decades of experience in farm policy are either replaced or retire.
| Rural Advocate News | Wednesday January 27, 2021 |
Wednesday Watch List Markets At 7:30 a.m. CST Wednesday, the U.S. Commerce Department releases a report of U.S. durable goods orders for December. The U.S. Energy Department releases its weekly energy inventory report, including ethanol, at 9:30 a.m. The Federal Reserve concludes its open market committee meeting at 2 p.m. and is expected to keep the federal funds rate target near zero. Traders continue to examine the latest weather forecasts and watch for any export news. Weather Light snow is in store for the southern Midwest Wednesday. Other crop areas will be dry, allowing for clearing of roads in areas that had heavy snow earlier this week. Northern areas will be very cold; wind chill bulletins cover much of the far Northern Plains. A large storm system bringing rain and snow to the Far West is indicated to be a rain and snow producer in the Midwest during the coming weekend.
| Rural Advocate News | Tuesday January 26, 2021 |
Biden Speaks with Canada’s Trudeau President Joe Biden spoke with Canadian Prime Minister Justin Trudeau Friday in his first call with a foreign official. The leaders discussed combatting the COVID-19 pandemic, strengthening economic ties, defense and climate change. They also discussed the U.S.-Canada supply chain, along with promoting and protecting the economic relationship between the U.S. and Canada, including bilateral trade and energy commitments. Trudeau raised Canada’s disappointment with the United States’ decision on the Keystone XL pipeline, underscoring “the important economic and energy security benefits of our bilateral energy relationship,” as well as his support for energy workers. Biden halted construction on the controversial pipeline via an executive order on his first day in office. The White House noted Biden acknowledged the disappointment regarding the decision, adding Biden "reaffirmed his commitment to maintain an active bilateral dialogue and to further deepen cooperation with Canada.” The two leaders agreed to meet next month to continue the dialogue. ************************************************************************************ USDA Announces Heather Dawn Thompson as Director, Office of Tribal Relations The Department of Agriculture Monday announced Heather Dawn Thompson's appointment as Director of the Office of Tribal Relations. USDA says Thompson is a member of the Cheyenne River Sioux Tribe, a Harvard Law School graduate, and an expert in American Indian law, tribal sovereignty, and rural tribal economic development. With Thompson in place, USDA will return the position directly under the Secretary, “restoring the office’s important government-to-government role.” A USDA spokesperson says it's "important to have a Director who can serve as a lead voice on tribal issues, relations and economic development within the Office of the Secretary." Most recently, Thompson served as a member of the American Indian Law Practice Group, where she worked on federal Indian law and Tribal agriculture. In the private sector, Thompson was previously a partner at Dentons, where she was one of only a handful of Native American partners at an “AmLaw 100” law firm. ************************************************************************************ 2021 Pork Industry Forum Will be a Virtual Event The National Pork Board recently announced the 2021 Pork Industry Forum will be a virtual event. The organization says the decision comes after much consideration and guidance from health officials. The event largely serves as a planning session for the National Pork Board. The virtual event, scheduled for March 3-5, 2021, includes the Pork Act Delegate session. The 15 producers who serve as members of the National Pork Board and Pork Checkoff staff leadership will hear directly from Pork Act delegates appointed by the Secretary of Agriculture. Each year the delegates confer, vote on resolutions and advisements and provide direction on the issues facing pork producers and the industry. All pork producers and media are invited to attend the Pork Act Delegate Session. The National Pork Board says a detailed agenda and registration details will be available soon. The 2020 event was held in Kansas City, Missouri. The 2022 Pork Industry Forum will be held in Louisville, Kentucky. ************************************************************************************ Colorado Senators Ask Biden to keep BLM HQ in Colorado Colorado U.S. Senators Michael Bennet and John Hickenlooper recently reiterated their support for a fully functioning Bureau of Land Management headquarters in Grand Junction, Colorado. The Democrats penned a letter to President Joe Biden touting the benefits of a fully-fledged headquarters on the Western Slope. Despite committing to move the headquarters to Colorado, the Department of the Interior assigned 41 senior staff positions to Grand Junction, many of which they rushed to fill at the end of 2020. Bennet has supported moving the BLM national headquarters West for years, commenting on the idea in August 2017. As Governor, Hickenlooper advocated for the BLM to move its headquarters and touted the economic benefits for the state. In July 2019, then-Secretary Bernhardt announced that the BLM headquarters would move to Grand Junction, and just over a year later the department signed an order formalizing the move. However, the Senators say, “Despite these important and symbolic steps, the Trump Administration did not follow through on their commitment to Grand Junction.” ************************************************************************************ Rising Dairy Consumption Providing Comfort in a Challenging Time Data shows dairy is bringing some comfort during a challenging time. Throughout the market ups and downs of the pandemic era, consumers love of dairy products has been constant, even rising in 2020 from 2019, according to the National Milk Producers Federation. Retail dairy purchases, which jumped at the pandemic's beginning, remained elevated throughout the year. With more meals being prepared at home, dairy has provided comfort in uncomfortable times. Coffee was complemented with real dairy cream or half-and-half. Milk remained essential to family nutrition. Milk consumption itself saw gains across all categories. Buttermilk use rose with the baking revival, organic and conventional volumes of fluid milk rose, and lactose-free milk saw increases comparable to those of plant-based beverages – which, is a comparably-sized market to that of lactose-free alone. Milk sales also grew more than plant-based beverages during the pandemic, nearly $1 billion in growth compared to less than $400 million for plant-based drinks. ************************************************************************************ Growing the Future of Agriculture through Give FFA Day The National FFA Organization will again hold Give FFA Day. In 2020, through generous donations from FFA supporters, students and teachers across the country were able to continue to make a difference. Once again, during National FFA Week, individuals will have an opportunity to step up and support FFA and agricultural education through Give FFA Day on Thursday, February 25. This year, the organization has a goal of getting 1,500 donors during the 24-hour period. FFA corporate partners will also participate in increasing contributions by matching them dollar-for-dollar on Give FFA Day. The first $25,000 donated will be matched by Carhartt, and the second $25,000 will be matched by John Deere. Other challenges will be announced throughout the day. In addition, former FFA members and FFA alumni are encouraged to donate $19.71 in honor of the 50th anniversary of the National FFA Alumni, which was chartered in 1971. To prepare for Give FFA day, visit FFA.org/GiveFFADay.
| Rural Advocate News | Tuesday January 26, 2021 |
Washington Insider: Reviving WTO, US Trade Policy Bloomberg is reporting this week that the U.S. has considerable work to do before it rolls out its trade policy modifications. For example, the U.S. delegation to the WTO, in a statement Monday, said it's “not in a position” to back a proposal on appellate panel members, citing Biden's inauguration five days ago and continuing work on the transition. The delay affects attempts to fill the vacancies on the WTO's appellate body – a seven-seat panel that has the final say on disputes that affect billions of dollars in commerce. The gridlock began after the Trump administration unilaterally opposed all new appointments to the panel. While the U.S. has indicated its intention to work with allies to address mutual international concerns, the fate of the appellate body could remain in a holding pattern as the president attends to more pressing domestic issues. Furthermore, the U.S. Senate has yet to confirm the administration's nominee for U.S. Trade Representative, Katherine Tai, who is expected to lead the administration's approach to WTO reform. In the meantime, the EU says it plans to introduce a new proposal aimed at addressing U.S. concerns with the appellate body in an effort to engage Washington on substantive reforms to the WTO. “We need a new EU-U.S. understanding on the appellate body or on the dispute settlement system,” EU Director-General for Trade Sabine Weyand said earlier this month. Weyand said the EU will build upon a roadmap developed by WTO general council chairman David Walker to clarify the WTO's dispute settlement rules and potentially negotiate new ones to address the changes that have emerged since they were first agreed in 1995. In addition, Bloomberg is reporting that recent remarks from Chinese President Xi indicate his determination to “stay the course” on trade and his charge that the world should abandon “ideological prejudice” and shun an “outdated Cold-War mentality.” It's vital to stay committed to international law and international rules “instead of staying committed to supremacy,” Xi told the Davos Agenda event on Monday, in his first address since President Biden entered the White House. “Confrontation will lead us to a dead end,” he said, and urged a return to mutual respect to help the recovery from the pandemic. “To build small circles and start a new Cold War, to reject, threaten or intimate others, to willfully impose decoupling, supply disruptions, or sanctions, or to create isolation or estrangement, will only push the world into division and even confrontation,” he said. Xi's speech had been widely anticipated for the tone it would set for relations between the world's biggest economies over the next four years. Though Xi did not name Biden by name, many of his comments were clearly targeted at the new U.S. administration. Xi repeated many of the same talking points about multilateralism and “win-win” outcomes that he deployed in his last address to Davos four years ago, days before Donald Trump's inauguration, but he also signaled that he does not intend to change course in the face of U.S. pressure. “Each country is unique with its own history, culture and social system, and none is superior to the other,” Xi said, warning against imposing a “hierarchy on human civilization” or forcing one's own systems onto others. During the address, Xi hinted at his desire to reestablish high-level dialogue with the incoming administration, calling for countries to “enhance political trust through strategic communication.” The Chinese leader succeeded in building a cordial personal relationship with Trump even as the two powers descended into a trade war. That effort led to the development of official dialogue tracks which eventually disintegrated over the course of Trump's presidency. By the time Biden was sworn in, more than 100 officially organized exchange forums had been disbanded and tariffs imposed on almost $500 billion of products. While Biden hasn't given many specifics on how he'll deal with these and other flashpoints, he has signaled a shift from confrontation to competition. In his speech, Xi steered clear of the triumphal tone evident in some of his domestic addresses in recent years. In a speech last September, Xi said China's pandemic response demonstrated the “superiority” of China's political system. In others, he has argued that “China is moving closer to the center of the world stage.” And Bloomberg thinks “the president spoke from a position of strength.” China has been the only major economy to report growth amid the pandemic last year, and economists are forecasting an expansion of 8.3% this year, compared with 4.1% in the U.S. So, we will see. The administration is facing numerous difficult transition objectives just now, including efforts to control the coronavirus and its impacts on the economy. Certainly, the links to China and the EU will eventually be of central importance and producers should watch closely as these key policy links are debated and implemented, Washington Insider believes.
| Rural Advocate News | Tuesday January 26, 2021 |
Few Pending Regs at OMB in Wake of Biden Administration Review Very few regulations remain under review at the Office of Management and Budget (OMB) as the Biden administration undergoes a review of prior and pending regulatory actions from the Trump administration. There are currently no USDA regulations pending review at OMB, and prior regulations that were at OMB have been mostly withdrawn, including ones dealing with the Supplemental Nutrition Assistance Program (SNAP), the use of radio frequency identification tag for cattle and bison, and a final rule on imports of small ruminants relative to BSE. Of five pending from EPA, the list still shows the 2021 biofuel and 2022 biodiesel proposed levels as being under review. The regulatory agenda from the Biden administration continues to take shape, but it is clear that many of their initial actions will be linked to likely altering any pending actions left from the Trump administration and then deciding how to proceed relative to regulations that were put in place over the past four years.
| Rural Advocate News | Tuesday January 26, 2021 |
WSJ: China Seeking High-Level Meeting With New US Administration China has continued to push for a meeting between top-level officials from both countries as the Biden administration continues to take shape, according to the Wall Street Journal (WSJ). Beijing is pressing for a meeting of its top diplomat with senior aides to President Joe Biden to explore a summit between the two nations' leaders, the report said, citing people with knowledge of the initiative. The proposal, made soon after President Xi Jinping congratulated Joe Biden on his election victory, was through letters by the Chinese ambassador to the U.S., Cui Tiankai, and through conversations with intermediaries, the WSJ noted. Beijing raised the idea starting in December of dispatching Yang Jiechi, a member of the Politburo, the Communist Party's top decision-making body, to Washington. Yang plans to focus on climate change, the pandemic and getting an initial meeting between Biden and Chinese President Xi Jinping, with the focus shifted away from trade — the issue that has dominated Sino-U.S. relations. Biden, however, has said he would meet first with allies to discuss issues including how to jointly confront China. He has already spoken with Canadian Prime Minister Justin Trudeau and others. The WSJ said Chinese officials believe that the Biden administration will eventually want to renegotiate the U.S.-China Phase One trade deal, but it added it is unclear whether Biden's choice for U.S. Trade Representative Katherine Tai will push for enforcement of the Phase One deal or press for a new round of negotiations. Given that the Biden administration has made the U.S. economy a priority and trade has been relegated to a lower focus, and the administration's signal that it wants to enlist U.S. allies to take on China, a top-level meeting is not expected to take place soon.
| Rural Advocate News | Tuesday January 26, 2021 |
Tuesday Watch List Markets Traders continue to watch the latest weather forecasts, including winter storms across the U.S. and will take a time out at 8 a.m. CST to see if USDA has an export sale to announce. The only official report on Tuesday's docket is an index of U.S. consumer confidence, due out at 9 a.m. CST. Weather Moderate to heavy snow will cover much of the Midwest Tuesday. The snow will create transportation and safety issues and be stressful to livestock. We'll also see areas of rain in the Southeast. Snow forming in the Southwest will move into the southern Plains during Tuesday-Wednesday. Northern areas will be cold and dry.
| Rural Advocate News | Monday January 25, 2021 |
New Swine Fever Virus Affecting Chinese Herds Industry insiders tell Reuters that a new form of African swine fever is popping up on Chinese pig farms. The timing is not good for the world’s biggest pork producer that’s still trying to recover from a devastating epidemic. Two new strains of African Swine Fever have infected over 1,000 sows on several farms owned by China’s fourth-largest pork producer. It’s also showing up in pigs being fattened for the firm by contract farmers. A company spokesperson says the disease isn’t quite the same as the wild African Swine Fever Virus because the new variant doesn’t kill the large number of pigs that China lost in 2018 and 2019. The new strain causes a chronic condition that reduces the number of healthy piglets born to sows. But infected pigs are culled from herds to prevent the spread, which makes the disease ultimately fatal. Many Chinese farmers turned to unapproved products to help protect their animals. Chinese experts fear the illicit vaccines created accidental infections that have begun to spread. There’s no approved vaccine for ASF, which is not harmful to humans. ************************************************************************************ JBS Offers Bonuses to Workers Who Get Vaccinated Against COVID-19 Meatpacker JBS and chicken company Pilgrim’s Pride Corporation say they’ll pay 100 dollars to American workers who voluntarily get the COVID-19 vaccine. Yahoo News Dot Com says thousands of U.S. meatpacking workers were infected last year, so the bonus will hopefully encourage employees to get the inoculations. COVID outbreaks temporarily halted most meat production in the spring of 2020, which pushed meat prices higher as supplies tightened up on consumers. Company surveys already show that between 60 and 90 percent of their employees at different facilities were willing to be vaccinated. The companies launched educational efforts to promote the vaccine as a positive step for their employees, some of whom are immigrants from around the world. According to the U.S. Centers for Disease Control, food and agricultural workers will receive the vaccine during a later phase of the rollout, after healthcare workers and people over 75 years old. Rival company Tyson Foods said late last week that it will offer the vaccines on-site at its facilities, so employees can get inoculated while they’re at work. ********************************************************************************************** Farm Bureau Report Recommends Improvements at NASS A new report from the American Farm Bureau lays out several recommendations to improve the way the National Agricultural Statistics Service collects surveys and reports data. It also gives recommendations to improve accuracy and farmer confidence in the survey results. The USDA-NASS Working Group made up of 10 farmer-members, spent over four months looking at the processes and methodologies that USDA-NASS uses to put farmer survey data into monthly reports. The recommendations include increasing transparency on how the agency arrives at the numbers reported and providing clarity on the relationship between aggregate, state, and field-level reported numbers. Farm Bureau would also like to see the agency accelerate its adoption of new and innovative technologies. Farm Bureau also wants to work closely with NASS in a variety of ways, including working to encourage farmers’ accurate and timely participation in NASS data collection. “We hope the work done by this group will provide a framework for USDA to make timelier adjustments to these key reports and restore trust in the data we’ve relied on for a long time,” says AFB President Zippy Duvall. ********************************************************************************************** Biodiesel Industry Looking for Progress in 2021 During the recent National Biodiesel Conference and Expo, the National Biodiesel Board celebrated the industry’s many achievements in the face of adversity. The NBB hosted more than 550 biodiesel and renewable diesel producers, distributors, retailers, and other industry advocates and partners to talk about the direction of the industry. The NBB has set a goal of six billion gallons of production by 2030. “Our industry has seen its fair share of challenges over the years, but I am proud to say that the biodiesel and renewable diesel industries never gave up, even in the middle of a pandemic,” says NBB CEO Donnell Rehagen. “Our members continually beat expectations year after year, and there’s a lot to be excited about as we move forward.” The group shared updates from each of its core program areas, including federal affairs. “Emerging proposals in Washington that would decarbonize the energy and ag sectors, modernize transportation infrastructure, and incentivize research and development can provide new market opportunities for biodiesel,” says Kurt Kovarik, NBB Vice President of Federal Affairs. The group also discussed state programs that are driving demand for a low-carbon future, as well as sustainability, communications, and outreach and development programs. *********************************************************************************************** Benham Elected Acting Chair of CFTC The Commodity Futures Trading Commission announced that it unanimously elected Commissioner Rostin (RUSS-tin) Behnam as acting chairman. The Hagstrom Report says Behnam succeeds Heath Tarbert, who served as chair since July of 2019, and who will remain as a commissioner until 2024. Behnam says the work of the CFTC is critical to supporting the stability and growth of the American economy through strong oversight and regulation of the derivatives markets. “As a commissioner, I’ve focused on making sure our rules emphasize protecting customers, look into potential systemic risks in the markets, and gaining a better understanding of what regulators can do to address climate-related financial market risk,” Behnam says. “I’m grateful to my fellow commissioners for their support.” Senate Ag Committee Chair Debbie Stabenow says she’s been impressed with Behnam’s proactive work to protect the economy from the urgent impacts of climate change. “He’s been a vigilant advocate for Wall Street reform to hold bad actors accountable,” she says. “I look forward to working with him to continue protecting the families, farmers, and the businesses that rely on our agricultural and financial markets.” Behnam previously worked for Stabenow before becoming a CFTC commissioner in 2017. ********************************************************************************************** Groups Oppose the SAFE Rule A group of farm, biofuels, and environmental organizations filed a court brief objecting to the Safer Affordable Fuel Efficiency Vehicle Rule. Their objection is based on grounds that it both fails to account for toxic pollution from aromatic-laden fuels and ignores the important role that ethanol can play in improving fuel efficiency and reducing greenhouse gas emissions. The rule was finalized last April by the Environmental Protection Agency and the National Highway Traffic Safety Administration. It reversed an Obama-era rule that called for a five percent improvement in vehicle efficiency. In place of that, the SAFE rule established a much smaller 1.5 percent increase in vehicle efficiency each year for light-duty vehicles. The brief was led by the National Farmers Union and includes support from the Clean Fuels Development Coalition, the Governors’ Biofuels Coalition, and several other industry stakeholders. “As written, the SAFE rule puts the interests of oil corporations ahead of those in the renewable fuel industry, the environment, and the public at large,” says NFU President Rob Larew. “It will increase our overall emissions, delay the development of renewable fuels, all of which erodes air quality, contributes to climate change, to health risks, and increases the cost of fuel for consumers.”
| Rural Advocate News | Monday January 25, 2021 |
Washington Insider: Renewed Fights Over Clean Air and Carbon Issues Bloomberg is reporting this week that President Joe Biden has teed up a “slew” of clean air and carbon issues and made them “top environmental priorities” for his administration in a new executive order signed this week. The directive affected dozens of Trump-era rules, including carbon emissions, clean air rollbacks, and Clean Air Act rules on science and costs. However, Bloomberg also argued that “any bold standards Biden has in mind to stem emissions from industry through the Clean Air Act will almost certainly get challenged in court.” The unending cycle of rulemakings followed by years-long lawsuits is a signal that the Clean Air Act needs to be amended to give the executive more direct authority, Schiff Hardin LLP environmental partner Jane Montgomery said. “Hopefully, with Biden's experience in Congress, he can recognize that lawsuits are a result of bad law,” she said. Biden may have to choose between innovative actions or traditional “nuts and bolts” regulation under the statute in order to avoid defeat in a 6-3 conservative Supreme Court skeptical of broad agency powers, Loyola University New Orleans Law Professor Robert Verchick said. “It's going to be a lot harder to do more flexible, ambitious, and innovative programs under these older laws because the court, I don't think, is going to have the appetite for it,” he said. The report focused on what it called the most “closely watched air issues” on President Biden's to-do list. In addition, it noted that the U.S. Court of Appeals for the District of Columbia Circuit handed the new administration a huge win Jan. 19 when it struck down President Donald Trump's carbon rule for coal-fired power plants. The new White House now has a fresh start to craft greenhouse gas standards for existing sources. The DC Circuit opinion affirmed Obama-era justifications for regulating power plant carbon under the Clean Air Act, but Hana Vizcarra, a staff attorney at Harvard Law School's Environmental and Energy Program, says she is not expecting what was called “Clean Power Plan 2.0.” “Even the ambitions of the Clean Power Plan were limited compared to what the ambitions of this administration are,” she said. Companion performance standards for new plants were released by the outgoing administration earlier this month. Though the standards were left unchanged from 2015 levels, the Trump administration added a new threshold that sources must meet in order to be regulated under the rule. States and groups quickly launched legal challenges against the most recent rulemaking, claiming the new threshold was added illegally without proper public input. And Biden asked the EPA to swiftly reexamine Trump rules on scientific considerations and cost-benefit analyses under the Clean Air Act. Both rules put limits on how scientific research and cost and benefits are weighed under the statute, which critics worry could further hem Biden's ability to craft new air regulations. The new cost-benefit rule finalized late last year would require agencies to analyze a rule's primary targeted benefits separately from co-benefits like reducing greenhouse gas emissions. The newly finalized science rule puts a limit on how much weight agencies can give nonpublic scientific data in rulemaking analysis. Also on the “chopping block” is a rule that scraps enforcement of a decades-old policy locking in toxic air pollution controls for large facilities. The Clean Air Act requires large refineries and other facilities to always be regulated under the maximum toxic air standards if they qualify as a major source. Trump's EPA crafted a rule that would let those sources off the hook if they managed to lower their emissions — a policy that is expected to be reviewed early in the new administration. Bloomberg also notes that environmentalists are calling on the Biden administration to boost national ambient air quality standards, also called NAAQS, after the previous administration's refusal to beef up protections against dangerous levels of soot and smog pollution. Groups say that stronger NAAQS and the “once in always in” rule are particularly important in stemming the disproportionate air pollution burden carried by communities “on the fence line” of industrial facilities — often comprised predominately people of color. Although it was still enmeshed in lengthy legal battles, Trump administration softened rules on tailpipe greenhouse gas emissions and these are also likely on the Biden administration's radar. The two-part Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule scrapped California's historic waiver to set its own vehicle emission standards and pared back fuel efficiency standards for car manufacturers from 5% to 1.5%. The new administration's order says agencies “should consider the views of representatives from labor unions, States, and industry” when evaluating the rule. Finally, Bloomberg says the new EPA is set to examine emissions regulations for the oil and gas sector on methane, a highly potent greenhouse gas. The Trump administration last year scrapped 2016 methane leak monitoring requirements. The move was celebrated by smaller producers, though some large oil and gas companies in compliance with the Obama-era requirements criticized the rollback. Judges refused to put the rule on ice after environmentalists sued to freeze implementation. Legal challenges currently pending on Trump's methane, tailpipe, and other emissions rules could be declared moot when the new Biden administration starts new rulemaking. So, we will see. Clearly, the new administration is pressing for additional environmental rules, in part to replace those recently abandoned but also to impose tighter regulations in support of increasing environmental quality. These will be generally controversial and should be watched closely as they are proposed and litigated, Washington Insider believes.
| Rural Advocate News | Monday January 25, 2021 |
Farm Bureau Urges More Transparency, Adoption Of New Technology To Boost Confidence In NASS Data More transparency of the data released by the National Ag Statistics Service (NASS) and adoption of new and innovative technology would help improve confidence in the agency's estimates, according to a report from the American Farm Bureau Federation (AFBF). The group also said that the agency needs to deploy even faster computers and needs more resources to boost its development of more-innovative ways of data gathering and analysis. The group also pledged to work with NASS to help the effort to bolster their data, including what the group said was a key: “Finally, and most importantly, Farm Bureaus across the U.S. should actively work to encourage farmers' accurate and timely participation in NASS data collection efforts.” AFBF put the working group together after its members voted to have the group study the NASS data collection and reporting methodologies in the wake of surprise data releases from NASS in 2019 in the wake of flooding and weather-related planting delay
| Rural Advocate News | Monday January 25, 2021 |
Monday Watch List Markets Back from the weekend, traders will check the latest weather forecasts and watch for any new export sales announcements at 8 a.m. CST. USDA's weekly report of grain export inspections is due out at 10 a.m. CST, followed by a monthly cold storage report at 2 p.m. Some state NASS offices have Crop Progress reports scheduled for Monday afternoon, but there are no significant economic reports on the docket. Weather A snowstorm is in store for the central Plains and much of the Midwest Monday through Tuesday. Heavy snow, cold air and strong winds will be hazardous for transportation and will be stressful to livestock. The snow will offer benefits to southern Plains winter wheat. We'll also see moderate to heavy rain develop in the Delta and portions of the southern Midwest. Some far northern areas will have wind chill issues due to an incursion of cold air.
| Rural Advocate News | Friday January 22, 2021 |
Biden Names Acting Federal Agency Leaders President Joe Biden designated acting leaders to federal agencies to oversee the government until his political appointments are confirmed upon taking office. Biden assigned Kevin Shea as the acting Agriculture Secretary. Shea will assume the duties until the Senate confirms Biden’s pick, Tom Vilsack, for the top post at USDA. Shea has been administrator of USDA’s Animal and Plant Health Inspection Service since 2013. Vilsack is well-known to agriculture, serving as the Obama administration’s Agriculture Secretary. Biden also appointed Jane Nishida (nah-she-dah) as acting administrator of the Environmental Protection Agency. She is the Principal Deputy Assistant Administrator in the EPA Office of International and Tribal Affairs. She will assume the duties until Michael Regan, Biden’s pick to head the EPA, can be confirmed. Regan spent more than nine years working for the EPA under the Clinton and Bush administrations, and eight years at the Environmental Defense Fund. Regen has spent the last four years leading the North Carolina Department of Environmental Quality. ************************************************************************************ USDA Announces Three Deputy Undersecretaries The Department of Agriculture Thursday announced three senior appointments. USDA named nutrition policy expert Stacy Dean as deputy undersecretary for food, nutrition, and consumer services. Before joining USDA, Dean served as vice president for food assistance policy at the Center on Budget and Policy Priorities in Washington, D.C. USDA also announced Justin Maxson, CEO of the Mary Reynolds Babcock Foundation, as deputy undersecretary for rural development. The Mary Reynolds Babcock Foundation is an organization that works toward poverty alleviation and economic justice in southern states. USDA also announced Mae Wu as deputy undersecretary of marketing and regulatory programs. Before joining USDA, Wu served as a senior director at the Natural Resource Defense Council, helping to lead its health and food work. Katharine Ferguson, chief of staff in the Office of the Secretary, says, “We are honored to have professionals of the caliber of Stacy, Justin and Mae join our team.” ************************************************************************************ D.C. Circuit Court Stays Last-minute EPA Waivers The U.S. Court of Appeals for the D.C. Circuit ordered a temporary block to last-minute small refinery waivers issued by the Trump administration. The stay is in response to an emergency motion filed Tuesday evening by the Renewable Fuels Associations. Thursday, the court ordered that the Environmental Protection Agency action to grant three small refinery petitions must be “administratively stayed pending further order of the court.” The order prevents EPA from further processing the small refinery exemptions, at least until the court has had “sufficient opportunity to consider the emergency motion for stay.” EPA has until February 3 to respond to the motion, and any replies are due to the court by February 10. The stay was issued roughly 36 hours after EPA approved two 2019 waiver petitions and one 2018 petition, which—if allowed to stand—would waive another 260 million gallons of Renewable Fuel Standard blending requirements. RFA President and CEO Geoff Cooper says, “We took this action immediately to prevent the agency from doing further economic damage.” ************************************************************************************ Republican Senators Criticize Biden Action on Keystone XL Pipeline Following the executive orders signed by President Joe Biden, a group of Republican Senators announced opposition to the halting of construction of the Keystone XL Pipeline. The effort was led by Senator Steve Daines of Montana and Republicans from Idaho, Wyoming, Kansas, Oklahoma and North Dakota. Several other western senators are expected to sign on to legislation Daines will introduce to authorize the pipeline's continued construction. In a statement, the Senators say, “It’s only day one, and with the stroke of a pen, Biden has already taken steps to kill American energy projects.” The Senators claim revoking the Keystone XL Pipeline will drive up the price of gas at the pump, cost thousands of jobs, crush the energy industry and put the country back on a path to dependence on foreign oil. The pipeline is also a priority for Canada. President Biden is expected to meet with Canadian Prime Minister Justin Trudeau by phone Friday. ************************************************************************************ Tyson Agrees to Price-Fixing Settlement Tyson Foods this week agreed to $221.5 million to settle claims related to price-fixing lawsuits. The settlements are with three consumer and commercial purchasing groups who bought chickens directly from Tyson and require a federal judge's approval. Tyson did not admit liability in agreeing to settle and said the payments will be reflected in its first-quarter financial statements, according to Reuters. The company still faces price-fixing claims from large corporations, including Chick-fil-A, Walmart and Sysco. Earlier this month, Pilgrim’s Pride agreed to a $75 million settlement in the litigation. Sanderson Farms and Perdue Farms are also included in the litigation. The lawsuit claims chicken producers have conspired since 2008 to inflate prices through tactics such as restricting production and sharing nonpublic data about supply and demand. The U.S. Department of Justice in April of 2019 subpoenaed major chicken firms over the issue. The investigation followed a private antitrust suit brought in 2016 by chicken buyers seeking damages from major producers who allegedly conspired to raise prices. ************************************************************************************ Former Agriculture Secretary Perdue Privileged to Serve Farmers In modern societal norms, perhaps leaving your employer is not official until announced on social media. Former Agriculture Secretary Sonny Perdue did so this week via Twitter. Perdue stated, “It has been a privilege to serve America’s farmers, ranchers, and producers the past four years." The Trump-era head of the Department of Agriculture promised to continue to fight for U.S. agriculture. Perdue highlighted his visits to farms in all 50 states, saying, "I have learned that while accents and commodities may vary, the heart of the farmer remains the same.” Perdue calls agriculture a selfless profession of men and women who strive to feed a growing population. Perdue added, “I want to thank President Trump for the opportunity he gave me to serve you. Let’s continue to do right and feed everyone.” Perdue served as Agriculture Secretary throughout the entirety of the Trump administration, along with several familiar names to Midwest agriculture in other USDA positions.
| Rural Advocate News | Friday January 22, 2021 |
Washington Insider: Measuring Social Costs of Carbon Bloomberg is wandering fairly deeply into the regulatory weeds this week as it notes that the Biden climate agenda is working now to measure the “social costs” of carbon. The report highlights that among President Joe Biden's first acts in office was the reassembly of a cross-government team to figure out this cost that Bloomberg calls a “wonky number with broad impacts on federal agency rules.” The president signed an executive order Wednesday directing a team to publish an interim estimate of the social costs of carbon within 30 days. Environmentalists and climate scientists agree that undoing the Trump administration's rules regarding how these costs are calculated and used will play a big role in federal policy, as well as in states that take their lead from the federal government. Bloomberg explains that the issue is the estimated cost to society of releasing a ton of carbon dioxide, the main greenhouse gas, into the atmosphere. The revised metrics are to take into account everything from lost agricultural productivity to property damages from strong storms, to diminished fresh water availability – all because of climate change. Measuring the cost to society – real and potential – from greenhouse gas impacts affects how regulators weigh the costs versus benefits of proposed rules. If a rule change would increase emissions, the social costs of carbon are multiplied by the number of extra tons of greenhouse gases expected and added to estimates of the rule's costs. If a rule would lower emissions, the figure derived gets added to the benefits ledger. Actually, such calculations have been U.S. policy for some time, Bloomberg says. The Obama administration's Interagency Working Group on the Social Cost of Greenhouse Gases set the first federal social cost of carbon at $21 per ton. By the time President Obama left office in 2017, the figure had risen to $52 per ton. However, President Trump disbanded the working group by executive order soon after taking office and his administration came out with new estimates that were as low as $1 per ton. A figure that low makes it easier for agencies to issue new regulations that are much more permissive because they can more readily find benefits that outweigh the costs. Now, the new administration is reconstituting the former interagency working group, which pulls together experts from across the federal bureaucracy under the auspices of the White House Council of Economic Advisers and the Office of Management and Budget. The administration intends to estimate an “interim social cost” that ensures agencies are accounting for the full costs of pollution from carbon dioxide and other greenhouse gases, “including climate risk, environmental justice, and intergenerational equity,” Bloomberg says. In June, the Government Accountability Office said the EPA under the Trump administration had arrived at much lower estimates because, among other things, it only considered domestic rather than global costs. It is almost certain that the Biden team will revert to the government's pre-Trump approach. Michael Greenstone, an economics professor at the University of Chicago, said reverting to the Obama-era calculations would yield a social cost of carbon of $125 per ton, assuming it took into account lower interest rates in recent years. Bloomberg notes that the working group will be housed within the executive office, so the president has latitude to put the team back together without involving Congress directly. The same is true of calculating new cost estimates. Interagency task forces are a common approach for issues where more than one agency has a stake, said Naomi Oreskes, a climate science professor at Harvard University. And Biden wants climate considerations to be part of every agency's mission, not just the Environmental Protection Agency. “That's not to say that the usual suspects won't get out their forces to try to undermine, challenge, or deny” the working group's new findings, Oreskes said. “In the past they always have.” Any figure the Biden team comes up with almost certainly will be challenged extensively in court, so the new effort is expected to be defended through formal notice and comment procedures, Greenstone said. Just now, the legal status of “social cost” estimates in executive decisions is somewhat uncertain. Judges have ordered a lot of additional climate analyses recently but haven't often dealt directly with the cost impacts of carbon. When environmentalists have sued to force agencies to use the metric in their environmental reviews, courts have often required additional analysis but deferred to agencies to decide which analytical tools to use. The Federal Energy Regulatory Commission, for example, has for years rejected calls to consider the social cost of carbon in pipeline decisions, saying the metric is too speculative to be useful. Courts have largely accepted that, though groups are still pushing the issue in various cases. In one major 2020 ruling, a federal judge delved into the technical aspects of the social cost of carbon and faulted the Trump administration for using an estimate that ignored global climate impacts. So, we will see. The new administration appears to be quite serious about efforts to regulate impacts of climate change and can be expected to pursue a number of new rules for that purpose – including those concerning agriculture, which likely will continue to be highly controversial – and which should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Friday January 22, 2021 |
Biden Administration Halts All Pending Regulatory Actions The incoming Biden administration has ordered a halt to all pending regulations that were not finalized before the end of the Trump administration. That would include a handful of regulations from USDA, including the use of radio frequency identification (RFID) tags on cattle and bison. This is a usual step that takes place in a change of administration and comes after a review of virtually all regulations promulgated by the Trump administration, including ones linked to the Waters of the U.S. (WOTUS) rule put in place by the Obama administration and revised by the Trump administration.
| Rural Advocate News | Friday January 22, 2021 |
Temporary Leadership At USDA Named As with other government agencies, a series of officials have been put into temporary roles at USDA while the Biden administration assembles its team. Kevin Shea is serving as acting Agriculture secretary while Tom Vilsack awaits Senate confirmation. Shea has been the administrator of the Animal and Plant Health Inspection Service since 2013. Robert Bonnie, an advocate for creating an ag carbon bank at USDA, was named deputy chief of staff for policy and senior adviser for climate. He is a former USDA undersecretary for natural resources. Katharine Ferguson is USDA's new chief of staff. She held senior posts in the Obama administration. Matt Herrick is the communications director for USDA, having left the International Dairy Foods Association. Herrick previously served as a spokesman for USDA and then for the U.S. Agency for International Development during the Obama administration. Justo Robles, a Biden campaign official, will be the White House liaison. Robles was the campaign's deputy coalitions director in Georgia. Sara Bleich, a professor at Harvard's Chan School of Public Health, was named senior adviser to Vilsack for COVID-19. Kumar Chandran, a former chief of staff to the department's undersecretary for food, nutrition and consumer services in the Obama administration, was named senior adviser to Vilsack on nutrition.
| Rural Advocate News | Friday January 22, 2021 |
Friday Watch List Markets Friday morning starts with USDA's weekly export sales report at 7:30 a.m. CST, followed by a report on U.S. existing home sales at 9 a.m. The Energy Department's weekly natural gas inventory is set for 9:30 a.m. and other energy inventories follow at 10 a.m., including ethanol. At 2 p.m. CST, USDA releases its estimate of U.S. cattle on-feed for Jan. 1. Weather Light to moderate rain is in store for the Deep South and Southeast Friday. Other crop areas will be mainly dry except for light snow crossing the central Plains. Rain and snow are indicated for the Plains and Midwest later Saturday through Sunday. Temperatures have a more seasonally cold trend through the weekend.
| Rural Advocate News | Thursday January 21, 2021 |
Ag and Food Groups Welcome President Biden Agriculture groups welcomed President Joe Biden to Washington, D.C., while looking forward to tackling current issues. American Farm Bureau Federation President Zippy Duvall says AFBF "congratulates President Joe Biden,” adding the same for Vice President Kamala Harris “as she makes history as the first woman to serve as America's vice president." Duvall laid out the issues facing rural America in his statement, including labor, broadband and sustainability goals, adding, "Let's get to work on solutions." National Farmers Union President Rob Larew says, “We stand ready to work with the Biden administration to ensure they are implemented in a way that supports the success” of farmers and ranchers. While congratulating Biden, American Feed Industry Association President and CEO Constance Cullman stated, “Our country is facing tough challenges, but just as a farmer does not give up on farming after a difficult growing year, we will not give up in our belief that we can and will meet these challenges.” ************************************************************************************ Biden Signs Executive Orders Following Inauguration Day one of the Biden administration brought several executive orders signed by the President, including those reversing actions taken during the Trump Administration. President Joe Biden called for unity during his inauguration speech, stating, "We must end this uncivil war that pits red versus blue, rural versus urban,” before planning to sign 17 executive orders later in the day. Of note to rural America and agriculture, the actions include an executive order to rejoin the Paris Climate Agreement and to block the Keystone XL pipeline. Another executive order halts construction of the border wall by terminating the national emergency declaration used to fund it. Another action seeks to rejoin the World Health Organization. Additionally, the President took steps to extend COVID-19 policies around evictions and student loans. Other actions include executive orders covering human rights, Immigration and ethics. However, his first action created a mask mandate on federal property and public transportation. ************************************************************************************ USDA Announces Key Staff Appointments The Biden-era Department of Agriculture Wednesday announced the names of those who will hold senior staff positions in Washington, D.C. Gregory Parham was named Interim Deputy Assistant Secretary for Administration. Parham served as Assistant Secretary for Administration from 2013-2016. Katharine Ferguson was named Chief of Staff in the Office of the Secretary. Ferguson served in the Obama Administration as Chief of Staff for the White House Domestic Policy Council and as Chief of Staff for Rural Development at USDA. Robert Bonnie was named Deputy Chief of Staff for Policy and Senior Advisor for Climate. Bonnie led the USDA transition team for the Biden administration. Sara Bleich was named Senior Advisor for COVID-19. From 2015-2016, she served as a White House Fellow in the Obama Administration. Kumar Chandran was named Senior Advisor for Nutrition. He served as Chief of Staff to the Undersecretary for Food, Nutrition, and Consumer Services in the Obama Administration. And Justo Robles was named White House Liaison. Before joining USDA, Robles served as Georgia Deputy Coalitions Director for Biden for President. ************************************************************************************ China Hopeful for Better U.S. Relations with Biden Administration With President Joe Biden taking over in Washington, D.C., China retired it’s claimed stance of improving relations with the United States. A Chinese government official stated Wednesday, “We are committed to developing a relationship with the United States.” That would include trade relations following the Trump trade war. Last week, The U.S. China Business Council called for an end to the trade war, stating failing to do so would cause both short-term shocks to company supply chains. China also issued sanctions on former Trump administration officials Wednesday, as President Biden was sworn into office. Those sanctions included Former Secretary of State Mike Pompeo, who was a vocal critic of China. When asked if the nation will miss Pompeo as an “easy target,” a Chinese Foreign Affairs spokesperson says, "Of course. He's such a good laughing stock. It's like a new drama every day. But I think he has done irreparable damage to the U.S. national image and reputation.” ************************************************************************************ RFA Files Petition and Emergency Motion to Halt Last-minute SREs The Renewable Fuels Association filed a petition for review and an emergency motion to stay the effectiveness of three small refinery exemptions granted Tuesday. The Environmental Protection Agency announced the waivers with less than 24 hours remaining in the Trump administration. RFA’s emergency motion says, “EPA’s decision will inflict substantial, immediate, and irreversible harm.” Data released by EPA Tuesday evening show that the two 2019 compliance exemptions reduced that year’s RFS standards by 150 million gallons, while one 2018 exemption erased 110 million gallons of renewable fuel requirements. The total eliminated volume of 260 million gallons is equivalent to shutting down three or four ethanol plants for a full year, according to the Renewable Fuels Association. RFA President and CEO Geoff Cooper says the waivers "are completely without legal merit," adding the organization's request seeks to immediately prevent the agency from doing further economic damage to the ethanol industry. ************************************************************************************ Commodity Classic Announced Dates for Virtual Event Commodity Classic has set the dates for its 2021 Special Edition, which will take place March 2-5, 2021, as a digital experience. Registration will open Tuesday, January 26, 2021, at CommodityClassic.com. The registration fee is waived for the first 5,000 farmers. All other registrants and farmers after the first 5,000 will be charged $20. The registration covers all online educational sessions and events and access to all archived sessions through April 30, 2021. Organizers say the digital experience will focus on providing educational sessions and farmer networking opportunities. Participating sponsors will showcase new products, services and innovation through a variety of online presentations, educational sessions and interactive discussions. Additionally, a lineup of agriculture thought leaders, top-yielding farmers, agribusiness representatives and Commodity Classic association leaders are expected to be on the schedule. In October, Commodity Classic announced that it was pivoting to a digital event due to restrictions related to the COVID-19 pandemic. The 2021 Commodity Classic was originally scheduled for San Antonio, Texas, in early March.
| Rural Advocate News | Thursday January 21, 2021 |
Washington Insider: Biden Administration Policy Shifts Bloomberg, and others, are reporting this week that Janet Yellen could be in place as Treasury Secretary as soon as Thursday, even after her attempts to sell President Joe Biden's $1.9 trillion stimulus plan “faced early Republican opposition during her confirmation hearing. The report said that Biden's pandemic relief plan — announced last week — would provide funding for states and schools, increase unemployment benefits, provide more generous economic impact payments, and increase the federal minimum wage. The breadth of the package was criticized by outgoing Senate Finance chair Chuck Grassley, R-Iowa, who called the plan a “laundry list of liberal structural economic reforms,” arguing that it isn't well targeted. Yellen, former chair of the Federal Reserve, urged Congress to “act big” on stimulus and cautioned against economic “scarring” if it takes too long for more relief to pass. Additional aid, focused on small businesses and the unemployed, would provide “the biggest bang for the buck” to get the country's pandemic-hit economy back up and running again, Yellen said on Tuesday before the committee. Investments in infrastructure and tax hikes on corporations and the wealthy could come later, Yellen also said. Sen. Ron Wyden, D-Ore., who is poised to lead the panel, pushed for the Thursday timeline for confirming Yellen. She would be the first woman to assume the Treasury Secretary role. “As we continue to deal with the worst economic crisis in a century, it's critically important that she be leading the Treasury Department as soon as possible,” Wyden said. Three new senators — Jon Ossoff, D-Ga., Raphael Warnock, D-Ga., and Alex Padilla, D-Calif., — were sworn in on Wednesday. Padilla was chosen to replace Vice President-elect Kamala Harris, who recently resigned from the Senate. The newest senators will give Democrats control of the evenly split Senate — with Harris as the tie-breaking vote — and the power to move Biden's agenda forward. Incoming Senate Majority Leader Chuck Schumer, D-N.Y., will be looking to Senate members who cross party lines from time to time to help him break through on expected stalemates. That group of Senators could include Democrats Joe Manchin of West Virginia and Chris Coons of Delaware, and Republicans Susan Collins of Maine, Lisa Murkowski of Alaska and Mitt Romney Utah, who had a hand in pushing forward the recent $900 billion virus relief package. Morgan Stanley analysts, in a note on Tuesday, said they expect lawmakers to reach consensus on only “select provisions” of Biden's proposals, specifically, an increase in the corporate tax rate to 25% and a return of the top individual rate to 39.6%. They also expect a “modest increase in capital gains and qualified dividend tax rates” for people with incomes above $1 million. None of these changes are likely to happen immediately and the tax increases aren't expected to be retroactive, the analysts' note said. The Trump administration recently released a recent barrage of moves against Beijing in its waning days, claiming that they are necessary to stand up to China's authoritarian leadership. The last-minute policy moves mean the new administration is facing political pressures from a declaration that Beijing was committing genocide against Uyghurs and other Muslims in Xinjiang in far-western China. While some of the final decisions by the Trump administration were said to have been in the making for months, the timing of their rollout makes them easy to dismiss, the Times said. However, Biden's pick to lead the State Department, Alex Blinken, told lawmakers at his Tuesday confirmation hearing he agreed with the designation of genocide relative to the situation in Xinjiang. In the short term, the recent moves by the Trump administration may force the issues to the front of Biden's China agenda, regardless of his own priorities. This complicates the new administration's plans to maintain a combative stance on China over human rights and other issues while finding areas to cooperate and stabilize Washington's spiraling relationship with Beijing. But the new administration also has said that it will first focus on domestic priorities and may not have the “bandwidth to maintain the confrontation with China that the Trump administration set in motion.” Faced with the last-minute barrage from Washington, Beijing has so far demonstrated relative restraint. In recent weeks, the Chinese state media dismissed Pompeo as “crazy” and the “worst secretary of state in history.” However, it remains to be seen whether Beijing will take a confrontational or cooperative approach toward the Biden administration in its first days. Beijing has made overtures to Biden, calling for a reset and greater cooperation between the two countries. But it has also spread new conspiracy theories connecting an American military lab to the coronavirus and pushed a nationalistic message that in the face of global challenges, “time and momentum are on China's side.” Secretary Pompeo's move to shift key U.S. policies at the end of the administration looked more like efforts to challenge Biden to defy China regardless of the potential risks to Taiwan, the Times said. The shift “is designed to antagonize China,” said Drew Thompson, who was the Pentagon's director for China from 2011 to 2018 and is now a research fellow at the Lee Kuan Yew School of Public Policy in Singapore. It's not based on the mutually beneficial interests of Taiwan and the U.S.” So, we will see. The new administration says it is determined to change the economic outlook and to provide effective support to the economy. These changes will affect most economic sectors and likely will be controversial — changes producers should watch closely as these debates emerge, Washington Insider believes.
| Rural Advocate News | Thursday January 21, 2021 |
CFAP 2 Payments Move Up To $13.2 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) totaled $13.23 billion as of January 18, according to Farm Service Agency data, with 891,719 applications approved. The total includes $6.2 billion in acreage-based payments, $3.42 billion for livestock, $2.36 billion for sales commodities, $1.2 billion for dairy and $56.1 million for eggs/broilers. The total for CFAP 1 is put at $10.55 billion, including $5.05 billion for livestock, $2.66 billion for non-specialty crops, $1.8 billion for dairy, $930.1 million for specialty crops, and $119.7 million for aqua nursery flora. The latest totals for the two programs do not appear to include any of the top-up payments to hog producers under CFAP 1 and producers were able to start amending their prior CFAP applications January 19 for additional assistance announced by USDA January 15.
| Rural Advocate News | Thursday January 21, 2021 |
Only One USDA Reg On Biden Review List The incoming Biden administration plans a review of scores of regulations put forth by the Trump administration, many of them dealing with energy and climate issues. USDA only had one regulation show up on the lengthy list – a rule on “Special Areas; Roadless Area Conservation; National Forest System Lands in Alaska.” However, the biggest list of regulations that will be reviewed were from EPA with 48. One that ag interests will be watching closely is the definition of the definition of Waters of the United States that was issued in April as part of the Trump administration's actions to get rid of the WOTUS rule propagated by the Obama administration. A total of 31 rules issued by the Interior Department will be covered by the review.
| Rural Advocate News | Thursday January 21, 2021 |
Thursday Watch List Markets The U.S. Labor Department's weekly jobless claims is due out at 7:30 a.m. CST along with a report on U.S. housing starts for December from the U.S. Commerce Department and an update of the U.S. Drought Monitor. The latest weather forecasts and any export sale news will also get the market's attention. Due to this week's holiday schedule, USDA's weekly export sales report will be released Friday morning at 7:30 a.m. CST. Weather Thursday will be dry across central U.S. crop areas. We'll see rain in the southern tier and mixed precipitation in the Northwest. Temperatures will be mild for the season.
| Rural Advocate News | Wednesday January 20, 2021 |
Trump EPA Issues Last-Minute SRE’s In a last-minute effort, the Trump administration’s Environmental Protection Agency issued three small refinery exemptions. The action reverses one denial from 2018 and granting two for the 2019 compliance year. The decision comes on the heels of the Supreme Court’s agreement to hear a Tenth Circuit case that overturned three small refinery exemptions that had been inappropriately granted. In a statement, Growth Energy CEO Emily Skor called on the incoming Biden Administration to reverse harm done to rural America through SRE abuse. Skor says, “. Given President-elect Biden’s commitments on the campaign trail, we‘re confident his incoming team will swiftly work to reverse the damage these oil handouts have done to rural America by this midnight maneuvering.” Rumors that the EPA was prepping to issue the three waivers surfaced last week. EPA’s action brings the total of SREs granted by the Trump Administration to 88, totaling 4.3 billion gallons of biofuel blending demand destroyed. ************************************************************************************ Ag Groups Welcome Biden Picks for Agriculture Deputy Secretary Farm groups applaud incoming President Joe Biden’s pick for Department of Agriculture Deputy Secretary. Biden recently announced the nomination of Dr. Jewel Bronaugh (bruh-nah) to the post. Bronaugh, in 2018 was appointed as the Virginia Department of Agriculture and Consumer Services Commissioner. She previously served as the Virginia State Executive Director for the USDA Farm Service Agency during the Obama administration. American Farm Bureau Federation President Zippy Duvall says, “Dr. Bronaugh’s nomination, as well as the nomination of Tom Vilsack for Secretary of Agriculture, shows President-elect Biden is carefully considering the challenges facing our nation’s farmers.” National Farmers Union President Rob Larew says, “Under Dr. Jewel Bronaugh’s leadership, the USDA will be in good hands,” adding, “As the first Black woman to hold this position, Dr. Bronaugh also brings an important perspective to the USDA.” Bronaugh has more than 20 years of experience in food and agricultural issues. If confirmed, she would be the first Black woman to hold the second-in-command position at USDA. ************************************************************************************ USDA and FDA Sign MOU on Animal Biotech Regulations The Department of Agriculture and Food and Drug Administration signed a memorandum of understanding to establish a regulatory environment at USDA for agricultural animal biotechnology innovation. The agreement allows USDA to lead animal biotech regulatory framework. Agriculture Secretary Sonny Perdue stated the effort "clears a path to bring our regulatory framework into the 21st century." The MOU outlines responsibilities concerning the regulation of certain animals developed using genetic engineering intended for agricultural purposes. The MOU complements USDA's issuance of an Advanced Notice of Proposed Rulemaking on the Movement of Animals Modified or Developed by Genetic Engineering on December 28, 2020. Under this framework, USDA would safeguard animal and human health by providing end-to-end oversight from pre-market reviews through post-market food safety monitoring for certain farm animals modified or developed using genetic engineering intended for human food. The MOU also allows for the transition of portions of FDA’s pre-existing animal biotechnology regulatory oversight to USDA. ************************************************************************************ USDA Improvements to Livestock Risk Protection Insurance Program The Department of Agriculture Tuesday announced further changes to the Livestock Risk Protection insurance plan will take effect on January 20 for crop year 2021 and succeeding crop years. The changes are part of the last-minute regulatory push by the Trump administration. Outgoing USDA Risk Management Agency Administrator Martin Barbre says, “These changes are a direct reflection of that feedback and will improve LRP coverage for producers in 2021 and beyond.” USDA says the improvements include increasing livestock head limits for feeder and fed cattle to 6,000 head per endorsement or 12,000 head annually and swine to 40,000 head per endorsement or 150,000 head annually. Additionally, the changes announced Tuesday modify the requirement to own insured livestock until the last 60 days of the endorsement. USDA is also increasing the endorsement lengths for swine up to 52 weeks and creating new feeder cattle and swine types to allow for unborn livestock to be insured. ************************************************************************************ USDA Issues Domestic Hemp Production Final Rule Notice The flurry of last-minute regulations from the Trump administration includes a final rule concerning Domestic Hemp Production. The Department of Agriculture published the final rule notice in the Federal Register Tuesday. The U.S. Hemp Growers Association says the final rule appears to address many of the concerns the organization expressed during a comment period. Changes include allowing a producer a maximum of one negligent violation in a growing season, but the threshold for finding such negligence is moved from .5 percent to one percent. Alternative disposal for non-compliant plants will be outlined in a separate remediation techniques paper from the USDA Agricultural Marketing Service. Disposal and remediation measures will be expanded. Because there are not enough Drug Enforcement Administration registered laboratories to test all hemp in 2020 and 2021, non-DEA registered labs will be recognized for testing until January 1, 2022. Sample collection is expanded to 30 days before harvest instead of the former 15 days. ************************************************************************************ United Soybean Board Partnership Launches Pilot Phase of Sustainably Grown U.S. Soy Mark The United Soybean Board is teaming up with partners from Soylent and DuPont Nutrition and Biosciences this spring in a pilot program identifying their products and ingredients as being made with sustainably grown U.S. soy. The companies will use the new Sustainably Grown U.S. Soy mark, which recognizes soy ingredients that have originated from a system of continuous improvement. The goal of this food industry innovation is to improve sustainability in product supply chains from farm to fork. The Sustainably Grown U.S. Soy mark is based on a national system of sustainability and conservation laws and regulations and farmer participation in the U.S. Farm Program. It seeks to increase demand for soybeans grown by U.S. farmers who commit to conservation practices. Products carrying the mark contain soy ingredients grown in the United States, compliant with all U.S. environmental regulations, protect highly erodible soils and wetlands and were grown on family farms with responsible labor practices. ************************************************************************************ Gas and Diesel Prices Rising Fuel prices are rising in the new year, with the national average gas price reaching $2.38 a gallon this week. The national average price of diesel increased 2.6 cents in the last week and stands at $2.62 per gallon. Patrick DeHaan of GasBuddy says, "Gas prices have jumped to yet another multi-month high as crude oil price rise amidst perceived improvement in the COVID-19 pandemic.” Additionally, rumors incoming President Joe Biden will cancel approval of the Keystone XL pipeline after inauguration Wednesday would cut off reliable Canadian oil to the U.S., according to DeHaan. He says oil prices may see additional pressure in the coming days, but says not to expect much of a break from rising gas prices, which now stand less than twenty cents from their year-ago levels. The price of West Texas Intermediate crude oil continued to rally over the last week as a weakened U.S. dollar, as well as continued market optimism, have boosted oil prices.
| Rural Advocate News | Wednesday January 20, 2021 |
Washington Insider: New Turn Toward Science Bloomberg is reporting this week that a new round of scientific nominations and vaccine plans is being debated by President-elect Biden's transition team and suggests that the incoming administration is vying to make good on promises to build on science-based policy decisions. Throughout his campaign and after the election, Biden promised to make such decisions, which he reiterated during remarks on Friday regarding a new vaccine “rollout.” He said his administration “will lead with science and scientists,” and the most recent slate of personnel announcements seems to back that up, Bloomberg said. When leading geneticist and Broad Institute founder Eric Lander becomes Biden's science adviser and head of the White House's Office of Science and Technology Policy (OSTP), it will mark the first time a president has elevated the position to the cabinet. The Biden team also announced a slate of other top positions in OSTP. Several groups have advocated for years for elevation of the science adviser to the cabinet and are calling the inclusion of Lander as “an urgently important, strategic turning point for our nation.” They called the announcement as “an all-too-clear harbinger,” Bloomberg said. The Biden approach contrasts to that of the last administration, the report said, and noted that President Donald Trump didn't name a science adviser for over a year and half into his administration, marking the longest vacancy in that position since Congress created it in 1976. “An evidence-based approach to policy must direct the way forward on the nation's health challenges,” said David Skorton, president and CEO of the Association of American Medical Colleges. President-elect Biden plans an early blitz of executive action to reverse some of President Trump's most contentious policies in an effort to address the pandemic, according to an outline of Biden's first 10 days in office. The plan, spelled out in a memo over the weekend by Biden Chief of Staff Ron Klain to incoming White House advisers, will address what Klain called “four overlapping and compounding crises,” with COVID-19 at the top. Klain said Biden would begin with about a dozen executive actions today, and that the so-called first-day orders will focus on measures to mitigate the pandemic and its economic fallout and also will include extending student loan forbearance past Jan. 31 and a temporary ban on evictions, Klain said. Biden also will launch a “100 Day Masking Challenge,” imposing new mandates requiring masks on U.S. property and for interstate transportation. The incoming administration's promise of administering 100 million doses of the COVID-19 vaccine in 100 days is “absolutely a doable thing,” Dr. Anthony Fauci said. Fauci, head of the National Institute of Allergy and Infectious Diseases, said he believes that Biden won't hesitate to “use whatever mechanisms we can” to expedite the production and distribution of more shots, including through the Defense Production Act. “The feasibility of his goal is absolutely clear,” he said. Biden also intends to install David Kessler, who served as commissioner of the Food and Drug Administration in the 1990s, to serve as the chief science officer of the COVID-19 response. His job will include steering what the Trump administration had called Operation Warp Speed. He will replace Moncef Slaoui, who served as science chief for the vaccine development and distribution initiative for the Trump administration. Reports indicated that the incoming administration will reject a move by President Trump to rescind coronavirus-related travel bans for non-American citizens arriving from the European Union, the UK and Brazil, which means the curbs will stay in effect. Trump said in a White House announcement Monday that the bans could be lifted because of a decision last week by the administration to require international travelers to present either the results of a negative recent coronavirus test or evidence that they had already recovered from the disease, but the incoming administration plans to block Trump's move. The new virus variant that emerged in the UK could become dominant in the U.S. as soon as March, government public-health researchers said in a report Friday. Several lines of evidence indicate the strain spreads faster than other versions, and steps should be taken to reduce its transmission, including further genomic surveillance and adherence to public-health measures like masks and testing, the CDC said. In the meantime, efforts are still underway to find out where and how the virus began. The state department on Friday said it has new information suggesting the pandemic may have emerged from a laboratory in Wuhan and not contact with infected animals, the latest salvo in the outgoing administration's efforts to pressure Beijing over the virus's origins. In response, China accused the U.S. of spreading “lies” and “conspiracy theories.” The state department's “fact sheet” on the coronavirus origins released Friday was “full of fallacies,” Foreign Ministry spokeswoman Hua Chunying charged, dismissing the claims as the “last madness” of outgoing Secretary of State Michael Pompeo. So, we will see. The new administration appears to be moving rapidly to assume control of the government, and to nominate and confirm officials. Still, the tensions over how extensive the policy changes will turn out to be should continue to be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday January 20, 2021 |
Biden Names Top Deputy Picks For Several Agencies President-elect Joe Biden on Monday nominated five deputies to serve in the second spots at USDA, Transportation, Health and Human Services (HHS), Interior and Education. The nominees, who must be confirmed by the Senate, include Jewel H. Bronaugh at USDA; Polly Trottenberg at Transportation; Andrea Palm at HHS; Elizabeth Klein at Interior, and Cindy Marten at Education. Klein, Palm, Bronaugh and Trottenberg worked in their same departments during the Obama administration. Bronaugh would be the first Black woman to serve in the senior role at USDA. Biden had been under pressure to nominate a Black person to be Agriculture secretary but went with Tom Vilsack, who had the role under President Barack Obama.
| Rural Advocate News | Wednesday January 20, 2021 |
USDA Publishes Final Rule On Hemp Production USDA Monday published its final rule to be the framework for the U.S. hemp industry. The 301-page package includes some changes from an October 2019 interim final rule that provided initial guidelines to implement the 2018 Farm Bill which removed hemp from the Controlled Substances Act and set a legal definition for hemp as 0.3 delta-9-tetrahydrocannabinol (THC) on a dry weight basis. The finished regulations come after 5,900 public comments and letters from members of Congress. The final rule package takes effect March 22 and provides steps for USDA to review and approve plans submitted by state, territorial and tribal governments for regulating hemp production. The rules also lay out how the department will regulate farmers in states or tribal lands that have not outlawed hemp but also have not submitted plans. Under the final rule, farmers will not be labeled as negligent if test samples of their hemp crop register at 0.5% (THC) on a dry weight basis. The regulation would put the negligent threshold at 1% THC. Being declared negligent three out of five years could result in a farmer being barred from hemp production for five years. The hemp industry argued that given the volatile nature of THC in hemp plants that a farmer who followed all the rules could still exceed the 0.5% threshold. The rule also would allow farmers with crops that test above 0.3% THC level to continue to dispose of so-called hot plants by plowing the plants under to amend the soil, cutting and blending the plants with manure or other material to make compost and burning the plants. The options allow farmers to get some use out of the plants or avoid more costly methods of destruction.
| Rural Advocate News | Wednesday January 20, 2021 |
Wednesday Watch List Markets Other than a January index of U.S. homebuilder activity at 9 a.m. CST, there are no official reports scheduled for Wednesday, the day of inauguration for the next U.S. president, Joe Biden. Traders will continue to watch the latest forecasts and any export news that surfaces. Wednesday's usual energy inventory reports are due out Friday. Weather Dry conditions are in store across the central and northern U.S. Wednesday. Precipitation will focus in southwestern Texas with areas of rain and some snow. Temperatures will be seasonal to above normal.
| Rural Advocate News | Tuesday January 19, 2021 |
Mark Poeschl resigns as CEO of National FFA Organization and National FFA Foundation The National FFA Board of Directors and National FFA Board of Trustees announced the resignation of as CEO of the National FFA Organization and National FFA Foundation, effective January 15. In a statement, Poeschl said, “I know there have been challenges we have faced during my tenure, but my intentions have been for the best interests of FFA and our student members.” He adds, “I'm proud of what we have accomplished together, but now it's time for the next CEO of FFA to step in and make their mark.” Dr. James Woodard, National FFA Advisor and Board Chair, says, “Mark informed us Thursday that he has decided to end his role as National FFA CEO. The board wishes Mark well, and we acknowledge the impact he has made in the last four and a half years as National FFA leader.” Poeschl began his tenure leading FFA in 2016, from Cargill Animal Nutrition. ************************************************************************************ EPA Won’t Decide on RFS Waiver Requests The Environmental Protection Agency said last week it proposes to extend refiner deadlines to prove compliance with biofuel laws. Reuters says the agency is signaling that it won’t decide on many of the pending waiver requests submitted by the industry. It’s mixed news for refiners who’ve been hit hard by the slump in energy demand during COVID-19 and are looking to decrease regulatory costs associated with the U.S. biofuel blending policy. It’s also one of the final actions the EPA will take before President Trump leaves office on January 20. The agency will propose to extend the compliance deadline for 2019 biofuel blending obligations to November 30, 2021. The EPA will move the 2020 deadlines to January 31, 2022, and June 1, 2022. Refiners must turn in their credits to the EPA every year to prove they’ve complied with the annual biofuel blending obligations for the previous calendar year. The EPA also says it won’t take a position on the availability of 2019 small refinery waivers, which can exempt oil refiners from their obligations to blend biofuels into the nation’s fuel supply. The decision is related to the pending litigation on the waiver program. ************************************************************************************ Corn and Soybean Export Sales Jump Higher Corn export sales almost doubled week-to-week while soybean sales also jumped higher. The USDA says corn sales to overseas buyers jumped 92 percent week-to-week to 1.44 million metric tons. That’s up 34 percent over the prior four-week average. Japan was the biggest buyer at more than 401,000 metric tons. An unnamed buyer purchased 334,000 tons, and Columbia bought almost 126,000 metric tons. China was in for another 88,500 tons, while El Salvador canceled a shipment of 24,000 tons. Exports totaled 1.46 million metric tons last week, 43 percent higher than the previous week, and 41 percent from the average. Soybean sales totaled 908,000 metric tons, significantly higher last week’s marketing year low of almost 37,000 tons and the highest number since November 12. China was the biggest buyer again, purchasing 758,300 metric tons. Other significant buyers included Spain, Mexico, the Netherlands, and Pakistan. Last week’s export total was 2.04 million metric tons, up 10 percent from the previous week but down 12 percent from the average. Wheat sales through January 7 totaled almost 222,000 metric tons, down 19 percent week-to-week and 49 percent from the four-week average. ********************************************************************************************** NCFC Unhappy with IRS Rule on “Grain Glitch” The Internal Revenue Service released its final rule on how farm income from cooperatives will be handled for tax purposes. The Hagstrom Report says the regulation has been a source of dispute since Congress passed the 2017 Tax and Jobs Act. The IRS says Section 199A of the law provides taxpayers a deduction of up to 20 percent of income from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust, or estate. The IRS says that “Section 199A(b)(7) requires patrons of Specified Cooperatives to reduce their Section 199A(a) deduction if those patrons receive certain payments from Specified Cooperatives.” Farm leaders say that interpretation doesn’t follow congressional intent and called it the “grain glitch” in the law. However, the IRS issued the rule which will be published on Tuesday, the day before Donald Trump leaves office. “We find it deeply troubling that in the final days of the administration, the IRS ignored what Congress wanted and issued final regulations implementing Section 199A that will raise taxes on farmers across the country,” says Chuck Conner, president of the National Council of Farmer Cooperatives. “The Treasury Department is siding with large multinational grain companies and Wall Street at the expense of hardworking farmers and rural communities.” *********************************************************************************************** USDA Offering Additional Assistance Through CFAP Ag Secretary Sonny Perdue says the USDA will provide additional assistance through the Coronavirus Food Assistance Program. The agency will be expanding eligibility for some agricultural producers and commodities and updating payments to accurately compensate some producers who already applied to the program. Producers who are now eligible and those who need to modify existing applications due to these updates can contact the USDA’s Farm Service Agency between January 19 and February 26. “The coronavirus has left a deep impact on the farm economy, and we are utilizing the tools and monies available to ease some of the financial burdens on American producers to ensure our agricultural economy remains strong, independent, and a global leader in production,” Perdue says. Among some of the changes, contract producers of swine, broilers, laying hens, chicken eggs, and turkeys who suffered a drop in revenue in 2020 compared to 2019 because of COVID-19 are now eligible for assistance. Also, producers of pullets and turfgrass sod are now eligible for CFAP payments. Those commodities weren’t explicitly included in the initial CFAP 2 rules. Producers can learn about the other changes at www.farmers.gov/cfap. ********************************************************************************************** Drought Conditions Slowly Improving in South America Argentina received much-welcomed rains in areas like La Pampa and many Buenos Aires locations into central Cordoba, San Luis, and southern Santa Fe late last week. Moisture totals varied from .2 to .88 inches of rain, with local totals of one inch to more than three inches in southern Santa Fe and southeastern Cordoba. The moisture combined with the rain falling earlier last week, as well as the rain expected over the past weekend, should help South American crops coast into this week’s dry and warmer weather without a lot of concern over drought stress. Timely rain is going to be extremely important over the last week of January and into early February. However, current conditions are improving. A Bower Trading report says Brazil’s rainfall has been erratic recently, but enough rain is falling in the most important production areas. Two days’ worth of scattered showers and thunderstorms fell in the northern and western parts of the country’s crop-growing regions. The weather outlook in Brazil shows rain ahead for most of the key grain, oilseed, and cotton areas in South America. Drier weather is forecast in certain areas, but it will have a bigger impact on unirrigated coffee, cocoa, and small sugarcane fields, more so than it will on the coarse grains and oilseeds. ********************************************************************************************** Environmental Groups Sue Trump Administration Over Gray Wolf A coalition of environmental and wildlife advocacy groups filed suit against the Trump administration over the decision to remove the gray wolf from Endangered Species Protections. Back in October, the U.S. Fish and Wildlife Service lifted protection for the wolves in the continental U.S. The only exception is a small population of Mexican gray wolves in Arizona and Mexico. The decision brought 45 years of protections to an end for the wolves. The agency determined that the species was no longer endangered. The Hill Dot Com says protecting the species is now up to individual states, many of which will likely allow gray wolf hunting. Last Thursday, six environmental groups, including the Humane Society of the United States, filed a lawsuit challenging the delisting, arguing that the delisting is premature as the species hasn’t fully recovered in a big part of its former range across the United States. “We hope this lawsuit finally sets the wolf on a path to true recovery,” says Collette Adkins, carnivore conservation director at the Center for Biological Diversity. “Restoring federal protection would allow further recovery in places like California, which is now home to just a single pack of wolves.” More than 6,000 gray wolves live in the continental U.S., including over 4,000 in Michigan, Minnesota, and Wisconsin.
| Rural Advocate News | Tuesday January 19, 2021 |
Washington Insider: Coming Economic Policy Inheritance Bloomberg is reporting this week that President-elect Joe Biden stands to inherit a “line-up” of unresolved trade and other issues from President Trump and that these will “pose an early test for his administration even as it focuses on taming COVID-19 and repairing the domestic economy.” As Biden takes office tomorrow, the U.S. and China have tariffs on hundreds of billions of dollars of each other's goods. A long-running dispute with the European Union over illegal subsidies to Airbus and Boeing persists, the U.S. and UK have yet to reach a free-trade agreement, and the World Trade Organization is blocked from appointing a new leader because the U.S. objected to the leading choice. Then there's the overhauled North American Free Trade Agreement negotiated by outgoing U.S. Trade Representative Robert Lighthizer. The deal won Democratic support after changes were made in Mexico's labor system, as demanded by House Speaker Nancy Pelosi and engineered by her chief trade lawyer Katherine Tai, who now has been nominated for the post of USTR. The AFL-CIO labor union says it plans to bring a complaint under the deal, which could result in factory-specific tariffs or import prohibitions. With President Biden promising to prioritize healing the American economy savaged by lockdowns and job losses, trade might appear to be taking a back seat in the economic agenda. But Trump and Lighthizer gave trade such a central place in public attention that Biden may find the campaign that they started “impossible to ignore,” Bloomberg said. Tougher enforcement of trade rules “can be a key part of the President-elect's Build Back Better agenda,” Senator Ron Wyden, D-Ore., and incoming chairman of the Finance Committee responsible for trade, said last week. Wyden said he expects Biden to use trade as one element of a strategy of work with allies to confront China on human rights, labor rights and its treatment of the environment, and to make sure Mexico meets labor obligations. Bloomberg – and others – are saying that Biden's challenge will include “setting a new direction after Trump tore up the trade playbook. While Biden is unlikely to follow Trump's example of using obscure parts of trade law to slap tariffs on allies like the EU, he probably won't go back to the business-friendly stance of past presidents, either. In a speech last week, Tai pledged to pursue trade policies that benefit American workers, combat the threat of climate change — a non-consideration during the Trump years — and increase U.S. competitiveness. One of the pressures that she likely will face will be the balance between the interests of corporations and unions. The U.S. Chamber of Commerce wants to see the tariff dispute with Beijing resolved, especially since it sees China as the fastest-growing market for U.S. companies, while recognizing that it has some important, unfair trade and regulatory practices that need changing. Reciprocal tariffs imposed by China have hammered American agricultural producers and manufacturers. Still, the Biden administration may be wise to use the incentive of removing U.S. duties remaining on about $370 billion of annual Chinese goods imports as a way to exact policy changes that it wants from the world's second-biggest economy, said Demetrios Marantis, who served as deputy USTR under President Barack Obama and is now a senior vice president at Visa. Trump “is leaving a lot of things on the table,” said William Reinsch, a trade official in the Clinton administration and senior adviser at the Center for Strategic and International Studies. “The mantra for the Biden people has been mostly 'No sudden moves.' I don't think they're going to rush to fix all those things. I think they're going to take their time to review them.” Also, at least some U.S. economic prognosticators are looking somewhat farther into the future now, and noting that U.S. debt ceiling traders in short-term funding markets are already busy assessing the potential impact of a return to the U.S. debt ceiling as an issue likely to reappear in the second half of this year. The country's borrowing limit, which was suspended back in August 2019, is scheduled to come into effect once again on Aug. 1. Without a Congressional deal that extends or defers it once again, the Treasury will eventually have its ability to borrow curtailed, although it has historically found ways to delay officially hitting that limit. Perhaps more critically for dollar funding markets, the reinstatement of the ceiling is also likely to cause the Treasury to slash its cash holdings and the tools it uses to do that could have a market impact. The amount of cash that the Treasury currently holds is around $1.73 trillion, but it will need to whittle that down over the next seven months to its level when the last ceiling suspension took place – around $118 billion. That's a far bigger reduction than it has historically had to do around debt-limit episodes. The COVID-19 pandemic and the government's response to its economic fallout are at the heart of this dilemma. To fund emergency stimulus measures, the Treasury ramped up its issuance of debt – in particular short-dated Treasury bills. Now that they need to shrink the cash pile, there is a risk that the supply of bills will drop too quickly, forcing market rates below zero and forcing the central bank to intervene. So, we will see. Clearly, the new administration will need to undertake a considerable amount of heavy lifting in a short time, especially to meet its frequently challenging goals. These will be fights producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday January 19, 2021 |
US, Mexico Spar On Energy The outgoing Trump administration is upset over Mexico's preferential treatment of its state-owned energy companies, triggering concerns that could threaten U.S. ag exports. In a letter, Secretary of State Mike Pompeo, Energy Secretary Dan Brouillette and Commerce Secretary Wilbur Ross wrote to their counterparts in Mexico, the U.S. officials said that "recent regulatory actions by the Mexican government have created significant uncertainty about Mexico's regulatory processes, especially regarding the energy sector, and have damaged Mexico's overall investment climate," pointing to reports of a memo and meeting last year where regulators were "allegedly instructed to block permits for private sector energy projects and to exercise their regulatory authority to favor state-owned energy companies." If true, the secretaries warned, it would be "deeply troubling and raise concerns regarding Mexico's commitments" under the U.S.-Mexico-Canada Agreement. It is not clear how this situation will play out, but it will clearly fall to the Biden administration to sort the issue out.
| Rural Advocate News | Tuesday January 19, 2021 |
EPA Will Not Make Call On 2019 Refiner Waivers EPA is now proposing to extend the deadline for small refiners to show compliance under the Renewable Fuel Standard (RFS) for 2019 until Nov. 30, 2021 “in light of uncertainty surrounding small refinery exemptions (SREs) under the RFS program.” EPA is also proposing that for 2020, all obligated parties would have a compliance deadline of Jan. 31, 2022, and a June 1, 2022, attest engagement report deadline. The Supreme Court consideration of the 10th Circuit Court of Appeals decision that invalidated three SREs for the 2016 compliance year, EPA said the resolution of that process “has the potential to impact the availability of SREs going forward.” EPA's notice also stated “a presently unknown number of small refineries' compliance obligations will be affected by ongoing litigation and it is consistent with our eligibility requirements regarding SREs.” The decision to extend the 2020 compliance dates for all parties comes due to the agency not yet putting for the 2021 biofuel and 2022 biodiesel RFS levels, and action EPA said can impact the level of Renewable Identification Numbers (RINs) available as those have a two-year lifespan. While EPA does not state in the notice that it will not make decisions on 2019 or even 2020 SREs, it is clear the Supreme Court case will impact those decisions and thus that means reports the agency was prepared to grant a majority of the 32 pending SREs for the 2019 compliance year are not on the mark. EPA also made no reference to when they will propose the 2021 biofuel and 2022 biodiesel RFS levels. Given that situation, it would appear the Biden administration will now be the ones responsible for making the call on SREs and likely the 2021 biofuel and 2022 biodiesel RFS levels.
| Rural Advocate News | Tuesday January 19, 2021 |
Tuesday Watch List Markets After Monday's Martin Luther King Jr. holiday, U.S. grain futures open again Monday evening at 7 p.m. CST. No doubt, traders will be poring over the latest weather forecasts and watching for any export news Tuesday morning. USDA's weekly report of grain export inspections is due out at 10 a.m. CST. Weather Tuesday will feature light snow crossing the northern Midwest and areas of light rain in central Texas east to the Delta. Other primary crop areas will be dry. Temperatures will be near to below normal in the immediate Great Lakes and over southern areas, and seasonal to above normal elsewhere. The Pacific Ocean Southern Oscillation Index (SOI) shows strong La Nina values with a 30-day average of 18.56; 90-day average of 12.93; and a daily calculation of 22.99.
| Rural Advocate News | Friday January 15, 2021 |
Senators Call on EPA to Protect the Integrity of the RFS More lawmakers are pressing the Trump administration to avoid making any decisions on small refinery exemptions until after the Supreme Court rules in pending litigation. Thursday, a group of Midwest Senators penned a letter to the administration. The letter states, “Alarming new reports indicate that your Environmental Protection Agency may issue numerous pending small refinery exemptions which would be a devastating blow to biofuels producers and the farmers who sell to them.” The effort follows a similar letter by the House Biofuels Caucus earlier this week. The letters stem from a Reuters report that the Trump administration was readying three new waivers for compliance year 2019. The Senate effort includes Republican Chuck Grassley, Joni Ernst, both of Iowa, along with Roger Marshall of Kansas, Mike Rounds of South Dakota, and Roy Blunt and Josh Hawley of Missouri. Meanwhile, the EPA Thursday proposed extending the RFS compliance deadline for the 2019 compliance year to November 2021 and the 2020 deadlines to 2022. ************************************************************************************ Vaccine Hesitancy in Rural America A recent study finds rural residents are hesitant to receive the COVID-19 vaccine. The Kaiser Family Foundation COVID-19 Vaccine Monitor tracks the dynamic nature of public opinion as vaccine development unfolds. The Foundation is a nonprofit organization focusing on national health issues. The monitor shows three in ten people in rural areas say they will "definitely get" the vaccine, compared to four in ten people in urban areas and suburban areas. An additional one-third of people in rural areas say they will "probably get it" while 35 percent say they will either "probably not get it" or "definitely not get it." The report says there are many factors that are associated with an individual's willingness to get the coronavirus vaccine, including their age, level of education, and political party identification. The COVID-19 Vaccine Monitor finds that Republicans are much less likely to say they will get a coronavirus vaccine compared to their independent and Democratic counterparts. ************************************************************************************ KC Fed: Fewer New Loans to Farmers Fewer new loans to farmers continued to drive a pullback in agricultural lending activity. The Kansas City Federal Reserve Bank reported this week that stronger prices for agricultural commodities, alongside continued support from government payments, may have reduced financing needs for some farmers and contributed to the slower pace of lending. A historically low number of new loans contributed to an increase in average loan size and drove a slight decrease in the overall volume of non-real estate loans at commercial banks in the fourth quarter. Changes in the average size and number of loans were generally consistent across all types of loans. For all lending purposes, the number of loans decreased, and the average loan size increased. While there were fewer loans for all purposes, operating loans continued to comprise the majority of non-real estate lending and accounted for over half of the overall decline. Interest rates on agricultural loans remained at historically low levels in the fourth quarter. ************************************************************************************ NPPC Submits Comments on Proposed USDA Rule for Gene-Edited Livestock The National Pork Producers Council submitted commits to the Food and Drug Administration this week regarding gene-edited livestock. For more than two years, NPPC says the FDA “has dragged its feet” on the development of gene-edited livestock, an emerging technology with opportunity for livestock agriculture, causing American agriculture to “fall behind in the global race to advance its development.” However, a recently proposed rule would transfer primary regulatory jurisdiction of gene-edited livestock to the Department of Agriculture. In formal comments, NPPC President Howard AV Roth says many nations competing with the U.S. livestock sector already have or are moving to regulatory models that led to commercialization. Roth says, “This is already placing U.S. livestock and poultry producers at a disadvantage.” Gene editing is used to make specific changes within an animal’s own genome. NPPC says gene editing will allow the U.S. to produce animals that are more disease-resistant, require fewer antibiotics and with a smaller environmental footprint. ************************************************************************************ USDA Invests $11.65 Million to Control Feral Swine The Department of Agriculture is investing $11.65 million in 14 projects to help agricultural producers and private landowners trap and control feral swine. The investment is part of the Feral Swine Eradication and Control Pilot Program. The investment expands the pilot program to new projects in Alabama, Hawaii, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina and Texas. The pilot program is a joint effort between USDA’s Natural Resources Conservation Service and Animal and Plant Health Inspection Service. NRCS will provide funding to partners who will provide financial assistance, education, outreach and trapping assistance to participating landowners in pilot project areas. All partner work will be closely coordinated with the APHIS operations in those areas. Between the first and second round of funding, there will be a total of 34 active projects across 12 states for the life of the 2018 Farm Bill. NRCS Acting Chief Kevin Norton says, “The projects we have identified will be key to addressing the feral swine problem.” ************************************************************************************ WSSA Announces 2021 Virtual Meetings The Weed Science Society of America and two of its regional affiliates recently released details on their upcoming virtual annual meetings. The meetings are focused on research, innovations and best practices in weed control. The first, the Southern Weed Science Society annual meeting, takes place January 25-26. Based on the theme "Moving Obstacles," the session will kick off on January 25 with a day of virtual talks by student weed scientists. February 15-17, The Weed Science Society of America will hold its annual meeting. Five special seminars will be offered, including Advances in sensor-based weed detection and precision management, and a history, overview and plan of action on PPO-inhibiting herbicides. March 1-4, the Western Society of Weed Science will hold a joint meeting with the Western Aquatic Plant Management Society. Three seminars are planned for the joint event, including updates from weed biocontrol, invasive grass management, and the relationship between herbicide-resistant crops and weeds. Learn more about the meetings at WSSA.net.
| Rural Advocate News | Friday January 15, 2021 |
Washington Insider: The Coming Policy Wars Bloomberg is reporting this week that big business “is in a tight spot” just now. It thinks that rebellious Trump loyalists have amped up their influence over the Republican Party, which business traditionally leaned on for support—and that may not serve them well in the future. The tension comes from the fact that although President-elect Joe Biden is a moderate, “the Democratic Party's platform is the most left-leaning it's been in decades.” From a business standpoint we're concerned about the growing ranks of populist viewpoints in the Republican Party and the growing ranks of progressive and socialist viewpoints in the Democratic Party, says Neil Bradley, executive vice president and chief policy officer of the U.S. Chamber of Commerce. Big companies and business groups such as the Chamber are playing a delicate game, Bloomberg says. They're distancing themselves from President Trump as fast as they can and the bridge between big business and the Trump administration, never solid, is in “flaming ruins.” After the Jan. 6 invasion of the Capitol, Jay Timmons, president of the National Association of Manufacturers, called the storming of Congress to stop certification of the presidential election “seditious” and many other business interests agreed. “There is no place for demagogues in our democracy,” wrote the U.S. Chamber of Commerce, and the Business Roundtable sharply criticized allegations by President Trump and his supporters that the election was stolen. Individual companies also broke decisively with the administration, Bloomberg says. It calls the take that big business gathered courage to oppose Trump “only when he was heading out the door” as wrong. For example, Bloomberg says that chief executive officers had challenged Trump frequently on a wide range of issues from auto emissions to immigration and race. The report describes several prominent disagreements with businesses including Ford Motor Co., Exxon Mobil, BP, Shell and several others. In addition, numerous business organizations opposed administration tariffs on aluminum, steel, and other products, which incited retaliatory duties from China and other trading partners. “Trade works. Tariffs don't,” the U.S. Chamber of Commerce said. True, business wasn't always oppositional, Bloomberg says. The Tax Cuts and Jobs Act of 2017, which slashed the corporate income tax rate, was widely popular, as were some aspects of the deregulation efforts. And in 2019 Trump managed to bring some business bigwigs back into his tent with a new advisory group on workforce policy. On the whole, though, Trump steered the Republican Party in a populist direction, tapping into a disaffected part of America that dislikes business elites almost as much as political, academic, elites — and he remains the party's most powerful force. Bradley says the Chamber of Commerce has been deeply worried that the fringes of both parties are pulling the centrists apart. As a result, two years ago it changed its method for grading lawmakers to take cooperation across the aisle into account, honoring people such as Democratic Representative Josh Gottheimer of New Jersey and Republican Senator Susan Collins of Maine. In the latest election cycle the Chamber gave $152,000 to Democrats, more than it had over the previous 28 years, vs $483,500 to Republicans. It also endorsed 23 embattled House Democrats. Private equity, oil and gas, and real estate companies also tilted toward Democrats more than in past elections. The upside scenario for big business is that it expects that President Biden will be more effective than the Trump administration was in getting the pandemic under control and won't want — or be politically able — to push through big tax increases or other measures inimical to business. Stocks, which are tied to expectations for economic growth and corporate profits, rose on Jan. 6 when it became clear that Democrats won control of the Senate in the Georgia runoff races. In fact, business is likely to pivot back to the GOP quickly if the party “shakes off Trump's influence,” some observers say. Republican energy consultant and former Trump White House adviser Mike McKenna plays down the significance of companies' pledges to pause campaign contributions. “Very few contributions happen in the first few months of an election cycle” and company PACs “are not really that important anyway,” he says. “If business is thirsty for less regulation and a lower corporate tax burden, I think they'll find ways to overcome any shock and awe they felt on Jan. 6,” says Princeton University history professor Julian Zelizer, who's studied the Republican Party. Scott Reed, a GOP strategist who used to work for the Chamber thinks that once Trump moves on, the Republican leaders have a chance to do a “real reset and to recreate a new paradigm of the Republican Party being about growth and opportunity.” That, anyway, is what big business leaders are hoping for. So, we will see. The very early policy tea leaf readings tend to be hazy indicators of real policy shifts—as well as looming key battles. There seems to be real interest for policy shifts, however, including some leading to controversies producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday January 15, 2021 |
OMB Reviewing USDA Notice on Using RFID Tags For Cattle, Bison The Office of Management and Budget (OMB) has received a notice from USDA's Animal and Plant Health Inspection Service (APHIS) on the use of radio frequency identification (RFID) tags as “official identification in cattle and bison.” In July 2020, APHIS published a notice seeking comment on moving to using RFID tags as the sole official eartags used in interstate movement of cattle and bison. Comments were due by Oct. 5, 2020. The agency proposed that starting Jan. 1, 2022, they would no longer approve venders to use the official USDA shield in producing metal eartags or other eartags that do not have RFID components. They also suggested that starting Jan. 1, 2023, RFID tags would be the only identification devises for cattle and bison, but indicate cattle and bison with metal tags in place before that date would be grandfathered in. Presumably the notice under review would finalize APHIS' plans on this topic.
| Rural Advocate News | Friday January 15, 2021 |
US Customs Issues Region-Wide Ban On Cotton, Tomato Products From Xinjiang U.S. Customs and Border Protection (CBP) Wednesday announced their Withhold Release Order (WRO) now applies to cotton products and tomato products produced in China's Xinjiang Uyghur Autonomous Region “based on information that reasonably indicates the use of detainee or prison labor and situations of forced labor.” CBP said the actions it is basing the order on include “debt bondage, restriction of movement, isolation, intimidation and threats, withholding of wages, and abusive living and working conditions.” CBP personnel at all U.S. ports of entry will detain cotton products and tomato products “grown or produced by entities operating in Xinjiang. The cotton products include apparel and textiles and “other goods made with cotton and tomatoes.” CBP said importers are responsible for making sure products they import “do not exploit forced labor at any point in their supply chain, including the production or harvesting of the raw material.” This is the second WRO that CBP has issued on products from Xinjiang issued in Fiscal Year (FY) 2021.
| Rural Advocate News | Friday January 15, 2021 |
Friday Watch List Markets A report on December U.S. retail sales is due out at 7:30 a.m. CST Friday, followed by December industrial production from the Federal Reserve at 8:15 a.m. The University of Michigan's consumer sentiment index will be out at 9 a.m. CST. After a big week of USDA reports and more export sales, traders will continue to watch for more export news and stay close to the latest weather forecasts. Weather Cold, snow and strong winds are in store for the western and northern Midwest Friday, including blizzard conditions. Meanwhile, strong winds will batter wheat areas of the Plains. The only other area of precipitation will be light rain in portions of the eastern Midwest.
| Rural Advocate News | Thursday January 14, 2021 |
Lawmakers Ask Trump Administration to Deny Biofuel Waivers A group of lawmakers is asking the outgoing Trump administration to deny biofuel wavers. A letter signed by the House Biofuels Caucus follows a report the Environmental Protection Agency was readying to approve three small refinery exemptions. The letter calls the exemptions illegal, adding they are “contrary to legislative intent and hurt rural economies.” In September, EPA Administrator Andrew Wheeler rejected dozens of waiver requests from refiners. But now, with 66 more exemption requests pending, and news the Trump administration is preparing to approve three waivers, the lawmakers say the reversal is “a betrayal to Rural America.” The lawmakers say it would be inappropriate to grant any waiver petitions inconsistent with the law and the Tenth Circuit Court decision, currently pending litigation and review by the Supreme Court until the review is finished. The approvals would be one of the Trump administration's final efforts and could be announced yet this week, applying to the 2019 compliance year. ************************************************************************************ Meat Worker COVID-19 Cases Five Times Lower than June A new analysis of independent data for 2020 shows that new COVID-19 infection rates amongst meat and poultry workers were five times lower in December than in May. Meanwhile, rates in the general population rocketed up nine times in the same period. According to data from the Food and Environment Reporting Network, the meat and poultry sector was reported to have an average of 19.91 new reported cases per 100,000 workers per day in December. That compares to an average of 98.39 new reported cases per 100,000 workers per day in May. The New York Times reports that during the same period, the average new case rate for the U.S. population rose from 7.11 cases per 100,000 people per day in May to 63.01 cases in December. Meat Institute President and CEO Julie Anna Potts says, “This new data further demonstrates that the more than $1.5 billion spent on comprehensive protections implemented since the spring reversed the pandemic's trajectory.” ************************************************************************************ Masters of Beef Advocacy Program Launches Updated Training The Masters of Beef Advocacy program Wednesday updated advocacy training modules – called MBA NextGen. The updates to the popular training modules make it easier for a new generation of farmers and ranchers to share their story and advocate knowledgeably for the beef industry. Updated information and resources to help answer consumer questions are all accessible within the program. MBA NextGen continues to be a free, self-guided online course that provides farmers, ranchers, service providers, students, consumers, and all members of the beef community the tools and resources to become a beef advocate and answer tough questions about beef and raising cattle. A National Cattlemen’s Beef Association spokesperson says the program “is one of the most effective tools we have to teach a wide audience the core principles of the cattle industry.” The program started in 2009, and to-date, there are more than 15,000 graduates. To enroll or find out more about the latest Masters of Beef Advocacy Program, visit BeefItsWhatsForDinner.com. ************************************************************************************ Boehringer Ingelheim Animal Health Announces U.S. Leadership Transition Boehringer Ingelheim Animal Health Wednesday announced the appointment of Randolph Legg as its U.S. President. He succeeds Everett Hoekstra, who retired in December. Legg will remain head of the Company's U.S. commercial business while serving as president. Legg held various commercial leadership roles in Boehringer Ingelheim's Human Pharmaceutical division before moving to its Animal Health business in 2019 to lead the U.S. Pets Commercial team. He is based at the U.S. headquarters of Boehringer Ingelheim Animal Health in Duluth, Georgia. Hoekstra retired after holding a variety of leadership roles at Boehringer Ingelheim. As president of Boehringer Ingelheim Animal Health in the U.S. for the last two years, he oversaw the final integration activities after Boehringer Ingelheim acquired Merial in 2017 to become the world's second-largest animal health company. Boehringer Ingelheim Animal Health also is transitioning a key global manufacturing role from its global headquarters in Ingelheim, Germany, to the United States. ************************************************************************************ U.S. Soy Turf to Cover More Ground Than Ever in 2021 The Indiana Soybean Alliance, with support from the United Soybean Board and SYNLawn Indiana, is kicking off a new partnership with the Indianapolis Colts. The partnership features soy-backed SYNLawn artificial grass to be used during 2021 pre-game and traveling educational exercise programs, which will be held once COVID-19 limitations end. The partnership helps further the educational efforts on the many benefits offered by U.S.-grown soybeans, as well as the soy checkoff’s positive impact on building new markets for the industry, according to USB. Participating children and adults will have the opportunity to learn about soy while enjoying the Colts’ popular “Touchdown Town” 40-yard dash across SYNLawn. Use of soybean oil and other plant-based renewable materials qualifies multiple SYNLawn products for the U.S. Department of Agriculture’s Certified Biobased Product label. According to a report USDA released in July 2019, biobased products contributed $459 billion to the U.S. economy in 2016. Additionally, SYNLawn's soy-backed grass is recyclable and conserves water. ************************************************************************************ European Crop Protection Association Renamed CropLife Europe The European Crop Protection Association announced this week it will now operate as CropLife Europe. The rebranding also changes the association mandate to include digital and precision farming, plant biotech innovation and biopesticides alongside conventional pesticides. The launch of CropLife Europe comes as EU policymakers and governments are increasingly calling on the agriculture and the food system to transition to a more sustainable model. A CropLife Europe spokesperson says, "an agile association representing a host of technologies under one roof will be better equipped to represent the integrated solutions needed to deliver sustainable agriculture." Another representative says the European Commission’s Green Deal is "a real game-changer," adding it provides "a great opportunity to deliver more sustainable agriculture." The expanded organization will encompass a wider range of topics, including pesticides, conservation efforts, and precision agriculture. Finally, the organization will focus on plant biotech traits that enable crops to thrive in difficult conditions using less resources or provide greater benefit in diets.
| Rural Advocate News | Thursday January 14, 2021 |
Washington Insider: What President Trump Got Right About the Economy The New York Times is reporting this week that President Trump sent “plenty of mixed signals on Fed policy, but that didn't make him wrong about interest rates.” The article lauds the president's willingness to ignore economic orthodoxy and says several recent policies have “been vindicated.” It has become clear, the article says, that the U.S. economy can surpass what technocrats once thought were its limits: specifically, the jobless rate can fall lower and government budget deficits can run higher than was once widely believed, without setting off an inflationary spiral. As a result, the experience of the Trump presidency — particularly the buoyant economy before the pandemic began — shows what is possible, NYT says. And, if Trump was able to ignore economic orthodoxy and achieve the best economic outcomes in years, it's worth asking how much value that orthodoxy held to begin with. The article examines instances when the centrist conventional economic wisdom was employed and some where it wasn't. It asserts that “intellectual consensus lurked beneath many decisions based on the belief that it was essential “to check the pace of employment growth to reduce the risk of overheating.” Yet from spring of 2018 to the onset of the pandemic, the U.S. experienced a jobless rate of 4% or lower, with no obvious sign of inflation and many signs that less advantaged workers were able to find work. Reality turned out better than the 2015 officials thought possible. Since the 1980s, recessions have been rarer than they were in the immediate post-World War II era, but were followed by long, “jobless” recoveries that often “featured weak growth in workers' wages.” It turns out that when you try to choke off the economy whenever it is starting to get hot, American workers suffer, the Times says. Economists have referred to the period from the early 1980s through the 2008 financial crisis as “the great moderation,” because recessions were rare and mild. But with more years of hindsight, that period looks less like a success. “There's nothing particularly moderate or particularly great about the great moderation,” said Larry Summers, the Harvard economist and former Treasury secretary. In effect, the last four years at the Fed have made clear both how much things have changed and how much they needed to. Janet Yellen (now President-elect Biden's Treasury secretary nominee) started the first of a series of interest rate increases in late 2015, and the current chair, Jerome Powell, continued them. But the logic kept breaking down. Inflation kept coming in below the 2% target the central bank aims for, even as the jobless rate kept falling. It's not terribly clear what was necessary about the rate increases, as the president's harangues against Powell expressed vividly. Trump violated decades of precedent under which presidents didn't jawbone the Fed, which seeks to maintain political independence. But that didn't make him wrong about interest rates, the Times asserts. A central question for President-elect Joe Biden will be: to what degree is the Trump-era economic success a result of policies that the next president might embrace, and to what degree was it just luck? And, one view now is that deregulating major industries and lowering taxes on business investment — microeconomic strategies — are especially crucial to the economy's success. The Biden administration and Democratic Congress may view more aggressive regulation as a core goal, aimed at preventing corporate misbehavior, protecting the environment, and more. For some, the macroeconomic lessons of the Trump years — those having to do with things like deficits, inflation and interest rates — won't be enough to recreate the 2019 economy. In this view, the microeconomic details of how the president governed will be crucial. However, the experts who will shape economic policy in the new administration seem eager to push for a post-pandemic economic surge reflecting the (macroeconomic) lessons of the last four years, the Times says. Yellen was trained as a labor economist and once argued that “if inflation were to remain persistently lower, a more radical rethinking of the economy's productive potential would surely be in order.” That radical rethinking now appears very much underway — including by Yellen, the Times says. She has argued that a high-pressure economy where unemployment is low and employers have to compete for workers improves upward mobility. “It is hard to overstate the benefits of sustaining a strong labor market,” Fed chair Powell said recently and the central bank's new policy language “reflects our view that a robust job market can be sustained without causing an outbreak of inflation.” In early 2017 when President Trump took office the CBO projected that by 2020 the government would need to pay at a 3.2% rate to borrow money for a decade. The actual rate is now just over 1%, even after a surge over the past week. While that reflects the pandemic-induced downturn, even at the start of 2020 the rate was 2%. The CBO's most recent forecast is that it will remain below 3% through 2029. So, we will see. These are unusual times, and examining the recent past for clues to what to expect in the future seems prudent. Producers should watch closely as the new administration's policy trends are implemented, Washington Insider believes.
| Rural Advocate News | Thursday January 14, 2021 |
OMB Finishes Review On Final Rule Covering Hemp Production The Office of Management and Budget (OMB) has completed its review of USDA's final rule to establish a domestic hemp production program as directed in the 2018 Farm Bill. The delay in getting the rule finalized has resulted in Congress stepping in to allow those states operating under 2014 Farm Bill pilot program rules on hemp production to continue to do so through September 30. The final rule is to be published in February, according to the action regulatory agenda released by the Trump administration in December. It's not clear if the incoming Biden administration will seek to alter the rule before releasing it.
| Rural Advocate News | Thursday January 14, 2021 |
Farm Bureau Economist: CFAP 3 Payouts May Not Come Until End Of This Quarter, Early In Second Quarter Payments to farmers under what is expected to be the Coronavirus Food Assistance Program 3 (CFAP 3) are looked to arrive late in the first quarter of this year or early in the second quarter, according to American Farm Bureau Federation Chief Economist John Newton. “In conversations that we've had with current USDA staff, I think there is some IT infrastructure that needs to be developed, the paperwork needs to get developed, FSA staff may need to be trained, so I'd say stay tuned on that,” Newton said during the group's annual meeting. The aid producers have received since 2018 via trade mitigation (Market Facilitation Program/MFP) and CFAP shows, according to Farm Bureau economists, Iowa has received the largest amount at $4.6 billion, followed by Illinois ($3.8 billion), Minnesota ($3.1 billion), Nebraska ($3 billion), Kansas ($2.6 billion) and Texas ($2.5 billion). California has received about $1.9 billion.
| Rural Advocate News | Thursday January 14, 2021 |
Thursday Watch List Markets USDA's weekly report of export sales, weekly U.S. jobless claims and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CST, Thursday. The U.S. Energy Department will report on natural gas inventory at 9:30 a.m. Traders will continue to keep an eye on the latest weather forecasts and any trade news that might emerge. January contracts of soybeans and soy products are set to expire early Thursday. Weather Rain, snow and strong winds are in store for portions of the Northern Plains and northern through western Midwest Thursday. These conditions will combine with a colder temperature trend to bring on a blizzard threat later Thursday into Friday. High winds and dry conditions will also cover the Southern Plains; unfavorable for winter wheat.
| Rural Advocate News | Wednesday January 13, 2021 |
USDA WASDE Report Sends Grain Markets Higher The Latest World Agriculture Supply and Demand report sent grain markets higher Tuesday. The Department of Agriculture monthly corn outlook called for lower production, reduced corn used for ethanol, smaller feed and residual use and exports, and decreased ending stocks. Corn production is estimated at 14.1 billion bushels, down 324 million on a lower yield and slight reduction in harvested area. USDA raised the season-average corn price to $4.20 per bushel. Soybean production is estimated at 4.1 billion bushels, down 35 million. Harvested area is estimated at 82.3 million acres, up slightly from the previous report. Yield is estimated at 50.2 bushels per acre, down 0.5 bushels. With higher imports and slightly higher beginning stocks, soybean supplies are down 14 million bushels from last month. The U.S. season-average soybean price for 2020/21 is projected at $11.15 per bushel, up 60 cents as cash prices in Central Illinois reach six-year highs. Meanwhile, the outlook for U.S. wheat this month is for stable supplies, higher domestic use, unchanged exports, and lower ending stocks. ************************************************************************************ USDA Releases Agriculture Innovation Research Strategy Summary and Dashboard The Department of Agriculture Tuesday released its U.S. Agriculture Innovation Strategy Directional Vision for Research summary and dashboard. The summary, USDA says, will help to guide future research decisions within the department. The strategy synthesizes the information USDA collected as part of a public announcement earlier this year engaging the public on research priorities under the Agriculture Innovation Agenda. The report summarizes the stakeholder input and defines discovery goals to help inform research to best address the Agriculture Innovation Agenda for the next ten to 30 years. USDA deputy undersecretary Scott Hutchins says the information will “spark imagination to convey the positive role innovation will play to help solve challenges that face our nation.” The Agriculture Innovation Agenda is a Department-wide effort to align USDA’s resources, programs, and research to provide farmers with the tools they need. The next steps include aligning existing USDA research programs against these goals, while linking existing research activities to the objectives to inform the broader innovation community of progress and enlist their engagement. ************************************************************************************ Growth Energy Supports Senate Letter to President-Elect Biden on Biofuels Priorities Tuesday, Senator Tammy Duckworth led a coalition of senators in sending a letter to President-elect Joe Biden requesting strong support of farmers and the biofuels industry. The Illinois Democrat and her colleagues called on the Biden Administration to direct the Environmental Protection Agency to reject pending Small Refinery Exemptions by applying the 10th Circuit Court's decision nationwide. The lawmakers also call for the administration to quickly publish the Renewable Volume Obligations. Growth Energy supports the action, as CEO Emily Skor says, "this letter outlines the actions the Biden Administration needs to take to fulfill its campaign promises to rural America." The letter comes as Reuters reports the Trump administration is considering last-minute action to approve three small refinery waivers. The approvals would be one of the Trump administration's final efforts and could be announced yet this week. If granted, the waivers would apply to some exemptions for the 2019 compliance year. ************************************************************************************ Stabenow Leads Advocates in Urging USDA to Prioritize Protections for Food Workers Senator Debbie Stabenow, the incoming Senate Agriculture Committee chair, this week urged the Department of Agriculture to implement the bipartisan worker protection provisions in the COVID-19 assistance package. The Michigan Democrat says, "In order to repair our food supply and feed families in need, USDA must prioritize safety in addition to food purchases." In the recently passed COVID-19 assistance package, Congress provided no less than $1.5 billion to fund food purchases for distribution to those in need, provide worker protection measures, and retooling support for farmers, farmers markets, and food processors. The provision was inspired by Stabenow's bipartisan Food Supply Protection Act to help protect the food supply after the COVID-19 crisis put an unprecedented strain on farmers, workers and food banks. USDA recently announced funding for food purchases through the Farmers to Families Food Box program, but has yet to commit additional funds to protect workers and ensure the continuity of the food supply chain. ************************************************************************************ Interior Department Proposal Seeks Greater Broadband Access, Reduced Wildfire Hazards The Department of Interior this week announced three new actions to aggressively increase broadband internet access in rural communities and reduce wildfire risks. The Bureau of Land Management issued a proposed rule that would make it easier for industry to co-locate infrastructure, manage trees to enhance electric reliability and avoid fire hazards. The proposal also seeks to update the Bureau’s cost recovery fee schedule for right-of-way activities. The proposed regulatory amendments complement ongoing efforts to reduce the vulnerability of public lands to wildfires and make it easier for firefighters to access and contain wildfires. A U.S. Fish and Wildlife Service proposed rule will streamline its regulations for permitting of rights-of-way. And, the National Park Service has amended Telecommunication Sites of Management Policies to allow the Service to accept applications for communications sites from additional applicants. Publication in the Federal Register will open a 60-day comment period for each rule, and the respective notice will include information on how to comment. ************************************************************************************ Farm Tractor Sales Finish 2020 Higher Farm tractor and combine sales finish the year with solid growth across the U.S., while sales in most sectors in Canada were also positive. The Association of Equipment Manufacturers reports U.S. total farm tractor sales rose 26.8 percent in December compared to 2019 while U.S. combine sales fell 1.9 percent. U.S. four-wheel-drive units fell slightly in December, down 3.7 percent, with year-to-date sales finishing up 3.7 percent. 100+hp posted healthy growth in December, up 21.8 percent, finishing the year up 3.2 percent. Total yea to date farm tractors out the door are up 17.9 percent in 2020, while combines finished 2020 up 5.5 percent. AEM’s Curt Blades says, "despite uncertainty in the overall economy, the ag equipment market has been pretty strong." For Canada, total farm tractor sales were up 10.6 percent for 2020, while combine sales fell 30 percent on the month, and 13.9 percent for the year.
| Rural Advocate News | Wednesday January 13, 2021 |
Washington Insider: More Trade Tensions With China Bloomberg is reporting this week that the Trump administration's final days are proving as confounding as ever for companies and investors stuck in the middle of an increasingly contentious U.S.-China relationship. After a week of widespread confusion over the scope of a U.S. ban on investments in businesses linked to China's military, both Washington and Beijing took steps over the last weekend that threaten to further ratchet up tensions and cloud the outlook for cross-border commerce. Secretary of State Mike Pompeo upended decades of U.S. policy on Saturday by removing self-imposed restrictions on how government officials interact with Taiwan, eliciting swift calls for retaliation by China's state-run media. Pompeo's announcement came just a few hours before Beijing issued new rules that would allow Chinese courts to punish global companies for complying with foreign sanctions. In both cases, it was far from clear how the edicts would be implemented. China, for example, has been expanding its toolkit to fight back against U.S. sanctions for years, though it has so far refrained from using measures including blacklists and export controls. Hanging over everything is how the world's most important geopolitical relationship will evolve after President-elect Joe Biden enters the White House later this month. Any optimism for an easing of tensions should be tempered by bipartisan U.S. support for recent policies levied against China, former U.S. Ambassador to China Terry Branstad said. “I don't see a likelihood of a big change in the policy with the change of administrations,” he said. The upshot is continued uncertainty for companies caught in the crossfire, from Apple Inc. to Tencent Holdings Ltd. and HSBC Holdings Plc. That risks chilling investment decisions, deal-making and startup funding at a time when the coronavirus-pummeled global economy needs all the support it can get. “There is an escalation of tit-for-tat,” said Alex Capri, a research fellow at the Hinrich Foundation, an Asia-based foundation set up by U.S. entrepreneur Merle Hinrich to promote sustainable global trade. In an address to Communist Party officials about China's development plans on Monday, President Xi Jinping said that everyone “must be brave to fight and be good at it,” while striking an optimistic tone that “opportunities outweigh challenges.” Investors in Taiwan largely brushed off rising cross-strait tensions, sending the local stock index to a record high. Pompeo lifted U.S. guidelines on meetings with Taiwanese officials, put in place after Washington's recognition of China in 1979. The Chinese Communist Party-backed Global Times warned that Pompeo was pushing toward military conflict. Hu Xijin, the newspaper's editor-in-chief, added in a microblog post that China has a “precious window of opportunity for mainland China to teach a heavy lesson to the 'Taiwan independence' forces” and re-establish “strategic leverage” in the Taiwan Strait. The Chinese Foreign Ministry, which opposes official U.S.-Taiwan interactions, said Monday that it “firmly opposes and strongly condemns” the U.S. move. Beijing's new rules on foreign sanctions are meant to protect local firms from “unjustified” overseas enforcement actions by allowing Chinese citizens or companies to sue for compensation in Chinese courts if their interests are damaged by the application of foreign laws. The new rules are more than anything a signaling mechanism to both Chinese companies and U.S. companies in China, and are more of a signal at this stage rather than actually trying to put legal efforts in motion, Bloomberg said. Even though Hong Kong's security law forbids sanctions against the financial hub and China, state-owned lenders including Bank of China Ltd. have quietly taken steps to comply with U.S. sanctions against officials such as Hong Kong Chief Executive Carrie Lam. With more than $1 trillion of liabilities denominated in U.S. dollars, China's four largest state-owned banks have huge incentives to stay on the good side of American regulators so they can retain access to dollar funding. Investors have in many cases been given little warning on how regulators, banks, index providers and exchanges plan to implement Trump's order. The New York Stock Exchange flip-flopped twice before finally confirming last week it will delist China Mobile Ltd. and two other Chinese telecom companies. MSCI Inc. removed the three stocks from its indexes on Friday, giving global funds just one day to adjust billions of dollars of passive investments. Wendy Liu, head of China equity strategy at UBS Group AG, said some investors in Europe are interested in taking advantage of the sanction-induced drop in Chinese share prices. But she added that many are still waiting to pull the trigger as they await more clarity on the outlook for U.S.-China tensions. “Reversing Trump's sanctions and China policies too quickly will give a 'pro-China' signal that will not be beneficial for Biden's polls,” Liu said. “We still need to wait and see how U.S.-China relations will unfold in the new administration.” So, we will see. The current U.S. transition period seems increasingly likely to be steeped in confusion as new positions are constructed with major trading partners — trends producers should watch closely as the transition approaches its completion, Washington Insider believes.
| Rural Advocate News | Wednesday January 13, 2021 |
Reports Signal Trump Administration to Grant Some RFS Waivers The Trump administration is poised to issue additional small refinery exemptions (SREs) relative to the Renewable Fuel Standard (RFS), according to reports from Reuters and Politico, with both indicating the decisions could come yet this week for requests made by refiners for the 2019 compliance year. EPA data shows 32 SRE requests are pending for the 2019 compliance year and another 14 for the 2020 compliance year. Politico reported that refineries in Oklahoma, Kansas, New Mexico, Colorado, Wyoming and Utah would not likely receive SREs after the January 2020 10th Circuit Court of Appeals decision invalidating three SREs on the basis that such waivers had to be received annually since 2011. The Supreme Court said Friday it would review the 10th Circuit Court decision. Politico reported that EPA could issue partial waivers for the 2019 compliance year. The reports come after some speculated the pending Supreme Court review could put any action on hold.
| Rural Advocate News | Wednesday January 13, 2021 |
CFAP 2 Payments Edge Higher In Most Recent Week Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) moved up to $13.14 billion as of Jan. 10, with approved applications now totaling 889,001. The payments nudged above $13 billion in the prior week. Payouts by category did not change greatly, with acreage-based payments at $6.19 billion, accounting for 47.1% of CFAP 2 payments with 586,264 approved applications. Another $3.41 billion has been made for livestock, 26% of total CFAP 2 payments on 435,757 approved applications. USDA has paid $2.3 billion for sales commodities, 17.5% of all payments, on 64,143 approved applications. Another $1.19 billion has been paid for dairy, 9% of all payments, on 23,444 approved applications. USDA payments for eggs/broilers under CFAP 2 total $55.5 million, 0.4% of all payments, on 32,798 approved applications
| Rural Advocate News | Wednesday January 13, 2021 |
Wednesday Watch List Markets At 7:30 a.m. CST, the U.S. Labor Department will release its report of December consumer prices, followed by the Energy Department's weekly inventory report at 9:30 a.m. The Federal Reserve's Beige Book will be out at 1 p.m. CST, along with the Treasury Department's federal budget report for December. Traders remain interested in the latest weather forecasts and any export news. Weather Wednesday brings another round of dry conditions to all central U.S. crop areas. Isolated mixed precipitation in the northern Midwest will dissipate during the morning. Moisture will focus in the Northwest with rain and snow. Temperatures continue above normal north and central with below-normal values Southeast.
| Rural Advocate News | Tuesday January 12, 2021 |
AFBF President: Turn the Page on Partisanship A top farm organization leader says it is time to "turn the page" on partisan politics. Farm Bureau President Zippy Duvall made the comments during an opening press conference as part of the American Farm Bureau Federation Virtual Annual Convention. Duvall's remarks follow last week's rally and attack on the U.S. capitol. Duvall says, “we have got to work together, as one country, one people, for the good of all the people in this country.” Farm Bureau members will develop policy priorities this week for the organization to follow in 2021. With the incoming Biden administration, top priorities are expected to be climate change, taxes and labor, along with strengthening the farm bill. Duvall says, “We must make sure that we are at the table for the discussions around addressing climate change,” adding, “I believe agriculture’s great track record shows just how much we can achieve when farmers and ranchers are at the table when we develop solutions.” ************************************************************************************ USMEF Releases November Export Data U.S. beef exports posted one of the best months on record in November, according to the U.S. Meat Export Federation. November was also a strong month for pork exports, which already surpassed the full-year volume and value records set in 2019. November beef exports totaled 115,300 metric tons, up six percent from a year ago and the largest since July 2019. Export value climbed eight percent year-over-year to $707.5 million. November beef muscle cut exports were the third largest on record at 91,300 metric tons, valued at $630 million. November pork export volume was steady year-over-year at 258,800 metric tons, with value down two percent to $697.5 million. Although China/Hong Kong remained the largest destination for U.S. pork in November, momentum continued to build in other markets, including Japan, Mexico and Central America. January-November pork exports set new annual records for both volume and value. Pork muscle cut exports also shattered previous annual records, increasing 18 percent year-over-year to 2.29 million metric tons, valued at $6 billion. ************************************************************************************ Supreme Court to Review Biofuel Blending Case The U.S. Supreme Court last week announced it will review the U.S. Court of Appeals for the Tenth Circuit’s decision in a case against the Environmental Protection Agency. The decision overturned three inappropriately granted small refinery exemptions under the Renewable Fuel Standard. Plaintiffs in the case include the Renewable Fuels Association, National Corn Growers Association, National Farmers Union and American Coalition for Ethanol. In a joint statement, the organization says, "Our groups believe the Tenth Circuit got it right the first time, and we will continue to defend the court's ruling." In January of last year, the Tenth Circuit court struck down the exemptions by the Environmental Protection Agency. Last month, the U.S. Department of Justice filed a recommendation against a Supreme Court review. The Justice Department says in its brief that, “The issue didn’t warrant the high court’s review and stated that the refiners’ petition asking for a review ‘should be denied.” ************************************************************************************ USDA Announces Details of the 2021 Agricultural Outlook Forum Program The Department of Agriculture Monday announced details of the 97th annual Agricultural Outlook Forum, which will be held virtually on February 18-19, 2021. The 2021 Forum, themed "Building on Innovation: A Pathway to Resilience," will focus on the central role science and innovation have played in helping agriculture overcome challenges and build resilience during the COVID-19 pandemic. The Forum's program will begin with a presentation by USDA's new Chief Economist, Dr. Seth Meyer, on the Department's outlook for U.S. commodity markets and trade for 2021 and U.S. farm income. A keynote address by the incoming Agriculture Secretary, presentations by Congressional leaders, and a session on genetic literacy are also scheduled on the first day of the Forum. The program will also cover five key areas, including supply chain resilience, food price and farm income outlooks, trade, managing risks, and finally, innovation. The 2021 Forum is expected to bring together more than 3,000 participants. The Forum's program includes more than 30 sessions and 100 expert speakers. ************************************************************************************ USITC Launches Cucumber and Squash Imports Investigation The U.S. International Trade Commission seeks input for two new investigations on the effects of imported cucumbers and squashes on the U.S. seasonal cucumber and squash markets. U.S. Trade Representative Robert Lighthizer requested the investigations in a letter to the USITC on December 7, 2020. As requested, the USITC will examine the effect of imports on the domestic seasonal markets of cucumbers and squash in separate but concurrent investigations and produce two separate reports. The investigation will detail the effects of imports on the domestic seasonal markets, focusing on production and the competitiveness of cucumbers and squash grown in the Southeastern United States. The investigation will track monthly price trends and compare prices of domestically produced cucumbers and squash along with imported products. The USITC will hold a public hearing in connection with the investigations in April, and expects to complete the investigations no later than December 7, 2021. ************************************************************************************ Farm Equipment Manufacturing trends to Watch in 2021 Both the immediate and long-term future of the manufacturing industry will be defined by the development of several evolving and prominent trends. The Association of Equipment Manufacturers says these trends are poised to have a significant impact in 2021. The organization has identified five key trends, including COVID-19 and enhancing employee safety. Other trends are a more connected workforce through technology, expanding the Internet of Things, localized production and predictive maintenance. The Internet of Things has long been a trend to watch in manufacturing. According to a recent study conducted by the MPI Group, approximately 31 percent of manufacturing production processes now incorporate smart devices and embedded intelligence. Furthermore, more than one-third of manufacturers have established plans to implement IoT technology into their processes, while 32 percent plan to embed the technology into their products. The technology offers both remote monitoring and predictive maintenance capabilities, making it even more valuable for organizations looking to maintain visibility of equipment performance from afar.
| Rural Advocate News | Tuesday January 12, 2021 |
Washington Insider: Weird Loans Under PPP The New York Times highlighted a strange aspect of the Paycheck Protection Program this week. Many of the loans provided were really tiny because of the way rules were written. Still, the program was called a lifeline for many small businesses as it distributed $523 billion in forgivable loans that averaged just over $100,000 to more than five million companies, the Times said. It noted that there also were roughly 300 business that received loans of $99 or less, surprisingly small the article says. For example, Stephanie Ackerman, a self-employed college admissions consultant, was shocked when her loan deposit, for $13, showed up. “That's supposed to help my business? It was a joke,” she said. The tiny sums were equally frustrating for the banks and other lenders. For each, they were paid 5 percent of the value — meaning the lenders collected just pennies on the smallest loans, far less than they cost to make. Ackerman's loan netted her lender, Bank of America, a fee of 65 cents, paid by the government. The Times said that the profusion of minuscule loans is an illustration of how some of the program's hastily constructed rules sometimes led to absurd outcomes. And, it thinks that “they could be repeated: in last month's stimulus package, Congress allocated $284 billion to restart the loan program for to the hardest-hit businesses.” Lending began this week. Congress created the PPP in late March to help small businesses retain their employees. Sole and self-employed entrepreneurs were an afterthought and weren't eligible for loans in the program's first week. When it did expand to include them, the government created an alternate set of rules that blocked them from receiving loans unless their business was profitable — a restriction that did not apply to larger companies that were eligible as long as they had salaried employees. Small businesses were eligible to borrow 2.5 times their average monthly payroll, up to $10 million, to cover their workers' wages and some other expenses. So long as most of the money was spent paying workers, the loan could be fully forgiven, giving recipients a rare infusion of free money to help them endure disruptions as the pandemic wore on. For companies without salaried employees, the SBA which ran the PPP, told lenders to look at the profit the business owner reported on their 2019 taxes — even though payroll and profit are totally separate measures of a company's business activity. The loan that went to Amy Jeanchaiyaphum, a photographer in Minnetonka, Minn., illustrates the pitfalls of that approach, NYT says. Like most sole proprietors, she doesn't pay herself a fixed salary. Her income first goes to expenses and she lives on the remainder. In 2019, her gross sales added up to a modest five-figure sum. But, her “profit” after taking legal deductions was only $458. Following SBA rules, her lender, Wells Fargo, treated that as her annual salary and issued her a loan for the maximum amount for which she qualified: $95 — for that, the bank collected a $4.75 fee. She reached out to the local SBA office, where an official told her the loan couldn't be increased. Frustrated and defeated, she accepted the tiny loan. Lenders and accountants have spent months poring over the program's complicated and frequently revised rules and noted that the relief effort was focused on minimizing job losses not preserving struggling businesses. “What's payroll for a solo entrepreneur?” said Sean Mullaney, a financial planner in California who worked with several clients on their loans. This was created in almost a fog of war, and there's lots of scattershot things in it, he said. Sole proprietorships are the most common business structure in America, accounting for around 26 million businesses. Many are sidelines — workers who pick up an occasional freelance project or collect royalties they report on their taxes as business income—and many rely on their business income as their primary source of support. Yet, because of the SBA edict that sole proprietors had to be profitable to get a PPP loan, many didn't qualify. Nicole Davis, an accountant in Georgia who specializes in small businesses, estimates that about 60 of her sole-proprietor clients were locked out of the relief program because their companies are not profitable. “They were surprised; they thought they were eligible, and it was hard to explain why they didn't qualify,” Davis said. NYT called the rule barring unprofitable sole proprietorships a significant obstacle for lenders that work in vulnerable communities. “It's barbers, stylists, drivers, janitorial — really small mom-and-pop businesses. If they had a negative number on their Schedule C, they just weren't eligible for anything,” said José Martinez, the president of Prestamos CDFI. Some big banks chose not to work with businesses that qualified for so little. JPMorgan Chase, the program's largest lender, set a $1,000 minimum on its loans but two other national lenders, Bank of America and Wells Fargo, did not, so each made scores of loans to sole proprietors for sums as low as $1. Ackerman, the college consultant, kept her $13 loan, and plans to file the paperwork to have it forgiven. Others rejected such scant aid. “I was so flabbergasted, I sent it right back,” said Jeff Ostashen, a self-employed trucker in Lakeland, Fla., who got a $17 loan from Wells Fargo. “It felt like a slap in the face.” Still, Ostashen — whose sales have been slow since the pandemic began — plans to apply for a second loan. “I'm going to try again and see what happens, and hope and pray for the best,” he said. So, we will see. Certainly, small sole-proprietor businesses are important to the U.S. economy, and to agricultural producers—who should watch closely as this and similar programs are mobilized to assist the still lagging economy, Washington Insider believes.
| Rural Advocate News | Tuesday January 12, 2021 |
Supreme Court To Review 10th Circuit Ruling On SREs The U.S. Supreme Court Friday said it would review the ability of small oil refineries to win exemptions from Renewable Fuel Standard (RFS) requirements, agreeing to hear an appeal by units of HollyFrontier Corporation and Wynnewood Refining Company relative to the 10th Circuit Court of Appeals ruling that invalidated three small refinery exemptions (SREs) for the 2016 compliance year as they were not a continuation of prior SREs. The court will examine whether the EPA exceeded its authority when it exempted three small oil refineries from obligations under the statute. EPA cited the 10th Circuit decision in rejecting scores of gap-year SREs in the fall of 2019, but it has not made any decision on additional gap-year requests for the 2011-2018 compliance years nor has it decided on ones submitted for the 2019 and 2020 compliance years. However, Reuters reported Monday afternoon that sources told them the Trump administration was expected to grant “some” waivers out of the 32 that are pending under the RFS for the 2019 compliance year.
| Rural Advocate News | Tuesday January 12, 2021 |
Lighthizer Urges Biden Administration Stay The Course On China Tariffs Outgoing U.S. Trade Representative (USTR) Robert Lighthizer is urging the Biden administration to keep tariffs on China as they get results, according to comments he made in an interview with the Wall Street Journal. “We changed the way people think about China,” Lighthizer told the WSJ. “We want a China policy that thinks about the geopolitical competition between the United States and an adversary — an economic adversary.” Lighthizer said the Biden plan to bring other countries into the battle with China was a concern, saying it could let other nations slow or veto U.S. actions and tie up the U.S. in endless, pointless discussions with China. The U.S. and China “started dialogues in the '90s,” he noted. “That did nothing. All of them were just a waste of time.” He still wants the Biden administration to keep tariffs on all $370 billion in Chinese goods — three-quarters of everything China sells to the U.S. The 25% tariffs he slapped on Chinese car imports stopped China from potentially selling millions of vehicles in the U.S., he said. Commenting on his replacement to head USTR, Katherine Tai, Lighthizer said she helped garner Democratic support for the U.S.-Mexico-Canada Agreement (USMCA). “She learned good skills on the Hill,” Lighthizer said. Those include “how to manage different people who have different objectives and still get things done.” His stance of keeping a push on China is not surprising and has echoed comments since the election.
| Rural Advocate News | Tuesday January 12, 2021 |
Tuesday Watch List Markets At 11 a.m. CST, USDA will simultaneously release its WASDE, Crop Production, Grain Stocks and Winter Wheat Seedings reports. Traders will also pay attention to the latest weather forecasts and any export news that develops. Weather Dry conditions are in store for almost all primary crop areas Tuesday. The exception is the Northwest, where rain and snow are in effect. Temperatures continue above normal for the season north and central and below normal south.
| Rural Advocate News | Monday January 11, 2021 |
Biofuels Coalition Rejects EPA Excuses Regarding 2017 Order A coalition of the nation’s largest biofuels and agricultural trade groups filed a reply supporting its motion in the U.S. Court of Appeals in Washington, D.C. The motion was filed on November 23, 2020, and asks the court to enforce its 2017 decision requiring the Environmental Protection Agency to address its improper waiver of 500 million gallons of biofuel demand in the 2016 renewable volume obligation (RVO). The coalition includes Growth Energy, Renewable Fuels Association, National Biodiesel Board, American Coalition for Ethanol, and many more. “The EPA should not be allowed to hide behind claims that restoring 500 million improperly-waived gallons is an administrative burden that would inconvenience oil industry interests,” the groups said in their motion. “What’s at stake is the proper implementation of the RFS and the rural communities that rely on its success for their livelihood.” The groups point out that they’ve made it clear that the EPA has the ability and the authority to do the right thing and remedy those lost gallons immediately and on a definite schedule. “The EPA’s delay and disregard for the court’s directive for more than three years is inexcusable,” they added. ********************************************************************************************** Wheat Export Pace Remains Strong Seven months into the 2020-2021 marketing year, USDA forecasts total wheat exports will reach 26.8 million metric tons which, if realized, would be two percent higher than the previous year. U.S. Wheat Dot Org says that number would also be seven percent higher than the five-year average. As of December 24, U.S wheat commercial sales were nine percent ahead of last year’s pace at 20.6 million metric tons, led by hard red winter wheat, hard red spring wheat, and white wheat (soft and hard). Total hard red winter wheat sales of 7.1 million metric tons are three percent ahead of last year and seven percent above the five-year average. Significantly increased exports to Nigeria and China offset reduced sales to Mexico, typically the largest market for hard red winter wheat. Total hard red spring wheat sales of 5.78 MMT are nine percent ahead of last year and four percent ahead of the five-year average. HRS sales to the Philippines and Japan are up five and six percent, respectively. Total white wheat sales, represented mainly by soft white wheat, are 47 percent ahead of the previous year’s pace at 5.52 MMT and 49 percent of the five-year average. *********************************************************************************************** Ag Land Sales Prices Surge Higher Farmers National Company says what started with better-than-expected sales prices at land auctions before last fall’s harvest extended into continued higher prices in October and November. “Farmers National Company had auction sales in several states during this time where land sold near levels last seen in 2012,” says Randy Dickhut, senior vice president of real estate operations. “In specific instances, prices for good quality cropland in the heart of the Midwest are up hundreds to thousands of dollars per acre more than anticipated.” Ag land prices have been fairly stable in recent years despite the up-and-down agricultural economy. The demand for land is the driver of the current land price surge. “Values for good cropland are strong right now, with more farmers stepping up to buy as well as a growing number of individual investors,” Dickhut says. “Buying interest from farmers has increased as they anticipate a better income year in 2020 than once thought.” Demand for all types of land has also seen an increase. As a result of COVID-19, a growing number of individuals have become interested in land as an investment. The overall supply of good cropland for sale is on the low side and is similar to the past few years. ************************************************************************************ Preliminary E.U.-MERCOSUR Trade Agreement Not Good News for the U.S. On June 28, 2019, the European Union because the first major partner to strike a trade deal with the Southern Common Market countries known as MERCOSUR (MEHR-coh-soor). They include Argentina, Brazil, Paraguay, and Uruguay. Although the agreement isn’t complete yet, the preliminary analysis by the USDA says U.S. agricultural products that compete with MERCOSUR and E.U. products will be at a significant disadvantage. The agreement eliminates 93 percent of the tariffs on MERCOSUR exports to the EU while offering preferential treatment to the other seven percent. Although a final tariff schedule hasn’t been released, preliminary analysis shows that U.S. agricultural products will be at a significant disadvantage in both markets. U.S. agricultural and related exports to the E.U. averaged 15.4 billion dollars yearly from 2015-2019, and four billion dollars of those exports compete directly with MERCOSUR products, which puts them at particularly high risk. Likewise, preferential status for E.U. products in MERCOSUR will hurt the competitiveness of U.S. products to those South American countries. Ratification of the agreement by the European Union Commission and European Parliament is not a slam dunk given its overwhelming environmental concerns. The E.U. previously rejected the deal last October because of its concerns regarding the Brazilian government’s environmental policies. ********************************************************************************************** Tyson Adds Alt-Meat Sandwiches to Jimmy Dean Line Tyson Foods is adding breakfast sandwiches with soy-protein patties to its Jimmy Dean product line. The plant-based sandwiches are the latest offerings from the largest meat company in America and cater to the fast-growing alternative protein segment. They’re also the first alt-meat product under the Jimmy Dean sausage line. The Arkansas-based company says it’s selling an egg and cheese croissant sandwich with a plant-based patty at Sam’s Club locations in the U.S. A frittata sandwich with a soy patty, black beans, brown rice, quinoa (KEEN-wah), and egg whites is coming out this spring. The company’s first run into alternative meats was in 2019 with faux chicken nuggets and their blended meat and pea protein burger that was discontinued. “Plant-based foods are revolutionizing the way people eat, including at breakfast,” says Scott Glenn, Tyson’s senior director of marketing. “Expanding our portfolio to provide people with an alternative was critical.” The new items are coming out in the middle of an increasingly competitive protein market. ********************************************************************************************** Missouri River Reservoir System Ready for 2021 Runoff The full flood control capacity of the Missouri River Mainstream Reservoir System is available for the 2021 runoff season. “All 2020 flood water stored in the annual flood control zone has been evacuated as of December 21,” says John Remus, chief of the Army Corps of Engineers’ Missouri River Water Management Division. “The entire flood control capacity of the Mainstem System is available to capture and manage 2021 runoff, reducing flood risk while providing support to the other authorized project purposes.” December 2020 runoff in the Missouri River Basin above Sioux City, Iowa, was 1.2-million-acre feet, 148 percent above average. The 2020 calendar year runoff above Sioux City was 31.1 MAF, 121 percent above average. The average annual runoff is 25.8-million-acre feet. The 2021 calendar year runoff forecast for the upper Missouri Basin above Sioux City is 23.1 MAF, 90 percent of the average runoff. The runoff forecast is based on significantly drier-than-normal soil moisture conditions, low plains snowpack, and below-average mountain snowpack. “Runoff forecasts are developed using the best information as it exists today,” Remus adds. “As mountain snowpack continues to accumulate, our forecasts will be updated to reflect those changes.”
| Rural Advocate News | Monday January 11, 2021 |
Washington Insider: Inflation Debate Lingers Bloomberg is reporting this week that investors and economists who think America is in for a bout of inflation are seeing “fresh ammunition for their arguments.” That view is that the vaccines now hold the prospect of an end to pandemic restrictions and could bring consumers roaring back—and that pent-up demand could stimulate price increases. The incoming Biden administration likely will prop up household spending with more financial aid, the argument goes even as the dollar continues to weaken and commodity prices rise steadily. However, the predominant view among economists – including, crucially, at the Federal Reserve – is that it will be some time before the U.S. has to worry about inflation. Data due on Wednesday are expected to show that consumer prices increased 1.3% in 2020, and that in spite of rising costs for many producers the Fed's preferred measure won't exceed its 2% target even by the end of 2022. And Fed officials say they want to see inflation stay above that level for a while before they'll raise interest rates. Inflation skeptics point to job markets still depressed by the virus and deeper trends in demographics and technology that keeps prices down, as well as the risk that politicians will cut off support for the economy too early – as they've done in the recent past. So is inflation on its way back? Bloomberg argues that policy settings just got tweaked even further toward the “run-it-hot” end of the dial. Fiscal spending has been the engine of recovery from the coronavirus slump and President-elect Biden – who's promising to do more of it – has a clearer path to getting his plans through Congress after Democrats won both Senate seats in a run-off vote in Georgia. Americans are already spending more on goods than they did before the virus. If that's not yet the case with services, it's because lockdowns have taken consumer options off the table – something that should change as more people are inoculated. Morgan Stanley economists expect “a sharp rebound in demand, especially in COVID-sensitive sectors like travel and tourism,” as vaccines get a wider rollout in the spring. They forecast that core inflation, which strips out the prices of things like food or gasoline because they're more volatile, will hit the 2% threshold this year and overshoot it in 2022. Stimulus checks and higher unemployment benefits pushed household incomes up in the aggregate even as economic output shrank – a rare combination. And rising stock and housing markets helped add more than $5 trillion to the net worth of U.S. households in 2020. Also, higher-income and older people, more likely to self-quarantine, have accumulated savings while waiting out the pandemic, says Mark Zandi at Moody's Analytics. They've missed out on things like trips to the hairdresser, vacations and meals out and they're “in an especially good financial position to ramp up spending on these services once they feel safe.” Bloomberg's counter-argument is after 2008 the government and Fed also injected money into the economy, causing many to predict inflation that never arrived. Fiscal spending has been bigger this time, but so was the hole in the economy that it had to fill, so the result won't necessarily be overheating. So far, this decade looks much like the last one, says Ben May at Oxford Economics. “Deficient demand has been countered by looser monetary and fiscal policy. This has boosted asset prices, but underlying consumer price inflation has remained weak.” Another lesson from the financial crisis is that America's politicians aren't always the spendthrifts of popular caricature. They may actually suffer from the opposite bias. That's what happened after the 2008 crash, slowing the recovery. And a more tolerant view of deficits has taken hold since then. In addition, even optimistic forecasters say it will be years before the U.S. is employing as many people as it was in 2019. A key lesson from the long expansion of the 2010s was that those resource market declines were deeper than previously thought. That may be true for the post-pandemic economy too. Goldman Sachs, for example, raised its growth forecast after the Georgia election and now sees the economy expanding 6.4% this year – recouping all the COVID losses and then some. But it still doesn't expect core inflation to edge above 2%--triggering higher interest rates – until 2024. Bloomberg also expects the “transitory” developments to ultimately be overcome by considerable economic slack.” Were it not for a collapse in labor participation related to the pandemic, the unemployment rate would be closer to 9.5% rather than the 6.7% last reported, levels that would considerably mute the rhetoric among the inflationistas. But for monetary economists, higher prices only really count as inflationary when they stoke expectations of even higher prices in the future that generate momentum that is hard to control. That happened in the 1970s, Fed Chair Jerome Powell told reporters last month--but not more recently, and probably not this time, either. So, we will see. Clearly, the fight against the pandemic will be central to what happens in the near future – and the economic debates and trends should be watched closely by producers as them emerge, Washington Insider believes.
| Rural Advocate News | Monday January 11, 2021 |
November US Ag Exports Top $15 Billion For Second Month In A Row U.S. agricultural exports in November were valued at $15.48 billion, marking the second consecutive month above that level after they were at $15.13 billion in October. November ag imports totaled $11.37 billion, down from $11.62 billion in October, but still a second straight month above $11 billion. The result was a trade surplus of $4.11 billion, up from $3.52 billion in October. U.S. agricultural exports are typically the highest at the start of the fiscal year in October and then usually work lower from that point. Ag imports usually do not peak until the March-May timeframe. The November total for U.S. ag exports did not register a new monthly record as that was set in November 2013 when export totaled $15.81 billion. U.S. ag imports in Fiscal Year (FY) 2020 were at or above $11 billion for five months and the data sets the stage for another strong run for imports, especially with expectations that the U.S. economy will improve. But the export outlook could also remain strong with the U.S. dollar under pressure, making U.S. ag exports more competitive on the world market. USDA forecasts U.S. ag exports at $152 billion for FY 2021, up from $135.9 billion in FY 2020, with imports at a record $137 billion, up from a record $136.0 billion in FY 2020.
| Rural Advocate News | Monday January 11, 2021 |
USTR Indefinitely Suspends Tariffs Over French Digital Services Tax The U.S. will not impose tariffs as a result of the Section 301 investigation of France's Digital Services Tax (DST), according to a statement from the Office of the U.S. Trade Representative (USTR), handing the decision over the incoming Biden administration. USTR notified of additional tariffs in July that were to have taken effect Jan. 6, but that date arrived with no formal action or announcement from USTR. “The U.S. Trade Representative has decided to suspend the tariffs in light of the ongoing investigation of similar DSTs adopted or under consideration in ten other jurisdictions,” USTR said. While those investigations have “significantly progressed,” USTR said, they have “not yet reached a determination on possible trade actions.” The matter now lands with the incoming Biden administration which has indicated that trade matters are going to be further down the list of their focal points as combatting the COVID pandemic and rebuilding the U.S. economy will take center stage. However, given the potential impacts such tariffs could have on services trade, this is a decision that could well be viewed as an economic matter which could elevate it as a focal point for the new administration. France and other countries feel American companies are profiting enormously from local markets while making only limited contributions to public coffers. Paris has offered to withdraw the tax as soon as an OECD deal is reached, while other countries are looking at implementing their own DST. As noted, the USTR decision puts the responsibility of the tax disputes on the incoming Biden administration. "America is going to have to respond," Sen. Ron Wyden, D-Ore., the next chairman of the Senate Finance Committee. "Many of these unilateral taxes have been designed to target American companies that are generating high-skill, high-wage jobs."
| Rural Advocate News | Monday January 11, 2021 |
Monday Watch List Markets USDA's weekly report of grain export inspections at 10:00 a.m. CST is the only official report on Monday's docket. The latest South American weather forecasts and any export news continue to get top attention ahead of Tuesday's USDA reports. Weather Snow and rain are in store for the Delta and portions of the Deep South Monday, causing travel and safety hazards and livestock stress. Dry conditions will be in place elsewhere. Temperatures continue to show above normal tendencies in northern and central areas. No bitter cold air is indicated.
| Rural Advocate News | Friday January 8, 2021 |
Stabenow Expected to Lead Senate Ag Committee With Democrats winning the two Georgia runoff Senate elections this week and a 50-50 majority expected in the chamber, Michigan’s Debbie Stabenow is poised to be the next Senate Agriculture Committee Chair. Vice President-Elect Kamala Harris, also a Democrat, will preside over the Senate, giving Democrats the slim majority. With full control by Democrats in Washington, D.C., farmers and ranchers can expect climate, along with the next farm bill, to dominate ag policy. Stabenow told Agri-Pulse this week, “As chair of the Agriculture Committee, we're going to lead an effort to create a voluntary climate exchange,” adding climate policy for farmers and ranchers is a top priority. Stabenow was previously chair of the committee from 2011-2015, the last time Democrats had majority control of the Senate. In the Georgia runoff elections this week, Democrats Jon Ossoff and Raphael Warnock defeated Republicans David Perdue and Kelly Loeffler, giving Democrats the narrow majority. Loeffler was a member of the Senate Ag Committee. ************************************************************************************ World Food Price Index Marks Seventh Month of Increases The monthly World Food Price Index increased in December for the seventh consecutive month. Recorded by the Food and Agriculture Organization of the United Nations, the index averaged 107.5 points in December 2020, up 2.3 points from November. Except for sugar, all sub-indices registered modest gains in December, with the sub-index of vegetable oil rising the most. Wheat export prices rose further in December, reflecting a tightening of supplies among major exporters, concerns over growing conditions, and expectations of lower than anticipated wheat shipments from Russia. Sorghum prices rose sharply in December as sales from the United States, mostly to China, remained robust. Corn export prices moved higher, sustained by continued concerns over crop prospects in South America. International rice prices also rose in December, underpinned by tight Thai and Vietnamese availabilities and heightened buyer interest for Indian and Pakistani supplies. For 2020, the index averaged a three-year high of 97.9 points, 2.9 points higher than in 2019. ************************************************************************************ Secretary Perdue Announces Georgia Broadband Funding In his final days as Agriculture Secretary, Sonny Perdue traveled to his home state of Georgia Thursday to make a rural broadband funding announcement. Perdue announced a $4.6 million investment in high-speed broadband for rural Georgia. The funding, the Department of Agriculture says, will connect 1,326 rural Georgia households to High-Speed Internet. The funding is part of the second round of USDA's ReConnect Program, to which Congress allocated $550 million. Broadband funding has been a priority for USDA under the Donald Trump Administration. Secretary Perdue says, "expanding access to this critical infrastructure will help ensure rural America prospers for years to come." In 2018, Congress provided $600 million to USDA to expand broadband infrastructure to approximately 167,000 households, 17,000 rural small businesses and farms, and more than 500 health care centers, educational facilities and critical community facilities located in 33 states. In April of 2020, USDA the Department has received 172 applications for $1.57 billion in Round Two of the program. ************************************************************************************ CHS Reports $69.7 Million in First Quarter Fiscal 2021 Net Income CHS, the nation's leading agribusiness cooperative, Thursday reported net income of $69.7 million for the first quarter of fiscal year 2021 that ended November 30, 2020. This compares to net income of $177.9 million in the first quarter of fiscal year 2020. The first quarter of fiscal year 2021 reflect revenues of $8.7 billion compared to revenues of $7.6 billion for the first quarter of fiscal year 2020. While income was lower, improved relations between the United States and foreign trading partners drove increased volumes and margins for grain and oilseed. And favorable weather conditions during fall harvest compared to the prior year increased volumes and margins across much of the CHS Ag segment. CHS CEO Jay Debertin says, "Improved trade opportunities with China and improved trade activity in Europe and Africa helped drive first-quarter improvement in our global grain business." CHS a global agribusiness owned by farmers, ranchers and cooperatives across the United States. ************************************************************************************ Energy Sorghum may Combine Best of Annual, Perennial Bioenergy Crops Energy sorghum may be ideal for producing bioenergy crops, according to the University of Illinois. Perennial grasses like miscanthus are a primary target for bioenergy crops because of their sustainability advantages, but they take several years to establish. Maize and other annual crops are easier to manage with traditional farming, but they are tougher on the environment. A study by researchers at the U.S. Department of Energy Center for Advanced Bioenergy and Bioproducts Innovation found that energy sorghum behaves more like miscanthus in the way it efficiently captures light and uses water to produce abundant biomass. It has higher nitrogen emissions like maize, but researchers believe careful fertilizer management could reduce those levels. The study offers a first look at how energy sorghum compares to maize and miscanthus grown in the Midwest. One researcher says sorghum appears to be a “middle-road crop,” with an annual growth cycle but the ability to use much less water than maize to produce “a ton” of biomass. ************************************************************************************ AFIA Announces New Dates for 2021 Event The American Feed Industry Association this week announced it will postpone its 2021 Purchasing and Ingredient Suppliers Conference. AFIA will now hold the event August 17-19, 2021, in Orlando, Florida. A spokesperson for the organization states, "We have decided to postpone PISC so that more of our members will be able to safely participate in person." Registration will open in the spring with two attendee options – in-person and hybrid. If circumstances do not allow for travel, attendees can participate virtually in the event's educational and networking components. The American Feed Industry Association's Purchasing and Ingredient Suppliers Conference is designed specifically for buyers and sellers of feed and pet food ingredients. The event offers industry experts the chance to exchange ideas and learn about issues affecting the industry. AFIA is the world's largest organization devoted to representing the business, legislative and regulatory interests of the U.S. animal food industry and its suppliers.
| Rural Advocate News | Friday January 8, 2021 |
Washington Insider: Conflict at the Capitol The news was dominated this week by three events; the debate and tumult at the Capitol on Wednesday; the formal recognition of Joe Biden by Congress as the next U.S. president early Thursday and the Georgia wins of two Democrats on Wednesday to shift control of the Senate. These developments have been endlessly broadcast and discussed, but continue to shock since they resulted in four deaths and 52 arrests during efforts breach one of the most iconic buildings in the United States after the president urged his supporters to oppose the ceremonial counting of the electoral votes. This led to an armed standoff at door to the House and breaches of several other buildings. Observers were shocked at the TV images and serious questions are being raised about the responsibility for and the impacts of the protests, Bloomberg said. Press reports said that the stunning display of “insurrection” was the first time the U.S. Capitol had been overrun since the British attacked and burned the building in August of 1814, during the War of 1812. However, also on Wednesday, lawmakers began returning to the Capitol once the building was secured and resumed their intended business, the confirmation of Biden's win by counting the votes in the Electoral College. It took until the early hours of Thursday morning, but Congress eventually counted and certified Biden as the victor. The Democratic win was sealed after House and Senate members fended off a final round of objections to the Nov. 3 election outcome raised by a handful of Republicans on President Trump's behalf. Shortly after lawmakers certified the election results, President Trump said there would be an “orderly transition” of power to Biden on Jan. 20 – but he also noted his continued “disagreement” with the outcome of the election. Senate Democratic leader Chuck Schumer, D-N.Y., and many others, placed the blame for the violence squarely on Trump, but argued that Congress wasn't deterred. “These images were projected to the world,” Schumer says. “This will be a stain on our country not easily washed away.” “I am genuinely shocked and saddened that our nation, so long the beacon of light and hope for democracy, has come to such a dark moment,” Biden said in brief remarks on the incident in Wilmington, Delaware on Wednesday. Bloomberg noted that President Trump has no further means to challenge the election outcome, barring an unlikely decision by the Supreme Court to consider his unsubstantiated claims of widespread fraud before Biden is inaugurated. However, the press also noted that the new president inherits a raging pandemic that has been all but ignored over the last two months as the current president has waged a legal and political campaign to overturn the election results. The new president's first test will be to more effectively distribute and deliver coronavirus vaccines, following the current administration's shortfalls of its year-end goal to inoculate 20 million Americans, Bloomberg said. The certification came on the same day that President-elect Joe Biden learned he will have a Senate Democratic majority after twin runoffs in Georgia. He has promised to put forward another economic stimulus bill soon after taking office that would include billions of dollars in spending for vaccine distribution and to safely reopen schools, with the goal of allowing most to begin in-person instruction within the first 100 days of his presidency. His team is building a full federal response to the pandemic that includes vaccine distribution, personal protective equipment and economic aid. Born in Scranton, Pennsylvania and raised in Delaware, Biden spent decades pursuing the presidency. He ran for the White House in 1988 and 2008 and considered running in 1984 and 2016. Elected to the Senate in 1972 at the age of 29, Biden served 36 years in the chamber. He chaired the Judiciary and Foreign Relations committees before becoming Barack Obama's vice president in 2009. He accepted the offer to be Obama's running mate on the condition that he would be the last person in the room when Obama made key decisions, though he wasn't always heeded. Throughout his candidacy, President-elect Biden endured criticism that he was too moderate or too old while focusing his appeals on a reliable base of support – African Americans, women, and a sliver of White voters who had voted Republican in 2016 but had soured on the president. His general-election argument in 2020 centered on the president's handling of the pandemic that had killed nearly a quarter of a million people by Election Day and put millions more out of work. He survived the president's efforts to attack him as corrupt and senile, returning the Rust Belt states of Wisconsin, Michigan and Pennsylvania to the Democratic column and adding Arizona and Georgia, two states that hadn't supported Democratic presidential candidates in this century. In all, Biden notched the same Electoral College vote total that Trump had secured four years earlier, 306 to 232. So, we will see. The violence at the capitol was previously threatened, but appears to have been not fully anticipated and will lead to numerous follow-up investigations, observers say. The nation's governing mechanisms seem likely to become slightly better aligned, but clearly will be deeply tested in the coming weeks, debates that should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Friday January 8, 2021 |
Smithfield Foods Readying Vaccines For Employees Smithfield Foods said it is actively preparing for COVID-19 vaccine distribution to its employees and has medical capabilities at its U.S. plants. The meat processing sector was one of the hardest hit by the virus. The U.S. Center for Disease Control and Prevention indicated food and ag workers should receive the vaccine in a later phase, after healthcare workers and those over the age of 75. The meat industry has also offered up their cold storage facilities to help with storage of the vaccines given the need for those to be stored in cold conditions.
| Rural Advocate News | Friday January 8, 2021 |
World Food Prices Continued To Rise In December World food prices rose a seventh consecutive month in December, with the UN Food and Agriculture Organization's food price index averaging 107.5 points in December, up from 105.2 in November. All food categories posted increases for the month except for sugar. For all of 2020, the index averaged 97.9 points, a three-year high and a 3.1% increase from 2019. However, that still marked a decline from the 2011 peak in the index. The rise in food prices globally could become an issue moving forward as countries that rely on food imports are facing increased costs at a time when they are also dealing with the COVID pandemic
| Rural Advocate News | Friday January 8, 2021 |
Friday Watch List Markets At 7:30 a.m. CST, the U.S. Labor Department will release nonfarm payrolls for December and the latest U.S. unemployment rate, last seen at 6.7%. Traders will continue to keep an eye on the latest South American weather forecasts and any export news that develops. Weather Friday brings a dry start to the weekend in most crop areas. Exceptions will be the western Plains with light snow and portions of the Mid-South with rain and snow. Temperatures maintain seasonal to above normal values north and central and below normal south. There is no bitter cold indicated.
| Rural Advocate News | Thursday January 7, 2021 |
EPA Nominee Meets with Farm Groups President-elect Joe Biden's pick to lead the Environmental Protection Agency met with farm group leaders Tuesday. Michael Regan, the EPA Administrator-designate, hosted a virtual round table with more than 16 members of the Ag CEO Council and staff. The Biden transition team says Regan reiterated President-elect Joe Biden's commitment to working with agricultural leaders to promote healthy and secure food supplies, clean air, and clean water. They also discussed how the incoming Biden-Harris Administration wants to work closely with farmers to find "practical, common-sense solutions to environmental challenges." They also discussed how the incoming administration can create jobs and expand economic opportunities in rural communities through the Build Back Better plan, and to “harness the ingenuity of farmers and ranchers to promote clean energy and tackle climate change.” The meeting included American Farm Bureau Federation President Zippy Duvall, along with leadership from the American Soybean Association National Corn Growers Association, The National Cattlemen’s Beef Association, National Pork Producers Council, and others. ************************************************************************************ Rural Group Urges Biden to Pick Well-Qualified, Diverse USDA Leaders The Rural Coalition urges President-elect Joe Biden to select highly qualified leaders for Department of Agriculture politically appointed positions. The group of more than 70 food and farming organizations sent the request to the incoming administration in a recent letter. The letter calls on Biden to choose USDA mission and agency leaders who deeply understand how to utilize the full range of USDA programs to achieve his goals of racial justice, climate change, and pandemic recovery. The letter states, “We have the opportunity and imperative now to work together to make things happen in a way that didn't happen before,” at USDA. Further, the organization says Biden should start doing so by nominating Native American Agriculture Fund CEO Janie Simms Hipp as the USDA Deputy Secretary. Hipp is the former senior advisor for tribal relations to former Agriculture Secretary Tom Vilsack and director of the Office of Tribal Relations. The letter adds, “We stand ready to work with a progressive and racially diverse leadership team at USDA.” ************************************************************************************ COVID-19 Taking Heavy Toll on Farmers’ Mental Health A majority of farmers and farm workers say the COVID-19 pandemic has impacted their mental health, according to a new American Farm Federation Bureau poll. The results, announced Wednesday, find more than half of respondents say they are personally experiencing more mental health challenges than they were a year ago. The survey of rural adults and farmers and farmworkers explores how the pandemic has affected their mental health personally, and in their communities. The survey also explored how attitudes and experiences around mental health have changed in rural and farm communities since AFBF conducted its first rural mental health survey in 2019. Farm Bureau President Zippy Duvall says, "My takeaway from this survey is that the need for support is real, and we must not allow lack of access or a 'too tough to need help' mentality to stand in the way." The survey of 2,000 rural adults was conducted by Morning Consult in December. ************************************************************************************ USDA Seeks Members for Advisory Committee on Urban Agriculture The Department of Agriculture seeks members for a new advisory committee on urban agriculture. The committee is part of a broader effort to focus on the needs of urban farmers. The 12-person committee will advise the Secretary of Agriculture on the development of policies and outreach relating to urban, indoor, and other emerging agricultural production practices and identify any barriers to urban agriculture. USDA Undersecretary Bill Northey says, "This group will underscore USDA’s commitment to all segments of agriculture." USDA seeks four agricultural producers for the committee, two in urban areas and two who use innovative technology. The committee will also feature two representatives from higher education or extension programs and a member from a nonprofit organization. USDA also seeks a committee member with supply chain experience, one from a financing entity and two with experience in urban agriculture production. The nomination deadline is March 5, 2021. Find more information about the nomination process at fsa.usda.gov. ************************************************************************************ Quality Loss Adjustment Program Signup Open Signup is open for the Quality Loss Adjustment Program, just announced by the Department of Agriculture. Funded by the Further Consolidated Appropriations Act of 2020, the program provides assistance to producers who suffered eligible crop quality losses due to natural disasters occurring in 2018 and 2019. Eligible crops include those for which federal crop insurance or Noninsured Crop Disaster Assistance Program coverage is available, except for grazed crops and value loss crops, such as honey, maple sap, aquaculture, floriculture, mushrooms, ginseng root, ornamental nursery, Christmas trees, and turfgrass sod. Additionally, crops that were sold or fed to livestock or that are in storage may be eligible. However, crops that were destroyed before harvest are not eligible. Crop quality losses occurring after harvest, due to deterioration in storage, or that could have been mitigated, are also not eligible. The deadline to apply for QLA is Friday, March 5, 2021. For more information, visit farmers.gov/quality-loss. ************************************************************************************ NCBA Rolls Out New Event for 2021 The National Cattlemen’s Beef Association Wednesday announced the 2021 Cattle Industry Convention Winter Reboot. Planned for February 23-24, the event allows the organization to come together for industry news, updates, education and networking. NCBA says Winter Reboot attendees will receive a sneak peek into plans for the Cattle Industry Convention and the Cattlemen’s College, moved to August of this year due to COVID-19 restrictions. NCBA CEO Colin Woodall says, “This virtual experience will provide vital industry updates and education as we start the New Year.” Winter Reboot sessions include an NCBA Washington, D.C. issues update and expectations with the new administration. Ten educational programs will be offered covering topics such as sustainability, as well as a tech tool introduction. A virtual marketplace will also be featured during the Winter Reboot to allow attendees interaction with leading agribusinesses. Registration for the Winter Reboot is now open, and details about the event can be found at convention.ncba.org/winter-reboot.
| Rural Advocate News | Thursday January 7, 2021 |
Washington Insider: Controversial Dietary Guidelines The USDA, HHS dietary guidelines are well known in schools and other institutions where they are used extensively by program administrators to evaluate the quality of their offerings and for other purposes. They are published widely as bulletins, posters, brochures, books, and — more recently — websites and social media. The federal effort is long-standing — mainly begun after the U.S. military found many recruits significantly under nourished in World War I. They are also seen as important by the food industry which not only takes to heart at least some of their advice but also pushes back in many cases when the advice is unwelcome — as it sometimes is. Not surprisingly, this guidance has changed frequently to reflect advances in science and the role of specific foods and nutrients. The earliest guidance promoted healthy food “groups,” food safety, food storage, and ensuring that people get adequate minerals and vitamins. Today, it is much different. Beginning in 1977, after years of discussion, scientific review, and debate, the U.S. Senate Select Committee on Nutrition and Human Needs, led by Senator George McGovern formulated Dietary Goals for the United States that recommended reduction of obesity and controlled use of key foods such as refined and processed sugars and fats. In response, some groups and individuals argued that available science was inadequate to support such specific recommendations. In response, USDA and Health and Human Services selected well known scientists from the two Departments to address the public's need for authoritative and consistent guidance. Later, the report turned increasingly to outside experts. Last week, USDA and Health and Human Services, which every five years updates the Dietary Guidelines for Americans, released new recommendations that stuck with existing standards for sugar and alcohol, the Washington Post reported this week. Not everyone was pleased. The two agency's scientific advisory committees had recommended Americans cut their consumption of both, citing — in the case of sugar—high rates of obesity, Type 2 diabetes, cardiovascular disease and cancers, and — in the case of alcohol — growing evidence that consuming higher amounts of alcohol is associated with an increased risk of death. The group's recommendations — that sugar intake be limited to 6% of daily calories, instead of the current 10%, and that both men and women limit daily alcohol consumption to one drink a day — were rejected. Although “the preponderance of evidence supports limiting intakes of added sugars and alcoholic beverages to promote health and prevent disease,” the report said, “the evidence reviewed since the 2015-2020 edition does not substantiate quantitative changes at this time.” In response, Marion Nestle, a professor emerita of nutrition and food studies at New York University, told the New York Times she was “stunned.” Elizabeth Mayer-Davis, chair of the department of nutrition at the University of North Carolina at Chapel Hill, called it a “lost opportunity for a stronger public health message.” The guidelines are no mere academic exercise, the Post argued. They have a tangible impact on the country's eating habits, affecting federal food programs such as the National School Lunch Program, military rations and food stamps, and influencing decisions by food producers. No surprise, then, that manufacturers of sugary beverages hailed the unchanged guidelines. That this year's guidelines were issued in the midst of the unprecedented health threat of the COVID-19 pandemic — which has been particularly deadly for those with diet-related preexisting conditions such as obesity and diabetes — making them all the more galling. The Post charged that the committee's language will add to the damage by the this “science-averse administration.” So, we will see. The overall dietary guidelines effort has become increasingly controversial over time, both as many of the health threats related to diets continue to increase and as the food industry becomes more sophisticated in its defense of its operations and products — and in efforts to counter government interventions in the definition of acceptable practices. These are issues and debates that affect large markets and groups and should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday January 7, 2021 |
USTR Formally Publishes Changes to Section 301 Tariff Actions In Airbus Dispute The U.S. has now published a notice in the Federal Register outlining the changes to its Section 301 tariffs relative to the Airbus dispute with the European Union (EU). The Office of the U.S. Trade Representative (USTR) announced the adjustments December 30 and they will take effect January 12, according to the notice. Additional goods from France and Germany will be subject to additional tariffs under the action, USTR said, including aircraft manufacturing parts from France and Germany, certain non-sparkling wine from France and Germany, and certain cognac and other grape brandies from France and Germany
| Rural Advocate News | Thursday January 7, 2021 |
USDA Opens Signup For Quality Loss Adjustment (QLA) Disaster Help USDA opened signup for the Quality Loss Adjustment (QLA) Program to provide assistance to producers who suffered eligible crop quality losses due to hurricanes, excessive moisture, floods, drought, tornadoes, typhoons, volcanic activity, snowstorms, and wildfires occurring in calendar years 2018 and 2019. USDA also published a final rule for the effort in Federal Register January 6. USDA also amended provisions for the Wildfire and Hurricane Indemnity Program Plus (WHIP+) to be consistent with the Further Consolidated Appropriations Act, 2020, by adding excessive moisture and drought occurring in 2018 and 2019 as qualifying disaster events and clarifying eligibility of sugar beets.
| Rural Advocate News | Thursday January 7, 2021 |
Thursday Watch List Markets As usual, Thursday morning is busy with USDA's weekly export sales and U.S. jobless claims out at 7:30 a.m. CST, along with the U.S. trade deficit for November and an update of the U.S. Drought Monitor. U.S. natural gas inventory is set for 9:30 a.m. and USDA will have more specific export information available for November later Thursday morning. Weather Light to moderate rain is in store for the Delta and Deep South Thursday. We'll also see scattered light snow in the western Midwest and snow in the far northwestern Plains. Other crop areas will be dry. Temperatures will be seasonal to above normal north and central and below normal south. No bitter cold is part of the scene.
| Rural Advocate News | Wednesday January 6, 2021 |
Latest Ag Economy Barometer Released Farmer sentiment improved modestly in December, according to the latest Ag Economy Barometer. The CME Group/Purdue University index, released Tuesday, rose to a reading of 174, up seven points from November. December’s sentiment improvement still left the barometer nine points lower than in October. The Index of Current Conditions climbed 15 points to 202, while the Index of Future Expectations increased by just five points to 161. Organizers say the farm income boost provided by the ongoing rally in crop prices appears to be the driving force behind the improvement. However, comparing survey results from before the November election to the post-election time frame, there continues to be less optimism following the election. Farmers note concerns about future ag exports and more worries about increasing environmental regulations and prospects for higher taxes. Additionally, the number of farmers concerned that the farm income safety net will weaken remained higher post-election, as did the percentage of farmers expecting government support for the ethanol industry to decline. ************************************************************************************ Farmers to Families Food Box Program Renewed The Department of Agriculture this week announced the continuation of the Farmers to Families Food Box Program. Agriculture Secretary Sonny Perdue says USDA will purchase an additional $1.5 billion worth of food nationwide through the fifth round of the program. Set to expire at the end of 2020, the recent coronavirus aid package provided more funding for the program. In total, USDA has distributed more than 132 million food boxes in support of American farmers and families affected by the COVID-19 pandemic. Secretary Perdue says this new round will “go a long way in helping American families access nutritious and healthy meals.” USDA will again purchase combination boxes to ensure all involved recipient organizations have access to fresh produce, dairy, meat products, and seafood will also be included in this round. Contract awards are expected to be made by January 19. Deliveries will begin shortly after awards and continue through the end of April. ************************************************************************************ Conservation Reserve Signup Period Open Farmers can sign up now for the Conservation Reserve Program through February 12, 2021. The program, administered by The Department of Agriculture's Farm Service Agency, provides annual rental payments for land devoted to conservation purposes. FSA Administrator Richard Fordyce says the signup period "gives producers and landowners an opportunity to enroll for the first time or continue their participation for another term." The popular program allows farmers and ranchers to establish long-term, resource-conserving plant species, control soil erosion, improve water quality and enhance wildlife habitat on cropland. General signup includes increased opportunities for wildlife habitat enrollment through the State Acres for Wildlife Enhancement initiative. New cropland offered in the program must have been planted for four out of six crop years from 2012 to 2017. Additionally, producers with land already enrolled but expiring on September 30, 2021, can re-enroll this year. The acreage offered by producers and landowners is evaluated competitively. Accepted offers will begin October 1, 2021. ************************************************************************************ Newhouse: House Rules Change Silences Rural America Representative Dan Newhouse says the new rules in the House of Representatives “are further isolating rural American voices.” The Washington state Republican issued a statement on the rules package voted on at the beginning of the new session this week. Newhouse claims the rules package limits the ability for “those of us in a growing Republican Conference to represent those who elected us." The package includes language making changes to the motion to recommit, a tool used by the minority party to make last-minute changes to bills on the floor. Instead, the bills would be sent back to committee. Newhouse calls the rule change, and others, "detrimental to the tradition and function of the People’s House.” However, the motion to recommit is largely seen as a political tool against the majority. House Speaker Nancy Pelosi says Democrats have crafted a package of reforms, “which will make the House more accountable, transparent and effective in our work.” ************************************************************************************ Bill Containing Relief for Derecho Impacted Farmers Signed The year-end legislative package includes tax relief for anyone in presidentially declared disaster areas, including those impacted by the August derecho. The Disaster Tax Relief Act of 2020 was signed into law by President Donald Trump as part of the Consolidated Appropriations Act. The bipartisan bill removes penalties on early withdrawals from retirement accounts, provides a tax credit for employee retention during business interruption, and encourages charitable giving to affected areas by suspending limits on deductions for certain contributions. Additionally, the legislation creates special rules for qualified disaster-related personal casualty losses. The bill also allows low-income workers to use their previous year’s income to claim certain tax credits, ensuring that they do not lose access to the credits or receive a lower amount. The bill was introduced by Iowa Senators, Republicans Chuck Grassley and Joni Ernst, in September after touring the damage following the historic derecho and meeting with local leaders and nonprofits. ************************************************************************************ New Book Helps Kids Connect with Soybean Farms A new children's picture book about soybean farming offers a valuable resource to parents and educators. The American Farm Bureau Foundation for Agriculture's Feeding Minds Press released a new book, My Family's Soybean Farm, along with a companion educator guide. This third title from Feeding Minds follows the farm adventures of Alexander, who takes readers on a tour of his family's soybean farm. The book shows how soybeans are planted, grown and harvested, technology used on the farm, pest management techniques, and the many different products soybeans are used in. The book, geared for grades K-2, combines illustrations with real photographs. AFB Foundation Executive Director Daniel Meloy says, "the unique combination of colorful illustrations and photographs will engage young readers while bringing the farm to life.” My Family’s Soybean Farm is now available in paperback for purchase directly from Feeding Minds Press, Amazon and Barnes & Noble online. Special bulk pricing is also available.
| Rural Advocate News | Wednesday January 6, 2021 |
Washington Insider: Bigger Wind Turbines Amid all the political tensions across the country this week, the New York Times is reporting that the “technology of wind turbines is about to change dramatically.” It describes a prototype turbine at the mouth of Rotterdam with rotors longer than two American football fields. Later models will be taller than any building on the mainland of Western Europe, the Times says. The machine in the Netherlands is a test model for a new series planned by General Electric designed to have the potential to power cities, supplanting coal or natural gas-fired plants that form the backbones of many electric systems today. However, GE has yet to install any of its machines offshore, the Times says and the company faces questions about how quickly and efficiently it can scale up production. But it thinks that “already the giant turbines have turned heads in the industry.” An analyst said the machine's size and advance sales had “shaken the industry.” The new generation of machines are about a third more powerful than the largest already in commercial service. They will have a generating capacity that would have been almost unimaginable a decade ago, with each one will be able to turn out 13 megawatts of power – enough to light up a town of roughly 12,000 homes – and with each turbine capable of producing as much thrust as the four engines of a Boeing 747 jet, according to G.E. The plan is to deploy them at sea where developers have learned that they can install larger and more numerous turbines and where winds are stronger and more reliable. The race for larger scale turbines has moved faster than many industry figures foresaw. G.E.'s Haliade-X generates almost 30 times more electricity than the first offshore machines installed off Denmark in 1991. Customers are expected to demand even bigger machines in the future. Offshore technology took hold in Northern Europe in the last three decades and is now spreading to the East Coast of the United States as well as Asia, including Taiwan, China and South Korea. The big-ticket projects costing billions of dollars that are possible at sea are attracting large investors, including oil companies like BP and Royal Dutch Shell, who want to enhance their green energy offerings quickly. Capital investment in offshore wind has more than tripled over the last decade to $26 billion, according the International Energy Agency, the Paris-based forecasting group. G.E. began making inroads in wind power in 2002 when it bought Enron's land-based turbine business – a successful unit in a company brought down in a spectacular accounting scandal – at a bankruptcy auction. It was a marginal force in the offshore industry when its executives decided to try to crack it about four years ago. The company saw a growing market with only a couple of serious Western competitors and proceeded to more than double the size of their existing offshore machine, which came to G.E. through its acquisition of the power business of France's Alstom in 2015. The idea was to gain a lead on key competitors like Siemens Gamesa and Vestas Wind Systems, the Danish-based turbine maker. The efficiency of large-scale machines provides a powerful incentive for developers to go for the largest available in order to win auctions for offshore power supply deals that many countries have adopted, said Vincent Schellings, who has headed design and production of the G.E. turbine. “That is where turbine size plays a very important role.” Among the early customers is Orsted, a Danish company that is the world's largest developer of offshore wind farms. It has a preliminary agreement to buy about 90 of the Haliade-X machines for a project called Ocean Wind off Atlantic City, N.J. “I think they surprised everybody when they came out with that machine,” said David Hardy, chief executive of Orsted's offshore business in North America. On Dec. 1, G.E. reached another preliminary agreement to provide turbines for Vineyard Wind, a large wind farm off Massachusetts and it has deals to supply 276 turbines to what is likely to be the world's largest wind farm at Dogger Bank off Britain. These deals could add up to $13 billion, estimates Shashi Barla, principal wind analyst at Wood Mackenzie, a market research firm. The waves made by the G.E. machine have pushed Siemens Gamesa to announce a series of competing turbines. Vestas, which until recently had the industry's biggest machine in its stable, is also expected to unveil a new entry soon. To pull off its gambit, G.E. had to start “pretty much from scratch,” Schellings said. The business unit called G.E. Renewable Energy is spending about $400 million on design, hiring engineers and retooling factories at St. Nazaire and Cherbourg in France. Offshore turbines account for only about 5% of the generating capacity of the overall wind industry, but that number is expected to grow. G.E. still must work out how to manufacture large numbers of the machines efficiently, initially at the plants in France and, possibly later, in Britain and the United States. With a skimpy offshore track record, G.E. also needs to show that it can reliably install and maintain the big machines at sea, using specialized ships and dealing with rough weather. So, we will see. The new U.S. administration appears to be interested in supporting investment in non-fossil fuel energy – including wind power. At the same time, competing global investors appear to be interested in making their own substantial investments in new, more efficient technologies – trends that producers should continue to watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday January 6, 2021 |
CFAP 2 Payments Top $13 Billion USDA has now paid out $13.01 billion under the Coronavirus Food Assistance Program 2 (CFAP 2) as of January 3, including $6.17 billion in acreage-based payments, $3.4 billion for livestock, $2.22 billion for sales commodities, $1.17 billion for dairy and $54.0 million for eggs/broilers. Payments for seven commodities have reached $500 million or more, including corn ($3.35 billion), cattle ($2.78 billion), sales commodities ($2.14 billion), soybeans ($1.29 billion), milk ($1.17 billion), wheat $703 million), and hogs/pigs ($532 million). But attention is already shifting to the expected CFAP 3 effort that USDA will unveil soon as the agency sorts through the provisions in the COVID aid package approved by Congress back in December
| Rural Advocate News | Wednesday January 6, 2021 |
USDA To Purchase An Additional $1.5 Billion In Food Box Effort USDA will purchase an additional $1.5 billion in food nationwide for distribution via the Farmers to Families Food Box Program. The fifth round of food box purchases comes via funding provided via the COVID aid plan approved December 21. The effort will utilize organizations that previously participated and solicitations are expected to be issued by the end of this week. Seafood products will now be eligible along with other hard, semi-firm or semi-soft cheeses will be included. As of January 4, USDA said that 132.5 million Food Boxes had been invoiced. Contracts are expected to be awarded by January 19 with deliveries to begin shortly thereafter and continue through the end of April. This puts to rest speculation on whether USDA would operate another round of the popular program which many have viewed as a success.
| Rural Advocate News | Wednesday January 6, 2021 |
Wednesday Watch List Markets Wednesday's reports start with an estimate of U.S. private sector employment by ADP at 7:15 a.m. CST, followed by U.S. factory orders at 9 a.m. The U.S. Energy Department releases its weekly inventory report at 9:30 a.m. and the Federal Reserve puts out minutes from the latest Open Market Committee meeting at 1 p.m. CST. South American weather and export sales continue to receive daily attention. Weather Rain and mixed precipitation are in store for portions of the northern and western Midwest Wednesday, with rain moving through the southeastern Plains and a rain-snow mix in the Northwest. Dry conditions will be in effect elsewhere. Temperatures will be seasonal to above normal.
| Rural Advocate News | Tuesday January 5, 2021 |
Dairy Groups Welcome New Dietary Guidelines, Outline Needed Improvements Newly released federal dietary guidelines will benefit dairy, even as work remains to be done, according to the National Milk Producers Federation. Miquela Hanselman, NMPF’s regulatory affairs manager, says, “Dairy is in a good place." The latest update to the dietary guidelines includes a recommendation of three dairy servings in the Healthy U.S. Eating pattern, in keeping with past guidelines. The guidelines also recognize that Americans aren’t consuming enough dairy to meet their nutritional needs. The guidelines also recommend milk, yogurt, and cheese in the first-ever healthy eating patterns geared toward infants and toddlers ages birth to 24 months. Meanwhile, Edge Dairy Farmer Cooperative, one of the largest dairy co-ops in the country, urged Congress to help broaden the milk options children have in school. Cooperative President Brody Stapel states, “the agencies and scientific review committee missed an opportunity to address and include the newer, available science on the nutritional benefits from fuller-fat dairy and a wider array of products.” ************************************************************************************ USDA Extends Crop Insurance Flexibilities Amid Continuing Pandemic USDA's Risk Management Agency is extending crop insurance flexibilities for producers amid the COVID-19 pandemic. Specifically, relief provided for electronic notifications and signatures is extended through July 15, 2021. Organic certification, replant self-certification and assignment of indemnity are extended through June 30, 2021. RMA is also allowing Approved Insurance Providers further flexibilities for production reporting, submitting written agreement requests and obtaining producer signatures for written agreement offers. Producer signatures for written agreement offers, issued by RMA on or before June 30, with an expiration date on or before July 30, 2021, will allow producer signatures to be accepted after the expiration date with proper self-certification or documentation. However, all documentation and signatures for these offers must be completed no later than August 2, 2021. Insurance providers also have 30 business days to submit written agreement requests and applicable documentation for requests with submission deadlines before July 1, 2021. Similar flexibilities were announced in March of 2020, to help producers meet deadlines during the COVID-19 pandemic. ************************************************************************************ TFI and Biostimulant Coalition Unite The Fertilizer Institute Monday announced that it and the Biostimulant Coalition have reached a formal agreement to form a Biostimulant Council. The two organizations will work together to advance policy and regulatory frameworks that increase biostimulant market access and encourage research and innovation through the council. The Biostimulant Coalition is a non-profit group working to proactively address regulatory and legislative issues involving biological or naturally-derived additives. The group was formed in 2011. Biostimulant Coalition Executive Director David Beaudreau, Jr says, “The partnership with TFI will provide the Biostimulant Coalition with all the tools we need to continue serving the membership we have.” TFI President and CEO Corey Rosenbusch stated the organization will work to “ensure the industry has a workable biostimulant definition,” among other goals. Rosenbusch says the number one issue facing the biostimulant industry is the lack of a regulatory approval process that allows biostimulants to be marketed to or utilized by farmers. ************************************************************************************ AgFunder: 2020 Investors Sought Ecommerce, Tech The COVID-19 pandemic in 2020 caused many challenges for the food supply chain, but also many opportunities. AgFunder, a venture capital firm investing in agriculture, analyzed the 2020 startup and tech funding trends. Last year, COVID-19 increased the online grocery category as consumers were forced in many cases to turn to online shopping to fulfill their everyday grocery needs. Two of the year's largest deals went to an eGrocer: China's Missfresh, which banked $495 million in July from investors, followed by a $306 million injection from Chinese state-linked funds. Other big eGrocery funding deals include Instacart, BigBasket in India, and other online grocery startups. Likewise, online meal delivery apps also attracted major funding during the year. U.S.-based DoorDash raised $400 million during the first half of 2020, before going public in a blockbuster $71 billion IPO. Another effect of the pandemic and lockdowns is an increased interest in technologies that takes human out of the process, whether it be farming, manufacturing, or logistics. ************************************************************************************ University of Missouri Announces Center for Regenerative Agriculture The University of Missouri College of Agriculture, Food and Natural Resources plans to dive deeper into regenerative agriculture. CAFNR (calf-ner), as it’s known, announced the formation of the new Center for Regenerative Agriculture Monday. While there is no single definition for regenerative agriculture, some key elements of the practice include increasing soil health and biodiversity, conservation practices, and contributing to overall sustainability and profitability. An initial startup grant to help the center get established and help hire a program manager comes from the Missouri Department of Conservation. Complimentary funding on cover crops and soil health that supports work related to the center comes from USDA's Natural Resources Conservation Service, the Missouri Department of Natural Resources, the Walton Family Foundation, and the Foundation for Food and Agriculture Research. Rob Myers, an adjunct associate professor in the Division of Plant Sciences, will serve as the center's faculty director. Myers is a former National Program Leader for Sustainable Agriculture with the Department of Agriculture. ************************************************************************************ Sorghum Checkoff Names Norma Ritz Johnson as Executive Director The United Sorghum Checkoff Program Monday announced Norma Ritz Johnson as the organization’s third executive director. Johnson most recently served as Executive Vice President for the Lubbock Chamber of Commerce, where she led initiatives and staff communications with an emphasis on transportation, agriculture and health care. As a leader, her teams implemented programs that were awarded the national Chamber of the Year twice in the last 11 years. Sorghum Checkoff CEO Tim Lust says Johnson "brings strong organizational management with a background in agriculture and sorghum." She also served as Communications Director for National Sorghum Producers in the early 2000s. Johnson says, "I'm eager to roll my sleeves up and get to work helping to bring value to the organization and sorghum producers." Johnson replaces Florentino Lopez, who has served as the organization's executive director since 2011. Lopez will continue to serve the sorghum industry in a new capacity consulting on international market development.
| Rural Advocate News | Tuesday January 5, 2021 |
Washington Insider: Last Minute Rules Controversies During the “wind down” phase, administrations often propose unusual rules that would be at least somewhat unlikely at other times. This week, the Washington Post is reporting that the White House is preparing to temporarily freeze some foreign aid during the President's final days in office — slowing down funds already approved by Congress. The administration can't unilaterally cancel the funding, but it can “bog the process down” by asking Congress to claw the money back. Lawmakers will likely reject this request, but the act of asking Congress to recoup the money allows the White House to freeze it until the president leaves office on Jan. 20. The president has long complained about U.S. taxpayer money going to other countries, but Congress has repeatedly blocked him from doing anything about it. While official details on the proposal are scarce, U.S. foreign aid officials had been expecting some sort of effort by the White House to freeze their funding, ever since President Trump blasted the bipartisan coronavirus stimulus and spending bill passed by Congress last week. In a surprise video statement, he criticized aid going to Cambodia, Myanmar, Egypt, Pakistan and Central America, among other programs. President Donald Trump signed the bill into law, but then issued a statement saying he would demand “many rescissions” under the Impoundment Control Act, which allows the president to temporarily freeze certain funding after sending a notice to Congress on the amount of the proposed rescission and the reasons for it. If Congress does not pass legislation approving the rescission within 45 days, the funds are unfrozen and must be spent as Congress originally intended. The 45-day clock runs only when Congress is in session so the administration will be able to freeze the funds only through Jan. 20, when President-elect Joe Biden takes office. Trump officials, which had repeatedly tried to cut foreign aid in its formal budgets only to be rebuffed by Congress, have used the rescission process as a tool to make it harder for the State Department and USAID to spend money. Last year, it attempted to cancel up to $4 billion in foreign aid, but scrapped the plan after facing opposition from both Republican and Democratic lawmakers. In another “end of administration report” The Hill is reporting that the White House appears to have concluded its review of EPA's controversial “secret science” rule — which is expected to limit the types of scientific research the agency can consider in its rulemaking process. The OMB website lists the rule's review as concluded this week. The rule, which EPA has billed as a transparency measure, is criticized by some as an effort to limit the agency's ability to consider studies that don't make their underlying data public. Critics argue that this rule could cause the agency to exclude important research like landmark public health studies that can't release participants' information. An agency spokesperson declined to say whether the rule had been finalized and signed by Administrator Andrew Wheeler, saying “we have nothing to announce at this time” in an email to The Hill. “The American public deserve transparency and access to data that determine regulatory decisions and in a way that protects the privacy of individuals and other confidential information,” the spokesman said. He also declined to say whether there were significant changes to the rule, which has been nicknamed the “secret science” rule since a version of it was proposed in March. Sen. Tom Carper of Delaware, the top Democrat on the Senate's Environment and Public Works Committee, criticized the rule as “just one last gasp of science denial. Amid an ongoing public health crisis—a time when accessing the latest scientific research and embracing scientific advancements is a critical function of protecting human health — the Trump EPA is trying to limit the use of scientific data.” The rule also received pushback from the EPA's own Science Advisory Board earlier this year. “There is minimal justification provided in the proposed rule for why existing procedures and norms utilized across the U.S. scientific community, including the federal government, are inadequate, and how the proposed rule will improve transparency and the scientific integrity of the regulatory outcomes in an effective and efficient manner,” the SAB wrote in a report. “It is plausible that in some situations, the proposed rule will decrease efficiency and reduce scientific integrity,” it added. The March proposal was an altered version of the rule which was first pushed under then-EPA Administrator Scott Pruitt. The updated version expanded the scope of the rule to include agency activities beyond just rulemaking. In the newer version, the agency also wouldn't entirely exclude studies that don't publicize their data, but would give preference to studies that do make their data publicly available. The rule is one of several being pushed through by the administration during its final days. It has recently finalized an airline emissions regulation, reviews of air quality standards and changes to a lead contamination rule, The Hill said. So, we will see. Clearly, the current transition is a tension filled moment involving many bitter controversies — debates and battles that producers should watch closely as the process enters its final moments, Washington Insider believes.
| Rural Advocate News | Tuesday January 5, 2021 |
APHIS Seeks To Develop Information From Labs On Testing Of Animals For COVID-19 USDA's Animal and Plant Health Inspection Service (APHIS) is seeking public comment on developing an information request from labs that test animals for COVID-19. “To better meet its reporting requirements about emerging diseases to the OIE [World Organization for Animal Health], APHIS is interested in collecting information as to the detection of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) in animals,” APHIS said in a Federal Register notice. “To accomplish this, APHIS will distribute a request for information to U.S. laboratories engaged in the testing of animals for SARS-CoV-2, develop a questionnaire in NAHRS [National Animal Health Reporting System], and request that state animal health officials and U.S. laboratories provide SARS-CoV-2 animal testing data on a monthly basis.” The agency said it estimates the information collection will average 1.72 hours per response or a total of 1,626 hours. APHIS said the information gathered will be included in a request to approve the effort which will be made to the Office of Management and Budget (OMB).
| Rural Advocate News | Tuesday January 5, 2021 |
CRS Report Raises Question On Need For Additional Ag Aid While Congress approved another round of aid to U.S. farmers via what is expected to be the Coronavirus Food Assistance Program 3 (CFAP 3) effort, the Congressional Research Service (CRS) in a report at least raises the question as to whether such payments are needed. The report, released December 21, raised the issue of whether most producers need another round of coronavirus relief aid. It noted that most major crop and livestock commodities “have seen their prices increase substantially” since July because of improving market conditions, with the exceptions of beef cattle and dairy. “If current market conditions were to persist into the first half of 2021, it would appear that price declines would be a possible reason for a new round of CFAP payments for livestock and dairy, but not for row crops,” the report said. While prices for several commodities have improved and continue to have potential for additional increases, U.S. farmers have burned through a considerable amount of capital in dealing with trade-related and COVID-related market impacts. That has left many U.S. farmers in more of a cash-flow bind. While the CFAP payments have helped, producers have not been made whole by those dollars.
| Rural Advocate News | Tuesday January 5, 2021 |
Tuesday Watch List Markets Tuesday's only official report is the U.S. index of manufacturing from the Institute of Supply Management. Traders will continue to keep an eye on South American weather forecasts and any export news that arises. The stock market also will also get attention after Monday's sell-off. Weather Tuesday features snow in the northern Rocky Mountains and light snow crossing the eastern Midwest. Dry conditions are in store elsewhere. The disturbance producing the Rockies snow crosses into the Plains and western Midwest Wednesday.
| Rural Advocate News | Monday January 4, 2021 |
U.S. Raising Tariffs on Certain European Imports The U.S. government says it will raise tariffs on certain products coming into the country from the European Union. Reuters says those products include wines from France and Germany, as well as aircraft components. It’s the latest move in a longtime battle between Washington and Brussels over aircraft subsidies. The Office of the U.S. Trade Representative says it is adding tariffs on aircraft manufacturing parts and certain non-sparkling wines and other liquors from France and Germany. The USTR news release didn’t say when the tariffs would go into effect but did say details are forthcoming. The move comes as the two sides continue to negotiate a deal to end European subsidies to Airbus SE and American subsidies to plane manufacturer Boeing. The U.S. Wine Trade Alliance issued a release saying the action would cause further hardship for U.S. companies already hard-hit by previous tariffs and urged President-elect Biden to reverse course. “This action is a body blow for American companies,” the release says. “U.S. restaurants and small businesses are already struggling to survive, and this decision will only destroy more jobs.” Reuters also adds that officials from the EU and Airbus weren’t available for comment. ********************************************************************************************** Grain Exports End 2020 on High Note The newest grain export sales report from the USDA for the week ending on December 24 shows that 2020 is ending on a positive note. Soybean export sales for the 2020-2021 crop surpassed analyst expectations. The trade was looking for sales ranging between 7–25 million bushels. However, the new figure passed those estimates as sales jumped 74 percent from the previous week to 33.7 million bushels. Export sales cancellations also rose 23 percent to 7.9 million bushels. However, a Farm Futures article says that’s not surprising because a recent run-up in the price of soybeans likely caused some price resistance among smaller buyers. Weekly export sales for 2020-2021 corn also surpassed market expectations in last week’s report. Forecasters were looking in a range of 19-39 million bushels, but USDA reported a 55 percent increase in week-over-week sales to 43.1 million bushels. Rallying corn prices caused cancellations to increase to 5.1 million bushels. Wheat sales weren’t as strong as those of corn and soybeans. However, they were strong because of a weaker dollar and limited exportable supplies in the Black Sea region. The weekly total was up one-third from the previous week to 19.2 million bushels. *********************************************************************************************** Ethanol Production Drops to a Two-Month Low Ethanol output dropped week-to-week to its lowest level in over two months while stockpiles continue to increase. The Energy Information Administration says U.S. production of the biofuel dropped to an average of 934,000 barrels a day in the week ending on Christmas Day, down from 976,000 barrels the previous week. That’s the lowest total since the week ending on October 16. The Midwest, by far the biggest-producing region, output averaged 891,000 barrels a day. That’s a drop from 929,000 barrels a day the previous week and the lowest it’s been since mid-October. Gulf coast production also went lower, averaging 13,000 barrels a day last week, down from 17,000 the prior week. East Coast ethanol production was unchanged at 12,000 barrels a day, while both the Rocky Mountain and West Coast production levels were unchanged at 9,000 barrels a day. Ethanol stockpiles in the week ending on Christmas Day totaled 23.504 million metric tons. The Energy Information Administration says that’s up from 23.169 million metric tons in storage the previous week, and it’s the highest amount in storage since May 15. ************************************************************************************ Farmland Prices May Rise in 2021 After years of stability, farmland prices may be set to rise in 2021. Farm Journal’s Ag Web Dot Com says factors are coming together that may be about to send the price of land higher. Some of the key factors include government support for farmers, stronger commodity prices, low interest rates, limited farmland for sale, and strong interest from investors. Doug Hensley, president of real estate services for Hertz Farm Management in Iowa, says those factors are all driving the price of farmland higher. “We’ve sold more $12,000 to $14,000 per acre farms from September to December than the last three or four years combined.” Randy Dickhut of the Farmers National Company in Nebraska says when COVID-19 ground things to a halt in the spring of 2020, the land market ground to a quick stop. “Buyers and sellers both were cautious and pulled back because of the uncertainty,” he says. “Then, the land market began getting more active in the summer, which led to increasing interest in all types of land.” Investors also want a safe place to put some cash. Sales activity at Farmers National was up 49 percent in October and November versus the same time in 2019. ********************************************************************************************** Argentina Halts Corn Exports for Three Months Fresh off resolving their labor situation at the country’s ports, Argentina will now suspend corn exports until March 1. The country’s ag ministry made the surprise move as part of the government’s efforts to ensure ample domestic food supplies. “The decision is based on the need to ensure the supply of grain for the sectors that use it as a raw material for the production of animal protein such as pork, chicken, eggs, milk, and cattle, where corn represents a significant component of production costs,” the statement says. Argentina’s government is attempting to control food price inflation and provide relief to low-income families battling against a shrinking economy brought on by COVID-19. Ag Canada Dot Com says the South American nation is a major international supplier of corn, soybeans, and wheat, as well as the world’s top exporter of soymeal livestock feed. Farmers and other stakeholders in Argentina’s corn supply chain traditionally oppose this type of intervention in the markets. The head of the corn industry’s chamber in Argentina says, “We are absolutely surprised. This does not make sense. There was never a lack of corn in Argentina.” ********************************************************************************************** Biden’s EPA Nominee Reaches Out to Corn Growers Michael Regan of North Carolina is Joe Biden’s nominee to oversee the Environmental Protection Agency. It didn’t take long for Regan to begin reaching out to U.S. agriculture. In fact, it was the day before the official nomination announcement that Regan called National Corn Growers Association CEO Jon Doggett. “He called me on my cell phone at night,” Doggett says. “It was not set up and I was completely surprised.” Regan said he wanted to introduce himself and point out that “we have a lot of work to do together if I get confirmed,” and say how much he’s looking forward to working with U.S. agriculture. The Daily Scoop Dot Com says most of the conversation focused on working with corn growers to help reverse climate change. Regan said to Doggett, “I know the RFS is important to the corn industry, and climate change is important to Joe Biden. And we’re looking forward to helping farmers find opportunities to help us address climate change.” Doggett says, “That was good to hear.” Doggett also had the chance to talk to the future EPA chief about some of the needs of U.S. corn farmers that intersect with EPA regulation, including GMOs and glyphosate, that help farmers be more sustainable, both environmentally and economically.
| Rural Advocate News | Monday January 4, 2021 |
Washington Insider: Why Markets Boomed The New York Times says this week that “the central, befuddling economic reality of the United States at the close of 2020 is that everything is terrible in the world, while everything is wonderful in the financial markets.” It thinks this reveals the “sharp disparity between the pandemic year's haves and have-nots.” The report uses government data to conclude that salaries and wages fell less, in the aggregate, than even a careful observer of the economy might have thought. Employee compensation was down only 0.5% for the recent period, “more akin to a mild recession than an economic catastrophe.” The Times says the numbers are hard to understand since job numbers fell 6.1% in November compared with a year earlier, so how can employee compensation be down only 0.5%? The answer is found in the types of jobs lost, the report says. The millions of people no longer working because of the pandemic were disproportionately in lower-paying service jobs. Higher-paying professional jobs were more likely unaffected and a handful of were booming, such as warehousing and grocery stores, leading to higher incomes for those workers. The result is that wages, salaries and other forms of workers' compensation dropped modestly — $43 billion over the nine months — despite mass unemployment. “For all the attacks on the CARES Act that Congress passed in late March, the degree to which it served to support the incomes of Americans, especially those who lost jobs, is extraordinary,” the Times observes. Americans' income from unemployment insurance benefits was 25 times higher from March through November 2020 than in the same period of 2019 — partly because millions more jobless people were seeking benefits, of course. In total, unemployment insurance programs pumped $499 billion more into Americans' pockets from March to November than the previous year; $365 billion of it was a result of the expansion in the CARES Act. The $1,200 checks included in that legislation contributed a further $276 billion to personal income — much of which accrued to families that did not experience a drop in earnings. And the law's signature program to encourage businesses to keep people on their payrolls was the Paycheck Protection Program which pushed profits that accrued to owners of businesses and farms up narrowly, by $29 billion, but would have fallen by $143 billion if not for the PPP and a coronavirus food assistance program. The Times says that in total, Americans' cumulative after-tax personal income was $1.03 trillion higher from March to November of 2020 than in 2019. Some of the pessimism among economic forecasters (and journalists) in the spring reflected a failure to understand just how large and influential those stimulus payments would turn out to be, the report said. There's more: spending fell. One obvious result was a decline in spending on services, including restaurant reservations never made, flights not taken, sports and concert tickets not bought and the like which added up to serious money. Services spending fell by $575 billion, or nearly 8%. Less obvious were some of the other patterns affecting consumer spending in a pandemic. Also, durable goods spending was up by $60 billion while nondurable goods spending rose by $39 billion. But those outlays did not exceed the drop in spending on services as households' personal interest payments and other miscellaneous outlays dropped by $59 billion. Not only were American households, in the aggregate, taking in more money, but they were also spending less of it. Total outlays fell by $535 billion. This combination of soaring personal income and falling spending pushed savings up sharply. From March through November, personal savings was $1.56 trillion higher than in 2019, a rise of 173%. So, in spite of the economic hardships, Americans in the aggregate were building savings at a startling rate. Holding extra cash was one option — and sure enough, currency in circulation has spiked by $260 billion since February, a 14% increase. Deposits in commercial banks are way up — by 19% since the first week of March. And, for those a little more comfortable with risk, there was investing in stocks, which helps explain the 16% rise in the S&P 500 for the year. Or you could have used the occasion of the pandemic to buy a new house: home sales surged, and the S&P CoreLogic national home price index was up 8.4% in October from a year earlier. Essentially, the rise in savings among the people who avoided major economic damage from the pandemic has created a tide lifting the values of nearly all financial assets. And, the Federal Reserve played a role by lowering interest rates to near zero and promised to keep them there for years; bought government debt; and supported corporate bond markets. But the surge in asset prices has made its way into many sectors far from any form of Fed support, like stocks and Bitcoin. And the surge has, if anything, accelerated this fall despite a lack of additional stimulative action from the Fed. Still, the Times warns that the high asset prices may not hold and the fact that different groups fared so much differently likely signals growing pressure for specific, better focused programs in the future. It also notes that the 2021 economic narrative has yet to be written. If 2020 teaches one thing, it is that the story arc is far less predictable than you might think. Clearly, many of these trends are likely to receive significantly greater attention and emphasis in the future than in the past, trends producers should watch very closely as the year proceeds, Washington Insider believes.
| Rural Advocate News | Monday January 4, 2021 |
UK Approves Post-Brexit Trade Deal Britain's post-Brexit trading agreement with the European Union was signed into law, after being overwhelmingly approved by Parliament. It comes into effect tonight. The UK government overwhelmingly approved the post-Brexit trade deal with the EU after a marathon 14 hour long parliamentary process. Earlier Wednesday, the post-Brexit trade deal was signed by European Council President Charles Michel and European Commission President Ursula von der Leyen in Brussels. When signing the deal into law, UK Prime Minister Boris Johnson thanked his parliament for passing the Brexit bill in one day and said it marks a new chapter dealing with the EU. The deal will redraw the UK's ties with the EU and see importers and exporters face a new trading dynamic from January 1 and it has spurred concerns that trade could be disrupted in agri-food products.
| Rural Advocate News | Monday January 4, 2021 |
US To Adjust Retaliation In Airbus Dispute The U.S. will adjust its tariffs that it imposed on European Union (EU) goods in the wake of winning a dispute at the WTO over subsidies provided to Airbus. The U.S. took issue with the time period that the EU used to hit the U.S. with retaliatory tariffs after it was cleared to impose sanctions on the U.S. for subsidies to Boeing that the world trade body said ran counter to U.S. WTO commitments. The U.S. will now apply additional tariffs include aircraft manufacturing parts from France and Germany, certain non-sparkling wine from France and Germany, and certain cognac and other grape brandies from France and Germany, according to the Office of the U.S. Trade Representative (USTR). “The EU used trade data from a period in which trade volumes had been drastically reduced due to the horrific effects on the global economy from the COVID-19 virus,” USTR said in announcing the shift in tariffs. “The result of this choice was that Europe imposed tariffs on substantially more products than would have been covered if it had utilized a normal period.” Given that, USTR said the U.S. is “forced to change its reference period to the same period used by the European Union.” But the U.S. will adjust the product coverage by less than the full amount that would be justified utilizing the EU's chosen time period. The new U.S. tariffs will take effect January 12.
| Rural Advocate News | Monday January 4, 2021 |
Monday Watch List Markets Ready to start 2021, traders will be checking the latest South American weather forecasts and will pause at 8 a.m. CST to see if USDA has an export sale announcement. A report on U.S. construction spending is due out at 9 a.m., followed by USDA's weekly report of grain export inspections at 10 a.m. Weather Dry conditions will cover most of the central U.S. Monday. We may see some scattered light mixed precipitation in the northern Midwest. Precipitation will be heaviest in the Northwest with rain and mountain snow. Temperatures will be mild for the season.
| Rural Advocate News | Thursday December 31, 2020 |
Grain Worker Strike Ends in Argentina Argentina’s port and grain union workers have ended a 20-day strike after reaching an agreement on Tuesday, with the settlement coming after the government intervened in the dispute. The move lifts a major work stoppage that had left more than 150 ships stranded at the country’s ports. Argentina is one of the world’s largest suppliers of soybeans, corn, and wheat. The strike has hampered the large flow of grain out of the country, which has weighed down grain markets for several weeks. Failure to unload those grain ships at Argentina’s ports had cost the government approximately 1.9 billion dollars in payments to the ships’ owners. Market traders were concerned that an ongoing strike would cause global end-users to look to the U.S. for soybeans, but the U.S. is already dealing with tight soybean supplies. The possibility of expanding dryness in soybean-growing areas of South America over the next two weeks was adding fuel to a recent rally in soybean prices, which hit a six-year high earlier this week. Analysts at Bower Trading say weather and demand news will likely be the biggest market drivers now that the strike is over. ********************************************************************************************** China will Miss Phase One Buying Deadline China is a long way from meeting the commitments in its trade deal with the U.S. Farm Progress Dot Com says the latest data shows the Southeast Asian nation has imported just over half the goods it promised to buy from America in the Phase One Trade Agreement. Over the first 11 months of the year, China bought about 50.5 percent of the total 2020 target of $172 billion. That’s according to Bloomberg calculations based on figures from the U.S. Custom’s Administration. The outlook for the trade deal is uncertain as a new administration prepares to take office in Washington, D.C. As of the end of November, data shows that China had bought 54 percent of targeted manufacturing products, 53 percent of agricultural goods, and 31 percent of the energy products. Aggregate soybean imports reached $8.1 billion from January-November, compared with $10.2 billion in 2017. The trade deal says China’s imports of manufactured, agricultural, and energy goods in 2020 were to be no less than $32.9 billion, $12.5 billion, and $18.5 billion on top of 2017’s levels, putting the year’s targets at $110.4 billion, $36.6 billion, and $25.1 billion. ************************************************************************************ China to Increase Corn Production and Imports Chinese demand for corn will continue rising, with imports from the U.S. likely to improve in future years. University of Illinois economists say China was self-sufficient in corn production until 2015 and then relied on imports from Ukraine until 2019. The lower corn output over the last year in Ukraine forced China to turn to the U.S. for additional corn supplies. Economists Scott Irwin and Joe Janzen with the University of Illinois say China will likely increase domestic corn production, boost imports from overseas sellers, and dig into its stockpiles this year. “If Ukrainian production returns to normal and the Brazilian corn price is competitive with the U.S., both of which appear likely, U.S. exports of corn to China are likely to be lower in 2021-2022 than what’s projected for the current marketing year,” they say. “Even so, U.S. corn exports to China will likely be higher than in previous years.” The economists say they expect U.S. corn acreage to drop by 1.1 million acres to a total of 90.9 million next year, while soybean acres will rise 7.7 million acres to 90.8 million. Their report says ending stockpiles will have difficulty increasing much in the 2020-2021 marketing year. ********************************************************************************************** European Union, United Kingdom Trade Deal Becomes Official Boris Johnson, the Prime Minister of Britain, signed the post-Brexit trade deal with the European Union on Wednesday. Reuters says he added his signature to that of European Union leaders after the document was flown from Brussels to London. The trade deal was first announced on December 24, and it sets out the terms of Britain’s new relationship with the EU following its exit from the bloc earlier this year. The new deal will officially take effect on January 1, replacing a transitional arrangement in which EU trade rules applied to Britain. Johnson’s signature came hours after British lawmakers voted overwhelmingly in favor of the legislation implementing the deal. Lawmakers voted 521 to 73 to progress the bill to its final stages. The accord preserves Britain’s zero-tariff and zero-quota access to the European Union’s 450 million consumers, preventing a more chaotic split that had been feared by British businesses. ********************************************************************************************** Food Prices Rise During COVID-19 The USDA says grocery store prices rose 5.6 percent higher in June of 2020 compared with June of last year. Retail prices rose for all food-at-home categories except for fresh fruits. Many of the increases were a result of the coronavirus. COVID-19 disrupted the supply chains of multiple commodities and affected consumers’ food spending patterns. That put upward pressure on wholesale and retail food prices. Closing schools and stay-at-home orders in the spring of 2020 resulted in the dairy industry switching from supplying products for schools and restaurants to supplying products to grocery stores and other food-at-home retailers. Adapting to the change placed upward pressure on retail prices for dairy products, which rose 5.1 percent from June of last year to June 2020. Beef also suffered from supply chain disruptions. Decreased slaughter volumes because of COVID-19 led to a bottleneck in supply, which boosted prices. Retail beef and veal prices in June of 2020 were 25 percent higher than in June 2019. Much of this increase occurred after February of this year. The retail prices of other commodities rose as well, including egg prices were up 12 percent in June of this year compared to June 2019, while pork and poultry prices increased 11.8 and 8.7 percent, respectively. ********************************************************************************************** USDA Extends COVID-19 Flexibilities USDA’s Risk Management Agency is extending crop insurance flexibilities for producers during COVID-19. Specifically, the relief provided for electronic notifications and signatures that are extended through July 15, 2021. Organic certification, replant certification, and assignment of indemnity is extended through June 30, 2021. “We recognize that American agriculture continues to face challenges due to COVID-19,” says RMA Administrator Martin Barbre. “RMA remains committed to providing the flexibility that supports the health and safety of all parties while also ensuring that the federal crop insurance program continues to serve as a vital risk management tool.” RMA is also allowing Approved Insurance Providers further flexibilities for production reporting, submitting written agreement requests, and obtaining producer signatures for written agreement offers. Producers’ signatures for written agreement offers issued by RMA on or before June 30, 2021, with an expiration date on or before July 30, 2021, will allow producer signatures to get accepted after the expiration date with proper self-certification or documentation. However, all documentation and signatures for these offers must be completed no later than August 2, 2021. For more information, go to the Risk Management Agency’s website or contact your crop insurance agent.
| Rural Advocate News | Thursday December 31, 2020 |
Washington Insider Fed Commits to More Dovish Lineup Bloomberg is reporting this week that expected changes to the Federal Reserve Bank's interest-rate setting panel likely will make it even less likely to tighten monetary policy in the new year. The report expects this "more dovish view" no matter how much of a jolt the economy gets from the rollout of COVID-19 vaccines. In the annual rotation of voters on the Federal Open Market Committee, the four regional Fed presidents who receive that privilege in 2021 will be marginally more dovish -- or inclined to favor easy policy -- than the four they replace. The most notable shift comes as Chicago's Charles Evans, one of the most predictably dovish officials, takes the vote held this year by Cleveland's Loretta Mester, a relatively hawkish figure on the panel. In addition, a new permanent vote now belongs to Christopher Waller, the former research director of the St. Louis Fed who was sworn in as a member of the Fed's Board of Governors on Dec. 18. In one important respect Waller is decidedly dovish: He has long championed the view, more recently embraced by the Fed's leadership, that low unemployment doesn't automatically generate higher inflation. "If vaccines take hold, the prospect of rate hikes might get a little closer than it feels like today," said Stephen Stanley, chief economist at Amherst Pierpont Securities. "But they're still not likely to be moving rates in 2021." The Bloomberg report said that the Board, led by Chair Jerome Powell, this year adopted a new monetary policy framework that commits them to a more patient approach to raising rates than at any other time since the early 1970s. The committee has backed that up in two ways. Its members have declared they won't hike before the labor market has reached their estimate of maximum employment and inflation is on its way to exceeding their 2% target. They also submitted economic projections in December showing 12 of 17 FOMC members didn't expect a single rate hike until at least 2024. Still, the changes on the FOMC this year could influence the fine-tuning delivered by the Fed's asset-purchasing program, Bloomberg thinks. "The bank is currently buying $120 billion a month worth of Treasuries and mortgage-backed bonds in an effort to suppress longer-term borrowing costs for households and businesses. An unexpected negative turn for the economy could lead to calls to ramp up those purchases." With vaccines being distributed and a new $900 billion stimulus package just passed by Congress and signed into law by President Donald Trump, the economy may be poised for a robust rebound in the second half of 2021. That could make it more likely the Fed comes under pressure to taper its bond purchases. "Attitudes toward asset purchases might vary even among the group that is extremely dovish. If vaccines take hold, the prospect of rate hikes might get a little closer than it feels like today, said Stephen Stanley, chief economist at Amherst Pierpont Securities. But they're still not likely to be moving rates in 2021. So, I do think the change in composition matters in that sense, at least at the margin." Two other factors that could play a role: inflation and financial stability. On the first, inflation is on track to show a sharp year-on-year increase come spring, based purely on price drops triggered by the pandemic last March and April. A burst in economic activity could push that higher, leading to a debate over whether price gains might persist. Powell has already signaled he'd view sharp price increases in 2021 as "transient." With the new makeup of the committee, it's less likely that he'd provoke votes of dissent at Fed policy meetings by ignoring inflation. But there could also be new concerns over financial stability if a brightening outlook and super-low rates cause corporations to go on another debt binge and financial markets to react giddily. "As we shift gears from a delicate phase to one that's more likely to see an acceleration in the pace of the recovery, the Fed's attention will also have to shift and pay closer to attention to these financial stability concerns," said Gregory Daco, chief U.S. economist with Oxford Economics. So far, the factors slowing access to vaccines seem to be keeping the lid on economic growth and investment but stronger efforts to control the virus are possible during the winter. Clearly, these developments are vitally important to producers and should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday December 31, 2020 |
Dietary Guidelines Flat on Consuming Sugars, Alcohol New Dietary Guidelines for Americans, 2020-2025, was released by USDA and the Department of Health and Human Services (HHS) Tuesday. The guidelines now include recommended dietary patterns for infants and toddlers. The agencies said the new guidelines were "informed by the scientific report developed by the Dietary Guidelines Advisory Committee" along with public input and that from other government agencies. The recommendations "look similar" to prior guidelines, the agencies noted, and despite a general recommendation that adults limit added sugar and alcoholic beverage intake, the guidelines sidestepped making any specifics on those two items. The agencies said evidence presented to the dietary review committee lacked "a preponderance of evidence" that would support specific numbers on alcohol or added sugar, "as required by law." As for red meat and processed foods, the guidelines also don't delve significantly into those areas. They do recommend replacing processed or high-fat meats with seafood or beans, peas and lentils to meet protein recommendations. The majority of meat and poultry a person consumes should be fresh, frozen or canned, and in lean forms, according to the guidelines. They suggest items like chicken breast or ground turkey, versus processed meats like ham or other deli meat. The U.S. Cattlemen's Association tweeted that the guidelines gave scant mention of beef. "In the 164-page 2020 Dietary Guidelines for Americans, 'Beef' is mentioned only five times; 'Meat' is mentioned 87 times; 'Protein' can be found 166 times." But the National Cattlemen's Beef Association (NCBA) declared the new guidelines recognize the role that lean beef can play in a healthy diet. "Beef is one of Americans' favorite foods, and science consistently shows lean beef can be the cornerstone in a variety of healthy diets," said NCBA President Marty Smith. The group pointed out beef is a source of the nutrient-rich foods recommended in the guidelines. The mixed reactions to the guidelines are not surprising as some in the food industry are complaining they do not go far enough in recommending dietary changes, and that the agencies set the scientific agenda for the guidelines, not the Dietary Guidelines Advisory Committee.
| Rural Advocate News | Thursday December 31, 2020 |
US Blocks Palm Oil From a Second Malaysia Plantation Due to Human Rights Abuses The U.S. Customs and Border Patrol (CBP) agency has issued another withhold release order relative to imports of Malaysian palm oil. The Dec. 28 order covers palm oil and palm oil products produced by the Sime Darby Plantation Berhad, due to findings of forced labor abuses. Sime Darby claims to produce 15% of Malaysia's palm oil, CBP said. "Palm oil is an ingredient in a lot of products that American consumers buy and use. And I think it's important for manufacturers and importers to be aware of where they're at higher risk of forced labor, and to demand that their suppliers are adhering to protecting human rights of their workers," said Ana Hinojosa, executive director of CBP's Trade Remedy Law Enforcement Directorate. CBP in September issued a withhold release order for imports of palm oil and palm oil products from FGV Holdings Berhad and its subsidiaries.
| Rural Advocate News | Thursday December 31, 2020 |
Thursday Watch List Markets Even though Thursday is New Year's Eve, much of the day will be typical. USDA's weekly export sales report is due out at 7:30 a.m. CST, joined by weekly U.S. jobless claims and an update of the U.S. Drought Monitor. The U.S. Energy Department reports on natural gas storage at 9:30 a.m. U.S. grain and livestock futures close at their normal times Thursday and will resume trading Sunday evening at 7 p.m. CST. Weather The secondary system to this week's storm developing over Texas on Thursday will move northeast through the Midwest on Friday. Another round of freezing rain and snow will occur to the north and west of the storm track with significant impacts to transportation and livestock. A boost in soil moisture is also anticipated for the Southern Plains to Midwest and points south and east.
| Rural Advocate News | Wednesday December 30, 2020 |
Grain Prices Should Improve in 2021 Global grain stocks will likely be about 1.5 percent higher than last year, reversing the downward trend over the prior few years. Despite the rise in global supplies, USDA forecasts higher corn, wheat, and barley prices than in the 2019-2020 marketing year. The average corn price is projected at four dollars a bushel, compared to $3.85 the prior year. The average wheat price is forecast at $4.80 a bushel, up from $4.60 in the previous marketing year. The average barley price is projected to be $4.75 a bushel, up five cents a bushel from last year. Feed, food, and export markets for corn are all promising for 2021. U.S. corn exports were up 49 percent in 2020 to 67.3 million metric tons, a huge boon to marketers and growers. On the corn import side, demand by the top seven importers was up nine percent this year, compared to a decline in 2019. Imports of corn jumped by 71 percent, which the Capital Press article says, “Definitely tells the story.” China also played a big role in wheat markets, with their imports up 48.7 percent. Demand for wheat by the five biggest importers was up five percent this year, compared to a two percent increase in 2019. ********************************************************************************************** Court Rejects Prop 12 Challenge in California The North American Meat Institute’s challenge to California’s Prop 12 is unsuccessful once again. The U.S. Court of Appeals in the Ninth Circuit rejected the institute’s challenge to the California 2018 ballot initiative that imposes new standards for animal housing. The court decision confirms an initial judgment in October. California voters approved the Prevention of Cruelty to Farm Animals Act with 63 percent of the vote. The law creates minimum requirements to provide more space for veal calves, breeding pigs, and egg-laying hens. By 2020, the law requires farmers to give hens at least one foot of floor space and says farmers have to eliminate cages by 2022. Farmers must now give veal calves at least 43 square feet, and sows get 24 feet of room. Court challenges by the Meat Institute and other groups have centered around the fact that the law applies to out-of-state producers of meat and eggs who want to sell products in California. Both the federal Department of Justice and 20 states joined the Meat Institute’s challenge, arguing that the law will contribute to higher food prices for consumers. ********************************************************************************************** New Five-Year Dietary Guidelines Released The USDA and the Health and Human Service Department released the 2020 edition of the Dietary Guidelines for Americans. The Hagstrom Report says the guidelines will be in place for five years. Ag Secretary Sonny Perdue says, “The theme of the guidelines is ‘Make Every Bite Count.’” In a news release, the two agencies say they didn’t deal with the most controversial recommendations from the Dietary Guidelines Advisory Committee, which was a specific limit on alcoholic beverages for men and added sugar intake. The release says, “Steeped in scientific evidence, the key recommendations look similar to those of the past and address two topics that garnered much attention throughout the development of the guidelines – added sugars and alcoholic beverages.” Tom Stenzel, CEO of United Fresh, says, “Today’s reality of facing the COVID-19 pandemic brings greater urgency than ever before. No longer are we just thinking about poor diets leading to long-term chronic disease; now, we see clearly that healthy eating is a critical defense against communicable diseases such as coronavirus.” He says the Dietary Guidelines mostly repeat what we already know about healthy eating. *****************************************t***************************************************** Corn Export Inspections Rise While Soybeans and Wheat Drop Inspections of corn for export improved week-to-week, while soybeans and wheat assessments declined. The USDA says the government inspected 993,710 metric tons of corn for overseas delivery in the week ending on December 24. That’s up from the 770,000 metric tons assessed during the previous week and the 408,947 tons examined during the same week in 2019. Soybean inspections dropped to 1.45 million metric tons compared to 2.81 million tons the prior week. That’s better than the 991,801 tons inspected during the same week in 2019. Wheat inspections for offshore delivery also dropped, falling to 303,809 metric tons compared to more than 392,000 tons the prior week. It’s also below the 312,316 metric tons inspected last year at the same time. Since the start of the marketing year on September 1, the government inspected 13.7 million metric tons of corn for export. That’s well above the 8.05 million tons assessed during the same time in 2019. Soybean inspections since the first of September totaled 36.5 million metric tons, up from the 20.8 million tons examined during the same week last year. ************************************************************************************ Cattle Documentary Series Begins in January A five-part mini-documentary series on raising cattle in America begins on Sunday, January third, and a new episode will debut every Sunday night in January. The series is called “A Rare Breed: Legacies of Excellence,” and it will launch on the Certified Angus Beef Brand Cattlemen Connection YouTube channel. The new segments premiere at 6 p.m. central time on Sunday nights. Interested people can follow along as the short videos introduce registered cattle breeders, commercial cattlemen, and cattle feeders from Oregon to Texas. It’s a chance to glimpse a little of their family life and cattle philosophy, as well as get new ideas for your operations. “As we visit with some good cattlemen and women across the country, we often think ‘I wish everyone could see this or hear that,’” says Miranda Reiman, director of producer communications for the Brand. “We get to know their history, their cattle, and their drive, and we hope others will find them to be as entertaining and inspiring as we did.” To watch the series, people can follow the CAB Cattlemen Connection channels on Facebook, Instagram, or YouTube, or go to www.CABcattle.com. Families from Kansas, Idaho, Texas, Nebraska, and Oregon make up the January lineup. ********************************************************************************************** Brazil Crop Regions Remaining Dry into Early January Southern Brazil saw some moisture over the Christmas weekend, but drier weather is returning to the region as 2020 winds down. An Agriculture Dot Com article says the drier-than-normal conditions will stretch into Uruguay and eastern Argentina through January 3. Expected weather concerns will likely continue to put upward pressure on corn and soybean prices. A strong La Nina will remain in place and will continue in the Southern Hemisphere through next summer. During those La Nina events, the Brazilian monsoon season tends to be delayed, which can lead to suboptimal soil moisture for the country’s more important crop-growing regions. The wetter weather appears to be delayed so far. However, the influence of La Nina often decreases during the month of January as smaller-scale atmospheric processes increase their influence over the precipitation patterns in Brazil. That could lead to an increase in moisture heading into the late stages of January.
| Rural Advocate News | Wednesday December 30, 2020 |
Washington Insider Cleaner Energy Growth Politico is reporting this week that president-elect Joe Biden will enter the White House next month with a "shift already underway that's likely to generate momentum for his plan to start to wean the country off fossil fuels." "The U.S. for four years attempted to go in the opposite direction," said Mark Jones, a political science fellow at Rice University in Houston. "Where we find ourselves in 2021, is a much more stringent and demanding request for addressing climate change. Everyone views the future as renewables, not oil and natural gas." The renewable energy sector has been cheering this week about the clean energy incentives included in the omnibus Congress passed. And it's even more optimistic about the prospects under a Biden administration, given Biden's plans for a $2 trillion effort to put the country on a path toward eliminating greenhouse gases from the power grid by 2035 and for the overall economy by 2050. "The realization -- the market's realization, the financial community's realization and the customer's realization -- that we are moving toward the clean energy economy has already happened," said Abigail Ross Hopper, CEO of the Solar Energy Industries Association, a solar trade group. "But the pace of that transition is still what's up for grabs." Biden is expected to speed the adoption of electric vehicles and boost power line transmission networks that will open up new opportunities for renewable power generators, Politico said. He's pledged to invest $400 billion in clean energy development and research over 10 years and work with states to deploy more than 500,000 new public electric vehicle charging spots by the end of 2030. Renewables are now on track to surpass coal as the largest source of electricity in the world by 2025, according to the International Energy Agency. And in the U.S., the latest outlook from the Energy Department is bullish on wind and solar, which along with hydropower and other renewables will surpass 20 percent of U.S. electricity generation next year -- about the same level as coal or nuclear power. EIA is projecting the U.S. electric power sector will add a record 23 gigawatts of new wind capacity this year -- almost double the previous record -- while utility-scale solar capacity to rise by 12.8 GW in 2020, enough to power millions of homes. There also is bad news for fossil fuels. U.S. crude oil production, which climbed to a record at more than 13 million barrels a day before the pandemic sapped fuel demand has slipped to 11 million barrels a day. Natural gas production, which has doubled since the spread of fracking began in earnest in 2005, is expected to post a modest decline amid weak prices caused by a glut of supply. Those weak prices for natural gas and crude oil, which briefly turned negative as the pandemic took hold in April, have forced 45 oil and gas companies to file for bankruptcy through the first 11 months of 2020, Politico says. The outlook for coal is even worse. The energy source that produced more than half the U.S. electricity little more than a decade ago has seen its share of the power market drop by almost a quarter recently despite administration promises to revive the industry. Valuations for coal producers have declined sharply and the leading company, Peabody Energy, is struggling to avoid its second bankruptcy filing in five years. Still, renewable energy won't supplant fossil fuels anytime soon and renewables remain a small portion of the overall energy market even with the rapid growth, said Erik Olson, climate and energy analyst at the Breakthrough Institute. "You're really seeing right now the early wave of renewables starting to reshape the power sector," he said. The dramatic fall in fuel demand amid the COVID-19 pandemic accelerated the debt-laden oil and gas industry's need to shrink and companies like Exxon Mobil, which saw its market value cut by as much as half earlier this year, have been forced to lay off tens of thousands of employees and ramp down their spending as a bulwark against a flood of red ink. Now with a new White House promising to hand down stricter regulations on capturing the heat-trapping gas methane and a ban on new permits to drill on federal land, oil companies will either have to spend money to adapt or, in the case of smaller businesses that don't have the money or expertise to do so, to look for other options. Politico expects that the fossil fuel industry is preparing to "negotiate the edges off of Biden's plans or to start looking for ways to adapt to the new normal." Changes in systems as large as the energy sector tend to be slower than expected. These changes often include many trends, including those that are controversial and bitterly divisive with far-reaching implications. These are battles producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday December 30, 2020 |
CFAP 2 Payments at $12.96 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) effort now are at $12.96 billion as of Dec. 27. Within that amount are acreage-based payments at $6.16 billion, livestock payments at $3.39 billion, sales commodities at $2.19 billion, dairy at $1.17 billion, and eggs/broilers at $52.1 million. Iowa continues to lead all states at $1.15 billion, followed by California ($987.3 million), Nebraska ($838.5 million), Minnesota ($814.5 million), and Illinois ($789.0 million). Already attention is shifting to what is expected to be CFAP 3 as part of the latest COVID aid package
| Rural Advocate News | Wednesday December 30, 2020 |
Court Blocks H-2A Wage Changes, Freeze Labor and farmworker groups won an injunction blocking the Department of Labor from freezing H-2A guestworkers' adverse effect wage rates (AEWRs) for 2021 and 2022. U.S. District Judge Dale Drozd issued the injunction last week, saying the plaintiffs in the suit were likely to prevail on the merits of the underlying case. The United Farm Workers and the UFW Foundation contend DOL's rule runs afoul of multiple aspects of the Administrative Procedures Act, including notice and comment requirements. The DOL ruling would freeze H-2A wages at 2020 levels and then adjust future adverse effect rates based on the generic employment cost index rather than USDA's Farm Labor Survey. An earlier ruling by Drozd issued an injunction prohibiting USDA from cancelling the Farm Labor Survey, which it had moved to do after DOL gave notice of its H-2A wage rulemaking. The latest ruling blocked the wage freeze aspect of the DOL rule saying it is likely to depress farmworker wages and cause them irreparable harm. DOL's own estimates expected the rule to reduce wages paid to H-2A guestworkers by just shy of $200 million over the next two years had it been allowed to take effect. DOL is now required to publish 2021 adverse wage rates, which are expected sometime after USDA publishes updated survey data on Feb. 11 -- a delay from its typical release date of Nov. 30 due of the logistics involved in resuming the report. The judge gave DOL and plaintiffs 14 days to submit proposed orders laying out deadlines for setting the 2021 AEWRs.
| Rural Advocate News | Wednesday December 30, 2020 |
Wednesday Watch List Markets Wednesday has a light report schedule with November pending U.S. home sales due out at 9 a.m. CST, followed by the U.S. Energy Department's weekly report of energy inventories at 9:30 a.m. Traders remain interested in South America's weather and any export news that emerges. Weather A system will continue to move eastward across the northern Midwest Wednesday. The front to the system will continue to be active, producing showers from the Ohio Valley southwest to Texas as we await the formation of a new low-pressure center in Texas on Thursday. Moderate precipitation has and will continue to fill soils and provide protective snow cover in the winter wheat areas. Travel and transport hazards and impacts to feedlots are also noted.
| Rural Advocate News | Tuesday December 29, 2020 |
Trump Signs Appropriations/COVID Relief Bill After threatening to veto it earlier, President Trump signed the combined fiscal year 2021 omnibus appropriations and COVID-19 relief bill on Sunday. Pro Farmer says Trump’s signature means more aid is coming to farmers, and a 15 percent increase in Supplemental Nutrition Assistance benefits will take place over the next sixth months. The signing also eliminates a possible government shutdown. Trump is demanding changes in the bill, but Congress is not required to follow that direction. “I will sign the omnibus and COVID package with a strong message that makes clear to Congress that wasteful items need to get removed,” Trump says in a statement. “I will send back a redlined version, item by item, accompanied by the formal rescission request to Congress insisting that those funds get removed from the bill.” The bill includes extensions for tax incentives for biofuels and renewable biofuels, benefits for rural healthcare providers, and a two-year water resources authorization bill that may help speed up waterway construction projects. The bill also provides new help for contract livestock growers, hog producers who had to depopulate herds, cotton processors, biofuel producers, and the dairy industry. ********************************************************************************************** Federal Judge Rejects USDA Changes to H-2A Program A federal court in California issued a preliminary injunction against the Labor Department’s decision to freeze farm workers’ wages for those that use the H-2A Guestworker Program. Fruit and Nut Grower News says the freeze would effectively lower the wages of several hundred thousand guest farm workers employed by U.S. farmers. A preliminary injunction was issued in federal court in Fresno, California, in a lawsuit filed by the United Farm Workers and the UFW Foundation, with both groups represented by Farm worker Justice. The new regulation was to take effect on December 21 and regulate wages beginning in January. A Farmworker news release says the Labor Department estimated that H-2A guest workers would lose wages totaling $57 million in 2021, $139 million in 2022, and an average of $170 million annually over ten years. The DOL says that U.S. farm workers not under the H-2A program will also lose wages. The H-2A program has been expanding in recent years. The Labor Department approved more than 275,000 visas under the program in the fiscal year 2020. The State Department also issued more than 204,000 H-2A visas in 2019. ********************************************************************************************** Meat and Poultry Worker COVID Infection Rates Lower than General Population A new analysis of independent data for November shows that reported new COVID-19 infection rates among meat and poultry workers were more than eight times lower than the general population. Data from the Food and Environment Reporting Network says the meat and poultry sector reported an average of 5.57 new cases per 10,000 workers daily in November. Infection rates among meat and poultry workers have declined steeply in the last six months while surging across the U.S. The New York Times reports that during the same period, the average new case rate for the U.S. population was 45.36 cases per 100,000 people per day. The analysis follows a Centers for Disease Control decision this month to prioritize vaccinating frontline meat and poultry workers. Meat Institute President and CEO Julie Anna Potts says, “This new analysis is encouraging evidence that the more than $1.5 billion in comprehensive protections implemented since the spring have reversed the pandemic’s impact on the selfless men and women who keep America’s refrigerators full and the farm economy working throughout COVID-19.” ********************************************************************************************** Ag Export Destinations Shift Over Previous 25 Years The U.S. is the world’s second-largest agricultural trader after the European Union. U.S. agricultural exports grew significantly over the last 25 years, from $46.1 billion in 1994 to $126.7 billion in 2019. It’s no surprise that Canada and Mexico are two of the top destinations. The elimination of agricultural trade barriers through the 1994 North American Free Trade Agreement, which was then superseded by the U.S.-Mexico- Canada Agreement in July 2020, almost quadrupled exports by value to Canada and Mexico. Coinciding policy developments, rising household incomes, and changing trade policies in developing East and Southeast Asia are driving U.S. export growth, especially for China. The Chinese share of U.S. agricultural exports more than quadrupled from three percent during 1994-2000 to 14 percent between 2010 and 2019. Meanwhile, there’s been a sharp decline in the share of American exports going to Europe and higher-income countries in East Asia, such as Japan. Of the $136.7 billion in 2019 exports, 29 percent went to East Asia and 29 percent to Mexico and Canada. *****************************************t***************************************************** Groups Praise WRDA Passage in COVID Relief Bill The fiscal year appropriations bill that President Trump signed includes a reauthorization of the Water Resources Development Act. The Hagstrom Report says It funds the Army Corps of Engineers civil works program that builds and maintains the ports and inland waterways that are vital to the agriculture industry. Senator Chuck Grassley of Iowa says, “it’s important that Congress pass a Water Resources Development Act every two years. It helps communities move forward with projects critical for things like flood control, navigation, ports, locks and dams, and more.” Bobby Frederick of the National Grain and Feed Association says, “We view WRDA as an opportunity to enhance U.S. inland waterways and port infrastructure.” Waterways Council President and CEO Tracy Zea says, “In a difficult COVID-19 environment, passing WRDA is a significant achievement for modernizing the inland waterway systems, potentially providing more than $1 billion in additional construction funds over the next ten years.” Corn Refiners Association President John Bode says, “WRDA is a signature achievement in maintaining global competitiveness for American agricultural exports, and the millions of American jobs they support.” ************************************************************************************ EU Approves Post-Brexit Deal European Union ambassadors approved a provisional application of the E.U.-United Kingdom future relations agreement, paving the way for implementing the deal on January 1. A spokesperson for the German Presidency of the Council of the E.U. tweeted that, “E.U. Ambassadors have unanimously approved the provisional application of the E.U.-U.K. Trade and Cooperation Agreement as of January 1, 2021.” Politico says while the go-ahead from the ambassadors is an important step, official approval will likely come on Tuesday (today). Some countries like Sweden still need to consult their national parliament. Final adoption of the trade text will be done via a written procedure, which means that countries send a note of consent to the E.U. Council. Brussels and London clinched the U.K.-E.U. trade deal on December 24. The European Commission presented the treaty as an E.U.-only agreement with a limited provisional application, which means the E.U. can provisionally implement the agreement with the approval of E.U. countries, but without the consent of the European Parliament. The British Parliament has been called back for December 30 to ratify the deal, which is highly likely to pass.
| Rural Advocate News | Tuesday December 29, 2020 |
Tuesday Watch List Markets Traders continue to monitor the latest weather forecasts for South America and pay attention to any export news that develops. There are no official reports due out Tuesday. Weather A storm system will continue to bring moderate to locally heavy precipitation to the Plains and Midwest on Tuesday. Moderate snow is expected in a widespread area from Nebraska to Wisconsin and points northward while a zone of freezing rain is expected over Kansas and southeast Nebraska to northern Illinois. Livestock stress and transport hazards are the main threats with this system.
| Rural Advocate News | Tuesday December 29, 2020 |
Washington Insider: Food Safety News on Vilsack Nomination In a substantially supportive commentary last week, Food Safety News -- which very closely follows safety concerns at USDA -- wrote that President-elect Biden's selection of Tom Vilsack brings focus on a candidate with a proven food safety record "filled with accomplishments in spite of a ding or two." The report noted that Vilsack already is one of the longest serving cabinet members to work as Secretary of Agriculture, so the request that he serve again in that capacity opens the former USDA boss to considerable scrutiny, including his food safety record. Food safety is one of USDA's critical missions, FSN notes with its Food Safety and Inspection Service charged with providing inspections for meat and poultry processing along with production oversight for some egg and some fish products. The agency has a budget of about $1 billion a year for food safety that covers about 10,000 employees, most assigned to inspect private establishments subject to federal regulation. Before his first appointment as secretary of agriculture, Vilsack was the governor of Iowa, an office which included food safety responsibilities such as restaurant inspections. FSN is moderately critical of one Vilsack decision to allow Taylor's restaurant in Marshalltown, IA, to use a "cooking vessel" to produce Maid-Rite "loose meat" sandwiches which have been an Iowa favorite since the 1920s. The original cooking process used a vessel with a design flaw that allowed some cross-contamination. When Vilsack left the governor's office, the state withdrew the waiver and Taylor's Maid-Rite received red violations on its post-Vilsack inspections. It took the state several years to resolve that food safety situation, FSN says. However, FSN gave Vilsack mostly high marks on other decisions. For example, he helped select a USDA Under Secretary for Food Safety -- the highest-level food safety job in the federal government. Dr. Elisabeth Hagen was confirmed in that position by the U.S. Senate in August 2010 and accounted for significant accomplishments -- Vilsack certainly shares in that credit, FSN says. Most notable was Hagen's work to bring six additional strains of E. coli under USDA regulation and to require mechanically tenderized beef labeling. She also updated Salmonella performance standards for poultry and put forward the first-ever standard for Campylobacter. FSN noted that when Hagen left USDA for the private sector in December 2013, the administration did not formalize a replacement. Brian Ronholm, deputy undersecretary under Hagan, continued in that role and FSIS Administrator Al Almanza was named as a deputy undersecretary. At the time, some top FSIS managers criticized the decision not to provide a "confirmed Under Secretary for Food Safety, FSN says. But it also notes that "Vilsack was credited as being fully engaged in food safety and that he provided critical leadership for significant food safety updates." Updated included tighter regulatory requirements and enhanced consumer engagement about safe food handling practices. FSN says there also were operational changes that helped keep unsafe food out of commerce, including the implementation of advanced testing methods and a greater focus on mislabeling. In 2016, USDA issued the first-ever pathogen reduction standards for poultry parts, including chicken breasts and wings. While performance standards for whole chickens had been in place since 1996, these standards did not address the higher Salmonella levels that can occur as poultry is processed into parts commonly sold separately -- which represents 80 percent of the chicken available for purchase. Establishing this new standard for chicken parts was credited with reducing exposure to Salmonella and Campylobacter and lowering the potential for foodborne illness in the United States. In 2012, USDA required that meat and poultry companies hold all products undergoing laboratory analysis until microbial and chemical tests for harmful hazards are completed. Implementing this test and hold policy has prevented a number of recalls and reduced significantly consumer exposure to unsafe meat products. Vilsack's food safety record also includes upgraded technology and internal tracking and reporting systems, strengthening collaborations between agencies, and introducing consumer-facing tools to help protect families from foodborne illness. "People should not confuse his understated approach as having a lack of knowledge or compassion related to food safety issued," says one national food safety expert. "His previous experience at USDA will give him a significant head start and allow him to apply lessons learned from his previous tenure toward resolving critical pending issues, including the line speed." Vilsack is well regarded across much of agriculture but is less popular among several groups with increasingly important social issues -- so, there likely will be at least some excitement at his confirmation hearings -- which producers should watch closely, Washington Insider believes.
| Rural Advocate News | Tuesday December 29, 2020 |
Northeast, Midwest Would Lose Seats in Latest Census Estimate New York would lose two congressional seats, according to population estimates released recently by the Census Bureau, making the state the biggest loser in the next apportionment if the official count comes out the same. Using the estimate to apportion the 435 seats in the House, seven states would gain congressional seats while nine states would lose them. California would lose a congressional seat for the first time in its history, according to the estimate. The other states losing seats: Rhode Island, New York, Pennsylvania, West Virginia, Ohio, Michigan, Illinois and Minnesota. Texas would gain three seats and Florida two. North Carolina, Colorado, Montana, Arizona and Oregon would also gain seats. Alabama would have the slimmest margin of any state, holding onto its 7th congressional seat by about 6,000 people. Apportionment under the same estimate produced last year had Alabama losing that seat.
| Rural Advocate News | Tuesday December 29, 2020 |
Biden Team Reaches Out to Biofuels Interests The transition team for the incoming Biden administration has held calls with biofuel groups, discussing issues such as a low-carbon climate vision, according to Reuters. The conversations with biofuel trade groups, biofuels company POET, ag groups and Biden's choice to head EPA, Michael Regan, have centered mostly on boosting access to fuels with higher ethanol blends. The discussions also included the testy issue of compliance with the Renewable Fuel Standard (RFS). Biofuel interests have expressed optimism at the incoming Biden administration in the wake of the big increase in exemptions granted by the Trump administration for small refiners relative to their RFS obligations. However, court actions have limited those exemptions and are expected to further temper them in the future.
| Rural Advocate News | Monday December 28, 2020 |
China Corn Imports Hit All-Time High China imported a record amount of corn in November, giving rise to optimism that prices may be getting into their longest rally since 1988. Pro Farmer says China bought 12 times more corn last month than in 2019. Customs data shows that for the first 11 months of 2020, imports more than doubled to nine million tons, passing China’s World Trade Organization commitments of 7.2 million tons for the first time in history. The surge in corn imports pushed the overall Chinese grain prices higher. An official with the Chinese ag ministry says the Southeast Asian country has boosted imports of other feed grains like barley and DDGs to help narrow the supply gap. Higher prices are likely to give farmers the incentive to increase their corn planting next year, ensuring farmers have basic self-sufficiency. China imported 1.3 million tons of corn in November, up 1,130 percent from November of 2019, while imports for the year totaled 9.04 million tons through November, up 122.7 percent from the same time last year. ********************************************************************************************** Taiwan Approves U.S. Pork Imports with Ractopamine Taiwan’s parliament approved a measure that will allow U.S. pork imports containing ractopamine, a leanness-enhancing additive. Reuters says the approval came despite objections from KMT, the main opposition party, which says it creates a health risk for the Taiwanese people. The country’s president decided in August that Taiwan would allow imports of U.S. pork with the additive, which is banned in the European Union and China, and that decision stirred up Taiwan politics. The KMT party has staged loud protests against the move, even throwing pig entrails in parliament last month to protest the approval. The government says no one in the country will be forced to eat the pork, and the move means Taiwan will bring its import policy in line with international norms. Major Taiwan companies are already saying they won’t sell pork made with ractopamine. Taiwan officials are hopeful that easing barriers to U.S. pork imports will make it easier to establish a free trade deal with America. Pork is Taiwan’s protein of choice, with the average per capita consumption around 40 kilograms. ********************************************************************************************** Holiday Ham Supplies Stretching a Bit Thin It’s the time of year when people buy a lot of holiday hams, and some pork products are getting stretched thinner. The Wall Street Journal says it’s due in part to COVID-19 precautions challenging meatpacker workforces to keep up with demand. Some meat suppliers are placing limits on how much pork supermarkets can order, leading to less variety and fewer pork promotions in the days ahead of Christmas. COVID has led to some of the larger processors like Smithfield Foods and JBS providing paid leave for workers who are considered higher risk because of pre-existing conditions or their older age demographic. Some meat companies have hired extra workers to help offset the absences. In another concession to COVID-19 worries, some of the meat plants are spacing workers farther apart, which has slowed the processing speeds in their operations. Grocery companies report that bacon, dinner sausages, and lunch meat have also been in tighter supply during the holidays. ********************************************************************************************** U.S. Hog Inventory Drops One Percent As of December 1, U.S. farms contained 77.5 million hogs and pigs, down one percent from December of 2019, and down one percent from September of 2020. Those numbers were published last week by the USDA’s National Agricultural Statistics Service. Of the 77.5 million hogs and pigs, 71.2 million were market hogs, while 6.28 million were kept for breeding. Between September and November of this year, 35 million pigs were weaned on U.S. Farms, down one percent from the same period last year, while U.S. hog producers weaned an average of 11.05 pigs per litter. Hog producers intend to have 3.12 million sows farrow between December of 2020 and February 2021, and 3.12 million sows farrow between March and May of next year. Iowa producers held the largest inventory among the states at 24.8 million head. Minnesota was next with 9.4 million head, and North Carolina finished third with nine million head. To get the most accurate measurement possible of the U.S. swine industry, NASS surveyed more than 6,000 producers across the nation through the first half of December. *****************************************t***************************************************** NPPC: Anti-Meat Group Shows “True Colors” Last week, the head of an anti-meat extremist group posed as the CEO of a major pork producer during a national television interview. The National Pork Producers Council says the conversation contained “outrageous and false claims” about the U.S. pork industry and the challenges it faced during COVID-19. NPPC President Howard “A.V.” Roth (Rowth) had a sharp response to the interview. “Taking advantage of this black-swan event to drive an anti-meat, anti-livestock agriculture agenda is reprehensible,” Roth says. “These radical extremist groups who typically work shrouded in secrecy and false identities, frequently by breaking the law, are only able to propagate their false narrative by fooling journalists and posing as credible sources.” Despite the enormous challenges of 2020, Roth says hundreds of thousands of committed farmers and others employed in pork production remain dedicated to keeping Americans and consumers around the world supplied with affordable, nutritious protein. “COVID-19 has caused record numbers of Americans to be food insecure,” he adds. “U.S. pork producers are proud to help feed those in need, and these extremist groups should be ashamed of their stunts. Apparently, there’s no low point for their actions.” ************************************************************************************ Popular Organic Weed Killer Under Investigation Regulators in Washington, Oregon, and California issued “stop-use” orders for a popular herbicide that’s been used on a lot of organic crops. Questions are arising about whether or not Agro Gold WS contains synthetic herbicides like Glyphosate or Diquat. As more questions come up about the product, the state of Idaho is also investigating, and an Environmental Protection Agency spokesperson says the agency is “looking at it more closely.” The product isn’t labeled as a conventional herbicide, which could have endangered farmworkers. They may not have worn enough protective gear or taken enough precautions when mixing or applying the chemicals because they didn’t know what might actually be in the product. Glyphosate is the key ingredient in Roundup. The Florida-based company Agro Research International says it doesn’t add chemicals to the organic product. Their CEO tells the Northwest News Network that he’s fighting back against the investigations. He says the co-pack of two products, Agro Gold and Weed Slayer, has been working well for many years, and they “don’t use chemicals.” He says he’s not too worried about the ongoing investigations, noting that, “If an intruder comes to your house and you have the ammunition to defend yourself, you shouldn’t worry.”
| Rural Advocate News | Monday December 28, 2020 |
Washington Insider - Implications of Brexit The New York Times is reporting this week that "it took 11 grueling months for negotiators from Britain and the European Union to hammer out the post-Brexit trade deal. But in many respects, the deal is already four and a half years out of date." The world has changed radically since June 2016, when a narrow majority of people in Britain voted to leave the EU, the Times says. The buccaneers of Brexit promised to create a "Global Britain." They envisioned an agile, independent Britain, one free to develop profitable, next-generation industries such as artificial intelligence and cut its own trade deals with the United States, China and others. It was an alluring sales pitch. That was before the anti-immigrant battles and the anti-globalist-fueled rise of President Trump and other populist leaders who erected barriers to trade. It also was before the coronavirus pandemic exposed the vulnerabilities of far-flung supply chains fueling calls to bring strategic industries back home and throwing globalism into retreat. In the anxious dawn of 2021, the buccaneers seem out of fashion, the Times says. The world is now dominated by three gargantuan economic blocs—the United States, China and the European Union. Britain has finalized its divorce from one of them, leaving it isolated at a time when the path forward seems more perilous than it once did. "The whole 'Global Britain' model doesn't reflect the more protectionist, nationalistic world we're living in," said Thomas Wright, the director of the Center on the United States and Europe at the Brookings Institution. "Becoming a global free trader in 2016 is a bit like turning into a communist in 1989. It's bad timing." As Prime Minister Boris Johnson leads Britain into a post-Brexit future, he also risks being out of step politically. The Brexit agreement with the EU comes at the very moment that President-elect Joseph Biden is replacing Trump's "America First" credo with a message of mending alliances and collaborating to tackle issues such as global health and climate change. While the Brexit deal averts tariffs and quotas on goods crossing the English Channel, it is at heart about disentangling neighbors who had become deeply integrated over four decades. That estrangement, analysts say, is bound to weaken ties between the two sides in other areas, such as security and diplomacy. "Biden wants to see alliances and multilateralism and cooperation and Brexit runs completely against that," said Mujtaba Rahman, an analyst at the Eurasia Group. Trump cheered Britain's drive to sever itself from the European Union and promised to negotiate a trade agreement with Johnson, whom he cultivated personally. But Biden opposed Brexit and has ruled out negotiating new trade agreements until the United States improves its own competitive position. That nullifies one of the prime selling points of Brexit. Johnson has pivoted by highlighting other ways that Britain can work with the United States such as reinforcing NATO and playing host at a UN climate summit next year. Britain has also promoted itself as a champion of democratic values in places like Hong Kong, but in a less hospitable world, it may not find many allies for that kind of work. "Who are the obvious partners for them?" Wright said. "Four years ago, they could have said Brazil, but Brazil is now run by a populist." There also are limits to how muscular a partner Britain can be in the confrontation with autocratic states like China and Russia. Britain once hoped its free-agent status would allow a thriving commercial relationship with Beijing. But under pressure from Trump on the role of the Chinese telecommunications giant Huawei in 5G networks, Britain has largely abandoned its cultivation of China, falling in line with the United States' more antagonistic position. The pandemic has forced Brussels to reconsider policies it once shunned, the Times says. Liberating itself from the constraints of Brussels had been one of the biggest attractions of Brexit. Instead, Britain faces a much larger competitor that seems bent, like Britain itself, on transforming its economies with digital and "green" technology -- and more open to using state aid to do so. Another irony of Brexit is that Europe, alienated by Trump's unilateral policies, has begun echoing some of the language used by Brexiteers in 2016. President Emmanuel Macron of France and others have spoken of the need for "European sovereignty" in the face of a less reliable United States. Mr. Johnson made reclaiming British sovereignty the leitmotif of his negotiations with Brussels. Britain's independence also allows it the chance to be experimental in its relations with other countries. Mr. Wright, for example, said the Biden administration might be interested in negotiating a different kind of economic understanding with Britain than an old-fashioned free trade agreement. Nevertheless, "the world of June 2016 is not the world of today," Wright said. "They know that as well, deep down." Clearly, the evolving Biden policies for trade will be complex and important and should be watched closely by producers as they evolve, Washington Insider believes.
| Rural Advocate News | Monday December 28, 2020 |
Ham, Some Pork Product Supplies Being Stretched By COVID Supplies of holiday hams and some pork products are being stretched as COVID-19 precautions challenge meatpackers' workforces, according to a Wall Street Journal report. Some meat suppliers are placing limits on how much pork supermarkets can order, grocers said, leading to less variety and fewer pork promotions ahead of Christmas. The pandemic has prompted some major processors, including Smithfield Foods Inc. and JBS USA Holdings, to provide paid leave for workers considered higher risk due to their older age or pre-existing conditions, the companies have said. Some meat companies have made additional hires to offset higher-risk workers' absences. To space workers farther apart, some meat plants have slowed processing speeds. Bacon, dinner sausages and lunch meat have also been in tight supply, grocery companies said.
| Rural Advocate News | Monday December 28, 2020 |
Taiwan Clears US Pork Produced With Ractopamine Taiwan's parliament approved the import of pork from hogs produced using the feed additive ractopamine, despite efforts to halt the action by the main opposition party, the Kuomintang (KMT). KMT lawmakers denounced the action, declaring that U.S. pork produced with the feed additive was "poison." The Taiwanese government has taken the position that no one will be forced to eat the pork and the action will bring Taiwan in line with international norms. There are a mix of countries that allow and those that ban imports of pork from hogs raised on ractopamine. Premier Su Tseng-chang told reporters the government would protect the health of citizens. The action is also seen as an effort by Taiwan to secure a free trade deal with the U.S. which has complained about Taiwan's ban on pork produced with ractopamine.
| Rural Advocate News | Monday December 28, 2020 |
Monday Watch List Markets There are no official economic reports for Monday December 28. Traders will keep an eye on the latest weather forecasts, especially for South America and any export news that develops, especially with China. U.S. grain futures resume trading Sunday evening at 7 p.m. CST, Dec. 27. Weather A system developing in the Four Corners region will start to produce showers into the central and Southern Plains later in the day, including snow from Colorado to Nebraska which could be moderate as we head into Tuesday. Moderate rain showers will develop further south. All precipitation will boost soil moisture, which remains below normal for much of the region.
| Rural Advocate News | Thursday December 24, 2020 |
Trump May Not Sign the Stimulus Bill Tuesday night, President Trump asked Congress to make some changes to the newly passed $900 billion stimulus bill passed by Congress on Monday. The Washington Post says he describes it as “a disgrace” and suggested he wouldn’t immediately sign off on it without some changes. In a Twitter video, the president calls on Congress to increase the “ridiculously-low” $600 stimulus checks to $2,000. He also outlines a list of provisions in the overall package that he calls “wasteful spending and much more.” He’s asking Congress to “send me a suitable bill, or else the next administration will have to deliver a COVID relief package, and maybe that administration will be me.” If he doesn’t sign the bill, the government shuts down on December 29, the aid money is frozen, and even the two Senate seats up for grabs in Georgia could be upended. House Speaker Nancy Pelosi says that Democrats will move quickly to advance the $2,000 stimulus checks. Senate Minority Leader Chuck Schumer says he supports the idea of larger stimulus checks and blamed Senate Republicans for preventing them from being included in the bill. ********************************************************************************************** Poultry Industry Facing a Tough Year in 2021 Like many sectors of agriculture in 2020, COVID-19 caused a big disruption to the poultry industry. Unfortunately, RaboResearch says the global poultry industry will face even more challenges in 2021, especially in the first half of the year. That’s according to new data in the RaboResearch 2021 Poultry Quarterly. COVID-19 will place continuing pressure on foodservice and trade, and the consequent slow economic growth will lead to more price-driven market conditions. As those market fundamentals appear challenging for 2021, a RaboResearch report says the poultry industry should prepare for a tough year. “Looking forward, we see four main challenges for the global poultry industry,” says Nan-Dirk Mulder, senior animal protein analyst with Rabobank and the lead author of the report. “The challenges include ongoing impacts of COVID-19 on the markets, high and volatile feed prices, China’s African Swine Fever recovery, and the northern hemisphere avian influenza crisis.” Falling demand in China and Vietnam will push traders to find other markets and depress global markets during the first half of 2021. Better control of COVID-19 should lead to a gradual recovery of foodservice markets later next year. ********************************************************************************************** Grassley Wants Tax Cuts and Jobs Act Permanent December 22 was the third anniversary of President Trump signing the Tax Cuts and Job Act. Senate Finance Committee Chair Chuck Grassley is asking President-elect Joe Biden to commit to making permanent many of those tax provisions that helped create the strongest economy in generations and are helping to rebuild the economy while Americans get back to work after COVID-19. “President-elect Biden ran on rebuilding the nation’s economy that’s been devastated by COVID-19,” he says. “Families, small businesses, and the American economy can’t recover, rehire, or grow to their full potential with higher taxes on the horizon. It’s now Biden’s responsibility to make sure it doesn’t happen on his watch.” Grassley wants to see the lower, more affordable temporary tax rates become permanent in 2021. He says Congress just made permanent several temporary tax policies and provided certainty for businesses to grow and hire. “Many of the temporary provisions expire during the next administration,” Grassley adds. “Higher taxes would only make things worse. U.S. businesses of all sizes, including farms, should know they won’t face a historic tax hike, so they’ll have the certainty they need to rehire and reinvest in their workforce.” ********************************************************************************************** Commodity Classic is Coming Straight to the Farm in March Like a lot of other agricultural events, the Commodity Classic will be going virtual in 2021. Due to the restrictions brought on by COVID-19, America’s largest farmer-led, farmer-focused agricultural and educational experience will be coming right to farms across the country in a digital format March 2-5, 2021. Commodity Classic organizers say, “While we’re all disappointed that we won’t be together in San Antonio this year, the 2021 Special Edition will continue to provide the education and experiences you’ve come to expect from the Commodity Classic.” Those events include educational sessions, the top thought leaders in agriculture, new technology and innovations, online networking opportunities with fellow farmers, and much more. Interested people can keep up with updates regarding registration, the schedule, speakers, and educational sessions by signing up for email updates at www.commodityclassic.com. The Commodity Classic, established in 1996, is a joint presentation of the American Soybean Association, the National Corn Growers Association, National Sorghum Growers, and the Association of Equipment Manufacturers. The 2022 edition will move to New Orleans, Louisiana, March 10-12. ********************************************************************************************** IBM to Help USDA Modernize Conservation Program IBM says it’s one of the five businesses selected by the USDA’s Farm Production and Conservation Mission Area to provide support for USDA’s digital modernization efforts. Four other businesses were also selected to receive large business awards, with the combined worth of those five awards at $620 million paid out for work that’ll be completed over the next five years. More than 30 vendors competed for the five awards. IBM will help work with the Mission Area to help modernize legacy applications that support the conservation programs administered by the Natural Resources Conservation Service and the Farm Service Agency. “Technology has incredible potential to transform the way governments serve citizens and accomplish critical missions,” says Jay Bellissimo, General Manager of IBM’s U.S. Public Sector and Federal Market. “Our team is ready to modernize applications to help FPAC deliver modernized systems that assist the conservationists in helping farmers and ranchers reduce soil erosion, enhance water supplies, improve water quality, increase wildlife habitat, and reduce damage caused by natural disasters.” The award is a part of the more than 90-year working history between IBM and USDA. The two have worked on other projects with FPAC, as well as the forest service, the Food Safety and Inspection Service, and the Agricultural Marketing Service. *****************************************t***************************************************** John Deere, FFA Partner to Build Next Generation of Leadership For 77 years, John Deere and the National FFA Organization have worked to find the next generation of leaders and strengthen the agriculture industry. 2020 is a year that’s come with many challenges, but John Deere says its commitment to both FFA and agricultural education is stronger than ever. Building on a legacy of support, John Deere says it will donate one million dollars in 2021 to help support the National FFA Organization’s mission to make a positive difference in the lives of students by developing their potential for leadership, personal growth, and career success through agricultural education. “Throughout the years, John Deere has shown their continuing commitment to FFA and our goal of building the next generation of leaders,” says Molly Ball, President of the National FFA Foundation and the chief marketing officer for National FFA. “In today’s climate, every dollar is being stretched. The fact that they find value in our members and our commitment to students and educators speaks volumes.” Aaron Wetzel, John Deere’s Vice President of Production Systems, says, “We believe FFA is as important to the future of agriculture as any cutting-edge machine, technology, or service that we will deliver.”
| Rural Advocate News | Thursday December 24, 2020 |
Washington Insider: Sparks Over Ag The New York Times is reporting this week that the politics of U.S. agriculture are as complicated as ever — and that despite President-elect Joe Biden's victory, Democrats were again defeated resoundingly in rural America. This month, Biden nominated Tom Vilsack tapping him to reprise the role of agriculture secretary that he held for eight years in the Obama administration. But the pushback against Vilsack has been fierce, laying bare divisions within the Democratic Party and "resistance to corporate influence that is simmering among progressives," the Times said. If confirmed, Vilsack, a former Iowa governor, will retake the helm of the Agriculture Department at a time when America's farmers have been battered by trade wars and the effects of the coronavirus pandemic. He also faces challenges from progressive and environmental groups who warn that he is too friendly with big industrial agriculture businesses. Farm states have been a stronghold for Republicans over the past decade and — despite frustration by some over Trump trade policies — the president still dominated rural areas in 2020. (Editor's Note: Questions asked as part of the recent DTN Agriculture Confidence Index showed more than 60% of farmers voted for Trump, with another quarter of farmers surveyed choosing to not answer that question. Only 11.8% of those surveyed said they voted for Biden.) Eager to make inroads in rural America, some Democrats fear that Vilsack is not the ideal ambassador, especially since he recently earned $1 million a year as a lobbyist for the dairy industry. Environmental and agricultural policy groups see him as too cozy with "Big Ag," pointing to the rapid consolidation in the farm sector that occurred under his watch when companies such as Monsanto and Bayer merged. Food safety and labor advocates also criticize his decisions as secretary to allow significant increases in slaughter line speeds in poultry plants along with a revamp of the chicken inspection process to allow meatpacking employees to perform some duties previously carried out by government inspectors. Food and Water Watch, a consumer and environmental watchdog group, said it opposes Vilsack's nomination. Ken Cook, president of the Environmental Working Group, said "I think he'll fold under pressure from the ag lobby, the subsidy lobby and big agriculture." EWG is a nonpartisan organization that is critical of industrial agriculture. While many farm groups such as the National Farmers Union and Feeding America have expressed support for his nomination, some farmers are wary that the Biden administration could herald new and onerous regulations. Vilsack has faced criticism for the fading fortunes of Black farmers who have long complained of discrimination when it comes to land and credit access. Vilsack was at the center of a racial firestorm when in 2010 he hastily fired Shirley Sherrod, a Black USDA official, after a conservative blogger released a misleading video clip that appeared to show her admitting antipathy toward a white farmer. He later apologized and tried to rehire her. "Because of the experience of the pandemic, there are different expectations for the secretary of agriculture than there were during Vilsack's prior service," said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, which represents poultry workers at plants across the South. "There must be heightened priority given to the safety and needs of the workers who produce our food supply as well as all to those Americans who face food insecurity." Early in the Obama administration, Vilsack vowed to address the struggles of smaller farms and to help lift the broader rural economy. At the time, Charles Grassley, a fellow Iowan and powerful Republican senator, praised Vilsack's efforts, which he thought were "badly needed." In the end, Vilsack and the Justice Department did not mount an antitrust effort. Sen. Grassley has expressed support for Vilsack's nomination. "The next couple of years the priority will be getting the economy on its feet," said Marc Perrone, president of the United Food and Commercial Workers union, which represents thousands of meatpacking workers and has expressed support for Vilsack's nomination. Vilsack has frequently made clear his opposition to policies that would break up corporate agriculture conglomerates. "There are a substantial number of people hired and employed by those businesses here in Iowa," Vilsack said. "Telling those folks, 'you might be out of a job,' is not a winning message." Vilsack is expected to be a sharp contrast with the current ag secretary who was criticized within the department for sidelining career staff and politicizing research by moving the agency's economic research unit from Washington to Kansas City, Mo., leading to a wave of departures and stalling its work. To those who have worked with Vilsack, the notion that he is merely an ally of industrial farming is seen as unfair, said Anne McMillan, the former USDA deputy chief of staff. She argued that her onetime boss was always mindful of the plight of small farmers but that he needed to also look out for the broader industry. "His job required him to advance rural America and the ag industry and feed people," she said. "You can't not engage with the entire spectrum." So, we will see. Vilsack generally got high markets from the sector during his previous terms, and many expect that to happen again — although a number of key issues have sharpened significantly over the past few years and the job may actually be tougher these days — trends producers should watch closely if they appear, Washington Insider believes.
| Rural Advocate News | Thursday December 24, 2020 |
RFS Exemption Requests Rise Data released by the Environmental Protection Agency (EPA) showed another increase in small refinery exemptions (SREs) for blending requirements relative to the Renewable Fuel Standard (RFS). After remaining static for several months, there are now a total of 20 SREs that have been requested for the 2011-2018 compliance years, an increase of three from the November data. EPA also now shows that a total of 46 SREs have been requested for the 2019 and 2020 compliance years combined, 32 for the 2019 compliance year and 14 for the 2020 compliance year.
| Rural Advocate News | Thursday December 24, 2020 |
US To Lower Tariffs On Moroccan Fertilizer Maker OCP The U.S. Department of Commerce reduced the subsidy rate that Moroccan fertilizer manufacturer OCP would face on phosphate exports to the U.S., lowering it to 16.88% from 23.46%, according to a memo from the agency. "On November 30, 2020, we received timely ministerial error allegations that Commerce made significant ministerial errors in the Preliminary Determination with respect to OCP's subsidy rate," the document says. "As a result, we have amended the OCP's Group preliminarily ad valorem rate." However, Commerce noted that it disagreed with other contentions made by OCP in the information they provided to Commerce.
| Rural Advocate News | Wednesday December 23, 2020 |
New COVID-19 Package Helps Farmers Food and agriculture groups welcome the new COVID-19 relief package. Congress this week agreed on a $900 billion stimulus package, which includes up to $13 billion that directly benefits agriculture. Nearly $1 billion will support a dairy donation program and supplemental Dairy Margin Coverage payments. More help is available to specialty and non-specialty crop growers, and the Paycheck Protection Program will be expanded. American Farm Bureau Federation President Zippy Duvall says, “We’re pleased that Congress understands the toll the pandemic continues to take on farmers.” National Farmers Union President Rob Larew states, “The fact that a stimulus package has, at long last, been passed is certainly a relief.” And, National Corn Growers Association President John Linder says the assistance “will go a long way in providing the certainty” farmers need to recover from the coronavirus. Finally, National Milk Producers Federation President and CEO Jim Mulhern says, “We thank Congress for its leadership, and we look forward to working with USDA in implementing this legislation.” ************************************************************************************ Roberts’ Priorities Included in Senate-Passed Omnibus Legislation Retiring Senate Agriculture Committee Chairman Pat Roberts says the omnibus appropriations and COVID-19 bills reflect his priorities. Speaking of the two pieces of legislation, the Kansas Republican says, “I’m proud to cast one of my final votes in the Senate on behalf of America’s farmers, ranchers, and growers.” The legislation includes approximately $26 billion for pandemic-related agriculture and nutrition programs. Provisions in the legislation Roberts advocated for include the National Bio and Agro-Defense Facility Act of 2019, directing the facility to carry out parts of the National Biodefense Strategy. The legislation also includes the Securing All Livestock Equitably Act of 2020, which establishes a livestock dealer trust to benefit unpaid sellers of livestock. Additionally, the legislation includes funds for meat processors to upgrade plants for interstate shipment of products, the Paycheck Protection Program expenses deducibility, and simplifies the loan forgiveness process for PPP loans up to $150,000. The legislation also provides $11.19 billion for pandemic-related assistance to support agricultural producers. ************************************************************************************ Grassley Praises Approval of the Water Resources Development Act of 2020 Iowa Senator Chuck Grassley praised the passage of the Water Resources Development Act, included in the year-end funding bill. The legislation, known as WRDA, addresses the civil works program of the Army Corps of Engineers. The bill is critical for flood control, navigation, ports, locks, dams, and other water resources infrastructure. Grassley says the legislation "will help communities move forward with projects critical for flood control, navigation, ports, locks and dams and other water resources infrastructure." Grassley and others advocated for several provisions that were incorporated in the final bill, including the Inland Waterway Trust Fund Cost Share Program. This cost-share modification will help the modernization of the locks and dams on the Upper Mississippi River to move forward at a faster rate as they start the construction phase of the Navigation and Ecosystem Sustainability Program. The final bill also includes expanding work on a Lower Missouri River Basin Flood Risk Resiliency Plan. ************************************************************************************ China 2020 Soybean imports to Reach Record China’s soybean imports are expected record-high, according to Reuters. The nation is expected to import more than 100 million metric tons of soybeans in 2020, as the nation looks to rebuild its hog herd, boosting demand for protein. An executive with China’s state-owned grains trader COFCO told Reuters the country is expected to crush 92.6 million metric tons of soybeans this year. The record follows declines in demand stemming from African swine fever, which decimated China’s hog population. Chinese officials claim the country’s hog herd has recovered to more than 90 percent of normal levels, though that data has some analysts skeptical. Still, China expects the demand for protein, specifically soybeans for animal feed, to remain strong into the first quarter of 2021. For 2020, demand for soybean oil is expected to increase by more than six percent, as well, thanks to increasing use of the oil in biodiesel and animal feed. ************************************************************************************ Growth Energy Applauds Canada’s Clean Fuel Standard Last week, Canada published its nationwide Clean Fuel Standard draft regulation. The regulation is an initiative to reduce the lifecycle carbon intensity of fuels and energy used in Canada and achieve more than 20 million tons of annual reductions in greenhouse gas emissions by 2030. The Canadian Clean Fuel Standard regulatory scenario has modeled compliance to include an average 15 percent ethanol in gasoline by 2030. Growth Energy CEO Emily Skor says the standard continues to push the benefits of biofuels in North America, stating, “Canada continues to be a trailblazer in addressing climate change and cutting greenhouse gases through biofuels.” Earlier this month, Growth Energy and Advanced Biofuels Canada co-hosted two webinars for Canadian stakeholders outlining the benefits and potential of E15 as Canada looks to higher biofuel blends. Canada is currently the United States’ number one foreign customer for U.S. producers and a strong partner in promoting biofuels as a means to reduce greenhouse gases. ************************************************************************************ NASDA, NPPC, Applaud USDA Steps to Modernize Animal Biotech Regulations Livestock and agriculture welcome the recent proposal to shift animal biotech regulations from the Food and Drug Administration to the Department of Agriculture. USDA announced this week a proposal to move the regulatory framework to the agency. In a statement, the National Association of State Departments of Agriculture says, “Using the law as intended by Congress to bring order and efficiency to our current process welcomes innovation and enables our regulatory system to keep pace with science.” The National Pork Producers Council calls the announcement a “big step forward for America's farmers.” NPPC claims that FDA regulation of gene editing would result in an impractical, lengthy and expensive approval process. However, the organization counters, USDA's Animal and Plant Health Inspection Service already has a review process in place for gene editing in plants, which can serve as a model for livestock. USDA's rulemaking has a 60-day comment period. NASDA and NPPC have pledged to submit comments to the proposal.
| Rural Advocate News | Wednesday December 23, 2020 |
Washington Insider: US Leverage Over Beijing Bloomberg is reporting this week that President-elect Joe Biden will take office after the Trump administration spent years ramping up pressure on China, including $370 billion in tariffs, getting Canada to place a Chinese executive for Huawei Technologies Co. under house arrest, threatening access to U.S. capital markets and blaming the Communist Party for the scale of the COVID-19 outbreak. The President's pressure campaign continued last week, as the administration blacklisted more than 60 Chinese companies, limiting their ability to get U.S. technology, in order "to protect national security," the Commerce Department said. In addition, Beijing's recent behavior turned some nations that might have otherwise tried to straddle U.S.-China tensions more firmly against Chinese President Xi's government by asserting territorial claims in the South China Sea and in strategic areas like its border with India, as well as using economic coercion against countries like South Korea and Australia. "Trump's broad trade sanctions against China coupled with pushback from other countries against China's aggressive geopolitical diplomacy will give the Biden administration substantial leverage when it commences bilateral negotiations," said Eswar Prasad, who formerly worked on China issues at the International Monetary Fund. While Biden and many Democrats say they oppose the tactics Trump used to pressure China, those tools will remain on the table as his successor seeks to negotiate with leaders of the world's second largest economy. "I'm not going to make any immediate moves and the same applies to the tariffs," Biden said in recent interviews. Despite public misgivings about Trump's strategy toward Beijing, countries such as Britain and France have fallen into line behind the U.S. over the threat posed by Huawei to next-generation wireless networks. Western institutions such as the "Five Eyes" spy alliance and the North Atlantic Treaty Organization have turned their attention to combating threats from China. As the European Union and China aim to complete negotiations over an investment agreement, western countries raised concerns over allegations of forced labor in China's far western region of Xinjiang. The European Parliament backed a proposal that the deal "must include adequate commitments to respect international conventions against forced labor," Reinhard Buetikofer, a German Green party member of the European Parliament who chairs the delegation for relations with China, said on Monday. "European Commission should take that seriously!" "China's expectation for the Biden administration is to re-set China-U.S. relations aimed at re-engagement and mutual benefit," said Gao Zhikai, a former Chinese diplomat and translator for late Chinese leader Deng Xiaoping. "Poisoned China-U.S. relations need to be disinfected and both China and America need to be made winners, not losers." America's global reputation has suffered under Trump, Bloomberg said, and U.S. allies are unsure it can be trusted in the longer term. And as much as Trump's tactics have exhausted officials in Beijing, they have done little to change their policies. Xi's government has accelerated its efforts to rein in independent voices in Hong Kong and to bolster its outposts in the South China Sea and along its frontier. It has seen America's failure to tame the pandemic as evidence that the U.S. is already past its prime. Even if Biden succeeds in changing such perceptions, negotiations with China will probably be every bit as tortuous and drawn-out as those that took place under Trump, who never got the comprehensive trade deal with China that he promised to achieve when taking office in 2017. "I don't get the sense that China's leaders are under such stress that they're willing to tolerate significant concessions to remove unilateral U.S. pressure," said Ryan Hass, who previously oversaw China affairs at the National Security Council. The U.S.-China relationship has changed markedly since the president-elect was last in the White House in early 2017 and China's rapidly growing military prowess has given it more confidence to project power in the Asia Pacific, solidifying its hold on tiny South China Sea outposts despite protests from regional neighbors. To China's benefit, the Biden administration may also be more cautious about using some of the tools at its disposal in the future. While current Treasury Secretary Steven Mnuchin eventually designated China a currency manipulator, Biden's nominee for that post -- former Federal Reserve Chair Janet Yellen -- as indicated reticence about using that lever to win concessions. One of the biggest risks is that Biden finds himself distracted on the domestic front even as vaccine distribution expands. Unless Washington can get its house in order after a polarizing election and rebuild trust with allies abroad, any advantage Washington has over Beijing could remain largely theoretical, Bloomberg said. "There's potential for the Biden administration to build leverage but doing so will depend upon whether they are able to build consensus at home on top priorities, consensus with allies and partners on China," said former National Security Council staffer Hass, now a fellow at the Brookings Institution. The new administration's challenges in rebuilding the domestic economy remain very large. It also has strong challenges in proposed trade policies, all very important policy designs that producers should watch closely as these debates proceed, Washington Insider believes.
| Rural Advocate News | Wednesday December 23, 2020 |
Biofuel Producers Could Get COVID Payments from USDA The COVID aid approved by Congress contains several wind and solar energy provisions but also potential aid for biofuel producers is tucked in the legislation. Biofuel producers have been seeking aid as Congress worked on the CARES Act. However, unlike some of the other provisions in the COVID aid effort, USDA is not ordered to make payments to biofuel producers. A summary of the legislation noted USDA "may make payments to producers of advanced biofuel, biomass-based diesel, cellulosic biofuel, conventional biofuel, or renewable fuels with market losses due to COVID-19."
| Rural Advocate News | Wednesday December 23, 2020 |
USDA Moves To Bring GMO Animals Under Its Umbrella USDA announced it will move forward with an Advanced Notice of Proposed Rulemaking (ANPR) to solicit public input on a proposal to bring the regulation of animal biotechnology under USDA. USDA's plan would move some of FDA's current animal biotechnology oversight to USDA, with the ag agency consulting with FDA on that front. USDA said the notice will propose "a flexible, forward-looking, risk-proportionate and science-based regulatory framework that provides a predictable pathway to commercialization and keeps pace with advances in science and technology for certain farm animals (cattle, sheep, goats, swine, horses, mules, or other equines, catfish, and poultry) developed using genetic engineering intended for agricultural purposes." Office of Management and Budget finished the review of USDA's prerule on the matter December 18. This appears to put to rest what is said to have been a tug of war between USDA and FDA over animal biotech regulation
| Rural Advocate News | Wednesday December 23, 2020 |
Wednesday Watch List Markets A flood of reports are set for Wednesday, one day before Christmas Eve. Starting at 7:30 a.m. CST, we will see USDA's weekly export sales, weekly U.S. jobless claims, U.S. personal income and U.S. durable goods orders. A consumer sentiment index plus November new home sales will both be out a 9 a.m., followed by USDA's quarterly hog and pigs report at 2 p.m. CST. Weather Snow, low temperatures and strong winds will cover much of the western Midwest and portions of the Northern and central Plains Wednesday, including blizzard conditions. Travel and safety hazards are widespread along with livestock stress. Dry conditions are in store elsewhere, but strong winds in the remainder of the Plains and Midwest are unfavorable for winter wheat. Stressful cold will continue moving through the north-central U.S. through the Christmas holiday.
| Rural Advocate News | Tuesday December 22, 2020 |
Peterson Welcomes Food and Ag Provisions of COVID Relief House Agriculture Committee Chairman Collin Peterson Monday announced the food and agriculture provision in this week’s COVID-19 relief package. In addition to a 15 percent increase in benefits for recipients of the Supplemental Nutrition Assistance Program for six months, Peterson pointed specifically to the inclusion of support for those who were left out earlier assistance. Those include contract livestock and poultry growers, ethanol producers that saw a drop in demand, and livestock and poultry producers who had to depopulate herds and flocks because of supply chain disruptions. The bill also contains assistance for dairy farmers, funding for small and mid-sized livestock processors to attain federal inspection to accommodate increased demand, and animal health work and grants to state departments for ongoing farm stress programs. The outgoing Democrat, Peterson, says, "This bill isn't perfect, but it reflects a compromise and goes a long way toward getting us through this hard time and back to normal.” ************************************************************************************ Secretary Perdue Proposes Transfer of Animal Biotech Regulatory Framework to USDA Agriculture Secretary Sonny Perdue Monday announced a proposal to modernize regulations of agricultural animals modified or produced by genetic engineering. The Department of Agriculture will move forward with the rulemaking plan to move the regulatory framework to USDA. Perdue says the initiative follows President Donald Trump’s Executive Order on agricultural biotechnology that called upon federal agencies to make regulatory improvements to rectify long-standing barriers to innovation for U.S. agriculture. In a statement, the Secretary says, "If we do not put these safe biotechnology advances to work here at home, our competitors in other nations will." Perdue adds USDA is outlining a pragmatic, science-based, and risk-based approach that focuses on potential risks to animal and livestock health, the environment, and food safety. USDA's proposal would cover molecular characterization, animal health efficacy, environmental considerations, food safety evaluation, and food storage and processing. USDA’s proposal would also provide end-to-end regulatory oversight from pre-market reviews through post-market food safety monitoring of animals. ************************************************************************************ Biden Announces White House Climate Team President-elect Joe Biden recently announced his White House climate team. With climate change a top focus of the incoming administration, the team will play an influential role on policy. The team is led by Gina McCarthy, the Obama-era Environmental Protection Agency Administrator, who will serve as National Climate Advisor. Ali Zaidi (Zay-dee) was named deputy national climate advisory. Zaidi currently serves New York in a top energy and environment post. Also, on the climate team is Deb Haaland as the Biden Interior Secretary, and Jennifer Granholm, nominated as Biden's Energy Secretary. Biden EPA Administration pick Michael Regan joins the team and Brenda Mallory, chair of the Council on Environmental Quality. In a weekend speech, Biden stated, “We see farmers making American agriculture first in the world to achieve net-zero emissions and gaining new sources of income in the process.” Incoming Agriculture Secretary Tom Vilsack is not part of the climate team, but is seen as a key player for the administration's climate goals. ************************************************************************************ Meat, Poultry, Farm Workers High Priority for COVID-19 Vaccine Federal guidance suggests essential workers should be next to receive a COVID-19 vaccine, including meat packers and farmworkers. A Centers for Disease Control advisory committee voted in favor of a blueprint for essential workers and people over 75 as recipients of the vaccine in the next phase. In a news release, North American Meat Institute President and CEO Julie Anna Potts says, “Priority access to vaccines is a critical step for the long-term safety of the selfless frontline meat and poultry workers who have kept America's refrigerators full and our farm economy working.” She says $1.5 billion in COVID-19 preventions and supports implemented since the earliest days of the pandemic have reversed COVID-19's impact on meat and poultry workers. Potts adds Meat Institute members stand ready to support vaccination for a diverse workforce, which will also deliver wide-ranging health benefits in rural and high-risk communities. Food and agriculture workers are considered essential workers, along with energy, trade, retail and others. ************************************************************************************ USDA Receives Delivery of First Significant FMD Vaccine Bank Purchase Earlier this year, the Department of Agriculture announced the first significant purchase for its Foot-and-Mouth vaccine bank. This month, the purchase worth $27 million was delivered. The establishment of a robust FMD vaccine bank has been a top, long-term priority for the National Pork Producers Council, which was instrumental in advocating for its establishment as part of the 2018 Farm Bill. Currently, USDA, which has prescribed vaccination for dealing with an FMD outbreak, does not have access to enough vaccine should an outbreak occur. FMD is an infectious viral disease that affects cloven-hooved animals, including cattle, pigs and sheep, it is not a food safety or human health threat. The disease is endemic in many parts of the world and would have widespread, long-term fallout for livestock and crop agriculture, including the immediate loss of export markets. NPPC says the organization “looks forward” to continuing to work with the agency to ensure the FMD vaccine bank is adequately stocked. ************************************************************************************ Deere Partners FFA to Build the Next Generation of Leaders John Deere announced a $1 million donation this week to the National FFA Organization. The donation, scheduled for 2021, will support FFA’s mission through developing leadership skills, personal growth, and career success. Since John Deere’s initial contribution of $1,000 in 1943, it has donated more than $16 million to the National FFA Foundation. John Deere was also one of the first corporate sponsors to form an FFA Alumni and Supporters Chapter. Today, employees from John Deere facilities across the U.S. volunteer to coach, mentor and train FFA chapters. National FFA Foundation President Molly Ball says, “We are more than pleased to continue partnering with John Deere as we continue to provide programming that will enable the future of agricultural education and FFA.” John Deere Vice President of Production Systems Aaron Wetzel stated, “At John Deere, we believe FFA is as important to the future of agriculture as any cutting-edge machine, technology or service that we will deliver.”
| Rural Advocate News | Tuesday December 22, 2020 |
Washington Insider: Virus Surge Hammers UK, EU Trade Bloomberg and others reported over the weekend that the United Kingdom “confronted threats of food insecurity and panicked shopping days before Christmas as European nations restricted trade and travel to guard against a resurgent coronavirus.” The report said the development offered a “preview of the border chaos to come in the absence of a Brexit deal.” Fearing a fast-spreading new strain of the virus that forced a strict lockdown across England, France on Sunday suspended travel from the UK for 48 hours and wants a stricter testing regime before lifting the blockade. Germany and Italy halted arriving flights from Britain with Spain and Portugal following suit. The crisis gave renewed urgency to negotiations for a trade deal with the European Union that remained at a critical stage after weekend talks. Late Sunday, the Port of Dover stopped freight moved by truck into France. Traffic into the UK was unaffected, though truckers often run supplies in both directions and the latest outbreak in the heart of England may discourage them from entering the island. The disruptions are exposing Britain's trade vulnerabilities just as a 4-1/2-year odyssey to leave the EU moves from political rhetoric to economic reality. Business groups facing catastrophic losses urged Prime Minister Boris Johnson's government to act quickly, with the 18,000-member Logistics UK calling for rapid COVID-19 testing of truckers departing the country as the quickest way of protecting supply chains. The group said there are more than 100 trucks carrying seafood due to cross the border into the EU, bound for Christmas wholesale markets in France and Spain. Fears are growing that live shellfish will spoil if they're held up at the border. French Transport Minister Jean-Baptiste Djebbari said European nations are working on “a solid health protocol” to be implemented “in the coming hours.” Container ports and ferry terminals were already congested because of stockpiling ahead of the Dec. 31 deadline marking a final break from the European single market. However, a meeting of the EU's crisis response experts in Brussels on Monday ended without reaching a decision on how to proceed regarding UK travel, Bloomberg said. Some members of the group called for an urgent discussion at political levels to resolve the issue. In the UK, officials sought to downplay the urgency of the situation. Jamie Davies, the prime minister's spokesman, urged Britons not to panic-buy groceries and said “we have resilient supply chains and it is the case that the majority of our food doesn't come in through the short straits.” Asked about virus vaccines, Davies also said the UK already has “the majority of this year's supply” from Pfizer Inc. The border chaos comes at the end of a year that's seen Johnson nearly die from the virus and come under heavy criticism over his policy responses, which left the UK with a death toll second only to Italy in Europe and the worst hit to output of any major economy. British supermarket chain J Sainsbury Plc said it is considering using air freight for products sourced from Europe. The firm expects to begin to see “gaps” in the coming days sourcing some fruits and vegetables, said Victoria Durman, head of corporate communications. Outside Dover, trucks began lining up on the M20 motorway as the “Operation Stack” emergency plan was triggered with drivers unable to board ferries. The Department for Transport was also preparing Manston airport in Kent, which is being overhauled to accommodate as many as 4,000 vehicles as part of Britain's no-deal planning, according to the local government's website. UK travel, leisure and retail shares slumped on Monday as flights were canceled, while stay-at-home stocks, like Ocado Group Plc, got a boost. Airlines were among the worst hit, with British Airways parent IAG SA falling as much as 20% and Easyjet Plc down as much as 18%. The economic drag of tougher restrictions and trade turmoil will only deepen the hole the country is in, unleashing more damage stretching from mom-and-pop retailers to already struggling European airlines, Bloomberg said. Then there is the political fallout. Johnson abruptly scrapped plans to allow families to mix over the holidays as the government warned over the weekend that the new strain of the virus is “out of control.” There was chaos at train stations with people defying social-distancing rules to get out of the capital. More than 16 million Britons are now required to stay at home, mainly in London and southeast England. The measures ban household mixing in the capital and the southeast, and allow households to see each other “just on Christmas Day” across the rest of England. So, we will see. It seems now that the mutations of the virus have not reduced the effectiveness of the vaccines that are being mobilized, but certainly concerns regarding potential impacts have locked up travel and trade in several areas. These are trends and impacts producers should watch closely as they intensify and complicate anti-virus efforts worldwide, Washington Insider believes.
| Rural Advocate News | Tuesday December 22, 2020 |
Food, Ag Workers Next In Line For Vaccines Food and agricultural workers will join people 75 and over in the next group to get vaccines against the COVID-19 pandemic after health care workers and nursing home residents. The Advisory Committee on Immunization Practices (ACIP) voted 13-1 in favor of the plan put forth by an ACIP work group, which puts the nation's approximately 30 million frontline essential workers and 19 million persons aged 75 and over in Phase 1B. “Grocery store workers” and those in “food and agriculture” and “manufacturing” also are specifically listed in the second phase.
| Rural Advocate News | Tuesday December 22, 2020 |
Sen. Portman Backs Nomination of Tai To Be USTR Sen. Rob Portman, R-Ohio, is one of the first Republicans to publicly endorse the nomination of Katherine Tai to be the U.S. Trade Representative, calling her experience as the top House Ways and Means trade lawyer good background for the Cabinet post. “I'm glad that Katherine Tai is the likely nominee,” Portman said during a discussion with other former USTRs hosted by the Center for Strategic and International Studies. “I think that will help in terms of moving a trade agenda forward vis-a-vis Congress because she, obviously, knows how we operate, understands (trade promotion authority) well.” Portman served as USTR under the George W Bush administration.
| Rural Advocate News | Tuesday December 22, 2020 |
Tuesday Watch List Markets Early Tuesday features reports on Gross Domestic product, consumer confidence and existing home sales. We will also be watching updated forecasts for Brazil and Argentina, and any new China business that may be announced. Weather Tuesday features mostly dry, warm and windy conditions over the central U.S. The northwest will have a wintry pattern with cold, snow and strong winds. Northern and central areas are in line for much colder conditions with high winds and northern snow Wednesday, including blizzard potential in the northern Plains and northern Midwest.
| Rural Advocate News | Monday December 21, 2020 |
CoBank: 2021 Year Ahead Report on U.S. Rural Economy The speed of the economic recovery will largely hinge on the availability, dissemination, and reach of COVID-19 vaccines, pushing a pent-up consumer demand to later in 2021. That’s according to a comprehensive year-ahead outlook report just issued from CoBank’s Knowledge Exchange Division. “The coming year will be a recovery year for most Americans and the businesses that make up the U.S. economy,” says Dan Kowalski, vice president of the Knowledge Exchange Division. “The early part of the year should look very different than the latter, but in total, economic growth should be about four percent, following a retreat of roughly four percent in 2020.” The report lists several key factors that will shape agriculture and market sectors that serve rural communities. The largest factor is COVID-19, which will steer the global economy into 2021. Of all the major economies, China has recovered from COVID the quickest, while Europe has suffered the most. CoBank says a post-COVID bounce will come to the U.S. next year, just not anytime soon. Other factors include monetary policy, a strong finish to 2020 in the U.S. farm economy, specialty crops, grain and farm-supply sectors, a biofuels recovery, dairy and animal protein, and more. ********************************************************************************************** Biden Picks Interior Secretary, EPA Boss President-elect Joe Biden will nominate New Mexico Democratic Representative Deb Haaland to be his Secretary of the Interior, and Michael Regan to head the Environmental Protection Agency. NBC News says if Haaland is confirmed, she would be the first Native American to serve as a Cabinet secretary. If confirmed by the Senate, Regan would be the second black EPA chief in history after Lisa Jackson, the EPA administrator during Barack Obama’s first term. As interior secretary, Haaland would oversee the agency tasked with managing and conserving much of America’s federal lands and natural resources, including national parks and tribal lands. Regan is currently the head of the North Carolina Department of Environmental Quality. He has previous experience at the EPA during the Bill Clinton and George W. Bush administrations. Before leaving the EPA, he served as a national program manager responsible for designing programs to help reduce pollution and improve energy efficiency and air quality. Regan would have a top role in overseeing Biden’s ambitious proposals to combat climate change and invest in green energy and infrastructure. ********************************************************************************************** Groups React to Biden Nomination for EPA Administrator U.S. agriculture groups reacted to President-Elect Joe Biden’s nomination of Michael Regan to head the Environmental Protection Agency. Regan most recently led the North Carolina Department of Environmental Quality. Howard “A.V.” Roth (Rowth), president of the National Pork Producers Council, congratulates Regan on getting the nomination. “As DEQ secretary in North Carolina, a leading pork-producing state, he always had an open door, valued diverse points of view, and worked to find solutions that ensured science and data were guiding decisions,” Roth says. “We hope those same qualities will carry over to his leadership at EPA.” Dennis Slater, President of the Association of Equipment Manufacturers, says they applaud Regan as Biden’s choice. “Our industry is very familiar with integrating innovative technologies into our operations, whether it includes precision agriculture techniques to ensure more efficient harvests for farmers or deploying smart technology to promote sustainable construction practices in the execution of infrastructure projects,” Slater says. “We look forward to working with Regan to advance a shared vision of a world in which all of America’s basic needs get fulfilled.” *****************************************t***************************************************** Former USMEF Chief Receives Japan’s Highest Civilian Honor The Japanese government announced that Phillip Seng, former president and CEO of the U.S. Meat Export Federation, is a recipient of “The Order of the Rising Sun.” The award goes to people who’ve made distinguished achievements in areas like international relations and promoting Japanese culture. Japan’s Ministry of Foreign Affairs recommended Seng for his contributions to “strengthening Japan-U.S. economic relations, particularly in the meat field, and promoting mutual understanding between Japan and the United States.” Seng says he’s honored and humbled to receive a prestigious award like this from the Japanese government. “However, the recognition should primarily go to the many Japanese colleagues who mentored me along the way, and to the numerous Japanese individuals and companies who introduced and championed U.S. meat products in Japan.” The Order of the Rising Sun is considered the highest ordinarily conferred order for U.S. civilians. “On behalf of USMEF, I offer Phil a wholehearted congratulations on this honor,” says current USMEF President and CEO Dan Halstrom. “Phil deserves credit for advancing U.S. red meat interests around the world, and his impact was especially evident in Japan, where he worked tirelessly to strengthen relations between the U.S. and Japan.” ************************************************************************************ USDA Reopens Higher Blends Infrastructure Incentive Program Grants The U.S. Department of Agriculture announced the second round of grants available through the Higher Blends Infrastructure Incentive Program. The program is for infrastructure projects designed to help facilitate increased sales of higher biofuel blends to new and returning applicants. In making the announcement, Ag Secretary Sonny Perdue recognized “the importance of our ethanol and biofuels industries and the positive impacts they deliver to consumers and farmers with an affordable, abundant, and clean-burning fuel.” Growth Energy’s unmatched network of large and small retail partners has already secured nearly $30 million in grants for over 290 sites selling more than 400-million gallons of gasoline every year. After USDA’s announcement of the second wave of grants, Growth Energy CEO Emily Skor says they’ve heard countless success stories from their retail partners about how HBIIP grants have helped them grow their E15 fuel offerings, strengthen their infrastructure, and increase store foot traffic and sales. “In the face of COVID-19, these grants have been a welcome relief for our industry and our hardworking men and women across the country, and we stand ready to assist retailers who hope to take advantage of this growth opportunity.” ********************************************************************************************** 240,000 Chickens Die in Florida Fire At least 240,000 chickens died early on Thursday morning when a fire roared through two barns in Florida owned by one of the nation’s largest distributors of eggs. The New York Times says the fire was reported at 1 a.m. by workers at the Cal-Maine Foods Facility in Dade County, Florida. Both barns destroyed by the fire contained two large coops, each containing more than 60,000 young hens, called pullets, which hadn’t started to lay eggs. The farm is in a rural county 40 miles northeast of Tampa. The cause of the fire is currently under investigation by the state’s fire marshal, who says the financial loss may amount to one million dollars. The blaze is the newest in a rash of barn fires across the United States that have upset animal rights groups that have previously criticized Cal-Maine Foods about the conditions of its facilities. The company’s chief financial officer says two or three percent of the company’s pullets were lost in the fire, and it shouldn’t disrupt production.
| Rural Advocate News | Monday December 21, 2020 |
Washington Insider: The Electronic Hack Just when you thought things in Washington couldn't get more confused, it appears that a massive hack on the federal government's cyber systems has taken place — and possibly is still going on. Bloomberg is emphasizing that the attack presents President Trump “with the same choice Barack Obama faced in the waning days of his tenure: whether to impose sanctions on Russia, and how severe to make them.” So far, Trump has shown little willingness to impose costs. For example, on Saturday, the President downplayed the severity of the cyber-attack and suggested China may have been responsible--even as other U.S. officials are convinced Russia was the perpetrator.” Secretary of State Michael Pompeo had earlier claimed that the Russians were behind this attack and that Putin “remains a real risk to those of us who love freedom.” In 2016, confronted with evidence that Putin's government orchestrated cyberattacks aimed at interfering with the U.S. 2016 election, President Obama levied sanctions against Russia's intelligence services and expelled 35 diplomats. Now, it's the Trump administration's turn “to decide whether to call out and punish the Kremlin,” Bloomberg said. The alternative is to “go easy on the Russian president and leave it to President-elect Joe Biden to formulate a response. While some details of the cyber-attack will likely remain classified, “there was a significant effort to use a piece of third-party software to essentially embed code inside of U.S. Government systems and it now appears systems of private companies and companies and governments across the world were hit as well,” Pompeo said. Among the targets hit were the U.S. nuclear weapons agency and at least three states. Other potential victims include the Pentagon and Microsoft Corp., which found code related to the cyber-attack “in our environment, which we isolated and removed,” spokesman Frank Shaw said in a statement Thursday. Unlike in 2016, the latest attack didn't involve election interference but there's little doubt it was a serious strike. The U.S. Cybersecurity and Infrastructure Security Agency called it a “grave risk” to federal, state and local governments, as well as critical infrastructure and the private sector. SolarWinds said 18,000 customers downloaded the tampered software update. The implications of the attack quickly became highly political. “The one thing you can say is the Trump administration has basically given the Russians a green light by not calling them out,” said James Lewis, director of the Strategic Technologies Program at the Center for Strategic and International Studies. “Does the Trump administration take any action even if it's just symbolic? And so far the answer is no.” In fact, President Obama was criticized for reacting too slowly to the Russian election meddling, although his sanctions eventually sparked one of the most notorious episodes of the Trump era: the decision by that administration's incoming national security adviser, Michael Flynn, to privately urge Russia not to respond to Obama's sanctions. Trump and many of his top aides have repeatedly tried to shift the spotlight to China as America's biggest national security threat, sometimes downplaying Russian actions in comparison, Bloomberg said, and it argued that “President Trump has never let go of the belief that he could leverage personal ties with President Putin to improve relations with Russia. That likely makes it much harder for his staff to discuss punishment for fear that Trump would reject it out of hand.” Bloomberg also noted that there are many ways for the Trump administration to respond to the hack, including new sanctions on Russia's intelligence services, for example. Yet one challenge officials face is that such actions, as the current episode proves, clearly have failed to deter Russia in the past. Another issue that the current and new administrations will have to confront is that no one knows the true extent of the hack or what the hackers will do with the information gleaned. Snooping on an adversary's networks is something countries routinely do and, as brazen as the hack may be, might provoke only a moderate response, in keeping with what past administrations have done. But if the hackers use the breach for harder attacks — shutting down electrical grids, for example, or wiping out people's bank accounts or exposing sensitive information publicly — that could provoke a more serious response, Bloomberg says. “Sanctions are probably the most politically expedient option,” said Lauren Zabierek, executive director of the Cyber Project at Harvard University's Belfer Center for Science and International Affairs. Given that Russia is unlikely to be deterred, experts argue that the best result will have to be a fundamental rethinking of cyber issues, something that will require new money and more time than the Trump team has left before Biden's Jan. 20 inauguration. “We've been talking about this for 25 years, and we're not there,” said Christopher Painter, who was the State Department coordinator for cyber issues before Trump shut down his office in 2017. “The way you do that is you make this whole area much more of a mainstream national security priority and not treat it as this little boutique-y tech issue, which I think in large part it has been relegated to,” Painter said. So, we will see. The attack will challenge both the old and the new administrations in the short run, and will also present a severe challenge for the longer term — one producers should watch closely as proposals emerge and are considered, Washington Insider believes.
| Rural Advocate News | Monday December 21, 2020 |
Haaland To Lead Department Of Interior, North Carolina Official To Lead EPA The Biden administration will pick Rep. Deb Haaland, D-N.M., to lead the Department of Interior, the first Native American to lead the agency. The administration will also select Michael Regan to head EPA, currently the head of North Carolina's Department of Environmental Quality. Former EPA Administrator Gina McCarthy will work as a White House advisor on domestic climate policy, former Michigan Gov. Jennifer Granholm will be nominated secretary of energy, former Secretary of State John Kerry will serve as a global climate envoy, and lawyer Brenda Mallory will reportedly be named chair of the Council on Environmental Quality.
| Rural Advocate News | Monday December 21, 2020 |
COVID Cases In Meatpacking Counties Were 10 Times Those In Other Rural Counties During the first wave of the coronavirus pandemic, rural meatpacking counties had infection rates 10 times higher than rates in other rural counties, USDA said Thursday. And despite improvements, the COVID-19 rate in the 49 U.S. counties that rely on meat plants for jobs remains somewhat higher than in the rest of rural America as the disease surges again. In its annual Rural America at a Glance report. USDA also said that rural residents, who make up 14% of the U.S. population, accounted for 27% of the COVID-19 deaths nationwide during the final three weeks of October. The report covered the pandemic and the accompanying recession from mid-March through Nov. 1.
| Rural Advocate News | Monday December 21, 2020 |
Monday Watch List Markets Monday is the first day of winter in the Northern Hemisphere and the first day of summer in the Southern Hemisphere. We can be sure traders will stay close to South American weather forecasts and any export news that develops. USDA's weekly report of export inspections is due out at 10:00 a.m. CST and will likely show another week of active soybean inspections. Weather Dry conditions will cover most primary crop areas Monday. Exceptions will be the Great Lakes with snow and the Northwest with mixed precipitation. Temperatures will be seasonal to above normal.
| Rural Advocate News | Friday December 18, 2020 |
Growth Energy Calls on Congress to Extend Biofuel Tax Provisions Growth Energy CEO Emily Skor sent a letter to Congressional leaders this week that called on lawmakers to include biofuels in any legislation that would extend expiring tax provisions at year’s end. There is a growing possibility that Congress will consider passing a tax extenders package before the current congressional session comes to an end. In the letter, Skor asks congressional leadership to consider extending the Section 40 Second-Generation Biofuel Producer Tax Credit and the Section 45Q Tax Credit. The Section 40 Second-Generation Biofuel Producer Tax Credit is a credit per-gallon of second-generation biofuel that Skor says, “Provides an essential incentive for our biofuels industry to produce a low-carbon, renewable fuel which keeps our rural communities afloat.” The Section 45Q Tax Credit is a credit on a per-ton basis of any carbon dioxide sequestered, encouraging ethanol plants to further reduce their carbon footprint. “Especially during a time of depressed gasoline demand, we must use all legislative tools available to support our businesses and infrastructure workforce,” Skor says. ********************************************************************************************** Blueberry Growers Form Alliance to Battle Rising Imports America’s blueberry growers established a new coalition called the American Blueberry Growers Alliance. The goal is to seek relief from rising imports that are harming their business. The alliance will provide information and support to an ongoing U.S. International Trade Commission investigation into the serious injury caused by increasing imports of fresh, chilled, and frozen blueberries under Section 201 of the Trade Act of 1974. Blueberry imports come in from several countries in the Western Hemisphere. Those imports rose by more than 60 percent from 2015 to 2019. Imports from Peru and Mexico have increased by 1,200 and 268 percent during that same period, respectively, helping to drive down blueberry prices by double-digits. Alliance members want bipartisan support from the U.S. government and Congress to use existing trade laws to remedy the injury to U.S. growers. “We’ve been telling Washington about the unfair trade practices for years,” says Alliance steering committee chair Jerome Crosby. “Our family farms continue to be harmed by a flood of blueberry imports. We need relief and for our leaders to stand with American growers.” The Alliance includes growers from Georgia, Florida, Michigan, and California. ********************************************************************************************** Tyson Foods Fires Seven Managers Over COVID Betting Tyson Foods fired seven top managers at its largest pork processing plant after an investigation confirmed allegations that they bet on how many workers would test positive for COVID. The investigation was led by former U.S. Attorney General Eric Holder and revealed details that an ABC News article called “troubling allegations.” An outbreak at the Tyson Plant in Waterloo, Iowa, infected more than 1,000 employees, six of whom died. “We value our people and expect everyone on the team, especially our leaders, to operate with integrity and care in everything we do,” says Tyson Foods CEO Dean Banks. “The behavior exhibited by these individuals does not represent the Tyson core values, which is why we took immediate action to get to the truth.” Banks traveled to the Waterloo plant this week to talk about the actions with the employees. Tyson spokesman Gary Mickelson says the company won’t release any detailed findings of the investigation or the names of those fired because of privacy issues. “We can tell you that Mr. Holder and his team looked at the gaming allegations and found enough evidence for us to terminate those involved,” Mickelson says. ************************************************************************************ Bipartisan Bill Would End Abuse of Conservation Easements Senate Finance Committee Chair Chuck Grassley and a bipartisan group of three other senators introduced a bill called the “Charitable Conservation Easement Program Integrity Act.” The goal of the legislation is to stop the abuse of conservation easements, save taxpayers billions of dollars, and promote conservation in the U.S. “The conservation easement program is an important tool for protecting and preserving our environment,” Grassley says. “But bad-faith scammers have taken advantage of the program through abusive schemes at the expense of the American taxpayer.” Grassley investigated the growing number of scams and says they won’t stop without legislative action. “I’m glad to join Democratic Senators Debbie Stabenow of Michigan and Ron Wyden of Oregon, along with fellow Republican Steve Daines of Montana, in introducing this bill that would stop these scams from undermining the good work of farmers, ranchers, and conservationists,” Grassley adds. Despite increased enforcement from the Internal Revenue Service, recent IRS data shows the total amount of deductions claimed through these tax shelters increased from $6.8 billion in 2017 to $9.2 billion in 2018. The bill preserves an important charitable deduction for people who have true charity and conservation in mind, including for family farms and ranches. *****************************************t***************************************************** New Record Set in NSP Sorghum Yield Contest National Sorghum Producers is proud to announce that a new U.S. dryland sorghum yield record is 245.86 bushels per acre. Ella Johnston of Fulton County, Pennsylvania, set the record in the 35th National Sorghum Yield Contest. NSP says sorghum producers faced weather challenges, economic uncertainty, and a challenging year overall, but they still showed resilience, continued to farm and produced high yielding sorghum. The 2020 National Sorghum Yield Contest had seven national winners selected from three categories for both the eastern and western regions of the U.S. This year’s top yield and Bin Buster winner is Johnston’s new dryland record. “The National Sorghum Yield Contest is an avenue to not only highlight the yield achievements of our producers but also to discover, learn, and engage with our members from New Jersey to Idaho and in between,” says NSP Board of Directors Chairman Kody Carson, a sorghum producer from Texas. “This year demonstrates the resilience of our producers, and we’re proud of pushing those boundaries and revealing the potential of sorghum in record-setting ways.” ********************************************************************************************** EU-UK Trade Talks will Go Past Christmas Senior British Minister Michael Gove says that Britain had hoped to reach a trade deal with the European Union by now, but the talks may now go on until after Christmas. “We’ll want to ensure that parliament has a say, and a chance to scrutinize any agreement reached,” Gove tells a parliamentary committee. “So, a realistic deadline will likely be immediately in the days after Christmas.” Reuters says any possible disruption at British ports after the U.K. ends its status-quo transition period with the European Union and introduces new customs rules will be short-lived. A previous warning from the government said that even with a trade agreement, the 7,000 trucks heading for ports in southeast England would be held in check. Gove tells the parliamentary committee that’s a worst-case scenario. “I would expect that we would find that after an initial few days and weeks of a potential disruption that things will resolve themselves and find a new normal relatively early in the new year,” Gove adds. The British Minister added that if there isn’t time for parliament to have a say on any potential agreement, the U.K. will have to trade on World Trade Organization terms.
| Rural Advocate News | Friday December 18, 2020 |
Washington Insider: Retail Spending is Red Flag for Economy The New York Times is reporting this week that while consumer spending has been one of the few bright spots in the pandemic-battered economy even in the face of mounting job losses, political turmoil and recurring virus outbreaks, “that streak is over now.” U.S. retail sales declined last month and in October, raising questions about how retailers are faring in the holiday shopping season--and about the stability of the broader economy, the Department of Commerce said on Wednesday. Sales fell 1.1% in November — more than economists had predicted — as spending on categories like automobiles, electronic stores, clothing and restaurants and bars softened, Commerce said. Commerce also revised its tally for October to a 0.1% decline, from an increase of 0.3% that had been reported last month. Economists said they see the declines as “warning signs” that the economy is entering a rough patch and is in need of a jolt from another round of government stimulus. “When the U.S. consumer fails to spend, the world's economy feels it,” said Beth Ann Bovino, chief U.S. economist at S&P Global. The November slide, in particular, adds new urgency to this week's ongoing discussion on Capitol Hill over a stimulus package. Consumer spending accounts for roughly 70% of total economic growth so propping up retail sales is central to “nearly any” plans to stoke a recovery. And economists have been warning that failure to enact more financial support for the unemployed would eventually jeopardize the progress made in reviving the economy. “Weak retail sales in the fall, along with a recent increase in unemployment insurance claims, are warning signs for the economy at the end of 2020,” Gus Faucher, chief economist at PNC Financial Services Group, said in a research note. The usual uncertainty around holiday spending is being exacerbated as retailers pushed annual sales events into October in a bid to jump-start the season and prevent crowded stores and shipping delays in November. Many major chains reported sales gains in October, but they were not certain about how that would affect spending in November and December, he said. He also noted that the boom in shopping this spring after virus restrictions were lifted reduced “the need for purchases at the end of the year.” Amazon's “Prime Day,” an annual event for online deals, was held in October, and spurred most major chains to introduce bargains around the same time, which may have also encouraged earlier holiday spending. The report on Wednesday showed the steepest declines at electronics and appliance stores, gas stations, clothing stores, department stores and bars and restaurants. The decline in apparel spending has been part of a broader shift this year, as many Americans remain isolated at home, make fewer trips to the office for work, have postponed events and are avoiding shopping at malls. Spending at bars and restaurants tumbled 4% from October and was down about 17% compared with a year earlier, reflecting the strain on these establishments, the report said. With restrictions on indoor dining taking effect again in cities like New York and public officials warning of a difficult winter ahead, spending at restaurants is likely to remain lower for several months. Spending on gasoline also declined in November, as more families opted not to travel for Thanksgiving; many people are planning to stay home for Christmas also. Auto sales fell 1.7% in November, after months of gains. Consumers have followed abnormal shopping patterns this year, making month-to-month sales difficult to predict. Some analysts had not expected the rebound in sales to have lasted so long, given the grim economic realities for millions of Americans. By the summer, retail sales had returned to pre-pandemic levels, helped by previous rounds of stimulus, job growth and low interest rates. This makes the important holiday season especially difficult to gauge. Black Friday, which has traditionally signaled the start of the holiday shopping season, was largely a bust for many retailers as cases were flaring. Some companies reported that in-person traffic that day declined by as much as 50% from last year, as shoppers concerned about the virus stayed away from the stores. Still, online sales have been strong through the holidays and November sales were up 4% over last year's figures. The National Retail Federation pointed to the online increase as a sign that the holiday season was off to a strong start for retailers. But the organization also said that additional fiscal stimulus from Congress is needed. Also, there likely are limits on how much the boom in online shopping can prop up the overall economy. “There are only so many televisions you can buy,” said Bovino, the economist at S&P Global. “At some point, you reach saturation.” She said the decline in November sales was “much worse than expected” and reflected several troublesome realities. So, we will see. The outlook for another stimulus appears brighter as this week winds down and political uncertainty has declined as the electors have chosen a new president-elect. However, the retail spending jolt provides another indicator that the new administration will face serious economic challenges and the coming economic battles should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday December 18, 2020 |
Tyson Foods Under The Spotlight New York City Comptroller Scott Stringer has asked the U.S. Securities and Exchange Commission (SEC) to open a probe into Tyson Foods Inc. for allegedly making misleading disclosures to investors in its annual report, including how it characterizes worker safety and the COVID-19 pandemic. “I am calling on the SEC to immediately open an investigation into Tyson's misleading and dubious claims that they are adhering to OSHA and CDC safety guidelines, because shareowners need a full and transparent accounting into Tyson's workplace safety and the risks to both workers and investors amid the COVID-19 pandemic,” Stringer said. The company also announced it fired seven managers at an Iowa facility for having a pool on how many COVID infections would be found at the plant.
| Rural Advocate News | Friday December 18, 2020 |
Lighthizer Says Biden Should Keep Pressure On China The incoming Biden administration should hold to the Phase One agreement between the U.S. and China and continue to use tariffs as leverage on China, U.S. Trade Representative Robert Lighthizer told Reuters in an interview. China has done a “reasonably good job” in implementing the pact, he noted. “I would hold their feet to the fire on Phase One,” Lighthizer said when asked what the Biden administration should do relative to the Phase One deal. "I think in some parts they (China) have done a reasonably good job, in other parts they haven't.” China's purchase commitments are one area, he noted, indicating China is well behind on those commitments which in part is due to the pandemic. “I would use the dispute settlement process to resolve specific issues,” Lighthizer said. “I would keep the tariffs in place for sure. I think if you see the tariffs dissipating that's a signal that we're not serious about understanding that China is a strategic adversary.” He expressed a view that the Trump administration's actions on China have "changed the way people think about China in the economic sphere.” On other trade matters, Lighthizer said the U.S. contention that the WTO has failed relative to reining in China and that has spawned global agreement that the world trade body needs reform. Signals so far from the incoming administration are that they do not plan on changing the current U.S. trade stance on China and Biden has ordered a review of the Phase One trade deal. Lighthizer offered no comments on his potential successor — House Ways and Means counsel Katherine Tai. The Biden trade agenda revealed thus far indicates their initial actions are not going to veer greatly from the Trump administration, but expectations are there will be changes ahead.
| Rural Advocate News | Friday December 18, 2020 |
Friday Watch List Markets On Friday morning we will watch leading economic indicators which comes out at 10 a.m. We will also be watching weather updates for South America and 8 a.m. sales for export sales of corn and beans, especially to China. Weather Dry conditions will cover most crop areas Friday. Exceptions will be in the far northern Midwest with periods of mixed precipitation. Temperatures will be mild for the season. In the Northeast, the drier trend will favor clean-up after this week's record snowstorm.
| Rural Advocate News | Thursday December 17, 2020 |
USDA Celebrates 2020 Accomplishments Agencies within the Department of Agriculture this week celebrated their accomplishments in 2020. USDA highlighted what the department considered its successes this year. At the Farm Service Agency, the department says USDA farm programs helped farmers and ranchers weather a tough 2020. FSA Administrator Richard Fordyce stated, “We partner with agricultural producers to grow and expand their operations as well as weather the unpredictable, such as the COVID-19 pandemic and natural disasters.” USDA’s farm program agencies – the Farm Service Agency, Natural Resources Conservation Service, Risk Management Agency, and Farm Production and Conservation Business Center worked to deliver programs to assist producers while also making strides to enhance efficiency and effectiveness to improve service to customers. USDA Undersecretary Bill Northey says, “We continue to admire and support the resiliency of farmers and ranchers during challenging times.” Agriculture Secretary Sonny Perdue stated the year was tough, but “USDA met these challenges with a multitude of programs and services.” ************************************************************************************ Industry Groups Call Brazil Decision ‘Devastating’ For U.S. Ethanol A coalition of agriculture groups says Brazil's decision to impose a 20 percent tariff on all U.S. ethanol imports is devastating for the U.S. ethanol industry. The group includes the U.S. Grains Council, Growth Energy, the Renewable Fuels Association and the National Corn Growers Association. The organizations made the comments in response to the Brazilian government’s decision to let the current tariff rate quota expire, replacing it with a 20 percent tariff on all imports of U.S. ethanol. The statement continues, “Not only does this decision risk destroying the great progress our two nations have made as global leaders in ethanol production, it marks a dramatic turn in our bilateral trade relationship.” Since May, U.S. exports to Brazil have fallen to less than four million gallons. Over the same time period, Brazil has exported nearly 96 million gallons of fuel ethanol to the United States. A 20 percent tariff will “only further imbalance trade between the two countries.” ************************************************************************************ USDA Seeks Public Input on Guidance Defining Nonindustrial Private Forest Land Eligibility The Department of Agriculture seeks public input on Nonindustrial Private Forest Land related to technical and financial assistance available through conservation programs. The lands make up a large portion of the forested land base in the United States. Forest management decisions on these lands impact the nature and level of benefits derived from the land. USDA's Natural Resources Conservation Service welcomes input from stakeholders to assist with developing guidance about how to identify land for program enrollment purposes. NRCS must ensure the guidance is consistent with how other USDA agencies identify Nonindustrial Private Forest Land under identical or similar frameworks. The request for input is to improve transparency about how NRCS makes land eligibility determinations of forest lands. The criteria will be adopted after the close of the 30-day period and after consideration of all comments. NRCS requests input on the technical guidance through January 19, 2021. Electronic comments must be submitted through regulations.gov. ************************************************************************************ NCBA Awards Roberts Top Hand Award The National Cattlemen's Beef Association this week recognized Chairman of the Senate Agriculture Committee, Pat Roberts, with the Capitol Hill Top Hand Award. NCBA awarded the Kansas Republican the accolade in honor of his long career fighting for cattle producers and rural communities in the nation's capital. NCBA President Marty Smith stated, “Chairman Roberts is a pillar of the cattle industry and there is no one more deserving of this award.” Throughout a career spanning decades, Smith says Roberts has always been committed to helping cattle producers in every way he can. The Capitol Hill Top Hand Award, in its inaugural year, is given to one elected official annually, who goes above and beyond the call of duty to represent cattle producers nationwide. Roberts is retiring at the end of the congressional session, ending a political career that saw him leading both the House and Senate Agriculture committees. Kansas Republican Roger Marshall will take his Senate seat in January. ************************************************************************************ AgDiscovery Summer Student Program Now Accepting Applications The Department of Agriculture this week announced the application period for the 2021 AgDiscovery program. AgDiscovery is a national summer outreach program designed to introduce students in grades 7-12 to agricultural sciences. The program is a unique opportunity for students to gain a first-hand view of the many career paths available in the agricultural sciences field. Those career paths include plant and animal health, wildlife management, biotechnology, environmental science, forestry, entomology, food safety and food production, and managing the business aspects of agriculture. AgDiscovery challenges students to consider the importance of American agriculture, and the role USDA plays in agriculture. The program educates students about career opportunities within USDA, by stimulating and promoting advanced interest in, and knowledge of agriculturally related fields of study. In 2021, 21 universities are hosting AgDiscovery programs. Learn more on USDA’s Animal and Plant Health Inspection Service website, www.aphis.usda.gov/agdiscovery. USDA is accepting applications through March 25, 2021. ************************************************************************************ Research Find Avocados Support Gut Health Eating avocado as part of your daily diet can help improve gut health, according to a new study from the University of Illinois. Avocados are a healthy food that is high in dietary fiber and monounsaturated fat. However, it was not clear how avocados impact the microbes in the gastrointestinal system. The researchers found people who ate avocado every day as part of a meal had a greater abundance of gut microbes that break down fiber and produce metabolites that support gut health. They also had greater microbial diversity compared to people who did not receive the avocado meals in the study. The study included 163 overweight or obese adults between 25 and 45 years old. They received one avocado meal per day to consume as a replacement for either breakfast, lunch, or dinner. One researcher adds avocados are “a really nicely packaged fruit that contains nutrients that are important for health. Our work shows we can add benefits to gut health to that list.
| Rural Advocate News | Thursday December 17, 2020 |
Washington Insider: Brexit Tensions Continue The New York Times reported last weekend that Britain and the European Union “passed another do-or-die moment in their trade negotiations with neither a breakthrough nor a breakdown.” As a result, the Times said there were distinct glimmers of hope that the two sides might at last find a way to bridge the gulf between them. Prime Minister Boris Johnson and the president of the European Commission, Ursula von der Leyen, agreed to extend the negotiations after what both described as a “useful” midday phone call. She dropped her previous admonition that Britain and the European Union were far apart on key issues. Johnson struck a warier tone, noting that the gaps remained significant and that Britain should prepare for a failure to reach a deal by the Dec. 31 deadline. But even he said that British negotiators would not walk away from the talks and reaffirmed, “there is a deal to be done, if our partners want to do it.” Tellingly, neither set a fresh deadline – though as a practical matter, the two sides have only until New Year's Eve, which is when the transition period to hammer out a long-term trade agreement expires. After that, Britain and the European Union would begin levying tariffs on each other's goods. Mujtaba Rahman, an analyst at the political risk consultancy Eurasia Group, said, “Today was the moment where it all could have gone wrong—and it didn't. Both sides have committed to avoiding a cliff edge, which means the likelihood of an agreement has now risen substantially,” he added. At the heart of the talks is the thorny question of how the European Union would respond if Britain diverged from the bloc in its industrial policy. Both sides initially staked out a hard line: Brussels insisting it had to be able to defend the single market from unfair competition from British companies getting state support; and the British declaring it was a matter of sovereignty to be free to chart their own course. In recent days, however, the European Union has softened its stance, the Times said. Rather than automatically impose tariffs to counteract British divergence, the two sides are negotiating other ways to resolve disputes over state aid and other competition policies. That could allow Johnson to claim a victory, which would help him sell a trade agreement to the Brexiteers in his Conservative Party. But Britain has given ground in important respects as well. On Wednesday in Parliament, before he traveled to Brussels for a dinner meeting with von der Leyen, Johnson dismissed the European Union's position as an unacceptable infringement of British sovereignty. Brussels, he said, wanted to ensure that “if they pass a new law in the future with which we in this country do not comply or do not follow suit, they should have the automatic right to punish us and to retaliate.” Johnson's use of the word “automatic” was noteworthy because it suggested there were other ways the two sides could resolve such disputes. Before that, British negotiators had refused to accept any other safeguards against future divergence except those in standard trade agreements, though they did commit not to water down existing rules on labor and environmental standards. “It seems as if the UK has conceded the principle,” said David Henig, director of the UK Trade Policy Project at the European Center for International Political Economy, a research institute. “There is a difference between having a difference on a point of principle and trying to find a practical solution that satisfies both sides.” None of this means the talks could not still run aground. Time is short, the two sides still need to work out a politically fraught deal on fishing quotas, and negative blowback from pro-Brexit Conservative lawmakers could yet persuade Johnson to pull back from endorsing the difficult details. “If Ursula is optimistic, then that's great,” Johnson told the press. “But as far as I can see, there are some serious and very, very, very difficult issues that currently separate the UK from the EU.” Britain, he said, had made extensive preparations for a failure in the talks, after which its trade with the European Union would default to World Trade Organization terms. Some analysts dismissed that as a calculated effort to take a tough posture before the inevitable compromises to come. Henig, the analyst, said the prime minister was under intense pressure from British business not to risk a trade war in January over Britain's theoretical right to take measures for which it currently has no plans. Chris Patten, a former chairman of the Conservative Party and governor of Hong Kong from 1992 to 1997, accused Johnson of being on a “runaway train of English exceptionalism.” The prime minister, he added, was “not a Conservative,” in the sense of being committed to alliances, institutions or the rule of law, but an “English nationalist.” Johnson, for his part, said he was eager to negotiate directly with Europe's two most powerful leaders, Chancellor Angela Merkel of Germany and President Emmanuel Macron of France. But both have refused to engage with him, leaving von der Leyen and her chief negotiator, Michel Barnier, in control of the talks. That has denied Johnson the opportunity to exploit divisions between the 27 members of the European Union. It has revealed, diplomats say, Britain's misconception that it could force Brussels to back down in the final days of the negotiation. So, we will see. Clearly, there is significant willingness to negotiate, even though the issues are very tough. And the outcome of the discussions are important to global agriculture and should be watched closely by producers as they proceed, Washington Insider believes.
| Rural Advocate News | Thursday December 17, 2020 |
Ag Provisions COVID Aid The package of COVID aid that congressional leaders are working on and are aiming to finalize to include with a funding plan for Fiscal Year (FY) 2021 continues to contain help for agriculture. The package would authorize $13 billion in farmer aid and $13 billion in food assistance, including a temporary 15% increase in SNAP benefits. It also provides $10 billion for broadband improvements. Another provision would allow farmers and other small businesses that obtained Paycheck Protection Program (PPP) loans to deduct from their tax obligations the same expenses they used to qualify for loan forgiveness. Some maintain the amounts in the package are not enough to cover ag losses at this stage. That will likely mean a push for additional financial assistance for the sector will continue next year.
| Rural Advocate News | Thursday December 17, 2020 |
Australia Takes China To WTO Over Barley Tariffs Australia is opting to pursue remedies at the WTO over China's imposition of tariffs on barley from Australia. Simon Birmingham, Australia's trade minister, said that following Australia taking China to the World Trade Organization (WTO) over barley tariffs, Australia reserved the right to appeal several other Chinese trade sanctions levied against Australian coal, beef, timber and lobsters in recent months to the WTO. Beijing imposed tariffs of 80% on Australian barley after bilateral relations deteriorated, but China contends Australian barley imports were sold below cost in China and due to subsidies to Australian growers. Australia has acknowledged that the WTO process could take years to resolve and noted that China had refused to engage with it over the expanding range of trade disputes. Beijing has already imposed sanctions on barley, beef and wine imports following Canberra's call for an inquiry into the origins of the COVID-19 pandemic that first surfaced Wuhan. Interestingly, China has sought barley from other global suppliers but has not yet turned to the U.S. even though the two sides reached agreement on barley trade as part of the Phase One trade deal between the two countries.
| Rural Advocate News | Thursday December 17, 2020 |
Thursday Watch List Markets As usual, 7:30 a.m. CST on Thursday is a busy report time with weekly export sales, weekly U.S. jobless claims, November U.S. housing starts and an update of the U.S. Drought Monitor all set for release. The U.S. Energy Department reports on natural inventory at 9:30 a.m. CST. Traders will continue to keep a close watch on South American weather forecasts and any export news. Weather Thursday features dry conditions across all primary crop areas. A heavy snowstorm in the Northeast will dominate the headlines. A system bringing snow and mixed precipitation to the western U.S. is indicated to be a rainmaker in the Midwest during the coming weekend.
| Rural Advocate News | Wednesday December 16, 2020 |
Employment Outlook Promising for New College Graduates in Agriculture A report last week from USDA’s National Institute of Food and Agriculture and Purdue University shows a strong job demand for new college graduates with degrees in agricultural programs. U.S. college graduates can expect approximately 59,400 job opportunities annually between 2020 and 2025. This reflects a 2.6 percent growth from the previous five years. Employer demand will exceed the supply of available graduates with a bachelor's degree or higher in agriculture-related fields. A USDA NIFA spokesperson says students studying agriculture "have made a sound career choice and will graduate into a strong and growing job market in the years ahead." Graduates earning degrees with emphasis in food, agriculture, renewable natural resources and the environment will account for 61 percent of the annual supply pool. Most employment opportunities will be in business and management at 42 percent and another 31 percent in science and engineering. Openings anticipated in education, communication and government will make up 14 percent, and 13 percent will be in food and biomaterials production. ************************************************************************************ 2020 Land Market Ending with Optimism The 2020 land market closes with optimism, according to Farmers National Company. The year started with land prices strengthening before COVID-19. The pandemic paused the land market before interest returned in the summer. Now, Randy Dickhut of Farmers National Company says an improved outlook for grain prices and government aid increasing farm income has resurrected interest in farmland. The optimism has fueled the demand for good cropland and the resulting surge in prices as farmers are aggressively buying land while investors also enter the market. The rising demand to buy land is evidenced by the fact that real estate sales for Farmers National Company during October and November were up 49 percent from the same time a year ago. Dickhut says rising demand with a low supply normally brings higher prices in a marketplace, which is what is happening in the ag land market. Sales prices for cropland are rising and for some sales, reaching levels last seen in 2012. ************************************************************************************ APHIS Changes Approach to Fight Emerald Ash Borer The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service is changing its approach to fight the emerald ash borer beetle. Infestation of the borer beetle has spread through much of the United States and is highly destructive to ash trees. This week, APHIS announced a final rule that removes the federal domestic emerald ash borer quarantine regulations that the agency says have proved ineffective and will redirect resources to more promising methods. Removing the quarantine regulations ends APHIS' domestic regulatory activities, including issuing permits, certificates and compliance agreements, making site visits, and conducting investigations of suspected violations. The agency has worked to identify more effective and less intrusive methods, such as rearing and releasing biological control agents. The results have already proved effective, according to USDA. The final rule and the response to comments was published Tuesday in the Federal Register and will be effective on January 14, 2021. ************************************************************************************ Zoetis Helping Iowa Pork Serve Hungry Iowans A program begun in late April to generate pork donations to hungry Iowans is receiving a generous boost to keep meat on their plates. Zoetis, a leading animal health company, is donating $25,000 to Pass the Pork for processing and storage of ground pork that will provide 40,000 servings of pork. Pass the Pork is a coordinated program with support from the Governor's Feeding Iowans Task Force, the Iowa Food Bank Association, the Iowa Department of Agriculture and Land Stewardship, the Iowa State University Meats Laboratory, and the Iowa Pork Producers Association. When Pass the Pork was first launched, it was also targeted at helping Iowa pork producers find market outlets for pigs backing up on farms because of food supply chain disruptions. Currently, those disruptions have dissipated. However, Iowa Pork President Mike Paustian says, “COVID-related challenges have deepened food insecurity.” The Iowa Food Bank Association says there has been a double-digit increase in need at food banks. ************************************************************************************ Wisconsin Health Department: Skip Holiday Tradition of Raw Meat Sandwiches The Wisconsin State Health Department is urging citizens to avoid a so-called holiday tradition in the state. Through social media this week, the department says, “there's one holiday tradition you need to pass on: raw meat sandwiches.” The sandwiches, sometimes called tiger meat, cannibal sandwiches or South Dakota steak tartare, are considered a holiday tradition by many families, according to state officials. The raw meat is typically served with crackers. The tradition appears in midwestern states with significant German populations, such as the Dakota's, Wisconsin and Minnesota, among others. However, the sandwiches, which include raw ground beef, raw egg and onions, along with a mix of spices, poses a threat for salmonella and other bacteria. The state health department says ground beef should always be cooked to an internal temperature of 160 degrees Fahrenheit. The warning made national media rounds early this week. However, eating raw ground beef or pork dishes is common in Germany and other foreign nations.
| Rural Advocate News | Wednesday December 16, 2020 |
Washington Insider: Review of Main Potential Policy Changes Under Biden Perhaps the main political game in Washington these days is to guess what the new administration's main policy changes will be. First of all, following Monday's Electoral College vote, the press is widely reporting that the president-elect's top advisers are convinced that he will enter the White House with a “clear mandate” for change. “Joe Biden won decisively,” campaign manager Jen O'Malley Dillon, who'll join the Biden White House as deputy chief of staff, said. “If you look across any metric that we could put together, it is hard to see anything but a historic victory for the president-elect.” Campaign chief strategist Mike Donilon pointed to a post-election poll from Gallup that put Biden's approval rating at 55%. “There's a very strong story that is running through this country, which is the country wants to come together. And the president-elect is determined to lead the country to do that,” said Donilon, who'll be a senior White House adviser. Bloomberg, and others, are attempting to assess expectations for expected policy shifts by the new administration and are reporting, that because so many of President Donald Trump's initiatives were accomplished by executive order, a number can be changed quickly. Fighting the pandemic and stimulating the economy are big, immediate challenges. However, President-elect Biden's bolder ideas face uphill battles in a closely divided U.S. Senate, so most analysts are offering a “partial tally of his goals,” at this time. Perhaps the broadest of these is the way “America powers itself,” These changes are seen as a “costly, heavy lift” to get through Congress, even as they are seen as a good way to stimulate the economy. Clearly, the new administration's climate agenda is seen as driving its approach to numerous energy issues, many of which face risk of rejection or longer approval times. Perhaps first, the new administration is expected to rejoin the Paris Agreement on global warming through which almost 200 countries have pledged limits on emissions of carbon dioxide and other greenhouse gases. It also likely would put in place efforts to make the U.S. electricity system carbon-free by 2035, meaning if there are any emissions, they will be captured. That will require much more solar and wind power and a revamp of the electrical grid since coal and natural gas still produce more than 60% of U.S. electricity. Another major change would affect immigration, which Biden sees as “an irrefutable source of our strength.” He can tweak some of those policies on his own, but his more ambitious plans would require the approval of Congress, which hasn't passed a major immigration law since 1986. The new administration is expected to stop spending on a U.S.-Mexico border wall and direct funds instead toward higher-tech border enforcement. In addition, it likely would raise to 125,000 the number of refugees allowed into the U.S. in 2021, up from the current cap of 18,000 in 2020. In addition, it would be expected to increase the number of employment-based visas beyond the current annual cap of 140,000. And, it likely would restore protections blocking deportation of 660,000 undocumented immigrants brought to the U.S. as children, a group known as Dreamers — and it would be expected to create a pathway to citizenship for the estimated 11 million undocumented immigrants living in the U.S. On the matter of taxes, the new administration says it will attempt to raise taxes on several fronts to finance its domestic agenda but that only people earning $400,000 or more would pay a higher amount. Bloomberg notes that the best chance of implementing the tax-hike plan would be if Democrats win in the 2022 congressional midterm elections. Biden sees the U.S. “once again at the head of the global policy debate, leading the world to address the most urgent global challenges.” In addition, the president-elect has vowed to recommit the U.S. to multinational institutions, including the North Atlantic Treaty Organization, and it would revoke the current plan to quit the World Health Organization. However, don't expect a swift reversal of Trump's “America First” policy on trade, Bloomberg says. “There is no going back to business there,” it noted. However, it expects to re-evaluate Trump's tariffs on Chinese goods and to work with U.S. allies, with the goal of exerting “collective leverage” to force China to change its economic practices. Biden has promised union members he'd be the “strongest labor president you've ever had.” And, on some key social issues, while serving as vice president, he got out ahead of President Barack Obama in publicly supporting same-sex marriage. He promised to extend existing civil rights laws to ban discrimination in employment, housing and other areas against LGBTQ Americans—and, he would give the 21 million Americans who work for the federal government and state governments the right to unionize, which currently exists only in some states. There is much more being considered, including the plan to more than double the federal minimum wage in stages to $15 by 2026, up from $7.25, where it was set in 2009 — and, the almost casual promise to spend $50 billion in the first year to repair roads, highways and bridges. However, there almost always is a “learning period” for new administrations during which the newcomers find that many more of the changes they have promised fit into the “slow and difficult” category than are “quick and easy.” This is a sorting process producers should watch very closely as the debate and implementation process evolves, Washington Insider believes.
| Rural Advocate News | Wednesday December 16, 2020 |
USDA Chief Economist Johansson To Depart, Replaced By Former World Board Chief Meyer USDA Chief Economist Rob Johansson will leave his post at USDA at the end of January to become Associate Director of Economics and Policy Analysis for the American Sugar Alliance, USDA Secretary Sonny Perdue announced Monday. And, former World Board chairman Seth Meyer, currently the associate director for the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri, will become the new USDA Chief Economist. The move had been rumored previously first reported by Pro Farmer. Johansson will work alongside American Sugar Alliance's Director of Economics and Policy Analysis, Jack Roney, to provide domestic and international sugar market analysis and evaluate the farm and trade policies that affect U.S. sugar producers. Roney, who has worked with the industry for more than 30 years, plans to retire in August 2021, at which time Johansson will assume the Director role.
| Rural Advocate News | Wednesday December 16, 2020 |
CFAP 2 Payments Near $12.5 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) totaled $12.47 billion as of December 13, including $6.02 billion in acreage-based payments, $3.3 billion for livestock, $1.98 billion in sales commodities, $1.13 billion for dairy, and $45.0 million for eggs/broilers. USDA said that 838,689 applications were approved. Payments for nine commodities total $100 million or more include corn ($3.29 billion), cattle ($2.69 billion), sales commodities ($1.91 billion) soybeans ($1.26 billion), milk ($1.13 billion), wheat ($681.5 million), hogs/pigs ($522.2 million), upland cotton ($290.3 million) and alfalfa ($135.0 million). Payments in nine states total $500 million or more are led by Iowa ($1.12 billion), California ($894.8 million), Nebraska ($823.2 million), Minnesota ($795.0 million), Illinois ($777.9 million), Texas ($645.5 million), Kansas ($637.1 million), South Dakota ($542.4 million), and Wisconsin ($504.5 million). Under the CFAP 1 effort, payments totaled $10.53 billion with 652,179 applications approved.
| Rural Advocate News | Wednesday December 16, 2020 |
Wednesday Watch List Markets Early Wednesday, the latest South American weather forecasts still get top attention from traders, along with any export news that develops. At 7:30 a.m. CST, there is a report on U.S. retail sales in November. The U.S. Energy Department releases its weekly report of energy inventories at 9:30 a.m., including weekly ethanol production. At 1 p.m. CST, the Federal Reserve concludes its two-day meeting with a statement, explaining any changes in policy the Open Market Committee deems suitable. Weather Rain will cover most of the southeastern U.S. Wednesday, interfering with the remnants of cotton harvest. We'll also see snow in the Ohio Valley producing transportation slowdowns. Dry conditions will be in place elsewhere. Headlines the next few days will be dominated by a developing snowstorm in the northeastern U.S.
| Rural Advocate News | Tuesday December 15, 2020 |
Bill to Curb Rural Suicides Awaits Signature Legislation to curb the rising rate of farmer suicides awaits the president's signature as part of the National Defense Authorization Act. However, the bill's future is still uncertain as President Donald Trump over the weekend threatened to veto the bill, despite the appearance of veto-proof support from lawmakers. The Seeding Rural Resilience Act was included in the defense bill. The legislation creates three initiatives aimed at curbing the growing rate of suicides in rural America. The bill Implements a Farmer-Facing Employee Training Program to the Department of Agriculture to provide employees with voluntary stress management training. The bill also forms a partnership between the Department of Health and Human Services and USDA to create a $3 million campaign to increase public awareness of farm and ranch stress. Finally, the bill directs the Secretary of Agriculture to work with state, local and other stakeholders to collaborate and determine best practices for responding to farm and ranch mental stress. ************************************************************************************ RFA: Ethanol Industry Needs Support as COVID-19 Losses Near $4 Billion With COVID-19 cases on the rise again, state and local governments are taking additional actions to limit travel and promote social distancing. In turn, the Renewable Fuels Association says consumption of ethanol-blended gasoline is rapidly falling again. RFA says the decline is threatening to derail an already fragile economic recovery in the ethanol industry. Through November, U.S. ethanol producers had already lost $3.8 billion since the start of the pandemic. In response to reduced travel and lower fuel demand, ethanol producers slashed production by two billion gallons between March and November, and cuts are expected to continue for months to come. In the first week of December, consumption of both gasoline and ethanol fell to their lowest points since May, according to data from the Energy Information Administration. RFA President and CEO Geoff Cooper says that as Congress debates another COVID-19 relief package, “we implore policymakers to consider the devastating economic impact the pandemic has had on renewable fuel producers.” ************************************************************************************ Harden to Take Vilsack’s Role at USDEC Krysta Harden will take the role of CEO of the U.S. Dairy Export Council, if Tom Vilsack, who currently serves as CEO, is confirmed as the Next Agriculture Secretary. Harden served as Deputy Agriculture Secretary from 2013 to 2016, and is the current chief operating officer at the USDEC. Vilsack previously served as Agriculture Secretary during the entirety of the Obama administration. Chair of the organization, Larry Hancock, stated in a news release, “Vilsack will continue to serve fully in his role as president and CEO of USDEC until he is confirmed as the secretary of Agriculture for the new administration.” Once Vilsack is confirmed as Agriculture Secretary, Harden will become CEO of USDEC. Dairy Management Inc. CEO Tom Gallagher says, “We are extremely fortunate to have Secretary Vilsack's dedication and commitment to dairy farmers over the past four years, and to have someone with Krysta's background and experience in agriculture and with USDEC ready to step into a new role.” ************************************************************************************ Roberts, Stabenow Applaud Enactment of Grain Standards Reauthorization Leadership of the Senate Agriculture Committee applaud the signing of the U.S. Grain Standards Reauthorization Act of 2020. Chairman Pat Roberts, a Kansas Republican, and ranking Democrat Debbie Stabenow of Michigan, expressed their delight in a joint statement late last week. The White House announced that President Donald Trump signed the bill Friday. The U.S. Grain Standards Reauthorization Act of 2020 passed out of the Senate Agriculture Committee on June 24, the Senate on November 16, and the House of Representatives on December 2. Roberts, who is retiring, stated, “We’re ending 2020 by delivering on our promise of certainty and predictability to the federal grain inspection system.” Stabenow says, “This bipartisan reauthorization will continue our grain inspection system and protect the interests of American farmers.” The legislation has wide industry support from national and state agriculture groups. The reauthorization allows the Federal Grain Inspection Service to continue establishing official marketing standards for grains and oilseeds. ************************************************************************************ Research Shows Opportunity to Combat ASF Transmission Through Feed Mitigation New research published in the Journal of Animal Science and Biotechnology provides insight into the fight against African Swine Fever. The research, a collaborative effort between academia and Natural Biologics, characterized the antiviral effects of individual medium-chain fatty acids and glycerol monolaurate, known as GML, to inhibit ASF in feed. Animal feed and feed ingredients have recently been implicated as potential vectors of transmission and spread of ASF. The study says effective feed mitigation strategies are urgently needed to reduce the risk of transboundary spread and would improve prospects for global pig production. Natural Biologics President Dr. Charles Elrod says, “this research establishes the science behind a viable opportunity to curb disease transmission.” The research found GML not only killed ASF but also exhibited additional mechanisms of antiviral activity, leading to a 99.8 percent reduction in the amount of infective virus. In feed, only GML was able to inactivate ASF, working quickly in as little as 30 minutes. ************************************************************************************ CHS Foundation Partners with FFA to Support Teachers and Future Ag Leaders The CHS Foundation, funded by charitable gifts from CHS, announced a more than $4 million commitment over the next three years to the National FFA Organization. The effort will include annual funding for programs the CHS Foundation has had a history of supporting. These include the Teach Ag Campaign, which focuses on ag teacher retention and recruitment, educating students on the value of the cooperative system through My Local Cooperative curriculum participation in proficiency awards and National FFA Convention, and support of 17 state FFA associations. New focus areas for the CHS Foundation include dedicated funding for students’ supervised agricultural experiences, or SAEs, and state officer leadership programs. National FFA Foundation President Molly Ball says, “We are excited to see the CHS Foundation recognizes the key role our educators play in creating the next generation of leaders.” CHS Foundation has been a generous partner with the National FFA Organization for more than 40 years.
| Rural Advocate News | Tuesday December 15, 2020 |
Tuesday Watch List Markets Tuesday's reports are a little busier than usual with the Federal Reserve's report on industrial production in November due out at 8:15 a.m. CST and followed by the monthly soybean crush estimate from the National Oilseeds Processors Association later Tuesday morning. The Federal Reserve starts a two-day meeting and is expected to repeat its commitment to keep interest rates near zero at Wednesday's conclusion. Weather Snow is in store for the southwestern Plains Tuesday, offering some snow cover for dormant wheat. We'll also see periods of snow in the northwestern U.S. crop areas. Dry conditions will be in place elsewhere.
| Rural Advocate News | Tuesday December 15, 2020 |
Washington Insider: New US Trade Ambassador Introduced Bloomberg is putting an unusual light on the president-elect's proposed trade chief, Katherine Tai, who is appearing before Congress this week. The report says that there is a view that U.S. trade policy is getting a new guardian, but that after four years of radical policy-making in Washington, the selection will be greeted by many trading partners as a soothing event — perhaps as "the mop-up after President Trump's trade wars.” Still, Bloomberg thinks the nomination could be seen as “potentially radical in its own right,” and argues that the consensus in Washington is that trade policy is not going to be a high priority for the incoming administration — and in “the gossipy world of Washington politics,” some will see the current nomination as confirmation of that. U.S. Trade Representatives (USTRs) of the past have often had close political or personal connections to the presidents they served, but Tai is starting without any that are apparent. She also is making an unusually large leap from the staff ranks in Congress to become lead trade negotiator for the world's largest economy. She has never held elected office or worked in the senior politically appointed ranks of the executive branch. Yet Tai is arguably the most qualified person for the job right now, Bloomberg says. Especially in a Washington where the politics of trade have been shifting and there is “significant bipartisan unease with the belligerent approach Trump has taken.” As the top Democratic trade staffer on the House Ways and Means Committee, Tai is already a major player who helped steer congressional Democrats' efforts to inject strong labor provisions into Trump's renegotiated NAFTA. Her last job as a civil servant at USTR before her shift to Capitol Hill in 2014 was chief litigator in cases involving China. She not only speaks Mandarin but lived in China some 25 years ago teaching English there as a recent Yale graduate. But her most important qualification may be a new perspective on trade she seems to be ready to bring to the job. In this regard, at 46, she represents an important generational leap. If she is confirmed by the Senate, for the first time in decades the person running the U.S. trade portfolio won't be a product of the 1990s policy wars that started with NAFTA and ran through the creation of the World Trade Organization and the battles over China's 2001 accession to it. Robert Lighthizer, Trump's USTR, is often portrayed as a wily trade revolutionary. Yet he too is really a product of last century's trade battles, Bloomberg notes. He first made his name as a deputy in the Reagan administration. His biggest innovation was to bring back “dormant tariff-yielding mechanisms” from that era. Tai, by contrast, is unencumbered by policy positions she took in the past. Moreover, she belongs to a corps of “Democratic trade wonks” who have spent the past four years deliberating how Trump could have outflanked them on trade and considering how to respond. In rare public comments in August, Tai made what she herself flagged as an “oblique” criticism of Trump's tariff-driven approach. It was that U.S. approach to trade needed to be more “strategic.” That is polite criticism. But what Tai went on to say was that the U.S. needed less weaponized tariffs and more investment in strategic industries, or industrial policy. Tariffs were “defensive” instruments, she said, while the U.S. needs to play offense by doing more at home. However, Bloomberg notes that it is still “hard to get a handle on what exactly a Biden trade or broader international economic policy will look like.” In recent writings some key members of the Biden team have laid out a broader vision built around a robust defense of American interests, though the precise mechanisms for doing that remain largely undefined. On Friday as he presented Tai, the President-elect offered what amounted to two campaign slogans: “Trade will be a critical pillar of our ability to build back better and carry out our Foreign Policy for the Middle Class.” Trump's rallying cry was, of course, America First. Biden has promised to rebuild frayed trade and security relationships with allies. Which means Tai now has to balance that promise with a defense of the American middle class' economic future and to help create a new U.S. trade policy to do so. So, we will see. It is expected that Tai's congressional testimony will add significant detail to the emerging new trade policies that Bloomberg — and, others — now see as so murky. In addition, at least some of the changes proposed may test expectations that the new policies will play a smaller role in future policies. In today's highly competitive global economies, trade policy likely will be extremely import and producers should watched closely as potential shifts are debated and begin to emerge, Washington Insider believes.
| Rural Advocate News | Tuesday December 15, 2020 |
Trump Administration To Unveil Proposed RFS Levels Soon The Trump administration now plans on releasing its notice of proposed rulemaking (NPRM) yet this month on the proposed levels for 2021 biofuel and 2022 biodiesel levels under the Renewable Fuel Standard (RFS). EPA had in May forwarded its proposed levels to the Office of Management and Budget (OMB) for review, but they remain listed as being under review. In the meantime, indications are that EPA has opted to re-work the proposed levels to account for the impacts of the pandemic. It is not clear what the new NPRM from EPA will say, but the regulatory agenda which revealed the action noted, “Relying on statutory waiver authority that is available when the projected cellulosic biofuel production volume is less than the applicable volume specified in the statute, EPA is establishing volume requirements for cellulosic biofuel, advanced biofuel, and total renewable fuel that are below the statutory volume targets.” The action puts EPA on a path to finalize the levels in June 2021 under the Biden administration. That could result in one of the first biofuel decisions that the Biden administrations will have an influence on.
| Rural Advocate News | Tuesday December 15, 2020 |
Biden Had to Convince Vilsack to Come Back to USDA Joe Biden held an event Friday in Delaware to publicly introduce some of his cabinet choices for domestic roles, including USDA and the Office of the U.S. Trade Representative (USTR). That included, of course, Tom Vilsack to again head up USDA. Biden noted that Vilsack “wasn't anxious to come back” to be USDA Secretary. “He wasn't looking for this job, but I was persistent,” Biden said. Vilsack has continued to face backlash from some corners, particularly from black farmer representatives who contend Vilsack did not do enough in his first stint atop USDA. The situation is expected to translate into a higher focus on race issues relative to USDA and farmers.
| Rural Advocate News | Monday December 14, 2020 |
NASS to Reinstate the Agricultural Labor Survey The USDA’s National Agricultural Statistics Service intends to reinstate the Agricultural Labor Survey, suspended on September 30. NASS will mail the questionnaires and collect data immediately for the survey period that was originally scheduled for October of 2020. The report will be published on February 11 and will include data for the July and October 2020 reference dates. The report will include annual average wage rates, hired workers, and hours worked. Fruit Growers News says the agricultural farmworkers advocacy group Farmworker Justice issued a press release protesting the original September 30 action by the Trump administration, canceling USDA’s Farm Labor Survey of agricultural employers that’s used by the Department of Labor to set the main minimum wage under the H-2A guestworker program. After the suspension was challenged in federal court, a preliminary injunction was issued and ordered NASS to reinstate the data collection. NASS says in the Federal Register that if the court’s order is modified or dissolved in the future, NASS will publish a subsequent notice informing the public of that development as well as NASS’s intentions regarding further information collection. ********************************************************************************************** Biden Nominates Tai to be New U.S. Trade Representative President-elect Joe Biden nominated Katherine Tai to be the new U.S. Trade Representative. She’s been the chief trade counsel for the House Ways and Means Committee since 2017. Tai previously served in the Office of the U.S. Trade Representative as the chief counsel for China Trade Enforcement. Howard “A.V.” Roth (Rowth), National Pork Producers Council President, says her deep trade experience in Congress and the executive branch will serve her well as the next U.S. Trade Representative. “Opening new and expanding existing markets for U.S. pork exports are vital to the continued success of the U.S. pork industry,” he says. “We look forward to working with her on numerous trade-related issues.” American Farm Bureau President Zippy Duvall is also pleased with Tai’s selection. “America’s farmers and ranchers rely on a fair marketplace to compete globally, and it’s more important than ever for them to have an ally fighting on their behalf,” Duvall says. “Ms. Tai has deep trade experience and a solid understanding of the need to enforce existing trade agreements while working with our trade partners to expand market access overseas.” ************************************************************************************ USDA Issues Final Packers and Stockyards Act Rule The USDA’s Ag Marketing Service issued its final rule on the Packers and Stockyards Act. The Trump administration says the final rule establishes the criteria to determine whether an undue or unreasonable preference or advantage has occurred in violation of the act. The Hagstrom Report says the rule was published Friday in the Federal Register. North American Meat Institute President and CEO Julie Anna Potts says the rule recognizes the importance of marketing agreements and other tools used by producers and packers and provides some clarity regarding the criteria the Secretary will consider when reviewing those tools. “However, it also introduces some uncertainty into the use of those tools by allowing consideration of other undefined factors,” she says. National Farmers Union President Rob Larew says the rule fails to protect farmers from discriminatory practices. “In their relationship with meat packers and processors, family farmers have almost no bargaining power, he says. R-CALF USA CEO Bill Bullard says, “The final rule undermines the purpose of the Packers and Stockyards Act by providing packers with a list of ‘safe-havens’ they can employ anytime they face allegations of violating the undue and unreasonable preference section of the act.” The National Sustainable Ag Coalition says the new rule fails to advance any meaningful reforms. *****************************************t***************************************************** Growth in Farm Tractor Unit Sales Continues in the U.S. and Canada Farm tractor and self-propelled combine unit sales continued to grow across the U.S. in November. Data from the Association of Equipment Manufacturers also shows small to mid-size units continue their sales growth in Canada. Total farm tractor sales in the U.S. rose 41 percent in November when compared to last year, while U.S. self-propelled combine sales grew 33 percent. U.S. four-wheel-drive unit sales nearly doubled in November, up almost 92 percent to 201 units, now up 4.7 percent year-to-date. 100-plus horsepower unit sales also rose in November, up 24 percent, which keeps sales for the big units in positive territory for the year at up 1.2 percent. Total year-to-date farm tractors out the door are up 16 percent in 2020, while combines are now up 6.4 percent on the year. Canadian tractor sales saw their biggest jump in the under-40 horsepower units. “On the whole, this sales report continues the generally positive trends we’ve seen since April,” says Curt Blades, Senior Vice President of Ag Services at AEM. “The trend includes growth in the smaller units, while the bigger units are following along a little more slowly.” ********************************************************************************************** United Soybean Board Elects Dan Farney as New Chair United Soybean Board farmer-leaders elected Dan Farney of Morton, Illinois, as the 2021 USB Chair. “What an honor to get selected by my fellow farmers to lead the soy checkoff next year,” says Farney. “I’m so proud of our accomplishments but look forward to going a step further to increase the value and preference for U.S. soy.” USB leadership, with oversight from USDA, guides the activity of the national soy checkoff per the strategy outlined by the 78-member board. “As stewards of the soy checkoff, we are committed to research and market development on behalf of all soybean farmers that strengthens the resilience of U.S. soybean production,” Farney says. “This ranges from developing new customers abroad to building demand domestically through animal agriculture, human consumption, biodiesel, and industrial uses for over 1,000 products on the market.” The USB farmer-leaders also elected ten other farmer-leaders to serve as members of the USB Executive Committee during their annual meeting December 9-10. USB continues to focus on three priority areas for investment: meal, oil, and sustainability. During the annual meeting, USB CEO Polly Ruhland said soybean farmers are the definition of resilient. “You can knock them down, but you certainly can’t count them out,” she says. “The checkoff is a reflection of that spirit.” ********************************************************************************************** ASA Elects 2021 Governing Committee During their annual meeting, the American Soybean Association Board of Directors elected the leaders who will guide the organization through the changing policy landscape on Capitol Hill. Kevin Scott of South Dakota will serve as the 2021 ASA President. Scott previously was the vice president, secretary, and an at-large member of the ASA Governing Committee. Scott’s been on the ASA board since 2012. He and his wife Jannell farm in southeast South Dakota with a son, brother, and nephew on a fourth-generation farm that began in 1886. Immediate past president Bill Gordon of Minnesota moves into the role of ASA chairman. The former chair, Davie Stephens, rotates off the nine-member governing committee but remains on the ASA board. The board also elected Brad Doyle of Arkansas to serve as vice president, a position that has him next in line to be the association’s president in 2022. Doyle operates Berger Farms/Eagle Seed with his wife Joyce, a second-generation soybean breeder. Daryl Cates of Illinois is the secretary, and Stan Born, also from Illinois, is the treasurer.
| Rural Advocate News | Monday December 14, 2020 |
Washington Insider: Global Economic Pressure Growing Bloomberg is reporting this weekend that the “Fed's Nightmare Year isn't over yet” as U.S. job numbers “soured somewhat.” As a result, the U.S. Federal Reserve will start confronting the case for more stimulus to support the U.S. economy on Wednesday as it holds its final policy meeting of a truly momentous year. The central bank in Washington is one of at least 16 monetary institutions worldwide scheduled for important decisions this week – as the Fed “now has the specter of a marked slowdown in the labor-market's rebound to consider after the latest jobs data for November.” The recent surge in U.S. COVID-19 cases is hitting workers and curbing the broader economic recovery, Bloomberg emphasizes. Resumed stay-at-home advisories in some of the biggest U.S. cities, such as Los Angeles and Chicago are seen as blows to businesses still reeling from lockdowns imposed at the start of the pandemic. That may push the Federal Open Market Committee to debate changes to its bond-buying program or alter its guidance for future purchases, Bloomberg notes. Officials will also update quarterly forecasts for economic growth, unemployment, inflation and for their target interest rate, which is expected to stay near zero through 2023. These developments also could bring new focus on the U.S. Treasury Department's request that the Fed wind down several emergency lending programs—and even highlight those actions as another reason to consider providing more support to the economy in other forms. Without some of those facilities, officials may view growth risks to be worse, especially as Congress wrangles over more government aid to people and companies. “The confluence of the trajectory of the virus, the possible shape of a Biden stimulus package (if a passable version arises) and the behavior of financial markets – particularly treasury yields – could create the need for a QE adjustment in the first quarter of 2021. Recent guidance from Fed officials prior to the communications blackout period suggests they are content with policy for now, but by no means complacent,” the report said. In a scan of global economic policy trends, Bloomberg says that the Bank of England could be forced to expand its stimulus if a post-Brexit trade deal still eludes the UK while central banks in Japan, Russia and Switzerland will also face a number of other decisions. Flash PMIs in Japan, Europe and the U.S. will also provide an early glimpse of how economies weathered December. A Flash Manufacturing PMI is an estimate of manufacturing for a country, based on about 85% to 90% of total Purchasing Managers' Index survey responses each month. Any reading above 50 indicates improving conditions, while readings below 50 indicate the opposite, Bloomberg said. Ahead of the Fed decision, policy makers will get November data on industrial production and retail sales. Thursday sees jobless claims, which surged to a three-month high last week, suggesting that widening business shutdowns to curb the pandemic are spurring fresh job losses. Bloomberg emphasizes a collapse in post-Brexit trade talks could turn the BOE's Thursday decision from a policy non-event to a blockbuster must-watch. Some economists expect the central bank's first response to be accelerating the pace of quantitative easing before considering other steps. Bank of Russia Governor Elvira Nabiullina says the country is nearing the end of its monetary easing cycle after cutting interest rates to a record low. Russia has kept the market divided on whether it will cut again or hold on Friday, against the backdrop of rising inflation and remarks from Governor Elvira Nabiullina suggesting caution should prevail. Policy makers in the Czech Republic and Hungary also deliver monetary decisions next week. China's data dump on Tuesday is seen as particularly important, and Bloomberg expects that it likely will provide more evidence of the economy's strong rebound, with industrial production, retail sales and investment expected to have strengthened in November. In addition, the Bank of Japan will issue its closely watched Tankan business survey on Monday amid growing gloom among smaller firms. On Friday, the BOJ announces its policy decision, with rates likely to stay unchanged despite CPI data set to show a steeper fall in prices. The BOJ is also likely to extend special pandemic support measures for businesses. Three other Asian central banks – in Indonesia, the Philippines and Taiwan – also announce rate decisions, with economists predicting no change. In India, data at the start of the week will show inflation remains elevated, well above the central bank's target band. On Tuesday, Brazil's central bank posts the minutes of last week's meeting where it kept its key rate at a record-low 2%. Many observers expected some shift in language given a recent rise in prices – but were still surprised by the post-decision statement's hawkish tone. Mexico's ever-cautious central bank has signaled it will hold at 4.25% on Thursday and adopt a data-dependent stance with inflation again in its target range. Argentina, which was facing a third year of recession in 2020 even before the pandemic hit, will release inflation, third-quarter output and unemployment. GDP is set to show a jump from the April-June period – but price readings are likely to remain elevated and roughly 20% of registered workers have dropped out of the market. So, we will see. Amid the intense anxiety surrounding the final steps in the U.S. election, much of the world's economy is adding new worries of its own. Governments are widely engaged in intense policy fights large and small—clearly interventions and trends that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday December 14, 2020 |
USDA Publishes Final Rule On Undue Preference In Packer Relationships With Growers USDA has completed its rulemaking on an “undue preference” rule related to meat packers' business relationship with the livestock growers. The final rule, published in Friday's Federal Register, sets criteria for USDA to consider when determining whether an undue or unreasonable preference or advantage has been given to a poultry or livestock grower by any meatpacker, contractor or dealer as described under Section 202(b) of the Packers and Stockyards Act (P&SA). The rule will become effective 30 days from Friday. Under the P&SA, meatpackers, contractors or live poultry dealers are barred from making or giving “any undue or unreasonable preference or advantage to any particular person or locality in any respect.” USDA is responsible for determining whether actions constitute a violation of the P&SA. The final rule, which includes some changes from the proposed rule published in January, defines unfair treatment of producers as giving any preference or advantage that cannot be justified based on cost savings, meeting a competitor's prices, matching a competitor's terms or as a reasonable business decision. Besides those four criteria, the rule allows the USDA Secretary to “take other factors into consideration as appropriate on a case-by-case basis.” Only modest changes to the proposed rule were made in the final version. The issue has been a long-running one dating back to the Obama administration.
| Rural Advocate News | Monday December 14, 2020 |
DOJ Argues Against Supreme Court Taking Up RFS Case The issue of small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) continues to percolate, with the Department of Justice (DOJ) weighing in on whether the Supreme Court should review the 10th Circuit Court of Appeals decision that found three SREs granted were invalid as they were not continuations of prior SREs. DOJ opted not to appeal the 10th Circuit ruling, but the two companies that were affected by the decision are pursuing an appeal. “The decision below does not meet this Court's ordinary criteria for granting certiorari,” DOJ said. “The government agrees with petitioners that the question presented has important implications for the renewable fuel standard program. This case, however, would be an unsuitable vehicle for addressing the question because a decision favorable to petitioners would not change the judgment.” DOJ also argued that other “pending proceedings provide an additional reason to deny the petition in this case.” The court case could be one factor in why EPA has yet to decide on the 17 gap year SREs still pending and on 41 SREs for the 2019 and 202 compliance years combined.
| Rural Advocate News | Monday December 14, 2020 |
Monday Watch List Markets Monday marks 11 days to Christmas, getting closer to the time of year when markets don't get as much attention from traders. Among the attentive, South American weather forecasts and any export news that develops will still be watched. USDA's weekly report of grain export inspections is likely to show another week of active soybean movement at 10:00 a.m. CST and December grain futures are set to expire early Monday. Weather Dry conditions will cover most primary crop areas Monday. Temperatures will be seasonally cool to cold in northern and central areas, with some chill enhanced by snow cover. The past weekend brought snow to the Southern Plains and a rain and snow mix in the central Plains and Midwest with useful moisture for winter wheat.
| Rural Advocate News | Friday December 11, 2020 |
Ag Groups Respond to Possible Vilsack Return to USDA Several media outlets reported that President-elect Joe Biden intends to nominate Tom Vilsack to return as USDA Secretary of Agriculture, a post he held for eight years under Barack Obama. National Farmers Union President Rob Larew says family farmers face significant challenges and need a strong Secretary of Agriculture to help them make it through in one piece. “After eight years leading USDA, Tom Vilsack has the necessary qualifications and experience to steer the agency through turbulent times,” Larew says. United Fresh Produce Association CEO Tom Stenzel says, “Given COVID-19 and all its challenges, it’s vital to have experienced leaders who can hit the ground running.” Farm Credit Council President and CEO Todd Van Hoose says, “Vilsack’s comprehensive knowledge of agriculture and passion for rural America was evident during the Obama Administration, and we look forward to working with him again.” National Cattlemen’s Beef Association CEO Colin Woodall says,” Vilsack knows the issues facing cattle producers and can utilize his extensive experience to showcase the positive impact we have on food security, nutrition, and our natural resources. We look forward to working with him for the betterment of beef farmers and ranchers.” American Farm Bureau President Zippy Duvall says, “Tom Vilsack earned a reputation for rising above partisanship to serve farmers and ranchers and will continue to do so.” ********************************************************************************************** USTR Taking Action on U.S. Dairy Access to Canada Under USMCA The U.S. Dairy Export Council and the National Milk Producers Federation applaud the announcement that the U.S. Trade Representative is taking action on Canada’s dairy policies. U.S. Trade Rep Robert Lighthizer will initiate official consultations with Canada to examine the administration of its Tariff Rate Quota obligations for dairy. The two U.S. dairy organizations have long raised an alarm about the need to ensure the U.S.-Mexico-Canada Trade Agreement is fully-enforced due to Canada’s history of undermining trade agreements. Senate Finance Committee Chair Chuck Grassley and Banking Committee Chair Mike Crapo (CRAY-po) both say the Trump Administration is taking the right step for American dairy producers and farmers. One of the biggest improvements in the new USMCA provisions is providing access to Canada’s dairy market, which had unfairly restricted equitable access to American dairy for years. The two Senate Committee chairs say, “We hope our Canadian partners can resolve this issue without going to arbitration, but we are supportive of Ambassador Lighthizer’s efforts either way.” Wisconsin Senator Ron Kind says, “To create an even playing field for dairy farmers and help keep jobs in the United States, the administration must hold Canada and Mexico accountable to their trade commitments by implementing enforcement provisions.” ************************************************************************************ EPA, DOJ Against Refiner Request for Supreme Court Review of RFS Exemptions The U.S. Department of Justice filed a recommendation against a Supreme Court review of the Tenth Circuit Court’s ruling that invalidated several EPA small refinery exemptions under the Renewable Fuel Standard. The DOJ filing comes in response to a petition submitted by HollyFrontier Corporation and CVR Energy, in which the oil refiners ask the Supreme Court to review the Tenth Circuit’s January decision. The petitioners in the original Tenth Circuit Court challenge welcomed the government’s brief opposing a potential Supreme Court review of the appeals court decision. The Renewable Fuels Association, National Corn Growers Association, National Farmers Union, and the American Coalition for Ethanol will all file briefs with the Supreme Court this week. In January, the Tenth Circuit invalidated three exemptions the Environmental Protection Agency issued in 2016 and 2017 because it found the EPA had no authority to extend exemptions that had already lapsed in prior years and because EPA based the exemptions on economic hardships that were not caused by compliance with the RFS. The Justice Department says in its brief that, “The issue didn’t warrant the high court’s review and stated that the refiners’ petition asking for a review ‘should be denied.’” *****************************************t***************************************************** December WASDE Shows Lower Soybean Ending Stocks, Corn Supplies Steady The USDA released its December Crop Production and World Agricultural Supply and Demand Estimates report. USDA dropped soybean ending stocks down to 175 million bushels, 15 million bushels lower than last month due to an increase in the domestic crush. Total U.S. oilseed production for 2020-2021 is projected at 123.7 million tons, down from last month’s report. The U.S. season-average soybean price is $10.55 a bushel, up 15 cents. The December U.S. corn supply and use outlooks are unchanged from November. The projected season-average farm price is also unchanged at $4.00 a bushel. The outlook for 2020-2021 U.S. wheat this month calls for slightly smaller supplies, unchanged domestic use, higher exports, and lower ending stocks. Supplies are reduced on lower imports. Projected ending stocks dropped 15 million bushels to 862 million, 16 percent lower than last year. The season-average farm price for wheat is unchanged at $4.70 per bushel. ********************************************************************************************** OTA Asks Court to Delay Animal Welfare Suit Against USDA The Organic Trade Association requested the U.S. District Court for the District of Columbia to issue a stay of proceedings. The Hagstrom Report says that means they’re calling for a halt to further legal processing in its animal welfare lawsuit against the USDA until President-elect Joe Biden takes office. The lawsuit was filed by OTA in 2017 because of the Trump Administration’s blockage and eventual withdrawal of the final Organic Livestock and Poultry Practices rule. OTA says an odd quirk in the briefing schedule means the suit spans two administrations. Laura Batcha, OTA Executive Director, says, “We see little benefit to the court in having piecemeal briefings with arguments from two very different administrations. Common sense and fair play require the matter to be placed wholly within the new administration’s hands.” Batcha says the case includes claims of misconduct under the Trump administration that the Biden administration won’t want to defend against. ‘When it all comes down to it, the case will be resolved when Biden takes office,” she says, “and the court shouldn’t be burdened with arguments from a departing administration.” ********************************************************************************************** Purdue Report Highlights Critical Farm Issues in 2021 This past year was full of uncertainty in the agricultural markets. Challenges like a lingering trade war, weather issues, and COVID-19 combined to bring a big change to all parts of the Agricultural supply chain. Every year, experts in the Purdue University Department of Agricultural Economics review the economic conditions from the previous year and look ahead to what the ag sector can expect in the upcoming year. The findings are published in the Purdue Agricultural Economics Report Annual Outlook Issue. Brady Brewer is one of the report’s editors and analyzes trends in the financial sector. Brewer believes the agricultural economy can expect many of these same issues to influence the markets into 2021. “This year has been full of unprecedented disruptions to the agricultural economy,” Brewer says. “Even though we did see farm incomes increase, as well as an improvement in farmer sentiment at the end of 2020, there’s still an expectation that we’ll continue to see volatility and uncertainty in the agricultural economy next year.” The report also provides an outlook on farmland values, trade policy, Ag credit, the dairy marketplace, and retail food prices.
| Rural Advocate News | Friday December 11, 2020 |
Washington Insider: Vilsack Expects To Boost Farmer Optimism Bloomberg is reporting this week that the prospect of Tom Vilsack returning to oversee U.S. agriculture is drawing praise from some farmers who are hopeful the former Democratic Iowa governor will be an ally on everything from biofuels and dairy to China and climate-friendly farming. Vilsack was announced this week as President-elect Biden's pick to lead the U.S. Department of Agriculture. If nominated and confirmed by the Senate, Vilsack, who served eight years under Barack Obama, would be one of the country's longest-serving USDA secretaries. The next ag chief will arrive at the USDA in the midst of farmer receipts of a record $47 billion this year in federal aid to make up for losses tied to the pandemic and the president's trade war. The industry also is facing questions on the future of biofuels, food security and conservation at the same time Congress is set to begin work on the next Farm Bill. Vilsack's experience both in Washington and the Corn Belt is reassuring to many growers, even as he faces criticism from environmental and civil rights groups. “Vilsack is a positive for agriculture,” said Dan Cekander, a fourth-generation corn and soybean farmer in central Illinois who voted for Trump in 2016, but backed Biden this year after disappointment in the current administration's approach on corn-based ethanol. Cekander, though, said he gives Trump credit for compensating farmers on trade and pandemic-related losses, as well as for having the “guts” to take on China. A former two-term governor of the top corn-producing state of Iowa, Vilsack has spoken out against the Trump administration's Environmental Protection Agency over the thorny issue of whether some oil refiners should be exempt from annual biofuel-blending requirements. Vilsack has said the approach by Trump's EPA has left farmers with surplus corn, suppressing prices. While the EPA has the lead role over such biofuel policies, “having Vilsack as agriculture secretary would only increase the odds that those small refinery exemptions go away and contribute to more ethanol use,” said Cekander, also the founder of DC Analysis, which focuses on helping clients with the grain market. Vilsack “knows that renewable fuel policy is essential to a strong agriculture economy,” said Randall Stuewe, chief executive officer of Darling Ingredients Inc., one of the largest producers of renewable clean energy. While Vilsack is expected to reprise his role as a supporter of biofuels, Biden has promoted electric vehicles and taken a more nuanced approach to the Renewable Fuel Standard that mandates biofuel use. Vilsack could play a part in shaping the administration's electric vehicle and fuel policies, said Scott Segal, an energy lobbyist and co-chair of Bracewell LLP's Policy Resolution Group. Vilsack also said any concern that a Biden administration would shun biofuels as part of a push to electric cars is unwarranted and wildly unrealistic. “We're talking about generations that will pass before we have a vehicle fleet that is even remotely close to being all electric,” Vilsack said. Iowa Farmers Union President Aaron Lehman said Vilsack being part of Biden's Cabinet will be “tremendously important in helping on trade issues.” While it was important to address imbalances with China, Trump's trade war “put farmers on the front lines to bear the brunt of it and then try to pick up the pieces later,” Lehman said. “We would much rather be earning money from the marketplace than receiving a payment to make up for policies that have failed.” One global and domestic issue incoming administration officials will be tasked with addressing right away is climate change. Cekander said he's interested in how the USDA might use existing programs like the Conservation Stewardship Program, which provides grants to help farmers and ranchers reduce their carbon footprints. Trump has previously proposed eliminating the program. However, not everyone is a Vilsack fan, Bloomberg says. National Black Farmers Association President John Boyd Jr. said his group, which has more than 100,000 members in 46 states, had a “tough time” with Vilsack during the Obama administration in getting support for legislation aimed at addressing discrimination against Black farmers. Boyd said if Vilsack leads the USDA again he should make racial justice issues a top priority. The environmental advocacy group Friends of the Earth said in a statement it was “deeply disappointed” by Biden's selection of “an agribusiness lobbyist with a tarnished record on civil rights, consolidation, and the environment.” The most immediate issue for all agencies though will be dealing with the ongoing devastation of the COVID-19 outbreak. “We would urge Vilsack to expand nutrition assistance programs in order to ensure that millions of individuals who are facing unemployment and food insecurity are able to meet their most basic needs through the pandemic,” National Farmers Union President Rob Larew said in a statement. Vilsack's current role as head of the U.S. Dairy Export Council has given him a “front-row seat” in seeing how the pandemic has revealed the strengths and weaknesses of the country's food system, American Farm Bureau President Zippy Duvall said. “Tom Vilsack understands that the agriculture sector is far more complex than most people understand.” So, we will see. The food and ag policy environment is enormously different now than it was when Vilsack was last in charge. His administration will face enormous new challenges that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday December 11, 2020 |
USTR Welcomes UK Decision On Aircraft Tariffs With A Caveat The UK announced they will not continue the tariffs related to the WTO case over civil aircraft as of January 1, 2021, to “de-escalate the large civil aircraft conflict and come to a negotiated settlement. “The United States welcomes this decision and shares the UK's objective of reaching a negotiated resolution,” the Office of the U.S. Trade Representative said in a statement. “The United States does not agree, however, that the UK would have any authority to impose tariffs. Only the EU sued the United States at the WTO; the UK did not bring a case in its individual capacity. Therefore, the UK has no authority from the WTO to participate in any such action after it no longer is part of the EU.” The statement pointed out the U.S. sued not only the EU but also France, Germany, Spain and the UK over the airbus subsidies which resulted in the WTO authorizing U.S. countermeasures against each country and the EU.
| Rural Advocate News | Friday December 11, 2020 |
Biden Taps House Ways And Means Lawyer As USTR Katherine Tai from the House Ways and Means Committee has been tapped to be nominated to be U.S. Trade Representative for the Biden administration. In a statement, Senate Finance Committee Ranking Member Ron Wyden, D-Ore., praised Tai as a potential pick and called on Senate Republicans to process her nomination "as quickly as possible" following the inauguration on January 20. From 2007 to 2014, Tai worked USTR where she successfully prosecuted several cases on Chinese trade practices at the World Trade Organization. If confirmed, Tai, who is Asian-American, would be the first woman of color to serve as the U.S. trade representative. She is also fluent in mandarin which could be an asset in dealing with China. However, Biden has said he would not make any “immediate moves” to lift the tariffs President Trump has imposed on roughly $370 billion of Chinese imports. Biden said he would first conduct a full review of the Phase One trade deal the Trump administration reached with Beijing.
| Rural Advocate News | Friday December 11, 2020 |
Friday Watch List Markets Friday morning will find traders glued to weather forecasts for South America and watching for any export news to develop. At 7:30 a.m. CST, the U.S. Labor Department will report on producer prices, followed by the University of Michigan's consumer sentiment index at 9 a.m. Weather Snow is in store for portions of the central Plains Friday, with rain indicated for portions of the western Midwest and southeastern Plains. We'll also see periods of snow in the Northwest. Other crop areas will be dry. Rain moves into the central and southern Midwest during Friday evening with activity continuing in the Northwest.
| Rural Advocate News | Thursday December 10, 2020 |
Biden Chooses Vilsack as Nominee for Ag Secretary Several media reports late Tuesday said Joe Biden will nominate Tom Vilsack to once again be the Secretary of Agriculture, a post he held for eight years during the Obama Administration. He was also a top rural and ag policy adviser during Biden’s presidential campaign. One person familiar with Biden tells Politico that Vilsack’s previous experience running USDA was a key to the decision. Biden wants someone who can immediately tackle the hunger and farm challenges that are being made worse by COVID-19. During his term at USDA, Vilsack focused on many priorities outside the department’s primary mission of focusing on farmers. Under Vilsack, the agency took a deeper dive into other areas like rural development and nutrition programs. The USDA will play a major role in Biden’s response to climate change, which likely made the job more attractive for Vilsack to return. After years of resistance against climate change discussions, Politico says farm groups are starting to warm up to policies that give farmers incentives to capture and store carbon in their soil. ********************************************************************************************** Biofuels Coalition Challenges 2018 Small Refinery Exemptions in Court The Biofuels Coalition filed a brief challenging the Environmental Protection Agency’s decision in August of 2019 to approve 31 small refinery exemptions under the Renewable Fuels Standard for 2018. The group submitted the brief to the D.C. Circuit Court of Appeals, arguing that the EPA lacked the authority to issue such exemptions and that it acted arbitrarily and capriciously in attempting to do so. The coalition includes Growth Energy, Renewable Fuels Association, National Corn Growers Association, National Biodiesel Board, American Coalition for Ethanol, and the National Farmers Union. “Among all of EPA’s indefensible actions surrounding small refinery exemptions in recent years, the agency’s two-page decision to grant 31 waivers from 2018 RFS compliance takes the cake,” coalition representatives say. “Enough is enough.” The groups told the court that the EPA has absolutely no legal basis for continuing to destroy demand for renewable fuels, which is contrary to the intent of Congress for the RFS program. “When it adopted the RFS in 2005, Congress clearly intended for the waiver program to be temporary in nature,” they say. “But 15 years later, some refiners who’ve complied with the obligations in the past are trying to say they still need more time to comply with the current obligations.” ************************************************************************************ Free Trade Coalition Wants Chinese Tariffs Removed Americans for Free Trade is a broad coalition that includes Farmers for Free Trade. That coalition sent a letter to president-elect Joe Biden, asking him to remove the tariffs that President Donald Trump placed on Chinese imports. “Finding a way to remove the tariffs while creating an effective new, multilaterally-supported approach to China trade issues would provide an immediate economic boost to U.S. companies, especially the small and medium-sized companies,” the coalition says in the letter. “While we all agree that our trading partners must live up to their commitments, the current Section 301 China tariffs and Section 232 steel/aluminum tariffs have been a blunt instrument, imposing undue costs on U.S. employers and families.” The coalition says tariffs have increased the costs for U.S. manufacturers and importers, as well as U.S. farmers and ranchers, who they say, “are the subject of retaliatory actions and have thus seen sales and exports evaporate.” They point out that the future of U.S. trade policy must no longer be a go it alone approach. “We must work with our allies to address the systemic issues with China, which was the stated reason why the trade war started,” the letter also says. *****************************************t***************************************************** USDA Increase Certain Incentive Payments in the CCR Program The USDA is increasing incentive payments for practices installed on land enrolled in the Continuous Conservation Reserve Program. The Farm Service Agency is upping the Practice Incentive Payment for installing practices from five percent to 20 percent. Producers will also receive a ten percent incentive payment for water quality practices on land enrolled in CRP’s continuous signup. FSA administers the CRP on behalf of the Commodity Credit Corporation. “The Conservation Reserve Program provides agricultural producers and landowners with a tool to conserve natural resources on their land that is less suitable for farming,” says FSA Administrator Richard Fordyce. “We offer several CRP initiatives, including continuous CRP, which greatly benefits natural resources like water. Increasing the incentive payment gives farmers even more reason to participate in continuous CRP, one of our nation’s largest conservation endeavors.” Under continuous CRP, producers can enroll environmentally sensitive land devoted to certain conservation practices with signup available at any time. FSA automatically accepts offers, provided the land and producer meet the eligibility requirements. ********************************************************************************************** February’s Western Farm Show is Canceled Because of COVID The 2021 Western Farm Show, scheduled for February 19-21 in Kansas City, has been canceled by the Western Equipment Dealers Association, which is the event producer. Health and safety concerns related to COVID-19 are the reasons the show won’t happen next year. “Given the long history of this event as one of the Midwest’s premier farm shows, this is a very disappointing step to take,” says show manager Ken Dean. “But it’s the responsible decision for the protection of everyone involved during the current pandemic.” The Western Farm Show is one of the region’s largest indoor agricultural attractions, featuring 400,000 square feet of exhibit space filled with new farm and ranch equipment, as well as thousands of other Agricultural products and services. The event draws farmers and ranchers from all over the Midwest, and it features a low-stress livestock handling demonstration, Health and Safety Roundup, an FFA student food drive, and a Family Living Center with food, health, and décor items for sale. Dean noted that the 2021 show would have marked the event’s 60th anniversary, which will now be celebrated in 2022. ********************************************************************************************** National Chicken Council Unveils New Website The National Chicken Council announced it has a newly refurbished website, which features an easy-to-navigate interface. The website highlights the latest policy, news, and information pertinent to the U.S. broiler industry. The new site integrates information from Chicken Check-In, an online resource for consumers to learn more about how the chicken they buy is raised and processed in the U.S. The updated site includes an industry stats and facts page, which outlines many of the most relevant topics that impact the chicken industry, as well as multimedia resources for journalists, and information about the most important policy issues affecting the industry. It also provides a timeline of the industry’s history, telling the story of the U.S. chicken industry and its crucial role in feeding the country for decades, and contains a revamped industry news page. “With the new look and information, the National Chicken Council website more effectively delivers on the primary purpose of serving as a resource for our industry,” says NCC President Mike Brown. To look at the new resources available on the new National Chicken Council site, go to www.nationalchickencouncil.org.
| Rural Advocate News | Thursday December 10, 2020 |
Washington Insider: US, China Trade Ties Strong Despite Tensions Bloomberg is reporting this week that “measured by the bushel, the U.S.-China relationship has never been stronger.” Through the trade war and open hostilities at the highest political levels, hog farmers in China and crop farmers in the U.S. have become increasingly interdependent. Already America's biggest customer of soybeans and sorghum, China has recently bought an unprecedented 11.2 million metric tons of corn, up nearly 1,300% compared with pre-trade-war purchases. The American imports have helped China feed its hog herd, which is recovering faster than expected after the African swine fever outbreak that created shortages of the country's most staple protein. Meanwhile, U.S. farm incomes are at a seven-year high, riding China's demand and additional support from federal aid. Still, the current “deeper reliance” may be tenuous. As the trade war showed, markets can quickly evaporate any number of geopolitical events–an incident in the South China Sea, for example, or further activity in Hong Kong–could end with another chill on Chinese imports. Even Tom Vilsack, who is expected to be the next ag secretary and who also held that post from 2009 to 2017 and is an ex-governor of Iowa, is emphasizing the risks. He warns that “American agriculture has to be careful of putting too many eggs in the China basket. He thinks that the lesson that should be learned from the last couple of years is the need for American agriculture to continue to diversify so there's always somewhere else the products can go, other than the storage bins.” For now, purchases are so big that traders are even drawing parallels with the Soviet era's “Great Grain Robbery” and the U.S. has nearly exhausted its export capacity, according to Gregg Doud, the U.S. Trade Representative's chief negotiator for agriculture. “North of 95% of what can possibly be done in 2020 is already booked, and a huge chunk of that is soybeans to China.” The farm belt, which voted overwhelmingly for the re-election of President Donald Trump, is waiting to see how President-elect Joe Biden will approach the next negotiations with China. The past North American and Chinese trade deals, plus COVID-linked farm aid, have “sustained the agricultural economy,” said Jim Putnam, who grows corn and soy in Minnesota. “I was never a big Trump fan but he did get the Chinese attention with Phase 1,” Putnam said. “I hope that the Biden administration can keep things going.” Even if relations do strengthen, China's appetite for American crops reflects a combination of factors that won't remain static: the strength of China's post-COVID economy, the unanticipated consequences of the African swine fever recovery, and the limitations on the country's own corn production. When the disease killed roughly half the country's herd in 2018 and later, traders projected a five-year timeline for recovery. It's been far faster. The herd is now at 80% of its pre-disease levels. Also, the industry has changed, Bloomberg says. Multi-story “hog hotels” and large industrial producers have replaced the backyard farms where pigs were fed table scraps. The more professional operations mean hogs are eating more corn, soybean meal and other feed grains. “Everybody focuses on soybean trade, but as the Chinese livestock industry is professionalizing their feeding practices, it means not only the soybean meal demand will grow, but that the corn demand will grow as well,” Greg Morris, president of Archer-Daniels-Midland Co.'s Ag Services and Oilseeds unit said. Others are skeptical about the influence of the trade growth and strong sales projections that likely are guiding U.S. farmers as they decide how to allocate their land for the 2021 growing season. And, American executives worry that “only China's state-owned enterprises understand the full scale of the country's demand.” In China, an important goal is self-sufficiency, according to Xu Weiping, a chief analyst with the agriculture ministry. The country is reallocating land from non-grain crops to corn and plans to use genetically modified crops and other technologies to achieve greater self-sufficiency. It also has been developing its global supply chain. As part of its Belt-and-Road Initiative, it has heavily invested in Brazil, the world's top producer of soybeans, and in the Black Sea region. In addition, scars of the recent trade war remain. Tariffs are still in place and will be a challenge the Biden administration will eventually have to deal with, said Joseph Glauber, a former USDA chief economist. The new president will also have to tackle issues such as intellectual property and business practices, which remain on the table. “The issue has never really been about agricultural trade,” said Glauber. “The bigger issues have been outside of agriculture, and I think those are going to be the tough ones. So, we will see. Vilsack was generally regarded as a successful ag secretary with strong links to the industry built up over the years. However, the agency now has much stronger social goals that also will be challenging and increasingly important. The new administration's efforts across a range of issues should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday December 10, 2020 |
USDA Food Box Program Running Out Of Funds Early USDA's Farmers to Families Food Box program was scheduled to run through December 31, but the effort has already run out of funds or will soon be depleted in several areas of the country, according to a report in the Washington Post. The $4.5 billion program was run in four installments—$1.2 billion in the first round, $1.76 billion in the second round, $1 billion in the third round and the final round totaled $500 million. The final round for November and December did result in some non-profits being unable to participate or they received fewer food box deliveries. The effort was launched in May and provided foods to families including fresh vegetables, meat, cheese/dairy products, and other items. It is not clear that the effort will be resurrected via either additional congressional funding or by the incoming Biden administration. The Trump administration had previously proposed a food box effort in its budget submissions to Congress relative to food and nutrition program efforts, a concept that many Democrats derided at the time. But the track record for the program could bring a rethink of the effort as it more directly links consumers and farmers, utilizing non-profits to distribute the boxes. The effort has received mixed reviews in the food industry.
| Rural Advocate News | Thursday December 10, 2020 |
USTR Formally Announces Action on Canada Dairy TRQs U.S. Trade Representative (USTR) Robert Lighthizer formally announced the U.S. is exercising its rights under the U.S.-Mexico-Canada Agreement (USMCA) to address measures adopted by the Government of Canada that are contrary to the provisions of the agreement and harm U.S. dairy farmers. Specifically, the United States is challenging Canada's allocation of dairy tariff-rate quotas (TRQs). By setting aside and reserving a percentage of each dairy TRQ exclusively for processors, USTR said, “Canada has undermined the ability of American dairy farmers and producers to utilize the agreed-upon TRQs and sell a wide range of dairy products to Canadian consumers.” Lighthizer said the measures undertaken by Canada “violate its commitments” under USMCA. “We are disappointed that Canada's policies have made this first ever enforcement action under the USMCA necessary to ensure compliance with the agreement,” Lighthizer said in a statement. The notice to Canada was given to Canada's Minister of Small Business, Export Promotion and International Trade Mary Ng via a letter. If the two sides cannot resolve the issue via consultations, USTR said the U.S. “may request the establishment of a USMCA dispute settlement panel to examine the matter.”
| Rural Advocate News | Thursday December 10, 2020 |
Thursday Watch List Markets As usual, Thursday morning is busy with weekly export sales, weekly U.S. jobless claims and an update of the U.S. Drought Monitor, all due out at 7:30 a.m. CST. The U.S. Labor Department will also have a report on consumer prices in November at the same time. The U.S. Energy Department reports on natural gas inventory at 9:30 a.m. USDA presents its December WASDE report at 11 a.m. CST, followed by a Treasury Department report on the November federal budget at 1 p.m. CST. Weather Dry conditions are in store for all primary crop areas Thursday. A storm system bringing rain and snow to the southwestern U.S. will move into the southern Plains Friday with late-week rain and snow.
| Rural Advocate News | Wednesday December 9, 2020 |
Washington Insider: A British Mystery - 50 Billion Pounds is Missing The New York Times is reporting this week with some interest that while the economic turmoil wrought by the coronavirus pandemic is leaving some people in Britain counting every penny, the country's central bank is apparently having trouble keeping track of billions of pounds. A parliamentary report released last Friday said that 50 billion pounds (about $67 billion) of paper money is “missing” from the country's cash supply and that the Bank of England “seems to lack curiosity” about where it's gone. Of the more than 70 billion pounds worth of bills in circulation in Britain, the report found that only about a quarter was being spent in stores and on other purchases. That leaves the majority of the bills — which by design are not traceable — unaccounted for. The 50 billion pounds in cash may be hidden away in unreported household savings, squirreled away for a rainy day, or used for more nefarious purposes, Parliament's Public Accounts Committee said in the report, calling on the Bank of England to investigate. “50 billion of sterling notes — or about three-quarters of this precious and dwindling supply — is stashed somewhere, but the Bank of England doesn't know where, who by or what for—and doesn't seem very curious,” said Meg Hillier, the lawmaker for the Hackney South and Shoreditch areas of London and chair of the committee that produced the report. The Bank of England responded negatively to “the suggestion it was taking a laissez-faire approach to the issue.” “It is the responsibility of the Bank of England to meet public demand for bank notes. The bank has always met that demand and will continue to do so,” a spokeswoman from the central bank said last week. “Members of the public do not have to explain to the bank why they wish to hold bank notes. This means that bank notes are not missing,” the bank's statement said, somewhat oddly. The pandemic has led to a slump in cash payments, but demand for bills has risen in recent years and the pandemic has accelerated that trend, the report said. The value of paper (and polymer) bills in circulation in Britain hit a record high in July of 76.5 billion pounds. One reason might concern interest rates, which have been low for years, and were cut even further this year to boost the British economy. “With interest rates so low, it doesn't really matter whether you keep money in the bank or keep it in cash,” said Andrew Sentance, a senior adviser at Cambridge Econometrics and a former member of the Bank of England's monetary policy committee. The current base rate of 0.1 percent means “a lot of people will have more cash in their wallet than they usually have.” Still, the public accounts committee — which scrutinizes the economy and spending—is unconvinced by that explanation and is concerned that a substantial proportion of the 50 billion pounds has been siphoned off and is being used for illegal activity such as money laundering in the shadow economy, whether in Britain or abroad. “Are more of us putting money under the mattress because of COVID? It would have to be a lot of us doing that,” Hillier said in an interview on Friday. She added that the gap between notes in circulation and those actually being used “must be linked to crime.” The parliamentary committee hopes an investigation by the Bank of England may shed some light, if not on where it is being held, then at least on the factors behind the increase in demand for cash. For its part, the Bank of England said the amount of paper money being used for transactions in Britain — around 20% to 25 % of all cash in circulation — was broadly in line with other major economies. So, we will see. The British economy is under significant stress just now as it prepares for its exit from the EU, a shift with far from clear implications. In addition, the COVID fight certainly is another area of uncertainty, along with the U.S. election. Thus, U.S. producers should follow the results of this investigation closely for possible impacts on the U.S. economy as it completes its transition to a new administration with new people and policies this fall, Washington Insider believes.
| Rural Advocate News | Wednesday December 9, 2020 |
Canada Pushes Back On US Contentions On Dairy Policy The U.S. Trade Representative (USTR) informed Canada on Monday it will file enforcement action over its rules for U.S. dairy imports. Canada said it is fully within its rights to apply tariff-rate quotas (TRQs), which follow the rules laid out in the U.S.-Mexico-Canada (USMCA) trade pact that went into effect in July. “Canada's administration of its dairy TRQs is in full compliance with its commitments under the new NAFTA,” Youmy Han, spokesperson for Canada's Trade Minister Mary Ng, said. “Our government will always stand up for our dairy farmers and a strong supply management system in Canada, which ensures the viability of our family farms and the vitality of our rural areas.” Canada has 15 days to engage regarding any complaints about perishable items, such as milk, and 30 days to respond for other products. If the countries fail to reach a deal through consultations, the complainant can request the creation of a dispute settlement panel to examine the issue. USTR had yet to formally confirm the actions as of late Tuesday, but responses from the Canadian government indicate the process must be getting underway.
| Rural Advocate News | Wednesday December 9, 2020 |
US Ag Exports Surge Over $15 Billion For October U.S. agricultural exports totaled $15.13 billion in October, the start of Fiscal Year (FY) 2021, up $2.9 billion from September (23.7%), according to data from USDA's Economic Research Service (ERS). That would be the third highest monthly export total based on records dating back to the mid-1970s. The value of ag imports reached $11.62 billion for October, up $665 million from September and resulted in an ag trade surplus for the month of $3.52 billion. USDA is currently forecasting U.S. ag exports in FY 2021 to reach $152 billion and imports at a record $137 billion. In FY 2020, U.S. ag exports were $135.9 billion against record imports of $133.3 billion for a trade surplus of just $2.65 billion. USDA expects the FY 2021 ag trade surplus to surge to $15 billion on the back of strong exports as the forecast import level would notch a new record. USDA's current forecast for FY 2021 would imply average monthly exports of $12.67 billion and imports of $11.42 billion. The October result on exports marks only the third month that U.S. ag exports have been $15 billion or more based on history going back to the 1970s. The other two months were in October 2013 ($15.18 billion) and November 2013 ($15.82 billion). October and November tend to be the largest monthly totals for U.S. ag exports. As for imports, the highest monthly values do not typically come until the March-May period, tending to be above the October and November monthly totals in each of the last several fiscal years.
| Rural Advocate News | Wednesday December 9, 2020 |
Wednesday Watch List Markets Much like Tuesday, Wednesday will find traders paying attention to the latest weather forecasts for South America and looking up at 8 a.m. CST to see if USDA has an export sale announcement. The U.S. Energy Department will release its weekly energy inventory report, including ethanol production at 9:30 a.m. CST. Weather Mostly dry weather is expected across the primary growing regions for Wednesday, though some showers will move through the Pacific Northwest and across the Canadian border. Temperatures will be above normal again across almost all of the country except for the East Coast.
| Rural Advocate News | Wednesday December 9, 2020 |
Vilsack Rumored as Top Choice for Second Round as Ag Secretary Politico is reporting that Tom Vilsack may be Joe Biden’s number one choice for Secretary of Agriculture. However, the article also says the final decision isn’t made yet. The Hagstrom report quotes a source with ties to Vilsack, saying, “I think this is still very much in flux.” Vilsack was the ag secretary for eight years when Barack Obama held the Oval Office and Biden was his vice president. Vilsack is the current CEO of the U.S. Dairy Export Council. His tenure as ag secretary was during a period of record farm income and record export numbers. His Deputy Secretary, Kathleen Merrigan, spearheaded the Know Your Farm, Know Your Food Initiative. Vilsack’s USDA helped with the passage of the Healthy Hunger-Free Kids Act, which resulted in rules requiring higher quality meals at U.S. schools. Vilsack also encouraged farm groups to come together on an agreement on the labeling of foods that contained genetically modified ingredients. Progressives oppose Vilsack getting another chance at the job, saying he’s “too close to agribusiness.” More mainstream farm groups have mostly stayed out of the debate over Biden’s choice for ag secretary, but many in the past praised Vilsack’s work. ********************************************************************************************** Pork Exports Show Broad Gains in October U.S. pork exports posted broad-based gains during October, solidifying 2020’s record pace. That’s according to USDA data compiled by the U.S. Meat Export Federation. Pork exports rose eight percent year-over-year to 242,536 metric tons, with the value also increasing eight percent to just over $641 million. Exports to Mexico, Japan, China/Hong Kong, Canada, and the Philippines were substantially higher than a year ago. Shipments to Central and South America were the largest they’ve been since March. October beef exports were down slightly from last year at 107,591 MT, a .4 percent drop. The October value was $646 million, down .5 percent. However, exports to China set another new record, and volumes were above year-ago levels to Japan, Taiwan, Central America, and Africa. “While the tight labor situation continues to limit the cut and variety meat specifications available for export, red meat demand is strengthening in many critical markets,” says USMEF President and CEO Dan Halstrom. “The U.S. industry is responding positively to many challenges, and the demand dynamics for red meat are quite strong as we approach the end of 2020.” Additionally, Halstrom says when the gains made at the retail level over the past several months are combined with a stronger foodservice industry recovery, the prospects for export growth are promising. *****************************************t***************************************************** U.S. Grains Council Issues Corn Harvest Quality Report The 2020-2021 U.S. corn crop is entering market channels as 2020 comes to a close. The U.S. Grains Council’s Corn Harvest Quality Report says the crop has a higher average test weight, lower moisture, and lower total damage relative to each quality factor’s average of the previous five crops. While wet weather in April and May contributed to historic delays in planting and crop maturity in 2019, the 2020 corn crop was planted slightly ahead of the average pace of the previous five crops and experienced generally favorable conditions during the remainder of the growing season. “That resulted in both high grain quality and yield,” the report says. This year’s crop showed a higher test weight than the 2019 and five-year average results. It showed a lower average of broken corn and foreign material than last year. There was lower average total damage than in 2019 and the five-year average, as well as lower than average moisture content than 2019 and the last five years. The crop also showed higher-than-average protein concentration, lower average stress cracks, and lower average 100-kernel weight. “We offer this report to help buyers make well-informed decisions by providing reliable and timely information about the quality of the U.S. crop,” says USGC Chair Jim Raben. ************************************************************************************ Chick-fil-A Sues Chicken Producers for Price-Fixing Fast-food chain Chick-fil-A is suing a number of the biggest chicken suppliers in the country, accusing them of keeping prices artificially high. The suit names 17 defendants, including Tyson Foods, Pilgrim’s Pride, Perdue Farms, and Sanderson Farms. NBC News says Christopher Leonard, a business reporter who has investigated the poultry industry, points out that the suit means that the “retail side of the chicken industry is at war with the producers. If the chain’s suppliers aren’t following the basic principles of capitalism and competition, Chick-fil-A customers are paying more for a lower-quality product.” Chick-fil-A announced that it would begin serving antibiotic-free chicken at its restaurants in five years, and the suit alleges shortly after that took place, “a number of the defendants communicated via phone and text message to share and coordinate confidential bidding and pricing information,” details that came to light after a Justice Department investigation of the industry. The suit accuses chicken producers of using a spreadsheet called AgriStats to engage in bid-rigging in an “unlawful conspiracy” to ensure that chicken prices were artificially raised. ********************************************************************************************** Organic Farmers Association Launching Interactive Educational Calendar The Organic Farmers Association is launching a National Clearinghouse for Organic Farmer Education that highlights the online education available to organic farmers across the country. The Organic Farmers Association is implementing the clearinghouse at the beginning of the winter conference season when farmers typically attend their state or regional organic farm conferences in person. But because of COVID-19, many of those conferences have shifted to an online platform. “OFA member-organizations have exceptional educational programs, and we’ve put all of these opportunities in one interactive national calendar,” says OFA Director Kate Mendenhall. “COVID-19 has provided a few silver linings, and universal online education is one of those. Now farmers have incredible access to innovative organic farmers from the entire country.” David Colson, President of the OFA and a Maine organic farmer, says, “This is an opportunity for farmers to attend their regular conference and a conference they may have always dreamed about but haven’t had the time or travel budget to make it happen.” Organic farmers can view the online calendar by visiting the National Clearinghouse for Organic Farmer Education at www.OrganicFarmersAssociation.org/events. ********************************************************************************************** Chinese Hog Producer Trying to Build World’s Largest Pig Farm One of China’s top pig producers, Muyuan (My-YOU-ahn) Foods, is trying to raise more hogs on a single site than any company in the world. Reuters says it’s a risky investment as African Swine Fever still lingers in the country. The company began building the farm back in March and started operations at the first of 21 new buildings in September. It’s symbolic of how fast huge industrial hog facilities are replacing smaller, more traditional farms. Many of the smaller operations were wiped out by the worst animal disease outbreak in history. Corporate farms weren’t spared from ASF, but as prices rose again, they quickly recovered their losses. The company’s newest mega-farm will eventually house close to 84,000 sows and their offspring, by far the largest in the world. That’s roughly ten times the size of a breeding facility in the U.S. The company says its goal is to produce about 2.1 million pigs per year. Muyuan will spend about 40 billion yuan this year on new pig farms.
| Rural Advocate News | Tuesday December 8, 2020 |
Ag Banks Trim Farm Lending Farm loans outstanding at commercial banks declined in the third quarter and non-performing loans edged slightly higher. The Kansas City Federal Reserve says reduced lending at agricultural banks contributed most significantly to the further decline in outstanding loan balances. Alongside lower farm debt levels, delinquency rates on agricultural loans continued to trend higher at a gradual pace. Most of the recent decrease was driven by non-real estate loans, which were nearly five percent less than the previous year, the largest drop in more than 15 years. Farmland loans also decreased for the second consecutive quarter and at a faster pace than the previous quarter. The combined pullback in both loan types led to the largest decline in overall farm debt in any quarter since the late 1980s. Although the overall rate of non-performing farm loans increased, loan quality remained higher at agricultural banks. Difficulties related to the COVID-19 pandemic continued to weigh on farm lending and loan performance, but government programs also may have offset some borrowing needs and supported financial conditions for farmers. ************************************************************************************ E15 Poised to Fast-Track Climate Progress Growth Energy Monday released a new report examining the potential climate benefits of a nationwide transition from the standard ten-percent ethanol blended fuel to a 15-percent ethanol blend. The report was authored by Air Improvement Resource, Inc., a leading research firm in the area of mobile source emissions modeling and technology, at the request of Growth Energy. Based on the analysis, Growth Energy estimates that if the United States transitioned from E10 to E15 in the nation for 2001 and later model year vehicles, GHG emissions would decline 17.62 million tons per year, which is the equivalent of removing approximately 3.85 million vehicles from the road. Marketed to consumers as Unleaded 88, E15 is approved by the EPA for all light-duty vehicles model year 2001 and later, which is 95 percent of the vehicle fleet on the road today. Growth Energy CEO Emily Skor says, "the evidence is clear that higher biofuel blends will play a vital role in America's clean energy future." ************************************************************************************ NMPF Urges USDA to Extend DMC Signup Deadline The National Milk Producers Federation urges the Department of Agriculture to extend signup for the 2021 Dairy Margin Coverage to January 30, 2021. The extension, NMPF says, allows dairy farmers to make better-informed choices while giving both milk producers and USDA staff strained by coronavirus-related challenges additional time to communicate. The current signup deadline of this Friday, December 11, remains in place while USDA considers the request. NMPF President and CEO Jim Mulhern says extending the DMC deadline to the end of next month "will allow farmers to better focus on the turbulent marketing environment we now expect to see in 2021, once we are through the upcoming holiday season." DMC, the main federal risk-protection tool for dairy farmers, is projected to support producers enrolled at the maximum $9.50 per hundredweight coverage level through at least the first half of 2021, as volatile market conditions are expected to persist well into next year. ************************************************************************************ AFBF Stands-Up for Farmers in Predatory Shakedown The American Farm Bureau Federation is standing-up for hundreds of dairy farmers being targeted by predatory lawyers representing the estate of Dean Foods. The organization says Dean Foods, currently undergoing bankruptcy proceedings, has sent letters to nearly 500 dairy farmers who once sold milk to Dean Foods threatening legal action unless they refund money earned before the bankruptcy filing. American Farm Bureau Federation President Zippy Duvall says, "Shame on these predatory lawyers for bullying dairy farmers at a time when many are struggling to keep their farms running." AFBF sent a letter to the law firm managing the Dean Foods estate calling for an immediate reversal of their so-called "predatory shakedown" and threatening potential legal action if the firm fails to withdraw the letters sent to farmers. In the letter, AFBF says the letters sent to farmers "are deceptive and constitute an abuse of process that attempts to extract funds that Dean Foods is not entitled to under the threat of a lawsuit." ************************************************************************************ RJ Karney Named head of NASDA Public Policy The National Association of State Departments of Agriculture recently announced RJ Karney as its Senior Director of Public Policy. Karney comes from the American Farm Bureau Federation, most recently serving as a Congressional Relations Director. Karney will serve as the strategic leader of NASDA's public policy team during what the organization calls a period of significant growth and change for NASDA, the U.S. government, and American agriculture. NASDA CEO Dr. Barb Glenn says, "RJ's highly reputable talent and experience in government relations will bring needed leadership to NASDA as we tackle our new strategic plan." Karney says, "NASDA will be at the table for farmers and ranchers as we create relationships with a new Administration and new Congress." Karney holds a Master of Public Policy from George Mason University and a bachelor's degree in history from the Catholic University of America. NASDA is a nonpartisan, nonprofit association representing the elected and appointed commissioners, secretaries, and directors of the departments of agriculture in all fifty states and four U.S. territories. ************************************************************************************ Missouri Farm Bureau Elects Youngest State Farm Bureau President Missouri Farm Bureau Federation members elected Garrett Hawkins as its next President, taking the reins from long-time outgoing president Blake Hurst. As noted by Agri-Pulse, Hawkins becomes the youngest state farm bureau president at 40. Over the weekend, the organization elected Hawkins over Vice President Todd Hays and USDA Farm Service Agency Administrator Richard Fordyce. Hawkins has deep roots within Missouri Farm Bureau. He served as a Youth Ambassador and was active in Collegiate Farm Bureau at Missouri State University. He also served as a summer legislative intern for the organization before leading its national lobbying efforts and policy development process for nearly 15 years as the director of national legislative programs. From 2017 to 2019, Hawkins served as deputy director of the Missouri Department of Agriculture. Hawkins says, "Our family made this decision together and we intend to serve together, adding, "We believe strongly in the grassroots mission of this organization and look forward to serving its members over the next two years."
| Rural Advocate News | Tuesday December 8, 2020 |
Washington Insider: Jobs Report Without Silver Lining The New York Times, along with other urban media, are reporting that the most recent jobs report is bad news — and that the November numbers offer some clues that what was once temporary unemployment is becoming more permanent. The Times thinks the bad news in the November jobs numbers isn't in the rate of job creation, though that was pretty bad. Employers added only 245,000 positions last month, and even if you adjust for the one-time effects of temporary Census jobs being eliminated, it would take 29 more months to return to February employment levels at that rate of job creation. But at least there is good reason to expect those numbers to improve once coronavirus vaccines are widely available. The thing that is most worrying, the Times says, is what seems to be happening among the people who have lost their jobs because of the pandemic. The report offers clues that what was once temporary unemployment is becoming more permanent — in ways that, if unchecked, could do long-term damage to millions of families and to the economic potential of the United States. Although the unemployment rate fell last month, to 6.7% from 6.9%, it was for the worst of reasons: many Americans gave up even looking for work. The number of adults not in the labor force — neither working nor actively seeking work — rose by 560,000, as the labor force participation rate dropped by 0.2 percentage points. The share of prime working-age Americans working — those between 25 and 54 — was unchanged in November at 76% and remains far below its 80.5% share in February. The number of people who are not in the labor force but say they want a job is 2.2 million higher than it was in February. In addition, a growing share of the unemployed have been out of work for a long time. The number of Americans unemployed for more than 27 weeks rose by 385,000 in November. Since only September, the number of these long-term unemployed is up by 1.5 million people — a 64% increase. Together those numbers form what NYT calls a “clear pattern”: many people who lost jobs in the spring have been without work continuously since then, and some of them have given up looking. A central lesson of the grinding recovery that followed the 2008-09 recession is that these prolonged periods of unemployment (actively seeking a job) or nonemployment (not working, and also not looking) have long-term effects. Even as the economy recovered, people had experienced various forms of damage. Some people's skills became outdated. But more generally, many just lost a sense of attachment to the work force. It's much harder to find a job when you've been out of work for years than when you've been on a short-term layoff. In that recession, the share of prime-age Americans who were employed did not return to its January 2008 level until August 2019! When economists talk about what a slow, disappointing expansion that was, this is a big part of what they are referring to, NYT says. There is a good chance to avoid that fate in the recovery from the pandemic. A quick snapback in employment after widespread vaccination is possible in 2021, and it could pull many of those long-term unemployed and non-employed back into the work force quickly, after only a year or so of detachment from the rhythms of work life. This is normally the point in analyzing bad jobs reports where one points out silver linings — those little reasons for optimism that are hiding if you know where to look. However, this month, they are hard to find, the Times thinks. The data in the new numbers are based on employment levels in the week of Nov. 8-14. Various real-time data sources point to a softening in economic activity since then, as coronavirus infections have risen and the weather has turned colder, limiting outdoor dining and retail options. December employment numbers could well be worse. For a slight hint of optimism, one of the big categories of job loss that dragged down the November numbers will probably reverse. Retailers cut about 35,000 jobs, according to the official numbers, which are adjusted for the typical seasonal patterns. But if you ignore those seasonal adjustments, the sector added 302,000 jobs — stores did do holiday hiring, just less than past experience would have predicted. The good news, such as it is, is that in January this pattern should reverse itself, creating an apparent employment surge when seasonal adjustments are applied. In a miserable season for American workers, this is what counts as a cause for optimism: The people who weren't hired as temporary help at retailers this holiday season won't lose their jobs in January. But the real hope for 2021 is that enough unemployed and non-employed Americans can come back to work quickly enough that the long-lasting effects of the last scarring downturn can be prevented from recurring. So, we will see. There is hope that the struggle for yet another stimulus package will lead Congress to provide some early winter assistance, and experts say that could help — and progress toward effective vaccines does seem promising. Clearly, these are trends producers should follow closely as the annual spending package continues to be debated, Washington Insider believes.
| Rural Advocate News | Tuesday December 8, 2020 |
OMB Completes Review of USDA Final Rule On Packers And Stockyards Act Actions The Office of Management and Budget has wrapped up its review of a final rule from USDA on Undue and Unreasonable Preferences and Advantages under the Packers and Stockyards Act. The plan was sent to OMB in August, the original goal that USDA had released for the final rule to be completed. This final rule will amend the regs under the Packers and Stockyards Act by adding new regulations that specify the criteria that can be considered in determining whether conduct or action by packers, swine contractors, or live poultry dealers constitutes an undue or unreasonable preference or advantage and a violation of the Act. However, as with any rules that comes from the Trump administration at this point, they could be subject to revision by a Biden administration.
| Rural Advocate News | Tuesday December 8, 2020 |
Watch on Ag Trade Issues Dairy is expected to become the first enforcement action under the U.S.-Mexico-Canada Agreement (USMCA), with reports indicating U.S. Trade Representative Robert Lighthizer to possibly announce the action this week. Dairy interests and several lawmakers have pressed the administration to take action on how Canada has implemented its quotas on dairy. The action could be a request for consultations which would be the first step under USMCA dispute process. Under the provisions, Canada would have 15 days to respond relative to perishable items and 30 days for non-perishable items. Meanwhile, a U.S.-Brazil trade deal is also awaited. The U.S. and Brazil On September 14 set a 90-day timeline for the two countries to negotiate on issues involving ethanol, sugar and corn trade. The 90-day timeline would be reached December 14. If the two sides cannot find an agreement, then Brazilian tariffs on imports of U.S. ethanol would rise.
| Rural Advocate News | Tuesday December 8, 2020 |
Tuesday Watch List Markets Traders will continue to keep an eye on the latest weather forecasts for South America and pause at 8 a.m. CST to see if USDA has an export sale announcement. Tuesday's only official report is for U.S. productivity in the third quarter. Weather Dry weather will occur over the main crop areas on Tuesday along with temperatures mostly above normal. This will favor any non-dormant wheat in the Midwest but stress non-dormant wheat in the southwestern Plains as soil moisture continues to be lacking.
| Rural Advocate News | Monday December 7, 2020 |
Scott Makes History as First African American Chair of House Ag Committee Congressman David Scott of Georgia made history last Thursday by officially being named the first African American Chairman of the House Agriculture Committee. The Democratic Caucus approved him to lead the Committee that oversees American agriculture, forestry, nutrition, and rural development. “I’m honored to be chosen by my colleagues in the Democratic Caucus to serve as Chairman of the House Agriculture Committee,” says Scott. “I will use this historic opportunity to represent the values of our entire caucus and advance our priorities on trade, disaster aid, climate change, sustainable agriculture, SNAP, crop insurance, small family farms, specialty crops, and rural broadband.” Scott also says the fault lines between rural and urban communities are running deep and will “lead the fight” to rise and meet the challenges. Scott has been in Congress and a member of the House Agriculture Committee since 2003. In his various leadership roles on the House Ag Committee, Scott has chaired the Subcommittees on Commodity Exchanges, Energy, and Credit, as well as Livestock and Foreign Agriculture. The new House Ag Chair grew up working on his grandparents’ farm and understands the critical role ag plays in the nation’s economy. ********************************************************************************************** U.S. Ag Groups Congratulate Scott American agricultural groups congratulated Georgia Congressman David Scott on officially being named Chairman of the House Ag Committee. Farm Bureau President Zippy Duvall says, “Scott’s legislative experience, a childhood working on his grandparents’ farm, and being the first African American chosen to lead the committee all give him a unique perspective needed to tackle rural America’s challenges.” Rob Larew, President of the National Farmers Union, says, “Representative Scott has been a member of the House Ag Committee for the past 18 years and has garnered a reputation for bipartisanship.” National Chicken Council President Mike Brown is pleased that Scott is the first Georgia House member to hold the top spot. “As a committee veteran and long-time member of the Congressional Chicken Caucus, he brings a wealth of experience and knowledge of agricultural issues to the chairmanship.” The outgoing House Ag Chair, Collin Peterson of Minnesota, says, “David Scott knows very well the impact the Committee’s work has on the lives of farmers, ranchers, rural residents, and consumers in communities across the country. I’m confident U.S. agriculture is in good and capable hands.” ************************************************************************************ Peterson Would Consider Ag Secretary Post, Introduces Bill on CRP Outgoing House Ag Committee Chair Collin Peterson tells the Hagstrom Report he’s not currently job hunting. However, he has offered to assist Joe Biden in setting up his agriculture policy. Peterson spoke to reporters during a news conference about a bill he introduced to make an additional 25 million acres available over the next five years for general Conservation Reserve Program signup. Instead of a cap on the program, the bill establishes a minimum requirement of 50 million CRP acres around the nation. The signup cap is currently 27 million acres. When questioned about his potential interest in becoming USDA Ag Secretary, Peterson responded with, “I’m going to back whoever he picks. It’s not my job to pick the next Ag Secretary.” Peterson says he’s been “in the saddle” of public life for more than four decades. During a recent hunting trip with his children, they told him he “seems like a different person.” Peterson says his emotions surrounding the election are mixed, and that’s he’s not looking for a full-time, four-year job. He did tell the transition team in Washington, D.C., that he was willing to consider helping with the agricultural transition. “There are plenty of good people out there who could be the next secretary,” Peterson adds. ********************************************************************************************** NCGA Asking Farmers to Contact Congress on Next Generation Fuels Act The National Corn Growers Association is continuously looking for new and creative ways to build demand for corn through the development of new products and markets. Since 2005, NCGA says the Renewable Fuels Standard has helped promote both energy independence and a stable U.S. economy. The Next Generation Fuels Act, or H.R. 8371, is the next step in corn farmers’ efforts to build on the success of the RFS to continue growing the role of low-carbon, affordable, and renewable ethanol in the fuel supply. NCGA says not only does the legislation yield economic benefits for rural America, but it also results in commonsense environmental benefits. Congress will adjourn in mid-December, so this week is a critical time to raise awareness and build additional support for the Next Generation Fuels Act. Farmers and industry stakeholders who contact Congress now will help set the stage for the legislation to be reintroduced and considered in the new Congress in 2021. Corn farmers can learn more about the benefits of transitioning the fuel supply to high octane fuel at ncga.com/octane. ********************************************************************************************** Soybean Association, Business Groups Ask Congress to Overturn IRS Notice The American Soybean Association and 564 business groups called on Congress to overturn IRS Notice 2020-32 and allow Paycheck Protection Program loan forgiveness to be entirely tax-free. Although the Coronavirus Relief and Economic Security Act included a provision stating that any portion of a PPP loan that qualified for loan forgiveness “shall be excluded from gross income” for tax purposes, the IRS later issued a notice which specified that “no deduction is allowed under the Internal Revenue Code if the payment of the expense results in forgiveness of a covered loan under section 1106b of the CARES Act.” This ruling was enacted after PPP loans became available and were distributed, and it transforms tax-free loan forgiveness into taxable income. In a letter to Congressional leadership, the groups highlighted the sense of urgency to reverse the IRS ruling before the end of the year to prevent a potentially significant tax increase on small business owners who applied for and spent their PPP loans before the notice came out. Many of those business owners are still struggling with government-mandated shutdowns or slowdowns. *****************************************t***************************************************** Registration Open for Farm Bureau Virtual Convention The American Farm Bureau Federation officially opened up the registration period for the 2021 American Farm Bureau Virtual Convention on January 10-13. For the first time in history, the group waived all registration fees to give all Farm Bureau members, as well as anyone interested in agriculture, the opportunity to experience one of agriculture’s premier events from the comfort and safety of home. “We are excited to open up the doors of this event and to bring home the high-quality content our attendees have come to expect from our events,” says Farm Bureau President Zippy Duvall. “Our featured speakers this year are no strangers to Farm Bureau.” Duvall says they’re honored to have Mike Rowe of the hit tv series Dirty Jobs and his newest show called Returning the Favor. He’ll join the virtual convention as the special guest during a fireside chat in the closing general session. Land O’ Lakes President and CEO Beth Ford will also join the convention to talk about hot topics and issues facing agriculture. The event also features an inspirational keynote address from Navy Seal Commander Rorke T. Denver.
| Rural Advocate News | Monday December 7, 2020 |
Washington Insider: The Tax Mess from Working at Home Politico is reporting this week that lawmakers are pushing to sort out a tax mess created by millions of people working from home during the coronavirus pandemic — amid rising fears that Congress will fail to reach a solution before tax filing season. People who've been working in a state different from the one in which they normally work face potentially nasty headaches when they do their taxes next year, thanks to uncertainty over who should get their local tax dollars, Politico said. Many lawmakers now want Congress to intervene to create a clear, uniform rule as part of their latest coronavirus relief efforts. The clock is ticking with next year's tax filing season set to begin later next month. It's yet another coronavirus problem in Congress' lap, though it hasn't gotten as much attention as others have. Usually, states tax people based on where they live or where they work. But what happens when someone who normally works in an office in one state has spent the past nine months working from home in another? That's hardly unusual in large cities whose metropolitan areas spill across borders. And with businesses increasingly comfortable with employees working elsewhere, some have decamped to vacation homes in other states. It's even an issue within some states, with fights over whether cities should continue imposing commuter taxes on suburbanites who no longer have commutes. States have been all over the map on how to deal with those situations, with border wars breaking out in some places. New Hampshire is suing Massachusetts, asking the US Supreme Court to strike down a Bay State rule that says people who usually work in Boston are still subject to its taxes even if they're working from home in southern New Hampshire. “Massachusetts claims the authority to tax New Hampshire residents who earn their incomes from activities they undertake solely within New Hampshire,” the suit complains, calling the move unconstitutional. In other places, it's a nonissue. In the Washington, D.C., area, for example, neighboring governments have longstanding pacts not to tax one another's residents regardless of where they work. Polling shows many taxpayers are unaware of the looming problems, but some people could end up being double taxed by states. At the same time, some taxpayers now working in lower-tax states than the ones in which they normally work may spy an opportunity to save on their tax bills — which has many employers worried. Most companies have continued to withhold state taxes from their employees' paychecks from the same place they always have, but some worry their workers will ask them to redo their tax forms so they can file somewhere else. Congress normally steers clear of state tax issues, but Senate Republicans have called for a national fix as part of their draft of another coronavirus stimulus plan. Senate Majority Whip John Thune, R-S.D., said that “the need to fix the remote and mobile worker tax issue existed long before the pandemic began, but the urgency to address it has grown exponentially this year.” House Speaker Nancy Pelosi, D-Calif., also has said she wants to address the issue. But Senator Chuck Schumer, D-N.Y., is key because the issue is especially touchy for New York which is “famously assertive about its right to tax visitors. The state's budget relies heavily on taxes paid by nonresidents — they represent about 15% of its entire revenue take. More than half of that, about $3.7 billion, is paid by New Jersey residents. “It's a huge issue for New York,” said EJ McMahon, a senior fellow at the Empire Center for Public Policy. “It has the most to lose from any attempt to restrict the current arrangement.” The state already has a longstanding rule to deal with people who have offices there but are actually working beyond its borders. It essentially says that if someone is elsewhere because it's convenient for them — rather than because it's demanded by their job—then they are subject to New York taxes. The rule was adopted decades ago. In Congress, lawmakers have considered various proposals, but many want to adopt a temporary rule that simply says people should continue to be taxed as they were before the pandemic began. That would seem to hold New York harmless, but it has a less obvious, risk: It could become a precedent that might come back to haunt the state. That's because it would be highly unusual for the federal government to tell states how to tax people and lawmakers have been battling for years over how states tax mobile workers. So if Schumer agrees to a narrow coronavirus-specific fix now, that would underscore that such issues are fair game for Congress — which could provide ammunition later to lawmakers like Thune who've been pushing broader, more permanent changes that could curtail New York's power to tax nonresidents. So, we will see. This is yet another important topic that is being added to the already long list of emergency issues arising from COVID. Since they often turn out to be tougher than expected, they should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday December 7, 2020 |
FMCSA Clarifies Agricultural Commodity Definition In Hours-Of-Service (HOS) Regulations The US Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) published an interim final rule (IFR) on Nov. 19 that clarifies the definition of “agricultural commodity” in the hours-of-service (HOS) regulations. Currently, drivers transporting agricultural commodities are exempt from the HOS requirements within a 150-air-mile radius from the origin (source of the commodity) to the destination during harvesting and planting seasons. The rulemaking is intended to ensure proper enforcement of the HOS exemption. The interim final rule is effective Dec. 9, 2020. Comments and petitions for reconsideration of the IFR can be submitted by Dec. 24, 2020.
| Rural Advocate News | Monday December 7, 2020 |
CRP Acreage Total Declines More Than Expected The level of acreage enrolled in the Conservation Reserve Program (CRP) as of October is at 20.76 million acres, down from 21.9 million acres as of September. This is a smaller total than had been expected based on the combination of contract expirations and new enrollments under the most recent general CRP signup and the continuous CRP efforts. Expectation had been that the combination of contract expirations and new enrollments would have put acreage at around 21.6 million acres. Based on data from USDA, the difference appears to be that not all the acres approved for enrollment under the general signup 54 and the CRP Grasslands signup were actually enrolled. USDA said that 3.4 million acres had been approved for enrollment via the general signup, but through October, only 2.87 million acres had been enrolled. Of the 1.2 million acres that had been approved for enrollment in the CRP Grasslands effort, only 910,266 acres had been enrolled through October. It is not clear if the smaller-than-expected acreage enrollments from the general signup and the Grasslands effort reflects delayed reporting of contracts starting or whether growers actually opted not to follow through with their enrollment intentions.
| Rural Advocate News | Monday December 7, 2020 |
Monday Watch List Markets Of course, DTN is watching and listening to excellent speakers on a wide variety of ag topics at DTN's Ag Summit, December 7 through 9. Traders are still paying attention to the latest weather forecasts and any export news that emerges. USDA's weekly report of grain inspections is at 10 a.m. CST and USDA no longer has Crop Progress reports until next spring. Weather Dry conditions will cover all primary crop areas Monday. Temperatures will be above to much above normal in northern areas and mostly below normal south. The drier trend favors remaining harvest, transportation and livestock.
| Rural Advocate News | Friday December 4, 2020 |
Dairy Margin Coverage Program Signup Numbers are Low Despite Benefits The signup deadline for the Dairy Margin Coverage Program is coming up on December 11th, and the American Farm Bureau says the number of dairy operations signed up is lower than expected. So far, 7,846 operations have enrolled in the program, covering about 64 billion pounds of milk. Those numbers account for just under one-third of the total number of U.S. operations and the total volume of milk. Approximately 68 percent of the country’s licensed operations with established production histories have not signed up for the program. Next year’s 7,846 operations enrolled is more than 23,000 fewer operations than signed up in 2019, when 13,468 dairy farms enrolled in the program. The drop in 2020’s dairy enrollments was due in part to somewhat positive expectations for the dairy industry going into 2020. The low level of signups just days before the deadline is surprising, given the benefits of enrolling for 2021. A rally in commodity prices may be helpful to many farmers, but it does make feed costs higher for dairy producers. The rising price of feed will squeeze the margins of dairy farmers, and that should make programs like the DMC more attractive to producers. Coverage is available from as low as $4 per hundredweight to as much as $9.50 per hundredweight. ********************************************************************************************** Grain Standards Reauthorization Heads to White House Outgoing Senate Ag Committee Chair Pat Roberts and Ranking Member Debbie Stabenow applauded the House of Representatives passage of the U.S. Grain Standards Reauthorization Act of 2020. The legislation is ready to be signed into law. The U.S. Grain Standards Reauthorization Act of 2020 passed out of the Senate Ag Committee in June and the full Senate in November. “I’m pleased the 2020 Grain Standards Reauthorization Act has quickly moved through both chambers of Congress to deliver certainty and predictability to the federal grain inspection system,” says Roberts. “I’m hopeful President Trump swiftly signs this legislation into law to ensure America can uphold its reputation as a dependable exporter of quality grain.” Stabenow also says the legislation provides much-needed stability. “Now, more than ever, we must provide certainty for farmers,” she says. “We are one step closer to enacting this bipartisan legislation and protecting our credibility as a reliable producer of high-quality crops.” The Grain Standards Reauthorization Act of 2020 has broad agricultural industry support from both national and state agriculture groups. Outgoing House Ag Chair Collin Peterson says, “American grain farmers participate in a competitive world, and foreign grain buyers should be confident in our inspection process.” ************************************************************************************ Biden: Democrats Forgot Rural America President-elect Joe Biden told the New York Times this week that Democrats “forgot” about rural America. However, in the same interview, he says that residents of rural America will “not be left behind.” Biden talked about the future efforts of Democrats to win the support of rural American residents and the 74 million people who voted for Trump in the election. “You know, it really does go to the issue of dignity, how you treat people,” Biden says. “I think those people feel forgotten. I think we forgot them.” While Democrats claimed the cities and suburbs to capture the Oval Office, the party fell even further behind in large parts of northern battleground states. Dems lost House seats in the Midwest, while Democrats once considered serious challengers to Republican incumbents in Iowa, Kansas, Montana, and North Carolina Senate races all lost. Fox News says continued losses in the country are putting pressure on Biden to reverse the trend, especially as failure to accomplish that will make it harder to meet his goals of curbing climate change. ********************************************************************************************** 2020 Farm Income Higher Due to Government Payments Net farm income, which is a broad measure of profits, is forecast to increase 36 billion dollars to $119.6 billion in 2020. Those numbers come from the USDA’s Economic Research Service. In inflation-adjusted 2020 dollars, net farm income is forecast to increase by 35 billion, the fourth-straight year the income numbers have gone up. If the prediction comes true, net farm income in 2020 in inflation-adjusted terms would be at its highest level since 2013 and 32 percent above the 2000-2019 average of $90.6 billion. However, cash receipts for all commodities are forecast to decrease by 3.2 billion dollars to $366.5 billion. Direct government farm payments are forecast at 46.5 billion dollars, an increase of $24 billion in nominal terms. Total production expenses, including operator dwelling costs, are forecast to decrease by 5.2 billion dollars to $343.6 billion in 2020. Interest expenses, livestock/poultry expenses, and oils/fuels costs are all expected to decline, but fertilizer costs and net rent to landlords are both expected to increase. The Economic Research Service says the predicted increase is due to the supplemental and ad hoc disaster assistance for COVID-19 relief. ********************************************************************************************** Pennsylvania’s Thompson to Succeed Conaway as House Ag Ranking Member The Hagstrom Report says the full House Republican Conference ratified committee ranking members for the upcoming 117th Congress. Pennsylvania Representative Glenn “G.T.” Thompson is now the ranking member on the House Agriculture Committee. House Minority Leader Kevin McCarthy says, “Congressman Thompson is ready to lead his colleagues on an issue he knows best. He comes from a family of dairy farmers, and has lived in rural Pennsylvania his whole life, so he understands what needs to get done to take American agriculture to the next level.” Thompson, who replaces the retiring Michael Conaway, says, “The challenges ahead of us are considerable, but we will continue to put farm families first.” The National Cattlemen’s Beef Association’s Vice President of Government Affairs Ethan Lane issued a statement praising the vote by the Republican Steering Committee. “Cattle producers in Pennsylvania and across the country are well represented by Congressman Thompson,” Lane says. “From his long-standing track record of bipartisan legislative victories to his work mentoring the next generation of agriculture leaders, ‘GT’ does it all.” Lane also says that the Pennsylvania Republican is an “exemplary choice” to guide the committee for years to come, and they are excited to work with him and his team in the next Congress. *****************************************t***************************************************** USDA Makes Improvements to Prevented Planting Coverage The USDA’s Risk Management Agency made improvements to its prevented planting coverage and to the beginning and veteran farmer and ranchers’ program that officially took effect on November 30th for the crop year 2021. These improvements were made to the Common Crop Insurance Policy Basic Provisions. “These improvements are the result of feedback from producer groups and other stakeholders,” says RMA Administrator Martin Barbre. “These changes will improve prevented planting coverage and the beginning and veteran farmer and ranchers’ programs for years to come.” Improvements include expanding the “1 in 4” coverage requirement nationwide, which requires producers to plant, insure, and harvest acreage in at least one of the four most recent crop years. RMA is also making modifications to ensure that producers’ prevented planting payments adequately reflect the crops the producer intended to plant. The improvement to the beginning and veteran farmer and rancher program will allow participants with farming experience to use the Actual Production History of the previous producer, with permission, on newly acquired land. RMA is also authorizing additional flexibilities due to COVID-19 while continuing to support producers. More information is available at farmers.gov/coronavirus.
| Rural Advocate News | Friday December 4, 2020 |
Washington Insider: Competition from Plant Based Meat Increasing It has been clear for some time that plant-based products aimed at current markets for meats are engaged in a serious battle for an extremely important part of U.S. producer incomes: those from the production of livestock. This week, the Guardian is reporting that cultured meat, produced in bioreactors without the slaughter of an animal, has been approved for sale by a regulatory authority for the first time. The development is being hailed as a landmark moment across the meat industry, the Guardian says. So called “chicken bites”, produced by the U.S. company Eat Just, have passed a safety review by the Singapore Food Agency and the approval could open the door to a future when large shares of meat are produced without the killing of livestock, the company said. Dozens of firms are developing cultivated chicken, beef and pork and claim to be slashing the impact of industrial livestock production on the global climate crises, as well as providing imitation meat products claimed to be “cleaner, drug-free and cruelty-free.” Currently, about 130 million chickens are slaughtered every day for meat, and 4 million hogs, the Guardian said. The cells for Eat Just's product are grown in a 1,200-litre bioreactor and then combined with plant-based ingredients. Initial availability will be limited, the company says, and the bites will be offered in a restaurant in Singapore. The product will be significantly more expensive than conventional chicken until production is scaled up, but Eat Just claims it will “ultimately be cheaper.” The cells used to start the process came from a cell bank and did not require the slaughter of live chickens. The nutrients supplied to the growing cells were all from plants. The growth medium for the Singapore production line includes bovine serum, which is extracted from fetal blood, the Guardian said, but “this is largely removed before consumption.” A plant-based serum is to be used in the next production line, the Eat Just company said, but was not available when the Singapore approval process began two years ago. The Guardian claims that “a series of scientific studies have shown that people in rich nations eat more meat than is healthy for them or the planet.” In addition, it argues that research shows cutting meat consumption is vital in tackling the climate crisis and “some scientists say this is the best single environmental action a person can take. The companies developing lab-grown meat believe their products are most likely to wean committed meat-eaters off traditional sources. Vegan diets are viewed as unappealing by some, and plant-based meat replacements are seen as more successful in replicating the texture and flavor of conventional meat. The small scale of current cultured meat production requires a relatively high use of energy and therefore carbon emissions. But once scaled up its manufacturers say it will produce much lower emissions and use far less water and land than conventional meat. Josh Tetrick, of Eat Just, said: “I think the approval is one of the most significant milestones in the food industry in the last handful of decades. It's an open door and it's up to us and other companies to take that opportunity. My hope is that this leads to a world in the next handful of years where the majority of meat doesn't require killing a single animal or tearing down a single tree.” But he said major challenges remained, with the reaction of consumers to cultured meat perhaps being the most significant: “Is it different? For sure. Our hope is through transparent communication with consumers, what this is and how it compares to conventional meat, we're able to win. But it's not a guarantee.” He said the cultured chicken was nutritionally the same as conventional meat. Other challenges included getting regulatory approval in other nations and increasing production. “If we want to serve the entire country of Singapore, and eventually bring it to elsewhere in the world, we need to move to 10,000-litre or 50,000-litre-plus bioreactors,” Tetrick said. A recent report from the global consultancy AT Kearney predicted that most meat in 2040 would not come from dead animals. The firm's Carsten Gerhardt said: “Approval in an innovation hotspot like Singapore already in 2020 could fast-forward market entry in other developed nations. In the long run we are convinced that cultured meat will address the health and environmental impact issues that traditional meat has when produced in a highly industrialized way.” Gerhardt also said he expected cultured meat would replace cuts of traditional meat, but that plant-based products, which will be less expensive, are more likely to replace burgers and sausages. “The [Eat Just approval] is a very big deal for the future of meat production globally,” said Bruce Friedrich, at the non-profit Good Food Institute in the U.S.. “A new space race for the future of food is under way.” He said cultivated meat is unlikely to become mainstream for some years, until it matched the cost of conventional meat. So, we will see. Conventional meat producers can be expected to take this new competition seriously, and to put up extended, well-funded fights over the coming years – efforts that likely will be both national and international in their focus and which should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Friday December 4, 2020 |
US Grain Standards Act Reauthorization Sent To Trump The House Wednesday cleared the United States Grain Standards Reauthorization Act (GSA) of 2020 (S 4054) under suspension of the rules, sending the plan to President Donald Trump for his signature. The legislation would reauthorize the GSA through September 30, 2025. Several groups hailed the passage of the legislation which the Senate had approved November 16. The reauthorization also included some changes, including that delegated state agencies to notify users of official inspection or weighing services at least 72 hours in advance of any intent to discontinue such services. It will also ensure that Federal Grain Inspection Service (FGIS) user fees are directed solely to inspection and weighing services and FGIS will undertake a comprehensive review of the current boundaries for the officially designated grain inspection agencies in the domestic marketplace.
| Rural Advocate News | Friday December 4, 2020 |
DHS Issues Order For Cotton Products Made By China's XPCC U.S. Customs and Border Patrol at all U.S. points of entry will detail shipments of cotton and cotton products originating from the Xinjiang Production and Construction Corps (XPCC) via a Withhold Release Order (WRO) based on information that “reasonably indicates the use of forced labor, including convict labor,” according to a statement from the Department of Homeland Security (DHS). The agency said the order applies to “all cotton and cotton products produced by the XPCC and its subordinate and affiliated entities as well as any products that are made in whole or in part with or derived from that cotton, such as apparel, garments, and textiles.” This marks the sixth action taken by the Trump administration's CBP relative to goods made by forced labor in the Xinjiang Uyghur Autonomous Region, DHS said. DHS Acting Deputy Secretary Ken Cuccinelli said, the action was to make sure that those who are abuse human rights “are not allowed to manipulate our system in order to profit from slave labor. 'Made in China' is not just a country of origin it is a warning label.” He also said that the action could affect “billions of dollars” of imports when the action scales up. The administration in early July announced issued a Xinjiang Supply Chain Business Advisory and the Department of Treasury July 11 announced that it had sanctioned XPCC and prohibited doing business directly with XPCC. China's Xinjiang produces 85% of China's cotton and DHS said that the actions thus far are not a region-wide blockade on cotton products from Xinjiang. But Cuccinelli said that XPCC is so prevalent in the region's economy that blocking products from the firm will be similar to a region-wide ban. “It is so massive that even though it appears that it's a single company, from our perspective it is equivalent to a regional WRO,” Cuccinelli said. Acting CPB Commissioner Mark Morgan said while the U.S. wants to target those using forced labor, they do not want to negatively impact entities that are not using forced labor. “That's why we are going to continue to investigate and we are not going to issue a region-wide WRO until we feel we can implement that correctly,” he noted. The U.S. textile industry has expressed concern about a region-wide ban as it would be difficult to determine which products from Xinjiang, and Morgan acknowledged CBP “shared those concerns.” But Cuccinelli warned that a region-wide ban is “definitely under consideration.”
| Rural Advocate News | Friday December 4, 2020 |
Friday Watch List Markets Friday morning reports include non-farm payrolls and the U.S. unemployment rate for November at 7:30 a.m. CST, along with the U.S. trade deficit from the Census Bureau. Using Census Bureau data, USDA will provide more specific export information later Friday morning. Traders will keep an eye on the latest weather forecasts for South America and continue to look for the first export sale announcement in December. Weather Most crop areas will be dry Friday. Precipitation will focus in the Mid-South and Southeast with rain, while the Northeast has rain and snow. Drought is intensifying in the Northern Plains and continues to be extreme to exceptional in the western U.S.
| Rural Advocate News | Thursday December 3, 2020 |
Washington Insider: Stronger Outlook for Trade Bloomberg is reporting that in press interviews this week the president-elect indicated a “better than expected outlook for trade.” The report highlighted an interview first reported by the New York Times' Thomas Friedman that said that the transatlantic alliance fractured by President Trump's unilateral trade policies appeared headed for repair – as both President-elect Joe Biden and Europe signaled an urgency to rejoin a united front against China's ascendancy in the global economy. “The best China strategy, I think, is one which gets every one of our – or at least what used to be our – allies on the same page,” Biden was quoted as saying. “It's going to be a major priority for me in the opening weeks of my presidency to try to get us back on the same page with our allies.” Meanwhile, in Brussels, the European Union is making a sweeping proposal for cooperation with the incoming Biden administration to counter the influence of countries like China and Russia. “This combined power and influence is indispensable to anchor global cooperation in the 21st century,” the European Commission, the 27-nation EU's executive arm, said in a strategy paper published Wednesday. The Trump administration and the EU have been at loggerheads over issues ranging from digital taxes on large tech companies, to aircraft subsidies and the leadership of the World Trade Organization. High on the list of potential economic risks in a second Trump term was a tariff war between the U.S. and Europe. In his recent public remarks, President-elect Biden is confirming interest in a renewed multilateral approach to address trade imbalances with America's traditional allies. For the EU, the aim is to bring the U.S. back into the multilateral system that the country was instrumental in forging after World War II and to leverage transatlantic unity to shape global developments in policy areas ranging from trade to health. Biden told the Times that he wouldn't immediately scupper the trade agreement Trump reached with China in January but will review it before making any decisions. “I'm not going to make any immediate moves, and the same applies to the tariffs,” Biden said, according to the report. “I'm not going to prejudice my options.” Biden said he will first conduct a full review of the phase-one deal and consult with allies in Asia and Europe “so we can develop a coherent strategy.” The yuan weakened against the dollar immediately after the news. As part of the trade deal signed in January, China agreed to increase its purchases of U.S. goods by $200 billion through 2021, but it is now nowhere close to meeting those targets. The latest data through the end of October shows China had only bought about 44% of the promised amount for this year. Both the U.S. and China left tariffs on billions of dollars worth of goods in place after the deal was signed. China's Foreign Ministry reiterated its previous comments when asked about Biden's views, with spokeswoman Hua Chunying telling reporters in Beijing Wednesday that resolving trade disputes with the U.S. requires mutual respect from both sides. Biden had said he hoped to tackle China's “abusive practices,” including “stealing intellectual property, dumping products, illegal subsidies to corporations,” as well as forcing “tech transfers” from American companies to their Chinese counterparts. But the U.S. needs “leverage” to deal with China, Biden said, adding “in my view, we don't have it yet.” To build that, the U.S. needs a bipartisan consensus at home for government-led investments in research and development, infrastructure and education to better compete with China, he said. “I want to make sure we're going to fight like hell by investing in America first,” he said, citing industries such as energy, biotechnology, advanced materials and artificial intelligence as key ones for large-scale investment in research. On the campaign trail, Biden's advisers described “a gradual approach on China tariffs,” saying he'd prioritize domestic issues like investing in research and development and U.S. manufacturing to compete with Beijing from a position of strength. The president-elect's latest comments suggest a cooling off of tensions between the two nations as he focuses attention on more immediate problems facing the U.S. economy, like the coronavirus pandemic. “Most likely the new U.S. president would spend his first year in office on domestic issues,” said Larry Hu, head of China economics at Macquarie Group Ltd. “It could give a respite to both sides, whose relationship has deteriorated a lot since 2018.” Still, Biden's pledge to work with allies could signify a broader threat to China, Bloomberg said. “After the past four years, it is difficult to expect a normalization of the bilateral relationship immediately,” said Raymond Yeung, chief economist for Greater China at Australia and New Zealand Banking Group. However, “as long as China continues to buy more from the U.S. and commit to the phase one agreement, the U.S. will say “why not”. Nonetheless, as most people expect, Biden's administration will work closely with allies in his China policy.” So, we will see. Clearly, promises to “get tough with China” have been effective politics – but efforts to maintain and expand trade there are also very popular. As a result, the new administration's “trade reset” will be eagerly debated and should be watched closely as details emerge, Washington Insider believes.
| Rural Advocate News | Thursday December 3, 2020 |
House Democratic Steering Committee Backs Rep. Scott To Head Ag Panel The House Steering Committee Thursday cast votes on who they back to lead the various standing committees in the 117th Congress, with Rep. David Scott, D-Ga., emerging as their choice. He received 32 votes to 19 for Rep. Jim Costa, D-Calif. While Costa has touted the backing of several agriculture groups for him to take the Ag panel gavel, Scott importantly received the support of currently House Ag Committee Chairman Collin Peterson, D-Minn., who was defeated in his bid for re-election. Scott is also the second ranking Democrat on the panel in terms of seniority, something which Peterson noted when he endorsed Scott for the chairman's spot. The full House Democratic caucus will make its choices Thursday on who will lead the committees. The House Republican Steering Committee on Wednesday also recommended the House GOP Caucus elect Rep. Glenn Thompson, R-Pa., as the ranking member for the House Agriculture Committee.
| Rural Advocate News | Thursday December 3, 2020 |
Federal Maritime Commission Expands Check On Ocean Carriers, Including On Ag Shipments The Federal Maritime Commission (FMC) will expand its Fact Finding 29 effort, the International Ocean Transportation Supply Chain Engagement, to now include practices that have arisen relative to the return of empty containers and other questionable practices. The expanded effort comes in the wake of several industries, including the U.S. agriculture industry, complaining that foreign carriers are rejecting exports of ag products in favor of sending empty containers back to China to be used to send Chinese goods back to the U.S. The situation arose, according to reports, after Chinese transportation officials met with major carriers and called on them to cut rates and reinstate some sailings that had been cancelled. Indications are the rejection of agriculture shipments is linked to costs and time associated with such shipments to China — they are cheaper to move and take longer to unload. By sending the empty containers back to China to be filled with Chinese goods, carriers can then charge higher shipping rates. The original Fact Finding 29 investigation was launched to “identify operational solutions to cargo delivery system challenges related to recent global events.” The expanded investigation is looking at “practices and regulations that are having an unprecedented negative impact on congestion and amplifying bottlenecks at these ports and other points in the Nation's supply chain,” FMC said. The expanded check is focusing on “alliance carriers who call on the Port of New York and New Jersey or who call on the Port of Long Beach and the Port of Los Angeles are employing practices or regulations” that are restricting U.S. exports via “practices and regulations related to demurrage and detention, empty container return” and “practices related to the carriage of U.S. exports.” It is not clear what results of the expanded effort will be, but actions involving agriculture shipments which have increased demurrage charges and other costs due to shipment rejections have caught the attention of U.S. shipping regulators.
| Rural Advocate News | Thursday December 3, 2020 |
Thursday Watch List Markets The latest weather forecasts from South America remain high on the list of trader attention Thursday as does any export news that develops. At 7:30 a.m. CST, USDA's weekly export sales, weekly U.S. jobless claims and an update of the U.S. Drought Monitor will all be released. At 9:30 a.m., the U.S. Energy Department provides the latest natural gas inventory. OPEC and other oil producers are set to meet Thursday in hopes of reaching an agreement on production levels for 2021. Weather Additional light snow is in store for portions of the southern Plains Thursday, offering some possible moisture for winter wheat while causing travel and safety issues. We'll also see periods of light rain in the Delta and freezing fog and air quality concerns prominent in the Northwest. Dry conditions are in store elsewhere.
| Rural Advocate News | Wednesday December 2, 2020 |
Farmer Optimism Lower in Latest Ag Economy Barometer U.S. farmers sentiment weakened following the November 2020 elections. The Purdue University-CME Group Ag Economy Barometer fell 16 points from a month earlier to a reading of 167. Although this month’s reading was nearly equal to the pre-pandemic high set back in February, it was nine percent lower than the reading taken just two weeks before the 2020 elections. Organizers say the decline resulted from weakened expectations for the future, as the Index of Future Expectations declined to a reading of 156 in November, 30 points below the October reading. On the other hand, farmers perception of current conditions on their farms improved. The Index of Current Conditions, lifted by the ongoing rally in agricultural commodity prices, rose by nine points from October to November, setting a record high for the index of 187. However, farmers have concerns about future regulation impact on agriculture, potential higher estate taxes, and reduced support for the ethanol industry. ************************************************************************************ Growth Energy Intends to Sue EPA Over 2021 Blending Targets Growth Energy Tuesday submitted a notice of intent to sue the Environmental Protection Agency. The notice is in response to the EPA's failure to fulfill its statutory obligation to issue the 2021 Renewable Volume Obligation by November 30, 2020, an annual deadline set by the Renewable Fuel Standard. The notice gives EPA 60 days to issue the 2021 RVO before risking a lawsuit in federal court. Every year, EPA is required to set the RVO so that biofuel and fossil fuel companies understand their total renewable fuel blending obligations for the following year. Failure to set the RVO undermines the RFS and could lead to uncertainty in the market and lower than necessary biofuel blending levels. Growth Energy CEO Emily Skor says EPA’s failure to meet their statutory obligation to issue RVOs “piles on the uncertainty in the fuel marketplace.” However, EPA Administrator Andrew Wheeler has previously said the announcement would be delayed, pending the outcome of a challenge to the Supreme Court by the oil industry. ************************************************************************************ House Ag Chair Nomination Thursday House lawmakers will nominate the next House Agriculture Committee Chair Thursday. A committee spokesperson confirmed leadership will decide who to back for the position, according to the Hagstrom Report. The two candidates being considered are David Scott, a Democrat from Georgia, and Jim Costa, a Democrat from California. Scott is next in line, seniority wise, and endorsed by outgoing chairman Collin Peterson. Peterson, a Democrat from Minnesota, lost his reelection bid. Once the 117th Congress is seated early next year, the full chamber will vote on leadership candidates. Representative Marcia Fudge was also considering the leadership position, but is in the running to be the next Secretary of Agriculture. Other reported Agriculture Secretary candidates include former North Dakota Senator Heidi Heitkamp, and Obama-era Agriculture Secretary Tom Vilsack. Robert Bonnie is leading the Agriculture Department transition team for the Biden administration. Bonnie served as undersecretary for Natural Resources and Environment at USDA during the Obama Administration. ************************************************************************************ USDA Reopens Comment Period for FMD Vaccine The Department of Agriculture Tuesday reopened a comment period regarding a petition from a vaccine manufacturer seeking approval to produce a foot-and-mouth disease vaccine. The comment period was announced by USDA’s Animal and Plant Health Inspection Service for an additional 30 days. The vaccine consists of a modified non-infectious and non-transmissible strain of the virus on the U.S. mainland. Although introduction of live FMD virus into the United States is prohibited by law, the petition states that this strain should not be considered live FMD virus as it is non-infectious, non-transmissible, and incapable of causing FMD. Public comments will be accepted through January 21, 2021, via the federal register. FMD is a severe and highly contagious viral disease affecting cows, pigs, sheep, goats, deer, and other animals with divided hooves. It was eradicated from the United States in 1929, but if it were to infect the U.S. livestock industry, it would likely cause devastating economic effects. ************************************************************************************ Lawmakers Seek Reauthorization of WHIP for 2020 Wildfires A Group of Representatives from Western states last week introduced a bill to reauthorize the Wildfire and Hurricane Indemnity Program Plus, known as WHIP+, for 2020 natural disasters. The WHIP+ program offers critical assistance to agricultural producers, including grapegrowers, whose crops were impacted by smoke taint. House Democrat Mike Thompson of California says, “This bipartisan bill activates the WHIP+ program for these 2020 fires and helps these growers hit hard by disasters.” Republican Representative Dan Newhouse of Washington state adds, "WHIP+ will help our winegrape growers recover from the damages of this year’s catastrophic wildfires.” WHIP+ can cover losses from flooding, hurricanes and wildfires, are any named natural disaster. Reactivating WHIP+ for 2020 is a priority for the American Farm Bureau Federation. AFBF is also calling on Congress to allow farmers and ranchers impacted by the Midwest derecho storm to be included in the program. The derecho, not being a named disaster, doesn’t qualify under the current program rules. ************************************************************************************ GROWMARK Holds First Virtual Annual Meeting It’s a normal sign of the times, virtual events, but you can add GROWMARK to the list of companies holding their first. The company held a virtual annual meeting Tuesday for more than 1,000 attendees. Normally the GROWMARK Annual Meeting happens every August at the Hilton Chicago, but to comply with Illinois mitigation measures, the decision was made to hold it virtually after the fiscal year closed on August 31. Holding the meeting in December allowed for audited financial results to be presented in full, and also brings an update after the acquisition of certain Southern States Cooperative agronomy and energy assets. Despite the challenges from COVID-19, a devastating derecho storm in key Midwest markets, and energy volatility in the markets, financial performance was respectable with strong earnings from operations. GROWMARK was able to distribute nearly $66 million in patronage distributions to shareholders this year. GROWMARK is an agricultural cooperative serving almost 400,000 customers across North America, Headquartered in Bloomington, Illinois.
| Rural Advocate News | Wednesday December 2, 2020 |
Washington Insider: Powell Helped Boost Labor Benefits President-elect Joe Biden will work to reverse the decades-long trend that has seen workers claim an ever-decreasing share of the U.S. economic pie. A Bloomberg report asserts that no matter which political party ends up controlling the Senate, Biden likely will continue to work toward higher returns for labor and could look to a Republican for continued support: Federal Reserve Chairman Jerome Powell. From a higher minimum wage and increased power for unions to bigger taxes on capital gains and the wealthy, Biden has outlined an ambitious agenda to lift labor's share of the income the economy generates. “It's time to reward work, not just wealth, in America,” Biden told reporters after a Nov. 16 meeting with union and corporate leaders to discuss the coronavirus pandemic's effect on the economy. The trouble for the president-elect is that much of his program hinges on whether Democrats take control of the Senate, something that won't be known until early January after run-off elections for Georgia's two seats. If the Democrats fall short – as many political analysts expect – Biden will have to largely fall back on executive and regulatory actions to try to tilt the playing field toward workers. Current Fed chair Powell also has been committed to returning the labor market to better times when unemployment was at a 50-year low of 3.5% and a wide swath of workers were enjoying wage gains. And Powell overhauled the central bank's strategic framework to help bring that about. That objective is also backed by Biden's reported pick for Treasury secretary, Janet Yellen, and it is likely to endure even if Powell isn't re-nominated for a second term when his current one ends in February 2022, Bloomberg says. Bloomberg says that Biden's economic team likely will take a significant step this week toward addressing the damage to the U.S. economy inflicted by the coronavirus pandemic. In addition, Biden has called for trillions of dollars in new stimulus to aid the fundamentally important small and mid-size businesses. As his future staff is filled out, he is expected to name longtime Democratic policy staffer Neera Tanden to lead his Office of Management and Budget and Cecilia Rouse to head the Council of Economic Advisers (CEA). Tanden's nomination already appears to be in trouble with Senate Republican aides expressing opposition before it was formally announced. Drew Brandewie, an aide to Sen. John Cornyn, R-Texas, said on Twitter that she “stands zero chance of being confirmed.” Another aide said Republicans in the Senate would certainly block Tanden, who's viewed as too progressive even though she's also had squabbles with some on the left. Biden's picks for his economic team suggest he will make it a “special priority” to lift the fortunes of Black and lower-income Americans whose gains in recent years have been endangered by the coronavirus pandemic. As for Rouse, who is to be named the head of the CEA, Bloomberg says she would become the first Black American in the position. Jared Bernstein and Heather Boushey, two progressive economists who have argued for the Federal Reserve to target the Black unemployment rate and for increasing the minimum wage, are expected to join Rouse as members of the CEA. However, not all the activity was from the president-elect. President Trump formally nominated Brian Brooks to take over a key banking regulatory position. In a brief Friday statement, the White House said it had sent the nomination to the Senate, where Senate Banking Committee Chairman Mike Crapo, R-Idaho, has already signaled that Brooks would get a confirmation hearing for a five-year term leading the Office of the Comptroller of the Currency. Brooks has been acting OCC chief since May. Trump's highly unusual move to try to install an industry-friendly watchdog at the end of his administration has been blasted by Democratic lawmakers who argue the president is refusing to accept the results of this month's election. If Crapo succeeds in fast-tracking Brook's confirmation, Biden would then have to decide whether to remove him after the Jan. 20 inauguration. While the law indicates Biden can oust Brooks, such authority has never been used before. Biden's acting Treasury Secretary could immediately remove Brooks if he fails to win Senate approval. So, we will see. Clearly these are very high stakes decisions that will continue until the new administration is fully defined and can turn its attention to governing. These nominations will include a number of positions in USDA which have not yet been indicated, in spite of a good bit of interest and discussion — debates producers certainly will watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday December 2, 2020 |
CFAP 2 Payments Over $11.1 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) total $11.15 billion as of November 29. Acreage-based payments total $5.5 billion and account for 49% of payments made, while livestock payments are at $3 billion, sales commodities are at $1.6 billion, dairy is at $$1.1 billion and eggs/broilers are at $44.35 million. Payments for five commodities total $1 billion or more—corn ($3.0 billion), cattle ($2.4 billion), sales commodities ($1.6 billion), soybeans ($1.2 billion) and milk ($1.1 billion). Iowa still leads all states at $1 billion, with the rest of the top five states being Nebraska ($755.8 million), California ($751.67 million), Minnesota ($719.8 million), and Illinois ($706.3 million). Signup for CFAP 2 runs through December 11.
| Rural Advocate News | Wednesday December 2, 2020 |
USDA Forwards Final Rule On Hemp Program To OMB The process of getting a final rule for a domestic hemp production program is closer as USDA's Agricultural Marketing Service (AMS) has forwarded its revised final rule to the Office of Management and Budget for review. The current target for a final rule is listed as October 2021. USDA reopened its comment period on the interim final rule through October 8, 2020, and the stop-gap funding plan that keeps the government operating through December 11 included a provision to extend the hemp pilot program through September 2021. Meanwhile, USDA's Risk Management Agency (RMA) also expanded the pilot multi-peril crop insurance plan for hemp to include Arizona, Arkansas, Nevada and Texas, and added 13 counties in states where the coverage was already available. RMA also made other adjustments to the pilot effort.
| Rural Advocate News | Wednesday December 2, 2020 |
Wednesday Watch List Markets Wednesday's reports start with private sector U.S. job growth for November from ADP at 7:15 a.m. CST, an early hint at Friday's unemployment report. The U.S. Energy Department reports on weekly energy inventories at 9:30 a.m. and is followed by the Federal Reserve's Beige Book at 1 p.m. Export news and the latest weather forecasts will also be noted. Weather A system will bring moderate showers to the Southern Plains Wednesday, along with moderate snowfall in southwest Kansas, western Oklahoma, and the northern Texas Panhandle. Western areas are likely to see winter wheat go dormant while the moisture will benefit winter wheat in the eastern Plains. Other areas will be dry.
| Rural Advocate News | Tuesday December 1, 2020 |
China Purchases of U.S. Commodities Still Lagging China’s purchases of U.S. farm commodities still lag behind targets set in the Phase One Agreement, according to research by the Peterson Institute. Through October 2020, China's year-to-date total imports of covered products from the United States were $75.5 billion, compared with a prorated year-to-date target of $137.3 billion. Over the same period, U.S. exports to China of covered products were $70.3 billion, compared with a year-to-date target of $125.4 billion. Through the first ten months of 2020, China's purchases of all covered products were thus only at 56 percent for U.S. exports or 55 percent of Chinese imports of their year-to-date targets. Through October 2020, China's imports of covered agricultural products were $15.6 billion, compared with a year-to-date target of $27.1 billion. Over the same period, US exports of covered agricultural products were $17.5 billion, compared with a year-to-date target of $24.6 billion. The data is based on October 2020 statistics released last week. ************************************************************************************ EPA Releases Draft Biological Evaluation for Glyphosate The Environmental Protection Agency recently released a draft biological evaluation for glyphosate. EPA's draft biological evaluation for glyphosate includes an effects determination for listed species and designated critical habitats and finds that glyphosate is likely to adversely affect a significant percent of endangered species and critical habitats. If EPA determines glyphosate may affect a listed species or its critical habitat, the agency will consult with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service as appropriate. Of more than 1,700 species considered, EPA claims roughly 93 percent were likely to be adversely affected by glyphosate, with more than half the species being plans. EPA followed its March 2020 Revised Method for National Level Listed Species Biological Evaluations of Conventional Pesticides to conduct this biological evaluation. The assessment could mean further restrictions and controls on glyphosate. Glyphosate is used on about 298 million acres of agricultural cropland annually. ************************************************************************************ USDA Announces Expansion, Other Improvements to Hemp Crop Insurance The Department of Agriculture Monday announced the expansion of the pilot Multi-Peril Crop Insurance plan for hemp. The expansion and other improvements to the plan, will begin in the 2021 crop year. USDA Risk Management Agency Administrator Martin Barbre says, “Hemp offers exciting economic opportunities for our nation’s farmers, and we are listening and responding to their risk management needs.” The program expansion allows for additional states and specific counties to be included in the program. The changes also allow broker contracts for hemp grain and adjust program reporting and billing dates. Sales closing, cancellation, production reporting and termination dates were adjusted to match dates of similar crops. Meanwhile, USDA adjusted Acreage Reporting Dates based on regional final planting dates. The premium billing dates for all states changed to August 15. For more information on USDA risk management programs for hemp producers, they are encouraged to visit farmers.gov/hemp. ************************************************************************************ USDA to Conduct 2020 Local Food Marketing Practices Survey The Department of Agriculture’s National Agricultural Statistics Service will conduct the 2020 Local Food Marketing Practices Survey, beginning this month. First conducted in 2015, the Census of Agriculture special study will look at local and regional food systems and provide new data on how locally grown food in the United States are marketed and sold. The results will be available in November 2021. The 2020 Local Food Marketing Practices Survey is part of the Census of Agriculture Program and is required and protected by law. Federal laws require producers to respond and USDA to keep identities and answers confidential. Farmers and ranchers who receive the survey may complete it securely and conveniently online at www.agcounts.usda.gov or by mail. The deadline for response is February 16, 2021. The survey will ask producers about their production and local marketing of foods during the 2020 calendar year, including the value of food sales by marketing channels such as farmers markets, restaurants, and roadside stands. ************************************************************************************ Peterson Requests Delay in Nation-wide 5G Network Implementation Outgoing House Agriculture Committee Chairman Collin Peterson and others on the committee seek a delay in deploying a terrestrial nationwide network to provide 5G services. In a letter last week to the House Appropriations Committee, Peterson says, “There is no room for error when discussing safety and reliability of service for GPS signals.” In July, a group of lawmakers led by Peterson expressed serious concerns surrounding the FCC's decision, questioning the reliability of GPS for millions of Americans, especially farmers and ranchers who rely on the technology for precision agriculture. Peterson was joined by Republicans Glenn GT Thompson of Pennsylvania and James Comer of Kentucky. Specifically, the lawmakers want the FCC to delay an order granting Ligado Networks 5G development. Representative Comer states, “critical tools like GPS technology must not be disrupted, as our farmers are essential workers who must have the tools they need to do their jobs.” The lawmakers hope appropriation bills will include the delay. ************************************************************************************ FCC Chair Pai to Step Down January 20 Federal Communications Commission Chair Ajit Pai (Uh-JEET Pie) will step down January 20, 2021, the day President-elect Joe Biden will be sworn in. In a statement released Monday, the rural Kansas native said, “It has been the honor of a lifetime to serve at the Federal Communications Commission.” Pai was appointed to the commission in 2012 by President Barack Obama, and made chairman by President Donald Trump in 2017. Pai used his time at the FCC focusing on rural broadband issues, among other things. Pai’s term was set to expire in June 2021. The now outgoing chairman mentioned successes in his time, such as closing the digital divide, promoting innovation and competition, from 5G on the ground to broadband from space, protecting consumers, and advancing public safety. Pai grew up in Parsons, Kansas and attended Harvard and the University of Chicago Law School. Pai was the first Asian-American to chair the FCC, which he calls a “particular privilege.”
| Rural Advocate News | Tuesday December 1, 2020 |
Washington Insider: Budget Fight Begins in Earnest Bloomberg is reporting this week that key Republicans have withheld support for an initial agreement on government funding totals, as lawmakers continue to work toward a deal on an omnibus appropriations measure by the end of next week. House Minority Leader Kevin McCarthy, R-Calif., is opposed to an agreement by Rep. Nita Lowey, D-N.Y., and Sen. Richard Shelby, R-Ala., who lead the House and Senate Appropriations Committees. President Trump hasn't commented on the agreement and White House Office of Management and Budget staff didn't respond to Bloomberg's request for comment. Broad Republican opposition to an agreement on allocations would make it difficult for lawmakers to agree to an omnibus by the Dec. 11 funding deadline, increasing the odds of either a stopgap measure or a shutdown, Bloomberg said. Lowey and Shelby agreed last Tuesday to a set of top-line spending allocations for all 12 appropriations categories, allowing lawmakers to start negotiating the details of an omnibus. The agreement covered emergency funding expected to be proposed, Bloomberg said and was thought to overcome a major disagreement in current spending discussions. House Democrats had included $247.4 billion in emergency funds that would be exempt from statutory spending limits, while Senate Republicans only included $12.5 billion in emergency funds. It's unclear how much emergency money is included now in the current draft agreement--lawmakers and aides haven't provided details and tend to be secretive with initial agreements on top-line spending allocations, Bloomberg said. But McCarthy, a Trump ally, told the press he isn't happy with the agreement's emergency funds, which go beyond the bipartisan 2019 agreement on how much discretionary money to spend in fiscal 2020 and 2021, Bloomberg said. The White House was initially silent on the idea of an omnibus appropriations package, rather than smaller bills or a stopgap measure, until Chief of Staff Mark Meadows made it clear Trump wanted a deal. So, appropriators also are preparing another short-term, stopgap bill into next year, just in case, Bloomberg says. It's possible the House will complete its legislative business early the week of Dec. 7, according to a schedule update by House Majority Leader Steny Hoyer, D-Md., a sign that House leaders haven't ruled out a quick deal ahead of the Dec. 11 deadline. Hoyer's update encouraged House members to stay in Washington after the last scheduled votes of the week on Friday. “As conversations surrounding legislation related to government funding, coronavirus relief, and a few other items are ongoing, these bills will be considered by the House as soon as they are ready,” the most recent update said. Also, President-elect Joe Biden is expected to take a significant step this week toward addressing the damage to the U.S. economy inflicted by the coronavirus pandemic, as he names an economic team led by his choice for Treasury secretary, former Federal Reserve Chair Janet Yellen. She is seen as a “battle-tested policy maker” who can draw on her nearly two decades at the Fed to help rebuild an economy in dire need of government cash and confidence. The President-elect has called for trillions of dollars in new stimulus to aid the small and mid-size businesses that are the nation's primary jobs engine. Yellen's expected to champion what she's called “extraordinary fiscal support” to support the pandemic-ridden economy--deficit spending that she says is affordable given extraordinarily low interest rates. Others in Biden's economic policy team are also expected to be unveiled in the next few days including longtime Democratic policy staffer Neera Tanden who is expected to lead the Office of Management and Budget as well as Cecilia Rouse, formerly of the Obama administration and currently dean of Princeton University's School of Public and International Affairs, who would head the Council of Economic Advisers. Both roles require Senate confirmation and observers expect at least Tanden's nomination to be controversial. So, we will see. Dealing with spending bills likely will continue to be controversial, as will the proposals for membership in the new economic policy team. And while there is little enthusiasm for a standoff on the spending proposals this fall, this is a “hardball era” in Washington and bitter fights among competing interests in both parties are intensifying along with the lingering hostilities over the legitimacy of the recent election. These are important fights in many cases and should be watched closely by ag producers as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday December 1, 2020 |
USDA Forwards Plan To OMB On Regs For GE Animal Movement USDA has forwarded to the Office of Management and Budget (OMB) what is being labeled a pre-rule on regulations covering the movement of animals that are modified or produced by genetic engineering. The rule was sent to OMB November 25 and there is no statutory deadline for the item and it is not clear yet what direction USDA plans to head on the topic. Plus, given that it is not even in the proposed rule stage, the issue could well be finalized by the incoming Biden administration.
| Rural Advocate News | Tuesday December 1, 2020 |
Australia-China Trade Tensions Continue To Rise China announced tariffs of up to 212% on Australian wine, contending the country uses subsidies to bolster its exports. The move is the latest instance of a decline in Sino-Australian relations, and Simon Birmingham, Australian Trade Minister, said they would amount to a “devastating blow” for Australian business as china accounts for 42% of Australian wine exports. Australia is also preparing to take action against China at the World Trade Organization (WTO) over tariffs on barley imports. China in May placed tariffs of 80.5% on Australian barley, saying it was being sold at unfairly low prices with the help of subsidies. Australia rejected that finding and directly appealed to Chinese authorities to reverse the duties but was rebuffed. “So now the WTO appeal for barley is the next step,” Birmingham said Sunday. The government is holding talks with the local grains industry and other sectors to gauge support for filing a complaint, he added. The rising tensions have resulted in some benefits to the U.S., but surprisingly no U.S. barley exports have taken place thus far even though the Phase One agreement also resulted in a China-U.S. accord on barley.
| Rural Advocate News | Tuesday December 1, 2020 |
Tuesday Watch List Markets After broad losses in the grain sector Monday, traders will be checking the latest weather forecasts for South America and any trade news that develops. ISM's index of U.S. manufacturing is due out at 9 a.m. CST and will be compared to similar indices for other countries. USDA's Fats and Oils report will have an update of soybean crush at 2 p.m. CST. Weather Light to moderate snow is in store for portions of the eastern Midwest Tuesday, mainly in Ohio. This snow will disrupt the final stage of corn harvest. Dry conditions will be in place elsewhere. The pattern turns stormier in the Plains with snow during Wednesday.
| Rural Advocate News | Monday November 30, 2020 |
Washington Insider: Dealing With China Bloomberg is reporting this week that the U.S. will soon have a new climate czar, John Kerry, the former senator, secretary of state and presidential candidate. In explaining the role's placement within the National Security Council, President-elect Joe Biden said he wanted to put “climate change on the agenda in the situation room,” the report said. The report also notes that “critically, this structure signals that the new White House is searching for common ground with China.” Kerry is widely credited with putting together a US-China agreement in 2014 to reduce carbon emissions, a breakthrough that paved the way for the Paris Agreement the following year. That deal was a template for the kind of collaboration that many argue is now essential. Without cooperative action, former Secretary of State Henry Kissinger warned at last week's Bloomberg New Economy Forum, “The world will slide into a catastrophe comparable to World War I.” Kerry is clearly expected to reprise his role as the Beijing bridge-builder, Bloomberg says. “While some have decided that we are entering a new Cold War with China, we can still cooperate on critical mutual interests,” Kerry told the New York Times last month calling for joint action to protect the Southern Ocean. Geopolitics, he insisted, “must stop at the water's edge.” Some critics, however, contend that Kerry, under President Barack Obama, gave up too much in return for Chinese acquiescence on climate — for instance, by soft-pedaling human rights—and they fear a Biden presidency may make the same mistake. “Sending Kerry to negotiate with Chinese President Xi Jinping on climate is a recipe for returning home dressed in a barrel,” said the Wall Street Journal editorial page recently -- typically not a fan of the Obama administration. But U.S. public attitudes on China have hardened since the Obama days and few now expect a Biden White House will go any easier on China over contentious issues like Uyghur detention camps or the militarization of the South China Sea. Indeed, Biden's expected choice to head the Pentagon, Michele Flournoy is “very much the hawk” Bloomberg says. So, it is increasingly clear that strategic rivalry is now hard-wired into the U.S.-China relationship, and there's a growing acknowledgment by figures in both Washington and Beijing that—while it can be mitigated—it's unlikely to be resolved readily by any effort to get along. Certainly, Chinese leaders are digging in for protracted hostilities, so much so that President Xi Jinping is reorienting the entire economy toward “self-reliance,” fearing continued U.S. tariffs, technology embargoes and financial sanctions. In congratulating Biden on his win, President Xi Jinping alluded to these gathering tensions, but also the need to manage them. The official Xinhua News Agency quoted Xi as saying he “hopes that the two sides will uphold the spirit of non-conflict, non-confrontation, mutual respect and win-win cooperation, focus on cooperation, manage differences [and] advance the healthy and stable development of China-US ties.” Pandemic control is an obvious area of collaboration, Bloomberg says, along with mass migration and financial stability. On climate, says Fu Ying, a former Chinese ambassador and vice foreign minister, “the world expects China and the U.S. to play a leading role and the two countries have a lot to work on together.” While Kerry won't save the U.S.-China relationship, at least not all by himself, but one could argue that a joint effort to save the planet would increase the odds that the two countries will avert disaster, Bloomberg concludes. So, nobody thinks Kerry's task will be easy. While trade tensions and China's retaliatory tariffs slashed US agricultural exports to China in 2018 and 2019, China's agricultural purchases from the rest of the world continued apace and it has become the world's largest agricultural importer, USDA said last fall. It is surpassed both the European Union and the United States in 2019 with imports totaling $133.1 billion. What's more, the composition of China's imports is also rapidly changing. Whereas bulk commodities once dominated, higher-valued consumer-oriented products are now surging ahead, eclipsing the former for the first time in 2019. And, while implementation of the U.S.-China Economic and Trade (Phase One) Agreement and the economic response to Covid-19 currently overshadows the trade landscape, the biggest challenges facing U.S. agricultural exports in China may be a combination of competition from other suppliers and US agriculture's ability to meet China's increasingly diverse import needs, USDA said. It sees a combination of rising income and living standards, increasing urbanization, and food safety concerns fueling China's future agricultural imports, already a strong trend since the country's accession to the World Trade Organization in 2001. As incomes rose, the average Chinese diet changed to include more meat, dairy, and processed foods, while grain consumption declined. Between 2000 and 2019, per capita consumption of poultry meat increased 32%, soybean oil consumption more than quadrupled, and fluid milk intake more than tripled, USDA said. So, Kerry's job will be challenging. U.S. producers can be expected to compete strongly for China's growing markets and China will clearly need access to U.S. production to satisfy its growing consumer demand. Whether this “two way street” of trade flows can overcome the enormous bitterness arising from all the other competitive areas -- and the long history of clumsy postures on both sides remain
| Rural Advocate News | Monday November 30, 2020 |
Surging Chinese Imports of US Corn Set To Continue: Bloomberg China's appetite for US corn is expected to continue to strengthen in the year ahead, with imports trending towards the high end of current expectations, Bloomberg reported. Bloomberg cited sources familiar with purchasing plans of state-owned Cofco Corp., saying the firm is likely to boost purchases of US corn beyond already robust levels. The news comes about a week after Chinese corn imports exceeded the country's annual tariff rate quota (TRQ) — currently 7.2 million metric tons — for the first time. “The fact that China has exceeded its feed grain import quota already tells you there's a great need there,” Rabobank analyst Stephen Nicholson told the outlet. “And it doesn't seem to be slowing down.” China's continued rebound from COVID-19 and the rebuilding of its swine herd following a devastating African swine fever (ASF) outbreak are both helping to drive corn imports higher, Bloomberg noted. Meanwhile, China has turned to the US to satisfy that demand as other suppliers—including those in South America—see more supply disruptions.
| Rural Advocate News | Monday November 30, 2020 |
Australia to Bring WTO Case Against China Over Barley Duties One day after China imposed preliminary antidumping duties on Australian wine, Australian trade officials said they intend to launch a World Trade Organization (WTO) dispute targeting earlier duties China levied on imports of barley. The events mark the latest salvos in an intensifying trade and diplomatic row between the two countries. Asked about prospects for bringing a WTO dispute against China over the 80.5% barley duties, Australian Trade Minister Simon Birmingham told reporters Sunday (November 29) “I expect that will be the outcome.” Australia is currently “working through exactly when and making sure we have the evidence lined up,” Birmingham said of a WTO complaint. “Last week, through the trading goods committee at the WTO, Australia outlined seriously our range of concerns in terms of this accumulation of instances from China of adverse trade decisions against Australia,” he detailed. The wine duties, however, are not expected to be part of any initial WTO dispute, Birmingham noted.
| Rural Advocate News | Monday November 30, 2020 |
Monday Watch List Markets The final day of November shows a report on U.S. pending home sales for October at 9 a.m. CST, followed by USDA's weekly grain export inspections at 10 a.m. CFTC's Commitments of Traders report is released Monday afternoon and USDA's final Crop Progress report of 2020 is due out at 3 p.m. Weather Monday features rain and snow in the eastern Midwest, disrupting the late stages of harvest and causing some safety hazards. Dry conditions will be in place elsewhere, with more drying of soils in winter wheat areas. Freeze warnings are in effect in the Gulf Coast due to abnormally cold air.
| Rural Advocate News | Friday November 27, 2020 |
Ag Credit Conditions Recover in Third Quarter Farm income and loan repayment rates recovered from sharp declines in the second quarter, and demand for credit softened according to Federal Reserve Ag Credit Surveys. Although farm income generally remained low, loan repayment rates stabilized, and farmland real estate markets remained strong. Farm loan demand moderated in all Federal Reserve districts for the first time since 2013 in the third quarter. Funding at agricultural banks was likely supported by higher deposits and an influx of liquidity from Federal Reserve and government programs following the COVID-19 outbreak. The Fed says an influx of government payments and higher prices for agricultural commodities provided greater support for farm finances in the third quarter and seemed to limit demand for financing. Despite some improvements in the agricultural economy, farm income and repayment rates remained low, albeit not as low as in the second quarter. Increased uncertainty related to the pandemic may also have curbed some demand for new loans and could continue to weigh on agricultural lending conditions moving forward. ************************************************************************************ Peterson Raises Concerns Regarding Transition Outgoing House Agriculture Committee Chairman Collin Peterson has concerns regarding President-elect Joe Biden’s transition as it relates to agriculture. In a letter to the General Services Administration, the Minnesota Democrat says, “I write to express my concerns about the impacts to farmers, ranchers and consumers from the lack of a timely Presidential transition process.” While the delayed transition is now underway, the impacts of the delay persist. Specific issues mentioned by Peterson include the Department of Agriculture's ongoing work with meat and poultry plants amid the COVID-19 pandemic, along with the risk of African swine fever entering the United States. Other issues include outbreaks of High Pathogenic Avian Influenza across Europe and Asia, and a shortage of CO2 production, impacting meatpacking plants. Peterson states, "Dedicated civil service staff in the USDA Office of Homeland Security and throughout the Department are monitoring these and other crucial situations, but it will take high-level leadership and the ability to muster funding to address them." ************************************************************************************ Organic Groups Send Recommendations to Transition Team The Organic Trade Association and the National Organic Coalition recently sent industry recommendations to President-elect Joe Biden's transition team. In a letter to the transition team, the groups say, "here are several overarching issues that need to be addressed early in your Administration to put organic agriculture back on safe footing after the challenges of the past four years.” Those issues include implementation of the Obama-Biden Organic Animal Welfare Rule. The groups also call for the finalization of Organic Origin of Livestock Regulations, and finalization of the Strengthening Organic Enforcement Rule. Other priorities for the organic industry include restoring the Organic Certification Cost Share Program to the full Reimbursement Rates Mandated by the 2018 Farm Bill, and embracing organic agriculture as a key climate change solution. Additionally, the groups say, “We encourage your Administration to engage the U.S. food and agriculture sector in a dialogue about how we can best use the lessons learned from the pandemic to build our food system back, better than it was before.” ************************************************************************************ EPA Seeking Comments on Updated Plant Biostimulants Guidance The Environmental Protection Agency is accepting comments on an updated Draft Guidance for Plant Regulators and Claims, Including Plant Biostimulants. Plant biostimulants are a relatively new but growing category of products, according to the EPA. Their increasing popularity arises from their ability to enhance agricultural productivity through stimulation of natural plant processes using substances and microbes already present in the environment. Plant biostimulants can also reduce the use of synthetic chemical fertilizers, making it an attractive option for sustainable agriculture and integrated pest management programs. An EPA spokesperson says, “When finalized, our Plant Biostimulants Guidance will provide sought-after certainty and transparency for this growing area of the economy.” While many plant biostimulants are not regulated as pesticides, certain mixtures and plant regulators can be pesticides under the Federal Insecticide, Fungicide and Rodenticide Act. The public comment period will be open for 30 days at www.regulations.gov. EPA anticipates finalizing the guidance in January 2021. ************************************************************************************ Deere Sales Down 9%, Net Income Down 15% Deere & Company reported net income of $757 million for the fourth quarter that ended November 1, 2020, or $2.39 per share, compared with net income of $722 million for the quarter ending November 3, 2019. For fiscal 2020, net income attributable to Deere & Company was $2.751 billion, or $8.69 per share, compared with $3.253 billion, or $10.15 per share, last year. Chairman and CEO John May says the company "delivered another quarter of strong performance and a solid year despite the challenges associated with managing the pandemic." Net income attributable to Deere & Company for fiscal 2021 is forecast to be in a range of $3.6 billion to $4.0 billion. In the year ahead, Deere expects to benefit from improving conditions in the farm economy and stabilization in construction and forestry markets. According to May, "higher crop prices and improved fundamentals are leading to renewed optimism in the agricultural sector and improving demand for farm equipment." ************************************************************************************ Roberts, Stabenow Announce Hearing on Research and Securing America’s Food Supply Leadership of the Senate Agriculture Committee recently announced a hearing titled “Agricultural Research and Securing the United States Food Supply.” Announced by Committee Chair Pat Roberts, a Kansas Republican, and Top Democrat Debbie Stabenow of Michigan, the hearing is scheduled for Wednesday, December 2, at 2:30 ET. The hearing will feature Amy France, a producer and member of National Sorghum Producers, and Don Glickman, Executive Director of the Aspen Institute. Additional speakers include Stephen Higgs, Director of the Biosecurity Research Institute, and Dr. Steven Rosenzweig, Senior Agricultural Scientist, Agricultural Research, General Mills. The hearing will be one of, if not the last hearing, under current leadership of the Senate Agriculture Committee. Senator Roberts of Kansas will retire at the end of the current Congressional session. While Stabenow seems likely to remain on the committee, the next chairman won’t be known until after a special election runoff in January, which will dictate which party will control the chamber. ************************************************************************************ Cattle Producers Congratulate Newhouse On Being Elected Western Caucus Chair The National Cattlemen's Beef Association applauds Representative Dan Newhouse being unanimously elected as Chairman of the Congressional Western Caucus. Newhouse, a Washington state Republican, will serve as chairman in the upcoming 117th Congress. In a statement, NCBA Vice President of Government Affairs, Ethan Lane, says, "Congressman Newhouse is a strong advocate for cattle producers and has been instrumental in getting critical legislation across the finish line." Following the announcement, Newhouse called the caucus "the premier organization advocating for rural policy issues throughout the West and beyond.” The Western Caucus serves as a common voice for members of Congress representing western, rural and resource-based communities and fighting for the priorities of the American people in the process. Initially, the Caucus was born in the West, out of concerns of federal interference with rural, agricultural, timber, water, energy and hunting e. Over time, the Caucus has grown beyond the geographic West, allying with Members of Congress throughout the country to join. ************************************************************************************ EPA Encourages Americans to Avoid Food Waste Over the Holidays Fresh off the Thanksgiving holiday and fridges stuffed with leftovers, the Environmental Protection Agency wants consumers to consider the environment when it comes to food waste. EPA Administrator Andrew Wheeler says more than 70 billion pounds of food waste reach U.S. landfills every year, contributing to methane emissions and wasting food supply chain resources. Wheeler says, "We must all do our part to help people and the environment by preparing only what we need, cutting down our food waste, and sharing or donating what we can to feed others." EPA estimates that more food reaches landfills than any other material in everyday trash, constituting 24 percent of municipal solid waste. Reducing food waste and redirecting excess food to people, animals, or energy production provide immediate benefits to public health and the environment. Those benefits include reducing methane emissions from landfills, saving money through thoughtful planning, shopping and storage, and supporting your community by donating untouched food that would have otherwise gone to waste.
| Rural Advocate News | Friday November 27, 2020 |
Washington Insider: Continuing WTO Leadership Fight The World Trade Organization has been without a boss — the Director General — since September, when Roberto Azevedo stepped down one year before the end of his mandate. Since then, the 164 members that make up the organization have been discussing who his replacement should be. There were 8 candidates in the running but only two remain: South Korea's Yoo Myung‐hee and Nigeria's Ngozi Okonjo‐Iweala. WTO members appoint the Director‐General by consensus, CATO reminds and consensus has been growing around the candidacy of Okonjo‐Iweala, a former finance minister and World Bank managing director. But in recent discussions in Geneva, the United States signaled that it would not support her candidacy. The U.S. already has made the WTO's appeals court non‐functional by blocking the appointment of any new judges, making it impossible to hear appeals. By threatening to veto the appointment of a new DG the U.S. only amplifies the message that trade policy watchers have long known — the U.S. is basically interested in the WTO, CATO said. It notes that it is not surprising that there is “some drama” over the nomination of a Director‐General, given the fact that it is a position that serves a number of important roles, including the management of the day to day operations in Geneva, and serving as an honest broker between the WTO's 164 members. The value of the Director‐General is in setting the tone for the organization, and perhaps in a more limited way, influencing the direction of the organization as well. So, while the WTO Director‐General does not play a role in policymaking, she can serve a critical role in facilitating discussions and getting negotiations across the finish line, CATO says. Bloomberg reports this week that sources close to US Trade Representative Robert Lighthizer say he “views Okonjo‐Iweala as being too close to pro‐trade internationalists in Washington like Robert Zoellick, a former USTR who worked with Okonjo‐Iweala when he was president of the World Bank,” even though she also holds U.S. citizenship. Lighthizer's disdain for the WTO is well documented, as are his protectionist views, “which have not only failed to live up to his promise of manufacturing revival but have been disproportionately shouldered by US consumers,” CATO says. Nominating someone to the Director-General's post that not only understands the benefits of trade and the costs of protectionism “works against the policies Lighthizer has pushed for as USTR,” CATO says. Furthermore, for the U.S. to support a candidate who is highly unlikely to ever garner support from China also raises suspicion that the threat of a veto is simply exercised to enhance tension in the organization. However, Bloomberg is reporting this week that the fight is still active to the point that wagering “in a locked-down Geneva this month” is often focused on whether South Korea's Yoo Myung-hee will withdraw from the race to lead the World Trade Organization. But Bloomberg reports that despite what's been written in various news reports, “Yoo has not withdrawn from the race but hasn't responded to questions about whether she'll stay in the running.” To some members, Yoo's candidacy became toxic the moment the US unilaterally blocked Okonjo-Iweala a month ago. It's still a bit of a head-scratcher why Washington vetoed a highly respected economist with verifiable reform credentials to lead the WTO. She's also an American citizen. The office of U.S. Trade Representative offered scant details about why it opposes Okonjo-Iweala, other than to say Yoo has the “skills necessary to be an effective leader of the organization.” So, Bloomberg takes a flyer—in the absence of a clear reason, it offers some “possible strategies that USTR Robert Lighthizer may be pursuing.” The first may be that the U.S. “believes that Yoo is the better candidate because she has real, hands-on experience in the field” and Okonjo-Iweala doesn't, Bloomberg says. Or, the U.S. may want to advance a third candidate to lead the global trade organization; or, it may want to extract some other concession unrelated to the WTO's leadership race; or, it may simply want to force WTO members to vote on the matter, an unprecedented exercise seen as damaging to a consensus-oriented institution. Bloomberg also argues that the U.S. sees a leadership void and chaos at the WTO as beneficial to America's interests. While any of these options are possible, the Cato Institute's Simon Lester told Bloomberg that the multi-dimensional outcome concerning “possible concessions” seems to be the most plausible explanation. “The administration has been using economic leverage to extract concessions from trading partners at every opportunity, and it would not be surprising if it were to use the director-general selection process for this purpose as well,” Lester said. President-elect Joe Biden, who has supported multilateral organizations in the past is expected by some to move to end the impasse in the WTO leadership race — but not until after his inauguration on Jan. 20. So, for now, Geneva remains in a wait-and-see posture with low expectations that the WTO's drift into dysfunction will be resolved anytime soon. This is yet another issue that producers should watch closely as the new US trade policy continues to be discussed, and to evolve Washington Insider believes.
| Rural Advocate News | Friday November 27, 2020 |
US Slaps Duties On Phosphate Fertilizer From Morocco And Russia A preliminary determination imposing countervailing duties on imports of phosphate fertilizer from Russia and Morocco was announced by the Commerce Department. The decision was scheduled to be released November 23 but came one day late. The department set preliminary duties of 23.46% on imports from Morocco's OCP Group and other producers in the country, 20.94% on those from Russia's Phosagro, 72.50% on EuroChem and 32.92% on all other Russian producers. The decision follows an investigation launched in July on petitions filed by US-based fertilizer company Mosaic Co. The US imported about $729 million worth of phosphate fertilizer from Morocco and about $299 million from Russia in 2019, according to Commerce. A final Commerce Department decision is expected February 8, followed by the International Trade Commission's (ITC) final decision on March 25, with the issuance of an order on April 1.
| Rural Advocate News | Friday November 27, 2020 |
USDA Ups FY 2021 Ag Export Forecast, Notes Strong Demand from China U.S. agricultural exports are now expected to reach a value of $152.0 billion in Fiscal Year (FY) 2021, up from $140.5 billion in August, while the value of imports is now seen at $137 billion, up from $136 billion, with higher soybean and corn export values and strong demand seen driving the forecast bump. The outlook sees FY 2021 with an agricultural trade surplus of $15 billion. For FY 2020, USDA recorded exports of $135.9 billion, up slightly from the $135 billion forecast in August, while the value of imports is seen at $133.2 billion, up from the $131.7 billion previously forecast. Those totals put the FY 2020 agricultural trade surplus at just $2.7 billion.
| Rural Advocate News | Friday November 27, 2020 |
Friday Watch List Markets The day after Thanksgiving starts with USDA's weekly export sales report at 7:30 a.m. CST and there's always a chance for a daily export sale announcement at 8 a.m. Traders remain glued to the latest weather forecasts, especially for South America. CFTC's Commitments of Traders report will be released Monday afternoon due to this week's holiday. Weather Friday brings shower and thunderstorm activity to the lower Delta and Gulf Coast. Late stage cotton harvest will be disrupted with this rain. Dry conditions are in store elsewhere. Temperatures will be seasonal to above normal north and central and seasonal to below normal south.
| Rural Advocate News | Wednesday November 25, 2020 |
USA Pork Producers Launch “Give-A-Ham” Food Program The National Pork Producers Council launched the “Give-a-Ham” challenge. It’s a nationwide social media campaign encouraging hog farmers and those involved in the industry to donate pork to organizations that serve people living with food insecurity and then will challenge others to follow suit. The “Give-a-Ham” challenge will run through the end of this year. “With so many Americans struggling with COVID-related financial challenges, this year’s challenge takes on a special meaning,” says NPPC President Howard “A.V.” Roth (Rowth), a Wisconsin hog farmer. “Giving back to our communities is a core value of hog farmers nationwide; it’s so gratifying to come together as an industry this time of year to serve those in need.” Throughout COVID-19, U.S. hog farmers and their numerous state associations that represent them have donated a collective 15.7 million pounds of pork to local food banks through October 31. That total equals 222.8 million servings of pork. “I’m proud to be part of an industry that has already made significant contributions this year to help those less fortunate and look forward to participating in the ‘Give-a-Ham’ challenge, paying it forward with pork,” Roth adds. Participants are encouraged to share their stories on social media using the #GiveaHam hashtag. ********************************************************************************************** Biofuel Groups Ask Court to Hold EPA Accountable on Improper 2016 Waiver A coalition of the nation’s largest biofuels and agricultural trade groups filed a motion in the U.S. District Court of Appeals in Washington, D.C. The motion asks the court to enforce its 2017 decision that required the Environmental Protection Agency to address its improper waiver of 500 million gallons of biofuel demand in the 2016 Renewable Volume Obligation. The coalition includes groups like Growth Energy, Renewable Fuels Association, the National Biodiesel Board, and many others. A statement from the coalition after the filing says, “It’s simply unconscionable that EPA would so brazenly ignore a federal court’s order. Our coalition represents millions of American farm families that shouldn’t have to go to court to hold EPA accountable to the law.” The coalition points out that it’s well past time that the EPA restore the 500-million gallons and focus on restoring integrity to the Renewable Fuels Standard. In the motion, the coalition asks the court to require the EPA to issue a 500-million gallon “curative obligation” on obligated parties to make up for the lost gallons, and to require the EPA to do so no more than six months after the court’s order. The groups also want the court to declare it won’t extend those deadlines. ************************************************************************************ USDA Forecast for Exports Rises $11.5 billion The USDA says U.S. agricultural exports in the Fiscal Year 2021 are projected at $152 billion. That’s up 11.5 billion from the August forecast and is driven higher by rising soybean and corn export values. The agency’s projection for soybean exports is up by 5.9 billion dollars to a record 26.3 billion due to higher unit values, strong demand from China, and record volumes. Corn exports are forecast up 4.2 billion dollars to 13.2 billion as a result of reduced competition, higher unit values, and record volumes. The agency says cotton exports are forecast up 300 million dollars to 5.3 billion based on higher values. Wheat exports are projected at 6.2 billion dollars, up by 200 million dollars on higher unit values and slightly larger volumes. The overall major agricultural bulk commodity exports are forecast to increase 24 percent from the previous projection. Livestock, poultry, and dairy exports are forecast unchanged at 32.3 billion dollars as lower exports of pork, hides, and skins offset increases in beef and poultry. China is once again projected to become the largest U.S. agricultural market, a spot it last held in 2017. Ag imports are forecast at 137 billion dollars, up one billion from August. ********************************************************************************************** Unions Endorse Fudge for Agriculture Secretary Three unions announced they are endorsing Representative Marcia Fudge of Ohio for Agriculture Secretary. The unions are the American Federation of State, County, and Municipal Employees, the American Federation of Teachers, and the United Food and Commercial Workers Union. In a letter to president-elect Joe Biden, the three unions say Fudge has been an advocate for all workers, including meat processing workers, and she has fought attempts to increase the line speeds in meat plants. As a member of the House Ag Committee, the unions say Fudge has “played a role in the recent farm bill reauthorization and for workers on issues important to farmers, ranchers, and the whole agriculture ecosystem.” The unions say Representative Fudge has consistently shown “her willingness to lend her voice to those who need theirs amplified, who listens to all sides, and who knows how to make informed and balanced decisions.” They also applaud her experience as a member of the House Education and Labor Committee, which has jurisdiction over school meals and other child nutrition programs. ********************************************************************************************** How to Handle Thanksgiving Food Safely As Americans enjoy a delicious Thanksgiving meal, USDA says taking the necessary steps toward safe food handling and sanitation will help protect you and your loved ones. The USDA is offering food safety advice to help reduce foodborne illness, including on Thanksgiving Day. “Our data shows that consumers can reduce their likelihood of foodborne illness by focusing on good hand hygiene and other food safety practices,” says Dr. Mindy Brashears, USDA’s Undersecretary for Food Safety. “As home chefs around the country prepare their Thanksgiving meals, proper handwashing, and avoiding cross-contamination in the kitchen are critical to keeping your loved ones safe.” The first step is likely the most obvious, which is washing your hands. Wash them before, during, and after preparing food, especially if it’s raw meat or poultry. Thawing turkeys should never be done on the counter or in hot water, and they must not be left at room temperature for more than two hours. The best method for thawing is in the refrigerator. Also, make sure to cook your stuffing outside the turkey to avoid cross-contamination risk. Chat with a live food safety expert at ask.udsda.gov for more tips. ********************************************************************************************** FFA Members Are Giving Back to Their Communities This Fall FFA members across the country are working together to make sure their communities have the food they need during the holiday season. It’s a part of the National Days of Service program through the National FFA Organization. Traditionally, members who attend the National FFA Convention and Expo participate in the National Days of Service, which gives back to the community hosting the event. Because the event was virtual this year, the National Days of Service program challenged members across the country to give back where they live. It’s a part of a bigger initiative by the organization to have nationwide community engagement programs for the National Days of Service. Chapters are being encouraged to explore four specific areas, including community safety, hunger, health and nutrition, environmental responsibility, and community engagement. “We know that service is an important part of the FFA experience for our members,” says Michele Sullivan, senior manager of local engagement for the National FFA Organization. “With the convention going virtual, FFA was excited to launch the first-ever National Days of Service set to take place across the country.” She says the National FFA Organization plans to continue the virtual National Days of Service beside the in-person event for years to come.
| Rural Advocate News | Wednesday November 25, 2020 |
Washington Insider: New Visibility for Climate Change as Formal Transition Begins Well, there is a beehive of political activity this week as the Trump administration begins its formal cooperation with the Biden transition. Much of the press has reported that the main picks for the next administration are fairly well-known experts. However, one of the choices has stirred more than a little excitement. That is the “special envoy for climate” to be headed by John Kerry. This pick is being seen as elevating the issue to the highest levels in the White House, Bloomberg says. The report says that having a so-called climate czar could help coordinate a whole-of-government approach to confronting global warming, which Biden has referred to as an “existential threat.” Kerry helped broker the landmark Paris climate accord while serving in the Obama administration and has been viewed as a natural fit for the position and as a seasoned politician who enjoys goodwill on Capitol Hill. He said earlier this year that in addition to rejoining the climate agreement the next step is “to lift ambition significantly, on a global basis.” President Donald Trump had quit the accord. Kerry will be a member of Biden's National Security Council, the first time it's included a spot dedicated to climate change, the transition team said. Progressives and others have been lobbying the White House to create a special office dedicated to climate change which they say could be created through executive fiat and akin to a National Security Council on climate. However, some of them said naming Kerry isn't sufficient. “Having held cautious optimism that President-elect Joe Biden could be persuaded to take a bold, determined approach to tacking the climate crisis from day one, we are suddenly alarmed by his choice of John Kerry for climate czar,” Food & Water Action Executive Director Wenonah Hauter said in a statement. “Kerry has been a long-time apologist for fossil fuel fracking and a reliable promoter of false climate solutions like market-based carbon-trading schemes.” Sarah Hunt, who backs conservative energy and climate solutions as CEO of the Joseph Rainey Center for Public Policy, said the announcement signals that Biden will prioritize climate change and energy issues as critical to national security. “Hopefully Kerry will fully integrate energy security—maintaining an affordable, reliable energy supply for the protection of our economy and defense—into the Biden approach to climate security,” Hunt said. In addition to the usual fights over positions in the new administration, National Public Radio uncovered an “even newer” effort. It noted that just over a decade ago, the American Farm Bureau Federation had declared war on legislation to slow down global warming and had had argued that a "cap-and-trade" proposal making its way through Congress would make fuel and fertilizer more expensive and put farmers out of business. Farmers swarmed Capitol Hill wearing caps with the words "Don't Cap Our Future." And it worked. The legislation died, derailing the boldest plan Congress had crafted to cut greenhouse gas emissions. Now the Farm Bureau might be changing course. This week, it announced that formation of a coalition that plans to push the government to adopt dozens of policy changes that would make it easier for farmers to reduce emissions from ag operations. "We're going to have a real common sense, science-based discussion about how we protect the climate, and our farmers want to be part of that," said Zippy Duvall, president of the Farm Bureau. The new Food and Agriculture Climate Alliance brings together groups that have often butted heads on environmental policy. "It feels like the conversation has just really shifted in the past 18 months," says Pipa Elias, director of agriculture for The Nature Conservancy. One reason is that many big food companies have promised to help reduce their greenhouse emissions and they're pushing for changes on the farm—and sometimes paying for such changes. At the press conference launching the new alliance, Barb Glenn, chief executive of the National Association of State Departments of Agriculture, said that "everyone in this unique coalition understands and is witnessing the changing of the climate, and we all want to be involved in impacting it." The alliance didn't quantify impacts of potential policies on greenhouse emissions. Currently, agriculture is responsible for about 10% of the country's emissions of heat-trapping gases. Some estimates are that a reduction in greenhouse emissions from agriculture combined with an increase in forests could get the country 10% to 20% of the way toward net zero emissions in 2050, NPR says. It also notes that climate proposals remain controversial but says it sees signs that the incoming administration is interested in a number of similar approaches. For example, Robert Bonnie, who leads the Biden transition team for the US Department of Agriculture recently called on the USDA to set up a so-called Carbon Bank that would pay farmers to fight climate change. So, we will see. The move to more broadly support climate efforts by producers with food companies in a potentially popular program would seem to have significant potential for success and should be watched closely by producers as it emerges, Washington Insider believes.
| Rural Advocate News | Wednesday November 25, 2020 |
CFAP 2 Payments Top $10.6 Billion Payments under USDA's Coronavirus Food Assistance Program 2 (CFAP 2) now stand at $10.62 billion as of November 22 with 668,067 applications approved so far. Acreage-based payments comprise the largest share of disbursements at $5.23 billion, followed by livestock ($2.86 billion), sales commodities ($1.47 billion), dairy ($1.02 billion) and eggs/broilers ($30.9 million). Payments for corn ($2.89 billion), cattle ($2.32 billion), sales commodities ($1.4 billion), soybeans ($1.1 billion) and milk ($1 billion), are at $1 billion or more, followed by wheat ($580.6 million), hogs/pigs ($474.3 million) and upland cotton ($241.1 million). At the state level, Iowa has seen the largest payment total at $994.1 million, with Nebraska at $723.4 million, Minnesota at $691.5 million, Illinois at $672.1 million, California at $669.3 million, Kansas at $553.3 million, Texas at $515.8 million, South Dakota at $482.5 million, Wisconsin at $456.2 million and North Dakota rounding out the top 10 at $393.9 million. Signup for the program continues through December 11. Payments under CFAP 1 stand at $10.46 billion as USDA looks to close out that effort.
| Rural Advocate News | Wednesday November 25, 2020 |
Trump Looks To Allies For Help Targeting China Senior Trump administration officials told the Wall Street Journal this week they are looking to bring new trade pressure to bear on China as President Donald Trump prepares to leave office. One of the ideas under consideration is creating what the WSJ called “an informal alliance of Western nations,” to take joint action against China when it engages in unfair trade practices. The plan was developed after China erected new trade barriers for Australian exports after Australia's Prime Minister called for an inquiry into the origins of COVID-19 earlier this year, WSJ reported. Under the plan described by administration officials, when China creates trade barriers like those deployed against Australia, other allied nations would purchase the affected goods or provide compensation to the affected partner. Another option would see the group of nations jointly impose tariffs on China in retaliation, WSJ said. The officials said even if the plan to create the new alliance is successful, it would depend on the incoming Biden administration to implement it.
| Rural Advocate News | Wednesday November 25, 2020 |
Wednesday Watch List Markets The day before Thanksgiving has a big lineup of economic reports, starting with weekly U.S. jobless claims, durable goods orders and an update of third-quarter U.S. GDP at 7:30 a.m. CST. At 9 a.m., we'll see reports on October new home sales, U.S. personal incomes and consumer spending. The U.S. Energy Department releases weekly energy inventories at 9:30 a.m., followed by natural gas inventory at 10 a.m. CST. Weather Rain will cover the central and eastern Midwest through the Delta Wednesday. Moisture will benefit winter wheat but will disrupt the final stages of row crop and cotton harvest. Periods of snow and rain are in store in the Northwest, with other crop areas dry.
| Rural Advocate News | Tuesday November 24, 2020 |
Taipei Protestors Decry Easing Of US Pork Import Restrictions Thousands of gathered in Taiwan's capital Taipei on Sunday (November 22) to protest the government's decision to ease restrictions on US pork imports, the Central News Agency (CAN) reported. About 20,000 people joined the annual Autumn Struggle labor demonstration in Taipei, the report cited the opposition Kuomintang (KMT) party as saying. A slew of labor-rights groups organized the protest, with support from KMT and the Taiwan People's Party, to put a focus on the US pork import issue. KMT chairman Johnny Chiang invited President Tsai Ing-wen to a debate about the imports, CNA reported. KMT is seeking a referendum aimed at overturning the government's decision to allow imports of US pork produced using the growth promoter ractopamine.
| Rural Advocate News | Tuesday November 24, 2020 |
Groups Urge Congress to Address Expiring Tax Extenders The American Farm Bureau Federation (AFBF) and over 60 other business, energy and ag groups are urging Congress to extend a slew of tax provisions known as “tax extenders.” The provisions include tax credits aimed at biofuel producers, like the biofuel production tax credit, and others for craft breweries and wineries, AFBF noted. “Allowing these tax extenders to lapse at the end of 2020 would undermine their effectiveness, threaten thousands of jobs in the US economy and cause needless uncertainty for taxpayers at a time when many are coping with severe economic hardship,” the groups said in a letter to congressional leaders.
| Rural Advocate News | Tuesday November 24, 2020 |
Tuesday Watch List Markets With concerns about dry weather in South America, trader attention will be on the latest forecasts and any export sales news that might emerge. News about the latest coronavirus vaccines and when they might be available are also becoming of interest to investors generally. There is one report on U.S. consumer confidence due out at 9 a.m. CST. Weather Rain and snow will cross the central and southern Plains along with the northern and western Midwest Tuesday. Some soil moisture benefit is offered. Other crop areas will be dry.
| Rural Advocate News | Monday November 23, 2020 |
Farmers Earn 12 Cents of Thanksgiving Food Dollar For every dollar Americans spend on Thanksgiving dinner this year, farmers and ranchers will earn about 11.9 cents. The National Farmers Union says that marks a slight drop from 2019 when farmers claimed 12.5 cents of the Thanksgiving food dollar. Though farmers’ smaller share of food expenditures could be blamed on dropping commodity prices in previous years, it’s not the case in 2020. After bottoming out during the pandemic, prices for many ag products have mostly recovered. NFU says the shift can be attributed to higher grocery bills. In the last 12 months, the food prices have risen almost four percent, far ahead of the 1.4 percent rate of overall inflation. The higher food prices are coming at a bad time for American families, who are experiencing higher unemployment rates and food insecurity from COVID-19. Even though consumers are paying four percent more for their food, almost none of the increasing dollars are being passed on to farmers and ranchers. Instead, the NFU says it’s being captured by the processors, packers, distributors, and retailers in between the farm and the table. For example, beef prices are 10 percent higher than last year, but ranchers are getting essentially the same amount for their animals that they did a year ago. ********************************************************************************************** Court Upholds Hog Verdict While Smithfield Settles Other Cases A federal appeals court upheld a 2018 jury verdict that led to monetary damages for the neighbors of a North Carolina hog operation because of smells and noise. The plaintiffs said that made their living close to the hog operation unbearable. However, judges ruled that the jurors’ multimillion-dollar punitive damage awards were unfairly weighed against its corporate assets and must get reconsidered. The decision from the 4th Circuit Court of Appeals in Virginia came just hours before Smithfield Foods announced it put an end to this and other nuisance cases filed by other North Carolina residents. Those cases either were already on appeal by the company or hadn’t yet gone to trial. “We resolved these cases through a settlement that will take into account the divided decision of the court,” says Keira Lombardo, Chief Administrative Officer at Smithfield Foods. The company wouldn’t share the financial terms of the settlements. Attorneys representing the plaintiffs and those in other cases neither confirmed nor mentioned a settlement in the case as of late Thursday. The Houston Chronicle says a statement from the lawyers involved in the appeal praised the court’s decision to affirm the verdict. ************************************************************************************ Ethanol Recovery Threatened by Rising COVID-19 Restrictions U.S. ethanol production has been a big source of demand for domestic corn. However, COVID-19 sharply curbed global fuel consumption. In recent weeks, Reuters says output has chipped away at its deficit versus prior years. However, the resurgence of COVID and increasing restrictions, especially just before the holiday season, threaten to halt a comeback in fuel demand before it can ramp up. The U.S. Energy Information Administration says fuel ethanol output for the week ending on November 13 totaled 962,000 barrels a day, down 1.5 percent from the previous week, which had the highest production level since the week ending on March 20. The last three weeks have been the most productive for American ethanol makers since March. The EIA says seasonal trends are part of the reason why the output is rising. However, when compared with previous years’ production levels, it shows that output is rising out of its COVID slump, though the pace is still slow. The four-week output rose to 960,000 barrels per day through last Friday, down just over eight percent compared to the same period in the previous three years. USDA says corn use for ethanol will be 5.05 billion bushels, up four percent on the year, but down 7.7 percent from the three-year average. ********************************************************************************************** U.K. and Canada Close to a New Trade Agreement The United Kingdom and Canada are close to signing a new trade agreement. Bloomberg says a new trade agreement would replace the existing deal that Britain already has through its European Union membership, which comes to an end on December 31. The agreement would be a boost for officials’ efforts to plot a new course for Britain as a standalone trading nation outside of the EU bloc. People familiar with the matter anonymously told Bloomberg that they expect an announcement within days. If they don’t reach an agreement, the U.K. and Canada would be looking at tariffs on trade starting January 1. That’s when the transition period wraps up, and the U.K. won’t be a part of the CETA agreement that came into effect in 2017. Total trade between the United Kingdom and Canada is estimated to be worth approximately 17 billion pounds, or $23 billion, in 2019. “Trade talks are advancing and making good progress,” says Britain’s Department for International Trade in a written statement. “The U.K. is committed to seeking to secure a continuity trade deal with Canada before the end of the transition period.” The U.K. is Canada’s third-largest export market after the U.S. and China. ********************************************************************************************** World Ag Expo Goes Online with a Unique Approach For the first time in its history, the World Ag Expo is going online on February 9-11. Officials at the International Agri-Center announced the cancellation of the live event back on September 14. The World Ag Expo will work with a company called Map Your Show, an industry leader in event and conference management software. The company’s team has run more than 120 digital trade shows since March. While most digital trade shows limit their online shows to their specific dates, the World Ag Expo is taking more of a year-long approach. “Instead of just a one-week show, we’ll be supporting our exhibitors and the online site throughout 2021,” says Jennifer Fawkes, International Agri-Center Marketing Manager. “Each exhibitor has a micro-site within the show to share information and hold live chats, along with many other options.” As the event organizers, she says World Ag Expo will have online seminars, the Top 10 New Products Contest, and other new content will get released throughout the year. Seminars will be presented online by exhibitors like California State University-Fresno, Irrigation Association, the Center for International Trade Development, and many more. The schedule will be finalized and available in January. ********************************************************************************************** Coalition Releases Farmers’ Guide to the CSP As farmers begin to sign up for the Conservation Stewardship Program across the country, the National Sustainable Agriculture Coalition released its updated “Farmers’ Guide to the CSP.” As interest grows in farming practices that protect natural resources and reduce the impact of climate change, it’s a good time for producers to explore the CSP. The coalition says this guide is a great resource for farmers who want to learn more about the program, as well as those who are thinking about enrolling in the CSP. The Ag Coalition has been a strong advocate for the program since it first began years ago. The CSP is designed to reward farmers who apply a conservation ethic across their entire operation. It offers five-year payments to producers who take on highly beneficial conservation practices on their farms that build soil health, improve water quality, and benefit wildlife. Some of those practices include cover crops, conservation buffers, rotational grazing, and many others. The guide also helps producers walk through the application and implementation processes for CSP. The guide is a free download at www.sustainableagriculture.net/publications.
| Rural Advocate News | Monday November 23, 2020 |
Washington Insider: Internal Financial Policy Fight The New York Times is reporting that Treasury Secretary Steven Mnuchin had announced last week the discontinuation of several Fed programs, including those that support the markets for corporate bonds and municipal debt and one that extends loans to midsize businesses. The emergency efforts expire at the end of 2020 but investors had expected some or all of them to be kept operational as the virus continues to pose economic risks. Numerous pandemic-era programs are run by the Fed but use Treasury money to insure against losses. They have provided an important backstop that has calmed critical markets and removing them could leave significant corners of the financial world vulnerable to the type of volatility that cascaded through the system as virus fears mounted in the spring. By asking the Fed to return unused funds, Mnuchin could prevent President-elect Joe Biden's incoming Treasury secretary from quickly restarting the efforts at scale in 2021. “The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy,” the Fed said in a statement. The emergency programs were backed by $454 billion that Congress appropriated in March as part of a broader pandemic response package. Because of the way the Fed's emergency lending powers work, Jerome Powell, the Fed chair, needs the Treasury secretary's signoff to make major changes to the programs' terms. Extending the end date counts as one of the changes that need approval. The decision to close these programs and remove the funding appeared to come as a surprise to the Fed, which received a letter announcing the Treasury's intent to claw the money back on Thursday afternoon. Earlier this month, Powell had said the central bank and Treasury were just beginning to discuss whether to extend the programs. Mnuchin did agree to extend other emergency loan programs that are not backed by the congressional appropriation, including ones that service the short-term market for corporate debt, one for money market funds, and one that backstops government small-business loans. The Fed avoids taking credit losses when extending loans and throughout the pandemic crisis it has asked for Treasury backup for its riskier programs. If it returns any unused money that the Treasury has already dedicated to support the programs, as Mr. Mnuchin requested, the Biden administration will have less financial backup to restart the programs, the Times said. That's because the congressional appropriation—$195 billion of which has been earmarked to specific Fed programs—cannot be used to make new loans after the end of the year. But while the law prohibits the treasury from putting money into the Fed's facilities after 2020, it does not obviously prevent the Fed from using already-earmarked treasury funding to insure its own loans and bond purchases. “The loans, loan guarantees and investing that the treasury does is the applicable language,” said Peter Conti-Brown, a lawyer and Fed historian at the University of Pennsylvania. He said that while it may be possible to read the law as preventing new Fed loans, that is not the “obvious reading.” Still, Mnuchin's move could leave the government with fewer options to help the economy just as the new administration takes office, the Times says. “Treasury is right that a limited set of objectives have been achieved in terms of stabilizing bond markets,” Jason Furman, a prominent Democratic economist, said. “But what is the downside to continuing them as insurance against worse developments?” Many of the Fed's programs, including one that buys state and local debt and another that encourages banks to lend to small- and midsize businesses, have been lightly used. But that is because they were designed as backstops—meaning that borrowers would likely only use them when times are bad. With coronavirus cases on the rise, the economy may sour again, making the programs more necessary. As recently as last week, Powell warned of the potential for economic scarring and said that the economic recovery had “a long way to go.” But Treasury officials have expressed optimism that the economy is poised for a steady rebound and that the likely rollout of a vaccine by the end of the year further improves the economic picture. Senator Patrick Toomey, Republican of Pennsylvania, who had been pushing Mr. Mnuchin to end the programs, applauded the decision. “Congress's intent was clear: These facilities were to be temporary, to provide liquidity, and to cease operations by the end of 2020.” However, treasury's move prompted concern from Democrats. Bharat Ramamurti, a Democrat who sits on the congressional oversight body in charge of reviewing the various Fed and treasury programs, suggested that, legally, the Fed was under no obligation to give back the funds. And, Secretary Mnuchin said Congress wanted key economic supports to end by Dec. 31, a view he expressed only after the vote count in the presidential election. So, we will see. It would be less than surprising if a departing administration were to leave the odd negative trap surprise for the incoming crew—but the less of that sort of thing that takes place, the better. Clearly, the public is likely to have little tolerance for such measures given the continuing fight with both the virus and the economic pullback Washington Insider believes.
| Rural Advocate News | Monday November 23, 2020 |
Infrastructure Investments May Be On The Table In 2021 Lawmakers are looking at infrastructure one potential area ripe for bipartisan compromise under the Biden administration, the Wall Street Journal reports, as Democrats and Republicans face the possibility of another two years of divided government. Efforts to craft a multiyear infrastructure bill repeatedly fell apart during the Trump administration, and disagreements on the scope of the legislation and how to pay for it will persist under the new president. Congress faces the expiration of the existing spending plan known as the highway bill next Sept. 30, and a new measure could become a vehicle Joe Biden's proposed $2 trillion plan for transportation and other infrastructure. Lawmakers see the desire for economic stimulus as the country recovers from the coronavirus pandemic as a potential catalyst for a major infrastructure bill.
| Rural Advocate News | Monday November 23, 2020 |
WTO Trade Barometer Sees Trade Rebound World merchandise trade has rebounded strongly following major declines at the beginning of the COVID-19 pandemic, but the outlook going forward is unclear as cases again rise in Europe and North America, according to the latest update of the World Trade Organization's (WTO) Good Trade Barometer. The barometer provides real-time information on the trajectory of world merchandise trade relative to recent trends. The index's current reading of 100.7 is just above the baseline of 100, which indicates trade growth in line with the medium-term trend. It marks a major rebound form the record low 84.5 reading seen in August. “All of the barometer's component indices were rising in the latest months, with some climbing above their medium-run trends while others remained depressed,” WTO detailed. Export orders and agricultural raw materials sub-indices “finished firmly above trend.” Meanwhile, container shipping and automotive product indices recovered to near trend, and air freight and electronic components indices remained below trend, WTO said. Despite the recent rebound, WTO warned “trade related uncertainty remains high.” That uncertainty is linked to the second wave of infections, which “is already under way in Europe and North America, leading to renewed lockdowns that could trigger another round of business closures and financial distress,” it said.
| Rural Advocate News | Monday November 23, 2020 |
Monday Watch List Markets Monday before Thanksgiving starts what is usually a quiet week of trading that can also be prone to surprises. Traders will check out the latest weather forecasts, especially for South America where the new crop season is getting underway. USDA releases its weekly report of grain export inspections at 10 a.m. CST, followed by monthly cold storage at 2 p.m. and crop progress at 3 p.m. Weather Light rain and snow showers are in store for the southwest Plains Monday, offering some moisture potential for winter wheat. Similar precipitation is also indicated for the northwestern U.S. crop areas. Dry conditions will be in place elsewhere. Temperatures will be above normal north and seasonal south.
| Rural Advocate News | Friday November 20, 2020 |
Week Ahead Watch List Monday, November 23 Ag Reports: Export Inspections 10:00 a.m., Cold Storage 2:00 p.m., Crop Progress 3:00 p.m. Tuesday, November 24 No Ag Reports Scheduled Wednesday, November 25 Ag Reports: Dairy Products Sales 2:00 p.m. Thursday, November 26 Thanksgiving Holiday - No Ag Reports Scheduled Friday, November 27 Ag Reports: Export Sales 7:30 a.m
| Rural Advocate News | Friday November 20, 2020 |
FSA Reverses Rule on Family Eligibility for Farm Subsidies The Farm Service Agency restored the previous definitions of terms like “active personal management, significant contribution, and related phrasing” in a rule regarding farm program subsidy eligibility and payment limitations. FSA Administrator Richard Fordyce says the change is more of a “correction.” He says, “These revisions mean that members of a family farm operation are not subject to the more stringent management requirements applicable to farming operations comprised of non-family members established in the 2014 Farm Bill and further supported by the 2018 Farm Bill.” USDA also says that the more restrictive definitions only apply to farming operations comprised of non-family members that are subject to a limit in the number of farm managers seeking to qualify as actively engaged in farming based on a contribution of active personal management alone, as it was established in the 2018 Farm Bill. During an interview, Fordyce says, “It wasn’t our intention to bring family farm entities under the more restrictive provisions. It wasn’t Congress’ intent for us to do that.” The Hagstrom Report says the correction to the rule will be published right away in the Federal Register and goes into effect immediately. ********************************************************************************************** NCBA Pleased with National Environmental Policy Act Changes The U.S. Forest Service updated the agency’s National Environmental Policy Act regulations, and the National Cattlemen’s Beef Association and the Public Lands Council are pleased with the changes. Kaitlynn Glover is the NCBA Director of Natural Resources and Executive Director of the Public Lands Council. She says the announcement is the product of decades of work by livestock producers who have told the Forest Service and other federal agencies for years that NEPA regulations needed serious improvement. “This rule formalizes changes that will allow the U.S. Forest Service to be better partners to ranchers and stakeholders who depend on healthy forests and grasslands,” Glover says. “These are common-sense changes that add clarity by streamlining NEPA processes and ensuring that agencies are not spending time on unnecessarily duplicative NEPA reviews.” Ag Secretary Sonny Perdue says, “these changes will ensure we do the appropriate level of environmental analysis to fit the work, locations, and conditions.” Perdue notes that the new categorical exclusions will ultimately improve our ability to maintain and repair the infrastructure people depend on to use and enjoy their national forests.” ********************************************************************************************** Cost of Thanksgiving Dinner Lowest in Ten Years Thanksgiving is going to be different this year because of COVID-19. There is one tradition that continues this year, and it’s the American Farm Bureau’s annual survey on the cost of a classic Thanksgiving dinner. The 35th Farm Bureau survey says the average cost of this year’s Thanksgiving meal for 10 is $46.90, which breaks down to less than $5 per person. It’s a $2 decrease from last year’s average cost of $48.91. “The average cost of this year’s Thanksgiving dinner is the lowest it’s been since 2010,” says Farm Bureau Chief Economist John Newton. “Pricing whole turkeys as ‘loss-leaders’ to entice shoppers and move product is a strategy we’re seeing retailers use that’s increasingly common the closer we get to the holiday.” The centerpiece on most Thanksgiving tables is the turkey, which costs less than last year. A 16-pound bird will cost $19.39, about $1.21 per pound, and is seven percent lower-priced than in 2019. Besides turkey, other foods that showed price declines include whipping cream and sweet potatoes. Foods with modest cost increases include dinner rolls, cubed bread stuffing, and pumpkin pie mix. ********************************************************************************************** Lawsuit Alleges Tyson Foods Managers Bet on Health of Workers Details are coming out about a wrongful death lawsuit against Tyson Foods and its Waterloo, Iowa, processing plant. The suit alleges that during the initial stages of COVID-19, the company ordered employees to report to work, while supervisors privately wagered money on the number of workers who would be sickened by the virus. The Iowa Capital Dispatch says the lawsuit alleges that Tyson Foods is guilty of a “willful and wanton disregard for workplace safety.” In a written statement this week, Tyson says it was “saddened by the loss of any Tyson team member and sympathize with their families.” The company won’t comment on specific aspects of the suit but did say it’s “top priority is the health and safety of its workers, and they’ve implemented a host of protective measures at Waterloo and other facilities that meet or exceed CDC and OSHA guidelines for preventing COVID-19.” At least five Waterloo plant employees have died from COVID. According to the local county health department, over 1,000 workers at the plant, or more than a third of the total workforce, contracted the virus. ************************************************************************************ Growth Energy Outlines 2021 Policy Priorities Growth Energy CEO Emily Skor outlined the biofuels industry’s top federal priorities for 2021, highlighting key measures that elected leaders must take to protect the climate and revitalize rural communities. Some of their other key priorities will offer more consumers access to clean, affordable options to fuel their cars. “Biofuels, including plant-based ethanol, are critical tools for decarbonizing America’s existing transportation fleet and supporting our nation’s farmers and rural communities,” she says. “Solvable challenges in this area await leaders in Congress and the next administration.” While officials are looking at climate solutions, she says biofuels will be a key to meeting the nation’s goals for the transportation sector, which is America’s largest source of greenhouse gas emissions. Their priorities include restoring the integrity of the Renewable Fuels Standard, including expanded infrastructure for higher biofuel blends. Growth Energy also wants to see expanded roles for biofuels in a clean energy future both at home and abroad. They’re very interested in seeing trade barriers broken down in low-carbon ethanol markets like Brazil, Mexico, and China, as well as in leveraging the benefits of biofuels in the Paris Climate Accord. ********************************************************************************************** Brexit Talks Suspended After COVID Diagnosis Brexit negotiations are suspended after a member of the European Union’s negotiating team tested positive for COVID-19. However, Reuters says officials are still working remotely to get an EU-United Kingdom trade deal on the books that would enter into full force in less than two months. Finland’s European affairs minister says the talks could still succeed, and a comprehensive deal can be done by the time Britain’s transition out of the EU wraps up on December 31. Negotiators told Reuters in a phone interview that the negotiating stage is “critical.” They say the time pressure is huge, but both sides haven’t given up their faith that the deal will get done. The chief Brexit negotiators are the EU’s Michael Barnier and the UK’s David Frost. Barnier says on Twitter that the teams “will continue their work in full respect of safety guidelines.” Some of the EU member-states like the Netherlands, France, Belgium, and Spain have asked the executive European Commission, which is negotiating with Britain on behalf of the bloc, to update emergency plans for a possible no-deal on Brexit. France’s representative on the Commission says Britain must accept fair competition rules for companies or be shut out of the EU’s single market of 450 million consumers in 2021.
| Rural Advocate News | Friday November 20, 2020 |
Friday Watch List Markets Traders will continue to keep a close eye on South American weather forecasts and any trade news that develops. At 2 p.m. CST, USDA issues its cattle on-feed report for October 1 with analysts in Dow Jones' survey expecting a 1.8% increase from a year ago. Weather Dry and mild conditions will cover all crop areas Friday. This combination favors the finishing of row crop harvest and fall field work. Colder conditions will be confined to far northern areas.
| Rural Advocate News | Friday November 20, 2020 |
Washington Insider: Stimulus Fights Intensify There is plenty to fight about now as the nation works to move forward in its transition to a new government amid a growing coronavirus outbreak. At the same time, Bloomberg is reporting that President Trump's chief of staff is moving to “put the onus on Congress” as the White House retreats on proposed stimulus packages. Chief of Staff Mark Meadows, once a lead negotiator working on a new coronavirus stimulus package, is now proclaiming that it's up to Congress to proceed with any talks, even though the issue has been a “priority” for the president. “Obviously those discussions — if they happen — will be dictated by the House and the Senate,” Meadows told reporters when asked about the negotiations after a meeting with Senate Majority Leader Mitch McConnell, R-Ky. “We haven't seen a real willingness by our House colleagues to look at that.” Meadow's comments came a day after House Speaker Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer D-N.Y., urged McConnell to engage in talks. McConnell then “ridiculed” the $2.4 trillion Democratic measure that Pelosi and Schumer say must be the starting point for stimulus talks. “The problem is that their proposal is a multitrillion-dollar laughingstock” that “never had a chance of becoming law,” McConnell said. McConnell reiterated his demand that any package be “targeted” and around $500 billion. He hadn't yet replied to the Pelosi—Schumer letter by mid-day Thursday, Bloomberg said but Senate Democrats upped the ante by introducing a new proposal to provide $10 billion for personal protection equipment in the next package, another sign of how far apart the two sides remain. The comments came as numerous press reports are highlighting new lockdowns and anticipate new months-long survival tests until Covid-19 vaccines become widely available. More than 1 million US virus cases were reported in the recent week, leading states including Michigan, New Mexico, Ohio, and California to set tighter rules on movement and commerce, Bloomberg said. A wide swath of businesses — restaurants, hotels, retail shops, bowling alleys and theaters — will confront a devastating winter, if they are able to remain open at all. Many workers face the holidays with food and shelter in doubt. “I'm looking for a sign of life,” said Jon Forman, founder and president of Cleveland Cinemas, an operator of four independent theaters in the metropolitan area that dismissed 90% of the staff. “We will not stay open through thick and thin.” Senior citizens in long-term care have faced the worst of the pandemic, with no signs of stopping. States last week reported more than 29,000 new Covid-19 cases in places such as nursing homes and assisted-living facilities. Counts rose about 17% week over week, the steepest acceleration since May, when the COVID Tracking Project began tallying the data. Under 1% of the US population lives in such homes, but COVID fatalities there account for 40% of the national death toll, Bloomberg said. In addition, the New York Times reported that the US Treasury Department's Office of Financial Research (OFR) warned on Wednesday that there were “significant downside risks” to the nation's overall financial stability from the economic fallout of the coronavirus pandemic and predicted that many households and businesses might be unable to recover without additional government assistance. In its annual report to Congress, the OFR detailed the gravity of the threat that the financial system faced earlier this year as businesses were shut down across the United States and officials imposed stay-at-home orders around much of the country. The OFR praised government efforts to support the economy but suggested that substantial uncertainty remains because of the unpredictable path of the virus. “Due to the novelty of the virus, the unknowns of its course and the response of health policy, many businesses are unsure when or even if they will resume normal operations and what new safeguards they must erect,” the report said. “Such uncertainty can weigh heavily on economic activity.” The OFR was created out of the Dodd-Frank Act of 2010 and is a bureau within the Treasury Department. The report said that the “considerable” monetary and fiscal stimulus implemented earlier this year did serve as a bridge to an economic recovery, but that macroeconomic risk still remains “unusually high.” Credit risk remains one of the biggest concerns, as lenders to the commercial real estate, energy and “high touch” sectors face big losses from defaults and bankruptcies. Meanwhile, a return to elevated valuations for risky assets could lead to another round of market stress despite efforts by the Federal Reserve to stabilize markets earlier this year. The OFR noted that the federal debt is a long-term risk but suggested that there were more immediate concerns facing the economy. “Many households and businesses may be unable to recover absent additional government support,” the report said. So, we will see. Pressure clearly is growing for the federal government to provide new stimuli, but concerns are also associated with some of the conventional approaches proposed. The intensity of the new, more recent outbreaks adds uncertainty to the outlook, as does the real time schedule for vaccine relief. These fights are likely to be prolonged and increasingly controversial and should be watched closely as they proceed, Washington Insider believes.
| Rural Advocate News | Friday November 20, 2020 |
House Bill Would Require EPA To Act On Biofuels Applications A House bill that would require the Environmental Protection Agency (EPA) to act on outstanding Renewable Fuel Standard (RFS) biofuel pathway applications was introduced by Reps. Cheri Bustos, D-Ill., and Jim Hagedorn, R-Minn. The legislation, titled the Streamlining Advanced Biofuels Registration Act, would also compel the agency to accept biofuel applications if, after 90 days, the fuel could participate in at least one state's clean transportation program. The RFS requires energy producers to utilize low-carbon, renewable fuels such as cellulosic biomass, but EPA must approve applications on behalf of biofuels producers and has refused to act on dozens of applications, Hagedorn and Bustos said. The changes included in the bill will help lower greenhouse gas (GHG) emissions by easing the regulatory burden for producers using cellulosic biomass to produce renewable fuel, the lawmakers said. “By cutting red tape and ensuring that producers receive a timely response from the EPA, we can encourage the use of cellulosic biomass in low-carbon, renewable fuel production and continue to create cleaner, more environmentally-friendly fuels,” Bustos said. “By forcing the EPA to make timely decisions on these applications, we are opening new markets that will power southern Minnesota communities and the nation's economy. I'm extremely pleased to work in bipartisan fashion with Congresswoman Bustos on this important initiative,” Hagedorn said. Sens. John Thune, R-S.D., and Jeanne Shaheen, D-N.H., have introduced companion legislation in the Senate.
| Rural Advocate News | Friday November 20, 2020 |
FCMSA Unveils HOS Ag Commodity, Livestock Definition Rule An interim final rule clarifying agricultural commodity and livestock definitions in hours-of-service (HOS) regulations was unveiled Thursday (November 19) by the Department of Transportation's (DOT) Federal Motor Carrier Safety Administration (FMCSA). The rule has not yet been scheduled for publication in the Federal Register. During state-defined harvesting and planting seasons haulers transporting agricultural commodities, including livestock, are exempt from the HOS requirements from the source of the commodities to a location within a 150-air-mile radius from the source. However, amid indications the definition of “agricultural commodities” was not well understood or enforced consistently relative to the HOS exemption, FCMSA began a rulemaking to clarify the term in July 2019. The interim final rule defines the terms “any agricultural commodity,” “livestock,” and “non-processed food” as used in the definition of agricultural commodity under HOS regulations. “The agriculture industry is vital to our nation, and this new rule will provide clarity and offer additional flexibility to farmers and commercial drivers, while maintaining the highest level of safety,” said US Transportation Secretary Elaine Chao. USDA Secretary Sonny Perdue thanked DOT for working with his department “to come up with common sense definitions for agricultural commodities and livestock that meet both the needs of agricultural haulers and public safety – critical concerns for all of trucking.” The interim final rule will take effect 15 days after publication in the Federal Register and comments will be accepted for 30 days following publication.
| Rural Advocate News | Thursday November 19, 2020 |
Ag Lender Survey Reveals Bankers Top Concerns The Fall 2020 Agricultural Lender Survey report shows that ag lenders continue to remain focused on credit quality, even as the farm economy continues to work through the prolonged downturn caused by COVID-19. The survey is from the American Bankers Association and the Federal Agricultural Mortgage Corporation, also known as Farmer Mac. When it comes to their customers, lenders continue to be most concerned about liquidity, income, and leverage. Uncertainty regarding tariffs and trade, the weather, the impacts of COVID-19, and the resulting downturn are close behind. “Facing a global pandemic and an unprecedented economic downturn, agricultural lenders’ concerns for both their institutions and ag borrowers remain focused on business fundamentals,” says Tyler Mondres, director of research at ABA. “Nevertheless, lenders remain prepared to continue providing support to the farm economy through these challenging times.” The ag economy and farm income remain stressed in 2020. On average, lenders report that just under 51 percent of their ag borrowers were profitable in 2020, down from 57 percent last year. About half of the lenders don’t expect profitability to improve in 2021. ********************************************************************************************** Grassley Praises Report on Farm Payment Limitations The Government Accountability Office says that the USDA hasn’t been reviewing Farm Service Agency state compliance with rules regarding farm program eligibility. “The lack of oversight and accountability has created a welfare system for some joint-ventures and general partnerships, particularly in the South,” says Iowa Senator Chuck Grassley. The GAO report shows that 19 of the top 20 farms that received payments in 2016 and 2017 are in the South. “Farm payments should only go to those with dirt under their fingernails,” Grassley adds. “Congress must fix this broken system in the next farm bill.” Since the last GAO report in 2013, the 2020 report says USDA has made some progress in completing and reporting on reviews to determine if recipients of farm program payments meet the requirements for being actively engaged in farming. However, USDA doesn’t systematically monitor its performance of compliance reviews, which are the responsibility of FSA state offices. The report says improving the accuracy and monitoring of tracking data would help management to better oversee state offices’ completion of assigned reviews to make sure all the members of a farming operation who receive payments are actively engaged in farming. ********************************************************************************************** Ag Community Wants EU Trade Tariffs Removed America’s top agriculture commodity groups and trade associations sent a letter to U.S. Trade Representative Robert Lighthizer talking about European Union retaliatory tariffs on American goods. The groups, including Farmers for Free Trade, are asking Lighthizer to “deepen trade discussions” to help bring about World Trade Organization compliance and removal of the EU tariffs that target U.S. food and ag exports. On November 10, the EU imposed duties on certain cheeses, agricultural equipment, distilled spirits, potatoes, nuts, fruits, juices, chocolate, and ketchup. “Farmers are battling to stay above water and any new tariff in this time of crisis is a big concern,” says Brian Kuehl (KEEL), Co-Executive Director of Famers for Free Trade. “We know these tariffs are part of a long legal battle, but anytime farmers become collateral damage is unacceptable.” The letter says American farmers need stability, and that means predictable exports into markets like the European Union. The groups are urging this administration and the next one to double down on their effort to resolve this dispute in a manner that frees American farmers from harmful tariffs. ********************************************************************************************** Chicken: The Number One COVID-19 Protein Over the past year, as Americans cooked more food in their homes than they had before, chicken has become the top choice for a healthy and convenient protein that the entire family can enjoy. Approximately 75 percent of Americans who eat chicken say they make it at home at least once a week. During the past nine months of COVID-19, retail chicken sales have increased $1.3 billion, up over 19 percent from the same period in 2019. The National Chicken Council unveiled the findings of a new survey on better understanding chicken consumption patterns and preferences in the U.S. The survey includes insight into the impact of the pandemic on chicken consumption habits, showing that half of Americans who eat chicken say they have eaten it more than any other protein during COVID-19. The survey found that chicken has been popular because it’s easy to prepare and a versatile protein. With COVID-19 shifting some holiday plans, chicken might help make it a happy holiday as 50 percent of Americans who eat chicken say they’d prefer it to ham or turkey at a holiday meal. 52 percent of Americans prefer grilled chicken, while 48 percent prefer fried chicken. ************************************************************************************ Streamlining Biofuels Registration Act Introduced in the House Democrat Cheri Bustos of Illinois and Republican Jim Hagedorn of Minnesota introduced the Streamlining Advanced Biofuels Registration Act of 2020 into the House of Representatives. The legislation would encourage low-carbon fuel production and increase the production of cellulosic biomass into renewable fuels. It would expedite the approval process at the Environmental Protection Agency for low-carbon biofuel pathways, an issue that has stalled technological progress for years. “Unnecessary delays have stalled progress on the biofuels industry’s ability to harness clean energy from agricultural residue, corn fiber, and waste,” says Growth Energy CEO Emily Skor. “We know that cellulosic technologies can reduce greenhouse gas emissions by 100 percent or more, providing options for negative-emissions liquid fuels and providing a low-cost alternative to petroleum-based aromatics that poison our air and threaten our health.” She says the legislation will help jumpstart growth in these innovative technologies at a time when revitalizing rural communities has never been more important. A companion bill has been introduced in the Senate by Republican John Thune of South Dakota and Jeanne Shaheen, a New Hampshire Democrat. ********************************************************************************************** National 4-H Council Awarded $3 Million to Support 4-H at Home The USDA’s National Institute of Food and Agriculture investing more than $10.5 million to support educators across the country. Funds are going to technical schools, community and junior colleges, and youth development programs, including the Cooperative Extension’s 4-H program. NIFA is giving a $3 million grant to the National 4-H Council to support the continued development of 4-H at Home, which is the positive youth development digital platform at www.4-H.org. 4-H at Home is designed to meet the growing needs for virtual and non-virtual educational resources that can easily be used by families at home or rapidly adopted by educators and Extension personnel. It’s intended to “level the playing field” and address the widening opportunity gap for youth and families as a result of COVID-19. Since the onset of COVID-19, 4-H educators are even more dedicated to ensuring kids, families, and communities have the support they need, including educational resources, caring adult mentors, and perhaps most importantly, a sense of community. A 4-H news release says, “Thanks to the significant grant from NIFA, our Cooperative Extension Network can expand its reach through 4-H at Home by providing effective learning experiences to meet the needs of families across the country.”
| Rural Advocate News | Thursday November 19, 2020 |
Washington Insider: Stimulus Fight Resumes Bloomberg is reporting this week that to nobody's surprise, Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., on Tuesday asked Senate Majority Leader Mitch McConnell, R-Ky., to resume talks on an additional stimulus package. However, McConnell is insisting on a “targeted package,” Bloomberg said. “We write to request that you join us at the negotiating table this week so that we can work towards a bipartisan, bicameral COVID-19 relief agreement,” Pelosi and Schumer wrote. They said they were encouraged by McConnell's comments after Election Day calling for stimulus and saying “it's a possibility we will do more for state and local governments,” one of the key areas of disagreement. McConnell's office, asked to respond to the call for talks, referred to the GOP leader's comments from earlier on Tuesday, when he reiterated his support for a bill of about $500 billion. The Democratic call for talks with McConnell followed the decision by the White House and President Donald Trump to pull back from their involvement after months of negotiations failed to yield a deal. The administration had offered to back a $1.9 trillion package before the Nov. 3 election but the difference between the two sides continues to be wide as Democrats have been demanding $2.4 trillion. “Millions of unemployed Americans and those facing eviction and hunger demand action from their leaders. The time to act is upon us like never before,” Pelosi and Schumer wrote. Senate Republicans in July had put forward a $1 trillion stimulus bill that included direct stimulus checks, only to pare that back as the economy began to bounce back. They have been especially resistant to Democratic demands for more than $400 billion in aid to state and local governments with budget shortfalls due to lost revenue during the pandemic. President-elect Joe Biden on Monday called on Congress to act on a stimulus bill this year, before he is inaugurated, but forecasters see that as unlikely. “I am open to a targeted bill roughly of the amount that we recommended, a half trillion dollars, which is not nothing,” McConnell said Tuesday. He also reiterated his call for liability protections from COVID-19 lawsuits, which Democrats have opposed. Also, some virus-related relief could end up attached to the must-pass spending bill needed to keep the government open after Dec. 11. House Democrats and Senate Republicans are negotiating behind closed doors this week on an outline for the 12-part $1.4 trillion bill and are reporting that progress is being made. Treasury Secretary Mnuchin had led talks with Democrats on new stimulus packages before the election. However, more recently the administration said it is stepping back and leaving those talks to McConnell. As a result, Biden emphasized with Pelosi and Schumer the “urgent need” for Congress to provide resources to deal with the pandemic, Bloomberg said. At the same time, support for additional stimulus continues to come from Federal Reserve Chair Jerome Powell who earlier called a new fiscal stimulus package as “absolutely essential” to the U.S. economic recovery. He also argued that even if spending proved more than necessary, it “will not go to waste.” And in a note regarding possible benefits of successful coronavirus vaccines, The Hill notes this week that while preliminary results from several highly effective vaccine candidates are boosting hopes of a quicker end to the pandemic and a faster recovery, and that “while the light at the end of the tunnel may seem brighter today than it was 10 days ago, economists fear the U.S. still has daunting obstacles in its path.” The report notes that coronavirus cases and hospitalizations “are shattering state records across the country,” and as cases climb, unemployed workers and struggling businesses “may run out of ways to stay afloat between now and widespread distribution of a vaccine.” This is especially true since several crucial government aid programs also are set to expire at the end of December, setting up a potential flood of foreclosures, evictions and bankruptcies. As a result, The Hill says economists are warning that if the White House and Congress are unable to bridge the gap between proposals, millions of Americans could suffer before the pandemic and economy turn around. The report cites Adam Ozimek who worries that, “If the government doesn't do more, then we could be looking at a lot more businesses going under, the recovery backtracking and heading in reverse, and a bigger economic hole to dig our way out of.” Ozimek is chief economist at Upwork. So, we will see. The political situation is as toxic as ever even as the transition appears to be moving forward. The future roles of the government are expected to continue to be critical and should be watched closely as these debates intensify, Washington Insider believes.
| Rural Advocate News | Thursday November 19, 2020 |
OMB Completes Review On USDA Plan For Child Nutrition Program Flexibilities The Office of Management and Budget (OMB) has completed its review of a proposed rule from USDA that identifies flexibilities for milk, whole grains, and sodium requirements under Child Nutrition Programs. The plan was forwarded to OMB October 28 and one meeting was scheduled on the rule—with the Center for Science in the Public Interest (CSPI) and NANA (National Alliance for Nutrition and Activity) coalition. The proposed rule comes after a court in April sent the final rule released in 2019 back to USDA for “further proceedings.” CSPI was party to the suit on USDA's final rule, arguing the final rule did not reflect a logical outgrowth of the interim final rule originally issued by USDA. The U.S. District Court in Maryland agreed, saying the final rule was not keeping with the “original scheme” of the notice and comments that were filed on the interim final rule, as that “spoke exclusively to terms of delaying compliance requirements, not abandoning the compliance requirements altogether.” The final rule delayed the compliance date for some provisions and eliminated another along with changing requirements on whole grains so that only half of the grain-based foods needed to be whole-grain-rich. It is not clear when the proposed rule will be released, but child nutrition advocates like CSPI and others will obviously monitor the situation closely to make sure USDA followed the court action.
| Rural Advocate News | Thursday November 19, 2020 |
Groups See Potential Farmer Revenue Stream In Climate Efforts Major farm and environmental groups announced the formation of the Food and Agriculture Climate Alliance, a coalition focused on pushing climate policy priorities. The American Farm Bureau Federation, Environmental Defense Fund, National Council of Farmer Cooperatives, and National Farmers Union co-chair the alliance. The group established more than 40 policy recommendations on soil health, livestock and dairy, forests and wood products, energy, research, and food loss and waste for Congress and the presidential administration. The plan unveiled by the group contains objectives and specific federal policy moves the groups view as critical to achieving those goals. Explaining the catalyst for creating the alliance, AFBF President Zippy Duvall said the groups were able to break through “historical barriers” and did so with the recognition that “our collective voices are stronger than our individual voice” for advancing new climate policies. The three guiding principles of the joint recommendations are to support voluntary, market- and incentive-based policies, advance science-based outcomes and promote resilience and help rural economies better adapt to climate change, the alliance said, with six key areas of focus: Soil health, livestock and dairy, forests and wood products, energy, research and food loss and waste. The groups urge a “menu of voluntary federal policy options” to encourage carbon sequestration in the soil, including a new tax credit modelled after the existing “45Q” carbon sequestration credit and a new carbon bank backed by USDA's Commodity Credit Corporation (CCC). The CCC carbon bank proposal echoes a proposal included in Joe Biden's campaign climate plan. The key for farmer support for any such plan will be how a carbon market is established.
| Rural Advocate News | Thursday November 19, 2020 |
Thursday Watch List Markets U.S. weekly export sales, U.S. jobless claims and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CST Thursday. The Energy Department follows with its weekly report of natural gas inventory at 9:30 a.m. The latest South American weather forecasts and any trade news will also be noted. Weather Thursday will be mainly dry across primary crop areas, favorable for late stage harvest. Very warm temperatures and strong winds in the southern Plains through eastern Midwest will bring further drying in winter wheat areas and increased fire threat. Winter advisories are noted in the far northern Plains for wintry mix precipitation Thursday evening.
| Rural Advocate News | Wednesday November 18, 2020 |
Alliance Publishes Unprecedented Climate Change Recommendations An alliance of groups that represent farmers, forest owners, the food sector, state governments, and environmental advocates released an unprecedented list of recommendations to guide Federal climate policy development. The effort is called the Food and Agriculture Climate Alliance, and it was formed in February by the four groups that co-chair the alliance: the American Farm Bureau Federation, Environmental Defense Fund, the National Council of Farmer Cooperatives, and the National Farmers Union. The alliance has expanded to include several other groups since February. The group developed over 40 recommendations for federal policymakers, with those recommendations based on three principles: climate policies must be built upon voluntary, incentive-based programs and market-driven opportunities, they must promote resilience and adaptation in rural communities, and they must be science-based. These recommendations share an overall goal of doing no harm. “We are proud to have broken through historical barriers to form this unique alliance focused on climate policy,” says AFB President Zippy Duvall. “It was important to me to reject punitive climate policy ideas of the past in favor of policies that respect farmers and support positive change, and our final recommendations do just that.” ********************************************************************************************** Progressives Fight Against Heitkamp as Possible USDA Boss Progressives in agriculture appear to be making a push to keep former North Dakota Senator Heidi Heitkamp out of the USDA Secretary’s office in a Biden administration. News Break Dot Com says the conflict is ramping up as Representative Marcia Fudge of Ohio has begun to campaign for the job. USDA is a $150 billion department that oversees ag policy, supports the farm economy, and feeds millions of low-income households. Heitkamp has been seen as a top contender for the spot because of her moderate politics and friendly relationship with the agricultural sector. However, a coalition is working behind the scenes to eliminate her candidacy before it gets going. They argue that she’s too conservative and far too cozy with the fossil fuel industry and corporate agribusiness. “There will be a big fight on Heitkamp if Biden puts her name forward,” says Kari Hamerschlag, deputy director of the food and agriculture program at Friends of the Earth. Most of the nonprofits against Heitkamp are far out on the left flank of even the most-progressive food and ag circles. However, divisions about Heitkamp appear to run deeply. The National Farmers Union, not a member of this coalition, is facing its own questions about whether to get behind the former North Dakota Senator. ************************************************************************************ Senate Unanimously Passes Grain Standards Reauthorization Senate Ag Committee Chair Pat Roberts of Kansas and Ranking Member Debbie Stabenow of Michigan say the Senate has unanimously passed the bipartisan U.S. Grain Standards Reauthorization Act of 2020. The act regulates marketing standards for grains and oilseeds and extends the inspection authority through September of 2025. “The Senate has approved the Grain Standards Reauthorization Act, which will allow America to continue fostering a healthy domestic grain market and positive relationships with our trading partners,” says Roberts. Stabenow says as farmers face unprecedented uncertainty and trade instability, it’s vital to maintain the integrity of the grain inspection system. “The bipartisan bill protects the interests of American farmers and ensures our credibility as a reliable producer of high-quality crops,” she says. The bill would include customers and applicants for inspection or weighing services in the list of people that must be notified in writing when a state agency intends to temporarily discontinue official inspection or weighing service. The bill still needs approval in the House and will also require that the USDA conduct a thorough review of the agency’s official geographic areas. ********************************************************************************************** Dairy Safety-Net Enrollment Ends on December 11 The USDA reminds dairy producers that the deadline to enroll in the Dairy Margin Coverage program for the calendar year 2021 is quickly approaching on December 11. The USDA’s Farm Service Agency opened DMC signup back in October to help producers manage economic risk brought on by milk price and feed cost disparities. “2020 has been a very challenging year for agricultural producers, and we don’t yet know what next year will bring,” says FSA Administrator Richard Fordyce. “Dairy producers should definitely consider coverage for 2021 as even the slightest drop in the margin can trigger payments.” The DMC program, first created by the 2018 Farm Bill, offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a specific dollar amount selected by the producer. To enroll, producers must certify with FSA that the operation is commercially marketing milk, sign all the required forms, and pay the $100 administration fee unless the farm qualifies for a waiver. Producers can select the $4.00 catastrophic level of coverage with no premium fee. They can also choose to buy-up coverage where the premium is based on margin triggers between $4.50 and $9.50 on five to 95 percent of their established production history. ********************************************************************************************** New Partnership Highlights Versatility of Corn as a Feedstock The National Corn Growers Association announced a new partnership with the publication called “Chemical & Engineering News.” The goal is to highlight the many uses for corn, including the opportunities in plant-based packaging, chemicals, and nutraceuticals (Noo-trah-SOO-tih-cals). The NCGA’s Market Development Action Team is funding the effort. “This is a way for us to enter into a conversation with an audience we don’t engage with every day,” says Market Development Action Team Chair Dan Wesely. “This is one of the many efforts we have in the new-uses space. Being able to share corn’s story, that we are an abundant, affordable, sustainably grown, and versatile crop with this audience is important to future corn demand.” CE&N subscribers will get a chance to test their knowledge of corn production and its uses by taking a quiz. Questions will range from “How much corn does the U.S. produce each year?” to “Which organic acid produced from corn is used in shampoos, conditioners, cosmetics, and pharmaceuticals?” An infographic will showcase how corn is utilized in several ingredients in items such as packaging and dietary supplements. Chemical & Engineering News is a weekly print and digital publication put out by the American Chemical Society since 1923. ********************************************************************************************** CommonGround Celebrates 10 Years of Building Trust CommonGround is a group of women farmers who plant seeds of trust through conversations with consumers about the food they grow. Those women are celebrating ten years of service and impact for agriculture. The farmers of CommonGround serve as a resource to connect with families about food and farming. The organization’s farmers volunteer their time to share personal experiences, as well as science and research, to help consumers sort through the myths and misinformation surrounding food. What first began as a handful of volunteers with a shared goal has flourished, growing into a grassroots movement with more than 200 volunteers in 20 states. “I’m proud to be part of something so authentic in this crazy world,” says Lauren Biegler, a CommonGround farmer-volunteer from Minnesota. “All of the women in the program have such genuine love and pride for their families, farms, and the products that come off their farms.” CommonGround was developed by the National Corn Growers Association, in collaboration with various state corn and soy associations. Though ten years have gone by, the mission remains the same; break the barriers between farmers and consumers through direct conversations. To learn more, people can go to www.findourcommonground.com.
| Rural Advocate News | Wednesday November 18, 2020 |
Washington Insider: Toxic Struggle Coming Over Trade The New York Times reported this week that “in addition to a deadly pandemic and a weakened economy, the next president will inherit a toxic relationship with the world's second-largest economy, China." President Trump has placed tariffs on hundreds of billions of dollars of products from China, imposed sanctions on Chinese companies and restricted Chinese businesses from buying American technology — a multiyear onslaught aimed at forcing Beijing to change its trade practices as punishment for its authoritarian ways. The coming hard choices for the U.S. will include whether to maintain tariffs on about $360 billion worth of Chinese imports, which have raised costs for American businesses and consumers, or whether to relax those levies in exchange for concessions on economic issues or other fronts, like climate change. The choices will be challenging, the Times says, and critics are demanding smarter approaches that combine working with the Chinese on some issues like global warming and the pandemic, competing with them on technological leadership and confronting them on still other issues like military expansionism, human rights violations--or unfair trade. In a speech on Monday, Biden promised significant investments for American industry, including $300 billion in technologies that he said would create three million “good-paying” jobs. “We're going to invest in American workers and make them more competitive,” Biden said and then added that he would ensure that labor unions and environment groups were “at the table” in any trade negotiations. And he promises to push for the United States, rather than China, to set the world's trading rules, along with other democracies. Even if Biden departs from the current punishing approach, his administration will need leverage over China to accomplish its own policy goals and will face pressure from lawmakers in both parties who view China as a national security threat and have introduced legislation aimed at penalizing Beijing for its human rights abuses and economic practices. Biden has given few details about his plans for U.S.-China relations, but the new administration will face pressure from both parties not to revert to the approach that he and many of his predecessors had earlier embraced in trying to transform China's economic practices by bringing it into the global economy, the Times says. Like many Democrats and Republicans Biden argued for decades that integrating China into the global trading system would force it to play by international rules. In 2000, he voted to grant China permanent normal trading relations which paved the way for China's entry into the WTO and deeper global economic ties. In 2016, Trump won the presidency in part by rejecting that approach, arguing that the United States needed to isolate, not integrate, Beijing. Now, Biden acknowledges that China exploited the international system and he is calling for a more aggressive approach. Congress is also relatively unified on a tough stance on China. Hundreds of China-related bills are circulating, including several bipartisan efforts that echo Biden's emphasis on competing with China by investing in advanced American industries. One area of focus is the trade deal that the administration signed with China in January. While it has largely kept commitments to open up its markets to American companies and administration officials have continued to defend the pact, Beijing has fallen far behind schedule in its promise to buy an additional $200 billion of goods and services by the end of next year. Now, the Times expects that the administration will leave the deal intact, said Chris Rogers, a global trade and logistics analyst at Panjiva. But he wouldn't rule out “a scorched-earth policy where China is declared to be in violation of its Phase 1 trade deal commitments and a return to tariff escalation,” the report said. “We are worried that the administration is going to do some rash things that don't make sense,” said Rufus Yerxa, the president of the National Foreign Trade Council, which represents major multinational companies. “Given the history of President Trump's use of executive authority, we're taking nothing for granted in these next few months.” Biden's appointments for trade and foreign policy posts will help reveal his approach toward China, the Times says. Similar to Biden himself, many of his closest advisers have a moderate track record on trade and China, believing they can work with Chinese leaders on some issues even as they challenge them on others. But several of his national security advisers are more skeptical. No matter the trade policy path, business groups, economists and others are hoping for a coherent strategy that does not result in the type of economic brinkmanship the current administration appeared to thrive on. “The administration never did lay out a coherent, comprehensive, engaged trade strategy,” said Thea M. Lee, an economist and the president of the Economic Policy Institute. “It was much more scattershot: Throw up a tariff here, do a deal with China, disparate elements that didn't seem to talk to each other.” “But there are a lot of tools in that toolbox, and I would like to see the Biden administration be thoughtful and strategic about how to use them,” Lee said. So, we will see. The definition and implementation of the promised new policies, especially, but not solely with China, will be a tough challenge, and many of those fights likely will appear early in the new administration. They certainly should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday November 18, 2020 |
GAO Report: USDA Needs To Do More On Verifying Farm Program Payments A Government Accountability Office (GAO) report on USDA farm program payments shows that while USDA has improved its compliance reviews on eligibility for farm program payments, more oversight is still needed. Sen. Chuck Grassley, R-Iowa, long backing tightening farm program payment rules to make sure those dollars go only to producers that have “dirt under their nails,” requested the review and said it shows that there needs to be more done on that front. “Congress must fix this broken system in the next Farm Bill,” Grassley said. “I look forward to continuing to work with the USDA as they address much-needed changes to FSA office operations to implement these recommendations.” GAO said that the issues are focused mostly on state FSA offices, pointing out that there no systematic monitoring of performance compliance reviews. The report said that 19 of the top 20 farms that received payments in 2016 and 2017 are in the south. GAO made an additional five recommendations for USDA and FSA to implement so that only those actively engaged in farming are utilizing the payments and the program is used for its original purpose. This will keep the matter as an issue as the next farm bill is developed, with that process expected to get underway in 2021.
| Rural Advocate News | Wednesday November 18, 2020 |
CFAP 2 Payouts Over $10 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) now total $10.08 billion as of November 15 with 616,103 applications approved. Acreage-based payments account for the largest share at $4.99 billion, followed by livestock ($2.74 billion), sales commodities ($1.34 billion), dairy ($980.8 million) and eggs/broilers ($28.3 million). Payments for corn ($2.76 billion), cattle ($2.21 billion), sales commodities ($1.27 billion) and soybeans ($10.6 billion) are at $1 billion or more, followed by milk ($980.8 million), wheat ($550.0 million), hogs/pigs ($459.0 million) and upland cotton ($229.2 million). By state, Iowa still leads at $953 million, with Nebraska at $687.7 million), Minnesota at $665.5 million, Illinois at $637.8 million, California at $618.2 million, Kansas at $526.3 million, Texas at $482.3 million, South Dakota at $462.9 million, Wisconsin at $441.4 million and North Dakota rounding out the top 10 at $370.2 million. Signup for the effort continues through December 11 and USDA continues to solicit producer enrollments. Payments under the CFAP 1 effort stand at $10.42 billion with USDA seeking to wind that program down, calling on those producers who have not submitted requested forms to so by November 20.
| Rural Advocate News | Wednesday November 18, 2020 |
Wednesday Watch List Markets The U.S. Census Bureau issues its report on October housing starts at 7:30 a.m. CST, followed by the Energy Department's weekly energy inventories at 9:30 a.m. As usual, traders will pay attention to the latest weather forecasts and any trade news that develops. Weather Warm, dry and windy conditions are in store in the Plains through western Midwest Wednesday. This pattern favors the final stage of row crop harvest but is stressful in winter wheat areas. Red flag wildfire warnings cover much of the Plains. Eastern Midwest areas will be cooler but dry with improved harvest prospects. Rain and snow continue in the Northwest.
| Rural Advocate News | Tuesday November 17, 2020 |
Farmers Bracing for More Scrutiny Under Biden? Bloomberg says American agriculture is likely bracing for more scrutiny of its practices under a Joe Biden administration. While the race isn’t officially over yet, ag would potentially see more regulation of everything from environmental protections to workplace safety, a stark contrast from the anti-regulatory administration of Donald Trump. The key question will be how much pressure ag will face as Democrats are divided on how hard they might move forward on a more progressive agenda. One thing for sure is there will be a greater emphasis on food assistance for needy families under Biden. The first suggestion of where a new administration would fall on the regulatory spectrum is who they appoint to different positions. Both farmers and environmentalists will be looking closely for details on how Biden would carry out a campaign pledge to make American agriculture the first in the world to reach net-zero with emissions. Even as the Trump administration refuses to concede the race, the Biden team is moving ahead on cabinet choices, with the picks likely to come in the middle of December. Former Ag Secretary Tom Vilsack has been advising the Biden campaign on rural issues. ********************************************************************************************** China-Led Trade Pact is Signed The ink is officially dry on the Regional Comprehensive Economic Partnership, signed by China and 14 other nations over the weekend. The New York Times says the signing ceremony came about after eight years of talks leading up to one of the world’s largest regional free-trade agreements. While the pact is somewhat limited in scope, it still covers approximately 2.2 billion people. That’s larger than any previous regional free trade agreement and likely helps improve China’s image as the dominant economic power in Southeast Asia. It also comes about after a U.S. withdrawal from sweeping trade deals that appear to be reshaping global relationships. As other countries continue to sign trade deals, some trade experts say American importers may lose ground. “While the U.S. is currently focusing on domestic issues, including COVID-19 and rebuilding its economy, I’m not sure the rest of the world is going to wait until America gets its house in order,” says Jennifer Hillman, a senior fellow on the Council of Foreign Relations. “I think there are going to have to be some responsive actions to what China is doing.” ********************************************************************************************** Reigning in the Land Grab Law Interior Department Secretary David Bernhardt issued a recent secretarial order on the Land and Waters Conservation Fund. The Order prioritizes input from local governments and leaders, which will help stop unchecked land grabs by the federal government. It requires written support from local governments for any land or water acquisition. “The LWCF was created to be a discrete tool to strengthen recreational opportunities for local communities and improve public lands management,” says Kaitlynn Glover, NCBA Executive Director of Natural Resources and the PLC Executive Director. “States and local stakeholders know best what their communities need and should be directly involved in those decisions.” She says ranchers appreciate the secretary’s work to make certain LWCF cannot be used as a tool for rampant, unchecked acquisitions that would compromise the health of Western landscapes and federal agencies’ ability to manage the lands and waters already under their jurisdiction. The Great American Outdoors Act was signed into law back in August. It gave federal agencies free rein to spend hundreds of millions of dollars each year of LWCF funding for the sole purpose of acquiring new private land without any oversight from Congress. ************************************************************************************ USDA Says Farm Production Expenses Will Drop The USDA says farm sector production expenses, including those associated with operator dwellings, are forecast to decrease by $4.6 billion to $344.2 billion in 2020 in nominal terms, which means not adjusted for inflation. That’s a 1.3 percent drop from the previous year. These expenses represent the costs of all inputs used to produce farm commodities and strongly affect farm profitability. Although the overall production expenses are projected to drop, there are differences between the specific expenses. Specific expenses forecast to increase in 2020 account for approximately 69 percent of the total and are projected to collectively rise by $6 billion relative to 2019 before inflation adjustment. These include the two largest categories; feed purchases and cash labor. In contrast, expenses expected to decrease account for 31 percent of total expenses and are forecast to collectively decline by $10.6 billion between 2019 and 2020. More specifically, livestock and poultry purchases are expected to drop 7.5 percent, pesticides by 2.1 percent, and oil and fuel spending by 13.9 percent. Interest-rate costs are forecast to be at their lowest level since 2014, dropping by 27 percent from 2019 as a result of historically low interest rates. ********************************************************************************************** Newman Re-Elected as NPB President David Newman, a pork producer from Arkansas, was elected to serve a second term as president of the National Pork Board at the organization’s November meeting. The NPB’s 15 producer-directors represent America’s 60,000 pig farmers who pay into the Pork Checkoff, a program that funds research, promotion, and education efforts that benefit the industry. “Like everyone, U.S. pig farmers have faced significant challenges this year,” Newman says. “Supply chain disruptions caused by COVID-19 and the real threat of African Swine Fever have made this one of the most difficult years to be a pig farmer. But it also shows us how resilient and agile our industry and the Pork Checkoff are in the face of adversity.” Despite the numerous challenges that the pork industry has faced in recent months, Newman says he’s optimistic about the opportunities ahead. “I’m excited to be able to lead the Pork Checkoff for a second term as we implement key learnings from the past year, continue to build on retail sales growth for pork seen during the pandemic, and show consumers the value of the pork industry from farm to fork through our Real Pork master brand,” says Newman. He operates a farrow-to-finish operation in Arkansas that markets pork directly to consumers and foodservice operations. ********************************************************************************************** U.S. Water Use Dropping for Most Crops and Livestock Production The University of Illinois says climate change and a growing world population require efficient use of natural resources. The College of Agriculture, Consumer, and Environmental Sciences says water management strategies need to support worldwide changes in food consumption and dietary patterns. Agricultural production and food manufacturing account for a third of U.S. water usage, which fluctuates with weather patterns, but is also affected by shifts in production technology, supply-chain linkages, and domestic and foreign consumer demand. A comprehensive University of Illinois study looked at water withdrawals in U.S. agriculture and food production from 1995 to 2021. The main trend they saw was a decline in water use, driven by a combination of factors. The authors of the study say the industry’s use of water for irrigation decreased by 8.3 percent over that period. One trend they noted is greater demand for white meat than red meat at the nation’s grocery stores. Chicken production requires 3.5 times less water-per-pound than beef production, which means a change in demand helped livestock reduce its water use by 14 percent.
| Rural Advocate News | Tuesday November 17, 2020 |
Washington Insider: Household Finance Improves Bloomberg is reporting this week that eight months into the pandemic, American household finances are in “the best shape in decades.” The report calls the finding “seemingly incongruous” what with the widespread business lockdowns earlier in the year and the coinciding surge in unemployment—and that the same picture certainly doesn't apply to all families equally. But it “points to just how strong the U.S. economy was going into the virus outbreak and how powerful the combined monetary and fiscal responses were from the Federal Reserve, Congress and the administration.” Record-low mortgage rates, reflecting the ultra-easy Fed policy, have prompted a steady wave of refinancing and allowed homeowners to reduce monthly payments or tap equity. Americans are also holding more cash, helped in part by stimuli from the government, Bloomberg says. Households' debt service burdens have eased considerably, too, a complete departure from the 2007-2009 financial crisis that required years to mend. That in turn bodes well for consumer spending and its ability to power the economic recovery through a period marred by a violent spike in virus cases, Bloomberg said. “The consumer here in the U.S. is relatively stable and, honestly, relatively better off than we might have feared back in the height of the pandemic in the second quarter of 2020,” Marianne Lake, JPMorgan Chase & Co.'s chief executive officer for consumer lending, said at a recent virtual investor conference. “The consumer's willingness to carry on spending is a pretty positive sign for a broader economic recovery.” In addition, Bloomberg notes that a report today on retail sales likely will find another solid, yet more moderate, sales advance in October. And despite the surge in COVID-19 cases, economists project a 4% annualized rate of U.S. economic growth this quarter, unchanged from the October forecast – though down from the prior period's record gain, according to a Bloomberg survey. While the pandemic has financially been harder on working-class families than it has been for those more wealthy who have been stockpiling much of the cash, data shows that they too have more money in the bank now. That's important because they are much more likely to spend that money – and give the economy an added jolt – than are the wealthier, Bloomberg noted. Checkable deposits also had improved for several quarters leading up to the pandemic and even before the government actions to provide financial assistance for the unemployed. Ian Shepherdson, chief economist at Pantheon Macroeconomics, said it's possible economic growth estimates for coming quarters could be revised upward even more “because there's an awful lot of cash which is waiting to be spent.” However, the virus resurgence likely means “people can't spend until it's safe to go back out again,” he said. To be sure, another reason savings remain elevated is that people are uneasy about their jobs and the outlook, particularly in industries such as travel, food services and leisure, where business activity is more at risk. And, while cash buffers of those who benefited from fiscal stimulus are starting to weaken, their financial positions remain elevated compared with pre-pandemic levels, JPMorgan's Lake said. For its part, residential real estate has played a huge role in driving both the recovery and improvement in household finances. Cheaper borrowing costs have not only sparked a flurry of demand for homes, mortgage refinancing has strengthened. While cash-out refinancing only makes up a little more than a third of all activity, a larger share of rate-term refinancing means lower monthly mortgage payments. “It's highly likely that households have the ability to spend more, and probably are spending more, and continue to spend more, because they can refinance and their payments are low relative to their income,” said David Berson, chief economist at the insurance and financial services company Nationwide. “The consumer came into this crisis in a pretty strong position in terms of household balance sheets and household liquidity and debt service burdens,” JPMorgan's Lake said. So, we will see. The report is good news – and it likely will take some of the pressure from the current talks regarding additional stimulus. However, the virus still appears to be spreading out of control, a trend that certainly will continue to boost economic tensions as the government transition is debated – a process producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Tuesday November 17, 2020 |
Tougher US Actions on China Said in the Works President Donald Trump over the next 10 weeks is now expected to announce several measures to further crackdown on China over human rights abuses, according to a report from Axios, focusing on Xinjiang and Hong Kong in particular. No more actions are expected on Taiwan and no additional closures of Chinese consulates in the U.S. are expected to result, the report noted, with the focus being on trying to make it “politically untenable” for a Biden administration to change course on China policy. The key will be whether the expected actions will spook U.S. commodity markets relative to China's pledged purchases of a host of U.S. agricultural goods.
| Rural Advocate News | Tuesday November 17, 2020 |
RCEP Signed Covering 30% of World Trade The Regional Comprehensive Economic Partnership (RCEP) trade pact was signed on Sunday, a trade effort that includes China, Japan, South Korea, Australia, New Zealand and 10 Southeast Asian nations. The pact still needs to be ratified by national governments before going into effect. It will take some time for that ratification and even longer for tariff modifications under the pact to take effect. The agreement was initiated by the Association of Southeast Asian Nations (ASEAN) in 2012 and takes most of the existing agreements signed by the 10 ASEAN countries — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — and combines them into a single multilateral pact with Australia, China, Japan, New Zealand and South Korea. The 15 participating countries account for nearly 30% of both world population and global trade. The U.S. is not part of the accord. India also opted out of the deal, expressing concern that it would unleash a lot of cheap imports into their market and negatively impact India producers.
| Rural Advocate News | Tuesday November 17, 2020 |
Tuesday Watch List Markets Tuesday's reports start with U.S. retail sales for October at 7:30 a.m. CST, followed by a report on October industrial production at 8:15 a.m. Traders will check the latest weather forecasts as well as any export news that emerges. Weather Dry conditions will dominate all primary crop areas Tuesday. Precipitation will be confined to light snow in the eastern Great Lakes. Final stages of harvest are favored while soils continue to dry out, notably in the Southern Plains.
| Rural Advocate News | Monday November 16, 2020 |
KC Fed: Farm Financial Outlook is Improving The Kansas City Fed said last week that the outlook for agricultural credit conditions in its Tenth District improved in the third quarter, due in part to rising commodity prices and additional government aid to producers. After dropping sharply in the second quarter due to COVID-19 disruptions, prices for most ag commodities began to rebound during the summer. The Fed report says increasing demand supported additional increases in crop prices through the third quarter and into October, expanding profit opportunities for many producers going into the harvest season. As a result, credit conditions deteriorated at a significantly slower pace. The number of bankers reporting declines in farm income and loan repayment rates dropped from the prior quarter. About 55 percent of ag bankers in the district reported lower incomes than a year ago, compared with 75 percent in the second quarter of 2020. Recent developments are leading to more optimistic expectations through the end of the year. Following years of steady growth, demand for farm loans appeared to decrease. About 25 percent of bankers reported that loan demand was lower than last year, the highest number since 2013. Loan repayment challenges are expected to ease across most types of farm operations in the district through the next three months. ********************************************************************************************** U.S. Looking for Trade Action Against Fresh Produce Imports Fresh produce coming into the United States is getting increasing scrutiny from the Trump Administration. Imported strawberries are now on the list of imported items that the administration wants investigated for possibly harming U.S. fruit and vegetable growers. Strawberry imports, mainly from Mexico, represent about 16 percent of the U.S. market, valued at approximately $2.5 billion every year. Gro-Intelligence Dot Com says if the investigation proceeds, any potential trade action could result in higher strawberry prices in the U.S. market. Officials are also requesting a probe into the imports of fresh peppers, which is the second-largest vegetable import into America. U.S. imports of strawberries totaled 184 million tons last year, a fourfold jump since 2005. About 99 percent of the imports come from Mexico, where a weak peso has made exports much more competitive with domestic production. U.S. farmers, especially in the Southeastern states, say the low-priced imports are putting domestic growers at a significant disadvantage. A similar Section 201 investigation by the U.S. International Trade Commission was recently requested for blueberry imports into the U.S. ********************************************************************************************** Innovation Center for U.S. Dairy, EPA Sign MOU The dairy-checkoff funded Innovation Center announced it signed a Memorandum of Understanding with the Environmental Protection Agency. The center says the MOU will open doors for increased collaboration in areas of mutual interest and allow the agency to gain a deeper understanding and support for U.S. dairy farmers. It will also help the EPA understand the broader dairy community’s environmental sustainability efforts. The MOU formalizes a relationship that began in 2012 and officially announced during the fall meeting of the Dairy Sustainability Alliance. The MOU allows the EPA to participate as a member of the Alliance, which consists of more than 130 companies and organizations that collaborate on issues affecting the U.S. dairy industry. The Alliance also works to accelerate progress toward shared sustainability goals and contributes to the industry’s long-term viability. “The MOU is significant as it indicates a recognition of U.S. dairy’s leadership in environmental stewardship and brings greater support for creating a sustainable future that’s economically viable for U.S. dairy farmers and the dairy community,” says Barbara O’Brien, President of the Innovation Center for U.S. Dairy. “The MOU will explore mutually beneficial opportunities for dairy farms across the country to benefit from access to EPA resources.” ********************************************************************************************** Dairy Already Introducing Itself to New Leadership in Washington, D.C. Although it’s not been officially confirmed yet that Joe Biden is the new President, U.S. dairy is already working behind the scenes to make sure the industry remains top-of-mind for new officials in D.C. For example, the National Milk Producers Federation has already congratulated Joe Biden and reminded him that bipartisan solutions are the best solutions. The NMPF points out that a widely accepted policy is less likely to be tossed out the moment a different political party takes power. Michael Torrey, a long-time expert on farm legislation, says advocating at the federal level for dairy farmers will be crucial with new lawmakers set to join Congress and possibly a new president heading to the White House. “There are going to be a lot of new faces, there’s going to be a new philosophy, and going to be new leadership,” Torrey said to members of the Edge Dairy Farmers Cooperative. Dairy Report Dot Com says the challenge of helping lawmakers understand the complexity of issues in the dairy industry is growing. He points to the defeat of Collin Peterson as a potential challenge because the long-time Minnesota congressman understands dairy policy more than most do on either side of the political divide. ************************************************************************************ NCGA Submits Comments on Future Access to BT Technology The National Corn Growers Association submitted formal comments to the Environmental Protection Agency to ensure future access and continued success with the use of Bt technology. In September, the EPA published a proposal to update insect resistance management strategies for pests like corn earworm and fall armyworm. The agency went through a similar process several years ago for corn rootworm. “The proposal offered what the EPA is calling ‘complex mitigation strategies’ that would directly impact corn growers nationwide, not only in the south,” says Chad Wetzel, chair of the NCGA Production Technology Access Action Team. “EPA proposed phasing out certain Bt pyramids nationwide.” He says the NCGA doesn’t support that for multiple reasons, noting it would seriously limit grower seed selection and drastically increase the use of a select few Bt products, which would increase the risk of resistance development for those traits. The EPA also proposed an increase from five to ten percent for refuge in a bag product used across the Corn Belt. NCGA says it doesn’t support the idea because EPA didn’t provide any data or details on how this would impact resistance management. ********************************************************************************************** First Hemp Organization Officially Recognized by USDA Foreign Ag Service The National Industrial Hemp Council announced it received $200,000 in funds from the USDA’s Market Access Program. Those funds will support export market development for industrial hemp. “We are grateful for the USDA confidence and the recognition of NIHC as the industry leader in industrial hemp trade and marketing,” says Kevin Latner, Senior Vice President for Trade and Marketing. “Today’s announcement makes NIHC a trusted partner to USDA for hemp fiber, feed, food, and CBD companies looking to break down trade barriers in markets overseas.” Latner is the one responsible for implementing the market development program. NIHC programs will focus on Europe and China and include market research, trade policy, and trade facilitation. The global industrial hemp and products market was worth $11.1 billion in retail sales in 2019. With an annual growth rate of 52 percent, driven by continued strength in textiles, food and industrial uses, and hemp-derived CBD, the global market is forecast to be worth $89 billion by 2025.
| Rural Advocate News | Monday November 16, 2020 |
Washington Insider: Asia Pacific Nations Sign Trade Deal Bloomberg is reporting this week that several Asia Pacific nations including China, Japan and South Korea on Sunday signed the world's largest regional free trade agreement, encompassing nearly one-third of the world's population and gross domestic product. Top officials from 15 nations that also include Australia, New Zealand and the 10 members of the Association of Southeast Asian Nations signed the Regional Comprehensive Economic Partnership which was nearly a decade in the making. The deal was signed on the final day of the 37th ASEAN Summit hosted virtually by Vietnam. “The completion of negotiations is a strong message affirming ASEAN's role in supporting the multilateral trade system,” Vietnamese Prime Minister Nguyen Xuan Phuc said ahead of the virtual signing ceremony. The agreement will contribute to “developing supply chains that have been disrupted due to the pandemic as well as supporting economic recovery,” he said. A minimum of six ASEAN countries in addition to three non-ASEAN partners must ratify RCEP for it to come into force, Singapore's Minister of Trade and Industry Chan Chun Sing told reporters following the signing. Singapore plans to approve the deal “in the next few months,” he said. Supporters of the pact, which covers 2.2 billion people with a combined GDP of $26.2 trillion, said it will bolster pandemic-weakened economies by reducing tariffs, strengthening supply chains with common rules of origin, and codifying new e-commerce rules. Among the benefits of the agreement include the elimination of at least 92% of the tariffs on traded goods among participating countries, as well as stronger provisions to address non-tariff measures. Provisions also include “enhancements” in areas such as online consumer and personal information protection, transparency and paperless trading, according to Singapore's Ministry of Trade and Industry. It also includes simplified customs procedures while at least 65% of services sectors will be fully open with increased foreign shareholding limits. Negotiators pushed the deal across the finish line after India surprised participants late last year by abandoning the agreement. Prime Minister Narendra Modi said he pulled out over concerns about how RCEP would affect the livelihoods of Indians, particularly the most vulnerable. India, though, will be allowed to rejoin the trade pact. “The clause allowing India to join at a later date is symbolic and shows China's desire to build economic bridges with the region's third-largest economy,” said Shaun Roache, Asia Pacific chief economist at S&P Global Ratings. Whether RCEP changes regional dynamics in favor of China likely depends on the U.S. response, experts said. The agreement underscores how U.S. President Trump's 2017 decision to withdraw from a different Asia Pacific trade pact – the Trans-Pacific Partnership or TPP – diminished America's ability to offer a counterbalance to China's growing regional economic influence. That challenge is expected to shift to President-elect Joe Biden once he is officially named the winner of the Nov. 3 election. Still uncertain is how the Biden team will approach this and other potential trade deals and whether it will attempt to re-enter the 11-nation TPP. Nations participating in the new treaty see it hastening economic recovery from the global pandemic. For example, Australian farmers and businesses say they expect to benefit from “better export opportunities” under RCEP. There will be greater investment certainties for companies and gains for Australian providers within the financial services, education, health and engineering sectors, Bloomberg said. Australian Prime Minister Scott Morrison said, “With one in five Australian jobs reliant on trade, the RCEP agreement will be crucial as Australia and the region begin to rebuild from the COVIDâ??19 pandemic.” The trade agreement will help Indonesia recover from the pandemic and possibly increase its GDP by 0.05% from 2021 to 2032, Trade Minister Agus Suparmanto said at a briefing. Citing a private study, he added that RCEP could boost exports by as much as 11% and investment by as much as 22% five years after its ratification. Japan too is looking for the pact to be a catalyst for its post-coronavirus economy, trade minister Hiroshi Kajiyama told reporters. “Through the tariff removals, I believe there'll be a major impact on improving Japan's exports and making the region's supply chains more efficient,” he said. “I strongly believe we are building free and fair economic rules on data free flows and bans on demands for technology transfers, as well as the protection of intellectual property.” The agreement will make exports of participating countries more competitive and create an integrated market for China and regional nations, Singapore's Chan said. “Over the past years, there have been several ups and downs and it has certainly not been an easy journey,” he said. “At one point, the prospects of concluding the agreement were shaken by geopolitical and domestic preoccupations. We have all had to make difficult trade-offs to advance the negotiations.” So, we will see. The new Biden administration says that it will pursue stronger trade deals with China and likely with the Pacific region as well. How it will react to this new pact is among the uncertainties that will need to be defined and addressed in the weeks and months ahead—issues that should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Monday November 16, 2020 |
USDA Sets General CRP, CRP Grasslands Signup Efforts For 2021 A general Conservation Reserve Program (CRP) signup will be held from January 4-February 12 and a CRP Grasslands signup will run from March 15-April 23, USDA's Farm Service Agency announced Thursday. As of September, there were 21.9 million acres enrolled in CRP with contracts on 5.36 million acres expiring as of September 30. Via the last general CRP signup, contracts on 3.4 million acres were approved with an October 1 starting date. USDA data shows another 1.2 million acres were approved for CRP Grasslands enrollment with 425,777 acres enrolled via continuous CRP signup efforts during Fiscal Year 2020. USDA has not indicated what the CRP acreage total is as of October, but it would appear that around 21.6 million acres are enrolled in the program.
| Rural Advocate News | Monday November 16, 2020 |
California Groups Back Rep. Costa To Lead House Ag Panel More than 60 California farm and ag groups have joined the California Farm Bureau Federation in backing Rep. Jim Costa, D-Calif., in his bid to become Chairman of the House Ag Committee. The California Farm Bureau earlier this week declared their backing of Costa who is seeking the top spot on the panel in the wake of current House Ag Committee Chairman Collin Peterson, D-Minn., losing his bid for re-election to the House. Costa ranks third on the panel in terms of seniority, behind Rep. David Scott, D-Ga., who is also seeking the gavel. Scott has picked up the endorsement of Peterson, which many view as a key backing to lead the panel.
| Rural Advocate News | Monday November 16, 2020 |
Monday Watch List Markets Traders are apt to check South American weather forecasts early Monday and will pause at 8 a.m. CST to see if USDA has any new export sales to report. USDA's weekly report of export inspections is due out at 10 a.m. CST, followed by the National Oilseeds Processors Association's estimate of soybean crush in October later Monday morning. CFTC's weekly data of trader positions will be released Monday afternoon and USDA's Crop Progress report is due out at 3 p.m. CST. Weather A band of light snow is in store for portions of the northern Midwest Monday. Other primary crop areas will be dry with favorable conditions for the later stages of harvest. Warm and dry conditions in the Southern Plains will further extract soil moisture from winter wheat areas.
| Rural Advocate News | Friday November 13, 2020 |
Washington Insider: Trade Policy Outlook When President Donald Trump was elected in 2016 and took his “America First” campaign into government, many of the world's pundits declared the end of the western-led trade order and globalization. Four years on, there are still plenty of thinkers who see reasons for gloom. However, Bloomberg asserts that “the reality” is also that the trading system looks remarkably resilient,” albeit a little wounded.” What exactly that means remains to be seen. But Bloomberg reports several things being discussed by key advisers, including that “dealing with China and its economic rise will color everything,” said Wendy Cutler, a veteran trade warrior who now leads the Asia Society Policy Institute. In addition, the Biden team believes that “manufacturing isn't going away as an American obsession.” The trade-transition team named this week “is replete with people with a background in manufacturing or the labor movement.” Jason Miller, the head of the team, once looked after manufacturing policy from the National Economic Council during the Obama administration, at a time when it had set a goal of doubling U.S. manufacturing exports. The report also notes that the current administration and economic generals such as U.S. Trade Representative Robert Lighthizer have “scrambled the American politics of trade, opened the door to a new suite of tactics and tariffs and brought to the fore what in many cases have been long-standing and bipartisan U.S. grievances. “The system's resilience should not be the end to a comforting story; it should be the starting point of a badly needed effort to reinforce and update the international order and address the real threats to its long-term viability,” Jake Sullivan, one of Biden's closest policy advisers, wrote in a 2018 Foreign Affairs article. The new team also will focus on “the importance of bringing home critical supply chains” and pledges to “build a strong industrial base,” Bloomberg says. These are policies that fit with the president-elect's plan to make sure the U.S. approaches its relationships with everyone from China to allies in Europe from a position of domestic economic strength. However, rather than relying on new defensive trade barriers as President Trump has done, the new policies are expected to hinge on encouraging investment at home via tax incentives and government spending on infrastructure and alternative energy to boost demand. The underlying idea is that a stronger, more confident U.S. — rather than a belligerent one — can turn around the narrative that it's a declining superpower, Bloomberg said. The new team is emphasizing that perhaps the top trade issue it faces is what to do about relationships with China, including decisions on whether to retain or lift tariffs and national security-driven bans on companies such as Chinese-owned Huawei Technologies Co., as well as whether to build on the current administration's “phase-one” deal with Beijing. Among these decisions is the question of whether to go down the “seemingly unlikely” path of rejoining the Trans-Pacific Partnership, which doesn't include China. The TPP has long been seen by strategic thinkers in Washington as a way to strengthen the U.S. position in the Asia-Pacific and to help counter China's economic rise. President Trump abandoned the pact on his first full workday in office. Many Asian allies would love for the U.S. to come back. In addition, the new administration also must address a brewing trade war with Europe related to a long-standing dispute between Airbus SE and Boeing Co. over industrial subsidies and plans by France and other countries for new digital-service taxes aimed at American tech giants such as Alphabet Inc.'s Google and Facebook Inc. Attention will also turn toward negotiations with countries such as Kenya and a post-Brexit UK, though none of those appear close to a conclusion. Bloomberg also notes that President Trump and USTR Lighthizer have shown what's possible on Capitol Hill by prying at least parts of the Republican Party away from free-trade orthodoxy. For decades, Republicans carried trade agreements over the finish line allied with only a small number of moderate Democrats—alienating those in the Democratic Party who felt trade deals left too many U.S. workers behind. In the process of hammering out an updated trade deal with Canada and Mexico, Lighthizer won influential Democratic allies ranging from House Speaker Nancy Pelosi, D-Calif., to Senators Sherrod Brown, D-Ohio, and Ron Wyden, D-Ore., the top Democrat on the Senate Finance Committee. He also won over a decidedly pro-Biden labor movement. There are those who also see a lesson relearned on the pitfalls of protectionism, Bloomberg points out. Douglas Irwin, a Dartmouth College historian of U.S. trade policy, argues that future administrations are likely to pause before using tariffs again in the way the current administration has. “We had an experiment for four years about what it's like to use tariffs for all sorts of objectives, and I don't think it's going to be viewed as a success,” Irwin says. These questions include the uncertainty that will continue shaping investment and trade and which will remain even if the new president moves away from the use of tariffs. Add to that a pandemic that's caused many countries to look inward and the task rebuilding the global trade order “only grows,” and it indicates the coming rebuilding will require more than just physical repairs, Bloomberg says. So, we will see. Trade policy has long been a challenging area for U.S. producers who were highly skeptical of the current administration's “get tough” tariff policies aimed at important and growing ag markets — and it will continue to be an area that should be watched closely as efforts to implement proposed changes are considered, Washington Insider believes.
| Rural Advocate News | Friday November 13, 2020 |
WOTUS Rule Revisit Expected By Biden Administration Revisiting the Waters of the United States (WOTUS) rule is part of coming Biden administration regulatory agenda, according to an analysis by Hogan Lovells. The Obama administration had issued a revision to WOTUS in 2015, which was the subject of extensive litigation. The Trump administration issued a repeal and revision of the Obama era rule, which has also drawn litigation for removing groundwater, ephemeral and intermittent streams, and certain agricultural operations from federal oversight. “The Biden administration will likely repeal the Trump regulation, but may modify the 2015 approach to stave off litigation exposure or seek a bipartisan solution in Congress,” the report stated. Some have downplayed that expectation, but this is now expected to be one of the areas focused on by the Biden administration. But any such effort will closely monitored by agriculture and they will no doubt spring to action to fight the effort if it is viewed as trying to reinstate the Obama-era plan.
| Rural Advocate News | Friday November 13, 2020 |
American Trust in Farmers Remains Strong A majority of adults in the U.S. view farmers’ sustainability practices positively, and an overwhelming majority of them trust farmers. Those findings are the results of a new public opinion poll taken by the American Farm Bureau Federation. The poll found that 58 percent of the respondents are positive about the sustainability practices of America’s farmers, and that agreement comes from a majority of adults across different demographic groups. Almost nine in ten adults (88%) trust U.S. farmers, which is a four percent increase from Farm Bureau’s June polling. That likely comes from evidence that the public recognizes that the food supply chain challenges brought on by COVID-19 were not within the control of farmers and ranchers. The survey also looked into public attitudes about the environmental sustainability achievements of farmers and ranchers, as well as the future direction for advancing to climate-smart farming. Overall, the public agrees farmers shouldn’t have to bear the financial burden alone. More than eight in ten Americans were impressed to find out that the Environmental Protection Agency and USDA both have data showing that farmers have put 140 million acres of land into conservation programs. “Americans have a high level of trust in farmers, and they understand that we’re committed to protecting the soil, air, and water,” says Farm Bureau President Zippy Duvall. ********************************************************************************************** EU-UK Trade Deal Likely Will Miss the Deadline Trade negotiations between the European Union and the United Kingdom seem likely to miss the mid-November deadline for a new Brexit deal. Reuters reports that after Britain left the European Union in January, a status-quo transition period will expire at the end of the year. The talks on new trade rules that begin in 2021 haven’t yielded results yet. “By moving into next week, the timelines will start to get tight,” says Irish Foreign Trade Minister Simon Coveney. “There aren’t many days left in the year, and if we don’t get a deal next week, we may have some real problems.” Now that the stakes are running even higher, an EU diplomat tells Reuters that, “The deadlines are increasingly tight. But the EU cannot make the timetable take precedence over its priority interests.” If the two sides don’t agree, trade rifts will develop between the world’s biggest trading bloc of 450 million consumers and the sixth-biggest economy. That would only deepen the economic damage caused by the coronavirus in Europe during 2020. “it’s quite possible this could fall apart,” Coveney says, “but if you’re asking me to call it, I think we are more likely to get the deal than not.” ********************************************************************************************** U.S. Commercial Wheat Sales Ahead of Last Year’s Pace USDA estimates that the U.S. will export 26.5 million metric tons of wheat in the 2020-2021 marketing year, which is one percent ahead of the pace in 2019 if realized. However, four months into the marketing year, total U.S. wheat commercial sales are 12 percent ahead of last year’s pace at 16.8 million metric tons and 15 percent ahead of the five-year average. To date, sales of hard red winter wheat, hard red spring wheat, and soft and hard white wheat are significantly ahead of last year’s pace. Sales of soft red winter wheat and durum lag behind the pace set in the 2019-2020 marketing year. Successes in individual markets like China and Brazil brought on by policy changes and follow-on trade and technical service by the U.S. Wheat Associates are supporting overall sales. Competitive pricing for U.S. wheat earlier in the current marketing year helped to fuel a faster import pace, even by traditionally strong U.S. wheat customers like the Philippines and South Korea. Total hard red winter wheat sales are 12 percent ahead of last year at 6.12 MMT, helped out by export sales to Brazil that are almost two times greater than they were at the same time last year. Total HRS export sales are 15 percent higher than last year. ********************************************************************************************** Fudge Won’t Pursue House Ag Chair; Would Accept Ag Secretary Position Ohio Representative Marcia Fudge endorsed Georgia Democrat David Scott’s bid to chair the House Agriculture Committee, shooting down speculation that she wanted that position. However, Cleveland Dot Com says she would be honored to serve as the Secretary of Agriculture in Joe Biden’s administration. Fudge frequently appears on a list of potential ag secretaries along with prospects like former North Dakota Senator Heidi Heitkamp, current Democrats Chellie Pingree of Maine, and Cheri Bustos of Illinois, as well as the state ag secretaries in California and Delaware. Fudge decided to back Scott for the Ag Committee’s top spot because he’s second in seniority behind the outgoing chair, Collin Peterson of Minnesota, who lost his re-election bid. Fudge is fourth in seniority on the Ag Committee and currently chairs the Nutrition, Oversight, and Department Affairs subcommittee. She’s also a member of the Congressional Black Caucus, as is Scott. Committee assignments and chairmanships in Congress get reshuffled after every election to replace departing members and accommodate new ones. Because Democrats will remain in control of the House of Representatives, Democrats will continue to chair all the committees. ************************************************************************************ CFAP Program Deadline is a Month Away The USDA’s Farm Service Agency is reminding farmers and ranchers that the deadline to apply for the Coronavirus Food Assistance Program 2 is December 11. The program provides direct relief to producers who continue to face market disruptions and associated costs due to COVID-19. “Producers have one more month to get their applications in for this important relief program,” says Richard Fordyce, Farm Service Agency Administrator. “Applying is simple and our staff is available to assist every step of the way.” CFAP 2 will provide up to $14 billion to eligible producers of certain row crops, livestock, dairy, specialty crops, aquaculture, and more. All of the eligible commodities, payment rates, and calculations can be found at www.farmers.gov/cfap. CFAP 2 is a separate program from the first iteration of the program and interested producers must complete a new application to be eligible for payment under CFAP 2. Customers seeking one-on-one support with the CFAP 2 application process can call 877-508-8364 to speak directly with a USDA employee that’s ready to offer general assistance.
| Rural Advocate News | Thursday November 12, 2020 |
Farm Tractor Sales Stay Positive in the U.S. and Canada Overall farm tractor unit sales continued to grow across North America in October despite a small pause in the larger unit sales in Canada. The latest data from the Association of Equipment Manufacturers says that total farm tractor sales in the U.S. rose 18 percent in October compared to 2019, while self-propelled combine sales in the U.S. grew almost 15 percent. Four-wheel-drive unit sales in the U.S. grew for the third straight month in October, up almost 23 percent to 635 units, putting year-to-date segment sales in the black for the first time this year at one percent higher. Sales of 100-plus horsepower equipment grew 9.7 percent during October, finally bringing the bigger units just into positive territory at .2 percent higher year-to-date. Total year-to-date farm tractors out the door are up 15 percent in 2020, while combine sales are now up 5.5 percent on the year. “We’re glad to see the aggregate North American tractor and combine sales stay above the five-year trend line,” says Curt Blades, Senior Vice President of Ag Services at AEM. “These latest numbers, combined with the recent bump in commodity prices, point to the potential for a strong finish to equipment sales in 2020.” ********************************************************************************************** Farm Equipment Dealers Forecast Growth in 2021 The recent Ag Equipment Intelligence/Farm Equipment 2021 Dealer Business Outlook and Trends survey shows some good news. Dealers not only beat last year’s estimates for profitability in 2020, but they’re now predicting greater revenue growth in 2021 than they did for this year. Farm Equipment magazine says when they examined the results of the survey, it clearly showed that more dealers are shifting away from a negative outlook on new equipment revenue. Over 42 percent of the dealers indicated that they see their new equipment revenue increasing by at least two percent in 2021, slightly more than the 41 percent in 2019 who forecasted increased new equipment revenue for 2020. Dealers forecasting an increase of eight percent or more in the next year came in at 8.7 percent of the respondents. That’s still more than double the 3.4 percent who forecast the same amount of increase in 2020. Those forecasting a two-to-seven percent increase dropped from just over 38 percent in last year’s survey to 33.7 percent this year. The most notable change comes from those forecasting little to no change in new equipment revenue, which came in at 46 percent of the respondents in this year’s survey. That surpasses the levels in both 2018 and 2019. ********************************************************************************************** Peterson Endorses Scott for House Ag Chairman Current House Ag Committee Chair Collin Peterson has made a recommendation for his successor. He’s endorsed Georgia Democrat David Scott as the next chairman. In a letter to Scott, Peterson wrote that he’s a supporter of the seniority system. Peterson also says he was happy to follow Kika (KEE-kah) de la Garza of Texas, who was the first Hispanic Chair of the committee. “It will be another important milestone to have the first African-American chair of the committee,” Peterson says in the letter. Scott is second in seniority on the committee after Peterson, who lost in his re-election race. In the meantime, House Democrats will begin the process of choosing committee chairs for the 117th Congress next week, including the House Agriculture Committee’s top spot. However, the Hagstrom Report says the new chairs won’t get confirmed until early January, according to the Rules of the Democratic Caucus and congressional staff. Scott and California Democrat Jim Costa have both said they will run for the job. While Scott is the second-most tenured member of the committee, Costa is right behind him as the third longest-serving member. House Majority Leader Steny Hoyer says that both parties will begin their leadership election process next week, while newly elected members take part in orientation. ********************************************************************************************** European Union puts Tariffs on U.S. Goods, Including Ag Products The European Union said earlier this week it will impose tariffs on up to four billion dollars’ worth of U.S. goods and services, including some agricultural imports. The move comes out of a dispute over U.S. assistance for Boeing, which is a bitter rival to Europe’s Airbus. News Tribune Dot Com says European trade ministers agreed on the move a few weeks after international arbitrators gave the EU the go-ahead for implementing the tariffs. The World Trade Organization ruled that some of the U.S. support for Boeing was illegal and said the EU could make up for that with a limited amount of duties on U.S. trade. The tariffs are officially in effect on Tuesday. The EU Commission’s Executive Vice President says, “Regrettably, despite our best efforts and due to the lack of progress from the U.S. side, we can confirm that the European Union will exercise our rights and impose the countermeasures.” It was a year ago that the WTO ruled similarly for the United States, allowing it to impose duties on EU goods worth up to $7.5 billion because of European support for Airbus. The EU Trade Commission is calling on the U.S. to agree that both sides will drop their countermeasures immediately so that they can put the issue behind them. ************************************************************************************ USDA Announces Updated Conservation Practice Standards The USDA’s Natural Resources Conservation Service has published a new list of updates to its National Conservation Practice Standards. The revisions include 58 standards that have been updated or revised since August. The 2018 Farm Bill required NRCS to review all 169 of its national conservation practices to seek opportunities to increase flexibility and incorporate new technologies. “NRCS is committed to efficiently and effectively implementing the Farm Bill and delivering on our promise to America’s farmers, ranchers, and forest landowners,” says Acting NRCS Chief Kevin Norton. “These practices are the building blocks of conservation, and they are science-based and site-specific. We took a hard look at our existing practices on the books, looking for opportunities to improve flexibility and integrate technology.” The National Conservation Practice Standards provide guidelines for planning, designing, installing, operating, and maintaining conservation practices. The 58 revised standards cover a wide range of conservation practices, including irrigation water management, heavy use area protection, and compositing facilities. NRCS is also adding two conservation practices dealing with wastewater treatment and wildlife habitat planning. More information on the National Conservation Practice Standards is available at www.nrcs.usda.gov or your local NRCS office. ********************************************************************************************** Nebraska Farmer Wins #RootedInAg Contest Hannah Borg of Wakefield, Nebraska, is the winner of Syngenta’s 2020 #RootedInAg Contest grand prize winner. The 22-year-old was chosen from a large pool of applicants and had to beat two other finalists to win the honor. The annual competition from Syngenta invites growers and other ag industry professionals across the nation to describe in their submission entry the person who most nourished their agricultural roots. In her video entry, Borg pays tribute to the matriarch of their sixth-generation family farm – her 86-year-old grandmother, Lois Borg. “Grandma is the perfect mix of grace and grit,” Hannah says. “I’ve always admired how she lives her life and her role in our family. She always knows what’s happening on the farm and never turns down the opportunity to ride along on any kind of trip.” Borg says her grandmother passed down many stories over the years and that Lois inspires her every day. The 2020 contest saw the largest number of submissions in its seven-year history. Pam Caraway, Syngenta’s marketing communications lead, says that made it their most difficult contest to rank. “Thanks to everybody who shared their stories,” she said. “Each submission was a delight to read or watch.”
| Rural Advocate News | Thursday November 12, 2020 |
Washington Insider: 2020 Lame Duck Policy Fights Begin There is growing political tension in Washington on many fronts this week as the results of the election gradually sorted out—and new policies considered and debated. With regard to efforts to fight impacts of the coronavirus, Bloomberg is reporting that the U.S. Senate's top Republican and Democrat are continuing to battle “over the size of fiscal stimulus needed to support the economy,” and that the dispute is dimming any hopes for an immediate package as lawmakers reconvene following the election. Majority Leader Mitch McConnell, R-Ky., argues that Congress should pass a “limited” stimulus bill by year-end, in the wake of positive data on a slide in unemployment and after encouraging news on a COVID-19 vaccine. Democratic leader Chuck Schumer, D-N.Y., countered that Republicans “have proposed totally inadequate solutions” on COVID-19 relief. In addition, news from Pfizer Inc. that its experimental vaccine might be 90% effective introduced a fresh dynamic into the outlook for stimulus – and spurred a rally in U.S. equities on Monday. While hailing the development, president-elect Joe Biden warned that the U.S. still faces a “dark winter” with the coronavirus continuing to spread. “That (virus) battle still takes time – it's an eternity to wait until February, let alone the time it will take to distribute a vaccine fully,” said Diane Swonk, chief economist for Grant Thornton LLP. Delays in passing another stimulus risk damaging the economy's capacity to grow for years to come as more people slip into long-term unemployment, small businesses collapse and families postpone or give up on education, she said. For the moment, the American economic recovery has continued even with the expiration of fiscal support, Bloomberg said. The jobless rate fell by a percentage point, to 6.9% in October, data showed Friday. “It turns out the news is a whole lot better” lately, McConnell said on the Senate floor. “I hope our Democratic colleagues will finally put aside their all-or-nothing obstruction and let the targeted pandemic relief – targeted relief is what we need – let it move forward.” McConnell said that the Senate should pass a relief bill in the post-election congressional session, which began Monday and is slated to end in mid-December. “To be clear, our work is not finished. Too many Americans are still suffering economically,” he said. Senate Republicans have supported a $500 billion virus package, without $1,200 stimulus checks for individuals or aid to states and local governments. However, Schumer called on Republicans to pursue a “bipartisan solution” rather than the stunts of recent months. House and Senate Democrats continue to push for a $2.4 trillion measure. House Speaker Nancy Pelosi, D-Calif., said Friday that a smaller bill “doesn't appeal to me at all.” “That isn't something we should be looking at,” she said. The U.S. Chamber of Commerce on Monday called on Congress to complete a package this year as the economy has yet to recoup losses that are “fallout” from COVID-19. The U.S. still has more than 11 million workers unemployed, it said. “We have not yet beaten the coronavirus or achieved the economic recovery we all desire. Our leaders have wasted five months already. They can't waste another three,” chamber vice president Neil Bradley said in a statement. One vehicle for at least some COVID-19 assistance is a spending bill needed to avoid the federal government shutting down on Dec. 11, when current funding runs out. Pelosi said Friday that rather than a short-term stopgap measure she favored an omnibus measure to complete the appropriations process for the fiscal year through next September. Extended unemployment benefits and pandemic jobless benefits for gig workers are set to expire at the end of the year. With airlines and small businesses under mounting pressure, it will be hard for Congress to do nothing, said Alec Phillips, chief U.S. political economist for Goldman Sachs Group Inc. Phillips argued that it's “reasonably likely” Congress will pass additional stimulus in negotiations before the Dec. 11 expiration of federal funding. Senators' views on the outlook differed, Bloomberg said. Appropriations Committee Chair Richard Shelby, R-Ala., said about wrapping COVID-19 relief into spending bills: “There's been talk about that, but we haven't seen that. It might not be a bad idea if we can agree on stimulus.” At the same time, Senator Roy Blunt, a Missouri Republican, said getting a stimulus deal in the lame duck session will be “hard.” “Both sides are saying they want one but both sides are saying they only want the one they want,” he said. So, we will see. Right now, the outcome of the elections is largely settled, although the timing and other details of the transfer remain in dispute and may continue to be for some time. These are important fights and should be watched closely by producers and others as they intensify, Washington Insider believes.
| Rural Advocate News | Thursday November 12, 2020 |
Biden Ag Transition Team The Biden transition team for USDA will be led by Robert Bonnie, who was a senior adviser to USDA Secretary Tom Vilsack during President Obama's first term and was undersecretary for Natural Resources and Environment at USDA for Obama's second term. Before joining USDA, Bonnie was vice president for land conservation at the Environmental Defense Fund, focused on incentives to reward farmers, ranchers and forest owners for stewardship activities on private lands. The list also includes several volunteers such as Jonathan Coppess of the University of Illinois who was also Farm Service Agency administrator during the Obama administration. Others include Nicholas Anthis, University of California; Sanah Baig, The Good Food Institute; Brooke Barron, Office of the Speaker, Maine State Legislature; Kumar Chandran, FoodCorps; Andrea Delgado, UFW Foundation; Debra Eschmeyer, Arizona State University; Meryl Harrell, Southern Appalachian Wilderness Stewards; LaQuita Honeysucker, The United Food and Commercial Workers International Union; John Padalino, Bandera Electric Cooperative; Gregory Parham, USDA (retired); Lisa Pino, State of New York, Department of Health; Amy Pitelka, Barker Pitelka PLLC; Jeffrey Prieto, Los Angeles Community College District; Audrey Rowe, self-employed; and Corey Then, Moneta Group. Some on the transition teams can end up serving in roles in cabinet agencies under the new administration.
| Rural Advocate News | Thursday November 12, 2020 |
USDA Ups Forecast of China Corn Imports USDA on Tuesday increased its China's corn import estimate, to 13 million metric tons, from 7 million metric tons previously. The level, however, is still below other predictions out there, including the USDA ag attache office at 22 mmt. USDA's World Board said, “For China, while the National Development and Reform Commission has not made any public statements indicating additional corn import quota has been allocated, shipment data for exporting countries through early November indicates they will exceed their tariff rate quota level of 7.2 (mmt).” USDA's Foreign Agricultural Service (FAS) later on Tuesday noted, “China's imports of coarse grains for 2020/21 are forecast higher this month, mirroring the level seen in 2014-15 when imports spiked due to strong prices in the domestic market. The rise for 2020/21 is supported by strong recovery in the swine sector, which has been driving feed demand higher. Corn prices in the domestic market have rallied since February, and in October, the national price averaged around $362 per ton, the highest since August 2015.” FAS also noted forecast rise in corn imports by China is “partly based on China Customs Statistics and U.S. Grain Inspections data through early November, which indicate that imports will far exceed the tariff-rate quota (TRQ) level of 7.2 mmt in calendar year 2020. There have been no public statements that would indicate that additional quota has been allocated by the National Development Reform Commission, the authority governing the TRQs.”
| Rural Advocate News | Thursday November 12, 2020 |
Thursday Watch List Markets Thursday morning reports include weekly U.S. jobless claims, the October consumer price index and an update of the U.S. Drought Monitor, all due out at 7:30 a.m. CST. USDA's weekly export sales report is moved to Friday, due to Veterans Day. At 10 a.m., the U.S. Energy Department will release its weekly report of energy inventories, including ethanol production. The U.S. Treasury will report on the federal budget at 1 p.m. CST. Weather Dry conditions are in store for all primary crop areas Thursday. This combination favors the final stage of harvest along with offering favorable livestock and transportation conditions.
| Rural Advocate News | Wednesday November 11, 2020 |
Latest WASDE Report Shows Lower 2020 Corn and Soybean Production The latest World Ag Supply and Demand Estimates Report shows lower U.S. corn and soybean production in 2020. Corn production is forecast at 14.5 billion bushels, down 215 million from the previous forecasting, and includes a reduction in yield to 175.8 bushels per acre. With supply dropping and usage increasing, corn ending stocks in 2020-2021 will drop 465 million bushels to 1.7 billion, which would be the lowest on-hand since 2013-2014. The season-average corn price is up 40 cents to $4 a bushel. Soybean production is forecast at 4.17 billion bushels, a 98 million bushel drop on lower yields. Because of lower production, soybean ending stocks are projected at 190 million bushels, 100 million lower than last month. That would be the lowest level in the past seven years if the projection is realized. The U.S. season-average soybean price for 2020-2021 is forecast at $10.40 a bushel, up 40 cents from the previous month. The 2020-2021 wheat outlook predicts stable supplies, higher domestic use, unchanged exports, and reduced ending stocks. The projected 2020-2021 ending stocks are reduced by six million bushels, coming in at 877 million, which is 15 percent lower than last year. The season-average farm price for wheat is unchanged at $4.70 a bushel. ********************************************************************************************** Hoeven Highlights Ag Appropriations Bill as Process Begins Senate Agriculture Appropriations Subcommittee Chair John Hoeven, a North Dakota Republican, says the Senate version of the fiscal year 2021 Ag appropriations Bill fully funds farm loan programs and supports rural innovation. It will also bolster future agricultural research. Hoeven tells the Hagstrom Report that, “As Chair of the Senate Agriculture Appropriations Subcommittee, we’ve worked to put together a strong agriculture funding bill that provides our farmers and ranchers with the support they need during these challenging times.” Among the many provisions in the bill, the legislation will maintain support for crop insurance and other farm bill programs. It will also increase funding for farm direct, guaranteed, and emergency loans to meet the expected demand. Senate Appropriations Committee Ranking Member Richard Shelby says he was disappointed that Republicans chose to cancel committee markups for the fiscal year 2021 bills and that the bills weren’t considered by the full Senate. “That eliminated the chance for members to offer amendments,” Leahy says. Senate Majority Leader Mitch McConnell says he intends to pass all appropriations bills before December 11, even though the Senate hasn’t passed a single appropriations bill yet. ********************************************************************************************** Colorado Corn Groups Go Their Separate Ways The Colorado Corn Administrative Committee made an unexpected announcement that the Colorado Corn Growers Association’s Executive Officer Team has decided to end the partnership between the two organizations. The split is effective immediately. A CCAC news release says they had hopes of renewing the partnership to continue moving Colorado Corn forward together, but the CCGA Executive Officer Team had “different intentions.” The Colorado Corn Administrative Committee was established thirty years ago to manage a one-penny-per-bushel assessment collected by the first handlers of sales of corn in the state. The committee invests the checkoff dollars on things like research, market development, as well as the outreach and education efforts on behalf of the state’s corn producers. The administrative committee says it is “committed to continuing to manage Colorado’s corn checkoff dollars and will continue to invest in the same projects it always has to benefit corn producers across Colorado. We, the CCAC Executive Committee, along with the entire CCAC Board of Directors and staff, will continue to serve all corn producers in the state of Colorado now and in the future.” ********************************************************************************************** NPB Launches New Tool for Protection Against Foreign Animal Disease Fallout The National Pork Board launched a new tool called AgView. It’s a brand-new technology solution to help the U.S. pork industry respond faster than ever before possible in the event of a foreign animal disease outbreak. The web-based tool will help producers easily share their farm’s Foreign Animal Disease status updates and pig movement data with state animal health officials. The opt-in, no-fee technology is funded by the Pork Checkoff, and it will allow for contact-tracing of infected animals to help rapidly contain or regionalize a potential foreign animal disease outbreak. While any disease outbreak on even a single farm would be devastating, the potential collective losses are staggering. An Iowa State University study says an outbreak of African Swine Fever would cost the pork industry $50 billion over 10 years. “When pork producers adopt AgView, they are not only helping to protect their farms, but also the entire industry,” says Pork Board CEO Bill Even. “COVID-19 taught us the best way to recover from a significant supply chain disruption, which a foreign animal disease outbreak would be, is through real-time information, collaboration, and a common data set to inform decision making.” For more information, producers can go to www.pork.org/agview. ************************************************************************************ McDonald’s Enters the Plant-Based Burger Market McDonald’s is entering the meatless burger battle. The fast-food giant says it’s developed a new plant-based offering called the McPlant. Tests of the burger will happen in some markets around the world in 2021. It may not be McDonald’s only foray into meatless options, either. “McPlant Is crafted exclusively for McDonald’s, by McDonald’s,” says Ian Borden, International President. “In the future, McPlant could extend across a line of plant-based products, including burgers, chicken substitutes, and breakfast sandwiches.” USA Today says McDonald’s is trailing many of its competitors in launching a plant-based burger in America. Burger King launched the Impossible Whopper using a plant-based patty from food startup company Impossible Foods. Other chains like Carl’s Jr. and Del Taco have also added plant-based menu items. “There are other burgers out there, but the McPlant delivers our iconic taste in a sink-your-teeth-in kind of sandwich,” McDonald’s says in a blog post. “It’s made with a juicy, plant-based patty and served on a warm sesame seed bun with all the classic toppings.” Borden says some markets will test the burger next year. The company didn’t not say whether the vegan-friendly burger will arrive in the U.S., nor give a potential timeline on the possibility. *****************************************t***************************************************** Fields-of-Corn Photo Shoot Deadline is Approaching Time is running out to submit your photos in the Fields-of-Corn Photo Contest. It’s the seventh year the National Corn Growers Association has put on the photo contest, with the upcoming deadline to submit entries on November 30. “We added two new categories this year, which are Livestock and Farm Pets,” says NCGA Graphic Communications Manager Beth Musgrove. “In the past, the contest has received many submissions of livestock, and since the animal ag industry is the largest customer of corn, it made sense to have that as a category.” She says because farm pets are a vital part of every operation, it was important to include them too. The single, most popular photo with the most Facebook “likes” will win a $500 prize. First, second and third-place finishers in each of the eight categories will get $300, $200, and $100, respectively. As in previous years, judges will select a single Grand Prize winner to get the $500 prize. Fields-of-Corn.com was first launched in 2014 to help tell the story of farming field corn in America. Since its start, NCGA has collected more than 2,000 photos across ten categories and awarded more than one hundred cash prizes.
| Rural Advocate News | Wednesday November 11, 2020 |
Washington Insider: EU to Impose New Tariffs on US Products The New York Times – and others – are reporting this week that the European Union said Monday that it would begin imposing sweeping tariffs on around $4 billion worth of American aircraft, food, drinks and other products beginning Tuesday. The action was authorized by the World Trade Organization last month in retaliation for “years of illegal subsidies given to Boeing.” The decision, which stems from a 16-year-old dispute, comes after the U.S. administration last year decided to impose tariffs on as much as $7.5 billion in European exports annually in retaliation for illegal subsidies given to the European airplane maker Airbus, Boeing's main rival. European officials, however, say they are hoping for a settlement between the two countries that would end to the tit-for-tat tariffs once and for all, perhaps even before President Donald Trump leaves office on Jan. 20 to make way for president-elect Joe Biden, according to a European Union official. The European tariffs include a 15 percent tax on large civilian aircraft and 25 percent on products including chocolate, frozen orange juice, tomato ketchup, rum and vodka, video game consoles and exercise equipment. Last year, the United States imposed tariffs on European planes, wine, cheese and other items. It remains to be seen if the European tariffs will encourage the United States to negotiate — or if they further inflame a trans-Atlantic trade spat where the Trump administration has vowed not to bend. Last month, Trump threatened retaliation if the European Union went ahead with its levies. “If they strike back, then we'll strike back harder than they'll strike. They don't want to do it,” Mr. Trump told reporters. In a statement Monday afternoon, Robert Lighthizer, the U.S. Trade Representative, said the U.S. “is disappointed” by the European decision. “The alleged subsidy to Boeing was repealed seven months ago,” Lighthizer said, referring to a Washington State tax break that was rescinded last spring. “The EU has long proclaimed its commitment to following WTO rules, but today's announcement shows they do so only when convenient to them.” Boeing and Airbus have taken steps to remove subsidies and fiscal support that had been deemed illegal by the WTO, opening the door to both sides entering into a negotiated settlement quickly, the Times said. Boeing said that it was “disappointing and surprising” that the European Union had decided to impose the tariffs, saying that the burden would eventually fall on Europe-based workers, suppliers and customers as well. “Instead of escalating this any further, we hope that Airbus and the EU will take meaningful action to resolve this trade dispute,” the statement said. At a media briefing in Brussels, Valdis Dombrovskis, executive vice president of the European Commission, called on the United States to come to the table and urged both sides to “drop existing countermeasures with immediate effect so we can quickly put this issue behind us.” Removing the tariffs “would represent a strong win-win for both sides,” he said, and Peter Altmaier, Germany's federal minister for economic affairs, added that Europe was “ready at any time to talk to the existing or new U.S. administration and withdraw” the tariffs. Still, the Times concludes that any discussions, should they take place, may not be easy. Both sides say they want to avoid inflaming a trade war, but a stumbling point is a standing demand by the Trump administration that Europe repay previous subsidies received by Airbus, the European official said. The WTO rulings require only that companies halt current illegal financial support – not repay previous subsidies. And it was not immediately clear whether the Trump administration would be interested in negotiating a settlement before Biden takes office. In a strongly worded statement last month, Lighthizer argued that the European Union had no lawful basis to impose the tariffs and that any move by Europe to do so would “force a U.S. response,” potentially signaling that the United States could impose more tariffs in an attempt to compel the European Union to bend. He added that the United States was determined to find a resolution to the dispute, but that it was still waiting for the European Union to provide a response to a previous U.S. proposal. Chris Swonger, the president of the Distilled Spirits Council of the United States, said the tariffs would be a “major blow to the U.S. spirits industry,” which is struggling because of the coronavirus pandemic. The European Union already imposed levies on American whiskey in 2018 as retaliation for Mr. Trump's tariffs on foreign steel and aluminum. Jim Mulhern, president and CEO of the National Milk Producers Federation, said Europe has often used unjustified trade tactics to limit competition from U.S. agriculture, including dairy. Mulhern delved into the "egregious" tactic of geographical indicators that Europe uses to restrict U.S. cheeses. “As the U.S. works to hold Europe accountable to its WTO obligations, U.S. retaliatory tariffs against EU dairy products continue to play a key role in bringing Europe to the negotiating table and compelling them to fulfill their trade commitments," Mulhern said. "The EU's restrictive trade policies that have resulted in a one-way flow of agriculture trade, and in particular dairy trade, to Europe is something that both the current and future Administrations need to keep in mind. In fact, the trade deficit between the EU and U.S. continues to widen as the EU uses unjustified trade tactics to erode U.S. market access and limit fair competition." The United States and Europe have been arguing for more than a decade about the subsidies and other kinds of special financing that the European Union has given Airbus and that the United States has given Boeing. Both sides have argued that the support amounted to illegal financial aid that allowed each plane maker to sell its products at unfairly low prices around the world, stifling competition and sales. So, we will see. Observers suggest that the new U.S. administration will look more actively to new international markets, but that such a shift will take time to define and impose. In the meantime, the transition itself appears to be increasingly difficult and slow-moving. Clearly, the shifts involved are likely to be highly important to producers and should be watched closely as they proceed, Washington Insider believes.
| Rural Advocate News | Wednesday November 11, 2020 |
RFS, SRE Decisions Still Pending EPA's initial proposed levels for the Renewable Volume Obligations (RVOs) under the Renewable Fuel Standard (RFS) landed at the Office of Management and Budget (OMB) in mid-May and they are still showing as being under review. EPA Administrator Andrew Wheeler had signaled the proposed levels were being revised in the wake of the COVID-19 situation. That discussion is still ongoing, Wheeler told AgriTalk November 2. “The problem is trying to figure out what the markets are going to do,” Wheeler said, including what the Department of Energy projects on driving miles. EPA and DOE are looking at this year's data, he noted, pointing out that with COVID it is difficult to determine where levels should be as the agency wants to set “realistic numbers,” Wheeler said, noting most of the focus is on advanced biofuel levels. “That's an active conversation between us and the Department of Energy, but we're looking at all government data, trying to figure out what the right numbers are.” He largely deflected a question on the situation for 2022, the last year covered by the current RFS authority, stating, “We're trying to make sure we get the 2021 [RFS levels] set in time.” But Wheeler pointed out relative to 2022 that they have not really started working on that yet but did note that actions by California to go with all-electric vehicles are issues that have to be considered ahead. The reference to getting the 2021 RFS levels set in time is relative to the statutory deadline of finalizing the levels by November 30. That has been a focal point by the administration of meeting that deadline in past years. As for the small refinery exemptions (SREs) that have been a hot-button issue, Wheeler signaled DOE has not yet sent back their recommendations on the 17 remaining gap-year requests and EPA cannot make decisions on those. Plus, the Supreme Court has been asked to assess the 10th Circuit Court decision and Wheeler signaled he did not want to make decisions only to have the court order a different decision.
| Rural Advocate News | Wednesday November 11, 2020 |
Rep. Peterson Puts Support Behind Davis to Head Ag Panel House Ag Committee Chairman Collin Peterson, D-Minn., defeated in his bid for another term in office, has thrown his support behind Rep. David Scott, D-Ga., to be the next leader of the panel. Noting he firmly believes in the seniority system for choosing the leaders of committees, Peterson said in a letter to Davis, “You have remained a permanent member of the Ag Committee since coming to Congress, where you have worked tirelessly to protect our nutrition program safety net, fought for our 1890 Institutions, and other HBCUs, ensuring opportunities and assistance for minority students who want to get involved in agriculture-related fields, and make sure that there is an adequate safety net for our specialty crop, commodity crop and livestock producers.” While noting that the two “haven't always agreed on every issue,” Peterson said they have been able to work together “to find a path forward on those issues over the years.” Peterson said he followed Rep. Kika de la Garza, D-Texas, the first Hispanic panel leader and “it will be another important milestone to have the first African-American Chair.” Rep. Jim Costa, D-Calif., is also seeking support of Democratic members of the panel to become the Chair.
| Rural Advocate News | Wednesday November 11, 2020 |
Wednesday Watch List Markets Wednesday is Veterans Day and U.S. futures markets are open, but U.S. government offices will be closed and there are no official reports on the docket. The latest weather forecasts will be watched and traders will likely still be influenced by Tuesday's new lower-than-expected corn and soybean estimates from USDA. Weather Dry conditions will cover most of the central U.S. Wednesday, with periods of snow in the northwestern Plains and rain in the Southeast. Temperatures will have a wide range from cold north to very warm southeast.
| Rural Advocate News | Tuesday November 10, 2020 |
Ag Groups Respond to Presidential Election Results Farm groups congratulate President-elect Joe Biden on his called victory while seeking to shape the roadmap for the future. American Farm Bureau Federation President Zippy Duvall says, "President-elect Biden will be presented with opportunities to improve the lives of rural Americans and this nation's farmers and ranchers." For agriculture, AFBF says the priorities include expanding trade and market access, rural broadband, addressing the farm labor shortage and strengthening the farm bill. National Farmers Union President Rob Larew says, “The last four years haven’t been too kind to family farmers and ranchers.” Larew adds, “We stand ready to work with his administration to ensure that its policies and programs adequately represent the interests of family farmers and rural communities.” In congratulating the incoming administration, Growth Energy says biofuels are the most affordable and effective solution available now to take climate action, adding “the new administration must harness those environmental and economic benefits by strengthening the Renewable Fuel Standard.” ************************************************************************************ Climate Change a Priority for Biden-Harris Administration The Biden-Harris administration will focus on climate change. On the incoming administration’s transition website, www.buildbackbetter.com, climate change is listed as one of four priorities. The website states, "we have the opportunity to build a more resilient, sustainable economy — one that will put the United States on an irreversible path to achieve net-zero emissions, economy-wide, by no later than 2050.” Specific to agriculture, the administration plans to create jobs in climate-smart agriculture, resilience and conservation. President-elect Biden's climate plan also calls for the U.S. to reenter the Paris Climate Agreement, which seeks to limit global warming to no more than two degrees Celsius. The plan also includes rebuilding infrastructure, including broadband, electric vehicles, zero-emissions transit, and a move to clean, American made electricity. Additionally, the plan calls for upgrading buildings and homes to be more energy-efficient, and ensuring that environmental justice is a key consideration for the future. Other listed priorities include COVID-19 recovery, economic recovery and racial equity. ************************************************************************************ American Farmland Trust Shares Transition Recommendations American Farmland Trust has outlined five policy recommendations to ensure the nation’s agricultural land remains available to produce food and help fight climate change. The recommendations are focused on the Department of Agriculture under the upcoming Joe Biden administration. Broadly, the organization says the policies address farmland protection and viability, farmland access for the next generation of farmers and ranchers and regenerative agriculture to “harness agriculture’s ability to fight climate change and become more resilient to its impacts.” The recommendations include a National Cover Crop Initiative, establishing the Commission on Farm Transitions, and maximizing the potential of the Agricultural Conservation Easement Program's Agricultural Land Easements. Additionally, the recommendations call for the administration to strengthen the Farmland Protection Policy Act and create a debt for the Working Lands Initiative. Tim Fink, AFT policy director, says the recommendations are just a starting point. Fink adds, “We look forward to working with the Biden Administration and the new Congress to achieve lasting solutions.” ************************************************************************************ Lame-Duck Session Brings Hope of More COVID Relief for Agriculture With the election over and a lame-duck Congress getting to work this week, agriculture's attention turns to the potential of more COVID-19 relief. The Senate is back in session this week. The House will return next week. There is optimism that both chambers can reach an agreement and pass more coronavirus aid. Last week, Senate Majority Leader Mitch McConnel indicated the Senate would get to work on creating another coronavirus package. What the package may include and if agriculture relief will be part of the plan remains in question. However, the biggest priority for lawmakers will be funding the federal government. The current funding legislation ends December 11. Last week, McConnell stated that he and House Speaker Nancy Pelosi had agreed to work on a budget bill that would provide funding for the federal government through September 30, 2021, the end of the current fiscal year. Without action by December 11, the federal government will face a partial shutdown. ************************************************************************************ Pork Cutout Futures Now Available for Trading CME Group Pork Cutout futures and options are now live and available for trading. Announced earlier this fall, the Pork Cutout futures and options are designed to give the U.S. pork industry and export markets tailored risk-management tools on the cutout. The contracts are cash-settled to the CME Pork Cutout Index and complement CME Lean Hog futures and options. CME Group says arrangements between hog producers and packers or processors today are diverse and ever-evolving. Once based almost exclusively on the value of live hogs, many agreements now pay greater attention on prices further down the value chain. CME Group says hogs are increasingly bought and sold in the physical market based on a formula which uses the cutout. The Pork Cutout reflects the approximate value of a hog calculated using the prices paid for wholesale cuts of pork. The new contracts are quoted in U.S. cents per pound and have a contract size of 40,000 pounds. ************************************************************************************ Injuries and Illnesses in Poultry Processing Fall Below All Manufacturing On the job illnesses and injuries in the poultry processing sector has fallen below all manufacturing. This is the first time the poultry sector scored better than manufacturing since the Department of Labor’s Bureau of Labor Statistics began recording injuries and illnesses information in 1994. The total recordable poultry processing illness and injury rate for 2019 was 3.2 cases per 100 full-time workers annually, down from 3.5 in 2018. The poultry industry’s rate of 3.2 was below the rate of 5.1 for similar agricultural industries in terms of injuries per 100 full-time workers and lower than the rate of 4.0 for the entire food manufacturing sector and all of manufacturing at 3.3. Injury and illness rates within the poultry sector’s slaughter and processing workforce has fallen by 86 percent over the last 25 years and continues to decline. The Joint Industry Safety and Health Council, which included the National Chicken Council, stated the data, “acknowledges the excellent safety performance achievements the poultry industry has accomplished.
| Rural Advocate News | Tuesday November 10, 2020 |
Washington Insider: President Elect Presses Ahead as Trump Digs In President-elect Joe Biden is moving forward to begin the transition as President Donald Trump continues to fight against his losses. Biden is largely ignoring Trump's efforts to undermine his victory, Bloomberg reports. He is methodically moving forward moving to launch his transition and is working to identify potential appointees to White House staff jobs. He “seemed to acknowledge the sharp partisan divide in pledging to work for those who didn't vote for him, but continues to say he expects a good working relationship with Republicans in Congress,” Bloomberg said. Biden has so far won 290 Electoral College votes, according to the Associated Press, “20 more than required to clinch the nomination.” However, none of that has stopped Trump, who continues to question the results and to fire off unfounded allegations of “widespread voting irregularities” and to alternate between claiming victory and saying he'd been robbed of a win. Trump's reaction has “frozen” Republican officeholders, Bloomberg says. Few have so far acknowledged the win, though they aren't fully embracing Trump's position. White House staff have faced a leadership vacuum, fueled by another apparent coronavirus outbreak with Trump's chief of staff, Mark Meadows, among those now battling the virus. Tellingly, the administrator of the General Services Administration, a Trump appointee, has so far not formally acknowledged Biden's win, as required under the 57-year-old Presidential Transition Act. Certification by the GSA administrator allows transition teams to fan across the federal government, access expanded office space, start tapping into $6 million of funding, and study detailed agency briefing books. Republican congressional leaders also “still seem wary” of crossing Trump and are holding back from acknowledging Biden's victory. Some prominent party members, including former President George W. Bush and Maryland Gov. Larry Hogan, have offered Biden congratulations since Saturday morning. Plaudits from world leaders have also piled up. Senate Majority Leader Mitch McConnell, R-Ky., said Monday that Trump is "100% within his right to look into allegations of irregularities and weigh his legal options." Other GOP leaders in Congress have either stayed silent or suggested that legal challenges to the outcome should be allowed to play out. None, however, have repeated Trump's unsubstantiated claims of widespread vote fraud. There are indications of limits to how long they'll wait. Sen. Roy Blunt, R-Mo., a member of McConnell's leadership team, said media projections of the winner are mostly meaningless, especially since so many forecasts for the election turned out to be wrong. Any determination of the result should await final counts by state officials and any challenges from the president's legal team, he said on Sunday. “That has to happen and then we move forward. It's time for the president's lawyers to present the facts and then it's time for those facts to speak for themselves.” Still, Bloomberg says that recognition is growing in Trump's inner circle that efforts to overturn Biden's victory will be futile. His closest aide, son-in-law and senior adviser Jared Kushner, has recommended the president ask the courts to ensure transparency around ongoing counts of ballots in several contested states, the people said. Nevertheless, Biden is launching transition efforts to shape the new administration, but is still weeks away from making cabinet nominations, his transition team said yesterday. Since the election was called Saturday, President-elect Biden has not yet started working through potential nominees in depth. The coming transition likely will follow a calendar similar to that of President Barack Obama's in 2008, when almost all nominations were announced in December. The one exception then, in the middle of a financial crisis, was Treasury Department nominee Tim Geithner, who was announced on Nov. 24. Biden also plans to reach out to Republicans and Democrats in Congress to discuss a new COVID relief package, with one ally calling on Trump to support one before Biden is sworn in on Jan. 20. The Senate now stands at 48-48 with counts still going on in North Carolina and Alaska — and Republican incumbents seem likely to win some of those seats. Democrats would need both Georgia seats to get to 50 in the Senate, which would give them control by virtue of Kamala Harris as vice president having the tie-breaking vote. So, we will see. The new administration faces almost endless problems and opposition — including fights beyond the continuing political pushbacks. These are important battles, in many cases, and ones that producers should watch closely as they proceed, Washington Insider believes.
| Rural Advocate News | Tuesday November 10, 2020 |
US Elections Factor Into Delay In Picking A WTO Chief The process of picking a new Director General to lead the World Trade Organization (WTO) is on hold, in part due to the COVID-19 pandemic but also the U.S. elections. WTO members were advised Friday via a document circulated from WTO General Council Chairman David Walker of New Zealand. "It has come to my attention that for reasons including the health situation and current events, delegations will not be in a position to take a formal decision on 9 November," Walker said in the statement. "I am therefore postponing this meeting until further notice during which period I will continue to undertake consultations with delegations." The delay was widely expected as the process has narrowed the choices down to two candidates — former Nigerian Finance Minister Ngozi Okonjo-Iweala and South Korean Trade Minister Yoo Myung-hee. While most have expressed support for Okonjo-Iweala, the U.S. backs Yoo, preventing a unanimous selection from being made.
| Rural Advocate News | Tuesday November 10, 2020 |
Report: China Likely To Seek To Renegotiate Phase One Agreement The election of former Vice President Joe Biden has already spawned talk in China that the country will seek to renegotiate the Phase One trade deal with the U.S., according to the South China Morning Post. The report labeled the deal as being viewed in China as “twisted” and that they see a Biden administration as being more “rational.” The report specifically pointed to the purchase commitments made by China in the trade deal — to purchase $200 billion in additional goods from the U.S. beyond a 2017 baseline level. "Biden will sooner or later launch a renegotiation of the trade deal, as the current deal is unrealistic. A renegotiation is also in line with China's wishes," Shi Yinhong, an advisor to China's State Council, said. But he also said the expectation is that a Biden administration would probably seek to extract more structural changes in any renegotiation effort. "The incoming Biden administration will probably take a tougher stance on Hong Kong, Taiwan, Xinjiang, South China Sea, other human rights issues, and the alleged Chinese intelligence activities in the U.S.” Other China sources quoted in the article echoed the sentiments that a Biden administration would most likely use renegotiation as a “bargaining chip” to extract more pledges from China on issues like intellectual property or further opening its financial markets. But issues on labor and human rights would be less likely to see much give on the part of China. U.S. trade contacts in the article indicated it was “wishful thinking” on the part of China relative to renegotiating the trade deal and that any such effort that is seen as making the deal easier on China would validate Trump campaign statements that Biden would be soft on China.
| Rural Advocate News | Tuesday November 10, 2020 |
Tuesday Watch List Markets The latest weather forecasts for South America are getting increased attention as we get farther into that new crop season. USDA's WASDE and Crop Production reports are Tuesday's main events, both due out at 11 a.m. CST. With soybean supplies getting tight, any export sales news will also be noticed. Weather Tuesday features rain, mixed precipitation and snow in the central Plains and western through northern Midwest. This moisture will disrupt the late stage of corn harvest. Eastern Midwest areas will be warm and dry with favorable harvest conditions. Southern Plains precipitation will be mainly light and focused in the southeastern Plains, bypassing the drought areas west. Tropical Storm Eta in the Gulf of Mexico is on track to bring heavy rain to the Southeast later this week.
| Rural Advocate News | Monday November 9, 2020 |
U.S. Soy Sales to China Slowing Down Sales of U.S. soy to China have slowed down from a previously rapid pace. Reuters says the slowdown is raising questions of whether China is just pausing its purchases, or if most of the intended volume has been purchased and Chinese buyers are waiting for Brazil’s new supply to become available. Surging soybean sales to China is helping the overall level of farm trade to the Asian nation set new records for this time of year, while at the same time bringing China closer to meeting the purchase requirements in the Phase One trade deal with the U.S. Net export sales of U.S. soybeans to China during the week ending on October 29 totaled 810,710 tons, which is the lowest total in the last 11 weeks of the current marketing year. That volume included 578,600 tons switched from unknown destinations. There hasn’t been a daily U.S. soybean sale explicitly to China since October 15, the longest streak since April of this year. U.S soybean prices have risen significantly over the last two months, which may be a limiting factor in further sales at the end of 2020. ********************************************************************************************** Georgia Representative Looking to Replace Collin Peterson as Ag Chair Georgia Democrat David Scott is the most senior member of the House Agriculture Committee after current Chair Collin Peterson. The Hagstrom Report says Scott is throwing his hat into the ring as someone who’d like to be the next Chair after Peterson, who recently lost his re-election bid to Michelle Fischbach. Scott is the chair of the House Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit. “I’m proud to announce that I am seeking the chairmanship of the U.S. House of Representatives Committee on Agriculture,” he says in a news release. “Today, our nation faces perhaps the most significant struggles any of us have seen in our lifetime. Across rural and urban communities and from young to old, the threats posed by global illness, hunger, financial insecurity, climate change, and natural disasters are significant.” He says Congress must address, through the Ag Committee, the insecurities plaguing our citizens and provide the means for a more fruitful existence. He says reaction to climate change must include “transitioning away from fossil fuels toward ethanol and biofuels,” and that the small and mid-sized farmers need help to deal with the trade wars and global pandemic. ********************************************************************************************** Soybean and cotton growers sue EPA over Dicamba Use Restrictions The American Soybean Association and the Plains Cotton Growers have filed a lawsuit against the Environmental Protection Agency registration of the herbicide dicamba. The product is used for “over-the-top” applications on soybean and cotton crops genetically engineered to withstand the herbicide. A Feedstuffs magazine report says the recent decision by the EPA gives growers five years of usage, beginning with the 2021 growing season. However, the lawsuit says some aspects of the registration decision, such as buffer requirements and application cutoffs, are “problematic for growers who depend on reasonable and consistent access to dicamba for use on dicamba-tolerant soybeans and cotton.” While registering dicamba, EPA imposed several application and use conditions on soybean and cotton growers. The lawsuit notes that “several registration conditions impose growing restrictions and disrupt growing seasons, which will diminish crop yields, cut productivity, and drive up the costs of operating. Some of those conditions are much more stringent than in past registrations.” The lawsuit challenges the conditions as going beyond EPA’s authority under the Federal Insecticide, Fungicide, and Rodenticide Act. The case seeks a remand of the EPA restrictions on dicamba applications as well as the spatial application buffers. ********************************************************************************************** September Pork Exports Remain on Record Pace; Beef Exports Head Lower September exports of U.S. pork increased by 10 percent year-over-year, keeping 2020 exports on a record pace. Those numbers come from the latest data released by USDA and compiled by the U.S. Meat Export Federation. Beef exports were fairly steady with last year in major Asian markets but trended lower overall. Pork exports totaled more than 222,400 metric tons in September, with the value increasing six percent to $563.2 million. Exports set a new record for Canada and increased year-over-year to Japan, Vietnam, the Philippines, Taiwan, Chile, and the Caribbean. Through the first three quarters of 2020, pork export pace was 16 percent higher than last year’s record pace in both volume and value. “While pork exports remain strong to China and Hong Kong, it’s vitally important that our export destinations remain diversified,” says USMEF CEO Dan Halstrom. September beef exports were down six percent from last year to 103,277 metric tons, valued at just over $600 million. Exports to South Korea and Taiwan remained strong, while exports set a new record in China. “USMEF is very encouraged by the recovery in Asia, and this was especially evident in the strong August and September exports of U.S. beef to Korea, Taiwan, and China,” Halstrom adds. ************************************************************************************ Washington Supreme Court Makes Farmworkers Eligible for Overtime Pay Late last week, a divided Washington state Supreme Court ruled that the state’s dairy workers will get overtime pay if they work more than 40 hours a week. The Associated Press says it’s possible that the decision could someday apply to the rest of the agriculture industry. For the past six decades, state laws have mirrored federal law in exempting farmworkers from the classes of employees entitled to overtime pay. However, the 5-4 court ruling found that unconstitutional. The majority says the Washington state Constitution grants workers in dangerous industries a fundamental right to health and safety protections, including overtime. The decision makes Washington the first state to give farmworkers overtime protections through the courts. California is adding in some overtime protections, as is New York, Maryland, and Minnesota. The ruling could eventually provide a template for extending farmworker overtime in other states. That statement comes from Charlotte Garden, a professor at the Seattle University School of Law, who worked on a friend-of-the-court brief in the case. “The law, in this case, is specific to Washington, but it could still inspire new litigation strategies both inside and outside of Washington,” she says in an instant message. *****************************************t***************************************************** CHS Fiscal Year 2020 Income Drops Significantly CHS, Incorporated, one of the nation’s leading agribusiness cooperatives, reported a net income of $422.4 million for the fiscal year that ended on August 31. It’s a substantial drop from their 2019 net income of $829.9 million. Among the key reasons for the decline, poor weather conditions negatively impacted their ag segment operations during the first half of the fiscal year 2020, resulting in lower crop yields and poor grain quality following a late harvest and lower crop nutrient sales in the fall of 2019. The company also had less advantageous market conditions in its refined fuels business, primarily because of COVID-19. However, strong supply chain performance in their propane business helped in handling crop drying and home heating needs. “Our focus remains on serving our owners, local cooperatives, as well as our customers around the world while keeping our employees safe and ensuring the company emerges stronger after the pandemic,” says Jay Debertin, President and CEO of CHS Inc. “Since March, we have been focused on taking care of those who depend on us, maintaining financial strength, and planning for the future.”
| Rural Advocate News | Monday November 9, 2020 |
Washington Insider: Job Growth Seen Slowing The Washington Post, and many others reported last week that the U.S. economy added 638,000 jobs in October. Still, the report was largely seen as “the latest sign that the economic recovery has slowed compared with earlier in the summer, amid rising coronavirus cases that continue to weigh on the recovery.” The unemployment rate fell to 6.9% from 7.9%, based on data gathered during the first half of the preceding month. Eleven million people remain unemployed, the survey found — about twice the number in February before the crisis. However, the jobs-added figure was the smallest monthly gain since May, when the economy began adding back some of the 22 million jobs lost early on in the pandemic. “The unemployment rate dropped more than expected, and on the back of an increase in the labor force and no increase in permanent layoffs,” said Daniel Zhao, a senior economist at Glassdoor, who called the report “positive” although he noted that the pandemic remains a major concern. The gains were driven by hard-hit industries such as leisure and hospitality, which added 271,000 jobs; restaurants, bars and other food service places, which added 192,000; retail, which added 104,000; and arts, entertainment and recreation, which added 44,000. But employment in these industries remains well below their levels from February. Leisure and hospitality is still short 3.5 million jobs; retail is down by about 500,000 jobs. Health care and social assistance, which added 79,000 jobs, is down 950,000 from February. Manufacturing gained 38,000 jobs but remains 621,000 lower than February. The gains were offset in part by the loss of 268,000 government jobs. The majority, 147,000, were temporary census workers whose employment ended. Kate Bahn, an economist at the Washington Center for Equitable Growth, said she was concerned that the gains were modest in industries that could be vulnerable as the pandemic results in more layoffs and restrictions. The snapshot of the country's economic health in October arrives at a portentous moment, in the midst of a national election and a renewed debate of future economic policies, the Post emphasized. More than 21 million people continue to draw unemployment benefits in what was often compared to the jobless crisis of the Great Depression during the height of the economic shutdown in the spring. Congress has yet to agree on a way to extend some of the aid programs and eviction protections that many economists credit with propping up the economy during the dire first months of the pandemic. An extra $600 in weekly jobless benefits that helped many stay on top of their bills expired at the end of July. The number of people who have been unemployed for six months or longer increased by more than 2 million to 3.6 million, the Post said. The racial and gender disparities in employment that have been exacerbated during the crisis continue to plague policymakers. While the unemployment rate for Whites is 6%, it is 10.8% for Blacks, 7.6% for Asians and 8.8% for Hispanics. There have been some positive signs in the economy, which has recovered two-thirds of the ground it lost during the first half of the year. Job postings, measured by sites such as Indeed and Glassdoor, have continued to rebound, although they remain well below pre-pandemic levels. Certain retail sectors have shown strength and growth, such as auto parts and dealers, building material and garden stores, and sporting goods and hobby stores. However, the gains in jobs could further dim the likelihood that Republicans would agree to a large aid package, Senate Majority Leader Mitch McConnell, R-Ky., said. He called the report an indication of a “dramatic comeback” in the economy, and he said he would push for a more limited stimulus because of it. Other data captures a deep stagnation afflicting the recovery. Homebase, which makes employee-scheduling software, said that the hours employees worked in October were virtually flat compared with September, the fourth straight month of near stagnation. States with cooler weather in the Northeast and Midwest saw steeper declines in the number of businesses open, it said. Data from the Ultimate Kronos Group, another scheduling-software company, had similar results, showing that shift work in the retail, food service and hospitality sectors stayed nearly flat in October. Federal Reserve Chair Jerome Powell noted Thursday that the economy had recovered more quickly than had been initially forecast, but he also warned about the threats the economy faced from the coronavirus, as well as decreased consumer spending as some households run through their savings in coming weeks and months. The labor-force participation rate rose slightly to 61.7%, up 0.3 percentage points — but it remains more than a percentage point and a half below its February level. The number of workers who are able to secure only part-time work rose by 383,000, to 6.7 million. So, we will see. As the “lame duck” session approaches, the policy debates will be as fierce as ever and likely will extend into the spring and beyond, Washington Insider believes.
| Rural Advocate News | Monday November 9, 2020 |
Cotton, Soybean Groups Challenging EPA Restrictions on Dicamba Soybean and cotton growers are challenging the EPA's recently announced restrictions for using the herbicide dicamba, claiming the new, more stringent conditions will disrupt growing seasons. The American Soybean Association and Plains Cotton Growers Inc. filed a complaint Wednesday in U.S. District Court for the District of Columbia opposing the EPA's October 27 decision to allow the continued use of dicamba on tolerant crops, but with additional controls. The groups said in court filings that the restrictions “will limit growers' ability to respond to weather, pestilence, and other acts of God that significantly reduced yields and increase operational costs.” They noted that spring rains, flooding, wind and hail “can force soybean and cotton growers into planting or replanting their crops as late as June.” EPA is restricting soybean growers from applying dicamba products after June 30 each year, while cotton growers face the same restriction after July 30 each year. They also took issue with the buffer requirements that EPA announced. The trade associations asked the court to remand those restrictions in the EPA's registrations for dicamba products, claiming the buffers and time restrictions are arbitrary, capricious, an abuse of discretion, and not otherwise in accordance with law.
| Rural Advocate News | Monday November 9, 2020 |
Speculation Rising On Potential USDA Chief In A Biden Administration The parlor game of who will take various posts in a potential Biden administration is in full swing in Washington with several names on the list of those who could head up USDA. Obvious potentials including defeated lawmakers such as House Ag Chairman Collin Peterson, D-Minn., and former Sen. Heidi Heitkamp, D-N.D., who served on the Senate Ag committee from 2013 to 2019 and was reportedly considered by Trump to head USDA under his administration. Other possibilities include former USDA officials Michael Scuse (now Delaware's Ag Secretary) and Krysta Harden (former deputy secretary and chief of staff to former USDA Secretary Tom Vilsack). Others on the mounting chatter list include current Rep. Marcia Fudge, D-Ohio, and Land O'Lakes CEO Beth Ford. Other names are likely to surface in coming days and could well include a candidate not on anyone's list.
| Rural Advocate News | Monday November 9, 2020 |
Monday Watch List Markets The second week of November will start with traders examining the latest weather forecasts, especially for South America as the new crop season advances. USDA's weekly report of grain export inspections is due out at 10 a.m. CST, followed by Crop Progress at 3 p.m. Traders will also be watching for any export news that might develop. Weather A strong cold front moving through the northern and central Plains will bring cold conditions, strong winds and periods of rain, snow and mixed precipitation to northern crop areas Monday. Ahead of the front, very warm conditions with strong south winds will extend from the Great Lakes to the southeastern Plains. Tropical Storm Eta in the southeastern Gulf of Mexico is set to become a new hurricane during Tuesday.
| Rural Advocate News | Friday November 6, 2020 |
Trump Administration Seeks Extension to Respond to Biofuel Petition The Trump Administration is requesting the U.S. Supreme Court extend the response deadline to a petition from oil refiners that the court review a prior court decision. The request would push their response deadline to December 14 from November 12, according to Reuters. The case relates to waivers issued to refiners under the Renewable Fuel Standard. Earlier this year, an appeals court ruled the Environmental Protection Agency waivers granted to small refineries after 2010 should only be approved as extensions. Farm and biofuel groups welcomed the ruling, and the EPA later tossed out several exemptions. Still, more than 50 waivers are pending action by the EPA, and EPA Administrator Andrew Wheeler said this week, any action should wait until after the Supreme Court petition is wrapped up. Oil refiners filed the petition in September. The EPA says it needs more time to provide a full government response to the petition. Biofuel groups say the delay provides further uncertainty of the matter. ************************************************************************************ Trade Deficit Shrinks for First Time in Three Months The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced the goods and services trade deficit was $63.9 billion in September, down $3.2 billion from $67.0 billion in August. This is the first time in three months the trade deficit has shrunk. September total exports were $176.4 billion, $4.4 billion more than August exports. September imports were $240.2 billion, $1.2 billion more than August imports. Exports of goods increased $3.7 billion to $122.8 billion in September. The export figures note that exports of foods, feeds, and beverages increased $1.6 billion, including a $1.4 billion increase in soybean exports. The deficit with China decreased $2.1 billion to $24.3 billion in September. U.S. farmers are enjoying the increased sales to China, with a bump in commodity markets this fall. The Department of Agriculture reports weekly corn sales were 16 percent higher than a week ago. Weekly soybean sales slipped but remained at the highest pace in two years. ************************************************************************************ University Policy Center Urges Return of COOL A recent publication by the University of Tennessee's Agriculture Policy Analysis Center urged the return of mandatory country of origin labeling for beef, pork, and bison. The center states that COOL could give consumers information they need to buy products that meet their individual buying preferences. The publication also claims the cost of providing this information would be negligible because the information already exists in the meat supply chain. The systems developed within the meat supply chain before the 2015 repeal of COOL for beef and pork still remain today but are not being used. However, COOL faces stiff opposition from meatpackers and importers. A pending ruling by the World Trade Organization authorizes Canada and Mexico to institute retaliatory tariffs if beef and pork were re-added to the COOL law. But, R-CALF USA CEO Bill Bullard argues that Congress can avoid retaliatory tariffs by passing a new law to reinstate COOL for beef rather than re-adding beef to the old law. ************************************************************************************ Canada Creates New Pork Promotion and Research Agency Canadian Agriculture officials Thursday announced the Canadian Pork Promotion and Research Agency. The agency will support Canada's pork sector's competitiveness and sustainability by enabling the development and implementation of promotional and research activities, much like the U.S. Pork Checkoff. The agency was first proposed in March of this year, but requested in July of 2015, according to the U.S. Department of Agriculture's Foreign Agricultural Service. The creation of a national levy system will fund the activities, at a rate of 75 cents, Canadian dollars, per-head. USDA says the proposed import levy is considered WTO compliant on the basis of national treatment obligations. Levies will also be collected on imported pork products, at a rate that is no more than the minimum levy paid by producers across Canada. Rick Bergmann, Chair of the Canadian Pork Council, says the agency “will result in improving the long-term growth and competitiveness of the sector.” ************************************************************************************ Missouri River Water Releases to Reach Winter Rates Late This Month Missouri River water releases from the Gavins Point dam will reach winter levels at the end of the month. The Army Corps of Engineers says reductions are scheduled to begin around November 22. Releases will be stepped down by approximately 3,000 cubic feet per second each day until reaching the winter release rate of 17,000, ending the 2020 navigation season. The move also signals a fresh start again for the 2021 spring season, with all flood control space available in the reservoir system. That’s another relief for farmers along the river, who in 2019 suffered from flooding, and a breakdown of levee systems and the navigation control system. The 2019 flooding started with the March bomb cyclone winter storm that devastated Nebraska agriculture. Now, most of the Missouri River basin is experiencing some form of drought. The drought and low river levels have hindered the transit of products along the river this year. ************************************************************************************ USDA Co-hosting Webinar on Livestock Risk Management The Department of Agriculture will co-host a webinar focused on livestock risk management. Along with the Extension Risk Management Education Program, USDA will host the webinar on November 12. The webinar is free to attend and will provide information on livestock markets, price risk, and risk management options. USDA’s Bill Northey says, “The information that will be presented here will be invaluable to livestock producers who have an interest in the various risk management tools available to them through USDA.” The webinar is scheduled for 2-3 p.m. Eastern on Thursday, November 12. Producers can register at farm.unl.edu/webinars. Meanwhile, on Tuesday, November 17, USDA will host the first in a series of four evening webinars from 7-9 p.m. Eastern. The Cattle and Carcass Training series is designed to assist producers, feeders, and others who want to better understand the reporting, delivery, and grading of feeder cattle, live cattle, and carcasses, particularly relating to CME live cattle futures. The webinars are free, but registration is required.
| Rural Advocate News | Friday November 6, 2020 |
Washington Insider: Old Political Hurdles on Infrastructure Remain Bloomberg is reporting this week that a renewed fight on infrastructure funding is likely this fall. Both presidential candidates made sweeping campaign promises to strengthen the nation's roads, bridges and other infrastructure, but the issue has long defied solution. As a result, Bloomberg says that the next president likely will hit the same speed bump that has plagued Washington for years: how to pay for it. Former Vice President Joe Biden, like President Donald Trump, didn't commit in his campaign platform to a concrete way to raise revenue for the ailing Highway Trust Fund, the federal government's central mechanism for paying for highways and transit. The fund is facing insolvency because it mainly relies on gasoline and diesel fuel taxes, which haven't increased since 1993. President Trump, despite vows to “rebuild our country” and two years of Republican control of both chambers of Congress, was unable to address the shortfall so far during his presidency. Even as Congress faced a deadline to reauthorize federal funding for highways, transit, rail, and safety programs earlier this year, lawmakers from both parties instead punted the problem to next September. “I've tried this before. We're not going to be able to raise the gas tax,” Biden, who voted to increase the gas tax in 1993, said at a forum on infrastructure in February. “There are an infinite number of ways to be able to fund this, thinking creatively,” said Chris Campbell, who helped shape the last major transportation law as Republican staff director of the Senate Finance Committee. Rail supporters are also hoping Biden, sometimes called “Amtrak Joe,” would deliver a long-sought victory on the $11 billion Gateway rail tunnel project under the Hudson River between New York City and New Jersey, which supporters say has languished under Trump. Lawmakers have traditionally opposed tinkering with taxes unrelated to transportation to pay for infrastructure, such as corporate or payroll levies, Campbell said. To pay for the last long-term transportation law, lawmakers used a slew of funding tools, such as requiring the Energy Department to sell crude oil from the country's emergency supply. “There are as many proposals as there are members of Congress” on the Transportation and Infrastructure Committee, ranking member Sam Graves said ahead of Election Day. Democrats will likely use a measure from House Transportation and Infrastructure Chairman Peter DeFazio, D-Ore., a $500 billion highway, transit, and rail measure from this Congress. The measure was already passed by the House and is expected to be the starting point for negotiations this fall — although that legislation lacks a specific proposal to fix the Highway Trust Fund. It would instead dodge the problem by transferring about $145 billion to the Highway Trust Fund from the general fund. Republicans, such as Graves, have long called for a transition to taxing the miles people drive, known as vehicle miles traveled, as opposed to gallons of gasoline used. A 2019 report from the Congressional Budget Office found that a vehicle miles traveled tax on trucks would alleviate at least some of the shortfall in the Highway Trust Fund. However, that revenue boost would come at a higher cost to the federal government than the administrative costs of collecting the current diesel fuel tax. DeFazio's bill would establish a national vehicle miles traveled fee pilot program that would include commercial and passenger vehicles. It wouldn't fully replace the gas tax. “We have a lot of people out on the road that simply aren't paying for the use of that road,” Graves said. There's also the question of how the election winner would spend infrastructure money. Biden's plan aligns with DeFazio's bill in that it melds climate priorities with transportation policy, though it doesn't offer many specifics on existing programs. Biden is expected to use the Department of Transportation or other agencies to accomplish the plan's goals. His proposal highlights spending for public transit, a component of transportation policy that Republicans have typically played down. President Trump hasn't released a concrete infrastructure proposal during his time as president, though he did endorse a bill approved by the Senate Environment and Public Works Committee, which included a climate change section for the first time in highway legislation. Transportation for America, a group run by former Obama Department of Transportation official Beth Osborne, has long argued that Congress must set goals about what should be achieved with any transportation program, as opposed to arguing about how much money should be spent. The group supports DeFazio's bill because it charts a path to updating policy. “Putting more money into existing programs doesn't work,” Osborne said in a phone interview before Election Day. So, we will see. The first priority of the next congress is likely to be to stimulate the economy — a fight many expect to be bloody given that the Congress still is likely to be deeply divided. However, infrastructure also is likely to be high on the list—and figuring out how to pay for those costly investments is expected to be just as difficult as it has in the past and to include a number of bitter fights that producers should watch closely, Washington Insider believes.
| Rural Advocate News | Friday November 6, 2020 |
FY 2020 US Ag Exports Beat Forecast, Imports Set A New Record Exports of U.S. agricultural products reached $135.9 billion in Fiscal Year (FY) 2020 with imports at $133.2 billion for a trade surplus of just $2.7 billion. USDA in August forecast FY 2020 ag exports at $135.0 billion against imports of what would have been a record $131.7 billion which would have resulted in a forecast surplus of $3.3 billion. The FY 2020 export mark is just above the $135.5 billion figure registered in FY 2019 but well short of the FY 2018 mark of $143.4 billion and even further below the FY 2014 record of $152.3 billion. What moved the export and import figures past forecast levels were September U.S. ag exports of $12.2 billion against imports of $11.0 billion for a monthly trade surplus that was at $1.3 billion. The monthly export total was the largest since November 2019 and imports were at their highest since June. U.S. agriculture registered a trade deficit six months during FY 2020, including a record of $1.13 billion in June. For FY 2021, USDA in August forecast exports to rise to $140.5 billion against imports forecast at $136 billion for a surplus of $4.5 billion.
| Rural Advocate News | Friday November 6, 2020 |
Scott, Costa Throw Hat Into the Ring For House Ag Panel Chair While ag interests are still reeling with the defeat of House Ag Committee Chairman Collin Peterson, D-Minn., in Tuesday's election, Washington appears focused on who will take over that spot on the committee. Many have talked of Rep. Marcy Fudge, D-Ohio, as a potential successor. Fudge chairs the Nutrition, Oversight, and Department Operations Subcommittee and has focused much of her attention on those programs as a member of the panel. But Rep. David Scott, D-Ga., chairman of the Commodity Exchanges, Energy, and Credit Subcommittee and number two in seniority on the Democratic side of the full committee, has thrown his hat into the ring to take over the top post. While touting farm roots in Georgia in a deal colleague letter announcing he was seeking the chairman's gavel, Scott also said the core focus of the panel includes food, nutrition and financial resources. His message to other lawmakers is that he would focus the panel on farm, food, nutrition and other issues. Noting he would be the first African American to chair the House Ag panel, Scott said if selected, he would have a “principled focus on addressing inequities in agriculture and advancing racial progress for all.” Also making a push for the chair is Rep. Jim Costa, D-Calif., who falls right behind Scott in seniority on the committee for Democrats. Costa chairs the Subcommittee on Livestock and Foreign Agriculture and has served on the committee since 2005. His district represents one of the major agricultural regions of California.
| Rural Advocate News | Friday November 6, 2020 |
Friday Watch List Markets Thursday morning gets back to business with USDA's weekly export sales report, U.S. jobless claims, a report on third-quarter U.S. productivity and an update of the U.S. Drought Monitor all due out at 7:30 a.m. CST. U.S. natural gas inventory is set for 9:30 a.m. The Federal Reserve will have a post-meeting announcement at 2 p.m. CST and no change in interest rates is expected. Weather Dry and unseasonably warm pattern across all crop areas continue Thursday. Harvest and fall field work will continue to progress. This pattern remains in place through the weekend.
| Rural Advocate News | Thursday November 5, 2020 |
House Ag Chair Defeated Agriculture lost decades of experience in the defeat of House Agriculture Committee Chairman Collin Peterson. The Minnesota Democrat lost Tuesday to the Republican Challenger Michelle Fischbach (Fish-bock), garnering 53 percent to Peterson’s 39 percent of votes in Minnesota’s District 7. In a statement, Peterson said, “We ran a strong and positive campaign, but with the President winning this district by 30 points again, and the millions in outside money that was spent to attack me, the partisan tilt of this district was just too much to overcome." Peterson has led Democrats on the committee for the last three farm bills. Based on seniority, Democratic Representative’s Jim Costa of California, David Scott of Georgia, or Marcia Fudge of Ohio, could become the next House Agriculture Committee Chair. Fischbach’s campaign has indicated she would seek a seat on the committee. Democrats retained control of the House but did lose a few seats, thinning the majority margin. ************************************************************************************ Marshall Wins Kansas Senate Race to Replace Roberts Roger Marshall won the Senate race in Kanas to replace Senate Agriculture Committee Chairman Pat Roberts. The Republican Marshall won the seat with 53 percent of the vote. Roberts has served Kansas since 1981, starting in the House of Representatives. Roberts has also served as both the Chairman of the House Agriculture Committee and the Senate Agriculture Committee. Marshall is a member of the House Ag Committee, serving on Commodity Exchanges, Energy and Credit, and the Livestock and Foreign Agriculture subcommittees. Marshall represented the large First District of Kansas since 2017. Republican Tracey Mann won the district seat with 71 percent of the vote. In his victory speech, Mann said, “I vow to be an advocate for agriculture.” With the retirement of Roberts and Republican Representative Mike Conaway of Texas, and the defeat of Democrat Collin Peterson, three of the top four agriculture positions in Congress will have new representation. ************************************************************************************ Trump Declaring an Early Victory Problematic for Trade Partners The overnight claim by President Donald Trump believing he ‘already won’ the election may pose a problem for U.S. North American trade partners. Votes were still being counted Wednesday with no definitive outcome, but Biden held a small advantage midday Wednesday. The cliff-hanger has the nation’s northern neighbor withholding comments on the outcome. A political expert told Canada’s national Globe and Mail Wednesday morning, “A big challenge for Canada now is that Trump wants to declare victory before all votes are counted, so will expect U.S. Allies to send him their congratulations." The expert points out that the problem is for those who don't offer early congratulations, Trump will "take this very personally and if he is elected, can be expected to be even more punitive on trade matters." That, of course, depends on the outcome of the U.S. election. Most Canadian agriculture leaders agree former Vice President Joe Biden would be better for trade relations between the two countries. ************************************************************************************ Senate Control, Ag Committee Makeup, May be Decided in January Control of the U.S. Senate may not be known until January and could further change the Senate Agriculture Committee's makeup because of a runoff vote in Georgia. The runoff results from Republican incumbent Kelly Loeffler being appointed earlier this year to take the seat of Republican Johnny Isakson (eye-zeck-son), who resigned at the end of 2019, citing health reasons. Republicans held a slight lead, 47-45, to control the Senate, but some races were still too close to call by midday Wednesday. Loeffler is a member of the Senate Agriculture Committee and is running to serve the remaining two years of Isakson's term. Loeffler will face Democrat Raphael Warnock, who received 31 percent of the special election vote Tuesday, while Loeffler received 26 percent. To win Tuesday, a candidate must have received 50 percent of the vote. Returning members up for reelection to the Senate Agriculture Committee Include Republicans Mitch McConnell, Joni Ernst and Cindy Hyde-Smith. Returning Democrats include Tina Smith and Richard Durbin, assuming they return to the committee next year. ************************************************************************************ Mary Kay Thatcher: Rural America Needs Bipartisan Representation A long-time leader in agriculture policy says rural America is going to need more Democrats in the future. Mary Kay Thatcher of Syngenta, who was a long-time policy expert at the American Farm Bureau Federation, says, "we don't have very many democrats in the rural areas." Only nine Democrats, prior to this election, held rural seats in the House. Thatcher made her comments to the Adams on Agriculture radio show Wednesday morning. She says, "We should be thankful we are not writing a farm bill this year." There will be new leadership in three of the top four Congressional positions for agriculture. With the defeat of House Agriculture Chairman Collin Peterson, Thatcher says of the new leadership, "They probably just can't be as effective right away." Thatcher says agriculture needs a bipartisan representation, adding, "we've always been bipartisan, we need to be bipartisan, and we need Democrats and Republicans both that are willing to go to leadership and say this is important." ************************************************************************************ NFU: Withdrawal from Paris Climate Agreement is "Shameful" Following a night of waiting for election results, the National Farmers Union calls the U.S. withdrawal from the Paris Climate Agreement “Shameful.” The United States formally exited the Paris Climate Agreement Wednesday, three-and-a-half years after President Donald Trump pledged to do so. National Farmers Union says 189 countries have ratified the historic agreement so far, which aims to keep “a global temperature rise this century well below two degrees Celsius above pre-industrial levels.” That leaves just eight countries – including the United States – as outliers. A strong advocate for climate action, NFU expressed support for the deal when it was finalized at the end of 2015. NFU President Rob Larew stated, “Climate change is a global crisis, and it requires a united, global effort to address.” Larew says the decision "not only undermines critical climate action and makes our planet more vulnerable to increasingly frequent and severe weather extremes, but it also comes at great cost to the American people.”
| Rural Advocate News | Thursday November 5, 2020 |
Washington Insider: Rich Nations Are Failing to Support Developing Country Borrowers Despite pledges of debt relief and expanded programs, the World Bank and International Monetary Fund have delivered meager aid to the developing world. The New York Times focuses on Pakistan which was “alarmingly short of doctors and medical facilities long before anyone had heard of COVID-19.” Then the pandemic overwhelmed hospitals, forcing some to turn away patients. At the same time, in Washington, two deep-pocketed organizations, the World Bank and the International Monetary Fund, vowed to spare poor countries from desperation. Their economists warned that immense relief was required to prevent a humanitarian catastrophe and profound damage to global prosperity. Emerging markets make up 60 percent of the world economy, by one IMF measure. A blow to their fortunes inflicts pain around the planet. But the World Bank and the IMF have failed to translate their concerns into meaningful support, says the Times. “A lost decade of growth in large parts of the world remains a plausible prospect absent urgent, concerted and sustained policy response,” concluded a recent report from the Group of 30, a gathering of international finance experts, including Lawrence Summers, a former economic adviser to President Barack Obama, and Treasury secretary in the Clinton administration. The wealthiest nations have been cushioned by extraordinary surges of credit unleashed by central banks and government spending collectively estimated at more than $8 trillion. Developing countries have yet to receive help on such a scale. The IMF and the World Bank—forged at the end of World War II with the mandate to support nations at times of financial distress—have marshaled a relatively anemic response, in part because of the predilections of their largest shareholder, the United States. During a virtual gathering of the two organizations this month, U.S. Treasury Secretary Steven Mnuchin urged caution. “It is critical that the World Bank manage financial resources judiciously,” he said, “so as not to burden shareholders with premature calls for new financing.” The World Bank is headed by David Malpass, a longtime government finance official who worked in the U.S. administration's Treasury Department and has displayed contempt for the World Bank and the IMF, the Times said. Under his leadership, the World Bank has required that borrowers deregulate domestic industry to favor the private sector as a condition for loans. The IMF is run by a managing director, Kristalina Georgieva, a Bulgarian economist who previously worked at the World Bank and who is answerable to the institution's shareholders. The U.S. administration has resisted calls to expand the IMF's reserves, arguing that most of the benefits would flow to wealthier countries. But the IMF has lent out only $280 billion, the Times says. That includes $31 billion in emergency loans to 76 member states, with nearly $11 billion going to low-income countries. The World Bank more than doubled its lending over the first seven months of 2020 compared with the same period a year earlier, but has been slow to distribute the money, with disbursements up by less than a third over that period, according to the Center for Global Development. The limited outlays by the IMF and the World Bank appear to stem in part from excessive faith in a widely hailed initiative that aimed to relieve poor nations of their debt burdens to foreign creditors. In April 2020, at a virtual summit of the Group of 20, world leaders agreed to pause debt payments through the end of the year. World leaders said the program would be a way to encourage poor countries to spend as needed, without worrying about their debts. But the plan exempted the largest group of creditors: the global financial services industry, including banks, asset managers and hedge funds. “The private sector has done zilch,” said Adnan Mazarei, a former deputy director at the IMF, and now a senior fellow at the Peterson Institute for International Economics in Washington. “They have not participated at all.” Concerns about developing countries' debts rested atop the reality that many were spending enormous shares of their revenues on loan payments even before the pandemic. For example. Since 2009, Pakistan's payments to foreign creditors have climbed to 35% of government revenues from 11.5%, the Times says. Ghana's payments swelled to more than 50% of government revenues from 5.3%. This month, the G20 extended the program into the middle of next year. Ms. Georgieva has chided private creditors for remaining on the sidelines. Private creditors have been reluctant to offer debt suspension because, in part, uncertainty over who will reap the benefits. Borrowing from China, for example, is both opaque and uncoordinated—and if western institutions forgo collecting on their debts, the money may simply be passed on to a Chinese lender rather than lifting health care spending. “International financial institutions are going to leave countries in much worse shape than they were before the pandemic,” said Lidy Nacpil, coordinator of the Asian Peoples' Movement on Debt and Development, a Manila-based alliance of 50 organizations. “Their interest is not primarily about these countries getting back on their feet, but to get these countries back into the business of borrowing.” So, we will see. The U.S. is now under increasing international pressure to support strengthened assistance and relief programs, buy those programs that rely on international institutions appear to have been low in priority. Whether and how that should change likely depends heavily on U.S. political trends and should be watched closely as this battle intensifies.
| Rural Advocate News | Thursday November 5, 2020 |
CFAP 1 Is Winding Down As farmers are enrolling and receiving funds from the Coronavirus Food Assistance Program 2 (CFAP 2), USDA's Farm Service Agency (FSA) has told state and county offices they need to make sure that any applicants for CFAP 1 who have not provided the needed forms or documentation to FSA must do so by November 20. FSA is closing out the CFAP 1 effort and “de-obligating” funds for the program on December 11. FSA will be notifying the affected producers about the information they need to provide and remind them of November 20 deadline.
| Rural Advocate News | Thursday November 5, 2020 |
Senate Ag Committee Members Mostly Return As Rep. Peterson Defeated Most in agriculture are lamenting the loss of House Ag Committee Chairman Collin Peterson, D-Minn., in Tuesday's election, bringing to a close his 30 years of representing the Minnesota district. That is a district that Peterson won in 1990 by defeating another long-serving incumbent — Rep. Arlen Stangeland, R-Minn. On the Senate side, members running for re-election will return in 2021. Senate Majority Leader Mitch McConnell, R-Ky., easily won re-election while Sen. Joni Ernst, R-Iowa, held off challenger Theresa Greenfield to win another term in the Senate. The race was hard-fought and saw Republicans link Greenfield to House Speaker Nancy Pelosi, D-Calif., while Democrats sought to paint Ernst as having “gone Washington.” Sen. Cindy Hyde-Smith, R-Miss., was declared the winner over former USDA Secretary Mike Espy with 66% of the vote counted. She held a margin of 58.1% to Espy's 39.9%. One of Georgia's Senate seats appears headed to a runoff as neither Republican Sen. Kelly Loeffler nor Democratic challenger candidate Raphael Warnock were able to capture 50% of the vote. Republican Doug Collins has already conceded in his challenge of Loeffler and that could point to more support for Loeffler in the expected January 5 runoff. Sen. Tina Smith, D-Minn., was declared the winner in her bid to return to the chamber, with 48.9% of the vote to 43.5% for Republican challenger Jason Lewis. Not returning, of course, is Senate Ag Committee Chairman Pat Roberts, R-Kansas, who opted not to seek re-election.
| Rural Advocate News | Thursday November 5, 2020 |
Thursday Watch List Markets Thursday morning gets back to business with USDA's weekly export sales report, U.S. jobless claims, a report on third-quarter U.S. productivity and an update of the U.S. Drought Monitor all due out at 7:30 a.m. CST. U.S. natural gas inventory is set for 9:30 a.m. The Federal Reserve will have a post-meeting announcement at 2 p.m. CST and no change in interest rates is expected. Weather Dry and unseasonably warm pattern across all crop areas continue Thursday. Harvest and fall field work will continue to progress. This pattern remains in place through the weekend.
| Rural Advocate News | Wednesday November 4, 2020 |
Ag Economy Barometer Reaches All-Time High The Purdue University/CME Group Ag Economy Barometer rose 27 points to a reading of 183 in October, setting an all-time high for the index. Farmers were more optimistic about both the future and current financial situations on their farms. The Current Conditions Index rose 36 points to a reading of 178, and the Future Expectations Index climbed 23 points to a reading of 186. Since bottoming out this summer, the ag economy has rebounded sharply, and the dramatic improvement in sentiment mirrors the turnaround in the farm income picture. Organizers say the early fall rally in commodity prices combined with government program payments boosted farm income. Corn and soybean prices continued to rally even though U.S. corn yields are expected to set a record high, and USDA projects soybean yields to be the fourth highest on record. Comparing their farm's financial condition today to one year ago, 25 percent of survey respondents said their farm was better off financially now than at the same time last year. ************************************************************************************ Wheeler Waiting on Courts Before Making RFS Decisions Environmental Protection Agency Administrator Andrew Wheeler is taking a wait and see approach regarding 35 waiver requests under the Renewable Fuel Standard. Administrator Wheeler told Agri-Talk earlier this week, "The refiners appealed that to the Supreme Court; we're waiting to see if they take it up, and what they do with that." Earlier this year, an appeals court ruled the EPA could not grant waivers for refiners whose previous wavers have lapsed. The oil industry is appealing the ruling. Wheeler adds, "I think it would be inappropriate for me to either grant or deny them until that litigation has completely run its course." The EPA is also considering an additional 17 gap-year waiver requests that are expected to be denied. In September, the EPA denied 54 gap year waivers. The Renewable Fuels Association at the time called the requests a “bizarre attempt" by the oil industry to circumvent the appeals court ruling. ************************************************************************************ Groups Call for Stronger Approach to Preserving Common Food, Wine Terms A coalition of agricultural groups is applauding a bipartisan letter sent this week by 111 members of Congress, urging stronger protections for American-made food and wine exports using common terms. The National Milk Producers Federation says the letter is an important message regarding the need for enhanced U.S. efforts to combat the European Union's attempts to ban U.S. exports of cheese, meat and wine products that are labeled with common terms – such as parmesan or bologna. The letter asks the U.S. Trade Representative and Department of Agriculture to make safeguarding common food and wine terms a core policy objective in all current and future trade negotiations. NMPF President and CEO Jim Mulhern states, “America’s dairy farmers have been unduly harmed by the EU’s efforts to limit market opportunities for U.S. dairy products.” In July, 61 Senators sent a similar letter requesting that the U.S. government enhance protections for common food and wine terms. ************************************************************************************ USDA Announces First Set of Great American Outdoors Act Projects The Department of Agriculture this week delivered to Congress its priority list of deferred maintenance projects for Great American Outdoors Act funding in fiscal year 2021. The bill, USDA says, will protect and enhance the economies of numerous gateway communities that surround public lands by restoring and maintaining critical access and infrastructure. Congress passed the bill in July and the President signed it into law in August. USDA says the project list breakdown, now available on the agency's website, will help the Forest Service reduce its $5.2 billion deferred maintenance backlog. The projects will improve access and visitor experiences by repairing and restoring roads, trails, bridges, recreation sites, and other facilities on national forests and grasslands. However, the Public Lands Council calls the bill a federal land grab. Following Senate passage of the bill this summer, the organization stated the bill “sentenced existing and future lands and waters to the same fate facing current federal assets – billions of dollars in deferred maintenances.” ************************************************************************************ NCBA: Industry Feedyard Audit Tool Now Available The National Cattlemen’s Beef Association this week released a comprehensive industry feedyard audit tool. The organization says the Cattle Industry Feedyard Audit will serve as a standardized audit tool based on the science and common sense established in the Beef Quality Assurance, or BQA program. Though the audit tool is owned by NCBA, auditing of feedyards will only be conducted through business-to-business activity within the cattle industry. NCBA will be maintaining the tool with updates as science dictates. To ensure consistency and integrity in auditing, the Cattle Industry Feedyard Audit tool has been certified through the Professional Animal Auditor Certification Organization. The Cattle Industry Feedyard Audit was built based on BQA principles and includes key standards of animal care that are directly related to animal health and welfare that contribute to a safe beef supply. Results from the audit can provide information back to the feedyard to drive improvement and measure the effectiveness of the operation’s implementation of BQA standards. ************************************************************************************ Trimble to Donate up to $100,000 to She Feeds The World Project Trimble will match donations up to $100,000 to support global poverty-fighting non-profit organization CARE and their She Feeds the World program this month. Aiming to improve access to food and nutrition for 50 million women and youth, small-scale producers and their families, She Feeds the World supports programs and projects in more than 76 countries in Africa, Asia and Latin America. Through the donation-matching campaign, the agriculture community will have the opportunity to donate to increase the campaign's overall impact for developing rural communities. Trimble's Jim Chambers says, "it is greatly important to us that we support programs that connect women with the necessary resources for their farms, families and communities to succeed." To participate, individuals can donate to CARE through Trimble's website, ag.trimble.com, during November for each dollar to be matched 1:1. Trimble is also offering farmers the opportunity to enter to win a GFX-750 display and NAV-900 bundle, no donation necessary.
| Rural Advocate News | Wednesday November 4, 2020 |
Washington Insider: Recent and Future Trade Policy Bloomberg is reporting this week that the “consensus view” is that since his arrival on the global political scene in 2016 President Donald Trump has rewritten the politics of trade and ended a 70-year march of perpetual trade liberalization and the acceleration of globalization that came with it. The report then asks readers to set aside the economics and what administration trade policies have – or have not – actually achieved in dollars-and-cents substance. Bloomberg's experts see the administrations greatest achievement concerning trade is the shift away from Republican free-trade orthodoxy – towards a nationalist protectionism illuminated by what it took to garner working-class votes in forlorn industrial swing states. Bloomberg then suggests that many expect that the political shift means “that Democrats and Republicans alike will heretofore embrace the same trade objectives forever more.” However, Bloomberg seems not to be persuaded and it questions whether that is really how the administration rewrote the politics of trade. The report moves to present a “contrarian view” that calls the past four years a “very loud civics lesson in the misguided economics of protectionism and the costs of tariffs and economic nationalism.” The analysis suggests that in this election administration trade policies have actually been a vulnerability rather than a strength. For example, Bloomberg thinks Americans' view of trade is more optimistic than ever and has only become more so under this administration. In February 2016 when Gallup asked Americans whether they saw foreign trade as more of a threat or opportunity, the optimistic view won 58-33. By February of this year, those seeing trade as opportunity had grown to 79% of those polled. That's just one poll, the report says, but reminds that “Gallup has been asking the same question annually since 1992 and this year's result is the highest on record.” Bloomberg also thinks that critics of the administration see the ongoing trade wars as a political vulnerability in swing states. When author Don Winslow teamed up with Bruce Springsteen on an ad targeting voters in the battleground state of Pennsylvania this year, he took direct aim at the administration's trade war with China and his steel tariffs – and notes that by election eve that ad had been viewed 8.8 million times and retweeted almost 100,000 times. Overall, Bloomberg notes that tariffs aren't well-liked. The president famously called himself “Tariff Man,” and import taxes are the ideological spine of his trade policy. But polls show they actually haven't been that popular, and polls show more Americans believe tariffs hurt the U.S. economy than help it. The report point out that even though the administration claims its tariffs saved U.S. steel companies, with “production still slumping and jobs near an all-time low, the iconic U.S. industry is seeking a longer-term solution.” Overall, Bloomberg thinks that considering the range of issues from the taxing of U.S. corporations to the independence of the Federal Reserve, President trump and former Vice President Joe Biden offer voters vastly different economic policy agendas. For example, it says that a Democratic victory would likely mean rapid delivery of substantial additional support from stimulus programs — and that Republicans under George W. Bush from 2001-2006 and again from 2017-2018 – instituted sizeable tax cuts. Under unified Democratic control in 2009-2010, spending remained high in the wake of 2009 stimulus legislation. The expansive $3.5 trillion Heroes Act House Democrats proposed in May illustrates the sort of top-line proposal that could yet become law after the election. A big-ticket package also became law just after President Obama's inauguration in early 2009, passed by a Democratic Congress under a similar backdrop of high unemployment. A Donald Trump win coupled with a divided Congress could prompt a moderation in fiscal hawkishness from Senate Republicans. A $1.5 trillion fiscal package would push 2021 GDP growth up to 4.3%. One area where the president has a lot of discretion is on how to shape the relationship with China. Bloomberg examines U.S.-China policy in terms of strategy – where administrations operate on a spectrum from engagement to containment – and tactics, which can be narrow and procedural or wide and unpredictable. On strategy, President Barack Obama favored engagement. On tactics, the approach was procedurally predictable and focused on a narrow set of instruments. Relations during President Trump's first term started bad and looks set to end worse, Bloomberg says. Engagement is out, containment in. The range of policy instruments is wide and their use unpredictable. If the administration wins a second term, Bloomberg expects more of the same. If the Democrats win, Bloomberg thinks, U.S. – China policies would soften but not fundamentally alter America's new focus on the risks in China's rise. So, we will see. No one is really sure what lies ahead – but the current concerns are intense and producers, like most others, should watch carefully as these fights play out, Washington Insider believes.
| Rural Advocate News | Wednesday November 4, 2020 |
Department Of Labor Releases Final Rule On H-2A Wage Plans The Department of Labor (DOL) has released a final rule which sets terms for how the agency plans to set the Adverse Effect Wage Rates (AEWR) for H-2A workers in the wake of USDA's decision to halt data collection and release of its Farm Labor Survey (FLS) report. DOL is putting forth the rule even as court has ordered USDA to continue the survey while a court challenge brought by United Farmworkers unions proceeds, citing USDA's decision as a factor in expediting the process. But some other aspects of the DOL proposed rule on this topic will come at a later time. DOL's final rule would set AWERs for field and livestock workers through calendar year 2022 on average hourly wages included in the November 2019 FLS. After 2023, the final rule proposes fixing AEWR increases annually for those positions based on the change in the Bureau of Labor Statistics' (BLS) Employment Cost Index (ECI) for wages and salaries for the preceding 12-month period. Expectations are the DOL final rule could be challenged in court as well plus the ongoing litigation over USDA's decision on the FLS could also impact the final outcome.
| Rural Advocate News | Wednesday November 4, 2020 |
CFAP 2 Payouts Clear $8.7 Billion USDA has made $8.8 billion in payments under the Coronavirus Food Assistance Program 2 (CFAP 2) as of November 1, including $4.4 billion in acreage-based payments, $2.4 billion for livestock, $1.04 billion for sales commodities, $876.9 million for dairy and $21.7 million for eggs/broilers. By commodity, the payouts include $2.5 billion for corn, $1.9 billion for cattle, $982.2 million for sales commodities, $946.8 million for soybeans, $876.9 million for milk, $461.9 million for wheat, $418.6 million for hogs/pigs, and $195.2 million for upland cotton. Iowa continues to lead all states with $870.4 million, followed by Nebraska at $603.8 million, Minnesota at $598.8 million, Illinois at $567.0 million, California at $468.6 million, Kansas at $451.3 million, South Dakota at $406.2 million and Wisconsin at $406.1 million. CFAP 1 payments total $10.3 billion as of November 1, with payouts of $1 billion or more for three commodities—$4.3 billion for cattle, $1.8 billion for corn and $1.8 billion for milk. The funds continue to provide a financial infusion for U.S. agriculture, but prospects are uncertain for 2021 as a lack of these ad hoc payments will result in a major downturn in forecast U.S. farm income.
| Rural Advocate News | Wednesday November 4, 2020 |
Wednesday Watch List Markets Tuesday is election day in the U.S. and the morning's only official report is for September U.S. factory orders, set for 9 a.m. CST. Election-related gossip is likely to build through the day, but traders will still be attentive to the latest weather forecasts for the U.S., South America and Black Sea region. Any export news that emerges will also be noticed. Weather Warm and dry conditions will cover all crop areas Tuesday. Record or near-record highs are possible in many locations, especially north. This combination will favor continued harvest and wheat planting progress along with fall field work. Livestock conditions are beneficial as well.
| Rural Advocate News | Tuesday November 3, 2020 |
Biden or Trump, What Does the Future Hold for Farmers? Election day is finally here—and represents an end to a long campaign season. While the results may be delayed, and there are signals of a messy outcome, for farmers and ranchers, one certainty is the likely reduction in federal direct payments. Experts seem to agree that the record direct payments to farmers this year is not a sustainable approach. Either candidate will likely face finding a solution to drawback those payments. If former Vice President Joe Biden should win, Politico points out you can expect a major shift in farm and food programs. Most notably would be changes to increase support for nutrition programs, like the Supplemental Nutrition Assistance Program, and an increased focus on agriculture’s role in climate change. A second term with President Donald Trump brings the expectation of continued deregulatory moves, a continuation of the current trade climate, and a likely target to streamline SNAP and other nutrition programs. ************************************************************************************ AEM: Next President Should Focus on Infrastructure A survey by the Association of Equipment Manufacturers shows the industry wants the next President to prioritize infrastructure investment. Regardless of who the next President is and which party controls the House or Senate, AEM says the outcome of the 2020 elections will have a significant impact on the equipment industry and the economy. Despite the ongoing impact of the COVID-19 pandemic and the economic downturn, nearly half of respondents are optimistic about the current state of the industry. Equipment manufacturing executives say the next President should prioritize investing in the nation’s infrastructure, enact effective tax, fiscal, and monetary policy, and negotiating fair trade agreements with other countries during his first year in office. Most executives say that the Republican party will do a better job supporting and advancing the industry’s policy priorities. However, a plurality say that the Democratic party will do a better job expanding access and improving the affordability of high-quality healthcare services for all Americans. ************************************************************************************ Labor Department Finalizes H-2A Wage Rule The Department of Labor Monday issued a final rule that updates the methodology for determining the annual Adverse Effect Wage Rates in the H-2A visa program. The Trump administration claims the new rule improves the consistency of the wage rates, provides stronger protections for workers, and establishes better stability and predictability for employers. Agriculture Secretary Sonny Perdue praised the announcement, stating the update "will ensure greater stability for farmers and help them make long term business decisions rather than facing uncertainty year after year.” The move follows USDA's action to discontinue a report previously used to set wages. However, a federal judge ordered USDA to resume the report. The reality of the H-2A rule is farmers can pay significantly lower wages to H-2A workers. The United Farm Works union last month claimed the Trump administration effort would cut field laborers’ wages by more than five percent in California, up to 27 percent in Oregon and 46 percent in Idaho. ************************************************************************************ Lawsuit Challenges EPA Reapproval of Atrazine Public-interest groups sued the Environmental Protection Agency last week over its decision to reapprove atrazine. The groups claim atrazine is linked to birth defects and cancer in humans. The lawsuit contends that the agency failed in its legal duty to ensure that the pesticide would not cause unreasonable harm to public health and the environment. An attorney for the Center for Food Safety says, “We are in court to make sure EPA answers for its blatant disregard of the lives of our nation’s farmworkers and their children.” The lawsuit also challenges the EPA’s reapprovals of two other pesticides in the triazine class, which were part of the same review process as atrazine. Farm groups welcomed the September reapproval announcement made in Missouri. At the time, Missouri Natural Resources Department Director Carol Comer stated, “EPA is using sound science to make decisions that protect children and workers, provide predictability and flexibility for our agricultural producers, and protect the environment.” ************************************************************************************ NPPC Petition Leads to U.S. Trade Sanctions Against Thailand U.S. Trade Representative Robert Lighthizer over the weekend announced the suspension of $817 million in trade preferences for Thailand under the Generalized System of Preferences. Lighthizer took the action because the country hasn’t made sufficient progress providing the United States with “equitable and reasonable market access” for pork products. The decision follows a 2018 petition by the National Pork Producers Council asking the USTR to review Thailand’s eligibility for the GSP program, one that offers duty-free treatment to certain goods entering the United States. NPPC President Howard AV Roth says, “For years, Thailand has taken full advantage of special U.S. trade benefits, while imposing a completely unjustified de facto ban on U.S. pork.” The United States is Thailand’s number one export market, with almost $4 billion of products annually sent to America under the GSP. Yet, NPPC says Thailand maintains a de facto ban on U.S. pork imports through high tariffs and several non-tariff barriers. ************************************************************************************ China Flying in Hogs to Replenish Herds China is flying a record number of live hogs into the country as it seeks to rebuild hog herds. The nation is seeking to improve genetics and boost productivity, according to Bloomberg News, by flying in more than 15,000 hogs so far this year. The move comes as China seeks to increase its hog herd following the African swine fever outbreak. The hogs are worth an estimated $32 million, compared to just $3 million of hogs imported a year ago. China is seeking to modernize its hog production as well, shifting to a model of large-scale production. Meanwhile, the more than 15,000 hogs flown into the country come from Denmark, France and the United Kingdom. The number of breeding sows rose 28 percent from a year earlier to 38 million by the end of September. China is also importing a record value and volume of processed pork to fill the protein gap while its herd is repopulated.
| Rural Advocate News | Tuesday November 3, 2020 |
Washington Insider: Looking to Robots Bloomberg is reporting this week that although the recent U.S. political focus has been on ways to bring manufacturing back, some business people believe that “both candidates are going about it the wrong way — talking about tariffs or taxes, when they should be smoothing the road for robots.” The report highlights Kent Bicycles, a firm that employs about 150 people at a plant in Manning, South Carolina, that opened six years ago. The company still does most of its manufacturing in China and Taiwan and even its recent partial reshoring was a risky venture that went against the tide. Owner Mark Kamler says he would like to take it further and quadruple his U.S. output to 1 million bikes a year. But he says he's not getting the kind of government help he needs. The administration has tried to boost manufacturing by imposing tariffs, Bloomberg says. In the election campaign, both parties are promising to bring factories home — with a mixture of incentives for companies that do — and penalties on those who don't. Kamler is critical of policies that rely on tariffs, and notes that industrialists in rival countries get substantial help from politicians when they seek to upgrade plants to make better use of robot technology. “The very first thing the U.S. government should do is to help U.S. companies automate.” Manufacturing, which employed about one-quarter of the U.S. workforce in the 1950s compared with less than 9% now, can once more become a bedrock of middle-class jobs, Bloomberg noted. That's part of what President Trump meant by “make America great again.” It's been a theme of Biden's campaign too, with a promise to “create millions of new manufacturing and innovation jobs.” When the issue is framed that way, automation tends to appear--along with globalization — as an enemy of employment. However, Bloomberg says that “walking through Kent's factory, it's easy to see why. The plant houses a mix of manual and automated processes, and moving from one to the other feels like time-travel.” Kent's expansion plans would see more of the assembly process carried out that way. Still Kamler says that he'll have to hire more workers to tend to the robots he plans to buy. “There'll be job openings, and they'll likely be better compensated. The paint line requires a higher skill set and pays as much as $1.50 an hour more than the assembly line, he said. The Manufacturing Institute says its research shows that about three-quarters of manufacturers are planning to boost investments in smart-factory technology over the coming year. They also think the biggest impact of automation on the workforce will be to create opportunities for people who know how to operate the new machinery. Carolyn Lee, the institute's executive director, estimates that there are already about 400,000 openings like that, and says manufacturers will need to fill 4.6 million of them by 2028. “One of the prime benefits of automation is that it replaces tasks that are repetitive or physically taxing, freeing people to focus on tasks that require human skills and creativity and creating even more jobs along the way,” she says. Kamler notes that labor unions see this as a “rose-tinted view” and are more worried about the jobs that will disappear — about 40 million in the U.S. by 2030, according to a McKinsey study. While people fear automation will cut jobs, Kamler says, he expects to need to hire more OS workers to tend to the robots he plans to buy. Shielding employees from that risk is becoming part of the bargaining process. In 2018, a landmark agreement negotiated by Las Vegas culinary workers with local hotels required employers to give notice six months before introducing machines that could displace workers--and to train their staff in how to use them. The episode shows how automation has spread beyond factories and deep into service industries — where most job losses during the pandemic shutdown have been concentrated, Bloomberg says. That could be ominous for the laid-off workers. However, Kent Bicycles has come through the slump without any job cuts — thanks to the surge of interest in cycling among locked-down Americans. It came as a relief to Kamler, after a period when the company got hit by tariffs on almost every part it imports. Kent had to push prices up as much as 20%, and temporarily lay off about 40 staff — one reason Kamler, a Republican, was irritated when his factory briefly appeared in a local campaign video. “We went months of shipping lots of bicycles and losing money” because of the administration's tariffs, he says. Now, though, “business is off-the-charts crazy good.” But even with all this new demand, Kamler says robots are the key to ramping up output–because expanding manual production lines on that scale will push costs too high, and make his bikes uncompetitive. He reckons customers are willing to pay maybe 10% extra for made-in-America products, but that's the limit. “If we're going to make bicycles in a big way, we need a lot more automation,” he says. 'We just can't do it the way we used to do it years ago.” So, we will see. There is wide support in both parties now for worker protections and perhaps only modest interest in retooling jobs to be more competitive — the way Kent wants to do. Clearly, the coming debate over trade policy will need to consider a broad range of implications and will be deeply controversial—and should be watched closely by producers as it emerges, Washington Insider believes.
| Rural Advocate News | Tuesday November 3, 2020 |
US Removes Parboiled Rice From GSP Duty-free treatment for parboiled rice from several countries under the Generalized System of Preferences (GSP) will be removed via an executive order issued October 30 by the White House. The announcement Friday indicated the administration would modify rice tariff lines under the GSP, with Sen. John Boozman, R-Ark., saying the move is a “step in the right direction is a win for American rice producers. Our rice farmers can compete with anyone on the world stage. This update will help level the playing field to ensure our American farmers are not being undercut by international growers. I appreciate the Administration for listening and responding to this petition from our farmers.” The USA Rice Daily indicated the tariff line adjustment was for parboiled rice and would primarily affect Argentina, Brazil, Pakistan, Paraguay and Thailand. Parboiled rice from those countries will face an 11.2% US tariff, the group said. The USA Rice Federation sought action in March to remove all six tariff lines for rice covered under the GSP.
| Rural Advocate News | Tuesday November 3, 2020 |
Australia, China Trade Tensions Continue To Rise China over the week imposed new bans on imports of products from Australia, including lobster and timber, with reports indicating that items like copper and sugar could also be targeted. The action resulted in clearance of Australian rock lobster shipments to be delayed in Shanghai on increased inspections. On Friday, the General Administration of Customs of China (GACC) issued a warning notice to exporters saying that it had found a pest—the bark beetle Ips grandicollis—in imported log timber from Queensland and they banned all log shipments coming in from the Australian state. A China foreign ministry spokesman confirmed today that Chinese authorities have repeatedly found “biohazards” in imports of Australian timber. Meanwhile, China rejected an appeal by Australia on tariffs that it imposed on Australian barley. Australia had sought a review of the tariffs which totaled more than 80.5% that were put in place earlier this year. While the frictions between Australia and China are rising, it is not yet clear that the situation has prompted any shift of business yet to the
| Rural Advocate News | Tuesday November 3, 2020 |
Tuesday Watch List Markets Tuesday is election day in the U.S. and the morning's only official report is for September U.S. factory orders, set for 9 a.m. CST. Election-related gossip is likely to build through the day, but traders will still be attentive to the latest weather forecasts for the U.S., South America and Black Sea region. Any export news that emerges will also be noticed. Weather Warm and dry conditions will cover all crop areas Tuesday. Record or near-record highs are possible in many locations, especially north. This combination will favor continued harvest and wheat planting progress along with fall field work. Livestock conditions are beneficial as well.
| Rural Advocate News | Monday November 2, 2020 |
Commodity Classic Goes Virtual in 2021 The next Commodity Classic will now be a virtual event. The annual conference and trade show had been scheduled to take place March 4-6, in San Antonio, Texas. The change to an alternative digital format became necessary because of restrictions related to COVID-19. The new convention format will take place during the first week of March 2021. “This is about doing the right thing for our farmers, exhibitors, stakeholders, and the broader community in terms of health and safety, which is our top priority,” says Anthony Bush of the National Corn Growers Association and who is Co-Chair of the 2021 Commodity Classic. “After careful deliberation, we determined the COVID-19 restrictions would prevent us from delivering the type of high-quality experience people have come to expect from the Commodity Classic.” Commodity Classic is now redirecting its efforts toward developing alternative methods of connecting with farmers and agricultural stakeholders. “We realize the total experience can’t be completely replicated online,” Bush adds. “Education is a key component of the event, and we are already looking at ways to deliver the high-quality content farmers expect at the Commodity Classic.” The transition to an online event is already underway and more information will be available in the weeks ahead. The 2022 Commodity Classic will be March 10-12, 2022, in New Orleans, Louisiana. ********************************************************************************************** USDA Releases 2019 Pesticide Data Report The USDA published it’s 2019 Pesticide Data Program’s Annual Summary. The report shows that nearly 99 percent of the tested samples had pesticide residues below benchmark levels established by the Environmental Protection Agency. The two agencies work together every year to identify which foods get tested on a rotating basis. The Agricultural Marketing Service works with state agencies to collect and analyze pesticide residue levels of selected foods. In 2019, the agencies tested 9,697 samples of fresh and processed foods, including fruits and vegetables, as well as rice and oats. USDA has tested a variety of commodities for more than 25 years, which included tests on fresh and processed fruits and vegetables, dairy, meat, poultry, grains, fish, rice, specialty products, and water. USDA tests a wide variety of domestic as well as imported foods, with a strong focus on food consumed by infants and children. The EPA relies on the Pesticide Data Program findings to conduct dietary risk assessments and to ensure that any pesticide residues in foods remain at levels that EPA has determined to be safe. USDA uses the data to help American farmers improve agricultural practices and to implement the Department’s Integrated Pest Management Program. The Food and Drug Administration and EPA are notified immediately of any test showing residue levels that could pose a public safety risk. ********************************************************************************************** Scientists want Tax on Meat, Livestock for Pandemic Prevention Lawmakers should consider putting taxes on livestock production and meat consumption to reduce the risk of future deadly pandemics. Reuters says that is the conclusion of a group of international experts called the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, which has more than 130 member states. The group published a study last week calling for better protection of nature. “Overconsumption of meat is bad for our health and unsustainable in terms of the environmental impact,” says zoologist Peter Daszak, who chaired the study. “it’s also a driver of pandemic risk.” The group says outbreaks of influenza viruses and new pandemic strains have emerged for the most part because of the incredibly dense production of poultry and pigs in some parts of the world, driven by our global consumption patterns. “Breeding cattle for beef is another well-known cause of deforestation and ecosystem destruction in Latin America,” Daszak added. The study warns that pandemics will emerge more often, spread faster, cost more, and kill more people than COVID-19 without bold action to halt the habitat destruction that helps viruses hop from wildlife to humans. The group is also asking governments to step up efforts to avert pandemics instead of responding after they hit. ************************************************************************************ USDA Suspension of Farm Labor Survey Overturned by Court Farmworker advocates are pleased the U.S. District Court for the Eastern District of California issued a temporary restraining order and an injunction against the USDA decision to suspend the annual Farm Labor Survey. The Packer says unless the decision gets appealed, it means USDA has to conduct its Farm Labor Survey and issue its annual Farm Labor Report in November. The survey determines the adverse effect wage rate for the Department of Labor’s H-2A guest agricultural worker program. The United Farm Workers and plaintiffs sued the USDA for its decision to suspend the survey. The UFW said that in the absence of the survey results, wages for guest workers would decline sharply because the Department of Labor would not have data to establish new wage rates other than state minimum wages. Michael Marsh, President of the National Council for Agricultural Employers, says he doesn’t know if the USDA will appeal the decision, noting that, “They could ask for a stay of the lower court’s order, pending an appeal.” He says another relevant development is a Department of Labor proposal to create a new method to determine H-2A wages, which is in the final review stage. *****************************************t***************************************************** Dairy Industry Annual Meeting Notes Success Despite COVID-19 During a virtual annual meeting of dairy industry groups, Dairy Management Incorporated reflected on strategically adjusting business plans due to the impacts of COVID-19. They told farmers and industry representatives that this year’s results are due to industry unity, agility, and relentless relationship building. “The systems farmers have put in place work, and in normal times, we celebrate those successes,” says Barbara O’Brien, President of DMI. “What the last seven months have proven is that it also works in difficult times, frankly times we couldn’t have imagined.” The virtual meeting included representatives from the United Dairy Industry Association, National Dairy Promotion and Research Board, and the National Milk Producers Federation. DMI CEO Tom Gallagher says one of the highlights of the USDA per capita report shows consumption reached 653 pounds per person in 2019, a 60-year high for dairy. “This comes as a shock to a lot of people who say dairy is dead,” Gallagher says. “They think about the decline in fluid milk, but they don’t think about all of the other areas that have grown exponentially.” Gallagher credits these successes to farmers who took leadership in creating the dairy promotion program through a Congressional act in 1983. Per capita growth since that year has increased by 80 pounds. ********************************************************************************************** Historic National FFA Convention and Expo Wraps Up for 2020 The 93rd National FFA Convention and Expo may have been virtual this year, but numbers indicate that many members across the country enjoyed the event. The number of viewers and participants totaled well over 217,000 people. Due to COVID-19, National FFA made the decision back in late June to host the largest student event virtually this year instead of in-person. The event kicked off Tuesday of last week, and students had the opportunity to attend events on a virtual platform. Convention attendees had a chance to view the live general sessions on RFD-TV, The Cowboy Channel, and streaming on FFA.org., where they saw peers from across the country receiving recognition for their hard work and heard from this year’s national FFA officer team. “The virtual national FFA convention and expo was a great success,” says Mandy Hazlett, associate director of convention and events for National FFA. “While it might be different this year, we are thrilled to have offered experiences similar to what our members would have enjoyed during an in-person event.” She has good news for those who registered and didn’t get to see everything they wanted. Students will still have all access to all this great content and videos through the end of the year. “That means if they didn’t get it all covered in three days, they have time to go back,” Hazlett adds.
| Rural Advocate News | Monday November 2, 2020 |
Washington Insider: WTO Fight Over Director General Position Bloomberg is citing the American Journal of Transportation to report that World Trade Organization members are confronting the reality that the future of the Geneva-based institution is now in the hands of the American electorate. Trade officials in capitals around the world are evaluating their options following the Trump administration's decision Wednesday to block the appointment of Ngozi Okonjo-Iweala as the WTO's next director-general. The U.S. is backing South Korean trade minister Yoo Myung-hee despite overwhelming support from other countries for Okonjo-Iweala, a Nigerian former finance minister who also holds U.S. citizenship. Some officials are concluding that if President Trump loses the presidential election Nov. 3 they should postpone the selection process until after Joe Biden is inaugurated on Jan. 20. A Trump win would give U.S. Trade Representative Robert Lighthizer fresh momentum to re-engineer oversight of global trading rules and the WTO has been his nemesis for years. “The U.S. election is obviously pivotal now,” said Rufus Yerxa, president of the National Foreign Trade Council in Washington and former WTO deputy director-general. “Where the WTO General Council takes this depends on whether they're in another brutal showdown with Lighthizer or can afford to wait him out and make a deal with a new U.S. administration.” Lighthizer issued a strong statement of support for Yoo, signaling no wiggle room in the American position. According to people close to Lighthizer, he views Okonjo-Iweala, a longtime top official at the World Bank, as being too ideologically aligned with internationalists like Robert Zoellick, a former USTR from the Bush administration who worked with her when he was president of the Washington-based bank. “Minister Yoo is a bona-fide trade expert who has distinguished herself during a 25-year career as a successful trade negotiator and trade-policy maker,” the USTR's office said in a statement. “The WTO is badly in need of major reform. It must be led by someone with real, hands-on experience in the field.” Molly Toomey, a spokeswoman for Okonjo-Iweala, responded by saying, “WTO members wouldn't have selected a DG who is missing any skills or qualifications.” For WTO members, there are few desirable options if President Trump emerges victorious in next week's vote. Most are unwilling to back Yoo, who decided not to withdraw from the race after the WTO's selection panel named Okonjo-Iweala the candidate most likely to attract consensus support from the WTO's members. Okonjo-Iweala “clearly carried the largest support by members” and “clearly enjoyed broad support from members from all levels of development and from all geographic regions,” WTO General Council Chairman David Walker, who is from New Zealand, said in a statement on Wednesday. It's possible that members could force a resolution to the impasse by holding a vote to select the next WTO director-general by a qualified majority. Okonjo-Iweala would likely win such a vote but that path would be unprecedented and harmful for the consensus-oriented WTO. WTO decisions are made by a consensus of its 164 members, which means a single country can stall to pressure others. A core tenet of Lighthizer's approach to international trade is his desire to defend America's national sovereignty over trade policy. So any move by WTO members to go against U.S. interests could provoke a sharp response from Trump, who has threatened to withdraw from the WTO entirely. Advisers in the Biden administration, meanwhile, have advocated for greater engagement with U.S. allies and to strengthen multilateral institutions like the WTO. “Reaffirming, strengthening our core alliances and partnerships with democratic countries is probably (Biden's) leading international priority,” said Tony Blinken, a foreign policy adviser for the Biden campaign during a recent webinar hosted by the U.S. Chamber of Commerce. “We've got to repair trade and economic relations that have been in disarray.” Wednesday's setback came after Okonjo-Iweala secured the support of the European Union, Japan, and much of Africa and Latin America. “The resolute global majority and that of the Council to propose Dr. Okonjo-Iweala to be the new DG of WTO speaks to the overwhelming global consensus supporting her candidature,” Ebba Kalondo, spokesperson to African Union Commission Chairperson Moussa Faki, said in a statement Thursday. “We trust that this global consensus will prevail.” China said it supported the outcome of the WTO process, and the EU reiterated its commitment to remain engaged. To avoid a prolonged stalemate, members will work until Nov. 9 to try to reach a consensus. Meanwhile, some WTO staff paused for a dose of levity on Thursday as a tongue-in-cheek reminder circulated saying that four deputies director-general were still running the organization. So, we will see. USTR has long been critical of the WTO and the United States has frequently used what it called a “Get Tough” policy that relied heavily on tariffs—and has faced strong criticism from trading partners as a result. In the current U.S. election fight, both sides have pushed “buy American” policies, so the immediate outcome of the election may make less difference than some expect. However, trade policies are highly important to U.S. producers who should watch closely as trade policy debates emerge in the coming months, Washington Insider believes.
| Rural Advocate News | Monday November 2, 2020 |
Brazilian President Says Commodity Imports Taking Place As Domestic Prices Rise Brazil is importing staple commodities like soybeans as the country if facing rising domestic prices, according video comments on social media from President Jair Bolsonaro. "We are importing soy now because the price is going up," Bolsonaro said, but did not mention any specific amounts. Market chatter has indicated the volume of soybean purchases is not large, with reports mentioning at least one cargo sold last week. USDA's Export Sales report for the week ended October 22 showed no U.S. soybean sales to Brazil, but did list 5,920 metric tons of wheat, taking total U.S. export commitments to Brazil to 529,158 metric tons, all of it shipped. USDA also shows outstanding wheat sales of 100,000 metric tons for 2021/22 to Brazil. U.S. export commitments of rice to Brazil are at 115,250 metric tons.
| Rural Advocate News | Monday November 2, 2020 |
Judge Blocks USDA End Of Farm Labor Survey USDA's September 30 announcement that it was suspending data collection and release of its Farm Labor Survey has been blocked by U.S. District Judge Dale Drozd of the U.S. District Court for the Eastern District of California. United Farm Workers (UFW) union and the UFW Foundation brought the suit, charging USDA did not follow the Administrative Procedures Act in suspending the FLS which is used by the Department of Labor to set minimum wages for guest workers under the H-2A program. The groups said the end of the FLS survey could mean that the Adverse Effect Wage Rate (AEWR) for H-2A workers could revert to federal or state minimum wage levels to the detriment of workers as those are lower than the AEWR rates. It is not clear whether USDA will appeal the action.
| Rural Advocate News | Monday November 2, 2020 |
Monday Watch List Markets The first Monday of November starts with the ISM index of U.S. manufacturing, due out at 9 a.m. CDT. USDA's weekly report of grain export inspections is out at 10 a.m. CDT, followed by a monthly Fats and Oils report at 2 p.m. and Crop Progress at 3 p.m. Traders will continue to monitor the latest weather forecasts and any export news that develops. Weather Warm and dry conditions across all major crop areas will favor harvest and fieldwork Monday. This combination is especially useful for areas that had rain and snow a week ago.
| Rural Advocate News | Friday October 30, 2020 |
La Nina Fueling Western Drought More than half of the United States is experiencing a drought as La Nina favors warmer and drier weather across much of the country. The latest U.S. Drought Monitor shows much of the drought west of the Mississippi River and extends into Illinois and Indiana, as well as the Northeast. Drought conditions cover 91 percent of the 11 states in the West as determined by the Drought Monitor, with extreme drought conditions covering 40 percent of the region. That drought area expands into west Texas and the Plains states. Drought conditions cover 98 percent of the High Plains states, and 35 percent of the Midwest. The southeast, including Louisiana, are largely spared from drought conditions, but at the cost of an active hurricane season. Earlier this month, the National Oceanic and Atmospheric Administration reported the ongoing La Nina is expected to expand and intensify drought across the southern and central Plains, eastern Gulf Coast, and in California during the months ahead. ************************************************************************************ Gray Wolf Delisted from Endangered Species List The Department of the Interior this week removed the gray wolf from the endangered species list, signaling a successful recovery under the Endangered Species Act. The gray wolf spent more than four decades on the list, but the population is now thriving in the lower 48 states. State and tribal wildlife management agencies will now be responsible for the management and protection of the gray wolf. American Farm Bureau Federation President Zippy Duvall says the action shows “careful management and partnerships between federal and state agencies can result in the successful recovery of a once-threatened species.” A National Cattlemen’s Beef Association representative states, "The road to recovery and delisting has been fraught with purely political lawsuits that promoted emotion over fact, and the facts are clear: the gray wolf population is recovered.” National Association of Conservation Districts President Tim Palmer adds, “Its delisting is a credit to the hard work of locally-led conservation.” The gray wolf has been federally protected under ESA since 1967. ************************************************************************************ Cattle Groups Discuss need for Beef Industry Reforms Cattle groups met in Florida this week to discuss reforms to the beef industry. The meetings included the U.S. Cattlemen's Association, the Organization for Competitive Markets, and R-CALF USA. The National Cattlemen's Beef Association, the nation's largest cattle group, was invited but did not participate. NCBA President Marty Smith stated, “NCBA will not participate in events with organizations litigating against NCBA or the Beef Checkoff, nor will we engage in events that lend a voice to anti-agriculture activists.” Smith claims the Organization for Competitive Markets is “solely a front for animal rights activists.” OCM is spearheading a petition calling for a referendum vote on the Beef Promotion and Research Order, or the beef checkoff. OCM claims checkoff dollars managed by NCBA "through questionable if not illegal ways…often wind up in the pockets of industrialized agriculture.” The groups included in the Florida meetings support beef checkoff reforms, country of origin labeling, and a breakup of the “big four” meatpacking companies. ************************************************************************************ NMPF: FDA Must Enforce Fake-Dairy Rules The National Milk Producers Federation wants the Food and Drug Administration to ensure imitation dairy product rules are properly enforced. The organization Thursday made the ask to the agency's ombudsman, citing little indication of promised action. NMPF President and CEO Jim Mulhern says, “The FDA’s Office of the Ombudsman must intervene to break the bureaucratic logjam.” The FDA ombudsman, based in the agency commissioner’s office, “serves as a neutral and independent resource for members of FDA-regulated industries when they experience problems with the regulatory process,” according to the agency. NMPF urges the office to take appropriate action to remedy the FDA's lax approach to enforcing its own rules on the use of dairy terms on products containing no dairy ingredients. The organization says unlawfully labeled plant-based imitation foods "poses an immediate and growing risk to public health." NMPF last year released its own road map offering solutions to how public health, product integrity and free speech could be protected through updated regulations. ************************************************************************************ Report: Net Zero Trucks Ready in North America A new report by the Environmental Defense Fund shows manufacturers are readying to meet demand for zero-emission trucks in North America. The report finds that that manufacturers, through their investments and product plans, recognize that the future of the commercial vehicle industry is zero-emissions. The study identifies that at least 125 zero-emission truck and bus models are in production, development or demonstration. Over the past five years, sales of zero-emission commercial vehicles have shot up by nearly a factor of ten. There are models for each of the distinct major segments of the heavy-duty vehicle market, including transit and school buses, delivery vans, box trucks and combination trucks. Every major truck and bus manufacturer is developing at least one all-electric vehicle model or is part of an industry collaboration to bring zero-emission vehicles to market. Jason Mathers of EDF says, “Leading manufacturers are ready to make these trucks and fleets are eager to drive them,” adding, “Now we need bold policy to accelerate the market.” ************************************************************************************ Radio Tag Leads Researchers to Asian Giant Hornet Next Washington State Department of Agriculture entomologists, using a radio tag, have located and eradicated the first Asian giant hornet nest ever found in the United States. The Department of Agriculture’s Animal and Plant Health Inspection Service supplied the radio tag. Researchers tied the tag to a hornet, which led them to the nest in a dead tree. Two days later, a team of entomologists plugged the nest with foam, wrapped the tree in plastic, and vacuumed out the hornets. To complete the eradication, they injected carbon dioxide into the tree to kill any remaining hornets. In a recent press conference, a WSDA official noted that, given the radio tag’s strength, “I’m pretty confident as long as we can get live hornets, we can follow them back.” Now that they’ve shown that it’s possible to find and eradicate a nest, the hunt continues for any other nests that might be in the area.
| Rural Advocate News | Friday October 30, 2020 |
Washington Insider: Biotech Crop Problems National Public Radio is reporting this week about serious emerging problems with major crops that appear to be losing some of their main features. Some of the most popular products of biotechnology — corn and cotton plants that have been genetically modified to fend off insects — are no longer offering the same protection from those bugs. Scientists say that the problem results from farmers overusing the crops, and are pushing for new regulations. These crops were the original genetically modified organisms, or GMOs. They weren't the first ones invented, but they were the first to be widely embraced by farmers, starting in the late 1990s. They got their bug-resistant features from a kind of bacteria that lives in the soil, called Bacillus thuringiensis, or Bt, which is poisonous to the larval stage of some major insect pests, including the corn rootworm and cotton bollworm. Scientists inserted some of these bacterial genes into corn and cotton, and the plants themselves produced these insect-killing proteins. Bt crops brought a two-fold benefit: Cotton and corn farmers didn't need to use so many chemicals to control the bollworm and related pests after they were released, starting in 1996. "Our insecticide sprays just plummeted, and there were guys who wouldn't have to treat at all," says David Kerns, an entomologist at Texas A&M University, speaking of cotton farmers. This was also good news for the environment. The Bt proteins are toxic to a relatively small number of insects, and they're practically harmless to people and other animals. Unlike the insecticides that they replaced, they were not killing significant numbers of pollinators like bees and butterflies, or beneficial insects that prey on pests and help to keep them under control. Farmers like Jonathan Evans in North Carolina liked Bt cotton because it made farming easier. "It's always better for the plant to protect itself, than for us to have to go out and spray for the worm," he says. "You can tend a lot more acres, with a lot less equipment." Now there are new strains of bollworms, rootworms, and other pests have emerged that are able to feed on Bt plants without dying. David Kerns says some farmers are pretty angry about it. "There are words I can't use," he says, "but they want to know what the heck they're doing, paying for a technology but then still have to spray." Increasingly, they are bothered by the fact that biotech companies have deployed close to a dozen slightly different Bt genes, targeting a variety of insects. In many cases, the bugs have evolved resistance to some Bt proteins, but not others, and the prevalence of Bt-resistant insects varies from place to place. "The impact can be patchy, but when it's there, it's big," says Julie Peterson, an entomologist at the University of Nebraska. "If you're the farmer who ends up with all of their corn laying down on the ground because the roots have been completely fed on by rootworm beetles, that's a huge impact to you." Scientists have long warned about this risk. They've been engaged in a long-running argument with the companies selling Bt crops, such as Monsanto, which has been acquired by Bayer. Even before Monsanto started selling the first Bt crops, independent scientists pushed the Environmental Protection Agency to limit the amount of land that farmers could devote to Bt crops. If Bt crops were planted everywhere, the scientists argued, it would create a situation in which, if a few rare insects happened to be genetically capable of surviving Bt proteins, they would be the sole survivors, quickly mate with each other, and produce a new strain of resistant insects. Biologists call this "selection pressure." The solution, they said, was a requirement that farmers devote some of their land to non-Bt crops. This would allow plenty of non-resistant insects to survive, and make it less likely that the rare resistant insects would mate with each other. The EPA adopted this strategy, but independent scientists and biotech companies have disagreed over the years about how big these refuges need to be. In the case of some Bt crops, such as corn hybrids with genes targeting the corn rootworm, scientists have urged the EPA to require that farmers to devote at least half of their fields to non-Bt corn. The companies balked at that, since it would have limited sales of their products. They convinced the EPA that such large refuges weren't necessary. The warnings, however, turned out to be well-founded. Over the past decade, insects like the corn rootworm, the cotton bollworm, and the Western bean cutworm have become resistant to one Bt gene after the other. Now scientists, once again, are pushing for tighter government rules. "We are at an important point, where we've seen what can happen, and definitely do need to make some changes," Peterson says. The biggest proposed changes are an attempt to preserve one particular Bt gene, called called Vip3A, which has been incorporated into both corn and cotton plants. Vip3A came on the market a little later, and it is slightly different from other Bt genes, "so it still is effective against a lot of insects, and it's sort of carrying a lot of the weight right now," Peterson says. The company Syngenta sells it under the trade name Agrisure Viptera. Scientists are worried that it will soon break under the weight of overuse, especially in cotton-growing areas of the South. There, the Vip3A gene is currently deployed in both corn and cotton to fight off an insect known both as the cotton bollworm and the corn earworm. Kerns says that he and his colleagues have found a recessive genetic trait for Vip3A resistance in this insect population. If the gene is widely used, insects carrying this gene will be more likely to survive, mate, and produce fully resistant offspring. Two years ago, a group of the EPA's outside scientific advisors recommended unanimously that the agency prohibit the use of Vip3A in corn in the South. This would preserve its effectiveness in cotton, they said, where it's much more valuable. The company that owns the Vip3A gene — Syngenta — argued that such a prohibition wasn't necessary or fair. In its latest draft document on the issue, the EPA backed away from the idea. Instead, the agency proposed a variety of other measures. They include a requirement that companies plant and monitor "sentinel plots" of Bt crops that could provide early warning of insect resistance, and also that companies force farmers to abide by existing requirements to plant non-Bt refuges. Studies have found many farmers ignoring these rules. Peterson says that if current farming practices don't change, it's possible that all of the Bt genes currently on the market will stop working reliably within a decade. So, we will see. Clearly the scientists at USDA and the genetic firms who market these products are well of the problems that are emerging and likely have strategies to help customers deal with them, and have many experts work.
| Rural Advocate News | Friday October 30, 2020 |
USDA World Board Leader Offers Defense Of China Corn Import Figure USDA's forecast that China's 2020/21 corn imports from all sources will be at 7 million metric tons has prompted many questions about the forecast in no small part because U.S. export commitments for corn to China alone stood at 10.5 million metric tons as of October 15. "Keep in mind that export sales ... do get canceled at times," World Ag Outlook Board (WAOB) Chairman Mark Jekanowski said during a virtual USDA data users meeting. China's tariff rate quota for corn was maintained at 7.2 mmt for calendar 2021, but expectations are that China's government will issue additional import quotas or take other actions to bring more corn in than the announced TRQ level in 2021. And the fact there has been no formal announcement factors into the WAOB decision, Jekanowski said. “One of the things we try not to do is forecast changes in policy, including changes in policy by foreign countries,” he noted. Chinese corn prices have hit lofty levels as demand for corn is high in the country as they seek to rebuild their hog herd that was decimated by African swine fever (ASF) and the country has sought to dramatically reduce the use of swill to feed hogs.
| Rural Advocate News | Friday October 30, 2020 |
Ethanol Groups Ask Federal Court To Force EPA To Disclose Refiner Exemptions Growth Energy and the Renewable Fuels Association (RFA) asked the United States District Court for the District of Columbia to order the Environmental Protection Agency (EPA) to respond to several Freedom of Information Act (FOIA) requests filed by the biofuels industry regarding the small refinery exemption (SRE) program and EPA's escalation in granting SREs in recent years. Growth Energy CEO Emily Skor and RFA president and CEO Geoff Cooper said in a news release, “For the last several years, biofuels interests have pleaded with EPA to lift the veil of secrecy that it has held over the issuance of small refinery exemptions under the Renewable Fuel Standard. These clandestine agency actions have destabilized markets and allowed numerous refineries to avoid their RFS compliance obligations at the expense of renewable fuel producers and supporters, including America's farmers.” The official noted that, “Fundamentally, this request is about fairness and transparency in government. If an agency decides to relieve a refinery from the obligations Congress imposed under the Clean Air Act or any federal law, it should be done in the public view.”
| Rural Advocate News | Friday October 30, 2020 |
Friday Watch List Markets Friday's reports include the U.S. employment cost index for the third quarter and U.S. personal incomes for September, both at 7:30 a.m. CDT. The University of Michigan's consumer sentiment index for October is due out at 9 a.m. CDT. Traders will continue to pay attention to the latest weather forecasts and any export sales news. Weather Dry conditions will cover all primary crop areas Friday, offering improved harvest and field work conditions. Delays are still likely in the eastern Midwest and Delta following rain during the past few days. Temperatures will remain cool for the season in the eastern Midwest with moderating trends elsewhere
| Rural Advocate News | Thursday October 29, 2020 |
Ethanol Groups Seek Partial Summary Judgment in FOIA Lawsuit Growth Energy and the Renewable Fuels Association this week filed a motion for partial summary judgment in a Freedom of Information Act lawsuit regarding Small Refinery Exemptions. The motion follows the Environmental Protection Agency’s failure to adequately respond to several FOIA requests, according to the groups. Growth Energy and the Renewable Fuels Association asked a federal district court to order EPA to make public at least the most basic information about the exemptions. The two groups say EPA should not withhold the name of the company submitting an application for an SRE nor the name and location of the refinery for which relief is requested. Additionally, they ask that EPA immediately produce the information that was unlawfully withheld for Renewable Fuel Standard compliance years 2015, 2016 and 2017. Finally, the groups say the EPA should not withhold any of the five data elements identified in the proposed Renewables Enhancement and Growth Support rule. ************************************************************************************ EPA Considering E15 Label Changes at Gas Pumps The Environmental Protection Agency is mulling over a potential label change for E15 at gas pumps. The possible move is seen as a way to appease the biofuel industry’s concerns that current labels discourage use of the fuel, according to a report by Reuters. Current labeling warns of possible engine damage to older vehicles. An announcement could come soon, but there’s no detail yet on how the Trump Administration might alter the labeling. President Donald Trump did say via Twitter last month that he would allow states to permit fuel retailers to use their current pumps to sell E15. Expanding the market for E15 is a policy goal for farmers and the ethanol industry, including calls for the national standard to move from E10 to E15. Going from an E10 blend to an E15 blend would increase ethanol production by seven billion gallons and corn demand by over two billion bushels a year, according to Growth Energy. ************************************************************************************ Dicamba Decision Provides Certainty to Ag Retailers, Farmers The Agricultural Retailers Association says the Environmental Protection Agency offers certainty to retailers and farmers with the recent five-year registrations for dicamba herbicides. ARA President and CEO Daren Coppock says, “Now farmers and their retailers can make firmer plans for the next five years with this critical question answered.” American Soybean Association President Bill Gordon thanked the EPA in a statement for “the many steps and time invested in coming to this decision.” EPA Administrator Andrew Wheeler late Tuesday announced the registration for three dicamba herbicides, Bayer’s ExtendiMax, BASF’s Engenia and Syngenta’s Tavium. The announcement follows a court case in June that invalidated the registrations for ExtendiMax, Engenia and Corteva’s FeXapan. The registration does include a cutoff date for over the top applications for soybeans of June 30 and cotton of July 30. Gordon of ASA points out that dicamba is “one of many tools integral to the success” of farmers facing different crop production challenges. ************************************************************************************ Consumers Are Stocking up Again Amid COVID, Political Unrest Fears Americans are again stocking up the pantry over supply chain, coronavirus and political unrest fears. In a report from industry publication Progressive Grocer, research shows more than half of Americans say they're stockpiling groceries or plan to stockpile. The research cites worries about supply chain disruptions due to COVID-19 surges and political unrest amid the presidential election. Industry leaders are urging retailers to prepare for a rise in shoppers. Walmart CEO Doug McMIlion says, “It will be choppy for months to come as we all deal with the volatility and as things change.” Roughly 52 percent of Americans plan to stockpile this fall, according to data from the Sports and Leisure Research Group. Additionally, 38 percent of consumers stocked up at the beginning of the pandemic and would do so again with a new shutdown, while 15 percent of consumers didn't stock up earlier this year, but would do so if there's a new shutdown. ************************************************************************************ USDA Announces More Rural Community and Broadband Investments Another day closer to the election brings another investment announcement in rural communities by the Department of Agriculture. In a recent string of investments, USDA Wednesday announced another $871 million for rural communities. This time, USDA is funding 256 projects through the Community Facilities Direct Loan and Grant Program. The investments will assist communities in building or upgrading schools, libraries, clinics and public safety facilities. The funds will benefit 3.5 million residents in 43 states and Guam. Over the last few weeks, USDA has announced investments in rural communities near-daily, including millions for rural broadband. USDA Wednesday also announced a $1.8 million investment for rural broadband in Iowa, and $5 million for areas in rural Kentucky. That announcement is part of the $550 million allocated by Congress for the second round of the ReConnect Program. Both the Community Facilities Program and the Reconnect Program are administered by USDA Rural Development. ************************************************************************************ NCBA Moves 2021 Convention to August The National Cattlemen’s Beef Association is the latest ag organization to change the 2021 meeting schedule due to COVID-19. In a letter to event participants, the organization announced the Cattle Industry Convention will move to August 2021, delayed from February. NCBA CEO Colin Woodall says, “the limits on the number of people who can gather at an event in Nashville and the travel restrictions facing many trade show exhibitors, makes it impossible for us to put on the world-class event.” Originally scheduled for February 3-5, the convention and trade show will now take place August 10-12, 2021. NCBA will hold some of its traditional business meetings in the January or February timeframe, in accordance with the association’s bylaws. The event is one of many originally scheduled for early 2021 that is changing the meeting landscape for agriculture. The American Farm Bureau Federation earlier this month announced its annual convention will be virtual, planned for January 10-13, 2021.
| Rural Advocate News | Thursday October 29, 2020 |
Washington Insider: Keeping USA Manufacturing Jobs The Washington Post this week is highly critical of Trump administration efforts to “jawbone” companies into producing entirely in the U.S. For example, it leaned heavily on Carrier international when it was planning invest in Mexico, but just four months after Carrier agreed to keep some jobs in Indianapolis, it broke ground on a new manufacturing facility in China. The $95 million factory would produce compressors and light commercial systems for sale in China and the region. By May, Carrier had informed Indiana officials that it was eliminating 632 jobs from the Indianapolis plant, prompting an angry President Trump to call Carrier to complain. But even as the administration argued for companies to stay put, other elements of its trade policies were putting them at a disadvantage. In 2018, President Trump imposed tariffs on Chinese products, intended to punish Beijing for pilfering foreign companies' trade secrets and intellectual property. But the import taxes also raised Carrier's production costs, so in December 2018, the company requested an exclusion from the 25 percent fee for a Chinese-made electrical motor it used in its residential gas furnaces, warning of “significant price increases for consumers.” In May 2019, the Office of the U.S. Trade Representative denied the request, saying that Carrier had not proved that the motor was available only from China. Still, business was good. Carrier last year recalled more than 100 workers who had been let go and morale, which had crumbled amid the outsourcing talk, rebounded. Some of the work that left Indiana ended up in Monterrey, Mexico's manufacturing heartland, in a blue-and-white building Carrier calls Plant A. Both the U.S. and Mexican flags fly out front. Just one of several local Carrier production sites, the facility in the working-class Santa Catarina neighborhood can be a refuge from the world beyond its walls. When the president first attacked Carrier in 2016, workers in Mexico here got nervous about what his outburst might mean for them. But plant managers reassured them that nothing would change. For example, one worker, Omar Mendoza, 28, told the Post he had worked for Carrier for three years as a junior quality-control specialist. He is studying English in hopes of earning a promotion. Carrier is “above the average” for employers in Monterrey, he said. “The company treats me well and in general they give the workers many benefits, like scholarships and subsidized lunch,” he said. The Post said that local workers in Mexico tend to shrug at U.S. anger over outsourcing, saying Mexican workers in the country's more developed areas were also vulnerable to low-wage competition, from migrants from southern Mexico or Central America. “That's the way it is,” one told the Post. The Post said that Carrier's labor costs in Mexico are about 80 percent less than in Indiana — and show little sign of rising. From 1997 to 2016, Mexico's hourly compensation costs — salary, social insurance and labor taxes — in the manufacturing sector held steady at about one-tenth the U.S. figure, according to a Conference Board database. That's drawn Carrier and most of its competitors, including Lenox, Trane, Rheem and York, to Mexico along with their suppliers. There is no precise estimate available for the number of U.S. jobs that have moved offshore in the free-trade era. Up to 5 million U.S. manufacturing jobs disappeared between 1997 and 2018, according Economic Policy Institute economists. But that figure includes the effects of automation and business failures as well as trade. The U.S. government has formally certified that 202,543 jobs have been offshored during the current administration, according to a recent Public Citizen analysis of Labor Department records that the group says represents an undercount. The loss of U.S. jobs appears to have ebbed since the 2000s, when companies took advantage of China's entry into the World Trade Organization and the earlier creation of a unified North American trading bloc to ship millions of jobs to lower-wage venues. Hopes of stemming the flow of U.S. jobs to Mexico now rest with labor overhauls instituted by the government of President Andres Manuel Lopez Obrador as well as the terms of Trump's replacement for the 1994 North American Free Trade Agreement. The U.S.-Mexico-Canada Agreement (USMCA) is designed to tilt investment decisions toward the United States by requiring a set percentage of auto manufacturing to be performed by workers making an hourly wage of at least $16. The new accord also includes provisions to permit collective bargaining and to close loopholes allowing Mexican employers to profit by mistreating their workers. Labor advocates say that the Trump administration deserves credit for making the USMCA more worker friendly, including by eliminating a dispute settlement system in NAFTA that allowed corporations to sidestep corrupt local courts, thus making Mexico more attractive as an investment venue. On paper, the Mexican overhauls would allow workers to organize unions outside the company-controlled “white” unions that exist to guarantee big employers labor peace. Even before the pandemic slowed government operations, implementation was behind schedule, according to Gladys Cisneros, Mexico program director for Solidarity Center, an AFL-CIO affiliate. “So far, on the ground, nothing is different for Mexican workers,” Cisneros said. Robert Lighthizer, the president's chief trade negotiator, told the House Ways and Means Committee in June that “labor enforcement in Mexico is going to be a problem.” And Richard Trumka, the president of the AFL-CIO, said last month that the labor federation already is preparing a list of complaints. Even if the overhauls are implemented, they are unlikely to have a dramatic impact. Roughly 1 of every 7 Mexican workers belongs to a union. The agreement would increase their wages by 17%, producing only a “modest” effect on the U.S. economy, according to the International Trade Commission. Few in the Mexican business community anticipate a major shift of jobs back to the United States. “What is already in Mexico will stay. I don't see it going back,” said Armando Tamez, chief executive of Nemak, a parts supplier to global automakers. The moribund Mexican economy also keeps a lid on wages. José Valdez, CEO of Alpek, one of the largest petrochemical producers in the Americas, said wages can increase only as fast as productivity growth. If government policy tries to force them higher, it will encourage companies to automate instead. “Whoever tells you this is a revolution has to be a Trump supporter or a political guy,” said Valdez. “No businessman would tell you that. We don't see anything changing in reality.” Roberto Russildi, Nuevo Leon state's secretary of economy and labor, says his sales pitch to potential investors emphasizes that “in 21 years, we've had no strikes or major problems” with organized labor. That's one of the reasons Mexico remains attractive as a production center, according to Ernesto Velarde-Danache, a prominent attorney who handles labor relations for multinational corporations. “The reforms are forcing the existing unions to demand better pay. So little by little, things are going to improve. But I don't think it will be at a pace that will be noticeable,” he said. “I don't see Mexico in the next 25 years getting close to the U.S.” So, we will see. Certainly, U.S. trade policy, along with other key policy efforts should be watched closely in the intense policy and budget debates now underway and expected for the coming months, Washington Insider believes.
| Rural Advocate News | Thursday October 29, 2020 |
First Commercial Shipment of US Rice Unloads In China A shipment of premium, medium grain Calrose rice grown in California and sold to China by ADM Rice was unloaded in China Tuesday (October 27), the first commercial sale of U.S. rice to China, according to USA Rice. Under the terms of the phytosanitary agreement reached between the U.S. and China, all rice entering China must be milled and packaged according to specifications and originate from a pre-approved export facility, the group noted. There are currently 32 approved export facilities spread across the six major rice-growing states. U.S. rice entering China under their tariff rate quota faces a 1% in-quota duty in addition to a 25% retaliatory duty, but the group noted, “In most cases, importers in China may apply to waive the retaliatory duty.” USDA's Weekly Export Sales report recently reported the shipment of 20 metric tons of U.S. rice to China that was purchased earlier this year.
| Rural Advocate News | Thursday October 29, 2020 |
EPA Announces Actions On Dicamba Registrations EPA announces new five-year registrations for two dicamba products and extended the registration of one dicamba product, putting additional control measures in place for their use. New registrations for two “over-the-top” (OTT) dicamba products—XtendiMax with VaporGrip Technology and Engenia Herbicide—and extended the registration for an additional OTT dicamba product—Tavium Plus VaporGrip Technology—were announced by EPA Administrator Andrew Wheeler at a Georgia farm. These registrations are only for use on dicamba-tolerant (DT) cotton and soybeans and will expire in 2025, the agency said. EPA also put new control measures in place to address drift of the herbicide, including that a pH-buffering agency be tank mixed with OTT products, a downwind buffer of 240 feet and 310 feet will be required in areas where listed species are located, OTT applications will be prohibited after June 30 on soybeans and July 30 on cotton and there will be simplified label and use directions. The 2020 registration labels also offer new flexibilities for growers and states, including the use of certain hooded sprayers to reduce the downwind spray buffer. EPA said they believe the action addresses issues raised in the June 2020 Ninth Circuit Court of Appeals ruling and the control measures now requested means the registrations “do not affect or are not likely to adversely affect endangered or threatened species. Some environmental groups decried the EPA action and it is not clear if they will seek to challenge this latest decision in court.
| Rural Advocate News | Thursday October 29, 2020 |
Thursday Watch List Markets After Wednesday's broad, commodity-based selling related to coronavirus concerns, we have to say the daily U.S. infection count will probably get traders attention Thursday. At 7:30 a.m. CDT, USDA will release its weekly export sales report, the U.S. Labor Department will release weekly jobless claims, the Commerce Department will report on third-quarter GDP and the U.S. Drought Monitor will be updated. The International Grains Council will issue its monthly Grain Market Report Thursday morning and at 9:30 a.m. CDT, the Energy Department will report on natural gas inventory. Weather Moderate to heavy rain is in store for the eastern Midwest, southeastern Plains and Southeast Thursday, causing harvest disruption along with flooding. Damaging tropical storm-force winds are also in store in the Southeast. Other crop areas will be dry with improving harvest conditions
| Rural Advocate News | Wednesday October 28, 2020 |
EPA Extends Dicamba Registrations The Environmental Protection Agency late Tuesday announced five-year registrations for two dicamba products and the extension of a third. EPA Administrator Andrew Wheeler says the registrations include new control measures to ensure the products can be used effectively while protecting the environment, including non-target plants and other crops not tolerant to dicamba. Bayer’s ExtendiMax and BASF’s Engenia received five-year registrations, while Syngenta’s Tavium registration was extended. Corteva’s FeXapan was not included in the announcement. A federal court in June tossed out the registrations for ExtendiMax, Engenia and FeXapan, but did not include Tavium. The registrations feature new control measures, including requiring a volatility reduction agent and specific downwind buffers. The federal regulation prohibits over the top application of dicamba on soybeans after June 30 and cotton after July 30. Farm groups have called on the EPA to reregister the products for 2021. However, a staffer at the Center for Food Safety via Twitter called the action "rushed before the election, as a political prop." American Farm Bureau President Zippy Duvall and National Cotton Council Chairman Kent Fountain joined Wheeler for the announcement in Georgia. ************************************************************************************ Wheeler Calls on DOJ to Investigate Environmental Organizations Funding Environmental Protection Agency Administrator Andrew Wheeler wants the Department of Justice to investigate funding for environmental groups. In a letter to the Justice Department, Wheeler cited concerns the groups were receiving secret funding from foreign countries, specifically China and Russia. The action follows a previous letter by Representative Lance Gooden, a Texas Republican. Gooden requested the investigation earlier this month. Referring to China, Gooden states, “We have reason to believe they are funneling money to certain green groups to influence American foreign policy and our elections.” In Wheeler’s letter, he says foreign investments are not against the law, but says, “foreign influence should not be covert.” Wheeler did not name specific environmental groups. However, Gooden names The Sea Change Foundation, the Sierra Club and the Sunrise Movement in his letter to Wheeler. Administrator Wheeler referred the issue to DOJ, stating, “The DOJ can then determine what appropriate steps to take, if any.” ************************************************************************************ Ethanol Groups Submit Comments on Flex Fuel Vehicles Ethanol Groups this week submitted comments to the Environmental Protection Agency regarding emissions standard compliance calculations for Flex Fuel vehicles. The Renewable Fuels Association supports the EPA approach to “maintaining some level of certainty for automakers in the absence of future guidance.” RFA also called on the EPA to provide a long-term floor and "more robust" E85 usage factors for future model years, given expected growth and the benefits provided by ethanol flex fuels. RFA Vice President for Regulatory Affairs states, “it is clear that manufacturers will hesitate to invest in certain technologies, like FFVs, unless there is some assurance that those vehicles technologies will help enable CAFE and GHG standard compliance over multiple model years." Growth Energy's comments to EPA state recent trends in government and private investment in biofuels infrastructure, and updated data on E85 availability all lead to growth in higher biofuel blends. Growth Energy says the EPA should "provide appropriate, immediate credit to automakers to continue to produce flex-fuel vehicles to run on these higher biofuel blends." ************************************************************************************ Alltech Launches Survey on Gender Equality Within The Food And Agriculture Alltech Tuesday announced its support of the second annual Women in Food and Ag survey. The survey aims to collect feedback that empowers the agri-food industry to create a more equitable environment. The 2019 Women in Food and Ag survey results revealed specific barriers for women in agriculture and a gap between female and male perceptions but reflected an optimistic outlook. As 2020 ushered in unprecedented challenges for agriculture, new questions have been added to the survey to gauge potential inequalities uncovered by COVID-19. Alltech CEO Mark Lyons says, “Human ingenuity is our Earth’s most valuable resource, and a diverse workforce is essential to building a more sustainable future.” This initiative reflects Alltech’s commitment to the U.N. Global Compact and the U.N. Sustainable Development Goal related to gender equality. Women and men in all sectors of the food supply chain are encouraged to contribute to the survey. The survey results will be published in January 2020. The survey is available here: https://www.research.net/r/WFAsurvey2020?lang=en ************************************************************************************ USDA Reports Top Ten Pumpkin Producing States Pumpkins are one of the most famous symbols of fall, and the Department of Agriculture is highlighting the top ten pumpkin producing states. Just in time before Halloween, in a report by the Economic Research Service, USDA notes production is widely dispersed throughout the United States, with all States producing some pumpkins. However, about 62 percent of pumpkin acres were cultivated in only ten States. By acreage and by weight, Illinois is consistently the Nation's largest pumpkin producer. Unlike all other States, most Illinois pumpkins are used for pie filling and other processed foods. The lower price associated with pumpkins destined for further processing explains why Illinois was second in the value of pumpkin production at $17.1 million in 2019. Pumpkins from the other states surveyed annually by USDA's National Agricultural Statistics Service were primarily intended for decorative or carving use. California leads the Nation in terms of value of production, at $22.8 million. ************************************************************************************ USDA Announces $891 Million Investment in Rural Water and Wastewater Infrastructure The Department of Agriculture Tuesday announced an $891 million investment in rural drinking water and wastewater infrastructure in 43 states. Funding 220 projects, the investment will help improve rural water infrastructure for 787,000 residents. The projects are being funded through the Water and Waste Disposal Loan and Grant Program. USDA Deputy Under Secretary for Rural Development Bette Brand says, "Upgrading water infrastructure provides a path to economic growth and protects the health and safety of people who live and work in rural areas." The Water and Waste Disposal Loan and Grant Program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and stormwater drainage to households and businesses in eligible rural areas with populations of 10,000 or less. Meanwhile, USDA Rural Development provides loans and grants to expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements, among other things, in rural communities.
| Rural Advocate News | Wednesday October 28, 2020 |
Washington Insider: Dealing With the Future China In a long news article this week, Bloomberg argues that no foreign policy issue will plague the next winner of the White House more than China. Already a debate is raging among China watchers over what Washington's next steps should be. Some favor a “reset” to tamp down tensions and return to more constructive diplomacy. Others are fearful of that and argue the U.S. mustn't stray from the hard line. Bloomberg describes a somewhat different reality. As the U.S. struggles to contain the coronavirus outbreak and restart its economy, China appears to be gaining strength. Its gross domestic product expanded 4.9% in the third quarter, an “astounding rebound in a world still mostly mired in a pandemic-induced paralysis.” In its own foreign policy, Beijing has barely flinched under U.S. pressure and instead has become more assertive — enhancing its influence in global institutions such as the World Health Organization, crushing the pro-democracy movement in Hong Kong, turning up the heat on Taiwan, and brawling (literally) with India along their disputed border. In addition, Bloomberg thinks western policies are based on a serious misapprehension of the country's past largely because “Americans encountered China at one of the darkest points in its history and, as a result, hold a “skewed” view of China today. The report points out that China has consistently been one of the world's largest economies over the past 2,000 years—and still was well into the 19th century. Rather than something startling, China's growth into the world's second-largest economy is “a return to the norm,” it says. Centuries before Vasco da Gama felt his way to India in 1498, China was the beating heart of a global economic system, with trade links stretching from South China, across Southeast Asia and the Indian Ocean, to the Persian Gulf and Red Sea. It also argues that China has “risen” many times in the past—and its latest period of weakness, when it was subordinated to the Western world, hasn't been all that long by its historical standards. It may be more realistic to describe the country's 21st century ascent is as a “restoration,” not so unlike the several imperial restorations of the past, the report says. Such a view would shift the way the West contends with China as it works to resurrect some of its political and economic foreign policy precepts. It also could mean acceptance of the reality that China wants to be and most likely will be a global superpower. An approach meant to “keep China down,” as they see it, likely will generate conflict but few tangible results. A better route may be to allow China more diplomatic space in areas where it doesn't fundamentally damage U.S. interests. Rather than contesting Beijing on everything, if China wants to lose money and alienate other governments building uneconomic railways and roads, the West might “wish it the best,” Bloomberg thinks Still, today's China does present a threat in its expectation that it will be the dominant power in East Asia — a region that is too vital for the West to concede — so the U.S. will need to protect its core interests there. This will require “deft diplomacy through international organizations or alliances rather than vitriol-filled, one-on-one slugfests,” Bloomberg thinks. It also will require the organization of the contending parties in Southeast Asia into a collective to prod Beijing to negotiate. And, it may require cooperation with the Association of Southeast Asian Nations as well as working within the World Trade Organization to influence China, rather than outside of it. In fact, a U.S. policy that recognizes Chinese history doesn't equal a soft one. The U.S. should still target China's bad practices — more carefully but also more forcefully. Chinese companies and officials with proven records of stealing technology or participating in human-rights abuses should be sanctioned. Duties ought to be slapped on Chinese exports that are unduly subsidized by the state and, where possible, policies should be adopted to deal with the risks China presents without making them blatantly anti-China. However, Bloomberg does not think that contesting international outrages means a constant fight with “China,” it will need to contend with the Chinese Communist Party — which asserts that the two are equivalent, but they aren't. The scholar-statesmen who managed imperial China, steeped in Confucianism, believed good government was founded on benevolence, not brutality. Chinese history's most tyrannical rulers were usually looked upon with scorn by the Confucians. The report also concludes that just because China has restored itself in the past doesn't automatically mean it will now. Contemporary China is still a middle-income country lacking key technologies and plagued by an artificially aging population. It has a long way to go to become a global superpower. Yet from a policy standpoint, it's wiser to recognize the historical trends that propel it forward and rejigger the world order to address Chinese aspirations--though not its autocracy. It won't be easy. Bloomberg says, but neither is denying history. So, we will see. This is a somewhat dark period with widely and deeply held skepticism regarding trade. However, since access to growing markets will require looking overseas expanding trade will continue to be of great value to many sectors of the economy. Thus the international relationships necessary to build and expand US global market access should be re-examined and revitalized, a process producers should watch closely, Washington Insider believes.
| Rural Advocate News | Wednesday October 28, 2020 |
EU Cleared To Hit US With Retaliation Over Boeing Subsidies The WTO Dispute Settlement Body (DSB) Monday okayed the European Union (EU) request to hit $3.99 billion in U.S. goods with tariffs over subsidies paid to Boeing that were found to run counter to U.S. WTO commitments. However, EU Trade Commissioner Valdis Dombrovskis said he would seek to negotiate a settlement with the U.S., according to a statement. The formal approval by the Dispute Settlement Body of the WTO “confirms the EU's right to impose countermeasures for illegal subsidies to the American aircraft maker, Boeing,” he said. “The European Commission is preparing the countermeasures, in close consultation with our Member States. As I have made clear all along, our preferred outcome is a negotiated settlement with the U.S.” The U.S. has offered a proposal to the EU to resolve the Boeing and Airbus disputes that have run for some 16 years, but indications are the EU rejected that US offer. The U.S. side indicated at the WTO session that they also want a negotiated settlement, indicating one could come in a “short period of time.”
| Rural Advocate News | Wednesday October 28, 2020 |
CFAP 2 Payments Top $7.5 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) have reached $7.6 billion as of October 25, including $3.9 billion in acreage-based payments, $2.1 billion for livestock, $843.9 million for sales commodities, $790.1 million for dairy, and $17.8 million for eggs/broilers. By commodity, the payments are led by $2.2 billion for corn, $1.7 billion for cattle. $832.2 million for soybeans, $793 million for sales commodities, $790.1 million for milk, $391.3 million for wheat, $377.9 million for hogs/pigs and $169.6 million for upland cotton. Payouts have reached $500 million or more in five states—Iowa ($776.9 million), Nebraska ($517.9 million), Minnesota ($510.2 million) and Illinois ($505.7 million). CFAP 1 payments stand at $10.3 billion, including $5.0 billion for livestock, $2.6 billion for non-specialty crops, $1.8 billion for dairy, $802.6 million for specialty crops and $112.8 million for aqua nursery flora.
| Rural Advocate News | Wednesday October 28, 2020 |
Wednesday Watch List Markets Traders will check the latest weather forecasts for North and South America and the Black Sea region and also pause at 8 a.m. CDT to see if USDA has an export sale announcement. At 9:30 a.m., the U.S. Energy Department releases its weekly energy inventory report, which includes last week's ethanol production. Weather Rain, ice and snow are in store from the Texas Panhandle to the Delta and Deep South Wednesday. This moisture is unfavorable for cotton and will disrupt harvest, while improving conditions for winter wheat. Other crop areas will be drier with improved harvest conditions following weekend rain and snow.
| Rural Advocate News | Tuesday October 27, 2020 |
USDA: More than $7 Billion Paid in Second Round of CFAP The Department of Agriculture has paid more than $7 billion in assistance to farmers as part of round two of the Coronavirus Food Assistance Program. Known as CFAP 2, the program provides farmers with financial aid to help absorb some of the increased marketing costs associated with the COVID-19 pandemic. Agriculture Secretary Sonny Perdue says, “the funding builds upon the over $10 billion disbursed under the first round.” Since CFAP 2 enrollment began in September, the Farm Service Agency has approved more than 443,000 applications. The top five states for payments are Iowa, Nebraska, Minnesota, Illinois and Kansas. Through CFAP 2, USDA is making available up to $14 billion for farmers and ranchers. CFAP 2 is a separate program from the first round of funding. Farmers and ranchers who participated in the original program are not automatically enrolled and must complete a new application for the second round of funding. FSA will accept applications through December 11, 2020. ************************************************************************************ China Has Purchased 71 Percent of Its Phase One Target The Department of Agriculture late last week announced China has followed through on 71 percent of its Phase One Economic and trade Agreement commitments. USDA and the U.S. Trade Representative’s Office says that China has purchased over $23 billion in agricultural products to date. Outstanding sales of U.S. corn to China are at an all-time high of 8.7 million tons, and U.S. soybeans sales for marketing year 2021 are off to the strongest start in history. U.S. exports of sorghum to China from January to August 2020 totaled $617 million, up from $561 million for the same period in 2017. U.S. pork exports to China hit a record in just the first five months of 2020, and beef exports to China through August are already more than triple the total for 2017. USDA expects 2020 sales to China to hit record or near-record levels for many U.S. agricultural products, including pet food, alfalfa hay, pecans, peanuts, and prepared foods. ************************************************************************************ Organic Fresh Produce Sales Continue Double-Digit Growth Organic fresh produce in the third quarter of 2020 saw a continuation of trends established in March of this year, with elevated sales across the entire category. A report by the Organic Produce Network shows fresh produce sales topped $2.2 billion for the quarter and accounted for 12 percent of all produce sales, compared to a dollar share of 9.8 percent in the second quarter. Organic Produce Network CEO Matt Seeley says, “sales of organic fresh produce show no signs of slowing and continue to be a major growth opportunity for retailers across the country.” Packaged salads, strawberries and herbs generated the highest growth in organic dollars in the third quarter. Bananas continued to be the volume leader of organic produce offerings, generating 18 percent of total volume and increasing by 8.3 percent from the previous year. For the first half of 2020, organic fresh produce sales were up 11 percent in dollar growth and 13 percent in volume compared to last year. ************************************************************************************ USDA Releases Cattle On Feed Report The latest Cattle on Feed report shows higher cattle inventories as of October 1, 2020. The Department of Agriculture released the monthly report Friday. USDA reported cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head. The inventory was four percent above October 1, 2019. This is the highest October 1 inventory since the series began in 1996. Placements in feedlots during September totaled 2.23 million head, six percent above 2019. In an analysis of the report, American Farm Bureau Federation economist Michael Nepveux says, “After strong impacts from the pandemic in April and May, the number of cattle on feed has largely followed seasonal patterns.” However, the impacts of the pandemic are still contributing to market uncertainty. Nepveux adds, “It will be interesting to see how the recession eventually impacts beef demand, as recessions tend to not be kind to this particular animal protein.” ************************************************************************************ Farmers National Company Reports Higher Land Prices this Fall Farmers National Company reports buyers are willing to bid up for good quality cropland in the heart of the Midwest this fall, citing two recent sales. In central Iowa, two separate 120-acre tracts brought $13,700 and $13,400 per tillable acre. Meanwhile, a quarter section in central Illinois sold for $13,500 per tillable acre. Randy Dickhut of Farmers National Company says, "these are definitely strong sales with prices up from where they have been the past few years." He says farmers continue to be active bidders for the good cropland that comes up for sale in their areas as they add to their operations. Local investors who are either diversifying their asset portfolio or doing a 1031 tax-deferred exchange are also active bidders in many land sales. Dickhut adds the lack of safe, alternative investments that return more than farmland, such as Treasury bonds, is also another factor in the demand for land. ************************************************************************************ Lawsuit Claims EPA Approved “Dangerous” Fungicide The Center for Food Safety and the Center for Biological Diversity are challenging the Environmental Protection Agency's approval of a new fungicide. The EPA approved the new fungicide, inpyrfluxam (in-PEER-flux-um), in August. The two groups in a lawsuit claim the approval came "despite compelling research showing it to be very highly toxic to fish, including endangered salmon and steelhead." Additionally, the lawsuit claims the fungicide poses substantial risks to large birds, including whooping cranes. The EPA approved the fungicide for use on some of the most widely grown U.S. crops, including corn, soy, grains, beans, sugar beets, apples and peanuts. The fungicide was approved for foliar and seed treatment uses to protect against Rhizoctonia species causing seed decay, seedling damping‐off, and root rot. The Center for Biological Diversity says, “The EPA broke the law when it failed to make sure this highly toxic fungicide won't drive endangered species closer to extinction, and we're going to hold the agency accountable."
| Rural Advocate News | Tuesday October 27, 2020 |
Washington Insider: Global Economic Temperature Check Ahead Bloomberg commented this week on expectations for three Group of Seven interest-rate decisions along with data accounting for 40% of global gross domestic product. It expects these will provide a “temperature check for the crisis-disfigured world economy” this week during its most traumatic year for generations. While the U.S. and euro regions likely have achieved unprecedented growth rebounds in the third quarter, that will only serve to underscore the volatility and disruption inflicted by the coronavirus – as opposed to any meaningful repair to the damage caused, Bloomberg says. Concurrently, the central banks of Canada, Japan and the euro area are all likely to signal renewed anxiety at the persistence of the disease and its lingering impact at a time of resurgent infections in Europe. The cumulative snapshot of growth and policy on three continents will form a definitive backdrop on the state of the world economy before the U.S. election the following week, Bloomberg says. In the aftermath of that vote on Nov. 3, decisions by the Federal Reserve and the Bank of England will then complete the latest sweep of G-7 monetary authorities determining borrowing costs and stimulus across the bloc. Bloomberg's view is that “the week ahead is set to bring good news about the past, but bad news about the future.” In the U.S., third quarter GDP will show a record expansion, but “with stimulus talks stalled and the virus case count rising, the outlook is darkening.” In Europe, the report says the group expects ECB President Christine Lagarde to acknowledge intensifying risks to the recovery and signal further support ahead.” Bloomberg also notes that the central bank in Ottawa has made a long-term commitment to keep interest rates at historic lows and will use the upcoming rate decision to reinforce that guidance. That likely means holding the benchmark interest rate at 0.25%, reiterating that it will likely stay there for years and pledging to continue buying government bonds to support that policy. Yet, with growing concern that the Bank of Canada could end up cornering the market for Canadian debt, officials are under pressure to provide some details on how it could temper its reliance on asset purchases without tightening policy. With regard to developments in Asia, the report says that Bank of Japan officials are widely expected to hold fire on Thursday as governor Haruhiko Kuroda reiterates the need to monitor the effectiveness of the bank's virus-response measures and his resolve to take swift action if needed. The Bank of Japan will also release updated growth and inflation forecasts that will continue to show prices falling in the current fiscal year. The BOJ's focus on providing funding for struggling firms and calming markets through asset buying has put its inflation campaign on the back burner for now. Policy makers are likely to argue that with only minor tweaks to the projections, the base scenario for the economy to gradually pick up remains unchanged. Still, the figures will again raise the question of what else the central bank can do to reach its distant 2% inflation target over the long run. European Central Bank (ECB) policy makers also will meet on Thursday when discussion will be dominated by concerns regarding impacts that the sudden resurgence of the pandemic could have on the recovery – and whether more stimulus is already needed. What ECB President Christine Lagarde described as a strong rebound over the summer months now risks turning into a double-dip recession after countries from Ireland to France and Germany imposed new restrictions to stop the spike in virus infections. Most economists expect the ECB to keep its 1.35 trillion euro emergency bond-buying program unchanged for now, with roughly half of the money from the package still waiting to be spent. Officials also have reasons to wait until December to unveil additional stimulus when new forecasts could allow them to better calibrate the response. The expectations are that the program will get additional 500 billion euros and be extended until the end of 2021. Overall, Bloomberg said its expectations for the evaluation of the U.S. economy likely will conclude that it probably charged ahead in the third quarter at the fastest pace in official data back to the 1940s as pandemic restrictions were lifted and that GDP increased at a 32% annualized rate, with a record gain in consumer spending. However, the devastation wrought by the coronavirus is expected to linger: total inflation-adjusted economic output is seen remaining below the $19.3 trillion at the end of 2019. The euro-area economy probably expanded more modestly during the quarter – but still by a record. The 9% increase seen by economists likely will be insufficient to erase the contraction of the first half of the year. This could mean that the new data on Friday are overshadowed by negative economic confidence readings, falling consumer prices and forecasts of stagnation in the current three-month period because of a resurgence in coronavirus cases. So, we will see. The overall picture includes most of the global economy working to confront the impacts of the coronavirus as uncertainty grows as to how best to proceed. These are trends and challenges for all governments and should be watched closely as they intensify, Washington Insider believes.
| Rural Advocate News | Tuesday October 27, 2020 |
USDA Announces Another Round of Its Food Box Effort USDA authorizes $500 million for a fourth round of purchases for the USDA Farmers to Families Food Box Program, with the focus on those who need food during the COVID-19 pandemic. USDA expects to award contracts by Friday for deliveries of food boxes from November 1 through December 31. The announcement helped fuel milk futures as dairy products are a major focus. The program will continue the purchase of combination boxes to include fresh produce, dairy products, fluid milk and meat products. “We recently surpassed 110 million boxes delivered, and millions more are headed to Americans in need,” USDA Secretary Sonny Perdue said. “I'm very pleased that we are able to extend this program and continue our relief efforts for American farmers and families.”
| Rural Advocate News | Tuesday October 27, 2020 |
USDA Now Expects 2021 Rise In Restaurant Prices To Match 2020 The consumer price index for food away from home (restaurant prices) in 2021 is now forecast to be from 2.0% to 3.0%, up from USDA's prior forecast and even with the rate of grocery store price inflation for 2020, according to the Economic Research Service (ERS). “Forecast ranges for eight of the 22 CPI categories for 2020 have been revised upward this month, with only eggs being revised downward,” ERS said. “The forecast range for food-away-from-home was adjusted upward, while all other categories remained unchanged for 2021.” In September, USDA expected 2021 grocery store prices would rise 1.5% to 2.5% from 2020 levels. ERS forecasts grocery store prices in 2020 will rise between 2.5% to 3.5% in 2020 with restaurant prices seen rising 2% to 3%. In 2021, ERS expects grocery store prices to rise between 1% and 2%. Overall food price inflation is looked to be 2.5% to 3.5% in 2020 and then rise 2.0% to 3.0% in 2021.
| Rural Advocate News | Tuesday October 27, 2020 |
Tuesday Watch List Markets Durable goods report along with consumer confidence are two of the economic reports that we will be watching. Also, traders will be focused on new export sales, especially by China, at 8 a.m. Weather in Eastern Ukraine and southern Russia will be closely watched, as they continue to suffer through drought conditions. Weather Freezing rain and snow are in store for a large portion of the southern Plains and Texas Panhandle Tuesday. We'll also see rain through the remainder of Texas into the Gulf coast along with the southeastern Midwest. Other crop areas will be dry. Cold conditions in northern and central areas will keep harvest progress slow.
| Rural Advocate News | Monday October 26, 2020 |
KC Fed: Fewer Loans Issued to Farmers Limits Overall Lending Activity The Kansas City Federal Reserve says a slower pace of farm financing activity continued in the third quarter of 2020. The total volume of non-real estate farm loans remained subdued amid ongoing weakness in the ag sector, thanks in part to developments regarding COVID-19. The National Survey of Terms of Lending to Farmers says despite growing 15 percent from the previous year, total non-real-estate loan volumes in the third quarter of 2020 were below the 20-year trend for that period. Loans for operating expenses increased from last year but were still less than the previous three years. Loans to finance feeder livestock and farm machinery followed a similar trend, while the volume of loans for other livestock remained steady. All other loans declined for the second straight year, further weighing down the overall loan volumes. The number of new loans originated to farmers also declined for nearly all loan types. The total quantity of loans issued to farmers decreased, driven by a 12 percent decline in the number of operating loans. Similar to the prior quarter, government payments and lending programs may have offset both declines in farm revenues and financing needs of some farm borrowers in the third quarter. ********************************************************************************************** Stabenow Leads Opposition Against USDA Decision on Dairy Aid Senate Ag Committee Member Debbie Stabenow is leading a group of 15 senators asking Ag Secretary Sonny Perdue to reverse a decision that excluded dairy farmers from getting coronavirus aid for losses from meat produced from breeding animals. The Hagstrom Report says the senators point out that losses from meat produced from breeding animals were included in the first Coronavirus Food Assistance Program, but not in the second, which is known as CFAP 2. “This change will affect the livestock industry and will be particularly harmful to dairy farmers, who often operate at extremely tight margins,” the senators wrote in the letter. “The decision is even more troubling considering that USDA clearly has sufficient resources to cover these losses.” Additionally, they say the move would avoid confusing farmers. “It will be less complicated for both USDA and livestock farmers to cover all livestock and avoid confusion about what animals are covered or excluded,” they add. The senators say dairy farmers were struggling with prolonged market uncertainty, unfair trade practices, and the Administration’s “chaotic trade policies” long before COVID-19 hit. Considering the industry’s tight margins, the decision to exclude dairy farm losses related to meat production will be a significant blow. ********************************************************************************************** Farm Journal Report Shows Farmers Expect Stable to Higher Land Prices Like a lot of other aspects of the economy, 2020 has put downward pressure on farmland values, thanks in part to events like trade disputes and an economic downturn. At the same time, COVID-19 restrictions and uncertainty have left the market with much less available land. Farm Journal recently took a “Pulse Poll” of farmers on what they expect land values to do over the next year. The results show farmers seem to be looking for steady land values during the year ahead, but market analysts see the potential for strength in land prices. 28-percent of the survey respondents expect higher land prices, while 60 percent say prices will be stable. Just 12 percent of responses expect lower land prices. Doug Hensley, President of Real Estate Services for Hertz Farm Management, tells Farm Journal that four factors that may lead to a stronger farmland market. They include a limited inventory of farms for sale, rising commodity prices, higher government support for farmers, and interest rates that are staying low. While local markets can sometimes vary wildly, Hensley sees the overall market as back to where it was during early 2020: “Stable, with an overall bias to stronger,” he says. ************************************************************************************ “Beef. It’s What’s for Dinner,” Returning for the Holidays The holidays may look a little different in 2020. However, the National Cattlemen’s Beef Association and the Beef Checkoff want one thing to remain the same, and that’s beef. “Beef. It’s What’s for Holiday Dinner.” For the first time since 2003, the iconic “Beef. It’s What’s for Dinner” brand will be on television. It will air a limited number of ads during the Hallmark Channel’s Countdown to Christmas movies. The campaign released a successful video last year called the “Drool Log.” It’s a two-hour video of a Beef Prime Rib slowly cooking over an open flame, and viewers saw it more than. NCBA shortened the video to 15 seconds in the ads that will appear in late November and through December on the Hallmark Channel. In addition to bringing the brand back to television, the “Beef, It’s What’s for Dinner” brand will help consumers learn how to make the perfect holiday meal through fully integrated digital and social media work. Whether families are having a smaller family gathering or working with a tighter budget, there’s a beef option for everyone, and experts will be available through an updated landing page on www.BeefItsWhatsForDinner.com as a one-stop-shop for all cooking needs. *****************************************t***************************************************** Farmland Transfer Program Secures New Funding to Help a New Generation of Ag American Farmland Trust is a national leader in protecting agricultural land, as well as promoting environmentally-sound farming practices and keeping farmers on their farmland. AFT has just received an award from the National Institute of Food and Agriculture under the Beginning Farmer and Rancher Development Program to fund the “Transitioning Land to a New Generation: Preparing Trainers to Help Facilitate Transfer” program. The funding amount of $750,000 will go to develop a skills-based curriculum to support a new generation of producers and agricultural landowners as they confront the complex financial, legal, and interpersonal issues related to their agricultural land and business transfer. “More than 40 percent of American farmland is owned by people 65 and older,” says Julia Freedgood, AFT Director of Farms for a New Generation. “Given they are at retirement age, the land is likely to change hands in the foreseeable future.” At the same time, she says it’s difficult for a new generation of farmers and ranchers to acquire affordable land with appropriate housing and infrastructure due to farm consolidation, appreciation of land values, conversion of farmland to development, and a tight supply of available land. “American Farmland Trust will be working with a national cohort of service providers to help bridge the gap,” Freedgood says. ********************************************************************************************** USDA Announces Fourth Round of Farmers to Families Food Box Program The USDA says it has authorized $500 million for the fourth round of purchases for the USDA Farmers to Families Food Box Program. As in the third round, states in the program have been allocated a certain number of boxes based on the internal needs of each state. The program will continue the purchase of combination boxes to include fresh produce, dairy products, fluid milk, and meat products. The program will continue to require that proposals illustrate how coverage would be provided to areas identified as opportunity zones. “I’m gratified by the overwhelmingly positive response to the Farms to Families Food Box Program from families, distributors, food banks, faith-based organizations, and non-profits across the country,” says Ag Secretary Sonny Perdue. “We recently surpassed 110 million boxes delivered, and millions more are headed to Americans in need. I’m very happy that we can extend this program and continue our relief efforts for American farmers and families.” The agency will award contracts for the fourth round by October 30, while deliveries of food boxes will run from November 1 through December 31.
| Rural Advocate News | Monday October 26, 2020 |
Washington Insider: Economic Pressures Weigh on Small Businesses Bloomberg reported this week that economic pressures are building on many smaller businesses, and that they face greater economic threats than do larger firms. The report looked at SeaWorld Entertainment Inc., a publicly traded corporation, that “easily borrowed almost $730 million in the recent capital markets.” During the same period, a smaller firm, GeckoParx, is “shutting its doors after burning through nearly all of its money,” Bloomberg said. The gulf between big companies that have ready access to credit and just about everyone else got wider in the fallout of the COVID-19 crisis, as the Federal Reserve blew open capital markets and pledged to keep interest rates low as long as needed. However, bond markets are rarely an option for the likes of GeckoParx, with its 40,000 square feet of trampolines, ninja courses and arcades. The divide over access to corporate credit — who can get it, and who can't — is likely to deepen, Bloomberg thinks. Small businesses employ almost half of the country's private-sector workforce and have contributed about two-thirds of net employment gains in recent years. They so far have proved more resilient than feared thanks in part to Paycheck Protection Program government-backed loans. But that aid ended in August without reaching some of the tiniest and most vulnerable firms, especially those owned by minorities. Prospects for more stimulus before the Nov. 3 presidential election remain highly uncertain. By one estimate, the number of U.S. small businesses has dropped by almost a quarter compared with January, Bloomberg says. That's fueling concerns that large companies, some enriched by the pandemic's impact, will move in to fill the void. After using almost all the money they got through the PPP to keep their staff on payroll, Darlene and Mike Moore closed their southern-style restaurant in downtown Asheville, North Carolina, in mid-September, just under three years after opening. “We knew we weren't going to be able to sustain ourselves,” Darlene, 41 and a mother of two, said. “It became too much to endure.” The PPP, part of an unprecedented stimulus package passed by Congress in March in response to the pandemic, was always meant as a short-term stopgap for firms with fewer than 500 employees. After a rocky start, the PPP reached hundreds of thousands of truly small companies by the time it closed to new applications on Aug. 8. But many more were left behind, rejected by lenders or daunted by burdensome and often confusing rules to get the loans converted into grants. Even if lawmakers extend the expired PPP to allow recipients to get a second loan, it won't be enough to help those who never got one in the first place, said advocacy group Small Business Majority. By contrast, the Fed's action benefited all types of borrowers, as long as they were big enough to issue bonds. One of the peculiarities of the COVID-19 crisis is the divide created between bigger and smaller firms, said Robert Bartlett, a professor of law and faculty co-director of the Berkeley Center for Law and Business. The Fed's effort to add liquidity to the system allowed both investment-grade and junk-rated companies to access financing, while smaller firms were left with tighter credit markets, he said. The Fed announced its plan to directly purchase corporate bonds in late March, and expanded it to include some junk-rated debt in early April. The program included SeaWorld, which had been troubled before the pandemic forced it to temporarily close all of its 12 parks. About a month after the Fed's announcement the Orlando-based company had sold $227.5 million of bonds. In July SeaWorld made another trip to the bond market, announcing its offer on the same day it disclosed a 96% drop in second-quarter preliminary revenue compared with a year earlier. The bond attracted so much demand that the deal was increased by $100 million to $500 million. “The pandemic has unquestionably affected businesses of all sizes in the travel, tourism, hospitality and entertainment industries including SeaWorld,'' the company said in an emailed statement. “We have made difficult but necessary decisions to shore up our balance sheet using available resources to put the company in the best possible position to continue to contribute to our nation's recovery.” Any concentration in market power could exacerbate disturbing trends in the U.S. economy that already emerged as a result of a decline in competition, according to an August paper by two Federal Reserve Board economists. They identified deepening inequality and financial instability as a result of larger firms controlling more of their markets. A New York Fed study said that Black-owned firms have been almost twice as likely to shutter compared to all others. About 41% of Black- and Latino-owned business said they won't make it through the next few months without additional financial support, according to an SBA report. Frank Knapp, 68, whose family owns a dog-boarding business in Columbia, South Carolina, got PPP relief money in a second round to help stay afloat. He worries small businesses that go away will simply be replaced by larger competitors. “The customers they were serving aren't doing without,” Knapp said. “They are going to get their service from a bigger business that survived.” So, we will see. The effort to make the anti-virus programs truly equitable has been both controversial and difficult. It should be watched closely by producers as the economic season progresses, Washington Insider believes.
| Rural Advocate News | Monday October 26, 2020 |
USDA To Seek More Input On Cell-Based Meat USDA's Food Safety and Inspection Service (FSIS) plans to gather more information about cell-based meat and poultry products before it issues labeling regulations. The agency on Thursday (October 22) told IHS Markit that it intends to publish an Advanced Notice of Proposed Rulemaking (ANPR) seeking public comments to inform future labeling rules for cell-based meat and poultry products. “The ANPR will help ensure that a public process, allowing stakeholder comments, is used to develop labeling regulations,” according to FSIS. The agency did not provide specifics on when it would release an ANPR but said the rulemaking will be listed in the fall Unified Regulatory and Deregulatory Agenda and then published in the Federal Register.
| Rural Advocate News | Monday October 26, 2020 |
Democratic Senators Call For Change In CFAP 2 Senate Agriculture Committee ranking member Debbie Stabenow, D-Mich., and 14 Democratic Senate colleague are calling on USDA to reverse what they labeled an "arbitrary decision" that excludes lost meat sales by dairy farmers during the pandemic as eligible for COVID-19 aid payments under the Coronavirus Food Assistance Program 2 (CFAP 2). The senators noted that losses from meat produced from breeding animals was included in CFAP 1 but not the CFAP 2 effort. “This change will affect the livestock industry and will be particularly harmful to dairy farmers who often operate at extremely tight margins,” the senators said. “The decision is even more troubling considering that USDA clearly has sufficient resources to cover these losses. Additionally, it is less complicated for both USDA and farmers to cover all livestock and avoid confusion about what animals are covered or excluded.” It is not clear that the urgings from the lawmakers will result in a change in the CFAP 2 effort at this stage
| Rural Advocate News | Monday October 26, 2020 |
Monday Watch List Markets Traders will likely start the new week getting familiar with the latest weather forecasts and will watch for any export sales news from USDA at 8 a.m. CDT. The U.S. Census Bureau will release September new home sales at 9 a.m., followed by USDA's weekly grain inspections report at 10 a.m. USDA's Crop Progress report at 3 p.m. CDT will have harvest and winter wheat planting updates. Weather Snow and rain are in store for the Southern Plains Monday, offering favorable moisture for winter wheat. This wintry mix will also spread through the southern Midwest with disruption to harvest. Other crop areas will be drier. A very cold pattern in northern and central areas will delay harvest.
| Rural Advocate News | Friday October 23, 2020 |
2019 Organic Survey results show sales up 31% from 2016 The Department of Agriculture’s 2019 Organic Survey released Thursday finds total sales of $9.93 billion in organic products, an increase of $2.37 billion, or 31 percent, from 2016. Released by USDA’s National Agricultural Statistics Service, the report shows there were 16,500 certified organic farms, a 17 percent increase from 2016, which accounted for 5.5 million certified acres, an increase of nine percent over 2016. California continued to lead the nation in certified organic sales with $3.6 billion, which is 36 percent of the U.S. total and four times that of any other state. Top organic commodities include livestock and poultry products, milk, vegetables and fruit. The survey also asked producers about plans for future production. Twenty-nine percent of farms plan to increase their level of organic production. More than 1,800 certified organic farms have 255,000 additional acres in the three-year transition period required for land to become certified as organic. An additional 710 farms not currently certified reported 61,000 acres of land transitioning to organic production. ************************************************************************************ E15 Ethanol Blend Testing Begins in California The corn industry is working with the California Air Resources Board to conduct E15 vehicle testing at the University of California at Riverside. The National Corn Growers Association says E15 in the California market is vital to growing ethanol demand. The testing will demonstrate the environmental benefits and compatibility of E15 in selected makes and models of vehicles. The process will help pave the way for sales of E15 and higher blends of ethanol in California. NCGA Ethanol Action Team members JR Roesner says if E15 becomes the base fuel in California, “the potential market opportunity would be roughly 750 million gallons of ethanol or 260 million bushels of corn." Tests will be conducted on 20 late-model vehicles to measure tailpipe and evaporative emissions. Testing a broad sample of makes, models, and technology levels with both E10 and E15 blends will provide the state with the necessary information to permit the sale of E15 in California. ************************************************************************************ Senators Ask EPA not to Increase RVO or Reallocate Gallons under RFS A group of Senators urge the Environmental Protection Agency to not increase the Renewable Volume Obligation under the Renewable Fuel Standard for 2021. Specifically, the Senators asked Administrator Wheeler to use his statutory authorities under the Clean Air Act to cite “severe economic harm” and employ a general waiver to not increase the RVO for 2021. Given that COVID-19 has suppressed demand for gasoline, diesel, and jet fuel, the lawmakers claim any increase in the mandate would cause severe and outsized economic harm next year by raising costs for consumers, particularly at the gas pump. Additionally, the letter urges the EPA to not reallocate prior year obligations that would “increase burdens on refiners of all sizes, including small refiners.” Led by Senator Shelley Moore Capito, a Republican from West Virginia, the group states any increase in blending volume mandates would create “another drag” on the nation’s economy trying to recover from a pandemic. ************************************************************************************ Senator Seeks Disaster Assistance for Winegrape Growers A Senator from the Pacific Northwest is asking Senate colleagues to provide additional assistance for winegrape growers impacted by wildfires in 2020. Ron Wyden, A Democrat from Oregon, made the request to the Senate Appropriations Subcommittee on Agriculture this week. In the 2019 disaster relief package, Congress provided $3 million through the Wildfires and Hurricanes Indemnity Program for winegrowers whose grapes were damaged by wildfires in 2018 and 2019. Wildfires have again burned millions of acres of land throughout the West and caused heavy layers of smoke in 2020. Because of that, Wyden says winegrape growers now require the same assistance. Wildfire smoke can alter the flavor of grapes, making them unusable for wine. Wyden states, "the WHIP program is designed to compensate producers in this very situation, and it is critical that Congress provide this necessary assistance." Wyden made the request in a letter to the leadership of the agriculture appropriations subcommittee. ************************************************************************************ USDA Announces 3.1 Billion Investment in Rural Electric Infrastructure Agriculture Secretary Sonny Perdue Thursday announced a $3.1 billion rural electric infrastructure investment in 25 states. The Department of Agriculture is investing in 53 projects through the Electric Loan Program, benefitting 1.4 million rural residents and businesses across the country. The announcement is part of a record level of USDA electric infrastructure investments in one fiscal year. The department invested $6.3 billion in the Electric Loan Program in fiscal year 2020, up from $5.8 billion in 2019, also a record. USDA made loans to 119 utilities in 34 states across the country during fiscal year 2020, which ended on September 30. Those figures build upon the $3.7 billion invested in 2018. USDA’s Electric Program helps finance wind, solar and natural gas plants, as well as improvements to produce clean energy from coal-fired plants. Local utilities also use the loans to invest in infrastructure to deliver affordable power to thousands of residential, commercial and agricultural consumers. ************************************************************************************ 93rd National FFA Convention and Expo Next Week FFA members and supporters from across the country will log on to their smart devices next week to celebrate agriculture during the 93rd National FFA Convention and Expo. The event, which is traditionally the largest student convention in the country, will be held virtually this year. While the event will look different this year, an FFA spokesperson says it will "still have the amazing programming that we always offer our students and supporters." The general sessions, which will recognize the award winners, will air live on RFD-TV and the Cowboy Channel and streamed on RFD-TV Now, the Cowboy Channel + app and FFA.org, allowing members and supporters to tune in and watch gavel-to-gavel coverage of the events with no registration required. Those who register for the virtual event can experience many of the traditional convention experiences, including a member experience room, the Expo Hall, and Blue Room, staples of the in-person event. The convention will wrap up with the election of the 2020-21 National FFA Officer Team.
| Rural Advocate News | Friday October 23, 2020 |
Washington Insider: Fight Over Offshoring Jobs Continues Bloomberg is reporting this week that U.S. industrial jobs are continuing to move offshore — and that “major U.S. losses have been eating at the U.S. industrial core for decades, rather than simply the economic carnage caused by COVID-19.” The report also says that these trends highlight “a particularly stark example of how the administration has struggled to live up to its promises to end a decades-long migration of American factories overseas.” President Trump built a political brand around “America First” trade and tax policies that were meant to repatriate U.S. jobs. From the renegotiation of the North American Free Trade Agreement to the trade war with China, the administration is claiming that it has ended an era of offshoring and laid the foundation for an industrial renaissance. Bloomberg thinks the reality is more complicated—and that when it comes to offshoring, the data point to an enduring trend rather than a revolution. It argues that this can be seen in the applications for Trade Adjustment Assistance, the federal program that is the best available barometer on the effects of corporate disinvestment on employment. In the first three and a half years of the current administration, the U.S. Department of Labor approved 1,996 petitions covering 184,888 jobs shifted overseas. During the equivalent period of President Barack Obama's second term, 1,811 petitions were approved covering 172,336 workers. The report notes that stopping the outflow of factory jobs is a bipartisan priority in this election year and that former Vice President Joe Biden is proposing a tax credit for U.S. companies that bring production home and a 10% surtax on profits linked to new factories built overseas. He also has pledged to tighten Buy American provisions in government procurement and wants to close loopholes in the administration's tax reforms that he says encourage some industries to continue offshoring. But the past four years have shown that the policy levers presidents have available don't erase the lure of overseas markets where the consumer class is growing at a faster clip than in the U.S. and the costs of running a factory are lower. “At the end of the day it's hard through trade agreements to push back against these much larger economic forces,” says Edward Alden, a senior fellow at the Council on Foreign Relations. The administration rebranded NAFTA, the U.S.-Mexico-Canada Agreement (USMCA), and now requires automakers to use more parts made in North America. That agreement includes a provision to have at least 40% of components come from factories paying at least $16 an hour. The industry consensus is that these rules, which do not go fully into effect until 2025, may eventually prod automakers and their suppliers to channel more of their investment into U.S. plants, particularly as production of electric vehicles ramps up. Administration officials say that's already happening. As evidence, they cite the $2.3 billion joint venture General Motors Co. and Korea's LG Chem Ltd. announced last year to build a battery plant in Ohio. “We clearly reversed a long trend of jobs moving away from the U.S. in this industry and are bringing new investment and jobs back,” Trump's trade czar, Robert Lighthizer, wrote to Bloomberg. “The notion that companies are moving to Mexico now is ridiculous.” Labor Department data tell a different story, Bloomberg says. In the first six months of 2020 alone, the agency approved 25 petitions for trade aid related to auto parts factories going overseas. Fifteen involved relocations to Mexico. According to Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research, the new NAFTA has not provoked an investment surge. From 2013 through 2016 automakers announced investments worth $47.3 billion in the U.S., she says. From 2017 to 2019 the equivalent figure was $38.3 billion. “Investment goes along with growth in the market,” Dziczek says, and auto sales in the U.S. peaked in 2016. The report also says that plant closures like International Automotive Components in Huron, Ohio, leave the administration vulnerable to criticism of USMCA, which it sees as one of its signature economic achievements. “They tried to give it this new name and burnish it, and shine it up a bit. But it's just NAFTA 2,” said Rep. Marcy Kaptur, D-Ohio, whose district includes Huron. She voted against the USMCA last year. In written responses to questions, IAC would say only that the Huron plant was closing after 30 years because customers were ending vehicle programs. The company has been more explicit about other plants. The loss of 145 jobs in Dayton, Tenn., came because “production will be shifted to a foreign country,” IAC told the Department of Labor. In Madisonville, Ky., 111 jobs were cut because contracts “are being shifted to productions facilities in Canada and Mexico,” according to another filing. In the eyes of former workers at the Huron IAC plant, the blame for its demise lies somewhere between a management team that wasn't aggressive enough in chasing down new business and an administration that didn't live up to its promises. So, we will see. Certainly, U.S. trade policy will be front and center in political debates for the duration of the current campaigns, and beyond. These are often controversial and bitter fights that producers should watch closely as they proceed, Washington Insider believes.
| Rural Advocate News | Friday October 23, 2020 |
GOP Senators Call On EPA to Waive RFS Requirements For 2021 EPA should consider a general waiver of biofuel requirements under the Renewable Fuel Standard (RFS) in a bid to help refiners with the impacts of the pandemic. The lawmakers said that EPA should use its authority to make sure that RFS obligations for refineries provide “regulatory certainty for 2021, do not exceed the 'blend wall' of ethanol's proportion of actually marketable fuel blends, and—perhaps most pressingly—account for the unprecedented collapse in demand for gasoline, diesel and jet fuel resulting from the economic downturn associated with the COVID-19 crisis.” The lawmakers said the downturn in demand means Renewable Volume Obligations (RVOs) for 2021 “must be reduced to prevent outstripping the 'blend wall,' an unprecedented rise in the cost of Renewable Identification Number (RIN) offset credits, or both.” They maintain that keeping current RVO levels or expanding them would impose “severe economic harm,” one of the conditions that indicate the need for a general waiver of RFS requirements. They also called on EPA not to reallocate any volumes linked to small refinery exemptions (SREs) and to set 2022 biodiesel and 2021 advanced and cellulosic biofuel levels at marks that ensure compliance. “Put simply, EPA must not mandate blending too much biofuel into a dwindling fuel supply,” the lawmakers concluded, noting that any increases in the 2021 RVOs would impact consumers and shift economic hardships to refiners from ethanol producers. EPA has not yet finalized the 2021 biofuel and 2022 biodiesel levels with its proposed rule still shown as being under review at the Office of Management and Budget (OMB). EPA Administrator Andrew Wheeler has signaled the COVID pandemic has prompted the agency to take a new look at the proposal and now the focus is on whether the agency will meet the November 30 deadline to finalize those levels.
| Rural Advocate News | Friday October 23, 2020 |
China Makes Soyoil Buy And Ups Purchases Of Corn, Soybeans, Other Products Sales of U.S. ag goods to China continue for several commodities, with the country showing up as a buyer of U.S. soyoil for the first time in the current marketing year. For the week ended October 15, USDA reported net export sales for 2020/21 of 433,521 metric tons of corn, 195,804 metric tons of sorghum, 1.22 million metric tons of soybeans, 11,000 mt of soyoil, and 47,513 running bales of upland cotton. No new sales of wheat or rice were reported. For 2021/22, USDA reported net sales of 17,160 running bales of upland cotton. For 2020, net sales of 3,667 metric tons of beef and 1,802 metric tons of pork were also reported.
| Rural Advocate News | Friday October 23, 2020 |
Friday Watch List Markets The only official report on Friday's docket is USDA's monthly cattle on-feed at 2 p.m. CDT. Traders will continue to pay close attention to the latest weather forecasts and any new export sales announcements that come up. Weather Rain will cover the southeastern Plains through eastern Midwest Friday, bringing harvest to a halt for the weekend. We'll also see more disruptive snow in the northern Midwest. Dry conditions will be in place elsewhere. Conditions will be very cold for the season north and west and very warm for the season south and east. Arctic cold is set to spread through the central U.S. during the next five days.
| Rural Advocate News | Thursday October 22, 2020 |
China Forecast Higher Domestic Pork Supplies Pork Supplies for China’s upcoming Lunar New Year are projected 30 percent higher than year-ago levels. A Chinese agriculture official says the recovery will reduce prices compared with last year during the holiday. China’s Lunar New Year holiday is known as the country’s most important holiday where pork is traditionally served at millions of family meals. It will begin February 11, 2021. Chinese agriculture officials tell Reuters that pig producers have built 12,500 new large-scale pig farms in the first three quarters of the year and restarted more than 13,000 empty farms. Officials say the recovery had been “better than expected” from African swine fever, which impacted at least 40 percent of China’s hog herd. The increased pork supplies reflect the recovery, but also large imports of pork. The U.S. Meat Export Federation says through August, exports to China and Hong Kong more than doubled last year’s totals in both volume and value. ************************************************************************************ August Derecho Costliest Thunderstorm Event The National Oceanic and Atmospheric Administration calls the August derecho the most expensive thunderstorm event in modern history. As part of NOAA’s Billion-Dollar Weather and Climate Disasters list, the August derecho is estimated to have caused $7.5 billion in damages. The storm traveled from southeast South Dakota to Ohio, a path of 770 miles in 14 hours producing widespread winds greater than 100 mph. The states most affected included Iowa, Illinois, Minnesota, Indiana and Ohio. The storm caused widespread damage to millions of acres of corn and soybean crops across central Iowa. There was also severe damage to homes, businesses and vehicles. In addition, there were 15 tornadoes across northeastern Illinois, with several affecting the Chicago metropolitan area. While noting wildfire damages are to be determined, NOAA says the thunderstorm is second to Hurricane Laura in 2020, which caused $14 billion in damages. Other 2020-billion-dollar weather events include tornado outbreaks in the Southeast and Tennessee, and several severe thunderstorm events this spring. ************************************************************************************ Smith Urges USDA to Provide Incentives to Stop CRP Enrollment Decline A Senator from Minnesota wants the Department of Agriculture to increase incentive payments to stop the enrollment decline in the Conservation Reserve Program. Senate Democrat Tina Smith sent a letter to Agriculture Secretary Sonny Perdue this week asking him to significantly increase Practice Incentive Payments and begin making rental rate incentive payments, both tools that past Administrations have used to maintain strong enrollment in CRP. Joined by four other Democratic colleagues in the Senate, the lawmakers pointed out that during a time of declining CRP enrollment, USDA has offered Practice Incentive Payments at only five percent of the cost of the practice, even after the 2018 Farm Bill authorized USDA to pay farmers up to 50 percent of the cost. Past Administrations have also offered rental rate payments to incentivize enrollment, something the Trump Administration has not done. In 2020, 5.36 million acres of CRP land are scheduled to expire, while just 3.54 million acres have enrolled in the program, resulting in the loss of nearly two million acres. ************************************************************************************ State Cattle Groups Support Cattle Market Transparency Act More than a dozen state cattle organization voice their support for the Cattle Market Transparency Act. In a letter to Senate Agriculture Committee leadership, 16 state cattle groups say the bill "will aid in cattle market transparency for all producers." Led by the Nebraska Cattlemen's Association, the group says, "our respective organizations do not ask for any type of market manipulation or guaranteed profit." Rather, they seek readily available information to allow cattle producers the ability to make informed and educated decisions. Introduced by Senator Deb Fischer, a Nebraska Republican, the bill includes the cattle contract library, 14-day packer purchase commitment outlook, and clarification of Livestock Mandatory Price Reporting confidentiality guidelines to avoid non-reporting of collected data on a regional and national basis. Additionally, the bill directs the Department of Agriculture’s Agriculture Marketing Service to establish regionally negotiated cash plus negotiated grid marketing volume minimums thresholds that enhance price discovery goals and commitments. ************************************************************************************ USDA NIFA Providing Citrus Disease Research Grants The National Institute of Food and Agriculture recently awarded 12 grants totaling over $45 million for researchers to combat citrus greening disease. A NIFA spokesperson says the research “is critical to help farmers find scientifically sound solutions to citrus greening.” Although citrus greening is a serious threat to the citrus industry worldwide, significant progress has been made to coordinate a multipronged approach for citrus greening management. The progress includes the suppression of an insect that carries and spreads the disease. The 12 grants were awarded to the University of California Riverside, University of California Davis, Yale University, and University of Florida Gainesville, among other higher education institutions. Earlier this month, the Department of Agriculture projected Florida orange production for 2020-21 down 15 percent. Citrus greening is one of many factors for the lower production, a trend occurring over the past decade. It’s estimated citrus greening has caused a 21 percent reduction in fresh citrus fruit and a 72 percent decline in orange production in the United States. ************************************************************************************ Impossible Foods Expanding, Calls Animal Ag “Most Destructive Technology on Earth” Impossible Foods is expanding its multifaceted technology platform, accelerating product development, and plans to double its research and development team's size over the next 12 months. Based in California's Silicon Valley, Impossible Foods makes meat and dairy imitation products from plants. The company says the expansion helps it reach its goal to reverse global warming. Impossible Foods takes aim at animal agriculture, calling it “the most destructive technology in human history.” The company claims producing the Impossible Burger uses about 87 percent less water, generates about 89 percent less greenhouse gases and requires around 96 percent less land than conventional ground beef. Impossible Foods is self-described as one of America's fastest-growing brands and the leading driver of growth in the plant-based food category. Impossible Foods has more than 250 patents and patents pending. Its intellectual property includes methods to decode and reverse-engineer the molecular foundations and entire sensory experience of animal-derived meat, including how it tastes, cooks, sizzles and smells, and how to recreate the experience without animals.
| Rural Advocate News | Thursday October 22, 2020 |
Washington Insider: Bigger Weekly Unemployment Checks Built a Buffer The New York Times is reporting this week on some of the impacts of the $600 weekly unemployment benefit — even as the odds of a new stimulus package appear to be dwindling. The report says the recent policy was “a remarkably effective expansion of the safety net. It helped pay many workers more than their lost wages. It enabled families to spend more than during normal times. It even allowed households to put away savings as the economy was teetering.” Then the money stopped at the end of July. The article concludes that “it's clear, looking back, what happened next: Workers quickly burned through the reserves that the aid had given them.” Of the savings many households were able to build up over the course of four months of unusually generous government help, much of it was gone by the end of August. Unemployed workers — and the economy at large — were effectively living off the exhaust fumes of the CARES Act heading into the fall, Peter Ganong, an economist at the University of Chicago who studied the data, told the Times. The researchers can't yet tell what happened to these workers' finances in September, but the reality appears to be grim. If the $600 checks created something of a life preserver for jobless workers, that life preserver deflated quickly, Ganong said. Two and a half months after the benefits ended, Congress and the White House have been unable to reach an agreement on a stimulus package to revive them. President Trump signaled this week that he wants a big deal, against the wishes of many Senate Republicans, but hopes have dimmed for an agreement before the election. “It's honestly kind of staggering to me that Congress could leave us in this position,” said Daniel Lawson, who has been without a job in New York City since early in the pandemic. He believes he caught the coronavirus while working at a Trader Joe's in March and is still living with its effects: the fatigue, the brain fog, the sense of smell that hasn't returned to normal yet. Faced with dwindling savings and constant bills, most households face a dilemma. “The choices are to stop spending on regular everyday purchases, or stop making payments like mortgages, student loans, auto loans, credit cards,” Ganong said. “That's a terrible choice for a family to have to make. It's a terrible choice for the macro economy.” The analysis found unemployed workers did cut their spending after the $600 supplement ended, by an average of $93 a week across the month of August, compared with July. Ganong suspects that the decline in spending might have continued in September, based on the dwindling savings workers had left. The checking accounts examined in the research, which were stripped of identifying information, come from Chase customers in 11 states where unemployment is paid out weekly, including California, New York and Wisconsin. In the data, workers receiving unemployment had those benefits deposited directly into their accounts. Workers who didn't receive such payments were treated as still employed. And there's little sign in account balances that the unemployed were moving large sums in or out of these accounts to other assets like savings accounts, making these checking accounts a good measure of the resources workers built up and drew down, the Times said. Other research supports the idea that families have been saving a significant share of their unemployment insurance checks. In a survey fielded by the Federal Reserve Bank of New York in June, families reported setting aside nearly a quarter of their unemployment checks as savings. The New York Fed also found that nearly half of unemployment payments went toward paying down pre-existing debt. Even modest-seeming drops in spending by the unemployed reflect difficult decisions at this stage. Charissa Ward, who lost the well-paying job she'd had for 15 years as a server at Disney World in Florida, has replaced some grocery store runs with trips to a food bank. And the school supplies she would normally buy for her three children were donated by co-workers from Disney instead, when the $600 dried up on the eve of a new school year. “It's a mental strain on people emotionally, especially for someone like me that has worked since I was 15,” said Ward, who is 37. “I've never been in this situation.” Allegra Troiano, who lives in Milwaukee, believed she was a few years away from retiring from her job preparing foreign students to study at American schools when the pandemic crushed the international education industry. Those students aren't coming anymore, and it's hard to know when they'll be back. Troiano, who is 64, was laid off in May, and for a while over the summer she believed that the extra federal aid would keep her going until she could return to work. Now she fears she may be forced into early retirement, collecting pensions and Social Security earlier than planned. So, we will see. Clearly, the “special” unemployment benefits and other stimulus programs have wide support, but also strong political opposition. Economists say that the more the stimulus programs are cut, the stronger the economic headwinds against the economic recovery will be. Certainly, the fights over efforts to help workers endure the coronavirus shutdowns are important and should be watched closely by producers as they are debated this fall, Washington Insider believes.
| Rural Advocate News | Thursday October 22, 2020 |
NOAA Pegs August Derecho Damage At $7.5 Billion The derecho that rolled through Iowa and other areas of the Midwest August 10 racked up $7.5 billion in damages, according to an assessment released by the National Oceanic and Atmospheric Administration (NOAA). “A powerful derecho traveled from southeast South Dakota to Ohio, a path of 770 miles in 14 hours producing widespread winds greater than 100 mph,” NOAA said in a description of the event, with Iowa, Illinois, Minnesota, Indiana and Ohio the most-affected states. “This derecho caused widespread damage to millions of acres of corn and soybean crops across central Iowa,” NOAA said. “There was also severe damage to homes, businesses and vehicles particularly in Cedar Rapids, Iowa. In addition, there were 15 tornadoes across northeastern Illinois several affecting the Chicago metropolitan area.” The NOAA analysis indicated that the damages from Hurricane Sally, western/central droughts and heatwave and western wildfires are yet to be determined with damages from Hurricane Laura put at $14.0 billion.
| Rural Advocate News | Thursday October 22, 2020 |
Fed Says Farm Payments Improving Farm Income Expectations Overall U.S. economic activity remains below pre-pandemic levels and ag conditions vary across the country, according to the Federal Reserve's “Beige Book” report that recaps economic conditions. The report is issued two weeks ahead of the next Fed policy meeting. In the Atlanta Fed district, the report said that “agricultural conditions remained weak.” There were some reports of hurricane damage. USDA reported that in August, year-over-year prices paid to farmers were up for cotton, rice, soybeans, and milk, but down for corn, cattle, broilers, and eggs. In the Chicago Fed update, they noted, “Rising prices for key agricultural commodities and additional government support lifted expectations for farm income for the year.” But the report also cautioned, “There were reports that improved income prospects had eased stress on agricultural borrowers somewhat, though concerns remained for next year, when government support was expected to drop substantially.” The Minneapolis Fed reported “agricultural conditions improved going into the harvest season, however low prices depressed the outlook for farm incomes.” The Kansas City Fed struck a similar tone, noting, “Alongside government payments that were expected to help offset revenue losses, prices for most of the region's major agricultural commodities increased slightly in late September. However, apart from soybean and hog prices, agricultural prices generally remained low.”
| Rural Advocate News | Thursday October 22, 2020 |
Thursday Watch List Markets Thursday morning reports start with weekly export sales, weekly U.S. jobless claims and an update of the U.S. Drought Monitor, all set for 7:30 a.m. CDT. September U.S. existing home sales and a U.S. index of leading indicators follow at 9 a.m. The U.S. Energy Department reports on natural gas inventory at 9:30 a.m. and USDA's monthly cold storage report is set for 2 p.m. CDT. Weather Snow in the Northern Plains and rain in the western and northern Midwest will disrupt harvest Thursday. Other crop areas will be dry. Stormy conditions are indicated for the northern and central crop areas through the weekend along with possible record cold due to a large Arctic cold wave moving into the interior U.S.
| Rural Advocate News | Wednesday October 21, 2020 |
U.S. Winter Outlook: Cooler North, Warmer South Expect a dry, warm winter in the south, and cooler, wetter, conditions in the North, according to the National Oceanic and Atmospheric Administration. NOAA last week released its U.S. Winter Outlook, indicating weather impacts from an ongoing La Nina. Forecasters at NOAA’s Climate Prediction Center are also closely monitoring persistent drought during the winter months ahead. Currently, large areas of drought extend over the western half of the U.S., with parts of the Northeast also experiencing drought and near-record low stream flows. Wetter-than-average conditions are most likely across the northern tier of the U.S., extending from the Pacific Northwest, across the Northern Plains, Great Lakes and into the Ohio Valley, as well as Hawaii and northern Alaska. The ongoing La Nina is expected to expand and intensify drought across the southern and central Plains, eastern Gulf Coast, and in California during the months ahead. However, drought conditions are expected to improve in the northern Rockies, Northwest, New England, Alaska and Hawaii over the coming months. ************************************************************************************ Reuters: Payments to Farmers at All Time High Before Election Direct payments to U.S. farmers are at an all-time high as the nation prepares for a national election next month. Record government subsidies, much needed in the turbulent trade environment and coronavirus pandemic, are projected to make up more than a third of farm income in 2020. In a report by Reuters, the aid programs could be key to Donald Trump’s chances of success in swing states. The Environmental Working Group called agriculture aid in the latest COVID-19 relief package "old-fashioned vote-buying." Farmers, facing steep losses stemming from Trump's trade policies and COVID-19 related market disruption would argue the funds are needed. However, this fall, commodity prices are slowly improving and providing a better outlook for agriculture. Meanwhile, the direct payments have the attention of farm groups in Canada. Grain Farmers of Ontario is seeking more funding from the Canadian government. One farm group executive from Canada states, “Government funds have allowed U.S. producers an advantage over farmers in Canada, not just on price but money to invest in their operations.” ************************************************************************************ Lack of Trade Deal Will Hurt EU-UK Food Supply Chain The absence of an EU-UK trade deal on January 1, 2021, would cause significant economic losses on both sides for companies active in food and agriculture supply chains. Rabobank researchers say companies in the food supply chain should be prepared for loss of export and import opportunities. A certainty of a no-deal scenario is that the EU will consider the UK a third country as of January 1, 2021, and will apply import tariffs on UK food and agriculture products, just as the EU does on imports from other third countries. Import increases related to agriculture include dairy, red meats, sugar, and consumer foods, among other categories. Rabobank says that without a trade deal, export volumes out of the UK to the EU will shrink to almost negligible levels in most cases. Tariff levels range from 30 percent, for beef, dairy and sugar, to 10-30 percent for pork and poultry, and ten percent for some fruits and vegetables, beverages and fertilizers. ************************************************************************************ Minnesota Governor Announces State Aid for Agriculture Minnesota Governor Tim Walz this week announced a $7.7 million plan to support farmers impacted by the COVID-19 pandemic. Funded through the federal Coronavirus Aid, Relief, and Economic Security Act, or CARES ACT, the financial support will help farmers who have experienced market disruptions recover from and purchase equipment and supplies necessary for COVID-19 in Minnesota. Walz stated, “the COVID-19 pandemic has dramatically changed the way farmers and agricultural businesses must operate.” The funding includes $5.75 million for direct payments to turkey and pork producers to compensate for market disruptions and associated costs due to COVID-19. The funding also includes $1 million for cost-share aid to companies or individuals looking to expand or open a meat processing facility. Walz says further investment in meat processing capabilities will help alleviate the back up of animals caused by supply-chain impacts of COVID-19. Finally, the plan includes funding for local food systems, farm business management scholarships, and reimbursements for grants that provided Minnesota-grown food in school summer meal programs. ************************************************************************************ Grants Support Ethanol Industry Safety Education $75,000 in grants awarded to the Renewable Fuels Association will promote safety education through on-site seminars and internet webinars. Both grants were received via the association's work with a voluntary national outreach effort that assists communities in preparing for and responding to a possible hazardous material transportation incident. RFA Technical Services Manager Missy Ruff says, "Safety is a high priority for the renewable fuels industry, and we consider it an important part of our mission." A $25,000 grant from the Federal Railroad Administration will support ten ethanol safety seminars and four "train the trainer" webinars for first responders. A $50,000 Community Safety Grant from the Pipeline and Hazardous Materials Safety Administration will fund six Ethanol and Steel Drum Safety seminars in conjunction with the Industrial Steel Drum Institute. The four "train the trainer" webinars will take place starting in December. For more information, visit the Ethanol Emergency Response website at www.ethanolresponse.com. ************************************************************************************ Forest Service Accepting Grants for Innovations in Wood Products, Energy The USDA Forest Service is accepting applications for innovation grants. Announced Tuesday, the agency has approximately $10 million in funding available through the 2021 Wood Innovations Grant and the 2021 Community Wood Energy and Wood Innovation Grant. The grants seek to support local economies through wood products and wood energy innovations while reducing hazardous fuels and improving forest health. USDA says the Wood Innovations Grant program has a long track record of success and seeks to strengthen emerging markets for innovative wood products such as mass timber and cross-laminated timber. Eligible projects should increase wood products manufacturing capacity, strengthen markets that support forest ecosystem restoration and develop commercial facilities for wood biomass and wood products, among others. The application for 2021 Wood Innovations Grants closes in January. Meanwhile, the Community Wood Energy and Wood Innovation Grant program aims to support forest health by expanding renewable wood energy use and innovative manufacturing for wood products. The application period closes in February.
| Rural Advocate News | Wednesday October 21, 2020 |
Washington Insider: Other Developments of Interest, Including Hemp Politico is reporting this week that it's been nearly two years since the 2018 Farm Bill was signed into law, legalizing industrial hemp production nationwide and fueling hopes of a hemp farming boom. However, the report says “that hasn't panned out yet, with growers around the country still struggling to reap the benefits of the burgeoning crop sector.” USDA has approved hemp programs for 29 states and is negotiating with another 12. That means a patchwork of inconsistent state regulations and unclear federal guidance for the industry, Politico thinks. And, after millions of acres of hemp were planted in 2019, production is way down this year; many growers gave up because of a steep drop in prices and the lack of a market for their crops. Some state agricultural officials were so unsatisfied with the regulatory framework that USDA proposed last year that they decided not to move forward with hemp initiatives. Among the biggest complaints are the strict limits on THC that can be present in hemp crops and the stringent testing requirements to certify those levels of the psychoactive chemical. Another major hurdle: The FDA has yet to put forth regulations on cannabidiol, the widely popular compound derived from hemp that's increasingly found in products from pills to pet foods. The agency's CBD guidance has been awaiting approval from the White House since July. As a result, while hemp was expected to breathe new life into the industry, after a steady agricultural downturn since farm earnings peaked in 2013 compared to other corners of agriculture, hemp growers held up relatively well early in the pandemic. But even then, advocates worried that the slow-moving regulatory process would stifle what was promised to be a bountiful new frontier in farming — a warning that's increasingly proving true with harvesting now underway. In another controversial area, Politico says that the North American Meat Institute and the Alliance for Meat, Poultry and Seafood Innovation, the trade group representing the burgeoning cell-based protein industry, joined forces today to back a mandatory labeling requirement for cell-based meat and poultry products. “Although these products have not yet come to market in the U.S., market entry is fast approaching, and there is significant interest in the regulation of these products, particularly regarding applicable labeling requirements,” the groups wrote in a letter to USDA. The groups emphasized that they are “committed to supporting and complying with principles that ensure labeling is truthful and not misleading, does not disparage cell-based/cultured or conventional products, enables consumers to distinguish between such products, and is consistent with the safety and nutritional qualities of the product.” The groups also recommended that USDA's Food Safety and Inspection Service issue an Advance Notice of Proposed Rulemaking to get more info and data on the products to help the agency work on the labeling issue. Also this week in yet another development below the radar of most agricultural groups, the Federal Reserve Chair Jerome Powell told the International Monetary Fund meeting last week that the Fed hasn't made a decision to issue a digital currency, citing the need for further work and “extensive” public consultation with stakeholders before doing so. “It's more important for the United States to get it right than to be first,” Powell said Monday on a panel during the IMF annual meeting. “We are committed to carefully and thoughtfully evaluating the potential costs and benefits of a central bank digital currency for the U.S. economy and payments system. We have not made a decision to issue a CBDC.” Fed officials have swerved sharply from their previous approach to digital currencies, embracing a full-scale study on whether one might be suitable for the U.S. Powell said about 80% of central banks around the world are exploring the idea. “There are a number of ways that a CBDC might improve the payments system, and it is mainly this area that motivates our interest,” Powell said. The central bank announced in August that it was expanding experimentation with technologies related to digital currencies. In addition, the Boston Fed is working with researchers at the Massachusetts Institute of Technology to build a hypothetical digital currency oriented for central bank use. Many of the policy questions are unresolved, but those efforts are indicative of how seriously the Fed now regards the project. U.S. central bankers were slow to warm to the idea of a digital currency, but their interest picked up after Facebook proposed its own unit of exchange for its users. Digital money could change the way monetary policy works in the economy, as well as speed up a payment system that remains slow and taxing for consumers and behind many other nations. Central banks from Sweden to Canada and China are studying whether their money should have a digital counterpart. Sweden began an e-krona project in 2017 and has issued two reports on the topic. The Bank of Canada has launched a formal research project that has partnered with other monetary authorities. The Bank of Japan said earlier this month that it aims to start early phase experiments next year. So, we will see. Certainly, neither the ag sector nor the banking sector is the same as it was a few decades ago, and not only are pressures from new threats growing but new approaches to consumers and the sector are changing quickly as well. These are developments producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday October 21, 2020 |
Potential US Corn, Soybean Exports to Brazil Unlikely The Brazilian import tariff waiver for corn and soybeans is not expected to result in major purchases of either commodity from the U.S., according to a report from the U.S. Foreign Agricultural Service (FAS) office in Brazil. A report from the office outlines “several hurdles” for the imports, including that “U.S. soybeans may remain too expensive to make sense for Brazilian importers given the U.S. FOB price and ocean freight costs” despite a $20 to $25 discount to Brazilian prices. Plus, there are some nine GMO corn and soybean varieties approved in the U.S. that have not been approved in Brazil. For importers to bring those in, the attaché said they would have to submit a special approval request to the National Technical Commission on Biosecurity (CTNBio) and there are only two more scheduled meetings of that body the rest of 2020. The FAS also pointed out that Brazilian ports are geared for exports, “and reverse engineering the setup is time and resource-intensive.” However, the report said there is “potential for the tariff-free time frames to be extended” beyond the January 15 for soybeans and oy products and March 31 for corn.
| Rural Advocate News | Wednesday October 21, 2020 |
CFAP 2 Payments Rise To More Than $6 Billion Payments under the Coronavirus Food Assistance Program 2 (CFAP 2) have reached $6.1 billion as of October 18, with 349,747 applications approved. Acreage-based payments total $3.2 billion, livestock payments are at $1.7 billion, dairy at $626 million, sales commodities are at $599 million and eggs/broilers are at $13.0 million. By commodity, the payouts have reached $1.8 billion for corn, $1.4 billion for cattle, $688 million for soybeans, $626 million for milk, $559 million for sales commodities, $315 million for hogs/pigs and $303 million for wheat. Iowa leads all states with $604 million, followed by Illinois at $433 million, Nebraska at $428 million, Minnesota at $428 million, Wisconsin at $331 million and Kansas at $311 million. Payments under the CFAP 1 program are at $10.3 billion as of October 18, including $5.0 billion for livestock, $2.6 billion for non-specialty crops, $1.8 billion for dairy, $784 million for specialty crops and $111 million for aqua/nursery/ flora crops. As with CFAP 2, Iowa leads all states with a total of $969.7 million.
| Rural Advocate News | Wednesday October 21, 2020 |
Wednesday Watch List Markets The latest weather forecasts will be watched closely for North and South America and the Black Sea region. Export sales announcements at 8 a.m. CDT have become a daily event. The U.S. Energy Department's weekly inventory report, including ethanol production will be released at 9:30 a.m. CDT. The Federal Reserve's Beige Book is due out at 1 p.m. CDT. Weather Wednesday features rain and snow in the Northern Plains and light rain to the southeastern Plains through eastern Midwest. This unsettled pattern means harvest disruption. Southern Plains wheat areas remain dry. Temperatures will have a large difference from very cool north to very warm south. Additional northern rain and snow is in store Thursday.
| Rural Advocate News | Tuesday October 20, 2020 |
NCBA Releases Price Discovery Proposal The National Cattlemen’s Beef Association released its proposal over the weekend for voluntary cattle market price discovery. In a letter to NCBA members, NCBA President Marty Smith says the proposal "lays out a plan to increase negotiated trade and incentivize each of the major packers' participation in such negotiated trade." An NCBA working group came up with the report, "A Voluntary Framework to Achieve Price Discovery in the Fed Cattle Market." The framework explains in detail what the organization calls the "75 Percent Plan," which is designed to provide negotiated trade and packer participation benchmarks for the industry to strive toward. Smith says the plan seeks to achieve no less than 75 percent of the weekly negotiated trade volume that current academic literature indicates is necessary for “robust” price discovery in a specific region, among other thresholds. In the event that defined triggers are tripped in any two out of four rolling quarters, the Subgroup will recommend that NCBA pursue a legislative or regulatory solution to compel robust price discovery. ************************************************************************************ Meat Institute Calls for Mandatory Labeling of Cell-Based Products Two meat industry groups urge the Department of Agriculture to support mandatory labeling of cell-based/cultured meat and poultry products. The Meat Institute and the Alliance for Meat, Poultry and Seafood Innovation penned the request in a letter to USDA Monday. The groups also call on USDA to solicit input on what that labeling should look like through an Advance Notice of Public Rulemaking. Under a joint framework for regulation of cell-based/cultured meat, poultry and seafood products, the two agencies will work together to ensure the safety and labeling of cell-based/cultured meat and poultry products. Among other provisions of the framework, FSIS will have oversight of cell-based/cultured meat and poultry labeling, as it does for all meat and poultry sold in the United States. The FDA will oversee cell-based/cultured seafood labeling, as it does for most seafood sold in the United States. In a recent public presentation, the agencies committed to joint principles for product labeling and labeling claims. ************************************************************************************ NPPC Seeks Immediate COVID-19 Relief The National Pork Producers Council calls for immediate relief for the nation’s hog farmers. U.S. hog farmers are facing $5 billion in collective pandemic-related losses this year following two challenging years due to trade retaliation. NPPC President Howard AV Roth says, “We’ve lost hog farmers of all sizes due to the COVID pandemic and need additional relief to preserve a highly competitive pork production system.” Without further assistance, Roth says, “we will lose more hog farmers and see our farm sector consolidate.” Among the provisions NPPC is seeking, they include compensation for euthanized and donated hogs. Additionally, the organization asks for modification of the Commodity Credit Corporation charter so a pandemic-driven national emergency qualifies for funding. The organization also seeks additional funds for direct payments to producers without restriction, and an extension of the Paycheck Protection Program with modifications to make it accessible to more producers. NPPC also calls for additional funding for animal health surveillance and laboratories, which have appropriately assisted and shared resources with their public health partners. ************************************************************************************ National Grange Urges FDA to be Innovative in Vaccine Distribution The National Grange wants the Food and Drug Administration to consider "any and all" delivery options of a COVID-19 vaccine for rural Americans and farmworkers. In a letter to the FDA, the organization says, "we believe that innovative options such an oral vaccine in pill form should be pursued." The organization suggested mail delivery of vaccines to rural Americans to ensure quick and easy access once a vaccine is available. Rural America faces a shortage of healthcare providers, as the organization cites a national study reported in 2019. The study found that there are only 12 doctors per 10,000 people in rural America versus more than twice that number, 29.6 per 10,000, in urban areas. Moreover, the study forecast a 23 percent decline in the number of rural physicians over the next decade as current doctors retire. According to the organization, those statistics, coupled with the fact that over 100 rural hospitals have closed in the last decade, further complicate the health care access situation in rural America. ************************************************************************************ Rodale Institute Investment to Increase Land Access for Organic Farmers Rodale Institute Monday announced a $2 million investment to provide organic and regenerative farmers land security through long-term leases and mortgages. Through a partnership with the Iroquois (err-re-coy) Valley Farmland Real Estate Investment Trust, Rodale Institute will use money from its endowment fund to increase land access for organic farmers across the country and boost organic acreage, a core tenet of Rodale Institute’s mission. Rodale Institute has been researching the benefits of regenerative organic agriculture for over 70 years. Despite the organic market reaching $55 billion in the U.S. in 2019, only one percent of U.S. farmland is certified organic. Iroquois Valley seeks to break down those barriers by purchasing farmland and entering into a lease agreement or underwriting a mortgage for organic farmers looking to start or expand their operation. Rodale Institute's investment allows Iroquois Valley to purchase more land, offer those resources to farmers nationwide, and provide the organization with "more stability” in its investment portfolio. ************************************************************************************ January Sheep Industry Convention Goes Virtual The American Sheep Industry Association Executive Board last week opted to plan a virtual event rather than in person in January 2021. The ASI Annual Convention was scheduled for January 27-30 at the Sheraton Denver Downtown Hotel. However, state and local COVID-19 restrictions on social distancing made meeting room capacity an issue. Additionally, safety concerns would have meant some directors would not attend in person, therefore a much more expensive hybrid version of in-person and virtual would have been needed. ASI’s contract with the hotel has been rolled back to the next open convention dates in 2024. While the ASI officers and staff will gather in Denver to present a two-day event during the last week in January, all other attendance at the convention will be virtual. In addition, there will be no annual awards in 2021, as the executive board felt the virtual format would not allow for a proper celebration of those winners.
| Rural Advocate News | Tuesday October 20, 2020 |
Washington Insider: Complicated Future for Central Banks Bloomberg is cautioning now that the U.S. Federal Reserve and other central banks will eventually discover that “breaking up isn't easy” after partnering with their governments and the financial markets to avert a pandemic-driven depression. Investors and lawmakers enamored with cheap money “may well balk when monetary authorities try to throttle back their quantitative easing and other stimulus measures,” the report said. “They are increasingly on what I call a no-exit paradigm,” Allianz SE chief economic adviser and Bloomberg Opinion columnist Mohamed El-Erian, told a group of experts included in a panel discussion last week. The problem isn't pressing – and in fact is probably one central bankers would be glad to have if it meant their economies were strong. Instead, faced with slowing global growth and resurgent infections, the focus of policy makers at last week's all-virtual International Monetary Fund and World Bank meetings was on more support for the world economy, not less. Central banks are pulling out the stops to do all they can, boosting financial markets with massive asset purchases and pushing government borrowing costs to record lows,” Bloomberg said. Fed Chairman Jerome Powell has repeatedly pressed for more aid to support the economy until it's clearly out of the woods. “The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side,” he told business economists on Oct. 6. However, he thinks that “the trouble may start after a virus vaccine is approved and distributed” and the U.S. and world economies begin to return to normal. If the Fed and other central banks are constrained from scaling back emergency stimulus at that point, the continued flood of liquidity could spur asset bubbles and even too-rapid inflation, he said. Rebecca Patterson, director of investment research at Bridgewater Associates, said she saw some merit to arguments that the U.S. ultimately will see faster inflation because of continued aggressive fiscal stimulus. “It's something investors really haven't had to think about for the last few decades,” she told an Oct. 13 Council on Foreign Relations briefing. “Whether we get it or not, preparing for that risk scenario is pretty important.” Patterson said that economic policy “has entered a new paradigm, with independent central banks and governments working closely together to fight the pandemic.” Monetary policy makers are buying up government bonds while fiscal policy practitioners are issuing more of them to finance mammoth budget deficits. “Fiscal has become the dominant driver,” Patterson said. The relationship between the central banks and their governments is “sort of a honeymoon situation because their interests are aligned,” former European Central Bank chief economist Peter Praet said. “There is no inflation, so the central banks ask the fiscal authority to spend more to support aggregate demand,” he told a later panel discussion hosted by the Institute of International Finance. “But when their interests start to diverge, that's a very delicate moment.” The debt deluge may have other consequences. The Treasury market is now so large that that it may not be able to function smoothly on its own during times of stress, according to Fed Vice Chair for Supervision Randal Quarles. He told a virtual discussion organized by the Hoover Institution on Oct. 14 that it was an “open question” whether the Fed would have to keep buying Treasuries to aid the working of the market. The central bank is currently purchasing about $80 billion of Treasuries a month. Central bank leaders from Europe, Japan and the UK stressed the importance of maintaining the independence of their institutions at a virtual international banking seminar on Sunday. “We have to steer clear of what would be regarded in popular parlance as fiscal dominance,” European Central Bank President Christine Lagarde said. Andrew Bailey, governor of the Bank of England, said the independence of central banks hasn't been eroded by their coordination with governments to help economies through the coronavirus crisis this year. The bond market is underestimating how strongly the U.S. economy will rebound, and that may lead to a “mini taper tantrum” next year, according to John Herrmann at MUFG Securities Americas. El-Erian said that the U.S. central bank has “conditioned the market to such an extent that every time the Fed tries to step back, the market forces them back in” by selling off and tightening financial conditions. Former Bank of England policy maker Paul Tucker agreed that the financial markets have come to expect periodic support from central banks after years in which monetary policy makers effectively delivered just that. “I wait, longing for a central banker to do for financial stability what Paul Volcker did for inflation, which is to break that psychology that you, the capitalist markets, are actually utterly dependent on the Federal Reserve and other central banks, propping up prices come what may,” Tucker said. So, we will see. Clearly, the institutional adjustment to more nearly normal markets will mean hazards for many current participants – changes that affect large stakeholders in the U.S. and global economies. These are efforts producers should watch very closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday October 20, 2020 |
Groups Push Meat Labeling Framework For Cell-Based Meat The North American Meat Institute and the Alliance for Meat, Poultry, and Seafood Innovation are sending a joint letter to USDA and FDA food safety officials on the topic of cell-based meat, urging the agencies to support “a labeling framework that fosters transparency, consumer confidence, and a level playing field while also aligning with longstanding law and policy.” The groups said mandatory labeling requirements should also be informed by “more information and supporting data on finished product characteristics for cell-based/cultured meat and poultry products, particularly those that may require labeling.” The groups urged USDA's Food Safety and Inspection Service issue an Advanced Notice of Proposed Rulemaking to collect the information.
| Rural Advocate News | Tuesday October 20, 2020 |
USDA Reverses Course On Hemp Guidance USDA's Farm Service Agency last week issued a notice to state and county offices on making direct and guaranteed loans to hemp producers for the 2021 growing season and then abruptly pulled that notice back. The original notice indicated that hemp growers could no longer produce the crop under the pilot program that was part of the 2014 Farm Bill. However, the agency quickly withdrew that guidance, noting that “the 'Continuing Appropriations Act, 2021 and Other Extensions Act' authorizes operations to continue to produce hemp under approved 2014 Farm Bill Pilot Programs until September 30, 2021.” Given the extension in the continuing resolution, FSA said, “Additional guidance on making direct and guaranteed loans to hemp producers for the 2021 crop year is forthcoming.”
| Rural Advocate News | Tuesday October 20, 2020 |
Tuesday Watch List Markets After traders get an update of the latest weather forecasts early Tuesday, the U.S. Census Bureau releases its September report of U.S. housing starts at 7:30 a.m. CDT. Traders will watch for a possible export sale announcement from USDA at 8 a.m. and any other news surprises that might emerge. Weather Tuesday will bring a rain-snow mix to the Northern Plains and rain to the eastern Midwest, causing corn harvest delays. Rain will also develop in the southeastern Plains and Delta with harvest disruption and possible damage to cotton.
| Rural Advocate News | Monday October 19, 2020 |
Farm Bureau Reviews State-Level Farm Income The most recent Farm Income Forecast from USDA in early September provided an update on 2020 farm income projections, as well as the first estimates of state-level financial conditions in 2019. Farm cash receipts are forecast to hit a ten-year low in 2020. In 2019, gross farm income from selling crops and livestock, federal support, and other income combined were estimated at $432 billion, rising two percent from the prior year. However, that was down $52 billion from the record-high in 2013. At the state level, farm income was highest in California at $54 billion, two percent higher than the previous year. After California, farm income was highest in parts of the western Corn Belt and Texas. Those areas have high concentrations of feed grain, oilseed, and cotton production, as well as livestock feeding operations. Farm income in Iowa rose four percent in 2019 to almost $32 billion. After accounting for production expenses, state-level net farm income again highest once again in California at $11 billion, a nearly 30 percent drop from 2018, and 27 percent lower than the ten-year average. Similar to gross cash receipts, net farm income was highest in the western Corn Belt and the Southwest states. Ad hoc disaster assistance in 2019 totaled $22.4 billion, up 64 percent from the previous year. *****************************************t***************************************************** CFTC Finalizes Position Limits Rule The Commodity Futures Trading Commission approved three final rules recently, including one regarding positions limits for derivatives. That completed the Commission’s rulemakings related to the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The Commission adopted new and amended federal spot-month position limits for derivatives contracts associated with 25 physical commodities and amended single-month and all-months-combined federal limits for most of the agricultural contracts currently subject to federal position limits. Under the final rule, federal non-spot month position limits were not extended to the 16 new physical commodities. Senate Ag Committee Chair Pat Roberts says he appreciates the Commission’s careful review and consideration of stakeholders’ input, particularly from the nation’s agricultural end-users, as they put the final rule in place. “This rule contains a clear definition of what practices constitute a bona fide hedge and therefore are not subject to position limits,” Roberts says. “This is critical to ensure all commercial end-users can effectively hedge commercial risk.” He thanked Commission Chair Talbert for keeping his word to both Roberts and American agriculture in finalizing the rule. ********************************************************************************************** ASA #SeeSoyHarvest Campaign Highlighting America’s Soybean Industry The American Soybean Association’s #SeeSoyHarvest campaign is in full swing and taking Congressional members on a virtual trip to soybean-producing states across the country. In a news release, ASA says, “If farmers can’t come to the Hill, then the hill must go to the field.” The first two videos in the campaign talked about topics like the value of U.S. soy in creating American jobs, the importance of access to overseas markets for U.S. soy, and how a robust infrastructure keeps transportation costs competitive. The latest video, “Biodiesel for the Future,” talks about biodiesel’s benefits, which include creating a new market for soy oil, diversifying the domestic fuel supply, and reducing greenhouse gas emissions. Videos will continue to be released Tuesdays and Thursdays through October. Bill Gordon, ASA President, says being able to travel to Washington. D.C., and advocate for top soy issues is a big deal to soybean farmers. “We love that the #SeeSoyHarvest Campaign is a workaround during the pandemic to continue sharing priority issues with our legislators, remind them that we are a resource as they make critical agricultural policy decisions, and offer a passenger seat inside our world to see what soy harvest is like on the farm,” Gordon says. More information about the videos can be found on the ASA’s social media pages. ********************************************************************************************** The U.K. Says Trade Talks with EU Are “Over” Talks on a Brexit trade deal between the United Kingdom and the European Union are over. Reuters says that’s the opinion of British Prime Minister Boris Johnson, who feels there is no point in carrying on any conversations unless the EU fundamentally changes its stance on several issues. Johnson’s spokesman says, “The trade talks are over. The EU has effectively ended them by saying that they do not want to change their negotiating position. The only way it will be worth continuing the talks is if the EU makes fundamental changes to its negotiating stance.” The EU had said its negotiators would travel to London for further talks this week as planned. Johnson’s spokesman says the Prime Minister feels there is no reason for the EU negotiator to make the trip unless “he’s prepared to discuss all of the issues based on legal texts in an accelerated way, without the UK being required to make all of the moves.” The UK is also asking the EU to be more willing to discuss some of the practical aspects of trade, such as “travel and haulage.” ********************************************************************************************** U.S. Ethanol Production Hits Five-Week High The Energy Information Administration says U.S. ethanol production hit its highest level in five weeks, while inventories reached the largest number seen since the end of August. Ethanol output in the seven days before October ninth averaged 937,000 barrels a day, up from 923,000 the previous week. The EIA says it’s also the most ethanol production since September fourth. The Midwest, which far and away produces the most ethanol in the country, reached an output of 900,000 barrels of ethanol a day, up from an average of 881,000 barrels, and was the region’s highest output since late July. East coast production jumped to an average of 10,000 barrels a day, up from 6,000 the previous week. Rocky Mountain output was unchanged from the prior week, producing an average of 10,000 barrels a day. Gulf Coast production took the biggest dive from the previous week, coming in at an average of 9,000 barrels per day after averaging 17,000 barrels a day, with the drop likely due to the effects of Hurricane Delta. The EIA also says inventories increased last week to 20 million barrels. That’s up from 19.6 million barrels the week prior and the largest amount of ethanol in storage since late August. ********************************************************************************************** China Leading U.S. Corn Buyer Early in Marketing Year A recent buying spree means China is running away with the top spot on the U.S. corn buyer list six weeks into the marketing year. China has purchased 10.4 million tons for delivery during 2020-2021, twice as large as the sales to date for Mexico, which is usually the number one U.S. corn purchaser. “Our top customer for the current crop year is off to a very rapid start,” says Ryan LeGrand, CEO of the U.S. Grains Council. “The phase one trade agreement is a factor, but Chinese importers are also practical and will buy what they need when they need it, and the price is right for them.” The USDA says 1.1 million tons of the corn purchases have shipped to China, and the rest of the 10.4 million tons remains on order. Exporters have sold 4.7 million tons of corn to Mexico for delivery this marketing year, and 941,000 of those tons are in Mexican hands. Mexico has been the top market for U.S. corn for several years now. During the last marketing year, Mexico imported about 14.5 million tons, while China brought in about 2.3 million tons.
| Rural Advocate News | Monday October 19, 2020 |
Washington Insider: Joblessness and COVID The American economy is showing fresh signs of deceleration, the New York Times said this week. It is being hammered by layoffs, a surge in coronavirus cases and the lack of fresh aid from Washington. The article cited the Labor Department's Thursday report that 886,000 people filed new claims for unemployment benefits last week, an increase of nearly 77,000 from the previous week. Adjusted for seasonal variations, the total was 898,000. The rise follows the announcement of layoffs by major companies, including Disney and United Airlines, in recent weeks and a continuing impasse between Republicans and Democrats over another round of aid for the economy. A recent jump in coronavirus infections, principally in the Midwest and Western states, only added to the grim outlook. “It's discouraging,” Ian Shepherdson, chief economist at Pantheon Macroeconomics said. “The labor market appears to be stalled, which underscores the need for new stimulus as quickly as possible.” The economy had rebounded strongly in late spring and early summer as lockdowns eased in many parts of the country and employers brought back workers from furloughs. But those recalls have slowed, even as federal stimulus efforts have waned. In past recessions, 800,000 new claims for state unemployment insurance in a week would have been considered extraordinary. But over the last 30 weeks, that figure has become a floor, not a ceiling. The latest numbers “point to a lot of churn in the labor market, and it appears the rate of firings has picked up,” said Michael Gapen, chief U.S. economist at Barclays. More layoffs are expected as sectors like leisure and hospitality are increasingly affected. In some states, restaurants have been able to salvage some business by serving diners outside but that option likely will disappear in many areas as winter approaches. “The course of the virus determines the course of the economy,” said Diane Swonk, chief economist at the accounting firm Grant Thornton. “You can't fully reopen with the contagion so high” and as federal aid is waning. A federal program set to expire at the end of the year, Pandemic Emergency Unemployment Compensation, is seeing a surge in new applications. It provides 13 weeks of extended benefits after the end of regular state payments, which typically last 26 weeks. In the week that ended Sept. 26, the most recent period with available data, nearly 2.8 million people were getting the extended benefits, a jump from fewer than two million the previous week, the Times said. That increase was roughly equal to the decline in the number collecting state benefits. But managing and overseeing those benefits, which are administered by the states, isn't so easy, experts say. “The transition from regular state benefits to P.E.U.C. is not going smoothly,” said Heidi Shierholz, senior economist and director of policy at the Economic Policy Institute, a left-leaning research group. The Times examined in greater detail the cases of several workers and their responses to the economic pressures they face in struggling industrial sectors — and especially the tactics some workers who are caught between an unforgiving job market and uncertain prospects for help from the government have been able to use. However, in some places, recipients of state unemployment benefits haven't been notified of their eligibility for the federal extension and aging computer systems have slowed the processing of applications. Thus, for workers facing the end of regular benefits, the extended payment programs have proven to be a lifeline which now appears increasingly threatened. The Times article — along with many others — looked toward the end of the federal supports with growing concern. If it is not extended by Congress, “we're going to see a disaster,” Shierholz said. “There will be a huge drop in living standards and an increase in poverty as well as downward pressure on economic growth.” So, we will see. Almost every economic analysis in recent months has observed that central aspects of the economic outlook depend crucially on the degree to which the coronavirus is controlled — even as the outbreak is increasingly virulent in a growing number of states. The result is increasing concern as anti-virus efforts are increasingly facing political confrontations and election fights intensify — trends producers should watch closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Monday October 19, 2020 |
USDA to Soon Start Compliance Reviews On CFAP 1 The Farm Service Agency (FSA) will soon start compliance reviews on applications submitted by producers for the Coronavirus Food Assistance Program 1 (CFAP 1). The agency said in a notice to state and county offices that it will be working with the National Ag Statistics Service (NASS) to “randomly identify a statistically sound number of CFAP applications for review.” The agency also said it was “aware” that some state and county offices have “questioned the validity of applicant certifications” on some CFAP 1 enrollment forms (Form AD-3114). The agency said state and counties would be able to add any applications to the list of those selected by the national office that they believe should be reviewed for compliance. States and counties have until October 23 to submit applications for the spot checks beyond those randomly selected at the national level for spot checks. FSA also conducted spot checks on the Market Facilitation Program (MFP), basing those reviews on specified percentages of MFP applications where payments were $100,000 or more and for those paid less than $100,000.
| Rural Advocate News | Monday October 19, 2020 |
FSA Sending Out Annual CRP Payments Totaling $1.68 Billion Contract holders are receiving $1.68 billion in rental payments under the Conservation Reserve Program (CRP) for the 21.9 million acres enrolled in the program. USDA said the enrollment total at the end of September was 21.9 million acres, with contracts on 5.35 million acres expiring as of September 30. With contracts on 3.4 million acres set to start October 1, that would put CRP enrollments at around 19.95 million acres. There were also another 425,777 acres that were enrolled under continuous signup 53 that ended August 21. USDA data indicates that most of those contracts have a start date in Fiscal Year (FY) 2021 as the latest update indicated that just over 30,000 acres had a contract start in FY 2020. That would put total CRP acres as FY 2021 starts at around 20.35 million acres. Under the 2018 Farm Bill, the cap on CRP acres rose to 25 million for 2021, up from 24.5 million in 2020. Contracts on another 3 million acres are scheduled to expire as of September 30, 2021 with another 4 million acres to expire as of September 30, 2022. This would suggest another general CRP signup could be in the offing for FY 2021.
| Rural Advocate News | Monday October 19, 2020 |
Monday Watch List Markets Monday's routine will look familiar to many with an early check of the latest weather forecasts for several crop areas, followed by a pause at 8 a.m. CDT to see if USDA has a new export sale announcement. USDA's weekly grain inspections report is due out at 10 a.m., followed by the crop progress report at 3 p.m. CDT. Weather Snow is in store for the Northern Plains Monday with a line of showers and thunderstorms indicated for the southeastern Midwest. These areas will have harvest disruptions. Dry conditions will be in place elsewhere with no drought easing in the southern Plains. Temperatures will vary from cold north to warm southeast.
| Rural Advocate News | Friday October 16, 2020 |
AFBF Moves 2021 Convention to Virtual Platform The American Farm Bureau Federation announced Thursday that its 102nd Annual Convention will be held online. The announcement follows the cancelation of all events through January 31, 2021, at the San Diego Convention Center, where the convention was scheduled to take place. American Farm Bureau Federation President Zippy Duvall says, "While we are saddened to not meet in person for this convention, we are eager to bring this event safely to farm and ranch homes across the country." The 2021 American Farm Bureau Virtual Convention planned January 10-13, 2021, will bring together farmers, ranchers and industry experts. The online event will offer American Farm Bureau Convention favorites from the Ag Innovation Challenge and YF&R competitions to the Ag Foundation Book of the Year and the anticipated Farm Dog of the Year. Registration for the 2021 American Farm Bureau Virtual Convention will open later this year and will be free to all attendees. Further details on the event can be found at fb.org/events. ************************************************************************************ USDA Issues $1.68 Billion in CRP Payments The Department of Agriculture is issuing $1.68 billion in payments to agricultural producers and landowners for the 21.9 million acres enrolled in the Conservation Reserve Program. Announced Thursday, the payments provide annual rental payment for land devoted to conservation purposes. Farm Service Agency Administrator Richard Fordyce says, “CRP is one of the many ‘tools’ that USDA offers to producers and private landowners to help best manage sensitive lands.” Through CRP, farmers and ranchers establish long-term, resource-conserving plant species, such as approved grasses or trees, to control soil erosion, improve water quality, and enhance wildlife habitat on cropland. Farmers and ranchers who participate in CRP help provide numerous benefits to the nation’s environment and economy. Signed into law in 1985, CRP is one of the largest private-lands conservation programs in the United States. Meanwhile, CRP participants with contracts effective beginning on October 1, 2020, will receive their first annual rental payment in October 2021. ************************************************************************************ United Farm Workers File Lawsuit over USDA Suspending Labor Report United Farm Workers this week filed a lawsuit against the Trump administration for suspending a farm labor survey. The Department of Agriculture last month announced the intention to suspend the Agricultural Labor Survey. USDA claims the public can access other data sources for the data collected in the survey. The Agricultural Labor Survey provides quarterly statistics on the number of agricultural workers, hours worked, and wage rates. Number of workers and hours worked have been used to estimate agricultural productivity, while wage rates have been used in the administration of the H-2A Program and for setting Adverse Effect Wage Rates. The lawsuit filed in Fresno federal court by the United Farm Workers and UFW Foundation alleges the notice will, "send ripple effects throughout the farm labor market, ultimately resulting in many U.S. farmworkers being paid less." The lawsuit seeks a preliminary and permanent injunctive relief preventing USDA from suspending the Farm Labor Survey. ************************************************************************************ USDA, USTR Seek Experts for Agricultural Trade Advisory Committees The Department of Agriculture and the U.S. Trade Representative’s Office are accepting applications for new members to serve on seven agricultural trade advisory committees. Members of the Agricultural Policy Advisory Committee advise USDA and USTR on operating existing U.S. trade agreements, negotiating new agreements, and on other trade policy matters. Members of six Agricultural Technical Advisory Committees provide technical advice and guidance on international trade issues that affect both domestic and foreign production in specific commodity sectors. To be considered for candidacy, applicants must have significant expertise in both agriculture and international trade matters. Committee members, who serve four-year terms, represent a cross-section of U.S. food and agricultural stakeholders. They must be U.S. citizens, qualify for a security clearance, and be willing to serve without compensation for time, travel, or expenses. The committees hold frequent conference calls and generally meet in Washington twice a year. Application information is available online at fas.usda.gov. ************************************************************************************ Wheat Export Values Firm on Increased Futures, Export Value Wheat futures prices have reached unexpected heights recently. Higher futures prices usually pressure export basis values when farmers sell wheat into the rally because that increases exportable U.S. wheat supplies. However, U.S. Wheat Associates points out the market is undergoing a completely different phenomenon. Extremely tight elevation capacity out of the Gulf and Pacific Northwest due to massive exports to China is sustaining high wheat export basis values, despite increased farmer selling. Soft Red Winter futures are up 11 percent over the last month to recently $5.94 a bushel, the highest level since December 2014. U.S. Wheat Associates Market Analyst Claire Hutchins says grain traders generally agree that the run-up in futures prices is attributed to technical buying. That’s where managed money or commodity funds buy significant amounts of U.S. wheat futures contracts with the expectation that the contracts will gain value over time. Hutchins expects export basis levels to stay at these higher levels through January, assuming that Chinese buying remains strong. ************************************************************************************ NASDA to host 29th Annual Tri-National Agricultural Accord NASDA will virtually host the 29th Annual Tri-National Agricultural Accord Meeting next week, October 20-22. Expecting the largest ever attendance, delegates from the state and provincial departments of agriculture from the United States, Mexico, and Canada will gather to discuss implementation of the U.S.-Mexico-Canada Agreement, COVID-19 response, African swine fever, and gene editing, among other topics. The U.S. delegation lead, currently at 32 states strong, is NASDA President and Kentucky Commissioner of Agriculture Ryan Quarles. The Canadian delegation will be led by Manitoba Minister of Agriculture & Resource Development Blaine Pedersen and the Mexican delegation will be led by Hidalgo Secretary of Agricultural Development Carlos Muñiz (moo-knee) Rodríguez. The Tri-National Agricultural Accord represents a longstanding commitment among the senior state and provincial agricultural officials of Canada, the United States, and Mexico to work together collaboratively on agricultural trade and development issues. The current arrangement is rooted in a U.S./Canada exchange dating from 1984.
| Rural Advocate News | Friday October 16, 2020 |
Washington Insider: More Pressure on Huawei Bloomberg is continuing to following closely U.S. efforts to limit Chinese competition in global communications technology markets and is reporting this week that Huawei Technologies Co., already being squeezed out of Europe's vast market for the next generation of telecom equipment, is under siege in another fast-growing business: cloud computing. U.S. officials have been lobbying European lawmakers and industry leaders to use Western companies – while shunning Huawei – to build data centers and offer infrastructure to handle the growing tide of information. Now, as part of a European tour last week, State Department Under Secretary Keith Krach met executives including Deutsche Telekom AG CEO Timotheus Hoettges and Meinrad Spenger, head of Spanish telecom carrier MasMovil, “to urge them to ditch Chinese vendors of cloud infrastructure” on data-security concerns. “Look at this as an extension of that 5G,” Krach said. “Clouds are really important, whether it's in the service cloud or in data centers themselves. This is a big deal.” Bloomberg is noting that increased pressure from Washington is affecting one of Huawei's fastest-growing businesses. China's largest technology corporation by sales has in past years has accumulated an impressive roster of clients, including Deutsche Telekom, France's Orange SA and Spain's Telefonica SA. It's now seeking to expand its reach to customers such as oil companies, power grid operators and logistics providers. While Alibaba Group Holding Ltd. operates a larger cloud business and WeChat-operator Tencent Holdings Ltd. isn't far behind, Huawei appears to be more vulnerable given the U.S. administration has managed to convince some governments in the region to exclude its 5G networking gear. Europe's cloud infrastructure is a $12.4 billion business that grew 33% this year from 2019, according to market researcher IDC. U.S. players dominate, led by Amazon.com Inc.'s AWS and followed by Microsoft Corp., IBM, Google and Oracle Corp. “Chinese players like Alibaba and Tencent are not making huge inroads into the European market,” according to IDC's Carla Arend. As European telecom firms are seen as slowly turning away from Huawei for their 5G infrastructure, U.S. pressure is seen as “already working in the cloud,” Bloomberg says. Orange CEO Stephane Richard told analysts in July that the company's cloud built on a Huawei infrastructure was “likely no longer relevant.” “Clearly today, the Huawei Cloud infrastructure is not necessarily the one we're going to be promoting in Europe,” he said. Orange's Huawei-built cloud is currently used by the European Space Agency and car-maker PSA. Just days before Richard's call with analysts, Orange signed a cloud deal with Google. Deutsche Telekom declined to comment on its CEO's meeting with Krach and its cloud-business plans. The company, whose biggest sales come from its T-Mobile unit in the U.S., has cloud partnerships with Cisco, Microsoft, OVH and Amazon's AWS. It also has an offer based on Huawei infrastructure called “Open Telekom Cloud” for small and medium-sized companies. While Huawei is struggling, U.S. companies are thriving, Bloomberg said. Nokia Oyj on Wednesday signed a five-year deal to move its IT infrastructure onto Alphabet Inc.'s Google Cloud. The U.S. provider also recently won a multiyear deal to store Renault SA's manufacturing data, marking the U.S. tech company's first major industrial cloud deal in France. “Huawei is losing market share in Europe,” said Jim Lewis, Director of Technology Policy Program at the Center for Strategic and International Studies in Washington, DC. “I think its brand has been damaged. Their handset sales continue to do well, but in infrastructure they are being squeezed out of the developed world.” U.S. sanctions also appear to have jeopardized Huawei's supply chain. A U.S. ban on chip sales to Huawei kicked in Sept. 15, disrupting its wireless, handset and cloud offerings. In 5G, the UK has imposed a full ban, while France has devised rules making it riskier for operators to use Huawei equipment, without banning it outright. Telefonica, which retracted plans to use mainly Huawei for its 5G, sells a cloud application with the Shenzen company in Spain, Brazil, Argentina and Chile. It also has partnerships with Google, SAP and Microsoft. Krach cited Telefonica as one of the 50 telecom operators committed to the U.S. “clean network” plan. Huawei is far from defeated in Europe, however. Last week, it opened an 8,000-square foot research center in an upscale Paris neighborhood. Local telecom champion Orange said it will selectively keep parts of Huawei's infrastructure in its offerings. But for now, the U.S. is maintaining pressure on its European counterparts. “All these companies that have cloud businesses and data centers that use Huawei, they understand that in terms of 5G, sophisticated smartphones and their servers, they are going to be out of chips,” Krach said after his eight-country European tour. So, we will see. It is increasingly clear that the administration is continuing its pressure on China and that nation's push into global technology markets – and that the administration appears to be willing to continue to offer expensive subsidies for agricultural producers who are on the front lines of that trade fight. Still, these battles tend to be long and contentious and should be watched especially closely by producers as they intensify, Washington Insider believes.
| Rural Advocate News | Friday October 16, 2020 |
Mnuchin Said More Needs To Be Done On China Trade While there has been progress in rebalancing the trade relationship with China, Treasury Secretary Steve Mnuchin said Wednesday that still more needs to be done. “China has a large, growing middle class, over 300 million people. If U.S. companies and U.S. workers can compete for that business, it's one of the largest opportunities,” Mnuchin said in remarks to a conference conducted by the Milken Institute. “If we can't compete for that business fairly, then they should not have free access to the U.S. system. This needs to be a fair, reciprocal trading relationship.” However, Mnuchin did not offer any indication of what would be pursued with China on trade in a second Trump term in office.
| Rural Advocate News | Friday October 16, 2020 |
Trump Touts Farmer Aid, Ethanol In Iowa Campaign Stop President Donald Trump on Wednesday spoke at a “Make America Great Again” rally at the Des Moines International Airport, talking up the administration's actions on ethanol and on farmer aid money. “Nobody has ever done (more) for Iowa and the Farm Belt and the farmers and all,” Trump declared. “I saved ethanol. Ethanol is safe.” Trump told the packed crowd, "You have a tremendous influence and a tremendous power and you've never let me down." Democratic presidential nominee Joe Biden and Trump were tied at 47% among likely voters in Iowa, according to a Des Moines Register/Mediacom poll released September 22. During his speech Wednesday, Trump also cited a poll released earlier in the day by Focus on Rural America that showed him leading Biden by six percentage points, 50% to 44%. Trump made a direct appeal to the state's farmers, saying that he was responsible for $28 billion in aid designed to help offset damage stemming from his trade war with China. “I hope you remember that on November 3,” Trump said.
| Rural Advocate News | Friday October 16, 2020 |
Friday Watch List Markets After several export sale announcements the past week, many will be watching USDA's weekly sales report at 7:30 a.m. CDT. At 8:15 a.m. CDT, the Federal Reserve will release its estimate of September industrial production, followed by the University of Michigan's consumer sentiment index at 9 a.m. CDT. Traders will continue to watch weather forecasts closely for several important growing regions. Weather Friday will be mostly dry and cool across primary crop areas, generally favorable for harvest and wheat planting. Precipitation will be confined to isolated light rain and snow showers in the far northern Midwest and widely scattered showers in the Delta and Texas coast. Freezing conditions are noted in much of the central and southern Plains and Midwest. Moderate snow is indicated for the far Northern Plains Friday evening.
| Rural Advocate News | Thursday October 15, 2020 |
China Purchases More U.S. Corn as Fears of Shortages Increase Private exporters report more large sales of U.S. corn to China. The Department of Agriculture Wednesday reported two large export sales, one of 420,000 metric tons and another totaling 264,000 metric tons for the new 2020-21 crop year. China needs to continue increased corn purchases to reach the lofty targets included in the Phase One agreement with the United States. However, China is still behind pace to do so this year. Meanwhile, more fears of corn shortages in China are developing. Corn futures hit a new record-high this week of 2,595 yuan, valued at $385.14 per metric ton. China's corn output is expected to fall this year after typhoons flattened crops in some parts of the country, further stoking supply concerns after Beijing ran down its massive state stockpiles over the last several years, according to Reuters. A market expert says, “The stockpile has been sold out,” adding, “The market strongly expects supply shortages.” ************************************************************************************ Enrollment Begins for 2021 ARC, PLC Farmers have until March 15, 2021, to enroll in the Agriculture Risk Coverage, or Price Loss Coverage programs for the 2021 crop year. The enrollment period opened this week for the risk management programs, known as ARC and PLC. The key Department of Agriculture safety-net programs help producers weather fluctuations in either revenue or price for certain crops. USDA says more than $5 billion in payments are in the process of going out to producers who signed up for the 2019 crop year. ARC provides income support payments on historical base acres when actual crop revenue declines below a specified guaranteed level. PLC provides income support payments on historical base acres when the effective price for a covered commodity falls below its reference price. For more information on ARC and PLC, including two online decision tools that assist producers in making enrollment and election decisions specific to their operations, visit fsa.usda.gov, or contact your local USDA service center. ************************************************************************************ WTO Rules Boeing Subsidies Merit EU Tariffs The World Trade Organization This week ruled U.S. subsidies to Boeing merit tariffs from the European Union. The European Union already has a list of expected tariffs, including various fish and aquaculture, onions, potatoes, and various forms of different fruits, vegetables and tree nuts. U.S. Trade Representative Robert Lighthizer criticized the ruling. Lighthizer stated, “While we disagree with certain aspects of its valuation, the more important point is that the arbitrator did not authorize any retaliation for subsidies other than the Washington State tax break.” In April 2020, Washington State fully repealed the tax rate reduction, the only provision found in the WTO compliance proceeding to be an inconsistent subsidy that harmed the EU. The issue dates back more than a decade. After many years of seeking unsuccessfully to convince the EU and four of its member States to cease their subsidization of Airbus, in 2004, the United States brought a WTO challenge to EU subsidies. The EU responded by challenging subsidies to Boeing by the United States. ************************************************************************************ Pilgrim's Pride Reaches Settlement on Price-Fixing Charges Pilgrim's Pride will pay more than $110 million in a plea agreement related to a chicken price-fixing investigation. The company entered a plea agreement with the Department of Justice Antitrust Division with respect to its investigation into the sales of broiler chicken products in the United States. In the plea agreement, which is subject to the approval of the United States District Court of Colorado, Pilgrim's and the Antitrust Division agreed to the fine for restraint of competition that affected three contracts for the sale of chicken products to one customer in the United States. The agreement does not recommend a monitor, any restitution or probationary period, and provides that the Antitrust Division will bring no further charges against Pilgrim’s in this matter, provided the company complies with the terms and provisions of the agreement. Pilgrim’s Pride CEO stated in the announcement, “Pilgrim’s is committed to fair and honest competition in compliance with U.S. antitrust laws.” ************************************************************************************ Trump Announces Subcabinet to Modernize Water Resource Management President Donald Trump this week signed an executive order seeking to modernize water management and infrastructure. The order creates a Water Policy Committee that the White House calls the Water Subcabinet. The subcabinet will be co-chaired by the Secretary of the Interior and the Environmental Protection Agency Administrator. The committee also includes the Secretaries of Agriculture, Commerce, Energy, the Secretary of the Army, and the heads of other agencies. Of note for agriculture, the order seeks to improve coordination between state and federal governments and communities, farmers, ranchers and landowners, to “develop voluntary, market-based water and land management practices and programs that improve conservation efforts, economic viability, and water supply, sustainability, and security.” USDA Undersecretary Bill Northey says, “USDA has already taken the lead to invest in America’s wetlands,” adding that work improves water quality, soil health and wildlife habitat. The new effort will develop a national water strategy to ensure the reliability of water supplies, water quality, water systems, and water forecasting. ************************************************************************************ Study Promotes Food Security During Pandemic As the spread of coronavirus continues to disrupt the U.S. economy, low-income households face a higher risk of food insecurity. This risk is more pronounced in families with school-age children who rely on food assistance programs. As part of a grant from the Foundation for Food and Agriculture Research, researchers studied emergency food provisions that serve children and families in five U.S. cities during the pandemic. While the federal government expanded funding for school breakfast and lunch programs and other food assistance programs in the spring of 2020, there was no federal mandate that the programs continue, or guidance for carrying them out. Thus, local governments devised their own plans to provide emergency food services to low-income families, to varying degrees of effectiveness. The results found that the success of emergency local programs depends on cross-sector collaboration among stakeholders, adaptable supply chains and addressing gaps in service to increased risk populations. The research concluded that more robust guidance from the federal government may improve the effectiveness of the responses.
| Rural Advocate News | Thursday October 15, 2020 |
Washington Insider: WTO to Allow More Tariffs on US Products The New York Times and others are reporting this week that the WTO on Tuesday gave the European Union permission to impose tariffs on $4 billion worth of American products annually. The award is in retaliation for illegal subsidies given to the U.S. plane maker Boeing. The Times said the decision “could result in levies on American airplanes, agricultural products and other goods.” The finding, which stems from a 16-year fight, follows a parallel case that the United States brought against Europe over subsidies to its largest plane maker, Airbus. Last year, the U.S. imposed tariffs on European planes, wine, cheese and other products with WTO permission. The decision affected up to $7.5 billion of European exports annually. It remains to be seen whether the new tariffs will persuade the United States and Europe to come to a negotiated settlement – or merely inflame relations and result in higher costs on businesses and consumers on both sides of the Atlantic, the Times said. The European Union has repeatedly appealed to the United States to remove its tariffs, but American officials say Europe has not taken the necessary actions to stop its Airbus subsidies. The tariffs will not go into effect immediately. The EU needs to request authorization from the WTO to actually impose the levies, which it can do at an Oct. 26 meeting or it could request an earlier session which would require 10 days' notice. The European Commission last year issued a preliminary list of American products that it could choose to tax, including aircraft, chemicals, citrus fruit, frozen fish and ketchup. The tariffs, when American companies are reeling from the coronavirus pandemic, would be especially painful for Boeing, which is already struggling from a pair of devastating crises. Both Boeing and Airbus had earlier announced plans to cut more than 10 percent of its global work force amid a steep decline in travel, which forced airlines to delay and scale back plans to buy planes. Both Boeing and Airbus plan to cut more than 30,000 jobs in all. Boeing also is still struggling with fallout from the 737 Max, a star of the company's fleet, which has been grounded worldwide since March 2019 after two crashes killed 346 people. In January, the company estimated that the grounding, which could be lifted in the coming months, would cost it more than $18 billion. The company is also contending with quality concerns related to the 787 Dreamliner, a wide-body jet designed for long-distance flights. So far this year, Boeing customers have canceled 438 orders for the Max, with hundreds more orders removed from its books because of the low likelihood that they will be fulfilled, the company said Tuesday. After accounting for new sales and cancellations, Boeing has lost a net 381 orders for the year. The WTO decision on Tuesday focused on a Washington State tax break provided to Boeing and worth about $100 million a year. Lawmakers there repealed the tax break this year with Boeing's support, but the WTO said the subsidy had nevertheless harmed Airbus between 2012 and 2015. Airbus contends that Boeing continues to receive other preferential tax treatment from the state. “Airbus did not start this dispute, and we do not wish to continue the harm to the customers and suppliers of the aviation industry and to all other sectors impacted,” Guillaume Faury, the company's chief executive, said. “It is time to find a solution now so that tariffs can be removed on both sides of the Atlantic.” Boeing said it was “disappointed” that Airbus and the European Union had pursued the tariffs even after the tax break's repeal – but said the company hoped that both would focus “on good-faith efforts to resolve this long-running dispute.” The European Union had asked the WTO to authorize more than $8.5 billion in annual tariffs, while the United States said they should not exceed $412 million. U.S. Trade Representative Robert Lighthizer said “the United States is determined to find a resolution to this dispute that addresses the massive subsidies European governments have provided to Airbus and the harm to U.S. aerospace workers and businesses.” Valdis Dombrovskis, the European Commissioner for Trade, said that he has been “engaging with my American counterpart, Ambassador Lighthizer, and it is my hope that the U.S. will now drop the tariffs imposed on EU exports last year,” he said. “If it does not happen, we will be forced to exercise our rights and impose similar tariffs.” Ole Moehr, an associate director at the Atlantic Council's GeoEconomics Center, said that, in the short run, there were likely to be more barriers to trade than before, but that the ruling might ultimately “open the door for a trans-Atlantic trade détente.” “Both sides are waiting until the election is settled to re-engage and depending on the outcome we could see a ratcheting up of tensions before any potential deepening of trade ties,” Moehr said. “The Airbus-Boeing dispute is one of the keys to the entire trade relationship and today's decision, combined with the recession triggered by the pandemic, may change the calculus over the long term.” So, we will see. These very large trade disputes have the potential to affect trade far beyond the products that are the immediate focus – and, once again, both sides are deeply dug in regarding this particular fight, as they are on others. The U.S.-EU trade relationship will likely involve additional conflicts producers should watch closely as they emerge in the coming months, Washington Insider believes.
| Rural Advocate News | Thursday October 15, 2020 |
FSA Reminds Producers ARC/PLC Signup for 2021 Started This Week Signup for the Ag Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2021 crop year started Tuesday, October, 13, USDA's Farm Service Agency said. Signup for the programs ends March 15, 2021. Options include electing coverage and enrolling in crop-by-crop ARC-Count or PLC, or the ARC-Individual for the entire farm. Election changes for 2021 are optional, FSA noted. For the 2022 and 2023 crop years, producers will be able to make a new election during those signups. While enrollment started for the 2021 ARC/PLC programs, USDA has begun processing payments under the ARC-County and PLC program on covered commodities that triggered payments for 2019 crops. Those payments total $5 billion. Under PLC, payments were triggered for the following commodities: barley, canola, chickpeas (small and large), corn, dry peas, grain sorghum, lentils, peanuts, seed cotton and wheat. Oats and soybeans did not trigger payments for the 2019 crop year.
| Rural Advocate News | Thursday October 15, 2020 |
Pilgrim's Pride Announces Plea Agreement In Broiler/Chicken Sales Case Pilgrim's Pride announced late Tuesday that they have entered into a plea agreement with the Department of Justice Antitrust Division relative to the investigation of U.S. poultry companies regarding the sale of broiler chicken products. Pilgrim's Pride agreed to a fine of $110.5 million for “restraint of competition that affected three contracts for the sale of chicken products to one customer in the United States,” the firm said in a release announcing the agreement. Pilgrim's Pride would not face any further charges in the matter provided it complies with the terms and provisions of the agreement. “Pilgrim's is committed to fair and honest competition in compliance with U.S. antitrust laws,” said Fabio Sandri, Pilgrim's CEO. “We are encouraged that today's agreement concludes the Antitrust Division's investigation into Pilgrim's, providing certainty regarding this matter to our team members, suppliers, customers and shareholders.”
| Rural Advocate News | Thursday October 15, 2020 |
Thursday Watch List Markets Thursday's lineup is different than usual due to Columbus Day, but still includes weekly U.S. jobless claims and an update of the U.S. Drought Monitor, both out at 7:30 a.m. CDT. At 9:30 a.m., the U.S. Energy Department releases natural gas inventory, followed by its report of weekly energy inventories at 10 a.m. The National Oilseeds Processors Association releases its estimate of September soybean crush later Thursday morning. USDA's weekly export sales report will be released Friday morning. Weather Light rain showers are in store for the eastern Midwest Thursday. Other primary crop areas will be dry with favorable harvest and wheat planting conditions. Freezing temperatures are indicated for portions of the Plains and Midwest overnight Thursday into Friday morning.
| Rural Advocate News | Wednesday October 14, 2020 |
UN Report: Huge Rise in Climate Disasters A United Nations report confirms how extreme weather events have come to dominate the disaster landscape in the 21st century. Between 2000 and 2019, there were more than 7,300 major recorded disaster events claiming 1.23 million lives, affecting 4.2 billion people, resulting in approximately $2.97 trillion in global economic losses. This is a sharp increase over the previous twenty years. Between 1980 and 1999, 4,200 disasters were linked to natural hazards worldwide. UN Secretary-General António Guterres (guh-ter-rez) responded, “COVID-19 has shown us that systemic risk requires international cooperation,” adding good disaster risk governance means acting on science and evidence. Much of the difference is explained by a rise in climate-related disasters, including extreme weather events. The last twenty years have seen the number of major floods more than double, to more than 3,200, while the incidence of storms grew from 1,400 to just over 2,000. The report "The Human Cost of Disasters 2000-2019" also records major increases in other categories, including drought, wildfires and extreme temperature events. ************************************************************************************ NMPF: All Dairy Farmers Should Sign Up for DMC The National Milk Producers Federation urges all dairy farmers to sign up for the Dairy Margin Coverage Program. Enrollment in the program administered by the Department of Agriculture opened Tuesday. NMPF cites the ongoing COVID-19 crisis, and the expectation of volatile dairy margins in the next year, in the need for DMC protection. NMPF President and CEO Jim Mulhern says, “Coronavirus-related volatility in dairy markets is expected to continue well into 2021, with DMC payments a possibility.” DMC, the main risk-protection tool for dairy farmers enacted in the 2018 farm bill, is designed to promote stable revenues and protect against financial catastrophe on some or all of a farmer’s milk. Despite forecasts in late 2019 predicting that DMC assistance would not be needed by farmers in 2020, margins instead fell to their lowest levels in more than a decade in the first half of this year, triggering payments that kept many dairies afloat. NMPF says DMC coverage offers certainty in times of need, allowing for better financial planning and faster payment when necessary. ************************************************************************************ New Program Seeks to Close Gaps in US Hemp Supply Chain High Grade Hemp Seed this week introduced a Farm Partner Program seeking to make consistent, compliant production a reality for the U.S. hemp market. Co-created by Center Pivot Group, the new Farm Partner Program will provide an infrastructure for hemp producers that guarantees a price for hemp flower at harvest. The harvested hemp must be grown in accordance with guidelines laid out in the partnership agreement. The program will roll out immediately in the U.S., primarily in California, Colorado, Minnesota., New York, Oregon, and Texas, before looking towards international markets. Initially, the partnership will be open to experienced hemp farmers who purchase High Grade Hemp Seed genetics. Contracts for biomass will be based on the trading value of hemp seed at purchase, with a revenue split after harvest between High Grade Hemp Seed and the farmer. According to Global Market Insights, the worldwide market for CBD is expected to reach $89 billion by 2026. ************************************************************************************ AEM Releases September 2020 Ag Equipment Sales Numbers All segments of ag equipment sales grew in September 2020, continuing a positive trend for the year, according to the Association of Equipment Manufacturers. U.S. total farm tractor sales rose 21.6 percent in September compared to 2019, while combine sales grew 8.2 percent. Four-wheel-drive units increased for the second month in a row in September, up 21.4 percent, cutting the year-to-date deficit almost in half. For Canada, September tractor sales were up across all segments as well, leading to an overall gain in tractor sales of 25.1 percent for the month and 8.9 percent year to date. Combines sales grew 9.5 percent for the month, while year to date unit sales remain 9.4 percent behind their 2019 pace. Curt Blades, Senior Vice President of Ag Services for AEM, says, "we're cautiously optimistic that this year may end up strong despite all of the headwinds in the market." AEM is the North America-based international trade group representing off-road equipment manufacturers and suppliers worldwide in agriculture and construction-related industry sectors. ************************************************************************************ Green Plains Sells Remaining Cattle Business Green Plains Inc. Tuesday announced the sale of its remaining 50 percent joint venture interest in Green Plains Cattle Company. The company sold its share of the venture to a group of investment funds that include AGR Partners and StepStone Group, among others, for approximately $80 million. Green Plains entered the cattle feeding industry in June 2014, with the purchase of Supreme Cattle Feeders, a 70,000-head feedyard in Kansas. Over the past six years, Green Plains Cattle Company grew to become the fourth-largest cattle feeder in the United States with a total capacity of more than 355,000 head of cattle across six feedlots in Colorado, Kansas and Texas. CEO Todd Becker stated the sale allows the company to “redeploy capital to support our long-term objective of building a technology-focused biorefining platform, producing sustainable, high-value, high-protein ingredients the market need.” Green Plains Inc. is a diversified commodity-processing business with operations that include corn processing, grain handling and storage and commodity marketing and logistics services. ************************************************************************************ National FFA, DEKALB Partner on Winning Has Roots Scholarship The National FFA Organization and DEKALB brand corn will unite on October 18 at the NASCAR race in Kansas. The partnership includes the unveiling of the DEKALB FFA Ford Mustang driven by Clint Bowyer, with dual historical wings for both the FFA emblem and DEKALB. FFA and DEKALB are focused on improving the future of agriculture, and together will offer students the opportunity to qualify for the Winning Has Roots scholarship. The scholarship will help one qualified student fund their continued education. The scholarship amount will be determined by the number of laps Bowyer completes at the Hollywood Casino 400. A base amount of $6,400 is to be awarded to the recipient, with an increase of $14 for every lap Bowyer completes. If all 267 laps are completed, the scholarship will increase to $10,138. If Bowyer wins the race, the scholarship will be increased to $14,000. Final scholarship amount, details and next steps will be announced following the October 18 race.
| Rural Advocate News | Wednesday October 14, 2020 |
Washington Insider: IMF Meets as Global Recession Threats Grow The International Monetary Fund and World Bank are holding their annual meetings, with both calling on the Group of 20 largest economies to “extend a freeze in debt payments from the world's poorest nations that's set to expire at year end.” Bloomberg is reporting this week that “the guardians of the global economy will meet this week under the cloud of the worst recession since the Great Depression—at the same time the recovery increasingly depends on development of a coronavirus vaccine.” The IMF has been encouraging governments to spend whatever they need to confront the crisis, even while warning that “debt as a percentage of GDP will rise to about 100% for the first time.” Fund officials earlier this month proposed reforms to debt restructuring for countries that struggle to meet obligations, a burden expected to rise as the pandemic batters economies. Debt vulnerabilities will be a key theme of the meetings, according to first deputy managing director Geoffrey Okamoto. The G-20 agreed in April to waive billions of dollars in repayments by poorer nations until the end of the year under the Debt Service Suspension Initiative. However, the World Bank now says this isn't enough and wants borrowings reduced to prevent a bigger fallout. The IMF has also been working to figure out how to transfer existing reserve assets known as special drawing rights from rich countries that don't need them to poorer nations that do. A proposal to create $500 billion in SDRs was blocked in April by the U.S., the fund's biggest shareholder, which criticized the plan as “inefficient.” The report cites Tom Orlik, Bloomberg's chief economist who says that “with the virus count rising again in Europe, and stalled stimulus negotiations in the U.S., a better than expected third quarter is becoming a worse than expected fourth. Looking into 2021, “hopes for a strong rebound depend on containing the second wave of infections, a stimulus breakthrough in Washington DC, and widespread delivery of a vaccine by mid-year.” The report cycles through details of the outlook for selected regions and, especially toward Friday when a number of U.S. economic indicators will be released including for September retail sales and industrial production and the Michigan consumer sentiment survey for early October. Looking to Asia, the calendar includes the scheduled return in China from the “Golden Week Holidays” with trade data on Tuesday expected to show the export recovery continuing and inflation data on Thursday likely to show a moderation in price growth. Indonesia, Singapore, South Korea and Sri Lanka have monetary policy meetings scheduled through the week. On Thursday, a speech from the Reserve Bank of Australia Governor will be closely watched for any signals he's preparing to add stimulus, while employment data for September will be released. As the report considers conditions in Asia, Europe, Middle East, Africa, it notes that any surprisingly bad reading of UK labor-market data this week will likely convince a minority of skeptics that more stimulus from the Bank of England is all but inevitable. By contrast, data in Sweden, which adopted much lighter virus restrictions than the rest of Europe, will reveal whether the trend of decreasing joblessness there will continue. Also, in eastern Europe, Poland, the Czech Republic, Romania and Serbia all release inflation data in the days ahead. Central bank officials from across Europe are expected to take part at the IMF and World Bank meetings. In addition, European Central Bank Chief Economist Philip Lane and Governing Council members Francois Villeroy de Galhau, Robert Holzmann and Pablo Hernandez de Cos speak at an event on rising public debt and how to cope with it. Turkish data is likely to show that the nation ran a current-account deficit for a ninth straight month, as households hoard imported gold and foreign currencies to protect against lira depreciation and inflation. In Latin America, the IMF last week urged Mexico to boost government stimulus to speed up a weak recovery and output and manufacturing figures posted Monday should underscore that point. However, in Brazil, a less stringent lockdown and the government's massive income support has buoyed demand, suggesting the August economic activity reading out Thursday will be consistent with that of a gradual recovery. While inflation is picking up again across the region, it has never gone away in Argentina: analysts expect monthly rates of just under 3% and annual rates near 40%. Chile's economy is struggling, Bloomberg says, but the central bank's key rate is at a record-low 0.5%. It expects policy makers to keep it there for a seventh month when they meet Thursday. So, we will see. Clearly, many of the trends being evaluated depend heavily on the success of efforts to control the ravages of the pandemic — including a new round of payments for U.S. producers — important efforts that producers should watch closely as they proceed, Washington Insider believes.
| Rural Advocate News | Wednesday October 14, 2020 |
WHIP-Plus Remains Lawmaker Focus USDA last Friday finally released some information about the much-delayed and complex Wildfire and Hurricane Indemnity Program-Plus (WHIP-Plus) program, with promises for more info ahead. But Sen. Jon Tester, D-Mont., said that while USDA's announcement was “better late than never,” the fact it took nearly a year to get to this point was “unacceptable.” While lamenting he should not have to “hold FSA's feet to the fire just to get them to follow the law and do right by folks in production ag,” he pledged he will be “keeping the coals hot and ready so Montana farmers don't get left out in the cold. Disaster relief needs to make it into the pockets of these producers immediately — no more delays.” USDA announced the end of signup will be October 30, but it has approved the use of a register even though they stressed that is not an extension of signup as no more names can be added to a register after close of business October 30.
| Rural Advocate News | Wednesday October 14, 2020 |
CFAP Payouts Continue to Rise Payments under the Coronavirus Food Assistance Program 1 (CFAP 1) totaled $10.22 billion as of October 11, including $5.0 billion for livestock, $2.6 billion for non-specialty crops, $1.8 billion for dairy, $769 million for specialty crops and $108 million for aqua, nursery and flora crops. As for CFAP 2, USDA said that payments as of October 13 total $4.5 billion as of October 13, including $2.4 billion in acreage-based payments, $1.3 billion for livestock, $452 million for dairy, $376 million for sales commodities and $109 million for eggs/broilers. By commodity, $1.4 billion has gone for corn (21.2% of the total), $1.0 billion for cattle, $534 million for soybeans and $452 million for milk. On a state level, $449 million has been paid out in Iowa, $352 million in Illinois, $347 million in Nebraska, $343 million in Minnesota, and $277 million in Wisconsin.
| Rural Advocate News | Wednesday October 14, 2020 |
Wednesday Watch List Markets On Wednesday, the Labor Department's report of U.S. producer prices at 7:30 a.m. CDT is the only official item on the docket. Traders will continue to monitor the latest weather forecasts and watch for any news of export sales. The Energy Department's weekly inventory report will be released Thursday, due to Columbus Day. Weather Light rain is in store across the Northern Plains and the northern Midwest Wednesday, bringing some delay to harvest. Other crop areas will be dry with favorable harvest conditions. Southern Plains wheat fields have no rain indicated during the balance of the week. In the Pacific Ocean, La Nina shows strengthening to moderate intensity.
| Rural Advocate News | Tuesday October 13, 2020 |
U.S. Dairy Advances Journey to Net Zero Carbon Emissions by 2050 The Innovation Center for U.S. Dairy Monday unveiled the Net Zero Initiative. The industry-wide effort will help U.S. dairy farms of all sizes and geographies implement new technologies and adopt economically viable practices. The initiative is a critical component of U.S. dairy’s environmental stewardship goals. The plan is endorsed by dairy industry leaders and farmers to achieve carbon neutrality, optimized water usage and improved water quality by 2050. The organization also announced a key milestone on its journey toward carbon neutrality, an up to $10 million commitment and multi-year partnership with Nestlé to support the initiative and scale access to environmental practices and resources on U.S. farms. The goals include becoming carbon neutral or better, optimize water use while maximizing recycling, and improve water quality by optimizing utilization of manure and nutrients. Officials say dairy companies and farms are already contributing to the goals in individual ways, and the dairy community will continue those efforts through the U.S. Dairy Stewardship Commitment. ************************************************************************************ AEM Announces Sustainability Council The Association of Equipment Monday announced a Sustainability Council. The council is comprised of leaders from AEM member companies. The council will help advance AEM member-efforts in addressing issues of sustainability and provide a framework for the adoption of best practices and innovation. Curt Blades, senior vice president of Ag Services at AEM, says, "The Sustainability Council will work to spark ideas for establishing sustainability priorities for the equipment manufacturing industry and provide a framework that supports best practices for a more viable world." The association has worked to address societal and safety issues on behalf of the industry for more than a century. Those efforts include the health and well-being of the industry, economic growth and security and industry innovation. The announcement states, “We recognize our industry’s connection to the natural environment and are dedicated to minimizing our operational impact, adding, “our future as an industry depends on the responsible use of natural resources.” ************************************************************************************ Study: COVID-19 Present Opportunity for Online Agricultural Retailers COVID-19 is having a huge impact on farmers' purchasing practices, according to new research by leading global consultancy, McKinsey & Company. The survey of financial decision-makers at farms across Europe reveals that 95 percent of farms are considering adjusting purchasing behavior to minimize physical interactions in response to the pandemic. Digital purchasing may provide the answer, with McKinsey uncovering an increase in both farmers' desire to use digital channels to make product-purchase decisions, up from 51 percent in 2019 to 87 percent post-COVID-19, and their desire to use digital channels to make actual purchases reaching 69 percent. However, researchers say only 22 percent of farmers surveyed have made an online purchase over the past 12 months as of May. As attitudes shift in response to the COVID-19 pandemic, companies in the agriculture industry have an opportunity to accelerate their online presence, work out omnichannel strategies, and perhaps even change their business models to better meet farmers' needs. ************************************************************************************ 2021 National Biodiesel Conference and Expo Goes Virtual The National Biodiesel Conference and Expo is going virtual for the 2021 event January 18-21. The event is going online to share the latest biodiesel and renewable diesel industry news, highlight key speakers, and showcase industry sponsor companies. The virtual event will be accessible to everyone, sharing the industry’s message from coast to coast through a new, safe format that will rise to meet the needs of all attendees. The event is one of many in early 2021 pivoting to a virtual platform due to COVID-19 concerns. NBB CEO Donnell Rehagen says, “we can't wait to kick off a new year in 2021 with our members and key industry partners during our first-ever virtual conference.” The conference includes topics on low-carbon fuels, bioheat, the Renewable Fuel Standard, and the changing landscape for diesel vehicles, among many others. Registration is open for the 2021 National Biodiesel Conference & Expo online at biodieselconference.org. ************************************************************************************ No Fort Worth Stock Show and Rodeo in 2021 The Fort Worth Stock Show and Rodeo's executive committee voted unanimously last week to cancel the 2021 Show scheduled for January 15 through February 6. Event leadership says, “the challenges we face to create practical and enforceable protocols and procedures to comply with COVID-19 guidelines established by the Centers for Disease Control and Prevention are extremely daunting.” More than 30,000 animals are typically exhibited, in addition to approximately 2,300 participants in the competitions and exhibitions. Daily Stock Show attendance can exceed 140,000 people that crowd into buildings at the Will Rogers Memorial Center. Consultations with infectious disease professionals and public health professionals indicate the Stock Show would rank as a “very high risk” for spread of COVID-19, potentially impacting populations and healthcare systems. In a statement, organizers say, “We feel a responsibility to be proactive.” The only other time a Stock Show was canceled was 1943, near the height of World War II. ************************************************************************************ October 13 is Global Fertilizer Day Today, Tuesday, October 13, is Global Fertilizer Day, as proclaimed by The Fertilizer Institute. TFI describes the day as an annual event seeking to educate people about the fertilizer industry and its contribution to feeding the global population. TFI President and CEO Corey Rosenbusch says, “We feed the world, we do it sustainably, and we are proud of the women and men working in our industry to make it all happen.” In years past, facilities have opened their doors to local school students, elected officials and the public for facility tours and presentations. With the ongoing COVID-19 pandemic, the 2020 celebrations have gone mostly virtual. TFI and the Nutrients for Life Foundation are jointly hosting a virtual learning event Today (Tuesday) focused on workforce development by highlighting available career pathways in the fertilizer industry. TFI is also helping the industry spread the word through social media channels. Learn more about the effort online at tfi.org.
| Rural Advocate News | Tuesday October 13, 2020 |
Washington Insider: Wrangling Over a New Stimulus Politico is reporting this week that top Trump administration officials are working to repurpose some previously approved PPP money and that the “latest salvo in a week of twists and turns in talks between the White House and congressional leaders on a new round,” continues to unfold. “Now is the time for us to come together and immediately vote on a bill to allow us to spend the unused Paycheck Protection Program funds while we continue to work toward a comprehensive package,” White House chief of staff Mark Meadows and Treasury Secretary Steven Mnuchin wrote on Sunday to members of the House and Senate. “The all-or-nothing approach is an unacceptable response to the American people.” The letter follows a “number of mixed signals from the administration” over the past week — including a break in stimulus talks by the president — and then a reversal of course on “a variety of relief measures.” House Speaker Nancy Pelosi, D-Calif., on Sunday rejected the latest $1.8 trillion stimulus offer from Mnuchin. Many Senate Republicans, meanwhile, say they are wary of greenlighting yet another hefty relief package. Meadows and Mnuchin reserved their criticism for the Democratic-led House for passing two massive relief bills largely along party lines “instead of compromising with us on bipartisan legislation like we have done in the past.” “We will continue to try to work with Speaker Pelosi and Senator Schumer,” the pair wrote. “It is not just about the top-line number but also about legislation that can be passed by both the House and the Senate and signed into law by the president to help the American people.” The two sides continue to differ on a wide range of issues, including the overall price tag of the next package. The latest Democratic proposal clocked in at $2.2 trillion, about $400 billion more than the latest White House offer, Politico said. White House economic adviser Larry Kudlow said on Sunday that Secretary Mnuchin could make a larger stimulus offer to Democrats after Trump said on Friday that he wanted a larger relief package than either party has offered. In a TV interview, CNN host Jake Tapper had pressed Kudlow on whether the Treasury secretary — who is spearheading the stimulus talks with Pelosi—would offer more than the $2.2 trillion package the House passed earlier this month. “He may. He may,” Kudlow said of Mnuchin. “Secretary Mnuchin is up to $1.8 trillion. So, the bid and the offer is narrowing somewhat between the two sides.” “President Trump actually has always said... as far as the key elements are concerned, the checks, the unemployment assistance, the small-business assistance — we have got to help airlines out—he would go further,” Kudlow added. “So, I think Secretary Mnuchin, who is a very good negotiator, will be carrying the president's message.” The president had abruptly cut off relief talks with House leaders last week, saying his administration wouldn't negotiate until after the election. But soon after that, the president called on lawmakers to approve individual relief measures, including another round of stimulus checks and aid to airlines. And, on Friday, the president said he “would like to see a bigger stimulus package, frankly, than either the Democrats or Republicans are offering.” His comments came amid the new, $1.8 trillion offer by Mnuchin to Democrats. In a letter to House Democrats on Sunday, Speaker Pelosi rejected the latest offer, arguing that it “does not meet the health needs” of the pandemic. She added that until differences on what is in the packages can be bridged, “we remain at an impasse.” Kudlow, meanwhile, downplayed Senate Republican opposition to a new multitrillion-dollar stimulus and indicated that the GOP would go along if a deal were struck between the White House and Democrats. “Don't forget, the Republicans in the Senate put up their own bill a few weeks ago and got 53 votes, I think it was. So, they united,” he said. “I think, if an agreement can be reached, they will go along with it.” Still, during the CNN interview, Kudlow and Tapper sparred over the political dynamics of passing another large aid package. Kudlow blamed Democrats for holding up a deal, but Tapper pressed the White House economic adviser on entrenched resistance from Senate Republicans. “I don't understand the intransigence from my Democratic friends,” Kudlow said. “Well, I'm not talking about your Democratic friends,” Tapper replied. “I'm talking about 20 Senate Republicans who were mad at Secretary Mnuchin and saying that the proposal of $1.8 trillion was way too much. They called it a death knell.” In addition, Majority Leader Mitch McConnell, R-Ky., has expressed skepticism that a massive new relief package could pass the Senate in the coming weeks. He's focused the chamber's attention on confirming Trump's Supreme Court pick, Amy Coney Barrett. Many Republicans have also raised the specter of an expanding budget deficit after lawmakers enacted trillions in pandemic aid in the spring. The Senate GOP rolled out a narrower relief bill in September, but the measure was blocked by Democrats. So, we will see. There appears to be strong support for further coronavirus stimulus, but the fog of politics is almost impossible to penetrate as the runup to next month's elections proceeds. And, the economic uncertainty is intensified by concerns that the recovery may well be slowing more than anticipated. Certainly, these are trends and issues producers should continue to watch very closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Tuesday October 13, 2020 |
Britain Acts To Prevent Vote On Imports Of Chlorinated Chicken, Hormone-Fed Beef The British government will use an “obscure” rule to prevent lawmakers from a vote aimed at blocking imports of chlorinated chicken and hormone-fed beef, according to a report in the Independent newspaper. This would defeat an attempt to give powers to a new watchdog at a time when the EU is worried Britain's post-Brexit trade deals, particularly with the U.S., could ease food and animal welfare standards. The U.S. has long said EU restrictions on both fronts are not based on science. But there has been significant resistance on the topics from within the UK to a degree but more specifically in the broader EU that the UK is in the process of leaving.
| Rural Advocate News | Tuesday October 13, 2020 |
FSA says WHIP-Plus applications due October 30 USDA's Farm Service Agency (FSA) said that October 30 is now the deadline for affected producers to submit applications for the Wildfire and Hurricane Indemnity Program – Plus (WHIP-Plus) for 2018 and 2019 losses. USDA did not originally specify a deadline when the program was announced. FSA will launch a new tool on the farmers.gov WHIP-Plus webpage to help producers understand eligibility for the program and whether they had possible losses in 2018 and 2019. The tool will also allow producers an opportunity to provide information for FSA staff to reach out to them. FSA will announce soon the details for producers who experienced quality loss from 2018 and 2019 natural disaster events authorized in appropriations legislation. There will be a separate signup period for producers reporting quality loss. FSA has received more than 133,000 applications for WHIP-Plus disaster assistance and paid out nearly $1.4 billion in WHIP-Plus benefits.
| Rural Advocate News | Tuesday October 13, 2020 |
Tuesday Watch List Markets Tuesday's reports begin at 7:30 a.m. CDT when the Labor Department releases its update of consumer prices for September. Due to Columbus Day, USDA's weekly grain inspections report will be released at 10 a.m. CDT, followed by USDA's crop progress report at 3 p.m. CDT. The latest weather forecasts continue to get widespread attention as do any reports of export sales that may surface. Weather Dry and warm conditions will cover the entire central and southeastern U.S. Tuesday. This combination will favor row crop harvest along with hurricane damage recovery in the south. Moisture will be confined to rain and some mixed precipitation in the Northwest.
| Rural Advocate News | Monday October 12, 2020 |
U.S. Economy Still Sputtering as Ag Economy Showing Signs of Life CoBank says the U.S. economy has shown signs of improving since late spring. However, progress has slowed, and the economy remains fragile. As another relief package is off and then on the table, for now, CoBank says the economy will remain sluggish through the end of the year. A new Quarterly Report from CoBank’s Knowledge Exchange says rural America is experiencing a dichotomy of improving industry fundamentals and a rise in COVID cases. “The good news, from an economic standpoint, is that many rural industries have begun to turn the corner,” says Dan Kowalski, vice president of CoBank’s Knowledge Exchange Division. “This is particularly true in agriculture. A weaker dollar has supported a price recovery in most agricultural commodities.” He says despite a large number of challenges this year, essential rural industries are finding new ways to survive, and in some cases, thrive.” For example, the U.S. ethanol sector continued to recover during the third quarter, reaching a new baseline level equivalent to 90 percent of pre-COVID demand. CoBank also says recent reductions in ending stocks and expected production have provided a relief rally for U.S. grain farmers. Dairy farmers and the U.S. beef complex also ended the third quarter in a stronger position than when they started quarter number three. *****************************************t***************************************************** Perdue Fined for Hatch Act Violations While Promoting Food Boxes USDA Secretary Sonny Perdue violated the Hatch Act in August because he encouraged voters to support the president’s re-election campaign while promoting food boxes. The event took place in Mills River, North Carolina, and was designed to promote the Farmers to Families Food Box Program. The U.S. Office of Special Counsel sent a letter to Perdue saying the ag secretary has to reimburse the federal government for the cost of the trip to North Carolina. President Trump attended the event, during which Perdue said the people lined up along the motorcade route were “part of those forgotten people that voted for you in 2016.” Perdue also told the president that those same people will vote for him for four more years in 2020. “They understand, under your administration, they’ve not been forgotten,” he added, “and this program is a great example of that.” The Hatch Act bars federal employees, even Cabinet members, from engaging in political activity while at work. “Taken as a whole, Secretary Perdue’s comments during the event encouraged those present, and those watching remotely, to vote for President Trump’s re-election,” the Hatch Act unit’s chief counsel wrote in the letter. The Ag Department didn’t respond to The Hill’s request for comment and didn’t provide an estimate of the cost of the trip that Perdue must now reimburse. ********************************************************************************************** WASDE Lowers Corn and Soybean Harvest Projections and Stocks As expected, the October World Ag Supply and Demand Report shows lower U.S. corn and soybean production, as well as lower stocks of commodities. Corn production is forecast at 14.722 billion bushels, 178 million bushels lower than the previous month. Corn yield declined slightly to 178.4 bushels per acre. Corn supplies are forecast down sharply from last month, thanks to a smaller crop and lower beginning stocks. The corn price rose 10 cents to $3.60 a bushel. Soybean production is forecast at 4.3 billion bushels, down 45 million bushels on a lower harvested area, and the yield is projected at 51.9 bushels per acre, unchanged from last month. Soybean supplies are forecast at 4.8 billion bushels, down 96 million on lower production and beginning stocks. The soybean price is forecast at $9.80 a bushel, 55 cents higher than September, due to smaller supplies and higher exports. USDA says wheat supplies are reduced by 32 million bushels from the previous month on the combination of lower beginning stocks and production. Projected ending stocks dropped by 42 million bushels to 883 million, which would be the lowest ending stocks in six years. The season-average farm price is up 20 cents a bushel to $4.70. ********************************************************************************************** Ethanol Producers Investing in Hand Sanitizer for the Long Term COVID-19 brought about a collapse in fuel demand across the U.S., pushing many ethanol facilities to either slow down or halt their production. Reuters says many ethanol facilities switched their focus from producing ethanol to manufacturing high-grade alcohol hand sanitizers. Demand for the product skyrocketed during COVID as Americans hurried to grab protection against the coronavirus. Several companies are beginning to view the hand sanitizer market as more than a temporary band-aid against lower demand for fuel. Many are making permanent investments in the production of high-grade alcohol that meets standards for producing the sanitizer. Companies like Pacific Ethanol, Green Plains, and Highwater Ethanol have all said they’re boosting the capacity to produce high-grade alcohol. Those announcements seem to indicate that some producers see more profitability in hand cleanliness because of COVID-19 than they do in transportation fuels. Fuel ethanol production around the country has bounced back from the spring doldrums, hitting 923,000 barrels per day, up from 537,000 in April. The Energy Information Administration says that the number is still four percent lower than the same time last year. ********************************************************************************************** Texas Representative Wants FSA Offices “Fully Reopened” Texas Representative Jodey Arrington recently sent a letter to the U.S. Department of Agriculture and Secretary Sonny Perdue regarding Farm Service Agency offices. Arrington is asking the agency to reexamine and update their COVID-19 Standard Operating Procedures and safely reopen their local Farm Service Agency offices. The 19th-District Representative says those offices are critical to our hardworking agricultural producers, providing access to vital programs like the Coronavirus Food Assistance Program and the Wildfire Hurricane Indemnity Program. Their continued closures have caused frustrating and worrisome delays for those seeking the help they need. “While federal reopening regulations were necessary during the early stages of the pandemic, they now effectively prohibit necessary entities from physically reopening and processing vitally important applications for relief programs,” Arrington says. “Our local FSA offices need the flexibility to open and allow our patient agriculture producers access to vital resources.” While ensuring the health and safety of employees is important, Arrington says we must also find a way for these offices to open safely for the sake of the nation’s farmers and ranchers. ********************************************************************************************** Farmers Union Not Happy with CSP Final Rule The USDA’s Natural Resources Conservation Service released their final rule to update the Conservation Stewardship Program, which the agency was directed to do in the 2018 Farm Bill. “With the help of feedback from our agricultural producers and others in the industry, NRCS has prioritized the implementation of the 2018 Farm Bill, including important changes to the Conservation Stewardship Program, which is designed to help farmers put more robust conservation activities in place,” says acting NRCS boss Kevin Norton. National Farmers Union President Rob Larew says there are some improvements in the final rule, especially in its inclusion of soil health as a priority. “However, the rule does not elaborate on how this goal will be achieved,” Larew says in the Hagstrom Report. “We want the agency to provide more specifics about how the program will help farmers build soil health to help sequester atmospheric carbon, increase yields, and prevent erosion.” Another aspect of the rule NFU is concerned about includes the evaluation process giving preference to first-time applicants over previous participants, which Larew says basically penalizes those who’ve taken part in long-term stewardship.
| Rural Advocate News | Monday October 12, 2020 |
Washington Insider: Largest Banks Flush With Cash The nation's largest banks are being more cautious with their lending than they have been in at least the past 35 years, Bloomberg reports. Cash, treasuries and other securities effectively guaranteed by the federal government now make up more than 35% of the combined balance sheets of the 25 biggest U.S. banks, according to the Federal Reserve. That's the biggest share going back to 1985, and is 5.5 percentage points higher than the five-year average. Loans and leases now account for less than half of big banks' books for the first time on record, spurred by what appears to be a combination of lower borrower demand and lenders tightening their standards as the coronavirus pandemic drags on. The cautious stance will fuel debate over whether giant firms are prudently guarding against a worst-case scenario or exacerbating the pain by slowing the flow of credit, Bloomberg said. “The banks have been flooded with deposits and have nowhere to put it,” said Brian Foran, an analyst at Autonomous Research. “Healthy companies don't want to borrow because the future is still uncertain. Struggling companies would like to borrow to stay afloat, but as a bank it's hard lending to those sectors.” Next week, the largest U.S. banks, including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., will report their third-quarter financial results—and will detail their lending activities over the past three months. Investors will be listening for executives' commentary on how their customers are faring during the COVID-19 crisis. The KBW Bank Index has slumped 30% this year, fueled by Citigroup's 44% decline and Wells Fargo & Co.'s 53% drop. The S&P 500, meanwhile, has gained 6.7%. Hopes that U.S. economic growth would quickly rebound following widespread shutdowns in the spring have largely faded, with economists not expecting a turnaround until the second quarter of 2021, Bloomberg said. The pullback in lending comes despite some $525 billion in forgivable small-business loans under the federal Paycheck Protection Program, launched in response to the pandemic. Had the banks kept the mix of loans to securities and cash they've had in the past five years, the flood of deposits would've meant an extra $635 billion of loans for consumers and businesses, the figures suggest. Bankers are arguing that businesses have less need for credit, whether in the form of commercial and industrial loans or commercial real estate financing, according to the latest comprehensive survey of banks' senior loan officers. Households have been clamoring for home mortgages, loan officers said but there's less demand for other forms of financing, such as credit cards and auto loans. When compared with the range of lending standards that have prevailed since 2005, the heyday of lax mortgage requirements, most large banks told the Fed they're stricter now in doling out credit to all types of borrowers, with few exceptions. Almost half of large banks surveyed said that they're about as restrictive as they've ever been in the past 15 years when it comes to providing credit cards to subprime borrowers. PNC Financial Services Group Chief Executive Officer William Demchak told investors last month that his bank's lending probably would fall by close to 5% in the third quarter from the previous three months, a far steeper drop than the roughly 1% decline he predicted in July. More than 800,000 Americans have filed for initial unemployment benefits every week since March, nearly quadruple the weekly average in the previous five years, according to the Labor Department. Almost a quarter of Americans expect someone in their household to experience a pay cut within four weeks, while nearly a third say it's been difficult to pay for usual household expenses, according to the latest Census Bureau survey. Since the end of February, the largest banks' balance sheets have expanded by $1.3 trillion, thanks to a flood of deposits and an ongoing Fed campaign to buy government-backed bonds, mostly through the largest lenders. The banks in turn have channeled that money into growing their stockpile of cash and government-backed securities by $1.1 trillion. At Zions Bancorp NA, there's been virtually no increase in lending aside from forgivable loans to small businesses under the Paycheck Protection Program, President Scott J. McLean said at an industry conference last month. “I'm not going to apologize for our loans being flat to down,” he said. “There's obviously limited economic activity.” So, we will see. In recent days, anti-corona virus stimulus measures have faced increased pushback as legislators attempt to pass new efforts into law. And, in these toxic political moments, any suggestion that the very large banking institutions that are being charged with the delivery of crucial economic interventions are falling short in their responsibilities likely will be the focus of bitter criticism. Thus, producers should watch very closely as next week's report emerges, Washington Insider believes.
| Rural Advocate News | Monday October 12, 2020 |
USDA Publishes Final Rule On Conservation Stewardship Program (CSP) USDA has published the final rule for the Conservation Stewardship Program (CSP) which makes changes to the program called for under the 2018 Farm Bill and also reflects the more-than 600 comments that were received on the initial rule for the program. USDA said that the reduced funding for the program could result in higher environmental benefits since the focus will be on those CSP efforts that provide a higher degree of environmental results.
| Rural Advocate News | Monday October 12, 2020 |
Office of Special Counsel Rebukes Perdue For North Carolina Visit A North Carolina stop by USDA Secretary Sonny Perdue was a violation of the Hatch Act when he urged those at the Mills River, North Carolina, event that they could get four more years of the “decider-in-chief” if they voted for President Donald Trump, according to the U.S. Office of Special Counsel. They said that there will be no disciplinary action against Perdue if he quickly reimburses the government for the travel costs that were paid by the U.S. Treasury. The law generally bars federal employees from engaging in political activities while on duty, but exempts the president and vice president. The Citizens for Responsibility and Ethics in Washington brought the complaint against Perdue. Prior violations of the Hatch Act by Trump administration officials have resulted in the Trump campaign providing the government with reimbursement.
| Rural Advocate News | Monday October 12, 2020 |
Monday Watch List Markets U.S. futures markets are open Monday, Columbus Day, but the federal government is not. USDA's weekly inspections report and Crop Progress report will take place Tuesday, but USDA is planning to put out daily livestock reports. As usual, the latest weather forecasts and any trade news will be watched closely. Weather Showers and thunderstorms will move across the western and northern Midwest Monday with harvest disruption and possible wind damage. Dry conditions will be in place elsewhere. Hot, dry and windy conditions over the weekend further stressed early-developing wheat in the Southern Plains. The Australia Southern Oscillation Index (SOI) 30-day average is plus 12.3, with the 90-day average at plus 8.5. These readings indicate a moderate La Nina in the Pacific Ocean.
| Rural Advocate News | Friday October 9, 2020 |
USDA Announces Biofuels Investment to Increase Sales The Department of Agriculture touted biofuels investments in Iowa Thursday. Agriculture Secretary Sonny Perdue announced USDA has invested $22 million out of the up to $100 million in grants available to increase U.S. ethanol and biodiesel sales. The funds were made available through the Higher Blends Infrastructure Incentive Program to recipients in 14 states. The program helps transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to installing fuel pumps, equipment and infrastructure. The initial $22 million in investments are projected to increase ethanol demand by nearly 150 million gallons annually. USDA plans on announcing the remaining investments in the coming weeks. On the same day, Rural America 2020 flew a plane carrying a banner over select Iowa cities. the banner read, “Trump Sold Out Ethanol for Big Oil.” The group cites Trump administration waivers to oil companies to avoid ethanol requirements that have depressed ethanol demand. ************************************************************************************ Trump Administration Invests $72 Million in Distance Learning and Telemedicine Agriculture Secretary Sonny Perdue Wednesday announced $72 million in grants to help rural residents access health care and educational opportunities. The Department of Agriculture says the investments will benefit more than 12 million rural residents. Perdue stated, “Increasing access to telemedicine and distance learning is critical to building healthier and more resilient rural communities.” USDA is funding 116 projects through the Distance Learning and Telemedicine grant program. The program helps health care and education institutions buy the equipment and software necessary to deploy distance-learning and telemedicine services. Perdue announced investments in 40 states, Puerto Rico and the Virgin Islands. One of the noted projects in Texas, the Epic Charter School is receiving a $969,000 grant to link urban schools in Oklahoma and Texas with rural schools, students and community partners in both states. In Kentucky, the Bluegrass Care Navigators will use a $500,000 grant to establish a regional telemedicine network with a hub site at its headquarters in Lexington. ************************************************************************************ Red Meat Muscle Cut Exports Strong in August August exports of U.S. beef and pork muscle cuts were above last year's strong volumes, according to the U.S. Meat Export Federation. Variety meat exports were lower than a year ago, due in part to the lack of available labor required to harvest and export some items. Beef muscle cut exports were the largest in more than a year at 89,100 metric tons, up 3.5 percent, while export value increased slightly from a year ago to $611 million. August muscle cut exports also set new records in China and Indonesia and beef exports to Canada continued to gain momentum. Combined pork and pork variety meat exports were down two percent in volume and ten percent lower in value at $528 million. However, U.S. pork exports remain on a record pace in 2020. USMEF President and CEO Dan Halstrom calls the trend in muscle cuts “very encouraging and especially critical” as production continues to rebound from the interruptions earlier in the year. ************************************************************************************ DMC Enrollment Begins Tuesday Enrollment for the Dairy Margin Coverage Program opens Tuesday. The Department of Agriculture announced the enrollment period this week, set for Tuesday, October 13, through December 11, 2020. The Dairy Margin Coverage Program, known as DMC, is a voluntary risk management program that offers dairy producers protection when the difference between the all-milk price and the average feed price, the margin, falls below a certain dollar amount selected by the producer. DMC payments triggered for seven months in 2019 and three months so far in 2020. More than 23,000 operations enrolled in DMC in 2019, and more than 13,000 in 2020. To determine the appropriate coverage level for a specific dairy operation, producers can utilize the recently updated online dairy decision tool. The decision tool is designed to help producers calculate total premium costs and administrative fees associated with participation in DMC. For more information and to access the decision tool, visit farmers.gov. ************************************************************************************ Six More Indicted on Antitrust Charges in Broiler Chicken Investigation Six additional defendants were indicted for their roles in a conspiracy to fix prices and rig bids for broiler chicken products. The indictment also charges one defendant with making false statements and obstruction of justice. A federal grand jury in the U.S. District Court in Denver, Colorado, returned the superseding indictment this week. A Justice Department official says. “Executives who choose collusion over competition will be held to account for schemes that cheat consumers and corrupt our competitive markets.” The three-count superseding indictment charges ten executives and employees at major broiler chicken producers for their participation in the conspiracy from 2012 through early 2019. The six additional defendants include William Lovette, former President and CEO of Pilgrim's Pride. Others are also from Pilgrim's Pride, Claxton Poultry Farms, and Perdue Farms. This case is the result of an ongoing federal antitrust investigation into price-fixing, bid-rigging, and other anticompetitive conduct in the broiler chicken industry. ************************************************************************************ Wisconsin Mink Test Positive for Coronavirus Dead mink on a Wisconsin mink farm have tested positive for SARS-CoV-2 infection, the virus that causes COVID-19 in humans. The National Veterinary Services Laboratories confirmed the infection Thursday, the first among Wisconsin’s mink population. All animals are now quarantined on the farm, meaning no animals or animal products may leave the premise. The response includes appropriate carcass disposal, cleaning and disinfecting the animal areas, and protecting human and animal health. Wisconsin is the second state with confirmed SARS-CoV-2 at a mink farm. Utah confirmed its first cases on August 17. There is currently no evidence that animals, including mink, play a significant role in spreading SARS-CoV-2 to humans. However, people infected with the virus can spread it to mink and other animals. People suspected or confirmed to have COVID-19 are encouraged to avoid contact with pets and other animals while they are completing their home isolation to protect the animals from infection.
| Rural Advocate News | Friday October 9, 2020 |
Washington Insider: Dovish Fed Struggles Bloomberg says this week that Federal Reserve Chair Jerome Powell has done almost everything in his power to demonstrate his desire for higher inflation. Asked whether the Fed wants to get unemployment back down to 3.5% or below — a degree of labor market tightness that previous Fed chairs feared would set off spiraling inflation — he said, “Yes, absolutely.” Still, Bloomberg thinks Powell's pro-inflation efforts are “not yet” working. If the financial markets were taking the chairman at his word, long-term interest rates would be “leaping” to compensate investors, Bloomberg argues. Inflation that's chronically too low remains a perplexing challenge for central banks, which have an easier time fighting inflation that's too high. If Powell can't convince consumers, companies, and investors that the Fed can raise inflation, bad things could happen, the report says. A Japan-like deflationary psychology could set in as households and businesses put off buying big-ticket items — whether cars or machine tools — in the expectation that prices will fall. What's more, low inflation and soft demand for loans have combined to push interest rates to the floor, which robs the Fed of its No.â??1 tool for fighting recessions. To avoid outright deflation the European Central Bank cut its key short-term interest rate below zero in 2014. The Bank of Japan followed in 2016. Powell's Fed has resisted going subzero, but it has been the first to embrace overshooting its inflation target to compensate for periods of undershooting. Bloomberg thinks several factors are keeping inflation undesirably low just now, especially the demand suppressing impacts of the pandemic. The year over year price change index for personal consumption expenditures was just 1.4% in August. Meanwhile, the economic recovery is faltering as coronavirus relief programs have become less certain. In a speech on Oct. 6, Powell warned of “tragic consequences” for racial and wealth disparities if relief isn't extended. The Fed's new inflation policy is in part an admission that the old rules no longer apply. Policymakers used to assert with confidence that an unemployment rate below 6% would lead to high inflation. Yet even when unemployment hit a low of 3.5% in February, inflation remained below the 2% target. The August Fed policy changes are unusually dovish policies for the world's most powerful central bank and are making U.S. monetary policy “as easy as it's ever been in modern times, or even in nonmodern times,” says Padhraic Garvey, head of research for the Americas at ING Bank NV. But will it work? David Wilcox, a former Fed official who's a senior nonresident fellow at the Peterson Institute for International Economics, calls it “a very substantial step forward.” Allison Boxer and Joachim Fels, both of Pimco, a big bond investor, are skeptical. For the Fed, promises are easy to make but could be hard to keep, Bloomberg thinks. When it comes time to let inflation run above 2%, there are likely to be hard-to-ignore shrieks of pain from the bond market and people living on fixed incomes. The new approach policymakers settled on recently involves more discretion than the Fed has exercised since the Greenspan era. Vagueness about the strategy likely helped Powell and Vice Chair Richard Clarida, who was in charge of the policy rethink, achieve consensus between the hawks and the doves on the FOMC. It also gives the Fed some flexibility in case of the unexpected—such as a sharp drop in oil prices that lowers inflation or a widespread crop failure that raises it. For many, the use of “less-specific” objectives is unsatisfying. “I wish it was a little more specific,” says John Taylor, the economist at Stanford and the Hoover Institution whose own rule for setting monetary policy has informed the Fed and other central banks. One observer says, “I do hope they know what they're doing.” He says he's inclined to give Powell the benefit of the doubt: “He seems to have his head on right.” The dream scenario for the Fed is that its messaging works, the economy strengthens, workers earn much-needed raises, consumers open their wallets, and companies are able to raise prices and get back to profitability. There's also a darker scenario that could produce rising prices. In that one, easy fiscal and monetary policies are politically difficult to scale back despite rising inflation caused by worker shortages, trade barriers that cut off vital imports, and other factors. In March, Charles Goodhart of the London School of Economics and Manoj Pradhan of Talking Heads Economics wrote “The coronavirus pandemic, and the supply shock that it has induced, will mark the dividing line between the deflationary forces of the last 30 to 40 years, and the resurgent inflation of the next two decades.” Resurgent? Perhaps. “It will take some time,” Powell said at the Sept. 16 press conference. “It's a slow process, but there is a process there.” Spoken like a thoroughly modern, prudently irresponsible central banker, Bloomberg said. So, we will see. Efforts to manage the money supply are likely to be more difficult and controversial than at any time in recent years, and should be watched closely by producers as the season advances, Washington Insider believes.
| Rural Advocate News | Friday October 9, 2020 |
USDA's Perdue Floats Possible WTO Action On EU Farm-To-Fork Plan USDA Secretary Sonny Perdue has continued to hammer away at the European Union (EU) farm-to-fork (F2F) plan which is aimed at promoting sustainability in agriculture production. Perdue has been consistent in warning the F2F effort could affect global trade flows and negatively impact the ability of agriculture to feed a growing global population. Perdue's focus has been that the F2F effort is based on “subjective matters rather than definitive health and safety matters, and reiterated those views in a press call Wednesday hosted by the U.S. State Department. Perdue said the EU has countered the plan is driven by popular sentiments and demands. But he also issued a warning that while the U.S. did not want to take such an action, he would not rule out heading to the WTO on the effort. “I don't think we like to threaten about those kinds of things. If protectionism does come into play… then WTO courts are one avenue,” Perdue said, adding he wanted to resolve the issues through “diplomacy and the persuasion of both agricultural producers as well as European consumers.”
| Rural Advocate News | Friday October 9, 2020 |
USDA Reports $1.96 Billion Paid Out Under CFAP 2 USDA's Farm Service Agency has released information on payouts made under the Coronavirus Food Assistance Program 2 (CFAP 2), reporting that $1.96 billion had been paid out as of October 6. The total includes $1.1 billion in acreage-based payments, $543.7 million for livestock, $203.9 million for dairy, $103.8 million in payments for sales commodities and $2.8 million for eggs and broilers. By commodity, the payouts in this initial data included $687.3 million for corn, $414 million for cattle, $254.9 million for soybeans, $203.9 million for milk and $120.4 million for hogs/pigs.
| Rural Advocate News | Friday October 9, 2020 |
Friday Watch List Markets After traders look over the latest weather forecasts and pause at 8:00 a.m. CDT to see if USDA has an export sale announcement, all attention will be on USDA's WASDE and Crop Production reports, due out at 11 a.m. CDT. Corn and soybean crop estimates will be updated and lower ending stocks estimates are likely for new-crop corn and soybeans as a result of last week's Grain Stocks report. Weather Friday is the end of a dry week across the central U.S. with favorable conditions for harvest and wheat planting. Warm temperatures will enhance crop and soil drying. The Delta has a different story, with heavy rain and damaging winds on the way from Hurricane Delta.
| Rural Advocate News | Thursday October 8, 2020 |
Coronavirus Relief on Hold President Donald Trump dashed hopes lawmakers could reach an agreement on another catch-all Coronavirus relief package. Trump said the talks were suspended until after the November election. Trump claimed House Democrats “were just playing games” with Republicans and his administration. House Speaker Nancy Pelosi claimed walking away from the talks is another example of Trump, "putting himself first at the expense of the country.” Yet, late Tuesday evening, the President suggested Congress pass stand-alone packages for airline relief, the Paycheck Protection Program and $1,200 stimulus checks. National Farmers Union President Rob Larew responded, “Americans need help, and they need it now,” adding Trump, “must reverse course and work with Congress to preserve our economy and the wellbeing of every American.” The $2 trillion House-passed HEROES Act included several agriculture provisions, such as payments to poultry and dairy farms, and funding for ethanol plants and textile mills. However, a month before the election, it seems any aid is nothing more than a talking point. ************************************************************************************ Group of Ag Leaders Endorse Biden-Harris A group of agriculture and farm leaders offered their support for Joe Biden's presidential campaign in an open letter. The leaders say agriculture is threatened by both environmental and economic challenges. The letter states, "America needs strong leaders who will tackle these challenges and shape policies that encourage agriculture to flourish." The letter adds, "These reasons are why we, a diverse community of scientists, farmers, and agricultural professionals…support Joe Biden and Kamala Harris for President and Vice President of the United States.” The letter includes former Agriculture Secretary Tom Vilsack, former chief ag negotiation Darcy Vetter, and former National Farmers Union President Roger Johnson. Additionally, various farmers, former state officials from Department of Agriculture offices and others, signed the letter. The Hagstrom Report points out that Sarah Garland organized the letter, a scientist in the post-doctoral research program at the Earth Institute of Columbia University. Garland was an intern at the White House Office of Science and Technology Policy during the Obama administration. ************************************************************************************ R-CALF Only National Cattle Organization Opposed to RFID Tags R-CALF USA is the only national cattle organization opposed to a proposal to mandate radio frequency identification eartags starting January 2023. The Department of Agriculture’s Animal and Plant Health Inspection Service proposal would require RFID tags as Official Identification in cattle and bison. R-CALF USA requested APHIS withdraw its proposal because it “unlawfully amends substantive federal law that expressly grants America’s cattle farmers and ranchers the option of using various forms of animal identification.” The group’s comments also point out that the RFID mandate disadvantages cattle producers who reside in states with insufficient packing capacity because those producers will have to incur the costs of higher-priced RFID tags. In its concluding remarks, the group states that APHIS misinterprets the Executive Order by President Trump that the agency claims gives it authority to mandate RFID without a formal rulemaking process. Instead, “the agency is attempting to issue its mandate with a simple notice.” ************************************************************************************ AgCareers Releases Compensation During COVID-19 Report A special report from AgCareers highlights agriculture's workforce and compensation during the Coronavirus pandemic. The special report provides a hyper-focus on the most critical components facing agribusinesses during COVID-19. The topics include workforce planning, wellness/benefit programs and compensation practices related to salary administration for 2020 and 2021. The report finds 81 percent of agribusinesses did not have to make staff changes during the pandemic, and nearly 20 percent increased hiring of permanent and temporary employees. Most agriculture organizations were able to provide consistency regarding salary increases for 2020. Roughly a third of organizations had already implemented 2020 increases before the pandemic. A combined 30 percent of organizations did report being undecided, delaying or canceling previously planned increases. Looking ahead to 2021, companies continue to plan for increases, only 17 percent indicating it was not likely for salaries to increase. The prevalent estimated salary increase budgeted was 2.6 to 3.0 percent. ************************************************************************************ Nobel Prize to CRISPR Scientist Shows U.S. Falling Behind in Gene Editing The National Pork Producers Council says the U.S. Food and Drug Administration has stalled the development of emerging technology with tremendous promise for livestock agriculture. The FDA has claimed regulatory jurisdiction over gene-edited livestock and has stalled the technology in the U.S. for more than two years, according to NPPC. However, the scientists who invented one of the most promising forms of this technology, the “CRISPR/Cas9 genetic scissors,” were just awarded the Nobel Prize. NPPC President Howard A.V. Roth states the Nobel Prize award serves notice that "If we don't move oversight of gene-edited livestock to the USDA, we will have ceded this promising technology to global competitors at the expense of American jobs and our nation's global agricultural leadership position." The National Pork Producers Council has repeatedly called for the U.S. Department of Agriculture to be granted gene-edited livestock regulatory oversight. NPPC says gene editing accelerates genetic improvement that would occur naturally over time by making changes to an animal's own genome. ************************************************************************************ National Dairy Traceability Program Launches in Canada Lactanet Canada this week announced the launch of DairyTrace, the national dairy cattle traceability program for dairy farmers in Canada. Designed and built to be a centralized national system for the management of all dairy cattle traceability data, DairyTrace will provide protection, prosperity and peace of mind to the Canadian dairy industry in the event of an animal health emergency. Alongside the traceability module of Dairy Farmers of Canada's proAction initiative, DairyTrace will support the dairy industry by protecting the economic livelihood of dairy producers and bringing peace of mind to consumers in the event of an emergency. DairyTrace includes a mobile app and on-line database portal, that will streamline and simplify the recording and reporting of animal identification and movement. Under federal regulations and/or proAction requirements, everyone who owns or has the possession, care or control of dairy cattle must record and report animal identity, movement, location, and custodianship information.
| Rural Advocate News | Thursday October 8, 2020 |
Washington Insider: The Losing Battle Against the Trade Deficit Politico is reporting this week that as President Trump enters the final month of his reelection campaign, it's increasingly clear that he has failed at one of the signature goals of his presidency: reducing the U.S. trade deficit. New figures out Tuesday show the U.S. trade gap is on track to exceed $600 billion this year, the highest since 2008, just before the global financial crisis. The monthly deficit in U.S. goods trade with all other countries set a record high in August at more than $83 billion. The administration has blamed the trade deficit on bad trade deals negotiated in the past and unfair trade practices by other countries – but most economists disagree with that explanation. In November 2017, after returning from his first trip to Asia as president, the president promised that “we are going to start whittling that down and as fast as possible." Those 2017 comments seemed to be referring to just the goods trade deficit while ignoring the surplus the U.S. enjoys in services trade. The trade deficit measures the difference between what the U.S. imports and exports as the powerful U.S. economy sucks up goods from around the world. The deficit has grown dramatically from a mere $6 billion in 1975. A variety of factors contributed to the failure to eliminate the gap, which White House trade adviser Peter Navarro predicted in 2016 could be erased in one or two years. But the massive U.S. government stimulus payments to businesses and consumers helped U.S. imports recover faster than exports, pulling down the monthly goods deficit. However, even without the pandemic, the administration's tariff policies for China were never going to turn around the deficit, most economists agree. “Short-term fixes like tariffs don't work,” said Mary Lovely, a senior fellow at the Peterson Institute for International Economics and professor of economics at Syracuse University. “It's magical thinking.” The U.S. trade deficit is fundamentally driven by larger economic factors—like the fact Americans spend more than they save and have to borrow from abroad to finance the difference, Lovely said. Politico also says the administration's $1.5 trillion tax cut in 2017 contributed to that problem by running up the U.S. budget deficit. This year, Congress has approved more than $3 trillion in additional spending to help the U.S. economy recover from the coronavirus pandemic, tripling the budget deficit to $3.3 trillion and pulling the trade deficit along, she said. U.S. Trade Representative Robert Lighthizer on Tuesday defended the administration's trade actions and attributed this year's rise in the deficit to the strength of the U.S. recovery from the pandemic and investors buying gold as a hedge against the crisis. "In spite of the pandemic, our goods deficit is down 2.4% year-to-date, Lighthizer said. He also noted that the bilateral trade deficit with China fell by 17% to $345 billion as importers turned to other countries such as Mexico, Vietnam, Taiwan, South Korea, Japan and members of the EU. For the administration to fundamentally reduce the trade deficit, it needed to address misaligned currency rates, experts say. The Phase One trade deal with China contains enforceable rules against currency manipulation, but it is not clear how these provisions will be enforced. Also, the revised NAFTA agreement with Mexico and Canada includes strong protections for workers' rights. But the fact that labor concerns were not addressed in the China agreement “just shows that the administration is not driven by any principles in this area, but simply by political expediency,” one observer told Politico. The administration hails China's agreement as part of the phase one trade deal to purchase $200 billion more of U.S. goods and services in 2020 and 2021. But the data released on Tuesday show that China is well behind on that goal. U.S. farm exports to China had reached as high as $25 billion annually a few years ago—but they fell sharply after Beijing retaliated against administration tariffs. Now, even with the purchase commitments in the Phase One trade deal, USDA forecasts farm exports to China in the current fiscal year that began on Oct. 1 at $18.5 billion. That's below the $21.8 billion during the president's first year in office. The U.S. agricultural trade surplus has also dwindled under this administration and is projected this fiscal year at just $4.5 billion, down from $21.1 billion in fiscal 2017. Even some longtime China hawks fault the administration's handling of trade. The president's decision to confront Beijing alone, instead of working with allies such as the European Union and Japan, meant that the phase one trade deal failed to address many of the most serious concerns about China's trade practices, said Mike Wessel, who has served on the U.S.-China Economic and Security Review, a watchdog panel created by Congress, since it began in the early 2000s. “We certainly have to advance U.S. interests, but it'd be a lot better and more productive if we did it together,” Wessel said. The administration also failed to implement domestic policies that would encourage production of manufactured goods in the United States, Wessel argued. “China has an integrated structure to achieve the goals laid out in its 'Made in China 2025' plan. It's a holistic government approach. We don't have anything comparable,” he said.? So, we will see. The elements and tone of U.S. trade policies are very important to producers and should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday October 8, 2020 |
Food Industry Officials Downplay Potential o Fresh Disruptions Relative To COVID-19 Another wave of coronavirus-driven closures of meatpacking plants is unlikely because worker testing and safety practices have improved since the spring, the chief executive of JBS USA Holdings Inc. Andre Nogueira said. Meat companies have installed automated temperature checkpoints, distributed safety gear to plant workers and installed partitions between some workstations to catch COVID-19 symptoms and prevent its spread in plants. “I'm pretty confident we are not going to have the size of the disruption we saw in April and May,” Nogueira remarked during a Wall Street Journal Global Food Forum this week. “The number of positives over the last two or three months in the plants has been pretty low.” Others at the forum indicated that changes in supply chains have also factored into expectations that disruptions are not likely to match those seen earlier this year.
| Rural Advocate News | Thursday October 8, 2020 |
Agriculture Regains Trade Surplus As Exports Rise U.S. agricultural exports reached $11.1 billion in August, up nearly 8% from July and the highest level since March when $11.9 billion in U.S. ag goods were shipped. Imports, however, eased to $10.9 billion, down 0.6% from the July mark and counter to the trend seen in overall U.S. trade which saw imports rise by a greater percentage level than exports. But this helped U.S. agriculture regain a trade surplus of $245.6 million, reversing five straight months of trade deficits and in six of the last seven months. This brings cumulative U.S. ag exports for Fiscal Year (FY) 2020 to $123.7 billion against imports of $122.3 billion for a trade surplus of $1.4 billion. To meet USDA's forecast for FY 2020 of $135 billion in exports and $131.7 billion in imports, September exports would need to be $11.35 billion and imports $9.43 billion. With large shipments to China expected to be registered for some key commodities for September, the export target could well be hit. Imports have not fallen under $10 billion since February 2019, which would suggest the import total will surpass USDA's current forecast and further trim the trade balance, but still should result in an annual trade surplus.
| Rural Advocate News | Thursday October 8, 2020 |
Thursday Watch List Markets At 7:30 a.m. CDT, USDA's weekly export sales report, weekly U.S. jobless claims and the latest U.S. Drought Monitor will be released, followed by an update of natural gas inventory at 9:30 a.m. Weather forecasts for North and South America and the Black Sea region are also being followed, as well as any trade news that might surface. Weather Thursday will bring yet another day of dry conditions across all primary crop areas. Harvest and wheat planting have favorable conditions. Dry soils, warm temperatures and strong winds will bring extreme fire risk to the Plains and northern Rockies. Meanwhile, Hurricane Delta in the Gulf of Mexico is consuming all available moisture as it works northward toward landfall on the Louisiana coast Friday evening. Hurricane and flood warnings are now in effect for the U.S. Delta during the coming weekend.
| Rural Advocate News | Wednesday October 7, 2020 |
Farmers Showing More Optimism in Monthly Ag Economy Barometer U.S. agricultural producers became more optimistic again in September. The Purdue University-CME Group Ag Economy Barometer climbed to 156, the highest reading for the index since the pandemic began last winter and 12 points higher than one-month earlier. Since July, the index is up 38 points and is 60 points higher than its 2020 low established back in April. In September, producers were more optimistic about current conditions and the future for agriculture than in August. The Current Conditions Index, with a reading of 142, was 18 points higher compared to a month earlier and the Future Expectations Index rose nine points to a reading of 163. Organizers say The Department of Agriculture’s announcement of the second round of Coronavirus Food Assistance Program payments to producers and the ongoing rally in fall crop prices were likely the two primary drivers behind the improvement. Farmers were also more optimistic about making investments in their farming operation and about the short-run outlook for farmland values than they were in August. ************************************************************************************ Barchart Releases Updated Production and Yield Forecast Barchart released its October production forecast Tuesday, estimating a corn yield decrease compared to the September forecast. The company estimates corn production at 15.1 billion bushels, with a season yield of 178.2 bushels per acre. For soybeans, Barchart estimates production at 4.1 billion bushels, with a season yield of 50.5 bushels per acre. The data represents a decrease in expected yield for corn, relative to the September report, which predicted end of season yield at 178.4 bushels per acre. End of season yield for soybeans remains the same at 50.5 bushels per acre. Available to the public on the first Tuesday of each month during the growing season, the Crop Production and Yield Forecasts provide quick projections before the Department of Agriculture’s World Agricultural Supply and Demand report. In September, USDA projected a corn crop of 14.9 billion bushels, and a soybean crop of 4.3 billion bushels. USDA will release the next monthly WASDE report Friday. ************************************************************************************ Corteva: Dry Conditions May Result in 2021 Herbicide Carryover Injuries Corteva warns farmers current drought conditions in the Corn Belt could cause herbicide carryover in 2021. The concentration of herbicide remaining in the soil at next season's planting may be too high if dry conditions persist. This will depend on herbicide chemical properties, soil characteristics and the weather, according to Pioneer Field Agronomist Bob Berkevich. Additionally, while this season's crop may be well-suited to tolerating the herbicide used, a rotational crop may be susceptible to injury. Emerging plants are more likely to show injury to residual herbicide levels if other stressors, such as compaction or cold, wet soils are also present. Berkevich says farmers cannot do much to change the concentration of herbicides present in the soil. But there are several steps they can take to help reduce the risk of carryover injury, such as reviewing spray records for each field to see what restrictions are indicated or even going so far as delaying planting. ************************************************************************************ NMPF Supports Efforts to Modernize Animal ID and Disease Traceability Requirement The National Milk Producers Federation submitted comments supporting a Department of Agriculture proposal on the use of Radio Frequency Identification Tags. USDA's Animal and Plant Health Inspection Service proposes RFID tags as Official Identification in cattle and bison. NMPF President and CEO Jim Mulhern says, "A national animal identification system can provide immediate access to relevant information in an animal disease or food safety crisis that could endanger the entire dairy chain, while protecting farmers' privacy." The U.S. dairy industry has long advocated modernizing animal ID and disease traceability systems. Farmer organizations, including NMPF, formed a group called IDairy to collectively advance official mandatory animal identification to aid disease traceability. IDairy in received a USDA-APHIS cooperative agreement on premise registration and animal ID education that propelled the use of RFID tags in the U.S. dairy industry. Since 2009, the National Dairy FARM Program, Farmers Assuring Responsible Management, has also recommended use of official RFID tags for all dairy cattle. ************************************************************************************ Below Average Runoff Continues along Missouri River Basin September precipitation was well-below normal in the Missouri River Basin. As a result, September runoff in the upper Missouri River Basin above Sioux City, Iowa, was 69 percent of average. Since January, precipitation in the upper Basin is well-below normal, a stark contrast to the last three years of high water along the river and flooding. 2019 saw historic flooding along the Missouri River, with the Army Corps of Engineers releasing large amounts of water from Gavins Point Dam, destroying levees and flooding farmland. This fall, Missouri River Basin Water Management Division chief John Reemus says, “Releases from Gavins Point Dam are being made to meet full-service Missouri River navigation flow targets.” According to the National Drought Mitigation Center, drought conditions continue to worsen across much of the upper Basin. Wide-spread areas of drought classified as Extreme are evident in Colorado and Wyoming. Moderate to Severe drought conditions are present in large areas of Montana, North Dakota, South Dakota, Nebraska and Iowa. ************************************************************************************ California Wildfires Burn Record 4 Million Acres Wildfires in California have burned a record four-plus million acres this year, an area larger than Connecticut. The figure is more than twice the acreage burned in the previous record year, 2018. Five of the top six fires in California’s modern history have occurred this year, including the largest single fire on record, being the Creek Fire that has burned more than 320,000 acres alone. The California Department of Forestry and Fire Protection reports that there have been over 8,300 fires in the state since the beginning of the year. The Washington Post reports scientists have linked the severity of 2020′s California wildfire season to a combination of human-caused climate change and land-use practices. California Governor Gavin Newsom recently stated, “If that’s not proof point, testament, to climate change, then I don’t know what is.” However, climate change isn’t the only factor. Scientists years of fire suppression policies have allowed vegetation, fuel for the fires, to build up in forests.
| Rural Advocate News | Wednesday October 7, 2020 |
Washington Insider: A Surprising China Defender Across the Trump administration U.S. officials have ramped up their criticisms of China for its international investments and social policies. However, the New York Times is reporting this week that while U.S. Trade Representative (USTR) Robert Lighthizer has for decades been one of China's toughest critics, that has changed. Since brokering a trade deal with Beijing in January, he has “now become one of China's biggest defenders within the administration.” More recently, Lighthizer has criticized several proposed policy measures that likely rankled Beijing, arguing they could disrupt the U.S.-China trade pact that he and President Trump spent more than two years trying to forge. And, he has touted Beijing's efforts to uphold the pact and live up to its end of the deal. These views have brought Lighthizer into conflict with more hawkish members of the administration, including State Department officials who have advocated closer ties with Taiwan, along with members of Congress. Last week, 50 U.S. senators of both parties wrote Lighthizer urging him to begin the formal process of negotiating a deal with Taiwan. “We are confident that a U.S.-Taiwan trade agreement would promote security and economic growth for the United States, Taiwan and the Indo-Pacific as a whole,” they wrote. “We urge the administration to prioritize a comprehensive trade agreement with Taiwan, and we look forward to working with you to secure this framework.” Proponents say dealing directly with Taiwan could help counter some of China's growing influence in technology and commerce. However, Bonnie Glaser, a senior adviser for Asia at the Center for Strategic and International Studies, said concerns over preserving the current trade deal with China were likely to sink the prospects of Taiwan negotiations, at least for the remainder of this administration. “The administration, particularly of course USTR, they're focused like a laser on this trade deal with China,” she said. “The president doesn't want it to fall apart.” The president has said he is “not happy” with China for allowing coronavirus to spread beyond its borders and has ratcheted up punishment on Chinese tech companies, like TikTok and WeChat. Still, he has not “ripped up the trade deal or threatened to take additional trade action against Beijing. In part, that's because he faces pressure—from American banks, businesses and farmers—not to let commercial ties with China deteriorate further, especially right before the election, NYT says. The Times says important U.S. sectors eagerly greeted the signing of the trade deal in January as an end to months of uncertainty as it locked in new access to the Chinese markets for American banks and ag producers, as well as the promise of record purchases of soybeans, hogs and natural gas. However, the Times says those commitments are “widely seen as unrealistic,” and so far, China is on track to purchase just some of the goods it has promised. Still, Lighthizer defends the deal and told a House committee in June that China was giving “every indication” it would uphold the agreement, in spite of coronavirus. Instead, he reserved his harshest criticism for the WTO which he calls “a mess” in need of “radical reform,” and the European Union, which he threatened with more tariffs. Lighthizer's shift in tone is notable, the Times says, given that his reputation as a China critic during a long career in Congress, the executive branch and as a Washington trade lawyer. His history of battling China, including pursuing trade cases against the country and opposing its entry into the WTO was what first ingratiated him to President Trump, who held a similarly dim view of China's trade practices. But more recently, he has intervened to shoot down several policy measures that could have threatened China economically, including efforts by U.S. Customs and Border Protection to impose a sweeping ban on cotton and tomatoes from Xinjiang over concerns that they were made with forced labor by Uighurs and other Muslim minorities detained in camps. Earlier this summer, as the administration sought ways to retaliate against China for its crackdown on Hong Kong, Lighthizer opposed the idea of placing tariffs — similar to those imposed on China — on Hong Kong. He was joined by other analysts who argued that the administration “should take strong action on Hong Kong and Xinjiang but only if those actions have a chance of changing behavior and don't have unintended consequences.” Now, Lighthizer's reluctance to begin trade talks with Taiwan has been increasingly opposed by officials from the departments of State, Defense and Commerce and the National Security Council, NYT said. Not everyone thinks trade talks with Taiwan would be a certain success, but the Times thinks that support in Washington for closer ties with Taiwan is growing. For example, when U.S. Secretary of Health and Human Services Alex Azar traveled to Taiwan in August, he was the highest ranking U.S. official to visit in decades. The hope was that U.S. initiatives would build momentum and pressure on USTR to advance trade ties, said Glaser of the Center for Strategic and International Studies. The State Department “did what they could in their realm of responsibility,” she said. “But at the end of the day, State cannot negotiate trade agreements and that's what Taiwan wants.” So, we will see. Clearly, U.S. relations with China are fragile, in spite of their importance. However, the Chinese markets for U.S. products are very important and efforts to impose changes in that region should be watched closely as the season advances, Washington Insider believes.
| Rural Advocate News | Wednesday October 7, 2020 |
FSA Clarifies Who Is A 'Contract Grower' For CFAP 2 For the Coronavirus Food Assistance Program 2 (CFAP 2), the Farm Service Agency (FSA) has issued guidance to further clarify who is considered a “contract grower” relative to eligibility for the program. “For CFAP 2, 'contract grower' is a person or legal entity who grows or produces an eligible commodity or livestock under contract for someone else,” FSA said. “The contract grower's income is dependent upon the successful production of a crop or livestock or offspring from livestock.” FSA further noted that a contract grower “does not have ownership in the commodity or livestock and is not entitled to a share from sales proceeds of the commodity or livestock.” Using that definition FSA said, “A person or legal entity that raises or grows an eligible commodity under contract and has both ownership and risk of production loss in the commodity or livestock is eligible for CFAP 2.” That definition is key, FSA noted as those signing a CFAP 2 application are “certifying that they have both an ownership share and risk in the commodity or livestock included on the application.”
| Rural Advocate News | Wednesday October 7, 2020 |
CFAP 1 Payouts Pass $10.2 Billion But No CFAP 2 Data Yet Payouts under the Coronavirus Food Assistance Program 1 (CFAP 1) moved up to $10.2 billion as of October 4, according to the Farm Service Agency (FSA). That includes $4.97 billion for livestock, $2.63 billion for non-specialty crops, $1.76 billion for dairy, $743.7 million for specialty crops and $103.8 million for aqua, nursery and flora crops. Iowa continues to lead all states with $968.7 million followed by Nebraska at $715.1 million. California has moved up to the third post at $662.4 million followed by Texas at $629.7 million, Minnesota at $608.6 million and Wisconsin at $522.9 million. Even as farmers are reporting already receiving payments under CFAP 2 where enrollment started September 21, USDA has not made any payment data available. “CFAP 2 data will be available in the coming weeks,” FSA said.
| Rural Advocate News | Wednesday October 7, 2020 |
Wednesday Watch List Markets The U.S. Energy Department will have its weekly inventory report at 9:30 a.m. CDT, including data on ethanol production. The minutes from the latest Federal Reserve meeting will be released at 1 p.m., offering hints of monetary policy. As usual, the latest weather forecasts will get attention along with any trade news that emerges. Weather Wednesday will again be dry across all primary crop areas, favoring row crop harvest and winter wheat planting. The increasing dryness is hindering winter wheat emergence and early development. Temperatures will be above to much above normal.
| Rural Advocate News | Tuesday October 6, 2020 |
Stimulus Talks Remain Hopeful Hopes a COVID-19 stimulus package can be completed before the November election are increasing. With President Donald Trump and many staffers in the White House testing positive for the virus over the last week, Trump has indicated support for a new stimulus package. Trump stated via Twitter over the weekend, the nation "wants and needs" stimulus, directing lawmakers to "work together and get it done." Meanwhile, speaking to CBS's Face The Nation over the weekend, House Speaker Nancy Pelosi indicated, “we are making progress.” Asked if an agreement could come this week, Pelosi says, “that just depends on if they understand what we have to do to crush the virus,” referring to Republicans. The House passed another version of its HEROES Act last week, a $2.2 trillion coronavirus aid package. The legislation includes aid to ethanol plants, livestock producers who had to euthanize animals because of no slaughterhouse capacity, as well as a 15 percent increase in Supplemental Nutrition Assistance Program benefits. ************************************************************************************ USTR Initiates Vietnam Section 301 Investigation The Trump administration Friday announced a trade investigation over two issues related to Vietnam. At the direction of President Donald Trump, the U.S. Trade Representative’s will investigate Vietnam’s acts, policies, and practices related to the import and use of timber that is illegally harvested or traded USTR will also investigate Vietnam’s acts, policies, and practices that may contribute to the undervaluation of its currency and the resultant harm caused to U.S. commerce. As part of its investigation on currency undervaluation, USTR will consult with the Department of the Treasury as to issues of currency valuation and exchange rate policy. Trade Representative Robert Lighthizer stated, “Using illegal timber in wood products exported to the U.S. market harms the environment and is unfair to U.S. workers and businesses who follow the rules by using legally harvested timber.” USTR will issue two separate Federal Register notices this week that will provide details of the investigation. ************************************************************************************ Oil Prices Fall amid COVID-19 Concerns Oil prices lost significant ground last week over concerns about rising COVID-19 cases, including President Donald Trump testing positive for the virus. A barrel of West Texas Intermediate crude oil closed last week at nearly $37 per barrel, a drop from $40.36 last Monday. GasBuddy reports the national average price of gasoline has fallen in the last week, posting a decline of 0.7 cents per gallon over the last week to $2.17. Meanwhile, the national average price of diesel is unchanged from a week ago and stands at $2.38 per gallon. However, Patrick De Hann of GasBuddy says, “Friday saw the highest gasoline demand since Labor Day,” suggesting, “we may see an end to the possibility of future declines.” Government data released last week showed a small decline in oil inventories of two million barrels for the prior week, while remaining about 13 percent above the five-year average for this time of year. Inventories now stand some 70 million barrels, or 16.5 percent, above their year-ago level. ************************************************************************************ AFBF Announces Ag Innovation Challenge Semi-Finalist The American Farm Bureau Federation and Farm Credit recently announced the ten semi-finalist teams in the 2021 Farm Bureau Ag Innovation Challenge. The ten semi-finalist teams were awarded $7,500 each and will compete at the AFBF Convention in January, to advance to the final round. The four finalist teams will receive an additional $7,500 for a total of $15,000. The final four teams will compete live to win the Farm Bureau Entrepreneur of the Year award, for a total of $50,000, and the People's Choice Award for $20,000. AFBF President Zippy Duvall says the semi-finalists are "providing solutions for some of the biggest challenges facing agriculture," adding, "This includes supporting farms, ranches and rural economies affected by the COVID-19 pandemic." The top ten semi-finalist teams will participate in pitch training and mentorship from Cornell University’s SC Johnson College of Business faculty, and network with representatives from the Agriculture Department’s Rural Business Investment Companies. To learn more about the Challenge and the ten semi-finalists, visit fb.org/challenge. ************************************************************************************ Farmers National Company: Land for Sale Near a Record Despite what has been a slower agricultural land market the past few years, the dollar amount of land that Farmers National Company is selling for its clients is near record levels. As of October 1, the company and its agents report actively marketing and selling land worth $300 million. Land being marketed includes good quality tillable cropland of all sizes, recreational land, ranches, pastureland, timberland, rural homes and acreages, and transitional land near urban areas. The amount of land for sale varies by region and by brokerage. Some areas continue to have less for sale than normal, and others are seeing a slight uptick in the amount of land listed for sale. Landowners have been and continue to be making decisions whether to sell now, in early 2021, or to hold onto their land. There has also been a reported increase in farmland interest by investment firms, seeking long-term and stable investment options. ************************************************************************************ NCGA Launches New Women and Mentors Program The National Corn Growers Association Monday announced a new women and mentors program. The first inaugural Women and Mentors Retreat will kick off virtually on October 15. Tara Smith, executive vice president at Michael Torrey and Associates and Kellie Bray, chief of staff at CropLife America, will open the event with a panel delving into mentorship relationships, including how these vital connections lead to career and personal growth. In January, NCGA will host a second virtual session and an in-person meeting in June 2021. The Women and Mentors program provides an opportunity for women looking to find the next steps in their leadership journey to partner with a mentor who has traveled that path, according to the organization. Mentors, who can be of any gender, both foster tomorrow's leaders and learn how to share the wealth of knowledge and understanding accumulated through years of service. NCGA is still accepting applications at NCGA.com.
| Rural Advocate News | Tuesday October 6, 2020 |
Washington Insider: New Reports Emphasize Economic Outlook Uncertainty Bloomberg was mainly downbeat in its evaluation of the global economic outlook this week. It asserted overall that the global economy is entering the “final quarter of its worst year in living memory.” The report emphasized the “darkening outlook for U.S. employment, the impending halt to a United Kingdom furlough and the expiry of a moratorium on German insolvencies” that provided a glimpse of the trouble in store. And, it reported that the International Labour Organisation estimated recently that “the world would lose working hours equivalent to 245 million full-time jobs in the last three months of 2020.” Some of the world's biggest companies across a range of industries announced large layoffs within a 24-hour period last week, Bloomberg reported. Adding to those omens, the UK's main furlough program will end later this month — and a group representing the country's events industry predicts more than 90,000 people will be made redundant in coming weeks. In the UK, renewed clusters of infections underscore the vulnerability of already battered economies to further damage that could ultimately hit livelihoods, Bloomberg said. And, it said that the latest outbreak in Paris may force bars and restaurants to close, while London is at a “tipping point,” according to a local health official. The report said that Bloomberg's own economists see “a second wave of infections in the pandemic, as well as major corporate layoffs in the U.S. and the end of the furlough scheme in the UK that flag the risk that unemployment will rise into year-end. “Bad news for the immediate outlook is also bad news for the medium term, with deeper labor market scars threatening to drag on the recovery — even after a COVID-19 vaccine is eventually found,” Tom Orlik, Bloomberg chief economist said. The report called attention to the upcoming release on Wednesday of the U.S. Federal Reserve of minutes of its Sept. 15-16 meeting of the Federal Open Market Committee that is expected to be “especially important” for Fed watchers, “beginning with details of the debate over the committee's new guidance on the conditions that will be necessary to trigger a rate increase.” The minutes also may reveal whether policy makers discussed increasing asset purchases and continuing to restrict bank dividends. And, there may also be a separate section summarizing discussions that preceded a special August 27 vote on the new framework, under which the Fed will allow inflation to run higher and unemployment to go lower than officials previously had tolerated. In its global scan, the report said that that China is “shut for its Golden Week holidays,” so it focused on trends for the rest of the region. It expects a busy week in Australia with the central bank announcing its interest-rate decision on Tuesday, hours before the government unveils its budget plan. Prime Minister Scott Morrison's government will likely outline additional fiscal stimulus, including infrastructure spending and tax cuts, intended to pull the economy out of its first recession in nearly 30 years. Bank of Japan Governor Haruhiko Kuroda will speak at events in the coming week and his remarks on the economic recovery and the outlook for prices will be closely watched for any signs of less gloom as the central bank prepares for a meeting later this month. Japanese wage and household spending data will offer the latest indication of how the economy is picking up after recent patchy signals. For European Central Bank policy makers including President Christine Lagarde and Chief Economist Philip Lane this week will be a chance to offer any clues on whether the latest disappointing inflation data are enough to move the needle in the debate for extra stimulus. Minutes of the ECB's September meeting will be published Thursday. Investors will also be listening closely to remarks by Bank of England officials for signs of any divergent views on the economic rebound and the potential use of negative rates. Monthly UK GDP numbers are due Friday. In the Nordics, Norwegian central bank chief Oystein Olsen speaks after surprising markets last month with a more dovish forward guidance than anticipated. Later in the week, Norway published its economic output data for August. Central banks in Poland, Serbia and Uganda are expected to keep interest rates unchanged, while Botswana may have room to cut. The report also added that this week's reading of Mexico's consumer confidence may show a fourth month of improvement. In central banking, Peru on Wednesday will pause at 0.25% for a sixth month as the economy begins to turn around, while the minutes from policy makers' September 24 meeting out Thursday may cement bets that Mexico's comfortable holding at 4.25%. Price data this week will show inflation coming off pandemic-lows in Mexico, Brazil and Chile, while still well under target in Colombia. Brazil's retail sales report for August will show monthly and annual gains with some loss of momentum. So, we will see. Amid all the political and economic drivers of uncertainty, the president's health issues will be of primary concern, as will any new U.S. efforts — or the lack thereof — to offset impacts of the COVID — all trends producers should watch closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Tuesday October 6, 2020 |
Canola Group Seeks Approval of the Oilseed As Renewable Fuel Source The U.S. Canola Association has asked the Environmental Protection Agency (EPA) to approve the oilseed as a source of renewable fuel, which could feed an expected surge in demand for raw material from processing plants being developed. In March, the group submitted a pathway petition to EPA to add canola renewable diesel as an eligible renewable fuel standards product, said Tom Hance, Washington Representative for the U.S. Canola Association. The petition is not yet publicly available and is under EPA review, according to Hance. If approved, demand for the oilseed — and potentially its price — could rise and spur more imports from Canada. It could double the amount of Canada's crop that goes into fuel production, according to the Canola Council of Canada.
| Rural Advocate News | Tuesday October 6, 2020 |
OMB Remains Busy Reviewing Agency Plans The Office of Management and Budget (OMB) has completed its review of the EPA plan on the application exclusion zone (AEX) requirements relative to agricultural workers. EPA is proposing changes to the AEZ under the Agricultural Worker Protection Standard. Meanwhile, the Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) last week sent an interim final rule to OMB for review relative to hours of service issues for those transporting ag commodities. The FMCSA developed the rule to address whether, and if so to what extent, they should revise or otherwise clarify the definitions of “agricultural commodity” or “livestock” relative to hours of service (HOS) requirements for drivers. The agency last week wrapped up its review of USDA's plans to alter the Conservation Stewardship Program (CSP) to reflect provisions in the 2018 Farm Bill.
| Rural Advocate News | Tuesday October 6, 2020 |
Tuesday Watch List Markets On Tuesday, the U.S. Census Bureau will release its report on the U.S. trade deficit for August at 7:30 a.m. CDT. Later the same morning, USDA will release more specific data of agricultural exports for August, including ethanol, biodiesel and distillers grains. The latest weather forecasts will also be watched as will any trade news that develops. Weather Dry and open conditions are in store across all primary crop areas Tuesday. This pattern will offer continued favorable row crop harvest and winter wheat planting progress.
| Rural Advocate News | Monday October 5, 2020 |
House Passes Amended Heroes Act The House of Representatives passed a $2.2 trillion coronavirus aid package that Democrats say is an update to the previous $3.4 billion bill that passed in May. The vote was 214 to 207, with 18 Democrats joining all the Republicans who voted against it. The legislation includes aid to ethanol plants, livestock producers who had to euthanize animals because of no slaughterhouse capacity, as well as a 15 percent increase in Supplemental Nutrition Assistance Program benefits. The package incorporates many provisions that the National Farmers Union members requested during the recent virtual fly-in, including support for local and regional meat processing, farm-stress programs, as well as the nutrition assistance. NFU President Rob Larew is urging the Senate to quickly move forward with the final passage. “Throughout the pandemic, Congress and the USDA have worked to provide family farmers and ranchers with the help they need,” Larew says. “These efforts have gone a long way toward keeping farmers afloat during market uncertainty and supply chain disruptions.” However, the NFU points out that the strength of the ag economy depends on the strength of the overall economy and the wellbeing of Americans, so they’re pushing for another economic stimulus package. “The time is now for the Senate and White House to agree on a stimulus package,” Larew adds. ********************************************************************************************** PRICE Act Would Make Changes to Cattle Markets South Dakota Representative Dusty Johnson introduced the Price Reform in Cattle Economics Act. The House Ag Committee member says the bill would increase transparency in the cattle market, as well as improve risk management for producers and support new and existing meat processors. The Hagstrom Report says he wrote the bill as a response to recent extreme cases of market volatility after the Tyson Plant fire in Holcomb, Kansas, in 2019, as well as during COVID-19. Johnson says cattle country is hurting and hasn’t fully recovered from the recent challenges. “USDA has laid out multiple areas where Congress could implement real solutions to improve the market,” he says. “The PRICE Act is the answer to many of the years-long challenges producers have battled.” He says cattle producers want a fair market and fair prices. “Congress needs to step up for cattle country,” Johnson adds, “which is what the bill will do.” The PRICE Act is supported by groups like the American Farm Bureau Federation, South Dakota Cattlemen’s Association, and the National Cattlemen’s Beef Association. ********************************************************************************************** Animal Group says Pork Sellers are Failing to End Sow Confinement World Animal Protection, a global animal welfare non-profit group, released its first “Quit Stalling Report.” It finds that companies from quick-serve restaurants to hotel conglomerates are mostly failing to meet their commitments to end sow confinement. From 2012 to 2015, many companies that sell pork set goals to end the use of gestation crates for pregnant pigs and provide only gestation-crate-free pork. Many companies, including Campbell’s, Kraft, and Heinz, typically set target dates to implement the change. However, the group estimates that three out of four sows continue to spend most of their lives confined to gestation crates, with little space to move and even less to turn around. World Animal Protection says the deadlines many of the companies set have long-since passed, with little attention paid to the missed dates. Of the 56 companies included in the Quit Stalling Report, World Animal Protection says it’s especially concerned that almost 30 percent of companies no longer maintain the language in their published animal welfare policies or responsibility reports affirming their commitment to crate-free pork. Just 29 percent of the companies are publicly reporting that they are making progress towards or have achieved full implementation of those animal welfare commitments. *****************************************t***************************************************** Soy Growers Ask Ag Leaders to Urge FCC to Keep GPS Working GPS was a recent topic of conversation with House Ag Committee Chair Collin Peterson and Ag Committee member Glenn Thompson of Pennsylvania. The discussion centered around the Federal Communications Commission’s decision to allow Ligado Networks to operate a terrestrial wireless network and how it will threaten the reliability of GPS receivers vital to precision agriculture. Because producers rely so heavily on precision technology, the prospect of GPS units potentially not working is critical to every single farmer that uses precision technology. “Our organization has been advocating for soybean farmers for 100 years,” says Jim Kukowski, the American Soybean Association’s Conservation and Precision Agriculture Committee Chair. “The arrival of GPS to farms has been the biggest technical advancement the industry has ever seen. The fact that the FCC would threaten our farmers with such a misguided decision is incomprehensible.” ASA joined leading ag organizations to support the Keep GPS Working Coalition. The Ligado website says the company’s applications will “protect GPS, enable the expedited deployment of 5G networks, serve America’s critical industries, and will improve the lives of consumers in rural and urban areas around the country.” ********************************************************************************************** Livestock Producers Applaud Legislation to Protect Against Predators The National Cattlemen’s Beef Association and the Public Lands Council were pleased to see the House pass legislation designed to protect livestock from protected predators. It would compensate livestock producers who experience depredation by federally protected species and fund methods to reduce conflicts between humans and predators. In the Senate, Environment and Public Works Chair John Barrasso of Wyoming introduced the American Conservation Enhancement Act. One provision would provide depredation payments for livestock producers who experience animal losses caused by federally protected species, while also allowing producers to use non-lethal deterrence activities to help protect their animals. States previously funded these activities despite the federal level of protection for animals causing the predation. PLC and the NCBA have worked with Congress and federal agencies to provide relief to states through improved regulations and compensation programs. “Livestock producers and states face significant burdens when the federal government implements protections for species without any support for the economic and natural resource impacts their decisions can have,” says PLC Executive Director Kaitlynn Glover. “This relief comes at a time when producers are contending with serious losses due to multiple events.” ************************************************************************************ Advancing and Driving Demand for Biofuels Through Research The National Corn-to-Ethanol Research Center is expanding its capabilities and offerings with one goal in mind; to create opportunities for America’s corn farmers. The National Corn Growers Association has worked with NCERC to help underscore the advantages of renewable corn ethanol. “At NCERC, ethanol will always be a foundation of our work,” says Executive Director John Caupert. “Just like when you’re building a home, a foundation is something to build on. As policy, technology, and industry have evolved, we are evolving along with it.” Now more than ever, new uses and market opportunities are needed for America’s corn farmers. One of the more exciting bioprocess developments is in the area of biopolymers. The commercial application of biopolymers is endless. From liners in cardboard boxes to liners in baby diapers, and everything in between, someday very soon, America will be able to utilize corn-based biopolymers. NCERC partners with multiple companies on dozens of renewable compounds, including biofuels, biochemicals, biomaterials, and bioproducts. The National Corn Growers Association says as the industry looks to the future and how to continue to drive corn demand, they’ll look at partners like NCERC to help farmers chip away at their corn surplus.
| Rural Advocate News | Monday October 5, 2020 |
Washington Insider: Food Shortages Intensify The Washington Post is reporting this week that U.S. food supplement programs are facing large shortages of supplies over the next 12 months. As a result, food banks have seen record increases in need even as donations and volunteers dwindle, the Washington Post said. The report focused on the tens of millions of Americans who have turned to a local food bank for help after becoming newly food insecure because of the pandemic and its fallout. About 10% of American adults, 22.3 million, reported they sometimes or often didn't have enough to eat within the past week, according to the U.S. Census Bureau's most recent Household Pulse Survey fielded between Aug. 19 and 31. “That is up from 18 million before March 13,” the Post said. The report includes interviews with participants in several programs, including Feeding America, a nationwide network of more than 200 food banks – which projects a 6 billion to 8 billion meal shortfall in the next 12 months. That deficit could be magnified as federal food assistance programs are scheduled to expire in the coming weeks and months. The Feeding America analysis estimates the total need for charitable food over the next year will reach 17 billion pounds, more than three times last year's effort. The Post focuses on several program participants. For example, one said that, at 41, he's been through quite a bit. His wife has a disability and he has been the primary breadwinner for a number of years. He has suffered from anxiety and depression for some time, once taking unpaid leave for a hospitalization. Since losing his job, he has liquidated his 401(k), used his $1,200 stimulus check to pay down some bills and opted into a special payment plan with his mortgage lender. But even with the extra $600 per week in unemployment the Cares Act provided, things have been tight. The article points out a change in the food business that “affects all income levels.” One participant in the charitable distribution program in Boston commented that “before the pandemic customers walked through and picked out their own items. Requirements for social distancing and contactless handoffs now require volunteers to fill prefabricated boxes, a more laborious process. And volunteerism continues to be way down.” In a normal year, Greater Boston Food Bank has 24,000 volunteers available to help shoppers – about 460 each week. Now, they get 100 to 150 per week. These challenges to food assistance are not unique to the Boston area, the report says. Still, “I have never seen any circumstances as bizarre and complicated as what we're seeing right now,” said Sherrie Tussler, executive director of the Hunger Task Force, a food bank and anti-hunger advocacy group in Milwaukee.” She says the pandemic has complicated food distribution, especially for those who don't have transportation or who live in remote areas. Food banks alone cannot be the answer, she says. Katie Fitzgerald, chief operating officer of Feeding America, says that a Feeding America survey launched Sept. 15 and concluded Sept. 28, member food banks reported seeing an average 56 percent increase in demand. In August, Feeding America network food banks distributed an estimated 593 million meals, an increase of 64 percent from a typical pre-pandemic month. Fitzgerald says natural disasters add additional stress to regional food assistance programs. About 5 million schoolchildren live in a household where people can't afford sufficient food, says Stacy Dean, vice president for food assistance policy at the think tank Center on Budget and Policy Priorities. There were about 6 million more participants in SNAP, the food assistance program formerly known as food stamps, in May and June compared with February, says Joseph Llobrera, director of research for food assistance policy for CBPP. Advocates say that the emergency rule on benefit maximums have alleviated hardship for many, nearly 40 percent of households already received the SNAP maximum benefit and thus received no increased benefit. Sixteen million low-income people, including 7 million children, got no additional assistance, according to economists at CBPP. Fitzgerald and other advocates have strongly urged a 15% increase in SNAP. Shortfalls in these programs put extra pressure on food banks during the pandemic. And the effects of these deficits are not just short-term, says Megan Sandel, co-director of the Grow Clinic for Children at Boston Medical Center. She says she has seen a 40 percent increase in her caseload, with over two-thirds reporting food insecurity. In the past, Sandel says, it wasn't unusual for low-income Americans to have to stretch a dollar at the end of the month. “Now they are running out of their food budget the second or third week of the month. Parents are going back into the kitchen at mealtime so kids won't notice that parents aren't eating themselves,” she says. “The larger food banks, like Boston and Houston, are experiencing greater philanthropy, but smaller ones haven't had as much success,” she says. So, we will see. There is widespread support for food assistance programs of many kinds, but the system is vast and complicated. These programs benefit both rural and urban families and should be watched closely as they are adjusted to match growing needs, Washington Insider believes.
| Rural Advocate News | Monday October 5, 2020 |
OMB Finalizes Review of USDA Rule To Make Changes To CSP To Reflect 2018 Farm Bill Changes The Office of Management and Budget (OMB) has completed its review of USDA's final rule to rule to make changes to the Conservation Stewardship Program (CSP) to put changes in place from the 2018 Farm Bill. The changes include confirming validity of CSP contracts entered into prior to 2018 Farm Bill enactment, it authorizes the ability to extend contracts that were due to expire on or before December 31, 2019, and authorizes renewal of such contracts through the new CSP authority and simplifies CSP ranking criteria and addresses other issues raised in 110 comments that were submitted on the interim rule on CSP.
| Rural Advocate News | Monday October 5, 2020 |
Senate Sends Caribbean Trade Measure To Trump The Senate approved legislation to extend the Caribbean Basin Trade Partnership Act until September 30, 2030, under the Caribbean Trade Basin Economic Recovery Act. Eight countries currently qualify under the program, but Haiti has emerged as the biggest beneficiary because of the trade preferences as well as other U.S. programs designed to build the country's economy. Congress has yet to act on another expiring trade preference program, the Generalized System of Preferences (GSP) that expires December 31. The program offers tariff breaks on 3,500 products imported from nearly 120 countries.
| Rural Advocate News | Monday October 5, 2020 |
Monday Watch List Markets Monday's lineup will sound familiar with weekly grain export inspections due out at 10 a.m. CDT. USDA's Crop Progress report at 3 p.m. CDT and feature corn and soybean harvest progress and winter wheat planting progress. As usual, the latest weather forecasts and any export sales will also get attention at the start of the first full week of October. Weather Dry conditions will again cover all primary crop areas Monday, favoring row crop harvest and winter wheat planting. Some frost is indicated in the eastern Midwest. The Australia Southern Oscillation Index (SOI) values are now in La Nina categories in both the 30- and 90-day calculations at plus 9.90 on the 30-day and plus 8.05 on the 90-day.
| Rural Advocate News | Friday October 2, 2020 |
Senate Approves Continuing Resolution: CR Bill Goes to Trump Late Wednesday, the Senate approved the continuing resolution to fund the government through December 11 just hours before the end of the fiscal year. The Hagstrom Report says the bill now goes to President Trump for his signature. Senate Ag Committee Chair Pat Roberts, other lawmakers, along with farm and nutrition groups, noted the importance of provisions that allow farm subsidies to continue to flow and hungry Americans to get food. The CR passed by a margin of 84 to 10. “In these wildly uncertain times, farmers, ranchers, and growers are counting on us to get this right,” Roberts says. “I hope farm country can rest a little easier tonight knowing that funds for the Commodity Credit Corporation will be replenished to continue farm bill programs and assist producers who are impacted by COVID-19.” National Farmers Union President Rob Larew says the passage is an “immense relief” to farmers, who depend on federally funded programs to access loans, technical support, as well as critical market and climate data. National Corn Growers Association President Kevin Ross adds that farmers have been working with Congress for years to develop and implement effective risk management tools that ensure a stable feed, fuel, and food supply, even during the tough times that many farmers face today.” ********************************************************************************************** Minnesota Court Dismisses Lawsuit Against Meatpackers The U.S. District Court in Minnesota dismissed an anti-trust lawsuit against meatpackers like Tyson Foods, JBS, the National Beef Packing Company, and Cargill. R-CALF led several plaintiffs in filing the lawsuit. Chief Judge John Tunheim did leave open the opportunity for plaintiffs to amend their complaint. Tyson Foods says, “We’re pleased with the court’s decision.” In the ruling, the judge says the complaint didn’t give much evidence of how meatpackers conspired to manipulate prices for fed cattle; instead, “it resorted to group pleading, arguing that the market did this or that.” In his written opinion, Tunheim says, “The most specific allegations related to 2015 when JBS dropped its annual slaughter volume by 17 percent, National Beef by six percent, and Tyson by four percent. Plaintiffs then say little about the defendants in the years that follow when slaughter volumes actually increased. As for other allegations like a reduction in the number of cash cattle purchased, the judge says plaintiffs rely almost exclusively on industry-wide data and ask the court to infer that the individual defendants all contributed to the decrease simply because they make up a majority of the industry. The Ranchers Cattlemen Action Legal Fund, the United Stockgrowers of America, and the Farmers Educational and Cooperative Union of America filed the lawsuit in April of 2019. ********************************************************************************************** New Soy-Based Product Protects U.S. Roads A new soy-based concrete sealant is protecting roadways in the U.S. while also supporting demand for soybeans and reducing maintenance costs for infrastructure. The United Soybean Board partnered with the Indiana Soybean Alliance on research and market development efforts for soy-based solutions in infrastructure for decades. They’re proud to announce that select Indiana counties have the opportunity to use a new soy-based sealant called PoreShield on their bridges. The brand-new product is made possible by farmers’ checkoff investments. PoreShield is being used on 77 bridge decks totaling 330,000 square feet in Indiana this year, with aims to expand the use in the future. The good news for farmers is, as PoreShield continues to be adopted as a solution, demand for soybeans grows too. On average, PoreShield uses 200 bushels of soybeans per mile of two-lane bridge treatment. That’s equivalent to 7.5 acres of soybeans for each mile demanded by this market. “As a renewable alternative, using U.S.-grown soybean oil as a concrete-durability enhancer is among one of 1,000 soy-based products currently on the market,” says John Jansen, USB Vice President of Oil Strategy. “It unlocks yet another use that drives demand for our soybeans, and with PoreShield, there’s enormous potential for roads and bridges that need these critical enhancements.” *****************************************t***************************************************** NACD President Stresses Importance of Conservation Programs During Testimony Tim Palmer, President of the National Association of Conservation Districts, testified before the House Subcommittee on Conservation and Forestry about 2020 conservation programs. He detailed the successes and challenges of the programs brought on by COVID-19. Palmer, who farms in Iowa, says it’s vital that the Committee understands how important Conservation Technical Assistance is to the successful implementation of conservation planning and farm bill conservation programs. During his testimony, he highlighted the impact of state and local budget cuts caused by COVID-19 on conservation districts. He also described the success of NACD’s Technical Assistance Grants Program, funded in partnership with the Natural Resources Conservation Service, in helping to boost technical capacity in conservation districts across the country. Palmer emphasized the role conservation districts play in coordinating locally-led conservation delivery with NRCS, and that the agency needs greater federal hiring authority to address their staff shortages. “Budget shortfalls or associated budget cuts often trickle down, causing conservation districts to furlough staff members who are often responsible for customer service,” Palmer added. ********************************************************************************************** Legislation Brings Needed Reform to Conservation Compliance Legislation recently introduced in the Senate would bring much-needed reform to the Natural Resources Conservation Service’s Conservation Compliance Program. The NRCS Wetland Compliance and Appeals Reform Act was introduced by South Dakota Senator Mike Rounds. It would require the NRCS to provide more evidence in determining wetlands and give farmers more rights in the appeals process. The American Farm Bureau has documented situations in which farmers have been hurt by repeated, unjustified, and costly decisions by the NRCS. These issues must be addressed. The Farm Bureau has advocated for clear rules and safeguards to ensure the fair treatment of farmers in conservation compliance. When USDA released the Highly Erodible Land and Wetland Conservation Final Rule, it was clear the issues haven’t been remedied. “The plain truth is that farmers have been unfairly treated by NRCS when they’re trying to be good stewards of the land,” says AFB President Zippy Duvall. “AFBF stood up for them by pressing for changes to conservation compliance programs, and we applaud Senator Rounds for introducing the Act. It would institute needed reforms, and although it’s sweeping in nature in its current form, it takes important steps toward creating a fair and understandable process for American Farmers.” ************************************************************************************ FFA Introduces “Agricultural Education for All” The National FFA organization announced its new Agricultural Education for All roadmap. The plan outlines the strategies the organization is taking to support inclusion, diversity, and equity. The FFA wants to ensure that the organization is a bully-free zone that reflects society’s demographics in membership, leadership, and staff, and celebrates individuality. “FFA is building the next generation of leaders – and the world needs leaders with diverse backgrounds, experiences, ideas, and identities,” says FFA CEO Mark Poeschl (PESH-uhl). “Through agricultural education and FFA, students can take these experiences and apply them in their communities.” Some examples of the steps FFA will take include creating a dedicated inclusion, diversity, and equity staff position at National FFA. They’ll also relaunch the H.O. Sargent Award to recognize individuals who have achieved success in promoting inclusion, diversity, and equity in agricultural education and the FFA. They’ll also develop an Agricultural Education for All immersion curriculum and an online platform to build empathy, respect, and inclusion for others, as well as training educators to be Agricultural Education for All facilitators. Dr. Roger Cleveland, director of the Center for Research on the Eradication of Educational Disparities, has been working closely with FFA to develop the roadmap.
| Rural Advocate News | Friday October 2, 2020 |
Washington Insider: Asia's Exporters Heal Slowly From COVID Asia's manufacturing engines just turned in another month of fitful progress, as September's purchasing managers indexes look a bit brighter, with a few exceptions. Bloomberg is reporting this week that that India's factory gauge surged further into expansion, while still making up for a record-low reading in April and with more challenges ahead given a worsening COVID-19 outbreak. Japan's PMI rose to the highest level since February but continues to contract. Vietnam improved to its best level in more than a year and Thailand and the Philippines each edged higher. Indonesia brought the biggest bad news, with its gauge slumping as Jakarta reintroduced restrictions to curb the spread of coronavirus cases. Bloomberg also says that the PMI reports for several “bellwethers for the global rebound in trade – South Korea and Taiwan – won't be available until later in October, and that China's Caixin PMI is now set for release Oct. 8, due to holidays.” A few of the PMIs followed more hopeful signs for the regional recovery, a separate report Thursday showed South Korean exports gaining for the first time since the pandemic hit. Also, Wednesday's figures from China indicate “further momentum in economic activity.” For Vietnam, the manufacturing jump was overshadowed by a string of other data and developments in the Southeast Asian nation over the past 24 hours. For example, the U.S. is readying a probe into Vietnam's currency practices, Bloomberg says, thickening the long-term plot of sticky U.S.-Vietnam relations on the sidelines of the U.S.-China trade war. Bloomberg also says that on Wednesday Vietnam reported an acceleration in third-quarter growth – although the rate was “slower than expected.” Nevertheless, Bloomberg concludes that “the warning more broadly from Wall Street economists heading into the final quarter of the year is that the best is already over for recovery” of this region. They suggest now that, “what started off as a sprint is turning into a slog.” In a side note Wednesday, Bloomberg noted a report that suggested that China's tech companies will face a tougher time globally in the future as digital decoupling accelerates and countries with shared values join forces to promote their technology standards and ethics, according to a report from the Hinrich Foundation. Moves by the U.S. against companies such as TikTok, WeChat, Huawei Technologies Co. and Semiconductor Manufacturing International Corp. are only the beginning of a deeper shift that will also see the European Union and international organizations rethink how they engage with Chinese technology, said the Asia-based foundation set up by U.S. entrepreneur Merle Hinrich. Australia, Japan and the UK have already followed the U.S. in banning Huawei from 5G networks. India has prohibited more than 100 Chinese apps including the video-sharing platform TikTok. In addition, in August, the U.S. launched a so-called Clean Network initiative that aims to oust Chinese technology from wireless and digital networks on the grounds that it poses national security threats. The following month, China released its Global Initiative on Data Security that ostensibly calls for global standards for data security—an effort that could also be construed as an attempt to deter others from signing up for Washington's program. “These actions have created an existential crisis for Chinese companies, which have come under fire as they are increasingly viewed as de facto proxies of the Chinese Communist Party,” said Alex Capri, a Singapore-based research fellow who authored the report. “In the broader context of a U.S.-China technology cold war, Chinese companies' linkage to Beijing has relegated them to the status of malign actors.” Chinese actions such as the clamping down on freedoms in Xinjiang, Tibet and Hong Kong – where Beijing abruptly imposed a new national security law in June – are also stoking concern about reliance on the country's technology internationally. China has repeatedly called such matters its own internal affairs and warned against foreign interference. EU leaders are expected to call for a rebalancing of their economic relations with China at a summit Thursday in Brussels. The report said that, “regardless of whether Republican incumbent Donald Trump or Democratic nominee Joe Biden is in the Oval Office, Washington will accelerate efforts to block Chinese tech firms from expanding into overseas markets.” This will make technology a cornerstone of global diplomacy, which could lead to the creation of new institutions and rule frameworks for governing technology and data, the report added. The linkage of technology to fundamental ideological values is a key factor leading countries to reconsider their stance, according to the report. “There's been this sort of 'wake up moment' that's produced this incredible backlash from the West in particular,” Capri said in an interview. “We're starting to see a closing of the ranks from liberal democracies around the world, which is not a good thing for China's system of techno-authoritarianism and, by extension, Chinese technology companies in general.” So, we will see. Clearly, the pushback against rapid Chinese expansion in many markets is intensifying, but China's markets are tempting, as well. So far, efforts to negotiate deals on both the supply and demand side seem to have fallen in sharp political disfavor—a development that possibly will be difficult to maintain in the face of market realities. These are developments which should be watched closely by producers as the season progresses, Washington Insider believes.
| Rural Advocate News | Friday October 2, 2020 |
UK Beef Shipment En Route To US A shipment of meat from Northern Ireland is on its way to the U.S., decades after a mad cow disease scare prompted the U.S. to block all imports of UK beef. The shipment, the first since 1996, comes amid negotiations toward a bilateral trade deal. An audit by USDA's Food Safety and Inspection Service in March led to the U.S. lifting the ban on beef imports from all of the UK—England, Wales, Scotland and Northern Ireland. The Trump administration wants Britain to remove a ban on imports of American beef produced with artificial growth hormones.
| Rural Advocate News | Friday October 2, 2020 |
CR Signing To Set Farm Program Payments In Motion Approval of the continuing resolution (CR) to keep the government funded through December 11 and provide for $20 billion in Commodity Credit Corporation (CCC) borrowing authority means that the Farm Service Agency (FSA) will start the process of making a series of “regular” farm program-related payments to farmers. FSA will start processing payments for Transition Incentives Program (TIP), Emergency Forestry CRP (EFCRP) and for some Conservation Reserve Program (CRP) contracts October 2, for Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) payments on October 6, other CRP payments October 9 and for ARC Individual Option Contracts on October 26.
| Rural Advocate News | Friday October 2, 2020 |
Friday Watch List Markets The U.S. Labor Department is expected to show an increase in September non-farm payrolls at 7:30 a.m. CDT, along with the U.S. unemployment rate. The University of Michigan's consumer sentiment index will be updated at 9 a.m. Traders continue to keep an eye on the latest weather forecasts for the U.S., South America and the Black Sea. Any news of an export sale will also be noted. Weather Frosty temperatures were noted across the Upper Midwest and Northern/Central Plains Friday morning. Isolated showers will be found around the Great Lakes Friday while a system will bring light showers to the Northern and Central Plains later in the day. Overall conditions are good yet again for harvest and fieldwork.
| Rural Advocate News | Thursday October 1, 2020 |
USDA Releases Grain Stocks Report The Quarterly Grain Stocks report shows old crop corn stocks on hand as of September 1, 2020, totaled 2.0 billion bushels, down ten percent from a year ago. Old crop soybeans stored in all positions were down 42 percent, and all wheat stocks were down eight percent from a year earlier. Released by the Department of Agriculture's National Agricultural Statistics Service, the report found that of the total corn stocks, 751 million bushels were stored on farms, down eight percent from a year earlier. Off-farm stocks, at 1.24 billion bushels, were down 12 percent from a year ago. Old crop soybeans stored in all positions totaled 523 million bushels. Soybean stocks stored on farms totaled 141 million bushels, down 47 percent, and off-farm stocks, at 382 million bushels, were down 41 percent. All wheat stored in all positions totaled 2.16 billion bushels. On-farm stocks were estimated at 705 million bushels, down four percent, and off-farm stocks were down ten percent at 1.45 billion bushels. NASS also released the Small Grains Annual Summary report. The report found All wheat production totaled 1.83 billion bushels in 2020, down five percent from the revised 2019 total of 1.93 billion bushels. Area harvested for grain totaled 36.7 million acres, down two percent from 2019, and The United States yield was estimated at 49.7 bushels per acre, down 2.0 bushels from 2019. ************************************************************************************ NFU: Pandemic Revealed Need for Reform in the Food and Farm System Pandemic-related disruptions have exposed underlying weaknesses in the food and farm system, according to the National Farmers Union. NFU President Rob Larew told the House Small Business Committee Wednesday during a hearing the need for significant structural reforms to protect farmers and consumers from similar disruptions in the future. One of the primary contributors to supply chain delays and food shortages has been widespread corporation consolidation, particularly in the meat processing industry, Larew told the lawmakers. As a solution, Larew proposed policies that would stem the tide of consolidation and build out regional food infrastructure. NFU says another major problem is chronic oversupply. In recent months, restaurant closures and shifting demand has made matters worse, as Larew noted in his testimony. Though pandemic aid has helped farmers withstand persistently low prices, “policy changes are needed to address the causes – rather than simply the symptoms – of a broken farm economy.” NFU proposes a supply management system that would balance farm production with consumer demand. ************************************************************************************ Cattle Producers Welcome Sen. Fischer's HAULS Act Livestock groups this week applauded the introduction of legislation that would provide livestock haulers flexibility and critical relief from hours-of-service rules. Senator Deb Fischer, a Nebraska Republican, introduced the Haulers of Agriculture and Livestock Safety, or HAULS Act. The legislation would add a 150 air-mile exemption to hours of service regulations to the backend of hauls for those transporting livestock or agricultural commodities. The bill also eliminates the seasonal harvest requirements for the agriculture hours-of-service exemption, making the exemption available year-round in all states. Jon Samson, Executive Director of the Agricultural and Food Transporters Conference, says, “this language provides the ag community with continued flexibility during the busiest times of the year, while expanding uniformity and clarity for the transportation of our nation’s ag products.” American Farm Bureau Federation President Zippy Duval stated, “The HAULS Act modernizes trucking regulations to meet the needs of our members,” adding, “I applaud Senator Fischer for her leadership on this important issue.” ************************************************************************************ USDA grants American Farmland Trust $2.6 million to improve soil health practice adoption A $2.6-million grant from the Department of Agriculture will help American Farmland Trust fund its Conquering Cover Crop Challenges Coast to Coast project. USDA's Natural Resource Conservation Service supplied the funding through its On-Farm Conservation Innovation Trials. Through 20 on-farm trials and a comprehensive soil, economic, and social evaluation system, American Farmland trust will test innovative solutions and generate five years of results that will help overcome regional and crop-specific barriers to cover crop adoption. Specifically, the project will address cover crop establishment challenges in water-limited, dryland wheat systems, and challenges unique to high value, high-input specialty crops, among other goals. American Farmland Trust will partner with 13 local conservation districts, university extension departments and the private sector across seven states. The project will begin in January 2021 and run through the end of 2025. Every year, American Farmland trust will publish summary reports on the changes in the soil in response to the adopted soil health practices. ************************************************************************************ Consumer Expectations Change as the Pandemic Enters a New Season The Consumer Brands Association's latest COVID-19 poll asked more than 1,300 American adults about their opinions on the coronavirus and its effect on the country. The data shows a country normalized by a persistent threat and contending with growing anxiety over what’s ahead. When the pandemic began, 36 percent of Americans described themselves as "very concerned" in mid-March, which jumped up to a majority quickly after and has yet to dip below 50 percent since. While most Americans, 72 percent, are still optimistic about the next six months, that optimism has dipped slightly since June, from 76 percent. The perennial lengthening of the timetable for returning to normal and the whiplash changes in the news about the virus, whether driven by politics or new information, has pushed optimism lower. While the supply chain has largely solved for shortages of high-demand products like toilet paper, meat and cleaning supplies brought on by panic-buying early in the pandemic, Americans' fears over access to those products have not. ************************************************************************************ United Fresh Releases Fresh Facts on Retail Report A new report covers the increasing popularity of e-commerce and the unprecedented rise of in-home consumption triggered by COVID-19, including the continued growth of fresh fruit and vegetable sales. United Fresh Produce Association released its Q2 2020 issue of FreshFacts on Retail this week. The report measures retail price and sales trends for the top 10 fruit and vegetable commodities and other value-added produce categories. The report says growth continues in fruit and vegetables as sales surge across categories driven by consumers seeking versatile cooking and salad staples for home meal preparation, and healthy home snack options. Meanwhile, packaged salads are a top-selling organic produce commodity, followed by apples and strawberries. Consumer response to value-added fruit remains muted, while value-added vegetable sales grew. Products typically consumed in group settings declined, while products that are more challenging for consumers to handle and prepare at home drove consumer interest.
| Rural Advocate News | Thursday October 1, 2020 |
Washington Insider: EU Eyes New Tariff Hit On US The transatlantic trade conflict isn't showing signs of winding down any time soon – and a new ruling from the World Trade Organization could mean that a fresh round of retaliatory tariffs could jeopardize economic recoveries in both the U.S. and the European Union. Bloomberg is reporting this week that the WTO gave the EU authority to impose tariffs on $4 billion of U.S. exports over illegal government aid provided to Boeing Co. The EU previously said it would act on the levies immediately to counteract $7.5 billion of tariffs Washington placed on European goods in a separate case involving Toulouse, France-based Airbus SE. The judgment comes at a delicate moment, with the U.S. presidential election just over a month away and as the U.S. and the EU struggle to recover from coronavirus-induced recessions. The EU tariffs will target coal producers, farmers and fisheries, in addition to aircraft makers, all politically important industries for the President and his Republican allies in Congress. If the two sides can't resolve the tit-for-tat aircraft dispute, “we will have another tariff fight on our hands, with consumers and producers on both sides caught in the middle and paying the price,” said Simon Lester, an associate director at the Cato Institute. A key question now is whether the EU will move quickly to trigger its tariffs against the U.S. or await the outcome of the Nov. 3 election. If the EU immediately triggers the new tariffs it could provoke the Trump administration, which claims it has already brought its Boeing subsidies into compliance. If the EU waits until after the election, there's the possibility that Brussels could find a more amenable negotiating partner in Joe Biden, the Democratic nominee, whose advisers have pledged to seek a swift end to Trump's “artificial trade war” with Europe. The WTO ruling, about a third of what the EU requested, is the latest twist in the 16-year Boeing-Airbus conflict. And it represents just one of several sources of friction in the trade relationship between the EU and the U.S. The most recent troubles started in 2018 when the administration invoked national-security considerations to impose tariffs on steel and aluminum from Europe. As a U.S. military ally, the EU was infuriated and promptly retaliated with levies on U.S. goods including iconic brands such as Harley-Davidson Inc. motorcycles and Levi Strauss & Co. jeans. While both the EU and U.S. say they want to reach a settlement to the aircraft dispute, the Trump administration has rejected all of Brussels' previous overtures. The sheer number of pending disagreements between the EU and the U.S. means that a dispute could escalate quickly into a broader trade war, Bloomberg says. Earlier this month, the president renewed a threat to hit European cars with levies, a move that would draw immediate retaliation from the bloc. The Boeing case comes less than a year after the WTO hit the U.S. with a record $7.5 billion retaliation award in response to the EU's illegal subsidies to Airbus SE. The U.S. has since levied 15% duties on Airbus aircraft and 25% tariffs on a range of European consumer exports, such as Scotch and French wine. A large ruling in the Boeing case would allow the EU to retaliate over the Airbus tariffs and would also give the bloc more leverage in negotiating a settlement to the dispute. It would also allow the EU to capitalize on the delicate political situation in the U.S. as this fall's election campaigns go into full swing. “The ongoing implementation of tariffs and trade disputes appear to be contributing factors in the slowing of global economic growth, particularly in Europe and China,” St. Louis-based Arch Resources Inc.'s management wrote in its annual report in February. The proposed tariffs could also target about $700 million worth of U.S. seafood exports to the EU, which would impact Louisiana fishermen represented by Republican House Minority Whip Steve Scalise, R., La. While it's still possible that the EU and U.S. could reach a negotiated settlement that avoids a tit-for-tat tariff escalation, that prospect looks increasingly remote. U.S. Trade Representative Robert Lighthizer said he's seeking two things: A pledge from Europe to end its subsidies to Airbus and monetary compensation. “It is going to require commitments not to do it again but also paying back some element of the subsidy,” Lighthizer said in a Chatham House event in July. In July the governments of France and Spain revised the terms of their launch aid loans to Airbus to make them compatible with WTO rules. The Trump administration has already rejected the move as insufficient and alleged the EU's subsidy regime remains illegal. If the U.S. and the EU are unable to reach a settlement, the bloc's newly designated trade chief has pledged to resort to targeted levies. “We will if we will have to, but our preference would be to have an agreement with the U.S. in between where they also withdraw their tariffs,” EU trade chief Valdis Dombrovskis told Bloomberg earlier this month. So, we will see. While this dispute certainly is likely to attract U.S. attention there seems to be no real willingness to move toward settlement. Because these trade policy wars often seem to have the potential to spread quickly and widely, the policies proposed and implemented should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday October 1, 2020 |
USTR Requests Section 201 Investigation on Blueberries The Office of the U.S. Trade Representative (USTR) has requested that an investigation on imports of blueberries are hurting U.S. growers be launched by the U.S. International Trade Commission (ITC). USTR Robert Lighthizer said the request was being made under Section 201 of the Trade Act of 1974 and was among steps the administration is taking to “support American producers of seasonal and perishable agricultural commodities.” Depending on the outcome, the investigation could result in “safeguard” tariffs being put in place on blueberry imports. The administration held two listening sessions earlier this year relative to fresh produce issues and said in a report issued September 1 that it would request the ITC initiate the Section 201 investigation on blueberries. Typically, Section 201 investigations are triggered by a domestic industry, as this request by USTR marks only the second time in 25 years that USTR has requested such an investigation. USTR said that 98% of total U.S. blueberry imports came from five countries since 2014 and that the value of those imports has more than doubled since 2014.
| Rural Advocate News | Thursday October 1, 2020 |
Sen. Grassley Expects No Additional SRE Actions Ahead of Election Additional decisions by the Trump administration on waivers under the Renewable Fuel Standard (RFS) are not likely to be made before the November 3 elections, according to Sen. Chuck Grassley, R-Iowa. The issue of small refinery exemptions (SREs) has gained in focus in the wake of the 10th Circuit Court ruling that in order to qualify for these waivers, refiners had to have requested them on an annual basis since 2011. "I think the president showed his pro-ethanol credentials by what he said about the 'gap waivers,' and that was a big win for biofuels from President Trump," Grassley said in a call with reporters. EPA data shows that there are still 17 of the gap-year SRE requests pending for the 2011-2018 compliance years, and now another 33 requests pending for the 2019 and 2020 compliance years combined.
| Rural Advocate News | Thursday October 1, 2020 |
Thursday Watch List Markets The first day of October starts with USDA's weekly export sales, U.S. jobless claims, U.S. personal income and an update of the U.S. Drought Monitor, all due out at 7:30 a.m. CDT. ISM's index of U.S. manufacturing is out at 9 a.m. CDT, followed by natural gas inventory at 9:30 a.m. USDA's Fats and Oils report at 2 p.m. CDT gives an update on U.S. soybean crush. Weather Scattered showers will be found around the Great Lakes Thursday but most areas will be dry with good harvest conditions, albeit with below-normal temperatures.
| Rural Advocate News | Wednesday September 30, 2020 |
Farmers to Families Food Box Program Surpasses 100 Million Boxes Delivered Agriculture Secretary Sonny Perdue announced Tuesday that more than 100 million food boxes have been distributed through the Farmers to Families Food Box Program. Perdue stated, “It is incredible to think that in a little more than five months, this food box program has gone from an idea to a reality that has provided more than 100 million boxes of nutritious foods.” Earlier this month, the Department of Agriculture announced it had entered into contracts with 50 entities for the third round of food box deliveries, including contracts to purchase up to $1 billion authorized by President Donald Trump. USDA is purchasing combination boxes in the third round of purchases to ensure all recipient organizations have access to fresh produce, dairy products, fluid milk, and meat products. Coverage in this round of the program allocates food boxes to states based on the state's internal need to provide coverage to entities in every county in the country. ************************************************************************************ Study: COVID-19 Caused $8 Billion Loss for Ethanol Producers A new study by university economists finds ethanol producers will experience roughly $8 billion in losses this year due to the pandemic's impact on world fuel markets. The study, conducted by economists from the University of Florida and Arizona State University, was published recently in the Journal of Agricultural and Food Industrial Organization. The estimated economic loss grows to a range of $7.9 to $8.6 billion when unemployment effects are included. The study acknowledges that those estimates likely "understate the cost of COVID-19" to the ethanol industry because the impact of the pandemic on co-product output, demand and prices is not included. Renewable Fuels Association President and CEO Geoff Cooper says the new study confirms the findings of an RFA analysis published in July, which found pandemic-related losses could be $7 billion or more in 2020. According to RFA, the study also underscores the importance of ensuring ethanol producers are not again left out of any stimulus package that may move forward in the weeks ahead. ************************************************************************************ CME Group to Launch Pork Cutout Futures and Options CME Group Tuesday announced plans to launch Pork Cutout futures and options. The new contracts are designed to give the U.S. pork industry and export markets tailored risk-management tools on the cutout. Tim Andriesen, CME Group managing director of agricultural products, says, “As the market has evolved, our customers continue to look for new tools to manage the price risk associated with hog and pork production.” Pending regulatory approvals, the Pork Cutout futures and options are slated to launch on November 9, and will be cash-settled to the CME Pork Cutout Index. The contracts will complement CME Lean Hog futures and options. CME Group says hogs are increasingly bought and sold in the physical market based on a formula which uses the cutout. The Pork Cutout reflects the approximate value of a hog calculated using the prices paid for wholesale cuts of pork. The new contracts will be quoted in U.S. cents per pound and will have a contract size of 40,000 pounds. ************************************************************************************ FMI Special Midyear report Outlines Increased Grocery Purchases FMI, the Food Industry Association, recently released a special mid-year report on meat sales in grocery stores. The report takes a fresh look at what was happening in the meat industry from the shopper’s perspective amid the coronavirus pandemic. As the pandemic hit the U.S. in March, shoppers quickly started stocking up on all types of food products. Meat department sales almost doubled in the first week of the pandemic, compared to the same week in 2019. While many were focused on filling their refrigerators and freezers with their purchases, consumers were also cooking more meals as home-prepared meals with meat specifically increased to 4.6 per week from 3.9 last year. The surge in demand and the impact of COVID-19 on meat suppliers resulted in a significant tightening of supply and some resulting meat inflation, as 91 percent of shoppers experienced out-of-stocks. However, FMI reports the meat department has persevered. Most shoppers continue to see meat as a good source of protein and nutrients, and many continue to believe meat belongs in a balanced diet. ************************************************************************************ Virtual Format Set For 2021 Beltwide Cotton Conferences The National Cotton Council will conduct the 2021 Beltwide Cotton Conferences virtually in January due to continued concerns regarding COVID-19’s spread. Planed for January 5 -7, the conferences bring together industry stakeholders. Those planning to participate in the 2021 live-stream event must register at the event website, cotton.org/beltwide/, which will be updated as program information becomes available. Registration will continue after the virtual 2021 event concludes to permit registered participants access to the event’s on-demand content. Registration costs for the 2021 conference have been reduced due to the virtual format, $180 for NCC members, university and USDA researchers, extension personnel, associations and consultants, $500 for non-U.S. research, extension, associations, and consultants, $350 for non-NCC members, and $75 for students. The 2021 event will begin on January 5 with the half-day Cotton Consultants Conference. The 11 cotton technical conferences, which now includes the Cotton Sustainability Conference, will provide updates on research and current and emerging technology. ************************************************************************************ USDA Awards $5 Million to Support Wetland Mitigation Banking The Department of Agriculture will award $5 million for eight new wetland mitigation banking projects through the Wetland Mitigation Banking Program. The program helps conservation partners develop or establish mitigation banks to help agricultural producers maintain eligibility for USDA programs. USDA says the wetlands will provide producers “an affordable mitigation option to remain in compliance for USDA farm bill programs while establishing banks that support wetland functions.” Wetland mitigation banks create credits through the restoration, creation, or enhancement of wetlands to compensate for impacts on wetlands at other locations. Most wetland mitigation banks, however, serve the development community and are not affordable to agricultural producers. Producers seeking benefits through most USDA programs must comply with wetland conservation provisions by affirming they will not impact wetlands on their lands. In situations where avoidance or on-site mitigation is challenging, the farm bill allows producers to mitigate their conversion activities off-site by purchasing mitigation banking credits.
| Rural Advocate News | Wednesday September 30, 2020 |
Washington Insider: New Stimulus Proposal Emerges Democratic leadership released a $2.2 trillion coronavirus response bill on Monday — but their offer would require Republicans to make concessions before a bipartisan deal is possible. The measure is $1 trillion below the Democrats' $3.4 trillion proposal from May. It would provide $436 billion for state and local governments rather than the original $915 billion and would provide another round of $1,200 payments and $600 per week extra unemployment insurance payments through January 2021, similar to the May proposal. The bill also would include new aid for airlines, restaurants and small businesses that were not included in the original legislation, as well as $225 billion for education and $75 billion for coronavirus testing, tracing and isolation measures. Bloomberg reports that Speaker Nancy Pelosi, D-Calif., spoke to Treasury Secretary Steven Mnuchin on Monday about a possible bipartisan deal — and that the two plan to speak again on Tuesday, Drew Hammill, Pelosi's deputy chief of staff, said. Republicans still need to support more spending than their previous $1 trillion proposal to reach an agreement, Pelosi said late on Monday. “When he's ready to come back to the table, we're ready to have that conversation, but he has to come back with much more money to get the job done,” Pelosi said. “So, I'm hopeful. I'm optimistic.” The Trump administration has yet to weigh in on the proposal. Pelosi previously said Republicans need to agree to a top-line figure of $2.2 trillion for negotiations to result in an agreement. Republicans originally proposed a $1 trillion measure, but didn't vote on it. Senate Republicans then proposed a smaller measure, which Senate Democrats blocked. Bloomberg focused on several details in the proposal. For example, it said the bill would provide $500 stimulus payments for dependents, which is equal to what families received starting this spring, but lower than the $1,200 Democrats proposed in May. And, it would provide $20 billion for the Department of Health and Human Services Biomedical Advanced Research and Development Authority for the development and procurement of vaccines and therapeutics. That matches what Robert Kadlec, assistant secretary for preparedness and response, told Senate appropriators HHS needs earlier this month. It also would provide the Centers for Disease Control and Prevention $7 billion for a vaccination campaign and $1 billion for “an evidence-based public awareness campaign on the importance of vaccinations,” according to a summary by the House Appropriations Committee. The measure also includes $15 billion to make up for U.S. Postal Service lost revenue. It also would require states to accept mail-in ballots if they were mailed before Election Day and received within 10 days of the election — and, it would increase the maximum benefits allowed under USDA's Supplemental Nutrition Assistance Program by 15%. Bloomberg said that the draft bill would prevent U.S. Citizenship and Immigration Services from furloughing employees “if the agency has sufficient funds to pay them—and would ensure funding by restricting the Department of Homeland Security's ability to transfer funds collected from fees for immigration benefits to other federal agencies for other purposes. The agency had expected to furlough workers at the end of August, citing a decrease in immigration fees because of the coronavirus. The furlough was averted temporarily. In spite of possible progress toward a further stimulus that was seen as positive news this week, Bloomberg also noted that China was making only slow progress on the purchases of U.S. products as required by phase one of the U.S.-China trade deal. Purchases have been sliding, the report said and noted that China reduced the pace of its purchases in August, making slow progress toward trade deal goals. The value of U.S. goods bought by China declined from the previous month, led by a slowdown in energy products, according to Bloomberg calculations based on Custom's data. By the end of August, China had purchased about 32.8% of the full-year target of more than $170 billion — meaning it must buy about $115 billion of goods in the remaining four months of the year to comply with last January's deal. Purchases of energy products fell by 24% in August from the previous month, hitting about 14% of the full-year target. While China's crude oil imports from the U.S. dropped substantially from a record high in July, they are likely to rise in coming months as purchases of American crude rose before the August review of the trade deal. In addition, the U.S. and China reaffirmed their commitment to the “Phase-One deal” in August, demonstrating a willingness to cooperate even as tensions rise over a range of issues. China also cut its pork imports from the U.S. by nearly 40% in August from a month earlier, while increasing its purchases of cereals, Bloomberg said. Imports of soybeans, one of the key products in the trade deal, rose almost 300% from a month earlier and are likely to trend higher as the U.S. harvest picks up. The August data include the latest revisions, Bloomberg said. So, we will see. The proposed stimulus bill still seems quite fragile, especially as the many headline fights spread to include an increasing number of issues. Thus, this “most toxic” political year appears to continue to become even more difficult as the elections near, situations producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday September 30, 2020 |
CFAP 1 Payments Top $10 Billion Payments under the Coronavirus Food Assistance Program 1 (CFAP 1) program are at $10.2 billion as of September 27, including $5 billion for livestock, $2.6 billion for non-specialty crops, $1.8 billion for dairy and $102 million for specialty crops. Funds paid for cattle total $4.3 billion, followed by $1.8 billion each for corn and milk, with $600 million for hogs and $509 million for soybeans. Payouts by state still show Iowa topping the list at $968 million followed by Nebraska ($711 million), California ($653 million), Texas ($625 million), Minnesota ($608 million) and Wisconsin ($523 million). Payment data for CFAP 2, where signup launched September 21, “will be available in the coming weeks,” according to USDA's Farm Service Agency.
| Rural Advocate News | Wednesday September 30, 2020 |
Democratic COVID Aid Plan Again Contains Farm Policy Shifts There are several provisions in the $2.2 trillion Democratic COVID aid plan that focus on nutrition and agriculture policy. It would provide additional Supplemental Nutrition Assistance Program (SNAP) aid, including increases in the SNAP benefit levels and funds to cover expected participation increases in the program. For agriculture policy, the plan would amend the Commodity Credit Corporation (CCC) Charter Act to allow for the use of CCC funds to deal with the removal and disposal of livestock and poultry due to supply chain disruptions during a public health emergency and would require congressional notification by USDA before any disbursement of CCC funds. Payments would be provided for livestock and poultry depopulated due to processing plant shutdowns from the health emergency with additional funds for animal health surveillance efforts. While it is not clear if the ag-policy-related provisions will become law, the details are a clear signal of what will likely be components in the next debate on an omnibus farm bill that will start to unfold in 2021.
| Rural Advocate News | Wednesday September 30, 2020 |
Wednesday Watch List Markets At 7:15 a.m. CDT, the ADP report of U.S. private employment in September will give a clue about Friday's non-farm payrolls report from the Labor Department. An index of pending home sales is due out at 9:00 a.m., followed by the Energy Department's weekly inventory report at 9:30 a.m., including ethanol. At 11 a.m. CDT, USDA will release its quarterly report of Sept. 1 Grain Stocks and Small Grains Summary. Weather Showers will be isolated and limited to the Great Lakes region, where delays in harvest of corn and soybeans will be possible. Other areas will remain dry with good weather for fieldwork.
| Rural Advocate News | Tuesday September 29, 2020 |
US-UK Trade talks Progressing The United States and the United Kingdom wrapped up the fourth round of trade talks this month, with another round planned for mid-October. The UK Department of International Trade says, "Significant progress has been achieved since launching negotiations in May 2020, and most chapter areas are now in the advanced stages of talks." Chief Ag Negotiator with the U.S. Trade Representative's Office, Gregg Doud, spoke Monday during an Agri-Pulse and Kansas City Agribusiness Council event. Doud told attendees, "I'm confident here that we are going to get an opportunity to engage with them and work on these issues," the issues being tariffs, biotech and market opportunity. Doud noted tariffs on U.S. products will be high when the UK leaves the European Union, upwards of 25 percent. However, for beef, pork and poultry, the UK imports $4.5 billion of meat from the European Union. Doud says, “if we can get things right, I think we will have a fair shot at that,” giving U.S. meat producers a new market. ************************************************************************************ Beijing Asks Frozen Food Importers to Shun Countries with Severe Coronavirus Beijing has asked frozen food importers to not import products from counties with severe coronavirus. The Beijing Municipal Commerce Bureau said in a statement issued to import companies, “Customs and local governments have repeatedly detected the coronavirus in imported cold chain food, proving it risks contamination,” according to Reuters. The Bureau urged importers to “proactively avoid importing cold chain food from areas heavily hit by the coronavirus,” while also asking importers to improve warning and reporting mechanisms related to testing products for the virus. This month, China suspended seafood imports from producers in Brazil, Indonesia and Russia for a week or more, because of coronavirus contamination. Earlier this summer, China also halted imports from a U.S. Tyson Foods plant. The U.S Centers for Disease Control and other world health organizations say the risk of contracting coronavirus from food is low. However, China has reportedly stamped out much of the virus, and is on high alert for any possible re-contamination. ************************************************************************************ NPPC, AFBF Seek to Cancel California Prop 12 The National Pork Producers Council and the American Farm Bureau Federation seek to terminate California’s Proposition 12. The two groups recently jointly filed their opening brief to the U.S. Court of Appeals for the Ninth Circuit, asking the court to strike California's Proposition 12 as invalid. AFBF and NPPC say Proposition 12 imposes arbitrary animal housing standards that reach outside of California's borders to farms across the United States. By attempting to regulate businesses outside of its borders, California's Proposition 12 violates the commerce clause of the U.S. Constitution, according to the court brief. Beginning in 2022, Proposition 12 prohibits the sale of pork not produced according to California's production standards. The proposition applies to any uncooked pork sold in the state, whether raised there or outside its borders. Currently, less than one percent of U.S. pork production meets Proposition 12's requirements. To comply with Proposition 12, U.S. hog farmers need to start making investment decisions today to be ready by the implementation date. ************************************************************************************ USDA Releases Annual Report Showing GMO Planted Acres The Department of Agriculture says more than 90 percent of U.S. corn, cotton and soybeans are produced using genetically engineered seeds. Through an annual report on GE planted crops, USDA’s Economic Research Service says most of these GE seeds are herbicide-tolerant, insect-resistant, or both, known as stacked traits. The share of U.S. soybean acres planted with herbicide-tolerant seeds rose from seven percent in 1996 to 68 percent in 2001, before plateauing at 94 percent in 2014. Insect-resistant soybeans are not yet commercially available. Adoption rates for herbicide-tolerant corn grew relatively slowly at first, but then plateaued at 89 percent in 2014. The share of insect-resistant corn acreage grew from approximately eight percent in 1997 to 82 percent in 2020. USDA says increases in adoption rates for insect-resistant corn may be due to the commercial introduction of new varieties resistant to the corn rootworm and the corn earworm. Meanwhile, herbicide-resistant cotton acres in 2019 reached 95 percent, and insect-resistant cotton was 88 percent of total planted acres. ************************************************************************************ Bayer XtendFlex Soybeans Gain Final Approval Bayer announced Monday that the European Commission has authorized XtendFlex soybean technology for food, feed, import and processing in the European Union. The milestone represents the final key authorization for XtendFlex soybeans. With the approval, Bayer can now look forward to a full launch in the United States and Canada in 2021 and expects to be in a strong position to supply 20 million U.S. soy acres when the selling season arrives. XtendFlex soybeans, Bayer’s newest soybean technology, are built upon the high-yielding Roundup Ready 2 Xtend soybean technology with the additional tolerance to glufosinate herbicides. That means XtendFlex soybeans are resistant to three herbicides, glyphosate, dicamba and the newly added glufosinate. XtendFlex soybeans will be Bayer’s second major product launch in soybeans in the last five years. Lisa Safarian, President of Crop Science North America at Bayer, says, "XtendFlex soybeans are the latest example of Bayer developing innovative products to help farmers meet challenges on their farm.” ************************************************************************************ European Company Raises Funds for Large-scale Cultured Meat Production Mosa Meat, the European food technology company which introduced the world's first cultured beef hamburger in 2013, announced the first closing of $55 million as part of a larger Series B funding round. The company will use the funds to extend its current pilot production facility, develop an industrial-sized production line, expand its team, and introduce cultivated beef to consumers. While no date has been announced for an introduction to consumers, the company will work with regulators to achieve approval to serve consumers in Europe. The Series B funding round is led Blue Horizon Ventures, a food technology fund that aims to support and promote a positive global impact on the environment, human health, and animal welfare. Company CEO Maarten Bosch says the funding supports efforts to “make progress towards a cleaner, kinder way of making real beef, and ultimately increase the resilience, sustainability, and safety of our global food system.”
| Rural Advocate News | Tuesday September 29, 2020 |
Washington Insider: Almost Everything's An Issue Now Centrist Democrats are pushing for another vote in the House on a coronavirus response stimulus bill, but the key question is whether high-level bipartisan negotiators can strike a deal. Bloomberg reports that lawmakers will “return to Washington with little time left for stimulus talks and other urgent priorities” after their coming recess. House members are set to leave at the end of this week until after the election. Senators still have to pass the stopgap funding measure to avert a shutdown by Wednesday night's deadline — and Republicans are racing to confirm President Donald Trump's pick for the U.S. Supreme Court before the Nov. 3 election. House members may vote on a second Democratic coronavirus bill in order to demonstrate they're willing to compromise, Bloomberg says. But a handshake deal between Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin would likely be more meaningful than a partisan vote. Pelosi and Mnuchin spoke Friday afternoon on coronavirus relief and “agreed to continue their conversation in the days ahead,” Pelosi's deputy chief of staff noted on Friday. Pelosi said Sunday there's a chance she and Mnuchin can still reach a deal and that Democrats will unveil a new “proffer” shortly. “I trust Secretary Mnuchin to present something that can reach a solution and I believe we can come to an agreement,” she said.” She added if a deal isn't struck soon, Democrats might vote on the House — only version that includes funds for airlines and restaurants and more Paycheck Protection Program funding. “The public is going to have to see why $2.2 trillion, or now $2.4 trillion, perhaps, is necessary,” she said, adding that the president's “denial of the virus, and resistance to do anything to crush it, has made matters worse.” Swing-district Democrats are pushing for action regardless of whether there's a deal. Eight moderate Democrats sent a letter to Pelosi on Friday, asking her to “bring up a bill that “demonstrates our commitment to meeting Republicans in the middle, as we have expressed our willingness to do, and advance it through the House with the haste this crisis demands.” The letter was signed by Democratic Reps. Cindy Axne, Abby Finkenauer and David Loebsack of Iowa, Susan Wild of Pennsylvania., Angie Craig of Minnesota, Susie Lee of Nevada, and Chris Pappas of New Hampshire, as well as Del. Michael San Nicolas of Guam. In the meantime, House leadership has downplayed the importance of a messaging vote. “We want to get a deal with Secretary Mnuchin and the Senate because we want to get people help, not just messages,” House Majority Leader Steny Hoyer, D-Md., told reporters last week. In addition, House Democrats' lawsuit over the administration's transfer of funds to pay for a border wall was revived last week by the DC Circuit Court of Appeals decision. A three-judge panel on Friday vacated a lower-court decision that found that the House didn't have legal standing to challenge the transfer of funds. The opinion written by Judge David Sentelle “makes for interesting reading” for those who follow the budget and appropriations process, Bloomberg says. It notes that the House sued over the Trump administration's move to supersede congressional appropriations and that the House alone, without the Senate, doesn't have standing to sue. The question was whether the House as an individual chamber was specifically injured by the administration's decision to spend money without congressional approval. The court ruled in the House's favor on its standing to sue, saying that while an individual chamber can't appropriate funds on its own, it can effectively block appropriations, because both chambers need to pass a bill before it can become law. In other words, “each chamber has a distinct individual right” in the appropriations process, especially when it comes to limiting spending, the opinion says. “To put it simply, the Appropriations Clause requires two keys to unlock the Treasury, and the House holds one of those keys,” the opinion says. “The Executive Branch has, in a word, snatched the House's key out of its hands. That is the injury over which the House is suing.” While it may seem like the argument is splitting hairs over the legislative powers of the House versus Congress as a whole, Sentelle's opinion lays out why the powers of an individual chamber matter in the appropriations process. Under the administration's “standing paradigm,” the Executive Branch can freely spend Treasury funds as it wishes unless and until a veto-proof majority of both houses of Congress forbids it. Even that might not be enough: Under the defendants' standing theory, if the Executive Branch ignored that congressional override, the House would remain just as disabled to sue to protect its own institutional interests. “That turns the constitutional order upside down.” So, we will see. As the time before the elections dwindles, and the stakes rise, these battles can be expected to become increasingly intense — and, possibly, more frequent. They are often “high stakes” fights and should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday September 29, 2020 |
USDA Raises Forecast For Overall Food Price Inflation And Restaurant Prices For 2020 USDA Friday increased its forecast for overall food price inflation in 2020 to range of 2.5% to 3.5%, up from their prior outlook of an increase of 2% to 3%. Their outlook for food away from home (restaurant prices) also rose to 2% to 3% versus a prior outlook for an increase of 1.5% to 2.5%. “Prices have been relatively slow to retreat from the highs reached as a result of the pandemic, so some forecasts have been revised upward this month,” USDA's Economic Research Service (ERS) said. USDA still sees 2020 food at home (grocery store) prices rising 2.5% to 3.5% in 2020. Their outlooks for 2021 food prices were left unchanged from their outlook issued in August.
| Rural Advocate News | Tuesday September 29, 2020 |
Beijing Asks Food Importers to Avoid Frozen Foods From Countries With High COVID Infection Levels The city of Beijing is calling on food importers to avoid frozen food from countries with high levels of COVID-19 outbreaks, according to a statement from the Beijing Municipal Commerce Bureau. "Customs and local governments have repeatedly detected the coronavirus in imported cold chain food, proving it risks contamination," the agency said in a statement issued to import companies, according to Reuters. The agency also told food importers to "proactively avoid importing cold chain food from areas heavily hit by the coronavirus" and make alternative plans for imports. Chinese authorities said they had suspended some seafood imports from two Russian vessels and a Brazilian company after COVID-19 was found in samples.
| Rural Advocate News | Tuesday September 29, 2020 |
Tuesday Watch List Markets An index of U.S. consumer confidence is due out at 9 a.m. CDT and is Tuesday's only official report. The latest weather forecasts will be watched for the U.S., the Black Sea Region and for South America. Traders will also be watching for any trade news that develops. Weather With a front pushing showers into the East Coast, mostly dry conditions are expected for the primary growing regions on Tuesday. Some breezy winds in the Plains may help with dry down as well.
| Rural Advocate News | Monday September 28, 2020 |
House Passes a Clean Energy Bill The House of Representatives passed a broad bill that intends to help the U.S. boost energy efficiency and renewable energy sources in an effort to combat climate change. The Hill says the chamber passed the 900-page Clean Energy and Jobs Innovation Act by a 220-185 vote. The legislation intends to create research and development programs for different forms of energy, including solar, wind, advanced geothermal energy, and hydroelectric power, as well as new ways to lower pollution from fossil fuel production. The bill also establishes more rigorous building codes and bolsters energy efficiency requirements and weatherization programs. A similar energy innovation bill was introduced in the Senate earlier this year but seemed to stall until recently. The Senate bill is moving again after lawmakers agreed on an amendment seeking to phase down the use of a type of greenhouse gas. A senior House Democratic aide tells The Hill that if the Senate can pass its own bill, the chambers can go to conference to settle any disagreements. While Democrats support the bill, Republicans point out that it will cost over $135 billion. Three House GOP members says the bill is “full of government mandates that will make Americans pay more money for everything from the vehicles they drive to heating and cooling their homes.” ********************************************************************************************** Biofuel Groups Applaud House Passage of RFS Integrity Act Growth Energy is happy about the inclusion of the Renewable Fuel Standard Integrity Act contained in the clean energy legislation that passed the House last Thursday. The act was authored by House Ag Committee Chair Collin Peterson, along with representatives from other ag states like South Dakota, Iowa, Illinois, and Kansas. It is designed to bring much-needed transparency to the Environmental Protection Agency’s secretive small refinery exemption process and ensure refiners meet biofuel blending requirements. “After years of EPA mismanagement, the legislation will finally give farmers and biofuel producers a long-overdue peek at EPA’s secretive and destructive process,” says Growth Energy CEO Emily Skor. The National Biodiesel Board is also pleased that the act is included in the House clean energy bill. The provision would set a June 1 deadline for annual small refinery exemption petitions, ensuring they’ll be accounted for in the RFS calculations. Also, the bill would require public disclosure of the volumes of biofuels potentially impacted by the petition, along with the name of the petitioner. Kurt Kovarik, NBB VP of Federal Affairs, says, “This is a commonsense step to ensure that RFS biomass-based diesel volumes are fully met and prevent a recurrence of the demand destruction for biodiesel that we’ve seen for the last seven years.” ********************************************************************************************** AGs Against Eliminating Swine Slaughter Line Speeds Seven attorneys general and two agriculture groups get to file briefs in a lawsuit challenging a USDA rule that eliminated line-speed limits at swine slaughter plants. A DTN report says on October 1 of last year, the Food Safety Inspection Service finalized the rule that cut the number of federal inspectors by 40 percent at swine plants while also eliminating limits on line speeds. The United Food and Commercial Workers International Union filed a lawsuit six days later, asking the U.S. District Court in Minnesota to set aside the rule. The union says USDA didn’t take into consideration how it would affect safety issues and risks for line workers. The seven AGs will file a brief in support of a motion for summary judgement filed by the workers union. Additionally, the National Pork Producers Council and the North American Meat Institute will file a brief in support of the USDA motion for summary judgement. The plaintiffs allege in the lawsuit that “USDA’s failure to consider overwhelming recorded evidence that indicates faster line speeds subject workers to substantially increased risk of injury was arbitrary and capricious.” The workers union also says USDA didn’t provide an adequate reason for the decision to reduce the number of federal inspectors by 40 percent at each site. *****************************************t***************************************************** Ag Groups Want U.S. to Remain in WTO A coalition of 62 leading U.S. agriculture stakeholders are asking for continued U.S. membership in the World Trade Organization. A Corn Refiners Association release says the groups sent a letter to U.S. Trade Representative Robert Lighthizer, as well as leaders of the Senate Finance, House Ways and Means, and the House and Senate Ag Committees calling for effective WTO reform. That reform would enhance the ability of American agriculture to access foreign markets and maintain transparency and accountability critical to future export growth that will help to support American jobs. The letter also identifies characteristics they’re looking for in the next WTO Director General. “The WTO is fundamental to a rules-based system of international trade,” says John Bode, President and CEO of the Corn Refiners Association. “As long as exports are important to U.S. agriculture, WTO membership will be essential. This is critical to the one-fifth of the U.S. economy that is related to agriculture.” The letter does note the need for the WTO to institute updated rules in order to keep pace with global economic changes and calls for increased accountability among members. A transition in leadership “presents a great opportunity to successfully implement reform and reinvigorate its negotiating function under a new Director General.” ********************************************************************************************** China Officials Downplay Fears of Grain Shortages Beijing wants the rest of the world to know that the most-populated country in the world is not looking at a grain shortage. China’s Ag Minister is blaming speculators for rapidly rising corn prices which are stoking fears about a possible shortage in the Asian nation. Corn prices in China recently hit an eight-year high following events like typhoons and flooding that damaged the nation’s Corn Belt. The South China Morning Post says it saw firsthand that large areas of cropland were flattened. As a result, local farmers are concerned about a steep drop in what they can produce. Chinese corn imports, used mainly in animal feed, hit the highest level in almost 30 years during the first eight months of 2020, increasing anxiety about a possible domestic supply gap. However, the nation’s Minister of Agriculture and Rural Affairs says the surging prices were caused by “market speculation and irrational hoarding.” He says the country has ample supplies of corn and is set to harvest another bumper crop in the autumn, despite the impact of natural disasters in two provinces that account for 25 percent of China’s corn production. “New corn will enter the market soon and the supply will further increase,” he says. “Corn prices are already starting to stabilize.” ********************************************************************************************** Next Generation Fuels Act Introduced in House Higher-octane fuels like mid-and-high-level ethanol blends are mutually beneficial for drivers, farmers, and the environment. Because of that, Representative Cheri Bustos (BOOS-tohs) introduced the Next Generation Fuels Act, which would increase gasoline octane to a minimum standard of 98 Research Octane Number (RON) through low-carbon renewable fuels. The National Farmers Union, a long-time supporter of higher blends of ethanol, is pleased with the bill’s introduction. “There are so many reasons to widely adopt low-carbon, high octane ethanol blends,” says President Rob Larew. “They significantly improve vehicle fuel efficiency, which reduce greenhouse gas emissions.” He also says the new standards would create new markets for family farmers, supporters of rural economic growth, and offer a cost-effective fuel for American drivers. Growth Energy is also pleased with the introduction, saying it will unleash higher-octane, lower-carbon fuels that offer drivers better mileage and fewer emissions. “There has never been a more urgent need to adopt higher-octane, low carbon ethanol blends into America’s fuel supply, as they are key to achieving clean, healthy air,” says Growth Energy CEO Emily Skor.
| Rural Advocate News | Monday September 28, 2020 |
Washington Insider: Wall Street Volatility Warning In response to President Donald Trump's promise to dispute the election outcome if he loses, “Wall Street's taking him at his word.” Several market reports are noting that volatility markets from stocks to currencies and bonds show “investors bracing for turbulence not just on election day, but for the ensuing weeks as well.” The fear is that results from the Nov. 3 vote – already the most expensive event to hedge against ever – won't be clear enough that a winner emerges without a protracted legal battle. For example, Bloomberg notes that, the election outcome itself, once you know it, that would have meaningful but not an oversize impact on the market. But the prospect of it becoming a “complete mess” is another element that people don't really know how to price. There are a lot of factors pressuring the stock market right now and the potential for a hotly contested result is certainly one of them, especially as there is already “so much social tension,” said Mark Luschini, chief investment strategist at Janney. Many argue now that an unknown election result is increasingly becoming conventional wisdom on Wall Street. “A contested election has become the baseline,” JPMorgan Chase strategist John Normand wrote in a recent note to clients. The United States has seen bitterly disputed presidential election results in the past, and many remember that in 2000, it took weeks to decide the race between George W. Bush and Al Gore. Legal battles raged over the recount in Florida with the Supreme Court finally weighing in to stop the recount and award the election to Bush. Stocks slid throughout that period. But 2020 is widely seen as a vastly different and more combustible environment, sparking growing unease among investors about the “impact of a muddled election result.” The U.S. also continues to face a brutal pandemic that has killed more than 200,000 Americans and spurred a massive economic decline, Politico notes. While the backdrop in 2000 came amid a dot-com stock bubble in the process of deflating, the economy was still expanding. “The fear is that if we get a disputed election, it could lead to disruption and possibly even violence. If so, we could well see markets take a significant hit,” Brad McMillan, chief investment officer at Commonwealth Financial Network, said. “In 2000, the hanging chad debacle in Florida hit markets, and this election could well be even more disputed than that one.” Still, most Wall Street executives, traders and investment analysts widely expect the market environment to calm quickly after the election if the result is clear. For example, markets could rally on a Trump win based on the expectation of continued low tax rates and a relaxed approach to corporate regulation. A Biden win, especially if Democrats also take the Senate, could spark a short-term sell-off on fears of increased taxes on corporations and the wealthy – though that possibility is increasingly baked into expectations. Certain sectors also could face new regulation, including banks. However, a Biden win could also reduce some of the tension generated by Trump's trade wars and generally produce a less volatile daily political environment, tempering any initial sell-off. Total Democratic control would also likely lead to significant new fiscal stimulus, generally viewed as a positive on Wall Street. But the fear that is growing more intense by the day is that markets will have no idea – perhaps for weeks or months—about who will get inaugurated next Jan. 20. Numerous market reports see a “rush for volatility protection” well into December. Already, the “volatility futures curve remains elevated past the election.” Politico says. Goldman Sachs cautioned Friday that a delayed outcome is only a “tail risk” and not the most likely outcome but markets have “even more to worry about right after the vote.” The Fed will meet the week of the election for the first time since 1984, while October's jobs report will be released that Friday. Together, these uncertainties are forcing traders to protect against volatility weeks after the election passes, several reports say. November futures – which reflect the market's expectations for volatility through Nov. 18 – are more expensive than October, while December futures prices have been creeping higher as traders increasingly anticipate a delayed result.” Even the Treasury market, where unprecedented Fed support has muted swings for months, is showing signs of anxiety, Politico says. Expectations for price volatility in three months versus four weeks are at a level only exceeded once in the past decade. Some traders have been buying options to hedge a potential rush of capital from investors fleeing stocks. So, we will see. Wall Street's concerns are widely shared across the economy right now and the situation seems unlikely to calm itself in the near term. These are certainly fights producers should watch closely, and which are likely to be both contentious and bitter, Washington Insider believes.
| Rural Advocate News | Monday September 28, 2020 |
USDA Chief Economist Addresses COVID, China Buys Of US Ag Goods A blog post this week from USDA Chief Economist Rob Johansson outlines several factors that have been impacting U.S. agriculture, including global overproduction of several commodities. He also notes the recent rise in Chinese purchase of several U.S. ag commodities, but does not delve into recent USDA WASDE outlooks that did not appear to acknowledge what he points out relative to China “signaling” they will go beyond their corn tariff-rate quota (TRQ), for example. But a portion of the woes facing U.S. agriculture now were fostered in party global overproduction of several commodities over the 2014-2018 period.
| Rural Advocate News | Monday September 28, 2020 |
Farm, Food Groups Tell Trump WTO is Important to US Agriculture More than 50 agriculture groups and businesses say the U.S. should remain a World Trade Organization (WTO) member and work with other members to revamp rules to modernize the global institution. WTO supporters are concerned that President Trump might withdraw the U.S. from the institution. Many in U.S. agriculture say that could be detrimental to farm and food sectors that rely on export markets. In a letter to U.S. Trade Representative Robert Lighthizer, the groups and businesses said U.S. agriculture has largely benefited under the WTO, but said the body's rules need updating. The letter was also sent to the chairmen and ranking members of the House and Senate Agriculture committees and to the Democratic and Republican leaders of the House Ways and Means and the Senate Finance committees. “While the WTO has been beneficial for U.S. agriculture, its rules have not kept pace with changes in the global economy, and improvement is needed to hold members accountable and improve the organizations' governance,” the letter said. “Continued U.S. membership and active participation will help ensure that necessary reforms are undertaken, and that the WTO will continue to play an important and effective role in economic development of the United States and our trading partners. As long as exports are important to U.S. agriculture, WTO membership will be essential as well.”
| Rural Advocate News | Monday September 28, 2020 |
Monday Watch List Markets Traders will start the week looking at the latest weather forecasts for the U.S., Black Sea region and South America and pause at 8 a.m. CDT to see if USDA has any export sales announcements. USDA's weekly grain inspections report is out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. CDT, including USDA's latest estimates of row crop harvest progress. Weather A frontal boundary will bring scattered light to moderate showers to the eastern Midwest and Delta region on Monday. Isolated showers will also occur later today across the western Midwest. Showers will boost soil moisture for winter wheat planting in the eastern Midwest, but cause some harvest delays.
| Rural Advocate News | Friday September 25, 2020 |
New Report Examines Cattle Market Issues and Solutions A new report unveiled by the American Farm Bureau Federation provides an in-depth examination of the causes and price implications resulting from extreme market volatility in the cattle industry. It also sets the stage to explore policy solutions. The Cattle Market Working Group, comprised of ten state Farm Bureau presidents, spent more than two months investigating factors that led to market disruptions following the Holcomb packing plant fire and the COVID-19 pandemic. Farm Bureau President Zippy Duvall says of the report, “We must work toward a more stable, resilient food supply chain that can better endure unforeseen challenges.” The report is designed to equip state and county Farm Bureau organizations with deep insight and policy considerations as Farm Bureau leaders debate policy recommendations for 2021. Key topics of the report include mandatory minimum negotiated trade, risk management and education, small capacity meatpacking, and strengthening the Grain Inspection, Packers and Stockyards Administration’s ability to enforce market rules. ************************************************************************************ Coalition Seeks CCC Funds for Farm Workers More than 160 farm groups as part of the Agriculture Workforce Coalition want Commodity Credit Corporation funds to help protect farmworkers. In a letter to Vice President Mike Pence, the coalition says, "We ask for your help as we continue to promote the health and safety of our farm employees and rural communities." Pence is head of the White House Coronavirus Task Force. As part of the group's recommendations, they suggest the federal government Help farmers offset COVID-19 mitigation expenses, while maintaining existing farm programs, by increasing Commodity Credit Corporation funds. These expenses include housing, transportation, retrofitting workplaces, testing, and training and compliance activities, among others. Other recommendations include prioritizing PPE and future vaccine distribution for the food and fiber supply chain, ensure COVID-19 testing resources are accessible to agricultural employers, and allow the use of alternate housing structures, such as FEMA trailers or RV’s to facilitate greater social distancing. ************************************************************************************ California Governor Signs Order to Ban Gas-powered Cars by 2035 California Governor Gavin Newsom this week signed an executive order to phase out gas-powered cars by 2035 in the state. The executive order directs the state to require that, by 2035, all new cars and passenger trucks sold in California be zero-emission vehicles. Newsome says, "This is the most impactful step our state can take to fight climate change." Following the order, the California Air Resources Board will develop regulations to mandate that 100 percent of in-state sales of new passenger cars and trucks are zero-emission by 2035. In addition, the Air Resources Board will establish rules to require that all operations of medium- and heavy-duty vehicles shall be 100 percent zero-emission by 2045 where feasible. Via Twitter, the National Corn Growers Association stated, “Corn farmers agree…that clean, renewable fuels have a major role to play,” adding, “Let’s work together to unlock the substantial environmental benefits that increased blends of low carbon, high octane ethanol can deliver.” ************************************************************************************ TFI Releases Fertilizer Industry Economic Impact Study The Fertilizer Institute Thursday released the Fertilizer Industry Economic Impact Study. The study highlights the U.S. fertilizer industry's importance and economic contributions to the national, state and local economies. The study found that the fertilizer industry contributed over $130 billion and nearly 500,000 jobs to the U.S. economy in 2019. TFI President and CEO Corey Rosenbusch responds, “The fertilizer industry doesn’t just help grow the food on your dinner table, we also help grow the U.S. economy.” Deemed an essential industry during the COVID-19 pandemic, fertilizer manufacturers, wholesalers, retailers and distributors have a sustained positive impact on communities all across the nation. Additionally, Rosenbusch says the movement of fertilizer alone benefits the economy to the tune of nearly $9 billion annually. The publication of the study, conducted for TFI by John Dunham and Associates, is the culmination of months of compiling data from the entire fertilizer supply chain. ************************************************************************************ Midwest lawmakers Seek Funding for Missouri River Navigation Lawmakers from Lower Missouri River states this week penned a letter urging the U.S. Army Corps of Engineers to provide additional funding for navigation projects along the river. The lawmakers say many farmers, industries and small businesses in the Midwest rely on the Missouri River to transport goods. High water levels and record flooding in 2019 have prevented the Corps of Engineers from completing repairs on water infrastructure projects, which has led to dangerous accidents that have significantly disrupted commerce on the river. The lawmakers write, “there is a critically dire situation related to navigation challenges in several areas along the Missouri River where serious barge traffic accidents have occurred.” The Corps’ Kansas City District has received $20 million in emergency supplemental funds to conduct work along the navigation channel. However, the lawmakers estimate the need at $200 million. The Corps estimates that high water in the last three years damaged 50-75 percent of the 7,000 river training structures that make up the Bank Stabilization and Navigation Project. ************************************************************************************ State and County Fair Support Gaining Momentum in Congress A bill providing support to state and county fairs is gaining momentum this week. Senator Doug Jones, an Alabama Democrat, introduced companion legislation to a House bill that would establish funds to offset revenue losses for state and county fairs. The Protecting Fairs During Coronavirus Act, introduced in the House by Representative Josh Harder, a California Democrat, would establish a $5 billion federal grant program for state and county fairs. The fund would offset fair revenue losses during the Coronavirus pandemic and would be available for both 2020 as well as 2021. States could apply for aid from the Department of Agriculture and then distribute the funds to fairs in their state. Senator Jones says, “State and county fairs are not just an important part of our social fabric, they’re also a key part of the agriculture business.” Harder stated, “Working together, we will continue pushing to get our fairs the relief they need to weather this storm.”
| Rural Advocate News | Friday September 25, 2020 |
Washington Insider: Fed Inflation Approach Criticized Bloomberg is reporting this week that the Fed's new “hot” approach to the economy is raising questions “in some quarters.” Asset managers who've guarded against inflation during a decade of easy money and ballooning deficits have little to show for their efforts. That's still not stopping some from hedging that risk, Bloomberg says. Thirty-year market veteran Matthew McLennan of First Eagle Investment Management is among those warning that price pressures are coming down the road. He's betting easy money and further hits to productivity will spark inflation, making bigger companies with pricing-power and competitive advantage a good wager. He's also piling into gold as a pure hedge against the erosion of value caused by inflation. However, Bloomberg thinks McLennan is in the minority. The Federal Reserve's aim to let inflation run hot draws mostly derision across Wall Street after the central bank has failed to lift prices toward its 2% target for years. Even Fed officials themselves made clear Wednesday that they can't do it all, stressing that fiscal stimulus is critical to sustaining the economic recovery. Even so, some still see increased potential for inflation bubbling up. “If you think about what the Fed's inflation averaging means, it means they might be happy to see inflation move over time from 1% to 2% to 3% to 4%, while interest rates remain close to zero,” said McLennan, head of the global value team at First Eagle, which manages about $101 billion in assets. “That also means that real interest rates go down more.” What might make things different this time is that secondary impacts of the pandemic may add to growing productivity bottlenecks and America's deficit keeps surging, says McLennan. Add to that the fact that the U.S. dollar is losing its luster, he said. The fresh wave of deglobalization underfoot and second phase pandemic impacts both bode poorly for productivity, said McLennan, who was co-portfolio manager of the global equity partners group at Goldman Sachs Asset Management in London prior to joining First Eagle in 2008. That means, for him, that inflation reignites amid a backdrop of slow economic growth. Continued weakness in the dollar, with the Bloomberg Spot Dollar Index down about 9% from this year's high in March, buoys inflation through rising import prices as well. Among the array of products McLennan helps manage is the $43 billion Global Fund, which had gold as its biggest holding at about 13%, according to Bloomberg data as of Aug. 31. Another one he steers, the U.S. Value Fund, had Oracle Corp., Comcast Corp and Colgate-Palmolive Co. as it top three holdings. The Fed targets inflation as measured by the personal consumption expenditure price index. It also pays close attention to a core reading of that gauge which strips out volatile food and energy prices. Both barometers have plummeted since the pandemic. There are other notable investors and corporate heads warning on inflation, also, Bloomberg observes. Earlier this month Stan Druckenmiller said there's a chance that inflation could hit 5% to 10% in the next four to five years. Druckenmiller was the founder and manager of Duquesne Capital – and managed the Quanturn Fund with George Soros. McLennan prefers gold over other favored fixed-income hedge vehicles like Treasury inflation-protected securities, given there's a limited supply of the shiny metal. The Fed's monetary stimulus already pushed key measures of the U.S. money supply up by double digits. “The rate of supply growth of gold is less than 2% a year, bringing us back to the idea of scarcity value,” McLennan said. Traders see consumer price inflation averaging about 1.6% over the next 10 years, based on so-called breakeven rates garnered by TIPS and nominal Treasuries. That's down from an 8-month high on Sept. 1. Gold prices have also ebbed, both likely driven lower in part on the inability of Congress to agree on a phase four fiscal stimulus package. The global recovery also risks losing steam as virus cases rise and some nations roll back reopening measures, Bloomberg said. And, it sees the U.S. presidential election as another wild card. “If we get a Democrat clean sweep it's more likely than not we are going to see more rapid growth in the federal register and regulation” which tend to reduce productivity, McLennan said. Slow grow and rising inflation are probable with “these productivity bottlenecks coming with a Fed that's willing to let inflation run hot.” So, we will see. Clearly, inflation is a trend deeply feared by many who remember bouts in the recent past. However, the current priorities are economic growth and jobs recovery and the Fed is likely to push for its inflation targets to achieve those goals — trends producers should watch closely as these economic debates intensify, Washington Insider believes.
| Rural Advocate News | Friday September 25, 2020 |
WTO Members Press U.S. On Farmer Aid The U.S. Coronavirus Food Assistance Program (CFAP) and Market Facilitation Program (MFP) efforts have caught the attention of WTO members, as Canada, the EU, India, Australia, Brazil, Paraguay, New Zealand, Uruguay, Paraguay and Colombia used a WTO session this week to criticize the U.S. efforts. They are calling on the U.S. to explain the around $34 billion in what they consider trade-distorting payments in 2019. The WTO cap for those “amber box” subsidies is $19.1 billion. The countries also raised the latest up to $14 billion CFAP 2 program announced last Friday. But countries also raised questions about aid the EU is providing to its farmers in response to the COVID-19 situation, indicating that all countries have taken actions to help their farmers in the wake of the pandemic.
| Rural Advocate News | Friday September 25, 2020 |
USDA's Perdue Likes China Ag Buys, But Wants to See Shipments USDA Secretary Sonny Perdue this week said he is hopeful that China can meet its purchase commitments of U.S. farm products via the Phase One trade deal by February, the end of the first year of the deal. Perdue said “it is going to be tough to meet those numbers ($36.5 billion first year). This is just purely a guess; we may reach it by the end of January before Brazil and South America come back into the marketplace.” While there are hefty export sales on the books, Perdue said he wants to see shipments, saying China is known for booking and later cancelling sales. “It does appear they are trying, but it remains to be seen if we will make those numbers or not.” Data for the week ended September 17 from USDA included the following export sales figure for China for 2020/21: Net sales of 566,427 metric tons of corn, 262,400 mt of sorghum, 1,879,091 mt of soybeans, 39,482 running bales of upland cotton, but net reductions of 600 metric tons of wheat. For 2020, USDA reported net sales of 3,396 metric tons of beef and 8,161 metric tons of pork. Shipments of U.S. ag products to China also continues, with exports the week ending September 17 including 58,370 mt of wheat, 204,368 mt of corn, 71,552 mt of sorghum, 769,309 mt of soybeans, 117,690 running bales of upland cotton, 1,200 mt of beef and 10,943 mt of pork.
| Rural Advocate News | Friday September 25, 2020 |
Friday Watch List Markets Friday's official reports include U.S. durable good orders for August at 7:30 a.m. CDT and USDA's monthly cattle on-feed report, due out at 2 p.m. CDT. Other market interests include the latest weather forecasts for the U.S., Black Sea region and South America, as well as any trade news that develops. Weather Friday will again be dry and open for row crop harvest and winter wheat planting in primary crop areas. Temperatures will be above to much above normal, adding to crop drying. Rain will be confined to the far southeastern U.S. with harvest disruption and possible crop quality impact.
| Rural Advocate News | Thursday September 24, 2020 |
Farm Groups Applaud CCC Agreement The decision by House lawmakers to include Commodity Credit Corporation funding in the continuing resolution demonstrates their support for America’s farmers, according to the American Farm Bureau Federation. The stopgap measure provides nearly $8 billion for nutrition assistance programs, replenish the Commodity Credit Corporation, and stipulate some Congressional oversight of spending through CCC. Farm Bureau Federation President Zippy Duvall says, “While we were disappointed it recently became a political flashpoint, we are pleased lawmakers on both sides of the aisle recognize that these funds help to sustain conservation programs and stock America’s pantry.” National Farmers Union President Rob Larew stated, “We are relieved that the House has come to an agreement.” The agreement, passed by the House 359-57, keeps the federal government funded through December 11. Republicans and some House Democrats representing rural areas were critical of the original House proposal that didn’t include CCC funding. Democrats were seeking accountability in the program, referring to a White House proposal that would have used CCC funds for oil companies. ************************************************************************************ Cattle Market Transparency Act Introduced The Cattle Market Transparency Act introduced this week seeks to restore transparency and accountability in the cattle market. Senator Deb Fischer, a Nebraska Republican, introduced the bill. Fischer says, “The past few years have been very difficult for producers.” Fischer noted the Tyson Foods plant fire in Kansas, and supply chain challenges due to COVID-19. The bill would establish regional mandatory minimum thresholds of negotiated cash trades to enable price discovery in cattle marketing regions. It requires the Secretary of Agriculture to establish regionally sufficient levels of negotiated cash trade, seek public comment on those levels, then implement. The legislation also requires USDA to create and maintain a library of marketing contracts between packers and producers, and require packers to supply the information to USDA. The bill also would mandate that a packer report the number of cattle scheduled to be delivered for slaughter each day for the next 14 days. This requirement already exists for the swine industry. ************************************************************************************ Senate Hearing Focuses on Changes to the Endangered Species Act A Senate Environment and Public Works Committee hearing Wednesday focused on efforts to modernize the Endangered Species Act. The Endangered Species Act Amendments Act of 2020 reauthorizes the ESA for the first time since 1992. Florida rancher Liesa Priddy says the legislation, “will be better for ranchers, better for states, better for the federal authorities, and better for the species.” Priddy testified on behalf of the National Cattlemen’s Beef Association and the Public Lands Council. The organizations support the legislation that they say empowers states to lead recovery efforts and gives stakeholders, like ranchers, who make significant investments in voluntary conservation a more meaningful seat at the table in recovery discussions. Senator John Barrasso, a Wyoming Republican, says state and local experts need to be leading efforts to protect local wildlife. His legislation will increase local input and improve transparency in the listing process. Barrasso says the bill also protects endangered species and helps communities invest in more conservation and recovery activities. ************************************************************************************ Ethanol and Farm Groups Call on EPA to Reject Remaining Waivers A coalition of farm and ethanol groups want the Environmental Protection Agency to take the “next step” in denying waivers under the Renewable Fuel Standard. While the groups say EPA’s recent announcement that it has denied 54 petitions for “gap year” small refinery exemptions under the RFS was indeed a big step forward, “there is more work to be done to fully restore integrity to the RFS.” There are 50 exemption petitions still awaiting a decision, and EPA still has not released the 2021 RVO proposal. The Renewable Fuels Association, American Coalition for Ethanol, National Corn Growers Association and National Farmers Union worked together and won a unanimous federal court decision in January that they say should have put an end to EPA’s abuse of the refinery exemption program. There are 17 gap-year petitions remaining and 33 pending exemption requests for 2019 and 2020. In a press conference Wednesday, Renewable Fuels Association President and CEO Geoff Cooper stated, “EPA needs to reject those the second they come through the front door,” from the Department of Energy. ************************************************************************************ Cross-Industry Collaboration Launches Million-Acre Grazing Initiative The Walmart Foundation, Cargill and McDonald's are investing more than $6 million in an initiative led by the World Wildlife Fund that aims to improve the grasslands of the Northern Great Plains. The new program, known as the Ranch Systems and Viability Planning, or RSVP network, will support ranchers across the ecoregion-focusing primarily on Montana, Nebraska and South Dakota. The Network will provide technical expertise, training and tools to help advance grazing practices that improve the health of the land. By improving management of one million acres over five years and avoiding conversion, the effort will increase carbon storage and sequestration, improved water infiltration, and better biodiversity outcomes. Kathleen McLaughlin of the Walmart Foundation says, "Collaborative efforts like this can accelerate innovative, sustainable solutions and support ranchers in the beef supply chain." The World Wildlife Fund will work with ranchers on private and tribal lands to provide extension services in one-on-one and group workshops, offer ongoing technical expertise and provide cost-share and monitoring to help ranchers design, document and implement ranch plans. ************************************************************************************ General Mills to Reduce Greenhouse Gas Emissions General Mills announced a pledge to reduce absolute greenhouse gas emissions by 30 percent across its full value chain - from farm to fork to landfill - over the next ten years. The company also committed to a long-term goal to achieve net-zero emission levels by 2050. The absolute greenhouse gas commitment was calculated using methodologies approved by the Science Based Target Initiative that model a level of emission reductions that science suggests is necessary to sustain the planet's health. The framework focuses on advancing regenerative agriculture across the company's sourcing footprint on one million acres by 2030. General Mills says up to one-third of greenhouse gases stem from the food system, and an estimated 80 percent of which comes from agriculture. In 2019, General Mills committed to advancing regenerative agriculture on one million acres of farmland by 2030. The company defines regenerative agriculture as holistic, principles-based farming and ranching that seeks to strengthen ecosystems and community resilience.
| Rural Advocate News | Thursday September 24, 2020 |
Washington Insider: House Passes Stop Gap Funding Bill The House passed a stopgap funding measure “through Dec. 11” on Wednesday night, overcoming a fight over farm and nutrition aid and preparing for a frantic lame duck session at the end of the year. The bill now heads to the Senate, where its “chances of passage are good” after Republicans got the farm aid they demanded. The stopgap would provide $21 billion spending authority by accelerating the reimbursement of USDA's Commodity Credit Corporation (CCC). It also would provide almost $8 billion in funds to feed children who normally receive school lunches — an increase from the $2 billion Democrats had earlier considered. Lawmakers from agriculture-heavy states, including some centrist Democrats, pushed for the farm aid measure after President Donald Trump last week announced $13 billion in “farm aid” through the Commodity Credit Corporation. On Monday, Democrats had released a version of the measure that did not contain the farm bailout provision, enraging Republicans and putting passage of the bill in doubt — and thus raising the chances of a government shutdown. It also became apparent that House Speaker Nancy Pelosi, D-Calif., did not have the votes to pass it. Democrats have complained that Trump administration farm relief has favored southern states such as Georgia — a key swing state and home of Agriculture Secretary Sonny Perdue — and larger producers. “The Trump Administration has proven they cannot be trusted to distribute payments fairly,” said Sen. Debbie Stabenow, D-Mich., top Democrat on the Senate Agriculture Committee. She added that the Agriculture Department doesn't need the authority to meet farm bill obligations. But other Democrats, including endangered House incumbents in states like Iowa and Minnesota, pressed for the farm aid, the Washington Post reported. The stopgap funding bill also comes as negotiations on a huge COVID-19 relief bill remain stalled and as the Capitol has been thrust into an unprecedented political drama with Supreme Court Justice Ruth Bader Ginsburg's death, which has launched an intense election-season Senate confirmation fight. The spending proposal, called a continuing resolution, or CR, in Washington-speak, would keep every federal agency running at current funding levels through Dec. 11, which will keep the government afloat past the election and possibly reshuffle Washington's balance of power. Appropriators have committed to trying to pass an omnibus spending measure by Dec. 11, Speaker Pelosi said on Wednesday. Bloomberg called that “an ambitious goal in less than three months, indicating lawmakers could assemble a few large packages, if not a single 12-bill omnibus measure.” The House passed 10 of its 12 bills, but Senate appropriators have not marked up or release any appropriation bills. “We'll proceed with what we have accomplished on the floor of the House, they'll post what their bills might be, our appropriators will go to conference,” Pelosi said, adding that appropriators have a bipartisan, bicameral agreement to try to have an omnibus “finished by Dec. 11.” The continuing resolution released and passed yesterday doesn't follow an earlier agreement to leave coronavirus measures out of the stopgap funding bill — but Democrats got a substantial amount of food aid funds in return, Pelosi said in the interview yesterday. “The definition of a clean CR on the Republican side is, 'What we want should go in there, what you want shouldn't,'” she argued. In a side note, Bloomberg noted that Rep. Debbie Wasserman Schultz, D-Fla., is vowing to bring back earmarks, with new transparency requirements, if she's chosen as the next House Appropriations chairwoman, according to a plan she released for the 117th Congress. She is up against Reps. Rosa DeLauro, D-Conn. and Marcy Kaptur, D-Ohio, among Democrats in the race to succeed retiring Chairwoman Nita Lowey, D-N.Y. DeLauro and Kaptur both have more seniority but Wasserman Schultz has sought to garner support through specific proposals to change how the panel operates — including a July plan to create an advisory panel on inequity in federal spending. Under Wasserman Schultz's proposal, in addition to reviving earmarks, the full committee would “hold hearings outside of appropriations season,” in order to expand its overall level of work; start an advisory committee with members from key caucuses; hold freshman orientation and “Appropriations 101” workshops; reestablish the House Appropriations Select Intelligence Oversight Panel; and expand the chairwoman's member services team. Wasserman Shultz proposed making the earmark process more transparent than it was before it was banned by House Republicans in 2011. Those changes include prohibiting earmarked funds from going to for-profit businesses, posting earmarks publicly, creating an online database of earmarks, and calling for an annual earmark audit by the Government Accountability Office. So, we will see. Almost everything is toxic these days, and the fog of battle is unusually dense, observers say. However, the battles are increasingly important and should be watched closely by producers as the process intensifies, Washington Insider believes.
| Rural Advocate News | Thursday September 24, 2020 |
Reuters: USDA Making COVID Aid Payments To Tobacco Farmers From New Account USDA will be making payments to tobacco farmers under the Coronavirus Food Assistance Program 2 (CFAP 2) effort via a new account established under the office of the secretary, according to a report from Reuters. The payments of up to $100 million to tobacco farmers will not come from the Commodity Credit Corporation (CCC) funding but from this new account established in the wake of how Congress divvied up money to USDA in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. A change in law in 2004 prevented CCC funds from being used to make payments to tobacco farmers, and USDA told the news service it is tracking the money. The CARES Act provided $9.5 billion in relief funding for agriculture, allocating those funds to the office of the agriculture secretary.
| Rural Advocate News | Thursday September 24, 2020 |
Senators Call for Removal of Trade Program's Rice Tariff Barriers A group of U.S. senators are calling on the Trump administration to reform the Generalized System of Preferences (GSP), the largest and oldest trade preference program. The lawmakers want the reforms to level the playing field for American rice producers. GSP provides duty-free treatment to goods from developing countries to promote economic growth in those nations. In recent years, highly subsidized rice growing competitors have taken advantage of this program to increase rice exports to the U.S. at the expense of American producers, rice proponents note. In a letter to U.S. Trade Representative Bob Lighthizer — authored by Sen, John Boozman, R-Ark., and others — the members shared their support for the USA Rice Federation's petition to remove all rice tariff lines from the list of commodities eligible for duty-free import under GSP.
| Rural Advocate News | Thursday September 24, 2020 |
Thursday Watch List Markets Thursday morning's 7:30 a.m. CDT reports include USDA's weekly export sales, weekly U.S. jobless claims and an update of the U.S. Drought Monitor. Traders will watch for a possible export sale at 8 a.m., followed by a report on U.S. new home sales at 9 a.m. CDT and natural gas inventory at 9:30 a.m. The latest weather forecasts will also be checked and USDA's quarterly hogs and pigs report is out at 2 p.m. CDT. Weather Showers and thunderstorms are in store for the northern Midwest and the Mid-South Thursday, causing harvest disruption. A few scattered showers will also be noted in the southern Plains and western Midwest. Dry conditions will be in effect elsewhere to favor row crop harvest and winter wheat planting.
| Rural Advocate News | Wednesday September 23, 2020 |
Biden Campaign Blames Trump for Ethanol Crisis During a virtual press conference Tuesday, the Joe Biden campaign utilized farmers blaming President Donald Trump for the ongoing ethanol industry crisis. The farmers noted how the administration has given oil companies dozens of waivers, reducing demand for ethanol and forcing the closure of refineries across the country. Jim Nichols, owner of a 500-acre corn and soybean farm in Minnesota, stated, “Corn farmers are in terrible shape due to President Trump’s betrayal,” adding, “we need change now.” Chris Gibbs, a farmer from West-central Ohio and president of the Rural America 2020 board of directors, stated, “Rather than supporting corn farmers and making E15 ‘America’s Fuel,’ Trump has consistently undercut this industry and hurt our farmers. Rural America 2020 is a nonprofit that advocates for policies that benefit agriculture and rural America, supporting Joe Biden for president. Last week, Trump’s Environmental Protection Agency announced it would deny petitions for small refinery exemptions for past compliance years, the so-called “gap-filling” petitions for the 2011-18 compliance years. ************************************************************************************ Agreement Reached to Include CCC Funds in CR After days of partisan politics, a continuing resolution passed the House of Representatives Tuesday night including funds for the Commodity Credit Corporation. The White House and Congressional Republicans reached an agreement with House Speaker Nancy Pelosi to include the funding, while prohibiting oil companies from accessing CCC funds. The Trump administration was exploring a plan to use up to $300 million of CCC funds for the oil industry, but dropped the proposal this week. In a statement, Pelosi says, “We have reached an agreement with Republicans on the CR to add nearly $8 billion in desperately needed nutrition assistance for hungry schoolchildren and families. We also increase accountability in the Commodity Credit Corporation, preventing funds for farmers from being misused for a Big Oil bailout.” Senate Agriculture Committee Chairman Pat Roberts, previously critical of Democrats withholding the funds, stated, “Democrats have heard our call, and the calls from farm country, to not ignore rural America when funding the government.” The CR funds the government through December 11. ************************************************************************************ NCGA Exploring Short Term Demand Growth The National Corn Growers Association is actively working to rebuild demand by exploring new incremental opportunities for America’s corn farmers. In partnership with AimPoint Research and primary customer segments, NCGA is developing a short-term demand growth plan that sets the table for long-term success. NCGA President Kevin Ross says, “I don’t have to tell you, this year is unlike any other I’ve experienced in my career, which is why we have to think outside the box and deliver quick wins for corn farmers.” The process of evaluating potential market opportunities started with an intelligence briefing and level setting exercise. In the coming weeks, committees will do a deep dive to develop potential solution sets with analysis for each potential market for corn. By December, a full marketing plan by segment will be unveiled. The primary areas of growth potential are ethanol usage domestically and internationally, expanded export markets for corn and co-products, and industrial segments such as biobased plastics. ************************************************************************************ U.S. Cotton Trust Protocol Launches Nationwide Grower Recruitment Campaign American cotton growers now can join the U.S. Cotton Trust Protocol, a new standard for verifying the sustainability progress of U.S. cotton. As consumers continue to demand eco-friendly products, enrolling in the Trust Protocol will help growers ensure markets for their cotton by verifiably demonstrating the sustainability record of American cotton in the global market. Protocol President Gary Adams says, “growers will now be able to better document their current sustainability programs using a quantifiable, digital platform and that data is assessed and verified by a third-party audit.” The Protocol helps U.S. growers document and showcase their land management and environmental stewardship practices while helping them achieve continuous improvement related to environmental sustainability measurements. Each participating grower commits to documenting and tracking their progress toward improving soil carbon health while seeking year over year reductions in soil erosion, overall land use, energy consumption and greenhouse gas emissions. By 2025, the Trust Protocol seeks to have more than 50 percent of all U.S. cotton registered as Trust Protocol Cotton. ************************************************************************************ Army Corps Repairing Missouri River Navigation Channel Multiple issues along the Lower Missouri River's navigation channel are under repair by the Army Corps of Engineers. The Corps’ Kansas City District is addressing priority areas of concern and the damages to river structures that have accumulated during nearly three years of high water. An extended period of high water on the Lower Missouri River, including devastating flooding in 2019, damaged 50-75 percent of the 7,000 river training structures that make up the Bank Stabilization and Navigation Project. The damage caused navigation restrictions as the river returned to normal levels this summer. A District official says USACE is addressing the restrictions and restoring the channel to its nine-foot depth. However, officials say there is insufficient funding to repair all the structures damaged by the 2019 flood. Lack of funding is impacting the ability to make the repairs, and officials say time will be necessary for the structures to fully scour the channel to return it to its authorized nine-foot by 300-foot condition. ************************************************************************************ U.N. Launches Green Cities Initiative to End Hunger A plan by the United Nations Food and Agriculture Organization seeks to transform agri-food systems, end hunger and improve nutrition in and around cities in a post-COVID-19 era. The Green Cities Initiative and Action Plan announced this week aims to improve the livelihoods and well-being of populations in at least 100 cities around the world in the next three years, looking to have 1,000 cities join by 2030. In particular, the initiative is focused on improving the urban environment, strengthening urban-rural linkages and the resilience of urban systems, services and populations to external shocks. Ensuring access to a healthy environment and healthy diets from sustainable food systems, it will also contribute to climate change mitigation and adaptation and sustainable resource management. The new initiative also includes the creation of a "Green Cities Network", where cities of all sizes - from large to medium to small - will exchange experiences on best practices, successes and lessons, as well as build city-to-city cooperation opportunities.
| Rural Advocate News | Wednesday September 23, 2020 |
Washington Insider: Fed Increases Push For Coronavirus Relief The Hill is reporting that Fed chair Jerome Powell will offer testimony this week in what will likely be his last chance to try to push Congress toward another coronavirus relief bill before Election Day. Bloomberg also is reporting that Powell said the U.S. economy “has a long way to go before fully recovering from the coronavirus pandemic and will need further support. The path forward will depend on keeping the virus under control and on policy actions taken at all levels of government.” He appeared before the House Financial Services Committee yesterday. While a recovery is underway, “both employment and overall economic activity, however, remain well below their pre-pandemic levels, and the path ahead continues to be highly uncertain,” he said. U.S. Treasury Secretary Steven Mnuchin also appeared, Bloomberg said and that he and the White House “continue to seek an agreement with both parties in Congress” on another fiscal relief package. The Secretary said that “the President and I remain committed to providing support for American workers and businesses,” he said in a release. “I believe a targeted package is still needed, and the administration is ready to reach a bipartisan agreement.” The hearing with key officials is a quarterly exercise mandated by the Cares Act passed by Congress in March which appropriated about $2 trillion to help speed the U.S. recovery. The pair faced questions about their use of the Act's funds and about what else should still be done. However, Bloomberg also noted that prospects for another round of fiscal support have dimmed somewhat amid spiraling partisan tension over the battle to replace Supreme Court Justice Ruth Bader Ginsburg, with just 42 days remaining before the U.S. election. As expected, Powell and Mnuchin fielded numerous questions about the troubled Main Street Lending Program, a $600 billion Fed facility backed by Treasury funds aimed at providing credit to small-and mid-sized companies, Bloomberg said. It has so far only purchased $1.5 billion in loans. The two officials diverged on the advisability of lowering the minimum loan size for the program with Mnuchin embracing that potential while Powell said smaller loans would require a brand new approach and would be more appropriately managed through the Paycheck Protection Program, which extended forgivable loans to small firms. On the question of whether the Main Street program was taking enough risk, the Treasury chief said he expected the Main Street backstop would take some losses. He didn't speak to reports that the Treasury had advised banks to target zero losses on the loans. Mnuchin also made clear he's eager to reallocate funds initially appropriated under the Cares Act to act as a buffer for Main Street and other emergency lending programs that may no longer be needed. “We would like to spend that money on other areas of the economy that could be better served,” Mnuchin said. “Unfortunately, we do need Congressional authority to use it in other areas.” He also wrote that investors should “prepare for the likelihood Congress won't have the time or the will to pass more fiscal stimulus before the end of the year — and for an even more contested election in the wake of the death of Supreme Court Justice Ruth Bader Ginsburg. The Fed's Federal Reserve Bank of Dallas President Robert Kaplan, who dissented at last week's policy meeting, told The Hill that he doesn't want to commit the U.S. central bank to too much monetary stimulus once the economy has recovered from the coronavirus pandemic. Separately, Federal Reserve Bank of St. Louis President James Bullard said that the U.S. economy has enough momentum to continue its recovery from the coronavirus slump even if Congress fails to pass additional taxpayer support. “I don't think there is as much of an imperative about a new fiscal package as there might have been” in July or August, Bullard said. “It seems like, at least in some broad macroeconomic type of calculation, we have enough resources to cover this.” In addition, there is criticism of the Fed's Main Street Lending Program. Bharat Ramamurti, a member of the congressional oversight commission for the coronavirus response, has called the Main Street Lending Program “a failure,” citing the reported reluctance of banks to furnish loans to struggling companies eligible for the facility. And Sen. Pat Toomey, R-Pa., a member of that commission and the Senate Banking Committee, where Powell will appear Thursday, has called on the Fed to close down programs for purchasing corporate bonds amid a rapid recovery in financial markets. So, we will see. In spite of the widening view that the crisis has passed efforts to move the Congress to offer additional assistance can be expected to continue and possibly to intensify — fights producers should watch closely as they emerge Washington Insider believes.
| Rural Advocate News | Wednesday September 23, 2020 |
EPA Still Shows Pending Gap-Year SRE Requests, Slight Uptick For 2019, 2020 The level of small refinery exemptions (SREs) still shown as being pending at EPA has declined dramatically, with the agency data now showing 17 remain pending for the 2011-2018 compliance years as of September 17. There are two each pending for the 2011, 2012 and 2018 compliance years, three each for 2013 and 2015, four for 2014 and one for the 2016 compliance year. The big reduction is due to EPA announcing they would deny the requests that they had received recommendations from the Department of Energy on. But that did not cover all of the pending gap-year requests. As for the 2019 and 2020 compliance years, EPA data now shows 33 SREs pending for the two years combined, an increase from August data showing there were 31 SREs pending for the 2019 and 2020 compliance years.
| Rural Advocate News | Wednesday September 23, 2020 |
Small Refiner Exemptions from RFS Requirements Remains in the News USDA Secretary Sonny Perdue in Illinois Monday said that there are “no plans” to use the Commodity Credit Corporation (CCC) to make payments to refiners that are denied small refiner exemptions (SREs) under the Renewable Fuel Standard (RFS). “We don't think that qualifies under Charter 5 of the Commodity Credit Corporation Act, and we've informed them of that,” Perdue remarked. “So we'll have to see what happens.” Perdue said President Trump is trying to be fair to both sides on the issue of small refinery exemptions. “He thinks that denying those waivers and complying with the RINs (Renewable Identification Numbers), and that, has hurt some of the small, independents (refiners). That may be the case, but if they need to get that, then they need to find another way to do that.” Meanwhile, Reuters reported, citing two sources, that the Trump administration has dropped a plan to use CCC authority to make payments to refiners denied SRE requests. The administration had been considering paying some $300 million to refiners and tap the CCC authority to do so. But after outcry from Midwest lawmakers and even from refiners, the administration has shelved the plan, according to the report. Late Tuesday, the House of Representatives also passed a short-term funding bill for the federal government that would prevent CCC funds from being used for oil refiners.
| Rural Advocate News | Wednesday September 23, 2020 |
Wednesday Watch List Markets On Wednesday morning we will get a manufacturing Purchasing Manager's Index (PMI) report. At 10:30 a.m., Fed Chairman Jerome Powell will speak on the coronavirus. We will of course be watching for new sales of corn and soybeans to China at 8:30 a.m. central, and we'll watch weather in both the Black Sea and South America. Weather Moderate to locally heavy rain from former Tropical Storm Beta is in store for the Delta Wednesday. The rain will disrupt harvest and may damage open-boll cotton. A few showers will also form in the far northern Plains. Dry and warm conditions elsewhere will allow for continued row crop harvest and winter wheat planting.
| Rural Advocate News | Tuesday September 22, 2020 |
CFAP2 Signup Period Underway The signup period for CFAP2, the additional Coronavirus Food Assistance Program relief, is underway. The signup period opened Monday and extends through December 11. Producers interested in signing up can do so at Farm Service Agency county offices. A Market Intel analysis by the American Farm Bureau Federation details the CFAP2 provisions, which provides nearly $14 billion in relief to farmers and ranchers suffering losses or increased cost after April 15, stemming from the COVID-19 pandemic. Of the $14 billion in CFAP2 support, USDA's cost-benefit analysis estimates corn producers will receive $3.5 billion, or 25 percent of the total CFAP2 resources. Following corn, beef cattle producers are expected to receive $2.8 billion, or 20 percent of CFAP2 funding. Dairy farmers are expected to receive $2 billion, or 14 percent of the available support. Hog producers are estimated to receive $1.7 billion or 12 percent of CFAP2. Soybean producers are estimated to receive $1.4 billion, or ten percent of the funds. Wheat, flat-rate crops, eggs and other commodities are expected to receive $2.5 billion, or 18 percent. ************************************************************************************ Peterson Weighs in on Second CFAP Program from USDA House Agriculture Committee Chairman Collin Peterson of Minnesota overall approves the second Coronavirus Food Assistance Program, but says more sectors need help. Peterson responded to the Department of Agriculture’s CFAP2 announcement stating, “There are some good things in this second CFAP plan,” but adds, “I still want to see help for the ethanol industry that has been hurt by the drop in fuel demand." Peterson also wants the program to include textile mills that are helping to create COVID-19 medical supplies and more support for pork and poultry producers that had to depopulate due to plant closures and support for contract growers who have faced a loss of income. Of note, Peterson welcomed actions in the CFAP2, including simplifying the application process for specialty crop growers and making sure livestock producers, like turkey growers have what they need. Peterson also applauded expansion of the program to all classes of wheat, a request by industry groups. ************************************************************************************ USDA Extends WIC COVID-19 Flexibilities The Department of Agriculture Monday announced the extension of more than a dozen nutrition program flexibilities during the COVID-19 pandemic. The extension ensures participants in the Special Supplemental Nutrition Program for Women, Infants and Children, or WIC, continue receiving the food and health support during the COVID-19 pandemic. USDA is providing the extension of the waivers throughout the national public health emergency. USDA’s Food and Nutrition Service has made maximum use of existing program flexibilities and the waiver authority provided by Congress to make it as easy as possible for children and families to participate in WIC, and all of the department’s nutrition assistance programs, during the COVID-19 health emergency. The WIC waivers being extended allow for participants to be approved for WIC without being physically present in a local office, remote issuance of benefits to any participant, flexibility in food package requirements, including dairy, grains, vegetables, and infant foods; and additional options for pick-up of food packages. ************************************************************************************ USDA Seeks Comments on Pasture, Rangeland, Forage Rainfall Index Insurance Program The Department of Agriculture seeks public comments on recommended improvements to the Pasture, Rangeland, Forage Rainfall Index Crop Insurance Program by November 5, 2020. USDA’s Risk Management Agency contracted for an independent evaluation of the program to determine its effectiveness as a risk management tool for livestock producers. RMA Administrator Martin Barbre says, “We want to be sure that the recommendations RMA implements are good for the industry and good for livestock producers.” In addition to the PRF program, the recommendations could be applied to other Rainfall Index programs such as beekeeping and Annual Forage. RMA will review all comments and determine what recommendations should be implemented for the 2022 crop year. The independent evaluation includes several recommendations, including adjusting the County Base Value productivity range, better targeting of indemnities, and focusing on viable forage production areas. Other recommendations include focusing on coverage on risk-reducing intervals and taking an alternative approach to reducing frequent shallow losses. ************************************************************************************ USDA Partners with Midwest Community Colleges to Teach Agricultural Conservation The Department of Agriculture is partnering with nine Midwest community colleges to support hands-on student learning about conservation and to foster conservation-minded farmers and ranchers. On Monday, Community College Alliance for Agriculture Advancement representatives and USDA’s Natural Resources Conservation Service signed a memorandum of understanding. Through the memo, they agree to enhance and accelerate training and adoption of technologies and best practices for improved agricultural productivity and natural resources stewardship. The agreement aims to reach not only agriculture students but also the broader community, through events such as field days. NRCS and the member institutions are developing local plans to address regional and statewide challenges and to support student internships and other training opportunities. All member institutions have college farms where they can implement conservation practices to educate and inform students and producers. Community colleges in the program include institutions in Illinois, Indiana, Iowa, Minnesota, Nebraska, North Dakota and Ohio. More information about the partnership is available at nrcs.usda.gov. ************************************************************************************ Walmart Sets Goal of Becoming Regenerative Company Walmart just announced the company is doubling down on addressing the growing climate crisis by targeting zero emissions across the company's global operations by 2040. Walmart and the Walmart Foundation are also committing to help protect, manage, or restore at least 50 million acres of land and one million square miles of ocean by 2030 to help combat the cascading loss of nature threatening the planet. Walmart CEO Doug McMillon says, "The commitments we're making today not only aim to decarbonize Walmart's global operations, they also put us on the path to becoming a regenerative company." Walmart seeks to harvest enough wind, solar, and other renewable energy sources to power its facilities with 100 percent renewable energy by 2035. The company also seeks electrifying and zeroing out emissions from all of its vehicles, including long-haul trucks, by 2040. Additionally, Walmart plans to transition to low-impact refrigerants for cooling and electrified equipment for heating in its stores, clubs, and data and distribution centers by 2040.
| Rural Advocate News | Tuesday September 22, 2020 |
Washington Insider: Tensions With China Intensify China's war rhetoric is pushing Taiwan to boost its U.S. economic ties. A Bloomberg report reflects the emergence of Taiwan once again as the center of dangerous military tensions. Bloomberg says it is “hard to find a world leader who's had a better 2020 than Taiwan President Tsai Ing-wen” on the basis of her recent landslide re-election win and her management of “one of the world's best responses to the COVID-19 pandemic.” She is also credited with overseeing an economic recovery that has boosted Taiwan's stock exchange to record heights. The central bank last week revised its 2020 growth target up to 1.6%, making it an outlier among global peers as most major economies shrink. Still, she has a major problem: The Communist Party is threatening her life, with its Global Times newspaper saying over the weekend she would be “wiped out” in a war if she violated China's anti-secession law. The warning in a tweet Saturday described her dinner with Keith Krach, the most senior U.S. State Department official to visit Taiwan since 1979, as “playing with fire.” People's Liberation Army aircraft last week repeatedly breached the median line between Taiwan and China and the PLA Air Force released a video showing H-6 bombers making a simulated strike on what looked like a U.S. military base on the nearby island of Guam. Bloomberg notes that while China's military dwarfs that of Taiwan, an amphibious invasion across the 100-mile-wide strait separating the two “could easily backfire on the world's number-two economy.” Not only do “many observers” think the U.S. would come to Taiwan's aid if China were to launch an attack but Tsai's government is actively taking steps to increase economic ties between the unofficial allies to provide more incentives for American policy makers to intervene. “If we lessen our economic reliance on China, it won't be able to politically blackmail us,” Kolas Yotaka, presidential office spokeswoman, told Bloomberg. “By establishing closer economic ties with other countries, we'll be able to uphold regional peace through shared prosperity.” Right now, he said, the economic relationship is heavily tilted toward Beijing. Exports to China accounted for 42.3% of Taiwan's total in the first half of this year with only 1.5% going to the U.S. during the same period. Taiwanese investment in China in the first eight months of this year was up 50% year on year, totaling $3.9 billion, according to Taiwan's economic ministry. Tsai's government, however, has sought to reverse those trends in particular by encouraging companies to bring their tech supply chains out of China to Taiwan and places like Southeast Asia. In late August, she also lifted a ban on certain U.S. pork and beef products—the major obstacle to a trade agreement with the U.S.. “We must accelerate our linkage to economies around the world, in particular strengthening our ties with our most steadfast partner,” Tsai said at the time. Through July, American government data show Taiwan as its ninth-largest trade partner, up from eleventh last year. The Krach visit marked another milestone in that effort. Tsai hosted a dinner Friday night for him that also included Morris Chang, founder of Taiwan Semiconductor Manufacturing Co., the main chipmaker for Apple Inc. The presence of Chang, whose company recently announced it would build a $12 billion facility in Arizona, highlighted the importance of Taiwan's cutting-edge semiconductor industry, which the U.S. is looking to wall off from Chinese companies such as Huawei Technologies Co. On Sunday, Taiwan's economic minister, Wang Mei-hua, announced she had met with Krach's delegation for talks to prepare for a formal economic dialogue. Any serious discussions would be helmed by U.S. Trade Representative Robert Lighthizer, who negotiated the phase-one deal with China signed earlier this year, Bloomberg said. While it's unclear if Taiwan is on the USTR's list of priorities, any agreement would go a long way toward bringing Taiwan out of its diplomatic isolation, according to Tiffany Ma, senior director at Bower Group Asia. A bilateral trade agreement “would further benefit Taiwan's security by giving momentum — and political cover — for other countries to pursue similar arrangements with Taiwan,” she said. The U.S. formally cut ties with Taiwan's government in 1979 in order to establish relations with Beijing. Four decades later, however, U.S. ties with China are getting worse by the day while trade and official exchanges with Taiwan are on the rise. Despite the military saber-rattling over the weekend, China doesn't appear ready to give up on economic engagement with Taiwan. Wang Yang, the Communist Party's No. 4 official, on Saturday pledged to “further improve policy measures and arrangements” that benefit Taiwanese people. “We need to have a longer-term vision,” said Liu Guoshen, director of the Taiwan Research Institute at Xiamen University, which sits across the strait. Even so, China's recent military maneuvers near Taiwan signal that it is watching carefully and possibly willing to escalate. Not only has the Communist Party never ruled Taiwan but polls show the vast majority of Taiwanese citizens don't want it to. Now, President Xi Jinping has vowed to take it by force if necessary. “Beijing fears a slippery slope,” said Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies. “It worries that the U.S. has abandoned its one-China policy and won't respect China's red lines.” So, we will see. These are extremely uncertain times for the U.S. and for much of the globe — trends producers should watch closely as the debates and fights intensify, Washington Insider believes.
| Rural Advocate News | Tuesday September 22, 2020 |
Commerce Rescinds Review of Antidumping Duties On Indonesian Biodiesel The Commerce Department is rescinding its administrative review of antidumping duties on Indonesian biodiesel for the period of review April 1, 2019-March 31, 2020 at the request of the National Biodiesel Fair Trade Coalition. The Commerce Department had received a petition from the group for an administrative review on five Indonesian biodiesel producers and/or exporters, but on September 1, the group withdrew its request
| Rural Advocate News | Tuesday September 22, 2020 |
CFAP 2 Signup Starts With USDA Funding in Limbo Signup for the Coronavirus Food Assistance Program 2 (CFAP 2) started Monday and runs through December 11. USDA expects that when payment limits are taken into account, payouts under the $14 billion program should total $13.2 billion. USDA is expected to release a payment calculator soon that would help producers figure their benefits under the program. But the program enrollment began as Congress continues to work on a continuing resolution (CR) that would fund the government through December 11. Included in an agreement reached between Republicans and Democrats in the House Friday was a replenishment of the borrowing authority for the Commodity Credit Corporation (CCC). In exchange for supporting the CCC replenishment, there was agreement to continue a nutrition program created during the pandemic to provide school lunches to children. However, as of Monday, the CCC and school lunch provisions were stricken from the bill.
| Rural Advocate News | Tuesday September 22, 2020 |
Tuesday Watch List Markets Tuesday is the first official day of autumn, but grain prices may be in no mood to celebrate after Monday's broad-based selling. A report on U.S. existing home sales is due out at 9 a.m. CDT, followed by USDA's monthly cold storage report at 2 p.m. CDT. Weather forecasts for the U.S. and South America will be looked at as will any trade news that develops. Weather Central crop areas will be dry Tuesday, offering favorable conditions for row crop harvest and winter wheat planting. Tropical Storm Beta will bring moderate to heavy rain into portions of the Delta, southeastern Oklahoma and eastern Texas.
| Rural Advocate News | Monday September 21, 2020 |
USDA Announced Second Round of CFAP Details President Trump and Ag Secretary Sonny Perdue announced an additional $14 billion in aid for agricultural producers who continue to face market disruption and costs associated with COVID-19. The producer signup for the Coronavirus Food Assistance Program (CFAP 2) at the USDA Farm Service Agency’s county offices starts on September 21 and runs through December 11. In a news release, the Ag Secretary says, “America’s agriculture communities are resilient, but still face many challenges due to the COVID-19 pandemic.” Perdue notes that the agency “listened to feedback” from farmers, ranchers, and agricultural organizations about the impact of the pandemic on the nation’s farms and ranches, and they developed a program to better meet the needs of those impacted. USDA will use the funds being made available from the Commodity Credit Corporation Charter Act and the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support row crops, livestock, specialty crops, dairy, aquaculture, and many additional commodities. The Hagstrom Report says Senate Ag Appropriations Subcommittee Chair John Hoeven of North Dakota said he’d talked about the program this week with Perdue and Budget Director Russ Vought, who had to approve the assistance. “Our producers don’t quit,” Hoeven says, “and Congress must match their resolve with measures to help them through a difficult time.” *****************************************t***************************************************** Agriculture Groups React to CFAP 2 Ag groups reacted positively to the USDA’s announcement that additional support is coming for farmers and ranchers through the Coronavirus Food Assistance Program. National Cattlemen’s Beef Association VP of Government Affairs Ethan Lane says, “We’re pleased to see that USDA is using unspent funds in the Coronavirus Food Assistance Program to provide further relief to cattle producers during COVID-19. Many producers are still reeling from disruptions brought on by the pandemic.” Assistance during the first round of CFAP only covered losses through April 15. “We don’t know when the pandemic will end and are still feeling the effects of trade imbalances and severe weather,” says Farm Bureau President Zippy Duvall. “This lifeline will keep farmers and ranchers afloat as they continue to keep American pantries stocked with food.” National Farmers Union is grateful for the assistance but is concerned about the distribution method. “The first round of funding was greatly appreciated, but not without its flaws,” says NFU President Rob Larew. “Not only did it favor large farmers over smaller ones, but it also sent millions of dollars to foreign-owned operations while excluding some farmers entirely.” The NFU is asking USDA to rectify those issues and make sure payments go to those who need it most. ********************************************************************************************** EPA Finalizes Interim Rules on Atrazine Use by Farmers Atrazine is a widely used herbicide that farmers can apply before and after planting to control broadleaf and grassy weeds. It’s used primarily on corn, sorghum, and sugarcane, and to a lesser extent on residential lawns and golf courses. The Environmental Protection Agency released the Interim Registration Review Decision for atrazine, as well as propazine and simazine. With the rule, EPA finalized mitigation measures to protect human health, mitigate potential ecological risks, and provided farmers with the valuable tools they rely on to control weeds in their crops. “Today’s decision is another example of the administration taking action to support America’s farmers, one of the strongest allies in our mission to protect public health and the environment,” said EPA Administrator Andrew Wheeler during a roundtable discussion in Missouri on Friday. “The benefits of atrazine in agriculture are high, so these new protections give our nation’s farmers more clarity and certainty concerning proper use.” EPA did a thorough review of the best available science and carefully considered scientific peer review and public comments to determine which mitigation measures are warranted for the three herbicides to properly address human health and ecological risk. ********************************************************************************************** USDA’S Censky Returning to ASA After serving as the U.S. Deputy Secretary of Agriculture since 2017, the man who led the American Soybean Association for 21 years is returning to familiar territory. Stephen Censky is leaving USDA to return to the helm of the grower group as Chief Executive Officer. Censky will officially join ASA on November 9 and resumes his post after the departure of Ryan Findlay, who’s credited with helping the organization restructure internally and establish an independent government affairs office in Washington, D.C. Ag Secretary Sonny Perdue says, “There is no doubt that I personally, as well as the whole USDA family, will miss Steve’s experience, preparedness, and steady leadership. During his tenure, we accomplished a great deal in a short time, even in the face of serious challenges in American agriculture.” He adds that Censky’s roots are in agriculture and he’s one of the best and most professional public servants America has. Censky says, “It’s a privilege to return to ASA and represent our nation’s soybean growers. ASA is in many ways home, and I’m excited about working with both new and familiar faces in St. Louis and D.C. and building on the great changes made since I was last there.” ********************************************************************************************** Negative Reaction to Trump’s Refinery Bailout Plan Lawmakers from both sides of the political fence spoke out against the idea of using USDA funds to bail out refiners that are denied exemptions from the nation’s biofuel blending laws. Reuters issued a report saying the administration is considering up to $300 million in financial relief to refiners who are denied waivers from the Renewable Fuels Standard, which requires them to blend biofuels into their fuel or to purchase credits for the 2019 compliance year. Five anonymous sources said the funds could come from within the USDA’s Commodity Credit Corporation. The idea isn’t sitting well with lawmakers because those funds are supposed to assist farmers and not the oil industry. Ranking Senate Ag Committee member Debbie Stabenow called the idea “outrageous” during comments on the Senate floor. Senator Chuck Grassley of Iowa, who sits on the other side of the political fence from Stabenow, says the USDA funds were meant for struggling farmers. “It’s not a surprise that Big Oil is looking elsewhere for government handouts,” a Grassley spokesman says. Refinery groups say the administration should instead focus on making the cost of the Renewable Fuels Standard less burdensome on refiners. ********************************************************************************************** Grassley, Ernst Ask for Additional USDA Support for Iowa Farmers Senators Chuck Grassley and Joni Ernst, both members of the Senate Agriculture Committee, are asking the USDA to take action to provide Iowa farmers with additional support and relief. Iowa farmers are continuing to rebuild their livelihoods after a derecho storm system and drought impacted different parts of the state. Grassley and Ernst are asking Secretary Perdue to provide further assistance to farmers and producers in the aftermath of the derecho, including a deadline extension for crop insurance premium due dates. They’re also asking for a streamlined application process to replace grain bins damaged from the storm and ensuring future USDA Coronavirus Food Assistance Program payments are issued for base acres, not harvested acres. While visiting Iowa, Secretary Perdue announced his approval of Governor Kim Reynolds’ request for a Secretarial Disaster Designation for 18 counties impacted by the storm, which allowed producers to access USDA disaster programs and Farm Service Agency loans. The senators also sent a letter asking the Secretary of Commerce to lift Section 232 tariffs on steel that add millions to the costs for Iowa’s recovery, especially for farmers needing to replace machine sheds and grain bins.
| Rural Advocate News | Monday September 21, 2020 |
Washington Insider: Regarding the US-China Trade War While much of the debate in Washington has quickly turned to the Supreme Court and efforts to replace Justice Ruth Bader Ginsberg, Bloomberg has raised a different concern — it says that after four years of “relentless” effort by the President to push back against China, questions remain about that policy's effectiveness. It calls efforts to ban new downloads of WeChat — China's ubiquitous messaging and payments app — and the wildly popular video-sharing app TikTok — as merely diversions. The report goes further — it says that “the final scorecard is already in: On just about every metric that matters, China is ahead.” The article lists several details. It considers the trade balance and notes that the president “seems to regard that as “the most important measure of success” in its effort to get China to play by global trading rules. It says that metric “has grown almost 25% since the start of the administration's tariff war and cites Jim McCormick of NatWest Markets. Also, China is nowhere near on track to meet its target of increasing imports from the U.S. under the current partial deal the signal accomplishment of the administration's “tariff tit-for-tat.” Bloomberg then considers China's powerfully resurgent GDP, the result of its vastly more effective response to the pandemic that began there. China, McCormick notes, is the only country among 48 to have reported a second-quarter GDP number that was higher than at the end of 2019. In the U.S., the worst country when it comes to the coronavirus (as measured by death and infections), the economy shrank 9.5% in the second quarter, a drop that equals an annualized pace of 32.9% — its sharpest downturn since at least the 1940s, Bloomberg says. And now the Chinese currency is surging, the report says. It climbed for the eighth week in a row, its longest run of gains since February 2018. Global bond funds are pouring into the country — ones that still offers yields. Meanwhile, the dollar is slumping. Behind these headline numbers Bloomberg also sees “deeper industrial trends, which again work in China's favor, helping it pick up global market share in the aftermath of COVID-19 lockdowns.” Increasingly, China is supplying the kind of sophisticated machinery that German manufacturers once dominated, like high-end tunnel borers and hydraulic valves and pumps used in wind turbines. “It's only a matter of time until Chinese firms are No. 1,” Ulrich Ackermann, managing director for foreign trade at Germany's VDMA Mechanical Engineering Industry Association told Bloomberg. So, Bloomberg asserts that the administration's assaults on WeChat and TikTok are “distractions” and argues that there are “better ways to mitigate the national security risk Chinese companies may pose” by gaining access to U.S. personal data. In any case, lashing out at Chinese tech companies will only slow, not derail, Beijing's efforts to dominate the 21st century economy, the report says. As an example, it describes the race to develop batteries, a key to the future of transport, defense and other industries. By 2025, China will have battery facilities with maximum production capacity of about 1.1 terawatt-hours' worth of cells annually, almost double the rest of the world combined. The White House response? So far, only inertia, Cathy Zoi, chief executive officer of charging-network operator EVgo who was an assistant secretary at the U.S. Department of Energy under President Barack Obama, says. The report argues that the “net result” of administration efforts to decouple the U.S. and Chinese economies is to push China even further toward self-sufficiency, a strategy set to be enshrined in China's new five-year plan at a meeting of the Chinese Communist Party Central Committee next month. This new economic direction is described by the official phrase “dual circulation,” an ambiguous reference to the outward and inward drivers of the Chinese economy. The report argues that China “looks set to make a drive to reduce dependence on imports, particularly of high-end manufacturing equipment and inputs,” writes economist Alicia Garcia-Herrero. “Dual circulation,” she said, is import-substitution by another name. The report also argues that the Democratic political contender's ideas, no less than the administration's, would grapple with a China set on global domination of 21st century industries by deploying old-fashioned mercantilism, among other retrograde trade policies. It asks, “how could it do better?” Robert Zoellick, the former U.S. trade representative and World Bank head has this advice for the former U.S. vice president, should he win in November: “Foreign policy should start at home,” focusing on domestic issues like public health, immigration and inclusive economic growth will both signal U.S. leadership and appeal to allies, Zoellick wrote in Foreign Affairs. He sees that as a “new base of cooperation,” and thinks that “the U.S. and its partners will be better positioned to address two overarching challenges: the future of free societies and competition with China.” So, we will see. While there are wide disagreements regarding many of the current indicators, certainly the continuing competition with China will be fierce and likely will persist. How well Bloomberg has captured the current “state of play” as well as the future prospects remains to be seen, but certainly should be watched closely by producers as these trends intensify, Washington Insider believes.
| Rural Advocate News | Monday September 21, 2020 |
USDA Approves Contracts Under Third Round Of Food Box Effort USDA approved another $1 billion in food box contracts for a third round of deliveries through the end of October. The department says it has taken steps to fix shortfalls in the relief program that drew criticism from lawmakers and some food banks in recent months. The third round of contracts are under the Farmers to Families Food Box Program. USDA said the combination boxes of fresh produce, dairy products, fluid milk and meat products “will be distributed to every county in America.”
| Rural Advocate News | Monday September 21, 2020 |
NPPC Focusing On Next Farmer Aid, Help For Euthanized Livestock The National Pork Producers Council (NPPC) is focusing on the coming second round of Coronavirus Food Assistance Program (CFAP) help (see previous item) and are urging Congress to provide USDA the authority to use the Commodity Credit Corporation (CCC) to provide financial help to livestock producers have had to euthanize livestock due to the COVID-19 pandemic. The group wants no limits on the CFAP 2 effort, but USDA will still impose pay caps on the funds. The group also wants more funding to boost the number of U.S. inspectors at U.S. borders, citing the appearance of African swine fever (ASF) in Germany as a key reason more inspectors are needed as they are the “first line of defense,” officials with the group told reporters in a call Thursday. The group is working to try and get the inspector funding in the coming continuing resolution to keep the government funded past September 30, but officials were uncertain whether such funding could be added to the plan.
| Rural Advocate News | Monday September 21, 2020 |
Monday Watch List Markets Back from another weekend, traders will brush up on the latest weather forecasts for the U.S. and South America and watch for any new export sales. USDA's weekly grain inspections report is out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. CDT. Row crop harvest progress and winter wheat planting progress will be the report's highlights at 3 p.m. Weather Dry conditions will dominate the primary crop areas Monday, offering favorable harvest and winter wheat planting conditions. Rain will focus on the lower Delta and Gulf Coastal Bend due to Tropical Storm Beta with flooding and storm surge threat. The Australia 30-day Southern Oscillation Index (SOI) value remains in weak La Nina category at positive 9.01.
| Rural Advocate News | Friday September 18, 2020 |
Oil Refinery Help Could Come From USDA The Trump Administration is considering the possibility of at least $300 million in cash aid for U.S. oil refiners, who’ve been denied exemptions under the Renewable Fuels Standard. Two sources told Reuters that while the administration hasn’t yet ruled on 2019 waiver requests, officials have estimated the amount of money it would provide in aid based on the number of facilities that applied for the exemptions but might now be ineligible because of a recent court ruling. The Environmental Protection Agency, which has the final say on RFS waivers, didn’t immediately comment on the announcement. Several sources say that financial relief could come from funds within the USDA’s Commodity Credit Corporation but didn’t know exactly when the aid would be distributed. A spokesman for the American Fuel and Petrochemical Manufacturers’ Association says the industry doesn’t support the idea of aid. “If the administration truly wants to make things right with refiners, they need to prioritize making the RFS less expensive so it’s not a threat to good manufacturing jobs,” the spokesman adds. The administration had recently quadrupled exemptions for refiners, angering biofuel producers and farmers who say the waivers dent demand for their products. *****************************************t***************************************************** NCBA Pleased with Attempts to Modernize Endangered Species Act The National Cattlemen’s Beef Association and the Public Lands Council are pleased with the introduction of legislation attempting to modernize the Endangered Species Act. It’s the first attempt to update the act in almost 30 years. Senator John Barrasso of Wyoming, Chair of the Committee on Environment and Public Works, introduced the legislation. He says the Endangered Species Act Amendments of 2020 will improve the existing law by strengthening state and local partnerships, as well as incentivize voluntary conservation efforts undertaken by ranchers and other landowners. It will also defend the ESA’s delisting process for animals that have successfully recovered and no longer need protection. Through these changes and with targeted increases for specific areas of the ESA, the bill will improve species conservation and address key failures in the Act. “The legislation is about improving an outdated law so that it meets current needs,” says NCBA President Marty Smith. “It’s about helping every American cattle producer that has lost a calf to a federally-protected bear or wolf, and for landowners who face stringent regulation that doesn’t meet the habitat needs on the ground.” ********************************************************************************************** Iowa Senators Want Investigation into Post-Derecho Price Gouging Senate Finance Chair Chuck Grassley and fellow Iowa Senator Joni Ernst are asking the Justice Department and the Federal Trade Commission to investigate price gouging in the state. The Hagstrom Report says the senators accuse some companies of overcharging for the equipment and materials Iowans for them to make repairs after the derecho storm system. Grassley and Ernst co-authored letters to both agencies that say, “We have heard concerns about possible price gouging of necessary goods and services, as well as scams targeting victims of the derecho.” They say Iowans, especially farmers, have told them they face prohibitive costs in acquiring the materials and equipment they need to rebuild their homes and livelihoods. “The costs for farmers to remove, repair, or replace grain bins alone will total hundreds of millions of dollars,” the letter says. “We will not let scammers and price gougers use this tragedy to raise prices to sky-high levels and thwart Iowa’s population from repairing and rebuilding their homes, businesses, and communities.” Grassley and Ernst tell both agencies that it’s imperative that they investigate allegations of wrongdoing, fraud, and price gouging related to the Iowa derecho, and aggressively pursue the individuals who engage in these illegal activities. ********************************************************************************************** NCBA Lists Available Disaster Relief Help for Cattle Producers The National Cattlemen’s Beef Association put together a list of federal programs that are available to help cattle producers across the country who are being impacted by wildfires and hurricanes. The association also put together a list of ways those who aren’t affected by the challenges can help those producers directly hit by natural disasters. “The wildfire and hurricanes that have plagued the country these last few weeks are significant disasters that are hurting cattle producers in multiple ways,” says NCBA CEO Colin Woodall. “From flooded operations, burning rangeland, smoke inhalation, and many more challenges, this is a trying time for producers. Everyone needs to take a close look at the resources available to help give relief to producers, their families, and their animals.” Woodall adds that their biggest concern is for the well-being of everyone in the path of these disasters. “Know your evacuation routes and exercise extreme caution when dealing with these deadly forces of nature.” Ranchers and farmers are urged to utilize the Wildfires and Hurricanes Indemnity Program (WHIP) if it applies to them. NCBA has set up a web page that aggregates all disaster relief information in one place, which also includes donation information for those who wish to help. ********************************************************************************************** Roberts Says Farm Bill Future Depends on CCC Senate Ag Committee Chair Pat Roberts took part in a discussion on the Senate floor this week about the replenishment of the Commodity Credit Corporation. The Kansas Republican points out that failure to do so would not only hurt already-struggling farmers, ranchers, and growers, it would jeopardize the implementation of the 2018 Farm Bill programs. Senators from North and South Dakota, Iowa, Nebraska, Arkansas, and Mississippi took part in the discussion. “The 2018 Farm Bill provides essential programs to producers that allow them to mitigate some of the risks that are outside of their control,” Roberts says. “Many of the programs are implemented through the authority and the annual funding Congress provided to the CCC.” Roberts stresses to his colleagues that now is not the time for political gamesmanship. “If Congress doesn’t replenish the CCC, it could significantly harm or even halt these important programs,” Roberts adds. “Farmers, ranchers, and others in farm country are counting on us to do our job.” The senator added that even during COVID-19, U.S. farmers and ranchers continue to hold up their end of the bargain by producing crops for the world’s safest and most affordable food supply. ************************************************************************************ Vegan Food Company Sues Oklahoma Over Product Label Law Oklahoma has a new law governing labeling for some vegan products. A vegan company doesn’t like that and has filed a lawsuit in the U.S. District Court of western Oklahoma. The suit was filed by Upton’s Naturals Company, an Illinois-based business that sells plant-based foods, and the Plant-Based Foods Association, a group with 170 members. The Tulsa World says the suit seeks a preliminary injunction preventing House Bill 3806 from taking effect, a permanent injunction, as well as attorney’s fees, costs, and expenses. The suit specifically alleges that Oklahoma lawmakers passed the measure to protect the state’s meat-industry groups from the competition brought by plant-based food makers. The law was supported by the Oklahoma Cattlemen’s Association. It does permit companies to use words like meat, beef, and bacon on their labels. However, they also need to include a disclaimer that the products were derived from plant-based sources “in type that’s the same size and prominence to the name of the product.” Plaintiffs say prohibiting the use of meat-based terms without the disclaimer creates confusion among consumers, and that the law would “fail any level of First Amendment scrutiny.”
| Rural Advocate News | Friday September 18, 2020 |
Washington Insider: Fed Warning as Relief Package Fight Heats Up The Hill is reporting this week that Fed Chair Jerome Powell warned that a “lack of further fiscal support from Congress could scar and damage the U.S. economy.” During a Wednesday press conference, Powell expressed optimism that Democrats and Republicans “would find a path forward on another coronavirus relief bill despite a weeks-long stalemate between negotiators.” “There does seem to be an appetite on the part of all the relevant players to doing something. The question is how much and when,” Powell said. But he added that the Fed's improving outlook for the U.S. economy depends on lawmakers and the White House bridging deep divides over the scale and scope of another package. “If there's no follow-up on that, if there isn't additional support and there isn't a job for some of those people who are from industries where it's going to be very hard to find new work,” Powell said, “that will start to show up in economic activity. It'll also show up in things like evictions and foreclosures and things that will scar and damage the economy.” Powell's latest plea for more fiscal support came after the Fed announced in its last policy meeting before the November election that it would hold rates steady near zero percent. Officials do not expect the bank to hike rates again until 2022 at the absolute earliest, but 13 of the 17 Fed board members and reserve bank presidents do not expect a rate hike through the end of 2023, according to projections released Wednesday. Fed officials also upgraded their forecasts for the economy after the unemployment rate declined to a “surprisingly strong 8.4% in August.” They now expect the unemployment rate to decline to a median of 7.6% by the end of the year, well below the 9.3% median projected in June. Powell cautioned that those projections were based on the assumption that Congress would approve another fiscal aid package to extend enhanced unemployment benefits that expired on July 31, boost struggling state and local governments with further aid, and provide financial support to avoid evictions. That bet may not be safe given the persistent impasse since early August between Democrats and Republicans over another fiscal package, The Hill said. Sen. John Thune, R-S.D., a member of GOP leadership, said Thursday that a deal in the range of $1.5 trillion — a middle ground between current Democratic and Republican offers — would likely lead to “heartburn” among Republicans on Capitol Hill. “If the number gets too high, anything that got passed in the Senate will be passed mostly with Democrat votes and a handful of Republicans,” he told reporters. “So it's going to have to stay in a sort of realistic range if we want to maximize, optimize the number of Republican senators that will vote for it.” Thune's comments came after President Trump encouraged Republicans in a Wednesday tweet to aim for a larger package, a request quickly touted by Speaker Nancy Pelosi D-Calif., and Senate Minority Leader Charles Schumer, D-N.Y. “We are encouraged that after months of the Senate Republicans insisting on shortchanging the massive needs of the American people, President Trump is now calling on Republicans to 'go for the much higher numbers' in the next coronavirus relief package,” Pelosi and Schumer said in a joint statement after Trump's tweet. The deadlock has persisted despite signs that the recovery from the coronavirus recession is slowing. Roughly 11.5 million Americans have not yet found work after losing their jobs earlier this year. The number of new jobs added by the U.S. economy has slowed for two consecutive months. A crucial step to stem those declines, Powell said, is for Congress and the White House to reach an agreement on COVID-19 relief, though he did not specify a preferred price tag for such a deal or what provisions it should include. “I think the real question is when and how much, what will be the contents,” Powell said of a deal to speed up the recovery. “And, you know, no one has any certainty around that. But broadly speaking, if we don't get that, then there would certainly be downside risks,” he added. Meanwhile, the administration pulled $700 million from the CDC to fund the Operation Warp Speed effort to develop drugs and vaccines, according to people familiar with the matter. The money came from funds Congress appropriated to the CDC in stimulus legislation earlier this year, according to staff members who asked not to be named because the matter isn't public. So, we will see. The fight over the next virus subsidy is real, bitter and certainly will be difficult to resolve in spite of administration intercession — a battle producers should watch as it intensifies, Washington Insider believes.
| Rural Advocate News | Friday September 18, 2020 |
CFAP 2 Details Likely To Come Soon The Office of Management and Budget (OMB) finished its review of the final plan from USDA for another Coronavirus Food Assistance Program (CFAP) effort Wednesday (September 16). And President Donald Trump announced the aid, totaling around $13 billion, in Wisconsin on Thursday night. That should mean details of the plan will come Friday from USDA. The CFAP 2 effort is expected to focus on addressing impacts to the sector that have been seen since April 15, the date that the initial CFAP effort targeted. Payouts under the initial CFAP effort have totaled just under $10 billion, shy of the $16 billion the agency targeted for the effort and signup for the initial effort closed September 11.
| Rural Advocate News | Friday September 18, 2020 |
China State Planner Keeps Low-Tariff TRQs on Grains, Cotton Steady The tariff rate quotas (TRQs) for wheat, rice, corn and cotton for 2021 will be at the same levels as were in place for 2020 — 7.2 million metric tons (mmt) for corn, 9.636 mmt for wheat, 5.32 mmt for rice and 894,000 metric tons for cotton. However, China has taken actions publicly for cotton to bring in more cotton than their announced 2020 TRQ levels, announcing a 400,000 metric ton import quota for processing. USDA signaled after the release of its WASDE report Friday that their forecast of corn imports by China at 7 mmt reflected the announced TRQ level for corn even though export commitments for corn were at more than the TRQ level of 7.2 mmt. The TRQs announced by China are on a calendar year while the WASDE forecasts are on a marketing-year basis. But USDA in February, after the Phase One agreement was announced, indicated they would track export sales of commodities covered by the agreement. But the comment from the Office of the Chief Economist indicating that there had not been a policy announcement from China relative to increasing the TRQ for corn indicates the agency does not appear to be sticking with their February stance that export sales would be a key factor relative to USDA's forecasts of China's purchases. Reuters reported that while the TRQs would not be changed, they quoted a source as indicating that there could be a “special” permit for extra imports, a situation which would match what China has done on cotton.
| Rural Advocate News | Friday September 18, 2020 |
Friday Watch List Markets Friday's only official report is the University of Michigan's consumer sentiment index, set for 9 a.m. CDT. Exports sales remain closely watched as do the latest weather forecasts for the U.S. and South America. Federal Reserve officials continue to share their views in public talks after the Fed said Wednesday it was committed to keeping interest rates near zero. Weather Another day of dry and mild conditions is in store for all major crop areas Friday. This pattern remains favorable for row crop ripening and harvest along with winter wheat planting. Tropical Depression Twenty-Two in the western Gulf of Mexico will be monitored for possible impact on the south Texas coast. Meanwhile, wildfire danger and smoke issues remain in effect throughout the West
| Rural Advocate News | Thursday September 17, 2020 |
USDA Streamlining Whole Farm Revenue Protection The Department of Agriculture Wednesday announced changes to streamline the Whole-Farm Revenue Protection program. The modifications, USDA says, will decrease paperwork and recordkeeping burdens for direct marketers beginning with the 2021 crop year. Risk Management Agency Administrator Martin Barbre says, “These changes will allow more direct marketers who previously could not meet reporting requirements a way to participate in the Whole-Farm program.” RMA held several stakeholder meetings with agents, growers and grower groups to solicit feedback on ways to increase the effectiveness of the program, as required by the 2018 farm bill. Stakeholders recommended RMA decrease the requirements for reporting yield and revenues for each commodity, which is especially difficult for direct marketers who may sell several commodities through a roadside stand. The newly implemented modifications allow growers to report two or more direct-marketed commodities as a combined single commodity code with a combined expected revenue for all commodities. Additionally, the combined direct-marketed commodities will count as two commodities in calculating the diversification premium discount. ************************************************************************************ House Expected to Pass Peterson Led SRE Provisions The House Committee on Energy and Commerce this week released legislation containing provisions to provide transparency into the Environmental Protection Agency’s granting of small refinery exemptions. The provisions stem from legislation by House Agriculture Committee Chairman Collin Peterson, a Minnesota Democrat. The Clean Economy Jobs and Innovation Act would set an annual deadline for refiners to request exemptions from the Renewable Fuel Standard and require EPA to publicly release the name of refiners requesting a waiver, the number of gallons requested to be waived and the number of gallons of biofuel that will not be blended as a result of the waiver. House Speaker Nancy Pelosi told the National Farmers Union this week that she expects the House to pass the legislation, possibly next week. The National Corn Growers Association says providing more transparency to EPA’s waiver process will give farmers, biofuel producers and the public a clearer understanding of EPA’s justification for approving these harmful waivers. ************************************************************************************ AFBF Supports Emergency Wildfire and Public Safety Act The American Farm Bureau Federation wants Congress to give federal land management agencies additional tools and resources to prevent and recover from catastrophic wildfires. AFBF and 13 state Farm Bureaus sent a letter Wednesday to Senate leadership supporting the Emergency Wildfire and Public Safety Act of 2020. AFBF says the bipartisan legislation will expedite forest management, accelerate post-fire restoration and reforestation, and remove dead and dangerous wood from national forests. AFBF says the importance of the legislation is demonstrated by the six million acres of forest land currently burning in the western United States. Since the beginning of 2020, in California alone, wildfires have burned more than three million acres and destroyed 4,200 structures. The letter states, “Backlogs in adequate management coupled with drier, hotter conditions, have resulted in unhealthy, overly dense forests.” While the legislation will help mitigate future fires, Farm Bureau says it will not address the immediate needs of farmers and ranchers suffering devastating losses from fires burning right now. ************************************************************************************ China, EU Sign Agreement Protecting Geographic Indicators The European Union and China this week signed a bilateral agreement to protect Geographical Indications. The agreement protects 100 EU geographical indicators, along with 100 Chinese indicators. The agreement, first concluded in November 2019, should bring reciprocal trade benefits as well as introducing consumers to guaranteed, quality products on both sides, according to the EU. An EU agriculture official says, "European Geographical Indications products are renowned for their quality and diversity," adding, "it is important to protect them." Following the signature of the agreement and the European Parliament's consent, it will officially be adopted. The agreement is expected to enter into force at the beginning of 2021. Within four years after its entry into force, the scope of the agreement will expand to cover additional 175 Geographic Indicator names from both sides. EU-China cooperation on the matter started in 2006 and resulted in the protection of ten Geographical Indication names on both sides in 2012. ************************************************************************************ Farm Futures Releases 2021 Planting Intentions Survey An August 2020 survey conducted by Farm Futures found farmers across the country are eager to plant more soybeans in 2021. Survey respondents reported a slight decline in corn acreage in favor of soybeans for next year's crop as a recent uptick in soybean demand sparked a rally. Farm Futures respondents indicated planting 0.3 percent fewer corn acres in 2021/22 after demand destruction eroded 440 million bushels from the 2019/20 demand pipeline. While 2020/21 corn planting progress was largely underway when the pandemic caused corn demand to evaporate, farmers now have over six months of pandemic experience under their belts. The recent run-up in soybean prices has made U.S. soy acreage a hot prospect in the commodity markets. Farm Futures respondents projected planting nearly 4.1 million more acres of soybeans in 2021 compared to 2020, totaling 87.9 million acres. If realized, 2021 soybean acreage will be the third-highest planted soy acreage on record. ************************************************************************************ 2021 World Ag Expo Cancelled Organizers of the 2021 World Ag Expo announced the cancelation of the event earlier this week. Jerry Sinift, International Agri-Center CEO, says, "it has become evident that given health and safety restrictions from the State of California, holding a live, international event is not responsible in February.” Organizers say the decision follows months of research and evaluation of future trends and known constraints. The decision was finalized earlier than the initial November deadline to provide exhibitors, attendees and local businesses time to adjust their farm show plans. The cancellation of World Ag Expo comes as another negative effect of COVID-19 for the International Agri-Center, exhibitors, non-profit food vendors, attendees, area hotels, restaurants, and other associated businesses. The International Agri-Center is home to World Ag Expo in Tulare (Too-larry), California. An estimated annual average of 100,000 individuals from 65 countries attend World Ag Expo each year. The 2022 World Ag Expo is scheduled for February 8-10 at the International Agri-Center in Tulare, California.
| Rural Advocate News | Thursday September 17, 2020 |
Washington Insider: WTO Says Some US Tariffs are Illegal The New York Times and other news organizations are reporting this week that a World Trade Organization panel found Tuesday that the U.S. violated its rules by imposing tariffs on China in 2018. The Times said the finding drew an “angry response from the administration.” The WTO panel of trade experts sided with a complaint that China had filed, which argued that the administration's tariffs violated several global rules, “including a provision that requires all WTO members to offer equal tariff rates” among the body's trading partners. The Trump administration broke with that tradition. During its trade war with China, the U.S. imposed tariffs on more than $360 billion worth of Chinese products in an effort to force China to better protect foreign intellectual property — and to change other policies that the U.S. administration claimed put American workers at a disadvantage. The administration drew on an American legal provision — called Section 301 — to impose the tariffs, which allows the president to restrict “foreign commerce that unfairly burdens the United States.” The effect of the ruling remains unclear, the Times said. The United States and China signed a trade deal in January, but the bulk of the tariffs imposed by the U.S. administration remain in place covering more than half of China's exports to the United States. Robert Lighthizer, the United States Trade Representative, blasted the WTO for trying to prevent the United States from helping its own workers. “This panel report confirms what the Trump administration has been saying for four years: The WTO is completely inadequate to stop China's harmful technology practices,” Lighthizer said. “Although the panel did not dispute the extensive evidence submitted by the United States of intellectual property theft by China, its decision shows that the WTO provides no remedy for such misconduct.” “The United States must be allowed to defend itself against unfair trade practices and the Trump administration will not let China use the WTO to take advantage of American workers, businesses, farmers and ranchers,” he added. The United States has 60 days to respond to the decision. But the ruling may have little practical effect, since the United States has effectively crippled the WTO panel responsible for handling appeals of trade disputes by refusing to appoint new members to it, the Times said. If the United States chooses to fight the organization's latest decision, the case will end up in a kind of legal limbo, with no resolution in sight. The report noted that if the panel had enough members to function and its members upheld the ruling, the WTO could authorize China to retaliate if the U.S. did not change its policies – or if the U.S. and China could not agree to some other form of compensation. “Before the Trump administration came along and decimated the WTO appellate body, a case like this would be appealed,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics. But Bown said the retaliation issue is “largely moot anyway,” since China responded to America's tariffs with its own levies beginning in July 2018. China did not have WTO permission to retaliate against the United States so they, too, were arguably a violation of global trade rules. The administration has continued to play an active role in the WTO although many of its biggest trade offensives over the past three years have bypassed the formal organization rules. While other countries have criticized the United States for weakening the global trading system, the administration argues that the WTO is largely ineffective and badly in need of overhaul, in part because of its failure to police China's unfair trade practices. So, we will see. There is broad suspicion regarding the WTO on both sides of the U.S. political aisle because it promotes policies that are accused of undercutting “national sovereignty.” And, by working to promote “equitable trade,” the organization's policies can increase competitive pressures from overseas producers. Still, a rules-based international trading system is highly valued by many who believe that tariff-based approaches significantly raise prices for consumers and have, in the past, sharply amplified international tensions. Clearly, trade policy debates are vitally important to producers and should be watched closely as they intensify, Washington Insider believes.
| Rural Advocate News | Thursday September 17, 2020 |
House Ag Panel Chair Peterson Discusses Focus On Farm Policy Ahead House Ag Committee Chairman Collin Peterson, D-Minn., told members of the National Farmers Union (NFU) that he favors giving USDA the authority to use Commodity Credit Corporation (CCC) funds to address issues with compensating livestock producers for animals that are euthanized for reasons other than a disease outbreak. “The pork producers are too efficient,” Peterson said. “They were so efficient that everything had to fall in place for everything to work out OK. When the plants shut down, everything backed up, especially in my district.” USDA Secretary Sonny Perdue said he could not address the problems in the pork plants because he only had authority to deal with animals that are sick. Peterson said he wants to provide USDA authority to deal with disaster situations whether it is a human pandemic, African swine fever, foot-and-mouth disease or another round of avian influenza. Peterson faulted Trump administration efforts on the Market Facilitation Programs (MFP 1 and 2) and Coronavirus Food Assistance Program (CFAP 1), saying they “were basically done without much consultation” with Congress. Relative to CFAP, he cited issues with the period of covered losses and the lack of coverage of some crops as issues with the program and linked them to a failure to work closely with Congress.
| Rural Advocate News | Thursday September 17, 2020 |
Ag Groups Pushing Lawmakers On CCC Borrowing Authority In FY 2021 The issue of borrowing authority for the Commodity Credit Corporation (CCC) looms in the process of putting a stop-gap spending plan in place. Coalition letter to congressional leaders pushes CCC funding. The American Farm Bureau Federation and more than 40 other agriculture organizations are asking Congress to ensure USDA has the tools necessary to help farmers in times of crisis. The group sent a letter to House and Senate leaders requesting they immediately provide replenishment for CCC via the continuing resolution. Without immediate replenishment, funding for farm bill programs could run out while farmers struggle against low commodity prices, natural disasters and the coronavirus pandemic, the groups said. The AFBF separately said that USDA does not likely have the resources needed to meet obligations for conservation and commodity program payments along with another round of the Coronavirus Food Assistance Program (CFAP). Some reports indicate that there are lawmakers pushing back on CCC borrowing authority replenishment, citing the Government Accountability Office (GAO) report on the two Market Facilitation Program (MFP) efforts.
| Rural Advocate News | Thursday September 17, 2020 |
Thursday Watch List Markets 7:30 a.m. CDT reports on Thursday include USDA's weekly export sales, weekly jobless claims, August housing starts and an update of the U.S. Drought Monitor. Trade news and weather forecasts also remain closely watched with a view to activity from China. Weather Thursday will continue to be dry and mild in the primary central crop areas. Conditions will be favorable for row crop ripening and harvest and winter wheat planting. The Southeast will see additional rain from former Hurricane Sally. The western U.S. remains wildfire-prone with a dry and very warm to hot pattern. The Pacific Ocean Southern Oscillation Index (SOI) shows the building of La Nina with a 30-day moving average value of plus 10.0.
| Rural Advocate News | Wednesday September 16, 2020 |
WTO Rules Against U.S. Sanctions on China U.S. Trade Representative Robert Lighthizer was unhappy with a World Trade Organization report that says U.S. actions to combat China’s widespread theft of American technology were inconsistent with WTO rules. Lighthizer says the WTO panel report confirms what the Trump Administration has been saying all along. “The WTO is completely inadequate to stop China’s harmful technology practices,” Lighthizer says. “Although the panel did not dispute the extensive evidence submitted by the U.S. regarding intellectual property theft by China, its decision shows that the WTO provides no remedy for such misconduct.” He says the U.S. must be allowed to defend itself against unfair trade practices, and the administration won’t let China use the WTO to take advantage of American workers, businesses, farmers, and ranchers. The Ambassador adds that it’s important to note that the WTO report doesn’t have an effect on the Phase One Agreement between the U.S. and China, which includes enforceable commitments by China to prevent the theft of American technology. The report covers the $34 billion tariffs announced in June 2018, and the $200 billion trade action announced in September 2018. ********************************************************************************************** Asian Countries Ban German Pork; the U.S. to Benefit Japan, South Korea, and China have suspended imports of pork and live pigs from Germany, which reported its first case of African Swine Fever in a wild boar. The Pig Site Dot Com says the import bans will be a major economic hit to German producers and will also push pork prices to new highs around the world. That price increase will also hurt China, where meat supplies continue to tighten. China is the world’s largest meat buyer and Germany is its third-largest supplier. The supply interruption comes as China is grappling with its unprecedented pork shortage after its ASF outbreak. The Asian bans on German pork are expected to benefit other major exporters like the U.S., Spain, and Brazil. Joe Schuele (SHEE-lee), a spokesman for the U.S. Meat Export Federation, says the U.S. is “well-positioned” to ship more pork to China. Spain’s International Director of Trade says the country’s white pig sector is fully prepared to continue its growth trend in sales of safe and quality pork products to the Chinese market. Unlike other European countries, Spain hasn’t had to shut down any of its pork processing plants recently due to coronavirus outbreaks. ********************************************************************************************** CBB Approves 2021 Checkoff Plan The Cattlemen’s Beef Board will invest approximately $39,380,000 into programs designed for beef promotion, research, consumer information, industry information, foreign marketing, and producer communications during the Fiscal Year 2021. At the end of its September meeting, the Beef Promotion Operating Committee approved checkoff funding for a total of 13 “Authorization Requests,” also known as grant proposals, brought by nine contractors. Those nine contractors brought a total of more than $47,700,000 worth of funding requests to the BPOC, almost $8 million more than what’s available in the budget. “Producers drive all the decisions that the BPOC makes during these meetings,” says CBB and BPOC Chair Jared Brackett. “Cattlemen and women from across the country and importers carefully consider every proposal to determine where we should send these checkoff dollars.” With every decision they make, Brackett says the members’ main goal is to increase beef demand. The committee consists of ten producers from the Cattlemen’s Beef Board and 10 producers from the Federation of State Beef Councils. ********************************************************************************************** Pork Industry Makes Gains in Sustainability A new study released by the National Pork Board shows that despite the challenges of 2020, America’s pig farmers continue to make strides in overall sustainability. The report looked at sow, nursery, finish, and wean-to-finish data over three years. The results reconfirmed long-term trends of increasing efficiency, which has the additional benefit of reducing production costs, especially good news after the economic challenges of 2020 have taken a toll. “One of the greatest benefits of this Pork Checkoff-funded study is the benchmarking ability it offers producers who always want to improve their efficiencies,” says Chris Hostetler, Animal Science Director for the National Pork Board. “It’s also a great way to show today’s consumers that America’s pig farms are getting more efficient all the time and that pork is a sustainable choice when it comes to choosing a protein.” Hostetler also says the goal of the study’s production analysis is to aid the pork industry in improving profitability, which has to be a part of the sustainability equation. “We hope producers will dig into the specific parts of the study and use it to help improve their own farm businesses,” he adds. “It’s all about getting a little better every day.” ********************************************************************************************** USDA Encouraging Ag Producers to Prepare for Hurricane Sally The USDA wants to remind communities, farmers, ranchers, families, and small businesses in the path of Hurricane Sally that they have programs standing by to help in the aftermath. USDA staff in regional, state, and county offices are ready to help deal with any destruction in the wake of the hurricane. The USDA partnered with the Federal Emergency Management Agency and other disaster-relief organizations to create the Disaster Resource Center. The website and web tool now provide an easy access point to find USDA disaster relief information and assistance. USDA also developed a disaster assistance discovery tool specifically targeted to rural and agricultural issues. The tool walks producers through five questions that generate personalized results identifying which USDA disaster assistance programs can help them recover from a natural disaster. Livestock owners and contract growers who experience above normal livestock deaths due to specific weather events, as well as disease or animal attacks, may qualify for help under the USDA’s Livestock Indemnity Program. In the event of land damage, farmers and ranchers needing to help rehabilitate their farmland can apply for help through the Emergency Conservation Program. ************************************************************************************ USB CEO to Discuss Challenges, Positives to Women in Agribusiness Summit United Soybean Board CEO Polly Ruhland (ROO-land) will be one of several future-focused keynote speakers during the Women in Agribusiness Summit taking place virtually this week on September 16-18. She says there is no “sugarcoating” the first three quarters of 2020. “These past few months have been exhausting, confusing, heartbreaking, and frightening,” Ruhland says. “At the same time, when I look to the future of U.S. soy, the broader agriculture industry, and the society it supports, I find substantial reasons for optimism.” At the center of many upcoming opportunities for agriculture are the women in agribusiness playing key roles in shaping the future of the industry. “Women play an increasingly important role leading the growth and development of U.S. agriculture, and we should continue to be front and center in our efforts to strengthen farmers’ bonds with the general population,” Ruhland adds. “I’m incredibly proud to speak with the many women who will attend the WIA Summit who have stepped up to lead our industry to cultivate inclusivity and innovation.”
| Rural Advocate News | Wednesday September 16, 2020 |
Washington Insider: USDA Payments Unfair, GAO Says Yet another dust-up is surrounding USDA's ag aid program — and that still another Government Accountability Office report has found wide differences among states and regions and crops in government aid. Senate Democrats told Bloomberg that the GAO's findings “confirm their long-standing complaints that the administration's $28 billion trade aid program was unfair to family farmers in the Midwest since farms in the South got higher average payments. Also, a large portion of the aid went to bigger farms. “It's just not been fair,” said Senator Debbie Stabenow, D-Mich., the top-ranking Democrat on the Senate Agriculture Committee. Secretary Perdue “certainly put together a program that favored the crops in his home state.” Rural voters are a key constituency for the Trump administration as the president heads into the November elections. Government aid has become an increasingly important source of income for farmers amid the financial stresses of the coronavrius pandemic, the trade war with China, a commodity glut and wild weather. The independent GAO investigation was requested by Senator Stabenow in February after she raised concerns about unfairness and mismanagement of the USDA Market Facilitation Program. Stabenow joined Sen. Sherrod Brown, D-Ohio, and producers to announce the report and discuss the findings. “From the start, I've been concerned that the Trump Administration's trade payments have picked winners and losers and left smaller farms behind,” said Senator Stabenow. “By favoring Southern farms but providing no help to our cherry growers, USDA has not treated Michigan farmers fairly. She called the uneven treatment a “pattern that we're continuing to see in USDA's COVID-19 relief program. And she called on the administration “to stop playing favorites and start helping the farms hit the hardest.” She also called the administration's trade policy with China. and its continued efforts to undercut the Renewable Fuel Standards “mismanaged” and argued that the “administration has betrayed the small farmers who need help the most.” She noted that eight of the top nine states with the highest payments per acre were in the South. The program paid farmers in Michigan an average of $54 per acre, compared to farmers in Georgia who received an average of $119 per acre, she said. Georgia leads the nation with average payments of $42,545 per farmer, more than double the average payment in Michigan of $15,367. The payments for certain crops like cotton, which is primarily grown in the South, far exceeded payment rates for others. Less than 10% of payments went to farms that produced specialty crops, dairy, or hogs. “Most Michigan specialty crop producers were not even eligible for direct assistance,” she said. In addition, she argued that large farms benefitted far more than smaller ones. USDA doubled the maximum payment from the current programs from the $125,000 per person the earlier program allowed to $250,000 per person this time around—a shift that directed more dollars to the largest farms and ignored smaller ones that were struggling. As a result, the top 1.3% of payment recipients received an additional $519 million. GAO also found that the top 25 farms received an average of $1.5 million per farm, whereas the average Michigan farmer received $15,367. She concluded that “instead of providing more support for the 9,852 largest farms, USDA could have targeted funding to the thousands of small and beginning farmers that are often more vulnerable to market swings.” Senator Stabenow's criticisms are not new and she notes that continuing analyses show continued bias in the program. “Kansas State University researchers agreed with these findings in an economic analysis of the distribution of trade assistance, finding that cotton payments were 33 times more than the estimated trade damage,” she said. A USDA spokesperson said the aid payments were “based on trade damage, not on regions or farm size.” A follow-up statement accused Senate Democrats of trying to twist the data. She says the “next installment of farm aid for COVID-19 relief should include congressional instructions on distribution rather than giving Perdue a “blank check.” USDA defended the portion of aid given to larger operations that “account for 10% of all farms, but operate 52% of total farmland and generate 79% of the total value of production. As a result, trade impacts on these farmers were relatively greater, so they received higher payments.” So, we will see. Certainly, as generation after generation of voters increasingly lose touch with their ag roots — if any — expensive programs to subsidize and protect agriculture are likely to become increasingly difficult to pass. These trends also appear likely to lead to a type of agriculture defined more by social objectives than productivity and efficiency — trends producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Wednesday September 16, 2020 |
US Issues Five WROs On China Products The U.S. Customs and Border Protection (CBP) Monday issued five Withhold Release Orders (WROs) on various products from China linked to state-sponsored forced labor in the Xinjiang Uyghur Autonomous Region. The WROs direct CBP officers at ports of entry to withhold release of the following: All products made with labor from the Lop County No. 5 Vocational Skills Education and Training Center; hair products made in the Lop County Hair Product Industrial Park; -Apparel produced by Yili Zhuowan Garment Manufacturing Company, Ltd., and Baoding LYSZD Trade and Business Company; -Cotton produced and processed by Xinjiang Junggar Cotton and Linen Company, Ltd.; -Computer parts made by Hefei Bitland information Technology Company, Ltd., in Anhui, China. While the action is not as broad as had been feared, acting CBP Deputy Secretary Ken Cuccinelli said the new orders would be in place while the administration conducts more legal analysis of the region-wide import bans, with CBP acting Commissioner Mark Morgan telling reporters that the investigations continue. Reports indicate that some in the Trump administration raised concerns about supply chain disruptions that could evolve with broader bans. Cuccinelli said legal concerns were the factor in the administration opting to further investigate the situation. “We want to make sure that when we do get challenged - and we assume that we will be challenged, legally - that we will prevail and none of the goods we would ultimately would seize under such a WRO would be shaken loose and released into the United States,” he stated. Indications are the companies targeted by CBP are smaller suppliers but some remain concerned about the potential impact if the U.S. broadens the actions. China, as expected, reacted angrily to the U.S. moves. The actions "violate the rules of international trade, and disrupt global industrial, supply and value chains," Foreign Ministry spokesman Wang Wenbin told reporters. “The so-called forced labor issue is entirely fabricated by some organizations and people in the U.S. and the West.” He further noted China will take action to protect the rights and interests of Chinese companies.
| Rural Advocate News | Wednesday September 16, 2020 |
CFAP Payments Close In On $10 Billion Payments under the Coronavirus Food Assistance Program (CFAP) increased to $9.9 billion as of September 13, including $4.9 billion for livestock, $2.6 billion for non-specialty crops, $1.7 billion for dairy and $647 million for specialty crops. Payments for cattle make up the biggest share at $4.2 billion out of the $4.8 billion paid out for livestock. Payments for hogs are at $597 million. The $2.6 billion for non-specialty crops accounts for 26% of all payments, with $1.7 billion of that for corn, $499 million for soybeans, and $255 million for upland cotton. Payouts by state have shifted slightly, with Iowa still the top state at $961 million, followed by Nebraska ($701 million), California ($606 million), Minnesota ($601 million and Texas ($598 million. Wisconsin is the only remaining state at $500 million or more at $519 million. It is not clear how much the totals for CFAP will increase in coming reports as the signup deadline was September 11.
| Rural Advocate News | Wednesday September 16, 2020 |
Wednesday Watch List Markets The U.S. Commerce Department releases August retail sales at 7:30 a.m. CDT, followed by the Energy Department's weekly inventory report at 9:30 a.m. CDT. The Federal Reserve concludes its 2-day meeting with an announcement at 1 p.m. CDT, possibly containing important clues of monetary policy. Weather Warm and dry conditions will cover all primary crop areas Wednesday. This combination again favors row crop ripening and harvest along with winter wheat planting. Rain will focus in the Southeast where Hurricane Sally threatens extensive flooding. Western wildfire conditions show no sign of easing with very warm and dry weather again in place.
| Rural Advocate News | Tuesday September 15, 2020 |
Report finds Market Facilitation Program Unfair A new report finds the Market Facilitation Program created deep regional inequities, favored certain crops over others, and funneled money to large agricultural operations over smaller farms. Announced by Senator Debbie Stabenow, the ranking Democrat on the Senate Agriculture Committee, the report is the result of a Government Accountability Office investigation. Stabenow requested the investigation in February of this year, and says, “The Administration needs to stop playing favorites and start helping the farms hit the hardest.” The report found southern farmers benefitted significantly compared to other regions. Eight of the top nine states with the highest payments per acre were in the South. Additionally, the report highlights unfairness between crops, and large farms befitted over smaller farms. The report says that Instead of providing more support for the 9,852 largest farms, USDA could have targeted funding to the thousands of small and beginning farmers that are often more vulnerable to market swings. ************************************************************************************ EPA Rejects Gap-year Waivers Growth Energy this week welcomed the Environmental Protection Agency’s decision to reject so-called ‘gap-year’ exemptions from the nation’s biofuel laws. In total, the agency had received 68 retroactive exemption requests from petroleum refiners seeking to skirt obligations under the Renewable Fuel Standard and the move Monday denies the majority of pending requests. Growth Energy CEO Emily Skor says, “Today’s action lifts a cloud of uncertainty that has been hanging over America’s farmers and biofuel producers since June.” In the announcement, EPA Administrator Andrew Wheeler says, “This decision follows President Trump’s promise to promote domestic biofuel production.” Wheeler adds, “We are delivering on that promise by following the rule-of-law and ensuring 15 billion gallons are blended into the nation’s fuel supply.” Meanwhile, over the weekend, Trump announced an executive order to allow E15 to be used in any pumps approved for E10, the national standard. The move should allow for more expansion of E15 in the market. ************************************************************************************ Brazil Tariff Rate Quota for Ethanol Extended for 90 Days Brazil’s tariff rate quota for ethanol has been extended for an additional 90 days, starting September 14. After expiring on August 31, a 20 percent tariff was temporarily applied to all U.S. ethanol. U.S. corn and ethanol groups expressed disappointment in the move, saying, “we would have preferred Brazil abandon its ethanol import tariffs entirely and resume its free trade posture on ethanol.” The comments came in a joint statement from the U.S. Grains Council, Growth Energy, National Corn Growers Association, and the Renewable Fuels Association. Leaders of the organizations say the extension "serves neither Brazil's consumers nor the Brazilian government's own decarbonization goals." However, the groups note they will use the extension to "aggressively pursue an open and mutually beneficial ethanol trading relationship with Brazil." The exemption expired as both sides seek a new trade agreement regarding U.S. ethanol. The TRQ allows 198 million gallons of U.S. ethanol to avoid Brazil’s 20 percent tariff annually. ************************************************************************************ Branstad Stepping Down as U.S. Ambassador to China Terry Branstad, U.S. Ambassador to China, will step down to work on the Donald Trump re-election campaign. Reuters reports sources familiar with the matter cite Branstad’s popularity in Iowa, having served there as governor for over two decades, as an asset to Trump. Branstad will resign and leave China early next month. The resignation was first revealed on Twitter by Secretary of State Mike Pompeo. A spokesperson from China’s Foreign Affairs Ministry Monday stated, “We noted the tweet by the U.S. side and have not yet received notification about the end of Ambassador Branstad’s tenure.” The U.S. Embassy in China confirmed the resignation, however, stating, “The Ambassador confirmed his decision to President Trump by phone last week.” In the statement, Branstad says, “I am proudest of our work in getting the Phase One trade deal and delivering tangible results for our communities back home.” Branstad was previously the longest-serving Governor of Iowa, a state that helped elect President Trump in 2016. ************************************************************************************ NPPC Hosts Legislative Action Conference A COVID-relief package that includes assistance to hog farmers in crisis and foreign animal disease prevention top the list of issues at the National Pork Producers Council’s Legislative Action Conference this week. Pork producers from across the country are gathering virtually to address these and other issues with lawmakers. NPPC President Howard "AV" Roth says, "U.S. pork producers are already suffering considerable losses due to the impact of the COVID-19 pandemic, and cannot afford another catastrophic blow should African swine fever or other foreign animal diseases enter our country." Last week, Germany reported its first African Swine Fever case in a wild boar, as the disease continues to spread. NPPC is urging Congress to fully fund foreign animal disease prevention programs. U.S. Bureau of Customs and Border Protection agriculture inspections at U.S. ports of entry are funded by Agricultural Quarantine Inspection program user fees. Due to the COVID-related economic downturn and significant reductions in travel, collection of these user fees has dropped precipitously. ************************************************************************************ Wine Caucus Seeks CFAP Funding for Wine Producers A group of lawmakers want the Department of Agriculture to include wine grape producers in the Coronavirus Food Assistance Program. The Congressional Wine Caucus, a group of lawmakers representing wine-producing states, sent the request to Agriculture Secretary Sonny Perdue last week. The lawmakers say the cessation of wine sales in multiple market channels has disrupted supply chains and forced wine grape growers “to swim against a tide of deteriorating prices.” An industry analyst projects revenue losses for the nation’s 10,000 wineries and 8,000 growers due to COVID-19 could reach $5.94 billion. Due to the unique character of the wine grape crop cycle and the processing, marketing, and sales of wine, wine grape growers and the organizations representing them have struggled to quantify a price decline for wine grapes during a January to April timeframe, as dictated currently by CFAP requirements. The lawmakers believe the “narrow, retrospective timeframe unfairly denies support to a vitally important sector of the agricultural community, one that is responsible for an enormous amount of economic activity.”
| Rural Advocate News | Tuesday September 15, 2020 |
Washington Insider: Fed's Unconventional Approaches Becoming Conventional The coronavirus has shifted many economic “new approaches” into “more routine” policies, Bloomberg is reporting this week. The report concludes that global central bankers are discovering that “monetary policies they once viewed as unconventional and temporary are now proving to be both conventional and long-lasting. Forced to think more broadly by the 2008 financial crisis and then again this year by the coronavirus pandemic, the Federal Reserve, European Central Bank and most of their international counterparts have become “more aggressive and innovative than ever in defending their economies from recession and the threat of deflation.” Recent months witnessed a return not just of policies first used on a widescale basis following the collapse of Lehman Brothers Holdings Inc., such as quantitative easing, but the adoption of even more esoteric ones. And, most central banks are diving deeper into this unknown. The Fed is buying different types of bonds, the ECB is getting creative with negative interest rates. Australia has adopted Japanese-style efforts to control bond yields, Bloomberg said. With the global recovery still uncertain and the virus set to leave scars on employers and employees, the likelihood is that monetary policy will stay ultra-loose for years to come — even if that means central banks artificially propping up markets or sparking a run-up in prices. Such an outlook was underscored by the Fed's recent decision to say it will allow inflation to run above its 2% target in the future if needed to make up earlier undershoots. The Fed meets to set policy this week, as do the Bank of Japan and Bank of England, putting investors on alert for any signs of yet more innovation. “The coronavirus crisis is many times more destructive than the financial crisis of 2008,” said Steve Barrow, head of foreign-exchange strategy at Standard Bank. “There's every reason to believe that the move to tighter monetary policy will take as long — and probably much longer — than the post-financial-crisis period.” The mounting debate is whether the need to prop up economies will ultimately push central banks to do even more, perhaps in unison with governments. Monetary policy makers are already working closer than ever with their fiscal counterparts despite the traditional separation of responsibilities. Potential steps include directly financing government budget deficits, a key tenet of Modern Monetary Theory which plays down the idea that there's anything scary about monetizing debt. MMT, an old concept rebranded, is a prime example of formerly fringe notions gaining in prominence. Policy makers are resisting such approaches for now, but they haven't shied away from stretching their existing measures to extremes. Economists at Bank of America Global Research reckon that as of the end of July, central banks had cut interest rates 164 times in 147 days and committed $8.5 trillion in stimulus. JPMorgan Chase & Co.'s measure of average global rates stands at just 1%, and that of developed nations is below zero for the first time. The Fed, for example, responded to the pandemic with similar policies to those of 2008 but far faster — and then went even further. It slashed its benchmark to virtually zero and resumed buying government bonds, as well as widening its emergency lending authority to extend aid to municipalities, small and medium-sized companies, and large corporations. Its balance sheet is now at $7 trillion, compared to $4 trillion in January and the previous peak of $4.5 trillion in 2015. The Fed has so far balked at cutting rates below zero, as the ECB and BOJ did years earlier, for fear of roiling the banking system or irking lawmakers. The ECB actually enhanced its own policy in March, though, by introducing a super-low rate — even cheaper than its benchmark — for banks that use the cash to lend to the real economy. The central banks of Australia, New Zealand and India are echoing Japan's yield curve control with policies that are deliberately trying to influence bond yields at specific maturities. As for what assets central banks are willing to buy, there has been a sea-change well beyond U.S. shores. Australia, New Zealand and Canada bought government bonds for the first time this year with the latter also purchasing corporate debt. South Korea and Sweden began purchasing company bonds and commercial paper. More central banks are also embracing so-called forward guidance, in which they commit to keeping their policy loose for a certain period to boost the confidence of investors, consumers and companies. “As unconventional becomes the new conventional, central banks face fresh challenges,” said Tom Orlik, chief economist for Bloomberg Economics. “Extreme stimulus has worked well on the way in, exiting will prove harder to do — the first signs of rising inflation will be a test. Mission creep has pushed central banks into areas where coordination with fiscal policy and the need for democratic accountability raise questions about independence.” So, we will see. While many economic relief measures were imposed quickly after this year's pandemic emerged, additional efforts now being advocated are facing new pushback in many quarters as inflation fears increasingly mingle with politics — and, as the anti-virus fight continues to be far tougher than expected. These are creating ongoing election debates that should be watched closely as they intensify, Washington Insider believes.
| Rural Advocate News | Tuesday September 15, 2020 |
Still Waiting On CFAP 2 Attention remains on USDA and the timing of an announcement of another round of aid for farmers under the Coronavirus Food Assistance Program or CFAP 2. The effort, sources advise, will shift to using revenue as the benchmark to determine payments as opposed to price as was used to make the first CFAP payments. Those payments covered the period to mid-April, and USDA Secretary Sonny Perdue has signaled the next round will over a period beyond April 15. The measure was still shown as being under review at the Office of Management and Budget (OMB) as of the close of business Friday (September 11).
| Rural Advocate News | Tuesday September 15, 2020 |
EPA Denies Batch of 'Gap-Year' RFS Waiver Requests EPA has denied 54 requests for small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) that were submitted as “gap” filling requests, the agency announced Monday. The Department of Energy provided its recommendations on 54 of 68 SREs that had been received by EPA since March, recommending either no relief or 50% relief for the refiners submitting the requests. EPA said the decision covers 54 of the SREs and that DOE has not yet provided its recommendations for the other 14 requests. However, given the reasons laid out by EPA Administrator Andrew Wheeler, some observers expect the remaining 14 will also be denied. EPA said it based its decision in part on the reasoning that if the refiners in question had suffered harm, they would have previously requested the SREs years ago. That is similar to questions raised by Wheeler relative to the requests previously – that it was difficult to claim injury if the refiner was still in business.
| Rural Advocate News | Tuesday September 15, 2020 |
Tuesday Watch List Markets Attention to weather now includes South America with a new planting season about to begin. A report of U.S. industrial production for August is due out at 8:15 a.m. CDT Tuesday, followed by a private estimate of the U.S. soybean crush in August, later Tuesday morning. The Federal Reserve begins a two-day meeting, the final one before the November election and traders will be watching Wednesday's announcement for clues of future policy. Weather Tuesday will be dry and mild across the central U.S., favoring row crop ripening and harvest along with winter wheat planting. Meanwhile, the Southeast faces heavy flooding rain from Hurricane Sally. Wildfire conditions and smoky air continue in the Northwest. Internationally, rain prospects are improving in central Brazil which favor soybean planting activity.
| Rural Advocate News | Monday September 14, 2020 |
September WASDE Report Shows Lower U.S Corn, Soybean Production The September World Ag Supply and Demand Estimates from USDA show U.S. corn production is down two percent from the August forecast. Soybean production dropped six percent from the previous month. Corn production is forecast at 14.9 billion bushels, still nine percent higher than 2019. Yields will be a record 178.5 bushels per acre, down 3.3 bushels from August. Corn ending stocks will drop by 253 million bushels from last month, while the season-average price jumps 40 cents to $3,50 a bushel. Soybean production is forecast at 4.3 billion bushels, down 112 million on a lower yield forecast at 51.9 bushels per acre. Ending stocks are projected at 460 million bushels, down 150 million from August. The season-average soybean price is projected at $9.25 a bushel, up 90 cents from last month. The wheat supply and demand outlook is unchanged this month, but there are offsetting by-class changes for wheat exports. The season-average farm price remains at $4.50 a bushel. ********************************************************************************************** Peterson Wants Confirmation That EPA Will Reject SREs House Ag Committee Chair Collin Peterson says he’s seen nothing in writing that President Donald Trump told the Environmental Protection Agency to reject any small refinery exemptions under the Renewable Fuels Standard. The Hagstrom Report says Peterson is fearful the report may be speculation that the president will try to use until after the election. Recent reports quoted anonymous sources as saying Trump directed the EPA to reject the small refinery exemptions for past years that oil companies were requesting. Groups like the Renewable Fuels Association, National Corn Growers Association, the American Coalition for Ethanol, and other groups that back ethanol were pleased by the reports. However, a spokesman for the Renewable Fuels Association told the Hagstrom Report that the EPA hasn’t confirmed it will reject those “gap-year” exemptions. During a recent political debate, Peterson says the recent speculation in Washington DC is based on anonymous sources. The Minnesota Democrat recently introduced a bill that would require the EPA to be transparent about its decision-making surrounding the RFS in the future. ********************************************************************************************** FCA Issues Report on Economic Conditions in Agriculture Late last week, the Farm Credit Agency issued its quarterly report on the economic conditions in American agriculture. The report says for the past several years, government payments have played an important role in the farm economy and making up an ever-increasing share of farm income. “For 2020, about two-thirds of government payments are coming from ad hoc and supplemental assistance programs,” the report says. “While substantial ad hoc government payments are helping a lot of producers this year, there isn’t a guarantee that they’ll get the same level of help in 2021.” Cash receipts in 2020 are forecast to decline by 3.3 percent to $358.3 billion. Looking at the overall Farm Credit System, the FCA says it is safe and financially sound. Cash expenses are down 1.3 percent due to lower interest expense. Portfolio credit measures were more mixed, but there are indications of a slight increase in stress on portfolios in agriculture. System earnings were strong and continue to support additional capital growth. The FCA says system institutions across the country are in good shape to help support and grow the farm economy and communities in rural America. ********************************************************************************************** Grassley Asking Department of Commerce to Lift Steel Tariffs Senate Finance Committee Chair Chuck Grassley and fellow Iowa Senator Joni Ernst sent a letter to the U.S. Commerce Department requesting that Secretary Wilbur Ross lift Sections 232 tariffs on steel. They did so because the move would help Iowa farmers trying to recover from the derecho storm system that rolled through the state in August. The Iowa lawmakers are asking that tariffs be removed on steel that can be used for rebuilding grain bins and machine sheds. “In the wake of this catastrophe, opportunists are offering extremely high estimates to Iowans for the steel they need to rebuild their homes, farms, businesses, and communities,” they say in the letter. “Many farmers have told us that the increased prices for steel would collectively add hundreds of millions of dollars in cost to them. This can’t happen.” The senators also note that Iowans have rebuilt before and will do it again, but “there’s no reason to make it any harder than it needs to be.” Back in early August, a historic derecho storm swept through the state doing enormous amounts of damage. ************************************************************************************ Ag Equipment Sales Continue a Positive Trend in August Unit sales of agricultural tractors and self-propelled combines in August were positive for the fifth month in a row in the U.S. The trend also stayed above the previous year for the third consecutive month in Canada. The latest data from the Association of Equipment Manufacturers shows U.S. total farm tractor sales rose 12.8 percent last month when compared to 2019. Self-propelled combine sales grew by just one percent. Four-wheel-drive units grew for the first time in the U.S. during August, climbing 14 percent to 218 units. 100-plus horsepower units remain the only slow spot in the market, with 7.8 percent fewer of them finding new owners in August. Total year-to-date farm tractors out the door are up 14 percent this year, while combines are now up 3.6 percent in 2020. “We’re not surprised with seeing growth in combines pick up, with USDA predictions of larger harvest sizes for this year,” says Curt Blades, senior vice president of Ag Services with AEM. “We’re still watching the 100-horse and four-wheel drive sales closely as those are units that indicate just how the large-field farmers are feeling.” He says this month’s overall equipment sales remain above the five-year average and AEM is pleased with that. ********************************************************************************************** Intern Opportunity for Young People at the 2021 Cattle Industry Convention College students have a unique opportunity to attend the 2021 Cattle Industry Convention and NCBA Trade Show in Nashville, Tennessee, February 1-5 next year. The National Cattlemen’s Beef Association is looking for a team of interns to gain firsthand experience and be able to interact with leaders of every segment of the cattle and beef industry. The group needs up to 18 interns to perform vital tasks to help with the success of the largest annual meeting in the U.S. beef cattle industry. Interns will help many different staff members and attendees with meetings and events and should be prepared to handle a wide range of responsibilities, which could include setting up the indoor arena, assisting at committee meetings and Cattle College, as well as posting on social media and contributing in the NCBA booth. NCBA will also provide students with time to maximize industry networking. Students must be at least a junior-level college student, have a background in or working knowledge of cattle and beef, and have a minimum GPA of 3.0. Go to the NCBA website for more information. The deadline for applying is October 23.
| Rural Advocate News | Monday September 14, 2020 |
Washington Insider: Climate, Weather and Data Seasonal change in the weather is increasingly in the scientific cross hairs these days because variations in patterns that help forecasting local weather and the likelihood of floods, drought and other events. New data are being reported and receiving unusual intense interest by the New York Times and other news outlets this summer. For example, reports Thursday that the world had entered La Nina, a climate pattern with impacts across the globe, was widely reported. Among other impacts, the La Nina emergence is thought to boost the potential this winter to “worsen what are already severe drought conditions in the American Southwest.” The NYT report was based on recent work by the Climate Prediction Center – part of the National Oceanic and Atmospheric Administration. That agency said in its most recent monthly forecast that sea-surface temperatures in the central and eastern tropical Pacific Ocean had cooled, signifying “La Nina conditions” that likely would continue through the winter. Like El Nino, which results from warmer-than-normal ocean temperatures in the tropical Pacific, La Nina occurs every two to seven years on average. And like El Nino, it leads to changes in atmospheric circulations that can affect weather in unconnected parts of the world. La Nina's strongest influence is usually felt in winter, the Times said. And while the precise effects are unpredictable, La Nina can result in warmer and drier conditions across the Southern United States and cooler conditions in southeastern Alaska, the Northern Plains and western and central Canada. It can also lead to a wetter winter in the Pacific Northwest. Mike Halpert, deputy director of the Climate Prediction Center, said that as a result of La Nina, Southern California, as well as most of Arizona and New Mexico, could “tilt toward dry” this winter. Southern California, which gets most of its rainfall from late fall to early spring, is already abnormally dry, according to the United States Drought Monitor. Those conditions have contributed to numerous wildfires this summer. All of Arizona and New Mexico are in varying stages of drought, from moderate to severe. But La Nina can have effects around the globe. The most consistent impact is in Indonesia, which usually sees increased rainfall, but La Nina can also lead to dry conditions in Eastern China and East Africa and cool and wet conditions in Southern Africa and Southeastern Brazil. NOAA scientists said this summer that the decreasing sea-surface temperatures in the tropical Pacific were a factor in their prediction that the North Atlantic hurricane season would be an active one. La Nina influences atmospheric conditions in the North Atlantic that would otherwise tend to disrupt hurricanes as they form. Emily Becker, associate director of the Cooperative Institute for Marine and Atmospheric Studies at the University of Miami, said that since the last El Nino ended in 2019, ocean temperatures in the tropical Pacific had been “neutral,” neither abnormally warm or cool. But that began to change this summer. “We saw some pretty substantial easterly winds,” she said. “It might have cooled a little faster than we would have expected, but not radically so.” These west-to-east trade winds cooled the ocean surface and also led to upwelling of deep, colder water to the surface, Dr. Becker said. The resulting shift of warmer water to the western tropical Pacific affects the jet stream, the high-altitude river of air that moves west to east and serves to separate colder and warmer air. It is this change in the jet stream that can modify the North American winter, Dr. Becker said. El Nino affects the jet stream, too, although in different ways, and leads to changes that are often the opposite of La Nina's, including wetter conditions across the Southern United States. Dr. Becker said current models suggested that this La Nina would not persist through the spring. Bloomberg also noted the new climate-change event the Times noticed, but emphasized a further detail. It said that while the crop world, including major trading houses and statisticians at the USDA, has long depended on scouts trudging through fields to count corn kernels and soybean pods, travel restrictions and new virus safety measures “now have cut participation in field tours at a time of increasing scrutiny over food security.” The report also noted that student Lillian Kay Petersen had won the top prize of this year's Regeneron Science Talent Search, a 79-year-old competition for high school students held by the Society for Science and the Public, for her model that uses daily satellite images to predict crop yields in Africa. Bloomberg says that even before the pandemic, USDA eliminated part of its in-person field checks. In 2019, it decided not to do so-called objective yield analysis in fields during the month of August and rely more on satellite imagery and phone surveys until fields of corn and soybeans were further developed. Meanwhile, for its global outlook, the agency already is heavily reliant on satellite imagery and meteorology data, according to Seth Meyer, assistant director of the University of Missouri's Food and Agricultural Policy Research Institute and former chairman of USDA's world agriculture outlook board. So, we will see. Highly accurate and timely crop data are extremely valuable and ways to improve the current systems have been in development for decades. That search seems far from over, but the stakes appear to be increasing. Certainly, this competition is one producers should watch closely as it continues, Washington Insider believes.
| Rural Advocate News | Monday September 14, 2020 |
Smithfield, JBS Fined For Failing To Protect Employees From Coronavirus The Department of Labor's Occupational Safety and Health Administration (OSHA) has levied fines of $13,494 against Smithfield Foods and $15,615 against JBS for “failing to provide a workplace free from recognized hazards that can cause death or serious harm." The Smithfield fine and citation was related to employees of the firm's Sioux Falls, South Dakota, plant where at least 1,294 employees contracted COVID-19 and four died. But the fine was criticized by union officials who labeled it merely a slap on the wrist for Smithfield. "The failure by the Trump Administration to hold Smithfield accountable makes clear that this White House cares more about industry profits than protecting America's essential workers," said Marc Perrone, president of the United Food and Commercial Workers International Union. JBS was fined for more than 300 workers becoming ill at its plant in Greeley, Colo., that has led to at least six workers dying. JBS USA issued a statement Friday stating that the OSHA citation is without merit. This comes after California issued its own fines as earlier last week.
| Rural Advocate News | Monday September 14, 2020 |
Grassley, Ernst Urge Relief From Section 232 Tariffs On Steel As State Rebuilds From Derecho Iowa Republican Sens. Chuck Grassley and Joni Ernst have called on the Department of Commerce (DOC) to provide an exemption from the Section 232 tariffs on steel, noting that “opportunists” are offering extremely high estimates to Iowans for the steel they need to rebuild their homes, farms, businesses, and communities. Specifically referencing steel grain bins that need to be replaced after being damaged or destroyed by the derecho storm, the lawmakers said a “number of farmers have told us that the increased prices for steel would collectively add hundreds of millions of dollars in costs for them.” They pointed to testimony Commerce Secretary Wilbur Ross delivered when asked in June 2018 about when consumers would see relief from high steel prices. Ross testified that there had been “speculative activity” that had been taking place by “various intermediary parties,” noting DOC was investigating the situation. The lawmakers urged the exemption be ordered by Commerce as the current exclusion process involves number forms to be submitted and can take months to reach a conclusion. “We can assure you that you don't need paperwork or more than a moment to see that either of your Department's criteria is met here,” the letter stated. They also pointed out lifting the tariffs would not injure domestic steel producers but allow for imports to increase supply in this emergency situation, something which the letter points out Commerce has indicated it needs relative to the authority to have “flexibility in case of an emergency.” The two conclude, “Well, there's clearly one now.”
| Rural Advocate News | Monday September 14, 2020 |
Monday Watch List Markets The third Monday in September starts with traders keeping an eye on weather forecasts for the U.S. and South America and then pausing to see if there is an export sales announcement at 8 a.m. CDT. USDA's weekly report of grain export inspections is due at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Weather Warm and dry conditions will cover most primary crop areas Monday. This pattern will favor crop maturation, row crop harvest and winter wheat planting. The Northwest has high wildfire risk with continued smoky air problems. Tropical Storm Sally threatens heavy rain in the Gulf Coast by midweek. The Pacific Ocean Southern Oscillation Index (SOI) 30-day moving average is at La Nina levels with a reading of plus 9.09.
| Rural Advocate News | Friday September 11, 2020 |
Senate Fails to End Debate on Coronavirus Aid Package On Thursday, the Senate failed to end debate on the coronavirus aid package proposed by Senate Majority Leader Mitch McConnell. The vote was 52-47, while the measure needed 60 votes to end the debate. Republican Kevin Cramer of North Dakota says, “The message from Senate Democrats is clear; they would rather let people be hurt than give people help because they think it will give them an advantage in November.” Cramer says Democrats seem to think if they don’t get “everything they want,” then the American people will get nothing at all. Senate Democrats say the package, which has been described as “skinny,” was too small to provide any meaningful help. The Hagstrom Report says the package included $20 billion for farmers and ranchers but no increase in the Supplemental Nutrition Assistance Program, a key demand of Senate Democrats. The failure to end debate and go to a vote means that the current Senate proposal is dead. That means the likelihood of passing another coronavirus aid package before Congress leaves at the beginning of October is low. ********************************************************************************************** AEM Asking Congress to Extend the FAST Act The Association of Equipment Manufacturers and several industry partners sent a letter to Congressional leadership, asking for a one-year extension of the current surface transportation law. The Fixing America’s Surface Transportation (FAST) Act is set to expire on September 30. “As our industry and our country continues to navigate the lasting effects of COVID-19, we need congressional leaders to rise to the occasion and help keep the wheels moving on critical infrastructure projects around the country,” says Dennis Slater, President of AEM. “As states and local governments continue to see budget shortfalls due to COVID-19, ensuring that the much-needed repair and modernization of our surface transportation system can continue will create American jobs and boost demand for construction equipment.” AEM and dozens of industry partners want members on both sides of the aisle to work together on a long-term, fully-funded reauthorization that will better prepare America’s roads, highways, bridges, and public transit systems to meet the demands of a “globally-competitive 21st-century economy.” The letter to congressional leaders asks for a “turn-key, one-year extension of the current surface transportation law with increased investment levels” in the nation’s infrastructure. ********************************************************************************************** USDA Looking for Input on Ag Innovation Agenda To further the USDA’s work on its Agricultural Innovation Agenda, the agency is asking for public-and-private-sector input on the most innovative technologies and practices that can be readily deployed across the country. USDA is looking for ready-to-go technologies and practices that will help achieve its goal of increasing agricultural production by 40 percent to help meet global population needs in 2050. At the same time, they also want technologies and practices that help cut the carbon footprint of U.S. agriculture by 40 percent. “Across America, we’ve seen significant advances in agricultural production efficiency and conservation performance during the past two decades,” says Bill Northey, Undersecretary for Farm Production and Conservation. “We want to keep the momentum going and help farmers access new approaches through our Agricultural Innovation Agenda.” To help identify and accelerate the adoption of ready-to-go innovations, USDA is accepting public comments and written stakeholder input. A ready-to-go practice, technology, or management approach includes those that are fully developed, have been field-tested, and have completed independent research trials. Based on the input, USDA will develop a comprehensive agriculture innovation strategy for its customer programs, all of which will be found on their AIA website. ********************************************************************************************** FFA Giving Back to Indianapolis The city of Indianapolis won’t get to experience a sea of blue jackets this fall because the National FFA Convention and Expo are going virtual. However, that doesn’t mean FFA won’t be giving back to the Indianapolis community. As a part of helping the host city, the National FFA Organization announced it is donating $10,000 to the Indiana Hospitality Relief Fund through the Indiana Restaurant and Lodging Association. “The Indianapolis hospitality industry always rolls out the red carpet for us each October,” says FFA CEO Mark Poeschl (PESH-uhl). “This unprecedented time has created hardships for many people. While we won’t see many of our friends around the city in-person, we want them to know we’re thinking about them.” The national convention and expo typically bring in more than 65,000 people to the city and have an annual impact of more than $35 million on the city. FFA members typically give back during the convention through National Days of Service. As this year’s convention is a virtual one, FFA will be giving back through National Days of Service in locations around the country. The National FFA Convention and Expo are scheduled for October 27-29. ************************************************************************************ #Glamburger Introducing More Consumers to American Lamb The American Lamb Board’s #Glamburger campaign inspired consumers, influencers, and chefs to help create unique lamb burgers in celebration of summer. The checkoff promotion focused on enticing consumers to try ground American Lamb because of its affordability, delicious flavor, and ease of preparation. The campaign included two components: #ProjectGlamburger and the #Glamburger Challenge. The #Glamburger Challenge contest asked consumers to share a picture of their favorite lamb burger on social media, with a chance to win a $1,000 gift card. #ProjectGlamburger is a series of virtual competitions involving local restaurants and food influencers in key geographical markets. Influencers were invited to craft a new lamb burger to be added to a local restaurant’s menu. The first stop was in Boulder, Colorado, at the Rooted Craft Restaurant. After a stop in San Francisco, California, at a restaurant called Son’s Addition, the #ProjectGlamburger event is on its third stop in Washington, DC. Food influencers in the nation’s capital are working on creating their burger concepts in hopes of seeing theirs added to the menu at the Little Sesame restaurant. ********************************************************************************************** ISU: U.S Ready to Meet China’s Increasing Import Demand China’s demand for U.S. corn is surging, and Iowa State University’s Center for Agriculture and Rural Development says the U.S. is ready for that demand. “The recent derecho storm caused a great deal of damage to Iowa’s corn and soybeans, but total predicted national corn production for the 2020-2021 marketing year is still the largest ever,” says Dermot Hayes, Professor of Economics at Iowa State University. China’s surging corn demand isn’t the only good news for U.S. farmers. Hayes updated a recent study he co-authored called “China’s Agricultural Imports Under the Phase One Trade Deal: Is Success Possible?” The most recent data says China will now import $21.63 billion in agricultural products from the United States in the first year of the phase one deal, an increase of almost $3 billion from the first prediction in May. The study’s co-authors say while the prediction is still behind the $36.5 billion target set by the deal, the recent market signals are showing that China has record demand ahead for U.S. corn, poultry, and pork. China’s increased demand for corn and pork relates back to the outbreak of the African Swine Fever Virus that started in 2018 and decimated China’s hog industry.
| Rural Advocate News | Friday September 11, 2020 |
Washington Insider: Support for US Involvement in Southeast Asia Bloomberg is reporting this week that the United States is pushing Southeast Asian countries to review ties with Chinese state-owned enterprises and it is stepping up pressure on Beijing over territorial disputes in the South China Sea. “Don't just speak up, but act,” U.S. Secretary of State Pompeo told participants during a virtual summit with foreign ministers of the Association of Southeast Asian Nations (Asean) on Thursday. “Reconsider business dealings with the very state-owned companies that bully Asean coastal states in the South China Sea.” Tensions in the region have risen in the past few months as the U.S. and China spar on everything from democracy in Hong Kong to data security over popular Chinese apps TikTok and WeChat. In July, the U.S. explicitly rejected China's expansive maritime claims in the region for the first time and sent aircraft carriers to the waters to conduct military exercises. The report noted that China last month fired missiles into the South China Sea, a move that underscored the growing cost of any armed conflict in the region. The missiles showed China's ability to strike out at U.S. bases and aircraft carriers, the major sources of American power projection in the region. Pompeo's remarks came after the U.S. last month announced trade and visa restrictions on 24 companies for their efforts to help China “reclaim and militarize disputed outposts” in the contested maritime area, including the prominent state-owned China Communications Construction Co., a critical builder of “Belt and Road” initiative projects. During the meeting, Pompeo raised concerns over the China's actions in the South China Sea, reiterating that the U.S. regarded Beijing's expansive maritime claims in the waters as unlawful according to a 2016 international tribunal ruling. China regards the U.S. position as illegitimate because it opted out of dispute settlement provisions when it signed up for United Nations Convention on the Law of the Sea. “I know many of you were skeptical about the Trump administration and our intentions when we took office,” he said. “You should have confidence that America will be here in friendship to help you, just as we've been for the last three and a half years.” Secretary Pompeo said that the United States is committed to working with partners in the Indo-Pacific to uphold the rules-based order that has underpinned security and prosperity for more than 70 years. Bloomberg also noted that Vietnam's top diplomat declared that Southeast Asian countries want the U.S. to play a role in maintaining peace in the South China Sea, pushing back against Beijing's comments that American forces were destabilizing the region. Vietnam currently holds the bloc's rotating chairmanship. “We welcome the U.S.'s constructive and responsive contributions to Asean's efforts to maintaining the peace, stability and developments in the South China Sea,” Vietnam Foreign Minister Pham Binh Minh said during the summit. Without naming China, he said the militarization of the sea “eroded trust and confidence, increased tensions and undermined peace, security and rule of law in the region.” Southeast Asian countries were open to opportunities for practical cooperation with the U.S. in the region, Minh said. Vietnam, the Philippines, Brunei and Malaysia have been locked in territorial disputes with China that have impacted their ability to extract fish, oil and gas from offshore areas. At a virtual summit a day earlier, Chinese Foreign Minister Wang Yi told Southeast Asian foreign ministers the U.S. was intervening in territorial disputes and strengthening its military deployment in the contested area “out of its own political purposes.” He called the U.S. “the biggest driver of militarization of the South China Sea,” according to statements posted by China's Foreign Ministry. The U.S. has become “the most dangerous factor that damages the peace in the South China Sea,” Wang said, reiterating China's position that disputes should be solved by regional countries. “Peace and stability are China's greatest strategic interest in the South China Sea, which are also the common aspiration of Asean countries,” he said. On Wednesday, Wang rejected the idea that China pursues expansionist claims, calling it a “distortion” of China's stance. He insisted China's claim of islands in the South China Sea has “abundant historic and legal basis.” He also argued that Chinese construction on reefs and islets was meant to improve living conditions and provide “public good” for the region. “In the face of a non-regional country's military pressure, of course we have the right to protect our own sovereignty,” he said. So, we will see. The U.S. policy of pushing back on Beijing's role in the region is a key part of its overall efforts to oppose global Chinese investment expansion – even while The U.S. expands its Chinese trade in ag products and a few other sectors. China is a growing competitor in the region and a challenging trading partner, a relationship U.S. producers should watch closely as it evolves, Washington Insider believes.
| Rural Advocate News | Friday September 11, 2020 |
USDA Sets Seafood Trade Relief Program (STRP) Details USDA will launch signup for the Seafood Trade Relief Program (STRP) September 14 to make up to $530 million in payments to eligible commercial fishermen that have been “impacted by trade actions of foreign governments resulting in the loss of exports.” Payments under the program are aimed at “expanding or aiding in the expansion of domestic markets for U.S. caught and sold seafood.” Payments under the program are to be made using authority under the Commodity Credit Corporation (CCC) and apply to seafood production reported as harvested in calendar 2019. USDA said that trade damages of more than $5 million were required for the type of seafood to be eligible for an STRP payment. There is a $250,000 payment limit per person or legal entity. Only those commercial fishing operations in business at the time of application are eligible. USDA used the same methodology to determine damages under STRP as they did for the Market Facilitation Program (MFP) and Food Purchase and Distribution Program (FPDP). The Notice of Funding Availability (NOFA) for STRP is scheduled to be published in the Federal Register on September 14.
| Rural Advocate News | Friday September 11, 2020 |
Report: Brazil Likely To Extend Zero Tariffs On Ethanol Imports For Three Months The Brazilian government is expected to revive and extend the effort to allow imports of ethanol for three months with the Brazilian sugar industry seeking negotiations between the two countries to allow more sugar exports to the U.S., according to two sources knowledgeable with the plan, Reuters reported. The sources said Brazilian President Jair Bolsonaro and Agriculture Minister Tereza Cristina met with the sugar ethanol industry Tuesday on the package. Brazil let a non-tariff quota for 750 million liters (198 million gallons) ethanol imports expire at the end of August, making imports subject to a 20% tariff. And the country's sugar industry said that they want the Brazilian government to seek additional access for Brazilian sugar into the U.S. market. While some may reject that possibility, recall that USDA wants to allow more sugar into the U.S. under the Fiscal Year 2020 tariff rate quota on sugar imports, and they have extended the period for the products enter by 30 days.
| Rural Advocate News | Friday September 11, 2020 |
Friday Watch List Markets USDA's weekly report of export sales will be released at 7:30 a.m. Friday, along with the U.S. Labor Department's consumer price index. The big events of the day for traders are USDA's WASDE and Crop Production reports, due out at 11 a.m. CDT. At 1 p.m. CDT, the U.S. Treasury Department releases the federal budget for August. Weather Light rain and drizzle are in store for the central Plains and western Midwest Friday. Dry conditions will be in place elsewhere. Temperatures will be cool for the season in central and south central areas and above to much-above normal northwest and southeast.
| Rural Advocate News | Thursday September 10, 2020 |
Report: Trump to Deny RFS Gap Waivers Ethanol and corn producers applaud a report by Reuters that President Donald Trump will deny pending retroactive biofuel waivers. The National Corn Growers Association, Renewable Fuels Association, National Farmers Union and American Coalition for Ethanol jointly welcomed the news report. A joint statement reads, “it is our hope that EPA swiftly acts upon the President’s directive and closes the door once and for all on the refiners’ brazen attempt to rewrite history.” The report comes the same week an effort led by Growth Energy, including more than 90 stakeholders, urged the president to deny the so-called gap waivers. Ethanol industry supporters say the gap year waivers are intended to circumvent a Tenth Circuit Court's decision against three granted waivers. Meanwhile, the groups denounced CVR Refining and HollyFrontier Corporation’s last-minute request, filed on September 4, for the U.S. Supreme Court to review the Tenth Circuit Court’s ruling. NCGA, RFA, NFU and ACE were the four petitioners in the successful Tenth Circuit Court case. ************************************************************************************ Biden, Trump Respond to AFBF Questionnaire A new questionnaire reveals the priorities for rural America of President Donald Trump and former Vice President Joe Biden. The American Farm Bureau Federation asked the Republican and Democratic candidates to respond with their stances on several topics directly affecting rural America. President Trump’s responses focus largely on his first-term accomplishments. He pledges a science-based approach to regulation going forward. He commits to addressing the “rural/urban divide” and emphasizes support for voluntary conservation programs. Former Vice President Biden’s responses focus heavily on environmental sustainability and improving prosperity in rural communities. He, too, pledges to rely on experts and scientists when it comes to policies and regulation. He commits to “rebuilding the middle class” and working with farmers to achieve net-zero emissions. The answers are presented as they were received, unedited, to give farmers an unfiltered look at each candidate’s platform. AFBF has invited candidates from both parties to respond to election questionnaires for more than 40 years. The survey is available at FB.org/election2020. ************************************************************************************ USDA Announces Egg Product Inspection Modernization Effort The Department of Agriculture's Food Safety and Inspection Service says it is modernizing egg product inspections. This is the first effort to update the inspection methods since Congress passed the egg Products inspection Act in 1970. FSIS says the Egg Products Inspection Regulations final rule aligns the egg products regulations to be consistent with current requirements in the meat and poultry products inspection regulations. Under the new rule, federally inspected egg product plants are required to develop and implement Hazard Analysis and Critical Control Points systems and Sanitation Standard Operating Procedures. FSIS will continue to test for Salmonella and Listeria in egg products. FSIS requires that plants produce egg products that meet food safety standards and are edible without additional preparation. Under the system, plants will be able to tailor a food safety system that best fits their facility and equipment. In addition, FSIS will be assuming regulatory authority over egg substitutes and freeze-dried egg products, which pose the same risk as egg products and will be inspected in the same manner. ************************************************************************************ Produce Group Says Trade Investigation to Undermine USMCA Not all produce groups are pleased the Trump Administration is taking action regarding fresh produce imports. Last week, U.S. Trade Representative Robert Lighthizer outlined a plan that includes investigations of imports of blueberries and potentially strawberries and bell peppers. The plan also outlines actions that would impact U.S. companies distributing imported produce. The Fresh Produce Association of the Americas says, “This politically motivated action directly undermines the new U.S. Mexico Canada Agreement, positioning the U.S. as an unreliable trading partner.” The association says using the rarely invoked trade law cited would impose costly tariffs on seasonal produce, raise consumer prices, and would launch numerous and unending “tit for tat” trade wars. The Fresh Produce Association of the Americas is a nonprofit trade association headquartered in Arizona that represents over 120 U.S. member companies involved in importing and marketing fresh fruits and vegetables grown in Mexico and distributed across North America and the world. ************************************************************************************ USDA Supports U.S. Seafood Industry Impacted by Retaliatory Tariffs The Department of Agriculture will provide approximately $530 million to support the U.S. seafood industry and fishermen impacted by retaliatory tariffs from foreign governments. Agriculture Secretary Sonny Perdue announced the support Wednesday. Perdue says, "Many nations have not played by the rules for a long time," adding, "President Trump is the first President to stand up to them and send a clear message that the United States will no longer tolerate unfair trade practices." The Seafood Trade Relief Program ensures fishermen and other U.S. producers, according to Perdue, “will not stand alone in facing unjustified retaliatory tariffs while President Trump continues working to solidify better and stronger trade deals around the globe.” The funding will be provided through the Seafood Trade Relief Program and funded through the Commodity Credit Corporation. The Seafood Trade Relief Program funding will support roughly 20 fish and crab species, including flounder, salmon, and tuna. Fishermen can sign-up for relief through the program from September 14, 2020, to December 14, 2020. ************************************************************************************ NCBA, PLC: Time to Delist Grizzly Bears from Endangered Species Act The National Cattlemen’s Beef Association and Public Lands Council say, “it’s time the grizzly bears are delisted,” from the Endangered Species Act. During a Senate Committee on Environment and Public Works hearing Wednesday, lawmakers discussed the Grizzly Bear State Management Act. Introduced last year by Senator Mike Enzi, a Republican from Wyoming, the bill directs the Department of the Interior to re-issue its delisting decision and prohibits further judicial review of this decision. Public Lands Council Executive Director Kaitlynn Glover says, “the Committee heard what ranchers across the West have known for years: grizzly bear populations are flourishing, which means the species no longer needs protection.” Senator Enzi says the authority to manage the species needs to be turned over to the states. In 2017, the Fish and Wildlife Service removed the grizzly bear from the endangered species list, citing a significant increase in bear populations. In September 2018, a federal judge in Montana ruled to put the grizzly bear back on the endangered species list.
| Rural Advocate News | Thursday September 10, 2020 |
Washington Insider: Pandemic Changed Food Market When the coronavirus hit, the food business found itself in a whole new ballgame, the New York Times is reporting this week. “Even the most enthusiastic cooks had to adjust to a new, more complicated relationship with their kitchens," the article said. For the first time in a generation, Americans began spending more money at the supermarket than at places where someone else cooked. Grocers saw eight years of projected sales growth packed into one month. Shopping trends that were in their infancy were turbocharged. The NYT says it is focusing on the “six-month shift” and calls it a “behavioral scientist's dream.” Shoppers began by building bomb-shelter pantries. Then came a nostalgia phase, with bowls of Lucky Charms and boxes of Little Debbies offering throwback comfort. Soon, days were defined by elaborate culinary stunts, sourdough starter and kombucha clubs. Now, NYT thinks that “although kitchen fatigue is setting in for many, a new set of habits have been set.” The report says that quite a few companies agree. “People are moving on to more complex cooking, and we don't see that going away,” said Rodney McMullen, the chairman and chief executive of Kroger — where sales rose 30% at the onset of the pandemic, including big jumps in the pasta aisles, the beer and wine department and baking supplies, and “including a 600% jump in sales of yeast.” He and others in the business say the COVID-driven return to the kitchen could change grocery shopping forever. “This is a pivotal time in our history,” Anna Nagurney, a professor in the Isenberg School of Management at the University of Massachusetts who studies supply chains, said. “Not all of what we've seen will stick, but a lot of it will.” The Times report goes on to list ways the pandemic has already changed the way Americans shop for food. For example, it concludes that “shopping is more efficient now.” Trips are fewer and lists are better. “People now go to the store with purpose,” said John Owen, the associate director for food and retail with Mintel, the market analysis group. “The number of trips went way down, and the size of the basket went way up in April. We have eased back on that, but not by much.” Before the coronavirus, 19% of Americans shopped for food more than three times a week, according to McKinsey & Company. That number had dropped to 10% by June, according to Lizzie Bowman, a marketing director at American Public Media who lives in Minneapolis. She has streamlined her shopping to once a week. “It has made me a better planner and more aware of what I like to buy where,” she said. “I am so much more purposeful about where I choose to shop.” There's more. A year ago, 81% of shoppers surveyed by Gallup said they never turned to the internet for groceries and online shopping accounted for about 3% of all grocery sales. In June online grocery sales in the United States hit $7.2 billion. The race for on line dollars is intense. In a challenge to Amazon Prime, Walmart last week announced a new $98-a-year subscription service that offers same-day delivery on 160,000 items. Instacart is more than doubling its work force and new services are popping up. Curbside pickup, delivery's sibling, has also exploded. Stores are converting parking lots to better handle traffic from shoppers who drive by to pick up orders. Companies including Kroger and Whole Foods Market are opening what are becoming known as “dark stores,'' designed solely for picking up or delivering orders placed online. Also, the Times thinks that many shoppers consider themselves permanent converts to online shopping. Other changes include shifts in consumption patterns — produce sales have been riding high since March and are still up 11% from a year earlier, said Joe Watson, a vice president at the Produce Marketing Association. In May, grocers sold 73% more oranges than during the same month in 2019. Sales in the category that grocers call “natural” were growing before the pandemic but they blew up when it arrived. By mid-March, they were up 78% over the year before, according to the market research firm IRI. And, grocers have found that they can grow with fewer choices. Displays at the end of aisles are more likely now to hold bulk packages of staples, NYT said. And, shoppers are being more economical while interest in house brands has grown. Frozen food is another surprise breakout. Sales initially jumped by 94% in March, according to the American Frozen Food Institute. That initial rush abated but even in August, sales remained up almost 18%. So, we will see. Our food consumption preferences are as varied as our population and are sensitive to many influences. The virus, with its enormous impacts on our way of life will certainly change many basic things, too — even for systems as large and diverse as food. These are trends that are central for producers and should be watched closely as changes appear, Washington Insider believes.
| Rural Advocate News | Thursday September 10, 2020 |
Final Rule For Coronavirus Food Assistance Program 2 (CFAP 2) Is At OMB For Review The coming Coronavirus Food Assistance Program (CFAP) expansion by USDA is closer to be being announced as the final rule was sent to the Office of Management and Budget (OMB) for review on September 4. This rule likely covers what has been touted as CFAP 2 which would address conditions since the April 15 date referenced in the initial CFAP effort that has seen $9.4 billion paid out as of August 31. The program targeted providing some $16 billion in payments using funds from the CARES Act and Commodity Credit Corporation (CCC) borrowing authority. Expectations are the CFAP 2 effort will be announced soon as OMB review of the plan is not expected to take a long time.
| Rural Advocate News | Thursday September 10, 2020 |
Reuters: Trump Orders EPA To Deny Gap-Year RFS Waiver Requests President Donald Trump reportedly has instructed EPA to deny so-called gap-year small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) in a bid to bolster his support in farm country, according to a report from Reuters. The action would take the form of a direction from the White House, the report noted, and comes as Sen. Joni Ernst, R-Iowa, is facing a challenge in her bid for reelection to the US Senate in November. When Trump visited Iowa in August to learn more about the derecho storm impacts, Ernst repeatedly pressed Trump on the SRE issue, extracting a promise that he would talk to EPA on about the situation. EPA was flooded with gap-year SREs in the wake of the 10th Circuit Court of Appeals ruling in January that three SREs issued for the 2016 compliance year were invalid as they did not amount to extensions of prior SREs. That prompted multiple requests for SREs to be filed going back to the 2011 compliance year. Meanwhile, Politico is reporting that the Department of Justice has decided not to appeal the 10th Circuit Court ruling to the U.S. Supreme Court, another sign the administration has opted to side with biofuel backers on the issue.
| Rural Advocate News | Wednesday September 9, 2020 |
Ethanol Industry Again Urging Trump to Reject Gap Year Waivers Biofuels advocates Tuesday urged President Donald Trump to “stand up against an urgent threat facing rural communities” and reject oil industry exemptions from the Renewable Fuel Standard. In a letter, 93 farm organizations and biofuel industry stakeholders told the President, “We’ve seen too many plants shut down, too many jobs lost, and too many farmers deprived of vital markets.” The letter was offered in response to the Environmental Protection Agency’s ongoing consideration of nearly 100 refinery exemptions, including 67 retroactive ‘gap-year’ petitions. Growth Energy CEO Emily Skor says the so-called gap-year exemptions, “represent a clear attempt to sidestep the law at the expense of rural communities.” The farm organizations call the waivers a brazen attempt to circumvent limits set by the United States 10th Circuit Court of Appeals for which determined that EPA "abused its discretion" over the RFS by granting similar exemptions. This is just the latest in an ongoing effort by the industry to end the waivers. ************************************************************************************ July Beef and Pork Exports Rebound, but Still Below Year-Ago July exports of U.S. beef rebounded from recent lows but remained below 2019 levels, according to the U.S. Meat Export Federation. U.S. pork exports, which are on a record pace in 2020, were also down from a year ago in July but increased compared to June. USMEF President and CEO Dan Halstrom says, “With production returning to near-normal levels, we definitely saw an improvement in beef exports.” July beef exports totaled 107,298 metric tons, up 36 percent from June but still nine percent below last year. Export value was $647.8 million, the highest since March but down ten percent from a year ago. July pork exports totaled 222,035 metric tons, down five percent from a year ago, while export value fell 12 percent to $548.3 million. For January through July, pork exports remained 20 percent ahead of last year's record pace in volume at and 22 percent higher in value. ************************************************************************************ Wheat Growers Applaud Relief Request for U.S. Wheat Producers Last week, a group of lawmakers requested additional coronavirus-related aid for wheat farmers, a move applauded by the National Association of Wheat Growers. A group of 26 lawmakers signed a letter last week to Agriculture Secretary Sonny Perdue seeking the funds. Specifically, the lawmakers asked Perdue to use existing funds through the CARES Act to begin covering 2020 crop losses and include all classes of wheat. NAWG President Dave Milligan applauded the bipartisan group of lawmakers who signed the letter, “demonstrating the significant price drops experienced this year and the need for 2020 losses to be covered." The Coronavirus Food Assistance Program provides assistance for hard red spring and durum wheat farmers, but it does not include other classes of wheat, which represent about 70 percent of 2019 production. CFAP also only provides assistance on 2019 grain that was considered to be at risk in the first quarter of the year. CARES Act funds have not yet been made available for 2020 crop losses. ************************************************************************************ NASDA Adopts New Diversity and Inclusion Policy The National Association of State Departments of Agriculture last week adopted a new diversity and inclusion policy during the 2020 NASDA Annual Meeting. According to the organization, the new policy formally incorporates NASDA's commitment to racial justice into its policymaking framework. NASDA CEO Barb Glenn says, “We believe that the future of agriculture is best served when all of those in the agriculture community are empowered regardless of race, gender, sexual orientation and/or religious creed." NASDA's policy asserts that diversity and inclusion are fundamental principles of a sustainable agricultural community and necessary to advance the industry. The policy also recommends supporting programs consistent with the new guiding principle and encourages all levels of government to do the same. NASDA recently formed a five-year partnership with the organization Minorities in Agriculture, Natural Resources and Related Sciences and the NASDA Foundation. The partnership will serve to increase racial diversity in agricultural leadership, provide a deep dive into agriculture policy for students, and advise diversity training for NASDA members and staff. ************************************************************************************ Wildfires Threaten Western States The Public Lands Council Tuesday reported 76 large active wildfires in the United States, impacting roughly 2.2 million acres. Of those, 22 are in California and 11 in Montana. The U.S. Drought Monitor shows much of the West and High Plains regions in classified drought. Many areas of the West were included in a red flag warning, which advises citizens to avoid activities that may spark a fire. In Montana, Governor Steve Bullock last week issued an executive order declaring a state of fire emergency due to extremely hazardous wildland fire conditions throughout the state. The declaration allows Bullock to mobilize additional state resources and to combat wildfires. The emergency order also suspends hours of service regulations for commercial vehicle drivers while providing support to fire suppression activities. Additionally, the emergency order suspends the brand inspection permit fee requirement and the brand inspection requirement before removal, and allows the Montana Department of Livestock to issue transportation permits by phone when necessary to cope with the emergency. ************************************************************************************ China Exporting Duck Blood to U.S. Without Inspection Records The Food Safety and Inspection Service last week issued a Public Health alert over imported duck blood from China that doesn’t include inspection information. Specifically, the investigation focuses on vacuum-packed packages containing “Cooked Duck Blood Curds.” The product does not identify an eligible establishment number on its packaging and was not presented to FSIS for import re-inspection. FSIS has not received an official inspection certificate issued by China to certify the product as eligible. Therefore, the product is ineligible to import into the U.S., making it unfit for human consumption. Retailers who have purchased the product are urged not to sell it. Consumers who purchased the product should not consume it and properly discard it. Consumers are asked to double bag the product when discarding it to reduce the possibility of animals accessing the product because USDA cannot confirm whether the cooked duck blood curds were properly heated to control pathogens of concern to domestic livestock.
| Rural Advocate News | Wednesday September 9, 2020 |
Washington Insider: China Trade Fights and More Bloomberg is reporting this week that the President is staking out a much more punitive position on future trade relationships with China. He is threatening to “punish any American company that creates jobs overseas.” “We'll manufacture our critical manufacturing supplies in the United States, we'll create 'made in America' tax credits and bring our jobs back to the United States and we'll impose tariffs on companies that desert America to create jobs in China and other countries,” President Trump said on Monday. “If they can't do it here, then let them pay a big tax to build it someplace else and send it into our country,” he said of US corporations. “We'll prohibit federal contracts from companies that outsource to China and we'll hold China accountable for allowing the virus to spread around the world.” The report says that the president has recently emphasized the idea of “decoupling” the US economy from China—as US China hawks have long dreamed. “Whether it's decoupling or putting massive tariffs on China which I've been doing already,” he said. “We're going to end our reliance on China because we can't rely on China and I don't want them building a military like they're building right now and they're using our money to build it.” Despite the president's comments, bilateral trade is one key area of US-China relations that hasn't worsened recently, Bloomberg says. Both nations are seen as reaffirming their commitment to a phase-one trade deal that stopped tit-for-tat tariff increases. China's trade surplus with the US in August was $34.2 billion, the highest since November 2018. The president has increasingly sought to intensify the election-year trade issues but didn't say when he would implement the new policies. He framed the moves as part of a second-term agenda. Overall, Bloomberg says that this year could become the most challenging period for the international trading system in modern history. It cites Edward Allen, a senior fellow at the Council on Foreign Relations, who thinks the next three months will be “pivotal” for the state of global trade. With protectionism on the rise in ways similar to the lead-up to the Great Depression, “the echoes of the 1930s are pretty clear,” he said. Bloomberg focuses on several key political and economic events affecting trade, beginning with the WTO review of whether and how much the EU can retaliate against the US for its subsidies to Boeing Co. The EU has requested authorization for levies on $11.2 billion of US products, but trade experts say a lower figure is likely -- perhaps below the WTO's $7.5 billion award to the US in its parallel dispute against EU subsidies to Airbus SE. There are hopes that a ruling would spur the US to restart negotiations to settle the 15-year-old dispute. A settlement would be a huge relief to European exporters, who are currently facing stiff US retaliatory tariffs. However, Bloomberg thinks that the most important trade development this year will be the US presidential election. If the president is re-elected in November, it's likely the US will increase tariffs on foreign trade partners as a means to reshore and diversify America's supply chains, Bloomberg says. This could mean “more of the same--a roller coaster ride of volatility, threats, and tariffs,” said William Reinsch, a trade official in the Clinton administration and senior adviser at the Center for Strategic and International Studies. If Democrat Joe Biden wins, “he has already said, in effect, that trade is going to be on the back burner while he deals with the pandemic and the economy,” Bloomberg thinks. In the midst of all this, members of the WTO will attempt to select a new leader to help revive the “neutered” referee for international commerce. The organization is currently operating without a chief following Roberto Azevedo's early departure on Aug. 31. Bloomberg thinks the WTO's dispute-settlement function is crippled, its negotiating arm is essentially frozen and the organization is beginning to buckle beneath the pressure of the US-China battle for trade supremacy. It believes that US and European policy makers also are sleepwalking toward a “damaging trade conflict over foreign taxes on US technology companies like Facebook Inc. and Alphabet Inc.'s Google, Bloomberg says. Though nations have sought to resolve the matter at the Paris-based Organization for Economic Cooperation and Development, the US withdrew from those talks in June. If an agreement is not forthcoming this year America's top trade official has pledged to impose tariffs on nearly a dozen nations in 2021. Also, new and significant trade barriers between the UK and EU are likely by year-end, Bloomberg thinks as the UK proceeds to leave the EU's single market and customs union -- meaning British exporters must endure new customs paperwork that will create border queues and persistent delays. This will happen regardless of whether Britain can come to an agreement with the European trading bloc over the future of their economic relationship. If the UK fails to negotiate a tariff- and quota-free accord with the EU, British exports will become subject to WTO negotiated terms that bring costs, controls and red tape that haven't existed for decades. So, we will see. Overseas markets are very important for US agriculture and for other industries that are globally competitive and who have outgrown domestic markets—and they tend to be supported by those who believe that trade agreements tend to lead to stronger global relationships than the past reliance on more mercantilist objectives achieved. Now, Bloomberg and others think that the global trade system risks drifting even further into much more confrontational arrangements, developments and fights producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday September 9, 2020 |
Cattle Group Presses USDA Over Mexican Beef The US Cattlemen's Association (USCA) is urging USDA's Animal and Plant Health Inspection Service (APHIS) and Food Safety and Inspection Service (FSIS) to enhance inspections of beef imported from Mexico, citing concerns over the potential use of the growth promoter clenbuterol. The group pointed to reports of an outbreak of illness affecting 54 people across Mexico linked to meat contaminated with clenbuterol. It also pointed to a 2019 study that found clenbuterol residues in excess of Codex Alimentarius maximum limits in 52 of 106 samples of beef muscle and liver purchased from vendors in the city of Cuernavaca. “USCA strongly recommends increased inspection protocols of all beef and cattle imported from Mexico until such a time when confidence can be restored in Mexican beef product,” USCA President Brooke Miller wrote in the September 8 letter to APHIS and FSIS administrators. “We ask that APHIS and FSIS seriously evaluate the public health risks associated with importing beef and meat from Mexico, including conducting an equivalence verification to ensure that Mexico is still maintaining a regulatory food safety inspection system that is on par with the United States'.”
| Rural Advocate News | Wednesday September 9, 2020 |
USTR Considers Ban on Cotton Products from China's Xinjiang Region This week the Office of the US Trade Representative (USTR) could ban the import of products made with cotton from the Chinese region of Xinjiang, in response to the abuse of minorities living there. US Customs and Border Protection (CBP) would have to issue an order implementing the ban. The issue could affect tens of billions of dollars of US textile and clothing imports that include cotton, yarn or fabric from the Xinjiang Uygur Autonomous Region. A ban would cut deeply into apparel supply chains, and there is the potential that any US action could lead China to retaliate – possibly targeting US cotton producers.
| Rural Advocate News | Wednesday September 9, 2020 |
Wednesday Watch List Markets There are no official reports due Wednesday, but traders will continue to monitor the latest weather forecasts and watch for more export sales announcements. Several private crop estimates are being considered ahead of Friday's WASDE report. Weather Wednesday features a large area of rain from the Texas Rio Grande valley to the Great Lakes. The rain will be favorable for soil moisture ahead of winter wheat planting and will offer drought easing in the western Midwest. Meanwhile, snow will cover much of the western Plains and Rockies. Other crop areas will be drier with favorable harvest conditions in the Delta and Southeast. Some northern crops will have their season come to an end due to freezing conditions.
| Rural Advocate News | Tuesday September 8, 2020 |
House Ag Chair Unhappy with Brazil Regarding U.S. Ethanol The Brazilian government’s tariff rate quota that placed a 20 percent duty on American ethanol imports exceeding 198 million gallons ended on August 31. Government officials there have yet to announce plans for the future of the U.S.-Brazil trade relationship. If the government doesn’t take further actions, all U.S. ethanol coming into Brazil faces a 20 percent tariff. The Chair of the House Ag Committee, Collin Peterson, is not happy about the situation. “American corn and ethanol producers are struggling to access domestic markets because of the coronavirus and the Environmental Protection Agency’s reckless implementation of the Renewable Fuels Standard,” Peterson says. “Brazil’s move to increase tariffs on American ethanol is more bad news for producers.” He wants the administration to continue working with Brazilian officials to restore the duty-free access that was in place from 2012 to 2017. “Tariff wars have consequences, and our biofuels producers are seeing that firsthand,” he adds. Brazil has been a major buyer of U.S. ethanol, importing 332 million gallons worth $493 million in 2019. Peterson and 19 other members of Congress recently sent a letter to U.S. Trade Representative Robert Lighthizer asking him to pressure Brazil’s leaders to restore zero-tariff ethanol trade between America and Brazil. ********************************************************************************************** WTO Says Ag Trade Faring “Better” During COVID; Producers Feeling Pressure A new report from the World Trade Organization says agricultural trade has performed “better” than other economic sectors during COVID-19. However, Western Producer says the report notes that farmers and ranchers are still feeling pressure from lower food prices. “Overall merchandise trade fell sharply in the first half of this year, but agricultural and food exports increased by 2.5 percent during the first quarter of 2020 when compared to 2019,” the report says. The news is not all good as the WTO points out that the crisis has put downward pressure on food prices, and therefore on producer revenues. At the same time, the number of hungry people is continuing to climb around the world. “Initial measures focused on guaranteeing the immediate availability of food have been followed by a second phase of policies seeking to mend broken supply chains and to help agricultural producers cope with the situation,” the report continues. The impact on trade varied in different regions of the world. Asia’s agricultural exports declined in March, while Europe and North America saw declines in April. South America saw significant increases because of bigger demand in Asia. The WTO says food prices will remain at low levels, putting more pressure on producer revenues. ********************************************************************************************** NCGA Working to Move the Ethanol Industry Forward The National Corn Growers Association is working on building out the infrastructure needed for future mid-level blends of ethanol. For three years, the NCGA and state partners have been working with Wayne Fueling Systems to make and sell fuel pumps certified to deliver fuels containing up to 25 percent ethanol. This partnership helps NCGA support the sale of more than 50,000 new fuel pumps across the country, building out the infrastructure needed to support future mid-level blends of ethanol. “This lays the groundwork for growing ethanol demand and moving the industry forward,” says NCGA Vice President of Market Development Jim Bauman. “Corn farmer support of NCGA’s multi-year fuel pump infrastructure program supports the introduction of higher-octane fuels delivered by low-carbon, affordable, corn-based ethanol.” NCGA also partnered with the Renewable Fuels Association to help assist retailers in applying for the USDA’s Higher Blends Infrastructure Incentive Program. The program included $86 million to expand the availability of higher ethanol blends like E15 and E85. Corn farmer support helped deliver program awareness and technical assistance for applications representing more than 1,100 fuel dispensers in 21 states with 222 locations that combine to sell more than 250 million gallons of gasoline annually. ************************************************************************************ CFAP Part Two Announcement Coming This Week As recently as September 1, Ag Secretary Sonny Perdue said USDA was finishing up writing the rules for the second round of the Coronavirus Food Assistance Program. Late last week at a stop in Iowa, the secretary said the rules have been written and they’ll be announced this week. The Bismarck Tribune says the first $16 billion in funding during the first round of the program was geared to the first quarter of 2020. The idea was to just get the aid out the door as quickly as possible to whoever needed it. Round two of the program will factor in more producer feedback to make it a program that works best for the people who truly need it. Farm Journal’s Ag Web Dot Com says payments in the second round will compensate producers for any losses they had from April 15 through the end of 2020. The deadline for applying during the first round of CFAP is this Friday, September 11. He says round two payments will go to the same commodities they did in the first round. There won’t be any money for ethanol producers and other agricultural commodities seeking aid because of COVID-19. Perdue says he doesn’t have the necessary authority from Congress to make those particular payments. ********************************************************************************************** USGC Working on Expanding Ethanol Demand in Asia The U.S. Grains Council says a boom in demand for hand sanitizer in South Korea since COVID-19 began is likely not a surprise. However, the related jump in U.S. ethanol imports into the country to meet that need might be more of a surprise. The rising demand is opening doors for the U.S. Grains Council to build new partnerships to expand demand potential for ethanol across Asia, both for industrial uses and fuel. The USGC Director in South Korea says COVID-19 has altered ethanol markets around the world. The demand for U.S. ethanol in South Korea for industrial use has increased significantly due to the high demand for sanitizers in South Korea and throughout the region. Despite the short-term impact, fuel ethanol demand remains viable for expansion in the future, and USGC says the council is working to increase market access in individual countries across the Asian region. South Korea imported 58.9 million gallons of U.S. ethanol for industrial use during the first six months of 2020, equivalent to 20.9 million bushels of corn. That’s up 53 percent year-on-year. The total constitutes 55 percent market share. USGC recently met with KC&A, the largest ethanol importer and distributor in Asia to discuss the obstacles and opportunities for ethanol expansion in the region. ********************************************************************************************** National Sorghum Producers and BASF Partner to Offer Scholarship Opportunity The National Sorghum Foundation and BASF announced a joint scholarship offer for the 2020-2021 academic year. “The National Sorghum Foundation is excited to continue to partner with BASF in supporting students who excel in academics, leadership, and service to their communities and universities,” says NSF Chairman Larry Lambright. “We look forward to providing deserving students with the financial assistance necessary to continue their education and success.” Two $2,500 scholarships will be awarded to deserving students pursuing an undergraduate or graduate degree in an agriculturally-related curriculum. Undergraduate applicants must be entering at least their second year of study during the 2020-2021 academic year. Applicants must also have a parent or grandparent who is a member of the National Sorghum Producers. Potential applicants can find more information at SorghumGrowers.com/Foundation-Scholarships.
| Rural Advocate News | Tuesday September 8, 2020 |
Washington Insider: Jobs Report and Spending Deal Federal Reserve Chairman Jerome Powell sees the U.S. unemployment data for August as positive but cautions that the economy's recovery from the pandemic has a long road ahead. “The recovery is continuing; we do think it will get harder from here,” Powell said in a Bloomberg report. Friday's jobs report was “a good one,” he said, adding that “to get us back to full employment, we're going to have to get the disease under control.” “There may be a modest slowing in the pace of improvement, but improvement goes on. And in the labor market, I would say it goes on at least at the pace we expected.” Powell spoke following a Commerce Department report that said the US labor market extended its rebound for a fourth month in August, with the unemployment rate falling by almost 2 percentage points, to 8.4%. The much better-than-expected improvement in the jobless rate spanned demographic groups, while the payroll gains of 1.37 million were broad-based across industries. Other recent economic data have been mixed, however. While a measure of manufacturing expanded in August at its fastest pace since late 2018, consumer spending--the heart of the U.S. economy--decelerated in July, Bloomberg noted. Powell suggested that more support for the unemployed and small businesses may be necessary to help Americans hard hit by the coronavirus crisis. Lawmakers remain deadlocked on another aid package, with Democrats pushing for a much bigger program than Republicans and the White House are willing to agree to. There was also some welcome news from the administration, the Washington Post reported. It said that Treasury Secretary Steven Mnuchin said Sunday that he and House Speaker Nancy Pelosi D, Calif., have agreed to work on a short-term spending bill to avert a government shutdown Oct. 1, weeks before the election. “The speaker and I have agreed we don't want to see a government shutdown,” Mnuchin said. Mnuchin said he expects a “continuing resolution” to extend government funding into December— although the date has not yet been agreed on. Without action by Congress, agency funding would expire at midnight Sept. 30, and the government would begin to shut down. Mnuchin's comments suggest that the White House is not girding for a clash over this spending deadline, though White House officials have in the past tried to negotiate deals with Democrats in Congress only to have President Trump announce that he is opposed at the last moment. A spending bill into December would allow lawmakers to return to the Capitol for a “lame-duck” session following the election and complete spending legislation for the 2021 fiscal year that starts Oct. 1. Short-term spending bills have become routine for Congress in recent years as lawmakers have failed to reach “on time” agreement on the 12 annual must-pass spending bills that fund the government agencies. This so-called “discretionary spending” accounts for about one-third of the overall federal budget, while programs such as Medicare, Medicaid and Social Security that continue automatically from year to year make up the rest. The House leadership confirmed earlier this past week that Speaker Pelosi supports passage of a so-called “clean CR,” meaning a government funding bill without extraneous legislation attached. “The good news is we've agreed on a clean CR, and I hope by the end of the week, we can begin moving forward with that, because that's important to the American people,” Mnuchin said. “The most important thing is to make sure at the end of the month, we don't shut down the government and we get something past the election,” he said. At the same time, Mnuchin repeated his view that more stimulus is needed for the economy. The Washington Post noted that talks on additional coronavirus economic relief legislation broke down in August and have remained stalled. Lawmakers will return to the Capitol today and leaders in both parties say they hope to reach agreement on a new coronavirus relief bill. But they remain far apart and it's unclear whether a deal will be possible. Democrats are unwilling to agree to legislation that spends less than $2 trillion, while Republicans say that figure is too high. Senate GOP leaders have been hoping to try advancing a slimmed-down bill costing about $500 billion, but they've struggled to reach agreement even on that. The latest hang-up involves a push by Sen. Ted Cruz R-Texas, for a school-choice provision opposed by some fellow Republicans. Sen. John Barrasso R-Wyo., a member of the Senate GOP leadership, said Sunday that Senate Republicans anticipate opposition from Pelosi and Senate Minority Leader Charles E. Schumer D-N.Y., to their emerging bill. “We have a targeted package that the Republicans want to put forward to help people get back to work,” Barrasso said on Sunday.” “There's paycheck protection money in there for our small businesses to continue. I expect Chuck Schumer and Nancy Pelosi to block that,” Barrasso said. So, we will see. The general mood in Washington is as toxic as ever, and may even be worsening, observers say. As always, the spending and antivirus proposals should be watched closely by producers as they intensify, Washington Insider believes.
| Rural Advocate News | Tuesday September 8, 2020 |
EPA's Wheeler Promises More Regulatory Easing If Trump Reelected President Trump would continue his efforts to ease regulatory burdens on businesses if re-elected for a second term, while also working to eliminate slowdowns that have delayed Superfund projects, Environmental Protection Agency (EPA) administrator Andrew Wheeler said. In an interview with the Wall Street Journal, Wheeler said a second term for the Trump administration would allow his agency to press forward with measures such as including a cost-benefit analysis of any new regulations. He would also push for expanded “science transparency,” requiring the scientific justification behind new regulations to be disclosed. Wheeler expanded on his priorities for a possible second Trump term Thursday (September 3) at the Nixon presidential library in Yorba Linda, Calif. The event commemorated the 50th anniversary of President Nixon establishing EPA in 1970. “The EPA's mission has been straight forward since its founding: protect human health and the environment,” Wheeler said in remarks at the event.
| Rural Advocate News | Tuesday September 8, 2020 |
Peterson Urges Deal on Brazil Ethanol Duties House Agriculture Committee Chairman Collin Peterson, D-Minn., is urging the Trump administration to quickly reach a deal with Brazil to scrap its duties on U.S. ethanol. Tariffs on U.S. ethanol to Brazil stand at 20% after an earlier tariff-rate quota (TRQ) arrangement expired August 31. “Brazil's move to increase tariffs on American ethanol is more bad news for our producers. The Trump Administration should continue working with Brazilian officials to restore the duty-free access that was in place from 2012 to 2017,” Peterson said in a Friday (September 4) statement. “Tariff wars have consequences, and our biofuels producers are seeing that firsthand," Peterson remarked of the lack of an agreement to head off the higher duties.
| Rural Advocate News | Tuesday September 8, 2020 |
Tuesday Watch List Markets Early Tuesday, traders are back from the three-day weekend, checking the latest weather forecasts and waiting to see if USDA has an export sale announcement at 8 a.m. CDT. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Weather Tuesday features a broad swath of rain from the western Plains to the Great Lakes along with some snow in the High Plains. Rainfall will range from light to moderate with locally heavy amounts. Drought areas of the western Corn Belt will see the best rain since June. The rain will improve soil moisture but arrives too late to add to corn and soybean yields. Conditions will be very cool north with some freeze potential through Wednesday. Southern areas have very warm to hot conditions in store; favorable for early row crop harvest but further drying out pastures and livestock water in the far Southern Plains.
| Rural Advocate News | Friday September 4, 2020 |
Survey Shows Farmers Strongly Support President Trump A new Farm Futures poll shows farmers significantly plan to support President Donald Trump in the November election. The poll asked the question, “If the presidential election was held today, would you vote for President Trump?” Just over 1,000 producers responded, with 75 percent saying yes. In 2018, 60 percent said yes to the same question, following the start of the U.S.-China trade war. Meanwhile, 66 percent of farmers said yes to the same question in 2019. In the most recent Farm Futures survey, Trump received high “grades” from farmers on his handling of agriculture, domestic issues and foreign policy. In 2017, nearly 50 percent of farmers gave him either an A or B grade on his handling of agriculture and 44.5 percent on foreign policy. In 2018, his handling of agriculture slipped to 47.1 percent. In Farm Futures’ current survey, Trump received a score of 67 percent as an A or B grade on his handling of agriculture, and 63 percent on foreign policy. ************************************************************************************ Another Private Yield Forecast Predicts Record Crop Another private crop forecast predicts a record corn harvest for 2020. Main Street Data forecast the 2020 national corn yield at 178.1 bushels per acre for corn. Despite setbacks from storms and a lack of rain, the forecast still surpasses the last national yield record, set in 2017 at 176.6 bushels per acre. However, Iowa corn yield was reduced further, thanks to derecho damage and a lack of rain. With Iowa and neighboring states reeling from the August 10 derecho, a lack of rain is now worsening yield forecasts for corn. Main Street forecasts Iowa corn loss at 185 million bushels. This puts Iowa's final yield forecast at 195.7 bushels per acre, compared to the Iowa record of 203 bushels per acre. With no derecho damage and good soil moisture, Indiana forecasts for both corn and beans may hit records, conversely, showing how yield can vary widely between states. ************************************************************************************ Roberts, Klobuchar Lead Request for Wheat Grower Assistance A group of farm-state Senators seeks CARES Act funds for wheat growers to address price impacts from COVID-19. Led by Amy Klobuchar, a Minnesota Democrat, and Pat Roberts, a Kansas Republican, the Senators sent the request to Agriculture Secretary Sonny Perdue this week. For U.S. wheat farmers, the Senators write," COVID-19 and other factors outside their control continue to depress the price of wheat." The lawmakers say the Coronavirus Food Assistance Program is providing critical assistance to many producers impacted by COVID-19, including at-risk 2019 crop losses for hard red spring and durum wheat. While this assistance remains important to those producers, these classes of wheat represent approximately 30 percent of 2019 production, leaving the majority of wheat farmers without access to assistance through the CFAP program. The Senators cite the August WASDE that projects world ending stocks at a record of 316.8 million tons, saying record world ending stocks, caused in part by the impacts of COVID-19, are expected to significantly depress wheat prices. ************************************************************************************ AFBF: Investigation is Positive Step Towards Fixing Trade Imbalances The American Farm Bureau Federation calls the Trump administration investigation to remedy damages to U.S. produce farmers a positive step. The Department of Agriculture and U.S. Trade Representative’s office this week announced a plan to investigate and help produce farmers harmed by increased imports from other countries. USTR is requesting the International Trade Commission focus on blueberries. Imports of fresh fruits and vegetables have increased dramatically over the past 25 years, driving down prices for domestically grown produce. American Farm Bureau Federation President Zippy Duvall testified about the concerns of produce farmers at a USTR hearing in August. Duvall says, “We appreciate the work that has been done in recent trade deals to level the playing field for America’s farmers and ranchers, but this investigation demonstrates there are still imbalances that must be addressed.” As part of the plan, USDA will conduct targeted outreach to produce farmers to maximize the use of existing USDA programs. USDA says it will also develop a market promotion strategy for domestically produced produce. ************************************************************************************ Ethanol Production Leveling, Down 13% From Pre-COVID Levels Recent federal data analyzed by the Renewable Fuels Association for the week ending August 28, ethanol production eased one percent. Production remained nine percent below the same week in 2019 due to the continuing effects of the COVID-19 pandemic. The four-week average ethanol production rate declined 0.2 percent, equivalent to an annualized rate of 14.16 billion gallons. Ethanol stocks grew 2.3 percent, which was 12.3 percent below year-ago volumes. Inventories increased across all regions except the Gulf Coast. The volume of gasoline supplied to the U.S. market, a measure of implied demand, contracted by 4.1 percent. Gasoline demand remained 7.2 percent lower than a year ago. Meanwhile, this week, GasBuddy reports Hurricane Laura prompted a massive drop in crude oil and gasoline inventories. That news comes as GasBuddy says Labor Day Weekend gas prices are at the lowest levels since 2004. GasBuddy predicts a national average of $2.19 per gallon, down nearly 37 cents from last year and the lowest priced Labor Day since 2004’s $1.82 per gallon average. ************************************************************************************ USDA Designates 18 Iowa Counties as Primary Natural Disaster Areas The Department of Agriculture Thursday designated 18 Iowa counties as primary natural disaster areas. The designation enables producers who suffered losses from the August derecho to be eligible for emergency loans. Additionally, Agriculture Secretary Sonny Perdue reminded producers about the suite of disaster assistance programs available through USDA, including program flexibilities and a special signup through the Environmental Quality Incentives Program. Secretary Perdue visited Iowa Thursday to assess damages in the state. The natural disaster designations allow the Farm Service Agency to extend emergency credit to producers recovering from natural disasters. Emergency loans can be used to meet various recovery needs, including replacing essential items such as equipment or livestock, reorganization of a farming operation, or the refinancing of certain debts. Meanwhile, to assistant other states impacted by the Derecho, the FSA has streamlined the environmental compliance review process for the Emergency Conservation Program, Emergency Forest Restoration Program, Emergency Loan Program, Farm Storage Facility Program, and Tree Assistance Program.
| Rural Advocate News | Friday September 4, 2020 |
Washington Insider: Growing Fiscal and Monetary Fights Every day now, it seems there are new examples of the increasing political toxicity in Washington and a good bit of that angst concerns the Fed, even as a nominee for the Board of Governors continues to draw strong pushback. And, enduring concerns about debt levels increasingly shadow efforts to offset the impacts of the coronavirus. This week, Bloomberg is reporting that a group of more than 100 prominent economists--including seven Nobel Prize laureates--signed a new open letter to U.S. senators urging them to reject President Donald Trump's nomination of Judy Shelton to the Federal Reserve's Board of Governors. The new letter is nearly identical to one published in August by former Federal Reserve officials and staffers, a letter that now has 70 signatories, including four former regional Fed presidents and a former Fed governor. Those writers argue that Shelton's views on monetary policy and economics are “so extreme and ill-considered as to be an unnecessary distraction” from the tasks facing the US central bank as it deals with fallout from the coronavirus pandemic. The new letter's signatories include seven winners of the Nobel Memorial Prize in Economic Sciences, Bloomberg says. Shelton's nomination was voted out of committee on a party-line vote in July and she now awaits approval by the full Senate--but no vote has yet been scheduled for her or fellow nominee Christopher Waller, research director at the St. Louis Fed. Shelton, an informal adviser to the President's 2016 campaign, has drawn significant criticism for policy views many consider well outside the mainstream--including a history of admiration for the gold standard--and for being a political loyalist who might bend to Trump's will. Still, she appeared to abandon her advocacy for ultra-tight monetary policy when she emerged as a Fed candidate, publicly aligning herself with the President's calls for lower interest rates—and now insists that “no one will tell her what to do.” In the meantime, The Hill reported this week that negotiations for additional virus relief continue amid reports from the nonpartisan Congressional Budget Office that emphasize an increasingly gloomy outlook for large deficits. For example, CBO says the deficit for fiscal 2020 will more than double the previous high--$1.4 trillion in 2009 during the height of the Great Recession. Overall, the debt is on track to surpass 100% of GDP next year and break its World War II record by 2023, CBO says. Republican leaders say they aren't firmly opposed to another relief measure, but they're harshly critical of the one put forth by Speaker Nancy Pelosi, D-Calif., so the Senate leadership is working to advance a “skinny” $500 billion relief bill. A vote on that measure could come as early as next week, posing a test for what level of support Senate Republicans can muster in their own party for a bill that's less than half their initial offer. Those efforts are separate from stalled negotiations between Pelosi and Senate Minority Leader Charles Schumer, D-N.Y., on one side and Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows on the other. Meadows, in particular, has put the fiscal issue front and center. As a congressman and cofounder of the conservative Freedom Caucus, Meadows frequently railed against bipartisan spending deals because of the hit to the deficit. Mnuchin, meanwhile, is striking a slightly more optimistic tone, saying in congressional testimony Tuesday that President Trump agreed that some level of fiscal aid was still necessary. “Let me say I very much agree with you and those other experts that more fiscal response is needed. The president and I want to move forward with more fiscal response,” he said. While Democrats have come down from $3.4 trillion to $2.2 trillion and Republicans have come up to $1.3 trillion, they remain bitterly divided over hundreds of billions of dollars in proposed aid to state and local government. Fiscal experts, including Federal Reserve Chairman Jerome Powell, say bold stimulus measures are needed to help the country dig its way out of the deepest economic downturn since the Great Depression, and several longtime advocates for fiscal restraint argue that even with the new CBO report, debt concerns should not stand in the way of a strong response to the pandemic. “The warning bells this report contains should not cause a premature end to borrowing, but a commitment to dealing with the debt at the appropriate time,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. Shai Akabas, director of economic policy at the Bipartisan Policy Center, added that borrowing now could help lead to a stronger recovery and ultimately put the country in a better position to address the debt. “The strange reality is that for the nation's long-term budget picture to get better, it must get even worse in the short term,” he said. “Doing so will give our economy the best shot to bounce back, and a good recovery now will help lessen budget shortfalls in coming years.” So, we will see. The fight to control the virus continues to be central for most policy makers, even as the struggle to stimulate the economic recovery gains in importance—and the pre-election maneuvering on the pandemic and the economy overshadows virtually all other policy debates nationwide, fights producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Friday September 4, 2020 |
FMCSA Proposes Pilot Program to Allow Pause in Hours of Service (HOS) The Federal Motor Carrier Safety Administration (FMCSA) is proposing a pilot program to allow temporary regulatory relief from hours-of-service (HOS) requirement that all driving by drivers has to be completed within 14 hours of them starting duty. The Split Duty Period Pilot Program would allow participating drives to pause their 14-hour on-duty period with one off-duty period of at least 30 minutes but no more than 3 hours. The plan would be limited to a those holding a commercial driver's license that meets specified criteria. “This pilot program seeks to gather statistically reliable evidence whether decisions concerning the timing of such flexibility can be aligned with employers', shippers', and receivers' scheduling preferences to optimize productivity while ensuring safety performance at a level equivalent to or greater than what would be achieved absent the regulatory relief,” FMCSA said in a notice in Thursday's (September 3) Federal Register. There would be criteria for both motor carriers and drivers to be able to participate, including the carriers cannot have any enforcement actions within the past three years and cannot have a crash rate above the national average. For drivers, they cannot have had their license suspended, revoked or cancelled and cannot have had a conviction for a violation of state or local motor vehicle traffic control laws in connection with an at-fault crash. The pilot program could last up to three years. There will be a 60-day comment period on the plan.
| Rural Advocate News | Friday September 4, 2020 |
USTR's Doud Upbeat About Phase One Trade Deal Progress US Chief Ag Negotiator Gregg Doud briefed state ag officials on the latest ag trade policy developments at the National Association of State Departments of Agriculture (NASDA) meeting this week. Topics included a new enforcement mechanism for Canadian dairy commitments relative to the USMCA, China's progress towards meeting its commitments under the Phase One trade deal and work towards a new free trade agreement with the UK. On China, Doud reported “great progress in terms of the procedural aspects of [the Phase One] agreement and China's compliance with something like 50 of 56 or 58 procedural requirements,” according to Washington State Agriculture Director Derek Sandison. He said Doud also pointed to an increase in the pace of China's US ag commodity purchases, especially relative to corn and soybeans.
| Rural Advocate News | Friday September 4, 2020 |
Friday Watch List Markets At 7:30 a.m. CDT, the U.S. Labor Department will report on nonfarm payrolls and the unemployment rate for August -- two important indicators of how the economy is handling coronavirus challenges. Traders continue to watch the latest weather forecasts and any trade news that emerges ahead of the three-day weekend. Trading in U.S. futures markets picks up again Monday evening, due to Labor Day. Weather Friday will be dry to finish out the week over almost all crop areas. Rain in central and eastern Texas will be the only precipitation occurrence. Temperatures will be below normal in the Midwest and near to above normal elsewhere. A strong cold front will move from the Canadian Prairies into the north-central U.S. Sunday through Tuesday, offering the best chance for precipitation during the five-day period. The Pacific Ocean 30-day Southern Oscillation Index (SOI) value indicates weak La Nina conditions at plus 10.49.
| Rural Advocate News | Thursday September 3, 2020 |
Aid Increases 2020 Farm Income Projections The Department of Agriculture says farmers will earn more net farm income in 2020 due to federal relief programs. Net cash farm income is forecast to increase $4.9 billion to $115.2 billion. In inflation-adjusted 2020 dollars, net farm income is forecast to increase $18.3 billion, and net cash farm income is forecast to increase $4 billion. If realized, both income measures would be above their historical average across 2000-2019 when adjusted for inflation. However, the increase is not because of better prices or markets. USDA says overall, farm cash receipts are forecast to decrease $12.3 billion to $358.3 billion in 2020. Total animal receipts are expected to decline $14.3 billion, and total crop receipts are forecast to increase $2.0 billion from 2019 levels. USDA says direct government farm payments, including federal aid but not loans and insurance, are forecast at $37.2 billion, a $14.7 billion, or 65.7 percent increase. USDA says the expected increase is due to supplemental and ad hoc disaster assistance for COVID-19 relief. ************************************************************************************ Barchart Releases September Yield Forecast Barchart Tuesday released its September 2020 yield forecast. The September cmdty (commodity) Yield Forecast for end of season yield is forecast at 178.4 bushels per acre for corn and 50.5 for soybeans in the United States. The forecast represents an increase in yield compared to the August report, which forecasted end of season yield for corn 174.8 bushels per acre and end of season yield for soybeans 49.2. The corn estimate comes in above the Pro Farmer Crop Tour estimate last month of 177.5 bushels per acre, and below the Pro Farmer soybean estimate of 52.5. Released on the first Tuesday of each month during the growing season, the Barchart forecast allows users to get insights to guide their business decisions ahead of USDA’s World Agriculture Supply and Demand report. USDA will release the September WASDE next Friday, September 11. Barchart is a provider of market data and services to the global financial, media, and commodity industries. ************************************************************************************ AFBF Market Intel: Cash Rents Stable in 2020 Farmland cash rent rates remain stable in 2020, according to a Market Intel analysis by the American Farm Bureau Federation. The analysis found that during 2020, the average cash rental rates for cropland, irrigated cropland and pastureland were $139 per acre, $216 per acre and $13 per acre, respectively. These rates were mostly in line with prior-year levels. AFBF Chief Economist John Newton says the stability in cash rental rates is likely due to various factors, including Market Facilitation Program payments, ad hoc disaster aid, and increased off-farm income. All of these factors allow farmers to remain competitive when bidding for cash lease agreements. However, Newton writes, “Moving into 2021, the farm economic outlook is uncertain.” Off-farm income is certain to be lower given the high levels of unemployment following COVID-19. However, support through the Coronavirus Food Assistance Program could help farmers remain competitive when bidding for cash rental agreements this fall and into the spring. ************************************************************************************ USTR Announces Plan to Help Produce Farmers The Trump administration this week released a report outlining its plan to address the threat posed by increased foreign imports to American producers of seasonal and perishable fruits and vegetables. The plan follows public hearings held in August, where more than 60 witnesses testified, in addition to over 300 written submissions. USTR will request the International Trade Commission to initiate a safeguard investigation into the extent to which increased imports of blueberries have caused serious injury to domestic blueberry growers. USTR will also pursue senior-level government-to-government discussions with Mexico over the next 90 days to address U.S. industry concerns regarding U.S. imports of Mexican strawberries, bell peppers, and other seasonal and perishable products. Meanwhile, the Department of Agriculture will conduct targeted outreach to producers of seasonal and perishable fruits and vegetables to maximize the use of existing USDA programs. USDA says it will also develop a market promotion strategy for domestically produced produce. ************************************************************************************ Cooler Weather and Freeze Risk Ahead The U.S. weather forecast calls for cooler temperatures next week, and agriculture commodity trade experts say the chance of frost and freeze cannot be ruled out. Jim Bower of Bower Trading in his daily newsletter Wednesday wrote, "Wednesday of next week will bring some frost potential to western Nebraska and immediate neighboring areas as well as a few areas in the eastern Dakotas into Minnesota." The forecast suggests that Tuesday will bring frost and freezes to the eastern Canada Prairies, possibly ending the growing season for some areas and possibly pushing some feeze conditions into the northwestern Plains. For Wednesday, Bower says a few freezes cannot be ruled out for the eastern Dakotas, the northwest half of Minnesota and possibly in a couple of western Nebraska locations, but most other temperatures will be above the damage threshold. However, Bower says, the forecast suggests temperatures will not be cold enough to seriously threaten crops as most crop should be mature enough and not be a major factor. ************************************************************************************ Farm Aid Hosting Virtual Festival September 26 Farm Aid will mark its 35th anniversary with a virtual at-home festival experience. Farm Aid 2020 On the Road, scheduled for Saturday, September 26, will include performances from more than 20 artists. The three-hour event will be streamed at FarmAid.org, on Farm Aid's YouTube channel, AXS TV and Fans.com. Farm Aid's 35th anniversary comes at a time of unprecedented uncertainty. Organizers say, “The impacts of COVID-19 have revealed the fragility and injustice in our food system,” adding that for farmers, “thousands are at risk of going under.” The virtual festival will showcase stories from farmers from across the country who were invited to share why they farm, how they manage to stay resilient, and their vision of the future of agriculture. The goal of the virtual festival is to raise funds for and awareness of the organization and its mission, which it typically does through ticket sales to the annual in-person music and food festival. Farm Aid accepts donations year-round at www.farmaid.org/donate.
| Rural Advocate News | Thursday September 3, 2020 |
Washington Insider: Searching For A New WTO Leader In a development that is mostly under the press radar, Bloomberg is reporting that a campaign to lead the World Trade Organization during the most turbulent period of its 25-year existence is now under way. The contest is playing out against the backdrop of a pandemic, a worldwide recession, the U.S.-China battle for trade supremacy and the American presidential election. However, the development “also could offer an opportunity for the U.S., the European Union and other nations to reshape the organization. The Geneva-based WTO's mission of economic integration is under threat from protectionist policies around the globe and without reform it risks being sidelined during the biggest economic crisis in a century. The world's largest economies agree that the organization must evolve to address the shifts in technology and in the global trading system that have occurred since 1995. If members can align behind a candidate committed to modernization it could break bureaucratic logjams and help unleash a wave of global growth at a time when it is needed most. If no such candidate can be found, the WTO risks further receding into irrelevance. The WTO's appellate body, the main forum for settling worldwide trade disagreements, lost its capacity in December 2019 to rule on new disputes. That resulted from a U.S. refusal over the previous two years to consider any nominees to fill vacancies on the panel. WTO members can still bring disputes to the trade body and receive an initial ruling but that can be appealed into legal limbo. The U.S. imposition of hundreds of billions of dollars worth of tariffs against China, and use of the WTO's national security loophole to levy duties on steel and aluminum, have also weakened the organization. The chairman of the WTO general council launched a selection procedure in June to confirm the trade body's next director-general. The council is endeavoring to narrow the field of eight candidates by holding confidential consultations with each of the WTO's 164 members. These consultations, known as “confessionals,” will be conducted by the WTO's three highest-ranking delegates, known as “the troika” which will hold three rounds of consultations and gradually narrow the field by identifying the candidates who are “least likely to attract consensus” and asking them to step down. The goal is to choose a consensus candidate by Nov. 7. WTO rules require candidates to have “extensive experience in international relations, encompassing economic, trade and/or political experience; a firm commitment to the work and objectives of the WTO; proven leadership and managerial ability; and demonstrated communications skills.” Member governments hope the next director-general can persuade members to complete much-needed reforms of the organization. Trade officials in Geneva broadly argue that the next leader should have sufficient personal authority and capability to marshal broad support around the WTO's reform agenda. That means strong consideration should be given to candidates who have, at the very least, some experience as a minister, Bloomberg says. In addition, there is a strong push among Geneva trade delegates to select a woman leader for the first time. However, several free-trade advocates like Wendy Cutler, vice president of the Washington-based Asia Society Policy Institute, argue that WTO members should try to avoid placing gender constraints on the selection process. The successful candidate must also thread a narrow diplomatic needle and steer clear of efforts that displease either the U.S. or China – whose bitter conflict over a growing array of issues including technology and the pandemic is testing their fragile economic truce. The U.S. administration has actively sought to undermine the WTO's ability to function, saying it has infringed on American sovereignty and enabled China to become a big economic player globally at the expense of U.S. jobs and manufacturing. Adding to the unpredictability factor, President Trump is up for re-election in November, so American tolerance for a candidate who looks too favorably on China might be tested. Meanwhile, China has engaged in a multi-year campaign to expand its diplomatic influence by installing key personnel at the top levels of international decision-making bodies. The WTO will remain leaderless until members select a permanent director-general – because member governments failed to choose an interim caretaker prior to the departure on Sept. 1 of the former DG. The WTO's four deputy directors-general are jointly overseeing the organization's housekeeping matters. If WTO members are unable to select a leader by consensus, a vote requiring a qualified majority could be held as a last resort – an unprecedented step in the organization's 25-year history. So, we will see. The Internal U.S. fight over trade policy is far from over and likely will continue to be prolonged and bitter—and should be watched closely by producers as the campaigns emerge and are debated, Washington Insider believes.
| Rural Advocate News | Thursday September 3, 2020 |
Commerce Postpones Preliminary, Final Determinations in Fertilizer Case The Commerce Department will delay the preliminary determination in the countervailing duty (CVD) investigation of imports of phosphate fertilizer from Morocco and Russia until no later than November 23, with a final determination to follow within 75 days. The original preliminary determination deadline was September 21, but law allows for a delay if Commerce determines it is needed or the petitioner in the case makes a timely request to postpone the preliminary determination. The petitioner — The Mosaic Company — submitted its request August 20, saying “additional time is needed for {Commerce} to analyze fully the questionnaire responses, issue supplemental questionnaires as appropriate, and prepare an accurate preliminary determination.”
| Rural Advocate News | Thursday September 3, 2020 |
USTR Outlines Plans On Seasonal, Perishable Vegetables The Office of the U.S. Trade Representative (USTR) has laid out the plans the administration plans to take relative to imports of seasonal and perishable produce, including senior-level government-to-government discussions with Mexico over the next 90 days “to address U.S. industry concerns regarding U.S. imports of Mexican strawberries, bell peppers, and other seasonal and perishable products.” USTR will also request the International Trade Commission (ITC) initiate a Section 201 safeguard investigation on imports of blueberries and will work with domestic producers for ITC to monitor and investigate imports of strawberries and bell peppers, a move that could enable an expedited Section 201 global safeguard investigation later this year. The Commerce Department will set up a program for outreach to Southeastern growers of seasonable and perishable fruits and vegetables to help them understand trade remedy laws and processes and set up a channel for them to provide information on unfair subsidies to foreign producers and exporters of these products, including those in Mexico. USDA will boost outreach to producers of seasonal and perishable fruits and vegetables on existing USDA programs, develop a marketing promotion strategy for those crops domestically produced and open conversations with key federal partners to better understand how imports of those products are utilized to enable criminal activity. The three agencies will set up an interagency working group to monitor the situation and USTR said this does not rule out “additional actions and investigations by the Trump administration” to support these producers. The effort comes after two public hearings USTR held in August on the situation.
| Rural Advocate News | Thursday September 3, 2020 |
Thursday Watch List Markets Another busy Thursday morning starts with weekly export sales, U.S. jobless claims, the July U.S. trade deficit and an update of the U.S. Drought Monitor, all at 7:30 a.m. CDT. U.S. natural gas inventory is at 9:30 a.m. CDT. The latest weather forecasts and any trade news will also be watched. Weather Thursday will be dry across most primary crop areas. Rain will be confined to the northern Great Lakes, Ohio Valley and southeast Texas to portions of the Deep South. Temperatures will be cooler in northern areas and very warm to hot elsewhere. Frost and freeze chances for next week are much lower than indicated earlier this week. The Australia Southern Oscillation Index (SOI) 30-day value for the equatorial Pacific Ocean is plus 10.72, indicating a weak La Nina event.
| Rural Advocate News | Wednesday September 2, 2020 |
Farmers Showing Optimism in Latest Ag Economy Barometer Farmers were more optimistic in August, as the Purdue University-CME Group Ag Economy Barometer rose to a reading of 144, 26 points higher than a month earlier. Organizers say the improvement resulted from improved perceptions regarding current conditions and better expectations for the future. The Index of Current Conditions rose 13 points in August to 124 while the Index of Future Expectations rose 33 points to 154. This month's improvement was underpinned by expectations for excellent crop yields, as indicated in the Department of Agriculture's August Crop Production report, and nearly across the board rallies in key ag commodity prices in August. The barometer and its two sub-indices all posted their most positive readings since February 2020, when record highs were established and before the coronavirus pandemic began. Producers also indicated they were more optimistic about agricultural exports increasing than in recent months, perhaps due to recent news about additional export sales to China. ************************************************************************************ EPA Proposes Streamlined Biotech Approvals for Crops A proposal from the Environmental Protection Agency would streamline the regulation of certain plant-incorporated protectants. The proposal allows biotech crops containing pesticide traits to be exempt from select regulations if they meet certain reporting requirements. Specifically, the EPA proposes exemptions under the Federal Insecticide, Fungicide and Rodenticide Act and the Federal Food, Drug and Cosmetic Act for certain plant-incorporated protectants created through biotechnology. The Agency has preliminarily determined that these substances meeting the exemption criteria have no risks of concern to humans or the environment. Under the proposed exemption, the EPA would require developers of the biotech crops to submit either a self-determination letter or a request for the EPA confirmation that their product meets the exemption criteria. EPA Administrator Andrew Wheeler says the new rule “will provide critical new tools for America’s farmers as they work to increase agricultural productivity.” The proposal is part of President Donald Trump’s Executive Order on Modernizing the Regulatory Framework for Agricultural Biotechnology Products. ************************************************************************************ NMPF: Food Chain Adapting to Coronavirus The coronavirus crisis is far from over, but the food supply chain has adapted effectively, according to the National Milk Producer Federation. NMPF chief counsel Clay Detlefsen says, “We’ve got the food industry on the right track.” However, he concedes, “It won’t be easy to keep us there.” Early challenges in acquiring enough Personal Protective Equipment and redesigning workplaces to keep workers safe have been largely met, but the continued circulation of the virus itself makes it challenging for businesses to be completely confident disruptions may be avoided. Progress continues in making sure supplies are manufactured in adequate quantities, as well as in understanding how the virus is spread and how to prevent it. Detlefsen of NMPF is also the private-sector chair of the Food and Agricultural Sector Coordinating Council. The council was set up after the September 11, 2001 terror attacks to share information between government agencies and private businesses during crises that affect the U.S. food-supply chain. ************************************************************************************ Farmland Ownership Interest Growing The COVID-19 pandemic has drawn more interest in farmland ownership. Farmers National Company says there is a growing interest by individuals and investment funds in owning land. Part of this interest is because of COVID-19’s impact on their investment psychology and the desire to invest in a stable, long-term real asset. The company says people are thinking about the food supply chain and sustainability of the food supply and deciding that they want to own an important part of how food is produced. Over the past several years, there has been somewhat less good quality cropland for sale than average with 2020 seeing even less for a number of months after the COVID-19 outbreak. Currently, there is additional farmland coming up for sale once again, with part of that being the normal seasonal upswing and part being people who have been thinking of selling deciding to go ahead and sell, providing some opportunity for farmers and investors alike. ************************************************************************************ Farmers are Participating in Virtual Farm Shows Farm Journal reports more than 50,000 farmers participated in its New American Farm Show experience. The ten-day experience included the Pro Farmer Crop Tour, Farm Journal Field Days and the #FarmON Benefit Concert. A survey of participants found 70 percent considered the overall experience as very good or outstanding. Meanwhile, 85 percent plan to participate in another virtual event, and 77 percent took action to learn more about a company or product they engaged with in the event trade show. Virtual farm shows and events are the new normal for 2020, and potentially the future. Farm Journal CEO Andy Weber says farmers “conducted business exponentially more efficiently than ever before, and that's a trend that's here to stay." The next major virtual farm show offering on the schedule is the 2020 Farm Progress Show, scheduled for September 15 – 17. The show combines Farm Progress Show and Husker Harvest Days into one virtual event, including educational sessions, live insights from farmers, and unique product features. ************************************************************************************ Restaurant Industry Promoting National Food Safety Month The National Restaurant Association is promoting food safety training, celebrating Food Safety Month through September. As the country continues to battle COVID-19, ensuring that proper safety protocols are in place at restaurants has never been more important for guests, employees and brands. Through its ServSafe program, the association’s food safety and training certification program, the organization is boosting food safety training and risk management with an educational campaign this month. Organizers say the campaign will focus on best practices for a safe dining experience and is essential as the industry does all it can to keep its restaurants clean and sanitized, and employees educated about how they can help prevent the spread of the coronavirus. National Food Safety Month will take place over a five-week period. Each week will focus on a single topic. Weekly topics include personal hygiene, cleaning and sanitizing, safe food preparation, food safety procedures and COVID-19 Safety Procedures.
| Rural Advocate News | Wednesday September 2, 2020 |
Washington Insider: Political Tension Over Antivirus Efforts Continues to Grow Amid the tensions involving House investigations panel threats to subpoena documents from the U.S. Postal Service, House Majority Leader Steny Hoyer, D-Md., said he expects Congress to rely on a continuing resolution to fund the government after the current fiscal year concludes at the end of September. The Postal Service has become the center of political clash between Democrats and President Trump. Nevertheless, Hoyer thinks “it is likely that we will pass a continuing resolution to keep government open past the end of this fiscal year. The House will do its job to avert a shutdown that would only further damage our economy,” Hoyer said, according to a Bloomberg report. In the meantime, state and local governments are ramping up their lobbying efforts to prod Congress to approve billions in additional coronavirus aid to help them grapple with dismal budget projections and the limits on existing relief funding. The effort comes as congressional and White House negotiators are stalemated on another pandemic relief package, and with state and local funding a sticking point between the parties. “State and local governments don't have the luxury of sort of letting the chips fall where they may,” said Leslie Pollner, a senior policy adviser at Holland & Knight whose clients include Phoenix, Seattle and the City and County of San Francisco. “They literally are on the phone every day — either they are or we are — trying to try to push on this.” Sixty-one state and local governments have retained lobbying firms since the beginning of March, as the pandemic began battering their budgets, Bloomberg said. A group of seven different associations representing state and local governments, including the National Governors Association, the National Association of Counties and the National League of Cities, banded together to leverage their contacts on Capitol Hill and K Street. The National Governors Association hired the Duberstein Group in April, its first lobbying firm since 2017. Its team of advocates includes a former senior GOP Senate aide, David Schiappa, and a former White House official from the Trump administration, Ben Howard. Even with “rainy day” savings, states and localities have been hard hit by declining revenues, including from reduced tax and fee payments caused by the pandemic and from increased coronavirus-related spending on items such as testing and personal protective equipment. Furloughs, layoffs and budget cuts could delay or cut services, infrastructure and capital projects, the groups say. They argue the impacts could be seen at public schools, hospitals, libraries, transit agencies, and police and fire departments. “It really could have a domino effect,” said Paul Guequierre, the communications director for the National Association of Counties. “We're feeling the impact now and we expect to feel the impact for quite some time.” States project a shortfall of more than $550 billion through fiscal year 2022, according to the Center for Budget and Policy Priorities. The National Association of Counties says it expects a $202 billion impact to county budgets through fiscal year 2021, including the $30 billion counties likely will spend on the COVID-19 response. Cities are anticipating $360 billion in lost revenue between 2020 and 2022, according to the National League of Cities. During the second quarter of this year, as the coronavirus pandemic spread, 659 governments and associations shelled out $15.1 million to lobby the federal government. Territories, states, localities and the associations that represent them spent $14.2 million on their lobbying efforts for the same period in 2019, Bloomberg says. The National Governors Association has asked Congress for $500 billion in aid for states and territories, the same amount requested by the National League of Cities for county and municipal governments to use over the next two years. In May, Sens. Bill Cassidy, R-La., and Bob Menendez, D-N.J., introduced legislation that would create a $500 billion stabilization fund for state and local governments. The following week, House Democrats passed a $3 trillion relief package that would have provided almost $1 trillion to state and local governments. Neither measure has gained any traction in the Senate, Bloomberg says. Senate Majority Leader Mitch McConnell, R-Ky., didn't include such aid in his latest “skinny” pandemic package. The first round of coronavirus relief that Congress passed in March contained $150 billion for state governments and $3 billion for the District of Columbia and U.S. territories. State and local government officials, however, say the guidelines for how the money can be used keeps changing and they worry about either spending it all at once or the potential that it could be clawed back. The federal stimulus funds were only directed to states and cities with populations of 500,000 or more people, and “the principal focus has to be on how to rectify that,” said former Rep. Ed Royce, R-Calif., who left Capitol Hill last year and now works as a policy director at Brownstein Hyatt Farber Schreck. Royce, who is among the lobbyists at the firm hired by the National League of Cities in May, said he's talking to many of his former Republican colleagues. Getting municipal governments back on their feet is “going to require considerable resources,” he said, “but the thumb was on the scale last time to such an extent that there wasn't support for local communities.” So, we will see. There have been modest reports of renewed negotiations on further relief efforts, but tensions certainly remain high. Certainly, producers should watch these support efforts closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday September 2, 2020 |
USDA's Perdue Assures State Ag Leaders Another CFAP Round is Coming USDA worked quickly to get payments pushed out via the Coronavirus Food Assistance Program (CFAP), and USDA Secretary Sonny Perdue told the National Association of State Departments of Agriculture (NASDA) that a coming second round of aid could help address shortcomings the department had to grapple with as it initially pushed to get aid out the door. Since CFAP only covered losses incurred through April 15, there has been criticism from those in agriculture how say that there were sizable losses that happened after that date. “We have listened and will be coming with a CFAP 2 program,” Perdue said, which will address that issue. Expectations are the CFAP 2 effort should be announced soon and signup is expected to start shortly after the effort gets announced.
| Rural Advocate News | Wednesday September 2, 2020 |
CFAP Payouts Top $9.4 Billion USDA has now either paid out or has payments in review for disbursement totaling $9.445 billion as of August 31 under the Coronavirus Food Assistance Program (CFAP), an increase of more than $220 million from the prior week. That includes $4.695 billion for livestock, $2.475 billion for non-specialty crops, $1.715 billion for dairy, $528 million for specialty crops, and $29.7 million for aqua nursery flora. The by-commodity breakdown includes $4.066 billion for cattle, $1.714 billion for milk, $1.667 billion for corn, $582.8 million for hogs, $477.9 million for soybeans, and $242.7 million for upland cotton. States with $500 million or more in payments are Iowa ($934.7 million), Nebraska ($678.8 million), Minnesota ($583.2 million) Texas ($561.1 million), California ($540.7 million), and Wisconsin ($509.6 million).
| Rural Advocate News | Tuesday September 1, 2020 |
USDA Extends Free Meals for Kids Through December 31, 2020 The Department of Agriculture Monday extended free meals for kids through December 31. The announcement, according to Agriculture Secretary Sonny Perdue, allows summer meal program operators to continue serving free meals to all children into the fall months. The flexibilities include permitting meals to be served outside of the typically required group settings and mealtimes, waiving meal pattern requirements and allowing parents and guardians to pick-up meals for their children. Democrats have asked Perdue to make the flexibilities available for the full 2020-2021 school year. Previously criticizing failure to do so, Debbie Stabenow, a Senate Democrat from Michigan and ranking member of the Senate Agriculture Committee, says, “I’m pleased the USDA has finally listened and agreed to extend important school meals flexibilities." In the announcement, USDA says, "while there have been some well-meaning people asking USDA to fund this through the entire 2020-2021 school year, we are obligated to not spend more than is appropriated by Congress." ************************************************************************************ House Democrats Allege Secretary Perdue Violated Hatch Act House Democrats claim Agriculture Secretary Sonny Perdue violated the Hatch Act during a visit to a Farmers to Families Food Box Distributor. Led by Democrat Marcia Fudge of Ohio, a group of lawmakers made the claim in a letter to the Department of Agriculture’s Office of Ethics. Specifically, the letter cites a potential Hatch Act violation by Perdue after he made political statements promoting the President’s re-election at the official government event on August 24. The letter follows the Republican National Convention, in which the lawmakers claim, “included several possible violations of the Hatch Act over the course of four days.” While referring to attendees of the event, Perdue states, “they and many others are going to vote for you for four more years in 2020.” Noting the Hatch Act prohibits executive branch employees from using their official position to influence the result of an election, the lawmakers requested information on Departmental travel to ensure USDA is complying with the Hatch Act. ************************************************************************************ States Challenge Trump NEPA Changes A group of 27 attorneys generals last week filed a lawsuit challenging changes to the National Environmental Policy Act. Led by California and Washington, the coalition claims the changes are unlawful and limits public participation in the review process. In the lawsuit, the coalition argues that the final rule abandons informed decision making, public participation and environmental and public health protections in violation of the Administrative Procedure Act. California Attorney General Xavier Becerra (Hav-e-air Ber-sair-uh) says, “The Trump Administration has spent the better part of four years trying to roll back critical protections and undo hard-fought progress, particularly when it comes to our environment, public lands, and natural resources.” NEPA requires federal agencies to assess the environmental effects of their proposed actions before making decisions. The Environmental Protection Agency enforces NEPA. In July, EPA Administrator Andrew Wheeler said the changes modernize and streamline the federal permitting process required under NEPA and speed up infrastructure projects. ************************************************************************************ Farmer Trust Remains High During COVID-19 Pandemic A new national poll from Charleston Orwig shows consumer trust in farmers remains high amid the COVID-19 pandemic. Charleston Orwig recently partnered with MenuMattters to conduct the poll of more than 1,100 consumers to gauge consumer thoughts on the grocery retail sector. More than half of consumers surveyed still trust farmers a great deal or completely, and overall trust in farmers is 87 percent. Meanwhile, nearly half of all consumers are concerned about the U.S. food supply chain, likely driven by broad shortages during the height of the crisis and media coverage on the possibility of meat shortages. Nearly 75 percent of consumers are concerned about catching coronavirus when grocery shopping, and the level of concern is consistent across all consumer groups surveyed. Just under two-thirds find grocery shopping frustrating to some degree, with women and older Millennials most likely to be very or extremely frustrated by the experience. Also, most consumers are concerned about the health safety of food industry workers-from agriculture through retail. And just over 23 percent are extremely concerned. ************************************************************************************ DFA Seeks to Reduce Greenhouse Gas Emissions by 30 Percent Dairy Farmers of America seeks to become the first U.S. dairy cooperative to set a science-based target to reduce greenhouse gas emissions. The national dairy cooperative is setting a science-based target and committing to reduce both direct and value chain greenhouse gas emissions by 30 percent by 2030. By having their targets validated by the Science Based Targets initiative, DFA supports the Paris Agreement's broader goals to keep global warming below two degrees Celsius. Additionally, DFA's target is aligned with work of the Innovation Center for U.S. Dairy and its goals for the U.S. dairy industry to become carbon neutral or better by 2050. Ways to reduce greenhouse gasses, according to DFA, includes mitigating methane emissions from cows by supporting advances in feed efficiency, herd nutrition and feed additives designed to reduce emissions. Additionally, the plan calls for using renewable energy methods, anaerobic digesters, capturing emissions through healthy soil and crops and creating transportation and hauling efficiencies to reduce emissions. ************************************************************************************ NASDA Adopts New Strategic Plan The National Association of State Departments of Agriculture Board of Directors just adopted a new strategic plan to guide the association for 2020-25. NASDA president-elect and Kentucky Commissioner of Agriculture Ryan Quarles chaired the 14-person strategic plan working group comprised of NASDA members. Quarles says the new strategic plan “will guide us as state agricultural officials as we engage many other partners in this critical journey.” NASDA's new mission statement is: Grow and enhance American agriculture through policy, partnerships and public engagement. NASDA's new vision statement is: Agriculture leads the way toward a healthy and resilient world. Over the next five-years, NASDA officials say they will be tackling tough expectations on government affairs, membership engagement, partnerships, and public outreach. Established in 1916, NASDA is a nonpartisan, nonprofit association which represents the elected and appointed commissioners, secretaries and directors of the departments of agriculture in all fifty states and four U.S. territories.
| Rural Advocate News | Monday August 31, 2020 |
CFAP Deadline is Approaching The USDA’s Farm Service Agency is reminding farmers and ranchers that the deadline to apply for the Coronavirus Food Assistance Program is September 11. The program is designed to provide direct relief to producers who faced price declines and additional marketing costs due to COVID-19. “FSA offers several options for farmers and ranchers to apply for CFAP, including a call center where employees can answer your questions and help you get started on your application,” says Richard Fordyce, Administrator of the Farm Service Agency. “As we get closer to the deadline, now is the time to check out our resources on our website and contact the call center or your local office for your last-minute questions.” Over 160 commodities are eligible for CFAP, including certain non-specialty crops, livestock, dairy, wool, specialty crops, eggs, aquaculture, and nursery crops and cut flowers. All eligible commodities, payment rates, and calculations can be found online at farmers.gov/cfap. Customers seeking one-on-one support with the CFAP application process can call 877-508-8364 to speak directly with a USDA employee who can offer general assistance. This is the recommended first step before producers talk to the team at their local FSA county office. ********************************************************************************************** Top Ag Negotiator Tones Down Approach to Phase One Trade Deal The United States’ top agricultural negotiator appears to have toned down his rhetoric on the Phase One Trade Deal between the U.S. and China. During a speech given to the U.S. Soybean Export Council, Gregg Doud didn’t talk about the binding nature of the deal, its enforcement mechanisms, or the ability to reimpose tariffs. When asked about the sanctions for non-compliance, he stressed the fact that the deal is a two-year commitment. Investing Dot Com says the speech was in sharp contrast to some other appearances by the U.S. Trade Representative’s chief agricultural negotiator. At the USDA’s annual forum back in February, he said both nations would meet every month to discuss progress, while also noting that a lack of compliance could allow each of the nations to impose tariffs equivalent to the size of the damage. During his appearance with USSEC, he said, “Everyone wants to measure month to month, how we are doing there. At least from my perspective, we have to give this some time.” American farm exports to China have been running behind the pace needed to reach the $36.5 billion commitment this year. Shipments for the first six months of 2020 totaled just 23 percent of the overall target. ********************************************************************************************** Grassley Applauds Lower Taiwan Barriers for Beef and Pork Iowa Senator Chuck Grassley applauded Taiwan’s announcement of lower trade barriers for U.S. beef and pork. “Taiwan is taking steps to improve market access for American beef and pork producers by trying to bring its measures in line with international standards,” says Grassley, the Chair of the Senate Finance Committee. “I welcome this progress because our farmers have been kept out of this market for far too long.” He says Taiwan’s leadership will need to work with the legislature to finalize this process, but that’s expected since Taiwan is a vibrant democracy. “I’ll be following this matter closely and look forward to an improved agricultural and economic relationship between Taiwan and the American people,” he adds. At a press conference last week, the President of Taiwan said she’d instructed the government to ease regulations to allow imports of American pork containing trace amounts of an animal-feed additive used by some U.S. farms, as well as U.S. beef products from cattle age 30 months and older. U.S. officials have long regarded these restrictions as the main barrier to closer trade links with Taiwan. ************************************************************************************ SD Governor Merges Agriculture, Environment and Natural Resources Departments South Dakota Governor Kristi Noem announced the merger of the state’s Departments of Agriculture and the Environment and Natural Resources. She says the merger will make for a streamlined South Dakota Department of Agriculture and Natural Resources. Hunter Roberts, the current Secretary of Environment and Natural Resources, will oversee the new department. Beginning on September 8 and until the merger is complete, Roberts will serve as the interim Secretary of Agriculture while also continuing to lead the Department of Environment and Natural Resources. “Lieutenant Governor Rhoden has stepped up to guide the Department of Agriculture through this important transitional period, and I really appreciate the hard work and leadership,” Noem says. “Agriculture is our number one industry, and under Secretary Roberts’ leadership, this department will serve producers better than before.” Roberts also says that “South Dakotans know our farmers and ranchers are the best conservationists, and this department will promote our number one industry while we simultaneously protect our natural resources.” ********************************************************************************************** Conservation Compliance Final Rule Falls Short The American Farm Bureau says farmers will remain powerless in the Highly Erodible Land and Wetland Conservation Final Rule made public last week by the USDA. Farm Bureau advocated for clear rules and safeguards to ensure fair treatment of farmers in conservation compliance, but the final rule does not remedy unfair enforcement by the Natural Resources Conservation Service. “After decades without a finalized rule in this area, we finally have one, but it, unfortunately, falls short,” says AFB President Zippy Duvall. “Farmers and ranchers are some of the strongest advocates of conservation, as demonstrated by the 140 million acres they’ve voluntarily committed to federal conservation programs.” Duvall also says that’s not what this is about. “This is about unfair treatment, which we’ve clearly laid out for USDA in previous comments and many meetings, backed by court rulings,” he adds. The AFB says farmers deserve a fair process and clarity, including an understanding of the exemptions authorized by Congress. They also deserve to be protected from repeated, unjustified, costly decisions by the NRCS. “Although we appreciate recent actions by USDA to rectify historic wrongs, this was a missed opportunity to ensure fairness going forward,” Duvall says. “We will continue to examine this rule and our options to address its shortcomings.” ********************************************************************************************** Farmers to Families Food Box Program Reaches 75 Million Boxes The USDA’s Farmers to Families Food Box Program has distributed more than 75 million food boxes in support of American farmers and families affected by COVID-19. President Trump recently announced another $1 billion will be added to the Farmers to Families Food Box Program while the economy continues to reopen. “The delivery of 75 million food boxes has helped an incredible number of Americans in need,” says Ag Secretary Sonny Perdue. “I couldn’t be prouder of the great job done by the food box program staff and the many farmers, distributors, and non-profits that helped to get this program off the ground for the American people.” Perdue also says the program is almost finished with its second round of deliveries and they’re working harder than ever to continue to build on their success of the program. The third round of purchasing starts on September 1, when USDA plans to purchase combination boxes to ensure all recipient organizations have access to fresh produce, dairy products, fluid milk, and meat products. Additional box types will be considered on an as-needed basis.
| Rural Advocate News | Monday August 31, 2020 |
Washington Insider: New Economic Inclusiveness Fed Policy POLITICO is reporting this week that the Federal Reserve has unveiled a new policy promoting “broad-based and inclusive” job gains, a major shift acknowledging the central bank should help disadvantaged Americans. As you might expect, the new policy is already controversial, but for somewhat surprising reasons. Many Democrats are saying that the pledge to focus on maximum employment doesn't go far enough. “As the COVID-19 pandemic crisis and its economic impacts disproportionately affect communities of color, and communities around the country march in the streets for justice, the Federal Reserve must do everything it can to ensure the recovery is equitably shared,” said Rep. Maxine Waters, D-Calif., with other Democrats has introduced a bill requiring the Fed to focus on race, in a statement. The mounting calls for economic activism are putting the apolitical institution in an uncomfortable spotlight even as it breaks with past policies that have been blamed for exacerbating inequality. Fed Chair Jerome Powell this week maintained that the bank's policy tools aren't nimble enough to specifically help certain populations. But he has focused on giving a leg up to “those left behind.” “The single most important thing we can do here is to support a strong labor market,” Powell said Thursday, when asked how the Fed could help minorities. Civil rights activists, including the late Coretta Scott King, have championed that Fed mandate, which was signed into law in 1978. But ending racial inequality “is more of an all-government, society project that we need to take on forcefully,” he said. “It can't just be the way the Fed manages interest rates.” The Fed's new plan entails keeping interest rates low for as long as it takes to employ as many people as possible, though it may take years before that policy begins to benefit the most financially vulnerable. It's an acknowledgment that rate hikes in previous business cycles, intended to head off inflation, have caused some people to miss out on the benefits of economic growth. Disproportionately, those people have been minorities. “The entire 1980s under [former Fed Chairman] Paul Volcker and his war on inflation, each and every month the Black unemployment rate was above 10%,” said William Spriggs, a professor of economics at Howard University and the AFL-CIO's chief economist. “Black America was forced to live an entire decade in a depression. “Black America was the easiest group of folks to make understand what it means when you never let the economy return to full employment,” he added. The Fed is pledging not to raise interest rates until prices begin to rise more rapidly — allowing inflation to move slightly above its target of 2%. That will likely push unemployment lower than it otherwise would be able to go, giving chronically out-of-work Americans a crucial opportunity to rebuild a connection to the workforce. But Democrats, including Waters and Sen. Elizabeth Warren, D-Mass., want the central bank to pursue more aggressive policies that aim to close racial wage and employment gaps, including through its supervision of banks and community development initiatives. Those lawmakers, with others like Sens. Kirsten Gillibrand, D-N.Y., and Cory Booker, D-N.J., and Rep. Ayanna Pressley, D-Mass., have introduced a bill that would require the Fed to pursue policies in a way that “minimizes and eliminates racial disparities in employment, wages, wealth, and access to affordable credit.” Biden has also included in his platform a call for the Fed to be required to “aggressively target” such racial gaps, beyond its current congressional mandates of price stability and maximum employment. Powell has bemoaned the tragedy of the pandemic, which thrust the country into a deep recession and put millions out of work just as the decadelong expansion was starting to boost wages and create employment opportunities for low-income people. Atlanta Fed President Raphael Bostic, the first Black head of a regional Fed branch, has called systemic racism “a yoke that drags on the American economy.” The Fed's goals in its policy shift are broader than just employment; seeking modestly higher inflation would allow the central bank to raise rates higher down the road, giving it more room to later cut them — its standard stimulus response in the face of a downturn. It's also aiming to avoid the fate of Japan, which for decades has struggled against deflation and sluggish growth. Still, the pivot represents a years-long evolution at the central bank, as 50-year-low unemployment never yielded problematic levels of inflation. Essentially, if the Fed is raising rates in anticipation of inflation that's not actually coming, it's merely slowing down job and wage gains. “In December 2015, when the Fed started to raise rates, [Black unemployment] was 8.5% compared to 5% overall,” said Amanda Fischer, policy director at the Washington Center for Equitable Growth. “To call that a tight labor market is pretty stunning.” Plenty of Fed observers argue that the central bank isn't well-suited to reducing racial inequality. “It gives the Fed too much credit, and it avoids all the really hard questions,” said Norbert Michel, an economist at The Heritage Foundation, a conservative think tank. Others point to the potential for low rates to inflate financial bubbles; with borrowing costs low, investors might decide to put their money into riskier assets that offer a higher rate of return. The fallout of financial crises also hits poor and minority Americans the hardest. “[Though] well-intentioned, the Fed's new policy will just give it more reason to keep rates near zero for a very long time, pumping more cheap debt into the system, making the big bigger, the rich richer, and dragging down economic innovation and growth,” former FDIC Chair Sheila Bair tweeted on Friday. Critics who argue the Fed's policies heighten wealth inequality point to structural factors: The central bank's methods of stimulating the economy boost financial asset prices — enriching those who actually hold those assets, while benefiting everyone else more indirectly, if at all. “Monetary policy as a way to juice the economy is broken, and the transmission mechanism has been broken because wealth is so concentrated in the top 1 percent and the top 10 percent,” Fischer said. “If we want monetary policy to get back to working again, we need to reduce wealth inequality.”
| Rural Advocate News | Monday August 31, 2020 |
Hatch Act Complaint Filed Against USDA's Perdue Citizens for Responsibility and Ethics in Washington filed an ethics complaint against USDA Secretary Sonny Perdue, charging that his participation in a Families to Food Box event with President Donald Trump on Monday was a violation of the Hatch Act. The Hatch Act prohibits any executive branch employee from using his or her “official authority or influence for the purpose of interfering with or affecting the result of an election.” Democratic lawmakers have also raised concerns about the inclusion of a letter from President Trump that is included with the food boxes.
| Rural Advocate News | Monday August 31, 2020 |
Taiwan Announces Shift on Imports of US Pork, Beef Taiwan will ease restrictions on imports of U.S. pork and beef, announcing they will allow shipments of U.S. pork containing the feed additive ractopamine and will allow imports of U.S. beef from animals older than 30 months of age. Taiwan's leader, Tsai Ing-wen, said the decision is in line with their interests and their goals of “strategic development,” adding it could boost ties between the U.S. and Taiwan. “It will be an important start for Taiwan-U.S. economic cooperation at all fronts,” she commented. Council of Agriculture Minister Chen Chi-chung said the new rules will take effect January 1. U.S. Trade Representative Robert Lighthizer has cited the pork and beef restrictions by Taiwan as being an impediment to a closer trade relationship between the two.
| Rural Advocate News | Friday August 28, 2020 |
More CFAP Funding Possible after Labor Day Agriculture Secretary Sonny Perdue this week hinted at more Coronavirus Food Assistance Program aid for farmers on the horizon. Perdue confirmed that the Department of Agriculture is considering “shortly after Labor Day” offering a second wave of CFAP relief during a press call. Funding for the next round of payments would come from the additional $14 billion Congress allocated in the Coronavirus Aid, Relief and Economic Security Act to replenish the Commodity Credit Corporation account after July 1, 2020. Many agriculture groups say more relief is needed for farmers and ranchers as the first wave of CFAP will close September 11 when the sing up period closes. Although, farm groups are lobbying for even more aid, like the $20 billion included in the failed Senate aid package last month. Lawmakers are expected to try again in September to pass another round of economic stimulus, but it is uncertain if agriculture will be included. ************************************************************************************ USDA Outlook Forecasts Increased Exports U.S. agricultural exports in fiscal year 2021 are projected at $140.5 billion, up $5.5 billion from previous estimates. The Department of Agriculture this week released its Outlook for U.S. Agricultural Trade report. The report says the increase is primarily driven by higher exports of soybeans and corn. Soybean exports are forecast up $4.2 billion from fiscal year 2020 to $20.4 billion, largely due to expected strong demand from China and reduced competition from Brazil. Corn exports are projected up $700 million to $9.0 billion on expectations of higher export volume. Livestock, poultry, and dairy exports are forecast up $500 million to $32.3 billion in 2021, led by higher beef and veal, variety meat, dairy, and poultry. Agricultural exports to China are forecast at $18.5 billion, an increase of $4.5 billion, largely on higher expected soybean sales. Agricultural exports to Canada and Mexico are forecast at $21.0 billion and $19.3 billion, respectively. And 2021 U.S. agricultural imports are forecast at $136.0 billion, $4.3 billion higher than previous estimates. ************************************************************************************ Senators Seek Robust Enforcement of USMCA Dairy Agreements A bipartisan group of 25 Senators is identifying challenges with implementing several dairy-related provisions in the United States-Mexico-Canada Agreement. Underscoring USMCA’s importance to the dairy industry, the group asks the U.S. government in a letter to use USMCA’s enforcement measures to ensure full compliance with the trade deal. The Senators collectively state, “we ask that you use USMCA’s enforcement measures to hold our trading partners accountable to their trade commitments.” The U.S. Dairy Export Council and the National Milk Producers Federation commend the coalition of Senators for standing up for dairy farmers, processors and exporters and pressing for fair and full implementation of USMCA’s dairy provisions. The lawmakers say Canada has already begun implementing USMCA in a way that thwarts its market access promises and prevents U.S. dairy from making full use of the trade agreement. There are also unanswered questions concerning how Mexico will translate its commitments to safeguard common name cheeses into action. ************************************************************************************ Democrats Denounce USDA Inaction to Provide School Meals to Children Democratic lawmakers want the Department of Agriculture to reverse a decision to provide meals to students throughout the entire school year. Senator Debbie Stabenow, a Michigan Democrat and member of the Senate Agriculture Committee, states, "The Department's refusal to extend all school meal waivers is inconsistent and baffling during this national crisis." In the Families First Coronavirus Response Act, Congress granted authority to the USDA to issue waivers so schools and community sponsors could provide school meals to children during the COVID-19 pandemic. USDA has stopped short of extending all available flexibilities that keep children fed while schools are closed and also reduce administrative burdens for schools. In a letter to Agriculture Secretary Sonny Perdue on August 14, Stabenow urged USDA to take action and use its full authority to provide healthy meals to students for the duration of the school year. Secretary Perdue responded on August 20 and refused to extend waivers that allowed states and schools to more seamlessly operate through the emergency summer meal programs. ************************************************************************************ Gillibrand Urges USDA to Provide Direct Relief to Small Farmers Kirsten Gillibrand, a Senate Democrat from New York and Senate Agriculture Committee member, is urging the Department of Agriculture to provide direct relief for small farmers. Gillibrand says she is “demanding” USDA to “answer for the inequitable distribution” of payments under the Coronavirus Food Assistance Program. In a letter to Agriculture Secretary Sonny Perdue, Gillibrand is calling on USDA to address gaps in CFAP that “have left small farmers in crisis.” Specifically, Gillibrand is urging USDA to make the program more equitable for small farmers and ranchers, collect data on farm size and demographics for CFAP applications, and set aside at least 50 percent of all assistance funds specifically for small and mid-scale operations, with payment amounts calculated the same for all producers, based on revenue losses. Gillibrand states, “The disparities in federal farm relief are unfair to our small farmers who are facing insurmountable debt and are struggling to stay afloat due to the pandemic.” ************************************************************************************ USDA Extends Signup Deadline for New Conservation Pilot Program The Department of Agriculture is extending the deadline to November 20, 2020, for the Soil Health and Income Protection Program. The new pilot program enables farmers to receive payments for planting perennial cover for conservation use for three to five years. Signup opened March 30, 2020, for the pilot program, which is part of the Conservation Reserve Program and available to producers in Iowa, Minnesota, Montana, North Dakota, and South Dakota. Farm Service Agency Administrator Richard Fordyce says, “We want to ensure our producers are given adequate time to enroll in this pilot program to improve soil health on their farms.” Producers can apply for three-, four-, or five-year CRP contracts to establish perennial cover on less productive cropland in exchange for payments. This pilot enables producers to plant perennial cover that, among other benefits, will improve soil health and water quality while having the option to harvest, hay, and graze outside the primary nesting season. Producers can enroll up to 50,000 acres in the program.
| Rural Advocate News | Friday August 28, 2020 |
Washington Insider: EU Trade Chief Departs The EU likely will struggle to find a candidate to match the stature of departing trade chief Phil Hogan who resigned late Wednesday amid a public outcry over attending an Aug. 19 dinner in his native Ireland “that broke the country's rules to fight the coronavirus," Bloomberg reports. Known as “Big Phil” in Brussels for his 6-foot-5-inch frame, he was also a dominant policy figure in nine months as EU trade commissioner. In a 27-member club where top jobs like his are jockeyed for and filled based on a Byzantine combination of nationality, party affiliation and experience, Hogan was proof that such a system doesn't always come at the expense of competence, Bloomberg said. In fact, Hogan's five-year stint as EU agriculture commissioner from 2014 to 2019 was reason enough for European Commission President Ursula von der Leyen to hand him the trade portfolio when she took office in December. As farm chief, Hogan had helped the bloc forge landmark tariff-cutting agreements with Japan and the Mercosur group of Argentina, Brazil, Paraguay and Uruguay. In political terms, Hogan also fit the bill for the broader trade portfolio because he was the first member of Europe's Christian Democrats to take on the job (other than on a caretaker basis) in 20 years, Bloomberg said. Liberals from Sweden and Belgium and Socialists from the UK and France held the post in the interim. The Christian Democrats are the EU's biggest political family and include German Chancellor Angela Merkel. At a time of heightened global commercial tensions triggered by everything from greater U.S. protectionism to pandemic-induced shocks to supply chains, Hogan bolstered the bloc's unity and weight in trade matters. Last week he proved icy Brussels-Washington trade relations could start to thaw with officials including U.S. Trade Representative Robert Lighthizer, whose middle name is Emmet — after the Irish patriot of the late 18th and early 19th centuries called Robert Emmet. Hogan and Lighthizer on Friday announced a surprise deal to eliminate EU tariffs on goods including American lobster, barely a blip in the overall trade relationship in dollar terms but valuable enough politically for President Trump to “sound like a winner.” It was a long way from late 2019, when Hogan irked U.S. officials by accusing them of protectionism and criticizing Trump's “America First” trade doctrine. Now, von der Leyen has her work cut out finding a replacement for a key member of her team. While the Irish government is responsible for nominating a new commission appointee from the country, von der Leyen will decide on the person for the trade portfolio. Bloomberg also notes that von der Leyden could opt to give the trade role to one of the remaining 25 commissioners now handling other policy matters—but, at the moment, there's no obvious pick in that group. And, Bloomberg thinks that whoever gets the job will face serious challenges ranging from the EU's post-Brexit ties with the UK and China's commercial rise to a high-profile dispute with the U.S. over aircraft subsidies and deadlock at the World Trade Organization. So von der Leyen can't afford to pick unwisely. At the same time the EU is searching for a replacement trade manager, the U.S. is facing also faces head winds in its efforts to achieve target levels of sales of farm products to China over the coming two years. “That's unlikely to happen, if you believe the USDA forecasts,” Bloomberg says. U.S. farm product exports to China are expected at $18.5 billion in Fiscal Year (FY) 2021 that starts October 1, although they are expected to exceed the $14 billion reported for the prior 12 months, USDA reported on Wednesday, up $1 billion from their prior forecast. While the periods don't quite align with the annual trade deal targets, the forecasts point to a significant shortfall. China pledged to buy $36.5 billion in U.S. agricultural goods in 2020 and $43.5 billion the following year, figures many traders and analysts have long considered ambitious. USDA's recent estimates indicate that meeting the targets for both years would require enormous purchases in the fourth quarters. Chinese purchases have fallen behind partly because the coronavirus hurt demand and disrupted logistical operations including the functioning of ports in the Asian nation. Shipments in the first half of the year hit only 20% of the pledge, USDA data showed. Still, the administration is touting a rosy outlook, especially after China made its biggest-ever purchase of U.S. corn in July, with cargoes set to arrive at Chinese ports in coming months. China “got off to a slow start but boy, has the momentum picked up,” Ken Isley, administrator of USDA's Foreign Agricultural Service, said at a U.S. soybean industry conference Tuesday. “The pace of purchases is really rolling right now.” “It's going to be difficult for them to hit that 2020 number, but we expect them to attempt to do it with very good faith,” observers said. So, we will see. Clearly a strong U.S. export performance in China will be an important political target and certainly one producers should watch closely as the season advances, Washington Insider believes.
| Rural Advocate News | Friday August 28, 2020 |
Pressure Building On Administration To Take Action Against Canada Over Dairy A group of 25 senators have become the latest to press the Trump administration to take action against Canada under enforcement provisions in the U.S.-Mexico-Canada Agreement (USMCA) over dairy. The latest letter to U.S. Trade Representative Robert Lighthizer and USDA Secretary Sonny Perdue sounds familiar themes as raised by 104 House members in a prior letter and by the U.S. dairy industry almost immediately after USMCA took effect in July. Their main focus continues to be the tariff-rate quotas (TRQs) on dairy announced by Canada, which “appear to run counter to numerous USMCA provisions,” the senators said in the latest letter. Plus, they called on the administration to make sure that Canada eliminates its Class 6 and 7 dairy pricing policy. But they also are pointing at Mexico, noting the country needs to be prodded on enforcement of side letters pertaining to geographical indicators.
| Rural Advocate News | Friday August 28, 2020 |
USDA Cuts FY 2020 US Ag Export Forecast, Sees Big Boost For FY 2021 U.S. ag exports to China in Fiscal Year FY) 2021 are forecast to rise to $18.5 billion, up from $14 billion in FY 2020, a forecast that USDA raised by $1 billion from its prior outlook. China factors into increases for several commodities, including sorghum, wheat and soybeans, according to USDA. Note that the FY basis (October/September) is not on the same as the Phase One agreement — a calendar year. U.S. ag exports to China in so far in FY 2020 (through June) were at $11.113 billion, USDA noted, up sharply from $6.753 billion at that point in FY 2019. Overall U.S. ag exports in FY 2021 are forecast at $140.5 billion against imports of what would be a new record of $136 billion, leaving a trade surplus of $4.5 billion. As expected, USDA lowered its outlook for FY 2020 U.S. ag exports, trimming it by $1.5 billion to $135 billion, while raising imports by $1.5 billion to a new record of $131.7 billion. That would leave a trade surplus of just $3.3 billion, the smallest since it was $2.31 billion in FY 1972. The trade levels were considerably different in FY 1972 — ag exports totaled $8.24 billion against imports of $5.94 billion. The updated FY 2020 forecast suggests USDA expects exports of $32.8 billion over the July-September period with imports of $31.2 billion.
| Rural Advocate News | Friday August 28, 2020 |
Friday Watch List Markets There are a host of important economic reports on Friday morning, including personal income, consumer spending and sentiment, and core inflation. We'll also be looking for additional comments from the Federal Reserve conference. Perhaps most importantly, traders will be focused on any changes to the weather outlook for the central U.S, and of course, more China demand. Weather Thunderstorms with locally heavy rain and possible damaging winds are in store for the northern Midwest Friday. We'll also see rain in portions of the southern and eastern Midwest, Mid South and Delta from tropical depression Laura. Other crop areas will be dry. Temperatures will be cool north, seasonal to above normal central and southeast and very hot southwest.
| Rural Advocate News | Thursday August 27, 2020 |
FAPRI Released August Baseline Report the University of Missouri’s Food and Agricultural Policy Research Institute's latest baseline report reflects corn losses stemming from the derecho (Deh-RAY-cho) in Iowa earlier this month. FAPRI released its August baseline report Wednesday. According to the report, corn-planted area in 2020 is projected to be 92.0 million acres, a sharp decline from March intended acres. A modest downward adjustment in Iowa corn yields, given the derecho event, pushes the production estimate 203 million bushels lower than USDA's estimate to 15.075 billion, a record production volume. Carryout stocks sharply increase, and corn farm prices are expected to fall to $3.24 per bushel. Meanwhile, projected soybean-planted area rose to 83.8 million acres in 2020/21, up sharply from last year. Soybean stocks hold steady in 2020/21 as a strong growth in exports is offset by a rebound in production, in part, on above-trend yields. Farm prices for soybeans hit a recent low of $8.24 for 2020/21. ************************************************************************************ Soybean-to-Corn Price Ratio Favors Soybeans A report from the Department of Agriculture suggests soybeans are increasing in profitability over corn. The soybean-to-corn price ratio is often used as one of several tools in measuring profitability of soybeans and corn. The current ratio of U.S. soybean to corn prices has recently risen, sending a signal to farmers that the relative profitability of soybeans has increased over corn, according to USDA’s Economic Research Service. The ratio, which averaged 2.51 over the past 20 years, can tell farmers whether planting, harvesting, and storing one or the other crop might be advantageous. When the USDA June 2020 Acreage report indicated that less corn acreage had been planted than expected in early spring, futures prices for corn in marketing year 2020/21 increased by eight percent. Soybean futures prices increased at the same time. Since late June, expectations of higher corn yields eroded the futures price for corn by 2.4 percent, while the price for soybeans increased by 1.1 percent. This differential in prices led to an increase in the soybean-to-corn price ratio from 2.64 to 2.71, a 2.5 percent increase from late June. ************************************************************************************ China Importing Record Pork Volumes China pork imports hit a record volume in July, more than doubling to 430,000 metric tons from a year earlier. Chinese importers have been bringing in huge volumes of meat this year to fill a large domestic supply shortage after African swine fever killed millions of pigs, according to Reuters. The data does not include the origin of pork, but major suppliers include the United States, Brazil, the European Union and Canada. The record comes as many countries saw a slowdown in processing earlier this year, creating a backlog of market-ready animals, due to the coronavirus pandemic. Further, China has slowed the import process by instituting coronavirus checks of frozen food containers. For the first half of 2020, China’s pork imports reached 2.65 million metric tons, up from just over one million tons a year ago. Meanwhile, China’s July beef imports reached 210,000 metric tons, and first half 2020 shipments were pegged at 1.2 million metric tons. ************************************************************************************ House Democrats Investigating Farmers to Families Food Box Program The House Coronavirus Crisis subcommittee seeks data on the Farmers to Families Food Box Program from the Department of Agriculture. Committee Chair, Representative James Clyburn, a Democrat from South Carolina, made the request in a letter to Agriculture Secretary Sonny Perdue. Clyburn cited concerns of "questionable contracting practices, a lack of accountability, and a failure to deliver food to many communities that need it most." Congress passed the Families First Coronavirus Response Act in March, which authorized USDA to purchase food directly from producers and distribute it to Americans in need of food assistance. The Democrat says USDA reportedly awarded contracts to companies that "never knew about" a required foodservice industry license and companies that lacked industry networks to source and deliver food. Clyburn alleges that rather than focusing on addressing these problems, the Administration "appears to be seeking political benefits from the program, including by inserting a letter signed by President Trump in food boxes." ************************************************************************************ EPA, USDA Announce Competition to Advance Agricultural Sustainability The Department of Agriculture and Environmental Protection Agency this week launched the Nex Gen Fertilizer Challenge. The initiative is a joint partnership and competition to advance agricultural sustainability in the United States. The competition includes two challenges that seek proposals for new and existing fertilizer technologies to maintain or improve crop yields while reducing the impacts of fertilizers on the environment. The first challenge, the EEFs: Environmental and Agronomic Challenge, aims to identify existing enhanced efficiency fertilizers that meet or exceed certain environmental and agro-economic criteria. The second challenge, the Next Gen Fertilizer Innovations Challenge, aims to generate new concepts for novel technologies that can help address environmental concerns while maintaining or increasing crop yields. Along with EPA and USDA, the competition is coordinated with The Fertilizer Institute, the International Fertilizer Development Center, the National Corn Growers Association, and The Nature Conservancy. Registrants must submit their entries by October 30, 2020, for the EEFs Challenge and by November 30, 2020, for the Next Gen Fertilizer Innovations Challenge. ************************************************************************************ Iowa Creates Program to Help Ruel Retailers Recover from COVID-19 Disruptions Iowa Governor Kim Reynolds this week allocated $100 million of CARES Act funding for Iowa Agriculture. The funds include $60 million for the Iowa Livestock Producer Relief Fund. The fund will provide grants of up to $10,000 to eligible producers of pork, beef, chicken, turkeys, dairy, fish or sheep to serve as working capital to stabilize livestock producers. Also included in the funding is the State Biofuel Grant Program, receiving $15.5 million. This fund will provide relief to Iowa ethanol and biodiesel producers based on gallons produced. Meanwhile, the Renewable Fuel Retail Recover Program, worth $7 million, Supports a program that helps expand retail fueling infrastructure for higher blend renewable fuels. Finally, the Iowa Beginning Farmer Debt Relief Fund, worth $6 million, provides eligible beginning farmers with a long-term debt service payment of up to $10,000, to be paid directly to their lender. Iowa Corn Growers Association President Jim Greif says, “every bit of help is needed,” while thanking Reynolds for the support.
| Rural Advocate News | Thursday August 27, 2020 |
Washington Insider: The Fight Over Diet Advice Food Safety News is reporting this week that suggestions that meat alternatives such as plant-based burgers should be included in the National Dietary Guidelines would be extremely unpopular in some quarters. Still, others already extol the benefits of vegetables and fruits — and that it would only be a modest step for the government to recommend meatless products for use in school cafeterias and nursing homes. Such a change would certainly cause fireworks among groups that raise livestock and who believe that meat is the “backbone of a healthy diet.” However, the report also notes that while the role of meats in U.S. diets has long been central, “without a doubt, people's eating preferences do change as time goes by. Doctors' advice also changes.” FSN says that while consumers do not often follow the guidelines precisely, they affect federal nutrition policies and form the basis for changes to programs such as the National School Lunch and Breakfast Programs. And, the government hopes “that people will substitute healthy foods such as vegetables, fruits, grains, nuts, and lean meats for junk food — at least for some of it.” This, in turn, is expected to improve people's health. FSN notes that the most recently released advisory report took place against a backdrop of significant and worsening health issues related to nutrition in the United States — including overweight and obesity. More than 70% of Americans are overweight or obese and these cause both public health problem and are linked to chronic diseases such as cardiovascular disease, type 2 diabetes, and some types of cancer. In addition, 6 in 10 Americans have a chronic health condition and 4 in 10 have 2 or more. And while various conditions contribute to the prevalence of these diseases, unhealthy dietary patterns and a lack of physical activity are especially important. Another health-related problem is that many low-income people simply don't have access to healthy food. FSN says that in 2018, more than 37 million people, including 6 million children, lived in households that were uncertain of having or unable to acquire, enough food to meet their needs. The federal guidance already advises consumers to choose diets higher in vegetables, fruits, nuts, legumes, whole grains, lean meats and seafood, appropriate dairy foods and unsaturated vegetable oils while reducing red and processed meats, saturated fatty acids and cholesterol, and beverages and foods with added sugars. Still, FSN notes that the guidelines don't recommend cutting out meat altogether but that meats should be lean and the portions small — no larger than the palm of your hand or your cellphone. However, some nutritionists note that alternative meats like the Impossible Burger and Beyond Meat burgers are highly processed and made with a lot of ingredients. And they contain a lot of sodium, which is often linked to an increased risk of high blood pressure, a major cause of stroke and heart disease. FSN says American consumers are increasingly seeking out “natural” foods — that is, foods without a long list of ingredients and choosing “nutrient-dense” foods that provide substantial amounts of vitamins and minerals (micronutrients) and relatively few calories compared to forms of the food that have solid fat and/or added sugars. FSN also points out that Impossible Foods CEO Pat Brown argues that that the critics of plant-based meats are missing the point and that “our product is substantially better for the consumer than what it replaces,” he said. These new plant-based burgers and other meat options are actually directed toward meat-eaters, especially since vegetarians make up only 3% of the U.S. population. According to a long-term study published in the Journal of the American Medical Association Internal Medicine, swapping only 3% of total calories in the diet from animal to plant protein was found to be linked to a 10% decrease in the risk of death. As for the guidelines, Michele Simon, executive director of the Plant-Based Foods Association said she is pleased to see the Advisory Committee follow the science and recommending a mostly plant-based diet while reducing saturated fats as well as red and processed meats. But when asked if the dietary guidelines should include recommendations in favor of plant-based meats, she thinks that the ball is in the consumer's court. “We are pleased that the recommendations follow the science that we should all reduce our meat intake,” she said, “however consumers should choose whether to make that change in their diets.” So, we will see. The current crop of alternative meat products seem to be much more competitive with livestock and meat products than those developed earlier. Still, it will be necessary for them to compete economically as well as on the basis of taste and nutrition — a process that will take some time, and which producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Thursday August 27, 2020 |
Rise in Food Prices Pauses, But Still Above-Average For 2020 Consumers caught a break at the grocery store as food at home prices were down 1% in July compared with June, even though they still are up an average of 3.1% so far this year compared with 2019. Even as food prices have fluctuated, USDA's Economic Research Service (ERS) still forecasts the Consumer Price Index (CPI) for food at home will increase from 2.5% to 3.5% in 2020 versus 2019, unchanged from their month-ago outlook. But that is still considerably above the 20-year average of a 2% increase. Food away from home (restaurants) rose 0.5% in July from the June level, the ERS said, and they are up an average of 2.4%. For all of 2020, USDA forecasts an increase of 1.5% to 2.5%, below the 20-year average for an increase of 2.8%. Overall food prices are forecast to rise 2% to 3% in 2020 from 2019 levels, slightly above the 20-year average of 2.3%. The prices for all food fell 0.3% in July from June but have increased an average of 2.8% so far this year.
| Rural Advocate News | Thursday August 27, 2020 |
CFAP 2 Still Aimed for Early September A second installment of farmer payments via the Coronavirus Food Assistance Program (CFAP) is still on tap to be unveiled in early September, according to USDA Secretary Sonny Perdue. In a briefing with reporters on an unrelated topic, Perdue was asked about how USDA would be utilizing the additional $14 billion in authority available to the agency under the Commodity Credit Corporation (CCC). The additional CCC monies “will be used in the CFAP 2,” Perdue said, echoing comments he made previously on AgriTalk that a second round of the program was on tap. While there has been pressure on USDA for the dates it used to determine payments under the initial CFAP effort, Perdue suggested one reason for the April 15 cutoff was “to get money out quickly.” He said USDA is looking at the cutoff going forward and also highlighted moves by the department to cover more commodities under the program and the recent decision issue the final 20% payments to producers under the initial CFAP effort. Information on the second CFAP effort could come “very shortly after Labor Day,” Perdue said.
| Rural Advocate News | Thursday August 27, 2020 |
Thursday Watch List Markets Thanks to China's recent buying spree, Thursday morning's weekly export sales report will get plenty of attention at 7:30 a.m. CDT and be joined by weekly U.S. jobless claims, a second estimate of second-quarter U.S. GDP and an update of the U.S. Drought Monitor. Natural gas inventory is released at 9:30 a.m. and the latest weather forecasts will offer an update of rain expectations from Hurricane Laura. Weather Hurricane Laura will bring heavy rain and high winds into portions of the Deep South Thursday. Some of this moisture will also work into the southeastern Midwest. Other primary crop areas will continue to be dry. Temperatures again have a very warm to hot trend for all but far northern areas.
| Rural Advocate News | Wednesday August 26, 2020 |
China, Lighthizer Talk Trade Agreement China reaffirmed this week its commitments included in the Phase 1 trade deal. The pledge comes out of a conversation between U.S. Trade Representative Robert Lighthizer and Chinese trade officials, the first formal dialogue since early May, according to Reuters. In a statement following the call, Lighthizer says, “Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement.” The call was scheduled for August 15, the six-month anniversary of the trade deal, but both sides offered conflicting statements about why the original call was canceled. China cited scheduling conflicts, while President Donald Trump claimed he canceled the meeting himself. China's pace of purchasing U.S. ag commodities is lagging from expectations, leaving some questioning if China will follow through. The USTR statement continues, “The parties also discussed the significant increases in purchases of U.S. products by China as well as future actions needed to implement the agreement.” ************************************************************************************ Trump Announces More Funding for Food Box Program President Donald Trump Monday announced an additional $1 billion for the Farmers to Families Food Box program. The announcement came the same day Trump secured the Republican nomination to run for another term. The Department of Agriculture announced the program earlier this year, along with $3 billion in funding to help farmers and consumers during the COVID-19 pandemic. Through the program, USDA purchases food from farmers, then local distributors pack and deliver the boxes to families in need. The White House announced that the number of food boxes distributed recently reached 70 million. Trump says, “Altogether, we’ve delivered over $3 trillion in economic assistance to the American people, and the American farmer has done very well,” adding, “I never hear any complaints from the American farmer.” Trump made the comments at Flavor First Growers and Packers in Mills River, North Carolina, and was joined by Agriculture Secretary Sonny Perdue. ************************************************************************************ Iowa Lawmakers Estimate Crop Losses in Request for Relief Federal lawmakers from Iowa estimate potential derecho (Deh-RAY-cho) losses at 725 million bushels of corn, and nearly 153 million bushels of soybeans. The estimate was part of a letter sent to Agriculture Secretary Sonny Perdue recently requesting a Secretarial Disaster Designation for 57 Iowa counties. The lawmakers say the severe storm swept through much of Iowa with sustained winds in excess of 100mph. Within the requested 57 counties, there are 8.2 million corn acres and 5.6 million soybean acres. Based on satellite imagery and preliminary storm reports, approximately 3.57 million acres of corn and 2.5 million acres of soybeans can be seen to be severely damaged, with millions more acres affected to varying degrees. Iowa producers have also suffered significant damage to homes, grain bins, barns, and other infrastructure critical to their farming operations and livelihoods. The lawmakers say, “It is critical that you grant this Secretarial Disaster Designation that will make these producers eligible for resources that will help mitigate these significant losses.” ************************************************************************************ Ethanol Groups File Court Briefing Supporting Year-round E15 Responding to the oil industry’s effort to undermine the expansion of E15, ethanol groups filed a court brief supporting E15. Growth Energy, the Renewable Fuels Association, and National Corn Growers Association filed the brief in the U.S. Court of Appeals for the D.C. Circuit late last week. The brief supports and defends the Environmental Protection Agency’s 2019 regulation that finally allowed year-round availability of E15. As intervenors in the oil industry’s lawsuit against EPA’s regulation allowing year-round E15, Growth Energy, RFA, and NCGA are “vigorously protecting the agency’s final rule,” which extended the Reid Vapor Pressure volatility waiver for E10 blends to E15 as well. The organizations further point out that extending the volatility waiver from E10 to E15 is appropriate because the volatility of the fuel actually decreases as more ethanol is added into gasoline beyond E10. The brief states, “This Court should not allow the petroleum industry and its allies to stymie competition in this comparatively small but important portion of the U.S. transportation fuel supply.” ************************************************************************************ USDA Assists Farmers, Ranchers, and Communities Affected by Recent Wildfires The Department of Agriculture Tuesday announced assistance for agricultural producers affected by recent wildfires. The assistance will help eligible farmers and ranchers reestablish their operations. Wildfires have burned more than two million acres, mostly in western states. Nearly 28,000 personnel from the local, state and federal levels are responding to 157 separate incidents, 95 of which are large, uncontained fires. USDA officials say more than 6,000 firefighters from the USDA Forest Service are battling wildfires alongside state and federal partners. Bill Northey, USDA Under Secretary for Farm Production and Conservation, says, “USDA is ready to offer all the assistance we can to the affected farmers, ranchers and communities to help them recover.” When major disasters strike, USDA has an emergency loan program that provides eligible farmers low-interest loans to help them recover from production and physical losses. Farmers and ranchers impacted by wildfires are encouraged to contact their local USDA Service Center to learn more. ************************************************************************************ USDA Announces Urban Ag and Innovation Grants The Department of Agriculture Tuesday announced the selection of recipients for about $4.1 million in grants and cooperative agreements for urban agriculture. Through funds come from the new USDA Office of Urban Agriculture and Innovative Production. These are the first recipients of the grants and cooperative agreements. The program supports a wide range of activities through two grant types, which are Planning Projects and Implementation Projects. Activities include operating community gardens and nonprofit farms, increasing food production and access in economically distressed communities, providing job training and education, and developing business plans and zoning. Priority was given to projects located in or targeting an Opportunity Zone, which is a census tract designation for low-income communities. The Office of Urban Agriculture and Innovative Production was established through the 2018 Farm Bill and is led by USDA’s Natural Resources Conservation Service For a complete list of grant and cooperative agreement recipients and project summaries, visit farmers.gov/urban.
| Rural Advocate News | Wednesday August 26, 2020 |
Washington Insider: Great Inflation Debate Heats Up Hardly any question carries greater weight in economics right now, or divides the financial world more sharply, than whether inflation is on the way back, Bloomberg explains in an article this week. One camp is convinced that the no-expense-spared fight against COVID-19 has put developed economies on course for rising prices on a scale they haven't seen in decades. The other one says the virus is exacerbating the conditions of the past dozen years or so--when deflation, rather than overheating, has been the big threat. For now, the jury is out, Bloomberg says. And, the data that will ultimately settle the question could take years to trickle in. In the meantime, investors and the public are left to weigh the arguments. Bloomberg presents what it calls some of the “main ones.” The idea that the money supply affects prices directly is still a widely held view. And those who hold it are pointing to the wave of money created by governments to fight the pandemic–-and predicting that sooner or later it will wash through the whole economy and push prices up. In many countries, money supply is growing at some of the fastest rates on record and unlike a decade ago, when a similar infusion of money never moved much beyond banks' balance sheets, there are signs this time around the cash is making its way into the pockets of consumers and companies. Bloomberg thinks that it is “the use of money, not just its creation, that affects prices.” That's one explanation for subdued inflation since 2008, even as central banks cranked up the printing presses. And the same forces may still be at work. In the U.S. the “velocity” of money — the frequency with which it changes hands, as people use it to buy goods and services — fell off in the 2008 financial crisis, never really recovered, and has collapsed to unprecedented lows now. “The link between money supply and inflation is still very tenuous,” says Derek Tang, an economist at LH Meyer/Monetary Policy Analytics in Washington. “We may have a ton of money supply. But that's not necessarily going to lead to a ton of inflation.” Observers argue that spending may bounce back faster than it did after 2008 and drive prices higher because a more aggressive policy response has cushioned the blow to household finances. Stock markets have taken months instead of years to recover. Home prices didn't take much of a hit. And lower down the income ladder, governments have provided substantial support to workers who got furloughed or fired. “We're clearly not back to normal in the short term until people spend the money that the Fed has created and the government has sent them,” says John Ryding, chief economic advisor at Brean Capital. Policy makers often cite a trade-off between inflation and unemployment—the idea that prices will only face sustained upward pressure when the economy is using all its resources, including labor. The strength of that link is uncertain, but “if there's any connection at all, then it should ease concerns about inflation.” Employment everywhere has slumped, with little prospect of a quick rebound to pre-pandemic levels. Bloomberg already sees evidence that disruptions to supply chains are pushing prices up, however. In China, for example, food inflation has been accelerating in the last couple of months, and a squeeze on imports because of the pandemic is one reason why. The long-run risk is that the virus will escalate tensions like the ones behind the U.S.-China trade war. Governments may become more reluctant to rely on other countries for strategic goods, such as masks and medicine or computer chips. They could pressure business to bring manufacturing home, even when it's more expensive. The fight against COVID-19 has often been compared with an actual war, the kind of disaster that historically has triggered inflation. But there's an important difference, Bloomberg says. Military conflicts wreck the supply side of the economy leading to bottlenecks and shortages that push prices up. The coronavirus has left those facilities intact — even if they're not being used right now. In a pandemic, it's demand that takes the main hit, says Alicia Garcia Herrero, chief Asia Pacific economist with Natixis SA. “Capital is not destroyed or depleted, so it is much easier to end up with excess capacity,” she says. That distinction is one reason she's “in the deflation camp.” So, we will see. While there is still strong concern about the possible impacts of high debt levels, there seems to be much broader tolerance among the public than there was as recently as a decade ago. Certainly, high inflation is deeply dreaded as it has always been, but so is the opposite — especially, unemployment and job loss. Thus, the “inflation debate” is more important than usual and should be watched closely by producers as it intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday August 26, 2020 |
CFAP Payments Rise To $9.222 Billion Payments under the Coronavirus Food Assistance Program (CFAP) increased to $9.222 billion as of August 24, up from $9.02 billion the prior week. Payouts for livestock remain the highest at $4.607 billion, with $2.425 billion for non-specialty crops, $1.699 billion for dairy and $479 million for specialty crops. By commodity, USDA said that $3.992 billion has gone for cattle, $1.699 billion for dairy, $1.634 billion for corn, $573.8 million for hogs, $466.8 million for soybeans and $237.7 million for upland cotton. No other commodities have seen payments totaling $100 million or more. Iowa still tops the list of states receiving CFAP money at $921 million, followed by Nebraska at $664 million, Minnesota at $573 million, Texas at $544 million and California at $515 million.
| Rural Advocate News | Wednesday August 26, 2020 |
US, China Hold Phase One Discussion U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steve Mnuchin and Chinese Vice Premier Liu He held discussions via telephone Monday evening, Washington time, to assess the status of the Phase One trade agreement between the two countries. A statement from the Office of the U.S. Trade Representative (USTR) said the “regularly scheduled call” saw the parties discuss “steps that China has taken to effectuate structural changes called for by the Agreement that will ensure greater protection for intellectual property rights, remove impediments to American companies in the areas of financial services and agriculture, and eliminate forced technology transfer.” The discussions also covered the “significant increases in purchases of U.S. products by China as well as future actions needed to implement the agreement.” The Xinhua News Agency said the discussion was a “constructive dialogue on such issues as strengthening bilateral coordination of macroeconomic policies and the implementation of the China-U.S. phase-one economic and trade agreement.” Both the U.S. and Chinese side said they were committed to implementing the trade deal. USTR said the two sides “see progress and are committed to taking the steps necessary to ensure the success of the agreement,” while Xinhua reported the two countries “agreed to create conditions and atmosphere to continue pushing forward the implementation of the trade deal.”
| Rural Advocate News | Tuesday August 25, 2020 |
Rural Mainstreet Index Inches Up in August; Still Negative The Creighton University Rural Mainstreet Index increased slightly in August from July’s weak index number. A monthly survey of bank CEOs in rural areas of a 10-state region that depends on agriculture and energy shows the August index is the sixth-straight month of a number below growth-neutral. The August index showed a slight increase at 44.7, up from July’s 44.1. However, that number is still in a recessionary economic zone. It was still a significant increase from the record-low in April of 12.1. The index ranges from 0 to 100, with an index of 50 representing growth neutral. “Farm commodity prices are down by 10.4 percent over the past 12 months,” says Dr. Ernie Goss, who oversees the Rural Mainstreet Index. “Despite the input of $32 billion in USDA farm support payments this year, only eight percent of bankers reported their area economy had improved compared to July, while 18 percent say economic conditions have gotten worse.” Along those same lines, the farmland price index rose above growth neutral for only the second time in the last 81 months, with the August reading at 50.1, up from July’s 45.6. The August farm equipment-sales index dropped to 32.8 from 34.4 in July. ********************************************************************************************** Peterson Wants Clarification on CFAP Payment Methodology Late last week, House Ag Committee Chair Collin Peterson sent a letter to Ag Secretary Sonny Perdue on the Coronavirus Food Assistance Program. He’s asking for clarification on how USDA determined the eligibility of different crops, livestock, and poultry species under CFAP. In the letter, Peterson contends that the data used by USDA to calculate CFAP payments was limited to only the earliest parts of the pandemic, missing the full extent of damage to specific commodities. “Some would argue that the full agricultural market impacts of the closure of schools, restaurants, catering, and agricultural processing facilities due to COVID-19 were not fully realized during the CFAP covered period, with losses for many commodities extending well into the second and third quarters of this year,” writes Peterson. The ag chair also took issue with the reasons that certain commodities were denied payments. “Hundreds of commodities were denied eligibility for ‘insufficient data’ and ‘lack of information,’ though it would seem that the well-documented shutdown of school meals, restaurants, and foodservice demand would have impacted those food crops, and the loss of export, landscape, and retail markets for no-food crops and livestock/poultry,” he adds. “I trust USDA is working to assist producers who’ve been denied to this point.” ********************************************************************************************** Lighthizer Promises Help for Southeast Tomato Growers U.S. Trade Representative Robert Lighthizer promises tomato growers in the southeast United States that he will address their concerns about imported Mexican tomatoes. Trade Vistas Dot Com says American producers are upset about the surging numbers of Mexican tomato imports under the U.S.-Mexico-Canada Agreement on trade. The United States is the second-largest producer of tomatoes in the world, but with each American eating an average of more than 20 pounds of tomatoes every year, imports are necessary to satisfy the high demand. Mexico is the largest exporter in the world and the top international supplier to the U.S. Fresh produce growers in the Southeast U.S. say Mexico is continuing to undercut their prices, dumping cheap fruits and vegetables into the U.S. market during their peak harvest time. The USDA and the Department of Commerce recently held two hearings to collect feedback on whether trade policies are harming America’s seasonal produce growers. Following those hearings, Lighthizer says he is working with Ag Secretary Perdue and Commerce Secretary Wilbur Ross to come up with a plan to address grower concerns by September 1. ********************************************************************************************** USDA Programs Ready to Assist Those Impacted by Tropical Storms Marco and Laura The USDA is reminding communities, farmers and ranchers, families, and small businesses in the path of Tropical Storms Marco and Laura that they have assistance programs to help. USDA staff in regional, state, and county offices are ready and eager to help in the wake of natural disasters. USDA partnered with the Federal Emergency Management Agency and other disaster-focused organizations to create the Disaster Resource Center. The center’s website and web tool now provide an easy access point to find USDA disaster information and assistance. The USDA also developed a disaster assistance discovery tool specifically targeted to rural and agricultural issues. The tool walks producers through five questions that generate personalized results identifying which USDA disaster assistance programs can help them best recover from a natural disaster. USDA also encourages residents and small businesses in impact zones to contact their local USDA offices to help meet their individual needs. The USDA’s Animal and Plant Health Inspection Service is urging those in the potential path of the storms to prepare now, not just for yourselves but for livestock and pets too. ************************************************************************************ July Cattle Numbers in Feedlots 11 Percent Higher Than 2019 The USDA says placements of cattle in feedlots during July totaled 1.892 million head, 11 percent higher than in July of 2019. That number is larger than what industry experts had predicted going into last Friday’s report. Feeding operations needed supplies, especially cattle that could be turned around in a short time. Most of the placements weighed between 700 and 900 pounds. The cattle placed in July will be marketed through the winter and into early spring. By weight, placements of cattle less than 600 pounds totaled 420,000 head. Placements between 600 and 699 pounds were 315,000 head, and placements of cattle between 700 and 799 pounds totaled 435,000 head. In the heavier weights, cattle between 800 and 899 pounds numbered 458,000 head, 900 to 999-pound cattle totaled 195,000 head, and 70,000 of those placements totaled more than 1,000 pounds. July cattle marketings were 1.99 million head, one percent lower than last year. The total number of cattle on feed as of August 1 was 11.284 million head, two percent above 2019, and the highest inventory for the month since the series of reports first began in 1996. Nebraska was among the highest states with 2.22 million cattle on feed. ********************************************************************************************** Livestock and Sportsmen Groups Enter Historic MOU on Conservation The National Cattlemen’s Beef Association and the Public Lands Council signed a Memorandum of Understanding with Ducks Unlimited and Safari Club International. The MOU outlines the groups’ shared commitment to the conservation of natural resources through sustainable multiple uses. The agreement also outlines the groups’ efforts to cultivate healthier ecosystems, wildlife populations, and economies through active management. Hunting, fishing, and livestock grazing are all key components of successful, comprehensive management plans for the nation’s public lands and resources. The MOU also highlights decades of successful voluntary conservation programs and formalizes a partnership to allow these groups to coordinate multi-sector projects in the future. “One thing cattle producers and the sportsmen communities have in common is a shared commitment to being good stewards of the land,” says NCBA President Marty Smith. PLC President Bob Skinner says, “Ranchers are true conservationists and we’re proud to partner with groups whose members also work to protect open spaces and manage our country’s natural resources for a better future.”
| Rural Advocate News | Tuesday August 25, 2020 |
Washington Insider: New Asian Trade Alliance Considered India is already seeing some success luring supply chain investments away from China, and is considering teaming up with Japan, Australia and others to counter Chinese dominance as trade and geopolitical tensions escalate across the region, Bloomberg explains. Bloomberg calls the three interested countries export powerhouses and says they are discussing a “supply resilience initiative.” The talks are now at a working level but Japan would like to elevate them. Even without the other two nations, India's latest set of incentives to entice businesses away from China “seems to be working,” Bloomberg says, with companies from Samsung to Apple's assembly partners showing interest. Prime Minister Narendra Modi's government in March announced incentives that make electronics manufacturers eligible for a payment of 4%-6% of their incremental sales over the next five years. About two dozen companies pledged $1.5 billion in investments to set up mobile-phone factories in the country. Besides Samsung, those that have shown interest include Wistron, Pegatron and Foxconn. India has also extended similar incentives to pharmaceutical businesses. The group “plans to cover more sectors, which may include automobiles, textiles and food processing,” Bloomberg says. Numerous countries in Asia and elsewhere have been actively looking to diversify supply chains amid the U.S.-China trade tensions and the coronavirus outbreak – conditions that are making it cheaper for businesses to open shop. Vietnam remains the most favored investment destination, followed by Cambodia, Myanmar, Bangladesh and Thailand, according to a survey by Standard Chartered. The incentives would help bring an additional investment of $55 billion over five years, adding 0.5% to India's economic output, according to analysts led by Neelkanth Mishra at Credit Suisse. The latest output-linked incentive plan is a “win for Make in India,” Amish Shah, an analyst at BofA Securities, said in a report to clients. He sees gains for industrials, cement, pharmaceuticals, metals and logistics, with long-term indirect benefits across many sectors. Meanwhile, the campaign of U.S. President Trump, who is vying for re-election in November, just released a second-term agenda that includes a goal of bringing back 1 million factory jobs from China and offers “Made in America” tax credits. The Congressional Research Service (CRS) reported last week that since the COVID-19 outbreak was first diagnosed, it has spread to over 200 countries and all U.S. states. In addition, CRS says the pandemic is negatively affecting global economic growth “beyond anything experienced in nearly a century.” Estimates so far indicate the virus could trim global economic growth by 3.0% to 6.0% in 2020, with a partial recovery in 2021, “assuming there is not a second wave of infections.” Still, the economic fallout from the pandemic raises the risks of a global economic recession with levels of unemployment not experienced since the Great Depression of the 1930s. The report emphasizes the “human costs in terms of lives lost” that will permanently affect global economic growth in addition to the cost of rising levels of poverty, lives upended, careers derailed, and increased social unrest. Global trade could also fall by 13% to 32%, exacting an especially heavy economic toll on trade-dependent developing and emerging economies. CRS says the full impact of these trends will not be known until the effects of the pandemic peak. The report provided details and an overview of the global economic efforts and costs to date and response by governments and international institutions to address the pandemic impacts. Policymakers and financial and commodity market participants generally have been hopeful of a global economic recovery starting in the third quarter of 2020. Some forecasts, however, raise the prospects that the pandemic could negatively affect global economic growth more extensively and for a longer period of time with a slow, drawn-out recovery. Without a quick resolution of the health crisis, the economic crisis may persist longer than most forecasters have assumed, CRS says – and it may require policymakers to weigh the most effective mix of additional fiscal and monetary policies that may be required without the “benefit of a relevant precedent to follow.” Additional measures “may have to balance the competing requirements of households, firms, and state and local governments. CRS says. Various U.S. states reversed course in late June to impose or reimpose social distancing guidelines and close down businesses that had begun opening as a result of a rise in new confirmed cases of COVID-19, raising the prospect of a delayed recovery, CRS said. So, we will see. Certainly, the impacts of the pandemic are continuing to be both enormous and difficult to evaluate – efforts producers should watch closely as they are debated and implemented, Washington Insider believes.
| Rural Advocate News | Tuesday August 25, 2020 |
US, EU Reach Lobster Trade Deal U.S. and European Union (EU) officials said Friday they reached agreement on a plan for the EU to lower tariffs on imports of lobster from the U.S. and other suppliers, with the U.S. agreeing to lower duties on a list of other items of equal value. EU Trade Commissioner Phil Hogan announced the action even as some indicated they had hoped the issue might be dealt with in broader negotiations between the two sides. But those trade negotiations are proceeding very slowly as the U.S. is currently focused on a trade deal with the UK over one with the broader EU. Still, the U.S. lobster industry is welcoming the development with their attention also on the trade situation with China.
| Rural Advocate News | Tuesday August 25, 2020 |
House Ag Chair Raises Questions on CFAP House Agriculture Committee Chairman Collin Peterson, D-Minn., is asking USDA to clarify its eligibility standards for the Coronavirus Food Assistance Program (CFAP), writing USDA Secretary Sonny Perdue in an August 21 letter. Peterson said that he viewed the data used by USDA as only considering the earliest parts of the pandemic, missing the full extent of damage to different commodities. “Some would argue that the full agricultural market impact of the closure of schools, restaurants, catering, and agricultural processing facilities due to the COVID-19 public health crisis were not fully realized during the CFAP covered period, with losses for many commodities extending well into the second and third quarters of this year,” Peterson said. He also raised questions about commodities that were not deemed eligible under CFAP. Hundreds of commodities were denied CFAP eligibility for “insufficient data” and “lack of information,” though it would seem that the “well documented shut-down of school meals, restaurants, and food service demand would have impacted those food crops, and the loss of export, landscape, and retail markets for the non-food crops (e.g., pima cotton) and livestock/poultry,” he wrote. “And, producers of processed food commodities (e.g., raisins) and aquaculture seem to have been completely excluded from the program.”
| Rural Advocate News | Monday August 24, 2020 |
Pro Farmer Predicts Record Yields Pro Farmer estimates a 14.8-billion-bushel corn crop, with an average yield of 177.5 bushels-per-acre. For soybeans, Pro Farmer estimates a 4.3-billion-bushel crop with an average yield of 52.5 bushels-per-acre. Pro Farmer released the projections Friday following its annual Midwestern Crop Tour. Both corn and soybean yield estimates would be record crops, but not as big as projected by the Department of Agriculture earlier this month. Pro Farmer trimmed 525,000 from harvested acres, 300,000 coming from Iowa. The Iowa cut stems from the derecho (der-ray-cho) storm that destroyed crops this month, but the bigger concern for the state is drought. Pro Farmer pegged Iowa corn yields at 180 bushels-per-acre, and soybeans at 55 bushels-per-acre. The week long tour found Illinois has the best-projected corn yield at 205 bushels-per-acre, and the top projected soybean yield at 62 bushels-per-acre. The tour samples corn and soybean crops in Illinois, Indiana, Iowa, Minnesota, Nebraska, Ohio and South Dakota. ************************************************************************************ Coronavirus Aid Delayed, Likely Won’t Include Ag Provisions Congress won’t consider any coronavirus relief until September, and the streamlined package won’t likely include agriculture. Senate Republicans indicate they plan to introduce a “skinny” bill next month, according to the Hagstrom Report. The Senate returns to session on September 8, and the House has scheduled to return for committee meetings on September 8, with the full House returning to session September 14. The delay sets up speculation the general coronavirus aid may be included in spending bills Congress must pass by September 30, the end of the current fiscal year. Congress must also pass the spending bills to avoid a government shutdown. Many in agriculture agree more aid is needed for farmers and ranchers facing losses from the COVID-19 pandemic. The failed HEALS Act in the Senate would have provided an additional $20 billion for agriculture. The CARES Act included $14 billion for agriculture, and the Coronavirus Food Assistance Program includes $16 billion for agriculture. ************************************************************************************ China, U.S. Trade Talks Coming More trade talks between China and the U.S. are on the horizon. However, the questions of if and when remain. Last week, the Trump administration declined to confirm any plans to meet with China regarding the Phase 1 trade deal. According to Reuters, a spokesperson for China’s Commerce Ministry last week stated bilateral talks would be held "in the coming days" to evaluate the agreement's progress. Previously planned for August 15, China claims the meeting was moved due to a scheduling conflict. Yet, President Donald Trump claims he canceled the meeting, because, he says, “I don’t want to deal with them now.” China is buying more U.S. commodities, a promise made in the Phase 1 agreement. However, the most recent data suggests China is behind pace to fulfill its commitments. China has committed to buying more new crop soybeans and sorghum from the United States. And, while China is purchasing more U.S. new crop corn, the purchases still lag from prior levels. ************************************************************************************ NCGA: Communication Key for Successful 2020 Harvest Amid the COVID-19 pandemic, communication is the key to a successful harvest this fall, according to the National Corn Growers Association. Jeff Bender, director of the Upper Midwest Agricultural Safety and Health Center, tells NCGA following CDC guidelines, including social distancing, remains important even if your community has not had a COVID-19 diagnosis. However, most importantly, communication is the key this year. That means talking with delivery points this fall. NCGA suggests farmers should be asking about local and state regulations affecting operations, delivery protocols and delivery scheduling. Additionally, you should ask if there will be an open office and how you will receive a delivery ticket, among other questions regarding new technology and customer information. Also, don’t forget general safety, either. A large crop often translates into longer days and increased logistics. The hectic work schedule can lead to problems with fatigue, loss of concentration and injuries. Bender says, “Throughout harvest, be respectful of others' safety and remember it's about everyone's health, business continuity and community.” ************************************************************************************ USDA Announces Public Meeting on Salmonella: State of the Science The Department of Agriculture’s Food Safety and Inspection Service will host a virtual public meeting on Salmonella next month. Federal agencies included in the meeting will discuss the commitment to reduce pathogen contamination to decrease salmonella infections associated with regulated food items. The week before the public meeting, USDA's Office of Food Safety will release the “Roadmap to Reducing Salmonella: Driving Change through Science-Based Policy,” which outlines how USDA will advance programs and policies that are science-based, data-driven, and promote innovation to reduce Salmonella in meat, poultry, and egg products. Salmonella is a foodborne pathogen of concern in multiple FSIS-regulated food products. To address foodborne sources of Salmonella, FSIS is committed to aggressively targeting Salmonella in regulated meat, poultry, and processed egg products through various strategies and initiatives. The virtual public meeting will be held on September 22, 2020, from 9:00 a.m. to 3:15 p.m. ET. Registration information is available at fsis.usda.gov. ************************************************************************************ USPS Delays Deliver Dead Chicks to Small Poultry Farmers Poultry farmers say postal service delays are causing deliveries of live chicks to result in dead chicks. Shipping of live chicks is common through the United States Postal Service. However, Maine poultry farmer Pauline Henderson says delays in shipping resulted in 800 dead chicks at her farm. She told local media the dead birds she received shipped in the normal amount of time but were apparently mishandled. Farmers like Henderson allege recent operation overhauls, including cuts in sorting equipment, have made USPS an unreliable shipper for live chicks. The Portland (Maine) Press-Herald reports thousands of birds that moved through the Postal Service’s processing center in Shrewsbury, Massachusetts, all met the same fate, affecting several farms in Maine and New Hampshire. Representative Chellie Pingree, a Maine Democrat, penned a recent letter to the USPS and Agriculture Secretary Sonny Perdue. Pingree alleges the Trump administration “attacks on the Post Office are devasting small farmers.” Pingree is among the many Democrats calling for the removal of Postmaster General Louis DeJoy.
| Rural Advocate News | Monday August 24, 2020 |
Washington Insider: USDA Pushes Back at Food Program Effort Bloomberg is reporting this week that Ag Secretary Sonny Perdue, facing bipartisan congressional pressure to maintain expanded food options for children during the coronavirus pandemic, is rejecting a move he said would amount to “a universal school meals program.” With the fall semester kicking off both virtually and in-person, lawmakers want all options on the table if classrooms are forced to lock their doors once more. That concern turned reality over the past few weeks for schools from Michigan to Mississippi, Bloomberg says. House Education and Labor Chairman Bobby Scott, D-Va., and Senate Agriculture, Nutrition, and Forestry ranking member Debbie Stabenow, D-Mich., whose panels oversee school food programs, have called for the extension of two programs that provide free meals to children in low-income areas when school is out. The Summer Food Service Program and the Seamless Summer Option operate not only over summer break, but also during unanticipated closures — such as when schools shuttered in the spring due to COVID-19 outbreaks. Perdue rejected the request to renew all nationwide waivers for unexpected closures through the next school year. “Americans are a generous people, and there are already opportunities for breakfast, lunch, and snacks, and weekend meals for children in need,” he said in a Thursday letter. “While we want to provide as much flexibility as local school districts need during this pandemic, the scope of this request is beyond what USDA currently has the authority to implement and would be closer to a universal school meals program which Congress has not authorized or funded,” Perdue added. Program advocates criticized the USDA position. “The tragic rise in child hunger across the country will surely get worse,” Scott said last week. He called Perdue's decision “irresponsible.” The Agriculture Department can extend the waivers under the Families First Coronavirus Response Act Scott and Stabenow said in an Aug. 14 letter. Perdue countered that his agency continues to “utilize all options within our statutory and budget authority and with the funding that Congress provided” with the third coronavirus stimulus law. He offered the department's technical assistance if Congress were to pursue an expanded program. The administration has issued extensions for other nationwide waivers, allowing meal service outside of traditional times and in nongroup settings for the 2020-2021 school year. The USDA didn't renew a waiver for the area eligibility requirement, which limits “open site” meal service for summer meals programs to places where at least half the children are in low-income households. Democrats aren't alone in calling for USDA action, Bloomberg said. In fact, Senate Agriculture Chairman Pat Roberts, R-Kan., spearheaded a recent letter from 20 GOP senators asking Perdue to use waivers, grants, or reimbursements to allow schools and sponsor organizations to feed students learning both in-person and remotely. “As the school year begins, the challenges brought on by the COVID emergency persist,” they wrote. Expanded food options have “broad bipartisan support,” said Sen. Tina Smith, D-Minn., an Agriculture Committee member who signed a similar July 29 letter from more than 30 senators, arguing that the president's attempt to bypass Congress on stimulus is offering only limited economic relief, the Washington Post reported this weekend — suggesting that efforts to increase antivirus programs are increasingly supported. The food programs are but two of the numerous programs that are being challenged during the current outbreak. For example, Democrats have not restarted meaningful economic relief negotiations since the President's recent executive actions and congressional aides do not expect talks to resume until after Labor Day, the Post says. Many economic experts say the absence of a broader economic deal with Congress is sharply limiting the recovery and is hurting unemployed Americans, given the administration's challenges in implementing new jobless benefits, the Post says. The report criticizes the administration's recent efforts aimed at bypassing stalled stimulus negotiations and argued that its directives have “produced limited economic relief for Americans hurt by the coronavirus pandemic, despite promises by top White House aides that help would come within weeks.” So, we will see. Now the political campaigns are increasingly dominating the media and ratcheting up the already high levels of toxicity. These are increasingly important fights and should be watched closely as they proceed Washington Insider believes.
| Rural Advocate News | Monday August 24, 2020 |
DEA Publishes Rule to Update Regs Based On 2018 Farm Bill The Drug Enforcement Administration (DEA) has published an interim final rule which reflects the 2018 Farm Bill provisions on hemp and reflecting Controlled Substances Act (CSA) amendments that have already taken effect, saying the changes do not add additional requirements to the regulations. The DEA said there are no additional costs resulting from these regulatory changes and they are expected to result in annual cost savings for affected entities. Comments are due by October 20.
| Rural Advocate News | Monday August 24, 2020 |
Focus On Seasonal Produce Moves to Trump Administration The Office of the U.S. Trade Representative, USDA and Department of Commerce (DOC) have received two days of testimony via hearings August 13 and 20 on the matter of imports of fresh and seasonal produce into the U.S. The sessions have seen produce growers from Florida and Georgia testify that shipments of these products from Mexico are negatively impacting U.S. growers, but also that the produce industry and others indicate the situation merely is a case of market competition and not trade-distorting efforts by Mexico. The administration has pledged to develop a policy response by September 1. Special Ag Trade Negotiator at USTR Gregg Doud remarked at the August 20 session that he was struck by the “stark contrast” between growers and other ag groups. “Everybody has put a lot of time and effort into their testimony and next step is for the administration to put time and effort into how to move this forward and that's exactly what we will do,” he said. USDA Secretary Sonny Perdue acknowledged the issue has been “one of the most frustrating things” his agency has dealt with. “Help us figure out how we can help and mitigate the issues that you're facing and the challenges you are facing with something realistic that we can do under United States law and trade policy,” Perdue urged. It remains to be seen if the administration will come back with a plan that will make it easier for U.S. produce growers to challenge imports from Mexico, a provision that was not included in the final U.S.-Mexico-Canada Agreement (USMCA).
| Rural Advocate News | Monday August 24, 2020 |
Monday Watch List Markets Checking over the latest weather forecasts is usually where traders turn first Monday, followed by the usual USDA reports. USDA's weekly grain inspections report is out at 10 a.m. CDT followed by USDA's monthly cold storage report at 2 p.m. and the crop progress report at 3 p.m. CDT. Any trade news that comes up will also be noticed. Weather Hot and dry conditions will cover most primary crop areas Monday. This combination will lead to further drying and crop stress. Southeastern U.S. areas will have periods of tropical rain as Tropical Storm Marco in the Gulf of Mexico moves closer to the mainland.
| Rural Advocate News | Friday August 21, 2020 |
Crop Tour Highlights Midwest Drought Areas The Pro Farmer Midwestern Crop Tour wrapped up Thursday after finding some unexpected drought areas. Drought conditions reported in the weekly Drought Monitor show classified droughts in The Dakotas, Western Nebraska, Much of Iowa, and small parts of Illinois and Indiana, and much of Ohio. Meanwhile, most of the Western U.S. is dry, with many severe and extreme drought classifications. While much of the attention focuses on the derecho storm that hit Iowa and other states, potentially destroying up to ten percent of the nation’s corn crop, parts of Iowa are in moderate to severe drought. Drought conditions expanded in western and northeastern Iowa in the last week. Organizers of the Drought Monitor say the expansion is in response to the short-term precipitation deficits during the past 60-day period, dry soils, and agricultural impacts. Pro Farmer scouts toured Western Iowa Wednesday, reporting lower expected yields for the region. Pro Farmer’s final national crop projections will be released Friday afternoon. ************************************************************************************ Bill Seeks Investment in Rural Public Transit Legislation introduced this week seeks to improve public transportation in rural communities. Lawmakers say the Rural Transit Act, would increase the federal contribution for operating assistance in rural areas with high transit dependency. The bill was introduced by Senators Tina Smith, a Minnesota Democrat, Tammy Baldwin, a Wisconsin Democrat, and Mike Rounds, a South Dakota Republican. The Federal Transit Administration provides grants to support rural public transportation. However, the lawmakers say it can be difficult for certain rural communities to provide the necessary local contribution to qualify for assistance. Senator Rounds says the legislation would “allow transit operators in extreme need to receive a higher federal share of operating assistance.” The bill would increase the federal share to eighty percent for operating assistance in certain areas with high transit dependency. For a transit project to qualify, it must serve a county considered an “area of persistent poverty,” with 25 percent of residents over 65 years old. ************************************************************************************ CME Amending Cattle Price Limits CME Group Thursday announced planned changes to live and feeder cattle futures price limits. Pending approval by the Commodity Futures Trading Commission, CME Group will implement the changes Monday, October 5, 2020. The changes amend daily price limits to adjust the current, initial daily price limit for Live Cattle futures from $0.03 to $0.04 per pound and for Feeder Cattle futures from $0.045 to $0.05 per pound. CME Group will maintain the existing practice of establishing expanded price limit levels at 150 percent of initial price limit levels, which will result in an increase in the expanded price limit for Live Cattle from $0.045 to $0.06 per pound and an increase in the expanded price limit for Feeder Cattle from $0.0675 to $0.075 per pound. CME Group also seeks to replace the current fixed daily price limit regimes, consisting of a fixed price limit and expansion mechanism, with a variable price limit regime that will be price-based and reset annually. ************************************************************************************ USDA Announces Prevented Planting Coverage Changes The Department of Agriculture’s Risk Management Agency this week announced changes to Federal crop insurance prevented planting coverage. RMA will implement the changes for most spring crops with prevented planting coverage, next year, and for all crops with prevented planting coverage in 2022. The changes include expanding the “1 in 4” requirement nationwide. Currently, only producers in the Prairie Pothole National Priority Area are subject to the requirement, which requires producers to plant acreage in at least one of the four most recent crop years to be eligible for coverage on those acres. RMA made several modifications to existing policy and procedures to ensure prevented planting payments adequately reflect the crops the producer intended to plant. USDA also made changes to cover second-crop plantings following the failure of the first crop in a field. Finally, USDA will allow the use of an intended acreage report for the first two years for producers in a new county, where they have never produced the crop. ************************************************************************************ USDA Report Details U.S. Potato Usage A little more than one-third of all potatoes grown in the United States are manufactured into frozen products, 85 percent of which are french-fries, according to the Department of Agriculture. USDA recently released a report on potato usage. Spurred by decades of explosive growth within the quick-service restaurant industry, processed potato products, which include frozen, chipped, dehydrated, and canned, became the major movers in the potato market, led by frozen french-fries. The share of potatoes consumed as frozen products rose from 27 percent in 1970-74 to 44 percent in 2015-2019. Research in the early 2000s indicated that quick-service restaurants alone accounted for about two-thirds of French-fry usage, with another six percent attributed to school cafeterias. The COVID-19 pandemic severely hobbled the foodservice sector, according to USDA, resulting in an abrupt slowdown in French-fry demand. In addition, exports of frozen potato products, which account for one-fourth of freezing potato utilization, remain well-below year-earlier levels. ************************************************************************************ FFA Membership Reaches Record The National FFA Organization this week announced a record-high student membership of 760,113, an increase from last year’s 700,170 members. The top five student membership states are Texas, California, Georgia, Florida and Oklahoma. Interest in FFA and agricultural education continues to grow as membership continues to increase as well as the number of chapters. This year, the organization has more than 115,831 Latino members, more than 40,000 Black members and more than 12,000 members who are American Indian and Alaska Native. Forty-four percent of the membership is female, with 51 percent of the membership being male. FFA chapters can be found in 24 of the 25 largest U.S. cities. National FFA CEO Mark Poeschl (PESH-ull) says, “as we continue to bring agricultural education and FFA to more students, we see the enthusiasm of this generation reflected in the growth of our organization.” The National FFA Organization includes more than 8,700 local FFA chapters.
| Rural Advocate News | Friday August 21, 2020 |
Washington Insider: Lack of New Subsidy Deal Concerns the Fed The Hill and other media are reporting this week that Federal Reserve officials expressed deep concerns that the steady spread of the coronavirus would continue to slow the pace of economic recovery and drive the U.S. into a much sharper downturn later this year, according to minutes from its July meeting released Wednesday. During the July 28-29 meeting of the Federal Open Market Committee—the Fed's policymaking arm — bank officials anguished over signs that the U.S. was losing ground in its fight against the pandemic and the recession it spurred. Fed leaders cited a slowdown in hiring between May and June, rising cases of coronavirus across the U.S. and the expiration of crucial fiscal stimulus as critical threats to a fragile economy severely restrained by an uncontrolled pandemic. “The path of the economy will depend significantly on the course of the virus and the ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term and poses considerable risks to the economic outlook over the medium term,” the minutes read. The readout from the Fed's July meeting is the latest window into the growing concern over the economic impact of the pandemic among central bank officials. Fed Chairman Jerome Powell and several reserve bank presidents have issued increasingly direct calls for social distancing measures, widespread mask-wearing, and other practices proven to curb the spread of the novel coronavirus. In addition, the July FOMC minutes outline the warning signs that moved Powell and other Fed leaders to speak directly about the economic necessity of a robust public health response, The Hill said. The July meeting wrapped days before a $600 boost to weekly unemployment benefits and an eviction and foreclosure ban expired, sapping fiscal support that economists considered crucial to preventing a deeper downturn. “Participants noted that the fiscal support initiated in the spring through the CARES Act had been very important in granting some financial relief to millions of families,” the minutes read. Several officials argued that extending that aid “would likely be important for supporting vulnerable families, and thus the economy more broadly, in the period ahead.” But Congress and the administration have been unable to strike a bipartisan deal ahead of the July 31 deadline and have been locked in a stalemate for weeks since. The broad disagreements among Democrats and Republicans are far greater than those between liberal and conservative economists, who largely agree on the need for another stimulus bill, The Hill said. In a separate report, The Hill took an unusually critical position regarding Congressional efforts to provide necessary support. It asserts that “majorities in the Democratic-controlled House and Republican-controlled Senate also favor spending about $100 billion to help schools and universities implement full-bore distance learning for an uncertain duration. Yet both chambers went home for August without passing such aid.” The Hill concludes that, “clearly, this isn't how our democracy is supposed to work — and the current lack of cooperation leads to the “monumental gridlock and dysfunction that has made Congress one of the least-respected and least-liked institutions in the land.” The report cites a Washington Post early August report that “the talks on Capitol Hill had a dramatic and bitter unraveling.” The parties had managed to approve earlier aid packages,” but this time, “there seemed to be little goodwill or trust, and both sides dug in even as the economic recovery showed signs of losing steam, millions of Americans remained unemployed and deaths from the novel coronavirus continued to climb.” The Hill then concludes that perhaps the most incomprehensible aspect of this behavior is that the leadership's self-imposed logjams steadily push more power and responsibility away from Congress and toward the executive branch. “We saw this when President Trump announced he would use his executive powers to shift funds (a constitutionally questionable action) to enhance unemployment benefits by $400 a week, partly replacing the $600 that has lapsed during Congress' impasses, the report said. Now, the Hill thinks that “most Americans' expectations are probably quite low” and it counsels the Congress to “just pass measures you already agree on to help the country at least begin to address its toughest problems.” So, we will see. Amid nominating conventions of both parties, a fairly new fight is focusing on how the fall elections should be held and votes cast and counted — perhaps the most contentious issue of all. These are a few of many debates and fights going on this fall that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday August 21, 2020 |
USDA Updates Payment Limits, Eligibility Rules USDA has released new rules on payment limits and payment eligibility to reflect updated provisions in the 2018 Farm Bill. The actions include that USDA may approve a waiver of the average adjusted gross income (AGI) limitation for participants of certain conservation contracts administered by the Farm Service Agency (FSA) and the Natural Resources Conservation Service (NRCS) on environmentally sensitive land. Also, the mandatory changes expand the definition of “family member” to include first cousins, nieces, and nephews. The Office of Management and Budget completed its review of the USDA plan July 29 and the final rule is published in today's Federal Register and was effective August 20.
| Rural Advocate News | Friday August 21, 2020 |
China Says Trade Confab With US On Tap In Coming Days China and the U.S. will hold trade talks on the status of the Phase One agreement between the two countries “in the coming days,” according to Chinese Commerce Ministry spokesman Gao Feng. He made the remarks during a briefing but did not offer any details, except to say, "Both parties have agreed to hold a call in the near future.” Meanwhile, White House Chief of Staff Mark Meadows said this week that no talks had been scheduled as of yet. “There are no rescheduled talks ... at this point,” Meadows told reporters. “Ambassador Lighthizer continues to have discussions with his Chinese counterparts involving purchases and fulfilling their agreements.” This comes as White House trade advisor Peter Navarro acknowledged China's stepped-up purchases of U.S. farm products as part of their commitments made under the Phase One trade deal. Chinese Ambassador to the U.S. Cui Tiankai said at a Brookings Institution event last week that U.S. needed to make decisions on bringing bilateral ties between the two countries back to a normal track.
| Rural Advocate News | Friday August 21, 2020 |
Friday Watch List Markets USDA's weekly export sales report at 7:30 a.m. CDT always gets attention, but especially during this active time of year. U.S. jobless claims and an update of the U.S. Drought Monitor are also released at 7:30. A U.S. index of leading economic indicators follows at 9 a.m. CDT and natural gas inventory at 9:30 a.m. Thursday's weather forecasts and any additional trade news will also be noticed. Weather Thursday will again be very warm and dry over all primary crop areas. Rain will be confined to light showers in the Southeast. The dry pattern is indicated to remain in place through the next seven days. Precipitation chances increase at the end of the month.
| Rural Advocate News | Thursday August 20, 2020 |
Farmer Support for Trump Remains Strong President Donald Trump trails former Vice President Joe Biden in election polls, but farmer support for Trump remains strong. A recent Pulse Poll from Farm Journal shows 82 percent of the more than 1,500 farmer respondents say they would vote for President Trump if the election were held today. Meanwhile, 13 percent say they would vote for Biden, while five percent remain undecided. Farm Journal conducted a second poll after Biden announced Kamala Harris as his running mate, where just nine percent of respondents say Harris would make them more likely to vote for Biden. Farm Journal says President Trump has enjoyed steady support in the Pulse Poll with his approval rating remaining in a range between 75 percent and 80 percent for the past year. There’s been much discussion during the Democratic National Convention this week how the party needs to engage with rural America. Former Agriculture Secretary Tom Vilsack has pleaded to the party since 2016 to engage with rural voters. ************************************************************************************ Study Shows Value of Red Meat Exports to Corn Farmers A new study shows red meat exports added 12 percent of bushel value to U.S. corn farmers in 2019. The U.S. Meat Export Federation recently updated a study on the market value of red meat exports. At an average of $3.75 per bushel, $0.46 is from red meat exports, according to the study. The results indicate that without red meat exports, corn growers would have lost $6.4 billion in corn revenue in 2019. Last year, U.S. beef and pork exports used 480 million bushels of corn. Corn revenue generated by pork exports totaled $1.8 billion. Beef and pork exports also used about three million tons of distiller’s dried grains with solubles in 2019 at an annual average price of $137 per ton. This generated $411.8 million in revenue for co-products from ethanol mills. USMEF says beef and pork exports have been the fastest-growing category of corn use since 2015. The projected market value of red meat exports to U.S. corn from 2020-2029 is $23.1 billion. ************************************************************************************ CFAP Expansion Doesn’t Include Hemp, Growers Respond U.S. Hemp growers are disappointed the recent Coronavirus Food Assistance Program commodity expansion does not include hemp. Last week, the Department of Agriculture expanded the commodities covered under the program that provides COVID-19 relief to producers. CFAP includes commodities that USDA can prove saw losses of five percent or more in the first quarter of 2020. The U.S. Hemp Growers Association says, “We believe our farmers did present evidence of losses to our growers that were five percent or more in the first quarter of 2020.” Hemp is such a newly legal crop that it does not have the advantage of data gathered by USDA agencies. Currently, the data available to understand the market is gathered privately by several data companies. USHGA believes two datasets showed a five percent pricing decrease and more in hemp and hemp products in the first quarter of 2020. The statement says, “All hemp farmers are now wondering what kind of treatment they will receive should there be future problems.” ************************************************************************************ Virtual Sustainable Agriculture Summit Announced The Sustainable Ag Summit partners announced the virtual event this week planned for November. Scheduled for November 18 and 19, the event is hosted jointly by six agricultural organizations and convenes leaders from across the agricultural value chain to create a sustainability event for production agriculture. Partners of the event include the National Pork Board, U.S. Poultry and the U.S. Roundtable for Sustainable Beef. The summit will focus on “Beyond 2020: The Next Generation of Sustainability in Action,” looking to the next generation of sustainability leadership, technologies and collaborations. The summit will cover how U.S. agriculture can deliver lasting impacts through improved productivity, profitability, resiliency and environmental outcomes. Currently, organizers are seeking proposals for event topics and sessions. Breakout Sessions should creatively showcase how challenges can be turned into opportunities by exploring projects, collaborations or successes involving multiple perspectives. Learn more about the event and its agenda, or submit a proposed session at sustainableagsummit.org. ************************************************************************************ USDA Appoints New Members to Food Safety Advisory Committees The Department of Agriculture appointed ten new members to the National Advisory Committee on Meat and Poultry Inspection this week. USDA also announced an additional new member to the National Advisory Committee on Microbiological Criteria for Foods. Under Secretary for Food Safety Mindy Brashears says the committee members “play a key role in informing USDA’s food safety decisions.” The new members include university officials and industry experts on food safety. The National Advisory Committee on Meat and Poultry Inspection was established in 1971 by USDA’s Food Safety and Inspection Service. The group is an advisory committee that advises on food safety concerns and other matters affecting inspection program activities. The National Advisory Committee on Microbiological Criteria for Foods was established in 1988. The advisory committee provides impartial scientific advice and peer reviews to food safety agencies on public health issues. The list of committee members for both is available at fsis.usda.gov. ************************************************************************************ Consumer Goods Forum Launches Food Waste Coalition The Consumer Goods Forum this week launched a CEO-led Coalition of Action on Food Waste, bringing together 14 of the world's largest retailers and manufacturers. The coalition seeks to cut global food loss at the retailer and consumer level in half. The coalition says food waste is an enormous environmental, social and economic problem. A third of food produced is never eaten, which amounts to about 1.3 billion metric tons of food lost each year. That represents an economic cost to the global economy of $940 billion. Food waste is also responsible for adding 3.3 billion metric tons of greenhouse gases into the planet’s atmosphere annually, so if food waste were a country, its carbon footprint would be third only to China and the United States. The coalition includes CEOs from General Mills, Kellogg Company, Walmart and others. The group will first collect data on food waste before forming a plan to prevent food waste.
| Rural Advocate News | Thursday August 20, 2020 |
Washington Insider: Expanding Various Aid Programs Bloomberg is reporting this week that Democratic and Republican leaders are hinting about a possible path toward reviving stalled negotiations on the next round of pandemic relief, even as the sides remain far apart. Speaker Nancy Pelosi, D-Calif., suggested during the weekend that Democrats might be willing to cut more from their proposal to reach agreement on immediate needs and -- with her party growing more confident of gains in the November elections -- return to do more after votes are cast. Treasury Secretary Steven Mnuchin and Senate Majority Leader Mitch McConnell, R-Ky., meanwhile said Pelosi's decision to break out $25 billion in funding for the Postal Service from the original Democratic relief plan could provide an opening for future talks, Bloomberg said. Although Speaker Pelosi is bringing the House back to Washington to vote Saturday on a post office bill that would prevent any cutbacks by the agency as well as provide the extra money, there was no sign McConnell would do the same. There is some suggestion that both sides “should try to come to agreement now.” The Speaker suggested Democrats might go beyond their most recent offer to trim at least temporarily the $3.5 trillion relief package the House passed in May. The Trump administration claims to see a possibility for Republicans and Democrats to agree on a smaller round of pandemic relief totaling $500 billion that would omit the biggest areas of disagreement, a senior U.S. official said Monday night. The hope was that both parties might be able to reach an accord on issues like financial help for the Postal Service, aid to schools and more money for businesses to keep their workers employed. Bloomberg also reported on another area of growing urgency — students returning to classrooms or sitting at computers for online learning who lack access to nutritious meals. Lawmakers from both parties are emphasizing this growing need in requests to USDA. “Food insecurity is skyrocketing,” said Rep. Chellie Pingree, D-Maine. “USDA must take immediate action to extend flexibilities for these programs through the next school year to ensure they're serving every kid who needs them.” Secretary Perdue's USDA has already extended nationwide waivers to permit meal service outside of traditional times and in non-group settings. Parents and guardians are also allowed to pick up their children's meals through next June, according to the department. Some lawmakers now are urging the renewal of the few remaining waivers, including several that affect low-income students. “We continue to look at all options within our statutory and budget authority to assist program operators with the challenges they are facing during the current health crisis,” Food and Nutrition Service Administrator Pam Miller said on Tuesday. “This is a very dynamic situation, so we are tracking on-the-ground conditions and working closely with our state and local partners to serve the best interests of students and families.” The latest push for USDA action came from 20 GOP senators, led by Senate Agriculture, Nutrition, and Forestry Committee Chairman Pat Roberts, R-Kan. The group pressed Perdue to use waivers, grants, or reimbursements that allow schools and sponsor organizations to feed students learning both in-person and remotely. The other 10 Republicans on the panel, including McConnell, also signed the Monday letter. The department should use its authority under the Families First Coronavirus Response Act to extend all nationwide waivers for unexpected school closures, the lawmakers said. A larger, bipartisan group of more than 30 senators echoed the waiver requests for unexpected school closures. Other waivers yet to be renewed include one for the area eligibility requirement, which typically limits “open site” meal service for summer meals programs to places where at least half the children are in low-income households. That waiver currently is extended only through Aug. 31. The department is reviewing all state waiver requests and is sharing information with Congress to ensure members understand stakeholders' specific needs, as well as the department's abilities to address those needs, USDA said Tuesday. “More students are expected to depend on school-provided meals this year due to the millions of parents and guardians who have lost their jobs during the pandemic,” said Sen. Tina Smith, D-Minn., an Agriculture Committee member who signed the letter. “I'm glad that there is broad bipartisan support behind this issue,” she added in her Tuesday statement. “Now we need Secretary Perdue to act.” So, we will see. Clearly, pressure is growing for Congressional support of many kinds in efforts to significantly offset the coronavirus impacts — and to ensure that the fall elections are conducted fairly and on schedule. At the same time, any sign of cooperation in expanding helpful programs likely will be widely noticed and welcome, Washington Insider believes.
| Rural Advocate News | Thursday August 20, 2020 |
Fed Notes Difficulties in Ag, Energy Sectors Minutes of the Federal Open Market Committee (FOMC) meeting July 28-29 saw Fed officials note the situation in the U.S. energy and agriculture sectors, with observations that the two sectors continue to struggle. “Several participants also commented on ongoing challenges facing the energy or farm sector despite recent improvements,” the minutes said. “In the energy sector, these challenges included still-low oil demand, excess inventories, and low oil prices, while in the farm sector they included low prices of some farm commodities, pandemic-related disruptions in some food processing plants, and a significant decline in demand for ethanol.” Overall, the minutes still indicated what Fed officials have signaled since that meeting – the direction for the U.S. economy remains dependent on the coronavirus and the public response to it.
| Rural Advocate News | Thursday August 20, 2020 |
Potential Movement on COVID Aid House Speaker Nancy Pelosi, D-Calif., suggested that Democrats might be willing to cut more from their proposal to reach agreement on immediate needs and return to do more later. Treasury Secretary Steven Mnuchin and Senate Majority Leader Mitch McConnell, R-Ky., said Pelosi's decision to break out $25 billion in funding for the U.S. Postal Service from the original Democratic relief plan could provide an opening for talks. However, any accord is still likely to wait until September. Pelosi said both sides “have to try to come to that agreement now.” She suggested Democrats might go beyond their most recent offer to trim the $3.5 trillion relief package the House passed in May and come back later for the rest. The Trump administration sees a possibility for Republicans and Democrats to agree on a smaller round of pandemic relief totaling $500 billion that would omit the biggest areas of disagreement, a senior U.S. official said Tuesday night. Both parties might be able to reach an accord on issues like financial help for the Postal Service, aid to schools and more money for businesses to keep their workers employed, the official said.
| Rural Advocate News | Thursday August 20, 2020 |
Thursday Watch List Markets USDA's weekly export sales report at 7:30 a.m. CDT always gets attention, but especially during this active time of year. U.S. jobless claims and an update of the U.S. Drought Monitor are also released at 7:30. A U.S. index of leading economic indicators follows at 9 a.m. CDT and natural gas inventory at 9:30 a.m. Thursday's weather forecasts and any additional trade news will also be noticed. Weather Thursday will again be very warm and dry over all primary crop areas. Rain will be confined to light showers in the Southeast. The dry pattern is indicated to remain in place through the next seven days. Precipitation chances increase at the end of the month.
| Rural Advocate News | Wednesday August 19, 2020 |
Appeals Court Rejects Dicamba Rehearing Request The U.S. Ninth Circuit Court of Appeals this week declined a rehearing request on its June dicamba decision. The decision leaves Bayer, Corteva and BASF with one final legal option to overturn the ruling vacating registration of dicamba herbicides: appealing to the Supreme Court. On June 3, the court vacated the registration for Bayer's XtendiMax, Corteva’s FeXapan and BASF’s Engenia, all dicamba-based herbicides. Last month, all three companies petitioned for a group of judges to rehear the case, known as a “rehearing in banc.” A statement from BASF to DTN says, “We are assessing additional legal options, including a challenge to the U.S. Supreme Court.” However, the ruling doesn’t apply to future registrations of dicamba herbicides, and the Environmental Protection Agency is reviewing whether or not to allow for its use in 2021. Earlier this month, a report from environmental groups stated, “EPA should not renew dicamba product registrations,” until further research shows dicamba formulations will not harm off-target plants. ************************************************************************************ House Lawmakers Introduce Helping America’s Farmers Act Lawmakers in the House of Representatives this week introduced the Helping America’s Farmers Act. The legislation would create a new economic injury disaster loan program at the Department of Agriculture’s Farm Service Agency. Introduced by Representative Jahana Hayes, a Connecticut Democrat and Antonio Delgado, a New York Democrat, the bill is endorsed by the National Milk Producers Federation and Dairy Farmers of America. The bill would appropriate $10 billion for direct loans through the FSA, along with another $10 billion for a guaranteed loan program through FSA lenders, and $300 million for administrative costs. Under the new loan program, applicants would also be eligible for a $20,000 grant upon application, and can seek forgiveness for their loan based on demonstrated economic hardship. Application priority is given to farmers and ranchers located in the areas hit hardest by an economic disaster, as well as minority, veteran and women-owned operations. Representative Hayes says the legislation will get farmers “the help they so desperately need.” ************************************************************************************ USDA NASS to Collect Additional Iowa Data for Crop Report The Department of Agriculture will collect additional harvested acreage information for corn and soybeans in Iowa in preparation for the September 11 Crop Production report. USDA’s National Agricultural Statistics Service says corn and soybeans in Iowa have been impacted by the recent derecho (Deh-RAY-cho) storm. According to Lance Honing of NASS, the additional data will help to better assess the full impact. If the newly collected data justifies any changes, NASS will publish updated harvested acreage estimates in the September report. The Iowa Department of Agriculture estimates the storm impacted approximately 14 million acres of crops. Iowa officials also say the storm damaged or destroyed 57 million bushels of licensed grain storage in the state. And, tens of millions of bushels of on-farm storage were also lost during the storm, which may create grain storage challenges as farmers prepare for harvest. President Donald Trump visited Iowa Tuesday, telling local officials, "We are going to help you recover.” ************************************************************************************ USDA Awards Contracts for RFID Ear Tags The U.S. Department of Agriculture recently awarded contracts to purchase up to eight million radio frequency identification ear tags. USDA’s Animal and Plant Health Inspection Service says the RFID tags will help increase overall animal disease traceability in cattle and bison. The contract allows APHIS to purchase additional tags each year for up to five years. USDA Under Secretary for Marketing and Regulatory Programs Greg Ibach (EYE-baw) says, “This will not only help offset the costs of switching to RFID tags, but also help us more quickly respond to potential disease events." USDA believes RFID devices will provide states and the cattle and bison industries with the best opportunity to rapidly contain the spread of high economic impact diseases. As part of its overall effort to increase traceability in cattle and bison, APHIS distributed more than 1.1 million RFID tags to 38 states between this past spring. Each state veterinarian distributes the tags in a way that best serves their industry. ************************************************************************************ Appeals Court Rules in Favor of Farmobile in the Farmers Edge Lawsuit The U.S. Eighth Circuit Court of Appeals this week unanimously ruled in favor of Farmobile in an appeal brought by Farmers Edge regarding secret theft, breach of contract and breach of loyalty. Farmers Edge had sued Farmobile, along with its founders, in the U.S. District Court for the District of Nebraska. The circuit court found that the Nebraska Court ruled correctly in denying Farmers Edge relief. Specifically, the court determined that the facts did not support the remaining claims made by Farmers Edge. The lawsuit began in 2016 when Farmers Edge claimed Farmabile misappropriated trade secrets under Nebraska law and violated certain contract terms. As announced last week, Farmobile continues to enforce its patent in a lawsuit filed against Farmers Edge in the Federal Court of Canada. That case is set for trial beginning on April 19, 2021. Farmers Edge and Farmobile both provide farmers with data and field analysis options. ************************************************************************************ Consumer Pandemic Shopping Trends Here to Stay Purchasing in bulk and online are trends here to stay, according to new consumer-based research. A global study from Momentum Worldwide reveals that only 16 percent of shoppers said they would immediately go back to the way things were before the pandemic. The trends present challenges in marketing and packaging of consumer goods and grocery items. The survey found 84 percent of consumers now shop online. However, 76 percent say they miss casually browsing, even at the grocery store. The results also found 61 percent of consumers plan to do more cooking at home and 60 percent plan to eat healthier. The trends are changing, perhaps permanently, shopping experiences and expectations. The survey found 62 percent of consumers plan to buy more groceries online after the pandemic, and 59 percent say they will purchase more home goods online post-pandemic. Though, 25 percent of consumers say they will leave online grocery shopping after the pandemic.
| Rural Advocate News | Wednesday August 19, 2020 |
Washington Insider: Politicizing Food Boxes and Other Fights In this season of party conventions, POLITICO is reporting that USDA is facing fresh scrutiny over its practice of inserting signed letters from President Trump into food boxes that are part of a $3 billion stimulus program aimed at diverting excess farm goods like meat, milk and produce to food banks and other nonprofits. The practice is criticized in a letter from House Democrats. In the letter inserted into the boxes, the president says he “prioritized sending nutrition food from our farmers to families in need” and promises to “support America's recovery every step of the way,” along with other promotional language. It also includes basic health recommendations, like urging recipients to wash their hands, stay home if they feel sick and “consider wearing a face covering when in public.” The “friction point,” POLITICO says, arises from questions from Democrats regarding the messaging, namely whether it constitutes improper political activity by USDA officials. Dozens of lawmakers led by Rep. Marcia Fudge, D-Ohio, a senior House Ag Committee member, are demanding to know who ordered the Trump letters and whether it's mandatory or voluntary for contractors and nonprofits to include them in their food boxes. “Using a federal relief program to distribute a self-promoting letter from the president to American families just three months before the presidential election is inappropriate and a violation of federal law,” the Democratic critics wrote to the department on Friday. “We strongly urge you to end this practice immediately.” The report notes that the concerns largely echo the backlash against the President's signature that was reproduced on millions of stimulus checks sent to Americans by the IRS after Congress passed an initial $2 trillion economic rescue package in March. POLITICO notes that Fox News first flagged the letters and is reporting that “they were the president's daughter's idea. She has been involved in promoting the food box program since it launched in May,” POLITICO said. The initiative was already somewhat contentious because of USDA's selection of private contractors, including several with little experience in food distribution — including a wedding planner in San Antonio that was awarded nearly $40 million to pack and deliver food boxes across the Southwest. USDA officials faced criticism from Rep. Fudge and other Democrats at a recent House Ag hearing about the choice of vendors and oversight of the program. Besides heightened scrutiny of the ongoing effort, the new controversy could further motivate key lawmakers who are pushing to tighten restrictions on how the department spends any future farm relief funds. That fight, POLITICO says, has become increasingly contentious as Senate Republicans plan to introduce a scaled-back stimulus bill amid the standoff over a new virus relief plan that's dragged on for weeks. The proposed legislation would include a $300 a week enhanced unemployment benefit, money for small business aid, additional U.S. Postal Service funding and protection for employers against lawsuits stemming from COVID-19 infections, POLITICO said. It would represent a slimmed-down version of the $1 trillion legislation GOP senators introduced at the end of July as a counter-point to the $3.5 trillion plan Democrats passed in the House in May. POLITICO also noted that there are no immediate signs that Senate Majority Leader Mitch McConnell, R-Ky., would call senators back from their August break to vote on the proposal. Any such legislation would need to get at least some Democratic support to get through the Senate and POLITICO thinks that is unlikely — and that any new stimulus may not be acted upon until September. House Speaker Nancy Pelosi, D-Calif., and Senate Democratic leader Chuck Schumer, D-N.Y., have offered to trim their proposal by $1 trillion but have repeatedly rejected any smaller stimulus or doing a virus relief package piecemeal. With just 78 days until the general election, the White House and congressional Republicans have been in a deadlock with Democrats over bolstering the U.S. economy with millions of people still out of work and many businesses struggling with pandemic-induced shutdowns, POLITICO said. That is despite warnings from Federal Reserve officials, economists, governors and mayors that, with much of the earlier stimulus exhausted, the risk to the economy grows every day that goes by without a deal. And, while McConnell said on Monday in Kentucky that he still hopes they can cut a deal with Democrats, he avoided “any guarantees.” “I can't tell you with certainty we're going to reach an agreement,” he said. So, we will see. While there is strong pressure for an addition relief bill, there also is strong resistance — an increasingly bitter fight producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Wednesday August 19, 2020 |
NASS To Resurvey Corn, Soybean Harvested Acreage In Iowa USDA's National Ag Statistics Service (NASS) will update harvested acreage information for corn and soybeans in Iowa in preparation for the September 11 Crop Production report, the agency said Monday, saying the two crops “have been particularly impacted by the recent derecho.” NASS said the additional data “will help to better assess the full impact” of the storm that rolled across the state August 10. “If the newly collected data justifies any changes, NASS will publish updated harvested acreage estimates in the September report,” the agency said. USDA reported in its Crop Progress report that condition ratings for Iowa corn put 59% of the crop in good/excellent condition as of August 16, down from 69% the prior week, with 17% rated in poor/very poor condition versus 8% the prior week. Soybean also fell, with 62% good/excellent and 12% poor/very poor versus ratings one week ag that were 70% good/excellent and 7% poor/very poor. Iowa Secretary of Agriculture Mike Naig said Monday that USDA's Risk Management Agency (RMA) reported 57 counties in Iowa were in the path of the storm. In those counties, there are 14 million acres of insured crops, including 8.2 million acres of corn and 5.6 million acres of soybeans “that may have been impacted.” The Iowa Department of Agriculture and Land Stewardship MODIS satellite imagery and preliminary storm reports from the Storm Prediction Center signal 36 counties were hardest hit, the agency said, and “likely had the greatest impact on 3.57 million acres of corn and 2.5 million acres of soybeans.” Beyond the damage to crops, Naig said the state has lost “tens of millions of bushels of grain storage” just weeks before harvest was to start.
| Rural Advocate News | Wednesday August 19, 2020 |
Trump Continues to Send Mixed Messages on Phase One Trade Deal China is now “more than” living up to the purchase commitments on U.S. farm products under the Phase One trade agreement, President Donald Trump told Fox & Friends Monday. “They know I'm very angry at them” over the COVID-19 virus, Trump said. "Last week, because they know I'm very angry at them because this should have never happened, they made the largest order of corn, the largest order of soybeans in history," Trump said. "They made the largest beef order that they've done in a long time they are going the opposite way because they know how I feel because look they can't make it without us." However, on Tuesday Trump said that he was the one that postponed the trade talks between U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He, saying he did “not want to talk to China right now.” Asked if he would pull out of the Phase One trade deal, Trump simply said, “We'll see.”
| Rural Advocate News | Wednesday August 19, 2020 |
Wednesday Watch List Markets After daily checks of the latest weather forecast and any trade news that emerges, the U.S. Energy Department's weekly inventory report will be watched at 9:30 a.m. CDT for updates on last week's ethanol production, inventory level and report of gasoline demand. Minutes from the most recent Federal Reserve meeting will be released at 1 p.m. CDT. Weather Dry conditions will again cover most primary crop areas Wednesday. Showers in the western Plains look to fade as the day progresses. Temperatures will be seasonally warm in the Midwest and very warm to hot elsewhere.
| Rural Advocate News | Tuesday August 18, 2020 |
U.S., China, Postpone Trade Deal Review The U.S. and China have postponed a review of the Phase One trade deal as China continues to buy large amounts of U.S. farm commodities. The two sides were set to meet over the weekend, but the delay allows China more time to buy U.S. crops. However, the postponement arose over scheduling conflicts, according to Reuters. Saturday marked the six-month anniversary of the trade pact entering into force. President Donald Trump told reporters last week that the trade deal was "doing very well," without adding specifics. Recently, China has ramped up purchases, including a record purchase of sorghum last week of 32 million bushels. That sale topped the previous record set in 2014 of 23 million bushels purchased in one week. Further, the Department of Agriculture reports China purchased 126,000 metric tons of soybeans last week. However, trade experts say China is still behind the pace needed to meet levels of commodity purchases promised in the trade deal. ************************************************************************************ Roberts Leads Letter Urging Flexibility for School Meals Senate Agriculture Committee Chairman Pat Roberts calls on Agriculture Secretary Sonny Perdue to provide flexibilities for school meals and child nutrition. Leading lawmakers in a letter to Perdue, the Kansas Republican says, "As the school year begins, the challenges brought on by the COVID emergency persist." The letter asks Perdue to continue using the child nutrition program waiver authority to assist school food authorities and non-school sponsoring organizations. The lawmakers urge USDA to utilize program flexibilities, grants or reimbursements that assist school food authorities with procuring, preparing, and serving meals in a manner consistent with COVID-19 school re-opening guidelines. The lawmakers say schools are working to provide children meals while schools explore various and blended models of in-person and virtual classroom sessions. The letter also seeks support for non-school sponsors providing meals to children on remote-learning days or when in-classroom learning is unavailable. The letter includes 20 Senators, requesting the action from USDA. ************************************************************************************ Iowa Storm Damage Estimates The Iowa Department of Agriculture says there are approximately 14 million acres of insured crops potentially damaged by the derecho (Deh-RAY-cho) storm a week ago. This includes 8.2 million acres of corn and 5.6 million acres of soybeans that may have been impacted by the storm. The storm destroyed several grain bins. Iowa Secretary of Agriculture Mike Naig adds, “the state has lost tens of millions of bushels of grain storage just a few weeks before harvest begins.” Scouts on the Pro Farmer Midwestern Crop Tour will report on some of the damages this week. Iowa Governor Kim Reynolds requested near $4 billion in federal aid to assist farmers in a letter to President Donald Trump over the weekend. The President on Monday signed an emergency declaration for Iowa. The storm impacted nearly 37.7 million acres of farmland across the Midwest, with Iowa appearing to take the brunt of the storm. ************************************************************************************ Dakota Producers Can Use Cover Crops for Forage Earlier than Normal The Department of Agriculture will allow farmers who planted cover crops on prevented plant acres in select counties in North and South Dakota to hay, graze or chop those fields starting next month. Typically, farmers cannot do so until November 1. USDA’s Risk Management Agency says the change is being made because of excessive moisture and flooding in 42 counties in the two states. USDA Under Secretary for Farm Production and Conservation Bill Northey says, "We made this one-year adjustment to help farmers remain good stewards of the land and provide an opportunity to ensure quality forage is available for livestock this fall." Flooding and excessive rainfall in parts of the country have resulted in a significant amount of prevented planting claims under Federal crop insurance. Given these weather events and the need for animal feed, flexibility around the use of a cover crop planted on prevented planted acreage for haying, grazing and cutting for silage has become necessary. ************************************************************************************ Corps releases Upper Mississippi River Draft Master Plan The U.S. Army Corps of Engineers, St. Paul District seeks comments on its master plan draft for the Upper Mississippi River and environmental assessment. Released last week, the master plan encompasses the Upper Mississippi River from the Twin Cities to Lock and Dam 10 in Guttenberg, Iowa. The current plan reflects changes in policy related to master plan content, format and land classification. The 2020 master plan is based on regional and local needs, resource capabilities, suitability, and expressed public interests consistent with authorized project purposes, pertinent legislation and regulations. It provides a district-level policy consistent with national objectives, other state and regional goals and programs. The Corps completed its first master plan for this area in 1948. Additional updates occurred in 1983 and 1988, as well as a 2011 land-use allocation plan. In accordance with the National Environmental Policy Act, a final determination of the master plan’s draft environmental assessment will be made following a 30-day public review period. ************************************************************************************ Noble Research Institute Hosting Cattle Marketing Strategy Webinars The Noble Research Institute’s Integrity Beef Alliance Program will host two online learning events about marketing cattle strategically with the Integrity Beef programs. The program simplifies cow-calf producer management decisions and increases marketing opportunities through the production of high-quality cattle. The first event, Marketing Cattle Strategically with Integrity Beef Terminal Calf Program, will be from 2-4 p.m. CDT Tuesday, September 1. This event will focus on the marketing benefits that a cow-calf producer can see when participating in the program. The second event, Marketing Heifers Strategically with Integrity Beef Replacement Female Program, will be from 2-4 p.m. CDT Wednesday, September 2. The program is centered on properly developing and vaccinating first-calf heifers with protocols to develop a breeding program to ensure calving ease and high weaning weights of the first calf. There is no registration fee, but preregistration is required to receive meeting login details before the event. For more information and to register, visit www.noble.org/events.
| Rural Advocate News | Tuesday August 18, 2020 |
Washington Insider: New Fed Inflation Target Coming Bloomberg is reporting this week that the Fed is close to adopting a new inflation strategy with a somewhat relaxed target, especially with regard to “crossing its 2% goal.” The report notes that more “radical” options were rejected after the Fed's year-plus listening tour. Bloomberg calls the change as “a subtle yet profound shift in monetary policy” and that it likely will officially embrace the new view. In addition to fighting the economic impacts of the coronavirus pandemic, Fed Chair Jerome Powell and colleagues spent 2020 finishing up the central bank's first-ever review of how it pursues the goals of maximum employment and price stability set for it by Congress. It's a process that began in early 2019 and included a nationwide listening tour. Bloomberg thinks that the Fed is now close to presenting the results, perhaps as soon as September. The central bank will signal clearly to the market that not only will the Fed tolerate inflation temporarily above 2%, “but that it favors it, and will try to aim in that direction,” said Mickey Levy, chief economist for the U.S. and Asia at Berenberg Capital Markets. Several other economists interviewed made precisely the same prediction and agreed that many Fed officials have already been pursuing that strategy for months. Investors also see it coming. The 10-year breakeven rate, a market-based gauge for expected annual inflation over the next decade, has rebounded to 1.66% from as low as 0.47% in March. “Rising inflation expectations are, in part, indicative of the market beginning to price in the Fed's shift,” said Bill Merz, senior portfolio strategist and head of fixed-income research at U.S. Bank Wealth Management in Minneapolis. More details on when and how the Fed will wrap up its review may be revealed this week when the central bank releases minutes to the July 28-29 meeting of the Federal Open Market Committee. The shift in how the Fed seeks to control inflation may sound meager, but it's meaningful, Bloomberg says. The Fed first pronounced a 2% target for inflation in 2012 and officials took that to mean they would always shoot for 2%, no matter how much or for how long they missed. Bygones, they said, would be bygones. However, the Fed's preferred measure of inflation has consistently fallen short, averaging just 1.4% since the target's introduction—and that's a “vexing problem for central bankers” the report says. Combined with low economic growth, it means interest rates have remained historically low. That's squeezed away the Fed's ability to fight off future economic downturns, making them deeper and longer, costing more jobs and destroying more businesses. Bloomberg sees the current, pandemic-induced recession is the perfect example. The lower end of the Fed's target range for its benchmark rate sat at a mere 1.5% when the crisis struck. Officials promptly slashed it to zero in just two moves in March--but that was nowhere near a sufficient response to the worst downturn since the Great Depression. Once again the Fed was forced to make massive bond purchases to stabilize markets and push down real borrowing costs. It's not clear yet how effective those measures will prove to have been. The issue, however, was clear even before COVID-19 hit the U.S. and by early 2020 many Fed officials had already come to the view they'd be better off sometimes pushing inflation modestly above their target so that, over time, it roughly averaged 2%. “The Fed needs to acknowledge there's a cycle with inflation,” said Ethan Harris, head of global economic research for Bank of America Corp. “Some overshooting late in the cycle makes sense.” However, for some Fed watchers, such a conclusion to the much-ballyhooed framework review likely will seem a dud, Bloomberg says. Officials chewed over, but ultimately rejected, a slew of more daring proposals, from raising the inflation target to abandoning it for a nominal GDP target. They also were cautious in re-examining what they might do when rates hit zero. They decided negative interest rates would be a bad option in the U.S. and haven't warmed to the idea of capping the yields on some Treasury securities -- known as yield-curve control -- though they haven't entirely ruled that one out. In the end they see their current tools -- bond purchases and communication on the future path of interest rates -- as still the best options. Atop that they will add the important wrinkle that inflation should average close to 2% over time. That shift, however, will only go so far. When the Fed articulates its new embrace of inflation averaging, officials likely won't apply it in rule-like fashion, economists said, and may not even mention the word “average.” “They'll use language that will convey the notion that the Fed has total, total discretion,” Berenberg's Levy said. From the beginning of the review, Fed Vice Chairman Richard Clarida promised “evolution, not revolution,” and that seems to be what the central bank will soon deliver. But the question for the Fed as it wraps this review is: Will it be enough? As Peter Hooper, global head of economic research for Deutsche Bank AG, put it, “Have we really increased the store of ammunition and the weapons one can draw on to deal with this problem?” At this time, the answer to that question remains unclear — even as the evolving U.S. fiscal policies continue to be vitally important. These certainly should be watched closely by producers as they evolve, Washington Insider believes.
| Rural Advocate News | Tuesday August 18, 2020 |
EPA May Not Issue Decisions on Small Refiner Waivers Until After Elections EPA appears poised to not make any public announcement on its decisions relative to gap-year small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) until after the November elections. EPA Administrator Andrew Wheeler last week in Kansas and in Wisconsin made statements indicating the issue was complicated and that the agency had only started its analysis of the recommendations on SREs that were sent to the agency from the Department of Energy (DOE). He also questioned whether refiners could really claim being financially damaged by the waivers in 2012 or 2013 if they are still in business today. The SREs are one issue but the other matter still to be resolved is the 2021 biofuel and 2022 biodiesel Renewable Volume Obligations (RVOs), another issue that could be delayed until later this year. Wheeler last week commented that there is great uncertainty on the gasoline demand front due to the COVID-19 situation and that EPA is reworking its proposed levels. While the law requires EPA to finalize the plans by November 30, that deadline has been missed in the past.
| Rural Advocate News | Tuesday August 18, 2020 |
Lighthizer/Liu Meeting Did Not Happen The video conference between U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He that had been reported as being set for August 15 did not take place. Some reports chalk up the situation to an effort to let China continue to make their purchases of U.S. farm and other goods while other reports indicated it was nothing more than a scheduling issue. However, the session had never been formally confirmed by either government. Trade sources have noted that there have been repeated contracts between the U.S. and China throughout the process since the deal was implemented back in February. Reuters reported that China's state-owned oil firms had tentatively booked tankers for at least 20 million barrels of U.S. crude for August and September and said that trade contacts indicated that PetroChina and Sinopec had stepped up their purchases.
| Rural Advocate News | Tuesday August 18, 2020 |
Tuesday Watch List Markets Traders will check the latest weather forecasts early Tuesday and consider the latest ratings in Monday afternoon's Crop Progress report. At 7:30 a.m. CDT, the U.S. Census Bureau will release July's housing starts. The market will also watch for any trade news that might develop. Weather Tuesday will again be dry across primary crop areas. Thunderstorm activity will be isolated in portions of the Northern Plains and Ohio Valley. This combination favors spring wheat harvest but is unfavorable for late-season row crop moisture. Meanwhile, extreme heat and fire danger remain in effect throughout the western U.S.
| Rural Advocate News | Monday August 17, 2020 |
Storm Damage Estimates Still Climbing Scouts are on the Pro Farmer Crop Tour trail this week to get a look at corn and soybean crops in the Midwest. They’ll also get a look at crop damages from the derecho (Deh-RAY-cho) storm a week ago. The violent thunderstorms traveled over 700 miles from Nebraska to Indiana. The storm was so powerful, as of last Thursday, more than 300,000 people hadn’t had power restored in northern Illinois and Iowa, which was the hardest-hit state. The Washington Post says the 70 mile-per-hour winds hit more than 10 million acres of corn and soybeans in Iowa, adding more difficulty to an already challenging year for farmers. Up to 43 percent of the state’s corn and soybean crop suffered some level of damage from the storms, a big blow to the $10 billion agriculture industry that anchors Iowa’s economy. The damage was so extensive that it was even visible on weather satellites that were used to track the storm. Meteorologist Steven Bowen said on Twitter that “This has all the makings of a billion-dollar impact on agriculture in Iowa and Illinois. With that said, it will take some time for farmers to determine how much of the downed crops are salvageable for harvest.” ********************************************************************************************** China Buys Record Amount of U.S. Sorghum The USDA’s Foreign Agricultural Service published data showing that the U.S. recently sold a record amount of sorghum. The sale of 32 million bushels topped the previous record week of 23 million bushels that was set in December of 2014. “U.S. sorghum farmers should be encouraged by these continued sales to China,” says National Sorghum Producers and Sorghum Checkoff CEO Tim Lust. “We are making improvements to our crop not only from a yield and technology standpoint but also through quality measures that are translating directly to international buyers and noticeably-improved basis numbers across the country.” USDA says current marketing year sales totaled more than 286,000 metric tons, with 527,500 metric tons sold for the coming 2020-2021 marketing year. The recent one-week sale of 32 million bushels totaled about nine percent of total U.S. sorghum production this year. “The sales commitments are profound, and like any other high-demand situation, we expect to see basis increases enhance sorghum acres next year,” says Sorghum Checkoff Executive Director Florentino Lopez. While they’re working to enhance sales in China, the checkoff is also continuing to build future overseas markets in Vietnam, Kenya, and India. ********************************************************************************************** COVID-19 Continues Pressure on Farm Finances in the Second Quarter The effects of COVID-19 continue to put pressure on the agricultural economy and weighed down farm finances in the Kansas City Fed’s Tenth District. Farm income declined in the second quarter of 2020 at its quickest pace since 2016, due in large part to weak market conditions for key agricultural commodities. Weakness in both farm income and borrower liquidity was expected to carry into the coming months. Agricultural credit conditions remained weak overall, but still relatively stable. The decrease in liquidity was consistent across all states, with a comparably higher share of banks in Nebraska reporting reduced short-term funds among borrowers. Looking ahead, bankers expect farm borrowers to have greater difficulty repaying loans. Some of the current stability in credit conditions may be attributed to government programs that provided revenue support and additional financing options for borrowers. Even before COVID-19, the USDA was already forecasting additional declines in working capital for the U.S. farm sector in 2020. Concern about drought is placing additional pressure on the western part of the Kansas City Fed’s District. A bigger share of bankers in the west expect farmers to have trouble paying back loans in the months ahead. ********************************************************************************************** Chinese Cities Find Coronavirus in Frozen Food Imports Two cities in China have found traces of coronavirus in frozen-food imports. Samples taken from frozen chicken wings imported from Brazil and shrimp from Ecuador have both tested positive for the virus. While the number of COVID-19 cases continues to rise, the discoveries are causing concern that the disease can spread on surfaces and enter the food chain. One day before the Chinese announcement, Reuters says officials in New Zealand started to investigate whether the first COVID-19 cases there in more than three months were imported by freight. The World Health Organization downplayed the risk of the virus entering the food chain. While viruses can survive as long as two years in temperatures of minus four degrees Fahrenheit, scientists and officials say there is no strong evidence that the coronavirus can spread through frozen food. “People should not be afraid of food, food packaging, or delivery of food,” says Mike Ryan, the Head of Emergencies Programming for the WHO. The U.S. Food and Drug Administration and USDA issued a joint statement saying that “there is no evidence that people can contract COVID-19 from food or food packaging.” ********************************************************************************************** Mexican Farmers Unhappy with Glyphosate Ban The Mexican agriculture industry expects to lose approximately 76 billion pesos, or $3.4 billion, due to a lower harvest brought on by the government’s ban on glyphosate imports. Mexico News Daily reports farmers are expecting to run out of their glyphosate stocks because imports have been banned by the Ministry of Environment during the fall-winter farming cycle. The National Agricultural Council in Mexico says the shortage will negatively impact as many as seven million farmers and other workers who are economically dependent on the agriculture industry. The National Agricultural Council issued a statement saying, “The inventories are running out. We as farmers don’t have glyphosate for the fall-winter cycle.” The council says if the government restrictions aren’t lifted, the only thing it will achieve is a major drop in food production across the country. The Mexican farmers estimate a drop of 30-50 percent in this year’s harvest, with most of the impact in grains. An agrochemical company spokesman says their industry hasn’t been able to find a replacement for glyphosate that’s nearly as effective. ********************************************************************************************** Farm Credit Institutions Increased Support to Young, Beginning, and Small Farmers A recent presentation shows Farm Credit institutions increased their support of the young, beginning, and small farmers and ranchers across the country in 2019. “Farm Credit grew and strengthened its commitment to young, beginning, and small farmers and ranchers in 2019 despite the challenges of continued low commodity prices, severe weather events, and an uncertain trade outlook,” says Farm Credit Council President and CEO Todd Van Hoose. “Farm Credit takes its mission to support rural communities and agriculture very seriously.” He says lending to the young, beginning, and small farmers is at the core of its mission. Last year, Farm Credit increased the number of loans to young farmers by almost six percent, beginning farmers by eight percent, and small farmers by seven percent, as compared to 2018. Similarly, the dollar amount of those loans increased as well, by 7 percent to young farmers, eight percent to beginning farmers, and 16 percent to small farmers. The FCA is an independent federal regulatory agency charged with the oversight of the Farm Credit System.
| Rural Advocate News | Monday August 17, 2020 |
Washington Insider: Recession Pain Remains Bloomberg is reporting this week that economic pain is lingering behind U.S. retail sales recovery and that beneath the economic headlines, big shifts in sales composition are attracting attention. The analysis adds that further gains are threatened by stalemate over additional stimulus. On the surface the rebound in U.S. retail sales is a “V-shaped recovery,” the report says. But the overall figure obscures lingering economic pain across many of America's business sectors. Bloomberg notes that after a third straight monthly increase -- albeit a weaker gain than expected -- the total value of U.S. retail sales has rebounded above pre-pandemic levels. But the composition of spending looks substantially different than it did at the start of the year. Gains in online sales and at grocery stores mask the fact that certain sectors such as restaurants and bars and clothing outlets are far from fully recovered. “Where we're buying now is “a bit different,” but we're actually at some pretty strong numbers now,” said Stephen Gallagher, chief U.S. economist at Societe Generale SA. “Travel, eating out, sporting events, a lot of entertainment events -- all that is going to be struggling for quite some time.” The figures highlight a rebound in consumer spending that will help the economy dig out from its worst quarterly performance since the 1940s, even if the pickup in activity fails to extend to all retailers. While receipts at restaurants, department stores and clothing merchants remain below year-ago levels -- and closures and job cuts have hit such establishments hard -- those categories account for about 15% of overall retail sales. The outlook for overall consumer spending in coming months remains murky, though. The extra $600 in weekly jobless benefits that have propped up incomes and spending for millions of unemployed people in recent months expired at the end of July and lawmakers have been in a stalemate over another aid package. A separate report Friday showed consumer sentiment remained weak in August, increasing slightly from July but little improved from April's pandemic low. In addition, total consumer outlays -- which include spending on goods and services -- have yet to recover fully. The Commerce Department's report on Friday showed retail sales increased 1.2% from the prior month after an upwardly revised 8.4% gain in June. The monthly slowdown reflected declines at motor-vehicle dealers and building materials outlets, along with weaker gains at restaurants and clothing stores. Nine of 13 major categories rose, with the biggest increase coming at electronics and appliance stores. Such sales jumped 22.9% following a 37.6% gain in June, likely reflecting changing consumer habits such as more Americans working and learning from home. Receipts at sporting goods and hobby stores fell 5% from the prior month, after June's 27.6% rise. The S&P 500 stock index fluctuated between gains and losses on Friday, lingering near a record high. “For consumer goods spending, the recovery is over -- spending levels are back to record highs,” Wells Fargo & Co. economists Tim Quinlan and Shannon Seery said in a note. But “keep in mind that for the overall economy, outlays on services are roughly twice as large as goods and the recovery in services has been slower.” President Trump signed an executive action last week authorizing an additional $300-a-week federal top-up for those receiving at least $100 in other jobless benefits but it's not clear when jobless workers will begin to see those supplemental payments. He also allowed for a four-month deferral of payroll taxes, which would potentially give workers more spending power but there are questions over whether employers will go along and whether they'll have to pay it back later. Most importantly, the U.S. has yet to get the virus under control, though the spread has ebbed slightly in the last couple of weeks. Several Federal Reserve officials have reiterated the virus' role in the economic recovery recently, including San Francisco Fed President Mary Daly, who said Wednesday, “the virus determines the pace of our recovery. That's the main message: uncertainty is before us.” A separate report out Friday from the Federal Reserve showed total output at factories, mines and utilities rose 3% in July from the prior month, in line with projections, as a surge in motor vehicle production and unusually warm temperatures boosted the overall figure. “The economy is showing some good resiliency despite the high numbers of COVID cases,” Michael Gapen, Barclays Plc's chief U.S. economist, told Bloomberg. “I think that can continue but I think it needs some additional federal support to do that.” So, we will see. Pressure to increase anti-virus support is high and likely growing, but disagreements over details of such a package also have increased and the issue has become increasingly politicized -- a trend that is likely to intensify as the conventions heighten the drama in the coming days. Thus, the fight over economic assistance is increasingly important and should be watched closely as the economy struggles to rebound, Washington Insider believes.
| Rural Advocate News | Monday August 17, 2020 |
USTR Nominee Clears Senate The Senate Thursday by voice vote confirmed Michael Nemelka as a deputy U.S. Trade Representative and Alina Marshall and Christian Weiler as judges to the U.S. Tax Court. Nemelka said during his confirmation hearing before the Senate Finance Committee that China's purchases of U.S. ag products would be picking up in the fourth quarter and also said that the U.S. could bring complaints under the U.S.-Mexico-Canada Agreement (USMCA) as soon as this fall. This comes after USTR, USDA and the Commerce Department held the first of two public hearings on the imports of fresh produce into the U.S. Efforts to get more protections in USMCA from fresh produce imports failed, but the two hearings were set in part due to the lack of the provisions making it into the trade deal. The second hearing will take place August 20.
| Rural Advocate News | Monday August 17, 2020 |
VP Pence Talks Ethanol, Storm Damage in Iowa Visit President Mike Pence was in Iowa on Thursday for the rollout of the “Farmers and Ranchers for Trump Coalition,” noting that biofuel policy is an area the administration has delivered. Pence said President Donald Trump had promised to expand ethanol markets and “that's just what we've done,” noting the expansion of the use of E15 year-round. Biden campaign spokeswoman Kate Bedingfield said Pence came to Iowa “to change the narrative on the Trump administration's disastrous coronavirus response, and to distract from their record of double-crossing the ethanol industry and pursuing an erratic, costly trade policy that puts American workers on the losing side of the equation.” Pence also mentioned the derecho storm in the stop. He pledged that help was coming, but did not mention any specific federal relief that may be headed Iowa's way. “On behalf of the President of the United States and our administration I want Iowans to know we are with you. We are going to stay with you and we will work with your governor and your senators to make sure that we bring Iowa all the way back, bigger and stronger than ever before,” Pence said, to cheers. “I promise.”
| Rural Advocate News | Monday August 17, 2020 |
Monday Watch List Markets The latest weather forecasts will continue to be an important feature of Monday morning activity as will any trade news that develops. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT and will be followed by a soybean crush report for July from the National Oilseeds Processors Association. USDA's Crop Progress report will be released at 3 p.m. CDT with many wondering if any crop rating decline will show up from last week's severe wind storm. Weather Monday will be dry across all primary crop areas. Temperatures will be seasonally warm in the Midwest and very warm to hot elsewhere. The dry pattern is indicated to remain through the end of August, leading to possible effect on filling crops. Dry and stressfully hot conditions will be notable in the western U.S. also.
| Rural Advocate News | Friday August 14, 2020 |
July Equipment Sales Numbers Climb Higher Despite Uncertainty July was the fourth-consecutive positive month in the U.S. for overall unit sales of agricultural tractors and self-propelled combines. July numbers in Canada were also positive for the second-straight month. The latest information from the Association of Equipment Manufacturers says U.S. total farm tractor sales rose 34 percent in July when compared to July 2019. June’s self-propelled combine sales grew 33.6 percent. Four-wheel drive tractors continued their decline in unit sales in the U.S. in July, falling 21 percent for the month and 13 percent so far in 2020. Total year-to-date sales of all farm tractors are up 14 percent in 2020, while combines broke into positive territory for the first time in 2020, now up four percent in the same period. “We’re continuing to see demand in the small, medium, and harvesting sectors,” says Curt Blades, Senior Vice President of Ag Services at AEM. “The continuously-developing nature of COVID-19 and its effect on the agricultural sector is keeping our optimism cautious.” Growth in the U.S. market has outpaced the five-year average each month and Blades says they’re hoping that trend continues. ********************************************************************************************** Food Prices Decline in July After months of steady increases, the prices consumers pay for their groceries dropped in July. The monthly Consumer Price Index says that was the first decline in the price of food since April of 2019. However, the decrease was less than half a percent and Americans are still paying more for food than they did in 2019. Prices in the last 12 months have risen 4.1 percent. COVID-19 forcing Americans to stay at home and cook more of their meals has driven up demand and prices at supermarkets. Prices for food that Americans typically eat at home is up almost five percent over the past year. The Detroit Free Press says meat, poultry, eggs, dairy products, and cereals showed some of the sharpest increases seen in decades through April, May, and June. However, prices for those same products fell 3.8 percent in July. Beef prices dropped the most in July at 8.2 percent. Back in April, beef prices had soared over 10 percent, with cuts like beef roasts increasing 20 percent. While prices for specific cuts dropped in July, those prices are still 14 percent higher than last year. Dairy prices dropped 0.8 percent in July, the second-straight month of a decline. ********************************************************************************************** Western Oil Refineries are Converting into Biofuel Plants Massive oil refineries in the western United States are making an unexpected transition. They’re being converted into biofuel plants. Phillips 66 recently announced it will convert a California oil refinery into a biofuel plant as gas continues to lose some luster to fuels that come from agricultural and waste products. The company’s 120,000 barrel-a-day refinery near San Francisco will become the world’s biggest renewable diesel plant. Before that, fuel giant Marathon Petroleum Corporation announced it may be converting two refineries into renewable diesel plants. Back in June, Holly Frontier Corporation said it’s turning their Cheyenne, Wyoming refinery into a renewable diesel plant by 2022. Bloomberg says refiners are struggling with depressed demand and an uncertain future because of COVID-19. However, California may offer a pathway to staying in business because the demand for renewable diesel is surging throughout the state. An industry expert tells Bloomberg that there is “overcapacity” in the refining market. The basic question before refiners now is whether they shut down their plants or will they instead repurpose their operations? Nick Weinberg-Lynn of Phillips 66 says, “The California market for the renewable diesel product is the largest in the world.” Phillips will invest $700 million to $800 million in the conversion process. ********************************************************************************************** Mexico Will Phase Out Glyphosate by 2024 By the time the current Mexican administration ends in 2024, Mexico will have phased out the use of glyphosate. President Andres Manuel (Man-WELL) Lopez Obrador made the announcement this week following a ministerial disagreement over the product. The herbicide, which is used in brands like Roundup, has caused differences between his agriculture and environment ministries. The Mexican president says the government will immediately stop using glyphosate in its projects. The agriculture ministry announced that private food producers will have until 2024 to phase out the use of glyphosate, which has sparked safety concerns in numerous countries around the globe. “We couldn’t get rid of it all at once,” the president said to reporters. “It can’t be done; it would hit food output. We would have to import, and the products we bring in would also be grown with the same agrochemicals.” The president’s announcement follows a leaked audio recording of his Environmental Minister, who has been a strong critic of the herbicide, criticizing the government for internal contradictions during a private meeting. ********************************************************************************************** U.S. Hemp Growers Association will be at Farm Journal Field Days The U.S. Hemp Growers Association is happy to announce it will be involved in Farm Journal Field Days. The U.S. hemp industry is continuing to grow and advance, so they’ll be offering opportunities for farmers and hemp businesses to advance knowledge and contacts in hemp and provide resources for hemp growers. The USHGA is a nonprofit group dedicated to providing resources to farmers about the best agricultural practices for growing hemp, as well as information about the regulatory and legislative developments they need to know about. The group is also an information network for policymakers, researchers, and other industry stakeholders. “The U.S. Hemp Growers Association is excited to exhibit at Farm Journal Field Days,” says Caren Wilcox, the executive director of the association. “We believe events like this unite farmers nationwide and bring us closer to our mission of education and outreach.” Wilcox will give a policy update and Michael Bowman, Chair of the USHGA, will speak to attendees about the organization. Hemp growers will also be available at the booth. ********************************************************************************************** Mustard Family Member Seen as a Potential Biofuel Source Lesquerella is a member of the mustard family that is native to the Southwest U.S. Agricultural Research Service scientists are now looking at it as a potential home-grown source of butanol. It’s a cleaner-burning alternative to gasoline that was produced around the world until after World War 2 when making the fuel from petroleum sources was more efficient than fermenting it from corn and molasses. Now that fermentation and product-recovery technology have advanced, a team at the ARS’ National Center for Agricultural Utilization Research in Illinois hopes to rekindle the production of butanol as a biobased fuel. They’ve begun conducting research to expand the list of butanol feedstocks that can be used, and they’re finding fiber-rich crop residues like wheat straw, sweet sorghum, and corn stover work well. The team’s efforts are part of a broader umbrella effort at the ARS to create new, value-added markets for commodities, especially if they could eventually be sustainable alternatives to petroleum-based fuels.
| Rural Advocate News | Friday August 14, 2020 |
Washington Insider: Much of Economy Shut Out of Borrowing Boom Bloomberg is reporting this week that the massive government stimulus now allows more companies to borrow at lower rates than ever before but, “smaller firms that power America's economic engine are often being shut out, hamstringing the recovery just as it begins.” The Federal Reserve's pledge to use its near limitless balance sheet to buy corporate bonds has aided stricken airlines, oil drillers and hotels. It's also helped companies from Alphabet Inc. and Amazon.com Inc. to Visa Inc. and Chevron Corp. to access some of the cheapest financing ever seen. All told, firms have sold about $1.9 trillion of investment-grade debt, junk bonds and leveraged loans this year, Bloomberg says. Still, for companies not large enough to tap fixed-income markets, banks are tightening conditions on loans to smaller firms at a pace not seen since the financial crisis – while many direct lenders that have traditionally focused on the middle market are pulling back or turning to bigger deals. What's more, the Fed's emergency lending programs for mid-sized businesses and municipalities have been criticized as slow, complex, and largely inaccessible, Bloomberg says. A lack of credit for small and medium-sized firms could tip many into bankruptcy, adding to the thousands of local businesses that have already quietly disappeared. Given the sector employs roughly 68 million Americans, Fed Chair Jerome Powell calls it America's “jobs machine” and sees it as critical to regional economies across the U.S. “The Fed actions have moved issuers that are big enough in front of the velvet rope – while those that aren't stay outside,” said Peter Atwater, an adjunct lecturer of economics at William & Mary. “Capital markets access has become a determiner of life or death for business.” And while many economists commend the Fed for its quick and decisive actions when the pandemic hit, they also note that certain parts of the economy are clearly benefiting more than others – the big and powerful over the small and financially vulnerable, a disparity that to some degree mirrors the broader inequality problems that have been exposed by the pandemic. The Fed announced its corporate bond-buying plan in March, opening the issuance floodgates after the coronavirus outbreak brought the market to a virtual standstill. Investment-grade firms have borrowed more than $1.3 trillion in 2020, a record pace, Bloomberg said. Alphabet's $10 billion bond sale earlier this month saw record-low yields on the seven-year portion, besting levels set by Amazon in June. On the high-yield side, aluminum-packaging company Ball Corp. sold $1.3 billion of 10-year notes at 2.875% on Monday, the lowest ever for a U.S. speculative-grade offering with a maturity of five year or longer. “It's a battle between the Fed's $750 billion special purpose vehicle to buy corporate investment-grade and high-yield bonds and those who don't have access to this free money,” said Stephen Blumenthal, chief executive officer at money manager CMG Capital Management Group Inc. And, it's a battle that smaller companies are decidedly losing, Bloomberg thinks. Some 70% of bank senior loan officers surveyed by the Fed said they have tightened lending standards on loans for small commercial and industrial firms in the third quarter. The trend also extends to mid-size and larger firms, though the latter enjoy unprecedented access to capital markets. About 54% said they increased premiums for small borrowers, the most in over a decade. Everyone is willing to lend to the biggest firms,” said Olivier Darmouni, a professor of finance at Columbia Business School. “But since the pandemic has not been tamed, creditors are now asking if the businesses will actually survive and they'll get their money back. For smaller firms, there's a lot more uncertainty of that.” In a bid to encourage banks to extend credit to mid-size firms, the Fed introduced its $600 billion Main Street Lending Program in April—but despite efforts to broaden the program, it's issued just $253 million in loans as of Aug. 10. Critics say the program only works for a narrow set of companies, is too complex and doesn't provide enough incentive to risk-averse lenders. Making matters worse, direct lenders, which often provide financing to small and mid-size firms, have been retrenching for months as they tend to their own portfolios, while those sitting atop the most capital are increasingly targeting bigger deals. Of course, the tale of diverging 'haves' and 'have nots' is hardly new in credit, manifesting when economic turbulence prompts lenders to retrench and investors to seek the relative safety of stable, blue-chip firms. But the magnitude of the disparity this time around is more alarming when combined with expectations for record corporate defaults this year, Bloomberg says. A growing chorus is also warning on inflation, which can hit smaller firms particularly hard. One of those is Larry McDonald, founder of The Bear Traps Report investment newsletter. “It's an inequality explosion in terms of financial sustainability,” said McDonald, who also authored the book 'A Colossal Failure of Common Sense' about the demise of Lehman Brothers Holdings Inc. “You have financial conditions tightening in some spots, and then wide open for the big guys – it's crazy.” So, we will see. The Fed's credit programs are increasingly essential now, and should be watched closely as they become increasingly important to the economy across the board, Washington Insider believes.
| Rural Advocate News | Friday August 14, 2020 |
China Official Calls On US To Stop Taking 'Restrictive' Actions Saying the COVID-19 situation has clearly impacted China's purchases of U.S. goods and services under the Phase One agreement, Assistant Ministry of Commerce Ren Hongbin called on the U.S. to stop taking “restrictive” actions and create a more-positive atmosphere for implementing the Phase One agreement between the two sides. "Under the current situation, it is required that the both sides need to work together and step up cooperation to overcome the difficult times," Ren stated. “We hope U.S. would stop taking any restrictions and discriminatory action against Chinese companies and create conditions for the implementation of the Phase 1 trade agreement." U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steve Mnuchin and Chinese Vice Premier Liu He are to take part in a video conference August 15 to assess the Phase One agreement status.
| Rural Advocate News | Friday August 14, 2020 |
EPA's Wheeler Raises Questions On Gap-Year Refinery Exemption Requests So-called “gap year” petitions for small refinery exemptions (SREs) for previous compliance years are still being reviewed by EPA, and agency Administrator Andrew Wheeler said in Wisconsin he has questions about some of those petitions. “One question that I personally have is how can you prove an economic harm in 2012 if you're still in existence today?” Wheeler said during a Wisconsin farm tour. The Department of Energy recently sent its recommendations to EPA. As for the 2021 biofuel and 2022 biodiesel recommendations and the renewable volume obligations, Wheeler said the process of determining those levels remains uncertain. “People are still not driving as much as previous years, we take that into account when we set the RVO,” said Wheeler. “We're still going through all the data to try to figure out what the impact COVID is going to have on the RVO... Then we also have to look at what the remedy is because the appropriate remedy would not be to give people current year RINS for something from 2012 or 2013.” He noted EPA did send a package to the Office of Management and Budget for review in May but now said that the entire landscape has changed since then. Wheeler said EPA has been proud to be able to meet the deadline for the RVO proposal the previous three years of the administration but “it does not look like we're going to be on time this year.” It is not clear why the agency sent the plan to OMB given the uncertainty that Wheeler said exists with COVID-19.
| Rural Advocate News | Friday August 14, 2020 |
Friday Watch List Markets A report on U.S. retail sales is due out at 7:30 a.m. CDT, followed by the Federal Reserve's report on U.S. industrial production at 8:15 a.m. and an index of U.S. consumer sentiment at 9 a.m. The latest weather forecasts are still important as is any trade news ahead of Saturday's meeting between the U.S. and China. Friday is the last trading day for August hogs and August soybean contracts. Weather Scattered showers are expected across the Northern and Central Plains through the Upper Midwest on Friday and could be strong to severe. More scattered showers will be found in the Southeastern Plains through the Southeast and some showers may make their way northward into the eastern Midwest as well. Temperatures will be mild across the north but very hot in the south.
| Rural Advocate News | Thursday August 13, 2020 |
NCBA Pleased with Hours of Service Exemption The U.S. Department of Transportation’s Federal Motor Carrier Safety Division announced a 30-day extension to the Hours of Service Exemption for livestock and feed haulers. The National Cattlemen’s Beef Association says it’s pleased with the decision. “Livestock haulers are crucial to keeping beef moving through the supply chain and on to grocery store shelves,” says NCBA’s Executive Director of Government Affairs Allison Rivera. “We thank the DOT and FMSCA for extending this exemption and giving crucial relief to critical infrastructure.” However, she says while this is a definite win for the cattle industry, more still needs to be done. “NCBA will continue to work with the Trump administration and Congress to find a permanent fix for the Hours of Service Regulations,” she adds. The Motor Carrier Safety Administration issued an emergency declaration at the beginning of COVID-19 to exempt livestock haulers from the burdensome Hours of Service Regulations. The most-recent 30-day extension to that declaration was set to expire on August 14. The new extension now runs through September 14. ********************************************************************************************** Kudlow: U.S.-China Trade Deal in “Fine Shape” The White House’s top economic adviser Larry Kudlow says the U.S. and China trade deal is in “fine shape.” He notes that China is continuing to buy U.S. goods, particularly commodities, under the Phase One trade deal with the U.S. Reuters says the purchases are happening despite tensions over Hong Kong and other issues between the two nations. Kudlow denied that deteriorating ties between the two countries on other issues would lead to the trade deal being scrapped. “The one area we are engaged in is trade,” he said to reporters at the White House. “it’s fine right now.” Top U.S. and Chinese officials will meet for a “routine” video conference on Saturday to assess the implementation of the Phase One agreement six months into its existence. The deal diffused a trade war that impacted both of the nations as well as the global economy. Kudlow, Director of the White House National Economic Council, says, “The evidence shows they’ve stepped up purchases substantially.” Despite what Kudlow says are “really good numbers,” China remains far short of its overall purchasing target for 2020. The U.S. exported $7.2 billion in agricultural goods to China in the first half of 2020, far below the $36.5 billion they agreed to under the trade deal. ********************************************************************************************** Corn and Soybean Harvest Expected to Set Records in August WASDE U.S. farmers are expected to harvest a lot of corn and soybeans this year. The August World Ag Supply and Demand Estimates report says corn production is forecast at a record-high of 15.3 billion bushels, up 278 million from last month. The season’s first survey-based corn yield forecast is at a record 181.8 bushels per acre, up 3.3 bushels from last month’s trend-based projection. Corn ending stocks rose more than 100 million bushels to 2.76 billion. The season-average corn price dropped 25 cents to $3.10 a bushel. The soybean production forecast is 4.42 billion bushels, up 290 million bushels on expected higher yields. The yield forecast is at a record 53.3 bushels per acre, up 3.5 bushels from last month. Soybean ending stocks rose 185 million bushels higher from last month to 610 million bushels in the August report. The season-average soybean price is forecast at $8.35 a bushel, 15 cents lower than in July. U.S. wheat production jumped 14 million bushels to 1.84 billion. Wheat ending stocks dropped by 17 million bushels to 925 million, and if realized, that would be the lowest ending stocks in six years. The U.S. season-average farm price dropped by a dime to $4.50 a bushel. The first cotton production forecast of the year is 18.1 million bales, nine percent lower than last year. Yield is expected to be a record high of 928 pounds per acre. ********************************************************************************************** Refiners Say Biofuel Bills Soaring During Demand Slump U.S. oil refiners say biofuel blending requirements will cost them the highest amount of money they’ve spent since 2018. The refiners say it’s putting more pressure on margins already hit by the collapse in oil prices and demand which began in March. The Financial Post says COVID-19 has led to less blending activity and as a result, fewer Renewable Identification Numbers being issued. With fewer of the compliance credits available, the price of RINs has gone up as well. As of earlier this week, the price for corn-based ethanol fuel credits in 2020 has risen almost fivefold this year to 43.50 cents each. An oil industry executive says RINs are one more cost to contend with in a refining environment which is seeing margins under pressure because of so much excess refining capacity around the world. The higher cost of RINs combined with lower margins due to COVID-19 have added urgency to the refiners’ side of the debate in Washington, D.C., around blending requirements. Lawmakers from oil-producing states have called for relief for refiners during COVID-19, due in part to the increased RIN prices. ********************************************************************************************** No Change in Land Values in 2020 The average value of agricultural cropland sits at $4,100 per acre in 2020. That’s unchanged from last year but in line with recent record highs seen in 2019 and 2015. USDA’s 2020 Land Values report says the average value of cropland, including all land and buildings on farms, was $3,160 per acre in 2020. That’s unchanged from 2019’s record high. The average value for pastureland was $1,400 an acre this year, unchanged from 2019. Cash rental rates for cropland averaged $139 per acre in 2020, down a dollar an acre from 2019. Agricultural land values were the highest in the Northeastern states. Densely-populated urban areas like Rhode Island, New Jersey, Connecticut, and Massachusetts, represent four of the top five states in terms of average agricultural land values. California rounds out the top five. Outside of urban areas, agricultural land values were highest through the Corn Belt, the Great Lakes region, the Southeast, and the Pacific Northwest. Through the Corn Belt, agricultural land values were highest in Illinois at $7,400 an acre, followed by Iowa at $7,100 an acre. Western states with both a higher concentration of livestock feeding operations and a high percentage of pastureland had lower average agricultural land values. ********************************************************************************************** Schumer Asks Perdue to Delay Hemp Regulations Senate Minority Leader Chuck Schumer rarely gets involved in agricultural issues. However, the Hagstrom Report says he asked Ag Secretary Sonny Perdue to delay issuing a U.S. Domestic Hemp Production final rule until 2022. That move would allow hemp growers and producers in his home state of New York and across the country to continue to operate under the 2014 Farm Bill Pilot Program until that time. Schumer notes that COVID-19 is a solid reason for the delay. He also knows about some criticism for the interim final rule and says a delay “will allow USDA to address some of the more pressing regulatory critiques while giving states and producers additional time to come into compliance.” Allan Gandleman is President of the New York Cannabis Growers and Processors Association. He says the more than 700 registered hemp farmers in Schumer’s home state of New York would be negatively affected by USDA’s interim final rule on hemp.
| Rural Advocate News | Thursday August 13, 2020 |
Washington Insider: The Struggle to Provide Essential Antivirus Support Politico is reporting this week that after a spring and summer bolstered by cash infusions from the federal government of more than $3 trillion, the U.S. economy may have to sink or swim this fall with a relative trickle of support — a scenario that presents a significant threat to the administration as it heads into a compressed reelection campaign. Negotiations on another large fiscal aid package remained stalled and administration officials said they “held no hope of any movement this week — perhaps even for the rest of the month.” Also, economists “mostly say” the administration's executive actions would have limited impact, even if they manage to survive potential legal and operational challenges. Politico thinks that this means that for the moment, struggling small businesses are running out of their initial aid with no replenishment in sight. State and local governments face mounting budget shortages that could spur significant layoffs this fall. And schools are waiting on much-needed funding to open safely. Politico sees this as boiling down to the expectation that absent a fresh breakthrough on another stimulus bill, an economy that cratered by historic proportions in the first half of the year amid the COVID-19 epidemic will have to continue to snap back without much federal help, at least beyond the easy-money policies put in place by the Federal Reserve. At the same time, Politico says White House officials expect that the executive actions will do a lot to boost the recovery while also putting Democrats on defense politically. National Economic Council Director Larry Kudlow said “I'm the first to admit there is way too much unemployment out there and we really do need to help people and we came up with a good compromise way to do that.” Kudlow frames the payroll tax deferral as a $1,200 wage increase “for the heroes who are working through this whole pandemic. And if after-tax wages go up, that's an incentive to go back to work. And politically, it may well move us toward negotiations.” Trump on Saturday moved to circumvent Congress with four executive actions that would attempt to provide $400 per month in extra jobless benefits by redirecting existing federal disaster aid money. The order says states would have to come up with 25% of the money, but Trump later said the federal government would cover the whole payment if struggling states could not. Kudlow said the extra benefit could be even higher — as much as $800 — because the administration would work to repurpose more funds and add to whatever states are able to provide. It's unclear when the benefit would kick in or how long it would last. States were still seeking guidance this week and some worried they'd need to build a new system for delivering benefits under this program. But Treasury Secretary Steven Mnuchin said he thought states could start distributing the new benefits “within the next week or two.” White House chief of staff Mark Meadows conceded that major issues remain unaddressed. “The downside of executive orders is you can't address some of the small business incidents that are there,” he said on Sunday.” And, the White House says it still wants a larger deal, despite major differences with Democrats on the price tag and what new legislation would include. But Meadows did not say when he might restart talks with Democratic leaders on the Hill, only that “if we can get a fair deal we're willing to do it this week.” “It's unclear where we go from here. The recovery may be ongoing but downside risks absent further stimulus are significant,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “Without additional help, incomes and spending will surely retrench. Market analysts say the stock market's resilience is partly because second-quarter earnings — though dramatically lower than 2019 — have mostly not come in as badly as feared. And the Fed's commitment to keep interest rates low and pumping vast sums of money into markets to boost growth is driving investors into stocks. But part of the market strength is also an assumption — perhaps an incorrect one — that Republicans and Democrats will ultimately have to make a deal for something around $2 trillion in further stimulus rather than face the election risk of a freshly declining economy Still, it's virtually impossible to find analysts who believe a deal won't ultimately get made, Politico says. “The executive orders will likely force Democrats to come back to the negotiating table,” Edward Moya, senior market analyst at foreign exchange trading firm OANDA, said. “Democrats will likely make some big concessions and a deal around the $1.5 trillion level should be reached. The economic recovery will continue and still be fueled by stimulus before and after the election.” So, we will see. It is clear that there is wider support for economic interventions than in previous recessions — but producers should watch closely as lawmakers continue to struggle to find a path to make the support as effective as many suggest is needed, Washington Insider believes.
| Rural Advocate News | Thursday August 13, 2020 |
USDA Continuing To Work on Unsolicited Seed Packages USDA has more than 9,000 emails from consumers that have received unsolicited packets of seed, presumably sent from China, according to Osama El-Lissy with USDA's Animal and Plant Health Inspection Service (APHIS). So far, USDA has only received 925 seed packets and has gone through those and so far, El-Lissy said, has only found two noxious weeds – dodder and water spinach. “We are working to figure out who is actually sending those shipments and more importantly, to stop future shipments,” El-Lilly told USDA Radio. USDA has also been working with their counterparts in China to identify the actual senders, he noted, saying they know the names of the companies but do not know background information. USDA said it has been working with primary commerce companies to “use their own systems in stopping future shipments.”
| Rural Advocate News | Thursday August 13, 2020 |
China Phase One Deal In Focus As Meeting Approaches China continues its purchases of U.S. commodities under the Phase One agreement signed between the U.S. and China to start the year, with White House economic adviser Larry Kudlow telling reporters the deal is “fine.” Asked if deteriorating ties between the world's two largest economies on other fronts could result in the trade deal being thrown out the window, Kudlow said, "No, no." Despite the tensions between the two sides, Kudlow said that the one area between the two countries that is “fine right now” is trade. “The one area we are engaging is trade," he stated. U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steve Mnuchin and Chinese Vice Premier Liu He are to meet via teleconference to assess the progress on the deal, reportedly on Saturday, August 15. Beijing is pushing for the recent measures targeting businesses including TikTok and WeChat to be on the agenda. Along with agricultural purchases and the dollar-yuan exchange rate, which are among topics to be discussed, Chinese officials intend to bring up Trump's prospective bans on transactions with the two apps on national security grounds, Bloomberg reported.
| Rural Advocate News | Thursday August 13, 2020 |
Thursday Watch List Markets Traders will likely reflect overnight on Wednesday's latest estimates from USDA. Weekly export sales, U.S. jobless claims and an update of the U.S. Drought Monitor start Thursday's reports at 7:30 a.m. CDT. U.S. natural gas inventories are released at 9:30 a.m. The latest weather forecasts and trade news will also be watched, as usual. Weather Showers and thunderstorms will cross the northern and western Midwest, Delta and Southeast Thursday. Rainfall will be light to locally moderate with some severe storm potential in the northern storms. Temperatures will be seasonally warm north, central and southeast and very hot in the Southern Plains and Texas.
| Rural Advocate News | Wednesday August 12, 2020 |
USDA Announces More Eligible Commodities for CFAP The Department of Agriculture Tuesday added additional commodities to the Coronavirus Food Assistance Program. USDA also extended the deadline to September 11 for producers to apply for the program, a request by agriculture organizations. The changes follow USDA review of more than 1,700 responses from the public. The announcement expands the types of specialty crops covered under the program, as well as liquid eggs, frozen eggs and all sheep, and aquaculture and horticulture products. Agriculture Secretary Sonny Perdue says the announcement shows, "President Trump is standing with America's farmers and ranchers to ensure they get through this pandemic." USDA says the changes will give more farmers and ranchers the opportunity for assistance to help keep operations afloat. Farm groups, including the American Farm Bureau Federation, requested the changes in a recent letter to Secretary Perdue. The coalition cited the low number of participants and that roughly half of the near $16 billion of aid is still available. ************************************************************************************ Pandemic and Politics Aside, U.S.-China Trade Ties Continue, For Now Despite an unprecedented downturn in U.S.-China relations during a pandemic, U.S. businesses are not leaving the China market. The U.S.-China Business Council released its annual survey of members Tuesday, which shows nearly 70 percent expressing optimism about the commercial prospects of the market, and 87 percent of companies reporting that they have no plans to shift production out of China. But those numbers contradict a trend of progressively diminishing optimism in the short- to medium-term prospects of the China market. One-quarter of member companies have reduced or stopped planned investment in China in the last year. The top reasons were increased costs or uncertainties from U.S.-China tensions and uncertainty stemming from COVID-19. Full implementation of the Phase One trade agreement is one way to restore confidence as 88 percent of respondents have a positive or somewhat positive view of the agreement, namely because it put a lid on escalating tariffs and added an element of stability to the bilateral relationship. ************************************************************************************ NPPC: COVID-19 Demonstrates Need to Enhance Livestock Risk Protection Insurance Program Pork producers in the United States want the Department of Agriculture to implement enhancements to the Livestock Risk Protection insurance program, known as LRP. The National Pork Producers Council and 26 state pork associations say the changes will mitigate the impact of unexpected declines in hog values from unanticipated events like the COVID-19 pandemic. NPPC President Howard A.V. Roth, says, the changes, if adopted, “would undoubtedly draw more hog farmer participants to the program and help offset losses caused by catastrophic events like the one we are experiencing today.” In a letter to USDA’s Federal Crop Insurance Corporation, NPPC requested an increased subsidy to make the program more affordable to livestock farmers, particularly when a risk management program is most needed but often cost-prohibitive. Further, NPPC seeks expansion of the coverage period to 52 weeks and an increase in the number of head eligible. The current maximum coverage period of 26 weeks, combined with limitations on the number of pigs that can be covered, have “significantly limited program participation.” ************************************************************************************ Organic Farmers Outraged Over FSA Announcement to Reducing Cost Share Reimbursements The Department of Agriculture this week announced Organic Certification Cost Share Program funds to offset the cost of receiving and maintaining organic certification. Applications for eligible certification expenses paid between October 1, 2019, and September 30, 2020, are due October 31, 2020. However, due to expected participation levels and the limited funds available, the Farm Service Agency revised the reimbursement amount available through fiscal year 2023. Certified producers and handlers are now eligible to receive reimbursement for up to 50 percent of the certified organic operation's eligible expenses, up to a maximum of $500 per scope. The National Organic Coalition says the 2018 Farm Bill “clearly set reimbursement rates” at 75 percent of the certified organic operation’s eligible expenses, up to a maximum of $750 per scope. In a statement, the coalition says it is “outraged that USDA’s Farm Service Agency has chosen to reduce reimbursements to organic producers in the midst of a pandemic.” ************************************************************************************ Lawmakers Praise USDA Response to Unsolicited Seeds A group of lawmakers offers thanks to the Department of Agriculture for diligently investigating unsolicited seeds sent to U.S. residents. Led by Representative Jodey Arrington, a Texas Republican, a group of 20 lawmakers sent a bipartisan letter to Agriculture Secretary Sonny Perdue this week. The letter thanks USDA for their collaboration at the local, state, and federal level and continuing efforts to protect the nation’s food security. The letter states, “We encourage USDA to take seriously the potential risks associated with the illegal entry of these seeds as the agency carries out its security and bioterrorism preparedness efforts.” The lawmakers urge USDA to “continue collaborating with all relevant agencies to develop a plan of action to improve the detection of potential bioterrorism threats.” The unsolicited seeds, sent to residents of the U.S., Canada, and elsewhere, are thought to be part of a brushing scam that sellers use to boost reviews for products online. ************************************************************************************ Purdue Announces IoT Collaboration Purdue University will be a partner in a new National Science Foundation Engineering Research Center created to develop advanced agricultural technologies. The new technologies will address food, energy and water security challenges. With a five-year, $26 million grant, the National Science Foundation has established the Engineering Research Center for the Internet of Things for Precision Agriculture. The new center, headquartered at the University of Pennsylvania's School of Engineering and Applied Science, will combine the talents of more than two dozen researchers with Penn Engineering, Purdue University, the University of California, Merced, and the University of Florida. Mark Lundstrom, acting dean of Purdue University's College of Engineering, says, "Our involvement will also represent a new chapter in a long history of collaboration between the colleges of Engineering and Agriculture." Starting in the soil and reaching into the digital cloud, technologies developed through the center will collect, share and analyze data to improve farming practices, maximizing a farm's productivity while minimizing its waste and ecological impact.
| Rural Advocate News | Wednesday August 12, 2020 |
Washington Insider: Impacts of Relief Standoff Bloomberg is reporting this week that there are casualties across the nation regarding the outcome of the “failed negotiations on another trillion-dollar plus rescue package for a U.S. economy mired in a historic, pandemic-induced recession.” Near the top of the list, Bloomberg says, are the families, businesses, and state and local governments that have lost a safety net at a time when some suggest that recent gains in employment “may be transitory as the continuing spread of COVID-19 infection forces a retrenchment.” Much of the debate comes in spite of recent steps taken by the administration to try to mitigate these impacts – such as diverting disaster money to boost unemployment insurance and suspending collection of payroll taxes for some workers. President Donald Trump claims his actions “will take care of, pretty much, this entire situation,” Bloomberg says – but many economists disagree and even the administration's top aides have admitted that the Executive Orders are “no substitute for a legislative deal.” One thing the administration's response didn't do was spark an immediate return to the bargaining table. Treasury Secretary Steven Mnuchin commented Monday that the White House would listen to any proposal put up by Democrats. Speaker Nancy Pelosi, D-Calif., was asked whether talks would resume after two weeks of fruitless negotiations bit offered only that “she hopes so.” The president said Monday night that Democrats have contacted the administration “and want to get together,” and may be more inclined now to negotiate. However, Democratic congressional aides told Bloomberg that “Democratic leaders have had no contact with the White House since Friday.” In the meantime, the administration's executive orders are being criticized as a “thinning lifeline of relief for an already stalling U.S. economic recovery,” although Bloomberg reported that some lawmakers are suggesting that the growing concerns may increase “willingness to return to the table for negotiations.” The administration's redirection of disaster aid would provide an additional $300 a week for the unemployed, plus $100 in state funds—down from the weekly $600 in the expired CARES Act. The president's other major action could potentially have a bigger impact, Bloomberg said as it defers payroll taxes from September through the end of the year for workers who earn as much as $8,000 a month – which could put an extra $600, at most, in employees' pockets. These steps are proving controversial and are widely seen by Democrats as a backhanded way to defund Social Security and Medicare. The payroll tax deferral would “endanger seniors' Social Security and Medicare,” speaker Pelosi said. President Trump said if he's re-elected in November, he may extend the deferral and terminate the tax for some workers. Bloomberg notes that throughout his presidency, the administration has faced a barrage of lawsuits from Democrats and liberal advocacy groups challenging its broad assertions of executive power, usually over contentious issues like his crackdown on sanctuary cities or his refusal to cooperate with congressional investigations. There also are criticisms that Saturday's actions are efforts to wrest core powers away from Congress and are likely to be tied up in litigation over whether they violate core constitutional principles like the separation of powers. In particular, states are wary of the effort to require them to provide part of the aid being authorized. A day after the administration took executive action to offer $400 per week in supplemental unemployment benefits, including 25% that would be required from state coffers, governors pushed back. The leaders of states including New York and Michigan said the President's plan ignores the cash-strapped reality of most states, which have deep budget holes as a result of the coronavirus pandemic. For example, New York Gov. Andrew Cuomo said the president's order was based on “shaky ground legally” and it was “impossible” for states to pay. “The concept of saying to states 'you pay 25% of unemployment insurance' is just laughable,” Cuomo said. “The whole issue here was getting states funding.” Another Democrat, Michigan Gov. Gretchen Whitmer, said requiring states “that are facing severe holes” in their budgets to pay 25% of the funding while the federal government cuts funding for unemployed workers is problematic. “His refusal to provide full federal funding to states across the country to help us combat this virus will hurt the brave men and women on the front lines,” Whitmer said. In addition to the discussions of economic policy, Bloomberg notes that the pandemic-induced downturn that initially had hints of being the sharpest but shortest on record is now displaying “increasing signs of economic scarring” that resemble past slumps. Beneath a headline number showing a better-than-expected gain in July jobs, the government's recent employment report contained indications of underlying weakness. Payrolls remain 13 million below pre-pandemic levels and the number of people out of work for 15 weeks or longer more than doubled from the prior month, to 8 million. The labor-force participation rate fell for the first time in three months and the number of people discouraged by job prospects hit a five-year high. So, we will see. Clearly, both the economic pressures and the tense pre-election climate are affecting the debates now underway. These are tense and involve high stakes, and should be watched closely by producers as they intensify, Washington Insider believes.
| Rural Advocate News | Wednesday August 12, 2020 |
USITC Vote Will Continue Countervailing Duty Investigation On Fertilizer The U.S. International Trade Commission (USITC) voted August 7 that there is a “reasonable indication that a U.S. industry is materially injured by reason of imports of phosphate fertilizers that are allegedly subsidized by the governments of Morocco and Russia.” The USITC decision means that the U.S. Department of Commerce (DOC) will continue its countervailing duty investigations concerning imports of these products from Morocco and Russia. DOC is due to make its preliminary determinations on or about September 21. Some weighed in with the USITC on the impacts that duties could have on farmer, citing potentially higher costs for a key crop input in the coming growing season. However, the request for the investigation was filed by fertilizer producer Mosaic based on the contention that the imports were negatively impact that company.
| Rural Advocate News | Wednesday August 12, 2020 |
CFAP Payouts Just Over $7 Billion But USDA Will Make Rest of Payments Now Payments under the Coronavirus Food Assistance Program (CFAP) total $7.04 billion as of August 10, still short of half of what USDA estimated to be the initial payments based on 80% of the total projected payments. Just over half of total payments made so far have gone to livestock – $3.54 billion – including $3.07 billion for cattle. Payments to non-specialty crop producers are at $1.85 billion with $1.33 billion for dairy. Specialty crop payments are at $305.6 million, 4.34% of total payments. But late Tuesday, USDA announced that it will now make the remaining 20% payments to those who have already received the payments and that it would make 100% to new producers enrolling for the aid. Plus, the signup deadline is now pushed back to September 11 from an original August 28. USDA also added several more commodities to the program, mostly specialty crops, with all sheep now eligible.
| Rural Advocate News | Wednesday August 12, 2020 |
Wednesday Watch List Markets In addition to the latest weather forecasts and any trade news that emerges, traders will notice several reports Wednesday. The U.S. Labor Department issues its consumer price index at 7:30 a.m. CDT. The U.S. Energy Department has its weekly energy inventory report at 9:30 a.m., including ethanol. USDA's WASDE and Crop Production reports are due out at 11 a.m. CDT. The U.S. Treasury updates the federal budget at 1 p.m. Weather Showers and thunderstorms will cross the Northern and central Plains and western Midwest along with the Delta Wednesday. Rainfall totals will be light to moderate. In addition, some of the activity in northern areas could reach severe storm levels. Dry conditions will be in place elsewhere with stressful heat in the Southern Plains and high fire potential in the northwestern Plains.
| Rural Advocate News | Tuesday August 11, 2020 |
Canada Also Receiving Unsolicited Seeds Canadian Agriculture officials warn residents not to plant unsolicited seeds delivered from China, the same seeds sent to the United States. In a statement last week, The Canadian Food Inspection Agency has received reports from more than 750 residents who have received unsolicited seeds. The seeds are likely part of a brushing scam, where scammers send unsolicited products to residents and then write a fake positive review of the product, the same brushing scam in the United States. The CFIA continues to work with the Canada Border Services Agency and Canada Post and its international partners to identify the seed origins and stop the flow of unsolicited seeds into Canada. The CFIA asks Canadians who receive seeds they did not order to put the seeds in a sealed bag and send them to a regional CFIA office, while also refrain from planting, flushing or composting the seeds to prevent spreading. ************************************************************************************ House Ag Committee Seeks Specialty Crop Relief House Agriculture Committee members seek more Coronavirus Food Assistance Program relief for specialty crop growers. The group recently sent a letter to Agriculture Secretary Sonny Perdue with the request. Led by Congresswoman Stacey Plaskett, A Democrat from the U.S. Virgin Islands, the lawmakers say, “The direct payment program under CFAP has failed to provide equitable relief to the specialty crop sector.” The lawmakers say the funds have been particularly difficult to access for specialty crop farmers who are young, socially disadvantaged, or rely on local markets with diversified production practices. As of August 3, 2020, USDA had provided more than $6.8 billion in direct payments to domestic farmers and ranchers. Out of that total, only $270 million has been provided to specialty crop producers, representing less than four percent of overall assistance. To remedy the issue, the lawmakers requested, “USDA must do more to assist the specialty crop sector, particularly those farmers who are young, socially disadvantaged, or sell into local markets.” ************************************************************************************ Trade Commission Says U.S. Harmed by Cheap Imported Fertilizer The United States International Trade Commission last week determined cheap fertilizer imports may harm U.S. fertilizer producers. The commission says cheap phosphate fertilizers imported from Morocco and Russia are allegedly subsidized by their governments. As a result, the U.S. Department of Commerce will continue with its countervailing duty investigations. The investigation could lead to import duties on the fertilizers. However, farm-state Senators disagree with the investigation. In a letter to the Department of Commerce last week, a group of Senators stated, “U.S. farmers depend on affordable phosphate fertilizers to produce a variety of crops.” Led by Kansas Republican Senator Jerry Moran (More-ran), the group notes the current economic downturn, saying, “it is especially important during this downturn in the agricultural economy to avoid imposing unnecessary duties that will limit fertilizer supply options and raise the cost of production for farmers.” Senators from Indiana, Iowa, Mississippi, Montana, Nebraska, Mississippi and Texas joined Moran on the letter. ************************************************************************************ USDA Annual Survey Seeks Feedback from Farmers A new annual survey from the Department of Agriculture seeks feedback from farmers and ranchers. The survey will help USDA understand what it is doing well and where improvements are needed, specifically at the Farm Service Agency, Natural Resources Conservation Service and Risk Management Agency. A selection of 28,000 producers will receive the survey over the next few weeks, but all farmers are encouraged to take the survey at farmers.gov. Under Secretary for Farm Production and Conservation Bill Northey says, “The more responses we receive, the better we can understand what we need to do to improve our services to America’s farmers, ranchers and private forestland owners.” This survey is part of the President’s Management Agenda. It requires High Impact Service Provider agencies across the federal government, including FSA and NRCS, to conduct annual surveys to measure and respond to areas needing improvement. The survey consists of 20 questions and takes approximately 10 minutes to complete. Responses are confidential, and individual responses will be aggregated. ************************************************************************************ Pro Farmer Crop Tour Next Week Pro Farmer scouts will assess this year’s corn and soybean yield potential next week during the Pro Farmer Crop Tour. The tour is an August ritual covering seven midwestern states and capturing the attention of the industry and national media each year. Due to COVID-19, nightly in-person meetings for this year's event will be replaced with live-streamed virtual meetings, making the daily recaps more widely accessible. Pro Farmer calls the event the most thorough inspection of yield potential during a critical time in the growing season. Jeff Wilson of Pro Farmer says, “USDA budget cuts last year halted field sampling that would have happened this year in August, so the Pro Farmer Crop Tour will be the first to measure ear populations and pod counts from actual fields at scale.” Pro Farmer's national crop production estimates will be published Friday, August 22. Free registration is required and is available at profarmer.com. ************************************************************************************ Fuel Prices Decreasing on Limited Demand Recovery Fuel prices are moving lower as the summer driving season comes to an end. The national average price of gasoline fell 1.1 cents per gallon over the last week to $2.16, according to GasBuddy. The national average price of diesel has decreased one cent and stands at $2.41 per gallon over the same period. Patrick De Haan of GasBuddy says, “as summer begins to fade, demand recovery may be limited,” adding, “demand weakens into the autumn, and as the coronavirus situation keeps more kids home and more parents from work, we may see a drop in gas prices as we progress through fall.” Crude oil prices have remained stable over the last six weeks. Some optimism has been returning to the oil patch in the last week as the number of new coronavirus cases in the world’s largest oil consumer have been slowing down, providing a catalyst as hopes rise for U.S. demand to continue recovery, and crude oil inventories fell 7.4 million barrels.
| Rural Advocate News | Tuesday August 11, 2020 |
Washington Insider: US Attacks on China's Trade Policies Escalate Bloomberg is reporting this week that the administration's “rapid-fire escalation of attacks on China – from bans of WeChat and TikTok to sanctions on Hong Kong's top official – underscore that it has dropped past restraint and decided to make confronting Beijing a priority less than 90 days before the U.S. election. The president's increasingly aggressive stance has opened the door for hard-liners in the administration to push policies reflecting their long-held conviction that Communist Party leaders are bent on world domination – and that successive U.S. administrations underestimated the China threat. “A dam has broken in the administration, releasing all the pent-up ideas about how to escalate that conflict,” said Graham Webster, China Digital Economy Fellow at the New America think tank. “It's both a race to change facts on the ground and cement a durable enmity and a tool to distract from things that could damage Trump re-election prospects.” The U.S. ordered the closing of China's consulate in Houston in July, alleging that it had become a hub of espionage and intellectual property theft. Then, Secretary of State Michael Pompeo signaled a new push last week as he urged a “Clean Network” initiative calling for app stores like those run by Apple Inc. and Google to bar any “untrusted” Chinese apps and said U.S. data shouldn't be stored by Chinese cloud-computing companies. And, on Thursday, the president issued executive orders aimed at barring the Chinese-owned TikTok and WeChat in the U.S. On Friday, the U.S. sanctioned Carrie Lam, the top official in Hong Kong, and 10 other Hong Kong and Chinese officials Pompeo said contributed to “brutal oppression” of the city's people. Bloomberg also noted that action on a recommendation from a high-powered group of U.S. regulators that stock exchanges set new rules that could trigger the delisting of Chinese companies is still pending. The administration argues that American investors could be exposed to fraud because Beijing refuses to allow Washington regulators to inspect the audit papers of companies based in mainland China and Hong Kong. In addition, China is sure to be infuriated by the diplomatic trip by Alex Azar, the secretary of Health and Human Services, who is expected to arrive in Taiwan this week in the highest-level visit by a U.S. cabinet official since Washington cut ties with Taipei more than 40 years ago. The successive moves have brought U.S. policy “a long way from earlier in Trump's term, when he bashed China as exploiting the U.S. on trade policy while often praising the leadership of President Xi Jinping as he sought a new trade deal with Beijing.” Bloomberg sees “all that as changed as the president – faltering in his response to the coronavirus, no longer able to boast of a surging U.S. economy and falling in polls of his re-election campaign – began to blame Beijing for allowing the global spread of what he calls the China virus.” The president's new tone dovetails with a deeper determination among hawkish advisers like Pompeo and economic adviser Peter Navarro that now is the time to lock in a laundry list of new restrictions against China. Unspoken is that the rift would endure even if Trump loses in November. “Securing our freedoms from the Chinese Communist Party is the mission of our time,” Pompeo proclaimed at the Richard Nixon Presidential Library in California. It was effectively a disavowal of Nixon's historic opening to China. The administration's conviction about China's abuses is widely shared among American analysts, but not among U.S. allies in Europe who haven't been nearly as willing to follow the U.S. in its more antagonistic approach. They argue that the best approach is to confront China where necessary while cooperating where possible – on issues such as counterterrorism, climate change and nonproliferation. “This endless parade of outrage only serves to highlight the fact that the administration has been unable to induce or coerce China into changing its behavior,” said Daniel Russel, former assistant secretary of state for East Asia and the Pacific, who's now vice president at the Asia Society Policy Institute. “Chinese don't see an incentive in restraint.” Still, China, which has mostly kept to vague warnings of retaliation for U.S. restrictions, has numerous cards to play. Apple sells many of its devices in China and depends on the country for much of its supply chain. And China holds more than $1 trillion in U.S. treasuries, which it could offload. “This is a very complicated calculus for Beijing,” said Michael Hirson, an analyst with New York-based Eurasia Group and formerly the U.S. Treasury Department's chief representative to Beijing. He thinks that China would prefer to wait for the election to pass and to start fresh, ideally with a Biden administration but even with Trump in his second term. So, we will see. Critics of administration trade policy frequently argue that the cascading administration measures are as likely to damage domestic producers and lead to losses of future markets as they are to cause pain in China. Clearly, the toughening of the U.S. position regarding China has strong implications for ag producers and should be watched closely as the emerging policies intensify, Washington Insider believes.
| Rural Advocate News | Tuesday August 11, 2020 |
Extension of CFAP Signup Called For A broad group of U.S. ag and commodity organizations are calling on USDA to extend the Coronavirus Food Assistance Program (CFAP) signup deadline beyond August 28. The groups noted the low level of participation thus far, arguing that it likely reflects a lack of face-to-face interactions at local Farm Service Agency (FSA) offices and the level of producers eligible for aid that have not dealt with the agency previously. USDA reported Monday that just over $7 billion had been paid out so far under the program that was aimed to pay out a total of $16 billion. USDA has been making payments based on 80% of the projected total payment owed to a producer. Based on that, USDA has made about 55% of the projected initial payments to producers.
| Rural Advocate News | Tuesday August 11, 2020 |
Investigation Into The US Cattle Market Structure House Ag Chairman Collin Peterson, D-Minn., and Ranking Member Mike Conaway, R-Texas, have asked USDA to analyze cattle and beef supply chains, working with university policy research centers to analyze issues related to the cattle industry, especially amid stress related to COVID-19. The lawmakers want USDA's Office of the Chief Economist to evaluate cattle market structure, price discovery, price reporting, purchasing mandates, and barriers to entry in the packing sector. They also want the exam to involve experts outside USDA and say want the check to go beyond the issues that USDA has already been investigating relative to cattle market action in the wake of a fire at a beef plant in Kansas and the COVID-19 situation.
| Rural Advocate News | Tuesday August 11, 2020 |
Tuesday Watch List Markets Trading in grains may be quiet ahead of Wednesday morning's WASDE report, but the latest weather forecasts will continue to be watched after severe weather tore through Iowa Monday. The U.S. Labor Department will release its report on July producer prices at 7:30 a.m. CDT and any export news will also be noticed. Weather Tuesday will be mainly dry in the Midwest and Plains after the stormy day with rain and heavy wind damage in portions of the Midwest Monday. Rain will focus in the Mid-South and Southeast. Temperatures will be seasonal in most north and central areas and very warm to hot south. This pattern generally favors row crop progress and spring wheat harvest, with heat stress ongoing in the far southwestern Plains.
| Rural Advocate News | Monday August 10, 2020 |
Pork Exports Lower, Beef Exports Struggle During June June pork exports fell below year-ago levels, the first time that’s happened in 2020. However, pork exports remain at a record pace. Data released by USDA and compiled by the U.S. Meat Export Federation shows that beef exports were down sharply from last year during June. That drop reflects the lingering impact of a temporary slowdown in beef production combined with restrictions on foodservice and weakening economies in major import markets. June’s lamb exports trended higher. “We expected the interruptions in red meat production would continue to weigh on June exports, but anticipated more of a rebound from the low May totals, particularly in beef,” says USMEF President Dan Halstrom. June pork exports hit 207,181 metric tons, three percent lower than last year, while export value dropped nine percent to $516.3 million. Despite the decline, first-half pork exports were 24 percent ahead of last year’s record pace in volume and 29 percent higher in value. June beef exports were close to the May lows, down 33 percent from last year at just-over 79,000 metric tons, with value dropping 32 percent to $492 million. June lamb exports hit the second-largest total of 2020 at 2,229 metric tons, 113 percent higher than a year ago. ********************************************************************************************** Ag Groups say Farmers Need More Time to Access Aid A total of 28 agricultural organizations are asking the USDA to extend the application deadline for the Coronavirus Food Assistance Program. The groups sent a letter to Ag Secretary Sonny Perdue asking that the deadline be pushed past August 28, 2020. The funding, approved through the CARES Act, is providing much-needed financial support to livestock, dairy, non-specialty, and specialty crop producers. The letter says the current deadline “may exclude producers from participating in the program, including producers of commodities that were recently added to the list of eligible commodities, as well as those commodities likely to become eligible through the Notice of Funding Availability process.” Along with extending the deadline, the letter strongly encourages the USDA to increase producer and stakeholder engagement initiatives. The 499,156 applications received so far makeup just 24 percent of all the eligible farm operations. Several commodities have extremely low participation rates, including carrots, oranges, tomatoes, and apples. Those numbers may indicate many farmers aren’t aware that they qualify for CFAP assistance. ********************************************************************************************** Growth Energy Applauds House Push for Biofuel Relief Growth Energy CEO Emily Skor thanks members of the Congressional Biofuels Caucus for their efforts to deliver long-overdue relief for biofuels in the next round of COVID-19 relief. The effort is being led by Collin Peterson of Minnesota, Rodney Davis of Illinois, Dave Loebsack (LOWB-sack) of Iowa, and Roger Marshall of Kansas. Members of the caucus sent a letter to House and Senate leadership calling for negotiators to adopt “language explicitly directing” relief to producers and processors of renewable fuels. “We’re grateful for our congressional champions who are working overtime to stop the bleeding and offer hope for farm communities,” says Skor. “With continued uncertainty around COVID-19, and states like California, Texas, and Florida returning to lockdown, the stakes are far too high to leave any stone unturned.” She’s asking congressional leaders to “work quickly” to protect rural jobs and give rural America the certainty it needs to rebuild the country’s agricultural supply chain. Direct assistance was included in the House-passed HEROS Act, as well as in bipartisan legislation introduced in the Senate. House and Senate lawmakers will try to hammer out the final deal this month. ********************************************************************************************** Trump Adds 10 Percent Tariff on Canadian Aluminum Last Thursday, President Trump announced he has reimposed a 10 percent tariff on Canadian aluminum, saying American’s northern neighbor was flooding the U.S. with the metal. During a speech at a Whirlpool washing machine factory in Ohio, the president said, “Canada was taking advantage of us, as usual. I signed a proclamation that defends the American industry by reimposing aluminum tariffs on Canada.” Trump had exempted Canadian products from tariffs as part of the U.S.-Mexico-Canada Free Trade Deal on the condition that they “not flood the country with exports and kill our aluminum jobs.” While in Ohio, Trump said, “Canadian aluminum producers have broken that commitment.” The Jakarta (Ja-KAR-tah) Post says the tariffs take effect on August 16, in response to what Washington calls a 27 percent surge in aluminum imports from Canada during the past year which threatens to harm our domestic production. Canada’s aluminum-industry officials dispute the U.S. data and urged swift and strong retaliation, asking the Canadian government to consider all of its options. Trump first imposed punitive tariffs on aluminum and steel from Canada in June of 2018 while USMCA negotiations were ongoing. ********************************************************************************************** Corn Checkoff Funded Curriculum Filling the Virtual Learning Gap With another school year drawing closer, many teachers and parents will be looking for solid, professional teaching materials that will lend themselves to a virtual classroom. The National Corn Growers Association is offering a program called “Nourish the Future” which will meet state-learning guidelines. Nourish the Future is a national education initiative developed by science teachers for science teachers, with assistance from the NCGA. The goal is to inspire a network of educators to foster critical thinking, connect students to modern agriculture, and provide sound science-based resources to meet teachers’ and students’ needs in the classroom. Agriculture is a vital partner in engaging students with STEM concepts in ways that directly and indirectly impact their lives. Nourish the Future will help kids learn just how science connects with agriculture. Not only does teaching ag-based curriculum in the science classroom inspire students to solve real-world science issues, reaching students is critical to address the job gap in agriculture-related careers, many of which are unfilled. Through the curriculum, teachers and parents can get free hands-on lessons addressing current science topics. It also invests in teachers by helping them enhance their skills. More information is available at www.ncga.com. ********************************************************************************************** Child ATV Injuries Rising During COVID-19 ATVs are a popular vehicle for both work and play on many farmyards across rural America. The Hagstrom Report says child injuries on all-terrain vehicles typically surge in summer when children are out of school. The National Children’s’ Center for Rural and Agricultural Health and Safety says that surge began earlier than normal when schools shut down because of COVID-19. “When schools went out and kids were home, we saw more injuries than we normally do,” says Charles Jennissen, a pediatric emergency physician and professor at the University of Iowa. “The overall number of injuries are probably four-to-five times higher because many don’t end up in the ER.” The American Academy of Pediatrics says in the U.S., about 40,000 children under the age of 16 are treated in emergency departments for ATV-related injuries each year. The academy recommends that children younger than 16 not operate ATVs. Jennissen says ATVs have a saddle-seat and handlebars that make the vehicle relatively unsteady. A high center of gravity and a narrow track is a combination that makes them a higher risk for rolling over. “More kids in the U.S. under 16 die from ATVs than bicycle crashes,” Jennissen adds, emphasizing the statistic applies primarily to younger children.
| Rural Advocate News | Monday August 10, 2020 |
Washington Insider: Aluminum Tariffs Re-imposed The New York Times and other news media are reporting this weekend that President Donald Trump announced on Thursday that he is re-imposing a 10% tariff on Canadian aluminum “to help struggling American producers,” a step likely to incite retaliation and worsen ties with Canada just one month after the countries' new trade deal went into effect. Speaking at a Whirlpool factory in Clyde, Ohio, the president said that he had signed a proclamation that would reimpose the levy on Canada, accusing the country of “taking advantage of us as usual.” The U.S. imposed tariffs on steel and aluminum from Canada, Mexico and the European Union in early 2018, prompting those countries to respond with their own tariffs on American goods. The levies on imports from Canada and Mexico were not lifted until the following year, when the countries reached an agreement as part of the negotiations toward a new North American trade deal, the Times said. But the United States retained the right to reinstate them if it observed a spike in metal imports, which Trump cited on Thursday. He accused Canadian aluminum producers of breaking their commitment. On Thursday evening, Prime Minister Justin Trudeau announced Canada's response. “In response to the American tariffs announced today, Canada will impose countermeasures that will include dollar-for-dollar retaliatory tariffs,” he wrote. “We will always stand up for our aluminum workers. We did so in 2018 and we will stand up for them again now.” The deputy prime minister, Chrystia Freeland, issued a pointed statement, as well. “In the time of a global pandemic and an economic crisis the last thing Canadian and American workers need is new tariffs that will raise costs for manufacturers and consumers, impede the free flow of trade, and hurt provincial and state economies.” She also rejected the president's national security justification for the measure. “Canadian aluminum strengthens U.S. national security and has done so for decades through unparalleled cooperation between our two countries,” she said. For months, American and Canadian officials have debated whether Canada's rising imports violate that agreement. Imports of Canadian aluminum have risen since the tariffs were lifted last year — although they remain below levels seen within the last few years. The American aluminum industry recently has struggled to compete with producers in countries like China, Russia, Iceland, the United Arab Emirates and Canada that offer state subsidies or benefit from cheap electricity. Today, only a handful of American aluminum smelters, which make raw aluminum out of bauxite, still operate. Supporters of the tariffs say that imports from Canada and the economic slump that accompanied the pandemic have once again thrown the industry into disarray. Two American companies, Century Aluminum and Magnitude 7 Metals, have lobbied intensely for the tariffs to be re-imposed although the rest of the aluminum industry, which has operations spread around the globe, including in Canada, has fought against the measure. The multitude of industries that use aluminum to make products including cars, beer cans and washing machines, have also argued against the levies saying they increase costs and make their products less competitive globally. Even Whirlpool, the appliance maker where Trump made his announcement on Thursday, has seen its costs for raw materials rise as a result of the metal levies. In June, executives from more than 15 of the world's largest aluminum companies, including Alcoa, Constellium and Novelis, wrote to the president arguing against the tariffs. “Fully 97% of U.S. aluminum industry jobs are in mid-and-downstream production and processing,” the letter said. “These jobs depend on a mix of domestic and imported primary aluminum, including from countries like Canada.” Jim McGreevy, the chief executive of the Beer Institute, said his group strongly opposed the decision, especially amidst a global pandemic that has reduced overall sales while simultaneously increasing demand for aluminum cans.” Myron Brilliant, the executive vice president of the U.S. Chamber of Commerce, called the move “a step in the wrong direction” and urged the administration to reconsider. The administration's metal tariff policy is “totally misguided,” said Jean Simard, the president and chief executive of the Aluminium Association of Canada. “We're still in a COVID-related downturn.” Simard said that shipments of basic aluminum ingots to the United States from Canada had risen after automakers and other importers of more sophisticated aluminum closed their factories because of the pandemic. But he said that with renewed manufacturing in the United States, the market was rebalancing. According to Simard's group, exports of basic aluminum ingots from Canada declined 16% in June and fell 40% last month. Currently, according to Simard, the U.S. aluminum production capacity can meet only about one-sixth of the country's consumption of the metal. He also said that the Canadian aluminum industry will push the Canadian government to apply tariffs on American-made products. So, we will see. The decision to impose duties on imported metals was controversial before and likely will continue to be — and should be watched closely by producers as the season advances, Washington Insider believes.
| Rural Advocate News | Monday August 10, 2020 |
APHIS Seeks Feedback on List Of Animal And Plant Pest And Disease Threats USDA's Animal and Plant Health Inspection Service (APHIS) is seeking feedback on its proposed list of pests and diseases of concern that are likely to pose a high risk to U.S. agricultural and natural resources. The 2018 Farm Bill requires pest- and disease-planning activities that mirror the extensive planning efforts APHIS already performs. Specifically, it requires APHIS to develop a uniform list of pests and diseases that represent the gravest threat to the United States and to develop comprehensive response plans to ensure federal and state governments are prepared to respond to them. The agency will review comments from the public about the list, including suggestions of pests or diseases that should be added or removed. In providing comments, individuals should keep in mind that the Farm Bill definition of a pest or disease of concern limits this list to those that are “likely to pose a significant risk to the food and agricultural critical infrastructure sector” and is not meant to be an exhaustive list of all possible pests or diseases.
| Rural Advocate News | Monday August 10, 2020 |
USDA Outlines Actions for Consumers Receiving Unsolicited Seeds USDA is urging anyone who receives an unsolicited package of seeds to mail those seeds to the locations in each state. Persons receiving the seeds are instructed to place the unopened seed packet and any packaging, including the mailing label in a mailing envelope. If the seed packets are open, first place the seeds and their packaging into a zip-lock bag, seal it, and then place everything into a mailing envelope. Those sending seeds are asked to include their name, address and phone number so a state or federal agriculture official can contact them for additional information, if needed. There is a listing of information by state that has a link for information to be entered on line and either an address to send the seeds to or an advisory that the information will be provided once an electronic submission is made. If there is no mailing address listed, consumers are advised to contact their APHIS State plant health director to arrange a no-contact pick up or to determine a convenient drop-off location.
| Rural Advocate News | Monday August 10, 2020 |
Monday Watch List Markets The latest weather forecasts continue to get the first attention of the day with row crops filling and spring wheat in early harvest. USDA's weekly report of grain export inspections will be out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Attention will focus on USDA's crop ratings ahead of Wednesday's next round of supply and demand estimates. Weather Light to locally moderate showers are in store across the Midwest Monday. Coverage will be most extensive in the southeastern Midwest; however, some dry areas of the western Midwest may receive some precipitation as well. Other crop areas will be dry. Temperatures will be seasonal north and very warm to hot central and south with heat stress to crops and livestock.
| Rural Advocate News | Friday August 7, 2020 |
Farm Futures Releases 2020 Producer Crop Forecast Large U.S. ending corn stocks could swell even larger this fall, and not just because of increased yields. A bumper crop combined with diminished demand due to the pandemic could boost new crop ending U.S. stocks to the highest level in 33 years. A new survey by Farm Futures found 2020 corn yield projections to increase 11.5 bushels per acre from 2019 to 178.9. Based on updated acreage estimates from The Department of Agriculture's June Acreage report, Farm Futures' 2020 corn yield estimate would raise 2020 corn production to 15.03 billion bushels, 32 million bushels higher than July 2020 World Agriculture Supply and Demand Estimates. Soybean yield prospects are also more favorable than last year. Growers estimated 2020 yields at 51.0 bushels per acre, up 3.6 from 2019. If realized, that would put 2020 soybean production at 4.233 billion bushels, 98 million bushels higher than July 2020 WASDE projections and 19 percent higher than 2019 production. Farm Futures surveyed 1,044 respondents on July 14-27 via an email questionnaire. ************************************************************************************ House Ag Lawmakers Seek Aid for Sheep, Lamb Producers House Agriculture Committee leaders want the Department of Agriculture to assist sheep and lamb producers impacted by the coronavirus pandemic. In a letter to Agriculture Secretary Sonny Perdue, the lawmakers say the closure of the nation’s second-largest processor, represents an estimated 20 percent of the nation’s processing capacity for sheep producers. The closure, the letter says, “pushes USDA to help lamb and sheep farmers and ranchers find alternate processing and marketing options immediately.” The closure comes at a time when the sheep industry was already forecast to lose more than $350 million due to COVID-19-related market declines. The lawmakers say USDA has the ability to aid sheep producers in finding other options for marketing and processing in a way that keeps products flowing through the supply chain. The letter was signed by Committee Chairman Collin Peterson, a Democrat from Minnesota, and Ranking Member Mike Conaway, a Texas Republican, and other committee members. Conaway states, “it’s critical that we provide support to help them through this difficult period.” ************************************************************************************ House Ag Member Tests Positive for COVID-19 Rodney Davis, a Republican U.S. Representative from Illinois, has tested positive for COVID-19. In a letter on his website, Davis says, “Other than a higher-than-normal temperature, I am showing no symptoms at this time and feel fine.” Davis tested positive Wednesday morning after discovering a higher than normal temperature. Davis is a member of the House Agriculture Committee and the House Transportation and Infrastructure Committee, and is Ranking Member of the Subcommittee on Highways and Transit. He had recently voiced his concerns to Congress that members follow Centers for Disease Control guidelines. Davis says throughout the pandemic, he’s done twice daily temperature checks, “because serving in Congress means I interact with many people, and it’s my duty to protect the health of those I serve.” Having consulted with the Office of the Attending Physician of Congress and local county health officials, his office is contacting constituents Davis met with in-person within the previous 48 hours before his test, per CDC guidelines. ************************************************************************************ Use of Corn as an Acceptable Feedstock Clarified by Energy Department In the most recent Funding Opportunity Announcement, the Department of Energy’s Bioenergy Technologies Office clarified that corn grain is an acceptable feedstock. This means starch derived sugars, specifically starches from field and feed corn, were clarified as acceptable. National Corn Growers Association Market Development Director Sarah McKay says, “This is an important evolution in how DOE interprets legislative intent,” adding the clarification will, “lay the groundwork and develop a solid foundation for future markets for corn.” NCGA says the timing of the announcement is important because it means those looking for funding opportunities through the Plastics Innovations Challenge can use corn as a base for recycling technologies in the manufacture of new plastics. The Bioenergy Technologies Office works to develop industrially relevant technologies to enable domestically produced biofuels and bioproducts. An example of a product that could now be developed to use corn grain as a feedstock is single-use plastics such as water bottles and plastic bags. ************************************************************************************ Environmental Groups: EPA Should not Approve Dicamba Without Further Research Environmental groups say the Environmental Protection Agency should not renew over-the-top dicamba use without further independent research. A new report from the National Wildlife Federation and others suggest dicamba herbicides "pose serious threats to wild plants and the wildlife that depend upon them." The report says the EPA should not renew over-the-top product registrations unless and until independent research shows with certainty that dicamba formulations will not cause off-target injury to crops and wild plants, including from vapor drift. The groups say there is mounting evidence suggests that current dicamba products and uses are causing unreasonable adverse effects on the environment, even when used as specified on the labels. The report advocates for diversifying weed management strategies to improve resilience, including choosing crop varieties that are competitive with weeds, adjusting planting dates and depths of crops to help get ahead of weed growth, and managing nutrients in ways that give crops the competitive edge. ************************************************************************************ Panera Founder Joins FBN Board Farmer’s Business Network this week announced that Ron Shaich (shake), founder and former Chairman and long-time CEO of Panera Bread, has invested in the company and will join its Board of Directors as an independent director. Shaich stepped down as CEO of Panera in 2017. Shaich, personally and through his investment, is directing a range of long-term strategic investments in consumer-facing growth companies. He says, "I'm inspired by the FBN mission to improve the profitability of family farmers around the world, especially right now, given that many of them are struggling to survive.” FBN calls Shaich a “groundbreaking entrepreneur and CEO who built one of the most successful public companies in history.” Adding Shaich to the Board follows the announcement Monday that FBN had closed $250 million in Series F funding. Farmers Business Network also recently acquired a similar Australian company. FBN is self-described as the leading direct-to-farm ag tech platform and farmer network.
| Rural Advocate News | Friday August 7, 2020 |
Washington Insider: Fight Over Unemployment Relief The Hill is reporting this week that the pandemic is exposing the flaws and shortcomings of how the U.S. provides unemployment insurance -- and that disagreement over proposed fixes are primary holdups to a new bill. The Hill notes that the federal employment safety net includes individual systems for every state plus the District of Columbia, Puerto Rico and the Virgin Islands. More than 30.2 million Americans were on some form of unemployment insurance as of mid-July, with the Labor Department reporting a growing number of new applications in subsequent weeks. However, the expiration last week of a $600 weekly add-on to state benefits plunged many of those vulnerable workers into financial peril. Congressional Democrats and Trump administration officials are now deadlocked over negotiations for a broader package that's expected to include some form of federal unemployment benefits -- but how to do that is an enormous problem. Short-staffed unemployment offices across the U.S. rely on widely differing versions of outdated technology and would face challenges from implementing either a scaled-down or more complicated approach to the weekly payments. Economists and labor market experts also warn that any solution that emerges from the negotiations could take weeks, if not months, to get up and running, risking a potentially catastrophic fiscal cliff for tens of millions of U.S. households. Douglas Holtz-Eakin, former director of the Congressional Budget Office and a White House economist under former President George W. Bush said that “states, collectively, seem to have not kept up the systems and we now have a big problem because of that.” The unprecedented size and speed of the pandemic-driven economic collapse has posed a brutal challenge for state unemployment agencies. After 10 years of steady economic expansion, the labor market quickly went from the lowest unemployment rate in 50 years to the highest level of joblessness since the Great Depression. New claims for unemployment benefits were averaging roughly 200,000 nationwide a week before the pandemic -- a manageable level for state agencies that had largely been neglected during the longest stretch of growth in modern U.S. history. However, the coronavirus lockdowns spurred 3.3 million new claims between March 15 and March 22, a then-record that would be doubled the following week. Before the COVID-19 outbreak, the previous record was 695,000 from the first week of October 1982. A little more than four months after the pandemic hit, state agencies are now processing roughly 2 million new claims a week for both unemployment insurance and Pandemic Unemployment Assistance, a program designed to cover those who don't qualify for typical benefits. “On some level, you can't really blame states for not being prepared for that level of onslaught,” said Michele Evermore, senior policy analyst at the National Employment Law Project. “Usually, you see the recession starting up and state agencies say 'You know, this looks like a recession here, so let's start to staff up.' This came on all at once, so we've had these neglected, antiquated systems and then there's all these other stressors.” Processing the massive surge of unemployment claims on shoddy technology would have been hard enough for states. Adding enhanced benefits and PUA claims to the mix strained state agencies even more. “It took time to hire and train new staff who could deal with the volumes of the calls, and all in a pandemic, when face-to-face contact and training and being together in office were not possible,” said Julia Pollak, labor economist at job recruitment and posting company ZipRecuriter. Now, defining enhanced unemployment benefits are among the biggest obstacles to reaching a deal on what's likely to be the last coronavirus-relief package before the election. While President Trump and Republicans are divided over how and whether to extend the federal boost, Democrats are largely united behind extending the benefits and reducing them gradually along a curve tied to the unemployment rate. Speaker Nancy Pelosi, D-Calif., has called for including such a mechanism, known as an automatic stabilizer in the coronavirus package being negotiated. Rep. Don Beyer, D-Va., vice chair of the Joint Economic Committee, introduced a separate bill designed to tackle economic downturns beyond the coronavirus recession that would establish a tiered system for reducing the federal benefit in line with a state's unemployment rate. “We talked to economists all across the country and virtually everyone we talked to said this makes the most sense.” Republicans have proposed replacing the flat $600 weekly boost with a percentage of the worker's pre-pandemic earnings in addition to what is prescribed by each state. While the wage replacement is more tailored, there is concern that making the necessary calculations for each claimant could overwhelm an already teetering system. So, we will see. Pressures to define and implement a powerful system to avoid the worst impacts of the weakened economy are continuing to grow, but participants in the debate are increasingly dug in to defend their position -- and, time is running out. This is an extremely significant fight producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Friday August 7, 2020 |
US Will Take Action Under USMCA If Needed On Several Products Written responses that U.S. Trade Representative Robert Lighthizer provided to the Senate Finance and House Ways and Means Committees from his June 17 appearances have been released and contain some common themes. When it comes to dairy with Canada and labor or biotech issues with Mexico, Lighthizer repeatedly assured that his office will pursue action under U.S.-Mexico-Canada Agreement (USMCA) provisions “if necessary.” Relative to the Phase One agreement with China, Lighthizer also stated several times, “China's commitments to purchase U.S. food and agricultural products are annual commitments for calendar years 2020 and 2021, so we will not be able to assess definitively whether China has fulfilled these commitments for 2020 until the end of this year.” However, Lighthizer said that they have been “following China's progress in purchasing U.S. food and agricultural products very closely and have been discussing our concerns with our Chinese counterparts as they arise. We have made it clear that China needs to find a way to satisfy all of its purchases commitments under the Phase One Agreement.”
| Rural Advocate News | Friday August 7, 2020 |
Drop In Ag Exports Sets New Record Monthly Trade Deficit U.S. agricultural exports in June fell to $9.96 billion, the smallest since May 2016 and down nearly 4% from May, while imports eased to $11.09 billion, down 2.5% from May, setting a new monthly record trade deficit of $1.13 billion. This marked the second month in a row for a new record trade gap for the sector that has historically recorded trade surpluses on a monthly and annual basis. June was the fourth month in a row with a trade deficit and marked the fifth out of the last six months that has happened. The results brought cumulative ag exports for Fiscal Year (FY) 2020 to $102.22 billion against imports of $100.49 billion for a trade surplus of just $1.734 billion. In order to meet USDA's FY 2020 ag export forecast of $136.5 billion, exports would now have to be average $11.43 billion over July-September. To meet the ag import forecast of $130.2 billion, imports would have to average $9.9 billion over July-September. Both forecasts will be adjusted in USDA's update due August 26, with the export outlook likely to be trimmed and the import forecast expanded, setting the stage for an annual trade deficit for agriculture, something that has not happened based on data going back to the mid-1970s.
| Rural Advocate News | Friday August 7, 2020 |
Friday Watch List Markets The U.S. Labor Department will report on the change in nonfarm payrolls for July and also on the U.S. unemployment report at 7:30 a.m. CDT., last seen at 11.1% in June. The latest weather forecasts and any trade news will continue be watched closely. Weather Friday will find showers and thunderstorms in portions of the Northern and southeastern Plains along with the northern Midwest. Other primary crop areas will be dry. Temperatures will be seasonal in the Midwest and above normal in the Plains. The warmer pattern will spread across the entire central U.S. going through the next week.
| Rural Advocate News | Thursday August 6, 2020 |
Energy Department Recommends Granting Partial Retroactive Waivers The U.S. Department of Energy has made its recommendations to the Environmental Protection Agency regarding retroactive blending waiver requests. Two sources say the DOE recommended to the EPA that “a number” of those requests be partially granted. However, those anonymous sources couldn’t provide further details. The EPA is in charge of granting those exemptions, but the Department of Energy has to review the applications first and then make its recommendations. An Agriculture Dot Com article says the move could help bring those smaller refiners into compliance with a court ruling earlier this year that requires waivers granted since 2010 to take the form of an extension. Most waiver recipients in recent years haven’t continuously been granted those waivers. At present, there are 58 pending waiver requests from refiners for the years 2011-2018. “EPA has received initial feedback from the Department of Energy on certain petitions for small refinery exemptions for the past compliance years under the Renewable Fuel Standards Program,” says EPA spokesperson Molly Block. “Our staff is reviewing it.” The Department of Energy didn’t respond to requests for comments. Biofuel advocates say the blending waivers hurt the overall demand for corn-based ethanol. ********************************************************************************************** China, U.S. Will Review Trade Deal, Air Grievances on August 15th U.S. and Chinese officials will review the Phase One trade deal implementation and likely air grievances that both sides have on August 15th during a video conference. Two people familiar with the plans told Reuters that U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He, the principal negotiators of the deal, will participate in the meeting, which will be a six-month review of the deal that became active on February 15th. The Wall Street Journal initially reported the details of the meeting between the two countries. Under the deal, China pledged to boost purchases of U.S. goods by $200 billion over 2017 levels. Those purchases were to include agricultural and manufactured products, along with energy and other services. But China has been hit hard by the coronavirus recession and fallen far behind the pace it needs to meet the first-year goal of a $77 billion increase. Imports of farm goods have also been lower than the 2017 level the agreement was based on. China’s ambassador to the U.S. says they always had a plan in place for high-level talks six months into the pact. U.S. President Donald Trump had threatened to end the deal over China’s handling of the coronavirus. Tensions have risen over U.S. sanctions related to China’s crackdown on Hong Kong. ********************************************************************************************** Farm Bankruptcy News Mixed During COVID-19 Farm bankruptcy filings totaled 580 between June of 2019 and June of 2020, an eight percent increase over those 12 months. The American Farm Bureau says a six-month comparison shows the number of new Chapter 12 bankruptcy filings slowed during that time. The Midwest, Northwest, and the Southeast are the regions hardest hit by bankruptcies, accounting for 80 percent of the total U.S. filings. Wisconsin was the number one state with 69 filings, followed by 38 in Nebraska. Georgia and Minnesota each had 36 filings. While the year-over-year filings increased during June, the number of new filings slowed during the first six months of this year compared to the first half of 2019. From January to June of 2020, there were 284 new Chapter 12 bankruptcy cases, 10 fewer than the same time last year. The reduction in filings coincides with the aid distributed through the CARES Act that compensated farmers and ranchers for losses incurred over the first six months of the year. “The fact that we saw bankruptcy filings slow during the first half of this year shows how important the economic stimulus efforts have been to keeping farmers above water,” says AFB President Zippy Duvall. “But the economic impact of the pandemic is far from over.” ********************************************************************************************** Democrat Bill Would Ban Pesticides to Protect Farm Workers Legislation introduced by two Democratic lawmakers would ban chlorpyrifos (Klor-PEER-ih-fohs) and other pesticides that cause concern among farmworker groups due to negative health effects. The bill from Tom Udall of New Mexico and Joe Neguse (Neh-GOOS) of Colorado would ban organophosphates. An article on The Hill Dot Com website says that’s a group of pesticides that attack the nervous system and that research has shown has damaging effects on farmworkers. It includes chlorpyrifos, which the Environmental Protection Agency has been under pressure to ban, thanks to a series of lawsuits. The legislation also would ban neonicotinoids (Neo-ni-kuh-ti-noids), which have damaging effects on vulnerable bee populations. “The farmworkers who feed our country face dangerous chemical exposure without recourse to protect their health, and surrounding communities bear the frontline costs of pesticide runoff in their land, water, and air,” says Udall. The EPA under the Trump Administration has repeatedly issued emergency exemptions allowing farmers to continue using pesticides that are otherwise restricted. The bill would bring that to an end, as well as allow local communities to block some pesticides without being preempted by state law. It also places more requirements on farms and chemical companies. ********************************************************************************************** USDA Extends Deadline, Defers Interest Accrual Due to COVID-19 The USDA’s Risk Management Agency says it will authorize Approved Insurance Providers to extend premium deadlines for fee payments, defer the resulting interest accrual, and give them other flexibilities. The goal is to help farmers, ranchers, and insurance providers who are affected by COVID-19. “USDA recognizes farmers and ranchers have been severely affected by COVID-19 this year and to help ease the burden on these folks, we’re continuing to extend flexibility for producers,” says Ag Secretary Sonny Perdue. “These flexibilities will support health and safety while also ensuring the federal crop insurance program continues to serve as a vital risk management tool.” AIPs can provide their policyholders with additional time to pay the premium and administrative fees and waive the accrual of interest to the earlier of 60 days after their scheduled payment due date or the termination date on policies with premium billing dates between August 1 and September 30, 2020. USDA is also authorizing insurance companies to provide up to an additional 60 days for policyholders to make payment and waive additional interest for Written Payment Agreements due between August 1 and September 30, 2020. ********************************************************************************************** ASA Returns to its Roots for 100th Anniversary The American Soybean Association returned to its birthplace to celebrate its 100th year of existence. The group celebrated a century of coordinated efforts and ensuring successes on behalf of U.S. growers. With support from the Indiana Soybean Alliance and the family who helped to launch one of the nation’s strongest agricultural advocacy offices, ASA celebrated its 100th anniversary on the Indiana farm where it all started. The celebration included a small but significant historical marker dedication and tours of heirloom soybean plots. ASA first formed when the three Fouts brothers hosted their first Corn Belt Soybean Field Day at their “Soyland Farms” operation in Camden, Indiana, on September 3rd of 1920. That event drew nearly 1,000 farmers and their families from six states, all of whom were interested in learning more about an emerging new commodity called soybeans. The National Soybean Growers’ Association, later renamed the American Soybean Association, was formed that very day. The outdoor dedication ceremony was streamed live across the country for soy supporters to celebrate safely around the nation.
| Rural Advocate News | Thursday August 6, 2020 |
Washington Insider: The US Economy Needs More Support Than Originally Thought Bloomberg is reporting this week that work on the next coronavirus subsidy bill has intensified – but that White House and Democratic negotiators driving toward a deal on a final package still must overcome a raw mix of election-year pressures, internal GOP splits and a profound lack of trust between the parties. The report said that the president's sinking poll ratings amid the virus's resurgence have Democrats sensing they have leverage—and are boosting internal Republican tensions over additional aid spending on top of the almost $3 trillion previously approved. Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., have recently been playing “hardball,” dismissing out of hand smaller-scale proposals floated by the president's chief of staff, Mark Meadows, as well as a $1 trillion plan cobbled together by Senate Majority Leader Mitch McConnell, R-Ky. Both sides declared they were making progress on Tuesday as they started to exchange detailed offers and agreed on a goal of reaching a deal by the end of the week, teeing up possible votes next week. The negotiations on new subsidies are expected to continue after Pelosi and Schumer meet with the postmaster general later in the week in an effort to provide aid for the Postal Service and state governments. This is an effort to support for vote-by-mail operations, a top Democratic priority opposed by the president who has blasted the use of mail-in ballots for weeks. Instead of McConnell or Treasury Secretary Steven Mnuchin, who has previously cut several deals with Democrats, the administration's lead negotiator for this round is Meadows, the former House Freedom Caucus chairman. Senate Appropriations Chairman Richard Shelby, R-Ala., praised Meadows for being engaged with lawmakers but noted his inexperience in such talks. “This is his first deal,” Shelby said. Meadows initially proposed a stripped-down plan tying unemployment and school aid while negotiations continued, but Democrats are insisting on a bigger plan that they say “meets the moment.” In turn, he has floated potential executive actions Trump could take on his own if the talks break down. In an indication of the seriousness of the current debate, The Hill said, is the fact that Senate Republicans expect to remain in session next week if the negotiations over the "impasse" continue. A new schedule, described by GOP senators on Tuesday, means the Senate would be in Washington for at least the first week of a previously scheduled four-week break that had been expected to start on Friday. The House left town last week. House Majority Leader Steny Hoyer, D-Md., has said he will call House members back to Washington with a 24-hour heads-up once there is an agreement ready for a vote. McConnell hasn't announced a change to the Senate's schedule. Asked about being in session next week, a spokesman for the GOP leader said, "the Leader will let everyone know when we have an update and/or guidance." Negotiators continue to assert that they are making progress in the most recent talks but that “they still remain far apart on significant sticking points like unemployment insurance, state and local aid and McConnell's red line of liability protections for businesses.” In the meantime, pressure on Congress to complete the new package was boosted by comments by Fed officials this week who said the U.S. economy needs more support than originally thought and that “it's becoming quite clear that the virus will be with us longer and more vigorously than anyone had hoped for,” Mary Daly, president of the Federal Reserve Bank of San Francisco said. The level of support that the economy is going to need just has to be higher, she said. “As we get more information about how the virus will affect the economy, we will be thinking about how can we use forward guidance to telegraph to people, to signal to markets, households and businesses what our intentions are in terms of supporting the economy going forward,” she said. During the last expansion, the Fed saw joblessness fall well below what it had estimated to be full employment. At the same time, inflation never consistently reached the central bank's 2% goal. This lesson can guide policy makers in the recovery from the coronavirus crisis, Daly said. She also noted that we have room to let the economy go well beyond what people think is its maximum level of employment and we can then involve many, many individuals who people have traditionally thought were structurally unemployed, unable to get jobs, she said. “The long tail of the pandemic will be that we have many, many people who remain on the sidelines unless we take this opportunity to educate these people, get them the training they need.” So, we will see. The increasingly toxic politics ahead of the election clearly add uncertainty to measures to offset virus impacts, as well as debates on trade and economic policy -- fights that producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Thursday August 6, 2020 |
Stabenow Will Not Back More Ag Aid Without Nutrition Funding Bump Senate Ag Committee Ranking Member Debbie Stabenow, D-Mich., on Tuesday reiterated her stance to Politico that she will not back any additional aid for farmers and ranchers in the next COVID-19 aid plan unless there is an increase for the Supplemental Nutrition Assistance Program (SNAP). “There's not going to be more if we can't help hungry families,” she told Politico. “I've made it very clear that I will object to anything else being done in the agriculture space if we do not get a basic increase in SNAP.” This is a stance that Stabenow has taken since late July as the Senate plan was being developed. However, she noted it appears Republicans are “now indicating an openness” and that there are “good discussions going on right now.” Her frustrations are tied to USDA so far not doling out most of the aid in the CARES Act that was passed in March. She said she wants to keep the aid mix around 50-50 for farm aid and nutrition assistance. “I'd like to keep it in that range,” she noted. Stabenow has been critical of USDA aid efforts, in particular the Market Facilitation Programs run for 2018 and 2019, maintaining that aid was unevenly distributed across the sector and was tilted toward farmers that had not suffered huge trade losses.
| Rural Advocate News | Thursday August 6, 2020 |
US, China High-Level Talks Set For August 15 U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He will participate in talks August 15 to assess the progress of the Phase One agreement with China, according to sources quoted by the Wall Street Journal. The two will meet via videoconference with the focus expected to be on China's purchase commitments of U.S. agriculture, energy and manufactured goods while China is expected to raise the issue of the U.S. cracking down on Chinese tech companies. This comes as China's Ambassador to the U.S. Cui Tiankai on Tuesday observed that the COVID-19 situation has impacted normal trade flows. Tiankai also commented that the “two economic teams have been in contact with each other,” a view that our trade sources have repeatedly signaled. He also noted that China was “doing its best to implement the deal.” The session also comes as Chinese President Xi Jinping and other top leaders are set to meet for two weeks in the Chinese resort town of Beidaihe, a session typically aimed at discussing strategies and setting policies for key issues.
| Rural Advocate News | Thursday August 6, 2020 |
Thursday Watch List Markets Weekly export sales, U.S. jobless claims and an update of the U.S. Drought Monitor are all set for 7:30 a.m. CDT. U.S. natural gas inventory is due out at 9:30 a.m. Of course, the latest weather forecasts and any trade news will also be closely watched. Weather Thursday features shower and thunderstorm activity in the central and Southern Plains through portions of the western Midwest. Rainfall will be mainly light. Other primary crop areas will be dry. Temperatures continue to show seasonal to below normal values north and central and very warm to hot south. Stressful heat is again in store for most of Texas.
| Rural Advocate News | Wednesday August 5, 2020 |
August Ag Economy Barometer Results Farmer sentiment in July was virtually unchanged from a month earlier, according to the Purdue University-CME Group Ag Economy Barometer. The index rose just one point to a reading of 118. The small change in the barometer left it 30 percent below its February 2020 peak and 23 percent below its level a year ago. Although there was little change in the barometer this month, there was a shift in producers' perspective on current vs. future conditions. The Index of Current Conditions rose 12 points to 111 while the Index of Future Expectations fell to a reading of 121, five points lower than in June. The Ag Economy Barometer is calculated each month from 400 U.S. agricultural producers' responses to a telephone survey. This month's survey was conducted from July 20-24, 2020. Organizers of the index say Producers were somewhat less concerned about the impact of coronavirus on their farm's profitability. However, two-thirds of respondents still said they feel Congress needs to pass another bill to provide economic support to farmers. ************************************************************************************ Barchart Releases August U.S. Yield Forecasts for Corn and Soybeans Barchart, a commodity data and technology service provider, updated its cmdty (commodity) Yield Forecast this week. The August end of season yield prediction sits at 174.8 bushels per acre for corn and 49.2 for soybeans. This represents an increase in forecasted yield relative to the July report, which predicted end of season yield for corn 173.8 and 48.8 for soybeans. Barchart’s Head of Strategy, Keith Petersen, says, “Growing conditions throughout the country remain strong, and this year’s forecasted crop has been more heavily impacted by changing expectations around acres planted than by weather.” Peterson says the national forecast remains steady this year, but adds there is some yield variance at the state level which can impact local basis conditions heading into the fall. Released on the first Tuesday of each month during the growing season, the forecast allows users to get insights to guide their business decisions ahead of USDA's World Agriculture Supply and Demand report. ************************************************************************************ Trump Signs Rural Telemedicine Executive Order President Donald Trump signed an executive order earlier this week that his administration says will provide millions of citizens with healthcare services during a global pandemic. The executive order seeks to expand access to telehealth services during the COVID-19 pandemic, especially in rural communities. The White House says the expansion of telehealth services offers benefits to Americans living in rural communities, who might otherwise not have access to these services. The order requires the Department of Health and Human Services to announce a new payment model testing innovations that empower rural hospitals to transform healthcare in their communities on a broader scale. To improve connectivity, the president's order also directs the federal government to launch a joint initiative in 30 days to improve the healthcare communication infrastructure and expand rural healthcare services. The White House says these telehealth expansions build on the work the Centers for Medicare and Medicaid Services has done during the public health emergency to more than double allowable telehealth services. ************************************************************************************ Trump Signs Great American Outdoor Act President Donald Trump signed the Great American Outdoors Act Tuesday. In a signing ceremony, Trump says the legislation "builds on my administration's unwavering commitment to conserving, and the grander, the splendor, of god's creation." The bill establishes a National Park and Public Lands Restoration Fund to provide up to $9 billion to fix backlogged maintenance at national parks and other federal lands. The bill also guarantees $900 million per year for the Land and Water Conservation Fund. The fund helps fund the main federal land programs in the United States. The National Wildlife Federation says the bill will "protect public lands and expand opportunities for outdoor recreation.” However, the legislation may be problematic for ranchers who use public grazing lands. The Public Lands Council calls the bill a “land grab.” PLC says the bill gives federal agencies free rein to spend a minimum of $360 million per year solely to acquire new private land without any oversight from Congress. ************************************************************************************ American Dairy Coalition Calls for Whole Milk to Return to Schools The American Dairy Coalition wants to bring whole milk back to U.S. school lunchrooms. According to the proposed Dietary Guidelines for Americans 2020-2025, whole milk will continue to be banned from schools across the nation. The U.S. Dietary Guidelines are only updated and published every five years. The coalition says, “the time is now to ensure whole milk can once again be offered as a choice in school nutrition programs.” In 2017, Congress authorized $1 million of taxpayer money for a third-party review, conducted by the National Academy of Sciences, Engineering and Medicine. It was the first-ever outside peer review of the Dietary Guidelines process. The coalition says the report showed how only 20 percent of the government’s nutrition recommendations are based on “strong” science, according to the government’s own standards. The coalition says the report “was vastly ignored,” adding “Continuing the ban on whole milk based on out-of-date science and a clearly unbalanced, one-sided subcommittee on saturated fats is appalling.” ************************************************************************************ ASTA Promotes Safe Handling of Treated Seed During Harvest As harvest begins across the country, the American Seed Trade Association is reminding farmers about the importance of taking precautions to ensure treated seed does not enter the grain supply. An ASTA says proper management of treated seeds includes removing all treated seed left in containers and equipment used to handle harvested grain, and disposing of it properly. ASTA and other stakeholder groups have developed recommendations to assist those involved in the process of treating, handling, transporting, or planting treated seeds. These recommendations are available at seed-treatment-guide.com. Recommendations include following label directions, minimizing dust, eliminating weeds, "BeeAware” of nearby bee colonies, and cleaning and removing treated seeds from equipment and bins. ASTA says the use of seed treatment technologies, including neonicotinoid insecticide treatments, is an effective tool to provide the necessary protection of seeds for a strong, healthy start. However, it is “essential” to manage them properly to minimize the risk of pesticide exposure to non-target organisms.
| Rural Advocate News | Wednesday August 5, 2020 |
Washington Insider: Another Look at Negative Rates Bloomberg is reporting this week that “a basic truism of finance may be turned upside down.” The report argues that interest rates -- which normally reward savers and charge borrowers -- have been set below zero by central banks in a handful of big countries. “That means savings are losing value and borrowers can be paid to take out a loan.” Considered one of the boldest monetary experiments of the 21st century, negative interest rates were adopted in Europe and Japan after policy makers realized that they needed extreme measures because their economies were still struggling years after the 2008 financial crisis. When the pandemic lockdowns halted commerce for months in 2020, central bankers looked for ways to cushion the blow. That rekindled a furious debate about whether rates in the red do more harm than good. When the pandemic hit the U.S., the Federal Reserve quickly slashed its key interest rate back to near zero, where it had been for almost a decade after the financial crisis. President Donald Trump renewed his heckling of the Fed via Twitter, complaining that its reluctance to go negative put the U.S. at a disadvantage. Chair Jerome Powell repeatedly dismissed the idea, saying the Fed was worried that the policy could roil U.S. money markets and preferred to use other tools. What's more, he said, research on the effectiveness of negative rates was “quite mixed.” Still, an undercurrent of worry led a market gauge reflecting traders' expectations of future Fed policy to fall briefly below zero in May 2020, with some investors betting the Fed would have to take the plunge within a year. When the outbreak took hold, central banks that already had negative rates declined to lower them further, instead ramping up bond purchases and lending programs as the Fed has also done. The European Central Bank had cut its rate as recently as September 2019, charging banks 0.5% to hold their cash. But over the six years since ECB rates went negative, the policy has provoked increasing outcry that it has crippled banks and robbed savers. In Germany — a nation with a strong culture of socking money away — tabloid newspaper Bild railed against the central bank, casting former ECB President Mario Draghi as a savings-sucking vampire it dubbed “Count Draghila.” The idea behind negative rates is simple, Bloomberg says. They drive borrowing costs lower and punish lenders that play it safe by hoarding cash. But economists frequently argue about whether they also have perverse effects that outweigh the textbook economic benefits. Chief among them is the impact on bank profits. Since many banks are reluctant to start charging for deposits, the spread between the rate they pay for funds and what they can earn lending money can be squeezed. For example, over time, European banks began to levy fees. Critics fret that the slide in borrowing costs will eventually hit a “reversal rate,” where the policy backfires as banks become less willing to lend. To offset that possibility, the ECB introduced a series of targeted measures to lift bank profits, including a “tiering” system that exempted a portion of the money parked at the ECB from charges. There's also spillover in financial markets: Because central banks provide a benchmark for all borrowing costs across an economy, negative rates spread to a range of fixed-income securities, with government bonds of countries such as Germany and the UK trading at negative yields. That means investors lose money if they hold the debt to maturity. Bloomberg concedes that central banks that use negative rates say they've lowered borrowing costs and fueled more lending. ECB research has shown that the downside has been manageable. Even central bankers worried about the potential harm say the scale of the crisis triggered by the pandemic and the limited number of tools available to fight it mean they can't rule anything out. Fans include Kenneth Rogoff, an economics professor at Harvard, who argued in an article in May 2020 that objections are “either fuzzy-headed or easily addressed” and that only “effective deep negative interest rates can do the job” of reviving economies. Yet there are worries that negative rates will prove politically toxic, tainting the public view of central banks and threatening their hard-won independence. To many critics, the policy had outlived its usefulness even before the pandemic and could now prove harder to escape. In 2019, Sweden, which began dipping below zero in 2009, became the first country to reverse course in a bid to ease the pain on lenders and investment funds. The Bank for International Settlements, a study group of central banks, warned in a 2019 briefing that there's “something vaguely troubling when the unthinkable becomes routine.” The approach is still highly controversial, Bloomberg emphasizes. It highlights the extent to which global central bankers joined Powell's pushback on negative rates. This chorus of bankers has criticized negative rates and some central bankers say they may be doing more harm than good. Nevertheless, Janet Yellen, the former U.S. Federal Reserve chair, said in 2015 that a change in circumstances could put negative rates “on the table” in the U.S. So, we will see. Fiscal policy has become increasingly challenging as the pandemic has worsened. Clearly, this management tool is receiving greater attention than it did only months ago, and should be watched closely as the argument intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday August 5, 2020 |
USTR Nominee Moves Closer to Being in Place The Senate Finance Committee approved the nomination of Michael Nemelka to be a deputy U.S. Trade Representative on a 24-to-4 vote Monday. Nemelka was nominated to be deputy USTR for Africa, China and the Western Hemisphere and for investment, services, textiles, labor and environment. Nemelka has been a special advisor to USTR Robert Lighthizer for the past five months. He is expected to easily win confirmation in the full Senate. Lawmakers focused on issues relative to the U.S.-Mexico-Canada Agreement (USMCA) during Nemelka's confirmation hearing as the agreement would fall under his purview.
| Rural Advocate News | Wednesday August 5, 2020 |
CFAP Payments Still Shy of $7 Billion With the Coronavirus Food Assistance Program (CFAP) signup to run through August 28, payments at the national level moved up to $6.82 billion as of August 3 with 499,156 applications approved for the program. One week ago, payouts totaled $6.55 billion. Livestock payments still account for the largest share at $3.44 billion, with $1.79 billion for non-specialty crops, $1.31 billion for dairy and $269.6 million for specialty crops. Payments for cattle still lead all commodities at $2.98 billion, followed by the $1.31 billion for milk and $1.22 billion for corn. Those are the only commodities where payouts have topped $1 billion, with the next largest payments for hogs at $430.2 million, soybeans at $344.5 million, and upland cotton at $172.3 million. Payments for the remainder of commodities covered under the program are no more than $56 million. The top six states remain Iowa ($697.4 million), Nebraska ($499.2 million), Minnesota ($435.2 million), Wisconsin ($389.3 million), Texas ($480.5 million), and California ($365.2 million). The program was originally expected to pay out some $16 billion to producers with an initial payment level at 80% of the estimated total payment. It is still not clear why the payouts have lagged the expected total since the program applications started coming in May 26. Farm Service Agency (FSA) Administrator Richard Fordyce told the Red River Farm Network that there could be a few reasons why signup is not higher, including the initial payments based on 80% of the estimated total payment. He also cited acreage reporting deadlines faced by farmers for their participation in farm programs as another potential factor. “There's also a lot of acreage reporting taking place right now and once this has finished up, we anticipate the CFAP applications to ramp up a little bit,” he noted. He also observed that the agency is still mulling adding additional commodities to the program. As for the 20% additional payment, Fordyce said, “If it looks like we've got some space and we'll be able to issue that additional 20% of the eligible payment in CFAP, then we'll make that decision at a later time.”
| Rural Advocate News | Wednesday August 5, 2020 |
Wednesday Watch List Markets At 7:15 a.m. CDT, ADP has a report on U.S. private sector job growth, which offers a hint for Friday's U.S. unemployment report. The U.S. Census Bureau reports on the U.S. trade deficit for June and provides USDA with monthly export data to be released later Wednesday morning. At 9:30 a.m., the U.S. Energy Department reports on weekly energy inventories, including ethanol. Weather Light to moderate rain is in store for the western Midwest Wednesday, and moderate to locally heavy rain will move through the south-central Plains. Other primary crop areas will be dry. Temperatures will be seasonal to below normal north and central and very warm to hot south, with extreme heat in much of Texas.
| Rural Advocate News | Tuesday August 4, 2020 |
COVID-19 Disruptions in the U.S. Meat Supply Chain The Kansas City Federal Reserve Bank says COVID-19 has created substantial challenges for all segments of the meat supply chain, but especially for producers and consumers. Beginning in April 2020, outbreaks of COVID-19 at meatpacking plants led to significant disruptions and created issues of oversupply and low prices for livestock producers. The spread of COVID-19 among employees led to closures and slowdowns at many meatpacking plants. Closures were especially prominent in beef and pork industries. The agricultural economy had been in a prolonged downturn before the pandemic, intensifying concerns of how COVID-19 and disruptions in the meat production could affect farm finances. The KC Fed says greater financial difficulties for livestock producers could add to stress in agricultural lending portfolios that already had increased before the pandemic. Before the COVID-19 pandemic, agricultural lenders in the bank district were already more pessimistic about the livestock sector's credit conditions. Almost 20 percent of agricultural lenders expect lower loan repayment rates on hog and dairy operations. ************************************************************************************ Dredging Project Readies Mississippi River for Efficient Transportation Soybean Checkoff-funded research, planning, analysis and design led by the United Soybean Board, has informed the launch of a dredging project to provide upgrades to the lower Mississippi River. The Army Corps of Engineers announced it will be funding and proceeding with deepening the Mississippi River from 45 to 50 feet between Baton Rouge, Louisiana, and the Gulf of Mexico. The Louisiana Department of Transportation and Development will also provide funding. The river is a major channel for U.S. soybean exports. The particular 256-mile stretch of the Mississippi River accounts for 60 percent of U.S. soy exports, and 59 percent of corn exports from that region arrive via the inland waterway system. Once complete, the new depth will unlock long-term benefits for soybeans and other U.S. agricultural exports. USB director Meagan Kaiser of Missouri says, “More efficient shipping builds value in the supply chain and expands opportunities for our soybeans to reach our customers around the world.” ************************************************************************************ House Ag Appropriations Chair May have Misused Campaign Funds A report by the Office of Congressional Ethics says Representative Sanford Bishop, a Georgia Democrat, may have misused campaign funds. Bishop is Chairman of the House Agriculture Appropriations Committee, and has served as the Representative for Georgia’s 2nd congressional district, encompassing Southwest Georgia, since 1993. The ethics report released last week says Bishop's campaign committee, Sanford Bishop for Congress, reported campaign disbursements that may not be legitimate and verifiable campaign expenditures. The report recommends further review, because “there is substantial reason to believe” Bishop converted campaign funds for personal use. The report includes evidence of thousands of dollars invoiced to Bishop from a Georgia golf course, along with credit card statements, including travel and golf-related charges. Bishop also serves on the Financial Services and General Government Subcommittee and is Vice Chair on the Military Construction, Veterans Affairs, and Related Agencies Subcommittee. In a statement, Bishop’s office says he “has fully cooperated” with the review and proactively reimbursed many of the charges identified as incorrect. ************************************************************************************ AFPM Facebook Ads Say RFS Based on Outdated Projections A Facebook advertisement from the American Fuel and Petrochemical Manufacturers claims the Renewable Fuel Standard is based on outdated projections. The ad directs Facebook members to an AFPM webpage critical of the RFS. The webpage is part of an effort to defend small refinery exemptions. The Facebook ad follows a news release from last week on the topic. AFPM states, “The limiting factor for ethanol consumption is, and has always been, the blend wall — a term signifying the limit to how much ethanol the fuel supply can actually handle, based on fuel and vehicle infrastructure and consumer demand.” The organization claims, “Denying relief to small refineries and making the RFS mandate bigger through volume reallocation will not change the reality of the blend wall, grow the capacity of the fuel supply or inspire more consumers to buy E15 and flex fuels.” Doing so, the organization says, will lead to higher compliance costs and more imports of foreign biodiesel. ************************************************************************************ USDA Announces Water and Wastewater Funding The Department of Agriculture Monday announced $462 million in funding to modernize drinking water and wastewater infrastructure across rural America. USDA Deputy Under Secretary for Rural Development Bette Brand says the upgrades “will improve public health and drive economic development.” USDA is funding 161 projects through the Water and Waste Disposal Loan and Grant Program. The program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and stormwater drainage to households and businesses in rural areas. The funding includes projects in rural communities in more than 40 U.S. states and will benefit 467,000 residents. Projects include constructing reservoirs, upgrading outdated water systems, and creating and improving sanitary sewer systems. USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure, business development, housing, community facilities and high-speed internet access in rural areas. ************************************************************************************ Onions Recalled Because of Salmonella Link Onion producer Thomson International Inc is recalling all of its onions from all 50 states because of its link to a Salmonella Newport outbreak. The outbreak has sickened more than 500 people in the United States and Canada, and the recall follows a similar recall in Canada. Food Safety News reports the first illness began on July 12, but health officials expect more to be identified because of the lag time between illness onset and the confirmation required for the Centers for Disease Control and Prevention to add a patient to its tally. Initially, it was thought that only red onions were implicated in the Salmonella Newport outbreak, but because of cross-contamination issues, all onions, including yellow, white and sweet are being recalled in both countries. Many of the onions are packaged for foodservice use and have been used in multi-ingredient foods so it is difficult for consumers to know whether the onions in such foods are part of the recall.
| Rural Advocate News | Tuesday August 4, 2020 |
Washington Insider: Growing Pressure on the Dollar Bloomberg is warning this week that the dollar is “flashing a warning sign” to U.S. policy makers pushing them to “get a grip on the virus.” After hitting an all-time high in March, the dollar lost 10% of its value, with declines accelerating in recent weeks as infections spread seemingly unchecked across the nation. Early on in the pandemic, the dollar soared after investors sought safety in U.S. assets like Treasuries while the virus stormed through Europe. But with cases now exploding, “the ineffectual American response has become a millstone for the currency, spurring concern about lasting damage to the U.S. economy that could keep interest rates and growth low for years.” “What people are most desperately waiting for is good news on virus control,” said Stephen Jen, chief executive at Eurizon SLJ Capital Ltd. “The currency bet is mainly a bet on relative control of the virus, not reflecting the fundamental strength of the economies in question.” The U.S. government's handling of the pandemic — which contrasts with the euro area's progress in containing infections — is now a key driver of the greenback. The dollar's losses have often deepened during the U.S. trading day, suggesting investors were selling after the latest virus figures were released. Speculators are now the most short since November 2017, after betting on strength for almost all of last year. Bloomberg said its Dollar Spot Index rose 0.5% Monday after sliding more than 3% in July, the worst monthly performance since January 2018. Still, prior to the dollar's slump to a two-year low in July, Stephen Jen was bullish. Jen predicted in June that the currency would bounce back as the U.S. economy rebounded. Jen is a pioneer of the so-called dollar smile theory, which posits that the dollar will gain as a result of either U.S. growth exceeding that of other nations or during risk aversion. Instead, the dollar has languished as rising infections simultaneously put the kibosh on a boost for growth and sapped appetite for the currency as a haven. “The key assumption I was making, which turned out not to be correct, was that the U.S. would sort itself out after a difficult period,” Jen said. The euro area has only outperformed the U.S. in eight years since 1992, according to IMF data, but 2020 is on that track, as well. American gross domestic product suffered its deepest quarterly contraction since at least the 1940s in the three months through June. While Europe's economy was also eviscerated, with output shrinking to levels not seen since 2005, recent data show signs of a rebound as lockdowns ease across the region. Final prints for manufacturing purchasing managers' indexes for the euro-area, Germany and France came above flash estimates on Monday, while readings for Spain and Italy beat expectations. Meanwhile, European governments have — so far — kept a lid on new infections. That hasn't been lost on the Federal Reserve, with Chairman Jerome Powell saying after the central bank's latest meeting that the path forward for the U.S. economy will largely depend on America's success in “keeping the virus in check.” While policy makers have not explicitly linked rates to controlling COVID-19, the broader effort to curb the pandemic is influencing the outlook for both monetary policy and economic growth. “I'm much more confident about the 'left' side of the smile: that is, the dollar performing in a risk-off environment, than I am on the other side, which is classically driven by a U.S. economic out-performance,” said Ross Hutchison, investment director for Standard Life Investments. But others aren't convinced that even this side of the framework holds up. The dollar smile has flattened and turned into a painful “grin,” according to Calvin Tse, a foreign-exchange strategist at Citigroup Inc., with the flood of liquidity unleashed by the Fed diminishing the likelihood of a sudden rush to the dollar in a risk-off scenario. While Tse doesn't rule out gains for the dollar, any haven rally is likely to be shallower than in previous years thanks to these measures, while the possible extent of depreciation remains the same. For some, then, it's time to better reflect the influence of the virus in their strategies. Paresh Upadhyaya, money manager at Amundi Pioneer Asset Management, which has $78 billion under management, says accounting for the virus has taken on a bigger role in shaping his view of the dollar and the economy. To keep tabs on the virus's impact Upadhyaya watches number of items, including activity at airport security checkpoints, restaurant reservations, small business openings, small business revenue and employment. He also tracks traditional data on manufacturing and services, and uses mobility data produced by Apple Inc. and Google parent Alphabet Inc. to gauge states reopening. “As cases in the U.S. have picked up, that's a flag for the dollar,” Upadhyaya said. “So, we use currency values to gauge which region is having a better handle over the virus.” So, we will see. A weaker dollar is seen by many exporters as a powerful stimulus to sales, so the current trend will be welcome in some quarters. Still, efforts to fight the virus while managing a volatile economy are a growing challenge with longer-term economic implications — fights producers should watch closely as they persist, Washington Insider believes.
| Rural Advocate News | Tuesday August 4, 2020 |
US-UK Trade Talks Continue This Week U.S. Trade Representative Robert Lighthizer will meet this week with UK International Trade Secretary Liz Truss who the Financial Times said would relate her frustration at American officials over “punitive” tariffs levied on British goods. Truss' visit to Washington underlines the UK's desire to strike a trade deal with America quickly, despite U.S. officials saying final talks on a new trade accord would not likely be completed by the end of the year. Truss told the Financial Times that, while U.S. officials “talk a good game on free trade and low tariffs, the reality is that many of our great British products are being kept unfairly out of their market.” She is expected to raise the retaliatory tariffs as part of the Airbus and Boeing dispute in the aviation sector, as well as the prospect of further tariffs being levied on British goods.
| Rural Advocate News | Tuesday August 4, 2020 |
Dairy Industry Pushing on Trade A bipartisan group of 61 senators want U.S. Trade Representative Robert Lighthizer and USDA Secretary Sonny Perdue to make it a “core” trade policy objective to strike trade deals that allow U.S. dairy producers to sell their products using common names that originated in Europe. “Our competitors continue to employ trade negotiations around the world to prohibit American-made products from using common food [and drink] names … such as bologna, parmesan, chateau and feta, which have been in use for decades,” the senators said in a letter. Dairy groups, including the National Milk Producers Federation and the U.S. Dairy Export Council, want future trade deals to include stronger terms than were included in the U.S.-Mexico-Canada Agreement, (USMCA) which went into force July 1.
| Rural Advocate News | Tuesday August 4, 2020 |
Tuesday Watch List Markets The only official report on Tuesday's docket is U.S. factory orders at 9 a.m. CDT, but the latest weather forecasts will be closely watched with parts of the Midwest needing rain in August. As usual, Monday's Crop Progress report may play a part in Tuesday's trading as well as any trade news that emerges. Weather Tuesday will be dry and mild over most crop areas. Rainfall will be confined to light showers in the northwestern Plains and the far eastern Midwest. This combination favors row crop filling. A few delays may occur in spring wheat harvest due to showers
| Rural Advocate News | Monday August 3, 2020 |
Chinese Corn Purchases Sets Records as Tensions Grow Chinese buyers made a record purchase of U.S. corn last week. Reuters says that extended a recent flurry of U.S. purchases as tensions continue to grow between the two largest economies in the world. The USDA says China bought 1.937 million tons of corn from private exporters that will be delivered in the 2020-2021 marketing year. That purchase is worth around $325 million and passed up the previous record of 1.76 million tons reported only two weeks ago. In another report, the USDA says soybean sales to China rose to 1.925 million tons for the week ending July 23, which was the biggest weekly total since November of 2016. China’s purchases of American farm goods totals $6 billion through May, while the Phase One Trade Agreement calls for a total of $36.5 billion in purchases this year. While the $6 billion total is 9.1 percent higher than the same period last year, it’s also 31 percent lower than the same time in 2017. Rising tensions had already slowed soybean purchases last week. U.S. Soybean Export Council CEO Jim Sutter says, “Chinese buyers are worried about a possible disruption in the implementation of the Phase One agreement, which is certainly not good for future purchases.” ********************************************************************************************** Perdue Says EU “Green Deal” Could Undermine Trade Talks with the U.S. USDA Secretary Sonny Perdue says the European Union’s recently-published EU “Green Deal” strategies could “undermine trade and affect the viability of EU farmers.” Perdue’s claim was immediately refuted by his EU counterpart. Euractive (Yuhr-ACTIVE) Dot Com says Perdue spoke during a webinar on the transatlantic perspective on food security in a post-COVID world last week. Perdue commended the EU for focusing on sustainability and expressed a strong desire to work with the European Union. However, he criticized the new food policy, which he says, “seems to have forgotten the ‘farm’ in ‘Farm to Fork.’” The EU says the new Farm to Fork policy is intended to improve the sustainability of agriculture within the bloc and shorten the distance between the farm and the end-user. Together with the new biodiversity plan, those two policies make up the heart of the EU Green Deal. Perdue also says EU farmers were being left without the tools they need to do their jobs, warning that it could make farmers there uncompetitive. If that happens, it could then lead to EU protectionism, something that could “do some real damage to the global trade environment.” However, the EU Ag Commissioner says the emphasis on reinforcing shorter supply chains doesn’t imply any new trade barriers, adding that the bloc “isn’t against and needs international trade.” ********************************************************************************************** Cattle Producers Set Policy Priorities for the Future of the NCBA A large number of cattle producers worked to identify a policy that would help to resolve concerns about live cattle marketing issues and help lead the industry to more robust price discovery. The National Cattlemen’s Beef Association’s Live Cattle Marketing Committee considered many proposals aimed at encouraging greater volumes of cash cattle trade. After sometimes intense debate, the committee and the NCBA Board of Directors unanimously passed a policy that supports voluntary efforts to improve the fed cattle trade over the next three months. However, it leaves the market open to the potential for future mandates if robust regional cash trade numbers are not reached by the industry. NCBA President Marty Smith says the work of the Live Cattle Marketing Committee caps off months of efforts to find industry and market-driven solutions to increase price discovery without government mandates. “The policy we passed today is the result of every state cattlemen’s association coming together to work through their differences and find solutions that meet the needs of their members,” Smith says, “all of whom agree that the industry needs more price discovery. The policy provides all players in the industry with the opportunity to achieve that goal without seeking government mandates.” ********************************************************************************************** Agricultural Fairs Rescue Act Introduced in Congress The Agricultural Fairs Rescue Act was introduced in Congress late last week to help preserve agricultural fairs across the country. The legislation from Democrat Jimmy Panetta of California and Republican Billy Long of Missouri is also designed to help fairs recover from large financial losses they’ve suffered because of COVID-19. A large number of fairs across the country didn’t take place this summer because of safety concerns. The bill would provide $500 million in grant funding for agricultural fairs through their state departments of agriculture to help keep them functioning well into the future. “County and local fairs are very important to agriculture and our communities all across our country,” Panetta says. “Fairs provide our producers with the opportunity to market their crops and livestock and foster the next generation of farmers.” He points out that fairs are also an “economic engine” and a gathering place to highlight and celebrate our communities. A Drover’s report says agricultural and community fairs have been an important part of rural communities for over 250 years. State and local fairs also provide farmers and ranchers with the opportunity to educate the public about local agriculture. “Like many institutions, fairs have been hit by COVID-19,” Panetta says, “and we must assist if we are going to preserve these fairs for the future.” ********************************************************************************************** NCGA Talks Trade and Supply Chains During Virtual Town Hall National Corn Growers Association President Kevin Ross joined other national agricultural leaders for an AgTalks virtual town hall last week. Participants talked about the future of agriculture, with a focus on trade, supply chains, and competition on a global scale. The town hall allowed panelists to provide updates from their industries and answer questions. Ross talked about the many challenges facing corn producers in 2020 and shared the NCGA’s recovery plans to help growers navigate the immediate challenges in the short term and to expand market access in the long term. “We’re thankful to have USMCA in force and Phase One trade deals with both China and Japan,” Ross says. “But we have lost ground to our competitors, and it’s time to pivot to more aggressive expansion in our trade. NCGA will continue to push for trade agreements in Southeast Asia and many other regions that have strong demand potential.” The AgTalks town hall series will help farmers learn and share their views with commodity associations at a time when most of the major in-person state agricultural events have been canceled or postponed because of COVID-19. Last week’s event focused on Iowa, with future events scheduled to focus on Minnesota, Michigan, Pennsylvania, and Wisconsin. ********************************************************************************************** Ethanol Ready to Capture More Carbon Growth Energy CEO Emily Skor says ethanol plants are ready to capture more carbon. She submitted comments on the Internal Revenue Service’s proposed regulations under section 45Q. It’s a performance-based tax credit for carbon capture projects. In her comments, Skor asks the agency to offer credit for carbon dioxide captured for food and beverage purposes, which would promote investment in new carbon capture capabilities and ensure that the food and beverage industry is not forced to tap alternative sources of carbon dioxide. “The ethanol industry has more than 50 projects that on average capture 99,000 to 153,000 tons of carbon dioxide annually,” Skor says. “These facilities both capture qualified carbon oxides or are in the process of financing projects to capture and sequester carbon oxides.” She adds that more projects are on the way and 45Q can help accelerate that process. Without the tax credit, food and beverage producers may have to rely on non-renewable sources of carbon dioxide.
| Rural Advocate News | Monday August 3, 2020 |
Washington Insider: Trade Policy Issues Intensify As trade has become more complex, policy issues have also become more complicated, Bloomberg says this week. For example, much of the modern trade in goods is actually in the form of components, a development widely attributed to an economic consultant, Keith Oliver, Bloomberg says. Oliver is concerned that current “drastic efforts to realign chains will ultimately hurt consumers.” Oliver recalls his 1978 work for Booz Allen Hamilton for a unit of Philips NV, the Dutch electronics giant “trying to compete globally back when Japan was the rising economic power in Asia that worried western companies.” Oliver, then in his mid-30s, pitched a solution initially billed as “integrated inventory management” to unify a fragmented organization — using a new theory of how to run a multinational company. Bloomberg says supply chain management has gone from back-office obscurity to political scapegoat “because they expose economies to shocks beyond their borders.” Oliver thinks there is “plenty of room for improvement, but he bristles at many governments' plans to nationalize his brainchild.” “This strikes me as a short-term victory for the political at the expense of the overall economic, intellectual and global social progress,” says Oliver, now retired in Vancouver after more than 40 years with Booz Allen. “Yeah, it'll make it easier because the supply chain won't be as long. However, the costs will go up, so, prices will go up and we'll hammer the consumer.” Such trade-offs are the subject of much economic debate of late and rare was the second-quarter earnings call where the chief executive officer of a major international producer didn't address them. For example, Bloomberg notes that Tom Linebarger, chairman and CEO of engine maker Cummins Inc., said “our supply-chain organization faced some of the most significant demand fluctuations in the company's history.” David Calhoun, Boeing Co.'s president and CEO, said the plane maker is “doing everything we can to support our global suppliers and their stability remains a key watch item for us in the aerospace — as our aerospace industry weathers these unprecedented challenges.” Part of that effort means assessing risks and “continuing payments to our more than 12,000 suppliers supporting about 1.5 million jobs,” he said. “The shortfalls recently demonstrated in supply chains are primarily management failures,” he says. “We do actually have the philosophies, concepts, tools and technologies to manage global extended-enterprise supply chains — the failure is in their rigorous application.” It wasn't until 1982 that Oliver's concept appeared publicly. U.S. and European companies were woefully behind their Japanese competitors on things like inventory control and built large, costly stockpiles as buffers against demand uncertainties. Over the following two decades, Oliver says a few broad changes happened that tested the durability of supply chains. The first was a rise in consumer preferences for customization — an iPhone in red, gold, black, white or silver; variety is an enemy because it makes demand hard to forecast. The second variable was globalization and companies stretching out across the world to reduce costs — ushering an era of low global inflation and low interest rates. “Remember that the whole reason to go out there was in fact the reduction of cost,” Oliver says. “In the majority of instances, it actually produced a very significant cost reduction.” There was a societal toll, though, according to officials like U.S. Trade Representative Robert Lighthizer, the architect of President Donald Trump's tariff offensive against China. In an essay in a recent edition of Foreign Affairs magazine, he derided those who've been “obsessed with efficiency” and called supply-chain relocation “a cure-all peddled by management consulting firms.” Around 2000, Oliver said, he and others realized the three main types of risk — two of which are currently wreaking havoc — needed more attention: internal risks like workers going on strike; external risk such as a trade war that boosts tariffs; and acts of nature like a pandemic that paralyzes the global economy. “Many companies caught up in the outsourcing frenzy failed to appreciate the risks,” Lighthizer wrote, a statement with which Oliver might partially agree. Another shortcoming in Oliver's view was a belief among top executives that technology, automation and artificial intelligence would smooth disruptions on their own. “Turning everything over to a black box is a very dangerous thing to happen in a supply chain,” said Timothy Laseter, who worked with Oliver at Booz Allen. “Progress will continue, but will it ever be as theoretically pure as we want it to be? Probably not.” Oliver remains optimistic that the recent shocks are surmountable and might even be a catalyst for making supply chains a bigger part of a company's strategic plan. “The progress has been huge,” he said. “I am frustrated that the potential has not been realized.” So, we will see. In recent years the administration has tended to rely on government interventions and less on economic competition to build sales — and, critics of current administration policy often argue that it has narrowed, rather than expanded, overseas markets. There is growing concern that the current reliance on tariffs will be more difficult to manage than anticipated. This is an important debate that producers should watch carefully as it intensifies, Washington Insider believes.
| Rural Advocate News | Monday August 3, 2020 |
WTO Fails to Agree on Temporary Leader While the WTO is moving ahead to find a new Director General, the group has been unable to agree on a temporary leader for the world trade body. While the exit of current WTO Chief Roberto Azevedo would normally prompt the trade body to pick temporary leader from one of the four Deputy Directors General. But they did not take such a step. The General Council agreed to extend the terms of the four sitting Deputy Directors-General — Yonov Fred Agah, Karl Brauner, Xiaozhun Yi and Alan Wolff – until a new leader is chosen. Labeled “very much a housekeeping matter to facilitate the continued running of the organization,” General Council Chair David Walker of New Zealand said the lack of a consensus on who should temporarily lead the WTO prompted the extension of the terms of all four of the Deputy Directors General. The four will “consult closely with the members,” the WTO said. Walker stressed that during this interim phase, no structural changes will be made to the WTO Secretariat.
| Rural Advocate News | Monday August 3, 2020 |
Push Continues on Removing US Sanctions on EU Food, Ag Goods A bipartisan coalition of House members have written to U.S. Trade Representative Robert Lighthizer to urge removal of retaliatory tariffs on European Union (EU) food and ag products imported into the country. The tariffs are linked to the long-running dispute between the U.S. and EU over subsidies given to Airbus in the form of low interest rates. The World Trade Organization ruled the situation with Airbus ran counter to world trade rules. While the EU insists they have met the terms of the WTO ruling, the U.S. is able to hit EU goods with retaliatory tariffs. The U.S. has threatened additional EU goods with tariffs, but the August deadline is approaching and it is not clear the U.S. will hold off expanding the tariffs too long. And while lawmakers praise Lighthizer for his get-tough stance on the EU/Airbus issue, they add, “We hope you will update the United States' approach in this case to eliminate unintended hardships for Americans trying to make ends meet and small businesses seeking to recover.”
| Rural Advocate News | Monday August 3, 2020 |
Monday Watch List Markets Traders will still be checking the latest weather forecasts on the first Monday in August and any trade news that develops. A report on U.S. manufacturing is due out at 8 a.m. CDT, followed by weekly grain export inspections at 10 a.m. A monthly Fats and Oils report from NASS is out at 2 p.m. CDT, followed by USDA's Crop Progress report at 3 p.m. Weather Monday will be dry with seasonal to below-normal temperatures in most crop areas. Rain will be confined to light activity in the eastern Midwest and to tropical precipitation in the Southeast.
| Rural Advocate News | Friday July 31, 2020 |
NASDA: Senate Coronavirus Aid Falls Short for Agriculture Negotiations to finalize the next coronavirus relief package in Congress are far from the finish line, and so is aid for agriculture, according to the National Association of State Departments of Agriculture. The Senate Republican proposal includes a second round of $1,200 stimulus payments for individuals, extends additional unemployment payments by $200 a week through September, and includes substantial funding for schools and COVID-19 testing, and $20 billion for agriculture. The discretionary funding would support agricultural producers, growers and processors. Not included in the Republican plan is additional funding for food and nutrition programs or dedicated funding for state departments of agriculture to respond to COVID-19 impacts. NASDA CEO Barb Glenn says, “This relief package falls short of meeting the needs of the food and agriculture community.” Further, Debbie Stabenow, a Michigan Democrat and ranking member of the Senate Agriculture Committee, says, “Struggling Americans deserve better.” Stabenow says the Republican plan is “a non-starter” without nutrition assistance included. ************************************************************************************ Lawsuit Challenges NEPA Rewrite A coalition of environmental groups is challenging the Trump administration rewrite of the National Environmental Policy Act, or NEPA. The Environmental Defense Fund, along with other organizations, call the rewrite an “attack” on Americans. Leading the legal challenge, an attorney at the environmental group Earth Justice, says, “They want to make it easier to silence people’s voices and give polluters a free pass to bulldoze through our neighborhoods. That’s why we’re taking them to court.” NEPA requires federal agencies to assess the environmental effects of their proposed actions before making decisions. The Public Lands Council says, however, the changes make the process more efficient. The updates establish presumptive time limits of two years for environmental impact statements and one year for environmental assessments. Ranchers who hold federal grazing permits are subject to NEPA reviews for many reasons, including renewal of a term grazing permit, construction of range improvements, or to become eligible for participation in Department of Agriculture conservation programs. ************************************************************************************ Senator Booker: Current Food System Fundamentally Broke A former 2020 presidential candidate says the nation’s food system is “fundamentally broken.” Addressing the National Food Policy Conference this week, Senator Cory Booker, a New Jersey Democrat, says, “After this crisis, we simply cannot go back to business as usual.” Booker claims the food system is broken for supply chain workers, farmers, rural communities and from a public health perspective. Booker places blame on multinational corporations and industry consolidation. The lawmaker cited numerous bills he supports to reform the beef supply chain, including the Farm System Reform Act that would allow more bargaining power for ranchers. Booker also cited the Agribusiness Merger Moratorium act that would halt consolidation within the food system, along with the Climate Stewardship Act and the Local FARM Act. Booker, a self-described vegan, says, "We must create a better future where we phase out big factory farms and instead put our faith and support behind independent family farmers and robust local food systems.” ************************************************************************************ House Ag Welcomes Two New Committee Members The House Agriculture Committee Wednesday announced two new members, Chris Jacobs, a New York Republican, and Troy Balderson, an Ohio Republican. Jacobs won a special election in June and will serve the remainder of the term left by retired Congressman Chris Collins. Collins, a Republican, pled guilty to wire fraud and securities fraud last year, and resigned from his position. Jacobs previously served as a state Senator in New York and a county clerk. Balderson of Ohio was elected to the U.S. House in 2018, and takes the place James Comer, who will depart the Agriculture Committee. Balderson also serves on the House Science, Space and Technology Committee, and the Small Business Committee. In welcoming the pair to the committee, Texas Republican Representative and Ranking Member Mike Conaway stated, “Both understand the importance of supporting our farm families, and I look forward to working alongside Chris and Troy on behalf of rural America.” ************************************************************************************ Dicamba-Resistant Palmer Amaranth Discovered in Tennessee Researchers from the University of Tennessee report finding dicamba-resistant Palmer amaranth in the state. Results from greenhouse trials and in-field assessment report the level of dicamba resistance is relatively low, about 2.5 times. The level of infestation in any given field ranges from a small pocket where a mother plant went to seed in 2019 to an area covering several acres in a field. This would be comparable to the first documented glyphosate-resistant Palmer amaranth found in Tennessee back in 2006, where most were still getting relatively good Palmer amaranth control with glyphosate, while others were noticing escapes in their fields. Researchers say it’s not time to panic, however, say “it is time to reassess weed management.” Looking forward to 2021, the university says a pre-applied residual that is effective on Palmer amaranth is now a necessity. Moreover, timely applications of Liberty must be used shortly after a dicamba application to remove escapes from coverage. ************************************************************************************ American Lamb Board Partners with H-E-B The American Lamb Board has partnered with the nation's top consumer ranked grocery store, H-E-B, to promote the benefits of American Lamb through the H-E-B Health and Wellness program. The effort provides important visibility for American Lamb in Texas and sets the stage for potential future retail collaborations. With more than 350 locations throughout Texas, H-E-B is a major player in the grocery industry. The first step of the partnership was engaging and educating more than 70 H-E-B registered dietitians about the benefits of American Lamb to support their nutrition education efforts. In June, more than 1,000 H-E-B customers received an American Lamb recipe book sent directly to their homes. Then, in July, H-E-B stores began an in-store promotion of American Lamb! H-E-B dietitians are including American Lamb on their "Pick Lists," which feature selected products and a coupon offering $2 off assorted American Lamb cuts. This generated more than 7,600 coupon redemptions in just the first seven days of July. As of July 29, more than 14,300 coupons have been redeemed.
| Rural Advocate News | Friday July 31, 2020 |
Washington Insider: Fed Sees Future Peril for Workers The New York Times and others are reporting this week that the Federal Reserve left interest rates near zero on Wednesday as it predicted a long road ahead and that the recent spike in virus cases “saps momentum from the nascent economic recovery.” Chairman Powell noted that infections have surged since late June and the “pace of recovery looks like it has slowed.” He also noted that policymakers need more data before drawing firm conclusions about the scope of the pullback. Debit and credit card spending were slowing and as labor market indicators suggest that recent job gains might be weakening. More than 14 million people who held jobs in February are no longer employed. Powell warned that it will take time for workers in certain industries, like restaurants, hotels and travel, to find new jobs. “He added that the Fed was “not even thinking about thinking about thinking about raising rates.” The Times said that while the Fed took no major actions on Wednesday, Powell's comments underlined both the peril ahead for American workers and the reality that interest rates are likely to be very low for an extended period of time. Stock prices climbed following his remarks as investors took heart from the Fed's patient stance. Ahead of the Chairman's comments, the central bank reiterated that the Fed would keep low rates in place “until it is confident that the economy has weathered recent events.” The Fed's announcement came amid another round of tense negotiations in Congress over providing more support to workers and businesses. Debate revolves around whether to extend an extra $600 per week in unemployment benefits now set to expire this week. Powell said the support lawmakers have already provided has been critical for the economy. While he did not weigh in on how high unemployment insurance benefits should be set, he said it would be important to help the large number of workers who were likely to be displaced even if the economy reopened successfully. “Those people will need support,” he said, noting that government policy so far has “kept people in their homes, it's kept businesses in business.” Powell said both Congress and the central bank would need to do more in the months ahead. Since March, the Fed has put in place a series of measures to help cushion the economic fallout as businesses close or reduce capacity and as shoppers stay home from malls and movie theaters to control the spread of the coronavirus. The central bank has rolled out nine emergency lending programs, which are meant to keep credit flowing to businesses and state and local governments, and is purchasing government-backed bonds to keep markets functioning normally. Also, it has slashed interest rates to rock bottom to entice borrowing and spending. On Tuesday, officials announced that they would extend their emergency lending programs through the end of the year. Seven of the programs were initially set to expire around the end of September but could still be needed as coronavirus cases have continued to rise. That could take time, Powell said. The unemployment rate, while falling, remains historically high at 11.1%. Initial jobless claims ticked up last week after months of gradual improvement, stoking concerns that the economy might be backsliding. The job losses are hitting disadvantaged communities particularly hard. The Fed's own surveys have shown that poorer people were more likely to lose jobs and that those with less education often did not have the option to work from home. The jobless rate for Black workers has skyrocketed to more than 15% and the unemployment rate for Black men continued to tick up in June even as the rate for other racial and gender groups began to fall. While Fed officials' June economic projections suggested that they expected unemployment to fall below 10% by the end of the year, policymakers made it clear then that conditions were extremely uncertain. The central bank's policies do seem to be offering support, at least around the edges. House buying has ticked up, fueled by cheap mortgage rates and the U.S. homeownership rate is now at levels last seen before the 2008 financial crisis. Key credit markets have calmed down after a disorderly March and April, as has the market for U.S. government debt. Powell also said the Federal Open Market Committee's longer-run framework review, which could guide the central bank's strategies, would be completed in the near future. Some economists took that news to mean that more action is coming at the Fed's Sept. 15-16 meeting. “The July FOMC meeting was expected to be a placeholder event until more important decisions are made at the next meeting in September,” Michael Feroli, the chief U.S. economist at JP Morgan, said in a note. “The committee met those expectations.” So, we will see. Clearly, the economy continues to struggle and is likely to do so for some time. This will heavily Depend on the future intensity of virus outbreaks, as well as investment programs from the government which are now being debated fiercely. These are highly significant fights that producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Friday July 31, 2020 |
WTO To Appoint Arbitrator Over US Request For Duties On China Goods The WTO will appoint an arbitrator to rule on a U.S. request to hit $1.3 billion in China goods with retaliatory duties in a dispute over China's subsidies for wheat, corn and rice producers, a WTO official said on Wednesday. The U.S. maintains China has not complied with a 2019 WTO ruling against Chinese agricultural support programs in a case brought late in the Obama administration in 2016. China did not appeal the decision, and the U.S. agreed to give Beijing until the end of June 2020 to comply. China insists they have complied, but the U.S. said they do not think that is the case.
| Rural Advocate News | Friday July 31, 2020 |
China Purchases Of US Ag Goods Remains In Focus Both Reuters and Bloomberg are running items which focus on the pace needed for China to meet its purchase commitments of U.S. ag products under the Phase One agreement. Reuters reports data through May put the country well behind the pace needed and says that their recent purchase pace of U.S. corn and soybeans would have to be maintained in coming months in order to meet their commitments. Bloomberg reports that China has amassed purchases of U.S. cotton despite a global downturn in textile/clothing demand due to COVID-19. The Wall Street Journal today reports the rise in Chinese corn prices to five-year highs is expected to result in stepped-up imports of corn and other grains, with U.S. corn farmers standing to benefit. Trade data for June due August 5 will provide a clearer picture of the situation. But USDA announced in its Weekly Export Sales report that foreign buyers picked up 3.344 million metric tons of U.S. soybeans the week ended July 23, including 1.989 mmt to China. And USDA also announced via its daily export sales reporting system that private exporters sold 1.937 mmt of U.S. corn to China for 2020/21, the largest daily corn sale to China on record.
| Rural Advocate News | Friday July 31, 2020 |
Friday Watch List Markets The final day of July has a report on U.S. personal incomes and consumer spending at 7:30 a.m. CDT, along with the U.S. employment cost index. With soybeans getting closer to filling pods, the latest weather forecasts maintain high interest among traders as does any trade news. Weather Friday will be dry across northern and central crop areas. Rain will focus on the southern Midwest and portions of the Delta and Southeast with locally heavy amounts and some flood threat. Temperatures will be seasonally warm north and central, very warm south, and stressfully hot in the Far West and Northwest.
| Rural Advocate News | Thursday July 30, 2020 |
Farmers to Families Food Box Program Reaches 50 Million Boxes Delivered Agriculture Secretary Sonny Perdue announced Wednesday the Farmers to Families Food Box Program has distributed over 50 million food boxes. The Department of Agriculture program supports American farmers and families affected the COVID-19 pandemic by delivering food boxes to needy families. Perdue says the milestone is a “testament to everyone’s hard work” on the program. The program supplies food boxes of fresh fruits and vegetables, dairy products, meat products and a combination box of fresh produce, dairy or meat products. Distributors package the products into family-sized boxes, then transport them to food banks, community and faith-based organizations, and other non-profits serving Americans in need. The first round of purchases totaled $1.2 billion. The second round and current round aims to purchase up to $1.47 billion through August 31. The recently announced third round will use the remaining funds available to the program, up to $3 billion, and purchases will begin by September 1 and conclude at the end of October. ************************************************************************************ Biden Releases Rural America Plan Joe Biden’s Presidential Campaign released Biden’s plan for Rural America Wednesday. The plan says Biden will pursue a rural economic development strategy that “partners with rural communities to invest in their unique assets.” The plan’s goal is to give young people more options to “live, work, and raise the next generation in rural America.” The plan seeks to pursue a trade policy “that works for American farmers.” That includes standing up to China to “negotiate the strongest possible position.” Biden also plans to support beginning farmers by expanding the Obama Administration’s microloan program for new and beginning farmers. Biden also wants to partner with farmers to make American agriculture first in the world to achieve net-zero emissions, giving farmers new sources of income in the process. Biden’s plan also calls for promoting ethanol, including investing $400 billion in clean energy research. The plan also says Biden will “use every tool at his disposal,” including the federal fleet and the federal government’s purchasing power, to promote and advance renewable energy, ethanol, and other biofuels. ************************************************************************************ Purdue: Unsolicited Seeds Could Wreak Havoc on Agriculture Growing concerns around unsolicited seeds prompt at least 28 states to issue warnings not to plant the seeds. Indiana joined the list of states this week, warning of the potential damage to agriculture. Don Robison, seed administrator for the Office of Indiana State Chemist, says, "The last thing we want is to spread a weed, invasive species or disease, and that's a real risk if people plant these or throw them in the garbage." Robison says there is potential for serious harm to everything from backyard gardens to commodity and specialty crops. Utah officials confirmed at least one noxious weed in seeds sent to a resident in the state. Weed seeds, invasive species and disease pathogens can spread rapidly, costing millions of dollars annually for just a single plant or disease, and cause billions of dollars of impact overall each year. The seeds may be part of a "brushing" campaign in which online retailers send out unsolicited packages and use the fake sales to improve the seller's ratings in the marketplace. ************************************************************************************ Beef Board Issues New Long-Range Plan The Beef Industry Long Range Plan task force officially introduced its new five-year plan for 2021-2025 this week at the Cattle Industry Summer Business Meeting in Denver. Updated every five years, the Beef Industry Long Range Plan is designed to help the beef industry establish a common set of objectives and priorities. It communicates the industry's strategic direction and provides insight on how the industry can serve its stakeholders by growing beef demand. Task Force leader Kim Brackett says, “We feel we've established some important priorities and strategies, as well as benchmarks for success that will help keep our industry on track through 2025 and beyond." The plan seeks to grow global beef demand by promoting the benefits of beef, improve industry-wide profitability through expanding processing capacity, and increase research efforts on sustainability. The plan also seeks to make traceability a reality in the U.S. beef industry. The task force convened several times over the past year and considered all aspects of the industry when formulating the plan. ************************************************************************************ Ernst to EPA: Make E15 Available at Every Pump Iowa Republican Senator Joni Ernst is calling on the Environmental Protection Agency to make E15 available at every U.S. gas pump. Specifically, Ernst calls on EPA Administrator Andrew Wheeler to certify biofuel infrastructure for E15 and remove unnecessary labeling which will increase consumer access to E15. In a letter to Wheeler, Ernst writes, “You must act now to initiate a rulemaking process and follow through on this agreement to provide certainty to farmers,” citing COVID-19 pandemic losses. In May, Ernst led a bipartisan effort urging the Trump Administration to uphold the Renewable Fuel Standard and reject requests for the RFS to be waived. Ernst is currently pressing the White House to support the biofuels industry through coronavirus relief. The oil industry, expectedly, disagrees. The American Fuel and Petrochemical Manufacturers claim EPA could mandate a full 15 billion gallons with zero small refinery exemptions, and the fuel supply would still only be able to accommodate about 14.3 billion gallons of ethanol. ************************************************************************************ Legislation Would Incentivize Public Schools to Work With Farmers The Small Farm to School Act seeks to create a pilot program to incentivize public schools to work closely with local farmers. The bill was introduced this week by Representatives Antonio Delgado, a New York Democrat, and Jim Sensenbrenner, a Wisconsin Republican. The legislation would create an eight-state pilot program where local public schools would be reimbursed at a higher rate for sourcing school lunches from small farmers under the National School Lunch Program. Specifically, the bill would provide a five cent-per-lunch subsidy when a component of the meal is sourced from a small, local farm. The cost of the subsidy would be split evenly between the federal government and the participating state. The Small Farm to School Act authorizes $20 million annually for the pilot in eight states. Delgado, a member of the House Agriculture Committee, says the legislation "will help form new partnerships that both assist our small farmers and the health of our young people."
| Rural Advocate News | Thursday July 30, 2020 |
Washington Insider: Senate Sets up Battle Over Medicaid The Hill is reporting this week that the Senate didn't include a funding increase for Medicaid in its new COVID-19 response bill, ignoring pleas from both Democratic and Republican governors. This “tees up a contentious fight with the House over spending on the health care program for the poor,” The Hill said. Governors facing massive budget shortfalls caused by the economic downturn have warned they will have to cut Medicaid and other programs if they don't get more help from Congress--but those warnings did not sway Senate Republicans who have resisted what they say would be “bailouts” of state and local governments. “At the end of the day, it's got to be in there,” said Matt Salo, executive director of the National Association of Medicaid Directors. “We're in this perfect storm of hurt, he said. Since states have to balance their budgets, the only way out of this is aggressive, concerted, federal, congressional action.” Medicaid -- which is jointly paid for by states and the federal government -- covers about 70 million people. However, “enrollment is expected to increase as people lose their jobs and become newly eligible for the program.” States are also facing increased costs from paying for COVID-19 treatment and services for beneficiaries. At the same time, tax revenue is falling, leaving massive budget holes that states are required to fill. During recessions, governors and state legislatures tend to cut costly programs like Medicaid, which consumes about 20 percent of state budgets. To avoid cuts, groups like the National Association of Medical Directors and the National Governors Association want Congress to temporarily increase the share of Medicaid costs paid by the federal government, to help cover increased enrollment costs and to free up state money for other areas like education. A COVID-19 response bill recently passed by the House would increase the share of Medicaid costs paid by the federal government but it has not been considered by the Senate. Now House and Senate negotiators will have to hammer out a compromise in a final package that Congress hopes to pass in the coming weeks. “There is increasing recognition that something needs to get done,” Salo said. “I feel confident that we will get there,” he added. A spokesperson for House Speaker Nancy Pelosi, D-Calif., said: “This is obviously a critical program, which is why it was in the HEROES Act.” However, Senate Republicans and the administration have a complicated history with the Medicaid program and have spent the last few years trying to reduce spending and decrease enrollment among childless adults. One disagreement between Republicans and Democrats is over a requirement passed in a previous COVID-19 response bill that prohibits states receiving increased Medicaid funding from cutting benefits or restricting eligibility. Republicans think the requirement is too restrictive to states and want to change it in the next response bill. Congress passed a COVID-19 response bill in March that increases the federal government's share of Medicaid costs but governors say more help is needed. “The COVID-19 pandemic is drastically shrinking state and local revenue with most states experiencing a budget shortfall ranging between 5 and 20 percent,” the NGA and other groups wrote in a letter to congressional leaders earlier this month. “Even states with a lower shortfall will be challenged to provide adequate healthcare services to their residents. This leaves state and local leaders with tough choices to balance their budgets while responding to a pandemic.” For example, Colorado has already cut funding to its Medicaid dental program and cut payments to some providers by 1 percent, The Hill notes. Medicaid rates are already typically lower than rates paid by Medicare and private insurance. Other states, such as Florida and Tennessee, have put off planned improvements to the Medicaid program, like increases in provider rates and extra services for pregnant women, the report said. Federal law prohibits states receiving increased Medicaid funding from cutting required benefits, increasing premiums or restricting eligibility—restrictions Congress put in place to protect beneficiaries from losing coverage during the pandemic. That means in order to find savings, states turn to cutting provider rates, which some experts say could be disastrous, especially for those that primarily see Medicaid patients. Those providers are already struggling to maintain social distancing as they see more patients and as more people are staying at home and avoiding nonemergency care. “Medicaid provider payment cuts will compound financial damage from the pandemic, raising the risk that pediatricians, behavioral health providers and safety net clinics close their doors,” said Aviva Aron-Dine, vice president for health policy for the Center on Budget and Policy Priorities. So, we will see. The politics of federal assistance for anti-virus programs appear to be growing tougher as additional programs are considered—and, as needs for assistance grow. These battles for federal assistance are increasingly large and extended and should be watched closely as the season proceeds, Washington Insider believes.
| Rural Advocate News | Thursday July 30, 2020 |
Iowa Lawmakers' Ethanol Focus Continues Sen. Joni Ernst, R-Iowa, is keeping up pressure on EPA over biofuels, this time shifting her attention to the issue of E15 and expanding the availability of the fuel after EPA changed its rules to allow for year-round sales of the higher ethanol blend. In a letter to EPA Administrator Andrew Wheeler, Ernst pointed out that the infrastructure issues for E15 are not necessarily valid, noting that all steel fuel tanks and fiberglass tanks put in service since 1990 are approved for up to 100% ethanol. “Given the lifespan of underground tanks, almost every underground fuel tank should be able to handle E15 and higher blends of ethanol,” Ernst stated. Meanwhile, Sen. Chuck Grassley, R-Iowa, said aid for the U.S. biofuel sector may come down to decisions made by USDA Secretary Sonny Perdue. "We're in a position of depending on the Secretary of Agriculture if this $20 billion goes to him, getting some of it for ethanol," Grassley said on Tuesday, following a question from DTN. The package provides $20 billion to USDA Secretary Sonny Perdue to help agricultural producers, growers and processors. The latter is being cited by some as covering ethanol producers.
| Rural Advocate News | Thursday July 30, 2020 |
Booker Offers Legislation to Slow Plant Line Speeds Sen. Cory Booker, D-N.J., filed a bill on Tuesday that would suspend all current and future line-speed waivers for meatpacking plants during the COVID-19 pandemic, in line with a companion House bill from Rep. Marcia Fudge, D-Ohio, and others. The legislation would cover both meat and poultry processing. “The situation has only worsened since the USDA has approved nearly 20 requests from meatpacking plants to exceed regulatory limits on line speeds despite the risks posed to workers, consumers, and animal welfare,” Booker said. But the idea of slowing line speeds is being met with pushback from the U.S. meat industry. Smithfield Foods CEO Ken Sullivan said that slowing them by 50% “means euthanizing half of our nation's livestock, the collapse of farm prices (law of supply and demand), burying food in the ground, food insecurity and higher food prices for everyone including, most importantly, those that can least afford it.”
| Rural Advocate News | Thursday July 30, 2020 |
Thursday Watch List Markets At 7:30 a.m. CDT Thursday, the lineup includes weekly export sales, U.S. jobless claims, a report on second-quarter U.S. GDP and an update of the U.S. Drought Monitor. Natural gas inventory is posted at 9:30 a.m. and weather and trade news will also get traders' attention. Weather Moderate to locally heavy rain is in store for the central Plains through southern Midwest, Delta and Southeast Thursday. Some flooding is possible in areas with heavier rains. Dry conditions will be in place elsewhere. Temperature will be seasonal in northern and central areas and hot south and northwest. Heat bulletins cover much of the western and northwestern U.S.
| Rural Advocate News | Wednesday July 29, 2020 |
Coronavirus Relief Includes $20 Billion for Agriculture The Senate coronavirus relief package includes an expected $20 billion for agriculture. The relief package worth $1 trillion released this week by Republican leadership in the Senate, however, falls short, according to Democrats. And, Congress will need to act quickly and reach an agreement to pass a bill before expanded unemployment benefits expire. The Senate HEALS Act specifically provides $20.45 billion in direct funding to the Office of Agriculture Secretary Sonny Perdue, but does not make changes to how the Commodity Credit Corporation can spend money, according to the Hagstrom Report. House Speaker Nancy Pelosi, a California Democrat, criticized the Senate bill, saying, “They don’t have money for food stamps, but they have money for an FBI building.” The bill asks for $1.75 billion to rebuild the existing FBI headquarters. The House passed HEROES Act, a $3 trillion bill, would raise the max Supplemental Nutrition Assistance Program benefit, and prohibit the Trump administration from implementing three proposed rules that would cut benefits and eligibility. ************************************************************************************ Lawsuit Challenges Bioengineered GMO Food Labeling A lawsuit led by the Center for Food Safety challenges Department of Agriculture rules on labeling genetically engineered, or GMO foods, as bioengineered foods. The lawsuit claims the final regulations, issued in 2019, includes provisions “which will leave the majority of GMO-derived foods unlabeled,” as it prohibits the use of the widely known terms GMO and GE. The Center for Food Safety is representing a coalition of food labeling nonprofits and retailers, including the Natural Grocers, operating 157 stores in 20 states, and Puget Consumers Co-op, the nation's largest community-owned food market. CFS legal director George Kimbrell, counsel in the case, says, "The American public successfully won GE food labeling after more than a two-decade fight, but the Trump rules fall far short of what consumers reasonably expect and the law requires.” The Center for Food Safety also challenges USDA's allowance of electronic or digital disclosure on packaging, also known as "QR code" or "smartphone" labeling, without requiring additional on-package labeling, among other issues. ************************************************************************************ Farmers Deserve a Seat at the Table in Milk Pricing Policy The American Farm Bureau Federation released its final report on priorities for milk pricing reform, calling for more democracy and a more equitable program for dairy farmers. A Farm Bureau Federal Milk Marketing Order Working Group worked for a year to examine the system and develop recommendations to modernize the current FMMO system. Among AFBF's priorities is amending the Agricultural Marketing Agreement Act to allow dairy farmers to directly vote on Federal Milk Marketing Order issues. Currently, only dairy farmers who are independent and not members of cooperatives may cast individual ballots. Cooperatives may allow their members to vote independently, but then lose their ability to bloc vote on behalf of their non-participating members. AFBF supports allowing modified bloc-voting, which would allow co-op members to vote independently, while allowing cooperatives to cast ballots for farmers who choose not to cast an individual ballot. Other recommendations in the final report include expanding price discovery and examining alternative ways to price fluid milk and improve risk-sharing between farmers and processors. ************************************************************************************ China Asks for Packages from U.S. to Investigate Unsolicited Seed Mailings The China seed saga continues as Chinese officials ask for packages from the U.S. to investigate. In a daily briefing with media, a spokesperson with China’s Foreign Affairs Ministry Tuesday stated China Post, China’s state-owned postal service, has contacted the U.S. Postal Service, asking it to send fake packages to China for investigation. The spokesperson noted China is a member of the Universal Postal Union, which prohibits plant seeds as imports, or in transit, for member countries. China Post says, for some of the packages, the return address labels “turned out to be fake ones with erroneous layouts and entries,” suggesting the origin of the packages is unknown. Reports of unsolicited seeds showing up in U.S. mailboxes surfaced last week. The Department of Agriculture and several states urge residents to report the packages to state agriculture officials and dispose of the seeds properly. USDA considers the practice agricultural smuggling and is investigating. ************************************************************************************ NCBA Addresses Checkoff Referendum Petition The National Cattlemen’s Beef Association this week released its response to a petition calling for a vote on the Beef Checkoff. A group of cattle organizations, including R-CALF USA, launched the petition earlier this month. NCBA President Marty Smith says, “NCBA fully supports the producers’ right to have their voices heard on the future of the checkoff. However, we also believe the petition and signature gathering processes should be transparent and conducted with integrity.” Smith says the Beef Checkoff has a long track record of solid returns for each dollar invested, adding, “we believe that a majority of cattlemen and women stand behind the program.” The Department of Agriculture also responded, stating a group of ten percent or more of the number of cattle producers must request the referendum. USDA also questioned the methods of gathering signatures, saying, “USDA will apply additional scrutiny to petition signatures obtained through an online platform and will consider whether any signatures have been obtained subject to improper influence or coercion.” ************************************************************************************ Potatoes USDA: Retail Potato Sales Reach Record highs Retail potato sales reached a five-year record high July 2019 through June 2020. U.S. potato marketing organization Potatoes USA reports total potato sales increased by 11 percent in dollars and ten percent in volume. Every category, except deli-prepared sides, increased in both dollar and volume sales. Frozen, dehydrated, and canned potatoes saw double-digit increases in both dollar and volume sales. Potato chips and fresh potatoes make up the majority of volume sales, and both saw increases in dollars and volume. Fresh potato sales increased 15 percent and ten percent in volume sales compared to the previous year. All fresh potato types increased in volume sales, except for red and fingerling potatoes. Petite potatoes had the highest increase in dollar and volume sales. All pack sizes showed double-digit growth in dollar sales. Pack sizes greater than ten-pound bags saw an increase in excess of 20 percent in dollar and volume sales. Fresh potatoes had a larger dollar sales increase than any of the last five marketing years.
| Rural Advocate News | Wednesday July 29, 2020 |
Washington Insider: Coronavirus Relief Fight Renewed Bloomberg reports this week that Senate Majority Leader Mitch McConnell, R-Ky., is taking the $1 trillion GOP virus relief package into negotiations with Democrats weighed down by a divided party and friction with the White House. The report notes a “fresh urgency for Republicans to act” months after McConnell pressed the “pause button” on new aid, as virus cases and deaths have soared and the president's poll ratings have slumped, threatening GOP control of both the White House and Senate. It also notes that Senate Republicans are split sharply, with some conservatives such as Sen. Ted Cruz, R-Texas, wanting to spend far less, if anything, on another stimulus amid record deficits, while others want more aid to state and local governments. Democrats, who've proposed a $3.5 trillion virus relief package, are eager to exploit those divisions. After meeting for almost two hours Monday night with Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows, Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., criticized the GOP proposal and said McConnell wouldn't even be able to count on Republican backing if it was put before the Senate. “It's pretty clear they don't have 51 votes in the Senate among the Republicans for a proposal,” Schumer said. With supplemental unemployment insurance expiring and other elements of the last stimulus legislation beginning to dry up, Congress has little time for extended negotiations, Bloomberg thinks. Lawmakers are set to leave for an August break in two weeks and will be facing a timetable compressed by the looming November election when they return in September. “The American people need more help, they need it to be comprehensive, and they need it to be carefully tailored to this crossroads,” McConnell said as he rolled out the GOP package. The bill would trim extra unemployment benefits, send $1,200 payments to a majority of Americans and shield schools, businesses, and other groups from lawsuits stemming from infections. Bloomberg noted key items in the bill include, among other things, $105 billion in education funding, with $70 billion going toward elementary, middle and high schools; $29 billion for colleges, and $5 billion for a flexible fund. Two-thirds of the funds would go to schools that institute reopening plans and the rest to schools as a whole, under existing federal formulas. In addition, it would include a second round of the Paycheck Protection Program aimed to target those worst affected and a new government-guaranteed, long-term loan initiative of almost $60 billion created for seasonal firms and those in low-income communities as well as $16 billion to help states ramp up tests and contact tracing. Republicans in the Senate had initially sought $25 billion in new funds. Also, the bill seeks to end dependence on foreign supply chains for personal protective equipment through tax credits to spur domestic manufacturing. The bill also includes $10 billion for the nation's airports as the pandemic continues to strain the aviation industry, although that figure is less than the $13 billion requested by airport organizations. Facilities that receive aid would have to keep at least 90% of their workers employed through March 2021. More than 3,000 U.S. airports already received a combined $10 billion under the March coronavirus relief package. The bill also includes $1.75 billion for a new FBI headquarters in Washington, a priority for the president who wants to prevent the facility from being moved to the suburbs. Plans to relocate the FBI from its current location about four blocks from the White House had been in the works since about 2012 — but were scuttled after the president took office. Not included in the proposal is any new money for states and cities to cope with swelling budget shortfalls, leaving them to contend with a grave financial crisis that's already forcing them to slash spending, furlough workers and delay major projects as tax revenue disappears. That's a stark contrast to the approximately $1 trillion that Democrats included in the bill the House passed last May, Bloomberg said. So, we will see. The politics surrounding coronavirus relief have hardened significantly in recent weeks, as the pre-election debate has intensified. While the need for additional support has increased as the virus attacks have continued with the approach of the new school year — but so has the “sticker shock” of the growing deficits. These are concerns and debates that producers should watch closely as the fights intensify, Washington Insider believes.
| Rural Advocate News | Wednesday July 29, 2020 |
USDA Addresses Unsolicited Seeds Received by Some Americans Consumers in multiple states have received packages of seeds that are labeled as jewelry or have Chinese language on the packets. Agriculture commissioners in several states have warned against planting the seeds. States reporting the deliveries include Arizona, Kansas, Louisiana, Ohio, Oklahoma, Utah, Virginia and Washington. USDA's Animal and Plant Health Inspection Service (APHIS) tweeted Tuesday they are “working closely with @CBP and State Depts of Ag re: unrequested seeds.” They urge those receiving the seeds to contact their state ag department or the state Plant Health Office. “Keep packaging and do not plant seeds from an unknown origin!” APHIS urged. Chinese foreign ministry spokesman Wang Wenbin said China strictly follows restrictions on sending seeds and said the records on the packages appear to have been falsified, according to checks by China's postal service.
| Rural Advocate News | Wednesday July 29, 2020 |
CFAP Payments Reach $6.55 Billion USDA has now paid out $6.55 billion under the Coronavirus Food Assistance Program (CFAP) with 473,124 applications approved as of July 27. Of the $6.55 billion, USDA has paid out $3.31 billion for livestock, $1.73 billion for non-specialty crops, $1.29 billion for dairy and $227.5 million for specialty crops. Payouts by commodities are led by $2.87 billion for cattle, $1.29 billion for milk, $1.18 billion for corn, $416.1 million for hogs, $330.8 million for soybeans and $164.6 million for upland cotton. USDA initially projected that the initial round of payments to producers (80% of estimated gross payments) would be $3.01 billion for non-specialty crops, $2.30 billion for special crops, $2.78 billion for dairy, $4.35 billion for cattle, $2.14 billion for hogs and pigs and $80 million for other sectors for a total of $15.38 billion. The top six states receiving the aid are Iowa ($678.8 million), Nebraska ($484.2 million), Minnesota ($420.4 million), Wisconsin ($384.2 million), Texas ($355.6 million) and California ($345.4 million).
| Rural Advocate News | Wednesday July 29, 2020 |
Wednesday Watch List Markets In addition to weather forecasts and trade news, an index of U.S. pending home sales is set for 9 a.m. CDT, followed by the U.S. Energy Department's weekly inventory report at 9:30 a.m. The Federal Reserve will have an announcement at 1 p.m. CDT and is expected to keep interest rates near zero. Weather A front and a developing system will combine to provide periods of moderate to heavy rain from the Black Hills in South Dakota through the Southeast on Wednesday. There is a risk for flooding with these showers in the Black Hills and also for most of Oklahoma as well.
| Rural Advocate News | Tuesday July 28, 2020 |
USDA Announces More Farmers to Families Food Box Program Purchases The Department of Agriculture will launch a third round of Farmers to Families Food Box Program purchases in September. The purchases will spend the balance of $3 billion authorized for the program. So far, over 46 million Farmers to Families Food Boxes have been invoiced and delivered. Agriculture Secretary Sonny Perdue says the program "is accomplishing what we intended – supporting U.S. farmers and distributors and getting food to those who need it most." In the third round of purchases, USDA plans to purchase combination boxes to ensure all recipient organizations have access to fresh produce, dairy products, fluid milk, and meat products. In the ongoing second round of purchasing and distribution, which began July 1, USDA aims to purchase up to $1.47 billion of food for the program. For the second round, USDA extended contracts of select vendors from the first round of the program worth up to $1.27 billion. The first round of purchases totaled more than $947 million from May 15 through June 30, 2020. ************************************************************************************ U.S. Residents Receiving Unsolicited Seeds from China Numerous state agriculture departments, along with the U.S. Department of Agriculture, are urging consumers not to plant seeds sent to them from China. Americans across the country report receiving unsolicited seeds from China in packages labeled as jewelry. These unknown seeds are a concern for American farmers, as they could be invasive species, introduce diseases to local plants, or be harmful to livestock. USDA considers the practice agricultural smuggling, and all states reporting the practice are asking consumers to notify their state agriculture departments. Consumers are asked not to open any sealed package containing seeds, and not throw unsealed seeds in the trash, as they could grow in landfills. The packages may be part of what is called a brushing scheme, where criminals buy their own cheap products, send them to a real address, then write a positive review about their product online. Similar packages containing seeds are showing up in mailboxes in Britain, as well. ************************************************************************************ Rural America 2020 Campaign Says Trump Policies Hurting Farmers A new political campaign, Rural America 2020, takes aim at the Trump administration. Founded by a self-described former Trump voter, Ohio farmer Chris Gibbs, the campaign advocates for policies that benefit agriculture and rural America. The group seeks to bring attention to President Donald Trump’s trade war, alleged rural community failures, and provide policy solutions for a stronger rural America. The campaign cites a rise in farm bankruptcies, farm debt and the decline in net farm income. Gibbs says, “Rural communities all across this nation are struggling under this administration.” He adds, “Too often rural America is portrayed with a broad brush as Trump country," saying Rural American 2020 is a way for rural residents to speak out against the Trump administration. In addition to building community-level coalitions in Michigan, Ohio, Pennsylvania, Wisconsin, Minnesota and Iowa, Rural America 2020 will be advertising in key states to highlight farmer's voices who are critical of the President and his policies. ************************************************************************************ Grains Council Hosting Virtual Annual Meeting Amid the ongoing COVID-19 pandemic, the U.S. Grains Council kicked off its 60th Annual Board of Delegates Meeting virtually Monday. The meeting seeks to help U.S. grain sector leaders assess the challenges affecting their industry and offer reassurance grain exports continue despite disruptions. The meeting began on an encouraging note from USGC Chairman Darren Armstrong, a farmer from North Carolina, who reviewed the current marketing year’s top five markets for U.S. corn – Mexico, Japan, Colombia, South Korea and China, and the top three markets for U.S. sorghum. Armstrong says, “While the current domestic demand situation is challenging, the export outlook has bright spots to share.” USGC will hold its Board of Delegates meeting and conduct elections today (Tuesday.) The meeting will wrap up on Wednesday with virtual Advisory Team meetings in the morning and a closing general session in the afternoon. Armstrong adds, “Throughout this extraordinary time, U.S. farmers have never stopped working and neither has the U.S. Grains Council.” ************************************************************************************ BQA Program Earns Compliance with International Animal Welfare Standards The Beef Quality Assurance Program, known as BQA, is now recognized as an industry-leading animal welfare program. Funded by the Beef Checkoff and managed by the National Cattlemen’s Beef Association, the program complies with the International Organization for Standardization Animal Welfare Management General Requirements and. The standard was developed in 2016 for programs to show they are aligned with the principles of the World Organization of Animal Health Terrestrial Animal Health Code. Julia Herman, Beef Cattle Specialist Veterinarian for NCBA, says affirmation that the program complies with the specifications is “an important recognition of U.S. cattle producers’ continued commitment to delivering a safe, high quality beef supply while maintaining the highest animal welfare standards.” Developed more than 30 years ago, the BQA program has become the industry standard for delivering education and resources to cattle producers. More than 85 percent of the U.S. beef supply today is managed by BQA-certified farmers and ranchers, according to the National BQA Database. ************************************************************************************ USDA Launches New Farmers.gov Features to Help Farmers Hire Workers New features on the farmers.gov website will help facilitate the employment of H-2A workers. The Department of Agriculture announced the new features Monday, which includes a real-time dashboard that enables farmers to track the status of their eligible employer application and visa applications for temporary nonimmigrant workers. Agriculture Secretary Sonny Perdue says USDA’s goal is to help farmers navigate the complex H-2A program administered by Department of Labor, Department of Homeland Security, and the State Department. The changes aim to make hiring a farmworker an easier process for farmers to navigate. The changes also include a streamlined login process and enables easy access to the Department of Labor's Foreign Labor Application Gateway. Additionally, the changes allow farmers to track time-sensitive actions and allows for farmers to access all application forms online. Secretary Perdue says, "We will continue working to streamline these and other processes to better serve our customers across the country.”
| Rural Advocate News | Tuesday July 28, 2020 |
Washington Insider: National Debt Concerns Grow The Hill is reporting this week that a group of Senate Republicans are raising red flags over the rapid expansion of the Federal Reserve's balance sheet. They are raising concerns that this could impact interest rates, the strength of the U.S. dollar and the overall U.S. economy “before colleagues realize it's a serious problem.” The Hill says these worries are being led by Sens. Rick Scott, R-Fla., David Perdue, R-Ga., James Lankford, R-Okla. They show that opposition to passing a stimulus bill that exceeds $1 trillion is spreading in the GOP conference beyond Tea Party stalwarts such as Sens. Rand Paul, R-Ky., and Ted Cruz, R-Texas. In addition, as deficit concerns go mainstream in the Senate GOP conference, pressure is rising on Senate Majority Leader Mitch McConnell, R-Ky., to take a hard line with the administration and Senate Democrats in the relief negotiations. The stakes of the current talks are high, especially since McConnell is up for reelection against a well-funded Democratic opponent. He wants to deliver for his state but also to avoid a backlash from the conservative right, including Paul and Cruz, who have been highly critical of the projected cost of the next package. Now more mainstream members of the GOP conference are joining in the alarm over the Federal Reserve's balance sheet, which has ballooned from $4.27 trillion on March 11 to $6.93 trillion on July 22. During that span, the Fed's ownership of U.S. Treasury securities has soared from $2.52 trillion to $4.27 trillion. Some Republicans worry that with the U.S. debt climbing, they're seeing a drop off in demand in the world's financial markets for U.S. bonds, which could foreshadow climbing interest rates and a major problem for the economy down the road. Sen. Scott said that he's also worried about the price of gold going up. He warned GOP colleagues during private discussions on the stimulus bill. Asked about the chances of dropping demand for U.S. debt, Scott says “it's already happened.” Monthly statements from the Treasury Department show that debt held by the public jumped by $3.1 trillion from the beginning of March to the beginning of July. During that time, the Fed's outright ownership of U.S. Treasury securities climbed $1.74 trillion. The Hill estimated that the Fed has purchased about 56 percent of the Treasury debt issued in March, April, May and June. “Sen. Scott is right that over this four-month period, more than half of the increase in debt held by the public was purchased by the Fed,” said David Wilcox, senior fellow at the Peterson Institute for International Economics. He noted that most of the Fed purchases occurred during the height of the financial panic in March and April. “This was a period of extraordinary dysfunction for a six-week period from mid-March to the end of April and during that period—yes, absolutely — it was the design of the Fed to purchase Treasury debt at an historically unprecedented pace,” he said. Wilcox noted that Fed purchases of treasuries moderated in May and June to a pace of “about $25 billion per week” and interest rates have remained low. Still, some GOP senators worry that interest rates could ratchet up and catch Washington by surprise — which would require Congress to appropriate tens of billions of dollars more on an annual basis to service the debt. Perdue, the former CEO of Reebok and Dollar General, said he's raised his concerns with Treasury Secretary Steven Mnuchin and National Economic Director Larry Kudlow. “We've gone from $23 [trillion] to $26 trillion in debt,” he said. “I'm really worried about the potential impact here of another $1 trillion or whatever we end up with. We need to be very circumspect. Anything we need to do now needs to be very targeted,” he said. Perdue worries the Fed balance sheet could grow to more than $13 trillion and said that he's raised the issue with Federal Reserve Chairman Jerome Powell. And, he said he was worried about muted demand for U.S. debt at a recent auction. Like Scott, Perdue thinks the Fed had to step in and buy up treasuries to make up for diminished demand for U.S. debt in the financial markets. “The Fed stepped in and what that did is it kept interest rates low, artificially,” he said. “Because if you were to go to the market, supply and demand, you'd have to increase interest rates to get people to buy it.” Bank of America Merrill Lynch chief investment strategist Michael Hartnett warned on Friday that growing debt and maxed out fiscal policy will cause a “great debasement” of the dollar. Hartnett wrote that erosion of the dollar is “underway as the default narrative for U.S. economy with excess debt, insufficient growth, and maxed-out monetary & fiscal stimulus.” So, we will see. It is not surprising that concerns about growing interventions in the economy are raising risks, observers say. However, the coronavirus is still the main threat and Congress seems certain to craft another big relief bill -- in spite of growing discomforts about impacts on the economy. These are debates producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Tuesday July 28, 2020 |
US-China Talks On Progress of Phase One Agreement Up In Air The head of China's trade negotiating team, Vice-Premier Liu He, and U.S. Trade Representative Bob Lighthizer, are expected to hold talks in August, the South China Morning Post (SCMP) reported, echoing prior reports from other media and including remarks by Lighthizer earlier this month. The meeting will be “an important inflection point” to allow both sides to assess the progress of the deal, a source told the SCMP. However, if because of the prevailing tensions between Washington and Beijing, “there was less of an appetite for engagement at the moment,” the two sides might agree that a telephone conversation between Lighthizer and Liu on May 8 had satisfied the “meeting” clause of the deal, the source said.
| Rural Advocate News | Tuesday July 28, 2020 |
FY 2021 Ag Spending Approved, But Package Faces Veto Threat The House on Friday voted 224-to-189 to approve a $259.5 billion four-bill measure consisting of the Agriculture, Interior-Environment, Military Construction-VA and State-Foreign Operations bills. The package includes $37.5 billion in emergency spending that Republicans and the White House contend busts the budget caps deal reached last summer and contains numerous policy riders they labeled "poison pills” which were factors behind a White House veto threat, including blocking food stamp restrictions for able-bodied adults without children. The four House bills will now go to the Senate where they are likely to sit until after the November 3 election, at the earliest.
| Rural Advocate News | Tuesday July 28, 2020 |
Tuesday Watch List Markets Monday's higher crop ratings for corn, soybeans and spring wheat are apt to be bearish market factors for Tuesday's trading. The latest weather forecasts remains important to grain traders with soybeans approaching pod-filling. The Federal Reserve begins a two-day meeting and at 9 a.m. CDT, an index of U.S. consumer confidence is due out. Any trade news will also be noticed. Weather Tuesday will be warm and dry across northern and central crop areas. Rainfall will be confined to an arc of shower and thunderstorm activity in portions of the Southern Plains and southern Midwest. Conditions will generally favor corn moving into its filling stages and soybeans in pod-setting and pod-filling stages, along with developing spring wheat.
| Rural Advocate News | Monday July 27, 2020 |
House Passes Ag Appropriations Bill Despite White House Opposition On Friday, the House of Representatives passed a minibus of fiscal year 2021 appropriations bills, which included the agriculture bill. However, the Hagstrom Report says the White House is opposed to the overall bill and cited some specific provisions as the reason for its opposition. The final vote was 224-189. Seven Democrats, including House Ag Chair Collin Peterson, voted with Republicans in voting against it. Another 17 Republicans didn’t vote. The Senate hasn’t yet acted on appropriations bills. It’s not clear if the House and Senate will finish the appropriations process or pass a continuing resolution that will fund the government either until after the election or next year. In a statement of administration policy, the Office of Management and Budget says the Trump administration is concerned about provisions like those that would “stop historic welfare reforms at USDA.” OMB also says that such provisions would degrade the ability of USDA to move more families forward, provide equitable treatment across state lines, and effectively target program resources to those most in need. “The OMB statement didn’t threaten a veto of H.R. 7608, instead saying, “The administration looks forward to working with Congress to address our concerns as the Fiscal Year 2021 appropriations process moves ahead.” ********************************************************************************************** China Continues to Buy More U.S. Soybeans China is continuing to ramp up its purchases of U.S. soybeans despite the uncertainties regarding the Asian nation’s ability to fulfill its Phase One Trade Agreement commitments with the U.S. Last Thursday made it eight consecutive days that the USDA announced additional export sales of soybeans to China and other locations. The USDA says private exporters filed reports of agricultural export sales totaling 132,000 metric tons of soybeans for delivery during the 2020-2021 marketing year, which will begin on September 1. John Baize is an analyst with the U.S. Soybean Export Council. He says as Chinese buyers rush to fill deliveries that crushers will need over the next few months, U.S. soybeans coming from the Pacific Northwest are $6 cheaper than Brazil’s, giving American soybeans a competitive edge. USDA also reported export sales of 211,300 metric tons of soybeans for delivery to unknown destinations during the 2020-2021 marketing year. Baize says these are likely headed to somewhere in the European Union. ********************************************************************************************** USGC Tech Talk Series Expanding DDGS Sales Opportunities in Asia The U.S. Grains Council recently held two technical webinars intended to help with expanding future export opportunities for Dried Distiller’s Grains with Solubles (DDGS) in Southeast Asia. Caleb Wurth, USGC’s Assistant Director of Southeast Asia, says, “Southeast Asia will be one of the strongest performing markets for U.S. DDGS this marketing year, despite COVID-19 challenges.” The Council calls Southeast Asia a “trader’s market” thanks to expansive geography and a mix of nationalities. The extensive technical education and trade servicing done by USGC staff members are expanding the footprint of DDGS in countries across the region. Vietnam, Indonesia, Thailand, and New Zealand all rank among the top ten buyers for the American ethanol co-product. Other markets like the Philippines and Malaysia are also showing increasing interest and purchases of U.S. DDGS, as well as other corn co-products. “Southeast Asia is now the destination for one-third of all U.S. DDGS exports,” Wurth adds. “The strong performance comes despite the challenges of movement restrictions, a lack of available containers, and new trade agreements signed between major markets and U.S. competitors.” Wurth also says the council is maintaining a high level of engagement in the region despite the constraints of COVID-19. ********************************************************************************************** Florida Growers Urged to Comment on Unfair Produce Trade with Mexico The Florida Ag Department and Commissioner Nikki Fried (Freed) are strongly encouraging producers to submit comments for the upcoming field hearings on unfair produce trade with Mexico. The Office of the U.S. Trade Representative recently announced virtual field hearings will take place on August 13 and 20. Growing Produce Dot Com says these hearings will allow the Commerce Department and the Trump Administration an opportunity to hear from Florida’s seasonal produce growers on the urgent need for federal action on unfair foreign trade. “The concerns of Florida’s farmers with the U.S.-Mexico-Canada Agreement remain the same as when NAFTA was renegotiated two years ago,” says Fried. “The deal lacks protections against unfair trade practices that devastated our state’s produce growers.” With the USTR hearings scheduled for August, Commissioner Fried says now is the time for Florida’s growers and others affected by unfair foreign trade to make their voices heard. “Our farmers are the best in the world and deserve a level playing field to compete on,” she adds. A Florida Department of Ag report shows that imported Mexican produce has caused more than $3.7 billion in losses for U.S. producers since 2000. Mexico has expanded its share of the U.S. domestic market by 217 percent in that time. ********************************************************************************************** Ag Groups File Appeal on California’s Prop 12 Back in 2018, California voters passed Proposition 12, which is scheduled to go into effect on January 1 of 2022. A Protect the Harvest release says the bill increases regulations on the egg, pork, and veal producers both in the state of California as well as any out-of-state producers that want to sell products in the state. Proposition 12 was written, funded, and marketed by the Humane Society of the United States and their “Prevent Cruelty California” coalition. Right now, just one percent of pork producers comply with the housing requirements of Prop 12. When it goes into effect in 2022, a majority of the nation’s pork farmers won’t be allowed to sell their products in California. The American Farm Bureau and the National Pork Producers Council have jointly filed an appeal with the U.S. Court of Appeals for the Ninth Circuit to ask that Prop 12 be ruled invalid. The appeal says that Prop 12 is unconstitutional and seeks to allow California to regulate states outside its governance by requiring producers to abide by the state’s own regulations to do business there. Protect the Harvest says it is “extremely hopeful” that the NPPC and the Farm Bureau are successful in their appeal. ********************************************************************************************** NCGA Hosted a “Virtual Fly-In” to Washington, D.C. Even during COVID-19, the National Corn Growers Association is working to help improve the economic situation for U.S. corn farmers. Shortly after the group held its first Virtual Corn Congress, the organization also hosted a virtual fly-in to Capitol Hill on July 22-23. NCGA typically hosts a fly-in for corn growers to Washington, D.C., in conjunction with the Corn Congress that normally takes place in July. The NCGA fly-ins allow farmers to provide members of Congress and their staffs first-hand accounts of how policies from Washington impact their farms. While coronavirus restrictions prevented producers from traveling to Capitol Hill for face-to-face meetings, the virtual fly-in allowed members to still share their stories and weigh in on current policy discussions. Growers talked about a wide range of topics, such as assistance for producers impacted by COVID-19, the benefits of ethanol and a strong RFS, along with the push for a Low Carbon Octane Standard. 42 corn growers and NCGA state staff took part in 109 virtual meetings with Congressional members and their staffs.
| Rural Advocate News | Monday July 27, 2020 |
Washington Insider: House Passes Spending Package POLITICO is reporting this week that the House approved a $259.5 billion government spending package on Friday in the Democrats' opening bid to ward off a government shutdown -- a potentially devastating scenario while the nation is embroiled in a pandemic and the worst economic downturn since the Great Depression. The four-bill minibus boosts budgets at the departments of State, Interior, Agriculture, Veterans Affairs and other agencies with billions of additional dollars, while imposing new restrictions on the administration “that guarantee it will never become law,” POLITICO says. It's the first appropriations measure to move through any chamber of Congress this year but lawmakers are seen as almost certainly hurtling toward a stopgap spending bill to keep the government open beyond the end of the fiscal year on Sept. 30. Election year politics are expected to “sap political will to craft a bipartisan spending deal in the coming weeks, while Congress wrestles with another $1 trillion-plus coronavirus response package to combat creeping unemployment and spiking infections across the country.” The four-bill minibus is the first of two Fiscal Year (FY) 2021 funding bundles that House Democrats plan to pass by the end of the month. The House will take up a seven-bill, $1.4 trillion package next week that would fund the Pentagon and the departments of Labor, Health and Human Services, Education, Homeland Security, Justice, Transportation, Energy and more. Once both packages are passed, the House will have approved nearly all of their fiscal 2021 appropriations bills, except the measure that funds parts of the Legislative Branch. That bill didn't include a cost-of-living adjustment for lawmakers, which a number of members believe is crucial to living in DC after enduring more than a decade of pay freezes. House leaders could still decide to bring the Legislative Branch bill to the floor as a standalone measure. The Congressional Progressive Caucus is also pushing to strip the Homeland Security spending bill from the $1.4 trillion minibus, with some members loath to fund the agencies charged with implementing the president's immigration agenda and carrying out paramilitary action in Oregon and Washington state. But the Congressional Hispanic Caucus is backing the Homeland Security bill and top appropriators say they have no plans to yank it from the floor. CHC Chair Joaquin Castro, D-Texas, Reps. Earl Blumenauer, D-Ore., Suzanne Bonamici, D-Ore. and others have also submitted an amendment that would rein in the administration's efforts to quell protests in Oregon and Washington. “We really can't afford not to pass this,” Rep. Lucille Roybal-Allard, D-Calif., chair of the House Homeland Security spending panel, told POLITICO on Friday. “We need to send a very clear message to DHS that this isn't business as usual. They have to be held accountable and there's going to be consequences.” The four-bill measure passed by the House on Friday would provide $65.9 billion for the State Department, the U.S. Agency for International Development and other programs, marking an $8.5 billion increase over current funding or a nearly 15 percent hike. That includes more than $10 billion for global efforts to combat the coronavirus pandemic. Democrats also included $12.5 billion in emergency funding to address rising veterans' health care costs. The Environmental Protection Agency and the Interior Department would receive more than $9 billion and nearly $14 billion, respectively. More than $4 billion would go to rural development programs and more than $3 billion would flow to the Food and Drug Administration. The package also includes a number of “poison pills” aimed at the administration, including provisions that would criticize the president's “go it alone” approach to foreign aid, restore funding for the World Health Organization, block the administration's crackdown on food stamps and bar drilling in the Arctic National Wildlife Refuge. The Senate, meanwhile, hasn't even begun its appropriations process this year. Democrats in the upper chamber want to add billions of dollars in emergency pandemic aid to annual spending bills, in addition to police reform provisions, just as House Democrats did. But Senate Appropriations Chair Richard Shelby, R-Ala., has said those issues should be dealt with separately. The first House minibus comes after Congress secured a two-year budget deal last summer which boosted spending and allotted a total of $740.5 billion in defense funding and $634.5 billion in nondefense funding for fiscal 2021. So, we will see. At this point in this year, nearly every decision is political and many are toxically so — and, none more than the spending bills. Certainly, these fights should be watched closely by producers as they proceed, Washington Insider believes.
| Rural Advocate News | Monday July 27, 2020 |
Trump Warns China Trade Deal Means Less to Him Now President Donald Trump Thursday remarked during a briefing on the COVID-19 situation that the U.S.-China Phase One trade deal “means less to me now than it did when I made it. It just means much less to me, can you understand that?” Earlier this week, Trump had touted the recent corn sales to China as a notable development. This does not necessarily mark a shift with Trump who has stepped up his negative comments on China in recent weeks. And, China has continued to purchase U.S. ag goods with announcements of daily sales taking place and additional purchases confirmed in the Weekly Export Sales report. The harsh rhetoric from both sides in their diplomatic disputes has not yet led to China halting its purchases or pulling out of the Phase One agreement.
| Rural Advocate News | Monday July 27, 2020 |
Airbus Removes Subsidies Found In Violation By WTO In Bid To End US Sanctions Airbus announced it reached agreement with the French and Spanish governments to amend repayable launch aid arrangements deemed by the WTO to be an unfair subsidy relative to the Airbus A350 airplane. The launch aid arrangement was a loan linked to exports that helped Airbus develop new models with low interest rates on the loan. “After 16 years of litigation at the World Trade Organization, this is the final step to stop the longstanding dispute and removes any justification for U.S. tariffs,” Airbus said in a statement. “The tariffs imposed by the United States Trade Representative (USTR) are currently harming all targeted industry sectors, including U.S. airlines, and are adding to a very difficult environment as a consequence of the COVID-19 crisis.” There are a number of ag products already hit by tariffs and more that the U.S. is considering hitting with heavier tariffs in the dispute, setting a deadline of August for comments on the plan. “With this final move, Airbus considers itself in complete compliance with all WTO rulings,” Airbus said. A loan from the UK, also part of the dispute, has already been repaid, and the aid extended to Airbus by Germany has already been amended. There has been no reaction yet from the U.S. side.
| Rural Advocate News | Monday July 27, 2020 |
Monday Ag Weather Brief: Markets Heading into the final week of July, grain traders will keep an eye on the latest weather forecasts and any trade news that develops. A report on U.S. durable goods orders in June is due out at 7:30 a.m. CDT, followed by weekly grain export inspections at 10 a.m. Traders will compare weather notes with the latest crop ratings from USDA's Crop Progress report, set for 3 p.m. CDT. Weather Showers and thunderstorms are in store Monday for large portions of the Southern Plains through eastern Midwest. Amounts will be light to moderate; however, locally heavy activity brings on some flash flood threat as well. This rain adds to precipitation that occurred during the past weekend in the northern and western Midwest to bring on largely favorable crop moisture conditions for late July. Showers are also in store for the Delta and Gulf Coast. Temperatures will be seasonal north and central and very warm to hot south, beneficial for filling corn and pod-setting soybeans.
| Rural Advocate News | Friday July 24, 2020 |
Senate and House Coronavirus Aid Packages Similar in Amounts Senator John Hoeven of North Dakota told the Hagstrom Report this week that he thinks the Senate coronavirus aid package will be similar to the House HEROES Act. The two packages will contain similar amounts of money for agricultural assistance, but Hoeven says that the nutritional provisions will likely be up to Senate leadership. Hoeven is chair of the Senate Agriculture Appropriations Subcommittee. He says USDA will start with the $14 billion that was previously allocated to the Commodity Credit Corporation but notes that Congress will push that number higher so that USDA will have as much as $35 billion in additional assistance for farmers. Hoeven thinks the HEROES Act has roughly $68 billion set aside for agriculture and nutrition and that $33 billion of that is for aid to farmers and ranchers. USDA won’t be able to use the $14 billion in CCC money until July first. However, they can now use that money to pay out the rest of the $16.5 billion promised to farmers and ranchers under the Coronavirus Food Assistance Program. The Senate bill gives the USDA the ability to make payments to ethanol plants and aid to livestock producers who had to dispose of animals they couldn’t get slaughtered. ********************************************************************************************** Ranchers Call House Legislation a “Reckless Land Grab” The National Cattlemen’s Beef Association called Wednesday a “sad day for public lands and the American taxpayer.” Kaitlynn Glover, the Executive Director of Natural Resources for NCBA and the Public Lands Council Executive Director. She says House passage of the Great American Outdoors Act shows representatives “have chosen to willingly relinquish their responsibility to engage in important land conservation decisions far into the future.” The NCBA says the bill will allow for virtually unrestricted spending for lands and waters across the U.S. that will be added to a federal estate that is already in disrepair. “The 310 members of the House that supported the bill sentenced these lands to a bleak future, complete with the expectation that these lands will be added to the deferred maintenance backlog in a not-so-distant future,” says Glover. “The ranching community is asking President Trump to veto this reckless excuse for a land management bill.” The GAO Act gives government agencies free rein to spend a minimum of $360 million every year in Land and Water Conservation Fund money to acquire new private land without any oversight from Congress. The Senate passed the GAO Act in June of 2020. ********************************************************************************************** More Reaction to USDA Beef Investigation Report The USDA released a report on its investigation into price upheaval within the U.S. beef industry, specifically as it relates to a fire in Holcomb, Kansas, as well as disruptions caused by COVID-19. Brooke Miller, President of the U.S. Cattlemen’s Association, says, “The top-line considerations detailed in this report provide a roadmap for returning transparency and true price discovery in the cattle marketplace. USCA is advocating for making these changes through a reauthorization of Livestock Mandatory Reporting, which is set to expire on September 30.” Miller also says his group co-authored a letter to Senate Ag Chair Pat Roberts and asked for a hearing on the state of the U.S. cattle industry. The letter was “met with silence,” something he calls unacceptable. The National Farmers Union says price-fixing in the meat industry is nothing new. While they welcome the USDA report, the group says it must be accompanied by real reforms. “Radical and immediate action is needed to create a fair and balanced food system,” says NFU President Rob Larew. “We’re asking USDA and other federal agencies to strengthen protections for farmers, enforce existing regulations, and prevent undue market power in the future.” Larew says the agency must continue to conduct a thorough investigation, saying the NFU “intends to hold them to account.” ********************************************************************************************** The Fertilizer Institute Applauds Extension of Chemical Facility Safety Measures The Fertilizer Institute is happy that President Trump and Congress extended the Chemical Facility Anti-Terrorism Standards (CFATS) for three years. “A long-term extension of the CFATS program is what the fertilizer industry supported and wanted to see,” says TFI President Corey Rosenbusch. “This provides the industry with the ability to properly plan and invest in measures that promote security at our facilities.” The secure and safe handling of fertilizers is the highest priority for the Fertilizer Institute and its members. “The numbers speak for themselves,” Rosenbusch says. “The fertilizer industry is twice as safe as our chemical industry peers. We actively participate in and sponsor numerous safety initiatives.” He says voluntary, industry-driven programs like the ResponsibleAg Program help to enhance compliance by the agricultural retailers with a variety of federal regulations, including those administered by the Department of Homeland Security. “Fertilizers are necessary to grow the crops that feed the world,” Rosenbusch adds. “Half of all food grown in the world today is made possible through the use of fertilizer. We’re committed to ensuring the world has the food, fuel, and fiber it needs, and that fertilizer facilities are secure.” ********************************************************************************************** U.S. Wheat Associates Select New Officer Team The U.S. Wheat Associates Board of Directors chose new officers during their virtual annual meeting on July 17. The new officers for 2020-2021 are Chairman Darren Padget of Oregon, Vice-Chair Rhonda Larson of Minnesota, Secretary-Treasurer Michael Peters of Oklahoma, and Past Chairman Doug Goyings of Ohio. USW officers were elected to those one-year positions during the board of directors’ meeting last January. The USW is the export market development organization representing U.S. wheat farmers. “We are all very disappointed that we couldn’t hold our meeting in Ohio as originally planned,” says Chairman Padget. “We had wanted to publicly thank Chairman Goyings, his family, and the team from the Ohio Small Grains Marketing Board for their dedicated leadership over this past year.” Padget added that Goyings did a wonderful job as chair and that he “hopes to meet his example with his help.” The new USW Chair is a fourth-generation farmer from Oregon, with dryland wheat and a summer fallow rotation currently producing registered and certified seed on 3,400 acres every year. He previously held positions on the Oregon Wheat Growers League board of directors and the executive committee for seven years. ********************************************************************************************** Lamb Board Launches a “Glamburger” Contest The American Lamb Board launched its newest online promotion contest earlier this month, looking to keep up the momentum of getting more consumers to try lamb. They call it the “Glamburger.” The board says it’s a burger that features ground lamb that is “glamorous, fancy, extravagant, and whatever else makes it special for your meal with your friends and family.” This year, the Glamburger contest is expanding to include both at-home and restaurant components. The challenge is encouraging consumers to try out a delicious lamb burger during the summer months. The American Lamb Board is promoting burger recipes, sharing videos of how to craft a delicious lamb burger, and offering a free spice blend for consumers who want to spice up their Glamburger creation at home. South Dakota producer Gwen Kitzan, the ALB Chair, says, “Since kicking off the promotion, we’ve seen many entries and great engagement, with people commenting on their favorite lamb burgers from their local restaurants and their own home-cooked ideas.” The board also launched Project Glamburger, which connects restaurants in target markets with local producers who’ve accepted the challenge to craft a burger that could be featured on their menus. Target markets so far include Denver, Washington, D.C., and San Francisco.
| Rural Advocate News | Friday July 24, 2020 |
Washington Insider: Bipartisan Conservation Legislation Passes Amid tough legislative struggles over virus relief, trade and numerous other issues, the House on Wednesday overwhelmingly passed bipartisan conservation legislation, Bloomberg is reporting this week. The report says that many in Congress and the administration hope the new programs will boost the ailing economy through several shovel-ready outdoor and infrastructure projects. The Great American Outdoors Act would provide full, mandatory funding at $900 million a year for the Land and Water Conservation Fund (LWCF) — making that program “no longer subject to the annual appropriations process.” LWCF pays for federal land acquisition as well as parks, wildlife refuges, ball fields and other projects in local communities across the country. In addition, it would create a new five-year trust fund of up to $9.5 billion from unallocated onshore and offshore energy revenues to address a $20 billion deferred maintenance backlog in America's national parks and public lands. The “deferred maintenance backlog” portion would be split among five land agencies with 70% going to the National Park Service, Bloomberg said. “Combined, these two major programs amount to one of the biggest wins in conservation in decades,” House Natural Resources Committee Chairman Raul Grijalva, D-Ariz., said. President Donald Trump said he will sign the bill, which the Senate passed in June. Previous Trump administration budget proposals recommended gutting LWCF, but two of the program's Republican advocates in the Senate — Cory Gardner of Colorado, and Steve Daines of Montana, face tough re-election campaigns this year, Bloomberg noted, The fund was permanently reauthorized in 2019, but only has received full funding twice since it was created in 1965. Democratic and Republican lawmakers value the program because it supports projects in every congressional district and public lands and outdoor recreation have grown in popularity during the coronavirus pandemic. Many outside groups, from sportsmen to small businesses to environmental organizations, strongly support the bill. Reps. Joe Cunningham, D-S.C., and Mike Simpson, R-Idaho, the lead sponsors of the House bill, said that the legislation would create approximately 100,000 jobs at a time when the country desperately needs them. The bill “takes the next step in our pro-conservation agenda,” said House Speaker Nancy Pelosi, D-Calif., who singled out Cunningham, a freshman and former ocean engineer, for praise. Cunningham also faces a tough re-election campaign. Rep. Nanette Barragan, D-Calif., noted that LWCF is critical to providing access to green spaces and nature in urban areas traditionally cut off from the benefits of outdoor recreation—a point that League of Conservation Voters President Gene Karpinski reiterated. “This victory is a testament to the power of grassroots activists and the enduring popularity of conservation,” Karpinski said in a statement. “But as a recent report from the Center for American Progress and Hispanic Access Foundation shows, there is more work to be done to ensure every community — especially low income and communities of color — has access to public lands, local parks and other outdoor opportunities.” In addition, Rep. Rob Bishop, R-Utah, objected to making LWCF funding mandatory, especially at a time when oil and gas revenues are falling sharply because of the pandemic, according to the Congressional Research Service. LWCF relies on offshore energy revenue. That revenue also funds the Gulf of Mexico Energy Security Act, including the revenue-sharing arrangement between the federal government and the Gulf Coast states that produce most of that energy. After dwindling offshore revenues are divvied up among programs that are mandatory, which would include LWCF under the legislation, there's not likely to be much if any left over for deferred maintenance, Bishop said. Bishop, the top Republican on Natural Resources, is the lead sponsor of the “Restore Our Parks and Public Lands Act,” the deferred maintenance backlog bill in the House that was combined with the LWCF funding measure. While he opposes mandatory funding for LWCF, he supported the permanent authorization of the program that Congress approved in the 2019 public lands package. Not all outside groups were happy with the legislation, Bloomberg emphasizes. “Our national parks are indeed a treasure, but they shouldn't be used as trade bait by Democrats and Republicans who seek to take even more land out of private ownership,” Tom Pyle, president of the American Energy Alliance, said. The federal government manages about 640 million acres of land, most of it in Western states. “As this bipartisan legislation moves forward, it's important for lawmakers on both sides of the aisle to remember that, even during these challenging times, our nation's conservation efforts are made possible by American oil and natural gas,” said Lem Smith, vice president of upstream policy at the American Petroleum Institute. Members from Gulf Coast states like Louisiana—which produces the lion's share of offshore energy revenues — also criticized the legislation's mandatory funding component. They argued that it will siphon away funds that their states receive, which they use for coastal restoration. So, we will see. The new bill appears strongly supported and likely to be signed into law — an unusual bipartisan effort that indicates that the possibility of greater cooperation still exists, at least in a few areas, Washington Insider believes.
| Rural Advocate News | Friday July 24, 2020 |
China's Buys Of US Ag Products Continue To Stack Up For the week ended July 16, USDA's Weekly Export Sales reported more sales of US ag commodities to China. They included for 2019/20, net sales of 7,079 metric tons of corn, 78,645 metric tons of sorghum, 209,872 metric tons of soybeans, but net reductions of 4,401 running bales of upland cotton. For 2020, net sales of 479 metric tons of pork and 7,159 metric tons of beef were reported. For 2020/21, net sales of 127,090 metric tons of wheat, 1.960 million metric tons of corn (mostly known via daily sales announcements last week), 175,000 mt of sorghum, 1.486 mmt of soybeans, and 2,640 running bales of upland cotton. Much of the corn and soybean business for China for the 2020/21 marketing year were known after USDA made daily sales announcements for China last week, including the largest daily sale of corn to China which was the fourth largest daily sale ever made to any destination.
| Rural Advocate News | Friday July 24, 2020 |
USDA Issues Report On Cattle Market, But Signals Investigation Continues USDA issued its report on the cattle and beef market fluctuations in the wake of the fire at the cattle processing plant in Holcomb, Kansas, in August 2019 and the disruptions from the COVID-19 situation. The report lays out what contributed to the record spread between boxed beef and cash cattle prices, but stated the recap “does not examine potential violations of the Packers and Stockyards Act. The investigation into potential violations is ongoing, and therefore, AMS has limited ability to publicly report the full scope and status of the investigation.” The report also stated the exam does “not preclude the possibility that individual entities or groups of entities violated the Packers and Stockyards Act during the aftermath of the Tyson Holcomb fire and the COVID-19 pandemic.” There is also the mention in the report that USDA has “engaged in discussions with the Department of Justice (DOJ) regarding allegations of anticompetitive practices in the meat packing industry. The investigation into potential violations under the Packers and Stockyards Act is continuing.” The report does list several options USDA believes would help the price discovery process in the cattle market, including reducing the level of non-reporting under Livestock Mandatory Reporting, better access to risk management training/education for small and medium-sized cattle producers, and changes to the Packers and Stockyards Act. But USDA did not explicitly back any specific efforts. It is clear that this report will not be the final word relative to the cattle market disruptions that have emerged.
| Rural Advocate News | Friday July 24, 2020 |
Friday Watch List Markets The latest weather forecasts continue to be the first interest for grain traders. A report on June's new U.S. home sales is out at 9 a.m. CDT. USDA releases its July 1 estimate of cattle on-feed and semi-annual cattle inventory report, both at 2 p.m. CDT. Weather Friday will bring stressful heat to the Northern Plains and western Midwest. Some strong and possibly severe thunderstorms may form on the edge of the heat wave in the Northern Plain. Storms are also possible along the Gulf Coast due to influence from tropical storm Hanna.
| Rural Advocate News | Thursday July 23, 2020 |
Senate Seeks $20 Billion for Commodity Credit Corporation Senate negotiations continue on the next coronavirus relief package. While those close to the talks suggest there will not be a bill ready until sometime next month, there is promise for additional relief to agriculture. Senator Joni Ernst, an Iowa Republican who sits on the Senate Agriculture Committee, told Agri-Pulse this week the package will likely include an additional $20 billion in Commodity Credit Corporation funding. That $20 billion would be in addition to the $14 billion already authorized in a previous relief package not yet used by the Department of Agriculture. Meanwhile, in a video addressing the National Association of Farm Broadcasting this week, Agriculture Secretary Sonny Perdue hinted at further aid through the Coronavirus Food Assistance Program. Perdue says USDA is considering adding more commodities to the program and is evaluating what farmers need from future relief. Farm groups continue to plead for additional aid for farmers, including the National Pork Producers Council, which estimates hog farmers face a $5 billion loss from pandemic market implications. ************************************************************************************ USDA Provides Cattle Market Investigation Update The Department of Agriculture Wednesday released a report on its ongoing boxed beef and fed cattle price spread investigation. Agriculture Secretary Sonny Perdue says the closure of the Tyson beef packing plant following a fire at the facility in Holcomb, Kansas, and the COVID-19 pandemic, “clearly disrupted the markets and processing systems responsible for the production and sale of U.S. beef.” The report also discusses several policy considerations in light of the desire by many market participants for improved price discovery, reinvigorated competition, and a more transparent relationship between the prices for live cattle and the resulting products. The report does not examine potential violations of the Packers and Stockyards Act. However, USDA staff have maintained a cooperative relationship with the Department of Justice Antitrust Division staff and have discussed allegations of anticompetitive practices in the meatpacking industry. Should USDA find a violation of the Packers and Stockyards Act, it is authorized to report the violation to DOJ for prosecution. ************************************************************************************ Agriculture Responds to Cattle Market Investigation Update The National Cattlemen’s Beef Association welcomed the investigation update by the Department of Agriculture into cattle markets. NCBA Vice President of Government Affairs, Ethan Lane, says, “this issue has remained a central topic of conversation for NCBA.” The report comes days before NCBA will hold its annual summer meeting. Lane says the association still awaits the results of the Department of Justice’s ongoing investigation into the matter as well. Iowa Republican Senator Chuck Grassley applauded the report, saying, “The cattle market industry is broken.” Grassley says, “Congress has a responsibility to heed the advice of this report and take action to restore cattle price transparency.” The North American Meat Institute, however, notes the report identifies no wrong-doing, and affirms that two extreme and unforeseen events affected beef markets. NAMI President and CEO Julie Anna Potts stated, “It is difficult to see how the USDA’s recommended legislative proposals would have changed the outcome of the fire or the pandemic.” ************************************************************************************ Ernst Bill Provides Tax Break for Essential Workers Legislation introduced the week by Republican Senator Joni Ernst of Iowa would provide tax relief to essential, front line workers. Under Ernst’s FRNT LINE Act, federal income taxes would be suspended for essential workers up to an annual income cap set at the highest level of pay for an enlisted person in the U.S. Armed Forces. Additionally, the bill would provide suspension of federal payroll taxes for essential workers who earn up to $50,000 annually. Under this proposal, tax suspensions will begin on April 1, 2020, and will end on the date the federal emergency declaration is lifted. Senator Ernst says, “These front line workers—our nurses, truck drivers, and grocery store workers, child care providers, and so many others—have kept life going and our supply chains intact.” Several industry groups representing the food supply chain penned a letter in support of the legislation. The Department of Homeland Security considers essential workers as healthcare providers, law enforcement, food and agriculture workers, public works, transportation and communication workers, among others. ************************************************************************************ Farm Progress Launches Virtual Show Two major farm shows are off the calendar for 2020, and to fill the gap, Farm Progress is launching the first-ever Farm Progress Virtual Experience, or FPVX. The event will be powered by Farm Progress Show and Husker Harvest Days and run three days, September 15 to 17. The information available in the free event allows farmers to engage with a range of content. And, searching the exhibitors will be easy because they'll be sorted into the familiar categories farmers have come to know through more than 65 years of taking part in Farm Progress events. The event will kick off with what Farm Progress says may be the most extensive field demonstration the organization has ever created. Matt Jungmann (yung-man) of Farm Progress adds, “We're not asking farmers to just sit by their computers.” All the content will work on smartphones and tablets so that farmers can access the content while mobile. More information will be available as the show date nears. ************************************************************************************ Farm Bureau Foundation Makes Ag Education More Accessible New resources and $17,000 in grants from the American Farm Bureau Foundation for Agriculture provide educators and parents with tools for all types of classrooms. Parents and teachers can use the online resources for in-person, virtual, or at-home learning. Also, announced Wednesday, the foundation is awarding 17,000 to educators and communities through the White-Reinhardt Fund for Education program this fall. Ten classroom and community ag literacy projects across the country will receive $1,000 each to build on their efforts. New this year, the foundation is also awarding resource grants to provide funds for educators to purchase ag literacy resources from the Ag Foundation store. Seventy educators from across the country will each receive a $100 gift card for use at the Ag Foundation’s online store. Foundation Executive Director Daniel Meloy says, “The Ag Foundation is committed to reaching students where they are to help them continue to learn where their food comes from, in the most engaging ways possible.” Find the resources at agfoundation.org.
| Rural Advocate News | Thursday July 23, 2020 |
Washington Insider: New School Nutrition Fight There are political fights over almost everything these days as the Congress and the administration work to iron out another round of subsidies to offset impacts of the coronavirus -- amid the more or less normal budget battles. In one such fight, POLITICO is reporting that “millions of kids could lose access to free meals” if recent practices are ended -- and that efforts are underway to counter that proposed USDA shift. During the spring and summer, as the coronavirus health crisis exploded, the government allowed most families to pick up free meals from whichever school was closest or most convenient without proving they were low-income. But that effort is on the verge of expiring as children prepare to return to school – and many school systems are pushing the federal government to continue the free meals into the future. So far, USDA isn't on board with an extension, POLITICO says, but school leaders are asking Congress “to force the government's hand as it buckles down to work on the next coronavirus aid package.” “It's impossible. It's insane,” said Katie Wilson, executive director of the Urban School Food Alliance, which represents the largest school districts in the country, including those in New York, Chicago and Dallas. “Our districts have been screaming about it. They're panicked.” If USDA doesn't extend the program's flexibility through the fall, families may be able to get food for their children only from the school where they are enrolled, after being deemed eligible for help -- a change that could create logistical barriers for many families, particularly those without cars or with parents working multiple jobs. USDA says it is working with lawmakers as they develop the next coronavirus relief package. “This is [uncharted] territory, but we remain committed to ensure all children have food to eat throughout this pandemic,” the spokesperson said. The department has already extended several waivers that make it easier to feed kids this school year, including loosening rules on nutrition and restrictions on who can pick up the meals -- but have “drawn a line” at requests to continue waiving eligibility rules. Federal school nutrition programs often have been political targets, with disparate interests disagreeing about everything from fruit and vegetable servings to how much salt can be in pizza. But free meals have found broad backing, at least during the recent pandemic. “This is still an emergency and we need to treat it that way,” said Diane Pratt-Heavner, a spokesperson for the School Nutrition Association, a group representing more than 50,000 local leaders who run school meal programs across the country. The group has activated its vast network of local school officials to send nearly 20,000 emails to lawmakers asking them to pressure USDA to approve the remaining waivers for the rest of the school year. A spending bill on the House side includes language urging USDA to act. There's also a letter circulating in the Senate pressing the issue. Most school cafeteria programs already face much higher food, labor, transportation and packaging costs, as they have been essentially operating emergency meals programs for months. Nutrition providers had to come up with creative ways to still feed their students with schools shut down. Most districts are now operating some form of meal pickups, and some are even dropping meals off at students' homes on a regular basis. It's unclear how many students who have been getting help under the waived eligibility rules might get cut off if traditional rules go back into effect. “We're going to be going from a situation where we were just providing meals to all kids, no questions asked … to having to track by student name and status, so that you can charge families if they don't qualify by submitting a free and reduced meal application,” said Rosie Krueger, Vermont's director of child nutrition programs. In 2018, the National School Lunch Program, which serves a mix of free, subsidized and paid meals to nearly 30 million children, cost just under $14 billion. An estimated 51 million children are projected to enroll in public elementary and high schools this fall. Some high-poverty school districts already serve universal free meals under what's called the Community Eligibility Provision, something that's available to schools if a certain percentage of their students already qualify for help. About 30 percent of schoolchildren were in schools with universal free meals in the 2019 school year. Jessica Shelly, director of student dining services for Cincinnati Public Schools, said she wants to see USDA aggressively press for free meals this year. She recalled meeting USDA Secretary Sonny Perdue at a school nutrition conference years ago. “I remember him saying to all of us, to do right and feed everyone,” she said. “I am just really hoping that USDA recognizes that the motto needs to be embraced not just by us … but also by them. If they want us to do right and feed everyone, then they need to help us do that.” So, we will see. These nutrition programs are important to many participants, and will be badly missed if they are not continued – but, they are expensive and highly visible to opponents. Efforts to continue them likely will be highly controversial and should be watched closely by producers as they intensify, Washington Insider believes.
| Rural Advocate News | Thursday July 23, 2020 |
House Ag Panel Hearing Reveals Democrats' Concerns On USDA Food Box Program A House Ag subcommittee hearing Tuesday brought out what was expected – Democrats have concerns about how USDA rolled the aid program out. Rep. Marcia Fudge, D-Ohio, chair of the House Agriculture Subcommittee on Nutrition, Oversight, and Department Operations, blasted USDA's operation of the Farmers to Families Food Box program. “Because USDA has rushed this program out the door, there is very little quality control with regard to who gets these contracts and who is qualified to actually meet the need,” Fudge said. “Tens of millions of dollars have gone to inexperienced contractors that still haven't delivered anywhere near what they've promised. As one food bank executive explained, if USDA had gone through established and capable channels, this problem could have been avoided. This is a humanitarian effort, not a gravy train.” Fudge related that her panel heard from food bank experts on the ground that “USDA's lack of planning and strategy on the program has led to inexplicable decisions and policies with regard to how funds are distributed, the regions into which the country is divided in terms of food distribution, and other problems. Despite these issues, USDA has refused, to date, to provide any insight or background on how these decisions are being made, and what quality control, if any, exists to correct them if they're wrong.” USDA Undersecretary for Marketing and Regulatory Programs Greg Ibach noted that in April “in just a few short weeks, USDA stood up [the program] as a new and innovative multi-billion-dollar COVID response program to address three critical needs simultaneously: to provide markets for farmers faced with declining demand and the crisis of food rotting in fields and animals being euthanized; the food needs of newly unemployed Americans; and helping put suppliers and distributors back to work.” Ibach acknowledged the program does not have the same standards as regular USDA food distribution programs, but said that was because it was supposed to be put in operation so quickly.
| Rural Advocate News | Thursday July 23, 2020 |
China Buys of US Ag Goods To Rise 'Rapidly' This Fall: USTR Nominee China's purchases of U.S. ag products is expected to pick up steam this fall, according to Michael Nemelka, nominee to be a deputy U.S. Trade Representative (USTR). “We have the Phase One agreement, which also just entered into force a few months ago,” Nemelka told the Senate Finance Committee in his nomination hearing. “In that remarkable agreement, USTR achieved many long-held goals, including a commitment from China to fully respect intellectual property rights, end forced technology transfer, and increase purchases of U.S. goods and products, among many other things.” A key is making sure that China meets its commitments, he noted in prepared remarks, “and we have an agreement that is in writing, and is fully enforceable, to make sure they do.” On making sure that China will live up to its purchase commitments, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, asked Nemelka to address how USTR is working to make sure that China meets those commitments. Officials at USTR are working “every day to make sure that China lives up to its commitments,” Nemelka said. “We have our ambassador Gregg Doud on the phone nearly every day” with his counterparts in China. In the fall, he added, the expectation is that “with these seasonal products and soybeans in particular that are currently in the ground, we expect to see those purchases rapidly increase.” Nemelka's view matches that of USTR Robert Lighthizer and other U.S. trade officials who have indicated their China purchases will increase and that China remains committed to meeting the terms of the deal.
| Rural Advocate News | Thursday July 23, 2020 |
Thursday Watch List Markets Thursday morning starts with weekly export sales, U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CDT. A report on U.S. leading indicators is out at 9 a.m. CDT, followed by natural gas inventory at 9:30 a.m. Of course, the latest weather forecasts will also be closely watched. Weather Thursday features rain showers with light to locally moderate totals in the eastern Midwest and southeastern Plains. We'll also see scattered activity in the western Midwest and northern Plains. Conditions will be very warm as a heat wave begins for the end of the week.
| Rural Advocate News | Wednesday July 22, 2020 |
USDA finds no wrongdoing in cattle market report Investigation released into Holcomb plant fire and COVID-19 impact on beef price spreads. The U.S. Department of Agriculture released its long-awaited report on the impact of the 2019 fire at Tyson Foods’ Holcomb, Kan., beef plant and impact of the COVID-19 pandemic on beef price margins. The report failed to identify wrongdoing by market participants but did offer suggestions on how to improve transparency in the market and create additional opportunities for small and local processors. In the weeks and months after both events, the difference – or spread – between the Choice boxed beef cutout values and dressed fed cattle prices rose to records levels. “Findings thus far do not preclude the possibility that individual entities or groups of entities violated the Packers & Stockyards Act during the aftermath of the Tyson Holcomb fire and the COVID-19 pandemic. The investigation into potential violations under the Packers & Stockyards Act is continuing,” the report stated. However, the North American Meat Institute (NAMI) pointed out that the report found no wrongdoing. “In its analysis of the effects of the fire and the pandemic, USDA found no wrongdoing and confirms the disruption in the beef markets was due to devastating and unprecedented events,” NAMI president and chief executive officer Julie Anna Potts said. As it relates to the COVID-19 impact, the report said boxed beef cutout values increased and fed cattle prices were volatile in March as packers operated near full capacity. From the middle of March to early April, the spread between boxed beef values and fed cattle prices increased from $34/cwt. to $66/cwt. The spread had averaged just under $21/cwt. for 2016-18. During April and May, there were significant beef supply disruptions as large numbers of plant workers contracted COVID-19. Plant closures and slowdowns negatively affected beef production and packer demand for fed cattle. This reduced demand for cattle may have contributed to lower fed cattle prices. An additional surge in consumer retail demand occurred in April, when consumers appeared to react to the possibility of beef shortages in grocery stores. “The supply disruptions and additional surge in demand may have contributed to a sharp increase in beef values,” the report said. “At the same time, packers purchased fewer cattle as plant closures and slowdowns increased.” From early April until the second week of May, the spread grew from $66/cwt. to over $279/cwt. -- a 323% increase. Regarding the Holcomb plant, USDA noted that the timing of the fire in early August coincided with the seasonal increase in boxed beef demand leading up to the Labor Day weekend. Typically, many retailers make pricing and promotional decisions several weeks in advance of the Labor Day holiday. Futures prices for fed cattle decreased significantly in the days immediately after the fire. Fed cattle markets then followed with price decreases. Shortly after the fire, packers increased their processing volume primarily through the addition of Saturday slaughter shifts. There was a marked drop in the number and percentage of negotiated cash sales of fed cattle immediately after the fire. The plant closure appeared to affect the spread between boxed beef values and fed cattle prices, USDA noted in the report. The spread between the two peaked at a then-record high of $67.17/cwt. the week ending Aug. 24, while the average for the same week during 2016-18 was $27.66/cwt. -- a difference of $39.51, or 143%. Rep. Dusty Johnson (R., S.D.) said in a media call just an hour after the report was released that he is disappointed that the report did not offer a final statement on any potential market conduct violations. “After a year of looking, I expected USDA to say there was misconduct or was not. If there wasn’t misconduct, it adds more fuel to the notion that the marketplace is broken in other ways,” Johnson said. USDA suggestions Both the Holcomb fire and COVID-19 impact directed increased attention to the ongoing concentration in the beef marketplace, which is nearly 80%. USDA’s report noted that at the core of several discussions is the desire by many market participants for improved price discovery, reinvigorated competition and a more transparent relationship between the prices for live cattle and the resulting products. USDA offered several suggestions for improving the market, including adding capacity at smaller processors, allowing these smaller processors to sell across state lines and finding ways to add more capacity for smaller processors. “Smaller producers often find themselves to be price takers in the market for fed cattle and lack the volume of larger producers to negotiate unique and advantageous marketing agreements with large meat packers,” USDA noted. In efforts to address this imbalance, there has been discussion of creating a beef contract library similar to the swine contract library USDA currently maintains pursuant to Section 222 of the Packers & Stockyards Act. Amending the Packers & Stockyards Act to develop a similar library for beef transactions could help increase price discovery in cattle markets and enhance access to market information for all market participants, regardless of size, the report stated. The report noted that the Agricultural Marketing Service (AMS) has also explored a 14-day slaughter scheduled delivery submission requirement through Livestock Mandatory Reporting (LMR), a precedent currently in place for daily LMR swine reporting. A change in the LMR cattle submission form would be required to allow for the capture of the slaughter schedule. Under this scenario, beef packers could report daily the number of cattle scheduled to be delivered for slaughter each day for the next 14 calendar days. “In light of steadily decreasing percentages of negotiated sales and continued market volatility, USDA is also aware of a variety of proposals by external stakeholders that would require packers to meet a minimum threshold of purchases via negotiated cash trade. Likewise, USDA is aware of the variety of concerns with these proposals and potential unintended consequences throughout the industry, especially if regional considerations are not adequately considered,” the report said. USDA noted that such regional disparities might be addressed, in part, by tying the minimum purchase thresholds to regional reporting abilities. Under this approach, if an LMR region began to fail to meet confidentiality guidelines due to packers not procuring cattle on a negotiated cash basis, with the proper legislative authority, AMS could track and inform packers of the requirement to make an additional percentage of such purchases in the following week to allow for reporting. The LMR expires Sept. 30, and Johnson didn’t rule out the possibility that some of the legislative proposals supported by USDA in the report could be included, but it would take a “ton of work on our part to make that happen.” He did say he hopes that it adds momentum to many of the legislative proposals on the table to increase market transparency and price discovery. However, Potts stated, “It is difficult to see how the USDA’s recommended legislative proposals would have changed the outcome of the fire or the pandemic.” The National Cattlemen’s Beef Assn. (NCBA), which initially requested the investigation, said the information in the report will be very helpful and timely to the cattle industry’s robust discussion of cattle markets and price discovery during its Summer Business Meeting next week in Denver, Colo. USDA does not solely own investigatory authority over anticompetitive practices in the meat packing industry and has been engaged in discussions with the U.S. Department of Justice regarding allegations of anticompetitive practices in the meat packing industry, the report noted. Should USDA find a violation of the Packers & Stockyards Act, it is authorized to report the violation to DOJ for prosecution. NCBA vice president, government affairs, Ethan Lane said NCBA is also collectively still awaiting the results of the DOJ investigation.
| Rural Advocate News | Wednesday July 22, 2020 |
Report: 27 Countries Headed for COVID-19 Food Crisis A new analysis identifies 27 countries that are on the frontline of impending COVID-19-driven food crises, as the pandemic's effects aggravate pre-existing drivers of hunger. The UN Food and Agriculture Organization and World Food Program report that no world region is immune. The joint analysis by FAO and WFP warns these "hotspot countries" are at high risk of, and in some cases are already seeing, significant food security deteriorations in the coming months, including rising numbers of people pushed into hunger. These countries were already grappling with high levels of food insecurity and hunger even before COVID-19, due to pre-existing shocks and stressors such as economic crises, instability and insecurity, climate extremes, and plant pests and animal diseases. The report says the pandemic may contribute to political instability as well as fueling conflict. In a bid to counter these trends, FAO released a revised appeal for $428.5 million under the UN system's Global Humanitarian Response Plan for COVID-19. The funds address the mounting needs in the food and agriculture sector. ************************************************************************************ BASF, Corteva, Seek Rehearing of Dicamba Decision BASF and Corteva both filed motions to request a rehearing on a court decision that vacated registrations for dicamba herbicides. U.S. Court of Appeals for the Ninth Circuit last month vacated the registrations for three dicamba herbicides, including BASF’s Enginia, Corteva’s FeXapan and Bayer’s Xtend. Specifically, BASF’s petition requests a review of the decision by a panel of 11 judges from the Ninth Circuit instead of the three-judge panel that issued the previous decision. This request for "en banc" review, according to BASF, “is necessary to correct errors by the panel in issuing a decision inconsistent with basic due process and administrative law principles.” BASF says the panel's decision undermined the EPA's authority to make science- and data-based regulatory decisions to determine which herbicide products are safe and effective to meet the challenges farmers face. Further, the company says the decision “was unprecedented and devastating to tens of thousands of farmers” who rely on dicamba. ************************************************************************************ USDA Announces Funding to Support Socially Disadvantaged and Veteran Farmers The Department of Agriculture Tuesday announced approximately $15 million to help socially disadvantaged and veteran farmers own and operate successful farms. Funding is made through USDA’s Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers and Veteran Farmers and Ranchers Program, also known as the 2501 Program. The program is administered by the USDA Office of Partnerships and Public Engagement. For 30 years, the 2501 Program has helped reach socially disadvantaged farmers and ranchers who have experienced barriers to service due to racial or ethnic prejudice. The 2014 farm bill expanded the program to veteran farmers and ranchers. The 2018 farm bill increased mandatory funding for the program through fiscal year 2023. With 2501 program grants, nonprofits, institutions of higher education and Indian Tribes can support socially disadvantaged and veteran farmers and ranchers through education, training, farming demonstrations, and conferences on farming and agri-business, and by increasing access to USDA’s programs and services. ************************************************************************************ Telehealth Expansion Legislation Introduced in U.S. Senate New legislation introduced this week would expand access to telehealth options for rural residents. The KEEP Telehealth Options Act would require the federal government to study the actions taken to expand access to telehealth services during the COVID-19 pandemic and report on how to improve those services. The bill was introduced by Senator Deb Fischer, a Nebraska Republican, and Senator Jacky Rosen, A Nevada Democrat. Fischer says expanded telehealth services “have allowed millions of Americans to access the medical care they need during this pandemic, especially those in rural communities.” The legislation would require the Secretary of Health and Human Services to study and produce a public report on the actions taken to expand access to telehealth services during the COVID-19 pandemic. Additionally, the legislation would require the Government Accountability Office to report to Congress on the efficiencies, management, successes and failures of the expansion of telehealth services. The studies could then be used by Congress to support and inform long-term flexibilities for telehealth. ************************************************************************************ Iowa Ag Department Extends Animal Disposal Assistance The Iowa Department of Agriculture has extended a program to help pork and poultry producers forced to euthanize animals. The Iowa Disposal Assistance Program provides funds for producers forced to euthanize and dispose of market-ready and weaned pigs or layer hens because of supply chain disruptions caused by COVID-19. This is the fourth round of funding in the program. Iowa is the largest producer of pork and egg products in the United States. Iowa Ag Secretary Mike Naig says, “The disposal assistance program is just one way the state is trying to help producers through this very difficult time." Iowa's pork producers have made difficult decisions over the past several months as COVID-19-related worker shortages caused meat processing facilities to reduce production. Meanwhile, Iowa's egg producers have also faced distribution and disposal challenges because of COVID-19-related closures. Iowa is home to over 58 million egg-laying hens. Nearly 70 percent of Iowa's layer flocks produce for the liquid egg market and are destined for restaurants, schools and other foodservice markets. ************************************************************************************ Farmers Business Network Acquires Australia’s Farmsave Farmers Business Network has acquired Farmsave, an online agricultural inputs platform that provides real-time input pricing transparency and services to thousands of independent Australian farmers. Much like FBN, Farmsave gives farmers across Australia access to competitive prices on key farm chemicals from a range of suppliers and arranges delivery of goods directly to local depots and farms. Currently serving over 5,000 Australian farms, Farmsave boosts farmers' bargaining power and drives down input costs. FBN expects to announce a range of new offerings to Farmsave's existing members and all Australian farmers in the months ahead. A recent spate of consolidation among global chemical manufacturers and national retailers has resulted in dwindling choice for farmers across Australia. FBN says that with limited independent information sources for chemical prices or trends, farmers have been unable to purchase inputs with confidence. Farmer's Business Network is an independent farmer-to-farmer network, built by and for over 11,500 farmers in North America. Terms of the acquisition were not disclosed.
| Rural Advocate News | Wednesday July 22, 2020 |
Washington Insider: Push From Ag for Financial Support Roll Call is reporting this week that the National Pork Producers Council plans to campaign for a change in federal law that would authorize USDA to pay livestock and poultry farmers for healthy animals they euthanized because of the COVID-19 pandemic. The trade association said Monday that it wants the provisions included in the Senate version of the next economic recovery bill with a goal of getting the language into a compromise version worked out between the Senate and the House by early August. The council's request for aid is just one item on a wish list from agriculture for direct payments to farmers and ranchers to cover lost renewable fuel revenue as well as the “collapse in the demand for cotton, aid to meat processing plants to ensure production lines keep moving, and other items.” Advocates for renewable fuels, pork and cotton relief put the COVID-19 damage at about $17.8 billion, a sum that includes at least some estimates of continuing cost in 2021, Roll Call said. Farm and agriculture-related groups say the pandemic, coming after several years of flat or low prices and two years of retaliatory tariffs from trading partners, has left them battered. Congress provided $9.5 billion in appropriated funds and $14 billion in borrowing authority for the Commodity Credit Corporation in March legislation. The USDA has set aside $16 billion for direct payments to farmers and ranchers and is spending $3 billion on a program for food distributors to buy meat, produce and dairy products. The hog group said it backs legislation by Sen. James Inhofe, R-Okla., to give the department's Commodity Credit Corp. emergency authority to reimburse farmers whose cattle, hogs or poultry suddenly become surplus “due to significant supply chain interruption during an emergency period.” That bill also would cover donations of meat to noncommercial interests, and ag processing plants could receive aid to ensure that meat and poultry lines keep moving during a national emergency. In addition, it would authorize $300 million for the Animal and Plant Health Inspection Service to address the COVID-19 issues. The Renewable Fuels Association released a July report that the industry lost $3.4 billion in revenue from March through June because of COVID-19 economic disruptions that reduced driving and demand for transportation fuels. The association projected that losses could reach $7 billion in 2020 and $1.8 billion in 2021. Ethanol's losses also reflect a blow to corn farmers who sell approximately 40% of U.S. crops for fuel production. The association study said the industry used 500 million fewer bushels of corn during the March through June period. Cotton farmers, textile mills and the cotton merchandising sector also are looking for relief aid in the next economic recovery legislation, Roll Call said. Sens. Thom Tillis, R-N.C., and Mark Warner, D-Va., wrote to Senate Majority Leader Mitch McConnell, R-Ky., and Minority Leader Charles Schumer, D-N.Y. Their request was joined by senators from cotton-growing states last week asking that the “cotton supply chain” receive financial help. Tillis and Warner said COVID-19 kept people at home and depressed demand for cotton up and down the supply line. “Given the precipitous decline in retail demand, the loss of textile production and lower cotton prices that are expected to persist into 2021, the economic damage to the U.S. cotton industry is currently estimated to be at least $4.0 billion,” the letter said. “We need help now to weather this unprecedented crisis,” National Pork Producers Council President Howard Roth said. The Council earlier estimated that hog farmers euthanized an estimated 300,000 to 400,000 market-ready animals in the spring and another million young pigs may have been killed on farms because several slaughter plants closed temporarily as workers became ill with COVID-19 or tested positive for the virus. The closures meant farmers were limited in their ability to market animals for slaughter. Steve Meyer, an economist with Kerns & Associates, who joined the council's officers and staff on a press call, said conditions have improved with the reopening of plants--but that the pace of processing remains slower because the facilities have spaced workers to meet social distancing requirements. Meyer said about 2 million hogs are still waiting on farms to be moved to processing plants. Demand for pork is strong at the retail level, he said, and the food service market appears to be regaining ground as states reopened restaurants for sit-down service. However, Meyer said multistate surges in COVID-19 cases threaten to undo the progress. So, we will see. Certainly, U.S. ag producers are widely believed to be on the front lines in the global trade fights – and they represent an important component of political support that may be increasingly up for grabs in the fall elections. However, the ag requests are large and face competition from many groups that also have important needs – as well as opposition from budget hawks. As a result, the ag requests likely will be quite controversial this year and certainly should be watched closely by producers as they are debated, Washington Insider believes.
| Rural Advocate News | Wednesday July 22, 2020 |
Rural Electric Cooperatives Seeking Provision in COVID Aid Plan Rural electric cooperatives want Congress to include a provision in the COVID-19 aid plan that would end a prepayment penalty on their Rural Utility Service loans. National Rural Electric Cooperatives CEO Jim Matheson said in a call to reporters that members are urging Congress to include a bill that would allow co-ops that have borrowed money from the Treasury Department to get a reduced interest rate without paying a prepayment penalty. Matheson said the Flexible Financing for Rural America Act has been introduced in the House by Reps. Tom O'Halleran, D-Ariz., and Vicky Hartzler, R-Mo., and in the Senate by Senate Agriculture Appropriations Subcommittee Chairman John Hoeven, R-N.D., and Sens. John Boozman, R-Ark., Tina Smith, D-Minn., and Kyrsten Sinema, D-Ariz. Cooperatives have experienced a loss of income due to businesses closing or operating at a lower level during the pandemic and the lower interest rates would make it easier for them to continue to provide service and also rebuild infrastructure.
| Rural Advocate News | Wednesday July 22, 2020 |
CFAP Payments Clear $6.2 Billion USDA has paid out $6.23 billion under the Coronavirus Food Assistance Program (CFAP) on 442,639 approved applications as of July 20. Livestock producers remain the largest recipients, with $3.15 billion in payments. That is broken down as $2.73 billion to cattle producers, $394.3 million to hog producers and $28.8 million to sheep producers. Dairy producers have received $1.25 billion. Non-specialty crop producers have received $1.64 billion, with $1.1 billion to corn producers, $314 million to soybean producers, $155 million to upland cotton growers, $19 million to HRS wheat producers, and $13.3 million to sorghum growers. Payments totaling $186 million have gone out to specialty crop producers. Growers in seven states have received $300 million or more, including Iowa at $652.1 million, Nebraska at $460.1 million, Minnesota at $399.7 million, Wisconsin at $374.1 million, and Texas at $331.7 million, California at $325.1 million, and South Dakota at $316.7 million.
| Rural Advocate News | Wednesday July 22, 2020 |
Wednesday Watch List Markets As typical through summer, the latest weather forecasts will get the first look from grain traders, along with any trade news. A report on June U.S. existing home sales is due out at 9 a.m. CDT. With ethanol production slowly returning toward pre-coronavirus levels, the U.S. Energy Department's weekly report of energy inventories will be watched at 9:30 a.m. CDT Wednesday. Weather Showers with light to moderate rain totals are in store for the eastern Midwest, Delta, Mid-South, and portions of the central Plains Wednesday. Other primary crop areas will be dry. Temperatures will be seasonal to below normal over the Midwest and very warm to hot elsewhere. Most row crop areas have favorable conditions for corn pollination and soybean flowering and pod setting.
| Rural Advocate News | Tuesday July 21, 2020 |
Hog Farmers Face Near $5 Billion Loss An analysis by economist Steve Meyer for the National Pork Producers Council shows an estimated two million hogs still backed-up on farms. According to his report, based on lean hog futures prices on March 1 and July 10 and actual hog prices in the interim, potential 2020 revenue from hog sales has been reduced by roughly $4.7 billion. Other losses associated with euthanasia, disposal and donation of pigs with no market outlet and insufficient space to hold them mean U.S. pork producers have lost nearly $5 billion this year. Meyer says it appears those losses will continue into 2021. “This is, by far, the worst financial disaster ever for American hog farmers,” according to Meyer. NPPC President Howard AV Roth says, “Many U.S. hog farmers will not survive this crisis.” NPPC is calling on Congress to pass the RELIEF for Producers Act, which provides compensation for farmers who are forced to euthanize or donate animals that can’t be processed into the food supply as a result of COVID-19, among other provisions. ************************************************************************************ USDA Announces Livestock Gross Margin Insurance Program Changes The Department of Agriculture Monday announced changes to the Livestock Gross Margin insurance program for cattle and swine starting in 2021. Changes include adding premium subsidies to assist producers and moving premium due dates to the end of the endorsement period for cattle. USDA Risk Management Agency Administrator Martin Barbre says the changes “build upon RMA’s continued effort to make livestock policies more affordable and accessible for livestock producers.” Barbre says the agency is working to ensure the changes can be implemented by the July 31 sales period. Before this change, LGM-Cattle and Swine did not have premium subsidies. Now, subsidies have been added and are based on the deductible selected by the producer. The subsidy will range from 18 percent with zero deductible up to 50 percent with a deductible of $70 or greater for LGM-Cattle. For LGM-Swine, the subsidy will range from 18 percent with zero deductible up to 50 percent with a deductible of $12 or greater. ************************************************************************************ USDA, USTR, to Hold Hearings with Seasonal Growers Next Month The Trump administration will hold two hearings next month with seasonal produce growers to discuss foreign trade policies that may be harming farmers. The U.S. Trade Representative’s office, along with the Department of Agriculture, recently announced the hearings planned for August 13 and August 20. At the hearings, officials from the federal agencies will hear from farmers on how the Trump administration can support them and remedy any unfair harm. The hearings, which were originally scheduled to occur in Florida and Georgia in April, will take place virtually. This month, Florida lawmakers called on U.S. Trade Representative Robert Lighthizer to stop "unfair Mexican trade practices harming seasonal and perishable produce growers in Florida and the Southeast." U.S. Representative Greg Steube, a Florida Republican, says many growers were forced to plow their crops under as a result of decreased demand from the COVID-19 pandemic. At the same time, "the Mexican produce industry continued to increase its US market share by 17 percent between January and April 2020." ************************************************************************************ Soy Checkoff Makes Research Accessible to Industry The United Soybean Board and state soybean boards are bringing research results to farmers. The redesigned Soybean Research & Information Network website, soybeanresearchinfo.com, was launched through a joint effort by the North Central Soybean Research Program and the United Soybean Board. The website gives farmers a virtual resource full of information and toolkits for more efficient soybean production. USB describes the site as a one-stop-shop for all the information the checkoff has discovered through farmer investments regarding key problem areas in production. Each article on the website provides insight and explanation on the research findings and links directly to the study in the overall database for further exploration. Tim Venverloh, USB Vice President of Sustainability Strategy, says the soy checkoff and state organizations “have worked together to find solutions, best practices and data on key issues and have made that available for all farmers to use.” Some of the research projects include battling pests, navigating herbicide-resistant weeds, enhancing seed quality and controlling seed and seedling rots. ************************************************************************************ Cargill, NCBA Foundation, Partner to Support Beef Industry A new partnership between the National Cattlemen's Foundation and Cargill will provide cattle producers tools to manage their operations. Specifically. The partnership offers cattle producers practical tools to help manage market shifts, reduce costs, manage finite natural resource availability and withstand extreme weather events. The four-year strategic partnership, which was funded by a $3 million contribution from Cargill's protein business, establishes a professional development scholarship program, and provides educational resources through the U.S. Roundtable for Sustainable Beef, and experiential learning in partnership with the National Cattlemen's Beef Association. The Rancher Resilience Grant program, which serves as the program's professional development scholarship arm, offsets expenses for farmers and ranchers to attend state, regional, national, and global educational events. This includes industry conferences, seminars, and certifications addressing animal health and well-being, profitability, natural resources, sustainability, genetics, and reproduction education. The Rancher Resilience Grant program will launch this fall. The development of educational resources and promotion will begin immediately. ************************************************************************************ Elanco Receives Approval for Bayer Animal Health Acquisition Elanco Animal Health Incorporated has received unanimous approval from the U.S. Federal Trade Commission for its acquisition of Bayer Animal Health, a division of Bayer AG. The FTC decision represents the final antitrust clearance needed to complete the transaction, which continues on track for closing at the beginning of August. Elanco CEO Jeff Simmons says the approval "marks the near-final step in fulfilling our vision of bringing together two dedicated animal health companies." Elanco continues to expect necessary worldwide divestitures in the previously announced range of $120 million to $140 million of annual revenue to advance regulatory reviews. The FTC's approval is conditional on three product divestitures, including StandGuard, a pour-on treatment for horn fly and lice control in beef cattle, being sold to Neogen Corporation. In addition to FTC approval, Elanco has received antitrust clearance for the transaction from the European Commission, as well as in ten other countries.
| Rural Advocate News | Tuesday July 21, 2020 |
Washington Insider: New Wave of Deficit Borrowing and New Rules for Renewables A new wave of deficit borrowing is headed for the municipal-bond market to close gaping budget holes caused by the coronavirus shutdowns, Bloomberg is reporting this week. The report noted that New Jersey lawmakers agreed last week to borrow $10 billion to finance half of the state's estimated budget gap, while Illinois plans to sell as much as $5 billion in notes to a municipal facility set up by the Federal Reserve. New York state authorized $11 billion in short-term borrowing that may be refinanced on a long-term basis, if necessary, and New York City is seeking the legislature's approval to borrow $5 billion. “It's pretty simple math,” said Patrick Brett, the head of Citigroup Inc.'s municipal debt capital markets business. “Hundreds of billions of dollars of deficits opened up really quickly. They're all not going to get plugged with cuts, they're all not going to get plugged with tax increases.” Unlike the federal government, U.S. states are required to balance their budgets, though they frequently rely on short-term loans. Those deficits are poised to swell now as coronavirus lock-downs hold back sales and income-tax revenue -- and as costs rise for healthcare, unemployment assistance and social services. Municipalities will need at least $500 billion in additional federal aid over the next two years to avoid inflicting a major blow to the economy, according to Moody's Analytics. When the economy slows, states typically terminate or furlough employees, put off public-works projects or borrow before raising taxes. Since the coronavirus pandemic hit the U.S., states and local governments have cut nearly 1.5 million jobs, far more than were eliminated after the last recession. The size of the borrowing wave will depend on how much aid comes from Washington, the report says. Republicans and Democrats are negotiating to pass another round of economic relief during the last week of July. Democrats in the House approved a $3 trillion measure that included about $1 trillion for state and local governments. Republicans have set a $1 trillion ceiling on another stimulus. Barclays Plc municipal strategists estimate states and local governments will get $200 billion to $500 billion. While most states began the fiscal year on July 1 with full-year budgets in place, coronavirus infections have accelerated in Florida, Texas, California and Arizona since mid-June, prompting renewed lockdowns in some cases and weighing on an economic recovery. Uncertainty over tax collections and spending on government services means states will likely need to meet in special sessions to revise their budgets, according to Municipal Market Analytics. While borrowing to fund operations is a negative sign to bond-rating analysts and investors, they may be more forgiving with states and local governments facing the biggest fiscal crisis since the Great Depression. “People are viewing this as a one-in-a-century kind of event,” Citigroup's Brett said. “Even many of those who would generally oppose deficit borrowing are saying this is an act of God, and we should borrow.” In something of a side note, Bloomberg also reporting that in a controversial move, a landmark 40-year-old law that's been key to the growth of renewable energy in the U.S. is being effectively overhauled, threatening to curb demand for solar projects. Federal regulators recently proposed new limits on which energy projects fall under the Public Utility Regulatory Policies Act, which had helped spur an entire generation of solar and wind farms across the country. More than 30% of solar facilities online today benefit from the law, according to Bloomberg. “The proposed changes may alter prospects for future investment.” The overhaul highlights how far renewables have come since 1978, when the law was enacted to boost competition within the power sector and encourage new technologies. Wind and solar costs have declined precipitously and renewables now make up about 20% of U.S. energy generation. “Most of the renewable energy projects developed these days are done outside of the Utilities Regulatory Act” said Federal Energy Regulatory Commission Chairman Neil Chatterjee, who sees that fact as proof that renewables can compete in our markets. He does not expect that to change. Current regulations mandate that if a developer can build a project for less than a utility can, the developer can request a contract to sell power to that utility. Under the changes proposed last week by the energy commission, utilities are only obligated to buy power from facilities that are 5 megawatts or smaller. Formerly, the limit was 20 megawatts. That means solar arrays between 5 and 20 megawatts “will no longer have unfettered access to utilities that they've had for over 40 years,” said BNEF power analyst Brianna Lazerwitz. While current contracts wouldn't be affected, the projects could face uncertainty once those contracts expire. The new rules will “stifle competition, allowing utilities to strengthen their monopolies and raise costs for customers,” Washington-based Solar Energy Industries Association said. “We will continue advocating for reforms that strengthen the Act and allow solar to compete nationwide.” So, we will see. Certainly, pressure on states and municipalities to offset the virus' impacts will be debated hotly, as will any new rules for solar and wind farms – so, this fall's economic policy debates will be extremely important and producers should watch closely policies and rules emerge, Washington Insider believes.
| Rural Advocate News | Tuesday July 21, 2020 |
US Begins Countervailing Duty Probe of Fertilizers The U.S. will conduct investigations into fertilizer imports to determine whether producers of phosphate fertilizers in Morocco and Russia are receiving unfair subsidies, according to a Commerce Department statement. Morocco and Russia both have eight alleged subsidy programs. The investigations are based on petitions by The Mosaic Company. In 2019, imports of the fertilizer from Morocco were valued at $729.4 million; imports of fertilizer from Russia were valued at $299.4 million. The International Trade Commission will make preliminary determinations by August 10; final determinations are scheduled for December 7.
| Rural Advocate News | Tuesday July 21, 2020 |
Seasonal Produce Public Hearings Set For August The hearings on imports of seasonal produce into the U.S. by the Office of the U.S. Trade Representative (USTR), USDA and Department of Commerce will now be virtual hearings set for August 13 and 20, according to a notice to be published in the Federal Register. USTR said they are seeking public feedback on “trade distorting policies that may be contributing to unfair pricing in the U.S. market and causing harm to U.S. seasonal and perishable producers in U.S. commerce,” and on “how the administration can better support these producers and redress unfair harm.” Those seeking to offer comments have to make their request by July 27. The hearings had been scheduled earlier this year but were postponed due to the COVID-19 situation.
| Rural Advocate News | Tuesday July 21, 2020 |
Tuesday Watch List Markets Tuesday has no official reports on the docket, but we can be sure the latest weather forecasts will get a close look, especially pertaining to row crop development. Any trade news that emerges will also get attention as will the latest items of progress related to the status of coronavirus in the U.S. Traders will also consider the latest ratings in Monday's Crop Progress report. Weather Tuesday features moderate to heavy rain in the western Midwest and light to moderate rain in the eastern Midwest. Pollinating corn and flowering soybeans will benefit from this moisture. Temperatures will be seasonally warm north and central and hot south.
| Rural Advocate News | Monday July 20, 2020 |
Study Confirms Value of Red Meat Exports to U.S. Corn, Soybeans The U.S. Meat Export Federation released an updated version of an independent study aimed at quantifying the value that red meat exports provide U.S. corn and soybean farmers. The independent study was conducted by a company called World Perspectives, Incorporated. Since 2015, indirect exports of corn and soybeans through beef and pork exports have been the fastest-growing category of corn and soybean use. That’s delivered critical returns for corn and soybean producers. These farmers support the international promotion of U.S. beef, pork, and lamb, by investing a portion of their checkoff dollars in market development efforts conducted by USMEF. In 2019, U.S. beef and pork exports used 480 million bushels of corn. Corn revenue generated by pork exports totaled $1.8 billion. Last year, U.S. pork exports used 2.12 million tons of soybean meal, equivalent to 89.2 million bushels of soybeans, that generated $751.7 million in revenue. Beef and pork exports also used approximately three million tons of DDGS, which generated $411.8 million in revenue for ethanol’s co-products. USMEF President and CEO Dan Halstrom says, “We greatly appreciate the foresight and confidence shown by the corn and soybean sectors when they invest in red meat exports. This study proves the value delivered by that investment.” ********************************************************************************************** USDA Report says China Continues to Buy U.S. Ag Products Trade reports released by USDA last week show that China is picking up the pace of buying U.S. ag commodities, making both old-crop and new-crop purchases. Chinese buyers are purchasing a lot of U.S. corn, soybeans, and wheat in their recent run on commodities during the week of July 3-9. USDA reported 768,300 metric tons of old-crop corn sales, as well as 600,000 tons of new-crop sales. Additional corn exports during the week were 119,700 tons. The USDA trade report also showed that new export sales of soybeans were for 552,000 tons, 390,000 of which will be delivered during the next marketing year that starts on September 1st. The export sales report says new soybean crop sales came in at 389,000 tons, and exports were almost 228,000 tons. Chinese buyers also purchased more than 323,000 tons of wheat during the same week. That pushed the total sales up to the highest point for 2020-2021. The USDA also says weekly exports totaled 113,700 tons. Net sales of cotton, rice, and barley were all lower than the previous week. Net sorghum sales were up 35 percent from the prior week. ********************************************************************************************** Iowa Senators Pushing for Ethanol Aid in COVID Aid Package Chuck Grassley, Senate Finance Committee Chair, says he and fellow Iowa Senator Joni Ernst will push for ethanol plant assistance as Congress begins developing another COVID-19 aid package this week. Grassley says he visited Iowa counties over the past two weeks while the Senate was in recess, noting that he heard plenty of people asking for ethanol assistance because the price of corn is still low. “Ernst and I are going to try to get something that would subsidize feedstock for the ethanol industry,” Grassley says. “What would make our appeal credible will be the oil industry getting help or a recognition that the oil industry got help through the Strategic Petroleum Reserve.” However, Grassley says the best thing to happen to the ethanol industry in the long-term is for people to start driving again as the economy picks up. “We’re seeing a little shoot up in the production of ethanol, but it will be a slow turnaround,” he adds. Grassley also says he believes there will be more aid to agriculture in the coronavirus bill, but Senate Majority Leader Mitch McConnell is determined to keep the cost of the next aid package under $1 trillion. ********************************************************************************************** Water Resources Development Act Heads to House Floor Legislation regarding U.S. investments in locks and dams and other inland waterways investments passed out of the House Transportation and Infrastructure Committee last week. The Water Resources Development Act of 2020 authorizes construction on 34 pending water infrastructure projects. It also gives the go-ahead on 35 separate feasibility studies on other projects. A DTN report says the bipartisan bill that passed out of committee unanimously will now head to the House floor. Sam Graves of Missouri, the ranking member on the committee, recalled the devastating flooding in Missouri and other Midwest states in 2019. He says the bill includes language to implement changes that will help non-federal levees improve their flood protection. The bill also includes continuing to study the Lower Missouri River Basin Flood Risk and Resiliency Plan. That study will look at flood-control projects on the Missouri River south of the Gavin’s Point Dam in South Dakota. For flood-prone communities, the legislation also provides new authority for water projects to those communities who see repetitive flood challenges up to $15 million in federal cost-share. The Waterways Council says this bill is a step in the right direction for inland waterways infrastructure improvements. ********************************************************************************************** CommonGround Approaching its Tenth Birthday CommonGround is about to turn ten years old, so the National Corn Growers released a video that celebrates the work getting done by more than 200 volunteers across the country. Through the support and work of state associations, these women who make up CommonGround serve as resources for customers who have questions about how their food is grown. The volunteers share their personal stories that help off-the-farm moms discover that they can feel good about the food they feed their families. America’s farm families provide an amazing array of options. However, there are so many competing claims about food, honest questions about the topic are understandable. By serving as information resources, these women are sharing their unique understanding of important topics, such as the difference between organic and conventional crops and how ranchers care for their animals more than a billion times since 2010. CommonGround began a decade ago as a grassroots movement to foster conversation among women, both on farms and in cities, about where our food comes from. The National Corn Growers Association and the United Soybean Board both had a hand in forming CommonGround. ********************************************************************************************** The U.S., Japan Organic Trade Pact Now Includes Livestock The USDA says livestock is now added to the list of products included in the organic trade arrangement between the U.S. and Japan. The Fence Post Dot Com says livestock can now be certified to either country’s organic standards for sale as organic in both markets. “Opening new markets for America’s organic farmers and ranchers continues to be a priority for USDA,” says Marketing and Regulatory Programs Undersecretary Greg Ibach (Eye-baw). “Japan is already one of the top export markets for U.S. organic products. This new agreement opens even more opportunities for everyone involved in the international supply chain for livestock.” The Office of the U.S. Trade Representative’s Chief Agricultural Negotiator Gregg Doud says Japan is a key international partner for the U.S. in the organic sector. “This expanded arrangement increases access for American organic farmers, ranchers, and businesses to the third-largest U.S. organic export market,” Doud says. The USDA also says equivalency arrangements reduce required certification costs, fees, inspections, and paperwork for American organic farmers, ranchers, and businesses across the supply chain.
| Rural Advocate News | Monday July 20, 2020 |
Washington Insider: Wall Street Becomes Self-Conscious Bloomberg is reporting this week that a Wall Street scenario “a decade ago” is surfacing again -- a film that highlights Wall Street executives dining at a moment when the U.S. economy was in tatters. Their industry, fresh off a bailout, was printing big profits again, and Americans were seething. Congress wanted investigations, Bloomberg said. The review included a comment from one executive to another as Goldman Sachs executive who turned to his peer from Morgan Stanley, which had been slower to bounce back from the crisis, and said: “You have no idea how damn lucky you are to lose money with a hopeless business model.” The table erupted in laughter, Bloomberg recalled, but added that “the kernel of truth in the quip is that nobody likes bankers profiting as the world burns. It draws a harsh spotlight.” The report notes that Wall Street's five biggest investment banks disclosed $45 billion in revenue from trading and deal-making units, “marking those businesses' best quarter in modern history.” It then emphasizes the circumstances including a “deadly global pandemic and the Federal Reserve's unprecedented measures to prop up the economy.” It's hard to imagine a more awkward time to land a windfall, Bloomberg says. For years, bank trading chiefs have been begging, even praying, for a surge in volatility to lift their fortunes by spurring client transactions. “Banks finally got their 'score' as markets plunged, with television screens showing refrigerated morgue trucks. Then, they made even more money as authorities rushed to help.” Morgan Stanley is reporting its highest revenue and profit ever. JPMorgan Chase & Co. blew past the revenue record its traders notched in the first quarter—topping it by 34% in the second quarter. Goldman's profit rose, even as the company set aside an additional $1 billion to cover potential legal costs, including its efforts to end international probes into its role in the looting of a Malaysian investment fund. The numbers were high enough that the ranks of sell-side stock analysts wondered about the potential for a public backlash. “Fair or not, banks are being depicted as being on the wrong side” of economic inequality and other issues, UBS Group's Saul Martinez said. “I'm just curious if you are concerned at all about populist, anti-bank policies gaining traction.” At least the banks didn't cause the recent crisis, Bloomberg says, unlike in 2008. In fact, three of the Wall Street giants -- JPMorgan, Bank of America Corp., and Citigroup Inc. -- set aside much of the money generated by the trading bonanza so they can better weather anticipated losses on lending to desperate companies and consumers. Altogether, the five banks stockpiled more than $25 billion in the quarter. Banks also are quick to note that the Federal Reserve didn't step in to save them as it did in the last crisis. Instead, the banks helped head off another meltdown by helping companies raise money and avoid bankruptcy. “The most important thing we could do is be a healthy and vibrant bank through this crisis,” JPMorgan Chief Executive Officer Jamie Dimon said in response to the analyst. The Fed may not have explicitly paid the banks billions of dollars, but it created an environment in which their success was all but guaranteed. The central bank helped cash-strapped companies raise money to shore up their finances and pay their bills. Banks made money by facilitating the fundraising, as well as on the related spike in stock and bond trading. Beyond the worries over optics are deeper policy questions. How effective is the Fed's stimulus in providing credit to critical industries, and how much lining of Wall Street pockets is acceptable as a side effect? Fed Chairman Jay Powell has indicated, in this moment, those concerns are secondary to saving the economy and millions of jobs. But Wall Street's gains will only revive perceptions that the deck is stacked in its favor. Those sentiments can have big ramifications. The profits investment banks made in the wake of bailouts in 2008 spurred the anti-government Tea Party movement, the Occupy Wall Street demonstrations, and a wave of new regulation. Complaints that the game is rigged later played into the ascent of populism in the 2016 presidential election, and they reverberate today. Banking leaders are well aware of the stakes. Some recently made it clear to their troops that they cannot be seen crowing. If it weren't for the pandemic, Chief Executive Officer David Solomon might have enjoyed the sight of a packed auditorium at Goldman, reacting to the best quarter under his leadership. Dimon would've strolled the aisles of JPMorgan's Madison Avenue trading floors, personally saluting his workers. Instead, Solomon met with a couple of dozen scattered executives in the hall in front of him. At JPMorgan, Dimon emailed employees a tightly worded “congratulations.” So, we will see. Much depends, observers say, on the eventual developments as the fight against the virus continues. Certainly, Wall Street is not exactly popular and if the Congress pulls back some of its economic supports as unemployment skyrockets, Wall Street's performance will certainly come in for its share of scrutiny. This will likely be both controversial and prolonged and should be watched closely by producers as it proceeds, Washington Insider believes.
| Rural Advocate News | Monday July 20, 2020 |
Heritage Foundation Urges Against Expanding CCC The conservative Heritage Foundation think tank is urging lawmakers to oppose a proposal to raise the spending limit for the Commodity Credit Corporation (CCC) to $68 billion, from the current $30 billion cap. The group is also taking aim at other provisions in a House-passed relief bill that allow payments from CCC to be used for additional payments, including to “aid agricultural processing plants to ensure supply chain continuity during an emergency period.” The CCC borrowing increase is not included in the pending House-passed COVID-19 relief package, which would only replenish CCC's borrowing authority to the $30 billion cap. Expanding CCC's spending authority, "would allow Congress to avoid making important choices, such as which agricultural commodities would be eligible for payments, which geographic regions would be covered, whether there should be payment limits, and about almost every detail of any future handout program, Heritage argued.
| Rural Advocate News | Monday July 20, 2020 |
KC Fed Sees Slowing Pace of Ag Lending Ag lending slowed alongside the initial effects of the pandemic and there is a more pessimistic outlook for agricultural economic conditions, the Kansas City Fed said in its latest Agricultural Finance Databook. The volume of total non-real estate farm loans continued into a yearlong trend of declines during the second quarter of 2020. The slowdown in lending was generally consistent across all types of loans, KC Fed analysts said. Delinquency rates on farm loans increased steadily through the first quarter and agricultural credit conditions remained weak. The report notes that emergency government lending programs, the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) program, “likely supplemented the financing needs of some producers while direct aid payments may help offset declines in farm revenues in 2020.”
| Rural Advocate News | Monday July 20, 2020 |
Monday Watch List Markets With corn pollinating around the country and soybeans starting to set pods, the latest weather forecasts continue to get a hard look from grain traders. USDA's weekly report of grain export inspections is out at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. CDT. Weather Monday features light to moderate rain with locally heavy amounts for portions of the western Midwest and Northern Plains. This moisture will be very timely for row crops following the past weekend's heat and dryness. Other crop areas will be dry. Stressful heat has moderated in the interior U.S. and is focused on the East Coast Monday. However, southern crop sectors will continue to see very warm to hot conditions
| Rural Advocate News | Friday July 17, 2020 |
USDA Meals to You Program Approaching 30 Million Served The Department of Agriculture announced the delivery of more than 28.5 million meals to low-income kids in rural America through the Meals to You partnership. The program delivers meals to the doorsteps of low-income kids in rural communities across America during the COVID-19 health crisis. While visiting McLane Global, one of USDA’s partners in the initiative, Agriculture Secretary Sonny Perdue stated, “We’ve heard from families across America who have told us that in these difficult times, the program has been a home run for feeding hungry kids.” Meals to You is a public-private partnership between USDA, the Baylor University Collaborative on Hunger and Poverty, McLane Global, and PepsiCo. It began as a summer pilot project in 2019 but has been successfully leveraged as an emergency program to address pandemic-related nutrition needs in rural areas. Initially, Meals to You aimed to serve one million meals to children in rural areas. As of July 11, 2020, 28.5 million meals have been delivered to 268,277 children across the U.S. ************************************************************************************ Ag Groups Welcome NEPA Reforms Agriculture groups welcome the announced changes by the Trump Administration to the National Environmental Policy Act. The White House says the final rule will modernize and accelerate environmental reviews under NEPA so infrastructure can be built in a timely, efficient, and affordable manner. President Donald Trump says, “By streamlining infrastructure approvals, we’ll further expand America’s unprecedented economic boom.” The Ag Retailers Association supports the reforms. ARA President and CEO Daren Coppock says the final rule will speed up the approval process for much-needed infrastructure projects, “which will especially benefit the rural communities in which ag retailers and their customers live and work.” The Fertilizer Institute applauded the rule's finalization, stating, "Many of our members have been negatively impacted by outdated NEPA guidelines.” However, Environmental groups object. Natural Resources Defense Council CEO and Obama-era Environmental Protection Agency Administrator Gina McCarthy says the rule "is a clear attempt to silence and sideline people to make it easier for industry to pollute our communities.” ************************************************************************************ Survey: Consumer Demand for Environmental Action Growing During Pandemic A recent global survey shows consumer demand for environmentally sustainable practices and products has increased since the beginning of the COVID-19 pandemic. The U.S. Cotton Trust Protocol conducted the survey to find how sustainability programs at brands and retailers had changed in a post-COVID world. The survey found 54 percent of sustainability leaders at apparel and textile brands say they’ve seen their customers’ demands increase for sustainable projects. However, 59 percent said they believe customers will still continue to prioritize price when making purchases. The survey found that 43 percent of respondents believe COVID-19 has had a positive impact on investments in sustainability efforts during this period, while 40 percent believe it has had a negative impact. The survey found 54 percent of respondents report demands for sustainable projects has “significantly” or “somewhat” increased since the beginning of the pandemic, and 42 percent said that those customers are also more vocal in those demands. ************************************************************************************ Class Action Lawsuit Alleges ADM Ethanol Market Manipulation A class-action lawsuit filed this week claims Archer Daniels Midland Company engaged in an illegal scheme to manipulate ethanol markets. The lawsuit was filed on behalf of ethanol producers and led by Green Plains Inc. The proposed class-action suit was filed in the U.S. District Court of Nebraska, and claims senior ADM officials knew of the alleged manipulation, according to Reuters. In a recent complaint to S&P Global Platts, the benchmark pricing provider for ethanol, the industry claimed ADM was aggressively selling ethanol on the cash market and timing the transaction 30 minutes ahead of the close of the trading day. The move flooded ethanol markets and choked off competitors, according to the filers of the lawsuit. The DiCello Levitt Gutzler law firm in Chicago is representing Green Plains. A Law firm spokesperson says, “We encourage everyone with knowledge and those that care about fair and equitable marketplaces to come forward.” ************************************************************************************ Ethanol Industry Losses Could Reach Nearly $9 Billion The Renewable Fuels Association says the industry has lost more than $3.4 billion in revenue stemming from the COVID-19 pandemic. An industry analysis released by the association this week also found that pandemic-related damages in 2020 and 2021 could reach nearly $9 billion. The data is based on the latest projections from the Energy Information Administration and Agriculture Policy Research Institute. Between March and June of 2020, the study by RFA found the cumulative decline in ethanol production and consumption exceeded 1.3 billion gallons, and nearly 500 million fewer bushels of corn were used in ethanol production during the period. Assuming current market conditions do not deteriorate, total pandemic-related revenue losses for the industry could approach $7 billion in 2020 and $1.8 billion in 2021. However, if states adopt additional travel and business restrictions, the losses may be larger and may even surpass the $10 billion estimate from RFA's initial forward-looking analysis released in April. ************************************************************************************ Texas, USDA, Sign Stewardship Agreement Agriculture Secretary Sonny Perdue signed a Shared Stewardship agreement with Texas Governor Greg Abbot Thursday. The agreement will establish a framework for federal and state agencies to improve collaboration in responding to natural resource concerns and ecological challenges in Texas. Governor Abbot says the agreement “is an important step toward strengthening our partnership with the federal government and renewing our commitment to responsible forest management.” The agreement is between the Forest Service and Natural Resources Conservation Service, and the Texas Parks and Wildlife Department, as well as the Texas A&M Forest Service. Texas is the 15th state to agree to a Shared Stewardship framework. The framework uses a modern and collaborative approach to focus on landscape-scale forest restoration activities to protect at-risk communities and watersheds. The agreement with Texas will focus on encouraging strong, long-term forest management programs, promoting sound and scientific silvicultural practices, and aligning various agency land management activities to meet common goals.
| Rural Advocate News | Friday July 17, 2020 |
Washington Insider: Fed Survey Warns of Tepid Recovery This week, Bloomberg commented on a federal survey that shows a tepid recovery by early July. “Economic activity increased in almost all Districts,” it says, but remained “well below where it was prior to the COVID-19 pandemic.” The report was based on its Beige Book survey released Wednesday in Washington. “Outlooks remained highly uncertain, as contacts grappled with how long the COVID-19 pandemic would continue and the magnitude of its economic implications.” The report, prepared by the Chicago Fed, was based on anecdotal information collected by the 12 regional reserve banks on or before July 6. Although economic activity may have picked up at the end of May and beginning of June as businesses reopened, a resurgence in coronavirus cases in many states is driving fears of a new slowdown. California has again imposed lockdown measures, and Texas and Florida have curbed certain activity. Businesses in the Fed's survey reported uncertainty about future demand amid the resurgence. Fed Governor Lael Brainard pointed to a highly uncertain economic outlook on Tuesday, saying the central bank should turn its focus to providing accommodative monetary policy to support a full recovery. Officials held interest rates near zero at their meeting last month and signaled in their quarterly forecast that they expect to keep them there through 2022. “A late June resurgence in COVID-19 cases slowed or reversed the reopening process, jeopardizing further recovery in consumer spending,” the San Francisco Fed noted. The words “uncertain” or “uncertainty” appeared 16 times in the report, Bloomberg noted. “In comparison with our previous report, the outlook among contacts is slightly more pessimistic while also much more uncertain,” the St. Louis Fed said. Activity in most sectors remained subdued, and even in industries that saw an increase in demand, such as manufacturing, the jump up was from a very low level, or was a meager one. Energy activity continued to fall on the back of low demand and oversupply. Employers across the Fed system reported new hirings, but levels remained subdued. Businesses cited both renewed layoffs and difficulty in bringing back workers amid safety concerns, a lack of childcare and higher-than-usual unemployment benefits. The Philadelphia Fed reported net employment gains “masked a small, steady stream of permanent layoffs.” Several Fed districts reported evidence of ongoing pay cuts, reduced hours and unpaid leave. Cuts to earnings, coupled with the already-high unemployment rate, could further weigh on consumer demand and damp down inflation, which is already well below the Fed's 2% target. Consumers make up 70% of the U.S. economy. Prices were little changed across the 12 districts, though some reported higher costs for food and beverages. Supply chain issues have driven up the cost of food and are leading to rising food insecurity. Grocery prices rose 5.6% in June from a year ago, the largest increase since 2011, Labor Department figures showed Tuesday. Also this week, POLITICO is reporting that “as lawmakers return to work next week to debate a new stimulus package with a price tag in the trillions, the summer COVID-19 sequel is playing a lot like the spring original. The urgency this time isn't so much to cushion the economic blow, but to keep the nascent economic recovery on track.” And, the report notes that “worrying data points are accumulating.” Senate Majority Leader Mitch McConnell has said a new package will come together in the next three weeks. With the new signs of economic trouble, Republicans have signaled they may be willing to expand that package to include more federal jobless aid. McConnell said Monday that the next package would have a "continued emphasis on jobs, meaning unemployment insurance for those who are unable to get back to work." Mark Zandi, chief economist of Moody's Analytics, predicts job growth will be weaker in July than in June and May. “The economy took a huge body blow and it's still reeling,” he said in an interview. “And if the virus continues to intensify and we don't get some support from Congress and the administration soon, we will go back into recession,” Zandi warned. So, we will see. The most recent new health uncertainties are significantly affecting the outlook—trends that producers should watch especially closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Friday July 17, 2020 |
EPA Now Considering 58 Gap-Year SRE Requests At least 58 retroactive small refinery exemption (SRE) requests have been received by the Environmental Protection Agency (EPA), according to the latest update from the agency. The push by refiners for the retroactive “gap-year” exemptions stems from a 10th Circuit Court ruling that held they are only eligible for future SREs, hardship exemptions from Renewable Fuel Standard (RFS) blending requirements, if they have maintained a continuous string of the waivers since 2011. The previous update on June 18 listed 52 requests for compliance years 2011 through 2018. Separately, refiners have submitted another 27 waiver applications for the 2019 compliance year and one for 2020. Biofuel proponents including the Renewable Fuels Association (RFA) and National Biodiesel Board (NBB) have criticized the gap-year requests as an effort to circumvent the 10th Circuit ruling and have argued EPA policy and the court decision compel the agency to reject the petitions. Controversy over the gap-year requests has led lawmakers to hold up the Senate confirmation of an EPA official and delayed EPA's proposal setting RFS 2021 blending volumes for biofuel and 2022 mandates for biodiesel.
| Rural Advocate News | Friday July 17, 2020 |
Livestock Organic Equivalence Agreement Takes Effect for US, Japan The existing U.S.-Japan organic equivalence agreement was expanded to cover livestock products, with the changes taking effect Thursday. The new agreement will reduce costs and streamline the process for businesses across the organic livestock supply chain, requiring them to secure just one organic certification instead of two for products exported to Japan, the Office of the US Trade Representative (USTR) said. Technical experts from the U.S. and Japan “conducted thorough on-site audits to ensure that the regulations, quality control measures, certification requirements and labeling practices are compatible” leading up to the agreement, USTR said. With the updated agreement in place, U.S. organic livestock products may exported to Japan if they secure certification under either Japan Agricultural Standards (JAS) or from USDA. An organic equivalence for plant-based products has been in place between the U.S. and Japan since 2014
| Rural Advocate News | Friday July 17, 2020 |
Friday Watch List Markets Traders will start the day looking at the latest weather forecasts and watching for any trade news that may develop. A report on June U.S. housing starts is set for 7:30 a.m. CDT, followed by an index of U.S. consumer sentiment at 9 a.m. Weather Hot and dry conditions are in store for most of the Plains and Midwest Friday. The heat will be stressful to pollinating corn and flowering soybeans. Human and livestock stress will also develop. Rain will be confined to thunderstorm activity in the southeastern Plains, northern Delta and isolated areas of the northern Midwest.
| Rural Advocate News | Thursday July 16, 2020 |
USDA Posts 2020 Dietary Guidelines Advisory Committee’s Final Report The Department of Agriculture Wednesday posted the 2020 Dietary Guidelines Advisory Committee’s final scientific report. The report will inform USDA and the Department of Health and Human Services as they co-develop the 2020-2025 Dietary Guidelines for Americans. The guidelines will provide recommendations on what to eat and drink to promote health and prevent chronic disease. Moving into the next stage of development of the guidelines, USDA and HHS will leverage the scientific advice in the committee’s report, as well as comments from the public and other federal agencies to develop the upcoming edition of the dietary guidelines. The departments plan to publish the 2020-2025 Dietary Guidelines by the end of December 2020. USDA and HHS are accepting written public comments on the committee’s final report through August 13, 2020. The public will also have an opportunity to provide oral comments on the scientific report to the departments at a public meeting on August 11, 2020. ************************************************************************************ Globally, Farmers Adapting to Pandemic Challenges A new global survey shows farmers have once again demonstrated their ability to adapt to new challenges. Kynetec, a global market research firm specializing in animal health and agriculture, released the survey results this week. The survey spanned six key countries, the U.S., Canada, France, the United Kingdom, Germany and the Czech Republic, and included feedback from 873 farmers. The survey provided a mix of positive and negative insights into the impact COVID-19 has had on their lifestyle and livelihood. The degree of impact varied between countries with country variation ranging from 41 percent to 67 percent of farmers saying the virus has impacted their personal lives. In the short-term, farmers in most countries lack optimism regarding the current outlook for agriculture and the speed of economic post-lockdown recovery. Farmers adapting to the pandemic say planned investments were some of the main challenges across all countries that farmers have faced because of COVID-19. ************************************************************************************ Graves Introduces 2020 Water Resources Development Act U.S. Representative Sam Graves, a Missouri Republican, introduced the Water Resources Development Act of 2020 this week. Graves says the legislation plays a key role in any water infrastructure project, including flood control, navigation, ports, locks and dams. The legislation will facilitate commerce through ports and inland waterways, improve flood control infrastructure, and “help develop flood control plans that actually work.” The legislation will give the U.S. Army Corps of Engineers new construction authority for communities facing repetitive flooding events. One of the more significant roadblocks to ensuring a project can be done quickly is getting construction authority expeditiously, and this bill will allow those communities to be protected more quickly, according to Graves. The bill also makes an important change in the cost-share for Inland Waterways Trust Fund projects on the Upper Mississippi and Illinois River systems. This change will accelerate the timeframe for funding and completion of projects to modernize outdated locks and dams on these rivers. ************************************************************************************ Senators Seek Textile Industry Assistance A group of Senators wants the next round of COVID-19 assistance to support the cotton and textile industry. Led by Republican Senator Thom Tillis of North Carolina and Democratic Senator Mark Warner of Virginia, the group penned a letter to Senate leadership this week. The Senators say the U.S. cotton and textile industry "is particularly hard hit as the COVID-19 pandemic is causing unprecedented demand destruction for cotton apparel and textiles." The group says the "viability of the farms and businesses, and the jobs they represent, are at risk of not surviving this crisis." From March through May, clothing sales are down by $44 billion, or 67 percent, relative to the same three-month period in 2019. U.S. textile mills report a 90 percent drop in orders for the yarn they produce. Cotton prices fell by as much as 30 percent since early this year, and that decline represents a loss in market value of approximately $160 per acre of cotton. ************************************************************************************ USDA Invests $153 Million in Rural Community Facilities The Department of Agriculture announced a $153 million investment to build and improve critical community facilities to benefit nearly two million rural residents in 23 states. USDA Deputy Under Secretary for Rural Development Bette Brand says, “Rural America needs safe, modern infrastructure to help residents and businesses achieve greater prosperity and have access to essential services.” USDA is investing in 94 projects through the Community Facilities Direct Loan and Grant Program. The investments can be used to build or upgrade a wide range of rural community facilities such as schools, libraries, clinics and public safety facilities. More than 100 types of projects are eligible for Community Facilities funding. Eligible applicants include municipalities, public bodies, nonprofit organizations and federally recognized Native American tribes. Projects must be in rural areas with a population of 20,000 or less. Interested parties should contact their USDA Rural Development state office for information about additional funding, application procedures and eligibility details. ************************************************************************************ American Farmland Trust Sponsors Leopold Conservation Award Program American Farmland Trust will join forces with the Sand County Foundation to present the Leopold Conservation Award Program through a national sponsorship. Sand County Foundation created and presents the award in 21 states. The award is for farmers, ranchers and foresters who inspire others with their dedication to land, water and wildlife habitat conservation on agricultural land. AFT President and CEO John Piotti calls the Leopold Conservation Award, “an honor bestowed on the best land stewards in this nation,” adding, “It’s a natural fit.” Given in honor of conservationist Aldo Leopold, the award recognizes outstanding achievement in voluntary conservation. Since 2003, the award has been presented to more than 140 dedicated land stewards who are leaders in their industry and communities. Award recipients receive a $10,000 cash award at high profile events attended by their peers. Their conservation success stories are promoted widely to other agricultural landowners and the general public.
| Rural Advocate News | Thursday July 16, 2020 |
Washington Insider: Growing Tensions Over Hong Kong Bloomberg, and others, are focusing quickly on the implications of the growing “back and forth” with China over Hong Kong. The island, until recently an oasis of political stability in Asia, is now gripped with unprecedented regulatory and legal uncertainty that threatens its position as one of the world's top financial hubs. China's imposition of a sweeping, but vague, worded national security law on June 30 has already begun to change the business landscape. Tech giants like Google and Facebook Inc. have suspended processing data requests from the government. Banks are struggling to figure out how to comply with the contradictions in U.S. and Chinese legal changes. Even mainland bankers in the city got a shock when China started taxing their incomes at rates as high as 45%, compared with 15% in Hong Kong. On Tuesday, President Donald Trump stripped away certain special privileges for Hong Kong under U.S. law, a decision that eliminated a range of measures that allowed the capitalist city different treatment from the mainland, ranging from preferences for passport holders to allowing access to sensitive technologies to a Fulbright scholar exchange program. Also, he signed a law that would punish banks for dealing with officials facing sanctions. The escalating political turbulence, which follows months of anti-government demonstrations last year, has jarred a city that for decades served as a stable base for multinationals to access China. “The U.S. measures, alongside Beijing's own crackdown on Hong Kong, are fast turning the city from an open, stable international financial center to contested ground at the very front lines of a rapidly intensifying geopolitical conflict,” said Antony Dapiran, a lawyer based in the city. China “shot back” immediately after Trump's announcement, pledging to retaliate with unspecified strong countermeasures against U.S. officials and entities. Regina Ip, a member of Hong Kong leader Carrie Lam's advisory Executive Council, said the U.S. measures would actually achieve the opposite of what Washington intends. “It will only drive more Hong Kong people to rely more and more on mainland China for support for our prosperity and stability,” Ip said. “This will not really effect the foundations of Hong Kong's success as an international financial center, because the financial measures will only be imposed on individuals and entities identified under the act. It's not as sweeping as some have suggested.” The real-world impact of the U.S. moves on Hong Kong's trade will likely be limited since the vast majority of the city's shipments to the U.S. consist of re-exports, or goods passing through the city with no substantial modifications, Bloomberg said. Still, the marked deterioration in U.S.-China ties over the past few months means that Hong Kong is likely in for more turbulence as U.S.-China ties worsen. By one gauge of confidence in the finance hub -- the flow of capital -- appears to be holding up, with key metrics suggesting that, if anything, money continues to flow into Hong Kong rather than leave. However, the extremely broad provisions of the new Chinese law -- which bars subversion, secession, terrorism and collusion with foreign forces -- have left residents scrubbing social media accounts, business owners taking down pro-democracy posters, and business chambers saying companies may move assets and capital to other financial centers in part due to difficulties finding talent in Hong Kong. Things could get worse yet if banks and other financial institutions eventually face sanctions under the Hong Kong Autonomy Act that Trump signed Tuesday. Even if Beijing pushes back, the U.S. actions will still hit the city's global reputation in financial markets and could make it a less favorable spot to conduct business, said Willy Lam, an adjunct professor at the Chinese University of Hong Kong's Centre for China Studies, who has authored numerous books on Chinese politics. “It's also possible that fewer American businesses may want to do business with Hong Kong,” Lam said. “They may move directly to Shanghai or other financial centers in Asia such as Singapore.” There's little sense things will improve even after the U.S. election in November. Joe Biden, the presumptive Democratic nominee, is likely to stick by all of Trump's recent moves if the former vice president takes office, said Richard McGregor, a senior fellow at the Lowy Institute in Sydney. “There's no floor under the U.S.-China relationship,” he told Bloomberg. “We keep finding new lows.” So, we will see. Clearly, the frictions over Hong Kong have taken on a life of their own, and they are likely to have serious adverse impacts unless some significant effort is made to bridge the gap—a proposition that seems quite unlikely just now, but which should be watched closely by producers as it proceeds, Washington Insider believes.
| Rural Advocate News | Thursday July 16, 2020 |
Just Eight States Have Imposed Mandatory COVID-19 Measures For Ag Workers Only a handful of states have put mandatory COVID-19 protections in place specifically for farmworkers, according to an analysis from the Environmental Working Group (EWG). Overall, 16 states have safety recommendations, but they are not enforceable, while the rest have not imposed any standards. Several states, including Florida and Texas, have not issued any recommendations. Colorado, Michigan, New Mexico, New York, Oregon, Pennsylvania, Washington and Wisconsin are the only states to require produce growers and other farm operations to provide personal protective equipment to farmworkers and to require physical distancing, according to EWG.
| Rural Advocate News | Thursday July 16, 2020 |
RFA Says Ethanol Industry COVID-19 Losses Top $3.4 Billion The ethanol industry has seen over $3.4 billion in lost revenues due to the COVID-19 pandemic, the Renewable Fuels Association (RFA) said Wednesday. Pandemic-related damages in the ethanol sector could reach some $9 billion, with $7 billion in losses during 2020 and another $1.8 billion in 2021, RFA warned. “If additional travel and business restrictions are adopted by states, the losses would be larger and may even surpass the $10 billion estimate from RFA's initial forward-looking analysis released in April,” the group added. The $3.4 billion decline in revenues seen to date were due to a combination of reduced ethanol output and lower prices, RFA said. “The social distancing and government-imposed restrictions associated with COVID-19 resulted in a dramatic reduction in the consumption of motor gasoline and ethanol in the spring of 2020,” the analysis noted.
| Rural Advocate News | Thursday July 16, 2020 |
Thursday Watch List Markets The latest weather forecast remains the primary focus for row crops. USDA's weekly export sales report is out at 7:30 a.m. CDT Thursday, along with U.S. jobless claims, June retail sales and an update of the U.S. Drought Monitor. USDA export sales announcements have been more active lately, announced at 8 a.m. CDT, if there is business to report. The U.S. Energy Department posts natural gas inventory at 9:30 a.m. CDT. Weather Thursday will be seasonally warm in the northern and central crop areas, offering favorable conditions for corn and soybean pollination and flowering. Southern crop areas will be mostly dry and hot, especially in the southwestern Plains through western Texas. Rainfall will be limited to scattered light activity in portions of the Southern Plains and eastern Midwest.
| Rural Advocate News | Wednesday July 15, 2020 |
Ag Equipment Sales Rise in June The overall sales of tractors and self-propelled combines were higher in both the U.S. and Canada during June. According to the latest data from the Association of Equipment Manufacturers, it’s the first time this year that the sales numbers rose. Total U.S. farm tractor sales rose 32 percent in June. Only four-wheel-drive tractor sales declined in the U.S. during June. Total year-to-date farm tractor sales are up 10 percent in 2020, while combines cut year-to-date losses to only 1.7 percent in the same period. In Canada, tractor sales grew across just about all segments during June, with overall tractor sales up 32 percent. “We’re seeing more areas of the economy open up from the previous pandemic-related shutdowns, so we’re not entirely surprised some of that pent-up demand is expressing itself right now,” says Curt Blades, Senior Vice President of Ag Services at AEM. “However, we’re currently keeping our optimism cautious, as the current state of things with COVID-19 could see a negative impact on demand moving forward.” Blades also says there is too much uncertainty surrounding COVID-19-related events and their impact on the agricultural markets to determine if this higher trend will keep going.” ********************************************************************************************** China Makes Biggest U.S. Corn Buy Ever A Reuters report says China made the biggest purchase of U.S. corn in history on Tuesday. It’s the second massive deal that China has made for corn in less than a week. The Asian nation made the buy in an attempt to meet its commitments in the Phase One trade deal with the U.S., even as tensions rise between Washington, D.C., and China. The USDA says private exporters report that China bought 1.76 million tons of corn for shipment during the 2020-2021 marketing year that starts on September 1st. The sale passed the previous record of a one-day corn sale to China that totaled 1.45 million tons in December of 1994. The deal followed a sale of 1.365 million tons to China on July 10th, a deal that was spread out over two marketing years. Last week, China increased its corn and soybean import forecasts for the current season as the country expects to step up its agricultural purchases from the United States. China also booked deals to buy 129,000 tons of soybeans in the 2020-2021 marketing year. Beijing agreed to buy $80 billion worth of U.S. ag products over the next two years in the Phase One trade deal between the two countries. ********************************************************************************************** Major Slowdown at Chinese Ports Could Impact Global Trade Chinese testing of meat, seafood, and other products for the coronavirus has tripled customs clearance times at some major Chinese ports. Bloomberg says the intensive testing is raising some major concerns that the delays could eventually tangle up global trade flows. It normally takes about three days to clear produce through customs, but an official with a supply chain company says it’s now taking up to 10 days. China began testing cold food shipments for the virus last month in a move it says is aimed at protecting the health of the general public. The testing has combined with large arrivals of cold-storage food to add to the congestion at some of its biggest ports. China had been boosting meat imports in a bid to offset domestic shortages after the African Swine Fever outbreak that decimated the country’s pork herds. Meat and offal shipments surged to almost 900,000 tons in June, 75 percent higher than at the same time in 2019. Beijing says the new measures are helping to control the spread of the virus and will help stop another potential outbreak. Though China still needs more meat, the testing may cause exporters to slow sales to the Asian country because of the potential to get caught up in the testing process. ********************************************************************************************** Meat Production Continues to Rebound The USDA recently raised its estimate of red meat and poultry production. The numbers in its newest WASDE report shows production levels three billion pounds higher than the agency predicted after COVID-19 shut down meat plants in April and May. An Agriculture Dot Com article says the meat outlook brightened for the second month in a row. “The beef production forecast is raised primarily on higher cattle slaughter and heavier carcass weights,” the USDA says. “Forecast pork production is raised from last month primarily on higher expected second-half commercial slaughter. Broiler production is also raised on recent hatchery data.” In all, USDA forecast meat production of 106 billion pounds this year, which is more than its May estimate of 103 billion pounds. The USDA also estimates meat production will total 107.6 billion pounds in 2021. Americans consumed a record of 224.3 pounds per person last year. Consumption was expected to climb to 227.4 pounds before the coronavirus entered the country. After the outbreak forced slowdowns and temporary closures of some of the largest U.S. meatpacking plants, the USDA said per-capita consumption would drop to 217.1 pounds of meat as production shrank. ********************************************************************************************** Summer Farmland Market May Be Heating Up The Farmers National Company says the spring and early summer seasons are typically slow when it comes to farmland sales. This year, that timeframe was even slower than normal. However, the land market is now warming up. Business at the Farmers National Company is as robust as its been in recent years and they say business still went on despite the effects of COVID-19. Demand for high-quality cropland remains good in most areas and is bringing mostly steady prices. Some of these sales are happening without being on the open market as the sales come up quickly and buyers are found just as quickly. The lower-quality cropland is less in demand, which tends to soften price levels. There are also first-time buyers in the market currently looking to invest in ag real estate. The outlook for land sales is positive and should bring mostly steady prices in many areas of rural America. Landowners who are considering selling are already reaching out to brokers and potential buyers. Farmers National says possible financial stress among some agricultural producers, the direction of the general economy, and the recovery from COVID-19 effects all remain wild cards in the land market. The company says predicting the ag economy is difficult as things can change overnight. ********************************************************************************************** Dairy Farmers Oppose Whole Milk Ban in Schools The American Dairy Coalition recently fired off a letter to Ag Secretary Sonny Perdue and Health and Human Services Secretary Alex Azar regarding whole milk. The coalition, which represents dairy farmers, told both department heads that they’re unhappy about the possibility the report of the Dietary Guidelines Advisory Committee will recommend continuing a ban on whole milk in schools. The Hagstrom Report says the coalition has asked Perdue and Azar to intervene on the question. In the letter, the dairy coalition says, “Despite an abundance of science that demonstrates that full-fat dairy products reduce chronic disease in children and adults and promotes learning children’s learning ability, the Dietary Guidelines of America continues to set caps on saturated fats, effectively banning whole milk from daycares and school nutrition programs.” The Dietary Guidelines for America set the nation’s leading nutrition policies. The American Dairy Coalition wants Perdue and Azar to ensure the publication of the DGA is updated to include the most recent evidence on the benefits of saturated fats and the healthy role they play in the diets of both school-aged children and adults.
| Rural Advocate News | Wednesday July 15, 2020 |
Washington Insider: Greater Unemployment Support Looks Possible The Washington Post is reporting this week that senior Trump administration officials have begun signaling their willingness to approve a “narrow extension” of the enhanced unemployment benefits helping tens of millions of jobless Americans hurt by the coronavirus pandemic. In less than two weeks, the federal program that provides a $600-per-week increase to unemployment benefits will expire. Many economists warn the disappearance of this enormous federal stimulus, created in March, could hinder the economic recovery and deprive millions of Americans of a vital financial lifeline. More than 30 million people are collecting what many recipients say is a crucial pillar of financial support right now. However, Senate Majority Leader Mitch McConnell R-Ky., on June 30 said the expiring added unemployment benefits were a “mistake,” and President Trump and White House officials have argued the $600-per-week unemployment bonus provides a “disincentive to work and should be scrapped. But with the program's termination approaches and the economy showing new signs of strain, administration officials have begun opening the door to some form of “what Congress previously approved,” the Post said. For example, Treasury Secretary Steven Mnuchin said last week that the administration's priority was ensuring that future benefits amount to “no more” than 100% of a worker's prior wages -- comments that surprised some congressional Republicans who thought he shared their strong opposition to extending the benefits, the Post said. Larry Kudlow, the president's top economic adviser, said this week that the Trump administration is seeking “some unemployment reforms.” Earlier, he had more aggressively bashed the $600-per-week increase. Kudlow also seemed to push a “return to work” bonus that could supplement a reduction in unemployment benefits. That idea has been viewed as administratively difficult to implement, so its path to passage is unclear, the Post said. One potential compromise discussed by Republican lawmakers would involve cutting the unemployment benefit from $600 per week to between $200 and $400 and making up at least part of the difference with another round of $1,200 stimulus payments. On Monday, Senate Majority Leader Mitch McConnell R-Ky., said the next package would include “unemployment insurance for those unable to get back to work,” though he did not specify how much aid would be necessary. White House spokesman Judd Deere said that the administration is opposed to the $600-per-week increase but would not rule out a more limited expansion of the benefit. “UI reform is a priority for this White House in any phase four package being discussed,” he said. The emergency, temporary federal benefits come on top of the payments appropriated by state governments, which vary widely. Democrats have largely called for the benefits to be extended. The time left for discussion is short, the Post said. Republicans have discussed the issue internally but have no caucus position, and there are no serious bipartisan discussions underway. The Senate comes back on July 20, five days before the enhanced unemployment benefit expires in 49 states. They expire in New York state on July 26. The discussions are complicated by current labor market distress, the Post said. More than 1 million Americans continue to apply for jobless benefits every week and “the rise of coronavirus cases across the country threatens to prompt a new wave of shutdowns.” June's jobs numbers showed the U.S. has recovered about a third of the jobs lost during the worst of the crisis, but the “economy appears to have worsened in recent weeks since and there are few signs it will improve before expanded unemployment benefits expire,” the Post said. The report says that recent unemployment benefits helped stabilize the economic turbulence as unemployment rose to roughly 15 percent in April before falling slightly to 11 percent in June. Wages declined by $70 billion in May compared with February. The emergency unemployment benefits filled that gap, funneling $70 billion per month into the economy, according to Ernie Tedeschi, who was an economist in the Obama administration's Treasury Department. Removing that lifeline could spell hardship for millions of Americans. If the benefits disappear, perhaps 30 million Americans would see a severe income cut of between 50% and 75%, Tedeschi said. There is some bi-partisan agreement. People at the White House do understand reducing this $600-per-week benefit would be really bad for the economy and really bad in the fall, when you need the recovery,” said Stephen Moore, a conservative analyst and White House ally. “The stakes are really enormous here.” Moore, citing conversations with multiple small-business owners, described talk of taking the benefit down to $200 per week as “very objectionable. We should just go back to the old unemployment program, and if you want to help people financially just do the payments that go to everyone,” Moore said. As a result, many workers are left in a state of unparalleled uncertainty. For some, the supplemental insurance “was all that was keeping rent and expenses paid, especially for those recently laid off with local unemployment benefits alone. So, we will see. This high-pressure debate is also seen as very high stakes for many—fights producers should watch closely as they intensify, Washington Inside believes.
| Rural Advocate News | Wednesday July 15, 2020 |
Chinese Imports From The US Rise Chinese imports from the U.S. rose for the first time since the new coronavirus emerged earlier this year. China's appetite for meat and other agricultural goods helped Chinese imports of U.S. goods to jump by 11.3% in June from a year earlier, after a 13.5% drop in May, data from Beijing's General Administration of Customs showed. The Chinese buying helped to narrow Washington's trade deficit with Beijing from a year earlier, though Chinese exports to the U.S. also improved, rising 1.4% in June from a year earlier after a 1.3% decline in May. In the first six months of 2020, China imported 2.12 million metric tons of pork, 1 million metric tons of beef and 45 million metric tons of soybeans from its trading partners, which represented increases of 140%, 42.9% and 17.9%, respectively, from the same period a year earlier. Its overseas purchases of iron ore, crude oil, coal and natural gas also increased by volume in the first six months as commodity prices tumbled. Beijing's overall trade surplus fell to $46.42 billion last month, much smaller than May's $62.93 billion figure and economists' expectations for a $59.30 billion surplus.
| Rural Advocate News | Wednesday July 15, 2020 |
Reps. Pingree, Fortenberry Urge USDA To Expand CFAP To Small, Diversified Farmers Reps. Chellie Pingree, D-Maine, and Jeff Fortenberry, R-Neb., asked USDA Secretary Sonny Perdue to make the Coronavirus Food Assistance Program (CFAP) more inclusive for small, diversified farms who rely on local market outlets and direct-to-consumer sales. Recognizing that farmers who sell directly to consumers or to now-shuttered institutions would be disproportionately harmed by the COVID-19 pandemic, Congress specifically directed USDA to provide relief to “producers that supply local food systems, including farmers markets, restaurants, and schools,'' the lawmakers wrote. “Despite this, USDA did not provide any specific accommodation for these producers in the design of CFAP payments. Indeed, the program's rules have meant many of these farms are struggling to access relief or are entirely ineligible for assistance through this program.” The lawmakers requested that USDA allow for payments on total revenue losses, rather than price losses for individual commodities; provide flexibility on documentation regarding losses; and extend eligibility to additional commodities to be more inclusive of local food producers.
| Rural Advocate News | Wednesday July 15, 2020 |
Wednesday Watch List Markets Here in mid-July, the latest weather forecast is the first item checked by traders. The Federal Reserve reports on industrial production at 7:15 a.m. CDT, followed by the U.S. Energy Department's inventory report at 9:30 a.m. The National Oilseeds Processors Association releases a report on the June soybean crush later Wednesday morning. Weather Moderate to locally heavy rain is in store from the central Plains through the western and north central Midwest Wednesday. This moisture will be useful for pollinating corn and flowering soybeans. Temperatures will be seasonally warm north and central and hot south, notably in the dry southwestern Plains.
| Rural Advocate News | Tuesday July 14, 2020 |
Trump: China Phase Two Agreement Unlikely President Donald Trump recently told reporters a Phase Two agreement with China is not likely. The President said aboard Air Force One last week, "I don't think about that," adding, "The relationship with China has been severely damaged.” Bloomberg News reports the Trump administration continues to pressure China over the COVID-19 outbreak, alleging a cover-up by China, among other things. Regarding his relationship with China, Trump says, “They could have stopped the plague, they didn’t,” referring to the COVID-19 pandemic. The Phase One agreement included $200 billion of U.S. agriculture exports over two years. However, trade analysts say China isn’t purchasing at a pace to reach that level yet, and some say the level of purchases needed to meet the total is unattainable. Last month, state-owned companies in China suspended purchases from the United States over political issues. Also last month, Trump said the Phase One agreement was “fully intact,” the same day adviser Peter Navarro said it was effectively dead. ************************************************************************************ CoBank Issues Quarterly Economic Review CoBank says the recent rebound in the U.S. economy is real, but the sharpest post-shutdown economic gains are almost certainly behind us, and a long grind to shore up a shaky economy lies ahead. Despite COVID-19, U.S. grain has been moving and basis has generally tightened since April 1. Ethanol production and margins began to recover during the second quarter, but coronavirus resurgence is likely to limit future demand. The U.S. chicken sector swiftly filled retail meat cases when demand shifted and the red meat supply dropped. CoBank expects around three percent industry growth for the sector in 2020. Beef production and prices have now returned to pre-pandemic levels, and concerns are now shifting from supply to demand. The pork industry has rebounded from a supply chain shock that saw U.S. production fall by nearly half, before climbing back to above prior-year levels two months later. Finally, dairy farmers struggled through extreme market volatility last quarter. Diary prices are recovering, although farmers have yet to benefit. ************************************************************************************ USDA Seeks to Increase Rural Investment Through Streamlining Loan Programs The Department of Agriculture seeks to “cut the red tape” to make it easier to invest in rural America. USDA Monday announced steps to streamline access to four flagship loan programs. The programs include the Water and Waste Disposal Loan Guarantees Program, Community Facilities Guaranteed Loan Program, Business and Industry Guaranteed Loan Program, and the Rural Energy for America Guaranteed Loan Program. Under the initiative, USDA will eliminate duplicative processes and launch a single platform for the four loan programs. Agriculture Secretary Sonny Perdue says the changes “will make it easier for private lenders to use USDA programs to invest in rural businesses and grassroots rural economic development efforts." USDA is seeking public comments on the regulatory reforms expected to take effect on October 1, 2020. USDA also plans to conduct a series of listening sessions this summer on the proposed changes. For more information on how to register for the listening sessions, visit www.rd.usda.gov. ************************************************************************************ Farmers Report Concerns About Sales Reps on Farms During Pandemic A survey from Farm Journal found 45 percent of farmers have reservations about allowing sales representatives back onto their farm. The survey released last week, also found in order for input suppliers to be allowed back on the farm, 50 percent say social distancing would be required. Additionally, 18 percent want outside vendors to wear proper personal protection equipment, such as masks. However, not everyone is voicing that concern about sales representatives and non-employees coming on their farm. The survey found 36 percent say they're not concerned about visitors. Of the 640 farmers surveyed by Farm Journal, just 11 percent say they are not ready for visitors. Growing concerns or not, consultant Dick Wittman, thinks navigating new business practices today may be permanent solution in agriculture. Wittman says, "It's making people rethink how we can do business in the future. We don't need to have everybody interacting every day in an office." ************************************************************************************ Shoppers Still Fear Empty Grocery Shelves, Seek Bargains A recent survey finds grocery shoppers are looking for bargains, and half of consumers fear empty grocery shelves. Marketing agency Acosta says 53 percent of shoppers say product availability is a top priority. The American Farm Bureau Federation last week reported beef and pork supply chains are recovering from the pandemic panic buying. However, the industry needs to work through a backlog of slaughter ready animals. Meanwhile, more than one-third of shoppers are worse off financially than they were before the COVID-19 pandemic. The report says low prices will be a priority for 45 percent of shoppers post-pandemic. Acosta CEO Darian Pickett says, “A recession is here and will significantly impact the shopping habits of those affected.” Pickett says product availability remains a concern and shopper are focusing on health, wellness and safety more than ever. The survey also shows consumer priorities of social distancing, low prices, customer safety and promotions and deals on grocery products. ************************************************************************************ Fuel Demand Struggling as COVID-19 Cases Rise After falling for the first time in ten weeks, the national average price of gasoline has rebounded in the last week, rising 1.1 cents per gallon to $2.19. The national average price of diesel has decreased 0.2 cents and stands at $2.43 per gallon over the same period. GasBuddy’s Patrick De Haan says demand is struggling as coronavirus cases continue to increase in several states. De Haan says he expects gas prices to move sideways with the lack of a clear national trend, as we "remain in a COVID-19 holding pattern." Crude oil prices continue to hold near recent highs. But overall, as demand rebounds have stalled, so too has the rally in oil prices. In addition, OPEC’s strongest production cuts are to expire at the end of July, leading to more oil production, responding to the recovery in global oil demand. Last week saw a notable 5.7-million-barrel rise in U.S. crude oil inventories, which now stand 17.5 percent above year-ago levels.
| Rural Advocate News | Tuesday July 14, 2020 |
Washington Insider: Complaints Against Meat Companies In a report that is being picked up by daily newspapers, including the Washington Post, the Associated Press is reporting that new pressure on parts of the meat industry is coming from worker complaints alleging that processing companies Tyson and JBS have “engaged in workplace racial discrimination during the coronavirus pandemic.” The AP said several worker advocacy organizations have filed with USDA over the matter, alleging that company polices violated a section of the Civil Rights Act of 1964, which protects individuals from racial discrimination by recipients of federal financial assistance. The allegations assert that the companies “adopted policies that reject U.S. Centers for Disease Control and Prevention guidance on distancing and protective gear on meat processing lines,” and that the operating procedures have a discriminatory impact on mostly Black, Latino, and Asian workers. Tyson has received more than $109 million from USDA programs this year and JBS more than $45 million, the complaint said. As recipients of federal taxpayer dollars they are required to comply with federal laws. “When they took that money, they knew at that point that they would be held accountable to the Civil Rights Act of 1964, but they continued to violate that act,” said Joe Henry, director of Forward Latino, one of the groups filing the complaint. Others include the Food Chain Workers Alliance, HEAL Food Alliance, American Friends Service Committee of Iowa and the Idaho Organization of Resource Councils. Coronavirus infections were first reported in meatpacking plants in March and since then at least 34,961 COVID-19 cases have been confirmed among workers in 367 packing plants and at least 144 meatpacking workers have died, the complaint said. A CDC report released last week found 87% of those coronavirus cases occurred among racial and ethnic minorities even though they make up 61% of the worker population. After the outbreaks were uncovered, meatpacking plants began providing workers with face coverings, installed shields between work stations and implemented new procedures for distancing during breaks -- but they declined to adopt other U.S. Centers for Disease Control and Prevention recommendations for keeping people at least 6 feet apart, the AP said. The companies also declined to initiate slower speeds on production lines or add shifts to enable social distancing, according to the complaint. As a result, the complaint alleges that company operating procedures have a disparate impact on Black, Latino, and Asian workers, who make up a large share of production workers at the companies' plants, representing a pattern or practice of racial discrimination. Tyson spokesman Worth Sparkman told the AP that the company was still reviewing the complaints and noted that the company's top priority is the health and safety of all workers, their families and the communities where plants are located. “We've transformed the way our plants operate to protect our team members, implementing measures such as symptom screening before every shift,” he said. Cameron Bruett, a spokesman for JBS and subsidiary Pilgrim's Pride said the company welcomes any review of its practices and response to the pandemic. “During this pandemic, we have maintained our operations and the jobs they create only when we believe our facilities to be safe. We have embraced our responsibility to provide a safe working environment and will continue to do so. Our efforts have followed, and often exceeded, CDC guidance,” he said. USDA representatives declined to comment. The complaint goes to the USDA through an administrative procedure and it will be up to Secretary of Agriculture Sonny Perdue to decide how it's resolved, the AP said. The procedure could result in an agreement between the worker groups, the USDA and the companies or it could take years to get to a final resolution if there's no agreement, according to Dave O'Brien, a civil rights attorney in Cedar Rapids who handled such complaints in the Obama administration's Labor Department. The complaint filed last week asks the Civil Rights Division of the USDA to investigate and remedy the discrimination -- and for the agency to suspend or terminate funding to the companies if they do not comply with federal laws. So, we will see. The number of meat plant workers affected by the virus has been enormous, and the impacts on minority workers are attracting wide notice. This promises to be yet another negative impact that the US meat industry faces that likely will be both extremely difficult and expensive to overcome—and which should be watched closely by producers as these debates proceed, Washington Insider believes.
| Rural Advocate News | Tuesday July 14, 2020 |
AFBF Among Groups Pressing Congress On PPP Fixes The American Farm Bureau Federation (AFBF) is among the groups pressing Congress to pass the Small Business Expense Protection Act, which would allow small businesses to deduct expenses paid with a forgiven Paycheck Protection Program loan from their taxes. Currently IRS rules prohibit deducting expenses that are paid using funds from a PPP loan that is forgiven. Lawmakers intended for those funds to remain deductible, supporters of the legislation say, and they urged Congress to make the correction. “The Small Business Expense Protection Act will fix this misinterpretation and reestablish the ability of small businesses that have received PPP loans to deduct business expenses as the CARES Act intends,” AFBF and other groups said in a letter to House Speaker Nancy Pelosi, D-Calif., House Minority Leader Kevin McCarthy, R-Calif., Senate Majority Leader Mitch McConnell, R-Ky. and Senate Minority Leader Chuck Schumer, D-N.Y. The measure is currently awaiting consideration before the House Ways and Means Committee and the Senate Finance Committee.
| Rural Advocate News | Tuesday July 14, 2020 |
Trump Says Phase Two US-China Deal Not Currently On The Table President Donald Trump said a phase two trade deal with China is not under consideration, saying the relationship between Washington and Beijing has deteriorated too much. “I don't think about that,” Trump said Friday when asked about the possibility of a second round of trade agreements with China. “The relationship with China has been severely damaged... They could have stopped the plague, they could have stopped it, they didn't stop it.” The Trump administration has blamed China for being the source of the coronavirus pandemic, opposed China's measures to limit Hong Kong's autonomy, and become increasingly critical of human rights abuses toward Uighur Muslims in China's Xinjiang region. China has said U.S. criticism on these issues could put phase one of the agreement in jeopardy.
| Rural Advocate News | Tuesday July 14, 2020 |
Tuesday Watch List Markets The latest weather forecasts remain a primary focus for grain traders. The only official report on Tuesday is consumer prices from the U.S. Labor Department at 7:30 a.m. CDT. Any trade news and updates on coronavirus will also be noticed. Weather Light to moderate rain is in store for portions of the western Midwest and the Northern Plains Tuesday. Moisture will be favorable for pollinating corn and flowering soybeans. Other crop areas will be drier. Temperatures will be seasonal to below normal in northern crop areas, seasonal central, and above to much above normal south. Heat advisories and heat warnings cover much of the Southern Plains and Delta.
| Rural Advocate News | Monday July 13, 2020 |
House Appropriations Committee Approves Ag Appropriations Spending The House Appropriations Committee approved the fiscal year 2021 appropriations bill covering the U.S. Department of Agriculture, the Farm Credit Administration, and the Commodity Futures Trading Commission. The committee’s ranking Republican, Kay Granger of Texas, says some of the provisions designed to stop the Trump administration from making reforms could be “poison pills.” Jeff Fortenberry of Nebraska also says he’s unhappy with some provisions and the bill’s financing. An amendment from Georgia Democrat Sanford Bishop calls for the National Academies of Sciences, Engineering, and Medicine to complete an analysis of the latest version of the Dietary Guidelines for Americans. The analysis is due within a year and would focus on the methodology used, and then would be compared to what the National Academies recommended in 2017. The Hagstrom Report points out that the Dietary Guidelines Advisory Committee’s methodologies have been controversial for years. The only other amendment to the appropriations bill gives the FDA legal authority to recall unsafe prescription and over-the-counter drugs. The agriculture bill and other appropriations bills are expected to be brought to the House floor during the final two weeks of July. ********************************************************************************************** AFBF Looking for the Entrepreneur of the Year The American Farm Bureau, in partnership with Farm Credit, is accepting applications through July 31 for the 2021 Farm Bureau Ag Innovation Challenge. The national business competition showcases U.S. startup companies addressing the challenges faced by farmers, ranchers, and the rural communities they live in. The Farm Bureau Entrepreneur of the Year Award increased to $50,000 for 2021’s contest. Farm Bureau will award a total of $145,000 in startup funds provided by contest sponsors. Farm Bureau is looking for entrepreneurs who address both the traditional challenges farmers and rural communities face, as well as business owners tackling new challenges due to COVID-19. “As Farm Bureau members continue to grapple with the impacts of COVID-19, solutions from entrepreneurs are more vital than ever,” says AFBF Vice President Scott VanderWal. Ten startup companies will compete at the AFBF Convention in January of 2021 as semi-finalists. Those teams will be announced on October 5th. Those ten teams then compete to advance to the final round where four teams win an additional $7,500 and compete in front of Farm Bureau members, investors, and industry representatives. Entrepreneurs must be Farm Bureau members to compete. For more information, go to www.fb.org/challenge. ********************************************************************************************** USDA Accepts Over One Million Acres in CRP Grasslands The USDA’s Farm Service Agency says it’s accepted more than 1.2 million acres in the Conservation Reserve Program Grasslands during the recent signup. The number of acres offered during signup was 1.9 million, more than three times the number offered during the last signup period in 2016. Through CRP Grasslands, farmers and ranchers can protect grasslands, rangelands, and pastures, while retaining the right to conduct common grazing practices, such as haying, mowing, or harvesting seed from the enrolled land. The timing of some of those activities may be temporarily restricted by the primary nesting season for birds. “This large and unprecedented enrollment is a reflection of the popularity and the importance of CRP Grasslands,” says FSA Administrator Richard Fordyce. “The program emphasizes support for grazing operations and plant and animal biodiversity while protecting land under the greatest threat of conversion or development.” Participants receive an annual rental payment and may also receive up to 50 percent cost-share for establishing approved conservation practices. The duration of the CRP contract is either 10 or 15 years. FSA ranked the large number of acres offered based on several factors, including the existence of expiring CRP land, threat of conversion or development, existing grassland, and the predominance of native species cover and cost. The 2018 Farm Bill set aside not fewer than two million acres for CRP Grasslands enrollment. CRP turns 35 years old this year and has 21.9 million acres currently enrolled. ********************************************************************************************** Soil Health Partnership Releases Cover Crop Planting Report The Soil Health Partnership’s Cover Crop Planting Report shows that farmers are using diverse strategies to plant their cover crops. They’re also using a variety of plant species to help keep their soils healthier. The partnership is the flagship sustainability program of the National Corn Growers Association. They conducted a detailed survey on cover crops, getting responses from farmers across 11 states in the SHP network about cover crops planted in 2019. “We know farmers in our network are innovators, and there is a huge range of cover crop management practices across our network, depending on the farmer’s management goals, where they are located, their soils, and their cropping systems,” says Dr. Maria Bowan, lead scientist for the Soil Health Partnership. Bowman says the most significant finding was that although more than half of farmers planted their cover crops between the middle of September and the beginning of November, almost 40 percent planted their cover crops before or after those dates. Additionally, 25 percent of the farmers who responded to the survey interseeded or overseeded their cover crop into a standing cash crop. “This means farmers are using a wide range of strategies to get their cover crops out on their fields, especially in the higher latitudes where there are timing and labor constraints to getting a cover crop in after harvest,” Bowman adds. The most widely planted cover crop is cereal rye. ********************************************************************************************** Corn Production Lower, Soybean Ending Stocks Higher in July WASDE The July World Ag Supply and Demand Estimates Report is calling for sharply lower supplies in corn, along with reduced feed and residual use, increased food, seed, and industrial use, as well as lower ending stocks. Corn production is lowered 995 million bushels from June, coming in at 15 billion bushels on a yield of 178.5 bushels per acre, unchanged from last month. Ending Stocks were lower at 2.6 billion bushels. The season-average price is projected at $3.35 per bushel, 15 cents higher than the June report. Soybean ending stocks are 30 million bushels higher than last month at 425 million. Soybean production increased to 4.14 billion bushels, which is 10 million bushels higher on increased harvested area totaling 83 million acres. The yield is unchanged at 49.8 bushels per acre and the season-average soybean price is $8.50 per bushel, up 30 cents from June. The wheat forecast calls for larger supplies, lower domestic use, unchanged exports, and increased stocks. The harvest forecast dropped by 53 million bushels to 1.824 billion. Ending stocks increased to 924 million bushels. The season-average price for wheat is forecast at $4.60 a bushel, unchanged from last month. ********************************************************************************************** Legislation Designed to Improve Price Transparency in Cattle Markets Iowa Representatives Cindy Axne (Ax-knee), Abby Finkenauer (FINK-eh-now-er), and Dave Loebsack (LOBE-sack) introduced legislation in the House that would increase price transparency in U.S cattle markets. It would spur additional price discovery and competition for producers using cash markets. “We must increase price transparency and level the playing field for cattle producers,” says Axne. “We’ve seen significant market disruptions from the fire in Holcomb, Kansas, last year, and more recently from COVID-19, which illustrates the need for this legislation.” The Iowa representatives note that this isn’t a new problem for cattlemen. With the nationwide decreases in cash trades, producers who use the cash markets are bearing the burden of price discovery for the rest of the cattle industry. The bill would require processors to have a minimum of 50 percent of their weekly slaughter purchased from cash market sales. The increase in cash market sales would give independent cattle producers around the country a level playing field with formula-contracted cattle purchases and additional leverage with processors. Iowa producers typically participate in the cash market around 50 percent of the time, while nationwide participation is down as low as five percent in some states. The House bill introduced today is a companion to Senate Bill 3693, which was introduced earlier this year by Iowa Senators Chuck Grassley and Joni Ernst.
| Rural Advocate News | Monday July 13, 2020 |
Washington Insider: New Tariffs for French Goods, but Imposition Delayed At the end of last week, the U.S. announced 25% tariffs on a series of French goods worth about $1.3 billion. The move is part of a long-running battle between the two countries over taxes on technology giants, Bloomberg said. Also, the Office of the U.S. Trade Representative said that it will again delay implementation of the new levies for up to 180 days since France “has not yet started collecting its digital tax.” The administration says the delay is to allowing more time “for ongoing discussions on a global deal at the Organization for Economic Cooperation and Development.” France has held firm on its plans to resume collection of a national digital tax that hits technology giants including Amazon.com Inc., Alphabet Inc.'s Google and Facebook Inc. France says now that it won't “be swayed by threats of U.S. sanctions.” “France's response will be unchanged,” Finance Minister Bruno Le Maire said in Brussels. “If there is no international solution by the end of 2020, we will, as we have always said, apply our national tax.” The U.S. withdrew last month from international talks over a digital-tax deal after failing to reach agreement. An international deal would prevent dozens of countries implementing similar levies. Several European countries – including Austria, France, Spain, Hungary, Italy, Turkey and the UK – have already announced plans for a digital services tax. Many others have discussed implementing one and India expanded a similar levy in April. “We call on the U.S. to return to the OECD negotiations on taxing digital giants,” Le Maire said. “Sanctions are not a way of operating between countries that are friends, as the U.S. and France are.” The announcement sends a clear signal to France and other countries that there are consequences to singling out American tech companies said Clete Willems, a partner at Akin Gump. Still, he added, the tariff delay provides a valuable opportunity to solve this multilaterally. “Both sides need to compromise,” he said. “France needs to back away from trying to tax digital companies before all global service providers and the United States needs to stop insisting that the new rules be optional.” U.S. lawmakers weighed in shortly after the announcement to express their support. The chairman and ranking member of the Senate Finance Committee issued a joint statement on the topic. “Retaliatory tariffs aren't ideal but the French government's refusal to back down from its unilateral imposition of unfair and punitive taxes on U.S. companies leaves our government with no choice,” said the top Republican, Chuck Grassley of Iowa, and Democrat Ron Wyden of Oregon. The administration's decision was widely reported in the urban press and elsewhere. For example, the New York Times noted that the administration undertook a trade investigation into the tax a year ago and concluded in December that the French tax “discriminates against U.S. companies, is inconsistent with prevailing principles of international tax policy and is unusually burdensome for affected U.S. companies.” The report recommended tariffs as high as 100% on certain French imports valued at $2.4 billion, including cheese, wine and handbags. The final recommendation was significantly less punitive, with tariffs at 25% --and wine and cheese dropped from the list entirely. While the United States had initially agreed to work with global counterparts to come up with a unified tax system, other countries have balked at the administration's push for a provision that would effectively allow some American companies to choose whether to be governed by any new system created by a global agreement, the Times said. It also noted that a “growing list of governments have looked to digital taxes of their own as tax revenues plunge during the pandemic recession. Several European countries, led by France, have been rolling out digital services taxes, which would fall heavily on American internet companies. Italy, Spain, Austria and Britain have all announced plans to levy digital services taxes, which impose duties on the online activity that takes place in those countries, regardless of whether the company has a physical presence.” The decision to go ahead with the tariffs on French goods could revive a trade fight between the United States and Europe. The president has already imposed tariffs on foreign steel and aluminum, prompting the European Union to retaliate with its own taxes on American goods. The two governments are also at odds over domestic aircraft subsidies, with the Trump administration taxing as much as $7.5 billion of European exports annually as punishment for subsidies given to Airbus. So, we will see. Taxes on off-shore producers are always very sensitive, and tensions with the EU have been intensifying for some time. This is an issue that producers should watch closely as the season progresses and the fall elections approach, Washington Insider believes.
| Rural Advocate News | Monday July 13, 2020 |
USDA Says 1.28 Million Acres of Land Accepted Into CRP Grasslands Effort USDA accepted offers on 1.28 million acres of land to be enrolled in the Conservation Reserve Program (CRP) Grasslands program, 68% of the 1.88 million acres offered for enrollment. Three states had 100,000 acres or more accepted – South Dakota (377,774 acres), Nebraska (298,890 acres) and Montana (174,314 acres). Contracts under the CRP Grassland enrollment start October 1, 2020. The 2018 Farm Bill set aside no fewer than 2 million acres for CRP Grassland and the agency said that as of October 1, there will be 2.1 million acres enrolled in the effort. There are currently 21.9 million acres enrolled in CRP with contracts on 5.36 million acres set to expire September 30. Earlier this year, USDA accepted offers on 3.4 million acres of ground via a General CRP signup, with contracts starting October 1, 2020. Enrollment under the continuous signup in Fiscal Year (FY) 2020 opened December 9 and runs through August 21.
| Rural Advocate News | Monday July 13, 2020 |
USDA Broadens CFAP Eligibility, But Still Leaves Out Additional Wheat Classes, Eggs USDA announced several additional specialty crops are now eligible for benefits under the Coronavirus Food Assistance Program (CFAP), while others – apples, blueberries, garlic, potatoes, raspberries, tangerines and taro – will see expanded benefits due a price loss that was 5% or greater between mid-January and mid-April. Peaches and rhubarb no longer qualify for the sales loss portion of the payments and USDA also corrected payment rates on several commodities. Producers of the additional commodities determined to be eligible can start signing up for the benefits July 13. USDA did not indicate eggs would be added as an eligible commodity nor that classes of wheat other than hard red spring wheat and durum would be eligible. “USDA is still evaluating comments and will issue another document with additional determinations and payment rates,” USDA said in a Federal Register notice published Friday, noting in a release that additional eligible commodities would be announced “in the coming weeks.” Despite the changes announced this week, USDA said that it “will not change CFAP costs” even as some have speculated the actions will mean the program could run out of money even earlier.
| Rural Advocate News | Monday July 13, 2020 |
Monday Watch List Markets Entering the second full week of July, the latest weather forecasts continue to get first attention among grain traders, followed by any export news. USDA's weekly inspections report is out at 10 a.m. CDT, followed by a U.S. Treasury report on the federal budget at 1 p.m. and the Crop Progress report at 3 p.m. CDT. Weather Monday features a sharp contrast in temperatures over major crop areas. Northern and central regions will have seasonal warmth with favorable crop conditions. Meanwhile, southern regions will have extreme and stressful heat. Heat bulletins cover the far Southern Plains through the Deep South. Periods of thunderstorms are also in store across the northern tier and in parts of the Southern Plains at the edge of the heat dome.
| Rural Advocate News | Friday July 10, 2020 |
Coalition Comes Together to Improve Rural Broadband Infrastructure Minnesota-based farm cooperative Land O’ Lakes announced it has brought together 49 organizations to form the American Connection Project Broadband Coalition. The Hagstrom Report says the coalition’s goal is to “advocate for public and private sector investment to bring high-speed infrastructure to rural areas.” Each of the organizations will contribute some of their resources to help improve access to remote education, health and mental services, job opportunities, and more. Land O’ Lakes says the goal is to connect and lift all American communities through access to modern digital technology. Beth Ford, President and CEO of Land O’ Lakes, says farmers, business owners, and even school children are often on the wrong side of the digital divide in America, a problem that’s only gotten worse since COVID-19 began. “This isn’t just a rural issue,” Ford says. “The American Connection Project Broadband Coalition represents a mix of companies from technology, health care, ag, and more, who understand the ramifications of our country’s broken internet infrastructure. They have the willingness and expertise to help address this need.” The coalition does admit bringing America’s digital divide to an end is a costly goal, but the groups “firmly believe it is worth the investment.” ********************************************************************************************** Trump, Obrador Celebrate USMCA U.S. President Donald Trump and Mexican President Andres Manuel (Man-WELL) Lopez Obrador met in Washington, D.C., this week to celebrate the U.S.-Mexico-Canada Free Trade Agreement. The agreement recently became the law of the land in North America. After multiple meetings among senior officials from both nations, the U.S. and Mexican presidents signed a joint declaration commemorating the July 1st entry-into-force of the USMCA. During remarks to reports, Obrador lamented the North American region’s trade deficit with the rest of the world, which he says totals $611 billion. He’s hoping the USMCA will help North America capture a bigger share of the world economic output, which he says has fallen from 40.4 percent in 1970 to 27.8 percent currently. That statistic reflects China’s rising share of world economic growth over the past half-century. Trump continued his attack on the North American Free Trade Agreement, USMCA’s predecessor, blaming it for lost jobs and low wages. Trump also promoted the labor protections in the new deal, saying it will “bring countless jobs from overseas and back to North America.” ********************************************************************************************** Potato Growers See Mixed Foreign Trade Outlook Ahead International trade experts within the potato industry are happy with the Phase One Trade agreement between the U.S. and China. However, they’re also concerned with the level of potatoes coming into the U.S. from the other direction, noting that French Fry imports from the European Union are rising rapidly. An Intermountain Farm and Ranch article says the export market for U.S. potatoes continues to grow. While COVID-19 has resulted in a reduction of exports, there are still good things ahead in the international markets. For example, the new agreement with China opens up the Asian nation to chipping potatoes from the Pacific Northwest. However, there is some bad news in the international markets. The U.S. is seeing a continued increase in French Fries imported from the EU. Matt Lantz, the vice president of global access at Bryant Christie, says, “There’s been a major surge from the EU, and I say the term very definitely. I do not say dumping. That’s a legal term that’s very hard to prove.” In 2015, the EU sent $12 million worth of fries to the U.S. In 2018, EU exports jumped to $55 million. Last year, the value of those imports was even higher, coming in at $80 million. In the first four months of 2020, the EU has already sent $44 million worth of fries to the U.S. ********************************************************************************************** Additional Commodities Now Eligible for CFAP Ag Secretary Sonny Perdue says additional commodities have been added to the Coronavirus Food Assistance Program. USDA says producers will be able to submit applications that include these commodities beginning on Monday, July 13, with the application period ending on August 28. USDA designed the program to help offset price declines and additional marketing costs brought on by COVID-19. The agency also expects additional eligible commodities to be added to the list in the weeks ahead. “When we announced this program, we asked for public input and received a good response,” Perdue says. “After reviewing comments and analyzing our USDA Market News data, we are adding new commodities, as well as making updates to the program for existing eligible commodities.” A few of the additional commodities eligible for CFAP include beets, blackberries, lettuce, green peas, pineapple, fresh sugarcane, and many more. The changes also include expanded funding options for already-eligible commodities like apples, blueberries, garlic, potatoes, and raspberries. USDA found that these commodities had a five percent-or-greater price decline between mid-January and mid-April because of COVID-19. Originally, these commodities were only eligible for marketing adjustments. They also say peaches and rhubarb no longer qualify for payment under the CARES Act sales-loss category. ********************************************************************************************** Ag Groups to Launch Town Hall Series on the Future of Trade/Supply Chains With major agricultural fairs and other events canceled across the country, major ag groups will provide a series of virtual town halls called “AgTalks.” It’s designed to provide a new forum for farmers, ag businesses, and policy leaders to discuss potential solutions to challenges on trade, supply chains, and global competitiveness. 2020 summer events will be held in Iowa, Minnesota, Wisconsin, Michigan, and Pennsylvania. A few of the groups behind the virtual events include Farmers for Free Trade, the National Milk Producers Federation, the National Corn Growers Association, the U.S. Dairy Export Council, and many others. The AgTalks series will focus on the big challenges that agriculture faces on trade, international supply chains, and staying competitive in the international marketplace. The town hall will be led by ag leaders in each of the five states. In a combined statement, the groups say, “American competitiveness in agriculture has been seriously impacted by the surge in non-U.S. trade agreements with key customers, the trade war, and the failure of supply chains strained by COVID-19. This has impacted commodity pricing, increased input costs, derailed relationships with trading partners, and impacted the broader economy.” The first two dates will focus on Iowa and Minnesota, with specific dates coming soon. ********************************************************************************************** Don’t Leave Dairy Behind in Japan Negotiations A total of 50 members of Congress sent a bipartisan letter to U.S. Trade Representative Robert Lighthizer this week, urging him to work swiftly on a Phase Two Agreement with Japan. The letter was also sent to Ag Secretary Sonny Perdue. They say the recent Phase One agreement with Japan made progress on several important issues, but American farmers and processors remain at a disadvantage against competitors, thanks to the Japan-European Union and the Comprehensive Progressive Agreement for Trans-Pacific Partnership agreements. That’s why Wisconsin Representative Ron Kind and his colleagues are asking Lighthizer and Perdue to maximize opportunities for dairy farmers by addressing these remaining gaps and inequalities in market access during the next round of negotiations. Due to depressed milk prices and a suffering rural economy, dairy farmers are facing tough conditions and struggling to stay afloat. The USDA says 6,000 dairy farms have gone out of business over the last several years, underscoring the need for trade agreements that can expand overseas markets for the U.S. dairy industry. The letter also points out that Japan is one of the top five overseas markets for U.S. dairy products and the demand will only continue to grow.
| Rural Advocate News | Friday July 10, 2020 |
Washington Insider: Increasingly Murky National Outlook Most aspects of the national outlook are increasingly murky these days because so many things are in flux. First, there's the virus; then, there's the economy; then, there's trade policy, and much more. Bloomberg reports on a comment by the Fed's Cleveland bank president, Loretta Mester, who said “recent data on the reaccelerating spread of the coronavirus in the U.S. has raised additional downside risks for the economic recovery. I don't think any of us thought it would necessarily be a smooth path to increasing activity – but the numbers are troubling,” she told Bloomberg. “These are not good statistics.” She cited confirmed cases in the U.S. that crossed 3 million Wednesday as the virus surged across many southern and western states. Examples include Texas that set a record for daily cases, California where hospitalizations hit a new high and Arizona with a record number of deaths. She concluded that news from the virus and health-care front “will likely prove damaging to the economy even if state and local officials don't reimpose restrictions on commercial activity.” Her Atlanta Fed colleague Raphael Bostic made a similar point earlier on Wednesday, telling reporters that more policy action may be needed if the recovery levels off. Still, the Cleveland Fed chief, who is a voter this year on the policy-making Federal Open Market Committee, said she doesn't think the central bank needs to rush into providing fresh guidance on the future path for interest rates and asset purchases. Policy makers lowered the benchmark rate in mid-March to near zero and began large-scale purchases of Treasury and mortgage-backed securities. They also signaled they would keep policy in that setting for an extended period. “The time may come when we want to use forward guidance, but right now I think everyone understands we want to keep interest rates low for a long time,” she said. Once the Fed reaches the point where it concludes that more guidance is needed, its form will depend on circumstances at that time, she said—a position that made Mester appear less enthusiastic than many of her colleagues about embracing a particular strategy for forward guidance in the committee's next one or two meetings. Bloomberg also noted this week that China's top diplomat had blasted U.S. policy toward Beijing – but at the same time, proposed “a blueprint for getting spiraling relations between the world's biggest economies back on track.” “Current U.S. policy toward China is based on strategic misjudgments that lack factual evidence, and are full of emotional catharsis and McCarthy-style paranoia,” Chinese Foreign Minister Wang Yi said during a pre-recorded address for a China-U.S. think tank and media forum. He added that “artificially creating various 'China threats' may eventually lead to self-fulfilling prophecies.” Wang thinks China is willing to resume dialogue mechanisms at all levels with the U.S. at any time and proposed the two countries group outstanding issues into three lists – cooperation, dialogue and differences – with think tanks taking the lead in researching the issues. He also called for cooperation on the coronavirus, saying that China is willing to communicate further on treatment, vaccine research and economic recovery. Already strained ties have gotten worse after China imposed a national security law on Hong Kong, prompting the U.S. to revoke certain trade privileges and threaten sanctions against Chinese officials. The two countries are also sparring on many other things from the South China Sea to technologies like 5G networks. Earlier, the U.S. announced visa restrictions for officials over China's actions in Tibet and Hong Kong, which sparked retaliation from China. The president's national security adviser Robert O'Brien told reporters to expect “a significant roll-out of measures with respect to China over the coming days and weeks.” Wang called the U.S. moves “unreasonable” and said that the two powers should not seek to transform each other. However, U.S. Secretary of State Michael Pompeo on Wednesday continued to slam the Chinese government and President Xi Jinping. He said the U.S. would start a dialogue soon with the European Union on ways to meet the challenge from China. Pompeo held secretive talks last month in Hawaii with top Chinese diplomat and Politburo member Yang Jiechi that failed to stem the attacks on both sides. That meeting showed that Wang's proposals to restart the dialogue were likely “too romantic and too idealistic,” according to Shi Yinhong, an adviser to China's cabinet and a professor of international relations at Renmin University in Beijing. So, we will see. It is certainly true that there are threats of many kinds from many directions – and that it will be difficult to avoid policies that make things worse. Especially as the fall elections come closer, producers should watch these many processes very closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Friday July 10, 2020 |
Eight Candidates To Lead WTO The nomination period for those seeking to become the next Director General of the WTO closed Wednesday with eight candidates – Jesus Seade Kuri (Mexico); Ngozi Okonjo-Iweala (Nigeria); Abdel-Hamid Mamdouh (Egypt); Tudor Ulianovschi (Moldova); Yoo Myung0hee (South Korea); Amina C. Mohamed (Kenya); Mohammad Maziad Al-Tuwaijri (Saudi Arabia); and Liam Fox (UK). The listing of five men and three women all have trade and/or WTO experience. The WTO has not seen a leader from African nor has it been led by a woman, prompting some to up the odds for a candidate that meets those criteria. Mexico's Seade and South Korea's Yoo are also seen by some as top-level candidates given their experience on the world trade front. The WTO is seeking a new leader in the wake of current WTO chief Roberto Azevedo announcing he would leave the post a year early, setting off the process to find a new leader. The next step will be for the candidates to meet with members at a special General Council meeting July 15-17 where they will present their views and take questions from members.
| Rural Advocate News | Friday July 10, 2020 |
Ag Biotech Issues With Mexico, Dairy Access To Canada Raised The Alliance for Trade Enforcement is raising issues on ag biotech in Mexico and Canadian pharmaceutical actions as areas that need to be enforced under the U.S.-Mexico-Canada Agreement (USMCA). The full enforcement of intellectual property (IP) commitments under USMCA is key, the group said in a letter to U.S. Trade Representative Robert Lighthizer. “The Government of Mexico's failure to approve these products threatens both trade with Mexico and U.S. farmers' access to important technologies. This could have a devastating effect on U.S. farmers and their customers in Mexico,” the group said. Dairy issues were also raised by the group, with the letter pointing to Canada's announcement on distribution of dairy tariff-rate quotas (TRQs) “runs counter to various USMCA commitments including discouraging high-value food service or retail products from entering the market.” The group also said they are concerned Canada will not live up to eliminating their Class 7 pricing program and will “manipulate its agreed-upon trade obligations to protect its tightly controlled dairy market are unacceptable.” The group also called out Canada's Patented Medicine Prices Review Board, saying it “continues to develop and implement unfair pricing and reimbursement regulatory schemes that do not fully account for the cost of research and development of innovative treatments.”
| Rural Advocate News | Friday July 10, 2020 |
Friday Watch List Markets After traders check the latest weather forecasts and the U.S. Labor Department issues its report for June producer prices at 7:30 a.m. CDT, grain traders will be watching for USDA's next WASDE report, due out at 11 a.m. CDT. New ending stocks estimates for corn and soybeans after USDA's June 30 estimates of plantings and grain stocks will carry the most interest and wheat crop estimates from around the world will also get a look. Weather Light to moderate rain will form in portions of the Northern and central Plains and the Midwest Friday. Rains will be accompanied by seasonal temperatures, easing crop stress. Meanwhile, the Southern Plains will have dryness and extreme heat with very stressful conditions for cotton, non-irrigated crops, pastures and livestock.
| Rural Advocate News | Thursday July 9, 2020 |
USDA Announces FMD Vaccine Bank Investment The Department of Agriculture Wednesday announced the initial purchase of vaccines for the National Animal Vaccine and Veterinary Countermeasures Bank. USDA’s Animal and Plant Health Inspection Service will invest $27.1 million for foot-and-mouth disease vaccines, which the agency would use in the event of an outbreak. The vaccine bank was created in the 2018 farm bill. USDA awarded a contract to Boehringer Ingelheim to develop and maintain a strategic reserve of frozen vaccine antigen concentrate that the company could quickly formulate into a vaccine for foot-and-mouth disease. Agriculture groups welcomed the announcement. National Pork Producers Council President Howard AV Roth says the investment “is momentous, representing years of NPPC advocacy to ensure U.S. agriculture is protected should we have an FMD outbreak.” National Cattlemen’s Beef Association executive director of government affairs, Allison Rivera, says the move is a “promising first step forward to begin the work authorized in the 2018 farm bill,” but adds “more action is needed to strengthen this newly created vaccine bank.” ************************************************************************************ U.S. and Kenya Begin Trade Talks The United States and Kenya began trade negotiations Wednesday, seeking to enter a free trade agreement. The U.S. Chamber of Commerce applauded the progress, saying a deal could "strengthen and deepen our relationships with economies across the continent” of Africa. Kenya is included in the African Growth and Opportunity Act, which is set to expire in 2025. The U.S. Chamber says a Kenya free trade agreement will provide American businesses the certainty they need to continue investing in the growing market. Agriculture goals for the U.S. include securing full market access for U.S. agricultural goods in Kenya by reducing or eliminating tariffs. Further, the U.S. seeks to eliminate practices that unfairly decrease U.S. market access opportunities or distort agricultural markets for the United States. In 2018, U.S. total exports of agricultural products to Kenya totaled $37 million. Leading domestic export categories were $10 million of coarse grains, $6 million of wheat and $5 million of pulse crops. ************************************************************************************ May Margin Triggers Dairy Margin Coverage Program Payment The Department of Agriculture’s Farm Service Agency announced the May 2020 income over feed cost margin triggered the third payment in 2020 of the Dairy Margin Coverage program. In May, the income over feed cost margin was $5.37 per hundredweight. To date, FSA has issued more than $176 million in benefits to dairy producers who purchased DMC coverage for 2020. Authorized by the 2018 farm bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price, the margin, falls below a certain dollar amount selected by the producer. Over 13,000 operations enrolled in the program for the 2020 calendar year. Although DMC enrollment for 2020 coverage has closed, signup for 2021 coverage will begin October 13 and will run through December 11, 2020. For more information, visit the farmers.gov DMC webpage or contact your local USDA Service Center. ************************************************************************************ Restaurant Traffic Stalls Amid Increase in COVID-19 Cases The recovery of U.S. restaurant customer transactions has stalled for the second week in a row as COVID-19 cases continue to increase in many states, according to research firm NPD Group. For the week ending June 28, total customer transactions at major U.S. restaurant chains are down 14 percent versus the same week a year ago. For the week ending June 21, total transactions were down 13 percent versus a year ago. The rise in COVID-19 case counts is causing local and state authorities to delay reopening, and in some cases, reinstating on-premise restaurant dining restrictions. In Texas, for example, restaurants may continue to offer on-premise dining, but capacity is rolled back from 75 percent to 50 percent. California announced last week the closing of its nearly 86,000 restaurants to on-premise dining. Nationwide, full-service restaurants customer transactions for the week ending June 28 were down 25 percent versus the prior year and several states where COVID-19 is gaining saw the biggest declines in transactions. ************************************************************************************ Poll Reveals Business to Business Exhibitions Move to Virtual Events The Center for Exhibition Industry Research says an increasing number of U.S. business to business exhibition organizers are postponing or canceling events. A June study found 73 percent of organizers have canceled events, 37 percent have postponed, and 17 percent are still scheduled. The trend is evident in agriculture with major events, including the Farm Progress Show and several state fairs, canceling this year. The Center’s CEO, Cathy Breden, says the trend “is devastating to an industry that contributed over $101 billion to the U.S. GDP last year.” The survey found 74 percent of organizers cited uncertainty regarding if meetings would be allowed due to lockdowns. Additionally, 69 percent report corporate no travel policies are impacting participation. The survey found 63 percent of organizers have added a hybrid or virtual component, and 44 percent have a virtual backup plan in the event they are forced to cancel at the last minute. ************************************************************************************ American Soybean Association to Celebrate 100 Years The American Soybean Association will celebrate 100 years of representing farmers next month. ASA was formed when brothers Taylor, Noah and Finis Fouts hosted the first Corn Belt Soybean Field Day at their Soyland Farms operation in Camden, Indiana, in September 1920. The event drew nearly 1,000 farmers and their families from six states. The National Soybean Growers' Association, later renamed the American Soybean Association, was formed that day. On Tuesday, August 4, 2020, ASA, with support from the Indiana Soybean Alliance, will host a 100th-anniversary celebration and historical marker dedication at its birthplace on Fouts Soyland Farm in Camden. The event features a keynote address from Department of Agriculture Deputy Secretary Steve Censky. The event is free of charge. However, attendance is capped at 180, so those interested must register. For those who cannot make it in person, the event will also be live-streamed. Find more details online at ASA100Years.com.
| Rural Advocate News | Thursday July 9, 2020 |
Washington Insider: More Tensions With China While the Trump administration's top officials are sticking with reassuring comments about the future of U.S.-China trade, Bloomberg is increasingly gloomy. It reports this week that “the U.S.-China rivalry is shifting into new and unpredictable areas, engulfing everything from a popular video app to Hong Kong's status as a global financial hub.” The latest tensions are overshadowing a trade agreement in January that was meant to draw a line under the trade war and be a boon for business. Instead, differences between both powers are deepening right at a time when the global economy is facing its worst crisis since the Great Depression, Bloomberg says. It notes that “this week alone,” President Trump said he is considering banning ByteDance Ltd.'s short video app TikTok as retaliation against China over its handling of the coronavirus. Some “top advisers” want the U.S. to undermine the Hong Kong dollar's peg to the greenback to punish China for recent moves to chip away at the former British colony's political freedoms. There are even concerns over the visa status of hundreds of thousands of Chinese students who enroll at U.S. colleges and universities each year. China in turn has promised its own response, warning the U.S. and others to stop interfering in Hong Kong and other issues. The economic backdrop could hardly be gloomier with the IMF estimating that by the end of this year 170 countries – almost 90% of the world – will have lower per capita income. That's a reversal from January, when it predicted 160 countries would end the year with bigger economies and positive per capita income growth. The deepening divisions are forcing difficult decisions for global business. Facebook Inc., Google and Twitter Inc. – all of which have been blocked on the mainland – are at risk of the same fate in Hong Kong. Hours after Hong Kong announced sweeping new powers to police the internet on Monday night, those companies plus the likes of Microsoft Corp. and Zoom Video Communications Inc. suspended requests for data from the Hong Kong government. It's not yet clear how the authorities will respond to that lack of compliance with local rules. ByteDance's TikTok, which has Chinese owners, announced it would pull its viral video app from the territory's mobile stores altogether in the coming days. HSBC Holdings Plc, which draws more than two-thirds of its pretax income from Hong Kong, slumped in Hong Kong trading on Wednesday on fears it would lose out if the administration moves ahead with any plan to punish banks in the city and destabilize the currency peg to the dollar. The expectations are that threats and counter threats will only ratchet up further ahead of the U.S. presidential election in November, with little prospect of a near-term reset. “I don't see any immediate circuit breaker,” said Fraser Howie, author of Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise – certainly not in the sense that there is a reset where everyone says 'weren't we all being foolish, let's get back to being friends.' I don't see that coming any time soon.” And it's not just the world's two biggest economies being affected. India said it will ban 59 of China's largest apps after a deadly Himalayan border clash with Chinese troops that killed 20 Indian soldiers. China warned the UK it will face “consequences” if it chooses to be a “hostile partner” after reports emerged that the government was preparing to begin phasing out the use of Huawei Technologies Co. equipment in the UK's 5G telecommunications networks as soon as this year. Since April, China has imposed crippling tariffs on Australia's barley industry, halted beef imports from four meat plants and urged its tourists and students to avoid going to the nation due to the risk of attacks from racists. The government in Canberra had earlier called for an independent inquiry into the origins of the coronavirus. While economists say it's unlikely that the U.S. would follow through on its threat against the Hong Kong dollar, given the risk of damage to U.S. banks and companies, even the discussion of such a move is unnerving for confidence. “It is a nuclear option, which could result in a financial crisis for Hong Kong, as well as considerable collateral damage for U.S. banks and investors,” said Kevin Lai, chief economist for Asia, excluding Japan, at Daiwa Capital Markets. “It is not impossible, but we think it is unlikely to happen.” The idea of striking against the Hong Kong dollar peg — perhaps by limiting the ability of Hong Kong banks to buy U.S. dollars — has been raised as part of broader discussions among advisers to Secretary of State Pompeo but hasn't been elevated to the senior levels of the White House, Bloomberg News reported. “There is a fast-evolving realignment of forces happening,” Alicia Garcia Herrero, chief Asia Pacific economist with Natixis SA, told the press. “The spiraling threat will remain with us at least until the U.S. election and, very likely, also afterwards. It is just a new paradigm,” she said. So, we will see. Both sides appear increasingly “dug in” on this fight, with much more than economics at stake experts say. The threats and counter-threats appear both significant and real, and should be watched closely by producers as the fight continues, Washington Insider believes.
| Rural Advocate News | Thursday July 9, 2020 |
Sen. Grassley To Push For RELIEF Act To Be Included In Next Stimulus Plan Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said this week he will put to get the Responding to Epidemic Losses and Investing in the Economic Future (RELIEF) for Producers Act of 2020 to be included in the next stimulus plan. It would provide aid to producers forced to euthanize livestock due to lack of access to processing facilities, calculating the value based on the national average market value between March 1 and the date of enactment. The reimbursement would be calculated for a 30-day period starting from the date of initial depopulation. Producers would get 85% of the value of their loss, and the value of losses would be reduced by 10% each 30-day period after that. The plan has also been backed by some House members. Meanwhile, the White House and Senate Majority Leader Mitch McConnell, R-Ky., are both talking of wrapping up another COVID aid plan before the August congressional recess.
| Rural Advocate News | Thursday July 9, 2020 |
CDC Updates Report On COVID-19 Infections, Deaths at Meat And Poultry Plants Confirmed cases of COVID-19 at 239 meat and poultry plants in 23 states in April and May were put at 16,233 with 86 related deaths, according to a report issued by the Centers for Disease Control and Prevention (CDC). Combined with data from a study done through April 27 that included figures from six states that did not report for the updated data, at least 17,358 cases and 91 COVID-19–related deaths have occurred among U.S. meat and poultry processing workers. Where demographic details were available, CDC said 87% of the cases were among racial and ethnic minority workers. CDC said that 12% of the cases were asymptomatic or presymptomatic, but the CDC cautioned that not all facilities performed widespread testing. Of the 239 plants reporting cases, intervention and prevention efforts were reported by 111 of them, with 89 (80%) facilities reported screening workers on entry, 86 (77%) required all workers to wear face coverings, 72 (65%) increased the availability of hand hygiene stations, 70 (63%) educated workers on community spread, and 69 (62%) installed physical barriers between workers. The report said animal slaughtering and processing industry employs an estimated 525,000 workers in approximately 3,500 facilities nationwide. The CDC cautioned that the report findings have limitations, including that not all states responded with information and that the source of exposure and infection could not be identified as coming from the workplace or the community.
| Rural Advocate News | Wednesday July 8, 2020 |
Ag Economy Barometer Shows Some Optimism Farmer sentiment improved again in June as the Purdue University-CME Group Ag Economy Barometer rose 14 points to 117. The barometer's rise was fueled by improvements in both the Index of Current Conditions, which rose to a reading of 99, 19 percent higher than a month earlier, and the Index of Future Expectations, which climbed to 126, 12 percent higher than in May. The improvement in farmer sentiment left the Ag Economy Barometer seven percent below one year earlier, while the Index of Future Expectations was still ten percent below its June 2019 level. However, the Index of Current Conditions was two percent higher than in June 2019, likely reflecting considerably improved spring planting conditions throughout much of the nation, in addition to support from USDA's Coronavirus Food Assistance Program. Four out of ten farmers surveyed said that as a result of concerns about COVID-19, they are conducting more business online, and over half of respondents said they are less likely to attend in-person educational events in 2020. ************************************************************************************ Barchart Releases July Yield Forecast An industry data and technology provider predicts 2020 corn yield at 173.8 bushels per acre for corn and 48.8 bushels per acre for soybeans. Barchart, a technology company that provides market data, released its July yield forecast Tuesday. The report shows an increase in forecasted corn yield relative to the June 2 report, which forecasted end of season yield for corn at 172.4 bushels per acre. There was no change in the soybean yield compared to the June report. Released for free to the public on the first Tuesday of each month during the growing season, the cmdty (commodity) Yield Forecast Index series allows users to get insights to guide their business decisions ahead of the USDA’s WASDE report, due out this Friday. Barchart’s cmdty Yield Forecast Indexes, which correctly predicted 2019 USDA soybean yield figures three months in advance, are calculated using the latest geospatial and remote sensing technology, and provide users with daily insights on over 3,000 individual growing areas in the United States. ************************************************************************************ House Ag Appropriations Committee Approves 2021 Bill The House Agriculture Appropriations Subcommittee approved the fiscal year 2021 agriculture appropriations bill this week. Committee Chairman Sanford Bishop Jr, a Georgia Democrat, says the bill rejects the Trump administration’s drastic cuts and “instead builds on the four COVID-19 supplemental bills Congress passed this spring.” The bill includes total discretionary funding of $23.98 billion, representing a $487 million increase from 2020. Notable features include $4.2 billion for rural development programs, including $1 billion for rural broadband. The bill provides $68.2 billion in required mandatory spending for the Supplemental Nutrition Assistance Program, including $3 billion for the SNAP reserve fund. The bill also includes language to block the Able-Bodied Adults Without Dependents final rule and the Standard Utility Allowance proposed rule. The bill also blocks USDA from granting line-speed waivers at meat processing facilities during the public health emergency. ************************************************************************************ USDA Provides New Crop Insurance Options The Department of Agriculture this week announced changes to several crop insurance policies that the agency says improves options for producers. USDA introduced the Quality Loss Option, a new unit structure assignment option for Enterprise Units and new procedures for Multi-County Enterprise Units. Risk Management Agency Administrator Martin Barbre says the changes “provide producers more flexibility and options” to farmers. The new Quality Loss Option is in response to the 2018 Farm Bill that required the Federal Crop Insurance Corporation to research and develop methods of adjusting for quality losses. The new Quality Loss Option allows producers to replace post-quality production amounts in their Actual Production History databases with pre-quality production amounts, thereby increasing their actual yields for individual crop years. For Enterprise Units and Multi-County Enterprise Units, a new unit structure assignment option was added. Crop insurance is sold and delivered solely through private crop insurance agents. Learn more about the changes at rma.usda.gov. ************************************************************************************ Bill Seeks to Expand Online SNAP Retailers The Expanding SNAP Options Act of 2020 seeks to increase online Supplemental Nutrition Assistance Program participation. Introduced last week by Senators Tammy Duckworth and Dick Durbin, both Illinois Democrats, the bill expands the number of retailers approved for SNAP online. The National Grocers Association supports the legislation, which the organization says, “will be instrumental in helping grocers process online SNAP payments.” Specifically, the bill creates a technical assistance center to support independent grocers and provides grants to retailers who need financial assistance in offering SNAP online. The bill also develops an online and app-based portal for EBT redemption and expands SNAP online to all states nationwide. Senator Duckworth says the bill will “provide grocers of all sizes with the technical assistance needed to ensure all families have the same opportunity to safely purchase groceries online.” Companion legislation is expected to be introduced in the House in the coming days from U.S. Representative Robin Kelly, also an Illinois Democrat. ************************************************************************************ Gavins Point Dam Decreases Missouri River Water Releases Below-normal precipitation in the upper Missouri Basin during June resulted in slightly below-average June runoff. As a result, the U.S. Army Corps of Engineers reduced water releases from Gavins Point Dam to 30,000 cubic feet per second. The 2020 calendar year upper basin runoff forecast, updated on July 1, is 31.2 Million Acre Feet, 121 percent of average. Average annual runoff for the upper basin is 25.8 million-acre feet. While above average, the forecast is welcomed along the Missouri River Basin, plagued by flooding last year. Work continues along the river to repair and improve levees that protect farmland. Much of that runoff was due to wet soil conditions early this spring and snowmelt runoff. John Remus, chief of the U.S. Army Corps of Engineers’ Missouri River Basin Water Management Division, says, “remaining summer runoff will depend on rainfall events.” Soils continue to dry out in the upper Missouri River Basin due to well-below normal precipitation and warmer-than-normal temperatures. And, drought conditions have expanded across much of western portion of the Basin.
| Rural Advocate News | Wednesday July 8, 2020 |
Washington Insider: UK Brexit Trade Outlook The United Kingdom's trade deal with the European Union isn't the only massive project British negotiators must contend with before they quit the bloc at the end of the year. With just months to go ahead of the exit, with or without a deal, Prime Minister Boris Johnson and Trade Secretary Liz Truss are also racing to keep the many trade deals the UK currently maintains as a result of its membership with the EU. All told, there are about 70 of them covering about 15% of the UK's trade, Bloomberg reported this week. The report notes that while Britain has made considerable progress, so-called “continuity deals” with some of the most important countries in that group including Canada, Japan and Turkey have yet to materialize. If the UK leaves the EU with no agreement, it will trade with those 27 countries under terms set by the World Trade Organization. Fresh agreements with the U.S., Australia and New Zealand are also a priority -- one of the main arguments for Brexit was that Britain would be free to pursue better deals unshackled from Europe. “Deals with the likes of Australia, New Zealand and the U.S. likely will mean very small gains in aggregate--and nowhere near enough to make up for the losses that will come from the added trade frictions with the EU,” said Julia Magntorn Garrett, a fellow at the UK Trade Policy Observatory at the University of Sussex. “In terms of continuity deals, it's not so much about gains to GDP, because we already gained from those agreements — it's about mitigating any losses.” The government's own analysis shows that leaving the EU will lead to GDP loss of around 5% in the long term even with a free-trade agreement in place. A pact with the U.S. would only add a fraction of that to UK growth. Asked about the government's figures showing only minimal benefits from the accords, Truss told a panel of lawmakers recently that because the deals haven't been negotiated yet “their upside could in fact be larger than the calculations now suggest.” However, the downside also could come into play as the economic carnage wrought by the pandemic and the ensuing collapse in global trade could prove problematic. “In this climate, it's possibly going to be even more difficult,” said Swati Dhingra, a fellow at the Centre for Economic Performance, a research group at the London School of Economics. “People are going to be thinking of job creation in their own countries. There's going to be less of a coming-together around the negotiating table.” With the UK set to face the worst economic fallout from the pandemic among developed economies, “Johnson could use some wins,” Bloomberg says, “but it won't be easy.” While the EU and U.S. usually limit their trade negotiations to two or three major agreements at a time, Britain is now pursuing almost a dozen at once. “Even if you were an incredibly experienced negotiator it would be a really tough job,” said James Kane, an associate working on trade policy at the Institute for Government, a think tank in London. Bloomberg reports some details on how the UK's non-EU negotiations are going so far, and focuses on the U.S., EU talks — with the U.S. already Britain's largest bilateral trading partner and trade between the two worth $270 billion in 2019. Still, in March, the British government estimated that a comprehensive free-trade agreement with the U.S. would only have modest benefits for the UK economy -- a 0.16% increase in GDP over the next 15 years, and a 0.2% increase in real wages. A priority for the UK in the negotiations is tariff elimination, Bloomberg says. The U.S. has imposed punitive levies on British goods in recent years, including steel, aluminum and Scotch whisky, many in retaliation to EU subsidies for Airbus SE. Britain is also hoping to open up the U.S. market for services trade, such as in the digital and financial sectors, where the UK is strong. The two sides have completed two negotiating rounds so far, with the next slated for late July. Truss has said there is no deadline for reaching a deal and that talks are progressing well. The top U.S. negotiator recently downplayed chances of a deal this year. A key obstacle will be disagreements over agriculture. The U.S. sees greater market access for its food exports as a big prize, whereas the British government is under pressure not to allow standard U.S. products like chlorine-washed chicken and hormone-treated beef into the country. So, we will see. The administration's “get tough” tariff policy is still prominent for the administration's election hopes, and the UK Green Party's “anti-industrial” food policies likely will be very difficult to dislodge. As a result, it is difficult to see much opportunity for bridging wide gaps in important U.S.-UK policies. However, these talks involve high stakes and should be watched closely as they proceed, Washington Insider believes.
| Rural Advocate News | Wednesday July 8, 2020 |
Business, Commodity Groups Urge China, US to Meet Phase One Terms Scores of business and other groups, headed by the U.S. Chamber of Commerce, urged U.S. and Chinese officials to work together to meet commitments under the phase one trade agreement between the two countries. While noting the benefits from increased two-way trade between the two countries, the groups said, “We also believe that a successful implementation of Phase One will be critical to subsequent negotiations of a Phase Two Agreement.” The groups outlined a series of gains that have already been realized under the trade deal, including several of the changes enacted under the ag provisions of the deal that removed market access barriers for some U.S. products, and an annex to the letter sent to U.S. and Chinese officials calling the ag actions “among the most substantial 'early harvest' achievements to date since the agreement's implementation.” But they urge more Chinese purchases of all ag products covered under the agreement and to “advance reforms to the agricultural biotechnology process to improve transparency, reduce approval timelines to 24 months on average, and limit scope of data requirements to only information needed to assess the safety of a product for its intended use.” The groups sent the letter to Treasury Secretary Steve Mnuchin, U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He.
| Rural Advocate News | Wednesday July 8, 2020 |
Agriculture Trade Deficit Strikes New Monthly Record The value of U.S. ag exports fell 3% to $10.34 billion in May while imports were just 0.3% lower at $11.38 billion, leading to a record monthly trade deficit for the sector of $1.03 billion. The prior record was a trade gap of $842 million registered in April 2019. Cumulative U.S. ag exports are valued at $92.27 billion after eight months of Fiscal Year (FY) 2020 against imports of $89.4 billion for a trade surplus of $2.86 billion. USDA is forecasting the value of U.S. ag exports at $136.5 billion in FY 2020 against imports of $130.2 billion which would leave a trade surplus of $6.3 billion. To meet those targets, U.S. ag exports would have to average $11.06 billion for the remaining four months of FY 2020 while imports would have to be just $10.2 billion. Exports have averaged $11.53 billion so far in FY 2020 with imports at $11.18 billion and if they were to match those levels the final four months of FY 2020, that would put exports at $138.4 billion against imports of $134.1 billion.
| Rural Advocate News | Wednesday July 8, 2020 |
Wednesday Watch List Markets The latest weather forecasts continue to dominate trader interest in grains with any news of export sales a close second. The U.S. Energy Department will post its weekly inventory data, including ethanol at 9:30 a.m. CDT. Weather Hot and dry conditions will cover the Midwest through the central and Southern Plains Wednesday. This combination will be stressful for crops, especially in driest areas of the eastern Midwest and southwestern Plains. Rain will be confined to light to locally moderate activity in the far northern Midwest and in the Southeast.
| Rural Advocate News | Tuesday July 7, 2020 |
Production Challenges, Economic Headwinds Slow Red Meat Exports in May U.S. beef and pork exports trended lower in May, due in part to interruptions in slaughter and processing. The U.S. Meat Export Federation reports beef exports dropped well below year-ago levels and recorded the lowest monthly volume in ten years. Pork exports remained higher than a year ago but were the lowest since October 2019. Packing plant disruptions caused by COVID-19 resulted in the lower exports. May beef exports were down 33 percent from a year ago to 79,200 metric tons, with value falling 34 percent to $480.1 million. May pork exports totaled 243,800 metric tons, 12 percent above a year ago but down 13 percent from the monthly average for the first quarter of 2020. Export value was $620.9 million, up nine percent year-over-year but 16 percent below the first quarter monthly average. However, improvements are expected. USMEF President and CEO Dan Halstrom says, “Now that production has substantially recovered, the U.S. industry is better able to meet the needs of both domestic and international customers.” ************************************************************************************ RELIEF Act Would Support Livestock and Poultry Producers A group of Senators last week introduced the Responding to Epidemic Losses and Investing in the Economic Future for Producers Act of 2020. Known as the RELIEF Act, the legislation would provide relief to livestock and poultry producers amidst the coronavirus pandemic. The bill would support producers that are faced with euthanizing their animals due to COVID-19. The legislation also provides resources for animal health laboratories as they develop solutions to defend against emerging animal disease spread. Finally, the bill gives additional authority to the Department of Agriculture through the existing Commodity Credit Corporation Charter to deal with removal and disposal of livestock for any public health emergency moving forward. The bill was introduced by Iowa Senators, Republicans Chuck Grassley and Joni Ernst, along with Oklahoma Republican Senator Jim Inhofe, and Republicans Thom Tillis and Richard Burr, both of North Carolina. Grassley says the bill "will provide much-needed assistance to farmers who had to depopulate their livestock through no fault of their own.” ************************************************************************************ Bill Would Allow State-inspected Meat Sales Across State Lines New legislation introduced in the House of Representatives would allow state-inspected meat sales across state lines through e-commerce. The bill was introduced last week by South Dakota Republican Representative Dusty Johnson and Texas Democrat Henry Cuellar(quay-are). The bill allows small producers and processors more options to directly market to consumers. The legislation, according to Johnson, "cuts through red tape" and allows sales of normal retail quantities of state-inspected meat online to consumers across state lines. The bill also allows new direct-to-consumer options for producers, processors and small meat markets, and maintains traceability of sales easily accessed in the event of a recall. The bill is supported by the National Cattlemen’s Beef Association, American Farm Bureau Federation, American Sheep Industry Association, and the U.S. Cattlemen’s Association. NCBA President Marty Smith says the bill "helps make it easier for the American cattle producer to meet the growing demand of the American consumer to purchase safe and delicious U.S. beef.” ************************************************************************************ USDA Seeks Input on RFID Eartag Proposal The Department of Agriculture is seeking public comment on the transition to RFID only ear tags. USDA’s Animal and Plant Health Inspection Service wants the public input on the proposal where APHIS would only approve RFID as the official eartag for use in interstate movement of cattle that are required to be identified by the traceability regulations. An official eartag is defined as an identification tag approved by APHIS that bears an official identification number for individual animals. Regulations allow APHIS to approve tags that can be used as official identification, and both metal and RFID tags are current options. USDA says a transition to RFID tags would support APHIS' ongoing efforts to increase animal disease traceability by more accurately and rapidly allowing animal health officials to know where affected and at-risk animals are located. APHIS is also seeking comments on a proposed timeline for implementation. Public comments will be accepted through the Federal Register until October 5, 2020. ************************************************************************************ China Says G4 Swine Flu Not New China says a recently reported strain of swine flu is not a new virus. China’s Ministry of Agriculture over the weekend stated the G4 swine flu strain is not new and does not sicken humans and animals easily. The claims rebuff a study published last week, according to Reuters. China’s agriculture ministry said in a statement that the study has been interpreted by the media “in an exaggerated and nonfactual way.” The study was published in a U.S. scientific journal warning the new swine flu virus “has become more infectious to humans and could become a potential pandemic virus.” The U.S. Centers for Disease Control says the G4 strain has been spreading in China since 2016 and has become the predominant genotype found in Chinese pigs. The scientific report last week claims the virus has the “right characteristics for causing infections in people.” However, only two human infections with G4 viruses have previously been reported. ************************************************************************************ Gas Prices Fall Over Holiday Weekend For the first time in ten weeks, the national average price of gasoline has fallen, posting a drop of 1.2 cents per gallon over the last week to $2.17. The national average price of diesel has increased 0.6 cents and stands at $2.42 per gallon over the same period. Patrick De Haan of GasBuddy says the nation experiences a drop in fuel demand last week from COVID-19 cases surging in some states. De Haan says, “it’s possible that if things don’t improve much by Labor Day, we could see the rare trifecta of every summer holiday setting multi-year lows.” Crude oil prices have seen little overall change over the last week. Crude oil prices remain in limbo, along with gas prices, as the next chapter in the coronavirus situation remains murky. With some states seeing a resurgence and early signs of a slowdown in gasoline demand recovery, oil prices haven’t been able to muster additional steam to rally.
| Rural Advocate News | Tuesday July 7, 2020 |
Washington Insider: Comments on Spending Bills and the Economy Some things are almost eternal, including Congressional fights over spending. Bloomberg is reporting this week that House Democrats plan to fight President Donald Trump on numerous issues, including World Health Organization funding, military bases named after Confederate officers, border wall money and limits on food stamp eligibility, as fiscal 2021 spending negotiations ramp up. And, Bloomberg notes, “that's just the first three of their 12 annual appropriations bills.” Democrats released their State and Foreign Operations, Agriculture-FDA, and Military Construction-VA spending measures this week and plan to quickly complete subcommittee markups. To nobody's surprise, “the contents of the bills foreshadow a difficult path” to funding the government during a presidential election year, pandemic, and nationwide civil-rights debate, the report says. House appropriators plan to hold subcommittee markups this week for Homeland Security, Interior-Environment, Legislative Branch, Energy and Water, and Labor-HHS-Education. Finally, they're also scheduled to release this week their Commerce-Justice-Science, Transportation-HUD, Financial Services, and Defense bills ahead of “midweek” markups. Senate appropriators, meanwhile, are “stuck” less than three months before the Sept. 30 deadline to fund the government. Democrats have said they want to offer amendments on the coronavirus response and the national outcry over police violence, issues Republicans believe are so controversial they'd ruin any chance of bipartisanship. Due to the stalemate, the chamber's appropriators haven't released any bills or scheduled markups. Bloomberg lists several “major takeaways” from the first three House Democratic appropriations bills, and begin by noting the funding proposed for the World Health Organization, which would force the president to send $200 million to the organization despite his plan to cut off payments. The Agriculture-FDA bill would block the administration's rule limiting Supplemental Nutrition Assistance Program eligibility for able-bodied adults without dependents. It would also undo line-speed waivers for meat and poultry processing plants. The federal government in April approved a record number of line-speed waivers for poultry slaughterhouses in a single month--which worker-safety advocates and unions have said increases the risk of on-the-job injuries. In addition, the House Military Construction-VA spending bill would bar funds for installations named after Confederate officers, a move that doubles down on a provision in the annual defense policy measure that would require officials to rename some military bases. That bill also would also bar funding for a wall on the southern U.S. border, and block the administration from funding military construction projects where money has been reprogrammed to build border barriers. The bill's $581 million Base Realignment and Closure fund includes $200 million for cleanup of per- and polyfluoroalkyl substances, often called “forever” chemicals, including Perfluorooctane Sulfonate and Perfluorooctanoic Acid contamination. In addition to its reporting on spending legislation, Bloomberg reports that CBO now expects lower real GDP from late 2019 to late 2020, reflecting its revisions to previous estimates of a slower economic bounceback in the second half of this year. Fourth-quarter real GDP is now projected to fall 5.9% in 2020, before increasing 4.8% in 2021, CBO said last week. It had projected in May real GDP would fall 5.6% from late 2019 to late 2020. The current outlook is mostly similar, “except that economic growth in the second half of 2020 is now projected to be slower,” CBO said. Real, inflation-adjusted GDP is expected to recover to its pre-pandemic level by mid-2022, CBO said, but that the unemployment rate likely will not return “to its late 2019 level of 3.5% for much of the coming decade. It's expected to be 10.5% at the end of 2020 and 7.6% in late 2021, CBO said. The projections are “surrounded by an unusually high degree of uncertainty” due to the coronavirus, the report says. So, we will see. There is little that is surprising in most of these fights, although the outcome seems increasingly difficult to forecast, as CBO notes. Certainly, the pre-election politics is bitter and controversial, and will intensify until the fall election, and beyond, and should be watched closely by producers as it emerges, Washington Insider believes.
| Rural Advocate News | Tuesday July 7, 2020 |
Japan Boosts Port Inspections For Some US Commodities Japan has increased port inspections for seven U.S. commodities due to COVID-19. Japan has temporarily increased on-arrival inspections for fresh cherries, mangoes, papayas, nectarines, prunes, fresh potatoes and hay, according to a report from USDA's ag attache in Tokyo. Before COVID-19, Japan used annual on-site phytosanitary inspections for certain U.S. ag exports. “During these inspections, Japanese inspectors travel to the United States to verify that production sites are free of quarantine pests of concern for Japan,” the report said. “Due to COVID-19-related travel restrictions, Japanese inspectors have not been able to visit the United States to carry out on-site inspections in the 2020 growing season.” The increased inspection rates will stay in place until inspectors can travel to the U.S. without restrictions, the report said.
| Rural Advocate News | Tuesday July 7, 2020 |
Soybean Growers Join Calls for EPA to Reject Retro Refiner Exemptions The American Soybean Association (ASA) has become the latest group to call on EPA Administrator Andrew Wheeler to reject 52 pending retroactive Small Refinery Exemption (SRE) requests and apply a 10th US Circuit Court decision curbing the granting of the waivers. “The approval of these gap filings would deal a devastating blow to soybean farmers and biodiesel producers by stifling demand for biodiesel,” wrote ASA President Bill Gordon. “Simply put, protecting the RFS is a priority of our organization. We urge you to consider the perspective of the soybean farmer as EPA addresses this gap filing issue.” ASA said prolonged uncertainty in the biofuel sector created by the SRE issue “continues to stifle investment in American biofuels, destabilize agriculture markets and hurt U.S. soy growers, who are already grappling with supply chain disruptions due to COVID-19, the U.S.-China trade war, and other causes of instability.”
| Rural Advocate News | Tuesday July 7, 2020 |
Tuesday Watch List Markets There are no official reports scheduled Tuesday, but the market will maintain interests in the latest weather forecasts and any trade news that might develop. Monday afternoon's Crop Progress report will be considered and expectations will build for USDA's next WASDE report on Friday, July 10. Weather Tuesday features light to moderate rain for portions of the northern Midwest and broad coverage of showers and thunderstorms along the Gulf Coast. Dry and very warm to hot conditions are in store elsewhere. We continue to see notably stressful conditions over the eastern Midwest as corn moves into the pollination phase.
| Rural Advocate News | Monday July 6, 2020 |
Wheeler Talks About Gap-Year SREs Environmental Protection Agency Administrator Andrew Wheeler talked about the 52 gap-year Small Refinery Exemption petitions awaiting the agency. The 52 applications cover the years 2011-2018. There are 27 more SRE applications for 2019 and one for 2020. All the applications are in the hands of the Department of Energy for review. The 52 applications were sent in earlier this year by refiners after a Court of Appeals ruling earlier this year in the Tenth Circuit. A DTN report says the biofuels industry and supportive lawmakers are in the middle of a public relations campaign to encourage the EPA to reject all of the applications. Some of the petitions that go as far back as 2012 have renewable identification numbers for that year which have expired. Wheeler says that means there are several potential problems with the petitions. “So, there are questions about whether they can show economic harm and what the remedy would be,” Wheeler says. “First, we’re waiting to see what the Department of Energy has to say about the small refinery exemptions.” ********************************************************************************************** USMCA Kicks in Under a Cloud of Disagreements A modernized North American trade pact officially took effect last week, providing some continuity for manufacturers and agriculture. Reuters says the U.S.-Mexico-Canada Trade Agreement is facing multiple disputes that still need to be resolved, exposing cracks in what was supposed to be a stronger North American “fortress of competitiveness.” The deal takes effect with all three countries mired in a COVID-inspired recession. April trade flow of goods between the countries is normally about $1.2 trillion every year, but the disease cut trade to its lowest monthly level in ten years. The Trump Administration is currently threatening to implement new tariffs on aluminum imports from Canada. Issues currently nagging at the USMCA also include hundreds of legal challenges to Mexico’s new labor laws that ensure workers can freely organize and grant unions full collective bargaining rights. U.S. Trade Representative Robert Lighthizer calls the agreement the most “far-reaching” trade agreement in history. However, he also says he won’t hesitate to file dispute cases “early and often” to enforce USMCA provisions. He says Mexico’s failure to approve U.S. biotech products is an example. ********************************************************************************************** Hemp Growers Looking to Establish Checkoff The National Industrial Hemp Council and the Hemp Industries Association entered into an agreement to look into the possibility of establishing a marketing checkoff program for hemp. “Today is another step forward in the right direction for hemp farmers and consumers of hemp-related products,” says Patrick Atagi (Ah-TAH-gee), board chair of NIHC. “A checkoff program would further legitimize a rapidly growing industry and will help hemp farmers compete on a level playing field with producers of other agricultural-related commodities.” Rick Trojan, President of the HIA, says, “This first-of-its-kind agreement creates a focus on gathering data and distributing education as hemp cultivation expands nationally.” The Hagstrom Report says the two organizations will form a working group with representatives from across the industry to discuss the details on how a hemp checkoff program should be structured and operate. The working group’s effort would guide the eventual proposal to USDA that will include industry analysis, the justification for the program, program objectives, and the impact on small businesses. The 2018 Farm Bill legalized hemp production in the U.S. and was signed into law by President Trump after the legislation made it through both chambers of Congress. ********************************************************************************************** USDA Reminding Producers to Complete Crop Acreage Reports Producers who haven’t completed their crop acreage reports after spring planting should make an appointment with their local Farm Service Agency office before the applicable deadline. July 15th is the major deadline for most crops, but acreage reporting deadlines vary by county and by crop. “The first step to becoming eligible for many USDA programs is to file an accurate crop acreage report,” says FSA Administrator Richard Fordyce. “To file your acreage report, call your local FSA office to make an appointment.” Due to COVID-19, FSA put reporting flexibilities in place. The agency can work with producers to file timely acreage reports by phone, email, and online tools, as well as virtual meetings. You must call ahead to those offices that are open for in-person appointments. After all of the completed maps and acreage reporting information is received, FSA will make software updates and send producers the completed Report of Acreage form to sign. Producers must return the signed form certifying their acreage report to the FSA as soon as possible. ********************************************************************************************** Dairy Supply Chains Need to Adjust to Changing Conditions COVID-19 is dramatically affecting consumer habits and dairy supply chains as food service demand plummets and grocery sales take off. Consumers struggling with job losses and economic uncertainty quickly returned to buying basic dairy products like fluid milk, commodity cheese, and butter. A new report from CoBank’s Knowledge Exchange indicates that consumer behavior will be different for the next 12 to 18 months than it was before COVID-19. As that behavior begins to become a habit, dairy supply chains will need to adjust from the farm to the fork. “The dairy industry is coping with some new realities, largely driven by the decrease in foodservice demand and restaurant sales,” says Tanner Ehmke, manager of CoBank’s Knowledge Exchange. “The challenges for dairy supply chains will be adapting to focus on meeting the demand trends based on evolving consumer behavior as we navigate through an uneven reopening.” Consumers increased their purchases of products that had fallen out of favor in recent years. For example, processed cheese sales increased by 20 percent during the eight weeks ending on May 31. White milk sales gained more than 10 percent during the same period. ********************************************************************************************** Farm Bureau Looking for “Farm Dog of the Year” Nominations The American Farm Bureau is inviting farmers to submit nominations for the 2021 Farm Bureau Farm Dog of the Year contest. This is the third year of the contest that celebrates farm dogs that work alongside farmers and ranchers to produce nutritious food for families and their pets across America. The grand prize winner gets a year’s worth of Purina dog food and $5,000 in prize money. The winner gets recognized at a Farm Dog of the Year award ceremony at the AFBF Convention coming up in January. Up to four regional runners-up will get $1,000 each in prize money. “We’re pleased to continue this award, which provided a great point of connection for the general public to get a glimpse into farm life,” says AFB President Zippy Duvall. “It’s especially appropriate after a year of unprecedented challenges in agriculture to recognize the dual role farm dogs play as both working dogs and companions to farm families.” Farm dog owners must be Farm Bureau members to enter their dogs in the competition. Owners can find more information at www.fb.org.
| Rural Advocate News | Monday July 6, 2020 |
Washington Insider: Prolonged Battle Over Unemployment Benefits The Hill reported last week that the generous expansion to unemployment insurance Congress passed to keep Americans afloat during the COVID-19 crisis is due to run out at the end of the month, “potentially leaving millions of people struggling.” Unemployment remained at 11.1% in June, worse than it was at the height of the Great Recession in 2009. At the heart of the discussion is a recent federal policy that adds a flat $600 to every weekly unemployment check through the end of July. “It would be unconscionable for Republicans to allow supercharged unemployment benefits to expire with the unemployment rate above 11% and 2.3 million new unemployment claims just this week,” Senate Finance Committee Ranking Member Ron Wyden D-Ore., said Thursday. Republicans, however, argue the $600 benefit has at best outlived its usefulness and may have been hampering the recovery all along. The Democratic-controlled House passed the HEROES Act in May, which would extend the extra unemployment payment for another six months, along with other measures such as aid to state and local governments. The GOP-controlled Senate, however, said the $3 trillion legislation overshot the mark. The unexpectedly strong June jobs report, which saw a record one month increase of 4.3 million jobs, may convince them less help is necessary. Negotiations weren't even set to begin until after the July recess, leaving four weeks for the two chambers to hammer out and pass an agreement. The debate over the $600 figure gets at the complexity of a patchwork system of unemployment benefits across all 50 states. It also highlights the vastly uncertain path that the economy faces in the coming months, a path closely linked to efforts to contain the coronavirus. Congress settled on an extra $600 in unemployment benefits in the CARES Act passed in March because it filled the gap between the average weekly unemployment insurance payout across the country and the average salary, while allowing states to more quickly dole out the aid. Most unemployment insurance is designed to cover just a fraction of a worker's salary as an incentive for people to find new work quickly. But the state-to-state variation in benefits makes the design of an equitable intervention difficult. The $600 addition isn't adjusted for inflation or previous wage levels, meaning that some people are earning more on unemployment than they were at work. “Despite mounting evidence of the problems these extra payments are causing, the House passed a bill recently to extend them, not just for a month or two, but for another six months, through January 2021,” Senate Finance Committee Chairman Chuck Grassley R-Iowa, said at a contentious hearing on unemployment last month. The nonpartisan Congressional Budget Office estimated that if the policy were extended for six months, the overall economy would be better through the end of the year, but by 2021 both the economy and unemployment could be worse, as people separated from the labor market took longer to find jobs. Conservative groups have amplified the message. But in the same hearing, Wyden said Congress had little choice because unemployment programs differ so widely. A more precise policy to block recipients from earning more than their previous salaries, he said, would be impossible to implement quickly. Local unemployment offices contacted by The Hill said “they might take as much as six to nine months to set up a wage replacement program.” A Grassley spokesperson didn't offer specific alternatives, but pointed to the strong June jobs report and noted that further coronavirus relief legislation would need to address any ongoing problems “in an effective manner and encourage further job growth.” Still, economists say that the jobs report also points to an extended unemployment crisis. And, CBO last week projected that unemployment would remain above 10% by year's end and wouldn't fall back below 5 percent until 2025, The Hill said. Left-leaning economists are also warning that a steep shortfall in state and local budgets will lead to a tsunami of new layoffs in the new fiscal year, which for states began this week. “Without massive additional federal aid, austerity is certainly on the horizon for state and local governments, because state and local tax revenues are plummeting,” wrote Elise Gould and Heidi Shierholz, economists at the Economic Policy Institute. “This means losses in public sector services, including cuts to school budgets at a time when schools are already struggling with the increased need for creative options for students,” they added. One idea that Republicans may embrace is leaving some level of expanded unemployment in place, but letting people keep some of the extra benefits if they get a job, but the final package remains far from certain, The Hill said. So, we will see. The enormous cost of the proposed interventions is increasingly unsettling to politicians, but so is the prospect of severe and prolonged high unemployment. Certainly, this is a debate producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Monday July 6, 2020 |
Trump to Meet With Mexican President This Week President Donald Trump plans to meet with his Mexican counterpart Andres Manuel Lopez Obrador Wednesday at the White House. The two will celebrate the U.S.-Mexico-Canada Agreement (USMCA) taking effect. Trump said in a statement he would discuss “trade, health, and other issues central to our regional prosperity and security” with Lopez Obrador on July 8. The Canadian government has not confirmed whether Prime Minister Justin Trudeau will join the other two North American leaders in Washington. Meanwhile, as USMCA took effect last week, the Office of the U.S. Trade Representative (USTR) and the Labor Department detailed the names of the six Americans with backgrounds on labor issues who will serve on the agreement's “rapid response labor mechanism” to investigate alleged labor rights violations. USTR also announced the names of 10 individuals who will sit on dispute settlement panels to hear other disputes brought by governments under the pact. Those include U.S. Trade Representative Bob Lighthizer's close ally and former USTR general counsel Steven Vaughn.
| Rural Advocate News | Monday July 6, 2020 |
Hurdle For EPA Nominee Is Getting Higher Earlier this week, Sen. Joni Ernst, R-Iowa, said she would not back the nomination of Doug Benevento to be deputy EPA administrator until EPA until EPA says how it will handle the 52 retroactive small refinery exemptions (SREs) that it has received for prior compliance years going back to 2011. Now Sen. Ted Cruz, R-Texas, said he will not let Benevento's nomination move forward until EPA provides relief for refiners on Renewable Identification Numbers (RINs). "The price of RINs has more than quadrupled since the beginning of the year, and now sits around $0.50,” Cruz said in a statement. “These sky-high prices coupled with the energy and economic crises caused by the coronavirus pandemic have wreaked havoc on America's small refineries and blue-collar workers.” Until EPA Administrator Andrew Wheeler “delivers on his promise to take actions that help bring stability to the price of RINs, I will not allow this nomination to move forward,” Cruz concluded.
| Rural Advocate News | Monday July 6, 2020 |
Monday Watch List Markets Back from July 4th weekend, traders will catch up on Monday's latest weather forecasts and any trade news. USDA's grain inspections report is set for 10 a.m. CDT and Crop Progress follows at 3 p.m. with extra attention on the latest crop rating updates. Weather Monday will be hot and dry over the Midwest and most of the Plains. This combination is stressful to pollinating corn. Rain will be confined to thunderstorms in the Northern and far southeastern Plains along with the Gulf Coast.
| Rural Advocate News | Thursday July 2, 2020 |
USMCA Fully Implemented in North America The new U.S. trade deal with Mexico and Canada is officially in force. The U.S.-Mexico-Canada Trade Agreement replaces the 26-year-old North American Free Trade Agreement and brings to a close President Donald Trump’s threat to break apart the three-nation, $1.4 trillion free trade zone. Politico says officials in all three countries are celebrating that the deal is taking effect as each nation looks for some certainty during the COVID-19 outbreak. However, there are some tensions brewing between the U.S. and Canada regarding aluminum. President Trump recently threatened to reimpose tariffs on imports of aluminum from Canada. The U.S. could impose a ten percent duty if Canada doesn’t agree to quotas to help slow the surge of its aluminum exports, which would likely bring a retaliation from Ottawa. Business leaders have been quick to ask the U.S. President not to reimpose the tariffs as they celebrate USMCA. South of the border, some of the biggest issues are between the U.S. and Mexico. U.S. Trade Representative Robert Lighthizer says he expects fights with Mexico regarding labor, biotechnology, intellectual property, and energy. The Trump administration, Democrats, and labor unions will all be paying close attention to see if Mexico lives up to its labor requirements. ********************************************************************************************** U.S. Ag Groups Relieved USMCA is Officially in Effect Ag groups in the U.S. are breathing a sigh of relief as the U.S.-Mexico-Canada Trade Agreement goes into full effect. “The agreement solidifies our country’s most important and strategic relationships with our best customers and promises further economic growth in tandem with our most valuable trading partners,” says Darren Armstrong, Chair of the U.S. Grains Council. American Soybean Association President Bill Gordon says Mexico and Canada are two of their biggest markets, noting that “USMCA is a win for U.S. soybean farmers and it restores certainty and stability to two important export markets for our farmers.” Doug Goyings, Chair of United Wheat Associates, says, “We see this as an opportunity to take a gold-standard agreement and use it to launch negotiations with other countries.” The American Feed Association says, “Our northern and southern neighbors have a huge impact on the animal food industry, as Mexico and Canada represent the country’s largest and second-largest export markets for feed, feed ingredients, and pet food, respectively.” The Fertilizer Institute says the USMCA is “an emphatic win for agriculture and the millions of hard-working men and women who grow our food, fuel, and fiber.” American Farm Bureau President Zippy Duvall says, “The launch of USMCA brings optimism to the country’s farmers and ranchers at a time when they need it most.” ********************************************************************************************** Groups Request Hearing on Livestock Reporting Rule The U.S. Cattlemen’s Association, the National Farmers Union, along with 11 other groups sent a letter to the Senate Ag Committee requesting a hearing on livestock mandatory price reporting reauthorization. The Livestock Mandatory Reporting Rule, first established in 1999, mandates price reporting for cattle, boxed beef, swine, and lamb. It’s reauthorized every five years, with the current program expiring on September 30 of this year. The 13 groups say it represents an opportunity to make meaningful change to the program to increase transparency and true price discovery. According to a 2019 Congressional Research Service report, a common mistake among industry stakeholders is “the low volume of negotiated purchases and a parallel trend toward increased formula purchases or other marketing arrangements. Other concerns include confidentiality and a lack of clarity on how transactions are categorized in reports.” USCA and the other groups strongly urge the Senate Ag Committee to examine all available solutions to the current market factors depressing livestock prices and the increasing consolidation facing the U.S. cattle industry. They say the industry is running out of time to work towards a positive reauthorization of the program. USCA says the livestock industry requires “bold leadership to realign the marketplace with its fundamentals, and that starts with modernizing the Livestock Mandatory Reporting Program.” ********************************************************************************************** Democrat Plan for “Climate-Friendly” Farming Gets Mixed Reaction The House Democrats’ climate change committee released an ambitious framework for slashing greenhouse gas emissions to net-zero by 2050. The National Sustainable Agriculture Coalition says those plans include agriculture playing a key role in the goal. The emission cutting would be achieved in part by ramping up conservation programs for ag producers that cover just a fraction of the country’s farmland. The plan will be pushing a lot more money into “climate-smart” agricultural practices, such as making climate adaptation and mitigation a specific goal of federal farm policy. Other steps include creating a “Climate-Based Producer” certification for farmers, as well as developing feed additives that can lower methane emissions from livestock farms. The Sustainable Ag Coalition applauds the committee for “acknowledging agriculture’s critical role in mitigating the climate crisis in their report.” Not all groups were as optimistic. The National Cattlemen’s Beef Association says the plan is “unfortunately the product of partisan discussions that failed to encompass important constituent communities across the country.” ********************************************************************************************** No House-Senate Negotiations on COVID-19 Aid till July 20 Discussions are taking place behind the scenes on the next coronavirus aid package to come out of Washington, D.C. That, however, is the good news. The Hagstrom Report says formal negotiations between House and Senate leaders will not take place until July 20th. That note comes from Senate Finance Committee Chair Chuck Grassley. “We’re going to try to get things put into place for ethanol and biofuels, as well as more overall help for agriculture,” Grassley says. While there are some Republicans that have questioned the need to spend more money on aid, Grassley says Senate Majority Leader Mitch McConnell wants to pass another aid package and that it must contain limits on liability due to the coronavirus. Grassley says the reasons to wait-and-see until July 20th include figuring out what the state of the economy looks like by then. They also will see how much of the aid to state localities and hospitals has been spent, as well as to check out how much money remains in the Payroll Protection Program, run by the Small Business Administration. ********************************************************************************************** Soybean Growers Call Gap-Year SREs a “Devastating Blow” The American Soybean Association jumped into the debate over the 52 gap-year, small refinery exemption requests currently before the Environmental Protection Agency. They’re asking the agency to immediately reject the pending retroactive small refinery exemption petitions and to “stand with U.S. soybean growers in support of the Renewable Fuels Standard.” In a letter this week to EPA Chief Andrew Wheeler, the ASA is asking him to apply the U.S. Court of Appeals 10th Circuit’s ruling on exemptions to small refineries whose temporary exemptions has lapsed earlier, to all pending SRE petitions, including the 52 retroactive ones recently posted to the agency’s dashboard. Those requests date all the way back to 2011. “The approval of these gap filings would deal a devastating blow to soybean farmers and biodiesel producers by stifling demand for biodiesel,” says ASA President Bill Gordon, a soybean grower from Worthington, Minnesota. “Simply put, protecting the RFS is a priority of our organization. We strongly urge you to consider the perspective of the soybean farmer as EPA addresses this gap-filing issue.” Biodiesel is a critical market for soybean farmers, providing value for surplus soy oil that’s a co-product of soybean protein meal.
| Rural Advocate News | Thursday July 2, 2020 |
Washington Insider: Mnuchin, Powell Differ Over Economic Recovery Path The Hill is reporting that, not surprisingly, Treasury's Steven Mnuchin and the Fed's Jerome Powell differ significantly over how soon economy will recover and what that will involve. In testimony before a House committee this week, Fed chair Powell and Treasury Secretary Mnuchin offered disparate forecasts for the recovery – despite broadly agreeing on the success of the federal response so far. Mnuchin told members of the House Financial Services Committee this week that he expected the economy to “improve significantly” in the second half of the year after adding 2.5 million jobs in May. “We are in a strong position to recover because the administration worked with Congress on a bipartisan basis,” Mnuchin said. He later agreed that further help for certain industries may be necessary. While Mnuchin asserted that the worst of the pandemic-driven recession is in the rearview mirror, Powell was less sanguine. He pointed to daunting obstacles still ahead after the country suffered “a level of pain that is hard to capture in words.” Powell pointed to particular challenges, saying that “the path forward will also depend on the policy actions taken at all levels of government to provide relief and support the recovery for as long as needed.” He argued in favor of another round of stimulus. The officials' comments come as Democrats push for another sweeping coronavirus relief bill and Republicans caution against moving forward before existing measures work their way through the system. The recent competing levels of optimism mark one of the few splits between the two most powerful U.S. economic officials amid months of close collaboration. Both have worked in lockstep to deploy trillions of dollars in economic aid that's widely credited with dampening the staggering blow of the pandemic. But Mnuchin's bullish outlook, which is shared widely among the top administration aides, has occasionally contrasted with Powell's cautious approach as the chief of the independent central bank. At least part of the Congressional discussion during the hearing focused on concerns about specific near-term developments including potential tenant evictions without more aid from Congress. Millions of tenants are at risk of receiving eviction notices in late July as protections from a major coronavirus stimulus program are set to expire, The Hill said. The coronavirus relief bill, signed as the CARES Act in late March, included a moratorium on evictions for tenants in units with federally backed mortgages or other assistance who were unable to pay rent. But agreement in Congress on an extension of the moratorium will be required to help families hit hard by the coronavirus pandemic who may soon have to make new living arrangements. Because the federal moratorium applies only to housing being paid off through federally backed mortgages or insurance, it only applies to about a fifth of renters. But because many of the government programs are aimed at keeping costs down for low-earners, those renters also tend to be among the most vulnerable. A patchwork of other state and local level policies for keeping people in their homes are also due to expire, creating a slew of potential problems nationwide. Experts note that one of the best ways to keep the housing problem in check is to maintain an expanded level of unemployment benefits, which are also due to run dry come August. The income is one of the main things keeping millions of newly unemployed Americans afloat. House Financial Services Committee Chairwoman Maxine Waters, D-Calif., sponsored her own bill that would extend the eviction moratorium into March and also expand its scope, while providing billions in emergency rental assistance and low-cost loans for landlords. It passed in the House Monday night 232-180, largely along party lines. In addition, the administration's IRS chief, Charles Rettig, said Tuesday that his agency would work with Congress to examine ways that the tax code contributes to racial wealth disparities. "I'm [a] huge proponent of inclusiveness, diversity," Rettig said during a Senate Finance Committee hearing, in response to a question from Sen. Sherrod Brown, D-Ohio. "I think you're possibly aware of the fact that I'm the first commissioner whose spouse came to this country as a refugee. And so I understand how people are treated in different arenas, and we're all in," he added. Rettig's wife came to the United States as a refugee from Vietnam. So, we will see. There continues to be strong support for additional relief from the virus impacts, but there are also growing cases of administration reluctance or even pushback to follow-on legislation. While Fed chair Powell continues to highlight the importance of additional anti-virus support the growing fights about specific proposals should be watched closely as they continue to emerge, Washington Insider believes.
| Rural Advocate News | Thursday July 2, 2020 |
Sen. Grassley Pushing On Cattle Legislation Sen. Chuck Grassley, R-Iowa, criticized Senate Agriculture Committee Chairman Pat Roberts, R-Kan., for blocking his bill that would require a percentage of cattle sales to be for cash rather than pre-negotiated. Grassley told reporters Tuesday that Roberts said he was “considering” the Grassley-pushed measure, but when other members of the Committee wanted to have breakfast with Roberts to discuss it, he declined. “Here is the sad thing about the chairman of the committee,” Grassley said. “This is badly needed... I think of the money beef producers are losing.” Grassley detailed that 80% of the cattle sales are pre-negotiated contracts. “Four producers that have 80% of slaughter capacity, they are powerful forces in this town. You would think the chairman of the Ag committee would see the needs of the family farmer.” It is not clear yet that the Grassley provision will gain enough support to be put in place, particularly if the Senate Ag Committee does not act on the legislation first.
| Rural Advocate News | Thursday July 2, 2020 |
Dairy Producers Already Warning On Canada Dairy Changes The U.S.-Mexico-Canada Agreement (USMCA) took effect on Wednesday and the International Dairy Foods Association (IDFA) penned a June 30 letter which contends already there are issues on dairy policy relative to Canada's implementation of dairy product tariff rate quotas (TRQs). “…we believe that Canada is limiting certain U.S. dairy exports by maintaining restrictive TRQs and not moving quickly enough to implement a tariff rate quota (TRQ) administration system that is consistent with USMCA's Agriculture Chapter (the Agreement) as well as the annex on TRQs in the Canadian Schedule,” IDFA said in the letter to Gregg Doud, the ag trade negotiator at the Office of the U.S. Trade Representative. They note that under USMCA, Canada is not to put in place any new conditions or eligibility requirements on TRQs “beyond those set forth in the Canadian schedule.” However, the group noted that the eligibility and allocation calculations on proposed TRQs for many dairy products “impose eligibility and allocation calculation conditions that clearly fall outside of those set forth in the Canada schedule.” They specifically pointed to limiting access on the TRQ for Cheese of All Types to 15% for distributors and 85% for processors. “There is no such restriction in the Canada schedule,” IDFA said. They further noted there are new restrictions in place that “eliminate the opportunities for distributors to import bulk and retail-ready butter across the entire quote year,” based on a recent announcement by Global Affairs Canada (GAC). “I formally am registering our organization's deep concerns regarding Canada's non-compliance with the clear terms of the Agriculture Chapter of the Agreement,” IDFA President and CEO Michael Dykes said. U.S. Trade Representative Robert Lighthizer told the House Ways & Means Committee the administration would be closely monitoring Canada and dairy and other provisions in USMCA, warning, “If there's any shading of the benefits to American farmers, we're going to bring a case against them.”
| Rural Advocate News | Thursday July 2, 2020 |
Thursday Watch List Markets Dry conditions with very warm to hot temperatures are in store for most primary central crop areas Thursday. Rain will be confined to portions of the Delta and Deep South. This combination favors wheat harvest and will allow for flood easing in the southern Midwest. Row crop stress is a concern in drier areas of the eastern Midwest and the central and Southern Plains. Weather Dry conditions with very warm to hot temperatures are in store for most primary central crop areas Thursday. Rain will be confined to portions of the Delta and Deep South. This combination favors wheat harvest and will allow for flood easing in the southern Midwest. Row crop stress is a concern in drier areas of the eastern Midwest and the central and Southern Plains.
| Rural Advocate News | Wednesday July 1, 2020 |
The U.K. Still Resisting Agriculture Inclusion in U.S. Trade Talks United Kingdom officials in London are launching an advisory group that will focus on protecting the interests of British farmers during the upcoming high-stakes trade negotiations with the United States. Liz Truss, International Trade Secretary for the United Kingdom, says, “Trade pacts with other nations must be fair and reciprocal to our farmers, and must not compromise on our high standards of food safety and animal welfare.” Politico says that those two issues are among the many controversial sticking points for the upcoming negotiations with the Trump Administration. The White House wants the U.K. to ease its restrictions on certain ag practices and products like the so-called “chlorine chicken.” The restrictions on those practices effectively keep American farmers from having more access to the British market. The trade discussions with the United Kingdom are just ramping up as the U.S.-Mexico-Canada Trade Agreement goes into effect on Wednesday, July 1st. ********************************************************************************************** China Import Pace Still Lagging Far Behind on Phase One Purchases China recently began purchasing more agricultural goods from the United States as the Asian country continues to recover from COVID-19 shutdowns. However, a Regina Leader-Post article says China’s import pace is still far behind where it needs to be to meet the terms of the Phase One trade agreement with the U.S. By the end of May, China had bought just 19 percent of the total purchase target of more than $170 billion in goods during 2020. Those numbers from U.S. Customs Administration data mean that China will need to buy about $139 billion in goods over the remainder of this year. China agreed to buy an additional $200 billion in goods and services over the 2017 level of purchases by the end of next year. That agreement paused a brutal trade war between the two largest economies in the world. “China will have to increase its purchases significantly in the coming months to meet the buying targets,” says Michelle Lam, a greater China economist based in Hong Kong. “However, as long as China keeps buying, markets could stay calm.” Industry analysts saw a significant jump in Chinese imports of American commodities in May. In June, China imported more meat than it did in April or May. ********************************************************************************************** USDA Releases Planted Acreage/Grain Stocks Report U.S. farmers planted more corn and soybeans this year than in 2019, but they’re also planting less wheat and cotton than last year. Those are the numbers from the latest USDA Crop Production Report issued on Tuesday. The National Ag Statistics Service says farmers planted 92 million acres of corn, below the 94.8 million the trade expected, but still three percent higher than 2019. Growers expect to harvest 84 million acres of corn for grain, up 11 percent over last year. Soybean planted acres are estimated at 83.8 million acres, up ten percent from last year. Cotton acres are estimated at 12.2 million, down 11 percent from 2019. The all-wheat planted acre estimate is 44.3 million acres, down two percent from last year. That number is the lowest all-wheat planted area on record since recordkeeping began in 1919. In the Stocks Report, corn stocks totaled 5.2 billion bushels, up less than one percent from last year. On-farm stocks were up three percent, while off-farm stocks were down two percent. Soybeans in storage came in at 1.39 billion bushels, down 22 percent from June 1st of 2019. On-farm soybean stocks dropped 13 percent from last year, while the off-farm stocks were down 28 percent. The all-wheat storage numbers totaled 1.04 billion bushels, down three percent from last year. ********************************************************************************************** Coalition Warns Congress About Shortage of Ag Inspectors A coalition of more than 150 agricultural organizations is urging Congressional appropriators to close an estimated $630 million funding shortfall for Agricultural Inspectors at ports-of-entry. The coalition stated its case in a letter written to key members of the House and Senate Appropriations Committees. Customs and Border Protection Specialists, Technicians, and Canine Teams inspect ag imports to prevent the entry of foreign plant and animal pests and diseases, such as Foot and Mouth Disease. Allison Rivera, Director of Government Affairs with the National Cattlemen’s Beef Association, says, “We must continue to fund our CBP Ag Inspectors and give them the resources they need so that they can continue to be vigilant at our ports of entry.” National Pork Producers Council President Howard “A.V.” Roth (Rowth) says, “We depend on those inspectors to ensure that American agriculture remains safe. They’re the first line of defense to ensure that African Swine Fever and other foreign animal diseases remain outside the United States borders.” The NPPC says lapsed vigilance of these inspections would have devastating consequences for all of U.S. agriculture. ********************************************************************************************** Peterson Wants Turkey Growers to Get CFAP Aid House Agriculture Committee Chair Collin Peterson said last week that turkey growers weren’t treated fairly in the first round of the Coronavirus Food Assistance Program. The Hagstrom Report says Peterson wants turkey producers to get in on the next round of coronavirus aid to come out of Congress. “The Coronavirus Food Assistance Program payment is based on how much damage was done by COVID-19,” he said at the Minnesota Turkey Growers annual meeting. “In my opinion, there were many producers who weren’t treated correctly by this program, including turkey producers.” Sarah Anderson, Executive Director of the Minnesota Turkey Growers, says her group would absolutely like to be included in the next round of aid from CFAP. Anderson says the turkey industry doesn’t have the published data that the pork and beef industries have when it comes to the impact of COVID-19. “We’ve been working to provide data to the USDA so they know how much financial assistance growers will need,” Anderson says. “We’ve seen a loss in production for growers, so we want to make sure they’re covered.” ********************************************************************************************** Applications Open for the ASA Young Leader Program The American Soybean Association and Corteva (Kor-TEV-ah) Agriscience are seeking applicants for the 2021 ASA/Corteva Young Leader Program. The Young Leader Program is a two-phase educational program for actively-farming individuals and couples who are passionate about the future possibilities in agriculture. The women and men who get involved in the program are the leaders who will help shape the future of agriculture. Lucas and Becky Miller, Class Participants in 2020, say, “The ASA-Corteva Agriscience Young Leader Program is a phenomenal opportunity for any person or couple who is interested. It’s so much more than just a few days of leadership training in a classroom.” Phase 1 of the 2021 program takes place December 1-4 in Johnston, Iowa. The program continues March 2-6, 2021, at the Commodity Classic in San Antonio, Texas. “The Young Leader Program has had a tremendous impact on the soybean industry,” says ASA President Bill Gordon. “Many of the leaders at the state and the national level got their start in this program, including me.” Soybean grower couples and individuals are encouraged to apply for the program.
| Rural Advocate News | Wednesday July 1, 2020 |
Washington Insider: Looking Toward USMCA Certainly, there is a lot going on in the area of trade policy these days, including the implementation of the U.S.-Mexico-Canada Agreement (USMCA), which replaces the North American Free Trade Agreement. Bloomberg notes that the deal goes into effect July 1 following “13 months of diplomatic negotiations, plus further political wrangling in Washington.” It calls the NAFTA replacement a vehicle for “modest changes in some areas, significant additions in others and a new name.” The report points out that NAFTA guided trade among the U.S., Canada and Mexico for more than 26 years, starting in 1994. It succeeded in phasing out tariffs on most goods, creating what was for a time the world's largest free-trade zone and “gradually tripling trade among the three countries.” And, it integrated North American supply chains in auto manufacturing and other industries and removed barriers to foreign investment and cross-border trade in services, Bloomberg said. The report argues that while the administration sees the new agreement is “altogether different,” and claims credit for ending “the terrible NAFTA,” and believes that the USMCA will be “fantastic for all!” Still, even fellow Republican, Senate Finance Chairman Chuck Grassley, R-Iowa, said 95% of the new deal “is the same as NAFTA.” Bloomberg's analysis is that in spite of the USMCA's similarities to the earlier NAFTA, “some industries will notice changes,” and it describes a few. For example, for automakers, new rules require more vehicle components to be made in North America – with a portion made by workers earning an average of at least $16 per hour.” In addition, Canada will allow more imports of U.S. dairy products while both Canada and Mexico will increase the value of goods that can be imported duty-free. And, Bloomberg notes that now, “internet platforms can't be held liable for third-party content, and companies can't be required to store their data locally – and Canada is also increasing its copyright protection term. In retrospect, Bloomberg notes that while the administration insists that NAFTA was “the “worst deal in U.S. history,” and blamed it for increasing the U.S. trade deficit and sending manufacturing jobs to Mexico, that argument will continue for some time in the future. It comments that “most objective analyses conclude that NAFTA didn't cause major aggregate American job losses but also didn't significantly boost U.S. gross domestic product." Now, the USMCA is expected to boost U.S. trade with Mexico and Canada by about 5% overall, the U.S. International Trade Commission says. It also expects the deal will result in a 0.35% GDP increase in its sixth year—and will increase U.S. workers' annual incomes by an average of $150 and employment by 0.12%, or roughly 176,000 jobs. The President, however, has said the pact could bring more than 1 million jobs to the U.S., far beyond other estimates. Not everyone agrees, Bloomberg notes and cites an International Monetary Fund assessment that criticized the deal on the grounds that it will reduce the country's “welfare” (a measurement of consumption) by $794 million, while boosting Canada's by $734 million and Mexico's by $597 million – “relatively small” effects at the aggregate level, but likely sufficient to provide grounds for continued debate. Just implementing the deal will benefit some businesses by providing increased certainty about the future, especially because it largely exempts Canada and Mexico from future auto tariffs. The deal won't, however, stop the U.S. from reviving tariffs on Canadian aluminum that American officials say are necessary to respond to an oversupply from the north. The deal was in limbo for months as U.S. opposition Democrats successfully negotiated several changes before ratifying it. The revised agreement removes a loophole in NAFTA that allowed any country to object to the formation of enforcement panels and it adds new labor provisions, including a labor-specific dispute panel system and an inter-agency committee to monitor labor rights in Mexico. Democrats also succeeded in removing a provision that would have guaranteed 10 years of data protection for biologic drugs. It is clear that the deal is massive, composed of 34 chapters and 12 side letters. It does retain most of NAFTA's chapters making notable changes to market access provisions for autos and agriculture products, to rules such as investment, government procurement, and intellectual property rights, and to labor and the environment. New issues, such as digital trade, state-owned enterprises, and currency misalignment are also addressed. So, we will see. There was a great deal of political concern that the administration would merely scrap NAFTA in spite of its benefits for many producers, including agriculture. That anxiety likely will abate – although the eventual implementation likely will include numerous fights and more than a little uncertainty. Still, the concept of a free-flowing North American market is preserved, and modernized. Certainly, the devil is in the details and these should be watched closely as they are increasingly defined and made operational, Washington Insider believes.
| Rural Advocate News | Wednesday July 1, 2020 |
Farm Groups Ask For More Funding On Inspectors In a letter Monday to congressional appropriations committees, several U.S. farm groups warned the decline in cargo imports and international travel have significantly reduced collections of the user fees funding Customs and Border Protection Agriculture Quarantine Inspection at U.S. ports of entry. The shortfall is estimated to total $630 million through Fiscal Year 2021. “It is inconceivable that Congress would risk widespread damage to U.S. agriculture and the overall economy by not funding these inspections,” the organizations said in the letter. The House Appropriations Committee next week will start its appropriations process, with the ag spending plan up first with action on July 6 at the subcommittee level and July 9 at the full committee.
| Rural Advocate News | Wednesday July 1, 2020 |
Groups Urge Scale Back of EV Provisions in House Infrastructure Plan A late push was made by a coalition of ag and other groups on electronic vehicle (EV) provisions in the $1.5 trillion House infrastructure package. The groups warned that the package's increase on limits on electric vehicle (EV) credits and expansion of EV infrastructure like charging stations. They argue the provisions benefit “a small and affluent segment of the driving public, at additional cost to all other Americans.” They argue the expansion of the current EV tax credit, establishing of a new credit for used EVs, incentivizing states to “allow utilities to force all ratepayers to fund the buildout of electric charging infrastructure that only a few will utilize.” Plus, they point out that EV owners do not pay into the Highway Trust Fund. “Congress should maximize investment dollars in infrastructure that benefit all Americans, not a small subset of the automobile fleet,” the letter stated. The American Farm Bureau Federation, American Petroleum Institute, and Agricultural Retailers Association are among those signing the letter. Meanwhile, the White House threatened a veto of the legislation.
| Rural Advocate News | Wednesday July 1, 2020 |
Wednesday Watch List Markets Grain traders' first priority will be examining updated weather forecasts. After that, ADP gives an estimate of private sector job changes for June at 7:15 a.m. CDT Wednesday, followed by ISM's index of U.S. manufacturing at 9 a.m. The U.S. Energy Department's weekly report of U.S. energy inventories, including ethanol is at 9:30 a.m. At 1 p.m. CDT, the Federal Reserve releases minutes from it's most recent meeting, offering clues about the economy. Weather Wednesday features shower and thunderstorm activity from the northeastern Plains to the southern Midwest. Areas to the east and west of the rain corridor will be dry with concern for crop moisture ahead of corn pollination. Stressful heat is also in store for the southern Plains. Hot and dry conditions will favor wheat harvest.
| Rural Advocate News | Tuesday June 30, 2020 |
Governors Want EPA to Reject Retroactive Refinery Exemptions South Dakota Governor Kristi Noem (gnome) and Minnesota Governor Tim Walz sent a letter to Andrew Wheeler, Environmental Protection Agency Administrator regarding small refinery exemptions. They’re asking the agency to reject all of the 52 applications for retroactive small refinery exemptions from the Renewable Fuels Standard for past compliance years. Governor Noem and Governor Walz are the chair and vice-chair of the Governors’ Biofuels Coalition. “We are concerned that EPA is considering exemptions for prior years that were specifically submitted to evade the court of appeal’s decision by allowing refineries with lapsed SREs to establish a continuous chain of exemptions,” the governors say. “Approving prior-year SREs in this manner ignores the court’s decision and congressional intent, and it will severely impact farmers and rural communities that support the biofuels industry. Since 2017, the EPA has granted 85 SREs, undermining farmers and biofuel producers throughout the nation.” In January, the U.S. Court of Appeals in the Tenth Circuit ruled that the EPA could not legally award exemptions to refiners that didn’t receive any waivers in previous years and had failed to demonstrate hardship in any way related to the RFS. If all 52 applications get approved, the coalition says it will cost the market more than two billion gallons worth of demand. ********************************************************************************************** ASA Names Brian Vaught as Temporary CEO The American Soybean Association announced late last week that Chief Financial Officer Brian Vaught will replace Ryan Findlay as a temporary CEO of the organization. In a statement, the ASA says the group’s board of directors is “appreciative of Ryan Findlay’s hard work and dedication to the soybean industry.” With the organization now in transition mode, ASA says it remains confident in its staff members, both in St. Louis and in Washington, D.C., as well as in the value that they bring to the soybean industry. ASA’s governing body continues to support the organization’s growth, including in the independent policy office in D.C., and the internal management structure established throughout the organization by the now-former CEO. Findlay joined the organization in 2018. He was named to the top post after Steven Censky, who held the post for more than 20 years, headed to D.C. to become the Deputy Secretary of Agriculture. Findlay is a veteran of U.S. agriculture, holding jobs at Syngenta, Michigan Farm Bureau, and as a staff member in the Michigan legislature. ********************************************************************************************** Food Exporters Unhappy with China Clampdown on Imports China’s General Administration on Customs is asking some exporters to sign forms guaranteeing their products are free from COVID-19 contamination. Politico says that’s not sitting well with many U.S. food producers, who say they’re hesitant to sign off on the new safety protocols when they say it’s highly unlikely their food can even carry the virus. Western Growers CEO Dave Puglia (POO-glee-ah) says the new requirements from Beijing “are not based on any legitimate food safety concern,” citing international food safety guidelines that have found no evidence of the virus being transmitted through food or packaging. The pushback follows a rare joint statement from the USDA and the Food and Drug Administration that says, “Efforts by some countries to restrict global food exports related to COVID-19 transmission are not consistent with the known science of transmission.” Instead of signing the form issued from the Chinese government, some exporters are sending their own “commitment statements” with their cargo. The Ag Transportation Coalition sent its members three examples of statements they could use. “While China Customs hasn’t confirmed these statements are acceptable substitutes for the official form, we are hearing that exporters sending these statements have not encountered any issues so far with their customers clearing cargo in China,” the group says in an email. ********************************************************************************************** Not All “Meatless” Meats Good for Health/Environment A Forbes article says science-backed claims that plant-based meats are healthier for both humans and the environment have sparked a wave of veganism. However, all may not be as it appears. Sarah Galetti, the founder of vegan frozen food brand Tattooed Chef, says that many of the vegetarian meat products aren’t as clean as consumers think. Some of the brands that make an effort to mimic meat using scientifically engineered textures, smells, and flavors. Among those ingredients is soy hemoglobin, which is made from genetically modified yeast, which is used in the product to look like blood. The Burger King Whopper only has 30 more calories than the Impossible Whopper, the company’s “meatless” alternative. The Whopper also as one more gram of saturated fat and is 270 milligrams lower in salt than the Impossible Whopper. Research from the Federation of American Societies for Experimental Biology indicates that “Among meat substitutes, veggie burgers are associated with the highest carbon dioxide emissions, coming in at 4.1 kilograms per kilogram of the product.” ********************************************************************************************** Court Says No to Reversal on Dicamba Late last week, a panel of judges in the Ninth Circuit Court said no to a BASF motion to stay and recall their June 3rd ruling that vacated three dicamba registrations. The move puts dicamba registrations and product users back where they started the month: with three or four over-the-top dicamba herbicides no longer federally approved for use. For now, farmers and applicators can still apply any existing stocks that were in their possession on June 3rd, according to the cancellation order issued by the Environmental Protection Agency on June 8th. They have to follow directions on the former labels, as well as any state rules that are already in effect, including state cutoff dates that may have already taken place. Looking past 2020, a DTN article says the future of three dicamba registrations is in limbo. BASF had asked the judges to recall their mandate based on several reasons. For example, BASF says it wasn’t made aware that its Engenia herbicide was at stake in the case before the June 3rd decision. That meant they didn’t get a proper opportunity to defend the product in court. ********************************************************************************************** No Farm Progress Show and Husker Harvest Days in 2020 The Farm Progress Show and Husker Harvest Days have been going strong for 65 years as a place that farmers can go to find out about new products and tools to boost productivity. But, for the first time ever the shows won’t happen. Farm Progress made the difficult decision to cancel both shows due to the rapidly changing conditions related to COVID-19. Show management had initially said the shows would go on with different health and safety requirements in place. State and local officials had come out in support for both shows taking place. But Farm Progress officials said it became apparent in a very short time that the situation across the U.S. is changing. While state and local officials had expressed support for the shows, Farm Progress said it became apparent in a very short time that the situation in the U.S. is changing. “We have been working with officials in Iowa and Nebraska for our shows, and we appreciate the support they expressed for us to hold the events,” says Senior Vice President Don Tourte. “They are critical partners to us, and we are all disappointed to not host the events this year but feel confident this is the right decision for our community.”
| Rural Advocate News | Tuesday June 30, 2020 |
Washington Insider: Following the US, China Feud Bloomberg is reporting this week that the U.S.-China feud is “getting nasty with red tape as a stealth weapon.” The article says the countries are “moving beyond trade threats to exchanging regulatory punches that threaten a wide range of industries including technology, energy and air travel.” The two have blacklisted each other's companies, barred flights and expelled journalists -- to the point that the unfolding skirmish is starting to make companies nervous that the trading landscape could shift out from under them. “There are many industries where U.S. companies have made long-term bets on China's future,” said Myron Brilliant, the U.S. Chamber of Commerce's head of international affairs. Now, they're “recognizing the risk.” China will look to avoid measures that could backfire, said Shi Yinhong, an adviser to the nation's cabinet and a professor of international relations at Renmin University in Beijing. Any sanctions on U.S. companies would be a “last resort” because China “is in desperate need of foreign investment from rich countries for both economic and political reasons.” Still, pressure is only expected to intensify ahead of the U.S. elections in November, as President Trump and presumptive Democratic nominee Joe Biden joust over who will take a tougher line on China, Bloomberg said. Trump has blamed China for covering up the coronavirus pandemic and accused Beijing of “illicit espionage to steal our industrial secrets.” Biden, likewise, has described President Xi Jinping as a thug, labeled mass detention of Uighur Muslims as unconscionable and accused China of predatory trade practices. And, on Capitol Hill, Republicans and Democrats have found rare unity in their opposition to China, with lawmakers eager to take action against Beijing for its handling of COVID-19, forced technology transfers, human rights abuses and its tightening grip on Hong Kong. China has repeatedly rejected U.S. accusations over its handling of the pandemic, Uighurs, Hong Kong and trade. China also has fired back at the Trump administration for undermining global cooperation and seeking to start a “new cold war.” Foreign Minister Wang Yi last month said China had no interest in replacing the U.S. as a hegemonic power, while adding that the U.S. should give up its “wishful thinking” of changing the country. Both sides have already taken a series of regulatory moves aimed at protecting market shares. For example, the U.S. is citing security concerns in blocking China Mobile Ltd., the world's largest mobile operator, from entering the U.S. market. It's culling Chinese-made drones from government fleets and discouraging the deployment of Chinese transformers on the power grid. The administration has also tried to constrain the global reach of China's Huawei Technologies Co., the world's largest telecommunications equipment manufacturer. Meanwhile, China prevented U.S. airline flights into the country for more than two months and, after the U.S. imposed visa restrictions on Chinese journalists, it expelled American journalists. It has stepped up its scrutiny of U.S. companies, with China's state news agency casting one probe as a warning to the White House. China also has long made it difficult for U.S. telecommunications companies to enter its market, requiring overseas operators to co-invest with local firms and requiring authorization by the central government. One of the most combustible flash points has been the administration's campaign to contain Huawei by seeking to limit the company's business in the U.S. and push allies to shun its gear in their networks. After suppliers found work-arounds, Commerce in May tightened rules to bar any chipmaker using American equipment from selling to Huawei without U.S. approval, a step that could constrain virtually the entire contract chipmaking industry. Although Huawei can buy off-the-shelf or commodity mobile chips from a third party, such as Samsung Electronics Co. or MediaTek Inc., going that route could force it to make costly compromises on performance in basic products. Bloomberg thinks that both the U.S. and China have ample opportunities to ratchet up regulatory pressure. A bill passed by the Senate last month could prompt the delisting of Chinese companies from U.S. stock exchanges if American officials aren't allowed to review their financial audits. And last week, as the U.S. State Department imposed visa bans on Chinese Communist Party officials accused of infringing the freedom of Hong Kong citizens, a senior official made clear the move was just an opening salvo in a campaign to force Beijing to back off new restrictions on the city. Companies are still lured to China and its massive local market – and tensions with the U.S. don't overcome the Asian superpower's appeal. Just one-fifth of companies surveyed by the American Chamber of Commerce in China late last year said they had moved or were considering moving some operations outside of the country, part of a three-year downward trend. However, China is no longer the lowest-cost manufacturer and companies are increasingly reluctant to invest there, said James Lewis, director of the Technology Policy Program at the Center for Strategic and International Studies in Washington. “Everyone would like to be in the China market – everyone wants it to be like 2010-- but things are changing.” So, we will see. Certainly, the pre-election tensions amplify trade uncertainties, large and small. And, they boost the stakes involved – a making it essential for producers, as well as others, to watch this policy “dance” closely as changes and shifts emerge, Washington Insider believes.
| Rural Advocate News | Tuesday June 30, 2020 |
US Rice Industry Calls For End To Duty-Free Treatment Of Rice Under GSP The U.S. rice industry is calling on the Trump administration to eliminate duty-free treatment for all rice imports under the Generalized System of Preferences (GSP) program. The USA Rice Federation filed a petition in March asking for the action. But the U.S. Trade Representative's office, in a set of questions to the rice group and countries that would be affected by the action, noted the U.S. rice industry was still a “significant rice exporter,” with foreign shipments of $1.9 billion last year. USTR is asking, “Could you please advise whether increased rice imports have harmed U.S. rice production or exports, and if so, how specifically?” Further, they also sought an explanation of the U.S. parboiling industry, its employment levels and locations, and the “degree to which it might be injured by imports.”
| Rural Advocate News | Tuesday June 30, 2020 |
Ernst Holding Up EPA Nominee Sen. Joni Ernst, R-Iowa, said she will block President Donald Trump's nomination of Doug Benevento to be EPA's Deputy Administrator from advancing until the agency reveals how it plans to handle the dozens of new requests from refineries for exemptions from their biofuel requirements. “Until EPA tells us exactly what they plan to do with the 'gap year' waivers, Mr. Benevento does not have my vote,” Ernst said in a statement. “Iowa's hardworking ethanol and biodiesel producers are sick of being yanked around by Andrew Wheeler and the EPA. Our producers need certainty; until we get that, no EPA nominee is getting my vote.” Benevento is currently EPA associate deputy administrator and was nominated in February to take the number two post at the agency. Holds are not new in the world of Congress, and EPA nominations have been a target previously, with Sen. Ted Cruz, R-Texas, previously holding up an EPA nomination over biofuel policy. EPA's proposed 2021 biofuel and 2022 biodiesel levels under the Renewable Fuel Standard (RFS) has been under review at the at the Office of Management Budget (OMB) and is normally issued in the late-June/early July timeframe.
| Rural Advocate News | Tuesday June 30, 2020 |
Tuesday Watch List Markets After a report on consumer confidence at 9 a.m. CDT Tuesday, grain traders will brace themselves for USDA's Acreage and June 1 Grain Stocks reports at 11 a.m. CDT. Ongoing interests in weather and export news will round out the day's attention. Weather Thunderstorms with locally heavy rain and severe potential are in store for the Northern Plains and southern Midwest Tuesday. Flood potential is widespread in the southern Midwest due to the prospect of heavy rain. Some flooding is also possible in the far Northern Plains. Other crop areas will be dry. Hot and dry conditions in the Southern Plains will favor wheat harvest but will continue to stress row crops and livestock. Irrigation demand in drier areas is extensive.
| Rural Advocate News | Monday June 29, 2020 |
FFA National Convention and Expo Goes Digital in October The National FFA Organization announced last week that the 2020 National FFA Convention and Expo will be held virtually. “We wanted to ensure that our members and guests had the full convention experience,” says Mark Peoschl (PESH-uhl), National FFA CEO. “After a discussion with the Board of Directors, the decision was made to move forward with a virtual experience in 2020.” He says as they continued to plan for the national convention, it became clear that travel restrictions and public health concerns, among many other challenges, made hosting their in-person event impossible this year. This year’s event will still be hosted by the 2019-2020 National FFA Officer Team and continue the tradition of celebrating and inspiring hundreds of thousands of FFA members who will become the next generation of leaders. “While the convention will look, a little different this year than what we’re used to, FFA members around the country have proven their willingness to not only adapt but create meaningful experiences while celebrating FFA and agricultural education,” says Kolesen McCoy, National FFA President. The organization looks forward to returning to Indianapolis with an in-person convention in 2021 as part of its long-term partnership that now runs through 2033. The organization and its board of directors also decided last week to extend the city of Indianapolis’s contract for two more years. ********************************************************************************************** Senators Urge EPA to Reject Biofuel Blending Waivers Senators Chuck Grassley and Joni Ernst of Iowa, along with Amy Klobuchar of Minnesota and Tammy Duckworth of Illinois, sent a letter to the Environmental Protection Agency on blending waivers. They’re asking the EPA to reject petitions for Small Refinery Exemptions (SREs) under the Renewable Fuels Standard for past compliance years. In the letter, the senators warn that by granting any or all of the petitions, the agency would only worsen the economic challenges facing the biofuels industry. They also want the EPA to apply the Tenth Circuit Court decision nationally. “We urge you to reject these petitions outright and respond in writing to our questions about recent use of SREs under the RFS,” the senators say in the letter. “These petitions should not even be looked at because they are inconsistent with the Tenth Circuit Decision, Congressional intent, as well as the EPA’s own guidance.” Most importantly, they say it goes against the best interests of farmers and rural communities who rely on the biofuel industry. “The approval of the SREs for past compliance years will only worsen the already unprecedented challenges facing the biofuels industry and the rural communities that it supports,” the Senators added. ********************************************************************************************** Groups Appreciate Biofuel Support in Senate The National Biodiesel Board is grateful to a bipartisan group of senators who asked the Environmental Protection Agency to reject 52 RFS exemption requests. Those petitions are for past compliance years. The Senators expressed frustration and alarm in the letter that Administrator Andrew Wheeler is considering exemptions for refineries that either did not submit petitions or weren’t granted waivers in the past. NBB Vice President of Federal Affairs, Kurt Kovarik, says, “A brand new flood of unlawful small refinery exemptions is guaranteed to compound the damage done to rural America over the last several years.” Growth Energy CEO Emily Skor says the sole purpose of the retroactive exemptions is to circumvent the law at the expense of rural families struggling to get back on their feet. “There is no justification for allowing these petitions to hang over the market, injecting uncertainty into America’s agricultural recovery,” Skor says. “EPA needs to dismiss the oil industry’s latest attempt to destroy demand for biofuels and restore the integrity to the RFS.” Growth Energy is grateful to the senators for standing up to this attempt to “rewrite history, skirt the courts, and torpedo efforts to rebuild America’s agricultural supply chain.” ********************************************************************************************** Mexican President to Meet This Week with Trump Mexican President Andres Manuel (Man-WELL) Lopez Obrador will be in Washington this week to celebrate the U.S.-Mexico-Canada Agreement on trade going into full effect. The Washington Trade Daily says Obrador will meet with President Trump and may also meet with Canadian Prime Minister Justin Trudeau. As the agreement between the three North American countries enters into force, Obrador is making the trip to signal Mexico’s commitment to the USMCA and that it’s a reliable partner in the agreement. Mexico’s Secretary of the Economy spoke recently during a webinar sponsored by the Atlantic Council, noting that implementation of the USMCA is even more important as the countries try to recover from COVID-19. The trade pact was negotiated before the coronavirus outbreak took off, but it can also be a model for trade in the post-pandemic world. The Hagstrom Report says officials in Mexico also believe that in the wake of COVID-19, most countries will be looking to bring their supply chains closer to home. ********************************************************************************************** U.S. Hog Industry is Up by Five Percent As of June first, U.S. farms contained 79.6 million hogs and pigs, up five percent from June of 2019. That’s also three percent higher than March first of this year. The Quarterly Hogs and Pigs report came out last week from USDA’s National Ag Statistics Service. Out of the total of 79.6 million hogs, 73.3 million are market hogs, while 6.3 million will be kept for breeding. Between March and May of this year, U.S. farms weaned 34.9 million pigs, up one percent from the same time a year ago. Also, from March to May 2020, U.S. hog and pig farmers weaned an average of 11 pigs per litter. U.S. hog producers intend to have 3.12 million sows farrow between June and August of 2020, and 3.09 million sows will farrow between September and November. The largest herd inventory is located in Iowa, where the total number is 25.2 million head. Minnesota was second at 9.6 million head and North Carolina was third with 9.4 million head of hogs and pigs. ********************************************************************************************** McDonald’s in Canada Says No to More Beyond Meat Burgers Shares of Beyond Meat fell seven percent last week after the CBC report that said McDonald’s stopped testing a burger made with its patties in Canada. McDonald’s’ in Canada says the test ended on April sixth, mentioning on Twitter that they “have no plans to bring it back to our menu at the current time.” A Beyond Meat spokesperson tells CNBC that, “We can only comment generally and share that we were pleased with the test.” The company’s CEO Ethan Brown said in early May that the test concluded for no negative reason at all. “We feel very good about our relationship with McDonald’s,” Brown says. “We feel good about what’s going to be happening, both there and potentially elsewhere.” Back in September of 2019, McDonald’s joined the push for more meat alternatives in North America when it began testing the meat-free PLT burger in southwestern Ontario. McDonald’s says there has been no change in its relationship with Beyond Meat, noting that they’re evaluating learnings from their recent test to inform future menu options.
| Rural Advocate News | Monday June 29, 2020 |
Washington Insider: Decoupling US Trade From China Will be Hard While President Donald Trump is urging American companies to “ditch China,” many of them can’t get more goods fast enough. There are several reasons, Bloomberg reports. As an example, Bloomberg follows the container ship Melina, which set sail Wednesday from a Chinese port near Shenzhen with products bound for U.S. households. The report calls the ship a hulking “symbol of how the flow of goods is adapting in a global economy crippled by a pandemic.” Capable of carrying almost 4,300 containers, she’s “downright petite” in an industry where the biggest ships can handle more than 20,000. However, the Melina is part of a budding fleet of smaller vessels that COVID-19 has thrust into service. These tend to compete on the basis of speed and it will dock in Los Angeles on July 6 after a 12-day journey, which is a week ahead of a larger ship doing the same route, Bloomberg says. However, speed is costly -- as much as double the cost of standard transpacific service -- which is already rising as the world’s biggest shipping companies scale back capacity perhaps by 25% this quarter and another 10% in the third quarter. The industry expects U.S. retail demand to recover only slowly amid “plenty of fog on the global economic horizon.” But for now, “shipping demand from some companies remains brisk,” justifying the added import cost of fast delivery from online shoppers for everything “from protective medical gear to baby pools for the backyard.” Melina is among lines offering express service between China and the U.S., the kind of links that show the difficulty President Trump faces in pushing for a “complete decoupling” of the world’s largest economies and bringing production back home. “We expect the need for this expedited service to be permanent and actually grow as the share of e-commerce in global trade will continue to grow,” Nissim Yochai, the company’s executive vice president in the Pacific, said from Hong Kong. “This abnormal period will continue as long as the world continues to search for tools to offset the COVID-19 pandemic and to assist people attempting to get out to work and socialize and, of course, consume.” Striking a balance between global supply and demand is what shipping companies are trying to do constantly, looking months and even years in advance. The pandemic has made that job much harder. One way to do it is to cancel sailings, which they’ve been doing a lot lately. At the adjoining ports of Los Angeles and Long Beach, the main gateway for Chinese imports, 45 trips have been scrapped this quarter, more than four times the number in the second quarter of 2019. For some U.S. companies on the receiving end of goods, shipping disruptions are starting to subside. For others, they’re just beginning, Bloomberg says. “We’re not at the point right now where we’ve rebalanced supply to the demand because the demand signals are jumping all over the board,” said Abe Eshkenazi, CEO of the Association for Supply Chain Management. About 80% of the world’s trade crosses an ocean by ship, and the industry typically has two busy seasons tied to Chinese holidays, the New Year and Golden Week in October. With normal shipping rates double what they were three months ago and air cargo rates still elevated because of a dearth of commercial flights, importers are facing the strains of a peak season now. A general merchandiser in small-town America that offers free coffee and a bag of popcorn, Rural King is little different than other traditional retailers that experienced recent shortages of toilet paper, paper towels and hand sanitizer, Bloomberg said. But thanks to a flexible supply chain and close relationships with vendors in China and elsewhere in Asia, the firm has managed to keep most items stocked and is having a good year. Who knew squirrel feeders would be big sellers in a global health crisis, or plastic pools, Rural King manager told Bloomberg. “And, we just got another shipment of trampolines,” he said, adding that Rural King stores sold 300 in one day recently. Good thing for him he has 100 to 200 suppliers in China, and in Vietnam whom he talks to daily and who are scrambling to help meet the rush. “They are unbelievable with these orders.” So, we will see. The online retail services system is huge and driven by powerful economic forces that make it extremely difficult to realign, as the Trump administration appears to be finding out. However the changes being proposed are important and should be watched closely by producers as the nation struggles to overcome the coronavirus, Washington Insider believes.
| Rural Advocate News | Monday June 29, 2020 |
USDA to Allow Online Applications for CFAP Applications for the Coronavirus Food Assistance Program (CFAP) will now be accepted by USDA’s Farm Service Agency (FSA) via an online portal and the agency said it would now be “leveraging commercial document storage and e-signature solutions” to allow for the completion of applications from home. Through the online portal, producers can use eAuthentication -- secure USDA login credentials -- to certify eligible commodities online, digitally sign applications and submit directly to the local USDA Service Center. Currently, the digital application is only available to sole proprietors or single-member business entities, FSA noted. The agency also said that offices can “work with producers to complete and securely transmit digitally signed applications through two commercially available tools: Box and OneSpan.” As of June 22, USDA has paid out $4.006 billion in CFAP payments to 252,489 producers.
| Rural Advocate News | Monday June 29, 2020 |
Lawmakers Call on EPA to Reject Retroactive Small Refinery Exemptions EPA should deny 52 retroactive small refinery exemption (SRE) requests it has received going back to the 2011 compliance year, according to a bipartisan group of 16 senators led by Sens. Amy Klobuchar, D-Minn., and Joni Ernst, R-Iowa. “These petitions should not even be entertained because they are inconsistent with the Tenth Circuit decision, Congressional intent, the EPA’s own guidance, and -- most importantly -- the interests of farmers and rural communities who rely on the biofuel industry,” the letter noted. Retroactive waivers “would only worsen the unprecedented economic challenges facing the biofuels industry and the rural communities that it supports,” the letter added. The lawmakers also want EPA to explain exemptions for refineries owned by Chevron and Exxon Mobil.
| Rural Advocate News | Monday June 29, 2020 |
Monday Watch List Markets Back from another summer weekend, traders will be checking the latest weather forecasts with corn pollination approaching. A May index of pending home sales is due out at 9 a.mCDT, followed by USDA's weekly export inspections at 10 a.m. USDA's Crop Progress report is set for 3 p.m. CDT with plenty of interest in USDA's latest crop ratings. Weather Thunderstorms with locally heavy rain and the potential for high winds and hail are in store for portions of the Northern Plains and Midwest Monday. Areas bypassed by the storms will have very warm to hot conditions with heat stress likely. Haze due in part to the huge dust cloud from the Sahara Desert will produce air quality issues in addition to the heat stress. Hot and dry conditions in the Southern Plains will favor wheat harvest
| Rural Advocate News | Friday June 26, 2020 |
Ag Equipment Manufacturers Still Struggling with COVID-19 The Association of Equipment Manufacturers continues to struggle with COVID-19. AEM represents 12 percent of the U.S. manufacturing sector, which is still adjusting to challenging and changing economic conditions. Roughly 75 percent of U.S. equipment manufacturers say the impact of COVID-19 on the overall economy is still very negative. As many as 60 percent of industry executives say that the federal government hasn’t done enough to support the industry as it continues to face a decline in demand and supply chain disruptions. “COVID-19 continues to negatively impact equipment manufacturers and the 2.8 million men and women in our industry,” says Dennis Slater, President of AEM. “We have seen some improvements to the operations and financial outlook for our member companies. However, the industry still faces a long road back to normal.” Slater says even as the industry continues to build, feed, and power the country, there are far too many of the member companies running out of time. Many equipment executives say they’re still struggling to keep workers on the job, with 80 percent of them admitting they won’t be able to rehire workers laid off earlier in the year. ********************************************************************************************** U.S. Fires Back at China Linking COVID Concerns and Food Imports U.S. health and agricultural authorities issued thinly-veiled criticism of new Chinese demands placed on food-exporting companies. Beijing is asking those companies to sign documents stating that they comply with Chinese safety standards to prevent COVID transmission. “Efforts by some countries to restrict global food exports related to COVID-19 transmission are not consistent with the known science of transmission,” says Ag Secretary Sonny Perdue and Food and Drug Administration Commissioner Stephen Hahn in a joint statement. The two officials both say there is “no evidence that people can contract COVID-19 from food or packaging.” Bloomberg says that’s in line with expert advice saying that food poses little risk of spreading the coronavirus. China recently warned global exporters dealing with outbreaks among employees by placing bans on a plant owned by Tyson Foods, which reported infections at a site in Arkansas. China’s customs authorities say companies in the United Kingdom, Germany, and Brazil, have voluntarily halted shipments due to a rise in the number of positive COVID cases within their borders. Tyson was the first major U.S. company to sign the Chinese certificate, while others have been more reluctant to sign an affidavit due to liability concerns. ********************************************************************************************** USDA Adds Digital Options for CFAP Applications USDA’s Farm Service Agency will take applications for the Coronavirus Food Assistance Program through an online portal. The agency’s goal is to expand the options available to producers to apply for the program, which helps offset price declines and additional marketing costs because of the coronavirus pandemic. FSA is also leveraging commercial document storage and e-signature solutions to enable producers to work with local service center staff to complete their applications from home. “We’re doing everything we can to serve our customers and make sure agricultural producers impacted by COVID-19 can quickly and securely apply for this relief program,” says FSA Administrator Richard Fordyce. “In addition to working with FSA staff through the phone, email, and scheduled in-person appointments, we can now also take applications through the farmers.gov portal, which saves time for both our staff and producers.” Those producers who already have secure USDA login credentials can certify eligible commodities online, digitally sign applications and submit them directly to the local USDA Service Center. Producers who don’t have a secure login can begin the signup process at www.farmers.gov/sign-in. ********************************************************************************************** NFU: EPA is a “Barrier” for Emission Reduction in Biofuels The head of the National Farmers Union blasted the Environmental Protection Agency, calling it a “barrier” for reducing greenhouse gasses in biofuels. “The EPA has been the primary barrier to a lot of additional success that we can have in reducing greenhouse gasses in ethanol technology,” says Rob Larew, President of the National Farmers Union. “The story for grain-based ethanol, in general is the EPA continues to be a barrier, not only because of the waivers they’ve issued but also for barriers against higher blends.” Larew’s comments during a Senate hearing took place days after the EPA said it had received 52 new petitions from oil refiners asking for retroactive exemptions to requirements that they blend biofuels into their products. A court overturned three agency-issued waivers in January, which the EPA did not appeal. Biofuels are a complex issue as the Trump Administration struggles to balance the conflicting interests of farmers and the oil industry, two demographics that are key parts of President Trump’s base. The NFU President appeared during a Senate Ag Committee hearing on a new bipartisan bill designed to help farmers get carbon credits in exchange for sustainable farming practices. ********************************************************************************************** Senators Question Meatpackers About Chinese Exports, Meat Shortages Two Democrats in the U.S. Senate are questioning top American meatpackers about past shipments to China while America went through meat shortages in grocery stores across the country. Senators Elizabeth Warren and Cory Booker want to know by the end of this month how much pork, beef, and chicken those companies shipped to China during the coronavirus outbreak while warning of possible domestic meat shortages. Reuters says the inquiry increases the scrutiny on companies like Tyson Foods, JBS USA, and Smithfield Foods, after thousands of meatpacking workers were infected with COVID-19. USDA data says those companies exported 112,327 tons of U.S. pork to China in April, more than any other month before and up 257 percent from a year earlier. Those export numbers raise questions about why U.S. meat prices soared, and President Trump had to order the nation’s slaughterhouses to stay open to protect the nation’s food supply. In a letter outlining their request for information, Booker and Warren said, “This pattern of behavior raises questions about whether you are living up to your commitments to the workers who produce your pork and beef, the communities in which you operate, and the nation’s consumers that rely on your products to feed their families.” ********************************************************************************************** Largest Meatpacking Union Confirms Growing COVID-19 Impact on Workers The United Food and Commercial Workers International Union held a press conference highlighting the impact and growing danger of COVID-19 on frontline workers. The union represents 1.3 million employees. The UFCW says that during the last 100 days, 238 UFCW frontline workers have died from COVID-19 and nearly 29,000 workers have been infected or exposed. UFCW International President Marc Perrone (Per-RONE) announced three new initiatives the union wants in effect. The first is establishing hazard pay and a $15 per hour wage for all frontline workers. Second is establishing a public mask mandate in all 50 states. Third, they want a new national public registry to track COVID-19 infections in frontline workers. That would require companies with more than 1,000 employees to submit monthly reports on their worker deaths, infections, and exposures. Perrone says, “100 days into COVID-19 and American frontline workers still face many of the same dangers they faced on day one. Frontline workers in grocery stores, meatpacking plants, and healthcare facilities, are still getting sick and dying.” He also says it’s high time for America’s CEOs and elected leaders to “pull their head out of the sand” and take strong action needed to protect America’s brave workers.
| Rural Advocate News | Friday June 26, 2020 |
Washington Insider: IMF Warning on Coronavirus Impacts The International Monetary Fund emphasized on Wednesday that the global economy faces an even deeper downturn than previously projected, and that the pandemic “continues to sow uncertainty” as businesses around the world struggle to recover. Even at this stage, it is increasingly evident that the recovery will be uneven and protracted “as cases continue to surge and consumers remain wary of resuming normal activity,” the New York Times reported. In an update to its World Economic Outlook, the IMF said it expects the global economy to shrink 4.9% this year -- a sharper contraction than the 3% predicted in April. The fund noted that, even as businesses began to reopen, voluntary social distancing and enhanced workplace safety standards were weighing on economic activity and that the “scarring” of the labor force from job cuts and business closures will slow global recovery. It now projects 5.4% global growth in 2021, far below its pre-pandemic projections. Overall, the IMF expects that the cumulative loss of total output for the global economy this year and next year will top $12 trillion. NYT says the IMF forecast is “more grim” than global projections outlined earlier this month by the Organization for Economic Cooperation and Development. And its U.S. forecast for 2020 is less optimistic than that the Congressional Budget Office and the Federal Reserve have projected. The IMF now projects that the U.S. economy will shrink 8% this year before expanding 4.5% next year. The Fed in June projected a particularly sharp U.S. economic hit in 2020 with output contracting 6.5% at the end of this year compared to the final quarter of 2019, before rebounding by 5% in 2021. A May report from the Congressional Budget Office forecast a 5.6% contraction in the United States this year. Charles Evans, president of the Federal Reserve Bank of Chicago, said on Wednesday that he expects a “broad recovery will take some time” in the United States, adding that “the future is more uncertain now than at any other time” in his professional career. “My forecast assumes growth is held back by responses to intermittent localized outbreaks -- which might be made worse by the faster-than-expected re-openings,” Evans said. “Usually, we are able to look to the past for guidance on what is in store for the future. But in this situation, there is simply no relevant benchmark.” The pandemic has not spared advanced or developing economies. Economies in the eurozone are projected to shrink 10.2% this year and expand 6% next year. In China, where the virus originated and which imposed draconian containment measures, the economy is expected to expand 1% this year and 8.2% in 2021. Nonetheless, the Trump administration continues to suggest a more bullish outlook, the Times said. Larry Kudlow, the director of the National Economic Council, said Tuesday that he expected a V-shaped recovery, with a “sharp, steady economic uptick on the heels of recession.” Treasury Secretary Steven Mnuchin said that he could foresee the recession being over in the United States by the end of the year. Prolonged economic pain means increased pressure on the administration and U.S. lawmakers to move forward with another round of stimulus measures. House Democrats want a $3 trillion economic support package but Republicans are increasingly wary of the long-term impacts of such spending. Treasury Secretary Steve Mnuchin said this week that future measures should be more targeted to help industries that have been hit hardest by the pandemic. President Trump has suggested he would be open to another round of stimulus checks, which could land in peoples’ bank accounts just ahead of the November election. The IMF notes that, even in countries where infection rates are declining, major obstacles to the resumption of normal activity persist and that the pandemic has curtailed the flow of global trade, which the fund estimated had contracted 3.5% in the first quarter from a year earlier. That is in line with an estimate by the WTO, the Times said, which reported on Tuesday that global trade had fallen sharply in the first half of the year. On the brighter side, that trajectory did not seem quite as bad as the group had previously projected. Trade in goods shrank 3% year on year in the first quarter while initial estimates indicate that it fell 18.5% in the second quarter, the steepest decline on record. But those declines could have been much worse, the organization said. Trade needs to grow only modestly for the rest of the year to meet the organization’s outlook for a 13% contraction in 2020, versus a more pessimistic potential decline of 32%. Roberto Azevedo, the director general of the WTO called the development a “silver lining” but said governments need to be on guard and continue to stimulate the economy. “This is genuinely positive news, but we cannot afford to be complacent,” he said. So, we will see. The virus certainly is continuing to be a threat on many fronts and economic recovery appears to be a greater challenge than once expected -- prospects producers should watch closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Friday June 26, 2020 |
USDA OIG Criticizes FSIS In Swine Inspection Rule USDA did not comply with data quality guidelines when writing a controversial rule to overhaul safety inspections at pork slaughterhouses, according to a report from the USDA Office of the Inspector General (OIG). The OIG report detailed several shortfalls in how the department formulated the regulation that allows meatpackers to accelerate their pork processing lines to high speeds that labor advocates have warned are dangerous for plant workers. USDA’s Food Safety and Inspection Service (FSIS) did not fully adhere to requirements for data quality and transparency, and specifically “did not take adequate steps” to determine whether the worker safety analysis in question was reliable. FSIS said that OIG put a “distorted emphasis” on minor errors and omissions in preliminary rulemaking documents.
| Rural Advocate News | Friday June 26, 2020 |
USDA, FDA Reiterate Stance That Food Not A Transmission Route For COVID-19 USDA Secretary Sonny Perdue and FDA Commissioner Stephen Hahn issued a joint statement Wednesday on food export restrictions by some countries relative to COVID-19. “The United States understands the concerns of consumers here domestically and around the world who want to know that producers, processors and regulators are taking every necessary precaution to prioritize food safety especially during these challenging times. However, efforts by some countries to restrict global food exports related to COVID-19 transmission are not consistent with the known science of transmission,” the statement said. “There is no evidence that people can contract COVID-19 from food or from food packaging. The U.S. food safety system, overseen by our agencies, is the global leader in ensuring the safety of our food products, including product for export.” The statement does not specify a country, but appears to clearly be a reference to China blocking imports of poultry from a U.S. plant and from some plants in other countries.
| Rural Advocate News | Friday June 26, 2020 |
Friday Watch List Markets U.S. personal incomes and consumer spending are due out at 7:30 a.m. CDT Friday, followed by the University of Michigan's consumer sentiment index at 9 a.m. Weather forecasts remain a top interest for traders as well as any export news that might emerge. Weather Light to moderate rain is in store for portions of the western and northern Midwest along with the Gulf Coastal Bend and southern Delta Friday. Other crop areas will be dry. Temperatures will be seasonal to above normal, with hot conditions noted in dry areas of the southwestern Plains. The general impact is favorable for row crop development and winter wheat harvest.
| Rural Advocate News | Thursday June 25, 2020 |
Senate Ag Committee Passes Grain Standards Reauthorization The Senate Agriculture Committee Wednesday passed the United States Grain Standards Reauthorization Act of 2020 by a voice vote. The bill extends the authorization for the Federal Grain Inspection Service of the Department of Agriculture to continue providing inspection services and to maintain an official marketing standard for certain grains and oilseeds. The bill now heads to the full Senate to consider the five-year reauthorization. Senate Agriculture Committee Chairman Pat Roberts, a Kansas Republican, says, "the entire federal grain inspection system needs the certainty, predictability, and transparency” the reauthorization bill provides. Debbie Stabenow of Michigan, the top Democrat on the Committee, says the bill “protects the interests of American farmers and ensures our credibility as a reliable producer of high-quality crops.” Roberts says the bill has wide industry support. The National Association of Wheat Growers voiced its support of the reauthorization, stating, “Our overseas customers value the independent system in place through the Grain Standards Act.” ************************************************************************************ Farm Groups Support Carbon Market Bill Farm groups offered their support for a climate bill that would give farmers access to carbon offset markets during a Senate Agriculture Committee hearing Wednesday. The Growing Climate Solutions Act would create a certification program at the Department of Agriculture to help solve technical barriers to participation in carbon credit markets for farmers and forest landowners. The bill would also provide the Agriculture Secretary with an advisory council of agriculture experts, scientists, producers, and others, to ensure the certification program works for all participants. American Farm Bureau Federation President Zippy Duvall says the bill “builds upon American agriculture’s strong foundation of environmental stewardship and innovation.” National Farmers Union President Rob Larew suggested several additions to strengthen the bill, including mechanisms to prevent farm-level consolidation, robust funding for public climate research, and protections for farmers from bad actors or faulty market efforts. The National Pork Producers Council says the bill rewards contributions by pork producers and other sectors of agriculture to reduce greenhouse gas emissions. ************************************************************************************ Federal Agents Seize Almost 10 Tons of Illegal Meat at California Port Officials with the U.S. Customs and Border Protection reports it has intercepted 19,500 pounds of prohibited pork, chicken, beef and duck products arriving from China. The products were intercepted at the ports of Los Angeles and Long Beach. According to an official statement, most of the animal products were mixed in boxes of headphones, door locks, kitchenware, LCD tablets, trash bags, swim fins, cell phone covers, plastic cases and household goods. Border protection agriculture specialists identified, examined and seized 12 shipments containing a total of 834 cartons that lacked the required USDA entry documentation. The National Pork Board says that in the first five months of fiscal year 2020, the interception of prohibited meats from China at the LA/Long Beach Seaport has increased 70 percent compared with the same period a year ago. The work by border patrol is critical to maintain secure borders from foreign animal diseases, including African swine fever. ************************************************************************************ Bayer Announces Roundup and Dicamba Litigation Settlements Bayer Wednesday announced a series of agreements that will substantially resolve major outstanding Monsanto litigation. The announcement includes a settlement on U.S. Roundup product liability litigation, dicamba drift litigation and PCB water litigation. According to Bayer, the main feature is the U.S. Roundup resolution that will bring closure to approximately 75 percent of the current Roundup litigation involving approximately 125,000 filed and unfiled claims overall. The company will make a payment of $8.8 billion to $9.6 billion to resolve the current Roundup litigation, including an allowance expected to cover unresolved claims, and $1.25 billion to support a separate class agreement to address potential future litigation. Bayer also resolved dicamba drift litigation for payment of up to $400 million and most PCB water litigation exposure for payment of approximately $820 million. Bayer CEO Werner Baumann adds, “As we work to put this major litigation behind us, Bayer can set a course for the future and tackle the global challenges we face in both health and nutrition.” ************************************************************************************ Apple Growers Seek Access to Pandemic Relief Apple producers in the United States seek access to federal aid included in the Coronavirus Food Assistance Program. Washington State U.S. Representative, Republican Dan Newhouse, led an effort in asking the Department of Agriculture to include apple growers in the CFAP. The group of 25 lawmakers in a letter to Agriculture Secretary Sonny Perdue wrote, “Steep price declines clearly makes apple growers eligible for CFAP payments.” CFAP provides financial assistance to producers who have suffered a five-percent-or-greater price decline or who had losses due to market supply chain disruptions due to COVID-19. The losses must have occurred between mid-January and mid-April because of the COVID-19 pandemic to be eligible for CFAP funds. The lawmakers are demanding USDA reverse its decision based on data from the apple industry, showing that apple price losses ranged from 6.5 percent to as much as 24.9 percent due to the COVID-19 pandemic. According to USDA data there are approximately 5,000 commercial apple growers in 32 states. ************************************************************************************ Environmental Working Group Says Farm Nitrate Runoff Increasing The Environmental Working Group says nitrate pollution from crop fields is getting worse in farm country. Wednesday, the group released a new report and interactive map detailing nitrate levels in water supply systems. EWG obtained water testing data under public records laws between 2003 and 2017. The tests detected elevated levels of nitrate in the tap water supplies of more than 4,000 community water systems in the states with the most widespread contamination, California, Illinois, Iowa, Kansas, Maryland, Nebraska, Oklahoma, Pennsylvania, Texas and Wisconsin. The data, EWG says, includes tap water supply systems for more than 45 million Americans. Each of the systems was contaminated with nitrate at or above three milligrams per liter, at least once in those 15 years. The Environmental Protection Agency considers three milligrams per liter in groundwater used for drinking water an indication of contamination above naturally occurring levels. The interactive map is available on the Environmental Working Group website, ewg.org.
| Rural Advocate News | Thursday June 25, 2020 |
Washington Insider: Business Groups to Fight Visa Limits The Hill is reporting this week that business groups are pushing back on the president’s new limits on work visas and are hinting at possible legal action against the recent executive order they see as an attack on legal immigration. The backlash follows President Trump’s Monday executive order that slapped new limits on foreign workers, a “hard line immigration move seen as an appeal to his base as the presidential election draws near,” The Hill says. The U.S. Chamber of Commerce, which had lobbied the White House against imposing the order, said it “is likely to stifle job gains at a time when the economy needs fewer restrictions, not more.” The Chamber’s CEO, Thomas Donohue told the press that the president’s proclamation is a “severe and sweeping attempt to restrict legal immigration. Putting up a ‘not welcome’ sign for engineers, executives, IT experts, doctors, nurses and other workers won’t help our country, it will hold us back.” Donohue had called on the president to not impose the visa policies. The Chamber’s top lobbyist, Neil Bradley, also pressed National Economic Council Director Larry Kudlow and White House senior adviser Jared Kushner on the issue in a letter last month. The order now could trigger a flurry of lawsuits, something the Chamber and others haven’t ruled out, The Hill said. It says it is “considering all available options” to ensure our immigration system allows employers to meet their workforce needs, Jon Baselice, executive director of immigration at the Chamber, told The Hill. In addition, a National Association of Manufacturers spokesperson told The Hill on Tuesday that litigation isn’t off the table for them either. The executive order suspends the issuance of temporary work visas, including H-1B visas, H-2B visas, H-4 visas, L-1 visas and certain J-1 visas, through the end of 2020. H-2A visas for agriculture are not affected by the order. H-1B visas are set aside for skilled workers, especially in the technology industry, and H-4 visas are given to their spouses. H-2B visas apply to seasonal workers; J-1 visas are for researchers, scholars and au pairs; and L-1 visas are for executives who transfer to the U.S. after working for the same employer abroad. Google, Apple, Amazon, Twitter and Uber are among technology companies that have spoken out against the president’s proclamation. In addition to the legal ramifications, experts argue that the president’s order is bad for the economy, especially at a time when it’s trying to climb out of the coronavirus hole. “If you really care about the U.S. economy, U.S. competitiveness and opportunity for U.S. citizens, cutting back on skilled immigration has very much the unintended consequence of being harmful in those domains,” said Bill Boulding, dean of Duke University Fuqua School of Business. Alexander Arnon, a senior analyst at Penn Wharton Budget Model working on immigration issues, said business groups have study after study to back up their opposition to the administration’s action. “The arguments made in the proclamation are not sound and there is a lot of reason to believe this will hurt the economic recovery,” he said. The administration claims the order will help the unemployment rate, which more than tripled after the pandemic took hold. It argues that during “extraordinary circumstances” these visas “pose an unusual threat” to American workers seeking employment. “I understand the instinct to protect American workers, to give them opportunity in light of what is really a terrifying economic crisis,” Boulding said. “Having said that, the evidence is clear that this is not the way to do it. What we know in terms of the economic impact of skilled immigration, skilled immigration is actually job-creating for Americans.” Even Sen. Lindsey Graham, R-S.C., a staunch Trump ally, said that suspending the temporary work visas will have a “chilling effect” on the economic recovery. And, the head of the National Association of Manufacturers, Jay Timmons, said in a blunt statement that the president’s action weakens the manufacturing industry, “a sector the president has long courted with his criticism of previous trade agreements.” Like Donohue, Timmons sent a letter to the President earlier this month about how immigrants’ contributions often create opportunities for American workers and strengthen the overall economy. The effect of the order will likely take months to show up in any measurable way in the economy but major companies are already warning of immediate, drastic effects for their workers. The Business Roundtable, which is made up of CEOs from leading U.S. companies with Walmart president and CEO Doug McMillon serving as chairman, said its members are worried about the effect of the executive order and “fear that it will disrupt business operations, the lives of our employees and ultimately harm our ability to do our part to rebuild the economy,” the group said in a statement. So, we will see. Access to overseas sources of labor has long been valuable to U.S. firms, so the new order has come as something of a surprise to a number of large operations. However, whether they succeed in softening the administration’s stance is an issue producers should watch closely as the season advances, Washington Insider believes.
| Rural Advocate News | Thursday June 25, 2020 |
Lawmakers Focus On Major Meat Packers, Worker Protections and Exports Sens. Elizabeth Warren, D-Mass., and Cory Booker, D-N.J., want information from four major U.S. meat companies on the actions they took to protect workers from COVID-19 and on the level of meat they produced during March-May, their level of exports to China and to other countries, the average increase in wholesale prices, average change in prices paid to producers and whether they increased their imports of livestock from outside the U.S. The letter was sent to Tyson Foods, JBS USA, Cargill and Smithfield Foods. The lawmakers express alarm at exports of U.S. pork, beef and poultry to China and other destinations over the period, stating that exports of beef and pork totaling 1.3 billion pounds from March 20 through early June “actually exceeded the amount of lost production” from issues related to COVID-19. “Indeed, your companies manipulated this crisis to achieve substantial deregulatory measures that placed your workers at even greater risk,” the letter stated. The lawmakers requested the companies provide the information by June 30.
| Rural Advocate News | Thursday June 25, 2020 |
USDA Sent Requests On Apples, Potatoes Relative To CFAP Program A group of House lawmakers and the National Potato Council (NPC) have sent USDA Secretary Sonny Perdue letters calling for apples to be made eligible for payments under the Coronavirus Food Assistance Program (CFAP) and for expanded payments to potato producers. The lawmakers argue that apples prices fell from 6.5% to 24.9% over the period covered by CFAP and shipping volumes of the product have declined 24%. “This steep price decline clearly makes apple growers eligible for CFAP payments, based on the USDA’s requirement of a 5 percent-or-greater price decline between mid-January and mid-April as a result of the COVID-19 pandemic,” the lawmakers said. NPC said data shows that potatoes have seen a price decline of 20.51% over the period covered by CFAP, well above the price threshold of a 5% decline in prices set by USDA. NPC calls on USDA to make potatoes eligible for category one payments, to expand the category two payment level from the current four cents per pound and the category three payment level of one cent per pound. Both requests were sent to USDA via letters dated June 22. NPC is also holding their virtual summer meeting today with a focus on the COVID-19 impacts on the industry. USDA has paid out over $4 billion in the program as of June 22.
| Rural Advocate News | Thursday June 25, 2020 |
Thursday Watch List Markets Thursday is a busy day for reports. At 7:30 a.m. CDT, USDA's weekly export sales, U.S. jobless claims, May durable goods orders and an estimate of first-quarter U.S. GDP are released along with an update of the U.S. Drought Monitor. USDA's Hogs and Pigs report is due out at 2 p.m. CDT, the first inventory estimate since meat plants were closed due to coronavirus concerns. Weather Thursday will be dry with very warm to hot conditions across all primary crop areas. Rain will be confined to light showers on the Gulf Coast and in isolated areas of the Plains. This combination will favor crop growth and wheat harvest.
| Rural Advocate News | Wednesday June 24, 2020 |
USDA: Food Box Program Reaches 20 Million Boxes Distributed The Department of Agriculture says the Farmers to Families Food Box program has distributed more than 20 million food boxes to families affected by the COVID-19 pandemic. In the announcement Tuesday, Agriculture Secretary Sonny Perdue stated, “This milestone is a testament that the program is accomplishing what we intended, supporting U.S. farmers and distributors and getting food to those who need it most.” In April, Secretary Perdue announced the food box effort as part of the Coronavirus Food Assistance Program developed to help farmers, ranchers and consumers in response to the COVID-19 national emergency. In under 30 days, the program contracted for $1.2 billion in food products including $461 million in fresh fruits and vegetables, $317 million in a variety of dairy products, $258 million in meat products and $175 million in a combination box of fresh produce, dairy or meat products. Distribution of the food boxes across the United States began on May 15, 2020. ************************************************************************************ Judge Rules Glyphosate Doesn’t Require Cancer Warning A federal judge this week sided with an agriculture coalition issuing a permanent injunction against the California warning requirement of Proposition 65 for glyphosate. The ruling removes the cancer warning on glyphosate. The judge in the case says providing misleading or false labels to consumers “undermines California’s interest in accurately informing its citizens of health risks.” Two years ago, the same judge ruled government agencies and health organizations that have reviewed studies on glyphosate have found there was no evidence that it caused cancer. The ruling says it would be "misleading at best” to force parties to state on glyphosate-containing products that the products were "known to the state to cause cancer." The judge says developments since then "do not change the court's conclusion.” Lead plaintiff in the case, the National Association of Wheat Growers, welcomed the injunction. The association stated, “this is a great win for wheat growers and farmers across the United States.” ************************************************************************************ Farm Households Report Off-Farm Jobs offer More Stable Income New data from the Department of Agriculture shows nearly half of all family farmers and their spouses reported having a job off the farm in 2018. USDA’s Economic Research Service reports the majority of households, regardless of farm size, say they work off the farm because it is more lucrative than farm work, provides more reliable income, and may offer health and retirement benefits. Among small family farms, those with annual gross cash farm income under $350,000, about 88 percent reported working off the farm because it was more reliable and 75 percent because it was more lucrative. Among large-scale farm households, those with annual gross cash farm income of $1 million or more, about 72 percent reported working off the farm because it was more reliable and 51 percent because it was more lucrative. About 40 percent of all principal operators or their spouses who work off the farm listed farm-related financial stress as a reason for having a job off the farm. ************************************************************************************ Senate Candidate Calls on EPA’s Wheeler to Resign An Iowa candidate for the U.S. Senate is calling on Environmental Protection Agency Administrator Andrew Wheeler to resign. Theresa Greenfield, a Democratic challenger to Republican Senator Joni Ernst, says, “Wheeler must step down immediately.” Greenfield says Iowa farmers “deserve answers for why Senator Ernst voted for a fossil fuel lobbyist to run the EPA in the first place.” Last year, Ernst did suggest she would call for Wheeler’s resignation if his biofuels promises are not fulfilled. Last week, Ernst co-sponsored a bill that would "approve certain advanced biofuel registrations that have languished before the EPA.” Recent polling by the Des Moines Register found 46 percent of likely Iowa voters say they would back Greenfield if the election were held today, and 43 percent say they would support Ernst. Iowa is the top state for biofuels production, with 43 ethanol plants capable of producing over 4.5 billion gallons annually, according to the Iowa Renewable Fuels Association. ************************************************************************************ Center for American Progress Pitches Conservation Easement Expansion The Center for American Progress calls on lawmakers to pass broad conservation efforts. The thinktank launched “The Race for Nature” Tuesday, its plan to stem nature loss through conservation easements. The organization says private landowners are going out of their way to protect wildlife habitat, but "the coronavirus-induced economic collapse will likely deal a catastrophic blow to families who make their living off their lands." By definition, conservation easements are voluntary, legal agreements that permanently limit uses of the land to protect its conservation values. The two-phased proposal calls on lawmakers to pass the first phase by September of this year. The first phase of the plan would increase funding for existing conservation easement programs, help landowners gain access to easements more quickly, and pilot new emergency conservation easement programs. The second phase targets the 2023 farm bill, saying lawmakers should codify reforms that further simplify and accelerate the implementation of conservation easement programs. ************************************************************************************ Farm Groups Launch Free Stress Management Course A group of farm organizations just launched free online training focusing on farm stress. The training course is funded by Farm Credit, with partnership from the American Farm Bureau Federation and National Farmers Union. The groups say the course will help farmers, their families and neighbors identify and cope with stress. It provides participants the skills to understand the sources of stress, manage their own stress, learn the warning signs of stress and suicide, identify effective communication strategies, and connect farmers and ranchers with appropriate mental health and other resources. The challenges of ongoing low commodity prices, trade wars and extreme weather events have dramatically affected farmers and ranchers for years. Add the COVID-19 pandemic and its economic disruptions and that stress multiplies. The groups say stress among farmers and ranchers is felt throughout farm operations and seeps into cities and towns across the country. Anyone can register for the free online training course. Visit FarmCredit.com to learn more.
| Rural Advocate News | Wednesday June 24, 2020 |
Washington Insider: USTR Policy Cure-All, More Tariffs Bloomberg is reporting this week that with COVID-19 cases spiking in nearly a dozen U.S. states, this may seem like a strange time to constrain America’s ability to obtain critical medical supplies and drugs. However, “new tariffs are exactly the strategy that America’s top trade official says is the best way to combat the coronavirus pandemic.” The report cites Robert Lighthizer, the U.S. Trade Representative, who says he is a “firm believer that the things we need to fight the pandemic should be made in America,” The U.S. official was addressing members of the House Ways and Means Committee last week. “I’m not in favor of reducing tariffs on the things we need. I would be far more in favor of increasing tariffs on the things we need.” Lighthizer’s comments come at a pivotal moment in the health crisis as fresh outbreaks spark fears that a second wave may cross the globe and force governments into a dilemma where they must consider whether it is better to hoard critical medical supplies while redoubling their ability to produce them domestically, or help expand global access to medical goods so all nations can collectively fight the pandemic. Bloomberg says Lighthizer is in the first camp while the European Union, Canada, Japan, Brazil and nearly a dozen others are in the second, “working to lower trade barriers that harm other nations’ ability to fight the virus.” The emerging alliance, which calls itself the “Ottawa Group,” is discussing an EU-led initiative to eliminate tariffs on pharmaceuticals and medical supplies in order to “help ensure that the world is better prepared to deal with similar future crises." The U.S. administration’s preference for protectionism remains clear, Bloomberg says. In his testimony, Lighthizer flatly rejected the idea of joining the EU’s medical goods deal and blamed the World Trade Organization for hindering America's access to essential medicines,"casting specific ire on a 1994 agreement that eliminated tariffs on pharmaceutical goods.” “Countries got together and said we will all agree to have zero tariffs on a certain list of pharmaceutical products and then we will just give that benefit to the rest of the world, which struck me as really, really crazy,” Lighthizer said. Also, in yet another trade policy action, the administration says it is considering re-imposing tariffs on aluminum imports from Canada. Bloomberg says it expects an announcement by the end of the week. Bloomberg says the U.S. is threatening Canada with new tariffs if it “refuses to impose export restrictions on aluminum.” It expects those to be 10% tariffs on Canadian aluminum, to be implemented by July 1 – just days before the new U.S.-Mexico-Canada trade deal enters into force. It follows Lighthizer’s expressions of concern about recent struggles by American aluminum producers as demand evaporated amid the global pandemic. Lighthizer told the Senate Finance Committee in a hearing last week that recent surges in metal imports from North American neighbors are “of genuine concern to us now,” and that his office was looking at the issue. “I would say there have been surges on steel and aluminum, substantially from Canada, some from Mexico, and it is something that we’re looking at and talking to both Mexico and Canada about,” he told the panel’s top Republican, Senator Chuck Grassley, R-Iowa. Under the May 2019 agreement, which resulted in initial tariffs being lifted, Canada has to limit its retaliation to the U.S. metals sector and cannot hit American agriculture, Lighthizer told Grassley. Ironically, the only three U.S. aluminum producers -- Alcoa Corp., Century Aluminum Co. and Magnitude 7 Metals LLC -- disagree whether tariffs should be re-imposed, Bloomberg said. The American Primary Aluminum Association, which represents Century Aluminum Co. and Magnitude 7 Metals LLC., has asked Lighthizer to reimpose a 10% tariff on imports of Canadian aluminum, saying a rise in metal coming from the country has caused the price to collapse. However, the Aluminum Association of the U.S., which represents Alcoa Corp., Rio Tinto Group and dozens of other aluminum parts makers, argues that imports are virtually unchanged since 2017. Alcoa CFO William Oplinger said at a virtual bank conference in June that China’s overcapacity subsidized by the government is the real problem, and that he supports free trade with “those who trade freely, especially the Canadians.” So, we will see. Clearly, the administration is continuing to rely on “get tough tariff policies” which likely will continue to lead to retaliation from trading partners, as well as higher prices for domestic products. These strategies are continuing to be debated in the U.S. even amid anti-coronavirus strategies and should be watched closely by producers as they intensify, Washington Insider believes.
| Rural Advocate News | Wednesday June 24, 2020 |
US Meat Industry Mulls China’s Ban On Imports From One Tyson Foods Plant China’s action to bar imports of poultry from the Springdale, Arkansas, Tyson Foods plant continues as a discussion point in the U.S. meat industry, with most agreeing that it will not have a significant impact unless it is expanded. "Hopefully it's not going to mean anything," said Jim Sumner, president of the USA Poultry & Egg Export Council. "If it remains at just one plant, it will not have any meaningful impact, but we don't know what's going to happen." He also noted that the product is frozen and spends some 30 days in a container traveling to China. “So there is zero possibility of a live virus from the U.S. showing up in frozen poultry as it has been shipped by ocean carrier halfway around the world.” A spokesman for Tyson said their products are safe and hoped the issue can be resolved in talks between the two countries.
| Rural Advocate News | Wednesday June 24, 2020 |
Phase One Trade Deal Intact, Says Trump Financial and commodity markets swooned Monday evening after reports of White House trade adviser Peter Navarro saying the phase-one agreement with China was “over.” Navarro made the comments in a Fox News interview that focused heavily on the coming book by John Bolton, with the interviewer throwing a “last question” at Navarro asking him if the deal was over. He responded that “it is,” adding he thought a turning point on the matter came after the COVID-19 news came out almost immediately after the phase-one agreement was signed. As financial and commodity markets reacted, Navarro sought to pull his remarks back. And, President Donald Trump tweeted, “The China Trade Deal is fully intact. Hopefully they will continue to live up to the terms of the Agreement!” From China, Foreign Ministry spokesman Zhao Lijian said of Navarro, "He consistently lies and has no honesty and trustworthiness.” As for the phase one agreement, Zhao told reporters at a briefing, "China's stance on the issue has been consistent and clear."
| Rural Advocate News | Wednesday June 24, 2020 |
Wednesday Watch List Markets The latest weather forecasts continue to earn the attention of traders as well as any export news that surfaces. The U.S. Energy Department will have its weekly report of energy inventories, including ethanol at 9:30 a.m. CDT. Weather Wednesday features shower and thunderstorm activity in the Delta and Deep South. Other primary crop areas will be dry with seasonally warm temperatures. This combination will favor row crop progress and Southern Plains wheat harvest.
| Rural Advocate News | Tuesday June 23, 2020 |
China Suspends Exports from Tyson Foods Plant China Sunday suspended poultry exports from an Arkansas Tyson Food's processing plant where workers tested positive for COVID-19. China’s General Administration of Customs announced the suspension after Tyson Foods confirmed a cluster of COVID-19 cases at its facility in Springdale, Arkansas. A Tyson spokesperson told Reuters the company is investigating the matter, adding, “It is important to note that the World Health Organization, the Centers for Disease Control and Prevention, USDA and the U.S. Food and Drug Administration agree that there is no evidence to support transmission of COVID-19 associated with food." China also halted exports from a pork processing facility in Germany following an outbreak of COVID-19 at the plant. China has stepped up food inspections for the novel coronavirus in recent weeks. Reuters says Beijing began testing meat, seafood and fresh produce for the coronavirus last week, and some ports were opening all containers of meat to carry out coronavirus tests. ************************************************************************************ New WOTUS Rule Becomes Law The Trump Administration's new and scaled-back Waters of the U.S. rule became law Monday after last-minute attempts to block the rule. A federal judge late last week denied an effort to prevent implementation of the new regulation, called the Navigable Waters Protection Rule. The challengers claim the new rule removes protection from many U.S. waterways. WOTUS, now NWPR, has been the subject of multiple lawsuits, including some examined by the Supreme Court. In the order denying the motion for temporary relief, the Judge writes, “In the prior cases, the issue was always whether the agencies had gone too far in extending the scope of federal regulation. Now, the question is whether the agencies have not gone far enough.” That judge ultimately sided with the EPA. However, a federal judge in Colorado rejected the Section 404 permit process included in the new rule, which refers to the Corps of Engineers' authority to issue permits for the discharge of dredged or fill material into navigable waters. ************************************************************************************ Court Allows Dicamba use this Season A late Friday court decision confirms farmers may use existing stocks of dicamba herbicides this growing season. The Ninth Circuit appeals court, which vacated the registrations of three dicamba herbicides earlier this month, denied a petition to stop use of the products already purchased by farmers and applicators. The ruling applies to Bayer’s XtendiMax, BASF’s Engenia and Corteva’s FeXapan herbicides. Additionally, during its series of late evening orders on June 19, the Court granted both CropLife America's and a grower coalition's requests to file an amicus brief. The brief supports the Environmental Protection Agency’s order to allow use of the products. That brief highlighted the devastating consequences that would result if the NGO's request were granted and growers could not use existing stocks. The request counters EPA guidance that allows existing stocks use when registrations are vacated, in accordance with the Federal Insecticide, Fungicide, and Rodenticide Act. The American Soybean Association says, “American growers and the public are fortunate that a proper administrative and judicial-review framework exists.” ************************************************************************************ Senate Ag Committee Urges USDA to Extend WIC Flexibilities The Senate Agriculture Committee Monday sent a request to Agriculture Secretary Sonny Perdue to extend existing flexibilities for the Special Supplemental Nutrition Program for Women, Infants and Children. The Senators seek the extension through September 30, 2020, as authorized by the Families First Coronavirus Response Act. In a letter to Secretary Perdue, the Senators wrote the extension would “provide certainty and availability to WIC participants, providers and vendors navigating variable phased re-opening procedures across public, private, and health sectors.” WIC program flexibilities granted by the Department of Agriculture for the COVID-19 pandemic emergency, through state agencies, have helped eligible pregnant women, mothers, and their infants and young children to access and use food benefits while navigating social-distancing protocols. The Senators say month to month extensions, as followed currently, are challenging for states to plan effectively and increase administrative burden. The bipartisan letter was signed by several members of the Senate Agriculture Committee. ************************************************************************************ Missouri Farm Bureau Survey Finds Broad COVID-19 Impacts A Missouri Farm Bureau survey brings to life many of the hidden effects of COVID-19 on farmers and rural communities. While the on-farm impacts have been dramatic, the personal effects are even more painful to read, according to Missouri Farm Bureau. Farmers in the survey report: “I have not seen my first grandchild yet.” “My daughter didn’t get to get married like she planned.” “I’m lonely and miss my friends.” Many respondents expressed feelings of isolation, loneliness and even depression. Inability to attend church and fellowship with friends has had a big impact on rural life. Although there were many differing opinions, over 63 percent of respondents agreed or strongly agreed that they take COVID-19 seriously. The agricultural effects have been severe as well. Nearly one-quarter of livestock farmers surveyed have had a meat processor reduce the normal schedule of animals they deliver for processing. The same percentage have had to locate an alternate processing facility for animals. The survey was completed by 377 people in Missouri. ************************************************************************************ Virginia Attorneys Plead Guilty in RoundUp Extortion Scheme Two Virginia attorneys pled guilty last week for a scheme to extort Monsanto out of $200 million last year. Timothy Litzenburg and Daniel Kincheloe each pleaded guilty to one count of transmitting interstate communications with the intent to extort. The U.S. Department of Justice says the two admitted they approached Monsanto and threatened to make public statements alleging the company had significant civil liability for manufacturing a purportedly harmful chemical used in RoundUp. They proposed reaching a “consulting agreement" with the company for $200 million, which would bar the attorneys from representing their clients as plaintiffs in litigation against Monsanto, which is now Bayer Crop Science. The fees were proposed to help their clients. However, the pair planned to split the funds among themselves and their associates. The attorneys threatened that if Monsanto did not accept their consulting plan, “they and others would commence litigation that would become an ongoing exponentially growing problem” for the company, according to the Justice Department. The pair will be sentenced in September.
| Rural Advocate News | Tuesday June 23, 2020 |
Washington Insider: Pace of Virus Testing Criticized While there is modest agreement that more virus testing is essential to control the pandemic, the Washington Post says the administration has yet to “distribute nearly one-third of the funds provided by Congress for testing and contact tracing.” The report cites Senate Democratic leadership as the source of the information. The Department of Health and Human Services has neither spent nor detailed how it plans to spend $8 billion out of a $25 billion pot to be used for stemming the virus’s spread through diagnostic and antibody testing and contact tracing, Senate Minority Leader Charles Schumer, D-N.Y., and Sen. Patty Murray, D-Wash., told the Post. The funds were provided as part of the fourth pandemic relief bill passed by Congress at the end of April. “While it has been months since these funds were appropriated, the administration has failed to disburse significant amounts of these funds, leaving communities without the resources they need to address the significant challenges presented by the virus,” according to a letter the pair wrote to HHS Secretary Alex Azar last week. HHS responded that it has distributed $14 billion of the $25 billion authorized, mostly to states and localities, as directed in the legislative text. An agency spokeswoman noted that Congress “largely didn’t provide specific directions for where the rest of the money should go,” Michael Caputo, assistant secretary for public affairs, said. Congress has failed to give the agency “clear direction in law” for how to spend the money. “Now members [of Congress] are contacting HHS with their individual priorities and complaining the dollars are not spent to their wishes,” Caputo said. “Regardless, HHS is committed to working with Congress to ensure the healthcare delivery system gets the support needed at this time.” The U.S. has now conducted more than 26 million coronavirus tests, equivalent to about 8% of the nation’s population. The administration has largely met testing goals Azar laid out in May, after an initial slow response that won it heavy criticism. Still, the ramped-up testing now reveals a troubling reality, the Post says: Coronavirus cases are on the rise in many states, as lockdowns ease and Americans start mingling more. While part of the rise may be due to increased testing capturing more cases, that doesn’t fully explain the spikes, experts say. President Trump appeared to mock the situation at his campaign rally in Tulsa Saturday night, calling widespread testing a “double-edged sword.” “Here’s the bad part,” Trump said. “When you do testing to that extent, you’re going to find more people, you’re going to find more cases. So I said to my people, ‘Slow the testing down, please!’” A White House official quickly downplayed the remarks as “joking,” and White House trade adviser Peter Navarro told CNN Sunday the comment was intended as a “light moment,” and was “tongue-in-cheek.” But the U.S. did lag behind other countries in ramping up testing for COVID-19, the Post said. The tests are now more widely available, but are not necessarily being used by everyone who might need them. In addition, the U.S. was beset by “denial and dysfunction” as the coronavirus raged, the Post said. Of the $25 billion Congress designated for the testing and contact tracing effort, $11 billion was for states and localities to help develop, purchase and process COVID-19 tests and carrying out contact tracing -- a procedure in which people who may have had contact with an infected person are asked to self-isolate for a period of time. Smaller amounts are earmarked for sub-agencies and offices within HHS, including the National Institutes of Health, the Centers for Disease Control and Prevention and the Biomedical Advanced Research and Development Authority. However, the Democratic senators said that about one-third of the money provided by Congress has yet to be disbursed by HHS, or even designated for anything specific. Schumer and Murray, who is the top Democrat on the Senate Appropriations subcommittee that handles HHS spending, wrote they’re concerned about the agency’s lack of speed as the country grapples with the virus. They urged that the testing funds “should be disbursed immediately with emphasis on addressing two major unmet needs: contact tracing and collecting data on COVID-19 racial and ethnic disparities.” They’re also concerned about the pace at which HHS is awarding another $2 billion to help cover testing costs for uninsured Americans. “This administration will put our country at grave risk if it tries to declare an early victory, leave lifesaving work undone, and leave resources our communities desperately need sitting untouched,” the letter says. So, the basic disagreement over how the nation should respond to the pandemic continues, especially as the virus continues to spread. This is a debate producers should watch closely as it intensifies especially if the disagreement continues to deepen as now appears likely, Washington Insider believes.
| Rural Advocate News | Tuesday June 23, 2020 |
Trump Administration WOTUS Rule Survives One Initial Court Test The Waters of the U.S. (WOTUS) rule put forth by the Trump administration to replace the Obama-era version will go into effect today after a federal judge in San Francisco denied a motion to block implementation of the plan. More than 12 states sought to suspend implementation of the rule. This decision has some expecting that other court challenges of the plan may not be successful. However, a federal court in Colorado granted the state’s request to freeze implementation of the rule., The court ruled the state was likely to succeed in challenging the administration’s version of the rule. To put the rule into effect in Colorado, only to have it struck down, “would likely create unnecessary confusion among the regulated community about what standard really applies,” the judge wrote.
| Rural Advocate News | Tuesday June 23, 2020 |
China Halts Imports From Tyson Plant As Workers Test Positive For COVID-19 China suspended poultry imports from a Tyson Foods plant in Arkansas where hundreds of employees tested positive for COVID-19. The suspension issued Sunday covered products that have arrived in China or are about to arrive there, according to China’s General Administration of Customs, but there was no indication given on the number of shipments or tonnage potentially involved. Tyson Foods said it was looking into the situation. U.S. officials from the Food and Drug Administration (FDA) have insisted there is no sign that food is a transmission method for COVID-19. Tyson on Friday said it had tested 3,748 of its employees at seven of its Arkansas facilities from June 4-13 and 481 tested positive for COVID-19. About 95% showed no signs of infection when they were tested. China has stepped up testing of imported products and has asked firms exporting products to the country to declare their products do not contain COVID-19 in the wake of an outbreak at a major wholesale market in China.
| Rural Advocate News | Tuesday June 23, 2020 |
Tuesday Watch List Markets Tuesday morning grain markets are trying to shake off Monday evening confusion about the status of the trade deal with China. President Donald Trump tweeted the agreement is "fully intact." The latest weather forecasts continue to captivate trader attention with any export news a close second. Early Tuesday, trade will likely respond to Monday afternoon's Crop Progress report. The only official report of the day is new home sales in May, set for 9 a.m. CDT. Weather Tuesday features light to locally moderate showers in the eastern Midwest and the Southeast, offering some easing of recent drier conditions. Meanwhile, moderate to heavy rain will occur in portions of the far Southern Plains with some flood and severe weather threat. Other crop areas will be dry. Temperatures will be seasonally warm in most areas, favorable for crops and livestock.
| Rural Advocate News | Monday June 22, 2020 |
Farmers Still Battling Hog Backlogs The backlog of hogs in states hit hardest by the meatpacking industry crisis is just now easing up somewhat. Hundreds of thousands of hogs were killed by producers who had nowhere to send the animals for processing. While that number is short of the initial slaughter estimates of millions of hogs, the pork industry still needs financial assistance to cover the cost of euthanizing animals as well as for the price losses from COVID-19. They’re also asking for help getting mental health resources for farmers who were understandably disturbed by having to kill their animals for disposal. “The drain on equity and the financial and emotional crisis that farmers are facing is not resolved,” says Dave Preisler (PRICE-lehr), CEO of the Minnesota Pork Producers Association. Producers have gone to great lengths to reduce the backlog and avoid on-farm slaughter. Some have been shipping hogs to processors out of state or selling directly to individuals looking to stockpile meat. Others have started contracting with smaller processors, who’ve seen an unprecedented rise in their business. Still, Politico says those measures haven’t fully solved the large pileup of excess hogs. ********************************************************************************************** EPA: 52 “Gap Year” SRE Petitions Filed The Environmental Protection Agency released an updated list of small refinery exemptions that shows smaller refiners have filed 52 “gap year” SRE petitions. Those petitions cover Renewable Fuels Standard Compliance from 2011 through 2018. Biomass Magazine says the filing is to circumvent a recent ruling from the Tenth Circuit Court that struck down three SREs approved by the EPA. The ruling also determined that the agency cannot extend exemptions to any small refinery whose earlier temporary exemptions had lapsed. A challenge to the court’s decision was rejected in early April. If the ruling is eventually applied nationally, it will limit eligibility for future SRE petitions to a handful of the nation’s small refiners. However, reports recently began to surface that several small refiners were filing “gap-year” SRE petitions to maintain eligibility for future SREs. The gap-year petitions are designed to provide impacted refineries with a continuous chain of SRE approvals, allowing the affected refineries to continue to be eligible for SREs in the future. Several biofuel groups have strongly condemned the gap-year filings as an effort to get around the Tenth Circuit Court ruling. ********************************************************************************************** Renewable Fuel Groups React to 52 “Gap-Year” SRE Petitions Two of the nation’s key renewable fuel groups reacted to the Environmental Protection Agency’s announcement that 52 new small refinery exemption petitions have been filed. The National Biodiesel Board is asking EPA Administrator Andrew Wheeler to immediately reject the petitions that cover compliance years from 2011-2018. Kurt Kovarik is the NBB Vice President of Federal Affairs. He says, “EPA’s consideration of small refinery exemption petitions going back to 2011 flies in the face of the recent 10th Circuit Court decision. By rolling the clock back, there appears to be no length the EPA won’t go to help refiners undermine the Renewable Fuels Standard.” Kovarik says the handouts would come at the expense of ethanol and biodiesel. Growth Energy says the “gap filings” are designed to reconstitute a continuous string of exemptions to circumvent court limits on new oil industry handouts. “This absurd maneuver is a blatant attempt to dodge the law at the expense of rural communities,” says Growth Energy CEO Emily Skor. “EPA’s dashboard confirms that the refiners hope to rewrite years of history just to bypass the 10th Circuit Court and push more biofuels out of the marketplace.” ********************************************************************************************** CoBank: Ethanol Industry Needs to Transform Itself A new report from CoBank’s Knowledge Exchange says the ethanol industry may have to diversify itself in the future. The report says excess production capacity and reduced demand will force the U.S. ethanol industry to “transform its business model to create more value and improve its operational efficiency.” CoBank predicts that consolidation within the industry will lead to larger and more financially stable companies with diversified ethanol co-product offerings by 2025. “While ethanol remains an attractive business with long-term potential, the industry will need to evolve and diversify beyond fuel ethanol,” says Kenneth Zuckerberg, CoBank lead grain and farm supply economist. “That diversity will need to include higher-margin co-products like high protein distillers’ grains for animal feed, liquid carbon dioxide for refrigeration, beverage grade alcohol, and other industrial products. COVID-19 led to businesses shutting down and people staying at home, causing significant ethanol demand destruction. The industry had one billion gallons of excess capacity at the start of 2020, with that number projected to rise to 3.9 billion at the end of this year before it settles to 2.4 billion at the end of 2021. Strong export growth would help reduce the excess, but current projections don’t support such an outcome. ********************************************************************************************** Dairy Safety Net Signup Begins October 12 for 2021 Coverage The USDA’s Farm Service Agency says safety-net signup for 2021 Dairy Margin Coverage begins on October 12th and runs through December 11th of this year. DMC has already triggered payments for two months for those producers who signed up for 2020 coverage. “If we’ve learned anything in the past six months, it’s to expect the unexpected,” says FSA Administrator Richard Fordyce. “Nobody would have imagined the significant impact that current, unforeseen circumstances have had on an already fragile dairy market.” Fordyce says it’s during unprecedented times like these that the importance of offering agricultural producers support through the delivery of farm bill safety-net programs like DMC becomes readily apparent. As of June 15th, FSA has issued more than $100 million in much-needed program benefits to dairy producers who purchased DMC coverage for 2020. The DMC offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. More than 13,000 operations enrolled in the program for the 2020 calendar year. ********************************************************************************************** Americans Support COVID-19 Aid for Farmers Trust in America’s farmers and ranchers remains high amid the devastating blow delivered this year by COVID-19. A new poll conducted by the American Farm Bureau shows that 84 percent of Americans trust the nation’s farmers. That same number also supports financial assistance from the government for farmers struggling to keep from going under because of the pandemic. “The results of the survey indicate a growing understanding of how important a stable food supply is to the health and well-being of our nation,” says AFB President Zippy Duvall. “Shortages at grocery stores and other food supply chain shockwaves caused by the pandemic gave many people a new understanding of the crucial role America’s farmers and ranchers play in their survival through COVID-19.” Duvall says it’s “heartening” to know that through it all, the American people’s trust in farmers is unwavering. Even more broadly, 59 percent of Americans also think that the federal government should classify U.S. agriculture as a matter of national security to ensure a stable food supply. USDA estimates suggest the decline in commodity value alone for 2019, 2020, and 2021 production totals almost $50 billion.
| Rural Advocate News | Monday June 22, 2020 |
Washington Insider: Problems With US Trade Policy The Hill this week is carrying an article by Robert Scott, who is a senior economist with the Economic Policy Institute. He notes that U.S. Trade Representative Robert Lighthizer once again reported to Congress that “the era of U.S. offshoring is over.” This is essentially the same message President Trump’s new "American Comeback" campaign ads carry, the article said. Scott charges that the Trump administration often touts returning trends in industries and jobs. In actuality, its policies are “actually failing to curb most of this offshoring.” They simply haven’t addressed the root causes of America’s growing trade deficits,” he said. The article pointed to “the reality” in which COVID-19 has wiped out much of the job gains seen in recent years. And, he warns that unless steps are taken now to curb dollar overvaluation, which makes imports artificially cheap in the U.S. market, along with tax incentives for offshoring, there won’t be a comeback. Scott also says that the administration has ignored the linkage between its policies and the rising trade deficit as it continues its “rosy pronouncements.” In his testimony last week, Lighthizer praised several companies that have scrapped offshoring efforts or have “announced” plans to move production to the U.S. And he praised both the U.S.-Mexico-Canada Agreement (USMCA), which takes effect July 1, and the current "phase one” China trade deal. Scott argues that increased domestic purchasing spurred by tax cuts and an expanded federal budget pushed average employment per manufacturing plant up between 2016 and 2019 -- but that offshoring continued throughout. Overall, the U.S. has lost more than 91,000 manufacturing plants and nearly 5 million manufacturing jobs since 1997 -- including nearly 1,800 factories that disappeared under the current administration between 2016 and 2018, Scott says. And, he thinks that any recent manufacturing gains were abruptly wiped out by the COVID-19 lockdown -- with a staggering 1.2 million manufacturing jobs lost this year. But U.S. manufacturing was struggling even before COVID-19, Scott says. Starting in 2014, the U.S. dollar has appreciated in fits and starts, climbing nearly 28 percent. “More than half of that rise has come since the administration’s tariffs were first imposed in March 2018.” Equally problematic, the 2017 Trump tax cuts on corporate profits incentivized offshoring for certain types of production while also raising after-tax profits, he says. This has attracted foreign capital to U.S. stock markets, spurring the dollar even higher. If the administration’s trade policy really encouraged “reshoring,” America’s trade balance would have improved. But the U.S. trade deficit in manufactured goods rose significantly between 2016 and 2019. “In fact, the real U.S. trade deficit has increased every year since 2016, reducing GDP growth by roughly one-quarter of one percent annually over the past three years,” Scott says. As for the USMCA, it is unlikely to resolve longstanding U.S.-Mexico trade issues, Scott charges. And, the “Phase One” China trade deal is a bust, too, Scott charges. China promised to increase purchases of U.S. goods and services by $200 billion over 2017 imports but is unlikely to meet these targets. Beijing has also strategically adjusted to the Trump tariffs. China is simply exporting more goods elsewhere, and the U.S. trade deficit with China’s trading partners rose rapidly in 2019. In fact, China’s overall trade surplus with the world climbed significantly in 2019. China also reduced the value of its currency by 11.4% against the U.S. dollar since March 2018, helping to offset the tariffs. The tariffs are a signature element of the administration trade agenda, and have helped sectors like steel and aluminum. But “increasing tariffs without taking steps to prevent the dollar’s appreciation, the overall benefits are simply neutralized,” Scott says. These problems have been compounded by mistakes on tax policy, Scott thinks. U.S. multinationals continually engage in massive, international tax avoidance, with some paying no income tax. The pharmaceuticals industry has reaped major rewards, and moved plants to countries with the lowest possible corporate tax rate. As a result, the U.S. now has a massive trade deficit in pharmaceuticals. The U.S. trade deficit is likely to shrink during COVID-19. But unless steps are taken to address dollar overvaluation and tax incentives for offshoring, these deficits will simply reemerge when recovery occurs. Washington must embark on major investments in infrastructure, R&D, training, renewable energy and other industrial policies. In 2016, President Donald Trump campaigned against globalization and failed trade deals that have hurt U.S. manufacturing. That strategy worked, Scott says, but the administration has since failed to deliver for working Americans. “Now the wheels are coming off,” Scott says and it is time for a meaningful rewrite of failed U.S. trade and economic policies. So, we will see. It is true that trade policy pressures abound, but also seems likely that since the administration and the Congress are tightly focused on alleviating impact of the virus concerns about trade deficits are unlikely to command new priorities. However, these are high stakes debates that should be watched closely as the election season advances, Washington Insider believes.
| Rural Advocate News | Monday June 22, 2020 |
EPA Now Shows 52 New Petitions Pending For Small Refinery Exemptions From RFS EPA’s dashboard showing the number of small refinery exemption (SRE) requests increased by 52 as of June 18, with those new requests for compliance years 2011 through 2018. The updated data now provides a level of petitions filed for prior compliance years under the Renewable Fuel Standard (RFS) in what ethanol backers say is an attempt by refiners to become eligible for SREs ahead based on the 10th Circuit Court ruling that determined for the a refiner to be eligible for SREs they had to be extensions of prior requests. “Petition counts include submissions from small refineries that are seeking reconsideration of petitions that were previously denied,” EPA said. “Accordingly, the count for any compliance year may include petitions from the same small refinery being represented as both a denial and still pending.” There also are 27 requests pending for the 2019 compliance year and one for the 2020 compliance year.
| Rural Advocate News | Monday June 22, 2020 |
China’s Purchases of US Ag Products Expected to Rise Shortly China plans to accelerate purchases of U.S. farm goods to comply with the Phase One trade deal with the U.S. following talks this week between Secretary of State Mike Pompeo and his Chinese counterpart. “During my meeting with CCP Politburo Member Yang Jiechi, he recommitted to completing and honoring all of the obligations of Phase One of the trade deal between our two countries,” Pompeo said in a tweet Thursday. China intends to step up buying of everything from soybeans to corn and ethanol after purchases fell behind due to COVID-19 disruptions, said two people familiar with the matter cited by Bloomberg. This would confirm the expectation cited by U.S. Trade Representative Robert Lighthizer in congressional testimony that he expected China to live up to their commitments in the Phase One deal and that their purchases of U.S. ag products – and other goods – would be rising soon. Bloomberg reported that through the first four months of 2020, China purchases of U.S. ag goods were at $4.65 billion, well shy of the total of $36.5 billion in U.S. ag products China committed to purchase in 2020. Another source cited in the Bloomberg report indicated that Chinese state buyers were being urged to make all efforts possible to meet the Phase One agreement terms. U.S. officials and trade sources have continued to maintain they fully expect the purchase commitments by China to be met and they also have reminded that China has also taken many actions on other trade issues that were covered in the Phase One agreement.
| Rural Advocate News | Monday June 22, 2020 |
Monday Watch List Markets Now summer has officially begun, traders will be checking the latest weather forecasts and any new export sale announcements. A report on U.S. existing home sales is due out at 9 a.m. CDT, followed by USDA's weekly report of grain export inspections at 10 a.m. USDA's monthly cold storage report is released at 2 p.m. CDT and the Crop Progress report is at 3 p.m. Updated crop ratings and winter wheat harvest progress will get most of the report's attention. Weather Showers and thunderstorms will cross the Midwest, portions of the Plains and Delta Monday, with mostly favorable moisture for developing crops. Temperatures will be seasonally mild in most areas; however, the far southwestern Plains will see some extreme heat.
| Rural Advocate News | Friday June 19, 2020 |
Lighthizer Testifies on China Trade Deal, Criticizes WTO U.S. Trade Representative Robert Lighthizer had a lot to say about the president’s economic agreement with China during testimony in Washington on Wednesday. He says Beijing is buying more American products and that the Asian nation would live up to the terms of the Phase One agreement. Lighthizer says his office is closely tracking the number of goods China is purchasing from the U.S. and is in frequent contact with Chinese officials. The New York Times says even though China has committed to purchasing $200 billion in goods by the end of next year, many analysts say that’s not realistic given the impacts of COVID-19 around the world. “Every indication is that despite COVID-19, China is going to do what it says it will do,” Lighthizer said during testimony. He pointed out the administration’s new or revised trade deals with Japan, Canada, and Mexico have improved terms for American businesses and farmers. However, he was more guarded on a possible deal with the European Union happening soon, accusing the EU of thinly-veiled protectionism. Lighthizer also renewed the administration’s fight with the World Trade Organization, saying the WTO needs “radical reform.” ********************************************************************************************** Organic Farmers say USDA “Let Down” Organic Dairies The Organic Farmers Association is asking members of Congress to ensure that USDA’s National Organic Program complies with the law and finalizes the Origin of Livestock rule as quickly as possible. A recent deadline for the National Organic Program to finalize the long-awaited Origin of Livestock rule has passed by. The Association says the rule is necessary to close a loophole in organic dairy standards that has supported rapid growth in larger organic dairies and consequently put family organic dairy farmers out of business across the country. As many as 70 organic farm organizations from around the nation sent a letter to members of Congress, including the House and Senate Ag Committees, asking them to pressure the USDA to make sure the NOP complies with a congressional mandate and finalizes the origin of organic livestock rule as soon as possible. “The organic community is united in the immediate need for this rule,” says Kate Mendenhall, Director of the Organic Farmers Association. “We are disappointed this long-awaited deadline passed without any action from the NOP.” The groups that signed onto the letter agree that continued delays in implementing the rule will prolong the dire economic consequences facing organic dairy farmers, as well as jeopardize consumer trust in the organic label. ********************************************************************************************** U.S. Dairy Calls for An End to EU Dairy Dumping into International Markets An economic analysis published this week shows the serious impact of the European Union’s Skim Milk Powder Intervention Program on U.S. dairy. The program hit U.S. farm-gate milk prices especially hard during 2016-2019. The report says the U.S. was economically harmed in three ways. First, the EU program depressed the global price of skim milk powder, lowering U.S. milk prices, and contributing to a $2.2 billion loss in 2018 and 2019. The program also inflated the EU market share, resulting in a drastically smaller export market share for U.S. dairy exporters, which led to export losses totaling $168 million in 2018-2019. Finally, the analysis says when the EU unleashed its stockpile of skim milk powder into the global marketplace, the disposal affected U.S. competitiveness in historically important export markets like Southeast Asia. The International Dairy Foods Association, the National Milk Producers Federation, and the U.S. Dairy Export Council sent a letter to U.S. Trade Representative Robert Lighthizer and Ag Secretary Sonny Perdue, pointing to the analysis as proof the EU’s SMP Intervention Program has wreaked havoc on the U.S. dairy industry. They’re asking the government to help prevent the EU from using future intervention practices to dispose of dairy products into the global market at discounted prices. ********************************************************************************************** Farm Progress Show is a Go The nation’s largest outdoor farm event is on in 2020. The Farm Progress Show is officially a go near Boone, Iowa, despite COVID-19. In making the announcement, organizers say the show is an essential business event that provides farmers with much-needed information and tools. “We know that the market is dealing with a lot of issues,” says Matt Jungmann, the event manager. “However, agriculture is a critical business for this country, and farmers are looking for ways to get better at what they do.” The Des Moines Register says the show attracts thousands of Iowa and U.S. farmers, as well as dozens of agricultural companies. The show is scheduled for September 1-3 and has drawn people from as many as 45 countries in previous years. Organizers say they will take safety precautions, including providing additional space to allow for social distancing, numerous hand sanitizing stations, and enhancing efforts to clean buildings. “Farmers are struggling with low corn, soybean, and other commodity prices, and they need more information and tools to boost profitability than ever before,” show officials said in their statement on Wednesday. The World Pork Expo and the Iowa State Fair were both canceled this year because of COVID-19. ********************************************************************************************** Growth Energy Applauds Streamlining Biofuels Approval Process Growth Energy CEO Emily Skor is pleased with legislation designed to reduce Environmental Protection Agency delays in approving applications to produce advanced biofuels under the Renewable Fuels Standard. “We applaud the bipartisan legislation designed to break the regulatory logjam holding back cellulosic biofuels,” she says. “Studies show that advanced biofuels can cut carbon emissions by 100 percent or more while providing a low-cost alternative to the petroleum-based aromatics that poison our air and threaten our health.” Growth Energy says major investments in low-carbon biofuels have been held hostage by regulatory delays, even as farmers and biofuel producers work together to harness clean energy from agricultural residue. “By keeping regulatory pathways blocked, EPA has put an artificial cap on advanced biofuels, limiting their growth under the RFS,” Skor says. “This important legislation will help clear the deck on long-overdue approvals and jumpstart growth at a time when revitalizing rural communities has never been more important.” The bill would set a 90-day deadline for EPA to act on petitions that have been pending for more than six months. It would also fast-track approval for advanced biofuels that have already been certified under state-based, low-carbon fuel programs. ********************************************************************************************** ASA Hires First-Ever Staff Economist The American Soybean Association hired Scott Gerlt (GER-ult), who is the first person to take on the role of staff economist with the organization. Gerlt lives in Missouri and will work out of the St. Louis office. He’s highly regarded within agricultural economic circles, thanks to his policy work with the Food and Agricultural Research Institute, where he has more than 10 years of experience. Some of that experience includes working with policymakers to develop the 2014 and 2018 Farm Bills. Gerlt grew up on a diversified farm with both row crops and livestock in Missouri. In the new role, he’ll provide insight on relevant agricultural economics and analysis of current and future ASA policy. ASA CEO Ryan Findlay says, “Having an economist on staff will enrich our internal discussions on issues and strengthen our public arguments for why policymakers need to take action on behalf of U.S. soybean farmers. It’s exciting for ASA to find someone with both his policy experience and enthusiasm for working directly with farmers.” The organization says Gerlt will provide a lot of clarity on what ASA is requesting from policymakers during lobbying and how it will affect U.S. soybean farmers and their communities.
| Rural Advocate News | Friday June 19, 2020 |
Washington Insider: New Trade Fight Over Taxes on Digital Commerce Bloomberg says this week that the U.S. has decided to withdraw from international efforts to harmonize global tax rules for digital companies and that the decision “risks triggering a new trade war.” The move came after the U.S. and an international group failed to agree on the best way to increase tax revenue from digital companies such as Facebook Inc. and Alphabet Inc.’s Google. These companies have long been targets for cash-strapped governments who are interested in tapping their deep pockets. The U.S. says digital taxes unfairly discriminate against American firms and has threatened retaliatory tariffs if they try. Such a move “could exacerbate the worst global economic downturn since the Great Depression,” Bloomberg says. In July 2019, France became the first country to impose a digital tax on U.S. firms after wider efforts by the European Union to develop a harmonized approach failed. The French 3% levy was applied to companies with at least 750 million euros in global revenue and digital sales of 25 million euros in France. Of about 30 businesses affected, most are American, but the list also includes Chinese, German, British and even French firms. The U.S. and France “came close to triggering a transatlantic trade war” in January as the EU said it could retaliate if the U.S. went ahead with planned tariffs on roughly $2.4 billion in signature French products, including wine, cheese, handbags and makeup. The two countries agreed on a truce whereby the U.S. would back off from tariffs and France would delay collection of its digital tax to the end of 2020 to allow for renewed efforts to reach a multilateral solution. Since then, the U.S. has launched investigations into the digital taxes proposed or enacted by 10 nations and the EU, citing Section 301 of the U.S. Trade Act of 1974, which allows it to retaliate for trade practices it deems unfair – the same tool used to justify U.S. tariffs on Chinese goods due to alleged theft of intellectual property. U.S. Trade Representative Robert Lighthizer says countries that have either adopted or are considering digital taxes include Austria, Brazil, the Czech Republic, France, India, Indonesia, Italy, Spain, Turkey and the UK. Now, governments are increasingly focusing on digital taxes as a way to raise funds to help pandemic-stricken economies. Stay-at-home policies have played to the strengths of companies such as Amazon.com Inc. and Netflix Inc., along with other platforms that compose the nearly $26 trillion global e-commerce marketplace. France has said it would drop its tax if the U.S. and other countries agree to a global effort for a uniform approach under the stewardship of the Paris-based Organization for Economic Cooperation and Development (OECD). However, this month U.S. Treasury Secretary Steven Mnuchin told the EU that the U.S. will no longer participate in the OECD’s digital tax talks after they failed to reach agreement on the best way to tax revenues of U.S. technology companies. The U.S. move is opposed by its trading partners. For example, French Finance Minister Bruno Le Maire called the U.S. withdrawal from the international talks “a provocation” and indicated his country will impose a version of the levy this year. “Whatever happens, we will apply a tax on digital giants in 2020 because it is a question of justice,” Le Maire said. Lighthizer told lawmakers June 17 that the U.S. would respond to any “unilateral” digital services taxes with retaliatory tariffs” but left room for the possibility of a deal. He called for an “international regime” that not only focuses firm size one based on a general agreement about how we’re going to tax people internationally, he said. “So I think there is clearly room for a negotiated settlement.” Bloomberg notes that transatlantic tax wars aren’t new and that Apple Inc. was slapped with a 13 billion-euro bill for back taxes by the European Commission three years ago. The U.S. Treasury Department tried and failed to sway the EU’s investigation which alleged that the company got an illegal subsidy. The Commission has also probed Google’s Irish tax arrangements and ordered Amazon to pay 250 million euros in back taxes to Luxembourg. Other U.S. companies, including non-technology firms such as Starbucks Corp. and Nike Inc., have also been targeted. The EU insists that the common thread isn’t that they’re American but that they’ve used complex legal structures and intellectual-property licensing to limit tax payments. Bloomberg also notes that taxes are only part of a bigger EU backlash against big tech. Internet firms have been put on notice over issues ranging from privacy to market dominance – and they’re fighting back with lobbying and court cases. In 2019, Google agreed to pay 965 million euros to settle two French tax probes. Apple and Amazon are contesting their respective European tax decisions in EU courts – and a legal victory could halt that part of the bloc’s crusade. Lawmakers are on the lookout for companies that might consider changing their tax structures or moving income outside of the EU to stay ahead of the curve. So, we will see. Business interests are worried that new international fights will weaken efforts to offset impacts of the coronavirus — and that is certainly a valid concern. The “international digital tax” effort is yet another threat that could trigger pushbacks of many kinds. It should be watched closely as new and more threatening policy fights are debated, Washington Insider believes.
| Rural Advocate News | Friday June 19, 2020 |
Senate Ag Panel Sets Markup On Grain Standards Reauthorization, Hearing On Carbon Capture Bill The Senate Ag Committee has set a business meeting June 24 to markup the United States Grain Standards Reauthorization Act of 2020, one of the few pieces of ag-related legislation that are expected to be acted on this year. The panel held a hearing on the issue last year and it will be interesting to see if changes suggested at that session have been incorporated into the legislation the panel will markup next week. The measure was last reauthorized in 2015. The panel will then shift to a hearing on the Growing Climate Solutions Act of 2020 (S 3894). American Farm Bureau President Zippy Duvall, National Farmers Union President Rob Larew, Land O’Lakes official Jason Weller and Indiana farmer Brent Bible – also listed as an adviser to the Environmental Defense Fund – are scheduled to testify.
| Rural Advocate News | Friday June 19, 2020 |
USTR Lighthizer Fully Expects China to Meet Phase One Commitments U.S. Trade Representative Robert Lighthizer spent hours on the Hill Wednesday, testifying on the trade agenda to panels in both the House and Senate. But his message on the China Phase One agreement was unchanged – China will live up to terms of the deal. He reiterated several times that he expects China will live up to terms of the deal. Lighthizer said that in “every contact I've had with the Chinese they have reaffirmed their commitment to living up to the agreement.” He also again related the view that China’s buys of soybeans will be backloaded this year. But he also expressed disappointment that some think the deal is “just soybean sales contract when it really has a lot of very, very serious parts to it.” As we have repeatedly emphasized, Lighthizer made sure to note the key changes that China has agreed to as part of the deal and the fact that it is an “an enforceable agreement.” China has bought around $1 billion in U.S. cotton which puts them ahead of where they were in 2017, the base year that was used as the starting point for China’s purchase commitments. Lighthizer said the China commitment on cotton is “substantially north” of that $1 billion mark, but he did not say what that level is. Recall the specific purchase commitments were part of a confidential part of the accord that neither side has made public. Current purchases stand at around $10 billion, Lighthizer noted. Lighthizer made clear that China purchases so far are still behind the levels needed to meet the commitments, particularly on energy. However, he predicted that China would “soon” be making sizable purchases of U.S. ethanol. After all of that testimony Wednesday, President Donald Trump seemed to undercut Lighthizer on Thursday with a tweet. "It was not Ambassador Lighthizer’s fault (yesterday in Committee) in that perhaps I didn’t make myself clear, but the U.S. certainly does maintain a policy option, under various conditions, of a complete decoupling from China. Thank you!"
| Rural Advocate News | Friday June 19, 2020 |
Friday Watch List Markets USDA's June 1 cattle on-feed report is the only official report on Friday's docket, but traders have plenty of other interests, including U.S. and international weather, trade news and the latest information on the battle against coronavirus. Weather Wet weather is expected through the central and Southern Plains Friday, causing delays in the ongoing winter wheat harvest. Showers will extend northeast through the western Midwest and scattered showers will continue from Ohio through the Mid-Atlantic. Other primary crop areas will be dry.
| Rural Advocate News | Thursday June 18, 2020 |
Grower Coalition Seeks to Protect use of Dicamba Stocks Farm groups urge the Ninth Circuit appeals court to reject an NGO call to invalidate the Environmental Protection Agency’s dicamba existing stocks order. The EPA recently defended its decision to allow farmers to continue to use existing stocks of three dicamba herbicides. The court vacated the registrations for XtendiMax, FeXapan and Engenia earlier this month. The groups, including the American Farm Bureau Federation and commodity organizations, have filed an amicus brief supporting EPA’s position. The groups say, “Neither a midseason cancellation nor a vacatur unplants a seed, retroactively tills a field, or clears a storehouse of products purchased for lawful use under the prior registration.” The coalition says immediately banning use of existing stocks of would financially devastate America’s soybean and cotton growers, who have invested an estimated $4.28 billion in seed and hundreds of millions on herbicides. The coalition says an estimated 64 million acres of dicamba-tolerant seed is already in the ground. Without dicamba, the groups say expected yield loss for soy and cotton could reach 50 percent. ************************************************************************************ Senate Passes Great American Outdoors Act The U.S. Senate Wednesday passed the Great American Outdoor Act, sending the bill to the House of Representatives. The bill establishes the National Parks and Public Land Legacy Restoration Fund to support deferred maintenance projects on federal lands. The bill provides $900 million annually for the Land and Water Conservation Fund and $9.5 billion over the next five years in national park and other public land maintenance. However, livestock and public lands groups argue the bill is a “disappointment to those who value conservation and active management of our natural resources.” Public Lands Council Executive Director Kaitlynn Glover says by making funding for the Land and Water Conservation Fund mandatory, “proponents of this bill sentenced existing and future lands and waters to the same fate facing current federal assets – billions of dollars in deferred maintenances.” The Public Lands Council actively represents cattle and sheep producers who hold public lands grazing permits. President Donald Trump indicated he would sign the bill, if passed by both the House and Senate. ************************************************************************************ Coalition Calls on Trump to Ensure China Meets Trade Obligations A broad coalition representing agriculture is asking President Donald Trump to preserve the Phase One trade agreement with China by holding China accountable for commodity purchases. The letter, sent this week, was signed by 192 groups representing all parts of the food value chain and rural economies. The groups seek continued implementation of the U.S. China Phase One Trade Agreement due to the significance of China’s market for U.S. food and agricultural exports. The letter says the world grain and oilseed market is experiencing the greatest oversupply of production since the 1980s, and the United States is facing increasing competition from foreign sources. The organizations say the trade agreement “will act as foundation for prosperity of the U.S. agriculture sector.” The letter concludes, “You have our full support and appreciation as you and your outstanding trade team work to ensure that China meets its commitments under Phase One now and into the future.” ************************************************************************************ USDA Extends Farmers to Families Food Box Program Contracts for Some Vendors The Department of Agriculture Wednesday announced the extension of contract to venders in the Farmers to Families Food Box Program. USDA is exercising the option to extend contracts for current distributors for the next performance period, July 1 through August 30, for up to $1.16 billion of food. The decision to extend current contractors was determined based on their performance since May 15. Some vendors were extended without any adjustment to their delivery amounts, while others’ amounts or locations were adjusted based on their demonstrated abilities to perform or at the vendor’s request. USDA says the extensions continue to require audits to ensure all requirements are met. The government chose not to extend some vendors’ contracts either in part because of concerns brought up during audits or for performance challenges. Since May 15, distributors have delivered over 17 million food boxes to approximately 3,200 non-profit organizations across the United States. ************************************************************************************ Bill Seeks USDA Ag Supply Chain Administrator Legislation introduced this week would create a new office at the Department of Agriculture to connect food banks with farmers. The American Farms, Food banks and Families Act proposes to create a Domestic Agriculture Supply Chain Administrator to act as a liaison between food banks, grocers and nonprofit food distributors to expand market access for farmers. Introduced be Republican Kelly Loeffler of Georgia, the legislation ensures “the federal government is collaborating with local farmers, food banks, and distributors.” Loeffler says the bill would help families in need, assist farmers and create jobs. Kyle Waide, CEO of the Atlanta Community Food Bank, says the legislation “will help food insecure families across the country get the fresh food they desperately need.” The duties of the administrator include identifying legal and regulatory barriers that inhibit farmers from working directly with food distribution entities and convening members of the public and private sector to make recommendations to the Secretary of Agriculture. ************************************************************************************ Senate Ag Announces Climate Bill Hearing, Grain Standards Reauthorization Markup The Senate Agriculture Committee announced a hearing next week on climate solutions and a business meeting on grain standards. Committee leaders, Senate Republican Pat Roberts, and Senate Democrat Debbie Stabenow made the announcement this week. The Committee will hold a legislative hearing on The Growing Climate Solutions Act of 2020, and hold a business meeting to consider the U.S. Grain Standards Reauthorization Act of 2020. The hearing, planned for Wednesday, June 24, will feature testimony from Indiana farmer Brent Bible, American Farm Bureau Federation President Zippy Duval, National Farmers Union President Rob Larew, and Jason Weller of Land O’Lakes. The Growing Climate Solutions Act creates a certification program at the Department of Agriculture to help solve technical entry barriers that make it difficult for farmers to participate in carbon credit markets. The Grain Standards Act authorizes the Federal Grain Inspection Service of USDA to establish official marketing standards for certain grains and oilseeds.
| Rural Advocate News | Thursday June 18, 2020 |
Washington Insider: Fed’s Expanding Role The Fed is continuing to boost its visibility in the growing coronavirus fight. Bloomberg noted that Chairman Jerome Powell told the Senate Banking, Housing, and Urban Affairs Committee on Tuesday that the U.S. economy may be entering a period of significant improvements in employment but also could leave the labor market “well short” of the robust levels seen just before the coronavirus pandemic. Powell was repeatedly asked by about economic inequality and the unemployment rates for low-income and black Americans in light of protests sweeping the nation over police brutality and racial disparities. He responded that “the disproportionate impact of job losses on low-income Americans and minorities” is significant, and that “the economic pain was hitting hardest on those who can least afford it.” “If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing,” he said. Powell also was pressed by Democrats on whether Congress should provide additional fiscal support, focusing in particular on whether budget cutbacks by state and local governments could further damage the economy if they don’t receive more aid. Powell tried to stay out of the most partisan battles but agreed that growing inequality is a risk, Bloomberg said. He also appeared to lend his support to continuing some level of extra aid to the unemployed. “I wouldn’t presume to tell you what the Fed thinks you should do, it’s really not our role,” Powell said. “We do think you’ll want to continue support for workers in some form. There are going to be an awful lot of unemployed people for some time.” Bloomberg also noted that the U.S. has spent more than half of the $3 trillion in economic rescue funds passed by Congress—but provided “little of the oversight intended to ensure the money goes to the right places.” In fact, the new oversight bodies that exist are “barely functional,” Bloomberg thinks. These include a special inspector general who was recently sworn in, a congressional panel that still lacks a chairman and staff and an official that the president “quickly removed” who was going to lead a separate accountability committee. The sheer size of the pandemic response means there’s a wide swath of issues to investigate. But mistrust in Washington is so deep that the oversight groups’ investigations are already mired in politics. Leaders of both parties have failed to agree on a chairman to lead the congressional oversight panel. And Democrats are already voicing concerns on whether Trump’s hand-picked special inspector general for the stimulus can be independent from his former boss. While the U.S. Chamber of Commerce frets that lawmakers’ oversight will be tainted by politics, Democrats such as Senator Elizabeth Warren, D-Mass., an advocate of the watchdogs’ role, say the cash is already flowing to undeserving recipients. “We’ve seen giant public companies scoop up relief meant for small businesses, an inspector general fired, promises made to muzzle independent oversight,” Warren said. One of the key figures in the oversight debate is Brian Miller, the former White House lawyer chosen by President Trump and sworn in June 5 as special inspector general for pandemic recovery. Democrats are deeply skeptical about how he’ll perform. Miller must convince Democrats and the Trump administration that he’s tough, fair, and someone they should pay attention to, said Neil Barofsky, the first special inspector general who oversaw the Troubled Asset Relief Program, or TARP, amid the 2008 financial crisis. He said Miller’s most important chance to prove his independence will be his first public report, due in August. So, we will see, as we enter an entirely new period of massive federal interventions and oversight amid an unusually contentious political campaign. Some experts continue to assure the public that strong but careful federal programs can alleviate the worst impacts of the virus and avoid a prolonged recession, or worse. In the meantime, there are desperate efforts to find and mobilize vaccines to control the infestation and death the disease carries. Most of the approaches proposed involve high stakes and are extremely controversial, and all should be watched closely as the political season progresses, Washington Insider believes.
| Rural Advocate News | Thursday June 18, 2020 |
EPA’s Wheeler Says Waiting On DOE Regarding SREs EPA's EPA Administrator Andrew Wheeler told Brownfield that retroactive requests for small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) must be treated like other requests for exemptions. Wheeler told the news service he was not sure how many had been filed. “The statute does allow people to file their applications for waivers at any time, and at any time is in the statute,” Wheeler stated. “So, we have received some. We’ve not process reviewed them yet,” he observed. “We’ve sent them over to the Department of Energy when we received them and Department of Energy is currently reviewing them.” As for requests for the 2019 compliance year, Wheeler said the agency still has those to consider. EPA data shows 27 requests are pending for the 2019 compliance year. “We also included in the RVO [Renewable Volume Obligations] for 2020 the almost, actually over 700-million gallons for small refiners. We’ve not processed the 2019 applications because of the court decision.” The court decision referenced is the 10th Circuit Court which invalidated three SREs granted for the 2016 compliance year.
| Rural Advocate News | Thursday June 18, 2020 |
EPA Files Response To Court Challenge On Dicamba EPA has defended its decision to allow continued use of dicamba on soybeans and cotton, telling the Ninth U.S. Circuit Court of Appeals that it is in compliance with the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) in allowing the use of the three dicamba products through July 31. EPA issued an order rescinding registration of Bayer's Xtendimax, BASF's Engenia and Corteva's FeXapan, and said in its court filing that action “only makes it illegal to distribute or sell that pesticide. It does not outlaw use of products already legally purchased.” In the filing on Tuesday, lawyers for the EPA argued that spraying a pesticide that is not registered is not illegal; instead, it is only illegal to buy or sell an unregistered pesticide. EPA also said it anticipated illegal applications of dicamba could be a problem if the herbicide is immediately banned. “When a registration is vacated, misuse of that product is no longer a violation of FIFRA,” EPA said. “The Cancellation Order addresses this indirect and potentially disruptive environmental harm. The Order plugs a regulatory gap by ensuring that existing stocks of these newly-unregistered pesticides are used safely and appropriately, and only for a limited period of time.” Further, the agency said the court does not have jurisdiction over the decision because it is a separate administrative order than the registration that was vacated. The parties filing the action to halt EPA’s order to allow the products to be applied through July 31 have until today to file their reply.
| Rural Advocate News | Thursday June 18, 2020 |
Thursday Watch List Markets Thursday morning is busy with weekly grain export sales, U.S. jobless claims and an update of the U.S. Drought Monitor all due out at 7:30 a.m. CDT. Natural gas inventories follow at 9:30 a.m. Traders continue to watch the latest weather forecasts, any trade news and the ongoing quest for possible coronavirus vaccines and treatments. Weather A front slowly moving across the middle of the country will produce widespread moderate rainfall and a small risk for some severe weather from the western Midwest down through the Southern Plains Thursday. This will start a period of disruption to the wheat harvest, but benefit summer crops looking for more moisture.
| Rural Advocate News | Wednesday June 17, 2020 |
USDA: Commodity Purchases Reach $2.2 Billion Through Aid Program The Department of Agriculture announced the purchases of more than $2.2 billion of food items for fiscal years 2019 and 2020. The purchases are part of the ongoing efforts to feed people in need and assist American farmers and ranchers suffering from damage due to unjustified trade retaliation by foreign nations. USDA is on target to reach its fiscal year goal of about $1.4 billion of trade mitigation purchases in the next phase of fiscal year purchasing, which ends September 30. The purchases were made through the Food Purchase and Distribution Program, one of USDA’s three programs in its Support Packages for Farmers. Most of the food purchased is provided to states for distribution to nutrition assistance programs such as The Emergency Food Assistance Program and child nutrition programs. The purchases include meat, fruits, vegetables, specialty crops and dairy products. The Food Purchase and Distribution Program was established in fiscal year 2019 to assist U.S. producers by purchasing commodities that have been unfairly targeted by trade partners. ************************************************************************************ USDA Updates CFAP Numbers The Department of Agriculture has processed more than 220,000 Coronavirus Food Assistance Program payments to farmers and ranchers. In a weekly update, USDA data shows the department has issued $2.8 billion to farmers so far, with Iowa producers receiving the most, at $144 million for row crops, and $150 million for livestock. Iowa also accounts for the highest number of non-specialty crop applications, at more than 20,000. USDA says some 112,000 non-specialty crop producers nationally have received more than $758 million, while roughly 1,500 specialty crop growers have received $53 million. Payments to livestock producers total $1.4 billion, while payments to the dairy sector total $667 million. The Coronavirus Food Assistance Program provides financial assistance to producers of agricultural commodities with financial support that gives them the ability to absorb sales losses and increased marketing costs associated with the COVID-19 pandemic. USDA will continue to accept applications for the program through August 28, 2020. Resources for farmers regarding the payments are available at www.farmers.gov/cfap. ************************************************************************************ Exports to China Not Meeting Expectations Exports to China are lagging, according to Agricultural Economic Insights. Agricultural Economist David Widmar says before the trade war, soybean exports accounted for 51 percent of all U.S. ag exports to China. He writes, “Based on the first four months of 2020, trade with China has been disappointing.” After $778 million in sales in January, soybeans have mostly stalled as total 2020 sales reached $1.2 billion through April. Those figures come as the U.S. and China signed a Phase One trade agreement that included aggressive purchases of U.S. commodities by China. Through April, purchases of total U.S. ag products approached $4.6 billion, in line with 2019’s $4.3 billion figure. Yet, pre-trade war levels over the same time period in 2017 totaled $7.1 billion. China’s purchases are seasonal, with a flurry of activity early this year, and typically large purchases in the fall. Widmar says that before the trade war, China purchased 57 percent of total annual soybeans between October and December. ************************************************************************************ Survey Reveals Increased Snacking Habits in the 'New Normal' Staying home means snacking more for Americans. Amid orders to shelter-in-place, many Americans have turned to snacking for comfort. A new survey, conducted in May in partnership with California Walnuts and Kelton Global, explores the snacking behaviors of Americans and how they've changed since shelter-in-place mandates were implemented. About one in two Americans, 48 percent, confess they are snacking more than before the pandemic began. Two in five, 40 percent, of those expect to see this behavior continue after the shelter-in-place mandates are lifted. While Americans are mostly torn when it comes to the perfect flavor profile of their snacks, the preference for sweet snacks at 57 percent, currently edges out salty at 43 percent. Comfort is the first priority, with 75 percent of respondents noting that they are not trying to eat healthier snacks than they usually do, and only 20 percent remarking that they wish there were more nutritious snacking options available. ************************************************************************************ FBN opens Access to Chemical Prices Farmers Business Network this week announced prices for all products from the online FBN Direct store will be publicly available. The pricing information is open for all farmers to see, regardless of membership in FBN, with no FBN account required. FBN says the online store has helped many farms save tens of thousands of dollars annually, with some individual farms reporting savings as high as $120,000 per year. In addition, this move comes just in time for the launch of FBN's first-ever Cyber Summer Sale, offering up to 27 percent discounts on more than half of the ag chemical products available for sale in the FBN Direct online store now, through July 31, 2020. FBN has also announced that it will offer free shipping on chemical orders over $5,000 through August 31, 2020. FBN’s Tom Staples says, “Throughout this crisis, just as before it, FBN has been taking real action to fight for farmers' livelihoods." FBN is the largest independent farmer-to-farmer network. Learn more at FBN.com. ************************************************************************************ NCGA Launches Summer Virtual Fair Contest The National Corn Growers Association is kicking-off summer with a new contest, focusing on the benefits of using corn in the feed ration. The Farm to Virtual Fair contest started Monday and runs through Monday, November 2, 2020. To enter the contest, you must follow NCGA (@corngrowers) on Instagram, tag NCGA in the post and use the hashtag #MyCornFedBarn. Participants can enter a photo or video, explaining why they use corn in their feed ration. The first-place winner will win $300, second place will receive $200, and third place will get $100. Winners will be announced by Monday, November 16, 2020. Nebraska farmer and NCGA Market Development Action Team Chair Dan Wesely says, “With so many unknowns this year, we wanted to give students participating in their local, county or state 4-H and FFA livestock shows something to look forward to.” Find more information about the contest on NCGA’s website, www.NCGA.com.
| Rural Advocate News | Wednesday June 17, 2020 |
Washington Insider: Moving Deeper Into the Political Season The Trump administration is preparing a huge new infrastructure proposal as part of its push to spur the U.S. economy back to life. A preliminary version being prepared by the Department of Transportation would reserve most of the money for traditional infrastructure work, like roads and bridges but would also set aside funds for 5G wireless infrastructure and rural broadband, the people said. In addition, the president is scheduled to discuss rural broadband access at a White House event later this week. The report notes that an “existing U.S. infrastructure funding law is up for renewal by Sept. 30, and the administration sees that as a possible vehicle to push through a broader package,” The draft plan is emerging as lawmakers from both parties and the administration debate the timing and scope of additional stimulus for “a U.S. economy plunged into recession by nationwide lock-downs needed to halt the spread of coronavirus.” This is the latest sign of momentum in Washington for some kind of infrastructure spending blitz ahead of the election, Bloomberg said. House Democrats have offered their own $500 billion proposal to renew infrastructure funding over five years. It’s unclear how long the administration’s draft would provide spending or how it would pay for the programs. The House Transportation and Infrastructure Committee is scheduled to markup that measure today. Like most things in this election year, the infrastructure effort is controversial. For example, Democratic groups are telling their members to resist the administration’s efforts. Senate Minority Leader Chuck Schumer, D-N.Y. and Sen. Sherrod Brown, D-Ohio, -- the Banking Committee’s top Democrat -- told the new watchdog in charge of overseeing the pandemic corporate bailout fund they’re concerned the proposed effort “won’t be independent from his former employer: The White House.” Brian Miller, the newly confirmed special inspector general for pandemic recovery, most recently served as a White House lawyer and participated in the president’s impeachment defense. “You must resist influence or pressure, uphold the law, and protect taxpayers’ interests — even if it places your job at risk,” the senators said in a letter delivered this week. “Ultimately, your duty is to the American people, not the president.” In the meantime, the Fed inserted itself even more deeply into efforts to protect private companies from the fallout of the coronavirus. Bloomberg notes that this effort is “finally” underway but suggests that “the central bank is nervous about managing the long-term risk.” As the Fed chair Jerome Powell prepares to defend these efforts before Congress the back-story of how the central bank became lender of last resort to Main Street shows the extreme lengths to which officials were ready to rewrite their old crisis playbook to confront COVID-19. In addition, this week, dramatic evidence that everything is focused on politics now can clearly be seen as the president resumes his signature campaign rallies. Bloomberg says the rally planned for June 20 in Tulsa, Okla., is shaping up as a “possible nightmare scenario for public health officials,” as supporters gather in an arena that holds nearly 20,000 people, with no special capacity limits, “despite concerns that crowded, indoor events are ideal for transmitting the coronavirus.” The campaign plans to give a mask and hand sanitizer to everyone who attends — and require them to agree to a waiver absolving the campaign of liability if they get sick. So, we will see. Clearly, the coronavirus is affecting almost everything this year and events like the Tulsa rally can be expected to play a role — as will the dynamics of the rally itself and its eventually consequences. The infrastructure effort also could be important, at least partly since it has long been promised and proved deeply controversial in the past. This is an effort that should be watched closely by producers as it emerges, Washington Insider believes.
| Rural Advocate News | Wednesday June 17, 2020 |
Lawmakers Urge USDA to Repeat 2019 Rules for Cover Crops on Prevent Plant Acres The prospect of an elevate level of prevented planting acres this season in some areas is prompting some farm-state lawmakers to ask USDA to take the same steps they did in 2019 relative to harvesting cover crops planted on prevent plant acres. The 2019 level of prevented planting acres was much higher than usual and took place in several states. “As you know, there were more than 19 million prevented plant acres across the United States in 2019 due to excessive rainfall and spring flooding,” Senate Majority Whip John Thune, R-S.D., Senate Agriculture Committee Ranking Member Debbie Stabenow, D-Mich., and a slew of their colleagues wrote. “Due to an administrative rule, producers were not allowed to graze or harvest cover crops on these acres prior to November 1 without a reduction in their prevented plant indemnity.” Last year, USDA “made a one-time administrative change to move up the date on which producers could graze, hay, or chop cover crops on prevented plant acres from November 1 to September 1,” a move the lawmakers said allowed “producers to retain some agricultural value of their prevented plant acres.” The lawmakers said that at the very least, USDA needs to remove the penalties again this year provided the harvest/use activities happen outside the normal nesting season.
| Rural Advocate News | Wednesday June 17, 2020 |
US Ag Sector Urges Trump to Give China More Time To Meet Phase One Commitments Scores of U.S. ag interests have written President Donald Trump, urging him to give China time to fulfill Phase One farm purchase commitments. “As you know, the U.S.-China Phase One Trade Agreement is critical to both the near - and longer-term success and growth of American agriculture — and the millions of American jobs the agricultural sector sustains,” more than 180 organizations and companies said in a 13-page letter to the White House detailing benefits and status of the agreement for U.S. farm products. “While the current pace of U.S. agricultural exports to China is below the pace needed to meet the Phase One goals, American farmers, ranchers, and rural communities remain optimistic that the purchases under this agreement will accelerate and be fulfilled by China, and that as a result, the American agriculture sector will enjoy important market opportunities,” the letter added. China has not yet asked for an extension of their purchase commitment timeline, but trade sources have indicated that could become a reality.
| Rural Advocate News | Wednesday June 17, 2020 |
Wednesday Watch List Markets A report on U.S. housing starts is due out at 7:30 a.m. CDT Wednesday. For grain markets, the more interesting report is the U.S. Energy Department's weekly inventory report as it includes ethanol data at 9:30 a.m. CDT. The latest weather forecasts remain highly watched along with any trade news that might develop. Weather Breezy winds will continue in the Plains and Western Corn Belt bringing well-above-normal temperatures to the region on Wednesday. Showers appear to be confined toward the Mid-Atlantic and the Northern and western Plains. Some of the storms in the Dakotas could be strong to severe later today.
| Rural Advocate News | Tuesday June 16, 2020 |
Dicamba Makers Seek to Intervene in Court Decision Makers of dicamba filed motions to intervene in a court case following a decision to vacate the registration for three dicamba herbicides. BASF and Corteva announced their motions to intervene late last week. The Ninth Circuit Court of Appeals vacated the registrations on June 3, 2020, for dicamba herbicides from BASF, Bayer and Corteva. Bayer intervened in the case last year. A dicamba herbicide from Syngenta was not included in the ruling. BASF's Paul Rea, says the decision, made during the middle of the growing season, “gives no regard to the significant investments farmers have made in their businesses and leaves them without viable options for the growing season." Corteva was not a party to the lawsuit and says that until June 3, the case appeared to involve only the Bayer XtendiMax registration. Corteva is seeking to intervene to “preserve our rights and to support the rights of customers to use the impacted dicamba weed control technology.” ************************************************************************************ Iowa Leaders Seek Support for Turkey Producers Iowa officials seek support for the state’s turkey producers. Senators Chuck Grassley and Joni Ernst, both Iowa Republicans, along with state leaders, made the request in a letter to the Department of Agriculture this week. The leaders request USDA provide turkey producers support through the Coronavirus Food Assistance Program. The letter says plant closures and reduced flocks remain a growing threat to turkey growers, and the food supply chain. Independent turkey growers “stand to lose disproportionately compared to other corporate-owned growers.” according to the letter. The officials say there are numerous cooperative and independent growers left out of the CFAP aid package. In the letter, the officials ask that, “economists at USDA work to devise a methodology and formula that allows this niche sector of the nation’s poultry industry to have the same opportunities provided to others.” The United States is the world’s largest turkey producer and largest exporter of turkey products. ************************************************************************************ NCBA, Others, Oppose Great American Outdoors Act Livestock groups say the Great American Outdoors Act, “is an irresponsible way to fix a very real problem.” The National Cattlemen’s Beef Association and the American Sheep Industry, along with the Public Lands Council and others voiced their opposition to the legislation in a letter to Senate leadership. The letter urges Congress to retain its role in safeguarding public lands by opposing the bill. The groups say the Great American Outdoors Act, as written, creates more than $14 billion in new, mandatory spending and gives federal agencies free rein to spend $360 million per year solely to acquire new private land without any oversight from Congress. The letter, signed by 48 livestock groups, says the bill adds the mounting disrepair of current land under federal control to the rampant acquisitions without accounting for management of future land acquisitions. The bill has bipartisan support, and President Donald Trump has indicated he would sign the legislation if passed. ************************************************************************************ AEM Releases May 2020 Ag Equipment Sales Numbers Overall unit sales of agricultural tractors and combines in May 2020 rose in the United States. The Association of Equipment Manufacturers says smaller machine sales growth is overpowering declines in the bigger segments and combines. U.S. total farm tractor sales rose 15.1 percent in May compared to 2019, while U.S. May combine sales fell 2.9 percent. Heavy-duty tractor sales declined, but total year to date sales of all farm tractors now show positive at four percent growth for 2020, while combines remain down 9.5 percent in the same period. AEM’s Curt Blades says the growth, largely from sub-100 horsepower tractors, “appears to be an unusual side-effect of COVID-19-related quarantines.” Blades says large home property owners and hobby farmers are spending more time at home, and with their equipment, and desiring an upgrade. Blades says the declines in row-crop tractors and harvesters “is clearly a reflection of uncertainty in the overall ag economy at this time.” ************************************************************************************ U.S. Soy Shoes Donated to Frontline Workers U.S. Soy is helping bring comfort to health care professionals who are working tirelessly on the frontlines during the COVID-19 pandemic. Okabashi (Ok-uh-bah-she), an American company that counts on U.S. soy for all its sandals, pledged to donate up to 10,000 pairs of soy-based sandals to health care workers for every order placed through its website or Zappos. Customers can purchase a pair of soy sandals for themselves and write a note of encouragement to a health care worker who will receive a pair with the personal message. United Soybean Board Director Belinda Burrier says, "It's neat to see the soybeans I grow not only being used in a unique way that supports demand for our product, but also to support frontline workers during this crisis." The United Soybean Board regularly collaborates with companies such as Goodyear on research to learn how to incorporate soy into new technology. Today, more than 1,000 different soy-based products are available, including everything from turf grass to machinery lubricants to asphalt. ************************************************************************************ Gas and Diesel Prices Up, Oil Down Gas prices were up again last week, representing the seventh straight week of increases. The national average price of gas increased 4.7 cents per gallon to $2.09, while the national average price of diesel rose 1.4 cents to $2.42 a gallon. Patrick De Haan of Gas Buddy expects “the upward trend to continue across most of the country ahead of July 4, with prices perhaps rising another 10-20 cents by then.” Prices are increasing on improved demand from drivers. However, he says, a possible second wave of coronavirus lockdowns could hamper demand if it was to occur. Over the last week, the price of oil has struggled under the weight of Saudi Arabia’s comments that it would not extend production cuts beyond July. De Haan says a delicate balancing act is underway by crude oil producers who don’t want oil prices to surge too quickly to avoid eager U.S. producers from getting back online too quickly.
| Rural Advocate News | Tuesday June 16, 2020 |
Washington Insider: Administration Probes Meat Industry Bloomberg says this week that the Trump administration launched “what could turn out to be the biggest attack in a century against the giants of America’s meat industry.” The probe follows the recent “uproar over employee treatment” during the pandemic, the report says. The Department of Justice (DOJ) threat is casting spotlight on the industry after coronavirus outbreaks saw thousands of workers get sick, forcing plants to shutter. President Donald Trump in early May called for a probe into beef prices, Bloomberg said. Farmers have long complained about the dominance of just a handful of companies in beef and poultry markets. The current heightened scrutiny comes less than five months ahead of November’s presidential election and could attract attention from U.S. farmers, a key Trump constituency. “The market’s been broken for a long time, and the pandemic has just made it worse. Meatpackers are making record profits, and the ranchers are going out of business,” said Ben Gotschall, the interim executive director for the Organization for Competitive Markets, an advocacy group that opposes consolidation in agriculture. At issue is whether meat behemoths are “thwarting competition” in violation of antitrust laws. DOJ prosecutors this month said executives at two chicken producers, including the second biggest in the U.S. – Pilgrim’s Pride Corp. – illegally conspired to fix prices. The department is also setting its sights on beef companies and has issued subpoenas to the four biggest producers – Tyson Foods Inc., JBS SA, Cargill Inc. and National Beef Inc., who together control more than two-thirds of all U.S. beef processing. The power of the meatpackers today echoes that of the early 20th century when the industry was dominated by the “beef trust.” At that time, FTC found that the five biggest companies controlled about 82% of cattle slaughter, monopolized the market and crushed competition. The findings were the basis for an antitrust settlement against the industry in 1920. If the Justice Department finds new evidence of meatpacker violations, it can sue them to stop or negotiate a settlement—as was done a century ago, when the companies agreed to restrictions such as not owning stockyards or retail meat businesses. Criminal investigations like the current one involving chicken processors carry higher stakes – executives can go to jail and companies can be criminally fined. Last month, 19 senators, many from agricultural states, asked DOJ to look into whether the companies are suppressing prices. Meat plant shutdowns in April and May sparked shortages at grocery stores and even Wendy’s Co. dropped burgers from some menus. Though it was just about a dozen plant closures, large producers left few remedies when even a handful of facilities are down. In total U.S. commercial cattle slaughter, the top four companies in 2018 had market share of 71%, up from 57% in 1987, according to the Cattle Buyers Weekly. “Given the high concentration of meat and poultry processors, closures of a relatively small number of large facilities could disrupt our food supply and detrimentally impact our hardworking farmers and ranchers,” the White House said. David Turetsky, who was a deputy in the antitrust division at the Department of Justice during the Clinton administration said an earlier probe “didn’t find enough to bring a case. In industries that as highly concentrated at this one, it’s not surprising at all to see concerns,” said Turetsky, now at the University at Albany. It’s not clear what conduct the Justice Department is focused on now. A class-action lawsuit brought by producers last year accused the companies of colluding to reduce the volume of cattle purchased for slaughter in order to drive down prices. Ranchers’ woes grew more acute in the pandemic as slaughter plants shuttered. They grappled with low prices for cattle, while meat prices paid by consumers at the supermarket spiked. Wholesale prices have quickly come back down from the peak, but are still about 10% higher since the start of the year even as shutdowns for restaurants meant a loss of demand. Cattle producers note that most cattle are now sold to meatpackers through longer-term contracts, rather than on the spot market but that this structure “reduces transparency and gives the packing companies a mechanism to pressure prices” according to legislation introduced last month by a bipartisan group of senators from rural states that would require meatpackers to buy a minimum of half their weekly volume on the spot market. Glynn Tonsor, a professor in the department of agricultural economics at Kansas State University pointed out that plant efficiencies also benefit ranchers and can allow meatpackers to pay more for cattle than they would otherwise. However, antitrust enforcement today is undergoing a “rethink” Bloomberg said. Economists and lawyers are questioning whether there’s been too much focus on how mergers affect prices paid by consumers and not enough on prices paid to sellers. “Agriculture in general is an area where there is lot of market power to the detriment of consumers on one side and small producers and farmers on the other,” the report said. So, we will see. Market structure and performance of major ag industries is typically highly controversial, and likely will continue to be. The DOJ and USDA probes are important and should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday June 16, 2020 |
Trade to be High on the Agenda This Week Those who are interested in trade will have a busy day on Wednesday. U.S. Trade Representative Robert Lighthizer testifying twice that day regarding the Trump administration’s trade agenda. He will testify before the House Ways & Means Committee in the morning and then the Senate Finance Committee in the afternoon. Both sessions will be “virtual” hearings as has become the norm with many actions in Washington in the wake of the COVID-19 situation. His sessions before House and Senate trade panels will be watched for his assessments on the U.S.-Mexico-Canada Agreement (USMCA) with implementation coming July 1; the U.S.-China Phase One agreement will be an attention point; and the prospects for a U.S.-UK trade agreement will likely be broached given a UK official’s comments last week that the hope was for a deal by the U.S. November 3 elections.
| Rural Advocate News | Tuesday June 16, 2020 |
More Dicamba Action This Week The U.S. Court of Appeals for the Ninth Circuit has ordered EPA to respond by Tuesday (June 16) to an emergency motion filed by environmentalists and farmworker advocates who contend the agency has ignored the court’s directive to vacate registrations that permit the spraying of three dicamba products. The petitioners then have to file their reply by June 18. The emergency motion focused on EPA’s decision to cancel the registration for three dicamba products, but allow the use of existing supplies of the products through July 31. The agency action was based on precedence in other cases where the registration of a chemical was cancelled. Their emergency motion urged the court to compel the agency to bar any spraying of the dicamba products and hold EPA Administrator Andrew Wheeler in contempt. USDA Secretary Sonny Perdue said in a statement that he supported the EPA decision. “At a time when the security of the food supply chain is paramount, the Center for Biological Diversity and its allies seek to cripple American farmers and further limit their ability to feed, fuel, and clothe this nation and the world,” Perdue said. “The Ninth Circuit should not allow plaintiffs’ hostility against the American farmer to cloud the fact that the EPA’s actions follow both legal precedent and common sense.” It is not yet clear what the court decision will be, but the accelerated timeline hopefully means the matter will be resolved soon.
| Rural Advocate News | Tuesday June 16, 2020 |
Tuesday Watch List Markets A report on U.S. retail sales for May is set for 7:30 a.m. CDT Tuesday, followed by industrial production at 8:15 a.m. Traders also remain interested in the latest weather forecasts and any trade news that develops. Weather Well-above-normal temperatures will surge northward due to breezy southerly winds through the Plains and Western Corn Belt on Tuesday. A strong system developing in the Northern Plains will bring about scattered showers in the region, which could be strong to severe in the Dakotas in the evening. Conditions remain favorable for the continued wheat harvest.
| Rural Advocate News | Monday June 15, 2020 |
U.K. Wants a Quick Deal with the U.S. Anthony Phillipson, United Kingdom Trade Commissioner for North America, says the U.K. and the U.S. have a “shared ambition” to sign a free trade agreement before the November 3rd U.S. election. Politico says Phillipson spoke last week at a Washington International Trade Association event, acknowledging that many trade experts are skeptical the two sides can complete negotiations quickly. However, he says the U.S. and U.K. had extensive discussions over the outline of a future trade deal well before the first round of formal talks began last month. Additionally, work is continuing to be done in between the formal negotiations. “I think we’re running at this very, very fast in full partnership with our U.S. colleagues,” Phillipson says as another round of formal talks is underway this week. The British trade official borrowed a line from Senator Chuck Grassley of Iowa, who noted that “agriculture is the locomotive” that pulls along the rest of any U.S. trade agreement. American industries have lobbied the Trump Administration to pressure the U.K. to accept American chlorinated chicken, beef hormone standards, and other regulations. Completing the trade talks which began in May over the course of six months would be very fast. ********************************************************************************************** Emergency Motion Filed to Halt All Dicamba Use An emergency motion was filed late last week, asking a federal court to bring all dicamba use in the U.S. to an immediate halt. DTN says the motion also asks that the Environmental Protection Agency be held in contempt of court for its decision to permit farmers to use their existing stocks of three dicamba herbicides. If the judge agrees, that could once again leave farmers without the dicamba herbicide options they need to use on millions of acres of dicamba-tolerant soybeans and cotton through the summer growing season. The emergency motion was filed by the same plaintiffs who brought the lawsuit against the EPA in the Ninth Circuit Court of Appeals. The suit demanding the court bring an end to the registrations of three dicamba herbicides succeeded on June 3rd when the judge ruled in the plaintiffs’ favor. Five days after that, the EPA issued a cancellation order, ending the registrations but allowing farmers and applicators to continue to use existing stocks until July 31st. The plaintiffs, including the Center for Food Safety and the Center for Biological Diversity, estimated that up to 16 million pounds of dicamba could be applied in the coming weeks, which they say is a direct violation of the court’s ruling. ********************************************************************************************** China May Finally Be Turning to U.S. Soybeans Chinese importers signed off on contracts to buy more than 700,000 metric tons of U.S. soybeans. An Agweek report says most of the sales were for new-crop beans, and it may signal that China is expecting supplies will get tighter in Brazil as they lock in deliveries for after September. A USDA announcement last week says only 63,000 tons of the total amount is set for delivery in the 2019-2020 marketing year, with the remaining amount is set for delivery in the 2020-2021 marketing year, which starts on September 1st. Industry insiders note that the size of the new crop contracts likely means the purchases were made through state-owned buyers. Private purchasers are said to be jumpy over the fate of the Phase One trade pact between China and the U.S. as tensions grow between the two nations. Private buyers are also more likely to still look at South American soybeans to fill their needs because there is no risk of tariffs. The total purchase of 720,000 metric tons of U.S beans is enough to fill 11 ships, and it may signal that China will be counting on the U.S. to fill out its soybean needs over the final half of the calendar year. ********************************************************************************************** Ethanol Industry Getting Impatient with the Trump Administration Just a year ago, President Donald Trump paid a visit to an ethanol plant in Council Bluffs, Iowa. The Hagstrom Report says the ethanol industry is now appealing to him directly to look into the Environmental Protection Agency’s implementation of the Renewable Fuels Standard. Ethanol industry leaders held a telephone news conference last week and sent a letter directly to the president. The industry’s impatience with Trump could hurt him in Iowa and other key ethanol-producing states, which could make this year’s election even more interesting. In the past several months, industry groups have gone after the EPA when it came to mismanaging the RFS. On the call last week, Renewable Fuels Association President and CEO Geoff Cooper said, “Ultimately, the buck stops in the Oval Office. We are now appealing to the president to intervene here.” Cooper says the first EPA administrator under Trump, Scott Pruitt, “derailed things.” However, his successor, Andrew Wheeler, hasn’t gotten things going again in the right direction. In the letter, Cooper wrote that “Even after the federal court overturned some refinery waivers in January, your EPA continues to receive dozens of exemption requests from oil companies. EPA is now considering retroactive waivers for years that pre-date your administration. This has to stop.” ********************************************************************************************** Meatpacking Rebounds but Meat Prices Will Likely Remain High Meat production continues to rebound in the United States from its low point when dozens of plants were closed because of COVID-19. However, industry experts say consumer prices are likely going to stay higher than they’re used to, plus it will take months to work through a backlog of millions of pigs and cattle that had nowhere to go for processing. As of last week, beef, pork, and poultry plants were operating at over 95 percent of 2019 production levels. An Associated Press report says that’s up from 60 percent in April during the height of plant closures and slowdowns. The steps companies took to protect workers from COVID-19 infections were necessary to keep plants running as smoothly as possible. However, those steps will likely slow production somewhat and keep prices higher at the grocery stores. Even if plants become more efficient and get back to full capacity, there is typically a lag of several weeks between the time wholesale prices drop and when consumers start to notice the change. “Don’t expect prices to fall in half just because wholesale prices have declined dramatically,” says Lee Schulz, an Iowa State University livestock economist. Other steps plants are taking to work through the backlog include more processing on Saturdays, as well as saving time by processing meats in larger cuts. ********************************************************************************************** CommonGround Volunteers Continue to Bridge the Gap Between Rural/Urban Residents The National Corn Growers Association CommonGround volunteers spend a lot of time building bridges between women on the farm and those who live in predominantly urban areas, far removed from farm life. Like everyone else in the country, COVID-19 has changed the way CommonGround volunteers do their work. They may not be hosting large events this summer as the volunteers have in the past, but they’ve taken time through the past few months to find opportunities to connect with women in urban and suburban areas for conversations on social media. From building relationships based in common experiences like learning to home school on the fly to sharing the story of farming through COVID-19, the volunteers continue to share the story of American agriculture and bridge the distance from their fields to families’ tables, but they’re doing it digitally this summer. CommonGround is an initiative based on starting a conversation between the women who grow food and those who buy it. The goal of all CommonGround volunteers is to talk about their personal experiences on the farm, as well as offer relevant science and research to help consumers sort through the myths and misinformation surrounding their food and how it’s raised.
| Rural Advocate News | Monday June 15, 2020 |
Washington Insider: Importance of Disease Tracking and Testing Bloomberg is reporting this week that although much of the virus-related public debate has focused on economic subsidies, state and local health departments are pushing Congress for billions of dollars to expand their disease-tracking programs. In addition, they are warning of the dangers of “reopening without systems in place to monitor the spread of the coronavirus.” Lawmakers have already provided $25 billion to ramp up COVID-19 testing, which includes $11 billion sent to state governments that could be used for tracing. Those efforts could allow contacting people who may have come into contact with the virus and trying to isolate those who could spread it. Such programs are key to loosening social distancing rules, health experts say. However, more money, projected at almost $8 billion, is needed to hire tracers and prepare for a possible resurgence of the virus in coming months, public health groups say. Concern is also rising that funds aren’t being evenly distributed. Few new hires have been available to agencies that are supposed to do this work. The risk, Bloomberg says, is that states are “hundreds of workers short of the staff they need to reopen.” “The single best tool we have for bringing this virus under control and for saving hundreds of thousands of lives and for getting our economy up and running is an effective testing, tracing, and supportive isolation program,” Ashish Jha, a professor of global health at the Harvard T.H. Chan School of Public Health, told lawmakers recently. “There is nothing else.” Lawmakers have yet to reach agreement over the specific amount of money is needed to bolster contact tracing and who should get the funds. House Democrats included $75 billion for testing and contact tracing in legislation they passed largely along party lines in May, but the Senate leadership rejected that bill. They are expected to wait until July to pass another economic stimulus package. The money should largely go to state and local health departments, the National Association of County and City Health Officials along with the Association of State and Territorial Health Officials, Association of Public Health Laboratories and other groups say. Together they have asked Congress for $7.6 billion in new money. The American Federation of State, County and Municipal Employees is asking lawmakers for $1 trillion in state aid that includes hiring a permanent disease-tracking workforce across the U.S.. Public health departments are frequently “on the chopping block” as the recession caused by the spread of COVID-19 tightens state budget, a leader of the group says. Lawmakers have been debating options for funding and staffing contact tracing across the country, including one bill that would send $10 billion to states and Native American tribes to hire more than 100,000 tracers and support personnel and another bill that would provide $100 billion for a mobile testing and tracing system. Some of the proposals lawmakers have floated would temporarily hire the newly unemployed to do much of the contact tracing while others would establish grants. The National Association of County and City Health Officials (NACCHO) recommended states hire about 30 people to do contact tracing per 100,000 people. Much of the front-line work can be done by people who aren’t specialists but ultimately disease tracking requires supervision by epidemiologists and other trained professionals, said Adriane Casalotti, chief of government and public affairs of the NACCHO. Right now, most health departments are doing contact tracing with their existing staff but that work is stretching public health thin and distracting from tracking other diseases. State governments use different tactics on creating contact tracing programs, data the National Academy for State Health Policy collected show. Indiana has outsourced the job to a private contractor; Massachusetts hired more than 1,000 workers through a local nonprofit; and Texas is expected to spend about $300 million on contact tracing over the next two years. “Hiring is a challenge,” she said. “Every minute we’re kind of wasting with not really focusing on action is lost. It’s not like you can flip a switch get 1,000 contact tracers in your community.” So, we will see. The job of mapping the presence of the virus and tracing it to its origins is enormous in scope and clearly will present different challenges than nearly any past government activity. And, it will be expensive, experts agree. How this is organized and directed will be extremely important and should be watched closely by producers as the effort proceeds, Washington Insider believes.
| Rural Advocate News | Monday June 15, 2020 |
UK Trade Official Hopes For Trade Deal Before US November Elections Reaching a trade deal between the U.S. and UK prior to the November 3 U.S. elections remains a goal, according to reports of remarks made by Her Majesty’s Trade Commissioner for North America Antony Phillipson at a Washington International Trade Association (WITA) even Thursday (June 11). The two sides have a “shared ambition” for that goal. “If possible, we want to get an agreement signed before the election,” he said. Negotiators were working well before the first round of talks, Phillipson pointed out, saying the two sides were looking to get the deal done in a “very different” and “much quicker” way than previously. Digital trade and taxation are key areas that Phillipson identified for the pact and the UK was disappointed there has not been more progress on that issue via the Organization for Economic Cooperation and Development (OECD). Digital trade, intellectual property and data flows will be “key drivers in our view of the future of the global economy,” he observed. While the two sides already have lofty standards in those areas, Phillipson said he thinks the trade deal provides a forum to “take that to even greater heights and then roll that discussion into a plurilateral and global forum.” The two sides are “absolutely on the same page” relative to the Irish border issue, he added.
| Rural Advocate News | Monday June 15, 2020 |
Peterson Laments Ag Panel had Little Say in CFAP House Agriculture Chairman Collin Peterson, D-Minn., said his panel has had little say in the Coronavirus Food Assistance Program (CFAP) developed by USDA. “I am concerned that the Ag Committee has basically been neutered in this whole process and we don’t have really anything to say about anything. We’re getting all the flak from people,” Peterson said earlier this week in a phone interview with CQ Roll Call. He said constituents have been calling to complain about flaws they see in the structure of the payments and do not believe his explanation that he has little input beyond voting for the March 27 legislation. However, he pledged the panel will do a “top-to-bottom” review of how the COVID-19 situation has impacted agriculture. But he said the House scheduled does not allow enough time for an in-person hearing and it would be difficult to find a hearing room large enough for the 47-member panel given social distancing provisions.
| Rural Advocate News | Monday June 15, 2020 |
Monday Watch List Markets With row crops growing, the latest weather forecasts continue to receive daily attention. USDA's weekly report of grain export inspections is at 10 a.m. CDT, followed by a monthly soybean crush report from the National Oilseed Processors Association later in the morning. At 3 p.m., USDA's Crop Progress report will give the latest crop ratings as well as winter wheat harvest progress. Weather Isolated to scattered showers will dot the Northern Plains, western Midwest, and Southeast on Monday. Above-normal temperatures and breezy conditions are expected again in the Plains and western Midwest, drying topsoil moisture. This means conditions are good for the wheat harvest, though.
| Rural Advocate News | Friday June 12, 2020 |
China says New ASF Vaccine is Safe, So Far A Chinese vaccine designed to combat the African Swine Fever virus is so far proving safe in clinical trials that are underway. The official Chinese news agency says that pushes hog farming a step closer to be able to prevent one of the world’s most devastating livestock diseases. A Reuters article says the development progress is being watched closely by pig farmers across the globe because there is currently no cure or vaccine to use against ASF. The disease kills virtually every animal it infects and has devastated China’s hog herds since it first showed up in 2018. The virus is still killing pigs in China and broke out in other spots across Asia since then. Chinese researchers at the Harvin Veterinary Research Institute, which is part of the Chinese Academy of Agricultural Sciences, say they’ve developed a safe attenuated vaccine that has proven effective against the African Swine Fever virus during testing in laboratories. Clinical trials of the vaccine were given the go-ahead in March and have been underway on 3,000 pigs in three different locations in China, including the northeast, far west, and the central parts of the country. ********************************************************************************************** Farm Bureau says More Farmer Assistance is Necessary The American Farm Bureau Federation is asking lawmakers to provide more critical resources to farmers hurt by COVID-19’s impact on the food system. They’re also looking for more help for rural communities struggling with the pandemic’s impacts. Many of the country’s struggling farmers were left out of the initial round of assistance, while some who did receive help are still being hurt by the impact of COVID-19. As Congress is set to consider additional aid this summer, Farm Bureau President Zippy Duvall sent a letter to Congressional leadership listing the areas of need. “The economic losses across the U.S. ag sector are broad-based, directly impacting farmers and ranchers as well as their supply chain partners, from the input providers to end-users,” Duvall says in the letter. “Producers have witnessed their markets shrink overnight or even disappear, while supply chains have been stretched to the limit in response to COVID-19.” Some of the Farm Bureau’s priorities include extending relief funding for losses incurred after April 15, 2020. They’re asking Congress to replenish funding for the Commodity Credit Corporation to the tune of $68 billion. The Farm Bureau wants support for biofuel facilities, assistance for independent and contract poultry producers, as well as other requests. ********************************************************************************************** The U.S., U.K. Trade Talks Begin Next Week The second round of trade talks between the United States and the United Kingdom begin on Monday. U.S. Trade Representative Robert Lighthizer is emphasizing his goal of reaching a comprehensive trade deal with the United Kingdom. Politico says that may have been to quell some nervousness in Congress that the U.S. Trade Rep might settle for a mini-deal, similar to the one struck last year with Japan. “We want to have a full-blown agreement with the U.K.,” Lighthizer said last week during a members-only event at the Economic Club of New York. “Right now, they have a very unbalanced trade relationship with the European Union, as we do, and this is an opportunity for each of us to sell more products to each other and possibly increase trade.” While he was emphasizing his desire for a full trade agreement, he put the brakes on the possibility of a quick agreement. “These things will take time,” he says, “both because they’re complicated but also because each of us has to wrap ourselves around the fact that there is going to be a compromise in reaching a major trade deal.” ********************************************************************************************** Tyson Foods Cooperating in U.S. Probe of Chicken Price Fixing Tyson Foods, the top chicken producer in the U.S, is cooperating in a Justice Department price-fixing investigation. Tyson is doing so under a leniency program that will allow the company to avoid criminal prosecution in exchange for aiding in the continuing probe of other poultry producers. The Wall Street Journal says after receiving a grand-jury subpoena in April of last year, the company approached the Justice Department and disclosed its own actions while seeking leniency. Last week, the government indicted the CEO of Pilgrim’s Pride and three other poultry executives because of allegations of bid-rigging of broiler chickens sold to grocery chains and restaurants. “The behavior set out in the indictment does not reflect the values of Tyson Foods,” says CEO Noel White. “I am proud to lead a company that took appropriate and immediate actions in reporting the wrongdoing we discovered to the Department of Justice.” It was April of 2019 when the Department of Justice subpoenaed major chicken firms including Tyson, Pilgrim’s, Sanderson Farms, and Perdue Farms. The investigation followed a private antitrust suit brought in 2016 by chicken buyers seeking damages from major producers who allegedly conspired to raise prices. ********************************************************************************************** USDA Allows School to Serve Meals Free This Summer Ag Secretary Sonny Perdue says schools that have been serving meals to kids during COVID-19 can continue serving free meals to all children, regardless of where they live, for the rest of the summer. “As our nation reopens and people return to work, it remains critical that our children continue to receive safe, healthy, and nutritious food,” Perdue says. “We are extending one of the significant flexibilities provided in March during the coronavirus national emergency to schools, summer sites, and other folks who operate our programs so they can best adapt to the situation on the ground and serve our children well.” The Hagstrom Report says the flexibility will make sure kids continue to get fed throughout the summer. The nationwide waiver that was extended is for area eligibility, which allows all children in all areas to receive free meals through the USDA’s summer meals programs. Typically, USDA-funded summer meal sites are limited to children in low-income areas. The School Nutrition Association says this is great news, noting that many districts were facing the prospect of significantly reducing their service and reach over the summer because many of their feeding sites were in non-area-eligible communities. ********************************************************************************************** June WASDE/Crop Production Reports Released The June World Ag Supply and Demand Estimate report says the 2020-2021 U.S. corn outlook hasn’t changed much from last month. Beginning stocks are higher, as a reduction in corn production for 2019-2020 is largely offset by a reduction in projected corn use for ethanol. Planted acres stayed at 97 million, projected corn yield is at 178.5 bushels per acre, and production is forecast at 15.9 billion bushels. Ending stocks are projected to be five million bushels higher at 3.3 billion bushels, with the season-average farm price at $3.20 per bushel. USDA says soybean production was left at 4.1 billion bushels, with a yield at 49.8 bushels per acre and planted acres at 83.5 million. New crop ending stocks were predicted at 395 million bushels, a lower-than-expected drop. The farm-gate new-crop soybean price was set at $8.20 per bushel. 2020-2021 wheat supplies are up on a larger crop and slight increase in beginning stocks. Total wheat production for 2020-21 is 1.877 million bushels, with total supplies up 16 million bushels to three billion. Ending stocks were raised 16 million bushels to 925 million, which is a six-year-low.
| Rural Advocate News | Friday June 12, 2020 |
Washington Insider: Economic Focus Returns to Job Losses After the U.S. labor market posted a surprise improvement for May, “the weekly jobless-claims data will again remind people that economic pain remains widespread, even if it’s gradually abating," Bloomberg reports this week. About 1.55 million Americans are expected to have filed for unemployment benefits last week, according to the median estimate of economists. While that would mark the 10th straight decline from the record 6.87 million in late March, it’s still more than seven times the pre-pandemic average, Bloomberg said. The total number claiming benefits through the regular state programs – which is reported with a one-week lag – are projected to have declined to 20 million in the week ended May 30. That’s still more than 11 times the level prior to the pandemic. While the weekly report is beset by quirks and data-gathering issues, it sheds light on the still-elevated ranks of the unemployed. “That provides a counterpoint to the market exuberance following the government’s May jobs report, which also had its own data-collection errors that skewed the figures to look more positive,” Bloomberg noted. The Federal Reserve signaled Wednesday it expects to hold interest rates near zero for at least 2 1/2 years to help employment fully recover. Fed Chair Jerome Powell said that “despite the improvement seen in the May report, unemployment remains historically high,” with the pace of recovery highly uncertain and dependent on containing the virus. In addition to the depressed state of employment, there are several risks that could hold back a rebound or cause a fresh decline. They include a second wave of the coronavirus causing another round of shutdowns and the chance that businesses will decide to lay off workers who were rehired or retained to comply with loans under the government’s Paycheck Protection Program. “We have to have a little bit of caution” after the May report, said Beata Caranci, chief economist at TD Bank. “Those businesses that reopened – even at reduced capacity – are naturally going to have demand for workers. The question is: do you get back to where you were before? And I think that’s pretty far-fetched.” “There’s a significant amount of people still displaced,” she added. Despite the May jobs gain, most economists still expect a record decline in gross domestic product in the second quarter, with Bloomberg’s survey showing an annualized contraction of 34.4%. The broader issue is how weak economic activity may remain as the unprecedented downturn shuttered businesses and reduced demand permanently in some areas, Bloomberg thinks. By the end of the year, 8 million to 12 million Americans are expected to remain laid-off, particularly in the hospitality and restaurant industries, according to Daniel Alpert, a founding managing partner at Westwood Capital and co-creator of the Job Quality Index, which measures the ratio of high-quality jobs – those with higher wages and longer hours – to low-quality jobs. Alpert bases his estimate on a step-down in business creation and increase in business shutdowns, or “deaths.” He said a large portion of the gain in May jobs consisted of workers rehired by businesses using the PPP. That coincided with a sharp drop in continuing jobless claims for the week ended May 16, also the reference period for the May jobs report that captured a jump in employment. “All it was from a macro standpoint was a transfer of one government benefit for another,” Alpert told Bloomberg. “It’s absolutely not a picture of business and labor markets” coming back and “more importantly it’s not a picture of aggregate demand” returning, he said. If the PPP program isn’t expanded, employment could weaken again if companies resume layoffs. The deadline for PPP applications is June 30, so companies facing issues after that can’t apply. Businesses who have already applied have until the end of the year to convert their loan to a grant if they rehire employees. The monthly labor report and weekly claims figures can appear to tell two different stories. Both are important to understanding the reality on the ground, according to Erica Groshen, former commissioner at the Bureau of Labor Statistics, which publishes the monthly jobs report. “In the beginning, we saw just entirely job destruction – at least temporarily – and now we’re in a period of time where we have high volumes of both: job creation and job destruction,” she said. So, a number of caution flags have been deployed warning investors of future economic weakness. Clearly, these are serious concerns that producers should watch closely as they intensify in this season of political, economic and health uncertainties proceeds, Washington Insider believes.
| Rural Advocate News | Friday June 12, 2020 |
USDA Tweaking CFAP USDA today is publishing a rule in the Federal Register that will make several small corrections to the final rule published May 21 for the Coronavirus Food Assistance Program (CFAP). The changes include clarifying the definition of “Slaughter Cattle – fed cattle” to be animals with a weight of 1,200 pounds or more that are intended for slaughter, that payment calculations for livestock specify that they are based on unpriced livestock sales and specifies they apply to livestock inventory owned between April 16, and May 14, 2020. The changes also “removes the definition of ‘unpriced inventory’ and adds a similar definition of ‘unpriced’ to be consistent with the use of the term throughout the regulation; the new definition also specifies that ‘unpriced’ is based on whether a forward contract, agreement, or similar binding document was in place as of January 15, 2020.” The changes would also make dairy operations that dissolved on or after March 31 to be eligible for payments, with USDA noting the dairy change would not increase CFAP costs. There were also changes made for specialty crops.
| Rural Advocate News | Friday June 12, 2020 |
Farm Bureau Outlines What It Sees Needed For Next Ag Aid Efforts The American Farm Bureau Federation (AFBF) is calling on congressional leaders to put together a major aid package for U.S. agriculture, going beyond additional payments to farmers. The group said in a nearly five-page letter to leaders that efforts need to include replenishing Commodity Credit Corporation (CCC) funding to a new cap of $68 billion; waiving any farmer payment caps; including provisions in the $3 trillion-plus, House-passed aid package, including direct payments for losses after April 15; providing support for biofuel production facilities; allowing aid to independent and contract poultry producers not eligible for the $16 billion in Coronavirus Food Assistance Program (CFAP) payments being distributed by USDA; allowing Conservation Reserve Program (CRP) acreage for emergency haying and grazing; easing rules in the Paycheck Protection Program’s (PPP) forgivable loans, including allowing farms to get funding for H-2A workers; making farmers eligible for PPP loans even if they show Schedule F losses in farm income; making Farm Credit institutions eligible for the PPP's set-aside for small financial lenders; funding to offset costs of accommodating social distancing needs in H-2A housing and to obtain personal protective equipment for employees; providing business targeted, limited liability protections that would shield farmers and ranchers; including several rural broadband provisions, including accelerated funding for the implementation of the Broadband DATA Act; and waiving overtime fees for federal meat inspectors in small and medium-sized packing plants. The package pulls together many efforts that various farm/commodity groups and lawmakers have called for in recent weeks. The next aid package is not seen being acted on by Congress until after the July 4 recess.
| Rural Advocate News | Friday June 12, 2020 |
Friday Watch List Markets The University of Michigan's index of consumer sentiment is the only report on Friday's docket, but markets have plenty else going on to stay entertained. Crop weather forecasts continue to get high attention and traders have Thursday's new supply and demand estimates from USDA to think about. Any trade news, especially concerning China, also remains of interest. Weather Warm and dry conditions will cover most crop areas Friday. Precipitation will be limited to local morning showers in the Southern Plains. This combination favors row crop progress and winter wheat harvest.
| Rural Advocate News | Thursday June 11, 2020 |
House Ag Committee Letter Highlights CFAP Concerns House Ag Chair Collin Peterson and several subcommittee chairs sent a letter to Ag Secretary Sonny Perdue highlighting concerns about the implementation of the Coronavirus Food Assistance Program. The letter talks about the continued loss in both value and demand for agricultural products related to the COVID-19 pandemic. For example, they say CFAP doesn’t include commodities under contract, even though several of the most-impacted crops are typically grown under contracts, such as potatoes and malting barley. USDA chose to cover livestock sales between January 15th and April 15th when COVID-19-related livestock market declines didn’t start until February of this year. Some of the lowest market prices also persisted well beyond April 15th, effectively and arbitrarily picking winners and losers based solely on when livestock was sold without regard to actual market conditions. The House Ag Committee Chairs also say CFAP doesn’t recognize the cost premium of organic crops by differentiating organic prices for certified organic producers. USDA also used data not fully representative of the farmgate value of some specialty crops to determine their eligibility for CFAP and CFAP payment rates. In addition to several other concerns, the Chairs point to lingering concerns over staffing levels and the existing workload at Farm Service Agency county offices, as well as what delays those factors may cause in distributing CFAP assistant. ********************************************************************************************** Ag Retailers Want EPA Clarification on Dicamba Order The Agricultural Retailers Association and the National Council of Farmer Cooperatives are asking the Environmental Protection Agency for clarification on dicamba. Earlier this week, the EPA issued a cancellation order on the use and distribution of dicamba products. The EPA says under the order that farmers or applicators with existing stocks of dicamba may apply the herbicide until July 31st. “While the agency’s cancellation order provided some guidance to end-users as well as applicators, it failed to address several scenarios where the product is still in the pipeline at various points in the supply chain,” the groups say in the letter. “These questions will need quick answers during this critical time of the growing season as weeds will not wait for a protracted legal analysis.” An example of one of the scenarios the groups are referring to is a producer has pre-paid or contracted for the product before June 3 but hasn’t had it delivered yet. The letter also notes that multiple states allowed the continued sale and distribution of these products after the court’s decision. Because the EPA order is retroactive to June 3, the industry needs guidance on whether or not farmers can use any product they bought between June 3rd and June 8th. ********************************************************************************************** U.S., EU Not Making Much Progress in Trade Talks European Union Trade Commissioner Phil Hogan says the chances of making a free trade deal with the United States in the near future aren’t good. The announcement comes after U.S. Trade Representative Robert Lighthizer blasted the EU for its trade policies and admitted the two sides are nowhere near a deal. That’s despite years that have been already spent trying to make a deal. “We must acknowledge that the U.S. is now in a pre-election phase,” Hogan said during an informal trade minister meeting in Brussels. “The focus of the political attention in Washington is now on much more immediate challenges in U.S. domestic policies.” Politico says that EU policy is that it will only sign agreements with countries that are members of the Paris Climate Accord, which is the U.S. is not. However, Lighthizer dismissed those concerns last week. “We’re not close to having any kind of agreement with them,” he says, “so, at this point at least, it’s not my problem. We’ll see what happens as we move along.” Lighthizer made those comments during an event hosted by the Economic Club of New York. While there, Lighthizer accused the EU of doing far more to undermine multilateralism than the Trump administration has ever done. ********************************************************************************************** Organic Food Sales Up Five Percent in 2019 Organic food sales rose five percent in 2019 over the previous year, coming in at $50 billion. The Organic Trade Association says the first quarter of 2020 saw organic food sales continue to rise dramatically. Food Business News says if that trend continues, the industry should see another year of record growth. “Our 2020 survey looks at organic sales in 2019 before the coronavirus outbreak, and it shows that consumers were increasingly seeking out the organic label to feed their families the healthiest food possible,” says Laura Batcha, CEO and Executive Director of the OTA. “The pandemic only increased our desire for clean, healthy food.” She says the commitment of the organic seal has always been to the combination of health and safety, and they expect that commitment to strengthen as people get through these unsettled times. Produce remains the most popular organic food category, with fruit and vegetable sales up five percent in 2019 to $18 billion. Organic dairy products reached $6.6 billion in sales during 2019, two percent higher than the previous year. Even though it’s the second-smallest category in terms of sales, condiments are one of the fastest-growing segments of organic foods, reaching $77 million in sales during 2019, up 23 percent over the prior year. ********************************************************************************************** 2020 Export Exchange Postponed to 2021 U.S. Grains Council President Ryan LeGrand, Growth Energy CEO Emily Skor, and Renewable Fuels President Geoff Cooper made an announcement this week postponing the 2020 Export Exchange to next year. The new dates will be October 6-8 of 2021 in Kansas City. “As a result of the coronavirus and our concern for the safety of our attendees who travel from around the globe to come to this event, we’ve decided to postpone Export Exchange until the same time next year,” the groups say in the joint announcement. “Doing so will ensure we will have an event that’s on par with the caliber of the meetings our guests have come to expect, and it will allow us to put on a high-quality event without the specter of COVID-19 hanging over the people there.” Export Exchange is a biennial event co-sponsored by the U.S. Grains Council, the RFA, and Growth Energy, and brings together about 200 international buyers and end-users of coarse grains and co-products, including dried distiller’s grains with solubles (DDGS), with around 300 U.S. suppliers and agribusiness representatives. More information will be distributed in the months ahead to members of the grains industries and will be made available online at www.exportexchange.org. ********************************************************************************************** USDA Nominations for FSA County Committees Open June 15 The USDA’s Farm Service Agency will start accepting nominations for county committee members on Monday, June 15th. Elections will occur in certain Local Administrative Areas for these members who make important decisions about how federal farm programs are administered locally. All nomination forms for the 2020 election must be postmarked or received in the local FSA office by August 1st of 2020. “I encourage farmers, ranchers, as well as forest stewards to nominate candidates to lead, serve, and represent their community on their county committees,” says FSA Administrator Richard Fordyce. “There’s an increasing need for diverse representation, including underserved producers such as beginning, women, and minority farmers and ranchers.” Producers who participate or cooperate in an FSA program and reside in the local administrative area that’s up for election this year may be nominated. Individuals can nominate themselves or others. Organizations may also nominate individuals, including those organizations that represent beginning, women, and minority farmers. Committee members are vital to how FSA carries out disaster programs, as well as conservation, commodity, and price-support programs, county office employment, as well as other agricultural issues.
| Rural Advocate News | Thursday June 11, 2020 |
Washington Insider: New Trade Tensions with Europe Bloomberg is reporting this week that European Union efforts to soothe transatlantic trade tensions have stalled. Washington has “stepped back” in recent weeks from talks aimed at defusing a longstanding dispute over aircraft subsidies, chief EU trade negotiator Phil Hogan, told a conference of EU trade ministers on Tuesday. “Failure to reach an accord could pave the way for Europe to impose tariffs on billions of dollars of American goods as soon as July,” he said. “We must acknowledge that the U.S. is now in a pre-election phase,” Hogan said. “Political attention in Washington is therefore much more on the immediate challenges in U.S. domestic politics.” The EU wants to renew a July 2018 truce that began to fray late last year when the U.S. targeted Europe with new tariffs or warnings of them. Chief among Europe’s worries is a lingering U.S. threat to hit EU cars and auto parts with duties based on national-security grounds. President Donald Trump revived that possibility on June 5 during comments in Maine, where he demanded the EU “drop” its 8% tariff on imports of American lobster “immediately.” Trump was speaking to fishing-industry representatives who complained about European market barriers. “The European Union has ripped this country off so much, it’s unbelievable and it’s so easy to solve,” Trump said. “If they don’t change, we’re going to put a tariff on their cars until they change. And they’ll change right away.” Hogan warned the EU trade ministers on Tuesday to expect more such rhetoric as a European push for a deal with the U.S. to cut industrial tariffs across the board stalls. Meanwhile, the spotlight in transatlantic trade relations is likely to turn back to the nearly two-decade-old dispute over aircraft subsidies. Last year, the U.S. was given the green light by the World Trade Organization to impose tariffs on $7.5 billion of European goods in retaliation over illegal government aid to Airbus SE. Hogan said he expects the WTO to rule “around” early July on a parallel EU case against American aid to Boeing Co. “I regret that the U.S. has stepped back from the settlement talks in recent weeks,” Hogan said. “Positions are therefore still quite far apart. If this remains the case, the EU will have little choice but to exercise its retaliation rights and impose our own sanctions in the Boeing case, once we have the WTO award.” On a separate WTO matter, Bloomberg reported that Hogan commented that he was weighing the possibility of becoming an EU candidate in the race to lead the global trade arbiter. The EU trade ministers discussed the WTO process for selecting a successor to Director-General Roberto Azevedo, a Brazilian national who will step down a year early at the end of August. The WTO is accepting nominations between June 8 and July 8. “Certainly, I am exploring the option of being a candidate for the director-general of the WTO,” Hogan told reporters after the video conference. “There is an important amount of work to be done to reform the organization.” Europe is keen on strengthening the WTO amid growing U.S.-China tensions which threaten to undermine the global commercial order established after World War II. A European candidate for the WTO leadership would enter a field that already includes official or presumptive nominees from countries ranging from Mexico to Nigeria. The last European in the job was Azevedo’s predecessor, Pascal Lamy, a Frenchman who held the post between 2005 and 2013. So, we will see. The current political moment certainly would be especially sensitive for the Trump administration to open a new front on the lingering trade fights already underway. Still, the “get tough” trade policy has long been a central feature of the current administration’s trade arsenal as the President has already indicated?and it likely will continue to be in the future. Thus, trade policies toward Europe should be watched closely by producers as these battles intensify, Washington Insider believes.
| Rural Advocate News | Thursday June 11, 2020 |
House Judiciary Members Ask USDA to Ease Restrictions On Small Meat Processors A revisit of “burdensome regulations” on small meat processors is being called for by Republicans on the House Judiciary Committee, with the lawmakers urging USDA Secretary Sonny Perdue to make several changes as the “high cost of complying with meat processing laws has made it hard for smaller processors to compete and has led to significant consolidation in the industry.” Citing the reduced operating capacity at meat plants amid the COVID-19 pandemic, the lawmakers noted that it has left “ranchers and other livestock farmers with few alternatives for getting their meat processed.” The letter urges USDA to consider giving small meat processors flexibility on complying with Hazard Analysis and Critical Control Point (HACCP) plans, streamlining the approval process for labels, encourage more states to participate in the Cooperative Interstate Shipment (CIS) program and increase flexibility and lessen expenses on smaller processors for inspectors needed beyond normal hours. Taking action in these and other areas will “lower barriers to entry and expansion that smaller meat processors face,” the letter said. Expectations are, however, that food safety advocates will fight any efforts by USDA to relax food safety protocols.
| Rural Advocate News | Thursday June 11, 2020 |
US Meat Industry Capacity Rising: USDA USDA is touting improved capacity utilization at U.S. meat plants that have been hit by the COVID-19 pandemic. “Across the cattle, swine, and broiler sectors, processing facilities are operating more than 95% of their average capacity compared to this time last year,” USDA said in a release late Tuesday. “In fact, beef facilities are operating at 98%, pork facilities are operating at 95%, and poultry facilities are operating at 98% of their capacity compared to the same time last year.” USDA has been working with the Occupational Safety and Health Administration and the Centers for Disease Control and Prevention to make sure the plants are following the guidelines issued by the agencies for operations to protect workers and ensure the food supply.
| Rural Advocate News | Thursday June 11, 2020 |
Thursday Watch List Markets Weekly grain export sales, U.S. jobless claims, U.S. producer prices and an update of the U.S. Drought Monitor are all due out at 7:30 a.m. CDT Thursday. Natural gas inventory will be issued at 9:30 a.m., followed by the June WASDE and Crop Production reports at 11 a.m. CDT. Weather forecasts will also be monitored as will any trade news. Weather Dry conditions will cover all major crop areas Thursday. Temperatures will be seasonally warm in northern through southeastern areas and very warm to hot in drier southwest areas. This combination will allow for flooding to ease and favor crop progress and winter wheat harvest.
| Rural Advocate News | Wednesday June 10, 2020 |
Farmers Can Still Use Dicamba Under Certain Guidelines The Environmental Protection Agency says farmers and applicators who possessed one of three dicamba herbicides on June 3, 2020, can still use those products. Farmers may use those herbicides, following label instructions, and other state regulations, through July 31, 2020. That guidance follows a court decision last week vacating the registrations for Bayer's XtendiMax, BASF’s Engenia, and Corteva’s FeXapan. June 3, 2020, is the effective date of the court ruling. The ruling does not include Syngenta's Tavium. Distribution or sale of the three herbicides is prohibited except for ensuring proper disposal or return to the registrant. While the guidance from the EPA allows farmers to utilize dicamba on crops already planted this year, the future for dicamba is uncertain. EPA Administrator Andrew Wheeler says the action, "has threatened the livelihood of our nation's farmers and the global food supply." Companies, such as Bayer, are currently working with the EPA for the registration of products for 2021 and beyond. ************************************************************************************ Meatpacking Facilities Near Full Operation of 2019 Capacity The Department of Agriculture says U.S. meatpacking facilities are operating at more than 95 percent of average capacity when compared to 2019. Agriculture Secretary Sonny Perdue applauded the data, attributing the operations to the safe reopening of the facilities. USDA says beef facilities are operating at 98 percent, pork facilities are operating at 95 percent, and poultry facilities are operating at 98 percent of their capacity compared to the same time last year. Secretary Perdue thanked the industry and its workers, for "quickly getting their operations back up and running." USDA says the facilities are safely resuming operations following an executive order by President Donald Trump to implement safety guidelines to protect workers from COVID-19. The closures led to shortages at grocery stores and a backlog of animals ready to slaughter, creating depressed prices for farmers, yet higher prices for consumers. USDA says it will continue to work with safety officials to keep the facilities open while maintaining worker safety. ************************************************************************************ USDA Announces Livestock Risk Protection Program Improvements The Department of Agriculture Tuesday announced changes to the Livestock Risk Protection insurance program for feeder cattle, fed cattle and swine starting this summer. USDA’s Risk Management Agency says changes include moving premium due dates to the end of the endorsement period and increasing premium subsidies to assist producers. RMA Administrator Martin Barbre says the changes will “make these policies more usable and affordable for livestock producers.” Specifically, the changes allow premiums to be paid at the end of the endorsement period, putting it in line with other policies. USDA will increase the premium subsidy for coverage levels above 80 percent. Those with an 80 percent or higher coverage level will get a five-percentage point subsidy increase. Producers may buy the insurance throughout the year from Approved Insurance Providers, with coverage prices ranging from 70 to 100 percent of the expected ending value of their animals. At the end of the insurance period, if the actual ending value is below the coverage price, producers will be paid an indemnity for the difference. ************************************************************************************ Farm and Biofuel Leaders Demand Answers on Retroactive EPA Exemptions The biofuels industry Tuesday called on the Environmental Protection Agency to offer answers on what they call a new effort to undermine the Renewable Fuel Standard. During a Senate hearing last month, administration officials confirmed their consideration of retroactive small refinery exemptions covering previous years. The “gap-filings” are designed to reconstitute a continuous string of exemptions for select oil companies, “thus circumventing court limits on new oil industry handouts at the expense of farmers and biofuel producers.” However the ‘gap filings’ “appear to be little more than the latest in a string of oil industry tactics designed to subvert the law and sidestep a court order to uphold the RFS,” according to the letter from ten biofuels and farm groups. The groups say, “Backfilling SREs to circumvent a court decision would exacerbate market uncertainty at a time when rural communities already face unprecedented economic challenges.” The letter comes as more than 100 biofuels plants idled or cut production during the COVID-19 pandemic. ************************************************************************************ University of Missouri Updates Ag Baseline Projections The June update to baseline farm economic projections by the University of Missouri suggests a $3 billion decline in net farm income. The University’s Food and Agricultural Policy Research Institute Released the June update Tuesday. The forecasted decline in net farm income comes as farmers will receive a record total of government payments at $33 billion and total farm support reaching $50 billion in the current fiscal year. Given projected market developments and the assumption of no new government payment programs, both net farm income and net cash income are forecasted to decline again in 2021, with net farm income falling below $80 billion. The report projects 2020 corn-planted area at 96 million acres, second only to 2012, but one million acres below the March intentions report. The forecast expects corn prices received by farmers at $3.06 a bushel. Projected soybean-planted area is 84.5 million acres in 2020, up eight million acres from 2019 and one million acres from the planting intentions report. The report projects soybean prices for farmers to fall to $8.21 a bushel. ************************************************************************************ USDA Releases 2018 Puerto Rico Census of Agriculture The Department of Agriculture just released the 2018 Census of Agriculture data for Puerto Rico. The data shows that the total value of the island’s agricultural production reached $485 million in 2018, a decrease of about $63 million from 2012 when the last Census of Agriculture was conducted. In September 2017, Hurricane Maria devastated the island, largely accounting for the 37.5 percent decrease in the number of farms and the 16.6 percent decrease in land in farms. Due to the conditions caused by Hurricane Maria, NASS delayed the Puerto Rico Census of Agriculture from 2017 to 2018. The data show that popular crops like plantains and coffee experienced steep declines in value. In 2018, the value of plantain production dropped 47.5 percent and coffee dropped 83.7 percent from 2012. The new data shows that grains now represent a large portion of the total value of production in Puerto Rico, with an increase from $8.5 million in 2012 to $74.4 million in 2018.
| Rural Advocate News | Wednesday June 10, 2020 |
Washington Insider: Bringing Business Home This week, Bloomberg examined the prospects faced by U.S. efforts to reduce dependence on China and other overseas suppliers for strategic goods. The Trump administration has talked about “bringing supply chains home” since it began to implement its trade policies, Bloomberg says. It notes that President Trump recently said the U.S. would “save $500 billion” if it cut off ties with China. However, the report challenges that view, based on interviews with nearly a dozen government officials and analysts in the Asia-Pacific region. It calls administration effort to restructure supply chains “little more than wishful thinking so far,” and warns that “it won’t be simple to dismantle an entrenched system when many companies are struggling to survive.” The report says “the reality is that many firms have supply chains set up the way they do for very sensible reasons,” said Deborah Elms of the Asian Trade Centre, which has seen an increase of companies looking for advice on reorganizing to increase competitiveness. “Coming out of COVID, it’s going to be even harder to move supply chains because your cash flow is low, your staff are working from home or coming slowly back into the office, and the business climate has shifted.” While the world trade network mostly held up well amid rolling lockdowns as COVID-19 spread, the economic shock fueled calls among politicians for greater self-sufficiency and alternatives to China. U.S. Secretary of State Mike Pompeo last year named Australia, New Zealand, Japan, India, and South Korea as countries that the U.S. has been talking to on supply chains. In fact, the State Department’s new Economic Security Strategy is expanding and diversifying supply chains that protect “people in the free world,” according to Keith Krach, the State Department official who leads efforts to develop international policies related to economic growth. However, analysts are skeptical of State’s efforts and argue that they argue appears to lack any firm foundation.” The Department doesn’t have jurisdiction over trade and officials in other Asian countries say no formal talks were taking place. At the same time, some governments are moving on their own to shift production away from China. This includes Taiwan and Japan, which were among the biggest investors in China’s manufacturing capacity in the early days. “Many companies have already begun adopting a ‘China plus one’ manufacturing hub strategy with Vietnam having been a clear beneficiary,” said Anwita Basu, head of Asia country risk research at Fitch Solutions. “Shifts away from China will be slow as that country still boasts an annual manufacturing output that is so large that even a group of countries would struggle to absorb a fraction of it.” In 2019, Taiwanese officials supported construction of a “non-red supply chain” outside of China and promised rent assistance, cheap finance, tax breaks and simplified administration for investments in Taiwan that helped the island’s economy weather the trade war last year. Japan recently started down the same path, with Prime Minister Shinzo Abe’s government budgeting about 220 billion yen for companies shifting production back home and 23.5 billion yen for those seeking to move production to other countries. South Korea has similar plans as part of its economic blueprint for the rest of the year, announced earlier this month. The government said it will provide tax incentives, ease investment-related regulations and expand financial support for companies that ‘u-turn.’ Yet, it hasn’t said how much money will be earmarked for the entire support program. For all that, China retains key advantages and “remains unmatched as a manufacturing site given its numbers of skilled workers, deep supplier networks and the government’s credible public support for manufacturers and provision of reliable infrastructure,” wrote Gavekal Dragonomics analyst Dan Wang in a report in April. Even if companies find economic alternatives to Chinese factories, or bow to political pressure to increase production in their home markets, the vast and growing Chinese domestic market is a powerful attraction. Tesla Inc. is now producing cars there for what is now the world’s largest auto market. Last month Chinese Premier Li Keqiang wrote to Honeywell International Inc. to welcome its new investment in Wuhan. He and other Chinese officials have touted continued economic cooperation with the U.S. and vowed to implement a “phase one” trade deal with the U.S. reached in January. Over the long term, however, there are questions of who will pay for new plants outside China, Bloomberg says. In the end, the strongest force diluting China’s position in global supply chains likely will be the long, slow evolution of global trade as opportunities arise from new markets, new technologies and changing patterns of wealth said Elms, whose organization helps governments formulate trade policy. “The numbers have to make sense,” she said. “The structure that you have is based on millions of individual company decisions. It’s not so easy to wave a wand and say: Make it so!” So, we will see. The administration has continued its “get tough” policies on Asian, European and even North American supply chains--and reinforced those policies with strong subsidies in some cases. At the same time, the longer-term benefits of these policies are being questioned for a range of economic and policy reasons. This is a debate producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday June 10, 2020 |
Lawmakers Urge Trump to Deny Requests To Waive RFS Requirements Requests by governors of several states to waive requirements under the Renewable Fuel Standard (RFS) should be rejected as they would “only compound the challenges facing rural America and weaken one of the most successful clean air policies in the US,” a bipartisan coalition of House members said in a letter to President Donald Trump. The requests do not meet the criteria under law for waivers of the RFS as the “Recent oil market volatility is the result of COVID-19 impacts on travel and lower demand for fuel combined with high production levels in Russia and Saudi Arabia, not the RFS,” the letter said. “RFS regulations and requirements account for a drop in the demand for fuel with a proportional change in the volume of renewable fuel required.” They also point out that there “is an excess supply of RINs (Renewable identification Numbers) currently on the market and available to refiners, offering flexibility for RFS compliance.” House Ag Committee Chairman Collin Peterson, D., Minn., is among the 44 House members signing the letter.
| Rural Advocate News | Wednesday June 10, 2020 |
EPA Says Farmers Can Use Dicamba on Hand As Of June 3, Through July 31 EPA has issued guidance for the use of three dicamba products that were on hand as of June 3, the date of the Ninth Circuit Court of Appeals ruling to vacate registrations of those products. The cancellation order issued by EPA addresses sale, distribution, and use of existing stocks of the three affected dicamba products – XtendiMax with vapor grip technology, Engenia, and FeXapan. Under the order, “Distribution or sale by any person is generally prohibited except for ensuring proper disposal or return to the registrant,” EPA said. “Growers and commercial applicators may use existing stocks that were in their possession on June 3, 2020, the effective date of the Court decision. Such use must be consistent with the product’s previously approved label, and may not continue after July 31, 2020.” EPA Administrator Andrew Wheeler said the court decision “has threatened the livelihood of our nation’s farmers and the global food supply.” The cancellation order and existing stocks order is “consistent with EPA”s standard practice following registration invalidation, and is designed to advance compliance, ensure regulatory certainty, and to prevent the misuse of existing stocks.” Since the court ruling June 3, EPA said it has been “overwhelmed with letters and calls from farmers citing the devastation of this decision on the millions of acres of crops, millions of dollars already invested by farmers, and threat to America’s food supply.”
| Rural Advocate News | Wednesday June 10, 2020 |
Wednesday Watch List Markets With U.S. crops in the ground, Wednesday likely starts with a check on the latest weather forecasts. The U.S. Labor Department reports on consumer prices at 7:30 a.m. CDT, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m. The U.S. Treasury reports on the federal budget at 1 p.m. CDT, the same time the Federal Reserve concludes its two-day meeting with an announcement. Weather Wednesday will see additional shower and thunderstorm activity across the Midwest. Rainfall will be light to locally moderate. Flash flood risk is still high in portions of the western Midwest. Strong thunderstorm winds are also likely throughout the central U.S. The rain will also be accompanied by notably cooler conditions. We'll also see light rain in the Southeast while dry conditions remain in effect over the southern Plains.
| Rural Advocate News | Tuesday June 9, 2020 |
EPA Cancels Dicamba Registrations The Environmental Protection Agency late Monday canceled the registrations for three dicamba herbicides. The move follows a Ninth Circuit Court of Appeals ruling vacating the registrations of Bayer’s XtendiMax with vapor grip technology, BASF’s Engenia, and Corteva’s FeXapan. The EPA says growers and commercial applicators may use existing stocks that were in their possession on June 3, 2020, the effective date of the Court decision. Such use must be consistent with the product’s previously-approved label, and may not continue after July 31, 2020. EPA Administrator Andrew Wheeler calls the action “consistent with EPA’s standard practice following registration invalidation.” He adds the court decision “has threatened the livelihood of our nation’s farmers and the global food supply.” Distribution or sale by any person is generally prohibited except for ensuring proper disposal or return to the registrant. The court decision and EPA action does not include Syngenta’s dicamba herbicide, called Tavium. ************************************************************************************ Away From Home Eating Drops 51 Percent in March The COVID-19 pandemic and resulting stay-at-home orders have dramatically impacted Americans' food spending, according to the Department of Agriculture. USDA's Economic Research Service says, unlike previous economic shocks, the COVID-19 shock has led to a pronounced substitution from food away from home towards food at home. Inflation-adjusted expenditures at grocery stores and other retailers, described as food at home, were 6.5 percent higher in February 2020 compared with February 2019. The same spending was 18.8 percent higher in March 2020 compared with March 2019. Comparing spending for the same month accounts for seasonal food spending patterns. Inflation-adjusted February 2020 expenditures at eating-out establishments, restaurants, school cafeterias, sports venues and other places, were 39.3 percent lower than February 2019 expenditures. March 2020 food-away-from-home spending was 51 percent lower than March 2019 spending. During the Great Recession of 2007-09, expenditures on both food at home and food away from home decreased, with the largest decrease in February 2009. ************************************************************************************ Restaurant Coronavirus Recovery Underway The restaurant industry recovery from the COVID-19 pandemic is underway. New data shows the industry brought back 1.37 million workers last month, and consumers are eating out again. More restaurants, and particularly large chain restaurants, have seen a resurgence in sales in recent weeks. However, Restaurant Business Online reports the industry remains far below employment levels from before the coronavirus pandemic, suggesting that it could be years before the number of workers lost over that six-week period are fully regained. The restaurant industry employed 7.6 million workers in May, up 22 percent from April’s decades-long low of 6.3 million. It is still 37 percent below February levels, or about 4.4 million employees. The Independent Restaurant Coalition told the publication, "Congress needs to pass a relief package specifically designed to protect our industry," noting that restaurant workers continue to make up the largest share of jobless Americans. Many restaurants were forced to close when the pandemic began. ************************************************************************************ April Red Meat Exports Weather Production Challenges, Economic Headwinds April proved to be a solid month for U.S. beef and pork exports despite COVID-19 related interruptions in production and trade. U.S. Meat Export Federation President and CEO Dan Halstrom says, “despite these significant headwinds, global demand for U.S. beef and pork remained strong." Beef exports were below last April's large totals but still topped $600 million in value. Pork exports remained well above year-ago levels but slowed from the record pace established in the first quarter. While May export results will likely reflect similar obstacles, Halstrom noted that red meat production continues to recover, setting the stage for a strong second half of 2020. April beef exports were down six percent from a year ago to 98,600 metric tons, with value falling 11 percent to $600.9 million. For pork, April volume reached 264,000 metric tons, up 22 percent from a year ago but the lowest since November 2019. Export value was $682.8 million, up 28 percent year-over-year but the lowest since October 2019. ************************************************************************************ Lawmakers Seek Wheat Classes Included in CFAP Lawmakers from Washington state want the Department of Agriculture to include three classes of wheat for coverage under the Coronavirus Food Assistance Program, or CFAP. Republican Representatives Dan Newhouse and Cathy McMorris Rodgers presented the request in a letter to Agriculture Secretary Sonny Perdue late last week. The letter seeks the inclusion of soft white, hard red winter and soft red winter wheat classes for coverage in the CFAP. The lawmakers say, “These classes of wheat, like so many other commodities, have been negatively impacted by the COVID-19 pandemic and need assistance under this program.” From January to April, the market for soft white wheat dropped more than 8.5 percent. Soft red winter wheat futures contracts range from $5.77 a bushel to $4.98. And, hard red winter wheat ranged from $5.07 in a bushel in January to $4.23 a bushel in March. CFAP was created as a result of the CARES Act relief package to provide direct relief to farmers and ranchers impacted by the COVID-19 pandemic. ************************************************************************************ Gas Price Continue March Higher The national average gas price continues to march higher for the sixth conservative week, gaining 4.3 centers per gallon to $2.02, according to GasBuddy. The average price of diesel rose 0.1 cents to $2.41 per gallon over the same period. Patrick De Haan of GasBuddy attributes the trend to increased demand as Americans return to the roadways, and OPEC extending its large oil production cuts until at least July. De Haan says, “The anxiety pushing oil prices up is coming from the fact that the economy may be recovering quicker than most anticipated.” Crude oil prices continued to rally over the last week on positive economic data. Optimism has played a key role in boosting oil prices. OPEC has extended production cuts for now while demand continues to rally globally. However, Saudi Arabia reminded the market it may not hold its most severe production cuts beyond June to keep oil’s rally in check and likely in hopes of holding off a return of U.S. oil production.
| Rural Advocate News | Tuesday June 9, 2020 |
Washington Insider: More Aid Dollars for Farmers It has been clear for some time that farmers are on the front line of number of recent trade fights as well as the recent market disruptions from pandemic. And, with fewer people filling up their gas tanks, the demand for ethanol made from corn has cratered. This week, however, the New York Times ran a long front-page article that calls USDA’s farm relief programs excessive. The article notes that the Trump administration’s $28 billion efforts in 2018 and 2019 to compensate farmers for losses from its trade wars were devised hastily and heavily political. It worries that the administration’s new program to send farmers tens of billions more to offset losses from the coronavirus pandemic faces questions about how the money will be allocated and “whether there is sufficient oversight to guard against partisan abuse of the program.” Months before an election in which some farm states are major battlegrounds, Democrats and other critics of the administration’s agriculture policies are expressing concern that the new subsidies, provided by Congress with bipartisan backing, will be doled out to ensure continued backing of one of the president’s key voting blocs. Given the track record with the trade relief program, “I think Congress should be concerned in terms of letting USDA just write checks with no oversight,” said Joseph Glauber, a top economist with the department for 22 years who is now with the International Food Policy Research Institute. “Are these programs politically motivated? The short answer is yes,” he said. Bill Northey, USDA’s undersecretary who oversees the aid, denied that motivation, saying “nothing could be further from the truth.” The Agriculture Department has set aside $16 billion for relief from economic damage caused by the pandemic. But both administration officials and many members of Congress consider that only a down payment on farm losses that some estimate could climb to $40 billion. The Times calls the new program the latest example of the “outsize clout wielded in Washington by operators of the nation’s roughly two million farms -- and the eagerness of politicians to help them.” It concludes that despite decades of talk about weaning farmers off subsidies, USDA remains “a font of funds from administration to administration -- and “now could take that assistance to a new level.” When the president's tariffs on China and other countries set off trade reprisals in early 2018, the president also seized on the USDA's ability to borrow from the Treasury to pay $12 billion in trade relief. That more than doubled what the administration was already paying out through other programs meant to protect farmers from falling prices, the Times said. Not only has the Trump administration showered farmers with money, the article notes a study from Kansas State University that concludes that farmers were paid up to as much as eight times their estimated losses from trade friction in 2018. Payments were even more generous in 2019, ranging from one-and-a half to 33 times estimated losses, after the department loosened how it calculated the trade damage to farmers, the researchers found. The trade relief payments drove up net farm income by 12% in 2019, according to Glauber. Without them, it would have fallen by 5%, he said. Both the Kansas State economists and the Democratic staff of the Senate agriculture committee found regional disparities in the disbursement of the aid. “It’s stunning really. These are states that have positive political relationships with the president,” said Senator Debbie Stabenow, D-Mich., the ranking Democrat on the Senate agriculture committee. She said she wanted to help farmers recover losses, but “the reality is that the administration up to this point has not distributed financial support in an equitable way.” Economists say the Agriculture Department, under intense pressure from both the White House and Congress to deliver coronavirus checks to farmers, seems again engaged in major guesswork in trying to calculate losses. “They are basically running in the dark,” one analyst told the Times. President Trump is likely to be firmly behind rising demands to bolster the program when the $16 billion runs out, possibly by drawing on another $14 billion for the Commodity Credit Corporation authorized in the stimulus bill, the Times said. The president routinely cites his administration’s generosity to farmers as a political selling point. “Under three years of my administration, net farm income has already gone up nearly 50 percent and will now be rising even faster,” he proclaimed in January. That was a slight exaggeration, NYT says. The combination of subsidies and higher commodity prices in 2017 drove up net farm income 42% in Trump’s first three years in office, according to Glauber. So, we will see. Clearly, many politically sensitive producers worry about the role of government in the farm sector — even though there are many groups that are receiving subsidies just now. These payments clearly can reduce market pain. In addition, they are important supports that should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday June 9, 2020 |
Trump Threatens New EU, China Tariffs President Donald Trump late last week threatened to impose tariffs on cars made in the European Union (EU) and on unspecified Chinese products unless the trading partners reduce their duties on U.S. lobster. The president has frequently threatened tariffs on autos imported from the EU, mainly to get the trading bloc to agree to negotiations and force German automakers to commit to new investments in the U.S. As for China, the Phase One agreement with the country was expected to result in changes in several trade areas, but Trump, speaking in Maine standing behind lobster traps, indicated China could be hit with tariffs as well.
| Rural Advocate News | Tuesday June 9, 2020 |
EPA’s Wheeler Says Agency ‘Disappointed’ In Court Ruling On Dicamba The recent decision by the Ninth Circuit of Appeals to vacate the approval of three dicamba products is being assessed by EPA, with a statement from Administrator Andrew Wheeler saying the agency is “disappointed” by the decision. “The 2020 growing season is well underway and this creates undue burden for our first conservationists – farmers,” Wheeler said. “EPA has been overwhelmed with letters and calls from farmers nationwide since the Court issued its opinion, and these testimonies cite the devastation of this decision on their crops and the threat to America’s food supply. In a decision late Monday, EPA issued a cancellation order for the three dicamba herbicides. The agency will permit growers and commercial applicators to use any existing stocks of three herbicides -- XtendiMax, Engenia and FeXapan -- that were in their possession as of June 3.
| Rural Advocate News | Tuesday June 9, 2020 |
Tuesday Watch List Markets The Federal Reserve begins a two-day meeting Tuesday and will provide comments on the economy Wednesday. The interest rate is expected to remain near zero. Traders will also keep close watch on the latest weather forecasts and trade news. Weather Moderate to heavy rain with a high risk of flooding will cover much of the western Midwest Tuesday. We'll also see thunderstorms with locally heavy rain and some flood risk cross the Northern Plains. Meanwhile, high winds will stress crops and threaten property in the central and Southern Plains, eastern Midwest and Delta. Stressful heat in far southern crop areas is another Tuesday feature.
| Rural Advocate News | Monday June 8, 2020 |
World Dairy Expo Canceled for the First Time The World Dairy Expo will not take place in 2020, the first time it’s been canceled in 53 years. The World Dairy Expo Committee made a difficult decision based on public health orders and restrictions related to COVID-19 that are in place and issued by Public Health in Madison and Dane County, Wisconsin. World Dairy Expo was to take place in Madison from September 29 through October third. Last year, the event hosted more than 62,000 people from almost 100 countries. “Our collective hearts are heavy as we share with you that the World Dairy Expo 2020 has been canceled,” says WDE General Manager Scott Bentley. “We know how much this hurts because we feel it too. Please know that other options were explored and considered by the World Dairy Expo Executive Committee and staff.” Public health officials in Dane County, Wisconsin, anticipate that access to the Expo would be limited to 250 people at outdoor events come late September and early October. “We recognize our responsibility to maintain the health of our community and the safety of all of you as exhibitors, attendees, as well as volunteers,” Bentley adds. ********************************************************************************************** Justice Department Subpoenas Information from Meatpackers The Justice Department has made a formal demand for information from the country’s four biggest meatpackers as they investigate potential antitrust violations. A Bloomberg article says that deepens the scrutiny of an industry that’s already been hit hard by plant shutdowns due to the coronavirus. The department’s antitrust division sent civil investigative demands, which are similar to subpoenas, to the companies. The Justice Department is also talking with state attorneys general about the probe after a group of states called for an official investigation. The four meatpackers that control more than 80 percent of the U.S. beef processing market include Tyson Foods, JBS, Cargill, and National Beef Incorporated. Their dominance in the industry has sparked concerns about their pricing power over livestock suppliers for years. Bloomberg says three of the companies didn’t immediately respond to a request for comment. National Beef, based in Kansas City, Missouri, confirmed they did get the civil investigative demand from the Justice Department, but they noted that ”The request is very narrow in scope, which leads us to believe that the DOJ doesn’t necessarily believe there is an antitrust issue.” The Justice Department subpoenas to meatpackers follow criminal charges last week against four current and former executives of chicken processing companies. ********************************************************************************************** Less Than a Month Before USMCA Goes into Effect So, where do things stand on the U.S.-Mexico-Canada Trade Agreement as it goes into effect in less than a month? Politico says North American leaders are selling USMCA as a big win that will remove uncertainty in the region. However, there are still some agricultural issues between the U.S. and Mexico that have to be worked out yet. Kenneth Smith Ramos, Mexico’s former chief USMCA negotiator, says Southern U.S. growers and U.S. Trade Representative Robert Lighthizer are still talking through seasonal produce concerns. Seasonal produce growers mainly located in Florida and Georgia have pushed for special provisions in USMCA that would allow them to more easily petition for anti-dumping or countervailing duties on Mexico, but that was left out of the final agreement. Still, they’re pushing for rules that would allow them to fight Mexican growers. In the meantime, Mexican officials are still concerned about talk of the U.S. doing more border inspections. Mexico agreed to increased border inspections as part of a tomato suspension agreement, but now there’s a push to extend that to other agricultural goods entering the United States. ********************************************************************************************** NCBA Applauds Emergency Grazing Legislation The National Cattlemen’s Beef Association applauded the introduction of the bipartisan, bicameral PASTURE Act of 2020. PASTURE stands for Pandemic Authority Suitable To Utilize Easements. The Bill was introduced in the House by Kansas Republican Roger Marshall and Minnesota Democrat Angie Craig. Companion legislation in the Senate was introduced by South Dakota Republican John Thune and Minnesota Democrat Tina Smith. “Yesterday’s introduction of the PASTURE Act is a welcome step toward providing grazing flexibility to livestock producers during the COVID-19 pandemic,” says Ethan Lane, the NCBA Vice President of Government Affairs. “As farmers and ranchers are keeping and feeding livestock for longer periods of time, Congress must ensure that producers do not face a forage shortage. Emergency haying and grazing of Conservation Reserve Program Acreage is a relied-upon practice for livestock and forage management.” The PASTURE Act gives USDA the ability to open up CRP acreage for emergency haying and grazing during the COVID-19 pandemic. Back in mid-May, NCBA and 35 state affiliates sent a letter to Congress urging them to take action on this issue. ********************************************************************************************** The U.S. Reaches an Organic Equivalence Agreement with Taiwan The quickly-growing organic market in Taiwan is poised to grow even faster. Late last week, the U.S. and Taiwan reached an organic equivalence arrangement to enable increased trade between the two regions. Taiwan is already the fifth-largest export market for U.S. organic products. The new arrangement will remove previous barriers for exporters, providing an opportunity for U.S. organic products to gain a greater share in the Taiwanese marketplace. Taiwan’s imports of U.S. organic products have increased sharply in the past few years, with imports totaling over $90 million last year, and are forecast to grow by just about 50 percent over the next five years. “We are pleased to see the enthusiasm from both the U.S. and Taiwanese governments to reduce trade barriers for organic products and ensure more consumers have access to the wide variety of high-quality organic goods the U.S. can provide,” says Laura Batcha (BATCH-ah), Executive Director and CEO with the Organic Trade Association. Taiwan imports multiple organic products from the U.S., including apples, lettuce, grapes, cauliflower, celery, and processed products. The OTA says they’ll provide resources and activities for exporters who wish to explore potential business opportunities with Taiwan. ********************************************************************************************** Bill Would Help Farmers Sell Carbon Credits The agriculture industry would be able to take part in an expanding carbon credit market thanks to bipartisan legislation introduced last week. A report in The Hill Dot Com says the goal of the legislation would be to provide money to farmers for using sustainable farming practices. Farming is a source of carbon emissions, but it also presents vast opportunities to sequester carbon in both the soil and plants. The legislation would require the USDA to create a certification program to help farmers and landowners in implementing protocols and monetizing the climate value of their sustainable practices. “As Americans, we have the ability to come up with climate solutions that can benefit our economy and our way of life,” says South Carolina Republican Senator Lindsey Graham, who co-sponsored the bill. “This legislation is an opportunity to put our knowledge and can-do spirit to work to promote business opportunities for the agriculture industry while promoting the protection of our environment.” The bill has the support of environmental and farm groups, along with numerous corporations like McDonald’s and Microsoft, both of which have promised they will reduce their carbon footprints.
| Rural Advocate News | Monday June 8, 2020 |
Washington Insider: Complicated Jobs Report Brings Some Relief The monthly U.S. jobs report can often surprise relative to projections, but forecasts have never been so spectacularly wrong as they were for May’s data out Friday. The “miss” raised the question of why it was so wide, Bloomberg is reporting. A record 2.5 million workers were added by employers during the month, compared with a median projection for a loss of 7.5 million jobs. Of the 78 economists surveyed by Bloomberg, the most optimistic forecast called for an 800,000 decline. Their estimates also expected the unemployment rate to approach 20% -- the highest since the Great Depression in the 1930s -- when in fact it declined to 13.3%. Playing a huge role in economists’ forecasts were floods of applications for jobless insurance and tens of millions of Americans still on benefit rollsâ??larger that the U.S. has ever experienced in such a short timespan. Moreover, economists’ models “probably” failed to fully take into account the government’s relief response, specifically the Paycheck Protection Program that provides firms funding to keep workers on staff. Before this year, the biggest single-month miss on the payrolls report was 318,000 in February 2003, according to Bloomberg survey data going back to 1996. The sudden nature of the downturn is putting a premium on real-time data to help produce more in-the-ballpark estimates for economic data. "These improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain it," the Bureau of Labor Statistics said. "In May, employment rose sharply in leisure and hospitality, construction, education and health services, and retail trade. By contrast, employment in government continued to decline sharply." The Washington Post asked, is there a mistake in the data? The BLS, which is part of the Labor Department “admitted” there was a classification error. In a special note, it said the May unemployment rate would be about 16.3%, down from an April unemployment rate of more than 19%, if this error hadn’t happened. This meant that some people who should have been classified as unemployed were instead classified as employed but “absent” from work for “other reasons.” This “other reason” category is normally used for people on vacation, serving jury duty or taking leave to care for a child or relative. But in this unusual pandemic circumstance, the “other reason” category got applied to some people sitting at home and waiting to be called back. The same thing happened in April, and would have added nearly another five percentage points to the 14.7% unemployment rate for that month, the agency said. BLS does not like to change people’s answers, because they don’t want to tamper with the data. In conclusion, the Post said that whether you look at the official unemployment or this amended unemployment rate, “the bottom line remains: Unemployment is still high, but it went down slightly in May.” The Post also “vouched” for the BLS. “You can 100% discount the possibility that political interference occurred. Not 98% discount, not 99.9% discount, but 100% discount,” tweeted Jason Furman, the former top economist for President Barack Obama. “BLS has 2,400 career staff of enormous integrity and one political appointee with no scope to change this number.” The bureau used the same methodology that it uses every month: It looks at who was working and who wasn’t mid-month. Specifically, the agency looked at the week of May 10 to 16. Like always, the Census Bureau collected data for the BLS in two ways. In one survey, census workers literally go out and ask some people about their situation and in the other, BLS workers look at company and government payrolls from 140,000 establishments to see how many people are employed and how many hours they are working. The Post notes that “even the latest data shows 28 million people had their job cut or hours reduced during the pandemic. Plus, an alarming number â?? 2.3 million people â?? now say they have permanently lost their jobs.” In the end, perhaps the best figure to look at to gauge the health of the labor marketâ??and how the economic rebound is goingâ??is what share of the adult U.S. population is employed. Economists call this the “employment-to-population ratio.” It plunged in April and has come back only slightly. Any improvement is encouraging. It makes a difference for those who did get their jobs back. But it’s clear there’s still a long way to go to get back to anything close to pre-pandemic levels. So, we will see. Forecasting job numbers is always tricky and difficult, and during a pandemic, everything is different. Clearly, it will be a severe challenge to learn just how to read the numbers now in a period of dramatic change, a challenge that likely will be with us for some time, Washington Insider believes.
| Rural Advocate News | Monday June 8, 2020 |
CFAP Payments At $545 Million USDA as of June 3 paid out $545 million in payments via the Coronavirus Food Distribution Program (CFAP). Of the payments, $140.3 million have been made for non-specialty crops (corn, soybeans, etc.), $8.4 million in specialty crops, $267.8 million for livestock and $128.6 million for dairy. There have been payments made to 35,000 producers so far, according to USDA Secretary Sonny Perdue, with more than 86,000 applications filed with USDA. The specialty crops are small possibly because many have had no prior participation in FSA programs, contacts advise. But the levels for non-specialty crops could also be the unpriced inventory issue that has caused program implementers some problems. And, the process with Farm Service Agency offices being impacted by COVID-19 issues could also be playing a role.
| Rural Advocate News | Monday June 8, 2020 |
US Ag Trade Data Shows Sector Echoed Broader Trade Data The value of U.S. ag exports in April dropped to $10.67 billion, down 10.3% from $11.89 billion in March, as COVID-19-related impacts slowed demand from U.S. buyers. While the value of ag imports dropped to $11.40 billion in April, down 8% from $12.39 billion in March, it left a deficit for the month of $733.8 million. This marked the second monthly batch of trade red ink for the sector in a row and the third in four months. The fall in exports being more dramatic than the fall in imports matched the overall trade picture in April where exports were at $151.3 billion, down 20.5%, while imports were at $200.7 billion, down 13.7%. So far in Fiscal Year (FY) 2020, U.S. ag exports are valued at $81.9 billion against imports of $78.04 billion for a trade surplus of $3.86 billion. So far in FY 2020, the value of ag exports and imports are both above the same point in FY 2019. USDA has lowered its forecast for FY 2020 U.S. ag exports to $136.5 billion ($139.5 billion prior) and trimmed the import outlook to $130.2 billion ($132.5 billion), leaving a surplus of $6.3 billion. To meet USDA’s forecasts, exports would have to average $10.92 each month and imports $10.432 billion.
| Rural Advocate News | Monday June 8, 2020 |
Monday Watch List Markets Heading into the second week of June, traders will be paying close attention to U.S. and international weather forecasts, noting row crop development and major wheat crop conditions. USDA's report of weekly grain export inspections is due out at 10 a.m. CDT and will mark the start a new season for wheat. Crop Progress is set for 3 p.m. with interest now shifted to crop condition updates. Weather Monday features a large contrast in crop weather conditions. The Midwest and Delta have heavy rain and flood threats in store from the remnants of Tropical Storm Cristobal. We’ll also see locally heavy showers in the far Northern Plains and Canadian Prairies. Meanwhile, hot and windy conditions in the central and southwest Plains will stress crops and bring on wildfire danger. Record early-June heat has been recorded in much of the western Midwest and Plains.
| Rural Advocate News | Friday June 5, 2020 |
Dicamba Makers Assessing Next Steps Following Court Ruling Makers of dicamba herbicides are assessing what’s next following a court ruling vacating registration of the products. A U.S. appeals court ruling this week vacates current U.S. registrations of certain low volatility dicamba products, including Bayer’s XtendiMax Herbicide. The ruling comes after a group of environmental organizations filed a petition challenging the Environmental Protection Agency’s 2018 registration decision. In a statement, Bayer says, "We strongly disagree with the ruling and are assessing our options." This week, the court stated, "the absence of substantial evidence to support the EPA’s decision compels us to vacate the registrations.” The ruling pertains specifically to the EPA’s 2018 registration decision, which expires in December 2020. CropLife America President and CEO Chris Novak expressed disappointment with the ruling, stating, “We continue to support the science-based decisions made by career scientists at the EPA,” adding “We hope that EPA’s next steps will reflect the needs of American farmers for regulatory certainty and science-based decision-making.” The ruling also includes dicamba herbicides from BASF and Corteva. It does not include a dicamba product from Syngenta. ************************************************************************************ USDA Issues First Coronavirus Food Assistance Program Payments The Department of Agriculture Thursday announced the approval of more than $545 million in payments to farmers through the Coronavirus Food Assistance Program, known as CFAP. The Farm Service Agency began taking applications on May 26, and the agency has received more than 86,000 applications. FSA has already made payments to more than 35,000 producers. Out of the gate, the top five states for CFAP payments are Illinois, Kansas, Wisconsin, Nebraska and South Dakota. FSA will accept applications through August 28, 2020. Through CFAP, USDA is making available $16 billion in financial assistance to farmers and ranchers who have suffered a five-percent-or-greater price decline due to COVID-19, and face additional significant marketing costs as a result of lower demand, surplus production, and disruptions to shipping patterns and the orderly marketing of commodities. Agriculture Secretary Sonny Perdue says FSA has the resources to “complete applications as smoothly and efficiently as possible.” Producers can download the CFAP application and other eligibility forms from farmers.gov. ************************************************************************************ Senators Announce Growing Climate Solutions Act New legislation would create an environmental credit marketplace for farmers. The Growing Climate Solutions Act, led by Michigan Democrat, Senator Debbie Stabenow, creates a certification program at the Department of Agriculture to help solve technical entry barriers that prevent farmer and forest landowner participation in carbon credit markets. Issues, including access to reliable information about markets and access to qualified technical assistance providers and credit protocol verifiers, have limited both landowner participation and the adoption of practices that help reduce the costs of developing carbon credits. The bill is backed by top farm and environmental groups, as well as Fortune 500 companies. The bill establishes a Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program. Through those programs, USDA will "provide transparency, legitimacy, and informal endorsement" of third-party verifiers and technical service providers. Those providers would help private landowners generate carbon credits through a variety of agriculture and forestry-related practices. ************************************************************************************ Sugar Association Wants Greater Sweetener Labeling Transparency A petition by the Sugar Association asks the Food and Drug Administration to "require complete and accurate labeling" of low- and no-calorie sweeteners on food packages. The association says the move would extend labeling transparency, end misleading practices and help consumers make more informed decisions. The petition asks the FDA to require the term "Sweetener" in parentheses after the name of all non-nutritive sweeteners in the ingredient list. For children's food and beverages, they ask the FDA to require indication of the type and quantity of non-nutritive sweeteners, in milligrams per serving, on the front of food packages. Research by the association found that, given a list of food additives, consumers correctly identified sweetening ingredients only 37 percent of the time. And, 66 percent of consumers say it's important for sugar substitutes to be clearly identified as sweeteners on food labels. Sugar Association President and CEO Courtney Gaine says, “These changes are necessary to close a gap in food labeling,” adding they are also necessary to “provide consumers with complete transparency and accurate information.” ************************************************************************************ NFU Comments on Price Fixing Indictments Price fixing indictments in the chicken processing sector highlights the need for greater oversight, according to the National Farmers Union. Four current and former executives at Pilgrim’s Pride Corp. and Claxton Poultry Farms, both of which produce chicken, were indicted this week for colluding to inflate the prices of birds sold to grocery stores and restaurants. NFU says the indictments show there is a need for greater antitrust enforcement and farmer protections. NFU President Rob Larew says price fixing is “extremely harmful” to agriculture and consumers. However, he says price fixing is only a symptom of the much bigger problem of corporate consolidation, and companies are only able to employ anticompetitive business practices when they’ve gathered control over their respective industries. Larew says price fixing can be avoided by enforcement of antitrust policy, restoring competition in the agricultural marketplace reinstatement of the Grain Inspection, Packers and Stockyards Administration and developing strong protections for farmers. ************************************************************************************ Warmer, Drier Summer Makes for Average Missouri River Forecast An expected warm and dry summer has the Missouri River forecast on an average path for 2020. Water releases from Gavins Point Dam will remain at 33,000 cubic feet per second in June, which is about average, according to the Army Corps of Engineers. May runoff in the upper basin was about 130 percent of average. However, the summer climate outlook indicates a return to warmer and drier conditions in the upper basin. Still, the 2020 calendar year upper basin runoff forecast is 32.3 million acre feet, 125 percent of average. The June 1 forecast is in the top 25 percent of the 122 years of runoff record. Soils are drying out in the upper Missouri River Basin, following much wetter-than-normal conditions in 2018 and 2019. The potential for flooding remains in the Missouri River Basin, particularly in the lower river, due to the potential for locally heavy rain and runoff. Further, levee repairs continue from flooding last spring, kicked off by the March 2019 bomb-cyclone weather event.
| Rural Advocate News | Friday June 5, 2020 |
Washington Insider: Chicken Probe Ensnares a CEO, Other Executives DTN and others are reporting this week that amid the long list of new economic threats to meat producers, plain old anti-competitive behavior can still attract official attention. Bloomberg reports that “toward the end of every year, chicken producers compete for massive contracts with grocery stores and fast-food chains across America. At least, that’s how it’s supposed to work.” But reality is sometimes messier, Bloomberg thinks. A string of text messages and emails disclosed in a federal indictment Wednesday featured a 2014 exchange with Jayson Penn, the now-chief executive officer of chicken giant Pilgrim’s Pride Corp., asking unnamed colleagues about negotiations with a restaurant franchise. The manager responded that, “They are listening to my direction.” “Who is they?” Penn asked. If “they” is illegal, he said, “don’t tell me.” Bloomberg says that now, after years of talk, the feds have finally pounced: Big Chicken, they say, has been fixing prices. Bloomberg calls the case, “one of the stranger examples of alleged market-rigging in a long history and an unusual one in that the chief of a company this big is actually facing criminal charges.” The U.S. Justice Department filed a case Wednesday that appears to document executives at competing companies colluding to share pricing and bidding information from 2012 through 2017 in “the cut-throat world of commodity chicken.” Penn was indicted by a grand jury in Colorado along with a former vice president of the company. There are also charges against executives from Claxton Poultry Farms Inc., a tiny player with about 1% market share. Pilgrim’s, which is majority owned by Brazilian food giant JBS SA, denied the charges. It will “continue to fully cooperate with the Department of Justice in their investigation,” it said. The Justice Department filing includes some colorful text-message exchanges that suggest that the poultry giant was in regular communication with rivals over prices. That indicates more changes could come after a decade of hearings on antitrust and consolidation in the industry and a slew of civil lawsuits. “It’s hard to get anything more solid than having text messages of people working together to rig prices,” said Christopher Leonard, author of “The Meat Racket,” which examines the protein industry. “This is the most significant action by the federal government on the meat industry in probably decades.” The case against Pilgrim’s is part of an ongoing investigation into allegations of price fixing by chicken processors, which also includes Tyson Foods Inc. and Sanderson Farms Inc. Together, Pilgrim’s, Tyson and Sanderson control almost half of the U.S. chicken market, Bloomberg said. While Wednesday’s charges are unrelated to the current coronavirus crisis, they likely signal that enforcers will be increasingly vigilant about issues in the industry. The Justice Department also probing potential market manipulation at beef processors, and USDA is separately investigating processor margins. The four executives charged face a statutory maximum penalty of 10 years in prison and a $1 million fine. In addition, the text exchanges give the public a glimpse into the market, Bloomberg says. And, the messages between executives reveal that a difference of just pennies in prices can mean hundreds of thousands of dollars in additional profit because of the plant’s scale. The Justice Department is expected to bring additional charges in the investigation, said Lisa Phelan, a lawyer at Morrison Foerster LLP in Washington and a former prosecutor with the Justice Department. Pilgrim’s Pride is probably negotiating a plea agreement with the government, she said, and other companies in the industry could be targeted, which is typical in a price-fixing investigation. “The DOJ always looks to hold both the companies and executives responsible for any kind of collusion in cartel conduct,” Phelan said. “If these allegations are true, they offer more evidence of an industry that has no problem exploiting workers and now possibly customers, for their gain,” said Minor Sinclair, Director of U.S. Domestic Programs at Oxfam America, an advocacy group that also holds shares in Pilgrim’s. Food shortages during the coronavirus pandemic and market disruptions from outbreaks at meat plants have further focused political attention on the risks in food industry consolidation. Even with the administration’s anti-trust investigation into big meatpacking companies, convictions and compliance actions may be months or years away. The charges against chicken processors demonstrate a commitment to enforcement of price-fixing laws, industry observers say. So, we will see. While the meat processors tend to be concentrated, most analysts say that supply and demand “remain” the primary driver of prices. However, the industry’s questionable health record and worries about supply and price uncertainties are increasingly attracting attention in the urban press and elsewhere. One result is declining consumer confidence at a time when “competitive” manufactured products are gaining modest market shares. These are trends producers should watch closely as they evolve, Washington Insider believes.
| Rural Advocate News | Friday June 5, 2020 |
Court Blocks Sale of Dicamba in US From Bayer, Others The U.S. Court of Appeals for the Ninth Circuit issued a ruling that effectively blocks Bayer and BASF from selling the herbicide dicamba in the U.S., ruling that EPA “failed entirely” to acknowledge risks from the herbicide and that the agency violated federal regulations in October 2018 when it issued a two-year approval for the herbicide. “We strongly disagree with the ruling and are assessing our options,” Bayer spokesman Chris Loder told Bloomberg via email. “If the ruling stands, we will work quickly to minimize any impact on our customers this season.” The ruling also applies to dicamba-based herbicides from BASF and Corteva Agriscience. BASF said the ruling could have a “significant adverse impact” on its customers that have already purchased such products for this growing season.
| Rural Advocate News | Friday June 5, 2020 |
Conflicting Reports Continue on State of US Soybean, Ag Product Sales to China News reports continue to provide conflicting signals on the state of U.S. ag exports to China of soybeans and other ag products. The Wall Street Journal Wednesday reported Chinese state-controlled companies have canceled transports for some shipments from American exporters as new tensions flare between Washington and Beijing. Maritime executives told the paper at least 23 cargoes of soybeans were withdrawn and that a handful of shipments of other agriculture commodities were “pushed back.” However, the article noted a similar Bloomberg report that Chinese importers late last week had been seeking 20-30 cargoes of U.S. soybeans, but opted to hold off. Meanwhile, the China-run Global Times said that sales of U.S. soybeans to China announced this week are proof that there has been no halt in the purchases as has been reported. They quoted Zhang Xiaoping, country director for China at the U.S. Soybean Export Council, as saying Chinese firms are still buying U.S. soybeans in line with market rules, unaffected by diplomatic tensions between the two sides.
| Rural Advocate News | Friday June 5, 2020 |
Friday Watch List Markets At 7:30 a.m. CDT Friday, the U.S. Labor Department will announce what is expected to be a large loss of non-farm payrolls in May, along with May’s U.S. unemployment rate. Traders will continue to monitor the latest weather forecasts and any trade news, especially if it concerns China. Weather Moderate to locally heavy rain will cover much of the western Midwest Friday. Severe storm damage and local flooding are possible. Light rain will move across the Delta. Plains areas will be dry with extreme heat stressing crops and livestock in the Southern Plains.
| Rural Advocate News | Thursday June 4, 2020 |
Nutrition Coalition Urges Delay, Review of Dietary Guidelines The Nutrition Coalition alleges there is a serious threat to the integrity and trustworthiness of the nation's federal nutrition policy. The coalition Wednesday released allegations made by one or more members of the Dietary Guidelines Advisory Committee, under the direction of the Department of Agriculture. The coalition expressed concerns about the committee's process and in particular, its review of the scientific studies underpinning what will be the next version of the Dietary Guidelines for Americans, due out at the end of this year. The guidelines are issued only once every five years. The allegations range from deleting scientific reviews without public notice to failing to adopt reforms mandated by the National Academies of Sciences, Engineering, and Medicine. The coalition claims USDA needs more time to develop the guidelines and consider more scientific evidence and reviews. Nutrition Coalition Executive Director Nina Teicholz (Ty-shulls) says, “The American people deserve trustworthy nutrition policy based on a comprehensive review of the most rigorous science.” ************************************************************************************ Lawmakers Call on Secretary Perdue to Provide Answers for Wisconsin’s Dairyland Federal Lawmakers from Wisconsin seek answers from Agriculture Secretary Sonny Perdue for dairy farmers. In a letter this week, four legislators from Wisconsin asked how contracts are awarded through the Department of Agriculture’s Farmers to Families Food Box Program. In May, USDA announced it was awarding $1.2 billion in contracts out of the $3 billion program, which is meant to support farmers struggling with food supply chain disruptions by purchasing agricultural products to distribute to those in need. However, the lawmakers say USDA has released few details regarding the awardees and the process used to determine which companies receive contracts. Wisconsin, one of the nation's top dairy-producing states and home to well-established dairy producers, processors, and distributors, has received less than one percent of the contracts made for dairy products through the program. Representative Ron Kind, a Wisconsin Democrat, says, “Our dairy farmers are the heart of our rural communities, and they deserve additional clarity and more support from USDA.” ************************************************************************************ Iowa Leaders Call On USDA to Provide CFAP Funds for Egg Producers Iowa leaders want the Department of Agriculture to include egg producers in the Coronavirus Food Assistance Program, known as CFAP. Both Senators from Iowa, Republicans Chuck Grassley and Joni Ernst, Along with Iowa Governor Kim Reynolds and Iowa Agriculture Secretary Mike Naig, sent the request in a letter to Agriculture Secretary Sonny Perdue. With nearly 70 percent of Iowa’s layer flocks producing for the liquid egg market, the COVID-19 market disruption has proved to be devastating to Iowa’s egg producers. Egg producers lost markets due to the closing of restaurants, schools and other egg buying businesses during the COVID-19 pandemic, as the liquid egg market saw a 68 percent price decline. Senator Ernst says, “These hardworking folks need relief and assistance, and that's what we're fighting for and pushing USDA to provide.” Iowa is home to more than 58 million egg-laying hens and about one in six eggs consumed in the United States each year. ************************************************************************************ Solid Rebound Expected for Sugarbeet Industry Sugarbeet growers and cooperatives in the U.S. are expected to have a stronger financial year ahead, according to a new report by CoBank. The report says growers should see improved production and high prices for the 2020-2021 crop. Many growers and processors suffered through significant financial strains due to extreme weather, market uncertainty and severe crop production losses that plagued the 2019-2020 marketing year. The U.S. sugarbeet harvest last fall marked the fifth biggest year-over-year decline on record, dropping 14 percent to 28.6 million short tons. Total acreage planted this spring is expected to increase over last year and drive production higher. USDA is currently predicting the 2020-21 sugarbeet crop harvest to increase 18 percent, at 33.7 million short tons. With demand remaining strong and refined sugar supplies tightening, the price of Wholesale Refined Beet Sugar has surged to 44 cents per pound, up from 35 cents per pound last fall and the highest since 2012. Raw sugar prices, though, have held steady at around 25 to 27 cents per pound for over the past two years. ************************************************************************************ New Tool Helps Great lakes Area Farmers Prevent Runoff American Farmland Trust and its partners have developed a new model to reduce nutrient and soil sediment runoff on leased farmland in the Great Lakes region. By engaging landowners, their operators and farm retailers, the partnership is expanding the use of conservation practices to improve soil health and reduce runoff in the Great Lakes Basin. The “Landowners and Farmers Partnering for Clean Water in the Great Lakes” model is built around three strategies, engaging women landowners through “learning circles,” organizing workshops for farm operators who lease their land, and gathering knowledge from agricultural retailers and crop consultants. The group says farmers who lease the land they farm do not have as many incentives to use conservation practices as do farmers who own the land they farm. In the Great Lakes region, up to 49 percent of the farmland is leased. A significant share of leased farmland is owned by women, a traditionally underserved sector in agriculture, and a sector that is expected to increase. The toolkits are available on American Farmland Trust’s website. ************************************************************************************ Case IH Donates Tractors to Three Trade Schools Case IH recently donated tractors to three technical schools to give students hands-on learning with new equipment. The tractors were donated to Parkland Community College in Champaign, Illinois, North Dakota State College of Science in Wahpeton, North Dakota, and Lake Area Technical Institute in Watertown, South Dakota. Each received one donated tractor. The tractors will be used as training aids for diesel technology programs to benefit students' education. Each school that received a donated tractor is partnered with a local Case IH dealer and has a program to train students to repair agriculture equipment. The tractor models that were donated, a Puma 170, Optum 270 and Optum 300, have a retail value of more than $500,000 in total. Darrel Woolery, agriculture department supervisor at Lake Area Technical Institute, said the Optum 300 tractor they received will be used to teach across multiple programs, and it will serve as a learning tool both in the classroom and in the field.
| Rural Advocate News | Thursday June 4, 2020 |
Washington Insider: The Stock Market as Economic Indicator The New York Times recently has undertaken to explain the “disconnect” between the U.S. economy and the stock market. It observes that after a few weeks of “wild swings” the market is down a mere 9.3% this year and 13.5% from its peak, which most investors would consider a correction. Last Friday, after the release of “staggering” unemployment figures, the S&P 500 closed up 1.7%. Conventional wisdom is that markets tend to be forward-looking and investors have already accounted for the expected drop in second-quarter activity – and the expectations are for a relatively rapid economic recovery afterward. Also, the Fed’s actions have bolstered investors’ confidence that the bottom “won’t fall out of the market.” However, the Times focuses on “deeper reasons," including the market’s longer-term detachment from the mainstream of American life. “Wall Street has very little to do with Main Street,” said Joachim Klement, a market analyst at Liberum Capital in London,” said. “And that link is less and less important.” Still, the market retains its grip on the collective imagination. From politicians and corporate executives to mom-and-pop investors, Americans have long relied on the stock market as a proxy for the U.S. economy for reasons that are partly historical. Its crests suggested bright days ahead, while its troughs suggested a darkening outlook. However, the current “economic fallout” could snap the “illusions” that the logic of the market is derived, in any consistent way, from real-world events. Part of the reason is the makeup of the market itself the Times says – and the fact that the giant companies that make up the S&P 500, for example, reflect very different circumstances than the nation’s small businesses, workers and cities and states. They are highly profitable, hold significant sums of cash and have regular access to public bond markets. They’re far more global than the typical American family firm and earn about 40 percent of their revenues from sales abroad. In 2015, about 600,000 U.S. companies counted at least 20 employees, and only 3,600 of those – or less than 1% – were publicly listed, said Rene Stulz, a professor of finance at Ohio State University, who has studied the changing composition of publicly traded markets. Because the financial strength of big companies makes them more likely to survive the downturn, their share prices tend to underplay the impact of widespread economic trends. In fact, market indexes like the S&P 500 are weighted to reflect the performance of the largest and most profitable companies. In recent weeks, the stocks of such companies have not only veered in the opposite direction from the outlook for the U.S. economy, but from the rest of the stock market itself. The five largest listed companies – Microsoft, Apple, Amazon, Alphabet and Facebook – have continued to climb this year, as investors bet they will emerge in an even more dominant position after the crisis. Through the end of April, they were up roughly 10% this year, while the 495 other companies in the S&P were down 13%, according to Goldman Sachs analysts. Several of these highly valued firms, including Microsoft, Amazon and Apple are each worth more than $1 trillion and now account for one-fifth of the market value of the index, the highest level in 30 years. “It’s very easy to get confused by looking at the S&P doing well and that being driven by a relatively small subset of firms which aren’t really affected by this virus – or actually gain from it,” Stulz said. In addition, the mood of the market does not necessarily reflect the sentiment of a broad swath of Americans, the Times says. While more than half of American households own shares or investment funds, the overwhelming majority of those accounts are modest. Instead, stock ownership is heavily skewed to the richest segments of the population who are least likely to feel the pain of an economic downturn. “Stock ownership among the middle class is pretty minimal,” Ed Wolff, an economist at New York University who studies the net worth of American families, told the Times. In fact, a relatively small number of wealthy families own the vast majority of the shares controlled by U.S. households. The wealthiest 10% of households own 84% of all household stock value with 40% of the value held by the top 1%. In addition, there’s relatively little evidence that economic growth matters to the “outcome of the market at all,” according to Jay Ritter, a finance professor at the University of Florida who has studied the long-run relationship between economic growth and market returns. “In the longer run, the relationship is, empirically, it’s not there.” None of this is a secret. So why do millions of Americans continue to think the market really is a barometer on the economy? The Times ducks the question, but it remains an important aspect of the economy and should be watched and evaluated carefully as the economy struggles to recover, Washington Insider believes.
| Rural Advocate News | Thursday June 4, 2020 |
OSHA, CDC Issue Updated Guidance For Ag Workers The Occupational Safety and Health Administration (OSHA) and the Centers for Disease Control and Prevention (CDC) have issued updated interim guidance for actions to protect agriculture workers from coronavirus exposure. The guidance recommends that work site assessments be conducted, workers should be screened for symptoms, plastic barriers should be installed when distances of six feet between individuals are not possible and workers should be encouraged to use cloth face coverings in certain circumstances. The guidance also calls for work sites to coordinate directly with appropriate state and local public health officials in development of plans to continue operations where COVID-19 is spreading among workers or in the surrounding community.
| Rural Advocate News | Thursday June 4, 2020 |
Iowa Officials Push For Liquid Eggs To Be Included In CFAP USDA is being asked to include liquid eggs as a commodity covered under the Coronavirus Food Assistance (CFAP) program by Iowa Gov. Kim Reynolds, Secretary of Agriculture Mike Naig, Sen. Chuck Grassley and Sen. Joni Ernst. “With nearly 70% of the Iowa’s layer flocks producing for the liquid egg market, the COVID-19 disruption has proved to be devastating,” the officials said in the letter to USDA Secretary Sonny Perdue. “These market conditions warrant liquid egg producers for inclusion in the CFAP.” The officials pointed to USDA pricing data showing the prices for liquid eggs declined 68.7% over the period covered by CFAP, far more than the 5% threshold set by USDA for CFAP eligibility. They noted the liquid egg market is distinct from the shell egg market where prices rose over the period covered by CFAP.
| Rural Advocate News | Thursday June 4, 2020 |
Thursday Watch List Markets Thursday morning will be busy with USDA's weekly export sales report, U.S. jobless claims, the U.S. trade deficit and an update of the U.S. Drought Monitor all arriving at 7:30 a.m. CDT. At 9:30 a.m., the U.S. Energy Department will release natural gas inventory and later Thursday morning, USDA will provide April export data for ag products. Weather and any trade news will also be watched. Weather Thursday features moderate to locally heavy rain for the southern Midwest and mostly light rain in the Delta. We’ll also see scattered thunderstorms in the Northern Plains. Other crop areas will be dry. Stressful heat will again cover the central and Southern Plains.
| Rural Advocate News | Wednesday June 3, 2020 |
Ag Economy Barometer Shows Slight Improvement in May After a sharp drop in March and April, farmer sentiment in May improved slightly. The Purdue University/CME Group Ag Economy Barometer rose to 103, seven points higher than April. However, the index remained almost 40 points below its all-time high of 168 that was set in February of this year. The people behind this month’s barometer say the survey was conducted the same week that USDA announced the details of the Coronavirus Food Assistance Program, so the program details could be one of the key reasons for this month’s improvement in the barometer. The Index of Current Conditions climbed 11 points higher from April to May, coming in at 83. The Index of Future Expectations rose four points to a reading of 112. Farmers seem to be thinking of making investments in their operations, with the Farm Capital Investment Index rising to 50 in May, 12 points higher than in April. More than 70 percent of respondents said they were “very worried” (34 percent) or “fairly worried” (37 percent) about the impact of coronavirus on their farm’s profitability. There’s even more evidence that farmers are concerned about finances as two-thirds of the respondents indicated they think it will be necessary for Congress to pass another bill to provide more economic assistance to U.S. farmers. ********************************************************************************************** Brazil Meatpackers Now Struggling with Coronavirus Brazil, the world’s biggest beef and chicken exporter and the fourth-largest pork exporter, is now struggling with coronavirus in its meatpacking industry. Over 25 percent of the confirmed coronavirus cases in Brazil’s state of Rio Grande (GRAHN-day) do Sul are among workers in meat plants. Meatpackers in the state employ 50,000 people. A statement from Brazil’s labor prosecutor says an estimated 2,399 employees from 24 slaughterhouses in 18 municipalities of the state are now confirmed. That’s a total of 25.7 percent of the 9,332 cases of confirmed coronavirus. Reuters says the findings corroborate the evidence that meatpackers have become hotspots in Brazil for the coronavirus. Brazil has more than half-a-million cases and nearly 30,000 deaths. Two of Brazil’s largest meatpackers own plants in Rio Grande do Sul and both of them had to temporarily close their units due to outbreaks of coronavirus. Around Brazil, the average number of workers per plant is approximately 2,000. Brazil’s agriculture ministry says the country has 446 meat plants, including 194 beef, 148 poultry, 90 pork plants, and 14 that process other types of meats. ********************************************************************************************** China Companies Buying Ag Products Despite Government Order to Desist Tensions are rising once again between the U.S. and Hong Kong, which in turn led the Chinese government to order state-run agricultural firms to temporarily stop buying U.S. commodities, including corn, soybeans, and cotton. Several buyers specifically canceled pork orders. Despite the government mandate, state-owned companies still purchased 180,000 metric tons of U.S. soybeans on Monday, with shipments due in the fall. Politico says U.S. traders note that Chinese importers still haven’t covered a large share of their October and November soybean needs. China was supposed to buy at least $36.5 billion in U.S. ag products this year under the phase one trade agreement. “Phase One always was on weak legs and now we’re seeing that,” says Scott Kennedy, senior adviser at the Center for Strategic and International Studies. “If President Trump walks away from the deal, that will make it harder for American farmers and others in the Midwest to count on exports to fuel their recovery from the coronavirus pandemic.” Kennedy also says the apparent ag import freeze could be linked to Trump’s threats to remove Hong Kong’s privileged trade status. ********************************************************************************************** Rebound Year Ahead for U.S. Sugarbeets Sugarbeet growers and U.S. cooperatives are expected to have a stronger financial year ahead, thanks to improved production and higher crop prices predicted for 2020-2021. A CoBank report says that should help usher in a potential recovery from a stressful growing season last year. The report from CoBank’s Knowledge and Exchange Division details the market forces and production dynamics that suggest the sugar industry is in for a rebound as consumer demand for sugar remains high. “Assuming we return to reasonably normal harvest weather this fall, expectations are for a much bigger crop to be harvested for the 2020-2021 season,” says Tanner Ehmke, manager of CoBank’s Knowledge Exchange. “With processors contracting refined sugar at much-higher prices, fortunes are expected to turn favorable for growers and processors in the marketing year ahead.” Last fall, the U.S. sugarbeet harvest marked the fifth-biggest year-over-year decline on record, dropping 14 percent to 28.6 million short tons. Production in three of the biggest sugar-producing states of Minnesota, North Dakota, and Nebraska, fell by more than 20 percent in 2019. Abandonment rates were the highest in the U.S. since the Great Depression as 13.5 percent of planted acres weren’t harvested because of wet weather issues. ********************************************************************************************** Retail Dairy Sales Higher During COVID-19 Pandemic Monday was celebrated as National Milk day, with the National Milk Producers Federation sharing some good news with the beleaguered U.S. dairy industry. “From March 8 to March 22, as stay-at-home orders and business closures proliferated around the country, dairy products flew off store shelves,” the group said in an announcement. “Milk sales were 43 percent higher than during the same period a year ago, while yogurt rose 31 percent, ice cream sales gained 40 percent, and cheese sales also climbed 76 percent.” The NMPF says butter sales more than doubled during the same period. However, the federation also points out that, “Pre-coronavirus, about half of all dairy sales came from outside the home. Even as retail consumers increased dairy buying, sales to restaurants, schools, and cafeterias dropped sharply. That price turbulence led to sharp declines in the USDA’s milk price forecast for 2020.” The organization says that’s a big reason why federal assistance for dairy farms has been so important.
| Rural Advocate News | Wednesday June 3, 2020 |
Washington Insider: Fight Over Next Economic Stimulus Proposals POLITICO is reporting this week that Congress is struggling now over what to do next to support the economy. It observes this is demonstrating that “evidence isn’t everything in Washington.” The report notes that “Congress is once again debating stimulus for a crushed economy as governors are once again confronted with gigantic budget shortfalls." POLITICO thinks that memories of 2009 have faded, and the politics have been “scrambled” under the President Donald Trump's administration, but that “state aid” was used successfully in an earlier recession. POLITICO points out that in January 2009 tax revenues were collapsing and state budgets were hemorrhaging. The new Obama administration was “terrified” that without a massive infusion of cash, governors would tip the recession into a full-blown depression by laying off employees and cutting needed services. A large infusion of direct aid to states was discussed. However, the politics of that 2009 approach were “dismal” POLITICO says. Some leaders were already opposing any stimulusâ??and even Democrats who supported the new president's approach weren’t excited to help Republican governors balance their budgets. The reason, POLITICO says, is that most “politicians enjoy spending money more than they enjoy giving it to other politicians to spend.” And since the direct state aid approach was “untried,” the proposal was seen as “more hunch-based than evidence-based.” Ultimately, the Congress approved $140 billion in state aidâ??only two-thirds of the administration’s original request but far more than any previous stimulus. Still, POLITICO sees evidence that the state bailouts worked. It points to “at least a dozen post-recession studies that found state fiscal aid gave a significant boost to the economy.” POLITICO adds that several studies concluded that “more state aid would have produced a stronger recovery.” Now, a similar fight is underway. Democratic leaders have made state aid a top priority and $150 billion has already been provided for state, local and tribal governments in the CARES Act that Congress passed in March. The next battle is over the additional $915 billion in the HEROES Act that the House passed in May. Republican leaders accepted the fiscal relief in the March bill but they kept it out of the last round of stimulus that Congress enacted in April. The also have declared the HEROES Act dead on arrival. Though they’re no longer denouncing stimulus as socialism, as they did in the past, they’ve begun attacking state aid as a “blue-state bailout.” POLITICO says that most voters tell pollsters that they want Congress to help states avoid layoffs of teachers, police officers and public health workers. Still, key leaders like Senate Majority Leader Mitch McConnell and other influential Republicans are trying to “reframe state aid as Big Government Democratic welfare spending.” “There wasn’t a lot of evidence that state aid would be a good stimulus in 2009, but now there’s a lot of data, and it all adds up to juice for the economy,” Moody’s chief economist Mark Zandi says. “It’s baffling that this is getting caught up in politics. If states don’t get the support they need soon, they’ll eliminate millions of jobs and cut spending at the worst possible time.” The coronavirus is ravaging state budgets even faster than the Great Recession did, drying up revenue from sales taxes and income taxes while ratcheting up demand for health and unemployment benefits. And, as Senator Mitt Romney, R-Utah, pointed out earlier this month, “Blue states aren’t the only ones who are getting screwed.” The Republican governors of Texas, Georgia and Ohio have also directed state agencies to prepare draconian spending cuts to close massive budget gaps, he noted. POLITICO notes that “fiscal experts” say the assertions that irresponsible states brought these problems on themselves with unbalanced budgets and out-of-control spending has little basis in reality. Unlike the federal government, which was running a trillion-dollar deficit even before the pandemic, every state except Vermont is required by law to balance its budget every year. State finances were unusually healthy before the crisis hit; overall, they had reserved 7.6% of their budgets in rainy day funds, up from 5% before the Great Recession. But now, governors of both parties are pivoting to austerity and more public employees are applying for unemployment benefits, meaning fewer state and local services in a time of need and fewer dollars circulating in the economy as it begins to reopen. Federal Reserve Chairman Jerome Powell, who has approved a plan to buy up to $500 billion worth of state and local government bonds to help ease their money problems, recently suggested that direct federal aid to states also “deserves a careful look,” which in Fed-speak qualifies as a desperate plea for congressional action. So, we will see. The state aid fight is intense, increasingly bitter and likely to be prolonged. It involves high stakes and clearly should be watched closely by producers as the election season progresses, Washington Insider believes.
| Rural Advocate News | Wednesday June 3, 2020 |
Additional Meetings on Tap Over EPA RFS Proposal There are six meetings scheduled so far at the Office of Management and Budget (OMB) on EPA’s proposed levels for 2021 biofuel and 2022 biodiesel under the Renewable Fuel Standard (RFS). The latest session scheduled is with is representatives from the Society of Independent Gasoline Marketers of America and National Associations of Convenience Stores. Missing so far from the list are the Renewable Fuels Association (RFA) and several other groups that represent biofuel interests.
| Rural Advocate News | Wednesday June 3, 2020 |
Wednesday Watch List Markets Wednesday's reports start with ADP private employment at 7:15 a.m. CDT, an early hint of Friday's unemployment report. The U.S. Energy Department's weekly inventory report follows at 9:30 a.m. and will include ethanol production. Traders will be watching for any confirmation of trade rumors, especially from China, as well as the latest weather forecasts. Weather A summer pattern with very warm to hot conditions will cover most primary crop areas Wednesday. Some shower and thunderstorm formation will be noted in parts of the Midwest and Delta.
| Rural Advocate News | Wednesday June 3, 2020 |
Refinery Part of RFS Exemption Case To Shift To Biodiesel HollyFrontier announced they will convert their refinery in Cheyenne, Wyoming, to produce renewable biodiesel, one of the plants at the center of the 10th Circuit Court case in which the court ruled a small refinery exemptions (SRE) granted for the 2016 compliance year was invalid. The company said it would spend between $125 million and $175 million to convert the facility to produce around 90 million gallons of renewable diesel per year. Completion is targeted for the first quarter of 2022. The company said it would halt petroleum refining at the site and would reduce its workforce. “This decision was primarily based on the expectation that future free cash flow generation in Cheyenne would be challenged due to lower gross margins resulting from the economic impact of the COVID-19 pandemic and compressed crude differentials resulting from dislocations in the crude oil market, coupled with forecasted uncompetitive operating and maintenance costs and the anticipated loss of the Environmental Protection Agency’s small refinery exemption,” the company stated. This certainly indicates that the firm will not be pursuing a challenge to the court ruling, keeping attention on EPA and how they intend to address the ruling.
| Rural Advocate News | Tuesday June 2, 2020 |
China Halts Some Purchases of U.S. Ag Products China is halting imports of some U.S. agricultural products through state-run agricultural companies. The move comes as a response to tensions between the U.S. and China regarding Honk Kong. Bloomberg News reports state-owned traders Cofco and Sinograin were ordered to suspend purchases. The action is the latest by China, which puts a trade agreement full of wins for U.S. agriculture in jeopardy. Last week, President Donald Trump threatened to punish China for its relations with Hong Kong. China responded by pausing purchases of U.S. ag products, including recent inquiries to purchase U.S. soybeans. A China Foreign Affairs spokesperson says of Trump’s comments, “the measures announced gravely interfere with China's internal affairs and undermine bilateral relations and will be detrimental to both sides.” However, the retaliation is likely temporary, as China will need more soybeans and pork, among other products. China was increasing purchases of U.S. ag products as the nation reopens following the coronavirus pandemic, but at a slower than expected pace to fulfill the Phase One trade agreement. ************************************************************************************ USDA Lowers Ag Export Outlook The Department of Agriculture last week lowered its export forecast for fiscal year 2020. USDA’s Economic Research Service says the COVID-19 outbreak has created a shock to world economies that will cause an unusually high level of uncertainty for the foreseeable future. ERS projects 2020 agricultural exports at $136.5 billion, down $3.0 billion from the February forecast, primarily due to reductions in bulk commodities. Projections for soybean exports were reduced $1.9 billion to $16.5 billion due in part to increasingly competitive Brazilian exports. Cotton exports are forecast down $1.0 billion on lower volumes and value as the COVID-19 pandemic has reduced foreign demand. Corn exports were projected at $8.0 billion, down $500 million, pressured by ample exportable supplies and weak domestic use for fuel ethanol. The forecast for wheat exports is down $300 million to $6.1 billion. And, livestock, poultry and dairy exports are unchanged from the February projection of $32.4 billion. The forecast doesn’t take into account the recent news of China halting some purchases of U.S. agricultural products. ************************************************************************************ USDA Launches 2020 Feds Feed Families Nationwide Food Drive The Department of Agriculture Monday kicked off the 11th annual government-wide Feds Feed Families campaign. The effort encourages employees from all federal departments and agencies to give in-kind contributions, food, services and time, to food banks and pantries. This year’s campaign highlights a summer of giving in June and July, along with seasonal reminders to donate throughout the year. Agriculture Secretary Sonny Perdue says, “Our USDA family has the most dedicated employees in the federal government and this campaign is our chance to help feed those in need.” The 2020 campaign focuses on online donations and virtual food drives, while also providing guidance for in-person donations and events as appropriate. The 2020 Food Drive focuses on healthy, nutritious foods. Participants may collect nonperishable foods and fresh foods, as appropriate for each food bank. Since Feds Feed Families launched in 2009, this campaign has collected more than 92 million pounds of food for donation. In 2019 alone, federal employees donated more than 2.8 million pounds. ************************************************************************************ Representative Seeks Expanded Online SNAP Purchases One lawmaker wants more online access for Supplemental Nutrition Assistance Program participants to purchase groceries online. U.S. Representative Sanford Bishop, a Democrat from Georgia, says he is “concerned with the lack of approved retailers nationwide.” The Department of Agriculture recently announced that 37 states will be able to use SNAP benefits to buy groceries online. However, the number of approved retailers is limited. While the number of states participating is increasing, Bishop says the vendors remain primarily in the northeastern area of the United States. Currently, only seven retailers have been approved to provide online purchasing service, limiting access for SNAP participants to purchase groceries online. Bishop says, “It is imperative USDA expands the list of approved grocers, particularly in rural communities.” His comments were included in a letter sent to Agriculture Secretary Sonny Perdue last week. Bishop also urged Secretary Perdue to consider ways to help SNAP participants avoid any fees associated with online grocery shopping. ************************************************************************************ Corteva Agriscience Announces 2030 Sustainability Goals to Increase Agricultural Resiliency Corteva Agriscience announced Monday its ten-year commitments to advance sustainability throughout the global food system. The goals span a wide range of initiatives for farmers, farmland, communities, and in its own operations. Improvements in soil health, on-farm productivity, climate action, water stewardship, biodiversity, supply chain transparency and worker safety, among others, are included. Corteva CEO James Collins, Jr. says, “Our mission to lead the entire agriculture industry toward better, more sustainable outcomes across the world is more important now than ever.” Corteva’s commitments will provide tools and training to help increase yield stability, optimize inputs and improve climate resilience. Commitments to soil health, water stewardship and biodiversity are also included. Corteva’s goals will champion and protect employees and people throughout the food system and the broader agriculture community. Within their business operations, the company is pledging to innovate sustainably, establish a climate strategy, use sustainable packaging, and increase their work sites’ sustainability efforts. Corteva will report progress toward these goals through an annual sustainability report starting in 2021. ************************************************************************************ Fuel Demand Continues Recovery National gas prices rose again last week, gaining seven cents per gallon to reach $1.97. Demand continues to recover from the pandemic and stay at home orders this spring and provides some optimism to the recovery ethanol demand. However, GasBuddy reports the average price of diesel last week fell one cent to $2.49 a gallon. And, Patrick DeHaan of GasBuddy says, “The pace of increases has begun to throttle back over the last week in most states as gasoline demand’s recovery has slowed.” While crude oil prices continued their upward move over the last week, it has been a much slower rise than recent weeks. As the global economy continues a slow recovery and more countries ease up on travel restrictions, demand for oil has rebounded as supply remains lower due to the coronavirus curbing demand. U.S. oil inventories saw a large 7.9 million barrel boost in last week’s data from the Energy Information Administration, while gasoline inventories fell again by some 700,000 barrels and distillate inventories jumped 5.5 million barrels.
| Rural Advocate News | Tuesday June 2, 2020 |
Washington Insider: China Steps Back on Trade Bloomberg is reporting this week that Chinese government officials recently told major state-run agricultural companies to pause purchases of some American farm goods, including soybeans, as Beijing evaluates the ongoing escalation of tensions with the U.S. over Hong Kong. For example, state-owned traders Cofco and Sinograin were ordered to suspend purchases, Bloomberg said, citing sources in China. Chinese buyers have also canceled an unspecified number of U.S. pork orders. However, Bloomberg also noted that private companies haven’t been told to halt imports. Reuters also reported a similar development. However, Reuters reported later in the day that China’s state-owned grain buyers had bought some U.S. soybeans out of the Pacific Northwest for October-November delivery, more than raising questions about the accuracy of the reports on the purchase pause. The possible halt is the latest sign that the hard won Phase One trade deal between the world’s two biggest economies is in jeopardy. While Chinese Premier Li Keqiang last week reiterated a pledge to implement the agreement that was signed in January, tensions have continued to escalate since then amid a standoff over Beijing’s move to tighten its grip on Hong Kong. Beijing’s policy shift eroded the “risk-on” sentiment that had been prevailing over markets, Bloomberg said. The S&P 500 Index was little changed in recent days, while soybean futures in Chicago gained 0.4% after falling as much as 0.8% earlier. Shares of Archer-Daniels-Midland Co. were down 1.7% at $38.64. “The market has already seen the deteriorating relationship between the China and the U.S. and many think that with the slow progress of Chinese commodity buying so far, the trade deal’s future was already in jeopardy,” said Michael McDougall, a managing director at Paragon Global Markets in New York. Chinese steps to halt imports come after President Donald Trump on Friday lobbed “a barrage of criticism at Beijing after it moved to impose controversial new national security legislation on Hong Kong.” Critics say it will crack down on dissent and undermine the “one country, two systems” principle that has kept Hong Kong autonomous of the mainland since the 1997 handover from the British. Cofco and Sinograin are China’s key importers of farm goods. They had been making pricing inquiries for 20 to 30 cargoes of U.S. soybeans on Friday but held off on going through with purchases after the U.S. administration indicated it would punish Chinese officials, Bloomberg said. Beijing is waiting to see what steps President Donald Trump takes before deciding its next move. Trump said the U.S. would begin the process of stripping some of Hong Kong’s privileged trade status, without detailing how many changes would take effect and how many exemptions would apply. Nor did he signal how long that process would take. He also promised sanctions against Chinese and Hong Kong officials “directly or indirectly involved” in eroding Hong Kong’s autonomy, though stopped short of giving specifics. Equity investors had reacted positively to the president’s remarks, as he didn’t provide any details or timeframe for what actions might come next. And the actions were far less onerous than many apparently had feared. It’s unclear how soon the U.S. would move on a range of options that could include sanctioning Chinese officials to imposing tariffs on Hong Kong to attacking the territory’s financial stability, Bloomberg said. While the administration has periodically threatened to call off the “Phase One” trade deal, the top U.S. economic advisers have suggested that deal “would continue in force.” Larry Kudlow, director of the National Economic Council, told the press on Thursday that the trade agreement “does continue to go on for the moment and we may be making progress there.” The two sides have traded blows over a range of issues from the coronavirus to Taiwan in recent weeks, and China’s Foreign Minister Wang Yi warned during high-profile legislative meetings in Beijing that some in America were pushing relations to a “new Cold War,” and urged the U.S. to give up its “wishful thinking” of changing China. China had agreed to buy U.S. farm goods worth about $36.5 billion for 2020 as part of the Phase One trade deal that went into effect in February. However, the coronavirus outbreak roiled those plans, with China only managing to import $3.35 billion in American agricultural products in the first three months of the year, the lowest for that period since 2007, according to USDA. Still, as China started to gradually reopen its economy from the virus-led lockdown, it had increased its pace of imports, including a more-than 1-million metric tons of American soybeans in just two weeks in May and rare purchases of U.S. soybean oil and ethanol. But then tensions between the U.S. and China began escalating, with Trump blaming the Asian nation for misleading the world about the scale and risk of the coronavirus outbreak. The fallout filtered through to the commodities markets, with China opting to buy Brazilian soy instead of American beans. So, we will see. Since this is an election year, it is possible that the U.S. will make some sort of overt move to revive the trade commitments. That same logic ups the ante on pushing back on issues with China, especially those centered on Hong Kong. Clearly, these are issues producers should watch closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Tuesday June 2, 2020 |
NPPC Calls on Senate to Adopt House Aid Provision The National Pork Producers Council (NPPC) is calling on the Senate to include the provisions on direct payments to producers forced to euthanize livestock that were part of the Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act). The House passed legislation includes provisions for additional direct payments to producers and compensation for euthanized livestock, which NPPC President Howard AV Roth called “a lifeline” for farmers. He also spoke favorably about animal health laboratory funding and mental health provisions included in the bill. As Congress works on the next COVID-19 relief package, NPPC is “encouraging the Senate to adopt these [House] provisions in companion legislation, with all due haste, and to work with the House to deliver much needed additional relief to American farmers,” Roth said. Without further aid “we will see thousands of hog farmers liquidate their family farms, resulting in a contracted and more consolidated industry,” he added, saying that result would be bad for both farmers and consumers.
| Rural Advocate News | Tuesday June 2, 2020 |
USDA Cuts FY 2020 Export, Import Forecasts on COVID-19 Impacts U.S. agricultural exports in Fiscal Year (FY) 2020 are now expected to be valued at $136.5 billion, down from $139.5 billion in February, while the value of imports is now seen at $130.2 billion, down from $132.5 billion. The economic impacts from the COVID-19 situation were flagged for the downward revisions to the outlook. The outlook would leave a trade surplus of $6.3 billion. The COVID-19 situation is hitting with a one-two punch, the Economic Research Service (ERS) said, “damaging the ability of individuals and firms to produce goods and services while simultaneously changing the consumption behavior of consumers and businesses across the globe.” Global real per capita GDP growth is seen declining by 5.5% compared to 2019 with the U.S. result now expected at a decline of 7.1%. Their prior outlook was for expansion of 1.1%, which means the downgrade translates in reduction of $1.8 trillion in economic activity. USDA will update its trade data Thursday with April figures.
| Rural Advocate News | Tuesday June 2, 2020 |
Tuesday Watch List Markets There are no official reports on Tuesday's docket, but traders will be watching for a possible soybean export sale announcement after rumors circulated Monday. The latest weather forecasts will be of interest and after Monday's confusing experience, it wouldn't be surprising to find other rumors develop, concerning China. Weather Dry with very warm to hot conditions will cover most crop areas Tuesday. Precipitation will be confined to light rain crossing the northern Midwest. Heat and sunlight will generally favor crop progress, with adequate to surplus soil moisture in many areas.
| Rural Advocate News | Monday June 1, 2020 |
NPPC Asks Senate to Pass Ag Provisions in HEROES Act The National Pork Producers Council is asking the Senate to adopt the agricultural provisions in the HEROES Act that was recently passed by the House. Howard “A.V.” Roth (Rowth), NPPC President, says they’re asking the Senate to make the move as quickly as possible. “All pork producers are hurting, and immediate action is necessary,” Roth says. “We need the Senate to act quickly to provide this critical lifeline to hog producers.” He says without immediate government assistance, family farmers, many of whom have been on their farm for generations, will be bankrupted by the impact of COVID-19. That won’t just hurt the farmers themselves, but instead will destroy the livelihoods of countless communities across rural America. That will directly lead to consolidation and contraction in a farm sector that generates more than 500,000 jobs and $23 billion in personal income. The Hagstrom Report says U.S. hog producers are looking at a potential $5 billion loss this year. That’s even though hog processors are working at a faster pace than they were even a couple of weeks ago. However, there is still a backlog of up to 150,000 hogs every week, and producers are losing about $50 to $60 per hog. ********************************************************************************************** Growth Energy Celebrates the First Anniversary of Year-Round E15 This weekend marked the first anniversary of the Environmental Protection Agency’s final rule that allowed American drivers to purchase ethanol year-round. The rule was issued on May 31 of 2019. It lifted summertime E15 restrictions and represented the culmination of a ten-year campaign that began with Growth Energy’s 2009 “Green Jobs Waiver” petition, which first opened E15 to all model year 2001 or newer light-duty vehicles. “COVID-19 slowed fuel demand in recent months, but the promise of E15 remains stronger than ever as we mark the first anniversary of year-round sales,” says Growth Energy CEO Emily Skor. “This was a landmark victory for our members, congressional champions, retail partners, and consumers across the country who fought by our side to lift outdated barriers to higher-octane, lower-carbon fuel options.” As drivers begin to return to the roads, Skor says E15 is likely poised for rapid growth. In fact, a recent survey shows that 65 percent of American drivers have big plans for extra summer travel once COVID-19 restrictions are lifted. “We already know that customers who try E15 are coming back, again and again, to take advantage of this more affordable and cleaner fuel,” Skor adds. “Last summer alone, E15 sales jumped 46 percent on a per-store basis from the previous year thanks to year-round sales.” ********************************************************************************************** Dairy Management, Inc., Showcasing the Resilience of the U.S. Dairy Industry In celebration of June Dairy Month, Dairy Management, Inc., as well as state and regional checkoff teams across the country, are showcasing dairy’s resilience and community impact during COVID-19. The efforts kicked off on June 1, which is World Milk Day, with a video titled “Raising Gallons.” It features Olympians, NFL players, famous chefs, and others raising a gallon of milk to show their appreciation for dairy farmers while supporting the checkoff’s goal of getting nutritious dairy to food-insecure Americans through its Feeding America partnership. “This pandemic has shown just how essential Feeding America and dairy farmers are to helping feed those in need,” says Marilyn Hershey, a Pennsylvania dairy farmer and DMI Chair. “We’re working toward a common goal and our checkoff strategy of getting dairy into the hands of those who need it wouldn’t be possible without Feeding America and its nationwide network of 200 local food banks.” Additional checkoff-led efforts nationally and locally will promote “30 Days of Dairy” throughout June. Each day of the month will be filled with virtual farm tours and content that celebrates the role dairy plays in people’s lives while illustrating dairy farmers’ resilience and contributions to their communities. The checkoff will promote dairy-centric recipes for summer, with stay-at-home cooking expected to continue as a major activity for many families. The content will be published on DMI’s redesigned website at www.usdairy.com. ********************************************************************************************** U.S. Soy Ready to Meet the Needs of the Global Aquaculture Industry The U.S. Soybean Export Council hosted a global digital conference called “COVID-19 and the Implications to Aquaculture.” It featured almost 900 global customers and soybean industry representatives from 60 countries. The event focused on COVID-19’s impact on global aquaculture production and marketing supply chains. USSEC says as global markets adapt to these times, U.S. soy is ready to meet the needs of the global aquaculture industry. “Our industry has always prioritized innovation and adaptability to better serve our customers and meet the needs within the global seafood industry, and the COVID-19 pandemic is no different,” says USSEC CEO Jim Sutter. “At USSEC, we’ve had an active program in aquaculture for 35 years, with partners ranging from small fish farms in Asia to other large international operations across the globe.” He says no matter who USSEC works with, their top priority is to proudly optimize and demonstrate the value and nutritional benefits of U.S. soy in aquaculture diets. By 2030, USSEC says 62 percent of all seafood produced for human consumption will be a product of aquaculture. With the help of U.S. soy, expanding feed-based aquaculture can address the needs of both supply and demand. ********************************************************************************************** United Fresh says Produce Buying Climbed During COVID-19 United Fresh Produce released its first quarter of 2020 issue of Fresh Facts on Retail report that details the rising number of fresh produce purchases in 2020. The unprecedented rise in food and beverage consumption at home was brought about by shelter-in-place orders issued to slow the spread of the coronavirus. “Those closures have led to consumers drastically restructuring their eating habits, especially increasing their consumption of meals and snacks at home,” says Miriam Wolk, Vice President of Member Services with United Fresh. “Our current and future Fresh Facts reports will help the produce industry in leveraging current consumer behaviors and fresh produce purchasing trends. First-quarter data highlights show that with health as a top concern, consumers continued to buy fresh food with immune-boosting properties, while also supplementing with shelf-stable and frozen food options. Strawberries and raspberries benefited by extending their reach into more U.S. households. Among vegetables, potatoes, tomatoes, and cucumbers were purchased in higher amounts by U.S. consumers. The report also shows a variety of fruits and vegetables continue to influence overall organic growth, presenting many opportunities to innovate and attract health-conscious consumers. ********************************************************************************************** U.S. Ethanol Production Continues to Slowly Rebound Energy Information Administration data recently analyzed by the Renewable Fuels Association shows a rise in ethanol production for the week ending May 22. Production increased by 61,000 barrels a day, a nine percent increase from the previous week. The total production came in at 724,000 barrels a day, equivalent to 30.4 million gallons daily, and was the largest volume since March. That was good news unless it’s compared to the same time in 2019. COVID disruptions have tempered the production rate, which came in just over 31 percent lower than the same week last year. Still, over the past month, the four-week average ethanol production rate rose almost eight percent to 651,000 barrels per day, equivalent to an annualized rate of 9.98 billion gallons. Ethanol stocks continue to drop, even though it’s a slow decline. Stocks thinned out by 1.9 percent, coming in at a 19-week low of 23.2 million barrels. Inventories continue to tighten up in all the major ethanol production areas, except for the Rocky Mountains. Total reserves are still 2.4 percent higher than where the volume was in 2019. The volume of gasoline supplied to the U.S. market, which is considered a measure of implied demand, rebounded by 6.8 percent from the previous week but was still 23 percent lower than the same week last year.
| Rural Advocate News | Monday June 1, 2020 |
Washington Insider: Fed Goes All Out, Approaches Red Lines The New York Times reported this week that Jerome Powell, chair of the Federal Reserve, told a University group last week that “central bankers had seen the need to use their tools to their fullest extent” as coronavirus lockdowns shuttered economies around the globe and caused United States unemployment to soar. “We felt called to do what we could,” Powell commented Friday during a Princeton University webinar. His comments emphasized that the Fed “crossed a lot of red lines that had not been crossed before,” and added that he was comfortable with what the Fed had done given “this is that situation in which you do that and you figure it out afterward.” Powell called attention to the variety of actions the Fed has taken to support the economy: cutting interest rates to near-zero, rolling out unlimited bond purchases to soothe markets and initiating emergency lending programs to keep credit flowing to businesses and state governments. He also noted that several of those efforts “tiptoe into untested territory” for the central bank, including programs that lend to medium-sized businesses, buy corporate bonds and purchase debt from states and large cities. “We work very hard to explain ourselves to the general public,” he said, explaining that the Fed is disclosing information on its lending efforts and discussing them regularly with lawmakers. And, he pointed out that “the programs come at a time of dire need.” Economists are bracing for a deep plunge in economic output in the second quarter -- from April through June -- and most predict only a gradual recovery over the remainder of the year. It could be months or years before output returns to its pre-crisis level, and the unemployment rate falls to the 50-year lows that prevailed before the coronavirus lockdowns precipitated a wave of layoffs, NYT said. More than 40 million people, about one of every four American workers, have filed for unemployment benefits since mid-March, based on recent data. A report next Friday is expected to show that the unemployment rate jumped to 19.5% in May based on the median estimate in a Bloomberg survey of economists. Powell also noted that the “burdens” of job losses are falling on those least able to bear them, in lower-paid service work, exacerbating economic inequalities. “Those are the people being laid off, who have the least financial resources,” he said. “It’s falling on women to an extraordinary degree,” and “there’s tremendous inequality” in how the pandemic is affecting the population. He also voiced concern that if a second round of virus infections hits America, it could lead to a more delayed economic rebound. “A second wave would really undermine public confidence and might make for a significantly longer and weaker recovery,” he said, after explaining that “a full recovery of the economy will really depend on people being confident that it’s safe to go out.” States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, “it’s still a good idea to limit trips outside and your interaction with other people.” While Powell stressed the Fed’s willingness to act when it comes to emergency lending, he reiterated that the central bank is not looking to cut interest rates into negative territory, something central banks abroad have done in an effort to stimulate their economies. Powell has frequently warned that the United States is experiencing an economic hit “without modern precedent,” one that could permanently damage the economy if Congress and the White House do not provide sufficient financial support. For example, in mid-May he warned as discussions of additional rescue measures ran aground as Democrats proposed sweeping new programs and Republicans voiced concerns over the swelling federal budget deficit. “There is a sense, a growing sense I think, that the recovery will come more slowly than we would like. “While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks.” So, we will see. Given all the uncertainties that now abound, the hoped-for recovery likely is at least as fragile as the Fed believes it to be and the national debate over emergency economic policies should be watched closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Monday June 1, 2020 |
Updated OSHA Guidance For Meat Plants The Occupational Safety and Health Administration (OSHA) last week issued an updated guidance memo relative to reporting of COVID-19 cases. The agency said COVID-19 can be a “recordable illness” if the worker infection was “as a result of performing their work-related duties,” if the following apply: The case is a confirmed case of COVID-19, as defined by the Centers for Disease Control and Prevention (CDC); the case is work-related as defined by law; and the case involves one or more of the general recording criteria set forth by law. The agency also noted that it is exercising “enforcement discretion” relative to the situation, a reference made more than once in the updated guidance. “Recording a COVID-19 illness does not, of itself, mean that the employer has violated any OSHA standard,” the agency stated. The updated guidance is sparking concern within the meat industry about the impact it could have, but it is not clear what specific impacts to things like insurance.
| Rural Advocate News | Monday June 1, 2020 |
USDA Clarifies What Determines Price Risk on Unsold Inventory The Farm Service Agency (FSA) has issued some information clarifying what are eligible contracts that leave price risk open for producers under the Coronavirus Food Assistance Program (CFAP) and what tools constitute removing price risk. Those deemed contracts that leave open price risk include: basis contracts, basis fixed contracts, delayed price contracts, deferred price contracts, and contracts where no price is established. Those where price risk is removed (and are considered ineligible contracts) include: cash contracts, fixed price contract, forward price contract, cash forward contract, minimum price contract, hedge to arrive contract, window contract, option contract, futures fixed contract and a futures contract. The above list applies to contracts entered into on or before January 15. USDA’s CFAP handbook provides several examples of forward contracts that are eligible, but do not provide the breadth of examples the agency considers as eligible or ineligible contracts.
| Rural Advocate News | Monday June 1, 2020 |
Monday Watch List Markets The first day of June will have traders poring over the latest weather forecasts early Monday. ISM's index of U.S. manufacturing is due out at 9 a.m. CDT, an index that will be compared with other countries dealing with coronavirus. USDA's weekly report of grain export inspections is at 10 a.m., followed by Crop Progress at 3 p.m. CDT. USDA will reveal crop ratings for both, corn and soybeans in Monday's report. Traders remain leery of news related to China. Weather Monday features the beginning of warm to hot conditions over the central U.S. The heat is mostly favorable due to adequate soil moisture in most areas. Rain will be limited to the northern Midwest, southern Texas and portions of the Northwest.
| Rural Advocate News | Friday May 29, 2020 |
Hong Kong Trade Status, U.S. Relationship with China, in Limbo The Trump Administration sent a formal notice to Congress that it doesn’t see Hong Kong as an autonomous region from China. Politico says that puts Hong Kong’s status as a separate customs territory at risk and opens up Beijing to sanctions. The move would hurt Beijing but also lessen Hong Kong as an Asian center for business and finance. “I fully expect the U.S. to proceed with sanctions on individuals and entities deemed to be undermining Hong Kong’s autonomy,” says Bonnie Glaser, director of the China Power Project at the Center for Strategic and International Studies. Politico says Beijing recently proposed a “national security law” that would bypass Hong Kong’s legislature and give China more authority to crack down on protests. What’s next for the U.S. is currently up to President Trump, who hinted at the possibility of sanctions on the Asian nation. China has already vowed to retaliate if the U.S. takes strong actions because of its moves against Hong Kong. Assistant Secretary of State for East Asian and Pacific Affairs David Stilwell says the possibilities include personnel sanctions, visa sanctions, economic sanctions, as well as numerous other options. The U.S. Chamber of Commerce says any changes to Hong Kong’s status could have serious impacts on the more than 1,300 U.S. companies that operate in the island nation. ********************************************************************************************** Brazil’s Ag Exports to China are “Booming” The first four months of 2020 were profitable for Brazilian ag exporters. Brazil’s agricultural exports to China were worth $31.4 billion from January through April. MercoPress reports that it marked a 5.9 percent increase year-over-year. The growth in agricultural exports to China resulted in a more than 11 percent increase in export volume, while the index price actually suffered a drop of 4.7 percent. The Brazilian Department of Trade and International Relations says those sales numbers broke the record for the largest amount ever shipped between January and April. The agricultural exports accounted for almost half of the total number of Brazilian exports (46.6 percent) during the first four months of this year. Brazil took in $4.57 billion worth of imports, which resulted in an agribusiness trade surplus of $26.83 billion during that time. Soybean exports were big from January through April, setting records in terms of revenue worth $11.5 billion and quantity at 33.66 million tons shipped. That’s despite a 4.2 percent drop in the average price for soybeans. Brazil sent China a whopping 73.4 percent of its total grain exports and sold a record $2.13 billion worth of fresh beef to China. ********************************************************************************************** African Swine Fever Impact Even Greater in 2020 Experts are saying that the African Swine Fever outbreak that continued last year could have an even bigger impact in 2020. The Guardian says that the highly-contagious virus that is fatal to pigs is still spreading at a rapid rate. While human attention is on the COVID-19 outbreak, the concern is growing around the world that countries are not putting enough focus on halting the spread of ASF through better biosecurity practices, cooperating on vaccine development, or being transparent about the scope of outbreaks. Despite being present in the world for more than 100 years, there is still no vaccine for the disease that kills almost every animal it infects. “The ASF virus is much more potent than COVID-19 because it can survive in the environment or processed meats for weeks and months,” says Dirk Pfeiffer, a veterinary science professor at City University in Hong Kong and one of the world’s leading experts on ASF. The disease reached China in the fall of 2018 and unofficially led to culling more than 200 million pigs from the world’s largest hog herd. Global ASF infection numbers by the end of April showed this year is close to or above the infection numbers from 2019. China, Vietnam, the Philippines, and Eastern Europe are the current focal points for outbreaks, with new outbreaks showing up in India and New Guinea. ********************************************************************************************** House, Senate Ag Committees Get Low Grades on Oversight The House Agriculture Committee got a D grade and the Senate Ag Committee received a C- on oversight. Those grades came from the Lugar Center, which was founded by former Indiana Republican Senator and Ag Committee Chair Richard Lugar, in a report that measured congressional oversight. The Hagstrom Report says the Congressional Oversight Hearing Index categorizes and catalogs all congressional hearings held over the past 12 years, which totals up to about 20,000 hearings. After looking through all the data, the index assigns grades to the oversight performance of current congressional committees and past committees going back to 2009. “Most Americans agree that robust congressional oversight of the workings of our government and society is an important element of American Democracy,” says Dan Diller, policy director at the Lugar Center. “Until now, there’s been no objective criteria for gauging whether congressional committees are living up to their oversight responsibilities.” Of the 17 House Committees the center graded, nine received A’s, two got B’s, and three were given C’s. However, the Senate grades weren’t as high. Of the 17 Senate committees given grades, just two got A’s, none were given B’s, four received C’s, and eight Senate committees were given F’s. ********************************************************************************************** Second Annual “BeSure!” Campaign is Underway The second “BeSure!” campaign supported by the National Corn Growers Association is off and running through July. The effort is aimed at helping pollinators by promoting best management practices and habitat creation year-round. BeSure! centers on promoting proper use of neonicotinoid (neo-NIH-cuh-tih-noid) products to protect honeybees and other pollinators critical to the food supply and ecosystem. This year, the campaign is seeking to reach not only growers and applicators, but also golf course, turf, and ornamental landscape managers. In its debut year, BeSure! focused its messaging on major crops in the Midwest that utilize neonicotinoid-treated seeds, such as corn and soybeans. This year, the campaign is expanded to include neonicotinoid foliar sprays, soil drenches, and granule uses on fruits, nuts, vegetables, turf tress, and ornamental plants that bees visit regularly. “Neonicotinoids are widely used in agriculture and a variety of landscape and nursery settings,” says Tom Smith, executive director of the National Pesticide Safety Education Center. “Regardless of the application method, product label directions should always be followed, and responsible stewardship practices used to protect pollinators.” Other companies behind the BeSure! Campaign include the American Soybean Association, American Seed Trade Association, CropLife America, and the Agricultural Retailers Association. ********************************************************************************************** Governors Ask Congressional Leadership to Support Ethanol Relief South Dakota Governor Kristi Noem and Minnesota Governor Tim Walz sent a letter to leadership in both chambers of Congress asking them to support relief for the biofuels industry. The Midwest governors are asking Congress to make sure that relief for the biofuels industry is included in Phase 4 COVID-19 emergency relief package currently making its way through Congress. Governor Noem and Governor Walz are the chair and vice-chair of the Governors’ Biofuels Coalition. The governors pointed out that nearly three-fourths of the nation’s 204 ethanol plants are fully or partially idled, resulting in workers being laid off, lost markets for farm commodities, and constrained supplies of critical ethanol co-products. “We’re pleased to see that two bills were recently introduced in both the Senate and the House,” they wrote in their letter. “The Senate’s Renewable Fuel Feedstock Reimbursement Act of 2020, introduced by Senators Grassley and Klobuchar, and the Renewable Fuel Reimbursement Program Provision included in the HEROS Act, provide critical emergency relief to renewable fuel producers.” They say these initiatives provide responsible and much-needed economic relief to their states’ biofuel producers. “Our states’ ethanol industries have become an irreplaceable contributor to our nation’s economy, and they must be preserved,” the governors concluded.
| Rural Advocate News | Friday May 29, 2020 |
Washington Insider: Holding Back on Economic Data In an unusual move, White House officials have decided “not to release updated economic projections this summer,” the Washington Post reported this week. The White House normally publishes a federal budget proposal every February and then provides a “mid-session review” in July or August with updated projections on economic trends such as unemployment, inflation and economic growth. Budget experts told the Post “they were not aware of any previous White House decision against providing forecasts in the mid-session review” in any other year since at least the 1970s. The Post also cited two White House officials who confirmed the “data decision” reflects the fact that the novel coronavirus is causing extreme volatility in the U.S. economy “making it difficult to model economic trends.” The decision gets them off the hook for having to say what the economic outlook looks like, said Douglas Holtz-Eakin, a former director of the Congressional Budget Office who served as an economic adviser to the late Sen. John McCain, R-Ariz. Both liberal and conservative critics said the White House should publish its economic projections as prior administrations did, regardless of uncertainty caused by economic conditions, the paper said. The White House under President Barack Obama continued to release these numbers during the Great Recession, although they were unflattering. The Post quoted a “senior administration official” who argued that it would be “foolish” to publish forecasting data when it “may mislead the public.” “Given the unprecedented state of play in the economy at the moment, the data is also extremely fluid and would produce a less instructive forecast," said the official, who spoke on condition of anonymity. "Furthermore, we remain in complete accordance with the law as there is no statutory requirement to release this information, just precedent, which, when compared to our current economic situation, is dismissible.” The magnitude of the economic impact of the coronavirus has grown by the week. The Treasury Department said earlier this month it plans to borrow $3 trillion from April through June to finance spending in response to the pandemic. The monthly deficit in April soared to $738 billion. In fact, the Post noted, there is a growing possibility of a “W-shaped economic recovery, and it’s scary.” Mainstream economists and Wall Street forecasters have predicted unemployment could remain north of 10% through 2020 and into 2021. Budget experts say there is no reason the White House would be unable to release its own economic projections. The Congressional Budget Office, for instance, updated its economic projections in both April and May as the coronavirus rippled through the U.S. economy. In its 2017 mid-session budget review, the White House said it would not be providing new economic projections, but for a much different reason. It said “economic developments over the past few months do not provide a basis for changing this forecast,” using the same assumptions it had in the previous budget. In other words, it was sticking with its previous projections. While this year’s mid-session budget will not include new projections, there is no logistical reason they couldn’t do it,” said Bill Hoagland, senior vice president at the Bipartisan Policy Center and former Republican staff director for the Senate Budget Committee. White House officials have claimed they are being transparent about the extent of the downturn. Kevin Hassett, a White House economist, said over the recent weekend that unemployment could remain north of 10% on Election Day in November. Larry Kudlow, director of the White House National Economic Council, said last week that “the numbers coming in are not good. In fact, they are downright bad in most cases.” Critics charge that the White House is not confronting the extent of the economic damage facing the nation. The administration has largely broken off negotiations now with Congress on an additional stimulus package, although many economists say additional stimulus is necessary, the Post said. “They’re never going to address the problems if they put these kinds of blinders on,” said Jared Bernstein, a former economic adviser to presumptive Democratic presidential nominee Joe Biden. “Managing the economy means publishing credible forecasts.” White House officials have defended their response to the economic downturn, citing the trillions of dollars they approved with Congress to pump into the economy. The Post report suggests that the decision to withhold the midseason projections is a “big deal” and that agencies need good information on the economic outlook to plan. The economy today is not the economy six months ago,” said Claudia Sahm, who worked on the macroeconomic forecast underlying the budget as an economist in the White House Council on Economic Advisers during the Obama administration. “Without these forecasts, they cannot ask for the right amount in appropriations.” So, we will see. Economic experts tend to argue that intense economic volatility supports the need for fresh economic data, rather than reducing it. So, the Trump administration can expect strong criticism for its decision. Information policies are important for modern producer operations, and decisions in this sphere should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday May 29, 2020 |
Livestock Sector Challenges Noted In Fed Update The Fed’s Beige Book report was replete with notations of pandemic-related impacts in a host of sectors. Chicago, Minneapolis, St. Louis, Kansas City and Dallas Fed banks focused their ag recaps on the livestock sector impacts from meat plans being closed or running at reduced capacity. “With no place to deliver market-ready animals, farmers were forced to slow herd growth (including by euthanizing hogs),” the Chicago Fed noted. “On net, the supply disruptions led to higher prices and shortages of meat at grocery stores and restaurants, but lower prices for cattle and hogs.” The Kansas City Fed pointed out, “roughly a quarter of U.S. meatpacking and food processing plants with confirmed COVID-19 cases were located in the District.” In terms of overall ag conditions, the Chicago recap included an observation that “Farmers anticipated government programs would help during the downturn, but observers expected some distressed farms to be forced to liquidate.”
| Rural Advocate News | Friday May 29, 2020 |
US Food Chain Issues Targeted In Legislation Democrats on the Senate Agriculture Committee released a bill on Wednesday which outline what they want in the next COVID-19 aid plan. The Food Supply Protection Act would provide $5.5 billion in grants, loans and loan guarantees to help small- and medium-sized companies shift their operations to respond to COVID-19, including procuring more personal protective equipment and testing. The proposal includes $1 billion for grants to help food banks and other nonprofits boost their capacity to handle food and $1.5 billion for more surplus food purchases, including a new clearinghouse to help connect excess products with groups that need it. “The COVID-19 crisis has tested the strength of our nation’s food supply chain, creating a ripple effect that’s harming our families, farmers and workers,” said Sen. Debbie Stabenow, D., Mich., ranking member of the Senate Agriculture Committee, in a statement.
| Rural Advocate News | Friday May 29, 2020 |
Friday Watch List Markets The final trading day of May starts with weekly grain export sales and U.S. personal incomes at 7:30 a.m. CDT, followed by the University of Michigan's consumer sentiment index at 9 a.m. The latest weather forecasts and any trade news, especially involving China remain topics of high interest. President Donald Trump is expected to have a news release concerning China sometime Friday. Weather Light rain is in store for the eastern Midwest Friday. Other primary crop areas will be dry. This is the start of a general drier trend through early June.
| Rural Advocate News | Thursday May 28, 2020 |
ITC Investigating Economic Impact of Duty-Free Imports from Kenya The U.S. International trade Commission announced this week an investigation that will outline the economic impacts of removing import duties on products from Kenya. The move comes at the request of U.S. Trade Representative Robert Lighthizer, who asked the USITC to provide the assessment in March. The USITC expects to submit its confidential report to Lighthizer by September 16, 2020. The assessment is part of ongoing trade talks between the U.S. and Kenya. Lighthizer last week released a summary of negotiating objectives including specific goals for goods and commodities, and sanitary and phytosanitary measures. The objectives seek to “Secure comprehensive market access for U.S. agricultural goods in Kenya by reducing or eliminating tariffs.” Additionally, the U.S. seeks to provide reasonable adjustment periods for U.S. import-sensitive agricultural products. The trade talks also seek to establish specific commitments for trade in products developed through agricultural biotechnologies, including transparency, cooperation, and managing low level presence issues, and a mechanism for exchange of information and enhanced cooperation on agricultural biotechnologies. ************************************************************************************ Stabenow Introduces Food Supply Protection Act Senator Debbie Stabenow Wednesday introduced legislation to help protect the food supply after the COVID-19 crisis has put an unprecedented strain on farmers, workers, food banks and families. Stabenow, the Ranking Democrat on the Senate Ag Committee, says, “This bill will help strengthen our food supply.” The Food Supply Protection Act will support food banks and non-profits to help increase their capacity and address growing demand. The bill will provide infrastructure grants that can be used for additional cold storage and refrigeration, transportation, personal protective equipment, rental costs and additional use of commercial and community infrastructure. Further, Stabenow says the bill will strengthen food partnerships to prevent food waste and feed families through grants and reimbursements. Additionally, the bill will use grants, loans and reimbursements to protect workers and retool small and medium sized food processors. The bill is supported by more than 40 food and agriculture groups, including Feeding American, the National Farmers Union and the United Farm Workers Union. ************************************************************************************ Iowa Ag Department Launches Pork Disposal Assistance Program The Iowa Department of Agriculture is launching a disposal assistance program to help pork producers who are unable to harvest pigs due to COVID-19 supply chain disruptions. COVID-19-related worker shortages are causing meat processing facilities to drastically reduce production. Iowa State University estimates that, as of mid-May, approximately 600,000 pigs in Iowa were unable to be harvested. The Department is offering producers $40 per approved animal to help cover some of the disposal costs for market-ready hogs, weighing at least 225 pounds. Producers must provide documentation, including proof of proper disposal, and an affidavit from their herd veterinarian confirming impending welfare issues, to receive funding. The disposal assistance funding will be made available to Iowa producers in at least three rounds. Each approved applicant will receive funding for at least 1,000 animals and up to 30,000 animals per round, depending on the number of applicants. To qualify for the first round of funding, producers must submit their applications to the Iowa Department of Agriculture before May 29. ************************************************************************************ H-2A Positions Increase Fivefold Since 2005 The Department of Agriculture says the number of H-2A workers increased fivefold between 2005 and 2019. Calling the data an indicator of the scarcity of farm labor, USDA’s Economic Research Service says the number of H-2A positions requested and approved increased from just over 48,000 in 2005 to nearly 258,000 in 2019. The H-2A Temporary Agricultural Program provides a legal means to bring foreign-born workers into the United States on a temporary basis. Workers employed on an H-2A visa are allowed to remain in the U.S. for up to ten months at a time. Employers must demonstrate, and the U.S. Department of Labor must certify, that efforts to recruit U.S. workers were not successful. Employers must also pay a region-specific minimum wage, known as the Adverse Effect Wage Rate. The Economic Research Service says the average duration of an H-2A certification in 2019 was 5.3 months, implying that the 258,000 positions certified represented about 114,000 full-year workers. ************************************************************************************ USDA Funding Rural Water and Wastewater Improvements The Department of Agriculture Wednesday announced a $281 million investment for 106 projects to improve rural water and wastewater infrastructure. Announced by deputy undersecretary for rural development Bette Brand, the funding will assist rural communities in 36 states and Puerto Rico. Brand says the investments will “bring modern, reliable water and wastewater infrastructure to rural communities.” USDA is funding the projects through the Water and Waste Disposal Loan and Grant program. Eligible applicants include rural cities, towns and water districts. The funds can be used for drinking water, stormwater drainage and waste disposal systems in rural communities that meet population limits. The funds will help rural communities replace deteriorating, leaking water pipes with new ones, and upgrade water and wastewater handling systems that are decades old. USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. For a list of funded projects, visit www.rd.usda.gov. ************************************************************************************ Propane Council Announces Game and Educational Website The Propane Education and Research Council this week announced www.PropaneKids.com. The website is an interactive online activity center for parents and caretakers of preschool and young school children looking for learning opportunities. The site includes games, activities, and even science experiments for children that are designed to reinforce the importance of propane safety and education with a focus on the farm. Tucker Perkins, President and CEO of PERC, says, “We wanted to do our part to help provide a fun, free learning center for young children.” At PropaneKids.com, parents, caregivers, and their children can explore a virtual farm or create their own, play games like farm bingo and spot-the-difference and color digital coloring pages. Americans living on acreages and farms away from the city center are already familiar with propane in use on their land. Nearly 40 percent of farms in America rely on propane in their farming and ranching operations to run pumps and engines, heat buildings, and dry and process crops.
| Rural Advocate News | Thursday May 28, 2020 |
Washington Insider: Something Suspicious About Soaring Meat Prices Politico and others are pretty steamed up about meat prices these days. “Supermarket customers are paying more for beef than they have in decades,” Politico says, but hastens to add that the companies that process the meat for sale are paying farmers and ranchers “staggeringly low prices for cattle.” Now, the USDA and prosecutors are investigating whether the meatpacking industry is manipulating prices. The federal government did the same thing 100 years ago when antitrust prosecutors broke up meat “monopolies.” Can they repeat the process Politico asks? The Department of Justice is looking at the four largest U.S. meatpackers -- Tyson Foods, JBS, National Beef and Cargill -- which collectively control about 85% of the U.S. market for the slaughter and packaging of beef, Politico says. Meatpackers say beef prices have spiked during the pandemic because plants are running at lower capacity as workers fall ill, so less meat is moving through supply chains. However, there is “evidence that something isn’t right in the industry,” said Sen. Chuck Grassley, R-Iowa. In April, he requested federal investigations into “market manipulation and unfair practices” within the cattle industry. So have 19 other senators and 11 state attorneys general. Much of the criticism is aimed at the unusual price behavior. Ed Greiman, general manager of Upper Iowa Beef who formerly headed the Iowa Cattlemen’s Association, attributed the consumer price increase to plants running at lower capacity. “I’m running at half speed,” Greiman said. “Cattle are backing up because we can’t run our plants fast enough. Nothing is functioning properly. We need to be careful not to put blame on any one thing or part of the industry because we can’t get these plants going." The industry has long been a focus for government antitrust enforcement. Exactly 100 years ago, after years of litigation, the five biggest U.S. meatpackersâ??which then accounted for 82% of the beef marketâ??agreed to an antitrust settlement with the Justice Department that helped break their control over the industry. “There’s greater concentration in meatpacking now” than in 1921, said Thomas Horton, an antitrust professor at the University of South Dakota, who previously worked at the Justice Department. The first antitrust laws were “passed to take care of the Big Five. Now we have the Big Four. We’re going backwards.” Not only are their fewer packing plants but about 70 percent of cattle are sold under contracts for delivery at an a certain weight with the price to be determined later. The is usually by a formula that takes into account how much cattle sell for in the cash market. The use of contracts has some advantages for ranchers, because they know they have buyers and don’t have to spend time in negotiations, said Ted Schroeder, an agricultural economist at Kansas State University. But the decline in data from cash sales has made it harder to figure out the “right” price for cattle, he said. Worker illnesses and temporary plant closures have held plants to about 50% of operating capacity, Schroeder said and calls the rising consumer prices and falling cattle prices “normal” responses to market trends. It’s economics 101 We are pretty close to the wholesale and farm prices he would expect “given the bottleneck,” he said. Not everyone agrees. Last year, ranchers filed an antitrust suit against the four meatpackers for colluding to depress cattle prices. The suit, pending in Minneapolis federal court, alleges that the large packers began coordinating in 2015 to reduce the number of cattle slaughtered while also limiting how many they bought in the cash market. Ranchers with excess animals on their hands were forced to sell for less or enter into long-term contracts beneficial to meatpackers. “The Big Four simultaneously withdrew from the cash market with intent to reduce prices across the board,” said Bill Bullard, CEO of Ranchers-Cattlemen Action Legal Fund, one of the lead plaintiffs in the suit, in an interview. This “drove prices down at least 8 percent,” said Bullard. The Justice Department could once again try to make a case that the meatpackers have engaged in “an anticompetitive set of industry practices, which taken together, violate antitrust law and require a broader restructuring,” Bullard said. Bullard’s group is also pushing for broader changes to the industry, such as requiring packers to buy at least half of their cattle from the cash market or prohibiting contracts that don’t include prices. Senator Grassley, meanwhile, says he’s not ready to call for the breakup of major meatpackers, but he has “a great deal of questions about whether they’re operating within the law.” Kansas’ Schroeder, though, warned against moving the industry backwards. Breaking up the meatpackers would likely lead to higher consumer prices, he thinks and insisting on cash sales would eliminate some of the advantages, like stable supply, that contracts offer. “We should be cautious how we approach regulation, so we don’t turn the apple cart upside down, he said.” So, we will see. The U.S. meat supply chains are extremely complex and difficult to change and have developed high levels of efficiency and well tested safety practices that are also hard to change. At the same time, the coronavirus pandemic is a threat unlike any seen in modern times and will bring unanticipated pressures and challenges that producers should watch closely as the industry accommodates, Washington Insider believes.
| Rural Advocate News | Thursday May 28, 2020 |
FCC Proposes Establishing 5G Fund for Rural America The Federal Communications Commission (FCC) is seeking comments on a proposal to retarget universal service funding for mobile broadband and voice to deploy 5G services to rural areas of the country by setting up the 5G Fund for rural America. In a notice in the Federal Register, FCC said that while T-Mobile has committed to deploy 5G service to 99% of Americans within six years and cover 90% of those living in rural areas, FCC said it was “concerned” that some rural areas will still not be serviced due to “insufficient financial incentive” for mobile wireless carriers to invest in 5G-capable networks and potentially leave areas of the country excluded from 5G for years to come. FCC noted that given issues that have been revealed with the deployment of 4G LTE networks in rural areas, it proposes to distribute up to $9 billion in two phases to support 5G service in rural areas. The initial stage would target at least $8 billion for rural areas, targeting a 5G Fund Phase I auction in 2021. Phase II would target “harder to service and higher cost areas, such as farms and ranches,” with $1 billion in funds “specifically aimed at deployments that would facilitate precision agriculture.” Comments on the plan are due by June 25.
| Rural Advocate News | Thursday May 28, 2020 |
DOE Official Comments Spark Fresh Concern From RFA Over RFS Waivers Comments by current Energy Undersecretary Mark Menezes during his confirmation hearing for the post of Deputy Energy Secretary have raised new concerns about small refinery exemptions (SREs). Menezes was asked if the DOE would consider past year applications for SREs. This appears to be an effort to address the 10th Circuit Court ruling which said that invalidated three SREs issued for the 2016 compliance year on the basis that they had to have requested SREs in years following 2010. “I can assure that as EPA sends over these … filings if you will to be consistent with the 10th Circuit decision,” Menezes said. “We will review them expeditiously and we will return them as promptly as we can to the EPA with our determinations as we have done in the past.” The Renewable Fuels Association (RFA) has decried the situation, telling EPA Administrator Andrew Wheeler in a letter that the effort amounted to an “end run” that was not consistent with the court ruling. RFA President Geoff Cooper said the apparent effort is a “thinly veiled attempt to circumvent the 10th Circuit’s decision” by retroactively seeking exemptions to establish a continuous string of SREs and thus maintain the refiners’ eligibility for SREs in subsequent compliance years.
| Rural Advocate News | Thursday May 28, 2020 |
Thursday Watch List Markets The calendar is busy Thursday morning. U.S. jobless claims, first quarter GDP, U.S. April durable goods orders and an update of the U.S. Drought Monitor are all out at 7:30 a.m. CDT. The U.S. pending home sales index for April is at 9 a.m., followed by natural gas inventory at 9:30 a.m. and the Energy Department's weekly inventory report at 10 a.m. CDT. Traders will also watch the latest weather forecasts, any export news and for any hints of President Donald Trump's response to China's move in Hong Kong. Weather Light to moderate rain is in store for most central and eastern crop areas Thursday. The rain will continue to delay later-stage planting. Western crop areas will be dry with favorable conditions for crop development. Temperatures will be mainly seasonal to above normal.
| Rural Advocate News | Wednesday May 27, 2020 |
Online Grocery Shopping a New Reality The COVID-19 pandemic has changed the ways shoppers fill their grocery needs. Throughout the pandemic, the Food Marketing Institute has been tracking consumer trends and charting how shopping behaviors are changing. While it’s uncertain how the trends will continue, the pandemic will permanently change consumer habits. Pre-coronavirus, FMI projected that online food and beverage sales would equate to $143 billion by 2025, representing about 18 percent of an expected overall $800 billion in combined online and in-store spending for food and beverages at home. However, since the pandemic, about 21 percent of Americans have tried online shopping for the first time, eight percent have returned, and 19 percent are continuing to online shop. FMI President and CEO Leslie Sarasin says, “Online grocery shopping is a new reality for our retail and wholesale members.” Research by FMI suggests that not everyone will continue ordering online at the levels they were during the height of the pandemic, but they are likely to continue using it more. ************************************************************************************ House Lawmakers Press USDA Over Food Box Contracts House Agriculture Committee members want questions answered regarding the Department of Agriculture’s Families Food Box Program. Led by Democrat Marcia Fudge of Ohio, the group sent a letter to Agriculture Secretary Sonny Perdue. They say the letter comes amid reports of contracts under the program awarded to companies with little to no experience in agriculture and food distribution, and may have little or no capacity to meet the obligations set by USDA. The lawmakers are seeking information on what criteria were used to determine which applicants would be awarded contracts. They also want to know how USDA considered applicants' financial standings, along with consideration of minority-owned businesses, and how USDA will ensure the contracts are fulfilled. How USDA evaluated applicants, and food safety concerns are also on the list. Representative Stacey Plaskett of the U.S. Virgin Islands and Representative Jim Costa of California joined Fudge in the letter. The three lawmakers chair separate House Agriculture subcommittees. ************************************************************************************ Farmland Prices Continue Decline, Farm Borrowing Increasing The latest Rural Mainstreet Index from Creighton University shows farmland prices are declining while farmer borrowing is growing. Released last week, the overall index for May increased to 12.5 from April's record low 12.1, but down significantly from March's weak 35.5. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral. Farmland prices continue to slide as May’s reading fell to 39.7 from April’s 40.9. This is the 77th time in the past 78 months the index has been below growth neutral. The May farm equipment-sales index increased slightly to 21.9 from 20.0 in April. This marks the 80th straight month that the reading has remained below growth neutral 50.0. Borrowing by farmers expanded for May, but at a slower pace than in April. The borrowing index slipped to 72.2 from April’s 75.8. The checking-deposit index soared to 86.1 from April’s 65.6, while the index for certificates of deposit and other savings instruments increased to 48.6 from 48.4 in April. ************************************************************************************ AEM Developing Health and Safety Guidelines for Events The Association of Equipment Manufacturers will craft guidelines for industry exhibitions and events. The association recently formed a Health and Safety Task Force to guide its efforts in ensuring the well-being of exhibitors, attendees, industry peers, and AEM members and staff at association-run events. The task force will create a universal set of health and safety guidelines. The team will consider all touch points of every visitor group's experience, vendor roles, implication to contracts, communication of practices to stakeholders, cost and revenue impact, as well as execution. The initial set of guidelines created by the Health and Safety Task Force will focus on the ongoing COVID-19 pandemic and minimizing the potential risk of infection for AEM staff and visitors. However, once the pandemic passes, the team will craft a revised set of guidelines for implementation at the appropriate time. The initial set of guidelines will be in place prior to AEM's Product Safety & Compliance Seminar and Liability Seminar, scheduled this August in Illinois. ************************************************************************************ Deere Earnings Beat Expectations John Deere's quarterly sales and profit estimates beat expectations. Net income fell 41 percent to $665.8 million, or $2.11 per share in the quarter, but beat analysts’ average estimate of $1.62 per share, according to Reuters. Equipment sales declined 20 percent to $8.22 billion, topping expectation of $7.69 billion. Agriculture and turf sales decreased for the quarter due to lower shipment volumes and the unfavorable effects of currency translation. The new forecast from the company expects farm and turf equipment sales to fall between 10 percent and 15 percent this year. Net income attributable to Deere and Company is forecast to be in a range of $1.6 billion to $2 billion for the full year. However, many uncertainties remain regarding the effects of the COVID-19 global pandemic that could negatively affect the company's results and financial position in the future. A news release states, “Uncertainties related to the magnitude and duration of the COVID-19 pandemic may significantly adversely affect the company’s business and outlook.” ************************************************************************************ Gas, Diesel Prices Continue Rising For the fourth consecutive week, the national average price of gasoline increased, up 5.5 cents to $1.96 per gallon. The average price of diesel rose 0.2 cents to $2.41 per gallon. Patrick DeHaan with GasBuddy says as long as COVID-19 cases continue to drop over time and states reopen, average prices could hit the $2 per gallon mark as early as this week. Crude oil prices continued to rally over the last week, though the increase was smaller than previous weeks. The rally in crude oil comes as production continues to drop to meet reduced global demand, and while demand has begun to recover, pushing the needle of prices higher. Last week’s data from the Energy Information Administration pointed to yet another drop in crude oil inventories, which fell five million barrels, but remain a healthy ten percent above year-ago levels. Gasoline inventories saw a rebound of 2.8 million barrels, while distillate inventories perked up 3.8 million barrels.
| Rural Advocate News | Wednesday May 27, 2020 |
Washington Insider: Shape of Next Coronavirus Bill Bloomberg is reporting this week that the contents of the next coronavirus relief package will hinge on a central question of "whether the goal should be to provide another tourniquet for the economy or a crutch to help return it to normal.” House Democrats focused their claim for the upcoming negotiations by passing a $3 trillion relief package. Republican leadership and the White House are taking a more cautious approach, calling for some time to measure the impact of previous relief bills and determine what else is needed to get the economy on track. The tension over whether the next package should aim to provide more aid or stimulate a reopening economy is evident in two of the key areas of disagreement: whether unemployment benefits and further federal aid to states should be extended in the next bill, which could rival or exceed the size of the third law, known as the CARES Act. “Republicans know CARES was not the end of the congressional response but they clearly don’t feel the same urgency as their blue state counterparts,” said Liam Donovan, a principal at Bracewell LLP in Washington. “You might think of this ongoing pause as walking away from the legislative bazaar â?? blithely dismissing what they deem a liberal wish list, winding down the clock, and lowering the price on the inevitable next phase.” Aides on both sides of the aisle expect talks to gain steam in June. By that time, the effectiveness of the Federal Reserve’s new emergency powers and the return to operations of some nonessential businesses could weigh heavily on the next steps. There appears to be bipartisan momentum behind certain provisions in the House-passed response bill, including tweaking the employee retention credit to make it more usable, providing further financial assistance through the tax code to help businesses cover fixed costs during shelter-in-place orders and loosening IRS rules on deductions related to loans issued under the Paycheck Protection Program. Less clear is whether Republicans would agree to another round of direct payments to Americans, something they viewed as an emergency bridge to increased unemployment benefits. Aides agree that the parties are in a ‘pre-negotiation’ phase, trying to build consensus within their own ranks. A $600 weekly increase in unemployment insurance, set to expire at the end of July, will be critical to those talks. It is popular among Democrats but Republicans see it as disruptive to the labor market in re-opening states. Two influential Senate Finance Committee members have launched opening bids in an effort to reach compromise. Sen. Rob Portman, R-Ohio, is calling for a $450 weekly “back-to-work bonus” for people who can go back to work before the end of July. The proposal, which he intends to include in the next bill, would use funding from the increased unemployment benefit to pay for the bonus, but keep that beefed up insurance in place for those who don’t have a job to return to. Sen. Ron Wyden, D-Ore., is drafting a proposal that would extend the benefit by tying it to the unemployment rate. The idea would be to sidestep the politics of extending the subsidy by automating it. “If you can tie things to economic indicators that can be helpful, it just has to be done right,” a Senate Republican staffer told Bloomberg when asked about Wyden’s idea, though the aide said there is concern that the increased benefit would fuel continued high unemployment. The aide said a setting a sunset date for the provision might help convince Republicans. There is a closer deadline when it comes to aid for states and localities. Most state and local fiscal years end June 30 and early data on lost tax revenue could drive action on more federal aid. But for now, Republicans are gambling that the authorization Congress gave the Fed to extend credit to state and local governments will lessen the need for more direct federal help, even though that credit has yet to be fully implemented. “Currently we still have additional funds to probably the tune of over a trillion dollars that’s yet to actually be put out into the market from the last CARES Act,” Rep. Patrick McHenry, R-N.C., the top Republican on the House Financial Services Committee, told Bloomberg last week. “So, let’s make sure that those dollars are effective before we spend again.” The more gradual approach towards the next bill also applies in the other direction: Republicans don’t want to pare back existing relief measures like a CARES Act provision allowing businesses to carry back net operating losses as far back as five yearsâ??as some current proposals would do. Mark Warren, chief tax counsel for Senate Finance Republicans, indicated during a May 22 panel discussion with Grossman that Republicans wouldn’t be open to passing something that they would view as a retroactive tax increase. “Especially when economists all say that increasing taxes in a recessionâ??it hasn’t been declared yet, but it’s hard to imagine we’re notâ??that that’s just really the wrong policy for a recovery,” Warren said. So, we will see. Clearly, the stakes are high concerning the details in the next legislative package. As a result, the current negotiations should be watched closely by producers as details are hammered out over the coming weeks, Washington Insider believes.
| Rural Advocate News | Wednesday May 27, 2020 |
House Democrats Raise Questions with USDA’s Perdue Three House Agriculture subcommittee chairmen sent USDA Secretary Sonny Perdue questions about how $1.2 billion in contracts for the new Farmer to Families Food Box program were awarded. The lawmakers also sought answers on how the department will determine if contracts are fulfilled and what actions it will take against an awardee not meeting contract requirements. The effort it part of the Coronavirus Food Assistance Program (CFAP) where USDA said it would use $3 billion for the effort. Asking the questions were Reps. Marcia Fudge, D-Ohio, Jim Costa, D-Calif., and Stacey Plaskett, D-U.S.V.I.
| Rural Advocate News | Wednesday May 27, 2020 |
COVID-19 Prompts Upward Revision to USDA Food Price Forecasts The impact of the COVID-19 situation continues to show in various areas, now showing in food prices. USDA’s monthly update to the food price forecasts typically does not see a lot of adjustments. The April rate of inflation for food at home (grocery store) prices increased 2.7% from March and were up 4.1% from April 2019. “Food-at-home prices had a month-to-month rate of inflation higher than any month since 1990, while food-away-from-home prices were nearly flat,” USDA’s Economic Research Service (ERS) said. “For the past several years, inflation for food-at-home prices had been slower than for food-away-from-home prices; however, the effects of the COVID-19 pandemic have ended that trend.” The situation also prompted an upward revision to the grocery store (food at home) price forecast, upping that to a rise of 2% to 3% vs 0.5% to 1.5% the agency saw in their month-ago update. And overall food prices are now seen rising 2% to 3% as well, up from 1.5% to 2.5% previously. Within the grocery store prices, only three areas were not revised upward from the month-ago marks.
| Rural Advocate News | Wednesday May 27, 2020 |
Wednesday Watch List Markets With the trading calendar shortened by Memorial Day, the weekly report of energy inventories is pushed to Thursday and the only official report on Wednesday is the Federal Reserve's Beige Book at 1 p.m. CDT. The latest weather forecasts and any export news will maintain high interest, as usual. Weather Light to moderate rain is in store for portions of the eastern Midwest Wednesday, while broad rain coverage is indicated for the Delta and Southeast. Other primary crop areas will be dry.
| Rural Advocate News | Tuesday May 26, 2020 |
White House: China Deal is “On Track” Officials in the Trump Administration are talking positively about China’s commitments in implementing the Phase One trade deal with the U.S. Politico says that’s even as the coronavirus outbreak that began in China is straining relations between the countries. The deal requires China to make their markets more open, as well as increase its purchases of U.S. farm goods, manufactured goods, as well as energy and services by $200 billion above 2017 levels in the next two years. U.S. Trade Representative Robert Lighthizer says China is working to expand access for U.S. producers. Ag Secretary Sonny Perdue is also upbeat about the recent steps China took to open its market to U.S. goods like avocados, blueberries, barley, meat, dairy, and forage products. However, officials didn’t release the exact numbers of goods China has bought since the start of 2020. U.S. trade data that came out earlier in May showed that U.S. goods exported to China were actually coming in below the benchmark levels set in 2017. That prompted President Trump to say there was always the option of ending the agreement if China didn’t meet its obligations. ********************************************************************************************** Potato Industry Feels Left Out of CFAP The National Potato Council and state grower organizations wrote Ag Secretary Sonny Perdue last week to talk about potatoes that have nowhere to go for processing. The Hagstrom Report says the council noted more than “1.5 billion pounds of fresh potatoes for processing and potato products are trapped in the supply chain with no likely customers.” Mountains of potatoes are being given away or left to cow feed as surplus crops are piling up despite government efforts to distribute the potatoes as part of food boxes being given to needy families. The potato sector feels like the USDA’s new Farmers to Families Food Box program, as well as other initiatives, aren’t enough to dent the losses in a sector that depends heavily on foodservice sales. Kam Quarles (Quarrels), CEO of the National Potato Council, says, “It was clear the people who were doing well in retail could probably take more advantage of this than the impaired side of the business, which is food service.” The NPC sent a letter to USDA saying, “This oversupply has impacted both the 2019 and 2020 crop for U.S. family farms that grow potatoes. Some of these farms will have no ability to sell their 2019 or 2020 crop.” The industry suggested several enhancements regarding eligibility and payment rate adjustments that will help USDA help the industry. ********************************************************************************************** Rural Infrastructure Advancement Act Introduced in the Senate Senator Roger Wicker of Mississippi introduced Senate Bill 3842, called the Rural Infrastructure Advancement Act. Wicker authored legislation that would establish a Rural Assistance Pilot Program to help rural communities and localities better utilize and leverage existing Department of Transportation funding and financing opportunities. “Rural states often face challenges when trying to find the financial resources necessary to fund critical infrastructure projects, such as improving our roads and bridges,” Wicker says. “This bill would provide professional technical assistance to rural communities interested in utilizing existing financial programs.” He says it’s important that they provide the resources necessary to support and advance rural infrastructure. The legislation would do several things, including establishing a pilot program that retains expert firms, all of whom will need DOT approval, to provide financial, technical, and legal assistance to rural project sponsors seeking to apply for a loan or grant. It would also authorize funding for the Transportation Department to carry out the program, develop an online portal for applications, and post information about the pilot program and the resources available online. ********************************************************************************************** Officials Say Cattle to Blame for E. coli Outbreak in California Outbreaks of E. coli that sickened almost 200 people in California late last year probably came from cattle grazing close to the farms that grew the tainted romaine lettuce. The Associated Press says those findings came from a report released late last week by the U.S. Food and Drug Administration. Cow feces, which can contain the bacteria, is considered by the FDA as “the most likely contributing factor” to three outbreaks of the food-borne illness that traced to fields in the Salinas (Suh-LEE-nuhs) Valley of California. The outbreaks happened last November and December and affected people in at least 16 states as well as Canada. No deaths were reported. Investigators concluded that the illness centered on ranches and fields owned by the same grower that was located downslope from the public land that cattle had grazed on. The FDA says it couldn’t definitively identify a route of contamination for the three 2019 outbreaks, but it did say the possibilities included water runoff from the grazing area, wind-blown material, or animals or vehicles tracking it out to fields in the area. The report’s executive summary says, “Agricultural water sources used to grow the romaine were also possible routes of contamination.” ********************************************************************************************** Dairy Farmers Partner with Pizza Hut, Giving Half-Million Pizzas to Graduates Dairy Management Incorporated and its checkoff partner Pizza Hut are joining together to give away half a million pizzas to the Class of 2020 high school graduates. “We are excited to partner with Pizza Hut to help high school seniors and their families celebrate this special milestone in their lives,” says Marilyn Hershey, Chair of DMI, which runs the national dairy checkoff. “This is a great example of what we accomplish when dairy farmers and importers build relationships with a company like Pizza Hut through our checkoff. The promotion was officially announced on the Tonight Show with Jimmy Fallon last week. “We have a long history of celebrating moments that matter, such as graduations, and Pizza Hut takes pride in being a part of our customers’ big days,” says George Felix, chief marketing officer for Pizza Hut. “It’s only natural that we’d be there for students and their families to help celebrate the accomplishments of the graduating class of 2020.” They’re also proud to partner with America’s hard-working dairy farmers. To claim a free one-topping medium pizza, go to www.pizzahut.com/gradparty for more information. Coupons will be valid through June 4. ********************************************************************************************** Beef Checkoff Recognizes Farmers and Ranchers for Keeping Beef on the Table As Americans fired up their grills for Memorial Day, the “Beef, It’s What’s for Dinner” campaign is highlighting the hard-working beef farmers and ranchers who make grilling season possible. They’re doing so in a new video, released on Memorial Day, that takes consumers on a dawn-till-dusk workday of raising beef, doing so in just 30 seconds. As the video ends, it proudly proclaims that “the summer grilling season is brought to you by beef farmers and ranchers.” The Federation Division at the National Cattlemen’s Beef Association says, “Beef sizzling on grills during the summer months has brought families together for generations.” The video, which will be shared throughout social and digital media, is just a glimpse into what’s coming this summer from the “Beef, It’s What’s for Dinner” campaign. This summer, the brand will focus on how grilling brings people together, be it physically or virtually, and will continue to recognize those who raise beef, starting with National Beef Burger Day on May 28.
| Rural Advocate News | Tuesday May 26, 2020 |
Washington Insider: Next Steps in US China Trade Spat A major item in the urban press this week is speculation about the next steps in the trade fight with China over Hong Kong. The Trump administration is promising “strong action” against China’s new national security law in Hong Kong, but faces limited options because any harsh penalties could likely also harm both Hong Kong and the U.S., Bloomberg says. While Secretary of State Mike Pompeo indicated Friday that the U.S. could reconsider Hong Kong’s special trade status, such broad actions risk significant harm to U.S. interests. As a result, the administration may consider sanctioning individuals or businesses involved in curtailing Hong Kong’s democracy or by maintaining special treatment of the territory for sensitive technologies, Bloomberg says. Businesses and investors are anxiously watching developments, which could have far-reaching implications for the U.S.-China relationship. Earlier this week, China reiterated a pledge to implement the first phase of its trade deal with the U.S. despite setbacks from the coronavirus outbreak. “Beijing’s decision puts the U.S. government in a difficult position, because any policy response against Hong Kong will largely punish the wrong actors,” said Leland Miller, chief executive officer of China Beige Book, a firm that researches China’s economy. “Pulling back its special status will mostly hurt Hong Kongers who overwhelmingly oppose this move as well as U.S. and other foreign companies based there. Visa restrictions or tariff hikes would be similarly counterproductive.” Miller said he expects the Trump administration to apply targeted sanctions but in order to turn up the heat the U.S. would have to target Beijing’s interests, not Hong Kong’s. “And with the phase-one deal still technically a go, the administration doesn’t appear to have much appetite for that right now,” he added. However, one administration spokesman told reporters at the White House that “Hong Kong has been the financial center of Asia for a very, very long time. I don’t think it will continue to be and so the costs for China and are very, very large” if the government moves forward, he added. With China as the world's second-largest economy, Hong Kong isn’t as important to mainland China’s economy as it once was. Yet the territory has remained a “crucial asset” for China, “as a starting point for mainland firms investing overseas, a source of equity and bond finance, and a channel for capital account opening,” Bloomberg said in a report last year. The Hong Kong Human Rights and Democracy Act, signed into law last fall, requires the secretary of State to certify, no less than annually, whether Hong Kong continues to warrant special treatment, as defined in the Hong Kong Policy Act. Pompeo was to submit a report to Congress weeks ago but held off until after China’s National People’s Congress met. Senator Marco Rubio, R-Fla., who sponsored the human-rights bill, said the administration had no choice but to certify that Hong Kong is no longer autonomous if the Chinese government implements the proposed national security law. He also said he expected the executive branch to meet its statutory deadlines. “Beijing’s exploitation of U.S. capital markets in furtherance of the Communist Party’s efforts to undermine U.S. national and economic security -- including facilitating egregious human rights abuses and a range of military activities -- demands a serious response, and I will continue to work with my colleagues to do just that,” Rubio said in a statement. But a negative determination with respect to the territory’s independence doesn’t mean the U.S. has to revoke the special status entirely. People familiar with the administration’s discussions on its options said officials actually have a lot of flexibility and a spectrum of options, rather than a binary choice to treat Hong Kong exactly like mainland China. The U.S. treats Hong Kong differently from mainland China on tariffs, technology curbs – or export control laws – and on visas. As one potential option, the administration could impose all tariffs it’s levied against Chinese imports on exports from Hong Kong but maintain special treatment of the territory when it comes to sensitive technologies. The U.S. has enacted license requirements for American companies that want to do business with Chinese technology firms, including Huawei Technologies Co. The White House could also sanction individuals involved in curtailing Hong Kong’s democracy, or businesses associated with such actions, before it partly revokes the region’s preferential trade status. The administration has regularly blamed China for failing to prevent the coronavirus from spreading beyond its borders after it was first discovered in the city of Wuhan. The American Chamber of Commerce in Hong Kong said Friday that China’s proposed legislation could lead to a tit-for-tat between Washington and Beijing that eventually curtails Hong Kong’s special treatment. “Hong Kong today stands as a model of free trade, strong governance, free flow of information and efficiency,” said Robert Grieves, the group’s chairman. “No one wins if the foundation for Hong Kong’s role as a prime international business and financial center is eroded.” So, we will see what happens. Both sides in this fight seem to be increasingly dug in, so it will be difficult to disengage, especially as election-year fever makes controversies increasingly difficult. The Hong Kong issue is certainly important and should be watched closely by producers as the season progresses, Washington Insider believes.
| Rural Advocate News | Tuesday May 26, 2020 |
Lawmakers Continue to Push EPA On RFS Waiver Requests More than a dozen Republican senators, including Senate Environment Committee Chairman John Barrasso, R-Wyo., say the EPA has a clear case to waive or significantly reduce the Renewable Fuel Standard’s (RFS) biofuels mandate. In a letter to EPA Administrator Andrew Wheeler on Tuesday, the senators say the cost of complying with the RFS has tripled since the beginning of this year. Republican attorneys general recently urged the EPA to grant petitions from six governors, including one Democrat, to waive the 2020 RFS requirements amid the pandemic. “A failure to grant, in part or in whole, the governors’ petitions would render this provision of the Clean Air Act utterly meaningless,” the senators wrote. “It would be a gross example of a federal agency nullifying an act of Congress.” But biofuel backers led by Sens. Joni Ernst, R-Iowa, and Tina Smith, D-Minn., have written President Trump noting the conditions to waive the RFS have not been met. EPA must be able to demonstrate there is “severe economic harm” from the RFS itself to waive the requirements, a feat the corn state senators said it would not be able to do given the ongoing, widespread economic damage from the pandemic.
| Rural Advocate News | Tuesday May 26, 2020 |
US, China Both Talk Phase One Trade Agreement China is importing U.S. ag and other goods a bit slower than originally hoped for, but the phase-one trade pact is still being successfully implemented, National Economic Council (NEC) Director Larry Kudlow said Thursday. “I guess the Chinese purchases are a little behind, but I think that’s more because of poor economic and market conditions … and China has every intent of implementing (phase one),” Kudlow told the Washington Post. Kudlow said China is not currently looking to renegotiate the trade pact, saying that’s not happening. “At the present time … there’s no renegotiating at all,” he said. “We’re looking for steady implementation and we’ll be monitoring it very closely.” USDA and the U.S. Trade Representative said in an update that Beijing is making progress "despite difficult times for both our countries" with agricultural purchases, exemptions on retaliatory tariffs and approvals of more U.S. exports of farm products. USDA Secretary Sonny Perdue was also upbeat about recent steps China has taken to open its market to U.S. avocados, blueberries, barley, meat, dairy and forage products. The White House released a document on Thursday on the administration’s “strategic approach” toward China, which called the Phase One agreement a sign of “critical progress toward a more balanced trade relationship.” Both sides continue to emphasize that the phase-one agreement continues even as some continue to counter that China is not expected to meet the terms of the agreement.
| Rural Advocate News | Tuesday May 26, 2020 |
Tuesday Watch List Markets After the three-day weekend, futures markets resumed trading Monday evening and traders will be checking the latest weather forecasts and any news on the coronavirus front. At 9 a.m. CDT, April new home sales and a U.S. index of consumer confidence will be released, followed by USDA's weekly report of grain export inspections at 10 a.m. USDA's Crop Progress report at 3 p.m. CDT will update row crop planting progress and winter wheat crop conditions. Weather Moderate to locally heavy rain is in store from the U.S.-Canadian border in North Dakota south to the Texas coast Tuesday. This activity includes the western Midwest. Portions of the central U.S. have already seen very heavy rain and flash flooding over the holiday weekend, including the central and southeastern Plains and portions of the Midwest. A notably drier pattern is featured in the six-to-10-day forecast through early June.
| Rural Advocate News | Friday May 22, 2020 |
U.S. Ethanol Heading to China According to three ethanol-industry sources and shipping data, a rare U.S. ethanol shipment will arrive in China very soon. Reuters says that may be the first ethanol shipment to hit China since the two countries struck a trade deal earlier this year. China recently waived some additional tariffs on almost 700 American products, including ethanol, to support more purchases of U.S. farm goods to help meet its obligations in the Phase One trade deal. Since China made the move, the ethanol industry has been watching for signs of renewed trade in the biofuel. Tariffs on U.S. fuel ethanol were as high as 70 percent after Beijing upped some retaliatory tariffs on U.S. imports in the back-and-forth trade dispute with Washington, D.C. A slump in fuel demand brought on by COVID-19 led to an oversupply of ethanol that caused prices to bottom out, forcing producers to slash their production amounts. One of the three sources to tell Reuters about the shipment says the vessel was carrying ethanol that originated in the United States and had been resold to China, likely from a seller in Saudi Arabia. A trader based in China tells Reuters that, “People are looking to import fuel ethanol from overseas as prices in northeastern China have risen in the past few days.” ********************************************************************************************** EPA Plan Would Raise Biofuel Blending Targets Slightly in 2021 The Environmental Protection Agency has drafted a plan that would include a small bump in their biofuel-blending targets in 2021. Three people familiar with the matter told Bloomberg that the proposed rule is undergoing a White House review. Under the rule, the EPA would require refiners to use 5.17 billion gallons of advanced biofuels in 2021, up from 5.09 billion gallons this year. The plan would include 670 million gallons of cellulosic renewable fuels, such as those made from crop residue, switchgrass, and biogas harvested at landfills, up from the 590 million gallons required in 2020. Refiners would be able to use as much as 15 billion gallons of conventional renewable fuels, including corn-based ethanol, to satisfy the mandate in 2021. In 2022, the EPA draft plan would require refiners to use 2.76 billion gallons of biodiesel, typically made from soybeans and waste cooking oil. That requirement would be up from the 2.43 billion gallons required in 2021. The EPA is expected to propose the quotas in the coming months while facing a deadline of November 30 to finalize the targets. ********************************************************************************************** USDA Providing $1 Billion in Loan Guarantees for Rural Business and Ag Producers Ag Secretary Sonny Perdue says the agency will make up to $1 billion in loan guarantees available to help rural businesses meet their working capital needs during COVID-19. Also, agricultural producers who aren’t eligible for Farm Service Agency loans may receive funding under the USDA Business and Industry CARES Act Program provisions that are included in the Coronavirus Aid, Relief, and Economic Security Act. Other changes will allow USDA to provide 90 percent guarantees on B & I CARES Act Program loans, to set the application and guarantee fee at two percent of the loan, as well as to accept appraisals completed within two years of the loan application date, and extend the maximum term for working capital loans to 10 years. “USDA is committed to be a strong partner to rural businesses and agricultural producers and being a strong supporter of all aspects of the rural economy,” Perdue says. “Ensuring more rural agricultural producers can gain access to much-needed capital in these unprecedented times is a cornerstone of that commitment.” USDA intends to consider applications in the order they’re received, but they may also assign priority points to projects if the demand for funds exceeds availability. ********************************************************************************************** USDA Accepting Applications for 2021 Export Programs The USDA’s Foreign Agricultural Service is accepting applications from eligible organizations for the fiscal year 2021 funding for five export market development programs. FAS recently published the Fiscal Year 2021 Notices of Funding Opportunity for the Market Access Program, Foreign Market Development Program, Technical Assistance for Specialty Crops Program, the Quality Samples Program, and the Emerging Markets Program. The application deadline for all five of the programs is June 26, 2020. Under the Market Access Program, USDA provides competitive, cost-share assistance to U.S. exporters and agriculture, fish, and forest product trade organizations for international marketing and promotion of U.S. commodities and products. Under the Foreign Market Development Program, USDA partners with nonprofit agricultural and forest product trade associations to build longer-term international demand for U.S. commodities. The Technical Assistance for Specialty Crops Program funds projects that address sanitary, phytosanitary, and technical barriers that prohibit or threaten the export of U.S. specialty crops. The Quality Samples Program helps agricultural trade organizations provide small samples of their products to potential importers. As the name implies, the Emerging Markets Program supports technical assistance activities that promote U.S. agricultural, fish, and forest products in emerging markets. ********************************************************************************************** NCGA Working to Find New Uses for Corn The National Corn Growers Association is working hard to find new uses for corn and demonstrating it as the clear feedstock of choice. The availability of corn-based feedstocks and consumer demand represents an opportunity for stakeholders in the sustainable biomaterials industry and will help drive demand for corn higher. NCGA Director of Market Development Sarah McKay says, “The seeds have to be planted along the way to find the next big new uses of corn. It doesn’t just happen overnight.” She says that’s why NCGA works with university researchers, government entities, as well as untraditional partners to prime the pump for innovation and viable uses of corn. NCGA also works with individual companies, innovators, and research groups to engage in conversations and projects together to facilitate these technologies getting to commercialization, while also making sure their consumers understand the value of corn as an industrial feedstock. The NCGA has also held two Consider Corn Challenge contests. Many of the winners have gone on to secure additional funding to get their products to market. The contest winners have developed biosourced materials from corn that are starting materials for various biobased plastics, nylons, polyester resins, and more. ********************************************************************************************** Cotton Council Joins Sustainable Apparel Coalition Cotton Council International announced it had joined the Sustainable Apparel Coalition. It will use the group’s sustainability measurement suite of tools, known as the Higg Index, to drive environmental and social responsibility throughout its supply chain. With its membership in the SAC, the council joins more than 250 global brands, retailers, and manufacturers, as well as governmental, non-profit environmental organizations, and academic institutions. All of the various groups are committed to improving supply chain sustainability in the apparel, footwear, and textile industry. The U.S. cotton industry is committed to continual improvement in sustainability and continues to build upon the strong environmental gains already achieved over the past 35 years. In a release, the Cotton Council International says, “We are pleased to be joining the Sustainable Apparel Coalition and are confident that together we can scale positive impacts on product sustainability over time. We are collaborating with many other groups to enable greater supply chain transparency and informed decision making.” The Sustainable Apparel Coalition says, “Having CCI as part of the Coalition widens the scope of our impact within the industry and accelerates the changes we’re making toward responsible industry actions.”
| Rural Advocate News | Friday May 22, 2020 |
Washington Insider: US, China Escalating War of Words Bloomberg and others are reporting this week that President Trump and President Xi Jinping have escalated their rhetoric sharply. President Trump has actively suggested that China is behind a “disinformation and propaganda attack on the United States and Europe. It all comes from the top,” the president said in a series of tweets this week. He added that China was “desperate” to have former Vice President Joe Biden, the presumptive Democratic nominee, win the presidential race. While the president has often blamed China for failing to prevent the pandemic now ravaging the global economy, he has previously been careful to maintain that his relationship with Xi remains strong. China’s foreign ministry has regularly fired back with similar charges, saying the Trump administration was looking to obscure the facts around the virus to deflect from its own shortcomings. Now, however, the U.S. president and other Republicans have been ratcheting up efforts to paint China as the villain as the U.S. economy drifts into recession and the president’s handling of the crisis is being increasingly criticized. China has denied Trump’s claims that it was trying to damage his chances at re-election in November. The feud has revived the worst-case scenarios concerning U.S.-China ties, Bloomberg said. It thinks the two sides are “edging” closer to confrontation “than at any point since the two sides established relations four decades ago.” From supply chains and visas to cyberspace and Taiwan, the world’s two largest economies are escalating disputes across several fronts that had quieted after they signed a “phase one” trade deal in January. Last week, Chinese foreign ministry spokesman Zhao Lijian sidestepped a question on President Trump’s tweets while attacking Secretary of State Michael Pompeo for his comments about Taiwan and Hong Kong. “Who’s been doing everything possible to ensure people’s lives and health and to promote international anti-virus cooperation?” he said. “The answer is clear as day. The world is a fair judge.” A day earlier, the Chinese military condemned a rare message from Pompeo to Taiwan’s president as “wrong and very dangerous,” vowing to defend Beijing’s claim to the democratically ruled island. Hours later, the White House issued a broad critique of China’s economic and military policies in a report to Congress without detailing specific actions the U.S. will take in response. The U.S. Senate also overwhelmingly approved legislation Wednesday that could lead to Chinese companies such as Alibaba Group Holding Ltd. and Baidu Inc. being barred from listing on U.S. stock exchanges. The Republican-controlled upper chamber had already passed a bill this month that would impose sanctions on Chinese officials over human rights abuses against Muslim minorities. The U.S. president, who had repeatedly praised Xi’s handling of the coronavirus outbreak early on, has passed up recent opportunities to criticize the Chinese president directly. During a TV appearance on May 3, the president described Xi as a “strong” leader with whom he had a good relationship. This week, however, President Trump accused “some wacko in China” on Twitter of deflecting responsibility for the spread of the coronavirus, without elaborating. He accused China of “mass worldwide killing.” Although it was unclear who the President’s reference included in either tweet, Hu Xijin, the editor-in-chief of the Communist Party’s Global Times newspaper, denounced U.S. administration officials as “political hooligans” who don’t care about the lives of more than 100,000 Americans. Chinese Foreign Ministry spokesman Zhao Lijian hewed closely to the usual talking points in his agency’s regular briefing Wednesday. Hu pushed back against Trump’s “wacko” remark in a subsequent tweet, saying “I have never heard of such a wacko in China making this statement” and speculating that the person is “fictional.” He later said Chinese internet users wished President Trump would be re-elected, saying he promotes “unity in China” and makes international news “as fun as comedy.” So, we will see. While this “back and forth” seems unlikely to lead directly to more serious confrontations just now, it certainly doesn’t offer any clear path to declining tensions and a better climate for trade and global market recovery. In the current political and economic climate, the issue of how the coronavirus outbreak was begun and managed in each country likely will continue to be extremely fraught. So the current spat holds at least some danger for both sides and should be watched closely to prevent accidentally crossing the line to a more costly confrontation, as such wars of words sometimes do, Washington Insider believes.
| Rural Advocate News | Friday May 22, 2020 |
EPA’s Wheeler Says No Decisions Yet on RFS Waiver Requests EPA has not yet made any final decisions on the requests from several states for a waiver of Renewable Fuel Standard (RFS) requirements this year, according to EPA Administrator Andrew Wheeler in testimony before the Senate Environment and Public Works Committee. He acknowledged the ethanol industry is facing difficult times, noting he has “talked personally with a number of small refiners all over the country, including I think every small refinery in Wyoming, and we are working with them to see what we can do to help them during this time.” He also noted the fewer miles driven was also an issue and pledged “we have extraordinary circumstances this year and we are looking to see what relieve we can provide everyone.” As for request by states for waivers of RFS requirements, Wheeler said he was “familiar” with the requests, but when asked if a decision on the requests had been made, he replied that “No, we have not yet.” Sen. Joni Ernst, R-Iowa, asked if EPA would look at prior years when waiver requests had been made and were denied, noting that the decision calls on EPA to determine if the RFS is the cause of harm or if it is some other factor like the Saudi-Russia frictions or the COVID-19 situation. Wheeler said that “yes” the agency would look at precedent.
| Rural Advocate News | Friday May 22, 2020 |
Former VP Biden Lashes Out At Trump Administration COVID-19 Response Former Vice President Joe Biden took issue with the Trump administration’s responses to the COVID-19, saying it was a leadership issue. “We don't have a food shortage problem, we have a leadership problem,” Biden said during a webinar event with Rep. Ron Kind, D-Wis. “From the start, [President Donald Trump] has failed to support food producers,” he argued, saying among other things that the administration was “slow to order the government to buy food from farmers and send that food to food banks” as the crisis took hold. He said a Biden administration would have stepped up purchases of milk and other commodities where surpluses have arisen due to the restaurant shutdowns cutting food service demand. He also criticized the Trump administration for its trade policy, saying it has made the U.S. a “bad partner.”
| Rural Advocate News | Thursday May 21, 2020 |
March Margin Triggers Dairy Margin Coverage Program Payment The Department of Agriculture’s Farm Service Agency announced this week that the March triggered the first payment to dairy farmers enrolled in the Dairy Margin Coverage program. The March income over feed cost margin was $9.15 per hundredweight. Current projections indicate that a DMC payment is likely to trigger every month for the remainder of 2020, a different expectation from last July when some market models had forecast no program payments for 18 months. FSA Director Richard Fordyce says the payment “comes at a critical time for many dairy producers,” noting it’s the first payment to dairy producers in seven months. Authorized by the 2018 Farm Bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price falls below a certain dollar amount selected by the producer. Although DMC enrollment for 2020 coverage has closed, dairy producers should look for FSA to open sign up for 2021 coverage in July. ************************************************************************************ Growth Energy Lauds Introduction of Biofuels Relief Bill in Senate Growth Energy praised the introduction of legislation that would assist biofuel producers impacted by the COVID-19 pandemic. Iowa Republican Senator Chuck Grassley along with Minnesota Democratic Senator Amy Klobuchar introduced the legislation Tuesday. Specifically, the bill would require the U.S. Department of Agriculture to reimburse biofuel producers for their feedstock purchases in the first quarter of 2020 through the Commodity Credit Corporation. Growth Energy CEO Emily Skor says the proposal would “deliver immediate relief for biofuel workers, farm partners, and thousands of rural communities.” The legislation follows numerous appeals from Growth Energy and other farm and biofuel leaders, lawmakers and local governments. As the coronavirus pandemic spread, gasoline use in the United States plummeted to 50-year lows around the country. From March 8 to April 4 of this year, total miles driven dropped by 58 percent. The rapid decrease in consumption has led more than 130 biofuel plants to partially or fully shut down in rural America. ************************************************************************************ Ag Retailers: New EPA Transparency Rule a Positive Step for Agriculture The Agricultural Retailers Association calls a proposed rule on transparency by the Environmental Protection Agency a positive step forward for agriculture. This week, the EPA announced the proposal to establish requirements and procedures for the issuance of guidance. ARA President and CEO Daren Coppock says the proposal "will not only provide the opportunity to be sure that our voices are heard but will also ensure that new rules are guided by sound science, practicality and economic feasibility.” Last Fall, President Trump issued an executive order to promote transparency by ensuring all active guidance documents are made available to the public. The EPA says the rule will significantly increase the transparency of EPA’s practices around guidance and the agency’s process for managing guidance documents. The rule will establish the first formal petition process for the public to request that EPA modify or withdraw a guidance document, and ensure that the agency’s guidance documents are developed with appropriate review and are accessible and transparent to the public. ************************************************************************************ American Farmland Trust Releases Farmland Report Millions of acres of America’s agricultural land were developed or converted to uses that threaten farming between 2001 and 2016, according to American Farmland Trust. The organization this week released a report on U.S. farmland. The report’s Agricultural Land Protection Scorecard is the first-ever state-by-state analysis of policies that respond to the development threats to farmland, showing that every state can, and must, do more to protect their agricultural resources. The report shows the extent, location, and quality of each state’s agricultural land and tracks how much of it has been converted. The research also reveals a new threat of land use of low-density residential development, the process of farmland being converted to large-lot residential development. American Farmland Trust says low-density residential development compromises opportunities for farming and ranching, making it difficult for farmers to get into their fields or travel between fields. Additionally, new residents not used to living next farms often complain about equipment on roads or odors related to farming. The full report is available at farmland.org. ************************************************************************************ AVMA Applauds Dog Import Inspections Bill The American Veterinary Medical Association recently announced its support of the Healthy Dog Importation Act. The legislation seeks to ensure that dogs entering the United States do not pose a health risk to humans or other animals. Sponsored by three veterinarians in Congress, provisions of the act would give the U.S. Department of Agriculture new tools and authority to monitor and safeguard the health of dogs being imported, ensuring that dogs are in good health and not a risk to spread dangerous diseases that could impact animal and public health. AVMA President Dr. John Howe says, “For far too long, dogs have been entering the United States without proper inspection, increasing the risk of disease introduction and transmission.” Up to 1.2 million dogs are estimated to be imported into the United States each year. The legislation would require every dog entering the U.S. to have a certificate of veterinary inspection, as well as certification that the dog has all the required vaccinations as well as negative test results for illness. ************************************************************************************ SNAP Online Purchasing to Cover 90% of Households Agriculture Secretary Sonny Perdue this week approved 13 states for online food purchases with Supplemental Nutrition Assistance Program benefits. Once operational, online purchasing will be available in 36 states and the District of Columbia, home to more than 90 percent of SNAP participants. Perdue also announced an expansion of independently owned and operated retail stores beyond those included in the original pilot. Soon more SNAP authorized retailers, under multiple store banners, will be accepting SNAP benefits online. Perdue says online food purchases “will go a long way in helping Americans follow CDC social distancing guidelines.” On April 18, 2019, Perdue announced the launch of the two-year SNAP online purchasing pilot that began in New York before being rolled out to additional states. In less than six weeks, amidst an unprecedented situation, USDA has expanded SNAP online purchasing to 36 states and the District of Columbia. Currently, the SNAP online purchasing pilot is operational in 18 states and the District of Columbia, with additional states going live each week.
| Rural Advocate News | Thursday May 21, 2020 |
Washington Insider: Slow Economic Rebound Keeps Focus on Fiscal Aid Bloomberg is reporting this week that high U.S. unemployment likely means “that the chance of an immediate economic bounce back from the coronavirus appear slim.” As a result, lawmakers are said to agree they’ll need to provide further fiscal aid, even as partisan rifts remain over how and when to act. Unemployment is expected to average 15.1% in the second quarter and 15.8% in the third quarter of 2020, before gradually dropping to 8.6% in the last quarter of 2021. It is projected to average 11.5% in 2020 and 9.3% in 2021. CBO reported this week that U.S. real GDP is projected to contract by 11.2% in the second quarter of 2020 and by 5.6% for the year. The longer-term unemployment projections are slightly more optimistic than those CBO released in April but they still portend high unemployment rate for more than a year and a half. The report “makes it clear that we are facing a severe and prolonged economic downturn and Congress must keep pushing forward to fight the pandemic, soften the blow to our economy, and stand with the American people to build a strong recovery,” House Budget Chairman John Yarmuth, D-Ky., said. Congressional Republicans continue to say they aren’t in a rush to pass another economic package, while House Democrats continue to call on the Senate to take up its $3 trillion measure. A proposal from Speaker Nancy Pelosi, D-Calif., to extend increased unemployment benefits through January 2021 will likely face resistance from Republicans, who are concerned that the extra $600 per week will encourage workers to stay home and slow the reopening of the economy, Bloomberg said. However, the report also says that Republicans don’t plan to oppose additional legislation indefinitely, but believe they need to assess what already has been done and “discuss the way forward,” Senate Majority Leader Mitch McConnell, R-Ky. told the press this week. There will need to be some sort of additional federal support “for several months,” Sen. Marco Rubio, R-Fla., said at a conference hosted by the American Enterprise Institute last week. Rubio, chairman of the Small Business Committee and a key proponent of aid to small businesses, said business closures, limited international travel and a lack of consumer confidence likely will be a damper on the economy “for a while.” There is a risk of long-term economic damage because of the virus, Federal Reserve Board Chairman Jerome Powell told lawmakers at a Senate Banking Committee virtual hearing at midweek. He said he’s concerned about “the risk of lasting damage to the productive capacity of the economy, as a result of longer-term unemployment, and from unnecessary, avoidable insolvencies by small- and medium-sized businesses. Those two things create a real risk.” Growth is expected to rebound in the third quarter of the coming year, when CBO projects 5% real GDP growth. But economic output is still projected to be lower throughout 2020 and 2021 than it was at the end of 2019. CBO estimated the leisure and hospitality sector shed 48.3% of its jobs, 8.6 million lost in total, in March and April. Bloomberg also commented that Congress may need to step in to help the U.S. Citizenship and Immigration Services “to prevent the agency from furloughing workers,” acting Homeland Security Secretary Chad Wolf told the Chamber of Commerce this week. USCIS pays for 97% of its budget with fees, but those monies have fallen off “significantly” during the coronavirus, Wolf said. “We’re going to need some help from Congress on making sure that USCIS does not have to furlough individuals and can keep them running.” Wolf said. He wants to be able to pay the cash back once receipts come back as the economy reopens, he said. In the meantime, Progressive House Democrats say they are looking to cut defense spending in the face of the pandemic, arguing they have the votes to defeat the fiscal 2021 defense authorization legislation if House Armed Services Committee leaders don’t reduce Pentagon’s funds from this year’s $738 billion. Nearly 30 Democrats, led by Progressive Caucus Co-Chair Mark Pocan, D-Wis., are demanding the reduced budget in a letter this week. So, we will see. Clearly, there is still strong support for shoring up coronavirus damaged economic sectors. At the same time, push-back appears to be growing with each new proposal, although the team of Federal Reserve Chairman Jerome Powell and key administration officials appears to be able to continue to provide crucial support to a number of the main stressed sectors to aid coronavirus recovery Washington Insider believes.
| Rural Advocate News | Thursday May 21, 2020 |
USDA Sets Details of CFAP Sign-up USDA unveiled the Coronavirus Food Assistance Program (CFAP) details, providing a list of eligible commodities, those commodities that are not eligible, payment limits and other information on the effort that will provide $16 billion in direct payments to farmers and ranchers suffering at least a 5% price decline over a specified period. USDA has not provided a lot of specifics on how the payments will work, creating confusion in the ag industry. The fact that two pools of money are being used is causing confusion. Those pots of money include $9.5 billion under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and $6.5 billion in authority under the Commodity Credit Corporation (CCC) Charter Act. There are two payment rates involved in the calculations for what are labeled non-specialty crops such as corn, soybeans and more. There is also a list of commodities that were not deemed eligible as they had not suffered a 5% decline in prices over the period from mid-January to mid-April, but USDA will seek comments on crops excluded and may add them into the mix down the road.
| Rural Advocate News | Thursday May 21, 2020 |
Trump Suggests Halting Cattle Imports In announcing farmer aid efforts, President Donald Trump Tuesday also singled out cattle imports as a recent topic of discussions in the administration. “Today where we take some cattle in from other countries, because we have trade deals, I think you should look at terminating those deals,” he said. “There are some countries that are sending us cattle for many years," he said. "We're very self-sufficient, and we're becoming more and more self-sufficient.” He also asked USDA Secretary Sonny Perdue as to why the U.S. was bringing in cattle. Perdue responded by emphasizing existing U.S. trade relationships and noting that countries exporting cattle to the U.S. have “been working with us for many years.” While agreeing with Perdue’s assessment, Trump said, “generally speaking, unless this is a country that really has been with us, we shouldn’t be taking their cattle … and that’s the way we’re going to handle it.” The National Cattlemen’s Beef Association indicated in a statement they said the situation underscores the complexity of the U.S. trade situation.
| Rural Advocate News | Thursday May 21, 2020 |
Thursday Watch List Markets Thursday is busy with reports, starting with weekly export sales, U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CDT. Reports on April existing home sales and leading indicators are at 9 a.m., followed by natural gas inventory at 9:30 a.m. CDT. USDA's monthly cold storage report is set for 2 p.m. CDT. Weather Moderate to heavy rain with flooding will continue in portions of the southeastern U.S. Thursday. Meanwhile, a rainy period will begin in the Plains with prospects for moderate to heavy amounts and flood threat, mainly in south-central and southeastern Plains areas. Northern Plains areas will also have showers with continued pressure on fieldwork and the likelihood of prevented planting.
| Rural Advocate News | Wednesday May 20, 2020 |
CFAP Payment Breakdown - USDA Spells Out Payment Details and Formula for Coronavirus Aid GLENWOOD, Iowa (DTN) -- USDA officials on Tuesday provided more extensive details on the payment plan for producers under the Coronavirus Food and Aid Program (CFAP). The payment details are complicated, depending on whether livestock or crops are involved and whether producers had sold their commodities within a timespan from Jan. 15 to April 15 of this year. Farmers and livestock producers will initially receive 80% of their calculated payment under CFAP. USDA right now has $9.5 billion from the Coronavirus Aid, Relief and Economic Security (CARES) Act and $6.5 billion in funds from the Commodity Credit Corp. USDA officials on Tuesday acknowledged the aid available right now will not meet all of producers' expected losses. "To get the program out quickly, we're using all of those resources that we can," USDA Chief Economist Robert Johansson said on a call with reporters Tuesday. "But it certainly will not rise to the level of the damages we're expecting to see for agriculture and producers as a result of the coronavirus." USDA is expected in July to have at least another $14 billion to tap from the Commodity Credit Corp., barring any further additional legislation passed by Congress. Local Farm Service Agency offices can start accepting applications on Tuesday, May 26. Farmers and livestock producers will have to set up phone-call appointments with FSA staff because they are not accepting in-person visits due to coronavirus restrictions. Producers can also communicate with staff through email or go online to fill out applications. LIVESTOCK Cattle producers will be the largest recipients of aid at roughly $5 billion. The payments break down several different ways depending on the type of cattle, if they were sold from Jan. 15 to April 15: -- Fed cattle for slaughter: $214 per head. -- Slaughter cows and bulls: $92 a head. -- Feeder cattle under 600 pounds: $102 a head -- Feeders over 600 pounds: $139 a head -- All other cattle: $102 a head For payments, USDA will require producers to document the number of head a producer sold from that Jan. 15-to-April 15 time frame. Unpriced cattle in inventory from April 16 to May 14 receive a flat rate from the Commodity Credit Corp. of $33 a head. Producers can basically pick a date of their choosing in that time frame and report their inventory to USDA. Pigs sold from Jan. 15 to April 15 have a payment rate of $28 a head while hogs sold during that time have a payment rate of $18 a head. Unsold hogs and pigs in inventory from April 16 to May 14 have a payment rate of $17 a head. USDA also right now does not have any payment indemnity in the CFAP for euthanized hogs. USDA officials repeatedly noted the only aid for those livestock would be support for disposal from USDA's Natural Resources Conservation Service. Lambs and yearlings also have a CARES payment of $33 a head and a CCC payment of $7 a head. Dairy farmers will be paid on a certification of their first-quarter production with $4.71 per cwt coming from the CARES Act. A second payment based on second-quarter production will also be multiplied by 1.014, then a payment will be made for $1.47 per cwt from the Commodity Credit Corp. Left out of the program were contract poultry growers. USDA officials said farmers would have to show ownership of the commodity to receive a payment. COMMODITY CROPS For commodity crop producers, payments are eligible for unpriced crops, or "inventory held subject to price risk" that a farmer held on Jan. 15, 2020. "If you already sold it ahead, you set a price on it, then that's not being impacted by the reduction of prices," said Bill Northey, USDA's undersecretary for farm production and conservation. The inventory will be self-certified, Northey said, though there will be some compliance audits conducted, he said. "We want it to be correct, but we want to avoid large amounts of paperwork at the county office," he said. Northey added, "We just need a final inventory." A producer will be paid on that commodity in storage, but the inventory cannot be higher than 50% of total 2019 production that the producer reported to the Farm Service Agency. Effectively, a farmer who grew 100,000 bushels or more in 2019 and has 50,000 bushels of 2019 corn in storage, unsold, on Jan. 15 would be paid on the 50,000 bushels Yet, it is more complicated the way the rule is spelled out. Half of that 50,000 bushels would be paid 32 cents from the CARES Act, and the other 25,000 bushels would be paid 35 cents from the Commodity Credit Corp. Essentially, USDA officials explained, when it is boiled down, the 50,000 bushels would be multiplied by 33.5 cents. That breaks down to 50,000 x 0.335, or $16,750. For soybeans, the payment rates are 45 cents a bushel from the CARES Act and 50 cents a bushel from CCC. A farmer with 50,000 bushels unsold in storage from the 2019 harvest on Jan. 15 would be paid on 25,000 bushels at 45 cents a bushel. The other 25,000 bushels would be paid at 50 cents a bushel. That equates to $23,750 (50,000 x 0.475). For hard red spring wheat, the payments are set at 18 cents a bushel from CARES and 20 cents from CCC. Durum wheat is 19 cents from CARES and 20 cents from CCC. Barley is 34 cents from CARES and 37 cents from CCC. Upland cotton is 9 cents a pound from CARES and 10 cents a pound from CCC. PAYMENT LIMIT CHANGES Payment limits have been adjusted under the CFAP as well. Payment limits are raised to $250,000 per individual, raising the limit for a married couple to $500,000. Another change affects corporations, which typically receive one payment limit. Under CFAP, corporations, limited liability corporations and partnerships with members and shareholders can receive up to three payments if they have members or shareholders who contribute at least 400 hours of active personal labor or management. So those corporate entities could receive a maximum of $750,000 in payments if three members can meet those actively engaged standards, Northey said. Once USDA determines a producer's payment, the department will make a payment of up to 80% of the total within a week. "We believe those payments can go out within a week of when we open up here," Northey said. Another 20% payment will be held back for later in the year, depending on when funds become available. Payment adjusted gross income is capped at $900,000 for producers, unless they can show at least 75% of their income is derived from farming, ranching or forestry. Greg Ibach, undersecretary for marketing and regulatory programs at USDA, said specialty crop producers -- fruit and vegetable growers -- would be paid based on multiple factors. Producers would receive a payment for crops sold from Jan. 15 to April 15. A different payment is established for specialty crop producers who harvested and shipped crops, but they spoiled because of lost markets over that time. Ibach also said USDA is looking for details from farmers on the impacts they received raising nursery products or aquaculture products, if those producers can show a 5% market decline for their products.
| Rural Advocate News | Wednesday May 20, 2020 |
USDA Announces Details of Coronavirus Food Assistance Program The Trump administration Tuesday announced the rollout of the Coronavirus Food Assistance Program, which will provide up to $16 billion in direct payments to farmers and ranchers. Beginning May 26, the Department of Agriculture will be accepting applications from farmers who have suffered losses of five percent or more. The funds come from the $9.5 billion in appropriated funding provided in the CARES dedicated to agriculture and $6.5 billion from the Commodity Credit Corporation. Farmers will receive a combined total from CFAP and the CCC of 95 cents per bushel for soybeans, and 67 cents for corn. The payment rate for cattle is $247 per-head of slaughter cattle, $171 per-head of feeder cattle over 600 lbs, and $45 for hogs under 120lbs. There is a payment limitation of $250,000 per person or entity. Producers will receive 80 percent of their maximum total payment upon approval of the application. The remaining portion of the payment will be paid later. Producers can apply through their local FSA office, and applications will be accepted through August 28, 2020. Additional information and application forms can be found at farmers.gov/cfap. ************************************************************************************ CFAP Welcomed, But More Relief Needed Agriculture groups welcomed the rollout of the Coronavirus Food Assistance Program direct payments but say farmers will need more relief. National Corn Growers Association President Kevin Ross says, “This assistance is a first step to getting farmers, and our customers, back on solid footing.” American Farm Bureau Federation President Zippy Duvall calls the program critically important, adding, “long-term effects of this pandemic are still rippling through the farm economy.” AFBF points out that farm bankruptcies increased 23 percent in March 2020 compared to a year earlier, bankruptcies that occurred before the pandemic dropped commodity prices. National Cattlemen’s Beef Association President Marty Smith adds, “this is just one step and much more needs to be done.” Details behind the $16 billion in direct payments were announced at the White House Tuesday. The Department of Agriculture is expected to utilize an additional $14 billion for relief funds to farmers and ranchers later this summer. ************************************************************************************ NCBA Responds to Trump Comments on Beef Imports President Donald Trump at the White House Tuesday suggested the United States should consider terminating trade deals that bring live cattle into the United States. Most cattle imported into the United States come from Mexico and Canada, thus falling under Trump’s new U.S.-Mexico-Canada Agreement. However, a recent Trump administration decision to allow fresh beef imports from Brazil is something the National Cattlemen’s Beef Association urged the President to reconsider. The association says there continue to be concerns with foot-and-mouth disease and USDA’s decision to reopen the American market to Brazilian beef. Approximately 12 percent of beef consumed in the U.S. is imported product, but that product must meet the U.S. standards before allowed into the market. Woodall adds, “We encourage him to re-examine the decision to reopen the market to imports from Brazil, Namibia (Nuh-MIB-be-uh), and any other nation where there are food safety or animal health concerns that could impact American consumers or cattle producers.” ************************************************************************************ Survey Reveals COVID-19 School Meal Trends, Financial Impacts Fresh data from the School Nutrition Association reveals significant concerns about the financial sustainability of school meal programs. The second installment of a survey effort by the association found COVID-19 closures have had a dramatic impact on school meal program budgets. Financial losses to the school nutrition program ranked as respondents' top concern, cited by 90 percent as a serious or moderate concern. 861 school districts reported combined estimated financial losses of more than $626.4 million. School meal programs routinely operate on extremely tight budgets, funded by cafeteria sales and reimbursements for meals served. With schools closed and stay at home orders in place, fewer meals are served. The survey yielded responses from school nutrition professionals working on the frontlines to feed hungry students in 1,894 school districts nationwide. Conducted from April 30 – May 8, the survey shows 95 percent of respondents were engaged in emergency meal assistance, and combined, these districts reported serving more than 134 million meals in April alone. ************************************************************************************ Chesapeake Bay Foundation to Sue EPA The Chesapeake Bay Foundation and its partners filed a notice of intent to sue the Environmental Protection Agency this week. The Foundation plans to sue the EPA "for its failure to require Pennsylvania and New York to develop implementation plans that will achieve the 2025 Bay restoration goals." The Attorneys General in Maryland, Virginia, and the District of Columbia also filed a notice that they intend to sue EPA as well. CBF President William C. Baker says the EPA has “failed to implement the Chesapeake Clean Water Blueprint.” CBF has used litigation previously to advance Bay restoration efforts. In 2009, CBF sued EPA for its failure to enforce the Clean Water Act and ensure that Bay restoration succeeds. The settlement of that lawsuit included the science-based limits established by EPA for pollution fouling the Chesapeake Bay and its rivers and streams. The states developed individual plans to achieve those limits and committed to two-year milestones that outline the actions they will take to achieve those limits by 2025. ************************************************************************************ Farm Journal Announces New Farm Show Farm Journal this week announced the launch of a new "COVID-conscious" farm show experience called Farm Journal Field Days, set for August 25-27, 2020, on farms in eastern Iowa and northwest Ohio. The interactive Farm Journal Field Days includes a three-day Virtual Pavilion that runs concurrent with full-day on-farm demonstrations and programming. The on-farm sessions will be hosted August 25 at Blue Diamond Company farm in Jesup, Iowa, and August 27 at Newcomer Farm in Bryan, Ohio. Up to one hundred Top Producers will be voluntarily selected to participate in person on each farm with beyond-recommended social distancing rules, but in a highly personal, interactive experience. The first annual Farm Journal Field Days will encompass equipment, crops, livestock and technology with a focus on bringing buyers and sellers together in different and unique ways. The format will include one-on-one and group settings to observe innovations in practice, as well as interactive educational and sales methods. The on-farm programs and Virtual Pavilion will be promoted across Farm Journal's digital and broadcast footprint.
| Rural Advocate News | Wednesday May 20, 2020 |
Washington Insider: Cloudy Trade Outlook Washington in entering a kind of “deep tea leaf reading period” on trade these days and analysts are scanning scenarios that are unusually deep in shadows. For example, Bloomberg is reporting that the outlook for trade fights just now “should be read with some skepticism.” It says the prospect includes the “deteriorating relationship between the U.S. and China," but that those tensions may not lead to the collapse of the small trade peace Beijing and Washington signed up for in January. The report asks whether we may be entering the do-nothing phase of the administration’s trade wars? It’s possible, Bloomberg says. It thinks that “there is little doubt that China is going to struggle to live up to its purchase commitments to the United States this year under the phase one deal that the two sides signed in January,” and cites a new tracker from Chad Brown at the Peterson Institute for International Economics as evidence. Brown thinks Chinese purchases “would have to accelerate significantly to hit the deal’s targets for 2020,” but thinks that isn’t surprising given that the Chinese economy is still slowly emerging from a coronavirus-induced shutdown earlier this year. That observation is leading “some to argue the deal is poised to collapse.” However, Bloomberg says, “what’s the alternative?” The report thinks that, “in reality,” there’s not much the administration can do right now even as the relationship with China deteriorates.” So, Brown thinks that the administration’s options for action are not good. Walking away would literally mean going back to Plan A, which is mainly “hitting China with yet more tariffs.” That would mean “whacking” the same consumer goods like smartphones that the administration had lined up as targets late last year. And, just the suggestion of that step caused angst in financial markets and among consumers last year. What would it do now in the middle of a global economic crisis?” It also would mean more Chinese retaliation and the loss of even any prospect of increased sales for already-hurting American farmers. In reality, Brown says, is that because of the northern hemisphere’s cultivation calendar the big Chinese agricultural purchases were always going to come later this year. Walking away from that deal now after farmers have planted “with the Chinese buying spree in mind” would lead to more pain a few months from now. The smart play for the time being looks to be for the administration to do nothing other than encourage China to buy more. Brown thinks that would allow those around the president to aim plenty of rhetorical venom at Beijing, of course.” Bloomberg also takes note that there likely will be a different set of “machinations” underway in the WTO, where Director-General Roberto Azevedo unexpectedly announced plans to step down Aug. 31, a year before his term expires. However, the “result may well be the same,” Bloomberg thinks. There is no obvious candidate for the U.S. to support to succeed Azevedo, it notes. Moreover, there is no obvious need for the U.S. to push for any action unless it can extract a price from the WTO’s other member nations. “That’s especially true when members of the administration’s own party are calling for the abolition of the WTO.” Robert Lighthizer, the administration’s trade czar, is a longtime skeptic of the WTO and someone who has demonstrated a penchant for using “time and the lack of action to get what he wants,” Bloomberg says. He has worked to hobble the WTO’s dispute-resolution function by simply blocking the appointment of new judges and allowing the clock to run out. Like it or not, leaving the WTO in the hands of an acting director-general and institutional limbo for some time could actually be a way for the U.S. to build leverage ahead of a negotiation of overall reforms, or in advance of a broader negotiation of new tariff levels, Bloomberg says. Especially when the rest of the world has greater fondness for the WTO than the U.S. has right now. The rest of the world, meanwhile, is also likely to be happy to wait until after November’s U.S. presidential election to deal with a Biden presidency. None of that is especially good for the WTO, or a world economy that has seen global trade savaged by a pandemic, Bloomberg says. But the WTO is a sideshow right now. And, for the time being, inaction is easier than action. Which is an overarching truth in the administration’s trade wars. So, we will see. Certainly, the longer-term prospect for global trade is not exactly rosy even though the immediate battles could be damped down for a while. It is still true that export markets have much greater growth potential than domestic ones do for U.S. producers, and that while trade issues are always thorny, they continue to be valuable to producers and should continue to be cultivated wisely where that is possible, Washington Insider believes.
| Rural Advocate News | Wednesday May 20, 2020 |
SBA Publishes Changes Making Some Rural Electric Co-Ops Eligible For PPP The Small Business Administration (SBA) Tuesday published in the Federal Register updates made to the Paycheck Protection Program (PPP) to clarify that some rural electric cooperatives will be eligible to utilize the program. The PPP is intended to provide economic relief to small businesses nationwide adversely impacted by COVID-19, and the SBA published an interim final rule that “supplements the previously posted interim final rules by providing guidance on additional eligibility requirements for certain electric cooperatives, and requests public comment.” The measure covers applications submitted under PPP through June 30, 2020, or until funds for the program are exhausted.
| Rural Advocate News | Wednesday May 20, 2020 |
Some State Attorneys General Express Support For Waiving RFS Requirements Requests by some states for EPA to waive the biofuel requirements under the Renewable Fuel Standard (RFS) this year “is clearly justified by law and circumstance,” according to a letter signed by seven state attorneys general to EPA Administrator Andrew Wheeler. Noting the regulatory relief being offered by the Trump administration in several areas, the officials argued that the biofuel sector is another where such an action is warranted. “Chemical refiners are crucial to advanced economies and provide economic support for both states and workers’ families alike,” the officials said. “These hard-working Americans are named ‘critical infrastructure workers’ by the Cyber and Infrastructure Security Agency, meaning they fill an economic need vital to economic and national security.”
| Rural Advocate News | Wednesday May 20, 2020 |
Wednesday Watch List Markets A steady return of gasoline demand has been one of the few hopeful indicators for the economy lately. Wednesday's weekly energy inventory report from the U.S. Energy Department will update gasoline demand, ethanol production and ethanol inventory. The usual topics of weather, exports and livestock slaughter levels will also be watched. Weather Moderate to heavy rain is in store for the southeastern U.S. Wednesday, with flooding threats and some crop washing out. Some of this rain will also reach the Ohio Valley and continue a very wet event in the southeastern Midwest. We'll also see periods of rain in the interior Northwest with some flood threat as well. Other crop areas will be dry.
| Rural Advocate News | Tuesday May 19, 2020 |
Trump: COVID-19 aid signups begin May 26 President Trump touts farmer COVID-19 aid program during White House event Tuesday morning. During a White House event Tuesday morning, President Donald Trump was joined by Secretary of Agriculture Sonny Perdue, daughter Ivanka Trump and farmers to discuss the latest efforts to offer a lifeline to farmers as well as families in need of food during the current coronavirus pandemic. Beginning May 26, the U.S. Department of Agriculture, through the Farm Service Agency (FSA), will be accepting applications from agricultural producers who have suffered losses. Trump said checks will be issued within a week of receiving applications. Farmers and ranchers will receive direct support, drawn from two possible funding sources. The first source of funding is $9.5 billion in appropriated funding provided in the Coronavirus Aid, Relief & Economic Stability (CARES) Act to compensate farmers for losses due to price declines that occurred between mid-January 2020 and mid-April 2020 and provides support for specialty crops for product that had been shipped from the farm between the same time period but subsequently spoiled due to loss of marketing channels. The second funding source uses the Commodity Credit Corp. Charter Act to compensate producers for $6.5 billion in losses due to ongoing market disruptions. Livestock eligible for the Coronavirus Food Assistance Program (CFAP) include cattle, lambs, yearlings and hogs. The total payment will be calculated using the sum of the producer’s number of livestock sold between Jan. 15 and April 15, 2020, multiplied by the payment rates per head, and the highest inventory number of livestock between April 16 and May 14, 2020, multiplied by the payment rate per head. For dairy, the total payment will be calculated based on a producer’s certification of milk production for the first quarter of calendar year 2020, multiplied by a national price decline during the same quarter. The second part of the payment is based a national adjustment to each producer’s production in the first quarter. Eliminating live beef imports While speaking at the White House, Trump also made several statements about the need to terminate trade deals that allow imported cattle to come into the U.S. In the most recent trade data released by USDA on May 6, only Canada and Mexico exported live cattle to the U.S., with a total of 213, 279 total animals imported for March 2020, down slightly from 245,875 imported in March 2019. “There are some countries sending us cattle,” Trump said during his remarks. “I think we should look at terminating those trade deals. We’re very self-sufficient, and we should be more self-sufficient.” He recognized that it is a “relatively small number” of cattle coming in, but with the tremendous supplies from U.S. producers, Trump questioned why cattle are being brought in from other countries. He said if the countries have been great allies, then maybe the trade shouldn’t stop, but he added, “Sometimes, we needed the cattle, and sometimes we don’t.” Producer support The White House event also featured a handful of Virginia agricultural producers representing different segments of the agricultural supply chain and leaders of commodity groups. “This pandemic made us realize one thing: We live in a land of plenty,” American Farm Bureau Federation president Zippy Duvall said. He said the food chain is plentiful but also acknowledged that, as a nation, we have to be able to feed our own people and can’t afford to be fed by other countries. Duvall said without the government support, farmers wouldn’t be able to produce food. Scott Sink, a beef and vegetable producer from Virginia, said his business caters to the farm-to-table restaurant segment. He was able to benefit from the Payroll Protection Program and said now the direct aid for farmers offers a “bridge” to help his operation get into the new growing season. Robert Mills Jr., a first-generation diversified farmer from Virginia who grows tobacco, beef, poultry and industrialized hemp, said his farm is diversified because he always expects the unexpected, yet this pandemic could never be expected. The aid offers him a way to stay in business and noted that it is not a “rescue program” but a way to help farmers make good, wise financial decisions. Marty Smith, president of the National Cattlemen’s Beef Assn., said the executive order executed by the President at the end of April to keep meat plants open is starting to have an impact by allowing packers to get back on line and fill grocery shelves again. “We work around the clock to feed the public. What we’ve done with the current program enables us to stay in business,” Smith said. In later comments, Trump noted that meat packing plants are “very clean” and that fewer problems are being seen. “If we didn’t act, we would have had a big problem,” Trump noted, adding that the Administration’s decision to act early was crucial.
| Rural Advocate News | Tuesday May 19, 2020 |
Senators Seek Meat Worker Protections From USDA Senate Democrats want Agriculture Secretary Sonny Perdue to provide more worker safety protection to meat processing employees. A group of 29 Senators, led by Democrat Debbie Stabenow of Michigan, penned a letter to Perdue outlining recommendations for ways the Department of Agriculture should improve worker safety. The Senators wrote, “While we recognize the importance of keeping these plants running, it is wrong and shortsighted to use the Defense Production Act to mandate plants to stay open without effectively addressing worker safety issues.” The group says that while the Trump administration has applauded the reopening of several plants, USDA officials in congressional briefings could not confirm that the plants were operating in accordance with CDC and OSHA guidance. The Senators urged USDA to ensure that meatpacking plants take sufficient actions to protect worker safety before opening, including reconfiguring the plants to allow for social distancing, providing appropriate personal protective equipment, instituting ongoing testing, ensuring that infected employees are not coming to work, and making other necessary changes to keep workers safe. ************************************************************************************ Farm Assets Resisting Coronavirus Impact COVID-19 may be hurting many areas of the U.S. economy, but strong demand has continued for tractors, combines and other farm assets, according to a spring report from Steffes Group. During the first four months of 2020, the company conducted 170 auctions, all of which were successful. The company is conducting online auctions exclusively during the "shelter in place" period and has conducted online-only auctions for 11 years. Demand was strong for tractors, combines and sprayers throughout the period, regardless of the auction method. The company says well-maintained equipment with low hours commanded a strong premium. Even older machines did well in many cases, with sharp rises in tractors 15 years and older, showing great care. Land values have been strong, but with some weak spots. Premium land still commands premium prices, and land values continue to benefit from historically low interest rates. Steffes Group provides services throughout the upper Midwest, including Iowa, North Dakota, South Dakota, Minnesota, Wisconsin, Montana, Illinois and Nebraska. ************************************************************************************ NPPC Gains DOJ Approval For Industry Collaboration To Address COVID-19 Crisis On Friday, the U.S. Department of Justice's Antitrust Division provided guidance for collaboration among U.S. hog farmers. The guidance will help farmers effectively address unprecedented challenges brought on by the COVID-19 pandemic. The favorable decision for NPPC is in response to a "business review" letter submitted to the DOJ by the organization. The review seek permission to allow hog farmers greater flexibility in working to maximize the number of hogs entering the food supply, minimize the tragic need to euthanize hogs, and, facilitate the safe and orderly euthanization of those hogs which are not able to enter the food supply. NPPC President Howard AV Roth, a farmer from Wisconsin, says, "Our goal is to efficiently process as many hogs as possible into the food supply." Roth says appropriate collaboration across the industry and with state and federal government officials will minimize the number of pigs that must be euthanized and ensure that the situation is handled humanely, and that disposal is environmentally sound. ************************************************************************************ ISITC Investigation Competition in Raspberry Industry The U.S. International Trade Commission is seeking input for a new general factfinding investigation on the U.S. raspberry industry in Washington state. The investigation announced last week will look into the conditions of competition between U.S. and foreign suppliers of raspberries meant for processing. The investigation was requested by U.S. Trade Representative Robert Lighthizer in a letter received on April 9, 2020. The investigation will provide an overview of the U.S. raspberry industry in Washington State, including fresh raspberries for processing, frozen raspberries, and raspberry juice, as well as an overview of the industries producing fresh and processed raspberries in major producing and exporting countries, among other findings. The Commission is seeking input for the investigation from all interested parties and will hold a public hearing in connection with the investigation in September. The U.S. International Trade Commission expects to transmit its report to the Lighthizer no later than June 9, 2021. ************************************************************************************ Research Shows More Children May Face Hunger Next Year The number of people in the U.S. who are food insecure will likely skyrocket over the next year, due to the COVID-19 pandemic, according to the University of Illinois and Feeding America. Soaring unemployment and poverty rates may lead to record numbers of food-insecure households. Almost 55 million Americans could lack access to adequate food. Households with children are even more likely to be food insecure, and one in four children could face hunger. The projections for the worst-case scenario would lead to a five percent increase in the child poverty rate, potentially bringing the proportion of children in food-insecure households to 24.5 percent. That means 18 million children would be food insecure, which exceeds the previously measured highest total of 17.2 million during the Great Recession in 2009. The Impact of Coronavirus on Food Insecurity report provides detailed documentation for projected food insecurity levels at the national, state and county level, and is available at feedingamerica.org. ************************************************************************************ Some States See Double-Digit Gains in Gas Prices For the second consecutive week, the national average price of gasoline has increased, rising 6.4 cents to $1.83 per gallon. The average price of diesel, meanwhile, fell 1.6 cents to $2.41 per gallon. Patrick DeHaan of GasBuddy says the increase is attributed to a near five percent increase in gasoline demand. DeHaan says, "as long as states continue to loosen restrictions, it'll mean more motorists on the roads and filling their tank." Crude oil prices continue to march higher as demand for gasoline weighs on the market, with a barrel of West Texas Intermediate crude oil fetching $24.99 Monday morning, up from $19.19 a week ago, an increase of over $5 per barrel. Brent crude oil was last at $31.11 per barrel, up from $26.01 a week ago. Oil's rally has come as OPEC and other oil-producing countries limit production and as U.S. gasoline demand has rallied as motorists in reopened states and others alike take to the road.
| Rural Advocate News | Tuesday May 19, 2020 |
Washington Insider: Continuing China Trade Fight Bloomberg reported recently that while President Donald Trump has been musing about another trade confrontation with China. Trump says he “is not actually looking to talk to Chinese President Xi Jinping right now, although he had mused about “eliminating” the largest trading relationship in the world, with tensions high over the coronavirus outbreak, Bloomberg said. Asked in a recent TV interview about whether he had spoken to Xi recently, President Trump said that they have “a very good relationship” but “right now, I don’t want to speak to him. I don’t want to speak to him.” Unprompted, he offered that “we could cut off the whole relationship. If we did, what would happen? You’d save $500 billion,” he said – a reference what Bloomberg called “inaccurate” concerning the volume of trade between the countries. President Trump has sought for some time to blame China for the coronavirus pandemic as public confidence in his handling of the U.S. outbreak had sunk, Bloomberg said. The president and some of his allies have discussed somehow punishing Beijing for the outbreak, though any economic measures risk harm to the U.S., which is now in recession. “Cheap labor turned out to be very expensive,” the president said of China. Trump also commented that he’s examining Chinese companies that trade on the NYSE and Nasdaq stock exchanges but which “don’t follow U.S. accounting rules. We are looking at that very strongly,” he said, but cautioned that it could backfire. “Let’s say we do that, right,” Trump said. “So, what are they going to do? They’re going to move their listing to London or someplace else.” Trump also rejected renegotiating the “Phase One” trade deal he signed with Beijing in January. “We’re not going to renegotiate,” he noted and said the virus “was never even a subject” when the deal was signed. The president’s re-election opponent, former Vice President Joe Biden, has sought to turn the trade deal -- one of Trump’s signature first-term accomplishments -- into a liability by alleging the president had been focused on the agreement to the exclusion of the growing coronavirus outbreak. The Chinese Ministry of Foreign Affairs said late last week that continuing to develop ties was a core interest for both China and the U.S. “The stable development of relations between China and the United States is in the fundamental interests of the people of two countries and is also conducive to world peace and stability,” ministry spokesman Zhao Lijian told a media briefing in Beijing. “At present, China and the United States should continue to strengthen anti-epidemic cooperation, overcome the epidemic as soon as possible, cure patients and resume production and life.” While Chinese purchases of U.S. agricultural goods have recently picked up, the Global Times, a Communist Party publication, reported earlier this month that Beijing was weighing voiding or renegotiating the deal. The publication said that officials in the Chinese government were angered by U.S. criticism of China’s handling of the coronavirus pandemic. The president also said last week that while he still suspects the outbreak may be connected to a virology lab in Wuhan, China, it “was unlikely the Chinese deliberately unleashed the pathogen. I think more likely it got out of control,” he said. However, the president agreed with a TV host that China is trying to steal intellectual property and beat the U.S. to a coronavirus vaccine. “We can stop them, they’re going to try doing it,” he said. “I mean, you can stop doing business with them, that’s one thing.” Trump also threatened to replace board members of the Thrift Savings Plan, a retirement plan for federal workers, if they don’t follow through with a plan to defer shifting some of its investments into the stocks of Chinese companies. The savings plan was scheduled to transfer roughly $50 billion of its international fund to mirror an MSCI All Country World Index, which captures emerging markets including China. The Board was under pressure from the Trump administration and some lawmakers in Congress to delay the move. The board said Wednesday it would delay the move “due to a meaningfully different economic environment related in large part to the impact of the global COVID-19 pandemic” and the nomination of three new board members. “You know it’s run by the Obama appointments, right?” Trump said of the savings plan. “We’re going to find out whether or not they’re going to do it very soon, and if they’re not, we’re going to replace them very quickly.” So, we will see. Clearly, some members of the administration would like to ramp up the “get tough” policies toward China for a number of reasons?although the evidence linking any single nation to the COVID-19 outbreak has not attracted strong support from other trading partners. National policies regarding trade are continuing to be an extremely sensitive U.S. issue, debates that should be watched closely as they intensify, Washington insider believes.
| Rural Advocate News | Tuesday May 19, 2020 |
CFAP Rule Coming This Week The Office of Management and Budget (OMB) completed its review May 15 of the final rule from USDA for the Coronavirus Food Assistance Program (CFAP). The rule arrived at OMB May 5. The expectation is that it will be released Tuesday as USDA has set training for Farm Service Agency workers in three installments May 21-22. Key details will be the application process, payments and updated levels on payment limits. Meanwhile, USDA Secretary Sonny Perdue, Labor Secretary Eugene Scalia and NIH Director Francis Collins are among five new members of the White House Coronavirus Task Force, Vice President Mike Pence’s office said in statement. Peter Marks, FDA director of the Center for Biologics Evaluation and Research, and Thomas Engels, administrator of the Health Resources and Services Administration, were also named to the panel. The task force is entering a new phase focused on “getting Americans back to work and allowing businesses to re-open,” the statement said.
| Rural Advocate News | Tuesday May 19, 2020 |
DOJ Approves NPPC Plan on Euthanizing Hogs The Department of Justice (DOJ) has approved a pork industry plan for producers to coordinate with each other and agriculture officials to euthanize hogs because of the shutdown of meatpacking plants. The National Pork Producers Council (NPPC) wants to help farmers and state officials source equipment for culling hog herds and set up “centralized euthanasia and disposal stations.” The process includes sharing projections for the number of hogs that facilities can handle per day, the trade group said. Producers “may work at the direction of the USDA and state agriculture agencies to achieve humane and efficient euthanization of hogs that have grown too large to be processed and are thus unmarketable,” DOJ said in a statement. “The NPPC may also share general information with its members about best practices for depopulating unmarketable hogs.”
| Rural Advocate News | Tuesday May 19, 2020 |
Tuesday Watch List Markets A report on April housing starts at 7:30 am CDT is the only official report on Tuesday's docket. Traders will pay attention to the usual interests of weather and export news and continue to monitor coronavirus news as the country starts to get more active again. Weather Moderate to heavy rain is in store for the southeastern Midwest Tuesday with planting disruption and flood threats. The Ohio Valley is the focal point of this rain area. We'll also see light rain in the Northwest and dry conditions elsewhere. A wet pattern is indicated over most of the central U.S. in the next two weeks.
| Rural Advocate News | Monday May 18, 2020 |
The U.S., China Relationship Deteriorating Soon After Phase One Trade Deal Analysts already expect China to be unable to meet its obligations under the Phase One trade deal it signed with the U.S. this year. Now, the relationship between the two largest economies in the world appears to be in trouble. President Donald Trump seemed to add fuel to the fire when he told the Fox Business Network that he has no interest in speaking to Chinese President Xi (Zhee) Jinping right now. He even went as far as admitting the possibility of cutting ties with the Asian nation. Reuters says the U.S. president is very disappointed with China’s failure to contain the COVID-19 outbreak, noting that the pandemic cast a pall over his Phase One deal with China, which was previously hailed as a major achievement. “They should never have let this happen,” Trump says. “So, I make a great trade deal and now I say this doesn’t feel the same to me. The ink was barely dry, and the plague came over. And it doesn’t feel the same to me.” Trump’s irritation extended to the Chinese president, who Trump one said he had a good relationship with. “Right now, I don’t want to speak to him,” Trump told Fox. “There are many things we could do. We could even cut off the whole relationship.” ********************************************************************************************** China Now Open to U.S. Blueberries, Barley Imports China said late last week it would immediately allow imports of barley and fresh blueberries from the United States. That move came just days after announcing plans to impose tariffs on barley imports from Australia, as well as blocking Australian beef imports. The South China Morning Post says opening up to more U.S. agricultural imports is a step towards meeting the nation’s Phase One trade deal commitments. “The U.S. barley import decision is mainly due to the trade deal,” says Rosa Wang, an analyst with JCI China, an agricultural data provider. “To meet the targets, it is necessary for U.S. farm products to enter China.” Wang says it indicates China is making an effort, but also says the Australian side of things is a “separate matter.” Trade data shows that China is a long way from fulfilling its obligations. However, the Asian nation has been busy ramping up its purchases of U.S. pork. Early last week, China also exempted a total of 79 American products from tariffs. The new list of exemptions was made public just one day after China suspended imports from four Australian beef processing plants due to labeling and health concerns. ********************************************************************************************** Higher Blends Infrastructure Incentive Program Applications Open The USDA launched an online portal to start accepting applications for the Higher Blends Infrastructure Incentive Program grants. The agency plans to make up to $100 million available in competitive grants for activities that will help expand the sale and availability of ethanol and biodiesel fuels. “As the coronavirus response continues, America’s energy independence has proven to be critical to our economic security now more than ever,” says USDA Deputy Secretary of Agriculture Stephen Censky. “We know the positive impacts that affordable, abundant, and clean-burning fuel provide to our country’s farmers and consumers. The Higher Blends Infrastructure Incentive Program will help rural communities build stronger economies and will give consumers more choices when they fill up at the pump.” USDA will make the funds directly available to help transportation fueling and biodiesel distribution facilities convert to higher ethanol and biodiesel blends by sharing the costs related to the installation of fuel pumps, related equipment, and infrastructure. Online grants must be submitted by August 13. ********************************************************************************************** R-CALF Asks Perdue to Open CRP Land to Emergency Grazing R-CALF USA is asking Ag Secretary Sonny Perdue to consider opening up the 24 million acres of land enrolled in the Conservation Reserve Program to emergency grazing. The group says it would help to alleviate the backlog in the live cattle supply chain caused by COVID-19, which has reduced overall slaughter capacity. “The fed cattle backup requires the entire upstream live cattle supply chain to hold lighter-weight cattle out of the feedlot sector of the supply chain until the current backlog of cattle can be processed,” says R-CALF CEO Bill Bullard in the Hagstrom Report. “To hold these lighter-weight cattle back, more grazing land than normal is needed to maintain their health and measured growth.” He points out that some areas in rural America are experiencing drought conditions, which means the industry is faced with a greater need for more grazing land than normal. “At the same time, some grazing lands are producing less forage than normal because of the drought,” Bullard adds. “An immediate solution to this challenge is to open CRP lands to emergency grazing and making accommodations so non-CRP landowners can rent CRP land from others for a reasonable fee.” ********************************************************************************************** More Ag Groups Respond Positively to SECURE Rule on Plant Breeding Last week, USDA announced a final rule that updated and modernized the agency’s biotechnology regulations under the Plant Protection Act. The final rule is called The Sustainable, Ecological, Consistent, Uniform, Responsible, Efficient Rule, which USDA says will bring its plant biotechnology regulations into the 21st Century. The American Farm Bureau says the revision will encourage innovation of new plant breeding techniques while safeguarding our food supply. “We appreciate the USDA and Secretary Perdue for their common-sense approach to encouraging innovation,” says AFB President Zippy Duvall. “At a time when agriculture is facing many economic headwinds, the science-based rule provides the opportunity to solve current and future challenges for agricultural production and food security.” The American Soybean Association is another group pleased with the changes. “We’re happy that the new rule streamlines the regulatory process for low-risk crops to come to market,” says ASA Regulatory Committee Chair Caleb Ragland. “By establishing a common-sense regulatory process to ensure new biotech plant varieties are reviewed quickly with predictable timelines and allowed to go to market if they pose no threat, soybean growers will remain efficient and competitive through this continued access to innovation.” ********************************************************************************************** Growth Energy Asks COVID-19 Panel to Examine Benefits of Biofuels Growth Energy sent a letter to the Environmental Protection Agency’s Science Advisory Board asking a new COVID-19 review panel to look into the impacts of gasoline on air quality. They want the panel to examine the impact of toxic gasoline additives on respiratory health, as well as the potential benefits offered by bio-based alternatives like ethanol. “As you explore the human costs of air pollution, including the heightened risk from COVID-19 among vulnerable parts of the population, we are asking you to examine the wide body of related research pointing to readily available solutions,” says Chris Bliley, Senior Vice President of Regulatory Affairs at Growth Energy. “Federal regulators have long acknowledged that biofuels reduce greenhouse gas emissions by 39 percent more, but ethanol also serves as the single most affordable and abundant alternative to toxic fuel additives.” The letter points out that the petroleum-based aromatics play a dominant role in the formation of toxic emissions linked to cancer, as well as neurological, cardiovascular, and reproductive damage in humans. “Now more than ever, it’s critical that the EPA explore the full impact of petroleum-based aromatics on air quality,” Bliley adds.
| Rural Advocate News | Monday May 18, 2020 |
Washington Insider: New Coronavirus Stimulus Fight Politics has become increasingly difficult and opaque these days as the House completed work on a new $3 trillion economic stimulus bill that Republicans and President Donald Trump say has little chance of passage without major changes, Bloomberg says. The measure would give cash-strapped states and local governments more than $1 trillion while providing most Americans with a new round of $1,200 checks. House Speaker Nancy Pelosi, D-Calif., says it should be the basis of talks with the GOP-controlled Senate and White House, in spite of GOP concerns. The measure was praised by New York Governor Andrew Cuomo, a Democrat whose state has been hammered by coronavirus-related expenses and plunging revenues. Cuomo also criticized what he called a rising tendency to look at the COVID-19 death toll by political affiliation, since the hardest-hit states are led by Democrats. “Shame on you,” he said. New Jersey Governor Phil Murphy also urged action in the Senate, citing a “bipartisan chorus” that wants to help struggling states. The funding contained in Pelosi’s bill is “absolutely necessary,” he said. Trump and Republican congressional leaders have acknowledged, however, that some sort of further economic stimulus will likely be necessary as the economy continues to shed jobs. The number of people filing for unemployment benefits since March now exceeds 36 million. “Phase four is going to happen but it’s going to happen in a much better way for the American people,” the president told reporters Friday. Amid the House effort to pass another stimulus bill, The Hill reported that Federal Reserve Chair Jerome Powell shook markets and alarmed lawmakers this week with yet another dire warning: The U.S. could suffer through years of sluggish growth and meager job gains well after the pandemic passes without further economic stimulus, he said. In a speech Tuesday, Powell urged lawmakers to set aside concerns about the mounting national debt and provide the fiscal support necessary to keep the economy from spiraling deeper into the worst downturn since the Great Recession. “Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery. This trade-off is one for our elected representatives, who wield powers of taxation and spending,” Powell said. His comments were in spite of those by White House officials and other GOP leaders who declared a “formal pause” on negotiations even as the unemployment rate spiked to 14.7% and the U.S. lost 20.5 million jobs in April. Powell’s current call for aggressive fiscal action was not his first since the coronavirus pandemic “forced thousands of businesses to close and millions of Americans to lose their jobs.” He urged lawmakers in a speech on April 29 to unleash the “great fiscal power” of the U.S. to defeat COVID-19 and has warned throughout the crisis the Fed’s unprecedented response alone would not save the economy. Powell is also only one of the latest in a line of Fed chiefs -- including his past two predecessors, Janet Yellen and Ben Bernanke -- to nudge Congress toward spending more than it might be comfortable spending. In the current outbreak, Powell was among the first federal officials to express concerns over its potential threats as President Trump and his top aides initially appeared to brush off the rising danger, The Hill said. The Fed’s swift response helped stabilize financial markets as the U.S. lockdown began and earned Powell near unanimous praise. Even the president, who once “floated” firing him, has more recently called him his “Most Improved Player” despite his fierce defense of the Fed’s political independence. "He has done a very good job over the last couple of months, I have to tell you that," Trump told reporters during a meeting this week. Powell’s most immediate challenge now is to convince fellow Republicans to overlook their ideological opposition to deficits and steer the country through the current worsening crisis, The Hill says. The Hill notes that Powell had caught the attention of the Obama White House in 2011 when he implored Republicans to raise the federal debt limit when he was a fellow at the Bipartisan Policy Center. President Obama then nominated him to the Fed alongside a stalled Democratic nominee, former Fed Governor Jeremy Stein. The Senate confirmed both in May 2012. Once again, Powell is imploring Republicans to loosen the federal pursestrings for now and tackle the long-term challenge of the $24 trillion debt “amid a partisan showdown.” Democrats have seized on Powell’s recent comments to boost pressure on Republicans to approve more spending. He argued that this week that the costliest choice the Congress faces is inaction, The Hill said. So, we will see. There appears to be widespread belief now that governments who did not provide significant relief in the recent recession had much worse outcomes than those that did, although a number of politicians are arguing for a somewhat more cautious approach in the future, This is a debate that Powell appears to be well positioned to influence and which should be followed closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Monday May 18, 2020 |
WTO Chief Announces Early Exit WTO Director General Roberto Azevedo announced Thursday he will seek to exit his role leading the world trade body August 31 and called for action to replace him. His departure is a year ahead of the scheduled end of his term leading the WTO. U.S. Trade Representative Robert Lighthizer said the U.S. would participate in the process of finding a successor. “Despite the many shortcomings of the WTO, Roberto has led the institution with grace and a steady hand,” Lighthizer said in a statement. “In the coming months, the United States looks forward to participating in the process of selecting a new Director General." The trade body and its predecessor the General Agreement on Tariffs and Trade (GATT) have not been led by someone from the U.S., Africa or the Middle East, while five of the nine leaders of the trade bodies have been European.
| Rural Advocate News | Monday May 18, 2020 |
USDA CFAP Webinar Reveals Few Details on Program USDA’s webinar to provide information about the Coronavirus Food Assistance Program (CFAP), as expected, provided little detailed information on how the program will function, including the key issue of payment limits. Instead, the 15-minute session focused on the number of forms that will need to be completed by producers to participate. Officials took few questions during the session and did not provide details when asked about specific commodities and livestock eligible for CFAP payments. Ahead of the webinar, it was clear USDA was likely focusing the session on those producers who currently do not participate in U.S. farm programs, like specialty crop producers. USDA expects the final rule for the program to be out soon – it currently has training for FSA staff May 21 and 22.
| Rural Advocate News | Monday May 18, 2020 |
Monday Watch List Markets Monday's schedule will look familiar: Weekly grain inspections at 10 a.m. and USDA's Crop Progress report at 3 p.m. CDT. There are no other official reports on the docket, but the latest weather forecasts will be watched along with any news about trade, meat processing plants or coronavirus. Weather Moderate to heavy rain will continue working across the eastern Midwest Monday. Flooding is likely, following on flooding weekend rains in the region. We'll also see light rain in the Southeast and in the Northwest. Temperatures will be seasonal to above normal with a hot trend in dry areas of the southwestern Plains.
| Rural Advocate News | Friday May 15, 2020 |
Kansas City Fed says Ag Income Drops, Credit Conditions Deteriorate Agricultural credit conditions in the Kansas City Federal Reserve Bank’s Tenth District deteriorated at a slightly faster pace as the COVID-19 outbreak ramped up in the first quarter of this year. The Fed’s survey of ag lenders during the first quarter of 2020 showed a larger decline in farm income and loan repayment rates than in recent quarters. Looking to the future, bankers say they are more pessimistic in terms of expectations. Further disruptions at meatpacking and food processing facilities, as well as a substantial slowdown in ethanol production, put heavy downward pressure on cattle and corn prices. As of early May, cash prices for both commodities had declined more than 20 percent since January. That’s done nothing but add pressure to already stressed farm finances in seven states of the Kansas City Fed’s district. While farm income in the district weakened alongside a steep drop in agricultural commodity prices, spending by farm borrowers also weakened slightly, but less abruptly than farm income. After showing some signs of stabilizing in previous surveys, credit conditions deteriorated quicker in the first quarter of this year. Similar to farm income, farm loan repayment rates also declined at a faster rate than in recent quarters. Almost 40 percent of banks in the district reported a decline in repayment rates compared to previous surveys. ********************************************************************************************** Transportation Department Published Final Hours of Service Rule The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration published its final rule updating the “Hours of Service” rules designed to increase safety on America’s roads. The department updated multiple existing regulations for commercial motor vehicle drivers. “America’s truckers are doing a heroic job of keeping our supply chains open during this unprecedented time,” says Transportation Secretary Elaine Chao (Chow). “These rules will help give them greater flexibility to keep America moving.” The FMCSA says the changes were made based on thousands of comments they received from Americans across the country. There are four key changes to the existing hours of service rules, all of which do not increase driving time and will continue to prevent operators from driving for more than eight consecutive hours without at least a 30-minute break. The agency says the trucking industry is a “key component” of the national economy, employing more than seven million people and moving 70 percent of the nation’s domestic freight. The new hours of service rule will be implemented 120 days after publication in the federal register. ********************************************************************************************** NCBA Opposed Livestock Marketing Bill The National Cattlemen’s Beef Association came out in opposition to a bill that would require a minimum of 50 percent of a meat packer’s beef volume for slaughter be bought on the cash market. The Hagstrom Report says the bill was introduced in the Senate by Iowa’s Chuck Grassley and Jon Tester of Montana. NCBA’s Policy Division Chair Todd Wilkinson says, “Currently, cattle producers use a multitude of methods to market their livestock, including the cash market. Increased price discovery will benefit all segments of the cattle industry, which is why NCBA has been working closely with key stakeholders, industry experts, and other partners to develop measurable means to meet that end.” He says any solution shouldn’t restrict an individual producer’s freedom to pursue marketing avenues that they determine will best meet their operation’s unique needs. “The bill being proposed by Senator Grassley would arbitrarily force many cattle producers to change the way they do business,” Wilkinson adds. “We’ll be working toward a more equitable solution.” While NCBA is opposed to the bill, the U.S. Cattlemen’s Association and R-CALF USA have endorsed the legislation. ********************************************************************************************** Ethanol Production Shows Slight Rebound, Tighter Stocks The Renewable Fuels Association took a look at numbers from the Energy Information Administration and found ethanol production rose during the week ending May 8. Production grew 3.2 percent, or about 19,000 barrels per day, to 25.91 million gallons daily. That’s the highest production level the industry has reached in the last five weeks. Still, production does remain well below normal, down just over 41 percent from the same week last year. Ethanol stocks tightened by 5.6 percent to 24.2 million barrels, While the inventory level is high, that’s the lowest level of ethanol stocks since March 20. Every major ethanol-producing region saw its ethanol inventories decrease, except for the Rocky Mountains, where stocks went slightly higher. However, the number of total reserves is up just over eight percent higher than the same time in 2019. The volume of gasoline supplied to the U.S. market is an implied measure of ethanol demand, jumping 11 percent higher to just under 7.4 million gallons. While that is positive news, the demand number is still 19 percent lower than last year. Refiner/blender net inputs were up 11 percent higher, but still 30 percent below last year’s levels. ********************************************************************************************** Sorghum Producers Back USDA Interim Rule on Biotechnology The USDA announced its final rule on plant biotechnology regulations, which will revise decades-old regulations surrounding the development of certain genetically engineered organisms. National Sorghum Producers CEO Tim Lust says they’re pleased USDA has “moved forward” with the rulemaking process and is following earlier guidelines to include new plant breeding technologies like gene editing and technologies like CRISPR (Crisper). “Plant breeding innovations are vital to sorghum producers and will play a fundamental role in our ability to produce more with fewer inputs and to compete in the global marketplace,” says Lust. “By utilizing new techniques, products can be developed more efficiently, saving valuable time and resources.” He says USDA’s approach is commensurate with the broadly-acknowledged low-risk and substantial benefits associated with these breeding innovations. The organization is hopeful that the Environmental Protection Agency will follow the lead of USDA so the improvements in pest and disease resistance can also be achieved through these techniques without any expansion of unnecessary regulatory burdens.” ********************************************************************************************** Trump Acknowledges Challenges with China Trade Deal U.S. President Donald Trump appeared to admit there were likely challenges ahead for his trade deal with China. He says the magnitude of the coronavirus pandemic will far outweigh any positive effect the agreement may provide to the U.S. Politico says many analysts don’t expect China to meet the purchase target of $77 billion more in U.S. goods and services this year, compared to the 2017 baseline levels. “As I’ve said for a long time, dealing with China is a very expensive thing to do,” the president wrote on Twitter. “We had just made a great trade deal, the ink was barely dry, and the world was hit by a plague from China. 100 trade deals wouldn’t make up the difference – and all those innocent lives lost.” Still, there’s no early indicator that the president intends to pull out of the U.S.-China deal that was signed on January 15 or punish the Asian nation for falling short on implementation, such as imposing more tariffs on Chinese imports into the U.S.
| Rural Advocate News | Friday May 15, 2020 |
Washington Insider: Modest Anti-Hunger Steps The Trump administration has come in for some strong criticism recently for its “modest” feeding programs as hunger “spreads across a locked-down nation,” the New York Times is reporting, It says that the administration “has balked at the simplest ways to feed the hardest hit.” For example, it says USDA is focusing on giving states more flexibility to feed their citizens through regulatory waivers, many of which expire at the end of the month. And, it cites the Hamilton Project at the Brookings Institution that says that “since the beginning of the pandemic, rates of household food insecurity have doubled and the rates of childhood food insecurity have quadrupled.” USDA notes that it has given states more administrative power over the agency’s 15 nutrition assistance programs, which cover children, women and infants, and adults. It also says it plans to send more than 5 million food boxes a week to children living in rural areas. However, “the waivers, especially, are modest” the Times says. One allows school meals to be served outside of crowded settings; another allows meals to be distributed without some education activity. The department has allowed 24 states to receive additional assistance through an electronic transfer of benefits that accounts for the value of free and reduced-price meals that their children no longer receive because of school closures. And families in 23 states can use benefits from the supplemental nutrition assistance program to purchase groceries online. Other waivers have allowed states to issue emergency allotments that increase SNAP benefits to the monthly maximum for all beneficiaries. That has expanded food assistance for some working poor families but did not help the poorest, who already get the maximum benefit. The department also says it will send $16 billion to farmers and will purchase $3 billion in fresh produce, dairy, and meat for food banks, community and faith-based organizations, and other nonprofit organizations. At the same time, USDA attracted attention of critics by filing a notice that it would appeal a court ruling that blocked stricter work requirements for food stamps that were to take effect in April, stripping nearly 700,000 people from the food stamp rolls. Opponents of the rule were incredulous, the Times said. The NAACP Legal Defense Fund has asked state officials in Louisiana and Alabama, where school meal sites have shut down, to look at whether those closures have a disproportionate impact on low-income and African-American students and schools that continue to operate their meals programs are struggling to feed adults, NYT says. Under current rules, the federal government does not reimburse meals served to adults unless they are disabled and receiving care from the school. In April, the California Department of Education asked USDA to waive that rule, but the administration said it lacked the authority to do so. As poverty rises, states are facing a crush of applicants for SNAP. Congress and a federal court have waived most SNAP work requirements during the emergency. Still, higher education students, sent home by their colleges and universities, still must find jobs to qualify for SNAP. In addition, many adults are turning to food banks, NYT says. Congress has provided additional funding for them through the Emergency Food Assistance Program, which many food banks rely on. However, this program has yet to receive the additional funds and officials worry that they will not be able to store perishable goods from the new program of prepackaged food boxes. USDA has obligated just $99 million of the $850 million that Congress appropriated for the Emergency Food Program, Senators Patrick Leahy, Democrat of Vermont, and Jon Tester, Democrat of Montana, said. FEMA, the agency tasked with supplying emergency meal kits or funding food distribution programs after disasters, has also forecast food shortages. In April, the agency outlined how it would support meal distribution through its public assistance program, which covers 75% of the costs. Peter Gaynor, the administrator of FEMA, said this month that states were already asking the for assistance. “It’s not widespread but we see pockets of it,” he said. The federal funding for food distribution is “a tool that is made available to everyone, everyone that’s in a disaster.” Earlier this month, FEMA announced $200 million in supplemental funding from the coronavirus stabilization law for grants through its Emergency Food and Shelter Program. It said a total of $320 million will be distributed beginning in early June to help address hunger and homelessness. Democrats want FEMA to increase its share of the cost and Senators Pat Leahy, D-Vt., and Jon Tester, D-Mont., pointed out that just $5.8 billion of the $79 billion available in the FEMA Disaster Relief Fund has been obligated. So, we will see. The administration is deeply stressed over its enormous anti-coronavirus efforts and the stresses on efforts to deal with increasing hunger certainly will continue to attract attention along with charges of inequitable support. These are debates producers should watch closely as they proceed, Washington Insider believes.
| Rural Advocate News | Friday May 15, 2020 |
Packers Get Room to Hire Workers in US On H-2B Visas The Trump administration is implementing temporary change to rules on H-2B guest workers to allow for those non-agricultural workers to be hired for positions in the U.S. food supply chain like meat packing plants as those businesses deal with absenteeism and workers quarantined because of COVID-19 exposure. The U.S. Citizenship and Immigration Services published a temporary final rule in the Federal Register that is good through May 15, 2023, to allow those in the U.S. food supply chain to hire current H-2B employees whose work contracts or three-year visas are expiring. The companies also would be able to hire other H-2B workers with expiring visas who otherwise would have to return to their home countries. Employers and workers have until September 11, 2020, to enter into new work contracts.
| Rural Advocate News | Friday May 15, 2020 |
China Shift on US Barley Imports Another Component Of Phase One Agreement China’s customs agency has posted a notice on its site that U.S. barley and blueberries will be allowed into China. The agency said on its website that effective today (May 14), imports that meet relevant requirements will be allowed into the country. The shift is confirmation that provisions of the Phase One agreement between the two sides continue to be implemented. The deal called on the U.S. and the General Administration of Customs of the People’s Republic of China (GACC) to make several changes on phytosanitary protocols, including signing and implementing such a protocol to allow the importation of U.S. barley and blueberries into China within three months of the agreement entering into force.
| Rural Advocate News | Friday May 15, 2020 |
Friday Watch List Markets Trader interest in the latest weather forecasts, trade news and coronavirus news has not wavered. A report on April retail sales will be released at 7:30 a.m. CDT, followed by April industrial production at 8:15 a.m. An index of consumer sentiment is out at 9 a.m., followed by NOPA's estimate of April's soybean crush later Friday morning. Weather Showers and thunderstorms are in store from the southeastern Plains through the eastern Midwest Friday. The storms will produce moderate to heavy rain. Severe intensity with hail, strong winds and possible tornado development is also possible. Meanwhile, light rain will cross the northwestern Plains, with light rain also noted for the Delta and Deep South. Other crop areas will be dry.
| Rural Advocate News | Thursday May 14, 2020 |
House Democrats Heroes Act Includes Agriculture Provisions The next round of coronavirus relief introduced by House Democrats would increase direct payments to farmers by $16 billion. The funds are expected to supplement the already planned $16 billion in payments. While the legislation focuses on replenishing the Paycheck Protection Program and providing an additional round of direct payments to Americans, the bill includes multiple benefits for agriculture. The Democrats plan would increase Supplemental Nutrition Assistance Program benefits 15 percent, and provide additional donation and feeding programs of commodities, including dairy. The bill also includes a proposed 45 cents-per-gallon payment of biofuel produced this year through May first, as biofuel plants are shuttering amid a demand drop. Additional details in the legislation include $10 billion for the Economic Injury Disaster Loan program, another $75 billion for coronavirus testing, a $200 billion fund for essential workers, and $1 trillion for state and local governments who need funds to pay vital workers. The House is expected to vote on the package Friday. ************************************************************************************ House Bill Would Offer Tax Relief to Food Supply Chain Workers This week, House lawmakers introduced the Assistance and Gratitude for Coronavirus Heroes in Agribusiness who are Invaluable to the Nation or the AG CHAIN Act. The bill would provide a federal tax holiday and a payroll tax exemption for all essential employees in the food and agriculture industry defined by recent Department of Homeland Security guidance. The legislation is an extension of the previously introduced GROCER Act that would establish a federal tax holiday for grocery and convenience store employees. The provisions would take place from February 15, 2020, through June 15, 2020, for individuals making less than $75,000 annually. The bill would also provide discretion to the Treasury to extend this benefit for an additional three months. Pennsylvania Representatives, Republican Glenn GT Thompson and Democrat Dwight Evans, introduced the bill Tuesday. The National Grocers Association applauded the legislation in a statement, adding the bill “honors supermarket superheroes and will help boost the income of workers that show up for work every day.” ************************************************************************************ Grassley, Colleagues Introduce Bipartisan Bill to Increase Transparency in Cattle Pricing A group of Senators this week introduced a bipartisan bill to increase transparency in cattle pricing. Led by Iowa Republican Senator Chuck Grassley, the legislation seeks to foster efficient markets while increasing competition and transparency among meatpackers who purchase livestock directly from independent producers. The bill will require that a minimum of 50 percent of a meat packer's weekly volume of beef slaughter be purchased on the open or spot market. Grassley first introduced the bill in 2002. After discovering a discrepancy between high grocery store shelf prices and simultaneous decreased cattle prices, Grassley re-introduced the legislation. The Senator says the bill will make systemic changes to the cattle industry to ensure longevity of independent producers, which will protect the U.S. beef supply. Joining Grassley on the bill are Senate Republican Joni Ernst of Iowa, Mike Rounds of South Dakota, Cindy Hyde-Smith of Mississippi and Steve Daines of Montana, Along with Democrats Jon Tester of Montana, and Tina Smith of Minnesota. ************************************************************************************ Group Seeks Priority COVID-19 Testing for Food and Ag Workers The Sustainable Food Policy Alliance wants the White House to prioritize COVID-19 testing for food and agriculture workers. The group sent the request in a letter to Vice President Mike Pence and Agriculture Secretary Sonny Perdue this week. The organization urges that food and agriculture workers, as part of an essential industry, be heightened in priority for expedited testing, personal protective equipment, and any other forthcoming treatment related to COVID-19. Members of the Alliance include Danone North America, Mars, Incorporated, Nestlé USA, and Unilever. The letter states that maintaining a strong and stable food supply chain depends on keeping food and agriculture workers, from farmers and ranchers to truckers to grocery store employees to food company employees, safe and healthy. The companies also highlighted the need for the federal government to work with states and local officials to ensure increased testing capacity for COVID-19 for agriculture and food supply chain workers. ************************************************************************************ USDA Hosting Coronavirus Food Assistance Program Webinar A webinar Thursday offers farmers information on direct payments through the Coronavirus Food Assistance Program. Planned for 1:00 p.m. Eastern Time, the Department of Agriculture says the webinar is an opportunity for producers to learn about the general application process and required documentation prior to the official beginning of signup. Producers must register for the webinar at zoomgov.com. USDA is hosting the webinar to share what information is needed to apply for direct payments through CFAP, once the application period begins. More details about the direct payments will be announced soon. As part of President Trump and Secretary Perdue’s April 17 announcement of a $19 billion Coronavirus Farm Assistance Program, USDA will provide $16 billion in direct support based on losses for agricultural producers where prices and market supply chains have been impacted. Also, USDA will assist eligible producers facing additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year caused by COVID-19. A recording of the webinar will be posted at farmers.gov/CFAP. ************************************************************************************ AEM Releases April 2020 Ag Equipment Sales Numbers Unit sales of agricultural tractors and combines in April 2020 rose in the U.S., according to the latest data from the Association of Equipment Manufacturers. The April increase puts total unit sales year-to-date roughly flat with 2019. Curt Blades, senior vice president of Ag Services for AEM, says, “The COVID-19 crisis is certainly causing some uncertainty in farm income and ag equipment purchases for the balance of the year.” U.S. total farm tractor sales rose 12.3 percent in April compared to 2019 while U.S. April combine sales inched up 4.1 percent. Year-to-date sales of all farm tractor units are down 0.6 percent for 2020, and combine sales are down 10.1 percent in the same period. For Canada, April tractor sales fell across all segments except mid-range units, leading to an overall decline of tractor sales of 5.7 percent, with combine sales following along losing 29.9 percent. That puts overall farm tractors down 13.1 percent for 2020 year-to-date and combines down 34.6 percent in Canada.
| Rural Advocate News | Thursday May 14, 2020 |
Washington Insider: Farmers and Climate Change Roll Call is reporting this week that farmers may be warming up toward an issue they have long avoided: climate change. The report harks back to a recent press conference where a farm coalition now said it wants to join the fight against climate change rather than remain cast as villains “avoiding responsibility.” Roll Call said the new position was a “sharp departure for an industry that less than a year earlier looked more like a victim” with nearly 20 million acres “so saturated and flooded that many farmers couldn’t get into their fields.” However, Roll Call now says producers are increasingly acknowledging that they “need to change their practices” and note the impacts of their emissions of carbon dioxide and other greenhouse gases that contribute to a warming planet. These conditions contribute to flooded fields, persistent droughts or ravaging wildfires “partly fueled by trees killed by insects that increasingly survive mild winters.” As a result, environmentally minded farmers are changing the way they operate, including greater use of cover crops. And they are shifting to no-till practices which also protect the soil. Healthier soil can serve as a “carbon sink,” that absorbs more carbon than it emits. These producers are largely self-motivated, Roll Call says, in part based on recognition that the sector could face yield declines in major crops as temperatures increase and water becomes scarcer. “If you ask any farmer if they’ve experienced a difference between when they first started farming and today, almost everybody can recognize some dramatic differences in weather patterns,” says Josh Yoder, an Ohio corn and soybean farmer. The EPA’s 2018 greenhouse gas inventory says the U.S. agriculture sector accounted for nearly 10% of the nation’s greenhouse gas emissions, up from 9% in 2017. Overall greenhouse gas emissions in the U.S. rose by 2.9% during the year. Zippy Duvall, the American Farm Bureau president who raises cattle and crops in Georgia, told the press conference that climate issues are a growing priority for the country and for Congress and “his industry should be at the table.” This pressure isn’t just coming from the environmental movement, Roll Call said. “Big customers are responding to investors and consumers by pressing suppliers to reduce emissions.” The agriculture groups’ turnaround can be traced in part to recent congressional resolutions that cast farmers as part of the problem. The group noted that some “conventional agriculture groups want to get ahead of this,” and cited Rep. Chellie Pingree, D-Maine, who is an organic farmer. “They don’t want to be seen as the evil wrongdoers.” But Pingree also faults progressives for often ignoring the complexities of agriculture and climate. “Too much of the conversation around climate change in agriculture is just plant a tree and don’t eat meat and close the door. That’s such a simplistic understanding of what is going on.” The conservation group’s ag goals are difficult hurdles because “most of the harmful agricultural practices are still commonplace,” Roll Call says. Of the U.S. total of nearly 800 million acres used for crop production or grazing in 2017, only 15.3 million were planted to climate-friendly cover crops. No-till or reduced tillage were used on about 200 million acres. Still, USDA Secretary Sonny Perdue said in February he wanted to cut agriculture’s carbon footprint in half by 2050 “without regulatory overreach.” Pingree says she sees reason for hope in Perdue’s announcement and wants to build on it with legislation she introduced. “I would say that I’ve seen a sea change in conventional agriculture and agriculture thinking,” Pingree says. “That doesn’t mean we’re at the point where everyone has signed up for every conservation program.” Jennifer Moore-Kucera, climate initiative director at American Farmland Trust, says there is growing awareness among farmers of the benefits of conservation practices that also serve as tools for sequestering carbon and reducing the production of nitrous oxide. Ultimately, Moore-Kucera told lawmakers, agricultural land is a resource that should also be shielded from urban sprawl. Agriculture still has a long way to go before it can become a climate hero, Roll Call thinks. While the majority of scientists agree on climate change and the forces driving it, researchers continue to evaluate the best tools to curb emissions. At the Environmental Defense Fund, special project director Callie Eideberg says the organization believes the best way to involve farmers is to talk about climate change in business terms. It sees large-scale agriculture as an effective platform to tackling greenhouse gas emissions. “We know as a society we need to get to net-zero carbon emission by 2050,” Eideberg says. “The way the climate is changing now, we’re not going to do that unless we find ways to be resilient, which is “a lot about adaptation as well as sustainability.” She thinks many thigs are pointing in the right direction. We just have to make sure the momentum increases,” she adds. So, we will see. The changes in tillage practices have been significant, and appear to be continuingâ??but achieving ag’s new conservation objectives likely will take support from government programs, which may be difficult to achieve, given the enormous competing needs for resources, Washington Insider believes.
| Rural Advocate News | Thursday May 14, 2020 |
Dairy Producers In US, Other Countries Warn Against EU Dairy Stockpiling Effort The coming start of government-financed intervention purchases of skim milk powder (SMP) and butter in the European Union (EU) is prompting concern among U.S. and other dairy producing countries. A coalition of dairy organizations from Argentina, Brazil, Chile, Costa Rica, Ecuador, Guatemala, Mexico, Paraguay, Uruguay and the United States issued a joint statement calling on the EU to not take action similar to what it previously when its 2016-17 intervention efforts resulted in it accumulating an equivalent of 16% of the global SMP market in government storage. The release of those stocks over the next two had “unfairly” undercut international prices. “The EU intervention program would artificially distort prices for an extended period and displace commercial competition just as the world begins to recover from the immediate impacts of the COVID-19 pandemic,” the groups said, noting the export of government purchased SMP and butter had taken place at below-market rates. Instead, the groups called on the EU to take steps that spur consumption within the EU “and encourage its producers to implement appropriate production practices to survive at this difficult time.”
| Rural Advocate News | Thursday May 14, 2020 |
USDA Hosting Webinar on Applying For CFAP Direct Payments USDA has set a webinar today (May 14) for “farmers, ranchers and other producers interested in applying for direct payments through the Coronavirus Food Assistance Program (CFAP).” The session is to address the general application process and required documents participants will need to complete. “Producers who are new to participating in FSA programs are especially encouraged to join the webinar,” the agency said. More details will be announced “soon,” USDA said. USDA has also launched a CFAP site, noting under the section on direct support to farmers and ranchers that they program is available to farmers “regardless of size and market outlet, if they suffered an eligible loss.” While USDA Secretary Sonny Perdue has signaled that the payment limits will be lifted from those he initially said would be in the package of $125,000 per commodity and a total limit of $250,000 per producer or entity, the website notes “demand is significant and these payments will only cover a portion of the impacts on farmers and ranchers.” USDA also lists the various forms that program participants will need to have to participate, noting that existing customers with the Farm Service Agency (FSA) will have this information “likely on file at your local service center.” Meanwhile, FSA is advising state and county offices that national training on CFAP is planned for May 21. That suggests that a late-May signup period appears most likely at this stage with funds flowing to producers in early June.
| Rural Advocate News | Thursday May 14, 2020 |
Thursday Watch List Markets As usual, 7:30 a.m. CDT is a busy time Thursday with weekly grain export sales, U.S. jobless claims and a new U.S. Drought Monitor all out at the same time. The U.S. Energy Department releases natural gas inventory at 9:30 a.m. CDT. The latest weather forecasts, trade news, and coronavirus updates continue to be topics of high interest. Weather Showers with light to moderate rain are in store for the western and central Midwest Thursday. Also see light rain in the Northwest. A notable warming trend will be noted going into the end of the week.
| Rural Advocate News | Wednesday May 13, 2020 |
Chinese Questions on Phase One Trade Deal Global Times, a Chinese state-owned media company, cites sources “close to the Chinese government” who say that China may want to redo the Phase One Trade Deal with the U.S. Politico says government advisers reportedly have said China should void the deal and renegotiate the four-month-old agreement with the U.S. so it’s more favorable for Beijing. “In fact, it’s in China’s interests to terminate the current phase one deal,” says an unnamed trade adviser quoted in the Times. “The U.S. now cannot afford to restart the trade war with China if everything goes back to square one.” However, U.S. President Donald Trump was asked about the report on Monday, saying that he wasn’t interested in renegotiating the trade deal, “not even a little.” The president said he’d heard those same reports that China would like to reopen trade talks with the U.S. and make it a better deal for them. “I’m not interested in that,” Trump says. “Let’s see if they live up to the deal they’ve signed.” Trade tensions have been climbing between the two nations as the Trump Administration accused Beijing of spreading misinformation about COVID-19 and failing to contain the virus. ********************************************************************************************** European Union Wants to Restart Trade Talks with the U.S. The European Union is looking to revive trade negotiations with the U.S. to help bring the trade disputes between the two sides to an end. The EU is proposing a joint agenda that covers everything from aircraft subsidies and lobster tariffs to shared reserves of medical supplies. EU Trade Commissioner Phil Hogan has told U.S. Trade Representative Robert Lighthizer that there is scope to reach an agreement. Before COVID-19, Hogan was optimistic a mini-deal could be reached with Washington that would address President Trump’s complaints about EU trade barriers facing U.S. exports, especially agricultural exports to the EU. Some of the ideas Brussels has looked at include reducing tariffs on car imports as well as both sides expediting their sluggish regulatory approval processes for meats and fruits. One of the biggest barriers to potentially seeing more U.S. agricultural exports to the EU is a ten-year battle over aircraft subsidies between the U.S. and EU. Financial Times says Hogan wrote a letter to Lighthizer saying it was “becoming impossible to explain why the U.S. and EU continue to be locked in a self-defeating cycle of tariffs and mutual recriminations over aircraft subsidies.” ********************************************************************************************** Biofuel Groups Ask Pelosi, McConnell for Ethanol Relief Biofuel and farm groups sent a letter this week to House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell asking for ethanol and biodiesel help. The Hagstrom Report says they’re asking that financial relief for biofuels be included in the next coronavirus relief package. The letter was signed by many prominent groups, including the Renewable Fuels Association, Growth Energy, the National Biodiesel Board, and many others. “The situation we face is dire,” the groups say in the letter. “More than 130 biofuel plants have already partially or fully shut down as motor fuel demand plunged to 50-year lows. America’s biofuel plants annually purchase more than one-third of U.S. corn and U.S. soybean oil. The loss of those markets has depressed farm income and will continue to push corn and soybean prices down dramatically.” The groups point out that the economic damage has “rippled across the entire agricultural supply chain.” The letter also says that USDA excluded the biofuel sector from initial aid under the CARES Act, despite ongoing letters of support to Ag Secretary Sonny Perdue from broad, bipartisan coalitions in the House and Senate. “It’s vital that the next COVID-19 relief package includes immediate, temporary, and direct assistance for the biofuel industry,” they add. ********************************************************************************************** Colombia Implements Duties on U.S. Ethanol Imports The Colombian Ministry of Commerce, Industry, and Tourism announced it will impose duties on U.S. ethanol exports into Colombia. The U.S. ethanol industry and biofuels groups were not happy with the move. “While we have cooperated fully with investigating authorities in Colombia to demonstrate these final duties are unjustified, the Colombian government took the side of the Colombian ethanol industry,” says the U.S. Grains Council, Growth Energy, and the Renewable Fuels Association in a statement. “The Ministry’s decision was not supported by evidence and raises questions regarding the Ministry’s compliance with standard CVD procedures.” The groups say the U.S. ethanol industry remains committed to their partners in Colombia and will continue to help the country meet its blending targets and provide benefits to Colombian consumers so they may access a clean, renewable, and affordable fuel. The U.S. Grains Council develops export markets for barley, corn, sorghum, and related products like distiller’s dried grains with solubles and ethanol. Growth Energy represents producers and supporters of the ethanol industry to bring consumers better choices at the fuel pump. ********************************************************************************************** WASDE Report Says Corn, Soybean Production Will Rise in 2020 The May World Ag Supply and Demand Estimates report predicts higher corn and soybean production compared to last year. The corn crop is projected to be a record 16 billion bushels, up from last year on the increased area and a return to trend yield. The yield projection is 178.5 bushels, with total corn supplies predicted at 18.1 billion bushels. The season-average farm price is projected at $3.20 a bushel, a 40-cent drop from last year and the lowest since 2006-07. The soybean crop is projected to be 4.125 billion bushels, up 568 million from last year. Yield is expected to be 49.8 bushels per acre. Soybean supplies are predicted to rise five percent from last year to 4.72 billion bushels. The season-average soybean price is projected at $8.20 a bushel, down 30 cents from the previous marketing year. USDA says total wheat production will be three percent lower than last year, coming in at 1.866 billion bushels, with the all-wheat yield at 49.5 bushels per acre, which is down 2.2 bushels from last year. The projected season-average farm price for wheat is $4.60 a bushel, unchanged from last year. ********************************************************************************************** NASS to Resurvey North Dakota Farmers with Unharvested Corn, Soybeans During May, the National Agricultural Statistics Service will be contacting survey respondents in North Dakota who reported unharvested corn or soybeans. If the newly-collected data makes any changes necessary, NASS will then update the January 10 estimates in the June 11 Crop Production report. Stocks estimates are also subject to review since unharvested production is included in the on-farm stocks estimates. When NASS surveyed producers back in December for the Crop Production 2019 Summary, there was still significant unharvested acreage of corn in Michigan, Minnesota, North Dakota, South Dakota, and Wisconsin. There were unharvested soybean acres in Michigan, North Dakota, and Wisconsin. The unharvested area and expected production were included in the totals that came out on January 10. NASS contacted producers in Michigan, Minnesota, South Dakota, and Wisconsin, back in April and published updates in the May 12 Crop Production Report. NASS waited until now to re-contact North Dakota farmers because the state still had significant unharvested acres back in April.
| Rural Advocate News | Wednesday May 13, 2020 |
Washington Insider: Keeping Regs Abreast With Technology Bloomberg is reporting this week that federal regulators are dragging their heels in creating guidelines for the use of agricultural biostimulants, despite high demand from farmers for products such as seaweed, manure, kelp and peat. These are natural substances that farmers apply to plants, seeds, or roots to stimulate growth, nutrient uptake, or resistance to environmental stress. They’re similar to biopesticides, which use naturally occurring chemicals to kill pests. Congress directed USDA and EPA to draft a report proposing a regulatory framework for biostimulants as part of the 2018 Farm Bill. But almost a year-a-half later, attorneys say clear rules for how to register new products remain mired in uncertainty. “Companies are still asking us really basic questions, like, ‘Which agency has jurisdiction?’ and, ‘What labeling requirements do I need to meet?’” said Sheryl Dolan, a senior regulatory consultant at the Washington-based law firm Bergeson and Campbell PC. At the heart of the issue, Dolan said, is a failure to develop legal definitions for what constitutes a pesticide, which would be registered through the EPA under the Federal Insecticide, Fungicide, and Rodenticide Act. A fertilizer would be regulated at the state level. Determining exactly where to draw the line between pesticide and fertilizer isn’t always easy, companies say. The difference in costs can range from millions of dollars to register a conventional pesticide compared to hundreds of dollars for a fertilizer. Biostimulants aren’t defined under FIFRA or EPA regulations. But Dolan said that doesn’t mean regulators aren’t conducting enforcement actions, including stop-sale orders, for biostimulants they consider mislabeled as fertilizers. “If you’re investing millions of dollars into a product, you want to have sound compliance platform,” she said. “You don’t want to take risks, and there is significant gray area out there.” In response to pressure from the biostimulant industry EPA released a draft guidance document in March to help decide how to design labels for fertilizers, pesticides, and soil amendments. EPA said the draft wasn’t intended to change the regulatory framework but was merely to “clarify the agency’s longtime approach to determine whether a product and its label claims meet the definition of plant-growth regulator, subject to FIFRA registration.” However, the guidance generated more confusion. For example, it included a list of active ingredients that were already registered as fertilizers at the state level, but that EPA has now determined require registration under FIFRA,” said David Beaudreau, executive director of the U.S. Biostimulant Coalition. Now the EPA is revising the draft and responding to comments, including industry concerns and plans to reissue the draft later this year. Adding to the uncertainty is the fact that biostimulant products can sometimes share properties of both pesticides and fertilizers depending on whether it’s applied to the soil or leaves. Seaweed extract can function both as a soil amendment (fertilizer) or plant-growth regulator (pesticide), he said. Seaweed extract was listed in the EPA guidance as an example of an active ingredient that would require FIFRA registration. “So, do all those products have to go back through EPA approval? It’s created a lot of ambiguity,” Beaudreau said. Requiring naturally-derived ingredients to be registered as a pesticide would financially burden farmers and consumers by increasing costs throughout the supply chain, Jake Wilson of Atlantic Laboratories Inc., the parent company of North American Kelp, wrote to the EPA. “It is our belief that the guidance should take into consideration product label claims, not merely the presence of naturally derived ingredients,” Wilson wrote. Defining biostimulants and proposing a regulatory framework should be a process led by Congress in consultation with USDA a bipartisan group of five House members told EPA Administrator Andrew Wheeler in February. “While we appreciate EPA’s effort to provide regulatory clarity to the plant biostimulant industry, we are concerned that moving forward with the draft guidance will disrupt both congress and USDA’s efforts,” Rep. Chellie Pingree, D-Maine, wrote for the group. The lawmakers urged the EPA to delay releasing any final draft guidance until Congress could review USDA’s recent biostimulants report, which outlines six potential options to address the regulatory review, approval, and labeling of biostimulant products. “We don’t have luxury of ignoring our state laws,” Rose Kachadoorian, the pesticide program manager at the Oregon Department of Agriculture, said. State regulators aren’t opposed to biostimulant harmonization, Kachadoorian said, but the question of what constitutes a pesticide is best answered by EPA, not USDA. “If you don’t want something to be regulated as a pesticide, you have to go to the federal agency that regulates pesticides,” she said. “We just want to look at a label and be able to say, ‘Yes, this is a pesticide,’ or, ‘No, this is a soil amendment, or fertilizer,’” she said. So, this appears to be a fight producers should watch closely as it proceeds since it has at least some potential to increase the food system’s credibility with important consumer groups and increase returns to the sector, Washington Insider believes.
| Rural Advocate News | Wednesday May 13, 2020 |
Trump Dismisses Talk of Renegotiating Trade Deal With China A report in the Global Times suggesting that China may want to terminate the Phase One agreement with the U.S. and renegotiate the deal to be more beneficial to China. Asked at a White House briefing about the possibility, President Donald Trump said he had “heard that too” relative to the Global Times report. “They would like to reopen a trade talk to make it a better deal for them,” he said at a White House press conference. “I am not interested in that. Let's see if they live up to the deal they signed.” From the Chinese side, Foreign Ministry spokesman Zhao Lijian said the Phase One deal is a positive. "China and America reaching the Phase One trade deal benefits China, benefits the U.S. and the whole world," Zhao said at a briefing.
| Rural Advocate News | Wednesday May 13, 2020 |
Grassley, Others Call on Congress To Provide Pork Producers With Indemnity Funds Congress needs to consider funding efforts at USDA to help hog producers forced to depopulate herds due to the COVID-19 impacts on pork processing facilities, Sen. Chuck Grassley, R-Iowa, and 11 Senate colleagues said in a letter to House and Senate leaders. “The downstream impact of idled plants is full farms, creating an animal welfare crisis due to overcrowding and the challenge of providing enough feed and water available to each animal,” the letter said. Idling of processing plants means there is an “immediate need to establish processes whereby some portion of the herd is humanely euthanized to prevent animal suffering. Failure to have a sensible and orderly process for thinning the herd will lead to animal health issues, environmental issues, and pork producers going out of business.” This means pork producers “need assistance now,” the letter said, noting that if 20% of U.S. pork processing capacity is idled, that means some 400,000 hogs per week have to be disposed of in some manner. “Accordingly, government support is needed in the management of a sensible depopulation of the herd until plant operations stabilize,” the letter said. “We must prioritize funding to indemnify producers who are depopulating herds due to processing plant closures.” The lawmakers added that authority for such programs at USDA “should be authorized as quickly as possible.”
| Rural Advocate News | Wednesday May 13, 2020 |
Wednesday Watch List Markets Beyond weather and coronavirus news, traders will keep a close watch on Wednesday's weekly energy inventory report from the U.S. Energy Department. Ethanol production, inventory and gasoline demand will be the main attractions. The U.S. Labor Department will also have a report on producer prices out at 7:30 a.m. CDT. Weather Light to moderate rain will cross most of the Plains portions of the Northwest, and southern Midwest Wednesday. Impact will be variable, but northern planting will have further delays. Dry areas of the southwestern Plains will be bypassed by this moisture.
| Rural Advocate News | Tuesday May 12, 2020 |
Lawmakers Seek Help with Livestock Depopulation, Disposal A bipartisan group of lawmakers wants the Trump administration to provide guidance on how the Federal Emergency Management Agency can help farmers depopulate and dispose of livestock. Led by House Agriculture Committee Chairman Collin Peterson, a Democrat from Minnesota, the group sent a letter to the White House Friday. Specifically, the lawmakers request that the Administration allow for expenses related to livestock depopulation and disposal to be reimbursed under Category B of FEMA's Public Assistance program. A similar effort in the Senate led by Iowa Republican Chuck Grassley says farmers are facing an animal welfare crisis due to overcrowding and the challenge of providing enough feed and water to each animal. The Senate letter states pork producers send to market over two million pigs each week. If twenty percent of processing is idle, that means somewhere around 400,000 animals per week must be disposed of in some manner other than processing. ************************************************************************************ Rural Mayors Urge EPA to Protect Biofuel and Farm Jobs Mayors from across the U.S. farm belt Monday condemned oil industry efforts to seize markets from farmers and biofuel producers under the Renewable Fuel Standard. In a letter to Environmental Protection Agency Administrator Andrew Wheeler, 70 mayors called on the agency to “reject unjustifiable RFS waiver requests and protect rural communities.” The letter says the closures of ethanol plants, “is having devastating ripple effects throughout our economy.” The mayors say waivers to the oil industry would further damage rural communities. The letter was offered in support for America's biofuel producers, who have seen demand evaporate during the COVID-19 pandemic. More than 70 biofuel plants have completely shuttered their doors, and another 70 have significantly cut production amid demand losses stemming from the COVID-19 pandemic. Growth Energy CEO Emily Skor adds that when biofuel production shuts down, "everyone hurts – from farmers and truckers to meatpackers and ranchers that need animal feed and carbon dioxide for refrigeration." ************************************************************************************ USDA Approves $1.2 Billion in Food Purchases to Help America’s Needy The Department of Agriculture last week approved $1.2 billion in contracts for the Farmers to Families Food Box Program. The program is designed to connect excess meat, dairy and produce on farms with families facing food insecurity. The funding far exceeds the $100 million per month the department initially planned for the program, due to high interest and need. The program will purchase $461 million in fresh fruits and vegetables, $317 million in dairy, $258 million in meat and $175 million in a combination box of fresh produce, dairy or meat products. The American Farm Bureau Federation and Feeding America, the country’s largest hunger relief organization, sent a letter to the USDA requesting a nimble approach to quickly and effectively get food from America’s farms to the nation’s food banks and others addressing food insecurity. USDA is authorized to spend up to $3 billion through the Coronavirus Food Assistance Program. These initial contracts will distribute food from May 15 through June 30, 2020. ************************************************************************************ USDA Announces Agreements for Community Compost and Food Waste Reduction The Department of Agriculture Tuesday announced the availability of $900,000 for local governments to reduce food waste in landfills. The grants allow local governments to host a Community Compost and Food Waste Reduction pilot project for fiscal year 2020. The cooperative agreements will support projects that develop and test strategies for planning and implementing municipal compost plans and food waste reduction plans. The agreements are offered through USDA’s Office of Urban Agriculture and Innovative Production. USDA undersecretary Bill Northey stated food waste “shouldn’t end up in landfills when options like food recovery and composting are available." Northey says composting options "not only benefit communities and the environment, they can also provide farmers and urban gardeners with exceptional, nutrient-dense planting material." USDA will accept applications on Grants.gov until midnight June 26, 2020. Projects should span two years with a start date of October 1, 2020 and completion date of September 29, 2022. ************************************************************************************ New Research Shows Farmer Perspective on Data Collection, Sharing Several challenges prevent farmers from collecting and sharing data on their production practices with downstream supply chain organizations such as food companies and retailers. New research from Farm Journal's Trust In Food initiative and The Sustainability Consortium found 62 percent of farmers report they are not using data collection and sharing software during the 2019 season. Of those who did, only about 30 percent say the software meets all their needs. Farm-level production data plays a critical role in conservation and sustainability efforts. Despite this importance, according to previous research, nearly 50 percent of food and beverage companies report having no visibility into the on-farm practices that produce the inputs they use. Farmers say a lack of access to capital, equipment, training and reliable data networks are the biggest barriers farmers face in scaling up their on-farm data efforts. And, 71 percent of farmers said their primary ag adviser or consultant has never suggested increasing on-farm data collection, data sharing, or both. ************************************************************************************ U.S. Cotton Trust Protocol Selects Control Union Certifications The U.S. Cotton Trust Protocol Trust Protocol has selected Control Union Certifications North America to implement an independent, third-party verification program for the Trust Protocol system. The U.S. Cotton Trust Protocol will set a standard for more sustainably grown cotton. Data about Trust Protocol cotton is proven via Field to Market, measured via the Field Calculator, and now will be verified by Control Union Certifications. The company has certified more than 150 programs worldwide, including working as a key partner in the early development and piloting phases of Field to Market's Impact Claim Verification Protocol. U.S. cotton growers will complete a self-assessment of farming practices and share their field data through Field to Market’s Fieldprint Platform. Control Union Certifications will verify the Trust Protocol annual data that will highlight key sustainability metrics – land use, soil carbon, water management, soil loss, greenhouse gas emissions and energy efficiency. The U.S. Cotton Trust Protocol will launch in June 2020.
| Rural Advocate News | Tuesday May 12, 2020 |
Washington Insider: GOP and Red Ink Bloomberg is reporting this week that while Republicans seemed to accept programs that boosted recent deficits, the flood of pandemic-relief has rekindled deficit concerns among Republican lawmakers. It cites this as one of several hurdles facing the next round of stimulus many economists say is needed to pull the U.S. out of its downward spiral. After backing almost $3 trillion to offset the economic impact of the coronavirus, Senate Majority Leader Mitch McConnell, R-Ky., and other Republicans now have begun raising alarms about the deficit and characterizing a new relief package as an if, not when, proposition. President Donald Trump is also “tapping the brakes” on the idea of swift action on any new aid package, even after Friday’s Labor Department report showing an unprecedented 20 million jobs were lost in April. Nevertheless, Democrats are still pressing for another package of relief that will likely carry a trillion-dollar price tag, Bloomberg says. House Speaker Nancy Pelosi, D-Calif., even cited Fed Chairman Jerome Powell in a new push to spend more to rescue the economy. Still, Bloomberg thinks this shift “lags behind a change in thinking on the risks posed by deficits.” It notes that the ramped-up spending and lending following the last recession didn’t trigger the inflation critics had warned about. And, Europe endured a much slower recovery after pivoting to austerity budgets. Also, President Trump, who called himself “the king of debt,” has generally broken with Republican orthodoxy on deficits and spending, all while fully supporting the GOP on lowering taxes. Trump’s chief economic adviser, Larry Kudlow, said Sunday that the White House isn’t necessarily opposed to new relief legislation but “wants to pause and take a look at the economic impact of assistance programs already passed.” Nevertheless, Powell has urged lawmakers to deliver more fiscal stimulus and the U.S. Treasury says it may borrow a record $3 trillion this quarter alone. Powell says the debt is on an unsustainable course, but that, “this is not the time to act on those concerns.” For Democrats, there’s no question that there will be another relief package with few limits on how much it would cost. House Speaker Pelosi noted that state and local governments alone are clamoring for $1 trillion in federal aidâ??and that the House “may vote on an additional proposal as soon as this week.” She thinks the coming proposal will largely follow the contours of previous ones, with money for state and local governments, testing, expanded unemployment insurance, and “putting money into the pockets of Americans.” In a separate news conference Pelosi called the debt being racked up “an important challenge” that will have to be dealt with at some point, but that the focus right now needs to be on helping people and stimulating the economy. “The chairman of the Fed, Chairman Powell, has said again and again, publicly, and has said it to me, think big. Interest rates are very, very low. Think big, and that’s what we’re doing,” Pelosi told reporters. Others have expressed agreement and noted that the ballooning deficit -- projected to hit at least $3.7 trillion this year -- is bound to color tax and spending policy now and for years to come. For example, Ray Dalio, founder of the investment management firm Bridgewater Associates LP, told JPMorgan Chase & Co.’s private-banking clients to expect higher tax rates “no matter who wins November’s race for the White House.” Still, earlier tax cuts and the business bailouts have dimmed any hopes of a fundamental restructuring of the federal budget according to conservative economist Brian Riedl, a fellow at the Manhattan Institute and former adviser to several senior Republicans, including Senators Rob Portman, Mitt Romney and Marco Rubio. But, while the Republican Study Committee, for example, a group of House conservatives, is lobbying for the next package to offset any new borrowing with longer-term savings, Senate leadership hasn’t coalesced around any specific plan for future spending or cuts. And, pressure for relief is intensifying. Zach Moller, an economist at Democratic-aligned group Third Way think tank, which has proposed a sweeping proposal to save states’ budgets, said he fears a premature emergence of deficit concerns could hamper the recovery from the COVID-19 pandemic. “We saw what could happen the last time,” Moller said. “From 2009 to 2013, state governments cut hundreds of billions of dollars in spending. Recovering from the Great Recession was made a lot longer because of the relatively limited state and local aid we were able to provide.” So, it seems that the pandemic and its impacts are continuing to drive fiscal policy and likely will continue to do so until significant recovery seems assured, amid growing controversies that producers should watch closely as these fights intensify, Washington Insider believes.
| Rural Advocate News | Tuesday May 12, 2020 |
USDA Approves Contracts For COVID-19 Food Aid USDA Friday announced it has approved $1.2 billion in contracts under the USDA Farmers to Families Food Box Program, noting that the effort will start distributing food “within days.” USDA published a list of approved suppliers for the program. President Donald Trump took to social media Saturday to note the situation, tweeting, “Starting early next week, at my order, the USA will be purchasing, from our Farmers, Ranchers & Specialty Crop Growers, 3 Billion Dollars worth of Dairy, Meat & Produce for Food Lines & Kitchens. “FARMERS TO FAMILY FOOD BOX” Great news for all!” USDA’s Ag Marketing Service said the effort will spend $461 million on fresh fruit and vegetable boxes, $317 million for dairy boxes, $258 million for meat boxes and $175 million for boxes that combine fresh produce, dairy or meat products.
| Rural Advocate News | Tuesday May 12, 2020 |
FSA Starting To Issue Some Guidance on CFAP USDA’s Farm Service Agency (FSA) has started the process of preparing state and county offices for the coming Coronavirus Food Assistance Program (CFAP), alerting offices that they may be dealing with producers that have never dealt with the agency previously. For those growers, FSA offices will need to collect several forms relative to verifying eligibility for CFAP payments, including farm income certifications. On the key topic of pay caps, FSA said details on that will be issued in the handbook which will cover operation of the program. The final rule was sent to the Office of Management and Budget (OMB) May 5 and it still was listed as being under review as of late Monday.
| Rural Advocate News | Tuesday May 12, 2020 |
Tuesday Watch List Markets Grain traders will assess several new old-crop and new-crop estimates in Tuesday WASDE and Crop Production reports, due out at 11 a.m. CDT. NASS will also have a new survey of 2019 corn and soybean production for northern states. The U.S. Labor Department releases a report on consumer prices in April at 7:30 a.m., followed by the Treasury Department's federal budget at 1 p.m. CDT. Weather Tuesday will be cool across the central U.S., hindering crop progress. Freezing temperatures in the northern Midwest may cause some damage to emerged crops. Rain will focus on the southeastern Plains and portions of the Delta. We'll also see light mixed precipitation in the western and northwestern Plains.
| Rural Advocate News | Monday May 11, 2020 |
Farm Bankruptcies are Rising Recently released data from U.S. Courts show that farm bankruptcies increased 23 percent year-to-year. An American Farm Bureau Market Intel report shows a total of 627 filings took place during a 12-month period that ended in March of 2020. That makes five straight years of Chapter 12 bankruptcy increases, including a faster rate of filing since January of this year. Wisconsin was the hardest hit with 78 filings during those same 12 months. Nebraska was next with 41 filings and Iowa was third with 37. More than 50 percent of the Chapter 12 filings took place in the thirteen states of the Midwest, followed by 19 percent in the Southeast. “Each bankruptcy represents a farm in America struggling to survive or going under, which is both heartbreaking and alarming,” says Farm Bureau President Zippy Duvall. “Even more concerning, the difficulty in staying afloat is made worse by the pandemic and related shutdowns as farmers are left with fewer markets for their products and lower prices for the products they do sell.” Currently, the bankruptcy filing increase isn’t related to the pandemic. That is certain to change as U.S. unemployment is projected to reach over 14 percent in the second and third quarters. A decline in off-farm income will hurt small and medium-sized farms that often rely on off-farm income to supplement their bottom lines. ********************************************************************************************** China Purchases U.S. Corn The USDA says Chinese buyers purchased 686,000 metric tons of U.S. corn last week. Over 370,000 tons will be delivered in the 2019-2020 marketing year, with the rest going overseas in 2020-2021. This seems to suggest that China is following through on its obligations in the Phase One trade deal. In a statement to Agri-Pulse last week, the U.S. Grains Council says, “China’s recent purchases of U.S. corn place the country back in the top five markets for U.S. corn, which is promising news for American farmers during this critical time. China has been a strong customer for U.S. corn, sorghum, DDGs, and ethanol in past years.” USGC is hopeful that Chinese customers will continue finding a lot of value in U.S. coarse grains and related products in the years to come. The purchase of 315,000 tons announced last Thursday was especially large, almost triple the export sales for 2020-2021 corn in the entire week of April 24-30. That was 97,500 tons to buyers mostly located in Japan and Panama. Bryan Lohmar is the China Director for the USGC. He says, “We’ve already seen exports greater than the past few years, and China typically buys the most corn during summer months when its own supplies get tighter and domestic prices firm up.” China’s corn-buying began back in March with a purchase of 756,000 tons, reported on the same day the Asian nation bought 340,000 tons of U.S. wheat. ********************************************************************************************** Multiple Meatpackers Will Reopen This Week Ag Secretary Sonny Perdue says meatpacking facilities across the U.S. will be reopening this week. He says the companies are opening up again “safely” and are a critical part of the nation’s infrastructure. These facilities have resumed or plan to resume operations this week following an Executive Order from President Trump directing the facilities to implement the Centers for Disease Control and Prevention and the Occupational Health and Safety Administration guidelines specifically created for the meat and poultry sector response to COVID-19. The USDA has been working around the clock with the CDC and state and local health officials to ensure a safe and stable supply of protein is available for American consumers while keeping packing company employees safe. “America’s meatpacking facilities are reopening safely to ensure that America’s producers and ranchers will be able to bring their product to market,” Perdue says. “I want to thank the patriotic and heroic meatpacking facility workers who are returning to work this week so the millions of Americans who depend on them for food security can continue to do so.” Plant locations in Iowa, Kentucky, Maine, Washington, Nebraska, Wisconsin, Minnesota, South Dakota, and Illinois are slated to get back to work this week. ********************************************************************************************** Biofuel Groups Grateful for Support in Washington, D.C. Two-dozen senators recently sent a letter to the Environmental Protection Agency calling on the Trump Administration to reject calls to alter or get rid of the Renewable Fuels Standard. The letter says it is nothing but an oil industry-backed effort to get rid of biofuels. The senators wrote that waiving the RFS would exacerbate the effects experienced by the biofuel sector as a result of COVID-19, causing far-reaching detrimental impacts on employment, farmers, food security, fuel prices, and the environment. “We are grateful for our champions who stand shoulder-to-shoulder with rural communities confronting a wave of biofuel plant closures, farm bankruptcies, and demand destruction amid the COVID-19 pandemic,” says Growth Energy CEO Emily Skor. “The oil industry’s attempt to steal markets from farmers and biofuel producers threatens to dash hopes of an economic recovery in the farm belt.” Kurt Kovarik, Vice President of Federal Affairs at the National Biodiesel Board, says, “America’s biodiesel producers appreciate the strong leadership of the senators who oppose the efforts to undermine the RFS. Maintaining a strong RFS will be critical to the rural economy’s recovery.” ********************************************************************************************** McCarthy Setting up a “Chinese Task Force” House Minority Leader Kevin McCarthy announced he’s forming a Republican “China Task Force,” citing Chinese ownership of Smithfield Foods as part of the reason behind the move. The Hagstrom Report says McCarthy found it interesting that “China owns a processing plant in South Dakota” and wondered if that could be a challenge for the U.S. food supply. McCarthy says the task force will include representatives from 10 congressional committees and will look deeper into the U.S.-China relationship. There were Democrats included in the original formation, but they dropped out, which McCarthy criticized them for. The task force recommendations could influence the agricultural trade relationship between the two countries because trade is typically more robust when the relations with China are solid. The Hagstrom Report quotes a senior Democratic aide who says those on that side of the political fence are “very cognizant of the need to hold China accountable for its actions.” However, the aide says, “To that extent, this is going to be the Trump Administration’s scapegoat for its utter failure, we are not going to go along with any of that.” ********************************************************************************************** Washington Potato Growers Give Away Potatoes to Avoid Food Waste Washington is number two in the nation when it comes to growing potatoes, sitting behind only Idaho. The Washington State Potato Commission says a billion pounds of russet potatoes that would normally become French fries and hash browns are just sitting in warehouses that would need to empty out just ahead of the July harvest. The organization is instead handing out the surplus for free to Washington residents, 100,000 pounds at a time. Reuters quotes Brandy Tucker, the director of marketing for the commission, as saying, “Everyone in Washington would have to eat 500 pounds of potatoes from now until the Fourth of July to clear our pipeline.” About 90 percent of Washington’s potato crop is processed for food service industries, nearly half of which is international markets. The commission is planning over a dozen donation events before the end of this month. However, even giving them away comes at a cost because of washing, bagging, and shipping the spuds. The USDA says it will buy an additional $470 million in excess food, which includes $50 million worth of potatoes, to give to the nation’s food banks.
| Rural Advocate News | Monday May 11, 2020 |
Washington Insider: Meat Industry Under Attack Livestock and poultry production have long been key components of the U.S. ag industries. The combination of efficient grain feeds production and sophisticated high carbohydrate finishing operations have made U.S. meats the envy of much of the worldâ??as well as a valued source of revenue for U.S. producers. Still, pockets of vegetarianism long have persisted especially among elite, urban “foodies,” largely in developed countries. These have become increasingly active, of late. The cause is mainly threatened shortages of meat products that are prompting many Americans to give plant-based alternatives a “try”, The Hill says. It thinks this trend might allow “a previously marginalized industry to quickly expand.” The report focuses on virus outbreaks at meatpacking plants “where workers have tested positive and several have died” forcing facilities to close. It also notes concerns about meat shortages at grocery stores and fast food chains. That’s created an opening for companies like Beyond Meat, Impossible Foods and Tofurky, the report says. “We knew that people were turning towards plant-based for a number of reasons including health reasons. And now, to avoid meat shortages,” said Michele Simon, executive director at Plant Based Foods Association. Simon said all of the association’s 175 members have been feeling the increase in demand right now, building on growth from before the outbreak. Beyond Meat this week reported first quarter net revenues up 141% from the same period in 2019, to more than $97 million compared with $40 million last year. The company’s stock surged 26%. CEO Ethan Brown said on TV, “I think we are reaching a tipping point for plant-based foods due to the COVID-19 impact on the U.S. meat supply.” These threats also have allowed other firms to accelerate their growth, The Hill thinks. For example, Impossible Foods, which makes the Impossible Burger, has increased its outlets from 150 grocery stores nationwide to 2,700 in April alone. It plans to have its products sold in more than 10,000 stores by the end of the year. But with restaurants either closed or slowly opening, companies are looking to grocery store sales to pick up the slack since almost all of them have stayed open during the pandemic. Plant-based competitor Tofurky claims 40% growth in grocery stores in the past 12 weeks compared to the same period in 2019, said Jaime Athos, CEO of Tofurky. Plant-based brands also are looking to big K Street firms to help with their growth. Impossible Foods has BGR Group on retainer, including lobbyists Remy Brim, former senior health policy adviser to Sen. Elizabeth Warren, D-Mass., and Robb Walton, who held the same position under Sen. Bill Cassidy, R-La. The company spent $170,000 on lobbying in 2019 and $60,000 so far this year. Meanwhile, major meatpacking companies JBS, Smithfield Foods and Tyson Foods are being questioned by lawmakers about working conditions following coronavirus outbreaks at their plants. However, it’s not clear whether the surge in sales will last beyond the pandemic or the current meat shortage, The Hill says. The administration ordered meat plants to stay open last month in an attempt to head off future disruptions and Agriculture Secretary Sonny Perdue on Wednesday predicted that U.S. meatpacking plants will fully reopen in the next seven to 10 days. “That certainly has focused attention on the problems meat causes in the food system: factory farming, concentration in the meat industry, brutal working conditions for meatpacking employees, and meat industry control of USDA policy,” said Marion Nestle, professor of food studies at New York University. Still, the plant-based industry has also been caught up in legislative fights over whether their products can use the term meat. Mississippi restricted the use of the term for these companies, in 2018, but the Plant Based Foods Association thinks that the policy fight has “quieted down with governments otherwise occupied with more important matters” during the pandemic, The Hill says. But one thing meatpacking companies and their plant-based competitors have in common is the need to ensure workplaces are revamped to prevent the spread of COVID-19. Benjamin Chapman, food safety specialist at North Carolina State University, said food production plants overall, regardless of the product, create a difficult setting for social distancing. “What we’re seeing right now with these clusters isn’t about the meat operations but is much more about plants in general and essential food workers being close to each other because of the process and the challenges to implement social distancing. That can happen in many food settings, not just meat,” he said. Impossible Foods and Tofurky are among those who say they have implemented strict rules and practices regarding social distancing and disinfecting. “The long-term trend is unquestionably moving towards a plant-based food system,” an industry observer said. “This is happening no matter what. Does the current glimpse into the sausage factory accelerate that?” So, we will see. The current threat to conventional meat consumption seems more serious than most, and better funded. However, the conventional meat and poultry producers have enormous resources that can be used in this fight, even though the new virus is raising far reaching threats that should be taken seriously across the industry, Washington Insider believes.
| Rural Advocate News | Monday May 11, 2020 |
USDA’s Perdue signals Increase in CFAP Payment Limits As expected, USDA Secretary Sonny Perdue has responded to the high level of complaints that the initial payment caps under the coming Coronavirus Food Assistance Program (CFAP) were not enough. Perdue now says they will be higher than initial suggestions. Perdue made the comments in interview with Brownfield Ag News. “We have adjusted those payment limits and we will see those when the rules come out,” he said. The agency sent the final rule for CFAP to the Office of Management Budget (OMB) for their review May 5.
| Rural Advocate News | Monday May 11, 2020 |
US, China Hold Discussions on Phase One Agreement Progress U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steve Mnuchin and Chinese Vice Premier Liu He held a conference call late Thursday, discussing economic and trade issues and the phase-one agreement between the two countries. “The parties shared updates on COVID-19 and their assessments of its effects on economic growth as well as the measures their countries are taking to provide support to their economies,” Lighthizer and Mnuchin said in a statement. On the phase-one deal, “Both sides agreed that good progress is being made on creating the governmental infrastructures necessary to make the agreement a success,” the statement said. “They also agreed that in spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner.” The statement also indicated that the “meetings required by the agreement have been conducted via conference call and will continue on a regular basis.” A similarly brief recap of the discussion was reported in China, with the Xinhua News Agency reporting, “The two sides agreed that they should enhance macroeconomic and public health cooperation, create a favorable atmosphere and conditions for the implementation of the China-U.S. Phase-One trade deal, and strive for positive outcomes. They also agreed to maintain communication and coordination.” The session and statements came as President Donald Trump earlier this week indicated the U.S. could end the agreement if China did not live up to its purchase comments. Wednesday, Trump indicated that in the next week or two he would be able to comment on the implementation of the trade deal.
| Rural Advocate News | Monday May 11, 2020 |
Monday Watch List Markets Fresh off the weekend, traders will be checking reports of freezing temperatures around the Corn Belt and the new seven-day forecast. Coronavirus statistics, trade news and progress in raising livestock slaughter levels will also be watched. Monday's usual reports include weekly export inspections at 10 a.m. CDT and Crop Progress at 3 p.m. CDT. Weather Light to moderate rain is in store for the Southern Plains Monday, offering some useful moisture for winter wheat. We’ll also see a mix of light rain and snow in the north-central Plains and light rain in the far eastern Midwest. Other primary crop areas will be dry. Freezing temperatures occurred in the Midwest and Northern Plains during the past weekend and are again noted early Monday. Fields will be scrutinized this week for damage assessment.
| Rural Advocate News | Friday May 8, 2020 |
Pork Exports Hit All-Time High in March Spurred on by record production, U.S. pork exports completed a tremendous first quarter with new March records for both volume and value. Data released by USDA and compiled by the U.S. Meat Export Federation says beef exports also trended higher year-over-year in March, establishing a record first-quarter pace. “March export results were very solid, especially given the COVID-19 related challenges facing customers in many international markets right now,” says USMEF President and CEO Dan Halstrom. “Stay-at-home orders created enormous challenges for many countries’ foodservice sectors, several of the world’s key currencies slumped against the dollar, and logistical obstacles surfaced in some key markets. However, demand for U.S. red meat proved very resilient.” Recent events like temporary plant closures aren’t reflected in the first-quarter export data. Pork exports, driven by strong demand from China, Hong Kong, Mexico, Japan, and Canada, totaled well over 291,000 metric tons, a 38 percent increase from last year. The export value was up to more than $764 million. March beef exports were over 115,300 metric tons, seven percent more than last year, while the value was more than $702 million, four percent higher than 2019. ********************************************************************************************** Path Cleared for U.S. Sorghum Exports to Vietnam The door is open for U.S. sorghum exports to flow into Vietnam for high-value uses like pet food and liquor, as well as feed for the aquaculture, poultry, and swine industries. A new pest risk assessment has been approved by both the USDA and Vietnam’s Ministry of Agriculture. The opening is a result of almost five years of work by the U.S. Grains Council, the United Sorghum Checkoff Program, and the National Sorghum Producers, as well as the USDA’s Foreign Ag Service and APHIS. “We are excited to see our hard work and collaboration pay off in Vietnam,” says USGC President and CEO Ryan LeGrand. “It’s been a long time coming but it is a model of how by working together with industry and government, good things can happen for U.S. commodities.” The pest risk assessment outlines how U.S. sorghum must be handled to meet regulations in Vietnam. The assessment became even more critical after a shipment of sorghum destined for China in 2018 was diverted to Vietnam but couldn’t be delivered because there was no pest risk assessment protocol in place. ********************************************************************************************** Trump: Will Know Next Week if China Making Progress on Phase One Deal Top negotiators from China and the U.S. will talk next week about the progress on the Phase One Trade Deal between the two countries. Bloomberg says the move comes after President Donald Trump threatened to terminate the agreement if Beijing doesn’t meet its obligations. The planned phone call will be the first time the Chinese Vice Premier and U.S. Trade Representative Robert Lighthizer will talk about the agreement since it was signed in January. That was just before COVID-19 hit the world’s two largest economies and turned the world’s global supply chains upside down. Trade numbers this week showed a sharp drop in U.S. exports to China when compared to the 2017 benchmark levels, which in turn caused doubt that Beijing would meet its obligation to buy at least $262 billion in U.S. agriculture, manufacturing, and energy goods. Beijing hasn’t yet removed many of its dumping duties on U.S. imports. Trump recently told reporters that he’d be able to tell them within the next two weeks if he’s happy with how the trade deal is progressing. Relations have been strained since the coronavirus outbreak. Trump says China misled the world about the scope and risk of the disease. China says U.S. officials are trying to “shift their responsibility for the poor handling of the disease.” ********************************************************************************************** Farm Credit Council Supporting Rebuild Rural Letter to Congress Farm Credit Council President and CEO Todd Van Hoose says his organization supports the Rebuild Rural Coalition’s letter they sent to Congress. “Parents working and students studying from home has brought the urban/rural divide on broadband to the fore in a way we can no longer afford to ignore,” Van Hoose says. “That same broadband would help rural residents avoid medical appointments through tele-health initiatives, thereby decreasing their exposure to others at the hospitals and clinics.” The coalition is also concerned about several other aspects of rural infrastructure, noting that we’ve already seen the problems with our food supply chain. “Once these processing plants return to normal operations, they will rely on roads, bridges, locks, and dams, many of which are all crumbling, to transport protein to consumers,” Van Hoose adds. “As Congress considers future COVID-19 relief packages, they need to prioritize rural America’s infrastructure.” The Rebuild Rural coalition is made up of more than 250 local, state, and national organizations from across the country that collectively represent U.S. agricultural producers, cooperatives, rural businesses, as well as rural communities and the families that live in them. ********************************************************************************************** Duties to Stay on Biodiesel from Argentina The National Biodiesel Board is pleased that the Department of Commerce will keep countervailing duty orders on imports of Argentinian biodiesel. The Commerce Department made the determination after its “changed circumstances review” of the anti-dumping duty. The department determined that there are no “changed circumstances” that would warrant any changes in U.S. duty rates. That means the rates on imported biodiesel from Argentina will stay at their current levels. Kurt Kovarik is the NBB Vice President of Federal Affairs, who says the NBB’s Fair Trade Commission fought hard for this outcome. “We certainly appreciate Secretary Wilbur Ross and the administration for supporting U.S. biodiesel producers at a critical moment. We are also grateful that they took the time to listen to U.S. biodiesel producers.” The NBB says the Department of Commerce took the time necessary to fully evaluate the status of Argentina’s export tax regime and made the right decision. “Also critical to the outcome is the support and leadership of Senators Chuck Grassley and Maria Cantwell, along with Representative Darren LaHood,” Kovarik adds. “The U.S. biodiesel industry appreciates their help in amplifying the industry’s push for fair trade conditions.” ********************************************************************************************** Specialty Crop Industry Protocols Keep Workers Safe During COVID-19 A national coalition of 64 organizations representing specialty crop producers sent a letter to Congressional leadership this week on safety protocols within the industry during COVID-19. They want Congress to know the steps agricultural employers are taking to protect their workers. “Farmers and ranchers across the country moved quickly to implement new employee safety protocols early in the crisis,” says National Council of Agricultural Employers President Michael Marsh. “While America was being placed on lockdown, agricultural employers were already at work trying to figure out how to best protect their employees and the public.” The letter details the collaboration between the agriculture industry, public health experts, and regulatory officials to develop the best safety practices in the field and packing. As future rounds of COVID-19 pandemic legislation is debated, the coalition is asking congressional leaders to acknowledge the widespread employee protection protocols that are already in place, as well as provide additional support to help agricultural employers continue to meet the needs of their employees. The Western Growers Association, a member of the coalition, is asking Congress to “extend current relief efforts for agriculture, and to include additional funding for personal protective equipment and other measures to offset the costs of maintaining an essential workforce during COVID-19.”
| Rural Advocate News | Friday May 8, 2020 |
Washington Insider: Food System Pressures Bloomberg is reporting this week that the Trump administration is considering action against the China trade deal, and that top Chinese and U.S. trade negotiators will speak as soon as next week on progress in implementing the first phase. The administration says it will “terminate” the agreement if Beijing doesn’t adhere to its terms. Chinese Vice Premier Liu He will be on the call, Bloomberg said while the U.S. will be represented by USTR Robert Lighthizer. The planned phone call will be the first time Liu and Lighthizer have spoken officially about the agreement since it was signed in January, just before the global coronavirus pandemic erupted. The president also seemed to suggest a “development” was on the horizon when he told reporters at the White House on Wednesday that he’d be able to report in the next week or two “if he’s happy” with how the trade deal is progressing. On Sunday, in response to a question at a town hall from a business owner who said he was losing money on the tariffs, the president noted that the duties “prompted” China to promise to buy $250 billion worth of U.S. goods. “Now they have to buy,” he said. “And if they don’t buy, we’ll terminate the deal, very simple.” Relations between the U.S. and China have deteriorated further since America became one of the countries hardest hit by the coronavirus. The president has blamed China for misleading the world about the scale and risk of the disease, and even threatened more tariffs as punishment. China’s foreign ministry has in turn accused some U.S. officials of trying “to shift their own responsibility for their poor handling of the epidemic to others.” In addition, the coronavirus pandemic’s economic toll is leading to fresh criticism for the World Trade Organization from Washington, this time from a Midwestern lawmaker who sees the pandemic as an opportunity “to rebuild America’s standing in the global economy.” Sen. Josh Hawley, R-Mo., wrote on the New York Times op-ed page this week that the WTO “should be abolished on the grounds that it has failed American workers.” He called for the U.S. to stop Chinese imperialism and renegotiate trade deals with allies, he wrote, saying that “abandoning the WTO is a start.” While the U.S. government lacks authority to close down the WTO single-handedly, the missive from Hawley echoes many of the complaints the Trump administration brought to office in 2017. It also reflects the hardening of some Americans’ views about China and the growing list of “scapegoats” sought for the economic calamity the country now faces, Bloomberg said. In the meantime, Agriculture Secretary Sonny Perdue said he expects that U.S. meatpacking plants will “fully resume operations within a week to 10 days.” The comment came during a meeting with Iowa Gov. Kim Reynolds and President Trump, who said that the U.S. has “plenty of supply” of meat and argued that “within a week and a half, we’ll be in great shape. Maybe sooner,” he said. So, we will see. There are strong notes of skepticism emerging in the press now, especially following news reports that highlighted the destruction of significant amounts of food products including hogs and milk. There also are stories of states and others pushing back on price gouging for eggs and other products. Certainly, the U.S. food system is resilient as well as efficient as the President and Secretary noted, but the current tensions and threats are enormous and far reaching and should be watched closely by producers as the system accommodates, Washington Insider believes.
| Rural Advocate News | Friday May 8, 2020 |
USDA’s Perdue Says Corner Turned on Meat Plants Resuming Operations U.S. meat plants are starting to reopen, USDA Secretary Sonny Perdue said in remarks at the White House Wednesday. “The plants are reopening in Iowa and other places. We may have still a few closed, but we are working,” Perdue said during a meeting between President Donald Trump and Iowa Governor Kim Reynolds. “They are opening this week. And I think we have turned the corner, based on that commonality of uniform standards there.” He noted that “we have turned the corner. We see these plants coming back on line. Obviously, because of some infected employees, they will not be full force for a while, but we think the stores will be… you will see more variety and more meat cases fully supplied.” Asked for a timeline for that to happen, Perdue predicted “probably a week to 10 days where it is fully back up.”
| Rural Advocate News | Friday May 8, 2020 |
Trump Says DOJ Has Been Asked To Examine Antitrust Issues In Meat Industry The Department of Justice has been asked to examine antitrust issues in the meat industry, according to President Donald Trump. "I have asked the Justice Department to look into it," Trump said in remarks during a meeting with Iowa Governor Kim Reynolds Wednesday. "I have asked them to take a very serious look into it because it should not be happening that way." He specifically noted the exam will look at the divergence between cash cattle prices and prices consumers pay in stores for beef. "Why is there disparity? What's going on? Are they dealing with each other? What's going on? Okay? Because it shouldn't be that way. Supply and demand should not allow that to happen, by normal supply and demand," Trump stated. A Justice Department spokeswoman confirmed that Trump has asked DOJ to probe antitrust issues in the meat industry. The statement from Trump comes as attorneys general from Iowa, North Dakota, Colorado, Missouri, Montana, Arizona, Idaho, Minnesota, Nebraska, South Dakota and Wyoming made a similar plea to DOJ relative cattle producers.
| Rural Advocate News | Friday May 8, 2020 |
Friday Watch List Markets The U.S. Labor Department has the unpleasant task of reporting a likely drop in nonfarm payrolls and higher unemployment rate in April at 7:30 a.m. CDT. The numbers may not shock the market, but will be stark reminders of how much the economy has contracted in the effort to stop the spread of the coronavirus. Friday morning's low temperatures, trade news and updates of meat processing plants will also be watched. Weather Friday will bring moderate to locally heavy rain to the southeastern Midwest and Delta. Other crop areas will be dry. A strong cold wave will steadily move into the Midwest Friday night and Saturday, with widespread subfreezing temperatures. The cold will slow down crop emergence and may kill some Midwest winter wheat. The brunt of the cold air is not indicated to affect Southern Plains wheat areas.
| Rural Advocate News | Thursday May 7, 2020 |
Perdue Releases Letters on Meatpacking Investigation Agriculture Sonny Perdue this week sent two letters to Governors across the nation and leadership of major meat processing companies regarding the reopening of meat processing facilities. The letters establish the Department of Agriculture's expectations for the implementation of President Donald Trump's Executive Order signed last week. The President's Executive order directs plants to follow the Centers for Disease Control and the Occupational Safety and Health Administration guidance specific to the meat processing industry to keep facilities open while maintaining worker safety. USDA expects state and local officials to work with meat-processing facilities to maintain operational status while protecting their employees' health. USDA has also directed meat and poultry processing plants currently closed and without a clear timetable for near-term reopening to submit to USDA written documentation of their protocol, developed based on the CDC/OSHA guidance, and resume operations as soon as they are able after implementing the guidance. ************************************************************************************ Meat Plant Closures Tightening Supplies The reduction of meat processing capacity caused by U.S. plant closures and slowdowns has created a massive bottleneck in the nation's meat and livestock supply chain. Nearly two dozen plants that process beef and pork products closed in April due to the COVID-19 outbreak, while many others have had to slow their production as a result of the disease. According to a new report from CoBank, even if the reduction of processing capacity is temporary, it will likely have a lasting impact on meat processors, livestock producers, retail stores and consumers. Meat supplies for retail grocery stores could shrink nearly 30 percent by Memorial Day, leading to retail pork and beef price increases as high as 20 percent relative to prices last year. This week, Midwest-based grocery chain Hy-Vee announced limits on customer purchases of meat products. Customers are limited to four packages of a combination of fresh beef, ground beef, pork and chicken when they checkout at all store locations. Costco announced similar limits earlier this week, as did Sam’s Club. ************************************************************************************ Bill Would Increase CCC Borrowing Authority A bill introduced in the U.S. House of Representatives this week would expand the Commodity Credit Corporations annual borrowing authority. The legislation from Republican Representative Austin Scott of Georgia would raise the CCC’s borrowing authority from $30 billion to $68 billion. Scott says the move would give the Department of Agriculture greater flexibility to maintain farm bill programs that support farmers and stabilize domestic agricultural markets. By raising the CCC’s borrowing limit, Scott says USDA would have greater ability to address the economic effects that COVID-19, volatile markets, and other factors have had on rural America. The CCC’s borrowing authority was last adjusted to $30 billion in 1987. Since then, agriculture has faced many challenges, one of the most difficult being the economic impacts of COVID-19. Last month, an analysis by the American Farm Bureau Federation showed that if adjusted for inflation, the borrowing limit for the CCC would be nearly $68 billion, as proposed by Representative Scott’s legislation. ************************************************************************************ Gillibrand Introduces Bill to Connect Farms and Food Banks New legislation introduced in the Senate addresses disruptions in the food supply chain caused by the coronavirus pandemic and directly connect farms to food banks. The bill was introduced this week by Senator Kristen Gillibrand, a Democrat from New York, who also sits on the Senate Agriculture Committee. As foodservice entities cease operations to combat the COVID-19 pandemic, reports have emerged that millions of pounds of produce have been left to rot. Meanwhile, food banks across the country are facing unprecedented demand, as millions of newly unemployed Americans now face food insecurity. Senator Gillibrand's proposed Food Bank Access to Farm Fresh Produce Act would provide $8 billion in block grants to food banks in the top vegetable and fruit producing states. Food banks will be able to use the funds to purchase fresh produce directly from farmers. They will also be able to use the funding to pay for distribution, processing, and additional staff needed to meet increased demand. ************************************************************************************ Report: Congress May Seek Oversight of NIFA, ERS Move A new report suggests Congress may consider additional oversight of the location change of two Department of Agriculture agencies. The Congressional Research Service report out this month says, “Congress may consider exercising oversight of USDA implementation of the relocations and any benefits as anticipated by the Congressional Budget Office.” Last year, USDA relocated most staff positions at two of its research agencies, the National Institute of Food and Agriculture and the Economic Research Service to Kansas City, Missouri, from Washington, D.C. The move was expected to save $300 million over 15 years, according to the CBA analysis. The report states about 75 percent of affected employees declined to relocate and left the agencies. The report says that NIFA grantees have experienced delays in receiving awarded funds, which are typically released one to two months after the start of the next fiscal year. Further reports cite USDA internal memos suggest that ERS has delayed or discontinued numerous reports. ************************************************************************************ BASF Donates $170,000 to Feeding America BASF Corporation will join COVID-19 hunger relief efforts with a $170,000 donation to Feeding America. The company's North America Agricultural Solutions employees in the U.S. hosted a virtual food drive in March and April to support Feeding America food banks across the country. The contribution will help their food banks secure nutritious food and resources to serve neighbors in need during the pandemic. BASF employees throughout its Agricultural Solutions division participated in the virtual food drive by making financial contributions online. BASF matched donations dollar-for-dollar for the virtual food drive. All funds raised online, including the BASF match, will be donated to Feeding America member food banks based on donor zip codes. This gives employee donors the opportunity to help their own communities and make an impact where they live. BASF will donate an additional $195,000 to Feeding America. The gift includes a $150,000 corporate donation and $45,000 from BASF's largest facilities in Michigan, Texas, and Louisiana. In total, BASF will contribute more than $365,000 to Feeding America's COVID-19 hunger relief efforts.
| Rural Advocate News | Thursday May 7, 2020 |
Washington Insider: Watching the Grocery Supply Chain Bloomberg wrote this week about stresses facing the U.S. meat supply as plants shut down and employee absences grew. Grocers from Kroger Co. to Costco Wholesale Corp. are rationing supplies, the report says, and notes that “even Wendy’s Co. dropped burgers from some menus.” Prices for wholesale beef and pork have jumped more than 20% since the imposition of the federal executive order to keep plants running during the pandemic. The shortages and price increases underscore the challenges of quickly fixing America’s “broken” meat supply chain, Bloomberg says. The virus impact has been heavy for meatsâ??for example, a Tyson Foods Inc. plant in Perry, Iowa, had 730 positive cases, about 58% of employees, Sarah Reisetter, deputy director for the state’s health department, said Tuesday and experts are warning not to expect a quick rebound for supplies. The reports of shortages are causing considerable anxiety, Bloomberg says and thinks that retail grocers could see meat supplies shrink almost 30% by Memorial Day, leading to retail pork and beef price inflation as high as 20% relative to prices last year, according to agricultural lender CoBank. Iowa-based Hy-Vee Inc. on Tuesday became the latest grocer to limit meat purchases. Shake Shack Inc., executives warned investors a day earlier to expect much higher beef prices. In addition, the urban press is focusing on the industry’s concentration as a cause, along with its massive regional processing facilities. For current supply bottlenecks to ease, those plants “need to come back at full speed,” Bloomberg says, a challenge it calls “formidable” given the intense need to ramp up safety measures to reduce current rates of infection. Also, meat plants have become coronavirus “hot spots” in some cases as the disease spread quickly among “elbow-to-elbow conditions” on processing lines that move at “lightning speed,” Bloomberg said. Iowa’s Department of Public Health on Tuesday revealed large coronavirus outbreaks at several major meat-processing facilities in the state. For example, in addition to the infections at the Perry plant, a Tyson facility in Waterloo had 444 positive cases, or 17% of employees. Iowa Premium National beef in Tama had 258 cases, 39% of employees. How USDA’s “back to work” rule will affect the industry’s performance is not yet clear, experts say. USDA Secretary Sonny Perdue said that as plants reopen, shortfalls could still run as high as 15%. He cautioned that facilities may run below prior capacity for some time in order to comply with safety guidelines set by the Centers for Disease Control and Prevention. The federal order will prioritize protective gear and testing kits for meat workers – a key component to get plants back up and running. Tyson said Tuesday it was resuming limited production at its Pasco, Washington, beef facility. Smithfield Foods Inc. on Monday restarted a meat-processing plant in Wisconsin and the company announced late Wednesday that it will bring operations back at its South Dakota pork plant on Thursday. But many facilities still remain closed and those that are reopening could be forced to run lines at a slower pace because of social-distancing measures and absenteeism, Bloomberg said. Through Tuesday, processors slaughtered 35% fewer cattle than the same two days a year ago and 39% fewer hogs, according to USDA. Tyson Foods executives said Monday that there could be continued “short-term outages” in availability for some meat products at grocery stores. In addition, Wendy’s is reporting that beef menu items are in short supply at some locations. This led some press reports to conclude that the U.S. meat supply chain has been “broken quickly.” Among the press, there is frequent criticism regarding the sector’s heavy consolidation. For example, Tyson Foods and its top two rivals, JBS SA and Cargill Inc., now control about two-thirds of America’s beef. Pork and chicken are similarly dominated, Bloomberg says. This means that supply interruptions at major slaughter plants, although modest in number, have impacts all the way to the U.S. consumerâ??and have left some producers with little choice but to destroy thousands of animals. Politicians have been quick to take notice, and are proposing wide ranging new rules to investigate. Meanwhile, a bipartisan group of state attorneys general has asked the Justice Department to open an antitrust probe into meat packers over concerns about rigged beef prices. While the federal back to work order could help stem the tide of additional closures, “attracting workers to fill the thousands of vacant positions at meat plants across the U.S. is still an issue,” Will Sawyer, an animal-protein economist at Colorado-based CoBank, said in a report. “As communities reopen with only about one week of meat supply in cold storage, shortages and stock outs in the meat case couldn’t come at a worse time,” he said. “Food inflation and a weak U.S. economy is a combination that will leave many consumers in greater financial strain.” So, we will see. Clearly the many, many supply chain interruptions facing most commodities will take years to repair and will mean severe problems for producers and consumers alike, that process is still only beginning. These “fixes” will often involve far-reaching changes and should be watched closely as they proceed, Washington Insider believes.
| Rural Advocate News | Thursday May 7, 2020 |
US Ag Imports Rose in March, Producing Monthly Trade Deficit U.S. agriculture bucked the trend seen in the overall U.S. trade picture where both exports and imports fell in March. U.S. ag trade data shows that exports increased in March from February, but the rise in exports was eclipsed by a surge in imports, producing a monthly trade deficit of $502 million. U.S. ag exports in March were at $11.89 billion, up 5% from the $11.31 billion in February and the strongest U.S. shipment pace since November 2019. But the five-percent rise was swamped by imports surging to $12.39 billion, a rise of nearly 17% from the February import mark of $10.60 billion. USDA will be updating their forecast for U.S. ag trade in Fiscal Year (FY) 2020 on May 29, and changes in the outlook are expected based on trade data at the halfway point of FY 2020.
| Rural Advocate News | Thursday May 7, 2020 |
USDA Sends CFAP Rule To OMB USDA has sent the final rule for the Coronavirus Food Assistance Program (CFAP) to the Office of Management and Budget (OMB) for review. The rule was sent to OMB Tuesday May 5, sources signaled and OMB confirmed. The rule is labeled as being “economically significant” and there is no deadline listed for the targeted completion. Now attention will shift quickly to what is in the rule and whether the push by farm-state lawmakers and farm and commodity groups to adjust the pay caps USDA said will be part of the program. Indications are that OMB staff have been working with USDA on the rule so the review by the agency may not take as long as can be the case. Some USDA rules have been pending at OMB since March or April, with one even showing as having been at the agency since November 2019.
| Rural Advocate News | Thursday May 7, 2020 |
Thursday Watch List Markets Thursday morning starts with the usual lineup of weekly grain export sales, U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CDT, joined by a report of U.S. productivity for the first quarter. A report on U.S. natural gas inventory follows at 9:30 a.m. The latest slaughter reports, weather forecasts and any news on trade or coronavirus will also get traders' attention. Weather Light to locally moderate rain will cross the Midwest Thursday. The rain will interrupt field work while offering some useful moisture for winter wheat. A strong cooling trend is beginning; freeze warnings are noted in the northwestern Midwest for overnight Thursday into Friday.
| Rural Advocate News | Wednesday May 6, 2020 |
Ag Economy Barometer Reaches Three-year Low Commodity price declines, supply-chain disruptions, and coronavirus concerns pushed the Purdue University/CME Group Ag Economy Barometer down to a three-year low in April. The barometer recorded a reading of 96, marking the first time the barometer has fallen below 100 since October 2016, and was 72 points below its record high just two-months prior. The Ag Economy Barometer is based on responses from 400 U.S. agricultural producers and this month's survey was conducted from April 19-24, 2020. Producers' expectations for current and future agricultural economic conditions also declined sharply. The Index of Current Conditions suffered its largest one-month drop, down 39 points in April to a reading of 72, and the Index of Future Expectations fell 18 points to a reading of 108. In the April survey, two-thirds of respondents indicated they were "very worried" or "fairly worried about the impact of coronavirus on their farm's profitability. More than half said they anticipate applying for one of the federal government's COVID-19 related financial assistance programs. ************************************************************************************ Public-Private Partnership Serving 5 Million Meals a Week A feeding initiative in partnership with the Department of Agriculture will now serve nearly five million meals per week to rural children impacted by COVID-19-related school closures – five times its original goal. The partnership between USDA and Baylor University, along with McLane Global and PepsiCo, initially aimed to deliver nearly one million meals per week to students eligible for free and reduced-price meals in a limited number of rural schools closed due to COVID-19. However, the Meals To You initiative, “has been so successful and faced such high demand,” that USDA decided to expand the program, according to Agriculture Secretary Sonny Perdue. Meals to You boxes contain 20 nutritious meals, ten breakfasts and ten lunches, to cover the meals children would normally receive at school over two school weeks. Foods contained in the boxes meet USDA’s Summer Food Service Program meal standards and may include items like milk, fruit cups, cereal, whole-grain crackers, and chili. Boxes are delivered directly to children’s doorsteps. ************************************************************************************ USDA Announces Commodity Purchasing Plans The Department of Agriculture this week announced details of the $470 million in Section 32 food purchases to occur in the third quarter of fiscal year 2020 in addition to purchases previously announced. The purchases will provide additional support for producers and Americans in need, in response to changing market conditions caused by the COVID-19 national emergency. Agriculture Secretary Sonny Perdue says, "USDA is in the unique position to purchase these foods and deliver them to the hungry Americans who need it most." The Agricultural Marketing Service will purchase a variety of fruits, vegetables, meat, dairy and seafood products. The purchases include $30 million of chicken products, $120 million of dairy products and $30 million of pork. Additionally, USDA will purchase $50 million of potatoes, another $50 million of turkey products, and $30 million of catfish products, among others. Purchases are determined by industry requests, market analysis and food bank needs. AMS will begin issuing solicitations in June and intends to begin deliveries in July. ************************************************************************************ Lawmakers Concerned with Farm Animal Depopulation Methods A group of federal lawmakers wants the Department of Agriculture to curb depopulation efforts of farm animals. Led by Texas Democrat, Representative Lloyd Doggett, the lawmakers raised concerns about mass suffocation of animals who are being quickly cleared from facilities and urges use of more humane practices. Congressman Doggett says, "every effort should be made to get food to those in need instead of wasting it," adding that if depopulation is necessary, "USDA should act promptly to prevent the use of these most inhumane methods." The members reference data from the National Pork Producers Council that shows the industry could be forced to cull upwards of 700,000 pigs a week, while millions of birds raised for poultry have already been killed because of this same issue. The lawmakers detail the concerns with ventilator shutdown and water-based foam methods. When equipment fails, they say the process is inhumane, distressing, and painful for the animals "who can take many hours to die." ************************************************************************************ Pesticide Control Group Seeks Post Emerge Dicamba Ban A pesticide control group wants the Environmental Protection Agency to ban post-emergence use of dicamba on soybeans. The Association of American Pesticide Control Officials last month sent a letter EPA Administrator Andrew Wheeler detailing the request. Given the impending decision on the conditional registration of Xtendimax with VaporGrip Technology, the group says labels should prohibit over the top, post-emergent soybean use, and label registrations should be conditional on a year by year basis. Based on application dates of dicamba complaints investigated by the major soybean-producing states in 2017 through 2019, prohibiting over the top applications could greatly reduce dicamba complaint investigations, according to the group. The Association of American Pesticide Control Officials was formed in 1947, the same year that Congress enacted the Federal Insecticide, Fungicide, and Rodenticide Act. The organization is a professional association comprised of the officers charged by law with the execution of the state, territorial, provincial, and federal pesticide laws in the United States and Canada. ************************************************************************************ Farm Progress Show, Husker Harvest Days, Moving Forward Operations for the 2020 Farm Progress Show and Husker Harvest Days are underway for the events to be held in September, according to Farm Progress. Preparations include the completion of planting the corn acres used for field demos at each show location. The 2020 Farm Progress Show is planned for September 1-3, in Boone, Iowa. Meanwhile, 2020 Husker Harvest Days is planned for September 15-17, in Grand Island, Nebraska. Don Tourte of Farm Progress says the usual plans are moving forward for both shows, adding, "it's important now, more than ever before, for us to come together at these industry-leading events." The events hold significant economic and social roles for farmers and the ag industry. In preparation for live events returning this fall, the Farm Progress parent company, Informa, is partnering with numerous organizations within and outside of the tradeshow industry to plan and execute the events in an environment that is safe and conducive to conducting business.
| Rural Advocate News | Wednesday May 6, 2020 |
Washington Insider: Revenue Sharing to Help State and Local Governments The Hill is carrying an opinion piece this week that argues that the next big battle on Capitol Hill likely will concern aid to states and localities. The comment was written by former Rep. John Faso, D-N.Y., who represented that state’s 19th congressional district from 2017-2019. Faso argues that the $1 trillion plan being proposed by House Speaker Nancy Pelosi, D-Calif., will turn out to be a non-starter for the Republicans leadership and that linkage between “any new aid package” and liability protections from COVID-related lawsuits for employers who have acted responsibly” could be in the works. He notes that the administration has sent mixed messages on the topic but is likely to support some form of state and local aid. Faso also argues that states and localities perform critical public functions for education, law enforcement and infrastructure--and also partner with the federal government in the Medicaid program, providing health care to the poor and the elderly. And, he observes that the shutdown of the national economy has triggered mass unemployment, business stoppages and closure of schools. In addition, it has also meant significant declines in revenue for state and local governments. The National Association of State Budget Officers estimates that states have suffered revenue declines of at least 20%, he says. He cites an analysis by Moody's Analytics that found that only five states have enough reserves to absorb the revenue losses caused by the shutdown. In fact, state income and sales tax collections are dropping precipitously, he says, which is why many governors are pushing hard to reopen their state economies gradually. In that connection, he thinks that there is “no doubt that some form of federal assistance is in the offing. The question is, what is the most equitable form of aid and how should the program be designed?” He is suggesting that the General Revenue Sharing program should be considered for re-use. It was used between 1972 and 1986 to distribute funds to states and localities based on a formula that considered population, tax effort and per capita income, he says, Part of President Richard Nixon's "New Federalism," the program provided unrestricted aid with few strings attached, but that plan was complicated due to the need to also provide funds to thousands of local governments. A more efficient way to address state revenue loss would be to allocate aid based upon the proportion of total federal income taxes paid by residents of each state. This information is readily available from the IRS, Faso says. “Data anomalies” connected to the 2017 tax reform legislation and the timing of tax payments in 2017-18 suggest that data from 2016 provides a “better base” from which to determine state-level calculations. Faso concludes that basing allocations on federal income taxes paid is a simple, straightforward way to determine reasonable shares for each state. Unlike the earlier revenue sharing program, the Faso proposal would hold states responsible for directing a portion of their assistance to localities and school districts. Each state has existing mechanisms to assist local governments and school districts and Congress would be foolish to attempt to reinvent that wheel, he thinks. Such a task, and the political responsibility it implies, should be left to governors and state legislatures as part of their existing budgeting process. A $200 billion program of state-local assistance would provide significant aid to support critical state and local government programs, including education. Such assistance, while not covering all state revenue shortfalls, would cushion the financial shock caused by the economic shutdown. The state hardest hit by the crisis, New York, has experienced an estimated revenue loss of $15 billion, with billions more lost to localities. New York State taxpayers pay approximately 8.7% of federal income taxes and would receive $17.4 billion if $200 billion were allocated nationally. If the legislation provided that a minimum of 40% of such aid be allocated to local entities, New York localities and school districts would receive at least $6.9 billion from the state. Under this plan, for instance, Illinois would receive $8.8 billion, Kentucky $1.68 billion, Texas $15.4 billion and Florida $12 billion. Regardless of whether states rely upon income, sales and other levies, significant revenue declines are occurring. Just as Washington has acted to shore up hospitals and small businesses, it will become necessary to help remedy state and local finances. No allocation formula is perfect but using income taxes paid by residents of each state is a fair and efficient method of allocating emergency financial assistance. So, we will see. The problem is extremely complex, made more so by the increasingly toxic politics of this election season. And, certainly any broad revenue sharing can be expected to be bitterly contested in some quarters, in part because of the enormous amounts of spending involved. This is an important fight and one producers should watch closely as it emerges, Washington Insider believes.
| Rural Advocate News | Wednesday May 6, 2020 |
SBA Reopened EIDL Portal For Ag Producers Only The Small Business Administration has reopened processing of new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses. Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries. SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application. “At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received,” SBA said. For agricultural producers that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying.
| Rural Advocate News | Wednesday May 6, 2020 |
USDA Announces Section 32 Food Purchase Effort USDA Agricultural Marketing Service (AMS) will seek to purchase $470 million via Section 32 in food products in the third quarter of Fiscal Year (FY) 2020 beyond purchases efforts that have already been announced. The food purchased will be distributed to communities nationwide, USDA said. USDA based the expected purchase levels based on industry requests, market analysis and food bank needs. AMS will begin issuing solicitations in June and intends to begin deliveries in July. Among the products to be purchased, AMS said they would include dairy products ($120 million), potatoes ($50 million), turkey products ($50 million), pork ($30 million), chicken ($30 million), catfish products ($30 million), orange juice ($25 million), tart cherries ($20 million) and more. “Industry requests for future purchases using Section 32 funds, including potential plans for the fourth quarter of fiscal year 2020, will be assessed on an ongoing basis,” AMS said.
| Rural Advocate News | Wednesday May 6, 2020 |
Wednesday Watch List Markets ADP will have an estimate of private job losses for April at 7:15 a.m. CDT. The U.S. Energy Department's weekly inventory report will get traders' attention and show an update of gasoline demand and ethanol production. The other usual suspects of weather, trade and news about coronavirus or meat plants will also be watched. Weather Dry conditions will be in place across the central U.S. Wednesday. We'll see some light rain in southern Texas and light to moderate rain in the interior Northwest. Colder conditions with frost potential remain in the five-day forecast for northern and central areas.
| Rural Advocate News | Tuesday May 5, 2020 |
SBA Opens EIDL to Agriculture The Small Business Administration Monday announced eligibility for agricultural business in the SBA’s Economic Injury Disaster Loans and EIDL Advance programs. SBA’s EIDL portal has been closed since April 15. However, the Agency reopened the portal in a limited capacity this week. SBA is reopening the Loan and Advance application portal to agricultural enterprises only. SBA will move forward and process the applications without the need for re-applying for producers that submitted a loan application through the portal before the legislative change in funding. Agriculture Secretary Sonny Perdue says the move "will make a tremendous difference for America's agricultural community." Agricultural businesses include businesses engaged in the legal production of food and fiber, ranching, and raising livestock, aquaculture, and other farming and agricultural-related industries. Applicants must have 500 or fewer employees. For more information, visit www.sba.gov/Disaster. ************************************************************************************ USDA Announces $100 million for American Biofuels Infrastructure The Department of Agriculture Monday announced $100 million in competitive grants for activities designed to expand the availability and sale of renewable fuels. The Higher Blends Infrastructure Incentive Program offers funding for competitive grants or sales incentives to eligible entities for activities designed to expand the sales and use of ethanol and biodiesel fuels. Funds will be made directly available to assist transportation fueling and biodiesel distribution facilities with converting to higher ethanol and biodiesel blends by sharing the costs related to and offering sales incentives for the installation of fuel pumps, related equipment, and infrastructure. Agriculture Secretary Perdue says the grants to expand biofuels availability “will help increase their use during our economic resurgence,” following the impacts of decreased demand during the COVID-19 pandemic. USDA plans to make available approximately $86 million for implementation activities related to higher blends of fuel ethanol, and approximately $14 million for implementation activities related to higher blends of biodiesel. ************************************************************************************ Baldwin: Order on Meat Processors Puts Food Chain at Risk U.S. Senator Tammy Baldwin is urging President Trump to take immediate action to amend his Executive Order on meat processing facilities. Baldwin says facilities should be permitted to reopen only after they have met all the health and safety guidelines issued by the Occupational Safety and Health Administration and the Centers for Disease Control and Prevention. President Trump recently used the Defense Production Act to compel meat processing facilities to remain open despite poor safety and health standards at those facilities, which have led to documented COVID-19 infections and worker fatalities, according to Baldwin. In a letter with Senate colleges, Baldwin and others say, “Failure to take action to protect these workers is not only a threat to their lives, but also to the public health of their communities,” the Senators demanded the Trump administration do more to protect these workers, the public health of their communities, farmers and livestock producers, and the nation’s food supply chain. ************************************************************************************ Lawmakers Seek Quick Investigation of Beef Industry A bipartisan group of U.S. Representatives urges the Department of Agriculture to provide findings of its beef pricing investigation as soon as possible. Following the announcement of the USDA's Packers and Stockyard Division investigation in August of 2019. Secretary Sonny Perdue extended USDA's investigation last month to determine the causes of divergence between live beef and box prices during the COVID-19 pandemic. Beginning in the first few weeks of the coronavirus crisis, cattlemen saw prices drastically decline, with cattle futures falling 29 percent between January and April, while beef prices increased in stores. The lawmakers, including Oklahoma Republican Frank Lucas, say, “When market participants begin to believe that markets are not competitive or transparent, that suspicion has a dangerous industry-wide ripple effect." The lawmakers say producers want effective, market-based risk management tools. However, volatility during the pandemic has made market participation difficult to manage and capital intensive. Lucas added, "As a policymaker and a lifelong cattleman, restoring faith in our markets is my top priority.” ************************************************************************************ U.S.-U.K. Trade Talks This Week Trade talks get underway virtually this week between the United States and the United Kingdom. The talks come more than 18 months after U.S. Trade Representative Robert Lighthizer notified Congress of the intent to begin talks with the United Kingdom. A video conference Tuesday will start the talks. In March, the U.K. published its objectives for trade negotiations with the United States. The announcement included an uncompromising stand on agriculture and food standards, two big sticking points that have slowed momentum for talks getting underway. U.S. agriculture and trade officials had hoped that the U.K. would loosen up some of their strictest requirements after officially leaving the European Union in January. However, Lighthizer says the two biggest sticking points, which are agriculture and health care, shouldn’t stand in the way of reaching a deal in 2020. Politico reports It’s unclear how quickly the two sides can reach an agreement, since the U.K. first needs to decide many issues regarding its future relationship with the European Union. ************************************************************************************ National Average Gas Prices Increases Average gas prices rose for the first time in ten weeks, while diesel fell nationwide in the last week. GasBuddy reports the national average price of gasoline has moved higher, rising 1.5 cents over the last week to $1.75 per gallon. The average price of diesel, meanwhile, fell 2.5 cents to $2.43 per gallon. Patrick DeHaan of GasBuddy says, “a disconnect between low oil prices and rising gasoline prices has emerged at the hands of refineries that have slowed production.” Crude oil prices have rallied significantly in the last week as OPEC's production cut took effect May 1, and as U.S. demand shows the first signs of a long road to recovery. Data from the Energy Information Administration last week printed a gain of nine million barrels in U.S. oil inventories, ten percent above the five-year average for this time of year. Gasoline inventories, however, posted a drop of nearly four million barrels, signaling that refinery run cuts have fulfilled their purpose of curbing a glut of gasoline.
| Rural Advocate News | Tuesday May 5, 2020 |
Washington Insider: Fulfilling the US, China Trade Deal Bloomberg is reporting this week that the trade agreement President Trump signed with China less than four months ago “has gone from a cornerstone of his re-election bid to a potential political liability” as the pandemic increasingly sours U.S.-China relations. The pact, which took effect in mid-February, appears to be falling short on a number of fronts, including Beijing’s promises of large agriculture and energy purchases. The administration is seen as “hesitant to ramp up the pressure or back away from the deal altogether, even as the rhetoric on both sides heats up.” On Sunday night, the president raised concerns of a resumption of economic hostilities with China, calling tariffs “the ultimate punishment” for its response to the pandemic and threatening to withdraw from the trade deal if Beijing’s purchase pledges come up short. As the U.S. economy craters, the president could find himself boxed in on China,” Bloomberg thinks. If he responds too forcefully amid a growing public outcry to punish China he risks hurting consumers and businesses already facing the deepest recession since the 1930s. “The trade war was launched in good economic times,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies. “Reimposing or expanding tariffs now with U.S. unemployment at over 20% would be far harder to justify economically or defend politically.” At the same time, campaign advisers to former Vice President Biden are trying to exploit what they see as a weakness in the administration’s approach. In a recent TV ad, the Biden campaign accused the president of “rolling over” for the Chinese by taking their word that the virus was contained. Biden advisers argue that the catastrophe could have been better contained if the administration had been tougher on China instead of praising the trade deal. The president argued on Sunday that he was tougher on China than past administrations and achieved an “incredible trade deal.” The political pressure to do something, however, is mounting within his own party as he denied reports last week that his administration is planning to cancel part of the U.S. debt obligations to China. He claimed that he “had many other ways to punish the country.” On Sunday, he called tariffs the “greatest negotiating tool” but didn’t directly answer a question on whether he’d use them now against China for the country’s failure to limit the spread of the virus. Over the past two years, the administration placed duties on roughly $360 billion in Chinese goods and China retaliated by hitting more than half of America’s exports. The agreement signed Jan. 15 imposed a cease fire in that trade war and was supposed to usher in a new era of commercial partnership. Now, that warmth has faded as the countries feud over who’s to blame for a U.S. public-health crisis and an economy in a steep decline. With the Republican caucus calling for China to pay a price, the president “could be convinced to take action before the election,” Bloomberg thinks. “American voters and in particular his political base, want accountability,” said Jason Miller, a senior adviser to the 2016 campaign. Whichever route the president takes, continuing to praise what he lauded as “the biggest deal anybody has ever seen” could backfire. Two-thirds of Americans now have a negative opinion of the country where the virus originated, a recent Pew Research Center poll found. Seventy-two percent of Republicans see China unfavorably compared with 62% of Democrats. The president’s messaging on China’s handling of the virus has recently become more aggressive though he’s been careful to distinguish his displeasure with the country from harsh comments about President Xi. The current Bloomberg report focuses more on energy than on total trade. China committed to spend $52.4 billion buying U.S. energy over two years. The American Exploration and Production Council said last month that China had purchased “a de minimis amount of U.S. crude in the first months of 2020 while it has increased purchases of crude oil from Saudi Arabia and Russia.” A senior U.S. Trade Representative official acknowledged last week that there have been hiccups related to purchases and that the administration been discussing ways to make sure the country stays on track with its commitments. At the end of last month, Bloomberg reported that China is studying ways to accelerate purchases of U.S. farm goods to meet its Phase One trade deal commitments after the coronavirus delayed some imports. The expectation was that China might buy some ag commodities to build reserves. The Trump campaign has long accused former Vice President Biden of being too soft on China. The anti-China message resonates more with voters, especially in battleground states like Wisconsin. So, we will see. The phase-one trade deal is expected to be a prominent issue throughout the fall. “We think this will resonate across the country,” a Biden adviser told Bloomberg. Pressure to fulfill trade promises is likely to be a continuing issue as the administration works to ensure that the Chinese promises are fulfilled. Producers should to watch such efforts closely as they proceed, Washington Insider believes.
| Rural Advocate News | Tuesday May 5, 2020 |
Groups Argue Against Reconsideration of 2020 Biofuel Targets The American Petroleum Institute (API) petition for EPA to reconsider the 2020 biofuel and 2021 biodiesel standards in the wake of the COVID-19 situation is being opposed by several U.S. farm and commodity organizations. API based their petition on the 10th Circuit Court ruling that three small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) for the 2016 compliance year were invalid, arguing that EPA should now reopen the 2020 biofuel standards given that those standards included an accounting for SREs aimed at effectively increasing the level of biofuel used. “There is no basis for revisiting or modifying EPA's current approach until EPA acknowledges that the central tenets of the Tenth Circuit's decision are appropriately applied throughout the country,” the groups said in a letter to EPA Administrator Andrew Wheeler. “Applying the Tenth Circuit decision nationally while leaving the 2020 RFS Rule intact would begin to restore a small amount of the renewable fuel volume requirements lost to past small refinery exemptions.” The groups also questioned whether API qualifies to seek a reconsideration of the 2020 biofuel and 2021 biodiesel standards. Plus, the groups argued reconsidering the standards would be counter to the EPA stance of not going back to revisit the RFS levels once they have been finalized. “We agree with API that the Tenth Circuit decision warrants immediate national application, but since reconsideration of the 2020 RFS Rule is neither practical nor legally defensible, we encourage EPA to confirm the wisdom of that conclusion in its upcoming proposal to set annual standards for 2021,” the groups said. The Renewable Fuels Association, National Corn Growers Association, National Farmers Union and American Coalition for Ethanol signed the letter.
| Rural Advocate News | Tuesday May 5, 2020 |
Still Waiting for CFAP Details As of late-Monday, USDA had still not sent the rule for implementing the Coronavirus Food Assistance Program (CFAP) to the Office of Management and Budget (OMB) for review. USDA has been under intense pressure to change what it initially said would be in the program, with much attention focused on the pay caps of $125,000 per crop and a total limit of $250,000 per person or entity. Scores of lawmakers have written USDA, pressing them on several details, but the most unified criticism of what USDA said would be in the plan is on the pay cap. USDA has been aiming to start signup soon so that funds can be sent to farmers yet this month.
| Rural Advocate News | Tuesday May 5, 2020 |
Tuesday Watch List Markets Traders are expecting to see a big jump in row crop planting progress in Monday's Crop Progress report and will have to wait until 3 p.m. CDT. The latest weather forecasts, news on coronavirus and meat processing plants will also draw attention. Weekly grain export inspections are due out at 10 a.m. CDT. Weather Moderate to locally heavy rain will cross the Northern Plains to the far western Midwest Monday. Other crop areas will be dry. Areas with rain will have useful moisture for recently planted corn and soybeans. Meanwhile, Midwest areas will have improved conditions for planting. Drier wheat areas of the southwestern Plains have no more than light rain indicated. We'll also see additional record heat and dryness in central and western Texas, unfavorable for planting cotton.
| Rural Advocate News | Monday May 4, 2020 |
Coalition Opposes API Petitions on RFS Obligations The American Petroleum Institute recently filed a petition with the Environmental Protection Agency requesting a reconsideration of the 2020 Renewable Fuel Standard final rule. A coalition of ethanol and farm groups sent a letter to the EPA last week in opposition to the petition. API claims the EPA needs to reconsider the rule because of the coalition’s recent Tenth Circuit Court victory that overturned the small refinery exemptions illegally granted by the EPA. API also argues in its petition that the 2020 RFS rule should be revised to eliminate measures that prospectively “reallocate” RFS blending obligations expected to be lost to refinery waivers. The Petroleum Institute says the reallocation of expected waivers is no longer needed because the Tenth Circuit Court decision should significantly curtail the number of waivers granted. However, EPA hasn’t confirmed that it will implement the tenets of the court decision nationwide, meaning reconsideration of the 2020 RFS rule would be very premature. “There is no basis for revisiting or modifying EPA’s current approach until EPA acknowledges that the central tenets of the Tenth Circuit Court’s decision are appropriately applied across the country,” the groups say in their letter. ********************************************************************************************** RMA Makes Changes to Forage Seeding, Forage Production Crop Insurance USDA’s Risk Management Agency made some changes to the Forage Seeding and Forage Production crop insurance programs that will start during the 2021 crop year. The changes will include expanding coverage to new regions and counties, expanding coverage to fall-planted forage, as well as changing the method for loss adjustment. “These changes will expand coverage to new places, better reflect current agricultural practices, and better protect forage producers from losses,” says RMA Administrator Martin Barbre. “This will also enable forage producers to better secure loans and provide continuity to their forage production operations.” The specific changes include establishing coverage of forage seeding for producers in an additional 186 counties. Coverage is expanded to fall-planted forage and aligns forage seeding cancellation and termination dates with the dates of other fall-planted crops in each state. RMA will revise loss-adjustment procedures to rely upon the number of live alfalfa stems rather than the number of live plants for making loss determinations for forage containing more than 60 percent alfalfa. Changes are listed in a final rule on the Federal Register at regulations.gov. Interested people are invited to comment on the rule for 60 days. ********************************************************************************************** Small Farmer Debt Relief Act Introduced in House Democratic Representatives from New York, Maine, Vermont, and New Jersey introduced the Relief for America’s Small Farmers Act. The legislation would provide one-time debt forgiveness of up to $250,000 for farmers who hold existing loan obligations with the USDA. The Hagstrom Report says the bill would apply that one-time debt forgiveness to three types of USDA loans, including direct-farm operating loans, direct farm ownership loans, as well as emergency loans. Farmers with an average adjusted gross income of $300,000 a year or less over the previous five years would be eligible for the debt relief. The legislation will offer a one-year window for farmers to apply for the relief. Farmers would have to commit to being actively engaged in farming for at least two years after receiving loan forgiveness. The bill has widespread support from a wide spectrum of organizations, including the National Family Farm Coalition, National Young Farmers Coalition, Farm Aid, Family Farm Action, Rural Coalition, Rural Advancement Foundation International, as well as the Institute for Agriculture and Trade Policy and the Campaign for Family Farms and the Environment. ********************************************************************************************** Early Registration Open for NCGA National Corn Yield Contest The National Corn Yield Contest is officially underway, and the National Corn Growers Association is encouraging potential entrants to register early and save on entry fees. Fees are reduced to $75 until June 30. NCGA points out that a small-time investment now will save some money later in the summer. The contest has been one of the premier events of every corn-growing season since 1965, with the contest offering challenges and rewards to each of the entrants. In 2019, 7,454 growers accepted the challenge of testing their corn production skills and knowledge by competing with proven winners to reach the ultimate goal of being named champion. NCGA invites American farmers to take advantage of the opportunity to explore new ideas and production techniques while gaining knowledge to enhance future yield potential. Winners will get national recognition in various publications like the NCYC Corn Yield Guide, as well as other rewards from participating sponsors from seed, crop, and chemical companies. State winners will be honored during the NCYC Breakfast at Commodity Classic in San Antonio, Texas. Visit the National Corn Growers website for more information. ********************************************************************************************** American Farmland Trust Helping Farmers Who Sell Directly to Consumers American Farmland Trust’s Farmer Relief Fund started sending out $1,000 grant checks to 1,000 farmers across the country as America sees unprecedented disruptions to the food system. The funds are going to help small to mid-size producers that sell directly to consumers, foodservice businesses, or institutions. All of the funds from the AFT are being given to farmers directly and with no restrictions on how to use them, only that they use the money to support modifications to their business model that will get them through until normal markets return. Direct-to-consumer farmers have been severely impacted by “social distancing” policies and closures that have kept them from selling to their usual customers and necessitated they make dramatic shifts in the way they do business to stay afloat. “We’re helping in a small way where the need is huge,” says American Farm Trust President and CEO John Piotti (Pee-AHT-tee). “We believe the farmers who sell directly to consumers were the most immediately impacted when the pandemic set in.” He says farmers who sell directly to consumers were also hurt because there is no federal safety net in place to help them during tough times.
| Rural Advocate News | Monday May 4, 2020 |
Washington Insider: Coronavirus Restructuring One of the persistent concerns of economic observers focuses on shifts in the structure of the economy in response to large economic trends. For example, Bloomberg says that the biggest companies are getting even bigger these days and “midsize players are running on fumes.” The report focuses on efforts by the Justice Department, Federal Trade Commission, and state attorneys general that have been investigating Alphabet Inc.’s Google and Facebook Inc. for possible antitrust infractions. And, the antitrust officials see those inquiries continuing “as they shifted to working remotely” while the economy reopens. The pandemic is playing to the strengths of the biggest digital players, Bloomberg says, as seen in their earnings results for the quarter ending in March. Amazon.com Inc. has gone on a hiring spree to keep up with a surge in demand from millions of homebound consumers. In what is normally a slow quarter, sales jumped 26% to a record $75.5 billion, though earnings fell 29% compared with the same period in 2019. In addition, Alphabet’s revenue exceeded expectations as Facebook’s shares soared on Thursday after its results eased some investor concerns about advertising weakness. Investors were braced for one of the biggest annual sales declines in Apple Inc.’s history but the company reported a surprising 1% revenue increase to $58.3 billion, while retailers, restaurants, airlines and hotels are struggling and more than 30 million Americans have suddenly become jobless. Dominant companies were already on the march across industries, from the internet to wireless carriers and from health care to food processing, long before the virus hit. Now, antitrust experts fear that as the largest companies increase market shares, weaker firms might disappear or sell out at fire-sale prices to stronger rivals – and that regulators and lawmakers will be under pressure not to stand in the way. During the 2008 financial crisis, a wave of bank mergers increased concentration and could offer a template for what’s to come. The report says policy makers encouraged the strong to gobble up the weak, at that time. By 2012, five banks -- JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Wells Fargo & Co., and Goldman Sachs Group Inc. -- were about twice as large as they had been a decade earlier relative to the U.S. economy. This time, embattled retail, restaurant, entertainment and travel industries could follow suit, Bloomberg says and notes several structural discussions now underway. New York University economist Thomas Philippon, whose book, “The Great Reversal,” documented how U.S. markets have become less competitive said big companies gained access to Federal Reserve lending facilities in the $2 trillion coronavirus stimulus package. Meanwhile, millions of small firms were left with a poorly designed Small Business Administration loan program that’s been swamped by demand, including from larger companies with the ability to tap stock and bond markets. Some are already closing. For example, Service, a travel app, folded after an investment deal and a backup plan to sell to Enterprise Holdings Inc. fell through, said Michael Schneider, the chief executive officer. He had to inform his nine employees in Los Angeles that they were out of a job. “It feels like the end of the world,” he said. Supply-chain bottlenecks in the meat industry already have led President Donald Trump to invoke the Defense Production Act to keep food supplies flowing. Tyson and its top rivals JBS SA and Cargill Inc. control about two-thirds of America’s beef production, the bulk of which is done in a few dozen giant plants. “This is 100% a symptom of consolidation,” said Christopher Leonard, author of “The Meat Racket,” which examines the protein industry. “The virus is exposing the profound fragility that comes with this kind of consolidation.” The pandemic could reshape the American economy in myriad ways, as companies begin to teeter and corporate defaults are projected to soar, Bloomberg says. Even as the pandemic grinds deal-making to a halt, famed investors in struggling companies like Howard Marks’s Oaktree Capital Group are getting ready to pounce. Mastercard Inc. Chief Executive Officer Ajay Bangatold told investors on an April 29 conference call that the company is “keeping the powder dry” for acquisitions. Fear of a consolidation wave has led Rep. David Cicilline, D-R.I., who chairs the House antitrust panel, to call for a moratorium on acquisitions. Two other Democrats, Sen. Elizabeth Warren of Massachusetts and Rep. Alexandria Ocasio-Cortez of New York, are proposing legislation to ban corporate mergers while the pandemic persists. As the pandemic accelerates, concerns are growing among “antitrust overseers” that Amazon’s grip on U.S. online retail sales could permanently shift consumer behavior toward online shopping. On Friday, Jerrold Nadler, the House Judiciary Committee chairman called Amazon Chief Executive Officer Jeff Bezos to testify about his company’s treatment of third-party merchants on Amazon’s website. So, we will see. The primary concern likely will be to get the economy reopened, as it was in the earlier case. Still, worries about smaller competitors seems stronger now – and to extend at least modestly across the political aisle, although holding back consolidation will be very tough. Such efforts should be watched closely as the fight against the virus continues, Washington Insider believes.
| Rural Advocate News | Monday May 4, 2020 |
USDA’s Perdue Sees Meat Plants Reopening in ‘Days, Not Weeks’ U.S. meat plants are expected to be resuming operations in “days, not weeks,” USDA Secretary Sonny Perdue told Bloomberg in an interview, noting that personal protection gear and access to COVID-19 testing should happen “virtually immediately.” USDA has already started working on orders to get them filled on a priority basis with suppliers. The downturn in meat production should ease to “10% to 15% within a week to 10 days,” he noted, putting the current shortfall at 20% to 30%. “There will be some less production, some inefficiency based on line speeds, some employees that will not be able to come back to work,” Perdue said, but emphasized that worker safety “is the first priority here.”
| Rural Advocate News | Monday May 4, 2020 |
USDA’s Perdue Again Offers Help for Ethanol Industry Exports of U.S. ethanol are being eyed as a way to help the sector, but USDA Secretary Sonny Perdue Thursday did not mention the potential for the industry to get any government aid. Perdue said ethanol was a product that China could purchase as it seeks to meet terms of the Phase One agreement with the U.S. He also offered no indication that USDA is altering its aid package for farmers that it has yet to release. Meanwhile, a bipartisan group of Senators are pushing USDA to target its relief to local farmers under the Coronavirus Food Assistance Program (CFAP). They expressed disappointment that there were “no specific details on how this assistance will be tailored to the unique challenges that local producers face, or how the Department will conduct outreach to beginning and underserved farmers.”
| Rural Advocate News | Monday May 4, 2020 |
Monday Watch List Markets Traders are expecting to see a big jump in row crop planting progress in Monday's Crop Progress report and will have to wait until 3 p.m. CDT. The latest weather forecasts, news on coronavirus and meat processing plants will also draw attention. Weekly grain export inspections are due out at 10 a.m. CDT. Weather Moderate to locally heavy rain will cross the Northern Plains to the far western Midwest Monday. Other crop areas will be dry. Areas with rain will have useful moisture for recently planted corn and soybeans. Meanwhile, Midwest areas will have improved conditions for planting. Drier wheat areas of the southwestern Plains have no more than light rain indicated. We'll also see additional record heat and dryness in central and western Texas, unfavorable for planting cotton.
| Rural Advocate News | Friday May 1, 2020 |
Peterson Will Draft Emergency Plan for Agriculture The Minnesota Democrat who chairs the House Ag Committee says he will “personally see to it” that the ag industry doesn’t suffer from a national emergency like COVID-19 again. “I can tell you as chairman of the ag committee that this is not going to happen again on my watch,” Peterson said during a press conference in Worthington, Minnesota. The press conference dealt with how pork producers are being hurt by the pandemic. Peterson has formed a local task force to help pork producers deal with a massive backup of hogs caused by recent closures of meat processing plants. Before President Trump issued an executive order to keep the plants open, Peterson had struck a deal with a shuttered JBS plant in Minnesota to have its workers ease the burden by euthanizing up to 13,000 hogs daily. With fewer places to send animals ready for slaughter, farmers are having to euthanize the animals themselves, which Peterson says is a nearly impossible task. Peterson also said Ag Secretary Sonny Perdue floated the idea of having the federal government cover the costs of depopulating hogs if the backlog remains a problem. ********************************************************************************************** MN Dairy Group: Farmers Need Cash, Not Government-Inflated Prices The Minnesota Milk Producers Association introduced its Dairy CORE Program, which stands for Coronavirus Recovery. They say the program will get right to the heart of the industry’s biggest challenge, which is dairy farmers need cash to continue their operations. Some members of the dairy industry recently proposed to temporarily alter the Federal Milk Marketing Order System. The Minnesota farmers point out that everyone in the industry wants higher milk prices, but arbitrarily bumping prices to a made-up number could cause more harm than good. The people who buy milk at the processing plant, as well as at the store, may decide they no longer need to buy it. They also point out that while raising the Class 1 milk price would benefit dairies with Class 1 milk, the farms without milk in the Class 1 category would get left behind. Important parts of their CORE Program include distributing Coronavirus Food Assistance Program payments as quickly as possible. They want the Federal Milk Marketing Orders to stay where they are. They’re also calling for raising or eliminating the cap on direct payments. They say the current payment caps are out of touch with the risk undertaken by even the smallest of dairy operations. ********************************************************************************************** USDA Pilot Program Offers Longer-Term Conservation Benefits The USDA will soon open signup for a new conservation program called CLEAR30. It’s a new pilot program that will allow farmers and landowners an opportunity to enroll in a 30-year Conservation Reserve Program contract. Signup will begin this summer, with farmers in the Great Lakes and Chesapeake Bay regions eligible to participate. “This pilot will allow us to work with farmers and landowners to maintain conservation practices for 30 years, which will only underscore farmers’ commitments to sound long-term conservation stewardship on their agricultural land,” says Farm Service Agency Administrator Richard Fordyce. “Through CLEAR30, we can decrease erosion, improve water quality, and increase wildlife habitat on a much longer-term basis.” The program will be available in Delaware, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Ohio, Pennsylvania, Virginia, West Virginia, and Wisconsin. Traditional CRP contracts run from 10 to 15 years. The longer contracts will ensure that practices remain in place for 30 years, which will help reduce sediment and nutrient runoff, as well as help to prevent algae blooms. The official signup period begins on July 6 and runs through August 21. ********************************************************************************************** ASA, USB Offering #SoyHelp to Overcome Farm Stress The American Soybean Association’s COVID-19 Task Force conducted a survey to find out the effects of COVID-19 on soy growers, their operations, employees, and families. It’s probably no surprise that stress in soy-producing states is high. ASA, their state soybean affiliates, and the United Soybean Board want to help. This May is Mental Health Month and ASA is launching a proactive communications campaign to combat #FarmStress and offer #SoyHelp. They say help comes in many forms and from many sources. ASA has researched a range of options that will be shared both nationally and by state soybean affiliates. “Stress levels have crept up out there in farm communities for some time now,” says Kevin Scott, a South Dakota farmer and chair of the task force. “Knowing how to talk about the issues and work to reduce stress are two different things.” The #SoyHelp campaign will include different levels of outreach. Producers will see #SoyHelp posts throughout May on Facebook and Twitter. They’ll offer a social media toolkit for each soybean state and USB to participate and share resources. The organization will have related stories in national and state newsletters, as well as editorials from soy growers on #FarmStress. They’ll also share expert advice on the subject of farm stress and ways to seek out emotional support. ********************************************************************************************** Minnesota Farmers Helping Others During COVID-19 Corn farmers around the country are doing what they can to help their local communities during COVID-19. Corn farmers in Minnesota are a good example. Chippewa (CHIP-eh-wah) County Corn and Soybean Growers donated pallets of bottled water to its local hospital and its workers who serve many of their county residents on the frontlines. Freeborn County Corn and Soybean Growers made a $3,000 donation to three of their area Food Shelves. The producers recognized the financial hardship that many families are under and wanted to help out their local Food Shelves, which are experiencing a much higher demand for their services. Murray County Corn and Soybean Growers worked with their local restaurants to organize a free lunch for essential workers, as well as people who support the county growers. The Minnesota Corn Growers Association also got involved by sponsoring an hour of a radio telethon in the Twin Cities to raise funds for Second Harvest Heartland, matching the amount of money raised through the hour, up to a predetermined amount. ********************************************************************************************** House Ag Committee Celebrates 200 Years It’s been 200 years since the House Agriculture Committee was established. Back on April 29, 1820, Congressman Lewis Williams of North Carolina introduced a House resolution to create a committee to oversee the agricultural sector of the economy. The full House approved the resolution to formally establish the Committee on May 3, 1820. Committee Chair Collin Peterson and Ranking Member Michael Conaway issued statements this week celebrating the anniversary. “For 200 years, the House Ag Committee has brought the issues facing farmers and ranchers and the rural communities they call home together with the needs of consumers in the city, to make sure Americans have the food, fuel, and fiber they need,” Peterson says. “We’ve never shied away from tough tasks before us, and we won’t start now.” He adds that Americans need a sound policy that makes sure food is available for everyone. “American agriculture has kept this nation fed and clothed through many difficult times in our history,” Conaway says. “Now more than ever, we are reminded of the important role the hardworking individuals in agriculture play in our daily lives, and it’s our duty to stand with them as members of the House Agriculture Committee.”
| Rural Advocate News | Friday May 1, 2020 |
Washington Insider: New Federal Rules for Meat Plants The New York Times is reporting this week that “since slaughterhouses became coronavirus hot spots, the meat industry has been asking the administration for help. On Tuesday, the president gave them what they were looking for, a broad declaration that the slaughtering and processing of beef, chicken and pork are “critical.” This means that federal agencies would now set the criteria for ensuring workers’ safety amid the pandemic, the Times said. The move came as hundreds of employees have been getting sick or not showing up for work for fear of contracting the virus. Labor unions had started to hold regular news conferences to highlight the growing number of deaths among their workers. And in some states, health departments were shutting down meatpacking plants. “This order tells them they need to stay open and they get cover,” said Howard Roth, the president of the National Pork Producers Council said on a conference call with meat executives, the president and Vice President Mike Pence. The executive order, which allows USDA to invoke the Defense Production Act, does not explicitly mandate that plants stay open--but it signals that the decisions around whether to close or reopen a plant should be driven by the feds, not local authorities. The action followed weeks of lobbying behind the scenes and in public by meat companies led by Tyson Foods, a $40 billion company, the Times said. After decades of consolidation, only a small group of slaughterhouses concentrated in the Midwest accounts for the bulk of the nation’s meat supply, NYT said. The group exerts heavy-duty leverage on both Republican and Democratic administrations as a major food supplier. Even so, the meat industry was helped over the weekend when another powerful constituency weighed in. Farmers, who fear that they will need to euthanize as many as 150,000 hogs per day if slaughterhouses remained closed, also pushed for federal intervention. The executive order could also shield companies from lawsuits by employees who fall ill while cutting meat — a key provision for an industry in which several plants have reopened after shutdowns caused by coronavirus outbreaks. Also, serious questions remain about whether social distancing and the regular use of face masks can stem a new contagion. Even before Trump’s action, meat companies had pushed back against local health orders. When the major meatpacking company, JBS USA in Greeley, Colo., was shut down this month, local health officials originally wanted the workers tested before it could reopen. But the plant opened back up on Friday without widespread testing, state and union officials said. JBS, threatened legal action against the local union, although five workers at the plant there have died of the virus. “They somehow think we don’t have a constitutional right to advocate for our workers,” said Kim Cordova, president of Local 7 of the United Food and Commercial Workers. A local Weld County spokesman said health officials had been in the plant in the days after it reopened to perform on-the-spot testing of any employee who showed possible symptoms. Neither the administration’s executive order nor recently released federal guidelines specify whether all meat workers should be tested before a plant can reopen, NYT said. One measure that many health experts and plant workers say would help prevent the virus from spreading again is to slow the production line. Such a move reduces the number of people needed to cut and debone the products and which would allow for more space between employees, NYT says. However, the companies have spent years lobbying to increase line speeds and have not signaled that they will slow them now. A federal rule adopted in September allows pork-processing lines to move at any speed with fewer inspectors overseeing production. This month, even as the pandemic was raging, USDA issued waivers allowing 15 poultry plants to increase line speeds to as fast as 175 birds per minute. “They prioritize line speed production,” said Debbie Berkowitz, a former high-ranking official at the Occupational Safety and Health Administration. “It’s shocking to me that the government gave this industry a pass over worker safety.” However, lines in many of the plants now operating are moving slower because fewer employees are showing up, the United Food and Commercial Workers said. But the union does not expect that the companies will agree to reduce their speeds permanently because that could threaten profits. Two major meat plants that closed in Pennsylvania have reopened with new measures that spread out workers. The UFCW said the changes were not enough and that there needed to be widespread testing of employees and more protective gear, including face shields. And, last week the union called on governors in several states to step in and enforce health guidelines in light of the administration’s executive order. At a Worthington, Minn., shuttered JBS plant, Minnesota’s Democratic governor, Tim Walz, said that getting the plants up and running hinges on protecting workers through testing and contact tracing, among other tools. He added, “No executive order is going to get those hogs processed if the people who know how to do it are sick.” So, we will see. The new policy likely will mean tough regulatory decisions for USDA but the criteria involved seem quite clear and the agency has long experience in safety enforcement. The new oversight will be challenging for the agency and should be watched closely by producers as the fight against the virus continues, Washington Insider believes.
| Rural Advocate News | Friday May 1, 2020 |
US Says China Sticking To Commitments in Phase One Deal China is still “very, very committed” to meeting the terms of the Phase One trade deal with the U.S. despite the impacts of the COVID-19 situation, according to a senior U.S. trade official. The two sides hold regular discussions, often daily, on implementation of the trade deal. Despite the challenges from the pandemic, the official said that China is sticking to its commitments. "We will continually assess its implementation of the Phase One agreement," said the official. "We have had very good interactions with Chinese (officials) on that, and they are continuing to implement their obligations." The official made the comments during a briefing on the annual USTR Special 301 report, in which it noted it was still assessing intellectual property (IP) changes that China committed to in the Phase One deal.
| Rural Advocate News | Friday May 1, 2020 |
Rep. Peterson Wants Pandemic Plans For CCC Getting a plan in place to use the Commodity Credit Corporation (CCC) authority at USDA to address a pandemic in the future like the COVID-19 situation is a key issue that House Ag Committee Chairman Collin Peterson, D., Minn., said he will pursue. “We are going to have to have a way to respond to emergencies that is off the shelf,” Peterson told reporters. He also said that CCC authorities need to be put in place to pay producers for animals they have to depopulate in emergency situations. “We have got to change the statute, we have got to put this in the CCC law,” Peterson said. He also noted that the executive order signed by President Donald Trump to invoke the Defense Production Act to keep meat plants operating should help get plants back on line. While some have raised concerns about provisions on liability and that the order lacked protections for workers, Peterson said he believes workers will be protected. “I think the biggest issue is making sure these workers in the plant are safe,” he added, saying he would not support any move that does not also ensure worker safety. Meanwhile, USDA Secretary Sonny Perdue has asked Peterson to form a working group to address the closing of pork plants and resulting euthanasia of hogs in Minnesota, Iowa and South Dakota. Peterson noted he spoke with Perdue for about 30 minutes Wednesday morning about the current state of the food system with a focus on packing plants.
| Rural Advocate News | Friday May 1, 2020 |
Friday Watch List Markets Friday, the first of May, is relatively quiet for official reports. ISM's index of U.S. manufacturing is due out at 9 a.m. CDT, followed by the Fats and Oils report from NASS at 2 p.m., a report of March soybean crush and soybean oil stocks. Market attention remains focused on the weather and any news about coronavirus, meat plant updates and export sales. Weather Friday will be dry across almost all primary crop areas, allowing for continued fieldwork and planting progress. The only exception will be light rain in the far Northern Plains. Meanwhile, record or near-record heat and dryness will stress crops in the southwestern Plains.
| Rural Advocate News | Thursday April 30, 2020 |
Agriculture Responds to Meatpacking Executive Order President Donald Trump’s executive order to open meatpacking plants helps ensure the food supply chain but poses risks to workers. A statement by the National Farmers Union says the organization shares the president's concerns around maintaining food system infrastructure. However, the organization is equally concerned with the health and wellbeing of meat plant employees. NFU President Rob Larew says, “These workers work in close quarters and often lack access to appropriate protective equipment or paid sick leave, making them among the most vulnerable to coronavirus.” However, ordering the facilities to stay open ensures that producers of meat have a market for their product. National Pork Producers Council President Howard AV Roth says, "We must safely stabilize the current plant capacity challenge." Pork and poultry producers face the tough decision to depopulate because there is no room for animals in the current supply chain. American Farm Bureau Federation President Zippy Duvall, in a statement, says he is "hopeful" the executive order will protect workers while ensuring the supply chain for farmers and ranchers. ************************************************************************************ Senators Seek Open Antitrust Investigation into Meatpackers Amid Plant Closures Two U.S. Senators seek an antitrust investigation into the meatpacking industry. Senators Tammy Baldwin, a Wisconsin Democrat, and Josh Hawley, a Missouri Republican, asked the Federal Trade Commission to open the antitrust investigation Wednesday. They say the industry is currently dominated by just a handful of large, multinational firms that have concentrated meat processing into fewer and fewer facilities, leaving America’s food supply chain vulnerable to disruptions. In the bipartisan letter, the Senators note that the closing of three pork plants because of COVID-19 has resulted in the shutdown of 15 percent of America’s pork production “at a time when stable supply chains have become more critical than ever.” The Senators say the FTC has the power to “shed light on these growing competition and security problems.” Baldwin and Hawley say the FTC should ask probing questions about major meatpacking firms’ conduct, pricing, and contracting, as well as how their commitments to overseas interests impact the U.S. market and national security. ************************************************************************************ Expanding Overseas Markets Key to Dairy Post-COVID-19 Expanding export markets oversees is key to helping the dairy industry recover after the COVID-19 pandemic. National Milk Producers Federation vice president for trade, Shawna Morris, says work continues on "what needs to happen over the next year or two" to help the industry recover. Despite the disruptions, Morris says trade officials need to keep long-range goals of open commerce essential to returning dairy to prosperity in mind. Morris says NMPF and others are working with the federal government and others to outline the dairy industry's priorities for upcoming trade agreements, notably with the UK and Kenya. Additionally, NMPF is focusing on issues and policy barriers that had existed before COVID-19 and are still in place and hindering dairy trade. With the drop in demand due to the COVID-19 pandemic, dairy farmers are forced to dump milk, and some experts have warned the industry needs to retract production by ten percent. However, strong export demand following the COVID-19 pandemic could help the industry quickly recover. ************************************************************************************ COVID-19 Impacting Ag Equipment Demand, Supply Chains More than half of U.S. equipment manufacturers believe the COVID-19 pandemic has had a very negative impact on the industry, according to a survey released by the Association of Equipment Manufacturers. In addition, eight out of ten executives say the federal government should prioritize a significant investment in the nation's infrastructure to help equipment manufacturers weather the crisis and help rebuild the economy. The survey was in the field from April 16 to 27, 2020. Seven out of ten surveyed experienced a moderately negative impact on their supply chain, while a quarter said the impact has been very negative. Four out of ten said they expect the outlook for the next 30 days to get worse and said they plan to lower their financial outlook for the same period by more than 30 percent. Finally, nine out of ten cited a decline in demand for equipment as the primary impact of the COVID-19 pandemic on their business. ************************************************************************************ Organic Outlook: Corn and Wheat Face Glut, Soy Demand Strong Larger-than-expected beginning stocks and more harvested acres have placed organic corn and wheat on a bearish trend over the 2019/20 market year, according to the new Mercaris (Meh-CAR-us) Organic Commodity Outlook. Meanwhile, strong demand and lower imports have provided support to organic soybeans markets. Mercaris, the nation's leading market data service and online trading platform for organic, non-GMO and certified agricultural commodities, this week released its spring outlook. Despite poor planting and harvest conditions in 2019, additional certified corn and wheat farms helped push harvests above previous estimates. In addition, corn imports rose sharply at the end of the 2018/19 market year, 12 percent above projections. For organic soybeans, a collapse in imports from China and a reduction from Canada and the Black Sea Region point to supply constraints and higher prices. Meanwhile, organic corn production is estimated at 39.7 million bushels for 2019/20, up nine percent from the previous outlook but still down four percent year-over-year. ************************************************************************************ Midwest Dairy Donated $500,000 to Food Banks Midwest Dairy this week announced a $500,000 donation to food banks in the Midwest to purchase dairy products for those in need. The contributions will be spread across the ten states Midwest Dairy represents to help meet the increased demand for dairy products during the COVID-19 pandemic. Food banks across the region have been seeing an unprecedented need in recent weeks, setting records of daily and weekly food distribution and showcasing the urgency of finding resourceful ways to provide more food to those experiencing food insecurity. With unemployment numbers still climbing and schools - where many children receive most of their daily meals - continuing to be closed, the demand is expected to continue growing. Though dairy checkoff funds cannot typically be used to purchase dairy products, the USDA has granted a one-time exception at the request of Midwest Dairy. The program also offers processors an opportunity to keep their supply chains active while navigating changes in demand.
| Rural Advocate News | Thursday April 30, 2020 |
Washington Insider: Tracer Army Mobilized In addition to financial support, the national anti-virus effort is mobilizing a large group, perhaps 300,000 workers, to trace past contacts of infected people, Bloomberg is reporting this week. The effort is seen as crucial for coast-to-coast reopening, though controversial. However, Bloomberg also notes that it is so far resulting in a “far smaller ragtag army that’s many weeks, if not months, from full deployment.” Bloomberg also comments that the tracing effort has uncertain purposes in many cases. For example, West Virginia wants tracers to go unpaid while Texas, which is advertising jobs at $17 to $22 an hour, calls the gig a “simple” matter of telling people to stay home. New York City is seeking 1,000 hires with public-health backgrounds. North Carolina, which is targeting unemployed people with high-school educations, received about 1,500 applications for 250 positions in just 24 hours. “That shows you that there are a lot of people out of work,” said Paul Mahoney, a spokesperson for the program’s coordinator, Community Care of North Carolina. Five weeks into the pandemic, a record 26 million Americans had filed for unemployment benefits, more than 875,000 in North Carolina. That wave of “desperation explains why Texas, Georgia and other states are stirring to life this week,” Bloomberg notes. Utah Gov. Gary Herbert said his state will reopen in a limited capacity Friday, including gyms, salons and dine-in restaurants so long as they “exercise extreme precautions.” Wyoming is doing likewise, while California’s Gov. Gavin Newsom is considering opening schools as early as July to make up for lost class time. The main reason for the needed “army” is the belief by experts that long-term stability won’t come without a way to quickly spot COVID-19 outbreaks and stop them. As a result, the US with its “flagging public-health system,” is asking trainees to press total strangers about details: Where have you been, for how long and who else was there? And their phone numbers, please? So, the “army” may include 300,000 tracers and specialists, according to Tom Frieden, a former US Centers for Disease Control and Prevention director and New York City health commissioner. “Early in the outbreak, many health departments began systematic contact tracing but rapidly were overwhelmed,” Frieden said. “Now that cases are coming down in some areas, we have to trace contacts in a simple, more scalable way.” In the meantime, House Oversight and Reform Chairwoman Carolyn Maloney, D-N.Y., said that officials from the Federal Emergency Management Agency and Department of Health and Human Services told lawmakers recently that states face shortages of testing supplies as well as personal protective equipment such as masks and medical gowns. This acknowledgment came in spite of President Donald Trump's recent comment that governors have sufficient testing equipment. He commented on Wednesday that “the only reason the U.S. has reported one million cases of coronavirus is that our testing is “so much better” than any other country in the World.” Still, Bloomberg points out that the virus crisis is thrusting governments on both sides of the Atlantic into a fiscal emergency along with the medical one. It reports that the EU and the US both are grappling with questions regarding how to assist their hardest-hit members without being dragged down by them. In Europe, indebted Italy is “in need” while in the US “it’s big states like New York and Illinois. “The geography and political systems may differ, but the problem is the same,” the report argues. Both economies boast central powers that want to avoid getting on the hook for the debts of the under-performers. Republicans in Washington grumble about taking on Illinois’ problems while Berlin fears Rome’s. In addition, there other unusual approaches to virus-related problems being undertaken. For example, the president signed an executive order Wednesday that “compels slaughterhouses to remain open, setting up a showdown between the giant companies that produce meat and the unions and activists who want to protect workers in a pandemic.” Meat processing plants around the U.S. have shut down because of the coronavirus but the president said that “such closures threaten the continued functioning of the national meat and poultry supply chain, undermining critical infrastructure during the national emergency.” Using the Defense Production Act, he is ordering plants to stay open as part of the critical infrastructure needed to keep people fed amid growing supply disruptions from the outbreak. The government is expected to provide additional protective gear for employees as well as guidance. So, we will see. Clearly, the federal and state governments are convinced of the need to take important, often extreme steps to offset the impacts of the outbreak. These are leading to widespread charges of unfairness and inequity across the nation even as they raise questions of overall effectiveness — charges and concerns that should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday April 30, 2020 |
Legislation to Boost Ethanol Use Offered Legislation to provide funding to build out additional ethanol infrastructure has been offered in the US House of Representatives. The Clean Fuels Deployment Act of 2020 was introduced Tuesday by Rep. Abby Finkenauer, D-Iowa., and would authorize funding for installing and converting fuel pump infrastructure to deliver higher blends of ethanol and biodiesel. The Department of Transportation (DOT) would set up a grant program for eligible entities that will be used cover costs related to the deployment of fueling infrastructure; converting existing pump infrastructure to deliver ethanol blends of greater than 10% and biodiesel blends of greater than 20%; and the installation of fuel pumps and related infrastructure dedicated to the distribution of higher ethanol blends and higher biodiesel blends at fueling locations. The measure would also authorize funding to help build and retrofit traditional and pipeline terminals, including rail lines, to blend biodiesel, and to build and retrofit pipelines to carry ethanol and biodiesel. The measure would require the Underwriters Laboratory certify the equipment involved as being able to distribute blends with an ethanol content of 25% or greater. The bill authorizes $100 million annually would be authorized under for Fiscal Year (FY) 2021 through 2026 for the effort.
| Rural Advocate News | Thursday April 30, 2020 |
House Ag Chairman Peterson Supports Boost In CCC Borrowing, But Wants Conditions Raising the Commodity Credit Corporation (CCC) borrowing authority to $68 billion from a current $30 billion each fiscal year is supported by House Ag Committee Chairman Collin Peterson, D-Minn., but he wants conditions on any such increase. The American Farm Bureau Federation has advocated boosting CCC authority to $68 billion, a level which reflects what the level should be if it were adjusted for inflation. Among conditions he wants, Peterson told reporters he wants any CCC spending to be signed off by the leaders of the House and Senate Ag panels. "Going forward, it would not be like it was in the past," he said. “The CCC and the appropriators have become the farm bill; they are doing farm policy and they are not the experts on farm policy,” he said. “It should not be that way. If the farm bill is going to be kind of an afterthought, which is what it is at this point, then we might as well abolish the Ag committee.”
| Rural Advocate News | Thursday April 30, 2020 |
Thursday Watch List Markets Thursday is first notice day for U.S. grain futures and it will be interesting to see if corn deliveries are lighter than usual at these cheap prices or if supplies are being let go. Weekly grain export sales, U.S. jobless claims, U.S. personal incomes and an update of the U.S. Drought Monitor are all set for 7:30 a.m. CDT. U.S. natural gas inventory is at 9:30 a.m. Traders also remain interested in the latest news about coronavirus, meat processing plants and weather forecasts. Weather Thursday will be dry and warm across the primary crop areas. This will favor field drying and planting progress. Winter wheat conditions are still less than desired in the Southern Plains.
| Rural Advocate News | Wednesday April 29, 2020 |
Trump Using Defense Production Act to Keep Meatpackers Open President Donald Trump Tuesday announced an executive order to keep meatpacking plants open during the COVID-19 pandemic. The President will use the Defense Production Act to order companies to stay open as critical infrastructure, as meatpacking plants over the past couple of weeks closed with spikes in coronavirus cases among employees. The plan allows the federal government to supply additional personal protective equipment to meat processing facilities, according to Bloomberg News. The supply chain slowdown presents dire factors for farmers, with poultry and pork producers left with no alternative other than euthanizing animals. The order will affect processing plants for beef, chicken, eggs and pork. Republican U.S. Senators from Iowa, Chuck Grassley and Joni Ernst, this week, urged the administration to invoke the Defense Production Act. The Senators asked for assistance for processing plants, assistance for euthanizing animals, indemnity payments for depopulation costs and mental health assistance for all affected. ************************************************************************************ Growth Energy Praises House Bill to Boost Biofuel Infrastructure Growth Energy Tuesday announced the association's support of the Clean Fuels Deployment Act. The legislation authorizes $500 million over five years for the Department of Transportation to provide grants that incentivize the deployment of fueling infrastructure for ethanol and biodiesel. The bill specifically focuses on ethanol blends greater than ten percent, and biodiesel blends greater than 20 percent. The bill was introduced by U.S. House Democrats Abby Finkenaur of Iowa, Angie Craig of Illinois, and Republicans Roger Marshall of Kansas and Don Bacon of Nebraska. Growth Energy CEO Emily Skor says the legislation “offers a roadmap for the next wave of growth that will revitalize rural communities.” The program could also be used to enhance pipelines and terminals to blend and carry ethanol and biodiesel. Funding from the clean fuels grant program could be used to incentivize the deployment of biofuels infrastructure and convert existing infrastructure to deliver the higher blends. ************************************************************************************ Think Tank Outlines Steps to Help Rural America A progressive Washington, D.C. think tank recently issued a policy brief on ways lawmakers can help rural communities during and after the COVID-19 pandemic. The Center for American Progress is self-described as a progressive, independent, nonpartisan policy institute dedicated to improving the lives of all Americans. The brief released this week finds that many rural communities are less prepared than their urban counterparts to handle an influx of virus cases because they have fewer health care facilities, their populations tend to have more chronic health issues, and residents face transportation challenges. The organization suggests rural communities would benefit from Medicaid expansion, a national stay at home order, and dedicated funding for communities with a population under 50,000. An economist with the organization says, “Rural communities have been left behind by the government’s coronavirus response,” adding, policymakers should recognize “those communities are, in many ways, less equipped than big cities to manage the crisis.” ************************************************************************************ New Guidelines to Keep Poultry Processing Employees Safe and Protein Available New guidance from the Centers for Disease Control will help keep poultry processing workers safe and ensure the supply chain, according to the National Chicken Council. Responding to the new guidance this week, NCC President Mike Brown says, “We appreciate the administration’s new guidance in an effort to further keep our workers safe and keep food on the shelves.” CDC recommends facilities take measures to reduce COVID-19 risks. Specifically, the new guidance reiterates many already identified mitigation measures, including social distancing, engineering controls to minimize potential contact, protective gear and face coverings, shift staggering, health screenings, training and awareness, and financial incentives not to report to work sick. Brown says the biggest problem processors face is inconsistencies among state and local health departments and government officials who, in many circumstances, are developing their own criteria for maintaining operations. NCC says there must be a uniform approach across all states. NCC is urging states to adopt guidelines by the CDC and other federal agencies immediately. ************************************************************************************ House Members Request Swift and Fair Implementation of Relief for Farmers More than 100 members of the U.S. House of Representatives want COVID-19 related relief for farmers as effective and as immediately as possible. A letter this week to the Trump administration led by Republican Representative Rick Crawford or Arkansas, Austin Scott of Georgia, Rodney Davis of Illinois and Tom Emmer of Minnesota outlined the request. Specifically, the letter highlights concern that there will be a severe gap between producers' losses and Department of Agriculture aid. The letter implores USDA to include all producers and to not limit payments simply based on income, risk management practices, or past USDA payments. Further, the letter notes Congress's $14 billion replenishment of the Credit Commodity Corporation and requests USDA to include the funds in the relief package. Representative Davis says, "Protecting our nation’s food supply is critical during this pandemic to ensure food is available now and in the future." Representative Crawford adds, "Our nation's agricultural producers are fighting new challenges every day due to the current pandemic, and obtaining assistance shouldn't be added to their plate." ************************************************************************************ NCBA Applauds Effort to Provide Flexibility to Livestock Haulers The National Cattlemen’s Beef Association this week applauded Senators seeking flexibility for livestock haulers. A bipartisan letter from 24 Senators outlined the need to the leadership of the Senate Committee on Commerce, Science and Transportation. NCBA Government Affairs Director Allison Rivera says, “Hauling livestock is inherently different than hauling typical consumer goods, and we continue to look for flexibilities within Hours of Service to safely haul livestock around this country.” The letter says that as the Senate Commerce Committee has jurisdictional oversight over Hours of Service regulations applicable to commercial motor vehicles, “we respectfully request that your committee work with us to provide greater flexibility for haulers of agricultural products.” The unique circumstances involved in the transport of perishable and live goods warrant flexible laws and regulations to ensure a safe environment, the lawmakers say, for animals and drivers. The letter states, “It is important that Hours of Service regulations provide for a commonsense framework for drivers, rather than a one-size-fits-all model.”
| Rural Advocate News | Wednesday April 29, 2020 |
Washington Insider: Taking Aim at the Tariffs At this moment when broad efforts are underway to reduce the impacts of the coronavirus, lobbyists are pushing hard on many areas, and are especially scrambling to expand relief on more tariffs. Bloomberg says. It notes that tariff payments for U.S. companies are coming due soon on everything from imported Chinese fabrics to Italian cheeses and Scotch whisky. And, the administration gave some importers a three-month postponement on duties for select goods imported in March and April but excluded from the announced deferral billions of dollars in other tariffs, including those imposed on goods from China, imported steel and aluminum, and a number of products from Europe. The report said that the decision was seen as a “blow to industries pushing for more comprehensive duty relief.” “We are going to push very, very hard on Congress to say, ‘OK, thanks for the beautifully wrapped box, but can we put something in it now?’” said Nicole Bivens Collinson, the head of the international trade and government relations practice at Sandler, Travis & Rosenberg. The former official in the office of the U.S. Trade Representative is lobbying for an informal coalition of companies seeking to defer most other tariffs. Advocates say such a policy wouldn’t have a lasting impact on government revenues because they are simply seeking to make the payments at a later date. The new tariff deferral policy, announced on April 19, also doesn’t refund any duties already paid, even in the period covered by the deferral, thus limiting its impact to select products imported in April. Tariff invoices for May will begin to arrive soon. Collinson said the new rule’s limited scope and eligibility criteria are problematic during the economic collapse. One of her clients in the apparel industry, she said, is only seeing $56,000 of its $190,000 in duty payments deferred under the new rule. “My thing is, why is the government taking the money out of their hands, only to turn around and then give them a stimulus package to put it back in?” Collinson said. The policy shift came after weeks of denials by the administration that it would make such a move. Industry groups and lobbyists are now urging officials and lawmakers to go further. Steve Lamar, the leader of the American Apparel & Footwear Association said. “Still, there is more that can and should be done.” He is among those arguing to include in the deferral the so-called Section 301 tariffs on items imported from China which impact many retail and apparel companies. Brian Dodge, the president of the Retail Industry Leaders Association (RILA), is pushing for a 180-day deferral on all tariff payments. “The limited duty deferral is a start and it is appreciated. We hope the administration will be open to doing more,” RILA spokeswoman Melissa Murdock said, and added that “a suspension or full repeal of the 301 tariffs remains the ultimate goal and would do the most to help retailers.” Prior to the change, Treasury Secretary Steven Mnuchin twice phoned into CEO calls held by RILA, during which executives advocated to defer the duties on Chinese items, according to Jo-Ann Stores, Inc., CEO Wade Miquelon. He said total tariff payments were “far more” than the company’s operating profit and have left retailers caught up in a trade war with China and hurt by tariffs that were sparked by intellectual property theft allegations. “It’s not China or anybody else paying the tariffs. It’s U.S. companies that are paying,” said Americans for Free Trade coalition spokesman Jonathan Gold, who is vice president of supply chain and customs policy at the National Retail Federation. U.S. steel companies and other domestic producers are pushing back against the effort to expand the deferral. For example, the Coalition for a Prosperous America represents a group of unions and domestic manufacturing and agricultural interests wrote to the president on Wednesday urging the administration not to expand the deferral. The letter stated it would “simply increase imports and make it harder for our members to avoid laying off employees.” The president was adamant he wouldn’t delay any tariffs before doing so this month. While limited that initial reversal gives Collinson hope the administration will go even further if companies can illustrate how the initial deferral was helpful and explain why it should be more inclusive. She’s hoping to leverage congressional support on the issue to have it included in future relief legislation. “We’ve written language that will accentuate the change,” Collinson said. “It’s three sentences, it’s very easy. It’s one of those things where if you have the right support it can become part of a piece of legislation pretty easily.” So, we will see. Certainly, the coronavirus and its impacts raise new questions about trade issues â?? and, especially about the administration’s “get tough” tariff policies. Amid efforts to provide new supports to industries, the basis for the earlier tariff fights should be reconsidered â?? a process producers should watch closely as it expands, Washington Insider believes.
| Rural Advocate News | Wednesday April 29, 2020 |
Ethanol Industry Continues Push For Aid Help for the U.S. ethanol sector will benefit both farmers and the renewable fuels industry, according to American Coalition for Ethanol (ACE) CEO Brian Jennings. “More than half of U.S. ethanol production capacity is already offline, high-skill jobs are being shed, livestock and food processing customers are facing supply disruptions, and our members’ working capital is vanishing. Ethanol use could fall by more than three billion gallons in 2020, eliminating the market for at least one billion bushels of U.S. corn,” Jennings wrote in a letter to President Donald Trump. “As you did on April 21, when you directed the Secretaries of Energy and Treasury to formulate a plan to provide funds to the oil and gas industry, we urge similar action for our sector.” Noting the group has sought out help from EPA relative to the 2020 biofuel requirements under the Renewable Fuel Standard (RFS), Jennings said the situation has “exposed a shortcoming in the agency’s rulemaking, and failure to increase the RFS this year will result in a waiver of promised gallons.”
| Rural Advocate News | Wednesday April 29, 2020 |
Euthanizing Hogs Brings COVID-19 Actions Around 3,000 healthy hogs were euthanized in Minnesota last week, according to the Minnesota Pork Producers Association, and around 200,000 or more could soon follow. House Ag Committee Chairman Collin Peterson, D-Minn., said Tuesday that the JBS hog plant in Worthington, Minnesota, is reopening today (Wednesday), but will be euthanizing hogs and not processing them into meat to reach consumers. The action will take a small crew that can practice social distancing, he noted. And, President Donald Trump Tuesday said he would sign an executive order that would invoke Meanwhile, Iowa Republican lawmakers, including the state’s governor and ag commissioner, are calling on USDA to compensate hog producers for animals they have to euthanize. “At current capacity levels, there are 700,000 pigs across the nation that cannot be processed each week and must be humanely euthanized. Iowa produces one-third of the nation’s pork supply and one-fourth of the nation’s pork processing capacity. Simply put, Iowa pork producers cannot operate if they cannot send their pigs to market,” the letter said. A group of Minnesota state lawmakers also penned a letter to President Donald Trump, asking for him to direct the Centers for Disease Control and Prevention (CDC) to coordinate efforts to develop plans to reopen processing plants, to work with small processors to get license exemptions to ensure as many hogs as possible can be processed, work with regional governors and mobilize the National Guard to assist where needed and coordinate any hog destruction to take place at processing plants rather than on-farm.
| Rural Advocate News | Wednesday April 29, 2020 |
Wednesday Watch List Markets Traders will be poring over the details of Tuesday's executive order to keep meat processing plants open. The Department of Energy's weekly report of energy inventories includes ethanol production and will be important for Wednesday's grain markets. A report of first quarter U.S. GDP is due out at 7:30 a.m. CDT, followed by U.S. pending home sales at 9 a.m. and an announcement from the Federal Reserve at 1 p.m. CDT. News updates on coronavirus, weather and trade all remain topics of interest. Weather Light to moderate rain is in store for the eastern Midwest and Delta Wednesday, interrupting planting. Drier conditions elsewhere will favor progress. Strong winds through northern and central areas will cause additional topsoil drying and will stress winter wheat in the western and southwestern Plains.
| Rural Advocate News | Tuesday April 28, 2020 |
CDC Issues Updated Guidance for Meatpackers New guidance by the Centers for Disease Control seeks to protect meatpacking workers from COVID-19. The meat and poultry processing workers are not exposed to the virus through the meat products they handle. However, their work environments—processing lines and others where they have close contact with coworkers and supervisors—may contribute substantially to their potential exposures. Many meatpacking facilities across the nation have closed for short periods due to infection rates of workers at the facilities. The CDC says meatpackers should configure work environments so that workers are spaced at least six feet apart, if possible. Additionally, facilities should use physical barriers, such as strip curtains, plexiglass or similar materials, or other dividers or partitions, to separate meat and poultry processing workers from each other, if feasible. Further, facilities should consider consulting with a ventilation engineer to ensure adequate ventilation in work areas to minimize workers' potential exposures. The National Cattlemen’s Beef Association welcomed the response, saying the guidance protects workers, and supports the operation of beef processing plants. ************************************************************************************ USDA Launches Coordination Center for Livestock Producers Impacted by Reduced Demand The Department of Agriculture announced a coordination center to assist producers impacted by meat processing plant closures late last week. USDA says livestock and poultry producers face an unprecedented emergency due to COVID-19, particularly with the closing of meat processing plants in several states. The USDA Animal and Plant Health Inspection Service is establishing a National Incident Coordination Center to provide direct support to producers whose animals cannot move to market as a result of processing plant closures due to COVID-19. Going forward, APHIS' Coordination Center, State Veterinarians, and other state officials will assist in identifying potential alternative markets if a producer is unable to move animals, and, if necessary, advise and assist on depopulation and disposal methods. Additionally, APHIS will mobilize and deploy assets of the National Veterinary Stockpile as needed and secure the services of contractors that can supply additional equipment, personnel, and services, much as it did during the large-scale Highly Pathogenic Avian Influenza emergency in 2015. ************************************************************************************ AEM: Additional Relief Promising, But More Needed The Association of Equipment Manufacturers says additional aid authorized by Congress last week is encouraging, but lawmakers need to do more. Late last week, Congress passed new legislation to provide $484 billion in additional relief for Americans enduring hardships due to the COVID-19 pandemic. This includes $310 billion for the Small Business Administration’s Paycheck Protection Program, which AEM says many equipment manufacturers are relying on to keep their operations going. However, AEM President Dennis Slater says,” too many equipment manufacturers are still struggling to stay open and on the job.” The Paycheck Protection Program is helpful for many small equipment manufacturers. Still, Slater says Congress must now turn their attention to a large number of manufacturers who do not qualify for this program but still desperately need support. AEM is the North American-based international trade group representing off-road equipment manufacturers and suppliers, with more than 1,000 companies and more than 200 product lines in the agriculture and construction-related industry sectors worldwide. ************************************************************************************ USTR: USMCA Effective July 1 The U.S.-Mexico-Canada-Agreement enters effect July 1, according to U.S. Trade Representative Robert Lighthizer. The July 1 date represents a one-month delay from the original timeline, following the signing of the agreement by the U.S., Canada and Mexico. In a statement last week, Lighthizer says the agreement supports more balanced, reciprocal trade, leading to freer markets, fairer trade, and robust economic growth in North America. The agreement contains significant improvements and modernized approaches to rules of origin, agricultural market access, intellectual property, digital trade, financial services, labor, and numerous other sectors. Lighthizer says, “The crisis and recovery from the COVID-19 pandemic demonstrates that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America.” Lighthizer calls the start of USMCA a “landmark achievement in that effort.” The trade agreement ensures most agriculture tariffs will remain at zero, and expands dairy market access to Canada for the U.S., among other benefits. ************************************************************************************ Senators Seek Support for Rural Broadcasters A large group of U.S. Senators wants relief for local and rural broadcasters and newspapers. More than 70 Senators signed a letter to the Trump administration regarding local media, following a similar letter last week. The lawmakers say that in many rural areas, broadcast stations are the predominant or only form of local information. The letter says it is critical local and rural media can continue to operate to help Americans stay up to date with the latest news and information. The Senators requested the White House Office of Management and Budget to work with federal agencies to increase advertising with local media outlets. The request will help local media outlets, "ensure they are able to continue to operate throughout the COVID-19 pandemic.” Many federal agencies maintain advertising accounts to provide notices and information to the public. The recent passage of the CARES Act, according to the lawmakers, provides opportunity for the federal government to relay essential information to the public through local advertisements. ************************************************************************************ Farm Foundation Accepting Nominations for Young Agri-Food Leaders Network Farm Foundation is seeking nominations for its Young Agri-Food Leaders Network, a new program created to actively engage emerging leaders in food and agribusiness. The young agri-food leaders will participate in a year-long series of interactive learning and networking experiences, focused on gaining a deeper understanding of the food and agriculture value chain. The program also hopes to help young professionals build a strong, enduring network of peers and mentors in business, farming and government. Up to ten participants will be sponsored to attend events, engage in virtual conversations and participate in exclusive learning and networking opportunities. To be eligible for this program, individuals must be a U.S. citizen, between the ages of 25 and 40, be employed in the agri-food industry, and show significant leadership potential. Nominators may be colleagues, business partners, or any other person familiar with the Young Agri-Food Leader nominee's career. The deadline to nominate a young agri-food leader is May 15, 2020. Visit farmfoundation.org for more information.
| Rural Advocate News | Tuesday April 28, 2020 |
Washington Insider: Protecting Food Plant Workers As businesses struggle to craft strategies to reopen following the anti-virus shutdown, The Hill is reporting that calls are growing for more protections for meat-plant workers, and that the challenge is daunting. Recently, Smithfield Foods, the world's largest pork producer, shut down a pork processing plant in South Dakota that accounts for up to 5 percent of production after more than 700 of its workers were infected and one died from COVID-19. Tysons Food, Cargill and JBS, have also been forced to close plants after workers were infected. A USDA spokesperson told The Hill that 137 of its food inspectors have tested positive for the virus. Federal inspectors were directed to find or make their own masks and face coverings on April 9. Rep. Jim Costa, D-Calif., a member of the House Agriculture Committee, called the USDA directive “troubling" in a letter sent Friday to USDA Secretary Sonny Perdue. “Shortages of personal protective equipment are well known and given the Vice President’s April 16th public pledge to ensure every frontline food worker has a mask, I hope this directive is no longer needed,” Costa wrote. In a letter to Vice President Pence, the United Food and Commercial Workers International Union told the administration to “prioritize the safety and protection of all grocery workers and workers in meatpacking and food processing plants.” The UFCW told the administration to deploy protective equipment to meat packing plants and mandate social distancing at their workplaces. The union is also asking Vice President Pence to deem its workers eligible for prioritized testing. “Given the contagious nature of this pandemic and the significant number of workers in these meatpacking plants and processing facilities, the above-mentioned recommendations are among the critical steps that we believe must be adopted as soon as humanly possible,” the letter read. According to UFCW, more than 5,000 workers have been diagnosed or exposed. The union also requested a halt to line speed waivers, which it says further endanger employees working on slaughter lines. USDA's Food and Safety Inspection Service approved 11 regulatory waivers in the first two weeks of April for poultry plants to increase their maximum line speed. The pressure to increase line speed has come as the pandemic threatens to create food shortages, The Hill said. Ben Lilliston, interim co-executive director at the Institute for Agriculture and Trade Policy, told The Hill that most of the meat on the market right now was produced in March and most meat producers that experienced closures, are international. He said if these processing plants are closed for an extended period of time and if other meat processing plants in Mexico, Canada and elsewhere also experience shutdowns, consumers could see changes on supermarket shelves. “These highly-profitable global meat companies need to take a series of protective measures for their workers. That includes slowing down the lines to allow for more social distancing,” he said. “This will ultimately allow the plants to re-open and keep them open. In the longer-term we need to address the vulnerability of this very concentrated system with huge animal operations feeding into huge meat processing plants.” The UFCW claims 250,000 members who are meat and food-processing workers and represent about 80% of U.S. beef and pork production and 40% of poultry production. Plant workers on a recent conference call organized by the union said they are afraid of falling ill although meat processors have been bleaching hallways and doorways for safety and installing dividers to separate employees. "As far as social distancing, it's almost impossible," said Margarita Heredia, who works in a JBS pork plant in Marshalltown, Iowa. "There's no room." "We’re working hard to protect our team members during this ever-changing situation, while also ensuring we continue fulfilling our critical role of helping feed people," Tyson spokeswoman Liz Croston said. The reports from plants and workers across the industry indicate the difficulty of maintaining the distance and other protections necessary to protect workers â?? and the risks have grown both for plant workers and federal employees responsible for protection services, threats that seem to be intensifying. USDA should increase its attention to these problems as this especially the virulent virus attack intensifies. Washington Insider believes.
| Rural Advocate News | Tuesday April 28, 2020 |
SBA Issues Guidance On Ag Eligibility For PPP Agricultural producers, farmers, and ranchers are eligible for small business rescue loans provided they meet certain requirements, according to new Payroll Protection Program (PPP) guidance from the U.S. Treasury Dept. and Small Business Administration (SBA). Qualifications include having 500 or fewer workers or if the business fits within the revenue-based sized standard, which is average annual receipts of $1 million. Producers, farmers, and ranchers can also qualify if their business meets SBA’s “alternative size standard,” which is defined as having maximum net worth not more than $15 million, and average net income after federal income taxes, excluding any carry-over losses, for two full fiscal years before the application date of not more than $5 million. Guidance also says agricultural and other forms of cooperatives are eligible to get PPP funds if other requirements are met.
| Rural Advocate News | Tuesday April 28, 2020 |
Pressure Continues From Lawmakers On Ag Aid Effort Some 121 lawmakers penned a letter to President Donald Trump on the ag aid plan being drawn up by USDA, with the letter signed by key lawmakers like House Minority Leader Kevin McCarthy, R-Calif., House Republican Whip Steve Scalise, R-La., and ranking member of the House Ag Committee Mike Conaway, R-Texas. The lawmakers pointed out the losses being faced by cattlemen and others in the ag sector and it raised a familiar theme: Relief should not be further reduced by payment limitations “that would harm real family farmers (of both specialty and row crops), ranchers, livestock and dairy producers.” Pay limits “may have a place in Farm Bill debates,” the letter said, “and may even be necessary in the context of trade aid, but if the goal of this emergency package is to support critical infrastructure and industry, it needs to flow in proportion to production, risk, and losses.” The lawmakers said USDA needs to come up with a payment effort that does “not discriminate against producers who marketed their crop or used risk management practices, including hedging and forward contracts. These are crucial to producers managing enormous risks.” Plus, the help should not exclude producers of any crop. As for the Commodity Credit Corporation (CCC) $14 billion borrowing authority that comes available in July, the lawmakers said USDA should “include this amount in this relief package in order to address the concerns we have outlined and offer relief in phases as you did so successfully under the Market Facilitation Program (MFP).”
| Rural Advocate News | Tuesday April 28, 2020 |
Tuesday Watch List Markets The Federal Reserve begins a two-day meeting Tuesday and expectations are low for a major change in policy, but comments will be watched on Wednesday. An index of consumer confidence is Tuesday's only official report, due out at 9 a.m. CDT. U.S. coronavirus statistics remain crucially important and have looked more optimistic lately. Weather forecasts, trade news and meat plant updates are all of interest. Weather Showers with light to moderate rain totals will cross the northern and western Midwest along with portions of the Delta Tuesday. Areas with rain will have some fieldwork and planting interruptions. Drier conditions elsewhere will offer progress, notably in the Plains. Heavy rains in some eastern Midwest areas during the past weekend mean extensive interruptions in fieldwork. Western and northern Plains wheat will be stressed by very dry, windy and hot conditions, which also bring high wildfire potential.
| Rural Advocate News | Monday April 27, 2020 |
Senators Want Farm Payment Caps Removed A bipartisan group of senators wants the Trump Administration to remove the caps on the amount of direct coronavirus relief farmers can get under USDA’s new aid package. Politico says the $19 billion plan for relief, put together by President Trump and Ag Secretary Sonny Perdue, includes $16 billion in direct payments, which are capped at $125,000 per commodity and $250,000 per person. That’s in line with payment limits from the 2018 Farm Bill. In a letter to the president, 28 senators pointed out that the limits could disproportionately hurt some of the hardest-hit corners of agriculture. Perdue is hoping to launch the aid program in May, and the senators want the payment limits scrapped before USDA puts the finishing touches on the aid program. For example, fresh produce growers have higher production costs than other farmers. Strawberry growers can spend up to $30,000 an acre. The senators say that means the current payment limitations will be “too restrictive to meaningfully address the losses” they’re facing. Purdue has already said there won’t be enough money to help all sectors of agriculture, adding that getting rid of payment limitations will likely mean running out of money that much quicker. ********************************************************************************************** China Studying How to Expedite U.S. Purchases Despite Opposition Bloomberg says China is looking at possible ways to speed up its purchases of American farm goods to meet its Phase One Trade Agreement commitments. However, it appears not everyone is happy with the idea. The government is looking at speeding up the process because the coronavirus delayed some imports. Proposals include potentially buying 10 million tons of U.S. soybeans for Chinese state reserves if demand from private buyers isn’t enough. China could also fulfill its annual import quota of corn, which is currently at 7.2 million tons, with grain from America. The Asian nation could also consider buying more than its quota, potentially reaching as high as 20 million tons of U.S. corn imports. China is also looking at buying one million tons of U.S. cotton for government reserves. However, Bloomberg points out that there is some opposition to the planned buys. Some officials are questioning whether the government should be trying to expedite U.S. purchases given the downturn in the Chinese economy after the coronavirus outbreak. The current round of discussions on the purchases is reported to be at the lower levels of the Chinese government, with no final decision made yet. ********************************************************************************************** PPP Relief Act Passed by Congress Expected to Help Agriculture Congress passed the Paycheck Protection Program Increase Act and President Trump signed in on Friday. National Cattlemen’s Beef Association Vice President of Government Affairs Ethan Lane says his organization is pleased with congress passing more money for PPP. “America’s cattle producers are working hard every day to keep feeding America, even as they face more than $13 billion in financial losses while also tending to the health of their families during the pandemic,” Lane says. “We hope the swift passage of the PPP Act means more aid will be available to cattle producers.” Lane added that the NCBA is also grateful that Congress explicitly authorized producer eligibility for Economic Injury Disaster Loans and emergency grants administered by the Small Business Administration. Todd Van Hoose, President and CEO of the Farm Credit Council, says, “We will do everything in our power to get farmers and ranchers access to funding through the Paycheck Protection Program.” Public Lands Council President Bob Skinner says, “Federal lands ranchers play a major role in American agriculture, raising 60 percent of our nation’s sheep herd and 40 percent of the nation’s cattle herd. The expanded relief will help to make sure that the cattle and sheep industries can keep producing food and fiber.” ********************************************************************************************** Growth Energy Calls for Relief for U.S. Ethanol Two more of the country’s ethanol plants are going offline amid the COVID-19 pandemic. Growth Energy CEO Emily Skor says that underscores the industry’s need for help. “We just went through the third week in a row that ethanol production hit a record-breaking low, even as stockpiles hit a new record-breaking high,” Skor says. “The evaporation of fuel demand due to COVID-19 has been a knock-out blow to biofuel plants across the heartland, who were already fighting an uphill battle against trade barriers, regulatory threats, and a flood of foreign oil.” She says while half the industry is already offline, two more ADM plants, one in Iowa and the other in Nebraska, have been added to the growing list of plants impacted. “Ethanol producers represent the heart of the rural economy, and when they’re forced offline, the ripple effect can be felt across the agricultural supply chain, including farmers who are without a market for their crops, as well as meatpackers and ranchers who rely on local ethanol plants for animal feed and carbon dioxide,” she adds. “With plans to support the oil and gas industries already in place, it’s vital that policymakers give the same consideration to biofuel workers and farmers equally impacted by the disruptions to the motor fuel market.” ********************************************************************************************** Senate Democrats Release COVID-19 Impact Report Senate Ag Committee Ranking Member Debbie Stabenow of Michigan led a group of fellow Democrats in releasing a report on the impact of COVID-19 in rural America. The report was put together by the Democratic Policy and Communications Committee, which Stabenow chairs. The Hagstrom Report says senators from Minnesota, West Virginia, and Montana joined Stabenow on a conference call, and they pointed out that the coronavirus is later in coming to rural America but is now spreading rapidly. The senators repeatedly brought up the issue of broadband internet access during the conference call. “Tele-health is a wonderful thing if you have internet service,” says Joe Manchin of West Virginia, “but worthless for those people who don’t have access to the internet.” Some of the highlights from the Democratic plan for responding to COVID-19 include widespread, rapid testing to save lives, contain the spread, and reopen the economy. It also includes immediate high-speed internet funding to close the digital divide and deploy high-speed internet across the country. They also want protections for the food supply and food industry workers, as well as expedited support for farmers, ranchers, and small businesses to help them weather the crisis. ********************************************************************************************** Farmer Pessimism Hits Historic Level With everything going on right now, it’s probably not surprising that farmers aren’t optimistic. DTN found that farmer attitudes have hit historic lows because of poor commodity prices and falling economic conditions due to COVID-19. The DTN Agriculture Confidence Index dropped a staggering 97 points from December 2019, with the index currently at 67. It’s a 43-point drop from the spring of 2019. The previous record-low index level was 71.9 in August of 2016, as falling crop prices hit during a divisive presidential election. In the latest survey, record or near-record pessimism was found across the entire agricultural spectrum, and it didn’t matter what crops farmers were growing, what they’re income level was, or where they were located. Numbers above 100 indicate optimism, while numbers below 100 show pessimism. The current survey produced a current expectation score of 55, with a future expectation index at a still-pessimistic 73. DTN says it is significant that the record lows come during a spring survey as optimism tends to be at its highest as farmers get ready to plant. Midwest farmers showed the most pessimism for current conditions, yet they also showed the most optimism for the future.
| Rural Advocate News | Monday April 27, 2020 |
Washington Insider: The New Supply Chains Much of the press is in an introspective mode this week, attempting to assess what is happening to the global economy and what is likely to follow. For example, Bloomberg says that when the timeline of the pandemic of 2020 is complete, March 24 will stand out as a day to remember. On that day CEO of Coca-Cola Co. described the supply chain as “creaking around the world,” James Quincey said, clearly worried about the need to adjust. Now, a month later, many supply chain continue to face pressures and some shifts are worsening, particularly in the pipelines for fresh food and medical goods. But Quincey said his plant shutdowns were confined to “just a couple of places” and he even congratulated employees for keeping “everything” running. A “great strength” during the disruptions, he said on April 21, has been local production of Coke’s soft drinks and juices -- we’ve had some issues on timing of ingredients but even those are much better than they were a few weeks ago, he said.” Quincy noted that the same can’t be said of American meatpacking companies that have closed processing plants to contain outbreaks among their workers, or auto companies with supplier networks sprawling from southeast Asia to eastern Europe that are at least another week away from restarting assembly lines. Industrial giants like Alcoa Corp. have to reckon with weak global demand for several more months or perhaps longer. The article notes that Unilever, with more than 200 factories around the world, has been running at about 85% capacity, reflecting “heroic work by people on the front lines of our supply chain, adjusting to new patterns of demand and securing new supply routes for ingredients,” Chief Executive Officer Alan Jope told Bloomberg. Like many companies, the Anglo-Dutch maker of Lipton tea, Breyers ice cream and Dove soap has been trying to ensure it has enough workers who face both government restrictions on travel and time off needed when the virus strikes them. When Northern Italy shut down, the company got approval within hours to keep producing a line of food products in the region. In India, a similar request took four to five days. When an outbreak hit a facility in the Middle East where many workers live in dorms, Unilever booked hotel rooms so those who tested positive could stay isolated and the others could go to work, according to Jope. “Most of our supply chain is local, it’s very flexible, and generally speaking the vast majority of the products we sell in a country we supply in that country,” Unilever Chief Financial Officer Graeme Pitkethly said on a conference call with reporters on Thursday. For Danone, the French food processing company, flexibility became one of its biggest challenges in adjusting to “significant changes in consumers’ buying behaviors, with unprecedented swings in weekly demand accentuated by stocking patterns in the first weeks, the shift from out-of-home to at-home food consumption, as well as shifting preferences to larger pack sizes." The tech industry continues to wrestle with uncertainty around the pandemic, Bloomberg says. This month, Broadcom Inc. warned customers they’ll need to place orders for parts at least six months ahead of time, a surprisingly long lead time that points to wider than anticipated disruptions to the global supply chain. Taiwan Semiconductor Manufacturing Co., supplier of advanced silicon to most every major name from Apple Inc. to Huawei Technologies Co. and Qualcomm Inc., acknowledged the potential for supply-chain disruption in its annual report released April 21. CFO Wendell Huang however stressed that deft adjustments could mitigate the fallout. Signaling confidence in a gradual recovery, TSMC is setting aside $16 billion for technology upgrades and capacity this year. “We did not see any disruption from the material supply or any supply-chain activity that has been in disruption mode. Although I did say that because of shelter-in-home that some of the tool delivery has been delayed from two weeks to about one month,” investor relations chief Jeff Su told reporters on a post-earnings conference call. “We continue to work with tool vendors and minimize the impact on the capacity building. So for the whole year, we don’t expect it to have a big impact.” For companies in the U.S. and Europe, ultimately what may happen is a broad reassessment about whether key supplies ought to be manufactured closer to home, even at higher cost for smaller markets. “For the first time we're seeing not just one or two countries closing down, we have three countries closing down,” said David Farr, CEO of Emerson Electric Co., which supplies automation equipment to the oil and gas industries and produces consumer goods, such as garbage disposals and shop vacuums. “So what we're going to have to do here is evaluate this from an economic standpoint and enterprise-risk standpoint.” So, we will see. It is clear that global supply chains will need to change and likely will increase production costs. How much the competitive position of many now competitive firms shifts and where the impacts turn out to be are changes that should be watched closely as the global landscape adjusts—changes likely to affect the overall patterns of trade, Washington Insider believes.
| Rural Advocate News | Monday April 27, 2020 |
Push To Alter Or Remove Pay Caps On USDA Aid Lawmakers from both the House and Senate have fired off letters to USDA and the White House urging changes to the ag aid to be doled out by USDA. Much of the attention focuses on the payment limit USDA announced of $125,000 per commodity and a total of $250,000 per person or entity. Lawmakers argue some growers will quickly hit those limits – like cattle, dairy and specialty crop producers – and that will deny them much-needed assistance as those operations will quickly hit the limit. Action to help the U.S. hog industry is being pushed by House Ag Committee Chairman Collin Peterson, D-Minn., and others, including steps to deal with any potential euthanizing of animals that cannot be shipped off to market. Pressure is mounting on USDA to make changes to its aid package as the details are being finalized, but some provisions are not seen changing. The American Farm Bureau Federation (AFBF) said that it has learned USDA could shift funds between the various commodities, some self-certification of losses may take place by producers, govern program payments will not factor into the aid and there still will not be any ethanol aid in the initial effort.
| Rural Advocate News | Monday April 27, 2020 |
Union Warns US Food Supply At Risk From COVID-19 The United Food and Commercial Workers (UFCW) International Union said the U.S. food supply is at risk from the COVID-19 situation, reporting that over 5,000 of its members have been sick or have been exposed to the virus. The union represents about 40% of all food processing workers. About 10% of beef production and 25% of pork production has been affected by either plant closures or slowing of facilities. The union called for national safety standards for all food and meatpacking workers and said that those workers need adequate personal protective equipment (PPE). Plus, they said that testing for these workers needs to be increased. The union also said that USDA should reverse the 11 regulatory waivers that have allowed some poultry plants to increase line speeds, arguing the increased speed makes social distancing difficult. While warning of potential food shortages due to the differing food supply chains with retail and food service channels, UFCW President Marc Perrone said, “How they are able to shift those lines is very important about whether or not we are going to see some of the shortages.” The union said it does not want plants shut down, but said workers need protective equipment and adequate testing.
| Rural Advocate News | Monday April 27, 2020 |
Monday Watch List Markets Coronavirus new updates and the latest weather forecasts are apt to be at the top of list for Monday's market topics. USDA's weekly report of grain export inspections is set for 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. In Monday's report, corn and spring wheat planting along with winter wheat conditions are apt to get the most attention. Weather Rain showers with mostly light amounts will cross the Midwest Monday, bringing some interruptions to fieldwork and planting. A few showers are also indicated in the interior Northwest. Temperatures will be seasonal to above normal in the Midwest and above to much above normal in the Plains, a sharp contrast to last year's cold and wet pattern.
| Rural Advocate News | Friday April 24, 2020 |
China Expected to Rebuild Commodity Reserves with U.S. Buys Three sources have told Reuters that China is looking to purchase up to 30 million tons of crops from the U.S. to help rebuild state stockpiles. The Asian nation is looking to protect itself from further supply chain disruptions brought on by the COVID-19 outbreak. It would also help China make good on its Phase One Trade Agreement promises to buy more U.S. crops. China is planning to buy approximately 10 million tons of soybeans, 20 million tons of corn, and one million tons of cotton and add them to its state reserves. Reuters says those numbers come from two of the sources who were briefed on the government’s plan. The bulk of the crops are expected to come from the United States. “The main message from Beijing is to help secure people’s livelihoods,” one of the sources tells Reuters. “It’s a good time to build up reserves, especially when the prices of the goods are at quite low levels.” Beijing is also planning to buy one million tons of sugar and two million tons of soybean oil to add to its reserves. The sources aren’t clear on where those supplies would be coming from. ********************************************************************************************** Another Meatpacking Plant Suspends Operations Tyson Foods announced it will be indefinitely suspending operations at its plant in Waterloo, Iowa, which is its largest U.S. pork plant. That plant shutting down operations means approximately 15 percent of pork processing capacity across the country has gone offline. More than 150 of the country’s largest meat plants are in counties where the rate of COVID-19 infections is already relatively high. That’s according to a new investigation by USA Today and the Midwest Center for Investigative Reporting. The investigation found a rash of coronavirus outbreaks at dozens of meatpacking plants across the nation that’s far more extensive than first thought. An extensive review of the cases shows that it could get worse. The rate of infection around those 150 plants is higher than the rates of infection in 75 percent of the other counties across the country. Experts say the industry has maintained a sufficient level of production despite infections in more than 2,200 workers at 48 plants. Gary Anthone, the chief medical officer in Nebraska, says long-term care facilities were among the biggest initial concerns. “If there’s one thing that’s keeping me up nights right now, it’s the meat processing and manufacturing plants,” he says. ********************************************************************************************** Major WTO Countries Pledge to Keep Food Exports Flowing Major countries involved in the World Trade Organization, including China and the U.S., pledged to keep from imposing restrictions on the free flow of food. Although a few countries have imposed such export restrictions, trade experts fear more food export bans could be on the horizon, which also happened during a global spike in the price of food in 2007. David Beasley is head of the World Food Program at the United Nations. He says famines of “biblical proportions” could take place because of the coronavirus pandemic if urgent steps aren’t taken. In a possible worst-case scenario, Beasley says famines could take hold in about “three dozen countries.” Ten of those countries already have more than one million people on the edge of starvation. A CNN report says Beasley appealed to UN member states to act now. “There are no famines yet,” he says. “But I must warn you, if we don’t act now to secure access, avoid funding shortfalls, and avoid disruptions to trade, we could be facing multiple famines of biblical proportions within only a few months.” ********************************************************************************************** Groups Ask Treasury Secretary to Guard Against Further Ag Consolidation A coalition consisting of 68 farmer, environmental, and antitrust groups across the country sent a letter to Treasury Secretary Steven Mnuchin (Muh-NOO-chin) on consolidation. They’re asking him to ensure that pandemic relief funds do not lead to the further consolidation of the food and agriculture industry. The letter asks Mnuchin to invest the stimulus funds in farming systems that lift farmers and rural communities while providing opportunities for diverse, sustainable agriculture systems to thrive. The letter says the current food system that’s under the control of a few major corporate players isn’t sustainable, a reality brought forth by the COVID-19 outbreak. The letter says “While farmers and advocates of rural communities are closely watching how USDA will distribute the $9.5 billion allocated through the CARES Act, little discussion or oversight is being given to this other, much-larger pot of money with few strings attached.” The groups want Mnuchin to make sure that money doesn’t go straight from the Treasury Department into the pockets of larger corporations. “During this crisis, relief must be prioritized for the frontline workers and farmers who are the backbone of America’s food supply,” the letter adds. “Consolidation in food and agriculture has already taken a toll on the security of our food system.” ********************************************************************************************** ASF Could Cost the U.S. Up To $50 billion Iowa State University economists put together a study on the economic impact an outbreak of African Swine Fever would have on U.S. hog herds. The researchers calculated the grim figure by determining that 140,000 jobs would be lost as a result of a downsized domestic pork industry devastated by uncontrolled ASF. The lead study author, Dermot Hayes, professor of economics and finance, says researchers looked at two scenarios. One assumes the disease spreads to feral swine and that the U.S. is unable to eliminate the disease over the 10-year projection period, called the all-years scenario. The second assumes that the U.S. gets the disease under control and reenters the export markets within two years. The immediate impact of both scenarios is a 40-to-50 percent reduction in domestic live hog prices, which would be needed to clear the market of surplus pork that would otherwise be exported. The pork industry would lose a total of $15 billion in the two-year scenario and just over $50 billion in the all-years scenario. “This study underscores the need for ASF preparedness by everyone in the U.S. pork industry,” says David Newman, National Pork Board President. “It’s why we continue to encourage producers to participate in the voluntary Secure Pork Supply Plan.” ********************************************************************************************** A decision on Holding the World Dairy Expo Coming on July 1 Staff at the World Dairy Expo in Madison, Wisconsin, are still in the process of planning for the event this year. However, a final decision hasn’t been made yet on whether it will take place. The staff members are keeping an eye on conditions surrounding COVID-19 and its potential impact on the show. While they are still moving forward with planning the event, future health declarations, and the well-being and safety of Expo exhibitors, attendees, and volunteers are of the utmost importance and will guide their future decision-making. Out of respect to the heightened economic hardships the industry faces, a final decision to hold or cancel the 2020 edition of the World Dairy Expo will be made by the executive committee on July 1. Whether they cancel the event or hold it as scheduled, the decision will be communicated extensively. World Dairy Expo says it’s proud to be the gathering place of a resilient, united, global dairy community, and looks forward to continuing this tradition in Madison, Wisconsin, for the 54th year, scheduled for September 29 – October 3 of this year.
| Rural Advocate News | Friday April 24, 2020 |
Washington Insider: USDA and Food Safety The Hill reported recently that USDA is facing growing pressure to ensure the safety of the nation's food supply during the coronavirus outbreak. The report cited a number of experts who believe that the food supply is safe now, but that this is a period of growing challenges for the USDA as food industry workers fall sick and inspectors scramble for limited resources. The report noted that USDA's Food Safety and Inspection Service has recalled only one product over the last two months. On Feb. 8, a product from Family Traditions Meat Company was recalled due to misbranding, it said – but focused on the fact that “there has been a sharp reduction in recalls during the period before April 10, when it recalled chicken bowls from Conagra Brands over possible foreign matter contamination and pork products from Jowett Farms for missing some inspections.” The report noted that recalls were “flowing in regularly before February,” with five in January, four in December, four in November and three in October. And, while there were no specific signs food safety has been compromised during the pandemic, they urged vigilance and “found the gap in recalls puzzling.” “I do think that it is unusual that there were no recalls during that time frame,” said Donald Schaffner, a professor of food microbiology at Rutgers University. "COVID-19 has been a distraction," Schaffner added, but he cautioned that the pandemic "has probably not directly impacted food safety yet." Benjamin Chapman, food safety extension specialist at North Carolina State University, agreed that the outbreak could be a “distraction” with people off work or at home and more resources being devoted to the immediate pandemic response. "Since COVID-19 is such a huge focus for everyone, not just the food industry, I can see how we all might be a bit distracted from the normal day-to-day operations of the system," Chapman said. "But I would say that in the short term the distractions are likely not leading to changes in food safety." Still, the lack of recalls comes at a troubling time as concerns about food safety grow, The Hill said. Those worries have gained attention in recent days with the closing of meat processing plants where workers have contracted the coronavirus. Pork processor Smithfield Foods closed two more plants, one in Cudahy, Wis., and one in Martin City, Mo., this week and a worker from its closed Sioux Falls, S.D., facility died. Two employees of Tyson Foods’s Columbus Junction, Iowa, pork processing plant have also died. The coronavirus will make it harder for USDA inspectors to continue their work even at operating processing plants, the experts said. As the coronavirus outbreak intensified in the U.S. in March, the agency pledged that it would "ensure that grading and inspection personnel are available." USDA officials wrote to stakeholders recently that it "remains committed to working closely with industry to fulfill our mission of ensuring the safety of the U.S. food supply and protecting agricultural health." Another food safety agency, the Food and Drug Administration has also seen its resources stretched with the outbreak and scaled back some routine inspection work to protect inspectors. USDA told The Hill that its Food Safety Inspection workers are on the front line, day in and day out, to make sure our food is safe.” The spotlight on the agency and its work likely will intensify, particularly if more food service workers fall ill, The Hill said--and it argued that experts had not sounded any specific alarms on the nearly two-month gap in recalls, noting the many factors go into determining food recalls. However, they acknowledged the challenges facing the USDA. Food recalls in the U.S. have become more common in recent years. The total number of recalls increased by 10 percent between 2013 and 2018, and there were 905 recalls in 2016. “Consumers have to make sure that they’re practicing safe food handling at home, safety experts say. They recommend washing their hands and separating fresh product from raw product, minimizing their risk as much as possible.” So, we will see. The decline in recalls is a statistic that USDA should examine closely since it could indicate growing pressures on the inspection process. And, given threats from the virus and its impacts, the decline in recalls is a development USDA should make sure consumers understand in this period of tension and uncertainty, Washington Insider believes.
| Rural Advocate News | Friday April 24, 2020 |
China Looking to Increase Stockpiles More reporting on China aiming to buy more crops for state reserves. China is looking to buy more than 30 million metric tons of crops for state stockpiles in a bid to avoid supply chain disruptions from COVID-19 and to meet its pledge buy more U.S. farm commodities, according to sources quoted by Reuters. This follows reports Wednesday from JC Intelligence on the planned purchases for state stockpiles which also made reference to current prices as a factor in the apparent decision. The country plans to add 20 million metric tons of corn, 10 mmt of soybeans and 1 mmt of cotton to state reserves, with the bulk of those purchases coming from the U.S. as China strives to meet the terms of the Phase One agreement with the U.S. The report also said the country would seek to add 1 mmt of sugar and 2 mmt of soyoil to reserves, but did not indicate the likely source for those products. No indication on timing of the buys was given, with the report saying that would “depend on how the market evolves.”
| Rural Advocate News | Friday April 24, 2020 |
USDA, CFTC Comment On Livestock Market Investigations The Commodity Futures Trading Commission (CFTC) Ag Advisory Committee meeting by teleconference Wednesday focused on COVID-19 impacts, with the livestock market situation also discussed. USDA Secretary Sonny Perdue addressed the meeting, reminding that USDA’s cattle market investigation now includes volatility linked to the COVID-19 pandemic. “As part of this ongoing investigation, [USDA’s] Packers and Stockyards division will determine if there's any evidence of price manipulation, collusion, restrictions on competition, or any unfair practices or unfair advantages,” Perdue commented. He said he would could not share any details of the ongoing investigation. But USDA Senior Advisor Dudley Hoskins later said that there was no deadline for the conclusion of the investigation. He noted Perdue has been “clear he does not anticipate putting any kind of fictional or manmade timelines on how far that investigation will go or how long it will last.” The CFTC’s Livestock Market Taskforce is also looking at the situation, and CFTC Chairman Heath Tarbert said the regulator is “putting all of our efforts into making sure that we understand during this period of immense volatility, exactly what's going on in our markets.” As part of the effort, “we are talking to the exchanges, we're talking to market participants, we're talking to the clearing houses, just to make sure that we get a sense of basically any indication that prices are moving in an uneconomic manner relative to the underlying commodity cash price,” he explained. But he also cautioned little public information is offered on the taskforce’s efforts unless the regulator opts to “take a concrete action on the enforcement side.” As for the surveillance effort, Tarbert said, “you should know that we are doing it, but we cannot reveal the details prematurely.”
| Rural Advocate News | Friday April 24, 2020 |
Friday Watch List Markets Friday starts with a report of March U.S. durable goods orders at 7:30 a.m. CDT, followed by an index of consumer sentiment at 9 a.m. USDA's monthly cattle on-feed report is due out at 2 p.m. CDT and a large drop in March placements is expected. Coronavirus statistics remain the primary market focus as we all continue to watch for signs of improvement. Weather forecasts, trade news and updates on the status of meat processing plants also get attention. Weather Showers and thunderstorms will cross the central Plains and western Midwest Friday, interrupting fieldwork and planting. Precipitation will be light to moderate, with locally heavy in eastern Iowa. Drier conditions are in store elsewhere. Eastern Midwest activity is interrupted by light to moderate rain. Temperatures will be seasonal to above normal in most areas, with hot conditions in southern Texas.
| Rural Advocate News | Thursday April 23, 2020 |
NCGA Analysis Shows $50 Per Acre Revenue Declines for Corn Due to COVID-19 An analysis released by the National Corn Growers Association shows cash corn prices have declined by 16 percent on average. Several regions are experiencing declines of more than 20 percent, since March 1, as a result of the COVID-19 pandemic. The analysis projects a $50 per acre revenue decline for the 2019 corn crop. NCGA commissioned the economic analysis, conducted by Dr. Gary Schnitkey of the University of Illinois, to better understand the economic impact of the global pandemic on the corn industry. Schnitkey writes in the study, “Corn will be one of the most impacted crops as its two largest uses – livestock feed and ethanol – are under pressure.” NCGA will use the data to create solutions to help corn farmers and their customers recover. The analysis was based on cash corn prices as of mid-April and estimated losses would likely increase through the rest of the marketing year. Further analysis is already underway for the 2020 crop year, with losses anticipated to be higher than those in 2019. ************************************************************************************ USDA Reports Record Enrollment in Key Farm Safety-Net Programs Producers signed a record 1.77 million contracts for the Department of Agriculture’s Agriculture Risk Coverage and Price Loss Coverage programs for the 2019 crop year. The signup total represents more than 107 percent of the total contracts signed compared with a five-year average. Farm Service Agency Administrator Richard Fordyce says farmers are using the programs to mitigate risks, and “recognize that ARC and PLC provide the financial protections they need to weather substantial drops in crop prices or revenues.” Producers interested in enrolling for 2020 should contact their FSA county office. Producers must enroll by June 30 and make their one-time update to PLC payment yields by September 30. FSA attributes the significant participation in the 2019 crop year ARC and PLC programs to increased producer interest in the programs under the 2018 Farm Bill. FSA says the growth also comes from an increase in eligible farms because of the selling and buying of farms and new opportunities for beginning farmers and military veterans with farms having ten or fewer base acres. ************************************************************************************ USDA Increases Monthly SNAP Benefits by 40 Percent Agriculture Secretary Sonny Perdue Wednesday announced emergency benefit increases have reached $2.0 billion per month for the Supplemental Nutrition Assistance Program. The benefits represent a 40 percent increase in overall monthly SNAP benefits, significantly increasing food purchasing power for American families during the COVID-19 pandemic. Currently, a household with two adults, three children, and no income can receive the maximum benefit of $768. However, due to reportable income and other factors, the average five-person household receives significantly less, $528. These emergency benefits would provide the average five-person household an additional $240 monthly in food purchasing power, bringing the average household up to the same benefit level as households already receiving the maximum. The Families First Coronavirus Response Act provided for the issuance of emergency allotments in response to COVID-19. Across the United States, emergency allotments total nearly $2 billion per month, which is in addition to approximately $4.5 billion in benefits already provided to SNAP households each month. ************************************************************************************ Bunge Selling 35 U.S. Grain Elevators to Japan-based Buyer Bunge announced this week the company is selling 35 grain elevators to Japan-based Zen-Noh Grain Corporation. The elevators are located along the Mississippi River. ZGC's affiliate, CGB Enterprises, Inc., will operate the acquired facilities through its wholly-owned subsidiary, Consolidated Grain and Barge Company. CGB currently operates more than 100 grain origination facilities in the United States. The company says it serves a vital role as a direct connection to the U.S. farmer by providing an array of services from buying, storing, selling and shipping crops, to financing and risk management. The acquisition, according to the company, contributes to its ability to adequately source a stable supply of grains, oilseeds and feed ingredients for Japan and other destinations by strengthening its origination across a broader footprint in the United States. Meanwhile, Bunge’s storage network will decrease, but the company says, “certain supply agreements" with ZGC will result in a "larger and stronger origination and distribution network." ************************************************************************************ Pork Board Develops Educational Resources for Parents Parents nationwide now have access to new ways to keep children learning and engaged during the coronavirus crisis, thanks to free materials developed in conjunction with the Pork Checkoff. With many working and learning from home during the global pandemic, parents are looking for ways to keep their students occupied and informed. Angie Krieger of Pork Checkoff, says, "We have a wealth of fun and educational resources parents can use to teach their children about food, nutrition, farming and the environment." Working with curriculum specialists at Young Minds Inspired, the Pork Checkoff created a series of educational activities that support healthy eating and teaches children about pork and sustainability. The Pork Checkoff has worked with Young Minds Inspired since 2008 to develop and approve standards-based content for classroom use. Just as new materials were about to be shared with classroom teachers this spring, the coronavirus pandemic altered those plans. With minor adjustments, the content was modified to fit the needs of parents now looking for educational materials. The lesson plans and activity information can be found at http://ymiclassroom.com. ************************************************************************************ Dairy Farmers of American Donating to Needy Families The Dairy Farmers of America cooperative is providing dairy products to needy families. The organization announced this week the launch of its Farmers Feeding Families Fund, which hopes to raise $500,000 for community food banks across the country. Initial seed money of $200,000 has already been raised through the Cooperative's DFA Cares Foundation. DFA is already holding events such as drive-by milk giveaways at schools and donating fluid milk directly to food banks. Randy Mooney, DFA board chairman, says, “we are proud of the role we play in feeding families, and in times like these when so many are struggling, we feel passionately about doing all we can to help.” As demand for food assistance rises with the COVID-19 outbreak, Feeding America, with its more than 200 affiliates across the country, has projected a $1.4 billion shortfall in the next six months alone. DFA has identified 30 communities across the country whose local food banks will receive funds to purchase needed dairy products.
| Rural Advocate News | Thursday April 23, 2020 |
Washington Insider: More Immigration Uncertainty President Donald Trump announced a new policy that halts the issuance of green cards for two months. The move stops short of a sweeping immigration ban but also includes hints regarding additional restrictions that could complicate planning for businesses and workers looking to rebound from the coronavirus. The new order will affect thousands of would-be immigrants seeking to move permanently to the U.S., Bloomberg says, and “further delays a green card process that is already notoriously cumbersome for those seeking to work in this country.” Temporary workers in agriculture and other fields are the country’s biggest source of immigration and will not be affected, the report says. Nevertheless, the president’s comments regarding an even more restrictive executive order now under consideration adds to the confusion over the outlook, Bloomberg thinks. Companies may prove less likely to seek and hire foreign workers or proceed with projects dependent on non-American labor, especially if they fear new restrictions from the White House. “It would be wrong and unjust for Americans laid off by the virus to be replaced by new immigrant labor flown in from abroad,” the president said at a White House briefing on Tuesday evening. “We must first take care of the American worker.” The president also described the new policy as “prohibiting immigration into our Country,” without alluding to its exemptions. Bloomberg explained the uncertainty regarding the order on the grounds that it was “still being drafted.” It is expected to contain exemptions and would not apply to health care or medical research professionals, Bloomberg said. Technology industry workers living in the U.S. on H-1B visas, however, would have to provide updated certifications to the government that they are not displacing American workers. Refugees and asylum seekers would not be affected by the order, nor would spouses and children of U.S. citizens or permanent residents. Still, the president hinted that additional restrictions could be on the horizon, particularly if the economy struggles to bounce back from the prolonged coronavirus shutdown. “We have a secondary order that, if I want to do that, we’ll make that determination,” the president said. He also said he could extend the green card ban if the economy hadn’t sufficiently improved within two months—since he has “determined that we cannot jump start the domestic economy if Americans are forced to compete against an artificially enlarged labor pool caused by the introduction of foreign workers.” He noted in his remarks that he has determined that the entry of most aliens as “permanent or temporary workers in the immediate term would have adverse impacts on the national interest.” The immediate practical effect of the order remains unclear, Bloomberg said. Immigration agencies and embassies have largely stopped processing visas, meaning many of those seeking to immigrate to or visit the U.S. cannot do so. Refugee admissions have been suspended since March 19 after the United Nations and International Organizations for Migration temporarily halted refugee travel. The U.S. suspension has been extended to May 15. The president’s Monday tweet apparently caught immigration officials off guard, Bloomberg thinks, and noted that he “looks to contain the health, economic and political fallout from the pandemic that has killed more than 42,000 Americans in an election year, while shuttering the economy whose strength had been the base of his campaign only two months ago.” National Security Advisor Robert O’Brien, told reporters on Tuesday at the White House that the suspension is “a temporary issue” but said he didn’t know how long it would last. Lawmakers had yet to receive any details from the administration as late as midday Tuesday, one Republican official told Bloomberg. Republican Senator Chuck Grassley of Iowa said he didn’t know if President Trump’s pause on for legal immigration makes sense. “We’ve been a welcoming nation and we need people,” he said. However, Republican Senator Ted Cruz of Texas welcomed the decision. “I think this is a reasonable short-term measure, a reasonable emergency measure,” Cruz said. So, we will see. The new policy has attracted intense scrutiny and will generate more as additional details emerge. Clearly, immigration is a hot, hot topic and the uncertainty regarding the new rules will be debated, along with the opaque process that appears to be in use, a fight producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Thursday April 23, 2020 |
NCBA Says They Have Not Asked For Beef Buys While the head of the National Cattlemen’s Beef Association (NCBA) says the group is thankful beef producers will be getting more than half of the COVID-19 relief funds from the USDA, NCBA head Colin Woodall told Brownfield Ag News the industry does not want anything for commodity purchases. “Given what we are seeing with the packing plants that have shut down or have scaled down we need to make sure all of that product is going directly to retail,” Woodhall said. “So, that is our preference right now. So, NCBA will not be asking for a beef buy by the U.S. government nor have we asked for a beef buy.”
| Rural Advocate News | Thursday April 23, 2020 |
Producers to Sen. Hoeven: USDA Calculations Key for COVID Aid North Dakota producers signaled that how USDA calculates the price losses relative to payments it will issue under the Coronavirus Food Assistance Program (CFAP) program will be key. Farmer made those views known in a call with Sen. John Hoeven, R-N.D., on Tuesday. USDA wants to get the aid out quickly, but Hoeven said he is pushing on the agency to make sure the assistance matches the impacts the sector has seen. Producers told Hoeven those calculations by USDA are key for livestock and crop farmers. Hoeven said his involvement will be to push USDA on the details as those will be a crucial part of the regulation that USDA will use to put the aid together and that may go to the Office of Management and Budget (OMB) yet this week. The payment limit set by USDA -- $125,000 per crop and a total of $250,000 per person or entity -- have been raised as a key issue that could dramatically impact the level of help that dairy producers and others may be able to receive via CFAP.
| Rural Advocate News | Thursday April 23, 2020 |
Thursday Watch List Markets As usual, Thursday morning begins with weekly grain export sales, U.S. jobless claims and an update of the U.S. Drought Monitor at 7:30 a.m. CDT, joined by a report of U.S. new home sales in March. Coronavirus statistics are still of interest, as are the latest weather forecasts and updates of meat processing operations. Weather Moderate rain is in store for the Ohio Valley Thursday, interrupting fieldwork. Light rain elsewhere in the eastern Midwest will bring some interruptions in activity. Farther south, strong to severe thunderstorms in the Mid-South and Deep South will hinder fieldwork, with some flooding possible. Drier conditions elsewhere will allow for progress, notably in the northwestern Midwest and Northern Plains.
| Rural Advocate News | Wednesday April 22, 2020 |
Agreement Reached on Expanding Coronavirus Aid, Ag Eligibility in EIDL Lawmakers reached an agreement Tuesday to allow agriculture to participate in the Small Business Administration’s Economic Injury Disaster Loan program. The agreement is part of a larger deal, a $484 billion coronavirus package to extend the Paycheck Protection Program. The agreement also includes funds for small lenders and community banks, funds for national coronavirus testing and funding for hospitals. The bill includes an additional $60 billion for the Economic Injury Disaster Loan program. Senator John Hoeven, a Republican from North Dakota, told the Hagstrom Report, “farmers and ranchers are working hard to continue providing our nation with food, fuel and fiber, and this is one way we can help support them during this pandemic.” The provision means ag businesses can now apply for low-interest loans through the program and may also qualify for the $10,000 emergency grants. To be eligible, ag businesses will have to show that they have been hurt by the economic downturn caused by coronavirus. ************************************************************************************ Farm Groups Defend Glyphosate Reregistration A coalition of commodity groups seeks to block a challenge that would toss out the Environmental Protection Agency's plans to reregister glyphosate. The group filed a joint motion to intervene on April 20 in the case to support EPA's decision. The Natural Resources Defense Council is challenging the reregistration approval. Glyphosate is one of the most widely used herbicides worldwide. Growers and others depend on it for effective weed control and to minimize tillage farming practices, reduce greenhouse gas emissions, and preserve more land for native habitats. EPA on January 22, published its interim decision for the 15-year registration review of glyphosate, as required by the Federal Insecticide, Fungicide and Rodenticide Act. It included a variety of determinations about glyphosate, including revision of requirements for drift management, off-target effects, herbicide resistance management practices, and a human health risk assessment in which EPA found glyphosate posed no significant cancer or non-cancer human health risks. The coalition of farm groups includes the American Farm Bureau Federation, American Soybean Association, National Corn Growers Association, and eight others. ************************************************************************************ Farmer Co-ops Urge Attention to Farmer Mental Health Issues The National Council of Farmer Cooperatives urges the Department of Agriculture to focus on the impact the COVID-19 pandemic has on farmers' mental health. In a letter to Agriculture Secretary Sonny Perdue this week, the organization says, "for some, mental health may become as or more important than financial health." Farmers have reached the point of decisions to destroy or abandon their produce, dump their milk, and even destroy livestock. The letter states, “The frustration of seeing the value of your hard work going for naught can compound feelings of depression.” The letter notes that USDA, together with the Department of Health and Human Services’ Federal Office of Rural Health Policy, has been active for several years to help producers struggling with farm stress. The organization says USDA could leverage this experience at this time to provide a lifeline to farmers and ranchers struggling with the impacts of this crisis. The letter suggests that USDA convey to producers that they are not alone, this is not their fault, and they will get through this pandemic and its impact on agriculture. ************************************************************************************ Senate Democrats Seek Production for Food Supply Chain Workers A group of 36 Democratic Senators led by U.S. Senator Debbie Stabenow from Michigan urges the Trump administration to protect essential workers in the food supply chain. There have been numerous reports of essential workers in meatpacking plants, processing facilities, farms, grocery stores, and markets falling ill from COVID-19. Some workers have reportedly felt pressured to go to work even when feeling sick. There are also serious concerns about the health of farmworkers who often work, live, and travel in close proximity, making social distancing very difficult. A letter to the Trump administration from the Senators states, “It is vital that we do everything we can to protect food supply workers.” The Senators say breakdowns in the food supply chain could have significant economic impacts for both consumers and agricultural producers. The Senators urged the White House and federal agencies to coordinate with state and local governments and the private sector to take aggressive action to protect essential workers and the food supply from further damage. ************************************************************************************ USDA to Host Virtual Career Fair in Kansas City The Department of Agriculture will hold a virtual job fair for positions at the Economic Research Service and the National Institute of Food and Agriculture in Kansas City, Missouri. USDA is partnering with the University of Missouri to host a joint Virtual Career Expo on April 28, 2020, building on an event last year that attracted more than 400 attendees. Both agencies relocated most of their operations to the Kansas City region last fall and are continuing to grow their workforces. Deputy Under Secretary Scott Hutchins says, “This is a unique time for our nation and USDA continues to build the ERS and NIFA workforce using innovative techniques.” The COVID-19 pandemic forced many event cancellations, or a pivot to virtual events, such as the virtual job fair. Representatives from ERS, NIFA, and the Office of Personnel and Management will conduct information sessions during the Virtual Expo about the agencies and available positions, how to apply for federal jobs and benefits of working for the federal government. ************************************************************************************ Lawmakers Seek Support for Local Media More than 200 lawmakers seek federal assistance for local news and media outlets suffering from the lack of advertising funds during the COVID-19 pandemic. The lawmakers say that in times of emergency and disaster, the public turns to their local media, and advertising plays an incredible role in funding those outlets. A letter to the Trump administration says the importance of advertising to the "sustainability of local broadcast stations and newspapers cannot be overstated." National Association of Farm Broadcasting President Rita Frazer says, "When local businesses hurt, local radio stations hurt," adding, "our members are feeling the pain, with local advertising dollars shifting and declining." The lawmakers urge the administration to review any resources provided by the CARES Act and other recent bills intended for advertising campaigns, and expedite those activities with local media outlets. The lawmakers also seek federal outreach through advertising of new programs, and incentives for recovering businesses to advertise with local media.
| Rural Advocate News | Wednesday April 22, 2020 |
Washington Insider: Administration to Defer Tariff Payments Bloomberg is reporting this week that, amid the intense debate over federal virus relief measures, the administration will allow “deferral of duty payments in hardship cases.” Larry Kudlow, White House economic adviser said that the U.S. will temporarily suspend certain tariff payments in an effort to help industries such as “retail” that are facing liquidity issues because of the coronavirus crisis. “In some cases the customs duties--the excise tax you pay on the import – will be lifted if there are hardship cases,” Kudlow said. “In particular, there’s a lot of concern about retailers and related supply chains getting into the United States.” The three-month deferral of payments, which was first debated inside the White House a month ago, only covers so-called most-favored nation tariffs and doesn’t apply to any of President Trump’s enforcement actions, including tariffs he’s imposed on roughly $360 billion in Chinese goods or steel and aluminum imports from around the globe, Bloomberg said. “It’s a significant action. We want to help folks, it’s a way of helping out certain industries,” Kudlow said, but added that it was “not an enormous action” and doesn’t change the president’s trade policies. Kudlow had noted earlier that a deferral for certain duty payments was ruled out because it was too complicated to administer. White House deliberations on whether to defer payments and for which tariffs would be reduced were influenced by “outside voices on both sides of the debate,” Bloomberg noted somewhat cryptically. Domestic manufacturers have argued for weeks that any relief for importers would create an unequal playing field at a time when industries in the U.S. are facing difficult times as well. “The administration should not have tried to hide this decision by announcing it on a Sunday evening,” said Thomas Conway, president of United Steelworkers International. “Instead, the president should have made the announcement himself, during the light of day, so he could explain why he would do something that runs so antithetical to his claimed priority to Buy American, Hire American.” Retail groups, on the other hand, said the action was helpful – but doesn’t go far enough to address the problem and ensure that jobs can be saved during this crisis. “While the deferral of select duty payments is helpful and warranted, the deferral of all duty payments for at least 180 days would do even more to assist retailers as they navigate this unprecedented pandemic,” said Brian Dodge, president of the Retail Industry Leaders Association. “Millions of jobs are on the line, and we urge the administration to consider further duty relief to help retailers put workers back on the payroll when this crisis abates.” Kudlow on Monday also conceded that the duties for imported goods are paid by American companies and not China, as President Trump often claims. “Yes, tariffs are paid by the companies importing, yes U.S. companies, with a minimum impact, frankly, on consumers.” He said the economic benefits of the phase-one trade deal between America and China “far outweigh” the economic cost of tariffs Trump has imposed. The recently announced shift in tariff payment policy has been under consideration for some time, the New York Times said recently. Also, tariff relief is supported by a number of groups, the NYT said. For example, in a statement last week, Myron Brilliant, the head of international affairs at the U.S. Chamber of Commerce, said tariff relief would provide some welcome breathing room for American businesses and consumers. “Liquidity has emerged as one of the top challenges for businesses of all sizes, and tariff relief would alleviate some of that strain.” However, groups that supported the administration’s levies from the beginning continue to insist that any removal would be ruinous for industries like steel that depend on the protection. So, we will see. The administration’s “get tough” trade policies continue to have both political supporters and opponents, but the large-scale economic interventions likely will lead to growing questions about policies that are accused of increasing consumer prices and dampening demand, debates producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Wednesday April 22, 2020 |
USDA’s Perdue to Address CFTC Meeting Wednesday The Commodity Futures Trading Commission (CFTC) will hold a public meeting today (April 22) via teleconference of its Agricultural Advisory Committee. The panel will hear from USDA Secretary Sonny Perdue during the session, which will focus primarily on the COVID-19 situation and the impact on ag markets. While noting the impact that the COVID-19 situation is having on agriculture, CFTC Chairman Heath Tarbert also said, “The CFTC’s Livestock Market Task Force is monitoring activity around major, market-moving events, and will continue engaging experts, regulators, and market participants. Ensuring our markets are working for American agriculture is critical to fulfilling the CFTC’s mission during these challenging times.”
| Rural Advocate News | Wednesday April 22, 2020 |
Final WOTUS Definition Published By EPA, US Army Corps The final definition of Waters of the U.S. (WOTUS) has now been published in the Federal Register and will become final June 20, 2020. However, lawsuits are expected to come with Earthjustice saying they will challenge the matter in court. “Trump’s EPA is taking advantage of a pandemic to covertly gut water safeguards. Under the cover of COVID-19, the Trump administration is giving extractive and polluting industries the power to dig up and destroy wetlands and to dump waste in streams, lakes, and wetlands all over the country,” said Earthjustice attorney Janette Brimmer. “We will see them in court.”
| Rural Advocate News | Wednesday April 22, 2020 |
Wednesday Watch List Markets Wednesday's main event will be the Energy Department's weekly inventories, include ethanol production and an estimate of last week's gasoline demand at 9:30 a.m. CDT. USDA's monthly cold storage report is at 2 p.m. CDT. The latest weather forecasts, updates of meat processing plants and coronavirus statistics will round out the rest of Wednesday's market interests. Weather Showers and thunderstorms will cross the Southern Plains and expand into the Mississippi Valley and Delta Wednesday. The rain will disrupt fieldwork and may cause flash flooding. We’ll also see light rain in the Northwest with dry conditions elsewhere. Meanwhile, cold conditions in the Ohio Valley May bring freeze damage.
| Rural Advocate News | Tuesday April 21, 2020 |
Lawmakers Seek Rural COVID-19 Task Force A group of lawmakers wants the Trump administration to create a Rural COVID-19 Task Force. Led by Representative Antonio Delgado, a New York Democrat, and Senator Amy Klobuchar, a Minnesota Democrat, the group penned a letter to Agriculture Secretary Sonny Perdue. Klobuchar says the administration needs to take immediate action "to make sure we're getting our rural communities the resources they need to prepare and address the growing challenges" presented by COVID-19. The lawmakers say the gradual spread of COVID-19 to rural areas has led many to misjudge both its severity and rural America’s capacity to deal with it. Rural areas are “less equipped to handle the consequences” of the virus and need additional help. The lawmakers say the task force would help identify rural challenges, develop strategies and policy recommendations, assemble a guide of available Federal programs and resources, consult with the Department and Congressional Committees, and provide oversight on the distribution of funding. ************************************************************************************ Ethanol Industry Calls on USDA For Support Growth Energy offered thanks to four governors, who sent a letter urging Agriculture Secretary Sonny Perdue to allocate additional resources under the COVID-19 relief package to the biofuels industry. An initial tranche of aid, announced Friday by USDA, included welcome funding for farmers and ranchers, but no direct relief for U.S. biofuel producers. Growth Energy CEO Emily Skor says, “We urge lawmakers and USDA to take immediate, additional steps that are still needed to keep our plants open.” Signed by Governors Kim Reynolds of Iowa, Tim Walz of Minnesota, Pete Ricketts of Nebraska, and Kristi Noem of South Dakota, Growth Energy says the letter also offered a powerful rebuke against recent oil-backed efforts to waive blending requirements under the Renewable Fuel Standard for petroleum refineries. They note, “Using this global pandemic as an excuse to undercut the RFS is not just illegal, it would also sever the economic lifeline that renewable fuels provide for farmers, workers and rural communities across the Midwest.” ************************************************************************************ Farmers Express Stress and Anxiety in Survey on COVID-19 Stress levels are high among America's soybean farmers, so much so that the terms "stress," "anxiety," and "concerns over mental health" were used dozens of times in an informal survey. The survey, released this week, was an initiative of the ASA COVID-19 Task Force, a 12-person group formed in March. ASA sent the survey to approximately 140 farmer leaders serving on the boards of soybean industry groups, with 60 percent of those persons participating. Ryan Findlay, CEO of ASA, responded, "We were struck immediately by how many respondents talked openly about the high levels of stress and anxiety on their farms.” An overwhelming majority, 82 percent, indicated they are practicing social distancing, washing hands, and other practices to minimize exposure, with very few, three percent, indicating they are not making any changes. 73 percent of respondents were moderately or extremely concerned about their farm being impacted by COVID-19. 44 percent said the pandemic has already affected their farms, and another 33 percent feel trouble is likely on its way. ************************************************************************************ Baldwin Seeks Block Grants to Help Food Supply Chain U.S. Senator Tammy Baldwin wants the federal government to support farmers during the global COVID-19 pandemic through block grants. The Wisconsin Democrat is calling for the federal government to quickly direct resources to states and local communities so they can work with food and agriculture stakeholders to stabilize the food supply chain, address serious threats to worker safety, and avoid severe economic losses in rural Wisconsin. Baldwin is urging the administration to create Food and Agriculture Emergency Block Grants for States to help agriculture and food processing businesses solve coronavirus-related challenges. Specifically, Baldwin notes the emergency funding would help businesses reprocess food-service scale products to family-sized packages, connect businesses with new customers, prevent the waste of food, address shifting workforce needs, ensure workers have safety protections, and respond to changing consumer demand during this public health crisis. Baldwin writes, “The economic losses predicted from these impacts are staggering, and if we respond rapidly, we can help to reduce the worst losses.” ************************************************************************************ Farm lending Slows in First Quarter 2020 The Kansas City Federal Reserve Bank reports a slowdown of farm lending in the first quarter of the year. Before the emergence of global economic developments related to COVID-19, growth in farm lending continued to show signs of slowing. According to data collected in early February, agricultural lending activity showed further signs of slowing in the first quarter, despite an increase in the volume of operating loans. The total volume of non-real estate loans remained above the historical average, but were about ten percent lower than a year ago. Despite a decline in most types of lending, loans for operating expenses increased nearly ten percent. The overall decline was driven by a drop of about 30 percent in both livestock loans and loans for miscellaneous purposes. The KC Fed says demand for farm loans may increase as economic disruptions associated with the COVID-19 pandemic could put additional pressure on farm finances. ************************************************************************************ Fuel Price Plunge Continues The national average price of gasoline dropped another five cents over the last week. Fuel prices have declined for eight straight weeks amid the COVID-19 pandemic and a flooded oil market. GasBuddy reports the national average price of gasoline at $1.78 per gallon, while the national average price of diesel fell 2.9 cents to $2.49 per gallon. GasBuddy’s Patrick DeHaan says, “unprecedented demand destruction has been dismantling expensive gas prices everywhere.” Data from the Energy Information Administration last Wednesday highlighted another blowout week for oil and refined products inventories. Crude oil inventories skyrocketed 19.2 million barrels- the single largest weekly rise, ever, while gasoline jumped nearly five million barrels, and distillate inventories jumped 6.3 million barrels. Demand for gasoline remained anemic at 5.08 million barrels per day, while GasBuddy demand figures put the loss around 55-70 percent by state as millions are staying at home and some now without work. Refineries also pulled back, utilizing just 69.1 percent of their capacity at a time of year they’re typically north of 90-95 percent.
| Rural Advocate News | Tuesday April 21, 2020 |
Washington Insider: The Food Chain’s Weakest Link Livestock slaughterhouses are under scrutiny now, accused by some critics of being the food chain’s weakest link, despite being “sleek refrigerated assembly lines, staffed mostly by unionized workers under constant oversight of government inspectors,” The New York Times says this week. In large part, the reason is that they have become “hot spots” for the coronavirus pandemic and are “posing a serious challenge to meat production.” After decades of consolidation, there are about 800 federally inspected slaughterhouses in the U.S. and a relatively small number of them account for most production. For example, in the cattle industry, “a little more than 50 plants are responsible for as much as 98% of slaughtering and processing in the U.S.,” according to Cassandra Fish, a beef analyst. The Times notes that shutting down one plant, even for a few weeks backs up hog and beef production across the country, crushes prices paid to farmers and eventually can “lead to months of meat shortages.” Ripple effects of the virus are now being felt across the entire meat supply chain, all the way to grocery store freezers, NYT says. More than a dozen beef, pork and chicken processing plants have closed or are running at greatly reduced speeds because of the pandemic. By last week, the number of cattle slaughtered dropped nearly 22% from the same period a year ago, while hog slaughter was down 6%, USDA said. The declines have caused a “major disruption, leaving many ranchers with nowhere to send their animals,” the report says. Also, even as one prominent meat executive warned that the nation was “perilously close” to a meat shortage, state and federal regulators have been sending mixed signals about how to deal with the crisis. In South Dakota, Gov. Kristi Noem requested publicly that Smithfield Foods close its pork facility in Sioux Falls after testing revealed that it accounted for nearly half the coronavirus cases in the city and the surrounding county. At the same time, federal officials had been repeatedly urging meat producers to find ways to keep their plants running because of their importance to the food supply, the Times said. By Thursday, tests had revealed that the Sioux Falls pork plant was the nation’s single largest “hot spot,” with about 19% of its 3,700 employees testing positive for the virus. The hospitalization rate among the workers has been relatively low because they tend to be younger, said Dr. David Basel, a vice president at the Avera Medical Group in Sioux Falls. Dr. Basel praised Smithfield for encouraging its employees to get tested. Doctors made instructional videos in Nepalese and Spanish and tracked down and tested workers who had been in close contact with infected employees. Still, the high infection rate raised questions about whether enough had been done to carry out social-distancing protocols and use protective gear. Last Thursday, officials from the Centers for Disease Control and Prevention toured the Sioux Falls plant, a facility that produces 5% of the nation’s pork. The agency is expected to release recommendations in the next few days on how to prevent another outbreak when the plant reopens. Before the plant closed, the company had provided employees with face shields and masks and installed plexiglass barriers in some areas to separate employees. Still, the Times thinks it may be difficult for any meat plant to accommodate social distancing and remain profitable, “It is not going to be easy to get workers six feet apart,” said Dr. William Schaffner, a professor of infectious diseases at Vanderbilt University’s medical school. Officials in the meat industry also have argued that South Dakota’s decision to not issue a stay-at-home order may be contributing to the outbreak because it has left relatives and neighbors of plant employees free to mingle. South Dakota officials have said residents should exercise “personal responsibility” and practice social distancing. “Everybody wants to test meatpacking employees but nobody is testing the communities around them to show what’s the baseline,” said Steve Stouffer, the president of the fresh meats division at Tyson Foods. “And until we know the baselines, my question has always been: Are we the cause or are we just the victim of our surroundings?” In some places where the company operates, Stouffer said, it has faced pressure to “shut down at all costs.” “It’s very frustrating,” he said. “We’ve been tried and convicted already in certain spaces.” Large numbers of employees have become infected in other businesses where people work close together, like grocery stores and e-commerce warehouses. But the pandemic has caused more serious disruption in the meat industry, where decades of consolidation have given outsize importance to a relatively small number of plants, the Times said. “When you get to this kind of size, it increases risk,” said Ben Lilliston, who helps run the Institute for Agriculture and Trade Policy, a farm advocacy group. “When something goes wrong in a really big plant like this, you have a really big problem. These are vulnerable systems.” So, we will see. The meat industry is fundamental to the economy and to the ag sector, but the health concerns are real and formidable—and the ongoing debate should be watched closely by producers as it intensifies, Washington Insider believes.
| Rural Advocate News | Tuesday April 21, 2020 |
US, Brazil Agree on Accelerating Work on Trade High-level representatives from the Office of the U.S. Trade Representative (USTR) and from Brazil’s Ministries of Foreign Affairs, Economy, and Agriculture discussed the implementation of an ambitious economic and trade agenda between Brazil and the United States, according to a statement from USTR. “Both countries agreed to accelerate their ongoing trade dialogue under the Brazil-U.S. Commission on Economic and Trade Relations (ATEC) with a view to concluding in 2020 an agreement on trade rules and transparency, including trade facilitation and good regulatory practices,” USTR said. “They also agreed to engage in domestic consultations, consistent with each country’s domestic procedures, to solicit input on how best to expand trade and develop the bilateral economic relationship.” USTR said that the ATEC Commission will remain the route for further engagement, “through frequent contacts and meetings, in order to advance in the short-term agenda as well as in the preparatory work towards a deeper partnership.”
| Rural Advocate News | Tuesday April 21, 2020 |
USDA Unveils Ag Aid Package But Some Sectors Not Pleased The $19 billion in ag aid announced by USDA late Friday includes $16 billion in payments to producers and $3 billion for the purchase of food products by USDA. Questions have already come relative to pay caps on the aid, $125,000 per commodity or $250,000 per person. Many believe that dairy producers will quickly run up against those limits. The National Pork Producers Council (NPPC) welcomed the aid, but warned it was not enough for the sector. There was no help announced for the ethanol sector. The Renewable Fuels Association (RFA) also complained they got no assistance in the effort. “While we appreciate that USDA’s new program provides needed assistance to the nation’s farmers and ranchers, it is unfortunate and disappointing that the 350,000 workers supported by America’s ethanol industry were left behind,” said RFA President Geoff Cooper. “USDA missed a crucial opportunity to lend a helping hand to an industry that is suffering the worst economic crisis in its history. Roughly half of the ethanol industry is shut down today, as fuel demand has collapsed in response to COVID-19. Corn demand and prices have plummeted as plants across the country are idling. Jobs are being lost, grain markets are being ravaged, rural communities are being destabilized, and the long-term future of homegrown renewable fuels hangs in the balance.”
| Rural Advocate News | Tuesday April 21, 2020 |
Tuesday Watch List Markets There are no official reports on Tuesday's docket. Traders recent interests are largely the same and include coronavirus statistics and any news of increased testing or promising treatments. The latest weather forecasts, export news and news on the status of meat processing plants are also topics of high interest. Weather Dry and mild conditions are in store for almost all major crop areas Tuesday. This combination is favorable for fieldwork and planting. Precipitation will be confined to scattered light rain showers in the southwestern Plains and extreme eastern Midwest.
| Rural Advocate News | Monday April 20, 2020 |
USDA Announces Coronavirus Food Assistance Program Agriculture Secretary Sonny Perdue announced the Coronavirus Food Assistance Program Friday evening. The $19 billion relief program will provide support to farmers and ranchers, and the food supply chain, to ensure “every American continues to receive and have access to the food they need.” CFAP will use the funding and authorities provided in the CARES Act, among other funding streams. The program includes $16 billion in direct support based on actual losses for farmers and ranchers. The program will assist producers with additional adjustment and marketing costs resulting from lost demand and short-term oversupply for the 2020 marketing year. USDA will also partner with regional and local distributors, whose workforce has been significantly impacted by the closure of food service businesses, to purchase $3 billion in fresh produce, dairy and meat. USDA will begin with the procurement of an estimated $100 million per month in fresh fruits and vegetables, $100 million per month in a variety of dairy products, and $100 million per month in meat products. The relief package does not include biofuels, a sector facing plant shutdowns amid low fuel demand. Further details regarding eligibility, rates and other implementation will be released at a later date by USDA. Agriculture Groups Respond: The American Farm Bureau Federation applauds the economic aid package. AFBF Federation President Zippy Duvall says the program will “help keep food on Americans’ tables by providing a lifeline to farm families that were already hit by trade wars and severe weather.” The National Farmers Union says the relief cannot come soon enough. NFU President Rob Larew recently urged Secretary Perdue in a letter to “swiftly and efficiently implement assistance and distribute resources.” Larew expressed appreciation for the agency’s efforts and reiterated the importance of dividing aid fairly and establishing longer-term solutions to market challenges. National Cattlemen’s Beef Association President Marty Smith welcomed the aid package, saying cattle producers “desperately need help during this national emergency.” A study commissioned by NCBA estimated that cow-calf producers stand to lose $8.1 billion as a result of the COVID-19 crisis, while the stocker/backgrounder sector losses will reach $2.5 billion and feedlot losses will total $3.0 billions a result of COVID-19. And, Senate Agriculture Committee Chairman Pat Roberts, a Kansas Republican, says, “Delivering this much needed relief expediently and efficiently will help producers manage their operations, as well as put food on the tables of folks who need it most.” However, for pork producers, the aid may not be enough. National Pork Producers Council President Howard "A.V." Roth says, “We fear the lifeline so desperately needed will fall short of what is truly needed.” While the direct payments to hog farmers will offset some losses for some farmers, Roth says “they are not sufficient to sustain the varied market participants.” ********************************************************************************************** FDA Changes Course on Hand Sanitizer Production at Ethanol Plants Just a few weeks after appearing to give the go-ahead, the Food and Drug Administration reversed course on ethanol plants manufacturing hand sanitizer. An Agri-Pulse report says many of the nation’s ethanol plants spent a lot of money to make changes to their machinery that would allow them to produce hand sanitizer, a valuable commodity to have during the COVID-19 outbreak. Just weeks later, the FDA reversed its initial guidance that relaxed alcohol regulations for hand sanitizer production. FDA said in its new policy guidelines that “because of the potential for the presence of potentially harmful impurities during the processing approach, fuel or technical grade ethanol should only be used if it meets the appropriate guidelines.” Geoff Cooper, President and CEO of the Renewable Fuels Association, tells Agri-Pulse that the new guidance contradicts language that was published in late March. “It’s just a few weeks later and FDA is changing the rules midstream and we don’t understand why,” Cooper says. “We haven’t heard of any issues or concerns from any of the customers or buyers of this alcohol.” ********************************************************************************************** Smithfield Closes two Additional Plants Smithfield Foods announced late last week it’s closing plants in Wisconsin and Missouri because of the coronavirus pandemic. The plant in Wisconsin will be closed for two weeks while the Missouri facility is closed indefinitely. An Associated Press report says the Missouri plant gets its raw materials from the plant in Sioux Falls, South Dakota, which is also closed. Smithfield recently reported more than 500 infections in plant workers, as well as another 126 infections in people connected to them. A small number of workers in both Wisconsin and Missouri have tested positive for coronavirus. Workers in the Missouri plant told the AP that between six and nine employees, including managers, contracted coronavirus. Union workers were told the Missouri plant will be back in operation by April 30. Missouri employees will still get their full 40-hour pay under their collective bargaining agreement. Union officials in Wisconsin had raised concerns that the company wasn’t doing enough to protect them from the COVID-19 outbreak, sending a letter to the company’s Human Resources Department. ********************************************************************************************** Wisconsin Rep Introduces the Family Farm Rescue Plan Wisconsin Democratic Representative Ron Kind introduced his Family Farm Rescue Plan, which focuses on five steps the administration can take to support family farmers during the pandemic. The Third District Congressman points out that the COVID-19 pandemic threatens the livelihood of Wisconsin farmers, as well as producers across the country. In his home state, dairy farmers are being forced to dispose of thousands of gallons of fresh milk every day due to a significant drop in demand for dairy products. The actions include purchasing excess food and delivering it to food banks, ensuring all farmers are eligible for all small business relief programs, reopening the Dairy Margin Coverage Program, and ending the trade war while implementing USMCA. “Family farms are the backbone of our economy,” Kind says. “These are decisive actions the administration can take that don’t require the creation of new programs, legislation, or appropriation.” Kind points out that Wisconsin has led the nation in farm bankruptcies with an average of two farms closing per day. “The administration just has to decide whether or not to support our family farmers,” he adds. ********************************************************************************************** NBB Says No to Waiving 2020 RFS Volumes The National Biodiesel Board strongly opposes petitions from five state governors to waive 2020 Renewable Fuels Standard Volumes. The petitions were submitted by governors of Louisiana, Texas, Utah, Oklahoma, and Wyoming. The NBB says a waiver of the RFS volumes set more than a year in advance would do severe damage to the biodiesel industry. Texas and Louisiana are two of the top states in producing biodiesel and renewable diesel. An RFS waiver would hurt tens of thousands of workers in those two states alone. Kurt Kovarik, Vice President of Federal Affairs, says, “NBB and its members condemn the oil industry’s attempt to use the current national emergency as an excuse to undermine the RFS. The waiver sought by the oil state governors would devastate renewable fuel producers, cost essential critical infrastructure jobs in multiple states, reduce incomes for soybean farmers, and lead to dirtier air and higher carbon emissions.” Kovarik says the Environmental Protection Agency long ago established that waiver petitions must demonstrate that the RFS is the direct cause of severe economic harm, and federal courts have upheld that interpretation. “The oil industry’s current challenges stem from COVID-19 impact, not the RFS,” Kovarik adds. ********************************************************************************************** U.S. Cattlemen Release Economic Impact Estimate of COVID-19 on Beef The United States Cattlemen’s Association released its full economic impact report of the COVID-19 pandemic on the U.S. cattle industry. The report was put together by Brett Crosby of Custom Ag Solutions and Beef Basis Dot Com. When compiling the numbers, they used existing market data and futures market data, coming up with the total actual and future impact forecast of $14.6 billion. The analysis focused on three primary sectors of the cattle production chain, which are feedlot, backgrounding, and cow/calf. “The impact of the COVID-19 pandemic on the U.S. cattle industry cannot be overstated,” says USCA President Brooke Miller. “This report highlights just how severe those losses will be. The report breaks out the steer and heifer price forecast, differentiates between spring and fall calves, and values stocker calves by marketing date rather than weight to account for the effect on operations that run grass calves and market in August.” USCA’s COVID-19 Producer Task Force has spent the past month working with Congress and the administration on developing temporary, short-term relief for cattle producers experiencing losses related to the current coronavirus outbreak. ********************************************************************************************** Tractor Sales Drop 16 Percent in March The Association of Equipment Manufacturer’s monthly Flash Report didn’t have good news when it came to March tractor sales. The overall sale of all tractors dropped 16 percent in March when compared to March of 2019. For the year, a total of 41,237 tractors were sold in 2020, compared to a total of more than 44,600 sold last year. During March, two-wheel drive smaller tractors with engines under 40 horsepower were down 16 percent from last year. Sales of 40 and under 100-horsepower tractors were 15 percent lower than a year ago. Sales of two-wheel drive 100-plus horsepower tractors dropped 18 percent, while four-wheel drive tractor sales were down 17 percent from a year ago in March. Looking at 2020 total sales, the drop isn’t quite as steep as the March numbers, but still lower than the first three months of 2019. Combine sales were also down 12 percent in March of 2020 compared to last year at the same time. Sales of combines for the year totaled 800 in 2020, compared to a total of 977 sold in 2019, which is an 18 percent drop.
| Rural Advocate News | Monday April 20, 2020 |
Washington Insider: Additional Farmer Aid Announced Press reports this week indicate that the administration will provide a $19 billion economic rescue package for farmers and ranchers. The program will include cash payments as well as purchases of products to be redistributed to food banks. The report noted that the president counts farmers and rural voters among his most reliable supporters and it indicated that he directed ag secretary Sonny Perdue to “speed assistance to the agriculture sector as producers increasingly bleed profits and start dumping goods like milk and fresh produce.” Support from the industry could be crucial to the president’s reelection hopes this November in key Midwestern swing states like Wisconsin and Michigan, the report said. However, it also noted that “influential” sectors, including producers of biofuels like ethanol, are frustrated that they were excluded from the program. The current plan is the latest in a long string of recent ad hoc relief efforts for the agricultural economy. POLITICO says that the administration is “pulling out the stops to bail out farmers and ranchers stung by his own trade war and biofuel policies, in addition to long-term economic headwinds.” “The program will include direct payments to farmers as well as mass purchases of dairy, meat and agricultural produce in an effort to get that food to the people in need, the President said during a White House press briefing. Secretary Perdue said at the briefing that the direct aid to farmers will total $16 billion while the department will buy $3 billion in surplus food to give to food banks and other organizations. Sen. John Hoeven, R-N.D., chairman of the Senate Appropriations panel that oversees USDA spending, released details about how the direct aid would be divided among commodity sectors, with the majority share going to cattle, hog and dairy producers. USDA is financing the payments through a combination of the new spending authority from Congress included in the stimulus package and existing funds. The President said an additional $14 billion in aid would be available in July. Some commodity groups have felt burned in the past by the department’s aid efforts, POLITICO said. It cited corn grower complaints in 2018 about a trade bailout that paid them only one penny per bushel, while other sectors were left out of the program entirely. On Friday, the National Pork Producers Council said hog producers’ slice of the package will “fall short of what is truly needed—and that while the direct payments to hog farmers will offset some losses for some farmers, they are not sufficient to sustain the various market participants, including those who own hogs as well as thousands of contract growers who care for pigs,” NPPC President Howard A.V. Roth said. The Renewable Fuels Association said USDA “missed a crucial opportunity” to help biofuel producers in crisis as drivers stay off the roads and gasoline consumption plummets. The group said it’s “unfortunate and disappointing that the 350,000 workers supported by America’s ethanol industry were left behind.” Perdue said USDA wasn’t given enough money by Congress to fully address all the farmers in need. “The demand from all the sectors was even more than we could accommodate at this time,” he said. As for the commodity purchases, the department said it will start by procuring about $100 million per month each of meat, dairy and fresh produce. Participating distributors and wholesalers will then send pre-approved boxes of the goods to food banks, faith-based organizations, community groups and other nonprofits, USDA said. Farmers also say they have struggled to access separate pieces of the $2 trillion stimulus package, including forgivable small business loans aimed at helping employers keep their workers on the payroll. Congress last month authorized USDA to spend more than $23 billion to boost hard-hit sectors including livestock and dairy producers, specialty crop growers and producers who sell to local food systems like farmers markets. Some of those sectors have been struggling for years from trade headwinds, labor shortages, low commodity prices and the rapid consolidation in agriculture. So, we will see. Managing broad subsidy programs across sectors as diverse as agriculture can be thankless, but USDA has considerable experience and a number of well-honed tools to use. Such efforts tend to be hard to balance, and to create issues that should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday April 20, 2020 |
USDA Continues To Insist US Food Supply Is Plentiful USDA officials from Secretary Sonny Perdue on down have continued to insist there is no shortage of food in the country despite shoppers seeing empty store shelves in grocery stores. “We have sufficient quantities to not only feed our country but maintain robust exports even in the face of the COVID-19 pandemic,” said USDA Chief Economist Rob Johansson in a blog post. Pointing to forecasts from USDA’s WASDE and data on supplies in cold storage, Johansson said the figures show an “adequate domestic supply of meat, eggs and dairy products to meet immediate demand.” Noting that meat packing plans are considered essential industry infrastructure, Johansson said, “according to the Food Safety and Inspection Service (FSIS), the USDA agency responsible for regulating meat processors, closures of facilities regulated by the agency due to the disease outbreak have been limited, and temporary. Similarly, wheat and rice mills, which generally are not labor-intensive operations, have not had any significant disruptions.” He acknowledged there is less certainty on the import side which the U.S. relies on for about 15% of total food consumption. While shortages in supplies from countries hit by COVID-19 could cause shortages and higher prices here, Johansson said, “industry and news reports on trade flows suggest that even countries heavily affected by COVID-19 spread, continue to ship food products and that there are no immediate risks of massive disruptions in the global supply chain.” The rise in demand at the retail (grocery) level has led to some shortages, but he noted that “over the next few weeks, as retailers restock their shelves and demand from overstocked consumers decline, we will see fewer empty shelves and prices should stabilize or even decline.” But he concluded the situation is one for steady to lower prices ahead. “So overall, the supply and demand factors at play point to stable if not lower market prices in the next few weeks,” Johansson said. As for uncertainties, he noted that consumer demand trends and the response by farmers and companies to the changing market conditions remain a source of uncertainty.
| Rural Advocate News | Monday April 20, 2020 |
Some Tweaks To Bird Flu Responses By Some Countries USDA’s Food Safety and Inspection Service (FSIS) has indicated some US trading partners have adjusted their response to USDA reporting a positive find of highly pathogenic avian influenza (HPAI) in a commercial turkey flock in South Carolina. Ukraine shifted from their blanket ban on imports of all US poultry to now restrict poultry and poultry meat products originating from the rest of the U.S. (other than South Carolina) if they were slaughtered on or after April 14, 2020, unless they are heat-treated. South Korea said its trade ban applies to product shipped from South Carolina on or after April 10, 2020, regardless of the production data. As for the European Union, indications are the situation there is the subject to a final agreement on the exact regionalization of shipments from the U.S., according to contacts. US Chief Ag Negotiator Gregg Doud told Pro Farmer the situation remains under discussion
| Rural Advocate News | Monday April 20, 2020 |
Monday Watch List Markets Back from the weekend, traders will keep watching coronavirus statistics for signs of peaking -- numbers that have not been confirmed yet. The latest weather forecasts, export news and any news on how meat processing plants are functioning will be of interest. USDA's weekly report of grain inspections is at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Weather Dry conditions will dominate the scene across major crop areas Monday, allowing for fieldwork and planting progress. Temperatures will be seasonal to above normal. Portions of the Plains and Midwest will also see strong winds during the day.
| Rural Advocate News | Friday April 17, 2020 |
Coronavirus Impact will likely Limit China’s Phase One purchases Two experts on the bilateral relationship between the U.S. and China say the impact of the coronavirus on the Chinese economy doesn’t bode well for the Phase One Trade Deal. They tell the South China Morning Post that COVID-19 has likely rendered the pact between the world’s two largest economies “stillborn.” The economic impact will only add to pressure on Beijing to reform its domestic economy. The Post says China had high levels of debt before the virus outbreak, plus, the private sector struggles to regain momentum will likely put a damper on consumption. Rhodium (ROW-dee-uhm) Group founder Daniel Rosen and former Australian Prime Minister Kevin Rudd both say consumption will be limited to the point that it will be almost impossible for Beijing to fulfill its buying commitments. “The extraordinary stimulus that got China out of the financial crisis in 2008-2009, which they were applauded for, is simply not an option today,” Rosen says. “The easy credit given to support the country’s state-owned enterprises in recent years is too high.” Rudd says the Chinese government won’t do another stimulus strategy like the last one, even though the need is much greater.” The negative assessment runs counter to the expectations of President Trump, who says he’s confident China will follow through on its obligations. ********************************************************************************************** Refiners in Five States Ask EPA for RFS Waiver The governors of five oil-patch states are asking the Environmental Protection Agency to waive obligations under the Renewable Fuels Standard for refiners due to COVID-19. Governors from Texas, Utah, Oklahoma, Wyoming, and Louisiana sent a letter to the EPA earlier this week. They claim refiners in their states face financial hardship because of the oil-market disruptions caused by economic shutdowns around the world. They also point out that prices for Renewable Identification Numbers have tripled, further compounding a tough situation. However, Emily Skor, CEO of Growth Energy, calls this an offensive attempt by refiners to steal markets from struggling biofuel producers and farmers. “Any move to unravel the RFS now would dim any hopes of economic recovery in rural America, where so many in the U.S. biofuel industry have been impacted by furloughs and plant closures, all while millions of farmers struggle to stay afloat,” she says. “We’ve seen the courts reject his kind of abuse before.” She also points out that even the oil companies themselves admit that biofuel credits don’t impose a real cost on refiners. “We see this as a non-starter,” Skor adds. ********************************************************************************************** DHS, USDA Take Action on Farm Labor Supply The Department of Homeland Security, with support from USDA, announced a temporary final rule that would make changes to some H-2A Program requirements. A USDA release says the changes are designed to help U.S. agricultural employers find and maintain a steady supply of labor, protect the nation’s food supply chain, and lower the impact of COVID-19. At the same time, USDA says the temporary changes won’t weaken or eliminate protections for U.S. workers. Under the temporary rule, an H-2A petitioner with a valid temporary certification, who is concerned that workers won’t be able to enter the country due to COVID-19 travel restrictions, can start employing certain foreign workers who are currently in H-2A status in the U.S. immediately, as soon as the U.S. Citizenship and Immigration Services receives the H-2A petition. To take advantage of the limited-time change in requirements, the worker seeking to change employers must already be in the U.S. and in valid H-2A status. Also, valid H-2A workers are being allowed to stay beyond the three-year maximum allowable period in the U.S. Employers who are worried about finding an adequate supply of legal labor who were previously authorized to work for the employer as H-2A workers, should take advantage of the limited opportunity. The Citizenship and Immigration Service also says it’s never okay to hire illegal aliens to work on your farm or in your ag-related businesses. ********************************************************************************************** Farmers, Ag Industry Groups Scrambling for Aid The Small Business Administration has been slow to approve many agricultural banks under the new Paycheck Protection Program. Politico says that the program has been overwhelmed with applications and is expected to run out of its initial $350 billion as soon as this week. “There’s a lot of farmers out there trying to line up for the funding,” says Todd Van Hoose, President of the Farm Credit Council. “By the time they get there, the money will likely be gone.” The Paycheck Protection loans weren’t originally designed for agriculture, but they could be valuable for the hard-hit segments that have larger workforces, such as dairy farmers and specialty crop growers. Van Hoose says farm creditors are in for a “heck of a task” because they have virtually no experience working with the Small Business Administration. While many businesses are focused on getting direct payments or loans, another avenue of aid will likely be commodity purchases. Ag Secretary Sonny Perdue did confirm on Wednesday that USDA will buy commodities like dairy and meat to help combat food waste and stock the nation’s food banks. “We want to purchase as much of this milk, hams and pork products, as well as other proteins, and then move them into our nation’s food banks, as well as even into international humanitarian aid,” Perdue says. ********************************************************************************************** Farm Income Drop Could Top $20 Billion A new economic analysis says crop and livestock farmers are in for much lower incomes in 2020. A DTN report says crop farmers are projected to see an $11.85 billion in revenue during 2020, while livestock farmers are projected to drop a combined $20.24 billion in receipts this year. Early analysis from the University of Missouri’s Food and Agricultural Policy Research Institute is showing crop and livestock farmers combined income dropping by $32.09 billion. That means farm income for 2020 will drop by $20 billion once lower input costs and higher government payments are included in the analysis. Looking ahead to 2020-2021 crops, the institute is projecting a five-to-ten-percent drop in grain and oilseed prices. FAPRI also sees a 20 percent drop in livestock prices during 2020. Around the nation, FAPRI says the key unknown is whether the coronavirus creates a “V-Shaped” recession that creates a quick recovery, or an economic disruption that lasts into next year. “The speed and duration of the recovery are also a great source of uncertainty,” FAPRI says in its analysis. “The GDP levels for 2021 and possibly later could continue to be below the levels forecast before the emergence of COVID-19.” The institute also says it could take consumers much longer to recover, which would affect energy, manufacturing, and agriculture. ********************************************************************************************** Farm Lending Activity Slows in the First Quarter Growth in farm lending continued to show signs of slowing, even prior to the emergence of COVID-19 and the resulting economic conditions the outbreak caused. A report from the Federal Reserve in Kansas City says the volume of operating loans in the first quarter actually increased from 2019. However, the overall demand for non-real estate loans declined. Despite a decline in most types of lending, loans for operating expenses increased by nearly 10 percent from the previous year. The overall decline was driven by a drop of about 30 percent in both livestock loans and miscellaneous loans. At the end of 2019, delinquency rates on farm loans continued to increase slightly, but agricultural credit conditions and farmland values were holding steady. Capital cushions at agricultural banks, which increased steadily in recent years, remained at historically high levels through last year. As the effects of the current economic disruption continue to materialize in the months ahead, the current stability of farm real estate values and financial soundness of farm banks could be key sources of support for the entire agricultural sector.
| Rural Advocate News | Friday April 17, 2020 |
Washington Insider: Fighting Virus Impacts The Trump administration is proposing to make purchases of milk and meat products as part of a $16 billion to $18 billion initial aid package for farmers rattled by the coronavirus, according to USDA Secretary Sonny Perdue. “We want to purchase as much of this milk, or other protein products, hams and pork products, and move them into where they can be utilized in our food banks, or possibly even into international humanitarian aid,” Perdue said on Fox Business News on Wednesday. He also said he wants to include direct financial assistance to farmers in the bailout. The combination of direct payments to farmers and bulk government purchases of commodities parallels the approach the administration followed in its $28 billion agriculture trade bailout over the past two years. That aid included $1.2 billion in bulk purchases in the first year including pork, beef, dairy and fruits and vegetables and an additional $1.4 billion for such purchases the second year. Many farm groups say they will need even more assistance to make it through the coronavirus pandemic, Bloomberg said. Hog farmers have asked USDA to purchase $1 billion in pork products, compared with $559 million in the first round of trade aid and $208 million in the second year. The National Pork Producers Council, which is also seeking direct payments to farmers, anticipates a $5 billion blow from the virus if hog prices stay at current depressed levels for the remainder of the year. In addition to milk purchases, dairy farmers have urged the administration to impose a temporary supply management program in which farmers would be paid for reducing milk production. Perdue didn’t address that request in his recent interview. The closure of restaurants, school cafeterias and other commercial food service operations has upended the market for agricultural products, particularly dairy, meat and produce. Food service is a disproportionate buyer of cheese, butter, meat and fresh fruits and vegetables. Dairy farmers are dumping as much as 8% of their milk, according to the Dairy Farmers of America cooperative. A shutdown of several slaughterhouses because of virus outbreaks among employees of the facilities has further disrupted hog and cattle farmers’ ability to sell their livestock. “When you have a slowdown in processing, which we’re working on to sustain as much as possible, then you have a backup in that,” Perdue said. However, the secretary said he didn’t expect the closures to cause any shortages of meat products on grocery shelves. The coronavirus relief bill Congress passed last month includes $23.5 billion in aid for farmers. Speaking at a news conference last week, Trump said his administration will develop a program with at least $16 billion initially for farmers, ranchers and producers. At about the same time it reported the anticipated request for ag producer assistance, Bloomberg reported that the effort to create a five-member oversight commission to police a major part of the massive coronavirus relief programs will be in place – but after two weeks, just one member has been appointed. The reasons for delays in choosing the chairman and three additional members aren’t clear, Bloomberg said. The deadline is less than a month away for the commission’s first report as it monitors about $500 billion of aid, including loans, loan guarantees, and investments to affected industries, including airlines. Senate Minority Leader Chuck Schumer, D-N.Y., is the only one of the four top House and Senate leaders to make his appointment, naming Bharat Ramamurti, on April 6. House Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Mitch McConnell, R-Ky., and House Minority Leader Kevin McCarthy, R-Calif., also will name members to the commission, and Pelosi and McConnell will jointly choose a chair. Ramamurti a former aide to Senator Elizabeth Warren, D-Mass., has forged ahead on his own, asking the U.S. Federal Reserve for information on the trillions in emergency loans that the central bank plans to extend to businesses. He wrote said to Fed Chairman Jerome Powell on Wednesday that “the public deserves to know which companies are receiving taxpayer-backed lending through the Fed and on what terms.” Aides to Pelosi, McCarthy and McConnell declined to disclose when their appointments might be announced, or why they haven’t been already. The commission, which is to designed operate for five years is modeled after a similar temporary oversight commission that reviewed the Troubled Asset Relief Program during the 2008 economic crisis. Pelosi, speaking on Tuesday, promised that the commission’s members would be installed, but gave no timeline. Asked whether Congress can ensure the coronavirus spending isn’t misspent or subject to corruption, she said, “Well, we have to,” adding that the commission “will be in place.” The commission doesn’t have staff even though it’s supposed to issue its first report within 30 days of Treasury’s first distribution of funds. The panel is required to make reports every 30 days after that. So, we will see. Day by day, the impacts of the virus continue front page news and questions of how to reopen the closed sectors of the economy and what government interventions will be required in the future continue to be bitterly contested. These are policy issues that should be watched closely by producers as these debates continue, Washington Insider believes.
| Rural Advocate News | Friday April 17, 2020 |
USDA, DHS Announce Shift on H-2A Workers USDA and the Department of Homeland Security (DHS) will allow more flexibility for employing H-2A workers already authorized to work other jobs in the U.S. and allowing those workers to stay beyond the period allowed under current rules via a temporary final rule the agencies released Wednesday. The decision means companies seeking H-2A workers can start employing certain foreign workers who are currently in H-2A status in the U.S. immediately after United States Citizenship and Immigration Services (USCIS) receives the H-2A petition. But those workers cannot be employed “earlier than the start date of employment listed on the petition” and must already be in the U.S. with a valid H-2A status, the departments added. Those already in the U.S. will be allowed to stay beyond the three-year maximum allowable period under the new rule. The rule will become effective when published in the Federal Register.
| Rural Advocate News | Friday April 17, 2020 |
Five US Governors Seek Waivers on Biofuel Requirements Governors of five U.S. states are asking the Trump administration to waive biofuel blending requirements on the basis that complying with the mandates post “severe economic harm” to the economy. The governors submitted a series of letters to EPA, including Greg Abbott of Texas, Gary Herbert of Utah, Kevin Stitt of Oklahoma and Mark Gordon of Wyoming. Louisiana Governor John Bel Edwards made a similar request on April 7, according to Reuters. EPA now has 90 days to decide on the matter. The governors cite a spike in the cost of Renewable Identification Numbers (RINs) – credits refiners can buy to demonstrate compliance with the requirements. They also cited the COVID-19 pandemic as another factor, noting that it has already forced the closure of at least one oil refinery. RIN prices have nearly doubled this year, a situation driven in part by a decision by the 10th Circuit Court that three small refinery exemptions (SREs) for the 2016 compliance year were invalid. EPA opted to not appeal that ruling, sending RIN prices rising. An appeal by the refiners impacted directly by the decision was also rejected by the court. Senate Environment and Public Works Committee Chairman John Barrasso, R-Wyo., issued a statement backing the requests. “I fully endorse the governors' request to reduce costly biofuel mandates on America's refineries,” he said. “As the global coronavirus pandemic continues, fuel demand has dropped dramatically. At the same time, compliance costs under the Renewable Fuel Standard have quadrupled since the start of the year. American refineries are now fighting for their lives.” EPA can waive the RFS requirements, in consultation with the Secretaries of Agriculture and Energy, under certain criteria. The waiver can be issued if the Administrator determines – after a notice and comment period – that implementation of the RFS requirements would severely harm the economy or environment of a state, a region, or the United States. There have been requests for waivers previously, with the most recent ones taking place in late 2017 and early 2018. EPA has not approved any of the waiver requests previously sought based on information the agency has released on requests since 2008.
| Rural Advocate News | Friday April 17, 2020 |
Friday Watch List Markets The Conference Board's U.S. index of leading economic indicators is due out at 9 a.m. CDT and is Friday's only scheduled report. U.S. coronavirus deaths are still on the rise and getting attention. Traders will also be interested in the latest weather forecasts, export news and updates on the status of meat processing plants. Weather Rain and snow are in store for the eastern Midwest Friday, adding to central U.S. precipitation which has sidelined spring fieldwork and delayed planting. Temperatures will continue below normal in northern and central areas, with some moderation in the central Plains and western Midwest. Southern areas have warmer and drier conditions for progress.
| Rural Advocate News | Thursday April 16, 2020 |
White House Economic Revival Group Includes Ag Representatives The White House economic recovery group includes agriculture leaders. Announced this week, the Great American Economic Revival Industry Groups will “chart the path forward toward a future of unparalleled American prosperity,” according to a White House press release. The panel on agriculture includes American Farm Bureau Federation President Zippy Duvall, along with processor and packer representatives from Tyson Foods, Cargill, Archer-Daniels-Midland, and others. The plan includes a separate food and beverage industry panel, as well. There are 16 panels in all, representing most of the U.S. economic sectors. Crop and livestock markets are plunging during the COVID-19 pandemic, with industry losses worth billions of dollars. The National Pork Producers Council called the pandemic a "financial disaster" for pork producers. The nation's hog farmers face a collective $5 billion loss for the remainder of the year, according to the organization. Nearly all agriculture sectors are requesting relief from the White House and the federal government to help farmers through the pandemic. ************************************************************************************ Ag Aid Package Coming Soon The Department of Agriculture may roll out a plan to provide relief to farmers this week. Reuters reports the plan may be unveiled soon, as part of the billions of dollars in funding made available to farmers and ranchers through the CARES Act. USDA sources say the initial plan will include direct payments to farmers, using CARES Act funding, and other resources. The CARES Act includes $9.5 billion in dedicated disaster funding, along with $14 billion to replenish the Commodity Credit Corporation. However, USDA previously indicated the CCC funding cannot be used until later this summer. The CCC has $6 billion in borrowing authority left out of $30 billion allowed annually, until June 30. The $9.5 billion is expected to be used to assist livestock producers, along with fruit and vegetable growers, and those who sell direct to consumers. USDA expects to announce additional aid phases as funding becomes available later this summer. ************************************************************************************ Coronavirus-Related Cattle Industry Losses Estimated at $13.6 Billion A study released this week estimates cattle industry losses as a result of the COVID-19 pandemic will reach $13.6 billion. The study was commissioned by the National Cattlemen’s Beef Association and conducted by a team of agricultural economists. The study shows cow-calf producers will see the largest impact, with COVID-19-related losses totaling an estimated $3.7 billion, or $111.91 per head for each mature breeding animal in the United States. Without offsetting relief payments, those losses could increase by $135.24 per mature breeding animal, for an additional impact totaling $4.45 billion in the coming years. Researchers who contributed to the study say the current situation is very fluid and uncertain, and additional damages are likely. NCBA hopes the results will assist USDA in determining how best to allocate CARES Act relief funds to cattle producers. NCBA CEO Colin Woodall says the study shows relief funds provided by Congress were a good first step. However, "there remains a massive need for more funding to be allocated as soon as members of Congress reconvene." ************************************************************************************ Consumer Concerns Remain High Amid Pandemic Consumer concerns remain high amid the COVID-19 pandemic. Research by the Consumer Brands Association shows that for the sixth week, American attitudes have remained largely consistent, as 91 percent of Americans say they are generally concerned about the virus. Preparedness also held steady from last week, with 76 percent of Americans reporting they feel prepared for the coronavirus' impact on their life. As manufacturers ramp up production and grocery stores implement item limits to prevent overbuying, 55 percent of respondents reported seeing more availability and restocks of high-demand items. Access concerns over finding shelf-stable food and beverage items, as well as over-the-counter medicines, both dropped. The most notable decrease was in food and beverage items, where high-demand items are reportedly coming back in stock across the country. For many Americans, a return to normalcy can't come soon enough. A majority, 60 percent said they are concerned about their ability to pay bills and afford necessities. ************************************************************************************ Wisconsin Dairy Recovery Program Announced The Wisconsin Dairy Industry Wednesday announced the Wisconsin Dairy Recovery Program. Dairy Farmers of Wisconsin, and the Wisconsin Department of Agriculture, Trade and Consumer Protection have joined forces with the state’s leading anti-hunger organization, Hunger Task Force, by connecting milk to emergency food organizations throughout the state. With the substantial support of the local individual donor community during the COVID-19 pandemic, Hunger Task Force will commit up to $1 million to the newly created Wisconsin Dairy Recovery Program. Wisconsin dairy farmers will be paid to supply milk to farmer-owned dairy cooperative Kemps, who will process the milk. Hunger Task Force will distribute milk to free and local partner food banks and food pantries through the Hunger Relief Federation of Wisconsin. The $45.6 billion dairy industry in Wisconsin is dealing with a sudden loss of business in schools and restaurants that account for nearly half the market. Without action, the groups say the entire state will feel the consequences and additional losses from a dairy and supply chain perspective. ************************************************************************************ United Fresh Start Foundation Awards $25,000 Through COVID-19 Donation Program The United Fresh Start Foundation has infused the fresh produce industry with 25 $1,000 COVID-19 Rapid Response FRESH Grants. The funds will help increase access to fresh fruits and vegetables for children and families in need, while also creating opportunities for foodservice distributors experiencing lost markets. The 25 grant recipients will provide fresh fruits and vegetables to children and families in need, reaching them in schools, community centers, and other emergency feeding sites. Chair of the United Fresh Start Foundation Board of Trustees, Lisa McNeece, says, "We praise all of the companies across the supply chain working within their communities to broaden access to fresh fruits and vegetables, despite their own economic hardships." The program is funded through the generosity of individuals who have agreed to donate their prepaid registration fees for the United Fresh 2020 Convention in San Diego to the United Fresh Start Foundation. Additional donations will allow the Foundation to build upon its efforts. More information is available on UnitedFresh.org.
| Rural Advocate News | Thursday April 16, 2020 |
Washington Insider: New Fed Monetary Efforts As the nation struggles with the impacts of the coronavirus, the Federal Reserve is continuing to pump enormous amounts of aid into the economy, The Hill is reporting this week. It is blowing through old taboos with trillions of dollars in rescue loans and bond purchases and facing little concern, The Hill says. Faced with a “once-in-a-century” economic crisis, Fed Chairman Jerome Powell has pledged to flood the U.S. with as much rescue lending and bond purchases as its legal charter allows and the economy requires. It now has purchased more than $1 trillion in Treasury bonds and mortgage-backed securities that anchor U.S. financial markets, with no clear limit in sight. The central bank has also opened nearly a dozen special credit facilities to purchase a wide range of consumer, corporate and government debt in exchange for loans to financial firms, businesses and municipal governments. In addition, the Fed announced it would offer another $2.5 trillion in economic relief, including unprecedented direct aid to nonfinancial businesses and municipal governments. The Hill noted that the Fed used its emergency lending powers and balance sheet to stimulate the economy and stabilize financial markets during the earlier 2007-09 crisis and recession but was criticized for its efforts to prop up banks. However, few are now questioning the necessity of the recent sprint to stop an economic collapse. “Moral hazard is not part of the debate as it was during the financial crisis in 2008-09,” said Diane Swonk, chief economist at Grant Thornton. “That is because this time really is different. We have to abandon our biases and warehouse them to deal with a health crisis. It is not the time to discuss who is worthy of our efforts.” Even so, the scale and speed of the Fed’s latest intervention have raised some concerns about who may still get left behind. “If the Fed continues to go down this road and opens new windows and picks more sectors to support, particularly in this top-down way, the political consequences are going to be pretty interesting,” said Karen Shaw Petrou, managing partner at Washington, D.C., research and consulting firm Federal Financial Analytics. The Fed’s primary responsibilities are keeping prices stable and unemployment low through monetary policy and ensuring the safety of the U.S. banks through regulation and supervision. But a provision of the bill that created the modern Fed system allows the central bank to become the lender of last resort in extreme economic downturns, with the consent of the Treasury secretary. The catastrophic toll of the coronavirus pandemic and the recession it has created spurred few political challenges to the Fed’s actions. With the blessing of Treasury Secretary Steven Mnuchin the Fed has rewritten the playbook for responding to an economic crisis. The report also is true that Powell’s hand is being forced in part by the president and Congress. The $2.2 trillion economic rescue bill orders the Fed to use some of the $454 billion appropriated to backstop its emergency lending programs in facilities for businesses and municipal governments, it said. The Fed faced criticism in the earlier recession for its unwillingness to extend the same discounted loans to businesses and local governments that it offered to banks, largely because of the political hazards of choosing which specific municipalities or businesses would receive help. But the scale of the coronavirus pandemic and steep costs it will impose on states have largely erased any hesitation by the Fed to aid municipal governments. The central bank announced last week it would purchase up to $500 billion in bonds from cities with more than 1 million residents and counties with more than 2 million. The Fed also announced it would offer four-year loans to companies with up to 10,000 employees or less than $2.5 billion in annual revenue that were financially solid before the coronavirus outbreak through a “Main Street Lending Facility.” The speed and extent of the subsequent rebound remains deeply uncertain, but it is clear that both Congress and the Fed appreciate the depth and extent of the problem, The Hill said. Few have questioned the necessity of the Fed’s ambitious rescue plan, although the long-term implications of the central bank’s scramble to save the economy worry some Fed watchers and analysts, especially because of the coronavirus’s unique threats to the most vulnerable. So, we will see. The far-reaching federal anti-virus efforts now have strong support, but can have important and disparate impacts across the economy, observers note. These are significant and should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday April 16, 2020 |
USDA Enters Into Agreement for Disaster Payments For Sugar Producers USDA has entered into an agreement with cooperative processors to provide 2018 and 2019 disaster assistance to sugar producers that are members of the cooperative, according to the Farm Service Agency (FSA). American Crystal Sugar Company, Michigan Sugar Company, Minn-Dak Farmers Cooperative, Snake River/Amalgamated Sugar Company, Southern Minnesota Beet Sugar Cooperative, Western Sugar Cooperative and Wyoming Sugar Company are the cooperatives with an approved USDA agreement. However, USDA said that producers who deliver sugar to Sidney Sugars Incorporated are not members of a cooperative processors, but those with qualifying losses for 2018 and/or 2019 sugarbeet losses can apply for Wildfires and Hurricanes Indemnity Program Plus (WHIP+) benefits. Members of an approved cooperative processor with sugarbeet losses must apply for 2018 and 2019 disaster benefits through their cooperative processors, FSA said.
| Rural Advocate News | Thursday April 16, 2020 |
Cattle Industry Losses Pegged At $13.6 Billion The U.S. cattle industry is estimated to see losses of $13.6 billion due to the COVID-19 situation, according to an analysis released by the National Cattlemen’s Beef Association (NCBA). Cow-calf producers are expected to see the biggest impact, with losses forecast at $3.7 billion or $111.91 per head for each mature breeding animal. Stocker/backgrounder losses are put at $156.98 per head for a total impact of $2.5 billion for 2020, while feeding sector losses are figured at $205.96 per head or $3.0 billion. “This study confirms that cattle producers have suffered massive economic damage as a result of the COVID-19 outbreak and those losses will continue to mount for years to come, driving many producers to the brink of collapse and beyond if relief funds aren't made available soon,” said NCBA CEO Colin Woodall. “This study also clearly illustrates the fact that while the relief funds provided by Congress were a good first step, there remains a massive need for more funding to be allocated as soon as members of Congress reconvene.”
| Rural Advocate News | Thursday April 16, 2020 |
Thursday Watch List Markets We will be watching jobless claims and housing starts out at 7:30 a.m. CST. as well as progress on COVID--19 infections, and the rate of spread. We will also be watching export sales out at 7:30 for any signs of China demand. Weather Moderate to heavy snow is in store Thursday from the central Plains to the eastern Midwest. Freezing conditions also extend from the south-central Plains through the Mid-South. Snow and accompanying well-below-normal temperatures will keep fieldwork and planting sidelined into late April over northern and central crop areas. Southern areas will have a dry and mild pattern for fieldwork during the next few days.
| Rural Advocate News | Wednesday April 15, 2020 |
U.S. Agriculture Reducing Per-unit GHG Emissions A new analysis shows U.S. farmers and ranchers continue to reduce per-unit greenhouse gas emissions. Data from the Environmental Protection Agency and Department of Agriculture shows the agricultural sector accounts for less than ten percent of total U.S. emissions. The EPA's U.S. Inventory of Greenhouse Gas Emissions provides a first look at 2018 U.S. emissions data, incorporated into a new Market Intel report from the American Farm Bureau Federation. The report finds that per-unit methane emissions from livestock have declined since 1990 as livestock producers have increased productivity. During the past 30 years, U.S. milk production has increased 71 percent, while per-unit emissions of milk have declined by almost 25 percent. Beef production has increased almost 50 percent, while per-unit emissions have fallen nearly eight percent. Meanwhile, American farmers are producing more crops on fewer acres. The analysis builds on data shared during the launch of Farmers for a Sustainable Future, a coalition of agriculture groups aimed at educating lawmakers and finding solutions to challenges posed by climate change. ************************************************************************************ Rebalancing Production Can Speed Dairy Market Recovery A dairy industry economist says rebalancing production can speed up market recovery. National Milk Producers Federation chief economist Peter Vitaliano says government support for dairy producers to reduce production in the coming months can speed dairy’s recovery from coronavirus-driven price declines. He says a unified, collective government action, “would probably be the best and most effective and speediest way of rebalancing supply and demand.” The comments were included in an NMPF podcast released Tuesday. Production balancing is part of the NMPF and International Dairy Foods Association plan for dairy assistance presented to the Department of Agriculture last week. Current dairy supply exceeds demand by at least ten percent, and could worsen as supply increases to seasonal" peaks and consumers remain under “shelter in place” orders. NMPF, along with IDFA, urge USDA to “use as many tools as possible, as quickly as possible,” to bridge the supply/demand gap, as part of their recommendations to USDA. ************************************************************************************ Peterson: USDA Should Increase Commodity Purchases to Help Farmers, Food Banks House Agriculture Committee Chairman Collin Peterson urges the Trump administration to maximize the purchase of agricultural commodities for donation and distribution. In a letter to Agriculture Secretary Sonny Perdue Tuesday morning, Peterson says that purchases by USDA can "help ensure the production that no longer has a foodservice market can be made available to help our nation's foodbanks." In the letter, Peterson urged the Administration to use the $9.5 billion in funding through the CARES Act, the authorities of the Commodity Credit Corporation, and Section 32. Peterson says the agriculture economy was already in a fragile state from several years of adverse weather conditions and a challenging trade situation. Peterson says farmers are frustrated with the inability to get their products to market, and to consumers who need food assistance. Despite being an essential service, ag producers and their supply chain partners “are facing the total loss of some market segments and the inability to quickly change their marketing and processing capabilities to meet the new realities.” ************************************************************************************ Senators Urge USDA To Support Local Food, Dairy, Specialty Crops A bipartisan group of Senators seeks federal relief for local farmers struggling during the COVID-19 pandemic. Led by Debbie Stabenow of Michigan, the top Democrat on the Senate Agriculture Committee, the group sent a letter to the Department of Agriculture this week. The senators urged USDA to ensure a portion of the $9.5 billion secured in the Coronavirus Aid, Relief, and Economic Security, or CARES Act, goes to local farmers who sell directly to consumers, schools, institutions, food hubs, regional distribution centers, retail markets, farmers markets and restaurants. In addition to urging USDA to ensure relief is getting to local farmers, the senators also pressed the department to administer direct payments through the Farm Service Agency in response to the local food industry's projected $1.1 billion loss in revenue. They asked that in order to be eligible to receive a direct payment, local food producers should derive at least 25 percent of total farm income from sales that are locally purchased, including food sold directly to consumers. ************************************************************************************ Livestock Marketing Association Encourages Investigation of Beef Packers The Livestock Marketing Association welcomes the expansion of an investigation into the beef markets. The association this week called for the investigation of beef packers to be comprehensive and expeditious. In a letter to Agriculture Secretary Sonny Perdue, the association says the investigation should “consider all potential anticompetitive” issues. The association has supported USDA’s investigation into beef pricing margins, which was opened in August 2019 following a beef processing plant fire. The cattle market in the wake of COVID-19 has responded similarly to how it did after the Holcomb plant fire. Once federal, state, and local authorities began instituting recommended and mandatory economic shutdowns in early March 2020, the cattle industry experienced a sharp decline in fed cattle and feeder cattle prices. At the same time, boxed beef prices skyrocketed, and consumers emptied meat cases. The combination of these factors resulted in significant packer profit margins. All the while, livestock producers continue to receive a shrinking portion of the retail beef dollar paid by the American consumer. ************************************************************************************ Corteva Names Alonzo to External Affairs, Sustainability Post Corteva Tuesday announced Anne L. Alonzo will join the company as Senior Vice President, External Affairs and Chief Sustainability Officer, effective April 20, 2020. A widely recognized global food and agriculture leader, Alonzo will have responsibility for setting strategy and leading the External Affairs function, which includes Corporate Communications, Global Corporate Responsibility, Government and Industry Affairs, and Product Advocacy. Most recently, Alonzo served as President and CEO of the American Egg Board, the U.S. egg industry's marketing arm. Before joining the American Egg Board in 2016, Alonzo was appointed by the White House to serve as Administrator of the Agricultural Marketing Service. She previously served as Vice President, Global Public Policy, Corporate Affairs at Kraft Foods, leading all global corporate affairs work in the areas of sustainability, tariffs, tax, trade and health and wellness, as well as global issues management. Alonzo says she is "excited to join a team that is already demonstrating its commitment to building an agricultural ecosystem that supports people, progress and the planet."
| Rural Advocate News | Wednesday April 15, 2020 |
Washington Insider: Food Supply Chain Disruptions The administration has spent a lot of time lately assuring consumers that there is plenty of food. Some experts say the system has problems anyway. For example, The Hill is reporting this week that former Agriculture Secretary Tom Vilsack said last week that a "cascading series of events" is disrupting the U.S. food supply chain and could “impact millions of Americans.” Vilsack is pointing to interruptions like the shutdown of public schools, universities and even some restaurants that served as a source of food for many who now have been "redirected" amid the coronavirus outbreak. The result has been a “cascading series of events,” Vilsack said, that mean that a “tremendous amount of the overall supply of food” must be redirected. Vilsack previously served as secretary of agriculture for the duration of former President Obama's terms in the White House, and before that was governor of Iowa for eight years. Bloomberg also added detail in a report that said that grocers are struggling to keep shelves stocked because producers lack incentive to deliver some products like milk or some produce. The problem, Bloomberg says, is that the food marketplace “can’t be easily adjusted on the fly, even during a crisis.” It’s why farmers and others in food supply are counting on $9.5 billion in aid designated for them within the $2 trillion CARES Act that was signed March 27. With restaurants, school cafeterias and sporting arenas closed, the supply chain for food service “has seen demand evaporate overnight.” The industry normally would serve about 100 million restaurant meals and 30 million school lunches over a five-day period, said Robert Guenther, senior vice president of government relations for United Fresh, a trade association representing the fresh produce industry. With COVID-19, Guenther said that supply chain “literally froze up in a matter of days.” Even as produce planted back in December and January will be ready for harvest in the near future, the demand is so low now that the question people are facing is “whether it makes sense to incur the operational costs to go out and harvest,” said Chris Valadez, president of the Grower-Shipper Association, a California-based trade association representing fruit and vegetable growers. According to Guenther, the commercial food service industry accounts for roughly 40% of all fresh produce grown in the U.S. But that number is far greater for certain products. “Most of the iceberg lettuce we grow goes into the fast-food industry, retail takes almost no iceberg lettuce,” said Tim York, president of the Markon Cooperative. Based in Salinas, Calif., Markon is a purchasing co-op, which buys fresh fruits and vegetables for food-service distribution companies including Sysco Corp., U.S. Foods Inc. and Performance Food Group Co. “As the food service economy grinds to a halt, farmers have all this iceberg lettuce with no place to sell it,” he said. Pandemic-driven demand is driving purchases of certain staples such as bread, meat, eggs and dried beans. The same isn’t necessarily true for fresh fruits and vegetables. “For the time being everyone’s waiting, storing what they can in packing sheds, or leaving it unharvested in the field,” Guenther said. Moreover, as retailers respond to shoppers changing preferences, York said grocery stores are simplifying their inventory by reducing the number of produce stock keeping units from a normal range of 300-400, down to 60-70. Sysco and competitor Gordon Food Service said they’re assisting restaurant customers as they try to adapt their businesses for take-out and delivery, or even in some cases, acting as “mini mart” stores. But it doesn’t come close to compensating for normal volume. As a result, Mutschler said, the company has been forced to lay off staff while also trying to secure agreements with retail grocers to backfill any shortages. USDA said it is evaluating the authorities granted under the CARES Act and will leverage its programs to alleviate disruption as necessary, a spokesperson said last week. He added that the U.S. food supply chain remains safe and secure. But some worry the relief won’t be anywhere near enough to keep many producers from going out of business. “Whatever amount ultimately becomes available, I’m not banking that it will be enough to keep the operational side of our industry adequately lubricated,” Valadez said. “I just don’t see that.” Still others worry about the disruption created by a long-term shift in demand. “You can’t just not harvest until the market comes back,” said Dale Moore, American Farm Bureau Federation executive vice president. “We’ve got farmers whose market has disappeared.” The Farm Bureau said it’s working with USDA and food bank leaders to develop solutions to distribute perishable food to consumers in need. “Whether it’s buying the produce and distributing that food to different nutrition and feeding programs,” Moore said, “or just making a direct payment to them to help carry themselves over until we can start getting our feet back under us, that’s what we’re going to be doing.” So, we will see. The food system is enormously complex and highly sensitive — and disruptions can mean impacts that last for long periods. These will require careful management to avoid severe consumer shocks, threats producers should watch closely as the virus impacts emerge, Washington Insider believes.
| Rural Advocate News | Wednesday April 15, 2020 |
Lawmaker Push on USDA COVID-19 Aid Continues Farm-state Senators continue to fire off letters to USDA outlining their wants for specific commodities in any USDA COVID-19 aid plan. Senate Ag Committee Ranking Member Debbie Stabenow, D-Mich., and other lawmakers Monday fired off a series of letters to USDA Secretary Sonny Perdue calling for USDA COVID-19 aid plans to include specialty crop producers which the letter said have seen losses of $5 billion so far with more ahead. They want USDA to provide direct payments to cover lost revenue and increased production costs and want the agency to buy specialty crops to redistribute to food banks, schools and emergency feeding organizations. For dairy, the letter calls on USDA to “build off existing programs to deliver both direct assistance to dairy farmers and intervene in the market to reverse the decline in futures prices and signal a floor on farm prices.” They also want USDA to reopen the Dairy Market Coverage (DMC) signup that closed in December and make sizable buys of dairy products for food and feed efforts. A portion of the $9.5 billion tabbed for COVID-19 aid from USDA also needs to go to local farmers who sell directly to consumers, schools, institutions and others, according to a third letter. Lawmakers signing that letter noted the specific mention of those who supply local food systems as being eligible for a portion of the aid. They called on USDA to require that those receiving aid show they have at least 25% of their total farm income from local sales. USDA is expected to unveil its details of around $16 billion in aid plans either this week or next week.
| Rural Advocate News | Wednesday April 15, 2020 |
NPPC Calls for Billions in Aid to Hog Farmers U.S. hog producers are expected to lose $37 per head the rest of this year due to the COVID-19 situation, which would be losses of around $5 billion for the hog industry, according to the National Pork Producers Council (NPPC). As hog plants have suspended operations due to workers contracting COVID-19, NPPC President Howard Roth said that conditions have become “dramatically worse in recent days.” The situation has meant hogs are backing up on farms. He added, “Market-ready hogs have nowhere to go.” While pork supplies are currently adequate, the group warned that if the hog plant shutdowns grow, it could impact retail supplies to consumers. The group also wants USDA to buy up to $1 billion in pork for domestic food and feeding programs, urging that the products should also include those packaged for restaurants and other areas of the food service sector.
| Rural Advocate News | Wednesday April 15, 2020 |
Wednesday Watch List Markets Wednesday's most watched report will be the U.S. Energy Department's weekly inventories at 9:30 a.m. CDT and will include last week's ethanol production, inventory and an update of gasoline demand. A report on U.S. industrial production is set for 8:15 a.m. CDT, followed by a monthly report on soybean crush later Wednesday morning and the Federal Reserve's Beige Book at 1 p.m. Weather Wednesday features much-below-normal temperatures in northern and central crop areas, along with periods of snow in the Midwest and locally heavy snow in the northwestern Plains. Freeze warnings cover a large portion of the Southern Plains, Delta and eastern Midwest. Winter storm warnings are in effect for heavy snow and strong winds later Wednesday in the northwestern Plains.
| Rural Advocate News | Tuesday April 14, 2020 |
Meatpacker Closings Hard on Food Supply Chain Smithfield Foods will close its pork processing plant in Sioux Falls, South Dakota, until further notice because of employees who tested positive for the coronavirus. It’s just one of several major agricultural facilities temporarily closing operations due to the pandemic. Virginia-based Smithfield Foods says the closures are a trend that may eventually put a dent in the U.S. meat supply. “The closure of this facility, combined with the growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply,” says Smithfield CEO Kenneth Sullivan. “It’s impossible to keep our grocery stores stocked if our plants aren’t up and running.” In addition to a negative impact on consumers, Sullivan also warns of “either severe or possibly disastrous repercussions” across the entire supply chain, including on livestock producers. The company says their Sioux Falls site employs about 3,700 people, processes roughly 130 million food servings a week, and it buys from 550 independent producers. “These farmers won’t have anywhere to send their animals,” Sullivan adds. Almost 300 employees at Smithfield in South Dakota tested positive for the coronavirus, accounting for 40 percent of all the cases in the state. ********************************************************************************************** USDA Addresses Milk Dumping The USDA’s Risk Management Agency is ensuring that milk producers are not inappropriately penalized if their milk must be dumped because of recent market disruptions caused by COVID-19. The RMA is also extending inspection deadlines, waiving inspection requirements, and authorizing more crop insurance transactions over the phone and electronically to help producers during the current crisis. Many state and local governments have issued “stay-at-home” orders and shut down non-essential businesses in response to COVID-19. It’s resulted in market disruptions and prevented in-person crop insurance transactions. RMA says it will allow dumped milk to be counted as milk marketings for the Dairy Revenue Protection or actual marketings for the Livestock Gross Margin for Dairy programs. The agency will also allow phone and electronic transactions for 2021 crop year sales and reporting dates, including options and endorsements. The deadline for some perennial crop Pre-Acceptance Inspection Reports has been extended. “Dairy Revenue Protection is a vital risk-management tool for our dairy farmers, especially during times like these, and USDA wants to ensure producers continue to get the coverage they purchased,” says RMA Administrator Martin Barbre. ********************************************************************************************** Farmers and Ranchers Ready to Help Food Banks Food banks across the nation are having a hard time keeping up with increased demand due to the COVID-19 pandemic. The American Farm Bureau Federation, as well as the group Feeding America, says farmers and ranchers are ready and willing to work with USDA to help bridge the supply gap and get farm products to those in need. The organizations praised USDA leadership through the crisis and offered recommendations for additional steps to ensure food banks across America are well stocked, which would allow farmers and ranchers to expand on existing partnerships with food banks and respond to shifting demands and pressing needs. While demand has increased across the supply chain as store shelves have emptied due to panic buying, food banks are seeing as much as a 100 percent increase in demand. AFBF and Feeding America both say this demand can be met by redirecting supply from farmers and ranchers who’ve lost other markets like restaurants and tourism businesses due to closures and stay-at-home orders, by implementing a USDA-run voucher system. This would allow farmers and ranchers to work directly with food banks to get farm-fresh products quickly to families in need, while also preventing food waste and helping farmers recoup some of their production costs at a time when they’re fighting to hold on. ********************************************************************************************** Restaurants Turning to Grocery Sales to Stay Afloat A very important link in the American food-supply chain is restaurants, which are looking at new temporary ways of doing business to stay afloat. As traditional grocers struggle to keep up with increased demand brought on by COVID-19, restaurants are turning to grocery sales to make ends meet. ABC News says it’s a trend that’s catching on across the country as large chains and mom-and-pop establishments look for new income. Panera launched Panera Grocery, which not only sells traditional Panera restaurant items, but items like milk, eggs, and fresh produce that its 2,100 stores normally use to make meals. Sara Burnett, Vice President of Wellness and Food Policy at Panera, says the decision to sell groceries is a reaction to the “unprecedented crisis our country is going through right now.” Subway is selling groceries at 250 of its stores in five states, including California, Connecticut, Oregon, Tennessee, and Washington. The National Restaurant Association says the industry has lost three million jobs and $25 billion in sales since March 1. A spokeswoman says three percent of restaurants have permanently closed and another 11 percent will do so by the end of this month. ********************************************************************************************** Ag Retailers on Solid Ground During Pandemic A recent CoBank report says agricultural retailers look to be in good shape as the COVID-19 pandemic continues. The report says ag retailers are on “relatively firm footing” as they prepare for spring after last year’s complicated agronomy season. CoBank’s proprietary borrower database says farmer prepayments, accounts receivables, and delinquency trends reported by CoBank farm supply cooperative customers remain in line with 2018, which could indicate a stable-to-improved outlook for agronomy sales and services. Ag retailers’ inventories of seeds, agrochemicals, and fertilizer should meet customer needs during the 2020 planting season, which is expected to see an increase in the number of planted acres for both corn and soybeans. Adverse weather, and more specifically flooding, remain elevated risk factors this season, with forecasts for above-average precipitation this spring over areas that contain already saturated soils. Agronomy sales and service could take a hit if the weather once again leads to high levels of prevented planting. The coronavirus spread may impact supply chains and the availability of certain imported crop inputs that retailers rely on in the short term. ********************************************************************************************** NASS Preparing for 2022 Census of Agriculture The National Agricultural Statistics Service recently mailed out the National Agricultural Classification Survey to 350,000 potential farmers and ranchers. The NACS will help identify all those engaged in agricultural activity in the country to ensure that they are included in the 2022 Census of Agriculture. NASS requests that each person who receives the survey respond by May 4. “NACS plays an integral role in getting a complete count in the Census of Agriculture,” says NASS Census and Survey Director Barbara Rater. “By participating in the census, producers show the breadth and value of agriculture, and inform decisions that can impact their operations and industry.” She says it’s for those reasons that they need everyone who receives a classification survey to respond. Even if the form doesn’t apply to them, Rater says they need those folks to respond online to at least the first four questions. To protect the health and safety of the public and its employees, NASS has suspended in-person data collection and limited other in-person mail processing. Completed forms may also be mailed back in the prepaid envelope they provide.
| Rural Advocate News | Tuesday April 14, 2020 |
Washington Insider: The Next Anti-virus Subsidy Bill Pressure is mounting for the “next” virus subsidy bill but The Hill is reporting that some GOP lawmakers are seeking to hold back, at least for now. Others such as Sen. Josh Hawley, R-Mo., are calling for a rapid infusion of new federal aid costing trillions of dollars. The report also notes that at the state level, Republican Gov. Larry Hogan of Maryland, the chairman of the National Governors Association, is spearheading a push for an additional $500 billion to states. At the same time, there is another fight underway. Some GOP voices such as Sen. John Kennedy, R-La., want to speed up the timeline for reopening the U.S. economy instead of having U.S. taxpayers supplant the role of private employers. The Trump administration and Senate Republicans agree that Congress needs to approve at least another $250 billion for the broadly popular Paycheck Protection Program, a small-business lending program that will forgive loans to employers who keep workers on payroll. The initiative was allotted $349 billion late last month. But actually defining that step is proving to be hard. Hawley made a splash this past week with a Washington Post OpEd calling on the federal government to immediately start covering 80% of wages for workers at any U.S. business, up to the median wage, for as long as the crisis lasts. He also proposed a bonus for businesses that rehire workers laid off over the past 30 days. However, such a bold government intervention quickly drew opposition from some of his fellow Republicans. “I think it’s way too broad. I think a much more focused approach is needed,” said former Sen. Judd Gregg, R-N.H., who once chaired the Senate Budget Committee and served as an adviser to Senate Majority Leader Mitch McConnell, R-Ky., and his leadership team. He thinks it’s better to wait and see how the $2.2 trillion coronavirus relief package, which became law on March 27, plays out. “They should be ready to pass another initiative, but I don’t think they need to pass it immediately,” he said. “We got to get this economy back open,” Kennedy said. Government shut it down.” McConnell and his leadership team have endorsed the wait-and-see approach. He says Congress should focus first on patching up problems and oversights in last month’s $2.2 trillion measure, which was hastily negotiated in less than a week with McConnell, Treasury Secretary Steven Mnuchin and Senate Democratic Leader Charles Schumer, D-N.Y. “The country needs us to be nimble, to fix urgent problems as fast as we can, to be able to have focused discussions on urgent subjects without turning every conversation into a conversation about everything,” McConnell said. The GOP leader argued that Schumer and Speaker Nancy Pelosi, D-Calif., are pushing for more money for state and local government budgets when “literally no money has gone out the door yet.” Democrats say a phase-four coronavirus relief package should be at least $500 billion, double the small-business infusion McConnell sought last week. But it’s not clear if the GOP leader’s preference for slowing legislative action is supported by Mnuchin. Schumer announced said on Friday that he thinks a deal with the Treasury secretary is possible early this week. He said he had a constructive call with Secretary Mnuchin last week during which he agreed to pursue bipartisan talks with the House and Senate Democrats and Republican leadership on interim Emergency Coronavirus Relief legislation. And, he thinks “There’s no reason why we can’t come to a bipartisan agreement. Schumer’s statement indicated he’s now interested in a four-person negotiation between the top Republican and Democratic leaders in the Senate and House. McConnell rejected that format last month ahead of the negotiations on the phase-three bill. Republican senators, however, want direct involvement in the talks, and some are skeptical of Mnuchin’s commitment to conservative principles, especially after he negotiated the second coronavirus relief package almost entirely with Pelosi. GOP lawmakers such as Sen. Tom Cotton, R-Ark., were furious that Mnuchin agreed to mandating two weeks of sick leave for medium-sized businesses. And, GOP leaders in Congress also are coming under pressure from governors in both parties. The National Governors Association on Saturday asked Congress for $500 billion to help states facing budget deficits from their fight against the coronavirus. “Congress must appropriate an additional $500 billion specifically for all states and territories to meet the states’ budgetary shortfalls that have resulted from this unprecedented public health crisis," the group said That could be a big ask. Bailing out state budget shortfalls is not a popular idea in the Senate GOP conference. “We’re generally not interested in bailing out the states,” Sen. Ron Johnson, R-Wis., said when the previous coronavirus bill was being crafted. “They’re their own form of government. They have their own taxing authority.” So, we will see. Much depends on the virus and how the measures employed against it succeed in tamping it down, actual life or death measures that producers should watch closely as the country attempts to deal with this evolving disease threat, Washington Insider believes.
| Rural Advocate News | Tuesday April 14, 2020 |
USDA Confirms HPAI in South Carolina Turkey Operation USDA Thursday confirmed that the first case of highly pathogenic avian influenza (HPAI) since 2017 had been confirmed in a commercial turkey operation in South Carolina. The situation prompted several adjustments to U.S. export markets, with only the European Union (EU) and some other smaller customers for U.S. poultry deploying blanket bans on all U.S. poultry. The EU one is somewhat surprising in that during the 2015 HPAI outbreak in the U.S., the EU deployed more-targeted restrictions. Most U.S. poultry importing countries have blocked imports from the area immediately surrounding the detected case, from the county involved or all of South Carolina. China and South Korea have not deployed blanket bans on U.S. poultry in the wake of the find of the H7N3 HPAI find. The phase-one agreement with China called on the two sides to agree to a regionalization of poultry issues – that any trade bans in the event of something like bird flu could not be nationwide bans.
| Rural Advocate News | Tuesday April 14, 2020 |
USDA Seen Sending Ag Aid Plan Forward This Week President Donald Trump late last week said that USDA would be coming soon with an aid plan for U.S. ag producers, with the package to be around $16 billion. That figures to be the $9.5 billion in the third round of COVID-19 aid that is to “support agricultural producers impacted by coronavirus, including producers of specialty crops, producers that supply local food systems, including farmers' markets, restaurants, and schools, and livestock producers, including dairy producers.” Plus, there is around $7 billion to $9 billion in Commodity Credit Corporation (CCC) authority remaining. Indications are the plans for the aid will head to the Office of Management and Budget (OMB) this week, with announcement of the effort either yet this week or next week, according to contacts. The broader aid effort involving the additional $14 billion in CCC authority will not come immediately as USDA Secretary Sonny Perdue has indicated the additional CCC authority is not available until July.
| Rural Advocate News | Tuesday April 14, 2020 |
Tuesday Watch List Markets There are no official reports on Tuesday's docket, but plenty of market topics to track. Weather and the results of Monday afternoon's Crop Progress report will be noted early Tuesday. Traders will also be watching for any grain trade news, explanations of OPEC's latest production agreement and coronavirus statistic updates. There may also be caution in energy-related markets ahead of Wednesday's inventory report from the U.S. Energy Department. Weather A band of rain and snow is in store for the Southern Plains Tuesday. Other crop areas will be dry. Temperatures will be well below normal in most areas. Freeze warnings cover the Southern Plains and southern Midwest Tuesday morning.
| Rural Advocate News | Monday April 13, 2020 |
Washington Insider: Farmers Vie for Coronavirus Aid POLITICO is reporting that while Congress authorized several billion dollars to help struggling producers weather the coronavirus market decline, it provided little direction about how or where the funds should be spent. This is putting significant pressure on USDA as it works to figure out how to disperse aid across the vast farm economy as quickly and evenly as possible. Lobbying for access to these funds has become intense, the report says. Numerous industry groups also are enlisting their allies on Capitol Hill to help make their case. “Threading that particular needle is a tall order,” POLITICO says, and the program, whatever it turns out to be, is “sure to face heavy scrutiny, especially since the payments for market losses over the last two years were criticized heavily as unfair and tilted toward Southern states and wealthy farmers. Many commodity groups complained that their sector was shortchanged by the direct payment rates or excluded altogether. Even before any relief checks have gone out, the American Farm Bureau Federation claimed that more money will soon be needed from Congress. “We’re going to find out very quickly that amount of money is not going to help sustain a lot of our farmers through this difficult time,” said the group’s president, Zippy Duvall. “The secretary was asking for a lot more.” In the meantime, lawmakers have flooded Agriculture Secretary Sonny Perdue’s mailbox every day with letters reminding him to make sure farmers in their states aren’t forgotten. Perdue’s challenge is to get money into the hands of farmers without skewing their business decisions like which crops to plant or drawing charges of political favoritism. The $2 trillion economic rescue package signed into law last month includes $9.5 billion for cattle ranchers, fresh produce growers and other agricultural sectors affected by the economic freeze, as well as another $14 billion injection for the Commodity Credit Corporation that can be used in a variety of ways. The $9.5 billion in direct agricultural aid allocated to Perdue’s office names specific sectors that should receive assistance, including dairy and livestock industries; growers of specialty crops like fruits, nuts and vegetables; and producers that “supply local food systems” including schools and farmers markets. The aid isn’t earmarked exclusively for those groups, and Congress didn’t provide any other directions in the legislation itself. Dale Moore, AFBF’s executive vice president, told reporters last week that Perdue interpreted the funding provision to apply to “a broader range of folks who are not covered by other aspects” of farm assistance, rather than just the groups that are listed. Even as the relief bill was being crafted, Western senators went to bat for livestock producers during the negotiations. Now, they’re heaping pressure on USDA to keep cattle ranchers’ concerns in mind. More than 100 lawmakers sent Perdue a letter last week arguing that “there is an immediate need for assistance for our cattle producers” while the impact on other farm commodities was still being measured. The dairy industry, which has struggled through years of low milk prices, rapid consolidation and rising bankruptcies has called for USDA to buy up their milk products and distribute them to those in need. Similar proposals have been floated for specialty crops, like fresh fruits and vegetables, which are now being left to rot in some regions. The potential price tag for supporting those specifically named groups is quickly adding up. Even local and regional agricultural markets like farmers’ markets and farm-to-school programs are facing more than $1 billion in losses, according to industry estimates. Midwestern senators this week asked Perdue to use some of the additional $14 billion in CCC spending power to offset biofuel market carnage which has, in turn, brought down corn futures prices by about 15% since January. Some analysts expect USDA will design a program similar to its trade relief payments since 2018. The department attempted to calculate the impact of retaliatory tariffs on specific commodity prices, and then reimbursed farmers based on the volume and variety of their production, or that of their county. As with the trade bailout funds, the stimulus money could be distributed in multiple batches. That would allow Perdue to bolster reeling sectors that need money now while leaving room to adjust course as needed. USDA could even use its additional spending power through the CCC to fund another round of trade aid itself, now that China has struggled to fulfill its promise to import eye-popping sums of U.S. farm goods as part of the “Phase One” trade deal signed in January. For example, soybean futures prices haven’t fallen as steeply since January as other major crops like corn or cotton. But growers of the oilseed arguably were hit hardest by President Donald Trump’s trade war with Beijing, and they made out well under USDA’s trade relief program, POLITICO said. So, we will see. USDA has not laid out a timeline for when it will announce details of the stimulus payments, but these decisions certainly should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Monday April 13, 2020 |
China Phase One Agreement Implementation Focus Continues Even as market attention is mostly on the COVID-19 situation, some are noting that trade data for the first two months of 2020 indicate China is behind on the pace needed to meet their commitments under the phase-one trade deal to boost their imports of U.S. agricultural goods. The Trump administration over the next few weeks will give an assessment of the current phase-one developments. But public information is forthcoming on the deal, as the agreement calls for the U.S. and China to make "public disclosures" on "quarterly exports and imports of goods and services, no longer than 90 days after the end of each quarter." Indications are a call between U.S. and Chinese officials was postponed two weeks ago after U.S. President Donald Trump and Chinese President Xi Jinping were scheduled to talk via telephone March 27. U.S. officials are said to be remaining cautiously content with China’s progress towards buying American products and opening the domestic market to U.S. firms. However, there are still actions on the intellectual property front that China has not yet put in place that were agreed to in the -phase-one deal, according to a report in the South China Morning Post. Meanwhile, the China Agricultural Supply & Demand Estimates (CASDE) report released by their Ministry of Agriculture and Rural Affairs increased their forecast for 2019/20 corn imports to 4 million metric tons, up 1 mmt from their prior mark, citing the U.S.-China phase-one agreement.
| Rural Advocate News | Monday April 13, 2020 |
USDA’s Perdue Says Cattle Market Investigation Will Include COVID-19 Market Moves USDA Secretary Sonny Perdue said via Twitter that the agency would be expanding its investigation into cattle market activity to include the move-recent price movements that took place in the wake of the COVID-19 situation. “@USDA’s Packers and Stockyards Division will be extending our oversight to determine the causes of divergence between box and live beef prices, beginning with the Holcomb Fire in KS last summer and now with COVID-19,” Perdue said on social media. Scores of lawmakers have been pressing USDA to take the action after record moves in beef prices as consumer panic buying pushed up beef demand. But despite the increased dressed beef prices, live cattle prices actually declined. Sen. Chuck Grassley, R-Iowa, welcomed the action with his own tweet, saying, “After asking USDA to investigate price fixing by beef packers they announced today they will Farmers need to see USDA report as soon as possible Beef producers need help! Thx Scty Perdue & Pres Trump for hearing their concerns.”
| Rural Advocate News | Monday April 13, 2020 |
Monday Watch List Markets Coronavirus statistics are likely to be the first thing traders check after the three-day weekend. Weather and any reported progress among the world's oil producers to cut production are likely close items to follow. USDA's weekly report of grain export inspections is due out at 10 a.m., followed by a Crop Progress report at 3 p.m. with updates on corn and spring wheat planting and winter wheat crop conditions. Weather Monday features freezing conditions and possible damage to jointing wheat in the Southern Plains. We'll also see possibly severe thunderstorms in the Southeast. Other crop areas will be drier after a stormy weekend which featured northern snow and severe thunderstorms and tornadoes in the south. Fieldwork in northern crop areas is stranded after snow. Meanwhile, strong winds in the Midwest will hinder any fieldwork and transportation. Below normal temperatures are in store all week, further delaying planting.
| Rural Advocate News | Friday April 10, 2020 |
Cattle Market Investigation will now Expand Cattle groups and senators have been putting pressure on Ag Secretary Sonny Perdue, who responded to the pressure via Twitter. His tweet says the USDA’s Packers and Stockyards Division would expand its investigation into the cattle markets. The Hagstrom Report says the inquiry will now cover the cattle market conditions stretching from a summertime fire in Kansas last year up to the market conditions following the emergence of COVID-19. The National Cattlemen’s Beef Association had called for an investigation last Wednesday, with Perdue responding on the same day. NCBA President Marty Smith says, “I would like to thank President Trump and Secretary Perdue for their quick response to NCBA’s request to expand the agency’s investigation into the cattle markets.” He says they believe the investigation will restore cattle producers’ confidence in the market. They’re also looking forward to the agency’s recommendations on how to improve things in the industry. Senator Kevin Cramer of North Dakota pointed out that live cattle futures’ prices declined in March while prices for boxed beef sold to grocery stores rose. “The obvious price disparity is harmful not only to the consumer but also for our hardworking, honest cattlemen who just want a fair market,” Cramer says. ********************************************************************************************** Ethanol Production Numbers Highlight Steep Drop in Fuel Demand The U.S. ethanol industry is hurting due to the COVID-19 outbreak keeping most drivers off the road. Reuters says the industry has cut production more than it has in recent memory as fuel demand continues to plummet. The output of the corn-based biofuel fell off a cliff, dropping a record 20 percent to an average daily rate of 672,000 barrels. That’s the lowest production rate since the Energy Information Administration began publishing the weekly data in mid-2010. As expected, stockpiles jumped to a record 27 million barrels, underscoring the struggling demand. Federal regulations mandate that nearly every gallon of gas sold in the U.S. has about 10 percent ethanol. However, the worldwide virus outbreak drove oil prices lower amid a dispute between Russia and Saudi Arabia regarding production levels. Those factors have combined to make it impossible for ethanol makers to profitably produce their fuel. Dozens of plants have idled production or slowed way down, including POET, one of the industry’s top producers. Last week, POET said it idled production at three facilities in Iowa and South Dakota. ********************************************************************************************** USDA Releases April WASDE Report The April World Ag Supply and Demand Estimates from USDA show both corn and soybeans with higher ending stocks. The 2019-2020 corn outlook calls for reduced imports, greater feed and residual use, lower food, seed, and industrial use, as well as larger ending stocks. Ending stocks were raised 200 million bushels to 2.092 billion. The season-average price for corn dropped 20 cents to $3.60 a bushel. U.S. soybean numbers show lower exports, seed use, residual use, higher crush, and higher ending stocks. Higher crush will only partly offset the other lower numbers, bringing projected ending stocks to 480 million bushels, 55 million bushels higher than last month. The season-average soybean price is forecast to drop five cents to $8.65 a bushel. The wheat outlook expects lower exports, reduced domestic use, and increased ending stocks. The forecast now expects ending stocks of 970 million bushels, up 55 million from the previous month. The season-average farm price for wheat is up by five cents a bushel to $4.60. ********************************************************************************************** Meatpackers Close a Few Plants due to Coronavirus Fears of meatpacker employees contracting coronavirus due to the close conditions they work in have led to several facilities idling production in recent weeks. For example, Tyson Foods has temporarily ceased operations at its pork plant in Columbus Junction, Iowa, after two dozen employees were found positive with the coronavirus. Politico says at least three people who work in Tyson plants, as well as JBS USA, have died from the virus. However, there aren’t a large number of operations that have temporarily shuttered production or even scaled back. The CEO of JBS says he’s “100 percent confident” that his employees are safe at a beef plant in Greely (GREE-lee), Colorado. However, a longtime employee died after being hospitalized with the virus. The major meatpacking companies all say they’ve taken appropriate steps to abide by CDC recommended guidelines. The food industry has been deemed “essential” and continues to function amid the pandemic. “As employees have tested positive for COVID-19, the industry has been working with local health authorities and the Food Safety and Inspection Service to take immediate steps to quarantine, sanitize facilities, and prioritize the health and safety employees,” says Sarah Little, VP of Communications for the North American Meat Institute. ********************************************************************************************** Wisconsin Senator wants Farmers Eligible for SBA Grants, Forgivable Loans Wisconsin Senator Tammy Baldwin is calling on the administrator of the Small Business Administration to clarify that farms are eligible for both grants and loans. She wants to make sure farmers are eligible for the Economic Injury Disaster Loan Program, as well as guarantee they can get sufficient loans through the Paycheck Protection Program, which was created by the CARES Act. “The collapse in demand from the coronavirus pandemic has caught our farmers at a particularly challenging time because many have suffered for years from depressed prices and the uncertainty brought on by trade wars,” she says in the letter SBA Administrator Jovita (Joe-VEE-tah) Carranza. “The SBA’s Paycheck Protection Program and the $10,000 advances from the expanded Economic Injury Disaster Loan Program could provide much-needed relief for farmers, provided that the programs are implemented with the unique needs of agricultural businesses in mind.” The letter comes after the SBA issued guidance saying that farms could apply for the Paycheck Protection Program, regardless of income levels. Baldwin wants the SBA to go further and clarify that farmers are both eligible for Economic Injury Disaster Loans and have the option to use alternative calculations other than revenue, such as net earnings, that might provide greater loan values for farmers who need the help. ********************************************************************************************** Lots of Chicken Wings Available Thanks to Coronavirus The poultry market missed a big sales opportunity when the NCAA basketball tournament was canceled due to the coronavirus. The Washington Post says March Madness is the second of the two biggest annual events for wing sales, with the other being the Super Bowl. As the U.S. is asking citizens to stay at home to prevent further spread of the outbreak, the canceled basketball tournament means there is a whole bunch of chicken wings out there on the market. “That is a fact,” says Will Sawyer, lead animal protein economist at CoBank. “That’s real.” Wings are normally the most expensive part of the bird but haven’t been this cheap since September of 2011. They sold for close to two dollars a pound during this year’s Super Bowl. They’re now selling for half that amount. Poultry producers sold 1.24 million pounds of wings during the week the tournament was supposed to be held. Last week, they sold 433,000 pounds.
| Rural Advocate News | Thursday April 9, 2020 |
USDA Working on COVID-19 Aid Agriculture Secretary Sonny Perdue says the Department of Agriculture is working on a plan to allocate relief funds to farmers. In a call with reporters Wednesday, Perdue said the $14 billion allocated to the Commodity Credit Corporation, "would come later," however, noting the CCC has only $6 billion in borrowing authority currently. The CCC can borrow $30 billion per fiscal year, and with just $6 billion left, appears to have already allocated $24 billion. The additional $14 billion authorized by the CARES Act can't be used until July, according to USDA. Meanwhile, USDA is working to implement a plan to allocate the $9.5 billion emergency relief fund that was designated to the Office of the Agriculture Secretary. Perdue says USDA is holding daily meetings on the COVID-19 relief package for agriculture, including meeting with lawmakers. Perdue says he is hopeful a plan will be announced "sooner rather than later," while cautioning that the process of federal rulemaking takes time. ************************************************************************************ NCBA Requests President Trump Expand USDA Market Investigation The National Cattlemen’s Beef Association is asking the Department of Agriculture to further investigate the cattle and beef markets. NCBA President Marty Smith sent a letter to President Donald Trump on the matter Wednesday. The letter requests the government to act quickly to investigate the striking disparity between boxed beef prices and cattle prices in the futures and cash markets during the current COVID-19 crisis, and following the packing plant fire in Holcomb, Kansas, last August. In his letter, Smith requests President Trump to direct USDA to expand the ongoing investigation into market activity after the Holcomb fire to include current market volatility, “in the hope of identifying whether inappropriate influence occurred in the markets.” Smith says, “we need continued vigilance and oversight of all cattle market participants.” The letter also requests the Commodity Futures Trading Commission to study the influence of speculators on live and feeder cattle futures contracts to determine whether these contracts remain a useful risk-management tool for cattle producers. ************************************************************************************ Lawmakers Urge SBA to Provide Clear Guidance to Farmers Two U.S. Representatives from Wisconsin are asking the Trump administration to provide clear and direct guidance for dairy farmers accessing the new Paycheck Protection Program. Democrat Ron Kind and Republican Mike Gallagher sent a letter to the Small Business Administration and Treasury Secretary Steven Mnuchin seeking the guidance. Without additional guidance on PPP, many dairy operations could lose out on this vital lifeline and may not survive, according to the lawmakers. Representative Kind says, “The Administration needs to move quickly to ensure there aren’t any more delays for our small business owners and farmers,” calling the uncertainty “unacceptable.” The COVID-19 pandemic is continuing to threaten Wisconsin’s already struggling dairy economy, with some farmers being forced to dispose of thousands of gallons of fresh milk daily due to a drop in demand for dairy products typically consumed in schools, restaurants, and food services. For the past two years, Wisconsin has led the nation in farm bankruptcies with an average of two dairy farms closing a day. ************************************************************************************ Produce Industry Proposes Market Stabilization Program to USDA The United Fresh Produce Association and industry partners have presented a comprehensive Produce Market Stabilization Program to the Department of Agriculture. The proposal would immediately support critical financial needs in the produce supply chain. In addition, 108 members of Congress have sent a letter to USDA Secretary Sonny Perdue urging USDA to support the proposal. United Fresh President and CEO Tom Stenzel says the industry “has come together to support a consensus proposal to USDA, and Congress has come together to let our national decision-makers know how important this is across the country and every sector of our business." The proposal is a “roadmap” for how USDA can support the industry immediately. Next, United Fresh says, will come deep discussions and analysis within USDA in channeling resources to multiple interests. Stenzel says, "we believe there will have to be continuing additional financial relief from Congress if our economy is going to be able to pull out of this crisis and grow again." ************************************************************************************ Union Claims Poultry Industry Responded Slowly to Pandemic The Retail, Wholesale and Department Store Union says the poultry industry responded slowly to the COVID-19 pandemic. The Union says that over the past month, it has been imploring poultry industry employers like Tyson Foods, Equity Foods, JBS/Pilgrim's Pride, Koch Foods and Wayne Farms to implement critical standards to protect workers' safety and to secure the food supply chain. The industry's response, “for the most part has only been recent, sporadic and limited to a few locations, leaving most workers unprotected,” according to the union. The organization represents 10,000 workers across the southeastern United States, many in food processing and distribution. However, the National Chicken Council Wednesday said the industry is “doing everything they can” to keep workers safe and chicken on the shelves, in that order. National Chicken Council President Mike Brown says, “Our members are following all of the CDC and local health department guidelines, and many have consulted with infectious disease physicians to develop site plans.” ************************************************************************************ Forecast Runoff for Upper Missouri River Basin Lower After Warm Spring The water runoff forecast for the Missouri River basin is down slightly this month, though still projected near record highs. Gavins Point releases are forecast to remain near 35,000 cubic feet per second through the month of April. Runoff above Sioux City, Iowa, was 5.5 million acre feet in March, which is almost two times average. The above-average runoff was primarily due to plains snow melting over heavily saturated soils. Based on current soil moisture conditions, current plains and mountain snowpack, and long-term temperature and precipitation outlooks, the 2020 calendar year upper basin runoff forecast is now 35.5 million acre feet above Sioux City, Iowa. Although this forecast is a reduction of 1.4 million acre feet from the March 1 forecast, it is still in the top ten percent of the 122 years of runoff record. Soil moisture conditions continue to be very wet in much of the upper Missouri River Basin, increasing the potential for above-average runoff in the upper basin. The potential for flooding remains, particularly in the lower river stretches.
| Rural Advocate News | Thursday April 9, 2020 |
Washington Insider: Next Anti-coronavirus Step The political intrigues across Washington are deepening, POLITICO says, as Republicans move quickly to attempt to jam Democrats into accepting an extension of small business programs without addressing other Democratic priorities. A spokesman for Senate Minority Leader Schumer, D-N.Y., said there’s been no negotiations thus far with Schumer and Small Business Committee ranking member Sen. Ben Cardin, D-Md., on next steps. Treasury Secretary Steven Mnuchin said he's spoken to all four House and Senate party leaders about sending $250 billion to the program. And Senate Majority Leader McConnell, R-Ky., said he intends to pass new relief as soon as Thursday without a roll call vote. House Democratic leaders initially expressed private opposition to the idea. They have been resistant to piecemeal extensions and want additional money for state and local governments and an expansion of unemployment benefits for several more months. But Speaker Nancy Pelosi, D-Calif., seemed open to the idea of an extension on Tuesday as she told CNN that it was clear the small business program needs more funds immediately. But the speaker, said there would have to be "considerations" to ensure that women and minority-owned businesses had equal access to the funds. And, Democrats complained they were blindsided by tweets from Sen. Marco Rubio, R-Fla., about fast action and McConnell's statements. A spokesman for Schumer said the Democratic leader had not spoken to McConnell before the announcement, and that Rubio had not spoken to Cardin. "I was a little taken aback that Sen. McConnell made this announcement without talking to Sen. Schumer or anyone else on the Democratic side of the aisle," said Sen. Doug Jones, D-Ala., on Tuesday afternoon. "Just to announce that you’re going to do something is not the right approach. But I think everybody would support trying to do something for small business." With the Senate’s pro forma session scheduled for Thursday and the House scheduled for a Friday session, the Senate has an advantage simply on timing. Still, House Democrats said they felt jammed by McConnell’s Senate majority on the $2 trillion phase three bill proposed for passage this month and may look darkly on an attempt to one-up them again. It’s also possible that a single House member could object to passing the extension via voice vote and demand lawmakers fly back to Washington to vote in person, something congressional leaders desperately want to avoid. Similarly, a single senator could fight the plans. But one leading conservative, Sen. Mike Lee, R., Utah, would not fight a clean extension of the small business program, according to a person familiar with his thinking. Another conservative senator that sometimes objects to speedy passage of new spending, Rand Paul, R-Ky., did not have an immediate comment. And without quick action, Rubio warned that fear would hammer small businesses that are applying for the oversubscribed program. “We have days, NOT weeks to address this,” Rubio said. Pelosi made clear Tuesday that she considers Mnuchin's request an "interim package" and still plans to pursue another massive legislative package that would expand unemployment benefits, include another round of direct cash payments and increased funding for state and local governments. The small business program is popular and may actually be able to be extended without a roll call vote. That would defer debate on other ideas and allow the administration to hash out the unfolding crisis and the congressional response as the week unfolds. House Democrats will receive a coronavirus briefing from Vice President Mike Pence and other top officials on Wednesday, a rare moment of bipartisanship between the House majority and an administration it is often battling. Pence spokeswoman Katie Miller tweeted that the vice president would also do calls with House Republicans, Senate Democrats and Senate Republicans on Thursday. A major topic of the briefing is expected to be efforts by federal officials to deliver needed personal protective equipment to states whose hospitals need it. On Tuesday, senior administration officials said they are working with the private sector to ship “millions and millions” of masks. They also said they expected the United States would be able to deliver 100,000 new ventilators in the next 100 days and that testing has increased in the past four weeks from 2,500 tests a day to 125,000 tests a day. U.S. officials have been coordinating a fleet of cargo planes to bring face masks, gowns, gloves and ventilators from overseas to help replenish rapidly depleting U.S. supplies. But the overall effort has been beset by bureaucratic roadblocks, miscommunication and charges of political favoritism by state leaders, POLITICO said. Pelosi wants to begin working on a new more comprehensive bill immediately and is still talking as if the House could come back into session later this month to vote on it, although lawmakers are increasingly saying they think that’s untenable given the continued spread of the virus across the country. The California Democrat has also met resistance from some top Republicans, who want to wait, as multiple federal and state agencies are already struggling to implement the policies Congress just passed. So, we will see. It seems that election year fever is leading to “almost” bi-partisan efforts to counter the virus, although there almost certainly will be serious challenges from many directions as these policies unfold, Washington Insider believes.
| Rural Advocate News | Thursday April 9, 2020 |
Court Rejects Refiners’ Request for En Banc Hearing The 10th Circuit Court of Appeals has rejected the request by Wynnewood Refining Company and HollyFrontier Cheyenne Refining to rehear the case in which a three-judge panel ruled that three small refinery exemptions (SREs) granted for the 2016 compliance year were invalid. The court did not indicate why it rejected the request. The court said in its initial ruling that the law indicated the SREs were only available as extensions to companies that had received them in 2010. The matter could now be appealed to the Supreme Court but it is not known if the refineries will opt to pursue that. The Trump administration waffled on whether to appeal (request an en banc hearing by the full court) and did not opt to take that step. That lowered expectations that the refiners would be successful in their challenge of the decision. This shifts attention to EPA as they stated March 27, “EPA intends to develop an appropriate implementation and enforcement response to the 10th Circuit's decision in RFA v. EPA once appeals have been resolved and the court's mandate has been issued.” Expectations are that if EPA applies the decision nationwide, it would mean few refiners would qualify for SREs – reports indicate that only two or three would qualify. Currently, there are 25 SREs pending for the 2019 compliance year.
| Rural Advocate News | Thursday April 9, 2020 |
USDA Makes Clear Farmers Are Eligible For COVID SBA Loans USDA has released information stating that farmers do indeed qualify for the efforts in the third COVID-19 aid package relative to small business loans operated by the Small Business Administration (SBA), potentially increasing further the audience able to access the program. The third COVID-19 stimulus plan contained $349 billion for the Paycheck Protection Program (PPP). The PPP is a guaranteed loan program administered by SBA, according to USDA, noting that the “purpose of the program is to support small businesses and help support their payroll during the coronavirus situation.” USDA said that farmers are indeed eligible for the PPP loans. “Agricultural producers, farmers, and ranchers with 500 or fewer employees whose principal place of residence is in the United States are eligible,” USDA said. They noted that farmers are eligible if the farm has 500 or less employees, or it fits within the revenue-based sized standard, which is on average annual receipts of $1 million. USDA also noted a farm can qualify if “it meets SBA’s ‘alternative size standard.’” That standard currently states that “a maximum net worth of the business not more than $15 million, AND the average net income Federal income taxes of the business for the two full fiscal years before the date of the application be not more than $5 million.”
| Rural Advocate News | Wednesday April 8, 2020 |
Dairy Groups Unite to Ask Federal Government for Help The National Milk Producers Federation, the largest dairy organization in the U.S., as well as the International Dairy Foods Association, came together to ask for help. They sent a request for assistance to Ag Secretary Sonny Perdue. Jim Mulhern, President and CEO of NMPF, says, “As most of the country shelters in place and large swaths of the foodservice sector come to a standstill, dairy sales outside the retail channels have plummeted. Market prices have dropped rapidly, which has created a crushing economic outlook for producers of nutritious and necessary milk and dairy products.” The groups say no plan will fully remedy the losses; however, dairy is responding with a united plan that can help mitigate the damage caused by COVID-19. “Dairy industry discussions have led to a comprehensive action plan to address many of the key marketplace challenges created by the pandemic and we will present it to USDA,” Mulhern adds. “We understand the demands that USDA is under, but after five straight years of poor milk prices, they were just starting to rebound when the pandemic hit.” He says immediate actions by USDA are critical to helping people survive the market devastation that has occurred. ********************************************************************************************** Ethanol Industry in “Free-Fall” The ethanol industry is in an economic free-fall as fuel demand drops because of the COVID-19 outbreak. Governments around the world are urging or requiring their citizens to stay home as a means to help control the spread of the coronavirus. The Capital-Journal says as more and more individuals stay home, the demand for ethanol-blended gasoline continues to drop. The pandemic hit the ethanol industry at a time when it was already struggling because of poor market conditions. The industry had already endured a trade war with China, a glut of oil production that sent ethanol prices tumbling, as well as waivers from the Environmental Protection Agency that helped refineries use less ethanol. “The important context here is that a lot of the ethanol industry was hanging on by a string before the coronavirus hit,” says Brian Jennings, CEO of the American Coalition for Ethanol. “We’re seeing unprecedented demand destruction and 2020 is likely going to be a bloodbath for the industry.” The market upheaval has put thousands of ethanol jobs in jeopardy. It’s also hurt the pocketbooks of the tens of thousands of farmers who provide the corn that ethanol plants use to make the biofuel and its byproducts like dried distillers grains. The per-gallon price paid to ethanol producers dropped 37 percent from February to March. ********************************************************************************************** Farmer Sentiment Takes a Hit in March The Purdue University/CME Group Ag Economy Barometer took a dive in March, dropping 47 points from the previous month to a reading of 121. This was the biggest one-month drop in the history of the index, which dates back to late 2015. Declining agricultural commodity prices and the coronavirus impact on the U.S. economy and ag sector are what took down farmers’ previous optimism. This month’s decline in the index wipes out the improved sentiment that took place last fall and winter, leaving the index at the same reading it was in September of 2019. The Index of Current Conditions dropped 43 points, while the Index of Future Expectations went down 49 points during March. Both measures dropped by their largest amounts since the survey began collecting data back in 2015. The biggest reason for the drop is producers’ worry over what kind of impact the coronavirus outbreak will have on their farms in 2020. Coinciding with the coronavirus impact, a growing number of producers say they expect their farm’s financial performance in the upcoming year to be worse than last year. The weaker economic outlook also made farmers less optimistic about investing in their operations. ********************************************************************************************** Trump says China will Meet Its Obligations President Donald Trump gave what could be called a “qualified endorsement” of China’s attempts to meet its purchasing obligations under the Phase One Trade Deal. While commenting on the measures that the government is taking to protect the U.S. economy, agriculture came up in the conversation. The South China Morning Post quotes Trump as saying American farmers could expect some support from agricultural purchases that China will make as part of the agreement. “As of April 1, it seems like China is buying,” the president says. “We’ll let you know how that’s going, but they’re buying anywhere from $40 - $50 billion worth of our agricultural products, which will have a huge impact on our farmers.” Trump is confident that China will follow through because “I know and respect President Xi (ZHEE), and I think he’ll honor the deal that China made with us.” Without specifying who he talked to, Trump added, “In fact, I called up a while ago and asked how farmers are doing concerning China. Are they buying as anticipated?” Trump says the answer was “yeah, I think so.” He told reporters that the answer wasn’t the “most positive,” but it was at least starting. ********************************************************************************************** USDA Working on Aid for Livestock, Dairy, Specialty Crops Ag Secretary Sonny Perdue is working on developing aid programs for livestock, dairy, and specialty crop producers ahead of any aid to traditional commodity producers in the wake of the coronavirus outbreak. The Hagstrom Report says House Ag Committee Chair Collin Peterson spoke with Perdue, who told the chairman that he’s trying to develop systems to provide aid specifically for livestock, dairy, and specialty crop growers. Perdue also told Peterson he’ll “hold off” on any aid to commodity growers because they received significant payments earlier this year. Peterson also says the secretary told him he’s going to wait and see if crop producers will eventually need more aid. Perdue is currently having the chief economist and staff look across the different segments of the agricultural economy and try to determine which of the commodities have been hit hardest by the coronavirus. “They’re also looking at which ones will likely have the most damage going forward from here,” Peterson says. “USDA may come up with an aid system like last time, but the formula will be different. Facilitation payments won’t be based on trade, rather on the damage done by COVID-19.” Peterson is also concerned about the dairy industry, saying he supports reopening signup for the Dairy Margin Coverage Program. *********************************************************************************************** NASS to Re-Survey Producers with Previously Unharvested Corn, Soybeans The USDA’s National Agricultural Statistics Service will once again have follow-up work to do on the 2019 harvest. NASS will be contacting survey respondents in Michigan, Minnesota, South Dakota, and Wisconsin, who had previously reported unharvested corn and/or soybean acres. If the newly collected data make any changes necessary, NASS will update the January 10th estimates in the May 12th Crop Production Report. Stocks estimates are also subject to review since unharvested production is included in the estimate of on-farm stocks. When NASS originally surveyed producers in December for the Crop Production 2019 summary, there were significant unharvested acres of corn in Michigan, Minnesota, North Dakota, South Dakota, and Wisconsin; and there were unharvested soybean acres in Michigan, North Dakota, and Wisconsin. The unharvested acres were included in the January 10th report. NASS had originally said it would resurvey producers in January. However, because it wasn’t clear when producers would be able to get back into the field to finish harvest, the agency couldn’t set a re-survey date until now. Since there is still significant acreage left for harvest in North Dakota, producers there will be contacted at a later date.
| Rural Advocate News | Wednesday April 8, 2020 |
Washington Insider: Trade Policy and COVID-19 There has been considerable attention recently paid to the administration’s handling of the COVID-19 claims of shortages from hospitals on the front lines, Bloomberg says this week. This intensified last Friday when the administration imposed a ban on exports of N95 masks, surgical gloves and other protective equipment. Then, in response to global pushback, President Donald Trump said his administration was working to make sure that products made in the U.S. were used first to address the needs of Americans, but then later he reversed course on the protective gear. He said he had ordered the ban on exports after clashing with 3M over the company’s export of masks needed in the U.S. The company then warned that limits on its exports could lead to retaliation by other countries. The move to restrict exports came after dozens of other countries including China and the European Union have done the same in recent weeks. Bloomberg said that the U.S. standing as the world’s largest economy gave its actions greater weight. Allies also complained that America was simultaneously waging an aggressive campaign to out-bid other countries for supplies internationally. Together, the moves amount to new skirmishes in an economic war at the very time when international cooperation to combat the virus should be ruling the day. Also, Canadian officials scrambled over the weekend to try to convince the Trump administration to exempt their nation from any export ban. Those talks continued Monday with Secretary of State Mike Pompeo speaking with his counterpart. That move has drawn particular outrage in Canada because that country provides raw materials for masks made by American producers such as 3M and Honeywell. Ontario’s premier, Doug Ford, complained Monday that most of an order of 4 million masks that the Canadian province had placed with 3M was blocked at the border between the two countries after leaving the company’s plant in South Dakota. Only 500,000 masks were allowed into Ontario, which would cover the province’s needs for another week. Ford said he spoke with U.S. Trade Representative Robert Lighthizer about the issue Sunday and was continuing to press U.S. officials. “We’re putting pressure on the U.S. government from all sides. It’s absolutely critical that they exempt Canada from this presidential order,” he said. The European Commission, which imposed its own restrictions on exports March 15, has its own limits on exports, which require special permits for any protective equipment or ventilators leaving the bloc which is due to expire soon. In an interview with Bloomberg, the head of the World Trade Organization, Roberto Azevedo, said he was worried that the introduction of restrictions on trade could lead to others. “If one is in place, others copy,” he said. He also warned that such measures can cause “serious problems in the poorer and more vulnerable countries that typically rely heavily on imports for medical equipment.” WTO rules contain a key exception that permits its members to impose discriminatory trade restrictions as necessary to protect human health. But Azevedo said G20 nations needed to stick to a commitment made last month to keep any such measures “targeted, proportionate, transparent and temporary.” Chad Bown, a trade expert at the Peterson Institute for International Economics, said the administration’s move risked backfiring as the U.S. is still dependent on imports of protective equipment, which other countries could decide to hold back. In 2019, U.S. exports of N95 masks and other products covered by the ban amounted to about $1 billion, Bown said. Imports were worth about $6 billion. “This is just an incredibly short-sighted policy,” he said. “Of course, we need to acknowledge that there are shortages and other problems out there. But this policy is only going to exacerbate the shortages.” While the administration has blamed the shortages on the U.S. dependence on foreign manufacturing supply chains, critics of the administration’s initial slow response to the crisis say it has more to do with lack of planning and poor maintenance of strategic reserves meant to deal with a situation like a pandemic. Rep. Stephanie Murphy, D-Fla., on Monday said the Trump administration’s trade wars over the past two years had hurt the U.S. ability to access badly needed supplies and that those calling for additional trade measures risked damaging the American economy further. Murphy has called for the administration to lift tariffs on steel and other products, arguing that would help soften the blow of the recession now underway. The U.S. has repeatedly denied hijacking any cargoes destined for other countries. So, we will see. While the U.S. has moved recently to open up trade with China, the administration continues to feature a number of protectionist officials, including some very hard liners. Such policies are widely seen as threats by many ag producers who depend heavily on overseas markets and which should be watched closely as these debates emerge, Washington Insider believes.
| Rural Advocate News | Wednesday April 8, 2020 |
Ag Groups Highlight Transportation Issues Linked To COVID-19 Ships are getting hit with steep fees as the coronavirus slows trade and forces shipments to idle at docks, according to 80 groups representing ag and food shippers who want the White House to intervene. “These fundamentally unfair fees are frequently exorbitant in nature, even exceeding the negotiated freight rates in some cases, and render U.S. agriculture exports less competitive in the global markets,” the National Grain and Feed Association, National Chicken Council, U.S. Apple Association and other groups said in a letter to National Economic Council Director Larry Kudlow and USDA Secretary Sonny Perdue.
| Rural Advocate News | Wednesday April 8, 2020 |
Perdue Defends USDA’s MFP, Says Aid Via COVID-19 Package To Be ‘Fair’ USDA Secretary Sonny Perdue continues to insist that USDA’s efforts to help farmers via the Market Facilitation Program (MFP) have been fair. In a letter to Senate Ag Committee Ranking Member Debbie Stabenow, D-Mich., Perdue also noted that USDA will work “swiftly” to develop aid efforts via the third COVID-19 stimulus package. “We will again seek to implement a national program in a fair and equitable manner,” Perdue said. Stabenow has been openly critical of USDA’s MFP effort, arguing it has been regionally biased to southern growers. In the letter, Perdue points out that Stabenow’s reference to payment-rate inequities by county between regions is not on the mark as two thirds of the payments have gone to Midwest farmers.
| Rural Advocate News | Wednesday April 8, 2020 |
Wednesday Watch List Markets With social distancing restricting driving habits, the U.S. Energy Department's weekly inventory reports have attracted a larger audience lately. Wednesday's inventory reports are set for release at 9:30 a.m. CDT. The minutes from the latest Federal Reserve meeting are due out at 1 p.m. CDT. Otherwise, traders will continue to monitor the latest coronavirus statistics and watch for any news ahead of Thursday's OPEC meeting and WASDE report. Weather Wednesday features scattered light rain in the northern and eastern Midwest. Delta and Southeast areas will see broader coverage of light rain. Temperatures will be notably cooler north while conditions remain very warm central and south. A colder pattern is set to move through the entire central and eastern U.S. over the next week.
| Rural Advocate News | Tuesday April 7, 2020 |
Senators Seek Flexibility in FSA Loans Lawmakers are urging Agriculture Secretary Sonny Perdue to make temporary flexibilities on Farm Service Agency loans permanent for the duration of the COVID-19 pandemic. In a bipartisan letter signed by farm-state Senators, they urge Perdue to “take action to ensure the continuity of our country’s food supply and support rural areas during the coronavirus." The senators seek "needed relief" to farmers by the Agriculture Department, ensuring that the temporary flexibilities on farm loans recently announced by the FSA are made permanent for the duration of the pandemic and subsequent economic recovery, and also by ensuring adequate and equitable access to credit. The Senators also urge USDA to consider making emergency measures such as deadline extensions, loan payment deferrals, payment forbearance, and a full suspension of all current and pending foreclosure actions effective for the duration of the pandemic. In all, 43 Senators signed the letter, led by Senators Amy Klobuchar, a Democrat from Minnesota, and John Hoeven, a Republican from North Dakota. ************************************************************************************ Roberts, Stabenow Urge SBA to Provide Coronavirus Relief to Farmers and Ranchers Leadership of the Senate Agriculture Committee urges the Small Business Administration to ensure farmers and ranchers can access new loan programs created in the Coronavirus Aid, Relief, and Economic Security, or CARES Act. Chairman Pat Roberts, a Kansas Republican, and the Committee’s ranking Democrat Debbie Stabenow of Michigan penned a letter to the SBA, stating, "We must take quick action to aid farmers at a time when we need a stable and reliable food supply." The CARES Act created new and expanded eligibility for the Economic Injury Disaster Loan program to help small businesses during the coronavirus crisis. The Senators asked the Small Business Administration to immediately clarify and allow agricultural businesses and farms to apply for loans under this program. The CARES Act also created the Paycheck Protection Program to help businesses keep their workforce employed. An interpretation by the American Farm Bureau Federation suggests farmers are currently only eligible for the Paycheck Protection Program. ************************************************************************************ Pandemic Pushing Commodity Prices Lower From dairy farmers with nowhere to send their milk and cattle ranchers reeling from plummeting beef prices, the impact of the coronavirus is rippling through farm country. The American Farm Bureau Federation says corn, cotton and soybean futures have tumbled, ethanol plants have been idled, and some fruit and vegetable farmers are finding their best option is leaving produce in the field. In an economic analysis, AFBF says price forecasts for most agricultural products are bleak. In the past month, dairy prices have dropped 26-36 percent, corn futures have dropped by 14 percent, soybean futures are down eight percent and cotton futures have plummeted 31 percent. Meanwhile, Hog futures are down by 31 percent. A surge in demand for beef emptied grocery store meat aisles, but there is no lack of supply. Despite a rise in retail prices in some areas, the prices paid to cattle ranchers have fallen 25 percent. AFBF President Zippy Duvall. "After years of a down farm economy and damaging severe weather, the COVID-19 ripple effects are forcing farmers and ranchers to face heartbreaking financial realities.” ************************************************************************************ FDA Issues Temporary Policy Relaxing Egg Labelling Requirements The Food and Drug Administration is relaxing egg labeling and packaging requirements to meet consumer demands. Generally, egg cartons must include a statement of identity, the name and place of business of the manufacturer, packer or distributor, nutrition labeling, the net quality of contents and safe handling instructions. However, as a result of the COVID-19 pandemic, consumer demand for shell eggs has increased. Additional eggs for consumers are available, but appropriately labeled retail packaging is not available for all such eggs. To meet the increased demand for shell eggs in light of the limited availability of retail packaging, the FDA is providing temporary flexibility regarding certain packaging and labeling requirements so the industry can meet the increased consumer demand. FDA will allow egg sales without labels, but rather a sign or tag affixed to the product containing certain label requirements. The policy is intended to remain in effect only for the duration of the public health emergency related to COVID-19 declared by the Department of Health and Human Services. ************************************************************************************ Wisconsin Asking USDA to Take Action for Dairy Wisconsin lawmakers are seeking help for dairy from the Department of Agriculture. Last week, a coalition of Wisconsin lawmakers, led by Senate Democrat Tammy Baldwin, wrote Agriculture Secretary Sonny Perdue, seeking immediate action for Wisconsin dairy farmers and dairy processing businesses. Wisconsin dairy farmers have been forced to dispose of thousands of gallons of fresh milk a day as the demand for dairy products used in foodservice has rapidly switched to almost entirely at-home consumption. Specifically, the lawmakers ask Secretary Perdue to move cheese and dairy products from Wisconsin plants to consumers using several tools that Congress has provided USDA to help respond to times of crisis. Additionally, they seek funding for states to help them resolve supply chain disruptions and keep agricultural products and food moving to reach consumers when and where they need it. A third measure requested, the Wisconsin lawmakers are asking Secretary Perdue to Reopen enrollment for the Dairy Margin Coverage program and make payments retroactive to the beginning of the year. ************************************************************************************ Syngenta Accepting Entries for Seventh Annual #RootedinAg Contest Applications for the seventh annual Thrive #RootedinAg Contest are now open online. The #RootedinAg Contest gives people in the agriculture industry the opportunity to tell their story, according to Syngenta. The company will award three contest finalists with mini touch-screen tablets and one grand prizewinner with a $500 gift card, plus the opportunity to tell his or her story in Thrive magazine, complete with a professional photo shoot with the winner's ag mentor. In addition, the company will make a $1,000 donation to the winner's favorite local charity or civic organization. To enter this year's contest, interested candidates can visit the contest website and fill out the brief online entry form, which asks them to describe their ag mentor in one of two ways. Contestants can write a couple paragraphs and submit a photograph to support their entry or create a short video. The deadline to enter is June 30, 2020. To apply, learn more or see previous contest winners, go to www.SyngentaThrive.com.
| Rural Advocate News | Tuesday April 7, 2020 |
Washington Insider: The Fight for the Next Bailout The near congressional unanimity on the recent $2.2 trillion coronavirus rescue bill “has given way to partisan finger-pointing that has the potential to poison the debate,” Bloomberg reports. While the crisis has worsened since President Donald Trump signed the coronavirus aid law on March 27, there is little consensus on next steps as leaders extend the economic shutdown. Bloomberg notes that the president and Senate Minority Leader Chuck Schumer, D-N.Y., exchanged biting letters last weekend accusing each other of fumbling the initial response and that Senate Majority Leader Mitch McConnell, R-Ky., blamed Democrats for distracting the nation from an emerging threat. Speaker Nancy Pelosi, D-Calif., said the administration’s slow response has cost lives. The rancor continued to grow in spite of the fact that the number of Covid-19 cases in the U.S. has pushed past 368,000 and nearly 11,000 deaths with “government data began showing the pandemic’s rapid and widespread impact on the U.S. economy.” Meanwhile, the current rescue plan got off to a rocky start as small businesses struggled to submit documents and lenders ran into trouble with the government’s portal for loans. The increasingly alarming numbers prompted Speaker Pelosi to scale back her earlier ambitions for the next stimulus. She thinks Congress should “update” the current legislation to provide more money for small businesses and individuals and, over the weekend, said she wants the legislation to get a vote this month. At the same time, there is no consensus on what that package should look like. McConnell told the Associated Press that there will be a fourth virus-related bill but said he and Pelosi have “a little different point of view” about its timing and what should be included. Lawmakers in both parties are already proposing an assessment of the U.S. response to the outbreak, which exposed shortages of equipment and “faltering efforts of the federal government to get and distribute medical supplies where needed.” But the form that should take is the subject of continued partisan bickering. On Saturday, the president dismissed concerns over the rollout of a $349 billion program to assist small businesses rocked by the virus, saying loan distributions were “way ahead of schedule” even as banks struggled to respond to the flood of requests. “It’s been flawless so far,” he told reporters. “I don’t even hear of any glitch.” His rosy assessment came even as some small businesses worried that funds for the Paycheck Protection Program, a key element of the stimulus, might run out before loans are even approved. The president told the press on Sunday that he likes the concept of additional stimulus checks for individuals once the first round has been delivered. However, press reports began to circulate then that as the government confronts the worst economic disaster since the financial crisis in 2008, it could be hamstrung by vacancies among its political appointments. Of 20 Senate-confirmed positions reporting to the treasury secretary, seven aren’t filled, and four are occupied by acting officials. The domestic finance unit, which should be handling the brunt of the work tied to the pandemic, is notably empty, Bloomberg said. In addition, the president said over the weekend that he will nominate a White House lawyer to a newly created post of inspector general to oversee spending of the coronavirus stimulus and that he had chosen Brian Miller for the job, despite the president’s earlier questions about the authority of the position. Miller is now a special assistant to the president and a senior associate counsel in the White House Counsel’s office. Before that, he was an independent corporate monitor and an “expert witness.” He has worked at the Justice Department and was an assistant U.S. attorney in Virginia, the statement added. Meanwhile, Pelosi and Schumer urged the Treasury Department to move more quickly to help airlines to save industry jobs and refrain from imposing “unreasonable conditions” that might spur carriers to decline payroll assistance, a concern that has been raised by regional airline trade groups and flight-attendant unions. In a letter yesterday to Treasury Secretary Steven Mnuchin, Pelosi, Schumer and other Democrats stressed that provisions of the $2.2 trillion stimulus passed by Congress were aimed specifically at bolstering aviation jobs. Trump and Vice President Mike Pence insisted that they see signs the U.S. outbreak is beginning to level off or stabilize, citing a day-to-day reduction in deaths in New York. “We are beginning to see the glimmers of progress,” Pence said at a White House news conference. “The experts will tell me not to jump to any conclusions, and I’m not, but like your president I’m an optimistic person and I’m hopeful.” Pence said the government is starting to see “cases, and most importantly losses and hospitalizations, begin to stabilize.” So, we will see. The impacts of the virus are continuing to spread along with economic uncertainty. Government interventions appear to be helping but the toxic politicization across Washington obscures the outlook for future efforts, trends that should be watched closely by producers as this battle against the pandemic proceeds, Washington Insider believes.
| Rural Advocate News | Tuesday April 7, 2020 |
Ag and the SBA effort Much attention has been focused on whether agriculture operations can qualify as small businesses under the $349 billion in loans/guarantees in the third round of COVID-19 aid. The American Farm Bureau Federation on Friday revised its analysis of the Small Business Administration's (SBAs) Paycheck Protection Program Loans. “Based on our analysis of the IFR [interim final rule], we are pleased to confirm that the IFR removes the industry-specific revenue thresholds. Agriculture enterprises that employ 500 or less people whose principal place of residence is in the United States are eligible, regardless of revenue levels.” The group also sent a six-page letter to USDA Secretary Sonny Perdue detailing recommendations for spending the $23.5 billion that was included in the Phase 3 economic stimulus package, including aid to the ethanol sector ($14 billion in Commodity Credit Corporation (CCC) borrowing authority and $9.5 billion for USDA to provide help to producers of livestock (including dairy) and fresh fruit and vegetable growers and specialty-crop farmers).
| Rural Advocate News | Tuesday April 7, 2020 |
Both Canada And Mexico Say They Have Met Requirements On USMCA Top trade officials from Canada and Mexico have now said their countries have made the necessary changes in their regulations and laws needed for implementation of the U.S.-Mexico-Canada Agreement (USMCA). "This is an important step towards implementing this essential trade agreement," Deputy Prime Minister Chrystia Freeland said in a statement released Friday. "The Canadian government will continue to work with the United States and Mexican governments to determine an 'entry into force' date that is mutually beneficial." From Mexico, chief negotiator Jesus Seade said on Twitter that with the changes completed by Mexico, “we will have a modern instrument that will strengthen the competitiveness of the region and energize the trilateral relationship." As for timing, Freeland’s statement only mentioned that it would come into effect “later this year.” U.S. Trade Representative Robert Lighthizer said Friday at the White House that the U.S. is “on track with USMCA,” but did not provide any other comments relative to whether the U.S. has completed its work to pave the way to implement the deal. Provided the U.S. also completes its changes required for USMCA, the earliest the agreement could take effect is now July 1.
| Rural Advocate News | Tuesday April 7, 2020 |
Tuesday Watch List Markets Tuesday's only official report on the docket is one for U.S. consumer credit at 2 p.m. CDT. The usual topics of interest continue to be coronavirus statistics, OPEC's upcoming meeting and attempt to cut oil production, any grain trade announcements and the latest weather forecasts. Weather Tuesday will be dry across most primary crop areas except for scattered areas of rain in the eastern Midwest and Delta. Temperatures will be above to much above normal. This combination will favor field drying and fieldwork.
| Rural Advocate News | Monday April 6, 2020 |
CoBank Issues Report on COVID-19 Impact on Ag, Economy CoBank says the COVID-19 outbreak has brought the U.S. economy to a “screeching halt.” A quarterly report from the CoBank Knowledge Division has underscored the critically important nature of agriculture, as well as other industries essential to rural America. The U.S grains sector is still stuck in a rut, with pressure on commodity prices, weakening basis for both corn and soybeans in some markets, and export volatility likely for the next few months. While crop farming fundamentals remain challenging, ag retailers enter this year’s growing season on a relatively stable footing. Retailers say they’re optimistic about a full agronomy season, given the pent-up demand for fertilizer and crop protection products, especially after a wet and complicated fall application period last year. The U.S. chicken industry was optimistic heading into 2020 thanks to expected renewed exports to China. However, the shift to at-home eating because of COVID-19 has boosted chicken demand domestically. U.S. cattle has seen a swift and sharp decline in the last month. Chinese demand for U.S. hogs has set records, but it hasn’t led to strong prices or profit margins. Milk prices have fallen off due to COVID-19. Cotton prices have sunk to new lows despite strong exports due to fears of slower economic growth. Specialty crop growers face an even tighter labor situation this spring. ********************************************************************************************** Demand for U.S. Beef and Pork Strong in Overseas Markets Despite various travel bans and other restrictions, foreign markets still have a large number of consumers who want American pork and beef. Clay Eastwood is Director of International Marketing for the National Pork Board. She says the most recent export numbers for American pork include almost record-setting amounts. “January was the second-highest export month in history as we exported 515 million pounds of pork,” Eastwood says. “Of that number, 150 million pounds of pork went to China.” The Waterloo-Cedar Falls Courier says those numbers were posted ahead of the COVID-19 pandemic that hit China and other Asian countries before spreading to the rest of the globe. Eastwood says pork production was five percent higher in 2019, with early data showing that number may climb higher this year. Pork is continuing to find solid overseas demand in traditional trading partners like Mexico and Japan. Other nations like Australia and New Zealand are buying more pork than in recent years. Demand for U.S. pork is also higher in both Central and South America. As COVID-19 cases continue to drop in China, Eastwood expects that market to get even stronger through 2020. ********************************************************************************************** Coronavirus Disrupting Global Food Chain Reuters says the coronavirus outbreak is disrupting the global food supply chain and causing labor shortages in agriculture around the world. Panic buying by shoppers cleared supermarket shelves, creating a perception of food shortages. However, retailers and authorities say there are no underlying shortages and supplies of most products will be replenished. The logistics for getting food from the field to the plate are feeling the effects of COVID-19. In the short term, the lack of air freight and trucker shortages are slowing down fresh food deliveries. In the longer term, Reuters says a lack of available labor will affect planting and harvesting. If it goes on long enough, it could cause some shortages and rising prices for staple crops. As spring starts in Europe, farmers are trying to find enough workers to pick strawberries and asparagus, after border closures shut down the usual flow for migrant labor. Wide-scale crop losses are likely in India as a lockdown has sent large numbers of workers home, leaving farms and markets short as staple crops like wheat are almost ready for harvest. Food firms typically buy supplies in advance. However, long-term rising commodity prices will eventually be passed on to consumers. ********************************************************************************************** COVID-19 Shows Farm Labor System is Broken The coronavirus outbreak has exposed major flaws in the American farm labor system. Politico says that’s upping the pressure on the federal government to make migrant labor much more accessible to farmers. It also highlights a lack of health and safety protections for these “essential” workers. Farmworkers who are still planting and harvesting crops have a higher than normal risk of being infected because they typically live, work, and travel in crowded conditions. Most don’t have any form of healthcare. Meanwhile, farmers are worried that the closure of U.S. embassies, especially in Mexico, will slow the flow of migrant labor into the U.S. That will make an already chronic labor shortage on produce, livestock, and nursery operations across the country that much worse. Farm labor lobbyists see an opportunity to slide labor provisions into an expected fourth stimulus bill that would provide some relief. Also, because food production has been declared a critical industry under federal guidelines, agriculture employers are giving undocumented farmworkers letters stating that they’re “essential.” ********************************************************************************************** FDA Reassures Consumers That Food is Safe The Food and Drug Administration wants to once again reassure American consumers that food is available and safe to eat during the coronavirus outbreak. The FDA released a 30-second PSA last week designed to cut through confusion and misinformation about the food supply during the pandemic. It reiterates the message the FDA and the fresh produce industry has put out since the virus began to spread through the U.S.; there is no evidence of human or animal food or food packaging that’s transmitted the coronavirus. The Packer Dot Com says Frank Yiannas (YAH-nihs), Deputy FDA Commissioner, says the agency is working to ensure that the food supply chain is not disrupted. The agency is not anticipating there will be a need for food products to be recalled or withdrawn should someone who works in a store or processor test positive for COVID-19. The FDA has posted guidance on its website for consumers and food industry members. The agency is also talking with food industry leaders about any concerns they may have. Yiannas says the issues with keeping grocery shelves stocked are due to unprecedented demand, not a lack of capacity to produce, process, and deliver food. ********************************************************************************************** Beef Checkoff Offers Kid-Friendly Meals for Parents at Home As Americans are spending more time at home, parents may need some meal inspiration to keep the whole family happy. The Beef Checkoff is offering some help with recipes that everyone in the family can enjoy and even make together. Some of the family favorites the Beef Checkoff recommends include Personal Beef Pizzas. They only need four base ingredients and can be customized by each family member based on what’s on hand. Other recipes include a Chuckwagon Beef and Pasta Skillet, Cheeseburger Mac, as well as Peanut Butter, Chocolate-Hazelnut, and Chocolate Chip Beef Jerky Cookies. “BeefItsWhatsForDinner.com is a great resource for kid-friendly options that can be made with kitchen staples many families may already have on hand,” says Alisa Harrison, Senior Vice President of Global Marketing and Research at the National Cattlemen’s Beef Association. “These family favorites can help simplify dinner, lunch, or even snack time with easy prep and flavors that satisfy the whole family.” The website also has recipes that call for five ingredients or less and affordable meals under $15, as well as a full collection of cooking lessons. It even offers virtual farm and ranch tours to help educate kids when they’re being homeschooled.
| Rural Advocate News | Monday April 6, 2020 |
Washington Insider: Trade Policy Criticism Intensifies The Trump administration’s tariff-based trade policy has often been criticized, especially by sectors of the economy that have been the primary battlefields in continuing tariff fights. This week The Hill is carrying an OpEd by Jeff Rathke, president of the American Institute for Contemporary German Studies at John Hopkins University. Rathke served as a U.S. diplomat from 1991 to 2015. He says that American diplomacy has faced challenges from the start of the president’s administration: how to make his “America First” pledge an operational reality in a world that was “oriented for 70 years around U.S. alliances and American-made multilateral institutions.” Rathke thinks that clever minds on President Trump’s first national security team -- Defense Secretary Jim Mattis, Secretary of State Rex Tillerson and National Security Adviser H.R. McMaster -- sought to “square the circle” by defining America First as a calling to prevail in a world characterized by great power competition. This mainly meant China and Russia, though President Trump has never hesitated to throw Europe and other traditional U.S. allies into the basket of foes. “Great power competition” now suffuses American strategic documents and has become the touchstone of statements by officials trying to explain U.S. actions to the American public and the world. It worked for a time, as officials like Mattis drew from their deep reservoirs of personal credibility and experience to assure friends and allies that international leadership would be central to Washington’s approach to great power competition. However, Rathke thinks that the coronavirus pandemic exposes this framework as a rhetorical fig leaf rather than a plan for U.S. global action. He says, “the absence of American initiative to lead the international response to a global crisis is striking, as veterans of past administrations will recognize,” he says and charges that “the United States government is failing to address the systemic political disruptions of the COVID-19 outbreak and shape the world that will emerge from this crisis.” Great power competition is by definition a 24/7 affair. If the security and prosperity of the United States is threatened by the efforts of rivals to shift the global balance of power and to undermine existing institutions, then Washington’s response to crucial international issues must account for whether they will increase or decrease America’s ability to influence the world of today and the future. Rathke characterizes the principal U.S. international responses to the pandemic as “a bare-knuckle rhetorical offensive” that consisted—for weeks, such as the State Department putting “China” or “Wuhan” next to the word “virus” in as many sentences as possible. The result was a breakdown of U.S. leadership showcased by the inability of the U.S. to agree with the leading industrialized democracies in the G-7, normally our closest partners on almost any issue, in a Foreign Ministers’ statement last week. Instead of a U.S.-orchestrated demonstration of resolve and concrete coordinated measures to protect public health and preserve the advanced economies, the message was one of policy disarray. The Federal Reserve has stood out for its bold actions in addressing the financial impact of the pandemic, but that owes to the central bank’s independence and comes despite, not because of, the administration, Rathke says. He adds that, in recent days, Washington has pivoted to casting doubt on the Chinese government’s transparency on the coronavirus pandemic and criticizing Beijing’s attempts to exploit international opinion through questionable assistance. Those charges have merit, as the reports of possible data suppression and faulty Chinese equipment and test kits delivered to Europe show. But when the U.S. has been unable to provide crucial material support to its friends and allies, such criticisms have little weight. The crisis will not generate affection for China but it will bolster China’s leverage in ways that will affect world developments for years to come. Those in the U.S. who purport to see great power competition as the principal national security challenge have been remarkably unable to impact the U.S. government’s response. The greatest source of U.S. influence for decades has been the belief in Washington’s competence, backed up by American resources and confidence that the U.S. government would seek mutually beneficial outcomes even as it pursued its own national interest. In the biggest crisis yet confronted by the Trump presidency, American credibility is suffering an enormous blow, even on the terms of great power competition that the administration has set for itself. It will flatten the United States’ influence curve for many years to come. So, we will see. Rathke’s comments appear to sting, especially among producers who have watched hard-nosed tariff assaults threaten well established and profitable markets that they worked for years to build and expand -- assaults that now appear to be having little beneficial impact on the trade environment. Rathke’s diplomatic and highly nuanced language seems unlikely to resonate in most ag circles, but his criticism of the recent trade policy objectives may attract attention and should lead to discussion as the season progresses, Washington Insider believes.
| Rural Advocate News | Monday April 6, 2020 |
Biofuels Industry Asks USDA For Help The biofuel industry is asking USDA for funds from the Commodity Credit Corporation (CCC) to provide help for the industry as they weather negative margins amid slumping demand for motor fuels. In an April 1 letter to USDA Secretary Sonny Perdue, the Renewable Fuels Association (RFA) and others in the industry are seeking the action by USDA to offset a portion of corn and soybean purchases, or to provide direct assistance to companies to keep staff, according to the letter seen by Reuters. Those signing the letter argue the industry is facing “collapsing demand” for the biofuels and that about 3.5 billion gallons of annual ethanol capacity has been idled at a quarter of U.S. production facilities. CCC is a fund that USDA has available that provides the department with authorities to use the funding to aid U.S. agriculture. USDA used the CCC authority in deploying aid to farmers for trade damages – the Market Facilitation Program (MFP).
| Rural Advocate News | Monday April 6, 2020 |
US February Agricultural Exports Edged Lower While Imports Registered a Sharper Decline U.S. agricultural exports were at $11.31 billion in February, down from $11.44 billion in January, while U.S. ag imports were at $10.60 billion, down from $11.67 billion in January. That resulted in a trade surplus of $711 million after the sector had a deficit of $234 million in January. So far in fiscal year (FY) 2020, U.S. agricultural exports total $59.34 billion against imports of $54.25 billion for a surplus of $5.09 billion. In FY 2019, exports were at $57.72 billion against imports of $53.19 billion and a trade surplus of $4.53 billion. But for all of FY 2019, exports reached $135.54 billion against imports of a record $130.94 billion for a surplus of just $4.6 billion. We are entering into the period when U.S. ag imports typically are the strongest – they typically peak during the March-May period. In FY 2019, agriculture registered a record trade deficit of $871 million in April and a deficit of $255 million in May.
| Rural Advocate News | Monday April 6, 2020 |
Monday Watch List Markets As most Mondays have started lately, first attention will go to the latest coronavirus statistics as traders have learned to brace for bad news. Also of interest will be any updates on OPEC's plans, trade news that might pop up and the latest weather forecasts. USDA's weekly report of grain inspections is set for 10 a.m. CDT, followed by 2020's first Crop Progress report at 3 p.m. Weather Dry conditions will cover most primary crop areas Monday, except for light rain in portions of the western Midwest. Temperatures will be seasonal to above normal. This combination will allow for drying and fieldwork, including planting. Eastern Midwest planting is underway; much earlier than a year ago.
| Rural Advocate News | Friday April 3, 2020 |
Dairy Groups Ask USDA for Food Purchases, Dairy Farmer Relief A group of dairy organizations wrote a letter this week to Ag Secretary Sonny Perdue and asked the USDA to help the struggling dairy industry. They want the agency to use its extensive purchasing power given to it by the Coronavirus Aid, Relief, and Security Act, to alleviate at least some of the stress on the U.S. dairy industry. Approximately 80 percent of Americans are under orders to shelter in their homes. That means hundreds of thousands of restaurants, schools, and other foodservice outlets have either significantly reduced their offerings or shut down. That means cheese and butter manufacturers have lost their largest market segments. While retail sales have increased during recent weeks, those sales are now leveling off and orders are slowing down. Overseas markets have been decimated. The letter to Secretary Perdue asks USDA to focus on purchases of nonfat dry milk, as well as cheese, including cheddar, mozzarella, and other Italian-style cheese. They’re also asking USDA to look at different ways they have available to make farmers whole for the milk they’ve produced, but had to dispose of, or received drastically reduced payments. Some of the groups signing onto the letter include the Wisconsin Cheese Makers, Dairy Business Association, the Wisconsin Farm Bureau, and the Wisconsin Farmers Union. ********************************************************************************************** NCGA Wants Farmers to Prioritize Health Amid COVID-19 and Spring Planting The National Corn Growers Association is encouraging farmers to make a plan to stay healthy amid the COVID-19 outbreak and their upcoming spring planting. According to a recent farmer survey, 70 percent of them have no formal back-up plan if a key member of their family farming operation becomes ill with COVID-19. NCGA says even though most corn farms continue to be family-run operations with few employees or seasonal help, it’s still a good idea to get a basic plan in place. Some of their suggestions include scheduling a brainstorming meeting with all family and employees to discuss possible scenarios and solutions. Another key step is to minimize exposure to outsiders. Use the telephone, email, and text messages for communications with employees or contractors who don’t reside on the farm. Observe social distancing if someone has to come to the farm. Consider cross-training family members and employees on key farm functions and equipment operation. They also encourage farmers to increase sanitizing workspaces and make it a part of the daily routine on the farm. One of the most important things people can do is stay in the house if they get sick. If employees are sick, make sure to tell them to stay home. If a family member falls ill, they should isolate themselves as much as possible and not visit work areas. ********************************************************************************************** Grassley Asking for Investigation in Meatpackers Iowa Senator Chuck Grassley is calling on the U.S. Departments of Justice and Agriculture to investigate potential market manipulation and other illegal activity by meatpackers in the cattle industry. Grassley, a longtime advocate for agriculture in the Senate, says, “With the shelf prices of meat at record highs and the high rate of concentration in the meatpacking industry, there are concerns that the difference in these margins is the result of illegal practices.” Grassley sent a letter to Attorney General William Barr and USDA Secretary Sonny Perdue. In the letter, he cites repeated and numerous concerns raised by farmers and ranchers about possible illegal practices due to consolidation in the meatpacking industry. The senator is asking for both departments to investigate the serious allegations. “I request that you examine the current structure of the beef meatpacking industry and investigate potential market and price manipulation, collusion, and restrictions on competition, as well as any other potential unfair and deceptive practices under U.S. antitrust laws and the Packers and Stockyards Act,” he says in the letter. ********************************************************************************************** Farmer Share of Food Dollar Rises Slightly For each dollar spent on domestically-produced food, U.S. farmers received 14.6 cents for farm commodity sales during 2018. The USDA’s Economic Research Service says while it’s a small increase, the number did rise from 14.4 cents in 2017. It’s also the first measurable rise in the farmer share of the food dollar since 2011. The slight increase comes after the average prices U.S. farmers received in 2017 and 2018 were flat. A preliminary estimate in the farmer share of the food dollar also came out at 14.6 cents last year, but that number has been revised downward to 14.4 cents. The Economic Research Service uses input-output analysis to calculate the farm and marketing shares from a typical food dollar spent by U.S. consumers. That includes both foods bought at grocery stores as well as at dining-out establishments. The marketing share of the food dollar covers the cost of getting the food from farm to point of purchase. It includes the cost related to packaging, transporting, processing, and selling to consumers at grocery stores and dining-out businesses. Farmers receive a smaller share of the eating-out dollars because it costs more to prepare and serve meals, so more consumers eating out also drives the farm share of the food dollar lower. ********************************************************************************************** USDA Raises Import Limits on Sugar The USDA is about to publish a notice in the Federal Register raising the fiscal 2020 tariff-rate quota for raw cane sugar to 1.43 million metric tons. The agency will also just about double the low-duty quota for refined sugar to more than 373,000 metric tons. Ted McKinney, USDA Undersecretary for Trade and Foreign Ag, says the actions come after the “determination that additional supplies of raw cane and refined sugar are required in the U.S. market.” McKinney tells Politico that further adjustments for fiscal 2020 are still possible. Poor weather dragged down sugar production in Louisiana, one of the country’s key sugar cane-growing states. It also led to one of the worst sugar beet harvests in decades in states like Minnesota and North Dakota. In the meantime, Mexico, one of the top U.S. suppliers of sugar, has faced production problems of its own. USDA lowered its sugar production forecast in March to just over eight million short tons this year. That’s a decrease of 127,000 from the February forecast, and just about one million tons less than last year’s crop. ********************************************************************************************** China Wants More Hog Production, Still Seeing New ASF Cases The Chinese government is looking closely at African Swine Fever prevention measures, even as it pushes farmers to restore hog production to achieve its intended targets. Reuters reports that despite improvement in China’s containment of ASF, it still will take some time to restore pork output from hog stocks. The agriculture ministry told local governments in a video conference that frequent transportation of piglets and breeding sows has raised the risk of more disease outbreaks. Because of that risk, the ministry asked local governments to conduct strict investigations into the transportation of animals and crack down on irregularities, which includes the sale of pigs that have died from ASF. China has reported several new cases of swine fever this month, mostly as a result of transporting animals across various provinces. The ag ministry has launched a 60-day investigation into illegal transporting of hogs. In the meantime, the ministry says, “Each region should speed up their under-construction projects and replenish stocks in their small-to-medium-sized farms.”
| Rural Advocate News | Friday April 3, 2020 |
Washington Insider: Public Service Talk Sometimes the urban media try to push public spiritedness, and sometimes it helps. For example, Bloomberg reported this week that it thinks that “there’s no good reason for the COVID-19 pandemic to cause food shortages since the virus isn’t foodborne and supplies are generally adequate and the world’s appetite hasn’t abruptly increased.” This kind of hoarding happens and it can cause shortages, Bloomberg asserts, if only because some people needlessly buy too much food or sell too little out of concern about possible future threats. For example, look at what’s happened with toilet paper supplies in parts of the U.S., Bloomberg says. The report worries that shortage fears can be self-fulfilling, an idea it attributes to the sociologist Robert Merton in 1948. Hoarding is rational if you expect others to do it, the report says. Bloomberg goes so far as to worry that “bad talk” about shortages could trigger panic buying. The report notes and repeats that the world has plenty of food, but “a few trouble spots have appeared nonetheless.” For example, Kazakhstan, a supplier of wheat and flour to global markets banned exports of several products in mid-March including flour, carrots, sugar, and potatoes. Vietnam temporarily suspended new rice export contracts. Serbia has stopped the flow of its sunflower oil and other goods. Russia said it is “leaving the door open to shipment bans” and said it’s assessing the situation weekly. Other nations, from Cambodia to Ukraine, have also throttled food exports according to a senior researcher at the Peterson Institute for International Economics. Bloomberg opined that supply-restriction policies hurt local farmers far more than they do global buyers because they “damage shippers’ reputations for reliability.” The Kazakh Agriculture Ministry changed course on March 30, announcing that quotas would replace the ban for wheat and flour. In the meantime, the EU turned to jawboning to prevent suppliers from hoarding. “There is no global supply shortage at this time, and such measures are completely unjustified,” EU Trade Commissioner Phil Hogan told counterparts in the Group of 20 nations on March 30. The ministers promised to keep trading despite the pandemic and vowed to “guard against profiteering and unjustified price increases.” The International Food Policy Research Institute followed suit with a blog that said “COVID-19: Trade Restrictions Are Worst Possible Response to Safeguard Food Security.” The four authors warned of a repeat of 2008, when poor harvests, exacerbated by hoarding, caused shortages and contributed to a “serious price crisis.” Cargill, the U.S.-based food giant, said that “a standstill of any new protectionist measures and a rollback of existing barriers to trade would benefit farmers, ranchers, and consumers alike.” There’s no sign of panic buying so far in wheat, corn, soybeans, hogs, or cattle, Bloomberg said, but the price of rough rice rose on the Chicago Board of Trade, to 14.1 cents per pound, from 13 cents at the start of the year. It’s still way below the 24 cents a pound it reached in April 2008, the report said. Reliable information about the adequacy of supplies is another tool, in addition to peer pressure, to discourage hoarding, says Maximo Torero Cullen, chief economist at the United Nations-affiliated Food and Agriculture Organization in Rome. He’s been getting out the word that stocks of staple commodities are high and harvests have been good. To be sure, COVID-19 could cause greater numbers of the world’s poorest to go hungry, usually for reasons having nothing to do with hoarding, Bloomberg thinks. It points out that the COVID-19 outbreak has made clear is how finely-tuned food supply chains are. The demand for most products, from oranges to toilet paper, is quite steady and predictable, so supermarkets order just enough to meet the demand. When there’s a demand spike, such as the recent one, the shelves go bare quickly, says Rachel Croson, a supply chain expert who’s the new chief academic officer for the University of Minnesota system. Food shortages can emerge, she says, when people “seek to guarantee availability in a world where that guarantee isn’t really available. They order and order and order.” We’ve all seen the result of that. In general, the article identifies key vulnerabilities at the same time it reassures most U.S. consumers of the adequacy of food supplies. It also focuses on the need for reliable information and clear interpretation of trends in production, stocks and distribution -- services producers know well and understand. These are key characteristics of a well-organized, modern food system that producers should watch closely and support strongly as this crisis intensifies, Washington Insider believes.
| Rural Advocate News | Friday April 3, 2020 |
USDA Boosts Sugar Imports to Ease Tight Supplies USDA announced a series of actions relative to the U.S. sugar supply that will increase the tariff-rate quota (TRQ) for sugar imports in Fiscal Year (FY) 2020 by 550,000 short tons, raw value (STRV), including 350,000 tons of far sugar and 200,000 tons of refined sugar. The actions on the domestic front would transfer allocations from beet sugar processors with surplus allocation to those with deficit allocation. USDA is also reassigning 750,000 STRV in raw cane sugar imports already anticipated and said that the domestic cane sugar supplies are “inadequate to fill the FY 2020 cane sugar marketing allocations.” However, USDA emphasized “These FY 2020 sugar program actions will not prevent any domestic sugarcane or beet sugar processor from marketing all of its FY 2020 sugar supply.”
| Rural Advocate News | Friday April 3, 2020 |
Trump Addresses H-2 Farm Worker Situation President Donald has committed to continue admitting large numbers of H-2A foreign visa workers to take agricultural jobs in comments on the eve of the biggest rise in new jobless claims on record. During a press briefing on Wednesday, Trump suggested U.S. farms would not survive without a continuous flow of H-2A foreign visa workers who are brought to the country by farmers. “We want the farmers to be able to get people that have been working those farms for years, or we are not going to have farms,” Trump said. “So they are going to come in. And they are going to be given a certain pass and we are going to check them very, very closely — especially over the next month, because remember after a month or so once this passes, we are not going to have to be, hopefully, worried too much about the virus. But we want them to come in. We are not closing the border so that we cannot get any of those people to come in. They have been there for years and years, and I have given a commitment that they are going to continue to come or we are not going to have any farmers.” Acting Department of Homeland Security (DHS) Secretary Chad Wolf said his agency is considering “a number of different options with the H-2A workers” at the direction of Trump and Vice President Mike Pence. “Nothing to announce here today, but again, at the direction of the President and Vice President, we are looking at a variety of different options that I think we will have soon and be very beneficial,” Wolf said. The State Department recently announced they are waiving the in-person interview requirements for H-2A applicants that do not present a risk.
| Rural Advocate News | Friday April 3, 2020 |
Friday Watch List Markets Friday morning's reports will focus on the economic slowdown with U.S. nonfarm payrolls and unemployment due out at 7:30 a.m. CDT. The rest of traders' attention will turn to the latest coronavirus statistics and any news pertaining to OPEC or grain trade. Given the excessively bearish market climate, weather forecasts haven't gotten much respect lately, but are still important factors to monitor. Weather Friday will be a wet day from north to south in the western Midwest along with the southeastern Plains. Rain and mixed precipitation are in store, keeping soils wet and leading to some flood potential. Other crop areas will be dry. Warm conditions in eastern and southern areas will offer field work chances.
| Rural Advocate News | Thursday April 2, 2020 |
House Ag Launches COVID-19 Resources Webpage The House Agriculture Committee this week launched a COVID-19 resource webpage to provide information to the agriculture industry. The webpage includes resources and information for agriculture and nutrition, and will be updated as more information becomes available. House Agriculture Committee Chairman Collin Peterson of Minnesota says the page is a collection of updates, announcements and online resources detailing programs available to those affected by the pandemic, as well as adjustments made by USDA and other Federal agencies serving the food, agriculture and rural economic supply chain. Peterson also spoke with Agriculture Secretary Sonny Perdue this week, about volatility in the commodity markets, particularly for livestock and poultry industries, the bleak conditions for dairy farmers, and the status of the food supply chain. Peterson thanked Perdue and the Department of Agriculture "for their efforts to continue to monitor America's food supply and provide needed assistance and flexibility in this emergency." The page is available at agriculture.house.gov/covid19. ************************************************************************************ Lawmakers Ask Health Department to Send Aid to Rural Hospitals A coalition of lawmakers is asking the Health and Human Services Department to provide immediate assistance to rural hospitals and clinics. In a letter to Health and Human Services Secretary Alex Azar, 122 lawmakers asked the Trump administration to provide financial aid included in the CARES Act to help rural hospitals during the COVID-19 outbreak. The legislation includes new funding to provide financial relief for hospitals. The lawmakers point out that many rural hospitals have ceased performing elective procedures and seeing non-urgent patients. Lawmakers say the rural hospitals know the COVID-19 emergency confronting the U.S. must take precedence. However, these actions threaten rural hospitals’ financial viability. The letter states, “We are hearing from rural hospitals from across the country that have only days left of cash-on-hand – money needed for payroll and supplies.” The lawmakers say, “now it is up to the administration to respond with rapid action to sustain rural providers,” adding “any unnecessary delay will only worsen this situation.” ************************************************************************************ Grocery Industry Adapting to Temporary Norms Grocery stores and the food chain across the nation are adapting to the new normal, with shelter in place and work from home orders across the county. Doug Baker, industry relations vice president at The Food Industry Association, says in a blog post, "the industry is rewriting the playbook on crisis response in real-time.” To heighten personal safety and engender a deeper comfort level among associates and shoppers, retailers are using various tactics in their stores to implement the protocol of maintaining safe social distance. Every store looks different, so the measures retailers are taking vary depending on the unique needs of their setting. For example, some retailers are putting up stanchions and floor decals to indicate where shoppers should stand to help them measure the appropriate amount of space in queues and depending on the store. Additionally, stores are piloting “pick-up only” at some facilities. Baker adds, “Our industry is at its best when the public needs us the most.” ************************************************************************************ National Sorghum Producers Predicts More Acres than USDA Estimate The Prospective Planting report released this week by the Department of Agriculture indicates an 11 percent increase in sorghum acres for 2020. However, National Sorghum Producers says there is greater opportunity for increased sorghum acres in the United States for the 2020-2021 marketing year. When the analysis was conducted in February, sorghum prices did not reflect basis appreciation from export sales that occurred since that time. Significant purchase activity by China, approaching one million metric tons over the last seven weeks, has driven basis improvements, and these purchases account for roughly ten percent of the sorghum produced last year. Today, sorghum for export commands a 13 percent premium. These gains have been seen at interior country elevators, as well, with new crop basis gains of $0.20-$0.40 in the past two weeks. With these factors in mind, NSP says both domestic and international demand will continue to drive sorghum acres this spring. ************************************************************************************ Crop Year Rice Imports Projected at Record High Although rice is not considered a staple food in the United States, Americans are turning to the global rice market more than ever. The Agriculture Department's Economic Research Service says U.S. imports of rice now account for about one percent of the value of all U.S. agricultural imports. In 2019/20, U.S. rice imports are projected at 32.5 million hundredweight, up nine percent from a year earlier and the third consecutive record. Imports now account for more than 20 percent of the total domestic rice market, with two factors driving the recent records. First is a large increase in demand for Asian aromatic varieties, primarily jasmine rice from Thailand and basmati rice from India and Pakistan. These specific varieties are not grown in the United States and account for around 70 percent of U.S. rice imports. Second, Puerto Rico is importing cheaper rice from China, about eight percent of total U.S. rice imports, and largely replacing U.S. suppliers. Nearly all of China’s rice exports to Puerto Rico are from its Government-accumulated stocks of older rice that are sold at well below current trading prices. ************************************************************************************ STD Awareness Month Doesn’t Just Apply to Humans April is STD Awareness Month, and cows should not be left out of the conversation. Trichomoniasis, or trich, is a sexually transmitted disease that has the ability to cut a calf crop in half, according to Boehringer Ingelheim. Infected animals may show no outward signs, which is why trich often goes unnoticed until it’s too late. When bulls are infected with trich, it is considered a lifelong infection with no legal treatment. While cows can clear the disease, they will likely experience reproductive failures such as infertility and low pregnancy rates. Boehringer Ingelheim suggests producers take a moment during STD Awareness Month to learn about trich, and work with a veterinarian to put a prevention plan in place that includes testing, bull selection, record keeping, biosecurity measures and vaccination. Boehringer Ingelheim says it’s important to work with a veterinarian to develop management practices and a vaccination regimen to keep your herd STD free.
| Rural Advocate News | Thursday April 2, 2020 |
Washington Insider: Coronavirus Economic Hits It is clear that nothing is “business as usual” these days, especially concerning the economic outlook for U.S. states and businesses. Bloomberg called the results of the altered outlook a picture of “billion dollar blows.” The bad news is everywhere, Bloomberg said. For example, New York anticipates a loss of $10 billion to $15 billion in revenue, reflecting the State’s position at the epicenter of the outbreak. Ohio state agencies are looking to cut 20% in spending, and Cincinnati is furloughing 1,700 city workers. Georgia may have to renege on a $1,000 pay raise for teachers that state House lawmakers had budgeted for in the coming year. California is already dipping into reserves and has warned state agencies not to expect full funding next year. At this time, States, cities and counties are continuing to rely on revenue from taxes on income, sales of goods and even on gains from the stock market, all sources of money that the virus threatens to wipe out. Moody’s Analytics is advising policy makers to expect no less than a 10% hit to their general fund budgets, with the actual losses likely much larger for most states, said Dan White, the firm’s head of public sector research. That’s calculated off a baseline expectation that second quarter gross domestic product will decline 15% to 20% from a year earlier, “which is almost unprecedented,” he said. While the federal government’s $2.2 trillion economic stimulus package will reimburse states for some of the costs of responding to the virus outbreak, it doesn’t address the revenue problem, according to Fitch Ratings. And the unprecedented shutdowns in economic activity have made it difficult for revenue forecasters to predict what happens next. The economic shocks are likely to lead to a “very deep decline” in GDP during the second and third quarters followed by an improvement — whereas the slump was spread out over about nine quarters during the Great Recession, Moody’s White said. He said some states may call special sessions to update the budget. “They are scrambling. Best case scenario, they are going to be very cautious,” he said. The drop in state revenue could easily exceed the 11% drop that states saw in a two-year period after the 2008 recession, said Brian Sigritz, director of state fiscal studies for the National Association of State Budget Officers. While rainy day funds and reserves are at a peak, that won’t be enough for some states to cover the deficits in revenue, he said. “All states are going to be feeling the effects of this downturn,” he said. Sigritz said he expects the pinch to be felt in usually-smaller revenue sources like gasoline taxes as people drive less and gaming taxes as casinos are shuttered. “The numbers are what the numbers are,” New York Governor Andrew Cuomo said of the state budget Tuesday. “The numbers don’t lie, the numbers leave you few alternatives.” Cuomo said he’s not counting on federal funds to balance the budget. New York already was facing a projected $6 billion budget gap when Cuomo released his $178 billion spending proposal in January that was expected to reflect significant health-care savings. At least 38 states and territories have issued some version of a stay-at-home order, shuttering parts of the economy as residents stay inside and restaurants and stores close. The result may be the steepest drop in sales taxes ever, according to the Institute on Taxation and Economic Policy, a left-leaning think tank. States like Florida, Texas and Washington are especially susceptible to the declines because the states derive over half of their revenue from sales and excise taxes, while the average is 35%, according to the group’s 2018 report. And, while the budget outlook is raising anxiety levels for many U.S. officials, President Trump observed that timing is good now for a massive infrastructure bill, a measure to fund construction and repairs of roads, bridges, railroads or other public works projects—because interest rates very low. “With interest rates for the United States being at zero, this is the time to do our decades long awaited Infrastructure Bill,” the President said. Bloomberg noted that the president has long advocated for an infrastructure plan but has never settled on how to finance it. Speaking at a coronavirus briefing, the president said low rates would allow the country to borrow cheaply for a new program and asserted that infrastructure spending could help blunt the surge in unemployment and businesses failures expected to result from the coronavirus pandemic and economic shutdown. So, we will see. The president’s comments came as both parties increasingly raised proposals for “phase 4” follow-on legislation to support federal supports of many kinds. Now, the economic uncertainty continues to rise amid a combination of economic urgency and rising uncertainty which producers should watch closely as these challenges intensify, Washington Insider believes.
| Rural Advocate News | Thursday April 2, 2020 |
CCC Loan Interest Rates Slashed The actions by the Fed have now translated into a rather direct impact for agriculture, reduced borrowing costs for those getting Marketing Assistance Loans (MALs) from the Farm Service Agency (FSA). The interest rate on commodity loans disbursed in April will be 1.625%, down from 2.5% in March. Plus the stimulus package extends the maturity on the loans for an additional three months, taking it to 12 months. Rates on Farm Storage Facility Loans (FSFLs) also declined markedly for April, falling to 0.75% to 1.25%, depending on the length of the loan, after those were at 1.375% to 1.625% in March.
| Rural Advocate News | Thursday April 2, 2020 |
USMCA Start Appears Now Pushed Back To At Least July 1 While there has been no official comment from the Office of the U.S. Trade Representative (USTR), it does not appear that the U.S., Canada and Mexico notified each other via letters that they have taken the needed shifts to laws and regulations to align those with provisions of the U.S.-Mexico-Canada Agreement (USMCA). The agreement cannot enter into force until the first day of the third month following the last notification from the three countries they have met their obligations. That suggests that the earliest the deal could now take effect is July 1. Several key lawmakers had called on USTR to push back their announced intention that USMCA will start on June 1.
| Rural Advocate News | Thursday April 2, 2020 |
Thursday Watch List Markets Thursday morning's reports will be familiar: weekly export sales, U.S. jobless claims and an update of the U.S. Drought Monitor all come out at 7:30 a.m. CDT, also joined by a monthly report of the U.S. trade deficit. The Energy Department provides weekly natural gas inventory at 9:30 a.m. Coronavirus statistics, weather and any trade news also remain important topics of interest. Weather Thursday features a winter storm system with very cold conditions, ice, snow and strong winds in the Northern and central Plains and portions of the western Midwest. The storm and its effects will delay spring field work for possibly two weeks, along with causing safety issues and livestock stress. The remainder of the western Midwest through south-central Plains will have light to moderate rain, bringing delays to field work. Other crop areas will be dry.
| Rural Advocate News | Wednesday April 1, 2020 |
USDA Releases Perspective Plantings Report Producers surveyed across the United States intend to plant an estimated 97.0 million acres of corn in 2020, up eight percent from last year. The Agriculture Department's National Agricultural Statistics Survey released its Prospective Planting report Tuesday. The report says planted acreage intentions for corn are up or unchanged in 38 of the 48 estimating states. Soybean growers intend to plant 83.5 million acres in 2020, up ten percent from last year, the third-highest planted acreage on record. Compared with last year, planted acreage is expected to be up or unchanged in 22 of the 29 states estimated. NASS also released the quarterly Grain Stocks report as of March 1. The report says corn stocks totaled 7.95 billion bushels, down eight percent from the same time last year. On-farm corn stocks were down 13 percent from a year ago, but off-farm stocks were up less than one percent. And, Soybeans stored totaled 2.25 billion bushels, down 17 percent. On-farm soybean stocks were down 20 percent, while off-farm stocks were down 15 percent. ************************************************************************************ Farm Journal Releases Poll on COVID-19 Impact A poll by Farm Journal shows farmers and ranchers are concerned about uncertainty in commodity markets, the financial stability of their businesses, and the health of their families, and their workforce. The poll gaged farmer responses regarding top issues surrounding the COVID-19 pandemic. Survey results show 90 percent of farmers and ranchers say they expect COVID-19 to impact their business. While only 30 percent have a fear of becoming sick themselves, many expressed concerns about family and friends in higher risk categories. One-third of respondents said they've been directly impacted by the disease. Farm Journal's Charlene Finck says, “Planting crops, maintaining dairy operations and other agricultural work is critical to our national security and social well-being,” adding, “We will get through these uncertain times together." Agriculture is naturally designated as an essential or critical industry for the nation, as the farm workforce helps to feed the nation, during the COVID-19 pandemic. ************************************************************************************ DOT and EPA Issue Final Safer Affordable Fuel-Efficient Vehicles Rule The Department of Transportation and Environmental Protection Agency released final emissions rules Tuesday. The agencies will change the Safer Affordable Fuel-Efficient Vehicles Rule setting corporate fuel economy and CO2 emissions standards, known as CAFÉ standards, for model years 2021-2026 passenger cars and light trucks. The final rule will increase stringency of CAFE and CO2 emissions standards by 1.5 percent each year through model year 2026, as compared with the standards issued in 2012, which would have required about five percent annual increases. EPA Administrator Andrew Wheeler says the final rule “puts in place a sensible national program that strikes the right regulatory balance that protects our environment and sets reasonable targets for the auto industry.” Meeting the previous CAFÉ standards were seen as a way to increase biofuel demand. Under the SAFE Rule, the projected overall industry average required fuel economy is 40.4 miles per gallon, compared to 46.7 projected requirements for model year 2025 under the 2012 standards. ************************************************************************************ NASS to Host Virtual Annual USDA Data Users’ Meeting The Department of Agriculture’s National Agricultural Statistics Service will host its annual USDA Data Users’ Meeting virtually later this month. The event is one of many that have opted to go virtual amid the ongoing global COVID-19 pandemic. Planned for Tuesday, April 21, the event is regularly held to share recent and pending program changes, and to solicit comments and input on various data and information programs important to agriculture. Usually held in person, the online Data Users’ Meeting remains free of charge and open to the public and will take place from 1:00-3:30 p.m. (ET). The meeting is organized by NASS in cooperation with the World Agricultural Outlook Board, Farm Service Agency, Economic Research Service, Agricultural Marketing Service, Foreign Agricultural Service, and the U.S. Census Bureau. Leaders from each agency will provide an overview of current issues and then take questions and comments. Registration and participation information is available at www.nass.usda.gov. ************************************************************************************ No World Pork Expo for Second Straight Year For the second-straight year, the National Pork Producers Council has canceled the World Pork Expo. Canceled last year to avoid the spread of African swine fever, this year's event is one of many interrupted by the global COVID-19 pandemic. NPPC announced the cancellation early this week due to COVID-19 human health concerns. NPPC President Howard "A.V." Roth says, while disappointing, canceling the event allows "producers and others across the industry to focus on the essential role we play in the nation's food supply system at this critical time." Roth says NPPC will “do our part to support the nation's transition back to normalcy and look forward to making next year's World Pork Expo better than ever.” World Pork Expo is the world's largest pork-specific trade show, where more than 20,000 industry professionals gather for three days to showcase innovations, introduce new products and participate in training and educational programs. World Pork Expo 2021 is scheduled for June 9-11 at the Iowa State Fairgrounds. ************************************************************************************ DFA Named Winning Bidder for Dean Foods Assets Dean Foods announced Tuesday Dairy Farmers of America as the winning bidder to acquire a substantial portion of Dean Foods' business operations. In a statement, Dean Foods says. "We ran a competitive auction process and are pleased to have reached these agreements." The two previously reached an agreement in February before withdrawing the plan to favor a competitive bidding process. DFA will acquire the assets, rights, interests, and properties relating to 44 of the company’s fluid and frozen facilities for $433 million. In addition, as part of the court-supervised sale process, Dean Foods has designated Prairie Farms Dairy as the winner of the assets, rights, interests, and properties relating to eight additional facilities, two distribution branches and certain other assets for $75 million in cash. Dean Foods has designated Mana Saves McArthur, LLC, and Producers Dairy Foods as winning bidders for the sale of the facilities located in Miami, Florida and Reno, Nevada, respectively. Harmoni, Inc. has been designated as the winning bidder for the Uncle Matt’s business.
| Rural Advocate News | Wednesday April 1, 2020 |
Washington Insider: The Federal Farm Rescue POLITICO is reporting this week that the administration will inject tens of billions of dollars into the farm economy to prop up struggling corners of the sector after “years of trade pain, weather disasters and now a global pandemic and looming recession.” However, the report notes that the aid comes with few strings attached and distributing it evenly “could prove challenging.” In addition, there are additional federal efforts underway that affect agriculture including EPA plans to extend the deadline for oil refiners to prove their compliance with biofuel blending rules and says it won’t investigate or act on blending exemptions. Instead, it will focus on higher priorities and wait for a major court case on refinery waivers to play out, the report said. POLITICO also notes that managing the $23 billion in extra aid for agriculture may be a “challenge,” for USDA. Already Democrats have worried publicly that USDA might set up another “slush fund” to disperse funds across the industry POLITICO said. That mistrust stemmed in part from how the administration designed its earlier trade bailout program, which critics claimed unfairly benefited Southern states, wealthy farmers and even foreign meatpackers. “We’ll be monitoring implementation to hold USDA accountable for distributing aid fairly and encourage USDA to follow the bipartisan payment limits set by the farm bill,” said a spokesperson for Senate Ag ranking member Debbie Stabenow, D., Mich. Joseph Glauber, former USDA chief economist, told POLITICO the stimulus funds, trade aid and traditional farm subsidies could total around $50 billion in fiscal 2020 alone, “an unprecedented amount, to say the least,” said Glauber, now a senior research fellow at the International Food Policy Research Institute. Implementing the farm stimulus plan could prove even trickier than the trade bailout, which was based on the tariff damage to specific commodities and counties. “I am not sure how you would separate out price impacts from COVID-19 versus other market factors,” Glauber said. “My guess is that the distribution and amounts will look a lot like 2019.” In addition, EPA on Friday announced a series of “steps to protect the availability of gasoline during the COVID-19 pandemic,” including several moves to delay enforcement of biofuel blending requirements under the Renewable Fuel Standard. The agency said it intends to extend the March 31 compliance date to give small oil refiners more flexibility to meet their RFS requirements, with more details to come. The coronavirus and efforts to contain it have caused a steep drop in demand for gasoline as people stay home, POLITICO said. The ripple effect has reached biofuel makers, whose products are blended by oil refiners into the gasoline pool. The EPA also emphasized that it will develop an “appropriate” response to a January court ruling, which struck down a trio of refinery waivers and threatened to undermine many more, once the appeals process has played out. Biofuel groups have pressed the White House to apply that court decision nationwide, wiping out any waivers that hadn’t been continuously maintained since the program was created more than a decade ago. Brian Jennings, CEO of the American Coalition for Ethanol, said it’s “disappointing to learn the agency prefers to punt this decision” until after the legal appeal by two refiners is resolved. “The economic fallout of COVID-19 is doing substantial damage to the ethanol industry and we expect the administration to leave no stone unturned in responding instead of only benefiting oil at the expense of rural America,” he said. POLITICO also said that the president rejected a Wall Street Journal report that the federal government might stop collecting duties for three months to help hard-hit companies weather the economic storm. At a White House briefing on Friday, the president called the report “just more fake news.” In addition, the administration has left trade war duties in place on more than $350 billion in Chinese goods, in addition to steel and aluminum tariffs on China, the EU and many other nations. The US collected nearly $72 billion in tariffs in fiscal 2019, up from $41.6 billion the prior year. The ag stimulus includes $300 million earmarked for the seafood industry, including commercial and charter fishermen. But seafood sellers have another problem: Without federal action, thousands of seasonal workers in Alaska processing plants for pollock will soon need to go back to their home country before returning for salmon season this summer, the Wall Street Journal reported. So, we will see. The combined impacts of the fall elections and the COVID-19 virus mean the demand for new and old market interventions is almost unending and will affect most of the economy and, certainly much of agriculture. These are issues producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday April 1, 2020 |
USDA’s Perdue Insists US Food Supply Is Solid USDA Secretary Sonny Perdue Monday said that the US food supply is sound despite the COVID-19 situation. In remarks on Fox Business’ Mornings With Maria, Perdue said, “We have a very complex food supply chain, from those vendors that supply our farmers with the tools and inputs they need to grow the crops — and then after that, it has to be harvested and processed. ... It is a very complex supply chain. Fortunately, it is sound, it is stable. And I think the demand surge we saw a couple weeks ago — we are seeing shelves replenished. I think that gives people a sense of calm when they go in the grocery stores and see the replenishment there.”
| Rural Advocate News | Wednesday April 1, 2020 |
Key Lawmakers Call For Administration to Reconsider June 1 USMCA Start Delaying the Trump administration’s planned June 1 implementation date for the US-Mexico-Canada Agreement (USMCA) is being called for by a bipartisan group of Senate Finance Committee members. “A long experience of incomplete and inadequate implementation by trade agreement partners has taught us that the United States must do this work on the front end to ensure that the words on paper deliver genuine benefits to Americans, including our farmers, workers, and businesses,” the letter said. “We urge you to seriously reconsider the proposed June 1 entry into force of USMCA, particularly in light of the significant public health crisis and supply chain disruptions caused by COVID-19.” But even without the COVID-19 situation, the lawmakers said the June 1 deadline would be “highly aggressive, and raises questions as to whether businesses have the information they need to adjust to the new rules and comply by that date.” They also cited both Trade Promotion Authority (TPA) provisions and the USMCA Implementation Act as preventing the agreement from coming into force before Canada and Mexico show their “full adherence” to their USMCA commitments. While Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and Ranking Member Ron Wyden, D-Ore., signed the letter, not all members of the panel from both parties signed onto the effort.
| Rural Advocate News | Wednesday April 1, 2020 |
Wednesday Watch List Markets With continuous attention on rising coronavirus statistics, the market may not be in the mood for much fun on April fool's day. Wednesday's energy inventory reports from the U.S. Energy Department at 9:30 a.m. CDT have an increased audience these days, providing clues of gasoline demand and ethanol production. Economic reports include ADP employment at 7:15 a.m. and ISM's index of U.S. manufacturing at 9 a.m. A Fats and Oils report from NASS concludes the day's scheduled reports at 2 p.m. CDT. Weather A rain-snow combination is in store for the Northern Plains Wednesday, hindering late-corn harvest efforts and causing livestock stress. Cold conditions are also on tap for the northwestern Plains into the western Canadian Prairies. Other crop areas will be dry except for light rain in portions of the western Midwest.
| Rural Advocate News | Tuesday March 31, 2020 |
Rep. Harder Seeks Ag Advisor on White House Coronavirus Task Force One lawmaker wants an ag expert on the White House Coronavirus Task Force. U.S. Representative Josh Harder, a Democrat from California, recently penned a letter to the Trump administration asking that the task force include someone who can represent agriculture. Specifically, Harder says appointing a member that can “knowledgeably advocate on behalf of our producers, consumers and distributors” will ensure families have access to the food they need during the pandemic. The letter states farmers are already seeing the impact of the COVID-19 pandemic, including volatile markets, and losing the certainty of a healthy workforce, along with potential shortages of personal protective equipment. Representative Harder’s office has heard concerns from agriculture about the availability of masks and gloves for workers as well as the availability of migrant labor. Harder says he has also heard from consumers concerned about bare shelves at supermarkets. Having an agriculture representative on the task force, Harder says, “will help to ensure all these concerns are addressed.” ************************************************************************************ Consumers Increase Online Grocery Orders During Outbreak Consumers are ordering more goods and groceries online during the COVID-19 pandemic. Grocery Dive, a web-based grocery industry publication, reports 31 percent of U.S. households have used online grocery services over the past month. Out of those surveyed, 26 percent of consumers report using grocery delivery and pick-up services for the first time, and 39 percent of 60 and older consumers say the same. The report is based on a survey of more than 1,600 U.S. adults. The pandemic may permanently alter consumer activity, as buyers are seeking to avoid crowds at grocery stores to follow social distancing guidelines. However, current pick-up and delivery infrastructure is not meeting the demands. Amazon’s Prime Pantry temporarily shut down, and many grocery stores offering the services are scheduling appointments days after the order, compared with same day or next day options. Meanwhile, last week, several online providers, including DoorDash, announced they would waive delivery fees for shoppers 60 and older. ************************************************************************************ USDA Announces No Actions Under Feedstock Flexibility Program The Department of Agriculture Commodity Credit Corporation announced Monday it does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2019, which runs from October 1, 2019, to September 30, 2020. The CCC is required by law to quarterly announce estimates of sugar to be purchased and sold under the Feedstock Flexibility Program based on crop and consumption forecasts. Federal law allows sugar processors to obtain loans from USDA with maturities of up to nine months when the sugarcane or sugar beet harvest begins. On loan maturity, the sugar processor may repay the loan in full or forfeit the collateral sugar to USDA to satisfy the loan. Congress reauthorized the Feedstock Flexibility Program in the 2018 Farm Bill as an option to avoid sugar forfeitures. USDA's March 10, 2020, World Agricultural Supply and Demand Estimates report projects that fiscal year 2020 U.S. ending sugar stocks are unlikely to lead to forfeitures. ************************************************************************************ USDA Extends ReConnect Application Deadline to April 15 The Department of Agriculture has extended the deadline for ReConnect Pilot Program applications to April 15. Deputy undersecretary for Rural Development Bette Brand announced the extension Monday, saying the move is “in light of the COVID-19 National Emergency.” The extension allows rural businesses, cooperatives, and communities extra time to apply for assistance that will help bring high-speed broadband connectivity to rural communities. USDA received 146 applications between May 31, 2019, and July 12, 2019, requesting $1.4 billion in funding across all three ReConnect Program funding products, 100 percent loan, 100 percent grant, and loan-grant combinations. USDA is reviewing applications and announcing approved projects on a rolling basis. Additional investments in all three categories will be made in the coming weeks. These grants, loans and combination funds enable the federal government to partner with the private sector and rural communities to build modern broadband infrastructure in areas with insufficient internet service. ************************************************************************************ State Beef Councils Win Major Legal Victory The Beef Checkoff program and fifteen grassroots-led state beef councils won a major court victory last week. The United States District Court of Montana ruled in favor of USDA and the Montana Beef Council in the matter of R-CALF vs. Sonny Perdue and USDA. The National Cattlemen’s Beef Association praised the court’s decision, which ends a legal battle that has spanned more than three years and interrupted beef promotion functions in Montana. NCBA says the case had threatened local input and promotion efforts at the state level across the country. NCBA CEO Colin Woodall says the victory “goes a long way toward ensuring” Beef Checkoff investments continue. He says the foundation of the Beef Checkoff has always been state beef councils that collect checkoff funds and determine how those investments are used for research, marketing and promotion efforts in individual states. Woodall emphasized that NCBA will continue to stand with state beef councils whose work is crucial to the beef industry. ************************************************************************************ National Average Gas Price Drops Below $1.99 GasBuddy reports the U.S. national average for gasoline has fallen to $1.99 per gallon, the first time since March 23, 2016. The national average could even dip to $1.49 by mid-April, the lowest since 2004, with potentially hundreds of stations pushing their price to 99 cents per gallon for the first time since the early 2000’s. Gasoline prices have continuously dropped nationwide since February 20, 2020 as the coronavirus crushes the demand for oil and lockdowns reduce driving and keep Americans home. More than half of U.S. states are currently seeing average prices less than $2 per gallon. In the last week, 99 cent prices have shown up at various times in Kentucky, Tennessee, Oklahoma, Wisconsin and Missouri and more could join in the days and weeks ahead. An additional drop of 25-65 cents is possible in most states, while West Coast states, including California, could see prices drop 50 cents to a dollar per gallon over the next few weeks.
| Rural Advocate News | Tuesday March 31, 2020 |
Washington Insider: Next Phase in Virus Relief The shock from the COVID-19 attack on the U.S. population and economy has been so large and threatening that politicians are actively searching for more relief beyond the current measures. The Hill is reporting this week that “Democrats are keen on including additional direct payments to Americans in the next coronavirus response bill to provide financial stability as the pandemic ravages the economy.” The report says that numerous Democratic lawmakers have offered proposals for more generous payments than those included in the $2 trillion measure signed into law Friday. That was the third coronavirus bill the President signed recently and lawmakers are already starting to discuss their priorities for a “phase four” measure. “Still, much of the discussion is uncertain because it’s driven by the trajectory of the disease,” said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center. The newest bipartisan measure signed into law contained several provisions aimed at helping individuals and businesses cover their expenses during the pandemic. In addition to the one-time checks, unemployment insurance received a boost and small businesses can now access forgivable loans if they retain their workers. Treasury Secretary Steven Mnuchin said he expects the relief will arrive within three weeks. By then, Democrats might already be giving shape to a fourth coronavirus relief bill, The Hill said. Speaker Nancy Pelosi, D-Calif., has made several comments backing enhanced direct payments. For example, a proposal released by House Democrats on Monday called for one-time cash payments of $1,500 for both adults and children, which is more generous than the payments in the current law. “We had bigger direct payments in our bill,” Pelosi said during a press conference Thursday. “I don't think we’ve seen the end of direct payments.” Numerous other Democratic lawmakers are proposing multiple rounds of payments to help Americans weather the pandemic. Reps. Ro Khanna, D-Calif., and Tim Ryan, D-Ohio, offered a plan that would provide most Americans with monthly checks for six months which Congress could renew for an additional six months if the outbreak continues to weigh on the economy. “I think it’s important for mental health and economic health for people to know they have something to lean on,” Ryan said last week. Sens. Cory Booker, D-N.J., Michael Bennet, D-Colo., and Sherrod Brown, D-Ohio, earlier this month proposed immediate payments of $2,000 per person with additional payments of smaller amounts if the economic turmoil persists. Other Democrats who have floated multiple direct payments include House Financial Services Committee Chairwoman Maxine Waters of California and prominent freshman progressive Rep. Rashida Tlaib, D-Mich. In addition to additional relief checks, Democrats have expressed an interest in expanding the earned income tax credit and the child tax credit — two refundable credits benefiting low- and middle-income families — as part of future coronavirus legislation. Many Democrats, including Brown and House Ways and Means Committee Chairman Richard Neal, D-Mass., have long had an interest in expanding the credits and argue that doing so now would give families additional assistance. Democrats aren’t the only ones who have suggested there should be more than one round of cash assistance. Sen. Josh Hawley, R-Mo., has introduced a bill that would provide monthly payments to families during times of economic distress or school closures as a result of the coronavirus. A spokesman for Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said that it’s too soon to know what will be included in the next relief package. Grassley played a key role in the checks that were included in phase three. Economic policy experts are cautioning that several factors will play into whether Congress creates additional direct payments, such as how long the outbreak persists and how effective and popular the checks and loans in the phase current package turn out to be. Doug Holtz-Eakin, a former Congressional Budget Office director and now president of the right-leaning American Action Forum, said that if the business loans are effective in keeping workers on payrolls, there won’t be a need for more checks — but that the odds of Congress passing additional checks go up if the current supports don’t succeed in preventing further layoffs and business closures. But Adam Ruben — director of Economic Security Project Action, which advocates for a “cost-of-living refund” — said he doesn’t think additional cash payments would be a tough sell if some parts of the country recover faster than others. He said many people were struggling financially even before the coronavirus outbreak. “A single check is a fundamental misunderstanding of this health crisis,” Ruben said. “Public health experts are predicting that this will be a marathon, and Americans need money in their wallets to sustain them.” So, we will see. The massive response by the government appears to be popular now, but may well be less than totally effective — especially if the virus’ impacts turn out to be even worse than expected. These are trends producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday March 31, 2020 |
FSA Extending Loan Deadlines USDA's Farm Service Agency (FSA) announced it is relaxing its loan-making process and adding flexibilities for servicing direct and guaranteed loans to provide credit to producers in need. “We recognize that farm loans are critical for annual operating and family living expenses, emergency needs and cash flow through times like this," FSA Administrator Richard Fordyce said in a statement. "FSA is working to find and use every option and flexibility to provide producers with credit options and other program benefits.” The difficulties linked to the coronavirus situation a prompting a host of actions across government that are aimed at streamlining activities for businesses and giving some leeway as they grapple with the virus’ impacts.
| Rural Advocate News | Tuesday March 31, 2020 |
RFA Hits EPA for Delaying Action on 10th Circuit Court Ruling. The EPA announcement March 27 that it would “develop an appropriate implementation and enforcement response to the 10th Circuit’s decision in RFA [Renewable Fuels Association] v. EPA once appeals have been resolved and the court’s mandate has been issued,” has been greeted with criticism by RFA. The EPA statement is an “attempt to kick the can on nationwide application of the 10th Circuit Court decision has nothing to do with COVID-19 and everything to do with politics,” RFA President and CEO Geoff Cooper said in a statement. “There is absolutely no reasonable justification for delaying implementation of the court’s decision. The court has already ‘issued a mandate’ and remanded three improperly granted exemptions back to the agency to resolve.” While labeling EPA’s decision to not appeal the court decision a correct one, Cooper said that equated to a decision that they will abide by the ruling. “What are they waiting for,” he asked. Rehearing of the case at the behest of the refiners affected by the ruling is unlikely to see the matter overturned, Cooper stressed. “There is no rationale for EPA to wait for the courts to respond to the refiners’ hollow request for a rehearing before moving forward with adoption of the decision. In any event, given the unanimous and thoughtful decision by the 10th Circuit panel that heard the case, we are confident that the ruling is going to be upheld,” he said.
| Rural Advocate News | Tuesday March 31, 2020 |
Tuesday Watch List Markets Tuesday has a report on U.S. consumer confidence at 9 a.m. CDT. For grain markets, the main attention will be on USDA's survey of planting intentions and report of March 1 grain stocks, set for 11 a.m. CDT. Traders continue to be attentive to coronavirus statistics, weather and any trade news. Weather Rain and snow are in store for the interior Northwest Tuesday, while the Delta and Mid-South will see light to moderate rain. Other primary crop areas will be mainly dry. The Delta and Mid-South continue to have saturated soils and flood potential with repeated rain. The northwestern snow system crosses into the Northern Plains during the next couple days, bringing stress to livestock and hindering delayed corn harvest. Some field work is possible elsewhere, notably in the central and Southern Plains.
| Rural Advocate News | Monday March 30, 2020 |
House Approves Coronavirus Relief Bill The House of Representatives approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act on Friday. The bill, which the Senate had already approved 96-0, now goes to President Donald Trump, who’s already promised to sign it. The Hagstrom Report says the measure passed the House by voice vote, with just a few voices in opposition. Democrats in the House praised Senate Democrats and House leadership for making changes in the bill, while House Ways and Means Ranking Member Kevin Brady says, “Senate Democrats, aided by (House) Speaker Nancy Pelosi, recklessly delayed this bill for days and used this crisis to try and advance a frivolous political agenda. That failed, while the Senate found unanimous, if not perfect, ground.” Mike Rogers of Alabama told the House that the bill was particularly important to rural hospitals that need to buy supplies and build infrastructure to provide medical information and advice online. Washington state Republican Dan Newhouse told his colleagues before the vote that the bill would “support hardworking farmers and ranchers who provide food for the nation.” Pelosi herself called for a large vote so that Americans would realize the government is there to help. ********************************************************************************************** USDA Accepts Over 3.4 Million Acres in General CRP Signup USDA Secretary Sonny Perdue says his agency accepted over 3.4 million acres into the general Conservation Reserve Program signup that recently wrapped up. It’s the first general signup for enrollments since 2016. County offices will begin to notify producers with accepted acres no later than April 3. “The Conservation Reserve Program is one of our nation’s largest conservation endeavors and is critical in helping producers better manage their operations while conserving valuable natural resources,” Perdue says. “The program celebrates its 35th anniversary this year and we’re quite pleased to see one of our largest signups in many years.” For the past 3.5 decades, the CRP has addressed multiple concerns while ensuring the most competitive offers are selected by protecting fragile and environmentally-sensitive lands, improving water quality, enhancing wildlife populations, providing pollinator forage habitat, sequestering carbon in soil and enhancing soil productivity. Seventy percent of the nation’s land is privately owned, and America’s farmers and ranchers have stepped up to protect the environment and natural resources through this program. Farmers and ranchers get an annual rental payment for establishing long-term, resource-conserving plant species, such as approved grasses or trees, to help control soil erosion, improve water quality, and enhance wildlife habitat on cropland. ********************************************************************************************** State Department to Accelerate H-2A Approvals The U.S. State Department will speed up approvals of H-2A farmworkers by waiving interviews for many applicants. An Agri-Pulse report says the move is applauded by many of the country’s major ag groups, who were worried that embassy cutbacks due to the coronavirus outbreak would leave farmers without the labor they need to run their operations. Late last week, the State Department said consular officers have the option to go ahead and “waive the visa interview for first-time and returning H-2A applicants who have no potential ineligibility.” The State Department’s expansion of the waiver process also quadruples the period in which returning workers may qualify to have their interview waived. That timeframe used to be a year, but applicants who’ve had visas expire anytime during the last four years now won’t need to be interviewed if they are applying for the same visa classification and didn’t need an interview the last time they applied. A State Department document says the new approval process will only be valid during the current calendar year. The Western Growers’ Association issued a statement saying that the move will ease the flow of guest workers into the country during a time when our farmers are doubling their effort to provide the country with safe, healthy, affordable, and abundant food. ********************************************************************************************** Valero Closing Down Two Ethanol Plants U.S. fuel ethanol producer and refiner Valero is shutting down two of its ethanol plants, one in Nebraska and the other in Iowa. They’re also declaring “force majeure” (mah-ZHURE) on shipments for dried distillers’ grains or corn purchases, which means they won’t be able to meet contracted demands because of unforeseeable conditions. The force majeure is because of a lack of storage availability for corn or ethanol as demand for fuel drops and storage remains limited due to the excess supply. The coronavirus outbreak is causing Americans to drive considerably less than usual, so the low demand and excess supply are forcing Valero to close plants in Albion, Nebraska, and Albert City, Iowa. An Independent Commodity Intelligence Services website article says the supply of fuel ethanol remains ample while some producers are switching to industrial ethanol production as demand from that sector continues to climb. The state of the summer driving season is also uncertain, which is limiting fuel demand. The peak demand for fuel ethanol is during the summer. Fuel ethanol demand is almost cut in half as the people who account for 45 percent of the overall demand are currently on stay-at-home-orders in the U.S., with those order numbers continuing to climb. ********************************************************************************************** Less than Half of U.S. Dairy Farms Signed up for DMC Fewer dairy farmers chose to opt into the Dairy Margin Coverage Program that was authorized in the 2018 Farm Bill. At the beginning of this year, the forecast was for an improving dairy economy and the USDA prediction tool that showed either low or no DMC payments this year. However, the rapidly-evolving situation brought on by the COVID-19 outbreak is a reminder about how important safety net programs can be in agriculture. DMC is a voluntary, insurance-style program that makes payments when the national average income-over-feed-cost margin falls below a coverage level selected by each farmer. Coverage is available from $4 a hundredweight to as much as $9.50 per hundredweight. At the time of the 2020 program year signup, the all-milk price was expected to remain well above the levels of the previous four years. Projections had the price as high as $19 a hundredweight during 2020. Like other industries, dairy has been hit by the pandemic. Class 3 and Class 4 milk futures have sharply declined. One bright spot is fluid milk sales. Those numbers have jumped higher as Americans shift food dollars away from restaurants and more into at-home spending on food. ********************************************************************************************** Farm Machinery Giants Feeling the Pinch of Coronavirus Fallout Tractors would likely be moving at a quicker rate this year as farmers across rural America need to replace some aging machines. However, Bloomberg says there is very little movement of farm machinery in the U.S., plus European production is being hampered by shortages across the industry supply chain. Trade war uncertainties and low crop prices kept farmers from shelling out cash to replace their implements. Now the uncertainty brought on by the COVID-19 pandemic is only making matters worse as no one can say for certain how long it will last or how much it will damage the economy. Both Deere & Co and AGCO Corporation say they’ll be cutting back their operations. The move by Deere comes just a month after it announced an unexpected boost in earnings and maintained its early-year positive outlook for stabilization in the ag economy. Now that they can’t forecast the future with as much confidence, the company has changed direction. Large-tractor sales are already down 50 percent below their peak level, which Bloomberg says is normally a sign that farmers have a significant need to replace their equipment. As the U.S. shuts down to stem the spread of the coronavirus, Deere will be reducing some operations and closing others. In Europe, production has already been significantly reduced or suspended in several AGCO facilities as the virus spreads across the continent.
| Rural Advocate News | Monday March 30, 2020 |
Washington Insider: What’s Ahead for the Economy The national media certainly is uncertain about the economic future these days. For example, the New York Times emphasized the “might of the Federal Reserve” is on display, but noted that it is now dealing with a virus, which seems almost impossible to understand. The report began with a look at recent trends in the equities markets and said, “After weeks of dropping like a stone, the stock market began to catapult upward” last week. By the market close on Thursday, the Dow had risen more than 20% from its nadir on Monday — enough, in technical terms, to qualify as a bull market, NYT said. The article allows that it is largely “pointless” to try to explain moment-to-moment financial market moves since they “usually amount to little more than random noise.” Still, it thinks there are exceptions and “this may be one of those times.” Among the myriad, and often spurious, explanations for the market’s abrupt change of mood, the NYT found an explanation: the Fed. And it found a financial expert who agreed. He is Edward Yardeni, an independent Wall Street economist who has published a new and exquisitely timed book. Yardeni says that “The Fed decided it had to really shock and awe the markets and it did the job. You can see the results yourself. He notes that the Fed announced that it would, essentially, take whatever actions were needed to restore stability in the markets, as well as the economy. Referring to the unorthodox monetary policies that the Fed put into effect to combat the global financial crisis of 2007-08, he said the new policy amounted to “quantitative easing to infinity and beyond.” He said that the Fed’s new policies are so large, and operate on so many fronts, that they are difficult even to catalog. In addition to lowering short-term interest rates to nearly zero, it will buy Treasury securities, government agency securities and corporate bonds. Beyond that, the newly enacted fiscal stimulus package will enable it to increase its already immense firepower by as much as $4 trillion. An extremely confident Jerome Powell, the Fed chair, sent out a clear message on the “Today” show on Thursday, saying: “When it comes to this lending, we’re not going to run out of ammunition.” The Times interpreted that statement as a challenge—"fight the Fed and you will face a virtually limitless financial arsenal.” No wonder traders were stunned into submission, it said. In the face of the Fed’s intention to bolster the markets, they stopped dumping stocks and began to gobble them up. Yet any central bank’s ability to turn an entire economy around is severely limited under any circumstances, the Times cautioned. In the face of a pandemic and what increasingly looks like a severe global recession, even the Fed can provide only partial remedies. Still, money is flowing into credit markets, which had threatened to seize up as they did in the last financial crisis. The pricing of exchange-traded bond funds—mutual funds that trade all day like stocks—has returned to a semblance of normality, thanks to the Fed’s intervention in the bond market. And riskier assets like stocks have received a therapeutic jolt, now that the Fed has made it absolutely clear that it will do whatever it takes. In addition, Yardeni pointed out that double-digit gains in stock prices over just a few days may already be enough to have fundamentally shifted traders’ approach to stocks. The Fed acted, and the stock market “just took off,” he said. He added that it was quite possible that the “market has already reached a bottom.” However, that is a fundamental question for investors, the Times cautions, and says it finds that likelihood doubtful and that it is unwilling to assume that the worst is over in the markets, because there may well be “terrible events” just ahead.” On Thursday morning, for example, the Labor Department announced that 3.28 million Americans had filed for unemployment benefits in a single week — up from the previous record by a factor of nearly five. And next week’s number could be worse. Also last week’s reports indicate that the pandemic is still in its early stages and its severity is only beginning to be measured. Economists at JPMorgan Chase now predict that the decline in gross domestic product in the United States will be more than 10% in the current quarter and more than 25% from April through June. How steep the drop in GDP will actually be is anybody’s guess, but it will be certainly be bad. Whether the stock market, which gave up ground on Friday, can rise in the face of such calamities seems highly questionable, while the performance of the federal government has so far been less than inspiring. “If we don’t get the pandemic under control,” Yardeni said, “I don’t know what the Fed is going to do about it.” I hope we don’t have to find out. The Fed’s intervention has been comforting, but awesome as it may be, the Fed can’t beat the coronavirus. So, we will see. The effectiveness of the new efforts to “level” the impacts of the pandemic are extremely important and the combined health and economic policies should be watched very closely by producers as their impacts emerge Washington Insider believes.
| Rural Advocate News | Monday March 30, 2020 |
State Department Shifts H-2 Visa Process After having suspended visa processing at embassies March 20, the State Department announced it is still continuing to process returning H-2 visas and will now allow consulates to waive in-person H-2 interviews on first-time and returning H-2 applicants “that have not apparent ineligibility or potential eligibility.” The interview waiver can also apply to those whose previous visas expired within the last 48 hours and did not require a waiver of ineligibility to the last time they applied if they are applying for the same classification as their prior visa. “We anticipate the vast majority of otherwise-qualified H-2 applicants will now be adjudicated without an interview,” the State Department said. USDA Secretary Sonny Perdue welcomed the move relative to H-2A visa applicants that work in throughout the ag sector.
| Rural Advocate News | Monday March 30, 2020 |
EPA Addresses Court Ruling On RFS Exemptions EPA has finally issued comments relative to the situation with small refinery exemptions (SREs) in the wake of the 10th Circuit Court ruling, which invalidated three SREs issued for the 2016 compliance year. “EPA does not intend to unilaterally revisit or rescind any previously granted small refinery exemptions issued for prior compliance years,” the agency said as it announced other fuel-related actions. “As noted in the temporary policy on COVID-19 Implications for EPA's Enforcement and Assurance Program, issued yesterday (March 26), EPA is focused on protecting our employees and ensuring continued protection of public health and the environment from acute or imminent threats during the COVID-19 pandemic.” Given that stance, EPA said that investigating and initiating enforcement actions against prior SRE recipients “is a low priority for the agency.” EPA further said it “intends to develop an appropriate implementation and enforcement response to the 10th Circuit’s decision in RFA v. EPA once appeals have been resolved and the court’s mandate has been issued.” On the 2019 compliance deadline of March 31 for obligated parties to demonstrate compliance with the Renewable Fuel Standard (RFS), EPA said, “In a forthcoming action, EPA intends to extend the RFS compliance date for small refineries to provide them with additional flexibility.”
| Rural Advocate News | Monday March 30, 2020 |
Monday Watch List Markets Fresh back from the weekend, traders will check the latest coronavirus statistics and the trends of late, have been discouraging. Weather, trade news and any new comments from Saudi Arabia on oil production will get attention. A report on pending home sales will be released at 9 a.m. CDT, followed by USDA's report of weekly export inspections at 10 a.m. CDT. Weather Most primary crop areas will be dry Monday, allowing for soil drying and continued draining of excessive moisture. Some light rain will form in the Southern Plains and in the Northwest. A more active pattern is in store for Tuesday and Wednesday with rain in the Delta and a rain-snow combination in the Northern Plains. There is no new major flood threat at this time.
| Rural Advocate News | Friday March 27, 2020 |
Administration Won’t Drop Tariffs to Boost Economy Previous reports have suggested administration officials were considering suspending tariffs to stimulate the U.S. economy. However, the top trade adviser for the White House, Peter Navarro, says the Trump administration isn’t considering that right now. A Marketplace Dot Org report says tariffs are taxes on imported goods that American companies and consumers always wind up paying. The head of the Coalition for a Prosperous America says a lot of the duties were first implemented because many imports were being subsidized or otherwise traded unfairly, injuring American companies and their ability to do business. Economists ranging from the Federal Reserve through the private sector have compared how much the tariffs have benefited the economy against how much difficulty they bring as well. “Tariffs cause more losers than winners,” says Dan North, senior economist for a group that provides trade credit insurance. “it’s a significant drag on the economy, especially in the current environment.” Mary Lovely, a professor of economics at Syracuse University, says a suspension would be aimed at U.S. manufacturers that import the items needed to assemble new goods. ********************************************************************************************** Farm Futures Survey says Farmers Planting More Corn in 2020 It looks like U.S. farmers are upping the number of corn acres going into the ground during spring planting. The newest Farm Futures survey shows farmers will plant 96.4 million acres of corn during the 2020 planting season. That’s the second-highest number of intended acres after farmers put a record 97.3 million acres of corn in the ground during 2012. The Farm Futures number is more than two million acres higher than the most recent USDA projection in February of 94 million acres. Farm Futures points out that a lot of things have changed between the two forecasts. The coronavirus pandemic hit, upending the global economy. The increased economic uncertainty, historically cheap input costs, as well as weaker soybean demand from China all appear to have made corn the optimal choice among somewhat limited options for Midwest farmers. Farm Futures estimates that soybean plantings will total 82.7 million acres, almost three million less than the USDA estimate of 85 million, which also came out in February. The survey estimates that farmers will plant 45.8 million acres of wheat, higher than USDA’s estimate of 45.0. Farm Futures also estimates that farmers will plant 11.7 million acres of cotton, less than the USDA estimate of 12.5 million. ********************************************************************************************** FSA Services Available by Phone Appointment Only USDA’s Farm Service Agency county offices are open only by a phone appointment until further notice because of the COVID-19 outbreak. FSA staff are available to continue helping agricultural producers with program signups, loan servicing, and other important actions. Also, the FSA is relaxing the loan-making process and adding flexibilities for servicing direct and guaranteed loans to provide credit to producers in need. Program delivery staff will continue to come to the FSA office, but they’ll work with producers by phone and other online tools whenever possible. “FSA programs and loans are critical to America’s farmers and ranchers, and we want to continue our work with customers while taking precautionary measures to help prevent the spread of coronavirus,” says FSA Administrator Richard Fordyce. “We recognize that farm loans are critical for annual operating and family living expenses, as well as emergency needs and cash flow through times like this. FSA is working to find and use every option and flexibility to provide producers with credit options and other program benefits.” ********************************************************************************************** Farmers, Rural Businesses, Brace for a Possible Recession Rural counties are in a fragile spot economically after years of weakness in farming and manufacturing, as well as a weaker recovery since the Great Recession. The COVID-19 pandemic has pressured the U.S. economy to the point that it’s facing another downturn. Politico says the pandemic has put a dent in global trade and U.S. commodity prices. It’s the latest economic challenge for farmers and ranchers after being hit by years of tariffs and weather challenges. “These are ‘black swan’ events, the kinds of things that you can’t plan for,” says John Newton, chief economist for the American Farm Bureau. “It’s a shock to the economy that we will recover from, it’s just a matter how long the drag will be on this.” Mark Scanlan is senior vice president of agriculture and rural policy with the Independent Community Bankers of America. Scanlan says, “It’s not just the farmers, it’s the Main Street businesses that they’re doing business with, the people that are employed by the processing and distribution chain.” Rural demographics could make it even more of a challenge to eventually bounce back, because the most isolated rural counties saw the biggest population loss and have the highest poverty rates. ********************************************************************************************** Hoarding is Pushing the Price of Eggs and Milk Higher Panic buying and hoarding supplies is pushing wholesale egg prices in the Midwest to their all-time high. The Des Moines Register says prices for other staples like milk, beef, and even ice cream have gone higher as well. Joe Kerns is president of an agricultural consulting company in Ames, Iowa, who says the Midwest isn’t short on supplies, it’s abnormally-high demand that’s causing the price jump. Because of the uncertainty surrounding the coronavirus outbreak, consumers in Iowa and across the U.S. are piling way more than the usual amount of groceries in their shopping carts. That unusually-high demand level is driving prices higher. Kerns says it’s not a surprise because as restaurant dining rooms are closed, more people are cooking in their homes. Some grocers are seeing as much as six times the normal demand for eggs, which is temporarily clearing out shelves. Processor are struggling to fill orders that are coming in at a rapid pace. Stores in Iowa and across the country say they’re seeing increased prices from their suppliers as they keep working to make sure their shelves stay filled with staple products. ********************************************************************************************** U.S. Seed Companies Taking Steps to Meet Farmer Needs American Seed Trade Association President Andy LaVigne (Luh-VEEN) says the U.S. seed industry is committed to meeting farmer and consumer demand for food. The association says its top commitment is ultimately ensuring that America’s families have ongoing access to a healthy, safe, and affordable food supply as America continues to deal with the impacts of COVID-19. “The seed industry plays a foundational role in the production of the food, feed, forage, clothing, fuel, and other agricultural products to help sustain a sound and balanced economy,” LaVigne says. “As we head into spring planting season right in the middle of the global pandemic, America’s seed companies are working hard to make sure farmers, ranchers, and homeowners, will have access to the quality seed they need to ensure a successful year.” He also says U.S. seed companies have put into place the necessary practices to comply with COVID-19 recommendations from the U.S. Centers for Disease Control and Prevention as they continue to deliver seed during this challenging time. “We appreciate the tireless efforts of American producers who are on the frontlines every day,” LaVigne adds. “We’re also grateful for the strong support and communication from Secretary Perdue and his team to ensure America’s families have ready access to nutritious food, both now and into the future.”
| Rural Advocate News | Friday March 27, 2020 |
Washington Insider: Virus Relief Bill The Senate unanimously (96-0) passed the coronavirus relief bill this week and it was sent to the House where it is expected to pass today, the Washington Post says. At least some of its many details are emerging, Bloomberg reports. As almost everyone knows the plan would include about $2 trillion in aid, including $500 billion in loans and cash assistance for individuals, companies, states and cities. Also emerging are some of the strings that were attached to avoid problems with earlier bailout packages. For example, companies receiving government loans would be subject to a ban on stock buybacks “through the term of the loan plus one additional year.” They also would be required to limit executive bonuses and take steps to protect workers – and Treasury would be required to disclose the terms of loans or other aid. A new Treasury inspector general would oversee the program. The bill is largely a win for the retail, hotel and restaurant industries that had initially viewed lawmakers as favoring the airline industry, Bloomberg said. “We see it as an important win,” said Austen Jensen of the Retail Industry Leaders Association said. “Yes, airlines are in a tough spot, but the retail industry is equally in a difficult position.” Struggling U.S. airlines would be eligible to receive federal loans and direct cash assistance amounting to about $25 billion of each. The cash assistance for payrolls is expected to eliminate the risk of near-term bankruptcies, JPMorgan analyst Jamie Baker said in a report Wednesday. Other transportation winners include rail and transit operators. Amtrak would get $1.02 billion to cover virus-related revenue losses and support state-funded routes. State and local transit agencies would get $25 billion for operating and capital expenses. The bill also carves out more than $350 billion in aid for small businesses, mainly guaranteed loans through the Small Business Administration and banks. The loans could be forgiven provided the businesses meet certain requirements including limiting reductions in pay and layoffs, though with more flexibility for employers than the original Senate bill. The package also would provide direct payments to lower- and middle-income Americans of $1,200 for each adult, as well as $500 for each child. Democrats were able to insert a change from a previous version to allow low-income taxpayers the full $1,200 payment. The initial plan would have given smaller checks, or in some cases, no money at all, to very-low income people, Bloomberg said. Unemployment insurance payments are to be bolstered and recipients would be eligible to receive those funds for an average of four months, up from three in the prior GOP plan. It also would extend eligibility to the self-employed and workers in the gig economy such as drivers for Uber Technologies Inc. The legislation calls for $117 billion for hospitals and veterans’ health care, as well as $16 billion for personal protective equipment, ventilators and other medical supplies for federal and state response efforts. It also includes $11 billion for vaccines, therapeutics, diagnostics and other medical needs, and at least $250 million to improve the capacity of health-care facilities to respond to medical events, according to a summary by the Senate Appropriations Committee. The bill also would require insurers to cover tests for Covid-19 and require labs to post cash prices on public websites. Vaccines or other preventive services would be covered without cost-sharing. Also, many U.S. homeowners and businesses hit hard by coronavirus could get relief from making their monthly mortgage payments. Borrowers with loans insured by government agencies such as the Federal Housing Administration and the Department of Veterans Affairs would be eligible for “forbearance.” Consumers whose mortgages are backed by Fannie Mae and Freddie Mac would also be eligible to skip payments. U.S. regulators have already mandated relief for borrowers facing financial hardships due to coronavirus, in addition to suspending foreclosures and evictions through the end of April and in some cases longer. Under the Senate bill, borrowers would be eligible for 60 days of forbearance if they can demonstrate virus-related financial stress. The relief can be extended for 30 days up to four times. Commercial borrowers with federally backed loans could potentially skip payments for at least 30 days with a possible extension of up to 60 additional days. The stimulus package includes up to $23.5 billion in farm aid and would provide $9.5 billion in emergency funds for agriculture, including livestock producers and growers of specialty crops such as fruits and vegetables. And it would authorize $14 billion in new borrowing authority for the USDA’s Commodity Credit Corp. Agriculture groups including the American Farm Bureau Federation, the United Fresh Produce Association and livestock groups had sought aid in the stimulus package. A coronavirus relief fund with $150 billion would be created for states, cities and other local governments. Additional funds will be set aside for territories, tribal governments and other entities. Democrats sought to add funding for clean energy but in the end funds for both clean and conventional energy were scuttled. However, the issue could arise later as Congress takes up additional coronavirus-related legislation in coming weeks. So, we will see. The legislation being considered is criticized by many for being too large and by others for being too small—even as the need for assistance was dramatized by the increase in unemployment from 3.5% to 5.5% this week and numbers of virus cases continued to grow. Clearly, this is a crisis that producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Friday March 27, 2020 |
More Actions Urged on Dairy USDA should use its Section 32 authority to purchase additional dairy products in a bid to support the struggling dairy industry and meet rising food assistance needs as the nation grapples with the COVID-19 pandemic, Vermont’s congressional delegation urged in a March 24 letter to USDA Secretary Sonny Perdue. The coronavirus crisis is hitting the U.S. dairy industry hard and the National Milk Producers Federation (NMPF) is looking to USDA to help stabilize prices and provide aid to struggling farmers along with Vermont’s congressional delegation. USDA should “immediately exercise its Section 32 authority to purchase additional dairy products for distribution through The Emergency Food Assistance Program (TEFAP),” the lawmakers urged. The economic effects of the COVID-19 pandemic are expected to increase strain on the charitable food system, and the purchases will “will help ensure those in need receive critical nutrition during this challenging period,” they said. A key issue the dairy industry is concerned about relates the level of school closures that have taken place, reducing milk demand and that may well be demand that will be lost for the sector.
| Rural Advocate News | Friday March 27, 2020 |
State Department Taking Action to Speed H2 Visa Situation The U.S. Department of State and the Department of Homeland Security have decided to authorize temporary waivers for in-person interviews for eligible H-2 visa applicants. This applies to both H-2A and H-2B visas. “Temporarily waiving in-person interviews for H-2 visa applicants streamlines the application process and helps provide steady labor for the agriculture sector during this time of uncertainty,” USDA Secretary Sonny Perdue said in a statement. “H-2 labor is vital to the economy and food security of America – our farmers and producers depend on these workers to continue to feed and clothe the world.” It is not clear if the State Department action applies to only returning visa holders or if the process will help seed the new visa applicants.
| Rural Advocate News | Friday March 27, 2020 |
Friday Watch List Markets Increasing coronavirus statistics remain a top concern for markets with everything else a distant second on Friday. Reports on U.S. personal incomes and consumer spending are due out at 7:30 a.m. CDT, followed by an index of consumer sentiment at 9 a.m. Other market interests include weather, trade news and any new comments from Saudi Arabia about oil production. Weather Showers and thunderstorms will extend from the central Plains to the eastern Midwest Friday. Rain will be locally heavy in the eastern Midwest with a threat of flash flooding. Other crop areas will be dry. The rain area expands through the remainder of the Midwest and into the Northern Plains Friday night and Saturday, with moderate to locally heavy totals. Flood threat will be high due to rain falling on saturated soils, notably in northern and eastern crop areas.
| Rural Advocate News | Thursday March 26, 2020 |
Stimulus Package Includes Ag Provisions The $2 trillion stimulus package includes billions of dollars for U.S. agriculture. A quick analysis by the American Farm Bureau Federation shows agriculture is set to receive $49 billion. Of that, $14 billion is provided to the Department of Agriculture’s Commodity Credit Corporation, and $15.8 billion is provided to the Supplemental Nutrition Assistance program. Meanwhile, $9.5 billion is provided to the office of the Secretary for livestock and specialty crops, and $8.5 billion is provided for Child Nutrition Programs. Additionally, the funding includes $450 million for commodity assistance, $100 million for broadband grants, and $25 million for distance learning and telemedicine efforts. The agreement opens the door for a potential third round of Market Facilitation Payments through the Commodity Credit Corporation, originally created to help farmers as the Trump administration carries out its trade agenda. Funding an additional round of payments through the program is a request from many groups in agriculture. ************************************************************************************ NCGA Issues Steps to Manage COVID-19 on the Farm A guide by the National Corn Growers Association offers tips to manage COVID-19 on the farm. Farmers are preparing for spring planting, which means activity levels are increasing on the farm for things like field preparation and on-farm deliveries. NCGA says limiting interactions and exposure is a good idea to limit exposure and risk related to COVID-19, as it is critical to practice biosecurity for your family, your employees, the public, and animals. NCGA recommends farmers identify and coordinate a drop-off location for supplier deliveries to the farm. If possible, set this up away from high traffic areas and housing. Further instruction includes practicing distancing with delivery drivers, log all deliveries and utilize a visitor's log for everyone entering the farm. NCGA recommends farmers prepare on-farm workers and family members, and to sanitize contact surfaces around the farm, including door handles and knobs, floor mats, steering wheels and other commonly contacted surfaces. Additionally, it is recommended that all farms have Continuity of Business plans, to keep operations running smoothly in case of any disruption. ************************************************************************************ Coalition Welcomes Decision Not to Seek Re-Hearing of SRE Ruling Ethanol and farm groups welcomed the Trump administration’s decision not to seek a re-hearing of a recent ruling that struck down certain small refinery exemptions. The exemptions under the Renewable Fuel Standard “vastly exceeded” Environmental Protection Authority in granting exemptions from 2016 and 2017 RFS requirements for three refineries, according to the court. The challenge was brought against EPA in May 2018 by the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol and National Farmers Union in response to the massive demand destruction caused by the Agency’s use of SREs. In the wake of the decision not to seek a re-hearing, the four groups called upon the EPA to immediately apply the court decision nationwide. The group states, “With this key milestone now behind us, we look forward to EPA applying the Tenth Circuit decision nationwide to all SRE petitions, beginning with the 25 pending petitions for 2019 exemptions.” ************************************************************************************ Kind Asks Trump to Expedite Tariff Exclusion Process A letter to the Trump Administration from three lawmakers asks the President to temporarily suspend tariffs or at least greatly expedite the tariff exclusion process. Representative Ron, a Democrat from Wisconsin, and others, signed the letter, which states, “Immediate tariff relief will have numerous positive effects, including reducing disruptions to existing supply chains and easing the economic burden on our companies and their workers.” The letter says tariff duties continue to threaten the economic well-being of families across the country and the viability of the health care, manufacturing, retail, and food sectors. The lawmakers are seeking a temporary reprieve from President Donald Trump, not permanent action. The letter says, “it is important to note that we are not asking for permanent rollbacks at this time. Instead, we are asking for you to provide temporary relief for our constituents during this public health crisis.” Joining Kind in the letter was Democratic Representatives Suzan DelBene of Washington and Terri Sewell of Alabama. ************************************************************************************ Canada Announces Support Programs for Agriculture Canadian Prime Minister Justin Trudeau this week announced new measures to support farmers and agri-food businesses in Canada facing financial hardship due to the impacts of the COVID-19 pandemic. Farm Credit Canada will receive support from the Government that will allow for an additional $5 billion in lending capacity to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially strong. In addition, all eligible farmers who have an outstanding Advance Payments Program loan due on or before April 30 will receive a Stay of Default, allowing them an additional six months to repay the loan. This measure, which represents $173 million in deferred loans, will help keep more money in farmers' pockets during these critical months. The Advance Payments Program is a financial loan guarantee program that provides producers easy access to credit through cash advances. ************************************************************************************ Ethanol Industry Employs Significant Amount of Veterans A new study shows America's ethanol industry employs a significantly larger share of military veterans than any other segment of the energy industry. Nearly one in five ethanol industry employees is a veteran at 19 percent, compared to a national average of six percent across all sectors of the workforce, according to the 2020 U.S. Energy and Employment Report published by the National Association of State Energy Offices and Energy Futures Initiative. Per 100 workers, the ethanol industry employs more than twice as many veterans as the petroleum, natural gas, nuclear, coal, and wind energy sectors. Across all energy segments, veterans comprise nine percent of the U.S. energy sector's workforce, slightly above the national average. RFA President and CEO Geoff Cooper, an Army veteran who attained the rank of Captain, says, “The ethanol industry is a perfect fit for thousands of veterans across the country.” With ethanol jobs currently at risk due to the COVID-19 pandemic, and other factors, Cooper said the report serves as a timely reminder that the ethanol industry is a crucial employer of veterans.
| Rural Advocate News | Thursday March 26, 2020 |
Washington Insider: The Food Supply is Safe Amid widespread concerns about threats from the coronavirus, Food Safety News (FSN) is carrying a report by Frank Yiannas, deputy FDA commissioner for food policy and responses. Yiannas notes that a critical and specific part of FDA’s mission is safeguarding the human and animal food supply including “helping to ensure that our food is not contaminated at any point during its journey along the supply chain.” He notes that the COVID-19 threat is a “new frontier” but wants to assure consumers that it does not threaten the U.S. food supply. Unlike foodborne gastrointestinal viruses like norovirus and hepatitis A that make people ill through contaminated food, COVID-19 is spread mainly from person to person and causes respiratory, not gastrointestinal illnesses, he says. He emphasizes that “foodborne exposure to this virus is not known to be a route of transmission.” As a result, he says, the agency does not anticipate that food products would need to be recalled or withdrawn from the market “for reasons related to the outbreak.” This is true, he says, even if a person who works in a human or animal food facility is confirmed to be positive for the COVID-19 virus. Food production and manufacturing are dispersed throughout the U.S., Yiannas says and notes that he is not aware of any widespread disruptions of the supply chains which “remain strong.” The FDA is working closely with food manufacturers and grocery stores to insure that they continue to insure normal flows of products, he says. He also says that the shortages that have been reported are “localized” and tend to reflect sharp increases in demand rather than a lack of production capacity — and that they have been “generally overcome quickly.” Yiannas notes that FDA Commissioner Dr. Stephen Hahn announced last week that the agency has postponed most foreign inspections through April — mainly because of restrictions on travel and concerns about the safety of FDA’s investigators. In the meantime, FDA is using its other tools and authorities to help ensure the safety of imported foods, including inspections at the ports of entry and the use of PREDICT, its risk-based import screening tool. FDA also has issued guidance on its intentions to temporarily delay audits of requirements for supplier verification under the FDA Food Safety Modernization Act. These audits are designed to confirm compliance with safety standards but travel restrictions will likely prevent receiving facilities and importers from obtaining them for the immediate future. For verification that would include a domestic or foreign onsite audit, facilities are expected to temporarily select an alternative way to verify compliance with food safety standards, such as sampling and testing, or food safety records reviews. Yiannas further notes that FDA is helping protect workers in food facilities against infections and problems they may have getting to and from work with curfews and quarantines in certain places. He says that there are significant requirements for human food facilities to maintain clean and sanitized facilities and food contact surfaces and that workers are required to practice frequent hand washing and glove changes before and after preparing food. Yiannas notes that FDA is working closely with the food industry and existing state, local, and international regulatory partners are required to monitor and mitigate any impact on food safety and food access for the American public. This includes working with local, state and federal officials, and industry, to help ensure that food workers can get to and from their jobs in communities where curfews and shelter-in-place directives are enforced. Yiannas focuses heavily on consumer safety and confidence in food supplies and assures FSN that the agency will continue efforts to make sure that consumers have access to the foods they need for themselves, their families and their livestock. In the flurry of media talk about all things related to the virus outbreak, there have been occasional but urgent questions about food safety among those “sheltering in place.” The FSN comments by Yiannas seem timely and likely to be useful to answer a number of these, Washington Insider believes.
| Rural Advocate News | Thursday March 26, 2020 |
US Grocery Store Price Increases Remain Subdued As COVID-19 Uncertainty Arrives Difficult economic times ahead for the U.S. are poised to unfold with the COVID-19 situation, but consumers are still not faced with sticker shock at the grocery store, according to the latest update from USDA. USDA looks for overall U.S. food prices are forecast to increase in 2020 by 1.5% to 2.5% compared with 2019, nearly in line with the increase of 1.9% registered for 2019. Grocery store prices are forecast to increase from 0.5% to 1.5%, in line with the increase of 0.9% in 2019. Food at home (grocery store) prices have a 20-year average increase of 2%. The increase of 0.9% in 2019 was the biggest rise at the grocery store since prices rose 1.2% in 2015. Food away from home (restaurant) prices for 2020 are now seen rising from 1.5% to 2.5%, down from the month-ago outlook for prices for eating out to rise by 2% to 3%. The increase now forecast by USDA would be considerably under the 20-year average of 2.8%.
| Rural Advocate News | Thursday March 26, 2020 |
Senators Call for Actions on Trade Amid COVID-19 Pandemic With the COVID-19 situation expected to extract a heavy toll on the U.S. economy, a group of Senate Finance Committee Republicans are calling on President Donald Trump to take several actions on the trade front, including tariff waivers on medical products and broadening the tariff exemptions. “One area where you have immediate tools at your disposal to decrease the economic harm from COVID-19 is trade policy,” said the lawmakers in the letter spearheaded by Senate Finance Committee Chairman Chuck Grassley, R-Iowa. They noted that one area where there are “immediate tools” to “decrease the economic harm from COVID-19 is trade policy.” The lawmakers called on Trump to work with other countries to limit or remove trade restrictions on medical products needed in the COVID-19 fight. Lawmakers want the president to consider tariff relief on medical devices, to provide a temporary deferral for companies on duty collections, extending expanding tariff relief on Section 301 tariffs and to not take any new measures that “would create uncertainty or undue difficulty for American workers, families, farmers, ranchers, and businesses, and asking our global trading partners to do the same.”
| Rural Advocate News | Thursday March 26, 2020 |
Thursday Watch List: Markets Thursday morning has the usual lineup of reports at 7:30 a.m. CDT: weekly export sales, U.S. jobless claims, and an update of the U.S. Drought Monitor. Fourth-quarter U.S. GDP will also be released, followed by U.S. natural gas inventory at 9:30 a.m. USDA's quarterly hogs and pigs report is set for 2 p.m. CDT and will also compete for attention with weather, trade news and the latest coronavirus statistics. Weather Very warm, dry and windy conditions Thursday will lead to notable wildfire threats and stress to winter wheat in the Southern Plains. Elsewhere, light rain and snow will occur in the north-central Plains, with light rain in the northern Midwest. Rain expands into more of the Midwest Friday, with severe storms possible. Temperatures will be well above normal in central and southern areas and near to below normal north.
| Rural Advocate News | Wednesday March 25, 2020 |
Implementation of China Agreement Continues Implementation of the Phase One Agreement continues, according to the Department of Agriculture and the U.S. Trade Representative’s office. In a news release Tuesday, the two announced continued progress in the implementation of the agriculture-related provisions. Among the recent actions, both countries signed a regionalization agreement that, in the event of a detection of highly pathogenic avian influenza or virulent Newcastle disease in a particular region of the United States, China will allow U.S. poultry exports from unaffected areas. China also notified the U.S. of proposed maximum residue levels for three hormones commonly used in U.S. beef production. U.S. beef producers, for the first time since 2003, will have access to nearly all beef products into China. U.S. pork producers will also be able to significantly expand the types of pork products shipped to China. China also updated its list of U.S. facilities eligible to export distillers dried grains with solubles, and the U.S. Food and Drug Administration published a notice to facilitate the registration of animal feed manufacturing facilities for export to China. ************************************************************************************ Agriculture Groups Call on Lawmakers to Support Farmers A group of agriculture organizations is calling on Congress to expand the Department of Agriculture's borrowing authority under the Commodity Credit Corporation. The groups say Congress must act to ensure the CCC has the authority and funding to assist farmers and ranchers facing serious cash flow challenges during the coronavirus pandemic. The letter, addressed to both Senate and House leaders reads, "Farmers, ranchers and the supply chain that support them will not let Americans down during this unprecedented crisis, and they are asking the same of you." The organizations say, "Millions of producers will need help with cash flow given the rapid and unanticipated decline in commodity prices, the likely closures of ethanol processing plants, the effective elimination of direct-to-consumer sales and decline in full-service restaurant and school meal demand." Groups representing food, fuel and fiber signed on to the letter, including the American Farm Bureau Federation. The groups say Congress must ensure the CCC has ample authority and funding to help farmers and ranchers survive during this emergency. ************************************************************************************ NMPF Thanks USDA for Coronavirus Response, Outlines Dairy Needs Dairy farmers welcome the response by the Department of Agriculture to the coronavirus crisis, but say more relief is needed. The National Milk Producers Federation sent a letter to Agriculture Secretary Sonny Perdue detailing the needs of dairy farmers during the crisis. NMPF President and CEO Jim Mulhern says in the letter, “The demand shock experienced by our entire economy is turning what initially looked to dairy farmers like the first decent year in the last five into one of potentially widespread economic devastation." Dairy farmers expect to face price declines and unstable demand over the next several months, as joblessness rises, schools remain closed, and farm and dairy processing operations face unprecedented logistical challenges. In its letter, NMPF said it looks forward to working with the USDA in program implementation, trade facilitation and other areas, but said additional remedies will be needed. Those include additional dairy product purchases, compensation for milk disposal, and reopening of signup in the Dairy Margin Coverage program. ************************************************************************************ United Fresh Urges Congress to Take Immediate Action Produce suppliers are looking for federal assistance, as many industry sectors seek relief from the impact of the coronavirus outbreak. The United Fresh Produce Association, representing the fresh produce supply chain, has requested urgent action by Congress to mitigate the challenges facing the sectors that have been impacted most severely. The immediate impact felt by the fresh produce supply chain is $5 billion for exposure for lost inventory and risk to growers, $1 billion a week in lost sales, and tens of thousands employee furloughed, according to the organization. Those recommendations include the establishment of a $1 billion fund, to address claims filed by foodservice distributors who have outstanding expenditures to grower-shippers. However, the group says the need may skyrocket to $5 billion. The group also requests USDA Immediately make an additional $1 billion available to help meet the needs of schools and all emergency feeding sites. Finally, they request the federal government provide $225 million funding for the Supplemental Nutrition for Women, Infants, and Children to accommodate a temporary increase to the cash-value voucher benefits. ************************************************************************************ TFI Urges Governors to List Industry as Critical The Fertilizer Institute is urging state governors to follow federal guidelines and list the fertilizer industry as essential service and critical infrastructure. TFI says in a letter to governors, the declaration will “ensure that American agriculture can remain operable and continue to provide food security.” TFI represents fertilizer manufacturers, transporters, wholesalers, importers, brokers and retailers. The fertilizer industry supports nearly 500,000 American jobs and has an economic impact of over $130 billion annually. The letter says the next six to eight weeks will be crucial to its members and their farmer customers, as they conduct spring planting activities. TFI says the timely delivery of plant nutrients to American farmers is critical to their ability to produce food, fuel, and fiber. In order to get plant nutrients to the farm, the fertilizer industry relies on a safe and efficient transportation network, including rail carriers, ports, barges, pipelines, and trucks. In addition, the ability to move products across the borders of Canada and Mexico is also an important part of the fertilizer supply chain. ************************************************************************************ Fund Launched to Help Farmers Affected by the COVID-19 Crisis American Farmland Trust Tuesday announced a fund to help farmers affected by the coronavirus crisis. Announced on National Ag Day, the fund will award eligible farmers with cash grants of up to $1,000 each to help them weather the current storm of market disruptions caused by the COVID-19 crisis. The initial focus will be on farms that sell at farmers markets or to restaurants, caterers, schools, stores, or makers who use farm products. That focus could change over time as the negative impacts of the crisis become more widespread within U.S. agriculture. A new report estimates that local and regional food systems could lose up to $1.3 billion between just March and May of this year. While all farmers and ranchers will likely be seriously impacted by the market disruptions caused by the coronavirus pandemic, the organization says, "some farmers are losing their primary markets because people can't eat in restaurants or shop at farmers markets." The Farmer Relief Fund program details can be found at www.farmland.org/relief.
| Rural Advocate News | Wednesday March 25, 2020 |
Washington Insider: The Fed and Whatever It Takes As of mid-day Tuesday, there was no firm deal yet on the expected federal economic bailout. However, there was a modest amount of information regarding efforts by the central bank to keep money flowing in the economy. The Fed announcement on Monday had “lots of bureaucratic jargon and an alphabet soup of acronyms,” the Times said. However, at its core, “it was making a simple promise—to use the full range of tools to support households, businesses and the U.S. economy overall.” Most of the efforts the central bank described fall under the broad category of “buying debt,” the Times said — policies the Fed already has in motion through purchases of vast quantities of Treasury bonds — debt issued by the federal government — and mortgage debt backed by government agencies like Fannie Mae and Freddie Mac. Still, this week’s announcement went further, promising to keep buying “in the amounts needed to support smooth market functioning.” It also expanded programs that will support debt issued by companies, state and local governments, and other entities (though it won’t buy municipal debt directly). The basic problem the Fed is trying to solve is that financial markets—particularly the bond market—have nearly frozen up in recent days. By promising to buy debt, the Fed is trying to get markets working again. The report identifies two categories of American businesses--companies like airlines, hotel chains and cruise ship operators, that have seen their revenue more or less wiped out by the pandemic. Congress might step in to bail some of those companies out but there isn’t much that the Fed can do for them. Instead, the Fed will focus on businesses that are basically healthy but are threatened by the freeze-up in financial markets. Some have been insulated from the outbreak’s effects but rely on debt as part of their normal operations. Others have lost business because of the virus but could survive if they could borrow to cover their expenses. “If these corporations don’t have financing or they’re losing their access to credit, it means they’re going to have to close their doors and lay off workers,” said Michelle Meyer, chief U.S. economist for Bank of America Merrill Lynch. Those impacts make the recession spirals deeper and more prolonged.” The Times noted that “ordinarily, the Fed fights an economic slowdown by lowering interest rates.” But ultralow interest rates don’t do any good if no one will lend money, or if lenders demand a huge premium. That’s what was starting to happen in recent days. Julia Coronado, president of MacroPolicy Perspectives, an economic consultancy said. “If corporations can’t get cash and mortgage markets aren’t functioning, your low rates don’t translate to households and businesses.” By buying up government bonds and other safe assets, the Fed is trying to give investors sufficient confidence to put their money back into the bond market, which in turn should allow its interest-rate policies to work as intended. A lot of what the Fed is doing is taken from the 2008-9 playbook used by Chairman Ben Bernanke. The Fed bought Treasury notes and mortgage bonds then, though in the past it has always put a dollar figure on its bond-buying programs. It took the extreme uncertainty of the current moment to push the Fed to pledge open-ended stimulus, the Times said. The central bank is also reviving several other programs that made their debut during the last crisis. But policymakers are also taking novel steps. Most important, the Fed will effectively lend money directly to large corporations, something it has never done before. The central bank framed the program as “bridge financing” to help otherwise healthy companies keep their doors open and their workers employed during a period of disruption. The Times notes that sales have abruptly dried up for restaurants, bars, independent retailers and other small businesses, and few have the savings to survive more than a few weeks without revenue. Moreover, small businesses can’t sell stock or issue debt to raise the cash to keep going. So, the Fed said on Monday that it would establish the Main Street Business Lending Program to encourage lending to small and medium-size businesses. The Fed released few details, but said that it expects to soon. Economists said the move looked at least partly like an effort by the Fed to reassure the public that it wasn’t favoring big businesses over small ones. “I think the Fed is well aware of the optics and the messaging,” Coronado said. “It’s not always clear to people that buying billions in mortgage securities helps them, even though it does.” Earlier, the Fed, along with other financial regulators announced new steps intended to encourage banks and other lenders to cut borrowers some slack during the pandemic. The regulators basically said to go ahead and modify loans to help businesses survive. “They will not criticize institutions for doing so in a safe and sound manner.” In addition, there is a consensus among economists that until the outbreak is brought under control, both economic and monetary policy offer limited tools for government intervention — uncertainties that will continue to haunt policy makers and which should be watched closely by producers and others as the season advances, Washington Insider believes.
| Rural Advocate News | Wednesday March 25, 2020 |
CCC Funding Key in COVID-19 Aid Plans Funding for the Commodity Credit Corporation (CCC) and potentially increasing the USDA’s borrowing authority for CCC remains an issue in the efforts to put together a third COVID-19 aid package. The proposal that has been in the initial Senate plan would refund the CCC back to $30 billion and add $20 billion in additional borrowing authority. That is being eyed as a way for USDA to address impacts that have been seen in the ag industry from the COVID-19 situation, particularly for cattle producers. The COVID aid plan generated by House Democrats lacks the CCC refunding and increase in the borrowing authority.
| Rural Advocate News | Wednesday March 25, 2020 |
FSIS Offers Temporary Labeling Instructions on COVID-19 Shifts The shift of products from food service to retail establishments as the COVID-19 situation is disrupting supply chains has prompted USDA’s Food Safety and Inspection Service (FSIS) to issue some temporary guidelines that will allow the product shifts to take place. FSIS emphasized that the labeling flexibilities “apply to product that has already been produced” and any products currently being produced are still “expected to meet all requirements” for labeling. The action by FSIS addresses the potential lack of nutrition labeling for food intended for distribution to hotels, restaurants, or similar institutions (HRI) that may be repackaged and resold to retail consumers. Under the flexibilities announced by FSIS, “product produced at a federal establishment typically intended for distribution to [HRI] will have modified labels applied by the federal establishment so that the products can now be sold at retail. The label would be required to bear all required features. FSIS will not object to the use of labels without nutrition labeling,” the agency said, even if the establishment does not meet an exemption under law, “provided the labels do not bear any nutrition claims.” Products in protective coverings are eligible for the temporary flexibilities announced by FSIS for the next 60 days starting on March 23, 2020, the service said.
| Rural Advocate News | Wednesday March 25, 2020 |
Wednesday Watch List Markets Wednesday starts with a February report of U.S. durable goods orders at 7:30 a.m. CDT. Given recent sharp drops in energy prices, the Energy Department's weekly inventory report will get plenty of attention at 9:30 a.m., including numbers for ethanol. U.S. and South American weather, any trade news and the latest coronavirus statistics will also be noticed. Weather Light rain and snow will cross the Northern Plains and northern Midwest Wednesday. Other primary crop areas will be dry, with a notable warmer trend in many central and southern areas. Wildfire danger will be high in the southwestern Plains due to warm, dry and windy conditions. The generally drier trend will also allow for some easing of very wet soils ahead of spring fieldwork.
| Rural Advocate News | Tuesday March 24, 2020 |
Perdue: USDA Actively Monitoring Commodity Markets Agriculture Secretary Sonny Perdue says the Department of Agriculture is "actively monitoring all commodity markets and the flow of food." The comments on Twitter come as a reply to industry requests last week that USDA protects commodity markets from manipulation. Perdue says, "We are paying special attention to the difference in prices from the farm gate to the grocery shelf." The National Cattlemen's Beef Association sent a letter to Perdue last week, along with lawmakers, urging relief for cattle producers stemming from COVID-19. The coronavirus sent cattle markets lower, at a time when consumer demand has increased. NCBA states, "This price disturbance has created tremendous uncertainty in the cattle industry, and has come at a time when cattle producers are singularly focused on maintaining adequate supply to meat and food processors.” The organization says, “it is critical that cattle producers are empowered to maintain operational certainty as they work to ensure our nation’s food security during this crisis.” ************************************************************************************ USDA NASS Reports Remain on Schedule The Department of Agriculture’s National Agricultural Statistics Service statistical reports remain on schedule amid the COVID-19 pandemic, including the March 26 Hogs and Pigs and March 31 Prospective Plantings reports. NASS reports the agency also continues to collect data for all upcoming reports, asking farmers and ranchers to complete their surveys online, if they don’t already respond that way. To protect the health and safety of producers, partners, and employees, NASS has suspended in-person data collection at least until April 3, 2020. NASS Administrator Hubert Hamer says, “We are making every effort to produce the U.S. crop, livestock, and economic statistics that the nation counts on, but to do that responsibly, we are following guidance to slow the spread of coronavirus.” Ensuring that responses are returned on time means little or no additional outreach is needed. USDA says online response is faster and more convenient for producers. To respond online at agcounts.usda.gov, producers will need their unique 17-digit survey code from the questionnaire or letter received in the mail. ************************************************************************************ USMEF Applauds Expanded Access to China A recent move to expand pork and beef access to China will benefit U.S. producers and exporters, according to the U.S. Meat Export Federation. The Department of Agriculture’s Food Safety and Inspection Service recently updated its Export Library for China to reflect expanded access for U.S. beef and pork. The changes were among the provisions negotiated in the U.S.-China Phase One trade agreement. U.S. Meat Export Federation President and CEO Dan Halstrom says with much broader access for U.S. beef, "the U.S. industry is well-positioned to expand its presence in the largest and fastest-growing beef market in the world." U.S. pork and beef still face retaliatory duties in China, but a tariff exclusion process implemented by the Chinese government earlier this month is providing some level of relief. USMEF states that while elimination of all retaliatory duties is still the best way for China to level the playing field for U.S. red meat, the exclusion process is expanding opportunities for importers and the U.S. industry. ************************************************************************************ Gas Prices Continue to Plummet For the fourth straight week, the national average price of gasoline has fallen, plummeting 12.8 cents over the last week to $2.08 per gallon, according to GasBuddy. The average price of diesel, meanwhile, fell 6.5 cents to $2.66 per gallon. Gas prices have spent virtually all of March marching lower, with the drop continuing as the coronavirus destroys oil demand globally, according to Patrick DeHaan of GasBuddy. DeHaan says, “there’s plenty more room for prices to drop, putting 99 cents per gallon prices as a strong possibility for perhaps many more stations than we previously anticipated.” Crude oil prices have continued to be under heavy selling pressure due to the coronavirus’ effects on global demand for products including gasoline, diesel and jet fuel. Additionally, a meeting March 5 by OPEC and Russia on how to stem the previous decline in oil resulted not in a production cut, but a feud between the two, with Saudi Arabia and Russia both saying they were going to raise oil production. ************************************************************************************ DFA Dean Foods Deal Withdrawn Dairy Farmers of American and Dean Foods announced the withdrawal of a plan for DFA to purchase Dean assets. DFA remains in the running to purchase Dean assets, but the move allows for a competitive bidding process. In a statement, Dean Foods says, "by avoiding unnecessary litigation regarding procedure and bid protections for DFA, all parties involved, including DFA, will focus on developing competitive and value-maximizing bids." The Kansas City Business Journal Reports DFA, based in Kansas City, remains in the running to buy the nation's largest milk processor, but it no longer has an inside track. Dean Foods filed for Chapter 11 bankruptcy in November, and will have its assets sold in a court-administered auction process. In February, DFA made an offer to buy Dean Foods for $425 million-plus the assumption of various liabilities. Officials with Dean and DFA said Friday that they mutually agreed to withdraw the request that DFA's bid be considered the baseline. ************************************************************************************ USDA Announces New World Agriculture Outlook Board Chair Chief Economist Robert Johansson Monday announced the appointment of Dr. Mark Jekanowski as the World Agricultural Outlook Board Chairman. Jekanowski is currently acting Board chairman and will assume his new duties on March 29. Johansson says Jekanowski brings “extensive experience in domestic and global agricultural commodity markets and deep understanding of the World Agricultural Board and its unique mission Jekanowski will be responsible for leading the development and release of the monthly World Agricultural Supply and Demand Estimates report. He will also serve as program chairman for USDA’s largest annual meeting, the Agricultural Outlook Forum. Jekanowski joined the World Agricultural Outlook Board in 2019 as deputy chairman. Before that, he was with USDA's Economic Research Service (ERS), first serving as chief of the Crops Branch, and later as deputy director for the ERS commodity outlook program. Previously, Jekanowski was a senior vice president and head of the Washington office of Informa Economics.
| Rural Advocate News | Tuesday March 24, 2020 |
Washington Insider: Humanitarian Crisis in Iran Almost everything is about the virus these days, but some of the news is deeply nuanced. For example, the U.S. is being pressed to ease sanctions on the Islamic Republic of Iran, but is pushing back, Bloomberg says. Iran has reported more than 1,800 deaths from the pandemic and its leaders and some aid groups say America’s crushing “maximum pressure” campaign against it is worsening a humanitarian disaster. The U.S. says it stands ready to help Iran — although it simultaneously blames the crisis on the regime’s mismanagement. “U.S. sanctions are not preventing aid from getting to Iran,” Brian Hook, the State Department’s point person on Iran issues, said. “The ayatollah has vast resources at his personal disposal. We have broad exemptions that allow for the sale of medicines and medical devices by U.S. persons or from the United States to Iran.” However, finding companies that are willing to navigate U.S. rules in an effort to sell to Iran but sidestep punishing American sanctions has been difficult since the U.S. administration began ratcheting up pressure in 2018. That makes it even harder to get purely humanitarian goods into the country, said Tara Sepehri Far, a researcher in the Middle East and North Africa division of Human Rights Watch. “These exemptions have failed to offset the strong reluctance of U.S. and European companies and banks to risk incurring sanctions and legal action by exporting or financing exempted humanitarian goods,” said Sepehri Far. “We saw letters by banks and companies refusing to conduct humanitarian trade with Iran.” Iranian President Hassan Rouhani on Monday dismissed U.S. overtures as dishonest and he called the Trump administration “terrorists in the true sense of the word” for subjecting his country to relentless sanctions while expressing an interest in helping. Secretary of State Mike Pompeo retorted that the “regime ignored repeated warnings from its own health officials, and denied its first death from the coronavirus for at least nine days.” He asserted that the number of cases and deaths in Iran is “far higher than the regime admits.” Jarrett Blanc, a senior fellow at the Carnegie Endowment for International Peace and a former State Department coordinator for Iran nuclear implementation under President Barack Obama, said that previous U.S. administrations would typically send officials to Europe and Asia to help ease the path to humanitarian aid by clarifying how the exemptions work. President Donald Trump on Sunday suggested his offers for assistance to Iran — as well as North Korea — to combat the virus are genuine, saying “Iran is really going through a difficult period with respect to this.” Yet some members of the Trump administration have speculated in private that with all the challenges Iran faces — the sanctions, a teetering economy, disputed elections and animosity over the violent suppression of protests — the coronavirus epidemic might be the thing that pushes the regime from power at last. And, even as the outbreak has spread in Iran, the U.S. has continued to impose more restrictions, targeting a group of companies involved in the petrochemical trade and a handful of nuclear scientists in successive measures this month, Bloomberg says. The U.S. administration says its sanctions are aimed at pressuring Iran’s leadership into abandoning its nuclear program, ending support for groups in the region such as Hezbollah and halting the development of ballistic missiles. China and Russia — former partners in the 2015 Iran nuclear deal that the U.S. administration abandoned — have stepped up calls for the U.S. to relax its sanctions. While that’s not surprising, there are signs that European countries are increasingly crossing the sanctions threshold and helping Iran where they can, according to one Western diplomat in Tehran. That’s because the U.S. stance amid the crisis is frustrating many European Union nations, the diplomat said. Pakistan’s Prime Minister Imran Khan also urged the U.S. to lift sanctions after his country’s coronavirus cases surged when Pakistani pilgrims returned from Iran last week. The two nations share a long land border. Even before the coronavirus outbreak, the U.S. was at odds with other world powers, who disagreed with the president’s decision to pull out of the nuclear deal in 2018 and reimpose sanctions. The UK has quietly prodded the Trump administration to ease sanctions because of the crisis, the Guardian reported, without saying where it obtained the information. On March 17, Iran granted temporary release to British-Iranian Nazanin Zaghari-Ratcliffe, who has been in jail in Tehran since 2016. Humanitarian organizations, unwilling to pick a public fight with a top contributor, are quietly trying to get supplies into Iran despite U.S. restrictions. Iranians say that their economy is weak and unable to cope with the humanitarian toll because of the U.S. sanctions. Last week, Iran turned to the International Monetary Fund for the first time since the 1960s for aid, though Ali Vaez, the Crisis Group’s Iran project director, said the U.S. may try to block the IMF loan in order to keep up the pressure on the regime. “Countries like Italy and South Korea, who were not hampered by sanctions, found it difficult to contain and fight the outbreak,” he said. “Iran is now fighting it, albeit belatedly, with one hand tied behind its back by sanctions. Its failures, partly due to sanctions, will affect everyone else in the region and beyond.” So, we will see. It will be politically difficult for the administration to ease its sanctions on Iran, but also difficult to ignore humanitarian claims — issues that have the potential to raise tensions in an already tense region, Washington Insider believes.
| Rural Advocate News | Tuesday March 24, 2020 |
FSIS Makes Several Changes to US Export Policies For China USDA’s Food Safety and Inspection Service (FSIS) late last week unveiled a host of changes in the U.S. export library for meat products to China reflecting terms of the phase-one agreement. Most of the actions detailed by FSIS involve the moves made by China to remove the age limit on beef and the setting of maximum residue limits (MRLs) on beef hormones. The guidance also reminded exporters are urged to “to work closely with their importer regarding Chinese standards of meat and poultry products intended for export to China.” Meanwhile, China has indicated it will move away from a nationwide ban on imports of U.S. poultry should the U.S. experience a case of avian influenza, another component of the phase-one agreement between the two countries.
| Rural Advocate News | Tuesday March 24, 2020 |
USTR Defends Tariffs on China, But Seeks Input on Potential Exemptions The Office of the U.S. Trade Representative (USTR) is defending the imposition of tariffs on China under Section 301 of U.S. trade law, noting they have exempted several “critical products” like ventilators, oxygen masks, and nubilators and issued tariffs exemptions on large numbers of health-related products. U.S. imports of all critical medical and pharmaceutical products were up over 20 percent since 2017, before Section 301 tariffs were imposed, USTR said. However, they announced they have now opened a new docket for the public, businesses and government agencies to submit comments “if they believe further modifications to the 301 tariffs may be necessary. This comment process does not replace the current exclusion process and supplements that process. Submissions are limited to comments on products subject to the tariff actions and relevant to the medical response to the coronavirus.”
| Rural Advocate News | Tuesday March 24, 2020 |
Tuesday Watch List Markets Tuesday has a report on February new home sales set for 9 a.m. CDT. Traders will be keeping watch over the latest coronavirus news, a possible stimulus bill from Congress and the latest Fed moves. Weather remains important, as always and traders will also show interest in any news pertaining to South American ports. Weather Tuesday will feature shower and thunderstorm activity in the southern Midwest, northern Delta and Mid-South. Spring fieldwork will be delayed in these areas. Other crop areas will be dry, offering some chances for fieldwork along with delayed northern corn harvest.
| Rural Advocate News | Monday March 23, 2020 |
State Department will Keep Processing Seasonal Ag Worker Visas The U.S. State Department said late last Thursday that it will keep processing visas for seasonal workers. That statement came shortly after an announcement that it would suspend routine visa services in most countries indefinitely. The Wall Street Journal says the reversal came as lawmakers asked the administration to do whatever it could to keep seasonal workers available for U.S. agriculture. Farmers warned that suspending access to immigrant labor, much of which comes from Mexico, could threaten their livelihoods and the productivity of U.S. agriculture. Seasonal labor makes up as much as ten percent of the workforce for farmers. And it isn’t just agriculture that needs foreign labor. Other industries that specifically rely on Mexican labor include fisheries and resorts. A State Department spokeswoman says they are well aware of the importance of the H-2 program to the economy and the food security of the United States. “We are reviewing all possible options,” she says. The state department initially decided to suspend routine visa processing in most countries worldwide in response to the coronavirus pandemic. Department officials have said the most likely approvals will come for returning workers who qualify to skip a visa interview. ********************************************************************************************** Agriculture Among Nation’s Most Critical Industries The Department of Homeland Security affirmed just how important agriculture is to the U.S., especially during a pandemic like the coronavirus outbreak. DHS says public health, law enforcement, food and agriculture, defense, and 12 other industries are “critical,” and should keep to their usual work schedules to help respond to the outbreak. The guidance from DHS is designed to help limit potential confusion as some state and local governments implement various curfews or bans on large gatherings to slow the spread of the coronavirus. Over 60 groups that represent the food, beverage and consumer packaged goods asked for uniform guidance on what businesses are exempt from those restrictions. The National Council of Farmer Cooperatives applauded the move, saying, “As we face an unprecedented crisis, Americans will continue to be able to find nutritious food on store shelves.” It also provides much-needed reassurance for our farmers as planting season gets underway. A release from the NCFC says, “America’s co-ops and their farmer-owners stand ready to play their part in the nation’s food supply chain. As we’ve seen so many times in American history, our farmers and ranchers will rise to meet the challenge.” ********************************************************************************************** Tyson says Meat Supply will be Restocked Soon Grocery store shelves will soon be restocked with meat products in “another week or so.” Politico says that announcement comes from Tyson Foods CEO Noel White after a recent surge in demand for meat products. The U.S. has ample food supplies for those staying home under “social distancing” policies. White says Tyson has made changes to its processing facilities to increase supplies for grocery stores instead of restaurants. “Once we are able to replenish supplies, which is probably going to take another week or so, then I think we’ll be back in better equilibrium between supply and demand,” White says. Grocery stores’ meat orders were significantly higher than usual through last week after demand began to shift away from restaurants. Slaughterhouses are running at maximum capacity, even on weekends. The North American Meat Institute, which represents major meatpackers, says the industry is taking steps to keep operations running at normal or increased capacity. Companies are also enhancing benefits like paid sick leave and access to health care to treat or detect the virus. Some of the enhancements include waiving copays or deductibles. ********************************************************************************************** NCBA Asks Capitol Hill about Help for Cattle Producers National Cattlemen’s Beef Association Vice President of Government Affairs Ethan Lane says NCBA has been working hard to help cattle producers through the challenges of COVID-19. “As the country reels both economically and emotionally from the spread of COVID-19,” Lane says, “we have worked hard to ensure that cattle producers remain able to focus on the national infrastructure priority of keeping high-quality beef available to consumers.” Lane also says meeting the challenge requires federal officials at the Departments of Agriculture, Transportation, Interior, Treasury, and more to have a full understanding of how their product gets from the pasture to the plate, and his organization is happy to tell that story. He says COVID-19 has dealt a challenging hand to producers across the country. The resulting highly-volatile markets can’t be allowed to force America’s ranching families out of business just when consumers need them the most. “in order to combat this burden, NCBA has actively engaged leaders in the U.S. House and Senate to ensure that relief funds from any aid package reach these struggling cattle producers directly.” The NCBA says it’s important that any relief avoids the lasting market-altering effects of a price-support program, which some members of the Senate have advocated for. ********************************************************************************************** Ethanol Industry Feeling the Strain of COVID-19 Many ethanol plants have cut their production over the last week, or they’ve entirely shut down as the coronavirus outbreak cuts into fuel consumption. Reuters says the drop in consumption at the pump has hit margins to refine the corn-based fuel hard. Renewable Fuels Association Chief Executive Geoff Cooper says he expects ethanol production to fall even further. He’s asking the Environmental Protection Agency to ease the strain on the industry by not granting any more of the small refinery waivers from the nation’s biofuels mandate. The coronavirus spread has disrupted business, travel, and daily life. Governments around the world are urging people to stay indoors to help limit the potential spread of the outbreak, which has put a big damper on fuel demand. Margins to produce ethanol have dropped considerably, causing plants to begin looking at a combination of shutdowns and layoffs. An ethanol refiner from Claremont, Minnesota, says they’re doing everything they can to make sure they’ll weather and survive the economic storm, “but it’s definitely going to be ugly.” ********************************************************************************************** Thefts and Scams Targeting Cattle Producers are Rising The COVID-19 outbreak has already hit the cattle markets hard. However, that’s not the only threat to ranchers’ livelihoods out there. Scott Williamson is Executive Director for Law Enforcement with the Texas and Southwestern Cattle Raisers Association. He says thefts and scams targeting cattlemen are on the rise. “Economic and industry distress always increase the number of desperate people that will take fraudulent, dishonorable, and criminal actions,” he says. “You may feel like you need to be in a hurry to sell some cattle before it gets worse, or hurry to buy cattle while the prices are low. Slow down because con men and thieves are taking advantage of this situation.” It’s especially important to be careful when buying and selling over the internet. Williamson received a call from a cattleman that had purchased a truckload of cows represented as one thing, but when they arrived, the truckload was something else entirely. Unfortunately, the buyer had already wired the money. He says it’s important to verify the person you want to do business with is a trusted source. When selling, use something like an escrow service or online payment system. Never accept any check worth more than the sale’s value. Never issue payment until the items are received, unless you have complete trust in the seller.
| Rural Advocate News | Monday March 23, 2020 |
Washington Insider: Dealing with the Coronavirus Economic Threat There is broad agreement among U.S. economists now that the economic downturn will be severe with the main unknowns the length of contagion and the economic policy response. Still, Bloomberg notes that many analysts and investors are taking heart from signs of revival in the original epicenter of the coronavirus – China – and predicting a second-half upturn in the U.S. after the contagion hopefully subsides. There also are strong signs of agreement in Congress and the administration regarding a large stimulus package, although the Senate leadership announced on Sunday that there were still some main details to be worked out. As early as last weekend, President Trump and others had expressed confidence that they would be able to close on a coronavirus economic-relief plan that the top White House economic adviser, Larry Kudlow said, would provide a $2 trillion boost to the U.S. economy. The economic measure is intended to “keep companies together, keep workers paid, so they can live and sustain,” President Trump said earlier in the week. On Saturday, Larry Kudlow told reporters as he arrived for White House talks that the spending bill itself is expected to total $1.3 trillion to $1.4 trillion, plus additional loans that would eventually be paid back, for a total economic impact of about $2 trillion. “The package is coming in at about 10% of GDP. It’s very large,” Kudlow said. Press reports indicate that Treasury Secretary Mnuchin and Senate Democrats have been working closely to expand the GOP’s basic economic building blocks to provide the Democratic votes needed to pass both chambers of Congress and gain the President’s signature. “The building blocks of this thing are pretty much in place,” said No. 2 Senate Republican John Thune of South Dakota. A $1.4 trillion third-stage package would be dramatically higher than the 2008 economic rescue plan that was designed to address the banking-based financial crisis. That package included $700 billion – and would be valued at $841 billion in today’s dollars. “This is going to be the largest, when it’s concluded, relief package in history,” Sen. Bob Menendez, D-N.J., said. “So yes, speed is necessary. But getting this done right so that it actually has the effect that we want is equally as important.” One detail that was being discussed on Sunday was a push by Democrats to fund an increase in weekly unemployment benefits by about $600 across the board. Though states administer unemployment compensation, the federal government has provided additional funds to temporarily expand it in the past, including the aftermath of the 2008-2009 financial crisis. That portion is intertwined with the GOP Senate plan to provide $1,200 in tax rebates to most individuals. Mnuchin has proposed two $1,000 checks for individuals at a cost of about $500 billion – substantially more generous than the GOP bill. Lower income filers are expected to receive the highest rebate benefit, rather than a tiered one that gradually increased, as in the original Senate GOP proposal. A second tough issue involved Democrats’ agreement with the Treasury Department’s push to expand the Federal Reserve’s authority for an emergency credit facility to be managed by Treasury that Democrats want to be much broader than the administration’s proposal to backstop large companies and expand the Fed’s legal authority to support distressed state and local governments, something Republicans object to. “I don’t think we should be bailing out governments right now,” said Sen. Richard Shelby, R-Ala., chairman of the Senate Appropriations Committee and former chair of the Senate Banking Committee. “We should be trying to get to mitigate the economic fallout and find a solution to the health situation.” In addition, a group of airlines said in a letter to congressional leaders Saturday that they won’t furlough workers through the end of August if Congress provides $29 billion in grants. The letter pushes back on the Senate Republican proposal to give them $58 billion in loans, with no grants. The industry initially requested $29 billion in grants and $29 billion in loans. It wasn’t immediately clear whether the $1.4 trillion figure cited by Kudlow on Saturday included a $45.8 billion supplemental spending proposal from the White House. It includes $8.3 billion for the Department of Defense to protect service members, about $11.5 billion for the Department of Health and Human Services, and $3.4 billion for the Centers for Disease Control and Prevention. House Democrats have pushed for the supplemental to be included in this “phase three” bill, but they also believe the request was not big enough, House Appropriations spokesman Evan Hollander said. “One of the goals in this package is to do everything we can to not have to do a phase four,” said GOP Senator Kevin Cramer of North Dakota. “That’s why I think you’re going to see a really big bill.” So, we will see. It is true that some of the remaining details that need to be agreed before the deal is fully complete are quite sensitive – but there does appear to be strong political support for the overall massive relief package of the type being prepared. Certainly, this is an economic intervention that is far larger than those in the past and deserves close scrutiny as the Congress and administration prepares to try to deal with this new pandemic threat, Washington Insider believes.
| Rural Advocate News | Monday March 23, 2020 |
US Custom Harvesters Raise Concern on H-2A Situation U.S. Custom Harvesters Inc. is the latest group to highlight issues that could unfold with temporary workers that enter the U.S. on H-2A visas in the wake of the State Department scaling back approvals in the wake of the COVID-19 situation. Without those overseas workers, their businesses cannot complete their jobs, USCHI said. Closures of DMV offices in areas around the country and waiting periods mean companies “will not be able to license any drivers,” a factor as companies have workers traveling from February through December to chop and harvest crops. With some restaurants and grocery stores closed or limiting their operations, the group said that complicates their ability to provide resources for the crews that range from five to 100 people. “We are an essential part of the food supply chain and must be allowed to continue our work,” said Glen Jantzen, USCHI President, and owner of Jantzen Harvesting in Plymouth, Nebraska.
| Rural Advocate News | Monday March 23, 2020 |
Agriculture Considered a Critical Infrastructure Industry As various actions are being taken by states to address the coronavirus (COVID-19) situation, including shelter-at-home orders or other restrictions, an arm of the Homeland Security Agency released a memo that outlines 16 areas that are considered to be critical infrastructure industries. Agriculture is considered to be one of those industries, according to the Cybersecurity and Infrastructure Agency (CISA), as they say that those working in the sector are “essential, critical infrastructure workers.” “Agriculture comprises establishments primarily engaged in growing crops, raising animals, harvesting timber, and harvesting fish and other animals from a farm, ranch, or their natural habitats,” CISA said. “Food establishments transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food and beverage products.” Further, the CISA memo indicated, “The food and beverage products manufactured in these establishments are typically sold to wholesalers or retailers for distribution to consumers.” “If you work in a critical infrastructure industry, as defined by the Department of Homeland Security, such as healthcare services and pharmaceutical and food supply, you have a special responsibility to maintain your normal work schedule,” CISA said.
| Rural Advocate News | Monday March 23, 2020 |
Monday Watch List Markets Traders will be scoping the latest coronavirus numbers for any clues of how things are going after another weekend of social separation. With spring officially underway, weather forecasts take on new importance for early fieldwork ahead of planting in the U.S., while South America advances its growing season and soybean harvest. USDA's weekly report of export inspections is due out at 10 a.m. CDT, followed by a monthly cold storage report at 2 p.m. Weather Monday will be dry across most primary crop areas. Exceptions will be in portions of the Southeast and the extreme eastern Midwest, where rain and some snow will develop. This combination is favorable for soil moisture drainage ahead of spring fieldwork.
| Rural Advocate News | Friday March 20, 2020 |
USDA and DOL Announce Information Sharing to Assist H-2A Employers Agriculture Secretary Sonny Perdue Thursday announced a partnership to help agriculture find labor. The partnership between the Department of Agriculture and the Department of Labor seeks to help facilitate the identification of foreign and domestic workers, specifically those that may be available and eligible to transfer to other U.S. agricultural sector employers to fulfill needs under existing regulatory authority during the COVID-19 pandemic. Secretary Perdue says of the partnership, “Ensuring minimal disruption for our agricultural workforce during these uncertain times is a top priority for this administration.” USDA and DOL have identified nearly 20,000 H-2A and H-2B certified positions that have expiring contracts in the coming weeks. There will be workers leaving these positions who could be available to transfer to a different employer’s labor certification. The data, available on www.farmers.gov, includes the number of certified worker positions, the current employer name and contact, attorney/agent name and contact, and the worksite address. ************************************************************************************ FDA Scaling back Some Domestic Inspections The Food and Drug Administration announced a scale-back of domestic inspections to protect agency workers. Specifically, the FDA has temporarily postponed all domestic routine surveillance facility inspections. These are facility inspections the FDA traditionally conducts every few years based on a risk analysis. The FDA says all domestic for-cause inspection assignments will be evaluated and will proceed if mission-critical. In keeping with federal guidance, this week, the FDA also directed all eligible FDA employees to begin teleworking. While this does not apply to those carrying out non-portable activities, such as certain lab activities or the monitoring of imported products, the agency will continue to adjust its approach to several activities, including facility inspections for all FDA-regulated products such as food, animal feed, drugs, biological products, devices and tobacco. Earlier this month, the FDA announced the postponement of most foreign facility inspections through April and that inspections outside the U.S. deemed mission-critical will be considered on a case-by-case basis as this outbreak continues to unfold. ************************************************************************************* Coronavirus Bill Includes Nutrition Provisions The first approved coronavirus bill includes several nutrition provisions. Congress passed the Families First Coronavirus Response Act, signed by President Donald Trump Wednesday. Among other things, the legislation provides more than $1 billion to provide food to pregnant women and mothers with young children, help food banks, and provide meals to families and seniors. The bill creates a Health Emergency Supplemental Nutrition Assistance Program to allow states to increase benefits for families who need additional food assistance during this crisis. The legislation also lifts certain restrictions that make it harder for families to continue to get food during this time. The legislation also Improves child nutrition programs to allow schools and nonprofits to serve children during closures and allows multiple meals to be taken home or delivered. The bill allows alternative meal distribution methods such as mobile delivery. Additionally, the bill expands eligibility to schools and nonprofits, establishes a Pandemic Electronic Benefit Transfer for families that rely on school meals, expands food distribution through food bank funding, and allows states to waive burdensome requirements. ************************************************************************************* NCGA Assembling Coronavirus Task Force The National Corn Growers Association Thursday announced the formation of a task force to assess coronavirus impacts. The NCGA task force will provide recommendations on recovery efforts and facilitate coordination along the value chain. The task force will compile more information, coordinate with the industry, and provide recommendations to mitigate the economic fallout. NCGA President Kevin Ross says, "We're in unchartered territory here, the economic impacts across all industries are likely to be massive, and we encourage you to be patient as we come together to get through this challenging time." NCGA’s Board of Directors has also commissioned an economic analysis of implications for corn farmers to evaluate how best to move forward. Further, as congressional leaders and the Trump Administration have indicated there will likely be many federal efforts to address the economic fallout of COVID-19, NCGA’s Public Policy team is making sure the Department of Agriculture and lawmakers in Congress know what farmers experiencing on the ground. ************************************************************************************* Ethanol Demand Declines as Americans Stay Home Gasoline demand in the United States is falling, along with demand for biofuels. As Americans stay home amid the national shut in to slow the spread of COVID-19, many are working from home and not needing as much fuel for their vehicles. Now, the U.S. ethanol industry is urging the Trump administration to adhere to a court decision that would limit small refinery waivers. The American Coalition for Ethanol says preliminary economic forecasts estimate the lack of gasoline consumption caused by the coronavirus will likely reduce ethanol demand by hundreds of millions of gallons and "cut corn grind by hundreds of millions of bushels." Additionally, the organization says the Environmental Protection Agency should restore 500 million gallons to the Renewable Fuel Standard in compliance with the 2017 D.C. Circuit Court case regarding the improper use of EPA's waiver authority. ACE is also asking President Donald Trump to reduce or remove Chinese tariffs on DDGs, as China earlier this week released a list of U.S. companies eligible to export DDGs. ************************************************************************************* Study Finds U.S. Soybean Industry Has $115 Billion Impact on the American Economy A new study shows the economic impact on the U.S. economy from the soybean sector averaged $115.8 billion, based on data from 2014-15 and to 2016-17. The National Oilseed Processors Association Thursday announced the study, The Economic Impact of the U.S. Soybeans and End Products on the U.S. Economy. The study examines the value of the American soybean industry. NOPA partnered with the United Soybean Board in commissioning an independent economic consulting firm to develop the study. The study found the soybean sector supported an average of 357,000 people, comprising 280,000 paid, full-time equivalent jobs as well as an additional 78,000 family members, beyond growers themselves, who support and are supported by soybean farming operations. The total wage impact of the sector averaged $11.6 billion. Economic impacts highlighted in the study are quantified in terms of revenue, wages, jobs, and number of people dependent on the sector — all focused on the production, distribution and use of soybeans, across the value chain. Find the report online at www.nopa.org.
| Rural Advocate News | Friday March 20, 2020 |
Washington Insider: Push Back on Calls for Tariff Relief Bloomberg and others are reporting this week that hardly a day goes by right now without business groups calling on the White House to suspend tariffs on Chinese goods in an effort to help them stem the growing challenges faced by the U.S. economy. For example, on Wednesday, Americans for Free Trade, a group of more than 160 business associations, urged the administration to consider relief from duties as one of the emergency measures the administration is rolling out. “These tariffs are taxes that Americans pay,” the group said. Hours later, the President publicly slashed those hopes. “There’s no reason to do that. China is paying us billions and billions of dollars in tariffs,” he said. “I can’t imagine Americans asking for that.” Over the course of his presidency, the administration has imposed tariffs on a total of more than $400 billion in goods, ranging from Chinese apparel imports and French cheeses to European aircraft. Economists say those duties are either absorbed by companies or added to the price tag for U.S. consumers, meaning “they’re not paid by China as the White House often claims.” Complicating the matter is that many of the same small- and medium-size enterprises such as retailers or manufacturers that were hurt by the administration’s tariff battles also are now suffering from the economic fallout of the coronavirus outbreak, Bloomberg says. Business representatives admit it’s not clear that targeted tariff cuts would have a significant impact on the broader economic outlook “but eliminating their levies certainly wouldn’t hurt,” they said. Behind the scenes, the discussion about tariff relief has for weeks caused heated debates among administration officials as well as outside allies, including lawmakers. Larry Kudlow, the White House economic adviser, has been among the most vocal aides to make the case for relief, Bloomberg said – although a White House spokesman denied that Kudlow was making the case for tariff relief. The American Iron and Steel Institute on Tuesday also warned of the potential negative consequences from tariff cuts. “The coronavirus epidemic is exacerbating the global glut in steel production and threatens to unleash a new surge in imports into the United States, which would be devastating to the American steel industry and our national security,” the group argued in letters to lawmakers. Despite its reluctance to cut tariffs, the administration has moved quickly to exempt a range of products that are essential to the U.S. coronavirus response. The Office of the U.S. Trade Representative in recent weeks has granted exclusions for face masks, gloves and other medical supplies that are solely sourced in China. Still, rhetoric has become more hostile between the U.S. and China recently, Bloomberg notes. The president has shifted from praising Chinese President Xi Jinping for his prompt containment of the virus to blaming the world’s second-largest economy for spreading the disease, which he now calls the “Chinese virus.” In a recent report the New York Times said that the coronavirus outbreak “is prompting a heated debate among lawmakers and the White House over whether the Trump administration should remove the tariffs it has imposed on China and other nations to provide some economic relief.” Supporters of lifting the tariffs, even temporarily, say it would be a simple and immediate way to help U.S. businesses and consumers struggling with higher costs from the president’s tariffs on foreign steel, aluminum and more than $360 billion of Chinese goods. These are “chipping away” at profits for companies that depend on imported goods and parts, slowed business investment and weighed on households, particularly those on the lower end of the income scale. However, China hawks warn that the Chinese government and businesses will take advantage of any pause in tariffs to capture a larger share of global industries, putting Beijing on a dominant course for years to come. Some argue that the tariffs are impeding the ability of American hospitals and doctors to respond to the coronavirus, since China produces a large share of the medical goods and supplies used in the United States, the Times said. Leading business groups including the U.S. Chamber of Commerce, the National Association of Manufacturers and the U.S.-China Business Council have pressed the administration to roll back tariffs permanently as part of its emergency economic response. Scott Kennedy, a China expert at the Center for Strategic and International Studies, said that some Chinese companies might try to take advantage of market dynamics by cutting out competitors, but that, on the whole, China’s recovery would be helpful, rather than harmful, for restarting economic growth worldwide. “In sum, the world should welcome a recovering Chinese economy but simultaneously be vigilant against a possible jump in uncompetitive behaviors,” he said. So, we will see. Clearly, the COVID-19 outbreak is sharply increasing economic pressure on the global economy and the increasing trade tensions appear likely to exacerbate economic headwinds for most exporters. These trade and economic policy debates should be watched closely by producers as they intensify, Washington Insider believes.
| Rural Advocate News | Friday March 20, 2020 |
Farm Bureau Keeps Pushing on H-2A Workers U.S. agriculture remains focused on labor shortages amid COVID-19 as the U.S. State Department shut down processing of new H-2A visa requests in Mexico. The agency said it would continue to process requests from those considered to be “returning” workers – those that have had H-2A visas previously. However, it is not clear how many H-2A applicants fall under that category. The American Farm Bureau Federation (AFBF) held a call Wednesday, highlighting the situation. In 2019, around 35,000 H-2A workers came into the U.S. during the first quarter of the year, AFBF officials said with the number of workers arriving in the second quarter rising – 34% of H-2A workers entered during the second quarter with another 30% in the third quarter.
| Rural Advocate News | Friday March 20, 2020 |
DOT Issues More Hours of Service (HOS) Regulatory Relief Including For Livestock The Department of Transportation (DOT) issued a declaration waiving hours of service (HOS) requirements for commercial vehicle drivers transporting a host of goods. Much attention is on the items on the list including medical supplies and equipment related to the testing, diagnosis and treatment of COVID-19. But the order also applies to supplies and equipment needed for community safety and the mention of goods like food, paper products and other groceries for emergency restocking of distribution centers or stores, the provision covering “immediate precursor raw materials — such as paper, plastic or alcohol — that are required and to be used for the manufacture of essential items is the most important for agriculture. The Livestock Marketing Association said they have received official interpretation from the office of the Transportation Secretary that livestock is considered to be one of the “immediate precursor raw materials” and thus is covered by the expanded March 18 declaration.
| Rural Advocate News | Friday March 20, 2020 |
Friday Watch List Markets The first day of spring may not bring relief from coronavirus worries, but there will be a report of U.S. existing home sales for February out at 9 a.m. CDT, followed by a March 1 U.S. cattle on-feed report at 2 p.m. Traders will be watching for news of possible port closings, along with any other trade news and South American weather reports. Weather Moderate to locally heavy rain will extend from southeastern Texas northeast through the Delta and eastern Midwest Friday. Flood threat is high in areas that have already had heavy precipitation in the past few weeks. We'll also see wintry mix precipitation and cold winds in the western Midwest and Northern Plains. Other crop areas will be dry going into the weekend.
| Rural Advocate News | Thursday March 19, 2020 |
Farm Bureau Highlights Immediate Challenges Facing the Agriculture Sector The American Farm Bureau has released its first assessment of the impact on farmers and ranchers in the wake of the national mitigation efforts to combat COVID-19. In a letter to Agriculture Secretary Sonny Perdue, AFBF President Zippy Duvall pledged, "America's farmers and ranchers will be with you every step of the way." The letter, which will be updated as new issues materialize, outlines concerns from Farm Bureau members across the country. Those concerns include H-2A labor issues, With the State Department's announcement to suspend all processing of new, non-emergency visa applications in Mexico, U.S. farms and ranches could face a serious labor shortage at a critical time for planting and harvesting crops essential to the domestic food supply. Additionally, AFBF noted supply chain concerns and market concerns. Duvall noted concerns from livestock producers regarding market manipulation and urged USDA to monitor the situation to protect ranchers and consumers alike from price manipulation. ************************************************************************************* NPPC Renews Call for Labor Solutions The National Pork Producers Council Wednesday renewed its call for government help to prevent a severe labor shortage from becoming a crisis. The decision by the U.S. State Department to suspend visa processing in Mexico threatens to worsen the labor shortage in the pork industry and across U.S. agriculture, according to the organization. Mexico is an important source of labor for U.S. hog farmers and packing plants. NPPC President Howard "A.V." Roth says, "we are very concerned" about the State Department's action and its implications on the U.S. pork industry. The pork industry, a farm sector that operates year-round, uses the H-2A visa program for specialized work, but cannot use the program for most labor needs because of its seasonal limitation. Hog farmers are major users of the TN visa program, which taps labor from Mexico. NPPC also seeks clarifications from the U.S. Department of Transportation that farms are part of the critical domestic infrastructure needed to produce the food that feeds America and the world. ************************************************************************************* Senators Seek COVID-19 Federal Help for Rural Areas A group of farm-state Senators seeks additional assistance from federal agencies for rural areas to cope with COVID-19. 24 Senators penned a letter to the Department of Interior and the Federal Emergency Management Agency, along with the Department of Homeland Security earlier this week. The letter requests “immediate assistance in mobilizing agencies to offer coordinated support for rural counties, municipalities, and tribal communities as they respond to the coronavirus.” The lawmakers say rural communities are working to set up local emergency operation centers to help manage their response, but face challenges with limited staff capacity. The letter states, “some communities are already overwhelmed with the challenge.” Throughout rural America, the Department of the Interior and the Department of Agriculture employ thousands of federal civil servants who have the relevant experience to assist with emergency response. With this expertise available, the lawmakers say, ”it is crucial that the Federal Emergency Management Agency provide the authorities necessary and work with both agencies to deliver effective, coordinated assistance to rural communities.” ************************************************************************************* Restaurant Industry Seeks Federal Help The National Restaurant Association Wednesday asked President Donald Trump and Congress to take steps to provide the restaurant industry relief. The letter outlined the projected economic impacts of at least $225 billion during the next three months, with job losses of 5-7 million jobs, stemming from COVID-19. The letter outlined a dozen steps, including three separate categories of protection for industry restaurants and employees, including directed/targeted financial relief, loans/insurance options for impacted small businesses, and tax measures. Sean Kennedy, National Restaurant Association Executive Vice President of Public Affairs, says, “We are revising our business model to provide meals in different ways, takeout, delivery, safety-enhanced dine-in, but we are facing economic headwinds that will lead many restaurants to shut down operations, lay off workers, and end service in our communities.” Kennedy adds, the proposals in the letter, “ensure that restaurants have increased liquidity and access to necessary financing to help the industry and its employees recover.” ************************************************************************************* Grassley, Tester Call on USDA to Address Rule Change Two farm-state Senators want the Department of Agriculture to change a rule in the Packers and Stockyards Act. Senate Republican Chuck Grassley of Iowa and Senate Democrat Jon Tester of Montana recently sent a letter to Agriculture Secretary Sonny Perdue requesting USDA “clarify an ambiguous proposed rule regarding the undue and reasonable preferences provision of the Packers and Stockyards Act.” Grassley and Tester are urging USDA to ensure the new rule protects small livestock and poultry farmers from unreasonable practices of packers and poultry companies. In their letter, they outlined specific changes to address this proposed rule. The Senators say the current rule, “not only fails to address many of these abusive and unreasonable industry practices, but it actively establishes criteria insulating packers and poultry companies from scrutiny.” The rule also appears to provide legal protection for packers who are able to justify a practice based on the need to save costs and reduce prices, or if their practices are deemed “customary” in the industry because they align with those of their competitors. ************************************************************************************* NCBA Seeks BQA Awards Nominations The National Cattlemen’s Beef Association seeks nominations for National Beef Quality Assurance awards. The 2020 National BQA Awards recognize five winners in the areas of beef producer, dairy, marketing and education. The awards, “demonstrate the pride we all have in the work being done to enhance our industry and the products we provide to consumers,” according to Glen Dolezal of Cargill Protein. The National BQA Awards are selected by a committee of BQA-certified representatives from universities, state beef councils, sponsors and affiliated groups. Nominations may be submitted by organizations, groups or individuals on behalf of a U.S. beef producer, dairy producer, marketer or educator. Individuals and families may not nominate themselves, though the nominees are expected to be involved in the preparation of the application. Past nominees are encouraged to submit their application under the new nomination structure. Previous winners may not reapply. The Deadline for nominations is June 5, 2020. The National Cattlemen’s Beef Association manages the BQA program as a contractor to the Beef Checkoff Program. For more information, visit BQA.org.resident of Public Affairs, says, “We are revising our business model to provide meals in different ways, takeout, delivery, safety-enhanced dine-in, but we are facing economic headwinds that will lead many restaurants to shut down operations, lay off workers, and end service in our communities.” Kennedy adds, the proposals in the letter, “ensure that restaurants have increased liquidity and access to necessary financing to help the industry and its employees recover.”
| Rural Advocate News | Thursday March 19, 2020 |
Washington Insider: US-China Ties Tanking Bloomberg is reporting this week what it calls an additional threat amid what “could’ve been a moment for the U.S. and China to tackle a shared challenge.” Instead, the trend is accelerating a long-anticipated separation, the report says. China struck the latest blow this week with the “unprecedented” expulsion of more than a dozen American journalists covering Beijing for the New York Times, the Wall Street Journal and the Washington Post. The provocation comes as part of a tit-for-tat exchange in which the governments of both President Trump and China’s Xi Jinping seek to deflect blame for how they’ve handled the outbreak. In Beijing, as in Washington, the virus crisis has boosted hardliners over those who favor preserving relations with a key trading partner and military rival. One Chinese official said this difficult period that could last a long time and could become “a new Cold War.” Before moving to oust the American correspondents, a Chinese foreign ministry spokesman repeated a conspiracy theory that U.S. Army athletes introduced the disease and is blaming China for the outbreak ravaging the world economy. President Trump has characterized it repeatedly as a “Chinese virus” as he looks to rally his base against a foreign adversary ahead of the fall elections. While it’s unclear how far leaders will allow the dispute to escalate, demands for “reciprocity” on visas extend far beyond media access. At the height of trade tensions last year, Chinese students and visiting academics found their ability to work and study in the U.S. under threat. Chinese Foreign Ministry spokesman Geng Shuang said Wednesday that the country would be “compelled to take further countermeasures” if the U.S. continued down the “wrong path.” The feud is escalating just as the international community looks for leadership to contain a virus that has infected almost 200,000 people and may have already pushed the globe into recession. In the absence of a clear strategy, nations are going it alone and potentially undercutting each other’s efforts in the process. “The government of Xi Jinping has crossed a Rubicon that puts the U.S. and China on opposite banks in an increasingly antagonistic and irreconcilable state of play,” said Orville Schell, director of the Asia Society’s Center on U.S.-China Relations and a former dean of the Berkley Graduate School of Journalism. “This kind of self-destructive retaliatory action makes it increasingly unlikely the two nations will soon find ways to work together on other critical issues of common interest like the present pandemic, much less future trade and climate change.” As first, it looked like Trump and Xi might be able to build on good will from the “phase one” trade deal signed in January to work together against the outbreak, with the U.S. president praising his counterpart’s hard-line approach. But the two quickly began bickering over whether Xi’s government was being transparent enough and the U.S. resumed efforts to curb activities by China’s state media outlets in the U.S. In the meantime, China used the opportunity to weaken one of the few sources of critical coverage in its highly censored media landscape: foreign correspondents. Last month, it expelled three Wall Street Journal reporters. The administration hit back by ousting about 40% of staff at four Chinese media outlets. The disputes have reaffirmed concerns that the trade pact was merely a pause in hostilities rather than the foundation for a truce. The outbreak has bolstered nationalistic arguments on both sides of the Pacific for a more confrontational approach. President Trump and other U.S. officials upped the ante by adopting “Chinese virus,” which health experts warn risks stigmatizing an entire ethnic group. “China is only taking countermeasures,” said He Weiwen, a former official at the Chinese consulate in San Francisco. “Since the Covid-19 outbreak in China in January, Washington has been very unfriendly, even hostile to China. The journalists’ expulsion was only one of the latest moves, which of course deteriorated the trade environment.” Still, China’s mass expulsion of American journalists will have far-reaching consequences for the world’s ability to understand what’s going on there. While the newspapers will retain non-American staff and U.S.-based news wires remain, some of the reporters ousted produced groundbreaking stories about China’s mass detention of ethnic Uighur minority and other sensitive topics. The country’s leadership also receives daily summaries of international news outlets, including the New York Times, the Washington Post and the Wall Street Journal, according to two Chinese officials familiar with the arrangements. Richard McGregor, a former Financial Times bureau chief in Beijing who’s now a senior fellow at the Lowy Institute, said China’s leaders “must feel bulletproof” as their own outbreak appears to subside and the U.S. struggles with surging coronavirus cases. “China is now doing things that the hardliners have always wanted to do, but would either have been restrained by other parts of the system or wouldn’t have felt strong enough to get away with,” he said. “It is a moment to move on all fronts and we see them doing that.” So, we will see. Both sides seem to be pushing hardening positions just now based on beliefs in their potential political benefits. This appears to be a fight U.S. producers should watch closely as it has the potential to rebuild trade tensions that seemed to be declining, Washington Insider believes.
| Rural Advocate News | Thursday March 19, 2020 |
Administration Notifies Congress of Intent to Trade Negotiations With Kenya The Trump administration Tuesday provided formal notification to Congress that it would start trade talks with Kenya in 90 days. “Under President [Donald] Trump’s leadership, we look forward to negotiating and concluding a comprehensive, high-standard agreement with Kenya that can serve as a model for additional trade agreements across Africa,” U.S. Trade Representative Robert Lighthizer said in a statement. He said the administration will work with Congress on negotiating principles for the deal. USTR said it would publish the negotiating objectives for the talks at least 30 days before they begin.
| Rural Advocate News | Thursday March 19, 2020 |
Farm Bureau Expresses Concern About Halt In Processing H-2A Visas In Mexico A recent decision by the U.S. State Department to stop processing many H-2A visa applications in Mexico as U.S. embassies and consulates are being temporarily closed will make it much harder for American farmers to keep the country supplied with food if they do not have enough labor, according the American Farm Bureau Federation (AFBF) President Zippy Duvall. “American farmers will not have access to the skilled immigrant labor needed at this critical time of planting season and harvesting our spring crops,” Duvall said. “We are urging the administration to find a safe and practical way to admit farm laborers as emergency workers for visas, while still protecting the public health. Failing to do so will impact our ability to provide a healthy, affordable food supply.” The group is also monitoring the situation relative to U.S. food supplies, trying to ensure “U.S. agriculture and others in the food supply chain are able to continue feeding America, just like we do 365 days a year.” Even as some shortages are appearing in grocery stores, Duvall said the group wants to assure consumers “farmers and ranchers nationwide are continuing to produce the food we all rely on.”
| Rural Advocate News | Thursday March 19, 2020 |
Thursday Watch List Markets With coronavirus concerns rampant, it is not a typical week, but Thursday's reports are familiar. Weekly export sales, jobless claims and an updated U.S. Drought Monitor are set for 7:30 a.m. CDT. U.S. leading economic indicators are released at 9 a.m., followed by U.S. natural gas inventories at 9:30 a.m. CDT. Weather, trade news and coronavirus updates round out the rest of Thursday's interests. Weather Heavy rain and flash flooding are in store from the southeastern Plains through southeastern Midwest Thursday. We'll also see heavy snow and blizzard conditions in the western Plains, with high winds and wildfire threats in the southwestern Plains. Rain and snow will also feature in the Northern Plains and western Midwest. This combination will be stressful to livestock and safety, along with keeping soils wet and further delaying spring fieldwork.
| Rural Advocate News | Wednesday March 18, 2020 |
FTC Commissioner Unhappy with Proposed Meatpacker Plan FTC Commissioner Rohit (Row-HEET) Chopra says the USDA should try again on its proposed rules that would amend federal protections for independent farmers and ranchers in dealings with large meatpackers. Chopra wrote a letter to Ag Secretary Sonny Perdue saying the proposed changes “would make a bad situation even worse.” Politico says the USDA rules excluded an Obama administration proposal that would have helped livestock producers win lawsuits against larger agricultural conglomerates. Critics of the proposed rule say it would allow meatpacker discrimination to continue against industry suppliers. “Rather than spelling out for farmers which specific abusive practices are illegal, USDA did the opposite and made it clearer for incumbent packers and processors when it’s legally justifiable to use abusive practices,” says Chopra, who is one of two Democrats sitting on the FTC. The Federal Trade Commission polices business competition, including certain agricultural mergers. Chopra says the rules fail to address consolidation in the meat industry, which leaves farmers with fewer choices on where to sell their animals. Cattle, pork, and chicken slaughter are controlled in the U.S. by just four companies. ********************************************************************************************** China Re-Opening to U.S. DDGs Exporters China is working on opening up its market once again to U.S. exporters of DDGs. An Agri-Pulse report says China announced a list of companies that once again are eligible to export the product. U.S. companies don’t export DDGs to China at this point. However, negotiators fought hard to get China to agree in the Phase One Trade Agreement to re-certify U.S. producers to sell to their Chinese clients as trade will pick up once again between the two countries. China’s General Administration of Customs released a list of almost 90 companies that are eligible to export DDGs to the Asian country. At one time, China was the largest overseas market for U.S. DDGs. However, trade came to a stop after the Chinese government put steep anti-dumping tariffs and countervailing duties in place three years ago. Before that, the U.S. exported as much as $1.6 billion worth of DDGs to China as recently as 2015. One industry source tells Agri-Pulse that the fact that China agreed to re-certify U.S. DDG suppliers is a “key part” of getting trade going again. After all, the source says, “If you can’t get the permit, it won’t matter if there are no tariffs or up to 100 percent tariffs, which makes getting the certification so vital.” ********************************************************************************************** RFA, Biofuels Industry is Nervous about Turmoil in Energy Markets The Renewable Fuels Association is calling on the government to help the liquid fuel industries, which includes ethanol producers, during this time of uncertainty. Senate Finance Committee Chair Chuck Grassley says biofuel industry leaders were “very nervous” when he met with them recently. The Hagstrom Report says Grassley doesn’t think there will be much agreement in Congress on helping “Big Oil,” but did note that if there was any government assistance given out, it should include ethanol. Renewable Fuels Association President Geoff Cooper says the biofuels industry employs 350,000 Americans throughout the Heartland and notes that they’re carefully watching the government’s response to turmoil in the energy markets. “Our industry is being adversely affected not only by the economic constraints caused by the coronavirus, but also by the oil price war, ongoing trade disputes, and EPA’s small refinery waivers,” Cooper says. “Ethanol futures prices hit a record low in recent days as the virus is expected to negatively impact domestic and international fuel demand in the near term.” The administration’s response to the turbulence has centered around crude oil producers, but Cooper says biofuels are suffering as well. ********************************************************************************************** U.S. Pork Producers are Committed to their Responsibilities The National Pork Producers Council supports the Trump Administration guidelines for maintaining the continuity of critical U.S. infrastructure, which includes the food supply. U.S. pork producers supply the world’s safest, most nutritious, and lowest-cost pork in the world and remain committed to supplying Americans and other consumers around the world with the healthy protein they need to have. “We are committed to maintaining the core infrastructure of America’s food supply: farms,” says NPPC President Howard Roth, a Wisconsin pork farmer. “Pork producers and other farmers take seriously the special responsibility we hold for keeping people fed. Telecommuting is not an option for us; we are going to report to work as always while we take all the necessary precautions to protect our health and the health of those we work with.” The coronavirus guidelines NPPC will follow include listening to and following directions of local and state authorities; staying home if they feel sick; keeping the entire household at home if someone has tested positive for coronavirus; washing hands regularly and keeping a recommended distance from other people off the farm. ********************************************************************************************** USDA Partnership to Deliver Food to Closed Rural Schools Ag Secretary Sonny Perdue announced his agency has begun a collaboration to deliver food to a number of rural schools that are closed around the country. The USDA is partnering with the Baylor Collaborative on Hunger and Poverty, McLane Global, PepsiCo, and several other partners to deliver nearly 1,000,000 meals to students in rural schools shut down by COVID-19. “Feeding children who are affected by school closures is a top priority for USDA, which is working together with private sector partners to deliver boxes of food to children in rural America who are affected by school closures,” Perdue says. “The agency and local providers are utilizing a range of innovative feeding programs to ensure children are practicing social distancing while still receiving healthy and nutritious food.” He says that USDA has already taken action to ensure children are fed in the event of school closings and will continue to waive restrictions and expand flexibilities across its programs. Jon Banner is President of the PepsiCo Global Foundation, who says millions of schoolchildren don’t know where their next meal will come from if schools close down. “In the face of this unprecedented crisis, the private sector must help ensure these students have access to nutritious meals,” Banner says. ********************************************************************************************** Feeding Minds Press Announces New Children’s Book During a time when consumers are more curious than ever about where their food comes from, a new children’s book looks to answer some of those questions, particularly about dairy farming. “Tales of the Dairy Godmother: Chuck’s Ice Cream Wish,” is now available from Feeding Minds Press, the American Farm Bureau Foundation for Agriculture’s publishing venture. “Chuck’s Ice Cream Wish” is a delightful and educational story that we hope will engage young readers and spark curiosity about where their food comes from,” says Daniel Meloy, executive director of the Foundation. “That’s our goal with every resource the Foundation provides, and we’re excited to add this story to the growing library of books that tell the story of modern agriculture.” In this “dairy-tale,” a boy named Chuck wishes for all the ice cream he can eat, prompting his “Dairy Godmother” to show up to grant his wish with a dairy farm, where he gets a firsthand look at all the hard work and care that goes into producing his favorite treat. Just like youngsters, adult readers can also learn more about the real work of a dairy farm. The book is available directly from Feeding Minds Press, as well as Amazon and Barnes and Noble online.
| Rural Advocate News | Wednesday March 18, 2020 |
Washington Insider: Fed’s Broad Economic Arsenal The New York Times is reporting this week that the Federal Reserve’s surprise Sunday evening announcement of sweeping efforts included approaches used before. Still, looking back to 2008, the Times says the similarities between the Fed’s efforts then and now go deeper than the timing of news conferences. It thinks that the Fed has resurrected most of its aggressive, unconventional and extraordinary policies used to combat the earlier slowdown. But instead of doing so over about 16 months, from late 2007 through early 2009, it announced versions of them in a single weekend, before solid evidence of economic damage even materialized. Now, the Times thinks the Fed is taking a “whatever-it-takes” approach to the crisis, using multiple tools at once — and the ones that matter most may not turn out to be the ones that end up in the headlines. Cutting interest rates by 1.5 percentage points (including both Sunday’s action and an emergency rate cut 12 days earlier) isn’t going to be much help to millions of workers who may soon find themselves without a paycheck because of large-scale business shutdowns. Rate cuts are the Fed’s main tool for stabilizing the economy. Now that the central bank has brought rates to zero and pledged to keep them there until it is confident the economy has weathered the storm, it has mainly used up its main stabilization tool. To the degree more help for the economy is needed, it will have to fall to other actors in the government to provide it: public health authorities who might help contain the spread of the virus, and Congress, which can spend money to offset ill effects. But the Fed still has other ways to keep recent problems in financial markets from causing an even deeper downturn. The Fed on Sunday stepped into its role as the global lender of last resort — the entity that will do whatever it takes to keep dollars moving through the U.S. economy and around the world. One of the oldest roles for central banks and the reason the Fed was created more than a century ago in the first place, has been to ensure that credit can still flow freely even when panic sets in and lenders are fearful. In the last several days, financial markets have been freezing up in strange ways that suggest banks and other major players are hoarding dollars, NYT says. That is driving up the interest rates that major corporations, state and local governments and even individuals taking out a mortgage must pay for credit. That tightening of credit, if unchecked, can steer an economy into recession even if the effects of the virus are contained. And it is what Chair Jerome Powell has signaled his current determination to stop. To that end, on Sunday the Fed offered more generous terms at the “discount window,” where banks can borrow money at increasingly favorable rates by showing up and pledging collateral. It reopened so-called swap lines with leading global central banks, ensuring the flow of dollars can continue overseas despite a freeze-up in certain money markets. In recent years, the Fed’s quantitative easing programs of buying bonds have been discussed in the context of how they might help stabilize the economy. The new installment announced Sunday, $700 billion in planned purchases, actually has more in common with the first rounds of bond buying announced in late 2008 and early 2009, the Times thinks. In the 2008 slowdown, financial markets were going haywire and Fed officials hoped that by flooding the system with liquidity — the newly created dollars used to buy hundreds of billions of dollars in bonds — they could speed a return to normal functioning. That was exactly the rationale for the new actions Sunday, the Times says. Referring to the $700 billion in quantitative easing, Powell said in his news conference that “the primary purpose of these purchases is to restore smooth market functioning so that credit can continue to flow,” with the economic boost from the usual channels of monetary policy more a secondary benefit. The Fed stopped short, for now, of deploying some of the most unconventional tools in its lender-of-last-resort toolbox. During the 2008 crisis, a series of complex programs was enacted using emergency authority to funnel dollars into various corners of the credit markets and the Fed may well need to use some of them again if the damage worsens. Referring to programs created under that authority, Powell said, “That’s part of our playbook in any situation like this — so as I said, we’re prepared to use our authorities as is appropriate to support borrowing and lending in the economy.” Powell has a big advantage over the former chair Ben Bernanke from a dozen years ago: He and his colleagues have had all these years to study, assess and build upon the tools that the Bernanke Fed invented and deployed to combat that crisis. “We think we have plenty of policy space left, plenty of power left in our tools,” Powell said on Sunday. Over the coming weeks, the world will find out if he’s right. So, we will see. Many of the economic observers around are focusing on the lack of room for more cuts in interest rates. The fact that Powell and the Fed have their eyes on a broader range of options and tools likely will be seen as good news for producers and others who are deeply worried about what next steps in monetary and fiscal policies may be. Clearly, these policies should be watched very closely as they are deployed over the coming weeks, Washington Insider believes.
| Rural Advocate News | Wednesday March 18, 2020 |
US Expresses Disappointment In South African Hike In Poultry Import Duties The U.S. is “deeply disappointed” in South Africa’s decision to increase import tariffs on bone-in chicken to 62% from a prior mark of 37% and on frozen boneless chicken to 42% from a prior 12%, according to a report from Bloomberg. The domestic South African poultry industry called for the tariff hikes, indicating imports of the product from the U.S. and Brazil resulted in a loss of $393 million. The higher tariffs do not apply to shipments from the European Union and from members of the Southern African Development Community (Angola, Botswana, Comoros, Democratic Republic of Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, United Republic of Tanzania, Zambia and Zimbabwe).
| Rural Advocate News | Wednesday March 18, 2020 |
Grassley Calls for Tariff Relief The Trump administration should consider tariff relief as the country deals with trade and economic disruptions, Senate Finance Committee Chairman Chuck Grassley, R-Iowa, told reporters Monday. “I would just give you a short answer,” Grassley said, “consider tariff relief.” His comment came in response to a question on what trade actions the administration should take to deal with the impacts of the COVID-19 situation. Grassley has previously suggested that tariff relief relative to the tariffs put in place against China should be considered.
| Rural Advocate News | Tuesday March 17, 2020 |
Farm Economy Outlook Depends on Trade, Evolution of Disease Outbreaks The outlook for the United States farm economy depends on the implementation of new trade agreements and the evolution of animal and human disease outbreaks. The University of Missouri Food and Agricultural Policy Research Institute reports that while net farm income increases in 2020, under a baseline assumption of continued trade friction with China, other indicators of the health of the farm economy are not as positive. Projections show that with an assumed return to normal planting and growing weather in 2020, there will be an increase in projected area, yields and supplies and lower prices for corn and soybeans in the 2020/21 marketing year. With trend yields, 2020 corn production increases to 15 billion bushels, putting downward pressure on prices, which are projected to average $3.57 per bushel. With soybeans, an increase in production drops prices to $8.48 per bushel, before considering the possible impacts of the “Phase 1” trade agreement. Additionally, potential African swine fever impacts, along with the impact of COVID-19, could change the farm economy in 2020, as well. https://www.fapri.missouri.edu/carousel/changes-for-the-2020-baseline-outlook/ ************************************************************************************* COVID-19 Relief Bill Includes Additional Food Aid The House-passed bill to ease economic burdens caused by COVID-19 includes additional food benefits. The Senate will consider the bill early this week. Senate Leader Mitch McConnell called the bill “crucial legislation for the American people.” McConnell says, “It is clear that confronting this virus will take boldness, bipartisanship, and a comprehensive approach.” Politico reports the legislation includes an additional $1 billion in food benefits for students and workers. The Department of Agriculture has already granted more than 25 waivers to states to serve meals to low-income students during school closures. Further, the legislation includes $500 million for pregnant women and mothers under the WIC program, as well as $400 million in emergency aid for the Agriculture Department to purchase and distribute items to food banks. The bill also would suspend SNAP work requirements during the crisis. The legislation includes other economic measures, as well, intended to help America deal with the financial burden of the crisis. ************************************************************************************* Food Industry Stands with Trump to Keep Grocery Stores Open and Stocked Food industry representatives spoke with the President over the weekend, as the U.S. grocery supply chain seeks to keep up with crisis demands. President Donald Trump urged consumers to "chill," saying, "You don’t have to buy so much. Take it easy. Just relax,” referring to panic purchases of food items across the nation. Trump added food retailers are “committed to remaining open.” The Food Industry Association says the organization and its members offered to “stand ready with the President” to ensure “the viability of the supply chain and the availability of safe, affordable food and consumer products.” FMI says the grocery industry is working 24-hours-a-day to replenish and restock while ensuring the cleanliness of stores and facilities. FMI CEO Leslie Sarasin adds, “We want to ensure that all Americans know the government is working closely with all stakeholders across the and consumer products supply chain to ensure that stores can stay open and stocked with the products consumers need through this emergency. ************************************************************************************* Cattle Groups Respond to COVID-19 Market Disruption The United States Cattlemen's Association Monday called on the Department of Agriculture to take immediate steps to address the impact of COVID-19 on the U.S. cattle market. In a letter to USDA officials, the organization says producers' bottom lines are suffering because of the outbreak's impact on the cattle and beef industries. The Association says, “We must act expeditiously to return normalcy to the cattle marketplace.” USCA has created a special task force to address the market fallout as a result of the coronavirus. The announcement follows a statement from the National Cattlemen's Beef Association last week. NCBA CEO Collin Woodall says NCBA, “has been in daily communication with participants from every sector of the beef supply chain,” as the industry finds ways to “remove possible barriers to beef production.” Woodall says, “Although the full beef supply chain is being challenged by the outbreak, all segments of the industry are working closely together and must continue to do so.” ************************************************************************************* Lawmakers Introduce SALE Act A bipartisan bill introduced Monday would address livestock industry issues relating to dealer payment default. Republicans, Senator Chuck Grassley of Iowa and Jim Inhofe of Oklahoma, Monday, introduced the Securing All Livestock Equitably, or SALE Act. The lawmakers say the Act will make sure both livestock dealers and farmers are protected moving forward without negatively impacting their bottom line. Quick turnaround between the purchase and resale of cattle by a dealer often leaves the rancher who originally owned the cattle with little recourse if a dealer defaults on a purchase because the livestock has often already been resold. The legislation would establish dealer statutory trusts, mimicking existing packer statutory trusts, to ensure cattle sellers receive payment should a livestock dealer become insolvent. The 2018 Farm Bill contained a provision directing the Department of Agriculture to conduct a study to determine the feasibility of establishing a livestock dealer statutory trust. The results helped inform the senators’ ongoing effort to establish the creation of a Livestock Dealer Statutory Trust. ************************************************************************************* USDA Announces New Beginning Farmers and Ranchers Team The Department of Agriculture Monday announced a new team of USDA staff that will lead a department-wide effort focused on serving beginning farmers and ranchers. USDA Deputy Secretary Stephen Censky says the move will help “support the next generation of agricultural producers who we will soon rely upon to grow our nation’s food and fiber.” Sarah Campbell was selected as the national coordinator to lead USDA’s efforts. A beginning farmer herself, Campbell held previous positions with USDA and has a wealth of experience working on issues impacting beginning farmers and ranchers. She recently served as acting director of customer experience for the Farm Production and Conservation Business Center, where she led the piloting of innovative, customer-centric initiatives. In her new role, she will work closely with the state coordinators to develop goals and create plans to increase beginning farmer participation and access to programs while coordinating nationwide efforts on beginning farmers and ranchers.
| Rural Advocate News | Tuesday March 17, 2020 |
Washington Insider: Crisis Civics Lesson The COVID-19 pandemic is testing the various levels of the U.S. government in new ways, the Washington Post reported this week, including what governments “can and can’t do.” And, it added that the reality is that the president’s legal authorities in a pandemic are limited and that some of the most important actions probably won’t come from the president — they will come from governors and mayors. It further said that the pandemic will be, to a large extent, “a drama in 51 acts.” The states and the District of Columbia — not the federal government — decide when to shut schools, shops and other gathering places—and when to reopen them. It’s our governors and mayors — not the president — who will command medical personnel and law enforcement officials on the front lines of emergency responses. This diffusion of responsibility across the federal government and the 50 states is often called a flaw in the nation’s disaster response infrastructure but Post argues that divided responsibility also leaves us less vulnerable to nationwide failures—and that what we often think is our Achilles’ heel may be our saving grace. The president can close the borders and impose various restrictions on interstate travel; measures that will be of limited utility now that COVID-19 is present in 49 states and the District. The federal Centers for Disease Control and Prevention, the Food and Drug Administration and the National Institutes of Health will have important roles to play in the development and distribution of testing, treatment and vaccines. But beyond that, the president’s power in a pandemic is largely the power of the bully pulpit. At the federal level, we now have three declared emergencies related to COVID-19, the Post says. Health and Human Services Secretary Alex Azar declared a “public health emergency” on Jan. 31, and the President declared a “national emergency” and a “Stafford Act emergency” on Friday. A public health emergency allows HHS to unleash the Strategic National Stockpile, which at last count had 12 million N95 respirators and 30 million surgical masks. That’s a tiny fraction of the 1.7 billion to 7.3 billion respirators and 100 million to 400 million surgical masks CDC experts think we will probably need. A national emergency gives the president broad authority to take action that would ordinarily require congressional approval. For example, it potentially allows the president to redirect the 37,000-member Army Corps of Engineers toward temporary hospital construction efforts, although the Army Corps’ ranks are modest relative to the hundreds of thousands of civil engineers and construction workers employed by state and local governments. A Stafford Act emergency declaration meanwhile allows the president to use federal and state resources to supplement state and local emergency response efforts, tapping into money set aside in the federal Disaster Relief Fund. At the end of February, that fund had a balance of $42.6 billion — nothing to sneeze at, but less than 1 percent of the total federal budget, the Post says. The combination of a public health emergency and at least one of these other two emergencies allows the HHS secretary to waive certain requirements for providers under Medicare, Medicaid and the Children’s Health Insurance Program. It also allows the HHS secretary to make it easier for health-care professionals to work across state lines, for hospitals to transfer patients, for physicians to obtain Medicare reimbursement for telemedicine and for providers to comply with health privacy protections. Those aren’t inconsequential authorities, but they will have, at most, a marginal effect on the overall progress of covid-19. Contrast those authorities with the sweeping powers that governors and District Mayor Muriel Bowser wield upon declaring an emergency. Maryland law authorizes the governor to issue any “reasonable” order considered "necessary to protect life and property” during an emergency. For example, Maryland Gov. Larry Hogan, a Republican, who first proclaimed a state of emergency on March 5, on Monday stepped up those efforts to ban gatherings of more than 50 people in close proximity and close bars, restaurants, gyms and movie theaters across the state, the Washington Post reported. Ohio Gov. Mike DeWine, Illinois Governor J.B. Pritzker and Massachusetts Gov. Charlie Baker — whose state emergency statutes give them similarly broad powers — have used their authority not only to close schools and limit large gatherings but also to clear out bars and restaurants as well. Governors in some other states have taken less aggressive actions. For example, New York Gov. Andrew Cuomo and California Gov. Gavin Newsom have left school closure decisions to local officials, notwithstanding their clear authority under state law. Despite advice from public health experts to avoid high-contact settings, Oklahoma Gov. Kevin Stitt, who had been slow to implement statewide measures, the Post says — tweeted (and then deleted) a photograph of him and his family eating at a crowded restaurant Saturday night. He declared a state of emergency on Sunday evening. Closures of schools, theaters and houses of worship are expected to significantly reduce mortality but deciding how long to shutter these facilities, for example, will require difficult trade-offs between the public health consequences of the outbreak’s spread and the social and economic costs of widespread shutdowns. For now, social distancing and strict limits on activities are the prudent course, the Post thinks. But Americans won’t stay home forever and it will largely be up to governors and mayors to decide when to relax restrictions. The president was probably wrong when he claimed that COVID-19 “will not have a chance against us.” It could take a heavy toll. But with strong state and local leadership, we may have a fighting chance, the Post says. So, we will see. This outbreak is a new test of government and likely will be quite difficult to manage as it leaves a trail of economic and social damage. How well the civil organizations function will be extremely important and should be watched closely as the threat continues, Washington Insider believes.
| Rural Advocate News | Tuesday March 17, 2020 |
Lighthizer Notifies Congress of June 1 Target for USMCA U.S. Trade Representative Robert Lighthizer has notified the Senate Finance Committee and House Ways & Means Committee that the U.S.-Mexico-Canada Agreement (USMCA) will go into effect June 1. That comes after Canada’s parliament finally approved the deal Friday. That sets a tight timeline for regulatory and/or law changes that each country has to make relative to USMCA and then notify each other via an exchange of letters. Indications are actions to start assessing the needed changes have been ongoing since the U.S. ratification of the deal took place and that likely means the timeline could be achievable. Still it will represent a relatively quick turnaround.
| Rural Advocate News | Tuesday March 17, 2020 |
Benevento Pressed on Small Refiner Waivers in Confirmation Hearing The Senate Environment and Public Works Committee held a hearing on the nomination of Douglas Benevento to be the EPA Deputy Administrator last week, not surprisingly a session, which saw a lot of focus on the issue of small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS). The attention of questions focused on the 10th Circuit Court ruling, which declared three SREs granted for the 2016 compliance year were invalid. Benevento initially sought to address the issue by noting when asked that the court decision had come up about the time his nomination was in the process. “I have not been involved in … a lot of the discussions that -- or any of the discussions that have been happening internal at the agency since then,” he noted on the court ruling. “Moving forward what I can tell you is that I am happy to work with you and other members of the committee and Congress along with the administrator to ensure that we… whatever direction is ultimately determined… we move forward and it is equitable to everybody.” However, Sen. Joni Ernst, R-Iowa, focused intently on the SRE issue, labeling the court ruling as essentially saying the SREs were “illegal.” She asked Benevento whether he agreed if the court decision was the “law of the land.” When Benevento again tried to indicate the court case came about as nomination was starting to move forward, Ernst said, “can we agree that this is the law of the land right now?” Benevento replied that “it is, yes. It is a 10th Circuit decision and it is binding.” Asked about the pending 2019 compliance year exemptions by Ernst, Benevento explained that the decision before the administration is a “complex decision” and he said he would happily get back to Ernst in writing. She accepted Benevento’s answer, but cautioned him “guaranteed we will follow up on that.”
| Rural Advocate News | Tuesday March 17, 2020 |
Tuesday Watch List Markets Coronavirus concerns are apt to remain front and center and markets will have a chance to respond to the President's Friday afternoon press conference and announcement that tests will soon be widely available. USDA's weekly report of export inspections is set for 10 a.m. CDT, followed by a monthly soybean crush report from the National Oilseeds Processors Association later Monday morning. Weather Light to locally moderate rain and snow are in store for portions of all but the eastern Midwest Monday. Precipitation along with colder conditions will keep soils wet. Heavier precipitation, along with a threat of flooding in some areas, is indicated for later this week.
| Rural Advocate News | Monday March 16, 2020 |
U.S. Pork Export Levels to China Hit Lowest Mark Ever U.S. export sales of pork to China fell to their lowest level on record for the week ending March 5th. Reuters says that’s even as accessing Chinese ports improved in the world’s number one pork consumer. The USDA’s weekly report showed that Chinese buyer cancellations pushed down the total export sales to China to negative 45,222 tons of pork, the lowest since record-keeping began in 2013. It shot past the previous record of negative 17,600 tons for the week ending January 2nd of this year. Pork shipments to China totaled 139,719 tons, reflecting previous export sales. China’s top ports have begun to clear up the logjam of cargo on their docks as workers return to their jobs after coronavirus travel curbs kept them away. Global supply chains that have been jammed up by delays are starting to clear up. Net sales of soybeans to China, typically the top destination for the oilseed, were negative 90,281 tons, the smallest since the week ending on August 5th, 2019, when USDA reported that cancellations pushed soybean sales to China to negative 422,600 tons. Traders have been watching and waiting for exports to China to pick up since Beijing and Washington signed the Phase 1 trade deal. ********************************************************************************************** Ag Department Looking into Beef “Price-Fixing” Complaints As the USDA’s probe into price-fixing allegations in the beef industry continues, Ag Secretary Sonny Perdue would like some extra tools to deal with potential price manipulation across the industry. Perdue spoke during a Senate Appropriations Agriculture-FDA Subcommittee hearing last week. He told committee members that he’s concerned about the wide range in beef prices livestock producers get when compared to meatpackers. Responding to Senator John Tester, Perdue says, “The deltas we’re seeing between the prices you describe are historically high.” Tester had said beef producers are getting gouged by lower prices, while consumers aren’t seeing a lot of benefits. The Montana Democrat said at the hearing that the pie isn’t being cut fairly at all. “The feeders and the livestock producers are taking 15-20 percent cuts on their prices,” Tester said, “while the packers are seeing just a three percent drop.” Consolidation in agriculture is getting a lot more attention from lawmakers on both sides of the aisle, including many of the current and former Democratic candidates for president. USDA has also taken criticism in recent months for siding with large agribusinesses over smaller farmers. ********************************************************************************************** NFU says Proposed Rule Undermines Packers and Stockyards Act The National Farmers Union says a proposed rule from the USDA will undermine the Packers and Stockyards Act. Those were among the comments that new National Farmers Union President Rob Larew submitted to the USDA late last week. Larew points out that the Packers and Stockyards Act was put into place to “assure fair competition” in the livestock, meat, and poultry industries, as well as to “safeguard farmers and ranchers from unfair, deceptive, unjustly discriminatory and monopolistic practices.” The NFU says the rule in question, which outlines criteria for determining if a company has shown “undue or unreasonable preferences or advantages” for one farmer over another, does little to achieve either goal. Instead, the rule will provide few, if any protections to farmers while shielding corporations from legal challenges to abusive and anti-competitive actions. Larew is urging the USDA to develop clear and specific criteria that would offer meaningful protections to family farmers and ranchers. “There has long been a large power imbalance between family farmers and the livestock and poultry industries,” Larew says. “That’s why Congress put the Packers and Stockyards Act into place, but it has lacked the teeth it needs to provide the most basic protections to farmers and ranchers.” He says it’s supposed to protect farmers from corporations, not the other way around. ********************************************************************************************** Bill Would Give Producers Flexibility on Cover Crop Use Senators John Thune of South Dakota and Debbie Stabenow of Michigan introduced the Cover Crop Flexibility Act of 2020 last week. The legislation would permanently remove the prohibition on harvesting or grazing cover crops on prevented plant acres before November 1. Producers would be allowed to graze or harvest cover crops for hay or silage and eliminate an arbitrary date that allowed farmers with longer growing seasons more opportunities than those in northern states. Farmers would still have to plant cover crops on approved lists to prevent manipulation of that flexibility. It would also allow USDA to include cover crop seed and grazing-related costs when it sets the factor that’s used to calculate the prevented planting indemnity, as well as direct USDA to conduct a study to examine the extent that cover crops reduce risks of prevented planting and other crop insurance losses. Thune says, “This common-sense legislation would permanently remove the date restriction, which would help level the playing field and give our producers the certainty they need as they prepare for another potentially difficult year.” Stabenow adds, “When bad weather causes farmers to miss planting season as we did in Michigan last spring, it makes sense to help them get the best use out of their land.” ********************************************************************************************** EPA Working to Streamline Pesticide Evaluation Process The Environmental Protection Agency released a report called “Revised Method for National Level Listed Species Biological Evaluations of Conventional Pesticides.” It’s an important step toward creating a more workable solution to evaluate pesticides under the Endangered Species Act. “Protecting threatened and endangered species while ensuring farmers have access to tools to control pests are two objectives that can co-exist using available science,” says Chris Novak, CEO of CropLife America. “While we are still reviewing the EPA proposal, we appreciate the agency’s commitment to a process that’s efficient, protects species, and is based on the best available science.” He says the best way to balance those objectives is to rely upon real-world data and analysis that reflect where and how pesticides are actually used. Pesticide usage data is an important part of this revised method and represents a major step forward by the EPA to use the best scientific and commercial data available. “CLA continues to encourage a collaborative process among all the involved governmental agencies to find a long-term, transparent, and timely approach for harmonizing the pesticide registration process and ESA consultations,” Novak adds. ********************************************************************************************** NMPF Ready to Help Dairy Farmers Meet Coronavirus Challenges National Milk Producers Federation President and CEO Jim Mulhern says his organization is ready to help dairy farmers meet the challenges brought on by the coronavirus. Those challenges can include impacts on both the domestic and international markets. “From possible damages to domestic and world markets, to supply chain labor disruptions on the farm, at the processing plant, or in transporting milk, the potential ramifications for dairy are wide-ranging,” he says. “We will devote our resources to the best of our ability toward helping dairy farmers and cooperatives respond to whatever challenges they may face.” He says the good news is the U.S. dairy supply is safe, with the production of high-quality products continuing unimpeded. The FDA has confirmed that heat treatment kills other coronaviruses, so pasteurization is expected to also inactivate this virus. Also, there’s no evidence that this strain of coronavirus is present in domestic livestock such as cattle. “All producers will remain vigilant as what has now been labeled a pandemic continues down its path,” Mulhern says. “We will continue to answer questions and offer information that will help our members. Policy solutions may also be needed to help producers whose operations have been affected by the virus.”
| Rural Advocate News | Monday March 16, 2020 |
Washington Insider: Fed Ambushed by Events Most of the media are focused on the virus outbreak and its implications — but Bloomberg is reporting that events have “ambushed” the Fed — that for more than a year, America’s central bankers have been brainstorming about how to tackle the next downturn while assuming they had time to travel around the country figuring it out. As it turns out, they had “no time at all.” Fed Chair Jerome Powell and his colleagues began 2020 betting they could keep interest rates steady in a strengthening economy. They’re now in a “race to save an 11-year expansion from the coronavirus, which has wreaked havoc across financial markets and threatens to tip the U.S. into recession too — if it hasn’t done so already.” In less than two weeks, the Fed has been forced into two emergency rate cuts, accelerated purchases of Treasury bonds, and pledged to pump trillions into funding markets — a far cry from the “Fed Listens” tour that policy makers announced in late 2018 to glean ideas from business leaders and the general public about how to set monetary policy. At that point, the central bank had just spent three years ratcheting its benchmark rate back up toward historically normal levels, after hitting zero during the last financial crisis in 2008. But it didn’t make it very far the Fed over the weekend has undertaken a host of actions to head off COVID-19 impacts of actions as the economy faces new challenges. This clearly invites the question: What next? As recently as October, according to minutes of their deliberations, Fed officials were sounding broadly content with the crisis toolkit that they deployed in 2008 and after, although open to tweaks. Now they may have to resort to all of those measures and more — and roll them out fast. Those include commitments to keeping short-term rates pinned at zero and the bond-buying programs known as quantitative easing. Bloomberg also thinks that this time, the Fed could go further and follow the lead of the Bank of Japan, whose policy of yield-curve control aims to hold longer-term rates down too. And even that may fall short. “The Fed doesn’t really have the scope to do what it needs to do,” said an ex official. “The takeaway from that, I guess, is monetary policy can’t really do much at this stage.” That’s one reason why proposals more radical than anything on the Fed’s own radar have been bandied about with growing urgency by monetary policy wonks. Negative rates, already attempted in Europe and Japan, have their advocates — including President Trump — though Fed officials dislike the idea. There’s also talk of authorizing fed purchases of a wider range of securities than the government-backed ones it acquired in past rounds of QE. The longer-term problem that all these proposals attempt to solve — limited central-bank traction on the economy during downturns — was reflected in the short-run gyrations of markets these past couple of weeks. The Fed was taking action, Bloomberg said, but it wasn’t able to halt a gathering rout. When it looked like no immediate help was on the way, stocks and Treasury yields plunged. When it looked like it might be — for example, during the president’s declaration of a national emergency on Friday afternoon — they surged. In Europe too, fiscal authorities were getting a rude wake-up call that spurred them into action. Even so, on Saturday the President continued to blame the Fed for dragging its feet, demanding more rate cuts and saying he could demote Powell if he wanted to. Nothing remotely like this was in the forecast 16 months ago when Fed officials launched their rethink. They expected rates to reach around 3% by 2020, and were mostly preoccupied with why they kept falling short of the 2% inflation target. In the coronavirus world, the economy is set to cool rapidly regardless of where interest rates are as spending in some areas falls and workers get laid off. This time around the damage probably won’t be as severe, according to David Wilcox, a former director of research and statistics at the Fed’s Board of Governors, who is now at the Peterson Institute for International Economics. He foresees a “sharp downdraft in economic activity,” but expects a moment when health authorities sound the all-clear. “That’s going to provide a big psychological lift, and I think there will be a big economic lift as well.” The latter idea fits with the reflections of some policy makers themselves including Fed Governor Lael Brainard who criticized the tightening that began in 2015 and argued that it would’ve been better to “delay liftoff.” The review was designed to answer that kind of strategic question. But with yields on even 30-year government bonds far below the 2% inflation target, investors are signaling that the Fed won’t have to worry about the timing of a rate-hiking cycle for a long time. Instead, firefighting tactics are again the order of the day. Looking back on the period since 2008, Nathan Sheets — a former Fed and Treasury official who’s now chief economist at PGIM Fixed Income in Newark, New Jersey — says, “The European Central Bank has been stuck at zero. The Bank of Japan has been stuck at zero for even longer,” he said. So, we will see. The coming months are expected to see a wide range of efforts to avoid economic downturns and global economic slowdowns — proposals that producers should watch closely as these efforts are debated and tried out, Washington Insider believes.
| Rural Advocate News | Monday March 16, 2020 |
China Proposes Standards on Hormone Residues For US Beef China has drawn up food safety standards on residue limits of growth hormones in beef, a move seen as a further step towards opening up its market to American imports of U.S. beef. China has previously had zero tolerance for any residues of growth hormone. China in the phase one agreement with the U.S. signed January 15 agreed to set residue limits for three hormones used in beef, besides other changes to make more U.S. beef eligible for export to China. China last month conditionally lifted a ban on beef and beef products from U.S. animals more than 30 months old, another condition agreed to under the phase one trade deal. This is another indication that China is trying to live up to the deal.
| Rural Advocate News | Monday March 16, 2020 |
USDA’s Perdue Again Says Farmers Should Not Count On Trade Aid Payments USDA Secretary Sonny Perdue told Senate Appropriations Ag Subcommittee members that he does not think farmers should count on more Market Facilitation Program (MFP) payments. But, he said, “if trade does not materialize, we are prepared to look at that again.” The likely need for a third round of trade aid was emphasized by Republican lawmakers. “Given the coronavirus, given the impact it has on the trade agreements, I am going to ask you what your thoughts are in terms of it another round of MFP, which I feel may be needed,” said panel Chairman John Hoeven, R-N.D. He also asked if MFP 3 were to be offered, “Do you have the resources… to do that based on where you are in terms of the CCC (Commodity Credit Corporation) program?” Perdue responded, “We would have to really know the timing there and really look at our cash flow within CCC,” noting that Congress replenished CCC last year to ensure MFP 2 payments were able to be disbursed on time. “What we know right now is the MFP program was a trade-disruption program not a price support mechanism,” Perdue said, echoing comments he has made before. He emphasized President Donald Trump only suggested further aid will come if trade conditions warrant it.
| Rural Advocate News | Monday March 16, 2020 |
Monday Watch List Markets Coronavirus concerns continue to dominate this week's trading and it seems appropriate to end the week on Friday the 13th. Friday's only official report is an index of consumer sentiment at 9 a.m. CDT. South American weather, trade news, and any virus-related topics will garner the bulk of traders' attention. Weather Friday features moderate to locally heavy snow and mixed precipitation in the southwestern Plains, with a swath of light rain eastward to the Delta. Other crop areas will be dry. Rain and snow coverage will spread throughout the central and southeastern U.S. through the weekend.
| Rural Advocate News | Friday March 13, 2020 |
ARC, PLC Deadline Monday Farmers who have not yet completed their 2019 crop year elections for enrollment in the Agriculture Risk Coverage and Price Loss Coverage programs must schedule an appointment to do so with their local USDA Farm Service Agency by Monday, March 16. FSA Administrator Richard Fordyce says." If you've not completed your elections or enrollment, the clock is ticking, and your program eligibility is at stake, so please call FSA today and request an appointment." To date, more than 1.4 million contracts have been signed for the 2019 crop year. This represents 89 percent of expected enrollment. Producers who do not contact FSA for an appointment by close of business local time on Monday, March 16 will not be enrolled in ARC or PLC for the 2019 crop year and will be ineligible to receive payment should one trigger for an eligible crop. ARC and PLC provide income support to farmers from substantial drops in crop prices or revenues and are vital economic safety nets for most American farms. ************************************************************************************* EU Trade Official Cancels Trip to U.S., Canada European Union Trade Commissioner Phil Hogan canceled plans to travel to the U.S. and Canada next week due to the coronavirus. An EU spokesperson told Politico, "The trip has been canceled and will be rescheduled as soon as possible," adding, "If necessary, contacts will continue through other means." Hogan was scheduled to visit the United States while the U.S. and EU are working on a mini trade deal, one that U.S. agriculture interests hope will successfully include agriculture provisions. However, his visit next week was for a U.S. Chamber of Commerce event. Hogan also canceled his planned trip next week to Canada to discuss World Trade Organization reforms. Both events are postponed or canceled. Earlier this week, President Donald Trump announced U.S./EU travel restrictions for 30 days, requiring foreign nationals to test for COVID-19 before flying. Last week, Hogan reported the U.S. and the EU were "taking slow, small steps" toward a mini trade deal. ************************************************************************************* CME Closes Pit Trading Due to Coronavirus The CME Group physical trading floor will close due to the coronavirus. Much of today’s trade is done electronically. Trade on the floor will end at the close of Friday’s trading session, and all trading will take place on the GME Globex. CME Group says the action is “a precaution to reduce large gatherings that can contribute to the spread of coronavirus in line with the advice of medical professionals.” No coronavirus cases have been reported on the trading floor or in the Chicago Board of Trade building. The reopening of the trading floor will be evaluated as more medical guidance on the coronavirus becomes available. The company's headquarters will remain open. Meanwhile, following many other events, the Commodity Futures Trading Commission postponed this year’s Agricultural Commodity Futures Conference scheduled for April 1-2 in Overland Park, Kansas. And, the CFTC will relocate its open meeting scheduled for March 31 at the Federal Reserve Bank of Kansas City to CFTC headquarters in Washington, D.C. ************************************************************************************* Trump Administration Seeks Endangered Species Act Changes The Environmental Protection Agency Thursday announced a new method for conducting biological evaluations under the Endangered Species Act. The change seeks to assure that pesticide registration review actions under the Federal Insecticide, Fungicide, and Rodenticide Act do not jeopardize endangered species. EPA says the updated method ensures that, when available, the agency will use high-quality historical data that reflects where and how certain pesticides are used. EPA Administrator Andrew Wheeler says the new methodology will, “better protect and promote the recovery of endangered species while ensuring pesticide registration review decisions are conducted in a timely, transparent manner and are based on the best available science.” Agriculture Secretary Sonny Perdue says the Trump administration is “cutting the red tape to unleash the full potential of American agriculture.” The final Revised Method incorporates pesticide usage data into the agency’s biological evaluation process for the first time and was informed by input from a wide range of stakeholders, including states, tribes, environmental NGOs, and agricultural stakeholders. ************************************************************************************* Gains in Large Tractor Sales Highlight of AEM February Sales Data February 2020 saw mixed results in overall U.S. sales of tractors and self-propelled combines. The bright spot was four-wheel-drive and 100-plus horsepower tractors, which showed healthy gains year over year. However, overall tractor and combine sales fell for February, according to the latest data from the Association of Equipment Manufacturers. U.S. total farm tractor sales decreased 7.5 percent in February compared to last year while U.S. February self-propelled combine sales fell 21.1 percent. However, within those numbers, dealers saw a 6.2 percent gain in tractors above 100 horsepower, and a 7.3 percent rise in four-wheel-drive units. Total U.S. sales of two-wheel-drive tractors fell in February a total of 7.5 percent year over year. For Canada, four-wheel-drive tractor sales gained 43.5 percent and self-propelled combine sales fell 46.3 percent. Curt Blades of the Association of Equipment Manufacturers, says uncertainty in global markets is being reflected in agricultural markets, which is reflected in the capital expenditure decisions, like major equipment purchases by farmers. ************************************************************************************* Fake Chicken Imitator Receives Investment A $200 million investment allows the LIVEKINDLY co. to expand its plant-based foods operations. The company claims its “leading a movement to build a sustainable future” with the investment from founders, entrepreneurs and global leaders. Brands under its portfolio offer consumers non-GMO, plant-based chicken alternatives and include the Fry Family Food Co. and LikeMeat, as well as the plant-based digital media platform, LIVEKINDLY Media-from which the new company's name derives and means “embracing a sustainable and compassionate lifestyle.” With these investments and others, the company is the only company in the plant-based food sector to own and operate the entire value chain of production. The plant-based protein market could reach nine percent of the estimated $2.7 trillion global meat market by 2040. The founders' round of funding will be used for further acquisitions, scaling the current plant-based food portfolio of brands and investments to rapidly increase the plant-based food industry capacity.
| Rural Advocate News | Friday March 13, 2020 |
Washington Insider: New Policies and Proposed Supports Well, most of the over-arching issues being reported late this week concern the coronavirus and the still-evolving U.S. and global policies to counter the outbreak. In what POLITICO called an unusually somber Oval Office address, President Trump announced a number of anti-virus policies including a 30-day ban on foreign visitors from most of Europe. The report said that the new policies “ratcheted up the his administration’s response after battling criticism for previously downplaying the crisis.” In a rare address from the Oval Office, President Trump said the European Union had “failed to take the same precautions” as the U.S. had implemented, prompting his decision to temporarily suspend travel between the two continents. The restrictions will not apply to the United Kingdom, where the number of confirmed cases topped 400 on Wednesday. “We made a life-saving move with early action on China. Now we must take the same action with Europe,” the president said in an 11-minute televised address, referencing his February move to restrict travel from China, where the virus began. “Smart action today will prevent the spread of the virus tomorrow.” The address marked a dramatic shift in messaging for the President who has spent weeks vowing that the coronavirus would die down quickly, pledging that a vaccine was coming soon and insisting that it was similar to the seasonal flu – all assertions his own health officials have contradicted repeatedly. But Wednesday night was the second time President Trump had made such a prime time address – his previous Oval Office speech came during the 2019 government shutdown when he used the occasion to attempt to sell the public on his controversial effort to build a southern border wall. This time, he blamed travelers from Europe for bringing coronavirus to the U.S. “A number of new clusters in the United States were seeded by travelers from Europe," he said. The speech also generated some confusion, POLITICO said. After the President finished his remarks, the Department of Homeland Security clarified that the new order would not bar all travelers from Europe, just foreign nationals traveling from Europe to the U.S. The order also doesn't prohibit the travel of legal permanent residents and the immediate family members of U.S. citizens. The guidance does apply, however, to people transporting cargo from Europe the White House told POLITICO, although goods and cargo will be permitted to enter the U.S., another statement that needed clarification after Trump was finished. The President also addressed some expected economic measures during his speech, saying he would “soon be taking an emergency action” to provide a financial cushion to business owners and individuals hit by the coronavirus. He said the Small Business Administration would provide emergency capital to impacted companies and vowed to defer tax payments for certain entities that have been hit by the virus. The president then asked Congress to include a paid sick-leave mandate and payroll tax cut in a stimulus package that is currently being ironed out on Capitol Hill. While lawmakers have coalesced around the sick-leave proposal, the payroll tax cut has been a harder sell. As the week wound down on Thursday, the political spotlight turned to numerous economic proposals including one from Speaker Nancy Pelosi, D., Calif., who has been pressing ahead with plans for an early vote on emergency legislation including expanded paid sick leave and unemployment benefits as well as free coronavirus testing. The White House doesn’t back much of that plan as currently drafted, though it supports many of the overall policies, an aide told Bloomberg on Thursday. Timing for any of these proposals, or a combination of them, is also an issue. Congress moves on a schedule that’s completely different from fast-paced markets and it’s about to go into a week-long recess. However, Senate Majority Leader Mitch McConnell, R., Ky., announced the Senate would still be in town next week to work on the aid package. Still, Bloomberg noted that there may be more consensus on the need for budget action now than there was in the earlier downturn in 2008. The idea of helping out struggling households and businesses in a health crisis – unlike the support for Wall Street banks that was part of the earlier Bush proposal – commands broad support. The president is also trying to browbeat the Fed into cutting interest rates once again – and there may be other steps, like tax-deadline moves that the administration can take on its own, although the most powerful tools will require a congressional vote. However, “it’s obvious the Fed’s ammunition is low-powered,” one observer told Bloomberg. “Fiscal policy needs to carry the football.” So, we will see. Clearly, the virus outbreak and the market collapse have drawn almost everyone’s attention. How and when those threats will prove adequate to support strong economic measures remains to be seen and should be watched closely by producers as the debate continues, Washington Insider believes.
| Rural Advocate News | Friday March 13, 2020 |
Conflicting Reports on Whether Tariff Cuts at Play for China Senate Finance Chairman Chuck Grassley, R-Iowa, said China may deserve some flexibility regarding pledges of U.S. commodity purchases under phase one of the trade agreement on difficulties dealing with the coronavirus. “I think we can say that they are taking the proper steps to carry out phase one, but the subtraction from that would be their economy is in trouble,” Grassley told reporters Wednesday. “And the extent to which their economy is in trouble, I think they would have some flexibility.” Interestingly, Grassley said there are talks in the White House on potentially lifting some remaining tariffs on China to ease the coronavirus pressure. “I think in order for it to do any good it would have to be reciprocal,” he said. However, White House trade adviser Peter Navarro Wednesday shot down any suggestion of tariffs being lifted. Calls for the U.S. to either provide tariff exemptions or to suspend tariffs imposed on Chinese goods entering the U.S. are “absurd,” Navarro told Politico. Such calls for tariff reductions are “simply a fake news gambit by the usual Wall Street suspects who never met an American job they did not want to offshore for the sake of a buck,” he said.
| Rural Advocate News | Friday March 13, 2020 |
USTR official No Request Yet From China on Phase One Buys Chief U.S. ag trade negotiator Gregg Doud said that currently there is no way to know if the coronavirus will impact China’s ability to fulfill its purchase commitments under phase one of the agreement between the U.S. and China, and he said China has not requested any consultations to delay those purchases. “That is the obvious question — and the obvious answer is there is no way to know what the impact of this is, at this time,” Doud told Brownfield Network on the sidelines of the Nebraska Governor’s Ag Conference relative to the coronavirus impact. But, as USDA Secretary Sonny Perdue and others have noted, Doud said implementation of the Phase One agreement is on schedule. “At USDA and USTR, we are talking to our Chinese counterparts every day, by phone or by email — and so far, everything if going very well,” Doud told Brownfield. “Obviously, this is not the best of circumstances but, so far, everybody is doing everything they can to implement the agreement.” Reuters reported that China has met another one of their commitments under the phase-one agreement – setting maximum residue levels (MRLs) for three approved beef hormones used in U.S. cattle production. Doud said China has not asked for a reprieve from their purchase commitments. “No,” he stated. “That is the simple answer. They have not.”
| Rural Advocate News | Friday March 13, 2020 |
Friday Watch List Markets Coronavirus concerns continue to dominate this week's trading and it seems appropriate to end the week on Friday the 13th. Friday's only official report is an index of consumer sentiment at 9 a.m. CDT. South American weather, trade news, and any virus-related topics will garner the bulk of traders' attention. Weather Friday features moderate to locally heavy snow and mixed precipitation in the southwestern Plains, with a swath of light rain eastward to the Delta. Other crop areas will be dry. Rain and snow coverage will spread throughout the central and southeastern U.S. through the weekend.
| Rural Advocate News | Thursday March 12, 2020 |
Coronavirus Closes Houston Livestock Show and Rodeo One of the largest agricultural-based events of the year closed Wednesday for public safety reasons, amid the spread of the new coronavirus. In a statement, organizers of the Houston Livestock Show and Rodeo said, “In the interest of public health, the City of Houston and the Houston Health Department have ordered the Houston Livestock Show and Rodeo to close.” The statement continues, saying, “Having to close early is extremely difficult as guests, volunteers, exhibitors, rodeo athletes and entertainers look forward to the 20 days of the Rodeo each year. In 2019, there were more than 2.5 million visitors to the event from 75 countries. The World Health Organization declared a pandemic Wednesday, sparking a chain reaction of events getting postponed or canceled because of the outbreak of COVID-19, the disease caused by the coronavirus. The American Farm Bureau Federation also announced the cancellation of its Young Farmer And Ranchers conference set for this weekend in Louisville, Kentucky. ************************************************************************************* NPPC Seeks Labor Solutions for Potential COVID-19 Impact The fallout from an ongoing labor shortage facing the U.S. pork industry and other agriculture sectors could significantly worsen due to the impact of COVID-19, according to the National Pork Producers Council. A letter sent to government officials this week outlines NPPC's labor specific concerns regarding the outbreak. There is no evidence that pigs can contract the virus. However, NPPC called for expedited solutions addressing the need for more workers on hog farms and in pork plants. It also called on federal, state and local governments to work together to develop a response to COVID-19 that protects public health and, whenever possible, supports animal care and minimizes disruptions to the U.S. pork supply chain. NPPC also called on the administration to develop support plans for hog farmers if labor-related bottlenecks in the supply chain prevent hogs from being marketed. Even without the additional challenge presented by COVID-19, NPPC says the labor shortage threatens to increase production costs and food prices for consumers. ************************************************************************************* Dairy Farmers Descend on Capitol Hill Dairy farmers from the National Milk Producers Federation are in Washington, D.C., this week visiting with lawmakers. The visits are part of a fly-in calling for an agricultural labor bill that could be reconciled with a plan the House approved last year, providing the stable, secure labor force U.S. dairy producers need. U.S. dairy producers face labor shortages that are more intense than those felt in agriculture as a whole because they cannot use the H-2A farmworker program, which only provides for seasonal labor rather than the year-round workers dairy needs. With domestic workers in short supply and foreign labor difficult to employ under current policies, dairy farmers are urging lawmakers to find solutions. of NMPF President and CEO Jim Mulhern says, “The situation is dire,” adding “uncertainty on the farm harms individuals and rural communities that rely on those farms to generate jobs.” The House of Representatives in December passed bipartisan legislation allowing for year-round visas in dairy as part of the first ag-labor bill to pass that chamber since 1986. ************************************************************************************* Farm Groups Disappointed Over Potential SRE Appeal A group of farm organizations expresses disappointment over the Trump Administration contemplating an appeal to a court ruling striking down three small refinery waivers. The petitioners in the case—the Renewable Fuels Association, National Corn Growers Association, American Coalition for Ethanol, and National Farmers Union, say, "the Administration has opted to kick the can on deciding whether to appeal the court decision." Last week, the U.S. Court of Appeals for the Tenth Circuit approved requests by the Department of Justice for an extension of the deadline to file motions asking for a rehearing. The new deadline for requesting a rehearing is March 24. The Court found the Environmental Protection Agency vastly exceeded its authority in granting compliance exemptions to three refineries from 2016 and 2018 Renewable Fuel Standard obligations. The farm groups say the delay "just prolongs uncertainty in the marketplace and stokes more angst and frustration in farm country." They say rural America would view an appeal by the Administration as a “senseless poke in the eye.” ************************************************************************************* Farm Debt Just Short of Record Levels A new analysis shows total farm debt is near record levels and farm real estate debt is at an all-time high. Agricultural Economic Insights found that today, total debt stands at $425 billion, just short of the 1981 peak of $440 billion. However, the annual increase from 2000 to 2020 has been achieved through the relatively consistent small increases in debt, as opposed to a rapid run-up. Meanwhile, at $264 billion, real estate debt is well beyond any levels seen in history. Since 2000, real estate debt has grown at an average annual rate of four percent per year. This has caused real estate debt to more than double over that time period. The analysis says at present, it would seem that the current levels are sustainable, but with little room for further growth, adding, that while it is quite likely that the sector will navigate through this territory with few problems, it also removes some of the room for error. ************************************************************************************* Pet Food Manufacturers Feed America’s Pets and Agricultural Economy New research finds that U.S. pet food manufacturers provide balanced, safe meals for America’s dogs and cats, and also stimulate the overall agricultural economy. The Institute for Feed Education and Research, North American Renderers Association, and Pet Food Institute released a new the jointly funded report Wednesday. The research found that through the purchase of ingredients, labor and services from related industries, the $30 billion pet food industry gives back to the agricultural economy by using 8.65 million tons of animal- and plant-based ingredients for dog and cat food to provide the nutrition that pets need, at a value of $6.9 billion. The data shows that pet food manufacturers use an estimated 3.8 million tons of animal-based products, such as rendered products or meat and poultry. Pet food manufacturers also use 4 million tons of farm and farm-product processor ingredients, such as grains, soy products and fruits and vegetables, and approximately 200,000 tons of seafood products. Many of these ingredients are left over from making food for people.
| Rural Advocate News | Thursday March 12, 2020 |
Washington Insider: Mixed Reaction to Administration Tax Proposals The Hill reported this week that there is still “much uncertainty” about the path forward after the administration pitched ideas to boost the economy amid the coronavirus outbreak. Democrats have openly criticized the initial proposals to cut or eliminate payroll taxes, arguing “the president is looking for an excuse to make another tax cut.” Even some Republicans have been hesitant to embrace it the proposal, The Hill said. In a meeting with Senate Republicans on Tuesday, the President called for payroll taxes to be waived through the election. He also discussed relief for the travel and hospitality industries which have been hit particularly hard by the coronavirus outbreak. Now, House Democrats say they are planning their own response, which they are expected to release “soon.” “I think people on the Hill are sort of thinking about what they have in their toolbox” in terms of temporary tax relief, said Jon Traub, a former Republican staff director on the House Ways and Means Committee, now a managing principal at Deloitte Tax LLP. In addition, critics argued that payroll tax cuts won’t stop the spread of the virus after the President’s meeting with lawmakers. Treasury Secretary Steven Mnuchin, who was also in the meeting with lawmakers, said he was optimistic there is a bipartisan path forward. “We’re having discussions about various different policies,” he said. Sen. Josh Hawley, R-Mo., said Mnuchin told senators there is still a debate about whether the proposed payroll tax cut would be permanent or temporary. The administration is scoring the cost of both options, Mnuchin told the group. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and Sen. Tim Scott, R-S.C., weren’t ready to commit yesterday to a payroll tax action. Still, the President said he thought Republican senators were “mostly all there” on the idea. A one-year cut of 2 percentage points in the payroll tax, as was done in 2011, could generate modest economic growth, according to the Penn Wharton Budget Model. In addition, Mnuchin said there are some steps Treasury could take on its own. For example, declaring the virus a federal disaster would allow the department to extend tax filing deadlines and payment due dates and waive late-filing penalties for affected individuals, The Hill said. Secretary Mnuchin and President Trump also discussed ways to help small businesses and provide paid sick leave for individuals, Sen. James Lankford, R-Okla., said. Ways and Means Democrats asked for an evaluation of whether the April 15 filing deadline should be extended. The Hill reported that President Trump decided to abandon his cautious, business-as-usual approach to the coronavirus he had hoped would calm Wall Street jitters after watching stocks plummet while aboard Air Force One on Monday, The Hill said. The Hill also noted that some elements of the 2017 tax law could pose additional trouble for companies, on top of shaky markets and a drop in demand for services like airline travel. Those changes include a cap on debt interest write-offs and the elimination of companies’ ability to carry back losses to previous years. “All of those provisions are going to be harsh on companies when things turn down,” Bryan Collins, a former Treasury official, now a managing director at Andersen Tax said. There also were discussions of an infrastructure package this week, including possible means of financing. In that context, The Hill said Senate Majority Whip John Cornyn, R-Texas, “threw cold water on any across-the-board gas tax increase and pointed out that “a better option—and one preferred by Republicans” — could be a vehicle-miles-traveled tax, and Democrats should consider it, he said. “Well, if they want an infrastructure bill they’re going to have to get serious about it and that’s one reason why convincing them that a gas tax is not going to pass this Congress is important, because then it will force them to get serious about what might work,” he said. The Hill also noted that former Vice President Joe Biden’s current tax plan would raise taxes on the richest Americans by about $109 billion over a decade, The Hill said. In contrast, the plan Sen. Bernie Sanders, I-Vt., proposed would raise taxes on the wealthy by nearly $3.2 trillion in that same period, according to a recent estimates from the Tax Foundation, The Hill said. Biden has called for repealing the tax law cuts benefiting top earners. Sanders would raise the top tax rate to 52% for those making $10 million or more. So, we will see. Certainly, the continued market volatility along with the spreading coronavirus outbreak will make pressure for federal relief increasingly urgent — proposals producers should watch closely as they are debated, Washington Insider believes.
| Rural Advocate News | Thursday March 12, 2020 |
House Ag Committee Cites Usual Laundry List of Reasons Why There Should Be No Budget Cuts For Ag The House Ag Committee approved its budget estimates and views letter to the House Budget Committee, not surprisingly calling for no cuts to U.S. farm and nutrition programs. Citing the financial stress in U.S. agriculture and the bipartisan 2018 Farm Bill, the panel said these immediate stresses argue for maintaining funding. “Given the strong support for the work mentioned above and the economic realities facing many Americans, the Committee believes that the farm, rural, and nutrition priorities should be maintained and that no budget reductions are warranted in any part of our jurisdiction,” the letter said. “The Committee on Agriculture is planning continued thorough oversight and monitoring of the implementation of the 2018 Farm Bill, as well as the continuing authorities of USDA and the Commodity Futures Trading Commission,” the panel said. “Our goal is to ensure that the investments made in these programs and authorities yield results consistent with congressional intent. The Agriculture Committee will also continue to gather new insight into how to improve programs and authorities, including ways to continue to invest taxpayer money wisely.”
| Rural Advocate News | Thursday March 12, 2020 |
House Members Call On USTR to Address Antimicrobial Washes In US-UK Trade Deal The exit of the United Kingdom from the European Union (EU) represents an opportunity to address an “unscientific ban” on imports of U.S. poultry due to the use of antimicrobial washes, according to some 47 U.S. House lawmakers that are members of the Congressional Chicken Caucus. The situation means the U.S. is in a position “to negotiate an agreement with the UK that resolves this unscientific ban once and for all.” The lawmakers pointed out in the letter to U.S. Trade Representative Robert Lighthizer that “Antimicrobial spray washes are used in the production process to improve food safety. All rinses, including chlorine, must be approved by the U.S. Department of Agriculture (USDA) and their use is limited to specific amounts.” Plus, they noted that only 10% of U.S. chicken processing plants use chlorine throughout their production. “Scientific research, including that of the European Food Safety Authority, confirms using chlorine-washed poultry does not pose any human health concerns, nor is it present in the final product,” the lawmakers said. Getting the UK to lift the ban “will set the stage for future agreements, such as with the EU, and reinforce the administration’s stance that U.S. farmers and ranchers are an integral part of the American economy that should not be left behind.” The letter focuses on an issue that Lighthizer has already tabbed as one that is important to the U.S., but also he has predicted it will not be “the” issue that sinks the trade talks.
| Rural Advocate News | Thursday March 12, 2020 |
Thursday Watch List Markets Markets continue to react to public restrictions in response to the spread of coronavirus, while the more traditional market factors take a back seat. The usual Thursday morning reports will take place with weekly export sales, jobless claims and a new U.S. Drought Monitor due out at 7:30 a.m. CDT and joined by a report on U.S. producer prices. Natural gas inventory follows at 9:30 a.m. Weather Light rain and mixed precipitation will cross the western Midwest and portions of the western Plains Thursday. Other crop areas will be dry. Rain continues with moderate to locally heavy intensity into the eastern Midwest and Delta Friday.
| Rural Advocate News | Wednesday March 11, 2020 |
USDA Reports Progress on Implementation of China Phase One Agreement The Department of Agriculture Tuesday said there’s progress in the implementation of the U.S.-China Phase One Economic and Trade Agreement. Agriculture Secretary Sonny Perdue says China has taken several additional actions to reach its agriculture-related commitments. The actions include the signing of a protocol that allows the importation of fresh California nectarines, and the lifting of a ban on imports of U.S. beef and beef products from animals over 30 months of age. Additionally, China has updated its lists of facilities approved for exporting dairy, infant formula, seafood, and fish oil and fish meal. Also, China’s new tariff exclusion process went into effect on March 2 and importers can now apply for exclusions from retaliatory tariffs. Perdue says USDA will continue to closely monitor China’s implementation of the agreement that was signed February 14, 2020. Perdue adds, “These implementation measures are promising steps showing that China is taking steps to fulfill their purchase commitments.” ************************************************************************************* USDA WASDE Report Offers Little Change The monthly World Agriculture Supply and Demand Report Tuesday offered little change to Department of Agriculture forecasts. This month’s 2019/2020 U.S. corn supply and use outlook is unchanged relative to last month. The season-average corn price received by producers was lowered five cents to $3.80 per bushel based on observed prices to date. U.S. soybean supply and use projections for 2019/2020 are mostly unchanged this month, as well. With soybean crush and exports projected at 2.1 billion bushels and 1.8 billion bushels, respectively, ending stocks remain at 425 million bushels, down 484 million from last year’s record. The U.S. season-average soybean price is projected at $8.70 per bushel, down five cents. Finally, the 2019/2020 U.S. wheat supply and demand outlook is unchanged this month. The projected season-average farm price is also unchanged at $4.55 per bushel. The report followed Monday’s market plunge on coronavirus fears and large cuts to oil prices, which drug farm commodity prices lower, as well. However, farm prices and Wall Street mostly regained some ground Tuesday. ************************************************************************************* Rapid Start to 2020 for U.S. Pork Exports; Beef Exports also Trend Higher Following a record-breaking performance in 2019, U.S. pork exports maintained a torrid pace in January, while beef exports were also higher year-over-year. The U.S. Meat Export Federation says January pork exports cooled slightly from the volume and value records established in December 2019, but still far exceeded year-ago levels. Both the January export volume of 273,603 metric tons, up 36 percent year-over-year, and export value at $738.7 million, up 50 percent, were the second-highest on record. Meanwhile, beef exports posted more modest growth in January, increasing 2.5 percent from a year ago in volume at 107,374 metric tons and five percent in value at $672.7 million. Exports accounted for 13.1 percent of total beef production, down slightly from a year ago. Release of the January export data comes as coronavirus is dominating news headlines, including those related to global trade. USMEF President and CEO Dan Halstrom said the virus has had an impact on red meat exports, which will likely be more evident in February and March data. ************************************************************************************* Farmers Seek Reassurance of Trade During House Ag Subcommittee Hearing Farmers Tuesday asked lawmakers to assure positive trade outcomes for agriculture. The House Agriculture Subcommittee on Livestock and Foreign Agriculture heard from farmers regarding the current trade atmosphere. Subcommittee Chairman Jim Costa of California stated, “The President’s trade agenda has adversely impacted farmers in California and nationwide.” The National Milk Producers Federation urged lawmakers to “work with the administration to use negotiating resources wisely to target important agricultural markets and create greater access for U.S. dairy products.” In 2019, America’s dairy industry exported more than $6 billion in dairy products ranging from cheese to ice cream to milk powders. Iowa soybean farmer Robb Ewoldt told the committee 2020 holds a "50/50 proposition as to whether I'll receive an operating loan this year," adding he's taken a second job as a truck driver. He urged lawmakers to encourage the administration to initiate free trade negotiations with other trading partners and "assure positive outcomes to bilateral trade negotiations with the EU and the UK." ************************************************************************************ Farmers National: Slight Increase in Number of Land Buyers Despite volatile and uncertain markets, interest appears to be growing in farmland purchases. Farmers National Company reports a small increase in land buying interest from individual investors. The company specializes in farm management, real estate sales and auctions. The recent Market Facilitation Program, low interest rates and the idea of farmland as a long-term asset appear to support farmland prices. Further, with the stock market volatile and low CD rates, investors are more willing to look for alternatives to invest in, including farmland. Investment funds, for the most part, are remaining active in the land market. Meanwhile, farmers continue to be interested in buying land as there is a bit of optimism among producers for a better year than the last. Farmers National agents have seen stronger than expected prices being paid for cropland. Despite the short-term uncertainties swirling around agriculture, land is seen as the solid long-term asset that both farmers and investors are interested in owning. ************************************************************************************* USDA Predicts Sugar Market Gap, Request Export Increase The Department of Agriculture Tuesday requested an increase in sugar imports. Consistent with the Commerce Department’s Agreement Suspending the Countervailing Duty Investigation on Sugar From Mexico, USDA notified the Department of Commerce of an additional need for sugar in the U.S. market. Consequently, Commerce has increased the quantity of Mexican refined sugar permitted to be exported by 200,000 short tons raw value for the October 1, 2019 through September 30, 2020 period. Commerce previously increased Mexico’s refined sugar export limit by 100,000 short tons, also at the request of USDA, in November 2019. In the same way as the November request, Tuesday’s increase in Mexico’s refined sugar export limit will only change the mix between refined and other sugar. USDA says current market conditions point to a sugar shortage. This action is a further step in ensuring an adequate supply of sugar to the U.S. market, given the terms of the U.S. sugar program and the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico.
| Rural Advocate News | Wednesday March 11, 2020 |
Washington Insider: Fighting the Coronavirus Shocks The Washington Post is reporting this week that Wall Street continues to be skeptical that the Trump administration will design an effective coronavirus stimulus program. Questions are being raised about whether the package will be big enough – and whether the administration can secure congressional support for it. The economic stakes could hardly be higher, the Post thinks after Monday’s stock market meltdown that brought markets near “bear market territory” after falling almost 20% from highs just last month. The Post’s outlook also reflected a 24% decline in oil prices; and a sharp decline in the yield on the 10-year Treasury bonds which fell below 0.4%, a new low. Taken together, these results could be seen as a nearly “unmistakable verdict” from investors who “now expect a recession.” The Post added that a growing chorus of economists agree. This threatens a “downturn that could undermine the administration’s central argument for its reelection, the report said. Against that “darkening backdrop,” the administration announced Monday that it was assembling a relief package to sustain dislocated workers and keep businesses afloat. It was described as a payroll tax cut as well as help for hourly workers including a short-term expansion of paid sick leave. The administration’s comments made clear that the White House is now considering a “large and expensive government response,” the Post said and commented that this marks a sharp policy turnaround in just a matter of days. While the president had floated the idea of a payroll tax cut earlier, his economic advisers had placed the burden on the Federal Reserve for backstopping the economy. Larry Kudlow, the top economic hand, as recently as Friday pooh-poohed a big fiscal response, arguing such packages “have never really worked in the past.” In addition, the administration can’t take congressional support for whatever it proposes for granted, the Post said. House Speaker Nancy Pelosi, D-Calif., and Senate Minority Leader Chuck Schumer, D-N.Y., outlined their preferences last weekend calling for paid sick leave, enhanced unemployment insurance, expanded food stamp benefits and “widespread and free” coronavirus testing and reimbursement for care not covered by insurance. House Democrats are set to hear today from Jason Furman, who served as President Obama’s top economist and Claudia Sahm, a former Fed economist who specializes in recessions. Both have called for major fiscal responses – Furman is ballparking the price tag at $350 billion. And both say the benefits must be tailored to make an impact quickly for the most vulnerable, a mark they say a payroll tax cut misses. “It would be too slow and dispersed to substantially stimulate the economy, as households would receive only a modest benefit every pay period,” Furman wrote in the Wall Street Journal last week. “The distributional effects are worrisome as well: A one-year payroll tax cut of 2% of income would provide up to a $5,508 tax cut to a high-income couple but only $500 to a single parent getting by on $25,000 a year – and nothing for a worker placed on leave without pay. This isn’t the fairest or most efficient way to increase aggregate demand.” Senate Finance Committee Chairman Chuck Grassley, R-Iowa, is considering “targeted tax relief measures,” a spokesman said, though it is not clear what those include. And “some of his fellow Republicans are less interested,” the Post said. Indeed, the president and his top aides continue projecting optimism that the coronavirus will prove only a short-term and limited drag on the economy in the face of evidence to the contrary, the Post noted. The President “has spent much of the past four days tending to campaign benefactors and preoccupied with his own political future,” the report said. “He has used those settings to complain about what he considers to be coronavirus hysteria in the media and overreaction by financial markets.” Administration officials nevertheless say that we will provide whatever tools we need and that “the economy will be in very good shape a year from now,” Treasury Secretary Steven Mnuchin said at the Monday evening press conference. “This is not like the financial crisis where we don't know the end in sight. This is about providing proper tools and liquidity to get through the next few months.” Mnuchin’s comments drew a rebuke from Larry Summers, a predecessor at the helm of Treasury. “For the Secretary to suggest it’s all in hand is to put his credibility at some risk and I don’t think people in positions of responsibility for economic policy should ever try to be definitive about what economic outcomes are going to be,” Summers said. Summers, who helped craft the 2009 stimulus package in the teeth of the financial crisis, said there is now “much more danger that we will do too little than we will do too much.” Considering how low the yield has fallen on longer-term U.S. debt, “the market is begging the government to borrow money,” Jay Shambaugh, director of the Hamilton Project at Brookings, says. “Take out some insurance against big downside risk. If it turns out we didn’t need it, it’s not the end of the world.” So, we will see. As pressure builds to “do something” about the increasingly bleak economic outlook, the fight over what that could turn out to be certainly is one producers should watch closely as the debate intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday March 11, 2020 |
USTR Announces Two Public Hearings on Imports of Seasonal, Perishable Products Public hearings will be held April 7 in Plant City, Florida, and April 9 in Valdosta, Georgia, by the Office of the U.S. Trade Representative, USDA and the Department of Commerce. The two sessions are planned to “hear firsthand from interested persons on trade distorting policies that may be causing harm to U.S. seasonal and perishable producers (namely, of fresh fruits and vegetables) and contributing to unfair pricing in the U.S. market, and to solicit feedback on how the Administration can better support these producers and redress any unfair harm.”
| Rural Advocate News | Wednesday March 11, 2020 |
R-CALF Blasts Perdue For Country Of Origin Labeling (COOL) Comments USDA Secretary Sonny Perdue’s suggestion last week that voluntary labels declaring that meat is “slaughtered and processed in the U.S.” might be acceptable in lieu of mandatory Country of Origin Labeling (COOL) not surprisingly have drawn criticism from Ranchers-Cattlemen Action Legal Fund United Stockgrowers of America (R-CALF USA). Perdue last week suggested it was an option that could pass scrutiny at the World Trade Organization (WTO), which found a previous U.S. mandatory COOL effort ran afoul of trade rules. "This is exactly what the meatpackers and meat importers want: a label that does not identify in which country the cattle used to produce the meat were born and raised," said R-CALF USA CEO Bill Bullard. There continues to be some labeling of U.S. beef and pork in grocery stores that indicate the meat was from animals born, raised and harvested in the U.S., but those efforts are not mandatory but reflect some grocery stores opting to not go through the expense of changing what had been mandatory labels.
| Rural Advocate News | Wednesday March 11, 2020 |
Wednesday Watch List Markets Coronavirus fears and OPEC continue to hold shock collars on the market, but in another sense, life keeps moving forward. The U.S. Labor Department reports on consumer prices at 7:30 a.m. CDT, followed by the Energy Department's weekly inventories at 9:30 a.m. The latest federal budget numbers are set for release at 1 p.m. CDT. Weather Wednesday will be dry in most crop areas. Precipitation will be confined to scattered thunderstorms in the south-central U.S. and some snow in the Great Lakes. Temperatures will be seasonal to above normal. A wetter pattern is indicated by the end of the week, notably in the Delta-Ohio Valley
| Rural Advocate News | Tuesday March 10, 2020 |
USDA Approves School Meals in Washington, California, During Coronavirus Closures The Department of Agriculture over the weekend approved requests from California and Washington to allow meal service during school closures to minimize potential exposure to the new coronavirus. The meals are available at no cost to low-income children, and are not required to be served in a group setting, to ensure kids receive nutritious meals while schools are temporarily closed. The waivers are effective immediately and will continue through June 30, 2020. Brandon Lipps, Deputy Undersecretary for USDA’s Food, Nutrition, and Consumer Services, says the agency “stands ready” to provide additional assistance to California and Washington, along with any other areas impacted by COVID-19, the disease caused by the new coronavirus. Confirmed cases of the virus are expected to increase in the United States as the availability of test kits increases. USDA says all Food and Nutrition Service programs have flexibilities and contingencies built-in to allow them to respond to on-the-ground realities in the event of a disaster or emergency. For more information about the coronavirus response across USDA, visit www.usda.gov/coronavirus. ************************************************************************************* Global Denatured Ethanol Demand Up European demand for denatured ethanol recently doubled. Cargill told Reuters the spike comes as denatured ethanol is an ingredient in hand sanitizers, and demand for hand sanitizers has surged in recent weeks amid the global outbreak of the new coronavirus. The virus has spread to more than 105 countries across the globe, with more than 100,000 cases reported and 3,800 deaths, globally. The U.S. Centers for Disease Control recommends people use hand sanitizers with a minimum of 60 percent alcohol to combat the virus. However, the best precaution, according to medical experts, is regular and thorough handwashing. A study released in September of last year reported the denatured ethanol market was projected to grow 6.8 percent in revenue by 2024, reported before the outbreak. At the time, MarketWatch said demand was low with excess supply. Since the outbreak, hand sanitizers have been quickly selling out on store shelves and online, as the global population seeks to protect itself from the virus. ************************************************************************************* Ag Events Postponed, Changed, Because of Coronavirus Agriculture events planned for this spring are being impacted by the coronavirus spread in the United States. Alltech will transition ONE: The Alltech Ideas Conference to a virtual setting because of the outbreak. In a Monday press release, Alltech noted the company will present ONE session topics online, instead of a live event in 2020. The event, planned for May 17-19 in Lexington, Kentucky, annually hosts more than 3,500 attendees from 70 countries. Also, a Department of Agriculture and Health and Human Services Department meeting on Dietary Guidelines scheduled this Thursday and Friday will be held online. Meanwhile, Dairy Farmers of America last week announced the postponements of its annual meeting this month. On the DFA annual meeting website, dfa20am.com, the organization states, “out of an abundance of caution, DFA’s Annual Meeting, currently scheduled for March 16-18, is being postponed.” DFA cites coronavirus concerns as the number of cases continues to increase in the United States. DFA had planned the event in Kansas City, Missouri, for roughly 1,500 attendees. ************************************************************************************* EPA Taking More Time to Respond to SRE Ruling The Environmental Protection Agency is taking more time to reply to a federal court ruling against Small Refinery Exemptions. The EPA Friday filed an extension to the Justice Department to grant the agency an additional 15 days to respond to the ruling. The request pushes the deadline to March 24, according to Politico. The Trump administration now plans to appeal the ruling that struck down three waivers granted back in January. The ruling could significantly narrow the scope of allowed waivers. An appeal would be upsetting to ethanol and corn groups. An effort to sway the White House to appeal the rule, led by Texas Republican Senator Ted Cruz, is seen as a “misinformation campaign,” according to Growth Energy. In a joint statement by farm groups, including Growth Energy, they state, “The president needs to understand that Ted Cruz doesn’t care about this administration or families across the heartland who are counting on the White House to keep its promises.” ************************************************************************************* NMPF: Lactose-Free Milk is Growing Faster Than Plant-Based In 2019, lactose-free milk sales grew twice as fast as plant-based beverages, with lactose-free poised to surpass almond-beverage sales this year. The National Milk Producers Federation says lactose-free milk is a prime example of how dairy is addressing per-capita drops in fluid-milk consumption. Dairy categories increasing their sales, including whole milk, lactose-free milk and flavored varieties, are giving plenty of reason for optimism about the future of milk. The organization does note plant-based beverage growth, but “from a tiny base.” Almonds, with about three-quarters of sales, drive the plant-based beverage category. And almond-beverage sales are growing, although not as fast as lactose-free milk. Among plant-based beverages that aren't almonds, soy is number two. But soy is declining, in 2018, by more than 13 percent from $248 million to $215 million, a percentage drop much greater than any sales decline in dairy. Meanwhile, Americans bought $13.88 billion of milk in 2019, down from $13.93 billion. ************************************************************************************* U.S. Plant Based Food Retail Market Worth $5 Billion The Plant Based Foods Association says retail sales of plant-based foods have grown 11.4 percent in the past year, bringing the total plant-based market value to $5 billion. The total U.S. retail food market has grown just 2.2 percent in dollar sales during this same period. The association, along with the Good Food Institute, says the leading drivers of plant-based sales continue to be plant-based milks, meat, dairy alternatives in general, and plant-based meals. The total plant-based meat category alone is worth more than $939 million, with sales up 18 percent in the past year. Refrigerated plant-based meat is driving growth, up 63 percent. Emerging plant-based dairy categories are growing even faster as more households are introduced to new plant-based dairy items. In the past year, plant-based yogurt has grown 31 percent, while plant-based cheese has grown 18 percent. Plant-based creamers alone account for almost $300 million, growing 34 percent with its share of total creamers growing from four percent a year ago to five percent in 2019.
| Rural Advocate News | Tuesday March 10, 2020 |
Washington Insider: Managing the Phase One Agreement Amid heavy-duty market uncertainty, Bloomberg weighed in on progress toward the phase one goals of the china trade deal this week. The U.S. is willing to show China “some flexibility” on its pledges to boost American imports — but is expected to insist that Beijing prevents an export surge when its production returns to full strength. The key metric will be whether the trade imbalance widens between the world’s two largest economies, the report said. Given Beijing’s challenges in containing its coronavirus outbreak and the country’s lagging demand for American imports, U.S. officials are thought to have told their Chinese counterparts that China’s purchasing boost, signed in January with specific target dates and commodities, could start off slowly, Bloomberg says. That understanding comes with “some conditions.” The administration has made clear that its “flexibility” is only an option as long as there isn’t a sharp rebound in shipments of Chinese products without a corresponding upswing in imports. Such a development could swell the already gaping U.S. trade deficit with China — the metric President Trump has frequently based his policies on. One other condition being noted is that the total of the purchase targets can’t change and that China’s purchases fulfill the commitments eventually. The White House declined to comment on Bloomberg’s report and directed questions to the U.S. Trade Representative who said that the “U.S. expects China to meet its commitments under the agreement.” The U.S.-China trade balance is a frequently used administration gauge to measure “who’s winning the global battle for economic supremacy — but a measure most economists find wanting.” Still, Bloomberg thinks there would likely be little patience in the U.S. administration — particularly leading up to Trump’s re-election bid in November — to let China delay purchases for long while exports accelerate. Bloomberg notes that trade observers express some uncertainty about how China would ensure that there is no surge in exports. For the first two months of this year, China had a trade surplus of $25.4 billion with the U.S. but that deficit with narrowed in January to $23.7 billion, the smallest since 2011, according to U.S. data released last week. The phase-one trade deal that led to a tariff cease-fire took effect in mid-February. Since then, China has been making progress in fulfilling some of its agreed requirements, lowering tariffs, reducing restrictions on U.S. agricultural products and approving Mastercard Inc. to set up a bank-card clearing business. However, with the economy shut for much of January and February due to Lunar New Year holiday and then the COVID-19 outbreak, there is little evidence that China has continued to fulfill its promise in the deal that’s most important to the administration — a sharp increase in its purchases from the U.S. China agreed to increase its imports of U.S. goods and services by $76.7 billion over the 2017 level in in the first year of the deal and then by $123.3 billion in the second year, increasing imports by a total $200 billion over two years. A more detailed annex of the agreement that lays out specific commodities and their target numbers was classified. The document also set up regular meetings to discuss the progress and implementation of the agreement. The two sides are currently preparing for talks, Bloomberg said. The president acknowledged last week that the buying spree might not fully be in effect before November. “They’re going to start kicking in fairly soon. Unfortunately, by the time we get to the election they’ll just be partially kicked in,” the president said about his China deal and other trade agreements in a TV interview last Wednesday. So, we will see. Clearly, the administration faces a serious challenge as it seeks to limit economic damage from the coronavirus outbreak. How it manages both its economic threats and its trade policies are issues that should be watched closely by producers as the season progresses, Washington Insider believes.
| Rural Advocate News | Tuesday March 10, 2020 |
EIA Expects Slowing Growth for Biofuel U.S. biofuel production is expected to slowly grow through 2050, according to the Annual Energy Outlook 2020 from the Energy Information Administration (EIA), with economic and policy factors the key reasons for that expectation. U.S. biofuel consumption in 2019 totaled 1.09 million barrels per day (bpd) and accounted for about 7.3% of total motor gasoline, distillate and jet fuel consumption. Ethanol production “slowly decreases between 2019 and 2030, and then it increases toward the end of the projection period, largely mirroring the Reference case projection for motor gasoline consumption,” EIA said. “The projected decline in domestic ethanol-blended gasoline consumption is offset by increasing U.S. ethanol exports.” EIA expects that biodiesel production will rise by 30,000 bpd from 2019 to the end of the forecast period, with other biofuels will rose by 80,000 bpd. While the biodiesel tax credit is not included in the forecast, EIA said, the renewal of the credit “is expected to increase domestic production and net imports of biomass-based diesel.”
| Rural Advocate News | Tuesday March 10, 2020 |
US Ag Trade Bucks Overall Trade Trend U.S. agricultural trade data for January showed exports at $11.44 billion against imports of $11.67 billion for a trade deficit of $234 million. U.S. ag exports nudged higher by just $65 million while imports rose by $306 million, producing the monthly red trade ink. Overall U.S. exports fell slightly while imports posted a larger decline, trimming the U.S. trade deficit. This marks the fourth month in the last year that U.S. agriculture has registered a monthly trade deficit. So far in Fiscal Year (FY) 2020, ag exports total $48.03 billion ($46.85 billion year ago) while imports are at $43.65 billion ($43.25 billion year ago) with a trade surplus of $4.38 billion ($3.61 billion year ago). USDA in February forecast U.S. ag exports for FY 2020 to be at $139.5 billion against imports at a record $132.5 billion for a trade surplus of $7 billion. That suggests there will be more months ahead with either minimal trade surpluses for agriculture or monthly deficits.
| Rural Advocate News | Tuesday March 10, 2020 |
Tuesday Watch List Markets The way the coronavirus concerns and OPEC's decision to increase oil production hit markets Monday, more selling may show up Tuesday. Market fundamentals have not been carrying much weight lately, but USDA will issue its March WASDE report at 11 a.m. CDT. South American weather and any trade reports will also get attention. Weather Light to moderate rain is in store for the eastern Midwest and Southeast Tuesday. Other crop areas will be dry except for light snow in the north-central Plains. Temperatures will be seasonal to above normal with notable warmth in the Plains.
| Rural Advocate News | Monday March 9, 2020 |
USDA Sets ASF Response Plan in Place At the National Pork Industry Forum, USDA Undersecretary for Marketing and Regulatory Programs Greg Ibach (EYE-baw) announced an African Swine Fever Action Plan is in place should the disease be detected in the U.S. pork herds. So far, the U.S. is free of the ASF virus and prevention remains the number one priority for the National Pork Producers Council. According to the plan, Ag Secretary Sonny Perdue would immediately declare an “extraordinary emergency” if ASF is detected in the U.S. By doing that, the USDA would be established as the leader of a national, coordinated response to control and eradicate the swine disease. It would also ensure the availability of funding and other resources to manage the response. Other plan elements include a national stop-movement of pig’s order of at least 72 hours, depopulation efforts aligned with guidance from the American Veterinary Medical Association, support for carcass disposal, and payments for virus elimination based on the size of affected premises. The NPPC remains committed to working with the USDA and Customs and Border Protection to keep ASF out of the United States. ********************************************************************************************** U.S. Poultry Entering China without Retaliatory Tariffs Beijing recently made U.S. poultry shipments eligible for exemptions from extra tariffs and poultry shipments to China are on the rise. A Reuters article points out that the additional tariff relief may give China a greater ability to follow through on promises to buy significantly more American agricultural goods as part of the Phase One trade deal. U.S. chicken producer Tyson Foods says its chicken shipments are already rising as a result. China had said last month it would grant exemptions on retaliatory duties to 696 U.S. goods as part of its efforts to ease the trade war between the two largest economies in the world. Jim Sumner, President of the USA Poultry and Egg Export Council, says U.S. poultry wasn’t eligible for the exemptions until last week. “We’re now getting the product into the country without any retaliatory tariffs,” Sumner says. Global meat and poultry suppliers are competing for sales to China, where an African Swine Fever outbreak has trimmed the hog herd by more than 40 percent, raising the need for protein imports. Beijing removed an almost five-year ban on U.S. poultry imports in November, which U.S. Trade Representative Robert Lighthizer says would mean an additional $1 billion in shipments to China every year. “We’re now on a level playing field with other poultry suppliers to China,” Sumner adds. ********************************************************************************************** Treasury Department to Fix the “Grain Glitch” The National Council of Farmer Cooperatives is optimistic that Internal Revenue Service officials will adjust the Section 199A tax break, thanks to testimony from the Treasury Secretary. For more than two years, farmer cooperatives have been working to re-implement a tax deduction comparable to what they received before the 2017 tax law was passed. Last summer, the Treasury Department proposed rules that would limit the Section 199A deduction to patronage income. However, the Treasury rule would then eliminate cooperatives’ ability to combine “non-patronage income” as part of the calculations for the tax deduction. The tax challenge came to light in early 2018 after it had first appeared the 2017 tax law would make it much more lucrative for farmers to sell grain to farmer cooperatives rather than to private grain companies. Congress fixed the provision, but the Treasury Department has been bogged down since then trying to complete a rule that would go along with the tax fix. Because of the complex agreement that Congress passed, cooperatives got a special break under Section 199A because they couldn’t take advantage of the new lower corporate rates. The final deal was supposed to then reinstate a tax break that cooperatives had been using before the 2017 tax law. ********************************************************************************************** Farmer Attendance Sets Commodity Classic Record The 2020 Commodity Classic set a record for the number of farmers attending the event. The total number of farmers who registered for the event was 4,678, the highest number in the show’s 24-year history. That was 83 more farmers than the previous record of 4,595 set in New Orleans during the 2016 Classic. The 9,350 total registrations were second only to the 2016 event in New Orleans. The 2020 Commodity Classic, set in San Antonio, Texas, was jam-packed with dozens of educational sessions, a huge trade show that featured almost 400 exhibitors, a keynote address by Ag Secretary Sonny Perdue, as well as policy meetings of the sponsoring commodity organizations. The Commodity Classic will celebrate its silver anniversary as it makes a return to San Antonio, March 4-6, 2021. The Classic was first established in 1996 and is America’s largest farmer-led, farmer-focused educational and agricultural experience. The Commodity Classic is presented every year by the American Soybean Association, National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers, and the Association of Equipment Manufacturers. ********************************************************************************************** NPPC Elects New Officers The National Pork Producers Council elected new officers and board members during the National Pork Industry Forum in Kansas City. Howard Roth, a pig farmer from Wisconsin, was elected as the new NPPC president. He’s a fifth-generation farmer who owns Roth Feeder Pigs. In addition to serving on the NPPC board for eight years, he previously was a member of the Wisconsin Pork Association board of directors and is currently the chair of the association’s Swine Health Committee. Roth takes over from David Herring, a North Carolina farmer who now becomes the NPPC immediate past president and chair of the council’s trade and nominating committees. Jen Sorenson is the new NPPC president-elect. For the past nine years, she’s been with Iowa Select Farms, a business that markets more than five million hogs per year. Sorenson was previously the communications director for the Iowa Pork Producers. Terry Wolters of Pipestone, Minnesota, is the new NPPC Vice President. He’s involved in the Minnesota and South Dakota Pork Producers groups, the Pipestone County Pork Producers, the National Pork Board, and chairs the Animal Health Food Security Policy Committee. ********************************************************************************************** CRP Grasslands Signup Begins on March 16 Farmers and ranchers can start applying to enroll grasslands in the Conservation Reserve Program Grasslands signup on March 16. “This CRP Grasslands signup allows farmers and ranchers to protect grasslands, rangelands, and pastures, while they maintain the land as working grazing lands,” says Farm Service Agency Administrator Richard Fordyce. “The program emphasizes support for grazing operations and plant and animal biodiversity while protecting land under the greatest threat of conversion or development.” CRP Grasslands participants retain the right to conduct common grazing practices like haying, mowing, or harvesting seed from the enrolled land. The timing of some activities may be restricted by the primary nesting season of birds. Participants will receive an annual rental payment and may receive up to 50 percent cost-share for establishing approved conservation practices. The duration of a CRP contract is either 10 or 15 years. Signup will run through May 15. CRP marks its 35th anniversary in 2020 with 22 million acres currently enrolled in the program.
| Rural Advocate News | Monday March 9, 2020 |
Washington Insider: Probably Not A Recession There’s a lot of talk about the virus, the outbreak and the economic impacts expected these days. For example, Bloomberg reported this weekend that after days of playing down coronavirus risks, the administration shifted ground on Friday and “opened the door to some micro-measures” to shelter what they argue is a fundamentally strong U.S. economy. Investors, who recently have been stampeding toward the safest of assets seemed to be expressing a different view, with some pressing the administration to “go macro.” At the end of last week, top administration economic adviser Lawrence Kudlow said a package could include help for workers forced to stay home – and small businesses or industries such as airlines hard-hit by the virus. Still, he advised “let’s not assume the worst.” In particular, he dismissed the need for the kind of across-the-board fiscal stimulus that some economists have urged: “We don’t want to willy-nilly throw $300-$400 billion, with a thousand-dollar check to every American.” Financial markets appear to be clamoring for something very much along those lines, Bloomberg said. While U.S. stocks recouped some losses late Friday, they’re still down more than 10% from last month’s peak. And, investors are worried that not enough is being done to prevent a recession. Michael Feroli, JPMorgan Chase & Co.’s chief U.S. economist, said, “We could be facing a problem of a shortfall of aggregate demand, in which case, just targeted stimulus may not be enough.” In addition, even as Kudlow was hinting at the possibility of action “soon” the President questioned whether fiscal stimulus was needed and again pounded the Fed for more action. “The Fed should cut and the Fed should stimulate,” he said. Kudlow said the White House would be able to “move very rapidly” if conditions worsen, and that it could use executive orders, but would not hesitate to go to Congress for more assistance. Congress so far hasn’t shown much appetite for a big fiscal push to fight the virus, either. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and Ways and Means Chairman Richard Neal, D-Mass., both said this week that it was too soon to talk about tax cuts. Congress did pass–and the President signed on Friday–an $8 billion emergency spending bill that includes funds to help state and local governments fight the virus and low-cost loans for small firms facing disruptions to their business. In addition, on Sunday Bloomberg published a slightly sunnier report that acknowledged that “when $7 trillion is erased from stocks in 2 1/2 weeks, it’s safe to say investors are pricing in a lot of economic pain.” However, it concluded that “one thing most of them are not yet bracing for is a recession.” The view, drawn from a survey published by a Wall Street research firm may sound fanciful, given the spread of the coronavirus and its rising threat to the global economy, the report said. “But it’s not grossly out of line with price action so far in the S&P 500,” which has fallen roughly as much as it did in its last six corrections. None of those episodes portended an economic contraction. Bloomberg called the sell-off “harrowing” but noted that by almost any measure except velocity it remains a pipsqueak compared with the battering investors took at the end of 2018 when the S&P 500 plunged almost 19% while price-earnings ratios compressed to 16 times annual earnings. They’re a lot higher than that now at 19.3. “The market’s saying ‘Ok, obviously equity valuations need to be significantly lower than they were before this started,”’ said Arthur Hogan, chief market strategist at National Securities Corp. “But pricing in a recession in the equity markets is probably not what’s happening right now.” Bloomberg said that the recent investor survey conducted by Evercore ISI found less than half of the respondents are expecting the economy to experience two consecutive quarters of negative growth in 2020. While acknowledging the economic threat from the coronavirus has grown, about two-thirds anticipate the number of infected cases to peak in May. Of course, not knowing how the outbreak will play out makes predicting its effect on growth impossible. But it’s also worth noting that the U.S. stock market was priced at a historically high multiple when the sell-off began, a fact that complicates the calculus using reactions in equities as a litmus for how bad the virus’s impact will be. Michael Geraghty, equity strategist at Cornerstone Capital Group, said “The U.S. economy is undoubtedly strong. It would take a lot to swing it into a recession and I don’t think the virus is likely to do that anytime soon.” “With a lot of unknowns out there, the market will be more volatile and will pull back a bit but it doesn’t necessarily mean a recession,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said. “Things could wrap up really quick and we could resume a bull market.” So, we will see. Clearly the market and the global economy face significant uncertainty and possibly new threats as the outbreak runs its course—developments producers should watch closely as the political season advances, Washington Insider believes.
| Rural Advocate News | Monday March 9, 2020 |
DOE Chief Expects China To Live Up To Phase One Energy Purchase Commitments The coronavirus situation is not expected to keep China from fulfilling its pledge to buy more U.S. energy products under the phase-one trade deal between the two countries, according to Energy Secretary Dan Brouillette. Asked if the situation will impact those purchase commitments, Brouillette said, “It is hard to tell. I do not have any expectations at the moment that it will.” He added he thinks “the Chinese have every intention of honoring their agreements.” While the U.S. could see some impact on overall energy demand, he reiterated “there is no expectation that someone is not going to honor their agreements.” He made the comments at a briefing with International Energy Agency (IEA) Executive Director Fatih Birol who noted the group has “revised” its global oil demand expectations “significantly.” Since China accounted for 80% of demand growth for crude oil last year, Birol noted their economic downturn will have an outsized impact on oil demand expectations. "Coronavirus is affecting oil markets disproportionately more seriously than the global economy,” he observed. As for U.S. shale oil production, Brouillette said it was too soon to tell if there will be a significant impact.
| Rural Advocate News | Monday March 9, 2020 |
Reuters: China Granting Tariff Exemptions for Some Ag Products Some Chinese crushers have applied for and been granted tariff exemptions to import soybeans, according to sources cited by Reuters, with the exemptions in place for a year in line with an announcement from the Chinese government last month. The report also said exemptions have bene granted for U.S. sorghum, wheat and distillers’ dried grains (DDGs). U.S. Dairy Export Council President and CEO Tom Vilsack said this week that exemptions for dairy products were also being granted. The report indicated there were no issues for importers to get the exemptions with the government announcement of the exemption availability signaling a decision would be made within a matter of days after the request for the one-year exemption was made. The report indicated the expectation was that U.S. soybeans would likely be eyed for August-September forward.
| Rural Advocate News | Monday March 9, 2020 |
Monday Watch List Markets The only official report on Monday's docket is USDA's weekly report of export inspections, due out at 10 a.m. CST. South American weather, any trade news and the latest coronavirus numbers will also get the market's attention ahead of USDA's WASDE report on Tuesday. Weather Rain and mixed precipitation will cross the central and southeastern Plains and the western Midwest Monday. The moisture will keep soils saturated and may cause some local flooding. Dry conditions will be in place elsewhere.
| Rural Advocate News | Friday March 6, 2020 |
USDA Proposes SNAP Changes The Department of Agriculture Thursday announced a proposed rule that it says will strengthen the way states serve Supplemental Nutrition Assistance Program recipients through Employment and Training. Agriculture Secretary Sonny Perdue says, currently, SNAP participants have exclusive access to training and support services to help them enter or move up in the workforce. The proposed rule, Employment and Training Opportunities in the Supplemental Nutrition Assistance Program, makes changes to these services to “empower more SNAP participants to gain the skills, training, or work experience they need to move toward – and into – employment.” USDA says the proposed changes are evidence-based and hold states accountable for providing SNAP Employment and Training services that move participants towards work. The Hagstrom Report points out that the rule also states repeatedly that state agencies shall inform all able-bodied adults without dependents, a category of SNAP recipient, of the work requirement on them and the time limit to comply both in writing and orally. ************************************************************************************* NPPC Applauds Signing of Ag Inspectors Bill The National Pork Producers Council welcomed the signing of a bill to increase the number of agricultural inspectors at U.S. entry points. NPPC says the bill will help prevent the spread of African swine fever, and other foreign animal diseases from entering the United States. The legislation authorizes funding for 720 new agricultural inspectors at land, air and sea ports. The legislation also authorizes 600 new agricultural technicians and 60 new agricultural canine teams. NPPC President David Herring, a hog farmer from North Carolina, says, “This is a victory for farmers, consumers and the American economy.” NPPC says the most likely path for a foreign animal disease to enter the country would be through the illegal transport of contaminated products. An outbreak of certain foreign animal diseases would immediately close U.S. pork export markets, causing significant damage to farmers and consumers. NPPC continues to advocate for other preparedness measures, including quickly establishing a U.S. Foot-and-Mouth Disease vaccine bank as provided for in the 2018 Farm Bill. ************************************************************************************* R-CALF Calls Again for COOL Amid Brazil Imports In response to the late February announcement by the Department of Agriculture that it will open the U.S. market to fresh beef from Brazil, R-CALF is calling for the restoration of mandatory Country-of-Origin meat labeling. The organization points out that Brazil is a country with a history of engaging in corrupt food safety practices, and is distributing a research paper to congressional offices titled Restoring Mandatory COOL for Beef Without Running Afoul of the WTO’s Adverse Ruling. R-CALF USA CEO Bill Bullard says the lack of Country-of-Origin meat labeling “means beef produced by America’s cattle farmers and ranchers cannot compete against the soon-to-arrive increased quantities of Brazilian beef.” Bullard claims the only way to end consumer deception is for Congress to pass legislation requiring Mandatory Country-of-Origin Labeling on all beef products sold at retail stores. Congress removed beef and pork from the current COOL law in late 2015 to avoid retaliatory tariffs from Canada and Mexico, authorized by the World Trade Organization. ************************************************************************************* Midwest Lawmakers Introduce Missouri River Management Bill Midwest lawmakers Thursday introduced legislation to overhaul the U.S. Army Corps of Engineers’ process for managing water resource projects along the lower Missouri River system. Senators from Iowa, Kansas, Missouri and Nebraska introduced the bill to establish a new program that would require the Corps of Engineers to implement a system-wide approach to water development projects to reduce flood risk and improve flood protection along the lower Missouri River. Iowa Republican Joni Ernst says, that, “As evidenced by the recurring flooding in the lower basin, the current approach is not working.” Missouri Republican Senator Roy Blunt says the bill gives the Corps of Engineers the “ability to develop a comprehensive system plan to design and build critical flood control projects that will do a better job of protecting people and property.” The lawmakers say the proposal provides greater efficiencies and streamlining with regard to how the Corps plans for and manages Missouri River water resource development projects from inception to completion. ************************************************************************************* 2020 Missouri River Runoff Expected Above Average Forecasters expect another above-average runoff year along the Missouri River. Current conditions, including soil moisture, plains and mountain snowpack, as well as long-term temperature and precipitation outlooks forecast runoff to be 36.9 million acre-feet, 143 percent of average, for the upper Missouri River basin above Sioux City, Iowa for 2020. Average annual runoff for the upper basin is 25.8 million-acre feet. Gavins Point releases were decreased from 38,000 cubic feet per second to 35,000 this week as tributaries downstream of Gavins Point began to rise due to the melting of the plains snowpack in South Dakota. The potential for above-average runoff in the upper basin, coupled with continued high river stages on many of the uncontrolled tributaries downstream of the reservoir system, increases the potential for flooding, particularly in the lower river. Many farmers along the Missouri River are still recovering from flooding in 2019 that started in March of last year. ************************************************************************************* FDA Creates Feed Your Mind initiative to Increase GMO Understanding A new federal collaboration seeks to improve consumer understanding of genetically modified organisms. Created by the Food and Drug Administration, in collaboration with the Environmental Protection Agency and Department of Agriculture, the Feed Your Mind initiative aims to answer the most common questions that consumers have about GMOs. FDA Commissioner Stephen Hahn says that while GMO’s are a common part of the food supply, “there are a lot of misconceptions about them,” adding, the initiative is intended to help people better understand what these products are and how they are made. The Feed Your Mind initiative is launching in phases. The materials released this week include a new website, as well as a selection of fact sheets, infographics and videos. Additional materials—including a supplementary science curriculum for high schools, resources for health professionals and additional consumer materials—will be released later in 2020 and 2021. Find the information online at www.fda.gov/feedyourmind.
| Rural Advocate News | Friday March 6, 2020 |
Washington Insider: Chinese Farm Imports Questioned Bloomberg is reporting this week that crop traders obsessing over the deadly coronavirus in China “may be overlooking another key challenge to the administration’s phase one trade deal: the strength of the U.S. dollar.” The report says the virus outbreak is upending supply chains and cutting food demand in China, delaying billions of dollars in U.S. sales of everything from pork to soybeans. It also thinks that making up for the losses later in the year may be difficult if the dollar continues to strengthen against currencies in Brazil and Argentina, two of the top U.S. ag rivals. China has pledged to buy $36.5 billion in U.S. farm goods this year under the trade deal, $12.5 billion more than in 2017. But some tariffs remain in place and China has said its purchases need to make economic sense with both Washington and Beijing acknowledging that the timing of the sales depends on market conditions. “We are already dealing with retaliatory tariffs and now coronavirus presents challenges for China to fill its obligations,” said Dan Kowalski, vice president of research at CoBank, a $145 billion lender to the agriculture industry. “If the dollar remains strong, that has tangible impacts on market conditions. And that could or could not play a part in China filling its purchases.” Phase one of the trade deal specifies that “the parties acknowledge that purchases will be made at market prices based on commercial considerations and that market conditions, particularly in the case of agricultural goods, may dictate the timing of purchases within any given year.” Traders were already skeptical China would reach the phase one targets before the virus hit, as indicated by USDA’s internal export projections, Bloomberg notes. “Now, with the Brazilian real and the Argentine peso hitting record lows against the dollar, the trade-deal targets are even more in doubt,” the report said. “We always have to be mindful that the Chinese are price buyers,” said Stephen Nicholson, a senior analyst for grains and oilseeds at Rabobank. “I don’t think that’s going to change under phase one. They are going to do what they do. I think they will continue to buy what they need and they will buy at the best price. It’s an ingrained behavior.” For now, U.S. authorities are dismissing the currency threat. Ag Secretary Sonny Perdue said at a USDA forum last month that he expects China to live up to its pledges and Ted McKinney, the undersecretary of agriculture for trade, added that their $36.5 billion commitment stands despite the dollar strength. Gregg Doud, U.S. chief agricultural negotiator in U.S. Trade Representative’s office also dismissed the idea. But he also delivered a “scary prospect for American farmers already dealing with high debt, several years of low prices and piles of corn and soybeans from last year’s harvest still stashed in their bins,” Bloomberg said. “At least in my mind, as an old commodity analyst, I don’t think that’s an issue here,” Doud said at the USDA event. “It just means that as that gap gets further, the U.S. price has to come down to be competitive with what’s going on in South America.” Brazil is already harvesting a record soybean crop and with a weaker real boosting farmer profits, the incentive will be there to expand plantings in the years to come. The same goes for Argentina, though the hike in export taxes there has made shipments less appealing. “Maybe China doesn’t reach $36.5 billion,” said Dan Basse, president of consulting firm AgResource. “But I think if you were to ask the market today, and say it’s going to do the same as in 2017 – $24 billion, $28 billion – we’d probably be OK there.” There’s no reason to sound the alarm bells at this point, said CoBank’s Kowalski. The lender believes China will make a “good faith” effort to meet the targets and said the nation will have a bigger opportunity to buy American farm goods in the second half of the year. Concerns about the slowdown of the Chinese economy may also end up helping the nation meet its pledges. That’s because the agreement allows for nations to impose tariffs equivalent to the size of the damage without retaliation in the case of non-compliance. “They signed an agreement, they know it’s enforceable,” Steve Censky, USDA’s deputy secretary, said last month in Arlington, Virginia. “Given their economy and everything else, they don’t want to be back in the soup, battling the U.S. on tariffs.” So, we will see. Global crop competition looks likely to be intense this year, so USDA’s outlook may well face increasing pressure as the season advances. These are trends producers also should watch very closely as they are tested across the season given the political prominence of the export commitments involved, Washington Insider believes.
| Rural Advocate News | Friday March 6, 2020 |
USDA’s Perdue Optimistic On China Phase One Trade Deal Commitments Much of USDA Secretary Sonny Perdue’s testimony before the House Ag Committee on the rural economy focused, not surprisingly, on the U.S.-China phase-one agreement. Ag purchase commitments by China under the phase-one deal are a reason to be upbeat, Perdue told lawmakers, even given concerns about the impact coronavirus may have on China meeting them. “None of us obviously know what the impact is going to be,” he said of coronavirus, adding market fundamentals remain strong thanks to robust consumer demand and the new trade agreement. Perdue related that signals from China are that they “want to fulfill” their purchase commitments under the Phase One deal. On the purchase commitments themselves, he said, “We are going to trust but verify as we go along, and looking on a week-by-week, month-by-month basis of where they are in that regard.” Regarding soybeans, Perdue said, “We are hopeful, we are optimistic,” and he predicted China would begin to ramp up purchases from the U.S. “in late spring and summer,” as the market shifts from South American producers. USDA will be watching carefully to see whether that shift occurs, he added. Perdue also noted optimism on getting U.S. rice into China, pointing out that elimination of non-tariff barriers like the ones that have shut U.S. rice out of that market were an integral part of the phase-one deal.
| Rural Advocate News | Friday March 6, 2020 |
Perdue Downplays Odds For More Farmer Trade Aid USDA Secretary Sonny Perdue Wednesday maintained his stance that a third round of trade aid payments to farmers should not be needed. His view did not shift even as lawmakers like House Ag Committee Ranking Member Mike Conaway, R-Texas, said a third round of Market Facilitation Program (MFP) payments would be “vital” for agriculture. Perdue warned lawmakers that the MFP efforts were aid payments, not price support or safety net payments. Perdue told reporters after the hearing that he put odds at 10% – one in ten – for a third round of payments. But he acknowledged that if directed to make the payments, USDA would provide them even as he insisted repeatedly that President Donald Trump’s tweet on the possibility of another round of trade aid started with the word “if,” meaning the payments were not guaranteed to be coming. Some say the reason Perdue is pushing back on the aid effort is that a third round of payments would signal that China would not be living up to terms of the phase-one agreement between the two sides.
| Rural Advocate News | Friday March 6, 2020 |
Friday Watch List Markets Friday's early attention will be on the U.S. unemployment report and February nonfarm payrolls, due out at 7:30 a.m. CST. The U.S. trade deficit will also be updated, allowing USDA to release January export data for specific ag products later Friday morning. South American weather remains of interest and coronavirus concerns are still drawing attention. Weather Dry conditions will dominate the crop area weather scene Friday. Precipitation will be confined to light snow the extreme eastern Midwest. Temperatures will be warm for the season in northern and central areas, allowing for snow melt.
| Rural Advocate News | Thursday March 5, 2020 |
Vietnam to Buy $3 Billion in U.S. Farm Products Vietnam is committing to buy $3 billion in U.S. farm goods to shrink the soaring trade surplus it has with America. Bloomberg says the Asian nation is looking to appease the Trump administration, which isn’t happy about the deficit. Vietnam is also looking to satisfy the complaints of U.S. companies that face difficulties in accessing Vietnamese markets. A Vietnam Agriculture Ministry spokesman says they “see a lot of room to increase purchases from America, which will significantly help narrow our trade gap with the U.S.,” while also noting that the demand in Vietnam for American farm products is “very high.” Vietnamese companies signed a total of 18 agreements with American producers to buy about $3 billion in farm products over the next two or three years. The deal includes purchasing 100,000 cows, three million tons of wheat and barley worth about $800 million, fruit, and corn and soy animal feed. Vietnam’s exports to the U.S. totaled $61.3 billion in 2019, widening the trade gap to $47 billion, up from $34.8 billion the year before, according to Vietnamese customs data. The U.S. Census Bureau says last year’s trade deficit with Vietnam was $55.8 billion, up from $39.5 billion the year before. ********************************************************************************************** Texas A & M Analyzes Trade Aid Distribution Texas A & M University published its analysis of the Trump administration’s trade aid program. The study’s authors say, “There’s no denying that the trade aid package, especially the Market Facilitation Program, has had a significant impact on farm income in the U.S.” Across all of the Agricultural and Food Policy Center’s 63 representative crop farms, the two years of MFP payments in 2018 and 2019 protected $16.4 million in net worth from 2018-2020. Under baseline conditions without MFP, 35 of those 63 farms had a greater than 50 percent chance of ending 2020 with negative cash balances. With the MFP in place, the study says the number dropped to 34 percent. Some have argued that the second round of payments was biased toward Southern states. Most of the variability in county payment rates under MFP can be explained by the underlying damage assessments and the distribution of planted acres in the respective counties. The study authors say even though the highest county payment rates were mostly in counties with cotton production, almost 70 percent of the MFP payments went to producers in Midwestern states. “We find little validity to the argument of regional inequity,” the authors said in a statement. ********************************************************************************************** Perdue Talks Trade Aid Before House Ag Committee Ag Secretary Sonny Perdue testified before the House Ag Committee and trade aid was a big topic of discussion. Michael Conaway, Ranking Member from Texas, called for another round of Market Facilitation Program payments this year. “The first and second MFP Programs were as justified as they were critical to our farmers and ranchers,” Conaway says. “I strongly believe that unless something gives here soon, an announcement on MFP part three will be vital to the survival of our producers.” Conaway added that folks who are critical about the aid payments should talk to the secretary on how to go about improving the Market Facilitation Program. House Ag Committee Chair Collin Peterson of Minnesota fears that Donald Trump’s recent tweet signaling the possibility of more aid means the trade agreements aren’t going to pay off soon. Peterson says, “If it weren’t for the payments to farmers through the MFP, farm income would have been in the tank,” he says. “I hope the markets return to normal. However, the president’s comments don’t give me confidence that we’ll see tangible benefits from the new trade deals anytime soon.” Perdue has repeatedly said he believes exports will grow and another round of trade aid won’t be needed. ********************************************************************************************** Congressman says UK Trade Without Agriculture is a No-Go for Congress If the U.S. and U.K. were to strike a trade deal that doesn’t include opening up the U.K, market to more U.S. farm goods, that would be a no-go in Congress. Senate Finance Committee Chair Chuck Grassley’s comments are in direct opposition to London’s official negotiating objectives that were made public on Monday. Politico says those objectives included maintaining the U.K.’s strict food safety and animal welfare standards. If it sounds familiar, it should. Agriculture has long been the biggest sticking point in separate but stalled negotiations with the European Union. Trade officials are now aiming to establish a mini deal by March 18. The mini agreement could contain some agriculture concessions from Brussels, but Politico says it likely won’t kick the door open for U.S. meat products. The EU’s top trade official, Bernd (Burned) Lange, was recently in Washington, D.C., to talk to administration officials and lawmakers. Questioned by reporters about the possibility of the EU opening more of its market to U.S. farm goods and dropping their non-tariff barriers, Lange’s answer was, “On agriculture, everyone knows that this is not possible. ********************************************************************************************** Farmers Union Sets Policy Priorities The National Farmers Union says it’s looking for measures that will bring some certainty to the farm economy in 2020. The Hagstrom Report says the organization will emphasize bringing the question about agricultural certainty to presidential candidates. Newly elected NFU President Rob Larew spoke to reporters after their annual convention ended, saying, “The special orders the delegates passed to set priorities for 2020 reflected what an awful year 2019 was.” He says farmers were also hurt by “manmade challenges,” a veiled reference to President Donald Trump’s trade policies, as well as a “lack of action” on climate change. The National Farmers Union will also continue to focus on its long-term concerns about agribusiness concentration, as well as the dwindling competition among the businesses that supply farmers with their inputs and buy farmer products from them. Larew says it’s been difficult to get the attention of Washington, D.C. regarding these issues. However, rising concern about antitrust issues and anticompetitive behavior by tech companies could make easier to get D.C. to notice what’s going on with those same issues in agriculture. ********************************************************************************************** Oil State Senators Pushing Trump as Deadline Looms The oil industry and allies on Capitol Hill are pushing for the Trump Administration to defend its decision to exempt some oil refineries from blending requirements under the Renewable Fuels Standard. The administration faces a Monday deadline to request the full 10th Circuit Court of Appeals to rehear a decision that threatens to curtail the use of the waivers. Republicans from oil-patch states, including Ted Cruz of Texas and James Inhofe of Oklahoma, have warned the administration and the Environmental Protection Agency that the decision will have consequences if it’s implemented around the nation. They say potential negative impacts could include strain on refineries, cause a rise in gasoline prices, and put jobs in jeopardy. Although federal law authorizes the EPA to exempt small refineries facing “economic hardship,” a January ruling by a three-judge panel in the 10th Circuit Court places limits on the agency’s ability to hand out large numbers of the waivers. If the decision stands, officials believe only two small refineries would still be eligible for hardship relief. Oil industry allies are hoping that the president will intervene and order a shift in the course of the discussions.
| Rural Advocate News | Thursday March 5, 2020 |
Washington Insider: Administration Virus Responses Following the Interest Rate Cut There is considerable uncertainty about the “next step” in coronavirus responses now, Bloomberg says. It attributes the market strength on Wednesday to Tuesday’s election results and the market’s extreme volatility. And, it calls the administration’s response to the virus outbreak and the damage it’s inflicting on global markets as “most notable for what hasn’t been done.” The report highlights the fact that the president has “so far balked at pursuing a major fiscal plan to counter the market turmoil stemming from the virus’s spread.” It says that the administration appears “content to wait out the crisis,” even though it could emerge as a potential threat to the president’s re-election – which has been “staked squarely to the performance of the American economy.” His clearest calls have been directed at the Federal Reserve. “More easing and cutting!” he tweeted Tuesday after the central bank announced an emergency 50 basis point rate cut. Yet Bloomberg says “concerns are growing in the business community” and industries may be looking for more than just monetary policy to cushion the blow. It cites David Kelly, chief global strategist at JPMorgan Asset Management, who said there’ll be calls on the government to act: “Even with this Fed action, there will likely be growing calls for fiscal action, particularly to provide direct support to businesses that may increasingly suffer from the public response to virus fears.” Airline chief executives are scheduled to meet with Vice President Mike Pence at the White House on Wednesday and the U.S. Chamber of Commerce held a news conference with leaders from travel and retail industry groups. “I think the government would be extremely smart if they were to stimulate travel,” Roger Dow, president and chief executive officer of the U.S. Travel Association, said at the Chamber event in Washington. Chamber president Tom Donohue said it would be good to support regional airlines, but added, “we don’t need any bailouts here.” The Fed on Tuesday cut interest rates outside of its normal cycle of meetings for the first time since the financial crisis of 2008. “The coronavirus poses evolving risks to economic activity,” the central bank said in a statement. The President and his advisers, though, “argue the economy isn’t under serious threat, that the government is capable of meeting challenges posed by the virus, and that an overreaction could make things worse.” “The country’s in great shape. The market’s in great shape. I’m focused on this,” the president said Tuesday after a visit to the National Institutes of Health in Maryland. Vice President Pence on Tuesday reiterated that view: “The priority is the health and safety of the American people. We believe the strength of the American economy will take care of itself.” Larry Kudlow, a key White House adviser, asked if he saw an economic crisis developing ahead, said on Tuesday: “I don’t. I’ll be honest.” Views on the stock market outlook remain decidedly mixed after the Fed cut fell flat. “The market was expecting a more coordinated and decisive response and not just one from the Fed,” said Solita Marcelli, deputy chief investment officer for the Americas at UBS Global Wealth Management. Administration spokesmen have said they’ll propose a tax cut later this year as part of a re-election platform and on Tuesday the president called House Democrats to propose a “very simple one year payroll tax cut.” The tweet was part of the administration’s efforts to check how receptive Capitol Hill is to a new tax cut package, one administration official said. However, Treasury Secretary Mnuchin later said the administration isn’t considering a payroll tax cut as part of its virus response. He added that the virus sell-off isn’t comparable to the financial crisis a decade ago. “We will get through this,” he told reporters Tuesday. Market swings are happening because “the markets struggle to assess new risks.” The administration has loosely discussed targeted measures, like supporting companies to avoid furloughing workers and guaranteeing sick pay to encourage the ill to stay home, a person familiar with the matter said. In addition, the President has pointed to other culprits for the slide in stocks. He first tried to talk up stocks as a buying opportunity several days ago, before blaming the media and Democrats for exaggerating the risk of the outbreak. He then pivoted back to his long-running complaint that interest rates are too high, publicly badgering the Fed for days before Tuesday’s emergency cut. For now, the President should keep focusing on stopping the spread of the virus itself, said Joel Griffith, a research fellow at the Heritage Foundation, a conservative policy institute. “In that respect I think the Trump administration is on the right course,” Griffith said. “We’ve got a fundamentally strong economy,” he said. “I’m very concerned that too many people are sensationalizing these events, and that might encourage counterproductive behaviors and needless economic consequences.” So, we will see. Much depends on the perception that the government actions are effective and the outbreak is being controlled—and officials may find themselves forced to consider more direct actions, health officials say. Clearly, these are controversial issues that producers should watch closely as the debates continues, Washington Insider believes.
| Rural Advocate News | Thursday March 5, 2020 |
Texas A&M Report Assesses MFP Efforts Economists at the Agricultural and Food Policy Center, Department of Agricultural Economics, Texas A&M Univesity, released a report on the Market Facilitation Program (MFP) and its impact. “While there was significant variability in county payment rates for MFP 2.0, most of that variability is easily explained by the underlying damage assessments and the distribution of planted acres in the respective counties,” the report said. “And, despite the fact that the highest county payment rates were predominantly in counties with cotton production, almost 70% of the assistance under MFP 2.0 went to Midwestern states,” the report said. “While we find little validity to the argument of regional inequity, there certainly were disparities between neighboring counties.” Further, the report said that the two MFP efforts thus far had a “greater than $41 billion impact on the broader rural economy.”
| Rural Advocate News | Thursday March 5, 2020 |
Focus Continues on RFS Waiver With a March 9 deadline to respond to the 10th Circuit Court ruling that three small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) for the 2016 compliance year were to be reviewed, pressure continues on EPA from both biofuel backers and refiner interests. Nine Republican senators sent a letter to EPA Tuesday calling on the agency follow through with their finalized the 2020 biofuel and 2021 biodiesel standards, which included EPA agreeing to adjust the Renewable Volume Obligations to account for 770 million gallons of SREs, even though they viewed that action is “imprudent and misguided.” Meanwhile, staunch biofuel backer Sen. Chuck Grassley, R-Iowa, told reporters Tuesday that there were discussions going on within the administration on the matter. He said he has urged the administration to “follow the law” and the court ruling and to not appeal that decision. Further, he called on the administration to give it “nationwide application.” In addition, 16 House members – including Senate Majority Leader Kevin McCarthy, R-Calif., and House Republican Conference Chair Liz Cheney, R-Wyo., – called on EPA to reconsider the court decision. Specifically, they called on EPA to “seek and extension and request an en banc hearing” so the full court can reconsider the matter. They also called on EPA to issue guidance that makes clear the ruling is not to be applied outside the 10th Circuit and that pending SREs for the 2019 compliance year within the 10th Circuit should be deferred and other SREs should be “rendered as soon as possible.” EPA Administrator Andrew Wheeler told members of a House Appropriations subcommittee Wednesday that he hoped to issue EPA’s response “shortly” but did not say what that decision will be. “We are still working on that with our attorneys at EPA as well as the attorneys at the Department of Justice,” he said. “The decision has to be made by next week, so we will be announcing something shortly.” He also expressed a hope that the announcement would “quell” the RIN market.
| Rural Advocate News | Thursday March 5, 2020 |
Thursday Watch List Markets Early Thursday morning financial reports include jobless claims, productivity and factory orders. We will also be watching for any more new Covid-19 virus updates, South American weather changes and export sales, along with any flash daily sales from the USDA, especially any news sales to China. Weather Snow and mixed precipitation will cross the northern Midwest Thursday, while the Southeast has continued moderate to heavy rain. Dry conditions will be in place elsewhere.
| Rural Advocate News | Wednesday March 4, 2020 |
Crop Insurance Guarantees Drop Ahead of Spring Planting Season Corn and soybean crop insurance guarantees have dropped, just in time for the spring planting season that’s right around the corner. A DTN report says that means farmers get less protection against low prices in their revenue policies this year. Guarantees are $3.88 a bushel for corn and $9.17 for soybeans. Those are down 12 and 37 cents respectively from last year. Officials come up with the spring guarantee by averaging the daily close of the December 2020 corn and the November 2020 soybean futures contracts through the month of February. It was poor timing as commodity prices dropped during the final week of February as global markets responded negatively to the spread of the coronavirus. “You’ve got a lower benchmark, a lower revenue guarantee, so you’ll have less coverage than you would have otherwise,” says Jim Mintert, director of the Center for Commercial Agriculture at Purdue University. “From a farmer’s perspective, it’s a huge downer that the market collapsed at the end of February rather than early March.” Depending on the volatility of some factors included in the price guarantee calculations, lower guarantees could lead to lower premiums. ********************************************************************************************** U.K. won’t Budge on Agriculture in Upcoming Negotiations with the U.S. The United Kingdom officially published its objectives for the upcoming trade negotiations with the U.S. The announcement included an uncompromising stand on agriculture and food standards, two big sticking points that have slowed momentum for talks getting underway. Politico says the U.K. won’t compromise on its “high environmental protection, animal welfare, and food standards,” along with the drug pricing provisions that are all central to the negotiations. U.S. agriculture and trade officials had hoped that the U.K. would loosen up some of their strictest requirements after officially leaving the European Union in January. The National Association of State Departments of Agriculture says it’s all for high standards for food safety and animal welfare and says U.S. producers already do so. NASDA CEO Barb Glenn says, “American farmers and ranchers produce the safest and highest-quality food that’s enjoyed by consumers across the world. We’re also doing it with fewer resources than ever.” U.S. Trade Representative Robert Lighthizer says the two biggest sticking points, which are agriculture and health care, shouldn’t stand in the way of reaching a deal in 2020. ********************************************************************************************** Protein Exports Piling up in U.S. Due to Coronavirus The spread of coronavirus is causing a glut of protein in U.S. cold-storage facilities. The Wall Street Journal says the protein backup includes pork, chicken, and beef intended for export to overseas markets that have been hit by the outbreak. The quantity of breasts, thigh meat, and drumsticks has grown by 12 percent through the first month of 2020, climbing to 957.5 million pounds, which is the highest level ever during January. The amount of pork in storage climbed 11 percent higher in January 2020 than it was at a year ago at the same time. Joe Sanderson of Sanderson Farms, Incorporated, says, “The cold storage facilities we deal with are all busting at the seams.” U.S. meatpackers have been counting on big orders coming in from China as trade tensions between the two countries eased. However, the coronavirus outbreak has put an unexpected dent in that hope. Huge numbers of people across China aren’t eating out, but rather are staying home, which in turn is slowing down meat consumption in China. That hurts the amount of demand for U.S. protein products. Government-mandated quarantines have created logistical snarls in transportation across China. “The ports are basically backed up,” says Tyson CEO Noel White. ********************************************************************************************** Ag Economy Barometer Hits All-Time High Producers’ perceptions of improved current conditions in the agricultural economy pushed the Purdue University/CME Group Ag Economy Barometer to a record high. The index rose to 168 in February, an increase of one point from January, and was 18 points higher than in December of 2019. This month’s increase came about largely because of the improvement in the Index of Current Conditions, which jumped 12 points higher in February to 154. The Index of Future Expectations dropped four points from January to finish at 175 in February. Producers who responded to the survey say they are more optimistic about current conditions on their farms and in U.S. agriculture. They retained most of the improvement in their future expectations we saw during January. The optimism is because of events like signing the U.S.-Mexico-Canada Agreement, as well as the Phase One trade deal with China. More than three-fourths of the respondents said signing those two agreements either “somewhat” or “completely” relieved their concerns about the effects of tariffs on their income. Just 17 percent of the respondents said, “not at all.” ********************************************************************************************** Administration will Defend CCC if Needed Retiring National Farmers Union President Roger Johnson said over the weekend that he’s worried about the future of the Commodity Credit Corporation. Because of the Trump Administration’s unprecedented use of the CCC to provide trade aid to farmers, Johnson worries that conservative and left-leaning critics of farm bills will work together during the next farm bill debate to end the CCC. The administration says it will defend the Commodity Credit Corporation if there are future attempts to abolish it because of the administration’s use of it to provide trade aid to farmers. The Hagstrom Report asked Ag Secretary Sonny Perdue about Johnson’s fears, to which Perdue replied, “I would hope that’s not the case.” He says the administration used the CCC for a valid reason. “We are hopeful it won’t lead to that,” Perdue said after speaking to NFU members. “We will be willing to defend that.” The Trump Administration provided $28 billion in trade aid for farmers over two years, with the president tweeting recently that they would provide another round of aid if it becomes necessary this year. While Perdue says farmers shouldn’t plan on another round of trade aid, he also said the president is committed to getting farmers through this period. ********************************************************************************************** Study Shows Meat Demand Will Remain Strong in 2020 The Food Industry Association and the Foundation for Meat and Poultry Research, along with the North American Meat Institute Foundation, combined to produce their 15th-annual in-depth study of meat and poultry from the consumer’s perspective. “The Power of Meat 2020” takes a deep dive into consumption trends, sales growth, and consumer demand. The study finds demand for meat is accelerating with $50.5 billion worth of sales in 2019. The survey looked into consumer interest in topics like production claims and sustainability. 49 percent of the respondents believe animal agriculture doesn’t have negative effects on the environment if done properly. However, the younger generation does believe it has negative impacts, which means consumer education is vital. Meat department sales are strong in both dollars and volume, driven by beef and chicken along with increased household spending. 83 percent of the shoppers who responded say they purchase specific cuts of meat and they are eating smaller portions. However, with total volume sales up slightly, they’re actually eating less meat on a more regular basis.
| Rural Advocate News | Wednesday March 4, 2020 |
Washington Insider: Anti-Virus Efforts and Impacts The Federal Reserve slashed interest rates by half a percentage point in an attempt to give the U.S. economy “a jolt” in the face of concerns about the outbreak. In response, the markets which had anticipated interventions as early as Monday, continued mixed and moved lower on Tuesday in spite of the rate cut – the first unscheduled, emergency cut since 2008, and the biggest one-time cut since then. The new benchmark interest rate is 1% to 1.25%. To nobody’s surprise, President Donald Trump, who has long advocated lower rates, cheered the cut but called it “too small” and said the Fed needed to cut further. The market is also expecting future cuts, as early as the April Fed meeting, according to the CME FedWatch Tool. Chances that rates will be lowered by another quarter-percentage point next month were at around 50% after the cut announced Tuesday morning. "With financial markets in turmoil and evidence growing that the virus is developing into a pandemic, the Fed's recent change of heart is entirely understandable," wrote Paul Ashworth, chief U.S. economist at Capital Economics. But the emergency cut also signals that the outlook for the U.S. economy might have been in more jeopardy than previously thought, the report said. The U.S. stock market struggled for direction as it balanced the economic stimulus of the rate cut with the statement the rate cut makes about the economy. On Monday, the Organization for Economic Cooperation and Development warned that global growth could be cut in half if the outbreak continues to spread. Many of the world's biggest companies, including Apple and Microsoft, have recently issued profit and sales warnings reflecting travel restrictions, factory closures and supply chain issues. Economists are also wondering how consumer behavior will change because of the outbreak, especially since consumers play such an important role in the U.S. economy. On Tuesday, Bloomberg released a more detailed description of coronavirus impacts on important upcoming economic indicators. The report used historical events as a starting point, from the SARS and MERS epidemics to natural disasters in the U.S. and Japan. In all cases, business conditions took months to return to normal, so even if the coronavirus is contained soon, it is likely to reverberate through data for some time. The report listed several “top indicators” to watch. These include jobless claims and notes that filings for unemployment are typically the first broad distress signal when the economy gets bruised. Claims have been hovering near a half-century low for the past year, but could rise as soon as Thursday’s weekly report, according to Gus Faucher, chief economist at PNC Financial Services Group. If businesses see sustained virus impacts, “they may start adjusting their payrolls now,” said Ryan Sweet, head of monetary policy research at Moody’s Analytics. At the same time, it’s unclear if any employment changes will be big enough to show up in claims already according to Bank of America Corp.’s Michelle Meyer. Several firms have canceled conferences in the U.S., Bloomberg said, and restrictions on travel into the country – particularly from China – are likely to affect the data. Chinese tourists are the fifth-largest group to visit the U.S., with about 3 million visiting in 2018, Bloomberg said. The report also focuses on international trade and notes that preliminary figures already show declines in shipments in January, though some recovery was expected after the phase one deal was signed early this year. But shortly after that signing, Chinese officials began to seek flexibility on their pledges as the virus threatened the Asian nation’s economy. On Monday, a gauge of U.S. manufacturers’ imports plummeted to the lowest level since 2009 while another index reflected supply-chain disruptions. Look for trade impacts to also show in capital-goods orders and shipments, as well as greater volatility of import and export prices. While American consumers aren't yet rattled by two months of coronavirus headlines, Bloomberg expects that coming surveys, including its Comfort Index due Thursday, will more fully reflect reactions to the stock market plunge. In addition, consumers now must confront more U.S. outbreaks and warnings from agencies such as the CDC. Bloomberg also warns that the March report on retail sales may be disappointing, especially since consumer spending accounts for the majority of the economy and has driven growth for several quarters amid weakness in business investment. In addition, the Federal Reserve data later this month will give a more detailed view of how the virus rippled through U.S. factories in February. With orders weakening and supply chains gummed up, companies may be pausing investment to gauge consumer demand and clarity on the coronavirus fallout for the broader economy. Will these downward expectations come true? We will see. Clearly, the economic impacts of the outbreak are expected to be negative and significant, but the major government financial institutions around the globe appear to be committed to take significant steps to provide economic supports. The key questions now include how severe the outbreak will turn out to be and how effective governments’ efforts to provide protections turn out to be, developments producers should watch closely as they proceed, Washington Insider believes.
| Rural Advocate News | Wednesday March 4, 2020 |
Perdue Mulling Change In Crop Insurance Guarantees USDA Secretary Sonny Perdue told National Farmers Union conference attendees to look at markets to determine 2020 plantings, but added he was mulling adjusting crop insurance rates. Perdue also indicated farmers should not count on another round of trade aid payments even as President Donald Trump tweeted one would be offered if recent trade agreements with China, Japan and the U.S.-Mexico-Canada Agreement (USMCA) are not fully implemented. Perdue said he is looking at crop insurance guarantees that dropped for 2020 compared with 2019. “I am not sure whether we legally have the flexibility to adjust those or not, but that is one of the things we are looking at right now,” Perdue told reporters Monday in Georgia. “As prices have gone down the safety net has gone down as well,” he said. “That’s a serious consideration that we need to look at.” The 2020 corn crop insurance price is $3.88, down three percent from last year, according to the American Farm Bureau Federation. The soybean price of $9.17 per bushel is down nearly four percent from last year and the cotton price is 68 cents per pound, down seven percent from 2019.
| Rural Advocate News | Wednesday March 4, 2020 |
Lighthizer Insists Poultry Issue Will Not Thwart US-UK Trade Deal The use of chemical washes on U.S. poultry and Britain’s National Health Service (NHS) will not be issues that will prevent the U.S. and UK from reaching a trade deal, U.S. Trade Representative Robert Lighthizer said in the UK Monday, according to news reports. “I do not think either of those are going to be what sinks us,” Lighthizer said, adding he belief the two sides can work things out on those issues. Talks are expected to start in the next few weeks. Lighthizer, speaking at the Oxford Union, said he believes the poultry issue “Is kind of a false problem.” He believes "Science-based standards, and then consumer preference – that is what is going to sort out this problem, and the United States and the UK are not going to go separate ways based on chicken.” On the phase-one agreement with China, Lighthizer said there was no reason why China will not meet their commitments spelled out in the deal provided the coronavirus does not provided a long-term negative impact to economic growth.
| Rural Advocate News | Wednesday March 4, 2020 |
Wednesday Watch List Markets Wednesday's first report shows U.S. private sector employment from ADP at 7:15 a.m. CST, followed by weekly energy inventories from the U.S. Energy Department at 9:30 a.m. The Federal Reserve's Beige Book is due out at 1 p.m. CST. Traders remain interested in South American weather, any trade news and increasing coronavirus numbers. Weather Moderate to heavy rain is in store from central Texas eastward to Georgia Wednesday. The rain will produce saturated soils and bring on a threat of flooding along with severe storm potential. Other crop areas will be dry, with strong winds leading to high fire risk in the central Plains and southern Texas.
| Rural Advocate News | Tuesday March 3, 2020 |
NFU President Johnson Retires, Larew Elected National Farmers Union President Roger Johnson this week delivered his final address to the organization before retirement and the election of a new leader. After 11 years, Johnson announced his plans to retire in 2020. Delegates Monday elected Rob Larew to succeed Johnson as the organization’s president. Patty Edelburg, a Wisconsin dairy farmer, was reelected to serve a second term as vice president. Larew and Edelburg’s two-year terms begin today and will conclude at NFU’s 120th Anniversary Convention in 2022, at which point both may seek reelection Larew says, “I am so honored that the farmers and ranchers, rural Americans, and advocates who make National Farmers Union all that it is have entrusted me with this great responsibility.” Larew, who was raised on a West Virginia dairy farm, served as NFU's Senior Vice President of Public Policy and Communications since fall 2016. Prior to his employment with NFU, Larew served more than 22 years in Congress and the U.S. Department of Agriculture. ************************************************************************************* USTR: Trump Trade Agenda Creating “Blue Collar Boom” U.S. Trade Representative Robert Lighthizer says the Trump administration’s trade agenda is resulting in a “blue-collar boom.” In the Trade Policy Agenda and Annual Report delivered to Congress Friday, Lighthizer highlighted the trade accomplishments over the past year, including the signing of trade agreements with Mexico, Canada, China and Japan, as well as enforcement actions and efforts to bring change to the World Trade Organization. Going forward, the report states that President Donald Trump will “continue to rebalance America’s trade relationships” to benefit American workers, aggressively enforce U.S. trade laws, and take prompt action in response to unfair trade practices by other nations. Lighthizer says President Trump seeks new trade agreements with the United Kingdom, the European Union and Kenya, which would be the United States’ first free trade agreement in sub-Saharan Africa. The 2020 trade agenda also includes the enforcement of commitments by trading partners in trade agreements, including the USMCA, the China Phase One Agreement and WTO agreements. ************************************************************************************* China Calling ASF Vaccine Effective in Lab Test A research institute in China says it’s African swine fever vaccine is proving to be safe and effective. China’s Harbin Veterinary Research Institute, overseen by the Chinese Academy of Agricultural Sciences, says the live vaccine with reduced virulence was created from a series of gene-deleted viruses using the country’s first African swine fever strain, according to Bloomberg News. The institute says the vaccine is “currently the most promising one for commercial production,” potentially providing prevention and control of African swine fever. Researchers in the United States earlier this year announced a separate vaccine that was 100 percent effective. However, development and availability to farmers are still years away. African swine fever is thought to have impacted 40 percent, or more, of China's hog herd. China is the world's largest pork consumer and producer. However, China is set to have a record number of pork imports this year, due to the virus. In February, Rabobank expected U.S. pork exports to remain strong because of African swine fever, and recent trade agreements. ************************************************************************************* USDA Announces Additional Disaster Assistance Signup The Department of Agriculture will open signup for disaster assistance on March 23 for producers to apply for eligible losses of drought and excess moisture. Agriculture Secretary Sonny Perdue announced the additional disaster assistance late last week. Through WHIP+, USDA is helping producers recover from losses related to 2018 and 2019 natural disasters. USDA is also entering into agreements with six sugar beet processing cooperatives to distribute $285 million to grower members of those cooperatives who experienced loss. Secretary Perdue says, "disaster events the past two years have been atypically widespread, relentless and unforgiving," adding "President Trump has the backs of our farmers, and we aim to support them as they recover." In June 2019, more than $3 billion was made available through a disaster relief package passed by Congress and signed by President Trump. In December 2019, Congress passed, and President Trump signed the Further Consolidated Appropriations Act of 2020 that provides an additional $1.5 billion for the continuation of disaster assistance program delivery. ************************************************************************************* Perdue Orders USDA Fleet Vehicles to Increase Biofuels Use Agriculture Secretary Sonny Perdue last week directed Department of Agriculture employees to acquire alternative fueled vehicles when replacing conventionally fueled vehicles. USDA owns and operates one of the largest civilian fleets in the Federal Government. Through the directive, USDA is moving to acquire E85- or biodiesel-capable vehicles that meet USDA mission requirements instead of those that take conventional gasoline. This will occur over time during the normal fleet renewal process. USDA currently has 37,000 vehicles and replaces approximately 3,000 every year. Additionally, USDA will make $100 million in grants available this year for the newly created Higher Blends Infrastructure Incentive Program. Through the program, biodiesel distribution facilities will be able to apply for grants to help install, retrofit or upgrade fuel storage and related infrastructure to sell ethanol and biodiesel. USDA plans to publish application deadlines and other program information in the Federal Register this spring. Secretary Perdue says both actions “underscore that USDA is putting our money where our mouth is when it comes to increased biofuels usage.” ************************************************************************************* Mid-Mississippi Delta River Region Potentially a “Next California” A report from the World Wildlife Fund details how the Mid-Mississippi Delta River Region could become the “Next California” of fruit and vegetable production because of climate change. The report, The Next California, Phase 1: Investigating Potential in the Mid-Mississippi Delta River Region, explores the viability of shifting some fruit and vegetable production to an area of the U.S. currently dominated by row crops. Findings show that while California will continue to be a key agricultural state, the mid-Mississippi Delta River region is well-positioned to supplement fruit and vegetable production, contributing to a more distributed and climate-resilient food system. Jason Clay, senior vice president of markets at the World Wildlife Fund, says, “A hotter and drier California, with more extreme weather events, is bad news for farmers,” adding, “We need a plan to mitigate risk and take some pressure off the state and its environment.” The report identifies several advantages to selecting the Delta region as a pilot for more intensive fruit and vegetable production. These include a long history of farming, the low cost of land and labor, fertile soils, abundant rain and surface water and economic benefits.
| Rural Advocate News | Tuesday March 3, 2020 |
Washington Insider: Fighting the Coronavirus The Hill is reporting this week that lawmakers are racing to clinch a deal on emergency funding to combat the coronavirus as more cases, and the first deaths within the United States were reported over the weekend. The Dow showed signs of life Monday although analysts said that reflected expectations regarding Fed moves to cut interest rates, rather than an end to the threat. Now, the House is expected to vote on billions in funding this week, though negotiators have not yet finalized a deal. An important step that Congress must take is to ensure the government has the resources needed to “combat this deadly virus and keep Americans safe,” The Hill said. To that end, House appropriators are working to advance a strong emergency funding supplemental package that “fully addresses the scale and seriousness of this public health crisis, which we hope to bring to the Floor next week,” Speaker Nancy Pelosi, D-Calif., said in a “Dear Colleague” letter over the weekend. The administration requested $2.5 billion in funding, half of which would have been new funding, while the balance would have come from existing health programs, including $535 million from fighting Ebola. They’re likely to get double or triple that request, The Hill said. Negotiators are looking at providing between $6 billion and $8 billion, the report said. That’s below the $8.5 billion requested by Senate Minority Leader Charles Schumer, D-N.Y., but significantly more than the White House’s request — which even some Republicans characterized as too low. Pelosi added in her statement that the funding package had to be comprised of new funding and that there must be guardrails to ensure President Trump "cannot use these new funds for anything other than fighting coronavirus and infectious diseases." Lawmakers are hoping to have the package ready to move this week and face a tight timeline if they are going to get the bill passed by the House, Senate and to Trump’s desk before leaving for a weeklong recess on March 13. "I hope they can work expeditiously so the full Senate would be able to take up the legislation within the next two weeks — and that as we move forward through this challenge, this body can put reflexive partisanship aside and uphold the spirit of cooperation and collaboration this will require," Senate Majority Leader Mitch McConnell, R-Ky., said last week. The press also is emphasizing the value of public information in the fight against the virus. For example, the Washington Post notes that the disease has now been detected in 40 countries—and that as the outbreak expands, most countries, including the United States “will have to switch from containment to mitigation as a priority.” The point of mitigation, as opposed to containment, is to reduce the effect of the outbreak rather than eliminating the virus. Protective public health tactics could include reducing mass gatherings, dismissing students from schools or closing them altogether for a while, and implementing “social distancing” measures — public health interventions with consequences for the livelihood and the well-being of the population. Past epidemics prove fighting coronavirus with travel bans is a mistake, the Post thinks. And, while the so-called nonpharmaceutical interventions — protective public health measures that do not involve drugs or vaccines — can be helpful, effective and long-term control of this virus will probably also require mass vaccination. For the current outbreak, at least 39 vaccine development programs are already underway, the Post says. “This early progress is due to advances in technology since previous large outbreaks.” For example, the technology for identifying vaccine targets on the virus is more advanced than it was when SARS broke out. Because of genetic similarities between COVID-19 and SARS, as well as advances in technologies for decoding viral genetic information, scientists were able to quickly create a genetic sequence useful for developing vaccines. Similarly, technological innovations such as using “messenger” RNA as a vaccine has sped up initial development of vaccines—but production likely is still at least a year away. Still, the biggest barrier to vaccine availability is not biological. It is the steps after a biological product is developed and tested in animals. Conducting human trials is an essential step in determining the efficacy and safety of vaccines before deploying them in the general population. The COVID-19 outbreak already is a multi-country emergency, the Post says. CDC’s characterization that it is inevitable that the virus will spread widely in the United States may very well be true. But the impact depends on how the nation mobilizes its response. So, we will see. Clearly the problem is far-reaching and will affect many aspects of our economic and social lives. Each step of the response will be critical and should be watched closely as the process evolves, Washington Insider believes.
| Rural Advocate News | Tuesday March 3, 2020 |
USDA’s Perdue Signals Big Downturn In RFS Exemptions While EPA Administrator Andrew Wheeler told lawmakers last week he had no announcement to make on whether the agency would dramatically scale back its use of small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS), USDA Secretary Sonny Perdue said at the Commodity Classic gathering the use of SREs would be declining. “I think you see will those waivers significantly reduced,” Perdue said. Wheeler will appear on the Hill this week and will be pressed again on the topic and perhaps even on his guidance that something would be announced by the agency “soon.”
| Rural Advocate News | Tuesday March 3, 2020 |
UK Signals No Give On Food Standards In Negotiating Objectives With US The UK said it will not temper its environmental regulations nor would it lower its food standards as part of its negotiations on a trade deal with the U.S., according to negotiating objectives it released today. “The UK's independent food regulators will continue to ensure that all food imports into the UK comply with those high standards,” the objectives said. “Without exception, imports into the UK will meet our stringent food safety standards - all food imports into the UK must be safe and this will not change in any future agreement." Most in the U.S. have insisted that ag issues have to be addressed in negotiations with the UK, but the negotiating objectives indicate that will be a tall ask on the part of the U.S.
| Rural Advocate News | Tuesday March 3, 2020 |
Tuesday Watch List Markets There are no significant reports on Tuesday's docket, but plenty of other factors to keep traders' attention. South American forecasts have new interest with chances for drier weather this week in southern Brazil and Argentina. March deliveries will be noticed as corn, soybeans and Chicago wheat have not seen any yet. And traders will continue to keep an eye out for any trade news. Weather Moderate to heavy rain is in store for the southeastern U.S. Tuesday, along with potential flooding. Other crop areas will be dry except for light snow crossing the northern areas
| Rural Advocate News | Monday March 2, 2020 |
Oil Industry Pushing Back against Biofuel Decision A recent federal appeals court ruling last month tightened eligibility for ethanol blending waivers. As a result, the Trump administration is on track to stop approving so many waivers it had been handing out to oil refineries. It’s a major win for corn growers and biofuel producers. However, refiners and oil-state lawmakers are asking the president to step into the situation. Thirteen Republican senators sent the president a letter warning that the 10th Circuit Court decision if it’s applied nationally, would “jeopardize nearly all small refineries” and raise gasoline prices for U.S. drivers. They are asking Trump to file a petition for a rehearing and potentially seek a Supreme Court review of the decision. Politico says the White House has long been struggling to strike a balance between oil and agriculture in their standoff over the Renewable Fuels Standard. The January court decision made it more difficult for the president to find a compromise on an issue that has angered farmers more than any other administration policy, including the trade war. Environmental Protection Agency Administrator Andrew Wheeler says the agency will be issuing guidance on the blending waivers within “days, not weeks.” ********************************************************************************************** Chicken Sandwiches Helping Get Through Poultry Glut in the U.S. U.S. chicken companies are running production at a high rate right now, sparking a glut of product on the market and sending prices for products like breast meat to record lows. Yahoo Finance says despite that, the industry might see a bright 2020 ahead. That’s thanks in part to the chicken sandwich craze that seems to be sweeping America’s fast-food restaurants. Joe Sanderson Jr. is CEO of Sanderson Farms, Incorporated. He says the “sandwich wars” among fast-food chains could end up being an unofficial “bailout” that the oversupplied U.S. poultry industry needs. As an example, Popeyes quickly ran out of its new chicken sandwiches when they were first launched nationwide last August. Even though the overall poultry industry faces a glut, supplies of the smaller chickens, between four and five pounds, is running short. Poultry buyers are turning to processors like Sanderson Farms to take larger portions and cut them down to sandwich size. U.S. chicken farmers continue to produce more meat. Egg sets and chick placements are trending four percent higher than last year. The USDA the poultry industry set to produce a record 45.3 billion pounds of broiler meat this year. ********************************************************************************************** EU Continues to Say No to Ag in Trade Talks with the U.S. A top European Union trade official says Europe seriously wants a trade agreement with the United States. However, EU political leaders still won’t negotiate on significant agricultural policies. Bernd (Burned) Lange is chair of the European Parliament’s Committee on International Trade. He was in Washington, D.C. last week to talk to lawmakers and Trump administration officials. Reporters continued to question him about the U.S. demands that the EU reduce its ag tariff and non-tariff barriers to U.S. farm commodities. “On agriculture, everyone knows that this is not possible,” Lange says. Lange was in the nation’s capital to try and kickstart the stalled trade talks. While visiting with staff in Senator Chuck Grassley’s office, the staff members told Lange that “agriculture should be in any deal.” Lange’s response was a simple one; “it’s not possible.” An Agri-Pulse report says that is the opposite of what EU Trade Commissioner Phil Hogan had said in a recent visit to the U.S. Hogan had told reporters that Europe was considering taking a more flexible approach on its refusal to include agriculture in trade talks with the U.S. The EU will soon be busy as formal trade talks with the United Kingdom are set to begin on today (Monday). ********************************************************************************************** Farm Bureau Takes Lead on Mental Health Campaign Bayer and the American Farm Bureau announced that the “Farm State of Mind” campaign, initiated by Bayer, will be transferring over to the Farm Bureau. The campaign is designed to help take away some of the stigmas on the topic of mental health in rural communities, as well as provide relevant information to farm families on this important topic. Farm Bureau is planning to combine the Farm State of Mind assets with those of its ongoing Rural Resilience campaign, expanding the reach and effectiveness of its rural mental health initiatives. Lisa Safarian, President of Bayer Crop Science, says, “We quickly realized this issue is much bigger than any one single company and no group is better positioned than Farm Bureau to take the lead on this campaign to help realize its full potential.” Bayer says transitioning this program to an organization as trusted as Farm Bureau will greatly help to expand its reach and effectiveness among farmers. “As a third-generation farmer, I’m familiar with the stress of farm life,” says Farm Bureau President Zippy Duvall, “and have heard a lot of heartbreaking stories as I travel around the country.” Complicating the issue is the fact that many farmers are reluctant to talk about the effect of stress or seek help in dealing with it. “We’re excited to be able to expand our impact by growing this campaign to connect even more farmers and ranchers with the resources they need,” Duvall adds. ********************************************************************************************** New Stewardship Network Celebrates Conservation in Agriculture The National Corn Growers Association and the Environmental Defense Fund launched the Success in Stewardship Network at the Commodity Classic. The network will celebrate and accelerate the use of agricultural conservation practices on U.S. corn farms. The network will showcase success stories from the many farmers and state-level programs putting stewardship into practice to build an ever-growing network of corn farmers who are also conservation leaders. The NCGA and the EDG recognized the Minnesota Corn Innovation Grant Program, as well as the Illinois Corn Precision Conservation Management Program, for their farmer-supported efforts to deliver clean water, healthy soils, and farm profitability. Callie Eideberg, director of agricultural policy and special projects with EDF, says, “The Success in Stewardship Network will break down the notion that conservation is only for an elite group of farmers. Practices that protect the land and water and increase climate resilience are more prevalent than many people think.” Both organizations say the new network will bring farmers and agricultural organizations together to continue making conservation more commonplace.” ********************************************************************************************** USDA Offering New Hurricane Insurance Endorsement for Crop Year 2020 The USDA’s Risk Management Agency announced it will be offering a new crop insurance endorsement, called the Hurricane Insurance Protection – Wind Index, during 2020. The new endorsement covers a portion of the deductible of the underlying crop insurance policy when a county, or adjacent county, is within the area of sustained hurricane-force winds. The coverage provided by HIP-WI can be combined with the Supplemental Coverage Option and the Stacked Income Protection Plan when acreage is also insured by a companion policy. “Hurricane season will be upon us before we know it,” says RMA Administrator Martin Barbre. “This new hurricane endorsement provides some added protection for producers along the Gulf and east coasts, as well as Hawaii. The past couple of hurricane seasons have taught us that more coverage is needed in these areas and that prompt payment for losses is important, not only for the impacted producers but also for these rural communities.” The new endorsement provides coverage for 70 different crops and is available in counties in the vicinity of the Gulf of Mexico and the Atlantic, as well as Hawaii. The deadline to purchase HIP-WI coverage for the 2020 crop year is April 30.
| Rural Advocate News | Monday March 2, 2020 |
Washington Insider: Central Bankers Struggle to Find Tools Most of the media are totally focused on the coronavirus and its implications early and late which includes the potential political impacts. Naturally, these are as polarized as everything else, or more. For example, the Washington Post said that as “markets continued their dizzying downward spiral and other countries took strong measures to fight the outbreak the administration appeared to downplay the increasingly visible impacts and their potential for the future,” part of which Vice President Mike Pence blamed on “politics.” He said that “Politics is fine, but when it comes time to talk about pandemics you’ve got to get away from politics.” Critics responded, “If only he could heed his own advice.” The Post said that while President Donald Trump is calling on the Fed to cut interest rates “Fed officials and their global counterparts are staring down an economic threat unlike any they have ever faced.” Markets are looking to them to contain the fallout from a rapidly spreading virus “with limited ammunition and tools ill-suited to deal with broken supply chains and quarantined consumers.” The New York Times reminded that “rates are historically low across advanced economies,” and it is unclear whether monetary policy is the ammunition needed to fight this particular type of economic threat, at least at the outset. Policymakers cut rates to ward off an economic downturn — or contain one that has already arrived—by making it cheaper to borrow money to prod the economy. “We would rather have a vaccine than a rate cut and fully recognize that monetary policy is not optimized for addressing this type of shock,” Krishna Guha and Ernie Tedeschi of Evercore wrote to clients. America’s economy is particularly susceptible to the threat posed by coronavirus, given that growth has largely been powered by consumer spending. Long-lasting quarantines could keep shoppers at home while fear of infection could prevent even those not quarantined from venturing out—shocks that might be particularly dire for small businesses that do not have big cash cushions: A few weeks of depressed sales can push them to the edge of ruin. And if companies close or downsize and jobs are lost, consumer spending would suffer even more. Despite those threats, economists say that pre-emptive interest rate cuts might still be of some help. Cuts — or even hints that they are coming — can help calm markets and keep credit flowing. If it seems that the coronavirus is going to have longer-lasting effects on consumer and business spending, lower borrowing costs can offer some reprieve by stoking demand. The U.S. central bank is in a better starting position than many of its peers, the Times says. It managed to lift rates amid a stronger recovery and borrowing costs are now set in a range of 1.5% to 1.75%. But it too has far less room to cut than before the Great Recession when it slashed rates to near zero from above 5%. Because no one knows how bad the epidemic will get, it is unclear how much stimulus will be needed — which is part of the reason this is such uncertain territory for the Fed and other central banks. If contained quickly, the coronavirus could deal a short-term blow to growth and economies could quickly snap back. But the chances of a painful slump are rising as the virus spreads. Forecasters have cut economic growth estimates in the United States and globally though the projections vary widely as economists struggle to predict the virus’s trajectory and the resulting damage. Bank of America researchers reduced their forecast for 2020 growth in the United States by 0.1% on Friday, to 1.6% overall. Other vulnerabilities also exist. Corporations owed $13.5 trillion to bond holders at the end of 2019, an all-time high. Half of the corporate bonds issued last year were rated just one notch above junk. If debt-laden companies fail to keep up with payments amid supply chain shutdowns and work closings, they could default, handing big losses to the investors backing the loans and rippling through the financial system in unexpected ways. Still, the Fed has other tools at its disposal should the financial system run into trouble: It can keep dollars flowing internationally and provide loans to banks through the so-called discount window, which can help to relieve any short-term shortage of funds among commercial banks. Whether fiscal policy can be more effective depends on how the economy reacts. For now, the best thing policymakers can do is stem the flow of infection with an effective public health response, economists say. But if that fails, fiscal policy could be more adept at targeting assistance to the places that need it—helping vulnerable businesses by issuing low-cost loans or other types of financing or directing funds to communities struggling in the wake of the virus. Trump said on Saturday that there were no plans for an immediate fiscal response. So, we will see. Clearly, there are several important steps government and bank officials need to take to deal with the current crisis — which continues to be a significant threat across the economy. Certainly, these difficult decisions and actions should be watched closely by producers as they evolve, Washington Insider believes.
| Rural Advocate News | Monday March 2, 2020 |
USDA Announces Hurricane Crop Insurance Option A new crop insurance endorsement, Hurricane Insurance Protection – Wind Index (HIP-WI), has been announced by USDA’s Risk Management Agency (RMA). HIP-WI covers a portion of the deductible of the underlying crop insurance policy when a county, or county adjacent, is within the area of sustained hurricane-force winds. HIP-WI provides coverage for 70 different crops and is available in counties in the vicinity of the Gulf of Mexico and the Atlantic, as well as Hawaii. The coverage provided by HIP-WI can be combined with the Supplemental Coverage Option (SCO) and the Stacked Income Protection Plan (STAX) when acreage is also insured by a companion policy.
| Rural Advocate News | Monday March 2, 2020 |
USDA Sets Signup for Additional WHIP+ Benefits USDA’s Farm Service Agency (FSA) will open signup on March 23 for producers to apply for eligible losses of drought (D3 or above) and excess moisture under the Wildfire and Hurricane Indemnity Program Plus (WHIP+). USDA also said it was entering into agreements with six sugar beet processing cooperatives to distribute $285 million to grower members of those cooperatives who experienced loss. In June 2019, more than $3 billion was made available through a disaster relief package passed by Congress. The Appropriations bill expands WHIP+ to include assistance for crop quality loss. FSA is gathering data and input from producers and stakeholders regarding the extent and types of quality loss nationwide. To be eligible for WHIP+, producers must have suffered losses of certain crops, trees, bushes, or vines in counties with a Presidential Emergency Disaster Declaration or a Secretarial Disaster Designation (primary counties only) for the following named natural disaster events: hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms, wildfires, and now excessive moisture that occurred in 2018 or 2019. Also, losses located in a county not designated by the Secretary as a primary county may be eligible if the producer provides documentation showing that the loss was due to a qualifying natural disaster event.
| Rural Advocate News | Monday March 2, 2020 |
Monday Watch List Markets While Monday economic reports feature both manufacturing indices and construction spending, which could be key, we will be watching for any new developments regarding coronavirus, and any news regarding China's implementation of duty--free import licenses for U.S. ag products. South American weather will also be important to watch Weather Light to moderate rain is in store for the eastern Midwest and Delta Monday, keeping soils wet and delaying field work. We'll also see light snow in the central Plains, with dry conditions elsewhere. Temperatures will be seasonal to above normal, offering snowpack melting in northern areas.
| Rural Advocate News | Friday February 28, 2020 |
EPA Set to Back Down on Ethanol Waivers The Environmental Protection Agency is backing down on its extensive use of blending exemptions for smaller oil refiners. A Reuters report says the decision comes after last month’s 10th Circuit Court of Appeals ruling that vacated three existing waivers and set stricter requirements for exempting refineries from their obligations under the Renewable Fuels Standard. It’s been well-documented that the EPA drastically ramped up its use of refinery waivers under President Donald Trump. That sparked a fierce backlash from farmers who have largely supported the president despite policies like trade tariffs that have hit the U.S. agricultural sector hard. The White House has been struggling to find a compromise between oil and agriculture, two of the bigger pieces of Trump’s political base as he looks toward possible re-election. The court decision from January found that only small oil refineries that had maintained blending exemptions continuously since 2011 were eligible to apply for extended waivers. Oil and biofuel industry estimates both say that could preclude all but three oil refineries from obtaining exemptions. The EPA is currently reviewing 23 petitions for blending waivers and most are expected to be rejected. ********************************************************************************************** Committee Hearing Highlights Differences over Trade Policies and Aid At a House Ways and Means Committee hearing, the split between farmers and lawmakers over the trade policies of President Trump was a big topic of conversation. Another big topic of discussion included the impact of the Phase One trade deal with China. An Agri-Pulse report describes Republicans on the committee as playing down the overall impact of the trade war and saying the trade agreement with China was a “major success.” Democrats pointed out that tariffs are continuing to restrict trade. Both sides of the political aisle said Trump’s duties on imports and the resulting retaliatory tariffs hurt the U.S. agricultural sector. Some people at the hearing were optimistic that China would follow through on its promise to purchase $80 billion worth of farm products over the next two years. Others weren’t convinced and said billions more in government assistance may be needed to further blunt the damage from a continuing loss of overseas exports. Minnesota farmer Tim DuFault was one of the witnesses at the committee hearing and said, “As far as the Phase One deal goes, the purchases that haven’t yet materialized are a promise, while the tariffs are for real. Commodity prices, which plummeted when the trade war began, have actually fallen further after the U.S. and China signed the phase one deal.” ********************************************************************************************** Hemp Growers Get Good News The Drug Enforcement Agency says it won’t require all labs testing the THC levels of U.S. hemp to be certified by the agency during the 2020 crop year. Politico says that offers producers a little more flexibility because it will alleviate potential bottlenecks at the more limited number of labs that have the certification. Greg Ibach (EYE-baw), the Undersecretary for Marketing and Regulatory Programs, first announced the change during remarks given to the National Association of State Departments of Agriculture. The department is also planning to give states more options for disposing of “hot hemp,” which are plants with THC levels above 0.3 percent, which is the legal threshold. When the department first released its initial regulatory framework for hemp production, farmers and state regulators pointed out that some states don’t have a single lab certified by the DEA, such as Alabama. That would greatly slow down testing, which is required to happen during a 15-day window before harvest. Delays would eventually threaten the market viability of the crop. ********************************************************************************************** Consumers will Stop Buying Pork if AFS Hits the U.S. Bill Even, CEO of the National Pork Board, says the results of consumer research have amplified the need to promote safety in the event of a large foreign animal disease outbreak. Swine Web Dot Com says at the onset of the African Swine Fever crisis in 2018, the checkoff polled consumers about their perceptions of the safety of pork. After giving consumers more information about how it’s a viral disease in pigs, not humans, and telling them it’s not a public health threat, more than half of the consumers who responded to the checkoff survey say they would stop eating pork if ASF was found in the U.S. Consumers wondered in the event of an outbreak if the public “should be eating pork.” Others asked if it should still be for sale in the store in the event of an ASF outbreak. Hispanic respondents, who tend to eat more pork than other consumer demographics, had even more concern about the ability to have pork on the shelves that’s safe for consumers to eat. Even says the checkoff, along with partners like USDA, has developed video resources for consumers that are available in case there is a disease outbreak. “Rest assured, there will be millions of dollars at the ready should we have an event occur around a foreign animal disease,” Even says. ********************************************************************************************** Fertilizer Price Volatility Began in 2002 Fertilizers are important for the nutrients they provide in the production of crops. However, their prices have been more volatile in the last six years than ever before. From 1960 through 2002, both fertilizer and crop prices received by farmers increased in tandem at a fairly modest rate. Between 2002 and 2008, annual fertilizer prices paid by farmers increased rapidly, generally at a much faster rate than the prices farmers were paid for their crops. Fertilizer prices also became more volatile over those six years. Fertilizer price increases through 2008 were largely driven by high energy prices and the record costs of natural gas, which is a basic input in producing nitrogen. In response to record fertilizer prices in 2008, farmers reduced their use of fertilizers, contributing to a decline of 18 percent in fertilizer prices through 2010. Fertilizer prices recovered through 2012, driven by strong domestic demand for plant nutrients due to high crop prices, before declining afterward. Since June of 2017, fertilizer prices and crop prices received have both trended upwards. ********************************************************************************************** Maine Representative Introduces the Ag Resilience Act Maine Representative Chellie Pingree introduced what she calls the “Ag Resilience Act,” which she says would promote “farmer-driven climate solutions.” The bill envisions reaching a net-zero greenhouse gas emissions in U.S. agriculture by the year 2040. “Farming has always been a risky business, but unpredictable, extreme weather patterns are creating immense challenges that threaten our nation’s food production and jeopardize the livelihood of American farmers,” Pingree says. The Maine Rep has been an organic farmer for more than 40 years. “Last year, farmers were unable to plant 19.6 million acres of crops due to record-breaking rainfall,” she says. “We must be proactive to keep farmers on the land and in business.” The bill contains provisions for increasing agricultural research, improving soil health, and protecting farmland by increasing funding for the Local Agriculture Market Program and the Agriculture Conservation Easement Program. The bill was endorsed by the National Farmers Union, the American Farmland Trust, the National Sustainable Agriculture Coalition, and the Union of Concerned Scientists.
| Rural Advocate News | Friday February 28, 2020 |
Washington Insider: The Digital Tax Problem While everybody seems to be aware of the viral threat these days, not all media are focused there exclusively. Bloomberg says a possible fight over the right to tax some of the world’s most profitable companies could become a multifront trade war – no matter who the next president is. In fact, either party might be tempted to continue to pursue “a policy of retaliation” against foreigners who impose new taxes on U.S. tech companies, the report says. A tit-for-tat trade fight already is building with France, which passed a 3% tax on large tech companies that went into effect at the start of 2019. The U.S. responded with the threat of tariffs on $2.4 billion worth of French cheese, sparkling wine and makeup, prompting the EU to consider tariffs on U.S. goods. All sides have now agreed to a tax cease-fire until the end of the year to see if a broader global agreement can be worked out. “Democrats have been as opposed to the digital services taxes as Republicans,” Brian Jenn, a former Treasury official said. “While very few Democrats are tariff fans, it looks like the tariff approach at least bought a temporary victory in the case of France.” The U.S., along with more than 130 countries, is currently negotiating at the OECD about a new international tax system that would redefine which countries can tax which corporate profits. A revamped global tax code could apply not just to tech companies but also to other multinational firms that have customers in countries where they don’t currently record profits. Bloomberg says that negotiators need to reach an agreement this year before several countries--including France, Canada and Italy--plan to move forward with their own taxes on tech giants. A retaliatory tariff fight with the UK could begin even sooner since its version of the tax is set to go into effect in April and U.S. officials are considering responding with tariffs on car exports. That could be a “worst case” scenario for companies such as Amazon.com Inc. that could end up paying taxes to several countries on the same income. And they have reason to worry--it’s far from certain that there will be a deal ahead of this year’s deadline, Bloomberg says. “I’m very skeptical that the U.S. will agree to this proposal by the end of this year – or ever,” said Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics. Without a deal “interesting enough” to keep the parties at the negotiating table, U.S. companies could face taxes from perhaps a dozen countries that have proposed the idea, causing either a Republican or a Democratic administration to fend off levies on revenues that the U.S. views as within its right to tax, Bloomberg said. “There aren’t a lot of other tools in the toolbox to address unilateral taxes in a meaningful way,” Jenn said. He served as a U.S. delegate to the OECD and is now a partner at law firm McDermott Will & Emery. The negotiations are centered around two main points: establishing a global minimum tax so companies can’t avoid taxes entirely, as well as reallocating taxing rights, meaning some countries with many customers or users of a digital service could push for taxes on some of the profits even if the company doesn’t have business operations there. U.S. Treasury Secretary Steven Mnuchin said after a G-20 Finance Ministers meeting in Saudi Arabia that there’s “pretty much consensus” about the minimum tax. The point of contention is reallocating taxing rights, which the U.S. wants to be optional for companies. The OECD plan “is structured so that those companies would pay more tax abroad, regardless of U.S. tax policy,” Daniel Bunn, vice president of global projects at the Tax Foundation, said. And, it’s still not clear how the U.S. would fare under the global approach—since it could “lose the right to tax some profits from highly profitable technology and pharmaceutical companies, but gain some of that back from foreign companies that have lots of U.S. customers, including French luxury brand conglomerates or German carmaker Mercedes-Benz AG. Facebook Chief Executive Officer Mark Zuckerberg said this month he approves of the OECD efforts, even though it would increase his company’s overall tax bill, because it would create a “stable and reliable system going forward.” So, we will see. It now seems clear that world commerce will be changed after the coronavirus threat ends, but there is not yet any indication of what those shifts may be. The threat of additional taxes seems real, but so does the threat of damaging instability. These are trends that should be watched closely as they continue to emerge in today’s hyper-political world, Washington Insider believes.
| Rural Advocate News | Friday February 28, 2020 |
USDA Official Says Growers Will Not Be Required To Test Hemp Crop at DEA Labs For 2020 Crop Year Growers will not be required to have their hemp crops for the 2020 crop year to be tested at Drug Enforcement Agency (DEA) certified labs, according to USDA Undersecretary for Marketing and Regulatory Affairs Greg Ibach. "DEA will still expect states to work with their labs to try and achieve certification for the 2021 crop year. But for the 2020 crop year, we are not going to require all those labs to through DEA certification,” he told members of the National Association of State Departments of Agriculture. The issue of testing the crop and what producers would be required to do with a “hot” crop – one that is above the 0.3% maximum for THC – remain a key issue for the industry moving forward.
| Rural Advocate News | Friday February 28, 2020 |
EPA Chief Pledges Word ‘Soon’ on Small Refinery Waivers Decision EPA Administrator Andrew Wheeler would not confirm to lawmakers that reports the agency would dramatically scale back its use of small refinery exemptions (SREs) were on the mark, only offering that they would announce the decision “soon.” Wheeler insisted to lawmakers EPA officials were still discussing the situation with the Department of Justice and the White House relative to the 10th Circuit Court decision, which ruled EPA overstepped its bounds on three SREs granted for the 2016 compliance year. “We are working with the Department of Justice and closely looking at that as well as other court decisions” relative to the RFS. “It is a very litigated area,” he added. Even though several lawmakers sought Wheeler’s comments on the SRE decision, Wheeler would only pledge that the agency will be issuing guidance relative to the court ruling and said that guidance would be coming “soon.”
| Rural Advocate News | Friday February 28, 2020 |
Friday Watch List Markets Among reports early on Friday are personal income, consumer spending and core inflation. DTN will be watching closely for any news regarding the coronavirus (Covid-19), Chinese buying interest and weather in South America. Weather Light snow today and Friday for northern areas of the western Midwest, mostly dry Saturday. A band of moderate snow Saturday night into Sunday likely over southern Minnesota. Moderate rain developing over southern Missouri into Monday. The eastern Midwest to see rain, snow and freezing rain changing to mostly snow tonight. Some moderate snow over Ohio on Friday. Some light snow on Saturday. Moderate snow Wisconsin into Michigan and light to moderate snow south on Sunday. Showers drying out on Monday. Central and Southern Plains to be mostly dry today, some light in Colorado/western Kansas Friday. Mostly dry Saturday. Some rain shower activity east Saturday night/Sunday, mostly south/east Texas Monday.
| Rural Advocate News | Thursday February 27, 2020 |
Deadline for CRP Signup is Friday The deadline to get involved in the Conservation Reserve Program is this Friday, February 28. Agricultural producers and private landowners need to make an offer of acres or schedule an appointment to do so with their local USDA service center by Friday. The signup first opened in December and is available to producers and private landowners who are either offering acres for the first time or re-offering acres for another 10-15 year term in the Farm Service Agency’s conservation program. “Call your FSA county office today to make an appointment to sign up for the Conservation Reserve Program,” says FSA Administrator Richard Fordyce. “As long as you have an appointment scheduled, your CRP offer will be able to compete in this general signup, even if the appointment is in the first week of March. This is the first opportunity for general signup since 2016 and we want to make sure interested producers and landowners take advantage of the popular conservation program.” Farmers and ranchers who enroll land in CRP receive yearly rental payments for voluntarily establishing long-term, resource-conserving plant species, such as approved grasses or trees, which are called “covers.” CRP currently has about 22 million acres enrolled, but the fiscal cap for 2020 is 24.5 million acres. ********************************************************************************************** Agriculture Still Slowing Pace of EU, U.S. Trade Talks U.S. President Donald Trump is turning up the heat on Brussels when it comes to trade discussions. He’s set on taking down some trade barriers to so-called “chlorine chicken,” GMO crops, and other U.S. products that don’t fit into the EU’s strict food safety standards. The two sides are still stuck on agriculture, which isn’t helping the talks that have struggled to get off the ground since 2018. Each side has been talking up the potential of a deal ahead in the coming weeks or months. EU Trade Commissioner Phil Hogan has said recently he’s aiming for a mini agreement as soon as March 18. U.S. officials have long been unhappy with the EU policy that tightly controls agricultural tools like pesticides. Hogan notes that U.S. rules currently block sales of European apples and pears, so there is an opening for regulatory tradeoffs on both sides of the Atlantic. Politico says the U.S., is an agricultural powerhouse that has seen its share of the EU market shrink steadily for decades. The trade deficit with Europe topped $2 billion in 1989 and evolved into a $15 billion deficit in 2019. ********************************************************************************************** Trump Leaves India without a New Trade Deal President Trump is leaving India without the trade deal in place he was hoping for. The U.S. president was looking to expand access to the massive market for U.S. dairy goods and other products like motorcycles and medical devices. India currently has tariffs on American farm goods at an average rate of 32.8 percent. As if that’s not high enough, India has 100 percent tariffs on raisins and coffee, as well as 150 percent on alcoholic beverages. For the second time since last September, when India’s prime minister visited the U.S., the two sides failed to reach even a limited “mini-trade deal,” which would increase trade on focused groups of goods, which would include dairy products. The New York Times says negotiators have worked since 2018 on a deal that would lower India’s barriers to some American products, as well as restore India’s access to a program that allows goods to enter the U.S. tariff-free. The U.S. India Business Council released a statement that says,” Both sides are tuned into their own political imperatives and not where the other side might have an area of accommodation. That makes it harder to find where the common ground is and where a deal could be struck.” ********************************************************************************************** Wisconsin Representative Asks Perdue for More Certainty Wisconsin Representative Ron Kind fired off a letter to Ag Secretary Sonny Perdue demanding more information after the Secretary and the President brought up the possibility of more trade aid for farmers. Perdue had recently told farmers “not to anticipate” more aid in 2020, but Kind points out that the purchases promised in the trade deal with China have not materialized yet. The president says the trade aid would be paid for by tariffs the Administration has slapped on imported goods. However, Kind says that’s a tax actually paid for by working families. Because the purchases outlined in the Phase One trade deal haven’t happened yet, the Wisconsin Representative is pushing for a clear plan from the Ag Department on how they will enforce China’s commitments and ensure farmers “see the proof” of these purchases as promised. “Farmers in Wisconsin have been forced to bear the burden of this Administration’s trade war for nearly two years,” Kind says in the letter. “This deal was supposed to bring them some much-needed relief but instead, the secretary and the president continue to create more uncertainty.” Kind says he’s consistently expressed concerns that the agreement wasn’t fully binding like a more traditional trade agreement. ********************************************************************************************** Commodity Experts Worried About the Coronavirus Commodity experts at the International Sweetener Colloquium say announcements on the spread of the coronavirus and the falling stock market are making them nervous about the future. The director of dairy market intelligence for High Ground Dairy says fear is gripping the entire supply chain. While dairy prices have risen recently after multiple bad years, the coronavirus could pull dairy prices lower. That means price forecasting in any agricultural sector is extremely difficult. Stephen Nicholson is a senior analyst for Rabo AgriFinance, who says, “We have to be ready for more volatility as we see trade disrupted. We’re going to see economic activity contract and there may be a little more downside than we’d thought.” He’s not in the same camp as those who are sure that the Chinese will fulfill their promises to buy $40 billion to $50 billion in agricultural products. Nicholson says commodity prices are low, which means China will have to buy a lot of products to spend that much money. The Hagstrom Report quotes Nicholson as saying the Trump Administration will have to make a “tough decision on whether to punish China if they don’t live up to their promises.” ********************************************************************************************** Wisconsin Senator Working to Slow the Tide of Dairy Bankruptcies Wisconsin is currently leading the nation in farm bankruptcies, a position that no one wants to be in. Wisconsin Senator Tammy Baldwin is working to give flexibility to local banks and credit unions to help fight the surging number of farm bankruptcies. Local financial institutions like banks and credit unions are restricted in their regulatory lending ability to farmers, even though they are uniquely positioned to help farmers get the loans they need to get by. In a letter to financial regulators, Baldwin and John Thune from South Dakota are urging the federal government to give those local banks and credit unions the flexibility they need to help farmers navigate through these tough economic conditions. Baldwin says, “We’re calling on the federal government to lift the regulatory restrictions on local financial institutions to ensure our farmers have the tools to be successful and move our state forward.” Baldwin and Thune sent their letter to financial regulators from the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration.
| Rural Advocate News | Thursday February 27, 2020 |
Washington Insider: Coronavirus Pressure on the Fed The key issue in the media this week is the spread of the coronavirus and its impact. The question of what the central banks and other will do in response is also “a dire challenge,” The Hill says this week. Pressure is building on the Fed to cut interest rates as it struggles to both keep the economy stable and defend its independence from the President’s pressure. The Fed earlier indicated a desire to keep interest rates steady this election year after navigating both a trade war and a global downturn in 2019, The Hill says. But, even as bank officials say it is too soon to react to the outbreak, “that stance is being put to the test.” U.S. financial markets are now betting on an interest rate cut after this week’s Wall Street losses obliterated six weeks of stock gains as coronavirus fears intensified. Tuesday’s 3.2% plunge followed a Monday loss of 1,031 points, or 3.6%, its worst day since February 2018. The stretch of losses could extend further as worries about the coronavirus fester continue the Centers for Disease Control and Prevention warned Tuesday. “It’s not a question of if this will happen but when — and how many people in this country will have severe illnesses,” said Nancy Messonnier, a top CDC official. “Disruption to everyday life might be severe.” The warning from federal health officials spurred further alarm among investors as expectations of a Fed rate cut in March rose to 27.7% Tuesday from just 11.1% a week ago, according to investment firm CME Group. Fed officials have been reluctant to cut rates further after slashing borrowing costs three times last year, bringing the central bank’s baseline range to just 1.5% to 1.75%. With rates so close to an effective rate of zero percent, economists fear that a minor reduction would do little to handle a global supply shortfall and cost the Fed crucial room to cut rates in the event of a crisis. “They won’t want to cut rates too soon and then immediately see the pace of new infections quickly diminish and an inventory correction occur suddenly, wrote University of Oregon economic professor Tim Duy in a Tuesday analysis. Several members of the Federal Open Markets Committee, which sets Fed interest rates, have spoken out against cutting over the past four days. The Fed held rates steady at its January meeting and had expected to maintain that stance. Fed Vice Chairman Richard Clarida said in a Tuesday speech that “it is still too soon” to gauge the potential economic impact the outbreak could have on the U.S., adding that the Fed will “respond accordingly” to “a material reassessment of our outlook.” Clarida’s comments echoed similar remarks from several Federal Reserve Bank presidents — including Loretta Mester of Cleveland, Raphael Bostic of Atlanta and James Bullard of St. Louis — who played down the need for a March rate cut over the past few days. But the economic toll of a prolonged outbreak also would likely raise the President’s ire as he seeks reelection on the strength of the economy. He and his top officials who regularly pressure the Fed to cut rates amid stock downturns have tried to soothe the fears of a pandemic driving Wall Street’s losses. “We have very few people with it,” the President told reporters at a press conference in New Delhi on Tuesday, saying it was “well under control” in the U.S. “The people are getting better. They’re all getting better,” Other officials agreed despite warnings from CDC officials. Economists at Goldman Sachs warned last week that the coronavirus could cause a stock market correction, which is considered a 10% decline from the most recent peak, before the weekend’s sharp increase in infections. The President often ties the success of his economic agenda to the rise of the stock market while blaming the Fed for even minor downturns. The president has piled unprecedented pressure on the Fed and its chairman, Jerome Powell, to pump a steady economy with crisis-level stimulus. “When Jerome Powell started his testimony recently the Dow was up 125, & heading higher. As he spoke it drifted steadily downward, as usual. Germany & other countries get paid to borrow money. We are more prime, but the Fed Rate is too high, Dollar tough on exports,” the President tweeted earlier as Powell testified before a House committee. The Fed has largely ignored the President’s pressure and took great pains to distance its three 2019 rate cuts from any political considerations. But the President’s pressure is likely to intensify if the markets continue their weakness, The Hill said. “A Fed rate cut will bolster financial conditions but it will take months to filter through to the real economy,” said Joe Brusuelas, chief economist at U.S. tax and audit firm RSM on Tuesday. Brusuelas warned that if the coronavirus outbreak slumps the U.S. economy, it could take a special lending facility from the Fed and fiscal action from Congress to counter the damage. “The agencies that could help like the [Small Business Administration] need to be mobilized now and additional trade finance will need to be considered,” he said. So, we will see. The situation appears to be highly complex and challenging, and there is the potential for destabilization if inappropriate policies are applied. It certainly is one producers should watch closely as it continues, Washington Insider believes.
| Rural Advocate News | Thursday February 27, 2020 |
USDA Sees Continued Tame Grocery Store Food Price Inflation Ahead Food at home (grocery store) prices are seen increasing from 0.5% to 1.5% in 2020, in line with the 2019 increase of 0.9% and a forecast that would continue the trend of grocery store prices rising less than one percent that has been in place since 2016, according to USDA. 2015 was the last time that grocery prices rose more than 1% with an increase of 1.2%. Still, the result remains well below the 20-year average of 2%. USDA also recalculated the 20-year averages for food items to include the 2019 data, with nine categories seeing a decrease in their averages (beef and veal, fish and seafood, eggs, dairy products, fats and oils, fruits and vegetables, fresh fruits and vegetables, fresh fruits, and other foods) while four saw increases (food away from home, pork, fresh vegetables, and sugars and sweets). Food away from home (restaurant) prices have continued to see strong increases as they contain several other cost factors not included in grocery store prices such labor and rental prices with food making up only a small percentage of total restaurant costs.
| Rural Advocate News | Thursday February 27, 2020 |
Report says EPA to Extend Court Ruling on RFS Waivers Nationwide The Trump administration has decided to limit the small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) based on a January court ruling that EPA overstepped its bounds in granting three SREs for the 2016 compliance year. EPA is now expected to apply the ruling by the 10th Circuit Court of Appeals nationwide, Bloomberg reported, citing sources familiar with the internal discussions. This would mean that only a few small refiners would be granted the exemptions as the court ruling indicated that EPA erred in granting the waivers as they were not extensions of waivers that had been granted in 2010. EPA data showed a sizable increase in the level of SRES granted starting with the 2016 compliance year. EPA data posted showed that the agency approved eight out of the 16 SREs sought for the 2013 compliance year, eight of 13 sought for the 2014 compliance year and seven of 14 sought for the 2015 compliance year.
| Rural Advocate News | Thursday February 27, 2020 |
Thursday Watch List Markets Thursday's schedule of events will look familiar to long-time market watchers: USDA export sales, weekly U.S. jobless claims and a new U.S. Drought Monitor at 7:30 a.m. CST. Also at 7:30 a.m., fourth quarter U.S. GDP and advanced durable goods in January will be posted. The U.S. Energy Department will provide natural gas inventory at 9:30 a.m. CST. South American weather and any trade news also remain of interest. Weather A little light snow in the Northern Plains and lighter lake-effect snow in the eastern Midwest, otherwise it will be rather quiet over the major crop areas on Thursday. Warming conditions over the next several days will help with snowmelt and soil drainage.
| Rural Advocate News | Wednesday February 26, 2020 |
Progress on Implementing the Phase One Trade Deal with China Ag Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer announced that China has taken numerous actions to begin implementing its agriculture-related commitments in the Phase One trade deal. The countries first entered into the landmark agreement back on February 14. China’s actions toward implementing the deal include signing a protocol that allows the importation of U.S. fresh chipping potatoes. They’ve lifted the ban on imports of U.S. poultry and poultry products, including pet food containing poultry products. China has lifted restrictions on imports of U.S. pet food that contains ruminant material. They’ve also updated lists of facilities approved for exporting animal protein, pet food, dairy infant formula, and tallow for industry use to China. The Chinese government has also updated the lists of products that can be exported to China as feed additives. Additionally, China has begun announcing tariff exclusions for imports of U.S. agricultural products subject to its retaliatory tariffs, and it announced a reduction in retaliatory tariff rates on certain U.S. agricultural goods. Lighthizer says, “We’re already seeing positive results just a month after signing the agreement with China. We will continue to ensure the agreement is strictly enforced for the benefit of our workers, farmers, ranchers, and businesses.” ********************************************************************************************** Wheat Exports Set to Rise Ag Secretary Sonny Perdue had good news for U.S. wheat farmers. Effective immediately, U.S. wheat can now be shipped to Kenya regardless of the state of origin or which port of export it comes from. This important step means that Idaho, Oregon, and Washington can now join the list of states that can ship wheat to Kenya. “America’s farmers in the Pacific Northwest now have full access to the Kenyan wheat market,” says Greg Ibach (EYE-baw), USDA Undersecretary for Marketing and Regulatory Programs. “This action proves our commitment to securing fair treatment and greater access for U.S. products in the global marketplace.” The USDA’s Animal and Plant Health Inspection Service has been working closely with Kenya for 12 years to address plant health concerns that kept U.S. wheat exports from Idaho, Oregon, and Washington, out of Kenya. The export protocol signed off on by Kenya’s Plant Health Inspectorate Service and APHIS gives U.S. exporters full access to the wheat market in Kenya, valued at nearly $500 million annually. ********************************************************************************************** Doing a Deep Dive into U.S. Dairy Consumption It’s no secret that the dairy sector has been struggling with low milk prices for years. Agricultural Economic Insights took a deep dive into the U.S. dairy industry in the face of rising bankruptcies among small farmers and big milk processors like Dean Foods. Fluid milk consumption per capita in the U.S. has been falling for decades. However, consumers are actually buying more dairy goods overall, including more butter and cheese. Cheese consumption per capita has doubled since 1975, with mozzarella and cheddar each representing about 30 percent of consumption in 2018; butter consumption has grown by a third since 2001 and a Politico article says part of that surge comes because fat has lost some of its stigma among dietary health advocates. Per-capita yogurt consumption was steadily climbing up till 2014 before dropping over the past five years. Fluid milk consumption dropped more than 40 percent since 1975, or about 1.2 percent per year. In the meantime, alternatives like almond and soymilk have grown in popularity. Overall, the dairy industry is primarily driven by slow rates of changes unfolding over several decades,” says AEI farm economist David Widmar. Farm bankruptcies in the dairy industry jumped by nearly 20 percent in 2019. ********************************************************************************************** UK Farmers Union Wants High Food Standards in Trade Negotiations The United Kingdom shouldn’t allow imports of food that fall short of the country’s own standards when it draws up trade agreements. That thought comes directly from the head of the UK’s National Farmers Union. NFU President Minette Batters says domestic production standards should be used as a benchmark in trade talks. Business Times Dot Com says her comments signal that British farmers would face a setback if the government allows imports of products that are treated with certain chemicals or made using lesser animal-welfare rules. After leaving the European Union last month, the UK is working on getting trade talks going with multiple nations that cover everything from food trade to data protection. “It’s not just about chlorinated chicken,” Batters says in a statement. “This is about a wider principle. We must not tie the hands of British farmers to the highest rung of the standards ladder while waving through food imports which may not even reach the bottom rung.” As it has in America, trade uncertainty is weighing down UK farm sentiment, with one-year confidence falling to its third-lowest point since 2010. ********************************************************************************************** U.S. Facing a Sugar Shortage and Higher Prices Last year was a rough one for American sugar farmers. The Hagstrom Report says America is facing a sugar shortage after last year’s bad weather in the Midwest, a freeze in Louisiana, and drought in Mexico. The shortage is driving the prices for the industrial sweetener higher, reaching several cents above average. A national refiner of raw sugar is offering refined cane sugar at 44 cents per pound now and 41 cents for the calendar year 2021. That’s compared with the more usual prices of 37 to 38 cents. The bad weather hit particularly hard in the Red River Valley of North Dakota and Minnesota. Those areas have some of the most sophisticated delivery systems to candy makers and other food companies in Chicago and other midwestern cities. The U.S. Ag Department can make changes if needed to its sugar management system to make it easier and cheaper to bring in raw cane sugar from other countries into the United States, but also has no control over the refining process once the sugar enters the country. The U.S. sugar industry used to have 104 production plants but now has 45. ********************************************************************************************** More Farmers Converting to Organic U.S. farmers harvested almost 3.3 million acres of certified organic field crops in 2019, with that number driven by 14 percent more organic operations. Those numbers come from Mercaris, the market data service and online trading platform for organic, non-GMO, and certified agricultural commodities. The company’s final 2019 report shows that the number of growers converting land to organic production escalated significantly throughout 2019, adding to the U.S. organic harvest and offsetting the impact of a wet growing season. Producers harvested 1.1 million acres of organic hay and alfalfa in 2019, up eight percent year-over-year with 11 percent more certified organic operations. Thirteen percent more certified organic operations harvested organic corn over 2019, offsetting a significant decline in the number of harvested acres per operation. The number of certified operations harvesting organic soybeans reached 2,835, up 11 percent. The amount of harvested organic wheat acres was driven by expansion in the High Plains region, growing 16 percent in 2019. A release from Mercaris says, “Despite what can fairly be described as the most difficult growing season in more than a decade, 2019 was a remarkable year for organic production.”
| Rural Advocate News | Wednesday February 26, 2020 |
Washington Insider: Coronavirus Damage The U.S., like nearly all of the rest of the world, is quite unprepared to deal with a vicious new disease, Coronavirus (COVID-19), or even to know how it should be regarded. The New York Times said on Tuesday that while “Wall Street is (finally) waking up to the damage the virus could cause, no one really knows quite what should be done.” The Times focused on the uncertainties involved and reported “a strange divergence” among people in the trenches of global commerce—supply chain managers, travel industry experts, employers large and small who warned of substantial disruptions to businesses and the financial markets — and most economic forecasters who had been willing to downplay expectation of economic harm or loss of profits. “Something had to give and this week, it did,” NYT said, “giving way to a more pessimistic view across major world markets.” While “huge uncertainty” remains about how widely the virus will spread and how much damage it will do, at least the financial world “is realizing just how much is at stake” — and how different this may be from other recent hiccups in the global economy, notably last year’s trade war between the United States and China. “It’s one thing if Wuhan is on lockdown, another if China is on lockdown; or Asia--and yet another if the whole world is affected,” said Patrick Chovanec, an adviser for Silvercrest Asset Management and an expert on the Chinese economy. Since the end of the global financial crisis more than a decade ago, investors who have been the most alarmist about various risks have had a tendency to lose money. Global asset prices have been on a steady march upward despite the eurozone crisis, the end of the Federal Reserve’s quantitative easing, the trade war and every other problem that has occupied financial headlines. So it is somewhat understandable if investors were quick to assume that coronavirus would follow a similar pattern — a temporary blip that reduced China’s growth for a quarter or two but had little lasting impact. “The portfolio managers apparently figured this is a flash-in-the-pan virus, that will end as soon as the winter does, and that even if that assumption isn’t right, that central bankers will step in and fix this mess, the Times said. Markets accustomed to optimism may be all the more vulnerable if the virus becomes a global pandemic that causes meaningful pullback of commerce across major economies. The financial markets remain richly valued, even after Monday’s sell-off that included a 3.4% drop in the S&P, the steepest single-day retrenchment in two years. The U.S. stock market remained above its level of Feb. 7. The trade war, in which the United States and China placed tariffs on specific imported goods, caused a significant slump in manufacturing last year. But the coronavirus is hurting service industries as well. If the authorities in major world economies start shutting down any facility where large numbers of people congregate — a list that includes factories, shopping malls and airports — the damage could prove broad and lasting. When a hotel or airplane sits empty for weeks because people are afraid to travel, that is a loss that cannot be recovered once business returns. That’s particularly relevant for the United States, where service industries account for the majority of economic activity. This means that even companies that made it through the trade wars unscathed might be exposed to lost revenue or business shutdowns because of the virus outbreak. Moreover, while tariffs might put sand in the gears of global commerce, implications are different when gears stop entirely. Companies had many options for dealing with the trade war, whether sourcing goods from elsewhere or simply paying more for them. The longer the shutdowns of Chinese production and the more widely other countries are forced to take similar measures the more the spread of the virus could affect the ability of global companies to do business. Moreover, while the Fed and other central banks may well take action to try to insulate the world economy from the disease shocks, their tools are ill-suited to the task in many ways. The economic effects of coronavirus on the productive potential of affected nations from factors unrelated to those that more traditionally shape economic results like monetary policy or fiscal policy. In addition, lower interest rates won’t make a sick person well or give public health authorities confidence that businesses can reopen. All they can do is lower borrowing costs and help encourage businesses and consumers to spend and push financial market prices higher. “We would rather have a vaccine than a rate cut and fully recognize that monetary policy is not optimized for addressing this type of shock,” said Krishna Guha with Evercore ISI, in a research note. “But it does not follow from this that the appropriate path of policy under the shock is unchanged.” Neither economists nor portfolio managers make particularly good epidemiologists. But what has become clearer in the last few days is that it is the science of epidemics — and the policy choices that nations make to try to address them — that will shape the economy for the near future, and maybe quite some time to come. So, we will see. Amid growing concerns regarding economic impacts, there is new talk of additional technologies and perhaps potential to build a vaccine fairly quickly. However, the new disease threat is at least being taken seriously and its implications should continue to be watched closely as they develop, Washington Insider believes.
| Rural Advocate News | Wednesday February 26, 2020 |
US-UK Trade Officials To Meet This Week U.S. Trade Representative Robert Lighthizer will meet his British counterpart in London on Thursday as the two work toward reaching a trade deal yet this year. Lighthizer’s meeting with International Trade Secretary Liz Truss comes on the same day London releases its position on separate talks with the EU toward a post-Brexit trade arrangement. This comes as U.S. and UK meat industry groups have signed a memorandum of understanding to further their contacts as the two parties work on a trade deal. Meanwhile, reports indicate European Union (EU) Trade Commissioner Phil Hogan will be in Washington next month just a few days before March 18, his target date for striking a separate trade agreement with the Trump administration.
| Rural Advocate News | Wednesday February 26, 2020 |
USDA Touts China Actions in Phase One Deal USDA released an update which outlines the changes that China has made as part of the phase-one trade deal, including shifts the country undertook on several fronts. China’s lifting of its ban on imports of U.S. poultry, noting it also includes pet food containing poultry products. China also listed its restriction on pet food containing ruminant material. USDA also noted China’s action on a new protocol to allow in fresh shipping potatoes as another action the country took under terms of the deal. China has also updated its list of U.S. facilities that can export animal proteins, pet food, dairy, infant formula and tallow for industrial use, and also broadened its list of U.S. seafood products. The announcement also touted China’s action to half retaliatory tariffs on a host of U.S. products and allow Chinese importers to apply for exemptions on tariffs for nearly 700 U.S. products.
| Rural Advocate News | Wednesday February 26, 2020 |
Wednesday Watch List Markets It looks likely that the spread of coronavirus will remain a concern for markets, at least into spring. South American weather also gets attention as Brazil advances through its soybean harvest. At 9 a.m. CST, U.S. new home sales will be released, followed by the Energy Department's weekly report of energy inventories, including ethanol. Weather Wednesday features rain and snow in the eastern Midwest and mid-South, keeping soils saturated ahead of spring. Other crop areas will be dry, allowing for some excess moisture drainage. Northern Midwest conditions will continue to have snowpack-induced cold.
| Rural Advocate News | Tuesday February 25, 2020 |
Trump says More Trade Aid an Option; Conflicting Messages on the Need for it. A Twitter announcement from President Donald Trump last week made it seem like more trade aid for farmers hurt by trade disputes is a legitimate possibility. Evidently, he hadn’t yet made it known to USDA that this was on the table. “The president’s tweet was a surprise to us,” says Ted McKinney, Undersecretary for Trade and Foreign Ag Affairs. “That’s the decision we’ll go with.” Politico says the administration’s agricultural forecasts offer some conflicting messages about whether additional trade is actually needed this year. USDA’s Chief Economist, Robert Johansson, predicts a return to what he called “normal trade” in 2020, along with mentioning more hopeful signs for the farm economy ahead this year after a recent economic downturn. Farm income is projected to increase this year despite a large drop in federal farm payments as the 2019 trade aid program wraps up. Ag Secretary Sonny Perdue has already predicted a “record year for agricultural exports with China.” But, market analysts say isn’t entirely possible because of Beijing’s insistence on following market demand and complying with World Trade Organization limitations. USDA has already paid out $23 billion directly to U.S. producers since 2018. ********************************************************************************************** Brazilian Beef is Back in the U.S. Late last week, the USDA reopened the door into the U.S. market for imports of raw beef from Brazil. The agency says the world’s largest beef exporter has taken the right steps to improve its food-safety inspection system, bringing it up to U.S. standards. Some farmers, ranchers, and food safety groups are already pushing back against the decision. The National Cattlemen’s Beef Association is one of those groups that has serious concerns about the decision. “NCBA strongly supports science-based trade and the administration’s efforts to enforce it,” says Kent Baucus, the Senior Director of International Trade and Market Access for NCBA. “But, NCBA has serious concerns about Brazil returning to the U.S. beef market.” He says the NCGA has frequently questioned the lack of scientific evidence that was used to justify Brazil’s initial entry into the U.S. market in 2016. “Unfortunately, we weren’t surprised that Brazil forfeited its beef access to the U.S. in 2017 due to a large number of food safety violations,” Baucus says. “Given Brazil’s history with foot-and-mouth disease and its track record of repeated food safety violations at ports-of-entry, you can rest assured that we will keep a sharp eye out on all future developments with Brazil.” ********************************************************************************************** Deere says Farms, Ag Economy Beginning to Stabilize Deere and Company had a surprisingly strong first quarter after an extended period in which the tractor and construction equipment maker was hit hard by the trade dispute between China and the U.S. “Farmer confidence, though still subdued, has improved due in part to hopes for a relaxation of trade tensions and higher agricultural exports,” says CEO John May. An Associated Press report says China has suspended more punitive tariffs on imports of U.S industrial goods in response to a truce in its trade war with Washington. It’s been well-documented how hard Chinese tariffs hit U.S. agricultural commodities like soybeans, which hurt farmers, and in turn, hurt farm equipment manufacturers as well. Illinois-based Deere and Company had posted three consecutive quarters of falling profits and slowing sales growth as trade tensions between China and the U.S. continued. It also stuck to a conservative outlook during 2020. Deere expects sales in its agriculture-and-turf business to fall between five and ten percent, and those in the construction and forestry segments to fall between 10 and 15 percent. ********************************************************************************************** NFU says Goodbye to Roger Johnson; Election Coming for New President The National Farmers Union officially saw Roger Johnson off into retirement late last week during a party that took place in the Farmers and Distillers Restaurant in northwest Washington, D.C. Johnson, the NFU President for 11 years, announced back in December that he would be retiring. “Farmers Union has been a fundamental part of who I am for all my life,” Johnson says. “It’s been the biggest honor of my life to serve this organization and the farmers and ranchers that make up the membership ranks. It’s a bittersweet feeling to step away from the role of a lifetime but I need to spend more time with my wife and four grandkids.” The Hagstrom Report says the election to replace Johnson at the top spot of the NFU is coming up March 1-3. There are three candidates to replace Johnson, including Rob Larew, NFU’s Senior VP of Public Policy; Donn Teske, president of the Kansas Farmers Union and a former NFU National Vice President; and Mike Eby, spokesperson and chair for the National Dairy Producers Organization. The Farmers and Distillers Restaurant where the retirement celebration took place is part of a restaurant group owned by the North Dakota Farmers Union. ********************************************************************************************** U.S. Launches Pilot Program for Prairie Pothole Region to Plant Cover Crops The USDA’s Farm Service Agency announced a new pilot program to enable farmers in the Prairie Pothole region to receive payments for planting cover crops on their land for three to five years. The new Conservation Reserve Program’s Soil Health and Income Protection Program, or SHIPP, is available for producers in Iowa, Minnesota, Montana, North Dakota, and South Dakota. The signup for the pilot program starts on March 30 and ends August 21. “We’re excited to provide a short-term Conservation Reserve Program option tailored to the unique soil health needs of producers in the Prairie Pothole Region,” says FSA Administrator Richard Fordyce. “The number of people that can be enrolled in the program is limited, and participation will be on a first-come, first-served basis.” Fordyce says interested landowners need to contact their FSA county office for an appointment to apply. Through the SHIPP program, producers have the option of taking a three, four, or five-year CRP contract to establish cover crops on less productive cropland in exchange for payments. Cover crops, used either in a single crop rotation or over multiple years, can improve the productivity and health of soils on a farm for generations and increase the bottom line for the farmer. ********************************************************************************************** Cargill Moving into the Fake-Meat Business Cargill is making a jump into the plant-based protein business. The global giant announced plans to sell its private-label plant-based patties and ground products to retailers and restaurants beginning in early April. Cargill says the offerings are part of its “new approach” to the future of the protein market, and they predict protein demand will jump by 70 percent over the next three decades. The plant-based products were developed and will be manufactured in Cargill facilities. The company’s managing director of the alternative protein team says they’ve created some of the “best-tasting products available in the plant-based category.” However, it doesn’t mean that Cargill is going to a 100 percent plant-based protein production plant. Brian Sikes, the leader of Cargill’s global protein and salt business says, “We need to keep all protein options on the table. Whether people are eating alternative or animal protein, Cargill intends to be right there at the center of the plate.”
| Rural Advocate News | Tuesday February 25, 2020 |
Washington Insider: Limited Trade Negotiation Progress in India Politico says this week that President Donald Trump has been anticipating a warm welcome in India, but that the nation has been reluctant to give the administration “even a small trade victory.” Over the last few weeks, U.S. officials have “struggled to clinch a miniature agreement” that could result in some modest additional access for U.S. medical devices, motorcycles and milk products in a market of more than 1.3 billion people. As a result, the president moved quickly to tamp down expectations, including that a “big deal” may only be possible “after he wins a second term.” U.S. Trade Representative Robert Lighthizer did not plan to travel to India with the president, further diminishing any chance for substantial results, nor did he go to India ahead of the president’s visit, also dampening expectations for a deal. “We may make a tremendous deal there -- or maybe we’ll slow it down. We’ll do it after the election. I think that could happen too,” the president said late last week. A senior administration official said a "wide scope" of issues is complicating progress toward a mini trade deal. "We want to address a lot of concerns and we’re not quite there yet.” He noted that discussions with the prime minister about these concerns are expected, Politico said. India is expected to announce some significant purchases of U.S. energy and defense products but the administration’s fixation with imbalanced trading relationships is likely impeding any willingness to offer New Delhi concessions, Politico said. India is the United States’ ninth-largest trading partner and bought about $34 billion worth of goods in 2019 -- just a fraction of the $256 billion exported to Mexico, the top destination for U.S. goods last year. The U.S.-Indian trade deficit was $24 billion last year while India's exports to the U.S. grew much faster than U.S. exports to India. Politico thinks these statistics could be driving the president’s reluctance to give India what it really wants -- access again to the U.S. Generalized System of Preferences, a tariff-cutting program for developing countries that discounts duties on roughly $6 billion worth of imports. Policies that have fiercely guarded India's markets have been the bane of multiple previous U.S. administrations. Even now, as India’s economy slumps further and pressure from neighboring China grows, New Delhi has continued to make protective moves including a multiyear "Make in India" initiative aimed at bolstering the country's manufacturing sector through local sourcing and production requirements, Politico said. India also released a national budget in late January that raised tariffs on a number of products that were under consideration to be cut or eliminated under a mini-agreement with the U.S. U.S.-India Business Council President Nisha Biswal said India’s tariff increases on walnuts, medical devices and other goods that were to be part of a trade deal further “complicated” the talks. The negotiations also got hung up on details related to increasing access for U.S. dairy products and credit card companies. Modi’s latest actions may reflect efforts to stem a tide of cheap, Chinese imports where a significant portion of the population still lives in poverty. India was also likely emboldened by the U.S. and other countries to stand firm or ramp up its tariffs. For months, administration officials have weighed the launch of a so-called Section 301 trade investigation, a law that gives the president broad leeway to impose trade restrictions to address unfair trade actions. Trump used the same authority on China, which resulted in tariffs on hundreds of billions worth of imports — but no final decision has been made on whether to apply it to India. At least this week, the President may be content to maintain the warm relationship with a leader he views as a kindred spirit who can mobilize the masses of supporters the president relishes. Modi’s visit to Houston in September where he held a joint rally with Trump brought the president one of his largest crowds. U.S. businesses were hoping a limited trade package would be a confidence-building move for a more comprehensive negotiation. "We are fundamentally looking at an Indian approach to trade that is still emerging and evolving from a more protectionist or closed trading system to a more open one," an administration official told Politico. So, we will see. India’s trade policies have long been difficult and highly political — and the growing global tensions and intensifying fears of a destructive coronavirus outbreak appear to be among several key economic and social threats lurking ahead, Washington Insider believes.
| Rural Advocate News | Tuesday February 25, 2020 |
EPA Receives Additional Small Refiner Exemptions EPA data shows the agency now has 23 small refinery exemption (SREs) requests for the 2019 compliance year, an increase from two compared with month-ago data. Attention continues on the issue with reports indicating EPA will respond to a court decision sometime in early March on this topic. Indications are the court ruling has the potential to impact many previously granted SREs in that the court determined that for three of those granted for the 2016 compliance year, the agency did not act appropriately as the court said the SREs were to be extensions of ones granted prior to 2010.
| Rural Advocate News | Tuesday February 25, 2020 |
China Lifts Ag Restrictions on US Beef China has conditionally lifted its ban on imports of U.S. beef/products from animals more than 30 months of age, according to a notice from the Chinese General Administration of Customs Office. The notice said that inspection and quarantine requirements would be released separately. The action is one of the moves that China agreed to make as part of the phase-one agreement with the U.S. The other one on beef is that China is to set maximum residue levels (MRLs) for three growth hormones used in U.S. beef production. That is an action that China agreed to take within 30 days of the agreement taking force – March 14. The age limit action announced by China was also on the same timeline as the MRL issue, so China is ahead of their deadline on that front.
| Rural Advocate News | Tuesday February 25, 2020 |
Tuesday Watch List Markets Traders are keeping an eye on the spread of coronavirus with questions as to whether it can be contained. Tuesday's lone report is for U.S. consumer confidence at 9 a.m. CST. South American weather and any trade news will also get attention. Weather Tuesday features snow, cold and strong winds in the Northern and central Plains, and rain in the eastern Midwest and Southeast. Areas with snow will have transportation and safety issues along with livestock stress. Rain in the Midwest continues to keep soils saturated ahead of spring. A drier trend is in store during the last half of the week.
| Rural Advocate News | Monday February 24, 2020 |
Pork Pessimistic on EU; Cattle Optimistic on China U.S. pork producers don’t seem optimistic about a potential trade deal with the European Union coming together anytime soon. Nick Giordano is the Vice President of Global Government Affairs for the National Pork Producers Council. Giordano tells Politico that he’s “very skeptical” that the two sides will even reach a mini agreement in the weeks ahead. He feels the real goal should be a comprehensive trade pact covering all sectors of agriculture. “It’s outrageous that a market of that size, with that level of income, is so closed to us,” Giordano says. “They’re stealing jobs from us because of their protectionism and that’s unacceptable.” The VP says there will be widespread support in the U.S. agriculture community for the Trump Administration to take tough action against the EU if there are no concessions regarding a more open EU market. Meantime, U.S. cattlemen might annually sell $4 billion worth of beef to China within the next five years. Kent Baucus, Senior Director of International Affairs with the National Cattlemen’s Beef Association, says the Phase One trade deal and the meat shortage in China cause by African Swine Fever should drive U.S. beef exports higher. “We haven’t even scratched the surface on the Chinese market,” he says. “There is a tremendous amount of unmet protein demand in China. ********************************************************************************************** USDA Ag Outlook Forum Calls for a Return to “Normal” Trade in 2020 The USDA’s top economist predicted agricultural trade will return to normal this year. USDA Chief Economist Robert Johansson says farm exports to China will rise from $10 billion last year to $14 billion in 2020. That “slight” $4 billion jump doesn’t quite add up to the $40 billion in U.S. ag products that China committed to import from the U.S. under the Phase One trade deal. Johansson says the forecast “reflects public information that’s available right now on phase one.” Later, he added that the calendar year predictions don’t completely include the phase one commitments. However, Ag Secretary Sonny Perdue says that China’s import commitments were not included in Johansson’s estimates. “We expect to exceed that, certainly,” Perdue told reporters. An Agri-Pulse report says Johansson noted that improved exports this year should help farmers’ bottom lines in 2020, while lower interest rates would reduce borrowing costs and strengthen land values. USDA is projecting a corn price at $3.60 a bushel this year, down four percent from last year. The price of soybeans is expected to be $8.80 a bushel, one percent higher last year. Wheat prices are predicted to average $4.90 a bushel, up eight percent from 2019. ********************************************************************************************** Trump Promises Farmers More Trade Aid if Needed President Donald Trump took to Twitter again to talk trade. There have been questions on the possibility of more trade aid distribution this year, with the president seemingly saying it’s a possibility. “If our formally targeted farmers need additional aid until such time as the trade deals with China, Mexico, Canada, and others fully kick in, that aid will be provided by the federal government, paid for out of the massive tariff money coming into the USA,” he said in a Friday Tweet. However, The Hagstrom Report says Trump isn’t technically accurate when he says the aid will come out of tariff income. The money comes from the Commodity Credit Corporation, which was set up back in the 1930s as a way to distribute aid to farmers. The CCC is a division of the U.S. Department of Agriculture. It has a line of credit set up at the Treasury Department that Congress replenishes. Ag Secretary Sonny Perdue has told farmers recently to not expect more trade aid in 2020. The Trump Administration has already paid out a total of $28 billion in trade aid by way of payments to farmers, trade promotion, and purchases from food items for distribution to food shelves across the country. ********************************************************************************************** ASF Virus Infections Last Longer Than Originally Thought A group of researchers and veterinarians put together a fact sheet dealing with the African Swine Fever that’s called “Holding Time Calculations for Feed Ingredients to Mitigate Virus Transmission.” However, they’ve revised the necessary holding time upward when it comes to determining if the African Swine Fever virus is sufficiently degraded in feedstuffs to potentially prevent transmission. The new recommendation is to hold conventional soybean meal an average of 125 days from when it’s placed in a package, which is up from only 52 days found in previous research. The new research was funded by the Swine Health Information Center with Pork Checkoff Funds. The study was conducted at Kansas State University using the ASF virus inside the National Bio and Agro-Defense Facility. Experts recommend that producers talk with their feed suppliers and ask for the “born-on” date for all imported feed products. Vigilance is the best protection against a potential ASF outbreak in the U.S. To further ensure the U.S. swine herd remains free of African Swine Fever, the National Pork Producers Council is asking Ag Secretary Sonny Perdue to take further measures to keep potentially infected animal feed out of the country. ********************************************************************************************** Hopes Fading for a U.S.-India Trade Deal Before Trump Visits It’s looking like the U.S. and India won’t be able to reach a trade deal before President Donald Trump visits the country. A Reuters report says India has proposed new tariffs that have complicated the negotiations. The U.S.-India Business Council tells reporters that hopes were fading for the two sides to be able to quickly bridge the gap in their efforts to restore some U.S. trade preferences for India, as well as improve market access for selected U.S. farm products. “We’re still hopeful that some kind of agreement could be reached,” the council says in a statement. “We do recognize and acknowledge that both governments have been indicating that an agreement is not likely to happen at the stage of the talks.” Trump himself is sending mixed messages on the possibility of a trade agreement with India. “We’re going to India and we may make a tremendous deal there,” he says. “Maybe we’ll slow it down and do it after the election. We’ll see what happens, but we will only make deals if they are good deals that put America first.” A spokesman for India’s Foreign Ministry says they won’t rush into a trade deal with the U.S. unless there’s a balanced outcome that’s good for both countries. ********************************************************************************************** Farm Bureau Readying for Ag Safety Awareness Program Week The American Farm Bureau says its groups across the nation are getting ready for Agricultural Safety Awareness Week, which is coming up on May 1-7. U.S. Agricultural Safety and Health Centers will join the Farm Bureau in promotion of the week with the theme as “20:20 Vision on Ag Safety.” Ag Safety Awareness Program Week has a different focus each day. Topics Monday through Friday include Mental Health on Monday, followed by Transportation Safety, Weather Disasters, Confined Spaces, and Farmer Wellness on Friday. Both organizations encourage farmers across the country to make safety a priority on the farm during the week and throughout the entire year. The Agricultural Safety Awareness Program is part of the Farm Bureau Health and Safety Network of professionals who share an interest in identifying and decreasing safety and health risks. They invite farmers to visit their YouTube channel for new content and fresh ideas on how to stay safe while working in agriculture, forestry, and fishing. There’s a lot more information on the Agricultural Safety Awareness Week webpage as well.
| Rural Advocate News | Monday February 24, 2020 |
Washington Insider: Considering a New Farm Bailout It appears that the administration is seriously considering another farm bailout, in spite of its own recent negative comments regarding such an effort. The Washington Post is reporting that President Trump “for the first time Friday” vowed to continue his multibillion-dollar bailout of the farm industry “if necessary.” The White House comments appeared to surprise a number of administration officials, the Post said. However, the report noted that the comments came amid growing signs that last month’s partial trade deal with China is “falling far short of the levels initially promised.” As recently as Thursday, a senior U.S. Department of Agriculture official said China might end up buying just $14 billion in U.S. farm products through the end of September and that total purchases for the year could be much less than the $40 billion the president had promised. The Post said the President’s political support among farmers appears to continue to be strong “but White House officials have long been worried about a backlash if prices remain low and bankruptcies continue.” USDA reported at its recent outlook conference that total farm debt was at an all-time high and that there had been no “bump” in commodity prices following either the new China trade deal or the separate pact with Canada and Mexico — in spite of the president’s promise of a farming renaissance and his exhortation to farmers “to buy a bigger tractor and more land.” “We are frustrated with the situation. We understand the broader trade implications but feel we have been targeted in a bigger political battle we did not sign up for,” said Jamie Beyer, a soybean farmer in Wheaton, Minn. and president of the Minnesota Soybean Growers Association. “We are all very excited about the USMCA (U.S.-Mexico-Canada Agreement) and the trade deal with China. But we are all waiting for that to be reflected in commodity prices and orders… it’s disheartening." A third multibillion-dollar bailout could cast a shadow over administration claims about the “big, beautiful” trade deal reached with China last month, an agreement expected to form a key part of his 2020 reelection message on the economy. The outbreak of the coronavirus has wreaked havoc on the Chinese economy, making it more difficult to forecast how large farm purchases by China will ultimately be this year, the Post said. The farm bailout program began in 2018 as a way to address fury from farmers who said Chinese tariffs on their exports had pushed many to the brink of collapse. The program continued in 2019, but White House officials had suggested it would not be renewed in 2020 — until the President reversed course Friday. “Farmers are no dummies. They’ve seen this get rolled out the past two years, programs invented out of whole cloth,” said Roger Johnson, president of the National Farmers Union. “The president is going to do whatever he can to appease the farmers because it’s an election year." The need for what would amount to a third round of bailout funding highlights the immense challenges the administration has faced in its international trade war conflicts. It imposed tariffs on a range of Chinese imports, including steel, as a way to ramp up pressure on the Chinese government to boost U.S. imports. But China retaliated by targeting agricultural producers in politically critical Midwestern states. The administration “has said from the beginning that the trade war is nothing but rainbows and unicorns. The reality is that it’s not just us being tough on China; China and other countries are being tough on us,” said Rory Cooper, a former Republican aide who now works at Purple Strategies, a political consulting firm. Zippy Duvall, president of the American Farm Bureau Federation said that he was optimistic that China would purchase more than $14 billion in agricultural products, based on conversations with China’s minister of agriculture but that the final outcome was uncertain. “The difficult times farmers are having today are not getting any better because of slow implementation,” Duvall said. The President’s talk of additional bailout money may be meant as a signal to China that the White House will not wait patiently for Beijing to comply with the new trade deal, Sen. Kevin Cramer, R-N.D., a farm-state ally of the President, said. GOP lawmakers worry that the President’s trade war “weakened the impact of their 2017 tax law, slowing U.S. economic growth.” The bailout’s price tag is now more than twice the cost of the Obama administration’s auto bailout, which was criticized by conservative lawmakers, the Post said. Unlike with many other government bailout programs, farmers are not required to pay any of the money back. Still, Democrats may be in a difficult position to exploit the intra-GOP rift on the issue, the Post said. Congressional Democrats passed up an opportunity last year to force the White House to scale back the program amid pressure from lawmakers in their own caucus representing farm states. And party leaders such as Senate Minority Leader Charles Schumer, D-N.Y., have argued that the administration has “not been tough enough on China.” Senior administration officials previously expressed alarm about the administration’s legal justification for the bailout, which they have based on a New Deal-era program. It was modified from its initial form to include additional crops, among other changes. So, we will see. The administration’s heavy reliance on tariffs appears to be attracting growing criticism — at least in some quarters — especially as the coronavirus appears to continue to spread, a trend producers should watch closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Monday February 24, 2020 |
Boost in Guest Workers Coming From Trump Administration The Trump administration plans to allow 45,000 additional seasonal (H-2B visa program) guest workers to return to the U.S. this summer, the highest number since the president took office, according to administration officials. The Department of Homeland Security plans to announce the additional seasonal-worker visas next week. They will become available in two waves: the first 20,000 will be immediately available, while employers can apply for the remainder for jobs beginning June 1. The additional visas are being made available ahead of the summer, when demand for short-term work is typically highest.
| Rural Advocate News | Monday February 24, 2020 |
India Now Downplaying Expectations For US-India Trade Deal Soon Expectations for a U.S.-India trade deal to be inked when President Donald Trump visits the country next week continue to fade, with the U.S.-India Business Council the latest to lower those expectations. “As new issues have continued to emerge, including the introduction of new tariffs in the most recent budget,” the group’s president, Nisha Biswal, told reporters in a teleconference, “the conversations may have gotten a little bit more complicated.” However, Biswal said there is still a chance for an agreement, but “both governments have been indicating that is unlikely at this juncture.” Indications are that the situation is linked to India not making the kind of concessions on some issues that the U.S. sought as they were wanting to put some kind of trade deal together that Trump could announce while in the country.
| Rural Advocate News | Monday February 24, 2020 |
Monday Watch List Markets Coronavirus remains a concern to markets with infections spreading beyond China. With the Ag Outlook Forum concluded on Friday, traders will be back to checking South American weather forecasts and watching for any trade news to emerge. USDA's weekly report of export inspections is due out at 10:00 a.m. CST, followed by a monthly cold storage report at 2 p.m. Weather Moderate to locally heavy rain is in store for the southern Midwest and Delta Monday, keeping soils saturated and threatening flooding. Meanwhile, snow will develop in the northern and western Plains, adding to meltwater supply for spring flood potential.
| Rural Advocate News | Friday February 21, 2020 |
EU Sets a Target Date for U.S. Trade Deal Phil Hogan, European Union Trade Chief, says he’s looking to have a trade deal in place with the Trump Administration and the U.S. by March 18. Politico says he’s working on a package of agreements for EU leaders to present to Trump in the coming weeks. Among the potential concessions the EU may be willing to make are speeding up the approval process for certain Genetically Modified Organisms, as well as allowing U.S. imports of tallow, which is a form of beef or sheep fat. Why March 18th? That’s when higher U.S. retaliatory tariffs on Airbus planes are set to take effect. The Trump Administration last week raised duties from 10 percent to 15 percent but suspended implementing the increase. Hogan says the move by Washington, as well as the decision to not raise tariffs on EU farm goods, was seen as a positive sign that the U.S. is ready to make a deal. The U.S. also didn’t do anything to increase the 25 percent duties in place on European food and alcohol products. ********************************************************************************************** Hormel Eliminating Ractopamine from Hog Supplies Hormel Foods is getting rid of ractopamine (rack-TOH-pah-meen), a growth drug banned by China, from its hog supply. Hormel is joining rival companies like Tyson Foods and JBS in looking to make more meat sales to China, which is in the middle of wrestling with a large shortage of pork. Hormel isn’t going to accept hogs that have been fed or otherwise exposed to ractopamine after April first. Tyson Foods and JBS USA took that step last year. The companies’ moves ramped up the competition for the increased pork demand from China, where the outbreak of African Swine Fever has decimated their herds. In a statement announcing the move, Hormel says, “We have been actively monitoring the changing global market dynamics for several years and believe this decision will further position us to meet growing international demand.” Ractopamine is used in some countries to raise leaner pigs, but China doesn’t allow its use or tolerate residues in its imported meats. The European Union also bans ractopamine. ********************************************************************************************** Perdue Announces New Innovation Initiative for USDA Ag Secretary Sonny Perdue announced the Agriculture Innovation Agenda, which is a department-wide initiative to help better position U.S. ag to meet future global demands. The initiative will align resources, programs, and research to help stimulate innovation so that American agriculture can achieve the goal of increasing production by 40 percent while cutting the environmental footprint of U.S. agriculture in half by 2050. “We know we have a challenge facing us: to meet future food, fiber, fuel, and feed demands with finite resources,” Perdue says. “USDA’s Agriculture Innovation Agenda is our opportunity to define American agriculture’s role to feed everyone and do right as a key player in the solution to this challenge.” He calls the new agenda a strategic, department-wide effort to better align USDA’s resources, programs, and research to provide farmers with the tools they need to be successful. “We’re also continually mindful of the need for America’s agriculture industry to be environmentally, socially, and economically sustainable to maintain our position as a leader in the global effort to meet demand,” he adds. The first component of the Ag Innovation Agenda is to develop a U.S. ag innovation strategy that aligns and synchronizes public and private sector research. ********************************************************************************************** U.S. Pork Industry Wants Additional ASF Prevention Measures in Place Continued vigilance by the USDA, Customs and Border Protection, and the U.S. pork industry, means that the U.S. has so far prevented an outbreak of the African Swine Fever Virus. The disease affects pigs and poses no threat to human safety. The National Pork Producers Council and 30 state associations are asking Ag Secretary Sonny Perdue to take additional measures, including restricting imports of organic soy products for animal feed from all countries that have ASF outbreaks. The U.S. pork and feed industries have adopted holding times to allow for the natural degradation of any viruses, to ensure that most imported feed ingredients are safe to use. Research shows that organic soy products can maintain the virus for longer periods, making holding times impractical. Most soy imports into the U.S. are organic. NPPC says it’s confident in the safety of domestic soy products. NPPC and the associations are also asking USDA to further explore the merit of restricting all soy products from ASF-positive countries, to enhance its online system used to permit animal movements in the event of an outbreak, and to expand state animal health laboratory testing capacity. ********************************************************************************************** Groups to Study 100 Percent Biodiesel Engine Technology A wide range of groups announced a partnership to conduct a year-long validation project of revolutionary biodiesel technology. Five trucks owned by ADM will be outfitted with Optimus Technologies Vector Fuel System, which enables diesel engines to run almost entirely on sustainable biodiesel. In a real-world environment, the trucks will be used in everyday fleet operations for a year, with each vehicle likely to travel between 160,000 and 180,000 miles, while reducing up to 500,000 pounds of carbon dioxide. Five other trucks in the ADM fleet will be a control group in the study and operate on conventional biodiesel. While nearly all diesel engine manufacturers support at least 20 percent biodiesel, the Optimus Vector System is designed to allow conventional diesel engines to run on 100 percent biodiesel in a wide range of climates. The system is already in use in short mileage, local fleet applications. The new project will test the viability for longer-haul, over-the-road fleets, which could potentially open a pathway to significantly higher volumes of biodiesel in the U.S. truck fleet. Other organizations involved in the project include the National Biodiesel Board, the Illinois Soybean Association, and the Missouri Soybean Merchandising Council. ********************************************************************************************** Farmers Union Recommends Improvements to EQIP The USDA continues to implement the 2018 Farm Bill and released the Environmental Quality Incentives Program Interim Rule. The National Farmers Union is urging the agency to strengthen the conservation program to better support farmers as they work to ensure the longevity of their land and natural resources. Farmers Union President Roger Johnson says his group values the program and wants to make improvements to ensure its efficiency. “We’d like to encourage the agency to include climate resilience and soil health in its list of EQIP priorities,” Johnson says. “These are two of the most critical issues facing agriculture today and farmers need all available tools and resources to address them.” They also recommend NRCS give each state the ability to set their high-priority practices for increased payment rates. Local and regional offices are the most knowledgeable about the resource concerns in their areas and should determine, when possible, how to address those concerns. “We also urge NRCS to prioritize farmers and ranchers when allocating EQIP funding,” Johnson adds. “We’d like funding to be available to water management entities that serve mostly farmers and ranchers.”
| Rural Advocate News | Friday February 21, 2020 |
Washington Insider: Complex Economic Trends It seems likely that much of the coming political campaign debate will center on the economy, and that there may well be a series of political fights brewing there as the administration seeks to claim a “blue collar boom” across the U.S. At the same time, others tend to see the recent trends as more complicated. For example, Bloomberg is reporting this week that “in the 11th year of a record expansion the rising tide of the U.S. economy hasn’t been lifting all boats equally — at least when it comes to pay.” It is true that unemployment is the lowest for half a century and that wages have been picking up steam across the board, the report says — but it also notes that “the biggest rewards from a strong economy are still skewed toward white people, men and high earners.” The report relies on details from an annual study by the Economic Policy Institute. Administration officials frequently argue that previously left-behind groups are “benefiting from a blue-collar boom.” However, Bloomberg says that while there have been gradual improvements for many “some disparities have actually worsened over time.” It points to the wage gap between blacks and whites, which is wider now than in 2000. And, it points out that along with tight labor markets, minimum wage legislation at the local level has helped deliver some of the gains for low earners. In the past two decades — encompassing two expansions and a recession — wage growth has been fastest for the highest-paid workers, Bloomberg says. However, it notes that it wasn’t until last year that workers with only “some college education” got back to their pre-2008 wage level. It also notes that men with a standard college degree are still paid more than women with an advanced one--and black workers with some college education still get paid less than in 2000. Still, most black workers experienced stronger wage growth between 2018 and 2019 than any year since 2000, the report said. And it notes that Hispanic workers were the only ethnic group to see their wages rise across all education levels from 2018 to 2019--although at almost every level, Hispanic and black workers were paid less than white peers. Bloomberg also reports wage disparity “even near the top.” For example, men in the 95th percentile saw a 37% wage gain in the last 20 years, about twice that for those just next door in the 90th percentile. As for the median, that indicator ticked up only 3.4%. And among the top 0.1%, earnings grew at more than double the pace of the mere 1%. Wage rates paid to the lowest-paid men saw faster growth than those in the middle, with the 10th percentile rising 12% and the 20th up 10%. However, the gains among the lowest-paid workers have been concentrated during economic expansions with wages accelerating a few years into boom cycles and then tapering off. Minimum wage legislation also affected the trends, Bloomberg said. Pay rose 18% for the lowest-paid 10% of workers in states where minimum wage legislation was enacted in the last seven years. It rose just 9% in regions without those laws. The trend in wage growth is more important than usual just now, since it is one reason Federal Reserve policy makers are comfortable leaving interest rates at historically low levels at this time; Chairman Jerome Powell has cited growth beginning to reach those on the sidelines. So, we will see. The strong domestic economic trends have been widely welcomed even while there are reports of economic pitfalls ahead, including those facing trade policies as well as the coronavirus outbreak. USDA is emphasizing its belief that China will honor its phase one requirements in spite of the economic pressures it faces — although tensions appear to be growing between the U.S. and Europe. Clearly, the trends and issues producers face now are increasingly complex and difficult to evaluate. They should be watched closely as the season advances, Washington Insider believes.
| Rural Advocate News | Friday February 21, 2020 |
EU Trade Chief Lays Out US-EU Trade Pact Expectations European Union (EU) trade chief Phil Hogan is working to get a deal with the U.S. by March 18, he told reporters Wednesday night. Hogan said he is preparing a package of several agreements for European Commission President Ursula von der Leyen to present to President Donald Trump in the next few weeks. The Trump administration’s decision last week not to increase retaliatory tariffs on agricultural products in the long-running Boeing-Airbus dispute was a positive sign that the U.S. is willing to negotiate a deal, Hogan said. The U.S. Trade Representative instead boosted retaliatory tariffs on Airbus aircraft to 15%, from 10%, and left unchanged a 25% tariff on EU food, alcohol and other products. As for the significance of March 18, Hogan noted USTR Robert Lighthizer suspended the tariff increase on Airbus planes until March 18. “Between now and then, we are trying our best to have a mini deal based on the terms of reference that was given to us ... by President von der Leyen and Trump in Davos,” Hogan said.
| Rural Advocate News | Friday February 21, 2020 |
USDA Announces Program to Reduce Environmental Impact of Farming USDA Secretary Sonny Perdue announced an initiative to reduce the environmental impact of American farming. He stressed voluntary conservation incentives and efficiency improvements rather than regulation as he joins major farm groups in seeking to shape the public debate on agriculture and climate change. Some 21 farm groups announced a coalition Wednesday on environmental sustainability. Perdue set a goal of increasing farm production by 40% while cutting the “environmental footprint” in half by 2050. The initiative includes goals such as a 50% reduction in food waste by 2030, a 30% cut in fertilizer run-off by 2050 and an overall “net reduction” in carbon emissions by 2050 “without regulatory overreach.” Perdue also set a goal for biofuels such as ethanol to reach “market-driven blend rates” of 15% of U.S. transportation fuels by 2030 and 30% of transportation fuels by 2050.
| Rural Advocate News | Thursday February 20, 2020 |
Farm Groups Come Together for Sustainability Discussion Twenty-one farm and ranch groups that represent millions of U.S. farmers and ranchers are launching Farmers for a Sustainable Future. It’s a new coalition committed to environmental and economic sustainability. The coalition will serve as a primary resource for lawmakers and policymakers as they consider climate policies. One important task for the new coalition is to share with elected officials, media, and the public, U.S. agriculture’s commitment to sustainability and the incredible strides they’ve already made to reduce agriculture’s environmental footprint. As policy proposals are developed and considered, the goal is for the coalition and its guiding principles to serve as a foundation to ensure the adoption of meaningful and constructive policies and programs affecting agriculture. Those guiding principles include calling for policies that support science-based research, voluntary incentive-based conservation programs, investment in infrastructure, and solutions that ensure vibrant rural communities and a healthy planet. The coalition says farmers and ranchers are committed stewards of the land, leading the way to climate-smart farming by promoting soil health, conserving water, enhancing wildlife, using nutrients efficiently, and caring for their animals. ********************************************************************************************** Ag Groups Excited about New Sustainable Farming Coalition Farm groups that represent millions of farmers and ranchers across the country have come together to form a new coalition called Farmers for a Sustainable Future. It’s a coalition committed to environmental and economic sustainability. One of the ag groups is the American Soybean Association. Their CEO, Ryan Findlay, says, “Soybean farmers have an awesome story to tell, including their sustainability initiatives, so it’s great to be able to collaborate with like-minded organizations to facilitate sound policy and program decisions and have a platform to share our efforts.” The National Council of Farmer Cooperatives also joined the coalition. Chuck Conner, President and CEO of the NCFC, says, “This effort is important as policymakers at both the state and federal levels, and our partners in the value chain develop programs to reduce greenhouse gas emissions and address climate change.” National Cattlemen’s Beef Association Vice President of Government Affairs Ethan Lane says, “Twenty-one agricultural groups are now standing side-by-side in unity to correct a false narrative that’s haunted us for as long as I can remember.” The National Pork Producers Council says farmers and ranchers are “committed stewards of the land” and leading the way in climate-smart farming. ********************************************************************************************** Meat Import Containers Piling Up in Chinese Ports There are thousands of containers of frozen pork, chicken, and beef, all sitting in major Chinese ports because of the impact of the coronavirus outbreak. Bloomberg says transportation disruptions and labor shortages are slowing operations down drastically. People familiar with the situation tell Bloomberg that there aren’t enough truck drivers to pick up and move the containers due to travel restrictions imposed on the country to control the coronavirus. Ports are running out of electricity to help freeze the containers, while some ships have been told to move on to other destinations in mainland China or Hong Kong. China imports massive amounts of meat products from South America, Europe, and the United States. It’s been boosting purchases to help ease some of the shortages caused by the African Swine Fever outbreak that decimated its hog herds. Customs data shows that China boosted its imports of meat and offal by almost 50 percent last year to a record 6.2 million tons. It’s not known if or when port operations will be able to return to normal as truck drivers returning from other cities are quarantined for 14 days. Other transport restrictions on trucks also remain in place. ********************************************************************************************** China Offers More Tariff-Relief on U.S. Imports The University of Illinois’ Farm Policy News website says reports are surfacing that China is looking at purchasing some U.S. farm products by early March. The gesture would be intended to show the U.S. that it will meet its commitments outlined in the Phase One trade deal. The Chinese government is in discussions over what commodities it could potentially buy at the end of February or in early March. The purchases would show the U.S. that China intends to stick to the trade deal despite the impact of the coronavirus outbreak. Additional reports from Reuters show that China intends to “grant exemptions on retaliatory duties imposed on almost 700 U.S. products,” which would be the most substantial tariff relief to be offered so far. That would be the third round of tariff relief offered by China and comes after the Phase One trade deal officially went into effect on February 14. China has already been issuing tariff waivers on more of an ad hoc basis for U.S. farm products, including soybeans. The exemption announcement that came this week includes energy products like crude oil. ********************************************************************************************** Don’t Forget to Complete Census of Agriculture Special Studies The USDA’s National Ag Statistics Service continues to collect responses to the 2019 Organic Survey and the 2019 Census of Horticultural Specialties, both of which are special studies that take place every five years. The response window runs through March of this year. NASS is asking producers who received the questionnaires to respond online, by mail, or by telephone. “We are extending the deadlines for responses since we still have a steady stream of completed questionnaires coming in,” says NASS Administrator Hubert Hamer. “NASS produces the most comprehensive data about U.S. agriculture. Our record of accuracy is why NASS data continues to be used throughout the industry.” Hamer says the better response they get from the questionnaires means the better data they have to offer. “Responding to NASS surveys and censuses means contributing to the future,” Hamer adds. The resulting data will be used by commodity associations, agribusinesses, policymakers, researchers, Extension, and more. Producers who didn’t respond to the original deadline will receive a second questionnaire this month. ********************************************************************************************** CRP Signup Deadline Rapidly Approaching The USDA is reminding producers interested in the Conservation Reserve Program that the signup deadline is on February 28. The signup is available to farmers and private landowners who are either enrolling for the first time or re-enrolling for another 10-to-15-year term. Farmers and ranchers who enroll in the program get yearly rental payments for voluntarily establishing long-term, resource-conserving plant species, such as approved grasses or trees, which can control soil erosion, improve water quality, and develop wildlife habitat on marginally productive agricultural lands. The CRP has 22 million acres currently enrolled, but the 2018 Farm Bill lifted that cap to 27 million. The program is marking its 35th anniversary in 2020 with many milestones. It’s prevented more than nine billion tons of soil from eroding, which is enough soil to fill 600 million dump trucks. The program has also sequestered an average of 49 million tons of greenhouse gases, equal to taking nine million cars off the road.
| Rural Advocate News | Thursday February 20, 2020 |
Washington Insider: Growing Obesity Threat The New York Times science section recently featured a report that argued that climate change “is not the only source of dire projections for the coming decade.” The article was responding to “a predicted continued rise in obesity among American adults.” It featured projections from a prestigious team of medical scientists who conclude that “by 2030, nearly one in two U.S. adults will be obese, and nearly one in four will be severely obese.” The estimates are thought to be particularly reliable, NYT says because the team corrected for current underestimates of weight given by individuals in national surveys. In as many as 29 states, the prevalence of obesity will exceed 50%, with no state having less than 35% of residents who are obese, the team said. Likewise, it expects that in 25 states the prevalence of severe obesity will be higher than one adult in four and could become the most common weight category among women, non-Hispanic black adults and low-income adults nationally. Given the role obesity plays in fostering of many chronic, disabling and often fatal diseases, these are dire predictions indeed, the Times said. Yet it notes that “the powers that be” in the U.S. are doing very little to head off these potentially disastrous results. Well-intentioned efforts like limiting access to huge portions of sugar-sweetened soda, the scientists note, have been “effectively thwarted” by well-heeled industries able to dwarf the impact of efforts by health departments that have minuscule budgets by comparison. Claims that such taxes are regressive “and unfairly target low-income people” are shortsighted, according to Zachary Ward, public health specialist at Harvard and the lead author of the new report published in The New England Journal of Medicine in December. “What people would save in health care costs would dwarf the extra money paid as taxes on sugar-sweetened beverages,” he said told the press. Still, in “a city like Philadelphia,” where a soda tax of 1.5 cents an ounce took effect three years ago, total purchases declined by 38% even after accounting for beverages people bought outside the city, the report’s authors said. However, the report downplayed piecemeal policy changes like this as too small to make a significant difference in the obesity forecast for the country. Rather, nationwide changes are needed as the “food environment” has fostered a steady climb toward a weight-and-health “disaster”. NYT says that this health threat is relatively new and that since 1990, the prevalence of obesity in this country has doubled. This change is not from genetics, which have “not changed in the last decade,” Dr. Sara Bleich said. Rather, what has changed is the environment in which our genes now function. Food is super easy to access, said Bleich, a professor of public health at the Harvard T.H. Chan School of Public Health. “We eat out more, consuming more foods that are high in fat, sugar and salt, and our portion sizes are bigger.” “It doesn’t take that many extra calories to result in weight gain,” Dr. Bleich said. “Through marketing, we’re constantly being sold on foods we didn’t even know we wanted.” Unless something is done to reverse current trends, Ward said, “Obesity will be the new normal.” In addition, the study authors think that there is “no one thing to throw at the problem.” However, they point out that policies that reduce added sugars have reduced weight gains and health problems and that “when people drink their calories, they don’t feel as full as when they consume solid food, so they end up eating more.” With a third of meals now being eaten out, Dr. Bleich suggested that prompting restaurants to gradually reduce the amount of fat, sugar and calories in the meals they serve could help dampen societal weight gain. “Menus could make healthier, lower-calorie meals the default option,” she said. Controlling portion sizes is another critically important step. “Big portions are especially motivating for low-income people who reasonably want to get more calories for their dollar,” she said. Low-income groups already have the highest rates of obesity and, the new projections show, they are the groups most likely to experience a rising prevalence of obesity and severe obesity. “From a policy perspective,” Ward said, “prevention is the way to go. Children aren’t born obese, but we can already see excessive weight gain as early as age 2. Changes in the food environment are needed at every level, local, state and federal. It’s hard for individuals to voluntarily change their behavior.” So, we will see. Taxes are unpopular and face an uphill fight for acceptance, so education likely is the most acceptable policy choice. Whether or not warnings and nutrition education can effectively derail this trend remains to be seen, but it is a growing industry wide threat with potential implications for the food industry that should be watched closely by producers, Washington Insider believes.
| Rural Advocate News | Thursday February 20, 2020 |
Hormel to Stop Using Hogs That Are Fed With Ractopamine Hormel Foods announced it will no longer accept hogs that have been fed or exposed to ractopamine after April 1 as the company seeks to expand its ability to sell products to China. "We have been actively monitoring the changing global market dynamics for several years and believe this decision will further position us to meet growing international demand," Hormel said. Hormel uses third-party suppliers for its pork and does not have slaughter operations. Tyson Foods and JBS USA announced last year they would eliminate ractopamine from their supply chains for the same reason – they sought to boost exports to China which prevents the use of ractopamine for livestock. The move comes even as the phase-one trade agreement between the U.S. and China calls for China to undergo a risk assessment of ractopamine in cattle and hogs “as soon as possible without undue delay.” The risk assessment is to be done in consultation with the U.S. and “verifiable data and the approved conditions of ractopamine use in the United States.”
| Rural Advocate News | Thursday February 20, 2020 |
Caution: USDA Forecasts Ahead USDA’s Annual Outlook Forum will take place the next two days near Washington, D.C., and a lot of attention will be placed on a series of USDA forecasts that will come out today. The updates include the 2020 acreage expectations and price forecasts that will be delivered this morning by USDA Chief Economist Rob Johansson. Those will frame the supply picture for the 2020/21 marketing year, with those outlooks due Friday morning. The other important update will be the Outlook for U.S. Agriculture Exports which will provide USDA’s latest look for the dollar value of U.S. ag exports and imports for Fiscal Year (FY) 2020. The attention point will be on the how much USDA chalks up to the Phase One trade deal between the U.S. and China. USDA will have to acknowledge the deal in their forecast, particularly now that the deal is in effect. Then, USDA analysts on Friday morning will release their first run at the 2020/21 marketing year U.S. balance sheets. But the key to keep in mind on these forecasts relative to the Phase One deal is that the agreement is on a calendar-year basis, while the forecasts due over the next two days will be a mix. The trade forecast is on a FY basis – an October-September year – while the U.S. commodity balance sheets are on a mix of marketing years. Still, the data will provide some additional perspective on what USDA analysts expect to be a result of the Phase One deal with China.
| Rural Advocate News | Wednesday February 19, 2020 |
India Offers Concession on U.S. Farm Goods to Help Reach a Deal India is attempting to reach a trade deal with the U.S. before President Donald Trump makes his first official visit to the country on February 24-25. People close to the negotiations say the Indian government is open to greater market access for American farm and dairy products. India is willing to allow market access for U.S. products like cranberries, blueberries, pecan nuts, and avocados at lower duty rates. They’re also open to allowing imports of DDGs, the by-product of ethanol production used in animal feed and alfalfa hay. Even as the two nations attempt to have a deal in place before Trump’s visit, there aren’t a lot of details available as to when a new agreement might be ready. Negotiators are still working on the final details in an attempt to resolve some long-standing issues between the two countries. Bloomberg says even a partial trade deal with India that allows greater market access for U.S. farm goods is likely to help the president as he runs for reelection this year. He’s fresh off success with the “Phase One” deal with China, as well as the USMCA agreement, and the trade deal with Japan. ********************************************************************************************** GAO will Investigate Trade Aid Funds Distribution The Government Accountability Office is looking into President Trump’s $28 billion aid program for farmers that were hurt by trade disputes with other countries. The office is investigating allegations that the money was mismanaged and distributed unfairly. The New York Times says the investigation came about because of a request by Michigan Democrat Debbie Stabenow, who says she thinks the aid program was biased. She argues that the program provided more funds to southern states that voted for the president and that it favored large and foreign agriculture companies over small farmers. The administration says the aid program that began in 2018 will end this year. The program started as a $12 billion effort to help mitigate losses for farmers who faced lost sales because of retaliatory tariffs from China, the European Union, Canada, and Mexico, as a result of the trade war. The program grew to $28 billion last year as the trade war disruptions with China lingered. Critics have said the formula that was used to determine payments for certain crops were faulty, which meant funds went to multiple big corporations or large farms, instead of the smaller family operations. ********************************************************************************************** Hemp Farmers on Edge Because of Law Enforcement Requirements Hemp producers around the country feel they’re being treated like criminals. That’s because laboratories that test the crop must be certified by the Drug Enforcement Administration, something that has the country’s producers uneasy. USDA’s new hemp regulations say farmers have to ship some of their crops off to labs so that they can verify the crop doesn’t contain illegal amounts of THC, the mind-altering chemical in marijuana. If a hemp crop is found non-compliant, which would mean the THC levels are above .3 percent, it has to be completely destroyed under the supervision of a law enforcement officer. Eric Steenstra, President of Vote Hemp, tells Politico that law enforcement shouldn’t be involved unless there’s evidence of illegal activity, such as a farmer with a hemp license growing marijuana. Other critics worry that DEA lab certification will create a major bottleneck to testing, which must take place during a 15-day window before harvest. 44 labs in America can process hemp samples, but some states such as Alabama don’t have a single lab to take care of that kind of testing. ********************************************************************************************** Justice Department Looking Into Dairy Merger Dairy Farmers of America has reached an agreement with Dean Foods to purchase the bulk of Dean’s operations for $425 million. An Agri-Pulse report says that agreement will be contingent on approval from the Justice Department and a federal bankruptcy court. Dean filed for bankruptcy back in November. The company currently operates 57 facilities in 29 states, and under the agreement, Dairy Farmers of America would acquire 44 of those facilities. However, not everyone is happy with the agreement. “It would be awful,” says Peter Carstensen, a Law Professor at the University of Wisconsin. “This has the potential to hurt consumers because it would eliminate a lot of competition within the industry. At the same time, it will hurt dairy farmers.” Carstensen specializes in antitrust in agriculture, and he says Dean and DFA are some of the only milk processors in the Upper Midwest and New England. Bobbi Wilson, a government relations associate for the Wisconsin Farmers Union, says, “We don’t want to see a situation where DFA is the only buyer around.” The Justice Department will need to review the merger and has been in contact with Dean Foods about potential transactions, including a tie-up with DFA. Dean Foods says it believes the transaction would be “competitive and beneficial” for both farmers and consumers. ********************************************************************************************** Grain Glitch Could Cost Farmers, Cooperatives Money It’s been two years since the discovery of the “grain glitch” in the Tax Cuts and Jobs Act of 2017. A DTN report says farmer cooperatives are still asking Treasury Department officials to change provisions of Section 199A back to the way the tax deduction worked before the 2017 tax law was passed. The tax quirk that looked like a windfall for farmers who did business with cooperatives might now increase the taxes for at least some of those farmers who are patrons of more diverse cooperatives. Accountants and grain industry leaders discovered in early 2018 that the new tax law inadvertently gave farmers a potentially large tax break for selling their crops to farmer cooperatives instead of private elevators. Major private grain companies were faced with a possible large purchasing disadvantage. The grain glitch generated enough attention that Congress passed legislation to rework the tax deduction in a federal spending bill within a few months. Last summer, the Treasury Department began proposing that Section 199 deductions only apply to “patronage income.” That would eliminate cooperatives’ ability to combine “non-patronage income” as part of the deduction calculation. That exclusion of non-patronage income was never part of the original Section 199 regulations. ********************************************************************************************** Coronavirus a “Wildcard” in the Cotton Market too? The coronavirus in China represents a significant wildcard in the world’s cotton market. That comes from the 2020 economic outlook released at the National Cotton Council’s annual meeting in New Orleans. The coronavirus outbreak in China may mean delays in the Asian country’s ability to increase purchases in the near-term. The NCC says that it makes it hard to predict what 2020 buying may look like in the cotton market during the year ahead. The NCC is projecting planted acreage to be 13 million acres, 5.5 percent less than in 2019. The Hagstrom Report says the expected drop in cotton acres is a result of slightly weaker cotton prices relative to corn and soybeans. Export markets for cotton, like many other commodities, continues to be the primary outlet for the raw fiber shipments from the U.S. World trade is estimated to be higher in the 2019 marketing year. However, retaliatory tariffs and increased competition from other major exporting countries have led to a sharp drop in the U.S. share of the cotton market in China. However, despite the continued U.S. and China trade disruptions, the NCC says U.S. export sales to other markets have been very strong for the current crop year.
| Rural Advocate News | Wednesday February 19, 2020 |
Washington Insider: GAO to Investigate Farm Bailout Program The New York Times and others are reporting this week that the Government Accountability Office (GAO) is opening a review of the administration’s $28 billion bailout for farmers. The Times said that the review would look into allegations that the money was “mismanaged and allocated unfairly.” The investigation was requested by Senator Debbie Stabenow, D-Mich., who has frequently charged that the aid program was biased, providing more funds per-acre to farmers in southern states that voted for President Trump and favored “large and foreign agriculture companies over small farms.” The administration, which signed an initial trade deal with China last month, said the farm subsidies already were planned to end this year. The program began in 2018 as a $12 billion effort to mitigate losses for farmers who lost sales or faced retaliatory tariffs from China, the European Union, Canada and Mexico as a result of the trade war – and was expanded to $28 billion last year as the conflict with China festered. Critics have faulted the program for the formulas it used to determine payments for certain crops and for providing funds to big corporate farms, the Times said. The program used a “Depression-era fund that allowed farmers earning less than $900,000 a year to receive money if they produced one of the agricultural products that faced retaliation.” The government also purchased certain products to buoy key markets for products like apples, oranges and pork. “It’s clear that the administration’s trade assistance payments pick winners and losers rather than help the farmers who have been hit the hardest by this president’s trade policies,” Stabenow said in a statement late last week. She requested that the GAO study why payments disproportionately went to large farm operations, if the Agriculture Department was effectively preventing fraud, waste and abuse in the program and whether the model the USDA used to distribute payments accurately reflected trade damage that farmers experienced. Democrats have complained that the program paid subsidies to some farmers that did not need them while leaving those that were suffering from others damaged by the administration’s tariff policies without benefits. The GAO is a nonpartisan congressional watchdog that audits government programs. It notified Sen. Stabenow’s office in a letter transmitted on Thursday that it would take up the investigation. Democrats are not the only ones that have expressed concerns with the farm bailout program, the Times said. Senator Marco Rubio, R-Fla., joined with Senator Bob Menendez, D-N.J., and Representative Rosa DeLauro, D-Conn., in asking Sonny Perdue, the agriculture secretary, to investigate JBS, a Brazilian-owned meat-processor that received $67 million in bailout funds. Lawmakers also raised concerns about the payments given the company’s past legal problems, noting that in 2017 two of JBS’s former top executives, brothers Wesley Batista and Joesley Batista, pleaded guilty to corruption charges in Brazil. The brothers remain majority shareholders with control over the company. Rubio and Menendez also asked the Treasury Department to investigate possible ties that JBS has with the government of Nicolas Maduro in Venezuela, whom the United States does not recognize as the legitimate president. In a letter to DeLauro last month, Secretary Perdue said that he did not intend to ask his inspector general to open an investigation into JBS, noting that the Department of Justice and the Securities and Exchange Commission were already looking into the company’s practices. So, we will see. Farmers who saw export markets weaken as a result of the administration’s trade policies have long argued that they much prefer their accustomed access to growing developing country markets over government subsidies—which they charged fell substantially short of making up for the lost sales, although many producers reported that the program’s benefits were very much appreciated. Producers have long invested in overseas market development and have punished administrations for interventions that weakened those markets – in spite of efforts to offset impacts of the interventions. So, producers can be expected to add their criticisms to those turned up by the GAO—especially if the coronavirus weakens Chinese demand and undercuts its promises to purchase US farm products. These trade policy efforts are important and producers should watch them closely the “trade fight” proceeds, Washington Insider believes.
| Rural Advocate News | Wednesday February 19, 2020 |
EPA Discussing Court Case Impact on RFS with White House EPA is currently consulting with the White House and Department of Justice on the potential impact of the recent court ruling that three small refinery exemptions (SREs) granted by EPA in the 2016 compliance did not meet requirements under the Renewable Fuel Standard (RFS), according to a report from Reuters. The report said the decision would be made by March 9. The court ruled that the three in question did not meet the RFS law which they said requires that any SREs granted after 2010 have to be an extension. The agency aims to have an announcement by March 9, according to the report. "EPA and (the Department of Justice) are reviewing the decision and carefully considering its potential impact on the program," EPA spokeswoman Molly Block said in a statement. The number of SREs requested and granted by EPA has risen sharply in recent years and some of those SREs are potentially impacted by the court decision, with EPA Administrator Andrew Wheeler telling reporters recently that the action has the potential to impact the SRE process.
| Rural Advocate News | Wednesday February 19, 2020 |
China to Exempt 696 US Goods From Tariffs China will allow companies to apply for tariff exemptions on 696 US products as of March 2, with several ag products on the list, including pork, beef, soybeans, denatured ethanol, wheat, corn, sorghum some medical devices, cooper ore and concentrates, copper scrap, aluminum scrap and some pharmaceutical products and antibiotics. Crude oil, liquefied natural gas and several seafood products are also on the list of goods where importers can apply for the tariff exemptions. The announcement from the Ministry of Finance indicated the imports are still to be based on market conditions and companies can apply to have other products added to the list of goods that are eligible for tariff exemptions. The ministry will approve application within three working days. Buyers must get approval before their cargoes clear customs.
| Rural Advocate News | Wednesday February 19, 2020 |
Wednesday Watch List Markets Wednesday's reports start early with U.S. producer prices and housing starts due out at 7:30 a.m. CST. Weekly energy inventories are pushed to Thursday, due to this week's holiday schedule, leaving traders to notice the South American weather forecast and any trade news. Minutes of the latest Federal Reserve meeting will be released at 1 p.m. CST. Weather Wednesday will feature light snow in the western Plains, light rain along the Gulf Coast, and dry conditions elsewhere in primary crop areas. A strong arctic cold wave will spread across north-central areas, hindering transportation and bringing stressful conditions to livestock.
| Rural Advocate News | Tuesday February 18, 2020 |
Washington Insider: China and Future Trade Policies There is a lot of concern among global policy makers just now regarding what will happen next on trade, Bloomberg is reporting this week. The “broad policy direction for many of the world’s central banks and governments now hinges on one question: how will the Chinese government respond to the economic shocks caused by the coronavirus?” The report notes that the Communist Party’s elite Politburo has urged the nation to meet its economic targets this year, an imperative that could change the government’s recent reluctance to “fire up large-scale stimulus.” If this attitude translates into an all-out loosening of monetary policy and a ramp up in government spending, key trading partners that have been slammed by the hit to exports, supply chains, commodities and tourism may see that short-term pain followed by a rapid snap back. Such a potential economic shock is expected to dominate discussions at this week’s meeting of finance ministers and central bankers at a Group of 20 summit in Riyadh, Saudi Arabia. International Monetary Fund Managing Director Kristalina Georgieva on Friday suggested there may be a need for “synchronized or, even better, coordinated measures to protect the world economy.” Much depends on which levers China pulls, Bloomberg says. Near-term options include further cuts to central bank funding rates and more tax relief to hard-hit sectors as well as flush liquidity for the financial system. The emphasis for now remains on not over doing it, though there are signs the resolve is softening. The People’s Bank of China could further cut the proportion of deposits banks must hold as reserves. Local governments are being allowed to speed up bond sales to fund infrastructure like highways and health facilities. Real gross domestic product is now forecast to grow 5.8% this year, according to the median result in a Bloomberg survey, down from 5.9% last month. That would be the weakest in three decades. The main unknown is whether officials will really relax their rigid clampdown on borrowing in an economy where total debt is heading toward 300% of national output, making financial stability a political priority. “The key for China’s trading partners is not so much the composition of China’s stimulus but, rather, that the stimulus is tailored to reflect the features of the shock.” said Nathan Sheets, a former Fed official who is now chief economist for PGIM Fixed Income. However, Bloomberg also notes that China’s factories are vital links in the supply chains for multinational companies and that Hubei province, an industrial powerhouse with an economy the size of Sweden’s, remains in lock-down while a mix of curbs on factory production and travel remain in place elsewhere too, complicating the task of getting the economy back up to speed. HSBC Bank Plc economists led by Janet Henry estimate the hit to tourism revenue will be the biggest drag on Asia. They also highlight China’s role at the center of the global supply chain for electronics will delay a nascent recovery after a prolonged slump. The Asia-focused lender has cut its 2020 global GDP forecast to 2.3% from 2.5% on the back of the China effect. President Xi Jinping has stressed the hit to growth will be short term and has used opportunities like a half hour phone call with Malaysia’s Prime Minister Mahathir Mohamad to assure the fallout will be contained. Still, there is concern that because China is experiencing a supply side shock that’s upended production and distribution, a conventional stimulus such as lower interest rates or higher public spending may not be enough to turn things around, according to former IMF chief economist Olivier Blanchard. “The effects on the rest of the world are likely to be mostly through the disruption of supply chains and the effect on firms outside of China,” he said. “Much more so than the effect through lower exports to China, because of lower growth in China.” Governments across Asia are already gearing up to respond, observers say. For example, Koichi Hamada, an adviser to Japanese Prime Minister Shinzo Abe, said more fiscal stimulus will be needed if the fall out worsens. Singapore is seen as poised to roll out extra spending and Malaysia will announce stimulus next month while Indonesia plans faster spending, Bloomberg said. Globally, policy makers including those at the International Monetary Fund and the U.S. Federal Reserve say they are closely watching the virus fallout. Among emerging markets, Thailand, Malaysia and the Philippines have already cut their benchmarks and others may follow. That is why there’s so much focus on how China responds, Bloomberg thinks. “I would guess the global policy response will be 3/4 on Beijing and 1/4 by the rest of the world,” said Gene Ma, head of China research at the Institute of International Finance said this week. So, we will see. There remains a basic current of trade tensions among major competitors concerning the U.S. reliance on tariffs and potential impacts on U.S. competitiveness in global markets including those for manufactured products – as well as the concern that the fundamental impacts of the coronavirus outbreaks may be harder to shake than some expect. As a result, trade policy proposals and decisions will continue to be vitally important to producers and should be watched closely over the coming months, Washington Insider believes.
| Rural Advocate News | Tuesday February 18, 2020 |
Visit to India By USTR Lighthizer Now Not In The Cards Ahead Of Trump Trip President Donald Trump is to visit India this week, February 24-25, with some expectations that he could sign a trade deal during the trip. The expectation had been that U.S. Trade Representative Robert Lighthizer was to visit India ahead of Trump’s arrival to hold trade discussions. The two sides have held discussions over the last several weeks via teleconference. But it now appears Lighthizer’s visit may not take place. The Press Trust of India reported that an unnamed official said, "Lighthizer was supposed to hold discussions with [a] commerce ministry team but as of now, he is not coming." The official said there was no indication yet that a trade deal will be signed by Trump during his visit.
| Rural Advocate News | Tuesday February 18, 2020 |
White House Sends Nominations to Senate For EPA, Energy Posts The White House Thursday sent forward the nomination of Mark Menezes to Deputy Secretary of Energy. Menezes is currently Undersecretary of Energy and is the principal advisor on energy policy and emerging energy technologies. Prior to taking that role at DOE, Menezes was an executive with Berkshire Hathaway Energy in its Washington, D.C., office and while a staffer on the Hill was involved in the Energy Policy Act of 2005. The nomination of Douglas Benevento as EPA Deputy Administrator was also sent forward. Benevento currently serves as EPA Associate Deputy Administrator. Previously, he served as Senior Counselor for Regional Management and State Affairs, and as Region 8 Administrator for EPA. In the private sector, he worked on energy and environmental issues at Xcel Energy and practiced law at Greenberg Traurig, LLP. Benevento also served as executive director for the Colorado Department of Public Health and Environment, where he managed the State’s environmental and public health programs. Both agencies play a role in US ethanol policy and Menezes has experience on the Hill in terms of the initial law that set up the Renewable Fuel Standard (RFS).
| Rural Advocate News | Tuesday February 18, 2020 |
Tuesday Watch List Markets There is a scarcity of economic reports on Tuesday after the President's Day holiday. DTN will be watching for updated South American weather and harvest activity, along with any news on coronavirus (COVID-19), and especially news on China granting duty-free import licenses for U.S. soybeans and ag products. Weather Tuesday features additional rain in the Delta, Ohio Valley, and the Southeast, with continued flooding. The central U.S. will have several rounds of light mixed freezing precipitation and snow, causing some travel and safety issues. Conditions will be cold north and seasonal to above normal central and south. No polar vortex-related cold outbreak is indicated in the upper-level pattern.
| Rural Advocate News | Monday February 17, 2020 |
India Offers Dairy, Chicken Access in Trade Negotiations with the U.S. In a bid to land a limited trade pact with the U.S., Reuters says India has offered to partially open up its poultry and dairy markets. The offer comes as India readies for President Donald Trump’s first official visit to the country at the end of this month. No country produces more milk than India, which has traditionally restricted dairy imports to protect the livelihoods of the 80 million households involved in the industry. Last year, Trump suspended India’s special trade designation that dated back to the 1970s. That move came after India put price caps on medical devices, such as cardiac stents and knee implants, as well as introduced new data localization requirements and e-commerce restrictions. The U.S. is India’s second-largest trading partner, trailing only China. India has offered to allow imports of U.S. chicken legs, turkey, and produce like blueberries and cherries, while also cutting tariffs on chicken legs from 100 percent to 25. U.S. negotiators would like that cut to ten percent. The Indian government is also offering to allow some access to its dairy market, but with a five percent tariff and quotas. However, dairy imports would need a certificate saying they aren’t derived from animals that have consumed feeds containing internal organs, blood meal, or tissues of ruminants. ********************************************************************************************** Phase One Trade Deal Officially Takes Effect Not only was Friday Valentine’s Day, but it was also the first official day that the Phase One Trade Deal was in effect. Tariffs on both sides of the agreement officially began coming down. The coronavirus outbreak is causing concern about China meeting its obligations under the agreement. An Agri-Pulse report says U.S. experts are worried about whether ports, interior transportation, and soybean crushers are all operating at normal levels. However, industry sources and USDA data show that 1.6 million metric tons of U.S. soybeans were making their way across the Pacific Ocean and heading to China. The latest numbers show that 69,000 tons of soybeans left the U.S. and headed to China during the week of January 31st. During that same time frame, USDA reports showed net sales of 132,000 tons of soybeans to China for the 2019-2020 marketing year. The numbers show that soybeans are still going to China, even though information coming from out of China is almost non-existent. Officials point out that we still don’t know any specifics about how many purchases China will make under the Phase One agreement. Farm groups are looking for more specific information but don’t have any yet. ********************************************************************************************** Phase One Trade Deal Does Include Deadlines for China While much of the attention on the deal between the U.S. and China centers around concerns on China meeting its purchasing requirements under the agreement, there are some deadlines it has to meet. There are some deadlines for the U.S. to meet as well. Politico said on Friday that, within the next seven working days, the USDA’s Animal and Plant Health Inspection Service and China’s Customs Agency are required to sign a protocol to allow for the importation of U.S. potatoes. China is also required by February 24 to formally recognize the U.S. dairy safety system is as safe as its own, as well as allow imports of American pork that’s been inspected by the USDA Food Safety and Inspection Service. China is also required by March 14 to lift its ban on U.S. pet foods containing ruminant ingredients and to eliminate cattle age requirements for imports of U.S. beef and beef products. The two sides are also required by that same date to begin technical discussions intended to pave the way for China to import U.S breeding cattle. ********************************************************************************************** Stronger Farmland Values are Supporting the Farm Economy Strength in farm real estate markets provided support to the agricultural sector amid ongoing financial challenges. The Tenth District Survey of Agricultural Credit Condition from the Federal Reserve of Kansas City says non-irrigated cropland values and cash rents increased slightly in the fourth quarter of last year. Cash rents had been dropping since 2017 but rose slightly at the end of last year. Credit conditions in the District remained weak but deteriorated at the slowest pace in more than four years. Despite some signs of stabilization, geographic disparities persisted across the region. Land values were stronger on the eastern side of the District, while farm income and credit conditions were weaker on the west side of the district. Lower interest rates and reduced borrowing costs may have contributed to recent strength in the District’s farmland values. Demand for farmland remained strong in the fourth quarter of 2019, which could also have supported farmland values. Bankers who responded to the survey said that trade relief payments provided notable support to farm finances in 2019, but many also indicated that underlying weaknesses in the sector continued to be driven by low agricultural commodity prices. ********************************************************************************************** Midwest Bracing for More Flooding This Spring States that border the Missouri River are forecast to experience an elevated flood risk this spring. The National Weather Service says those conditions will only be made worse by already saturated soils and a lot of snow to melt. The NWS issued its first Spring Flood Outlook last week, saying Nebraska, Iowa, Kansas, Missouri, and eastern North and South Dakota all face an above-average flooding risk. It’s not good news as many of those areas are still trying to recover from devastating flooding last year that damaged levees and cost farmers millions in crop losses. The U.S. Army Corps of Engineers says they are “very concerned at this point.” An Associated Press report says even in places where the Corps was able to patch holes in some levees, the normal level of protection won’t be there because initial repairs haven’t been done yet to the full height of the levees. Officials say levee repairs will likely take up to two years to complete. Part of the challenge is the water remained so high in some areas that officials couldn’t even assess the full scope of damage until just recently. Many levees in Iowa and Nebraska have been patched but work hasn’t begun yet in Kansas and Missouri. ********************************************************************************************** Hemp Industry Executive Blames FDA for industry Challenges The Food and Drug Administration’s uncertainty over how to regulate the hemp industry is causing challenges that some companies can’t overcome. Warning letters to companies for selling products illegally has diminished big companies’ interest in hemp food products and made it difficult for processors to obtain working capital. Steven Bevan, president of GenCanna, says his Kentucky hemp processing company had to file for bankruptcy last week. “The FDA doesn’t have a pathway for accepting something that was an illegal product,” Bevan told attendees at the Crop Insurance and Reinsurance Bureau seminar on hemp. Crop insurers and companies that issue reinsurance are interested in hemp because the 2018 Farm Bill made it legal to grow the non-psychotropic relative of marijuana. There are three main hemp products, including fiber, seed, and flowers used to make CBD oil, which is used without FDA approval to treat a range of medical problems. In November, FDA warned consumers that it could not conclude CBD is safe for use in human or animal food, and it sent warning letters to 15 companies. Bevan called the FDA’s safety concerns “hogwash.” He says the FDA hasn’t ever removed a single CBD product from any store shelves. The result of the warning letters is that big companies are following their lawyer’s advice to say away from hemp.
| Rural Advocate News | Friday February 14, 2020 |
Tougher Trade “Firewall” Needed for Smaller Ag Sectors Senators Gary Peters of Michigan and Richard Burr of North Carolina are working on bipartisan legislation to give the U.S Commerce Department a greater ability to defend smaller segments of agriculture. Politico says the bill would give the department greater authority to “self-Initiate investigations” to help those less influential sectors combat potential trade manipulation. Peters says, “If you’re a big industry, such as the steel industry, you can hire an army of lawyers and economists to push back against unfairly subsidized trade by foreign governments. If you’re a smaller industry like cherries or blueberries or other agricultural products, it’s a lot more difficult.” Peters sent a letter to Customs and Border Protection this week, calling for an investigation into tart cherry exports from Turkey. He says shortly after the U.S. slapped duties on cherries from Turkey back in 2018, cherry exports from Brazil surged as much as 1,200 percent. He points out in the letter that “Brazil doesn’t appear to have a discernible tart cherry industry.” ********************************************************************************************** Past Mad Cow Scare Keeping EU Cautious During U.S. Negotiations A Reuters report says the Mad Cow Disease outbreak in the 1990s will likely keep the European Union from easing its strict rules on food safety. That caution will likely continue even though U.S President Trump is threatening to slap tariffs on car imports from the EU if the countries don’t start importing more U.S. farm products. European food and farming exports to the United States are worth $12 billion more than the imports the bloc brings in from the U.S. Ag Secretary Sonny Perdue told EU officials last month they should adapt food regulations to reflect “sound science.” However, Reuters says there is very little optimism that the EU will agree. Europeans remember the BSE outbreak and will not accept any lowering of its food standards. A trade specialist with the European Policy Center says no politician will support a trade deal that’s perceived as dropping those stringent standards. Trump has long complained the EU position on trade is “worse than China.” Earlier this week, the president said he’s setting sights on Europe, which raises the prospect of another trade war. ********************************************************************************************** January Ag Equipment Sales Mixed The first month of 2020 saw mixed results in the total number of U.S. tractor and self-propelled combine sales. Total farm tractor sales grew compared to January of last year while combines fell by 25 percent. That’s according to data out this week from the Association of Equipment Manufacturers. Total U.S. farm tractor sales increased 4.7 percent in January compared to last year while January self-propelled combine sales dropped 24.4 percent. Total sales of two-wheel-drive tractors grew in all segments during January by a total of 4.9 percent more than January of 2019. Sales of tractors with more than 100 horsepower led the way in sales growth, up 19.6 percent to 1,361 units. The total number of four-wheel-drive tractor sales fell 6.6 percent to 169 units sold. “The sales numbers we’re seeing for January are in line with our expectations,” says Curt Blades, Senior Vice President of Ag Services at AEM. “With the approval of the USMCA and the Phase One trade agreement with China, we believe we’re seeing some positive trends on the horizon for ag equipment sales.” ********************************************************************************************** Study Highlights Urban-Rural Divide Over the Environment Duke University’s Nicholas Institute for Environmental Policy Solutions issued a new study on the rural and urban divide over environmental issues. The study says rural voters have a deep distrust of the federal government, which explains their split with urban folks on environmental policy. The study says rural Americans matter a whole lot when it comes to the fate of U.S. environmental policy. After all, farmers, ranchers, and forest owners manage a huge part of America’s lands and watersheds. The study finds that 70 percent of rural folks express their support for conserving natural resources, while the same percentage of urban folks feel the same way. However, a stark contrast comes to light when each side is asked about the preferred level of government oversight on the environment. Forty percent of rural voters support less government oversight of the environment and conservation, while 47 percent of urban voters support more government oversight. “My hope is that this will help us understand how to engage with rural constituencies,” says Robert Bonnie, who led the study. “This data shows there is an approach to national climate legislation that empowers states and local government because folks seem more comfortable with that.” ********************************************************************************************** USDA Selects 30 Future Agricultural Leaders The USDA announced its selection of 30 college students who will attend the USDA’s 2020 Ag Outlook Forum as participants in the USDA Future Leaders of Agriculture Program. These undergrad and graduate-level students will take part in a weeklong trip to Washington, D.C., capped off with their attendance at the Forum on February 20-21. The USDA has hosted students in this program since 2007. The trip to the Forum, which is USDA’s largest annual meeting, gives students real-world learning opportunities in contemporary agribusiness, scientific research, and agricultural policy. The program selects 20 undergrads and 10 graduate students based on their written essays on agricultural careers and challenges. During their visit to D.C., students will take part in a USDA briefing and discussion of career opportunities with agriculture leaders in academics, government, and industry. They will also tour the nation’s capital, attend the Forum, and will meet with Ag Secretary Sonny Perdue. The Future Leaders in Agriculture Program is supported by academic institutions, corporations, and government institutions dedicated to promoting the education of the next generation of agriculture. ********************************************************************************************** NASS Making Changes to its Crop Reporting The USDA’s National Agricultural Statistics Service will be making changes to its county-level reporting. More specifically, there will no longer be county-level estimates for dry edible beans, flaxseed, hay (alfalfa and others), as well as potatoes, sugar beets, sugarcane, sunflowers (non-oil and oil varieties), and tobacco. Additionally, NASS will discontinue county estimates based on irrigated or non-irrigated practices for all crops. These changes are effective beginning with the 2019 crop year. The reason for the changes is the lack of funds. The data collection cost for the surveys that the agency uses to gather the data for county-level numbers had been partially funded through a cooperative agreement, which was not renewed. As a result, NASS says it has to adjust its county estimates program to reflect the lower level of funding available. NASS took public comments and reviewed the feedback before deciding to discontinue these estimates. Future NASS reports will still be available at www.nass.usda.gov/Publications.
| Rural Advocate News | Friday February 14, 2020 |
Washington Insider: Administration Proposes to Slash Chesapeake Bay Funding Again The president’s Fiscal Year (FY) 2021 budget proposal went to Congress this week and, as expected, it would largely wipe out federal funding for the Environmental Protection Agency’s Chesapeake Bay Program, the Washington Post said this week. The partnership effort includes six states and the District and aims to clean up and restore the Bay. It has been underway since 1983. The popular program, which received $85 million this year, would be reduced to $7.3 million next year—the fourth year in a row the administration has proposed to cut it sharply. While the proposed cuts shouldn’t have been a surprise since they have been an annual feature of recent administration proposals, but Will Baker, president of the Chesapeake Bay Foundation, said the number still came as a shock. “This is a program that for years has truly enjoyed broad bipartisan support,” he said. “So it makes you ask yourself, what statement is the President trying to make?” Such a dramatic decrease of support would threaten the ecosystem’s steady yet fragile recovery, Baker argues. However, he doubts that the final budget will look the way the administration has envisioned. Last year, the proposed cut also was 90%, as it was the year before – and the year before that, the proposal was to eliminate the federal contribution altogether. Members of Congress who support the bay recovery effort have regularly rejected the president’s proposals and restored funding. Environmentalists and lawmakers have said they expect a similar response this year. But, as always, “there are no guarantees,” the Post said. Scientists say the Chesapeake Bay is the healthiest it has been in generations. The ecosystem is showing signs of resilience and recovery unseen for decades, and even after record-setting 2018 rainfall resulted in a D-plus grade on last year’s annual report card, most metrics now indicate the estuary is continually improving. Fishermen and environmentalists have logged sightings of species, including bottlenose dolphins, that had vanished. Signs of natural resilience and recovery — like thriving underwater grass beds and growing oyster reefs — have returned. Many who work along the estuary use the same metaphors to demonstrate its growth: The Chesapeake Bay, they say, is like a sick patient in the early stages of remission. Why would you stop the patient’s supply of lifesaving medicine when it seems the treatments are working? The program’s six states and the District have committed to meeting environmental goals, such as improving fisheries, increasing public access and limiting pollution in the bay to target levels by 2025. The restoration plan is outlined in the Chesapeake Bay Watershed Agreement. Maryland Gov. Larry Hogan issued a public call for the president to reverse course and support the restoration effort--for which he has committed more than $350 million in his budget proposal. “Maryland is leading the charge to safeguard the Bay — we are simply asking our federal partners to keep up their share,” Hogan said. “At his confirmation hearing, the EPA administrator said: ‘I am very much committed to the Chesapeake Bay and the Chesapeake Bay Program.’ Instead, the administration recklessly and repeatedly proposes gutting Chesapeake Bay funding.” Hogan, who chairs the Chesapeake Executive Council — a regional commission that consists of governors of the six states along the Chesapeake watershed, the District mayor, the EPA administrator and chair of the Chesapeake Bay Commission — added that the effort to protect the bay has long been bipartisan. However, not every state has been so diligent. For example, Pennsylvania, which does not border the Chesapeake but contributes a significant amount of agricultural pollution via the Susquehanna River, recently released a bay cleanup plan that underfunds by $300 million a program to help farmers adopt anti-pollution practices. The Chesapeake Bay Foundation last month announced it intends to sue the EPA over its refusal to cooperate with mandatory Obama-era environmental programs – including those that decrease runoff and aid restoration efforts. Maryland and Virginia also are considering suing the EPA in an effort to compel it to change course. “With this continued lack of support from the White House, it is all the more important that state practices and programs and funding all come through to help this restoration effort,” Baker said. “It’s very disturbing to see such a broad-based attack on the very fundamental and environmental principles of our nation.” So, we will see. Clearly, support is strong for this program but so is the opposition in some cases. It is an effort that affects many producers directly and which should be watched closely as the funding fight continues, Washington Insider believes.
| Rural Advocate News | Friday February 14, 2020 |
Farm Credit Administration Official: Too Early To Make Call On More Farmer Aid The CEO of the Farm Credit Administration is “cautiously optimistic” the financial picture for agriculture could improve this year as trade agreements enter into force and interest rates are expected to remain low. “It may take patience, but at least the groundwork has been laid for trade normalization and improved farm prices,” Glen Smith told the House Agriculture Appropriations Subcommittee. He said that means it is “too early” to know if there should be 2020 Market Facilitation Program (MFP) effort. Smith and Jeffery Hall, a Farm Credit Administration board member, appeared before the subcommittee regarding the independent agency’s Fiscal Year (FY) 2021 budget request of $81 million. In the third quarter of 2019, Smith said the share of adverse loan quality was 7.4% compared with data from the Farm Credit System putting that at 6.6% at the end of 2018. Nonperforming loans for the third quarter remained below one percent while delinquent loans were at 0.3%.
| Rural Advocate News | Friday February 14, 2020 |
US Officials Comment on China Phase One Status The U.S. has not yet received anything from China that the country expects to delay its purchases of U.S. ag goods under the phase-one trade agreement due to the coronavirus situation, according to USDA Undersecretary for Trade and Foreign Agricultural Services Ted McKinney. “We have not received any formal notification of a delay, which pleases me,” McKinney said in Houston, Texas, at an ethanol event. “We hope it does not come.” The length of the coronavirus situation will be important, McKinney said, particularly if it impacts shipping and other economic activities. “I suspect it will be determined by how long the issue goes on,” he noted. He also expressed a hope China would deploy additional tariff reductions to help meet the purchase commitments. “They made the commitment and it will be difficult to meet that commitment with the current tariff schedule and conditions in place,” he said. Meanwhile, Treasury Secretary Steve Mnuchin told lawmakers during a Senate Finance Committee hearing on the Fiscal Year 2021 budget that with the coronavirus situation in China, implementation of the phase one deal “to a certain extent slowed down.” Despite the statement by McKinney, there is the full expectation that China will request consultations, likely in March, on the issue of delaying their purchase commitments of U.S. ag goods.
| Rural Advocate News | Friday February 14, 2020 |
Friday Watch List Markets Economic reports out early on Friday morning are retail sales, industrial production and consumer sentiment index, which could all give a glimpse into the health of the economy. We will also be watching for any news regarding coronavirus, Chinese soybean buying and any weather changes in South America. Weather Dry conditions will cover all primary U.S. crop areas Friday. Precipitation will be confined to light snow in the Canadian Prairies. Bitter cold will be noted in the northern and eastern Midwest. Snow and rain return to the northern crop areas Sunday and Monday.
| Rural Advocate News | Thursday February 13, 2020 |
Beijing Asks World for Trade Calm Amid Coronavirus Outbreak The U.S. and several of the world’s major trading powers are dealing with uncertainty surrounding China. Politico says the spread of the coronavirus has killed hundreds of people and sickened tens of thousands in mainland China. However, at the World Trade Organization gathering in Geneva (Juh-NEE-vah), Chinese officials were quick to “flex their economic muscles” and remind other officials from countries around the world about China’s contributions to worldwide growth. Federal Reserve Chair Jerome Powell told a House panel this week that the coronavirus will “very likely” affect the U.S. economic growth, but it’s far too early to predict what kind of impact it will have. He also says the central bank doesn’t see any need to adjust interest rates right now as U.S. manufacturing has weakened over the past year. The outbreak is putting a damper on speculation that China will be able to meet the obligations it agreed to in the Phase One Trade Deal with the U.S. China’s Ministry of Agriculture says the country may have to delay its purchases of $40 billion due to the outbreak, but also says it will fulfill its commitments within a year. ********************************************************************************************** U.S./EU Bracing for Potentially Rough Trade Negotiations Fresh off a phase one trade deal with China, U.S. President Donald Trump has his sights on a new deal with the European Union. The president wants to restructure the over $1 trillion U.S. trade relationship with the European Union. Reuters says that’s already raising the specter of another major trade war as the global economy is slowing. Trump has long complained that the EU position on trade “is worse than China’s.” Trump says, “Europe has been treating us very badly. Over the last 10 to 12 years, there’s been a tremendous deficit with Europe. That have incredible trade barriers, so we’re going to be starting with that.” Meantime, EU officials say they are willing to work with the U.S. president to address some of the challenges in the relationship. A German conservative lawmaker tells Reuters that Trump needs to remember the EU and the U.S. are “evenly matched” in the economic realm, and that they will defend themselves if the need arises. EU officials say, “We will respond to U.S. tariffs, and we know how to structure them to be effective.” Reuters says there may be a “mini-deal” like the Phase One agreement signed with China. However, that likely won’t solve the main issues that would allow both sides to declare a truce. ********************************************************************************************** EU Strikes Trade Deal with Vietnam European Union lawmakers overwhelmingly approved free trade and investment deals with Vietnam that will eliminate almost all tariffs over the next decade. The website U.S. News Dot Com says the deal is expected to give the EU a competitive foothold in an important overseas market for the United States. European legislators voted 401 to 192 in favor of striking the deal. The EU hopes the deal will bring in 15 billion euros, or $16.5 billion, in additional exports from Vietnam to the continent by 2035. They also expect EU exports to Vietnam will jump by more than eight billion euros to an annual level of 22 billion euros. Vietnam sends a lot of telecommunications equipment, food, and clothing to Europe, while the EU sends machinery, transport equipment, chemicals, as well as agricultural products to the Asian nation. EU officials say the deal is all about strengthening economic ties to Vietnam amid fierce competition from the U.S. and China within that marketplace. Once adopted by lawmakers, the deal needs to be approved by the EU council and ratified by all 27 member nations to go into effect. ********************************************************************************************** Study says FCC Underestimates Number of Americans without Internet A report issued by BroadbandNow Research says the number of Americans that are without internet service is 43 million. The Hagstrom Report says that’s double the estimate of 21.3 million from the Federal Communications Commission. The report also says the problem is worse than the FCC says it is in rural America. They say the discrepancy occurs because the FCC relies on semi-annual self-reporting by Internet service providers using the FCC-mandated Form 477. If an ISP offers service to at least one household in a census block, then the FCC counts the entire census block as covered by that provider, even if the rest of the block doesn’t have service. BroadbandNow Research says it examined the magnitude of this flaw by manually checking internet availability using FCC data as the source of truth for randomly selected addresses. BroadbandNow Research says it believes that “provider reporting on address-level availability is the best and most transparent way to understand and quantify the digital divide.” They also believe that FCC reporting should be timelier. FCC Form 477 data typically comes out to the public about 12-18 months after the ISPs file their required reports. ********************************************************************************************** December U.S. Pork Exports Set a Record to End 2019 U.S. pork exports finished up 2019 on a good note, setting records for both the dollar value and total volume. The U.S. Meat Export Federation compiled USDA data and found that 5.89 billion pounds of U.S. pork and pork variety meats were exported to countries around the world. The volume was a 10 percent jump over the previous year, while the value came in at $6.95 billion, up nine percent over 2018. Pork exports accounted for almost 27 percent of total U.S. pork production in 2019. Export value per head averaged $53.51, up four percent of 2018. “China was the main driver for the record-breaking pace of U.S. pork exports during the last year,” says David Newman, president of the National Pork Board. “We are poised to help China fill its protein gap caused by the recent African Swine Fever outbreak.” He also says that the U.S. pork industry is focusing on recapturing lost market share with key customers and investing in research to develop emerging markets. While exports to China were higher last year, key customers like Japan and Mexico, the number one export markets in terms of value and volume, respectively, saw significant drops as the U.S. negotiated new trade deals with each country. ********************************************************************************************** NACD Elects Next President The National Association of Conservation Districts’ Board of Directors has elected Michael Crowder of Washington as the association’s president-elect. “Michael epitomizes conservation, both in his leadership at the national level and on the ground on his operations in Illinois, Indiana, and Washington state,” says current NACD President Tim Palmer. “Having worked with Michael closely for several years on the NACD officer team and board of directors, I’m confident he’s well-suited to champion locally-led conservation in the years ahead.” Crowder will serve a one-year term as president-elect alongside Palmer. Crowder was first elected to the NACD Officer Team in 2017 as the second vice president and previously served on the organization’s Board of Directors as the Washington state delegate. “Locally-led conservation is the backbone of conservation delivery,” Crowder says. “It’s an honor to be selected by my fellow district officials to represent and advance conservation work at the national level for farmers, ranchers, and fellow conservationists.” Crowder will be sworn in as the next president in February of 2021.
| Rural Advocate News | Thursday February 13, 2020 |
Washington Insider: Coronavirus Impacts and the EU The media is focused heavily on the potential impacts of the coronavirus this week, especially on the European Union – in spite of the fact that only scattered cases of the virus have appeared in Europe, the New York Times says. One key reason for concern is the fact that the disease is proving very difficult to quarantine. As a result, the European impact “may be severe enough to push the vulnerable German economy, and perhaps the entire eurozone, into recession,” the Times says. The report notes “the concerns of a growing number of economists” as it becomes clear that it will take weeks, at best, before the Chinese economy resumes its role as a prolific exporter of essential factory goods. In Germany, the chief executive of Daimler, one of Germany’s most prominent companies with several plants in China, said the crisis is one of uncertainty. “I’m calling China every day,” Ola Kallenius said at a news conference on Tuesday. “It’s too early to say if and how other factories could be affected. We are talking about global networks.” The rest of the world also could suffer economically, Fed chair Jerome Powell, warned U.S. lawmakers on Tuesday. We are closely monitoring the disease “which could lead to disruptions in China that spill over to the rest of the global economy,” Powell told House Financial Services Committee members. A dismal profit report by Daimler on Tuesday underlined why it would not take much to shove the 19 European countries that use the euro into a downturn that could exacerbate a slump in global trade that was apparent long before the coronavirus claimed its first victims. Daimler said that it slipped into the red at the end of 2019, battered by the cost of adjusting to new technologies and by its penalties from diesel emissions cheating. Vehicles are Germany’s biggest export, and economists are predicting that official data to be published Friday will show that the German economy shrank in the fourth quarter of 2019 because of a slump in manufacturing. The problems of German automakers “reverberate around the continent” because so many small and midsize parts suppliers depend on them for sales. Italy’s economy shrank in the fourth quarter in part because its industrial north is closely linked to Germany. “For most countries, Germany is the most important trading partner,” said Carsten Brzeski, chief economist at ING Germany. “If it starts to slow down, other countries will feel it.” Daimler reported a quarterly loss of 11 million euros compared with a profit of 1.6 billion euro in the fourth quarter of 2018. The evaporating earnings put Daimler, the maker of Mercedes-Benz cars and trucks in a weak position as it confronts the economic consequences of the coronavirus outbreak. Auto factories and others are being shuttered longer than planned after the Lunar New Year holiday and people also are being kept out of showrooms. On Monday, Daimler said it had begun gradually ramping up production at its Chinese factories, but that the situation remains tense and unpredictable. There is widespread concern that assembly lines around the world could be forced to shut down for lack of components made in China. China also has become a critical market for all German carmakers--it sold nearly 700,000 Mercedes-Benz cars in China last year, more than twice as many as it sold in the United States. For the full year, net profit at Daimler plummeted 64% to 2.7 billion euro. Sales in 2019 rose 3%, to 173 billion euro. “The coronavirus provides a substantial risk for the expected global recovery, as hopes were pinned on an improvement of the Chinese economy,” Stefan Schneider, an economist at Deutsche Bank, said in a note to clients on Tuesday. A recession in Germany early this year is “quite probable,” he added. Ziehl-Abegg, a German maker of industrial fans, has a factory in Shanghai with 450 workers. Even after the factory was allowed to reopen this week fewer than half of the employees reported to work. Many were ordered to stay home because they had visited affected areas of China during the Lunar New Year. German machinery makers like Ziehl-Abegg are coming off a “terrible” year. New orders for products like machine tools or construction machinery slumped 9% in 2019 because of the trade fight with the U.S., Brexit and auto industry woes, the Times said. “The political turmoil created uncertainty and uncertainty is poison for investment,” said Olaf Wortmann, economist for the Mechanical Engineering Industry Association in Frankfurt. Now, the coronavirus outbreak is another blow. In addition, Daimler, like Volkswagen, faces significant accusations that it programmed diesel vehicles to cheat on emissions tests. It said this week that it had set aside 4 billion euro for the year to cover the cost of legal proceedings and penalties in Europe, the United States and elsewhere. Daimler’s legal problems are amplified by the industry’s biggest shift in technology in a century. Like other carmakers, Daimler must invest billions in electric cars and autonomous driving, or risk becoming irrelevant, the Times said. So, we will see. Clearly, the virus is shocking the industrial world in unexpected ways and creating trends that should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday February 13, 2020 |
Trump Administration Issues Report On Countries’ Trade Status The Trump administration issued a notice Tuesday that denies developing country status to nations the administration deems “wealthy” and says has “abused” special and differential trade treatment under World Trade Organization (WTO) rules. Among the countries excluded under the administration action are China, Brazil, India, Indonesia, Malaysia, Thailand and Vietnam. The criteria included gross national income per capita exceeding $12,375 or the country's share of world trade. WTO rules on subsidies permit developing or least developed countries a higher threshold before rules against subsidies would apply to their exports. The notice included a list of least-developed and developing countries that still enjoy special status under U.S. law, including Bangladesh, Kenya, Cambodia, Honduras, Pakistan, Zimbabwe, Ecuador, Egypt and El Salvador.
| Rural Advocate News | Thursday February 13, 2020 |
USDA IG to Assess MFP Process USDA Inspector General Phyllis Fong told lawmakers Tuesday her office is reviewing USDA’s authority to provide more than $20 billion in direct payments to producers without an appropriation from Congress via the Market Facilitation Program (MFP). She also said they will look at questions on whether the aid is unfairly tilted to certain states and commodity groups. “We are going to start out with the basic issue of authority for the programs, and then we are going to get into the design and implementation, eligibility and look at the producer questions,” Fong said at a House Appropriations subcommittee hearing. “The first piece of our work should be coming out in the next several months.” Senate Ag Committee Ranking Member Debbie Stabenow, D-Mich., has complained repeatedly the aid is tilted to southern states based on the per-acre payments via the 2019 MFP effort (MFP 2) while USDA continues to point to the totals received by states in the Midwest, with Iowa, Illinois, Texas, Minnesota and Kansas receiving the most. As of February 10, USDA said that $14.23 billion has been paid out under MFP 2.
| Rural Advocate News | Thursday February 13, 2020 |
Thursday Watch List Markets At 7:30 a.m. central, the weekly jobless claims, consumer price index and Core CPI readings will be out. We will also be watching export sales at the same time, and any new flash sales reported by USDA at 8 a.m. We will also look for any news on China and South American weather. Weather Snow will end in the Midwest during Thursday, and this week's heavy rain in the Delta and Southeast will let up ahead of the weekend. A new storm system forming in the Northwest for the weekend will begin spreading rain and snow into the northern U.S. by Tuesday. Conditions will continue very cold in northern areas ahead of moderation at the end of the week.
| Rural Advocate News | Wednesday February 12, 2020 |
Border Ag Inspector Bill Headed to President Trump The House of Representatives passed a bill that authorizes funding for more agriculture inspectors to work with U.S. Customs. The Hagstrom Report says the House passed the legislation, known as the Protecting America’s Food and Agriculture Act of 2019 after it had already passed the Senate. “I’ve long raised the issue of inadequate staffing levels at the border,” says House Ag Committee Chair Collin Peterson. “It’s critical that we have enough CBP agriculture inspectors, specialists, and canine teams to protect our rural communities and our economy from foreign animal and plant pests and diseases.” A joint press conference featuring several representatives from agricultural states expressed happiness that the bill made it through both chambers of Congress. The legislation authorizes the hiring of 240 new agriculture specialists and 200 agriculture technicians until staffing shortages are resolved. It also assigns 20 agriculture canine teams to prevent harmful pests and foreign animal diseases from getting into the United States. During the press conference, the lawmakers pointed out that the country faces a shortage of agricultural inspectors that could leave the U.S. ag industry vulnerable to diseases, pests, and other threats that could potentially devastate the American economy and affect the health and safety of millions of American people. ********************************************************************************************** Agriculture will be Involved in U.S.-UK Trade Negotiations Agricultural tariffs, as well as non-trade barriers, will be a part of pending trade discussions between the United States and the United Kingdom. An Agri-Pulse report says that comes from two government officials in the United Kingdom who didn’t want to be named because the negotiations haven’t started yet. Over the next year, topics of conversation between the two nations will include everything from tariffs on U.S. grains to how GMO’s will be handled going forward. The U.K. officially broke away from the European Union on January 31, but Britain is still technically in the European customs union until the last day of 2020. Between now and then, the British government plans to work on trade agreements with the U.S. and the EU at the same time. British officials spoke to reporters this week and say they know just how important U.S. agriculture is in Washington, D.C., these days and any free trade agreement that doesn’t include U.S. agriculture will likely not get through Congress. The U.S. is working on separate trade talks with the EU, which has held firm for over a year that agriculture will not be a part of the negotiations. ********************************************************************************************** Tariffs Take a Big Two Year Toll Consumers took a big financial hit from two years of trade wars with U.S. trading partners. The tariffs cost consumers $50 billion since February of 2018. That data comes from the Tariffs Hurt the Heartland campaign. For example, in December of last year, Americans paid an extra $6.3 billion in duties, compared to $2.6 billion in December of 2017, just weeks before the trade disputes began to ramp up. While President Trump has had recent success in partial trade deals with Japan and China, among others, Tariffs Hurt the Heartland says work still remains to get things where they should be on the trade front. “Make no mistake, this trade war is as active as it was in December,” says Brian Kuehl (Keel), co-executive director of Farmers for Free Trade. Tariffs Hurt the Heartland also released specific impact data for states like Florida, Michigan Ohio, Pennsylvania, and Wisconsin, all of which are critical states that Trump will need to win in the November election to get a second term in the Oval Office. Those five states have paid an additional $7.6 billion in tariffs because of the trade disputes. Speaking of trade, the U.K. departure from the European Union is two weeks old, but there’s no start date for trade talks between Washington and London. ********************************************************************************************** USDA Releases February WASDE Report The February World Ag Supply and Demand Estimates call for minimal changes in corn projections and increased soybean exports. The 2019/2020 U.S. soybean outlook is for increased exports and lower ending stocks. Soybean exports are projected at 1.825 billion bushels, up 50 million from last month, partly reflecting more imports from China. Soybean crush is unchanged, which means ending stocks drop 50 million bushels. The season-average soybean price is forecast at $8.75 per bushel. This month’s corn outlook isn’t much different than last month, with offsetting changes to exports and corn used for ethanol. Exports are lowered by 50 million bushels this month, reflecting a slow shipment pace through January. The offset is a 50 million bushel increase in corn used for ethanol. The season-average corn price projection is unchanged at $3.85 per bushel. The wheat outlook for 2019/2020 is calling for stable supplies, increased exports, and decreased ending stocks. The only change in supply or use this month was a 25 million bushel increase in exports, reflecting growing competitiveness in the international marketplace. Ending stock were forecast at a five-year low of 940 million bushels. ********************************************************************************************** NPPC: FDA Stalling Hurts Agriculture The U.S. Food and Drug Administration is misrepresenting a gene-edited livestock research project and the National Pork Producers Council says that’s a stalling tactic. The pork producers say the stalling is designed to rationalize a regulatory grasp on an emerging technology that must be regulated by the USDA if the United States is to maintain its global leadership spot in agriculture. “While countries like China, Canada, Brazil, and Argentina, are moving quickly on this advancement to gain competitive advantage, the United States is falling far behind because of the FDA’s precautionary regulatory approach,” says David Herring, NPPC President. “Under FDA regulation, gene editing faces an impractical, lengthy, and expensive approval process. If we don’t move oversight to the USDA, we’re ceding a technology that promises significant benefits to animals, including immunity to disease and a reduction in antibiotic use.” They also say the process jeopardizes thousands of American jobs. To date, NPPC says the FDA hasn’t responded in a meaningful way to the comments they received concerning the ramifications of their proposed regulatory process. ********************************************************************************************** World Pork Expo Returning in 2020 The 2020 World Pork Expo is set for June 3-5, its 32nd year at the Iowa State Fair Grounds. The expo provides pork professionals with three full days of education, innovation, and networking. “We’re excited to welcome all members of the pork industry back to Des Moines after a brief hiatus last year,” says NPPC President David Herring. “The 2020 Expo allows us to reconnect across the industry and share knowledge, as well as discuss the state of the industry together.” As a precaution, the 2019 World Pork Expo was canceled due to the outbreak of African Swine Fever in China and other countries. Pork industry professionals worked together across the globe to get a handle on the situation and evaluate risks associated with ASF. Since the outbreak began last year, the U.S. has stepped up biosecurity measures to prevent an outbreak in the United States. The 2020 Expo will have increased biosecurity on-site during the show. Additional changes to the 2020 show include relocating the live swine show to reduce an already negligible risk. “Continuing to host the show for our more than 20,000 producers and pork professionals visiting from across the country is extremely important to us,” Herring adds. Registration to attend the World Pork Expo will soon be available online.
| Rural Advocate News | Wednesday February 12, 2020 |
Washington Insider: New Federal Reserve Fight The Hill is reporting this week that the President’s latest effort to reshape the Federal Reserve faces a new test as senators grill a controversial pick for the bank’s board of governors. The nominee this time is Judy Shelton, a former Trump campaign adviser. The Hill calls her views “unconventional” and wonders whether they will disqualify her for Board membership. The nomination is considered the President’s most viable chance to place an ally within the Fed after Senate Republicans rejected his past two picks, economist Stephen Moore and Herman Cain--who were both seen as sharp critics of the bank. Now, The Hill says that Shelton “can expect similarly tough scrutiny.” Like the President, she blasted the Fed during the Obama administration for keeping low interest rates but reversed course soon after the 2016 election. Recently, she has echoed Trump’s calls for near-zero interest rates and questioned the bank’s independence as the president continues to push for lower interest rates. Shelton has defended her changed stance since the administration first floated her nomination in July. She argues that she has always been critical of the Fed. However, her reversal on monetary policy has raised questions about her ideological integrity and whether she’ll prioritize the Fed’s legal mandate over the President’s political prospects. “What her actual ideological beliefs are does matter,” said Brandon Barford, a former Republican Senate Banking Committee aide from 2006 to 2009. “Is she being an opportunist, or has she truly changed her policy beliefs?” And a position on the Fed board would make her the front-runner to take over the Fed if Trump attempts to oust its current chairman, Jerome Powell, The Hill says. “That’s why it’s a lot more serious to vote for her than most Republican senators are giving credit to,” Barford said. Shelton will appear before the Banking panel with Christopher Waller, executive vice president of the Federal Reserve Bank of St. Louis, who was nominated in tandem with her. While Waller is expected to easily pass muster with the Committee, Thursday’s hearing will give the first indication of whether Shelton’s candidacy could be derailed by her controversial record. Democrats are expected to unanimously oppose her nomination, which means the opposition of just four Republicans could quash her nomination. Shelton has already been confirmed by the Senate as the U.S. director of the European Bank for Reconstruction and Development—a fact that suggests that strong opposition to her nomination likely would have surfaced already if that was in the cards. Republicans have also expressed concern over Shelton’s decades of support for tying the U.S. dollar to gold, creating a global currency union and rejecting deposit insurance at American banks. For example, “There are a lot of questions about her,” Sen. Richard Shelby, R-Ala., a former Banking Committee chairman, told the press. “I have a few, but I’m not the only one.” Her views about a gold-linked currency and fixed exchange rates are well beyond the current economic mainstream in either party, Barford a former Shelby aide, said. He recalled receiving letters from Shelton’s Sound Money Project that fell flat among the GOP staff. No one was sending us anything like that and the idea of even calling her as a witness for something was beyond the pale,” he said. Trump’s previous efforts to put Fed critics on the bank board faltered but some Republicans now appear reluctant to reject yet another pick. For example, Sen. Kevin Cramer, R-N.D., who sank Cain’s potential Fed nomination, announced his support for Shelton and Waller after meeting with both last week, calling the two “well qualified.” And even some of Trump’s biggest critics from the right have voiced support for Shelton’s confirmation despite differences of opinion on core aspects of monetary policy. “She would be a good addition to the group that’s there,” said J.W. Verret, a George Mason University banking law professor and former Trump transition aide who backed the president’s impeachment. “I disagree with her views on interest rate policy and Fed independence but she’ll be one vote of 12, and I think a variety of views should be presented.” “Confirming her as a governor would open the door to that possibility, and to her efforts to fundamentally transform how we do monetary policy in a way that I think is anathema to most Republican senators, let alone most Americans,” said Sam Bell, policy director at Employ America, which advocates for Fed policy intended to maximize employment Bell warned of the high stakes involved in Shelton’s nomination. “Once you’ve confirmed someone as a governor, it’s hard to then go back and say, ‘I don’t want you as chair,’” he added. So, we will see. The President’s fights with the Fed have been both bitter and prolonged. This effort to impose even more basic changes could have important implications and should be watched closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Wednesday February 12, 2020 |
House Clears Senate-Passed Bill to Add Ag Inspectors At Border The House unanimously passed a bill that would increase the number of pest and disease inspectors at the border, the Protecting America’s Food & Agriculture Act of 2019, which passed the Senate in October. The package would authorize the U.S. Customs and Border Protection (CBP) to hire and train 240 new agricultural specialists each year until a work shortage is filled. CBP estimates a shortage of nearly 700 inspectors across the country. The legislation now moves to President Donald Trump who is expected to sign it.
| Rural Advocate News | Wednesday February 12, 2020 |
Lighthizer Spells Out Why He Thinks China Will Meet Purchase Commitments U.S. Trade Representative Robert Lighthizer fully expects that China will live up to the terms of the phase-one trade deal negotiated between the two sides. In comments to USDA Secretary Sonny Perdue in the ag chief’s Sonny Side of the Farm podcast, Lighthizer said the enforcement provisions in the deal are very strong and solid. But he also offered an interesting observation when it comes to the texts of the agreements. In most cases with agreements, there are differences in meanings when it comes to texts in different languages, he noted. “So I said, ‘bring me these other agreements, all these agreements with China – they agreed they would do this or that.’” He pointed to several agreements negotiated with China over the past 10 years, stating, “I found out none of them were in writing. They were just a press release from the United States. Well I thought, ‘Well no wonder China did not think they have to…’ it is breath taking to hear about these agreements, you read the press release and then you say, ‘Let me see the actual agreement,’ and there is no actual agreement … literally nothing there – not in Chinese not in English.” The phase-one agreement is “in both languages. It has been authenticated, it has dispute settlement, and enforceability. And it is signed at the highest levels of government,” Lighthizer said. “I think the Chinese want to do this. I think the ag purchases, in particular, are in their interests for sure. I think they are going to do it, but if they do not, we have an enforcement mechanism to insist on it.”
| Rural Advocate News | Wednesday February 12, 2020 |
Wednesday Watch List Markets Following Tuesday's WASDE report, Wednesday's grain markets may be on the quiet side. The U.S. Energy Department's weekly inventory report is due out at 9:30 a.m. CST and includes ethanol. The U.S. Treasury updates the federal budget at 1 p.m. Traders will check South American weather forecasts and keep watch for trade news. Weather Wednesday features a wide variety of weather across the primary crop areas. Arctic cold, light snow and strong winds will bring blizzard conditions and cold-air stress to livestock and transportation in the Northern Plains and the northern and western Midwest. The far Southern Plains, Delta, southeastern Midwest and Southeast will have moderate to heavy rain with a high risk of flooding. In the middle, a swath of mixed precipitation and snow from the southwestern Plains to the northeastern Midwest will produce safety and transportation issues, while providing moisture for winter wheat. A brief round of drier conditions is indicated during late week.
| Rural Advocate News | Tuesday February 11, 2020 |
China says it Will Meet Purchase Agreement Goals A Bloomberg article last week reported that Chinese President Xi (Zhee) Jinping made a phone call to U.S. President Trump to reassure him China will meet its goals in the Phase One trade agreement. White House Economic Adviser Larry Kudrow told Bloomberg that the Chinese government intends to live up to the agreement in spite of the impact of the Coronavirus on the country’s economy and people. “XI apparently said it may be a little slower to purchase American exports, but it will get done by the end of this year and next year,” Kudlow told Bloomberg Television last Friday. “Xi admitted there may be some delays in purchases of American imports but reiterated that they would hit the goal of $200 billion over the next couple of years.” The virus outbreak has claimed hundreds of lives and impacted the Chinese economy, where reports of rapidly rising food prices continue to make headlines. Meanwhile, the reaction to the U.S.-China trade deal has been hard to gauge, mostly because of the lack of specific numbers in the deal regarding how many soybeans China intends to source from the U.S. Plus, China will struggle with its demand for soybeans because of the impact of the African Swine Fever outbreak that killed a large number of hogs. ********************************************************************************************** Trump Budget Proposal Cuts Ag Spending The president rolled out the final budget request for his first term in office. Like all of the previous budget ideas, Politico says the bulk of Trump’s fiscal 2021 spending plans are heading straight for the congressional paper shredder. Among the many ideas lawmakers are likely to say no to are the White House calls for SNAP cuts, as well as cuts to Medicaid and other safety-net programs. That’s a big piece of the Trump effort to lower federal spending by $4.4 trillion over the next ten years. And yes, the cuts do include the Ag Department. Trump would trim the USDA discretionary budget by more than eight percent from its current levels. That would take it from $23.8 billion this year down to $21.8 billion next year. The Trump budget would propose $57.7 billion in mandatory cuts to agricultural spending by 2030, including lowering crop insurance subsidies, tightening eligibility for farm payments, and by slashing spending on conservation programs. Politico points out that like virtually all other budget proposals from previous presidents, this one has no chance of ever going into effect. ********************************************************************************************** Army Corps Proposes a Flooding Study on the Missouri River The U.S. Army Corps of Engineers is proposing to conduct a long-term study of flood risk in the lower Missouri River basin. The idea comes after the Corps received many formal letters of intent from officials in states along the river who intend to help partially fund what would be about a $400,000 project. A DTN story says landowners across the basin watched helplessly as their livelihoods were washed away in last spring’s intense weather. People living in the lower Missouri River basin continued to see high water levels long after the floodwaters had receded. The lower basin consists of a 735-mile expanse, where flooding has been a significant problem for years. The Corps says it has submitted a budget request for the flood risk management study for the fiscal year 2020 and is now awaiting funding approval. The study would be a place to start in developing plans along the lower Missouri River corridor to improve flood protection and include recommendations for actions at specific problem areas. The governors of Nebraska, Iowa, Missouri, and Kansas all signed a memorandum of agreement to pool state resources to help address continuing flood concerns. In total, the flooding disaster in 2019 caused billions of dollars in damages across the lower Missouri River basin. ********************************************************************************************** Vision 2020 Focuses on Growting Ethanol Demand at Home and Overseas The Growth Energy Executive Leadership Conference set forth its Vision 2020 goals last week. Vision 2020 includes growing demand for the ethanol industry domestically with E15 or higher ethanol blends, as well as expanding markets internationally. National Corn Growers Association President Kevin Ross took part in a stage discussion at the event. Ross told the crowd, “The farmers’ voice is so important in Washington, D.C. We are a grassroots organization and our partnerships with industry groups that have similar goals, such as Growth Energy, will help us continue to grow the E15 market and add higher blends of ethanol.” Growth Energy CEO Emily Skor says E15 ethanol will pave the way forward for even higher blends. But she also points out that the industry will only get to higher ethanol blends by “showing that E15 isn’t a niche fuel, but instead is the preferred, regular fuel that consumers use every time they go to the pumps.” The ethanol industry currently has more than 2,000 locations up and running in 30 states. During the first summer without RVP limits, ethanol sales jumped 46 percent compared to the previous year on a per-store basis. Skor adds, “With year-round E15 secured, we’re moving into an exciting new phase of expansion.” ********************************************************************************************** Illegal Pesticide Trade Growing Overseas A Washington Post report says the trafficking of illegal pesticides has grown significantly in overseas countries like Brazil. While the product doesn’t sound extravagant, it’s quickly growing into one of the more lucrative criminal enterprises in the world. The World Health Organization says these illegal pesticides will hurt countries in the developing world. Excessive use of these products can and will poison soils, contaminate water supplies, and devastate ecosystems. World population growth may be one of the factors behind the trade. Javier Fernandez, a senior official with CropLife, says, “it’s unknown, and it’s very common. The increasing demand for food is accelerating the need for pesticides, so the illegal trade is getting bigger and more violent.” Multinational corporations that sell Brazilian food into the United States say their products are safe, despite the presence of illegal pesticides in the country. For example, Bunge (BUN-gee) is a U.S. producer that sources crop from Brazil and says its contract with farmers includes clauses that “require the responsible use of pesticides.” It also conducts chemical analysis on its products to ensure their safety. Similar companies provide training for their Brazilian producers and monitor the products entering the U.S. market. ********************************************************************************************** NCBA Elects New President at the Cattle Industry Convention Marty Smith is a fifth-generation cattle rancher who was elected as the new president of the National Cattlemen’s Beef Association over the weekend at the annual Cattle Industry Convention. Smith runs a cow-calf operation in Central Florida that’s been in continuous operation since 1852. Smith graduated from the University of Georgia with a degree in Agricultural Economics and Animal Science. Smith also graduated from the University of Florida College of Law and was admitted to the Florida Bar in 1984. “It’s a tremendous honor to lead the oldest and largest national organization representing American cattle producers,” Smith says. “We have a great product and a great story, and I’m looking forward to helping tell that story without apology during the year ahead as President of the NCBA.” Smith was formally elected at a meeting of the NCBA’s Board of Directors. Jerry Bohn of Kansas was named President-Elect and Don Schiefelbein (SHEH-fel-byne) of Minnesota was elected Vice President. More than 8,000 people attended the annual Cattle Industry Convention and NCBA Trade Show over the weekend in San Antonio, Texas.
| Rural Advocate News | Tuesday February 11, 2020 |
Washington Insider: Infrastructure Investment Discussed Again The Trump administration budget proposalreceived a cool reception, as usual, although Bloomberg says there is talk now that the House Ways and Means Chairman Richard Neal, D-Mass., is “cautiously optimistic about a possible compromise with the administration.” Neal said he is looking for a broader infrastructure deal--in spite of the far-reaching, major political differences involved. Neal spoke with Treasury Secretary Steven Mnuchin on Friday to discuss the possibility of moving an infrastructure package that would be broader than the highway bill reauthorization President Donald Trump endorsed during his State of the Union address. “I think we can go well beyond that,” Neal said, adding that he liked the option of reintroducing Build America Bonds to help pay for new projects. Still, he cautioned that the President would need to address Democrats’ concerns over climate change and noted that “any bill that includes infrastructure is going to have to include climate consideration.” He also said that specific agreements had not been reached yet. “The good news is everybody wants to do infrastructure,” Rep. Tom Reed, R-N.Y., told Bloomberg. “Communications are occurring. But it’s been very difficult to get it to crystallize.” Reed suggested that a more likely outcome was something along the lines of Trump’s campaign pledge to leverage private investment onto $1 trillion in new total infrastructure spending and cited an appetite among investors for government-issued bonds. However, Democrats have already dismissed that figure as unrealistic and insist that new direct federal spending “should drive infrastructure building.” Mnuchin and the administration are claiming “new interest” in 50- or 100-year Treasury bonds, an idea floated on the 2016 campaign trail. The “Build America Bonds” were taxable municipal bonds created as part of the Obama administration’s 2009 economic-stimulus package, which included infrastructure repairs, Bloomberg said. Speaker Nancy Pelosi, D-Calif., told a group of governors over the weekend that Neal is scheduled to meet again with Mnuchin this morning. The overall budget proposal the administration is expected to release this week is expected to include an enormous $4.8 trillion package for the upcoming fiscal year including $1 trillion for infrastructure spending, modeled on combining legislation proposed by Sen. John Barrasso, R-Wyo., with a $200 billion fund for “nationally significant projects.” The remainder of the funding would be made up of public-private partnerships and state and local spending, the administration has said. The White House would replenish the depleted Highway Trust Fund through cost savings in other areas of the budget. One element of the expected proposal is a somewhat pared-back request for Mexican border wall construction. The request would be for $2 billion, down from $8.6 billion requested a year ago. Senior administration officials are telling the press that that with funding for 1,000 miles of wall already secured, less spending will be needed. Bloomberg also noted that fiscal 2021 appropriations bills will not include earmarks, despite earlier support in the House Democratic caucus. House Democrats had discussed the possibility despite Senate Republican support for an indefinite ban on earmarks last year. “In the end you have to have bicameral, bipartisan support for this,” Rep. David Price, D-N.C., said last week ahead of the decision to abandon an earmark revival for the rest of the 116th Congress. “You don’t want one side exploiting it politically.” Bloomberg also reported that the United States has abandoned its antitrust probe of four automakers that sided with California over the administration’s fight over the future of fuel economy and emissions requirements. The inquiry had targeted Ford, Honda, BMW and Volkswagen over their agreement last year with California regulators to voluntarily meet the state’s targets for fuel economy and tailpipe emissions. The decision was seen as undercutting the administration’s plan to relax the national requirements and was decried by the administration at the time as a “PR stunt.” California Gov. Gavin Newsom cheered the decision, calling it “a loss for the weaponization of federal agencies.” He argued that the effort was a “blatant attempt by the administration to prevent more automakers from joining California and agreeing to stronger emissions standards,” Newsom said. So, we will see. Clearly, the coming budget fight will be highly contentious and possibly prolonged—although there seems to be no appetite now for shutting down the government. Still, many high-stakes proposals are on the table, to one degree or another, and should be watched closely by producers as they appear, Washington Insider believes.
| Rural Advocate News | Tuesday February 11, 2020 |
EPA Chief Comments on Court Case Impact on RFS EPA Administrator Andrew Wheeler on Saturday said the recent federal court decision to vacate three biofuel small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS) “has the potential of completely changing the small refinery program.” The court struck down waivers for three refineries in Oklahoma, Utah and Wyoming, ruling that the EPA could only extend exemptions for plants that had continuously received waivers from their RFS obligations. The three plants in question had not been previously granted exemptions. The agency is now “taking a close look at the 10th Circuit decision and the ramifications to the program,” Wheeler told AgWired in an interview, saying the agency would have something on that “shortly.” This is the first acknowledgement from EPA that the decision could have a significant impact on the SREs ahead..
| Rural Advocate News | Tuesday February 11, 2020 |
Trump Budget Plan Again Proposes Pay Cap, Crop Insurance Changes The Fiscal Year (FY) 2021 budget plan had a familiar feel to it Monday, including provisions that have been floated before by this and other administrations. The administration included legislative proposals that would lower the adjusted gross income (AGI) limit to be eligible to obtain farm program payments to a maximum of $500,000. And the limit would apply to more benefits than just those under the farm program. Plus, the administration said the separate pay cap for peanuts of $125,000 needs to go and there needs to be a limit of $125,000 per person on Marketing Assistance Loan (MAL) benefits. On crop insurance, the administration proposes cutting the crop insurance subsidy on harvest price option (HPO) policies by 15 percentage points and by 10 percentage points on policies without the HPO. That item would save $21 billion over 10 years. But the legislative proposals floated by the administration will not be picked up and ran with by lawmakers. However, the proposals indicate that the administration will keep this as a focus should Trump win another term in November. So even though these proposed cuts are not expected to materialize, ag interests are on notice that this will be a recurring theme ahead. The budget documents also make no mention that a 2020 Market Facilitation Program (MFP) is in the cards, with their projections showing that more than $9 billion under the MFP 2 effort for 2019 will still go out to producers in FY 2020. As of late Monday, USDA had not updated their figures for funds paid out to farmers via the final installment of the MFP 2 payments.
| Rural Advocate News | Tuesday February 11, 2020 |
Tuesday Watch List Markets USDA's WASDE report is set to be released at 11 a.m. CST Tuesday and the focus will likely be on U.S. export estimates and South American crop estimates. This will be USDA's first WASDE since the phase-one agreement was signed and that adds a little more drama to what is usually a quiet February ritual. Weather and any trade news that develops will round out trader interests. Weather Continued wet weather for the Southern Plains through the Delta and into the Mid-Atlantic Tuesday. Another round of heavy rainfall with a developing system through the same areas Wednesday and Thursday. Some moderate snow will accompany this round for the southwestern Plains Tuesday, spreading into the Midwest on Wednesday and Thursday. Colder air returns, albeit briefly, Wednesday through Friday across the Northern Plains and upper Midwest with some of the coldest air of the season and potential for a ground blizzard in the Red River Valley of the North.
| Rural Advocate News | Monday February 10, 2020 |
Corteva Dropping Chlorpyrifos Chlorpyrifos (Klor-PEER-uh-fos) is a pesticide that’s been sprayed on crops like strawberries, corn, and citrus, for many years to kill pests. Corteva (Kor-TEV-ah), the largest manufacturer of chlorpyrifos, says it will stop manufacturing the product by the end of the year. The insecticide has been linked in certain studies to neurological problems in children and has been called a threat to wildlife. However, the Environmental Protection Agency has resisted banning the product from the market, while saying that additional safety tests are needed. Some states haven’t waited for the EPA to make a decision and acted on their own. California is a state that says farmers can’t use the insecticide after December 31st of this year. Hawaii was the first state to ban chlorpyrifos, with that ban to take effect in 2022. The European Union has also banned using the insecticide. Corteva spokesperson Gregg Schmidt says demand for the product has “declined significantly” over the last twenty years. That’s what drove the decision to stop manufacturing the product, not safety concerns. Corteva tells Reuters that the company will continue to back chlorpyrifos during the EPA’s review. Environmental groups are happy with the move, but they caution that other companies are still manufacturing the product, which is allowed on imported food. ********************************************************************************************** Commerce Department Continues Argentina Biodiesel Anti-Dumping Duties The U.S. Commerce Department responded to a U.S. Court of International Trade ruling requiring it to explain how it found cause for anti-dumping duties on biodiesel from Argentina. In a recent filing with the court, the Commerce Department made “certain changes” to its calculations. However, the anti-dumping duty rates would remain the same for the two Argentine producers and exporters involved in the case. However, things could eventually be changed when it comes to imported biodiesel from Argentina. The Commerce Department is conducting a “changed circumstances review” that was requested by the Argentine government. Depending on what the review determines, it could potentially lead to lower countervailing duties on biodiesel imports from Argentina. The U.S. imported about $1.2 billion worth of biodiesel from Argentina in 2016, before duties were imposed in a case brought by the National Biodiesel Board and 15 domestic biodiesel producers. ********************************************************************************************** China to Cut Tariffs on U.S. Imports The Chinese Finance Ministry says it will cut tariffs on $75 billion worth of U.S. products. The cuts begin on February 14th and will include ag commodities like soybeans, asparagus, pork, and more. However, a Wall Street Journal article says there likely won’t be a big impact. An Agri-Pulse report says the move will cut tariff rate increases in half, somewhere between five and 10 percent, that China put into effect late last year in response to U.S. tariffs. The 30 percent punitive tariff on soybeans will drop to 27.5 percent on February 14, which will be seen largely as a goodwill gesture by China that won’t have a big effect on trade between the two countries. The “Phase One” trade deal between China and the U.S. calls for increased Chinese purchases of American agricultural commodities but neither side did away with the tariffs that have been a staple of the trade war since it began. China points out that the next step in tariff reduction depends on how much progress the two countries make in their relationship. U.S. and government officials say they expect China to boost purchases by granting targeted exemptions to the tariffs currently in place. All recent Chinese soybean buys took place in spite of the punitive tariffs in place and were due to the Chinese government giving targeted exemptions to importers. ********************************************************************************************** Pork Board Committs Half-Million Dollars to Fellowships The National Pork Board has opened up applications for a new series of swine research fellowships to help provide a pipeline of highly-skilled employees for the pork industry. The checkoff is investing a hefty sum of $500,000 for the fellowships. The money will fund education and training in critical areas of impact, such as animal science, feed science and management, engineering and human resources, along with many others. “Labor supply is critical to the entire pork industry,” says David Newman, President of the National Pork Board. “This fellowship program will develop highly-trained professionals who possess the skills and abilities with direct application to pork production both now and in the future.” Fellowships will be awarded for a maximum of two years and can be used for multiple advanced-degree programs. Fellowship funding will be capped at $30,000 over two years. Second-year funding will be contingent on the submission and approval of a progress report at the end of the first year. Go to www.pork.org/rfp for more information. Application materials must be submitted by February 25th. ********************************************************************************************** NCBA Researches Confusion about Plant-Based Fake Meat The National Cattlemen’s Beef Association released survey results that show widespread consumer confusion about plant-based fake meat products and the ingredients they contain. Less than half of the 1,800 respondents understood the labeling term “plant-based beef” was intended to describe an entirely vegetarian or vegan food product. One major source of confusion for one-third of consumers is the mistaken belief that plant-based meat products contained at least some real beef. “The fact that so many consumers look at these labels and think that the products include meat or any other animal by-product is a clear sign that the misleading labeling and deceptive marketing practices surrounding plant-based fake meat has caused real consumer confusion,” says NCBA President Jennifer Houston. Among other mistaken beliefs is 44 percent of consumers thought plant-based products were lower in sodium. In reality, leading plant-based fake beef is between 220 to 620 percent higher in sodium than the same-sized serving of real beef. “We need to do a better job of educating consumers on the differences,” Houston says. ********************************************************************************************** Broin Named American Biofuels Visionary by Growth Energy Growth Energy CEO Emily Skor recently named POET Founder and CEO Jeff Broin as the American Biofuels Visionary award winner. Tom Buis (BUY-us), previously the CEO of Growth Energy, joined Skor onstage during the 11th Annual Executive Leadership Conference. Growth Energy presents the award in tribute for a lifetime of leadership that has fueled the growth of America’s entire biofuels sector. “Jeff Broin’s unwavering leadership and transformative vision for U.S. biofuels have touched the lives of every American, from farm families in South Dakota to drivers in New York,” Skor says. “As founding chair of Growth Energy, he followed in the footsteps of other great American founding fathers, building an enduring legacy that will shape the future of homegrown energy for generations to come.” Broin says he’s honored and humbled to be recognized by Growth Energy. “Helping to found and grow this organization has been a true labor of love for me, going back to my roots on the family farm. While we have won many battles, the war over biofuels is far from over.” Broin says he will continue to work with the biofuels industry and agriculture to drive biofuels to new heights in the years to come. POET Biofuels is the world’s largest ethanol producer.
| Rural Advocate News | Monday February 10, 2020 |
Washington Insider: The Impacts of the Coronavirus Scrutinized The urban press is laser-focused on the rapidly spreading impacts of the coronavirus just now. Fed chair Jerome Powell is scheduled to appear before a couple of congressional committees this week and certainly will face strong scrutiny regarding developments and plans for key economic policies. As might be expected, Powell is confessing that he finds it “very hard” to understand China’s economy--and that the disease outbreak “has made that exponentially more difficult.” Certainly, these issues are seen as “too important to ignore,” Bloomberg thinks because of the sheer size of the economy—so that “any hit to its growth from the epidemic will have a knock-on impact for the rest of the world and the US,” and much of the world is worried. The effects of the coronavirus in China are generating a “prominent new risk to the outlook,” the U.S. central bank wrote in its semi-annual report to Congress released on Friday. Just how big that risk is--and the expected Fed response—certainly will key topics as Chairman Powell kicks off two days of Congressional testimony before the House Financial Services Committee, and then to the Senate Banking panel. Lawmakers also will likely press Powell for the rationale behind the big run-up in the Fed’s balance sheet that’s occurred since September’s turmoil in the money markets. Bloomberg also notes that the testimony comes on the heels of the impeachment fight and ahead of November elections so the hearings—like almost everything else—almost certainly will be “politically contentious” as lawmakers from both parties pepper Powell with questions. “He is going to have his Kevlar on,” said Ward McCarthy, chief financial economist at Jefferies LLC. “All of the questions will have some political connotations.” Ahead of the hearings, traders in the federal funds futures market are betting that Powell and his colleagues will respond to the virus with a cut in interest rates later this year. Still, given all the unknowns involved, Fed watchers say Powell is unlikely to be that clear about the Fed’s intentions. But he’s just as unlikely to dismiss the threat and rule out any response. “There’s little upside to trying to sound too confident,” said former Fed researcher Michael Feroli, who is now chief U.S. economist at JPMorgan Chase & Co. “At least when I was there, there weren’t any virologists on the board.” Bloomberg also notes that its own economists think that “the underlying hiring trend is robust, providing a sturdy foundation for domestic growth,” although this is due to be challenged in the relatively near term by weak global growth in general and coronavirus supply-chain disruptions in particular. In the meantime, private sector economists have started to shave their estimates of U.S. growth due to the coronavirus. Feroli cut his first-quarter forecast to 1%, though he expects activity to bounce back in the second quarter. Oxford Economics is more pessimistic. It reduced its first-quarter growth prediction to 0.6% from 1% with some spillover into the second quarter. At the same time, the virus outbreak occurs against a backdrop of what is mostly a healthy U.S. economy. U.S. employers boosted payrolls by a higher-than-expected 225,000 in January as wage gains also rebounded. The global outlook also appears a bit brighter now thanks in part to the US-China phase one trade deal and fading of fears of a disruptive, no-deal Brexit. What’s more, the turbulence in the money markets has also subsided, thanks to hundreds of billions of dollars the Fed pumped into the financial system. So, Powell will have a lot to discuss. In a Feb. 6 letter Democrat senators pressed him for an explanation of what lay behind last year’s agitation in the money markets and the Fed’s response. The lawmakers, including presidential candidate Elizabeth Warren, raised questions about whether the banks had gamed the market in hopes of winning some regulatory relief. Powell, for his part, has depicted the money market interventions as a success. He also sounded satisfied with the stance of monetary policy, after three interest rate cuts last year. And he’s suggested that he’s likely to stay that way unless there’s a material change to the outlook for the U.S. economy. So, we will see. Whether the coronavirus will eventually force such a reassessment is unclear at this point even as it broadened “the set of possible outcomes,” said Nathan Sheets, a former Fed official who is now chief economist for PGIM Fixed Income. And, it means that producers should watch the upcoming monetary debates especially closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday February 10, 2020 |
Stabenow Again Hits USDA Over MFP ‘Inequities’ Senate Agriculture ranking member Debbie Stabenow, D-Mich., released an updated report alleging inequities in payments from USDA's Market Facilitation Program (MFP). She said the data show a bias in payments towards large and Southern farms on a per-acre basis. “As farmers continue to face tough times, the Trump administration has failed to correct the serious inequities within their flawed trade assistance program,” Stabenow said in a statement. Stabenow argued MFP’s “relaxed payment and eligibility limits” have benefitted large farms and foreign companies at the expense of small and beginning farmers. A USDA spokesperson disputed the findings, telling Politico “farms with less than 100 acres received an average of $55.90 per acre, while farms with more than 2,500 acres received an average $47.51 per acre.” The spokesperson also emphasized that MFP payments are made based on trade damage, not other factors.
| Rural Advocate News | Monday February 10, 2020 |
USDA Report Details China Trade Deal Impact on US Trade Forecasts The Office of the Chief Economist released a report, “Agricultural Provisions of The U.S.-China Economic and Trade Agreement and USDA Trade Forecasts,” outlining how the Phase One trade agreement will – and will not – affect USDA trade forecasts for the monthly WASDE and other monthly, quarterly and annual reports. While some have focused on the statement referenced more than once in the document that “commodity-specific commitments are not publicly available and are therefore not considered in the published forecasts,” it is important to note that the report also states, “Beginning in February 2020, USDA trade projections for 2019/20 (and Fiscal Year 2020) will fully consider all publicly available information on the Agreement, as well as any new market or policy developments that would affect those forecasts.” As for the forecasts released at USDA’s Outlook Forum near Washington, DC, Feb. 20-21, and the first official 2020/21 forecasts in the May WASDE, the report states, “Both the initial forecasts released in February and the official May WASDE 2020/21 forecasts will incorporate the Agreement into the underlying analysis, along with all other relevant market and policy variables.” Importantly, the report also notes, “As more information and data become available regarding the timing, volume and content of China’s commodity purchases, USDA commodity forecasts will be updated to reflect that new information.” This indicates that USDA analysts are being given no additional information beyond what has already been made public. But it also means they will be incorporating the information is available in their forecasts starting with the February WASDE report due on February 11.
| Rural Advocate News | Monday February 10, 2020 |
Monday Watch List Markets Unless something unexpected happens over the weekend, Monday's trading in grains is apt to be restrained ahead of Tuesday's WASDE report. Traders will check South American weather forecasts and any trade news. USDA will release weekly export inspections at 10:00 a.m. CST. Weather Heavy rain and flood threat is in store for the Delta and southeastern Midwest Monday. Another round of heavy rain is indicated for these areas during midweek. We'll also see snow begin in the far southwestern Plains, where heavy snow is likely over the next couple days. Other crop areas will be drier, allowing for flood recovery in the Northwest and improved transportation in the northern Midwest after heavy weekend snow.
| Rural Advocate News | Friday February 7, 2020 |
2020 Farm Income Forecast Looks “Average” U.S. net cash farm income, the total income after expenses, is forecast to decrease $13.1 billion to $109.6 billion in 2020. When adjusted for inflation, the drop is almost 11 percent compared to the previous year. U.S. net farm income is a broader measure of profitability. It incorporates noncash items like economic depreciation and gross imputed rental income, and it forecast to increase by $1.4 billion to $96.7 billion in 2020. That’s a 1.4 percent jump over 2019. The USDA says if the forecast changes are accurate, net cash farm income in 2020 would be 0.6 percent below the inflation-adjusted average calculated throughout 2000-2018. Net farm income would be 5.4 percent above the average during 2000-2018. The two income measures will diverge this year because of how net sales from inventories are treated. Net cash farm income records the income in the year a sale took place, while net farm income counts it in the year production occurred. For example, high net sales at $14.9 billion from crop inventories forecast in 2019 are expected to boost net cash farm income significantly that year. Very low net sales from inventories ($0.5 billion) in 2020 are expected to contribute to a decrease in net cash farm income between the two years. ********************************************************************************************** U.S. Pork Exports Set Record in 2019 2019 was a banner year for U.S. pork exports in terms of volume and value, reaching almost $7 billion. That comes from USDA data compiled by the U.S. Meat Export Federation. Exports of U.S. beef were below 2019’s record levels, while lamb export volume was the second-largest on record. Pork exports rose to just over 282,000 metric tons in December, up 34 percent year-over-year and surpassing the previous high set in November of 2019 by nine percent. Export value was $760 million, up 44 percent from the previous year, breaking the previous record also set in November of 2019. These results pushed 2019 pork exports 10 percent above the previous year in volume and nine percent higher in value. December beef exports were a little over 111,000 metric tons, down one percent from last year, and valued at $682 million, a three percent drop. Exports in 2019 were down 2.5 percent from the previous year’s record volume, finishing at 1.32 million metric tons. The surge in pork demand was due in part to Chinese and Hong Kong demand for U.S. pork, which climbed to almost 110,900 metric tons in December. That’s more than quadruple the previous year’s volume. The value was six times higher than last year at the same time, totaling almost $275 million. ********************************************************************************************** Perdue: U.S. Must be Understanding if Coronavirus Affects Chinese Purchases Ag Secretary Sony Perdue says the U.S. will have to be “tolerant” if the fast-spreading Coronavirus inhibits China’s ability to increase purchases of American farm goods. China pledged in the “Phase One” agreement to buy at least an additional $12.5 billion worth of farm goods in 2020 and at least $19.5 billion in 2021 over the 2017 level of $24 billion. Commodity traders and economists have questioned China’s ability to follow through on those commitments since the deal was signed. Now that the Coronavirus is continuing to spread, it poses a threat to China’s economic growth. “If they’re trying and the disease blows the economy out of the water, then we’ll need to be understanding,” Perdue told reporters during a cattle industry convention in Texas. Reuters says Perdue isn’t part of the government team that’s responsible for enforcing the terms of the agreement. He also didn’t say how the U.S. would need to adjust its expectations of China. The text of the agreement does contain a disaster clause, which Beijing has yet to formally invoke, which would allow for delays. China has reported that over 500 people have died in the Coronavirus outbreak. ********************************************************************************************** Trump Wants Trade Deal with Kenya President Donald Trump and the president of Kenya are going to kick off bilateral trade negotiations this week as they meet at the White House. V.O.A. News Dot Com says this is an unusual effort for the president, who’s largely focused his trade efforts on major economic powers like China, Japan, and the European Union. Kenya ranks 98th among the U.S. trading partners with about $1 billion in two-way trade of goods in 2018. However, a trade deal with Kenya could create a template for future negotiations with other African nations. It would also help to thwart some of China’s rising influence in the continent. China took the top spot from the U.S. as Africa’s number one trading partner several years ago. Scott Eisner is president of the U.S.-Africa Business Center at the U.S. Chamber of Commerce. He says the agreement is likely to take several years to complete, especially if Trump follows the trade promotion authority law. That requires congressional input for comprehensive trade deals. If the two sides eventually agree, it would be the first trade deal between the U.S. and an African nation. The U.S. currently has 20 free-trade deals in place with other countries, but none are on the African continent. ********************************************************************************************** Cattle Outlook Positive in 2020 With a plateau in U.S. cattle numbers and strong beef demand ahead, CattleFax says prices are likely to be stronger in the year ahead as consumers at home and abroad support industry profitability. That’s one of the big takeaways from the CattleFax outlook session in San Antonio, Texas. Kevin Good, CattleFax Vice President of Industry Relations and Analysis, says trade will play a significant role in beef and cattle markets. He expects higher total animal protein production will be offset by strong demand and increasing exports. “With strong demand for U.S. beef at home and rising demand overseas, the modest increases in supply will be more than offset by growing consumer appetite for our product,” Good says. CattleFax is projecting composite cutout prices will rise $3 during the upcoming year to reach $222 per hundredweight. Good also says CattleFax is projecting fed steer prices to average $120 per hundredweight during 2020, an increase of $3 from the previous year. Calf prices are also expected to move higher in the year ahead. CattleFax CEO Randy Blach (Block) predicts a lot less volatility in the market during 2020 than compared to last year. ********************************************************************************************** USDA Announces Details of RMA Hemp Protection Programs The USDA announced the details of two programs that protect hemp producers’ crops from natural disasters. A pilot hemp insurance program through Multi-Peril Crop Insurance provides coverage against yield loss because of insurable causes of loss for hemp grown for fiber, grain, or CBD Oil. The Noninsured Crop Disaster Assistance Program coverage protects against losses associated with lower yields, destroyed crops, or prevented planting where no permanent federal crop insurance program is available. Producers can apply now, with the deadline to sign up for both programs set for March 16, 2020. “We are pleased to offer these coverages to hemp producers,” says USDA Undersecretary for Crop Production and Conservation Bill Northey. “Hemp offers a new economic opportunity for our farmers, who are anxious for a way to protect their product in the event of a natural disaster.” The pilot insurance program option for hemp producers is available in select counties in 21 states during the 2020 crop year. The Noninsured option provides protection against loss for hemp grown for fiber, grain, seed, or CBD for the 2020 crop year where no permanent federal crop insurance program is available.
| Rural Advocate News | Friday February 7, 2020 |
Washington Insider: The Consumer Economy Continues to Shrug Off Industry Woes Well, the economic outlook continues to show signs of both strength and weakness and to defy easy interpretation, Bloomberg is reporting this week. It highlights the warning from Caterpillar Inc. that “sales of its heavy machinery are expected to slump for a second straight year in 2020 amid continued global economic uncertainty.” Still, Bloomberg emphasizes that Amazon.com Inc., added $72 billion in market value — about the size of Caterpillar — after reporting robust holiday season sales. The report says that shows “how much the U.S. industrial and consumer economies have diverged.” The report explains that the manufacturing sector went through a mild recession last year as the administration’s trade war with China “added costs to supply chains and curtailed business investment.” And it says that “new data from the Institute for Supply Management show U.S. factory activity barely expanded in January after contracting in the last five months of 2019. However, it notes that “this industrial downturn was at most a blip for the still-roaring consumer spending spree.” CSX, 3M, and other industrials joined Caterpillar in reporting sluggish sales predictions but McDonald’s and Starbucks reported healthy gains for the final three months of the year. Even Target Corp., which warned last month of weaker-than-expected demand for toys and electronics, over the holiday season, managed to project sales at stores open at least a year to be up more than 3% in 2019. U.S. consumer sentiment reached an eight-month high in January, according to University of Michigan data. One reason there hasn’t been a broader recession is that manufacturing’s share of the economy continues to shrink, Bloomberg thinks. Factory output accounted for 11% of U.S. gross domestic product in the third quarter, which is tied with the second quarter for the lowest level since 1947, the report says. Another is that this wasn’t a typical slump. What happened in 2019 was a “policy-driven slowdown,” says Gina Martin Adams, chief equity strategist at Bloomberg Intelligence—that is, the trade war. While U.S. whiskey, motorcycles, and myriad other products are subject to European Union tariffs, the consumer sector emerged largely unscathed from the spat with China. The administration’s threat on Aug. 1 to apply a 10% tariff on $300 billion of Chinese products, including toys and iPhones, was watered down and then partially rescinded, the report notes. The industrial sector, by contrast, bore the brunt of the back-and-forth in 2018 and 2019 as it dealt with broad U.S. taxes on aluminum and steel imports and tariffs on $250 billion of mostly manufacturing-related products. Those Chinese imports remain subject to 25% tariffs. The tariffs appear to have stalled an industrial recovery that was gaining traction following a mini-recession in 2015-16 amid plunging oil prices, the report concludes. Already, companies were dealing with rising labor, raw material, and logistics expenses. But the will-he-or-won’t-he debate around the U.S. tariff push created an “impossible environment in which to make major purchases of expensive machinery.” Industrial companies’ sales suffered. A belief that things would recover quickly if the U.S. and China reached a trade deal changed how companies responded to the slowdown, Bloomberg suggests. Executives didn’t want to be caught flat-footed by a swift recovery or left without workers in a tight labor market. Thus far, people have largely stayed employed and been active consumers. Even with all the volatility in 2019 – which also included a six-week General Motors Co. strike and the global grounding of Boeing Co.’s 737 Max jet – the manufacturing industry ended 2019 with a net gain of 46,000 jobs, the Commerce Department is reporting. Asked on a Jan. 28 earnings call if aerospace supplier United Technologies Corp. would lay off employees to help it cope with the Boeing production halt, Chief Executive Officer Greg Hayes said “that would be the easiest thing to do, but quite frankly, given the scarcity of talented aerospace workers out there, we’re not going to.” Most industrial CEOs say they expect a challenging economic environment to linger at least through the first half of the year. Emerson Electric Co. and 3M Co. announced fresh restructuring plans in their earnings releases that will almost certainly include job cuts. But a continued slow bleed in manufacturing combined with moderate cost-cutting probably won’t be enough to tip the overall employment picture negative, Adams says. With the Federal Reserve signaling that it’s unlikely to raise interest rates soon, things would have to change materially for that manufacturing weakness to leak into the consumer sector, she adds. One wild card is the coronavirus and the impact it could have on consumer sentiment, particularly in China. Unlike the trade war, the outbreak threatens to hit consumer-facing companies equally as hard if not harder than industrial ones, with Apple, McDonald’s, and Starbucks shuttering locations in China and U.S. airlines halting travel to the country. So, we will see. This will be a campaign year and there likely will be political interventions at the slightest sign of economic weakness – developments that should be watched closely as the elections approach, Washington Insider believes.
| Rural Advocate News | Friday February 7, 2020 |
USDA Sees 2020 Net Farm Income Rising Despite Government Payment Downturn USDA forecasts U.S. net farm income to increase $3.1 billion (3.3%) from 2019 to reach $96.7 billion in 2020. Net cash farm income, however, is forecast to decrease $10.9 billion (9%) from 2019 to $109.6 billion in 2020, according to USDA. The difference between net farm income and net cash farm income is based on what is included in each forecast. Net cash farm income encompasses cash receipts from farming as well as farm-related income, including government payments, minus cash expenses, according to USDA, but it does not include noncash items—such as changes in inventories, economic depreciation, and gross imputed rental income of operator dwellings — reflected in the net farm income. Some are playing up that USDA is “forecasting” a downturn in government payments. But that was well known or should have been ahead of the USDA update as no 2020 Market Facilitation Program (MFP) effort has been announced. Total direct government farm program payments are seen at $14.98 billion in 2020, down $8.7 billion from $23.65 billion in 2019. But farmers will still receive some MFP money in 2020 as USDA projects eligible producers will still get nearly $3.7 billion in MFP dollars.
| Rural Advocate News | Friday February 7, 2020 |
US December Ag Exports Hold Near $12 billion The value of U.S. ag exports in December moved down to $11.85 billion, down from $12.66 billion in November, putting total exports for the first three months of Fiscal Year (FY) 2020 at $36.59 billion. Ag imports rose to $10.75 billion in December, up from $10.31 billion in November, putting the FY 2020 total at $31.98 billion. The monthly trade surplus was $1.1 billion pushing the quarterly surplus to $4.62 billion. So far in FY 2020, exports have totaled more than $1 billion above the year-ago period, while imports have risen nearly $100 million. The rise in exports compared with year ago is an encouraging sign but even more surprising is that imports have not risen more. The overall U.S. December trade results showed that imports rose significantly in December, a trend not matched in the agricultural data. Now the focus will shift to how USDA alters their outlook for U.S. ag exports later this month, in particular how they account for the Phase One agreement with China and the ag purchase commitments in that pact.
| Rural Advocate News | Friday February 7, 2020 |
Friday Watch List Markets At 7:30 a.m. CST Friday, the U.S. Labor Department will release nonfarm payrolls and unemployment rate for January. Markets will largely be on their own the rest of the day, noticing the South American weather forecast and any further trade news that might emerge. Weather Friday will feature this week's heavy rain ending in the southeastern U.S. We'll also see periods of light snow in the Midwest, heavy snow in the Northeast, snow in the Rockies, and rain and snow in the Northwest. Dry conditions will be in place elsewhere.
| Rural Advocate News | Thursday February 6, 2020 |
China Says Trade Deal Good for both China and the U.S. China calls the Phase One agreement a "win" for both sides, following comments made during the State of the Union address this week by President Donald Trump. During the Tuesday evening speech, President Trump called the trade deal with China a "Win" for the United States, worth billions in new U.S. ag exports. Wednesday, a spokesperson for China’s Foreign Ministry responded to the comment, stating, “Sound and steady development of bilateral relations serves the fundamental interests of the two countries and meets the aspiration of the international community.” Trump signed the Phase One agreement in January. However, the benefits of the deal may now be delayed. The Coronavirus outbreak is thought to limit demand and could cause delays at Chinese ports. China offered a different tune, though, Wednesday, saying, “China and the U.S. are in close communication on the situation through diplomatic and health channels.” Earlier in the week, China claimed the U.S. “hasn't provided any substantive assistance.” China is also seeking flexibility on trade deal rules due to the coronavirus outbreak. ************************************************************************************* NCBA Unveils Top Policy Priorities For 2020 Kicking off the National Cattlemen’s Beef Association annual convention, leaders of the organization approved top 2020 policy priorities. At the annual Cattle Industry Convention in San Antonio, Texas, NCBA leadership included issues related to international trade, proper regulation of fake meat, and regulatory reform. Although after a series of significant policy victories in 2019, this year’s priority list is focused on implementing and protecting those gains. NCBA President Jennifer Houston says, “Now it’s time to implement and defend those gains and to keep pushing for policies that will help improve conditions for cattle producers.” This year’s priorities include an issue that was a late addition to last year’s list after Congressional introduction of the so-called Green New Deal: climate policy. NCBA plans to “Continue to push back against misguided climate policies while advancing the U.S. cattle industry’s tremendous environmental record.” NCBA also plans to prioritize the importance of cattle markets, and aggressively pursue final regulatory rules, including the Waters of the U.S. Rule, among others. ************************************************************************************* Beef Quality Assurance Online Modules Updated Building on its updated National Manual launched in Summer 2019, the Beef Quality Assurance program, or BQA, has updated its online training modules to make them more realistic and useful. The new modules are now available to those who are first becoming BQA certified online and those who are getting recertified as required after three years. First launched in 2017, the online training modules have been embraced by more than 100,000 in the cattle industry. BQA certifications are also available at in-person training events offered through state beef councils, and other local efforts throughout the country. Funded by the Beef Checkoff, the BQA program touches more than 85 percent of beef produced in the United States today. Bob Smith, chair of the BQA Advisory Board, says, "The new online modules maintain the program's integrity and make its lessons more real-life and user-friendly." After registering, participants are taken through an interactive training module that can be completed online, anytime. Learn more at www.bqa.org ************************************************************************************* E15 Sales Reach Record in 2019 A new Renewable Fuels Association analysis found approximately 500 million gallons of E15 were sold nationwide in 2019, setting a new record. RFA says the record proves that the Trump administration’s elimination last summer of an obsolete regulatory barrier is working. However, sales would have been even stronger if not for the RFS compliance exemptions granted by EPA to dozens of refineries. E15 sales in Minnesota—the only state that tracks monthly purchases of higher ethanol blends—increased by nearly a third in 2019, compared to 2018. The review by RFA Chief Economist Scott Richman extrapolated the Minnesota data nationally, finding that 499 million gallons of E15—containing 75 million gallons of ethanol—were sold across the country in 2019. Before 2019, sales of E15 had been prohibited each year during the summer months in areas where conventional gasoline is sold. In May 2019, the EPA allowed E15 to be sold year-round by extending to it the vapor-pressure waiver that was already available for E10 blends. ************************************************************************************* CoBank Examines Impact of Wal Mart entering Beef Business Walmart officially entered the beef business in January when it opened a case-ready beef plant in Georgia after establishing its own Angus supply chain. The facility is the latest step by Walmart in its vertical integration strategy for food, according to a new report from CoBank's Knowledge Exchange division. If Walmart's new beef plant and Angus supply chain succeed, it could lead the retail giant to take another step up the supply chain towards the producer. That could be in the form of harvesting fed cattle or through a joint venture with a current packer. Will Sawyer, animal protein economist with CoBank, says, “We believe their current beef strategy is something of a test, not only for Walmart and its suppliers, but also its customers." The new plant will cut and prepare steaks and roasts produced by Walmart's Angus beef supply chain for 500 stores. CoBank doesn’t see the move shifting the price and leverage dynamics of U.S. beef production, adding the move will account for less than .5 percent of U.S. beef production. ************************************************************************************ AFBF, INTL FCStone Partner on Risk Management Tools for Farm Bureau Members The American Farm Bureau Federation is partnering with INTL FCStone to offer Farm Bureau members exclusive discounts on FCStone’s catalog of agricultural risk management tools. Announced Wednesday, the partnership includes access to a range of customized commodity marketing plans to data management solutions and educational seminars and covers an extensive range of agricultural commodities, from grains and oilseeds to dairy and livestock. AFBF President Zippy Duvall says the partnership "will give Farm Bureau members access to invaluable education and resources to help them succeed." Through the partnership Farm Bureau members are eligible for ten free trades each year when opening a new account, discounts on subscriptions and fees to attend conferences, along with access to INTL FCStone’s Market Intelligence expertise at reduced rates. AFBF President Duvall says, "It’s important to take control where we can, and this new member benefit can help us do that.” Farm Bureau members can learn more online, at FB.org/FCStone, or by contacting the state Far. Bureau office.
| Rural Advocate News | Thursday February 6, 2020 |
Washington Insider: US Annual Trade Gap Shrinks Bloomberg is reporting this week that the U.S. trade gap narrowed last year. Lower shipments from China and declining oil imports are driving the trend, the report said. However, it also noted that the “overall gap” remains wider than it was before President Trump took office, although the trend is seen as giving the president evidence he has delivered on his pledges to reduce the gap. The annual deficit in goods and services decreased for the first time in six years, narrowing 1.7% to $616.8 billion according to Commerce Department data reported on Wednesday. However, the December gap rose from the prior month to $48.9 billion, wider than the median estimate of economists as oil imports from Canada jumped. President Donald Trump frequently cites the trade deficit as evidence of the failure of earlier trade policies — even though most economists don’t dwell on the indicator since it reflects numerous broader economic trends beyond overseas purchases and sales. However, Bloomberg notes that the gap remains more than 20% wider than before the president took office. That reflects steady gains in American consumer spending, which drives imports, Bloomberg said. The annual merchandise-trade deficit with China — the principal target of the administration’s trade war — narrowed 17.6% to $345.6 billion after hitting a record in 2018. Imports from the country slumped 16.2%, exceeding the drop in 2009 during the global financial crisis, while shipments to China declined 11.3%, the biggest drop since at least 2003. That pushed China down to third place among America’s top trading partners for goods in 2019, as Mexico claimed the top spot, slightly ahead of Canada. The merchandise deficits with Mexico and the European Union hit records, while the U.S. surplus in services declined by 4% to $249.2 billion as imports gained. Bloomberg also said it expected that the phase-one trade deal with China is likely to have an impact on the composition of trade flows, “but not the overall net position.” The boost to exports growth, however, appears likely to be delayed by the coronavirus outbreak. Overall, Bloomberg estimates exports will add only slightly to GDP in 2020 and for net trade to continue to subtract from full-year growth. Even with the trade tensions in recent months, oil was a chief force behind the full-year deficit narrowing. Petroleum imports dropped $31.4 billion to $193.9 billion while exports increased, narrowing the full-year gap in such products to a record-low $13.7 billion. On a monthly basis, the U.S. has been a net exporter since September. However, the non-petroleum goods deficit was $839.2 billion, a record high. In addition, the U.S. and China last month signed the first phase of a trade agreement that is expected to boost Chinese purchases by $200 billion over the next 24 months, the culmination of almost three years of acrimonious talks that have roiled markets. However, the coronavirus “threatens to affect that target that many observers thought was lofty before the outbreak.” Officials in Beijing are said to be hoping Washington will agree to some flexibility on pledges in their deal. At the end of January, President Trump signed a new trade pact with Canada and Mexico into law extending the life and updating the trading bloc created by NAFTA in the 1990s. The White House is now turning its attention to scrutinizing trade links with other nations and regions including the UK, Africa and the European Union, with whom relations started to sour in 2018 when the administration invoked national-security considerations to impose tariffs on steel and aluminum from Europe. President Trump argued on Tuesday in his State of the Union address that the administration’s tariff strategy with China has worked and will protect U.S. workers and intellectual property, open markets and “bring billions and billions of dollars into our Treasury.” Bloomberg also noted that while the remaining Chinese tariffs mean significant payment flows to the U.S. Treasury, they raise costs for importing firms who must decide whether to take this “hit” to profits, shift supply chains or pass along price increases to customers. As a share of the economy, the overall trade gap narrowed to 2.9% of gross domestic product from 3% in 2018 — still significantly smaller than in the decade before the last recession, when it approached 6%. For the full year, U.S. exports fell 0.1% to $2.5 trillion as shipments of civilian aircraft declined amid the grounding of Boeing Co.’s 737 Max plane, while sales of autos, consumer goods and petroleum gained. Imports fell 0.4% to $3.12 trillion on lower purchases of crude oil, computer accessories and telecommunications equipment. So, we will see. There continues to be significant global trade tensions that likely will continue to dampen global growth, although the phase one deal with China is being welcomed as providing significant relief in the months ahead. At the same time, there are growing uncertainties regarding the impacts of Brexit and the continuing possibility of U.S. tariffs on European autos — as well as continued fights over European tax policies on U.S. firms — debates that should be watched closely as they proceed, Washington Insider believes.
| Rural Advocate News | Thursday February 6, 2020 |
WTO’s Azevedo Calls For Real Action On WTO Reforms A realization is building that real reforms to the WTO are needed, according to Director General Roberto Azevedo. “The reality is we need very significant changes,” Azevedo said. “A few coats of paint will not be enough.” In remarks to the Washington International Trade Association (WITA), Azevedo touched on the dispute settlement process at the WTO and the appellate body, the source of U.S. complaints about the WTO process. “In my mind, I can see a much better functioning dispute settlement system, but my mind is not enough,” Azevedo said. While he did not meet with either U.S. Trade Representative Robert Lighthizer nor President Donald Trump in his visit this week, Azevedo noted he has been engaging with U.S. officials on a consistent basis. But he emphasized, “What we need to do is transform those ideas into concrete action.” As for not meeting with Lighthizer or Trump, the WTO chief said, “It does not mean that I cannot come back. I need somebody to tell me – ‘This is the time.’”
| Rural Advocate News | Thursday February 6, 2020 |
NEC’s Kudlow Expects Delay in US Exports to China National Economic Council (NEC) chief Larry Kudlow told CNBC that the China coronavirus situation is expected to have an impact on U.S. exports to China, likely delaying the increase outlined in the phase-one trade deal. “The export boom from that trade deal will take longer because of the Chinese virus,” Kudlow said of the pledge by China to boost its purchases of U.S. ag, energy, services and manufactured goods. Meanwhile, former White House aide Clete Willems said the U.S. would need to show some understanding with China on the trade front as the country confronts the coronavirus situation. "We simply do not know the scope of this and what the economic impact is going to be. It does mean that in the short term it is going to make it difficult to make progress on phase two, and there will be a conversation with respect to implementation,” Willems told Reuters in Washington. As for the impact to the U.S. economy, Kudlow said it would be “minimal,” and the U.S. was ready to help China. “We would like to make them as healthy as we can,” he said. Expectations are the situation could trim U.S. GDP by 0.2 percentage points in the first quarter and another 0.2 percentage points later in the year. “It is not a catastrophe. It is not a disaster. I think people should be very calm about this,” Kudlow said. “This is not going to be that big a deal for us.”
| Rural Advocate News | Thursday February 6, 2020 |
Thursday Watch List Markets Thursday morning's schedule should sound familiar with weekly export sales and U.S. jobless claims due out at 7:30 a.m. CST. U.S. natural gas inventories follow at 9:30 a.m. South American weather and any ag trade news will also get traders' attention. Weather Thursday features moderate to heavy rain with a threat of flooding in the Southeast, mixed precipitation and snow in the eastern Midwest, light snow in the Northern Plains, and a rain-snow mix in the Northwest. Dry conditions will be in place elsewhere. Temperatures will be colder in all areas except for the Southeast.
| Rural Advocate News | Wednesday February 5, 2020 |
Rural Mainstreet Index Starts 2020 on Solid Ground January’s Rural Mainstreet Index from Creighton University climbed to its highest level since June of 2018. It’s the fifth-straight month the reading has been above growth neutral in the survey of bank CEOs in a ten-state region that relies primarily on agriculture and/or energy. The overall index in January came in at 55.9, up from 50.2 in December. It’s the 11th time in the past 12 months that number has been above 50, which is growth neutral. “Only 17 percent of bank CEOs reported their local economy was in an economic downturn,” says Index chief Dr. Ernie Goss. “This is better than a year ago, when almost 23 percent of bank CEOs said their local economy was in a recession, or economic downturn.” Don Reynolds is chair of the Regional Missouri Bank, who says, “Farm incomes for 2019 and projections for 2020 aren’t as bleak as we expected.” The farmland and ranchland price index came in below growth- neutral for the 73rd time in the past 74 months. While December’s index was 52.8, January’s number fell to 45.6. “Two out of three Nebraska bankers say property taxes on farmland are a significant factor in reducing farm profitability,” Goss says. ********************************************************************************************** Farmland Sales Pace Picking Up in 2020 The pace of farmland sales is picking up as the calendar heads further into 2020. Sam Kain, area sales manager for Farmers National Company, says the first six months of last year were as slow as he’s seen the land market in recent memory. “The fall months and winter season saw an increase in the pace of land auctions,” Kain says. “The on-going lower supply of land for sale has helped to support land prices. Good quality cropland remains steady to strong.” Farmers National recently sold a tract of land in Iowa for $13,000 an acre, which was way above expectations. “Lower quality land takes more time and effort to get it sold,” Kain says. “That’s more typical of Wisconsin farms, due to the financial stress of the past few years in dairy. Good quality cropland still sells well in the state, while lower quality land or properties with dairy facilities struggle to sell.” Looking ahead to this year, Farmers National says attention turns to what’s going to have the biggest impact on the farm economy and land market. Producers are optimistic about improvements with China but are now concerned about how soon grain prices might improve given disease outbreaks and world grain trade fluctuations. ********************************************************************************************** New Study says Red/Processed Meat Consumption Carries Risks A new study in the Journal of the American Medical Association says red meat lovers may want to put down that slice of bacon. A CNN report says a new analysis of long-term data on nearly 30,000 people shows a small but significant risk of death from any cause tied to eating two servings of processed meat or unprocessed red meat each week. People eating two servings a week of processed meat, unprocessed red meat or poultry were all found to have similar risks of cardiovascular disease. Researchers say including poultry in that category may have more to do with frying or consuming the skin. The study says there were no associated risks for eating fish. One serving of processed meat equaled two slices of bacon, two small sausages, or one hot dog. One serving of unprocessed red meat equaled about four ounces of red meat or poultry or three ounces of fish. The new findings come out just months after a separate study that says there is no need for people to reduce their red meat and processed meat consumption for good health. Senior Study Author Norrina Allen says, “Everyone interpreted that it was OK to eat red meat, but I don’t think that’s what the science supports.” ********************************************************************************************** Crop Insurance Flooding Bill Totals $6.4 Billion Politico says flooding added a lot of money to federal crop insurance payouts last year during the growing season. The bill is $6.4 billion so far, the costliest payout on record. Most of the money is tied directly to spring and summer flooding in states like North and South Dakota, Minnesota, and Illinois. Meteorologist Steve Bowen, who works for a national insurance company, analyzed USDA data. “Given the record rainfall that occurred and the multiple waves of flooding that affected areas across the Mississippi, Missouri, and Arkansas River basins, the heightened impacts are not terribly surprising,” Bowen says. “Last year was a very tough season for farmers, and there are concerns that already saturated soils across the Plains and Midwest may set the stage for more possible flooding in 2020.” Last year wasn’t the worst in terms of overall economic costs. Taking in the amount of damage to agriculture, infrastructure, and other property, the 1993 floods along the Mississippi and Missouri rivers remain the costliest disaster in modern history, coming in at $38 billion in today’s dollars. Last year’s disaster cost about $20 billion. Last year, USDA economists found that more frequent and intense storms will ratchet up the price of crop insurance between four and 22 percent, depending on the future rates of greenhouse gas emissions. ********************************************************************************************** United Fresh Produce Industry Leadership Program Signup Period Open The signup period for the 26th edition of the United Fresh Produce Industry Leadership Program is now open. The program first began in 1995 and more than 250 produce industry professionals have graduated from the program. “As we celebrate the program’s 25th anniversary, I invite our alumni and all those who have supported their journey to pay it forward,” says Tom Stenzel, President and CEO of the United Fresh Produce Association. “Please encourage the next generation of industry leaders to apply to take part in the class and become the first fellows of the next 25 years.” The United Fresh Produce Industry Leadership Program is the only ongoing, fully paid leadership program for the produce industry. Each year, people are selected to participate in the program which is developed around four fundamental goals: leadership development; business relationships; government and public affairs; and media and public communications. Participants take part in a series of four trips during the year-long program. The trips focus on face-to-face meetings, hands-on training with top industry experts and educators, interactive experiences with leaders in Washington, D.C., and more. The participants will be named at the United Fresh 2020 Convention and Ag Expo, June 16-19, in San Diego. ********************************************************************************************** Peterson, Conaway Skeptical about Conservation Program Implementation House Ag Committee Chair Collin Peterson and Ranking Member Michael Conaway were skeptical about the Trump Administration’s implementation of conservation programs during a subcommittee hearing last week. The Ag Committee’s Conservation and Forestry Subcommittee hearing on the implementation of the 2018 Farm Bill conservation provisions got a little testy. Natural Resources Conservation Chief Matthew Lohr says his agency launched the Conservation Assistance Ranking Tool (CART) to help farmers figure out which conservation programs work best for them. “Overall, the improvements through the CART program will enhance customer experience and save 200,000 hours of staff time every year,” Lohr said during testimony. Peterson wasn’t happy, saying that Lohr hadn’t told him about it in a meeting they had, and he believes CART amounts to “more damn crazy regulations as a ‘top-down’ deal.” Conaway told Farm Service Agency Administrator Richard Fordyce that his farmers were “back home scratching their heads” over differences in rental rates for the land-idling Conservation Reserve Program in neighboring counties. “There shouldn’t be marked differences in neighboring counties,” Conaway said to Fordyce.
| Rural Advocate News | Wednesday February 5, 2020 |
Washington Insider: Punitive Tariffs for Monetary Policy Lest you think that the phase-one deal with China might mean more tranquil international markets this year, Bloomberg is reporting that the administration is going ahead with controversial new rules that would clear the way for the U.S. to apply punitive tariffs on goods from countries accused of having undervalued currencies. The move would give new muscle to U.S. complaints about currency manipulation that have in the past targeted economies like China and Japan. In the process, it could “turn the more than $6 trillion-a-day global currency market into a new battlefield in the administration’s trade wars,” Bloomberg says. The rule would allow the U.S. to impose countervailing duties on goods from countries accused of manipulating their currencies--even in cases where they were not officially found to be guilty of that by the U.S. Treasury. Past administrations have resisted calls to take such action from Congress and some industries for fear it would lead to more tit-for-tat currency wars. In the wake of the global financial crisis a decade ago, policy makers in countries such as Brazil accused the U.S. and the Federal Reserve of using monetary policy to weaken the dollar to help spur a quicker recovery in the U.S. President Donald Trump has long accused China and other countries of doing the same. Commerce Department officials on Monday presented the recent decision as simply follow-through on a 2016 campaign promise to tackle currency manipulation around the world. “This currency rule is an important step in ensuring that unfair trade practices are properly remedied,” Secretary of Commerce Wilbur Ross said. “While successive administrations have balked at countervailing foreign currency subsidies, this administration is taking action to level the playing field for American businesses and workers.” The new rule, which the Treasury Department opposed when it was first proposed in 2019, would allow U.S. companies to file complaints with the Commerce Department over specific imported products by treating undervalued currencies as a form of unfair subsidy. It would also give the administration the power to self-initiate cases should it so choose, however, potentially making the U.S. government plaintiff, judge, jury and executioner in currency fights. The Commerce Department put some caveats on its powers, saying it would “not normally include monetary and related credit policy of an independent central bank or monetary authority” in determining whether foreign governments had acted inappropriately to weaken currencies. “Commerce will seek and generally defer to Treasury’s expertise in currency matters,” it said. Still, its statement left room for unilateral action by Commerce--even if Treasury, which issues a twice-yearly report identifying currencies that are artificially weak or the subject of government manipulation, determines that a currency is not undervalued. “This appears intended as a broad signal to U.S. trading partner countries that any significant weakening of their currencies relative to the dollar could invite retaliatory actions,” said Eswar Prasad, a Cornell University economist and the author of books on the rise of the dollar and Chinese renminbi. The new rule appeared to go against guidance from a Treasury official, who said last June that the framework of any currency assessments by Commerce would be consistent with its semi-annual foreign-exchange report to Congress. The Commerce Department also indicated that said it would preserve the final power to make any determination about whether a currency’s value presented an unfair subsidy for that country’s exporters — and that the new rule would allow it to “specifically impose currency-related tariffs against China even if Treasury did not label it a currency manipulator.” The Treasury last month lifted a designation of China as a manipulator just days before President Trump signed a “Phase One” trade deal with China that includes language on currencies, though the new rule appears to give the U.S. powers to act that go beyond that included in last month’s deal. Bloomberg noted that the final rule announced Monday drew “concern from some former U.S. officials.” “This is a unilateral policy which will alienate countries around the world,” said Mark Sobel, a former Treasury official. It may also violate U.S. World Trade Organization commitments, Sobel said, although the Commerce Department insisted in its statement that “there is no WTO rule that bars the imposition of countervailing duties on subsidies conferred through currency practices.” It also prompted warnings that the rule marked another administration effort to weaponize the dollar after the president previously set out to talk down its value while blaming the Federal Reserve for causing it to strengthen to the detriment of U.S. manufacturers and other exporters. So, we will see. In general, currencies tend to be volatile and “mechanical” regulatory efforts are frequently accused of amplifying that volatility and uncertainty — a reason sometimes given by Treasury for not intervening more often. In general, it appears that the administration has ideas of additional market interventions that could threaten Fed independence, and which should be watched closely by producers as these fights continue, Washington Insider believes.
| Rural Advocate News | Wednesday February 5, 2020 |
Commerce Announces Tomato Inspection Program The Department of Commerce has announced a new inspection program for imports of certain fresh tomatoes from Mexico, according to a notice in the Federal Register, an inspection program called for under the provisions of a new tomato suspension agreement the U.S. and Mexico agreed to last year. All fresh tomato imports from Mexico will be subject to inspection except tomatoes on the vine, specialty tomatoes and grape tomatoes in retail packages of two pounds or less. USDA will conduct the inspections and the effort will start 60 days from now. As part of the agreement, the U.S. will not put antidumping and countervailing duties on imports of fresh tomatoes from Mexico as long as the suspension agreement remains in effect.
| Rural Advocate News | Wednesday February 5, 2020 |
USTR Says No Request from China For Negotiations On Ag Purchases Bloomberg reported early Monday that China was requesting flexibility from the U.S. on its purchases of ag products under the Phase One trade deal between the two countries. However, the Office of the U.S. Trade Representative (USTR) said it has received no request from China on the matter. "USTR has not received any requests from China’s government to discuss changes in China’s purchase commitments due to the coronavirus outbreak," a USTR spokesperson said in a statement. The Global Times said that purchases of goods by Chinese firms was likely to be delayed in the first quarter but that purchases could increase later this year given that the purchase comments are on an annual basis, citing Gao Lingyun, researcher at the Chinese Academy of Social Sciences. Meanwhile, some suggest that USDA may release some additional information on the USDA forecasts regarding Chinese purchases of U.S. ag goods under the phase-one agreement ahead of the February 11 WASDE report.
| Rural Advocate News | Wednesday February 5, 2020 |
Wednesday Watch List Markets Wednesday's reports start at 7:15 a.m. CST with the release of ADP's estimate of private U.S. job gains, a possible hint to Friday's unemployment report. The December trade deficit is due out at 7:30 a.m. and will provide USDA with important ag trade data that will be revealed later Wednesday morning. The U.S. Energy Department's weekly inventory reports follow at 9:30 a.m. CST. Weather Freezing precipitation and snow will extend from the Texas Big Bend to the southern and eastern Midwest Wednesday. We'll also see mixed precipitation and snow in the Northwest and rain in the Southeast. Wintry precipitation areas will have transportation and safety issues, while rain in the Southeast brings extensive flood threats. Temperatures will be seasonally cold in most northern and central areas.
| Rural Advocate News | Tuesday February 4, 2020 |
Washington Insider: The US, London and the Huawei Fight Global trade issues are increasingly complicated these days, especially when it comes to tech policies. For example, the New York Times report on technology policy this week concludes that “one of the biggest recent stories began with an announcement in London.” The background is that for weeks, observers in Washington had been waiting to see whether Prime Minister Boris Johnson would ban Huawei equipment as the U.S. has done or allow it to be used in the nation’s 5G wireless network. The United States has said for years that the company’s networking gear could give the Chinese government access to key infrastructure. Last week Prime Minister Johnson revealed his decision, that Huawei is in. The company’s equipment can be used in a portion of the 5G, or fifth-generation, network. NYT thinks this is a big setback for the administration’s global anti-Huawei push. The White House had sent top officials to London to try to sway Johnson, who is seen as a close ally to President Trump. Also, after the British announcement, the European Union told members to limit but not totally eliminate Huawei’s role in their networks. The Times raised the question of why Prime Minister Johnson decided to allow Huawei to stay involved in building Britain’s 5G network, despite all the pressure he was under from the U.S. administration? NYT believes there are a few key reasons. The practical one is that Huawei has been part of the British telecom network for years, and that 5G will be built on top of that existing system. To implement a ban now would be “extraordinarily costly” and delay the rollout of the faster network because a lot of that old kit would have to be ripped out. The second reason, NYT says, is that British intelligence and cybersecurity officials believe the risks of Huawei can be mitigated. As part of allowing Huawei to be part of its network, British officials years ago required the company to subject its products and code to tests and a lab near Cambridge does that work. For British officials, this gives them a level of confidence that the problem can be managed. Of course, American officials argue that “this is wishful thinking.” With 5G, software plays a much bigger role, meaning it will be harder to keep harmful code from slipping through. Finally, as Britain exits the European Union, many of its officials believe that it can’t afford to alienate China, which is a big investor in the country and a growing buyer of British exports. From an economic standpoint, it would be a big risk. Britain also sees 5G as a key to the country’s economic future and that any delays could put it at a disadvantage to other countries. In Washington, the Johnson decision set off a paroxysm of concerned statements from the administration and hawkish members of Congress—but perhaps not as strong as some expected. That included the statement from the White House, as well as the fact that Secretary of State Mike Pompeo traveled to Britain during the week—where U.S. criticisms were seen as muted and delivered behind “closed doors.” In addition, NYT thinks the Huawei decision is just one example of a split between how tech is regulated in the United States and in Britain but also raises the question of what the future of the “special relationship” between the U.S. and Britain will be in the future with regard to tech? The Times thinks the answer to that question, like many others these days, is complicated. For example, the report says that Britain, like many countries in Europe, is very frustrated with Big Tech and doesn’t think the companies pay their fair share in taxes. Also with Facebook and Google/YouTube, “not enough is done to limit the spread of harmful content.” Attempts to address taxes and harmful content will gain momentum this year, potentially setting up more tension with the United States. Finally, the Times notes that tech issues “cover all of Europe, not just Britain,” and the U.S. must decide where it will campaign to keep Huawei out of 5G networks. It sees Germany as another country where the United States has been applying a lot of pressure but where the politics are intense and complicated. For example, China has threatened Germany with retaliation if Huawei is banned and that threat is resonating there. Chancellor Angela Merkel has signaled she doesn’t want a ban but she is facing pressure from others in government who want to take a more aggressive approach. So, we will see. The tech issues are particularly fascinating, touching on tech, trade, politics, foreign policy and national security. They pose an increasingly severe challenge to the administration to develop a unified approach that it previously has found difficult to sustain, and which producers should watch closely as these efforts continue, Washington Insider believes.
| Rural Advocate News | Tuesday February 4, 2020 |
USDA Finally Announces Third Round of 2019 Trade Aid Payments USDA has announced that farmers will be soon receiving the third installment of 2019 Market Facilitation Program (MFP 2) payments. The payouts have been expected since early January, but officials had signaled there were still details being worked out. Through January 28, USDA issued $10.89 billion in payments under MFP 2, meaning the payment announced by USDA Monday should total around $3.6 billion. USDA Secretary Sonny Perdue has cautioned that a 2020 MFP effort is not expected to be in the cards given the phase-one trade deal signed between the U.S. and China. But the situation could change depending on how the market response plays out to the phase-one deal and amid already rising political pressure for the administration to issue another round of the aid for 2020.
| Rural Advocate News | Tuesday February 4, 2020 |
Expectations for US-China Consultations on Phase One Purchase Commitments The China coronavirus situation is expected to result in the U.S. and China undergoing consultations under the phase-one trade deal relative to purchase commitments of U.S. ag and other products under the deal. Recall consultations are called for if either party faces a delay in their purchase commitments for reasons outside of their control. Most observers expect consultations will be held between the two countries, if they have not yet been via phone/video conference. Some expect delays in purchases/shipments of one to two quarters, with the seasonality of China’s buys of U.S. ag goods potentially impacted if the purchase timeline goes beyond that in terms of any delay. It is possible that with enough supply chain disruption China will not be able to meet the schedule for phase-one purchasing commitments.
| Rural Advocate News | Tuesday February 4, 2020 |
Tuesday Watch List Markets As far as official reports go, Tuesday should be quiet with just U.S. factory orders due out at 9 a.m. CST. Traders will also continue to have an interest in South American weather forecasts and the latest reports on coronavirus. Weather Tuesday features mixed precipitation and snow in the Southern Plains and moderate to heavy rain in the southern Midwest, Delta and mid-South. Precipitation areas will have transportation and safety issues. In addition, flood threats are noted in rain locales due to already-saturated soils. Dry and seasonally cold conditions are indicated for northern areas.
| Rural Advocate News | Monday February 3, 2020 |
EPA Once Again Affirms Safety of Glyphosate Late last week, the Environmental Protection Agency once again found that the weed killer glyphosate does not cause cancer. Glyphosate is the most widely used weed killer in the U.S. The Daily Mail reports that the agency’s regulatory review again reaffirms its stance on glyphosate, the key ingredient in Bayer’s Roundup. The EPA findings come in spite of recent decisions by U.S. juries that found using the weed killer was to blame for causing plaintiffs’ cancer in some trials. In a statement, the EPA says, “There are no risks of concern to human health when glyphosate is used according to the label and that it is not a carcinogen.” Bayer, which bought Monsanto, the original maker of Roundup, was pleased with the agency’s findings. The company has long said that glyphosate and Roundup are safe and do not cause cancer. Liam Condon, Bayer’s global president for crop science, says, “Glyphosate-based herbicides are one of the most thoroughly studied products of their kind, which is a major reason why farmers around the world continue to rely on these products.” Back in 2015, the World Health Organization classified glyphosate as “probably carcinogenic to humans.” ********************************************************************************************** China Asks Food Producers to Step Up Production Despite Coronavirus The Chinese Agriculture Ministry is asking the country’s feed producers and slaughterhouses to resume their production as quickly as possible. Reuters says the goal is to add to supplies during the outbreak of the Coronavirus. China’s factories typically shut down during the Lunar New Year holidays. Those holidays have been extended to at least February 2nd to curb the spread of the virus that’s killed 170 people in China and infected close to 8,000 more people. The virus outbreak has led to a quick jump in food prices, as well as low food supplies in some cities due to panic buying and transportation disruptions. In spite of the Coronavirus outbreak, China’s transportation authority is also asking their local authorities not to cut off highways and main roads to try and limit the spread of the disease. Coronaviruses manifest differently in different hosts. The virus often causes severe respiratory disease in humans, such as pneumonia. It likely jumped from animals to humans and is transmissible between human beings. The virus first emerged in the Chinese city of Wuhan, a large city with connections both inside and outside of China. ********************************************************************************************** NBB Supports Biodiesel in USDA Infrastructure Program The National Biodiesel Board released comments in response to the USDA’s request for information on the Higher Blends Infrastructure Incentive Program. The NBB says it’s grateful that biodiesel is included in the program. The infrastructure needs for biodiesel, renewable diesel, Bioheat, and sustainable aviation fuel are different from those of other biofuels. In its comments, the group asked USDA to focus the program on investments in strategic terminals, pipeline storage, and rail expansion to create a broader downstream capacity to sell more gallons. “Investments would be best served on opportunities that would afford the greatest additional volumes of biodiesel to enter the marketplace,” the group says in its comments. “The greatest barriers to biodiesel distribution are at the terminal and pipeline terminal level, as well as railways to reach distribution centers.” Kurt Kovarik, NBB Vice President of Federal Affairs, says they’re grateful to the USDA for following through on a pledge to support infrastructure projects that facilitate higher biofuel blends. “American consumers are increasingly demanding access to clean, low-carbon, advanced biofuels, like biodiesel,” Kovarik says. “We look forward to working with the USDA to strengthen the market for higher blends of biodiesel.” ********************************************************************************************** Farm Bankruptcies Rose in 2019 Farm bankruptcies jumped by almost 20 percent last year. That is the big takeaway from court data put together by the American Farm Bureau Federation. Overall, there were almost 600 Chapter 12 family farm bankruptcies in 2019, up from almost 100 filings the previous year. Wisconsin was hit the hardest, with 57 family farms filing for bankruptcy in 2019, while Georgia was second with 41. Almost half of the nation’s filings took place in the Midwest, which totaled 46 percent of the bankruptcies. 22 percent of the filings took place in the Southeast U.S. In spite of the numbers, last year’s filings didn’t come close to the all-time high of a 33-percent increase back in 2010, the year after the Great Recession. Over the past ten years, there have been more than 5,000 farm bankruptcies. That number represents a quarter of one percent of all farm operations. Given that there are just over two million farms in the U.S., the 2019 bankruptcy rate is about 2.95 bankruptcies per 10,000 farms. On a year-over-year basis, Chapter 12 filings have increased for five consecutive quarters. ********************************************************************************************** Seasonal Farm Trade Tensions Brewing Between the U.S. and Mexico In spite of the goodwill generated after the U.S. and Mexico approved the U.S.-Mexico-Canada Agreement, there could be more tensions between the two countries surrounding produce. The Financial Post says Mexico responded to a letter from the top U.S. trade negotiator, Robert Lighthizer, pledging protectionist measures on seasonal farm trade for producers in the politically important states of Florida and Georgia. Mexico says if the U.S. takes action in any way against Mexican agricultural imports, it will respond in kind. The Deputy Trade Minister of Mexico says, “If the U.S. government takes any steps of this kind against Mexican agricultural exports, the Mexican government will apply similar measures to U.S. products.” The head of the Mexican National Farm Council says he thinks the U.S. measures would likely target the more “successful” Mexican exports like tomatoes, berries, and mangos. Those exports are worth $12 billion every year and support about 1.4 million jobs in Mexico. The council president says this potential move is about U.S. politics and Mexico’s private sector is extremely concerned. In the January 9th letter, Lighthizer pledged to explore new protections for farmers in Florida and Georgia. ********************************************************************************************** RFA, NCGA Co-Sponsor the 2020 Crappie Masters Fishing Tournament Events The 2020 season of the Crappie Masters Tournament Trail begins later this week, with the Renewable Fuels Association and the National Corn Growers Association signed on as co-title sponsors. It’s the fourth consecutive year that the two major farm groups are sponsoring the events. “We’re thrilled to be representing the Renewable Fuels Association and American Ethanol by sharing the truth about ethanol and educating our anglers, listeners, viewers, and followers,” says Crappie Masters President Mike Valentine. “For five straight seasons, all winning teams with Crappie Masters have been running E10 fuel in their boats with no problems.” This year’s competition will include stops in states like Oklahoma, Kentucky, Missouri, Kansas, Iowa, and several more. NCGA Ethanol Action Team Chair Mark Recker says, “Nearly one-third of America’s corn crop goes into the production of ethanol, an environmentally friendly fuel additive that reduces greenhouse gas emissions by 40 percent, keeping the waterways clean for fishing.” RFA President of Industry Relations Robert White says, “We’re looking forward to another great year on the water with an expanded schedule of tournaments.”
| Rural Advocate News | Monday February 3, 2020 |
Washington Insider: Climate Change and Central Banks Bloomberg is reporting this week that the world’s largest central banks are getting louder about climate change risks and “some of them are even starting to do something about it.” This new focus has raised questions over whether the banks are muddying their mission--and whether their tools will even work in this field. Critics say they can and should go a lot further. Bloomberg says that a growing body of research suggests that climate change poses the greatest long-run threat to the global economy – including inflation and financial stability, which central banks oversee. Even if the ambitious goal set in the 2015 Paris Agreement of limiting global temperature gains to 2 degrees Celsius above pre-industrial levels is met, the world’s economies are likely to be affected in important ways, from lower productivity on farms and construction sites to increased mortality and migration. That’s in addition to damage from more extreme weather events and coastal flooding. Then there are risks to the financial system. In 2015, outgoing Bank of England governor Mark Carney raised an alarm about the “tragedy” of climate change and warned specifically about “re-pricing” events. That includes physical damage that destroys the value of assets (such as waterfront hotels), imposes new liabilities on companies such as California’s now bankrupt PG&E – or sharply raises insurance prices. Another risk could be a sudden slump in the value of certain assets because of drastic government action to combat change, like the introduction of a steep carbon tax or regulations that keeps fossil fuels in the ground. Two years later, Carney and several peers created the Network for Greening the Financial System, a group that’s grown to about 50 central banks and related groups that swap research and potential policy solutions. In 2019, the group created a set of guidelines that urge peers to price in climate change risk when regulating financial companies and to invest with sustainability goals in mind for their own portfolios. To many, the mere fact that central banks are talking about the challenge is of huge significance. Each of the major banks has its own approach, depending on their legal mandate and their government’s priorities, Bloomberg notes. It describes a few examples, including the People’s Bank of China that provides direct investment in sustainable projects, encourages issuance of green bonds – and even curbs loans to polluters. Also, the Bank of Canada announced a research program on climate change at the end of 2019 and the Bank of England is in the midst of stress testing insurers and banks for how well they’d handle climate events and potential new regulation. The U.S. Federal Reserve hosted a climate change conference in November and is conducting research on the subject and the European Central Bank is set to consider climate change in its monetary policy review and Christine Lagarde, president of the EU bank, has pledged to make climate change a “mission critical” issue. Her remarks spurred discussion in financial circles of the potential for “Green QE,” or the purchase of bonds to nudge down long-term interest rates in an effort to funnel some of a central bank’s bond-buying toward green projects and companies, lowering borrowing costs for that industry. Central banks also can play a role through regulation and research, and can use their regulatory powers to do things like force banks to calculate and disclose their climate-related risks and can include climate-repricing scenarios in the stress tests they require to make sure banks are prepared for losses. That could have the effect of damping banks’ appetite for fossil-fuel investments or lending, and spur alternative energies. Still, Bloomberg notes that central banks also have very limited lawmaking capability and are generally “supposed to be independent,” and so typically avoid throwing their weight behind political agendas – especially when they contradict the priorities of the elected government. It also says that two of the world’s 10 largest economies are missing from the Network for Greening the Financial System: Brazil and the U.S., although Fed Chairman Jerome Powell said that it’s been sending representatives to meetings and will “probably” join at some point. However, Bloomberg says that critics argue that the issue “isn’t one for central banks,” which can only impact economies indirectly and should be left to politicians who can spend and invest directly. There’s also a risk that, because some see climate change as controversial, a central bank’s entry into the area will open the door for more political influence. Finally, there’s an argument that because the time horizon for monetary policy is about 2-3 years, and climate change timelines are much longer, it makes central banks ill-equipped to have a meaningful impact. So, we will see. Central banks with their large economic presence likely will be forced to take at least some steps to help their clients deal with climate uncertainty, and these likely will be highly controversial since most of their efforts are already in the cross hairs of skeptics. These issues are highly important for producers and should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday February 3, 2020 |
EPA Issues Interim Decision On Glyphosate That It Is Safe To Use EPA Thursday released its interim decision on glyphosate, the active ingredient in Roundup, saying it safe use and there “are no risks of concern to human health when glyphosate is used according to the label and that it is not a carcinogen.” The proposed interim decision issued by EPA in April 2019 also reached that conclusion. There were some 280,000 comments filed on that proposed interim decision. EPA included some updates to mitigation measures, including spray drift management requirements relating to droplet size on glyphosate labels. EPA said there will be a nontarget organism advisory to alert users to the fact that the weedkiller is toxic to plants and “may adversely impact the forage and habitat of non-target organisms, including pollinators.” EPA said it would also require those wanting approval to sell glyphosate to provide information and recommendations to slow the spread of herbicide-resistant weeds to users of the product. EPA said it would likely have a draft biological evaluation of the herbicide out for public comment this fall. The interim decision would open the way for a final registration on glyphosate that could be in effect for 15 years.
| Rural Advocate News | Monday February 3, 2020 |
Pompeo Says Food Portion Will Be Most Contentious In UK Trade Talks Trade talks with the UK are likely to be contentious, especially on food and agriculture, according to U.S. Secretary of State Mike Pompeo. He expressed a hope during remarks in London that food safety will not be used as a cover for protectionist actions. "There will be real contentious issues around agriculture," Pompeo told LBC Radio during his visit to London. “Our ask will be as it has been in the other negotiations. We need to be open and honest about competitiveness. We need to make sure we do not use food safety as a ruse to try and protect a particular industry." Pompeo outlined a timeline of hoping that by late this summer, the two sides will have made substantial progress in trade talks before moving on to address the most difficult matters.
| Rural Advocate News | Monday February 3, 2020 |
Monday Watch List Markets It is highly likely Monday will start with attention on higher counts of coronavirus infections and a surprise is possible. ISM's index of U.S. manufacturing comes out at 9 a.m. CST, followed by USDA's weekly report of export inspections at 10 a.m. At 2 p.m. CST, NASS's Fats and Oils report will show soybean crush totals for December. Weather A strong storm system in the Colorado Rockies will bring heavy snow to the western Plains and a freezing precipitation and snow mix to the central Plains Monday. Other crop areas will be dry. The Rockies storm is on track to produce areas of heavy snow in the Southern Plains and heavy rain in the southern Midwest and Delta Tuesday.
| Rural Advocate News | Friday January 31, 2020 |
FCC Launches $20 Billion Rural Broadband Fund The Federal Communications Commission Thursday approved a rural broadband funding initiative. The new Rural Digital Opportunity Fund will help finance the deployment of high-speed broadband networks in rural America. Through a two-phase reverse auction mechanism, the FCC will direct up to $20.4 billion over ten years to finance up to gigabit speed broadband networks in unserved rural areas. The FCC says the effort will connect millions more American homes and businesses to broadband. The first phase of the effort will begin later this year and target census blocks that are wholly unserved with fixed broadband at speeds of at least 25/3 megabits per second. This phase would make available up to $16 billion to census blocks where existing data shows there is no such service available. Phase two of the program will make available at least $4.4 billion to target partially served areas, census blocks where some locations lack access to 25/3 megabits per second broadband. ************************************************************************************* Magistrate Favors USDA, Beef Councils, in R-CALF Lawsuit A decision in lawsuit against the Department of Agriculture and multiple state beef checkoff’s favor the federal programs. The lawsuit, filed by R-CALF, claims there is a lack of oversight in state beef councils. However, a magistrate decision sided with USDA and the state organizations earlier this week. National Cattlemen’s Beef Association CEO Collin Woodall says the decision “was a crucial step toward ensuring state beef councils retain the important ability to direct their investments at the grassroots level.” The decision of the magistrate judge will now be forwarded to the federal district court for a final ruling. It could continue to be appealed by either party after the district court judge issues an opinion, a process that will continue over the next several months or longer, and appeals are expected. NCBA credits a recent memorandum of understanding between the state groups and USDA that reaffirms a commitment to transparent oversight for the court decision. ************************************************************************************* World Ag Expo Guarding Against Coronavirus World Ag Expo is set to host attendees and exhibitors from across the country and around the world in just two weeks. Now they will also prepare to guard against the newest coronavirus emerging in China. Show officials are working with local, state and federal officials to monitor the situation and develop a plan on the show grounds. A spokesperson for the show says, "The health and safety of everyone at our show is our top priority.” World Ag Expo is advising precautions for attendees that closely match recommendations for flu season. Those recommendations include hand washing, covering coughs, staying home if ill, and contacting a physician if symptoms arise. Travelers attending World Ag Expo who become ill should contact the local health department where they are staying, and report their illness, as well. World Ag Expo boasts an international farm show atmosphere, with more than 100,000 attendees each year in California. ************************************************************************************* AEM: USMCA A Victory for Equipment Makers This week’s signing of the U.S.-Mexico-Canada Agreement offers certainty beyond the farm for agriculture. The Association of Equipment Manufacturers says the agreement will help equipment makers grow in the United States, compete globally, and support millions of jobs across the country. Case IH North American Vice President Scott Harris serves on the AEM board of directors. Harris says that, "With commodity price stagnation and global market uncertainty, solidifying and expanding the North American market is absolutely critical for the broader agricultural community,” including AEM member dealers and customers. AEM is the North American-based international trade group representing off-road equipment manufacturers and suppliers, with more than 1,000 companies in the agriculture and construction-related industry sectors worldwide. Since the creation of NAFTA two decades ago, AEM says equipment manufacturers have benefited greatly from duty-free market access to Canada and Mexico, adding USMCA builds upon that success, supporting 1.3 million jobs in the U.S., and 149,000 more in Canada. ************************************************************************************* Report: Sustainability Improving Ag Retailers Profitability, Reputation New research shows how sustainability and conservation-focused products and services are changing the ag retail business. Research by Farm Journal's Trust In Food initiative, in partnership with the Environmental Defense Fund, suggests the focus on sustainability is leading to improvements in ag retailers' profitability and reputation. The report documents key insights gathered through in-depth interviews with nine sustainability leaders in the ag retail sector, as well as through broader feedback from a national survey of more than 70 ag retail professionals. Collectively, these professionals service each of the nine Department of Agriculture Farm Resource Regions and represent more than $1.7 billion in annual revenue. The study reveals how ag retail companies are successfully integrating products and services related to conservation agriculture and the sustainability of agriculture into their business portfolios. Organizers say the report presents a clear business case for ag retailers to dramatically transform their businesses to meet the needs of farmers, the food value chain, local communities and the world's natural resources. Find the report at trustinfood.com. ************************************************************************************ Organic Chicken Feed Subscription Launches An eCommerce store is launching organic chicken feed subscriptions. The online store, called Mile Four, offers subscription and one-time sales, targeting the backyard chicken market. Customers who subscribe to their chosen feed receive ten percent off every order and can set their delivery schedule exactly how they want, depending on the size of their flock. Founder Luke Huebner says the subscription “makes things so much easier for the buyer and the flock when feed, supplements and treats are delivered directly to their door." He says the goal of the eCommerce store is to “make raising backyard chickens as simple as possible.” Huebner grew up on a fifth-generation family farm four miles outside of a small town in western Minnesota and is self-described as an eCommerce veteran with 15 plus years of experience. The online store offers Starter, Grower and Layer Feed as well as several different supplements and treats.
| Rural Advocate News | Friday January 31, 2020 |
Washington Insider: Fed Rate Unchanged The media reported on Thursday that the Federal Reserve left interest rates unchanged at this week's first meeting of 2020. For example, the New York Times reported that the Fed upheld its "patient stance" after an active and often tumultuous 2019. Jerome Powell, the Fed chair, walked a careful line in his post-meeting news conference, painting a picture of a solid economy that is fueled by strong job gains and a confident consumer willing to spend. But he noted global risks that remain, including the outbreak of a deadly new coronavirus. He also said that price gains remain "surprisingly soft." Fed officials, whose job is to maintain both full employment and stable inflation, think the current economic situation merits a wait-and-see approach. The federal funds rate is currently set in a 1.5% to 1.75% range and the decision to keep it steady was unanimous. Powell is seen as signaling that the central bank does not plan to move policy in either direction unless something shifts "fundamentally" -- and that it does not expect to cut interest rates as long as the economy shapes up as expected, the Times said. The Fed's decision is unlikely to sit well with President Donald Trump who has been pushing it to slash rates further. In a tweet on Tuesday, the president said "the Fed should get smart & lower the Rate," arguing that comparatively high rates in the United States are putting the country at a disadvantage. The report noted that the central bank has been emphasizing recently that it does not answer to the White House and that its policy goals come from the Congress. Still, it faces a "complicated backdrop" when it comes to achieving those targets, NYT said. Expectations of a global growth turnaround have been climbing, helped along by an initial trade deal between the United States and China that forestalls additional tariffs between the two large economies. But those positive signs could be dampened by the new coronavirus, which is forcing quarantines in China where it is shuttering multinational operations and causing nervousness around the world. Powell pointed to that potential economic threat at his news conference, though he said it was too early to know what its macroeconomic effect would be. "There is likely to be some disruption to activity in China and perhaps globally," he said, adding that the Fed was "very carefully monitoring the situation." The chair also noted other persistent weak spots, including soft business investment and exports, which he attributed to "sluggish growth abroad and trade developments." Manufacturing is also continuing to see a fall off, though Powell suggested that weakness might be bottoming out. "We need to be a little bit patient about the effect on the economy." Still, Powell struck an optimistic tone about the U.S. economy overall, pointing out that employers are still hiring and unemployment continues to hover near a half-century low. He also cautioned about inflation, which continues to fall short of the Fed's 2% target. It has not hit that rate of change sustainably since the central bank formally adopted the goal in 2012. The annual price increase, as measured by the Fed, came in at just 1.5% in November. While sluggish price gains might sound positive, the Fed sees steady, gradual increases as better for the economy. Weak inflation leaves officials with less room to cut rates in a downturn. And if consumers begin to expect slower increases, that outlook could become self-fulfilling, dragging inflation down further. Fed policymakers do not expect it to eclipse 2% this year, based on their most recent set of economic projections. "In theory, inflation should be moving up," Powell added, given that the United States economy is in its 11th year of an expansion and unemployment is very low, at 3.5%. Some analysts interpreted Powell's wary tone as a sign that the Fed was still oriented more toward cutting rates than raising them. In a purely technical tweak, the central bank did nudge up the interest rates it pays on excess reserves -- bank deposits stashed at the Fed. The move was meant to keep the Fed funds rate trading within its target range. It also affirmed that it will continue purchasing Treasury bills "at least into" the second quarter of 2020, and said it would continue to conduct operations in the repo market "through April 2020 to ensure that the supply of reserves remains ample" even in stressful periods. The Fed has repeatedly said these interventions are not the type of mass bond-buying programs the central bank used to prop up the economy during and after the Great Recession. While those programs, known as quantitative easing, were meant to bolster the economy, the new interventions have been structured differently and are simply meant to fix a market-plumbing problem. Investors have turned a skeptical eye on that claim, and equity analysts regularly argue that the purchases are pushing up stock prices, as markets take a cue from the Fed to buy. So, we will see. It appears that the Fed will continue to tout its independence and that the president likely will continue his criticism. The Fed also seems prepared to take stronger action if "fundamentals" change, policies that producers should watch closely if they emerge, Washington Insider believes.
| Rural Advocate News | Friday January 31, 2020 |
USMCA Signed By Trump With Attention Shifting to Canada President Donald Trump signed the implementing legislation for the U.S.-Mexico-Canada Agreement (USMCA) Wednesday at a White House ceremony. The remaining step in the ratification process is now with Canada's parliament, which is expected to approve the deal though timing remains uncertain. Once ratification is complete, then the three countries have to embark on the process of making sure that regulations/laws reflect provisions of the updated agreement. After that process is completed, the countries are to notify each other via letters, which will start the implementation process.
| Rural Advocate News | Friday January 31, 2020 |
Concern Rising Within USDA on Slow Farmer Safety Net Signup for 2019 Crops USDA's Farm Service Agency is about to deploy a mailing campaign to remind farmers they need to enroll for 2019-crop safety net programs -- Ag Risk Coverage (ARC) and Price Loss Coverage (PLC). There are 2.3 million farms with base acres, according to FSA, and typically around 1.7 million farms enroll the programs on an annual basis. As of Jan. 27, only 327,408 farms have enrolled, FSA detailed in a notice to state and county offices outlining steps to be taken to make sure that producers meet the March 16 deadline to enroll for 2019. While county FSA offices have used a "register" when it is not possible for a producer to meet a deadline for enrollment in a program, FSA said the register must not be used "unless a producer is scheduled for an appointment or requests an appointment and the County Office does not have capability to service the producer by March 16, 2020." FSA said that appointments placed on a register "must be completed as soon as possible after the March 16, 2020, deadline." Use of the register is not considered an extension of the enrollment deadline. If a valid 2019 election and enrollment on a farm is not filed by March 16, (including enrollment registers), FSA stated, "the farm will remain with default program elections and no payments will be issued for the 2019 crop year." It is clear that farmers are waiting to gather as much information price-wise or market-wise before they make their choice on whether to go with ARC or PLC for the 2019 crop year.
| Rural Advocate News | Friday January 31, 2020 |
Friday Watch List Markets Friday marks the final day of a week dominated by concerns over the spread of coronavirus and infection counts will continue to be watched. Minor economic reports of U.S. personal income and the employment cost index are due out at 7:30 a.m. CST, followed by an index of consumer sentiment at 9 a.m. USDA releases its semi-annual cattle inventory report for January 1, set for 2 p.m. CST. Weather January ends with snow crossing the Midwest, rain in the Delta and Southeast, and mixed precipitation in the Northwest Friday. Dry conditions will be in place elsewhere. Temperatures will again be well above normal in northern and central areas. This is much different than a year ago, when the polar vortex outbreak gripped the U.S. east of the Rockies.
| Rural Advocate News | Thursday January 30, 2020 |
President Trump Signs USMCA During White House Ceremony President Donald Trump Wednesday signed the U.S.-Mexico-Canada Agreement. During a White House ceremony, Trump stated USCMA is, “the largest, most significant, modern and balanced trade agreement in history.” USMCA replaces the North American Free Trade Agreement, a trade deal Trump considered “outdated” and “terrible.” Mexico approved and signed the agreement last year. Legislation to approve the agreement in Canada was announced this week. Canada seems likely to approve the agreement within the next month, following its legislative process. Canada and Mexico are top trading partners for United States agriculture. President Trump says USMCA is “a monumental win for American farmers and ranchers, improving access to Canadian and Mexican markets.” The agreement protects current market conditions between the U.S., Mexico and Canada, and includes an estimated $2.2 billion increase in U.S. agricultural exports. The agreement is expected to grow annual dairy exports by nearly $315 million. Trump promised dairy farmers improved trade with Canada when announcing his intention to upgrade NAFTA. ************************************************************************************* Secretary Perdue: USMCA Critical for U.S. Agriculture Agriculture Secretary Sonny Perdue Wednesday proclaimed, “Today is a good day for American agriculture,” referring to President Donald Trump’s signing of the U.S.-Mexico-Canada Agreement. Perdue says USMCA"shows the rest of the world the United States is open for business," adding the agreement is critical for U.S. farmers and ranchers. Canada and Mexico are the first and second-largest export markets for United States food and agricultural products, totaling more than $39.7 billion in farm exports in 2018. Those exports, according to the Department of Agriculture, support more than 325,000 American jobs. All food and agricultural products that have zero tariffs under the North American Free Trade Agreement will remain at zero tariffs. Key provisions, Perdue says, include increasing dairy market access, along with updates to biotechnology rules, geographical indications, sanitary and phytosanitary measures, and increased market access for poultry, eggs and wheat, along with agreements to avoid technical trade barriers for wine and spirits. ************************************************************************************* Agriculture Groups Respond to USMCA Signing Agriculture groups applaud President Donald Trump for signing the U.S.-Mexico-Canada Agreement. American Farm Bureau Federation President Zippy Duvall says, “There is definitely increased optimism on farms and ranches across America and we’re grateful for the advances, but we’re also realists eager to see results.” American Soybean Association President Bill Gordon attended the signing ceremony Wednesday. Gordon states, “We reiterate our hearty thanks to both houses of Congress, the President, and their staff who worked together to make this important deal happen.” National Cattlemen’s Beef Association President Jennifer Houston also attended, and points out USMCA follows the new WOTUS rule, a Phase One trade agreement with China, and changes to the National Environmental Policy Act. Houston says, “it’s easy to see that 2020 is off to a truly historic start for U.S. beef producers.” Finally, National Farmers Union President Roger Johnson stated that while USMCA is a big step forward, “it should be a floor for future trade deals, not a ceiling.” ************************************************************************************* Trump Administration Trade Agenda Turning to EU, India The Trump administration's focus on trade continues, as officials work towards more trade agreements. Agriculture Secretary Sonny Perdue traveled to the European Union to discuss a potential trade deal this week, and talks are ongoing to reach a tentative agreement with India. Perdue maintains that "Agriculture needs to be included in a trade deal" with the European Union. Specifically, Perdue told reporters Wednesday from Rome he wants the EU to recognize the U.S. method of sanitizing chicken products, along with addressing geographic indicators and EU objections to biotechnology. Meanwhile, Politico reports U.S. Trade Representative Robert Lighthizer is expected to travel to New Delhi, India, early next month, for potential trade talks with India's Commerce Minister. President Donald Trump revoked trade benefits for India last year that cuts duties on products from developing nations. India is seeking to regain those benefits, while the U.S. wants equivalent access for U.S. agricultural products in any tentative trade deal. ************************************************************************************* NASDA Submits Hemp Program Comments to USDA This week, the National Association of State Departments of Agriculture submitted final comments on federal hemp production guidelines. The comments submitted to the Department of Agriculture highlight potential changes to the Domestic Hemp Production Program interim final rule. NASDA CEO Barb Glenn says, “We know at least 30 states will have to revise their own laws in order to comply with the requirements of the rule,” adding that without some flexibility, the rule could create competitive differences between states. NASDA recommends USDA extends the number of days in the testing window to within 15 to 30 days of harvest, along with dropping the requirement for states to use a Drug Enforcement Administration registered laboratory. Additionally, the organization suggests USDA create a tier-based approach for sampling and testing that would allow for greater flexibility for state regulators, set the negligence threshold for THC at one percent, and allow for states to develop mitigation plans, among other recommendations. The comment period closed Wednesday. ************************************************************************************ NMPF: Congress Needs to Pass DAIRY PRIDE Act for Consumers The National Milk Producers Federation says Congress needs to pass the DAIRY PRIDE Act soon to ensure the Food and Drug Administration does its job. The DAIRY PRIDE Act would designate foods that make an inaccurate claim about milk contents as "misbranded" and subject to enforcement of labeling rules. It would require FDA to issue guidance for federal enforcement of mislabeled imitation dairy products within 90 days of its passage, and require FDA to report to Congress two years after enactment. NMPF Executive Vice President Tom Balmer told the House Energy and Commerce Committee's Health Subcommittee Wednesday, "By calling these products "milk," they are clearly seeking to trade on the health halo of real milk.” Balmer says the imitators aren't nutritionally the same as milk, or the same simply by definition. The legislation would force FDA to act against plant-based imitators of milk, cheese, butter and other products that defy current FDA rules.
| Rural Advocate News | Thursday January 30, 2020 |
Washington Insider: CBO says Deficit to Top $1 Trillion U.S. officials now see the budget deficit exceeding $1 trillion annually for much of the next decade, the Congressional Budget Office (CBO) said this week. The estimates were reported by the New York Times and other media outlets. The red ink is expected to ultimately top $1.7 trillion in 2030, CBO says. The ballooning deficit is being fueled by increased borrowing by the federal government, which continues to spend more money than it takes in. By 2030, the CBO projected, federal debt held by the public will surpass $31 trillion — about 98 percent of the forecast size of the nation’s economy. The federal budget deficit already hit $1 trillion last year — the first calendar year since 2012 that the gap between revenue and spending topped the $1 trillion mark. CBO sees that as a “permanent pattern” over the next 10 years. The somber news was tempered somewhat by the budget office’s expectation that interest rates for the next decade would be substantially lower than what its August forecast indicated, saving the United States hundreds of billions of dollars in interest payments on the federal debt. The decline in interest rate projections reflects a shift in strategy by the Federal Reserve which cut rates last year amid slowing growth and little sign of sustained price increases that could spiral into rapid inflation. The budget office now expects the interest paid by 10-year Treasury bills to remain below 3 percent through 2027. President Donald Trump has pushed Fed officials to reduce rates even further, toward zero or even into negative territory. On Tuesday, hours before the new forecast was issued, he suggested lower rates would allow the United States to “refinance” its debt and begin to pay it off. The administration had promised to pay off the national debt during the 2016 campaign but in three years in office it has added to it with big tax cuts and increased federal spending. The president and Republican lawmakers have claimed the tax cuts will pay for themselves through increased economic growth, which would ostensibly produce higher tax revenues. Treasury Secretary Steven Mnuchin repeated that assertion last week in Davos, Switzerland. But while the 2017 tax cuts produced an uptick in growth in 2018, federal revenues declined. The latest CBO forecast shows no indication that officials there expect rapid growth will return any time soon, as the administration has projected. The budget office estimates the economy grew more slowly last year than it predicted in August, and sees annual growth declining from 2.2% in 2020 to 1.5% by the middle of the decade. The new forecast anticipates a sharper decline in overall tax receipts through 2029 than did the August projections. Democrats, Republicans and independent fiscal hawks all found cause for concern after the recent report. The forecast “confirms that the president’s economic policies did not create a sustained boost for the economy like he has claimed,” said Rep. John Yarmuth, D-Ky., chairman of the House Budget Committee. The committee’s top Republican, Steve Womack of Arkansas, said the forecast “once again confirms what we already know: our nation’s debt and deficits continue to grow, and we are on an unsustainable trajectory.” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said the latest numbers should serve as a wake-up call for policymakers. “We’re running trillion-dollar deficits while the economy is expanding — when are lawmakers going to wake up?” she said. “Every year we set a new postwar record for debt as a share of the economy, every year the Congressional Budget Office warns that debt is rising unsustainably, and every year our largest trust funds get closer to depleting their reserves. Ignoring what is staring us right in the face is fiscal malfeasance.” Clearly, the trillion dollar estimates are attention-catchers—and can be expected to add emphasis to questions regarding how remaining urgent needs, such as the need for renewing the nation’s infrastructure, can be met without de-stabilizing the economy. These continue to be critical issues and should be
| Rural Advocate News | Thursday January 30, 2020 |
Washington Insider: CBO says Deficit to Top $1 Trillion U.S. officials now see the budget deficit exceeding $1 trillion annually for much of the next decade, the Congressional Budget Office (CBO) said this week. The estimates were reported by the New York Times and other media outlets. The red ink is expected to ultimately top $1.7 trillion in 2030, CBO says. The ballooning deficit is being fueled by increased borrowing by the federal government, which continues to spend more money than it takes in. By 2030, the CBO projected, federal debt held by the public will surpass $31 trillion — about 98 percent of the forecast size of the nation’s economy. The federal budget deficit already hit $1 trillion last year — the first calendar year since 2012 that the gap between revenue and spending topped the $1 trillion mark. CBO sees that as a “permanent pattern” over the next 10 years. The somber news was tempered somewhat by the budget office’s expectation that interest rates for the next decade would be substantially lower than what its August forecast indicated, saving the United States hundreds of billions of dollars in interest payments on the federal debt. The decline in interest rate projections reflects a shift in strategy by the Federal Reserve which cut rates last year amid slowing growth and little sign of sustained price increases that could spiral into rapid inflation. The budget office now expects the interest paid by 10-year Treasury bills to remain below 3 percent through 2027. President Donald Trump has pushed Fed officials to reduce rates even further, toward zero or even into negative territory. On Tuesday, hours before the new forecast was issued, he suggested lower rates would allow the United States to “refinance” its debt and begin to pay it off. The administration had promised to pay off the national debt during the 2016 campaign but in three years in office it has added to it with big tax cuts and increased federal spending. The president and Republican lawmakers have claimed the tax cuts will pay for themselves through increased economic growth, which would ostensibly produce higher tax revenues. Treasury Secretary Steven Mnuchin repeated that assertion last week in Davos, Switzerland. But while the 2017 tax cuts produced an uptick in growth in 2018, federal revenues declined. The latest CBO forecast shows no indication that officials there expect rapid growth will return any time soon, as the administration has projected. The budget office estimates the economy grew more slowly last year than it predicted in August, and sees annual growth declining from 2.2% in 2020 to 1.5% by the middle of the decade. The new forecast anticipates a sharper decline in overall tax receipts through 2029 than did the August projections. Democrats, Republicans and independent fiscal hawks all found cause for concern after the recent report. The forecast “confirms that the president’s economic policies did not create a sustained boost for the economy like he has claimed,” said Rep. John Yarmuth, D-Ky., chairman of the House Budget Committee. The committee’s top Republican, Steve Womack of Arkansas, said the forecast “once again confirms what we already know: our nation’s debt and deficits continue to grow, and we are on an unsustainable trajectory.” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said the latest numbers should serve as a wake-up call for policymakers. “We’re running trillion-dollar deficits while the economy is expanding — when are lawmakers going to wake up?” she said. “Every year we set a new postwar record for debt as a share of the economy, every year the Congressional Budget Office warns that debt is rising unsustainably, and every year our largest trust funds get closer to depleting their reserves. Ignoring what is staring us right in the face is fiscal malfeasance.” Clearly, the trillion dollar estimates are attention-catchers—and can be expected to add emphasis to questions regarding how remaining urgent needs, such as the need for renewing the nation’s infrastructure, can be met without de-stabilizing the economy. These continue to be critical issues and should be watched closely as they proceeds, Washington Insider believes.
| Rural Advocate News | Thursday January 30, 2020 |
CBO Ag Baseline Updates Signal PLC To Be Safety Net Program Of Choice Ahead U.S. government outlays for farmer safety net programs are expected to be heavily weighed on the Price Loss Coverage (PLC) program in Fiscal Year (FY) 2021 and beyond, according to the Congressional Budget Office (CBO). CBO expects PLC outlays at $2.03 billion in FY 2019 and $2.23 billion in FY 2020. For FY 2021, those outlays are expected to move up to $5.24 billion and top $7 billion in FY 2022 and 2023, moving below that mark for through FY 2030, but not being any smaller than $5.08 billion in FY 2030. The FY 2020-2030 total is pegged at $62.98 billion. Outlays under the Ag Risk Coverage (ARC) program are put at $1.06 billion in FY 2019, falling to $750 million in FY 2020 and remaining in a range of $351 million (FY 2024) and $494 million (FY 2030) for a total of $5.2 billion over FY 2020-2030. As expected, the CBO update does not forecast another Market Facilitation Program (MFP) effort ahead. They estimate the 2018 MFP payments were $8.57 billion in FY 2019 with another $5.11 billion for the 2019 MFP effort. For FY 2020, CBO forecasts $10 million in outlays from the 2018 MFP with $10 billion under the 2019 MFP program.
| Rural Advocate News | Thursday January 30, 2020 |
USDA’s Perdue Says Not Clear if Coronavirus Will Impact China Buys of US Ag Goods The outbreak of the Wuhan coronavirus in China has spawned talk of whether China can meet its purchases of U.S. ag goods under the Phase One agreement signed January 15. As for how high the focus is, the issue came up while USDA Secretary Sonny Perdue held a telephone briefing with reporters from Italy to provide an update on his discussions this week with European Union (EU) officials. Asked of the China coronavirus situation could impact the commodity purchase commitments, Perdue said, “We don’t really know that yet. We would love and pray for a very quick resolution and conclusion to the coronavirus outbreak.” Coronavirus is “obviously going to have some ramifications economy wide, which we hope will not inhibit the purchase goal that we have for this year,” he concluded. The focus on this issue is coming via the following provision in the language of the Phase One trade agreement signed Jan. 15: “In the event that a natural disaster or other unforeseeable event outside the control of the Parties delays a Party from timely complying with its obligations under this Agreement, the Parties shall consult with each other.” Perdue did not say whether any such consultations have been requested on the part of China.
| Rural Advocate News | Thursday January 30, 2020 |
Thursday Watch List Markets Thursday morning is busy with weekly U.S. export sales, U.S. jobless claims and fourth-quarter GDP all due out at 7:30 a.m. CST. Weekly natural gas inventories follow at 9:30 a.m. and we can't overlook the latest news updates regarding coronavirus and South American weather. Weather Light snow will cross the Northern Plains Thursday. Other crop areas will be dry. However, fog and areas of freezing on roadways will cause transportation and safety hazards.
| Rural Advocate News | Wednesday January 29, 2020 |
Canada’s Freeland Urges Quick USMCA Approval The U.S. signing of the U.S.-Mexico-Canada Agreement Wednesday clears another hurdle towards implementation of the agreement. Following the signing ceremony, the U.S. and Mexico await approval by Canada, whose government is beginning the process this week. Canadian Deputy Prime Minister Chrystia Freeland introduced a motion in the nation’s House of Commons to consider the agreement. USMCA replaces the North American Free Trade Agreement. Freeland and Canada call the trade pact either the CUSMA, putting Canada first, or “the new NAFTA.” Freeland asked Canadian lawmakers to “work together to put Canada and Canadians first, and get this important work done without undue delay.” Freeland noted during a press conference the trade agreement received bipartisan support in the U.S. in a "highly polarized" political climate. USMCA, welcomed by U.S. agriculture, protects critical markets for U.S. farmers, and provides an additional $2 billion in agricultural exports to Canada and Mexico, the top trading partners of the United States. ************************************************************************************* House Dems Support Lawsuit Against SNAP Cuts House Democrats are seeking to block the Trump administration’s cuts to the Supplemental Nutrition Assistance Program. Changes to the SNAP Requirements for Able-Bodied Adults Without Dependents are set to take effect in April. The Department of Agriculture says the rule revises the conditions under which USDA would waive, when requested by states, the able-bodied adult without dependents time limit in areas that have an unemployment rate of over ten percent or a lack of sufficient jobs. Representative Marcia Fudge, an Ohio Democrat and chair of the House Ag Subcommittee on Nutrition, announced House support of the lawsuit, filed by 15 states, including the District of Columbia. The lawsuit says the rule strips SNAP benefits from 700,000 recipients in a move rejected by the 2018 farm bill. Representative Fudge says the rule "does real harm to SNAP’s ability to accomplish its mission,” adding the House will “fight this hypocritical and political cruelty.” ************************************************************************************* Justice Department Investigating Possible Dean Foods Deal The U.S. Justice Department is investigating a potential deal for Dairy Farmers of America to acquire the bankrupted Dean Foods. A Justice Department representative confirmed to the Wall Street Journal this week the investigation is probing the potential loss of competition in U.S. milk sales, as Dean Foods and DFA are among the largest milk processors in the country. Dairy Farmers of America represents roughly 22 percent of all U.S. milk processing, while Dean Foods is self-described as “the largest processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States.” Dean Foods announced its bankruptcy in November of last year, while pledging to use the process to “protect and support its ongoing business operations.” Dean Foods also announced at the time that it was engaged in advanced discussions with Dairy Farmers of America regarding a potential sale of all assets of the company. ************************************************************************************* USDA: One Month Left for CRP General Signup The Department of Agriculture reminds farmers interested in the Conservation Reserve Program 2020 general signup to enroll by February 28, 2020. The signup is available to farmers and private landowners who are either enrolling for the first time or re-enrolling for another ten to 15-year term. FSA Administrator Richard Fordyce notes, "This is the first opportunity for general sign up since 2016, and we want producers and private landowners to know that we have just one month remaining." CRP has 22 million acres enrolled, but the 2018 farm bill lifted the cap to 27 million acres. Signed into law in 1985, CRP is one of the largest private-lands conservation programs in the United States. It was originally intended to primarily control soil erosion and potentially stabilize commodity prices by taking marginal lands out of production. Farmers and ranchers who enroll in CRP receive yearly rental payments for voluntarily establishing long-term, resource-conserving plant species which can control soil erosion, improve water quality and develop wildlife habitat. ************************************************************************************* Chesapeake Bay Foundation Preparing to Sue EPA The Chesapeake Bay Foundation is preparing to file a lawsuit against the Environmental Protection Agency. The planned lawsuit alleges the EPA is failing to enforce the Clean Water Act. Following a 2009 lawsuit, a plan was implemented to establish a watershed-wide Total Maximum Daily Load, a limit on the pollution the Bay can withstand and remain healthy. CBF has been concerned about the lack of progress in reducing nitrogen pollution in Pennsylvania. That concern was heightened when Pennsylvania released its plan for reducing pollution between now and the 2025 deadline. The plan has a funding shortfall of more than $300 million annually, and falls 25 percent short of the nitrogen goal. CBF President William C. Baker claims, “agriculture is the largest source of pollution from Pennsylvania,” adding that while stakeholders have pledged to comply, the lawmakers have failed by not fulling funding the efforts. Without EPA holding Pennsylvania accountable, Baker says the state’s local waters and the Bay downstream “will never be saved.” ************************************************************************************ Michelob Launches Campaign to Convert Farmland to Organic An initiative by Anheuser-Busch InBev seeks to help farmers convert farmland to organic production. Michelob ULTRA Pure Gold, and AB InBev product, is launching their 60 second Super Bowl commercial featuring 6 For 6-Pack, a new program that allows consumers to join the brand in helping farmers transition six square feet of farmland into organic production. Michelob ULTRA Pure Gold is the first national beer brand to be USDA-certified organic. A portion of sales from each Pure Gold 6-pack will go directly to farmers looking to transition to organic, “allowing consumers to help drive change.” The commercial advertises that consumers can help farmers by “simply having a beer.” By the math, for every acre assisted in the program, consumers will need to drink 43,560 beers. Last year, AB InBev caught opposition from the corn industry, and sparked an advertising war with MillerCoors, by depicting corn syrup negatively, sparking lawsuits. The 2020 Michelob commercial is now available on YouTube.
| Rural Advocate News | Wednesday January 29, 2020 |
Washington Insider: Extended Steel and Aluminum Tariffs In spite of signs of some pull backs in trade policy battles, the Trump administration announced plans to broaden tariffs on foreign steel and aluminum late last week. It argued that “existing tariffs had not proved as effective as hoped in reviving American production the New York Times said Tuesday. The administration accused foreign companies of trying to “circumvent” the 25% tariff placed on foreign steel and the 10% tariff on foreign aluminum in 2018. Imports of steel and aluminum into the United States have declined since the tariffs went into place but imports of products made with those metals had “significantly increased,” the administration said. The net effect “has been to erode the customer base for U.S. producers of aluminum and steel and undermine” the effect of original tariffs, the announcement said. That led the United States to expand its tariffs to cover products made of steel and aluminum—like nails, tacks, staples, cables, certain types of wire, and bumpers and other parts for cars and tractors — as of Feb. 8. For American companies making such products, the move provided some relief. For example, Southwire, a Georgia company that makes power cable and one of the largest manufacturers calling for the new tariffs, said the measures were necessary to ensure fair competition in the market for aluminum wire. “We continue to believe that when there is a level playing field, the strength of our manufacturing comes forth,” Burt Fealing, Southwire’s general counsel, said. However, the Times said that for economists and trade experts the development was an “I told you so” moment. Economists have long argued that by raising the price of steel and aluminum, the administration’s tariffs would make it more expensive to produce things like nails or cars in the United States—and would encourage companies to import more of those items. Chad Bown, a senior fellow at the Peterson Institute for International Economics, called this an example of “cascading protectionism” that he said was “entirely predictable.” “Trump’s steel and aluminum tariffs have raised the cost of key inputs, making American companies that rely on those metals less competitive worldwide,” Bown said. “Now President Trump is expanding his tariffs to shield their products from competition as well. Where will it end?” Richard E. Baldwin, a professor of international economics at the Graduate Institute of International and Development Studies in Geneva said that the administration is “learning this particular lesson in economics one failure at a time.” In his order expanding the tariffs, President Trump pointed to large increases in imports of certain products made of steel and aluminum. For example, from June 2018 to May, imports of items including steel nails and staples rose 33% from a year earlier. Imports of aluminum wire and cable were up 152% over the same period, the administration said. President Trump continues to argue that his trade policies are delivering on his promises to revive the manufacturing sector by sheltering American businesses from unfair competition and encouraging companies to move factories back to the United States. But a study released by two economists at the Federal Reserve in December showed that the costs of the administration’s trade approach to China had outweighed its benefits for manufacturers. Tariffs offered American companies some protection from Chinese imports, the study showed. But those positive effects were more than offset by the negative effects of the trade war, including the higher prices companies must pay to import components from China and the retaliatory tariffs China had placed on the United States. Still, American producers of steel and aluminum have supported the tariffs and U.S. steel producers operated their plants at a modestly higher share of capacity this year compared to last. But in its order, the administration said capacity utilization had not stabilized above 80%, its goal. Large steel companies have ramped up their investment since the tariffs came into effect, however. However they also have faced steel prices well below recent highs, leading to decisions to idle some facilities. For example, a plant near Detroit is sending layoff notices to roughly 1,500 employees. Some analysts continue to point at China for market pressure, since it produced steel at a record level in 2019. At the same time, trade experts have questioned the legal basis for Trump’s continuing to make revisions to his metal tariffs. The administration has said Section 232 of a 1962 trade law gives the president broad powers to impose tariffs to protect American industry for matters of national security — and that domestic capacity to make iron and steel is essential for national defense. It issued broad tariffs globally, before later carving out some exemptions for Argentina, Australia, Canada, Mexico, Brazil and South Korea. But in a preliminary decision last year, the United States Court of International Trade gave a narrower interpretation of that statute, arguing that the president must act within certain periods that have already expired. So, we will see. Certainly tariffs on basic production inputs like steel and aluminum do have impacts across a broad range of products and may well become a continuing source of skepticism for the administration’s tariff-oriented trade policies. This also is likely to lead to a continuing debate that producers should watch closely in the coming months, Washington Insider believes.
| Rural Advocate News | Wednesday January 29, 2020 |
China Says It Is Bringing Its Domestic Ag Supports Into Compliance With WTO While much attention in a meeting of the WTO Dispute Settlement Body (DSB) Monday focused on the stalled appeals process as the U.S. continues to block appointment of new judges to hear appeals to WTO rulings, China offered a status report on their efforts to comply with a WTO ruling against their use of subsidies for domestic wheat, corn and rice producers. “Chinese government agencies [have] conducted intensive consultations aiming to implement the recommendations and rulings of the DSB in this dispute,” China said. Internal processes “with respect to amending relevant measures” are ongoing, officials told the WTO, noting the “complexity of measures at issue.” China said it would “accelerate the internal process and fulfil our implementation obligation in due course.” China is facing a March 31 deadline to bring its domestic ag supports for wheat, corn and rice into compliance with the ruling in the case brought by the U.S. The U.S. said it would “engage bilaterally with China on specific amendments it will make to bring its measures into compliance.”
| Rural Advocate News | Wednesday January 29, 2020 |
USDA’s Perdue Pushes EU To Follow ‘Science’ On Food, Ag Products USDA Secretary Sonny Perdue continues to press the European Union (EU) on trade issues relative to agriculture, pushing the bloc to follow “sound science” when it comes to matters on food safety, genetically modified organisms (GMOs) and other matters. Perdue is currently in Europe and met with ag ministers from EU countries. The issue of poultry trade figures to be a key as Europe said it will not accept so-called “chlorine-washed” poultry, referring to the U.S. practice of using a chemical wash to remove pathogens from chicken. Perdue said the U.S. does not use chlorine but peracetic acid. “Peracetic acid … is a great pathogen reduction treatment,” he told reporters in Brussels. “You know what it is? It is vinegar, essentially. To say that is unsafe or not to be used… we do not think there is a basis for that in sound science.” On biotechnology, Perdue also chided Europe for its views on GMO crops. “I use the example of table salt that can be hazardous if you consume it in too much quantity, but we use it regularly,” Perdue explained. “And that is why we have the MRL (maximum residue level) for pesticides.” Perdue said the stance by Europe is going to put European farmers behind since they are not able to adopt technology used by growers in other areas of the world. Perdue also heard complaints from EU farm ministers on U.S. trade policies, including the use of tariffs on a host of goods. His stance on including agriculture in any U.S.-EU trade deal was also emphasized, with him criticizing offers to remove barriers to U.S. apples, pears and shellfish as not enough. "We are not going to get there with apples and pears and shellfish. There are other things have to happen," he said.
| Rural Advocate News | Wednesday January 29, 2020 |
Wednesday Watch List Markets Wednesday's reports start with U.S. pending home sales at 9 a.m. CST. The Energy Department's weekly inventory reports follow at 9:30 a.m. and include ethanol. At 1 p.m. CST, the Federal Reserve will make a post-meeting announcement and is expected to keep interest rates steady. Weather Wednesday features light snow in the western and southern Midwest and light rain in the Delta and Deep South. Other primary crop areas will be dry. Temperatures will again be well above normal for north and central areas for this time of year.
| Rural Advocate News | Tuesday January 28, 2020 |
Court Rules Against EPA Small Refinery Waivers The Environmental Protection Agency must reconsider its small refinery exemptions, following a recent court decision. A document dated January 24 from the U.S. Court of Appeals for the 10th Circuit says the EPA overstepped its authority to grant three specific waivers in question. The decision is expected to broadly impact the EPA approach to granting waivers, according to the Renewable Fuels Association, which claims the waivers are unlawful. The court ruling stems from a May 2018 challenge brought against EPA by the Renewable Fuels Association, the National Corn Growers Association, the American Coalition for Ethanol and National Farmers Union. NFU President Roger Johnson says, “We believe this ruling will help restore the ability of the RFS to drive demand.” Among other findings, the court says EPA cannot “extend” exemptions to any small refineries whose earlier, temporary exemptions had lapsed. The court also found EPA abused its discretion in failing to explain how the agency could conclude that a small refinery might suffer a disproportionate economic hardship. ************************************************************************************* USDA to Accept Applications for the Second Round of ReConnect Funding Department of Agriculture Secretary Sonny Perdue says USDA will again accept rural broadband funding request this week. USDA will accept applications for the second round of $550 million in ReConnect Program loan and grant funding starting January 31. The funds will expand public-private partnerships in rural communities to build modern broadband infrastructure in areas with insufficient internet service. Insufficient service is defined as connection speeds of less than ten megabits per second download and one megabit per second upload. Secretary Perdue says, “we at USDA are very excited to begin accepting applications for the second round of funds.” Telecommunications companies, rural electric cooperatives and utilities, internet service providers and municipalities may apply for funding through USDA’s ReConnect Program to connect rural areas that currently have insufficient broadband service. Through the program, USDA is making available approximately $200 million for grants, as well as up to $200 million for loan and grant combinations, and up to $200 million for low-interest loans. More information is available online at www.usda.gov/reconnect. ************************************************************************************* Corps of Engineers Monitoring High Water on Upper Mississippi River The U.S. Army Corps of Engineers, St. Paul District, is monitoring high water conditions affecting parts of the Upper Mississippi River in Minnesota, Wisconsin and Iowa as a result of historic flows this winter. Cities from Winona, Minnesota, to Guttenberg, Iowa, have an increased chance of localized flooding due to ice dams. The high water conditions were created by a combination of ice dams and historic high flows. The current river flows are at levels normally observed in late spring. Irregular temperatures have also prevented ice from forming in a stable way, which compounds the ice dam problem. The ice has blocked the river’s normal flow and forced water out of its banks. It has also reduced the ability to actively manage the river water elevations. Depending on temperatures and the rate of ice melt, there could be more high water in the weeks and months ahead. the Corps is working with the National Weather Service and the U.S. Geological Survey to monitor the river and provide communication with the public. ************************************************************************************ Wisconsin Special Legislative Session Focusing on Dairy Crisis A special session of the Wisconsin legislature opening this week seeks to help the state’s struggling dairy industry. Wisconsin Governor Tony Evers signed an executive order last week to authorize the special session to consider eight agriculture-focused bills. They include farmer assistance, stress and mental health support, promoting value-added agriculture, farm grants and a focus on exports. Evers announced the plan during his State of the State Address last week, and says, “It's about investing in and supporting our rural families and communities.” The governor hopes to increase Wisconsin dairy exports to 20 percent of the nation’s milk supply by 2024. The Milwaukee Journal Sentinel reported earlier this month that last year, Wisconsin lost nearly 700 dairy farms. The Wisconsin Cheese Makers Association says the industry is challenged by trade instability, poor weather conditions, a severe labor shortage, and a decline in milk consumption. Association executive director John Umhoefer (um-hay-fer) says, “Urgent action is needed to stabilize and strengthen Wisconsin’s backbone industry.“ ************************************************************************************ United Nations Declares 2020 as the International Year of Plant Health The United Nations has declared 2020 as the International Year of Plant Health to bring worldwide attention to invasive pests. The pests destroy up to 40 percent of the world's food crops and cause $220 billion in trade losses each year, according to the United Nations. They are calling on stakeholders to work together to protect plants against the introduction and spread of invasive pests. The U.S. National Plant Protection Organization—the Department of Agriculture's Plant Protection and Quarantine—is leading the effort in the United States. Undersecretary for Marketing and Regulatory Programs, Greg Ibach (eye-bah), says “we’re urging everyone to take this issue seriously and to do their part.” According to USDA, everyone can help avoid the devastating impact of pests and diseases on agriculture, livelihoods, and food security. Tips to do so include reporting unusual signs of pests, refrain from moving firewood, and declaring food or ag items at U.S. Customs and Border Protection checkpoints when returning from international travel. ************************************************************************************ Public Lands Council Names Executive Director The Public Lands Council Monday announced that Kaitlynn Glover joined the organization as its executive director. The Public Lands Council, known as PLC, is a national trade association representing 22,000 ranchers who raise cattle and sheep on federal land. Glover will serve as the chief lobbyist for the organization, representing cattle and sheep producers in western states on resource issues affecting their operations. The legislative and regulatory portfolio focuses on protecting grazing on federal land, and includes the Clean Water Act, tax policy, the Endangered Species Act, property rights, and other matters. Glover says her top priority will focus on policies that “ensure a strong future for agriculture and healthy public lands.” Glover comes to PLC from Wyoming Republican Senator John Barrasso’s office. Originally from Wyoming, Glover has strong ties to grazers, recreationalists, and many other users of public land resources. Glover will also lead the National Cattlemen's Beef Association's natural resources policy portfolio in the organization's Washington, D.C. office.
| Rural Advocate News | Tuesday January 28, 2020 |
Washington Insider: Focus on Infrastructure, Again There is considerable media attention this week on the nation’s infrastructure needs and Bloomberg is reporting that as House lawmakers return to Washington after a recess week there are new plans “to roll out a draft infrastructure package.” The House Ways and Means Committee will be tasked with the responsibility of finding ways to fund new legislation. It plans to meet Wednesday to discuss funding and financing proposed projects. Any effort to pass a comprehensive infrastructure package in an election year would face some roadblocks, Bloomberg thinks, including the need for the president to find common ground with House Democratic lawmakers. The administration itself has called for a big infrastructure package, but it may have problems persuading congressional Republicans to support that type of legislation. The 2017 tax law, which received no Democratic votes in either chamber, imposed new limits on advanced refund bonds, which cities and counties use as a way to finance infrastructure projects. “To do something really big on infrastructure is going to take a significant hand-holding exercise, obviously, it’s going to have to be a bipartisan effort,” said Andrew Grossman, chief tax counsel for Ways and Means Chairman Richard Neal, D-Mass. “Whether or not we can get there in an election year remains to be seen but we’re still optimistic.” The New York Times also focused on infrastructure last week, noting that state voters approved $7.7 billion in transportation spending last year, but the federal government needs to do much more to fix the nation’s ragged roadways. Drivers in America topped 3.2 trillion miles in 2018, much of that on the countless roads and bridges in dire need of repair and improvement. The Times cited the American Society of Civil Engineers’ bleak picture of the country’s byways in its Infrastructure Report Card in the spring of 2017, the most recent of its every-four-years editions. The organization’s assessment resulted in an overall D-plus grade. Road conditions earned an underwhelming D, while bridges slid by with a C-plus. In all, 45% of the nation’s roads were deemed in poor condition. Since then, the group estimates that vehicle travel has increased 17% alongside an unequal 5% increase in new roadways. The result has been 6.9 billion hours a year of traffic delays, which cost motorists roughly $616 each in 2017 — the last year tracked. Federal spending on road infrastructure is struggling to keep up, the Times says. It notes that federal lawmakers staved off a cut to the national Highway Trust Fund last year that would have pulled $7.6 billion away from state highway budgets. This has left the states to fill in some of the gaps and voters around the country last year approved major transportation investments via ballot measures. “The ballot results are a great reminder infrastructure investment remains one of the few areas where red states, blue states, Republicans and Democrats can all come together,” Dave Bauer, president of the American Road & Transportation Builders Association, said. “It should also demonstrate to lawmakers on Capitol Hill that the public will be on board for the passage of a long-term bill that significantly boosts highway and transit investment at the federal level.” Jim Tymon, executive director of the American Association of State Highway and Transportation Officials, said that “States and localities are doing their part and this is a great opportunity for the federal government to do its part.” The American Society of Civil Engineers says there is a huge backlog of federal highway projects that need funding, to the tune of $836 billion. The Transportation Investment Advocacy Center at the road builders group said that most of the ballot measures involved property tax increases to pay for road repairs. The road builders group reported that 57 ballot initiatives across 12 states had the potential to raise $20 million in revenue each. All told, voters approved $7.7 billion worth of investment into transportation projects and $1.9 billion in continued funding over the next quarter-century. Washington State and Colorado were among the few to vote for tax cuts that are likely to squeeze highway budgets. The issue is important at the local level, too. The United States Conference of Mayors published a campaign agenda wish list in December that called on 2020 presidential candidates to say what they would do to stabilize the Highway Trust Fund, regulate new transportation technology and strengthen public transportation. President Trump’s initial infrastructure plan — coming in widely mocked “infrastructure week” presentations stalled several times before resurfacing again last spring. A $2 trillion infrastructure package seemed politically plausible but appears sidelined by the impeachment issue. So, we will see. State and local governments are working hard to get things done, but we need the federal government to step up with a bill, the Times said. Whether a bi-partisan effort, even for a widely supported investment, can be defined in the current toxic political environment remains to be seen and should be watched closely by producers as options are considered, Washington Insider believes.
| Rural Advocate News | Tuesday January 28, 2020 |
Extension Of Comment Period On NEPA Reforms Urged A 180-day extension of the 60-day comment period on the Trump administration’s notice of proposed rulemaking (NPRM) on the National Environmental Policy Act (NEPA) reforms has been requested by the Council on Environmental Quality. Given that the proposed rule would impact how “every single agency in the federal government considers the health and environmental impacts federal decisions,” the group said the 60-day comment period and two public meetings scheduled by EPA are “woefully inadequate” for the plan the group says would impact more than 50,000 decisions made each year by the federal government. They called for additional public meetings to be held in both rural and urban areas versus the two proposed by EPA to be held in Denver, Colorado, and Washington, D.C.
| Rural Advocate News | Tuesday January 28, 2020 |
Court Sends Some Small Refinery Exemptions Back To EPA EPA has to reconsider small refinery exemptions (SREs) issued for the 2016 compliance under the Renewable Fuel Standard (RFS), according to a decision from the U.S. Court of Appeals for the 10th Circuit. The court ruled that exemptions granted to Holly Frontier’s Woods Cross and Cheyenne refineries and CVR Energy’s Wynewood refinery were improper, stating the agency overstepped its authority as the refiners had not previously been granted SREs. The court said the statute states that any SRE granted to a refinery has to be in the form of an “extension” after 2010, yet the three refineries were given exemptions for the first time in the 2016 compliance year. "Because an 'extension' requires a small refinery exemption in prior years to prolong, enlarge or add to, the three refinery petitions in this case were improvidently granted," the court said. "We remand these matters to the EPA for further proceedings consistent with this opinion." EPA approved 19 of the 20 SRE requests received for the 2016 compliance year and it rejected only one of the requests. There are currently 21 SRE requests pending at EPA for the 2019 compliance year, already at half the level that were requested for the 2018 compliance year.
| Rural Advocate News | Tuesday January 28, 2020 |
Tuesday Watch List Markets Early Tuesday, traders will note a report of U.S. durable goods orders at 7:30 a.m. CST, followed by an index of U.S. consumer confidence at 9 a.m. South American weather forecasts and coronavirus infection counts will also get attention. The Federal Reserve begins a two-day meeting on Tuesday and is expected to keep interest rates unchanged on Wednesday afternoon. Weather Rain, freezing precipitation and snow will cross the central and southern Plains Tuesday, and the western and northern Midwest will have freezing precipitation and snow. Transportation and travel delays are in store along with safety hazards. We'll also see rain and snow in the Northwest. Temperatures will be well above normal in much of the northern and central areas for this time of year.
| Rural Advocate News | Monday January 27, 2020 |
President Trump Expected to Sign USMCA on Wednesday White House and administration officials confirmed to CNN that the president will sign the U.S.-Mexico-Canada Trade Agreement on Wednesday. The new agreement was one of the president’s biggest priorities during his term and was passed out of Congress just days before the impeachment trial began. Trump is expected to tout this agreement as an important highlight during the 2020 presidential campaign, especially in the swing states that will see a lot of benefits from the pact. For example, the agreement opens the Canadian dairy market to U.S. farmers, something Trump is likely to point out in dairy-heavy states like Wisconsin. During a speech at the American Farm Bureau’s National Convention, Trump told attendees that the agreement will “massively boost exports for farmers, ranchers, growers, and agricultural producers.” The deal was originally signed by leaders of all three countries back in November of 2018. However, the text was later changed after months of closed-door negotiations between House Democrats and the Trump Administration. The updates added additional labor protections and got rid of controversial patent protections for certain drugs. ********************************************************************************************** New WOTUS Rule Appears Headed to the Courts Environmental groups and Democratic states are already promising to sue over the new Waters of the U.S. Rule, which the Trump administration calls the “Navigable Waters Protection Rule.” The conservative-leaning Pacific Legal Foundation made a similar promise, calling the new rule not narrow enough. If the challenges happen to make it to the Supreme Court, the administration is banking on being able to win the backing of five of the justices who have a novel interpretation of the limits of federal power laid out under the Clean Water Act. Legal experts tell Politico that it’s a gamble that could result in a lasting win for the administration and its allies or a “spectacular loss.” Janette Brimmer, an attorney for the northwest office of Earthjustice, joined other environmentalists in calling the new rule “the dirty water rule.” She says, “President Trump’s administration wants our waters to burn again.” The Chesapeake Bay Foundation says, “The administration’s new definition of ‘Waters of the United States’ unravels safeguards in place since the landmark Clean Water Act first went into effect in 1972.” ********************************************************************************************** USDA Recruiting for a Trade Mission to the Philippines The U.S. Department of Agriculture will lead a trade mission to the Philippines, designed to explore new business opportunities with the island nation. The trade mission will travel to Manila on April 20-23. They’re looking for agribusiness people who want to take part in the trip. Anyone interested should apply to the USDA’s Foreign Agricultural Service by February 6. Morgan Haas is the FAS counselor for agricultural affairs in Manila. She says, “U.S. agricultural exports to the Philippines have more than doubled over the last decade, reaching a record $3 billion in 2018. Positive consumer attitudes and a healthy business climate point to continued growth potential going forward.” Haas also says local consumers in the country have an affinity for American brands, while the country’s rapidly expanding retail, food service, and food processing sectors offer robust opportunities for U.S. exporters looking to sell agricultural raw materials, high-value ingredients, and consumer-oriented food and beverage products. FAS office staff in the Philippines will arrange business meetings between trade mission delegates and local companies seeking to import American farm and food products. The trip to the Philippines is one of seven trade missions USDA has scheduled in 2020. ********************************************************************************************** Queen Approves Brexit, Potential New Ag Markets for U.S. Britain’s effort to leave the European Union was finally approved by Queen Elizabeth last week, clearing the way for the United Kingdom to make the move to independence. Royal approval was the last obstacle toward Brexit. Now it’s up to the European Union leaders to formally ratify the law in a vote scheduled for Wednesday. The EU Parliament’s constitutional affairs committee voted by a large margin last week to approve the Brexit withdrawal deal, paving the way for the final vote this week. The UK is expected to then begin trade negotiations with the EU as well as the United States soon after the move is official. The Brexit move could be very good news for American farmers, but that’s only if the UK doesn’t keep the restrictive EU-based ag policy in place that limits trade. Gregg Doud, the chief agricultural negotiator for the Office of the U.S. Trade Representative, says a new trade pact with Britain is of utmost importance to him. “In my mind, that’s a legitimate top ten market for U.S. agriculture,” Doudd says. “When that move is official, we’ll be right there ready to begin negotiations with the U.K.” Last week at the World Economic Forum in Switzerland, U.S. Commerce Secretary Wilbur Ross sounded optimistic that a deal would get done once Brexit is completed. ********************************************************************************************** Legislators Send Letter to FDA on Dairy Labeling Senator Tammy Baldwin, a Wisconsin Democrat, and Jim Risch, an Idaho Republican, have led a bipartisan coalition that sent a letter to Stephen Hahn, the new Commissioner of the Food and Drug Administration. They’re asking Hahn to stop the use of dairy terms on the labels of non-dairy products. The Hagstrom Report says under the former commissioner, the FDA began to review how to enforce regulations on what may or may not be labeled a dairy product, and the public comment period on the topic has concluded. “Dairy farmers are now waiting for action from the FDA,” the senators say in the letter. “We encourage you to move swiftly to address this unfairness and ensure that dairy terms may only be used to describe products that include dairy.” The senators say imposter products should no longer be able to get away with violating the law and taking advantage of dairy’s “good name.” Baldwin and Risch are also the cosponsors of the Dairy Pride Act of 2019. The act requires non-dairy products made from nuts, seeds, plants, and algae to no longer be labeled with dairy terms like milk, cheese, and yogurt.” ********************************************************************************************** Beef, Pork Production Hit Record Highs in December Pork and red meat production hit a monthly record in December. The USDA says pork production totaled 2.44 billion pounds, a nine percent jump over December of the previous year. Slaughter was also higher, up nine percent to 11.4 million head. The average live weight gaining was up two pounds to 288 pounds. Beef production totaled 4.72 billion pounds, a jump of eight percent over 2018. Slaughter increased to 2.75 million head, up seven percent from December of 2018. The five-pound gain for the average live weight was 1,373 pounds. December red meat production totaled 4.72 billion pounds; eight percent higher than the previous year. Unofficially, red meat production for 2019 was 54.5 billion pounds, three percent higher than in 2018. The USDA’s official red meat production numbers for 2019 come out in April. December’s dairy cow slaughter totaled 265,400 head, a jump of 9.3 million head from November and 4.2 million more than the previous December. The unofficial total for 2019 was 3.22 million head, a 71,000 head increase above the 2018 total.
| Rural Advocate News | Monday January 27, 2020 |
Washington Insider: Future Trade With China There has been something of a surge in skepticism regarding parts of the recent phase one deal with Beijing, especially China’s pledge to buy billions of dollars of U.S. foodstuffs. “The farmers are really happy with the new China Trade Deal,” the president tweeted the day after a signing ceremony in the White House. However, that “euphoria” may be fading fast, Bloomberg reported this week. The dispute exposed Beijing’s vulnerability when it comes to food imports and the Communist Party leadership is expected to do all it can to wean itself off the U.S. David MacLennan, chief executive of Cargill Inc., the world’s largest agricultural commodity trader said, “I think they don’t want to be in the same position again of being overly dependent on one supplier.” Food security has long been a Chinese policy priority and officials there remember the political impact of price rises in the late 1980s that stoked dissent in the run-up to the Tiananmen Square protests. A generation later, China is many times richer but still depends on food and other imports. For U.S. farmers, the trade deal means a potentially short-lived benefit — but possible long-term challenges as “America’s biggest customer looks elsewhere.” The extent of this response will affect the fortunes of global ag companies from traders like Cargill and Louis Dreyfus Co. to farming equipment manufactures and beyond, Bloomberg said. China has long been striving for self-sufficiency, paying huge subsidies to farmers to grow corn and rice and more than 95% of its cereal needs can now be satisfied locally. But declining arable land, water shortages and an aging farm labor force mean that domestic production alone isn’t enough in the rapidly urbanizing country, Bloomberg says. President Xi Jinping launched the Belt and Road initiative in 2013 to expand its trading routes, after also embarking on a multi-billion-dollar spree in global agriculture firms and infrastructure over the last decade. Before trade hostilities escalated in 2017, the U.S. was China’s top agricultural supplier for 18 years running, providing almost 20% of its farm goods imports amounting to $24 billion a year. In the China-U.S. trade war, imports from the U.S. tumbled 45% in 2018. Beijing slapped retaliatory levies ranging from 5% to 60% on almost all American farm goods including soybeans, pork and corn. As a result, the administration announced a $28 billion bailout for farmers. The fight also forced China to search for supplies elsewhere — and to double down on efforts to diversify, with rivals Brazil and Argentina the most obvious beneficiaries. Brazilian President Jair Bolsonaro and China’s Xi promised to continue increasing bilateral trade that surged to record levels during the trade war. China also bolstered its alliance with Argentina, opening the door to the South American nation’s soybean meal shipments for the first time. “Food security is always critical to China’s leadership, and this trade war just affirms the importance of having strong domestic production and diversified import sources,” said Li Qiang, chief analyst with Shanghai JC Intelligence Co., an influential Chinese agricultural consultant. But China is seen as unlikely to attempt to rely on South America alone. Brazil typically exports soybeans during March to September, before new-crop U.S. supplies are available. Despite record imports from Brazil, China briefly experienced a recent soybean deficit due to lack of American supply. So, it also has been looking for other sources, for example by investing in Russia and the Black Sea regions. The reality is that it will be hard for China to wean itself entirely from the U.S. China’s annual soy demand is about 110 million tons, of which domestic output satisfies just 15%, according to China’s ministry of agriculture. Thus, many Chinese officials regard the U.S. as “just too influential.” America will remain an important trading partner for soybeans, China’s minister of agriculture and rural affairs said last year. It may also prove politically expedient for Beijing to maintain some trade with Washington to keep its truce in place. There’s historical precedent for how trade disputes can permanently reshape global trade, and the lessons from a battle more than 40 years ago suggest American farmers may suffer over the longer term, Bloomberg asserts. In 1973, Washington imposed an embargo on soybean exports to Japan. The conflict lasted only five days, and Japan returned to purchase U.S. soybeans — but “has never again seen America again as a reliable supplier,” Bloomberg said. Instead it diversified purchases and invested heavily in the then-nascent Brazilian soybean industry. In addition, the Nixon administration embargoed trade with China over two decades through 1971, policies that may also have stained the U.S.’s reputation as a reliable partner in the minds of Chinese leadership. “Given those experiences, it’s not surprising they put a lot of emphasis on food security,” Friedrichs said. “They don’t want to be overly dependent on a single supplier.” So, we will see. Questions have frequently been raised across the ag industry regarding the future impacts of the recent trade fight, and these likely will resurface as the two-year duration of the current truce approaches its end—and the phase two considerations take shape. These are debates that will be crucial to ag producers and which should be watched closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday January 27, 2020 |
US Eyes Trade Deal With UK Before Year End The Trump administration is looking to complete a trade deal with the United Kingdom before the end of 2020, Treasury Secretary Steven Mnuchin said Thursday. Talks could start as soon as February. “The president is very focused ... on Europe,” Mnuchin said in an interview with CNBC. “The good news is we have seen a lot of investments in the U.S. from the European car companies. But the president wants to make sure that we have free and fair and reciprocal trade in Europe. And by the way, we are very focused on a UK Free Trade Agreement, which we hope to get done this year as well.” British Prime Minister Boris Johnson is expected in Washington next month to begin talks with President Donald Trump though the exact dates have not yet been set. Key in the U.S.-UK trade deal will be in large part dictated by the way the UK aligns itself with the EU upon Brexit. The closer it hones its rules to those of the EU, it could make it much more difficult for negotiations in areas like agriculture.
| Rural Advocate News | Monday January 27, 2020 |
EPA Finally Unveils WOTUS Replacement The final rule to replace the Obama-era Waters of the U.S. (WOTUS) rule was released by EPA Thursday, with the Navigable Waters Protection Rule representing “step two” of the plan from EPA and the U.S. Army Corps of Engineers to repeal and replace the Obama-era regulation. The rule scales back the categories of waters that fall under Clean Water Act (CWA) jurisdiction. Under the new rule, four categories would be federally regulated: The territorial seas and traditional navigable waters; perennial and intermittent tributaries to those waters; certain lakes, ponds and impoundments; and wetlands adjacent to jurisdictional waters. The rule also spells out 12 categories that would be excluded, including those that only contain water in direct response to rainfall, groundwater, ditches that are not traditional navigable waters and tributaries that are not next to wetlands. EPA also noted that states may still choose to regulate waters that do not fall under the scope of the federal CWA. The rule would become effective 60 days after being published in the Federal Register. Ag interests welcomed the rule while many environmental groups criticized the plan as expected. The rule is expected to end up being challenged in the courts.
| Rural Advocate News | Monday January 27, 2020 |
Monday Watch List Markets There are few economic reports on Monday morning other than new home sales. DTN will be watching for South American weather updates, any news about the coronavirus, and will be watching for new sales announcements, especially regarding China. We will also be looking at grain inspections. Weather Light freezing precipitation is in store for much of the western and northern Midwest Monday, causing transportation and safety hazards and delays. Hazardous fog is also indicated in the Midwest and southeastern Plains. Other crop areas will be drier. However, moderate to heavy snow is slated to form in the southwestern Plains Monday night through Tuesday.
| Rural Advocate News | Friday January 24, 2020 |
EPA Announces WOTUS Change The Environmental Protection Agency Thursday, along with the Army Corps of Engineers, announced a new “clear definition for Waters of the United States.” EPA Administrator Andrew Wheeler says the new Navigable Waters Protection Rule provides “much needed regulatory certainty and predictability for American farmers.” The rule recognizes the difference between federally protected wetlands and state protected wetlands, and adheres to the statutory limits of the agencies’ authority. The revised definition identifies four clear categories of waters that are federally regulated under the Clean Water Act: the territorial seas and traditional navigable waters, perennial and intermittent tributaries, certain lakes, ponds and impoundments, and wetlands that are adjacent to jurisdictional waters. The final action also details what waters are not subject to federal control, including features that only contain water in direct response to rainfall, groundwater, many ditches, including most farm and roadside ditches, prior converted cropland, farm and stock watering ponds, and waste treatment systems. ************************************************************************************* Ag, Environmental Groups, React to EPA WOTUS Announcement The Waters Advocacy Coalition applauds the new Clean Water rule that brings clarity and certainty to enforcement of the Clean Water Act. The coalition is a broad cross-section of small businesses, farmers, ranchers and builders, including the American Farm Bureau Federation. The Environmental Protection Agency and U.S. Army Corps of Engineers announced the WOTUS replacement Thursday. Farm Bureau President Zippy Duvall says AFBF supports the new rule, as it allows “farmers to understand water regulations without having to hire teams of consultants and lawyers.” National Pork Producers Council President David Herring says the previous WOTUS rule was “a dramatic government overreach and an unprecedented expansion of federal authority over private lands.” Now, Agriculture Secretary Sonny Perdue says the new rule removes “undue burdens and strangling regulations” from farmers. The response from agriculture was expected, as was the response from Environmental groups. The Natural Resources Defense Council says the Trump administration is “stripping protections” from streams and wetlands, adding “It's a blatant disregard for science, and for public health.” ************************************************************************************* Farmers Optimistic Despite Challenging 2019 A new poll finds farmers are optimistic for 2020, despite a challenging 2019. The DTN/Progressive Farmer Agriculture Confidence Index rose to 164.1 in December 2019, significantly higher than the Index of 110.2 in March and the December 2018 level of 109.2. The long, drawn-out, challenging crop year, along with trade battles, didn’t dampen their mood for the future, or their feelings about the Trump administration. About 75 percent of farmers said that if the 2020 presidential election was held at that time, they would vote to reelect the current administration. About a quarter said they would likely not vote for the current administration. Farmers were surveyed in mid-to-late December, when President Donald Trump announced a phase one trade agreement with China, and the House of Representatives approved the U.S.-Mexico-Canada Agreement, sending the trade deal to the Senate. The DTN/Progressive Farmer Agriculture Confidence Index is conducted three times a year, before planting, before harvest, and before the end of the year. ************************************************************************************* Export Exchange 2020 Scheduled For October The U.S. Grains Council announced Export Exchange 2020 this week, scheduled for October 7-9. The event, sponsored by the U.S. Grains Council, Growth Energy and the Renewable Fuels Association, uniquely focuses on connecting international grain buyers with U.S. suppliers. Export Exchange 2020 will take place at the Loews Kansas City hotel in Kansas City, Missouri. More than 200 international purchasers and end-users of U.S. coarse grains and related products are expected to join an estimated 300 U.S. producers, agribusinesses and representatives at the event. In addition to business-to-business meetings and an exhibit hall, the conference will address critical issues facing U.S. exports to build awareness of the benefits of U.S. corn, sorghum, distiller’s dried grains with solubles (DDGS) and other products. The grain buyers from 35 countries who attended Export Exchange 2018 in Minneapolis reported purchasing approximately 2.1 million metric tons of coarse grains and co-products traded either at the conference or immediately before or after, valued at an estimated $403 million. ************************************************************************************ Climate Change and Other Issues Move Doomsday Clock: 100 Seconds to Midnight The metaphorical Doomsday Clock set by the Bulletin of the Atomic Scientists was set at 100 seconds until midnight this week, as the organization says, “Humanity continues to face two simultaneous existential dangers—nuclear war and climate change.” Rachel Bronson, president and CEO of Bulletin of the Atomic Scientists, says, “We now face a true emergency – an absolutely unacceptable state of world affairs that has eliminated any margin for error or further delay.” Regarding climate change, the organization says governmental action still falls far short of meeting the challenge at hand. The Doomsday Clock has now moved closer to midnight in three of the last four years. While the Doomsday Clock did not move in 2019, its minute hand was set forward in 2018 by 30 seconds, to two minutes to midnight. The clock was adjusted in 2017 to two and a half minutes to midnight from its previous setting of three minutes to midnight. ************************************************************************************ Americans to Eat Record 1.4 Billion Chicken Wings for Super Bowl The National Chicken Council Thursday released its annual Chicken Wing Report, projecting Americans to consume a record-breaking 1.4 billion wings during the upcoming Super Bowl weekend. Americans’ love for wings continues to grow. This year’s wing consumption estimate is a two percent increase over 2019, meaning Americans will eat 27 million more wings during this year’s big game weekend versus last year’s. To put that in perspective, if Kansas City Chiefs’ coach Andy Reid ate three wings per minute, it would take him about 900 years to eat 1.4 billion wings. Council spokesperson Tom Super says when it comes to Super Bowl menus, wings rule the roost.” The Council asked wing-eaters about their habits, and roughly two thirds of Americans, 65 percent, who eat chicken wings, claim they like to do so while watching a major sporting event like the Super Bowl. Half, 51 percent, claim that they believe chicken wings should be the official food of the Super Bowl.
| Rural Advocate News | Friday January 24, 2020 |
Washington Insider: Did the Fed Hold the Economy Back? The fight over U.S. monetary policy continues on display. On Wednesday, President Donald Trump renewed that criticism from the sidelines of an elite gathering in Davos, Switzerland. When asked why his economic growth goal was not reached, he said, “No. 1, the Fed was not good,” Data for the full year aren’t isn’t in yet, but probably was 2.2% or 2.3% relative to the fourth quarter of 2018, economists estimate. The president also pointed to the grounding of Boeing’s 737 Max plane and severe storms as factors that held back the economy, but added that “with all of that, had we not done the big raise on interest, I think we would have been close to 4%.” Economists said that claim was not realistic. The central bank’s nine interest rate increases between 2015 and late 2018 — three of which it reversed last year — probably reined in business investment and the housing market, economists say. But that impact did not shave nearly 2 percentage points from growth. It discussed “a few ways to think through how the economy might have shaped up had the Fed acted differently.” In the “real world,” the Fed lifted rates between December 2015 and the end of 2018 in an effort to achieve a soft landing in which growth continued at a moderate pace and inflation settled around its 2% target. When growth showed signs of wavering in 2019 and inflation remained soft, Fed officials reversed course, cutting rates three times. In what it called the “most extreme counterfactual,” one in which the Fed never raised its policy interest rate at all, growth might have been 1 percentage point higher in 2019, said Ernie Tedeschi, policy economist at Evercore ISI. That estimate, based on the central bank’s main economic model, would have gotten America to around 3.2% growth in 2019 — but at a hefty cost. For example, “Inflation would’ve been well above their mandate, 2.5% and rising, at this point,” Tedeschi said, and “would have necessitated a sharp increase in rates.” Such an abrupt change could have weakened the economy and certainly “would have been painful,” he said. But even in that version of the world, one in which the Fed was willing to leave its policy totally untouched at near-zero for more than a decade, the economy could have achieved that 4% growth figure only absent a trade war — and even that is a stretch, the Times said. While it’s hard to gauge precisely how much the administration’s tariffs reduced growth, estimates suggest they could have shaved between 0.5% and 1 percentage point away in 2019, Mr. Tedeschi said. All of these projections are highly uncertain and even if the basic figures are right, “this scenario is unrealistic,” the Times said. In another version of the world, the Fed could have raised interest rates between 2015 and 2018, but then lowered them much more quickly in 2019. Had the federal funds rate dropped to zero at the very start of the year, Tedeschi said, it might have added about 0.35 percentage point to growth, getting the economy up to the 2.5% range. However, that is seen as far-fetched since the Fed has never slashed rates to zero outside of a recession. Doing so at a time when the economy was growing and the president pushing for more stimulus would have looked overtly political and could have raised the risk of higher inflation. Relative to the economy’s structural growth path — the one driven by labor force expansion and productivity — the Fed’s rate-setting may have shaved about 0.1 percentage point from growth in 2019, according to an estimate from Julia Coronado, a founder of MacroPolicy Perspectives. Slower capital expenditures and trade probably shaved another 0.1 percentage point from growth. But those effects were offset by the aftereffect of ramped-up government spending and tax cuts, which she estimates probably lifted growth by about 0.4 percentage point. But even here, there are uncertainties. While it is clear that business investment fell sharply last year and manufacturing sagged, weighing down growth, it is hard to tell how much of that was a lagged response to higher interest rates and how much was a response to the trade war. “The slowdown in capital expenditures came along when the trade war escalated,” Torsten Slok, an economist at Deutsche Bank, said in an interview. “One cautious estimate is that the trade war played a bigger role,” he said. Tax cuts and higher government spending have helped to nudge growth temporarily above its potential — it came in at 2.8 percent in 2017 and 2.5 percent in 2018, decently above the roughly 2 percent sustainable growth rate. Yet those gains probably will not hold. The working-age population is growing more slowly, and productivity, which popped temporarily, has since fallen back to earth. The Congressional Budget Office estimates that over the next decade, growth will average 1.9% a year, up slightly from the preceding decade but down substantially from the 3 percent and higher growth that prevailed before 2000. So, we will see. “We haven’t seen 4% growth for many, many years,” Slok said. Certainly, this continuing fight over monetary policy should be watched closely by producers as it intensifies during the coming campaign, Washington Insider believes.
| Rural Advocate News | Friday January 24, 2020 |
Farm Bureau policy plans call for more farmer aid The American Farm Bureau Federation has set their policy goals for 2020, including another round of trade aid for farmers. “Our members are basically saying, ‘Show us results,’” said Scott VanderWal, the group’s national vice president. He noted that “no products have moved, implementation has not happened yet, and it is kind of a ‘prove it to me’ thing.” They also are calling for a review of USDA's National Agricultural Statistics Service (NASS) and its crop reporting program, including its methodology and track record. “The June 2019 Acreage report was a debacle, and it seems like each NASS report this year has contained surprises and unexpected market impacts, etc.,” Farm Bureau said. The group also wants USDA to amend its hemp production framework to allow for plants with up to one percent tetrahydrocannabinol (THC, the chemical in cannabis), compared with the current limit of 0.3%. USDA's interim hemp rule requires “hot” crops to be destroyed at 0.5% THC levels.
| Rural Advocate News | Friday January 24, 2020 |
Grassley signs USMCA legislation Sen. Chuck Grassley, R-Iowa, took to social media Wednesday to announce he has signed the US-Mexico-Canada Agreement (USMCA) in his role in the Senate. “As President pro tem I had the honor of signing United States Mexico Canada Agreement Implementation Act w my colleagues. This trade agreement will greatly benefit Iowa. Now to Pres Trump for signature,” Grassley tweeted. Canada has yet to clear the trade deal but is expected to once their parliament returns January 27. The exact date President Donald Trump will sign the pact remains unclear, with some indications he wants to do it in farm country and with Canadian and Mexican officials present.
| Rural Advocate News | Friday January 24, 2020 |
Friday Watch List Markets Early on Friday we will see reports on personal income, consumer spending, and the core price index. Also, we will see export sales released. We will also watch for any daily export sales that might be announced, South American weather, and any hint that China may be buying ahead of their Lunar New Year. We will also be keeping an eye on coronavirus, and any new information regarding that. Weather Light to moderate snow and moderate to locally heavy rain are in store for the central and eastern Midwest, Mid South, and Southeast Friday. We'll also see rain and snow throughout the Northwest. The precipitation keeps soils saturated and will delay transportation. Other crop areas will be dry. A new storm system is slated for the central U.S. early next week.
| Rural Advocate News | Thursday January 23, 2020 |
Senate Sends USCMA to President Trump The U.S. Senate Wednesday put its finishing touches on the U.S.-Mexico-Canada Agreement. Senator Chuck Grassley, chair of the Finance Committee and Senate President Pro Tempore, signed the agreement, the final step before the agreement heads to the White House. President Donald Trump was previously expected to sign the agreement sometime this week. The ceremony Wednesday signals the end is close after the nearly three-year process of renegotiating the agreement, then further negotiations to gain U.S. congressional approval. President Trump, in January 2017, announced his intention to renegotiate the North American Free Trade Agreement. The trade talks started in May of that year. A deal was reached in September of 2018 between the U.S., Mexico and Canada. Senator Deb Fischer, a Republican from Nebraska who attended the ceremony Wednesday, says she is "proud that this critical trade agreement has finally come across the finish line.” President Donald Trump told the American Farm Bureau Federation on Sunday, that USMCA, and the agreement with China, “are just the beginning,” as his administration seeks more trade agreements. ************************************************************************************* Canada to Consider USMCA Next Week Canada will consider the passage of the U.S.-Mexico-Canada Agreement next week. Prime Minister Justin Trudeau (true-doh) told reporters this week, ”On Monday, we will introduce a Ways and Means motion, and on Wednesday we will table legislation to ratify the deal.” The comments were part of a press conference detailing plans for Canada’s Parliament, which returns to work next week. Trudeau says, “We are going to make sure that we are going to move forward in the right way, and that means ratifying this new NAFTA as quickly as possible, but responsibly in the House of Commons.” Canada is the last of three nations to take action on the agreement. Mexico has already ratified the agreement, and the U.S. has one final step to ratify the agreement, being President Donald Trump's signature. The USMCA, or CUSMA, as it’s known in Canada, is estimated to be worth an extra $2 billion annually in exports for U.S. farmers. ************************************************************************************* Farm Bureau Establishes 2020 Priorities Farmer and rancher delegates to the American Farm Bureau Federation’s 101st Annual Convention this week adopted policies to guide the organization’s work in 2020. After a year-long process to review ways to modernize Federal Milk Marketing Orders, AFBF’s delegates voted to support creation of a flexible, farmer- and industry-led milk management system. This includes giving individual dairy farmers a voice by allowing them to vote independently and confidentially on rules governing milk prices. The new dairy policies, when combined, “will form a strong foundation” to guide the organization during future reform efforts to better coordinate milk supply and demand. Delegates also updated labor and immigration policies, emphasizing the need to see significant changes to the H-2A program. And delegates also voted to support allowing a higher THC level in hemp. Delegates also re-elected American Farm Bureau President Zippy Duvall and Vice President Scott VanderWal for their third terms. VanderWal served as chair of the meeting on behalf of Duvall, who is grieving the loss of his wife, Bonnie. ************************************************************************************* Cattle Disease Traceability Continues Advancing Multiple state cattlemen’s organizations from major beef producing regions have partnered together to form U.S. CattleTrace, a disease traceability initiative. The goal is to develop a national infrastructure for disease traceability and encourage private industry’s use of the infrastructure for individualized management practices. The new U.S. CattleTrace initiative combines the efforts of CattleTrace, which includes the Kansas Livestock Association and others in Kansas, Missouri, Oklahoma, Kentucky, Oregon and Washington, as well as traceability pilot projects underway in Florida and Texas. Brandon Depenbusch, CattleTrace board of directors chairman, says the partnership “will be a catalyst to build upon the CattleTrace foundation we established the past few years.” In late August 2018, CattleTrace Inc. was formally established as a private, not-for-profit corporation to securely maintain and manage the data collected as part of the disease traceability pilot project. Volunteer leaders from each of the partner organizations have agreed to a set of guiding principles for U.S. CattleTrace. ************************************************************************************* NBB Welcomes New Biodiesel Quality Reports The National Biodiesel Board Wednesday welcomed new reports on Biodiesel fuel quality published by the National Renewable Energy Laboratory. Through funding and support from the National Biodiesel Board, NREL's statistical analysis is based on thousands of data points that were previously unavailable. The reports are comprised of data gathered from U.S. and Canadian BQ-9000 producer members. The analysis from both the 2017 and 2018 reports show that the vast majority of biodiesel readily exceeded the specification limits in ASTM D6751, the standard for biodiesel. As part of the data gathering process, biodiesel producers test their own B100 fuel at the point of production monthly, then provide NBB's National Biodiesel Accreditation Commission with the resulting data. NBAC randomizes and anonymizes the results and provide the final version to NREL for statistical analysis. NBB Technical Director Scott Fenwick says, “We now have a simpler, more efficient way to collect, analyze, and determine the quality of biodiesel.” The data was presented during a breakout session at the 2020 National Biodiesel Conference and Expo. ************************************************************************************* ASA Celebrates Its ‘First Soy Century’ The American Soybean Association is celebrating its “First Soy Century” as it recognizes its 100th anniversary throughout 2020. The roots of ASA were formed during the first Corn Belt Soybean Field Day in Camden, Indiana, in September 1920. The event drew nearly 1,000 farmers from six states, who were interested in discovering more about this emerging new commodity called soybeans. The National Soybean Growers’ Association—later renamed the American Soybean Association—was formed that year. In the century since those beginnings, ASA has continually focused on sustaining and improving the prospects and opportunities for profitability for U.S. soybean farmers. ASA plans a robust year of activities to celebrate the association’s centennial including, high profile activities at Commodity Classic, and a policy event in July at the National Museum of American History in Washington, D.C. ASA will also host a forward-looking symposium entitled “The Next Soy Century” to be held on the campus of Purdue University in August. Learn more at ASA100Years.com.
| Rural Advocate News | Thursday January 23, 2020 |
Washington Insider: Emerging GOP Climate Plans Although President Trump is widely seen as a climate-change skeptic, he announced on Tuesday that the United States will join the One Trillion Trees Initiative launched at the World Economic Forum in a global effort to combat climate change, The Hill reported this week. The president made the announcement during an address to global business leaders gathered in Davos, Switzerland. "We're committed to conserving the majesty of God's creation and the natural beauty of our world," he said, adding that the U.S. "will continue to show strong leadership in restoring, growing and better managing our trees and our forests. The Hill reported that the announcement drew “some of the most sustained applause of any portion of the president’s 30-minute speech which focused mostly on his administration's accomplishments and the strength of the U.S. economy. That economic message contrasted with other world leaders who used the forum to highlight issues like climate change and global collaboration. President Trump has been asked repeatedly at gatherings with foreign leaders about his views on climate change and the environment. He declared Tuesday that he's "a very big believer in the environment" and earlier this month told reporters he does not believe climate change is a hoax, as he once claimed. But environmentalists have been alarmed by his administration's policies, including rolling back regulations meant to curb air and water pollution and withdrawing the U.S. from the Paris climate agreement. Also speaking at Davos on Tuesday was 17-year old Swedish climate activist Greta Thunberg. Trump, in an interview with The Wall Street Journal, said he didn't "really know anything" about Thunberg and dismissed her as "very angry." The Hill also noted that House Minority Leader Kevin McCarthy, R-Calif., “teased” new details about Republicans' forthcoming climate plan Tuesday, highlighting the legislation's focus on trees as a method for capturing carbon pollution. The Republican effort focuses on traditional areas of interest for the party, including spurring green technology innovation and carbon capture. Rep. Bruce Westerman, R-Ark., who is developing the legislation that would commit the U.S. to the goal, said the plan would "go back to something old for something new and trees are the ultimate carbon sequestration." Republicans had previously hinted the plan would rely heavily on trees but it's still unclear just how many Westerman's legislation would require planting. The plan would not, however, set any targets for reducing carbon pollution, The Hill said. An ambitious plan from the Democrats outlined earlier this month would require the U.S. to rely on 100 percent clean energy by 2050. Even though Democrats have likewise expressed interest in boosting tree planting as well as green technology, the Republican plan would face an uphill battle in the House as Democrats push forward their own plan with hard targets for carbon reductions. In addition, environmental groups have already criticized the Republican bill, arguing they were pushing policies they've already thwarted. "Congressional Republicans and Donald Trump just blocked a package of clean energy tax credits from being included in the year-end tax and budget deal," Sierra Club global climate policy director John Coequyt said in a statement. "That was a serious and limited solution they failed to support, but they are suddenly serious a few weeks later after decades of climate denial." The Hill also reported that presidential candidates Michael Bloomberg and Tom Steyer are leaning into climate change as a campaign issue to stand out in a crowded Democratic field. The former New York City mayor and owner of the Bloomberg financial empire has donated millions of dollars to the Sierra Club's Beyond Coal campaign, which has worked to shutter numerous coal plants, and he has pledged to donate $500 million to close the country's remaining coal plants by 2030 Meanwhile, Steyer founded the organization NextGen America, which aims to support candidates who advocate for climate action. Both have highlighted their commitment to the issue on the campaign trail. Steyer has said that he would declare climate change a national emergency on his first day in office and Bloomberg has also said that fighting climate change would be a focus for him. "They have been super active and insistent at not only raising the profile of the issue in front of voters, making it a litmus test with elected officials, but also, especially if you look at Mike Bloomberg, using his resources ... to give big cities and major carbon users real incentives to plan for the future and a lower-carbon or carbon free future," Democratic strategist Jon Reinish said of the two candidates. The Hill also points out that both candidates have faced a certain degree of skepticism on climate issues and are contending with candidates who are polling higher than they are and who have also put heavy emphasis on climate policy. So, we will see. Clearly the public is worried about the climate and there seems to be growing pressure on candidates to weigh in on those issues which continue to be extremely contentious—and which should be watched closely by producers as these debates continue to intensify, Washington Insider believes.
| Rural Advocate News | Thursday January 23, 2020 |
Still Waiting On WOTUS The Trump administration’s new definition of Waters of the U.S. (WOTUS) is still awaited, but is now expected to be announced as early as today. Now, Sen. Chuck Grassley, R-Iowa, told reporters Tuesday he expects EPA to release the new WOTUS rule before the end of the week. “The Trump administration will set common sense limits on state versus federal jurisdiction over the waterways and make it easier for state local governments and farmers to comply,” Grassley said.
| Rural Advocate News | Thursday January 23, 2020 |
China Tries to Temper Trade Concerns Chinese Vice Premier Han Zheng told the World Economic Forum the country’s trade deal with the U.S. will not hurt rival exporting nations as complaints mount from governments that were left out of the agreement. In the most high-profile remarks on Beijing’s economic policies since the accord was signed last week, Han said that a commitment to purchase more from the U.S. is in line with its World Trade Organization obligations and will not squeeze out other imports. Han also pledged to lower barriers for foreign investors as he set out the case for China’s engagement with the global market. Meanwhile, Treasury Secretary Steve Mnuchin said in Davos that a phase-two accord with China will not necessarily be a "big bang" that removed all tariffs. "We dealt with a lot of important issues in Phase One," said Mnuchin. "If we get [Phase Two] done before the election, good. If not, fine. There is no deadline."
| Rural Advocate News | Thursday January 23, 2020 |
Thursday Watch List Markets Early Thursday morning weekly jobless claims will be out along with leading economic indicators. DTN will also be watching for any 8 a.m. flash sales announced by USDA, any sign of Chinese buying, updated weather for South America, and ethanol production and stocks. Weather Thursday features snow in the central Plains through the western, northern and central Midwest, and rain in the Delta and Deep South. This precipitation will cause transportation and safety concerns along with livestock stress. The moisture also keeps soils saturated and adds to prospects of flooding and fieldwork delays in spring. We'll also see mixed precipitation in the interior Northwest. Conditions will be chilly but not bitter-cold.
| Rural Advocate News | Wednesday January 22, 2020 |
Perdue Confirms Third Round of Trade Assistance for Farmers Ag Secretary Sonny Perdue confirmed that U.S. farmers will receive a third round of trade assistance this year to help producers with their 2019 losses. President Trump had hinted at additional aid during his address on Sunday at the American Farm Bureau national convention. However, Perdue says, “No maybe about it.” Looking ahead to 2020, the secretary doesn’t see a similar program new year because of the Phase One Trade Agreement with China, as well as other trade deals in place. “Now, let’s grow stuff, let’s produce things, and let’s sell stuff,” he told the farmers in attendance. While speaking, Perdue did acknowledge the various challenges 2019 had on U.S. agriculture but thinks there are brighter days ahead this year. “We’re talking about doubling the number of ag imports to China, way more than they’ve ever purchased from us before,” Perdue says. “And, those purchases are going to come throughout the whole United States’ ag sector.” The president said farmers told him they don’t want anything but a level playing field. Because of the trade deals he’s signed, Trump says farmers “now have what they want,” and better days are ahead. ********************************************************************************************** Perdue Open to Changing Crop Data Collection Ag Secretary Sonny Perdue talked over the weekend about his willingness to make changes in National Ag Statistics Service methods of crop data collection. A Farm Journal article says during 2019 and it’s many challenges, many farmers were openly questioning the crop projections that were coming from NASS throughout the year. Perdue admits that he had some concerns about their crop reports and the survey methods NASS uses. “In fact, it was kind of paranoia in light of all the prevented planting and other kinds of things that were falling on us,” he recalled. “We got a little conspiratorial too, thinking NASS was also out to get us.” He thinks the NASS numbers that took the market by surprise last June might have been more correct than the market ultimately was in its reaction. However, that doesn’t mean Perdue thinks the methodology for estimating crop size couldn’t be improved. “We’re going to get better,” Perdue says. “If you’ve got an idea about how we can better use electronics, or maybe an app for better surveys, we’d love to hear about it. We’re open to the kind of ideas of using modern technology to get you the best data that you can use to make plans for your farm.” ********************************************************************************************** Poll Shows Farmers still in Trump’s Corner A new poll shows farmers are still supporting President Trump. A Market Watch Dot Com article shows survey results that say 83 percent of people in the agriculture business approve of his job performance. That’s the highest level of support Trump has received from the respondents in that poll from Farm Journal. The survey of almost 1,300 people took place before President Trump spoke over the weekend at the American Farm Bureau convention. 64 percent of the respondents strongly approve of his job performance. Another 19 percent said they somewhat approve of the job the president has done. Just 13 percent of the survey respondents strongly disapprove of his job performance. The affirmation came after the U.S. and China signed a phase one trade deal and the U.S.-Mexico-Canada Trade Agreement made it through both chambers of Congress and to the president’s desk. The agreement with China calls for the Asian nation to purchase $36 billion in U.S. agricultural products in 2020 and more than $43 billion in 2021. The Dow Jones, Nasdaq, and the S &P 500 all jumped to record highs on the news, but the grain markets were a little slower to react last week. ********************************************************************************************** Minnesota Loses Over 800 Dairy Farms in Three Years The number of licensed dairy farms in Minnesota continues to drop at a steady pace. New data out from the Minnesota Department of Agriculture says 315 dairy farms left the business between January first of 2019 and New Year’s Day of 2020. That’s the second year in a row the state has lost more than 300 dairies. Further back on January first of 2017, Minnesota had 3,258 licensed dairy farms. As of January first of 2020, that number is down to 2,448 licensed dairy farms. That’s a three-year total of 810 dairy operations that are out of business. Margaret Hart, communications director for the MDA, says, “The number of farms going out of business over the last five years has been higher than normal, due in large part to a drop in prices.” It’s worth mentioning that at least some of those businesses have ceased their operations temporarily, which is referred to as “dried off.” For example, 47 dairies that stopped operation between December first, 2019, and January of 2020, are dried off. That means they intend to resume milking within 60 days. ********************************************************************************************** National Biodiesel Board CEO Shares Future Vision Statement for the Industry The National Biodiesel Conference and Expo started off Tuesday with a state-of-the-industry address from National Biodiesel Board CEO Donnell (Duh-NELL) Rehagen (REE-hagen). The CEO outlined a new public vision statement during his address to industry stakeholders. The new industry statement says, “Biodiesel, renewable diesel, and renewable jet fuel will be recognized as mainstream low-carbon fuel options with superior performance and emission characteristics. In on-road, off-road, air transportation, electricity generation, and home heating applications, use will exceed six billion gallons by 2030, eliminating over 35 million metric tons of CO2 equivalent greenhouse gas emissions annually. With advancements in our feedstock, use will reach 15 billion gallons by 2050.” Rehagen says without a clear vision for the future of the industry, including where they want to be and how they’ll get there, the industry won’t have a chance to be more than it is today. “As carbon policies around the country really begin to take hold, we see low-carbon fuels like biodiesel, renewable diesel, and renewable jet fuel with tremendous opportunities for growth,” Rehagen says. ********************************************************************************************** USDA Continues to Invest in Rural Broadband Expansion Counties in Arkansas and West Virginia are the latest to benefit from USDA funds invested to improve their access to rural broadband. USDA West Virginia State Director Kris Werner announced the agency invested $18.7 million in a high-speed broadband infrastructure project that will create or improve rural e-Connectivity for more than 6,300 rural households and almost 400 farms in several West Virginia counties. Werner says, “This will have a positive economic impact for the farms, small businesses, and families that live in these communities.” In Arkansas, USDA Rural Development State Director David Branscum announced that USDA invested another $7.1 million in two high-speed broadband infrastructure projects that will help create or improve connectivity for 1,250 rural households in north-central Arkansas. “Through the USDA’s ReConnect Program, more than 1,250 people will get access to the latest broadband technology, which will help connect them to opportunities in education, health care, and economic development,” says Branscum. “USDA has made deploying critical infrastructure across rural America a top priority because when rural America thrives, all of America thrives.”
| Rural Advocate News | Wednesday January 22, 2020 |
Washington Insider: US and France May Have Tariff Truce Bloomberg is reporting this week that Presidents Emmanuel Macron and Donald Trump agreed to a truce in their dispute over digital taxes and that “neither France nor the U.S. will impose punitive tariffs this year.” The group reported that Macron told the press on Monday he had a “great discussion” with Trump on the issue, without giving details. President Trump appeared to agree--“Excellent!” he said in a reply to Macron’s post, without providing additional information. At the time, the President was en route to Davos, Switzerland, for the World Economic Forum. A White House readout of the call was notably more muted, saying only that the “two leaders agreed it is important to complete successful negotiations on the digital services tax” and “discussed other bilateral issues.” Bloomberg noted that “neither a White House spokesman nor officials with the U.S. Trade Representative’s office would confirm that the U.S. president had called off his announced tariffs.” Still, the possible respite may defuse transatlantic tensions that had been building between Washington and Brussels along another potential trade war front. The European Union is an even bigger U.S. trading partner than China and supply chains between the two economies, particularly in automotive and financial services industries, are intertwined in ways that would make a tit-for-tat tariff dispute even more harmful to the world economy, Bloomberg said. Macron’s government still hopes to find a solution that fits within discussions at the Organization for Economic Cooperation and Development’s work on the issue, according to a French official. While the organization is still working on its proposal for taxing tech companies around the world, France pushed ahead with its own levy last year that hit U.S. internet giants like Google, Apple Inc. and Amazon.com Inc. “We now have an agreement between the two presidents to avoid any tariff escalation and avoid any trade war,” French Finance Minister Bruno Le Maire told reporters in Brussels. Paris and Washington have discussed the possibility of France suspending the collection of the digital tax payments due in April as long as the U.S. refrains from imposing new tariffs, French officials said. But that wouldn’t constitute a withdrawal of the levy, they added. For its part, the French government denies its national tax is discriminatory and warned that the EU would retaliate if the U.S. imposed additional levies. The U.S. has charged that the French tax discriminates against American technology companies. It has threatened to hit $2.4 billion of French goods with tariffs in retaliation. The dispute was another headache for European trade officials scrambling to expand their policy arsenal as the U.S. takes aim at a rules-based system for global trade that Trump argues is outdated and tilted against America. It also coincided with a change in leadership at the European Commission, the EU’s executive arm. The truce follows weeks of discussions between Treasury Secretary Steven Mnuchin and Le Maire, who were scheduled to meet Wednesday in Davos, Switzerland. The dispute has ramifications outside France as other countries try to come up with ways to generate revenue from the digital economy. Mnuchin told the Wall Street Journal that the UK and Italy will face American tariffs if they proceed with similar levies on foreign tech firms. U.S. and EU trade relations started to sour in 2018 when the U.S. administration invoked national-security considerations to impose tariffs on steel and aluminum from Europe. As a U.S. military ally, the EU was infuriated and promptly retaliated with levies on iconic American brands such as Harley-Davidson Inc. motorcycles and Levi Strauss & Co. jeans. A subsequent U.S. threat to wreak significantly more economic damage by targeting the European auto industry with duties on the same security grounds led to a hastily agreed truce and a pledge by both sides to work toward reducing industrial tariffs across the board. Since then, the administration has refused to start the tariff-cutting negotiations unless Europe includes agriculture in them. Also, it imposed levies on EU products in retaliation over government aid to Airbus SE that was deemed illegal by the WTO and disabled the WTO’s appellate body. The EU, meanwhile, is pressing ahead with a plan for tariffs against the U.S. in a parallel WTO case over unlawful subsidies to Boeing Co. “Europe has had tremendous barriers to us doing business with them. All those barriers are coming down. They have to come down,” President Trump told a conference of farmers in Austin, Texas. “If they don’t come down, we’re going to have to do things that are very bad for them.” He added, “Europe was, in many ways, more difficult – and is more difficult – than China.” So, we will see. The phase-one deal with China has been well received by many in industry, even though there is substantial skepticism regarding the achievement of the main objectives like subsidies for Chinese companies. In the case of frictions with Europe, the stakes are extremely high, once again, and producers should watch closely as these talks proceed, Washington Insider believes.
| Rural Advocate News | Wednesday January 22, 2020 |
USTR Official Explains More on China Phase On Deal U.S. Trade Representative chief ag negotiator Gregg Doud told members of the National Association of Wheat Growers and U.S. Wheat Associates that the phrase of market terms links to seasonality. “We do not expect China to buy U.S. soybeans in the middle of the Brazilian harvest. That is what that term means,” Doud observed. “The expectation is they have a commitment to make. We expect them to make that, when it is our time.” He also noted the enforcement mechanism in the deal. “Either country has the right to put tariffs on, commensurate with the value of whatever the problem is,” he remarked. Doud added that when and if that were to take place, an important part is that “the other side cannot retaliate. The goal is not to have that happen — and I will tell you, that’s very sincere on both sides.” Regarding timing, Doud indicated that 60 days appears to be a key figure in the timelines relative to when U.S. ag exports could start materializing. “China enters into force in 30 days. And the beef component of that we supposed to have in another 30 days, so that is 60 days,” Doud said. “Then you think about it in terms of what we just did in poultry. We reopened the poultry market in the middle of November.” The poultry landed in China January 14, he noted, “so that is roughly 60 days.”
| Rural Advocate News | Wednesday January 22, 2020 |
USDA’s Perdue Predicts Record Exports For US USDA Secretary Sonny Perdue told Farm Bureau members that the signing of the phase-one agreement should mean that a third round of trade aid in 2020 should not be expected by farmers. He did say that the third installment of the 2019 Market Facilitation Program (MFP 2) payments should be dispatched shortly. He pointed to the purchase by China in the deal that he believes will alter China’s usual pattern of buying U.S. ag goods in the fall and winter. "If China is going to achieve that, and we believe they are, we think they have to buy earlier than the traditional export season from the United States," Perdue observed. He also predicted that the U.S. will post a record year for U.S. ag exports, especially with the additional Chinese purchases. This will put more attention on the U.S. ag export forecast which is not scheduled to be updated until February 20.
| Rural Advocate News | Wednesday January 22, 2020 |
Wednesday Watch List Markets On this holiday-shortened week of trading, Wednesday's reports include U.S. existing home sales at 9 a.m. CST and a monthly cold storage report at 2 p.m. Traders are also paying attention to the latest weather forecasts for South America and any hints of export activity, especially from China. Weather Rain, mixed precipitation and snow will cross the eastern and southeastern Plains, western Midwest, and Delta Wednesday. Transportation delays along with safety hazards and livestock stress will occur. The precipitation also threatens flooding along with keeping soils saturated ahead of spring field work.
| Rural Advocate News | Tuesday January 21, 2020 |
Ag Secretary Expecting the Third Round of Trade Aid Payments Even though the first trade deal with China has been signed, Ag Secretary Sonny Perdue says he still expects U.S. farmers to get a third-round of 2019 trade aid payments. USDA hasn’t officially announced if and when the farmers would get those payments. Perdue tells Bloomberg that the move is still waiting for approval from the White House Office of Management and Budget. Perdue says the agreement won’t interfere with the final round of trade assistance payments made under the Market Facilitation Program. “My expectation is the third round will be issued immediately,” Perdue says. “I’m counting on it, but we’ve got to get that allocated through OMB. But I see no reason why we can’t get that done.” The U.S. government instituted the aid program as the trade war with China escalated and the Asian country implemented retaliatory tariffs on American farm goods. The first round of payments was issued last fall, with the second payments coming in the winter. Perdue did say that farmers shouldn’t expect new assistance this year beyond the $28 billion that was previously approved. The administration wants to begin phase two trade talks with China as soon as possible, with President Trump willing to travel to China to help them get going. ********************************************************************************************** Europe Next in the Trade Negotiation Bullseye Phil Hogan, the new Trade Commissioner for the European Union, was in Washington, D.C., last week and spoke about the tense relationship between the EU and the U.S. The New York Times says Hogan promises to “robustly defend” European interests as he justified the European position on trade disagreements with the U.S. over airplane subsidies, digital taxes, and the World Trade Organization. He criticized American officials for being inaccurate in claiming that trade between the U.S. and EU was unbalanced, while also saying America’s aggressive use of tariffs against trading partners was “hardly sensible.” His comments came as the U.S. is considering the use of new tariffs against the European Union trading bloc. However, Hogan ruled out the possibility of a three-way trade relationship between the EU, the U.S., and the United Kingdom in a post-Brexit world. U.S. Commerce Secretary Wilbur Ross tells Fox Business News that sealing the phase one trade deal with China and congressional passage of USMCA boosts the U.S. negotiating stance with Europe. “Our position is infinitely better already just because of these two deals,” Ross says. ********************************************************************************************** Foreign Ag Service Chases New Trade Opportunities in 2019 The U.S. Department of Agriculture’s Foreign Agricultural Service was busy looking for new trade opportunities in 2019. Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney says the agency fought throughout the year to unlock new export opportunities for U.S. agriculture around the globe. Last year, the FAS hosted six trade missions and supported exporter participation in 22 international trade shows. Together, those activities resulted in nearly $3 billion in projected 12-month sales of U.S. farm and food products across the globe. The agency also facilitated another $2 billion in exports of American commodities to Latin America, Africa, and the Middle East. McKinney says, “While the U.S. was in the process of finalizing the phase one trade agreement with China, we successfully defended U.S. wheat, corn, and rice interests against China at the World Trade Organization.” FAS staff around the globe also helped U.S. exporters in releasing hundreds of shipments that were detained at ports of entry in overseas markets, ensuring that over $95 million in perishable products arrived safely at their final destinations. “USDA efforts to break down barriers and pursue export opportunities resulted in new or expanded market access for numerous U.S. farm products in 2019,” McKinney adds. ********************************************************************************************** National Biodiesel Conference Looks to the Future The National Biodiesel Conference and Expo get underway this week at the Tampa Convention Center in Florida on Tuesday. The biggest gathering of the biodiesel industry will unveil “Vision 2020.” The industry will look to the future after ending 2019 with recent policy victories in Washington, D.C. Donnell (duh-NELL) Rehagen (REE-hagen), CEO of the National Biodiesel Board, says, “Last year at this time, U.S. biodiesel and renewable diesel producers faced an uncertain future. Thanks to our members and the support of industry champions, we’re going into the new year ready to deliver even more biodiesel to both our transportation and home heating fuel customers.” He says the conference is an opportunity to lay out the road map for the next ten years for a fuel that’s better than ever, cleaner, and now available coast-to-coast. Industry stakeholders at the conference will get new information on the latest vehicle technology, take a deep dive into the future of renewable fuels, and they’ll hear from expert speakers on environmental policy. The vehicle showcases and ride-and-drive events provide a chance to check out the latest biodiesel cars and trucks coming out from the world’s biggest manufacturers. The NBB says biodiesel is a clean-burning diesel replacement that can be used in existing diesel engines without modification. ********************************************************************************************** Farm Lending Declines at the End of 2019 Farm lending activity dropped for a second consecutive quarter at commercial banks at the end of last year. A reduction in non-real estate farm lending, particularly for operating loans, was the primary contributor to a reduced volume of loans at banks with portfolios that concentrate heavily on agriculture. The declines came along with additional reductions in production expenses, but reduced loan demand likely also was due to an increase in revenue from government payments connected to the trade disputes that lingered through the year. Following average annual growth of more than 10 percent in 2017 and 2018, and several quarters of sharp increases, lending activity contracted in the second half of last year and, on average, was five percent lower in 2019. Despite decreasing from a year ago, farm lending volumes remained higher than the 20-year average. The total volume of non-real estate loans averaged about $90 billion in 2019 and was about eight percent above the average number stretching back to 1999. ********************************************************************************************** Bureau of Land Management Taking Steps to Improve Grazing The Bureau of Land Management recently announced it’s preparing an Environmental Impact Statement (EIS) on new grazing regulations. The bureau’s Notice of Intent will appear this week in the Federal Register on January 21st. A public comment period is now open and in-person meetings will be held across the western U.S. The National Cattlemen’s Beef Association’s Federal Lands Committee and the PLC’s Grazing Regulations Working Group both call this a “once-in-a-generation opportunity for BLM permittees to set the record straight.” The groups say they’ve endured Bruce Babbitt’s “Range Reform” for more than 25 years, with the land, native grasses, and local ranching families suffering as a result. The groups both say this is a great first step to righting that wrong and can’t emphasize enough how important it is for ranchers to submit comments and participate in the meetings. More information can be found on the BLM website.
| Rural Advocate News | Tuesday January 21, 2020 |
WASHINGTON INSIDER: FDA'S RECENT TUNA RECALL DECISION Food Safety News is running a guest editorial this week on the need to recall tainted tuna. The writer is Sandra Eskin who directs the Pew Charitable Trusts' work on food safety, a non-partisan, global research and public policy effort dedicated to serving the public interest. The editorial focuses on a recently announced FDA interpretation of authority on mandatory recalls that it claims "weakens food safety." The writer says that the Food and Drug Administration decided late last year not to order a mandatory recall of yellowfin tuna that sickened at least 50 people in 11 states—and thereby "threatens to undermine a crucial tool of last resort to protect consumers from hazardous food." "She urges FDA leaders to reverse course and require that the companies responsible for these products remove them from the market." In a Nov. 15 announcement, the agency said the illnesses were caused by imported tuna with high levels of scombrotoxin, a substance produced when certain fish species spoil. The company supplying most of the implicated tuna has not initiated a recall, despite an FDA request. In fact, she asserts that "these products could still be on the market," according to the agency and neither cooking nor freezing them will make them safe to eat. A Dec. 26 FDA update on the investigation said that additional illnesses had been reported and voluntary recalls by business customers of the fish supplier "have not effectively removed" the dangerous tuna from the market. Still, the agency stopped short of mandating a recall, Eskin noted. Congress armed the agency for exactly this kind of situation in 2011's FDA Food Safety Modernization Act. The law authorized mandatory recalls when companies do not conduct them voluntarily for products that may cause "serious adverse health consequences or death" to people or animals. The agency's initial announcement, however, argued that "because scombrotoxin fish poisoning causes temporary or medically reversible adverse health consequences this incident did not meet the threshold for the use of FDA's mandatory recall authority." Eskin argues that this interpretation of the law "fails to protect Americans from preventable illnesses." Scombrotoxin poisoning can cause serious adverse health consequences including nausea, headache, faintness, abdominal cramps, and diarrhea. According to the FDA, "severe cases may blur vision, and cause respiratory stress and swelling of the tongue." Patients may require medical treatment such as intravenous fluids, oxygen, and antihistamines, and people with particularly serious reactions to the toxin have experienced cardiac complications and low blood pressure. In addition, Eskin charges that this decision by FDA could set a dangerous precedent, one that may encourage companies to disregard requests for voluntary recalls or to challenge agency-mandated recalls on the grounds that the harm likely done by their products is not serious enough. The agency's response also runs counter to pledges by its leaders to "make more robust use of mandatory recall authority"—a power used just three times since FSMA's enactment nine years ago, Eskin says. In November 2018 FDA released final guidance to clarify for businesses when and how it will exercise this authority for potentially contaminated food. Then-Commissioner Scott Gottlieb explained the goal: "Our aim is to expand the appropriate use of our mandatory recall authority in cases where we have to intervene quickly to help protect consumers from unsafe products." The ongoing outbreak of scombrotoxin poisoning presents a crucial test of this commitment, Eskin says. "The agency's overly restrictive interpretation of serious adverse health consequences" undermines both the letter and the spirit of FSMA. She calls on FDA leaders to reconsider their response in this case and, going forward, should make greater use of mandatory recall authority to protect the public from preventable foodborne infections. Recalls of contaminated food products are an important regulatory tool of food inspection agencies, but are wielded reluctantly because of the inconvenience and cost to manufacturers. As a result, FDA has long been reluctant to impose recalls—and in cases where products have been recalled, have taken significant steps to make sure these have been as sensitive as possible to producer interests. The new FSMA was designed to provide rules that to make clear specific actions to be taken to protect consumers from exposure to contaminated food products—and to strengthen what was seen by many as the agencies reluctance to impose tough safeguards. These rules are crucially important to the credibility of the national food safety effort and debates about how those safeguards are defined and implemented should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday January 21, 2020 |
CHINA KEEPS INSISTING PURCHASES OF US AG GOODS WILL BE BASED ON MARKET CONDITIONS Chinese officials continue to reiterated what Vice Premier Liu He said at the signing ceremony for the Phase One deal with the U.S. -- the purchases China has committed to making will be made based on market conditions. The purchases will also follow WTO rules, said Li Xingqian, head of foreign trade department at Ministry of Commerce. In remarks in Beijing, he said that the increased imports from the U.S. will not affect imports from other countries. China's Liu made the same point in this remarks at the signing ceremony. Further, Li said that the Chinese has large potential and it welcomes high quality and competitive U.S. goods.
| Rural Advocate News | Tuesday January 21, 2020 |
TRUMP TOUTS US-CHINA DEAL, WOTUS ACTIONS IN FARM BUREAU REMARKS President Donald Trump addressed the American Farm Bureau Federation annual meeting for the third year in a row, and predictably Trump spent a good portion of his time before the gathering talking about Phase One of the agreement signed with China on Jan. 15. He dubbed the accord "a bonanza for American farmers, adding he thinks the pact is "going to work out well. I think China is going to go all out. … I think they're looking to prove that it's going to be great for the farmer." Trump also pointed to regulatory relief measures his administration had taken, including the repeal of "waters of the U.S." (WOTUS) rule that expanded federal jurisdiction over some wetlands and streams. "As long as I'm president, government will never micromanage America's farmers. You're going to micromanage your own farm and that's the way it should be," Trump said. Trump also highlighted actions by the administration on issues like broadband access and farm labor. "We want them *immigrants) to come in, legally, and we want them to come in so they can help the farmer, just so you understand because I want them to be able to come in to help our farmers, and we're going to give you plenty of help," Trump said.
| Rural Advocate News | Tuesday January 21, 2020 |
Tuesday Watch List Markets Tuesday starts with a report on U.S. housing starts at 7:30 a.m. CST, followed by U.S. industrial production at 8:15 a.m. and an index of U.S. consumer sentiment at 9:00 a.m. South American weather forecasts remain of interest as do any clues of export activity after Wednesday's phase one agreement. Weather Snow and freezing rain are in store for the central and south-central Plains and western Midwest Friday, causing safety and transportation hazards and stressing livestock. Southern Plains areas will have moderate to locally heavy rain, favoring wheat moisture. Bitter cold will be confined to the Canadian Prairies.
| Rural Advocate News | Friday January 17, 2020 |
Senate Passes USMCA The Senate Thursday morning passed the U.S.-Mexico-Canada Agreement, sending it to President Donald Trump’s desk. The Senate vote, 89-10, moves the agreement ahead of the impeachment trial in the Senate. President Trump is expected to sign the agreement sometime next week during a formal ceremony, perhaps while the impeachment trial is underway. House Democrats took more than a year to make changes to the original agreement negotiated by the Trump administration. For agriculture, USMCA is expected to increase U.S. exports by $2 billion. The vote comes just one day after the United States signed a new trade agreement with China, which promises to increase agricultural exports overseas by tens of billions of dollars. On Twitter, President Trump proclaimed, “The farmers are really happy with the new China trade deal and the soon to be signed deal with Mexico and Canada.” The President said he hopes farmers remember he used tariff funds to “help them get through the tough times.” ************************************************************************************* Agriculture Reacts to USMCA Senate Passage Agriculture organizations offered applause to lawmakers in the Senate who overwhelming supported approval of the U.S.-Mexico-Canada Agreement Thursday. National Corn Growers Association President Kevin Ross says the vote ensures “corn farmers will continue to have access to our largest and most reliable markets.” Mexico is a top destination for U.S. corn. Meanwhile, Bill Gordon of the American Soybean Association says the vote “means we can start 2020 on a more positive note.” Mexico is the number two market for whole beans, meal and oil, and Canada is a top ten buyer of meal and oil. U.S. Meat Export Federation CEO Dan Halstrom says the vote “bolsters our position as a reliable supplier to two leading markets that account for about one-third of all U.S. red meat exports.” Meat shipments to Mexico and Canada in 2019 totaled about 1.25 million metric tons valued at $3.8 billion. Finally, American Farm Bureau Federation President Zippy Duvall says USMCA “comes at a critical time for farmers and ranchers, increasing optimism that we’ll turn the corner in 2020.” ************************************************************************************* Secretary Perdue Statement on Senate Passage of USMCA Agriculture Secretary Sonny Perdue says of the U.S.-Mexico-Canada Agreement, farmers "are eager to see the President sign this legislation and begin reaping the benefits." Canada and Mexico are the first and second-largest export markets for United States agricultural products, totaling more than $39.7 billion in food and agricultural exports in 2018. Under the agreement, all food and agricultural products that have zero tariffs under the North American Free Trade Agreement will remain at zero tariffs. Since the original NAFTA did not eliminate all tariffs on agricultural trade between the United States and Canada, the USMCA will create new market access opportunities for United States exports to Canada of dairy, poultry, and eggs, and in exchange, the United States will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products. The agreement specifically addresses agricultural biotechnology, including new technologies such as gene editing, to support innovation and reduce trade-distorting policies, and the agreement institutes a more rigorous process for establishing geographical indicators. ************************************************************************************* USDA Reminds Producers to Pay Their Crop Insurance Premiums by January 31 The Department of Agriculture’s Risk Management Agency is reminding producers that their crop insurance premiums for the 2019 crop year are due January 31. Policies that do not have the premium paid by January 31, 2020, will have interest attach on February 1, calculated from the date of the premium billing notice. USDA had deferred to January 31, 2020, the accrual of interest on 2019 crop year insurance premiums for most policies with a premium billing date of August 15, 2019, to help the large number of farmers and ranchers affected by extreme weather and other challenges in 2019. RMA Administrator Martin Barbre says, “We urge producers to make their premium payment on time to ensure they don’t get charged interest back to their premium billing notice date.” Producers are encouraged to contact their crop insurance agents for more information or assistance. ************************************************************************************* USDA Seeks Input on New Ethanol Sales Infrastructure Incentive Program The Department of Agriculture announced Thursday it is seeking public input to help with the creation of the Higher Blends Infrastructure Incentive Program. The new program, according to USDA, will expand the availability of domestic ethanol and biodiesel by incentivizing the expansion of sales of renewable fuels. Agriculture Secretary Sonny Perdue says, "USDA remains committed to fulfilling a key promise to American farmers to enhance the promotion of biofuels." The request for information solicits ideas on options for fuel ethanol and biodiesel infrastructure, innovation, products, technology, and data derived from all program processes, or science, that drives economic growth, promotes health, and increases public benefit. Growth Energy CEO Emily Skor welcomed the request, saying, “Smart infrastructure investments will support rural jobs and allow more drivers across the nation to take advantage of the administration’s move to unleash sales of E15 year-round.” Working with Prime the Pump, Growth Energy has doubled the number of E15 stations five years in a row to include more than 2,000 stations across 30 states. ************************************************************************************ Mexico Strikes Down Nationwide E10 Mexico's Supreme Court this week ruled against a federal policy that would allow for higher ethanol blends nationwide. Mexico's Energy Commission sought a rule that would allow up to ten percent ethanol in gasoline nationwide, excluding the country's three biggest cities. The pre-existing fuel rule allows a maximum 5.8 percent ethanol content, according to Reuters. The court called for more science-based evaluation of higher-ethanol fuels. Kenneth Smith, a former Mexican trade negotiator, told Reuters Mexico should try again to craft a nationwide ten percent ethanol rule, calling it a “win-win” for Mexico. In a statement, the Mexican Association for Sustainable Mobility, an ethanol backing group, says, “Ethanol is part of the solution to reduce dependence on fossil fuels, use renewable energy, lower gasoline prices, create domestic jobs, boost the agricultural economy and improve the environment, it said.
| Rural Advocate News | Friday January 17, 2020 |
Washington Insider: China's Growing Economic Influence The complex phase-one trade deal with China was signed this week and the urban press, among others, is hard pressed to evaluate what it may mean. For example, while everybody thinks this "trade truce" is much better than the alternative, there also has been a rush to point out what it may not accomplish. For example, the Times emphasized the deal is a "truce" not a "peace treaty" and argued that while administration officials are bullish, "many economists are not." In addition, the general reaction to the agreement includes the deepening realization that China has, indeed, become an economically strong world competitor. In that regard, the Times reported extensively on one of China's major programs, its big-money push to build ports, rail lines and telecommunications networks -- and increase Beijing's political sway in the process. While the program seemed to be running out of gas just a year ago, it now "has come roaring back." In response, the Times notes Western officials and companies are renewing their warnings that China's gains in business and political clout could come at their expense. Chinese companies signed Belt and Road contracts worth nearly $128 billion in the first 11 months of last year, a 41% increase over the same period in 2018, the Times said. The contracts are mostly for construction and equipment by big Chinese companies using Chinese skilled labor and loans from Chinese banks, although the projects often create jobs for local laborers as well. The return of Belt and Road is likely to raise additional tensions with the United States, which worries China is building a globe-spanning bloc of nations that will mostly buy Chinese goods and tilt toward China's authoritarian political model. The rush of new Belt and Road contracts follows a public pullback by Chinese officials in 2018 after several projects were criticized by local officials and others as bloated and costly. China argues that, since then, it has fine-tuned practices to trim waste. Officials in the United States and Western Europe have long criticized Belt and Road as predatory and recently some officials in developing countries began to agree. Vice Premier Liu He of China publicly raised concerns in early 2018 about heavy lending by Chinese banks, not just for the Belt and Road Initiative. In the months that followed, Chinese financial regulators clamped down hard on domestic and overseas lending alike. New Belt and Road contracts plummeted, Chinese data showed. China's financial regulators told the country's banks to look twice at further lending to poor countries. But the credit crunch produced a much broader slowing in the Chinese economy than expected, so financial regulators reversed course. Contracts started to be signed in earnest again in the final weeks of 2018, and momentum built through last year. More recently, two western groups have raised questions about the resurgence of the Belt and Road Initiative. A report released Thursday by the European Chamber of Commerce in China concluded that Chinese-built telecommunications networks and ports are set up in ways that make it hard for European companies to compete. A survey by the chamber of its members also found they had been almost completely excluded from bidding on Belt and Road Initiative contracts, which went mostly to Chinese state-owned enterprises. The Institute of International Finance, a research group in Washington backed mainly by big Western banks, issued a different warning on Monday as part of a broader report on global debt. The institute's report said many poor countries in the Belt and Road Initiative now find themselves with sharply increased debt burdens. Many of these countries could barely qualify to borrow money even before they took on the new debt, the report said. The institute's report also said 85% of Belt and Road projects involved high emissions of greenhouse gases linked to climate change. These projects have included at least 63 coal-fired power plants, as well as loans that tend to carry considerably higher interest rates than those from lending institutions like the World Bank. The construction industry group and also the European chamber said the costs of Belt and Road Initiative projects are often greatly underestimated. They focus both on national telecom networks, new ports and other infrastructure that now mean a competitive disadvantage for both U.S. and European investors in several growing areas. China has contended that economic growth has long suffered in many emerging markets from high transportation costs, and that the construction of new ports can reduce these costs. So, we will see. Clearly, the hoped-for phase two of the China deal will be focused on a number of the remaining areas of anti-competitive behavior and will rely less on direct trade interventions like tariffs. The next steps will be crucial to ag producers and should be watched closely as they begin to take shape, Washington Insider believes.
| Rural Advocate News | Friday January 17, 2020 |
USDA Requests Info on Infrastructure Needed For Higher Renewable Fuels Blends USDA has published a request for information (RFI) for the Higher Blends Infrastructure Incentive Program (HBIIP). The RFI seeks to gain input "to expand domestic ethanol and biodiesel availability." USDA wants information "opportunities to consider infrastructure projects to facilitate increased sales of higher biofuel blends (E15/B20 or higher.)" This effort seeks to build on the Biofuels Infrastructure Partnership (BIP) program USDA operated from 2016 to 2019 through state and private partners to expand the availability of E15 and E85 infrastructure to make available higher ethanol blends at retail gas stations around the country. The request from USDA aims at informing where there may be "notable gaps, vulnerabilities, and areas to promote and protect in the HBIIP that may benefit from Federal government attention." Comments are due on or before Jan. 30.
| Rural Advocate News | Friday January 17, 2020 |
USDA'S Perdue Insists Final MFP 2 Payment Coming While there has been some uncertainty on whether the administration would make the final installment of the 2019 Market Facilitation Program (MFP 2) payment to farmers, USDA Secretary Sonny Perdue Wednesday appeared to put that issue to rest. In separate interviews with Ag Day and Bloomberg, Perdue sought to assure farmers he expects the payments will be made. Asked by Ag Day if the third MFP 2 installment would come, Perdue said, "I absolutely do expect that and I do not know, I do not know where the fake news came from over the anxiety of that maybe not being there. But it did not come from us. There has been questions from the Hill and from other industries there. But my expectation is that the president will direct us to fulfill that third tranche of the commitment of the 2019 MFP payments." In his remarks to Bloomberg, Perdue said, "I'm counting on it, but we've got to get that allocated through the Office of Management and Budget. But I see no reason why we can't get that done." Through Jan. 6, USDA has paid out $10.769 billion under MFP 2, with Iowa, Illinois, Texas, Minnesota and Kansas being the top five states receiving the payments.
| Rural Advocate News | Friday January 17, 2020 |
Friday Watch List Markets Friday starts with a report on U.S. housing starts at 7:30 a.m. CST, followed by U.S. industrial production at 8:15 a.m. and an index of U.S. consumer sentiment at 9:00 a.m. South American weather forecasts remain of interest as do any clues of export activity after Wednesday's phase one agreement. Weather Snow and freezing rain are in store for the central and south-central Plains and western Midwest Friday, causing safety and transportation hazards and stressing livestock. Southern Plains areas will have moderate to locally heavy rain, favoring wheat moisture. Bitter cold will be confined to the Canadian Prairies.
| Rural Advocate News | Thursday January 16, 2020 |
Trump Signs Phase One Agreement with China President Donald Trump signed a trade agreement with China Wednesday. The phase one deal, according to the Trump administration, is worth an extra $40-50 billion annually over the next two years in U.S. agricultural sales to China. However, Senate Minority Leader Chuck Schumer earlier this week called the deal weak, suggesting Trump reached a watered-down agreement to claim a “win” during his reelection campaign. Further information suggests the figure may be $32 billion in increased ag purchases, not $40-50 billion. Senator Chuck Grassley, a Republican from Iowa, attended the ceremony. Grassley welcomes the agreement but says, “Not only must China follow through with its commitments in this phase one deal, but also work toward a comprehensive agreement.” President Trump says the agreement removes trade barriers for U.S. agricultural products, particularly for beef. Meanwhile, Agriculture Secretary Sonny Perdue says the agreement will benefit many different U.S. farm commodities. The agreement should be implemented within 30 days, according to the Trump Administration. ************************************************************************************* USTR offers China Agreement Details Documents released by the U.S. Trade Representative’s Office offer details into the agriculture provisions in the U.S.-China phase one trade agreement. USTR Robert Lighthizer says China will purchase and import, on average, at least $40 billion of U.S. food, agricultural and seafood products annually for a total of at least $80 billion over the next two years. Products will cover the full range of U.S. agriculture. U.S. exports of pork products were $700 million in 2017 and are expected to reach $1.7 billion annually in the next two to three years. China will expand the scope of beef products allowed to be imported, eliminate age restrictions on cattle slaughtered for export to China, and recognize the U.S. beef and beef products' traceability system. The Department of Agriculture estimates U.S. beef and beef product exports to China could reach $1 billion annually. Further, China has agreed to implement a transparent, predictable, efficient, science- and risk-based regulatory process for the evaluation and authorization of products of agricultural biotechnology. ************************************************************************************* Peterson, Costa, Cautiously Optimistic about Phase One China Deal House Agriculture Committee Chairman Collin Peterson of Minnesota and Livestock and Foreign Agriculture Subcommittee Chairman Jim Costa of California say they are optimistic but cautious, regarding the phase one trade agreement with China. Peterson notes the agreement includes potential increased market access for U.S. farmers, adding, “The question now is whether China will play by the rules it has agreed to here.” Peterson says he is concerned that long-term, certain crops may not regain the foothold they lost in the trade war. Meanwhile, Costa says, “The key is getting the Chinese to stick to their commitments and prove that they will honor international agreements.” Costa adds it’s not immediately clear that the new purchases, at least $40 billion worth annually according the Trump Administration, “will make up for what we’ve lost along the way.” Both Peterson and Costa say they are pleased to see progress on negotiations with China. However, most tariffs on China will remain in place, while Trump seeks a phase two agreement. ************************************************************************************* Farm Groups Welcome Phase One Agreement Agriculture groups welcome the new trade agreement with China. The U.S. Grains Council says the agreement should reduce continued market uncertainty and incentivize China to purchase significant amounts of the full range of U.S. agricultural products. Growth Energy CEO Emily Skor says the signing is ”another positive step towards restoring market confidence for U.S. biofuel producers.” In 2016, China was the third-largest export market for U.S. biofuels, but exports were nearly eliminated due to retaliatory tariffs and trade negotiations. The National Cattlemen's Beef Association calls the agreement a "game-changer." NCBA President Jennifer Houston says the removal of trade barriers included in the agreement “gives Chinese consumers access to the U.S. beef they desire.” The National Pork Producers Council applauded the agreement, as well, saying pork producers are "ideally positioned to address this unprecedented sales opportunity for pork in China." However, NPPC urged the removal of the 60 percent punitive tariffs on U.S. pork to "fully capture the benefits" of the agreement. ************************************************************************************* USMCA Senate Vote Thursday The Senate is hopeful to vote on the U.S.-Mexico-Canada Agreement Thursday (this) morning. After quickly advancing the agreement through required committee approvals, the Senate will consider the agreement ahead of the impeachment trial next week. However, the Senate is not in session Friday, leaving little time to debate and pass the implementing legislation. Thought to be delayed until after the impeachment trial, the Senate moved up committee hearings to include USMCA passage during a busy week in Washington. The same day President Donald Trump signed the China agreement, the House of Representatives sent articles of impeachment to the Senate. Now, the Senate must make the impeachment trial a priority, which is expected to begin Tuesday. Action by the Senate would move USMCA to President Trump's desk for his signature. The signing of the agreement would signal Canada to approve the agreement, whose government is waiting for U.S. approval. Mexico already approved the agreement last year. ************************************************************************************* FSA Encourages Farmers to Enroll in ARC, PLC, Now USDA’s Farm Service Agency encourages producers to enroll now in the Agriculture Risk Loss (ARC) and Price Loss Coverage (PLC) programs. March 15, 2020 is the enrollment deadline for the 2019 crop year. Although more than 200,000 producers have enrolled to date, FSA anticipates 1.5 million producers will enroll for ARC and PLC. By enrolling soon, producers can beat the rush as the deadline nears. FSA Administrator Richard Fordyce says, “please do not wait to start the enrollment process,” adding producers “need to begin the program election and enrollment process now.” ARC and PLC provide financial protections to farmers from substantial drops in crop prices or revenues and are vital economic safety nets for most American farms. Until March 15, producers who have not yet enrolled in ARC or PLC for 2019 can enroll for both 2019 and 2020 during the same visit to an FSA county office unless yield updates are requested. Additionally, farm owners have a one-time opportunity to update PLC payment yields that take effect beginning with crop year 2020.
| Rural Advocate News | Thursday January 16, 2020 |
Washington Insider: EU Trade Commissioner Visits US Most of the press is focused on the first phase of the China trade deal this week but there is another effort underway as Europe’s new trade commissioner has come to Washington. His mission is “to prevent the Trump administration from ruining the European economy,” the New York Times said. The Times is not optimistic. It thinks that trans-Atlantic relations are so low that Commissioner Phil Hogan, a blunt-talking, physically imposing Irishman, “will probably do well if he can simply prevent things from going any further downhill.” The Times reviews its list: the U.S. is threatening tariffs that would double the price of imported French wine. The EU accuses the administration of paralyzing the system for resolving trade disputes and likely is “ushering in an era of conflict and disorder.” Punishing tariffs on European steel and aluminum remain in place. And, the administration continues to threaten duties on European cars, a potentially heavy hit. Finally, the Times says Europeans are deeply alarmed by “what they regard as the president’s recklessness in the Middle East.” “The current state of EU-U.S. relations isn’t good, and I don’t think it’s likely to get better anytime soon,” said Peter Chase, senior fellow at the German Marshall Fund of the United States in Brussels. Still, Commissioner Hogan brings a different set of skills than Cecilia Malmstrom, whom he succeeded at the beginning of December. Some in Brussels think his rawer style will make him a better match for the current occupant of the White House. “He is more direct,” said Luisa Santos, the director for international relations at BusinessEurope, an industry group. Gender may also play a role, Santos said. There is a widespread perception in Washington and Brussels that Trump officials were not comfortable with Ms. Malmstrom, an assertive Swede. But it’s unclear whether Hogan will have any more success than Malmstrom at repairing the largest trade partnership in the world, worth $1 trillion a year. His agenda includes meetings with Robert Lighthizer, the United States Trade Representative; Steven Mnuchin, the Treasury secretary; and Wilbur Ross, the Secretary of Commerce. To varying degrees, all support the president’s hard line on trade relations, the Times said. On Tuesday, there was a sign that the United States and Europe were still capable of cooperating. Hogan, Lighthizer and Kajiyama Hiroshi, the Japanese minister of economy, trade and industry, said in a joint statement that they would work together to tighten international rules on government subsidies and forced transfer of technology. The statement was clearly aimed at China, which is often accused of propping up its companies to give them an unfair advantage over foreign competitors and of forcing foreign companies to share sensitive technology in return for permission to operate in China. The three countries also agreed to work together to reform the WTO, a key objective of the Europeans. A 6-foot-5 former farmer from Kilkenny in southern Ireland, Hogan spent much of his political career in the trenches of Irish domestic politics, helping to build the centrist Fine Gael party into Ireland’s strongest bloc. He was Fine Gael’s director of organization in the early 2000s and later head of the party’s national election campaign. A former agriculture commissioner, Hogan was often involved in trade talks and gained a reputation for being canny and well prepared. Farm products are typically the most politically sensitive component of trade deals. A plan to reach a more comprehensive transatlantic trade deal early on in Trump’s tenure fell apart over disagreements about how to address agriculture. But little remains of the optimism that followed a meeting in July 2018 between President Donald Trump and Jean-Claude Juncker, then the president of the European Commission. The two men said they would work to reduce tariffs to zero and eliminate regulations that hindered trans-Atlantic trade. Still, progress has been modest at best. In July, they agreed to recognize each other’s inspections of factories that produce pharmaceuticals. But in most other ways, the relationship has only soured. The Europeans accuse the United States of crippling the WTO by blocking appointments of new members to a crucial panel that hears appeals in trade disputes. Without a system to enforce trade rules, Hogan told members of the European Parliament last year, “Well, then, there isn’t any point in having agreements.” “When sides take unilateral actions that harm the other side, that are inconsistent with international norms, the other side has a right to be angry,” said Clete Willems, a partner at the law firm Akin Gump who was an economic adviser in the White House until last year. “That’s where we are with the EU now.” Hogan is expected to try to convince his American counterparts that Europe and the United States should work together to rein in China, in part by fixing the WTO. He also plans meetings on Capitol Hill, where his Irish-ness is likely to play well. So, we will see. Clearly, avoiding negative trade sanctions is no small task, especially at this point in time. Thus, Hogan’s work in the U.S. is important and should be watched closely by U.S. producers throughout the week, Washington Insider believes.
| Rural Advocate News | Thursday January 16, 2020 |
DOE to Provide Funding For Research On Bioenergy Crops Up to $75 million over five years will be provided for research on development of sustainable bioenergy crops that can withstand environmental stress and changing environmental conditions, according to an announcement from the Department of Energy. The funding will be directed at universities, industry and nonprofit research institutions as the lead researchers and they may collaborate with DOE national labs and other federal agencies. The funding will be awarded on a competitive basis in the form of five-year grants ranging from $1 million to $3 million per year starting in Fiscal Year (FY) 2020. Planned funding is $75 million over five years, with outyear funding dependent on appropriations.
| Rural Advocate News | Thursday January 16, 2020 |
US-China Trade Deal Signed Addressing Several Key Issues President Donald Trump and Chinese Vice Premier Liu He signed the Phase One trade agreement at the White House Wednesday, flanked by more than 200 in attendance that represented several sectors of the U.S. economy that should see benefits from the trade deal. The purchase commitments of U.S. ag products in the agreement are for a two-year total of $80 billion. That comes from purchases of $12.5 billion beyond a $24 billion base period for $36.5 billion in 2020 and $19.5 billion beyond the $24 billion base period for $43.5 billion in 2021. The package also addresses issues in China such as their operation of their tariff-rate quotas (TRQs) for wheat, corn and rice. The U.S. successfully challenged China’s operation of the TRQs at the WTO as the country has not filled those for the commodities in question. The TRQs were part of China’s commitments when the joined the WTO. The agreement also calls on China to set maximum limits on residues for three growth hormones used in beef production and removes the age limit on animals that U.S. beef can come from to ship to China. The agreement also has China committing to a specific timeline for approving new GMO products and has other biotechnology-related provisions aimed at preventing future trade issues.
| Rural Advocate News | Thursday January 16, 2020 |
Thursday Watch List Markets Reports of weekly export sales, weekly U.S. jobless claims and monthly U.S. retail sales will be released at 7:30 a.m. CST Thursday, followed by weekly natural gas inventories at 9:30 a.m. South American weather remains of interest as well as any further information regarding the new phase one trade agreement with China. Weather Very cold and dry conditions will cover the entire central U.S. Thursday. The severe cold will be stressful to livestock and transportation. Precipitation will be noted in the southern tier with rain; snow in the Northeast; and moderate to heavy snow in the Far West and Northwest. The western U.S. storm system will bring snow, ice and rain to central U.S. areas during the end of the week.
| Rural Advocate News | Wednesday January 15, 2020 |
McConnell: Senate to Process USMCA This Week Senate Majority Leader Mitch McConnell suggests the Senate will vote on the U.S.-Mexico-Canada Agreement this week. Bloomberg News expects a vote Thursday, as the Senate committees required to sign off on the implementing legislation are doing so quickly. However, a final vote has not been confirmed. The Senate Environment and Public Works Committee approved the agreement on a vote of 16-4 Tuesday morning. The Senate Budget Committee also approved the trade agreement Tuesday. Up next, the bill must be approved by the Commerce, Science and Transportation Committee, along with the Health, Education, Labor, and Pensions Committee today (Wednesday). The Senate Foreign Relations Committee changed its hearing from Thursday to today (Wednesday), and the Senate Appropriations Committee is expected to do the same, sending the agreement to the full Senate for approval. The House of Representatives is expected to send the articles of impeachment to the Senate this week, but the trials won’t likely start until next week, offering a small window of opportunity for the Senate to pass the agreement. ************************************************************************************* China Imports of U.S. Soy, Pork, Rebound China’s purchases of U.S. pork and soybeans rebounded in November and December, ahead of today’s (Wednesday’s) signing of the phase one trade agreement between the two nations. Reuters reports that Chinese agricultural imports from the United States were at 14.1 billion yuan, or $2 billion, in December. A Chinese customs spokesperson says the increase in imports of soybeans and pork comes as "positive U.S.-China trade sentiment has boosted companies' confidence in December." African swine fever has severely reduced China's hog herd, the world's largest producer and consumer of pork. China has since increased exports of U.S. pork to record levels. Pork exports to China and Hong Kong were up 49 percent in value at $1.18 billion from January to November 2019. Consumer prices for pork in China nearly doubled since the initial outbreak of African swine fever, and efforts to rebuild the hog herd in China are slow going. China has also released frozen pork from state-owned reserves to help ease the situation for consumers. ************************************************************************************* Trade Group Seeks Accountability and Transparency A trade lobby group seeks accountability and transparency from the phase one agreement between the U.S. and China. Farmers for Free Trade seeks further details regarding both the China agreement, and the U.S.-Mexico-Canada Agreement. The China agreement includes $40 billion of increased purchases of U.S. agriculture products, according to the Trump administration. Farmers for Free Trade Co-Executive Director Brian Kuehl says, “There is a healthy skepticism about whether American farmers will actually see these purchases, adding “that skepticism is only compounded when we’re told we won’t see the full text of the deal.” Specifically, the organization is asking whether the $40 billion in ag purchases commitment is contingent on any actions by the U.S. and for details on how China will meet the commitment if it’s been made. Meanwhile, Chinese Vice Premier Liu (Lou) He was reported to be in last-minute talks with the U.S. ahead of today’s (Wednesday’s) signing ceremony. A potential phase two agreement is expected to tackle more sensitive issues between the U.S. and China. ************************************************************************************* GMA Rebrands as Consumer Brands Association The Grocery Manufacturers Association is now the Consumer Brands Association, as part of a rebranding effort. Geoff Freeman, president and CEO of the association, says the Consumer Brands Association is “an entirely new organization with a focused, compelling agenda.” The association represents the grocery product industry. Research by the organization suggests the association should focus on concerns regarding transportation costs, growing investment and prioritization around sustainability. Board Chairman and CEO of General Mills, Jeff Harmening, says the association "will be a vital reflection of our united interests and alignment with today's consumer." From household and personal care to food and beverage products, the consumer-packaged goods sector contributes $2 trillion to U.S. GDP and supports more than 20 million American jobs. As the Grocery Manufacturers Association, the organization saw a handful of companies discontinue membership in 2017 over a GMO labeling disagreement. Several companies that left the organization went on to form the Sustainable Food Policy Alliance. ************************************************************************************* USDA Reminds Historically Underserved Producers of Advance Payment Option The Department of Agriculture reminds historically underserved producers, who are participating in the Environmental Quality Incentives Program (EQIP), of the advance payment option. The advanced payment option allows them to get conservation practice payments in advance of practice implementation. EQIP is administered by the Natural Resources Conservation Service. The program provides financial and technical assistance to address natural resource concerns and to deliver environmental benefits. In fiscal 2019, NRCS invested $1.3 billion through EQIP to implement conservation practices on more than 13 million acres. A historically underserved producer includes beginning farmers, socially disadvantaged farmers, veteran farmers and limited resource farmers. Under the advance payment option, producers may request payments when they have final designs and job sheets and are ready to begin their EQIP practices. Advance payments provide at least 50 percent of the payment rate for each practice. The funds must be spent within 90 days of receipt and practices must be completed as agreed to in an EQIP plan of operations. ************************************************************************************* Illinois Leads Nation in Soybean Production Again Illinois continues to top the annual crop production report estimate for soybean production, according to 2019 Department of Agriculture estimates. Despite a tough growing season for most of the Midwest, Illinois farmers consistently produced strong soybean yields. Illinois soybean farmers raised 532.4 million bushels of soybeans in 2019 on 9.86 million harvested acres with an average yield of 54 bushels per acre. Illinois Soybean Association chairman Doug Schroeder says 2019 will be remembered as the most challenging growing season on record, but adds “I think this report reflects the Illinois soybean industry’s resiliency and ability to produce a consistent, high quality product year after year.” Iowa ranked second in production with 501.6 million bushels raised on 9.12 million acres. Nationwide, soybean production in 2019 totaled 3.56 billion bushels, down 20 percent from 2018. The average yield per acre was estimated at 47.4 bushels, down 3.2 bushels from 2018. Harvested area was down 14 percent from 2018 to 75.0 million acres.
| Rural Advocate News | Wednesday January 15, 2020 |
Washington Insider: China No Longer Currency Manipulator The New York Times reported this week that the Trump administration “formally removed China’s designation as a currency manipulator on Monday, offering a major concession to the Chinese government as senior officials arrived in Washington to sign a trade agreement.” The Treasury Department released its long-delayed currency report Monday afternoon, providing its first public analysis of China’s currency practices since it was designated a manipulator in August. The report noted that China had made important commitments regarding the renminbi as part of the new trade agreement and that its value had appreciated since September. President Donald Trump had accused of weakening its currency, the renminbi, to make its goods cheaper to sell overseas. “China has made enforceable commitments to refrain from competitive devaluation, while promoting transparency and accountability,” Treasury Secretary Steven Mnuchin said in a statement. Observers note that President Trump has long been critical of China’s currency practices, arguing that Beijing weakens the renminbi to make Chinese exports cheaper in the United States. He accused China of doing just that in August, when Beijing allowed its currency to weaken, saying it was an attempt to blunt the effect of tariffs he had imposed on Chinese imports. It was a rare point of bipartisan agreement that China deserved to be labeled a currency manipulator, bringing together Democrats like Senator Chuck Schumer, D-N.Y., the minority leader, and Republicans like Senator Rick Scott of Florida. The Times noted that the decision to remove the label was not unanimously supported. “Just because we’re negotiating a trade deal doesn’t mean we should ignore Communist China’s bad acts,” Scott said on Twitter. “They are a currency manipulator. Period.” Sen. Schumer, who has criticized China’s currency practices for years, accused Trump of caving to China in an attempt to score a political win. The currency report released on Monday said China had agreed to “publish relevant information related to exchange rates and external balances.” China will remain on the Treasury Department’s list of countries whose currency practices warrant close attention. The United States had last labeled China a currency manipulator in 1994. The designation, while seen as a type of public shaming, is largely symbolic and is supposed to prompt discussions between the United States, the IMF and the Chinese government on how China can make its currency more fairly valued. The International Monetary Fund said in a report last year that China’s currency was fairly valued. While most economists agreed that China had been distorting the value of its currency more than a decade ago, more recently it has been allowing market forces to play a role in letting the renminbi fluctuate within a set range. For much of last year, Chinese officials had actually been propping up the renminbi amid a weakening economy to prevent its value from falling too quickly. “China’s foreign exchange reserves, a key indicator of the degree of foreign exchange market intervention, has been quite stable over the last year,” said Eswar Prasad, former head of the International Monetary Fund’s China division. “While China still has a sizable trade surplus with the U.S., its overall current position is near balance, further undercutting the characterization of China as a currency manipulator.” Treasury’s currency report noted that the renminbi was trading as high as 7.18 per dollar in early September and was recently trading at 6.93 per dollar. Trump had promised as a presidential candidate to slap the manipulator label on China. Yet Mnuchin opted not to do so in the first five reports that his department issued. The department said China did not meet the department’s criteria for currency manipulation. As trade negotiations with China dragged on last summer, the President grew increasingly frustrated and seized upon China’s weakening currency as another source of leverage. Despite his own resistance, Mr. Mnuchin used his discretion as Treasury secretary to impose the label at the president’s urging. “They did it for political reasons,” Chad P. Bown, an international trade expert at the Peterson Institute for International Economics in Washington. “Clearly there was no legal basis or really an economic basis to do so.” Senior Chinese officials arrived in Washington on Monday to put the finishing touches on the trade agreement. In addition to the currency provision, the deal is expected to include a commitment by China to purchase more farm products and to open more of its markets, like financial services, to foreign firms and it is expected to agree to protect American intellectual property. In exchange, the Trump administration has reduced some tariffs on $360 billion worth of Chinese goods. Although the administration offered China an olive branch on its currency, it pressed ahead on Monday with new plans to scrutinize foreign investment that were devised with China in mind. The Treasury Department issued regulations to implement the Foreign Investment Risk Review Modernization Act of 2018, including exemptions for Australia, Canada and the United Kingdom from some of the more onerous requirements of the new law. So, we will see. Currency policies are fundamentally important and extremely complex to manage — trends producers should watch closely as they evolve, Washington Insider believes.
| Rural Advocate News | Wednesday January 15, 2020 |
USTR Assures Produce Growers On Imports From Mexico Southeast U.S. produce growers have gotten reassurances from U.S. Trade Representative Robert Lighthizer that the U.S. will be monitoring imports of fresh produce from Mexico as the implementation of the U.S.-Mexico-Canada Agreement (USMCA) takes place. The U.S. will increase scrutiny of Mexican produce pricing and hold field hearings after Congress approves the trade agreement's implementing legislation. Lighthizer said the U.S. will increase scrutiny of Mexican produce pricing and hold field hearings. Produce growers failed to get provisions in USMCA that would have made it easier to challenge imports of the products from Mexico.
| Rural Advocate News | Wednesday January 15, 2020 |
US-China Phase One Trade Deal Signing Today The signing ceremony for the U.S. and China to sign the phase-one trade deal will start at 10:30 a.m. (CT) at the White House Wednesday. In conjunction with the signing, the text of the agreement is to be made publicly available. However, there will not be certain components that are made public, including on the purchase commitment side. “The only non-public component of the agreement is a confidential annex with detailed purchase amounts, which has been previously described,” U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said in a joint emailed response to questions, according to Bloomberg. “There are no other oral or written agreements between the U.S. and China on these matters, and there is no agreement for future reduction in tariffs.”
| Rural Advocate News | Wednesday January 15, 2020 |
Wednesday Watch List Markets The U.S. and China are expected to sign a phase one trade agreement sometime Wednesday and traders will be watching closely for details. The U.S. Labor Department releases a report on U.S. producer prices at 7:30 a.m. CST, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m. At 1 p.m. CST, the Federal Reserve puts out its Beige Book, a monthly summary of how the economy is doing. Weather Snow, mixed precipitation, and very cold winds are in store for the Northern Plains and the northern and western Midwest Wednesday. These conditions will be stressful to livestock and will hinder transportation. We'll also see periods of rain in the eastern and southern Midwest through the Delta, keeping souls wet and threatening some local flooding.
| Rural Advocate News | Tuesday January 14, 2020 |
USMCA Likely on Hold for Impeachment Hearings Impeachment hearings are expected to now delay Senate consideration of the U.S.-Mexico-Canada Agreement. The House of Representatives will vote this week to send the articles of impeachment to the Senate. Senate leaders say the impeachment trial would last roughly two weeks, with members in session six days a week. That pushes any timeline for USMCA approval into February. Meanwhile, following approval of the implementing legislation in the Senate Finance Committee last week, other committees needing to approve the agreement are doing so quickly this week. The Environment and Public Works Committee, along with with the Senate Budget Committee, both scheduled hearings Tuesday morning. Meanwhile, the Commerce, Science and Transportation Committee will consider the agreement Wednesday morning, along with the Health, Education, Labor, and Pensions Committee. Finally, the Senate Foreign Relations Committee will consider the agreement Thursday morning. However, impeachment must take priority in the Senate, therefor holding up final approval of the agreement until after the impeachment process. ************************************************************************************* U.S.-China Agreement Concerns Remain President Donald Trump and Vice Premier Liu (Lou) He will sign the phase one trade agreement tomorrow (Wednesday) morning at the White House, with roughly 200 people invited to attend. However, some question China’s ability to increase expected purchases, and if the agreement will stick. The American Farm Bureau Federation says the agreement will open the market, but not exclusively to the United States. That means the U.S. will have to compete with other exporters for the expected $40-50 billion increase in annual purchases by China. Meanwhile, A U.S. Chamber of Commerce official told media members Monday the phase one agreement “stops the bleeding,” but doesn’t end the trade war. Reuters points out that the United States has left in place tariffs on $370 billion worth of Chinese imports. Further, negotiations for a phase two deal will probably touch on more difficult issues, including Chinese subsidies for state-owned firms and industrial policies perceived to be creating an uneven playing field. ************************************************************************************* GAO to Audit SRE’s Following Request The Government Accountability Office will review the Trump Administration’s biofuel small refinery exemptions, following a request from lawmakers. Representative Abby Finkenauer (Fink-en-now-er), a Democrat from Northeast Iowa, says, “Granting more than 80 small refinery exemption waivers isn’t just something this administration can sweep under the rug.” Finkenauer, along with a group of lawmakers from ethanol-producing states, sent a letter last August to the GAO, requesting a review of the small refinery exemptions granted by the Environmental Protection Agency. The letter sought review of EPA's approval process for the exemptions, the role the Department of Energy has in reviewing the exemption applications, and what is considered in the assessment of applications. The GOA responded late last week in a letter, stating, “GAO accepts your request as work that is within the scope of its authority.” Last year, the EPA announced it granted 31 new small refinery exemption waivers. Under the Trump administration, small refinery exemption waivers have more than quadrupled from the previous administration. ************************************************************************************* AEM Reports 2019 Full-year Tractor, Combine Sales Farmers bought more tractors last year compared to 2018, but combine sales remained flat. A new report for the Association of Equipment Manufacturers says for 2019, a total of 244,600 tractors were sold, which compares to 236,180 sold through December 2018, representing a four percent increase during the year. In 2019, two-wheel drive smaller tractors, rated under 40 horsepower, were up five percent, while 40 to under 100 horsepower tractor sales were even. Sales of two-wheel drive 100-plus horsepower tractors were up four percent, while four-wheel drive tractors sales were up six percent in 2019. Meanwhile, combine sales for the year totaled 4,807 compared to 4,839 in 2018. All sectors fell in Canada, with combine sales down 19.4 percent for the year. AEM senior vice president of Ag Services, Curt Blades, concludes, “While growth hit a bump toward the end of the year, ag tractor and combine sales overall for 2019 ended relatively flat.” ************************************************************************************ Trump to Attend AFBF Convention President Donald Trump will again join the American Farm Bureau Federation for its annual convention. The 101st AFBF Annual Convention and Trade Show runs January 17-22 in Austin, Texas. President Trump is scheduled to attend Sunday, January 19. This marks the third straight year Trump has attended the AFBF convention. AFBF President Zippy Duvall says in a statement, “We are grateful that he has made agricultural issues a priority." Duvall says AFBF welcomes Trump "at a time when there is much to talk about, from trade progress to important regulatory reforms." The Senate is close to finalizing the U.S.-Mexico-Canada Agreement, and the so-called phase one agreement will be signed this week. Other officials currently scheduled to attend include Agriculture Secretary Sonny Perdue, and Environmental Protection Agency Administrator Andrew Wheeler. Senate Agriculture Chairman Pat Roberts, a Republican from Kansas, and Senator Jerry Moran, also a Republican from Kansas, are on the schedule, as well. ************************************************************************************ Beef Quality Assurance Program Continues Growth The Beef Quality Assurance program continues to grow significantly, according to the National Cattlemen’s Beef Association. NCBA reports there are now more than 100,000 cattle producers certified through the BQA online learning system. The online option was introduced by NCBA, a contractor to the Beef Checkoff, in early 2017. Since the BQA program was initiated in the early 1990s, hundreds of thousands of producers and transporters have become BQA-certified through in-person and online training, with an estimated 85 percent of the U.S. fed beef supply now touched by BQA-certified operations. The program is a nationally coordinated and state implemented plan. The BQA program provides systematic information to U.S. beef producers and beef consumers of how commonsense husbandry techniques can be coupled with accepted scientific knowledge to raise cattle under optimum management and environmental conditions. Veterinarian Bob Smith, chair of the BQA Advisory Board, says the growth demonstrates that producers and transporters “continue to embrace this tool for optimizing quality in their operations.”
| Rural Advocate News | Tuesday January 14, 2020 |
Washington Insider: Trade Policy Objective Questioned Bloomberg reported recently that while current data are suggesting that President Donald Trump may be poised to deliver on one of his biggest economic promises: Reducing the annual U.S. trade deficit with China and the world, that accomplishment could come with plenty of caveats attached and even what some economists see as worrying signs for the U.S. economy. November trade data showed that the U.S. goods and services deficit decreased by 0.7%, or $3.9 billion, in the first 11 months of 2019 from the same period a year earlier. That puts the annual deficit on track to fall for the first time since the president took office, promising to rebalance America’s economic relationship with the world. The administration also claims that despite the continuing doubts of many mainstream economists, “clearly the Trump tariffs are working,” said White House adviser Peter Navarro. However, most of the tariffs now in place on some $360 billion in imports from China are due to remain despite the phase one deal. “We should see continued improvement in the China numbers as tariffs remain largely in place while purchases should increase significantly across our agricultural, energy, manufacturing, and services sectors,” Navarro said. The U.S. tariffs so far have clearly had an effect on trade with the world’s second-biggest economy but the trend has been down in November, declining for the sixth straight month and reaching the lowest since March 2013. The biggest contributor to the drop in the deficit from January through November was the continuing boom in shale oil, Bloomberg reported. In nominal terms, the U.S. petroleum-trade shortfall with the world fell to $13.1 billion in the first 11 months of 2019, more than $35 billion less than it was in the same period of 2018. When it comes to the rest of the U.S. economy – including a manufacturing sector the administration has promised to revive – the trade picture looks very different. The non-petroleum deficit grew almost $20 billion to $766.2 billion in the first 11 months of 2019, putting it on track to beat 2018’s full-year record deficit of $824.8 billion. The other major factor driving the narrowing of the U.S. trade deficit was a decrease in imports rather than an increase in exports. That is often a sign of weaker demand for the U.S. rather than an economy poised to record another burst of growth, Bloomberg notes. It also creates a statistical quirk that has long been the source of a bitter debate between advocates of tariffs like Navarro and other economists. Because of the way gross domestic product is calculated, a reduction in imports contributes to faster headline growth. Yet most economists argue that is an accounting anomaly rather than a reason to cheer, especially if it is a sign of a weakening demand rather than stronger domestic production. The slowdown in imports has been accompanied by one in exports. It also has been exacerbated by companies drawing down on inventories built up earlier this year to try to get ahead of tariffs, according to Eliza Winger, who covers the U.S. economy for Bloomberg Economics. The import contraction in the fourth quarter of last year appeared to be the largest seen since the 2007-2009 recession, said Greg Daco, chief U.S. economist for Oxford Economics. By his calculations, net exports would add 1.2 percentage points to GDP growth in the fourth quarter of 2019 – also the biggest such contribution seen since the crisis a decade ago. That it was likely to make up half the 2.4% growth Daco is forecasting for the quarter is not necessarily encouraging. Navarro insists that the tariffs have contributed to a re-shoring of manufacturing and broader investment in the U.S. economy. It’s not clear from the data that has in fact happened, however. Last year saw a slump in business investment, with many companies blaming uncertainty related to Trump’s trade policies for holding off on big capital investments. Other data have pointed to a slowdown in U.S. manufacturing last year. It’s also unclear how beneficial a small reduction in the trade deficit in 2019 would be in an election year, Bloomberg says. At more than $562 billion, the U.S. goods and services deficit in the first 11 months of the year is already more than $60 billion higher than it was in all of 2016, the year President Trump was elected. Over the course of the Trump administration’s term, the deficit is clearly up, so in that sense he has not succeeded, said Brad Setser, a senior fellow at the Council on Foreign Relations. “What he has shown is if you put big enough tariffs on, that can change both the bilateral balance of trade,” Setser said. “What he hasn’t shown is that his tariff-based strategy can generate a revival in U.S. manufacturing.” Clearly, the administration is continuing to aim for lower trade deficits – and there is considerable industry and academic skepticism of that objective. Now as the phase one deal is signed with China and attention shifts to next steps, producers should watch that debate closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Tuesday January 14, 2020 |
GAO To Study Small Refiner Waivers Under RFS The Government Accountability Office (GAO) will investigate the EPA's issuance of hardship exemptions to small refineries, which allow them to avoid complying with the (Renewable Fuel Standard). The probe was requested by a bipartisan group of Midwestern lawmakers who say the waivers hurt the revenues of farmers and biofuel producers. Meanwhile, the matter will be the subject of a meeting in Washington to close out the week. The National Capital Area Chapter of the U.S. Association for Energy Economics holds a discussion on "State of the Renewable Fuels Standard," focusing on "Renewable Volume Obligations, Renewable Identification Numbers, and the small refinery exemption."
| Rural Advocate News | Tuesday January 14, 2020 |
US-China Phase One Trade Deal Signing Still on For Wednesday A Chinese delegation, led by Vice Premier Liu He, arrived in China Monday in preparation for signing of the phase-one deal with the U.S. There have been more than 200 invited to the signing ceremony. Despite some conjecture to the contrary, Treasury Secretary Steve Mnuchin said the agreement was not changed as it was translated and still calls for China to buy $40 billion to $50 billion in U.S. ag goods annually and a total of $200 billion in U.S. goods over two years. The U.S. and China will undertake semiannual talks to push for economic reform and resolve disputes, similar to a format from previous administrations that Trump trade officials had once criticized. The effort (separate from trade talks) will be headed by and Liu, among other senior officials, according to a statement by Mnuchin and U.S. Trade Representative Robert Lighthizer. As for enforcement, Mnuchin also said that if China does not comply with terms of the deal, “the president retains the authority to put on tariffs, both existing tariffs and additional tariffs.” A special office will be set up in each country to monitor implementation. If conflicts are not resolved within 90 days, the U.S. could take unspecified “proportionate” action against China and vice versa..
| Rural Advocate News | Tuesday January 14, 2020 |
Tuesday Watch List Markets Tuesday is expected to be a quiet day with just one report on U.S. consumer prices due out at 7:30 a.m. CST. Traders are watching weather forecasts and for any news about the signing of a phase one trade agreement with China. January futures contracts in the soy complex are set to expire by noon CST. Weather Tuesday features a variety of winter weather-related transportation and safety issues in the primary crop areas. Cold conditions and snow are in store in the northern Midwest; fog in the central U.S.; and rain in the southeastern U.S. Meanwhile, moderate to heavy snow in the northwestern U.S. signals the onset of a new round of winter storm potential in the central U.S. during late week
| Rural Advocate News | Monday January 13, 2020 |
China Confirms January 15th Signing Day for “Phase One” Wednesday is an important day for the trade dispute that’s dragged on between China and the United States. The South China Morning Post confirms that the Chinese Vice Premier will be heading to Washington to participate in the signing ceremony for a partial trade agreement between the two nations. The deal will boost U.S. agricultural commodity shipments to China in exchange for the White House cutting back on some of the existing tariffs on Chinese goods. U.S. President Donald Trump has said China will buy as much as $50 billion worth of agricultural goods every year within the next two years. However, Beijing still hasn’t confirmed any of those numbers yet. A deputy ag minister quoted by a Chinese magazine last week says his country has no plans to change its grain import quota system. Politico says trade analysts point out that could make it extremely difficult for Beijing to meet U.S. demands. The other fact that makes many economists skeptical is the most U.S. agricultural products China has ever purchased was $26 billion back in 2012. President Trump recently said on Twitter that he’ll be heading to Beijing to begin talks on Phase Two of an agreement, but a spokesperson for China’s Ministry of Commerce didn’t provide any additional details on potential talks. ********************************************************************************************* Hopes for Jump in U.S. Farm Exports Dim Ahead of Signing Days ahead of the Phase One trade deal signing between the U.S. and China, hopes appear to have dimmed somewhat for a spike this year in U.S. farm shipments overseas. China recently made large buys of Brazilian soybeans and made a pair of unexpected policy moves, two things that Reuters says have put a damper on that optimism. China confirmed late last week that their Vice Premier will be in Washington to sign the Phase One partial trade deal with the U.S. Chinese forward purchases of Brazilian soybeans that totaled about 800,000 tons are causing doubts about whether Chinese buyers will have any need to tap into the vast soybean supplies available from the U.S. American traders who spoke anonymously with Reuters say China’s soybean needs have been covered through the first quarter of 2020. Adding to U.S. concerns, Beijing announced plans to suspend its implementation this year of a nationwide gasoline blend that contains 10 percent ethanol. The plan originally brought about the hope that U.S. exports of the biofuel to China would leap upward, as well as hopes of more corn shipments to the country to help it produce the biofuel domestically. ********************************************************************************************** Bad News for U.S. Beef/Chicken in Potential U.S.-U.K. Trade Deal The U.S. beef and poultry industries got some bad news through a recent article on BBC Dot Com. Chlorine-washed chicken and hormone-treated beef will be kept out of the United Kingdom under any potential trade deal with the U.S. That comes straight from the UK environmental secretary. Theresa Villiers (VILL-ee-ehrs) tells the BBC that the current European Union ban on the products will carry over into UK legislation after the United Kingdom leaves the EU. Villiers says, “There are legal barriers to the imports and those are going to stay in place. We will defend our national interests and our values, including our high standards of animal welfare.” The EU says using chlorine to wash the chickens and kill salmonella infections allows American farmers to be careless with the welfare of chickens. There is no known human health threat from using the solution to keep chickens free of infection. The EU also says feeding cows with growth-enhancing chemicals could potentially have negative health effects on the humans that consumer the beef products. The United States says these rules are nothing more than an attempt by Europe to protect its producers. America has stated publicly that both of these meat products will be central to any possible U.K.-U.S. deal after Brexit. ********************************************************************************************** ADM Appears Close to Leaving Biofuels Business for Good The Archer-Daniels-Midland Company is a giant agribusiness in the U.S. biofuels industry. However, that could be changing. Bloomberg says the company is in advanced stages of discussions on a deal that could mean a sale or joint venture for its ethanol dry mills. The agricultural company that dates back for 118 years is in discussions with multiple companies about its future. CEO Juan Luciano (Loo-see-AH-no) spoke last week about the discussions but wouldn’t name the fewer than five companies said to be involved. “We are advancing things along with several different parties, and I can say that we are advanced in those discussions,” he says. “We want to find either the right buyer or the right partner for these things.” He says while they haven’t made a final decision yet, “we are close.” ADM started producing ethanol back in 1978. This isn’t the first time they’ve taken steps to divest themselves of the dry mills. The company put the assets up for sale back in 2016, looked at the bids, and then decided to go ahead and keep the business. Luciano adds,” I wanted to make sure at the start of my tenure that we focused on nutrition and food, not fuels. I like ethanol and I believe there’s a lot of potential for the product. I just don’t feel it’s for us.” ********************************************************************************************** House Bill Introduced to Oversee USDA Checkoffs Nevada Democrat Dina (Deena) Titus introduced legislation titled “The Opportunities for Fairness in Farming Act” (OFF) into the House of Representatives. The Hagstrom Report says it’s designed to create financial controls and transparency for the USDA agricultural checkoff programs. Titus says, “The USDA’s checkoff programs have operated without sufficient oversight for far too long. This legislation brings much-needed accountability and transparency.” She feels family farmers shouldn’t be forced to pay into organizations that may sometimes lobby against their interests and threaten animal welfare. Congress authorized the commodity checkoff programs that allow farmers to bill themselves to pay into research and promotion programs for their particular commodities. However, groups backing the legislation say that organizations like the National Cattlemen’s Beef Association and other groups get access to these funds and don’t use them for their intended purposes. Marty Irlby, executive director of Animal Wellness Action, says, “USDA’s runaway checkoff programs must be held accountable. Family farmers have a right to know where their hard-earned dollars are being spent.” Earlier this year, four senators introduced companion legislation into the Senate for consideration. ********************************************************************************************** Corn and Soybean Harvest Results Higher Than Expected in January WASDE Report The January Word Ag Supply and Demand Estimate numbers show that the final 2019 corn yield came in at an average of 168 bushels per acre, nearly two full bushels above industry estimates. Total corn production was 13.7 billion bushels, up 31 million as higher yield more than offset a reduction in harvested acres, which totaled 81.5 million. The season-average corn price for producers is unchanged at $3.85 per bushel. Soybean production came in at 3.56 billion bushels, eight million larger on higher yield results. Yield estimates were 47.4 bushels per acre, with harvested acres at 75 million, down slightly from the previous report. The season-average price for beans is $9.00 a bushel, up 15 cents in part because of stronger soybean oil prices. The outlook for wheat is stable supplies, increased feed and residual use, as well as lower stocks. Feed and residual use rose 10 million bushels on lower second-quarter stocks, while seed use dropped by one million bushels on lower planted area forecast for the upcoming season. The season-average farm price for wheat is unchanged at $4.55 per bushel.
| Rural Advocate News | Monday January 13, 2020 |
Washington Insider: Reaction to Monthly Jobs Report The Labor Department’s monthly jobs report released last week suggests that the economy ended 2019 on a steady footing, the New York Times reported last week. The American labor market “still shows few signs that it is running out of breath.” Payroll gains in December capped a year of steady but slowing gains in employment, the government said, nudging the year’s total past 2.1 million jobs. That was fewer than 2018’s additions but more than enough to outpace population growth. “We had relatively strong and steady job growth over the year despite a number of headwinds including a trade war with China, weaker global activity and heightened policy uncertainty,” Gregory Daco, the chief United States economist at Oxford Economics, said. Employers added 145,000 workers in December. Looking ahead, Daco said the nation’s job machine was likely to crank down further. “I know it’s hard to get accustomed to,” he said, adding that he expects average monthly job growth to fall to 125,000 from 175,000 last year. “But that’s still enough to provide for a stable unemployment rate and provide for people coming back into the labor force.” One discouraging piece of the Labor Department’s monthly report was anemic wage growth. “It’s easier to get a job than a raise in this economy,” said Diane Swonk, chief economist at Grant Thornton. Consumer spending is a pillar of the economy, and it depends on income growth. Over the past 12 months, wages grew just 2.9%. That was substantially below the 3.3% average in 2018. “Something that the Fed has been humbled by is how little wage acceleration there’s been,” Swonk said, referring to the Federal Reserve. Even so, the report is unlikely to push policymakers at the central bank from their wait-and-see approach on further cuts to its benchmark interest rate. The labor squeeze has helped workers at the lowest end of the pay scale, giving their wages a push that exceeds the average increase. By contrast, wage growth for managers slowed in December. Limp wage growth is puzzling when the jobless rate has settled at 3.5%, a half-century low. Finding qualified workers was the top challenge cited by small-business owners in December, according to a monthly survey by the National Federation of Independent Business. What the tightening labor market has done, though, is draw in people who were not previously job hunting. Nearly three-quarters of new hires have come off the sidelines. The unemployment rates for groups that have tended to receive a smaller share of the expansion’s rewards, including high school dropouts, African-Americans and Latinos have also dipped since December 2018. The share of the population in the work force remains at the top of the post-recession range, even though it’s lower than before the financial crash of 2008. Many of the new entrants have been women, who now make up a majority of the nonfarm payroll for the first time in nearly a decade and dominate sectors that are expanding fastest, like health care. Job totals, of course, can mask wide differences based on location, skills and industry. And finding stable jobs that pay middle-income wages, offer benefits and a regular schedule can be difficult. Health care and hospitality, leisure, professional and business services flourished last year. Mining and manufacturing both struggled. Industrial goods and automobile manufacturers were the hardest hit, in part because of the trade war, said Andy Challenger, a vice president at Challenger, Gray & Christmas, an outplacement firm that tracks layoff announcements. Because the company’s survey tracks layoff announcements, Challenger said, it’s “a bit more forward looking” than the Labor Department’s figures. Plans can change, he noted, but the results “point to sentiments, if they think they’re going to cut.” Boeing, as well as the aerospace industry on the whole, is still reeling from the aftermath of two accidents. Boeing said on Friday that it would lay off 2,800 people in response to Boeing’s decision to suspend production of that jet. The manufacturing sector is particularly sensitive in this political context and “especially in an election year, the trajectory is going to be important,” said Rubeela Farooqi, chief United States economist for High Frequency Economics. There has been some progress on the trade front: The United States and China are expected to sign an agreement on the first phase of talks this week. But persistent uncertainty, which nudges businesses to be more cautious in hiring and investment, is far from clearing. Two-thirds of Chinese imports, worth $360 billion, are still subject to tariffs. And more tariffs on imports from Europe could be imposed this month. Julia Pollak, a labor economist for the employment site ZipRecruiter, said the combination of strong wage and job growth had been concentrated in nine states. In the top four, which are Utah, Nevada, Arizona and Colorado, the expansion has been driven by the technology industry. Those states have benefited in part because they have lower housing costs than Silicon Valley, Ms. Pollak said. So, we will see. Certainly the trends in job creation are fundamental to economic growth and these trends should be watched especially closely as they proceed, Washington Insider believes.
| Rural Advocate News | Monday January 13, 2020 |
Army Corps Officials Address Climate Questions in WRDA Review The House Transportation & Infrastructure Water Resources and Environment Subcommittee held a hearing on proposals for a Water Resources Development Act of 2020. The session featured testimony from RD James, assistant secretary of the Army for Civil Works and Lieutenant General Todd Semonite of the U.S. Army Corps of Engineers. While lawmakers focused most of their attention on specific projects important to their congressional districts, the issue of climate change also emerged frequently. That was likely generated by the Trump administration’s release of a proposal to reform the National Environmental Policy Act (NEPA), which many Democrats blasted as indicating that climate change was no longer going to be a factor in decision-making on projects. But the administration officials offered the same response to the repeated question of whether climate change was still going to be factored into the decisions made on projects undertaken via WRDA by the Corps. “We will continue use science” or some similar refrain was the answer from James, prompting most lawmakers to express some relief.
| Rural Advocate News | Monday January 13, 2020 |
Trump Says Phase One Deal With China To Be Signed January 15 Or Shortly Thereafter President Donald Trump has injected a little uncertainty into the situation relative to the phase-one agreement with China, telling a television station in Ohio that the deal will be signed on January 15 or perhaps shortly thereafter. "We are going to be signing on January 15th - I think it will be January 15th, but shortly thereafter, but I think January 15th - a big deal with China,” Trump told the ABC affiliate. There was no clarification of the comment issued by the White House and it comes after China confirmed that Vice Premier Liu He would be leading a delegation to Washington January 13-16 to sign the deal in Washington. As for phase two, Trump reiterated Thursday that he could wait until after the 2020 election to reach a phase-two accord with China. Trump said he thinks he could get a better deal if he waits until after his November reelection bid. The president said his administration will start “right away” negotiating the next piece of an agreement after striking the phase-one deal. But he said “it will take a little time” to finish an phase-two accord and suggested he could have more leverage after his reelection bid in November. “I think I might want to wait to finish ’til after the election, because by doing that, I think we can actually make a little bit better deal, maybe a lot better deal,” Trump told reporters at the White House.
| Rural Advocate News | Monday January 13, 2020 |
Monday Watch List Markets Monday's only official report, USDA's weekly grain inspections is due out at 10:00 a.m. CST. In addition to the latest weather reports, traders will be watching for news of a phase one trade agreement with China, expected to be signed this week. Weather Rain or showers and thundershowers during Monday from the southern Delta through the southeast U.S. Rain and high elevation snow through the Pacific Northwest southward into northern California Monday. Snow or snow showers across the northern Rockies. Light snow or snow showers may develop over the Northern Plains and the northwestern Midwest later in the day or during the evening. In Brazil, beneficial rains finally returned to Rio Grande Do Sul during the weekend. It will be drier and cooler today. Argentina will see will see a few light showers and somewhat warmer temperatures Monday.
| Rural Advocate News | Friday January 10, 2020 |
Senate Committee’s Plan USMCA Approvals The Senate committees tasked with markup and approval of the U.S.-Mexico-Canada Agreement are planning to do so quickly. The agreement must be approved through the committees before reaching the full Senate. Senate Finance Committee Chairman Chuck Grassley, who's panel has already approved the agreement, Thursday said, "it takes just a short period of time" for other committees to review the implementing legislation. However, the impeachment impasse could end as early as Friday, further casting a cloud on just when the full Senate will consider USMCA. House Speaker Nancy Pelosi says she’ll send the articles of impeachment “when I’m ready,” indicating that could be soon. Meanwhile, Senate Leader Mitch McConnel says the Senate will move on with other work until Pelosi sends the articles of impeachment. And, Grassley says the Senate is "not going to dilly-dally around while we're waiting to see what Speaker Pelosi wants to do on impeachment," adding, the Senate committees will act very quickly next week. ************************************************************************************* Trump Announced National Environmental Policy Act Changes President Donald Trump Thursday announced new proposed regulations to implement the National Environmental Policy Act. Trump says the announcement is part of his effort of “fixing this regulatory nightmare,” in which projects are delayed by “an outrageously slow and burdensome federal approval process.” Trump says the policy will cut the timeline for obtaining permits and force federal agencies to work more closely together to speed the process. Administered by the Environmental Protection Agency and enacted in 1970, NEPA assures all branches of government properly consider the environment before undertaking any major federal action that significantly affects the environment. The policy has not undergone substantive regulatory revision since 1986. The National Cattlemen’s Beef Association hailed the announcement. NCBA President Jennifer Houston called the action a “commonsense regulatory relief.” Ranchers must undergo NEPA reviews for many reasons, but common examples include renewal of a term grazing permit, construction of range improvements, or to become eligible for participation in USDA programs. ************************************************************************************* FCC Proposing $20.4 billion for Rural Broadband Federal Communications Commission Chairman Ajit Pai (Uh-JEET Pie) this week presented his colleagues with final rules to launch the new $20.4 billion Rural Digital Opportunity Fund. Chairman Pai says the fund would “target rural areas across the country where residents currently lack access to adequate broadband.” The rules will be voted on by the FCC at its Open Meeting on January 30. The proposal would establish a two-phased process to provide funding for the deployment of high-speed broadband in areas of the United States where there is currently not fixed broadband service that meets the Commission’s minimum speed standard of 25/3 Megabits per second. For Phase I, the FCC would target $16 billion to areas that are wholly unserved by such broadband. For Phase II, the FCC would use its new granular broadband mapping approach, called the Digital Opportunity Data Collection, to target unserved households in areas that are partially served by such broadband. ************************************************************************************* China Announced Ethanol Mandate Rollback China this week announced a suspension of its ethanol mandate, signally a further reduction of imports from the United States. The E10 target was suspended because China says, "any promotion of ethanol-gasoline must be based on the precondition that food security is guaranteed." The mandate was implemented in 2017 to draw down massive corn stocks in China. The U.S. exported about 20 percent of its ethanol supplies to China in 2016, worth about $300 million. However, shipments have since sharply declined. Renewable Fuels Association Geoff Cooper told Reuters, “This is definitely a step in the wrong direction, but it was not completely unexpected.” Beijing announced a 30 percent import tariff in 2017, and added additional tariffs through the U.S.-China trade war of another 40 percent. China was expected to sharply increase imports of U.S. ethanol under the recently announced phase one trade deal, but is now unlikely to require large ethanol supplies without the mandate. ************************************************************************************* USDA, FDA, EPA Launch Website for Biotechnology Regulation A joint-agency venture launched the Unified Website for Biotechnology Regulation Thursday. The Department of Agriculture, Food and Drug Administration and Environmental Protection Agency announced the website, which streamlines information about the three regulatory agencies charged with overseeing agriculture biotechnology products. The Unified Website for Biotechnology Regulation describes the federal review process for certain biotechnology products and allows users to submit questions to the three agencies. The goals of the website are to provide enhanced customer service to innovators and developers, while ensuring Americans continue to enjoy the safest and most affordable food supply in the world and can learn more about the safe use of biotechnology innovations. The website is part of President Donald Trump's Executive Order on Modernizing the Regulatory Framework for Agricultural Biotechnology Products. Agriculture Secretary Sonny Perdue says the website is “proof of President Trump’s commitment to provide the American people with sensible regulations in a clear and transparent manner.” Website: https://usbiotechnologyregulation.mrp.usda.gov/biotechnologygov/home/ ************************************************************************************ New Holland Partnering with National Hemp Association New Holland is partnering with the National Hemp Association to accelerate the return of hemp commodity crops on farms across North America, under the banner "Pushing Progress Together." Announced at the Pennsylvania Farm Show this week, through the partnership, the National Hemp Association will participate alongside New Holland at 16 national farm shows throughout North America. The association will deliver educational sessions and panel discussions, as well as exhibiting the variety of products produced from hemp. The alliance will also work toward solving the industry's biggest challenge: the absence of commercial-scale harvesting and equipment needed to meet demand. New Holland officials say the partnership will help the hemp industry to respond to concerns as it grows, and hear from its dealer network and customers “who are looking to New Holland to bring forward supply chain solutions." The alliance will call on other industry partners to join a "Hemp Pledge" and commit to purchasing hemp grown and processed in the U.S. by U.S. farmers.
| Rural Advocate News | Friday January 10, 2020 |
Washington Insider: Looking Ahead on Spending Concerns Everyone seems to expect political volatility to worsen next year, but many say they are working to tamp down potential fights to the extent possible. For example, the Senate’s top appropriators said this week that they are hoping the Fiscal Year (FY) 2021 budget that the President will send to Capitol Hill next month will closely follow the parameters of the recent two-year spending caps deal and “make it easier for them to start writing a new set of bills this spring.” Senate Appropriations Chairman Richard Shelby, R-Ala., said he will meet later this week with ranking member Patrick Leahy, D-Vt., to discuss plans for handling the budget request, set to be released on Feb. 10. Shelby said a White House blueprint that honors the caps agreement will make it easier to avoid delays and crises as next fall’s election nears. Shelby told reporters the deal that raised the discretionary spending caps still can guide appropriators’ work, even if the administration proposes increasing defense spending at the expense of domestic spending. “We have a two-year deal, we have the outlines to work on,” Shelby told reporters earlier this week. “In any president’s budget, and I’ve been here a few years, I’ve never known one to be adopted — Democrat or Republican. A lot of them are unrealistic, lots of them are wish lists and some of them have good stuff,” Shelby said. Leahy said President Trump’s FY 2020 budget that proposed deep cuts in domestic programs only added to appropriators’ difficulties in writing and moving bills out of committee last summer. He said that he and Shelby don’t want a replay of last year, where no bills moved until September, just weeks before the start of the fiscal year on Oct. 1. “Our bills were done separate from it and I don’t think anyone expects the president’s budget this year to be anything more than a suggestion,” Leahy said. Senator Roy Blunt, R-Mo., chairman of the Labor-HHS-Education Subcommittee, said appropriators still will have to set top-line spending figures for each of the 12 bills – called 302(b) numbers – even with the budget caps deal, so a fiscal 2021 budget from the White House that’s politically realistic could increase the odds the process goes more smoothly. “My advice would be to send a budget that’s more realistic to the final outcome than the budgets we’ve gotten in the last few years,” Blunt said. He added that lawmakers in both parties are likely to once again ignore the deep cuts Trump’s budgets have proposed. He said both parties want to keep domestic funds steady. “When I called the secretaries of Education and Labor and HHS this year, my first comment was ‘you didn’t get what you asked for,’” Blunt said. Shelby didn’t rule out a budget that seeks more money for Defense than agreed to in the budget caps deal. But he said the most likely vehicle for additional funds will be an “emergency” request to fund heightened military activities in the Middle East. He said he doesn’t know when such a request may come. “We’re always aware they could come but we haven’t seen anything yet,” Shelby said. Sen. Lisa Murkowski, R-Alaska, who leads the Interior-Environment Subcommittee, said she would like to see funding for a road into Denali National Park. She said the road is slipping a lot but has never been a part of the deferred maintenance list, and she’s hoping the administration has “gotten the word on that one.” Senate Military Construction-VA Subcommittee Chairman John Boozman, R-Ark., said he sees veterans’ programs getting a boost in the president’s request. “I think we’re going to see another significant increase,” Boozman said, pointing to needs for IT improvement and health care programs at the Veterans Affairs Department, and implementation of a law signed last year to expand a presumption of benefits to veterans who served in waters off the coast of Vietnam. “All those things are going to cost money,” he said. Senate Appropriations Defense Subcommittee member Susan Collins R-Maine, and Senate Armed Services Committee member Angus King. I-Maine, wrote to Defense Secretary Mark Esper pressing the administration to support a larger Navy fleet. “We write to express our strong support for a 355-ship Navy and to urge continued support from the Department for a robust shipbuilding budget,” they said. Senate Energy and Water Subcommittee ranking member Dianne Feinstein, D-Calif., is watching for funds to address nuclear cleanup. “We’ve got nuclear waste spread all over the country, in more than 80 different places and we need to get it confined in safe and secure underground placement, and so, that’s been a major priority for me,” she said. So, we will see. Certainly the appropriations bills are not the only hot potatoes expected in the coming months, but a “modest calming” of the normal tensions over the size of the government and spending proposals are typically strong points of contention and should be watched closely by producers as the spending proposals and talks proceed, Washington Insider believes.
| Rural Advocate News | Friday January 10, 2020 |
Senate Committees Mostly Set USMCA Consideration Plans At least five of the six Senate committees that are to vote on the U.S.-Mexico-Canada Agreement (USMCA) have set their plans in place for the action next week. The Budget Committee and Environment and Public Works Committee will vote Tuesday, with Wednesday votes scheduled in the Commerce Committee and Health, Education, Labor and Pension Committee with the Foreign Relations Committee to vote Thursday. The Senate Appropriations Committee had not yet set a date for its consideration of the update to NAFTA as of late-Wednesday. Despite the extra committee action, USMCA is expected to be approved handily by the chamber.
| Rural Advocate News | Friday January 10, 2020 |
China Confirms Trade Deal Signing In Washington Next Week China has finally confirmed that the Phase One trade deal between the U.S. and China will be signed next week in Washington, with Commerce Ministry spokesman Gao Feng saying Vice Premier Liu He would travel to Washington January 13-15 to sign the pact. Teams from the two sides remain in close communication on the signing, he noted. "The two teams have been engaging with each other closely about the text and the terms of that agreement," Gao said. Bloomberg reported that Liu will be joined by People’s Bank of China governor Yi Gang, Commerce Minister Zhong Shan, vice minister of finance Liao Min, deputy chief of the National Development and Reform Commission Ning Jizhe, deputy international trade representative Wang Shouwen, and others. China’s ambassador to the U.S., Cui Tiankai, will also attend. As for ag imports, Gao said that China will continue to improve the administration of its tariff rate quotas under its WTO commitments and will make full use of the quotas based on market conditions, a situation which Gao said is not inconsistent with increasing imports of ag products from the U.S. Gao made the comments in response to a question on whether China would have to lower its grain imports from other countries to meet purchase commitments under the deal.
| Rural Advocate News | Friday January 10, 2020 |
Friday Watch List Markets Early Friday morning features non-farm payrolls and the unemployment rate. There is a slew of ag-related information. First is export sales at 7:30 central. At 11 a.m. the USDA and WASDE January report is out including final production, December 1 stocks and winter wheat seeding. After the close, we'll see the CFTC Commitment of Traders report. We'll be watching South American weather and the U.S.-Iran conflict as well. Weather Heavy rain and thunderstorms with a flooding risk from the southeast Plains through the south and east Midwest and the Delta Friday and Saturday. Snow, ice and some mixed precipitation from the southwest and central Plains through portions of the west-central and north-central Midwest during this time. Increased stress to livestock in the feedlots of southwest Kansas and the Texas Panhandle, travel and transport concerns elsewhere in these locations. Rain, ice and snow also over the Pacific Northwest across to the northern Rockies. Little elsewhere in the U.S. areas. Southern Brazil corn and soybean areas continue hot today but may see scattered thunderstorms this afternoon and tonight. Central Argentina crop areas again saw thunderstorms during the night and are not very hot.
| Rural Advocate News | Thursday January 9, 2020 |
USMCA to face Additional Approvals in Senate The U.S.-Mexico-Canada Agreement timeline remains uncertain. However, lawmakers in the certain seem certain they will pass the agreement, at the latest, following impeachment hearings. The House is still holding the articles of impeachment, alleging the Senate won't agree to a fair trial. At issue is the Senate must make impeachment a priority. Depending on how long a further review of USMCA takes in the Senate, and how long House Speaker Nancy Pelosi holds the articles of impeachment, will change the trajectory of USMCA. The Senate Finance Committee approved the agreement this week. However, a Senate parliamentarian has determined that eight other Senate committees must offer approval of the agreement. However, U.S. law states the agreement will be discharged from those committees in 15 days, regardless of approval. If Nancy Pelosi sends articles of impeachment to the Senate between now and whenever the committees approve the agreement, perhaps next week, the USMCA implementing legislation would have to wait until the impeachment trial is over, likely at the end of this month. ************************************************************************************* China to Release Pork Reserves Ahead of the Chinese New Year, China will release 20,000 metric tons of frozen pork in state-held reserves. China has previously released more than 100,000 metric tons of pork from state reserves since last month, seeking to stabilize supplies following impacts of African swine fever. A Chinese Agriculture Ministry official told the South China Morning Post this week that the African swine fever situation “is still severe and complex,” adding the risk of outbreaks rise with the increase of live hogs in the nation. China’s sow herd declined roughly 40 percent, perhaps more since the initial outbreak of ASF in the nation. However, Chinese officials say the herd has increased two percent in December. Restocking the herd poses the risk of recontamination, if efforts to eliminate the presence of the disease in pork producing facilities failed. However, for U.S. producers, China's ASF troubles and the expected signing of a phase one trade agreement provide export opportunity. China is the largest producer and consumer of pork on the globe. ************************************************************************************* NMPF Encouraged by Recent Labeling-related Actions Heading into 2020, two major actions provide cause for optimism regarding a change in labeling enforcement at the Food and Drug Administration, according to the National Milk Producers Federation. First, the Senate confirmed Dr. Stephen Hahn to lead the FDA December 12. In an exchange with Senator Tammy Baldwin, a Wisconsin Democrat, during his confirmation hearing, Dr. Hahn stated his support for “clear, transparent, and understandable labeling.” More recently, the House and Senate included language in the report accompanying the final Fiscal Year 2020 government funding measure to urge FDA to complete its job and enforce dairy-product standards. Both the House and Senate versions of the Agriculture-FDA bill report included language reaffirming bipartisan congressional concern with mislabeled imitation dairy products, and directs FDA to enforce its own rules on labeling. NMPF says this week that the report reaffirms Congress’s concern regarding products “that include the names of dairy products that do not contain milk or ingredients derived from milk,” as stated in Senate language. ************************************************************************************* Toomey, Blumenthal, Announce Food Bank Bill The new Food Donation Improvement Act of 2019 seeks to help food banks collect and distribute more food to needy families. The legislation was announced by Republican Senator Pat Toomey of Pennsylvania and Democratic Senator Richard Blumenthal of Connecticut Wednesday. The Senators say new and innovative food assistance models repurpose items from donating entities and sell prepared dishes like microwavable dinners for a nominal cost. But federal law does not currently extend liability protections to food donors when food is either given directly to a person in need or when a recipient pays a deeply reduced cost. Specifically, the legislation would extend liability protections to food-donating entities and food banks for food sold at a reduced price. The bill also would extend liability protections to qualified donors who give food directly to needy individuals and families without going through a non-profit intermediary. Finally, the legislation requires the Department of Agriculture to issue regulations clarifying the quality and labeling standards donated food must meet. ************************************************************************************ Farmland Market Continued Plateau in 2019 The land market in 2019 continued the plateau trend of the past several years, where the supply of agricultural land for sale on the market remained lower than average, and prices for good quality cropland held mostly steady. Farmers National Company says farmland sale activity in the first part of 2019 was slower than it had been for some time with late spring and early summer, especially void of farms for sale. Planting delays and prevent plantings contributed to the sluggish activity. However, despite the slower land market, Farmers National Company and its agents saw a 25 percent increase in acres sold in 2019 from the prior year and the most since 2014. Several factors will impact the 2020 land market, according to Randy Dickhut of Farmers National. He says Interest rates are low and are poised to remain so during the foreseeable future. Overall, he says, "agriculture is in adequate financial shape, but there are individual and regional concerns." ************************************************************************************ RFA: Ethanol Keeps Gas Prices Lower Amid High Oil Prices Tensions in the Middle East are creating volatile oil markets, as the U.S. ethanol industry reminds drivers how biofuels keep gas prices lower. Oil prices fell on a potential de-escalation between the U.S. and Iran, after reaching a nine-month high this week. Still, analysts expect gas price increases to reach the pump in the days ahead. The Renewable Fuels Association says that at fuel terminals where gasoline is blended, ethanol is currently selling for 40-50 cents per gallon less than gasoline. As U.S. consumers brace for higher prices, a recent study shows the nation’s growing supply of ethanol significantly helps dampen gasoline price shocks that result from sudden oil market disruptions. The study says that if renewable fuels were removed from the fuel supply, gas prices would be more than $1 per gallon higher. RFA President and CEO Geoff Coopers says the recent tensions in the Middle East, and the recent study “highlights the critical need for greater domestic energy security and diversity.”
| Rural Advocate News | Thursday January 9, 2020 |
Washington Insider: Americans Paying Trump Administration Tariffs American businesses and consumers, and not China, are bearing the financial brunt of President Trump’s trade war, the New York Times said this week, and new data is undermining the president’s assertion that the United States is “taxing the hell out of China.” The Times cites a number of studies. For example, “U.S. tariffs continue to be almost entirely borne by U.S. firms and consumers,” Mary Amiti, an economist at the Federal Reserve Bank of New York, wrote in a National Bureau of Economic Research working paper. The other authors of the paper were David Weinstein of Columbia University and Stephen Redding of Princeton. Examining the fallout of tariffs in data through October, the authors found that Americans had continued paying for the levies — which increased substantially over the course of the year. Their paper, which is an update on previous research, found that “approximately 100 percent” of import taxes fell on American buyers. The findings are the latest evidence that voters and American businesses are paying the cost of the administration’s penchant for using tariffs to try to rewrite the terms of trade in favor of the United States. For one thing, manufacturing is slumping, a fact economists attribute at least partly to uncertainty stemming from the trade spats and business investment has suffered as corporate executives wait to see how — or if — the tensions will end. The United States and China have reached a trade truce and are expected to sign an initial deal this month, but tariffs on $360 billion worth of Chinese goods will remain in place. The levies, which are as high as 25%, have forced some multinational businesses to move their operations out of China, sending operations to countries like Vietnam and Mexico. Tariffs may have worked as a negotiating chip to get China to the table, the Times says, but recent academic research shows that leverage has come at a steep price for some American businesses and consumers. The authors of the latest study used customs data to trace the fallout, examining import values before and after the tariffs. The research showed that the tariffs had little impact on China. “We’re just not seeing foreigners bearing the cost, which to me is very surprising,” Weinstein said in an interview. The authors also found a delayed impact from the tariffs, with the decline in some imports roughly doubling on average in the second year of the levies. That is because “it takes some time for firms to reorganize their supply chains so that they can avoid the tariffs,” the authors write. Reaction to the tariffs has varied across business sectors, however. In the steel industry, for example, companies that export to the United States have dropped their prices—suggesting that other countries are in fact paying “close to half” of the cost of tariffs, according to the paper. “The steel industry isn’t getting that much protection, as a result,” Weinstein said. In previous research, the authors found that by December 2018, import tariffs were costing United States consumers and importing businesses $3.2 billion per month in added taxes and another $1.4 billion per month in efficiency losses. They did not update those numbers in the latest study. Their analysis joins a growing body of research examining the effects of the escalating tariffs Trump has imposed since the beginning of 2018. A study released in late December by two economists at the Fed, Aaron Flaaen and Justin Pierce, found that any positive effects that tariffs offered American companies in terms of protection from Chinese imports were outweighed by their costs. Those costs include the higher prices companies must pay to import components from China and the retaliatory tariffs China placed on the United States in response, the economists said. Another study, published in October by researchers at Harvard University, the University of Chicago and the Federal Reserve Bank of Boston, also found that almost all of the cost of the tariffs was being passed on from businesses in China to American importers. The October study found that the situation was not the same for the tariffs that China has placed on American goods in retaliation. The researchers found that American businesses had less success passing on the costs of those tariffs to Chinese importers, most likely because of the types of goods being sold. Many of the products that the United States sells to China are undifferentiated commodities like agricultural goods but China sends many specialized consumer goods to the United States. Amiti’s colleagues at the New York Fed have traced the costs of tariffs in other research and similarly found that import prices on goods coming from China had remained largely unchanged as tariffs rolled out and argued that already-narrow profit margins that leave no room for cutting and a dearth of competitors could be among the factors insulating Chinese exporters. So, we will see. In general, it appears that U.S. industries are increasingly opposing the imposition of higher tariffs as evidence of their impact on domestic consumers and markets has grown, Washington Insider believes.
| Rural Advocate News | Thursday January 9, 2020 |
API Uses Annual Energy Report to Continue Its Attack On Biofuels The American Petroleum Institute (API) utilized a portion of its State of American Energy 2020 report to reiterate its complaints about U.S. biofuel policy. “Biofuel mandates distort the marketplace to use products that can damage vehicles,” API sated. API maintained that the Renewable Fuel Standard (RFS) of reducing U.S. crude oil imports is now “obsolete given growing domestic oil production, and its goal of producing commercially viable cellulosic biofuel has never materialized.” They commented that around 70% of vehicles on the road weren’t designed to run on E15 fuel and that no boats, small engines or motorcycles can use the product. While API makes that claim, EPA approved E15 for any vehicle make from 2001 or newer. Since IHS Markit tracks the average age of vehicles, it shows there are roughly 278 million autos on the road. Of those, nearly 221 million are from model year 2003 or newer. The arguments laid out by API are nothing new and signal that the refining industry will continue their challenges to U.S. biofuel policies ahead.
| Rural Advocate News | Thursday January 9, 2020 |
Other Senate Panels to Consider USMCA Legislation Passage of the U.S.-Mexico-Canada Agreement (USMCA) by the Senate Finance Committee Tuesday, via a 25-to-three vote, is the first consideration of the deal by Senate Committees. The Senate parliamentarian determined Monday that the USMCA legislation will also have to be considered by the Health, Education, Labor, and Pensions Committee; the Environment and Public Works Committee; the Senate Appropriations Committee; the Foreign Relations Committee; the Budget Committee; and the Commerce, Science, and Transportation Committee. Several of those committees have indicated they will hold their votes next week. Their action on the bill does not have to take place in any particular order and the measure cannot be amended – it is an up-or-down vote in each panel. Under U.S. trade law, the USMCA legislation will be discharged from the panels within 15 days whether they act on it or not. But the process of getting their markups scheduled and completed will add additional time to the USMCA approval process. Indications are the initial consideration by the full Senate may not come until late next week at the earliest. USMCA is still fully expected to easily clear the Senate, but the combination of additional committees considering the implementing legislation and the still-pending impeachment trial in the Senate clouds the exact timing at this point.
| Rural Advocate News | Thursday January 9, 2020 |
Thursday Watch List Markets Early tomorrow morning all eyes will be on weekly jobless claims. Also, DTN will be watching for any new developments in the U.S.--Iran conflict, and weather changes in both Brazil and Argentina. Export sales, originally scheduled for Thursday will now be Friday morning. Weather Light, mixed precipitation is expected through the north-central Midwest region Thursday afternoon and evening. Showers and thundershowers develop from the southeast Plains through the southwest and central Midwest mainly late Thursday or during Thursday night. Scattered snow showers and squalls through the Rockies and into the high elevations of northeast California. Rain showers may occur through central and south California. Mainly dry elsewhere in the key U.S. crop and livestock areas. Southern Brazil will see a few thundershowers this afternoon with continued high temperatures. Central Argentina had thunderstorms during the night which will linger today.
| Rural Advocate News | Wednesday January 8, 2020 |
Senate Finance Committee Advances USMCA The Senate Finance Committee Tuesday approved the U.S.-Mexico-Canada Agreement on a 25-3 vote, setting the agreement up for a potential quick passage. Chairman Chuck Grassley, a Republican from Iowa, says the full Senate could consider the agreement within a week. However, if House Speaker Nancy Pelosi sends articles of impeachment to the Senate, that must immediately take priority and would stall USMCA until after the impeachment hearings in the Senate. Grassley told the Finance Committee the USMCA implementing legislation “has something in it for everyone, and it’s not often that we can say that about an implementing bill." Mexico's Senate has already approved the agreement, and Canada plans to approve USMCA following U.S. action. Ranking member of the committee, Democrat Ron Wyden of Oregon, says USMCA provides “long-overdue upgrades to labor standards, the environment and digital trade” compared with the North American Free Trade Agreement, adding the agreement also provides certainty to farmers and manufacturers. ************************************************************************************* Farm Groups Applaud USMCA Action Agriculture groups welcome action in the Senate to advance the U.S.-Mexico-Canada Agreement. Passed by the Senate Finance Committee Tuesday, American Farm Bureau Federation President Zippy Duvall says the agreement is "one step away" from completion. Duvall says passage of the agreement "will protect our valuable trade relationships with our nearest neighbors and return certainty to our markets." The agreement is expected to increase U.S. ag exports by $2 billion and result in a $65 billion increase in gross domestic product. National Pork Producers Council President David Herring in a statement said, "We now urge Senate Majority Leader Mitch McConnell to schedule a vote on the floor as soon as possible." For the U.S. pork industry, USMCA will maintain long-term, zero-duty market access to Mexico and Canada. In 2018, Canada and Mexico took over 40 percent of the pork that was exported from the United States, and a similar percentage is expected in 2019. U.S. pork exports to Canada and Mexico support 16,000 U.S. jobs ************************************************************************************* Purdue/CME Group Ag Economy Barometer December The December Purdue/CME Group Ag Economy Barometer suggests farmers are optimistic about the future, despite a weakened perception of current conditions. The survey dropped three points in December to a reading of 150, down from 153 in November. The Index of Current Conditions dropped 12 points to 141, down from 153 in November. Meanwhile, the Index of Future Expectations remained strong, up two points to a reading of 155. In the December survey, producers were asked whether their farm's 2019 financial performance was better, as expected, or worse than their initial budget projections. Just over-half, 52 percent, stated that their initial projections matched their farm's financial performance. Meanwhile, 30 percent stated it was worse, and 19 percent stated it was better than expected. The barometer is based on a mid-month survey of 400 U.S. crop and livestock producers. A reading over 100 suggests optimism, while a reading under 100 indicates pessimism amongst farmers regarding the ag economy. ************************************************************************************* Loeffler Joins Senate Ag Committee Newly appointed Senator Kelly Loeffler (Leff-ler), a Republican from Georgia, is replacing Georgia Republican David Perdue on the Senate Agriculture Committee. Loeffler was appointed to fill the vacancy caused by the resignation of Senator Johnny Isakson (eye-zeck-son). The Illinois native grew up on a family farm and says she “will stand with our farmers.” Loeffler is co-owner of the Atlanta Dream professional women’s basketball team, and has spent her career as a finance executive. Senate Agriculture Committee Chairman Pat Roberts of Kansas says of Loeffler, “Her farming roots make her a welcome addition to the Committee.” The 49-year-old Loeffler is recognized as the 26th woman currently serving in the Senate. The Senate seat formally occupied by Isakson will face a special election for the seat this year, which could be highly competitive. The winner of the special election will serve out the last of Isakson's term and face reelection in two years. ************************************************************************************* NPPC: Impossible Pork is Impossible The National Pork Producers Council Tuesday called Impossible Foods' naming convention for its plant-based products designed to mimic real pork a brazen violation of labeling law. Citing law that prohibits the use of words that redefine pork as consumers have known it for centuries, Dr. Dan Kovich, director of science and technology for the National Pork Producers Council, says, "What's impossible is to make pork from plants." NPPC supports consumer choice and competitive markets on a level playing field. Accordingly, plant-based and cell-cultured products designed to mimic real meat must face the same stringent regulatory requirements as livestock agriculture, including truthful labeling standards, according to NPPC. Kovich calls the efforts by Impossible Foods, "a brazen attempt to circumvent decades of food labeling law and centuries of precedence." NPPC maintains "plant-based alternative protein products cannot be called pork, and cultured products cannot be called pork without qualification making it clear how they were made." ************************************************************************************ 36th ASA Young Leader Class Kicks Off in Indianapolis The 36th class of American Soybean Association Corteva Agriscience Young Leaders recently began its journey at the Corteva Agriscience Global Business Center in Indianapolis, Indiana. The training session was the first phase of the program designed to identify future leaders within the agriculture community and provide them with opportunities to enhance their skills and network with other farmers. A Corteva spokesperson says the program “provides participants developmental training to hone their leadership skills and strengthen the voice of agriculture.” Representatives from 19 states and the Grain Farmers of Ontario participated in the program. The attendees learned about the soy checkoff and leadership in the future. The Young Leaders also participated in leadership styles and communications training, discussed consumer trends and acceptance. Additional discussion provided updates on other soybean industry advancements. The second phase of the Young Leader program will take place February 25 – 29, 2020 in San Antonio, Texas, with training held in conjunction with the annual Commodity Classic Convention and Trade Show.
| Rural Advocate News | Wednesday January 8, 2020 |
Washington Insider: Possible Digital Tax War Big internet companies have long been the target of complaints that they don’t pay enough taxes. In response, France imposed a 3% levy last year on the digital revenue of companies that make their sales primarily in cyberspace, such as Facebook Inc. and Alphabet Inc.’s Google, Bloomberg is reporting this week. Other countries also are targeting big tech companies, many of which are American, that have multinational earnings that often escape the taxman’s grip. The French law imposes the 3% levy on companies with at least 750 million euros ($834.5 million) in global revenue and digital sales of 25 million euros ($27.8 million) in France, a move that affects “about 30 businesses” Bloomberg says. While most of these are American, the list also includes Chinese, German, British and even French firms. The idea is to focus taxation where users of online services are located, rather than on where companies base their European headquarters or book their earnings. Targeting revenue rather than profit gets around techniques many companies use to shift their earnings to lower-tax jurisdictions. The taxation effort is not entirely French — Italy enacted a similar tax that took effect on Jan. 1. Turkey has proposed a digital tax of 7.5%. Legislation proposed in the UK last year would impose a 2% levy on the revenues of search engines, social media platforms and online marketplaces that “derive value from UK users.” Austria, Spain and Belgium say they are also considering digital levies, typically following the French model, by taxing sales of electronic data, online advertising and the services of intermediaries such as Uber Technologies Inc. and Airbnb Inc. that connect users to products. The U.S. government is charging that the French tax discriminates against American companies. In response, it proposed tariffs on roughly $2.4 billion in French products and says it’s exploring whether to open investigations into the digital taxes proposed in Austria, Italy and Turkey. The authority for the U.S. move is Section 301 of the U.S. Trade Act of 1974 — the same tool used to impose tariffs on Chinese goods due to alleged theft of intellectual property. France says the European Union will retaliate against any U.S. sanctions. France’s finance minister, Bruno Le Maire, said on Jan. 7 that he and U.S. Treasury Secretary Steven Mnuchin had resolved to try to find a compromise, and that France had said it would drop its tax if the U.S. and others agree to a global effort for a uniform approach under the stewardship of the Organization for Economic Cooperation and Development. Before it adopted its digital tax, France pushed for a European Union-wide digital levy that was scrapped when four countries — Sweden, Finland, Denmark and Ireland — declined to sign off on it. Resolving the dispute without escalating trade tensions is a goal of Phil Hogan, the EU’s new trade commissioner. Tax advocates argue that major tech companies are often domiciled overseas in low-tax jurisdictions such as Ireland or Bermuda shift money seamlessly across borders, and can easily avoid paying taxes in countries where they nevertheless make significant sales. More fundamentally, France argues that the structure of the global economy has shifted to one based on data, rendering 20th century tax systems archaic. European Commission data indicate that global tech companies pay a 9.5% average tax rate compared with 23.2% for traditional firms. Bloomberg points out that transatlantic tax wars aren’t new and that Apple Inc. was slapped with a 13 billion-euro bill for back taxes by the European Commission three years ago which the company called political. The U.S. Treasury tried and failed to sway the EU’s Apple investigation, which alleged that the company got an illegal subsidy in Ireland due to rules there governing the transfer of sales booked elsewhere in Europe. The Commission has also probed Google’s Irish tax arrangements and ordered it to pay 250 million euros ($278.17 million) in back taxes to Luxembourg. Other U.S. companies, including non-technology firms such as Starbucks Corp. and Nike Inc., have also been targeted in tax probes. The EU insists that the common thread isn’t that they’re American but that they’ve used complex legal structures and intellectual property licensing to limit their tax payments. Bloomberg says that taxes are only part of a bigger EU backlash against big tech. Internet firms have been put on notice over issues ranging from privacy to market dominance — and they’re fighting back with lobbying and court cases. Google won a legal fight against a $1.2 billion French tax bill in April. Apple and Amazon are contesting their respective European tax decisions in EU courts, and a legal victory could halt that part of the bloc’s crusade. Some companies may be changing their tax structures or moving income outside of the EU to stay ahead of the curve, as some European lawmakers alleged about Apple. So, we will see. Bloomberg editors have criticized both sides, arguing that the French tax is wrong, and so is the U.S. response. They may be right, since such fights often expand to include other vulnerable sectors well beyond the initial contestants — as the NAFTA fight did. Thus the digital tax issue is one producers should watch closely as it emerges and intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday January 8, 2020 |
FSA Suspends Payments On 2018, 2019 Sugarbeet Losses Under WHIP+ USDA’s Farm Service Agency (FSA) is instructing state and county offices to not approve any sugarbeet pay groups on any application under the Wildfire and Hurricane Indemnity Program Plus (WHIP+) application, advising them that “additional guidance for processing sugarbeet losses will be forthcoming.” The agency cited the Fiscal Year (FY) 2020 government funding package which provided new legislation for paying sugarbeet losses under WHIP+ that require USDA to pay 2019 and 2019 losses through cooperative processors. “Due to the new legislation, 2018 and 2019 sugarbeet loss payments may be paid outside of WHIP+,” FSA said. It is not clear what the new guidance referenced by FSA will be. However, contacts advise the payments will be made.
| Rural Advocate News | Wednesday January 8, 2020 |
Report: China Will Not Boost Grain Import Quotas Under Phase One Trade Deal China will not increase the tariff-rate quotas on corn, wheat and rice under the phase-one trade deal, according to Han Jun, a vice minister of agriculture, as quoted by Caixin media. The TRQ is available to global markets and "we won't adjust it for one country,” Han said. Reuters reported there was no comment from the Chinese Ag Ministry on the matter. China has previously set the TRQs at 9.64 million metric tons of wheat, 7.2 million metric tons of corn and 5.32 mmt of rice. U.S. trade officials have been pressing China to fulfill the TRQs, but contacts indicate no increase was expected. The U.S. challenged China’s operation of the TRQs at the WTO and won the case, and China said they would comply with the WTO ruling.
| Rural Advocate News | Wednesday January 8, 2020 |
Wednesday Watch List Markets Early on Wednesday the ADP Employment report will be out as well as consumer credit. DTN will be watching closely the updated South American weather forecasts along with any news from the U.S.-Iran conflict ongoing. Weather Snow showers in the northeast U.S. during Wednesday. Rain through coastal areas of the Pacific Northwest and southward into northern California. Snow or snow showers and squalls from the mountains of the Pacific Northwest, across the northern Rockies and the northern portion of the Plains through the southeast portion of the Canadian Prairies. Some within these areas may see up to several inches of snow bringing impacts to travel and transport. Some impact to livestock. Mainly dry elsewhere in the key U.S. crop and livestock areas Wednesday. Mostly dry in key corn and soybean areas of southern Brazil and central Argentina. Temperatures near to slightly above normal.
| Rural Advocate News | Tuesday January 7, 2020 |
USMCA Senate Passage Possible This Week The Senate could pass the U.S.-Mexico-Canada Agreement by the end of this week. A Trump administration official told reporters over the weekend the agreement could clear the Senate by Thursday or Friday. The Senate Finance Committee scheduled a markup the agreement Tuesday (today), and the Senate could schedule a floor vote following the hearing. White House trade adviser Peter Navarro says fast track trade legislation requires a minimum wait of 20 hours after a committee markup before a vote. The timeline differs from what was offered by Senate Majority Leader Mitch McConnell following House passage of the agreement. At the time, McConnell said USMCA would follow impeachment hearings in the Senate towards the end of this month. However, the impeachment trial won’t begin this week in the Senate. The House passed the trade deal following a year-long negotiation between the Trump Administration and House Democrats seeking changes to the agreement. ************************************************************************************* Chinese Officials to Travel to Washington to Sign Phase One Deal A Chinese delegation will travel to Washington, D.C. next week to join President Donald Trump in signing the phase one trade agreement between the two nations. The South China Morning Post reports China’s trade delegation plans to travel to the U.S. on January 13, two days before President Trump plans to sign the accord. China and the White House both have yet to officially announce the visit and the officials included in the delegation. However, Chinese Vice Premier Liu (Lou) He will lead the group to Washington. The signing of the deal will mean increased agricultural purchases by China, as well as a partial end to the trade war that’s dominated headlines for the past 18 months. China’s soybean imports from the U.S. recently hit a 20-month high at 2.6 million tons, the highest number since March of 2018, when the trade war between the world’s largest economies began to pick up steam. ************************************************************************************* USDA Seeks Input on Agricultural Conservation Easement Program Rule The Department of Agriculture’s Natural Resources Conservation Service seeks public comments on its interim rule for the Agricultural Conservation Easement Program, known as ACEP. The rule is considered USDA’s premier conservation easement program, helping landowners protect working agricultural lands and wetlands. The rule – now available on the Federal Register – takes effect on publication and includes changes to the program prescribed by the 2018 Farm Bill. NRCS Chief Matthew Lohr says the changes to the program “make it stronger and more effective and will result in even better protection of our nation’s farmlands, grasslands and wetlands.” Changes to ACEP for agricultural land easements include USDA authorizing assistance to partners who pursue “Buy-Protect-Sell” transactions. Additionally, the new rule requires a conservation plan for highly erodible land that will be protected by an agricultural land easement. Changes to wetland reserve easements will identify water quality as a program purpose for enrollment of wetland reserve easements and expand wetland types eligible for restoration and management under wetland reserve easements. ************************************************************************************* NASDA: Policy Dominates 2020 Priorities Policy issues top the priority list for the National Association of State Departments of Agriculture in 2020. The NASDA board of directors identified several policy issues to tackle this year, focusing most efforts on international trade, workforce development, food safety and hemp production. NASDA is urging lawmakers in the Senate to quickly pass the U.S.-Mexico-Canada Agreement, which could happen this week. The organization also seeks full funding to implement the Food Safety Modernization Act and pledges to work with the Food and Drug Administration and states to effectively implement the Act. However, hemp may be the top priority for NASDA in 2020. Before harvest comes and the Department of Agriculture interim rule goes final, many questions and details remain to be navigated. NASDA is working with USDA to “provide a clear pathway for U. S. hemp growers.” NASDA CEO Barb Glenn says, “it’s imperative that FDA establishes consistent CBD regulations to ensure the crop has a stable market and consumers are safe.” ************************************************************************************ 2020 Fuel Outlook: Lower National Average Prices National average fuel prices for both gasoline and diesel in 2020 are expected slightly lower than 2019, but with several uncertainties. Gas Buddy’s 2020 Fuel Outlook predicts 2020 will feature a yearly national average of $2.60 per gallon, representing a two-cent drop versus 2019. The report predicts the 2020 national average diesel price at $3.03 a gallon. However, the report notes prices are largely season and location-driven, noting that refinery maintenance, seasonable blend switches, and environmental regulations all impact price. Further, the report suggests that with the U.S. entering an election year in 2020, the most likely scenario will be for President Donald Trump to shore up the U.S. economy ahead of the election to increase his chances of being re-elected. Researchers say such a move may contribute to a more reliable period of growth and rise in oil demand, met by increasing global oil production, even against OPEC’s production curb through March. ************************************************************************************* Coca-Cola Company Purchases all Shares of fairlife Milk Brand The Coca-Cola Company announced the acquisition of all shares of fairlife LLC. Coca-Cola Company takes 100 percent control of fairlife after previously owning a minority stake of 42.5 percent of the company. Financial terms of the transaction were not disclosed. Launched in 2012, fairlife LLC started with a high-protein milkshake called Core Power and has grown to offer a broad portfolio of products in the fast-growing value-added dairy category in North America. Coca-Cola says fairlife will continue to operate as a stand-alone business based in Chicago. Value-added dairy products have been growing steadily in the United States, in contrast to the traditional fluid milk category, with fairlife milk products playing a significant role in that growth. The brand also has been supported by the reach of Coca-Cola’s U.S. system with products distributed both through the Minute Maid distribution system, as well as by Coca-Cola bottlers across the country. 2018, fairlife also launched in Canada and will begin local production and sourcing in Ontario in spring 2020.
| Rural Advocate News | Tuesday January 7, 2020 |
Washington Insider: Economists and Economic Advice The American Economic Association has been meeting this week, and has not done much to clear up the outlook for the U.S. and global economies, it seems. For example, the U.S. and the euro area face “daunting economic challenges” in a world of low inflation and interest rates and central banks alone don’t have the tools to cope, according to former European Central Bank President Mario Draghi and ex-Federal Reserve Chair Janet Yellen. “I believe that for the euro area there is some risk of Japanification but it is by no means a foregone conclusion” if it acts comprehensively to avoid a deflationary malaise, Draghi said via a video link to the conference in San Diego. “The euro area still has space to do this, but time is not infinite,” he added. Yellen, now at the Brookings Institution in Washington, said she agreed with former Treasury Secretary Lawrence Summers that the U.S. was enmeshed in “secular stagnation” — a state where desired savings are bigger than investment and interest rates are depressed as a result, Bloomberg said. Yellen ticked off a number of structural forces holding down interest rates--including an aging population and sluggish productivity--and suggested they might be around for a while. “These factors are apt to prove chronic by nature,” she said. Draghi took euro area governments to task for working at cross purposes with the ECB’s efforts to aid the economy in recent years by pursuing restrictive fiscal policies. “This is why the ECB has been consistently calling for fiscal policy to play a stronger role and capitalize” on the low rates, he said. He counseled policy makers in Europe against becoming resigned to slipping into deflation. “It is certainly not too late for the euro area to avoid this,” he said, adding, “The euro area is not in a deflationary trap.” Yellen said that monetary policy in the U.S. should not be written off as a policy tool to combat recessions just because interest rates are so low. She agreed with her predecessor, Ben Bernanke, that quantitative easing and forward interest-rate guidance can be effective in providing stimulus to the economy. But while “monetary policy has a meaningful role to play, it’s unlikely to be sufficient in the years ahead,” Yellen said. It “should not be the only game in town.” “We can afford to increase federal spending and cut taxes” to support the economy in a recession even though government debt has risen sharply in recent years, the former policy maker said. Yellen did, though, express concern about financial stability risks arising out of an extended period of low interest rates. She also bemoaned the paucity of macro-prudential tools the U.S. has to deal with that. In the meantime, Bloomberg also highlighted the results of an evaluation by the U.S. Chamber of Commerce that said that the ongoing trade wars threaten negative impacts for numerous U.S. states. The Chamber warned that American businesses and consumers are “bearing the brunt of the trade war” and called on the administration to change course. Crunching Commerce Department data, it concludes that more than half of U.S. states are facing retaliatory tariffs on at least 25% of their exports to the European Union and China. The report lumps together impacts for consumers and exporters, and is likely aimed at administration assertions that exporting countries bear the brunt of tariffs, many of which actually are paid by U.S. consumers. In the meantime, the sudden shift in focus in Washington from the economy and global trade prospects to tensions with Iran, together with the impeachment process, has the potential to change the tone and perhaps the process itself. So, we will see. The administration is pushing ahead on several fronts, including current and hoped for trade talks — but prospects of war may change a great deal and should be watched closely as the national debates continue, Washington Insider believes.
| Rural Advocate News | Tuesday January 7, 2020 |
Fed Acknowledges Ag Struggles U.S. agriculture was on the mind of central bankers when the Federal Open Market Committee (FOMC) meet December 10-11, according to the minutes of that session released Friday. Agriculture is not typically something that gets much focus by Fed officials. But Agriculture and energy sectors were a concern point for Fed members. “A number of participants commented on challenges facing the energy and agriculture sectors,” the minutes said. “A few participants remarked that activity in the energy sector was especially weak, reflecting low petroleum prices, low profitability, and tight financing conditions for energy-producing firms.” As for agriculture, the minutes indicated “several participants noted that the agricultural sector also faced a number of difficulties, including those associated with trade developments, weak export demand, and challenging financial positions for many farmers.” But “a couple” of FOMC participants pointed out that “farm subsidies from the federal government were offsetting a portion of the financial strain on farmers.”
| Rural Advocate News | Tuesday January 7, 2020 |
USMCA Action on Tap in Senate The Senate Finance Committee is setting the stage for action on the U.S.-Mexico-Canada Agreement (USMCA) in the chamber. The panel will hold its mock markup today. “This markup will move us closer to ratifying USMCA in early 2020,” Grassley said when the markup was announced in December. “Farmers, manufacturers and all American workers will soon be able to benefit from a stronger and modernized trade agreement with Canada and Mexico.” Timing of a vote in the full Senate, however, may now come sooner than previously expected. The House has so far delayed sending its articles of impeachment to the Senate, delaying when the trial in the Senate can begin. In December, Senate Majority Leader Mitch McConnell, R-Ky., said that the USMCA action in the upper chamber would await completion of the impeachment process. But as the delay continues relative to impeachment continues, it ups the odds that the full Senate could act on USMCA before the impeachment trial.
| Rural Advocate News | Tuesday January 7, 2020 |
Tuesday Watch List Markets Early on Tuesday we'll have the trade deficit numbers out, along with factory orders and the manufacturing index. We'll also watch for any new reaction to the U.S.-Iran conflict. Weather in South American crop areas will be closely watched as well. Weather A small area of snow, ice and rain through the east-central U.S. during Tuesday. Rain through coastal areas of the Pacific Northwest and ice or snow across the northern Rockies to the northwestern Plains. Mainly dry elsewhere in the key U.S. crop and livestock areas during Tuesday. In South America we can expect scattered showers from the Parana area of southern Brazil northward and mostly dry conditions in the central and south Argentina crop belt. No significant hot weather in either Brazil or Argentina today.
| Rural Advocate News | Monday January 6, 2020 |
Senate to Continue Ordinary Business During Impeachment Hearings Delay Senate Majority Leader Mitch McConnell signaled an opportunity to quickly consider the U.S.-Mexico-Canada Agreement. In a speech on the Senate floor Friday, McConnell says the Senate will "go about ordinary business," because House Speaker Nancy Pelosi is holding the articles of impeachment, thought to delay USMCA consideration in the Senate this month. A hearing is on the calendar Tuesday morning for the Senate Finance Committee to markup the implementing legislation for USMCA. McConnell charged Democrats in the House were “searching desperately for some new talking point” on impeachment, and alleged they were developing cold feet. Senate Minority Leader Chuck Schumer responded, however, that "instead of trying to find the truth,” comments by McConnell indicate there will not be a fair impeachment trial. Senate consideration of USMCA was expected after the impeachment trial in the Senate. However, with a delay and fighting amongst lawmakers regarding the trial, USCMA could sneak through before a trial begins. ************************************************************************************* R-CALF: Cattle Importers Control U.S. Policy The Department of Agriculture last week issued a proposed rule to reapportion the Beef Checkoff Program’s Cattlemen’s Beef Board. R-CALF says the proposed rule reveals importers control more cattle inventories than any state in the United States except Texas. To make its calculations regarding who controls domestic cattle inventories, R-CALF says USDA counts imported live cattle and converts imported beef into a live cattle equivalent. Importers now control about 6.9 million cattle in the U.S. market. Only the state of Texas, which controls about 12.6 million cattle, exceeds the importers' control. The organization says the combination of cattle and beef imports represent the largest agricultural commodities imported from Canada and Mexico. USDA data shows U.S. imported $4.1 billion in cattle and beef from Canada and Mexico in 2018. R-CALF CEO Bill Bullard claims the importers dominant control over cattle inventories “affords them extraordinary influence” on U.S. lawmakers, adding cattle and beef importers are opposed to mandatory country-of-origin labeling because “they do not want consumers to know the origins of their cheaper-sourced products.” ************************************************************************************* Bunge Sells Share of U.S. Ethanol Plant Bunge last week announced the sale of its share of an ethanol production facility. Southwest Iowa Renewable Energy, or SIRE, repurchased Bunge’s membership units effective December 31, 2019. The purchase was made under the terms of the Bunge Membership Interest Purchase Agreement and ends Bunge’s 13-year ownership interest in SIRE. Andrés Martín, North America country manager for Bunge, stated, “As Bunge focuses our resources on our core businesses, selling our shares in SIRE, while maintaining a relationship, is an attractive opportunity.” SIRE is located on 275 acres in Council Bluffs, Iowa, operating an ethanol plant that is permitted to produce 140 million gallons per year. In addition to the stock repurchase, SIRE will assume responsibility for originating corn and selling dried distillers grains produced by the plant. Under a revised agreement, Bunge will continue to purchase all of the ethanol produced by SIRE. SIRE will also continue to lease rail cars from Bunge under existing lease agreements. ************************************************************************************* Corn Growers Call EPA Atrazine Decision a Reasonable Approach Corn farmers say the Atrazine Preliminary Interim Decision is a positive for farmers who rely on atrazine for weed control. The Triazine Network, a coalition including the National Corn Growers Association and advocates for science-based regulatory decisions regarding atrazine, welcomed the document published in the Federal Register last week. The coalition says the decision supports the Environmental Protection Agency's commitment to using credible scientific research in setting a reasonable aquatic ecosystem Level of Concern for atrazine. The decision corrects a recommendation made in the 2016 Ecological Risk Assessment to set the Level of Concern at 3.6 parts per billion, an ultra-low level that would have banned the use of atrazine in much of farm country. The lower level was based on questionable research, according to the coalition, including studies that had been turned down by EPA's 2012 Science Advisory Panel. The publication of the atrazine decision in the Federal Register opens a 60-day comment period that ends on March 2, 2020. ************************************************************************************ AFIA: December Spending Bills Improve Feed Ingredient Approval Process The American Feed Industry Association says spending bills passed last month will improve the approval process for animal feed ingredients. The 2020 fiscal year appropriations package allocates new dollars to the Food and Drug Administration’s Center for Veterinary Medicine to hire additional staff specifically for reviewing new animal food ingredient submissions. The $5 million allocation from appropriators will allow the FDA to nearly double ingredient approval staff, which will reduce the length of review time by the agency in the approval timeline. Constance Cullman, AFIA’s president and CEO, says, "the lengthy ingredient review processes have hindered the approval process for animal feed ingredients” that can improve the safety, quality and nutrition of feed. A study funded by the Institute for Feed Education and Research found that for every year of delay in the approval process, submitting companies across the animal food manufacturing industry were losing an average $1.75 million annually in revenue per ingredient. ************************************************************************************ Syngenta Announces Crop Challenge Prize Committee Syngenta and the Analytics Society of INFORMS have selected the prize committee for the 2020 Syngenta Crop Challenge in Analytics, a competition in which entrants develop data-driven models to address various challenges inherent in agriculture. Now in its fifth consecutive year, the Syngenta Crop Challenge in Analytics is a collaborative effort between Syngenta and the Analytics Society of the Institute for Operations Research and the Management Sciences, or INFORMS. In the 2020 challenge, entrants are tasked with developing data-driven methodologies that can help predict the performance of potential corn seed products. Judges include experts from U.S. universities, Syngenta, American Airlines and Land O’Lakes. The prize committee will evaluate entries following the January 21, 2020, submission deadline, and finalists will be announced in March 2020. Winners will be announced during the 2020 INFORMS Conference on Business Analytics in April. The first-place winner will receive $5,000, the runner-up will be awarded $2,500, and the third-place winner will receive $1,000.
| Rural Advocate News | Monday January 6, 2020 |
Washington Insider: Monetary Policy Seen as Appropriate Late last week, Federal Reserve officials reported on their review minutes of recent meetings and called their monetary policy “likely to remain appropriate for a time” even amid what they saw as persistent downside risks, Bloomberg reported over the weekend. The minutes of the Dec. 10-11 Federal Open Market Committee released Friday noted that global developments, related to both persistent uncertainty regarding international trade and weakness in economic growth, continued to pose some risks to the outlook. However, Fed officials left interest rates unchanged at their final 2019 meeting following three straight cuts. They also signaled expectations that monetary policy would be on hold through 2020, which would keep the central bank on the sidelines during a U.S. presidential election year. Participants saw sustained economic expansion, labor market strength, and inflation near their 2% goal as the most likely outcomes, in part because of their monetary policy support. A number said the economy was showing resilience amid global headwinds. Fed officials worried that inflation continued to fall short of their 2% target, the minutes said. “Various participants were concerned that indicators were suggesting that the level of longer-term inflation expectations was too low.” Policy makers were also optimistic about the labor market, with participants remarking on indications that the unemployment rate could fall further without putting pressure on inflation. In addition, a “number of participants noted that the labor force participation rate could rise further still,” the minutes said. Thirteen of 17 officials forecast leaving rates on hold in 2020, according to projections released at the last meeting, with four penciling in a quarter-point hike. A majority forecast at least one increase in 2021 and 2022. Not a single official forecast a rate cut in the next three years. Officials also focused on their recent steps to calm money markets following strains in September that sent overnight rates surging. Among topics mentioned were “the potential role of a standing repo facility in an ample-reserves regime,” the minutes said. The Fed provided $256 billion of temporary liquidity via open market repurchase operations over the end of the year to avoid a cash crunch. The final operation of 2019 saw just $25.6 billion pumped into the system, compared with a maximum available offering of $150 billion. It plans repo operations through January. The minutes also discussed highlights from the system’s open market account manager’s report to the committee with the expectation that the Fed could consider expanding security purchases for reserve management to include coupon-bearing Treasury securities with a short time to maturity if necessary to ease liquidity constraints in the Treasury bill market. The minutes noted that expectations for the future include a gradual transition away from active repo operations next year as bill purchases supply a larger base of reserves, although it noted that “some repos might be needed through April, when tax payments reduce reserves,” and that it may be appropriate at some point to adjust rates on excess reserves and on overnight reverse repurchase agreements. It noted that the Fed is currently buying $60 billion of Treasury bills a month to boost bank reserves and meet longer-run liquidity demand. So, we will see. Considerable uncertainty continues to threaten the outlook as the mid-January date for signing Phase One of the expected China deal approaches and as tensions with Iran continue to grow. At the same time, it is clear that the sharp signs of economic slowdown that were evident in recent months have abated significantly, in spite of the new threats from the Middle East, Washington Insider believes.
| Rural Advocate News | Monday January 6, 2020 |
EU Trade Chief to Visit US The European Union’s new trade chief Phil Hogan plans to visit Washington on Jan. 14-16 in a bid to mend transatlantic relations impacted by U.S. measures against imports from the bloc and its attacks on the international commercial order. Hogan will meet with U.S. Trade Representative Robert Lighthizer to discuss disputes including an American threat to hit $2.4 billion of French goods with tariffs in retaliation over a digital-services tax in France. Plus, Hogan figures to be potentially a key player relative to any agricultural negotiations as he previously served as the EU Ag Commissioner.
| Rural Advocate News | Monday January 6, 2020 |
Monday Watch List Markets There are very few government reports to talk about on Monday. DTN will be watching for any news over the weekend of reactions to the airstrike that took out the known terrorist and Iranian commander Soleimani. We will also be focusing on South American weekend weather and forecasts ahead. Monday's export inspections will be closely watched. Weather Mainly dry conditions or with only small areas with light precipitation through the key crop and livestock areas of the central and southeast U.S. Monday. No significant transportation concerns today. Rain through the Pacific Northwest and snow across the northern Rockies. In South America, southern Brazil continues on the hotter and drier side today while central Argentina has lingering rain after thunderstorms developed last night. The recent spell of hotter, drier weather over Rio Grande Do Sul, Brazil remains a concern.
| Rural Advocate News | Friday January 3, 2020 |
Coalition Seeks Ag Labor Wage Reforms The Agriculture Workforce Coalition Thursday urged the U.S. Senate to take up legislation to solve the agricultural labor crisis. A letter penned by the coalition to the Senate urges lawmakers to address the Adverse Effect Wage Rate, which increased nationally by six percent for 2020. The rate is the required wage for farmers who use the H-2A program. In its letter, the coalition asks the Senate to consider the impacts of the rate on U.S. farmers. The group seeks an alternative that will ensure a level playing field for farmers and ranchers making them more competitive with foreign producers. Additionally, the coalition says farmers who use the H-2A program to procure legal workers from other countries must comply with “a complicated and expensive application” process. Over the last five years, the Adverse Effect Wage Rate has increased nationwide by 17 percent on average while revenues for fruits and nuts have increased only three percent and vegetables and melons have seen no revenue increases. ************************************************************************************* USMCA Senate Markup Scheduled for Tuesday The U.S. Senate will take its first look at the U.S.-Mexico-Canada Agreement Tuesday if the House sends the implementing legislation to the Senate. Senate Finance Chairman Chuck Grassley announced the hearing after the House passed the agreement, along with articles of impeachment, when House Speaker Nancy Pelosi chose to hold the articles of impeachment, rather than sending them on to the Senate. However, the hearing is still not on the official calendar for the committee. The hearing, if held, would be the first step in getting the trade deal passed by the Senate. Progress will depend on the impeachment hearings. Previously, Senate leadership expected the impeachment hearings to take up to a month, leaving little room at the end of January or early February for USMCA passage. If the impeachment hearings are delayed by a few weeks, the Senate could consider and pass the USMCA implementing legislation before the hearings. The House approved the agreement by a 385-41 vote on December 19. ************************************************************************************* Grains Council Announces Annual Corn Harvest Quality Report After one of the United States’ most challenging growing seasons in history, The U.S. Grains Council annual Corn Harvest Quality Report shows resiliency in agriculture. The report is based on 623 samples collected from inbound farm-originating trucks at harvest. Kurt Shultz, USGC senior director of global strategies, says the report provides “transparency about crop conditions and consistently reinforce that the United States is the world’s most reliable supplier of good quality corn.” The Grains Council’s global staff and grower-leaders will share the results of the first report in a series of crop quality seminars around the world, beginning in Taiwan this month. A forthcoming companion report – the 2019/2020 Corn Export Cargo Quality Report – will focus on export cargo samples collected from corn shipments undergoing federal inspection and grading processes at export terminals. The reports offer reliable information on U.S. corn quality from the farm to the customer based on transparent and consistent methodology. ************************************************************************************* USDA Accepting Applications for North Africa Trade Mission The Department of Agriculture is recruiting interested U.S. exporters for its first 2020 trade mission, which will take place in Casablanca, Morocco, March 16-19. The mission will focus on boosting U.S. agricultural exports to North Africa and will include interested buyers from several countries in the region. This will be the second USDA trade mission to Africa within six months, supporting the Donald Trump administration’s Prosper Africa initiative to foster two-way trade and investment between the United States and Africa. With North Africa’s growing demand for food and feed products, the region is fertile ground for U.S. agricultural export sales, according to USDA. Officials say Morocco is a promising market thanks to the U.S.-Morocco Free Trade Agreement and the country’s high-quality infrastructure and stable economy. In 2018, the country imported $595 million of U.S. agricultural and related products. The deadline to apply for the North Africa trade mission is January 16, 2020. Learn more at www.fas.usda.gov. ************************************************************************************* First 2020 Drought Monitor Released The first weekly Drought Monitor of 2020 shows dry conditions in Texas, the Four Corners states, and the Pacific Northwest. Released Thursday, the report shows moderate to severe drought continues across southwest Oklahoma and areas of the Texas Panhandle and northwest Texas, which received lighter rainfall amounts. Changes to the drought picture across the remainder of Texas included a slight drought reduction in central and southwest parts of the state, based on recent rainfall and lack of short-term dryness. Meanwhile, drier weather returned to the Pacific Northwest during the final week of December. Following the period of heavy precipitation during mid to late December, no changes were made to the ongoing abnormal dryness and short-term moderate drought areas. Water year to date, since October 1, shows precipitation deficits of more than 12 inches. And, pockets of moderate to severe drought cover parts of the Four Corners states, with the majority of Utah experiencing drought conditions. ************************************************************************************ 2020 Offers Fewer Tax Burdens for Farmers, Ranchers The new year brings less of a tax burden for farmers and ranchers when it comes to health insurance, according to the American Farm Bureau Federation. In spending bills passed by Congress before the holiday break, lawmakers included a permanent repeal of the Health Insurance Tax, which was enacted as part of the Affordable Care Act. AFBF says the tax has increased health insurance costs for farmers, ranchers and other small businesses by imposing a levy on the net premiums of health insurance companies, which is then passed on to consumers. The spending bill also retroactively reinstates and extends tax incentives for biodiesel and renewable biodiesel through December 31, 2022, and tax credits for second-generation biofuels through 2020. In addition, the measure retroactively restores and extends through December 31, 2022, the 50 percent tax credit for short line railroad maintenance. Short line railroads are first- and last-mile carriers that connect small towns, farms and factories to the national rail network, creating jobs and stimulating economic growth in thousands of local communities.
| Rural Advocate News | Friday January 3, 2020 |
Washington Insider: Outlook for China Tech The media is full of prognostications these days, mainly focused on the U.S. outlook. However, Bloomberg is focusing heavily on China, as well, and says this week that the tech industry there enters a new year after weathering unprecedented turbulence in 2019. In the past, when giants emerged in social media and artificial intelligence they faced “the brunt of Washington’s campaign to contain the world’s No. 2 economy,” Bloomberg says and believes that there is little reason to think 2020 will be much different, given U.S. efforts to hobble Chinese champions from Huawei Technologies Co. to SenseTime Group Ltd. American lawmakers went after some of the country’s biggest names last year. The heightened scrutiny came just as pressure back home intensified. Beijing worked to scrub sensitive content from ByteDance apps and Tencent Holdings Ltd.’s WeChat, while the economy grew at its slowest pace in decades. Investors cooled on the sector with venture capital activity halving, triggering fears the industry’s heyday is over. That in turn demoralized the country’s already-overworked tech professionals, who rebelled for the first time against the 70-plus hour workweeks that Alibaba founder Jack Ma labeled the norm. Now Bloomberg thinks that, given Washington’s increasing hostility, China is even more intent on devising alternatives to foreign technology from AI chips to blockchain solutions while propping up local champions and that this is “bad news for the likes of Qualcomm Inc. and Apple Inc. that depend on China for much of their revenue.” It has started to upend a decades-old supply chain centered around China, threatening to split the old world order in two. It’s not just in hardware – from Russia to Southeast Asia, many governments have begun to co-opt characteristics of the Chinese internet arena, from harsh fake-news laws to censorship and data sovereignty. This was the first year we understood China tech at its most global ever – but that glimpse revealed “the specter of it becoming more and more insular,” said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. “This is bigger than just the U.S., in terms of assuaging the fears of countries like India that (Chinese) platforms aren’t going to disseminate nude photographs or hate speech.” The industry’s woes may be best quantified by a plunge in capital flow. The amount of venture money invested plummeted by more than 50% to about $50 billion from a record $112 billion in 2018, when it topped the U.S., according to the market research firm Preqin. Funding dropped in the U.S., too, but only slightly. China birthed only 15 unicorns, or startups worth at least $1 billion, down from 35 the year before, according to CB Insights. The decline coincided with a loss of confidence in some of the industry’s marquee names, exemplified by the rocky debuts of WeWork and Uber Technologies Inc. While Alibaba raised $13 billion in a milestone Hong Kong offering, smaller names like SenseTime and Full Truck Alliance struggled to raise capital. “The power of the mobile revolution is coming to an end. Globally, we are seeking what comes next,” said Kai-Fu Lee, founder of Sinovation Ventures. The startup and venture capital industry is likely headed for a shakeout. Many investments from the past bubbly years aren’t panning out, with startups struggling to live up to their valuations. Fundraising by China-focused venture firms fell by about 50% to about $13 billion, according to Preqin. “China tech is going global, going mainstream and shaking things up more than ever,” said Rebecca Fannin, founder of technology consultancy Silicon Dragon. “More U.S. startups will follow China business models.” However, China’s position as factory for the world of technology is in jeopardy. The (mainly Taiwanese) assemblers of the world’s electronics are exploring options beyond China to varying degrees. From Inventec Corp. to Foxconn Technology Group and Quanta Computer Inc., the makers of everything from iPhones to Dell laptops have either moved production back to Taiwan or to further-flung regions around Asia, seeking to escape U.S. tariffs. The idea is that, even if Washington and Beijing strike a trade deal, diversification is essential in the longer term given tensions are unlikely to subside and labor costs will rise. Even leading Chinese hardware suppliers recognize the risks. In addition, last year’s experience forced Chinese tech workers to come to terms with the new reality. Many had taken jobs with startups in the hope of cashing in when they debut or get bought. But as that deal-making streak cooled, the prospect of working long hours – 996, or 9 a.m. to 9 p.m., six days a week – lost much of its appeal. In March, Chinese programmers on GitHub put together a list of companies known for short-changing their employees on overtime which led to a greater awareness of the human cost of China’s tech boom. “What’s changed is the trade war, the talk of decoupling,” said Paul Triolo, head of global technology policy at Eurasia Group. “This has really galvanized the authorities. It doesn’t necessarily mean that they will be more successful. But they’re determined.” So, we will see. Chinese competition in high tech areas has shocked many in the U.S., at the same time it has strengthened that nation’s demand for many U.S. products – so the implications of trade concessions have the potential to be highly complex, observers say. Clearly, the evolution of any trade deal with China should be watched closely by U.S. producers as the trade policy debates intensify, Washington Insider believes.
| Rural Advocate News | Friday January 3, 2020 |
CCC Commodity Loan Interest Rate Down For January Marketing Assistance Loans of less than one year disbursed in January will carry an interest rate of 2.5%, according to the Commodity Credit Corporation (CCC). The rate for January is down from 2.625% in December. While not a significant decline, this still gives those opting to use the marketing assistance loan program a slightly lower cost to the nine-month loans. And, loan activity at times can pick up in January as producers seek cash flow
| Rural Advocate News | Friday January 3, 2020 |
US-China Trade Still in Headlines as 2020 Opens China remains the focal point for many in U.S. agriculture as 2020 arrives, with the signing of the phase-one trade deal now expected to happen January 15. China has taken actions on imports, implementing provisional import tax rates that are lower than the most-favored-nation rates for more than 850 commodities on Jan. 1, 2020. The list includes frozen pork, frozen avocados and non-frozen orange juice, in addition to some pharmaceutical products/materials. China signaled the action was coming just ahead of 2020 and appears to have made good on the action. This also puts attention on the level of tariff reductions that will be seen under the Phase One agreement which would greatly enhance U.S. competitiveness in several areas. Chief U.S. ag trade negotiator Gregg Doud said the purchase commitments by China equate to $16 billion in additional ag buys beyond the $24 billion baseline level of Chinese purchases in 2017 – before the trade war with the U.S.
| Rural Advocate News | Friday January 3, 2020 |
Friday Watch List Markets Friday's early reports will feature a manufacturing index report and construction spending. We will be watching South American weather updates for any changes, and any news regarding the U.S.-China phase one trade signing, expected to take place January 15 in Washington. Weather Rain, showers and thundershowers during Friday from the north and east Delta and the southeast to east-central Midwest through the east-central and southeast U.S. areas. The heaviest activity will occur in the southeast US to the Carolinas as thunderstorms develop. A band of mostly light snow or snow showers is expected to develop over the northwest Midwest and move into central areas of the Midwest during today. The northeast Midwest may also see snow or mixed precipitation tonight. Drier elsewhere in the key US crop and livestock areas Friday. In South America key growing areas of southern Brazil and central Argentina will be dry today but with cooler than normal temperatures.
| Rural Advocate News | Thursday January 2, 2020 |
Trump Will Sign Phase One Deal January 15 President Donald Trump put a date on signing the Phase One trade deal with China, thanks to Twitter. He’ll sign the deal with China on January 15, making the agreement between the two largest economies official. The highlight of the deal that’s most interesting to agriculture is China will increase its purchases of U.S. agricultural products in exchange for the U.S. lowering tariffs on some of its imports. “The ceremony will take place at the White House,” Trump says on Twitter. “High-level representatives of China will be present.” In addition to the ag purchases, China agreed to new commitments on intellectual property protections, forced technology transfers from U.S. companies, as well as new currency practices. Bloomberg says the deal will calm some of the fears that the trade war between the nations would continue long term. The president also says he’ll be traveling to Beijing at a later date to begin Phase Two negotiations. The precise details of the agreement haven’t been released to the public yet. U.S. Trade Representative Robert Lighthizer says the details will come out when it’s officially signed by both countries. ********************************************************************************************* China Bans Pork Imports from Indonesia Due to ASF China is doing everything it can to rebound from the African Swine Fever epidemic that decimated its hog herds. Chinese customs officials say they’ve banned imports of pigs, wild boars, and related products from Indonesia due to the ASF virus outbreak in the northern part of the country. A Reuters article says the deadly disease roared across China itself after first being detected in August of 2018. Some estimates say the disease reduced the world’s biggest pig herd by up to 40 percent. Beijing has recently issued a series of new measures to boost pig production, while also maintaining strict prevention and control measures designed to prevent new outbreaks of the disease. China’s General Administration of Customs says on its website that as of December 17, Indonesia had reported almost 400 cases of African Swine Fever outbreaks. As of mid-December, official reports say the virus has killed almost 30,000 pigs across a province in north Indonesia. Authorities are still trying to quarantine the area, which has suffered millions of dollars in economic losses. ********************************************************************************************** China Loosens Restrictions on Importing GMO Crops A government body in China has given its approved safety certificates to 203 new genetically modified crops for planting and import purposes. Official documents that came out Monday should pave the way for wider GMO adoption in the country. The Chinese Ministry of Agriculture and Rural Affairs shared three lists of newly approved GMO crops, including soybeans, corn, cotton, papaya, and many others. One market source told Agri Census Dot Com that, “It might be possible that China will open up domestic planting of GMO soybeans sometime soon.” China has maintained tight restrictions on using GMO crops in domestic planting in the past. However, it’s been more willing to import GMO crops in recent years, including soybeans, corn, and rapeseed. Soybeans, corn, and rapeseed that were domestically produced within China are said to be non-GMO. Two of the newly approved crops were developed in the U.S. and were licensed for import; One for soybeans and the other is papaya. The newly approved certificates will be valid between three and five years, depending on the crop. ********************************************************************************************** 2019 Squeezing Grain Elevators in Rural America CoBank says it isn’t just farmers that saw lower cash returns in 2019. Grain elevators will also see their profit margins drop compared to the previous year. The lower returns are blamed on a higher basis for corn, soybeans, and wheat. A release from CoBank’s Knowledge Exchange Division says, “In addition to having to buy a more expensive basis, grain elevators are offering farmers incentives to sell bushels, such as lower rates on storage, free delayed pricing, and free grain drying.” Lower quality and high-moisture grain coming in from wet fields around rural America also boost elevator costs. Propane shortages in 2019 also continued to put a damper on elevator revenue. As if that’s not enough, drying wet grain can lead to commodity shrinkage, which adds to lost bushels and higher costs for elevators. CoBank says those challenges from 2019 will likely carry into the new year. “Grain elevators’ margins will get squeezed in 2020 by the tightness in basis, diminishing carries in the futures markets, and many other challenges from low test-weight and high-moisture grain,” CoBank says. ********************************************************************************************** Organic Sales Doubled Over Five Years; Percentage Still Small U.S. organic sales doubled between 2012 and 2017, even though the total value of U.S. agricultural sales remained flat. The USDA says growth in the organic sector has taken off since the early 2010s as food manufacturers, retailers, and livestock producers have increased their demand for organic foods and inputs. Organic operations’ average sales were just over $400,600 in 2017, more than doubling the average sales for all farms, which came in at just over $190,000. The organic share of all agricultural sales in the U.S doubled to two percent between 2012 and 2017, but the share was over six percent in some states. California took the top spot in the nation in terms of organic and overall ag sales. Most of the other top organic producing states were in the Pacific Northwest, which is a major grower of organic produce. Other states were in the Upper Midwest, a major producer of organic milk, and the Northeast U.S., which has many smaller-scale organic farms. Pennsylvania and North Carolina had the fastest organic growth between 2012 and 2017. ********************************************************************************************** Study Shows Farmers are Paying Higher Wages Than Ever Before Farm Journal recently conducted a study that encompassed all sectors of agriculture. What they found was farmers are paying more in wages than at any point in history. They’re more efficient in using their available labor. However, they’re still frustrated. The survey of more than 2,100 farmers included almost 200 dairy farmers. Of the total producers, 87 percent say they pay more in wages than they did five years ago. While 58 percent of the employers have offered higher wages to attract labor, few can and do offer benefits. Just 20 percent of the farmers offer health insurance. Almost 45 percent offer their employees paid time off. A handful of the dairy farmers in the survey says they milk their cows with robotics. But, the majority of the dairy farmers say milking help is the hardest position to both fill and retain employees. Employers’ biggest frustrations are those who show up late, don’t show up at all, or don’t follow protocols in place. They say the best employees have a sense of ownership, which is easier to say than to find.
| Rural Advocate News | Thursday January 2, 2020 |
Washington Insider: Economic Prospects Improved In something of a shift from recent trends, Bloomberg is reporting this week that “as a new decade dawns, some, but not all, of the dark clouds hanging over the U.S. economy have cleared.” Looking back, it calls 2019 “a year on the edge” that began with a government shutdown, was dominated early by fears of recession as the trade war with China intensified into a battle “that hurt business investment and threatened the economic expansion.” Nevertheless, last year continued the country’s longest expansion on record --thanks to “nonplussed” Americans who kept on spending. The strength was fueled by job gains that unexpectedly picked up steam late in the year, bucking forecasts for a slowdown and now “downside risks have eased somewhat as the Federal Reserve lowered interest rates three times, U.S.-China tensions cooled and the UK election removed some of the Brexit uncertainty that’s haunted the global economy.” Still, Bloomberg thinks, “this outlook doesn’t necessarily mean growth will enjoy a resurgence.” Economists still expect a slowdown to about 1.8% for gross domestic product growth in 2020, which is around what most analysts see as the long-run potential rate but well short of the 3% that President Donald Trump pledged to achieve. In addition, the trade war with China is far from over, corporate debt is piling up, global growth remains sluggish and Boeing Co.’s production halt on the troubled 737 Max jet will ripple through factories, Bloomberg emphasizes and focuses on “five key trends in the U.S. economy to watch” in 2020. It notes that the job market outperformed projections at the tail end of the year, with unemployment matching a half-century low and wages picking up – particularly among the average, non-supervisory worker where gains are approaching 4%. A strong payroll gain of 266,000 in November was enough to undermine projections that things were shifting into lower gear. It also warns “that narrative” could weaken a bit with payroll revisions due in February that will make the past look less shiny. Analysts still reckon that a downshift will arrive in 2020, with average monthly job gains slipping in the third quarter as the pool of available workers shrinks further – a trend that “suggests” that this year will be the time that wage gains accelerate and finally push inflation higher. However, Bloomberg allows that even if it cools a bit, “the labor market alone is likely to continue sustaining spending on goods and services, the economy’s lifeblood, as well as in housing. It sees the real estate sector as primed for a stronger 2020 – thanks to lower interest rates – after “a dismal 2018 and yawn-inducing 2019.” Builders and consumers are optimistic, permits are rising and there’s plenty of pent-up demand. Yet supplies may continue to be thin amid constraints like restrictive zoning regulations and baby boomers staying in their homes. The report identifies the manufacturing sector as “appearing” to be emerging from its contraction that lasted two quarters in 2019 but thinks that trend is “not about to go gangbusters.” For one thing, demand may take some time to recover following the China trade truce and companies could remain wary until a more comprehensive agreement is reached. In addition, the “strong dollar will continue to weigh on exports.” With manufacturers eyeing a pullback in spending next year for the first time since 2009, their health will potentially hold back growth from being more robust. Bloomberg also argues that while the “national-level data may remain solid, states could run hot or cold.” What happens in local economies is seen as key for the 2020 presidential election, given how narrow 2016 victories were in a few swing states. That means factory-job numbers in places like Michigan, Pennsylvania and Wisconsin are likely to get outsize attention following conflicting data in 2019 — and shifting demographics along with an influx of transplants in once-reliable Republican strongholds like Texas “could make making things less predictable in other places as well.” In addition, Bloomberg says “risks lurk in the shadows of a 2020 outlook for steady growth.” Debt is one of them, it says, as former Fed officials are among those warning of dangers of a prolonged period of easy policy, which can increase investors’ appetite for riskier and higher-yielding assets. It also notes the possibility of a re-escalation in the trade war with China along with continued sluggishness in the global economy and weakness in business investment. Finally, the group thinks that wage gains could accelerate more forcefully and finally feed through to inflation, putting pressure on the Fed to raise rates. So, we will see. The economy still is seen as clearly improved in recent weeks, but key areas of uncertainty remain and should be watched closely by producers as the year with its many election-linked fights proceeds, Washington Insider believes.
| Rural Advocate News | Thursday January 2, 2020 |
Some Direct Shipments Avoid US Tariffs on China Direct shipments of goods from China to the U.S. worth $800 or less, which are exempt from current tariffs, appear to be growing, the Wall Street Journal said. The $800 threshold is known as the de minimis exemption. WSJ cited data from the U.S. Census Bureau showing an 11% increase in the value of shipments of goods worth less than $2,000 since the trade war began in July 2018, despite the value of all shipments dropping around 15% over the same period. Many consumers are purchasing the goods, which often include electronics, auto parts and clothing, directly from Chinese suppliers using marketplaces like Amazon.com. US Trade Representative (USTR) Robert Lighthizer has voiced opposition to the current threshold and attempted to have it lowered for goods from Mexico and Canada during negotiations over the US-Mexico-Canada Agreement (USMCA). He noted other countries often set much lower de minimis thresholds than the US imposes on them and argued the situation “adds to the trade deficit,” in testimony to a House panel earlier this year.
| Rural Advocate News | Thursday January 2, 2020 |
US-China Phase One Deal to Be Signed Jan. 15: Trump The phase-one U.S.-China trade deal will be signed Jan. 15 at the White House, President Donald Trump said in a tweet Tuesday (Dec. 31). Trump also confirmed that “high level representatives of China will be present” at the ceremony. Earlier reports had suggested Chinese trade officials led by Vice Premier Liu He would be in Washington through the middle of next week to sign the trade deal. Additional U.S.-China trade talks are set to begin “at a later date,” Trump said, adding he would travel to Beijing to kick off “phase two” trade deal negotiations. Provisions of the phase-one agreement include purchases of U.S. ag products by China, a promise by China to bolster intellectual property protections and new enforcement provisions, among others. The final text of the deal is still undergoing a legal scrub and is expected to be released following the signing.
| Rural Advocate News | Thursday January 2, 2020 |
Thursday Watch List Markets Weekly jobless claims will be out early on Thursday. DTN will be closely watching updates on South American weather forecasts, where Brazil has turned a bit dry in some areas. We will also be looking for any news regarding the U.S.-China trade deal. Weather Moderate to heavy rain and flooding are in store for the Delta, Mid South and Deep South Thursday. Meanwhile, light snow will cross the northern Plains and northern Midwest. Temperatures will be seasonal to above normal north and central and near normal south.
| Rural Advocate News | Tuesday December 31, 2019 |
Report says Phase One Trade Deal Signing May Happen This Weekend Reports surfaced early on Monday that the Chinese Vice Premier will lead a delegation to Washington, D.C., to sign the Phase One trade deal. A source close to the situation tells the South China Morning Post that Liu (Lou) He will fly to Washington on Saturday to sign the agreement. The source said the U.S. extended the invitation and Liu has accepted. Farm Futures reports that Beijing and Washington haven’t confirmed the trip yet. China is already buying larger amounts of U.S. agricultural products, including soybeans, which was a big part of the agreement for U.S President Donald Trump. The possibility of making the deal official this weekend will mean increased purchases by China, as well as a partial end to the trade war that’s dominated headlines for the past 18 months. China’s soybean imports from the U.S. recently hit a 20-month high at 2.6 million tons, the highest number since March of 2018, when the trade war between the world’s largest economies began to pick up steam. Reports of higher food prices in China will likely mean a need for increased imports of U.S. agricultural goods in the months ahead to bring down those prices. ********************************************************************************************** White House Adviser says Agreement with China is a Done Deal White House Trade Adviser Peter Navarro said on Monday afternoon that the Phase One trade deal with China is wrapped up. “That’s a done deal,” Navarro says. “You can put that one in the bag.” The one thing he didn’t do was confirm a report by the South China Morning Post that China’s Vice Premier will be in Washington to sign the deal this weekend. Navarro giving his affirmation to the deal with China shows that President Trump doesn’t face pressure from conservatives to negotiate more favorable terms for the U.S. Navarro’s hostility toward China and its global trade and economic practices is well known in Washington, as he published a book during his career titled “Death by China.” Under the agreement announced on December 13, the U.S. put off implementing new tariffs on Chinese imports while reducing some existing duties. China agreed to bigger purchases of American agricultural products and made new commitments on intellectual property projections and forced technology transfers. As of now, the exact terms of the agreement haven’t been announced. ********************************************************************************************** Ag Negotiator; $80 Billion in Purchases “Doable” for China The Phase One trade agreement between China and the U.S. has the two nations in “close contact” as they work toward getting the deal finally signed. U.S. Chief Ag Negotiator Gregg Doud says the agreement between the world’s two largest economies will mean big numbers of Chinese agricultural purchases of U.S. ag commodities. He tells Farm Journal that, “China’s purchase commitment is built upon a base year of $24 billion in ag purchases, which occurred in 2017. What China has agreed to do is buy an additional $32 billion over the next two years on top of that $24 billion mark.” Doud did acknowledge there are those people who say China’s potential purchase levels will be hard to reach. However, he says that it doesn’t take into account some of the new structural changes in the agreement. “China imported $124 billion in ag products last year from around the world,” he says. “What we’re asking China to do is to commit to $40 billion out of that $124 billion total.” He thinks because of the structural changes in the deal, China will be more than able to accomplish that. ********************************************************************************************* U.S. Farm Exports to Philippines Hit Record The United States has seen a lot of benefits from the Philippines’ growing demand for imported agricultural products. The USDA’s Foreign Ag Service says agricultural exports to the Philippines will reach a record of $3 billion by the end of this year as shipments continue to arrive. The U.S. currently commands 28 percent of market share in the nation, making it the largest supplier of agricultural products. Last year, the Philippines was the 11th-largest market for U.S. ag exports. The top five products included soybean meal, wheat, dairy products, pork and pork products, as well as poultry. Last year, ag exports to the Southeast Asian nation reached a record of $2.9 billion. U.S. soybean meal was the highest-value export, worth $884 million in 2018. USDA data shows that “While sales were down four percent from January to October year-on-year, Manilla officials still expect a record $3 billion as shipments picked up ahead of the holiday season.” U.S. food and beverage products alone will reach a record $1.2 billion by the end of 2019, which amounts to more than 29,000 container trucks. ********************************************************************************************** USDA Sets Requirements for Meat and Poultry Labels The U.S. Department of Agriculture released a clarification on its requirements for accuracy in labeling of meat and poultry products. An Agri-Pulse report says the Food Safety and Inspection Service says the only way beef can be labeled “grass-fed” is if they fed on grass or forage 100 percent of the time after they were weaned. Because cattle would then have to have access to pasture until slaughter, they can’t ever be put into a feedlot. Products that come from animals with less than 100 percent access to grass or forage before slaughter can’t use the term grass-fed. The only way that can happen is if the label makes it clear that at least some of the animal’s dietary needs came from grain. As an example, the report says an acceptable label could be “Made from cows that are fed 85 percent grass and 15 percent corn.” The guidance that came out late last week also says certified organic products can be labeled legally as “raised without antibiotics” or “no added hormones” with no documentation required. The farm that produced the organic livestock or poultry, as well as the processor, have to be certified organic under USDA standards. ********************************************************************************************** USB Sets Goals for 2020 United Soybean Board CEO Polly Ruhland recently announced her group’s priorities for the year ahead. 2020 goals will include improving farmer profitability by focusing in on meal, oil, and sustainability. One of the things they’re researching this year is to prove the amino acid profile, as well as how valuable it can be to livestock producers that feed soy to their animals. That’s why they’re looking further into both their meal and protein quality improvements in the soybean. Another area of focus for USB is enhancing and communicating the sustainability of soy. Improvements in technology over the years have allowed soybean farmers to grow more soybeans and use fewer acres of land to do it. They want the public to know that the sustainability of soy can help the planet and put profit into a farmer’s operation at the same time. Another 2020 objective is to focus their research on the benefits of soybean oil, more specifically in high oleic soybean oil. The objectives were highlighted this month during the United Soybean Board meeting in December.
| Rural Advocate News | Tuesday December 31, 2019 |
Washington Insider: Challenges to Trade Policy Authorities Bloomberg is reporting this week that a number of international trade cases are expected to be decided next year and could change the president's "unlimited authority" to force U.S. importers to pay steep tariffs on steel and other goods that the administration says threaten national security. While courts are largely deferential to the executive on national security, a recent case involving steel tariffs on Turkey is sending a message that the president doesn't have "carte blanche" when he uses a Cold War era law to impose tariffs, according to Clark Packard, trade policy counsel at the R Street Institute, a research organization promoting free markets. The case, brought by Transpacific Steel LLC, could have wide-ranging impacts, including undermining the administration's threats to impose auto tariffs, R. Will Planert, a partner in Morris Manning and Martin LLP's international trade practice, told Bloomberg. In addition, Ford Motor Co. is expected to make a bid for a U.S. Supreme Court review of steep tariffs on imports of Transit Connect vans in 2020, while a solar firm will fight to preserve a tariff exclusion the administration is trying to nix. Transpacific Steel's challenge focuses on so-called "double tariffs" and could shed light on how courts may limit the president's use of a basic law, Section 232 of the Trade Expansion Act, Devin Sikes, an international trade attorney at Akin Gump Strauss Hauer & Feld, said. The U.S. Court of International Trade, in denying the government's bid to toss the case last November, rejected its argument that the president can modify tariffs without following the statute's procedures. Transpacific would get a hefty tariff refund if it wins this challenge, which is expected to proceed with the steel importer's brief due Jan. 21, 2020. The company, which bought steel from Turkey for rebuilding after major hurricanes, alleges the administration flouted the law by singling out Turkey for 50% tariffs five months after the original 25% tariff was imposed. A constitutional challenge to the tariff law is set for a Jan. 10 oral argument at the U.S. Court of Appeals for the Federal Circuit, Bloomberg notes and a decision in American Institute for International Steel v. United States could follow between 90 and 120 days later. If the appeals court strikes the law down, current steel and aluminum tariffs would be eliminated -- however, a ruling upholding the law could embolden the administration to seek more tariffs. The American Institute for International Steel argues the current law violates the non-delegation doctrine by ceding lawmaking authority to the president. In Gundy v. United States, which involved a non-delegation challenge to a sex offender law, four justices in June signaled an interest in revisiting the doctrine. Justice Brett Kavanaugh, who didn't participate in Gundy, said Nov. 25 in a matter unrelated to the steel case that the court may want to reconsider the doctrine. Trade law firms are telling industry clients there could be an "avalanche" of claims if the Court of International Trade backs JSW Steel in a separate challenge to a Commerce Department tariff exclusion decision according to Adams Lee a trade lawyer with Harris Bricken. The court in JSW Steel (USA) Inc. v. United States could order Commerce to revisit its decisions and give importers who want to escape steel tariffs "new clarity," Lee said. In addition, industry challenges are appearing from several other directions, Bloomberg said. For example, the newest steel tariff challenge in Universal Steel Products Inc. v. United States questions whether the Commerce report forming the basis for the levies met the law's standards. Universal Steel and other importers joining the challenge say Commerce didn't explain the likely impact of the recommended remedies on downstream industries that manufacture products critical to national defense readiness. If the Court of International Trade agrees, it could force Commerce to re-evaluate. So, we will see. While many observers indicate hopes for a diminution in trade tensions following the expected phase one deal with China, there are indications the administration intends to continue to push forward with its "managed trade" initiatives in China and in numerous other countries. Growing industry pushbacks on this policy indicate a "political pause" during the coming election could be undertaken, but it is clear that not all administration policy advisers agree on such a policy decision -- so a significant policy fight can be expected to continue, possibly even after the approaching 2020 elections shift the government into "all politics, all the time." As always, the trade debate should be watched closely by producers as it intensifies, Washington Insider believes.
| Rural Advocate News | Tuesday December 31, 2019 |
USDA Approves First State, Tribal Hemp Plans Hemp production plans submitted by three states and four Indian tribes have been approved by USDA, the Agricultural Marketing Service (AMS) announced Dec. 27. Louisiana, New Jersey, and Ohio are the first set of state hemp production plans approved under the U.S. Domestic Hemp Production Program, AMS said, while those submitted by the Flandreau Santee Sioux, Santa Rosa Cahuilla, and La Jolla Band of Luiseno Indian tribes were also given the green light. Under the 2018 farm bill USDA was directed to develop a regulatory oversight program for hemp, including approval of hemp production plans submitted by states and Indian tribes. Currently, 17 states have submitted plans to USDA that are under review, while another eight are working on plans to submit for review.
| Rural Advocate News | Tuesday December 31, 2019 |
Report Indicates China's Liu to Arrive in US Saturday for Signing of Phase One Deal Chinese Vice Premier Lui He will lead a delegation to Washington to sign the phase one trade agreement between the U.S. and China, with the South China Morning Post reporting the delegation will arrive in Washington Saturday and be in the U.S. a "few days." President Donald Trump on Dec. 24 said he and Chinese President Xi Jinping would meet to sign the phase one deal, "but China has yet to confirm this." U.S. Trade Representative Bob Lighthizer said earlier this month that representatives from both the countries would sign the phase one trade deal agreement in the first week of January. Meanwhile, China's Ambassador to the U.S. Cui Tiankai told China state television CGTN that there is no problem for the country to live up to the commitments it has made in the phase one trade deal. "We will always implement what we promised. There is no problem with that," Cui said. "The U.S. has made commitments to the one-China policy. I just hope they will honor their commitment."
| Rural Advocate News | Tuesday December 31, 2019 |
Tuesday Watch List Markets Consumer confidence index and home price index will be out early on Tuesday. We will also be watching for CFTC's Commitment of Traders report findings on fund activity last week. Also, any confirmation of Chinese trade delegates coming to Washington for the trade deal signing will be important. Weather Snow squalls and blustery winds are in store for the northern and eastern Midwest Tuesday. Dry conditions will be in effect elsewhere for New Year's eve. Temperatures will be milder after last weekend's storm. However, heavy snow cover in the Northern Plains will have a notable chilling effect.
| Rural Advocate News | Monday December 30, 2019 |
Skepticism Remains Over China’s Ag Purchases An Associated Press report says there are still people on both sides of the Pacific Ocean who remain skeptical about the actual amount of farm goods that China committed to buy in the “Phase One” trade agreement with the U.S. Trade Representative Robert Lighthizer said the amount will total $40 billion a year. However, President Trump says the total is actually “much more than $50 billion.” Is it realistic? Even in the best of times, exports to China has never been higher than $26 billion in any year. Beijing may be locked into contracts with other suppliers like Brazil and Argentina it lined up after the trade war broke out with the U.S. Chad Hart, an Ag Economist with Iowa State University, says, “History says we’ve never been close to that level. There’s no clear path to getting us there in one year.” However, the skepticism actually works both ways. A trade specialist at the University of International Business in Beijing says the figure is $40 billion and he wonders if the U.S. can ensure the full supply of products to equal that value. At this point, farmers that talked to the AP say they’re hopeful but guarded in their expectations. Iowa farmer Jeff Jorgeson says, “At this point, we have to see more details.” ********************************************************************************************* Don’t Forget about Wheat in the Phase One Trade Deal When news broke about the Phase One trade deal between the U.S. and China, it made the soybean industry especially happy. A Bloomberg report says don’t forget about wheat, which could also be a big winner in the agreement. Speculation is rising that China will work to fill its wheat-buying quota as part of the agreement. That will likely create new demand for wheat because China has failed to live up to its wheat-purchasing promises in the past. Soybean purchases are likely to be somewhat more limited because of the African Swine Fever outbreak across the country, which will lower typical demand levels. If Chinese wheat purchases were to reach the quota mark of 9.6 million tons, that would represent a huge demand jump. In the six years prior to and up through 2017, buying has averaged less than 50 percent of that allotment. The timing could be good for U.S. farmers. Tighter corn supplies in Brazil and wheat supplies in Russia, the world’s top wheat exporter, have made American grain more competitively priced in the world market. That’s already causing Chinese importers to begin to boost their purchase levels from the U.S. ********************************************************************************************** China Changing Hog Production After AFS Outbreak The Chinese Ag Ministry says large hog farms are lining up with the smaller family-owned farms as part of a state-initiated investment worth about $7.1 billion dollars. The goal of the new initiative is to boost hog operations across the country that were hit hard by the African Swine Fever outbreak. A Reuters report says fifteen of the country’s leading pig farms signed 19 agreements with local governments in 16 Chinese cities to raise pigs together. The Ministry of Agriculture and Rural Affairs says these projects should produce over 22 million hogs for slaughter every year and will involve 33,000 poor rural families. While announcing the plan, the ministry didn’t give a specific timeline on when this would take place. Bigger farms are being encouraged to purchase a stake in or lease medium and smaller farms. They’re also being asked to make these arrangements as quickly as possible by building a number of standardized household-based farms, slaughterhouses, and refrigerating centers. China’s hog herds, once the biggest in the world, has dropped almost 40 percent since the ASF outbreak began in mid-2018. China is the world’s biggest producer and consumer of pork. ********************************************************************************************** USDA; Climate Change May Increase the Cost of Federal Crop Insurance The USDA’s Economic Research Service looked into the ways that climate change could affect the cost of the Federal Crop Insurance Program. Researchers worked with statistical models to predict crop yields from historical weather data. They used weather simulations from climate models to build scenarios showing how yields might respond to climate change. Economic models then simulated how farmers and markets might respond to changes in weather and yield. The study explored the potential impacts in the year 2080. It compared climate scenarios arising from different projections of greenhouse gas emissions levels to a hypothetical future with a climate similar to that of the past several decades. Under that scenario with moderate emissions reductions, in which farmers adapt to changes in climate with adjustments to what they plant, where they plant it, and how they manage it, the cost of today’s Federal Crop Insurance Program would average about 3.5 percent higher than under a future with a climate similar to that of the recent past. Under the scenario in which emissions trends continue, the cost of the FCIP would increase by an average of 22 percent. ********************************************************************************************** Brazil Soybeans Taking Much of U.S. Market Share in China While China has been the world’s largest importer of soybeans for some time, Brazil and the U.S. have been competing for the top spot as the world’s largest exporter to China. Back in the 1990s, the U.S. was the top soybean exporter. During the end of that decade, both the U.S. and Brazil increased their exports to answer a growing demand for soybeans in China. Brazil’s exports grew more quickly than the U.S. During the ‘90s, the U.S. supplied as much as 50 percent of China’s soybean imports, but that number gradually declined further into the 2000s. Brazil’s share first matched the U.S. total in 2002 when each country supplied about 35 percent of China’s imports. Between 2002 and 2011, each country’s share of soybean exports to China totaled between 35 and 50 percent. Brazil’s share jumped to 50 percent of all exports to China between 2012 and 2016 as the U.S. share dropped to about 40 percent. That number would drop to 30 percent in 2017 as China’s tariff on U.S. soybeans took effect later in the marketing year. During the first nine months of China’s 2018/19 marketing year, Brazil’s share of the soybean import levels rose to 77 percent, while the U.S. share was just 10 percent. ********************************************************************************************** Ten Signs of Farm Financial Stress to Watch Out For Things have been hard in agriculture and more specifically, it’s been hard to be a farmer. Wet weather, low crop prices, as well as trade disputes have put some farmers on the edge. Financial stress is taking a toll and Successful Farming has put together a list of signs that may indicate a farmer is suffering from significant financial stress. Signs include isolation or withdrawal, as well as talking in a monotone voice or lacking facial expressions, and outbursts of anger or abrasive behavior toward others, including children. After that, they list confusion, forgetfulness, and difficulty concentrating. Also on the list is blaming others such as banks or spouses, binge eating, gambling, or drinking. Sleeping too much or not enough is also on the list, as is a lack of pride in the appearance of the operation, including the buildings and grounds. Not caring for livestock is another sign to watch for, as are more farm accidents.
| Rural Advocate News | Monday December 30, 2019 |
Washington Insider: Growing Trade Policy Angst The media are increasing their focus on trade policy now and pointing out that for years America’s trade agreements have tried to break down economic barriers and remove tariffs and other impediments to cross-border commerce. However, the newly emerging deals “have turned that approach on its head” the New York Times reported last week. For example, while the phase one China deal promises to lower some of the walls Beijing has erected for foreign companies -- including opening its financial markets, streamlining imports of American agriculture and offering greater protection for intellectual property -- it leaves in place tariffs on the bulk of Chinese imports, more than $360 billion worth of goods. And it requires some $200 billion of additional purchases of U.S. products over the next two years, according to the Trump administration, but also “moves trade policy away from promoting free markets and back toward an earlier era of managed trade.” The Times notes the new NAFTA similarly contains provisions that open up markets for dairy, digital services and other industries. But its most “transformative changes” tighten the rules for North American automotive manufacturing to try to spur more production within the continent, a move some Republican lawmakers say will weigh on trade. The New York Times sees these modifications as “the product of the administration’s 'transactional trade approach,' one that aims to wield America’s economic power to force other nations to buy more American products. President Trump's 'America First' philosophy looks with suspicion upon global supply chains and free trade deals and seeks to force sprawling multinational companies to move operations to the United States in an effort to lower the trade deficit.” The Times also charges the administration has little use for the type of multilateral organizations that have tried to lift economic growth around the world by promoting free trade. Last week, the administration effectively crippled the World Trade Organization’s ability to resolve trade disputes after a sustained campaign against a critical part of the body. Doug Irwin, a trade historian at Dartmouth College, said the pacts were a substantial departure from those enacted under previous U.S. presidents -- both Republicans and Democrats. “Most trade agreements that we’ve seen in recent history are agreements to liberalize markets,” he said. In a TV interview last week, Robert Lighthizer, the administration’s top trade negotiator, acknowledged the agreements were not likely to please those who prioritized free markets. “I understand the people that believe in just protecting investors and pure market efficiency,” Lighthizer said. “They’re not going to be happy because we are making it more expensive to operate in some other areas and less expensive in the United States.” President Trump’s aggressive approach to reworking the global trading system has been praised by some parts of industry as an attempt to fix a situation they say has been disastrous for American workers. “Trump and team have what appears to be a strong deal,” Daniel DiMicco, a former steel industry executive, who leads the Coalition for a Prosperous America, said of the China trade pact. Still, many economists and trade experts fear the approach could backfire on the United States, by degrading the international trading system and raising the cost of manufacturing -- resulting in lower productivity and economic growth. In a recent analysis, Mary E. Lovely and Jeffrey J. Schott, two economists at the Peterson Institute for International Economics, projected that the provisions in the U.S.-Mexico-Canada Agreement would hurt American industry by driving up the cost of making cars and dampening growth. Analysts at Fitch Ratings said Tuesday the China deal had raised their estimates for global growth but does less to lower trade barriers than anticipated. The trade truce leaves the effective American tariff rate on Chinese products at 16%, below the 25% level that the president had threatened, but up from roughly 3% before the trade war, they said. The North American and China pacts, which together cover countries responsible for more than half of America’s trade, are the first translation of the administration’s trade ideals into policy. But they also bear U.S. Trade Representative Lighthizer’s imprint and his long history of favoring a “managed trade approach” as a Reagan administration official, the Times said. The WTO later banned agreements that seek to restrain a country’s exports. That history has direct parallels to China, where American officials have been urging the government for decades to reduce its role in the economy. Administration officials, including Lighthizer, have also criticized Beijing for using preferential policies, subsidies and central planning to give its businesses an advantage over American ones. But the trade deal announced this month appears to make little progress on those issues. Instead, its largest feature appears to be purchases that are likely to be beneficial for American businesses but may wind up further strengthening the hand of the Chinese state. So, we will see. Competitive prices for U.S. goods and increasing access to developing-country markets are fundamentally important to U.S. producers and the newer administration approaches should be watched closely by U.S. producers to determine their likely longer-term impacts on ag industries -- along with potential implication for government interventions in both the U.S. and its trading partners, Washington Insider believes.
| Rural Advocate News | Monday December 30, 2019 |
Trying To Gauge Products In US Exports To China Under Phase One Deal Not Just a US Exercise The effort of trying to determine what products are expected to be involved in the phase one deal with China is also going on within China. The China Daily reported Zhang Xinyuan, a researcher at Huatai Securities, said “increased imports from the U.S. will mainly include crude oil, semiconductors, gas, soybeans, consumer goods, automobiles, ethanol and tourism services.” From a macro perspective, the paper said that the phase-one deal will reduce downside risks to the global economy, with Ding Shuang, chief economist of Greater China and North Asia at Standard Chartered predicting 2020 “should be a year of soft but stabilizing growth for the global economy.”
| Rural Advocate News | Monday December 30, 2019 |
Xinhua: US Pecan Growers Eye Regaining Chinese Market Via Phase One Trade Deal The state-run Xinhua News Agency reported U.S. pecan growers are eager to get back into the Chinese market. In 2017, U.S. pecan in-shell exports reached more than $300 million with more than 76% going to China. The report noted U.S. growers indicate the trade battle with China has prompted a 40% decline in prices via oversupply from the loss of exports to China. Meanwhile, early this week Bloomberg reported U.S. chicken firm Sanderson Farms has kick-started exports to China after a ban on American poultry supplies was lifted last month. The company earlier this month sent its first container of chicken feet to China since the 2015 ban and is loading more this week, said Chief Executive Officer Joe Sanderson. The third-largest U.S. chicken producer expects the 35% tariffs will be removed next year, helping accelerate exports. Green Plains Ethanol expects the corn-based fuel will also be in the mix, predicting there could be one billion gallons of the product moved to China.
| Rural Advocate News | Monday December 30, 2019 |
Monday Watch List Markets As far as reports go, Monday is fairly quiet with USDA's weekly grain inspections due out at 10:00 a.m. CST. Traders will be checking the latest forecasts, including those for South America, and any comments about the pending trade agreement with China. CFTC releases its Commitments of Traders report at 2:30 p.m. CST. Weather Moderate to heavy snow and rain are in store for the Northern Plains and northern through eastern Midwest Monday, causing safety and transportation hazards and livestock stress. These conditions also will end corn harvest efforts until spring. Other areas will be drier. Temperatures will be seasonally cold north and central and warm south and southeast.
| Rural Advocate News | Friday December 27, 2019 |
Chinese Soybean Purchases Rise in November Soon after China announced a partial trade agreement with the U.S., their purchases of American soybeans in November jumped higher. November imports jumped to 5.4 million tons, which was almost 54 percent higher than last year. An Associated Press report says U.S. soybean imports into China more than doubled from the previous month’s 2.6 million tons. That number comes from AWeb.com, a news website that serves the Chinese farming industry. China cut off purchases of U.S. soybeans as the trade war with Washington, D.C., kicked into high gear. While the two countries announced the “Phase One” deal back in October, they haven’t released any specific details regarding the agreement. The AP report says U.S. officials now think the agreement could be signed as early as January. As a part of the agreement, U.S. officials say Beijing will be buying a lot more U.S. farm products. However, Chinese officials have yet to confirm how big the purchases will be. Chinese government spokespeople did confirm that importers were already placing orders in September but didn’t give out any details of those purchases. Chinese buyers use a lot of soybeans as animal feed and to crush for their cooking oil. ********************************************************************************************* First U.S. Shipment of Chicken to China Arrives in January USA Poultry and Egg Export President Jim Sumner tells Agri-Pulse that the first U.S. chicken shipment to China in a long time will enter the Asian country next month. It marks a resumption of those shipments after China lifted a ban on U.S. chicken just over a month ago. The Chinese ban was initially implemented after an avian influenza outbreak in the U.S. While that outbreak was stamped out a long time ago, China finally lifted its ban after the U.S. approved the importing of Chinese chicken, something Beijing had demanded for a long time. “The first shipment heading to China is chicken paws from Georgia that will head out from the Port of Savannah,” says Sumner. “We’re thrilled that the first shipment in years is coming from Georgia, the number one chicken producer in the nation.” The first shipment is expected to contain about 50,000 pounds of chicken paws and is the start of what should be a quick ramp-up in chicken shipments to China. The U.S. industry got Chinese approval for shipments from 172 facilities, but most of those cold storage units weren’t included. That should be rectified soon as 177 applications came in from cold storage facilities that should be approved any day now. ********************************************************************************************* USMEF Looks to Expand Pork Opportunities in Hong Kong The U.S Meat Export Federation is planning to fill the fresh pork supply shortfall in Hong Kong with U.S. chilled pork. The African Swine Fever Virus caused the number of live hogs coming into Hong Kong from China to drop by fifty percent, with the numbers running below 2,000 head per day. “This has caused a shortage of local, fresh pork, and the fresh pork product that is available is being sold at much higher prices,” says Joel Haggard, USMEF senior vice president for the Asia Pacific. He says the opportunity could benefit the U.S. industry in both the short and long term, as more Asian consumers get used to chilled pork. “The opportunity for more pork supplies has never been better,” Haggard adds. It does take a bit more time shipping to Hong Kong than it does to Japan and Korea. Also, the wet market vendors in the country will need to be taught the proper way to handle the vacuum-packaged chilled product. “The product will initially be sold in supermarket chains,” Haggard says. “More than 100 supermarkets in Hong Kong are selling U.S. chilled pork, along with some of the city’s traditional wet markets.” Haggard says this is the largest chilled pork distribution that USMEF has ever seen, calling it, “satisfying to see it finally come to fruition.” ********************************************************************************************** Farmers Union Wants Improvements to USMCA Back on December 10, Speaker of the House Nancy Pelosi announced that the White House and her chamber of Congress had reached an agreement on the U.S.-Mexico-Canada Trade Deal. While the National Farmers Union was happy to see an effort to update the old North American Free Trade Agreement, the group says that effort didn’t go far enough. They’re calling on the Senate for improvements to the deal before the final passage. “The free trade framework established by NAFTA has dominated international trade deals for 2.5 decades, to the detriment of American workers,” says NFU President Roger Johnson. “It’s contributed to the movement of rural manufacturing jobs overseas, caused our national deficit to skyrocket, lowered wages, and eroded national sovereignty.” Johnson says the deal doesn’t go far enough to specifically protect family farmers and the rural communities they live in. U.S. neighbors Canada and Mexico are the largest export markets for U.S. food and agricultural products, totaling more than $39.7 billion in 2018. A USDA report says those exports support over 325,000 jobs. Ag Secretary Sonny Perdue says the agreement is a big win for American workers, the economy, and farmers and ranchers. ********************************************************************************************** High Stakes, High Rewards Ahead for Hemp Production Many farmers across the country are spending time thinking about the potential pitfalls and the possible opportunities that hemp production can offer them. Farm Journal’s Ag Web Dot Com says many are taking the leap into hemp production. Colorado farmer Dion Oakes says, “Hemp has a very promising outlook for farmers as a rotational cash crop that can be very viable for them.” Looking ahead to the new year, only four states, including Idaho, South Dakota, Mississippi, and New Hampshire, haven’t made it legal to grow industrial hemp within their borders. U.S. Hemp Growers Association Executive Director Caren Wilcox says she expects those four states to move toward legalizing it sometime next year. Wilcox says farmers will need time to relearn how to grow the crop. She says it will be important to get advice and counsel from those farmers who have hemp growing experience. Make sure to source where your seed comes from. She says farmers have to know their state’s regulations. The other big piece of advice is to have a customer lined up before planting their first crop. ********************************************************************************************** Have Action Plan in Place in Case of ASF The National Pork Board put out an end of the year reminder about safeguarding the country’s pork farms against African Swine Fever and other Foreign Animal Diseases. U.S. pork farmers know full well that the virus is wreaking havoc on the international pork industry. While ASF isn’t in the United States at this time, the NPB says the possibility of it or another foreign animal disease means American pig farmers should be taking steps to protect the domestic pork industry. Last year, U.S. pork exports totaled 5.37 billion pounds and were valued at more than $6.3 billion. If a disease like ASF entered the country, the U.S. would lose valuable export markets for some time. NPB says anyone who works with pigs should know the signs of ASF in their animals. Those signs are high fever, decreased appetite and weakness, red and blotchy skin or skin lesions, diarrhea and vomiting, as well as coughing or difficulty breathing. To help farmers make sure they don’t miss those signs, the National Pork Board has free hard copies of Foreign Animal Disease barn posters and fact sheets available in English or Spanish. Get them free by going to the Pork Store at www.pork.org.
| Rural Advocate News | Friday December 27, 2019 |
Washington Insider: Booming Meat Market Expectations Well, the urban media are paying more than usual attention to ag matters these days, especially to the outlook for meat sales. Bloomberg notes this week that for most of the important meats – poultry, beef and pork, U.S. supplies are surging. The hog herd is the biggest it’s been since the series began in 1943, while egg and chicken production also rose in November, USDA says. Also this week reports also showed the most cattle in U.S. feedlots since 2011. The reason for this optimism is anticipation of increased export demand in China where African swine fever has devastated the hog herd, as it has elsewhere. With Beijing and Washington reaching a first-phase trade deal that includes increased purchases of ag products, U.S. livestock producers are hoping to start shipping big cargoes soon. While prices for some meat cuts have started to rise, the ample supplies have helped keep gains in check for consumers, Bloomberg says, noting that USDA expects “continued expansion next year.” Also this week, the New York Times focused on China’s food production policies and charged that it “bungled the effort to contain African swine fever, a mistake that could result in higher Chinese food costs for years and shows the limits of Beijing’s top-down approach to problems.” The magnitude of the losses is breathtaking, NYT said—claiming that it has cost the world roughly one quarter of its pigs as the “disease has spread from China, “reshaping farming and hitting the diets and pocketbooks of consumers around the globe.” Even worse, China’s “unsuccessful efforts to stop the disease may have hastened its spread—and extended its impacts, the Times said. To halt African swine fever, authorities must persuade farmers to kill infected pigs and dispose of the carcasses properly. But its “frugal incentives” and requirements that farmers jump through hoops to seek compensation from often cash-poor local governments are causing farmer reactions that “make things worse.” The Times concludes that the epidemic also “shows the limits of China’s emphasis on government-driven, top-down solutions to major problems, sometimes at the expense of the practical. It has also laid bare the struggle of a country of 1.4 billion people to feed itself,” the Times said. China has long viewed food security as tantamount to national security, and had become essentially self-reliant in pork, rice and wheat thanks to subsidies and aggressive farmland management—but this epidemic will “test that commitment to its increasingly affluent people, who more often expect meat at the dinner table,” the Times says. The disease—a highly contagious and untreatable outbreak that is not fatal to humans but can be spread by them – has now extended swiftly out of China and across nine other Asian countries, particularly Vietnam, the world’s fifth-largest pork producer which lost much of its herd this year. Before reaching China, the disease had been slowly infecting occasional farms in Russia and elsewhere in Eastern Europe. Powered by pork, China’s overall food prices last month were one-fifth higher than they were a year ago, after seven years of little change. Large purchases of pork by China are driving up live hog prices in the United States, Europe and around the globe, pushing up costs for everything from German sausages to Vietnamese pork meatballs. Beef and lamb prices have risen as families worldwide seek alternatives, so much so that overall meat prices in international commodity markets have increased nearly 20 percent in the past year. Brazil is now ramping up beef and chicken production to meet demand, partly by burning forests in the Amazon to clear land for agriculture, the Times said. The epidemic is leading to “broad and deep economic impacts at the global level,” said Boubaker Ben Belhassen, the director of trade and markets at the United Nations’ Food and Agriculture Organization in Rome. “We don’t think there’s enough pork in the world to offset China’s shortfall.” NYT also said that the “hog problem” was an important factor in Beijing’s acceptance of a partial trade deal with the U.S. last month--in part to resume imports of American food. Pork prices have climbed so high that one livestock company, Guangxi Yangxiang, printed red banners to recruit potential farmers that read, “Raise 10 sows and drive a BMW next year.” China’s leadership has focused on remaking farming to stop the spread. Using subsidies and generous credit, Beijing has pushed industrial-scale farms with safeguards like quarantine areas for new arrivals and incinerators for diseased pigs, but the Times criticized that effort as inadequate. Chinese officials have tried to be reassuring and frequently claimed the disease was under control – only to see signs of further spread. Most recently, the agriculture ministry said that it only hoped production at the end of next year would be four-fifths of normal levels – a shortfall equal to the entire pork production of the United States, the world’s second-largest pork-producing nation, the Times said. So, we will see. U.S. producers tend to recognize the threat from over responding to the outlook, but still willing to invest to expand production, observers say. This means that objective outlook data will be increasingly important in the coming months, trends producers should watch closely as new trends develop Washington Insider believes.
| Rural Advocate News | Friday December 27, 2019 |
MFP Payments Continue to Rise As of December 23, USDA’s Farm Service Agency has paid out $10.707 billion in 2019 Market Facilitation Program (MFP 2) payments to farmers under the first two installments of MFP 2 payments. The top five states for the payouts were Iowa, Illinois, Texas, Minnesota and Kansas. Signup for MFP 2 ended December 20. The watch now is on whether USDA will announce the third installment of the MFP 2 payments will be issued in early January. Sources indicate they expect the payments will be made and that the decision has already likely been made but not yet announced.
| Rural Advocate News | Friday December 27, 2019 |
Trump, Chinese Again Commenting on US-China Trade Deal The U.S. and China are in close contact relative to signing the phase-one trade agreement, Chinese Commerce Ministry spokes Gao Feng said at the regular Thursday briefing. Gao said the two sides are still going through needed procedures relative to the Phase One agreement. This comes as President Donald Trump on December 24 said the deal was "done" but was being translated. Asked if there would be a signing ceremony with Chinese President Xi Jinping, Trump told reporters, "I will be, probably, doing that. Yeah. At the right time, we will be doing a smaller ceremony. Ultimately, we will be having one. The China deal — we will be having a signing ceremony. Yes." Asked further if it would be signed by himself and Xi, Trump said, "We will probably, yes. We will sign it. When we will get together." However, Trump did not say when it would be signed, noting it will be a "quicker signing, because we want to get it done."
| Rural Advocate News | Friday December 27, 2019 |
Friday Watch List Markets USDA's weekly export sales report will be released at 7:30 a.m. CST Friday, followed by weekly energy inventories from the Energy Department at 10:00 a.m. The Friday after Christmas will likely be a day of quiet trading, but any trade news concerning China will be examined and a surprise is always possible. This week's holiday also pushes CFTC's Commitments of Traders report to Monday afternoon. Weather An intense storm system in New Mexico Friday will move to the Great Lakes during the weekend. This system will bring rain to the Southern Plains Friday, with western through north-central Plains moderate to heavy snow and south-central Plains through western Midwest rain and mixed precipitation Saturday and Sunday. Blizzard and whiteout conditions are possible along with river basin flooding. Moisture favors winter wheat, but snow and cold will stress livestock along with causing transportation and safety hazards.
| Rural Advocate News | Thursday December 26, 2019 |
Rural Mainstreet Index Rises Again The Creighton University Rural Mainstreet Index remained above growth-neutral in December. It’s the fourth-straight month that’s happened and the tenth time in the past 12 months. The index is a monthly survey of bank CEOs in rural areas of a 10-state region that depends on agriculture and/or energy. While it’s still above growth-neutral, the index did drop from 54.2 in November to 50.2 in December. A Creighton University news release says, “Federal agriculture crop support payments and somewhat higher grain prices gave a boost to the Rural Mainstreet Index.” The index shows bank CEOs, on average, expect about 12 percent of grain farmers to experience financial losses in 2020. “However, this is down from last year at this time, when bankers expected about 15 percent of their grain farmers to have a negative cash flow during 2019,” says Dr. Ernie Goss of Creighton University. For example, Jeff Bonnett is president of the Havana National Bank in Illinois, who says, “If grain prices remain where they are today, we will have a small percentage of borrowers who will struggle with their cashflow.” There was some good news as the farmland and ranchland price index soared to 52.8 from a weak 40.4 in November. ********************************************************************************************* Ag Lenders Talk Economic Conditions During DC Testimony Agricultural lenders were on Capitol Hill this week to talk to legislators about the current credit conditions in farm country. An Agri-Pulse report says the lenders appeared before the House Agricultural Subcommittee on Commodity Exchanges, Energy, and Credit. Steve Handke of the First Option Bank in Kansas, says agricultural portfolios are remaining stable but showing signs of deterioration. “Many bankers are concerned about low commodity prices and their negative impact,” he said during testimony. “While credit is plentiful, competition for loans is intense as interest rates remain near historic lows. All that is beneficial to farmers.” However, what’s not beneficial is the fact that $22.4 billion of the total farm income in 2019 came from government payments, which is not sustainable income. Shan Hanes of Heartland Tri-State Bank in Kansas told legislators that net farm income dropped an average of 85 percent in just six years. “I dare say, many of us wouldn’t survive if our paychecks were cut 85 percent,” he said during testimony. Other bankers testified that working capital levels, the difference between current assets and current liabilities, have declined sharply since 2013. A North Dakota banker says it’s the cushion against tough times that just isn’t there anymore. ********************************************************************************************** Israel is Latest Country to Chase a Trade Deal with China A close ally of President Donald Trump and his biggest economic rival are looking at a possible trade relationship in 2020. Israel is another U.S. ally that’s now looking to conclude a free-trade agreement with China as early as next year. A senior Israeli official anonymously tipped off Bloomberg because the discussions aren’t public. The two countries first began talking back in 2016. The latest round of discussions is causing other countries to closely scrutinize the potential cooperation between a U.S. ally and adversary. The U.S. is pressuring Israel to be cautious when talking about China playing a role in its economy. From a trade perspective, it’s a balancing act for Israel, who faces a “more assertive China” as the United States takes a different military posture in the Middle East. Israeli and Chinese officials met about a month ago for their seventh round of talks. The official who spoke with Bloomberg says it’s still not yet a sure thing that Israel will be able to wrap up a deal next year. A political deadlock is preventing the establishment of a new government in Jerusalem. ********************************************************************************************* U.S. Won’t Implement Steel, Aluminum Tariffs on Brazil Imports The president of Brazil, Jair (Jayr) Bolsonaro (Bowl-soh-NAH-roh) said late last week that U.S. President Trump won’t implement a new tariff on Brazilian steel and aluminum imports as threatened earlier in December. “I had a phone conversation with President Trump,” Bolsonaro said during a Facebook Live session. “He was convinced by my arguments and I decided to tell all Brazilians that our steel and aluminum won’t be hit by additional tariffs.“ A U.S. source confirmed to Reuters that the administration won’t be implementing the tariffs talked about by Trump earlier this month. Trump announced the possibility of tariffs on Brazil and Argentina during a Tweet on December 2, accusing the two countries of devaluing their currencies, a move that hurts U.S. farmers by making their agricultural commodities more expensive on the world market when compared to those from Brazil and Argentina. The U.S. had originally exempted steel and aluminum imports from Brazil and Argentina from the sweeping metal tariffs implemented in March of 2018. ********************************************************************************************** USDA Sends Livestock Dealer Trust Study to Congress The USDA sent Congress details on a study to determine whether a Dealer Statutory Trust would improve the recovery of livestock sellers in cases of dealer payment defaults. The Hagstrom Report says the study, which was required under the 2018 Farm Bill, was undertaken by the Ag Marketing Service’s Packers and Stockyards Division. “Based on its analysis of industry data, public input, and experience with the livestock industry, USDA finds it would be feasible to implement a Livestock Dealer Statutory Trust,” says the Livestock Marketing Association in a news release. “Under current law, farmers, ranchers, and livestock auctions have been devastated when livestock dealers default on payments.” They say the sellers don’t often get the livestock back that they weren’t paid for. The producers also recover little from the dealer’s bond. The USDA report analyzes 83 dealer defaults that occurred between October of 2013 and June of 2019. The LMA says, “A Dealer Statutory Trust would give unpaid livestock sellers the legal right to reclaim the animals, or if they’ve been resold, proceeds from the livestock in the unfortunate event of a livestock dealer payment default.” The report found that existing statutory trusts in other segments of agriculture have been effective in improving financial recoveries and LMA says similar results could be expected in the livestock industry. ********************************************************************************************** U.S. Hog Inventory Climbs Higher As of December first, U.S. farms contained 77.3 million hogs and pigs. That’s a three percent jump from December of last year, but down slightly from September first of this year. Those were some of the numbers released in the Quarterly Hogs and Pigs report this week, published by the National Agricultural Statistics Service. Other key findings in the report said of those 77.3 million hogs and pigs, 70.9 were market hogs while 6.46 million were kept for breeding purposes. Between September and November of this year, 35.1 million pigs were weaned across U.S. farms, which is up two percent from the same time in 2018. From September through November, U.S. hog and pig farmers weaned an average of 11 pigs per littler. U.S. producers intend to have 3.13 million sows farrow between December of this year and February of 2020. They’ll also have another 3.15 million sows farrow between March and May of next year. Iowa has the largest inventory among the states, coming in at 24.8 million head. North Carolina and Minnesota tied for second, with each having 9.2 million head of hogs in inventory.
| Rural Advocate News | Thursday December 26, 2019 |
Washington Insider: Bloomberg’s Expectations for Central Banks Well, there’s lots going on in Washington these days, but at least some of the earlier hot spots seemed to have cooled a little. For example, there are growing rumors of trade overtures from China. In the meantime, Bloomberg has published its review of what it expects the world’s central banks to do next year — it labels this year as the time central banks jumped back into the fray, cutting interest to deal with a trade slowdown and subsequent declines in manufacturing. Some, central banks, like the Federal Reserve, had made rate hikes before 2019, creating “room” to loosen policies amid weaker growth. At the same time, others, like the European Central Bank, “found themselves in a more difficult position and had to cut benchmarks further below zero, stoking resentment about subzero rates.” Looking ahead, Bloomberg says it thinks that 2020 “might be a quieter year for monetary policy—and that fiscal [policy] “may take up some of the lifting work as growth prospects are looking a little brighter.” Still, it sees the economic numbers as “mostly mixed” rather than positive. On balance, while the big guns are set to hold fire, others, especially in the emerging markets, are projected to cut interest rates again. There is a danger, Bloomberg thinks, that the current “moment of calm in the global economy is obscuring a serious challenge for the world's central banks.” Low rates for most and negative for some means “policy space is severely depleted.” At the same time, the report concludes that “we don't think the next downturn is coming in 2020—but that when it does come, central banks won't have all the answers.” With regard to the United States, Fed Chairman Jerome Powell “has left no doubt that interest rates are on prolonged hold — based on his earlier comment that the current stance “likely will remain appropriate” unless the Fed's favorable outlook for the economy sees a “material reassessment.” He spoke after policy makers kept interest rates steady in a 1.5% to 1.75% target range “following three consecutive cuts” and published forecasts showing 13 of 17 officials are projecting no change in rates through 2020. That would keep them on the sidelines during a presidential election year, Bloomberg thinks. However, the report cautions that the U.S. central bank “isn't entirely fading into the background.” Strains in money markets has pushed it to buy Treasury bills to restore ample reserves in the banking system and some investors argue it will need to broaden the scope of those purchases to short-dated coupon-bearing securities. Powell said they are not yet ready to take such a step, but “would do so if necessary.” In conclusion, Bloomberg reports that its experts see the Fed “comfortably on hold for the foreseeable future,” as policy makers are less concerned by the risks which justified their ‘insurance cuts’ in the latter half of 2019 including trade tensions, below target inflation and sluggish global growth. Bloomberg says this outlook makes the threshold high for policy adjustments in the near term, particularly for rate hikes. It also thinks that “the impetus to stand pat will increase as the U.S. election draws nearer.” The report is extensive and emphasizes the uncertainty it sees, especially in areas like the UK where major policy changes are under consideration following Boris Johnson’s decisive win in December's election that “cleared the way for his government to take the nation out of the European Union at the end of January.” For now, concern about the outlook means two of the Bank of England’s nine policy makers want to cut interest rates, the report says, and notes that all eyes will be on whether Johnson’s win, as well as Brexit developments which could change the picture. Still, Bloomberg expects the combination of looser fiscal policy and reduced Brexit uncertainty could “lift growth next year,” and that in response, “the central bank’s tone could change leading to a rate increase in fourth quarter 2020.” Bloomberg also sees the People’s Bank of China is disappointed in the results of the beginning of its “large-scale monetary easing.” And suggests that “if weakness in the economy worsens, the central bank likely will continue to release cash into the system via cuts to the reserve ratio, which has been a preferred method to shore up output this year. China is battling a form of “stagflation” now which includes consumer price gains driven beyond the target of 3% by food, amid factory price declines and could well encounter economic growth below 6%, depending significantly on whether trade conflicts continue to cool. The report runs through its quarterly review of 23 of the world’s top central banks, which together set policy for almost 90% of the global economy, and finds several of those are worth noting, along with Bloomberg’s overall assessment. It concludes that while 2020 looks like a quieter time, there are still a considerable number of potential trouble spots in a mostly mixed picture. These signals reflect significant global economic trends should be watched very closely in the weeks and months ahead, Washington Insider believes.
| Rural Advocate News | Thursday December 26, 2019 |
Doud Comments On US-China Phase One Trade Deal The phase-one U.S.-China trade deal “is done” and is currently going through a legal scrub, chief U.S. ag trade negotiator Gregg Doud said in an interview with Pro Farmer. Doud elaborated on expected U.S. ag buys by China, saying the average $40 billion in purchases over two years represents the $24 billion baseline of purchases seen in 2017 plus an additional $16 billion in purchases above that. “Now in the first year, it'll be a little less, and the second year will be a little more,” he noted. On the U.S. ag products China might purchase, Doud said “I think you're going to see a lot in demand for meat. And China's just extraordinary right now because of the African swine fever thing.” Though the phase-one U.S.-China deal does not specify China ag purchase levels beyond 2021, Doud said U.S. ag exporters will still see benefits from “structural changes that were negotiated in this deal,” including reduced sanitary and phytosanitary non-tariff trade barriers. Doud also touted the initial U.S.-Japan trade deal, saying it puts “over 90% of the ag products that we send to Japan” at tariff parity with those from competitors covered under other trade agreements. Though many rice producers were disappointed in the U.S.-Japan accord, Doud suggested a welcome development could be around the corner. “I've got a huge deal for them that I can't talk about yet here just for another few days,” he said.
| Rural Advocate News | Thursday December 26, 2019 |
USDA Announces Crop Insurance Pilot for Hemp USDA announced a pilot Multi-Peril Crop Insurance (MPCI) product for hemp producers in select counties in 21 states will be available for the 2020 crop year. USDA created the new program in partnership with the U.S. Hemp Farming Alliance and AgriLogic. Eligible producers may participate in certain counties in Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia and Wisconsin. “We are excited to offer coverage to certain hemp producers in this pilot program,” said USDA Risk Management Agency (RMA) Administrator Martin Barbre. “Since this is a pilot program, we look forward to feedback from producers on the program in the coming crop year.” MPCI coverage under the pilot program is available for hemp grown for fiber, grain or CBD, according to USDA. To be eligible for coverage, producers must meet various requirements including compliance with applicable state, tribal or federal regulations for hemp production, having at least one year of history producing the crop and having a contract for the sale of the insured hemp. Meanwhile, beginning with the 2021 crop year, hemp will be insurable under the Nursery crop insurance program and the Nursery Value Select pilot crop insurance program, USDA said.
| Rural Advocate News | Thursday December 26, 2019 |
Thursday Watch List Markets U.S. grain and livestock futures resume trading Thursday at 8:30 a.m. CST. U.S. weekly jobless claims will be out at 7:30 a.m. CST with a new U.S Drought Monitor. The U.S. Energy Department will issue weekly inventories, starting at 9:30 a.m. Note USDA's weekly export sales report will be released Friday morning, due to this week's holiday schedule. Weather Snow squalls will move across the far Northern Plains and northern Midwest Thursday, hindering late-harvest efforts. Other primary crop areas will be dry. A large storm system with rain and snow is indicated for the Southern Plains during the end of the week.
| Rural Advocate News | Tuesday December 24, 2019 |
China Can Fulfill Pledge to Purchase $40 Billion in U.S. Farm Goods China’s top agriculture consultancy said last week that it believes China can and will make good on a promise to purchase more than $40 billion in U.S. agricultural products per year. That pledge is part of a Phase One trade deal the two countries recently signed. Reuters says China will increase its agricultural purchases to anywhere between $40 and $50 billion over the next two years. The deal isn’t signed yet and that’s led to skepticism over whether China can handle purchases that large. Shanghai-based consultant group JCI released a document saying that most foreign media don’t believe China can fulfill that level of commitment. “As a Chinese consultant company on the agricultural market, JCI strongly believes that China has the ability and will fulfill its promise,” the company says. JCI estimates that China can buy approximately $41.3 billion worth of U.S. farm products every year, including around $18.7 billion worth of soybeans, which would amount to 45 million tons. The projections from JCI were based on what they say was a “careful study” of China’s import volume of U.S. farm products in the past and does assume favorable weather and pricing throughout the term of the agreement. ********************************************************************************************* China Lowering Tariffs on Goods from Around the World China announced a change in tariff rates on imported goods from around the world that will start on January first. The country will lower tariffs on global imports in a move that’s designed to give domestic consumers some support, even as a trade truce with the U.S. takes some pressure off the Chinese economy. The New York Times says the move comes less than two weeks after China and the U.S. reached a Phase One trade deal. It also helps China by showing that the country is continuing to open up its market in spite of the more than yearlong conflict with the U.S. However, China’s economy still has some question marks to deal with as it tries to recover from a slowdown brought on by the tariff conflict. The deal with the U.S. hasn’t been signed yet and that means a lot of tariffs on American imports are still in place. China is opening its market to other countries to help satisfy consumer demand. A list of 859 products will face lower tariffs in 2020. Among the goods are frozen pork, which China has to have after its pig herds were decimated by African Swine Fever. Tariffs will also fall on grocery items like avocados, orange juice, and seafood. ********************************************************************************************* Pilot Insurance Coverage Available for Hemp Growers The Risk Management Agency announced its offering a new crop insurance option for hemp growers in select counties across 21 states next year. The pilot insurance program will provide Actual Production History coverage (APH) under 508(h) Multi-Peril Crop Insurance. The offer is for eligible producers who raise the crop in certain counties throughout states like Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Michigan, Maine, Minnesota, Montana, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin. The MPCI coverage applies to hemp grown for fiber, grain, or CBD oil for the 2020 crop year. This is in addition to the Whole-Farm Revenue Protection coverage available to hemp growers that was announced earlier this year. “We are excited to offer coverage to certain hemp producers in the pilot program,” says RMA Administrator Martin Barbre. “Since it’s a pilot program, we look forward to feedback from producers in the program during the upcoming crop year.” To be eligible for the program, producers must meet several requirements, including complying with applicable state, tribal, or federal regulations for hemp production, they must have at least one year’s history of producing the crop, and they must have a contract for the sale of the insured hemp. ********************************************************************************************** NASS Looking for Survey Responses The 2019 Census of Horticultural Specialties and the 2019 Organic Survey are both underway now, with the National Ag Statistics Service looking for as many responses as possible. They’d also like producers to respond online if they can. Online responses are more user-friendly, accessible on most electronic devices, and can save time by calculating totals and automatically skipping questions that don’t apply to an individual operation. “Horticulture and organic agriculture are important segments of U.S. agriculture and our economy,” says NASS Administrator Hubert Hamer. “When producers respond to the surveys, they’re helping associations, businesses, and policymakers advocate for their industry, influence program decisions, and educate others about the importance of these agriculture segments.” The Census of Horticultural Specialties is conducted once every five years to give a comprehensive picture of U.S. horticulture. The deadline for responding is February fifth of 2020. The Organic Survey asks more than 22,000 U.S. producers involved in certified or transitioning to organic farming questions about 2019 production, marketing practices, income, and expenses. The deadline to return the questionnaire or answer online questions is January tenth, 2020. ********************************************************************************************** “Beef. It’s What’s for Dinner” Campaign Reaches Over One Billion Consumers The “Beef. It’s What’s For Dinner” campaign relaunched two years ago. Over that time, the campaign has reached more than one billion consumers with informative digital marketing and social media content. The campaign was developed by the National Cattlemen’s Beef Association and funded by the Beef Checkoff. The campaign is designed to encourage families to make more meals with nutritious and delicious beef, as well as to connect consumers with stories of the farmers and ranchers who raise real beef. The “Beef. It’s What’s For Dinner” brand is reaching consumers more frequently and effectively than it ever has. Market research shows people who are aware of “Beef. It’s What’s For Dinner,” are more likely to eat beef, do so more often, and they feel good about buying and preparing beef for their families. Laurie Munns is a cattle rancher from Utah and NCBA Federation Division Chair. She says, “For a brand to have a reach of more than one billion people in today’s crowded marketing environment is a major milestone. It’s clear that consumers want more information about beef, it’s nutrition profile, and the hardworking farmers and ranchers who raise the beef they eat.” The NCBA first introduced the “Beef. It’s What’s For Dinner” campaign 25 years ago. ********************************************************************************************** EPA, Justice Department Want Glyphosate Ruling Reversed The U.S. government jumped into a California court case that found glyphosate, the active ingredient in Roundup, causes cancer. The Environmental Protection Agency filed a friend of the court brief last week that said it reviewed and approved the label on the weed-killing product and that a jury finding based on California law should be reversed. Even the Department of Justice joined the EPA in weighing in on the ruling in the long-running court battle over Roundup. Over the summer, the judge in the case cut the jury award to $25 million in the case of a man who claimed his non-Hodgkin’s lymphoma was caused by years of Roundup use. However, the judge didn’t reverse the jury finding in the case, saying in his opinion that Roundup was defective because the label didn’t include a cancer warning. Back in May, the EPA issued a statement saying it “continues to find no risks associated with glyphosate if it’s used following the current label and that glyphosate is not a carcinogen.” Bayer, which acquired Monsanto, the company that originally produced Roundup, was optimistic after the latest legal turn in the case, saying the company is encouraged after the U.S. government and other parties opted to support the company’s appeal.
| Rural Advocate News | Tuesday December 24, 2019 |
Tuesday Watch List Markets There are no official reports scheduled for Tuesday, Christmas Eve and federal employees have been given the day off. Most U.S. grain futures close at 12:05 p.m. CST and livestock futures finish 10 minutes later. Traders will also remain interested in any trade details with China that may emerge over the holiday. U.S. grain and livestock futures resume trading Thursday at 8:30 a.m. CST. Weather Rain and high-elevation snow during Tuesday from northern California through the western portion of the Pacific Northwest. Snow and rain through the central and southern Rockies mountain region. Mainly dry elsewhere in the key U.S. crop and livestock areas. Favorable conditions for any late fieldwork and for travel during Christmas Eve, outside of the western U.S. In South America the key growing areas of southern Brazil, central and southern Argentina will be dry and hot Tuesday. Somewhat stressful for developing corn and soybeans, especially in Argentina.
| Rural Advocate News | Monday December 23, 2019 |
USMCA Senate Prospects, Markup January 7, 2020 Following a landslide vote to pass the U.S.-Mexico-Canada Agreement in the House last week, the trade deal heads to the Senate. A vote, expected in January, could come early in the month, pending how the impeachment articles are handled. House Speaker Nancy Pelosi last week elected to hang on the impeachment documents, rather than send them off immediately to the Senate. Pending on how long she chooses to hold them, the action could clear a window for the Senate to consider USMCA. Senate Finance Chair Chuck Grassley Friday announced his committee intends to hold a markup hearing on January 7, 2020, based on the expectation that the Senate will have received the legislation beforehand from the House of Representatives. Grassley says, “This markup will move us closer to ratifying USMCA in early 2020. Senate leadership expects they could quickly consider and pass the agreement within a couple of days. However, if the Senate must start the year with impeachment trials, then a vote will come near the end of January, following the hearings. ************************************************************************************* USCA Disappointed in Lack of COOL in USMCA The U.S. Cattlemen’s Association expressed disappointment last week because country of origin labeling was not included in the U.S.-Mexico-Canada Agreement. The group penned a letter to President Donald Trump following House passage of the USMCA implementing legislation. Leo McDonnell, USCA Director Emeritus, writes, “This administration promised to "Make America Great Again," but it is becoming evident this does not include U.S. ranchers." He calls the lack of COOL in USMCA "disheartening at best." The letter presented years of data, dating back to 1988, as evidence of unfair trade in the beef sector by Canada and Mexico, in making a case for the necessity of COOL. However, COOL, which is illegal by World Trade Organization standards, was in place, but repealed by the U.S. Congress after Canada and Mexico planned trade retaliations. McDonnell concludes, "I appreciate that USMCA may be too far along to address some of these measures, but I feel it is important that, at the minimum, the record needs to be set straight.” ************************************************************************************* Ernst Will Call for Wheeler Resignation if RFS Doesn’t Reach 15 Billion Gallons Republican Senator Joni Ernst of Iowa says she will call for Environmental Protection Agency Administrator Andrew Wheeler’s resignation, if the Renewable Fuel Standard doesn’t meet the statute requirement of 15 billion gallons. Her comments follow Wheeler’s final supplement rule released by his agency last week. In a joint statement with Iowa Republican Senator Chuck Grassley, Ernst says, “We will keep holding EPA’s feet to the fire to ensure they truly uphold the RFS as intended.” Ernst alleges that the industry was “guaranteed a deal” earlier in the year that would appease biofuels producers. The agreement would account for all lost gallons to small refinery exemptions. However, the industry says EPA’s plan to reallocate exempted gallons based on a three-year rolling average won’t make up for the four billion lost gallons. The agreement that the Iowa Senators say made earlier in the year would have based the three year average on actual gallons waived. ************************************************************************************ Iowa Ag Secretary: RVO Ruling Hurts Rural America Iowa Secretary of Agriculture Mike Naig (Nayg) says the Environmental Protection Agency’s final rule regarding Renewable Fuel Standard volumes for 2020 “creates unnecessary uncertainty in our markets,” and is “detrimental to so many across rural America.” The EPA proposal did not follow a request from the biofuels industry. Naig calls the rule flawed, adding, "We must continue to work together to hold the EPA accountable for ensuring the 15 billion gallons mandated by the Renewable Fuel Standard are met." He made additional calls to invest in biofuels infrastructure. The Iowa Department of Agriculture and Land Stewardship administers the Iowa Renewable Fuel Infrastructure program, which offers cost-share grants to help fuel retailers install infrastructure to increase the availability of ethanol and biodiesel. Secretary Naig has requested $3 million in the fiscal year 2021 to continue supporting the program. To date, the program has distributed or obligated over $33 million, with $200 million added in private economic activity. ************************************************************************************* Seven Sue USDA Over Pork Processing Revisions Seven organizations last week jointly filed a lawsuit against the Department of Agriculture over its decision to reduce oversight at pig slaughterhouses and eliminate limits on slaughter speeds. The groups claim the changes ”expose pigs to greater suffering,” and defy federal slaughter, meat inspection, and environmental protection laws. The lawsuit was filed in the U.S. District Court for the Western District of New York on behalf of Farm Sanctuary, Animal Equality, the Animal Legal Defense Fund, the Center for Biological Diversity, Compassion Over Killing, Mercy For Animals, and North Carolina Farmed Animal Save. In a statement, a spokesperson from the law firm filing the suit says the revised regulation “reads like a joint venture between big business and the federal government.” The lawsuit challenges USDA's revocation of limits on the number of pigs that can be slaughtered per hour. The lawsuit also challenges USDA's decision to remove and relocate federal inspectors in slaughterhouses. ************************************************************************************* Broadband Map Fix Will Reveal Needs The House of Representatives passed legislation last week that will improve the accuracy of broadband coverage maps to better identify needs. The Broadband Deployment Accuracy and Technological Availability Act requires broadband providers to report more specific data to create a significantly more accurate and granular National Broadband Map. With more precise data, federal agencies can target funding to areas that need it most. American Farm Bureau Federation President Zippy Duvall says, “it’s critical” to do so, adding “broadband is a necessity.” Current broadband coverage maps are inadequate, according to AFBF, because they rely on census block data to determine which areas are covered. Census blocks "are too large in rural and remote locations to accurately determine need." In addition to creating more accurate maps, the bill requires the FCC to establish an audit process that ensures internet service providers are providing accurate data used to create the maps. It also would create a user-friendly process to challenge the data.
| Rural Advocate News | Monday December 23, 2019 |
Washington Insider: Brazilian Metal Tariffs Lifted Amid all the chaos and anger in Washington these days, the New York Times reported on Sunday that President Jair Bolsonaro of Brazil said “Mr. Trump decided not to pursue tariffs on Brazilian steel after a phone call on Friday.” The Times said the development represented a decision to “back off a threat made this month to impose tariffs on Brazilian metal,” a move that would have broken a previous agreement with the country and risked reigniting trade tensions. The news came in a somewhat unusual way — NYT said that President Bolsonaro “wrote in a post on Facebook Friday that he had spoken with Mr. Trump who decided not to make good on his plan to impose tariffs on our steel/aluminum. Our commercial relations and friendship are getting stronger every day,” he added. President Trump appeared to confirm Friday night that he would not be pursuing tariffs, writing on Twitter that he had just had a “great call” with Bolsonaro. “We discussed many subjects including Trade. The relationship between the United States and Brazil has never been Stronger!” he said. President Trump has routinely threatened—and imposed— tariffs to punish trading partners over practices he has deemed unfair to the United States, NYT said. On Dec. 2, President Trump tweeted that he would impose metal tariffs on Brazil and Argentina, accusing the countries of weakening their currencies and hurting American farmers. “Therefore, effective immediately, I will restore the tariffs on all steel & aluminum that is shipped into the US from those countries,” President Trump said. The tariffs have not gone into effect. Last week Larry Kudlow, the president’s economic adviser, told The Wall Street Journal CEO Council meeting that the Trump administration might not proceed with the tariffs. “No decisions have been made,” Kudlow said. The Dec. 2 announcement appeared to surprise Bolsonaro, a populist president who had gone to great lengths to strengthen personal ties with Trump. “Aluminum?” Bolsonaro asked when reporters presented him with President Trump’s tweet. “If that’s the case, I’ll call Trump. I have an open channel with him.” That same day, Brazilian authorities started calling the White House, the Commerce Department and the Treasury Department, as well as some lawmakers, to argue that Brazil does not manipulate its exchange rate. The Brazil Steel Institute said in a statement at the time that it was shocked by the announcement and warned that the decision would hurt the American steel industry which needs semi-finished products exported by Brazil to operate its mills. It is unclear if Trump has also backed off his threat to impose metal tariffs on Argentina, the Times said. The United States had initially exempted Brazil and Argentina from the tariffs placed on global steel and aluminum in March 2018, as the countries continued to negotiate over trade terms. In May 2018, the United States announced that it had reached an agreement with both countries that would cap their metal shipments at a specific volume each year. Trump and his advisers have lamented the negative effects of a strong dollar which makes American goods more expensive to purchase overseas. Administration officials have accused a wide range of governments of manipulating their currencies, including China and the European Union. The Treasury Department, which issues an official determination on which countries are currency manipulators, has not placed that label on Brazil or Argentina and neither country is on its list of nations that warrant monitoring. The most recent report, which was due in October, has yet to be released. Administration officials have not clarified when it will be published or the reason for the delay. Economists say that the value of the Brazilian and Argentine currencies have recently fallen, but that the countries are not intentionally devaluing them, despite what President Trump said. Instead, the two governments have actually been selling foreign currency and buying their own money to try to prop up its value. Still, the falling value of both currencies has made Brazilian and Argentine products cheaper to purchase abroad — especially in China, where the president had been waging a protracted trade war. As China imposed tariffs on American farm goods like soybeans and halted purchases in retaliation for President Trump’s tariffs, Beijing switched to buying Brazilian and Argentine products instead. That hurt American farmers and rankled Trump. Those tensions have now eased after the announcement last week that China and the United States had reached a Phase 1 trade deal, in which China has committed to buying large amounts of American farm goods. Brazilian officials have already made some trade concessions to the United States, including improving the terms of trade for wheat and ethanol. Brazil has also agreed to forgo a special status for developing countries at the World Trade Organization, dropped visa requirements for visitors from the United States and granted permission for United States companies to launch satellites from a Brazilian base. Carlos E. Abijaodi, director of industrial development at Brazil’s National Confederation of Industry, said he believed tariffs would not be imposed and that the threat mainly served as a signal to administration supporters in the upcoming election. So, we will see. This trade decision, if it holds, likely will be welcomed by U.S. farm equipment manufacturers and others. Clearly, decisions that support free-market relationships are important to producers and should be watched closely as political fights multiply, Washington Insider believes.
| Rural Advocate News | Monday December 23, 2019 |
EPA Releases More SRE Data The Environmental Protection Agency (EPA) released refreshed data on Small Refinery Exemptions (SREs), showing 16 waiver petitions had been filed for the 2019 compliance year as of Nov. 21. The 2019 SRE total is up six from the agency’s previous report. So far, all 16 petitions remain pending and there are no petitions pending for any earlier compliance years. For 2018, EPA granted 31 of 42 SRE petitions it received, while in 2017 it granted the largest number ever at 35 of the 37 total petitions it received. Biofuel proponents remain focused on EPA’s granting of SREs and whether it follows through on a promise to accurately account for exempted volumes when setting renewable volume obligations (RVOs) in coming compliance years. Many biofuel groups voiced concern last week after EPA released its final rule for 2020 biofuel and 2021 biodiesel RVOs. EPA’s rule retained language relying on Department of Energy (DOE) SRE recommendations when accounting for the waivers. In the past the agency has not always followed DOE’s suggestions, particularly in situations calling for only partial exemptions. While the agency said it is “committed to following the DOE recommendations” going forward, many biofuel proponents remain skeptical.
| Rural Advocate News | Monday December 23, 2019 |
Trump, Xi Speak by Phone on U.S.-China Trade Deal President Donald Trump and Chinese President Xi Jinping spoke by telephone Friday about the phase-one U.S.-China trade deal, with Trump describing the exchange as “a very good talk,” in a tweet following the call. Trump said China “has already started large scale purchases of agricultural product & more,” and added a formal signing of the phase-one trade deal is “being arranged.” Late last week, Treasury Secretary Steven Mnuchin indicated the signing will take place in early January. For his part, Xi also spoke positively after speaking with Trump, saying the trade deal would benefit both countries and help advance the world economy, Chinese state-run media outlet Xinhua reported. At the same time, Xi warned that China has “serious concerns” about what it views as U.S. interference in Taiwan, Hong Kong, Xinjiang and Tibet.
| Rural Advocate News | Monday December 23, 2019 |
Monday Watch List Markets Monday before Christmas will have more reports than usual, starting with U.S. new home sales at 9 a.m. CST and grain export inspections at 10 a.m. At 2 p.m. CST, USDA will release a monthly cold storage report and quarterly Hogs and Pigs report. Any news on trade with China will also get attention. Weather Dry and mild conditions will cover all major crop areas Monday. Precipitation will be confined to the northwestern and southeastern U.S. Southern Plains areas have moisture indicated at the end of the week.
| Rural Advocate News | Friday December 20, 2019 |
House Passes U.S.-Mexico-Canada Agreement Implementing Legislation Agriculture groups are calling on the Senate to “finish the job” and pass the U.S.-Mexico-Canada Agreement following approval in the House of Representatives Thursday. The U.S. House overwhelmingly passed implementing legislation for USMCA, sending the trade agreement to the Senate. The vote came following a delay of more than a year to make changes and reach an agreement between House Democrats and the Trump administration. Representative Richard Neal, who led the House efforts to modify the agreement, says the transformed trade deal approved Thursday “closes important loopholes and enables the United States to ensure our trading partners live up to their commitments.” Senate leader Mitch McConnell last week stated the Senate would not consider approving the agreement until after the Senate completes an impeachment trial in January. Members of the National Corn Growers Association were in Washington this week, urging the Senate to quickly consider and pass the trade agreement in the new year. ************************************************************************************* House, Senate, Pass Ag Spending Package The House and Senate this week came together in passage of spending bills for fiscal year 2020. Senate Appropriations Committee Chairman Richard Shelby, an Alabama Republican, says, "bipartisan cooperation has made this possible.” The spending package for agriculture includes $23.5 billion in discretionary funding, $451 million above fiscal year 2019 enacted levels. It also includes $1.5 billion in disaster funding for farmers and ranchers that was set to expire at the end of this year. Additionally, the bill includes $550 million for the rural broadband ReConnect Pilot program, along with fulling funding the Farmer and Rancher Stress Assistance Network, and reinstating the expired biodiesel tax credit retroactively through 2022. As farm groups welcomed the spending package, the National Milk Producers Federation applauded the legislation for including direction on dairy imitating products using labels containing dairy terms. The Food and Drug Administration provisions include language reaffirming bipartisan congressional concern with mislabeled imitation dairy products, directing FDA to enforce its own rules on labeling. ************************************************************************************* EPA Maintains SRE Supplemental Rule as Proposed The Environmental Protection Agency Thursday finalized renewable volumes under the Renewable Fuel Standard for 2020. Through the action, EPA says it has “fulfilled yet another key promise" to farmers, however, corn and biofuel producers disagree. The EPA did not make changes to the proposal, as requested by the biofuels industry. The final rule will use a three-year rolling average of recommended small refinery exemptions by the Department of Energy to account for waived gallons. Farm groups told the EPA during the comment period to account for the actual number of waived gallons, rather than the DOE recommendations. The EPA says conventional biofuel volumes, primarily met by corn ethanol, will be maintained at the 15 billion gallon target set by Congress for 2020. Cellulosic biofuel volumes for 2020, and thus advanced biofuel volumes, will increase by almost 170 million gallons over the 2019 standard. Biomass-based diesel volumes for 2021 will be equivalent to the standard for 2020, and total RVO gallons for 2020 is 20.09 billion gallons. ************************************************************************************* Corn, Biofuels Groups, Disappointed in EPA Decision Corn and biofuels groups expressed disappointment in the Environmental Protection Agency’s decision to finalize a rule relating to small refinery exemptions under the Renewable Fuel Standard. The final rule uses a three-year average of the Department of Energy recommended waivers as an estimate for 2020 waivers rather than an average of actual gallons waived by the EPA, as requested by biofuel supporters. The National Farmers Union says President Donald Trump broke a promise to farmers. The Trump administration in October promised to fully account for waived volumes due to small refinery waivers. NFU’s Rob Larew says, “farmers are sick and tired of this biofuels bait and switch.” Growth Energy CEO Emily Skor says more action is needed on the proposal to restore growth under the RFS, adding “this rule leaves important work unfinished.” National Corn Growers Association President Kevin Ross says the final rule “falls short of adequately addressing the demand destruction caused by EPA’s abuse of RFS refinery waivers.” ************************************************************************************* EPA Approves Hemp Pesticides, Proposes Atrazine Reregistration The Environmental Protection Agency Thursday approved ten pesticides for use on hemp crops for use during the 2020 growing season. The much-needed action allows hemp growers to protect their crops with approved products. Kentucky Agriculture Commissioner Ryan Quarles says the action “is a step in the right direction” for hemp growers, adding “it is important our growers have new technologies and tools to better help protect their crops and increase their yields.” While EPA oversees pesticide registrations for hemp, other federal agencies are working to streamline their separate regulatory implementation processes for the newly legalized crop. The agency also advanced the reregistration of atrazine, a widely used product for weed control. Missouri Corn Growers Association CEO and Triazine Network Chair Gary Marshall says, "We appreciate" the proposal, adding atrazine is "tremendously important to farmers across the country.” The agency is proposing a reduction to the maximum application rate for atrazine used on residential turf, and other updates to the label requirements, including mandatory spray drift control measures. ************************************************************************************* USDA, USTR, Seek Trade Advisory Committee Applications The U.S. Department of Agriculture and the Office of the United States Trade Representative are accepting applications for new members to serve on seven agricultural trade advisory committees. Members of the Agricultural Policy Advisory Committee advise USDA and USTR on operating existing U.S. trade agreements, on negotiating new agreements, and on other trade policy matters. Members of six Agricultural Technical Advisory Committees provide technical advice and guidance on international trade issues that affect both domestic and foreign production in specific commodity sectors. The committees focus on trade for Animals and animal products, Fruits and vegetables, grains, processed foods and sweeteners, along with a committee on tobacco, cotton and peanuts. To be considered for candidacy, applicants must have significant expertise in both agriculture and international trade matters. The committees hold frequent conference calls and generally meet in Washington, D.C., twice a year. Committee members serve four-year terms. Application instructions are available at fas.usda.gov. Applications must be received by 5 p.m. ET on January 31, 2020.
| Rural Advocate News | Friday December 20, 2019 |
Washington Insider: Trade War Costs While nearly everybody is happy to see reduced tensions between the U.S. and China over trade, new questions are being raised by many in the media regarding what the current deal means and what are the longer-term costs of the recent battle. The administration claims that the current deal “promises” to double U.S. exports to China and sees a “two-year spending spree on everything from airplanes to pork chops and chicken feet.” Still, Bloomberg argues that the “inescapable reality” is that even this extraordinary splurge – if it happens – may not make up the economic cost of the trade war it seeks to defuse. Not surprisingly, the report says what everybody knows – that “the precise toll of an economic conflict that is far from over is difficult to isolate.” Currently, however, economists are busily calculating the impact of the fight and notes that most U.S. tariffs will remain in place. These, along with China’s retaliatory measures, along with the impact of the resulting uncertainty – range from 0.3% to 0.7% of real gross domestic product this year alone. But even with the phase-one trade deal, many economists expect the “tariff drag” to extend for years and to continue to “stymie business investment” and to take a toll on future growth. While a few tenths of a percentage point may not seem like much, it’s consequential in the world’s biggest economy. In 2019 dollars, Bloomberg estimates the cost in lost U.S. GDP has reached $134 billion to date and will rise to a total of $316 billion by the end of 2020. Bloomberg also cites a study by researchers at the New York Fed and Princeton and Columbia universities who estimated the cost to consumers of the tariffs that will remain in place at $831 per household per year – with “an annual cost of more than $106 billion for the U.S. economy as a whole.” That alone could more than wipe out the gains from the Chinese buying surge the administration says has been negotiated, Bloomberg says. The report says that the costs are also “not one-time” and are likely to build up for years “even as businesses get used to the tariffs, or to adjusted supply chains.” For example, the International Monetary Fund’s estimates are that the U.S. tariffs will subtract from real GDP in every year to 2023, when real GDP will be 0.5% lower than it would have been had the duties not been imposed. The administration and its supporters argue they are “in a bigger fight to address longstanding American complaints regarding Chinese investment policies” and that the current agreements “will be to the long-term benefit of U.S. businesses and workers,” but that has been a difficult argument to make on the basis of the Phase One deal, critics say. The administration also points to a U.S. economy growing faster than its peers and continuing to generate jobs as vindication of its trade policies, and expect today’s report to confirm the U.S. economy grew at a 2.1% annualized rate – or perhaps better – in the third quarter. Larry Kudlow, the head of the administration’s National Economic Council, this week said he expected the combination of the deal with China and the imminent Congressional passage of an update of the North American Free Trade Agreement will mean an addition of 0.5% to U.S. growth – but didn’t release any details regarding the White House analysis. A challenge facing critics of Trump’s trade policies is the fact that the economic effects of recent trade fights have been largely countered by strong national-level data and a robust economy, driven by domestic consumption that largely offsets negative trade impacts on the manufacturing and farm sectors, Bloomberg says. Still, the negative effects are real, argues economist Mark Zandi, chief economist at Moody’s Analytics and others. From the third quarter of 2018 to the same quarter this year – the period in which the trade war really started to bite – Zandi calculates the U.S. lost 0.4% of real GDP to various trade measure impacts, or $88 billion. It also lost 340,000 jobs to the trade wars, he contends, via a mix of stalled investment and higher costs due to new import duties. The uncertainty affecting business decisions isn’t evaporating, Zandi thinks, and “that will continue to weigh on business investment, hiring and wage growth and will have continued negative consequences for the economy.” So, we will see. Skeptics of the administration trade objectives have been increasingly vocal recently, across most economic sectors. These intense debates likely will continue and should be watched closely by producers as they evolve, Washington Insider believes
| Rural Advocate News | Friday December 20, 2019 |
China, US Details on Phase-One Deal Not Coming Just Yet China is signaling the details of the phase-one trade agreement with the U.S. will not be made public until the deal is signed, according to Ministry of Commerce spokesman Gao Feng. The two sides are in close communication, but said there was no specific information he could provide on the deal. "After the official signing of the deal, the content of the agreement will be made public," Gao said. Sen. Chuck Grassley, R-Iowa, echoed the situation, saying he has only had “very general conversations” with U.S. Trade Representative Robert Lighthizer on the specifics of the phase-one deal with China. “The reason why he would not want to be very specific to us is these texts are still being translated and we have got to know that they say what was agreed to before we talk,” Grassley told reporters on Wednesday. He said the only detail on the benefit for agriculture is the U.S. claim that China has agreed to purchase between $40 billion and $50 billion worth of U.S. farm goods next year.
| Rural Advocate News | Friday December 20, 2019 |
EPA Releases Final 2020 Biofuel, 2021 Biodiesel Plan EPA has released their final rule for the 2020 biofuel and 2021 biodiesel levels under the Renewable Fuel Standard (RFS), but biofuel backers remain unhappy with the result. In a release accompanying the final rule which is yet to be published in the Federal Register, EPA said they were “committed to ensuring a net of 15 billion gallons of conventional biofuel is blended in 2020.” EPA stated that by “By proposing effectively 15.8 billion gallons for 2020 we will ensure meeting our target of 15 billion gallons.” However, the 172-page final rule from EPA does not mention the 15.8 billion gallon figured referenced in the release, a figure apparently generated by the percentage standards the agency will set for the various biofuels for 2020. EPA’s final rule will adopt the plan to account for small refinery waivers (SREs) that they proposed in October, “based on a three-year average of the relief recommended by the Department of Energy (DOE) for 2016–2018. In this action, we are finalizing these proposed changes.” Sen. Chuck Grassley, R-Iowa, expressed disappointment on Twitter, saying he will keep EPA Administrator Andrew Wheeler’s “feet to the fire” to make sure the 15 billion gallons for conventional (primarily corn-based) ethanol is blended.
| Rural Advocate News | Friday December 20, 2019 |
Friday Watch List Markets On Friday, the U.S. Commerce Department releases its latest estimate of U.S. GDP in the third quarter at 7:30 a.m. CST. USDA's cattle on-feed report for December 1 is due out at 2 p.m. CST with on-feed inventory expected up 1.9% from a year ago. Traders will be watching for news on any last minute Congressional bills or trade agreement developments with China. Weather Another dry day is in store across the primary crop areas Friday. Temperatures will continue to show a warming trend going into the weekend. This combination favors livestock and transportation along with offering some late harvest progress.
| Rural Advocate News | Thursday December 19, 2019 |
Republicans, Democrats Battle to Claim Credit for Final Version of USMCA While the U.S-Mexico-Canada Trade Agreement is set for a vote in the House on Thursday, Republicans and Democrats both claimed credit for the final version of the pact on Wednesday. Agri-Pulse says Republican lawmakers piled their praise upon President Trump for demanding that the North American Free Trade Agreement be renegotiated. However, Democrats say the changes they demanded were what made the agreement work. During the early days of negotiations, Democrats said they wouldn’t support the agreement unless it discouraged U.S. companies from relocating to Mexico. “The Trump Administration’s initial agreement fell short, but House Democrats fought hard for greater accountability in the final draft,” says California Representative Linda Sanchez. Republican Kevin Brady of Texas says, “President Trump and Ambassador Lighthizer delivered on their promise for a pro-growth and modern trade pact. We now have a trade deal that will deliver historic wins for our economy.” Democrats say the new measures in the USMCA will allow for unions nationwide in Mexico and will eventually push wages higher within that country. Republicans point out that it’s been over a year since the new agreement was signed, saying Democrats’ obsession with impeachment has kept a vital agreement from getting approved. ********************************************************************************************* China Appears Set to Buy U.S. Ethanol Some details are starting to emerge on how China would increase imports from the U.S. by as much as $200 billion over the next two years. That would meet its commitments under the phase one trade deal announced last week. Bloomberg says the still-unsigned deal includes Chinese purchase levels of $40 to $50 billion in U.S. ag commodities, a level which many experts think isn’t reachable. To help get closer to that figure, sources close to the matter tell Bloomberg that Beijing plans to restart purchases of ethanol by lifting or waiving trade war tariffs on the fuel. China is also considering taking U.S. trade from Hong Kong into its mainland ports, which would enable about $10 billion a year in U.S. goods to go directly to the mainland, which would boost the tally. The U.S. doesn’t count the shipments that go through Hong Kong as a part of its trade with China. China will also grant more regular waivers on retaliatory tariffs to local buyers of U.S. farm products like soybeans and pork. Back in November, China had lifted its ban on U.S. poultry shipments as a part of trade negotiations. U.S. officials estimate poultry exports will top $1 billion a year. ********************************************************************************************* ASF Makes First Appearance in Indonesia; Growing Outbreak in Poland The African Swine Fever virus continues its relentless march across Asia. Indonesia’s Minister of Agriculture confirms the country’s first outbreak of the virus in the far northwest part of the multi-island nation. The confirmation came on December 12 and wasn’t unexpected as increasing reports of pig deaths have come from that area, as well as several others, since late September. The United Nation’s Food and Agriculture Organization is working with Indonesia’s director-general of Livestock and Animal Health Services. The nation’s animal health director asked the FAO to provide guidance on containment and control measures for the virus. Indonesia joins an unfortunate list of Asian countries with ASF outbreaks. In a different part of the world, a pocket of the African Swine Fever virus in Poland is continuing to grow near the border with Germany throughout the past month. Even though the outbreak is 30 miles from Germany, which is the European Union’s top pork producer, the European Commission has extended Poland’s ASF control zone to the German border. For German hog producers, the increasing number of positive ASF reports is very bad news. Some German producers and officials are asking Poland to construct a border-type wall to keep infected wild pigs from entering into Germany. ********************************************************************************************** Farm Groups Want Crop Insurance Protected in Fiscal 2021 Budget The Crop Insurance Coalition is asking Ag Secretary Sonny Perdue and the Office of Management and Budget to oppose crop insurance cuts as the Trump Administration develops its fiscal year 2021 budget. The Hagstrom Report says the coalition sent a letter to President Trump and OMB Acting Director Russel Vought (Vote), saying, “For good reason, the state of the agricultural economy has been the subject of numerous hearings, reports, and media coverage. Cash crop receipts have dropped more than $34 billion since 2012.” They point out that despite a recent bump in net farm income this year, net farm income is still down $44 billion from 2013 in inflation-adjusted dollars. Multiple hardships have taken a big toll on farm families all over the country, with farm bankruptcies up 24 percent from last year. “Given the state of the ag economy,” the coalition writes, “now is not the time to make cuts to crop insurance, a program that farmers have described over and over as a linchpin of the farm safety net.” It provides predictable, on-budget assistance to farmers in a way that helps lenders continue to support American farmers and ranchers. The Crop Insurance Coalition Is made up of 57 national farm, lending, ag input, conservation, and insurance organizations. ********************************************************************************************** NPPC Applauds Funding for Ag Inspectors The House of Representatives approved $19.6 million in funds for more agricultural inspectors at U.S. land, air, and seaports. The main goal is to keep African Swine Fever and other foreign animal diseases from getting into the United States. The funding is a part of the fiscal year 2020 Department of Homeland Security appropriations bill and a top priority for the National Pork Producers Council. “For more than a year, the NPPC has advocated for an increase in the number of agricultural inspectors at our borders,” says NPPC President David Herring. “We applaud the approval of an essential provision to reduce the risk of ASF and other diseases, as well as to protect the rural economy from a devastating outbreak.” The NPPC also says they would also like to thank USDA and Customs and Border Protection for all they have done to strengthen U.S. biosecurity. The most likely path for a foreign animal disease to enter the country would be through the importation of infected animals or contaminated products. An outbreak would immediately close U.S. pork export markets, causing significant economic harm to U.S. farmers, consumers, and the overall economy. Herring adds, “NPPC continues to advocate for other disease preparedness measures, including establishing a U.S. Foot-and-Mouth Disease vaccine bank as provided for in the 2018 Farm Bill.” ********************************************************************************************** Farmers Launch U.S. Hemp Growers Association The formation of the new U.S. Hemp Growers Association was announced in Indianapolis. The brand-new association will focus on things like educational efforts and market development resources, research, and networking opportunities. A USHGA release says the organization will provide a unified voice for farmers to actively engage in critically important advocacy efforts. More than 300 members of the U.S. Hemp Farming Alliance will fold into the new USHGA. Caryn Wilcox will serve as the initial executive director of the organization. A majority of the organization’s board of directors is expected to be active hemp farmers. “The forward-thinking industry leaders who’ve come together in this association see the potential for hemp as an agricultural commodity,” Wilcox says. “They also understand how much this industry can contribute to the environment and the sustainable products that benefit farmers and consumers at the grassroots level.” Wilcox also says she’s honored to be part of this historical moment.
| Rural Advocate News | Thursday December 19, 2019 |
Washington Insider: Tax Break Controversies As the Congress works to authorize federal spending for the current fiscal year amid the bitter, ongoing political fights, it is also working to authorize the array of tax credits that negotiators typically work out annually. This year’s package was unveiled Tuesday, and, “as usual, is intended to transcend partisan bickering and allow lawmakers to dole out special-interest tax breaks credits “that were set to expire or had already ended.” The temporary nature of those benefits tends to set off a year-end scramble, NYT says, with lawmakers trying to aid businesses and entities that have come to depend on them. Among the biggest changes tucked into this year’s agreement is the elimination of taxes intended to fund the Affordable Care Act, including a tax on medical devices, health insurers and generous health plans. That tax had never gone into effect and the House voted overwhelmingly to repeal it this year. The health insurance tax, which applied to health insurers and the medical device tax, has been sporadically carried out, NYT said. This year’s deal, which passed the House as part of an overall spending plan for eight agencies 297 to 120 on Tuesday, also extends tax benefits for railroad track maintenance, racehorse and racetrack ownership, hiring and investment on Native American reservations and some victims of natural disasters. A one-year extension was given to winemakers, beer brewers and liquor distillers allowing them to avoid tax increases of as much as 400 percent. It also extends a handful of credits for renewable energy, like wind production, but does not include an extended credit for the buyers of electric cars, the Times emphasized. Congressional staff and lobbyists were referring to Tuesday’s agreement as a “skinny” deal, which fell short of both Democratic and Republican ambitions and could have included additional aid to low-income families and fixes for errors written into the sweeping package of tax cuts signed in 2017. This year’s deal also highlights the inability of the administration’s tax cuts to reduce businesses reliance on targeted credits and other breaks. The 2017 tax package that cut the corporate rate to 21% was intended to reduce the need for specialized tax breaks that had been good for lobbyists but costly and inefficient for taxpayers. Those provisions were usually made temporary for budgetary reasons and allowing lawmakers to provide breaks without adding to the 10-year federal budget deficit. But many have routinely been renewed “continuing to add to America’s fiscal woes,” the Times said. The provisions in the current deal could add more than $427 billion to the federal debt over the next decade, according to the congressional Joint Committee on Taxation. Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, said “there isn’t a single credible justification to defend it.” Negotiators reached the deal hours before they were set to vote on spending legislation to keep the government fully funded through the end of the fiscal year. The extenders, through a procedural maneuver on the House floor were to be attached to one of the spending packages up for a House vote that then will go to the Senate which expects to take up the legislation before government funding expires on Friday, the Times said. Congressional staff said that a broader agreement including more tax credits had been “at hand” earlier but that White House officials and Treasury Secretary Steven Mnuchin ultimately rejected it. Secretary Mnuchin pushed for any larger deal to include the relief for restaurant owners, they said, but Democrats were unwilling to support it without more in return on their priorities. The deal as agreed to includes a few reversals from the 2017 law. It eliminates a tax increase that hit the children and spouses of deceased members of the military, along with a new tax that was set to hit churches and other nonprofit organizations that offer parking to their employees. Other tax break winners include movie, television and theater producers and “energy efficient” homes—as well as owners who install electric charging station or other types of renewable refueling in their principal residence. However, supporters of renewable energy generally panned the package, saying it does little to incentivize a shift to cleaner power. So, we will see. Politico emphasized that the House bill included a $15 billion tax break for biodiesel through 2022 that Sen. Chuck Grassley, R-Iowa, and other Midwestern members were pushing to benefit “states where biodiesel plants shut down throughout the year.” The bill would also renew through 2020 a 46-cent-per-gallon credit for production of cellulosic and algae-based fuels and it would extend a special allowance for biofuel plant property. So, we will see. Clearly, the current package includes significant benefits for producers and should be watched closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Thursday December 19, 2019 |
More Time to Comment on USDA’s Hemp Rule The comment period on USDA’s interim final rule for hemp production has been extended until January 29, 2020. USDA took the move after requests from several stakeholders who felt that more time was needed to offer their views on the regulation. The comment period had been set to end December 30. USDA’s Ag Marketing Service (AMS) has already received nearly 1,200 comments on the rule, many of them raising concerns that the sampling and testing protocols are unworkable and could undermine the growth of the hemp industry.
| Rural Advocate News | Thursday December 19, 2019 |
USTR Formally Publishes Suspension of December 15 Tariffs On China The Office of the U.S. Trade Representative (USTR) on Wednesday in the Federal Register published the formal notice that suspends indefinitely the tariffs that were to go into effect on a host of Chinese goods December 15. “On December 13, 2019, following months of negotiations, the United States and China reached a historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China's economic and trade regime, including with respect to certain issues covered in this Section 301 investigation,” USTR said. “In light of progress in the negotiations with China, and at the direction of the President, the U.S. Trade Representative has determined that the action announced on August 20, as modified by the August 30 notice, is no longer appropriate. Specifically, and in accordance with the President's direction, the U.S. Trade Representative has determined to suspend indefinitely the imposition of additional duties of 15% on products of China covered by Annex C of the August 20 notice, which otherwise would have been effective on December 15, 2019.” Further, USTR said they expect to issue another notice in the near future “reducing the rate of additional duty” on good from China that were covered under Annex A of the notice published August 20 “in light of progress in the negotiations.” USTR also said that if further modifications are needed, they will take into account comments and testimony that have previously been provided by stakeholders.
| Rural Advocate News | Thursday December 19, 2019 |
Thursday Watch List Markets Thursday is a busy day of reports, starting with weekly export sales, U.S. jobless claims and a new U.S. Drought Monitor at 7:30 a.m. CST. Reports on U.S. existing home sales and the Conference Board's leading indicators are due out at 9 a.m., followed by natural gas inventory from the U.S. Energy Department at 9:30 a.m. The National Weather Service will also have a new 30-day forecast early Thursday. Weather Thursday will be dry and warmer over the central, eastern and southern U.S. Conditions will favor transportation and livestock, and may offer some late-harvest opportunity. Precipitation will be confined to rain and snow in the Pacific Northwest.
| Rural Advocate News | Wednesday December 18, 2019 |
USMCA Nearing House Vote Lawmakers in the House of Representatives are on track to pass the U.S.-Mexico-Canada Agreement this week. The House Ways and Means Committee began the process Tuesday, considering the implementing bill in a markup hearing. During the hearing, Committee Chairman Richard Neal said during his opening statement, which included no mention of agriculture, that the changes “set a new standard for U.S. trade agreements.” Ranking Republican on the Committee, Kevin Brady, stated the agreement “pries open Canada’s market” for several U.S. farm commodities. The committee moved the bill on to the full House for consideration. The House is expected to vote on the implementing bill Thursday. The Senate, however, will not consider the legislation until after any impeachment hearings, likely around late January. The bill repeals the current North American Free Trade Agreement and replaces it with USMCA. President Donald Trump sent the implementing legislation to Congress last week, following an agreement on changes to the deal with House Democrats. ************************************************************************************* House Approves Spending Package for Agriculture Through September 30, 2020 The House of Representatives Tuesday advanced a spending package that will extend the biodiesel tax credit and offer additional disaster aid to farmers. The American Soybean Association says the biodiesel tax credit will "expand markets for soybean growers." The tax credit expansion is part of a tax package amendment included in a funding bill for the Department of Agriculture and others. If passed, the credit would be extended at $1 per-gallon for five years covering 2018-22, retroactive to December 31, 2017, through December 31, 2022. The biodiesel tax incentive lapsed in December 2017. The National Biodiesel Board says the credit will support expansion of biodiesel and renewable diesel production. NBB’s Kurk Kovarik says the deal provides policy certainty that needed to “support investments and continued growth of production.” Lawmakers are also including an additional $1.5 billion in disaster aid in the spending bill, aimed at helping farmers recover from damages in 2019. The Senate is expected to pass the legislation later this week. ************************************************************************************* National Bio and Agro-Defense Facility Authorization Clears Senate Ag Committee The Senate Agriculture Committee Tuesday announced committee passage of legislation to support agro-biodefense. Committee Chairman Pat Roberts, a Kansas Republican, says the legislation means “we are one step closer to securing a more robust defense of our nation’s agriculture and food supply.” The National Bio and Agro-Defense Facility Act of 2019 would authorize the Agriculture Secretary to use the facility as a national security laboratory protecting agriculture and food. The bill directs NBAF to carry out the relevant objectives of a Homeland Security Presidential Directive and the National Biodefense Strategy, both aimed at securing the nation's food and agriculture. The $1.25 billion facility in Manhattan, Kansas, is expected to be operational by 2022-2023. Ranking member of the Committee, Democrat Debbie Stabenow of Michigan, says the legislation is "important in the critical effort to help safeguard our food supply from animal diseases and intentional threats." The bill also outlines the national security mission of the facility and the duties of the agencies responsible for implementing the mission. ************************************************************************************* CoBank: Challenges Ahead for 2020 A new report from CoBank suggests more challenges are ahead for Rural America and agriculture. CoBank recently released its report titled The Year Ahead: Forces That Will Shape the U.S. Rural Economy in 2020. The trade environment for 2020 remains hazy, according to CoBank, which says beyond a possible U.S.-China phase one deal, “more progress with China will be a challenge.” Trade is one of the many challenges producers face in the coming year. A phase one agreement could be completed in January. However, without a meaningful full trade deal with China, CoBank says, "the U.S. agricultural economy will continue to struggle with trade uncertainty." Further uncertainty focuses on potential payments to farmers, which helped prop up farm income in 2019. Meanwhile, the report says the last few years demonstrate the resiliency of U.S. agriculture, and there is room for optimism in 2020. Rising animal protein and dairy exports will be a bright spot for producers, with African Swine Fever outbreaks abroad creating export opportunity for U.S. producers. ************************************************************************************* NMPF REAL Seal Redesign Seeks to Clear Consumer Confusion The National Milk Producers Federation Tuesday unveiled a redesigned website for the REAL® Seal, www.realseal.com. The website seeks to help consumers avoid marketplace confusion regarding real dairy products and imitators. This is the first significant change in the online presence for the REAL Seal since NMPF first assumed management of the seal in 2012. The new website will contain more content to educate consumers about why they should look for the seal on foods they buy, while also continuing to help those companies using the seal to enhance their product marketing. Jim Mulhern, president and CEO of NMPF, says the website redesign comes as NMPF “continues to battle the misuse of dairy terms by plant-based products.” The new website both educates consumers about how real dairy foods compare to imitators, and explains how the REAL Seal program delineates which brands can use the seal. The REAL Guide component of the website helps shoppers find certified brands and products displaying the seal. ************************************************************************************ USDA Funds Conservation Innovation across the Country The Department of Agriculture’s Natural Resources Conservation Service Tuesday announced $12.5 million in Conservation Innovation Grants. The effort supports development of innovative systems and technologies for private lands conservation. The funding is provided through the Conservation Innovation Grants program, which “funds the future of agriculture and conservation” through grants to organizations and universities that are developing the next generation of tools and technologies to boost conservation on agricultural lands. NRCS Chief Matthew Lohr says the projects will “result in new science-based tools for our toolbox.” The 2019 funding pool focused on four priority areas: water quantity, urban agriculture, pollinator habitat and accelerating the pace and scale of conservation adoption. NRCS selected 19 projects for the grant awards. One of the projects, at the University of Minnesota, will evaluate cover crop rotations for vegetable systems, and their impact on pollinators. A complete list of funded projects is available online, at nrcs.usda.gov.
| Rural Advocate News | Wednesday December 18, 2019 |
Washington Insider: New Fed Criticism Criticism of the Fed is coming from a relatively new direction just now, Bloomberg is reporting this week. The administration has been a persistent critic for not reducing interest rates further and quicker — but now the bank is being accused for “running the risk of fomenting an eventual financial crisis by easing banking regulations at the same time that it’s cut interest rates.” The criticism is coming from “some former Fed officials, including ex-Vice Chairman Alan Blinder and financial stability experts Daniel Tarullo and Nellie Liang, Bloomberg says. They worry that the combination of looser credit and laxer rules will prompt financial institutions and investors to pile on leverage and take excessive risks. After lowering rates three times, Fed policy makers left them unchanged on Dec. 11 and forecast they would stay that way through the 2020 presidential election year. The central bank has also made or proposed various changes in financial oversight, including alterations to the stress tests that banks undergo and an overhaul of the Volcker Rule’s trading restrictions. Some observers including presidential candidate Elizabeth Warren have warned the central bank against loosening its regulatory grip. Liang, who was nominated by President Trump to the Fed board but later withdrew, voiced concern about mushrooming corporate credit. “I worry that defaults and investor losses will be higher than expected in the next downturn and will make the next recession more severe,” she said. Fed leadership has pushed back hard against any suggestion it has made the financial system more vulnerable by loosening regulations, arguing that the capital requirements of the biggest banks “remain as tough as ever.” The U.S. has “a stable, healthy and resilient banking sector,” Randal Quarles, Fed vice chairman for supervision, told lawmakers on Dec. 4. He said that the Fed’s focus has been on tailoring the regulation of regional and smaller lenders. “One of our principles has been to ensure that we do not reduce in any material way the loss absorbing cushion of the institutions,” he said “I think we have succeeded in doing that.” Former Fed Governor Tarullo is not so sure. He zeroed in on the stress tests, including the disclosure of more information about the models behind them. “I suspect quite strongly that the effective amount of capital the banks have to have for a given portfolio is lower because they have so much more information about the stress tests,” said Tarullo, who was the Fed’s point man on regulation after the 2008 crisis and is now at the Harvard Law School. Ex-central bank Vice Chairman Donald Kohn welcomed efforts to tailor rules to fit the size of the institution but cautioned regulators against taking their eye off of “very sizable” regional banks. “You get a bunch of regional banks all doing the same thing at the same time then that could be systemic,” said Kohn, a member of the Bank of England’s Financial Policy Committee. There’s also “reason to be cautious about what’s going on outside the banking system when you lower rates because you have fewer macro-prudential tools to deal with that sector,” he said. For example, under the Dodd-Frank Act, the sweeping post-crisis regulatory reforms introduced to strengthen the banks, the Financial Stability Oversight Council monitors the overall financial system. Headed by Treasury Secretary Steven Mnuchin, it has the power to designate nonbank financial institutions such as insurance companies as systemically important and so subject them to increased regulation. The council, which includes the heads of the Fed, the Securities and Exchange Commission and other regulatory agencies, has recently shifted its focus toward monitoring potentially risky financial activities and raised its hurdle for singling out individual firms for more supervision. “They come very close to saying that they’re never going to designate a nonbank no matter what,” Tarullo said. Former Fed Vice Chair Alan Blinder said Trump appointees at other regulatory agencies were more to blame for what he called “backsliding,” but thought the Fed is “not immune and shouldn’t be easing credit and bank rules simultaneously.” “You can try to push up aggregate demand and expand the economy but don’t drop your regulatory safeguards as well,” the Princeton University professor said. Some current Fed policy makers share the concerns of their former colleagues. For example, Fed Governor Lael Brainard has voted against some of the board’s rule changes while Boston Fed President Eric Rosenberg has called for higher bank capital in today’s low interest rate environment. Liang, who is friend of Powell’s, said she agrees with him that financial stability risks aren’t elevated currently. “If you took a snapshot of the situation now, it looks OK,” the Brookings Institution fellow said. “But I worry about what the situation would look like in a year or two given the incentives from recent policy changes.” So, we will see. These are important concerns, but likely will be unpopular just now given the improved prospects for the economy since the phase one China deal seems to be agreed. Still, they are extremely important and should be watched closely by producers amid the current political horse trading, Washington Insider believes.
| Rural Advocate News | Wednesday December 18, 2019 |
USMCA Measure Advances The House Ways and Means Committee Tuesday advanced to the floor implementing legislation for the U.S.-Mexico-Canada Agreement (USMCA) on a nearly unanimous vote. The panel agreed to favorably report the bill (HR 5430) without changes after a mock markup where members reviewed the 239-page legislation. By law, implementing legislation for a trade agreement cannot be amended. One of the panel members registering his disappointment was Rep. Bill Pascrell Jr., D-N.J., who said the bill was getting “a bum’s rush in an effort to schedule a White House East Room victory celebration. I want to register that I am at best deeply uneasy about how this process has concluded.” He appeared to cast the only audible “no” vote on the plan. House is scheduled to vote Thursday on the bill. Senate action, however, will take place in 2020, said Majority Leader Mitch McConnell, R-Ky., after the chamber finishes the impeachment trial of President Donald Trump.
| Rural Advocate News | Wednesday December 18, 2019 |
House Approves Spending Bills Totaling Nearly $1.4 Trillion The House on Tuesday approved $1.4 trillion in spending for Fiscal Year (FY) 2020 that began Oct. 1. There were two large “minibus” packages, largely to avoid the even bigger omnibus bill that both sides say represents the worst of the "swamp." The page tally totaled 2,313 pages; more than 3,800 pages if explanatory statements are included. Ag interests are noting the tax package included in the bill which has a retroactive extension of the $1 per gallon biodiesel tax incentive program, from 2018 through 2022. Senate Finance Chairman Chuck Grassley, R-Iowa, helped establish the credit 15 years ago. The Senate is expected to vote on the spending packages this week and key White House aides have indicated Trump plans to sign the bills before a temporary spending bill expires at midnight Friday.
| Rural Advocate News | Wednesday December 18, 2019 |
Wednesday Watch List Markets The only official report on Wednesday comes from the U.S. Energy Department's weekly inventory report, due out at 9:30 a.m. CST and includes ethanol inventory. Weather forecasts for North and South America remain of interest as does any news pertaining to the new trade agreement with China or the proposed biodiesel tax credit in Congress. Weather Dry conditions will be in place over almost all primary crop areas Wednesday. Precipitation will be confined to snow in the immediate Great Lakes. Temperatures will be seasonal to below normal, coldest in the northern and eastern Midwest.
| Rural Advocate News | Tuesday December 17, 2019 |
USMCA: Mexico Objection Won’t Stop House Vote An objection by Mexico won’t stop the U.S. House from approving the U.S.-Mexico-Canada Agreement. Mexico had promised reciprocal measures regarding labor enforcement inspections. However, Agri-Pulse reported late Monday that Mexico was going to withdraw the objection. Mexico previously approved the agreement this summer, and even approved the modified agreement last week, before announcing the concerns. An official from Mexico is in Washington, D.C., this week to talk with lawmakers. President Donald Trump sent implementing legislation for USMCA to the House late last week, and the chamber still plans to vote and approve the agreement this week. Spending bills are expected Tuesday, followed by a vote on the articles of impeachment Wednesday, setting up a vote on USMCA Thursday, in the House. Meanwhile, the U.S. Senate will not consider USMCA until January, or later, following impeachment hearings. Also, last week, Senate Majority Leader Mitch McConnell said there was “no chance” the chamber would remove the president from office. ************************************************************************************* Skepticism Remains over China Deal Commodity markets have done relatively little in reaction to the phase one trade agreement between the U.S. and China. Trade expert Jim Bower in his daily newsletter, states there "remains a lot of skepticism" regarding the agreement, suggesting it's "unclear" how China can manage to increase purchases of U.S. agricultural products. The agreement reportedly includes $40-$50 billion in annual purchases of U.S. ag products by China for two years. And, a fact sheet on the agreement states that the agriculture provisions address “structural barriers to trade,” and will support a “dramatic expansion” of agricultural exports. The agreement, expected to be signed in early January, received cautious praise from U.S. agriculture. U.S. Trade Representative Robert Lighthizer told CBS over the weekend regarding the phase one agreement, “This is totally done. Absolutely.” The U.S.-China Business Council called the agreement “an encouraging first phase,” while adding, “but, this is just the beginning.” The council says both sides “must commit to developing a new paradigm and economic relationship.” ************************************************************************************* Farm Credit Administration: Expect Low Crop Prices in 2020 A quarterly report to the Farm Credit Administration last week suggests commodity prices will mostly remain low next year. The report cites large global supplies of crops in storage, saying that will limit attractive price opportunities for U.S. farmers. For the next three years, soybean prices are projected at roughly $8.50 a bushel, with corn at $3.70 a bushel. The report says livestock and dairy returns are likely to be positive in early 2020, but trade risks remain elevated. Meanwhile, the report says that while it’s been a difficult year in 2019 for farmers and ranchers, facing trade disruptions, weather extremes and low prices. Crop insurance indemnities, farm programs, and Market Facilitation Program payments continue to provide financial support to the farm economy. The report says farm financial conditions may become more challenging next year without stronger markets, or more aid payments. Further, the Farm Credit System remains financially sound, according to FCA, and lenders continue to have the risk-bearing capacity to respond to the credit needs of agriculture. ************************************************************************************* USDA Seeks Input on Environmental Quality Incentives Program Rule The Department of Agriculture wants input on proposed changes to the Environmental Quality Incentives Program known as EQIP. The rule takes effect upon publication and includes changes to the program in the 2019 farm bill. Natural Resources Conservation Service chief Matt Lohr says the new rule will "enable NRCS to better support locally-led conservation efforts while also expanding producers' ability to address significant resource concerns." NRCS will make available $1.2 billion for producers in fiscal 2020, and NRCS state offices will announce signup periods for EQIP in the coming weeks. Changes to EQIP include creating incentive contracts and payments for incentive practices. The new rule requires NRCS to offer an advance payment option for historically underserved producers. USDA also proposes changing the payment cap for producers participating in the Organic Initiative to $140,000 for contracts entered between fiscal 2019 through 2023. Finally, the new rule expands the Conservation Innovation Grant program. The comment period closes February 18, 2020. ************************************************************************************* U.S. ACOE: Missouri River Flood Event Over The Army Corps of Engineers Kansas City District Monday declared the Missouri River flood event over. The district’s emergency operations center returned to normal operations for the first time since March 13, 2019 - 279 days. However, emergency work continues to repair a levee in Northwest Missouri damaged by flooding this year. As of last Wednesday, all Missouri River stages within the Kansas City District area of operations were below flood stage for the first time since March 13 of this year. Forecasts call for the water levels to continue to decrease. Flooding began during the March so-called bomb-cyclone winter storm, and continued all year in the lower reaches of the Missouri River, downstream of the Gavins Point Dam in Yankton, South Dakota. The Corps is continuing to draw down excess water, as releases from the dam will be reduced to 25,000 cubic feet per second in January and remain near that rate for the remainder of the winter. Normal winter releases range between 12,000 and 17,000. ************************************************************************************ Booker Announced CAFO Moratorium Legislation Senator Cory Booker Monday announced legislation to phase out concentrated animal feeding operations, known as CAFOs. The New Jersey Democrat says the Farm System Reform Act of 2019 would place an immediate moratorium on new and expanding large CAFOs, and phase out by 2040 the largest CAFOs as defined by the Environmental Protection Agency. The legislation would also restore mandatory country-of-origin labeling requirements for beef and pork and expand to dairy products. Additionally, it would prohibit the Department of Agriculture from labeling foreign imported meat products as “Product of USA.” Booker labels CAFOs as “large factory farms,” claiming the operations “are harmful to rural communities, public health, and the environment, adding “we must immediately begin to transition to a more sustainable and humane system.” As noted by Politico, Booker, a vegan, has said he’s not interested in telling Americans what to eat. However, proposing sweeping reforms to the U.S. food system is routine for the Senator.
| Rural Advocate News | Tuesday December 17, 2019 |
Washington Insider: Administration Considers More Tariffs on Europe The urban media, and others, are reporting this week that even as administration officials are taking public victory laps over the phase-one deal with China — and in spite of continuing criticism of that agreement — they are considering heavy tariffs on a broad range of European goods that could reach "100 Percent in some cases." The import taxes are retaliation for excessive subsidies by the European Union to the aerospace giant Airbus. The World Trade Organization ruled in favor of the United States this year in a dispute centering on European support for the aerospace giant Airbus that has lasted 15 years. In May, the WTO ruled that Europe's financial assistance to Airbus violated global trade rules and then in September, it effectively authorized the Trump administration to impose tariffs of up to $7.5 billion a year on European imports, pending negotiations over the removal of the subsidies. The administration unveiled an initial list of tariffs in October. Then, this month, after Europeans suffered another setback in the dispute, administration officials said they would expand the list and increase tariffs already in place. Last week, the United States Trade Representative (USTR) published the updated list, including a variety of items Americans buy from Europe, including dairy products such as yogurt, butter and several types of cheese; olives and olive oil; other food products; hand tools; clothing; wine and grape brandy; and Scotch and Irish whisky. The trade representative also warned that it was considering raising tariff rates on imported items that are already subject to 25 percent tariffs as part of the Airbus dispute. The Times report said that the administration has increasingly seized on tariffs to punish Europe. In addition to considering tariffs on German cars, the United States is mulling separate tariffs on French wine and other products as retaliation for a new tax that the administration says unfairly targets American technology companies. This year, France passed a so-called digital service tax, which hits large companies that sell and advertise to French consumers but have not faced large tax liabilities in France. Then, the USTR recently recommended tariffs up to 100 percent on $2.4 billion of French products after declaring the tax a threat to America's national security. Some of those products, most notably French wines and cheeses, are also on the new list released on Friday. President Trump told reporters this month that the USTR finding was justified. "They're starting to tax other people's products," he said. "So therefore we go and tax them." The extension of tariffs on the European Union is a rare example of the administration's agreeing with the WTO. Administration officials have frequently criticized the body, which they call unfair to the United States, and they have worked to undermine its effectiveness. The administration has blocked new appointments to a crucial panel at the organization that hears appeals in trade disputes. This week, the terms of two appointees to the panel expired, leaving the panel without sufficient membership to hear new cases. That means there will be no official resolutions of many global trade disputes for the foreseeable future. So, we will see. The Europeans are tough negotiators and have numerous "high protection" tariffs of their own that are well supported politically. While this particular fight may have less potential influence on U.S. producers than the tariff retaliation fight with China does, it can play an enormous role in the global economy—especially as economic uncertainty is increasingly identified as a potential threat to future U.S. growth. Thus, these fights are important and should be watched closely by U.S. producers as the details and trends emerge, Washington Insider believers.
| Rural Advocate News | Tuesday December 17, 2019 |
US Commodity Groups Eyeing China Market Several U.S. commodity organizations are looking at the U.S.-China Phase One deal as an opportunity to sell more of their products to China. Jim Sumner, president of the USA Poultry and Egg Export Council, said Friday's deal opened an opportunity for $2 billion in annual poultry exports to China. "We hope to have a good share of that $40 billion," he said. Meanwhile, U.S. pork exports to China were $1 billion in 2017, according to the U.S. Meat Export Federation. An Iowa State University analysis in 2018, published before the swine fever outbreak, concluded that China could import $8.9 billion more U.S. pork once tariffs were gone. Chinese officials at a Friday press event signaled they would buy some U.S. wheat and rice, among other commodities. Before that China confirmation, many U.S. commodity analysts said there were low odds China would purchase U.S. rice or wheat.
| Rural Advocate News | Tuesday December 17, 2019 |
Mexico Accepts US Assurance on Labor Attachés The road toward approval of the U.S.-Mexico-Canada Agreement (USMCA) hit a bit of a bump to open the week, but a quick exchange between U.S. and Mexican trade officials smoothed things over. Mexican Undersecretary for North America and Chief Trade Negotiator Jesús Seade feared language in the implementing legislation for USMCA Mexico meant the U.S. was going to send labor inspectors to Mexican plants. U.S. Trade Representative Robert Lighthizer Monday quickly fired off a letter to assure Seade that Department of Labor attachés that would be in Mexico were not labor inspectors and pledged that the attaches would "abide by all relevant Mexican laws." Lighthizer said the use of the attaches was "routine" and that the Labor Department attachés would "work with their Mexican counterparts, workers, and civil society groups on implementation of the Mexican labor reform." At an event in Washington, Seade declared Lighthizer's response eased his fears. "We are satisfied, very satisfied," Seade said, noting other authorities in Mexico were also pleased. Further, Seade indicated that Mexico has not found any other issues in the implementing legislation that would be questionable. The Mexican Senate December 12 approved the modifications to the USMCA pact in a 107-1 vote. The House is expected to vote yet this week, but the Senate will not take up the USMCA legislation until later in January, after the impeachment trial.
| Rural Advocate News | Tuesday December 17, 2019 |
Tuesday Watch List Markets On Tuesday, the U.S. Census Bureau will release November housing starts at 7:30 a.m. CST, followed by a monthly Federal Reserve report on U.S. industrial production at 8:15 a.m. Until the new trade deal with China is in writing, traders will continue to look for any helpful details of the agreement. Weather Snow, ice and rain will occur Tuesday from the northern middle Atlantic region through the northeast U.S. with the potential for travel delays. Rain or showers from the southern middle Atlantic area through the southeast U.S. with thundershowers also possible in southeast areas. Mainly dry elsewhere in the key U.S. crop and livestock areas Tuesday. Snow showers or squalls may develop through the Michigan area towards evening. Rain continues in Brazil corn and soybean areas while Argentina is drier today.
| Rural Advocate News | Monday December 16, 2019 |
Details Emerging on the U.S. and China Phase One Agreement Both China and the U.S. officials confirmed on Friday that they’ve reached a “Phase One” agreement. Emerging details show the agreement includes some tariff relief, increased agricultural purchases, as well as structural changes to intellectual property and technology issues. However, a CNBC report says some details of the partial accord between the world’s two largest economies remain cloudy. As Chinese officials briefed reporters of some details on Friday morning, President Trump also announced some of the terms of what he called an “amazing deal.” The U.S. does plan to eliminate tariffs on multiple Chinese goods in stages, which was a priority for Chinese negotiators. Details on when that would take place weren’t announced. Trump announced that the U.S. would cancel its next round of tariffs on Chinese goods that were scheduled to go into effect over the weekend. Via Twitter, Trump announced the White House will leave 25 percent tariffs on $250 billion in imports in place, while also cutting existing duties on another $120 billion in goods. Beijing will increase its agricultural purchases from the U.S. by a significant amount, though Chinese officials didn’t say by how much. Politico says some of the details include China giving up its restrictions on growth hormones for beef and easing an approval process for genetically modified crops. ********************************************************************************************** Ag Reacts to Phase One U.S., China Trade Deal Reaction from U.S. agriculture and its stakeholders across the country is positive regarding the “Phase One” trade deal between the U.S. and China. Colin Woodall, CEO of the National Cattlemen’s Beef Association, says the agreement is welcome news for the U.S. beef industry. “We’re optimistic that this positive news will bring long-lasting relief to farmers and ranchers who’ve been targeted by China’s retaliatory tariffs for many months,” Woodall says. “China’s unjustifiable non-tariff barriers and restrictions on science-based production technologies must be addressed as part of this agreement.” Zippy Duvall, President of the American Farm Bureau, says farmers are looking forward to getting back to business around the globe. “China went from the second-largest to the fifth-largest market for U.S. agricultural products since the trade war began,” Duvall says. “Reopening the door for trade with China and other countries is key to helping farmers and ranchers get back on their feet.” Senate Finance Chair Chuck Grassley of Iowa says easing tensions and lowering tariffs are welcome news. “This paves the way for a broader agreement that must address non-tariff barriers and intellectual property issues,” Grassley says. U.S. Wheat Associates and the National Association of Wheat Growers say they’re looking forward to learning more about the agreement. ********************************************************************************************** Senate Republicans Appear Unhappy About USMCA Changes Some Senate Republicans appeared to be unhappy with the final agreement on changes to the U.S.-Mexico-Canada Trade Agreement worked out between the White House and House Democrats. Politico says the Republicans appeared to be “grumbling” as they came out of a meeting with U.S. Trade Representative Robert Lighthizer last week. Conservatives say they were left out of the negotiations and think the new version of the North American Free Trade Agreement is too liberal. Pennsylvania Republican Pat Toomey is especially unhappy with the Trump Administration, describing the deal as a “terrible new standard” for future trade agreements. One of his biggest concerns is a key provision regarding prescription drugs. Senator John Cornyn of Texas says he’ll likely support the agreement but thought the Finance Committee had been “frozen out.” Reports say it’s unlikely that Republicans won’t support the deal. Republican supporters are confident the deal will win approval, especially because it just needs a simple majority to pass. Senate Finance Chair Chuck Grassley says he’ll skip the optional mock markup process, setting up a quick consideration of the agreement. ********************************************************************************************* House Votes Expected on Appropriations, USMCA, and Impeachment This Week Congress took a long weekend out of town as soon as a White House Congressional Ball wrapped up last Thursday. The House is expected to cast some key votes this week, starting on Tuesday, and the chamber will likely be in session through Friday. The House will meet at nine a.m. for legislative business, with votes expected sometime between nine and ten o’clock that morning. The Hagstrom Report says House and Senate appropriators and Treasury Secretary Steven Mnuchin (Muh-NOO-chin) reached an agreement on all 12 major appropriations bills last week. A vote on the bills is expected on Tuesday. House Majority Leader Steny Hoyer of Maryland says the agreement reached on the U.S.-Mexico-Canada Agreement “could be brought to the floor sometime this week, provided the president has submitted the implementing legislation to Congress.” Hoyer also says if the House Judiciary Committee marks up the articles of impeachment, “a path forward will be announced” on that as well. ********************************************************************************************** Roberts says Arkansas Senator will be the Next Ag Committee Chair Current Senate Ag Committee Chair Pat Roberts will be retiring soon, so the logical question is who will replace him. Roberts, the longtime Senator from Kansas, says he expects John Boozman of Arkansas to take his spot as Chair. He told the National Journal last week that he thinks Boozman will be an excellent committee Chair. The report quoted Roberts as saying, “the soft-spoken senior appropriator from Arkansas will replace him as chairman, and that he’ll be excellent.” The National Journal notes that Boozman isn’t the most senior member of the Ag Committee. However, more long-standing members have other responsibilities. For example, Mitch McConnell can’t serve as the Senate Majority Leader and the head of a committee at the same time. In an interview, Boozman says as chair, he would focus on the farm bill and promoting bipartisan cooperation. He’s also planning to take up child-nutrition legislation if the push by Roberts to get it passed falls short of a December deadline. ********************************************************************************************* USDA to Make $550 Million Available for Rural Broadband Internet Infrastructure Ag Secretary Sonny Perdue says his agency will make $550 million available through its ReConnect Pilot Program. The application window for the funding will open on January 31st of next year. “The second round of ReConnect funding will help USDA be an even stronger partner in closing the digital divide in America’s rural communities,” Perdue says. “Our core mission at USDA is to increase rural prosperity by boosting economic opportunity in rural America.” USDA knows that rural communities need robust, modern infrastructure to thrive, and that includes having access to broadband e-Connectivity. Perdue made the funding announcement during a stop in Iowa, alongside Governor Kim Reynolds. Perdue was in the state to congratulate the Farmers Mutual Telephone Company of Stanton, Iowa, which received $6.4 million in first-round ReConnect program funding. The funds help the company connect 477 households, 35 farms, and 21 businesses to the internet. In the second round, USDA will make up to $200 million in grants available, up to $200 million in 50-50 grant/loan combinations, and up to $200 million available for low-interest loans. To learn more about the program, go to www.usda.gov/reconnect.
| Rural Advocate News | Monday December 16, 2019 |
Washington Insider: US, China Trade Deal Analysts are working hard this week to study the “phase one” deal that the U.S. and China agreed to last week — a deal the Washington Post said meant that the 21-month trade war is “on pause — for now.” Now, the Post notes that both sides are claiming the win. The White House characterized it as “amazing” and “historic.” Top Chinese officials held a rare news conference to claim the win for them and “the Chinese people.” Many business groups were cautiously optimistic. While the full text had not been made public, both sides confirmed that the U.S. committed to scaling back some tariffs in exchange for China’s purchases of about $200 billion more U.S. goods in the next two years and opening up to U.S. financial firms. The Post also published a rundown of winners and losers, beginning with the President who “can say he made a deal, even it’s limited.” It said that the administration was “trumpeting the deal particularly to farmers and manufacturing workers hit hard by the war,” the Post said. The Post also said that this deal, together with the recent Congressional approval announced by the House for the “New NAFTA” make it likely the U.S. economy will grow at 2% or more next year avoiding a recession and helping the president politically, especially with farmers. U.S. officials are saying that China agreed to buy $40 billion of agricultural products and could “hit $50 billion” in purchases. The Chinese “refuse to utter that exact figure” but they have agreed to bump up purchases, even if it’s not quite $50 billion, the Post said. The Post also lists as winners Apple and other tech companies; Walmart and other retailers; Wall Street investors; JPMorgan Chase and other U.S. financial companies and business leaders and the Chinese government—which “didn’t have to give too much,” the Post said. It charged that Chinese leaders played the U.S. president “skillfully at the end, refusing to confirm there was a deal for hours after the White House leaked there was one.” The Post also carped that the newly agreed level of purchases had already been offered “as long ago as mid-2018.” It said the biggest concession China made is to agree to penalties if it doesn’t hold up its end of the bargain — although there is a long process the U.S. agreed to go through before imposing punitive tariffs. Also, the Post identified “losers” including Peter Navarro, Stephen Bannon and China “hawks.” It said that the deal does little to fundamentally change China’s “Made in China 2025” plans and noted that the President “had many trade advisers like Navarro” urging him to keep the tariffs on and push China for a bigger deal that would commit to pulling back industrial subsidies and ending the theft of U.S. trade secrets. Instead, he scaled back tariffs and settled for a much less ambitious agreement, the report said. The President promises there will be a “phase two” after the election but many fear this will end up being a one-and-done deal. As a result, the Post says that while the deal may be a political win, the goal of forcing China to overhaul its economic policies “did not happen here.” It remains a power player and its “Made in China 2025″ plan is still moving ahead, the report says. While the latest trade data shows a small reduction in the trade deficit with China, the U.S. trade deficit with other nations is growing, the Post says. Also, the Post placed in the loss column some farmers who “didn’t make it to see the gains from this deal after two brutal years,” and noted that some U.S. companies still face tariffs on Chinese imports. The report adds China’s economy to the “list of losers” noting that it was already facing a slowing economy before the trade war began. While there is now relief that the U.S. will not go forward with tariffs on all Chinese products, the administration kept in place tariffs on nearly $370 billion worth of sales. Even more important, there is evidence that some companies shifted their supply chains out of China to other countries — lost business, that while modest as a share of China’s total economy, is unlikely to return. Finally, the Post thinks there will be debates for years about whether the administration’s China trade war was worth it and whether enough was achieved from the deal. But there is agreement that it changed the conversation about China and expanded “bipartisan support” for confronting unfair Chinese business practices. So, we will see. A key concern is what the new U.S.-China policies turn out to be and what impacts linger on important markets — developments producers should watch closely as the deal’s “devilish details” emerge, Washington Insider believes.
| Rural Advocate News | Monday December 16, 2019 |
Tax Extenders May Wait Until 2020 It looks like key House Democrats are back to a big package of tax extenders and that will present approval hurdles for items like the lapsed biodiesel tax incentive, congressional sources advise. House Ways and Means Chairman Richard Neal, D-Mass., reportedly altered his prior view this week for a “skinny” package of tax provisions that did not include more than $100 billion worth of refundable tax credits for low-income workers and families that Neal has been pushing since June. But on Thursday, Neal changed. Asked if the skinny package was still on the table, Neal said, “Nah. We are trying to negotiate a big ending... Everything is in the mix now.” In the Senate, Republicans appeared downbeat on the prospects for a tax deal before the year is out. Sen. Pat Roberts, R-Kan., said he thought January was more likely. If so, that means the lapsed biodiesel tax credit will not likely be dealt with yet this year.
| Rural Advocate News | Monday December 16, 2019 |
US-China Trade Deal Completed The U.S. and China reached a phase one trade agreement Thursday, with U.S. and Chinese officials talking about some of the details on Friday. The Chinese have committed to purchase an additional $16 billion in U.S. ag goods beyond a $24 billion base – the level of U.S. ag exports to China in 2017. The total of $40 billion in purchases includes China indicating they will work to try to make additional purchases. While the U.S. has indicated the list of commodities will not be made public, commodities mentioned thus far are corn, wheat, cotton and rice by the Chinese. But perhaps more important are issues covering broader agricultural trade matters. The Agriculture Chapter addresses structural barriers to trade and will support a dramatic expansion of U.S. food, agriculture and seafood product exports, increasing American farm and fishery income, generating more rural economic activity, and promoting job growth, according to the U.S. Trade Representative (USTR). “A multitude of non-tariff barriers to U.S. agriculture and seafood products are addressed, including for meat, poultry, seafood, rice, dairy, infant formula, horticultural products, animal feed and feed additives, pet food, and products of agriculture biotechnology,” USTR said. China is expected to purchase a total of $200 billion in U.S. goods, including agriculture items.
| Rural Advocate News | Monday December 16, 2019 |
Monday Watch List Markets Traders will likely be talking about and watching for more information on the phase one trade deal that was reached on Friday. Documents have not been signed yet so it will be a while before details are nailed down. Weather forecasts remain important and USDA will have its weekly report of export inspections at 10 a.m. CST. The National Oilseeds Processors Association will publish a monthly soybean crush estimate later in the morning. USDA has tabled Crop Progress reports until April 6, 2020. Weather Moderate to heavy snow and rain are in store for the southern Plains and southern Midwest Monday. Snow offers benefit for winter wheat, but will cause transportation and safety hazards along with possibly ending field work for the year. We'll also see rain in the Delta and Mid South. Temperatures will be cold north and central and very warm south.
| Rural Advocate News | Friday December 13, 2019 |
China, U.S. Reach Tentative “Phase One” Trade Agreement President Trump signed off on the “Phase One” trade deal on Thursday afternoon. The agreement between the worlds’ two largest economies averts the December 15th introduction of a new wave of U.S. tariffs on $160 billion in Chinese goods. Bloomberg News reports the agreement was reached on Thursday afternoon and presented to the president shortly afterward. The deal does include a promise from China to buy more agricultural products. Officials also talked about possible reductions in existing duties on a number of Chinese products. The terms have been agreed on, but the legal text hasn’t been finalized yet. A White House spokesman declined a request for comment. In addition to a significant increase in Chinese agricultural purchases, officials also say the phase-one pact would include commitments from China to do more to stop intellectual property theft, something the administration has been pushing for. The phase one deal also includes commitments from both countries to no longer manipulate their currencies. Negotiators had been working on the phase one deal for months after the president announced the countries had reached an agreement. ********************************************************************************************* House Passes Farm Workforce Modernization Act The House of Representatives passed the Farm Workforce Modernization Act by a vote of 260 to 165. The bill would ease immigration for agricultural workers. It won the support of over 300 farm groups, as well as the United Farm Workers. The Hagstrom Report points out that the California Farm Bureau supported the bill but the American Farm Bureau Federation did not. AFB fears the bill will lead to higher wages for farmworkers and increase the legal vulnerability of farm employers. President Zippy Duvall says several amendments that would have addressed Farm Bureau concerns were blocked from consideration, so they “do not support the final bill passed by the House.” Heritage Action for America says it grants amnesty to millions of illegal immigrants without doing anything to “reform our broken immigration system.” Zoe Lofgren of California, the lead sponsor of the bill, says, “Our bill offers stability for American farms by providing a path to legal status for our farmworkers.” Republicans weren’t happy about the bill's formula for calculating farm wages and complained that the year-round visa pilot program doesn't include the meat and poultry sectors. They also objected to providing "amnesty" to undocumented immigrants working on U.S. farms. The bill’s prospects in the Senate and with President Trump are described as problematic. ********************************************************************************************* Ag Groups, Organizations React to House Passing Labor Bill Several agricultural groups and organizations reacted positively to the news that the House of Representatives voted in favor of the Farm Workforce Modernization Act. The National Farmers Union says the bill is the product of negotiations between a diverse array of agricultural stakeholders and farmworker advocates. “Our current farm labor system is badly broken,” says NFU President Roger Johnson. “This bill secures a legal and adequate supply of workers for family farmers and ranchers, as well as stability for farmworkers who help put food on our tables.” United Fresh Produce Association says the produce industry has suffered for far too long under a system that doesn’t meet its need for labor. The organization says, “This represents an important step in ending decades of uncertainty for growers of fresh fruits and vegetables.” Dairy groups, one of the hardest-hit ag sectors when it comes to labor shortages, are also pleased with the bill’s passage. The National Milk Producers Federation says the legislation helps to address the dairy industry’s unique workforce challenges, which is the need for year-round labor. The current labor program is seasonally-based. NMPF CEO Jim Mulhern says, “Agricultural reform is long overdue.” Mike McCloskey, Chair of the NMPF’s Immigration Task Force, says, “The urgency to reform the agricultural labor system cannot be overstated for dairy farmers.” ********************************************************************************************** United Soybean Board Elects New Chair The United Soybean Board farmer-directors have elected Jim Carroll III as Chair at the annual board meeting this week. Additionally, 19 new directors appointed by Ag Secretary Sonny Perdue were sworn in by the USDA. Carroll is a farmer from Brinkley, Arkansas. He says, “We’ve made great strides to innovate beyond the bushel and infuse every opportunity we can into growing markets and creating new uses for soybeans. We have a lot to be proud of but also have tremendous potential to further demand as we continue our progress through wise and strategic investments.” Carroll says one of his priorities as Chair will be to recognize the performance and sustainability of U.S. soy and to show their customers its many capabilities as a renewable alternative. The recent USB board meeting included remarks from Gregg Doud, Chief Agricultural Negotiator in the Office of the U.S. Trade Representative. Doud highlighted recent trade negotiations and opportunities for U.S. soybean farmers in the international marketplace. Other session topics included the Global Landscape for U.S. Soy, What’s Next for High Oleic Soybean Oil, and Agriculture’s Advantage in Capturing Carbon. ********************************************************************************************** Rise in Iowa Land Prices Not Seen as a Market Rebound The difficulties of 2019 for agriculture have been numerous. One positive note at the end of the year is a two percent rise in the price for farmland in Iowa. Favorable interest rates, strong yields, and limited land supply combined to push Iowa’s farmland values up for just the second time in the past six years. An Iowa State University news release says the statewide value of an acre of farmland is estimated at $7,432. That’s a 2.3 percent increase, totaling about $168, since last year. That number represents the average of low, medium, and high-quality farmland prices. An Iowa State University expert says that the reprieve in the land market isn’t driven by a stronger ag economy. “The recent modest increases in land values reflect a lower interest rate environment and slowly improving U.S. farm incomes,” says Dr. Wendong Zhang, leader of the Iowa Land Value Survey effort. While the growth in land values is positive, Zhang says it shouldn’t be thought of as a “sound rebound” in the land market. “Market Facilitation Payments helped to stabilize farm income and the land market,” he adds. “However, escalation of the U.S. and China trade war will put more downward pressure on farm income and land prices.” ********************************************************************************************** Arkansas Temporarily Stopped from Enforcing Meat-Labeling Law A federal judge restricted Arkansas from enforcing a law that bans the use of terms like “burger” or “sausage” when selling plant-based or vegan products. An Associated Press report says U.S. District Judge Kristine Baker granted a preliminary injunction keeping the state from enforcing the law against the Oregon-based Tofurky Company, while the constitutionality is being challenged. Tofurky produces products like tofu, as well as plant-based sausage, deli slices, and burgers. Groups like the American Civil Liberties Union, the Good Food Institute, and the Animal Defense Fund got behind Tofurkey and filed suit in July. They say the law amounts to an “unconstitutional effort” to boost the state’s meat industry. Under the law, which hasn’t been enforced yet, companies can be fined up to $1,000 for each violation of the labeling law. While putting the injunction in place, Baker did note that Tofurkey does face a credible threat of retroactive penalties under the law. The labeling law is similar to ones passed in other states like Louisiana, Mississippi, and South Dakota.
| Rural Advocate News | Friday December 13, 2019 |
Washington Insider: Fed and the US Economic Outlook While there is more angst and anxiety around Washington these days than most of us can comprehend involving trade policy, national politics and who knows what else, one sort of constant remains: the Fed’s tiff with the president. Chairman Jerome Powell “still isn’t heeding President Trump’s demands to slash interest rates,” the Washington Post is reporting this week. However, the report has a twist of its own — the Post thinks “the central bank chief still delivered unequivocal good news for President Trump’s reelection hopes.” Powell, addressing reporters after the Fed’s final meeting of a turbulent decade, predicted smoother sailing next year. He said monetary policymakers “expect moderate growth to continue,” at a slowed but still healthy 2% pace. And he took some credit for helping navigate head winds from the administration’s trade war and choppiness abroad, saying the Fed’s three interest rate cuts over the summer and into the fall, “kept the economy on track.” Indeed, the Fed’s official statement—accompanying the announcement it is holding the benchmark interest rate steady between 1.5% and 1.75% — dropped its mention of “uncertainties” facing the economic outlook, the Post noted. Actually, Powell left the door open to changing interest rates in 2020, but stressed “there is a high bar for moving rates up or down.” He emphasized that the Fed was going to do what we think is the right thing for the economy and if there is a material reassessment of our outlook, “we would respond accordingly,” he said. Powell’s presentation marked a “heel turn” from earlier this year, the Post said. Stocks tanked in July after Powell described the Fed’s first interest rate cut in a decade as a “mid-cycle adjustment,” because investors interpreted the remark as a signal the relief monetary policymakers were providing was only temporary. Now, however, “the cuts look much more permanent,” Grant Thornton chief economist Diane Swonk wrote. The vote to hold rates unchanged was unanimous, the first time that all agreed on what the Fed should be doing since May. Also 13 of the 17 members of the Fed policy setting officials indicated they expect the borrowing rate to remain untouched next year, while four projected one hike. As recently as September, nine of the policymakers projected at least one rate hike next year. Investors had largely priced in the Fed’s decision to hold rates steady and stocks rallied modestly on the chairman’s comments. Major indexes snapped a two-day losing streak, with the S&P 500 closing up 0.29% and the Dow Jones industrial average climbing 0.11% on the day. “Markets liked Mr. Powell's assertion that he would want to see a ‘significant’ and ‘persistent’ increase in inflation before he would want to raise rates and he again drew attention to the undershoot to the target in recent years,” Pantheon Macroeconomics chief economist Ian Sheperdson said, “Mr. Powell's view is not shared by all his colleagues, given that most of them expect rates to rise slightly over the next three years while core inflation is expected to be little changed. But markets put much more weight on the views of the Chair; that's probably the right approach.” Still the Post observed that “if Powell is landing on a position that benefits Trump, it’s no indication the president and his handpicked Fed chair are simpatico.” The President has treated Powell like a punching bag, attacking him relentlessly for leading the Fed to raise rates last year and not cutting them as far or as fast as the president would have liked in 2019. Now, “the pressure is largely off.” While the administration’s trade war continues to inflict harm “the Fed’s actions are widely credited with offsetting most of it, at least for the United States,” the Post said. Still, the president hasn’t extended an olive branch, although his top economic adviser, Larry Kudlow, said at a recent conference that the Fed’s role in the economy has been overstated. He thinks that the chairman may be less of a central figure in 2020, able to deliver “needed rate cuts without undermining investor confidence in an independent central bank.” And Powell has garnered improved marks from Fed watchers, including former central bank officials, who criticized his communications strategy and execution as uneven. At his most-recent news conference, Powell “projected more confidence than at any presser before,” former Dallas Fed President Richard Fisher told the Wall Street Journal. “He is visibly in command of the ship.” So, we will see. There seems to be broad agreement with Post view of a stronger Fed just now, but potential turbulence could lie ahead. It will be important for producers to watch closely the coming decisions about new tariffs on Chinese goods and on the FY2020 spending bills other issues over the coming weeks, Washington Insider believes.
| Rural Advocate News | Friday December 13, 2019 |
House Passes Ag Labor Bill The House voted 260-165 Wednesday to send to the Senate legislation that would allow undocumented farmworkers to earn legal status and streamline the H-2A guest worker program. The measure faces an uphill battle in the Senate because of the provisions for undocumented agricultural workers and their families. Thirty-four Republicans — nine more than the 25 who cosponsored the bill (HR 5038) — joined 226 Democrats in passing the measure. Of note, the passage count was not enough to override any presidential veto should the legislation, however unlikely, get to President Trump's desk. Plus the American Farm Bureau Federation came out against the legislation, expressing disappointment that efforts to improve the legislation via amendments were blocked.
| Rural Advocate News | Friday December 13, 2019 |
Government Shutdown Appears Averted on Deal Over FY 2020 Spending Lawmakers from the House and Senate reached a bipartisan deal to fund the government beyond December 20 when the current stopgap spending plan runs out. The agreement was announced by House Appropriations Chair Nita Lowey, D-N.Y. Lowey and her Republican appropriations counterparts and Senate appropriators made the announcement that they have agreed on all 12 spending bills for Fiscal Year (FY) 2020. Details of the deal, however, are not yet available even though lawmakers want to release it as soon as possible, Lowey said. Keys will be what lawmakers were able to work out on the border wall and on the Trump administration’s Title X policy blocking federal funds to groups that refer patients for abortions. Bloomberg reported the deal includes $1.375 billion for the border wall. As for the White House, Senate Appropriations Chair Richard Shelby, R-Ala., said, “They’ve been involved. But we have to make the decisions.” Expectations are the House will vote on the plans Tuesday, December 17.
| Rural Advocate News | Friday December 13, 2019 |
Friday Watch List Markets A report on U.S. retail sales at 7:30 a.m. CST is the only item on Friday's official docket. The main interest for traders is apt to be any news of a trade deal with China. Multiple sources have reported a deal is close, but official confirmation remains elusive early Friday. The weather forecast for North and South America will also attract interest heading into the weekend. Late Thursday, the Washington Post reported a deal has been reached to avoid a shutdown of the U.S. government. Weather Friday will bring snow and cold to northern areas, rain to the Southeast, and dry conditions with seasonal to above normal temperatures elsewhere. The pattern turns colder over most of the contiguous U.S. during next week.
| Rural Advocate News | Thursday December 12, 2019 |
USDA Extends MFP, DMC Deadlines The Department of Agriculture Wednesday extended sign-up deadlines for the Dairy Margin Coverage program to December 20. USDA officials cited the prolonged and extensive impacts of weather events this year for moving the deadline beyond its original date of Friday, December 13. USDA announced it is also continuing to accept applications for the Market Facilitation Program through December 20, 2019. Bill Northey, USDA undersecretary for farm production and conservation, says some farmers are still in the field, adding, "we hope this deadline extension will allow producers the opportunity to participate in these important programs.” The DMC program offers protection to dairy producers when the difference between the all-milk price and the average feed cost, the margin, falls below a certain dollar amount selected by the producer. The Market Facilitation Program is part of a relief strategy to support farmers while the administration continues to work on trade agreements. Another round of payments could come next month. ************************************************************************************* Senate Won’t Vote on USCMA Until After Christmas U.S. farmers won’t see a North America trade deal under the Christmas tree this year, despite this week’s deal to move the U.S.-Mexico-Canada Agreement forward. The House of Representatives, which must act first, plans to vote by the end of next week, sending the trade deal to the Senate. However, Senate Majority Leader Mitch McConnell told reporters Wednesday the Senate won’t be able to consider the agreement until after Christmas, pushing Senate action on USMCA into 2020. McConnell cited a full slate of issues to consider, including spending bills, judicial appointments and the pending impeachment trial. The January Senate calendar is blank, leaving room for a month of impeachment proceedings in the Senate. While Democrats were blamed for stalling the agreement, they’ve flipped the coin to blaming Senate Republicans for causing further delays. McConnell claims House Democrats waited too long before advancing the agreement to allow for the trade to become law this year. But, McConnell’s intentions could push a Senate vote to February. ************************************************************************************* Real Meat Act Introduced in Senate Lawmakers in the Senate Wednesday introduced the Real MEAT Act, a bill seeking to end deceptive labeling practices for alternative protein products. Senator Deb Fischer, a Nebraska Republican, introduced the bill Wednesday. Fischer says the bill would clarify the definition of beef for labeling purposes, eliminate consumer confusion resulting from misbranding, and ensure that the federal government can enforce the law. Fischer says, “Beef is derived from cattle—period.” She adds the legislations will stop so-called fake-meat companies from misleading consumers about “the nutritional merits and ingredient composition of their products.” The National Cattlemen’s Beef Association applauded the introduction of the legislation. NCBA President Jennifer Houston says the bill will “allow cattle producers to compete on a level playing field.” NCBA found in a study that 55 percent of consumers did not understand that “plant-based beef” wasn’t beef at all, but instead an entirely vegan or vegetarian product. The Senate bill is a companion to similar legislation in the House. ************************************************************************************ Farm Groups Partner to Help Farmers Manage Stress Top farm organizations Wednesday announced a partnership to address high levels of stress affecting farmers and ranchers. Farm Credit, the American Farm Bureau Federation and National Farmers Union, announced the partnership that will provide training to individuals who interact with farmers and ranchers. AFBF President Zippy Duvall says the partnership will "help our members recognize the warning signs and empower them to get help for their friends." In a national Morning Consult poll commissioned by AFBF in April 2019, a strong majority of farmers and farmworkers said financial issues, farm or business problems, and fear of losing the farm, impact the mental health of farmers and ranchers, and nearly half of rural adults said they are personally experiencing more mental health challenges than they were a year ago. Research also shows that while farmers experience higher levels of psychological distress and depression than the general population, they are less likely to seek help for mental health issues. ************************************************************************************ Johnson to Retire from Role as Farmers Union President National Farmers Union President Roger Johnson announced earlier this week he will retire from his role in Washington, D.C. next year. Johnson will not seek reelection during the 2020 NFU annual convention in March, when his current term will end. NFU will elect his successor during the meeting in Savannah, Georgia. Johnson told reporters that Rob Larew, NFU’s senior vice president of public policy, is currently the lone candidate for the role. Before leading the family farm organization, he served as North Dakota Agriculture Commissioner and as president of the National Association of State Departments of Agriculture. Johnson, a third-generation family farmer from Turtle Lake, North Dakota, grew up in Farmers Union, participating in the organization's youth programs and serving as a county president and chairman of the board of a local Farmers Union cooperative. He says, "it has been my greatest honor to serve this organization and the admirable farmers and ranchers who comprise its membership." ************************************************************************************* American Royal Acquires Land for “Epicenter of Agriculture” The American Royal Association is one step closer to its goal of being the “Epicenter of Agriculture.” The organization recently acquired 115 acres in Kansas City, Kansas, following a purchase of 47 acres earlier this year. The association recently submitted its preliminary development plan country officials, which was approved this month. The one million-plus square foot complex with an outdoor plaza and arena will allow for an expansion of programming to 365 days a year. The facility features more than 800,000 square feet of indoor event space, including barn and exposition areas, three performance arenas, a large educational area, and more than 50,000 square feet of exhibit space. The American Royal has been a nationally recognized brand for more than a century. Beginning in 1899 as the National Hereford Show, the American Royal has evolved into a comprehensive season of food and agriculture activity. A ceremonial groundbreaking is expected Spring 2020, with construction beginning Summer 2020. The core complex is to be complete by winter of 2021.
| Rural Advocate News | Thursday December 12, 2019 |
Washington Insider: Hints at Delays for Scheduled Tariff Boosts Well, there’s lots going on in U.S. trade policy these days but the implications are still tough to interpret. For example, House Speaker Nancy Pelosi, D-Calif., said she would support the new NAFTA deal in in the House – less than an hour after she announced the articles of impeachment against President Donald Trump. Though a dense fog of uncertainty remains, the Times says it sees signs that the U.S. may delay scheduled increases in duties on Chinese imports – but that the decision “rests with the president who could go either way,” the report said. So, new tariffs on over $100 billion of Chinese goods are due to take effect on Sunday. While many American officials are eager to avoid the tariffs, key observers insist that no decision has been made and the President is continuing to meet with advisers this week. The United States and China announced in mid-October that they had reached a so-called Phase 1 trade agreement that would allow Chinese purchases of American agricultural goods to resume while the United States would cancel additional tariffs scheduled for Oct. 15. American officials said that future tariff increases could also be avoided if the pact were signed. Since then, negotiators have continued to grapple over the deal’s terms. The two sides remain divided over how many of the tariffs will be canceled in return for China’s trade concessions, and over the terms that will govern Chinese purchases of tens of billions of dollars worth of American agricultural products. The administration’s next scheduled tariff increase is set for 12:01 a.m. on Dec. 15 and would place a 10% tariff on $156 billion of products, including toys, smartphones and other electronics, weighing on consumers and potentially turning into a political liability for a president headed into a re-election campaign. Business groups are worried about the new levies. “We’re still in a high-stakes poker game,” Myron Brilliant, the executive vice president at the U.S. Chamber of Commerce, said. “Having another round of tariffs would be a poison pill in the context of the current U.S.-China negotiations and in the context of the global economy,” Brilliant added. “We hope both sides understand the urgency of getting an agreement finalized as soon as possible.” If President Trump delays those tariffs to allow more time for negotiations, it would be the fifth time this year that he has delayed or canceled tariffs—and could prompt criticism that China is taking advantage of the negotiating process. In addition, the significant progress this week on moving the revised North American trade deal toward a vote in Congress appears to have slowed progress toward a resolution by diverting the administration’s attention away from China, the Times said. The Times report concludes that “as the deadline nears, the December tariffs’ fate has grown particularly cloudy.” And, China apparently tried to appeal to the administration’s desire to see more farm purchases by offering a waiver on tariffs it had placed on U.S. soybeans as Chinese companies made large bulk purchases of American goods. In addition, USDA Secretary Sonny Perdue said this week during a trip to Indiana that he did not expect the new tariffs would be imposed. Also, critics continue to argue that the Phase 1 deal would do little to address America’s longer-term concerns about China’s economic practices. Reports from China this week indicate that the Chinese government had discernibly hardened its negotiating positions since President Trump and Vice Premier Liu He reached their agreement in October. That deal has attracted criticism from the more nationalistic wing of the Chinese government, especially since it lacks any U.S. pledge to roll back some of the tariffs already imposed. Since early November, Chinese negotiators have demanded that a Phase 1 deal include some tariff relief in order to make the deal “equal” – otherwise it will be one-sided, said Professor Tu Xinquan, the executive dean of the China Institute for WTO Studies at the University of International Business and Economics in Beijing. The trade ministry founded the university and retains close links to it. But China clearly has been wary of offering further concessions to offset a tariff rollback. That has stymied negotiators at least temporarily. Now, U.S. officials are telling the press that they are still waiting for China to signal its willingness to make “necessary concessions” to seal a deal. Clete Willems, a partner at Akin Gump who left the White House this year, said China appeared to be taking actions, like the soybean purchases, to persuade the administration to delay the tariffs as both sides work toward a deal. The president has a decision to make,” Mr. Willems said, “and realistically he could still go both ways.” So, we will see. Political tensions are so high just now that it is increasingly difficult to anticipate any economic decision, especially in the area of trade. As a result, the trade talks should be watched very closely by producers, especially as the scheduled deadlines approach, Washington Insider believes.
| Rural Advocate News | Thursday December 12, 2019 |
Full US Approval Of USMCA Seen In Early 2020 Signing of the updates to the U.S.-Mexico-Canada Agreement (USMCA) Tuesday by officials from the three countries was hailed by both Democrats and Republicans in Washington. The House vote on the pact is expected to come next week, with some suggesting December 19 after the House finishes its action on the articles of impeachment. Senate approval, however, is not expected until early 2020. Senate Majority Leader Mitch McConnell, R-Ky., said Tuesday that a Senate vote “will have to come up in all likelihood right after the (impeachment) trial is finished in the Senate.”
| Rural Advocate News | Thursday December 12, 2019 |
More Time To Sign Up For Trade Aid, Dairy Program USDA says the brutal weather conditions this year that have continued recently are enough to have the agency extend signup for the 2019 Market Facilitation Program (MFP 2) and the Dairy Margin Coverage (DMC) program. MPF 2 signup was to have ended December 6 and DMC enrollment for 2020 was to end December 13. USDA says enrollment will now be open through December 20. Just over one quarter of licensed dairy operations, 7,204 farms, have enrolled in DMC for the 2020 calendar year as of Dec. 9. By comparison, 82% of licensed operations, 23,164 in all, signed up for the program for 2019. Under the first two of three possible tranches of MFP 2 payments, FSA has paid $10.470 billion in MFP payments to farmers. The top five states were Iowa, Illinois, Minnesota, Texas and Kansas.
| Rural Advocate News | Thursday December 12, 2019 |
Thursday Watch List Markets In addition to weekly export sales at 7:30 a.m. CST, there will be weekly jobless claims, and producer price index reports. We will also be watching for any updates regarding ongoing trade negotiations, and of course any changes in South American weather. Weather Snow squalls will move across the northern Midwest Thursday, causing transport delays and stressing livestock. We'll also see rain and snow in the Northwest. Snow and cold will focus on northern areas through the end of the week. The Southeast will see rain on Friday.
| Rural Advocate News | Wednesday December 11, 2019 |
Pelosi Announces USMCA Deal with White House House Speaker Nancy Pelosi Tuesday morning announced a “win” for workers and Democrats, saying they reached an agreement with the Trump Administration to move the U.S.-Mexico-Canada Agreement forward. Pelosi says the agreement is “infinitely better than what was initially proposed by the administration.” Representative Richard Neal, a Democrat who helped lead the effort, says Democrats support the new agreement because they crafted the details of the improved trade pact. President Donald Trump says the agreement is “Good for everybody - Farmers, Manufacturers, Energy, Unions,” adding USMCA has “tremendous support.” The Trump administration now must send implementing legislation to the House. Neal told reporters a vote in the House isn’t likely this week, but adds “we’re close,” saying he’s hopeful for a vote possibly next week. Agriculture Secretary Sonny Perdue says the agreement “improves virtually every component” of its predecessor, the North American Free Trade Agreement. Perdue adds, “the House and Senate need to work diligently to pass USMCA by Christmas.” ************************************************************************************* Farm Groups Welcome USMCA Announcement Agriculture groups applauded the announcement by House Democrats regarding a deal with the Trump Administration on the U.S.-Mexico-Canada Agreement. In a statement, National Corn Growers Association President Kevin Ross says, “NCGA appreciates the bipartisan efforts between Speaker Pelosi, Ambassador Lighthizer and the House working group to reach an agreement.” While the announcement is a step forward, agriculture groups are calling for quick passage of the agreement. The National Chicken Council in a statement says that after a year of negotiations,” the time to act is now,” adding “We encourage swift Congressional consideration and passage of USMCA before Christmas.” American Farm Bureau Federation President Zippy Duvall says, “This is an opportunity for Congress not only to help U.S. farmers and ranchers turn the corner on trade, but also show that Washington can still get things done on a bipartisan basis.” Once the agreement is sent to Congress for a vote, Congress has 90 congressional days, 45 in the House and 45 in the Senate, to consider USMCA. ************************************************************************************* December WASDE Report Mostly Unchanged The monthly World Agriculture Supply and Demand report offered little to excite or scare markets Tuesday. As the market and trade experts expected, there was little change in the monthly figures by the Department of Agriculture, with no change to corn and soybean production expectations or yields. Trade experts say it’s likely significant updates will wait until the January 2020 WASDE report. The projected season-average farm price for corn was unchanged at $3.85 per bushel. Meanwhile, Total U.S. oilseed production for 2019/2020 is forecast at 107.6 million tons, down slightly due to a decrease for cottonseed. Soybean supply and use projections for 2019/2020 are unchanged from last month. The U.S. season-average soybean price for 2019/2020 is forecast at $8.85 per bushel, down 15 cents. The outlook for 2019/20 U.S. wheat is for decreased supplies, higher exports, and lower ending stocks. Wheat imports are lowered 15 million bushels to 105 million on a slower than expected pace to date. And, the season-average farm price for wheat was lowered $0.05 per bushel to $4.55. ************************************************************************************* GOA to Review USDA’s Emergency Watershed Protection Program The Government Accountability Office will review the Department of Agriculture Emergency Watershed Protection Program. The announcement follows a request by Senators Michael Bennet, a Colorado Democrat, and Mitt Romney, a Utah Republican. Bennet and Romney requested that the GAO focus on several specific items, including approval processes under the program, project timelines, opportunities to expand eligible projects, and agency and stakeholder views of the program. Administered by USDA's Natural Resources Conservation Service, the Senators call the program an important tool designed to reduce financial strain and help communities across the West address imminent threats following a wildfire. However, communities often face challenges when attempting to use the program to support recovery efforts, including after fires in Colorado and Utah in 2018. The GAO review, which will commence in the coming months, will lead to recommendations to improve EWP and more effectively assist communities recovering from wildfires across the West. ************************************************************************************ Farmers Union Urges White House to Replace Aromatics with Biofuels The National Farmers Union Tuesday sent a letter to President Donald Trump endorsing the Governors’ Biofuels Coalition recommendation to lower air toxic emissions caused by the use of gasoline aromatics. Following the coalition's position, the organization suggested that aromatics be replaced with biofuels, which NFU says are higher octane, burn more cleanly, and are “far better” in terms of greenhouse gas emissions, air quality, and public health. NFU is a longtime proponent of replacing toxic aromatics with ethanol, filing comments to that effect on several different rulemakings, including the Safer Affordable Fuel Efficient Vehicles Rule. In a statement, NFU President Roger Johnson emphasized the benefits of doing so and advised the administration to adopt the recommendations. Johnson says biofuels are "substantially cleaner than petroleum-based octane additives," and cost-effective and readily available. Johnson urged the administration to make the change, that would "reduce health care costs, ease compliance burdens, and provide lower-cost fuel for consumers." ************************************************************************************ Extreme Weather Leads to Silage Mycotoxin Concerns Given the extreme weather in 2019, producers and users of silage should carefully watch for molds and mycotoxins. In a company news release, Alltech says extreme weather conditions and moisture levels can reduce yields and induce plant stress, and they can also lead to future issues for the crop, including mycotoxins and molds. Mycotoxins are a concern for livestock producers, as they influence feed quality and animal safety. Samples of the 2019 corn silage from across the U.S. submitted to the Alltech mycotoxin analytical services laboratory include high levels of mycotoxins. The samples have included an average of 7.13 mycotoxins, with a range of two to 14 mycotoxins per sample. Dr. Max Hawkins, nutritionist with the Alltech Mycotoxin Management team, says, “These levels of mycotoxins found in the 2019 crop are significantly higher than the average values.” He recommends livestock producers across the U.S. should test their own corn silage to identify the levels of individual mycotoxins and the subsequent risk present to livestock health and performance.
| Rural Advocate News | Wednesday December 11, 2019 |
Washington Insider: Trade Rule Confusion Washington has hardly ever been as divided as it is today, and the debate is unusually toxic including new and old trade fights, Bloomberg says this week. In addition, this fight appears to focus on how trade disputes may be settled in the future. The background is that the United States has been systematically undercutting the WTO’s trade dispute settlement mechanism, Bloomberg reports. It has blocked new appointments to the WTO appellate body, a policy that will “effectively paralyze it on Dec. 11,” Bloomberg says. That panel is responsible for “final trade rulings” that can affect billions of dollars in commerce. Now, Bloomberg thinks, the U.S. policy has forced governments to select among four options if a dispute is to be settled: Option 1: Trade wars with tit-for-tat tariffs and other anti-trade policies; Option 2: File a WTO claim “with the knowledge that the losing party may appeal it into legal limbo;” Option 3: Launch a dispute with an understanding that neither party will appeal a WTO’s dispute ruling; Option 4: Engage in an appeal-arbitration system that replicates the work of the WTO appellate body. The U.S. administration has shown a preference for option one – unilateral tariffs instead of waiting for a WTO dispute settlement award, Bloomberg says Now, however. China is in preliminary talks to support the European Union’s backup plan for settling international trade disputes as the U.S. administration gets closer to “scuttling” the current WTO role in refereeing cross-border commerce. On Tuesday, China’s Ambassador to the WTO Zhang Xiangchen told Bloomberg that Beijing is actively working to support the EU’s vision of an appeal-arbitration model, which essentially replicates the work of the WTO’s soon-to-be defunct appellate body. Until now, only Canada and Norway have endorsed the EU’s plan. “This is not the best option” but “this is an interim solution that can help countries to deal with their disputes,” Zhang said in the interview. While the conversations are still preliminary, the plan has drawn serious interest from various other WTO members such as Australia, Argentina, Brazil, Chile, Japan and Turkey, Bloomberg said. “There has been a gradual support for this as a very unfortunate Plan B,” former appellate body member James Bacchus told Bloomberg. “Now it seems to be the best option, given all the lousy options we have left.” Trade officials concede that the second option is basically a waste of time and money and the third option isn’t much better because there’s little incentive for a defending nation to participate if they know they’re going to lose. This is why a growing number of WTO members -- except for the U.S. – are beginning to take a hard look at the appeal-arbitration approach, Bloomberg says. The model is rooted on an existing WTO rule – Article 25 of the Dispute Settlement Understanding – that permits nations to agree to a voluntary form of arbitration to settle their disputes. Under this approach, the WTO Director-General can select a panel of previously vetted former appellate body members who apply the same procedures of the appellate body to reach a final judgment. As a practical matter, WTO members who sign on to such an approach will basically undergo the same process as the current appellate body. “If enough other countries sign up to the EU proposal, it could work as a stop-gap measure that would temporarily allow the WTO to arbitrate disputes between the other 163 members,” said Chad Bown, a senior fellow at the Washington-based Peterson Institute for International Economics. “But there are downsides,” he said. “The biggest is obviously that the U.S. is unlikely to sign up, so it will not work to solve any disputes that countries have with America.” But the EU has a plan for that, too, Bloomberg says. The EU is due as soon as this week to move toward strengthening its trade-policy arsenal by allowing for penalties against nations that undermine WTO rulings by appealing them into a legal void. The plan has backing from European Commission President Ursula von der Leyen, who instructed European Trade Commissioner Phil Hogan to bolster the EU’s toolkit in international commerce. In September, EU leadership moved to upgrade its enforcement regulation “to allow us to use sanctions when others adopt illegal measures and simultaneously block the WTO dispute settlement process.” “It proposed an interim appeal arrangement for those partners who are willing to continue to resolve disputes in a binding way in respect of the WTO rules,” Hogan said in a statement. “The European Commission will soon unveil further proposals to make sure that the EU can continue to enforce its rights in international trade matters should others block the system.” So, we will see. At the current moment, the U.S. administration is claiming progress toward a trade deal with Mexico and Canada--but is facing high hurdles in talks with China and others, including the EU. In addition, it no longer has its familiar leadership role in expanding access to growing markets in several key areas, including agriculture. Still, the economic impacts of current trade policies seem less threatening to economic growth than they did only a few weeks ago. However, a number of important, well established overseas markets are involved in critical discussion that should be watched closely by producers as they continue, Washington Insider believes.
| Rural Advocate News | Wednesday December 11, 2019 |
Sen. Grassley Still Says He Has Again Been Assured On The RFS Plan EPA will finalize its plan for 2020 biofuel and 2021 biodiesel levels under the Renewable Fuel Standard (RFS) in line with the September agreement between President Donald Trump and biofuel backers and corn producers, Sen. Chuck Grassley, R-Iowa, told reporters Tuesday. Grassley indicated he had been assured about the mandates when he spoke with Office of Management and Budget (OMB) acting director Russell Vought, and he also had conversations recently with White House adviser Larry Kudlow. Contacts have indicated Kudlow has been formulating the plan. “I believe Kudlow understands why the market reacted negatively to the proposed rule,” Grassley said. “I also called OMB acting director Vought on Friday and he assured me that he would work to make sure the rule is finalized according to the agreement that was made on September 12.” The final EPA plan is currently at OMB for review with the agency planning to issue the final rule yet this month.
| Rural Advocate News | Wednesday December 11, 2019 |
USMCA Deal Reached, Shifting Focus To Ratification Months of negotiations between several parties involved finally reached the conclusion that some did not expect would happen – an agreement on altering provisions in the U.S.-Mexico-Canada Agreement (USMCA). Signed by leaders from the U.S., Canada and Mexico in November 2018, the USMCA pact already won approval in Mexico. But Democrats in the U.S. House of Representatives complained the pact did not do enough to address labor issues that they said had to be adjusted before winning their support. And perhaps more importantly, the deal has come together despite the global tensions on trade and areas like the WTO that have seen parties remain at odds. U.S. House Democrats on Tuesday claimed victory in negotiating changes to a U.S.-Mexico-Canada trade agreement to ensure better protection for workers, the environment and remove key provisions that they said would have benefited big pharmaceutical companies. But the year-long negotiations between a Democratic working group and U.S. Trade Representative Robert Lighthizer produced an agreement all parties could accept. Expectations are the pact can still come up for approval in the House yet this year, with Senate approval also expected. However, the latter could spill into the early part of 2020.
| Rural Advocate News | Wednesday December 11, 2019 |
Wednesday Watch List Markets Early in the morning there will be the Consumer Price Index and Core CPI, two indicators of inflation, and comments from the Fed regarding interest rates. We will also be looking for any additional news about the USMCA and U.S.--China trade deals. Weather Snow and rain in the northeast to middle Atlantic region will end early Wednesday. Showers in Florida during the day. Light snow or snow showers in the Dakotas late in the day. Drier elsewhere in the key U.S. crop and livestock areas Wednesday. The central Argentina corn and soybean areas will be hot for one more day before the heat wave breaks. Highs yesterday were middle 90s to low 100s F. Increased stress to these crops
| Rural Advocate News | Tuesday December 10, 2019 |
USCMA Tentative Deal Reached A deal to allow the U.S.-Mexico-Canada Agreement to move forward seemed imminent Monday, with anonymous sources telling the Associated Press a deal was reached. President Donald Trump told reporters Monday afternoon there were "a lot of strides over the last 24 hours" with unions, adding "if they put it up for a vote, it'll pass." Fox Business News first reported an agreement between Trump and Mexico, along with House Democrats, and that it could be finalized and ready for action before the House of Representatives adjourns for the year. However, details reportedly still need to be finalized, and implementing legislation must be submitted to Congress. Additionally, the House of Representatives will need to schedule a vote on the agreement. The news broke as 158 lawmakers penned a letter the House Speaker Nancy Pelosi urging her to "seize this opportunity" to create a win for America. The lawmakers say expanding agriculture exports through USMCA “will help put American agriculture back on its feet.” ************************************************************************************* Trade War Impact $42 Billion A trade organization says the U.S. trade war with China has cost the U.S. $42 billion since February of 2018. Tariffs Hurt the Heartland Monday released data showing that in October alone, Americans paid a total of $7.2 billion in tariffs, more than any other amount in U.S. history, with $4 billion of that total stemming from the trade war. Americans for Free Trade spokesperson Jonathan Gold says, "It's time the administration finalizes a deal with China to end the trade war and remove all tariffs.” Talks of a phase one agreement continue, which would include agriculture provisions, but new tariffs are planned on China starting December 15. President Donald Trump last week indicated a final overall agreement could wait until after the 2020 U.S. elections. Brian Kuehl, co-executive director of Farmers for Free Trade, says the 2020 campaign will turn to farm states, adding, “The president needs to show he can close not just a phase one deal, but a comprehensive deal,” for farmers and rural America. ************************************************************************************* China Fuels October Pork Exports, Beef Exports Down from Last Year Strong demand from China bolstered U.S. pork exports in October, while October beef exports were below the high totals posted a year ago. Department of Agriculture data, compiled by the U.S. Meat Export Federation, shows October pork exports increased 8.5 percent year-over-year to 225,300 metric tons, while export value climbed ten percent to $592 million. January-October export volume was five percent ahead of last year's pace at 2.13 million metric tons, while value increased three percent to $5.48 billion. Although still burdened by China's retaliatory duties, October pork exports to the China region reached 61,000 metric tons, up 150 percent year-over-year, while export value climbed 127 percent to $141.3 million. USMEF CEO Dan Halstrom says China’s efforts to rebuild its domestic swine inventory continue, but added, "there are still excellent opportunities for pork-supplying countries." Meanwhile, October beef exports totaled 108,000 metric tons, an eight percent decline from last year's large volume, while export value of $649.1 million was down 11 percent. ************************************************************************************ Farm Groups Plead for Biodiesel Tax Extenders A group of farm organizations is asking House and Senate leadership to extend the biodiesel tax credit. A letter sent last week to leaders of both chambers says, "we believe that Congress can, and must, pass an immediate extension before returning home at the end of the year.” The group includes 11 farm and biofuels groups, including the American Farm Bureau Federation and National Farmers Union. Since 2005, there has been a $1.00 per gallon biodiesel and renewable diesel blenders' tax credit, which was created to stimulate production and consumption of biodiesel and renewable diesel. The tax credit expired on December 31, 2017. Separately, the Petroleum Marketers Association of America says Congress must “act now to retroactively extend the credit for calendar year 2018 and through at least 2019.” The farm groups charge that since the start of the year, producers have cut back production, investments in new technologies and facility upgrades, and purchases of raw materials, because of the uncertain future of the tax credit. ************************************************************************************* Petersen Sends Letter to EPA Criticizing RFS Proposal A letter by House Agriculture Chairman Collin Peterson criticizing the Environmental Protection Agency suggests EPA's proposal to "fix" the Renewable Fuel Standard undermines the program. Peterson sent a letter to EPA Administrator Andrew Wheeler last week raising concerns about the October supplemental rule proposed by the EPA. In October, the agency submitted a supplemental proposed rule and suggested changes to the formula EPA uses to restore gallons waived through the small refinery exemptions process. Biofuels and farm groups are disappointed that the proposal doesn't fully address lost demand stemming from small refinery exemptions. Peterson says, "any action from EPA that does not uphold the integrity of the RFS is unacceptable." He claims, "The bottom line is the EPA continues to undermine the RFS at the expense of our farmers and biofuel producers. A public comment period on the proposal closed late last month. The EPA is expected to release the final rule soon, possibly on December 20. ************************************************************************************* NCBA Accepting Intern Applications for Fall 2020 The National Cattlemen's Beef Association, along with the Public Lands Council, is seeking fall 2020 policy internship applications. Positions for next fall, early-September - mid-December 2020, include public policy interns and a law clerk. The public policy internship will give students an opportunity to learn about career options and provide practical experience. From tax and trade to environmental and food safety regulations, interns will work on a variety of issues and have the opportunity to work specifically in the area of their interest. The law clerk will provide support to NCBA’s Environmental Counsel on issues relating to environmental legislation and regulations that impact beef producers. The deadline to apply for either position is March 6, 2020College juniors, seniors and graduate students are encouraged to apply. PLC Associate Director, Policy & Administration, Allie Nelson, a former NCBA intern herself, says the internships “let students get an up-close look” at how policy impacts cattle producers.
| Rural Advocate News | Tuesday December 10, 2019 |
Washington Insider: Insider Jobs and Lessons to Learn Well, the media was quite surprised by last week’s very positive jobs report and now is scrambling to interpret what it means. For example, the New York Times concedes that “conventional wisdom” was too pessimistic about how much the economy could grow before setting off inflation. In hindsight, this was a “costly mistake,” the Times said. It concludes that there are a lot of good things to say but also a few not so good things regarding the November employment numbers. The 266,000 job-growth number is a “blockbuster” even after accounting for the one-time boost of about 41,000 striking GM workers who returned to the job,” the report said. Revisions to previous months’ job counts were positive. The unemployment rate fell to 3.5%, matching its lowest level since 1969. The report also noted that the share of the adult population in the labor force ticked down and average hourly earnings “continued growing at only a moderate pace, up 3.1% over the last year. Still it said it “feels churlish” to focus on a weaker area “when the big-picture numbers are so good.” However, the Times thinks it sees a “bigger lesson” contained in the data, one that is important beyond any one month’s tally of the job numbers — and that is that the US economy is “capable of cranking at a higher level” than conventional wisdom held as recently as a few years ago. It now sees the economy as “continuing to grow well above what once seemed like its potential without inflation or other clear signs of overheating” and concludes that it’s “clearer” that the old view of its potential was an extremely costly mistake. The mainstream view held by the economics profession—including leaders of the Federal Reserve, the Congressional Budget Office, private forecasters and many in academia—was that the United States economy was at, or close to, full employment.” Looking back, the NYT said that in January 2017, for example, nearly three years ago, the Congressional Budget Office forecast a 4.7% unemployment rate as far as the eye could see, and it projected that the United States labor force would consist of 163.3 million in 2019. The jobless rate has averaged less than 3.7% through the first 11 months of the year, and the labor force now stands at 164.4 million people. The Federal Reserve likewise was too pessimistic about the potential of American workers; in projections three years ago, the consensus view of its leaders was that the unemployment rate would average 4.5% in the final months of 2019. “If that forecast had materialized, 1.6 million more Americans would currently be unemployed than actually are,” the Times said. That view also expected that the target interest rate to be around 2.9%, reflecting rate increases they believed would be needed to head off inflation. Instead, that interest rate is around 1.6% —"and you have to squint to see signs of inflation,” the Times said. If you go back even further, to the late Obama years, there was an even more pessimistic tone about the outlook for American workers embedded in the fine print of both public and private-sector forecasts. If we knew then what we know now, it would have had big implications for what seemed like sensible policy, the Times concluded. Thus, the US probably didn’t need to reduce budget deficits the way it did between 2013 and 2016 — now that we know how much untapped growth potential there was. The Fed probably didn’t need to raise rates as quickly or as much as it did. The Times also thinks that markets “seem to be getting that message.” For years, whenever there has been a strong jobs report like the one issued Friday, markets viewed it as hawkish for monetary policy — as tilting the balance toward more interest rate increases. But this time, analysts and financial markets seemed to take the big-time job growth numbers in stride, given that they weren’t accompanied by any signs of ill effects from the low unemployment rate and strong growth. Still, the Times urges caution. It notes that people still worry that this expansion, now in its 11th year, is growing long in the tooth or that we are late in the cycle. And maybe that’s right. But the biggest lesson when you contrast where the labor market stands at the end of 2019, versus where smart people thought it would stand just a few years ago, is that “there’s a lot we don’t know about just what is possible and how strong the United States economy can get.” Well, that’s a mouthful for the Times — or anybody — and it likely means that the economy certainly will bear watching in today’s turbulent times. Inflation likely is a threat in the minds of many observers even if it has been slow to show itself. Global weakness and uncertainty in trade still must be factored in — very carefully. But, good news is still good news even if it is complicated. Global market access still needs to be expanded even if that continues to be heavy, heavy lifting. These are trends producers should watch closely and carefully, as usual, Washington Insider believes.
| Rural Advocate News | Tuesday December 10, 2019 |
Groups Fighting California Rules On Animal Housing The National Pork Producers Council (NPPC) and American Farm Bureau Federation (AFBF) have filed a legal challenge to California’s Proposition 12, which imposes animal housing standards. The state’s law would force hog farmers who want to sell pork to the state that makes up around 15% of the US pork market to switch to alternative housing systems. The new rules slated to take effect Jan. 1, 2022 would prohibit the sale of pork not produced via California’s “highly prescriptive standards” under which only 1% of US pork production would qualify, according to a press release from NPPC and AFBF.
| Rural Advocate News | Tuesday December 10, 2019 |
Final EPA RFS Plan At OMB EPA’s final rule for the 2020 biofuel and 2021 biodiesel levels and how they intend to account for small refinery exemptions (SREs) has arrived at the Office of Management and Budget (OMB) for review. Biofuel supporters continue to express disappointment at EPA’s supplemental plan to account for SREs, but Sen. Chuck Grassley, R-Iowa, has continued to express hope that EPA will live up to the White House commitment on conventional ethanol under the Renewable Fuel Standard (RFS). EPA is still targeting to issue the final rule on the 2020 biofuel and 2021 biodiesel levels yet this month. Some reports indicate EPA will use “partial” waivers to address the SRE and others indicate there has been little change in the EPA compared with the proposed effort. If there are few changes, that will continue to keep this issue as a factor even once it is finalized.
| Rural Advocate News | Tuesday December 10, 2019 |
Tuesday Watch List Markets There will be an NFIB small business index. DTN will also be watching for any news regarding both the USMCA and U.S.-China trade pacts. We will also be watching the USDA WASDE report for any changes in demand in the U.S. and any production changes in export competitor countries. Weather Mixed precipitation is expected during Tuesday through the northern Delta region and just south of the Ohio river. Rain through the southern Delta and from the middle Atlantic region into the northeast U.S. Dry but much colder through the Northern Plains and Midwest regions as an Arctic air mass continues to move south and east. The East Coast states will continue to see well-above-normal temperatures during Tuesday. In South America, Argentina will see a second day with readings reaching the 90s and low 100s F increasing stress to early planted crops. Showers in Brazil mainly in and around the Mato Grosso area. No significant concerns in Brazil crop areas at this time.
| Rural Advocate News | Monday December 9, 2019 |
Last Minute Demands Further Complicate USMCA Passage Speaker of the House Nancy Pelosi has an unlikely ally in Republican Senator Ted Cruz of Texas when it comes to a last-minute push for changes to the U.S.-Mexico-Canada Trade Agreement. They’re pushing to strip the trade pact of language shielding internet companies from liability over user-generated content. The protection has come under scrutiny in Washington, D.C., as companies like Facebook, YouTube, and Twitter, come under fire for harmful content and political misinformation on their pages. Critics are arguing that putting those protections in trade deals limits Congressional ability to reconsider them domestically. However, Republican lawmakers see the effort to eliminate the language as a last chance move to delay the trade deal. Adding in a new and potentially controversial request could significantly delay the process that everyone involved repeatedly says is close to finishing up. Texas Democrat Henry Cuellar (KWAY-ar) said the U.S. put an additional demand on the table that Mexico “doesn’t want to touch.” He didn’t say what the new demand was but did say that it came about as Mexico was “pretty much almost ready to go.” ********************************************************************************************* China will Lift Some Tariffs on Some U.S. Pork, Soybean China announced plans on Friday to lift some tariffs on U.S. soybeans and pork. A CNN report says the move could be designed to take some of the heat out of the talks aimed at bringing a truce to the trade war. The Chinese finance ministry said last week it would waive taxes on some imports once companies had applied for exemptions. It didn’t specifically say which goods or how many of the goods would be exempted. Back in September, China said it would exclude some soybeans and pork products from its newest tariffs. China’s Customs Tariff Commission of the State Council says it will “dedicate a range of goods to be excluded from tariff countermeasures against the U.S. Section 301 measure.” President Donald Trump had told reporters late last week that talks with China were going well and hinted that he may not place new tariffs on Chinese goods on December 15th as planned. When asked about the new tariffs going into effect on December 15th, Trump said “We’ll have to see. Something could happen but we aren’t discussing that yet. However, we’re having very good discussions with China.” ********************************************************************************************** China, U.S. still at Odds Over Ag Purchases The Wall Street Journal reports that the U.S. and China still can’t agree on the size of future Chinese purchases of U.S. agricultural commodities. President Donald Trump wants China to commit to buying $40 to $50 billion worth of American farm goods per year, which is significantly higher than the $8.6 billion the country bought a year ago. The administration is also asking China to announce its purchase plans, which the White House says shouldn’t depend on market conditions or other Chinese trade obligations. The two countries are working to get a Phase One trade deal signed ahead of a potential 15 percent tariff increase on Chinese imports that is scheduled to begin on December 15. Trump said last week that something could very well happen with those tariffs but did say the two countries aren’t discussing that yet. The Chinese Commerce Department’s Ministry spokesman also said last week that the two sides remain in “close communication” on trade. He says that China believes relevant tariffs must be lowered if both sides can reach an agreement on the phase one deal. ********************************************************************************************* NPPC, Farm Bureau Team up to Challenge Prop 12 in California The National Pork Producers Council and the American Farm Bureau have filed a legal challenge to California’s Proposition 12. The proposition imposes animal housing standards that reach outside of California’s borders to farms across the U.S. “Proposition 12 revolves around a set of arbitrary standards that lack any scientific, technical, or agricultural basis, and will only serve to inflict further harm on U.S. hog farmers,” says Jen Sorenson, NPPC vice president. “U.S. farmers are already fighting to expand overseas market opportunities. We shouldn’t have to fight to keep our domestic markets too.” Prop 12 will force hog farmers who want to sell pork in California to switch to alternative housing systems, at a significant cost to their business. “The law was sold to California voters as a solution to improve animal welfare and food safety,” says AFB General Counsel Ellen Steen. “However, it has nothing to do with food safety and many animals will suffer more injury and illness under its arbitrary rules.” Farm Bureau says farmers are best qualified to make farm-specific and animal-specific decisions on animal care. Prop 12 will drive up costs and force smaller farmers out of business, leading to greater consolidation in the pork industry. ********************************************************************************************** White House Adviser Working on Biofuel Mandate Plan White House economic adviser Larry Kudlow is working on improving the Trump administration’s plan for bolstering biofuel requirements. Bloomberg says the move comes after ethanol boosters in politically important farm states said the current proposal doesn’t compensate for waivers that exempt some small refineries from the mandates under the Renewable Fuels Standard. Biofuel producers, corn farmers, and Midwest political leaders blasted the Environmental Protection Agency’s current approach to biofuels as inadequate. They say the EPA mandates completely ignored the terms of an agreement reached on October 1st to raise biofuel blending requirements enough to fully offset refinery exemptions. Senator Chuck Grassley of Iowa says the EPA could have the best of intentions but “farmers don’t believe it” because of the agency’s track record. Oil industry leaders say the EPA’s current proposal is illegal, arguing that it would unfairly force the larger refineries to bear a higher burden of biofuel-blending requirements. EPA is currently reviewing public comments as it prepares a final rule that will set the 2020 biofuel quotas. Kudlow’s work could lead to changes in the final rule that would ensure the final measure is more in line with what Trump gave approved in negotiations that led to the October 1st agreement. ********************************************************************************************** USDA Reminds Producers to Contact Insurance Agents about Harvest Delays The USDA is reminding producers with crop insurance are facing harvest delays to make contact with their crop insurance agents by December 10th. Farmers need to file a Notice of Loss by that date or the applicable end of their insurance period to request an extension of time to finish harvest. Once the extension gets approved, an insured producer needs to harvest the crop at the first feasible opportunity. “Farmers are certainly struggling this year because of wet weather conditions,” says Martin Barbre, Administrator of the Risk Management Agency. “Producers covered by Federal Crop Insurance that are unable to harvest on time need to contact their crop insurance agents to file a notice of loss.” The goal of filing the notice is so that crop insurance claims are settled based on the amount of harvested production. For crops like corn and soybeans, the end of the insurance period is December 10th. For other crop deadlines, farmers must make contact with their agents to find out the specific dates.
| Rural Advocate News | Monday December 9, 2019 |
Washington Insider: NAFTA and Why It Isn’t Dead Yet Bloomberg is reporting this week that uncertainty remains about the proposed new North American Trade deal and why the “original NAFTA” isn’t dead and gone in spite of numerous administration pledges to wipe it out. In the 2016 campaign, candidate Donald Trump frequently pledged to renegotiate and terminate the deal “if we don’t get the deal we want.” The 1994 agreement included the U.S., Canada and Mexico and was intended to phase out tariffs on most goods to create “the world’s largest free-trade zone,” and to “triple trade among the signatories.” Negotiations over a replacement deal were underway for more than 13 months in 2017 and 2018, and the three countries have agreed to modest changes to NAFTA and a new name, the U.S.-Mexico-Canada Agreement. However, the changes have still not been implemented, Bloomberg says. In fact, the original deal is still in effect, covering most of the $1.25 trillion in annual trade among the three countries while leaders work on the USMCA. The administration “never actually pulled the U.S. out of NAFTA,” Bloomberg says. A year ago, the three countries signed a new pact and Mexico’s Senate ratified it in June. President Trump has been pressing the U.S. Congress to approve it but House majority Democrats are seeking changes, including stronger enforcement of the stepped-up labor and environmental provisions. Canada’s Parliament has held off on ratifying the deal as talks continue. Bloomberg says that the reason why the administration disliked the agreement so much was that it integrated North American supply chains in auto manufacturing and other industries and removed barriers to foreign investment and cross-border trade in services—and so was blamed for “increasing the U.S. trade deficit and sending manufacturing jobs to Mexico.” Though economists argue over NAFTA’s actual impacts, most objective studies have found it didn’t cause major aggregate job losses in the U.S., but also “didn’t significantly boost U.S. GDP. Bloomberg and others note that NAFTA did need updating although the deal which had been in place since 1994 “couldn’t have anticipated e-commerce and digital trade.” Now, while the administration says the proposed new agreement is “altogether different”—many agree that it is quite similar. Even fellow Republicans such as Senate Finance Chairman Chuck Grassley, R-Iowa, believe that “95% of the new deal is the same as NAFTA,” Bloomberg says. Some industries would notice changes, however. For example, automakers would require more vehicle components to be made in North America with a portion made by workers earning an average of at least $16 per hour. In addition, Canada agreed to allow more imports of U.S. dairy products and both Canada and Mexico would increase the value of goods that can be imported duty-free. Bloomberg cites the U.S. International Trade Commission finding that the new deal would boost U.S. trade with Mexico and Canada by about 5% overall, resulting in a 0.35% GDP increase in its sixth year. It would also boost U.S. workers’ annual incomes by an average of $150 and increase employment by 0.12%, or roughly 176,000 jobs. Bloomberg adds that the deal also would “benefit businesses by providing increased certainty about the future, especially because it would largely exempt Canada and Mexico from future auto tariffs.” So, it appears that the deal “has momentum” but still faces hurdles. U.S. Democrats have pushed for changes on pharmaceuticals, environmental protections, labor and enforcement of the accord and have especially focused higher wages for Mexico to reduce pressure on U.S. companies to move across the border. However, there is growing concern that Mexico will come up short on the reforms expected of it, which include independent labor courts and the right to elect union representatives. Mexican officials say they’re near a deal but have balked at proposals such as unannounced labor inspections that they say would infringe on their sovereignty. As negotiations drag on, other sticking points have emerged, including the agreement’s liability shield for tech companies and the required use of North American steel and aluminum in vehicles. The administration is pushing Congress to ratify the deal by year’s end. So, we will see. These talks involve high stakes for U.S. producers who have long invested in building access to growing markets across the region. Certainly, they should be watched closely by producers as they proceed, Washington Insider believes.
| Rural Advocate News | Monday December 9, 2019 |
FERC Approves Two More Tariff Amendments In Another Bid To Boost Midwest Propane Supplies Two oil pipeline tariff amendments aimed at boosting propane supplies to the Midwest were approved by the Federal Energy Regulatory Commission (FERC). ONEOK North System and Enterprise EU Products Pipeline Company said they received requests from shippers for the changes after the start of the alternative dispute resolution (ADR) process initiated by FERC in November, the regulator said. The action was to “alleviate propane pipeline constraints in Midwest states,” FERC said. Relative to ONEOK, FERC cleared a revised pipeline transportation capacity allocation policy allowing shippers to transfer allocated capacity to other shippers through the end of this month, and to receive credit to their allocation history for barrels moved by replacement shippers. In the Enterprise TE case, the company is extending emergency transportation service of propane to the Midwest region. The Enterprise TE action will continue until canceled or modified by Enterprise TE, FERC said. “FERC continues to monitor the Midwest propane situation, and the ADR process is continuing,” the regulator noted.
| Rural Advocate News | Monday December 9, 2019 |
Agriculture Opens FY 2020 With Solid Rise In Exports U.S. agricultural exports improved to $12.08 billion in October, up from $10.3 billion in September, and the highest since they were $12.08 billion in November 2018, according to USDA’s Latest U.S. Agricultural Trade Data update. However, they were below the October 2018 mark of $12.16 billion. Imports, meanwhile, were at $10.92 billion, up from $10.08 billion in September, marking an eight straight month at $10 billion or more. They were just slightly ahead of the year-ago mark. The result is a trade surplus of $1.17 billion, down from the year-ago mark of $1.26 billion, but up from just $219.8 million in September. October and November tend to be the strongest two months for U.S. agricultural exports each FY, while imports have tended to peak in the March-May period. Imports have been at $10 billion or more in all but two months since October 2017. During FY 2019, which ended with a trade surplus of $4.6 billion, the smallest since FY 2006, only October and November saw the trade surplus above $1 billion and there were three monthly deficits registered, including a record monthly deficit of $865 million in April. USDA forecasts FY 2020 ag exports will rise to $139 billion versus the FY 2019 result of $135.5 billion, while imports are seen at a record $132 billion, taking out the prior record registered in FY 2019 of $130.9 billion. That is forecast to leave a trade surplus of $7 billion. But with imports maintaining a solid pace, the USDA forecast is far from certain at this point.
| Rural Advocate News | Friday December 6, 2019 |
Trump; China Agreement has to Work for the U.S. Ag Secretary Sonny Perdue made a recent appearance on CNBC to talk about U.S. trade negotiations with China. The secretary says President Trump wants a “phase one” deal with China that works for the United States. “The president wants to come to a deal that’s enforceable, that’s reliable, and will be consistent with what the deal says.” His appearance on CNBC happened shortly after a Bloomberg report said that the U.S. and China were edging closer to wrapping up an agreement before new U.S. tariffs go into effect December 15th on more Chinese imports. During the NATO summit this week, Trump told reporters that trade talks with China are “going well.” He made those comments just one day after saying he might want to delay a deal with China until after the 2020 presidential election. Beijing and Washington have hit each other’s goods with billions of dollars in tariffs. The moves have hit U.S. farmers especially hard. Nearly $20 billion in U.S. agricultural exports went to China last year alone. “We in agriculture are optimistically hopeful that we can conclude this,” Perdue tells CNBC. However, he reiterated administration concerns that China won’t follow through on what it promises in the agreement. ********************************************************************************************* Wisconsin Rep Asks Perdue for More Support Wisconsin Representative Ron Kind sent a letter of Ag Secretary Sonny Perdue demanding that he have a plan to provide certainty and support for family farms amidst the trade talks with China. Kind points out in the letter that the secretary refers to farmers as “casualties” of the trade war. Kind sent the letter as a deadline for new tariffs on Chinese goods is set to take effect on December 15th and after Trump suggested that waiting to settle the dispute until after the 2020 elections is an option. Kind’s home state of Wisconsin loses an average of two farms a day and is on top of the nation in terms of the number of family farmers who’ve declared bankruptcy. It’s the second-straight year that Wisconsin has led the U.S. in that dubious category. As U.S. farmers face sometimes overwhelming challenges, they’re finding export markets increasingly closed off. In the first four months of this year, Wisconsin agriculture exports dropped nearly five percent compared to the previous year. Ag exports to China dropped by 31 percent. Kind says Wisconsin taxpayers have forked over $743 million in additional tariffs since the trade war began in March of 2018. ********************************************************************************************* Settlement on Cooperatives Working Together Lifts Cloud over Dairy The National Milk Producers Federation announced a settlement agreement that would end a class-action lawsuit concerning the Herd Retirement Program that ended back in 2010. The program was administered through the federation’s Cooperatives Working Together initiative. The settlement will safeguard ongoing efforts to aid U.S. dairy producers, lift a cloud over the industry that’s lasted years, and it allows NMPF member cooperatives and the current CWT program to move forward with more certainty. The plaintiffs consisted of larger retailers and companies who directly buy butter and cheese from CWT member cooperatives. The settlement amount is $220 million in exchange for a release of all claims. Neither the NMPF nor any of its member cooperatives admit any wrongdoing as a result of the settlement. “There is no way to sugarcoat a settlement of this size, especially given that the Herd Retirement Program was a well-publicized effort designed to serve dairy producers in difficult times,” says Jim Mulhern, President and CEO of the NMPF. “It was praised by two Secretaries of Agriculture and a number of the leading members of Congress.” The plaintiffs sought damages relating to the Herd Retirement Program, which offered dairy farmers financial incentives to market their milking herds for beef. It operated between 2003 and 2010. ********************************************************************************************** USDA Opening CRP Signup on December 9th The USDA’s Farm Service Agency announced that signup for the Conservation Reserve Program will begin on December ninth. The signup period ends on February 28th for general CRP, while the signup for continuous CRP is ongoing. Farmers and ranchers who enroll in CRP get a yearly payment for voluntarily establishing long-term, resource-conserving plant species like approved grasses or trees that help control erosion. The practices also improve water quality and develop wildlife habitat on marginally productive agricultural lands. “The Conservation Reserve Program is one of our nation’s largest conservation efforts and a critical tool to help producers better manage their operations while they conserve natural resources,” says Ag Secretary Sonny Perdue. CRP currently has 22 million acres enrolled in the program. However, the 2018 Farm Bill lifts the cap on acres up to 27 million. That means many farmers and ranchers have the chance to enroll for the first time or continue their participation for another term. CRP was first signed into law in 1985 and is one of the largest private-lands conservation programs in the United States. The program has evolved over the years and provides a variety of conservation and economic benefits across the country. ********************************************************************************************** USDA will Take Seven Trade Mission Trips in 2020 The U.S. Ag Department announced it will sponsor seven agribusiness trade missions in 2020. The goal will be to diversify and grow export opportunities around the world for American farmers and ranchers. “I cannot overstate the immense value trade missions provide to the U.S. agriculture industry and our customers,” says USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney. He says trade missions help agribusinesses big and small to get their foot in the door to new markets, build strong relationships with existing and potential customers, and expand their global footprint and sales of U.S. farm and food products. “I’ve had the pleasure of leading numerous trade missions at USDA and the results overwhelmingly speak for themselves,” he adds. “In 2019 alone, six USDA trade missions enabled more than 170 U.S. companies and organizations to engage in more than 3,000 face-to-face meetings with foreign buyers.” Those engagements generated more than $78 million in projected 12-month sales. Destinations in 2020 include North Africa, the Philippines, Spain and Portugal, the United Kingdom, Australia and New Zealand, Peru, and the United Arab Emirates. ********************************************************************************************** Sheep Industry gets Predator Control Approval from EPA Environmental Protection Agency Administrator Andrew Wheeler announced the final interim decision on the registered use of sodium cyanide for predator control. The EPA worked in conjunction with the USDA’s Wildlife Services to put out a label for the predator control tool. The label will include three additional use restrictions to promote public awareness and decrease non-target impacts. Benny Cox, President of the American Sheep Industry Association, says the nation’s sheep producers welcome the decision. “We sincerely appreciate the USDA and EPA working together to ensure livestock producers will have access to effective predator control, while also increasing public awareness and transparency,” he says. “Livestock producers face heavy losses from predators, with those losses totaling more than $232 million every year.” He says producers are especially vulnerable to losses during lambing and calving. Sodium cyanide is only used under the oversight of federal or state wildlife officials.
| Rural Advocate News | Friday December 6, 2019 |
Washington Insider: Banks Can Loan to Support Hemp Production The press is fascinated by the fact that last year, Congress chose to authorize farmers to produce and market hemp — sort of. However, the process of moving that industry into the mainstream has been fraught with difficulty but that may be changing. For example, the Wall Street Journal this week wrote that banks are no longer required to report hemp growers as suspicious and cited a group of financial regulators who said “lenders are no longer required to file reports on customers who produce hemp for commercial purposes.” The Journal noted, as have many others, that “until recently, hemp production largely was banned under federal law.” Then, last year’s farm bill removed hemp from a list of federally controlled substances and directed USDA to regulate domestic production. However, there are still some controls on hemp production and banks are still required to file reports on customers in the hemp business if they suspect “suspicious” activity, regulators said. The Treasury’s Financial Crimes Enforcement Network says it will issue additional guidance after further evaluation of the USDA’s rules governing hemp production. This week, the American Bankers Association, a trade association, praised the release of the industry guidance. Even after last year’s farm bill, access to banking services has been “an ongoing problem,” according to Erica McBride Stark, the executive director of the National Hemp Association, a trade group for growers. “So, this actually should be quite helpful.” Even after hemp production became legal, it took USDA most of a year to devise rules for the industry and bank regulators were even slower to change. The restrictions on the industry had held back even Stark’s organization, a nonprofit that does not actually produce hemp. The trade group had problems getting basic services because banks were worried that they it could be receiving proceeds from a crime when it collected its members’ dues, the New York Times said. The report charged that Stark said that USDA’s rule change “had not helped. They understood that hemp was removed from the federal Controlled Substances Act but because of the paperwork that was involved, a lot of producers were just like, ‘yeah, it’s just not worth it,’” she said. Rob Nichols, the president of the American Bankers Association, a trade group, said his members had been pushing for the change for some time, and was also interested in changing rules for marijuana production. Last month, the association surveyed 1,800 agriculture-focused banks in the country and found that almost half had gotten questions from their farmer-customers about whether they would still do business with them if they started growing hemp. “We appreciate the steps regulators have taken to clarify regulatory expectations for banks, and we look forward to working with them as they develop additional guidance,” Nichols said. While the change will help businesses making clothes and other hemp products, it does not affect even the legal marijuana businesses dealing with the same problems. The federal government still considers marijuana to be illegal and even local banks have been too worried about getting in trouble to deal with them. But banks large and small have come together to support a bill in Congress, the SAFE Banking Act, that would legalize marijuana banking by stipulating that the proceeds of a state-sanctioned marijuana business would not be considered illegal under federal anti-money-laundering laws. The House of Representatives passed a version of the bill, and the banking industry is pushing the Senate to take it up. If it were to become law, it would let banks dive into a lucrative new industry that has been plagued by security concerns and is desperate for even the most basic services, like checking accounts and credit card processing. Still, it wasn’t clear on Tuesday that the change to hemp regulations would immediately influence bankers’ attitudes. Bankers say they are still reviewing the complicated licensing requirements that states and USDA have devised for hemp growers. In the meantime, growers’ hopes might still be threatened. Stark said she had heard Wells Fargo was considering offering banking services to hemp businesses, but a Wells Fargo spokesman said the bank was taking no such steps. So, we will see. It clearly has been difficult for a staid old business like agriculture to shift to support what many believed, and believe, is an illegal activity. However, if hemp production proves to be profitable, even that reluctance likely will fade into the sunset, Washington Insider believes.
| Rural Advocate News | Friday December 6, 2019 |
USDA Opens General CRP Signup And Enrollments Could Be Sizable USDA will open a general Conservation Reserve Program (CRP) signup December 9 through February 28, 2020. At the end of October, there were 21.967 million acres in the CRP, including contracts that were to expire September 30 but were given a one-year extension. Contracts on around 970,000 acres were extended, about 81 percent of acres that were eligible to be in the program for another year. Continuous CRP signup in Fiscal Year (FY) 2019 enrolled about 245,000 acres. USDA also pledged that the general signups will be held annually. That has not been the case for several years as acres enrolled in the program were very close to the maximum level allowed via the 2014 Farm Bill. Under the 2018 Farm Bill, the CRP acreage cap is increased from the current cap of 24 million acres in FY 2019, to 24.5 million in FY 2020, 25 million in FY 2021, 25.5 million in FY 2022 and 27 million in FY 2023. The decision to hold annual general signups reflects the level of CRP contracts that will expire ahead. There are contracts on 5.36 million acres set to mature September 30, 2020. That could allow for a very robust general signup given the current level of CRP acres and the contracts maturing in September 2020.
| Rural Advocate News | Friday December 6, 2019 |
China Continues to Insist on Tariff Rollbacks in Phase One Deal As close communications between the U.S. and China continue, China is making clear it wants tariffs lowered as part of any Phase 1 trade deal. "The Chinese side believes that if the two sides reach a Phase 1 deal, tariffs should be lowered accordingly," Commerce ministry spokesman Gao Feng told reporters. In Washington, China’s Ambassador to the U.S., Cui Tiankai, said the two sides are trying to resolve their differences over trade, but warned some are trying to undermine those efforts. "At the same time, we must be alert that some destructive forces are taking advantage of the ongoing trade friction (through) extreme rhetoric such as 'decoupling,' the 'new Cold War,' and ‘clash of civilizations,'" Cui said in remarks at a U.S.-China Business dinner. He said some are trying to “rebuild the Berlin Wall between China and the United States in the economic, technological and ideological fields.” He called on U.S. and Chinese companies to withstand efforts he said were aimed at spreading “hostility and even create conflict between us," as well as "fake news" about the situations in both Hong Kong and Xinjiang. Cui did not specifically talk about the status of the trade talks, but said China remains committed to expanding bilateral trade and investment between the two nations.
| Rural Advocate News | Friday December 6, 2019 |
Friday Watch List Markets Weekly jobless claims will be out in the morning, along with the Trade Deficit and Factory orders. We will also be watching for any news regarding the U.S. and China trade negotiations. DTN will also be looking at U.S. export sales to see if corn sales pick up and whether soybeans can maintain the positive sales pace. Weather Showers may occur through west-central and southeast Plains areas later Thursday and in the Delta at night. Snow may develop through the upper peninsula of Michigan during this time. Mainly dry elsewhere in the key U.S. crop areas. In areas without a snow cover this should allow for some harvesting of corn and soybeans. In South America rainfall moves north through Brazil's corn and soybean belt maintaining favorable conditions. Drier weather returns to the central Argentina corn and soybean belt. Dryness remains a significant concern in key growing areas of Argentina.
| Rural Advocate News | Thursday December 5, 2019 |
USDA Announces Final SNAP Rule A final rule making changes to the Supplemental Nutrition Assistance Program restores intent of the program, according to the Department of Agriculture. However, critics say the rule could cut benefits to hundreds of thousands of recipients, and charge that the rule ignores a bipartisan agreement in the 2018 farm bill. The change tightens work requirements for able-bodied SNAP participants without dependents. Agriculture Secretary Sonny Perdue says amid the strongest economy in a generation, the rule "lays the groundwork for the expectation that able-bodied Americans re-enter the workforce where there are currently more job openings than people to fill them." Senate Agriculture Committee Ranking Democrat Debbie Stabenow of Michigan, counters, "this rule could cause one million people to lose their food assistance, while doing nothing to help them find jobs.” The National Farmers Union says the rule “will erode food security in rural and urban communities alike.” In the announcement, Secretary Perdue says, “Government can be a powerful force for good, but government dependency has never been the American dream.” ************************************************************************************* Japan Approves Partial Trade Agreement with U.S. Japan’s Upper House of Parliament Wednesday ratified a partial trade agreement with the United States, which will go into effect on January 1, 2020. Ryan LeGrand, President and CEO of the U.S. Grains Council, notes that the agreement “solidifies trade with our second-largest corn market." The agreement immediately reduces U.S. corn and sorghum imports for all purposes to a zero-tariff level, reduces the U.S. barley mark up and includes a staged tariff reduction for U.S. ethanol and U.S. corn, barley and sorghum flour. Also, U.S. feed and food corn, corn gluten feed, and DDGS will continue to receive duty-free market access. Meanwhile, the U.S. Meat Export Federation called the agreement “one of the biggest developments in the history of red meat trade.” With tariff rates mirroring those imposed on major competitors, USMEF's forecast for 2020 is for U.S. beef and pork exports to Japan to reach $2.3 billion and $1.7 billion, respectively. Export volumes are projected to be roughly 360,000 metric tons for beef and 410,000 metric tons for pork. ************************************************************************************* Trump: USMCA Action up to Pelosi President Donald Trump told reporters Wednesday the U.S.-Mexico-Canada Agreement is on the desk of House Speaker Nancy Pelosi. Trump says Pelosi, “doesn’t have to talk to anybody,” adding she “has to put it out for a vote.” The President made the comments to the White House press pool on the sidelines of the NATO summit in London. Talk of getting USMCA on the House floor this week brought optimism the agreement could be completed yet this year. However, it seems more likely to be finalized in early 2020, as the trade pact faces several procedural hurdles. Although, some fear the agreement could get lost in the shuffle of election-year politics next year. Mexico must first approve changes to the agreement before the House of Representatives can hold a vote on the agreement. A trade official from Mexico met with U.S. Trade Representative Robert Lighthizer Wednesday, as both sides are working towards a speedy compromise. Agriculture groups continue to urge the agreement be finalized as quickly as possible. ************************************************************************************* AFBF: Trade Progress Can’t Wait The American Farm Bureau Federation says farmers can’t wait for progress on trade deals, including the U.S.-Mexico-Canada agreement and a deal with China. President Donald Trump earlier this week suggested there was no deadline to reach a final agreement with China, and that an agreement could wait until after the 2020 elections. However, a phase one agreement including agriculture provisions could still come this month. In his comments, Trump said trade aid to help farmers cope with tariffs “got them whole.” AFBF President Zippy Duvall said in a statement that while the payments to farmers provide critical support, "trade aid payments are not making farmers whole." Duvall says a trade agreement with China's must be a priority, adding further delay in reaching an agreement "would make it hard for struggling farmers to hold on in the face of rising bankruptcy rates." Duvall also says passing USMCA would “send a message to the rest of the world that we are back in the game” of global trade. ************************************************************************************ Bankers Association Welcomes Hemp Banking Regulations The federal government this week released banking guidance for the finance industry related to hemp producers. The American Bankers Association says the guidance makes clear that banks are not required to file Suspicious Activity Reports on hemp producers operating under an approved federal, state or tribal license or plan. The guidance also states bank customers are responsible for complying with regulatory requirements, not the banks. The guidance came following an interim final rule in October from the Department of Agriculture, which provided a framework for how USDA will approve regulatory plans from states and tribes that wish to oversee hemp production, as well as a federal plan to license producers in areas without approved local plans. Federal regulators said they would issue further guidance after reviewing the USDA rule. While the 2018 farm bill reclassified hemp as a legal agricultural commodity, significant questions remained, and ABA encouraged regulators to provide additional clarity on banks' ability to serve hemp producers and hemp-related businesses. ************************************************************************************ Grain Elevators Facing Tighter Margins, Revenue Pressures in 2020 Grain elevators face significant challenges in the year ahead as they buy basis on corn, soybeans and wheat at the highest levels seen in years, according to a new report. CoBank reports basis for the three major grains is significantly tighter across the country from strong end-user bids, limited pipeline supplies, and lack of farmer selling amid an uncertain fall harvest. A CoBank researcher says, “grain elevators are being compelled to offer farmers a range of incentives to sell bushels,” including lower rates on storage, free delayed pricing and free grain drying, all cutting into elevator margins. Grain quality issues resulting from high moisture at harvest and frost damage on immature crops will also raise management costs for elevators, potentially resulting in greater losses to shrinkage and spoilage. A propane supply shortage in some regions is also driving up the cost of drying grain. However, grain elevators also have an opportunity to improve margins in an otherwise stressful year, as basis will likely soften as more bushels come to market as harvest operations conclude.
| Rural Advocate News | Thursday December 5, 2019 |
Washington Insider: Technical Basis for Ag Trade Aid Criticized The fact that efforts to compensate producers for the impacts of the trade wars with China and others are controversial likely is no surprise to most observers — the 1980 efforts to compensate producers for the Carter administration’s embargo on shipments of commodities to Russia were a political disaster. So it likely was expected to be a challenge to find a “just right” level for such payments this time. That appears to be the case, Bloomberg is reporting. It says that the President’s $28 billion farm bailout “may be paying many growers more than the trade war with China has cost them.” Bloomberg says it has found “six academic studies that conclude that the USDA’s calculations “overshot the impact of the trade conflict on American soybean prices.” The result likely will add to criticism that the bailout has generated distortions and inequalities in the farm economy. The dispute is involving big names in ag economics. For example, “it’s clear that the payment rates overstate the damage suffered by soybean growers,” Joseph Glauber said. He is USDA’s former chief economist and published a review of the research in late November. “Based on what the studies show, the damages were about half that.” The academic research has focused on soybeans in part because the crop has been the most visible target of Chinese retaliation and overall received the most trade aid. But USDA’s calculation method likely overstates the conflict’s financial impact on most other farm products, as well Glauber, now a senior fellow at the International Food Policy Research Institute, told Bloomberg. The divergence doesn’t necessarily mean a bonanza for American farmers, who are being financially squeezed on other fronts, including a global commodity glut that is depressing prices and a year of wild weather that is damaging crop yields. Also, the trade conflict risks long-term loss of market share for U.S. producers as overseas customers build relationships with replacement suppliers. Neither the academic nor the USDA estimates take potential future market losses into account. “You’re ruining a huge export market,” said Yuqing Zheng, an agricultural economist at the University of Kentucky. “Longer term, we don’t know for sure what the impact will be.” Still, a team Zheng led estimated the trade conflict depressed U.S. soybean prices by only 36 cents per bushel in its first year, a period in which the bailout program paid soybean growers more than four times that: $1.65 per bushel, Bloomberg said. The program is encountering other flak, as well. For example, Senate Democrats reported in November that the trade aid program favors large producers over smaller ones. And an advocacy group, the Environmental Working Group, released a study that asserted big farms so far have been the main beneficiaries of the billions of dollars in aid payments. Still, USDA appears willing to emphasize the current program’s positive impacts. It said last week that it expects net farm income to rise more than 10% this year to $92.5 billion “with government aid accounting for all of the increase in profits.” The trade aid, particularly for soybeans, largely goes to the president’s political supporters, Bloomberg said and notes that he has maintained overwhelming backing from them. Glauber estimates more than half of the direct payments under the USDA’s market facilitation program cover soybeans. The apparent over-payment stems from the method the USDA uses to compute trade damages. The department forecast the overall price impact of punitive tariffs China and other nations imposed on U.S. farm products without considering potential sales in alternative markets. For example, as China bought more soybeans from Brazil, other buyers stepped in to purchase more soybeans from the U.S. in some cases, replacing product they had previously bought from Brazil. “A broader analysis like some of these show the beans go elsewhere,” Glauber said. “They don’t just go into storage. Some of them go to Europe. Some of them go to other uses. We ended up crushing a lot more soybeans in 2018 than expected. We exported more vegetable oil, more protein meal. All of that mitigates the price impact.” Robert Johannson, the USDA’s chief economist, said the department decided to base trade aid on a projection of “gross” trade losses rather “net” losses primarily for consistent treatment of producers of diverse farm products affected. It’s harder to isolate net trade impact for specialty crops such as pecans or almonds than for major commodities such as soybeans, he said. “We need to be pretty sure whatever method we use is consistent across all commodities,” Johannson said. USDA officials also concluded after consulting with U.S. trade negotiators that there was an advantage to using the gross damages method because it is the basis the country uses for its negotiations. The USDA has boosted its trade damage estimate for soybeans in this year’s aid program, at $2.05 per bushel, a figure a number of analysts say still exceeds their estimates of impact in the period. This year’s payment is higher because the USDA decided to calculate the damage based on export sales over the past 10 years; last year’s payment was based on a comparison with the prior year. So, we will see. Glauber and several of the other critics of the program’s management are high-profile professionals and their criticism certainly will attract attention, although the current “fog” of the policy wars makes it very hard to focus on criticisms, let alone for advocates to react to them. Whether or not the economists’ views now emerging have much impact on the program’s technical design is difficult to anticipate, especially amid so many tough economic and political controversies. However, the amounts involved are significant and will be watched closely by budget hawks — and should be followed closely by producers as program decisions are debated, Washington Insider believes.
| Rural Advocate News | Thursday December 5, 2019 |
Government Bank Regulators Give Approval For Banks To Serve Hemp Companies Federal regulators gave banks the go-ahead to serve industrial hemp customers without any enhanced anti-money laundering reporting requirements. The Federal Reserve, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network said in guidance that banks would no longer have to file suspicious activity reports just because they conduct transactions or other services for hemp-related businesses. Banks had been slow to serve industrial hemp-related businesses despite the cousin to marijuana being removed from federal controlled substance scheduling in the 2018 Farm Bill. There was uncertainty over whether hemp would be subject to the same types of robust reporting requirements as marijuana.
| Rural Advocate News | Thursday December 5, 2019 |
Approval by Japanese Diet Clears Way for January Implementation of Trade Deal with US Japan’s Diet, their upper house of parliament, has approved the limited trade deal reached with the U.S. that will cut tariff levels on farm and industrial goods. The lower house of parliament cleared the plan last month. No U.S. congressional approval of the deal is required. This now paves the way for the deal to be implemented starting in January. Agricultural provisions in the pact are the highlight for the U.S. side, while Japan insists that the U.S. has committed to remove tariffs it has in place on Japanese autos and auto parts, with the two sides to embark on negotiations on the time frame for such an action. As for the economic impacts of the deal, Japan’s Cabinet Secretariat indicated it would boost real GDP by 0.8%, with that expectation based on the assumption that existing tariffs on Japanese car exports to the U.S. would be removed. Japan’s agricultural production was forecast to fall between 60 billion-110 billion yen ($552 million-$1 billion), according to the estimate. For the U.S., the deal will result in tariffs being either lowered or removed on $7.2 billion in U.S. agricultural products like beef, pork, wine and cheese. The accord largely sets the tariff levels for U.S. market access in Japan at those that would have been put in place had the U.S. remained in the Trans-Pacific Partnership (TPP) agreement that has since been finalized between the 11 countries that were part of the TPP. That pact is now the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
| Rural Advocate News | Wednesday December 4, 2019 |
Trump: No Deadline for Final China Trade Deal In a flurry of meeting with reporters Tuesday in London, President Donald Trump says he has no deadline for finalizing a complete trade deal with China. China and the U.S. are still working to reach a phase one agreement, with an unofficial deadline of December 15, but an overall agreement may extend beyond the 2020 elections. Trump told reporters, "In some ways, I think it's better to wait until after the election.” Trump says China wants to reach an agreement, adding, “the China trade deal is dependent on one thing: Do I want to make it?” Trump claims he is doing “very well” in the talks with China. The President also pointed out the $28 billion in trade aid given to U.S. farmers, with "many billions" leftover, adding about the funds, “that got them whole.” China wants Trump to remove tariffs in reaching a phase one agreement that also includes $40-$50 billion in purchases of U.S. agricultural products over two years. ************************************************************************************* November Ag Economy Barometer Released The Purdue/CME Group Ag Economy Barometer rose in November for the second month in a row, climbing to 153, 17 points higher than in October when the index stood at 136. This month’s rise in the ag economy sentiment index left the barometer tied with July for the highest reading of 2019. Once again, the rise was driven by improvements in farmers’ perceptions of both current economic conditions, and their belief that conditions will improve in the future, with the biggest boost coming from improved views of current conditions. Producers in November became much more confident that the trade dispute with China will be settled soon. On the November survey, 57 percent of respondents said they expect a resolution soon, up from 42 percent in October. Additionally, 80 percent of respondents now say they believe the trade dispute will end in a beneficial outcome for U.S. farmers. The index is based on a survey of 400 agricultural producers on economic sentiment each month. ************************************************************************************* NCBA Staff Directed to Work With USDA to Verify Beef Origin Labeling Claims The National Cattlemen’s Beef Association executive committee unanimously approved efforts to work with the Department of Agriculture to address geographic origin statements. NCBA is firmly opposed to mandatory Country-of-Origin labeling and is seeking solutions which “will resolve the concerns of beef producers,” while protecting commerce and meet trade obligations. Specifically, NCBA is Looking at Food Safety and Inspection Service labeling requirements and verification procedures in place for beef products labeled as “Product of the U.S.A.,” “Made in the U.S.A.,” or similar origin claims. NCBA CEO Colin Woodall says that while many beef products currently advertised, marketed, or labeled as ‘Product of the U.S.A.' are “likely compliant with current FSIS regulations, the potential for consumer confusion exists.” NCBA believes that beef labels with voluntary country-of-origin labeling marketing claims should be verified through existing USDA framework that is market-based and respects international trade commitments. The organization says it is critically important that any changes not trigger retaliatory tariffs from Mexico or Canada that have already been approved by the WTO. ************************************************************************************* FDA Nomination Heads to Senate Floor With NMPF Hopeful for Progress on Fake Milk The Senate Health Committee Tuesday advanced President Donald Trump’s nomination to lead the Food and Drug Administration to the full Senate. The committee sent the nomination of Stephen Hahn as FDA commissioner to the full Senate for final confirmation, which the dairy industry says represents another step towards greater transparency in the use of dairy terms in the marketplace. The National Milk Producers Federation is eager to see Hahn take the FDA role, as Hahn voiced his support in his confirmation hearing last month for "clear, transparent, and understandable labeling for the American people," when asked about dairy imitating products using dairy terms. Jim Mulhern, President and CEO of NMPF, says, "It is long past time for the FDA to begin enforcing its own standards." Current FDA standards make "clear that dairy terms are reserved for real dairy products, not plant-based imitators,” according to Mulhern. The organization, which has been speaking out on plant-based imitators for four decades, noted encouragement by recent FDA attention to the issue. ************************************************************************************ USCA Urges Review of Marfrig Global Foods' Acquisition of National Beef The United States Cattlemen's Association Tuesday submitted a request seeking an investigation of Marfrig Global Foods' “near-acquisition” of the U.S.-based National Beef Packing Company. The organization sent the request to U.S. Treasury Secretary Steven Mnuchin (Muh-noo’-chin). The Brazilian-owned Marfrig Global Foods announced last week that it raised its stake in the U.S.-based National Beef Packing Company from 51 percent to 81.7 percent. In 2018, Marfrig acquired a majority stake in National Beef Packing Company, but USCA says this recent announcement means that Brazilian interests will almost wholly own the U.S.-based company. The association is "firmly opposed to the increasing consolidation of the meat-packing sector and foreign ownership of U.S. agricultural interests." USCA wants the Committee on Foreign Investment in the United States to investigate the matter, and demands a full review of Marfrig Global Foods’ acquisition of U.S. companies, and calls for those outcomes to be explicitly written out and publicly published. ************************************************************************************ USDA to Conduct the 2019 Census of Horticultural Specialties The Department of Agriculture’s National Agricultural Statistics Service will conduct the 2019 Census of Horticultural Specialties this winter. USDA says the report will provide a comprehensive picture of the U.S. horticulture industry. Survey codes will be mailed this month to more than 40,000 horticulture producers to respond online. Collected just once every five years, the Census of Horticultural Specialties is the only source of detailed production and sales data for U.S. floriculture, nursery, and specialty crop industries, including greenhouse food crops. NASS Administrator Hubert Hamer (hay-mer) says, “Responding to this census is the best way for growers to help associations, businesses, and policymakers advocate for their industry.” The 2019 Census of Horticultural Specialties results will expand the 2017 Census of Agriculture data with information on horticultural crop production, value of products, square footage used for growing crops, production expenses, and more. The deadline for response is February 5, 2020. Results will be available December 2020. For more information about the 2019 Census of Horticultural Specialties, visit www.nass.usda.gov.
| Rural Advocate News | Wednesday December 4, 2019 |
Washington Insider: More Spending Fights While there are more and more trade policy issues emerging almost every day and the president appears to be actively downplaying expectations for a deal with China in the near future, concerns about next year’s spending bills are re-emerging and attracting more attention. To no one’s surprise, progress on funding the government for the year just beginning seems to be once again bogged down on the issue of funding for the border wall. For example, Bloomberg is reporting this week that lawmakers and the president may need a deal on border wall funding before any of the 12 fiscal 2020 spending bills can become law. This is widely seen as a “tall task” as the Dec. 20 deadline to fund the government approaches. President Donald Trump’s request for $8.6 billion in border wall funding remains the key sticking point in negotiations, lawmakers told Bloomberg — although appropriators have made progress recently, as the House and Senate Appropriations chairs agreed to top-line spending figures for the 12 bills. And appropriators have started work on bicameral versions of the bills, but it is seen as unlikely that the President will sign anything into law before there’s an agreement on the border wall, Senate Appropriations Military Construction-VA Subcommittee Chairman John Boozman, R-Ark., said Monday. “The wall funding has to be resolved before I think anything much gets moved,” Boozman said. A pairing of the two largest spending measures, covering Defense and Labor-HHS-Education appropriations, is possible “but I think they get held hostage” until border wall funding is settled, Boozman said. The President requested $5 billion for border fencing in the Homeland Security spending bill and $3.6 billion in the Military Construction-VA bill. Lawmakers will also need to come to an agreement on limitations to the president’s ability to reprogram additional funds. Because of the difficulty of those debates, those bills will likely be among the last completed, Boozman said. It’s one of the relatively few hot-button issues that subcommittee leaders won’t negotiate, instead kicking it up to either full committee leaders or members of congressional leadership to sort out with the administration, he added. He expressed hopes those discussions start this week. Senate Appropriations Chair Richard Shelby, R-Ala., also raised the prospect of a Defense and Labor-HHS-Education package, but said there needs to be “some understanding” on the border wall. “I think we’d have to have some kind of agreement or Trump wouldn’t sign it,” Shelby said. Senate Appropriations Homeland Security Subcommittee Ranking Member Jon Tester, D-Mont., said the border wall talks probably should be completed before lawmakers send a spending package to the president’s desk, but he’s not sure if it’s an absolute necessity. Sen. Brian Schatz, D-Hawaii, ranking member of the Military Construction-VA Subcommittee, said that depends on the president. Senate Appropriations Vice Chairman Patrick Leahy, D-Vermont, said he’d like to finish all the bills by December 20 but criticized the White House for being inconsistent about what they want, a complaint he’s repeated for months as spending talks have dragged on at a slow pace. White House Legislative Affairs Director Eric Ueland was in the Capitol Monday to meet with lawmakers on topics that included appropriations, he said. While Democrats oppose any funding for the border wall, they are pursuing their top priorities in the appropriations bills. Senate Minority Leader Chuck Schumer, D-N.Y., said his caucus’s top priorities include “significant resources to combat the opioid and gun violence epidemics, significant investment in infrastructure, significant investment in child care,” Violence Against Women Act funding, and “funding to secure next year’s presidential elections.” Senate Democrats also “strongly oppose the president stealing money from our military families to pay for this border wall,” Schumer said on the Senate floor yesterday. While there are other pressures, many of these seem to be resolved within committees. For example, the Senate Appropriations Committee approved a Commerce, Justice, Science bill that included $70.8 billion in discretionary spending, the same amount as proposed by the Senate Democrats for those programs. However, the House Democrats proposed $73.9 billion. In response, Sen. Jeanne Shaheen, D-N.H., said that while program funds “are low and while the bicameral allocations agreement provides less for them than many Democrats wanted, “she’s happy we have an agreement. Obviously I would like to have more money in it. I think it gives us a place to continue to go forward. We are in discussions now over what is going to have to come off, given the change in the number.” So, we will see. There have been whispers for some time about negative impacts of the ongoing and threatened trade fights on economic activity, and at least some of these appear to be resurfacing once again this week—and they are increasing pressure on the Fed to “do something” to bolster growth,” and to make sure that government operations can continue without interruption. These increasingly appear to be broadening, high stakes fights that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday December 4, 2019 |
House Extends Schedule By A Week House Majority Leader Steny Hoyer, D-Md., announced Monday that the House will be in session the week of December 16. Previously the chamber was to be in session only portions of the first two weeks of December. First votes of the week are expected to occur early in the day on Tuesday, December 17, with last votes of the week expected on Friday, December 20, Hoyer said in a message to House members. "Exact timing of last votes for the week will be announced at a later date.” The move is not a surprise given that there is now a December 20 deadline for lawmakers to take action to keep the government funded and this also opens the door for action on the U.S.-Mexico-Canada Agreement (USMCA) to see action in the House. Hoyer mentioned several weeks ago the chamber could be in session longer than the original departure date of Dec. 12.
| Rural Advocate News | Wednesday December 4, 2019 |
Grassley: USMCA Deal Needed This Week For Year-End Ratification If a deal on the U.S.-Mexico-Canada Agreement (USMCA) is not reached by the end of this week, “I do not see how the USMCA can be ratified in the year we are in,” Sen. Chuck Grassley, R-Iowa, said on AgriTalk radio and on the Senate floor. “By all accounts, the deal is close,” Grassley said. “I urge House Democrats to act quickly and be reasonable so that we can finally deliver certainty on this issue to the American people.” Grassley said he has recently been in touch with both House lawmakers and members of the Trump administration. He said once the agreement is in place between House Democrats and the administration, the process of getting the legislative language to Congress and consideration of the pact in both the House and Senate could happen in a relatively short timeframe.
| Rural Advocate News | Wednesday December 4, 2019 |
Wednesday Watch List Markets A private estimate of U.S. job growth is due out at 7:15 a.m. CST Wednesday, a warmup for Friday's unemployment report. The U.S. Department of Energy releases weekly energy inventories at 9:30 a.m., including ethanol. Weather remains of interest with unharvested corn still in fields and trade comments provide daily entertainment with no agreement yet. Weather Dry conditions will again be in place over all primary crop areas Wednesday. Temperatures will be seasonal north and seasonal to above normal south. This combination favors transportation and livestock and late harvest.
| Rural Advocate News | Tuesday December 3, 2019 |
Hints of El Nino in Early Winter Just a couple weeks ago, it was noted how the Pacific Ocean was officially absent of either El Nino (warm) or La Nina (cool) sea surface temperature and barometric pressure conditions. And, the prospects for the winter 2019-20 season would more likely be dependent on more intermediate-term features. That scenario may indeed play out. However, recent measurements of both temperature and barometric pressure in the Pacific basin are at least worth noting for strong resemblances to a weak El Nino event. Sea surface temperatures at the equator in the Pacific Ocean show several pools of water with between 1 degree Celsius and 2 degrees Celsius above normal, going across the ocean from the coast of Ecuador and Peru in South America to the East Indies. When the water temperature is a sustained 0.8 degree C above normal, an El Nino event is indicated. At the same time, the atmospheric fingerprint of either El Nino or La Nina, the Southern Oscillation Index (SOI), is around a minus 10.0 reading on the 30-day moving average, and has a 90-day moving average of around minus 9.0. A value of the SOI at minus 8.0 is the threshold for El Nino on this measurement -- and research done on the influence of El Nino on weather patterns in the U.S. Midwest by Iowa State University shows that the 90-day SOI reading of minus 8.0 or lower indicates that a given El Nino event is robust enough to affect the U.S. Midwest weather pattern. This set of conditions will be interesting to keep track of through the winter season. When El Nino is in effect during the winter, the weather pattern over the northern U.S., Western Canada, and Alaska, tends to be warm and dry. In contrast, the southern tier of the U.S. has a cooler and wetter pattern. If the northern warmer and drier trend indeed develops, even for at least part of the season, there may be an opportunity for the final leg of the much-delayed 2019 corn harvest to get done. It would also, perhaps, dial back the prospect of winter moisture loading up to the point of enhancing spring flood threat quite as much as feared during the late-fall time frame. At the same time, higher chances for precipitation in the southern U.S. could improve drought conditions in the Southwest, along with offering better moisture for crop areas of the southwestern Plains ahead of spring 2020. So far, the winter forecast setup of a warm first segment of the season is verifying. There, of course, are still 11 weeks to go through the rest of the season.
| Rural Advocate News | Tuesday December 3, 2019 |
USMCA Deal Could Emerge This Week A final agreement on the U.S.-Mexico-Canada Agreement is within days, according to some in Washington. A Mexican trade official last week told reporters Mexico was expected to approve changes to the agreement this week, which could then set up a vote in Congress. The official said, “maybe days, so maybe sometime next week,” regarding timing, according to Politico. The comments followed a meeting with Canada’s Prime Minister, Justin Trudeau (true-doh), and Deputy Prime Minister Chrystia Freeland. A vote doesn’t mean the deal can be completed still in 2019, but would mark significant progress to finalizing the trade pact within the next few months. USMCA is one of many legislative items on the agenda this month, as Congress must also yet again work towards funding the federal government. Lawmakers may also consider two farm labor bills, and provisions regarding biodiesel tax credits, as part of a broader energy bill. Meanwhile, the House of Representatives continues its impeachment investigation this week in the House Judiciary Committee. ************************************************************************************* Ross: Ball in China’s Court on Trade Trade negotiations with China continue as the U.S. and China seek to wrap up a phase one agreement, promised two weeks ago. U.S. Commerce Secretary Wilbur Ross told Fox Business News, "the ball is in China's court," in an interview Monday. He says the talks are making progress, but described the negotiations as "one step forward, one step backward." If nothing happens before December 15, President Donald Trump plans to move forward with a round of tariffs on China, as Ross called the date a "logical deadline." China wants the U.S. to roll back tariffs in making the agreement. Meanwhile, Ross again confirmed China promised $40-$50 billion of purchases of U.S. ag products as part of the agreement. China was a near $20 billion market for U.S. agriculture before the trade war began. However, that market has dropped roughly 50 percent since the trade war began, as retaliatory tariffs by China focused on U.S. agricultural products. ************************************************************************************* Trump Imposing Tariffs on Brazil, Argentina President Donald Trump Monday announced new tariffs on Brazil and Argentina, citing harm to U.S. farmers. Trump says the tariffs on steel from Brazil and Argentina are in response to the “devaluation of their currencies.” Speaking to reporters on the White House lawn before departing for the NATO gathering in London, President Trump stated, “Our steel companies will be very happy, and our farmers will be very happy.” Trump says the currency devaluation is "very unfair" to U.S. farmers and manufacturers. Brazil and Argentina are serving as alternative markets of soybeans for China, allowing China to avoid tariffs on U.S. agricultural products stemming from the tit-for-tat trade war between China and the United States. The United States is the top soybean-producing country in the world, followed by Brazil, Argentina and China. President Trump also called on the Federal Reserve to "likewise act " against all countries that are takin advantage of a strong U.S. dollar. ************************************************************************************* BP, Bunge, Merge Brazil Sugar and Ethanol Operations British oil company BP and U.S. commodities group Bunge Monday announced the completion of a deal to combine sugar and ethanol operations in Brazil. The partners call BP Bunge Bioenergia a leading company in the sugar, ethanol and low carbon bioelectricity market in Brazil. The deal creates the world's second-largest cane processor, according to Reuters. The 50-50 joint venture will manage 11 plants in five Brazilian states, and include capacity to crush 32 million metric tons of sugar cane annually. First announced in July, the Monday announcement indicates the partnership obtained all needed regulatory approvals. The sugar processing season in Brazil is coming to an end, with many mills stopping processing efforts. The new joint venture between BP and Bunge will target joint operations to begin during the next sugarcane season, which starts in April. The joint venture also focuses on ethanol, as demand in brazil is growing ahead of a new federal program next year to boost the use of biofuels in Brazil. ************************************************************************************* Canada Ag, Propane, Seeks Priority in Resuming Normal Rail Operations Amid the fallout of an eight-day CN Rail strike, Canada is facing similar propane woes as seen in the Midwest United States. Agriculture groups, along with the Canadian Propane Association, are asking for their products to take priority above other shipments as the railway works to get trains moving. However, the rail operator has stated no product would take priority. The Canadian Propane Association in a recent statement said, “the propane industry is now facing significant logistical challenges of getting the supply chain back to normal.” The strike occurred as harvest season ended and farmers, along with grain companies, seek to ship products. The Canadian Federation of Agriculture last week said the delays in rail service have resulted in significant costs for farmers. The group says the strike came at “the worst possible time” for farmers. However, the organization says, “we can express relief that a resolution was found, and these delays and losses are not continuing to mount.” ************************************************************************************ USDA Announces Fellowships to Develop the Next Generation of Agriculture The Department of Agriculture Monday announced fellowship opportunities connecting agency resources with faculty and staff at land grant and other universities. The USDA Office of Partnerships and Public Engagement made the announcement, which seeks to connect participants to USDA and other federal resources while focusing on student development. The fellowship is available for faculty and staff at Hispanic Serving Institutions, 1994 Tribal Colleges and Universities, and 1890 Land-Grant Universities. Participants in the program will receive access to long-term collaboration opportunities, and then share what they learned with students and colleagues at their home institutions. Each program offers opportunities for Education Fellows and Science Fellows. Education Fellows participate in a week-long program in Washington, D.C. scheduled to start June 15 and end on June 19, 2020. Science Fellows participate in a two-week program, consisting of one week in Washington, D.C. and a second week at a USDA research location, ending on June 26, 2020.
| Rural Advocate News | Tuesday December 3, 2019 |
Tuesday Watch List Markets There are no official reports on Tuesday's docket. With snow in the northern Corn Belt and dry weather expected across the central U.S. this week, attention will be given to the remaining row crop harvest. Any trade news concerning China will also be noticed, but prices may not show much response until an actual agreement is at hand. Weather Dry conditions will cover all primary crop areas Tuesday. Temperatures will be near to below normal north, central and southeast, and above normal southwest. This combination is favorable for livestock and transportation, along with offering some prospects for late harvest progress.
| Rural Advocate News | Monday December 2, 2019 |
EU Parliament Approves Increased U.S. Beef Access It was a happy Thanksgiving for U.S. beef producers. The European Parliament voted last Thursday to approve a plan that grants the U.S. a country-specific share of the European Union’s duty-free, high-quality beef quota. The agreement was originally signed back in August. The U.S. Meat Export Federation was pleased to hear of the approval. “Approval by the European Parliament keeps this agreement on track to be implemented early next year,” says USMEF President and CEO Dan Halstrom. “That’s outstanding news for the U.S. beef industry and our customers in Europe. Lack of capacity in the duty-free quota has been a source of frustration on both sides of the Atlantic.” He says a U.S.-specific share of the quota will help to make sure that U.S. beef can enter the European Market 52 weeks a year, without any delays or interruptions. The EU is one of the highest-value destinations in the world for American beef. Consistent access will not only benefit U.S. beef producers and exporters but also European importers and their clients. USMEF says in a release that it “thanks the U.S. Trade Representative and the USDA for negotiating the agreement and securing its approval.” ********************************************************************************************* USMCA, U.S.-China Deal Pushing Forward Both the U.S.-Mexico-Canada Agreement and a phase one agreement of a deal between the U.S. and China appear to be slowly edging forward. The Hagstrom Report quotes House Speaker Nancy Pelosi as saying, “We are within range of a substantially improved agreement for America’s workers. Now, we need to see our progress in writing from the trade representative for a final review.” The Trump Administration says that U.S. Trade Representative Robert Lighthizer will provide a written agreement to Congress this week. Trump is continuing to push House Democrats to bring the agreement up for a vote. “House Democrats have insisted that hard-working Americans need more from the USMCA than just the same broken NAFTA with better language but no real enforcement,” Pelosi says. “It still left American workers exposed to losing their jobs to Mexico.” Meanwhile, President Trump says the phase one deal with China is “close.” At the same time, he also says the U.S. is monitoring the situation in Hong Kong. “We’re in the final throes of a very important deal,” Trump says. “It’s going very well, but at the same time we want to see things go well in Hong Kong.” Trump’s comments last week came just hours after a phone call between the Chinese Vice-Premier, USTR Robert Lighthizer, and Treasury Secretary Steven Mnuchin (Muh-NOO-chin). ********************************************************************************************* Farmers for Free Trade Launches New USMCA Ad Campaign Farmers for Free Trade, a bipartisan coalition supported by America’s top ag and business groups, announced a new ad campaign promoting quick passage of the U.S.-Mexico-Canada Agreement. The ad campaign launched with a $300,000 advertising blitz in more than 20 Congressional Districts. The ads focus specifically on why the USMCA is a badly needed victory for American agriculture. The 30-second radio spots feature American farmers who personally advocate for passing the agreement. The campaign also includes digital ads as well. The initial ad campaign will focus specifically on the home districts of many Democratic members of the House of Representatives. Those Democrats represent districts that have a high concentration of farmers and ranchers that would benefit from the USMCA. Farmers for Free Trade says those legislators are a very important part of making the case for the agreement and getting it to the finish line. Former Arkansas Senator Blanche Lincoln is a spokesperson for Farmers for Free Trade. She says, “With so many new Democratic members of Congress from districts with agricultural roots, they’ll have to be the ones to make the case that the agreement is vital for their farmers.” Farmers for Free Trade Co-Executive Director Angela Hoffmann says farmers are growing more and more frustrated by the delay in approving USMCA. ********************************************************************************************** Farm Income Rising in Part Because of Aid In spite of a challenging 2019, farm earnings are expected to rise this year by 10 percent. However, nearly one-third of producers’ net farm income is a result of crop insurance and direct government payments, which does include President Trump’s trade aid. An Agri-Pulse report says net farm income this year is projected to jump by $8.5 billion compared to last year, coming in at $92.5 billion. The USDA’s Economic Research Service says approximately 31 percent of that income is due to crop insurance benefits and government payments. Net cash farm income, which is another way to measure a farm’s profitability, is projected to reach $119 billion in 2019. That’s a jump of 15 percent compared to 2018. Commercial farms at which corn is the primary crop are projected to have net cash farm income around $206,000 this year, a 20 percent increase from 2018. Poultry is the only agricultural sector that’s projected to have a net decrease in cash income during 2019. The average income is projected at around $97,200, which is down from just over $105,000 last year. ********************************************************************************************** USDA Improves Crop Insurance for Sugar Beet Producers The U.S. Department of Agriculture announced it’s made changes to crop insurance for sugar beets in 2020. The Risk Management Agency made changes that will start in 2020 for some policies and 2021 for others. The agency says the changes will better protect sugar beet producers who may get a bumper crop in future years, as well as provide other flexibilities. “We continually listen to producers and stakeholders in developing our crop insurance policies,” says RMA Administrator Martin Barbre. “We also make adjustments to the policies when necessary to better support sugar beet producers and ensure the early harvest adjustment more accurately matches their current year production.” Key changes include revising the maximum early harvest adjustment to better reflect a unit’s production capabilities, especially in the case of a bumper crop. They’re also adding procedures to allow third-party testing of sugar beets for raw sugar content. Changes are further outlined in a final rule, now available at regulations.gov. Interested parties can comment on the final rule for 60 days. ********************************************************************************************** Hemp Innovation Challenge Coming to World Ag Expo in 2020 Something new is coming to the World Ag Expo. The Hemp Innovation Challenge is designed to kickstart the future of the hemp industry by supporting entrepreneurs, researchers, and students, who are launching some of the world’s biggest hemp industry innovations. Submissions are invited from hemp innovators in universities, companies, research institutes, barns, and government agencies. Finalists will be invited to the World Ag Expo in Tulare, California, in February of 2020 to take part in the Fast Pitch competition. Prizes will be awarded for ideas that include technology, software, and services driving growth and innovation in food, fuel, medicine, health, fiber, and sustainable development. The winners will receive strategic feedback about their innovation, business model, and go-to-market strategy. Event level highlights will include networking with executives, investors, and mentorship support for launching their innovations. Entering its 53rd year of existence, the World Ag Expo is the largest annual outdoor ag trade show in the world. The show had 102,800 people from 48 states and 65 countries enter the event in 2019 alone.
| Rural Advocate News | Monday December 2, 2019 |
Washington Insider: Hong Kong and the Trade Fight with China Trade observers are watching carefully following last week’s decision by President Donald Trump to sign legislation expressing support for Hong Kong protesters. In response, China threatened retaliation just as the two nations seemed close to signing a “phase one” agreement, Bloomberg reported. China summoned U.S. Ambassador Terry Branstad for a formal meeting in which Vice Foreign Minister Le Yucheng told the U.S. to “stop meddling in Hong Kong affairs.” He warned that such actions would strain ties and risk affecting “cooperation in important areas.” Earlier, the foreign ministry reiterated threats of retaliation with no specifics, Bloomberg said. Hu Xijin, the editor-in-chief of state-run Global Times, said Thursday in a tweet that China was considering putting the U.S. drafters of the law on a no-entry list. The new law requires annual reviews of Hong Kong’s special trade status as well as sanctions against any officials deemed responsible for human rights abuses or undermining the city’s autonomy. A second Hong Kong measure also bans the export of crowd-control items such as tear gas and rubber bullets to the city’s police. While signing the bills, President Trump signaled that he “didn’t want the broader relationship with China to veer off track.” He expressed concerns with unspecified portions of the new law, saying they risked interfering with his constitutional authority to carry out American foreign policy. “I signed these bills out of respect for President Xi, China, and the people of Hong Kong,” Trump said. “They are being enacted in the hope that leaders and representatives of China and Hong Kong will be able to amicably settle their differences leading to long term peace and prosperity for all.” Investors are watching closely for signs that the new measures might derail the proposed deal being counted on to de-escalate a trade war that’s dragged on for 20 months. President Trump would like the agreement finished in order to ease economic uncertainty for his campaign in 2020. China also is looking to avoid further damage to an economy growing at the slowest pace in decades. China is irked that the bill will bolster Hong Kong protesters who have become increasingly violent in their bid to secure demands including an independent inquiry into police abuses and meaningful elections, but it probably won’t affect trade talks much, said David Zweig, an emeritus professor at the Hong Kong University of Science and Technology and director of Transnational China Consulting Ltd. Hong Kong’s protesters cheered the bill’s passage and lauded President Trump for signing it into law. President Trump actually had little choice but to sign the bill, since the House cleared it 417-1 on Nov. 20 after the Senate passed it without opposition – majorities that would allow an override of any veto by the president, Bloomberg said. While many members of Congress in both parties had voiced strong support for the protesters who are demanding greater autonomy for the city, President Trump stayed largely silent, even as the demonstrations have been met by rising police violence. Last week, Senate Majority Leader Mitch McConnell, a Kentucky Republican, called on the president to speak out, saying that “the world should hear from him directly that the United States stands with” the protesters. China’s foreign ministry had repeatedly urged Trump to prevent the legislation from becoming law, warning the Americans not to underestimate China’s determination to defend its “sovereignty, security and development interests.” Chinese foreign ministry spokesman Geng Shuang dodged questions on whether trade talks would be affected as he briefed reporters in Beijing late last week. “We strongly urge the U.S. to refrain from implementing this law or it will undermine our bilateral relations and cooperation in important areas,” he said in response to a question on how the bill’s signing would impact the negotiations. Before a speech at the recent Bloomberg New Economy Forum in Beijing, China’s Vice Premier Liu He – the country’s chief trade negotiator – said that he was “cautiously optimistic” about reaching the phase one accord. Relations with China appear to be particularly fragile just now, although both sides are quick to say they are still working toward the “beginning” of a major deal – in spite of continued questions of what, exactly, might be included. Certainly, these continuing talks are enormously important and should be watched closely by producers as they proceed, Washington Insider believes.
| Rural Advocate News | Monday December 2, 2019 |
EU Approves US Beef Import Increase The European Parliament voted by 457-140, with 71 abstentions, in favor of a plan to permit U.S. farmers a larger share of an existing 45,000-ton quota from 2020. It came with a resolution that urges the removal of U.S. tariffs on EU steel and aluminum, and the withdrawal of a threat to raise tariffs on EU cars. "The message of this agreement is clear: we would like to de-escalate trade tensions with the U.S., but we want to see the same efforts of de-escalation on the other side of the Atlantic," said Bernd Lange, head of parliament's trade committee.
| Rural Advocate News | Monday December 2, 2019 |
Government Payments Key Contributor to Rise in 2019 Farm Income Forecast U.S. net farm income is now forecast at $92.5 billion for 2019, up $8.5 billion (10.2%) from the 2018 level, according to USDA’s November 2019 Farm Income Forecast. In inflation-adjusted terms, net farm income is seen up $7 billion, down 32.3% from $136.6 billion in 2013. In August, USDA forecast net farm income at $88 billion. Net cash farm income is seen at $119 billion, a rise of $15.5 billion (15%) from 2018, and up from the August forecast of $112.6 billion. Feeding the increase is a rise in cash receipts for all commodities of $2.2 billion, reaching $374.2 billion for 2019. With total animal/animal product receipts basically unchanged, there is a $1.9 billion rise forecast for total crop receipts compared with 2018. Key in the improved farm income outlook? Direct government farm payments are forecast to increase $8.8 billion (64%) to $22.4 billion in 2019, USDA said, “with the increase due to higher anticipated payments from the Market Facilitation Program” (MFP 2). USDA in August said those direct government payments were to be $19.5 billion, an increase of $5.8 billion from 2018. The 2019 forecast includes payments from the program first implemented in 2018 but received by producers in calendar year 2019, plus the expected payments from the first and second tranches of the program announced in 2019. “We assume producers will receive 75% of the announced 2019 payment total of $14.5 billion,” USDA stated.”
| Rural Advocate News | Monday December 2, 2019 |
Monday Watch List Markets Updated weather forecasts are probably the first things traders will check the first Monday of December, along with any trade news that might have come out over the weekend. USDA's weekly export inspections are due out at 10:00 a.m. CST. In the afternoon, the monthly Fats and Oils report is at 2 p.m., CFTC's Commitments of Traders report is at 2:30 p.m. and a USDA update on harvest progress follows at 3 p.m. CST. Weather Most primary crop areas will be dry Monday. Moderate to heavy snow cover in the Dakotas, Wisconsin, and Michigan -- where corn harvest is the most delayed -- will impede additional harvest progress. Dry conditions in the 10-day forecast offer some improvement for late harvest.
| Rural Advocate News | Friday November 29, 2019 |
No Final RFS Rule Friday Today (Friday) is when historically the Environmental Protection Agency would release it’s final Renewable Fuel Standard proposal. However, thanks to other changes pending in the rule, the EPA said earlier this week that the agency would review comments, and will seek to finish the rule this winter. The comment period for the proposed changes regarding small refinery exemptions closes today (Friday), which effectively puts the final rule on hold until the proposal is finalized. Corn and ethanol groups were busy earlier this week submitting comments to the EPA. Many say the proposal breaks a promise by President Donald Trump to make up for all lost demand created by the exemptions. The industry says more than four billion gallons of demand for biofuels has been lost due to retroactive small refinery exemptions for compliance years 2015 through 2018. National Corn Growers Association President Kevin Ross of Iowa states, “The proposed rule fails to provide the assurance needed that EPA’s practices for granting waivers will change going forward.” ************************************************************************************* Hoeven, Peterson, Meet with Sugar Growers Regarding Assistance Lawmakers recently met with sugar producers to discuss needed relief efforts after a challenging growing season. North Dakota Senator John Hoeven, a Republican from North Dakota and chairman of the Senate Agriculture Appropriations Committee, along with House Agriculture Committee Chair Collin Peterson, a Minnesota Democrat, met with sugar producers earlier this week. They are working with Department of Agriculture undersecretary Bill Northey to secure disaster assistance funding for sugarbeet growers, while urging USDA to avoid any premature actions, including increasing sugar imports. Sugarbeet growers, who were impacted by severe weather, are facing unique circumstances as they work to recover, including the inability to complete harvest and budgeting constraints faced by the cooperative. The current disaster programs do not account for these constraints, which is why Hoeven and Peterson are working with USDA to secure disaster assistance. Hoeven says producers “have faced real challenges this harvest,” while Peterson says, “we’ll continue having conversations to see what can be done to address the concerns.” ************************************************************************************* Committee to Vote on FDA Nominee Next Week The Senate Health Committee will vote on Stephen Hahn’s nomination to serve as Commissioner of the Food and Drug Administration next week. Tuesday, the committee will consider the nomination, among three others. If approved, the nominations would head for the full Senate for a final confirmation vote. During a hearing by the committee examining the nomination, Hahn briefly voiced his support for “clear, transparent, and understandable labeling” for dairy and dairy imitation products. The comments were welcomed by the National Milk Producers Federation, as NMPF CEO Jim Mulhern stated, “It’s heartening to hear” Hahn would “immediately examine this crucial unfinished business.” NMPF and others are seeking a labeling system that prohibits plant-based dairy imitators from using dairy marketing terms. Rules already do so, but FDA has not enforced them. Committee Chairman Lamar Alexander, a Republican from Tennessee, called Hahn an “impressive choice” to lead the FDA. Ranking member Patty Murray, a Democrat from Washington, demanded Hahn commit to putting science, data and families first. ************************************************************************************* Deere Reports 2019 Sales Increase Deere & Company reports worldwide net sales and revenues increased five percent in both the fourth quarter and full year of 2019 to $9.8 billion and $39.2 billion. Deere reported fourth-quarter net income of $722 million, compared with net income of $785 million, in 2018. Agriculture and Turf sales increased for the quarter and full year of 2019 due to price realization and higher shipment volumes, partially offset by the unfavorable effects of currency translation. However, operating profit decreased for the quarter and year. Deere CEO John May says the performance “reflected continued uncertainties in the agricultural sector,” adding “trade tensions coupled with a year of difficult growing and harvesting conditions have caused many farmers to become cautious about making major investments in new equipment.” Deere's worldwide sales of agriculture and turf equipment are forecast to decline between five and ten percent for fiscal-year 2020. Industry sales of agricultural equipment in the U.S. and Canada are forecast to be down about five percent, driven by lower demand for large equipment. ************************************************************************************* Online Cheese Sales Set to Surpass Half a Billion Dollars in 2020 Online cheese sales are experiencing major growth. By the end of 2019, data shows that e-commerce sales will surge past $440 million. The 54 percent annual growth in online sales over the past four years signals that shoppers are embracing the convenience and variety available when ordering cheese online. Suzanne Fanning, Senior Vice President at Dairy Farmers of Wisconsin, says, "Consumer research shows that cheese aligns with on-trend food preferences because it is packed with protein and good fat." With the holidays being the peak shopping season for cheese, it is poised to be one of the hottest gifts this holiday season. The organization is encouraging consumers to buy Wisconsin cheese. A list of holiday gift baskets is available on the organization’s website. The collection includes twelve unique gift baskets that offer a variety of cheeses from top specialty retailers. Get free shipping nationwide on the entire collection from Black Friday to Cyber Monday at WisconsinCheese.com/gift-basket. ************************************************************************************ USDA ERS: Potatoes Top U.S. Vegetable Consumption Potatoes rank number one among vegetables in terms of consumption, according to Department of Agriculture data. USDA’s Economic Research Service says that in 2017, 49.2 pounds of fresh and processed potatoes per person were available for Americans to eat after adjusting for losses. The loss-adjusted food availability data series takes per capita supplies of food available for human consumption and more closely approximates actual consumption by adjusting for some of the spoilage, plate waste, and other losses in restaurants and grocery stores, as well as at home. Loss-adjusted availability of fresh potatoes was 22.9 pounds per person in 2017, followed by frozen potatoes at 20.5 pounds per person, while canned and dehydrated potatoes, along with potato chips and shoestrings, totaled 5.9 pounds per person in 2017. Tomatoes came in second. While loss-adjusted canned tomato availability, at 16.1 pounds, leads fresh tomatoes, total tomato loss-adjusted availability, fresh and canned, came in second, at 28.7 pounds per person. Onions, lettuce, carrots and sweet corn finish the list of America’s top seven vegetable choices.
| Rural Advocate News | Friday November 29, 2019 |
Washington Insider: Potential Digital Sales Tax Fight You could be excused if you thought that the U.S., China trade fight was the main trade policy uncertainty these days, especially after Bloomberg reported this week that President Donald Trump told the press that “he’s holding up” the phase one deal. “We can’t make a deal that’s like, even,” Trump said, adding that he said as much to China’s President Xi Jinping. “We have to make a deal where we do much better, because we have to catch up,” he said. Still, the report said that the president thinks a China deal is in the “final throes.” However uncertain the China deal may be, it is not the only trade concern now bubbling up. The New York Times said on Wednesday that the “90-day pause in the taxation of technology companies and other corners of the digital economy had ended.” The report raised questions of whether the president would revive threats against French wine and other products. The Times focused on the potential for an escalating battle between the U.S. and France over taxing digital services. It noted that President Trump “gave no indication this week” whether he planned to return to his threats to impose new tariffs on imported wine and other French products as a result. French leaders voted earlier this year to impose a new tax on economic activity that takes place online and “crafted it in such a way that it would largely hit large American tech companies like Amazon and Facebook.” In response, the administration opened an investigation into whether “the tax posed a threat to national security and should be met with American tariffs on French products.” The President made that threat in July. Soon after, the countries reached a 90-day agreement that paused the American retaliation, while leaders from wealthy countries including France and the United States pursued negotiations toward an international agreement on digital taxation. The French tax was an effort to capture revenue from activities of companies that sell or advertise online to its citizens — an effort being considered by a growing number of countries outside America, including Britain, Italy and Canada, the Times said. The Organization for Economic Cooperation and Development is spearheading negotiations between the countries as it tries to avoid “an arms race of sorts” over digital sales revenue that crosses borders. Participants have set an ambitious goal to reach an agreement in principle sometime next year and key negotiators will meet next month in Paris to continue the process. A final global agreement has the potential to expand to cover large automakers and other multinational companies — not just tech firms — the Times said. Some tax experts predict that the administration will extend the truce period, perhaps unofficially, until at least January when the OECD is expected to update the status of the negotiations. Others say the administration is likely to hold off as long as negotiations remain fruitful. “Absent some sort of intervention from the president, it seems very unlikely that the U.S. will act on its investigation before seeing whether there is a satisfactory agreement at the OECD this coming January, and if such an agreement is reached, whether the French keep their promise and repeal their digital services tax,” said Itai Grinberg, an international tax policy professor at Georgetown University Law Center. The President has made it known that he is unhappy with the French tax even though he has separate concerns about the tech companies that are threatened by it. “I’m not a fan of those companies, but if anybody is going to tax those companies, it should be the USA,” the President said. “It shouldn’t be France and the European Union, who have really taken advantage of the United States.” David Kautter, the Treasury Department’s assistant secretary for tax policy, said last week that any countermeasures against France would be determined by the U.S. Trade Representative. He said that discussions between the United States and France had been “substantive” and “meaningful,” but it was not clear when the two countries would resolve their differences over the matter. “The administration adamantly opposes unilateral digital services taxes that are focused primarily on U.S. companies,” Kautter said. “We think the best way to resolve this issue is through multilateral discussions in the OECD. We are actively engaged in those discussions.” Still, Kautter cautioned that the target date for reaching a broader agreement was not until the end of next year and that there were many complicated matters to address in that time. So, we will see. This potential fight appears likely to be one more hot button trade issue to add to the several that concern other products in other areas, and which have the potential to become increasingly important, and which producers should watch closely as they evolve, Washington Insider believes.
| Rural Advocate News | Friday November 29, 2019 |
Comment Period on EPA Supplemental RFS Plan Ends Today As 2019 SREs Are On File The Environment Protection Agency (EPA) signaled last week via the unified agenda released November 20 that they would not be finalizing the 2020 biofuel and 2021 biodiesel levels under the Renewable Fuel Standard (RFS) by the November 30 deadline. Rather, the agency said they intended to file a final rule in December. An EPA spokesman is now telling media outlets that the agency would finalize the plan “this winter.” The Winter Solstice arrives December 21, so EPA’s guidance in the regulatory agenda of issuing a final rule in December would certainly match what the EPA is telling media outlets. Meanwhile, EPA has updated their data on small refinery exemptions (SREs). For the 2018 compliance year, EPA data shows 42 were submitted, 31 were approved and six were rejected. EPA data had previously shown three to have been withdrawn or declared ineligible. In late August, EPA data showed two were still labeled as pending. As of November 21, EPA now shows 42 were requested, 31 were approved, six were denied, and now it has separated the declared ineligible or withdrawn categories. Those figures now show that two have been declared ineligible and three have been withdrawn and no petitions are shown as pending for the 2018 compliance year. For the 2019 compliance year, EPA now lists 10 petitions for SREs having been received as of November 21, and all 10 are still shown as pending.
| Rural Advocate News | Friday November 29, 2019 |
Fed Says US Agriculture Conditions Remain Strained Conditions facing U.S. agriculture were “little changed overall” compared with late October, according to the Fed’s Beige Book, but conditions remain “strained by weather and low crop prices.” The report, issued two weeks prior to the next rate-setting meeting for the Federal Reserve, also offers comments from individual Fed Districts. The Chicago Fed indicated that “early frost and snow further delayed this year’s harvest and diminished yields.” Plus, there were concerns about crop quality. “Contacts noted that demand for pork from China had grown despite U.S. tariffs because African swine fever had decimated China's hog herd,” the Chicago Fed noted. “More generally, contacts reported a pickup in overall agricultural exports, with some noting that news on trade negotiations sounded promising for future exports. Farm incomes generally are expected to be down from last year, although government payments from the Market Facilitation Program will provide some support.” The St. Louis Fed reported conditions were basically unchanged from the October report. “Production levels for corn, rice, and soybeans are expected to be significantly lower than in 2018, while that for cotton is expected to increase modestly,” the bank said. “District contacts continued to express concerns over depressed agriculture commodity prices.” The Minneapolis Fed noted difficult conditions for the ag sector. “District agricultural conditions declined from an already weak position,” the report noted. “Roughly three in five lenders responding to the Minneapolis Fed's third-quarter (October) survey of agricultural credit conditions reported that farm incomes decreased in the third quarter relative to a year earlier, with a similar proportion reporting decreased capital spending.” Similarly, the Kansas City fed noted conditions in ag remained “weak” and “agricultural credit conditions deteriorated slightly.”
| Rural Advocate News | Friday November 29, 2019 |
Friday Watch List Markets Back from the Thanksgiving holiday, USDA will release its weekly report of grain export sales at 7:30 a.m. CST. Friday's grain and livestock futures open at 8:30 a.m. CST. Most U.S. grain futures close at 12:05 p.m. CST and livestock futures close at 12:15 p.m. CST. There are no other official reports, but traders will be interested in weather and any trade news. Weather Snow, ice and rain develops through the north-central U.S. region early Friday. This will become mostly snow later Friday or during Friday night into Saturday. Strong winds, heavy snow and ice tonight and Saturday will likely affect travel, transport, field activities and livestock in this area. Blizzard conditions may develop during this time. Some ice may also occur through the northwest Midwest later Friday or during Friday night. Mostly rain or showers through the eastern Plains, the southwest and central Midwest during this time frame. Strong winds but little rainfall through the west-central Plains winter wheat areas Friday, possible a risk to winter wheat. Drier through the eastern U.S. areas Friday.
| Rural Advocate News | Wednesday November 27, 2019 |
2019 Trade Aid May Violate WTO Commitments A recent independent report suggests U.S. trade aid in 2019 for farmers may surpass limits set in World Trade Organization commitments. The report for the American Enterprise Institute by Joe Glauber, a former Department of Agriculture Chief Economist, suggests the size of payments made to producers in 2019 may encourage other WTO members to challenge the payments. Glauber writes, a long-term concern is "how trade compensation comports with U.S. obligations in the WTO and, more generally, how it will affect future U.S. efforts to seek further reforms in the WTO.” President Donald Trump and his administration have approved the payments, roughly $28 billion, to offset any harm by other countries retaliating against the Trump trade agenda. Glauber says current WTO rules require that annual U.S. domestic supports that distort trade flows not exceed a maximum of $19.1 billion. Since the WTO disciplines went into effect in 1995, United States levels of support have remained in that annual limit. ************************************************************************************* NPPC: Improved Pork Trade with China can Lower Trade Deficit Securing zero-tariff access to China for U.S. pork would be an economic boon for American agriculture, according to the National Pork Producers Council. Based on an analysis by Iowa State University Economist Dermot (Der-Muht) Hayes, NPPC says unrestricted access to the Chinese chilled and frozen market would reduce the overall trade deficit with China by nearly six percent, and generate 184,000 new U.S. jobs in the next decade. NPPC Tuesday launched a digital campaign to spotlight the importance of opening the Chinese market to U.S. pork as trade negotiations continue. According to Dr. Hayes’ analysis, U.S. pork would generate $24.5 billion in sales if U.S. pork gained unrestricted access to the world’s largest pork-producing nation over ten years. NPPC President David Herring says the analysis shows, "The U.S. pork industry is missing out on an unprecedented sales opportunity in China when it most needs an affordable, safe and reliable supply of its favored protein." ************************************************************************************* Canada Rail Strike Prompts Potash Mine Shutdown Nutrien Ag Solutions says it will be forced to curtail production at its largest potash mine in Canada due to the CN Rail strike. Employees were sent notices this week, indicating the mine will be shut down for two weeks starting on December 2. The company says, "It is extremely disappointing that in a year when the agricultural sector has been severely impacted by poor weather and trade disputes, the CN strike will add further hardship to the Canadian agriculture industry.” The shutdown will continue despite the fact workers and CN Rail reached an agreement Tuesday. Nutrien is the world's largest provider of crop inputs and services, producing and distributing 27 million metric tons of potash, nitrogen and phosphate products worldwide. More than 3,000 CN rail employees are on strike, impacting agricultural shipments of grains, fertilizers and even propane for grain drying. A Fertilizer Canada official says an estimated $200 million to $300 million worth of fertilizer shipments will be impacted by the strike. ************************************************************************************* Organic Valley Unaffected by Dean Foods Bankruptcy When Dean Foods filed for bankruptcy this month, questions surfaced regarding the status of partnerships with the company and the health of the dairy industry. However, Organic Valley, a Wisconsin-based organic cooperative, says it’s Organic Valley Fresh LLC joint venture, which represents a small fraction of its milk processing and distribution, falls outside of the Dean Foods filing. The cooperative says its members are "disheartened by Dean Foods' bankruptcy as it represents the many challenges dairy farmers face in getting their products to market." Organic Valley officials say the cooperative remains strong and innovations have bolstered the business overall. Dean Foods this month announced the chapter 11 bankruptcy filing, adding the company was in advanced talks with Dairy Farmers of America regarding a potential sale. The National Milk Producers Federation says Dean's bankruptcy is creating uncertainty for some producers, but "seen from another angle, it's just another disruption this sector will be able to withstand,” due to the strength of cooperatives and their dairy farmer-owners. ************************************************************************************* Ag Innovation Necessary to Address Climate Change The American Seed Trade Association says agriculture innovation will help combat and mitigate the impacts of climate change. In comments submitted to the House Select Committee on the Climate Crisis, ASTA says, "The development and commercialization of innovative plant products is already playing a significant role in helping U.S. agriculture reduce greenhouse gas emissions. For U.S. agriculture to maximize its potential to reduce greenhouse gas emissions and increase carbon sequestration, several things are needed, according to ASTA, including additional private and public sector investment in agriculture research. The organization says agriculture also needs rational government policies regarding evolving innovation in the agriculture space, and programs that incentivize farmers to adopt conservation practices. The comments note plant breeders are helping through developing better and higher-yielding crop varieties. ASTA says, "It's critical we continue moving forward, through robust investment in agriculture research and development, to drive forward the next generation of innovative solutions to meet the new and emerging challenges of tomorrow." ************************************************************************************ USDA Announces Broadband Investments in Wyoming, Kansas The Department of Agriculture this week announced two more investments as part of its new rural broadband effort. Natural Resources Conservation Service chief Matthew Lohr announced the $5.2 million investment for broadband infrastructure in Kansas as part of the Reconnect Pilot Program, while USDA also announced a $4.79 million investment in Wyoming. In Kansas, Wave Wireless, LLC will use the funding to deploy a fiber broadband network servicing more than 1,300 households. In Wyoming, the funds will improve and create broadband connections in the county of Sweetwater, benefiting roughly 320 homes. USDA received 146 applications this year requesting $1.4 billion in funding through the ReConnect Program. The funds enable the federal government to partner with the private sector and rural communities to build modern broadband infrastructure in areas with insufficient Internet service. Insufficient service is defined as connection speeds of less than ten Megabit download and one Megabit per second upload speeds. Additional investments will be made in the coming weeks.
| Rural Advocate News | Wednesday November 27, 2019 |
Washington Insider: More Trouble With Romaine Lettuce Amid all the alarms about the trade war, another threat is being highlighted this week by federal health and regulatory officials who are cautioning about romaine lettuce “of any kind harvested from the Salinas Valley.” The danger is that the lettuce “may be contaminated with a particularly dangerous type of E. coli bacteria that has sickened 40 people in 16 states.” The warnings were highlighted by an unusual range of urban media, including the Washington Post and the New York Times, among others. The warnings were stark — the Centers for Disease Control and Prevention and the Food and Drug Administration told consumers to throw away any romaine lettuce they may already have purchased. To be clear, they said “restaurants should not serve it, stores should not sell it, and people should not buy it, if it came from Salinas, a growing area in Northern California.” The warning covered products marketed in many forms, including “chopped, whole head, precut or part of a mix.” Most romaine lettuce products are now labeled with a harvest location showing where they were grown, the Washington Post said and reported that “officials said to throw out lettuce if it doesn’t have a label specifying where it’s from.” No deaths have been reported in this E. coli outbreak, but the strain is the same one that caused outbreaks linked to leafy greens and romaine lettuce in the last two years. Just two days before Thanksgiving last year, CDC issued an unusually broad alert, warning consumers to avoid eating romaine lettuce of any kind in response to an outbreak. Of those who have been sickened in this outbreak by E. coli O157: H7, 28 people have been hospitalized, including five who have developed a type of kidney failure. This E. coli strain produces a Shiga toxin that can enter a person’s bloodstream and wreak havoc on kidney function. Symptoms of infection include vomiting, painful cramps and diarrhea that is often bloody. The largest number of cases reported so far has been in Wisconsin, with 10 cases, the Post said. Other cases have been reported in Arizona, California, Colorado, Idaho, Illinois, Maryland, Michigan, Minnesota, Montana, New Jersey, New Mexico, Ohio, Pennsylvania, Virginia, and Washington. The report said that FDA and states are tracing the source of the romaine lettuce eaten by the ill consumers, but that “no common grower, supplier, distributor, or brand of romaine lettuce has been identified.” The Post also said that “whole genome sequencing shows the strain in romaine lettuce tested by the Maryland Health Department is closely related genetically to the E. coli found in sick people from several locations. And it noted that USDA has a list of 35 recalled products sold under different brand names and “use by” dates from Oct. 29, 2019 to Nov. 1, 2019. At this time, there is no recommendation for consumers or retailers to avoid using or selling romaine harvested from places other than Salinas, or labeled as indoor, or hydroponically- or greenhouse-grown, FDA officials said. Convenience salads, from tubs of prewashed baby spinach to bags of chopped romaine, are regularly implicated in foodborne illness outbreaks, the Post said. Last year, an outbreak that began in March from chopped, bagged, as well as whole heads of romaine was the largest E. coli outbreak in more than a decade, killing five people and sickening more than 200 others in three dozen states. Food safety experts have said those convenience greens carry an extra risk because they come in contact with more people and machinery before they arrive on your plate. Contamination can occur on the farm from birds flying overhead or when low-lying fields flood with contaminated water. E. coli can also be spread by farmworkers who don’t wash their hands or via farm equipment that has manure on it. Once the greens are picked, they move to packaging plants where they may be exposed to more workers and more equipment. Products from multiple farms is often bagged in the same facility, which further increases the odds of cross-contamination. The problem with lettuce is that it is usually consumed fresh without being cooked or otherwise prepared in ways that can kill bacteria. In addition special testing ahead of distribution is both difficult and costly since the amounts of produce involved can be very large. At the same time, food borne illness outbreaks are extremely damaging to the fresh food industry as well as to the credibility of the entire food supply system. Regulators have recently been given new authorities to take steps to insure the safety of the food supply and need to take extraordinary steps as necessary to carry out those directions, Washington Insider believes.
| Rural Advocate News | Wednesday November 27, 2019 |
Big Impact If China Cuts Its Tariff On US Pork A trade agreement that eliminates China’s 72% tariff on U.S. pork could reduce the bilateral trade deficit by nearly 6% and generate 184,000 new American jobs over the next decade, according to Iowa State University economist Dermot Hayes for the National Pork Producers Council. U.S. pork producers see a potential $24.5 billion market in China within 10 years if the Trump administration can gain unrestricted trade access after the Asian country’s hog herd has been devastated by African swine fever. The projection was based on a “best-case scenario” in which China drops all tariffs and barriers to pork imports, including speeding up customs processing to allow for imports of chilled pork. Hayes projected that without tariffs, China would import 35% of its pork — a level similar to Mexico and Australia after they concluded free-trade agreements — and U.S. producers would capture half that market.
| Rural Advocate News | Wednesday November 27, 2019 |
US Ag Exports Seen Rebounding While Another Import Record Forecast By USDA Increased values for U.S. pork, soybean and dairy exports helped fuel an increase in the forecast for U.S. agricultural exports for Fiscal Year (FY) 2020 with another record seen for U.S. ag imports, according to USDA. China remains a prominent factor in the U.S. agricultural export outlook. U.S. soybean exports are forecast to total $18 billion in FY 2020, up from USDA’s prior forecast they would be valued at $16.8 billion. The updated FY 2020 outlook is above the FY 2019 level of $16.9 billion, but shy of the FY 2018 mark of $21.7 billion. However, soybean export volumes for FY 2020 are seen holding at 48.3 million metric tons, down from 56.9 million metric tons in FY 2019. The value of U.S. pork exports is seen at $6.7 billion, up $400 million from the prior outlook at sharply higher than the FY 2019 result of $5.5 billion. China is also a factor in that outlook, with USDA noting the rise is “largely due to demand from China.” U.S. ag imports are now put at $132 billion, up from $129 billion and above the record of $131 billion in FY 2019. Imports also set new records in FY 2017 ($119.1 billion) and FY 2018 ($127.5 billion). Much of the increase is seen for fresh fruits and vegetables and grain products, USDA said. “Fresh fruit imports are raised $1.7 billion to $15 billion, largely due to increased deliveries of avocados, berries, and melons from Mexico,” USDA detailed. The aforementioned export and import forecasts would result in a trade balance of $7 billion, one billion less than USDA expected in August, but up from the $4.5 billion mark in FY 2019, the smallest U.S. ag trade black ink since FY 2006.
| Rural Advocate News | Wednesday November 27, 2019 |
Wednesday Watch List Markets Wednesday before Thanksgiving is loaded with reports, starting with U.S. GDP, weekly jobless claims and durable goods orders at 7:30 a.m. CST. U.S. personal incomes and pending home sales are out at 9 a.m. The U.S. Energy Department releases weekly energy inventories at 9:30 a.m., including ethanol. Natural gas inventory is set for later in the morning, followed by the Fed's Beige Book at 1 p.m. CST. U.S. grain and livestock futures close at normal times on Wednesday and open again Friday at 8:30 a.m. CST. Weather Snow, ice and rain along with strong winds lingers over the northern Midwest early Wednesday while later in the day it should be drier. A new storm is taking shape over the western U.S. with widespread rain and snow expected mainly west of the Rockies. A minor disturbance will bring rain and mixed precipitation to New Mexico and west Texas mainly this afternoon. Drier elsewhere in the key U.S. growing areas. Impacts to travel, transport and harvesting today the Midwest due to recent and current snow, rain and wind. Impacts to travel and harvesting due to yesterday's snow through the northern portion of the central Plains region. Impacts to travel in many areas west of the Rockies.
| Rural Advocate News | Tuesday November 26, 2019 |
Trump Twitter Tirade on USMCA Inaction The president once again took to Twitter to lash out at House Democrats over their inaction on the U.S.-Mexico-Canada Trade Agreement. President Trump placed the blame for leaving USMCA squarely on Speaker Nancy Pelosi and House Democrats for leaving USMCA “dead in the water.” USMCA isn’t the only legislation that’s awaiting action as the House and Senate are both out of session for the Thanksgiving break. There aren’t many days left on the congressional schedule in 2019. Politico says Democrats are expected to conduct negotiations with U.S. Trade Representative Robert Lighthizer by phone this week. However, the House’s impeachment process and yet another government shutdown deadline looming will likely take up a lot of that remaining time on Capitol Hill through December. The good news for USMCA proponents is Mexico passed a budget for 2020 that includes more money for overhauling its labor laws. That could give some reassurance to House Democrats and U.S. labor groups, who’ve been worried that Mexico wouldn’t follow through on its labor commitments under the three-nation trade agreement. It’s been one of the biggest sticking points that’s held up Congressional ratification. ********************************************************************************************* Commission says Mexican Tomato Imports Threaten Domestic Production The U.S. International Trade Commission ruled Friday that Mexican tomato imports threaten local production. That decision comes after the U.S. Commerce Department had already determined that Mexican tomatoes were likely to be sold at an unfairly low price as they were dumped into the U.S. market. The Florida Tomato Exchange asked for a dumping investigation shortly after the U.S. and Mexico signed a new trade deal. The Florida group says the ITC’s decision gives credibility to its long-standing concerns about Mexican imports. The Mexican-based Fresh Produce Association of the Americas says it is disappointed in the decision, saying that rising Mexican imports simply reflects growing demand by U.S. consumers for Mexico’s produce. Mexican officials say, “Consumers prefer vine-ripened tomatoes, and this is why (U.S.) domestic gassed-green tomatoes continue to lose market share in the U.S.” The ITC ruling means that the recently negotiated tomato suspension agreement is still in effect. The deal will bring much-heavier inspection requirements for tomatoes entering the U.S. If the deal is ended for any reason, the U.S. will then impose a 21-percent duty on Mexican tomatoes, which account for nearly half the tomatoes sold in the U.S. ******************************************************************************************** “Phase Two” U.S. and China Agreement not Imminent U.S. and Beijing officials, lawyers, and other trade experts all tell Reuters that a “phase two” trade deal between the U.S. and China is nowhere near imminent. The two largest economies in the world are still having trouble getting the phase one deal signed. Back in October, U.S. President Trump said he expects to quickly start on phase two negotiations after the phase one deal is completed. The phase two trade deal would focus on the U.S. accusations that China steals U.S. intellectual property by forcing U.S. companies to transfer technology to Chinese rivals. Reuters says things like the 2020 presidential election, phase one deal difficulties, combined with the president’s reluctance to work with other countries to pressure China into playing by World Trade Organization rules are starting to dampen hopes for a more ambitious agreement in the future. Officials in Beijing have already commented publicly that they won’t start discussions on a phase two agreement until after the 2020 election because they want to see if Trump wins a second term. Reuters reported last week that signing the phase one agreement has the potential to slide into 2020. ********************************************************************************************** Rural Mainstreet Index Rises Again The Creighton University Rural Mainstreet Index for October climbed above growth-neutral. The index is a monthly survey of bank CEOs in rural areas of a 10-state region that depends on agriculture and/or energy. The index rose to 51.4 in October, up from 50.1 in September. While the reading is still weak, it’s the highest reading since last June. It’s the third time in the last four months that the index came in above growth neutral. Doctor Ernie Goss of Creighton says, “Federal agriculture crop support payments and somewhat higher grain prices have boosted the Rural Mainstreet Index slightly above growth neutral for the month. Even with that said, almost three of four bank CEOs reported continuing negative impacts from the trade war.” By way of comparison, the farmland and ranchland price index for October slumped to a weak 40.3 from September’s 43.1. It’s the lowest reading since last March and the 71st-straight month that the index has been below growth neutral. The October farm equipment-sales index improved to 39.7 in October, up from 35.9 in September. ********************************************************************************************** Bill will Help Preserve Family Farms A bill introduced in the House of Representatives last week will help more farm families continue operating their farms after the death of a loved one. The Preserving Family Farms Act of 2019 is sponsored by Jimmy Panetta of California and Jackie Warlorski of Indiana and has the full support of the American Farm Bureau Federation. “Farm and ranch families often face a significant financial burden when they have to pay estate taxes,” says AFB President Zippy Duvall. “Farm families should be able to pay based on how their land is used, rather than its potential value as commercial property, such as a shopping center.” The legislation will give more families hope they can hold onto their farm when a loved one passes away. The bill modernizes the special use valuation provision of the estate tax. This valuation allows the property to be appraised as farmland rather than its development value when determining estate taxes. Increasing the amount of farmland or ranchland that can be valued at agriculture value rather than development value would help protect family-owned farm and ranch businesses by assessing estate taxes on the actual value of the businesses they’ve spent decades building. “We strongly urge members of the House to co-sponsor this important bill,” Duvall says. ********************************************************************************************** Brazil says the U.S. will Open to Beef Imports Soon Brazilian officials tell Bloomberg it’s a matter of “if, not when,” the U.S. will reopen its market to Brazil’s meat exports. The trade and foreign relations secretary for Brazil’s Agriculture Ministry says, “We are 100 percent confident that it will happen. Our meat has the necessary quality to be exported to the U.S. Our meat’s quality is not an issue.” No date has been set in stone yet as to when the U.S. will begin accepting imports from Brazil. The U.S. has several questions about the current state of Brazil’s beef industry. Brazil provided additional answers and is now waiting for the U.S. to finish its analysis of those answers. As recently as October, the U.S. informed Brazil it would keep the ban on fresh-beef imports in place. The U.S. suspended imports from the largest economy in Latin America back in 2017. American inspectors found Brazilian beef to contain blood clots and lymph nodes. Brazil said the findings were abscesses that came about from a reaction to components of a foot-and-mouth disease vaccine. Because of that incident, Brazil reduced the vaccine dosage and made changes to the product’s compound.
| Rural Advocate News | Tuesday November 26, 2019 |
Washington Insider: Phase Two China Trade Prospects Fading Tea leaf reading has always been both difficult and dangerous during times of political turmoil and the current moment is no exception, Reuters said earlier this week. At a time when most pundits are focused on the likelihood of a “phase one” deal that avoids more and bigger tariffs along with continued pressure on the economy from trade uncertainty, Reuters is suggesting that an ambitious “phase two” trade deal between the United States and China is looking less likely as the two countries struggle to complete a phase one agreement. Although in October, President Donald Trump told the press in a joint conference with Chinese vice premier Liu He that he “expected to quickly dive into a second phase” once phase one had been completed. But hold-ups in getting the first-stage done along with “the White House’s reluctance to work with other countries to pressure Beijing” are dimming hopes for anything more ambitious in the near future, Reuters said. The 16-month trade war with China has thrown U.S. businesses and farmers into turmoil, disrupted global supply chains and been a drag on economies worldwide. Failure to address a key reason it was started is already raising questions about whether the sacrifice has been worth it — especially as many of Beijing’s trade practices widely seen as unfair remain unaddressed, Reuters said. In addition, last week Reuters reported that the signing of a phase one deal could slide into next year as the two countries tussle over Beijing’s demand for more extensive tariff rollbacks. Representative Jim Costa, D-Calif., who sits on two key agricultural committees, also reported to the Congress last week that “pragmatic” Chinese sources had described significant hurdles to the agreements and a lack of focus by the administration. White House spokesmen say the administration’s main priority is to secure a “big phase one announcement,” locking in big-ticket Chinese purchases of U.S. ag goods that can be touted as an important win during the coming re-election campaign. After that, China could recede somewhat on the president’s policy agenda as he turns to domestic issues, the official said. “As soon as we finish phase one we’re going to start negotiating phase two,” a second administration official said. “As far as timing around when a phase two deal could be completed, that’s not something I can speculate on.” Reuters said that the White House initially laid out ambitious plans to restructure the United States’ relationship with China. But many of these critical concerns will not be addressed in the phase one agreement, which focuses on China agricultural product buys, tariff roll backs, and includes some intellectual property pledges. “That’s the easy stuff,” said Costa. The harder issues are “industrial espionage, copyrights, privacy and security issues.” Further complicating the issue, the administration’s economic advisers are split: some are pushing for a quick phase one deal to appease markets and business executives, others want the focus to be “a more comprehensive agreement,” Reuters said. Beijing officials, meanwhile, are balking at pursuing larger structural changes to managing China’s economy and are anxious not to appear to be kowtowing to U.S. interests. Both China and the United States have a clear interest in getting a phase one deal completed relatively soon to soothe markets and assuage domestic policy concerns, said Matthew Goodman, a former U.S. government official and trade expert at the Center for Strategic and International Studies. “I think phase one probably will happen because both presidents want it,” Goodman said at a Congressional briefing last week. But he said China was less willing now to make structural changes that might have been possible in the spring. “They’re not going to do those things,” he said. The United States needs better coordination with its allies to pressure China to make urgently needed structural changes, including ending the forced transfer of technology and better intellectual property protections, trade experts and former officials say. Europe and other U.S. allies have been reluctant to join Washington’s pressure campaign on Beijing, partly due to frustration with the administration’s focus on unilateral action and in part due to their reliance on Chinese investment. “We need an international coalition to successfully attack phase two,” said Kellie Meiman Hock, managing partner at McLarty Associates, a trade consulting group in Washington. So, we will see. Clearly the trade talks with China are a major priority for the administration and for many industry groups including agriculture. However, the administration has set high goals for containing trade practices that are seen as unfair—and can expect substantial criticism if it does not focus systematically in those areas — efforts producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday November 26, 2019 |
China Clears Large Number of US Poultry Facilities For Import USDA has released a list of 172 facilities that are now approved to export poultry to China, continuing the process of reopening the Chinese market to U.S. poultry. U.S. facilities approved by FSIS for export to China must be listed on the General Administration of Customs of the People’s Republic of China (GACC) website, FSIS noted, “before slaughtering and processing poultry and poultry products for export to China. U.S. facilities can only export to China poultry that are slaughtered and further processed after the facility has been added to the GACC website.”
| Rural Advocate News | Tuesday November 26, 2019 |
USDA Releases Clarification On Definitions For Export Sales Rules On Pork, Beef USDA Monday published its final rule on clarifications to the Export Sales reporting system in the Federal Register, after the Foreign Agricultural Service (FAS) “received informal inquiries whether exports of different types of beef and pork carcasses must be reported under the regulations.” The final rule notes now there is a footnote to the appendix of items covered under the systems relative to “fresh, chilled or frozen muscle cuts/whether or not boxed” for beef and pork. “For greater clarity, ‘muscle cuts’ includes carcasses, whether whole, divided in half or further sub-divided into individual primals, sub-primals, or fabricated cuts, with or without bone,” the footnote explains. “Carcasses which are broken down, boxed, and sold as a complete unit are muscle cuts. Total weight of carcasses reported may include minor non-reportable items attached to carcasses (e.g., hooves attached to carcasses). Meats removed during the conversion of an animal to a carcass (e.g., variety meats such as beef/pork hearts, beef tongues, etc.) are not muscle cuts nor are items sold as bones practically free of meat (e.g., beef femur bones) or fat practically free of meat (e.g., pork clear plate) removed from a carcass.” The rule was effective when published as it is “a final rule without prior notice and opportunity for comment.” USDA had signaled the update was coming in the regulatory agenda released last week and FAS had previously indicated it was going to update guidance to the trade on pork and beef reporting requirements under the export sales reporting system.
| Rural Advocate News | Tuesday November 26, 2019 |
Tuesday Watch List Markets Financial traders will pay attention to a report on U.S. new home sales and an index of U.S. consumer confidence, both due out at 9 a.m. CST Tuesday. Any news about a possible limited trade agreement with China gets traders' attention as do the latest weather forecasts with U.S. corn still in the fields. Weather Moderate to heavy snow and wind spread from northeast Colorado and northwest Kansas across much of Nebraska, through the northwest portion of the Midwest region Tuesday into Wednesday. This is likely to greatly affect travel, transport and any late-season field work. Winter storm warnings have been issued for much of this area. A high wind warning is also in effect for the southwest Plains region today. Rain or showers will occur through the balance of the Midwest and in the Delta associated with this storm. Drier weather through East Coast states and also in the Northern Plains region. Snow, ice and rain in the western U.S. and the central Rockies region. In South America, rain yesterday in Argentina and today in Brazil will maintain favorable growing conditions for corn and soybeans. Temporary planting delays.
| Rural Advocate News | Monday November 25, 2019 |
Phase One Trade Agreement may be Heading to 2020 U.S. legislation supporting Hong Kong protesters didn’t stop China’s trade chief from making a phone call recently to invite U.S. negotiators to a new round of trade talks. The Wall Street Journal says U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin (Muh-NOO-chin) were invited to Beijing for more face-to-face trade negotiations. While it wasn’t immediately clear if U.S. officials said yes to the invitation, the Wall Street Journal says U.S. trade officials were willing to meet with their Chinese counterparts. The U.S. Trade Representative’s office has yet to respond to requests for comment. The report on the Chinese invitation comes shortly after U.S. legislation on Hong Kong had threatened to push trade talks between the world’s biggest economies off track. Last week, the U.S. House of Representatives passed two bills intended to show support for protesters in Hong Kong. Beijing then accused the U.S. of interfering in its domestic affairs. Trade experts and people close to the Trump Administration say the limited trade agreement could be pushed into next year, news which is not good for U.S. agriculture. The U.S. and China have both imposed tariffs totaling billions of dollars on each other’s goods. ********************************************************************************************* Doubt Growing on USMCA Passing in 2019 Speaker of the House Nancy Pelosi appears doubtful that the U.S.-Mexico-Canada Trade Agreement will be passed this year. After she met with U.S. Trade Representative Robert Lighthizer and House Ways and Means Committee Chair Richard Neal last week, there was no deal and not much time left on the legislative clock. “We’ve made progress,” she said after leaving the 90-minute meeting. “I think we’re narrowing our differences.” She said earlier in the day that they’ll still have several steps to take even after they finally reach an agreement. The clock is ticking. Last Thursday was the last day before the House takes its Thanksgiving break. The Trump Administration and some Democrats hoped to strike a deal before the week-long recess to give lawmakers time in December to take up the pact. The House only has eight days of official session left in the 2019 calendar year. Lawmakers will stay on for an extra week in December to resolve budget issues and avoid a government shutdown. ********************************************************************************************* Michigan Joins Four Other States as Cage-Free A new law says the 15 million egg-laying hens in Michigan’s poultry flocks will have to lay their eggs in cage-free housing systems before 2025. An Associated Press report says Michigan Lt. Governor Garlin Gilchrist (GILL-krist) signed the legislation last week as Governor Gretchen Whitmer is on a trade trip to Israel. The law also prohibits non-cage-free eggs from being sold in Michigan starting in 2025. Gilchrist says the measure ensures Michigan standards for animal welfare are among the strongest in the U.S. At the same time, he says the law ensures egg producers can thrive. Under an older law, each hen was going to have to be confined in a one-square-foot space by April. The new law says each hen has to be housed in a cage-free system by the end of 2024. Michigan is the fifth state and the largest egg-producing state to adopt a cage-free law. The bill is part of a broader update of the state’s animal industry laws. Large restaurant and grocery chains like McDonald’s, Walmart, and Kroger have said they’ll only buy eggs from cage-free farms by 2025. ********************************************************************************************** Farmers Employing More Farm Workers, Paying Higher Wages than in 2018 U.S. farmers are hiring more laborers than they were a year ago and they’re paying higher wages too. The U.S. Department of Agriculture issued a new report saying that farm operators directly employed 809,000 workers during the week of October sixth. That’s three percent higher than the same time last year. The USDA says farmers paid an average gross wage of $15.02 per hour during the same week in October, four percent more than last year. Field laborers averaged $14.38 per hour, which is five percent higher than last year. Livestock workers earned an average of $13.77 per hour, which is three percent higher than last year. The combined livestock and field worker wages average $14.21 per hour, four percent higher than last year. The report says the 2019 all-hired worker annual average gross wage rate comes in at $14.91 per hour, five percent higher than in 2018. The 2019 field worker’s annual average gross wage rate was at $14.11 per hour, six percent higher than the annual average in 2018. Field workers in Oregon and Washington were among the highest-paid this year, averaging $16.56 per hour, up from $15.62 last year. ********************************************************************************************** Feed Industry says China still has Partial U.S. Poultry Ban in Place The American Feed Industry Association says China’s lifting of its ban on U.S poultry imports is only a “partial” lifting. The association has received official confirmation from USDA’s Animal and Plant Health Inspection Service that the announcement only includes poultry imports for human consumption. It doesn’t include other poultry products, such as those used in pet foods. At this time, the import restriction for pet foods with poultry products is still in effect. The association says there’s no difference in the risk of introducing poultry diseases between importing poultry for human or animal consumption. AFIA says it is “extremely disappointed to learn that China is implementing only a partial lifting of the ban and we look forward to working with APHIS and the Office of the U.S. Trade Representative to rectify the situation.” AFIA’s President and CEO, Constance Cullman, says, “China is a valuable market for the entire U.S. animal food industry, for exports of feed, feed ingredients, and value-added products such as meat and poultry.” ********************************************************************************************** Hoeven, Peterson Ask USDA to Help Sugar Growers Senate Ag Appropriations Chair John Hoeven (HOH-vehn) of North Dakota and House Ag Committee Chair Collin Peterson of Minnesota asked the USDA to assist to sugar growers in the Red River Valley. Producers in both states were unable to harvest their crops because of severe weather. The Hagstrom Report says USDA Undersecretary Bill Northey recently made a trip to those areas to see how producers were hit by a wet fall and early snowstorm. Hoeven says, “This has been an unprecedented year of challenges in farm country and we’re working to do all we can to support our producers.” He says sugar growers in the Red River Valley left 118,000 acres of sugar beets unharvested, which is one-third of their entire planted crop. Peterson says, “A tough harvest season has challenged sugar beet growers more than anyone would have anticipated. We’re committed to working with USDA to see if they have a way to access help.” USDA recently announced that the domestic sugar crop was smaller than anticipated due to weather problems. That means the agency expects it will allow an increase in imports.
| Rural Advocate News | Monday November 25, 2019 |
Washington Insider: Edging Closer to Spending Bills The Hill is reporting this week that top negotiators from the House and Senate have reached a long-stalled deal on top-line spending levels for the fiscal 2020 bills. The report cited House Appropriations Committee Chairwoman Nita Lowey, D-N.Y., and Senate Appropriations Committee Chairman Richard Shelby, R-Ala., who say they have settled on “302(b)s,” which set the top-line number for each of the 12 government funding bills. The Friday night agreement marks a “breakthrough” for the government funding negotiations and comes after days of behind-the-scenes horse trading, including back-and-forth funding offers, between Senate Republicans and House Democrats as they hunted for a path to a deal. In the meantime, Congress passed another very short-term spending bill last week, giving lawmakers until Dec. 20 to prevent a shutdown. To do that, they'll either need to pass the fiscal 2020 bills or another continuing resolution. Although the House has passed 10 of the 12 Fiscal Year (FY) 2020 bills and the Senate has passed four, lawmakers hadn't been able to reach a final deal on any of them “as they awaited the deal on the top-line numbers.” Shelby and Lowey said they want to pass each of the 12 funding bills by Dec. 20. That gives them less than a month — roughly 15 session days — to iron out the details of the bills and get them through both chambers. "The subcommittees are getting to work immediately in an effort to pass all 12 bills before the CR expires on Dec. 20," The Hill reported. The deal on subcommittee allocations adheres to the defense and nondefense caps agreed to as part of a two-year budget deal announced in July. Under that agreement, overall defense spending was $738 billion for fiscal 2020, while nondefense spending was $632 billion. The agreement between Shelby and Lowey does not resolve all of the remaining issues, including the “looming fight over the border wall, The Hill said. The House included no money for new border barriers in its Department of Homeland Security bill, while the Senate included $5 billion for the border in DHS as well as an additional $3.6 billion that could be reprogrammed from military projects to the border,” The Hill said. Democrats are also eager to block President Trump from reprogramming funds for the wall under emergency powers, a major sticking point with Republicans. Now it is up to the subcommittees to try to work out several tough policy differences, including the wall. "Individual funding items are being left to the subcommittees in keeping with long-standing committee practice," The Hill reported. In addition, other policy fights — including policies related to abortion and the number of Immigration and Customs Enforcement beds—are significant potential roadblocks for negotiators as they draft the FY 2020 bills. While many members have been skeptical that it would be possible to pass 12 appropriations bills by the new December deadline, The Hill says its sources expressed optimism that the timeline was achievable. Lowey and Shelby’s ability to strike a deal on the allocations had been a major stumbling block for weeks. Appropriators had noted that without a deal before Thanksgiving, the new deadline was “ambitious.” “If they can get those numbers done, I still think we have time to get those bills done before the end of the year when we get back,” Rep. Tom Cole, R-Okla., an appropriator, said ahead of the announcement of the deal last week. Senate Minority Leader Charles Schumer, D-N.Y., warned the President to stay out of the funding negotiations as lawmakers head toward the Dec. 20 deadline. "On the first path, President Trump stays out of our way and gives Congress the space to work together and find an agreement," he said. "On the second path, President Trump stomps his feet, makes impossible demands and prevents his party, the Republicans, from coming to a fair arrangement." So, we will see. It appears now that numerous members prefer the newly proposed budget levels to those that would be used if another CR is required. At the same time, the remaining time is very short and several of the potential remaining issues are highly contentious. These talks include very high stakes and should be watched closely by producers as they proceed, Washington Insider believes.
| Rural Advocate News | Monday November 25, 2019 |
Grassley Waiting On EPA’s Next Move On Ethanol Targets Sen. Chuck Grassley, R-Iowa, again met with President Donald Trump on the issue of biofuel policy, but said he wants to see EPA’s final plan before he is willing to say that the agency will live up the pledge on making sure that 15 billion gallons of conventional ethanol get used. “I left the meeting satisfied that the president was saying the same thing — and [EPA Administrator Andrew] Wheeler heard him say it — said we got to produce 15 billion gallons,” Grassley said. Grassley said he told Trump that EPA’s actions since a September meeting on the topic “leaves a lot of questions whether or not we are going to get the 15 billion gallons that we said we were going to get.”
| Rural Advocate News | Monday November 25, 2019 |
China’s Xi Insists Country Wants Phase One Deal With US Chinese President Xi Jinping said the country wants to reach an initial trade deal with the U.S. but also was not afraid to retaliate if need be. "We want to work for a 'phase one' agreement on the basis of mutual respect and equality," Xi said at an international forum in Beijing organized by Bloomberg. "When necessary we will fight back, but we have been working actively to try not to have a trade war. We did not initiate this trade war and this is not something we want." He also commented that China has a “positive attitude” on the trade talks. Xi met with former U.S. Secretary of State Henry Kissinger Friday, with Xinhua reporting Xi stated that the two sides need to boost communications when it comes to strategic issues so as to avoid misunderstandings. Chinese diplomat Wang Yi Wang Yi said on Friday the U.S. needs to meet China halfway and should promote healthy and stable development of bilateral relations. Meanwhile, the South China Morning Post quoted Ian Bremmer of the Eurasia Group political consulting firm as saying the Hong Kong issue will not impact the trade deal provided things do not escalate. “I was with Liu He two nights ago, it was very clear to me in his level of, not confidence but certainly hopefulness, and cautious optimism that we will move to a phase one deal and that Hong Kong was not going to play into that,” Bremmer stated. "President Trump has made it clear that he is not going to talk about Hong Kong, and not allow it to interfere as long as they are discussing trade." President Donald Trump today told Fox Business News that “We have a deal potentially, very close, he [Chinese President Xi Jinping] wants to make it much more than I want to make it, I am not anxious to make it,” As for Hong Kong, Trump said the U.S. has to “stand with Hong Kong, but I am also standing with President Xi.”
| Rural Advocate News | Monday November 25, 2019 |
Monday Watch List Markets USDA's weekly report of grain export inspections will be released at 10 a.m. CST Monday, as usual, but don't be surprised if trade is quiet ahead of Thursday's Thanksgiving holiday. With corn still in the fields, USDA announced Monday's 3 p.m. Crop Progress report will not be the final one in 2019, as originally scheduled. More Monday reports will follow until harvest gets closer to finishing. Weather Snow and some mixed precipitation from eastern North Dakota through northern Minnesota during Monday. Snow and rain through the Pacific Northwest with snow through the north and central Rockies region into western Nebraska. Little of note elsewhere in the key U.S. crop and livestock areas Monday . Favorable for the delayed harvests of corn and soybeans and mostly favorable for winter wheat. In South America, rain and thunderstorms have developed in the central Argentina corn and soybean belt while in Brazil it will be drier and warmer Monday. Mostly favorable conditions for planting and developing crops at this time.
| Rural Advocate News | Friday November 22, 2019 |
Ag Exports Projected to fall $5.2 Billion in 2019 The Department of Agriculture projects the fiscal year 2019 U.S. agricultural trade balance to fall to $5.2 billion. USDA’s Economic Research Service projects exports at $134.5 billion, and imports at $129.3 billion, leaving a $5.2 billion surplus, the lowest since fiscal year 2006. Unlike overall U.S. trade in goods and services, U.S. trade in the agricultural sector consistently runs at a surplus. Although agricultural exports have increased in value since 2016, the value of imports has risen at a slightly faster rate, leading to a declining trade balance. Compared to the previous outlook in May 2019, exports were revised down by $2.5 billion, while imports were raised by $0.3 billion. The decline in expected export value was primarily due to lowered expectations for corn and soybean exports. For imports, the increase in the forecast was due in part to an increase in the expected value of horticultural imports, such as fruits and vegetables. Initial projections for fiscal year 2020 suggest a small recovery in the agricultural trade balance to $8.0 billion. ************************************************************************************* China Phase One Delays Continue, China Claims Talks on Track Promised for mid-November, reports this week suggest an agreement and signing of the so-called phase one trade deal with China faces delays until mid-December. However, China maintains that the talks are on track. A Chinese government spokesperson told reporters this week “China is willing to work with the United States to resolve each other’s core concerns," adding the "external rumors" regarding the unraveling of the agreement are not true. China has invited the United States to Beijing for talks, possibly next week before the Thanksgiving holiday. Chinese officials suggested the deal could be signed in early December. Despite the claims by China, markets appear to sluggish on any trade news, seemingly growing tired of delayed promises of agreements and little progress. President Donald Trump says the phase-one agreement would include $40-50 billion worth of U.S. ag trade to China over a two-year period. U.S. farm exports to China reached nearly $20 billion before the trade war began, but since fell roughly 50 percent. ************************************************************************************* Farm Bureau Calls for Improvements to Ag Labor Bill While many farm groups seem pleased with the House labor bill, the American Farm Bureau Federation says it falls short of a long-term solution. AFBF President Zippy Duvall says that "While welcome, these changes unfortunately fall short of assuring that American producers will be able to keep their farms going." Changes made to the Farm Workforce Modernization Act before introduction improve the ability of farmers to retain H-2A workers, take a small step toward protecting farmers from frivolous litigation, and add a study to examine whether the H-2A program affects U.S. farmers’ ability to compete with foreign ag imports. However, AFBF says the key amendments not included in the bill would ensure a fair and competitive wage rate and limitations on the use of federal courts to solve workplace grievances. Duvall says that “once Congress passes legislation, no one will have an appetite to revisit the issue and simply put, this bill’s approach is not yet good enough.” ************************************************************************************* Hahn Pledges Transparent Dairy Labeling in Confirmation Hearing The National Milk Producers Federation welcomed comments made during a confirmation hearing of President Donald Trump’s nominee to lead the Food and Drug Administration. The hearing briefly touched on dairy labeling transparency. NMPF and others are seeking a labeling system that prohibits plant-based dairy imitators from using dairy marketing terms. Rules already do so, but FDA has not enforced them. Hahn voiced his support for “clear, transparent, and understandable labeling for the American people.” Hahn says, “people need this so that they can make the appropriate decisions for their health and for their nutrition.” NMPF President and CEO Jim Mulhern says, “It’s heartening to hear the nominee pledge that an FDA under his leadership will immediately examine this crucial unfinished business.” The comments by Hahn came before the Senate Health Committee. Committee Chairman Lamar Alexander, a Republican from Tennessee, called Hahn an “impressive choice” to lead the FDA. Ranking member Patty Murray, a Democrat from Washington, demanded Hahn commit to putting science, data and families first. ************************************************************************************* New Motor Oil Made with High Oleic Soybean Oil Now Available on Amazon America’s drivers have a new choice that unites performance and sustainability at a competitive cost, according to the United Soybean Board. Biosynthetic® Technologies’ biobased synthetic motor oil, using high oleic soybean oil from U.S. soybeans, is now on commercial shelves. USB Director Mike Korth, a Nebraska Farmer, says, “Soy-based motor oil is another great opportunity to drive demand for U.S. soybeans" and meet consumer sustainability demands. Biosynthetic Technologies’ motor oil is also recognized as a USDA Certified Biobased Product in the United States Department of Agriculture’s BioPreferred Program. The company will market both 5W-20 and 5W-30 through Amazon.com and direct from their website. The product is available for purchase and use immediately. Biosynthetic is also offering farmers a limited-time 20 percent discount to purchase the synthetic oil. They can use code BioTrialFarm available only at motoroil.biosynthetic.com through January 31. USB and USDA have supported the soy-based, drop-in synthetic alternative to petroleum-based motor oil, calling the oils well-suited for high-temperature automotive and industrial applications. ************************************************************************************* Farm Bureau Survey: Thanksgiving Dinner Cost Rises Only a Penny An annual survey finds the Thanksgiving Day dinner average cost this year for ten is $48.91, less than $5.00 per person. The American Farm Bureau Federation’s 34th annual survey on Thanksgiving Day meal items increased just once cent from last year. The centerpiece on most Thanksgiving tables, the turkey, costs slightly less than last year, at $20.80 for a 16-pound bird. That’s roughly $1.30 per pound, down four percent from last year. Survey results show retail turkey prices are the lowest since 2010. Although the overall average cost of the meal was about the same this year, there were some price changes for individual items. In addition to turkey, foods that showed slight price declines include cubed bread stuffing and canned pumpkin pie mix. Foods showing modest increases this year included dinner rolls, sweet potatoes and milk. Meanwhile, despite the growing popularity of prepared foods, 92 percent of Americans celebrate Thanksgiving at home or at a family member’s home and most cook their entire meal at home, according to the survey.
| Rural Advocate News | Friday November 22, 2019 |
Washington Insider: Cautious Optimism on China Deal Bloomberg is reporting this week that China’s chief trade negotiator indicated he was “cautiously optimistic” about reaching a phase one deal with the U.S. in spite of “warnings of the dangers of escalating the tariff war” by experts. Vice Premier Liu He commented in a speech in Beijing on Wednesday ahead of the Bloomberg New Economy Forum. He also said he had invited his U.S. counterpart, U.S. Trade Representative Robert Lighthizer, to travel to China for talks this month but noted that “the invitation hasn’t yet been accepted.” On Thursday, former U.S. Secretary of State Henry Kissinger said America and China were in the “foothills of a Cold War,” and warned that the conflict could be worse than World War I if left to run unconstrained. Later in the day, former Treasury Secretary Henry Paulson also warned of the perils of decoupling the world’s two largest economies. President Donald Trump announced a “phase one” deal a month ago, but since that time, markets have been whipsawed by comments from both sides, first indicating progress, and then the opposite. The latest potential hurdle came after Liu made his dinner-time comments, when the U.S. House voted 417-1 for legislation supporting Hong Kong protesters that has already been unanimously approved by the Senate. The President said earlier that he plans to sign the bill, Bloomberg said. Liu also explained China’s plans for reforming state enterprises, opening up the financial sector, and enforcing intellectual property rights, issues at the core of U.S. demands for change in China’s economic system. However, in a separate comment, he told one of the attendees that he was “confused” about the U.S. demands but was confident the first phase of an agreement could be completed nevertheless. Liu’s remarks cushioned declines in stocks in Asia, Europe and the U.S. as investors weighed the impact of the House bill on relations between the world’s two largest economies. U.S. and Chinese trade negotiators will continue communicating closely and work toward a phase one deal, Ministry of Commerce spokesman Gao Feng said at a briefing in Beijing on Thursday. Responding to questions including whether the two sides agreed on agricultural purchases and tariff removal, as well as a media report on the timetable for a deal, Gao said related rumors were not accurate. It was unclear exactly what he was referring to. If efforts to reach a phase one deal fail before Dec. 15, the White House has threatened to impose 15% tariffs on some $160 billion in imports from China. While the Hong Kong bill is a negative factor for the phase one deal, China still may be able to reach an agreement with the U.S. this year, said Zhang Yansheng, who previously worked at the National Development and Reform Commission, the country’s top economic planning body. “The optimistic view is that the phase-one deal can be reached within this year – but a more pessimistic one is that the first phase will be dragged to some point next year,” said Zhang, who is now chief researcher at the China Center for International Economic Exchanges. Kissinger, 96, said he hoped trade negotiations would provide an opening to political discussions between the two countries. “Everybody knows that trade negotiations, which I hope will succeed and whose success I support, can only be a small beginning to a political discussion that I hope will take place,” he said. Kissinger spoke hours after Chinese Vice President Wang Qishan addressed the NEF, saying his country was committed to peace and would follow through on policy changes despite facing challenges at home and abroad. “Between war and peace, the Chinese people firmly choose peace,” he said. “We should abandon the zero-sum thinking and Cold War mentality.” The Forum is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News. Meantime, Paulson called on China to open more and said the U.S. should resist the temptation to delist Chinese firms from U.S. exchanges, calling it a “terrible idea.” Both countries should determine the rules of the road for high-end technology such as 5G, he said. “There will be some natural decoupling,” Paulson said. “But the delusions of a wholesale, comprehensive decoupling and an economic iron curtain will leave our countries, and the world, worse off. We need to avoid that outcome.” After almost two years of negotiations and escalations – and plenty of false dawns – trade negotiators from the U.S. and China are making progress in key areas, Bloomberg said. The negotiating teams are using their failed May proposal as a benchmark for how much a phase-one deal covers of the once-near agreement and how much tariffs will be removed as part of the initial deal. There’s been signs of a thawing on other fronts. The U.S. Commerce Department has started approving some suppliers’ applications for licenses to do business with China’s Huawei Technologies Co., partially reopening access to one of the biggest buyers of U.S. technology. However, Charlene Barshefsky, who negotiated China’s entry into the WTO, said that “No outcome is inevitable but two decades of careful management of the relations between China and the West have run its course.” So, we will see. The positive signals from China are certainly welcome in spite of the remaining large areas of uncertainty to be addressed. These are very important fights that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Friday November 22, 2019 |
USDA To Issue Final Rule On Export Sales Reporting Of Pork, Beef The fall 2019 regulatory agenda released by the Trump administration Wednesday included a notice that USDA intends to issue a final rule in December, which will clarify export sales reporting requirements. “The final rule would amend the Export Sales Reporting Requirements Regulation to clarify certain definitions as they relate to beef and pork, which are subject to this regulation to ensure accuracy of the weekly U.S. Export Sales report,” the notice said. This appears to be aimed at addressing details on things like the specific cuts that are to be reported to USDA and the timeline for making those reports to USDA. The most-recent sales data did show that nearly one half of the total for U.S. pork sales to foreign buyers were “late reported” sales.
| Rural Advocate News | Friday November 22, 2019 |
McConnell Chides House Democrats For Giving AFL-CIO Big Role In USMCA Process Senate Majority Leader Mitch McConnell, R-Ky., on Wednesday argued that Democrats are giving AFL-CIO President Richard Trumka too much sway in talks on the U.S.-Mexico-Canada Agreement (USMCA). “How ironic. We are talking about a trade deal that would create more American jobs, and Democrats are considering outsourcing their judgment to Big Labor special interests — who, to my recollection, have not supported a single major trade deal in living memory,” McConnell said on the Senate floor. This comes after Trumka met with House Democrats on USMCA, noting that changes are still needed in the trade deal to get his union to back the deal. Meanwhile, Mexico’s Congress delayed the government’s 2020 spending bill, which includes proposed funds to implement the labor reforms required under the USMC
| Rural Advocate News | Friday November 22, 2019 |
Friday Watch List Markets On the Friday before Thanksgiving, it is reasonable to expect quiet trade in ag futures, but there are a few items to note. An index of U.S. consumer sentiment is due out at 9 a.m. CST, followed by USDA's monthly cattle on-feed and cold storage reports at 2 p.m. A possible trade meeting is brewing with China and any comments or related news will get attention. Weather Rain and snow are in the Southern Plains, and rain from the far Southern Plains to the eastern Great Lakes, will be the areas of precipitation Friday. Drier conditions will be in place elsewhere.
| Rural Advocate News | Thursday November 21, 2019 |
GREEN Act Would Extend Renewable Energy Tax Incentives A renewable energy bill includes biodiesel tax extenders, although the legislation’s future is uncertain. This week, California Democrat Mike Thompson introduced the Growing Renewable Energy and Efficiency Now, or GREEN Act, in the House of Representatives. Thompson says the bill will “build on existing tax incentives that promote renewable energy and increase efficiency.” The bill would extend the currently expired biodiesel tax credits through a multiyear extension. The legislation would keep the credit at its current rate of $1.00 per gallon for 2018 through 2021 but gradually reduce it to $0.33 per gallon by 2024. The National Biodiesel Board supports the legislation, as the industry seeks certainty. Since the start of the year, ten biodiesel plants have been forced to cut production or close and lay off workers due to policy uncertainty. However, the fate of the bill is unclear, as Democrats and Republicans clash over so-called “green” legislation and climate issues. Among other things, the bill would promote green energy technologies, increase energy efficiency, and support use of zero-emission transportation and infrastructure. ************************************************************************************* Growth Energy Celebrates New York’s Move to E15 Growth Energy calls New York's move to E15 a "major regulatory victory" that will open the nation's fourth-largest fuel market to E15 Under a rule finalized Wednesday by the New York Department of Agriculture. New York will become the newest state to allow the sale of E15, which is approved for all vehicles model year 2001 and newer. Growth Energy CEO Emily Skor says the organization “looks forward to working with retailers across the state to quickly get E15 into the market.” Over the last five years, Growth Energy has worked together with community leaders, retailers, farm advocates, and biofuel supporters across New York to push for an update to the state’s fuel regulations. Western New York Energy President and CEO Timothy Winters says the update “will allow more New York motorists to make their own decisions about purchasing renewable fuel blends.” Last month, American drivers topped 11 billion miles on E15, and adoption rates continue to rise following recent regulatory changes by the EPA to permit year-round sales of the fuel. ************************************************************************************* Farmers Receive 12 Cents of the Thanksgiving Food Dollar Farmers and ranchers take home just 12.1 cents from every dollar that consumers spend on their Thanksgiving dinner meals, according to the National Farmers Union. NFU’s annual Farmer’s Share publication compares the retail food price of traditional holiday dinner items to the amount the farmer receives for each item they grow or raise. On average, farmers receive 14.6 cents of every food dollar consumers spend throughout the year, more than the recent study finds. NFU President Roger Johnson says, “We’re in the midst of the worst farm economic downturn in generations, and we’re hopeful the Farmer’s Share can help illustrate that fact to the general public.” Wheat farmers averaged a meager $0.03 on 12 dinner rolls that retail for $2.69. Dairy producers received only $1.66 from a $4.59 gallon of milk. And turkey growers, who raise the staple Thanksgiving dish, received just $0.06 per pound retailing at $1.49. Johnson says that $0.06 figure—while striking on its own—is particularly shocking when considering the fact that poultry integrators received $0.62 per pound. ************************************************************************************* Plant Response Biotech, Koch Biological Solutions Merge Plant Response Biotech and Koch Biological Solutions, LLC. have combined operations to form Plant Response Biotech, Inc. The new venture will leverage both companies' complementary capabilities, assets and product offerings. Plant Response Biotech is a plant biotechnology company specializing in plant innate immunity, plant physiology and nutrient use efficiency. It has developed several product candidates which are approaching commercial launch status in the areas of drought tolerance and plant health. Koch Biological Solutions focuses on developing science-based, live microbial and biologically derived chemistries that improve plant performance at every stage of growth. Through various modes of action, their biological solutions perform directly on the plant or its environment to improve crop efficiency and nutrient uptake, maximizing yield potential. Tom Warner, chairman of the board for the new Plant Response Biotech, says of the move, "These companies are naturally complementary, and it made tremendous sense to bring the two together.” The new company will be headquartered in Raleigh, North Carolina, with operations in California and Spain. ************************************************************************************* USDA Invests in the Expansion of Rural Education and Health Care Access The Department of Agriculture Wednesday announced a $42.5 million investment for education and telemedicine projects in parts of rural America. The effort will fund 133 projects in 37 states and two U.S. territories through the Distance Learning and Telemedicine grant program, benefiting 5.4 million rural residents. DJ LaVoy, USDA Deputy Under Secretary for Rural Development, says the program helps “rural residents to take advantage of economic, health care and educational opportunities without having to travel long distances.” The funded projects include $488,000 for Mississippi State University to update video conferencing equipment in 93 counties. USDA’s investment will enable participants in extension offices and experiment stations to deliver educational programming to interactive audiences. In Ohio, the Lisbon Exempted Village School District is receiving a $323,000 grant to create a distance learning network at eight sites within one county. The district will offer classes and behavioral health services to 850 students. Information on additional projects funded by the effort is online at www.rd.usda.gov.
| Rural Advocate News | Thursday November 21, 2019 |
Washington Insider: Pressure to Complete the New NAFTA Pressures are building on Democrats from rural areas, many of whom face tough re-elections in 2020, Bloomberg is reporting this week. This group is “pushing their party leaders to complete the U.S., Mexico, Canada trade pact before the end of the year to give them a solid legislative achievement—but also to “undercut GOP criticism that they are doing nothing but impeachment.” “It’s only going to get harder to make a good deal as we get closer and closer to the presidential election,” said Rep. Ben McAdams, D-Utah. “There’s a window right now to get it done.” An agreement between House leaders and U.S. Trade Representative Robert Lighthizer is close to being done with enforcement provisions on labor and environment still being ironed out, Bloomberg said. AFL-CIO President Richard Trumka met with freshman Democrats on Tuesday morning to convey the message that it’s important to strengthen labor enforcement in the final deal. Rep. Cindy Axne, D-Iowa, said she told Trumka that while she supported the enforcement of labor regulations, farmers and manufacturers in her district were hurting due to the trade war and tariffs, which a new trade agreement would alleviate. “The longer we wait, [the more] it increases the pain the folks in Iowa like our farmers are getting right now,” she said. Several lawmakers alluded to criticism that they were doing little besides impeachment. President Trump has branded them “Do-Nothing Democrats” despite the 100-plus bills the House passed this year, Bloomberg said. “I was sent here by the people of my district to get things done and one of those big-ticket items is a solid trade deal with Mexico and Canada,” Rep. Anthony Brindisi, D-N.Y., said, leaving the meeting with Trumka. “That’s what my district wants and that’s what I’m trying to get towards.” McAdams said an agreement might be “even more important now, in light of the impeachment inquiry, that we show our constituents that we are still moving forward legislation that is good for the public.” Other lawmakers are working to calm the anxieties of the freshmen by emphasizing the need for not merely a good deal but one they can stand behind for decades. Rep. Elissa Slotkin, D-Mich., said veteran House members warned her they were still facing negative reaction from their 1993 vote on NAFTA. “The senior members are making it very clear that we all understand the stakes,” she said. Rep. Jimmy Gomez, D-Calif., a member of the group of Democrats meeting with Lighthizer, said the freshmen haven’t been shy about making their needs known. “They’re feeling a lot of pressure,” he said. “But in the end, they still need a good agreement to vote for and something they don’t have to run away from.” The trade deal still could get done before the end of the year, although it’s competing for attention and floor time with the impeachment inquiry and with work on an agreement on how to fund the government for the rest of Fiscal Year (FY) 2020. The House passed another continuing resolution Tuesday to fund the government until Dec. 20. Draft language for the trade agreement is being exchanged, Gomez said, and added that the final language could be complete a few days after a final agreement is reached. “Anything is possible, to be honest with you,” he said. So, we will see. Observers argue that work is progressing steadily on the new NAFTA, even though they say they recognize that pressure for speed is often the “enemy of a thoroughly vetted and refined final product.” Nevertheless, there seems to be growing optimism regarding the evolving deal, so the process is one producers should continue to watch closely as it progresses, Washington Insider believes.
| Rural Advocate News | Thursday November 21, 2019 |
Farm Credit System Weathering Farm Income Situation Officials from the Farm Credit System testified before a House Ag subcommittee Tuesday, telling the panel the ag lender is so far weathering the farm income difficulties. Large payouts to farmers under the Market Facilitation Program (MFP) are providing help, officials said, but they noted that farm debt has grown some $41 billion in the last three years. The farm bill safety net programs are working as they should, officials said. USDA next week will update its farm income forecast for 2019 and issue its outlook for 2020 and that is expected to continue to show that government payments are making up a greater share of U.S. farm income. But, conditions remain better than those seen in the 1980s.
| Rural Advocate News | Thursday November 21, 2019 |
FERC Approves Temporary Emergency Shipment of Propane to Midwest Temporary emergency shipment of propane from Texas to the Midwest has been approved by the Federal Energy Regulatory Commission (FERC). The pipeline company asking for the action said “record demand for propane is due to an unusual coincident increase in heating demand, resulting from unseasonably cold weather in the region, and crop drying demand.” There were no comments or protests filed on the request and FERC determined the matter is accepted effective November 13. In addition, FERC announced it will “initiate an alternative dispute resolution (ADR) process with pipeline companies, shippers and their representatives to explore actions FERC and industry can take to alleviate propane pipeline constraints in the Midwest.”
| Rural Advocate News | Thursday November 21, 2019 |
Thursday Watch List Markets As usual, 7:30 a.m. CST is a busy time Thursday with weekly grain export sales, weekly jobless claims and the U.S. Drought Monitor set for release. Early Thursday, the National Weather Service will have new forecast for December, in addition to its usual forecasts. U.S. existing home sales and leading index of U.S. indicators are out at 9 a.m., followed by natural gas storage at 9:30 a.m. and an update of U.S. propane supplies Thursday afternoon. Weather Thursday features rain and snow in the Midwest, disrupting harvest and transportation. Rain is also in store for portions of the Southern Plains, offering some moisture for winter wheat. In South America, rain is indicated over northeastern crop areas of Brazil.
| Rural Advocate News | Wednesday November 20, 2019 |
USMCA 2019 Deadline Nears Fewer and fewer days remain for Congress to pass the U.S.-Mexico-Canada Agreement in 2019. Washington is sending mixed signals on whether the deal can be completed this year. Some lawmakers have suggested the House stay in session an extra week, adding time to the calendar to wrap up business before Christmas. Meanwhile, last week, House Speaker Nancy Pelosi said a labor deal in USMCA was "imminent." However, President Donald Trump claimed this week Pelosi was holding up the trade deal to gather more votes in favor of impeaching Trump. Representative Richard Neal, who chairs the Democrats USMCA working group, last week suggested union support was within reach, adding “we need it.” AFL-CIO President Richard Trumka met with Pelosi and other Democrats Tuesday, while also vowing during an unrelated speech to not allow Democrats to fold on core issues. Trumka stated that until USMCA includes stronger labor standards, “there is still more work to be done,” according to Reuters. Democrats leaving the meeting were skeptical that an agreement could be reached this year. ************************************************************************************* U.S., South Korea Reach Agreement on Guaranteed Market Access for American Rice The Trump administration Tuesday announced an agreement to allow U.S. rice more market access in South Korea. Under the agreement, Korea will provide access for 132,304 tons of U.S. rice annually, with an annual value of approximately $110 million. Korea also agreed to important disciplines to ensure transparency and predictability around the tendering and auctioning for U.S. rice. U.S. Trade Representative Robert Lighthizer says the announcement “will prove enormously beneficial for American producers.” Agriculture Secretary Sonny Perdue says the exports “are critical for the economic health of the U.S. rice industry,” as half of the U.S. rice crop is exported annually. Perdue called the announcement “another great testament of President Trump’s determination to expand export opportunities” for farmers and ranchers. The agreement gives the U.S. the greatest volume of guaranteed rice market access in Korea ever secured by the United States. Additionally, the agreement provides U.S. suppliers with enhanced disciplines related to the administration of the U.S. country-specific quota. The agreement will enter into force on January 1, 2020. ************************************************************************************* Midwest lawmakers Introduce Fair Trade Legislation A group of Senators from the Upper-Midwest Tuesday introduced a bill to crack down on trade cheating. Legislators say the Play by the Rules Act will hold China accountable for ignoring trade rules and harming American workers. U.S. anti-dumping and countervailing duty laws are designed to stop trade partners from tipping the scales in their favor and forcing American workers to compete at a disadvantage. The rules are widely used and mostly followed by World Trade Organization members. However, nonmarket economies—like China—are engaged in a sophisticated and government-backed effort to avoid paying the duties required by the rules, according to the lawmakers. The bill provides the Commerce Department additional flexibility when reviewing anti-circumvention petitions filed against nonmarket economies like China. The flexibility will allow the Commerce Department to better combat China’s attempts to cheat U.S. workers and businesses. Senate Democrats Tammy Baldwin of Wisconsin, Debbie Stabenow of Michigan, along with Senate Republicans Shelley Moore Capito of West Virginia, and Bill Cassidy of Louisiana, introduced the bipartisan legislation. ************************************************************************************* Tyson to Reopen Kansas Beef Plant Next Month Tyson will reopen a Kansas beef processing facility next month, following repairs prompted by an August fire that disrupted operations at the facility. This week, Tyson announced repairs at the Holcomb, Kansas facility are nearly complete, and efforts to resume beef processing are planned for the first week of December. The company expects the plant to be fully operational by the first week of January. The fire severely damaged a critical part of the plant containing the hydraulic and electrical systems that support the harvest floor and cooler areas. Reconstruction included completely replacing support beams and the roof, hydraulic piping and pumps, installing over 50,000 feet of new wiring and the reconstruction of all new electrical panel rooms and equipment. The fire disrupted cattle markets and processing as the facility reduced industry slaughter capacity by six percent. A Department of Agriculture Investigation into beef pricing practices following the fire should wrap up by the end of this year. ************************************************************************************* USDA Begins 2019 Organic Survey The Department of Agriculture's National Agricultural Statistics Service will mail letters with survey codes this December to more than 22,000 organic producers. Specifically, the surveys target producers involved in certified or transitioning to certified organic farming for the 2019 Organic Survey. Each producer who self-reported organic farming in the 2017 Census of Agriculture will receive a unique survey code to respond conveniently online and to be represented in this once-every-five-year data. The 2019 Organic Survey results will expand on the 2017 Census of Agriculture data by looking at several aspects of organic agriculture during the 2019 calendar year, including production, marketing practices, income, expenses and more. Producers who receive the 2019 Organic Survey are required to respond by federal law, as this survey is part of the Census of Agriculture Program. The same federal law that requires response also requires NASS to keep all individual information confidential. The deadline for response is January 10, 2020. Results will be available in October 2020. For more information about the Organic Survey, visit www.nass.usda.gov. ************************************************************************************* E15 Summer Sales up 46 Percent Growth Energy recently announced that summer sales of E15 increased 46 percent in 2019, compared to 2019, on a per-store basis. E15 contains 15 percent ethanol or another renewable biofuel and is now often sold as Unleaded 88 at the pump. Growth Energy CEO Emily Skor says the “explosive growth in summer sales” demonstrates consumers “will come back again and again,” to E15, once available and they know the benefits of the fuel. She says the industry expects to see interest from retailers and consumers alike continue to grow. 2019 also saw an increase in retailers offering E15. Led by Casey's, the retail industry added 149 stores over the summer months. The 2019 summer driving season was the first summer Unleaded 88 was sold without restriction, and the increase “underscored the fuel's popularity with drivers” who have logged more than 11 billion miles using E15. Earlier this month, Growth Energy announced NASCAR drivers surpassed 15 million miles using E15, since launching a partnership with the ethanol industry in 2011.
| Rural Advocate News | Wednesday November 20, 2019 |
Washington Insider: Working to Avoid Another Congressional Shutdown News from the Congress this week includes a Bloomberg article that focused on efforts to avoid another Congressional shutdown. The report said that House Democrats on Monday released a four-week spending bill negotiated with Republicans to avert at least temporarily a federal government shutdown on Friday. The measure, which would extend funding through Dec. 20, would also keep the Export-Import Bank open through that date and would allow the Census Bureau to spend money at a higher rate to prepare for the 2020 head count, prevent an automatic cut to highway funding next year and provide the military with a 3.1% pay increase. The House announced plans to vote on the bill early this week, according to House Majority Leader Steny Hoyer, D-Md. Senate Majority Leader Mitch McConnell, R-Ky., said that Republican-controlled chamber will also vote on the measure this week. Current funding runs out at the end of the day Thursday. However, in spite of the high level of political tension just now, it appears that almost nobody wants another shutdown. For example, the White House has indicated that President Donald Trump is ready to sign the measure, McConnell said. Elements of the Foreign Intelligence Surveillance Act set to expire on Dec. 15 would be extended through March 15, 2020 under the proposal. The provisions allow expanded authority to wiretap terrorism suspects and to examine business records related to terrorism investigations. In addition, Senator Rand Paul, R-Ky., who opposes the FISA extension and single-handedly triggered a brief shutdown in the past, said Monday he doesn’t expect to block passage of the measure this week--although he hasn’t made a final decision. The bill would extend funding for community health centers through Dec. 20 and increase funding to combat Ebola in Africa. It would also provide a payment to the widow of the late Maryland Representative Elijah Cummings, a standard practice. The short-term spending measure is needed because Congress has failed to agree on any of the 12 annual spending bills needed to fund government agencies for the fiscal year that began Oct. 1. House Speaker Nancy Pelosi, D-Calif., and Treasury Secretary Steven Mnuchin agreed in July on a $1.3 trillion budget cap for fiscal 2020, raising hopes that the 12 spending bills could be enacted quickly. Instead, disputes over President Trump’s border wall have hampered the appropriations committees’ ability to set top spending levels for each of the 12 bills under the overall cap. The administration budget asked for $9 billion in new wall funding and Senate Republicans have proposed providing $5 billion, while House Democrats have vowed to provide no new money. The two parties are also arguing over whether to replenish military accounts that the president raided earlier this year to fund the wall, a move that has been challenged in court and which Democrats argue was unconstitutional. Pelosi and Mnuchin met last week with Senate Appropriations Chairman Richard Shelby, R-Ala., and House Appropriations Chairwoman Nita Lowey, D-N.Y., to try to break the impasse. Afterward, Lowey said the group is aiming for a deal on top spending levels by the end of this week, but talks have made little headway. The White House has said the president would be willing to sign a stopgap spending bill as long as it doesn’t hinder the president’s executive authorities, including the ability to spend the transferred wall money. So, we will see. Most of the Washington tea-leaf readers are being extremely cautious just now even though it appears that few, if any, are actively pushing for another shutdown fight. Still, these are certainly tense times and even the development of the annual budget should be watched closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Wednesday November 20, 2019 |
Global Trade Is Set To Stay Weak As 2019 Draws To A Close The World Trade Organization's trade barometer shows some stabilization for the global flow of goods, albeit at low levels. The WTO's Goods Trade Barometer recorded signs of a pickup in export orders, container shipping and automobile shipments, offset by weakness in airfreight, and shipments of raw materials and electronic components. This signals international trade is likely to end the year having risen at the slowest pace since 2009. Trade flows have been weakened by several developments, including the U.S.-China trade war and a slowdown in the global automobile industry.
| Rural Advocate News | Wednesday November 20, 2019 |
Farmer Payments Continue to Add Up Via MFP As USDA starts issuing the second round of payments under the 2019 Market Facilitation Program (MFP 2) this week, county FSA offices have been directed to prioritize processing the payments and wrap up that exercise by November 22. USDA said in a release the payments would go out from November 18-28. As the second round of payments starts rolling, the payouts thus far under MFP 2 total $6.899 billion. That includes $6.58 billion for non-specialty crops, $69.7 million for specialty crops, and $252 million for livestock. Midwest states and Texas lead the top states in terms of dollars received under the MFP 2 effort so far. The second round of payments is expected to total around $3.6 billion.
| Rural Advocate News | Wednesday November 20, 2019 |
Wednesday Watch List Markets In addition to weather and any news updates on trade with China, the U.S. Energy Department will release its weekly report of energy inventories, including ethanol, at 9:30 a.m. CST. At 1 p.m. CST, the Federal Reserve will release minutes from its most recent FOMC meeting, offering clues to future interest rate changes. Weather Wednesday will be dry across primary crop areas, offering one more day of favorable harvest conditions. The pattern turns wetter and colder with rain and snow Thursday. There is still almost one quarter of the U.S. corn crop still unharvested.
| Rural Advocate News | Tuesday November 19, 2019 |
Washington Insider: The President and the Fed It seems like a strange world when a presidential meeting with his Fed chair attracts significant media attention but the press is focusing pretty heavily on the recent session President Donald Trump held with Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin to discuss the economy. For example, Bloomberg noted that it was the second face-to-face sit-down this year “amid relentless White House criticism of the U.S. central bank.” Powell’s comments “were consistent with his remarks at congressional hearings last week,” the Fed told the press after the meeting adding that the gathering was at the president’s invitation. Bloomberg emphasized that the meeting came amid a steady stream of criticism of the Fed as the president “makes his economic record the center of his bid for re-election next year.” His attacks included an August tweet asking “Who is our bigger enemy, Jay Powell or Chairman Xi?" The report said the comments “shattered a decades-long White House tradition of avoiding public comment on monetary policy out of respect for the Fed’s independence.” In the recent meeting, Powell “did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy,” the Fed said. The President subsequently tweeted that they’d had a “very good & cordial meeting” and had discussed a range of issues including “interest rates, negative interest, low inflation, easing, dollar strength & its effect on manufacturing, trade with China, EU & others, etc.” The dollar dropped to a session low amid gains in the euro after press reports that that negative interest rates had been among their topics of conversation. Powell last week called the U.S. economy a “star” performer and voiced solid confidence that its record expansion will stay on track. He and other Fed officials have consistently said that European or Japan-style negative interest rates would not be appropriate in the U.S. Still, the chairman’s remarks on the economy reinforced a sense that officials judge they have done enough to keep the economy on track after three rate cuts this year and that monetary policy is now on a prolonged hold as long as the outlook remains favorable. Trump has publicly raged against Powell and the Fed for many months, complaining about the rate increases during 2018 and continuing to pound the central bank this year even as it has cut rates to keep a record U.S. expansion on track — as the president “seeks to deflect blame for slowing growth that many have pinned on his trade war with China,” Bloomberg said. With less than a year until the 2020 vote, the U.S. economy has been generally holding up this year on resilient consumption. GDP increased at a 1.9% annualized rate in the third quarter, though that was down from 2% in the second quarter and 3.1% in the opening three months of the year. Powell had dinner with Trump in February and the two have spoken since by telephone. Meetings between a president and Fed chief are rare but not unprecedented. Meetings this year, however, have come amid repeated public criticism by Trump that culminated late last year with press reports in December that the president had discussed firing the man he picked to lead the central bank. That direct threat to Fed independence — an article of faith among investors in U.S. assets, contributed to already steep stock-market losses that turned the month into the worst December for U.S. equities since the Great Depression. While the President has been critical of the Fed, he was responsible for choosing candidates for its policy-setting committee including four of the five current members. However, two vacancies remain open and he announced his intention to nominate at least somewhat controversial people for those jobs — most recently in July when he named Trump supporter Judy Shelton and St. Louis Fed research chief Christopher Waller. However, he has yet to actually nominate either. So, we will see. While the Fed appears to believe that several sectors of the economy are slowing, it also appears determined to avoid any significant exposure to inflationary policies or to weaken its political independence — policies investors widely applaud. This is a high stakes debate especially in these extremely politicized times and involves numerous battles producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday November 19, 2019 |
US-China Trade Talks Labeled ‘Constructive’ U.S. and Chinese trade negotiators held “constructive discussions” in a phone call on Saturday to address each side’s core concerns of Phase One of the trade deal. China’s Vice Premier Liu He spoke with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, according to the Chinese Commerce Ministry. The call was held at the request of the U.S. negotiators, and the two sides agreed to remain in close communication, it said in a statement. President Donald Trump had not yet agreed to remove any tariffs as part of a deal, and the size of China's commitment to purchase U.S. farm products was not yet clear, Commerce Secretary Wilbur Ross said on Friday in an interview on Fox Business Network. China's reluctance to commit to a specific amount of farm purchases remains a sticking point in the talks, as is U.S. reluctance to roll back tariffs.
| Rural Advocate News | Tuesday November 19, 2019 |
Midwest Lawmakers Press Energy Regulator for Action on Propane Midwest lawmakers are pressing the Federal Energy Regulatory Commission (FERC) to address issues with propane supply problems in the region, which are impacting producers as they seek to harvest this year’s corn crop. “Farmers are calling our offices looking for answers about what can be done,” said a group of House lawmakers led by House Ag Committee Chairman Collin Peterson, D-Minn. “Those who are lucky enough to have crops to harvest this year are now struggling with drying a wet corn crop.” Wet corn put into storage can start to spoil in as little as three days, the lawmakers pointed out. The lawmakers noted that trucks have been running to Kansas and Texas to bring additional supplies back to the Midwest, “and we appreciate efforts taken by several state governors and the Federal Motor Carrier Safety Administration to assist companies in this effort.” Iowa Republican Sens. Chuck Grassley and Joni Ernst also penned a letter to FERC Chairman Neil Chatterjee, asking the regulator to address the situation. “We understand that the nationwide supply of propane is adequate, but it is not in Iowa,” the letter said. Those with crops still standing in fields face issues, the letter said, along with livestock and poultry producers who are “concerned about supply with the winter months ahead,” with their offices receiving “numerous” calls. “As farmers continue to face obstacles with the trade disputes and late harvest this year, the cold weather and propane issue compounds frustration and financial struggles,” the Iowa lawmakers said.
| Rural Advocate News | Tuesday November 19, 2019 |
Tuesday Watch List Markets The only report on Tuesday's docket is U.S. housing starts, due out at 7:30 a.m. CST. North and South American weather forecasts remain of interest as well as any trade news concerning China. Weather Dry conditions will be in place over almost all primary crop areas Tuesday. Precipitation will be confined to light rain in the immediate Great Lakes. Conditions will generally favor late harvest for one more day before snow develops in the Northern Plains during midweek.
| Rural Advocate News | Monday November 18, 2019 |
USDA Announces Second Round of MFP Payments Ag Secretary Sonny Perdue announced the second round of Market Facilitation Program payments will be heading out to farmers suffering from trade retaliation by foreign nations. The payments will begin the week before Thanksgiving. Producers of eligible commodities will now be eligible to get 25 percent of the total payment expected, in addition to the 50 percent they already received. “The second round of payments, along with the already provided disaster assistance, will give farmers, who’ve had a tough year due to unfair trade retaliation and natural disasters, much-needed funds in time for Thanksgiving,” Perdue says. “While we continue to have confidence in the President’s negotiations with China, this money will show that President Trump is following through on his promise to help and support farmers as he continues to fight for fair market access. Earlier this year, President Trump authorized USDA to provide up to $16 billion in aid through various programs, which is in line with the estimated impact of the retaliatory tariffs on U.S. agricultural goods and other trade disruptions. ********************************************************************************************* Monopoly Concerns Surround DFA Acquisition of Dean Foods Dean Foods, one of America’s largest dairy companies, filed for Chapter 11 bankruptcy last week. A New Food Economy report says that leaves a lot of dairy producers up in the air about where they’ll be selling their milk in the future. The timing of the bankruptcy couldn’t be worse as milk prices are still low, even though they’ve bounced back somewhat in recent months. In the announcement last week, Dean Foods said it was “engaged in advance talks with Dairy Farmers of America about a possible acquisition.” DFA is the country’s biggest dairy cooperative. However, one antitrust expert says the potential deal causes serious concerns about anti-competitive activity. Cooperatives negotiate with processors like Dean Foods on behalf of producers to get the best price they can for their farmers. “The problem with DFA is the conflict of interest that will result from trying to lower prices to farmers to increase their revenue as a milk producer,” says Peter Carstensen, a University of Wisconsin Law School Professor. Some farmers have accused the co-op in the past of trying to suppress milk prices to maximize its profits. Dairy Farmers of America represents over 13,000 dairy producers and controls 30 percent of the milk production in the U.S. ********************************************************************************************* Moderate Democrats Now Pushing for USMCA More than a dozen House Democrats from key battleground states are now trying to rally support for the U.S.-Mexico-Canada Agreement. Politico says they held a special caucus meeting to talk through the issue. The push marks the newest sign that moderate House Democrats are getting impatient over a lack of movement toward getting the deal finally done. Some of the moderate Democrats worried about potential pushback from progressives, which they did get from Representatives Jan Schakowsky (Sha-KOW-skee) and Bill Pascrell. Schakowsky did say after the meeting that she’s confident they can reach an agreement before the end of this year. However, she cautioned those who are “anxious just to move the deal,” saying they need to make sure it gets done the right way. Late last week, House Speaker Nancy Pelosi gave a positive indication of USCMA’s fate in Congress. The California Democrat said a deal between House Democrats and the Trump Administration was “imminent.” Politico says that means an announcement could be coming within days. “I do believe if we can get this to a place it needs to be, which is imminent, this can be a template for future trade agreements,” she said. “A good template.” ********************************************************************************************** Biodiesel Coalition Sends Joint Letter to Congress on Tax Incentives The National Biodiesel Board teamed up with 140 member companies, allied trade associations, and industry partners to send a letter to House and Senate leadership on expired tax incentives. They’re asking Congress to extend those incentives before the end of 2019. The Hagstrom Report says the letter attempts to convince Congressional leadership that an “immediate extension of the biodiesel tax incentive is vital to prevent a severe economic disruption of the U.S. biodiesel industry.” The groups say 10 biodiesel plants have closed or cut back on production since the start of 2019. Several hundred workers have been furloughed and as the economic impact spreads across the U.S. economy, it will impact more than 7,500 jobs. Connecticut, Georgia, Indiana, Iowa, Michigan, Mississippi, Missouri, Pennsylvania, and Texas have all seen work slowdowns or stoppages at their biodiesel plants. NBB Vice President of Federal Affairs Kurt Kovarik says an immediate extension of the tax credit is vital to prevent more plants from closing, more production cutbacks, as well as potentially many more jobs being lost. “Continued uncertainty about the tax incentive impacts businesses, workers, and industry partners across the economy and in every state,” Kovarik adds. “The number of companies and trade groups that joined us on the letter demonstrates the broad impact of the expired incentives.” ********************************************************************************************** Farm Finances Weaken Further Amid Uncertainty Farm credit conditions within the Federal Reserve’s Tenth District steadily deteriorated in the third quarter of 2019. The Kansas City Fed Report says in spite of a slight increase in the price of some agricultural goods, as well as additional support from government payments, farm income declined at a modest pace. Loan repayment rates also declined at a modest pace in the third quarter. District bankers say agricultural economic conditions were influenced by uncertainty about crop production, agricultural trade uncertainty, as well as a variety of other factors, all contributed to commodity price fluctuations. Continuing weakness in the ag sector put even more pressure on farm finances. Signs of modest increases in credit stress continued in the third quarter of 2019. Farm borrowers made additional cuts in spending in response to the continued lower-revenue environment. 75 percent of bankers reported farmer working capital deteriorated at least modestly in 2019, compared with 90 percent as recently as 2016. However, farmland values continue to be a positive note in the sector. Those values remained stable and continue to provide ongoing support to an otherwise struggling economic sector. ********************************************************************************************** House Ag Chair Leads Letter on Midwest Propane Shortages House Ag Committee Chair Collin Peterson of Minnesota and a group of bipartisan lawmakers sent a letter to the Chair of the Federal Energy Regulatory Commission. The letter sent on behalf of farmers and rural residents in the Midwest is intended to bring awareness of the need for a continued supply of propane to the Midwest states. The letter details how farmers and grain elevator operators are dealing with propane shortages while trying to finish harvest and prepare their grain for storage. The propane shortage is hitting because of early cold temperatures in the region, which has picked up residential use of propane to heat homes. Back in 2014, the commission took extraordinary measures to address catastrophic conditions and shortages of propane. The letter is intended to remind commissioners that they do have the tools needed to help address the conditions facing rural communities. The letter says, “We hope to avoid a disastrous situation with cold temperatures and snow in the forecast spiking demand for residential deliveries just as farms are needing to heat poultry and livestock barns. Crop farmers also need to dry down their commodities after one of the most frustrating harvest seasons in years.”
| Rural Advocate News | Monday November 18, 2019 |
Washington Insider: Trade Policy Frictions and Evolution A major effort is underway now to build some form of agreement with China over trade policy, Bloomberg reported last week, but there also is a new cottage industry in Washington trying to predict what the next steps in these talks actually will be. Amid all that speculation, Bloomberg notes that although the administration began the fight with a carefully “calibrated trade weapon,” intended to rebalance the relationship between the world’s two biggest economies and to achieve a goal of forcing wholesale changes in China’s economic architecture while limiting the pain to businesses and consumers at home.” The original list of Chinese-made products was valued at $34 billion, matched an estimate of the annual cost to U.S. businesses of Chinese intellectual-property theft and forced technology transfers. “The items on the list were selected for their potential to inflict pain on industries Beijing has designated as strategically important while taking into account the potential disruption to U.S. supply chains. The task also was intended to throttle back China’s imports without endangering the president’s promised economic boom. However, that list was equal to 7% of the $505 billion in goods the U.S. imported from China in 2017 — and was seen as “almost as an affront” by the President who decreed it was “too low and demanded it be rounded up to at least $50 billion.” The result is what began as methodical, calculated penalties quickly became “a tit-for-tat tariff war” that includes more than 70% of bilateral trade in goods and threatens to decouple two economies that once seemed destined to become progressively more intertwined. In addition, if the two countries can’t resolve at least some of their differences quickly the White House will on Dec. 15 add 15% punitive tariffs on a further $160 billion—a move Bloomberg thinks “could jeopardize America’s record-long expansion.” These disruptions may yet be averted. President Trump and China’s president, Xi Jinping, appear intent on reaching at least a partial truce by mid-December and in mid-Nov President Trump again signaled he would refrain from a new tariff assault if Beijing agrees to a “phase one” deal that hinges largely on it stepping up U.S. agricultural purchases to as much as $50 billion within two years and curtailing intellectual-property theft. President Donald Trump sees this first step as the start of a more comprehensive agreement but Chinese officials quietly say they see any future successful phases as unlikely and that commodity purchases will at first simply be at the level they were before the Trump tariffs. Skeptics in the Trump administration also question whether Beijing is willing to close a larger transformative deal with a president running for reelection amid a slowing economy. Politicians and businesses across the board agree that the administration was right to take on China but many disagree with the approach used. At the same time, the issues being tackled in a first phase of the trade deal are much narrower than the ambitious goals the White House once claimed for itself. Douglas Irwin, an economic historian at Dartmouth, cautions that while Trump created an opportunity, he risks squandering it as well. “Are we going to look back and say, ‘This was all a failure’? I don’t think so,” says Wendy Cutler, a former U.S. trade negotiator who leads the Asia Society Policy Institute. “But if we end up comparing what they’re able to accomplish vs. their initial objectives, their accomplishments are going to fall way short. But wow, they certainly raised the stakes and certainly allowed U.S. interests to suffer through the tariffs in this effort.” Bloomberg argues that the picture that emerges from the administration’s policy moves focuses on its “impetuousness that confounded attempts at strategy.” Fears of an economic slowdown in the U.S. that coalesced in August appear to have changed the equation. Despite the diminished expectations, Trump and his allies are quick to defend his handling of the trade war. Critics, on the other hand, point to a U.S. trade deficit that’s on track to end 2019 some $150 billion larger than at the end of 2016 when the administration took office. A U.S. business community that wants both a short-term end to the uncertainty and longer-term fundamental changes in China’s economic governance is also wondering if it was all worth it. “What we all need now is a trade truce,” says Myron Brilliant, who heads the international division at the U.S. Chamber of Commerce. Whether the fight will prove worth it “will depend on what comes next.” Irwin, the Dartmouth professor, says that during the War of 1812, one slogan was “on to Canada!” — a promise to annex new territories. When the war ended it was, ‘Not one inch of territory ceded!’ ” The president “launched the trade war against China and promised to remake the economy.” Irwin says. “We are ending it by saying, ‘They are buying just as much stuff as they did before.’” So, we will see. This is certainly a political tense moment in Washington and both sides have extremely complicated perspectives. Certainly, the trade dialogue should be watched very closely as it unfolds over the coming weeks, Washington Insider believes.
| Rural Advocate News | Monday November 18, 2019 |
USDA’s McKinney Says Deputy-Level Talks Ongoing With China USDA Undersecretary Ted McKinney told Todd Gleason of the University of Illinois that there have been deputy level talks via video conference that have been ongoing. McKinney puts odds at “better than 50%” that there will be a signed agreement. “The warming trend continues,” he noted. However, in his remarks at the National Association of Farm Broadcasting, he said, “Maybe we can get to an eventual signing of a phase one agreement. There were a lot of negotiations going on and then they withdrew, backslid on a number of things.” But things are in “a warming trend,” he observed. “We’ve got a number of things lined to sell if they agree to it,” McKinney said. “But we also have to have some structural changes. We have been led down this path before only to see promises fizzle.” As for the deal, McKinney said, “So unless there is some enforcement opportunity, and unless there are some changes, even modest changes, in structural… how they apply things like please approve biotech traits at a time sooner than eight years, those kinds of things are very, very important and must haves. So we will see, but I am very optimistic.”
| Rural Advocate News | Monday November 18, 2019 |
Commerce’s Ross Sees High Probability of Phase One Deal With China Commerce Secretary Wilbur Ross was interviewed on Fox Business News this morning and stated he felt there were high odds of a Phase One trade deal between the U.S. and China. “You do not really have a deal on anything until you have a deal on everything, so it is not surprising that at the very last minutes pieces of bouncing around occur,” Ross stated. “But I think the main thing is what the President said at the rally last night: China wants to make a deal. We think we would like to make a deal if it is the right deal. This will get done in all likelihood.” He also observed that the Phase One deal is “relatively limited in scope” and the debate now is on the level of that limitation. “What is really being debated is how much limitation will there be on the scope of Phase One relative to Phase Two or maybe Phase Three. So, let's see what comes out. The devil is always in the details. And we are down to the last details now.” Ross was asked if China will stop stealing intellectual property and will President Trump remove the tariffs. Ross replied, “The president has not agreed to move the time so I think he made that pretty clear the other day, but let's just see what comes. I think the important thing is, it looks as though there will be this first giant step toward peace and quiet today with the Chinese, that is the important thing to focus on. We will see the details as they come through, and they are going to be good details or else the President will not go along with this.”
| Rural Advocate News | Monday November 18, 2019 |
Monday Watch List Markets A typical Monday schedule is in store with traders catching up on the latest weather forecasts for North and South America and any comments about trade that might have happened over the weekend. USDA's weekly report of grain export inspections is set for 10 a.m. CST, followed by the Crop Progress report at 3 p.m. Weather Monday features light rain in the northern Plains, causing some harvest delays. Other primary crop areas will be dry. Temperatures will have a wide range from below normal in the Midwest to much above normal in the southwestern Plains.
| Rural Advocate News | Friday November 15, 2019 |
China Drops Ban on U.S. Poultry Imports Ag Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer are both pleased that China lifted it’s “unwarranted ban” on U.S. poultry imports. “This is great news for both America’s farmers and China’s consumers,” Lighthizer said. “China is an important export market for America’s poultry farmers, and we estimate they will now be able to export more than $1 billion worth of poultry each year to China.” He says reopening China to U.S. poultry will also support thousands of workers employed by the U.S. poultry industry. Perdue says, “America’s producers are the most productive in the world and it’s critical they can sell to consumers in other parts of the world.” China had banned all U.S. poultry imports since January of 2015 because of an avian influenza outbreak, even though the U.S. has been free of the disease since August of 2017. The U.S. had exported more than $500 million worth of poultry products to China in 2013. The United States is the world’s second-largest poultry exporter, with global exports of poultry meat and products totaling $4.3 billion last year. ********************************************************************************************** Poultry Organizations say China Access Worth Billions The National Chicken Council, the National Turkey Federation, and USA Poultry and Egg Export Council all applaud China’s decision to lift its ban on U.S. poultry products. The ban had been in place since 2015 when the U.S. was hit by an outbreak of highly pathogenic avian influenza in America’s poultry flocks. In a statement, the groups say, “Lifting the ban has been a top priority of the U.S. poultry industry for the past four years. “We thank administration officials, congressional leaders and their staffs, all of whom worked tirelessly to reach an agreement with China and ensure the poultry industry has access to this vital market.” This represents a potentially significant opportunity for U.S. chicken and turkey producers. Renewed access to China could results in $1 billion every year for chicken paws alone. Because China has been hit hard by African Swine Fever, it could mean up to another $1 billion worth of potential exports of other chicken products like leg and breast meat. Turkey exports could be worth another $100 million in sales and poultry breeding stock worth at least another $60 million dollars. The groups say, “America’s poultry producers are pleased to once again have a chance to share their high-quality, nutritious products with Chinese consumers in the weeks to come.” ********************************************************************************************** Japan Likely to Vote on U.S. Trade Pact Next Week Media reports in Japan are saying that the parliament is likely to start voting on a trade pact with the U.S. sometime next week. The lower house of the Japanese Diet will take up the pact next Wednesday, while the upper house, called the House of Councilors, will begin considering the deal the next day. A Japan Times report says Japan’s parliament had wanted to hold their votes this week, but complications came about from opposition lawmakers, who demanded that minutes of the meetings between President Donald Trump and Prime Minister Shinzo Abe (AH-bay) be released. Trump wants the deal implemented by January 1, which will likely happen as both houses of parliament are expected to pass the agreement. Trump and Abe announced in September that the countries had reached a deal on the first phase of a trade pace that will have a positive impact on U.S. commodities, including beef, wheat, and pork. An Agri-Pulse report says Japan agreed to cut or eliminate tariffs on $7.2 billion worth of American ag products. The Asian country will also install new quotas that will help to boost import levels of U.S. farm goods even further. ********************************************************************************************** U.S., China Negotiations still Working through Sticky Subjects The U.S. and China are still trying to put the final touches on a limited trade agreement that will involve Chinese purchases of U.S. ag commodities. The question appears to be just how much those purchases will amount to. A CNBC report says the two sides appear to be stuck in a stalemate, even though they announced a tentative agreement a month ago. A Wall Street Journal report says China is hesitant about writing down a specific amount of agricultural purchases in the actual text of the trade agreement. President Donald Trump said last month that China had agreed to purchase up to $50 billion in U.S. farm products. The two sides are still expecting to sign the limited trade agreement later this month. China is still insisting that the two sides roll back their tariffs as part of the agreement, something the U.S. opposes. White House Economic Adviser Larry Kudlow tells CNBC that no agreement will be made on rolling back tariffs until the trade deal is signed. He did say the U.S. and China have progressed in talks on subjects like IP theft, financial services, currency stability, commodities, and agriculture. The administration has slapped tariffs on more than $500 billion in Chinese imports, while China has retaliated with duties on $10 billion worth of American imports. ********************************************************************************************** Emergency Funds Secured to Dredge Mississippi River Wisconsin Representative Ron Kind, along with Minnesota Representatives Angie Craig and Betty McCollum, announced they have secured emergency funding for the U.S. Army Corps of Engineers. The funds will help the Corps to address the impacts of this spring’s devastating floods on the Mississippi River. As a direct result of the flooding, the Mississippi River and many others in the Inland Waterway System have higher sedimentation levels in their riverbeds. The system is responsible for one-sixth of the nation’s intercity cargo and 25 percent of foreign exports. The Army Corps of Engineers needs to increase dredging to overcome those rising sediment levels, allowing barges to navigate successfully. “I’m proud to have worked with my colleagues across the Mississippi River to obtain the funding,” Kind says. “How, the Corps will have the resources they need to make sure the Mississippi remains open for business. Craig points out that farmers, families, and communities depend on the Mississippi River to export goods and to drive economic growth. McCollum says, “This disaster aid will help agricultural businesses fully recover so they can look to the future.” ********************************************************************************************** USDA Offering Flexibility on Crop Insurance Premiums The USDA’s Risk Management Agency says it will continue to defer accrual of interest for 2019 crop year insurance premiums to help farmers hit hard by extreme weather. More specifically, USDA will defer the accrual of interest on 2019 crop year insurance programs to the earlier of the applicable termination date or January 31 of 2020, for all policies with a premium billing date of August 15, 2019. The extension is necessary because harvest has been very delayed, and crop insurance claims typically aren’t settled until after the harvest. That puts an even bigger squeeze on farmers and their cash flow. USDA Undersecretary for Farm Production and Conservation Bill Northey made the announcement during the NAFB convention in Kansas City. “USDA is committed to helping farmers and ranchers impacted by the weather challenges this year, and we hope this deferral will help ease cash flow challenges for producers, many of whom are dealing with serious harvest delays.” The extended deferral builds on other steps USDA has taken to support farmers and ranchers impacted by flooding and other disasters. More than $3 billion in assistance is available through the disaster-relief package passed by Congress and signed by President Trump.
| Rural Advocate News | Friday November 15, 2019 |
Washington Insider: Powell on Interest Rates and Economic Stability Bloomberg is reporting this week that Fed Chair Jerome Powell told the Joint Economic Committee of Congress on Wednesday that interest rates are “probably on hold after three straight reductions,” while signaling that the U.S. central bank could resume cutting if the growth outlook falters. “We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook,” Powell said. However, he emphasized, “noteworthy risks to this outlook remain.” Bloomberg noted that Powell’s comments on Wednesday largely echoed his message on Oct. 30 after the Fed’s third rate cut this year. He cited slowing global growth and trade developments as “ongoing risks.” And, he added that persistently low inflation could lead to an “unwelcome” slide in the public’s longer-run expectations of inflation. Powell said the Federal Open Market Committee cut the policy rate, which is now in a range of 1.5% to 1.75%, to support growth and move inflation back to the 2% target. He said the committee was prepared to respond to a “material reassessment” of its outlook, and the tone of his remarks suggest that downside risks for now outweigh the possibility of economic overheating. Explaining why wages haven’t moved up with the unemployment rate at 3.6%, Powell said it could be a sign that there is still slack in the labor market. “It also may be that the neutral rate of interest is lower than we have been thinking and that therefore our policy is less accommodative than we have been thinking. We are letting the data speak to us.” The comments suggest that the rate cuts this year weren’t entirely about insuring against a global slowdown but also about recalibrating interest costs to an economy where inflation has remained stubbornly low. “We continue to hear from him that they can run the economy with lower rates of unemployment than they thought they could,” said Michael Gapen, chief U.S. economist at Barclays Plc. “That underscores that they expect there to be a high bar to raising rates.” Asked if he meant to signal that policy was on hold through next year, Powell responded “I wouldn’t say that at all” before repeating the line from his opening remarks on policy likely to remain appropriate as long as the economy stays on track. “We do think monetary policy is in a good place, but we’re going to be watching very carefully incoming data,” he said. Yields on 10-year Treasury notes were steady around 1.87% following the testimony while U.S. stocks were higher in New York trading, Bloomberg said. Powell and the Fed have been relentlessly criticized by President Trump, who has blamed the central bank’s policies, rather than the U.S.-China trade war, for a slowdown in the U.S. economy as he increasingly focuses on the 2020 re-election campaign. “We’re paying actually high interest. We should be paying by far the lowest interest,” Trump said Tuesday in New York, complaining that by shunning the negative interest rates deployed by other central banks, the Fed “puts us at a competitive disadvantage.” Powell argued that “politics played no role whatsoever in the Fed’s policy decisions,” which were based on the analysis of the data. He also said that negative rates “would certainly not be appropriate in the current environment.” U.S. economic data have continued to show strength among households and financial conditions have eased with stocks touching record highs on Wall Street this month. Consumer sentiment improved for a third month in November, according to the University of Michigan’s preliminary sentiment index, while employers added 128,000 new jobs in October. Powell said the Fed expected some easing in the pace of job gains after last year’s strong pace. Manufacturing and business investment continue to lag, however. A gauge of U.S. manufacturing signaled the sector contracted for a third straight month with the weakest production level since the last recession. “The outlook is still a positive one. There is no reason this expansion can’t continue,” Powell said. “There is a lot to like about this rare place of the 11th year of an expansion and we’re certainly committed to [support].” So, we will see. Chairman Powell has been eager to deny that any political pressure is reflected in ongoing Fed policy in spite of the president’s criticism — a posture that may become more difficult to defend as the 2020 election approaches. That tension also could involve high stakes for producers and should be watched closely if it intensifies, Washington Insider believes.
| Rural Advocate News | Friday November 15, 2019 |
China Lifts Bird-Flu Linked Import Restrictions On US Poultry China announced it will lift its ban on imports of poultry meat from the U.S., making official the plan that was announced by China’s Commerce Ministry in late October. The measure has now been published by the country’s Customs Administration. The move comes after USDA’s Food Safety and Inspection Service (FSIS) published a rule in the Federal Register that would allow cooked/processed poultry products from birds slaughtered in China to come into the U.S. U.S. poultry has not had access to the Chinese market since the U.S. bird flu outbreak. The market could result in around $1 billion or more in sales of U.S. poultry to China, particularly with demand for protein sources other than pork rising in the wake of African swine fever.
| Rural Advocate News | Friday November 15, 2019 |
China says in-depth talks going on with US The U.S. and China are holding in-depth discussions on Phase One of a trade deal, with the cancellation of tariffs a key issue, according to Commerce Ministry spokesman Gao Feng. "China has emphasized many times that the trade war began with additional tariffs and should end with the cancellation of additional tariffs," said Gao. “If both sides reach a 'Phase One' deal, the degree of tariff cancellation should fully reflect the importance of the 'phase one' deal; and its importance should be appraised by both sides together. Both sides are conducting in-depth discussions on this now.” However, Gao did not appear to have addressed the issue of increased buys of U.S. commodities, a U.S. demand in the negotiations in the Phase One deal and a component of the deal that the Wall Street Journal reported Wednesday was the latest sticking point. China sources indicated the country was reluctant to put specific dollar amounts into the agreement. But it is clear that getting tariffs removed is a key for the Chinese. "Cancelling tariffs is in the interests of producers, consumers, China, the U.S., and the world," Gao stated. President Donald Trump Wednesday indicated the talks between the two sides were going “rapidly” and he did not reprise his threat to raise tariffs on China in the event an agreement is not reached.
| Rural Advocate News | Friday November 15, 2019 |
Friday Watch List Markets USDA's weekly report of grain export sales will get early attention Friday at 7:30 a.m. CST, along with a report on U.S. retail sales. Industrial production is released at 8:15 a.m., followed by a monthly soybean crush estimate from the National Oilseed Processors Association later Friday morning. Weather Friday will be dry in all crop areas, favorable for harvest. Conditions will be notably warmer, especially in the Plains.
| Rural Advocate News | Thursday November 14, 2019 |
Court Tosses Out Lawsuit on Biofuel Waivers A federal court dismissed one of the multiple lawsuits challenging the Environmental Protection Agency’s use of small refinery exemptions. The Washington, D.C., District Court of Appeals said in its ruling that the Advanced Biofuels Association didn’t “identify a final agency action” in the lawsuit it filed back in May of 2018. The biofuels group said the EPA was exceeding its authority when it granted a larger number of waivers under the Renewable Fuels Standard to small oil refineries. A DTN report says even though the court threw out the case, it did note that the industry concerns raised by the group seem valid. “To be sure, the EPA’s briefing and oral argument paint a troubling picture of intentionally shrouded and hidden agency law that could have left those troubled by the agency’s actions without a viable avenue for judicial review.” The EPA has granted a total of 85 waivers since 2016. Those waivers accounted for 4.04 billion gallons of biofuels that weren’t blended into the nation’s fuel supply. The EPA is currently seeking public comment on its proposal to account for gallons waived in the 2020 RFS volumes proposal, which biofuel and agricultural groups are not in favor of. ********************************************************************************************** Trump: Trade War is “Good for Business” President Donald Trump defended his tariff policies during a speech on Tuesday at the Economic Club of New York. Politico says he denied that his erratic trade policies are causing uncertainty for U.S. businesses. Trump doubled down, saying the U.S. would “actually be in much worse shape” over the long term if he wasn’t aggressively challenging China right now. Despite the negative impact on farming, manufacturing, and other economic sectors, Trump has plenty of positive ammunition. Some of the positive economic data include unemployment down to 3.6 percent in October, while consumer confidence surveys remain high. However, Politico points out that economic growth is on a course to slow to about 2.3 percent this year. Growth may even be on track to slow further in 2020. The Port of Los Angeles says Trump’s tariffs are threatening nearly 1.5 million American jobs and over $186 billion in economic activity across the nation. Trump is also claiming that the U.S. and China are closing in on a partial ‘Phase One’ trade agreement, even though the sides are still negotiating over tariff rollbacks after the deal is signed. ********************************************************************************************** Trump Pressuring Pelosi for USMCA Vote While the House impeachment hearings got started on Wednesday, Republicans are trying to make the case that the issue is making it difficult to pass the U.S.-Mexico-Canada Trade Agreement. Speaking Tuesday in New York, President Trump said the existing North American Free Trade Agreement is “disastrous,” even though the agreement made ag trade virtually tariff-free between the three countries. Trump says “nervous Nancy (Pelosi)” and other House Democrats are concentrating on “outrageous hoaxes and delusional witch hunts which are going nowhere.” Trump says there is already enough Democrat support in the House of Representatives to pass USMCA, a sentiment shared by Chuck Grassley, Chair of the Senate Finance Committee. House Ways and Means Committee Chair Richard Neal said Tuesday that his negotiations with U.S. Trade Representative Robert Lighthizer on the USMCA are “progressing.” Neal told Agri-Pulse that the two of them will continue to talk this week. Neal says a recent trip to Canada to speak with Prime Minister Justin Trudeau, couldn’t have gone any better. Trudeau says “they’ll do what they have to do to get this to the finish line.” ********************************************************************************************** First CottonU will Show Off New Cotton Trust Protocol Cotton farmers who want to capitalize on sustainability for their operations should plan to attend the first-ever CottonU on December fifth at the Amarillo Farm and Ranch Show in Texas. It’s a chance to learn about a new pilot program initiated by the National Cotton Council. The NCC is intending to quantify sustainability data through its U.S. Cotton Trust Protocol. Craig Brown is vice president of producer affairs for the National Cotton Council and will keynote the Cotton U lunch. The National Cotton Council says the protocol was developed to help the U.S. cotton production sector to reduce its environmental footprint via specific sustainability goals targeted for 2025. The goals include a 13 percent increase in productivity or land used per pound of fiber, as well as an 18 percent increase in irrigation efficiency. Other targets include a 39 percent reduction in greenhouse gas emissions, a 15 percent reduction in energy expenditures, as well as a 50 percent reduction in soil loss. Before these goals can be met, farmers must enroll and complete self-assessments to provide a baseline of data for the industry. ********************************************************************************************** Farmers Using Less Water to Irrigate The 2018 Irrigation and Water Management Survey results are out this week, showing that over 231,400 farms irrigated 55.9 million acres. That included 83.4 million acre-feet of water in the United States. By way of comparison, the 2013 survey showed there were just over 229,230 farms that irrigated 55.3 million acres, which included 88.5 million acre-feet of water. The results show that even though the number of farms irrigating, and the amount of land increased slightly over those five years, the total amount of water used to irrigate land actually declined. The 83.4 million acre-feet of water used to irrigate land in 2018 represent a 5.8 percent drop from 2013. The average acre-feet applied to land was 1.5, which is lower than the 1.6 in 2013. An acre-foot is the amount of water required to cover one acre to a depth of one foot. The largest portion of irrigated farmland acres in the U.S. was dedicated to cropland, including grains and oilseeds, vegetables, nurseries, greenhouses, as well as hay crops. The survey also shows that more acres are irrigated with sprinkler systems than with gravity irrigation. ********************************************************************************************** NASCAR Drivers Surpass 15 Million Miles on E15 At the Bluegrass Vacations 500 race, NASCAR reached a significant milestone, announcing that their drivers surpassed 15 million miles on the E15 ethanol blend. NASCAR adopted E15 in 2011 across its three national racing series to reduce emissions in their sport, all while maintaining the high-performance standard needed by drivers during every race. Growth Energy, the nation’s largest association representing ethanol producers and supporters, launched its American Ethanol Program in 2011, in conjunction with NASCAR’s decision to adopt E15. “American Ethanol’s partnership with NASCAR has been a fantastic platform to promote the benefits of cleaner-burning ethanol ever since the sport adopted it,” says Growth Energy CEO Emily Skor. “NASCAR fans have now seen the fuel perform flawlessly for 15 million miles under the most demanding circumstances imaginable.” She says consumers have put E15 to the test for more than 11 billion miles of commutes, road trips, and picking kids up from school. “Whether on or off the track, day after day, mile after mile, E15 continues to be the smart choice for divers who care about their engines, reducing emissions, and saving money at the pump,” Skor adds.
| Rural Advocate News | Thursday November 14, 2019 |
Washington Insider: Challenging the WTO Bloomberg is reporting this week that the Trump administration is “ratcheting up its pressure on the World Trade Organization (WTO) by raising the possibility of blocking the approval of the institution’s biennial budget.” Such a move could effectively halt the WTO’s work starting next year, the report said. During a regular meeting of the WTO budget committee in Geneva on Tuesday, a U.S. delegate expressed concern about the organization’s payments to the appellate body, which the U.S. administration argues has overstepped its mandate. The U.S. also expressed concerns about funding being diverted to a proxy dispute settlement system recently championed by the European Union, Canada and Norway, Bloomberg said. Because WTO decisions must be made by consensus among all 164 members, the U.S. blocking maneuver would threaten the effective functioning of the organization responsible for overseeing the rules of global commerce. The members have until Dec. 31 to adopt a budget for 2020 and 2021 and they will take up the issue again next Tuesday. If the U.S. unilaterally kills off funding, it could imperil the future of the WTO’s work and force countries to fundamentally rethink their reliance on it to negotiate trade deals and settle the surging number of disputes. The move marks an escalation in the administration’s approach toward the body, which it is threatening to abandon entirely. The administration also blames the WTO partly for allowing China to grow into a rival economic power over the past two decades by flaunting the rules. The U.S. contributes more money than any other single country to the WTO’s annual budget – 22.7 million Swiss francs in 2019, Bloomberg says. The total budget for 2019 was 197.2 million francs, the same as a year earlier. Trump, U.S. Trade Representative Robert Lighthizer and other U.S. critics argue that the WTO dispute settlement system threatens America’s sovereign rights and has strayed from its mandate. The U.S. Trade Representative plans to deliver a statement about the “systemic concerns regarding the compensation of appellate body members” at the Nov. 22 meeting, according to a document published Tuesday by the WTO. Over the past two years the U.S. administration has blocked all new appointments to the appellate body, which has the final say in upholding, modifying, or reversing WTO rulings that often affect some of the world’s biggest companies and billions of dollars in international commerce. The seven-member appellate body is now operating with just three active members, the minimum required to sign off on WTO appellate rulings. The terms for two of those members are set to expire on Dec. 10. Thomas Graham, a U.S. lawyer who is one of the appellate body’s last remaining members, recently said he may leave at the end of his term on Dec. 10, rather than stay on to adjudicate the cases he has already been assigned – as has been done in the past. One of the Trump administration’s key complaints is that former appellate body members have continued to deliberate appeal cases they were assigned prior to the expiration of their terms. Graham’s departure would throw all pending and future appeals into legal limbo because there wouldn’t be enough appellate members to resolve disputes. About a dozen appeal cases are pending, including a dispute over EU restrictions on Russian natural-gas imports and a pair of U.S., Canadian disputes over paper and softwood lumber. Canada, the EU and Norway have already agreed to set up an alternate channel for settling trade disputes in order to sidestep the looming deadlock. The EU plan would create an alternate arbitration process that would continue the “essential principles and features” of the appellate body with a panel of former appellate body members. It is envisaged as a stopgap measure to be used until the U.S. resolves the impasse. Outgoing EU Trade Commissioner Cecilia Malmstrom argues that the step is necessary to prevent the international trade system from devolving into the “rule of the jungle.” “If you have no rules, everyone can do what they want and that would be really, really bad, not least for the smaller and developing countries,” she said in July. Observers note that it is not clear what the administration’s plan is for settling future trade disputes if the WTO body is abandoned. The well-known U.S. hostility toward the dispute settlement body has not become much of a political cause the way its “get tough” tariffs have – in part because the issue is far more complex than its use of “get tough” tariffs have been. Still, the administration’s strategies in the current U.S., China negotiations as well as those concerning many other current and potential markets are being examined much more widely these days, and criticism can be expected to grow if the anticipated “first phase” deal with China stumbles. This debate with all its complexities is one producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Thursday November 14, 2019 |
Grassley Calls on Biofuel Backers, Farmers To File Comments On EPA’s Supplemental RFS Plan Farmers and those in the biofuel industry need to let EPA know their support for the Renewable Fuel Standard via filing comments on EPA’s supplemental plan for the RFS, Sen. Chuck Grassley, R-Iowa, urged Tuesday. EPA is accepting public comments on their plan through November 29. Grassley said he and other Midwest senators will soon send a letter to President Donald Trump outlining the importance of the RFS to the region. “He has long been a supporter of biofuels and made a commitment to Iowa and the surrounding biofuel-producing states,” Grassley said, according to Radio Iowa. “The EPA should not undercut President Trump’s support of the RFS.”
| Rural Advocate News | Thursday November 14, 2019 |
Trump Continues His Mixed Message On US-China Trade President Donald Trump’s wide-ranging speech to the Economic Club of New York included what is Trump’s consistent theme on U.S.-China trade deal prospects – mixed messages. Trump declared that the U.S. is “deciding whether or not we want to make a deal. We are close.” He also stated that a “significant phase one trade deal with China could happen. It could happen soon. But we will only accept a deal if it is good for the United States and our workers and our great companies, because we have been hit very hard.” But then Trump proceeded to remark, “I tell it to everybody: If we do not make a deal, we are going to substantially raise those tariffs. They are going to be raised very substantially.” Those mixed messages were cited as pressure points in overnight equity market action Tuesday night and early Wednesday morning. Meanwhile, China’s Foreign Ministry said that the two sides have agreed to remove tariffs in stages once an interim deal is signed, and both sides are working on finalizing the details of the agreement, according to the South China Morning Post. The report said once the deal is finalized, then the two sides would decide how many of the tariffs would be removed.
| Rural Advocate News | Thursday November 14, 2019 |
Thursday Watch List Markets Weekly jobless claims and Producer price index will both be out at 7:30 a.m. CST on Thursday. We will also be watching for any news regarding the U.S.-China trade deal progress on phase one, updated weather forecasts for both U.S. and South America, and for confirmation of any new China soybean purchases that have been rumored. Weather All central U.S. crop areas will be dry Thursday, with improved harvest conditions. Precipitation will be confined to light rain in southeast Texas.
| Rural Advocate News | Wednesday November 13, 2019 |
Farmers Turning to Riskier Loans to Stay in Business Weather challenges, trade tensions, and long-term financial struggles continue to make life difficult in the U.S. agricultural sector. The Wall Street Journal says those headwinds are forcing an increasing number of farmers and ranchers to take on high-interest loans from lenders outside of the ag sector, just to stay in business. The more traditional farm banks are offering less money and placing tighter restrictions on their loans. That’s forcing cash-strapped farmers to go to other lending sources for the capital they need to stay afloat. Financial services providers that are less regulated can offer significant help to producers. However, those loans can be treacherous to farmers that fall behind, with interest rates twice those charged by the more typical ag lenders. Heath Jobe is a farmer from Arkansas who recently lost a crop to dry weather. His loan payments carried a nine percent interest rate and piled up quickly, while his request for a new loan was rejected. Producers are increasingly falling behind on their loans and it’s putting a squeeze on ag lenders too. Farmers face almost $416 billion in debt this year, which is the highest number since the 1980s farm crisis. ********************************************************************************************** Opportunity Ahead for More U.S. Wheat Exports to Brazil Brazil is set to open a tariff-rate quota on wheat imports, a potential opportunity for U.S. wheat producers. The quota will allow 750,000 metric tons of wheat to enter Brazil duty-free from outside of South America. The agreement comes 24 years after Brazil joined the World Trade Organization in 1995. The Fence Post Dot Com says both U.S. Wheat Associates and officials in the U.S. Government have worked for years to open the tariff rate quota and establish a more accessible market in Brazil for U.S. hard red winter wheat and soft red winter wheat. USW President Steve Peterson says, “Brazil is a quality-focused wheat market and its flour millers recognize that U.S. wheat can help them to better meet their customers’ needs. “ Opening the TRQ gives their millers more consistent access to our wheat classes while still having an option to source from other countries if they choose to.” He says that’s how markets are supposed to work. The Brazilian government is moving ahead on a formal process and date for implementing the TRQ. U.S. Wheat Associates Chair Doug Goyings says, “This is a perfect example of how fulfilling commitments can work for all trading partners.” ********************************************************************************************** Ag Lender Survey Shows Lower Profitability and Higher Concerns The American Bankers Association teamed up with Farmer Mac for their Fall 2019 Ag Lender Survey. The biggest takeaway from the report is that the agricultural economy and farm income remain under stress, with little if any signs of improvement ahead in 2020. Over 82 percent of lenders in the survey said farm profits were being squeezed this year, with every region in the survey reporting profitability declines in their respective areas. The top concerns for producers in the survey included income, liquidity, and leverage, but trade, tariffs, and weather moved up on the list. The top concerns for lenders included credit quality, competition for loans, as well as weaker loan demand. Lender sentiment remained cautious between August of 2018 and August of 2019. A similar percentage of lenders reported farm profitability declines, increasing farm leverage, and increasing loan default rates. Dairy, grains, and cattle were the sectors that gave lenders the most concern, while they were less concerned about the swine, poultry, and vegetable sectors. Survey respondents generally expect higher loan delinquency rates going into 2020 for both production and real estate. In spite of quality concerns over credit, lenders remain positive about approvals. ********************************************************************************************** America’s Largest Milk Producer Files for Bankruptcy Dean Foods, a 94-year-old milk producer, is filing for bankruptcy. The largest milk producer in the country is struggling as Americans are no longer drinking as much milk from cows. This year has been especially difficult as company sales dropped seven percent in the first half of this year, with profits falling 14 percent. A CNN Dot Com article says Dean Foods stock has lost 80 percent of its value. The company manufactures some of the more recognizable milk and dairy products in the country, including Land O’ Lakes and Organic Valley. The company blames its struggles on declining consumption in white milk. Company debt has made it difficult for Dean Foods to fund all of its workers pensions. In a statement, the company says it’s working with the Dairy Farmers of America cooperative on a potential deal in which the cooperative would buy almost all of the company. Sales of cow’s milk has declined for the past four years. Over the past 52 weeks, white milk sales totaled around $12 billion dollars. Another problem Dean Foods faced is Walmart. Once one of Dean Food’s biggest customers, Walmart dropped them last year after building its own dairy plant. ********************************************************************************************** Senate Democrats Report Says Trump Trade Policies Pick Winners and Losers Senate Ag Committee Ranking Member Debbie Stabenow and Senate Minority Leader Chuck Schumer led a group of fellow Democrats in releasing a report on the Trump Administration’s trade policies. The report says the administration’s agricultural trade aid program “is picking winners and losers in their attempt to aid farmers affected by President Trump’s turbulent trade agenda.” The Democrats say the data shows that in the wake of trade uncertainty created by the president’s actions, the $25 billion in mitigation payments to help farmers has been distributed “unevenly” across the country, benefiting some regions of the country more than others. The senators wrote a letter to Ag Secretary Sonny Perdue, saying “instead of taking a careful approach as Congress did in the recent bipartisan 2018 Farm Bill, the USDA has replaced markets with short-term inequitable payouts that lack transparency.” The report goes on to say that “the administration’s Market Facilitation Program has treated farmers “unfairly” by sending 95 percent of the top payment rates to farmers in the south, who they say have been hurt less by the trade disputes than farmers in other regions of the country. They also say the administration’s policies have helped farms owned by billionaires and foreign-owned companies. As an example, the Democrats point out that $90 million in purchase contracts went to a Brazilian company. ********************************************************************************************** Justice Department Asks for Stay in Sugar Decision Late last week, the U.S. Justice Department filed a motion requesting a 90-day stay in the Court of International Trade’s ruling that an amended Mexico-U.S. trade agreement wasn’t valid. The Hagstrom Report says an agreement on Mexican sugar imports to the U.S. was amended in 2017. However, the court said that the amended agreement wasn’t valid because the Commerce Department didn’t release all the notes of meetings held during the negotiations. The American Sugar Alliance says U.S. sugar producers, as well as Mexico’s sugar industry and government officials, support the U.S. request for a stay. Phillip Hayes, an ASA spokesman, says, “This 90-day stay is necessary to ensure that everyone has enough time to file comments with the Department of Commerce on the suspension agreements, as well as gives the Commerce Department time to follow proper procedure during the process.” Hayes points out that it’s important to remember the court didn’t comment on the merits of the amendments and was instead based purely on record-keeping procedures by the Department of Commerce. “Mexico’s government and sugar industry have both asked the U.S. government to reinstate the suspension agreements without change, something U.S. producers support,” Hayes adds. The Commerce Department has now published the suspension agreements without change and is looking for comments from interested parties.
| Rural Advocate News | Wednesday November 13, 2019 |
Washington Insider: Unhappiness Over Trade Bailout Program US agriculture is so large and diverse that it is difficult if not impossible to meet industry-wide needs with a single program, even if it is basically a cash payment. For example, Senate Democrats are “attacking President Trump’s $28 billion farm trade aid program on the grounds that it favors southern farmers at the expense of their counterparts in the Midwest and Northern Plains.” Also there are charges that it favors growers of cotton over soybeans and large producers over smaller ones. “The administration is using a flawed formula that helps big, wealthy farms and billion-dollar foreign-owned companies, while small farms get left behind,” Senate Minority Leader Chuck Schumer, D-N.Y., said. He wants USDA to stop “picking winners and losers, and ensure all of America’s farmers get the help they need--not just a lucky few.” Democrats on the Senate Agriculture Committee, led by Debbie Stabenow, D-Mich., issued a report Tuesday accusing the administration of “extreme disparities” in the way it calculated the trade aid payments. The report said five heavily Republican southern states – Georgia, Mississippi, Alabama, Tennessee and Arkansas – received the highest payment rates per acre under this year’s market facilitation payments. Ninety-five percent of counties that have a payment rate of at least $100 an acre are in the South. This is in spite of the fact that farmers in the Midwest and Northern Plains have been hurt most by the trade war, the Democrats said. The payments also “overcompensate” cotton growers, the Democrats claim, citing US Department of Agriculture data showing a 3.9% increase in the price of upland cotton for the 2018 crop compared with the prior year. Democrats also criticized the program for making commodity purchases from large, foreign-owned agricultural conglomerates, including $90 million paid to a subsidiary of Brazilian-owned JBS SA. More than half of the administration’s first-year market facilitation payments went to just 10% of the recipients in the program, according to an analysis by the Environmental Working Group of records obtained through the Freedom of Information Act. Democrats complained the Trump administration nonetheless doubled payment caps for this year’s trade assistance program. Last year’s trade aid made payments based on crop type, but this year the assistance rates are on a “per-county rate based on the blend of crops grown in the area,” with payments ranging from $15 to $150 an acre. The administration hasn’t released details on how it calculated financial damage from the trade war for the aid program. Rural voters are a key constituency for President Trump as he heads into the 2020 election and government aid has become an increasingly important source of income for America’s farmers amid the financial stresses of the trade war with China, a commodity glut and wild weather, Bloomberg said. A recent American Farm Bureau Federation study found that almost 40% of projected farm net returns this year will come from trade aid, disaster assistance, federal subsidies and insurance payments, Bloomberg said. The AFBF said the supports totaled some $33billion of a projected $88 billion in net income. Farm bankruptcies are rising nonetheless, this year hitting the highest levels since 2011, Bloomberg said. As criticism of the payments and the formulas used to define them grows, the administration likely faces a daunting task in its efforts to convince producers not only that the “trade aid” program is effective and fair, but also that benefits from the “get tough, tariff-based policies” will be worth their cost. This debate should be watched closely by producers as it intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday November 13, 2019 |
USDA Publishes Interim Rule On CSP USDA has published an interim rule in the Federal Register putting changes in place for the Conservation Stewardship Program (CSP) that were part of the 2018 Farm Bill. Funding for the program is set at $725 million in Fiscal Year (FY) 2020, rising to $1 billion in FY 2023. The interim rule reflects public feedback gathered via a listening session in February 2019 with the agency also receiving 183 written comments from various interests. The rule is effective today, with USDA taking comments by January 13, 2020. The notice also contains an Environmental Analysis and Finding of No Significant Impact, with comments on that portion of the rule due on or before December 12, 2019.
| Rural Advocate News | Wednesday November 13, 2019 |
Ag Bankers Concerned About Credit Quality In Midst Of Farm Downturn Even as 57 percent of farmer borrowers were profitable in 2019, up six percentage points from 2018, some 82.5% of ag lenders reported declines in farm profitability from all reporting regions in results of an ag lenders survey conducted by the American Bankers Association (ABA) and Farmer Mac. Lenders listed credit quality, competition for loans and weaker loan demand as their chief concern, the report said, while producers listed liquidity, income and leverage as their top concerns. However, the report noted that “trade, tariffs and weather edged up on the list.” Only 9.1% of respondents said that they expected increased profitability for farmers the next 12 months while 55.1% expected profitability to decline. As for specific ag sectors, the report said that dairy, grains and cattle were sectors of the most concern. However, interest in financing for hemp and alternative energy were big of note, with 49.9% of lenders say farmers were asking about financing for hemp production and 36.8% inquired about alternative energy financing. Some 49.6% of lenders expect land values to decline in 2020, with lenders reporting an average of 37.8% of land in their markets was above market value. “Lenders also expect compression in cash rents, but few lenders reported above-market value rents compared to 2018,” the report said. Nearly half of lenders said there was an increase in farmer retirements in 2019 and nearly two-thirds said they look for that pace to quicken in the next 12 months.
| Rural Advocate News | Wednesday November 13, 2019 |
Wednesday Watch List Markets Weather forecasts for North and South America remain important for Wednesday's grain markets and any trade news with China will be noticed. For financial traders, the U.S. Labor Department releases the consumer price index at 7:30 a.m. CST. A report on the U.S. federal budget follows at 1 p.m. CST. Weather Snow and mixed precipitation will cover the Northern Plains and northern Midwest Wednesday, further disrupting harvest. Other crop areas will be dry. Temperatures will be warmer, notably in the southwestern Plains.
| Rural Advocate News | Tuesday November 12, 2019 |
Washington Insider: Mobilizing to Meet New, Dangerous Food Safety Threats The Hill is highlighting continuing focus on what it sees as new and dangerous food safety threats, citing a paper by Thomas Grumbly, president of Supporters of The Agricultural Research Foundation, who has held several senior policy roles in USDA, OMB and FDA. Grumbly argues there are severe dangers from neglecting agricultural research and thinks "the one bright spot in the U.S. ag sector" is now increasingly at risk -- and "that the entire sector is poised to fall off a cliff deeper than anyone can imagine." He is warning about what he calls a lethal trifecta of "adverse weather, weak commodity prices and trade disruptions." His outlook was initially prepared for the Federal Reserve Bank of Cleveland. Grumbly notes farm bankruptcies are up 24% over last year and pork production has been doing OK, for now. USDA is expecting a 10.8% increase in hog prices in 2019 compared to 2018. In the first nine months of 2018, U.S. pork exports to China exceeded 142,200 metric tons (mt) despite the trade war. At the same time, hog farmers across the U.S. "are holding their breath" because this outlook depends on African swine fever (ASF) not arriving on U.S. soil. Despite the name, ASF is an international threat, appearing in more than 50 countries. In China, which normally produces more pork than every other country combined, an estimated 300 million pigs have been killed by either the incurable viral infection or by mass culling on an inconceivable scale. In the U.S., which produced approximately 130 million hogs for meat last year, USDA says it is working with state officials and industry representatives to prepare for a potential outbreak, running drills to isolate farms with infections and identify how the virus could enter production systems. But developing effective contact tracing responses doesn't even close the barn door after all the animals leave, Grumbly thinks. It just helps us figure out which way they went. The real imperative, since a decade ago when an ASF viral outbreak in Eastern Europe spiraled out of control, has been to find a way to prevent transmission or cure the infection before it spreads. Right now, we have no answers except to slaughter hundreds of millions of animals. And finding the funding for such critical research needs has gotten harder and harder every year. With world-class laboratories, the U.S. once led the world in agricultural innovation. But now we are practically standing in place, despite all the threats from viral diseases like ASF to extreme weather conditions to food poisoning outbreaks. The last time an outbreak of this magnitude hit U.S. farms was the avian influenza outbreak of 2015, in which more than 50 million chickens and turkeys were culled to stop the spread of the disease. This year Chinese farmers have had to kill five times that number of livestock, Grumbly says. In the earlier outbreak, the tens of millions of bird corpses became a public health threat when they could not be buried fast enough so U.S. farmers shudder to think of how to dispose of much larger hog corpses in that scale of slaughter if it were necessary in the U.S. Despite the paltry funding, researchers still have made strides in determining how viruses like ASF are propagated. For example, a team of scientists at Kansas State University determined threshold levels of contamination for the virus to be transmitted through animal feed. Previous research at the university, which determined how to remove another contagious virus from pig feed, tapped grants from two other sources. Eleven years ago, in an effort to revamp how USDA provides research grants, Congress established the Agriculture and Food Research Initiative. The program provides funding through a competitive process in which proposals are rigorously peer-reviewed. AFRI research was "authorized" with a $700 million budget in the 2008, 2014 and 2018 farm bills. But this level has never been reached amid the horse trading that takes place during the annual federal budget negotiations. Too many other priorities pushed this important effort aside. As a result, the program typically provides funding to less than a quarter of the science that the program's expert panels deem necessary. And researchers tackling critically important problems first have to tackle the question of how to get funded. Science can solve many of our problems but often falls short without steady funding. Producing food has become increasingly difficult as farmers struggle to solve increasingly difficult challenges before new crises arise to challenge their operations. Agriculture cannot evolve without new breakthroughs -- an increasing challenge, Grumbly said. Industry experts are increasingly mobilizing to meet this new threat, which will be intensified if the U.S. and China rebuild closer trade relationships. Clearly, dealing with this threat will increasingly challenge the U.S. scientific community, and should be watched closely by producers as the mobilization process proceeds, Washington Insider believes.
| Rural Advocate News | Tuesday November 12, 2019 |
Alabama, Florida, Georgia Get Disaster Aid Block Grants Alabama, Florida and Georgia will receive a combined $800 million in block grants from USDA to help their agriculture industries recover from 2018 hurricanes, USDA announced Friday. Florida will get $380.7 million, Georgia $347 million and Alabama $24.9 million. Florida officials said the funds will compensate timber producers for lost value of their crop damaged by Hurricane Michael, helping them clear downed trees and replant. Block grant funding will also help producers repair and replace irrigation infrastructure damaged by Hurricane Michael. Officials say an estimated 550 million trees, weighing 72 million tons, were damaged or destroyed by the massive Category 5 hurricane. The funding in Georgia is expected to reach pecan growers, timberland owners and poultry and cattle farmers who suffered heavy damage but had some operations that weren't covered by an earlier federal disaster aid program. USDA is aiming to wrap everything up and disburse the funds by Thanksgiving. But that is not likely the timeframe for when the money will reach farmers.
| Rural Advocate News | Tuesday November 12, 2019 |
Trump Injects Uncertainty Into US-China Trade With Tariff Comments President Donald Trump Friday said he has not agreed to the rollbacks of U.S. tariffs sought by China, sparking fresh doubts about when the world's two largest economies may end a 16-month trade war that has slowed global growth. Trump also remarked he has not yet approved the phase one deal negotiators are working on. "I have not agreed to anything," Trump said. "China would like to get somewhat of a rollback, [but] not a complete rollback because they know I will not do it." The Financial Times reported last week the White House was considering rolling back levies on $112 billion of Chinese goods. Meanwhile, there continue to be different views expressed by White House officials on the topic. National Economic Council Director Larry Kudlow told Bloomberg that any phase one deal would include "tariff agreements and concessions." However, Peter Navarro, a White House trade adviser, slammed the media for reporting that the tariff removal was in the cards. Navarro said the media was relying on sources "without direct knowledge of the negotiations" -- even though Kudlow publicly mentioned the possibility of concessions. Navarro also reprised his view that some reporters were being duped by "propagandists within the Chinese government." He also said China was trying to "negotiate in public" and said if the U.S. gave up any existing tariffs, Washington would not have leverage ahead of further phases of the talks.
| Rural Advocate News | Tuesday November 12, 2019 |
Trump says No Agreement with China on Easing Tariffs Yet Late last week, the Chinese government stated that the U.S and China had reached an agreement to begin rolling back tariffs after a phase one trade deal is signed. That statement led to some optimism and a jump upward in financial markets. Politico says it was just 24 hours after that when President Donald Trump poured “cold water all over the positive vibes.” The president said during a press conference on Friday that there’s no such understanding between the two countries to scale back duties on each other’s goods. “I haven’t agreed to anything,” Trump said on the White House lawn. “China wants to get somewhat of a rollback in tariffs, not a complete rollback, because they know I won’t do it.” White House Trade Adviser Peter Navarro sent an email on Friday complaining about the media coverage of the apparent deal on tariffs, saying too many journalists are “getting the trade stories on China wrong.” Politico points out that they asked the White House and the U.S. Trade Representative’s Office to confirm the Chinese claims on an agreement to cut back on tariffs. Both refused to comment on the record and didn’t make any attempt to contradict the Chinese statement. ********************************************************************************************** USDA Set to Allow Chinese Poultry Imports as a Sign of Progress The U.S. Department of Agriculture is taking steps to allow poultry imports from China. Farm Progress Dot Com says it’s a sign of ongoing progress in the talks between Washington and Beijing that will hopefully lead to a resolution in their trade dispute. The new regulation covers birds as well as poultry parts and products slaughtered in certified Chinese facilities. A compromise on poultry came out of advanced discussions between the two nations as they gradually work toward a “Phase One” partial trade deal. China said last month that it was prepared to lift a ban on U.S poultry imports that had been in place since 2015. A report last Thursday said that China’s General Administration of Customs and Ministry of Agriculture were looking into the removal of curbs on American supplies. China is currently allowed to send poultry products into the U.S. that are slaughtered in America or certain other countries. However, the new regulation would allow China to send processed poultry products made from birds slaughtered in the Asian country. If Beijing ultimately lifts its ban on U.S. poultry imports, that would be a major win for U.S. producers and processors. China banned U.S. poultry imports in 2015 after an outbreak of highly pathogenic avian influenza in the U.S. ********************************************************************************************** USDA Announces Aid Package for Southern Farmers Hurt by Hurricanes Ag Secretary Sonny Perdue says his agency is making $800 million available to agricultural producers in Alabama, Florida, and Georgia, who were affected by Hurricanes Michael and Florence. These state block grants are part of a larger $3 billion package to aid producers in recovering from natural disasters in 2018 and 2019. The broader package includes the Wildfire and Hurricane Indemnity Program, as well as programs for loss of milk and stored commodities. “Natural disasters hit producers with some hefty blows in the past couple of years,” Perdue says. “This relief complements USDA’s tool chest of disaster assistance programs and crop insurance.” He says the additional aid helps producers who’ve suffered losses beyond what the regular USDA programs can cover. USDA is working out the final details of the grants with the Florida governor’s office and the state departments of agriculture in Alabama and Georgia. The grants are designed to cover all of the qualifying losses not covered by other USDA disaster assistance programs. Grant funding covers losses of timber, cattle, poultry, as well as necessary expenses related to the loss of horticulture crops and present-value losses associated with pecan production. ********************************************************************************************** Brazil Taking Cotton Exports Away from U.S. Producers While soybeans have gotten a lot of attention during the U.S. trade war with China, U.S. cotton is one of the lesser-known victims of the trade dispute. Just 14 million acres of the crop were planted this year across states like Texas, Georgia, and Mississippi. That’s compared with 76.5 million acres of soybeans and almost 90 million corn acres. The U.S. is the world’s top exporter of cotton and over 75 percent of the crop is sent overseas. The U.S. cotton industry depends heavily on Chinese purchases. Bloomberg says even if the U.S. and China were to strike a trade deal, the global demand outlook isn’t solid and industry experts say harvest doesn’t look encouraging, due in large part to a hot and dry summer in many key cotton regions. The global customers that are out there are currently looking to Brazil for cotton. The lagging Brazil economy is making its supply of cotton more affordable for other countries when compared to U.S. cotton. The forecast supply from this season’s crop will likely boost domestic supplies to their highest point since 2009. This will bring down cotton futures, which dropped over eight percent last year and are down another 10 percent this year. ********************************************************************************************** Rabobank: China’s Hog Herd Won’t Bounce Back for Five Years Rabobank says China’s pig herd, once the largest in the world, will take more than five years to recover from the African Swine Fever outbreak. Even then, Rabobank International says their meat consumption won’t be the same as it was before the disease outbreak. The world’s biggest pork market won’t stabilize until 2025 and meat imports won’t make up for the shortfall. China’s once giant hog herd is more than half of what it was, down to less than 200 million since the first case of ASF was made public in August of 2018. A Rabobank analyst notes that China is rapidly trying to increase its domestic production, while importing more pork and other proteins like beef and chicken, in hopes of satisfying consumer demand. The crisis will change the way China consumes protein. Rabobank says pork will remain the meat of choice in China, but its overall share of meat consumption will fall from 63 percent to 53 percent. Poultry’s share of Chinese meat consumption will increase by 30 percent by 2025. Restocking and importing will take place through 2021 before hog output increases through 2025. However, Rabobank says even then, the total herd is unlikely to return to its peak size in 2018. ********************************************************************************************** New Tractors Presented to Farmer Veteran Coalition Members In partnership with the Farmer Veteran Coalition, Kubota presented five farmer veterans with new tractors as a part of its “Geared to Give” program. In observance of Veterans’ Day, each farmer received the keys to their new tractor during a ceremony in their respective hometowns. Hundreds of applications came in for the giveaway program, with Kubota selecting five winners in each of their operating divisions. Winners included three Army veterans, an Air Force Veteran, and a U.S. Marine. Alex Woods, Kubota’s Vice President of Sales, says, “The program empowers farmer veterans to achieve their dreams. We’re very happy to have selected the five veterans to receive their awards.” Michael O’Gorman, Executive Director of the Farmer Veteran Coalition, says, “One of the great joys of doing this work is being able to make a positive impact on our farmer veterans by providing them with the tools to succeed on their operations. Having horsepower on the farm is the ultimate gift for a farmer.” Farmer veterans can apply every year to the FVC Fellowship Fund to be considered for donated Kubota equipment through the “Geared to Give” program.
| Rural Advocate News | Tuesday November 12, 2019 |
Tuesday Watch List Markets Tuesday's reports start with weekly export inspections at 10 a.m. CST and end with USDA's Crop Progress report at 3 p.m. Harvest progress remains slower than usual in 2019, but drier weather has helped lately. The weather forecast continues to be watched as does any hints of trade progress with China. Weather Most primary crop areas will be dry and unseasonably cold Tuesday. Conditions favor harvest.
| Rural Advocate News | Monday November 11, 2019 |
Monday Watch List Markets USDA's usual Monday reports will be released Tuesday, due to Veterans Day. That leaves an open docket with U.S. government offices and Federal Reserve banks closed. U.S. futures markets will be open as usual and traders will still be interested in weather forecasts and any trade news pertaining to China. Weather Snow and mixed precipitation are in store for the central Plains and most of the Midwest Monday, causing harvest disruption. The Delta and southeastern Plains will have rain for winter wheat, along with row crop and cotton harvest delays. Conditions will be very cold for the season in northern and central areas, adding to slow progress.
| Rural Advocate News | Monday November 11, 2019 |
Perdue Hoping Trade Aid Payments Unnecessary in 2020 Ag Secretary Sonny Perdue is hoping that a third round of trade aid payments to farmers will be unnecessary in 2020 because of a new trade deal with China. The Hagstrom Report says Perdue spoke with reporters last week shortly after returning from a “successful” trade mission to Mexico. Farmers “would rather have trade than aid,” Perdue says. At the same time, he did say the second round of 2019 trade aid is approved and will be heading to farmers soon. “We have just gotten authorization on the second tranche,” he said. “I expect payments to be out to farmers by late November or early December.” The U.S.-Mexico-Canada Trade Agreement was one of the big topics of conversation on the trip to Mexico. Perdue says Mexican officials are hoping Congress will sign off on the agreement as soon as possible. “They’ve done their work, as you know, and they’re anxious for us to complete our task as well,” Perdue says. Immigration was another topic of conversation with Mexican officials. Perdue is hopeful that the Mexican government will begin a program to “pre-certify” workers southeast Mexico for the H-2A Program. Southeast Mexico is one of the most poverty-stricken areas of the country. ********************************************************************************************** House Ag Chair Undecided About Another Congressional Run Speculation seems to be swirling about whether or not House Ag Committee Chair Collin Peterson will be running for office again. Politico says the Democrat from Minnesota is thinking “long and hard” about whether or not he wants to help put together another farm bill. Peterson is confident he would win another term if he decides to run. However, he’s trying to decide whether he wants to stick it out for another cycle of putting together another farm bill. The current farm bill expires in 2023, but discussions begin several years ahead of that. “It’s getting harder every time to do a farm bill,” Peterson says. “It’s a big commitment. So that’s what my main thing is, do I want to do that? If I do, then I’d feel like I have a responsibility to see it through.” The ag chair wouldn’t give a yes or no answer to the question of whether he’ll run again. Peterson says he’ll make a public announcement in either January or February of next year, as he’s done in the past. Republicans point out that Peterson recently sold his condo in D.C., saying that’s a sign he’s not running again. Peterson said he did that to gain additional capital for his Minnesota farm. ********************************************************************************************** Peterson: USMCA Vote Possible this Week or Next The House of Representatives could vote on the U.S.-Mexico-Canada trade agreement as early as this week or the next. Farm Journal’s Ag Web Dot Com says Peterson appeared on the “D.C. Signal to Noise Podcast” recently and said Speaker Nancy Pelosi wants to get USMCA approval “on the fast track.” Peterson says USMCA Working Group Chair Richard Neal of Massachusetts told him that Neal will try to move the legislation forward either this week or the next. “He’s pushing hard,” Peterson says. “It’s going to get done. The question is whether it will be done during the next two weeks or sometime in December?” While on a caucus conference call last week, Peterson says Pelosi talked about the push to pass USMCA. “She wouldn’t be doing that if she didn’t want this to get done,” Peterson explained. “So, this is going to get done.” The USMCA Working Group has been meeting regularly with U.S. Trade Representative Robert Lighthizer to negotiate the changes needed to get votes from both sides of the political fence. The House Ag Chair says he anticipates that work will clear the way for rapid approval from all three countries. ********************************************************************************************** China’s Demand for U.S. Pork Continuing to Grow Despite Tariffs The USDA recently raised its pork export forecast for both 2019 and 2020. The predicted rise is due in large part to the significant growth in Chinese demand for more U.S. pork. China’s growing demand for pork imports is a direct result of the African Swine Fever outbreak that spread throughout the country in 2018 and continued into this year. As of September, China’s pork inventory was down 41 percent from the previous year. Many farmers slaughtered their animals to prevent herds from becoming infected. By October, Chinese hog and pork prices had doubled compared to a year earlier, as pork supplies quickly grew tighter. To help fill the gap between supply and demand, China turned to more imports from the U.S. and 10 other countries. Despite retaliatory tariffs of up to 78 percent implemented on U.S. pork products, 2019 U.S. exports of pork to China have increased 91 percent through August. Total U.S. pork exports in 2019 are now forecast at 6.85 billion pounds, 12 percent higher than last year. In 2020, USDA is forecasting total U.S. pork exports of 7.3 billion pounds, an 11 percent jump over this year. ********************************************************************************************** September Beef Exports Steady; Pork Higher but Pace Slowing September exports of U.S. beef were steady with last year’s volume, but the export value was trending lower. That’s according to USDA data compiled by the U.S. Meat Export Federation. Pork exports were above last year’s levels in September but had pulled back from the larger totals in June, July, and August. September beef exports were just shy of 109,800 metric tons, basically even with 2018, and down four percent in value to $661 million. Through the first three quarters of this year, beef exports were two percent below last year’s record pace in both volume and value. September pork exports increased 13 percent from a year ago in volume, totaling 202,248 metric tons, and valued at $532 million. Those numbers pushed the January through September export volume five percent ahead of last year’s pace at 1.9 million metric tons. The retail value of exports to date two percent higher at $4.89 billion. Beef exports to Japan are still struggling with the tariff rate gap between U.S. beef and the competition. However, beef exports to South Korea continue to build on a strong performance last year. Pork exports to Mexico have rebounded significantly since Mexico removed its 20 percent retaliatory duty on U.S. pork in late May. ********************************************************************************************** Hemp Federation of America Flying into Washington, D.C. The brand-new Hemp Federation of America is planning its first-ever fly-in to Washington, D.C., this week. The fly-in is happening at the same time that Reuters is reporting farmers are having a difficult time finding markets for this year’s hemp crop. Oklahoma farmer Will Wheeler is the board chair for the federation. He says an industry with a domestic market estimated at $800 million to $2 billion every year needs to have its trade association in Washington. “There’s no question that a viable crop like this has hundreds and even thousands of uses,” Wheeler says. “But, we have to get this right. That’s why we formed the Hemp Federation of America, so farmers can be a part of shaping the legislation that regulates industrial hemp, thanks to our presence in Washington.” Scott Graves is the HFA’s executive director, who says, “There is a tremendous amount of work ahead with Congress and the administration to put together a regulatory framework that makes sense. That’s how we’re going to help grow the market for American farmers and businesses.” Federation priorities include educating lawmakers and others on how to tell the difference between hemp and cannabis.
| Rural Advocate News | Monday November 11, 2019 |
Washington Insider: Fed Focus on Potential Impacts of Climate Change While differences of opinion between the Trump administration and the Fed are well known, one more seems to be in the process of being added, Bloomberg says – changes in the climate. The Fed held a conference in San Francisco last week and potential impacts of changes in the climate were featured for the first time. Bloomberg says the presentations noted that climate change makes investments riskier, blunts workers’ productivity, and shakes up monetary stability. President Donald Trump and some of his key advisors have been famously skeptical of scientific data about shifting climates. So the central bank’s decision to host a daylong series of climate talks this week – the first ever for the Federal Reserve system – appears to mark another step in its growing public recognition that climate change is creating financial uncertainty and an increasing difference of opinion on the importance of the topic. “The Federal Reserve’s job is to promote a healthy, stable economy,” San Francisco Fed President Mary Daly said at the Nov. 8 event. “This requires us to consider current and future risks, whether we have a direct influence on them or not. Climate change is one of those risks.” Bloomberg also weighed in with the observation that the conference “heightens tensions between the Fed and the President,” who has called climate science a hoax, and repeatedly blasted the bank on Twitter – mostly for not cutting interest rates. Bloomberg very briefly noted a few conference highlights. It said “one conference paper,” presented by Dana Kiku, an associate professor of finance at the University of Illinois Gies College of Business, detailed how rising temperatures create long-term economic risks. Another by Sandra Batten, a senior economist at the Bank of England, concluded that the risks of climate change can trigger inflation and cause businesses and individuals to struggle to anticipate how the economy will perform. Rising temperatures also reduce the labor supply for outdoor workers in industries such as construction, mining, and manufacturing, said Solomon Hsiang, a public policy professor at the University of California at Berkeley Goldman School of Public Policy. That leads to reduced work time and damaged firm profits, Hsiang said. Other economists spoke about the link between pollution and economic output, the possibility of anti-oil policies generating a run on oil and how differences in nations’ trade policies create implicit subsidies to carbon emissions. Fed Chairman Jerome Powell wrote earlier to Sen. Brian Schatz, D-Hawaii, that severe weather events “have the potential to inflict serious damage on the lives of individuals and families, devastate local economies (including financial institutions), and even temporarily affect national economic output and employment.” As a result, “these events may affect the economic conditions, which we take into account in our assessment of the outlook for the economy,” Powell said. Damage from severe weather in the U.S. cost insurers more than $50 billion in 2018, Daly said. That figure nearly doubles if uninsured damage is taken into account, she said. “This impacts banks’ customers, making it harder for them to satisfy their loan obligations,” Daly said. “And this can ultimately stress banks’ balance sheets. So ensuring that financial institutions are regularly evaluating their exposure to climate-related risks is an increasingly important part of our work.” The talks also raised concerns about future efforts by Congress to deal with climate change problems. Schatz, who sits on the Senate Banking Committee, told Bloomberg that he is readying legislation that would direct large banks and other financial institutions to conduct stress tests to gauge whether they are well-positioned to absorb climate change risks. So, we will see. It would seem to be an uphill climb to expect that the impact of the Fed’s new focus on the climate will rapidly change the policies of the numerous agencies including USDA and others who have been struggling with internal efforts to downplay the issue. At the same time, political concerns about the climate are growing widely and likely will continue to do so in spite of the skeptics’ efforts. This is a debate producers should watch closely as it intensifies, and especially if it results in new practices and rules applied by the banking community, Washington Insider believes.
| Rural Advocate News | Monday November 11, 2019 |
Rep. Peterson: House Could Vote On USMCA As Soon As This Week House Ag Committee Chairman Collin Peterson, D-Minn., said House Speaker Nancy Pelosi, D-Calif., wants to get the U.S.-Mexico-Canada Agreement (USMCA) vote on the fast track. “[USMCA Working Group chair] Richard [Neal] told me he is going to try to move it when we get back…, or the week after, so he is pushing hard,” Peterson told Pro Farmer in an interview. “It is going to get done. The question is, is it going to get done in those two weeks or is it going to get done in December?” Peterson noted that Pelosi talked about the push to pass USMCA on a caucus conference call last week. “She was pushing and explaining the USMCA on that call, and she would not be doing that if she did not want to get this done,” Peterson explained. “So, this is going to get done.” The USMCA working group has been meeting with U.S. Trade Representative Robert Lighthizer to negotiate changes to the trade agreement required to get votes from both sides of the aisle. Peterson said he anticipates that work will clear the way for rapid approval in all three countries.
| Rural Advocate News | Monday November 11, 2019 |
USDA’s Perdue Confirms Second MFP 2 Payment Coming The second installment of the Market Facilitation Program 2 (MFP 2) payments to farmers has been approved, USDA Secretary Sonny Perdue confirmed in a press call with reporters. “We have just gotten authorization on the second tranche” of aid payments and USDA is working to get them ready “hopefully by the end of this month, early December,” he remarked. Asked if another MFP effort in 2020 is in the cards, Perdue said he hoped that a U.S.-China deal could temper the need for such an effort. USDA has paid out $6.7 billion under the MFP 2 program so far. The amount of Chinese purchasing under discussion “would be very beneficial to agricultural producers and we’re hopeful that trade would supplant any type of farm aid needed in 2020 in that regard,” Perdue told reporters. However, given that the commodity purchases by China will be ramping up over at least a two-year period, that could temper the market response. An MFP 3 program is potentially more difficult, but not impossible, to get approved. Meanwhile, USDA Undersecretary Bill Northey said in Minnesota Thursday that USDA has paid out $500 million in the top-up payments on prevent plant under the disaster aid effort.
| Rural Advocate News | Friday November 8, 2019 |
China, U.S., Strike Tariff Rollback Agreement The U.S. and China will roll back tariffs if they strike a preliminary deal, a move requested by China before signing a phase one trade agreement. The signing of the agreement may be now delayed until next month, but the two sides continue to wrap up the talks, according to the South China Morning Post. A spokesperson for China’s Commerce Ministry says, "top negotiators have had serious and constructive discussions on resolving issues of core concerns” over the last two weeks. China’s Agriculture Ministry announced it will consider removing restrictions on the import of U.S. poultry. China says the U.S. and China should remove tariffs simultaneously, as part of reaching the agreement. If reached, the agreement would be welcome news to U.S. agriculture, as it’s thought to include $40-50 billion of U.S. ag exports to China over the next two years. U.S. agricultural exports to China dropped roughly $10 billion annually, half the usual amount since the trade war began. ************************************************************************************* U.S. Democrats Tell Trudeau USMCA Negotiations Near Completion A delegation of U.S. House Democrats this week told Canadian Prime Minister Justin Trudeau the U.S.-Mexico-Canada Agreement negotiations are nearly complete. Led by Representative Richard Neal, the group met with Trudeau and other top officials from Canada. Neal says of the talks, “Significant progress is being achieved” on the agreement. Trudeau says the group talked about jobs and opportunities USCMA will create and how they will "work together to keep strengthening the long-standing relationship between Canada and the United States.” Few U.S. legislative days remain to pass the agreement in 2019, with Congress mired by the House impeachment inquiry and the need to quickly pass spending bills. House Speaker Nancy Pelosi last week appeared optimistic the White House and her chamber could reach an agreement to pass USMCA. However, she suggested the process may linger into 2020. Neal says House Democrats continue to engage in productive discussions with Trade Representative Robert Lighthizer to “achieve their priorities” in the agreement. ************************************************************************************* NPPC Launches USMCA Campaign The National Pork Producers council Thursday launched a campaign to highlight the importance and benefits of the U.S.-Mexico-Canada trade agreement. The "It's Pork O' Clock Somewhere," campaign focuses on pork and the many ways it's enjoyed across North America. NPPC president David Herring says, “Ratification of USMCA is the top priority for U.S. pork producers, and there is no better way to highlight its importance." Last year, more than 40 percent of U.S. pork exported went to Canada and Mexico. The campaign thanks lawmakers for making USMCA ratification this year a priority and highlights the history behind pork-related dishes in the United States, Mexico and Canada. For example, tacos al pastor from Mexico have origins in the Lebanese method of cooking meat on a spit, referred to as shawarma. The tacos are a staple in Mexico City, where taco shops and stands line the streets. Last year, the United States sent more than 770,000 tons, worth $1.3 billion, of pork to Mexico. To learn more about NPPC's campaign, visit www.porkoclock.org. ************************************************************************************* EPA Seeks Nominations for Farm/Rural Federal Advisory Committee Environmental Protection Agency Administrator Andrew Wheeler Thursday asked for nominees to serve on the Farm, Ranch, and Rural Communities Committee. EPA is seeking 20-30 nominees to serve on the committee that provides independent policy advice, information and recommendations to EPA’s Administrator on environmental issues and policies important to agriculture and rural communities. Members will be selected from a variety of sectors and may represent allied industries and stakeholders, including farm groups, rural suppliers, marketers, processors, academia/researchers, state, local, and tribal government, and nongovernmental organizations. The previous charter for the committee was scheduled to expire and was renewed in 2018. However, the committee currently has no members. EPA is specifically seeking 20-30 members for two-three-year terms, and the committee expects to meet approximately twice a year. Applications must be received by EPA by December 31, 2019. Full details about qualifications and how to apply will be published in the Federal Register Notice, and on the EPA’s website. ************************************************************************************* USDA Finds Genetic Path to Double Sorghum Yield Scientists with the Department of Agriculture’s Agricultural Research Service have discovered genes in sorghum that can double the amount of grain the plant produces. Their findings, spelled out in a series of papers, are based on years of research that initially focused on a search for the genetic underpinnings of high yielding strains of sorghum. They also lay out a potential strategy for increasing the yields not only of sorghum but of other grain crops, such as corn, wheat and rice. Sorghum is drought tolerant and is an important crop for farmers worldwide. Increasing production is considered a key to addressing the threat of food shortages in the years ahead with changing climates, growing populations overseas and the loss of arable land in many parts of the world. Their results show that the gene, known as MSD1, is a major regulator of a cascading series of events along a genetic pathway. They found two other genes in the genetic pathway, and say mutating any of the three genes causes a similar increase in grain yield. ************************************************************************************* Hemp Farmer Says New York Police Mistook Hemp Shipment as Marijuana Police in New York last week intercepted and seized a shipment of organic hemp, allegedly mistaking it for marijuana. Vermont’s NBC-5 reports Fox Holler Farms of New Haven, Vermont, took a 106 lbs. shipment of organic hemp to FedEx, and “made clear what it was,” adding the shipment was legal. However, police acted on an apparent tip and seized the shipment, and arrested a CBD shop owner who arrived to pick up the boxes. The farm owners allege detectives seemed unaware of the difference between hemp and marijuana. While hemp and marijuana look similar, the farm owners say paperwork and testing information was included in the shipment. The 2018 farm bill legalized hemp production, but it must be tested to be sure it meets federal guidelines of low THC levels. Vermont agriculture leaders say they have contacted New York Agriculture Commissioner Richard Ball, to make him aware of the situation, hoping he might help sort out the confusion. Meanwhile, New York police continue their investigation.
| Rural Advocate News | Friday November 8, 2019 |
Washington Insider: High Tariff Costs Well, a few hints of easing pressure on the U.S.-China trade standoff are being reported this week and markets have been responding accordingly. However, not all the press was favorable. The Hill reported that U.S. consumers and businesses paid a record $7.1 billion in tariffs in September “due largely to President Trump’s trade war with China.” It said the calculation was based on new data and a new analysis. Roughly $4.1 billion of the $7.1 billion in import taxes paid by Americans in September were levied through tariffs the administration imposed on Chinese goods since 2018. The total amount of tariffs paid by Americans has increased 59% since September 2018 and has risen $600 million since August 2019, The Hill said. The work behind the report was commissioned and released by Tariffs Hurt the Heartland, a coalition of trade groups opposed to import taxes, The Hill reported. Since March 2018, the administration has imposed tariffs on more than $350 billion in imports from China and another round of tariffs on close to $200 billion in Chinese goods is scheduled to take effect on Dec. 15. That would subject almost all U.S. Chinese imports to additional tariffs. However, U.S. and Chinese officials claim to be nearing a preliminary trade deal that would grant China relief from some tariffs in exchange for drastically increasing purchases of American farm exports, among other concessions, the report said. President Trump and Chinese President Xi Jinping were expected to sign the so-called phase one trade deal at a now-canceled summit of Pacific nations in Chile later this month. Reuters reported Wednesday that the signing may be delayed until December as Trump and Xi mull new locations. “Negotiations are continuing and progress is being made on the text of the phase-one agreement," White House spokesman Judd Deere told The Hill. "We will let you know when we have an announcement on a signing location.” The U.S. has collected tariffs on foreign goods throughout its history and import taxes were once a primary source of federal revenue. But after decades of trade liberalization, the administration’s imposition of steep tariffs on Chinese goods has vastly increased the amount in import taxes paid by U.S. consumers and firms. President Trump frequently insists that China effectively pays the cost of U.S. tariffs on its goods through currency devaluation and reduced product prices. And while the president argues that the U.S. economy has not been harmed by tariffs, manufacturers and farmers have been slammed with higher costs and lower global demand. The U.S. manufacturing sector has suffered through a recession for most of 2019, due largely to the rising costs of Chinese goods and parts not easily obtainable from other nations. A steep decline in global economic growth has also dampened foreign demand for U.S. goods. U.S. farmers and ranchers have also lost billions in sales to China after Beijing imposed retaliatory tariffs on American agricultural exports, The Hill says. While the U.S. exports to China are “a fraction” of the value of goods it imports from the country, China is a crucial market for the ailing American ag sector. “This data offers concrete proof that tariffs are taxes paid by American businesses, farmers and consumers – not by China,” Jonathan Gold, a spokesman for Americans for Free Trade, another anti-tariff coalition of trade groups told The Hill. President Trump has consistently blamed the Federal Reserve for the steep decline in American manufacturing and business investment, insisting that the central bank has hindered the U.S. from its full economic potential. President Trump’s tariffs on Chinese goods have yet to hinder solid consumer spending and the unemployment rate is “near record lows,” The Hill said. But the bulk of pending tariffs on Chinese goods apply to crucial consumer items like clothing, shoes, toys, household products and technology. In addition, economists say that new consumer-facing tariffs are the biggest threat posed by the administration’s trade policy to the broader economy. So, we will see. Clearly, many producers and others see any reduction of tensions in the U.S.-China trade war as very good news, but many observers continue to be skeptical of the success of “phase one” of the negotiations, and of the eventual benefits from the “get tough” trade policy. The report of a more than $7 billion tariff cost in the month of September is likely to attract attention among nearly all interest groups in the trade policy issue—a debate that should be watched closely by producers as it intensifies, Washington Insider believes.
| Rural Advocate News | Friday November 8, 2019 |
House Democrats, Canadian PM Meet to Discuss USMCA House Democrats met with Canadian Prime Minister Justin Trudeau, Foreign Affairs Minister Chrystia Freeland and Labor Minister Patty Hadju Wednesday to discuss the U.S.-Mexico-Canada Agreement (USMCA). “I particularly stressed the importance of meaningful enforcement mechanisms that ensure the protection of workers in all three nations and of our shared environment,” said House Ways and Means Committee Chairman Richard Neal, D-Mass., who led the delegation. “I’m pleased that our neighbors to the north also have a strong desire for an agreement that benefits our economies while also lifting up our people,” he added. Meanwhile, Canadian news outlets reported Trudeau said is working with U.S. lawmakers to reach a “good place where we have the right deal for Canada, the United States and for Mexico. It is a pleasure to see the positive momentum that seems to be happening on this renewal of this very important trade deal.”
| Rural Advocate News | Friday November 8, 2019 |
China Touts Agreement With US To Lift Tariffs In Phase One Deal The U.S. and China have agreed to remove trade tariffs in stages as part of a “phase one” trade agreement currently being negotiated, the Chinese Ministry of Commerce said on Thursday. “In the past two weeks, top negotiators have had serious and constructive discussions on resolving issues of core concern. Both sides agreed to remove the additional tariffs imposed in phases as progress is made on the agreement,” ministry spokesperson Gao Feng said. “If China and the U.S. reach a Phase One deal, both sides should roll back existing additional tariffs in the same proportion simultaneously.” Gao said that both sides will negotiate how much of the tariffs to eliminate based on the content of the final Phase One deal. Negotiations to finalize the deal are ongoing, and “economic and trade teams from both sides have been in constant communication,” he added. Trump administration officials have yet to confirm the agreement to lift duties and the exact details regarding what tariffs may be eliminated remain unclear.
| Rural Advocate News | Friday November 8, 2019 |
Friday Watch List Markets Friday's main event will be USDA's WASDE report at 11 a.m. CST, featuring new crop estimates for corn and soybeans. USDA's Crop Production report will also include updated estimates of spring wheat and durum crops in several northern states where harvest experienced adverse weather. Recent trade news with China suggests progress and ears will be tilted to hear more specifics. Weather Dry conditions will cover all primary crop areas Friday, favoring harvest. Temperatures will have a sharp contrast between warm west and cold east.
| Rural Advocate News | Thursday November 7, 2019 |
Washington Insider: Potential Trade Interdependence This week The Hill is carrying an OpEd by Thomas Parsons, Vet Med professor, and Scott Moore, China Program Director at the University of Pennsylvania regarding livestock disease dangers. The note is in response to the recent “animal apocalypse” unfolding in China as African Swine Fever has devastated its swine population and likely killed more than 25% of the world’s hogs. However, as stark as those data are, the authors argue that the real costs of this calamity go much deeper. Perhaps more than any other commodity, pork’s role is “as much political and environmental” as it is economic. And the writers argue that even if Washington and Beijing manage to end their commercial conflict, “they’ll need to find new ways to cooperate to prevent threats like ASF from reaching the U.S.” For both China and the U.S., “pork stands out among the hundreds of thousands of commodities that make up nearly $700 billion worth of annual trade for its political importance.” In the U.S., this significance comes by way of the political clout of hog producers since a “very large share of the top pork counties were part of the President’s base in 2016” — a political link that remains strong despite the negative consequences of the trade war. In China, pork consumption is deeply embedded in the Middle Kingdom’s culture and cuisine. China is both the world’s largest producer and consumer of pork, and pork accounts for more than 75% of its meat consumption, especially during holidays, festivals, and formal banquets. Given this importance, politicians have grown nervous as the trade war devastates “what should have been a classic gains-from-trade scenario for American producers and Chinese consumers,” the writers say. In fact, Chinese pork prices have skyrocketed, the authors say and now are four times their U.S. level. Ordinarily, this would present a great opportunity for America’s highly efficient pork producers to fill the gap. But because Beijing responded to the administration’s tariffs by imposing duties of their own on U.S. ag exports, American producers “have largely have been priced out of the Chinese market,” leaving other countries to fill the void. USDA pegs the loss to U.S. producers at $860 million while the National Pork Producers Council says it is “over $1 billon.” So far, U.S. producers are attempting to compensate by expanding into markets like South Korea, but export opportunities there are only a fraction of those in China. China’s leaders, meanwhile, are clearly concerned about the long-term impact of both ASF and the trade war. Recently, Beijing has agreed to buy large quantities of U.S. agriculture products, including pork, as part of a “phase one” trade deal. However, the writers say it would be a mistake to read too much into this move since similar Chinese overtures in the past have never been fully implemented and Beijing is already “starting to waiver on its most recent commitment.” When it comes to the trade war at large, Beijing has shown no signs of willingness to throw in the towel, The OpEd writers say in spite of short-term concessions on pork and other agricultural imports. It is making long-term investments in self-sufficiency in swine production — signaling that for pork, like other commodities, its long-term objective is not to increase imports but rather to phase them out altogether. Meanwhile, the fallout from the combined effects of ASF and the trade war continue to imperil the pork industry “on both sides of the Pacific.” The Chinese government is working to incentivize commercial swine production by both low cost loans and reduced environmental regulations. But losses from ASF are so great that even after the deployment of their strategic pork reserve, China will be faced with insufficient pork supplies and high consumer pork prices, possibly for years to come. Meanwhile, in the U.S., the pork industry is still reeling from the billion dollars of lost income in previous years. Volatility from on-again/off-again Chinese pork purchases driven by the ebbs and flows of the trade war has confounded strategic planning by individual businesses. ASF has now spread from China to nine neighboring countries and thus is a lingering fear among many experts that it’s not a question of whether ASF reaches American shores, but when. Pork, though just one of the many items that make up China’s trade with the United States, tells the story of the two countries’ political and economic interdependence more poignantly than any other, the writers think. No other commodity so vividly illustrates the trade war’s economic, political, and environmental costs — or the reality that, whatever the state of tensions between Washington and Beijing, the fate of farmers in both the U.S. and China is fundamentally shared. So, we will see. In spite of basic self-sufficiency policies, in recent years China has moved to increase its dependence on some imports, including vital products like vegetable oil seeds — and they might well do something similar with pork, an argument against continued heavy U.S. dependence on tariffs. This tends to argue for increasingly sensitive and detailed trade negotiations, as a number of U.S. groups are now arguing, Washington Insider believes.
| Rural Advocate News | Thursday November 7, 2019 |
China Lifts Ban On Imports Of Canadian Beef, Pork Canadian Prime Minister Justin Trudeau announced on Twitter Tuesday that China has lifted its ban imports of Canadian pork and beef. “Good news for Canadian farmers today: Canadian pork and beef exports to China will resume.” Trudeau credited Dominic Barton, the recently appointed Canadian ambassador to China, and the country’s meat industry for “reopening this important market for our meat producers and their families.” The move ends a four-month long trade dispute that started soon after Canada arrested a Huawei executive at the request of the U.S. Pork processed on or after November 5 is eligible to be shipped to China, meaning that provided the proper paperwork accompanies shipments, exports can start nearly immediately. However, there was no news on the situation with canola or soybean trade between the two countries.
| Rural Advocate News | Thursday November 7, 2019 |
US Ag Exports Miss USDA’s Forecast For FY 2019 U.S. agricultural exports in September totaled $10.30 billion against imports of $10.08 billion for a monthly surplus of $219.8 million. That put U.S. ag exports for Fiscal Year (FY) 2019 at $135.57 billion against imports of $130.94 billion for a trade surplus of $4.63 billion. USDA’s forecast for exports was too robust at $137 billion while their import outlook was too conservative at $129 billion. The level of imports still registered a new record even as the September result was the second lowest of FY 2019. But imports topped $11 billion four months in FY 2019 with one of those months seeing imports of more than $12 billion. The September ag export total was the lowest of FY 2019 and the smallest monthly export total since June 2016. The resulting trade surplus for FY 2019 is the smallest since it was $4.57 billion in FY 2006.
| Rural Advocate News | Thursday November 7, 2019 |
Ethanol Industry Looking South for New Business Corn growers and ethanol manufacturers are increasingly frustrated with blending waivers for oil refiners deflating the domestic biofuel market. While those groups continue to negotiate with the White House for a solution to the challenge, the industry is looking at foreign buyers as a way to make up for lost sales. Trade groups are looking south of the border for more business. The U.S. Grains Council and the American Coalition for Ethanol have been working with Mexican officials to promote the use of a 10 percent ethanol blend in Mexico. They’re hosting workshops on the topic and using them to target Mexico’s gas station owners, petroleum equipment retailers, as well as the nation’s ag and energy leaders. U.S. ethanol exports to Mexico have been used more for producing other products instead of as transportation fuel. However, retailers in border locations are buying more pre-blended E10 at U.S. locations and reselling it at Mexican gas stations. Mexico currently allows E10 sales nationwide, except in its three largest cities, which are Guadalajara (Gwad-ah-lah-HAR-ah), Mexico City, and Monterrey. But, Ryan LeGrand, CEO of the U.S. Grains Council, expects Mexico’s energy officials to offer up a proposal to allow E10 in those three locations by the end of 2019. ********************************************************************************************** NPB Study Shows Protein Opportunity in China A new National Pork Board report looks into the short term and long-term need for protein in China. It also talks about how U.S. pork producers can position themselves to fill that need. The new report is titled “Pork 2040: China Market Assessment.” It also looks at the impact African Swine Fever is having on China’s short term and long-term protein needs and how the Chinese pork industry and supply chain will change as a result of the outbreak. Norman Bessac (bah-sack), the NPB’s Vice President of International Marketing, says “Pork is a critical part of the Chinese diet, with per capita consumption estimated to be nearly 88 pounds per person every year.” The report will help exporters position U.S. pork as the supplier of choice, which will add value for all U.S. pork producers. The NPB report says Chinese pork consumption peaked in 2014 and will continue a slow decline as the Chinese population grows to its highest level on record in 2030. Other proteins like chicken, fish, and beef, will become more available as Chinese disposable income increases, which means consumers will diversify their protein consumption. The report outlines key steps exporters can take before China’s domestic pork production rebounds, which experts predict will happen by 2025. ********************************************************************************************* Canada Resuming Beef, Pork Exports to China Prime Minister Justin Trudeau says Canada’s beef and pork exports to China will resume, ending a four-month trade dispute with Beijing. Trudeau said earlier this week on Twitter that China has lifted the import ban it put in place earlier this year. “Good news for Canadian farmers today,” Trudeau tweeted. “Thanks to Ambassador Barton and the Canadian meat industry for their work on re-opening this important market for our meat producers and their families.” Farm Journal’s Ag Web Dot Com says the dispute began when China and Canada worked together and suspended all Canadian meat imports on June 25 after finding a forged delivery certificate on pork cargo, which was later confirmed by the Canadian Food Inspection Agency. Rick Bergmann, Chair of the Canadian Pork Council, appreciates the efforts of government officials to help restore their access to the Chinese market. In July, the council said Canada had put out an action plan that addressed some of the Chinese concerns and was waiting for a response. China is an important market for Canadian producers. In 2018, Canada’s pork exports totaled just about $4 billion, with over $500 million going to China. ********************************************************************************************** Grassley Working on Tariff Reform Iowa Senator Chuck Grassley, who also chairs the Senate Finance Committee, is working on reforming Section 232 tariff authority. He says Congress gave away their authority on trade to the White House back during the Kennedy Administration. Agri-Pulse says Grassley is looking for legislators to take back some of the power they gave away. Grassley says some lawmakers are worried that such a move would upset President Donald Trump. Grassley’s response is “that shouldn’t stop Congress from acting.” Grassley’s staff has been busy trying to combine two bipartisan bills designed to tone down the president’s authority to impose Section 232 tariffs on foreign countries. The tariff authority was first put in place to punish other countries that threatened U.S. national security. “We need reforms to Section 232 that make it clearer where Congress stands on national security and trade,” Grassley says. “Such reforms would make it clearer to our trading partners that when Section 232 is used, Congress stands with the president.” The Finance Committee’s ranking Democrat, Ron Wyden, says there hasn’t been any agreement yet because both sides of the political aisle have concerns that need to be worked out. ********************************************************************************************** NBB Applauds Letter on Tax Incentives Forty Democratic members of the House of Representatives sent a letter to Speaker Nancy Pelosi and Ways and Means Chair Richard Neal regarding expired tax incentives. They’re asking leadership to make an extension of expired tax incentives an urgent legislative priority before the end of the year. The National Biodiesel Board thanked them for their efforts and emphasized that renewing the biodiesel tax credits before the end of the year is crucial to reviving production. It would reopen production facilities and save countless jobs. The representatives say in the letter that, “Extending the biodiesel, alternative fuel vehicle refueling property, and second-generation biofuel producer tax credits are especially important to the regions we represent. Participants up and down the supply chain are experiencing hardship as a result of this lengthy collapse in credits.” NBB Vice President of Federal Affairs Kurt Kovarik says his group appreciates the representatives drawing attention to the economic situation facing advanced biofuel producers. “Nine biodiesel producers in six states have been forced to close, cut production, and lay off workers,” Kovarik says. “That’s because blenders count on Congress to renew the tax credit and demand a discount on the price of biodiesel.” He says producers have taken a loss for nearly two full years because of the expired credits. ********************************************************************************************** Is a Hemp Checkoff Coming from USDA? A USDA official said earlier this week that the U.S. hemp industry could have a producer-funded checkoff program coming soon. The Agricultural Marketing Service’s Director of the Specialty Crops Programs’ Promotion and Economics Division spoke at the Hemp Industries Association’s annual conference. Hemp Industry Daily notes that the director said the hemp industry “clearly has shown interest” in paying fees to promote their product, saying that “the idea here is that a rising tide would lift every boat.” If a checkoff program comes to fruition, hemp would join 21 other crops that have their own checkoffs, including soybeans, cotton, milk, pork, watermelon, and even popcorn. Growers would pay mandatory fees to go into a fund that’s used for research and marketing. A checkoff would benefit the emerging hemp industry struggling to get out from under marijuana-related misconceptions. A checkoff program would also be seen as an endorsement from USDA, making hemp a legitimate crop with long-term potential. Thousands of farmers took the plunge into hemp production after the 2018 farm bill legalized production of the plant. That flood of new growers is why some hemp farmers are struggling to find markets for their first post-farm bill harvest. Despite increasing demand for hemp-related products, the rush of new growers appears to have driven down prices.
| Rural Advocate News | Thursday November 7, 2019 |
Thursday Watch List Markets Thursday's reports start at 7:30 a.m. CST and include weekly grain export sales, U.S. jobless claims and an updated U.S. Drought Monitor. Weekly natural gas inventory follows at 9:30 a.m. CST. Weather forecasts and trade news still have interest for markets, but grain trading may be slow ahead of Friday's WASDE report. Weather A broad swath of rain and mixed precipitation will extend from the Texas Panhandle to the eastern Great Lakes Thursday. This includes locally heavy rain and flood threat in the southeastern Plains and northern Delta. Other areas will be dry. Harvest progress is favored in northern crop areas with this setup. Cold temperatures north will keep progress slow.
| Rural Advocate News | Wednesday November 6, 2019 |
October Ag Economy Barometer Improves The October Ag Economy Barometer improved to a reading of 136 in October, up 15 points compared to September. The monthly measure of the farm economy saw an increase in the assessment of current and future conditions by farmers. The Current Conditions Index rose from 100 in September to 115 in October, and the Futures Expectations Index also rose 15 points to a reading of 146. The results are based upon a nationwide telephone survey of 400 U.S. crop and livestock producers. Organizers say farmers in October were more inclined to think now is a good time to make large investments in their farming operations, and more farmers said they expect farmland values to rise, than in September. Although three-fourths of farmers in this month’s survey said they expect the soybean trade dispute with China to be resolved favorably to U.S. agriculture, 62 percent of producers said they expect to receive another round of trade aid payments for the 2020 crop year. ************************************************************************************* China Urges Trump to Lift Tariffs China wants the United States to commit to lifting tariffs to reach a phase one trade agreement. The South China Morning Post reports Beijing needs America to be more responsive to its concerns, if it wants Chinese President Xi Jinping (Shee Jihn’-ping) to visit the U.S. to sign the deal. There’s been no firm commitment by the U.S. to delay a December round of tariffs, and China also appears to want the U.S. to lift its recent round of tariffs from September. China says that without a move by President Donald Trump to make a “solid commitment” towards removing tariffs, scheduling a visit to the U.S. to sign the agreement “would be politically difficult.” U.S. officials have suggested they meet in Alaska, Iowa or Hawaii to sign the agreement. The two sides originally planned to sign the agreement on the sidelines of a now-canceled meeting in Chile. Sources close to the China talks say China fears it may have made too many concessions in the agreement. ************************************************************************************* Rabo Releases Ten-year Grain Forecasts A new grain price outlook underlines continuing long-term challenges for U.S. farmers. Rabo AgriFinance just released its ten-year outlook for corn, soybeans and wheat. The report says ending stocks will continue to be an issue for the crops, as the long-term trends for yield increases make up the difference in lower acre numbers while demand remains flat. The report says these stocks will keep a lid on commodity prices. Even if the U.S. and Chinese government’s resolve their trade dispute, Rabo expects soybean demand to drag due to the lingering effects of African swine fever, namely slow or limited sow herd rebuilding in China and Southeast Asia. The analysis shows a 75 percent probability that soybean prices will remain under $9.60 per bushel. For corn and wheat, the report says, "oversupply, flat domestic use, no or little growth in exports, and increased global trade competition" continue to pile up. Given no changes to ethanol policy, the outlooks call for animal feed to overtake ethanol as the demand driver for corn in 2026/27. ************************************************************************************* Peterson: MFP Picks Winners and Losers A recent letter to Agriculture Secretary Sonny Perdue says the current Market Facilitation Program creates “winners and losers among neighbors.” The Letter by House Agriculture Committee Chairman Collin Peterson urges the Department of Agriculture to strongly consider a list of concerns in issuing the next round of payments under the program. Peterson says acres not certified or enrolled in farm programs in 2018 are not eligible for the program, which is problematic for farms that recently changed hands where the previous owner didn’t participate in farm programs. Additionally, Peterson says crop rotations have prevented farmers from receiving payments, and the payments don’t account for the impact on crop basis created by trade disruptions. Regarding the MFP dairy program, Peterson says farmers have many questions about why their payments were based on established farm program production history, and not actual production. Peterson says he “stands ready to work with the administration” on long term fixes to the commodity safety net. ************************************************************************************* Senator Baldwin Announces Increased Rural Mental Health Funding Senator Tammy Baldwin this week announced increased mental health funding for farmers. The Wisconsin Democrat’s Facilitating Accessible Resources for Mental health and Encouraging Rural Solutions for Immediate Response to Stressful Times, or FARMERS FIRST Act, provides funding for local mental health resources. The bill was included in the 2018 farm bill, passed last year. Baldwin worked to pass an amendment last week to a Senate appropriations bill that will provide $8 million, an increase of $6 million from Fiscal Year 2019, for the bipartisan legislation. Baldwin says, “farmers are facing many difficult challenges and we all need to work together to provide them the support they need.” Reports from the Centers for Disease Control and Prevention have found that farmers and other individuals who work in agriculture experience a high rate of suicide. The increased funding will help expand access to stress reduction strategies and suicide prevention programs for people who work in agriculture. ************************************************************************************* Coalition Urges Trump to Uphold Biofuel Promise A broad coalition of biofuel and farm advocates this week sent a letter to the White House calling on President Donald Trump to fix a flawed proposal from the Environmental Protection Agency. The EPA proposal on biofuels, according to the coalition, "fails in its mission to reinvigorate farm economies and reopen biofuel plants across America's heartland." The letter was signed by 60 organizations, including the Renewable Fuels Association. It notes that the EPA's draft plan undermines the administration's commitment to restore integrity to the Renewable Fuel Standard and accurately account for biofuel demand destroyed by small refinery exemptions. The groups state that the flawed proposal “swaps out a critical component of the SRE remedy sought by farmers and,” and instead proposes to recover only those gallons previously recommended for exemption by the U.S. Department of Energy. The National Corn Growers Association says to the President, "The proposal - as written - will not provide the relief we believe you are seeking."
| Rural Advocate News | Wednesday November 6, 2019 |
Washington Insider: Trade Outlook Uncertainty Persists There is lots of media interest in trade negotiations this week, amid continuing deep uncertainty, Bloomberg is reporting. It notes that President Xi Jinping stressed China’s commitment to the global trading order as his trade negotiators “wrangle with the U.S. over rolling back punitive tariffs” ahead of a phase one deal. As Xi spoke in Shanghai, the nation’s central bank acted in Beijing to stem a sell-off in the debt market. The People’s Bank of China reduced the cost of 1-year funds to banks for the first time since 2016 after a week in which investors had dumped debt amid fears of tightening liquidity. At the opening of the second annual China International Import Expo, Xi said the country would “open its doors only wider” to the world. He refrained from taking a swipe at his U.S. counterpart Donald Trump, as he’d done the previous year, and didn’t refer to the prospective deal to defuse the tariff war. “We must all put the common good of humanity first rather than place one’s own interests above the common interests of all,” Xi said. Amid the current trade standoff, China has sought to stabilize its economy without flooding it with liquidity for fear of worsening its debt problems. It has retaliated against the administration’s tariff barrage but been careful not to escalate a conflict that’s sapped confidence and weighed on manufacturers. “It is obvious that deep conflicts of interest still exist between China and the U.S.,” Li Yang, a member of the government think tank the Chinese Academy of Social Sciences, said in an interview in Shanghai after Xi’s address. “But China and the U.S. have now embarked on a path seeking practical solutions. I feel the likelihood for a major clash or start of a new cold war has disappeared.” The central bank has been similarly restrained this year, defying many economists’ expectations of major stimulus. Tuesday’s 5 basis-point reduction in the 1-year medium term lending facility was greeted as largely symbolic in economic terms, though it did stop the “rot in bonds” for now. The offshore yuan on Tuesday strengthened past 7 per dollar for first time since falling below that key level in August. China’s benchmark 10-year yield dropped the most since August, while the cost on 12-month interest-rate swaps fell the most in a month. China’s economic growth has slowed to the weakest pace in almost three decades, with economists forecasting that the expansion will slip further to below 6% next year. Rather than embark on a short-term stimulus boost, Xi’s government has instead focused on defusing the nation’s ticking debt bomb and promoting structural changes such as the shift to a more consumption-led economy. “China will give greater importance to imports,” Xi said Tuesday. “We will continue to lower tariffs and institutional transaction costs,” he added, repeating earlier pledges. China’s imports have contracted this year. “Xi’s speech endorsed the trade optimism as he indicated that he sees negotiations as the right way to solve disputes,” said Gai Xinzhe, a senior analyst at Sino-Ocean Capital in Beijing. But Xi also warned against “intellectual blockages” and “the widening technology gap,” highlighting China’s worry over the technology decoupling some U.S. politicians are advocating, he said. However, Chinese negotiators “continue to chip away at the wall of U.S. tariffs imposed on their exports since last year,” Bloomberg said. They are wary of conceding too much for fear of a political backlash at home, the report noted. Negotiators asked the Trump administration to eliminate tariffs on about $110 billion in goods that were imposed in September and lower the 25% tariff rate on about $250 billion that began in 2018, Bloomberg said. China has also previously demanded that the U.S. administration cancel plans to impose duties on roughly $160 billion in imports, scheduled for Dec. 15, which would hit consumer favorites like smart-phones and laptops. At the very least, those tariffs have to be taken off the table for Xi to get on a plane to meet Trump, Bloomberg said. The prospective deal for agreement this month would not address most of the major structural complaints that the U.S. has made, with thornier topics like state industrial subsidies or intellectual property theft left for later rounds, according to U.S. Commerce Secretary Wilbur Ross. Speaking in Bangkok Tuesday, Ross said he was “hopeful that phase one will be precursor for a much more robust set of agreements. I’m reasonably optimistic we can get something done,” he said. So, we will see. Clearly, plenty of potential for breakdowns in the talks remain — but also optimists seem to be finding a good bit to talk about. These are debates producers should follow very closely as they proceed, Washington Insider believes.
| Rural Advocate News | Wednesday November 6, 2019 |
US-China Said To Be Mulling Rollback of Tariffs In Quest For Phase One Trade Deal The U.S. is debating whether to roll back tariffs deployed on around $112 billion of Chinese imports, according to the Financial Times, with the Wall Street Journal reporting that both countries are considering tariff reductions as they work finalizing Phase One of the trade deal. The initial focus was on the U.S. not imposing tariffs on Chinese goods on December 15, but the reports now suggest that duties put in place by the U.S. on September 1 may also be in play. Should the U.S. agree to do more than just not impose tariffs on December 15, the Financial Times said the U.S. would likely seek something in response from China, “including beefed up provisions on the protection of intellectual property for U.S. companies, greater certainty on the scale of Chinese purchases of U.S. farm products, and a signing ceremony for the agreement on American soil.” There has been no confirmation of the tariff discussions from the Chinese side. "Trade consultations have made progress and are advancing in accordance to plan," Chinese Foreign Ministry spokesman Geng Shuang told reporters in a briefing. Asked about the tariff situation, Geng said he could only speak in “principle” on the topic. “Adding tariffs is not the correct way to resolve trade issues,” he observed.
| Rural Advocate News | Wednesday November 6, 2019 |
House Ag Panel Chair Urges Changes to USDA Trade Aid Efforts House Ag Committee Chairman Collin Peterson, D-Minn., is asking USDA to address several issues with the latest Market Facilitation Program (MFP 2) trade mitigation package, including crops that are not eligible for aid and the formula for determining payments to dairy producers. That follows questions raised by dairy farmers as to why their payments are based on historical – and not actual – production. “The current program has created winners and losers among neighbors who find themselves facing the same market situations, meaning that some producers may remain viable while others may be forced out of business,” Peterson said in a letter to USDA Secretary Sonny Perdue. He also pointed out that the MFP 2 payments do not account for “the impact on basis that have resulted from disruptions in trade flows.” He called on Perdue to “strongly consider rectifying these situations as you contemplate the next rounds of assistance under the MFP program.”
| Rural Advocate News | Wednesday November 6, 2019 |
Wednesday Watch List Markets The U.S. Labor Department releases a monthly report on U.S. productivity at 7:30 a.m. CST, followed by the Energy Department's weekly report of energy inventories at 9:30 a.m. Weather forecasts for both, North and South America remain important as do any developments on the trade front. Weather Snow north and some light rain south will slow harvest progress in parts of the Midwest region Wednesday. Rain and thunderstorms through Oklahoma and north Texas Wednesday and Wednesday night will recharge soil moisture for winter wheat. Pre-winter development will continue, although slowed at times of low or very low temperatures during the coming days. Drier elsewhere in the central Plains wheat areas Wednesday. Cold, dry conditions will favor late harvests in the Northern Plains.
| Rural Advocate News | Tuesday November 5, 2019 |
Washington Insider: President and Fed Continue Monetary Policy Fight There is a modest amount of optimism about a possible U.S.-China trade deal just now, in spite of the usual comments about making sure the agreement treats both sides fairly, among other things. However, there is overall policy friction over the President’s unhappiness about monetary policy. The Fed is taking pains to say that it is pretty well satisfied with the current key rates even though President Trump isn’t. In a series of appearances last week, central bank officials hammered home the message that policy is “on hold” after three cuts in interest rates this year. “We have a favorable outlook for the economy,” Fed Vice Chairman Richard Clarida told Bloomberg on Friday. “We think the economy is in a good place, we think monetary policy is in a good place.” Bloomberg argues that “faced with an election a year from now, Trump certainly wouldn’t disagree with the former assessment — and, he hailed “a blowout jobs number” following the report that payrolls grew by a bigger-than-expected 128,000 in October in spite of the since-ended General Motors Co. strike. But that doesn’t mean that he’s happy with the job being done by Fed Chairman Jerome Powell and his colleagues, Bloomberg thinks. “People are VERY disappointed in Jay Powell and the Federal Reserve,” Trump tweeted last week after the central bank lowered rates by a quarter percentage point. “The Fed has called it wrong from the beginning, too fast, too slow.” Trump economic adviser Larry Kudlow was more restrained. “Monetary policy fortunately has finally turned around,” said Kudlow, who is director of the White House’s National Economic Council. “We’ve gone from extreme tightness to a somewhat more accommodative position.” After raising rates four times in 2018, the Fed has reduced them this year to shelter the economy from slowing growth overseas and uncertainties stemming from Trump’s trade policies, particularly with regard to China. Fed Vice Chairman for Supervision Randal Quarles commented last week that the current stance of monetary policy was “likely to remain appropriate” as long as the economy grows moderately, the jobs market stays strong and inflation is near the Fed’s 2% goal. Economists at JPMorgan Chase & Co. and Deutsche Bank AG were among those who declared last week that the Fed is now on hold. But moderate growth — generally seen by economists as equivalent to about 2% — might not be enough for an administration that has promised increases of 3% or more. After heating up last year in response to the administration’s tax cuts, the economy has cooled in 2019 as trade tensions and sluggish global growth have dampened business confidence. Since Trump took office in January 2017, gross domestic product has risen at an average annual clip of 2.6%, a bit faster than the 2.4% rate in President Barack Obama’s second term, Bloomberg said. Speaking Friday in Washington, San Francisco Fed President Mary Daly affirmed the central bank’s independence. “We don’t think about politics,” she told students at Howard University. Morgan Stanley Chief U.S. Economist Ellen Zentner defended the central bank against Trump’s attacks. “If their job is to extend the expansion for as long as possible, it also includes not allowing the economy to overheat, which can stop expansions short,” she told Bloomberg. Fed policy makers generally played up the performance of the U.S. economy and the jobs market in separate appearances last week. “The economy is strong,” New York Fed President John Williams declared at Rutgers University in New Jersey. He said he sees “people who’ve been out of the labor force for maybe years, or much of their life, now getting job training, getting back into the labor force.” Dallas Fed President Robert Kaplan agreed with that upbeat assessment, telling reporters in Houston that the U.S. was “at or past full employment.” At 3.6% in October, the jobless rate is hovering near a 50-year low and is below the 4.2% rate that Fed officials reckon is sustainable in the long-run, according to the median projection of policy makers released in September. Kaplan said the Fed had acted in “a modest, restrained and limited way” to support the economy by cutting rates this year. “We want to give it some time to work through the economy and to see how events unfold,” he said, adding, “I’d want to be patient here, at this point.” That approach isn’t seconded by the President, as his tweet last week attacking the Fed made clear. So, we will see. There are many uncertainties that could affect both domestic and foreign markets — and while inflation is not one of them, at least, not at the moment, that could be a modestly strong talking point for the administration as long as a reasonable likelihood remains for significant easing of the trade tensions with China and as long as global market tensions do not intensify. These are all key issues that should be watched closely by producers as the season advances, Washington Insider believes.
| Rural Advocate News | Tuesday November 5, 2019 |
Farmer Borrowing Costs Down Commodity loans disbursed in November by the Commodity Credit Corporation (CCC) will have a 2.625% interest rate, down from 2.750% in October. This marks the fifth straight month that the interest rate on commodity loans has declined. The interest rate in effect for November is a full percentage point below the level in place in November 2018 when it was 3.625%. This means lower borrowing costs for farmers opting to utilize the nonrecourse marketing assistance loan (MAL) program for their 2019 production. In USDA’s August farm income update, they noted that interest rates were a key farm expense area that had risen.
| Rural Advocate News | Tuesday November 5, 2019 |
Positive Views Continue On US-China Trade Front Commerce Secretary Wilbur Ross said he is optimistic the U.S. would reach a “Phase One” trade deal with China this month and said licenses would be coming “very shortly” for American companies to sell components to Huawei Technologies, adding that the government received 260 requests. “You will not have a deal on anything until you have a deal on everything,” Ross told the Financial Times in Bangkok. “But we are quite optimistic that the remaining issues for the phase one can be closed out.” China also gave a positive readout on the situation. U.S. and Chinese trade officials were able to reach a “consensus on principles,” according to a statement released Friday by China’s Commerce Department. The negotiators moved on to begin discussing Phase Two, the Chinese said. As for a location for a signing of the agreement, Ross said Iowa, Alaska, Hawaii and locations in China are all possible places for President Donald Trump and Chinese President Xi Jinping to sign the deal after the cancellation of this month’s Asia-Pacific Economic Cooperation (APEC) summit in Chile due to unrest in the country. President Trump also mentioned the possibility of Iowa for the meeting in remarks on Friday — Trump reportedly wants to make sure the signing takes place in the U.S.
| Rural Advocate News | Tuesday November 5, 2019 |
Tuesday Watch List Markets The U.S. Census Bureau releases the U.S. trade deficit for September at 7:30 a.m CST, Tuesday's only official report. Later in the morning, USDA will take the Census Bureau report and release export data for various ag products. Otherwise, traders remain interested in weather forecasts for both, North and South America and any new trade comments concerning China. Weather Mostly dry conditions for harvest will be noted Tuesday. Precipitation will be confined to light snow in the far Northern Plains and light rain in the southeastern Midwest. Temperatures will again be below to much below normal.
| Rural Advocate News | Tuesday November 5, 2019 |
Ross Optimistic U.S. Will Reach Phase One Agreement with China Commerce Secretary Wilbur Ross seems confident the U.S. and China will reach a “phase one” agreement this month on trade. Speaking at the Association of Southeast Asian Nations, Ross says the U.S. and China are “making good process,” according to Bloomberg News. He added that Iowa, Alaska, Hawaii and locations in China were all possible places for Trump and Xi Jinping to sign the deal after Chile canceled the Asia-Pacific Economic Cooperation summit. The two leaders were expected to sign the agreement during the event in Chile later this month. President Donald Trump told reporters that if an agreement is reached, it would be signed somewhere in the United States. China Monday offered little comment regarding a location to sign the agreement, only to say the U.S. and China are in constant communication. Meanwhile, Ross wouldn’t say whether the U.S. would halt new tariffs on China planned in December. China has asked the U.S. to suspend the December round of tariffs, as a condition of signing the phase one agreement. ************************************************************************************* Pence Presses House Democrats to Hold USMCA Vote Vice President Mike Pence again called on the House of Representatives to bring the U.S.-Mexico-Canada Agreement to a vote. Speaking at an event in Virginia over the weekend, Pence says Democrats in the House “are spending all their time on endless investigations and a partisan impeachment.” Pence told the event, “The time has come for your congressmen and every Democrat from Virginia to put politics aside and pass USMCA.” House Democrats maintain the impeachment process will not impede progress on the trade agreement. House Speaker Nancy Pelosi last week hinted she was optimistic they could reach a deal with the White House. Few days remain on the legislative calendar to pass the agreement this year, and the House is on recess this week. Pelosi told reporters last week, “hopefully we can do it sooner,” but she wouldn’t rule out the process stretching into next year. The U.S., Canada and Mexico agreed to the accord now more than a year ago, and Mexico ratified the agreement this summer. ************************************************************************************* Trump Names FDA Commissioner Nominee President Donald Trump’s nominee to head the Food and Drug Administration offers a bolstered resume in the medical field. Trump recently announced Stephen Hahn of Texas as the nominee to be the next FDA Commissioner. Hahn has been Chief Medical Executive at The University of Texas MD Anderson Cancer Center in Houston, Texas, since May of 2018. MDACC is a research-driven patient care organization that has approximately 21,000 employees with an annual revenue of $5 billion and the largest number of clinical trials in the United States. As a radiation oncologist, Dr. Hahn specializes in treating lung cancer and sarcoma. Politico reports Hahn offers a sharp contrast from former FDA chief Scott Gottlieb, as Hahn’s last government job was in the 1990s, while Gotleib had a wealth of federal experience when nominated. The nomination passes over acting commissioner Ned Sharpless, who is the former head of the National Cancer Institute. Hahn must be confirmed by the Senate. ************************************************************************************* Bill Would Create New USDA Agency Focused on Supporting Innovation Legislation introduced Monday would create a new research agency in the Department of Agriculture. Introduced by Senator Michael Bennet, a Colorado Democrat, and Representative Cindy Axne, an Iowa Democrat, the legislation would create the Advanced Research Projects Agency–Terra (Latin for land) to invest in innovative technologies that increase economic opportunity for farmers. ARPA–Terra would provide competitive funding to land-grant universities for early stage research on technologies that industry might not undertake due to the long-term and high-risk technological barriers that exist. The agency will enable the United States to develop technologies – and put them in the hands of farmers to enhance export competitiveness, environmental sustainability, and crop resilience to extreme weather. Axne says the bill “will help our researchers continue to lead the way in Agriculture science and development.” Bennet says the legislation will “strengthen American global leadership in agricultural research and development.” The lawmakers point out that the legislation is supported by the American Farm Bureau Federation. ************************************************************************************* USDA Broadband Investments Continue Continuing support for rural broadband, the Department of Agriculture Monday announced a $3.8 million broadband investment in Virginia. The announcement creates and improves high-speed broadband connections to more than 1,250 rural homes in Virginia as part of the new ReConnect Pilot Program investments. DJ LaVoy, deputy undersecretary for rural development, says the USDA mission of increasing rural prosperity “cannot be achieved without addressing the digital divide rural communities face.” In March of 2018, Congress provided $600 million to USDA to expand broadband infrastructure and services in rural America. Agriculture Secretary Sonny Perdue announced the ReConnect program in December, and started receiving applications in May of this year. USDA received 146 applications requesting $1.4 billion in funding across all three ReConnect Program funding products, a 100 percent loan, 100 percent grant, and loan-grant combinations. USDA is reviewing applications and announcing approved projects on a rolling basis. Additional investments will be announced in the coming weeks. ************************************************************************************* Iowa Signs Propane Delivery Relief Emergency Proclamation Propane delivery issues prompted Iowa’s Governor to sign an emergency proclamation last week. The Emergency Executive Order signed by Governor Kim Reynolds will help “help resolve delivery challenges resulting from increased seasonal propane demands,” according to the Iowa Department of Agriculture. The proclamation exempts drivers of commercial motor vehicles delivering propane from the hours of service requirements during November. Iowa Agriculture Secretary Mike Naig says a late harvest and wet weather has left farmers with higher-than-normal moisture levels in their corn. The propane industry states there is propane available in the Midwest, but there are transportation and pipeline capacity limitations that are creating logistical challenges. The Iowa Department of Agriculture is working with the Iowa Propane Gas Association to monitor the situation and explore options to expedite the delivery of propane to homes, farms and businesses. The industry is tracking potential interruptions to rail or pipeline distribution lines and working with those industries to help facilitate the movement of propane during peak demand periods.
| Rural Advocate News | Monday November 4, 2019 |
Washington Insider: Happy Talk and Reality There is quite a bit of talk around about the outlook for the economy these days, Bloomberg is reporting this week. President Trump has been saying that “a robust economy will protect him from impeachment and ensure his re-election.” However, Bloomberg says that argument rests “on a shaky foundation,” and goes on to explain. It says that the middle-class Americans who are the main targets of the President’s economic pitch “aren’t sharing much in the gains of U.S. growth.” Worse yet for the administration wage growth has been slower in the counties the president carried in 2016.” By several measures, middle-class Americans’ incomes have risen more slowly in recent months than during Barack Obama’s final years, which were “hardly a period renowned for gangbuster pay increases.” Workers should finally be getting big raises with the unemployment rate down to 3.5%. Yet while wage growth picked up last year, it is still subdued and slowing again after manufacturing output contracted in the first half of the year, Bloomberg said. The economy’s overall performance hasn’t changed much since Trump took office, with GDP growth averaging 2.6% versus 2.4% during Obama’s second term, far below the president’s own forecasts, Bloomberg says. On Wednesday, the Commerce Department reported the economy expanded 1.9% at an annualized rate in the third quarter, a level that when Obama was president Trump derided as a sign the “economy is in deep trouble.” While the jobless rate continued to fall during the president’s first two years, median household income, adjusted for inflation, grew at an average annual rate of 1.3% – down from a 4.1% annual rate the previous two years and a 1.8% annual rate during Obama’s entire second term, Bloomberg said. Asked about the income and wage data, White House spokesman Judd Deere argued that Trump’s “policies of lower taxes, deregulation, and fair and reciprocal trade have supported the longest economic recovery in U.S. history with record low unemployment and rising wages.” However, Bloomberg noted that there are numerous measures of workers’ wages that show tepid growth under the current administration despite a roaring stock market, surging corporate profits and a $1.5 trillion deficit-financed tax cut that is often promoted as a way to rev up pay gains. Nevertheless, in counties Trump won in 2016, growth in real average weekly earnings slowed to a 1.2% annual rate under his presidency, down from 1.5% the prior two years, Bloomberg said. In the presidential battlegrounds of Wisconsin, Michigan and Pennsylvania the drop-off has been sharper with weekly earnings in counties he carried up 0.8% annually versus 1.8% the previous two years. The “manufacturing recession” threatens to further weaken pay growth in those states, where 1 in 6 workers hold factory jobs, Bloomberg says. The president often claims that wage gains have picked up since he took office. But with inflation factored in, overall progress on wages doesn’t look much different. Real average hourly earnings under President Trump have grown at an average annual rate of 1.1% through September versus 1% during Obama’s second term. Workers in the middle fared worse. The median weekly paychecks for full-time workers, adjusted for inflation, have grown at an average annual rate of 1% through September versus 1.5% during Obama’s second term. A measure created to minimize potential distortions from more low-wage workers entering the workforce also shows slower pay growth under the current administration. The Atlanta Federal Reserve Bank’s national wage growth tracker is based on surveying the same workers 12 months apart on their pay and calculating their median raise. Adjusted for inflation, the index increased at an average annual rate of 1.3% during the past two years versus 1.7% during Obama’s second term. And, there is considerable diversity among groups, Bloomberg says. Real median earnings for high-school educated men – a key Trump constituency – rose at a 1.2% average annual rate during the administration’s first two years, up from a 0.4% rate the prior two years. Conversely, high-school educated women’s real median earnings declined at a 1.1% annual rate under this administration versus a 0.6% rise during Obama’s final two years. High-school-educated men still haven’t caught up to their pay in 2000. Their $45,459 median earnings in 2018 was $2,128 lower than their counterparts at the turn of the century. High-school-educated women are further behind, with 2018 median earnings of $32,412, down $2,356. Weak pay increases contribute to “ambiguous feelings” about the economy even as unemployment remains at historic lows, said Alan Abramowitz, a political science professor at Emory University who studies public opinion and presidential election forecasting. “What matters politically is the subjective economy, how people feel about the economy,” Abramowitz said. “Real incomes aren’t rising that much, so it’s not obvious that things are that good.” So, we will see. Much depends on the current medium-term economic policy trends and trade developments. Clearly, the administration intends to lean heavily on the “economic growth and prosperity arguments,” but whether these prove persuasive remains to be seen – and should be watched closely by producers in the coming months, Washington Insider believes.
| Rural Advocate News | Monday November 4, 2019 |
Mexico, US Officials More Upbeat On USMCA Mexico’s North American negotiator Jesus Seade, after talking with House Speaker Nancy Pelosi, D-Calif., and U.S. Trade Representative Robert Lighthizer said he is optimistic the White House and lawmakers can reach an agreement on the U.S.-Mexico-Canada Agreement (USMCA) before Thanksgiving. Seade was basing his outlook on conversations this week with the two officials. Seade stressed that any changes agreed to between Lighthizer and Democrats is really a “proposal of sorts” because it will require a stamp of approval from Mexico and Canada. But Seade said he is optimistic the changes will be acceptable to Mexico — which would allow for Mexico City to approve the changes “in a few days,” clearing the path for Congress to vote on USMCA ratification before the end of the year. But if not, Mexico could be forced to get back into negotiations with the U.S. and offer counterproposals, he said. Pelosi on Thursday said she will allow a vote in return for concessions on labor and enforcement provisions. Pelosi said talks between congressional Democrats and Trump administration officials over changes to the pact with Canada and Mexico were in the “last mile,” and she was optimistic that an agreement could be reached. “If we can come to terms, [which] I think we are close to doing, this will be a template for future trade agreements,” Pelosi said. This continues to match our expectation that a vote in the U.S. House remains likely yet this year.
| Rural Advocate News | Monday November 4, 2019 |
US, China Looking For New Spot for Phase One Deal Signing The U.S. and China are continuing their work on finalizing a Phase One trade deal, with China’s Ministry of Commerce saying Thursday the two sides are continuing their bilateral negotiations according to plan and that the talks are progressing well. They said the two sides are still in close communication and that top-level discussions would take place Friday. President Donald Trump tweeted Thursday morning, “China and the USA are working on selecting a new site for signing of Phase One of Trade Agreement, about 60 percent of total deal, after APEC in Chile was canceled due to unrelated circumstances,” Trump said. “The new location will be announced soon. President Xi and President Trump will do signing!” Trump on Friday floated the idea of signing the deal in Iowa. "I want to get the deal done first," Trump told reporters. "But we're thinking about Iowa. You know why? Because it would be the largest order in history for farmers. ... It's a possibility." However, Chinese Foreign Ministry spokesman Geng Shuang dismissed reports that China had suggested Macau as a possible signing location as purely speculation. As for the Phase One deal, Commerce Secretary Wilbur Ross told Fox Business Network that the U.S. is pretty comfortable that the Phase One deal is in good shape and that the U.S. hopes it can be signed around the same timeframe as the cancelled APEC meeting. Meanwhile, China’s Ministry of Justice published a draft rule Friday that would allow foreign-funded firms to make stock and bond issuances in China and overseas and would let foreign investors in China repatriate profits. The draft rule is aimed at facilitating a foreign investment law that would take effect January 1, 2020.
| Rural Advocate News | Monday November 4, 2019 |
Monday Watch List Markets The latest weather forecasts will get a look early Monday with many hoping for more favorable harvest weather this week. U.S. factory orders will be reported at 9 a.m. CST, followed by weekly grain export inspections at 10 a.m. and Crop Progress at 3 p.m. CST. Any trade news pertaining to China also gets attention. Weather Snow will cross the Northern Plains Monday, disrupting harvest. Drier conditions elsewhere will allow progress. Conditions will be cool to cold north and warm south.
| Rural Advocate News | Saturday November 2, 2019 |
Beijing Considers Axing Extra Tariffs on U.S. Ag Products to Boost Imports The head of a government-sponsored trade association in China says Beijing could remove extra tariffs on U.S. farm goods to smooth the way for importers to potentially buy up to $50 billion in products. A Reuters article says Beijing would make that move instead of directing importers to purchase specific amounts of goods. President Donald Trump said earlier in October that China would be buying anywhere between $40 and $50 billion worth of agricultural goods as part of a “Phase One” deal to pave the way for an end to the trade war that broke out in 2018. However, that number has become problematic as China wants to purchase U.S. ag products based on market conditions, rather than commit to a specific number. The President of the China Chamber of Commerce for Import and Exports of Foodstuffs says, “What the government can do is remove the extra tariffs, which both sides need to do. Then, let the companies make purchases based on their own will and market rules.” The chamber president says that would create conditions for a “convenient” and “good” trade environment, rather than creating obligations for firms to buy a certain amount of product during a certain time. While China can step up purchases based on market conditions, $40 to $50 billion is “very high.” ********************************************************************************************** Thailand Wants Talks on Loss of Trade Privileges with the U.S. Thailand will be looking to start talks with the United States about its decision to end preferential privileges of a large number of exports from Thailand. A New York Daily News article says the acting director-general of the Thailand Commerce Ministry’s Foreign Trade Department says his office had been warning exporters about the potential loss of duty-free access on multiple exports. The Office of the U.S. Trade Representative announced on Friday that it was suspending $1.3 billion in trade preferences for Thailand under the Generalized System of Preferences for its failure to adequately protect worker rights. Thailand wants to initiate talks with the U.S. before the move takes effect in April. Thailand has faced complaints for years over multiple labor issues, especially in its fisheries industry. The U.S. announcement about the revocation says, “Despite six years of engagement, Thailand has yet to take steps to provide internationally recognized worker rights in many important areas identified in a 2015 petition from the AFL-CIO.” The U.S. move drew special attention because it came soon after Thailand had announced a ban on glyphosate. However, both U.S. and Thai officials denied any connection. ********************************************************************************************** NCBA Announces Campaign to Promote its Beef Quality Assurance Program About 85 percent of U.S. beef comes from farmers and ranchers who are certified in the Beef Quality Assurance Program. However, do consumers know what that means? A new campaign from the National Cattlemen’s Beef Association aims to answer that question for consumers. The goal is to close the gap between consumer knowledge and what the country’s producers are doing to produce high-quality beef in a humane and environmentally friendly way. Consumers are also more interested than ever before about how their food is produced. The new campaign began last month with a series of videos from “Beef, It’s What’s for Dinner.” The videos highlight how cattle farmers and ranchers raise their cattle under BQA specifications. The videos, as well as corresponding audio clips, will be used to advertise BQA on platforms like YouTube, Hulu, Pandora, and Spotify. Consumers will also get to learn more through interactive “BQ&A” Instagram stories that address common questions about how cattle are raised. The videos, website, and social interactions with consumers give them an overview of what the BQA program is and the ongoing commitment of cattle farmers and ranchers to care for their animals and provide the safest and highest quality beef possible. “The campaign expands the reach of a traditionally producer-facing program,” says Josh White, executive director of producer education at NCBA. U.S. beef producers who have embraced the BQA program are excited that the program is now a “consumer-facing” effort as well. ********************************************************************************************* USDA Finds New Site in Kansas City for ERS, NIFA Ag Secretary Sonny Perdue announced that the USDA officially signed a lease on office space in Kansas City, Missouri. The Hagstrom Report says it’s now the new place of work for most of the employees of the USDA’s Economic Research Service and the National Institute of Food and Agriculture. It’s at 805 Pennsylvania Avenue right in downtown Kansas City. Employees of both agencies who made the move out of Washington, D.C., had been working in another USDA facility. “We’re excited to announce ERS and NIFA’s new, permanent home in downtown Kansas City,” says Perdue. “It provides clarity on commute times and work-life balance for our employees. Both agencies have been working at the Beacon Center after relocating to the region over a month ago.” Perdue says signing the lease is an important next step to maximizing the efficiency, effectiveness, and customer service over the long-term. In a separate statement, USDA also says 90 percent of USDA employees are located outside of the DC area. Before their relocation, ERS and NIFA were the only USDA agencies that didn’t have any representation outside of the nation’s capital. Out of 329 ERS positions, 76 remain in DC. Out of a total of 344 NIFA positions, just 21 remain located in Washington, D.C. ********************************************************************************************** World Wheat Crop Experiencing Mixed Planting Conditions Drought conditions in the southern U.S. plains continue to be a growing concern for winter wheat producers. The southern plains are the top winter wheat producing region in the country. Extra precipitation helped to boost yields and harvests this year, even though growers planted fewer acres than in previous growing seasons. A return to the more typical arid conditions may put some limit on crop potential come harvest time in 2020. However, other countries that grow a lot of wheat are also having some concerns. Growers in Great Britain are hoping for dry weather to help pick up the pace in planting throughout rain-soaked farm fields. Growers in Ukraine, a major wheat-producing competitor of the U.S. need a good rainfall on their newly planted fields before settling in for the winter. As the planting period is mostly coming to an end in the northern hemisphere, places like France and Germany have seen higher-than-normal rainfall over the past month. That’s not only slowed the harvest of summer crops, but it’s also planting of winter wheat behind schedule. Russia is the world’s top winter wheat exporter and may plant a record amount of the crop this year. Favorable temps and near-normal moisture have made it possible for Russian producers to plant in an ideal timeframe. ********************************************************************************************** Montana Senator Introduces Resolution to Restart COOL Senator Jon Tester of Montana introduced a resolution in support of the reestablishment of Country of Origin Labeling. The COOL resolution puts forth a firm statement of support for the program, which was repealed back in 2015. The introduction follows months of coordination and collaboration by Tester, who’s been pulling together consumer and producer stakeholders to push the labeling solution forward. U.S. Cattlemen’s Association Director Emeritus Leo McDonnell says pushing the resolution forward could ultimately benefit consumers at their local grocery stores. “Consumers are increasingly seeking out more information on the products they choose to feed their families,” he says. “The U.S. produces the highest quality, safest, and most eco-conscious beef in the world. U.S. cattle producers deserve the opportunity to showcase their product in the retail marketplace.” The group thanks Senator Tester for championing their Truth in Labeling efforts through the introduction of the resolution. “We’re asking other Senators to follow his lead and stand with American consumers and ranching families,” McDonnell says.
| Rural Advocate News | Friday November 1, 2019 |
Cancelation of APEC Meeting Doesn’t Change China Trade Talks Chile’s cancellation of the November APEC summit shouldn’t change the outlook for trade talks with China. Planned for November 16 and 17, Chile canceled the Asia-Pacific Economic Cooperation summit to focus on restoring law and order in the country, according to Reuters. President Donald Trump and Chinse President Xi Jinping (Shee Jihn’-ping) were set to sign a so-called phase one agreement along the sidelines of the event. However, President Trump Thursday said China and the U.S. were working on selecting a new site for signing the agreement, add the new location would be announced soon. A Chinese Foreign Affairs Ministry spokesperson downplayed any concern, adding the U.S. and China remain in constant communication in working towards signing the agreement. Trump says the phase one agreement includes roughly 60 percent of the total deal sought by the United States. The agreement also covers $40-50 billion of U.S. agricultural exports to China over the next two years. ************************************************************************************* Farm Bankruptcies up 24 Percent Since Trade War Start Farm bankruptcies are at the highest level seen since 2011. Data compiled by the American Farm Bureau Federation shows farm bankruptcies surged 24 percent since the trade with China began. For the 12-month period ending September 2019, Chapter 12 farm bankruptcies totaled 580 filings, the highest level since 676 filings in 2011. AFBF Chief Economist John Newton points out that bankruptcy filings over the last 12 months were the highest in Wisconsin at 48 filings, followed by 37 filings in Georgia, Nebraska and Kansas. Iowa, Kansas, Maryland, Minnesota, Nebraska, New Hampshire, South Dakota, Wisconsin and West Virginia all experienced Chapter 12 bankruptcy filings at or above 10-year highs. USDA currently projects farm income in 2019 to reach $88 billion, the highest net farm income since 2014’s $92 billion, but still 29 percent below 2013’s record high. Nearly 40 percent of that income, roughly $33 billion, is related to trade and disaster assistance, along with crop insurance programs. ************************************************************************************* South Dakota Senators Introduce Beef Integrity Act Senators Mike Rounds and John Thune this week took steps to keep beef born, raised and slaughtered in foreign countries from receiving a “Product of the U.S.A.” label. The South Dakota republicans say the U.S. Beef Integrity Act would make certain that the “Product of the U.S.A.” label only goes to beef and beef products exclusively derived from animals born, raised and slaughtered in the United States. Currently, the Food Safety and Inspection Service does not require that beef be born, raised and slaughtered in the U.S. in order to carry a “Product of the U.S.A.” label. The U.S. Cattlemen’s Association says the legislation would “immediately close the loophole,” and allow for a continued push towards establishing of a country-of-origin labeling program. However, the National Cattlemen’s Association says, “In general, NCBA members are opposed to requesting additional government regulation on our industry." The organization recently formed a working group to gather information regarding labeling practices to "fully understand the scope of the issue" and seek solutions. ************************************************************************************* USDA Announces NIFA, ERS, Office Location in Kansas City The Department of Agriculture this week announced the signing of a lease for office space in downtown Kansas City, Missouri. 805 Pennsylvania Avenue will be home to the National Institute of Food and Agriculture, and the Economic Research Service. The lease is part of USDA's effort to move the two agencies out of the Washington, D.C., area, for alleged cost savings and to put the agencies closer to their customers. The criticized effort moves roughly 600 jobs to Kansas City, with several job openings as many USDA employees of the two agencies opted to seek employment elsewhere, rather than relocate. The Kansas City metro, split by the Kansas-Missouri border, has faced an economic border war for years. While the two states have worked towards a so-called truce regarding economic incentives to lure employers, Kansas City and Port KC, a political subdivision of the State of Missouri, offered $26 million worth of incentives to support the relocation. Missouri Governor Mike Parson says the USDA location will “benefit both Missouri and Kansas for years to come.” ************************************************************************************* Women in Ag Survey Reveals Business Acumen and Leadership Women are active advocates for agriculture and successful business owners interested in filling leadership roles, according to a new Farm Bureau survey. A majority of those surveyed, 91 percent, also believe there should be more women in leadership roles in the industry. More than 3,000 women completed the informal survey online, which AFBF conducted to determine the goals and achievements of women in agriculture. Sherry Saylor, chair of Farm Bureau's Women's Leadership Committee, says, "We hope to use the survey results to drive our program of work and also to give women their voice and help them make even more of an impact in their communities." More than 50 percent of women surveyed have started their own business that's still in operation, 25 percent have not started a business but indicated they would like to do so in the future. Respondents cited prioritizing and finding time to accomplish tasks, acquiring financial support and marketing plan development as their top business challenges. Full survey results are available online at fb.org/women. ************************************************************************************* Increased Demand for Dark Chicken Meat Creating Market Opportunities Evolving U.S. demographics are shifting consumer preferences from white meat chicken to dark meat, according to new research by CoBank. Since 2000, chicken breast's share of the value of the bird has dropped from 66 percent to just 45 percent, while the value of chicken legs has increased dark meat's share from 12 percent to near 30 percent. The report says the change presents the chicken industry with an opportunity to diversify its profit centers. Advances in mechanical deboning technology have allowed U.S. chicken producers to capture the emerging demand for dark meat while addressing the ever-present labor shortage, according to CoBank. Age and ethnicity are behind the change. Millennials are projected to surpass Baby Boomers in 2019 as the largest living adult generation in the U.S. As Baby Boomers age, their consumption of meat, including white chicken meat, is declining. Latino and Asian populations are growing in the U.S. and dark meat chicken, rather than white meat, is typically used in the cuisines of their cultures.
| Rural Advocate News | Friday November 1, 2019 |
Washington Insider: FY 2020 Spending Progress Slow The Senate on Thursday cleared a “minibus” spending package that covered $214 billion in government spending for Fiscal Year (FY) 2020 (HR 3055) which melded the Agriculture (S 2522), Commerce-Justice-Science (S 2584), Interior-Environment (S 2580) and Transportation-HUD (S 2520) spending bills. But, as CQ Roll Call reports, “But further progress isn't guaranteed.” That view comes as a procedural vote on a second “minibus” package (HR 2740) would fund the Defense (S 2474) and Labor-HHS-Education measures. The procedural vote, which needed 60 votes to be approved, was rejected. The issue, not surprisingly, Democrat objections on the border wall. “Democratic objections to funding levels and disagreement over when and how the Trump administration should be able to divert Pentagon funding for the border wall doomed the cloture motion to proceed to debate,” CQ Roll Call said. However, Senate Majority Leader Mitch McConnell, R-Ky., blamed the impeachment situation for the Democratic opposition to moving ahead on the spending plan. "I'd hoped our Democratic friends would be able to put impeachment aside, at least, long enough to fund the Department of Defense," McConnell said. Senate Minority Leader Chuck Schumer, D-N.Y., did not cite the impeachment situation in his remarks on package. "A bill that is supposed to provide resources for our troops and their families actually steals money from them and puts it toward a border wall that President Trump promised Mexico would pay for," Schumer stated. But the wall is not the only component that is a stumbling block. There are significant differences between the House and Senate over topline spending numbers even after the budget accord reached in July that set overall spending amounts. "The only thing that will move the appropriations process forward is agreement on allocations, a step which will require Senate Republicans to drop their demands to fund a border wall by cutting education," said House Appropriations Committee spokesman Evan Hollander. This now keeps the spending situation more uncertain than it has been. Currently, the government is operating on a continuing resolution (CR) that is in place through November 21. But the fact the Senate has not moved ahead on most of the spending plans, odds are rising even higher that another CR will be needed to keep the government from shutting down just ahead of Thanksgiving. Some favor just a short-term extension of spending, while others want any temporary government funding plan to keep the government open into 2020. Given that lack of agreement, getting even a temporary funding plan in place could prove to be a challenge. There are also precious few legislative days that both chambers will be in session this month, with a break for Thanksgiving at the end of the month. Some also fret that if the government were to shut down, that could imperil the Market Facilitation Program (MFP) 2 payments that have been flowing to farmers. The first installment of those payments has totaled over $6 billion and a decision is looming on making a second tranche of those payments this month. A chunk of U.S. farm income is coming from the government – $33 billion out of the estimated $88 billion in net farm income is expected to come from government payments of one form or another. So we will see. It appeared after the most-recent government shutdown, that all parties – the House, Senate and the administration – agreed that shutting down the government yielded no real benefits and produced only costs. Hopefully, that view will not have faded as November 21 draws closer and closer. Agriculture needs to closely monitor this situation as these issues outside of agriculture could impact spending for the agency responsible for dealing with farmers, Washington Insider believes.
| Rural Advocate News | Friday November 1, 2019 |
USDA’s Censky Downplays APEC Summit Situation Re: US-China Trade Deal The cancellation of the Asia-Pacific Economic Cooperation (APEC) summit in Chile prompted immediate speculation that the prospects for signing Phase One of a trade deal between the U.S. and China were suddenly dimmed or put into question. While addressing reporters via a teleconference from Ghana, USDA Deputy Secretary Steve Censky was asked about the situation. While acknowledging he was not in Washington and that the APEC development was new, “I will say that I do know that those discussions between the United States and China have been continuing this week to try and finalize that Phase One agreement.” Given that, Censky reasoned, “everything is still all systems go for the United States and China to keep working to finalize that Phase One trade agreement as quickly as possible. And of course, we had the goal of having it finalized by mid-November for the APEC summit in Chile.” “But I think the goal of having it finalized by mid-November still remains,” Censky concluded.
| Rural Advocate News | Friday November 1, 2019 |
Chile Cancellation of APEC Summit Sets Off Search for US-China Deal Signing Location Chile Wednesday cancelled the upcoming Asia-Pacific Economic Cooperation (APEC) summit where President Donald Trump and Chinese President Xi Jinping planned to meet and potentially sign Phase One of a trade accord between the two nations. The cancellation by Chile came as social unrest continued to rock Santiago. APEC officials indicated there were no plans to hold the meeting elsewhere, but Reuters reported that the U.S. was indicating a Trump/Xi meeting could take place in Alaska or Hawaii with China said to be suggesting Macau. Trump has also indicated he may want to travel to Australia for the Presidents Cup golf tournament that starts December 9, putting him in the region. Chinese diplomatic observers and government advisers said the APEC cancellation had eased the pressure on negotiators from China and the U.S. to finalize the Phase One portion of the trade deal. The Trump administration insisted it would continue to press to finalize Phase One of the accord in the coming weeks. “We look forward to finalizing Phase One of the historic trade deal with China within the same time frame, and when we have an announcement, we’ll let you know,” White House spokesman Hogan Gidley told news services.
| Rural Advocate News | Friday November 1, 2019 |
Friday Watch List Markets According to forecasts, Friday should mark the first day of a stretch of mostly dry weather across the entire Midwest, offering more favorable help for harvest. At 7:30 a.m. CDT, the U.S. Labor Department will release October nonfarm payrolls and the U.S. unemployment rate. An index of U.S. manufacturing follows at 9 a.m. USDA's monthly report of Fats and Oils caps off the week's reports at 2 p.m. CDT. Weather Light snow is in store for northern crop areas Friday. Dry conditions will be in place elsewhere. Harvest progress will remain slow due to Midwest rain and snow the past few days.
| Rural Advocate News | Thursday October 31, 2019 |
Chinese Ag Purchases Becoming a Sticking Point in Negotiations U.S. President Donald Trump has said China will commit to buying up to $50 billion in U.S. agricultural products as part of a Phase One trade agreement between the countries, However, Reuters says that amount is becoming a sticking point in the negotiations. That $50 billion is more than double the amount of U.S. ag commodities that China purchased during the year before the trade war began. People who’ve been briefed on the negotiations say that U.S. officials are continuing to push for that amount in talks, while Beijing doesn’t want to commit to purchasing that number of products in a certain time frame. China would like its buyers to be able to buy based on market conditions. An official of a Chinese state-owned company says China “doesn’t want to buy a lot of products that people here don’t need or something during a time when it’s not in demand. If a lot of U.S. products come into China all at once, the domestic market might not be able to digest them.” As an example, that same official points out that China wouldn’t be able to use large amounts of U.S. soybeans because of the African Swine Fever virus that’s decimated their herds. ********************************************************************************************** Biofuels Groups Ask EPA to Fix Flawed Proposal Growth Energy CEO Emily Skor testified on Wednesday before Environmental Protection Agency officials at a hearing on its proposed supplemental rule on 2020 biofuels targets under the Renewable Fuels Standard. Skor, whose organization represents more than half of U.S. ethanol producers, is asking the EPA to fix the flawed draft proposal and reverse the demand destruction that has shuttered biofuels plants across the country. “As drafted, EPA’s plan fails to accurately make up for lost gallons and betrays President Trump’s promise to rural America,” she said during testimony. “It cuts the fix we were promised in half, if not more, and destroys what may be our last chance to bring back the ethanol plants that have shut down and help to ease the burden facing American farmers.” The National Biodiesel Board also testified on Wednesday and said they appreciate the proposal to account for small refinery exemptions in the future. However, they pointed out that the EPA’s supplemental rule doesn’t do anything about small refinery exemptions before 2020. “Over four billion gallons of demand for biofuels has been lost due to small refinery exemptions from 2016 through 2018,” says David Cobb, NBB Federal Affairs Director. “The impact has been particularly significant for biomass-based diesel producers because biomass-based diesel can be used to satisfy multiple categories of fuel under the RFS.” ********************************************************************************************** Another Attempt to Fix Farm Labor Problems Introduced in Congress Representatives Zoe (ZOH-ee) Lofgren of California and Dan Newhouse of Washington introduced comprehensive legislation that attempts to overhaul the nation’s agricultural labor programs. Politico says the legislation will attempt to “thread the needle” between agriculture and labor groups that have long butted heads over the issue. The bill, called the Farm Workforce Modernization Act, would provide a way to legal status for undocumented farmworkers who’ve been working at least two years on their jobs and are planning to continue. The bill would also put into place a mandatory E-Verify system nationwide for farmers, something that would give conservatives incentive to support the bill. It will simplify the H-2A application process, cap wages for farmworkers, and it will raise funding for USDA programs that support housing for laborers. It also attempts to meet the needs of dairy farmers and others who need year-round labor. The bill offers 40,000 extra green cards for agricultural labor and creates a capped program to grant three-year visas for workers in certain sectors, including dairy. Politico says it’s the latest attempt to bring together labor and ag groups, as well as convince both Republicans and Democrats to pass major reform to the farm labor system. It’s something that has failed multiple times in the past. ********************************************************************************************* House Ag Committee Reauthorizes Commodity Futures Trading Commission The House Agriculture Committee passed legislation to reauthorize the Commodity Futures Trading Commission through 2025. H.R.Bill 4895 passed by voice vote on Wednesday morning. “The bill helps strengthen our financial market infrastructure and makes it more resilient,” says Ag Committee Chair Collin Peterson. “It also combats fraud and promotes cooperation among the regulators. What’s even more important to me is that it was put together in a bipartisan way that sends a strong message to the Senate.” Peterson says the people that look to U.S. markets for integrity don’t care about political wins and losses, but rather expect legislators to conduct the business of the committee. The bill includes system safeguard requirements for clearinghouses, trading platforms, and swap data repositories. It also clarifies provisions for relief in the event of broker bankruptcy. The bill adds whistleblower protections for employees of organizations that fall under CFTC jurisdiction, as well as enables further cooperation between the CFTC and international regulatory bodies. ********************************************************************************************** Agency Partnership Designed to Reduce Food Waste The U.S. Department of Agriculture, the Environmental Protection Agency, and the Food and Drug Administration announced they’re partnering with the Food Waste Reduction Alliance. It’s part of the “Winning on Reducing Food Waste Initiative” launched by the three agencies last year. The agencies will formalize industry education and outreach efforts with the Grocery Manufacturers Association, the Food Marketing Institute, and the National Restaurant Association, which are the three founding partners in the Food Waste Reduction Alliance. The alliance is working on three goals, including reducing the amount of food waste, increasing the amount of food donated to those in need, and diverting food waste from landfills. In the United States, more than one-third of all available food goes uneaten through loss or waste. Food is the single biggest type of waste in America’s daily trash. The agencies will contribute to the goal of reducing food waste through research, community investments, education and outreach, voluntary programs, public-private partnerships, technical assistance, and policy discussion. ********************************************************************************************** NCBA Happy with Hours of Service Legislation Introduced in Congress The National Cattlemen’s Beef Association is pleased with bipartisan legislation introduced in Congress that would provide flexible and common-sense relief from Hours of Service rules for agricultural haulers. The Responsible and Efficient Agriculture Destination Act would make sure that the current Hours of Service exemption that applies to the 150-air-mile radius from the source of an agricultural commodity adds the same radius flexibility to the back end of a trip or the destination. The bill also clarifies that this exemption would apply in every state on a year-round basis because agriculture and specifically livestock move across the country every day. “Agricultural haulers, especially those that move livestock, face very unique challenges that haulers in other industries don’t face,” says NCBA President Jennifer Houston. “This bill recognizes that need.” The bill was introduced in the House by Democrat Angie Craig of Minnesota and Republican Lloyd Smucker of Pennsylvania. “On behalf of all cattle producers, I’d like to thank everyone that signed on to this bill, which works toward needed flexibility within Hours of Service regulations for our livestock haulers,” Houston added.
| Rural Advocate News | Thursday October 31, 2019 |
Washington Insider: Modestly Bad Trade News There was more than a little bad economic and trade news for the ag sector this week, including a report that U.S. farm bankruptcies in September surged 24% to the highest since 2011. Bloomberg linked the bankruptcy data to “strains from President Trump’s trade war with China and a year of wild weather.” At the same time, the American Farm Bureau Federation is reporting that growers are becoming “increasingly dependent on trade aid and other federal programs for income and that the “squeeze on farmers underscores the toll China’s retaliatory tariffs have taken on a critical Trump constituency” as the 2020 election campaign heats up. The Farm Bureau report said that almost 40% of “projected farm profit” this year will come from trade aid, disaster assistance, federal subsidies and insurance payments, based on Department of Agriculture forecasts — as much as $33 billion of a projected $88 billion in income. AFBF noted that the trade war and two straight years of adverse weather “rattled” farmers already facing commodity price slumps. Chapter 12 bankruptcy filings in the 12 months ended September rose to 580 from a year earlier. That marked the highest since 676 cases in 2011 under the chapter of the bankruptcy code tailored for farms. The total “remains well below” historical highs in the 1980s, the federation said. Recent bankruptcies were concentrated in the 13-state Midwestern region, a key battleground in the upcoming election where grain, soybean, hog and dairy farms have been hit by trade disputes. More than 40%, or 255 filings, were in the region. Another piece of bad news came as Chile announced the cancellation of the Nov. 16-17 summit where President Trump had hoped to sign the preliminary trade accord with China. The decision to cancel follows a wave of protests that overwhelmed Chilean police, Bloomberg said. It called the unrest the most extensive “in a generation.” How and when the leaders of the world’s two largest economies will meet to resolve their trade differences appears to be the biggest question thrown up by the Chilean decision. The expected deal, which Trump had previewed in mid-October, had calmed fears of a continuing escalation in the trade war that has cast a shadow over the global economy for the past 18 months. The new cancellation “suggests that the trade war uncertainty might be hanging over us for longer,” Torsten Slok, the chief economist at Deutsche Bank AG, told Bloomberg. “It raises the risk that we could never see a phase two or phase three.” Chile also canceled the United Nations climate change conference, known as COP25, scheduled for December in Santiago, President Sebastian Pinera said. “We understand perfectly the importance of APEC and COP for Chile and the world, but we have based our decision on common sense,” Pinera said from the presidential palace. “A president needs to put its people above everything else.” The decision to cancel the meetings highlights the depth of trouble facing the Latin American nation that has seen almost two weeks of rioting and protests. It also comes as a deep embarrassment to the government that had insisted it would go ahead with the conference just two days ago. Bloomberg also reported that the White House says it still hopes to sign a preliminary accord with Xi Jinping next month, even after the cancellation by Chile appeared to catch the White House off guard. White House spokesman Hogan Gidley said that Trump still intends to sign a partial trade deal with Xi at about the same time in November as the planned Asia-Pacific Economic Cooperation summit. “We look forward to finalizing Phase One of the historic trade deal with China within the same time frame, and when we have an announcement, we’ll let you know,” Gidley said. The possibility of a Trump-Xi meeting in Santiago next month had buoyed markets as investors look for signs that an end to the multi-year trade war between the two nations is in sight. The White House was working as recently as Tuesday to finish a “phase one” agreement with an eye toward the leaders signing it in Chile, according to a statement from White House spokesman Judd Deere. Both President Trump and Vice President Mike Pence said last week they were optimistic the deal would be finalized at the summit. So, we will see. Both parties to the proposed partial trade deal appear inclined to favor at least a modest cooling off now, thus boosting chances for something positive to happen. However, given all the political tensions affecting both sides, the process still seems fragile and one producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Thursday October 31, 2019 |
USDA Releases Hemp Rule USDA released its interim final rule covering hemp production, with the measure coming into effect October 31. The plan would set up a nationwide regulatory framework to oversee commercial production of the newly legalized crop in time for the 2020 growing season. USDA said the measure will be in effect for two years and the agency will accept public comments as it considers potential revisions. USDA said it will act on state plans within 60 days of submission after it publishes the rule in the Federal Register. Some have expressed concern on the testing provisions in the plan. USDA said samples of hemp flower to be collected by a USDA - or state-approved agent within 15 days of anticipated harvest, and the sample must then be tested at a Drug Enforcement Agency (DEA) registered laboratory using one of several widely used methods, including post-decarboxylation as well as gas or liquid chromatography. However, USDA appears to have acknowledged the variance in testing methods, including a "measurement of uncertainty" for testing results that effectively bumps the legal THC level from 0.3% to 0.5%. Under the plan, states can set stricter rules but they cannot put rules in place that have easier standards than those laid out by USDA.
| Rural Advocate News | Thursday October 31, 2019 |
House Hearing Reveals Rifts Remain on Biofuel Policy The chasm between biofuel supporters and refiners shows now signs of being bridged based on testimony both sides delivered at a House Energy & Commerce subcommittee hearing this week on small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS). Both sides are clearly set in their positions and there was little indication that will change. The situation still remains that both biofuel supporters and refiners are not happy with EPA’s supplemental rule issued relative to 2020 biofuel requirements under the RFS which aimed at addressing the SRE issue. Given that the comment period on the plan runs through November 29, the November 30 deadline for finalizing the 2020 biofuel standards will be missed. And EPA has not committed to a timeline of when they will do so, only saying it will be later this year. The U.S. biofuel policy situation will remain uncertain until the final 2020 biofuel plan is in place.
| Rural Advocate News | Thursday October 31, 2019 |
Thursday Watch List Markets Halloween trading starts with weekly grain export sales, an updated U.S. Drought Monitor, U.S. jobless claims, personal incomes and the employment cost index -- all due out at 7:30 a.m. CDT. U.S. natural gas inventories are available at 9:30 a.m. Weather radar will be watched as rain and snow are expected to move eastward Thursday. Weather Thursday features rain and snow in the eastern Midwest, disrupting harvest. Dry and cold conditions elsewhere will be more favorable for harvest progress.
| Rural Advocate News | Wednesday October 30, 2019 |
China, U.S., on Track to Sign Phase One Agreement The U.S. and China are on track to sign the phase one trade agreement next month. President Donald Trump this week stated the negotiations are running “ahead of schedule.” The South China Morning Post reports Trump and Chinese President Xi Jinping (Shee Jihn’-ping) are set for a November 17 meeting in Chile to sign the interim trade deal. Trump says the agreement would “take care of the farmers,” among other things, including banking provisions. A spokesperson from China’s Foreign Affairs Ministry confirmed the progress, saying, “the two sides made substantial progress” in recent talks. Top-level negotiators met over the phone last Friday and will again very soon. The agreement includes an estimated $40-$50 billion of agricultural purchases by China over a two-year period, with $20 billion possible the first year. Market analysts say agricultural trade with China appears to be starting to normalize, ahead of the agreement. In 2017, before the trade war began, the U.S. shipped $19.5 billion worth of agricultural products to China. However, the trade war cut those exports in half. ************************************************************************************* USDA Releases Hemp Regulations Agriculture Secretary Sonny Perdue Tuesday released the long-awaited regulation plan for hemp production. Perdue says rulemaking teams operated as “all hands on deck” over the last few months in creating a “fair and science-based” program. The Department of Agriculture says the framework makes hemp producers eligible for several agricultural programs, including crop insurance. Under the interim final rule, USDA will approve hemp production plans developed by states. The program requires documentation of the land where hemp is produced, along with testing and licensing requirements. USDA will begin accepting applications 30 days after the effective date of the interim rule. Meanwhile, all hemp production must be sampled and tested for THC concentration levels at Drug Enforcement Agency registered laboratories. If a test confirms a THC level exceeding the approved level, then the crop must be disposed of. Hemp must not contain more than .3 percent THC on a dry weight basis, as a level above .3 percent is federally considered marijuana. The complete rule is available online at ams.usda.gov. ************************************************************************************* Ethanol Industry Tells Lawmakers Biofuel Waivers Created Economic Crisis Ethanol producers say small refinery waivers granted by the Environmental Protection Agency have caused an economic crisis for the industry. At hearing in Washington, D.C. Tuesday, Growth Energy told lawmakers “small refinery exemptions under the Renewable Fuel Standard is crippling rural America.” The ethanol industry and farm groups are not optimistic the EPA plan to restore biofuel blending to the statute of 15 billion gallons annually will be followed. Growth Energy says the regulatory attempts by EPA “give us little confidence that we will see the relief we need.” Farmers and ethanol producers are also upset the plan doesn’t make up for lost gallons over the last few years. Several biofuels and farm groups voiced support for the Renewable Fuel Standard Integrity Act of 2019, introduced by House Agriculture Committee Chair Collin Peterson. The groups say the legislation would bring transparency to the small refinery waivers. Refinery exemptions under the Trump Administration have totaled nearly six times more gallons than those under the previous Administration. ************************************************************************************* Food And Beverage Industry Urges Congress to Pass USMCA Food and beverage industry workers recently sent more than 10,000 individual letters to Congress to urge passage of the U.S.-Mexico-Canada Agreement. The Corn Refiners Association says the letters emphasized the economic benefits USMCA will bring to the U.S. business community and consumers alike. The letters are part of a grassroots effort by the association, along with several other food and agriculture organizations. Corn Refiners Association President and CEO John Bode (Boh-dee) adds, "the agriculture-related benefits of North American trade reach far into our economy." Bode says more than 70 percent of the agriculture-related jobs created by the North American Free Trade Agreement were outside of the farm sector. In recent weeks, members of the USMCA Coalition have been urging members of Congress to announce their support for the agreement. The Coalition reminds Congress that the food and agriculture industry "is the economic backbone of rural America" and an essential driver of the overall economy, accounting for one-fifth of American economic activity. ************************************************************************************* Fall Harvest Poses Grain Quality Challenges Grain inspection experts warn that the 2019 fall harvest will bring quality challenges for many. Tom Dahl, president of the American Association of Grain Inspection and Weighing Agencies, this week stated quality challenges may vary by region. Some may see weathered grain, while others may see green or immature grains. Or, it could be frost damaged kernels, mold, or fungus issues. Any of these create marketing issues for producers. For users, whether they are processors, feeders, or millers, Dahl says it is a matter of understanding the quality they are receiving so it can be used for its best purpose. The organization recommends accurate measurement of crop quality, as both buyers and sellers can benefit from clearly understanding the quality of the grain or oilseeds they are handling. Consistent, accurate test results can be best assured through using an Official Grain Inspection Agency. These are agencies supervised by the Department of Agriculture’s Federal Grain Inspection Service. Farmers can learn more about accurate quality testing online at www.aagiwa.org. ************************************************************************************* Syngenta Named Top AG Employer in 2019 A Science Magazine survey names Syngenta as one of the world's leading biotech employers - and the top agriculture employer. The 2019 Science Careers Top Employers Survey ranked Syngenta ten out of 20 top employers in biotechnology, biopharmaceutical, and pharmaceutical and related industries, marking the tenth year of recognition by the global survey. The annual survey identifies companies with the best reputations as employers, based on 23 attributes, including treating employees with respect, being socially responsible and being an innovative leader in the industry. The results were compiled by a sample of 7,600 people across the applicable industries. A Syngenta spokesperson says of the ranking, "One of Syngenta's greatest strengths is our collaborative culture." The company has biotechnology and seeds research operations globally, with centers of innovation in Research Triangle Park, North Carolina, and Beijing, China. The complete rankings of the 2019 survey are available on the Science magazine website, www.sciencemag.org.
| Rural Advocate News | Wednesday October 30, 2019 |
Washington Insider: Speculation About What Follows Expectations for Rate Cuts Well, it is hard to keep up with the speculations about economic and trade policy these days. For example, Bloomberg is reporting this week that not only is the Fed projected to lower borrowing costs today for the third straight time, “a slew of economic reports this week will play a key role in whether the central bank needs to keep cutting or can take a breather.” Figures due for release today “are projected to show gross domestic product in the July-September period expanded at 1.6% annualized pace, the second-slowest quarter under President Trump and about half the pace at the start of 2019 – as consumer spending pulled back from gangbusters growth. Also, a couple of days later, the October jobs report may indicate that the largest strike in more than a decade pushed nonfarm payroll gains below 100,000—tepid gains even if the impacts of the General Motors Co. walkout are excluded. The key question is whether the economy is stumbling toward a recession or merely cooling off, Bloomberg thinks. Stocks at a record high, along with a yield curve that’s turned positive again, have mitigated concern about a downturn. Still, deteriorating global growth, administration tariffs on Chinese goods and a weakened manufacturing sector have put the record-long expansion – and the potential political impacts that implies “on the backs of consumers who are increasingly in a tougher position,” Bloomberg says. “It has the potential to be a pretty ugly week,” said Sarah House, senior economist at Wells Fargo & Co. “We are far from out of the woods in terms of this slowdown and some of the headwinds that the economy is facing.” While GDP and payrolls will take much of the spotlight, the widely watched Institute for Supply Management manufacturing index due Friday is expected to contract for another month in October, deepening concerns about fragile factories. Meanwhile, the employment cost index, a broad gauge monitored by the Fed, on Thursday could suggest companies remain hesitant to offer better wage gains and benefits. “Until there’s some clarity on trade then it’s hard to see any kind of a meaningful rebound in business investment,” said Richard Moody, chief economist at Regions Financial Corp. Business spending on equipment and structures may hit bottom this quarter or continue to decline “and the two have very different implications for the course of the economy,” he said. Bloomberg reports that its own economists say that, “economic activity in the second half of the year is poised to decelerate markedly as several drivers of growth fade and consumers are left dominating the outlook to an even greater degree than usual,” according to Carl Riccadonna, Yelena Shulyatyeva, Andrew Husby and Eliza Winger. While there have been positive signs on trade, negotiations are far from over, the President said Monday. He noted that the U.S. is ahead of schedule with finalizing sections of the first phase of a trade deal with China that could be signed soon. At the same time, Bloomberg claimed to see “one bright spot”: Residential investment, which has shrunk for six consecutive quarters, is poised add to accelerate its recent growth in the latest period as low mortgage rates helped boost sales. Still, the group thinks that this gain “was likely too small to make a significant impact on GDP for the period, so the onus remains on Americans to keep buying goods and services.” As a result, Friday’s employment report, the first on the state of the labor market in the fourth quarter, is seen as increasingly important. The overall trend in payroll gains has slowed this year down to 161,000 new jobs a month versus 223,000 in 2018. While that’s still more than enough to keep up with working-age population growth, a continued pullback could dent consumer spending. “If you see more slowing in the labor market than is already expected I think that is going to call into question whether the consumption story is going to hold up,” said Brett Ryan, senior U.S. economist at Deutsche Bank AG. “And that’s the fear.” The now-ended walkout of 46,000 General Motors Co. workers together with its follow up implications “could complicate the headline number.” However, the strike will be concentrated in manufacturing payrolls, making it easy to separate from the overall trend. In past jobs reports, the Bureau of Labor Statistics has flagged when a strike causes large payroll declines in specific industries. Another wrinkle could come from hiring for the 2020 census. Fewer than 30,000 of roughly 40,000 temporary hires were accounted for in official data for August and September. Bank of America Corp. economists expect nonfarm payrolls to rise just 25,000--the low end of forecasts ranging as high as 140,000 – with wages stalling and the Fed signaling it’s open to further interest-rate cuts. If all goes as Bank of America expects, that indicates “the economy is shaky and the Fed still perceives there to be risks,” said Michelle Meyer, the firm’s head of U.S. economics. So, we will see. The current uncertainties are certainly significant, trends producers should watch closely as the season progresses, Washington Insider believes.
| Rural Advocate News | Wednesday October 30, 2019 |
Spanish Olive Producers Call on EU to Investigate US Farm Subsidies Spanish olive producers are calling on the European Union (EU) to hit the U.S. with stiff countermeasures over the tariffs imposed by the U.S. on a host of products in the Airbus dispute. Olive producers face additional duties on black olives as a result of a trade action by the U.S. International Trade Commission to apply anti-subsidy tariffs on the imports. The Airbus-related action also imposed tariffs on green olives – essentially putting tariffs on all table olive shipments from Spain. The Spanish table olive producer group Interaceitunas is calling on the European Commission to investigate whether the U.S. unfairly subsidizes its farmers. The group is calling for the matter to be pursued at the WTO.
| Rural Advocate News | Wednesday October 30, 2019 |
Mixed Signals Continue on US-China Trade Front Developments on the U.S.-China trade front continue to see mixed reports emerge. President Donald Trump on Monday said “Phase One” trade talks with China were ahead of schedule. “We are looking probably to be ahead of schedule to sign a very big portion of the China deal, and we will call it phase one but it is a very big portion,” Trump said. “That would take care of the farmers. It would take care of some of the other things. It will also take care of a lot of the banking needs.” The agreement is expected to be signed when Trump and Chinese leader attend the APEC summit November 16-17 in Chile. “So we are about, I would say, a little bit ahead of schedule, maybe a lot ahead of schedule,” the president said. “Probably we will sign it.” However, Tuesday saw Reuters quote a Trump administration official as saying that the pact may not be ready to sign by the November APEC meeting. Financial markets took the development as a negative even as the report also quoted the official as saying that if the agreement was not ready for signing, it did not mean that the talks have fallen apart.
| Rural Advocate News | Wednesday October 30, 2019 |
Wednesday Watch List Markets At 7:15 a.m. CDT, ADP releases estimates of private job growth in the U.S., an early hint for Friday's unemployment report. The first estimate of third-quarter U.S. GDP is set for 7:30 a.m. CDT. The U.S. Energy Department's weekly inventory report is due at 9:30 a.m., followed by the Federal Reserve's next interest rate decision at 1 p.m. CDT. Weather Snow and mixed precipitation across the central Plains, the southwest to the north-central Midwest regions during Wednesday will affect travel, transport and seasonal fieldwork, including harvesting in Midwest areas. The heaviest snow, 2-4 inches and locally heavier, is likely to occur from east Iowa and northwest and north Illinois through southern Wisconsin. Rain, showers and thundershowers elsewhere in the east and south Midwest, the Delta and into the east-central U.S. areas is also likely to affect seasonal fieldwork today. Cold, dry conditions, will favor harvesting in the Northern Plains and for the most part in the Canadian Prairies as well.
| Rural Advocate News | Tuesday October 29, 2019 |
Farm Debt Repayment Stretching Terms Farmers need more time to pay off non-real estate loans, according to recent data. An analysis published last week by Agricultural Economics Insights, an agriculture economic analysis firm, shows repayment term length on farm loans recently reached levels not seen in decades. In 2018, the average repayment term on all non-real estate loans was 15.4 months. The report says that’s the highest annual observation noted since 1977. In recent years, even as farm income has turned higher, producers are still relying on higher levels of debt for farm machinery, livestock and all non-real estate loans. However, the analysis says longer repayment terms, coupled with historically low-interest rates, make it easier for producers to meet the annual debt service obligations of high debt levels. Terms over the last 20 years generally stayed between 12 and 14 months, with a decline in 2008 and 2009 due to the Great Recession, when the average non-real estate farm loan term dipped to 11 months. ************************************************************************************* USDA Pauses RFID Ear Tag Proposal The Department of Agriculture has paused its effort to mandate RFID ear tags for cattle and bison. The proposal would have mandated the ear tags for animals moved in interstate commerce beginning in January of 2023. A guidance document detailing the proposal on the USDA website was recently removed, following a lawsuit against the proposal filed by R-CALF USA. USDA’s Animal and Plant Health Inspection Service says that based on industry feedback and Executive Branch policy, “APHIS believes that we should revisit those guidelines.” President Donald Trump earlier this month signed an executive order to stop federal agencies from using guidance documents to impose rules. APHIS removed the factsheet from its website, saying it is “no longer representative of current agency policy.” R-CALF CEO Bill Bullard called the proposal a federal overreach by USDA, saying the proposal would “gift RFID ear tag manufactures” more profits. USDA says it still believes “RFID devices will provide the cattle industry with the best protection against the rapid spread of animal diseases.” ************************************************************************************* Marshall, Brindisi, Introduce Real MEAT Act A bill introduced Monday would address deceptive labeling practices in alternative protein products, such as plant-based imitators of meat. Republican Representative Roger Marshall of Kansas, along with New York Democrat Anthony Brindisi (brin-dis-see), introduced the Real Marketing Edible Artificial Truthfully, or Real MEAT Act. The legislation would codify the definition of beef for labeling purposes, reinforce existing misbranding provisions to eliminate consumer confusion, and enhance enforcement measures available to the Department of Agriculture if the Food and Drug Administration fails to take appropriate action. Marshall says alternative protein products “have confused many consumers with misleading packaging and creative names for products.” Brindisi says the bill is “about safety and transparency.” The National Cattlemen’s Beef Association applauded introduction of the legislation. NCBA President Jennifer Houston says a growing number of fake meat products are “clearly trying to mislead consumers” about what they’re trying to get them to buy, adding “consumers need to be protected from deceptive marketing practices.” ************************************************************************************* Study: Risk of ASF in U.S. has Doubled A recent study shows the risk of African Swine Fever entering the U.S. has nearly doubled since the ASF epidemic began in 2018. Researchers at the University of Minnesota College of Veterinary Medicine say the probability of ASF already reaching the U.S. is high, but efforts to stop the virus at the borders have stopped its entry. The study measured the risk of ASF entering the United States through the smuggling of pork products in air passenger luggage. The study reports five specific airports account for over 90 percent of the potential risk: Newark-New Jersey, George Bush-Houston-Texas, Los Angeles-California, John F. Kennedy-New York, and San Jose-California. If ASF were to enter the United States, its spread would cause immense economic damage to the pork industry and food production more broadly, and could lead to billions of dollars of losses for swine producers. Since the 2018 outbreak in China, the country has slaughtered an estimated 1,170,000 animals. ************************************************************************************* Early 2020 Forecast Signals More Trouble for Missouri River Farmers Early predictions for the 2020 runoff season suggest more flood risks for farmers along the Missouri River. Through a series of public meetings, the U.S. Army Corps of Engineers says wet and saturated soils, along with increased rainfall in the long-term forecast, means 2020 looks similar to the 2019 spring. Flooding remained common this year along the Missouri River since the so-called bomb-cyclone storm in March, where saturated and frozen soils led to a large amount of water runoff in the lower Missouri River basin. The lower basin is uncontrolled, meaning no dams regulate the flow, below the Gavins Point dam. Water releases from Gavins point remain well above average, at roughly 80,000 cubic feet per second, as the Corps tries to prepare the reservoir system for next year. However, winter weather and the risk of ice jams will soon halt those efforts. The last forecast update predicted 2019 runoff would equal the record set in 2011. ************************************************************************************* Voting Begins for 2019 Farm Service Agency County Committee Elections The Department of Agriculture Monday announced it will begin mailing ballots on November 4 to eligible farmers and ranchers across the country for the Farm Service Agency county committee elections. Each committee has three to 11 elected members who serve three-year terms of office. One-third of county committee seats are up for election each year. Newly elected committee members will take office January 1, 2020. To be counted, ballots must be returned to the local FSA county office or postmarked by December 2. FSA Administrator Richard Fordyce says the members “play a key role in our efforts to provide assistance to producers.” Producers must participate or cooperate in an FSA program to be eligible to vote in the county committee election. Farmers can find out if their local administrative area is up for election and if they are eligible to vote by contacting their local FSA county office. Eligible voters who did not receive a ballot in the mail can pick one up at their local FSA county office. Visit fsa.usda.gov for more information.
| Rural Advocate News | Tuesday October 29, 2019 |
Washington Insider: MIT Media Lab Food Project Closed The New York Times reported this week that MIT has “mostly shut down the futuristic project known as “OpenAg” following accusations of “misleading sponsors and the public." The once-celebrated Media Lab’s micro-greenhouses were supposed to grow food under virtually any conditions — but apparently “worked under almost none,” the Times said. And now, MIT has turned off the lights, possibly for good. The Times report said that the Massachusetts Institute of Technology confirmed Thursday that it had “mostly closed” the OpenAg project which has been accused of misleading sponsors and the public by exaggerating results. In addition, the Media Lab has been under scrutiny for its financial ties to the convicted sex offender and financier Jeffrey Epstein. OpenAg received millions of dollars in corporate sponsorships and was promoted in glowing news features, including a “60 Minutes” segment about the Media Lab called “The Future Factory.” MIT shut down the project late last week after a sweeping assessment, it said. The project was a favorite of Joichi Ito, the Media Lab’s director until September when he resigned under pressure after his efforts to conceal his financial connections to Epstein were disclosed. The financier killed himself in jail in August after being indicted on federal sex-trafficking charges. The OpenAg project focused on designing and deploying so-called “food computers,” small high-tech greenhouses meant to allow crops to thrive in thin air, without soil or sunlight and under precisely controlled conditions. The project also operated larger “food servers,” which are housed in shipping containers about 15 miles north of the MIT campus in Middleton, Mass. According to the university statement, its vice president for research, Maria Zuber, “halted OpenAg activities, pending completion of ongoing assessments.” Zuber consulted with other members of the executive committee running the Media Lab and agreed to permit some documentation and design work to resume, but provided no timetable for finishing those assessments. Throughout the tumult at the OpenAg project, its leader, Caleb Harper, had been posting to Instagram photos and a video of what looked like experiments. Harper did not respond to requests for comment, the Times said. The Times described Harper as an architect “without any scientific training” who described food computers as integral to a “fourth agricultural revolution.” In a TED Talk from 2015, which has more than 1.8 million views, Harper laid out his vision: Food computer owners would share their data on optimal growing conditions — called “climate recipes” — with fellow food producers around the world, who would use that information to improve yields from their own food computers. According to former researchers at the project, however, Harper made exaggerated or false claims to the project’s corporate sponsors as well as in talks and interviews with the news media. They said plants bought in stores had been inserted into the food computers so visitors would think they had been grown there. More broadly, the researchers said, the food computers could not independently control the conditions within their boxes — changing the amount of light would raise the temperature, and so on. Whatever data was collected by the food computers would therefore have little scientific significance. Nonetheless, the lab produced a paper for a peer-reviewed journal that claimed to have used machine learning to discover the ideal combination of light, nutrients, temperature and water to grow the most flavorful basil. The independent news organization ProPublica and the Boston radio station WBUR reported last month that the larger food servers in Middleton were dumping wastewater with 20 times the legal limit of nitrogen underground, an apparent violation of state regulations. MIT halted the research at Middleton and said it was evaluating how the water had been disposed of there. The nitrogen levels were not an immediate danger to the public, the town administrator, Andy Sheehan, said in an interview, but could lead to overgrowth of plants that can threaten local wildlife. On Thursday, IEEE Spectrum, the publication of the one of the world’s largest professional organizations devoted to engineering and applied sciences, released a lengthy investigation on OpenAg. The investigation examined OpenAg’s plan to deliver personal food computers to a Syrian refugee camp in Jordan through the United Nations World Food Program. According to the investigation, Harper, in talks to sponsors and the public, described his pride in giving the refugees the means to grow their own food inside the camp. However, as the IEEE Spectrum article noted, the food computers never made it to the camp itself, but were kept in a Jordanian research lab where they faltered because of hot, dry conditions and technical failures. So, it seems that yet another “super tech” idea and application is raising more questions than answers. Clearly, super tech approaches can yield ideas and lessons more conventional market participants can use some of the time but artificial environments have often proved both difficult and expensive to manage. It is not clear yet what lessons were intended by the Open Ag experiment, but they seem likely to reveal that even heavy investments do not always provide large returns and that promises of fundamental breakthrough technology in basic food production processes should be watched very carefully by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday October 29, 2019 |
EPA Publishes Supplemental RFS Plan EPA’s supplemental proposal for the 2020 biofuel and 2021 biodiesel levels under the Renewable Fuel Standard (RFS) has been published in the Federal Register. There are no discernable changes to the plan that the agency released earlier this month. There is a 32-day comment period on the plan – it runs through November 29 which that means the agency will not meet the statutory deadline to finalize the 2020 levels by November 30. EPA will also hold a public hearing on the plan October 30 in Michigan. The Renewable Fuel Standard (RFS) will stay in the headlines via a House hearing today regarding the small refinery exemptions (SREs) granted by the Trump administration. The House Energy & Commerce Environment and Climate Change Subcommittee will hold a hearing on "Protecting the RFS (Renewable Fuel Standard): The Trump Administration's Abuse of Secret Waivers."
| Rural Advocate News | Tuesday October 29, 2019 |
USTR Notes Progress In US-China Trade Talks U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke by phone Friday with Chinese Vice Premier Liu He, and afterward USTR said that the two sides “made headway on specific issues and the two sides are close to finalizing some sections of the agreement.” More talks of course are on tap. Indications are the components so far are the halt of additional U.S. tariffs in exchange for a two-year phase-in of Chinese purchases of a U.S.-reported $40 billion to $50 billion of U.S. farm goods, new rules on currency manipulation and efforts by China to finish opening its financial sector to foreign firms. It might include some measures to protect intellectual property. In a statement from China, Xinhua reported the two sides reached an agreement for the U.S. to import cooked poultry products from China, as well as to regard its catfish product regulation system as equivalent to the United States. “Both sides agreed to appropriately resolve the core concerns of both parties,” Xinhua said. “Working-level deputies will speed up talks for the trade deal before the principals talk over the phone in the near future.”
| Rural Advocate News | Tuesday October 29, 2019 |
Tuesday Watch List Markets On Tuesday, the Federal Reserve begins a two-day meeting, which ends with a decision on interest rates on Wednesday. U.S. consumer confidence and pending home sales are Tuesday's only official reports, both set for 9 a.m. CDT. Weather forecasts remain of interest through harvest and any trade moves by China get close attention. Weather Tuesday features dry but cold conditions in northern and central crop areas, slowing harvest progress. Light rain will be noted in the far Southern Plains. Southeastern areas will have a warmer pattern. Rain, snow and cold will cover much of the central U.S. Tuesday evening through Wednesday.
| Rural Advocate News | Monday October 28, 2019 |
Chinese Importers Buy Even More U.S. Soybeans The U.S. Department of Agriculture says that private exporters reported the sale of 264,000 tons of U.S. soybeans to China for delivery in the 2019/2020 marketing year. The deal comes as hopes continue for a partial trade deal between the world’s two largest economies. Reuters says this is the first U.S. government confirmation of a soybean sale to China since October 11, when President Trump announced that China will buy up to $50 billion in American farm commodities thanks to a partial trade agreement. A prior report showed U.S. soybean export sales of 475,200 tons, which included just 68,300 tons to China during the week ending on October 17. Those numbers were quite a bit lower than analysts’ projections for that week, ranging from 800,000 to 1.6 million tons. Earlier last week, Beijing had offered major Chinese and international soybean processors waivers that would exempt them from tariffs on imports of up to 10 million tons of U.S. soybeans. USDA has confirmed sales totaling six million tons of soybeans to China since the marketing year began on September 1. That compares with just 431,000 tons over the same time in 2018, as well as 8.4 million tons during the same period in 2017, before the trade war. ********************************************************************************************** Ag Sales Could Hit Pre-Trade War Levels by 2020 Election U.S. farmers could see a return to a pre-trade war level of ag sales to China by the 2020 election. Bloomberg says that would relieve economic pressure on one of President Trump’s key voting blocs as he campaigns for another term. The president announced a tentative partial trade deal back on October 11. China is looking to buy $20 billion worth of agricultural products per year if the partial deal with the U.S. is signed. People familiar with the negotiations told Bloomberg that China would consider boosting that level of purchases as high as $40-50 billion. That would take China’s imports of American commodities back to near-2017 levels before the feud broke out between the White House and Beijing. People close to the situation say increasing the level of purchases would depend on President Trump removing remaining punitive tariffs. Beijing says it will exempt some U.S. agricultural goods from tariffs if the U.S. removes tariffs imposed on September 1 and cancels the tariff hike scheduled for December. President Trump is hoping that he and Chinese President Xi Jinping will sign a phase-one deal when they meet in Chile next month. Chinese officials have also said publicly that talks are progressing. ********************************************************************************************** Mexico Says U.S. Congress Will Move on USMCA Trade Deal Soon Mexico’s Deputy Foreign Minister for North America said Friday that he believes U.S. lawmakers will begin the process of approving the U.S.-Mexico-Canada Trade Agreement soon. He believes it will move forward in the U.S. Congress now that Mexican President Obrador has vowed to increase wages and funding for labor reforms. A Yahoo Dot Com article says the USMCA must win approval in a divided U.S. Congress, where Republicans control the Senate and Democrats control the House. At a news conference last week, the Deputy Foreign Minister said, “The progress made in dialogue with House Speaker Pelosi, U.S. lawmakers, and negotiators makes us think that the end to this complex story is near, that soon we’ll see the United States initiate the formal process for approving the trade deal.” Mexican President Obrador has vowed to increase wages and other labor provisions in a campaign to convince House Democrats to ratify the North American trade agreement. When reporters asked if Mexico’s push to convince U.S. lawmakers about its commitment to implement the labor reforms was working, the Deputy Minister said, “I think we’re getting there.” President Obrador sent a letter recently to Speaker Pelosi calling for ratification “soon,” to not have the 2020 election process “Impede or delay” its finalization. ********************************************************************************************* Rabo Agrifinance Offering Industry’s First Organic Transition Loan Farmers looking for organic certification on all or part of their operations can get some financial help from Rabo Agrifinance. The company has developed a loan product so farmers can get the capital they need up front to help with costs associated with changing production practices. Farmers can then schedule loan repayments when they get additional revenue from selling certified organic products. The USDA requires a three-year transition period for farmers to get their land certified as organic. The deputy head of Rabo Agrifinance says, “During that transition period, farmers often experience yield loss in comparison to conventional production, and they can’t collect organic premiums for that land’s production to compensate for the lower yield. That challenge has created a financial barrier against making the transition to organic production.” Farmers want to take advantage of consumer demand for organic products, but they often have trouble penciling out how they’ll survive the transition period it takes to be able to meet that demand. Stephen Nicholson, a grain and oilseed analyst at Rabo Agrifinance, says the demand for organic products has grown faster than domestic production. ********************************************************************************************** USDA Releases Partial List of Agricultural Projections to 2029 The USDA will release selected tables prepared for the upcoming “USDA Agricultural Projections to 2029” report on November 1. USDA will post online tables containing long-term supply, use, and price projections to 2029 for major U.S. crops and livestock products. The tables will also include supporting U.S. and international macroeconomic assumptions. The short-term projections from the October 11, 2019, WASDE report are used as a starting point. The complete USDA Agricultural Projections to 2029 will be released in February of 2020. The complete report will include a full discussion of the commodity supply and use projections, as well as projections for farm income and global commodity trade. The early-release tables will be posted to the Office of the Chief Economist’s website at www.usda.gov/oce. USDA’s long-term agricultural projections represent a departmental consensus on a ten-year representative scenario for the agricultural sector. The projections don’t represent USDA forecasts, but rather reflect a conditional long-run scenario based on specific assumptions about macroeconomic conditions, policy, weather, and international developments, along with no domestic or external shocks to global agricultural markets. ********************************************************************************************** Legislation Will Protect America’s Food Supply The Senate unanimously approved bipartisan legislation designed to address the shortage of agricultural inspectors who protect the nation’s food supply and agricultural industries at the border. The Protecting America’s Food and Agriculture Act of 2019 would ensure the safe and secure trade of agricultural goods across the nation’s borders. It authorizes the U.S. Customs and Border Protection to hire additional inspectors, support staff, and even canine teams to fully staff American airports, seaports, and land ports of entry. “Agriculture is a critical economic driver across the country, but longstanding shortages of agricultural inspectors limit Customs and Border Protection’s ability to prevent pests, diseases, and other dangers from entering our country and putting production agriculture at risk,” says Michigan Democrat Gary Peters, one of four senators who introduced the legislation. Senate Ag Committee Chair Pat Robers says, “By strengthening the agricultural inspector workforce at the border, American agriculture and our entire food system will be safer.”
| Rural Advocate News | Monday October 28, 2019 |
Washington Insider: Push Back on Trade Policies There has been significant unhappiness for some time among groups on the frontline in the trade fight, primarily in response to the administration’s heavy reliance on tariffs — and on its willingness to apply them to well established, functioning markets. Bloomberg is reporting that this week a group of prominent economists from the U.S. and China have released a joint statement calling for the world’s two largest economies “to abandon their trade war and agree to a new path forward that would give both countries more latitude to both pursue their own domestic economic policies and hit back at those that hurt them.” In a joint statement issued in China on Sunday, 37 economists – a including Joseph Stiglitz, Michael Spence and three other Nobel winners – bemoaned what they said has been a descent of the trade conflict into a binary debate where the only emerging solutions are either wholesale economic reforms by China leading to a converging of economic models or an economically damaging “decoupling.” The group argued a more sensible framework for future trade relations would give China room to pursue industrial policies that are often a target of criticism from the U.S., while also allowing the U.S. latitude to respond with targeted tariffs if China’s policies were damaging its interests. “We believe this approach preserves the bulk of the gains from trade between the two economies without presuming convergence in economic models,” the statement says. It also would be in line with the current multilateral system, they argued, although it would enlarge both the U.S. and China’s rights under current World Trade Organization rules. The push is emblematic of the ways in which economists and other thinkers are wrestling with how to respond to U.S. President Trump’s challenge to the existing governance of the global economy. While many countries have circled the wagons to try and protect the WTO and other institutions from Trump’s attacks, there is also a growing acknowledgment from many sides of politics that the current system has not worked in addressing China’s economic rise and its effect on other economies. The statement comes as Trump is working to close what he has described as “phase one” of a trade truce with China that is designed to avoid a further escalation of their trade wars. It would see China commit to resuming agricultural purchases from the U.S. at levels similar to those seen before the U.S. started imposing new tariffs last year and would put on hold the threat of further U.S. duties. It is also expected to include commitments on intellectual property reforms and currency manipulation by China. But the interim deal, which President Trump has said he hopes to sign with China’s Xi Jinping at a summit in Chile next month, would crucially push discussions of other U.S. complaints such as China’s industrial policies to later rounds of negotiations. Bloomberg said that the effort unveiled Sunday was led by New York University law professor Jeffrey Lehman, Harvard economist Dani Rodrik and Yang Yao, dean of the National School of Development at Peking University. Rodrik is a long-standing critic of globalization and has advocated giving countries more “policy space” to pursue and protect domestic economic priorities, arguing that the current global trading system often violates nations’ sovereignty. The statement’s other signatories include former World Bank chief economists Justin Yifu Lin and Kaushik Basu. Professor Rodrik said President’s Trump’s trade attack on China has shifted the debate on how to manage the economic relationship into dangerous territory. “What he is doing is crowding out space for a more reasonable discussion,” he said. “What the United States is doing is actually engaging in a trade war and imposing tariffs as a way of forcing China into a series of economic arrangements,” he said. “The modus operandi is ‘China you are not playing by the rules of the game and we are going to raise our tariffs on you until you fall into line.’” At the same time, he said, “China brings to a head the fundamental tensions of the world trading regime like nothing else” and policymakers needed to realize that their expectation that China would simply “fall into line” with global trading rules had not worked. “China is the clearest example that that is an unrealistic expectation and because it is such a large economy it makes the tension existential,” he said. While the economists statement likely will receive considerable media attention, it is unclear whether it will have any significant impact on administration policy makers who long have been “deeply dug in” on the use of aggressive tariffs to achieve fundamental shifts in China’s policies. Still, there were a few hints that some reconsiderations may be already underway. For example, one of the administration’s most active “China hawks,” White House Trade Adviser Peter Navarro said over the weekend that a postponement of tariffs on China due to be implemented in December “might be in play” as the administration “works toward the signing of a partial trade deal in Chile next month.” “If they walk away again it won’t be our fault,” Navarro said in a TV interview, referring to the breakdown in talks in May. “We are on a glide path to Chile...let’s see what happens” So, we will see. It seems clear that both economic and political pressures are building on both sides for some sort of reset on trade, especially if the global economy continues to show signs of weakening. Whether or not the changes extend as far as the recent letter from the economists’ group suggests remains to be seen, but could well mean at least consideration of a widened dialogue that producers should watch closely if it emerges, Washington Insider believes.
| Rural Advocate News | Monday October 28, 2019 |
Sen. Ernst Warns She Could Call For Wheeler to Exit Over Biofuel Plan Should the biofuel plan from EPA not result in restoring demand for ethanol as has been pledged by President Donald Trump, Sen. Joni Ernst, R-Iowa, said she will call for EPA Administrator Andrew Wheeler to leave his post. "If we get to a point where the EPA is not following through on what the president has directed them to do then we will have to hold them accountable," Ernst said Thursday in remarks to Iowa reporters. "And I, at that point if we do not see that result, that 15 billion gallons, then I am ready to call for the resignation of Andrew Wheeler.” She said if that were to happen, she would go to President Donald Trump and say, “‘Andrew Wheeler is the one that is not following through with your commitment to America’s farmers. You need to get rid of him.'"
| Rural Advocate News | Monday October 28, 2019 |
China to Ask Removal of Existing Tariffs in Exchange for Stepped-up Ag Buys Discussions between top-level U.S. and Chinese negotiators – U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steve Mnuchin and Chinese Vice Premier Liu He – were expected to see China request cancellation of “some planned and existing U.S. tariffs” on Chinese imports in exchange for China’s increased purchases of U.S. farm goods, according to sources cited by Reuters. China was expected to request the U.S. not impose tariffs December 15 on $156 billion in goods from China and that the U.S. remove the 15 percent tariffs put in place in September on $125 billion in China products. “The Chinese want to get back to tariffs on just the original $250 billion in goods,” one source told the news service. China would, in turn, exempt some U.S. ag products from tariffs, including soybeans, wheat and corn, the report said, with Chinese buyers exempt from existing tariffs to make purchases and get refunds of tariffs already paid on prior purchases. The report also indicated that Lighthizer and Mnuchin would travel to China the week of November 3, but the Treasury Department did not confirm that possibility.
| Rural Advocate News | Monday October 28, 2019 |
Monday Watch List Markets Traders will check the latest weather forecasts for harvest opportunities and have ears perked for any trade news with China. USDA will release its weekly report of grain export inspections at 10 a.m. CDT, followed by a new Crop Progress report at 3 p.m. Weather Dry conditions are in store for all primary crop areas Monday. Temperatures will be very cool north and central and warm south and southeast. A rain-snow mix is indicated to form in the Midwest Tuesday.
| Rural Advocate News | Friday October 25, 2019 |
China First Year Phase One Agreement Ag Purchases aimed at $20 Billion The phase one agreement with China would boost U.S. ag exports to at least $20 billion in its first year. The overall agreement includes $40-50 billion of U.S. farm commodity sales to China over a roughly two-year period. China claims it would aim to buy at least $20 billion worth in the first year, if the agreement is signed, according to Bloomberg News. $20 billion would boost U.S. export sales to China back to levels seen before the tit-for-tat trade war began. China imported $9.1 billion of U.S. farm products in 2018, down from the 2017 level of $19.5 billion. China and the U.S. are working out the details of the limited phase one agreement that could be signed next month. Meanwhile, Vice President Mike Pence delivered a closely watched speech on China in Washington, D.C. Thursday. In his remarks, Pence called on China to “start anew by ending the trade practices that have taken advantage of the American people for far too long.” ************************************************************************************* EPA Proposes Pesticide Application Exclusion Zone Requirements Update The Environmental Protection Agency Thursday issued a notice of proposed rulemaking regarding application exclusion zones, known as AEZ. The National Corn Growers Association says the proposal would make two major changes for farmers. The changes include modifying the AEZ so it is only enforceable on a farmer’s property. The proposal would replace the current regulation requiring farmers to ensure individuals are outside of the pesticide AEZ not only on their property, but off their property as well. The proposal would also exempt farm owners and their immediate family members from the requirement that they leave their home during certain pesticide applications. EPA Administrator Andrew Wheeler stated in an agency news release the updates maintain safety requirements, “while providing greater flexibility for farmers.” The American Farm Bureau Federation welcomed the proposed rule change. AFBF President Zippy Duvall says, “every effort to make the rule more sensible and practical for farmers while safeguarding workers is important.” EPA will accept comments on the proposal through a 90-day comment period. ************************************************************************************* USDA Encourages Producers to Contact Insurance Agents for Delayed Harvest The Department of Agriculture says farmers in the federal crop insurance program facing harvest delays should contact their Approved Insurance Provider. USDA says those farmers should file a Notice of Loss and request more time to harvest. Producers in several states, including Colorado, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming, have been affected by extremely wet and snowy conditions early this fall. Martin Barbre, Administrator of USDA’s Risk Management Agency, says, "producers covered by Federal crop insurance should contact their insurance agent as soon as possible to determine what actions they can take." Producers must file a Notice of Loss and request more time to harvest before the end of the insurance period, so that federal crop insurance claims are settled based on the amount of harvested production. The end of the insurance period for crops such as spring-planted wheat and barley is October 31, and for corn and soybeans is December 10. Insurance providers may allow additional time to harvest, on a case-by-case basis, under specific circumstances. ************************************************************************************* Drought Expanding in South, Southwest Drought conditions expanded in the South and Southwest over the last week, while the Midwest largely remains drought-free. The weekly Drought Monitor Thursday showed drought and abnormal dryness expanded across parts of Texas and Oklahoma. But, other parts of Texas, Arkansas, Louisiana, Mississippi and Tennessee experienced a reduction of drought and abnormal dryness. Meanwhile, 75 percent of the Southeast region of the U.S. remains in classified drought conditions. However, heavy rain, locally over five inches, contracted drought and abnormal dryness across much of the region. Much of the Four Corners states in the west are in a classified moderate to severe drought. Parts of Illinois, Ohio, Indiana and Kentucky are considered abnormally to moderately dry, while much of the Upper Midwest and High Plains remain mostly drought-free. California, along with the Pacific Northwest, remains mostly drought-free, as well. Meanwhile, more rains are expected in the South and Southeast over the next week, providing potential drought relief for those regions. ************************************************************************************* Hawley, Blackburn, Introduce Bill to Move Most Federal Agencies Missouri Senator Josh Hawley introduced legislation this week to move the Department of Agriculture to Missouri. Joined by Tennessee Senator Marsha Blackburn, the Republicans seek to move the headquarters of USDA to Missouri and the Department of Education to Tennessee. However, the legislation doesn’t stop there, as the bill would move 90 percent of ten federal agencies out of Washington, D.C., and into what the lawmakers describe as economically distressed regions. Hawley claims federal employees of the two agencies are “too removed from the rest of America.” The Helping Infrastructure Restore the Economy, or HIRE Act, the Senators claim, would “move policymakers directly into the communities they serve.” Senator Blackburn says moving federal agencies out of Washington, D.C., “boosts local economies and lowers costs.” The Senators cited the relocation of two USDA agencies, the Economic Research Service and the National Institute of Food and Agriculture, along with the Bureau of Land Management’s planned move to Colorado, in introducing the legislation. ************************************************************************************* USDA Opens Registration for the 2020 Agricultural Outlook Forum The Department of Agriculture Thursday opened registration for its 2020 Agricultural Outlook Forum. Planned for February 20-21 next year, the event is the largest annual meeting of USDA. The 2020 event, themed “The Innovation Imperative: Shaping the Future of Agriculture,” will feature more than 30 sessions. The topics include innovations in agriculture, global trade trends, food loss and waste, conservation, and the science of food safety. USDA’s Chief Economist will unveil the outlook for U.S. commodity markets and trade in 2020 and discuss the U.S. farm income situation. USDA’s Agricultural Outlook Forum began in 1923 to distribute and interpret national forecasts to farmers in the field. The goal was to provide the information developed through economic forecasting to farmers so they had the tools to read market signals and avoid producing beyond demand. USDA says the event will be at the Crystal Gateway Marriott Hotel in Arlington, Virginia. The 2020 Forum’s program will be announced at the beginning of November. Registration information is available at usda.gov.
| Rural Advocate News | Friday October 25, 2019 |
Washington Insider: Economic Outlook Still Cloudy The tea-leaf readers are at it again and the administration’s pressure for lower interest rates continues to be intense. This week, Bloomberg reports that government bonds in Denmark, Germany, Japan, Sweden, and Switzerland carry negative yields — meaning it will cost money for investors to hold them to maturity. Thus, a “big question for fixed-income markets in 2020 is whether it could happen in the U.S., too.” Bond yields fall when their prices rise, and in August investors piled heavily into U.S. Treasuries, driving yields on the benchmark 10-year bond to a three-year low of 1.43% by early September. Yields have climbed back some since that time, to around 1.8%, but investors are still getting a razor-thin income for lending to the U.S. government. There are several reasons why that matters, the report says. First, the yields on these bonds help set the pace for long-term borrowing costs throughout the economy — but they also reflect investors’ sentiments about the economy. “And the story these low yields tell isn’t rosy,” Bloomberg says. One force pulling down bond yields has been the U.S. Federal Reserve’s recent cuts in key short-term interest rates that are added to stimulate the U.S. economy — in part because it’s worried about a slowdown in global growth. Meanwhile, the fact that 10-year bond investors are willing to be paid so little suggests they have little fear of inflation, which usually goes hand in hand with a strong expansion. If the Fed keeps cutting short-term rates back to near zero, where they were from late 2008 to 2015, and also restarts quantitative easing, “negative yields on U.S. Treasuries could swiftly change from theory to reality,” Joachim Fels, global economic adviser at Pacific Investment Management Co., said. Still, that scenario is an “outside shot,” Bloomberg says. Futures markets are anticipating more Fed rate-cutting, perhaps as soon as late October. But zero is several normal-size cuts of 0.25% away. Even more than usual, the direction of rates may depend on global politics. Bruno Braizinha, U.S. rates strategist for Bank of America Corp., says he sees “meaningful” risks to the economic outlook and even a chance that the 10-year yield may hover near zero by the end of 2020—but that a signed U.S.-China trade deal could go a long way toward halting that momentum. However, JPMorgan Chase & Co. strategist Jan Loeys foresees the possibility of the benchmark yield reaching zero by 2021, a full year quicker than he previously thought, citing trade tensions and worries about capital spending. Others think a big drop in yields from here may be hard to get. Margaret Steinbach, a fixed-income investment specialist at Capital Group, says, “Global investors are trying to figure out if we are in a midcycle slowdown heading into next year or the beginning of a more protracted downturn. In addition to borrowers, one more group should be paying attention to yields: investors in fixed-income funds. Since the drop in yields has gone along with rising values for existing bonds, many funds have recently enjoyed strong returns and that would continue if the march toward zero resumes. If the economy finds its footing and yields stabilize—or rise—gains like that will be a thing of the past. Still, consumers appear to be buoying up the economy — and are accounting for almost 70% of the U.S. economy — higher than in almost every other country. And while the propensity of Americans to shop has long been crucial for economic growth, it’s particularly the case now. That’s because companies have pulled back, hiring at a slower pace and postponing long-term investments, and business spending declined earlier this year for the first time since 2016. Manufacturing, which was booming two years ago, is constrained after contracting earlier this year. A good deal of the blame appears to fall on the Trump administration’s trade wars, which have increased costs and created uncertainty for businesses. Also, a “strong” dollar hasn’t helped. Despite all that, the overwhelming majority of economists, including Bloomberg’s, aren’t predicting a recession in the next 12 months. They are counting on Americans to keep spending—as in 2015 and 2016 when they powered the economy through weakness in the energy and manufacturing sectors. Continued strong household consumption reflects a simple reality, according to James Sweeney, chief economist at Credit Suisse Group AG. “Households are employed, and their incomes are growing,” he says. And inflation isn’t eating away at those gains and consumer confidence is near historic highs. Still, some analysts are emphasizing the economic “cracks,” Bloomberg notes and emphasizes that “more people are hunting for bargains now, which could foreshadow a pullback. There’s weakness across some discretionary sectors and prices in once-hot markets such as Los Angeles and New York are stagnant or in decline. Americans also have loaded up on credit card debt. “It’s just a matter of time until it catches up with people,” says Shah, who reckons that some 40% are on the edge of having to cut back on spending. So, we will see. The current outlook is increasingly complex, with many, many moving parts and an unusually complicated array of stake holders. Thus, although the situation remains extremely difficult, it is one producers should watch closely as these trends emerge, Washington Insider believes.
| Rural Advocate News | Friday October 25, 2019 |
Groups Express Dismay at Additional Brazil Moves on Ethanol Imports U.S. ethanol and corn interests are expressing even more disappointment at Brazilian decisions relative to their imports of U.S. ethanol. On August 31, Brazil announced it was increasing the tariff-free quota for imports of U.S. ethanol to 750 million liters (198 million gallons) from a prior 600 million liters (158 million gallons). Imports above that level would be subject to a 20% import tariff. Last week, Brazil also introduced a seasonality clause for the imports, saying that from Aug. 31, 2019 through Feb. 29, 2020, another 200 million liters (53 million gallons) could be imported without the 20% tariff, with 275 million liters (73 million gallons) able to imported each quarter without the tariff from March 1, to August 31, 2020. The quota reflects the cycle of when Brazilian producers are producing more domestic ethanol, according to the U.S. Grains Council. While expressing disappointment earlier this fall that the tariff-free quota was not eliminated and only increased, now U.S. interests complain the latest move to include seasonality provisions further restricts U.S. shipments. “The decision by Brazil to place seasonal restrictions on its tariff rate quota for U.S. ethanol is disappointing and puts up additional roadblocks to free trade, hurting consumers and our respective ethanol industries,” the U.S. Grains Council, Growth Energy and the Renewable Fuels Association said in a joint statement. “The action by Brazil to impose seasonal restrictions on the sale of ethanol does not create a case study in leading by example, but rather the opposite - it is up-ending real opportunities for free trade.”
| Rural Advocate News | Friday October 25, 2019 |
Grassley Accuses Democrats of Foot Dragging On USMCA House Democrats appear to be “foot-dragging” relative to the approval of the U.S.-Mexico-Canada Agreement (USMCA), Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said in remarks Wednesday in the Senate floor. “The Democratically controlled House of Representatives looks increasingly less likely to act this year on USMCA,” Grassley stated. “That threatens passage of the trilateral trade deal this Congress, as next year is a presidential election year.” Even though a group of House Democrats have been meeting with U.S. Trade Representative Robert Lighthizer and staff-level discussions have been taking place, Grassley questioned “how long” it will take to get a resolution on the issues Democrats want addressed. Grassley noted there has been no “date or timeline” for concluding those talks. “With every passing month, these seem less like good-faith assurances, and more like stalling tactics,” he alleged. “I am beginning to wonder if Democrats are interested in reaching a compromise at all. It’s looking more like they would prefer to deprive the administration of a victory, even if it comes at the expense of the American people.” Grassley’s comments come despite House Speaker Nancy Pelosi, D-Calif., Democrats want to get to “yes” on the trade pact as it is a positive overall for the U.S.
| Rural Advocate News | Friday October 25, 2019 |
Friday Watch List Markets Friday is a quiet day for reports with an index of U.S. consumer sentiment due out at 9 a.m. CDT. At 2 p.m. CDT, USDA will release its monthly cattle on-feed report for October 1. September placements are expected to be slightly higher, but the on-feed total down 1% from a year ago. DTN continues to sort the wheat from the chaff where it comes to rumors of Chinese ag purchases. Weather Dry and cool conditions in northern and central crop areas Friday will offer harvest progress. Rain will focus on the Delta and Deep South.
| Rural Advocate News | Thursday October 24, 2019 |
Coalition Challenges EPA on 2018 Refinery Waivers A coalition of renewable fuels and agricultural trade organizations filed a petition with the Washington, D.C., Court of Appeals on Tuesday. The petition challenges the process the Environmental Protection Agency uses to exempt certain unknown small refineries from their respective obligations under the Renewable Fuels Standard in 2018. The coalition includes American Coalition for Ethanol, Growth Energy, National Biodiesel Board, National Corn Growers Association, National Farmers Union, and Renewable Fuels Association. In the petition, the coalition noted that the EPA’s document outlining the waiver decisions was just two pages long. These two pages outlined the reasons behind granting 36 waiver exemptions to small refineries that didn’t then have to blend approximately 1.5 billion gallons of renewable fuel. The document doesn’t reveal details and contains just “bare-bones” reasoning behind the decisions. Furthermore, the groups point out that the decision didn’t even address whether or not the refineries were eligible for the exemptions. It also didn’t include an analysis of “disproportionate economic hardship” as the statute requires. The coalition says, “Even as the Trump Administration indicates it’s taking steps to account for future small refinery exemptions, the coalition remains concerned that the EPA’s abuse of the small refinery exemption program diverges from the spirit and letter of the Clean Air Act.” ********************************************************************************************** Grassley; Losing Hope on USMCA Passage This Year Senate Finance Committee Chair Chuck Grassley of Iowa says he’s “very worried about the U.S.-Mexico-Canada Agreement for the first time.” He tells Politico that he’s pessimistic that Congress will sign off on the deal before the end of this year. Grassley has maintained an optimistic outlook for some time as the Trump administration negotiated with House Democrats on potential changes to the deal. However, Politico says talks are stretching into month number four, and with only 22 legislative days left in 2019, Grassley is losing faith. He’s also asking U.S. Trade Representative Robert Lighthizer to not cave into Democrat demands. He says changing the trade deal’s labor, environmental, enforcement, and prescription drug provisions too much could put Republican support for the pact in jeopardy. As recently as July, Grassley had said he was “optimistic” after a 30-minute meeting with House Speaker Nancy Pelosi. The Trump Administration’s trade boss is scheduled to meet again with House Democrats this week in continuing efforts to push the legislation through Congress and get it to the president’s desk for his signature. ********************************************************************************************** Judge Says Amendment to U.S.-Mexico Sugar Deal is “Unlawful” A judge with the U.S. Court of International Trade struck down a sugar trade pact between the U.S. and Mexico that was renegotiated by the Trump Administration in 2017. Nasdaq Dot Com says the judge ruled the decision to amend a previous agreement between the two nations was unlawful. Specifically, Judge Leo M. Gordon says the U.S. Commerce Department’s determination to amend an agreement that suspended U.S. countervailing duties on Mexican sugar imports was unlawful. The Trump Administration’s Commerce Secretary, Wilbur Ross, had redone the 2014 trade deal, which some U.S. companies said had curtailed their sugar supplies. Trump said on Twitter back in 2017 that the agreement was “a very good one for both Mexico and the U.S.” A U.S. sugar company had challenged the 2017 amended agreement, alleging that competitors were using the trade talks to deny it access to cheap Mexican sugar imports. The U.S. Department of Commerce’s failure to maintain full records of all its meetings cannot be described as “harmless,” the judge said in his ruling. The decision will revert sugar trade terms between the U.S. and Mexico back to the 2014 agreement, and it marks a blow to the Trump Administration by overturning its very first trade agreement. ********************************************************************************************* Missouri Cattle Deal Leads to Murder of Wisconsin Brothers A Missouri man at the center of an investigation into the disappearance of two brothers from Wisconsin has been charged with murdering both of them. The brothers, Nick and Justin Diemel (DEE-mul), were visiting Garland Joseph Nelson on cattle business. They traveled to Missouri to collect a $250,000 check from Nelson for cattle that were currently in Nelson’s care. Nick Diemel, age 35, and Justin, 24 years old, were in Missouri when they went missing on July 21 after not making their return flight to Wisconsin. KMBC Dot Com says after the brothers were reported missing, police say Nelson gave different explanations of events that were an attempt to keep them from locating the missing brothers. In a court affidavit, authorities believe that Nick and Justin Diemel never left Nelson’s property and were killed there. Authorities found bloodstains on clothing belonging to Nelson, and DNA testing confirmed the blood was Nick Diemel’s. Nelson was charged with two counts of first-degree murder, abandonment of a corpse, tampering with physical evidence, unlawful possession of a firearm, as well as an armed criminal action. ********************************************************************************************** U.S. Cattlemen’s Association Fights for Truth in Labeling The United States Cattlemen filed a petition for rulemaking with the USDA’s Food Safety and Inspection Service to address “Product of the USA” and “Made in the USA” claims on U.S. beef. The USCA says since the repeal of Country of Origin Labeling (COOL) back in 2015, there is no clear definition of what constitutes a U.S. beef product. Cattle or beef imported into the U.S. that undergoes further processing or handling at a USDA-inspected facility can then be labeled as a “Product of the United States.” That’s even if the handling of the product inside U.S. borders was minimal. The petition says, “To eliminate the likelihood of confusion and to better inform consumers, USCA contends that voluntary labels indicating ‘Made in the USA,’ ‘Product of the USA,’ or similar content should be limited to beef from cattle born, raised, and harvested in the United States.” U.S. Cattlemen’s founding members were the first proponents of Country of Origin Labeling in the 2002 Farm Bill. The organization says it remains steadfast in its support for a truthful and transparent labeling program for U.S. beef products. ********************************************************************************************** CoBank: Hemp Offers Big Risks, Big Rewards to Agriculture Since the 2018 Farm Bill removed industrial hemp from the Controlled Substances Act, agriculture has never been more interested in adding hemp to its crop rotations. A lot of available information says there’s a large financial upside to the industry. Producers responded to that by tripling hemp acreage between 2017 and 2018. However, CoBank says that false, outdated, biased, or contradictory information can make it difficult to navigate the industry. CoBank’s Knowledge Division released a report that includes nine risks or uncertainties that face each of hemp’s three crops and markets, which include fiber, grain/seed, and CBD production. Crystal Carpenter, a specialty crop analyst, says,” Overall, CBD production has the highest level of risk across the board due to a range of factors. The industry could face many headwinds from seed quality, labor costs and availability, THC limit risks, as well as long-term acceptance by the Food and Drug Administration.” Carpenter adds that the risks of a new industry like hemp are compounded by potential legal and regulatory hurdles. The USDA is expected to release hemp regulations and guidance soon. The timing of future FDA regulation will be critical to long-term demand for CBD.
| Rural Advocate News | Thursday October 24, 2019 |
Washington Insider: Testing Fake Burgers If you think these are confusing times, you would both be right and have company. For example, a central idea of the food elitists in recent years has been built on commitments to the most natural, the simplest, the most traditional—and the least processed. All else was suspect, at the very least. So, how are we to interpret the recent tidal wave of market interest, as well as intense and approving reports in the urban press for the new “fake meat?” It is claimed to be a way to deal with global warming—based on extremely controversial claims by manufacturers and supporters and by the press including high profile urban magazines and dailies. And it is credited with many desirable characteristics, these reviews say, including its “almost meat” taste. So, it probably was inevitable that some group would run a test, and the New York Times reported just that this week. The report said that new generation of veggie burgers aims to replace the beefy original with “fake meat or fresher vegetables.” The report included a “blind tasting of six top contenders.” The article says that in only two years, food technology has moved consumers from browsing for wan “veggie patties” in the frozen aisle to selecting fresh “plant-based burgers” sold next to the ground beef. The Times says there is still a fight going on behind the scenes at the supermarket as meat producers sue to have the words “meat” and “burger” restricted to their own products as government standards have traditionally done. Even so, makers of meat alternatives like Beyond Meat and Impossible Foods are vying to claim growing shares of the global fast-food market as big players like Tyson and Perdue join the fray. However, some stakeholders are less enthusiastic – environmental and food scientists are insisting that we eat more plants and less processed food, while many vegetarians and vegans say the goal is to break the habit of eating meat, not feed it with surrogates. “I would still prefer to eat something that’s not lab-grown,” said Isa Chandra Moskowitz, the chef at the vegan restaurant Modern Love in Omaha, where her own burger is the most popular dish on the menu. “But it’s better for people and for the planet to eat one of those burgers instead of meat every day, if that’s what they are going to do anyway.” The new refrigerator-case “meat” products already comprise one of the fastest-growing segments of the food industry, the Times says. Some products are “proudly high-tech,” the Times notes, assembled from an array of starches, fats, salts, sweeteners and synthetic umami-rich proteins. They are made possible by new technologies that, for example, whip coconut oil and cocoa butter into tiny globules of white fat that give the Beyond Burger the marbled appearance of ground beef. Others are resolutely simple, based on whole grains and vegetables and reverse-engineered with ingredients like yeast extract and barley malt to be crustier, browner and juicier than their frozen veggie-burger predecessors. At the same time, some consumers are turning away from those familiar products, not only because of the taste, but because they are most often made with highly processed ingredients, the Times says. But how do all the newcomers perform? The Times restaurant critic and its cooking columnist lined up both kinds of new vegan burgers for a blind tasting of six national brands. Though many people have already tasted these burgers in restaurants, the Times said it aimed to replicate “the experience of a home cook with children.” In fact, the test produced a winner although it reported that it had a fairly high cost of almost $9 for a 12-ounce package. The test notes said that the winner had a “brawny flavor,” that convinced some of the children that it was real and that it “quite successfully replicates the bloody look and taste of a rare burger.” But meat it was not. The article say the ingredient list included water, soy protein concentrate, coconut oil, sunflower oil, natural flavors, 2 percent or less of: potato protein, methylcellulose, yeast extract, cultured dextrose, food starch-modified, soy leghemoglobin, salt, soy protein isolate, mixed tocopherols (vitamin E), zinc gluconate, thiamine hydrochloride (vitamin B1), sodium ascorbate (vitamin C), niacin, pyridoxine hydrochloride (vitamin B6), riboflavin (vitamin B2), vitamin B12. The other, lesser ranked products differed in several ways, including whether or not they included GMOs, a somewhat odd criterion. They generally cost between $4 and $6 for two four-ounce patties. Several of the “fake burgers” were less aimed at seeming like traditional burgers than at being better “artificial burgers.” So, we will see. It seems certain that the move to acceptance for a totally processed product will prove harder for the food elitists to accept than it has seemed so far and the product cost may discourage consumption for some – although cost has not slowed acceptance of organic products nearly as much as some expected. How well the products, with all their varied ingredients, fare under the microscopes of nutritionists and other analysts; and, how acceptable the corporate provenance of the manufacturers proves to be in the longer term may be a factor, as well. One thing is clear; these competitors are real, often well-funded, and seriously intend to take traditional markets wherever they can, and producers should watch their investments closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday October 24, 2019 |
Suit Filed on EPA’s 2018 Small Refinery Waiver Actions A suit has been filed by a coalition of biofuel supporters over the EPA rationale for granting small refinery exemptions (SREs) for the 2018 compliance year. The lawsuit was filed with the Court of Appeals for the DC Circuit. The groups cited an August 9 document from EPA detailing its rationale for resolving 36 SREs for 2018 in their lawsuit. “Unlike previous years, EPA’s entire decision document was only two pages long… In these short two pages, EPA purported to resolve 36 pending petitions for disproportionate economic hardship exemptions — a decision that exempted small refineries from having to blend almost one and a half billion gallons of renewable fuel,” the coalition wrote in a joint release. In the document, EPA explained that it granted full exemptions in cases where the Department of Energy had recommended only partial waivers. The court challenge was filed by American Coalition for Ethanol, Growth Energy, National Biodiesel Board (NBB), National Corn Growers Association (NCGA), National Farmers Union (NFU) and Renewable Fuels Association (RFA).
| Rural Advocate News | Thursday October 24, 2019 |
House Panel Plans Hearing On RFS Small Refiner Waivers A House Energy & Commerce subcommittee will hold a hearing Tuesday on the Trump administration’s use of small refinery exemptions (SREs) relative to the Renewable Fuel Standard (RFS). Chairman of the House Energy and Commerce Committee, Frank Pallone, D-N.J., and the chairman of the Environment and Climate Change Subcommittee, Rep. Paul Tonko, D-Ill., said in a statement that “the Trump administration’s abuse of EPA’s waiver authority is undermining the RFS program and devastating the renewable fuel industry.” House Agriculture Committee Chairman Collin Peterson, D-Minn., welcomed the hearing. "Our farmers and rural communities rely on the RFS for their economic viability, and EPA’s actions have done nothing but provide uncertainty and the potential for economic ruin," Peterson said. It is not yet clear who will be testifying on behalf of the administration.
| Rural Advocate News | Thursday October 24, 2019 |
Thursday Watch List Markets Thursday's reports start at 7:30 a.m. CDT with weekly export sales, U.S. jobless claims, U.S. durable goods orders and an updated U.S. Drought Monitor all due out at the same time. U.S. new home sales are released at 9 a.m. CDT, followed by natural gas inventory at 9:30 a.m. Weather remains critical with a wider coverage of freezing temperatures entering the latest forecasts. Weather Thursday will be rainy with some snow in the Southern Plains. Other crop areas will be dry. A cold temperature pattern will begin spreading over northern and central areas.
| Rural Advocate News | Wednesday October 23, 2019 |
EPA Finalizes Rule to Repeal WOTUS The Environmental Protection Agency Tuesday published the final rule repealing the Waters of the U.S. rule. The EPA and Army Corps of Engineers effort repeals and returns the law to provisions in place prior to 2015. The new rule will go into effect on December 23, 2019. However, legal challenges are expected from environmental groups. First announced in September, the American Farm Bureau Federation at the time called the rule a victory for farmers and ranchers. The EPA attributed the repeal to four factors. First, the agency says the 2015 rule did not implement the legal limits on the scope of the agency authority under the Clean Water Act as intended by Congress. EPA also says the Obama-era rulemaking failed to adequately consider states’ rights. The repeal is an effort by the EPA to avoid interpretations of the Clean Water Act that “push the envelope of their constitutional and statutory authority.” Lastly, the EPA and Army Corps conclude that the 2015 Rule’s distance-based limitations suffered from “certain procedural errors” and a lack of adequate record support. ************************************************************************************* EPA’s Wheeler: Response to RFS Proposal a “Knee Jerk” Reaction Environmental Protection Agency Administrator Andrew Wheeler this week downplayed criticism towards the EPA's small refinery exemptions proposal. Wheeler told reporters, "I think a lot of people who had a knee jerk reaction" because the rule "wasn't exactly what they were expecting," according to Politico. Wheeler, along with President Donald Trump, this week reiterated that the proposal would get the Renewable Fuel Standard to the 15 billion gallons of ethanol, as per requirements of the law. President Trump claimed during a Cabinet meeting Monday the rule was “fully approved,” while Agriculture Secretary Sonny Perdue suggested agriculture was confused about the new rule. Perdue stated, “Once they fully understand what you’ve done here, they’ll be fine as they see it implemented.” The ethanol industry called the rule a “bait and switch” attempt to avoid fixing demand problems created by an excess of small refinery waivers issued by the Trump administration. Growth Energy CEO Emily Skor says the proposal “will do nothing to bring back the ethanol plants that have shut down.” ************************************************************************************* USDA Announces More Rural Broadband Investments The Department of Agriculture Tuesday announced investments into a $9.7 million high-speed broadband project in South Carolina. The project will create or improve rural connectivity for 3,900 rural households in the state, and is part of the USDA ReConnect Pilot Program. USDA last Friday announced the first investment in the program, funding a $2.8 million infrastructure project in Tennessee to improve broadband access for nearly 350 households. Agriculture Secretary Sonny Perdue says of the program, “We know that rural communities need robust, modern infrastructure to thrive, and that includes having access to broadband e-Connectivity.” In March 2018, Congress provided $600 million to USDA to expand broadband infrastructure and services in rural America. Secretary Perdue announced the program in December 2018, called “ReConnect,” to help build broadband infrastructure in rural America. USDA received 146 applications this summer, requesting $1.4 billion in funding across all three ReConnect Program funding products: 100 percent loan, 100 percent grant, and loan-grant combinations. ************************************************************************************* NCBA Applauds Livestock Risk Management and Education Act The cattle industry welcomed legislation introduced this week that would provide grants to certain state land-grant universities to better equip livestock producers with risk management training. South Dakota Republican Representative Dusty Johnson this week introduced the Livestock Risk Management and Education Act in the House of Representatives. The National Cattlemen’s Beef Association says the bill “speaks directly to our core values as an industry,” adding the legislation gives producers the latest farm management resources and tools to help them navigate dynamic markets. NCBA announced support for the bill following its introduction. The legislation would authorize the National Institute of Food and Agriculture to provide resources to improve livestock producers’ knowledge of futures markets, and to help them better manage market volatility. Representative Johnson says an understanding of futures contracts and risk management strategies will allow producers to better anticipate cattle prices. Republican Representatives Liz Cheney of Wyoming and Frank Lucas of Oklahoma joined Johnson in introducing the bill. ************************************************************************************* Legislation Introduced to Help Support Rural Hospitals New legislation in the Senate would support rural health care providers to deliver high-quality care. Introduced by Kansas Republican Pat Roberts and Nevada Democrat Catherine Cortez Masto. the Rural ACO Improvement Act would fix a glitch in the program, according to the lawmakers. The legislation would change the accountable care organizations, or ACO, reimbursement formula which inadvertently punishes rural health care providers when they reduce costs. The bill would put rural providers on a level playing field with their urban counterparts and ensure that all providers are rewarded equally for their work to deliver value in health care. ACOs are made up of groups of health care providers that share responsibility for providing coordinated care to patients to improve health care quality and reduce unnecessary spending. When ACO providers work together to improve care and lower costs below what Medicare expected to spend, Medicare saves money. The health care providers in ACOs are then able to receive a share of those savings. ************************************************************************************* USDA Publishes Pumpkin Production With Halloween approaching, many consumers are searching for the nearest pumpkin patch. Meanwhile, the Department of Agriculture just updated pumpkin production data, showing production is widely dispersed throughout the United States. All U.S. states produce some pumpkins, but according to the 2017 U.S. Census of Agriculture, about 62 percent of pumpkin acres were grown in only ten States. Illinois is consistently the nation's largest producer of pumpkins, the majority of which are used for pies and other processed foods. Pumpkin production from the other states surveyed annually by USDA is primarily destined for decorative, or carving, use. While 2019 production has not yet been surveyed, early feedback indicates an average year for Illinois and California with a healthy crop. Retail prices for pumpkins typically fluctuate from week to week leading up to Halloween. At the end of the first week of October, average retail price for jack-o-lantern style pumpkins was $3.42 per pumpkin compared to $3.32 for the same week in 2018.
| Rural Advocate News | Wednesday October 23, 2019 |
Washington Insider: Brighter Trade Outlook President Donald Trump told the Cabinet on Monday that “negotiations over an initial trade deal [with China] are advancing and raising expectations” and that a trade deal could be signed at a global leaders’ meeting next month in Chile.” For example, Bloomberg quoted the President as telling the Cabinet, “they have started the buying,” during Monday’s White House meeting, referring to Chinese purchases of U.S. agriculture products that he has pushed as part of a deal. “I want more,” he added. Earlier in the week, Commerce Secretary Wilbur Ross said that it was more important to get details of the agreement right than it was for the President to sign it at an expected meeting with Chinese President Xi Jinping next month. Stocks in Asia gained Tuesday as positive signs regarding the trade talks emerged ahead of earnings from some of the world’s biggest companies. S&P 500 futures rose suggesting there is scope for the underlying gauge to extend gains after it surpassed 3,000. Ross also said on TV that the “actual meat” of the agreement would come in two additional phases yet to be completed. While the White House touted a preliminary agreement earlier this month, officials in Beijing have yet to confirm that anything is set in stone. U.S. officials say they expect China to significantly increase purchases of American agricultural commodities and agree to some intellectual property, financial services, and currency concessions. In exchange, the U.S. paused a tariff increase due to hit in the middle of October, just ahead of Christmas shopping season. The agreement is being seen by some observers as a pause in the 18-month trade war that has hurt the economies of both countries – but which falls short of the dramatic overhaul of Chinese economic policy the administration has sought. The agreement also doesn’t address Huawei Technologies Co., which has pushed forward with a global effort to sign 5G commercial contracts even as the U.S. seeks to persuade other countries to blacklist the firm. In addition, Reuters was reporting earlier in the week that India’s Trade Minister Piyush Goyal had said that the broad outline of a trade deal with the United States has been worked out. He suggested that an announcement would follow soon. The two countries have been locked in trade disputes for months, “slapping higher tariffs on each other’s products and the U.S. withdrawing a key concession to India,” Reuters said. Washington has been especially concerned about Indian policies that mandate foreign firms to store more data locally and restrict the way U.S. e-commerce giants such as Walmart-owned Flipkart and Amazon.com operate. Goyal told a business conference that he was hoping to meet U.S. Trade Representative Robert Lighthizer soon. “We have almost resolved the broad contours of what we are going to announce. I don’t see any great difficulty in closing the gap on the first announcement,” Goyal said at the U.S.-India Strategic Partnership Forum (USISPF). The deal under discussion includes lowering tariffs on U.S. farm produce while giving Indian pharmaceuticals faster approval to enter the U.S. market. India dominates the world’s generic drugs market and the United States is among its top importers. “With regards to the trade talks between India and the U.S., the Commerce and Industry Minister said that things are on the right track and India is looking to the U.S. for technology, innovation, skills and quality education,” a government statement quoted Goyal as saying. According to USISPF estimates, India-U.S. bilateral trade is projected to grow to $238 billion by 2025 from $142.1 billion in 2018. The expected boosts in trade and investments are expected to include sectors such as defense, commercial aircrafts, oil and LNG, coal, machinery and electronics, Reuters said. India is aiming to promote automotive, pharmaceuticals, seafood, IT and travel services to the U.S. market. Goyal indicated that India and the U.S. “must look at a larger trade agreement,” the government statement said, without elaboration. So, we will see. Clearly, the negotiating progress in these talks being pointed to is in early, vulnerable stages similar to those in which disruptions have come before with little warning. But even fragile signs of agreement are better than the alternative and should continue to be watched closely as they approach completion, Washington Insider believes.
| Rural Advocate News | Wednesday October 23, 2019 |
Repeal of Obama-Era WOTUS Rule Published The rule to repeal the 2015 Waters of the U.S. (WOTUS) rule has been published in the Federal Register by the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers. The agencies said they were taking the action as they view the 2015 rule as not implementing legal limits on the scope of the agencies’ authority, the 2015 rule did not give Congress adequate weight in the process, that the 2015 rule and more. The final rule from the agencies indicates that the 2015 WOTUS rule will be replaced with the portions of law under the Clean Water Act that “existed before the amendments promulgated in the 2015 rule.” The action will become effective December 23. EPA and the Corps are also continuing to work on a replacement for the 2015 WOTUS rule.
| Rural Advocate News | Wednesday October 23, 2019 |
Commerce Reopens Dumping Probe On Imports of Mexican Tomatoes The Commerce Department is reactivating an anti-dumping case against tomato imports from Mexico, just one month after signing a deal to resolve the dispute. The suspension agreement reached remains in effect, Commerce said Monday. The investigation was continued at the request of Red Sun Farms and the Florida Tomato Exchange (FTE). The antidumping investigation by Commerce’s U.S. International Trade Commission (USITC) had been nearly complete when it was shelved after a new suspension agreement was reached August 20 and finalized September 19. FTE said it was requesting the investigation be reopened amid evidence the Mexican tomato industry was looking to launch legal challenges to the new agreement and could even seek to withdraw from it. Commerce is required under the Tariff Act of 1930 to resume the antidumping investigation upon the request of interested parties when there is a suspension agreement in place. The USITC will hold a public hearing on the situation October 24.
| Rural Advocate News | Wednesday October 23, 2019 |
Wednesday Watch List Markets The U.S. Department of Energy will release the only report Wednesday, its weekly energy inventories at 9:30 a.m. CDT, which includes ethanol. The latest weather forecasts and any trade news with China also remains interesting for markets, while row crops work through a slow harvest pace. Weather Rain and snow are in store for the northern Plains Wednesday, disrupting harvest. Dry conditions elsewhere will favor progress. Temperatures will be chilly north and mild south.
| Rural Advocate News | Tuesday October 22, 2019 |
Mexico: USMCA Would Provide Certainty in Global Trade A government official from Mexico says global trade uncertainty is another reason the U.S. and Canada should ratify the U.S.-Mexico-Canada Agreement. Mexico’s Finance Minister last week noted global trade was a common topic during the fall meetings of the International Monetary Fund and World Bank in Washington. Arturo (Are-tur-roh) Herrera says that in a world that is "probably facing some uncertainties for a while," USMCA is "going to help attract investments to the region," according to Reuters. Herrera says the ongoing trade war between the U.S. and China, now 15 months long, is partly to blame for a sharp slowdown in global growth. USCMA replaces the North American Free Trade Agreement and was ratified by Mexico this summer. The U.S. and Canada have yet to ratify the agreement, and some fear if Congress doesn't act soon, the deal will be stalled by the 2020 elections. Democrats in the House of Representatives are set to continue negotiations with the White House this week. However, Congress is running out of working days to pass the agreement this year. ************************************************************************************* Ross: China Phase One Must be Right Agreement U.S. Commerce Secretary Wilbur Ross Monday suggested the phase one agreement with China doesn’t have to be ready to sign next month. Speaking on Fox Business Network, Ross says, “It has to be the right deal, and it doesn’t have to be in November.” President Donald Trump has indicated the deal would be ready to sign at the November APEC summit. The agreement includes the intent by China to purchase up to $50 billion worth of U.S. agricultural goods over the next two years. However, China has said it won’t move forward with significant purchases unless Trump agrees to cancel a planned round of tariff increases set for December. The comments from Ross seem to suggest the phase one agreement may not be as solid as previously portrayed. Agriculture is described best as cautiously optimistic that the phase one agreement can be completed, and that China massively increases its purchases of U.S. farm products. However, China recently purchased soybeans from Brazil, an uncharacteristic move for this time of year. ************************************************************************************* Democrats Switch Focus on USDA Moves Key Democrats in Congress appear to be shifting focus on the Department of Agriculture agency relocations. USDA is moving the Economic Research Service and National Institute for Food and Agriculture to the Kansas City region, and many employees are fleeing. Last week, Democrats in the House of Representatives announced they are still “upset” with the relocation, but are now focused on making sure the agencies continue to do their jobs, according to the Hagstrom report. Stacy Plaskett, a Democrat from the U.S. Virgin Islands, chairs the House Agriculture Subcommittee on Biotechnology, Horticulture and Research. During a hearing, Plaskett noted that ERS has appropriated funding to support 329 employees, but currently, a total of 214 positions are vacant, a vacancy rate of 65 percent. At NIFA, 264 of 344 jobs are currently vacant, a vacancy rate of over 76 percent. She told a USDA representative she expects "ERS and NIFA to quickly be restored to their former prominence.” While the agency moves are underway, USDA has yet to announce permanent office space locations for either agency. ************************************************************************************* GasBuddy: China/U.S. Talks Behind Gas Price Volatility Average fuel prices declined slightly again for the second straight week as farmers attempt to harvest their crops. The national average price of gasoline posting a drop of 0.7 cents over the last week to $2.63 per gallon according to GasBuddy data. Meanwhile, the average price of diesel fell 1.1 cents to $2.98 per gallon. While farmers are in the fields and dealing with trade uncertainties and a challenging harvest, GasBuddy says the ongoing trade war with China is providing more overall volatility to gas and crude oil markets, at a time of year when the market typically sees prices steadily fall. Patrick DeHaan (De-hawn), head of petroleum analysis for GasBuddy, says “I can’t remember an autumn where we saw so many factors that could impact prices so quickly and in such different directions,” adding “expect this roller coaster to continue.” Meanwhile, data from the Energy Information Administration showed oil inventories surging nearly ten million barrels as refined products inventories moved lower as refinery maintenance season continues. ************************************************************************************* Beef Industry Long Range Plan Task Force Begins Year-long Process The Beef Checkoff is undergoing a year-long process to determine direction for the organization over the next five years. The long-range strategic planning process for the beef industry is underway, a process that pulls together key leaders from all over the country representing different sectors of the beef business. Updated every five years, the Beef Industry Long Range Plan is the standard the beef checkoff focuses on as one strategic direction, identifying key areas to advance beef demand. Since 1995, industry leaders have gathered to develop an aligned, comprehensive plan with the goal of increasing consumer demand for beef. The leaders are brought together to study and compile major areas of opportunity for the next five years. The current plan, in place since 2016, focuses on increasing beef demand and growing consumer trust. The newly appointed committee will convene over the next several months and consider all aspects of the industry from production trends, economic factors, foreign markets, consumer trends, and the competitive climate. ************************************************************************************* USDA Honors 25 Years of Tribal Land-Grant Universities The Department of Agriculture Monday honored the 25th anniversary of legislation that recognized 29 tribal colleges and universities as land-grant institutions. Signed on October 20, 1994, the Equity in Educational Land-Grant Status Act enabled tribal colleges and universities to receive federal support and train the next generation of agricultural professionals. Mike Beatty, Director of USDA's Office of Partnerships and Public Engagement, says, "Tribal colleges and universities draw on the strength of traditions while preparing graduates who can contribute to their communities." USDA says tribal colleges and universities play a significant role among tribal nations. Today there are 36 federally recognized tribal colleges and universities designated as land-grants. The 1994 institutions are the latest additions to the land-grant university system. The Morrill Act of 1862 created land-grant institutions to give working-class citizens equal access to higher education, focusing on agriculture and mechanical arts. A second Morrill Act of 1890 authorized land-grant institutions for African Americans.
| Rural Advocate News | Tuesday October 22, 2019 |
Washington Insider: US Diplomatic Corps Problems and Concerns Usually there is not a great deal of sympathy in Washington for the State Department’s diplomats who are often seen as detached and sometimes condescending. However, in a somewhat unusual take on current Washington goings on, The Hill is reporting this week that the administration's perennial push for steep budget cuts has led to a large exodus of experienced senior staffers and assertions of mistrust there that have has sent morale to an unprecedented low. For example, the President fired a senior diplomat “after a whisper campaign mounted by his personal lawyer, Rudy Giuliani” – and abandoned steadfast allies in the Middle East at the behest of Turkey's government, The Hill said. The “weight of those events is taking a startling and measurable toll” on American foreign relations and on the diplomats’ ability to carry out policy. The diplomats themselves are increasingly concerned that the White House and senior State Department leadership “do not have their backs,” particularly after the “whisper campaign” that ended in the recall of Marie Yovanovitch as U.S. ambassador to Ukraine, The Hill said. In interviews, half a dozen current and former senior foreign service officers told The Hill that experiences over the last few weeks have undermined what little faith they had left in the Secretary of State. Secretary Pompeo arrived in Foggy Bottom after “a trying year under his predecessor who tried to slash his own budget and let senior civil and foreign service members walk out the door,” The Hill sources said. Former Secretary Rex Tillerson’s proposed cuts were so dramatic that Congress refused to allow them. Secretary Pompeo and his top deputy held several town-hall meetings and distributed videos of his foreign trips in an effort to rebuild the State Department’s “swagger.” When he came in, “people were absolutely willing to give him the benefit of the doubt,” said Laura Kennedy, a former U.S. ambassador to Turkmenistan and deputy assistant secretary of state for European and Eurasian Affairs in the George Bush administration. Now, however, the Secretary’s alliance with the President is increasingly seen as having come at the cost of his ties with career officials. He participated in the July 25 phone call between the President and Ukrainian President Volodymyr Zelensky – when President Trump promised that Yovanovitch was “going to go through some things.” Last Wednesday, Secretary Pompeo’s former top aide, Michael McKinley, told House lawmakers that Pompeo “did nothing” when McKinley urged him to offer Yovanovitch a show of public support. Ambassadors serve at the pleasure of the president, the Secretary said on TV and when a president loses confidence in an ambassador it's not in the best interests of that ambassador, the State Department or America for them to continue to stay in their post. Still, current and former officials have panned Pompeo's handling of the situation, The Hill said. “The irony of the White House phone call was that rooting out corruption has been at the heart of American policy toward Ukraine for years – and Ambassador Yovanovitch had made fighting corruption a cornerstone of her years in Kiev,” The Hill said. Now, some foreign service officers who pride themselves on carrying out orders from Washington, regardless of whether those orders are given by a Democratic or Republican administration, worry that “they serve at the pleasure of a president who views them as members of a so-called deep state.” Also, internal State Department tensions between political and career appointees are rising, The Hill said. Yovanovitch’s firing has underscored the tensions and a lack of trust between career officials and political appointees. Sources told The Hill, they “felt they were being scrutinized by political appointees who could report disloyalty to senior officials.” The staff reductions that began under Tillerson have left gaping holes that remain today, The Hill said. Eight of the 28 assistant secretary positions are headed by acting secretaries who have not been confirmed by the Senate. Two more are vacant. One of six undersecretaries is acting, and two more posts – overseeing public diplomacy and civilian security, democracy and human rights – are vacant. A number of bureaus are being run by career people, who have not been nominated to those jobs. “It sends a very strong signal of lack of trust and respect,” The Hill said. Amid the departure of experienced senior officers, and further White House efforts to slash the State Department's budget, The Hill found “worrying signs that the ranks of the foreign service are not being replenished.” The number of applicants who took the Foreign Service exam, the first step toward becoming a career foreign service officer, has fallen every year since 2009 – but the recent drops have been even more precipitous. In 2018, the number of people taking the FSO test was less than half the number who applied in 2013, according to the American Foreign Service Association. The ag attaches who play strong and continuing roles in support of U.S. ag product trade are very senior Foreign Service officials in many cases, and many operate very large programs – so the ag stake in a strong U.S. diplomatic corps is large. Any policy changes that could weaken that role, or the active presence of those officials in far flung foreign embassies should be watched closely by producers as this debate continues, Washington Insider believes.
| Rural Advocate News | Tuesday October 22, 2019 |
Questions Continue On USDA Pork Export Sales Data USDA’s Weekly Export Sales report for the week ended October 10 included huge pork export sales figures, but USDA cautioned the data did not reflect purchases made just during the reporting week covered by the update. “The information in the export sales report for the week ending Oct. 10, 2019, accurately reflects what was reported to USDA by U.S. exporters. This week’s report includes a significant quantity of pork sales for the current marketing year that may have occurred in previous weeks but were not previously reported.” The agency has since said that if it happens again in the future, it will put a notation in the report explaining the situation.
| Rural Advocate News | Tuesday October 22, 2019 |
US, China Both Say Progress Being Made In Talks Officials from both the U.S. and China are indicating there has been progress on the phase one agreement between the two sides. Chinese Vice Premier Liu He offered positive signals that talks with the U.S. are making “concrete progress” and both sides are working toward a partial trade deal, but he added negotiations must be on an equal basis. “China and the U.S. have made substantial progress in many aspects and laid an important foundation for a phase one agreement,” Liu said at a virtual reality conference in Nanchang Saturday. He reiterated that China is “willing to work in concert with the U.S. to address each other’s core concerns on the basis of equality and mutual respect.” Meanwhile, President Donald Trump Friday said he thinks a trade deal between the two countries will be signed by the time the Asia-Pacific Economic Cooperation meetings take place in Chile on November 16-17. "I think it will get signed quite easily, hopefully by the summit in Chile, where President Xi and I will both be," Trump told reporters at the White House, without providing details. “We are working with China very well," Trump also said. Deputy-level talks have taken place already this week and top-level talks are expected later this week as the two sides keep working toward finalizing the phase one deal.
| Rural Advocate News | Tuesday October 22, 2019 |
Tuesday Watch List Markets As usual, Tuesday is a quiet day for reports, but U.S. existing home sales are due out at 9 a.m. CDT. At 2 p.m. CDT, USDA releases a monthly cold storage report of frozen meat inventories. Weather updates remain important for understanding harvest status and any trade news pertaining to China still gets attention. Weather Dry, breezy and cool conditions will cover most crop areas Tuesday. Rain will focus on the Great Lakes and Southeast. Harvest remains difficult in northern areas following heavy precipitation to start the week.
| Rural Advocate News | Monday October 21, 2019 |
Next Round of Trade Aid Is Still “TBD” The U.S. and China recently reached a partial trade deal that included the promise of large agricultural purchases by China. Because of that, the U.S. Department of Agriculture is deciding on whether or not it will go through with the next round of trade relief payments to farmers for their 2019 production. USDA Deputy Secretary Stephen Censky tells Politico that the department is looking to make a final decision in the “very near future.” After a recent Senate Ag Committee hearing, Censky said, “I think we’re very much aware that producers have been impacted by the trade retaliation, they’ve been impacted by weather, and low incomes.” The Ag Department is currently dividing up the $14.5 billion it set aside for direct payments in three installments. The second and third rounds will be available in November and January if they’re needed. The Trump Administration claims that Beijing will soon ramp up its U.S. ag purchases to about $40 billion per year. That could make it more difficult for the USDA to justify giving out the remainder of the $14.5 billion set aside for this year’s direct aid program. ********************************************************************************************** Vietnam Trade Mission Already Generating New Sales Companies on a trade mission to Vietnam are reporting as much as $5 million in new sales. That report came in last week from USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney. McKinney says the new numbers come from just 14 of the 34 companies traveling with him and are the result of 665 meetings they held with buyers from Vietnam, Thailand, and Myanmar. Other companies will be reporting new sales early this week. During a phone conference with reporters, McKinney said U.S. agricultural exports to Vietnam have grown “incredibly” since 1995 when the United States re-established diplomatic relations with Vietnam following the war. Back then, Vietnam ranked 95th in the listing of countries that imported food from the U.S. The Hagstrom Report says Vietnam now ranks number seven on that same list with $4.2 billion in imports. McKinney notes a lot of future potential for growth as 60 percent of the country’s population is under 30 years old. As an example of how the trade relationship has grown, McKinney says Vietnam has increased its imports of U.S. cotton to more than $1 billion per year. During the phone call from Vietnam, McKinney said the overall relationship between the U.S. and Vietnam is “really, really outstanding and getting better.” ********************************************************************************************** U.S., European Equipment Manufacturers Ask For Trade Negotiation The American Association of Equipment Manufacturers and the Committee for European Construction Equipment issued a joint statement asking American and European government leaders for a friendlier trade environment. After the recent World Trade Organization ruling on European Airbus subsidies, the U.S. announced tariffs of $7.5 million in European goods, including some construction equipment. “Equipment manufacturers in the U.S. are proud to stand with our European partners in calling on the U.S. and EU policymakers to affirm their commitment to a strong transatlantic relationship,” says Kip Eidenberg, AEM VP of Government Affairs. “Our partnership has brought considerable benefits to consumers, workers, and businesses of all sizes on both sides of the Atlantic.” He also says supply chains drive 80 percent of global trade, and tariffs on European manufacturing products will hurt American businesses that source parts and components from across the EU. “We’re asking Washington and Brussels to recognize the importance of our transatlantic alliance and the negative impacts that tariffs have on equipment manufacturers,” Eidenberg adds. ********************************************************************************************* Vietnam ASV Outbreak Slowing The government of Vietnam is urging its pig farmers to start rebuilding their herds as the spread of African Swine Fever is starting to show some signs of slowing down. Vietnamese officials are anticipating a surge in pork demand just in time for the Lunar New Year coming up in January. The disease was first detected back in February of this year and has since appeared in all 63 provinces across the country. Reuters said Vietnam was forced to cull more than five million pigs or roughly 18 percent of the total hog herd. That action has since driven up pork prices in the country nearly 70 percent. The head of the Vietnamese Department of Livestock Production tells Reuters that, “Farmers’ efforts to enhance hygienic conditions on farms have helped put a brake on the spread,” while adding that improving weather conditions have helped too. They’re also encouraging larger-size pork farms that meet hygiene requirements to expand their pig production efforts. Vietnamese government officials say the outbreak “has initially been contained and showing signs of slowing down,” but didn’t offer any extra details. While ASF is deadly to pigs and there is no available vaccine, the sickness isn’t harmful to human beings. ********************************************************************************************** Lawmakers Urge USDA to Prioritize CRP State Acres for Wildlife South Dakota Senator John Thune and Minnesota Senator Amy Klobuchar led a bipartisan group asking USDA Secretary Sonny Perdue to prioritize enrollment and implementation of the State Acres for Wildlife Enhancement (SAFE) initiative within the Conservation Reserve Program. The senators wrote a letter saying they’re “concerned that the decision to limit the practices and associated cost-share incentives available in recent continuous sign-ups, and excluding wildlife practices like SAFE, will decrease landowner interest in CRP and the overall effectiveness of the program.” They say the statutory purpose of CRP is to “conserve and improve the soil, water, and wildlife resources of enrolled land and address issues raised by state, regional, and national conservation initiatives.” The letter says land enrolled in SAFE serves as an example of how USDA, landowners, and other partners can work together to address all three resource concerns on the same acre of enrolled land. The letter to Perdue was signed by another 15 senators from both sides of the political aisle. ********************************************************************************************** USCA Says Washington Grizzly Bear “Restoration” Unnecessary The United States Cattlemen’s Association is less-than-thrilled with the North Cascades Mountain Grizzly Bear Restoration Plan Draft Environmental Impact Statement. The plan seeks to bring in as many as 200 grizzly bears to the region, despite serious stakeholder concerns, especially when it comes to safety. USCA Public Lands Committee Co-Chair Jack Alexander says, “The original intent of the Endangered Species Act was to serve as a means of ensuring the survival of specific species that faced the serious threat of extinction. We have not yet witnessed the utilization of the law as a tool to promote range expansion for any non-threatened species, as is happening with this ‘plan.’” He points out that the International Union for Conservation of Nature has listed the grizzly bear as a “Species of Least Concern,” due in no small part to its population of over 55,000 in North America. “In short, the basis for this ‘restoration plan’ fails to take into account local stakeholder concerns regarding the safety and well-being of their families, neighbors, and livestock,” Alexander says. “USCA wholly rejects the findings in the draft environmental impact statement and encourages the agencies to reconsider its ‘plan’ to attempt to ‘restore’ a grizzly bear population into the Northern Cascades Ecosystem.”
| Rural Advocate News | Monday October 21, 2019 |
Washington Insider: Political Fights and Threats to the Congressional Schedule Political uncertainties of many kinds and types are rising just now, and not just in trade policy, the Washington Post reported over the weekend. The report said that Congress is "heading toward a multicar collision that could leave a lot of collateral damage if lawmakers aren't careful." It notes that the list of must-do items between now and year's end is "long and expansive, touching on every aspect of the federal government and beyond." One result, the Post says, is that while chances for a government shutdown before Thanksgiving were once thought impossible but now, with no progress reported on any of the 12 spending bills, "the risk grows each week." This could mean a showdown that would be "far more sweeping than the 35-day partial shutdown earlier this year," the Post said. In addition to the always tough budget fights, many non-budget Congressional authorities are expiring or lapsing, ranging from some foreign surveillance laws to the potential reinstatement of a very unpopular tax on medical devices. The result is that while the "rational minds" in Washington see each of these issues as separate and distinct from the impeachment fight, the administration "has increasingly demonstrated" in the past few weeks that it regularly sees issues as "one large negotiation, linking together seemingly disconnected threads into one massive ball of legislative wax." The article says the president's blowup with House Speaker Nancy Pelosi, D-Calif., on Wednesday over the crisis in northern Syria was clearly linked to her threat to impeach the president. At his rally in Dallas on Thursday night, he presented a "greatest hits parade of issues" he has long pushed, especially border wall funding and grievances against his political opponents including Rep. Adam Schiff of California, who chairs the Democratic House Intelligence Committee. On Friday, at a photo opportunity to promote the first an all-female spacewalk, the president took a reporter's question about his acting chief of staff's conflicting answers on Ukraine policy and turned it into "a montage of ongoing crises." For example, he discussed his talks with Turkey's president, Recep Tayyip Erdogan, about a pause on attacking Kurds in northern Syria, railed against the Schiff-led investigation and claimed to have "taken control" of oil in the Middle East, the Post said. This is leaving Congressional leaders "fearful that any of these must-pass bills could turn into a hostage situation" if the administration sees it as possible leverage against impeachment, the Post says. The article discussed several must-pass items developed by a political intelligence firm, Cowen Washington Research Group. It included several numerous controversial concerns, including completion of the National Defense Authorization Act, which sets Pentagon policy and has been approved every year since 1946 -- but also the 12 bills that fund all federal agencies, which expired Oct. 1 but have been given a temporary extension until Nov. 21. The list didn't include approving the a new North American trade pact—which both sides agree that waiting too far into next year will probably torpedo its chances of passing. The most obvious obstacle created by these political tensions is simply "time," the Post says. The House schedule already has two week-long breaks between now and Christmas, leaving fewer than 30 planned days in session -- with quite a few of those days actually half-days to allow for travel. The Speaker then must decide when to hold the House debate. At this time, she has not posted a deadline for completion, although most insiders believe it could wrap up by early February when voters start casting ballots in the 2020 presidential primary. Senate Majority Leader Mitch McConnell, R-Ky., has indicated that if the House votes to impeach before or right after Thanksgiving, he would like to use those next several weeks before Christmas to hold a Senate trial—which, by rule, would begin each day just after lunch, six days a week, the Post says. Technically, there would be a couple of hours each morning to process legislation, but it is likely that only "pretty noncontroversial bills" would be considered even if the usual long procedural votes and debate time were waived or shortened. In addition, some of the current must-pass legislation has potential for side confrontations. For example, the 2017 tax bill included $17 billion worth of breaks that will expire at year's end, including the paid family leave measure and legislation that ended a tax on medical devices that was originally imposed in the 2010 Affordable Care Act. Under normal circumstances, those popular credits would just be extended. However, following Wednesday's blowup between the president and the speaker, the Cowen group's analysts warned that anything could happen. "From a domestic political perspective, recent events in Washington are likely to cast a negative pall over the remainder of the year," the Cowen analysts wrote last week. It is clear that political tensions are high and rising, especially those concerning trade but also many other economic policies as well -- issues that should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Monday October 21, 2019 |
Rep. Neal Pleased With USMCA Process So Far Mexican President Andrés Manuel López Obrador sent a letter to House Ways and Means Chairman Richard Neal, D-Mass., outlining steps Mexico is taking to strengthen labor standards relative to the US-Mexico-Canada Agreement (USMCA). "I am very pleased with Mexico's demonstration of good faith," Neal said. He is among the Democrats working with the administration on USMCA issues. "Given the high labor and enforcement standards Democrats require from the new NAFTA agreement, I am eager to receive further details from USTR regarding the Trump administration's preparation to meet our priorities," Neal said in a statement. Neal met with U.S. Trade Representative Robert Lighthizer and said that Democrats are still looking for assurances on enforcement. Asked whether the two sides might be able to reach a handshake deal by Thanksgiving, Neal replied: "I would like to think that, but I think that even based on what we discussed here today ... that there's still a ways to go." We expect the House will vote on USMCA most likely in December but it could still take place in November.
| Rural Advocate News | Monday October 21, 2019 |
USDA's Censky Says Remaining MFP Payments Decision Coming Soon USDA Deputy Secretary Steve Censky said $5.5 billion in Market Facilitation Program (MFP) 2 payments have been made to farmers since the Farm Service Agency began issuing checks the week of August 19. USDA is deciding whether to go through with the next installment of trade relief payments to farmers for 2019 production. Censky said the department is aiming to make a final call "in the very near future... I think we are very much aware that producers have been impacted by the trade retaliation, they have been impacted by the weather, low incomes," Censky said. MFP2 payments will potentially be in three installments: The first round became available over the summer, while the second and third tranches will be available in November and January, if warranted. Meanwhile, Senate Ag ranking Member Debbie Stabenow, D-Mich., told Censky the trade mitigation program is upsetting the delicate balance lawmakers attempted to strike in the 2018 Farm Bill relative to spreading federal dollars evenly across the ag sector. Our expectation is the second and third installments of MFP2 payments will be made.
| Rural Advocate News | Monday October 21, 2019 |
Monday Watch List Markets Getting deeper into harvest season, traders will be watching the latest weather forecasts and checking USDA's Crop Progress report at 3 p.m. CDT for updates on row crop harvest progress and winter wheat planting. Weekly export inspections are due out at 10 a.m. CDT and any mention of trade negotiations with China still gets attention. Weather Showers and thunderstorms are in store for the Northern Plains, northern and eastern Midwest, and the Delta Monday, disrupting harvest. Dry and windy conditions elsewhere will favor harvest progress.
| Rural Advocate News | Friday October 18, 2019 |
China Confirms Phase One Agreement Ag Purchases Chinese officials confirmed this week they are working on finalizing a “phase one” agreement with President Donald Trump that includes significant purchases of U.S. ag products. An official from China’s Commerce Ministry confirmed the purchases to reporters, but did not provide details on how much U.S. ag products China will buy. The spokesperson says, “China will increase U.S. farm purchases based on domestic demand and market principles,” adding the U.S. will “provide favorable conditions.” China will move forward with the purchases if President Trump cancels a planned round of tariff increases in December. President Trump says the agreement included Chinese purchases of U.S. ag products worth $40-50 billion over the next two years, and suggested the initial agreement could be finished and signed next month. Agriculture is taking a wait and see approach. Missouri Farm Bureau President Blake Hurst told Yahoo! Finance, “The challenge we have is that we’ve been promised a lot of things throughout these negotiations and not all of them have come to fruition.” ************************************************************************************* U.S. Dairy Thanks Trump for EU Trade Tariffs The National Milk Producers Federation Thanked President Donald Trump for including European dairy products on a new tariff list. The organization Thursday sent a letter to Trump to “commend his Administration for its excellent judgment” for including the products. The tariffs stem from a U.S. World Trade Organization complaint about illegal subsidies to Airbus. The WTO approved the tariff list this week. However, Italy requested an agreement on a solution, rather than U.S. tariffs, during a White House visit. NMPF urged President Trump to stand with dairy farmers "and resist Italy's request that he side with the Italian farmers and cheesemakers who have blocked” U.S. cheeses from store shelves in the European Union. NMPF says the U.S. is running a $1.5 billion dairy trade deficit with Europe because of unfair trade practices that largely block U.S. access. EU policies such as Italian-initiated bans on American-made cheeses mean the EU can ship $1 billion in cheese each year while U.S. cheese exports to the EU are at $6 million. ************************************************************************************* Fed Beige Book: Farm Finances Deteriorating The Federal Reserve Bank’s Beige Book updated this week suggests farm financial conditions are deteriorating. The report, published eight times a year, says the agriculture sector remained weak, while crop and cattle prices remained relatively stable. Bankers reported modestly higher loan demand and an improvement in loan quality. However, many Midwest districts report lower crop production and yield forecast. Lenders remain concerned as the ongoing impacts of adverse weather, weak commodity prices and trade disruptions, will continue. However, the Kansas City Federal Reserve Bank did note that the distribution of 2019 USDA trade relief payments could provide additional short-term support to farm cash flows. The Federal Reserve Bank of San Francisco reports lumber producers are scaling back due to lower exports, and apple growers report oversupply. And California farmland prices are decreasing due to current trade issues. Meanwhile, the Federal Reserve Bank of Texas reported trade issues were still very prominent on the minds of agricultural producers, but some banks reported more optimism regarding a resolution. ************************************************************************************* Stabenow Questions USDA SNAP Change During Senate Hearing Senator Debbie Stabenow Thursday questioned the Department of Agriculture over its categorical eligibility rule proposal for the Supplemental Nutrition Assistance Program. USDA this week published an analysis finding the rule would remove nearly one million children from automatic enrollment for free school meals, and 40,000 would no longer be eligible for free meals. During a Senate Agriculture Committee hearing on farm bill implementation, Stabenow alleged that USDA “has continued to ignore what we’ve put in the farm bill,” which she says rejected changes to SNAP. Deputy Agriculture Secretary Stephen Censky says the changes are to ensure “eligibility requirements are being enforced.” Censky cited criticism over USDA's handling of eligibility by the Government Accountability Office, adding USDA "needs to do a better job" of making sure eligibility requirements are being enforced, and that states are not finding loopholes to increase enrollment. Stabenow says the analysis published this week by USDA, is flawed, adding "I would strongly urge you to reconsider" the proposal. USDA has reopened the comment period for the rule. ************************************************************************************* Organic Corn and Soybean Farmers Face Sharp Production Declines Spring weather has taken a toll on U.S. organic commodity producers, shown by a significant drop in overall corn and soybean production for 2019, according to a new report. Organic industry data service Mercaris (Meh-CAR-us) just released its 2019 fall Organic Commodities Outlook. The report predicts a 12 percent year-over-year decline in organic corn production and a 14 percent decline in organic soybean production due to challenges during spring planting. In the Corn Belt, the report estimates organic wheat production will see a 19 percent decline. However, overall U.S. organic wheat production is predicted to increase seven percent over 2018 thanks to gains in areas outside of the Corn Belt, namely the High Plains and West regions. Meanwhile, organic livestock production growth is expected to slow but will still see a one percent increase overall. Because of that, imports should bridge the gap between domestic organic feed demand and U.S. 2019 production. Mercaris, who published the report, is a data services firm launched in 2013 focused on growing demand for organic foods. ************************************************************************************* USDA Declares United States Free from Plum Pox Virus The Department of Agriculture Thursday declared the U.S. free of plum pox virus. USDA undersecretary for marketing and regulatory programs Greg Ibach made the declaration at a ceremony, saying the 20-year fight against the disease “is officially over.” Ibach says USDA has eliminated the disease, protection the $6.3 billion U.S. stone fruit industry. USDA calls plum pox is a serious disease impacting stone fruit such as plums, almonds, and peaches. No other countries where plum pox disease is known to occur have successfully eradicated the disease. Plum pox does not kill infected trees outright. However, it causes severe yield losses and greatly reduces the marketability. The virus spreads over short distances by aphids and over long distances via the movement of infected nursery stock or by grafting infected buds onto healthy trees. The disease was first detected in Pennsylvania in 1999. A USDA program helped test, remove and avoid infected trees.
| Rural Advocate News | Friday October 18, 2019 |
Washington Insider: Questioning the Get Tough Trade Policy There have long been concerns in some quarters about the basis for the Trump administration’s “get-tough” policy with China, and other. This week, a number of industry and media sources are persistently questioning what the longer-term impacts on the domestic and global economies may be. For example, the New York Times said on Thursday that the current “agreement in principle,” with China has yet to be finalized — and likely would not roll back the hundreds of billions of dollars in tariffs that China and America have placed on each others’ products. In addition, it noted that the president is also considering escalating the trade fight to other fronts, as it prepares to tax $7.5 billion worth of wine, cheese, aircraft and other European goods. And, the administration says it will decide next month whether to impose tariffs on imported cars from European and other countries. On Wednesday, President Trump discussed the possibility of additional tariffs on the European Union if the bloc is unwilling to reduce the EU-U.S. trade imbalance — but said “for right now, we’re going to try and do it without that,” although he continues to argue that “the United States is not being treated fairly.” The Times also commented especially on the president’s “unpredictable” approach, and said that new, limited deals with South Korea and Japan and the proposed “new” NAFTA will come at a cost. The recent and proposed “tit for tat” tariffs have raised prices for businesses, uprooted global supply chains and created crippling uncertainty for companies, delaying investment and hiring. The pain has spread beyond the United States and China and is exacerbating a global economic slowdown, particularly in Europe. “Economists warn the damage is likely to outlast any interim trade deal with China,” the Times said. The article mentioned several fairly gloomy, new forecasts, including a World Bank expectation that next year’s growth would be below previous estimates of 2.6%. It acknowledged that trade uncertainty remains a drag on the global economy along with the possibility of a “hard” Brexit resulting from Britain’s plan to leave the European Union. There could be reason for optimism in 2020, it said, “if there can be a reduction in uncertainty and more clarity on the outlook on trade and that includes U.S.-China trade but that also includes “the global trade environment itself.” Not all of the negative economic effects are a result of the trade war, the report said. But it asserts that policymakers say Mr. Trump’s trade policies “could help tip the global economy into recession.” The Federal Reserve has begun cutting interest rates to try and insulate the American economy against the effects of President Trump’s trade war, but its officials have warned that their power is limited and that economic damage is likely to persist, particularly if uncertainty continues and tariffs remain in effect. The president and his trade advisers continue to insist that China is paying the cost of the tariffs, not American businesses or consumers. But a new paper by researchers at Harvard University, the University of Chicago and the Federal Reserve Bank of Boston suggests that businesses and consumers in the United States are feeling an impact from the trade fight and that the pain could escalate and that additional costs could be passed on to American consumers in the months to come. President Trump agreed to forgo a tariff increase planned for Oct. 15. But another round of tariffs is still on the table for December, the Times said, in addition to those already existing on $360 billion worth of Chinese goods. And, while the president “has floated the idea of signing an agreement with his counterpart, Xi Jinping, at a summit of global leaders in mid-November,” the deal has yet to be finalized and analysts say there are plenty of ways the fragile agreement could crumble, as happened in May. Secretary Mnuchin told NYT on Wednesday that he has no plans to travel to China for more negotiations, and that there has been no decision as to whether the existing tariffs or those scheduled to take effect in December would be reversed if a deal is reached. In addition, he said issues such as intellectual property protections, forced technology transfers and how to enforce an agreement are still being worked out. The lack of a final deal, let alone a comprehensive agreement that ends the tariff war, is enough to stymie global growth for the foreseeable future, economists and other analysts say. “The U.S. is attempting to pluck low-hanging fruit first, rather than hold out for a more complete trade deal,” Julian Evans-Pritchard, an economist at Capital Economics, wrote in a note to clients. “But reaching an agreement on the more contentious structural issues remains an uphill battle and it still seems more likely than not that trade tensions will escalate again before long.” So, we will see. Clearly, new questions and concerns about the administration’s focus on tariffs can be expected to intensify, especially if the economy continues to slow. This is a high stakes fight producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Friday October 18, 2019 |
Disaster Aid Funding Soon: Perdue USDA Secretary Sonny Perdue said this week that U.S. farmers should see disaster aid funding soon. “Farmers who are eligible for individual disaster aid that signed up last month, the money should start flowing in this week.” Perdue said earlier this week in Georgia, adding USDA is working with the states on block grants to cover damage to non-traditional items like timber and animal facilities. However, farm and commodity groups have notified lawmakers that the $3.050 billion in funding for Wildfire and Hurricane Indemnity Program Plus (WHIP+) will not likely come close to needs, a development that was widely expected given the amount of funding and potential claims expected to be made.
| Rural Advocate News | Friday October 18, 2019 |
Pelosi Comments Still Positive On Prospects For USMCA While most have focused on Democratic leaders walking out of a meeting with President Donald Trump where both sides have traded accusations about someone suffering a “meltdown,” House Speaker Nancy Pelosi, D-Calif., made additional statements that indicate she is still working toward House approval of the U.S.-Mexico-Canada Agreement (USMCA). "We will do what we need to do for the good of the American people, and that has nothing to do with him," Pelosi said, with “him” being Trump. "There may be some collateral benefit to him when we successfully achieve some things for the American people. But there's no reason not to do it because there's collateral benefit to him." U.S. Trade Representative Robert Lighthizer was scheduled to meet with House Democratic working group on USMCA Thursday, and some indicate there could be multiple meetings in the next week on the matter. Members of the group and Speaker Pelosi continue to insist that progress is being made.
| Rural Advocate News | Friday October 18, 2019 |
Friday Watch List Markets USDA's weekly report of export sales is due out at 7:30 a.m. CDT, followed by the Conference Board's index of leading indicators at 9 a.m. As usual, weather forecasts will be watched for harvest opportunities with more rain expected in the central Corn Belt Monday. Any comments of trade with China also remain of interest. Weather Friday will be dry in all primary crop areas. Conditions favor harvest progress outside of the northwestern Corn Belt areas affected by last week's snowstorm.
| Rural Advocate News | Thursday October 17, 2019 |
Pelosi Hopeful for Path to Passing USMCA House Speaker Nancy Pelosi says work continues on the U.S.-Mexico-Canada Agreement, while impeachment proceedings move forward in the House of Representatives. Still, a fear persists outside of Washington, D.C., that USMCA may not reach the finish line because of the full schedule in Washington. Speaking to reporters earlier this week, Pelosi reaffirmed that House Democrats are working towards a solution, saying, "we hope to be on a path to yes." Pelosi says Democrats are still waiting on assurances about enforceability. Those in Washington, both Democrats and Republicans, remain optimistic House Democrats can reach an agreement with the Trump administration to pass USMCA. The Trump administration threatened when the impeachment inquiry was announced that “House Democrats destroyed any chances of legislative progress,” including USMCA, which will replace the North American Free Trade Agreement. Mexico’s President recently pledged to sign a letter to U.S. lawmakers urging passage of the agreement. Mexico ratified USMCA this summer, and Canada is expected to do so following its federal elections later this month. ************************************************************************************* Biofuels, Oil Industry, Both Disapprove of RFS Proposal Neither the biofuels industry nor the oil industry seems happy with the latest Renewable Fuel Standard proposal to address waived biofuels. The Environmental Protection Agency released its supplemental rule proposal this week, directing the EPA to use a three-year average to determine waived volumes to be reallocated, based on recommendations from the Department of Energy. Biofuels groups charge the proposal provides a loophole, as the EPA has previously ignored similar Energy Department recommendations. National Corn Growers Association President Kevin Ross says the proposal “fails to provide the assurance needed that EPA’s practices for granting waivers will change going forward.” Meanwhile, the American Petroleum Institute released a statement following the announcement, alleging the Trump administration, once again, decided to “play politics with our fuel system.” API says the proposal includes “misguided reallocation of volumes,” that will “punish oil companies to comply with the RFS.” API adds that “If this arbitrary policy was conceived to help farmers, it provides no immediate relief.” ************************************************************************************* Grassley, Tester, Introduce Rural Stress and Mental Health Legislation Two farm state Senators are promoting legislation that seeks to curb farmer suicides. Announced last month, the Seeding Rural Resilience Act would offer ways to help farmers and rural America deal with stress. The bill was formally introduced this week by Senator John Tester, a Democrat from Montana, and Iowa Republican Senator Chuck Grassley. Grassley and Tester say the legislation is receiving praise from farm and mental health organizations. Tester says the legislation “puts us on track towards giving farmers the resources they need” to cope with stress in a tough economy. Federal data shows the suicide rate is 45 percent higher in rural America than in urban areas. The bill would provide Department of Agriculture employees voluntary stress management training, and for a partnership with the Department of Health to create a $3 million public awareness campaign, and create a path to identify the best practices for responding to farm and ranch stress. ************************************************************************************* Legislation to Improve Weather Forecasting Models Introduced New legislation introduced in the Senate seeks more accurate weather forecasting. The Learning Excellence and Good Examples from New Developers, or LEGEND Act, would require the National Oceanic and Atmospheric Administration to make certain weather models public and seek innovations to improve weather models. The bill was introduced by Republican John Thune of South Dakota, and Brian Schatz, a Democrat from Hawaii. Thune says the legislation builds on his efforts to improve weather forecasting during his time on the Commerce Committee, saying the “livelihood of farmers and ranchers” often depend on accurate forecasts.” Thune says it’s “important that we find innovative ways to improve government forecasting capabilities.” Included in the legislation is a requirement for the U.S. Weather Research Program to establish the Earth Prediction Innovation Center, which was intended to advance weather modeling. The legislation would clarify and strengthen those efforts, according to Thune. When fully established, the program will provide a platform for collaboration to improve operational models and advance NOAA’s forecasting skills. ************************************************************************************* Chinese Consumer Pork Prices Surge The National Bureau of Statistics of China Wednesday reported that pork prices in the nation have increased 69.3 percent, compared to last year. China released its September Consumer Prices report, which details food prices, among other general items. Overall, food prices have increased by 8.4 percent since last year. African swine fever has taken a toll on pork production in China as experts believe the virus has wiped out as much as half of the nation’s pork herd. Pork is a staple of the Chinese diet, and China is the top pork producing nation in the world. Reuters reports that Chinese importers recently made a record large weekly purchase of American pork last week, ahead of trade talks with the United States. The purchases included 18,800 metric tons of pork for shipment this year, and 123,300 metric tons of pork for shipment in 2020. Meanwhile, Chinese imports of pork from all sources is up 43 percent this year, compared to 2018. ************************************************************************************* NCGA Commits to Focus on Aflatoxin The National Corn Growers Association just announced new research grants to help manage and solve aflatoxin issues. The grants are part of a long-term initiative by the organization to help farmers eliminate aflatoxin. The Aflatoxin Mitigation Center of Excellence Research Program will again offer grants to researchers for projects focused on solving aflatoxin issues. The grants, which will be awarded to researchers focusing on six priority areas, were designed by southern corn checkoff boards to bring a unified approach to funding research projects across the region, and will favor research teams that include members from multiple states. NCGA Corn Productivity and Quality Action Team Chair Charles Ring, a corn grower in Texas, says, “Working together, we can improve the tools available for aflatoxin control and get real results that farmers can see in their fields.” Letters of intent from researchers and collaborators not exceeding the $75,000 per year limit will be accepted until October 25.
| Rural Advocate News | Thursday October 17, 2019 |
Washington Insider: Growth Drug Use Under Pressure In a development largely below the radar for most urban media, Food Safety News says this week that a mega Pork Producer JBS USA has banned the use of growth drug ractopamine in the hogs it purchases because it sees a growing trade opportunity with China “where the drug remains prohibited.” Ractopamine is used by many producers to raise leaner pigs. However, that practice remains highly controversial and is banned in the EU and China who neither allow its use of or tolerate residues in imported meat. JBS, owned by JBS SA based in Brazil, hopes to help China fill a huge gap created by the African swine disease by shipping it ractopamine-free pork. Other companies have similarly limited the drug’s use to allow competition in more export markets. JBS, based in Greeley, Colo., limited its use of the growth drug on its own in 2018. The company now says it won’t buy hogs from any farm that uses it. FSN notes that China, the world’s leading pork producer and consumer, is being hammered by African swine fever—a disease that “is not harmful to humans but is always deadly to pigs.” And, by dropping use of the feed additive entirely, the company expects to accelerate competition for pork exports there. There is no vaccine for African swine fever, which broke out in China a year ago. The World Organization of Animal Health reports it has since spread to more than 50 counties, which normally account for about 75 percent of the planet’s pork production. FSN expects that the dramatic decline in the global supply of hogs will create enough demand to pay JBS to drop ractopamine to compete more broadly. JBS USA sells pork under brands including Swift and Swift Premium and until now has focused mainly on the domestic market, leaving China mainly to Smithfield Foods which is owned by China’s WH Group and bans ractopamine on company-owned and contract farms. “We are confident this decision will provide long-term benefits to our producer partners and our industry by ensuring U.S. pork products are able to compete fairly in the international marketplace,” JBS USA said. Tyson Fresh Meats, the beef and pork subsidiary of Tyson Foods, Inc. (NYSE: TSN), today announced plans to prohibit the use of ractopamine in the market hogs it buys from farmers beginning in February 2020. Ractopamine is a feed ingredient that helps increase the amount of lean meat in hogs. While it is FDA-approved and considered safe for use, some countries such as China prohibit the import of pork from hogs that have been given the product. Tyson Fresh Meats has been offering a limited amount of ractopamine-free pork to export customers by working with farmers who raise hogs without it, and by segregating the animals and products at processing plants. However, these programs no longer adequately meet growing global demand. "We believe the move to prohibit ractopamine use will allow Tyson Fresh Meats and the farmers who supply us to compete more effectively for export opportunities in even more countries," stated Steve Stouffer, President, Tyson Fresh Meats. Most of the hogs delivered to the company's pork plants are purchased from about 2,000 independent farmers. The growth additive has frequently been in the news. It was approved by FDA in 1998 to improve the rate at which animals convert feed to lean meat and is used in other countries, including Canada and Brazil, for livestock production. However, China, Russia, the European Union and several other countries continue to question its safety and refuse to accept meat from animals that use the drug. Since 2012, the standards-setting Codex Alimentarius Commission, the UN food standards-setting body, has established residue limits for the drug but animal rights and food safety groups have frequently petitioned FDA to lower the residue limits and have called for more study of the drug’s effects on human health and animal welfare. However, trade disputes have continued in recent years and a number of politicians including Sens. Chuck Grassley, R-Iowa and Amy Klobuchar, D-Minn., have urged the U.S. to “demonstrate to Russia that its newfound commitment to WTO membership includes adherence to science-based standards, such as the CODEX MRL for ractopamine.” And, the growth drug continues to be controversial both in export markets and among American activists groups such as the Center for Food Safety, the Center for Biological Diversity, and the Sierra Club who argue that the FDA has not done enough to test the potentially harmful effects of it on people, animals, and the environment. So, we will see. The decisions by JBS and other US companies, as well as pressure from potential export markets certainly is upping the ante on the US industry, if not on the FDA. In addition, the meat industry is under increasing political and social pressure from many directions these days, and it would seem prudent to continue to undertake hard-nosed evaluations of product quality as fights for competitive position continue both domestically and abroad, Washington Insider believes.
| Rural Advocate News | Thursday October 17, 2019 |
USDA Mulling Adding Revisions to Corn Crop in Sept. Stocks Update USDA is considering adding revisions of the previous year’s corn crop to its September quarterly stocks report, beginning in 2020, Lance Honig, crops branch chief for USDA’s National Agricultural Statistics Service. He made the remarks on the sidelines of a meeting for USDA data users. USDA currently updates its corn crop estimates in an annual crop production summary released in January. Honig also said USDA rarely makes big revisions to a previous year’s corn crop. USDA already makes revisions of the previous year’s soybean crop in the September stocks report. In fact, revisions are the norm. It has revised its estimate of the previous year’s soybean crop in 18 of the past 20 September stocks report.
| Rural Advocate News | Thursday October 17, 2019 |
Focus Continues On Purchases of US Ag Goods By China More doubt and questions surface on China’s potential buys of $40 billion to $50 billion in U.S. farm products, with questions on how much, the time frame for purchases, and what the U.S. might have to give in return for China committing to purchase a quantity of US farm products. Chinese negotiators continue to say purchases must be based on actual demand and at fair-market prices. It will take up to five weeks to see the official language of any conclusion to Phase One agreements, as both sides meet and work on language to be hopefully signed by President Donald Trump and Chinese President Xi Jinping on the sidelines of the November 16-17 APEC meeting in Chile. Sen. Chuck Grassley, R-Iowa, said Tuesday he wanted to get more details on what the agreement entails. Chinese Foreign Ministry spokesman Geng Shuang told reporters Tuesday that Beijing would step up purchases of US agricultural products but provide details. He said that China’s understanding of the latest trade talks was “consistent” with what the U.S. described. Some indicate that China could attach conditions to a written pact that would allow it to buy less farm products than the US expects, such as by stretching out the time frame for purchases. China could also insist on language saying that prices for US goods are reasonable and that Chinese purchases comply with the rules of the World Trade Organization, which bans managed trade. This is why the official Phase One language regarding farm product purchases will be key.
| Rural Advocate News | Thursday October 17, 2019 |
Thursday Watch List Markets Thursday's schedule is busy and different due to Columbus Day. NOAA will update its 30-day and 90-day forecasts early. Weekly jobless claims and September U.S. housing starts are set for 7:30 a.m. CDT, followed by September industrial production at 8:15 a.m. The U.S. Energy Department releases weekly natural gas inventory at 9:30 and other weekly energy inventories at 10 a.m. CDT, including ethanol. USDA's weekly export sales report gets pushed to Friday. Weather All primary crop areas will be dry Thursday. This drier pattern will offer improved harvest conditions.
| Rural Advocate News | Wednesday October 16, 2019 |
EPA Biofuels Proposal Comes up Short for Ethanol Industry The Environmental Protection Agency Tuesday released its plan to change the Renewable Fuel Standard regarding small refinery exemptions. However, biofuels proponents don’t approve of the changes. The National Biodiesel Board says in a statement the notice “contains a never-before-discussed proposal to estimate small refinery exemptions, with no assurance that the estimate will come close to actual exemptions.” The EPA says the notice does not change the proposed volumes for 2020 and 2021. Instead, it proposes and seeks comment on adjustments to the way annual renewable fuel percentages are calculated. Specifically, the agency is seeking comment on projecting the volume of gasoline and diesel that will be exempt in 2020 due to small refinery exemptions based on a three-year average of the relief recommended by the Department of Energy. However, Renewable Fuels Association CEO Geoff Cooper called the terms of the announcement baffling, because the proposal uses “the very same DOE recommendations that EPA blatantly ignored over and over.” The EPA will hold a public forum on October 30, 2019. ************************************************************************************* China Wants More Phase One Talks Optimism over a trade breakthrough with China is fading as China wants more talks this month to work out the details of the “phase one” agreement. Bloomberg News reports China may send another trade delegation to Washington, to finalize a written agreement. A statement from China’s Commerce Ministry noted “substantial progress” in the talks last week on agriculture and other provisions. However, China wants President Donald Trump to cancel plans to increase tariffs in December. The phase one agreement could be signed at the Asia-Pacific Economic Cooperation summit next month. Treasury Secretary Steven Mnuchin earlier this week suggested work in the coming weeks to ready the agreement, adding, if not, the U.S. will impose the December tariff increase. As part of the agreement, President Trump says China will purchase $40-50 billion of U.S. agricultural goods over the next couple of years. Trump said this week, “They’re going to have to buy more land fast and lots of tractors,” regarding the economic impact of the agreement for farmers. ************************************************************************************* Manufacturing Groups, Businesses, Ask Congress to Pass USMCA A group of business organizations wants Congress to ratify the U.S.-Mexico-Canada Agreement. Led by the National Association of Manufacturers, the group of more than 350 associations and businesses sent a letter to Congress urging approval of the agreement. The groups support the call by saying, "Canada and Mexico alone, despite representing less than four percent of the global economy, buy more U.S.-manufactured goods than our next 11 trading partners combined." Mexico's government has ratified the USMCA. It now awaits approval from lawmakers in Canada and the United States. Canada is expected to ratify the agreement following its national elections later this month. The coalition says USMCA would spur economic growth and provide much-needed certainty for manufacturers across North America. The letter also says the deal includes “best-in-class” intellectual property rules, and would expand U.S. manufacturing access to Canada and Mexico, while providing a level playing field. Signatories on the letter include international agribusiness and food companies, along with animal feed and food manufacturing associations. ************************************************************************************* Study Shows Pig Farmers Improving Their Environmental Footprint Through Efficiencies A new environmental study shows that pig farms are generating less manure nutrient content associated with odor. Data gathered from more than 106,000 samples at 182 North Carolina farms shows significant reductions in ammonia levels and manure nutrient content. The improvements are attributed to gains in feed efficiency, which means it takes less feed to raise a pig. The Pork Checkoff, which funded the study, announced the findings Tuesday. The study found that North Carolina pig farmers have significantly increased feed efficiency over the past 17 years. Long-term, continuous improvement has resulted in trending reductions in nutrient content in manure lagoons at the farms. Specifically, data gathered from the participating North Carolina pig farms showed a reduction of 35 percent to 78 percent in the nutrient content from hog finishers in primary lagoons, and a reduction of 17 percent to 68 percent in primary lagoons for sow farms. Also, the study showed a reduction of 22 percent to 54 percent in ammonia levels. ************************************************************************************* Growth Energy Announces New Chairman of the Board Following a year of milestones for the biofuels industry, Growth Energy this week announced the election of Dan Sanders as the association's new chairman of the board of directors. Sanders is the vice president of Front Range Energy, a 48 million gallon ethanol production facility located in Colorado. Front Range Energy joined Growth Energy in 2008, when the organization was founded. As chairman, Sanders succeeds Jeff Broin, CEO of POET, LLC, who held the position since the association's inception in 2008, and through the successful campaign to achieve year-round E15, the original goal on which the association was founded. Upon reaching the industry milestone, Broin announced in September he would step down as chairman, but plans to remain an active member of the Growth Energy Board. Sanders previously served as vice-chair of the board, which will now be filled by Mitch Miller. Miller is the chief executive officer and managing director for Michigan’s Carbon Green BioEnergy. ************************************************************************************* Illinois Ag Department Announces New Dicamba Restrictions The Illinois Department of Agriculture recently announced additional label restrictions for the 2020 growing season for dicamba. Agriculture Director John Sullivan announced the rules due to a dramatic rise in the number of off-target complaints received during the 2019 growing season, adding “the department is taking action to reduce those numbers." The new restrictions halt the use of dicamba after June 20, 2020. The new regulations also prohibit the application of dicamba if the air temperature at the field at the time of application is over 85 degrees Fahrenheit, or if the National Weather Service's forecasted high temperature for the nearest available location for the day of application exceeds 85 degrees. Applicators also must maintain the label-specified downwind buffer between the last treated row and the nearest downfield edge of any Illinois Nature Preserves Commission site. In addition to these provisions', applicators must follow the federal guidelines when it comes to applying dicamba, including taking an annual certified applicator training course.
| Rural Advocate News | Wednesday October 16, 2019 |
Washington Insider: New Weed on the Block Amid trade wars and rumors of even newer fights, Politico is focusing this week on hemp — the “new weed on the block,” it says. The report follows a group of producers from Kentucky that are looking for a “high-profit alternative to tobacco” and see hemp’s promise in markets for fiber, livestock feed and in food supplements. However, early adopters found both production and marketing “very tricky,” Politico says. The producers had known that “hemp and marijuana are versions of the same plant: cannabis.” The only difference is that marijuana contains much higher concentrations of the chemical THC, which causes a psychoactive high. Still, cannabis can be used for other purposes and the federal government has decided that cannabis that has only a small amount of THC, no more than 0.3%, is a different crop. In response, Politico thinks that Kentucky farmers — and others — are experimenting with the creation of a “whole new industry.” All forms of cannabis used to be illegal to cultivate. But to help early adapters, Congress legalized hemp production nationwide as part of the 2018 farm bill. The crop offers a new source of income for some who have losses because of the trade war with China, dropping commodity prices and a series of natural disasters. But, the change also is creating new challenges including the need to keep a close eye on crops to make sure that their THC level doesn’t creep above 0.3%. Even where marijuana is legal, farmers who accidentally grow marijuana can’t just sell it — THC levels for marijuana are typically around 15% to 20%, much higher than for hemp. Also, control of THC levels in growing plants is a delicate, high-stakes task, one of many issues that have popped up as the country grapples with how to grow and regulate this brand new product. USDA is under pressure to replace the patchwork of state regulations on measuring THC with national testing standards the department says it plans to implement this fall, ahead of the 2020 growing season. And, there is also the problem of market focus. Hemp proponents like those Politico followed in Kentucky try distinguish between policies for hemp and marijuana—but marijuana advocates have made it clear that they want legal hemp to be a step toward legalizing all varieties of cannabis. So far, that doesn’t seem to be happening but Politico thinks it remains unclear how the growing popularity of hemp will factor into that broader debate. And, across the country, the exploding number of hemp farmers and products containing hemp oil are quickly normalizing consumption of cannabis products “complicating an already complex legal and policy debate,” Politico said. Hemp has a range of uses, but most farmers grow it to produce cannabidiol, or CBD — a compound that doesn’t get you high but is the key ingredient in trendy new products from lotions to gummy vitamins. Companies claim it can alleviate anxiety, pain and treat other health conditions. It’s also trapped in a regulatory black hole at FDA which hasn’t explained how it plans to regulate these products. Despite that uncertainty, hemp harvests have exploded. In 2014, the first year of Kentucky’s program, farmers planted just 33 acres. This year, Kentucky approved the planting of 56,000 acres across the state, Politico said. Politico also thinks “hemp enthusiasm” comes partly from its profitability. It can bring in as much as $2,200 per acre—and has helped farmers feel more comfortable about growing a plant related to marijuana, said Jeff Sharkey, a lobbyist in Florida on behalf of the medical marijuana and hemp industries. Also, the support of Senate Majority Leader Mitch McConnell and endorsement of hemp by the farm bill certainly helps, Sharkey added. Hemp is hardy enough to grow in many climates and soils: Montana, Colorado and Oregon also rake in sizable harvests and many other states are experimenting with it. Still, hemp farmers risk more than a failed crop and lost cash if their plants test “hot.” They could also get into legal trouble. A Minnesota farmer in June was charged with two felonies after his crop was seized by authorities and tested at THC levels of 3%—10 times the legal threshold for hemp. And, when it comes to sampling practices and standards, every state takes its own approach. Holly Bell, the architect of Florida’s hemp market, said the state has learned from other states not to just focus on the farming side of hemp but also the processing, manufacturing and distributing components of the industry. A USDA spokesperson told POLITICO that the draft rule regulating hemp is under review by OMB and the department intends to have the regulations in effect this fall. “USDA staff are exercising due diligence to address multiple requirements for hemp,” including maintaining records, designing inspections and developing THC testing standards, among other marketing and handling concerns,” he said. So, we will see. Certainly, the development of a new, profitable ag product is welcome—but some of the steps to understanding both the production and marketing challenges are formidable. The development of equitable and effective rules will be a significant challenge, one producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Wednesday October 16, 2019 |
Mexico’s President Urges Pelosi to Speed Up USMCA Process Mexico’s president wants Pelosi to accelerate USMCA ratification vote. Mexican President Andres Manuel Lopez Obrador said Friday he sent a letter to House Speaker Nancy Pelosi, D-Calif., asking her to speed up the process of ratifying the U.S.-Mexico-Canada Agreement, (USMCA), according to reports out of Mexico City. Obrador, in a press conference, said the letter was a follow up to a visiting delegation of House Democrats last week, according to a translation published in the New York Times. “There is agreement, and I took the opportunity to send Mrs. Pelosi a letter explaining that it is in the interest of the three peoples, the three nations, that this deal is approved,” Obrador said. Meanwhile, indications are that the votes are there for ratification of the trade deal in both the House and Senate. A vote is possible as soon as November, but it may take into December. Contacts believe Pelosi may not have the majority of her membership that will vote for ratification, but will have enough of them, along with House Republicans, to clear the measure.
| Rural Advocate News | Wednesday October 16, 2019 |
China, US Appear on Same Page Regarding Phase One Trade Deal Attention on the announcement Friday (October 11) that the U.S. and China had reached agreement on phase one of a trade deal continues to garner attention. Treasury Secretary Steve Mnuchin Monday commented on the situation Monday in an interview with CNBC, telling the news service that the two sides “made substantial progress last week in the negotiations. We have a fundamental agreement, it is subject to documentation, and there is a lot of work to be done on that front.” He said the deal includes “very significant structural issues in agriculture” as well as the promise of buying up to $50 billion of U.S. commodities. China had “some concerns as to whether our farmers can meet those numbers. We think they can,” Mnuchin said. “The next phase is deputy-level calls that will be going on this week,” Mnuchin observed. Mnuchin and U.S. Trade Representative Robert Lighthizer “will have a principal-level call next week with the vice-premier. My expectation is [that] we will have the deputies meet between now and Chile, and my expectations are that we will be meeting with the vice-premier in Chile before the presidents meet to finish the deal,” the Treasury chief said. From the Chinese side, Foreign Ministry spokesman Geng Shuang told reporters that what the U.S. said is "accurate" regarding phase one of the deal and that the U.S. and China have the same understanding of the situation.
| Rural Advocate News | Wednesday October 16, 2019 |
Wednesday Watch List Markets Wednesday is a light day for reports with U.S. retail sales at 7:30 a.m. CDT and the Federal Reserve's Beige Book due out at 1 p.m. CDT. Weather remains important for row crop harvest conditions and winter wheat planting. Trade with China also remains an ongoing topic of interest. Weather Wednesday will be dry and favorable for field drying and harvest in all primary crop areas. Rain will be confined to the eastern and southern U.S. The 10-day pattern is drier and cool, giving additional harvest prospects.
| Rural Advocate News | Tuesday October 15, 2019 |
Trump: China Ag Purchases Already Underway President Donald Trump says China will immediately start buying U.S. agricultural products. Via Twitter over the weekend, Trump says China will start buying “very large quantities” of U.S. farm products, adding, “they have already started.” The administration says the agreement Friday includes $40-$50 billion of commodity sales to China over the next couple of years. China already had increased purchases of agricultural goods, like soybeans and pork, heading into the talks last week. China also agreed to certain intellectual property measures, as well as concessions related to financial services and currency. President Trump says the U.S. and China will work quickly to finalize phase one of the agreement and proceed to phase two. Agriculture groups expressed careful optimism following the announcement last week. The American Soybean Association called the partial agreement "good news," but awaits further details on the potential economic impact of the agreement. ASA adds the organization “remains hopeful this is a step toward rescinding the tariffs and helping restore certainty and stability to the soy industry.” ************************************************************************************ AEM Releases September Equipment Sales Results September was a fairly solid month overall for retail sales of tractors and combines in the United States and Canada, according to the latest data from the Association of Equipment Manufacturers. Total farm tractor sales in the U.S. increased 18.7 percent in September compared to last year, while combine sales increased 12.3 percent. Year to date, total U.S. tractor sales are up nearly five percent, while sales of combines are up 1.8 percent. For Canada, total farm tractor sales were up 13.7 percent, while sales of combines were down 25.5 percent. Year-to-date, total tractor sales in Canada are down 4.4 percent, while sales of combines have decreased 27.7 percent. AEM senior vice president of ag services, Curt Blades, calls the sales figures solid, but says the organization continues “to hear from our members real concerns about the overall ag economy." AEM is an international trade group representing off-road equipment manufacturers and suppliers with more than 1,000 companies and more than 200 product lines in the agriculture and construction industry sectors worldwide. ************************************************************************************ Farm Equipment Leasing Doubles A new report shows the leasing of farm equipment has nearly doubled since 2012. The Wall Street Journal reports Deere & Co. is spending billions of dollars each year on its own equipment for leasing programs. Records show that more than one-third of financed purchases of high horsepower machinery made by John Deere is being leased to farmers and construction builders. Roughly 90 percent of those machines are owned by Deere's financing business. Deere reports that in 2018, leased equipment represented a value of $7.8 billion, compared to more than $2 billion in 2012. Meanwhile, CNH Industrial, the maker of Case IH and New Holland, is also leasing more equipment. The company says more than 40 percent of high horsepower tractor sales are leased, up from 25 percent back in 2012. The current farm economy is drastically different from 2012, around the time farm income reached an all-time high before plummeting over the last few years. ************************************************************************************ Trade Aid Includes Lamb Purchases The Department of Agriculture is moving forward with select trade aid provision in buying U.S. lamb products. USDA’s Agricultural Marketing Service recently announced the food purchase of up to $17 million of American lamb for distribution to various food nutrition assistance programs. The products include, but are not limited to, boneless lamb leg roasts and boneless lamb shoulder roasts. The Chief Economist’s office determined the amount to be spent on American lamb. The $17 million allotted is a larger amount than USDA has spent in previous lamb buys. The American Sheep Industry Association is helping facilitate the program between USDA and sheep producers. Meanwhile, the broader trade aid effort, including payments to farmers, remains unclear. USDA had planned another payment to producers this fall, with a final payment early next year. However, a breakthrough in talks with China, and the Japan agreement signed last week, could mean the payments are no longer needed in the eyes of the Trump administration and farmers. ************************************************************************************ NCGA Making Contributions to Bee Health National Corn Growers Association staffers recently participated in the annual meeting of the Honeybee Health Coalition. The effort is part of NCGA’s work to ensure corn growers' voices are represented in wide-ranging conversations on sustainability issues. Through its participation, NCGA ensures the coalition includes representation across a spectrum of stakeholders, including grower groups like NCGA, commercial beekeepers, input providers, specialty crop growers and more. Even though corn production does not require pollination from bees, NCGA still engages with groups like the Honeybee Health Coalition to “create dialogue and foster a better understanding” of the similarities and differences in crop production around the country. During the meeting, NCGA staff had the opportunity to lead a discussion on row crop production to allow others to better understand the decisions farmers make. NCGA says farmers can take small steps to support the health of honeybees. One such step is the planting of pollinator habitat on unused land on the farm, such as areas near farm buildings, or on marginal lands, like CRP group. ************************************************************************************ Midwest, Western Farmers to See Mid-South Cotton Operations Farmers from Idaho and North Dakota have a unique opportunity to observe cotton and other agriculture-related operations in the Mid-South. A group of farmers this week are touring southern cotton-growing areas as part of the National Cotton Council's Multi-Commodity Education Program. Launched in 2006, the program is a Cotton Foundation education project supported by a grant from John Deere. It is coordinated by NCC's Member Services and local leaders and organizations. The program is designed to provide its participants with a better understanding of production issues and concerns faced by their peers in another geographic region, along with an observation of that region’s agronomic practices, technology utilization, cropping patterns, marketing plans and operational structure. Finally, the program provides tours of the region’s research facilities and its agricultural processing operations and related businesses relevant to the area economy. The group began the tours Monday at NCC headquarters in Tennessee and will travel to cotton farms, warehouses and production facilities in Arkansas.
| Rural Advocate News | Tuesday October 15, 2019 |
Washington Insider: Trade News and Confusion The good news for the trade outlook with China reported over the weekend seems to have been at least somewhat premature. Later, on Monday, the media began to say that China had not actually confirmed elements of the deal earlier touted by the administration. A little later, Bloomberg reported that “China wants to hold more talks this month to hammer out the details of the phase one trade deal … before Xi Jinping agrees to sign it.” The report cited “people familiar with the matter.” Confusion exploded into press speculation almost immediately. “Beijing may send a delegation led by Vice Premier Liu He, China’s top negotiator, to finalize a written deal that could be signed by the presidents at the Asia-Pacific Economic Cooperation summit next month in Chile, Bloomberg said. Another report said China also wants the U.S. to scrap a planned tariff hike in December in addition to the hike scheduled for this week, “something the administration hasn’t yet endorsed.” Mainly, these sources are cited as “asking not to be named discussing the private negotiations.” Bloomberg summed up with “The U.S. and China have emerged from last week’s talks with different takes on what’s in the accord and how close they are to signing a document.” President Donald Trump said “we’ve come to a deal, pretty much, subject to getting it written” and indicated it might take several more weeks of negotiation. China’s Ministry of Commerce merely said that “the two sides have made substantial progress” and “agreed to work together in the direction of a final agreement.” The state-run Xinhua news agency didn’t mention “a deal” at all, Bloomberg said. Hu Xijin, the editor-in-chief of the Global Times, said in tweet that “China-U.S. trade talks made breakthrough last week and the two sides have the strong will to reach a final deal.” Bloomberg noted that the tabloid is “run by the People’s Daily, which is the flagship newspaper of the Communist Party.” Treasury Secretary Steven Mnuchin said Monday on TV that he expects officials to work in coming weeks to get the first stage ready for both sides to sign. If that doesn’t happen, the new U.S. import taxes on Chinese products will be imposed starting Dec. 15, he said. Taoran Notes, a state-affiliated blog that focuses on the trade talks, said that the difference in tone struck by Chinese media was due to “cultural and language” differences and both sides are in consensus over the deal.” President Trump is scheduled to meet with Liu He on Nov. 11. China’s Ministry of Commerce did not immediately comment on the spate of confusing reports. Geng Shuang, a foreign ministry spokesman, reiterated on Monday that both sides had made progress and said he hoped “the U.S. will work with China and meet each other halfway.” Investors have struggled to determine whether or not the U.S. and China did reach a breakthrough in the 18-month trade war. Worse-than-expected September trade figures in China underscored the growing pressure on both Trump and Xi to reach a deal to avert a wider slowdown in the global economy. Bloomberg also noted that “China has become increasingly wary of any statements from President Trump.” Trust between the two sides suffered a big blow in May 2018, when President Trump put a stop to a deal for China to buy more energy and agricultural goods to narrow the trade deficit. The U.S. president further sowed distrust in August when he claimed that Chinese officials had called and requested to restart trade talks. For Xi, observers suggest that it is politically infeasible to accept a final deal that doesn’t remove the punitive tariffs altogether. Nationalists in the Communist Party have pressured him to avoid signing an “unequal treaty” reminiscent of those China signed with colonial powers. “The U.S. must concede on its December tariff threat if they want sign a deal during APEC summit, otherwise it would be a humiliating treaty for China,” said Huo Jianguo, a former Chinese commerce ministry official who is now vice chairman of the China Society For World Trade Organization Studies. “The U.S. has definitely shown some good gestures but we shouldn’t exclude the possibility of another flip-flop.” So, we will see. While there were numerous concerns voiced about the remaining gap between the U.S. and China following last week’s reports, few observers seem to have understood how preliminary — and, fragile — the perceived progress actually may have been. Certainly, the administration has considerable explaining to do if in fact there was very little agreement in spite of claims that there was—and what all that means for the future of crucial overseas markets and opportunities for U.S. producers and many others in these very tense political times, Washington Insider believes.
| Rural Advocate News | Tuesday October 15, 2019 |
Florida Tomato Exchange Calls for Reopening of Antidumping Probe The Commerce Department is being asked to reopen its antidumping investigation on imports of tomatoes from Mexico, with the request from the Florida Tomato Exchange (FTE) coming as they maintain that Mexico could walk away from the recently reached deal. Both sides had welcomed the deal when it was reached, but FTE said that Mexican tomato growers have been threatening to either launch legal challenges to the deal or seek to renegotiate the pact. Given the situation, FTE said they had “no choice” but to ask that Commerce reopen the investigation. It is not clear yet whether Commerce will take the step requested by the FTE.
| Rural Advocate News | Tuesday October 15, 2019 |
WTO Clears US Retaliation Against EU Over Airbus Subsidies The special meeting Monday at the WTO requested by the U.S. saw the U.S. granted approval to impose sanctions on $7.5 billion in goods from the European Union (EU). The EU continued to contend the U.S. action was unfair while the U.S. maintained the position that the dispute has been ongoing for some 15 years without any changes on the part of the EU. Incoming EU Trade Commissioner Phil Hogan said he would seek a negotiated settlement with the U.S. and said the block would likely finance and aid plan for olive farmers as they are among the sectors that will be hit by tariffs. The U.S. intends to hit the full $7.5 billion slate of products with tariffs, setting them at 10% for large commercial aircraft and 25% on agricultural and industrial goods. The tariffs will take effect October 18.
| Rural Advocate News | Monday October 14, 2019 |
U.S., China Reach Limited Trade Agreement The U.S. reached a limited trade agreement with China on Friday afternoon that would pave the way for resolutions on broader issues later in the year. Business Insider Dot Com says it temporarily defuses a dispute between the worlds’ two largest economies. President Donald Trump told reporters in the Oval Office that, “We’ve come to a very substantial phase one deal.” China reportedly agreed to sginificantly increase agricultural purchases, as much as $40-50 billion worth. China also agreed to certain intellectual property measures, as well as concessions related to financial services and currency. The U.S. will delay a tariff increase that was set to take effect this week as the deal is finalized. China had already been making more purchases of agricultural goods like soybeans and pork heading into the talks last week in Washington, D.C. The U.S. was threatening to increase tariffs Tuesday on approximately $250 billion worth of Chinese goods, upping the duties from 25 to 30 percent. The agreement will take three to five weeks to get written down on paper. It marks the first breakthrough in the 1.5-year trade war that has hurt the economies of both nations. Trump also told reporters that this is just the first phase of a broader agreement. It’s important to note that the Chinese Vice Premier doesn’t have the full authority to approve the agreement. China’s President Xi Jingping must agree to the deal as well. ********************************************************************************************** More Optimism Surrounding USMCA Passage One of the biggest hurdles to passing the U.S.-Mexico-Canada Trade Agreement could soon go away. Mexico recently promised House Democratic Leadership that it would improve its enforcement of new labor standards to protect the rights of workers in that country. The LA Times says Mexican President Obrador also told Democrats during meetings in Mexico that his government would add more funding to make sure Mexico complies with the agreement’s provisions. That could mean the road to the revised North American Free Trade Agreement could become much easier with Mexico’s concessions to labor concerns. That’s assuming Obrador’s assurances are put into writing as House Democrats want. The Democratic trip to Mexico comes almost a full year after Trump signed the new trade pact with the leaders of Mexico and Canada. Congress hasn’t approved the deal yet and House Speaker Nancy Pelosi says it won’t come up for a vote in the chamber until all of their concerns are resolved. U.S. Trade Representative Robert Lighthizer has worked with a group of House Democrats who want Mexico to improve its policy on labor, pharmaceutical, and environmental issues. However, the changes don’t require reopening the agreement with Mexico and Canada, something that would derail the trade pact entirely. ********************************************************************************************** McKinney Will Lead Trade Mission to Vietnam USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney will lead a trade mission to Vietnam on October 15-18. It’s a large trade mission as McKinney will be accompanied by almost 80 industry and government representatives looking to grow agricultural export opportunities into one of the fastest-growing regions in the world. The mission will be based in Ho Chi Minh City, and it will also include buyer delegations from Thailand and Burma. “The size of this trade mission speaks to the phenomenal potential that exists for U.S. exports in Vietnam and the surrounding countries,” McKinney says. “Since the United States normalized relations with Vietnam in 1995, our agricultural exports have grown exponentially, reaching a record $4 billion last year.” Sales of U.S. food and farm products to Thailand and Burma also set records last year, reaching more than $2.1 billion and $126 million, respectively. The heads of six state departments of agriculture from Montana, New Mexico, North Dakota, South Dakota, Texas, and Wyoming will join McKinney on the trip. Officials from agriculture companies and commodity organizations will also be making the journey to Asia with McKinney. ********************************************************************************************** Tomato Virus Entering U.S. Through Mexican Imports The Florida Department of Agriculture and Consumer Services issued an alert regarding the Tomato Brown Rugose Fruit Virus. The disease has been recently found in Mexican tomatoes at several grocery stores throughout the state. Multiple large-scale greenhouses in Mexico were confirmed to have shipped infected tomatoes to Florida. The virus can affect both tomatoes and peppers, causing severe yield reduction for growers and defects that make the fruit unmarketable to consumers. A Florida Tomato Exchange news release says this disease making its way into the U.S. tomato and pepper crop would be a crisis for American growers and shouldn’t be taken lightly. Growers around the world are already on high alert as the fruit virus, which originated in the Middle East, spread to Europe and Mexico. What makes the disease even more of a concern for growers is that it can be transmitted by touch. That makes it easy to spread the disease from infected imports in the marketplace to producer fields or greenhouses. The Florida Tomato Growers are asking the USDA to follow the lead of the European Commission, which voted to implement a quarantine status in all EU countries to help prevent the spread of the disease. ********************************************************************************************** Beef Exports Trail Last Year’s Record Number August beef exports this year were below the record-large numbers in August of last year. That’s according to data from the USDA that was compiled by the U.S. Meat Export Federation. August beef exports totaled just over 114,000 metric tons, a four percent drop from the large volume of a year ago. The export value dropped eight percent, coming in at a little more than $690 million. January through August beef exports were also just below last year’s record pace, declining two percent in volume to 881,500 metric tons and one percent in value at $5.44 billion. Exports accounted for 14 percent of total U.S. beef production in August. In terms of specific markets, beef exports to Korea slowed nine percent compared to 2018. That drop followed value records on beef shipments to Korea that were set in June and July. However, January-August exports to Korea were still eight percent ahead of last year’s record pace in volume and 10 percent higher in value. Beef variety meat exports to Japan have been a bright spot in 2019, increasing 31 percent in volume and 18 percent in value. “The U.S. beef industry is excited about the prospect of lower tariffs in Japan,” says USMEF President and CEO Dan Halstrom. “At 38.5 percent, the Japanese tariffs U.S. beef faces are the highest of any of our major markets.” ********************************************************************************************** Crowdfarming Platform Launched Steward, the world’s first crowdfarming platform, announced it is now open to individual investors. The platform allows people to invest directly in sustainable farms. Platform founder Dan Miller says the crowdfarming model creates a win-win for both farmers and investors, unlike traditional farm funding. Farmers can purchase the land and equipment they have to have while investors earn a return while they support regenerative agriculture. “Access to capital is a critical problem that limits many farmers, but for every farm that needs funds, there are many people ready to invest,” Miller says. “We created Steward as a platform for people to invest directly in sustainable farms, knowing that their dollars will earn a return while they make a positive impact.” Steward offers a variety of investment options, including a diversified portfolio of farm loans, individual farm loans, or Steward itself. The company does its homework and vets each farm, developing a customized plan with the farmer to get the funds they need to grow and operate their business. Steward has invested more than $2.2 billion in 16 sustainable farms to date.
| Rural Advocate News | Monday October 14, 2019 |
Washington Insider: Good News on China Trade There is at least some good news on trade this week—an interim pact announced Friday between the United States and China “came together” as both country’s leaders faced mounting political pressures and rising economic worries at home, the New York Times said on Sunday. It said that both sides decided that “half a deal was better than none,” consenting to a preliminary agreement that would involve China buying more American farm products and taking several other limited steps to open its economy “in exchange for the United States foregoing its planned tariff increase next week.” NYT noted that the truce will help calm a trade fight that has taken a significant toll on the world’s two largest economies and threatened to further slow global growth at a precarious moment. “It’s pretty clear that the U.S. and China have fought this war to a stalemate,” said Edward Alden, a senior fellow at the Council on Foreign Relations. “At the moment, neither side sees any real advantage in escalation. Of course, both sides are claiming a win, the Times said, and pointed to cautions including an International Monetary Fund warning last week that argued that the trade fight with China could cost the global economy around $700 billion by 2020 — a loss equivalent to the size of Switzerland’s entire economy. The Times also pointed to an American farm economy hurt by a sharp drop-off in sales to China, among the largest export markets for agricultural goods like soybeans, pork and corn. Although the administration has tried to blunt the pain with two rounds of financial assistance, farmers pushed the White House to end the war, saying the handouts “are not enough to make up for the lost sales.” NYT said. The administration had planned to increase tariffs on $250 billion worth of goods to 30% from 25%, a hike that would likely have been met with further retaliation by China and “been particularly burdensome for U.S. consumers and businesses going into the holiday season,” the Times said. The administration said on Friday that China has agreed to buy $40 billion to $50 billion worth of American farm goods annually after scaling up over a period of two years. The compromise is even more timely for Chinese President Xi Jinping, the Times said. Sharply rising food prices have become a national issue in China. A lethal epidemic among the country’s swine has sent prices skyward for pork as well as for alternatives like beef and lamb. As the Chinese public has begun asking, “Where’s the beef?” China’s trade negotiators suddenly have an answer: It can come from the United States, along with a lot of pork, soybeans and other food, the Times said. However, it also noted that the deal likely will not reverse a trend toward greater economic divisions between the two countries. If the understanding on Friday holds together, it would allow the U.S. to retain tariffs imposed over the past 16 months on a wide array of Chinese industries. That could prompt many companies to continue efforts to shift production away from China, possibly to the United States but more likely to American allies in Southeast Asia. Eswar Prasad, a professor of trade policy at Cornell University and a senior fellow at the Brookings Institution, said the agreement will defer new sanctions but will do little to resolve the major underlying sources of friction between the two countries. “It’s hard to see this really amounting to an actual de-escalation of tensions or anything that businesses can take to the bank,” Mr. Prasad said. The president has often criticized past administrations for ceding too much to China, and negotiating endlessly with limited results. China experts say that the many months of painful standoff have perhaps shown the limits to his winner-take-all approach. Negotiators say they will continue discussing other issues once the deal is signed. Still, the compromise does signal a shift in strategy for the administration, which had previously said it would settle for no less than a comprehensive pact that addressed so-called “structural issues” — that is, various industrial policies seen as harmful to American businesses, including subsidies to its state-owned companies, policies that pirate technology and a pernicious history of cybertheft. But while the agreement includes some new protections on intellectual property, greater access for financial services companies and guidelines as to how China manages its currency, it does not appear to address several of these deeper concerns. The U.S.-China Business Council, which represents American companies that do business in China, said it hoped the tentative agreement would restore sufficient confidence to allow negotiators to tackle other issues, including “market-distorting subsidies for state-owned enterprises and equal treatment for U.S. and other foreign companies.” Whether China will agree to deeper concessions is not guaranteed, particularly given Xi’s political sensitivities at home. In the next three weeks, Xi will face a long-awaited session of the 204-member Central Committee of the Chinese Communist Party. The committee, which has not gathered since February of last year, holds enormous power in China and has authority to change the country’s leaders. So, we will see. While a pause in hostilities likely will be seen as welcome by producers, the fact that so many of the often stated, key objectives have not been achieved can be expected to lead to questions of basic administration policy — a growing debate that producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Monday October 14, 2019 |
USDA Corrects August Trade Data to Trade Surplus, Not Deficit USDA has corrected its figures released October 7 on U.S. ag export and imports for August, essentially swapping the figures for the two categories. USDA now says that exports in August totaled $11.27 billion and imports at $10.46 billion, putting the monthly balance at a surplus of $813 million. USDA on October 7 reported the figures as exports at $10.46 billion against imports of $11.27 billion for a trade deficit of $813 million. The adjustment by USDA means the U.S. has only registered a trade deficit in agriculture three months of Fiscal Year (FY) 2019 and would indicate a deficit for the entire FY is now far less likely. While it appeared unlikely that the U.S. would register a trade deficit in agriculture for all of FY 2019, that is even more the case now in light of the updated figures.
| Rural Advocate News | Monday October 14, 2019 |
Top House Appropriator Lowey Announces She Will Not Run In 2020 House Appropriations Chair Nita Lowey, D-N.Y., the first woman to lead the panel, announced Thursday she will not seek reelection in 2020. That has set off a potential contest to replace her atop the panel that controls government purse strings. Rep. Rosa DeLauro, D-Conn., announced she will seek the top position, a move that would put a sharp critic of the current administration’s food safety and Supplemental Nutrition Assistance Program (SNAP) in charge of the panel that decides on House versions of government spending. DeLauro also has pushed a means test and other restrictions on crop insurance to limit its use by large farms. But Rep. Marcy Kaptur, D-Ohio, is also mentioned as a possible contender and is the second-ranking Democrat on the panel – DeLauro is the third-ranking Democrat in terms of seniority. However, Democrats have not relied solely on seniority relative to full committee chair roles.
| Rural Advocate News | Friday October 11, 2019 |
USDA Releases Monthly Reports The monthly World Agriculture Supply and Demand Report, along with the monthly Crop Production Report, led to a drop in corn prices Thursday. The Department of Agriculture pegged corn ending stocks at 1.92 billion bushels, while the trade guess estimated stocks at 1.78 billion. That sent corn futures down 12-14 cents. Corn production is forecast at 13.7 billion bushels, down 20 million as a decline in harvested area more than offsets an increased yield forecast. The season-average corn price is raised 20 cents to $3.80 per bushel. Meanwhile, Soybean production is forecast at 3.6 billion bushels. USDA estimated soybean production at 3.55 billion bushels, while the trade guess was 3.58 billion. Soybean yield is projected at 46.9 bushels per acre, down one bushel from the September forecast. Harvested area is reduced slightly to 75.6 million acres. The U.S. season-average soybean price is forecast at $9.00 per bushel, up 50 cents reflecting smaller supplies. Finally, the outlook for wheat this month is for smaller supplies, reduced total use, and rising ending stocks. The season-average farm price is lowered $0.10 per bushel to $4.70. ************************************************************************************* EPA Employees Seek Democrat Oversight Investigation Questioning Political Retaliations Nearly 600 former employees of the Environmental Protection Agency seek an investigation into alleged political retaliations. A letter by employees announced Thursday asks the House Oversight Committee to investigate President Donald Trump’s alleged abuse of EPA authority. The group cites Trump threatening California with enforcement actions while ignoring worse violations in other states. At least six states have had more major pollution sources in significant noncompliance with environmental laws over the last three years than California. The letter was a partial response to President Trump's September 19 claim that homeless people are responsible for "tremendous" amounts of ocean pollution in California and EPA's September 26 follow-up letter threatening enforcement action. The 593 former EPA officials objected to a September 24 letter from Wheeler to California Governor Gavin Newsom that threatened to withhold federal highway funds based on California’s failure to meet air quality standards. That letter was sent shortly after the Trump EPA announced it would undermine California’s efforts to reduce air pollution by blocking the state’s limits on greenhouse gas emissions from vehicles. ************************************************************************************* Southeastern U.S. Facing Flash Drought An unprecedented early blizzard in the Northern U.S., along with the second-highest runoff year on record in the Missouri River basin, combine now with a flash drought in the Southeastern United States. The latest Drought Monitor shows conditions continue to dry out, coinciding with record warmth, with deteriorations widespread and rapidly occurring in the region. Florida and Alabama had their third warmest September on record, South Carolina their fourth and Georgia their fifth. Alabama, Georgia and Florida all had their driest September on record. Mississippi had their driest September on record and Tennessee had their second driest, while Texas and Louisiana had their warmest Septembers. And, Oklahoma, Arkansas, and Mississippi had their second warmest. Meanwhile, the High Plains and Midwest regions will likely see season-ending freeze events, as a blizzard moves across the region with some areas expecting up to a foot of snow. And, the Missouri River remains flooded by what could become a record runoff season. Flooding started in March following the bomb-cyclone winter storm. ************************************************************************************* Cattlemen Participate in White House Event Spotlighting Federal Overreach Two members of the National Cattlemen's Beef Association joined President Trump earlier this week during an event focused on curbing government overreach. The NCBA members attended a White House signing ceremony of executive orders to provide more clarity and transparency to “complicated federal regulatory processes.” Kevin Lunny of California attended, saying afterward, "We applaud the administration for finally giving ranching families a voice, and look forward to working with the President to find solutions to these challenges.” Lunny was the owner of the Drakes Bay Oyster Company, which was forced to close in 2015 after a years-long battle with the National Park Service, Interior Department, and environmental groups that attracted national attention and outrage. NCBA Vice President of Government Affairs Ethan Lane commented, "Washington needs to help our producers succeed and continue to help feed the world - not actively try to put them out of business." Lane says eth Trump administration "understands that," saying President Trump has proven his commitment to regulatory relief and reform for agricultural producers ************************************************************************************* California to End Chlorpyrifos Sales The California Environmental Protection Agency announced Thursday that virtually all use of the chlorpyrifos (clo-PEER-uh-foss) in California will end next year. The announcement follows an agreement between the Department of Pesticide Regulation and pesticide manufacturers to withdraw their products. Regulators cite evidence that chlorpyrifos is associated with serious health effects in children. The agreement with Dow AgroSciences and other companies means that use of chlorpyrifos will end sooner than anticipated. Under the settlement, the companies agreed that All sales of chlorpyrifos products to growers in California will end on February 6, 2020. Growers will no longer be allowed to possess or use chlorpyrifos products in California after December 31, 2020. Until then, all uses must comply with existing restrictions, including a ban on aerial spraying, quarter-mile buffer zones and limiting use to crop-pest combinations that lack alternatives. Chlorpyrifos is used to control pests on a variety of crops, including alfalfa, almonds, citrus, cotton, grapes and walnuts. It has declined in use over the past decade as California growers have shifted to alternatives. ************************************************************************************ National Cattlemen’s Foundations Accepting Scholarship Applications The National Cattlemen’s Foundation is now accepting applications for 2020-2021 beef industry scholarships sponsored by CME Group. Announced this week, the ten scholarships of $1,500 each will be awarded to students pursuing careers in the beef industry. The CME Beef Industry Scholarship was first introduced 30 years ago in 1989. Today, the scholarship recognizes and encourages students who will each play an important role in the future of food production in America. Students studying education, communication, production, research or other areas related to the beef industry should consider applying for the scholarship. Tim Andriesen of CME Group says the scholarships "strengthen the education of tomorrow's industry leaders on risk management in the beef industry." Online applications should be submitted by November 8, 2019, at midnight Central Time. Applicants must be a graduating high school senior or full-time undergraduate student enrolled at a two- or four-year college. Application requirements and other information are available online at nationalcattlemensfoundation.org.
| Rural Advocate News | Friday October 11, 2019 |
Washington Insider: Tougher Fed Scrutiny for Future Rate Cuts Discussed There is a great deal of tea-leaf scanning these days regarding possible future Fed moves. Bloomberg says that Fed officials in September began debating "how far their current interest-rate cutting campaign should extend, even as they agreed to lower rates in response to growing risks to the U.S. economy." Bloomberg noted that participants at the September Open Market meeting generally judged that downside risks to the outlook for economic activity "had increased somewhat since their July meeting, particularly those stemming from trade policy uncertainty and conditions abroad." The minutes of the Sept. Federal Open Market Committee meeting were released Wednesday. In discussing policy beyond the September session, however, several committee officials made a push for the FOMC's statement to signal the limits future policy easing. "A possible base case for the Oct. 30 meeting is that the Fed will cut rates another 25 basis points, but then add language to the statement to signal that the bar for additional cuts is getting higher," Roberto Perli, a partner at Cornerstone Macro LLC in Washington, wrote in a note to clients. "That would also be a way to address the obvious divisions inside the committee about the desirability and extent of future rate cuts." Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York, was more skeptical that Fed officials might soon put down such a marker. "Between October and December you're going to have two jobs reports, some Brexit developments -- a lot of things can happen," he said. "I don't know that a day after October they want to put things on a pre-set course." At their September meeting, the FOMC lowered rates by a quarter percentage point for the second time this year -- a move Chairman Powell described as providing insurance against risks threatening the economic outlook. However, projections on the best future path for rates, also released after that meeting, showed divisions among policy makers. Five thought it was a mistake to cut rates, five agreed with the reduction and thought that would be enough this year, and seven favored another decrease by December. The minutes again reflected concern over slowing global growth and uncertainty created by the administration's trade disputes. "Several participants mentioned that uncertainties in the business outlook and sustained weak investment could eventually lead to slower hiring, which, in turn, could damp the growth of income and consumption," the record of the gathering said. Officials agreed consumer spending was increasing at a strong pace and household spending was likely to hold up, while several said the housing sector was starting to rebound as mortgage rates fell. Nonetheless, several Fed officials noted that statistical indicators pointing to the probability of a recession over the medium term had increased notably in recent months -- and Bloomberg added that economic data released since the meeting has been soft. Closely watched reports on manufacturing, services and payrolls all came in weaker than expected, though hiring was still seen as sufficient to push the U.S. jobless rate down to a half-century low of 3.5%. In addition, Chairman Powell sounded non-committal Tuesday on the need for another cut in October, describing the economic outlook as "favorable" but threatened by risks connected to trade and slowing global growth. "We will act as appropriate to support continued growth, a strong job market, and inflation moving back to our symmetric 2% objective," he said. Earlier this week, Powell stressed that the Fed increase in purchases was to solve "technical issues" and was not designed to stimulate the economy. The New York Times said in its review of the minutes, that the Fed has two main tasks: promoting maximum employment and maintaining stable inflation, which it defines as 2 percent annual price gains. However, it also noted that the Fed has become increasingly divided over how to achieve those objectives because the economy's prospects have been clouded by trade and other economic uncertainties even as consumer spending and job growth have held up. Still, the Times report said, "despite the mounting risks, a few Fed officials felt that markets were expecting too many Fed interest rate cuts, "and that it might become necessary for the committee to seek a better alignment." The debates over the economy and trade have become the most intense of recent years and likely will continue to be both contentious and persistent and should be watched closely by producers as they continue to intensify, Washington Insider believes.
| Rural Advocate News | Friday October 11, 2019 |
AFL-CIO'S Trumka says USMCA would be defeated in pre-Thanksgiving vote If a House vote on the U.S.-Mexico-Canada Agreement (USMCA) is taken before Thanksgiving, AFL-CIO President Richard Trumka told the Washington Post in an interview that it would be a "colossal mistake" and "the agreement would be defeated." However, Trumka did not rule out his organization backing the deal, provided that labor enforcement issues are addressed. "If they can't enforce their own laws, we have a real problem," he said. "No agreement will be able to work." Should those items be addressed, Trumka said, "we can get to yes. If we can't get them fixed, we can't get to yes.".
| Rural Advocate News | Friday October 11, 2019 |
Commerce's Ross: US Focus With China Is On Getting Them To Follow World Trade Rules The U.S. is "not opposed to trade with China," Commerce Secretary Wilbur Ross said at an American Chamber of Commerce meeting in Australia. But the U.S. is seeking to address "fundamental issues in our trade relationship with China, including forced technology transfers, cyber intrusions, the stealing of [intellectual property] and industrial subsidies to state-owned enterprises." He blamed China for causing "massive dislocations due to overcapacity and dumping excess production into global markets." Getting China to "abide by the global rules of trade, every nation in the world will benefit - including China. China is, after all, a real powerhouse. It is growing rapidly. And with its success comes responsibility - its responsibility to act as a member of the global community." China has not changed its behavior since joining the WTO, Ross stated. "In fact, its practices have become more protectionist than before," he said. In other remarks in Australia, Ross noted that the U.S. does not like to use tariffs. "In fact we would prefer not to use them, but after years of discussions and no action, tariffs are finally forcing China to pay attention to our concerns," Ross said, according to Reuters.
| Rural Advocate News | Friday October 11, 2019 |
Friday Watch List Markets Subfreezing temperatures are a new threat in the northwestern Corn Belt, possibly extending into central areas that will be closely watched through the weekend. A second day of U.S.-China trade talks is scheduled for Friday if both sides are still willing and an index of U.S. consumer sentiment is due out at 9 a.m. CDT. Weather Heavy snow and blizzard conditions are in store for the far Northern Plains Friday, with moderate to locally heavy rain featured from the northern Midwest to the Gulf Coast. Freeze warnings are now in effect from the Texas Panhandle to the northern Great Lakes for season-ending cold this weekend.
| Rural Advocate News | Thursday October 10, 2019 |
China Talks in DC Underway Trade talks between the U.S. and China are underway, even as the U.S. puts more pressure on China, and some say the talks may be cut short. U.S. Secretary of State Mike Pompeo announced visa restrictions on certain Chinese officials this week, and the U.S. is expected to impose more tariffs on Chinese goods next week. The U.S. also recently blacklisted 28 Chinese tech companies, prohibiting them from exporting goods to the United States. A spokesperson for China’s Foreign Affairs Ministry says China “hopes the U.S. will meet China halfway” on the talks. Politico reports that China may cut the talks short by a day, and leave Friday, adding both sides appear to be working towards a mini trade deal. Financial Times reports China is offering to buy more U.S. agriculture products in a “goodwill” move. However, many speculate there will be little breakthrough in the talks, other than a possible delay in the U.S. tariffs planned to go into effect next week. ************************************************************************************* Voter Poll Shows Strong Support for RFS, Biodiesel Use An annual poll of registered voters by the National Biodiesel Board shows a candidate's support for policies to promote clean energy, including biodiesel and renewable diesel use, can influence votes. NBB CEO Donnell Rehagen stated, "Voters are consistent year-to-year in saying they support political candidates who champion federal policies to encourage development and use of cleaner fuels.” Among the respondents, nearly three-quarters, 73 percent, had previously heard some information about biodiesel. More than half, 57 percent, of all respondents agreed that federal policy should encourage use of biodiesel and renewable diesel. When asked if federal policy should support petroleum, 45 percent said "no," while only 34 percent said "yes." Nearly four of every five respondents expressed support for existing federal programs that encourage increased production and use of advanced biofuels, and 78 percent of respondents support the federal tax incentive for biodiesel. Finally, 79 percent of those surveyed said they support the Renewable Fuel Standard, and would encourage local communities and governments to promote use of biodiesel. ************************************************************************************* Share of Highly Leveraged Farms Forecast to Increase The number of farm businesses that are highly leveraged has fallen since 2015, but is forecasted to increase slightly in 2019. Farm businesses accounted for more than 94 percent of U.S. farm sector production in 2017. That year, farm businesses held 90 percent of all farm assets and 96 percent of farm debt. However, the Department of Agriculture forecasts 4.3 percent of crop farm businesses to be very highly leveraged, the highest share since 2002. USDA Economic Research Service defines farm businesses as operations where farming is reported as the operator’s primary occupation or that have at least $350,000 in annual sales. Farm businesses specializing in crops tend to have higher shares of both highly and very highly leveraged operations than farm businesses specializing in livestock and animal products. Debt-to-asset ratios can indicate a farm’s risk exposure and ability to overcome adverse financial events. USDA says Lending institutions consider debt to asset ratios when evaluating credit worthiness of farms, adding highly leveraged farm businesses may have difficulty securing a loan. ************************************************************************************* Butter Institute: Congress Must Compel FDA to Uphold Butter Law The American Butter Institute wants Congress to take action in making the Food and Drug Administration enforce laws that define butter as a dairy product. The organization sent letters to the leaders of the House Committee on Energy and Commerce and the Senate Committee on Health, urging them to compel FDA to enforce federal law against plant-based imposters that illegally misuse the term "butter" as a marketing trick. Butter's definition has been settled law for more than a century, covered by legislation dating to 1886. Imitators made from vegetable oils have been able to use terms such as "margarine" and "spread," ensuring a transparent marketplace. However, as butter's popularity has grown in recent years, per-capita U.S. consumption last year reached its highest since 1968, the organization says marketing departments at brands such as Country Crock have been breaking the law by calling their products "plant-based butter." The organization also supports the National Milk Producers Federation's citizen seeking to address dairy imitators using dairy names. ************************************************************************************* Study Shows Limited Broadband Access in Rural America A new study commissioned by the United Soybean Board reveals the lack of access to broadband in rural areas takes a significant toll on farmers and the economy. The study found 60 percent of U.S. farmers say they do not have enough connectivity to run their businesses. USB initiated the rural broadband study to better understand how and why farmers currently access the internet, and the implications that access. Data from the United States Department of Agriculture Economic Research Service indicates that farming contributes to nearly $133 billion of our country’s gross domestic product. Based on USB’s rural broadband survey, the lack of connectivity negatively impacts farmers responsible for $80 billion of gross domestic product. The survey also found 78 percent of farmers do not have a choice in internet service providers, and 60 percent of farmers say their service is too slow, and often rely on cell signals. Meanwhile, 40 percent of farmers say they have fixed internet connections, while others rely on satellite connections.
| Rural Advocate News | Thursday October 10, 2019 |
Washington Insider: Trade Deal Still Possible Well, there are more rumors than usual circling Washington this week -- talk of a "new kind of recession, driven by trade fights" is one. Also, there is talk that China is still open to a partial deal with the U.S. The idea is that Beijing is increasingly focused on "limiting the damage" to the world's second-largest economy. However, Bloomberg noted that as negotiators head to Washington there is little optimism about a broad agreement that would end the current war "for good," the report said. As a result, the group is focusing on the likelihood that China would accept a "significant" proposal as long as no more tariffs are imposed by the U.S., including two rounds of higher duties set to take effect this month and in December. In return, Beijing might offer "non-core concessions" like purchases of agricultural products without giving in on major sticking points. No further details were offered, the administration said. Even so, equities markets responded positively to the report and the offshore yuan extended recent gains. Separately, as noted above, the Financial Times reported that China is offering to increase purchase of American soybeans to 30 million tons annually from 20 million presently. The latest round of negotiations comes just days after the White House announced the blacklisting of Chinese technology firms over alleged roles in oppression in the far west region of Xinjiang, as well as visa bans on officials linked to the mass detention of Muslims. In addition, there is a dust-up between China and the National Basketball Association, triggered by a tweet backing Hong Kong's protesters. Many observers see this as an indication of a "widening gap between the countries," Bloomberg thinks. "I think there might be big breakthrough in the coming trade talks as both sides have expressed good gestures and positive signals," Huo Jianguo, a former Chinese commerce ministry official who is now vice chairman of the China Society for World Trade Organization Studies said. "The recent blacklist and sanctions from the U.S. are just another usual tactic to showcase that it has multiple tools in the trade negotiations in line with president Trump's maximum pressure policy. It is hardly surprising to us and we shouldn't take it too seriously," he said. President Xi Jinping's government is under pressure to stem the broadening conflict as the trade war adds to the forces slowing China's economy. At the same time, China has resisted changes to its own industrial and economic policies that could potentially weaken the Communist Party's grip on that economy. Talks have failed to make serious headway since negotiations collapsed in early May. Since then, China has ramped up its nationalist rhetoric as the U.S. has targeted national champions like Huawei Technologies Co. "The rising nationalism sentiment at home is creating hurdles for President Xi to make concessions in the upcoming trade talks especially in light of the NBA firestorm and Xinjiang sanctions," said Suisheng Zhao, executive director of the Center for China-U.S. Cooperation at the University of Denver's Graduate School of International Studies. "Even if China is willing to make some compromise, that space is limited." In addition, on Tuesday Jerome Powell, chairman of the U.S. Federal Reserve, said "my colleagues and I will soon announce measures to add to the supply of reserves over time." Powell was speaking at the National Association of Business Economics meeting in Denver, Colorado. However, he emphasized that "This is not Quantitative Easing," the Washington Post reported. The Fed chair did not specify the size of the new asset purchase program, but said it would not be a resurrection of what was done after the recession 10 years ago. "I want to emphasize that growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs that we deployed after the financial crisis," Powell said. The Tuesday announcement was a widely anticipated move. Its final details are expected at the Fed's next meeting and press conference on October 30. Powell left the door open to additional rate cuts to protect the U.S. economy from weak growth abroad and the administration's trade war, but he did not promise lower rates. Wall Street is pricing in nearly an 85 percent chance of a rate cut in October, the Post reported. It all makes for many, many economic and trade uncertainties. The Fed seems fully poised to act — and any sign of life in the upcoming talks will be welcomed widely, it seems. The key unknown is whether both negotiators are actually willing to make the necessary concessions to move toward a deal — a process producers should watch closely as it unfolds, Washington Insider believes.
| Rural Advocate News | Thursday October 10, 2019 |
Senators call for investigation of JBS SA An investigation of Brazilian meat packer JBS SA by the Committee on Foreign Investment in the United States (CFIUS) is being called for by two members of the Senate Foreign Relations Committee. Listing off several acquisitions that JBS has made of U.S. meatpackers and food companies, Sens. Marco Rubio, R-Fla., and Bob Menendez, D-N.J., said in a letter to Treasury Secretary Steve Mnuchin that JBS "engaged in bribery of public officials as a methodology to obtain funds that it then used for such acquisitions." The two argued the actions of JBS "have implications for our national security and the security of the American food system." The letter also noted the fines and admissions by JBS officials of bribery are not the only concern point as the company is linked to Venezuela, including the Venezuelan Corporation of Foreign Trade (CORPOVEX) which has been cited for its involvement in "public corruption." The linkage to the government of Venezuelan President Nicolas Maduro and admissions that JBS used criminal conduct to secure loans used to finance U.S. investments are enough to warrant a review by CFIUS, the lawmakers said.
| Rural Advocate News | Thursday October 10, 2019 |
Report Indicates China to Offer to Boost At Least Soybean Buys China will propose to increase purchases of U.S. ag goods in a bid to stave off tariff hikes between the two countries, according to the Financial Times. The proposal includes an offer to increase its annual soybean purchases from the U.S. to 30 million tonnes from a current 20 million tonnes. China would also make "a raft of changes to non-tariff barriers" that have been a frustration point with USDA. The article quoted a source as saying China has "fundamentally agreed to all of the USDA's demands on beef, pork and lamb." The source indicated China has agreed to make around 60 internal changes on their import process. Chinese Vice Premier Liu He will be in Washington for talks with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin Thursday with the report saying that there would be a meeting Friday with President Donald Trump "if the discussions go well." The paper said the trip will not be an "empty visit" as the Chinese are "ready to de-escalate."
| Rural Advocate News | Thursday October 10, 2019 |
Thursday Watch List Markets Early on Thursday will be weekly jobless claims and consumer price index. DTN will be watching weather, with a major storm set to hit the northern Plains, and more importantly USDA's October WASDE report and any media reports from the U.S.-China trade talks in Washington. Weather Thursday features a powerful snowstorm in the Northern Plains and moderate to heavy rain in the central Plains and western Midwest. Harvest disruption, crop damage, livestock stress, and hazardous travel and transport will occur. Record snowfall of more than three feet is possible in the Northern Plains. In addition, hard freeze temperatures will cover most of the Plains and western Midwest by the weekend.
| Rural Advocate News | Wednesday October 9, 2019 |
VP Pence Calls on Congress to Pass USMCA Vice President Mike Pence spent time early this week promoting the U.S.-Mexico-Canada Agreement while calling on Congress to pass the trade deal. Pence penned an editorial in the Arizona Daily Star promoting the trade agreement. The Vice President also toured a Tyson Foods facility in Tennessee. Meanwhile, in a White House statement, Pence says USMCA will add more than $68 billion to the U.S. economy and create another 176,000 American jobs. That includes nearly 50,000 good manufacturing jobs. Pence says, “to keep the momentum going, Congress must pass a trade deal that President Trump negotiated,” with Mexico and Canada. The House Democrats working group spent time in Mexico at the start of the week, focusing on enforcement of labor provisions included in the agreement. Democrats in the House are negotiating with U.S. Trade Representative Robert Lighthizer to reach a deal they can approve. Mexico ratified the agreement this summer, and Canada is expected to ratify the agreement following its federal election later this month. ************************************************************************************* Unions File Lawsuit Against USDA Slaughter Modernization Rule Food worker unions announced a lawsuit against the Department of Agriculture this week over the new swine slaughter modernization rule. The rule eliminates the line speed limits in pork slaughter facilities. United Food and Commercial Workers, along with other unions, filed a federal lawsuit seeking to stop the rule. A spokesperson says increasing pork plant line speeds “is not only a reckless giveaway to giant corporations, it will put thousands of workers in harm’s way.” The unions also say, “USDA admitted in its rule that it simply ignored the mounds of evidence that showed its actions will harm workers.” The lawsuit alleges that the new rule violates the Administrative Procedure Act because it is not backed by “reasoned decision-making.” The groups say that even at current line speeds, swine slaughter and processing workers face many job risks that can lead to severe injury, illness and death, adding there “is no evidence that line speed increases can be done in a manner that ensures food and worker safety.” ************************************************************************************* R-CALF Seeks to Stop RFID Ear Tag Mandate A lawsuit by R-CALF USA seeks to block the Department of Agriculture’s mandate of radio frequency identification, or RFID, ear tags for all animals required to have official identification. R-CALF and other groups filed the lawsuit last week seeking an injunction against Agriculture Secretary Sonny Perdue and Animal and Plant Health Inspection Service Administrator Kevin Shae, who together issued the RFID mandate in April of this year. Beginning January 1, 2023, USDA says all cattle and bison that are required to have official identification under current regulations must have official RFID ear tags. The lawsuit alleges that USDA’s mandate, along with the requirement that they obtain a premises identification number, and the elimination of all other animal identification options currently available to U.S. cattle producers, violate current traceability regulations. R-CALF USA CEO Bill Bullard says the move by USDA shows “USDA is catering to special interests,” adding “the agency wants to gift RFID ear tag manufactures even more profits.” ************************************************************************************* NPB: Prioritize Flu Vaccinations to Protect People and Pigs The National Pork Board is reminding producers to add flu vaccinations to their fall priority list. Pork producers are working through the on-farm tasks ahead of winter, including a focus on ventilation and rodent control. However, the Pork Checkoff says farm managers should also prioritize flu vaccinations for everyone working on the farm. Heather Fowler, DVM, director of producer and public health for the Pork Checkoff, says vaccinating farm employees “is the best thing producers can do to protect their families, co-workers and pigs from the flu.” A seasonal flu vaccination is a public health recommendation and part of the One Health approach to protect people, pigs and the global environment. Equally important, Fowler says farms need to have sick-leave policies in place that encourage workers to stay home if they are suffering from flu-like respiratory symptoms. Find more tips and recommendations to how to best protect your animals and employees from the flu at www.pork.org. ************************************************************************************* AFBF Opens Convention Registration The American Farm Bureau Federation Tuesday announced the opening of online registration for its 2020 annual meeting. AFBF will host the 101st Annual Convention & Trade Show, January 17-22, 2020, in Austin, Texas. Attendees will learn about the policies and perspectives affecting their farms, ranches or agribusinesses and gain deep insight into current trends impacting food production. With a focus on AFBF’s theme for the year, 2020 Vision: Sustaining America’s Agriculture, the convention will bring thousands of farmers and ranchers from around the country together to hear from powerful speakers on subjects ranging from trade, broadband and the farm economy to business development, consumer engagement and technology. AFBF President Zippy Duvall notes agriculture is at a crossroads, adding “it has never been more important for farmers and ranchers to have the latest information about the challenges and opportunities we face.” Duvall says the convention is “unique in its ability to inform, engage and unite farmers and ranchers.” Find more information and registration details at www.fb.org. ************************************************************************************ John Deere Collectors 2020 Conference Announced Organizers recently announced the 11th Gathering of the Green Conference in Davenport, Iowa. The event, planned for March 18-21, 2020, is a conference for John Deer enthusiast and collectors. Organizers say the conference site at the RiverCenter in downtown Davenport, Iowa, will transform into a County Fair atmosphere with elaborate displays that focus on the 2020 theme, "It's Fair Time.” Gathering of the Green board member Ken Reese says it’s also important because county fairs “were an important place for Deere and John Deere Dealers to exhibit and market their latest equipment in the 1930-1970's." The Gathering of the Green offers more than 60 workshops for attendees and typically includes a collection of old John Deere tractors and implements, along with collectible items. Organizers of the event are all volunteers who are members of one of four tractor clubs in the Quad Cities region. Conference registration is now open. Conference details are available on the Gathering of the Green's website at www.gatheringofthegreen.com.
| Rural Advocate News | Wednesday October 9, 2019 |
Washington Insider: New Dimension to Trade Fight Bloomberg is reporting this week that the Trump administration has placed eight of China’s technology giants on a blacklist over alleged human rights violations against Muslim minorities—and that China says that it may retaliate. Asked Tuesday about Chinese reactions, foreign ministry spokesman Geng Shuang told reporters “stay tuned.” He also denied that the government abused human rights in the far west region of Xinjiang. “We urge the U.S. side to immediately correct its mistake, withdraw the relevant decision and stop interfering in China’s internal affairs,” Geng said. “China will continue to take firm and forceful measures to resolutely safeguard national sovereignty, security and development interests.” The administration’s move, which was announced after U.S. markets closed, came on the same day negotiators from the two sides began working-level preparations for high-level talks set for Thursday in Washington. A U.S. Commerce Department spokesman said the “action is unrelated to the trade negotiations,” and China confirmed Vice Premier Liu He would lead the delegation as planned. Bloomberg reported that U.S. equity-index futures fell, reversing an earlier gain, while European stocks slipped to snap a two-day advance. U.S. futures fell after China said it strongly opposed the “blacklist” decision. Equity benchmarks across Asia had climbed earlier as trading showed little concern about ongoing unrest in Hong Kong. The blacklist, first reported by Reuters, takes the president’s economic war against China “in a new direction,” marking the first time the administration has cited human rights as a reason for action, Bloomberg said. Past moves to blacklist companies such as Huawei Technologies Co. have been based on national security. Companies on the blacklist include two video surveillance companies – Hangzhou Hikvision Digital Technology Co. and Zhejiang Dahua Technology Co. – that by some accounts control as much as a third of the global market for video surveillance and have cameras all over the world. Also targeted were SenseTime Group Ltd. – the world’s most valuable artificial intelligence startup – and fellow AI giant Megvii Technology Ltd., which is said to be aiming to raise up to $1 billion in a Hong Kong initial public offering. Backed by Chinese e-commerce giant Alibaba Group Holding Ltd., the pair are at the forefront of China’s ambition to dominate AI in coming years. Entities on the list are prohibited from doing business with American companies without a government license, although in the past, some U.S. operations have maintained relationships with banned companies through international subsidiaries, Bloomberg said. Hikvision and Dahua were suspended from trading Tuesday. “Specifically, these entities have been implicated in human rights violations and abuses in the implementation of China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups” in Xinjiang, the U.S. Commerce Department said on Monday. The foreign ministry’s Geng accused the U.S. of having “sinister intentions.” “The measures taken by China to eliminate extremism from the roots are fully in line with Chinese law and international practice,” he said. “Hikvision strongly opposes today’s decision by the U.S. government. It will hamper efforts by global companies to improve human rights around the world,” the company said. Megvii said the U.S. had “no grounds” to put it on the list, and noted that Human Rights Watch had corrected a report that implicated the company. It added that it hadn’t earned revenue from Xinjiang in the first part of the year and the impact on its business from the designation was minimal. The blacklist comes as the administration faces growing pressure at home to support pro-democracy protests in the Chinese-controlled territory of Hong Kong. The administration’s move targets Chinese surveillance companies involved in the crackdown in Xinjiang, where as many as a million Uighur Muslims have been placed in mass detention camps, prompting global criticism. The White House in May had readied the sanctions package for surveillance technology companies accused of human rights violations but decided to hold back because of the trade negotiations. In June, the administration again considered the sanctions and had planned to roll them out with a human rights speech by Vice President Mike Pence on the anniversary of the Tiananmen Square massacre, Bloomberg reported. The speech was postponed indefinitely, so that Trump could secure a meeting with Chinese leader Xi Jinping in Osaka, Japan. Also to be placed on the Commerce Department’s “entity list” are the Xinjiang region’s public security bureau and 18 other municipal and county public security bureaus as well as the province’s police college. So, we will see. The move against China’s surveillance companies is likely to generate strong support some quarters of the U.S., observers note, but if it also blows up this week’s trade talks, it may also prove to be a high political hurdle for U.S. groups already facing sharp reductions in important overseas markets, including China, Washington Insider believes.
| Rural Advocate News | Wednesday October 9, 2019 |
Trump Again Dashes Talk of Partial Trade Deal with China President Donald Trump at the White House Monday said that was not what the U.S. was looking for in the talks. “I think it’s not what we prefer at all,” he noted. “They are starting to buy a lot of our agricultural products. You see that. They’re coming in very strong on pork.” Trump said he did not know if the ag purchases would be considered a “partial” agreement. “My inclination is to get a big deal. We have come this far. But I think that we will just have to see what happens. I would much prefer a big deal. And I think that’s what we are shooting for.” But Trump also injected his brand of humor into the situation, noting both sides have top people in the negotiations. “If I do not think they are doing a good job, I will fire them and I’ll go over and take their place.” The situation remains uncertain on the prospects for a deal and some observers remain downbeat on whether the U.S. and China can bridge their differences and come to terms on an overall package.
| Rural Advocate News | Wednesday October 9, 2019 |
Wheeler Sheds More Light on Coming Details of Biofuel Plan In an interview with the Red River Farm Network on Tuesday, EPA Administrator Andrew Wheeler offered some additional explanation on what the Friday announcement means. The action, he explained, strikes a balance so that EPA can continue offer the small refinery exemptions (SREs). “We will estimate what that number will be and add it to the RFS for next year so that after the small refineries are exempted, the final number will still end up being 15 billion gallons.” For corn farmers, he noted, that means there will be a “15-billion gallon certainty” and also means that the SREs will be preserved for “those refineries that truly are in jeopardy of going out of business because of the RFS.” EPA will come out with the supplemental plan for the 2020 biofuel and 2021 biodiesel levels in the “next week or so,” Wheeler said, with a 30-day comment period. Asked if the action is to account for the SREs that have been granted so far, Wheeler stressed, “It is not retroactive. It is going forward.” He noted EPA has already proposed the Renewable Volume Obligations (RVOs) for 2020 biofuel. “We will go out for a supplemental proposal in the next few days and increase that for 2020, so that in 2020, the number will be set somewhere above 15 billion gallons knowing that we will be providing some small refinery relief so that we net out at 15 billion gallons.” That way the 15 billion gallons of conventional ethanol that is in statute will be met “so we provide that certainty so that corn farmers will be able to produce up to 15 billion gallons of ethanol.”
| Rural Advocate News | Wednesday October 9, 2019 |
Wednesday Watch List Markets Here in early October, a winter storm is developing in the northwestern U.S. Plains and will catch many row crops not ready. Any comments from U.S. or Chinese trade officials are also getting attention ahead of Thursday's new round of talks. At 9:30 a.m. CDT, the U.S. Energy Department releases its weekly energy inventories, including ethanol. Minutes from the latest Fed meeting will be posted at 1 p.m. CDT. Weather An intense winter storm system will bring snow, strong winds and season-ending cold to the Northern Plains Wednesday. Ahead of the storm, rain will develop in the Southern Plains. Temperatures in advance of the storm system will be mild. Winter storm and freeze bulletins cover most of the Plains through Thursday.
| Rural Advocate News | Tuesday October 8, 2019 |
House Democrats in Mexico for USMCA Considerations House Democrats are wrapping up a two-day trip to Mexico to discuss the U.S.-Mexico-Canada Agreement. Led by House Ways and Means Committee Chairman Richard Neal, the visit comes as the Democratic Working Group on NAFTA 2.0 “continues to engage in productive discussions with the U.S. Trade Representative regarding important improvements to the agreement,” according to Neal. Representative Neal also leads the working group on USMCA. The lawmakers are meeting with representatives from the Mexican Government as well as local workers, focusing on enforcement of the agreement regarding labor standards in Mexico. House Speaker Nancy Pelosi last week maintained “we are making progress” on reaching an agreement to pass the trade deal. The group forwarded a counterproposal to the White House just over a week ago. Lawmakers Joining Neil on the trip include Representatives Bill Pascrell of New Jersey, Dan Kildee of Michigan, Jimmy Panetta of Jimmy Gomez of California. The group maintains a commitment to reaching an agreement with the White House to pass the trade agreement. ************************************************************************************* Meat Institute Challenging California Prop 12 The North American Meat Institute Friday filed a lawsuit challenging the constitutionality of California’s Proposition 12, The Farm Animal Confinement Initiative. The Meat Institute opposes the law because the organization claims the law will "hurt the nation's food value chain by significantly increasing costs for producers and consumers." The lawsuit, filed in the United States District Court for the Central District of California, asks the court to halt implementation of the law by granting a preliminary injunction. The Meat Institute alleges that Prop 12 violates the commerce clause and the federal structure of the United States Constitution. The Constitution prohibits states from discriminating against interstate and foreign commerce, regulating commerce outside of their borders or imposing undue burdens on interstate and foreign commerce. Meat Institute President and CEO Julie Anna Potts says if the law is allowed to stand, “California will dictate farming practices across the nation.” Enacted in November 2018, Prop 12 imposes space requirements regarding breeding pigs and veal calves within California, and obligating out of state producers to comply. ************************************************************************************* AFIA Awarded Funds to Conduct Market Assessment of Vietnam The American Feed Industry Association has received funding from the Department of Agriculture's Foreign Agricultural Service to conduct a market assessment in Vietnam. The goal and focus of the assessment will be to identify how to improve the availability and transparency of distribution channels. The effort will address sanitary and phytosanitary issues and other non-tariff barriers, thereby increasing prospects for U.S. trade and investment. Once the market assessment is completed, AFIA will work with USDA on implementing and addressing the recommendations from the assessment. AFIA, with the support from experienced, reputable consultants and in collaboration with FAS and existing resources in Vietnam, will implement the market assessment over the next six months. Vietnam is one of the fastest growing economies in Asia, maintaining an average six percent annual GDP growth over the past ten years. In recent years, Vietnam has also risen as a leading agricultural product importer. The key driver of the local feed industry has been the Vietnamese hog industry. ************************************************************************************* AEM: Manufacturers Welcome Biofuels Reallocation The Association of Equipment Manufacturers joins corn belt farm groups in applauding the Trump Administration for reallocating biofuel demand displaced by waivers. President Donald Trump’s plan to reallocate biofuels lost to small refinery waivers announced last week will reopen the rulemaking process to account for the volumes waivers displace. The National Corn Growers Association points out the latest round of waivers increased total waived biofuels demand to 4.04 billion gallons under the Trump Administration. In addition to the commitment to redistribute waived gallons, the Trump administration is also proposing to take further steps supported by farmers, including removing other barriers and supporting infrastructure to help grow demand for higher blends of ethanol. AEM says reallocating the ethanol gallons lost through small refinery waivers will directly benefit the 1.3 million employees in the equipment manufacturing industry. AEM President Dennis Slater says the organization is “grateful the President recognizes the importance of the RFS to farmers, equipment manufacturers and the entire agriculture community.” ************************************************************************************* NCBA Opens 2020 Cattle Industry Convention Registration The National Cattlemen's Beef Association recently opened registration and housing for the 2020 Cattle Industry Convention and NCBA Trade Show. NCBA encourages attendees register early, as convenient housing will fill quickly. The event, held in San Antonio, Texas February 5-7, 2020, includes annual meetings of NCBA, the Cattlemen's Beef Board, American National CattleWomen, CattleFax and the National Cattlemen's Foundation. U.S. astronaut and retired U.S. Navy Captain Scott Kelly will share his lessons from space during the Opening General Session, and other noted speakers will be on hand to inform, energize and motivate audiences. The convention will again be preceded by 27th annual Cattlemen's College, which is famous for sessions that can help generate high returns for cattle operations. NCBA President Jennifer Houston of Tennessee says the convention represents an important annual get-together for cattlemen and women from around the country, adding “there are valuable education, information, entertainment and engagement opportunities” at the event. To register and secure housing, visit www.beefusa.org. ************************************************************************************* USDA Invests $152 Million to Improve Broadband Service in 14 States The Department of Agriculture Monday announced $152 million in rural broadband development funding. The funds support developing and improving rural broadband service through 19 projects across 14 states. USDA rural development deputy secretary Donald LaVoy says the effort will expand access to essential health, educational, social and business opportunities. USDA is making the investments through the Community Connect Grant Program, the Telecommunications Infrastructure Loan Program and the Rural Broadband Access Loan and Loan Guarantee Program. USDA says investing in telecommunications infrastructure connects businesses to customers, farmers to markets, and students to a world of knowledge. As part of the investments, a $34 million loan will upgrade fiber connections in Kentucky, benefitting 5,300 customers. A $3 million loan will help enhance broadband in southwest Virginia, and another $850,000 loan will help develop a fiber network in Morton County, North Dakota. The funds are part of the Interagency Task Force on Agriculture and Rural Prosperity effort by President Donald Trump. A complete list of funded projects is available online at visit www.rd.usda.gov.
| Rural Advocate News | Tuesday October 8, 2019 |
Washington Insider: Declining Expectations for Trade Talks There was bearish trade news on Monday as Bloomberg, and others, report that Chinese officials are signaling that they are “increasingly reluctant to agree to a broad trade deal pursued by President Trump.” The reports came just ahead of negotiations this week that raised hopes of a potential truce. It seems that in recent meetings with U.S. visitors to Beijing, Chinese officials have emphasized that the range of topics they’re willing to discuss has narrowed considerably, Bloomberg said. Vice Premier Liu He, who will lead the Chinese contingent in the talks that begin Thursday, told visiting dignitaries he would bring an offer to Washington “that won’t include commitments on reforming Chinese industrial policy or the government subsidies that have been the target of longstanding U.S. complaints,” Bloomberg said. That development would appear to take one of the administration’s core demands off the table. In addition, it is “emblematic of what analysts see as China’s strengthening hand” as the Trump administration faces an impeachment crisis and a slowing economy blamed by businesses on the disruption caused by the president’s trade wars. Bloomberg said that the administration still denies that the impeachment inquiry is affecting trade talks. “Any attempt to portray anything different is an attempt to weaken the U.S. hand at the negotiating table,” they argue, and would be a “miscalculation” by the Chinese. Bloomberg observed that China is beset by its own escalating political crisis in Hong Kong and was drawn into the Washington political furor last week after President Trump called for a Chinese investigation into his Democratic rival, Joe Biden, and the former vice president’s son – moments after threatening another escalation in the trade fight. Still, the president insisted on Friday that there’s no linkage although his latest comments suggest why Chinese leaders, already frustrated with what they see as his impetuous conduct in the talks, may see room to take advantage. China’s leadership “are interpreting the impeachment discussion as a weakening of Trump’s position, or certainly a distraction,” said Jude Blanchette, an expert on China’s elite politics at the Center for Strategic and International Studies. Their calculation is that “Trump needs a win” and is willing to make compromises on substance as a result, he said. On Monday, the White House said the gathering “will look to build on the deputy-level talks of the past weeks. Topics of discussion will include forced technology transfer, intellectual property rights, services, non-tariff barriers, agriculture, and enforcement.” The President has said repeatedly he would entertain only an all-encompassing deal with China, and he remains firm in that view, Bloomberg said. “We’ve had good moments with China. We’ve had bad moments with China. Right now, we’re in a very important stage in terms of possibly making a deal,” the president told reporters on Friday. “But what we’re doing is we’re negotiating a very tough deal. If the deal is not going to be 100% for us, then we’re not going to make it.” However, Bloomberg reported that contacts that resumed over the summer after a breakdown in May have focused on how to resume negotiations and avoid further escalating the tariff fights that have unnerved financial markets. It also notes that recent discussions have centered more on a timeline for implementing a limited deal rather than the substance of provisions where the two sides are at odds. Administration officials view the agenda as having three-phases, the report said. It would involve large-scale purchases of U.S. agricultural and energy exports by China, implementing intellectual-property commitments China made in a draft agreement this year and, finally, a partial rollback of U.S. tariffs – elements already discussed earlier with the Chinese. Still, if China refuses to engage in any discussions on its industrial policy, those plans could be scuttled, Bloomberg said. In spite of the president’s earlier statement, Bloomberg argues that hopes have always been limited that China would agree to give up its economic model in a deal with the U.S. It also says that such ambitions likely scuttled earlier efforts to secure “a few substantive commitments from China to abandon the sort of industrial policies the administration and others have complained about,” Bloomberg said. That draft focused on securing more Chinese transparency on the extent of its subsidies and included a commitment “essentially to disavow Made in China 2025,” Xi Jinping’s plan for Chinese domination of key 21st century industries such as artificial intelligence, robotics and electric vehicles. China pushed back on those proposals even though they lacked a specific schedule for removing government subsidies. U.S. Trade Representative Robert Lighthizer declined to comment on the current state of negotiations but Bloomberg suggests that while he’s unlikely to accept any Chinese offer that doesn’t address industrial subsidies or policy, he may be willing to embrace “sequencing” a deal and an “early-harvest” agreement as long as broader talks continue. Still, observers also believe that the administration’s trade chief probably would need some kind of commitment resembling a concession on subsidies and industrial policy to sell the agreement at home. So, we will see. Both sides are under pressure, and some form of agreement seems possible. However, both tend to take “tough” positions as part of their public image. Clearly, the negotiations will be tense and contentious and should be watched closely as they proceed, Washington Insider believes.
| Rural Advocate News | Tuesday October 8, 2019 |
Questions Continue on Administration Biofuel Plan The package or reforms to U.S. biofuel policy announced Friday (October 4) continues as an attention point given the lack of some key details in that plan. EPA is expected to release the supplemental plan and open the comment period with a goal of still finalizing the 2020 biofuel and 2021 biodiesel levels by the November 30 statutory deadline. One focus will be on how EPA accounts for small refinery exemptions (SREs) as EPA officials stressed last week it would not be accounting for the waivers already granted. Biofuel interests will also want to see the specific increased levels for biofuel use in 2020. President Donald Trump will be in Minnesota on Thursday for a campaign-style rally and that could be the format for him to talk more about the effort given Minnesota being a prominent biofuel producer and a state that has taken several steps to encourage biofuels use. In Washington Monday, Trump said the deal will mean 16 billion gallons of corn ethanol would be used in 2020.
| Rural Advocate News | Tuesday October 8, 2019 |
Trade Talks Between US and China Underway in Washington Deputy-level talks between the U.S. and China got underway in Washington Monday and are expected to continue today. The talks will then shift to higher-level officials on Thursday and Friday. U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steve Mnuchin will meet Thursday and Friday with Chinese Vice Premier Liu He. There have been both positive and negative signals emerging ahead of the talks. Monday, President Donald Trump insisted there was a good possibility for a trade deal with China, but he did not signal when that could take place. Trump administration officials and business leaders have discussed ways each side could make concessions to yield a mini deal, to delay the October 15 and December 15 tariffs or to jump start drawn-out negotiations, some sources and reports note.
| Rural Advocate News | Tuesday October 8, 2019 |
Tuesday Watch List Markets The U.S. Labor Department issues its index of producer prices at 7:30 a.m. CDT and that is the only official report on Tuesday. The weather forecast draws attention this week with a winter storm developing in the western Canadian Prairie. Any comments from trade officials also get noticed ahead of the resumption of U.S.-China trade talks on Thursday. Weather Dry, warm and windy conditions will cover all primary crop areas Tuesday ahead of an intense storm system for mid to late week.
| Rural Advocate News | Monday October 7, 2019 |
EPA, USDA Agree on RFS “Fix” Ag Secretary Sonny Perdue and Andrew Wheeler, Administrator of the Environmental Protection Agency, agreed on a plan to boost renewable fuel production and improve the Renewable Fuels Standard. Perdue says this agreement builds on the success of the year-round E15 rule. “This forward-looking agreement makes improvements to the RFS program that will better harness the production of our farmers and ensure America remains energy dominant,” Perdue says. Both agencies will take a series of steps to help boost biofuels. The EPA will propose and request public comment on expanding biofuel requirements beginning in 2020. EPA will seek comment on its actions to ensure that more than 15 billion gallons of conventional ethanol will be blended into the nation’s fuel supply beginning next year. They also will ensure that the volume obligation for biomass-based diesel will be met. EPA will also include accounting for relief expected to be provided for small refineries through RFS waivers. Building on year-round E15, EPA will initiate a rulemaking process to streamline labeling and remove other barriers to the sale of E15. EPA will also evaluate options for RIN market transparency and reform. USDA will look for opportunities for infrastructure projects to help facilitate higher biofuel blends. The administration will continue to work to address ethanol and biodiesel trade issues. ********************************************************************************************** Ag Groups Respond to Biofuel Announcement Growth Energy CEO Emily Skor was pleased with the White House announcement that President Trump will uphold the integrity of the Renewable Fuels Standard. “It’s been a long process,” she said, “but when the chips were down, the president delivered for farm families and biofuels producers.” The National Corn Growers Association says the announcement that the Environmental Protection Agency will reopen the rulemaking for the 2020 RFS volumes and propose to account for waivers in volume requirements allows the EPA to follow the law and restore integrity to the RFS. NCGA President Kevin Ross says the announcement, “Gets the RFS back on track.” The National Biodiesel Board says nine producers from across the country closed their doors or reduced operations and laid off more than 200 employees. The NBB says this announcement is the first step in reversing the loss of production and restoring those jobs. NBB Vice President of Federal Affairs Kurt Kovarik says, “The biodiesel industry relies on the RFS program to support continued growth and market development. While the proposal addresses the lost gallons from future RFS exemptions, it doesn’t provide for additional volumes of biomass-based diesel in 2021.” ********************************************************************************************** U.S. Trade Deficit Narrow with China The United States’ trade deficit with China is as small as it’s been in recent months. U.S. exports hit a five-month high, which Bloomberg says is a possible sign of goodwill from China as the two nations continue to try and resolve their trade war. According to data released late last week by the Commerce Department, the trade gap shrank to a seasonally adjusted $28.9 billion. Exports increased by $10 billion while imports dropped slightly to $38.9 billion. Even with the new numbers, imports and exports with China have declined significantly since the trade war began in 2018. China is now the third-largest U.S. trading partner this year, behind Mexico and Canada, after it was number one in 2018. So far this year, the U.S. merchandise deficit with China narrowed to a seasonally adjusted $238.4 billion over the first eight months of this year, compared to $270.1 billion through the same period in 2018. Since the end of August, the trade war has continued to escalate as additional duties went into effect on September 1. Others are set to rise or take effect on October 15 and December 15. Chinese officials are scheduled to visit Washington, D.C., for more trade talks this week. ********************************************************************************************** THC Testing Still a Challenge for Hemp Farmers The hype over hemp sparked a rush of enthusiasm from farmers looking to add it to their crop rotations after it was legalized in the 2018 Farm Bill. Stuck in a declining farm economy, Politico says hemp offers a new source of income for farmers who’ve been hit from all sides by a trade war with China, a stretched-out cycle of low commodity prices, as well as a series of natural disasters. The potential of an economic payday is calling a lot of farmers to try to grow the crop for the first time. However, legalizing hemp has been far from a smooth ride. Farmers have had a series of challenges as they continue to figure out the hemp process from growing to harvesting to selling the crop. One of the biggest complications involves the THC levels, which growers have to keep a close eye on to make sure it doesn’t climb above .3 percent. That’s the legal threshold that technically classifies the crop as marijuana, a cannabis cousin of hemp. Measuring THC is a patchwork procedure between states. USDA is under pressure to overwrite that patchwork with a national standard on THC testing. ********************************************************************************************** European Union Reacts to New Trump Tariffs European leaders and businesspeople slammed the Trump Administration’s plans to impose large tariffs on a wide array of European goods. The tariffs are going in place after the World Trade Organization ruled in favor of the U.S. in a longstanding dispute over subsidies given to Airbus, a European aircraft manufacturer. The administration is set to impose tariffs on roughly $7.5 billion in European goods, pending WTO approval. The Washington Post says goods facing a higher duty include Italian cheeses and one of Trump’s favorite targets, French wine. The tariffs will be as high as 25 percent on agricultural and industrial products and could take effect as soon as October 18. The director of Europe’s largest wine and spirits lobby says the retaliatory U.S. tariffs will hit industries that aren’t related to the core of the dispute, which is airline subsidies. The EU’s top trade official, Cecilia Malmstrom, says regardless of the WTO ruling, she opposes retaliatory U.S. countermeasures. “We say that the U.S. opting for applying countermeasures now would be shortsighted and counterproductive.” ********************************************************************************************* New York City Bans Processed Meats in School Lunches Kids are notorious for their love of hot dogs but they won’t get them in New York City schools this year for lunch. A Fox 5 New York Dot Com article says the Board of Education will no longer allow processed meats in public school cafeterias following a resolution passed by the New York City Council. Councilman Fernando Cabrera is a Bronx Democrat who sponsored the resolution. “We’re talking about hot dogs, we’re talking about cold cuts, and we’re talking about any processed meats,” he says. Salami and cheese sandwiches are no longer on the menu, as well as bologna and cheese sandwiches, cheese and turkey ham sandwiches, and pre-sliced Canadian turkey bacon and turkey ham. The Board of Education says it banned the meats that are defined by the World Health Organization as “processed.” The city has already stopped serving any meat products on Mondays, which Mayor Bill de Blasio says is a way to help reduce greenhouse gasses.
| Rural Advocate News | Monday October 7, 2019 |
Washington Insider: The Recent US Jobs Report Looking back on Friday’s jobs report, there is considerable disagreement over just what the trends mean, but Bloomberg say a clear signal is emerging: The world’s biggest economy is slowing down.” The amount of the slowdown is not clear, however. “Friday’s report contained ammo for the optimists, as well as the pessimists – and plenty for the Federal Reserve to ponder ahead of its next interest-rate decision,” Bloomberg opined. Clearly, the headline number for new jobs fell short of expectations, Bloomberg says – although the president looked past that, focusing on the unexpected drop in unemployment to a half-century low of 3.5%. Traders may have focused on that number too, paring expectations for a third straight rate cut. Fed chief Jerome Powell didn’t even mention the jobs report when he told a Washington audience Friday that the economy is in a “good place” – but stopped short of any guidance about what to expect from the Oct. 29-30 rates meeting. Bloomberg concludes that a cut in interest rates is still the likeliest outcome following a week of data that showed U.S. factories already in recession and service industries in the weakest state for three years. “The economy is slowing,” Pacific Investment Management Co.’s chief U.S. economist, Tiffany Wilding, said. The jobs report wasn’t as bad as it could have been, she hedged, but the Fed is likely to cut again in October “because of broader indications of slowing growth.” Bloomberg also sorted out some of the “up-and down-arrows” from the report that U.S. monetary policy makers are looking at now. Bloomberg thinks the “disappointing” wage gains are “better than they look, although growth in average hourly earnings unexpectedly cooled to 2.9% from 3.2%. Production and non-supervisory employees, the bulk of the workers, did better. Their pay rose 3.5%, down only slightly from the previous month’s decade-high of 3.6%. In addition, Bloomberg sees the decline in unemployment as an “unvarnished up-arrow.” The jobless rate was the lowest since December 1969 and below all estimates in Bloomberg’s survey. The participation rate, which measures the proportion of working-age people who are employed, held at 63.2%. Even the demographic data look pretty solid, Bloomberg says. Black unemployment held at 5.5%, a record low going back to the early 1970s, while the jobless rate among Hispanics fell to a new all-time low of 3.9%. The White House says the numbers as a sign of progress and Fed policy makers likely agree, since “they’ve spoken frequently this year about making sure economic gains are reaching more Americans.” Also, the underemployment rate slipped to 6.9%, the lowest since 2000, from 7.2%. Since this rate includes part-time workers who’d prefer a full-time position, and those who aren’t actively looking for work, it is watched closely by analysts. However, job growth is seen as “wobbling” as this year’s average rate of non-farm payroll gains fell to 161,000, down by a quarter from last year, while the figure for the private sector is down by a third to 143,000. “It’s quite mixed in that job creation has slowed but it’s still running above break-even rates,” said Michelle Meyer, head of U.S. economics at Bank of America Corp. Also, job growth in manufacturing and construction is “dimming fast” with the recent reading one of the weakest in the past couple of years. Construction is in the doldrums too, with employment growth well below last year’s pace. In terms of ag trade, among the recent market metrics being reported, is that Brazil is chipping away market share from America’s cotton producers and the world’s top exporters as the U.S.-China trade fight continues. Favored by a slumping currency against the American dollar, Brazil’s cotton growers have harvested their biggest crop yet and are preparing to ship the most volume ever to China, the top global importer. In the previous four years, Brazil produced 6% of China’s imports on average. This year, it’s expected to supply 23% of the imports, second only to Australia’s 26%, USDA forecasts. “The persistent U.S.-China trade battle continues to force unprecedented dislocations in global soybean and cotton trade flows, while the U.S. dollar strength dampens U.S. export competitiveness relative to Brazil and Argentina,” Tracey Allen, an agricultural commodity strategist for JPMorgan Chase Co., reported. Meanwhile, Brazil’s push into China comes at a time when American growers are also set to harvest their biggest crop in 14 years, with prices down 22% since the end of 2017. White House economic adviser Larry Kudlow noted that the U.S. team’s trade team will approach next week’s talks with China with everything “on the table.” The schedule, going forward, involves meetings with deputies on Monday and Tuesday and with senior officials later in the week, the White House said. So, we will see. There is a great deal of concern about the economy, as well as with both east and west trade tensions – fights producers should watch closely as they intensify, especially given the growing political tensions, Washington Insider believes.
| Rural Advocate News | Monday October 7, 2019 |
WTO DSB meeting set for October 14 The WTO has confirmed that a special meeting of the Dispute Settlement Body (DSB) will be held October 14 to consider the U.S. request to take retaliatory action against the European Union (EU) over subsidies the bloc has provided to Airbus – subsidies the WTO ruled were counter to EU trade commitments. The WTO authorized the U.S. to take up to $7.5 billion in retaliatory actions against the WTO over the situation, the largest in WTO history. The U.S. announced Tuesday it would put tariffs in place on a host of EU goods starting October 18, prompting the special meeting request of the DSB. The action will be approved under what is called the "negative consensus" rule – the U.S. request can only be blocked if all members in attendance reject the request.
| Rural Advocate News | Monday October 7, 2019 |
USDA’s Perdue Clearly Focused on E15 Relative to Biofuel Policy The long-awaited biofuel package from the Trump administration was released Friday, but still had more questions it seems than answers. Even USDA Secretary Sonny Perdue did not have a lot of details to offer in remarks he made after the announcement. Perdue told Agri-Talk that certainty was the biggest thing this announcement will bring. The administration is seeking to “follow the letter of the law,” Perdue remarked, referring to the RFS requirement that 15 billion gallons of conventional ethanol (primarily corn-based ethanol) be used in the nation’s motor fuel. But the focus for USDA will especially be on E15, Perdue noted, explaining they are “working on ideas” and “listening to the industry on ideas of what it will take to grow E15 demand. What is the best way we can quickly make E15 the fuel of choice.” Perdue said there will still be small refinery exemptions (SREs) issued, although “maybe not at 100 percent, but maybe 50 percent.” The use of a three-year average of SREs is one way that those “will be accounted for,” Perdue said. While reallocating those SREs was looked at, he noted it was “a hill too high to climb.” But EPA will be using that three-year average to “maintain the minimum 15 billion gallons” for conventional ethanol, he observed. One way to bolster E15 is “those pumps capable and certified for E10 can be used for E15,” Perdue said. Noting that E15 fuel is typically cheaper, he predicted: “If we give customers the choice, I am pretty confident of the choice they will make.”
| Rural Advocate News | Monday October 7, 2019 |
Monday Watch List Markets Markets will be watching weather forecasts for row crop harvest conditions and paying attention to any trade-related comments ahead of this week's trade talks between the U.S. and China. USDA's weekly report of export inspections kicks off at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Weather Moderate rain is in store from the Delta through southeastern Midwest Monday, offering some drought easing while slowing harvest. Dry conditions elsewhere will allow for harvest progress. A season-ending freeze is indicated for the Northern and western Plains and the northwestern Midwest this week, along with harvest-disrupting rain and snow.
| Rural Advocate News | Friday October 4, 2019 |
U.S. Implementing Tariffs on EU Products The U.S. will place tariffs on European Union food products. Following a World Trade Organization win, the U.S., announced the new tariffs, expanding a trade war with the European Union. The U.S. won the largest arbitration award in WTO history of $7.5 billion in a dispute over illegal subsidies to Airbus. Countermeasure tariffs will be applied to a range of imports from EU Member States, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies. The U.S. announced this week it will impose a 25 percent tariff on food products, including wine, scotch and cheese. The U.S. will also place a ten percent tariff on large civil aircraft products, and another 25 percent tariff on coffee, and some tools and machinery from Germany. USTR has the authority to apply a 100 percent tariff on affected products, and the authority to increase the tariffs at any time, or change the products affected. ************************************************************************************* DMC Payments Top $300 Million More than 22,000 dairy farmers enrolled in the new Dairy Margin Coverage program, paying out more than $300 million this year. The National Milk Producers Federation says none of the assistance would have occurred under the old Margin Protection Program. The DMC program replaced MPP in the 2018 farm bill. Monthly milk price/feed cost margins so far in 2019 have been above the $8 per hundredweight coverage cutoff that existed under MPP, but below the new $9.50 per hundredweight coverage limit under DMC. An analysis of the program found that under the old MPP rules, the total paid out under the entire program so far this year would have been $75,000, about $3 per farmer and a net loss after premium costs. Wisconsin signed up the largest number of farmers, while California enrolled the highest production volume of any state. NMPF CEO Jim Mulhern says, “The Dairy Margin Coverage program has proven its worth.” Enrollment into the program for 2020 begins Monday. ************************************************************************************* Senators Call for Financial Certainty for Rural Counties A group of Senators request any end-of-year legislation include reauthorization of programs to help counties with federal lands. The group seeks at least a two-year reauthorization of the Payments in Lieu of Taxes and the Secure Rural Schools and Community Self-Determination Act programs. The programs help rural counties containing tax-exempt federal lands to cover typical tax-funded services. Led by Senator Ron Wyden, a Democrat from Oregon, the bipartisan group of 31 Senators penned a letter to Senate Leader Mitch McConnell and Minority Leader Chuck Schumer outlining the request. The group says, “a short-term reauthorization of at least two years is critical to provide fiscal certainty for counties containing federally-owned lands.” The Senators say Congress has an obligation to ensure counties with large swaths of federally-owned, tax-exempt forests and rangelands can adequately provide essential services for their residents. Nearly 1,900 counties rely on the funding to cover basic services, including law enforcement, mental health programs and libraries. The Payments in Lieu of Taxes program expires at the end of this year, while the Secure Rural Schools and Community Self-Determination Act expired last year. ************************************************************************************* Study Finds Hydrologic Models may be Inaccurate A new study by the University of Illinois finds hydrologic models that simulate and predict water flow can be difficult to interpret correctly. The study focuses on the Soil and Water Assessment model, which simulates water circulation by incorporating data on land use, soil, topography, and climate. The models are typically used to estimate how natural systems respond to different scenarios, such as changes in climate, land use, and soil management. The input from the models can inform policy and regulatory decisions regarding water and land management practices. Model accuracy is important to ensure policy decisions are based on realistic scenarios. A researcher involved in the study says if the model is not representing reality, "you are going to draw the wrong conclusions.” And, wrong conclusions will lead to wrong policies, “which can greatly affect communities that rely on the water supply.” The researchers recommend using a combination model, which integrates two different processes to limit variability in results. Funding for the research was provided by the Department of Agriculture’s National Institute for Food and Agriculture. ************************************************************************************* USDA Invests $11M in Research That Will Support Specialty Crop Farmers The Department of Agriculture’s National Institute of Food and Agriculture Thursday announced $11 million in research funds for specialty crop farmers. The funding will focus on applying innovative solutions to pest management problems “that often are otherwise not available to specialty crop farmers,” according to a USDA statement. The investment is made through the Minor Crop Pest Management Program known as the Interregional Research Project. The program enables crop protection technology often designed for field crops, but equally safe, effective and economical for growers of specialty crops. As part of the funding investment, four universities across different U.S. growing regions will lead regional programs to generate additional data for registration of conventional and bio-based crop protection technology for specialty and minor crops. The efforts require effective collaborations among grower organizations, federal agencies, the private sector, and land-grant colleges and universities. A list of the four universities and their research projects is available on the NIFA website, https://nifa.usda.gov/. ************************************************************************************* Smithfield Foods Collects 130,000 Pounds of Food for Feeding America Employees of Smithfield Foods collected more than 130,000 pounds of food in support of Hunger Action Month, the Feeding America nationwide network of food banks' awareness campaign. Smithfield announced the donation this week, stating, “We're proud to have our employees go above and beyond to support their neighbors in need.” The campaign from Feeding America seeks to raise awareness of the fact that 37 million Americans, including more than 11 million children, are food insecure, and inspire action. For 11 years, Feeding America, the nation's largest domestic hunger-relief organization with a nationwide network of 200 food banks and 60,000 partner food pantries, has dedicated the month of September to re-igniting its commitment to ending hunger. In addition to employee efforts during Hunger Action Month, Smithfield works with Feeding America throughout the year for the company's hunger-relief initiative Helping Hungry Homes. Since the program's inception in 2008, Smithfield has donated more than 140 million servings of protein across all 50 U.S. states.
| Rural Advocate News | Friday October 4, 2019 |
Washington Insider: New Tariffs for European Exports The Trump administration said Wednesday that it would impose tariffs on European aircraft, French wine and cheese, Spanish olive oil and other goods starting Oct. 18, the New York Times reported this week. The tariffs are part of a WTO decision over a long-running complaint over subsidies given to the European plane maker Airbus and are intended to allow the United States to recoup some of the losses the American plane maker Boeing sustained because of Europe’s trade practices. The WTO said the U.S. could to impose tariffs on $7.5 billion in trade from Europe annually, and the new duties can be applied “until the two sides reach a negotiated settlement, or the organization decides that Europe is in compliance with its rules.” The tariffs are seen as likely to raise prices for American customers who import products from Europe and to affect airlines, manufacturers and consumers at the grocery store, the Times said. It said the list of products affected “reads like a gourmet shopping list, with the administration planning to place a 25 percent tax on imports of Parmesan cheese, mussels, coffee, single malt whiskeys and other agricultural goods from Europe.” The WTO decision ends a roughly 15-year dispute over the financial assistance Europe provides to its major plane maker. It followed a ruling last May that Europe had illegally subsidized several Airbus models and is the largest authorized retaliation in the organization’s history. The U.S. Trade Representative (USTR) said it plans to levy a 10 percent tariff on European aircraft and a 25% tariff on agricultural goods, industrial products and other imports “in an effort to pressure the European government to abandon its subsidies.” USTR Robert Lighthizer said. “We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers.” European officials pushed back hard on the U.S. announcement and said while they are eager to negotiate a solution they also are prepared to respond with levies on American goods. The WTO is considering a parallel case that the EU brought against the U.S. for subsidizing Boeing and the EU has its own list of $20 billion in American products that it could tax in response. However, Cecilia Malmstrom, the European commissioner for trade, said that the European Union had been trying to head off the possibility of American retaliation through negotiations, but had failed so far. The U.S. had been receptive to further discussions but not to the idea of delaying its tariffs, she said. The USTR argued that the Europeans had not put forward a sufficient solution and that the nature and size of the subsidies provided by the EU dwarfed anything that the United States provided to domestic companies. An escalating trade spat with Europe would open another front in the global trade war that the administration has undertaken in an effort to change trade terms that it claims have long disadvantaged the U.S. The president already has imposed tariffs on more than $360 billion of products from China in addition to levies on washing machines, solar panels and steel and aluminum from Japan and Europe. Those actions have raised the average American tariff rate on imported goods to levels not seen in decades — the U.S. now has the highest tariff levels of any of the Group of Seven industrialized nations. In a report published Tuesday, the WTO slashed its forecast for global trade growth for this and next year as trade tensions between the U.S. and the EU have already been running high. The governments announced in mid-2018 that they would work toward a trade agreement but negotiations quickly stalled over a dispute about agriculture which the U.S. insists should be included in the talks. President Trump has been fiercely critical of Europe’s trade policies and is considering hitting the eurozone with additional tariffs this fall on cars exported to America, the Times said. Chad P. Bown, a senior fellow at the Peterson Institute, said the planned exchange of tariffs highlighted the failure of the U.S. and Europe to work together to write more comprehensive rules about global trade, particularly subsidies. That could have major implications for China, which the U.S. and other countries have criticized for unfairly subsidizing its companies and undercutting other companies around the world. Even though the new tariffs would be in line with global rules they still would weigh on the economy and American companies. Airbus said that the company spent $50 billion purchasing products in the United States in the last three years — more than it spent in France, Germany or Britain. And if the U.S. does impose tariffs on aircraft or aircraft parts, the company said, it would “create insecurity and disruption not only to the aerospace industry, but also to the broader global economy.” They “would have a negative impact on not only the U.S. airlines but also U.S. jobs, suppliers and air travelers,” Guillaume Faury, the company’s chief executive said. So, we will see. The new U.S.-EU tensions come amid growing concerns about the economy and about the next steps expected by the Fed and others. Certainly, these developments should be watched closely by producers and others as they are revealed in the coming weeks, Washington Insider believes.
| Rural Advocate News | Friday October 4, 2019 |
Expectations Rising For Biofuel Announcement The Trump administration’s EPA may use partial waivers under the Small Refinery Exemptions (SREs) as part of a biofuel package, according to Reuters. The news service previously reported that EPA ignored advice from the Department of Energy that some of those applying for SREs should get only partial waivers. While most reports indicate the deal will be announced next week, sources have indicated that the package could be announced by President Donald Trump as early as today. The announcement is close to what has been speculated about the package in recent weeks. Keys will be how it is accepted or rejected by both biofuel proponents and the oil industry. An expected boost in ethanol use would begin to impact starting with the 2020-21 corn marketing year.
| Rural Advocate News | Friday October 4, 2019 |
US-China Trade Talks Ahead Trade talks between the U.S. and China are expected to resume next week in Washington as the thirteenth round of negotiations unfolds. It is unclear whether either side is willing to make the concessions necessary for a deal, observers note. Chinese officials and some media reports are still spinning a possible interim agreement that President Donald Trump has made clear he does not support as he favors a comprehensive, enforceable agreement. However, an interim or small-scale deal centered around China buying more U.S. agriculture products and the U.S. postponing planned tariff increases set for October 15 and December 15 is seen as still being possible if the two sides show some flexibility, according to some reports. Unknown is whether the U.S. will demand more in return for postponing the tariff increases.
| Rural Advocate News | Friday October 4, 2019 |
Friday Watch List Markets After this week's bearish news for U.S. manufacturing, there is increased talk of another rate cut in October. The U.S. Labor Department is set to disclose September non-farm payrolls and unemployment data at 7:30 a.m. CDT and traders will be watching. The U.S. trade deficit will also be posted, allowing USDA to release specific export data for August later in the morning. Weather Most crop areas will be dry Friday. A swath of rain is in store for the Texas Panhandle through Southern Plains. Conditions will be cool north and again very warm to hot southeast. Rain returns to the Northern Plains and western Midwest Saturday.
| Rural Advocate News | Thursday October 3, 2019 |
U.S. “Can’t Afford” Missing Out on USMCA The U.S. Chamber of Commerce continues its pressure for Congress to pass the U.S.-Mexico-Canada-Agreement. In a letter to all House of Representative members, the organization says the U.S. “cannot afford for enactment of USMCA to fall by the wayside.” The letter coins the term “No Rest Recess,” in calling on lawmakers to pass the agreement, following the current two-week recess. The Chamber says USMCA is critical to the economic future of the United States because it will preserve and strengthen U.S. trade ties, ensuring farmers, manufacturers, and small businesses continue to have access to the Canadian and Mexican markets. The future of the agreement rests with House Democrats and House Speaker Nancy Pelosi. Wednesday, Pelosi said the House is “making progress” on the agreement. Pelosi says the USMCA working group submitted its counter-proposal to the White House last week, adding the "the quiet you hear is progress," regarding negotiations with U.S. Trade Representative Robert Lighthizer. Pelosi has maintained that the House impeachment inquiry will not stall progress on the agreement. ************************************************************************************* CoBank: Volatility Continues to Roil Ag Markets Uncertainty over trade policy, weather and African swine fever dominated agricultural markets last quarter, causing greater volatility. A report just released by CoBank says issues in the market are affecting producers, supply chains and end users. Trade negotiation breakthroughs have largely remained elusive, and the U.S. agricultural sector is preparing for its second consecutive harvest under the shadow of hefty tariffs. A CoBank spokesperson responded that, "Global trade tensions are ratcheting up as world economic growth slows." Meanwhile, the historically late planting of the 2019 corn crop is creating extremely volatile cash corn prices. End users like ethanol producers and livestock feeders are biding old-crop corn supplies higher in anticipation of a short harvest this fall, with prices falling back to levels seen before spring planting. And, the report says the already volatile U.S. animal protein markets have gotten more volatile in the third quarter on nearly every front. The full Quarterly Rural Economic Review is available on cobank.com. ************************************************************************************* USDA Opens Comment Period on Organic Origin of Livestock Rule The Department of Agriculture this week reopened the public comment period for the National Organic Program Origin of Livestock proposed rule. First introduced in 2015, the proposal would add requirements about transitioning dairy animals to organic production. Current regulations provide two tracks for replacing dairy animals which are tied to how dairy farmers transition to organic production. The proposed action would eliminate the two-track system and require that upon transition, all existing and replacement dairy animals from which milk or milk products are intended to be sold, labeled, or represented as organic, must be managed organically from the last third of gestation. The National Organic Program received 1,580 public comments during the original comment period in 2015. USDA will consider all public comments in developing a final rule, including comments from 2015 and the new comment period. The comment period is open for 60 days and will close December 2, 2019. ************************************************************************************* Deere Announces Layoffs amid Demand Declines Deere & Company this week announced indefinite layoffs amid demand woes. Deere officials say more than 160 U.S. workers at agriculture machinery facilities in Illinois and Iowa will be laid off, after the company last week announced it would reduce production by 20 percent. Reuters says Deere, the world’s largest farm equipment maker, is reeling from the fallout of the U.S.-China trade war that has slowed purchases from farmers. The layoffs include roughly 50 workers at the Harvester Works facility in East Moline, Illinois, and more than 100 workers at the Davenport Works facility in Davenport, Iowa. Deere also lowered its income forecast to $3.2 billion in August, from the previous forecast in February set at $3.6 billion. In an August earnings report, Deere explained market concerns forced farmers to postpone major equipment purchases. The Association of Equipment Manufacturers in its monthly equipment sales report for August reported that overall sales numbers are flat to positive for the year, but the industry “remains cautious about the overall Ag economy.” ************************************************************************************* NPB Calls for Pork Industry to Better Meet the Needs of Hispanic Consumers A new report from the National Pork Board shows ways to capture market share in the biggest growth opportunity for U.S. pork producers. The report, “Time to Tango: Latinos are Pork’s Future,” reveals steps food retailers and packers can take to connect with influential consumers in the Hispanic community. According to the report, as Hispanic consumers become acculturated in the United States, the link between pork and culture weakens. Often, Hispanic consumers can't find the cuts they want for traditional dishes in mainstream stores, so they use other proteins or shop at specialty stores that offer the service to deliver the cuts they want. To maintain and increase loyalty among Hispanic consumers, the report outlines three key motivators retailers and packers must address, being accessibility, authenticity and health. The report is the first in a series the National Pork Board will provide in the months ahead to help the food industry better respond to Hispanic consumers' needs. ************************************************************************************* National Chicken Council Unveils New Sustainability Resources Through sustainability practices, U.S. chicken producers have significantly reduced the use of water, farmland, electricity, greenhouse gas emissions, and other valuable natural resources, according to the National Chicken Council. The organization in a new report says producing the same amount of chicken today as 1965 has 50 percent less impact on the environment. However, knowledge of the environmental impact of chicken among consumers is low. Only half of respondents to an NCC survey are moderately knowledgeable about chicken’s impact on the environment and the strides the industry has made. To help bridge the gap, answer questions and address misperceptions, NCC is unveiling several new resources related to environmental sustainability, including videos, infographics, farmer testimonials, FAQs, social squares, blog posts and more. The consumer resources are available online at www.chickencheck.in. The survey found the environmental impact of chicken is statistically as important as animal welfare in purchasing decisions by consumers. Half of the survey participants indicated a willingness to eat more chicken if they learned it is more sustainable than other protein sources.
| Rural Advocate News | Thursday October 3, 2019 |
Washington Insider: Growing Economic Angst New confusion erupted across economic circles this week as a prominent measure of U.S. manufacturing “unexpectedly fell deeper into contraction,” posting the weakest reading since the end of the last recession. The global economic slowdown and the U.S.-China trade war are weighing increasingly on a number of economies, Bloomberg said this week. The Institute for Supply Management’s factory index fell to 47.8 in September, the lowest since June 2009, the report said. It added that the “figure missed all estimates in a Bloomberg survey that had called for an increase from August’s 49.1.” The group’s production gauge slipped to a 10-year low while the employment measure also dropped to the lowest since January 2016. Bloomberg called that “a worrying sign before a jobs report Friday that’s forecast to show private payroll growth remains subdued.” The second straight PMI reading below 50 – the line separating expansion and contraction – extends the drop from a 14-year high just over a year earlier and raised concern about a recession even after two straight interest-rate cuts from the Federal Reserve. Recent manufacturing data “make you worried that this could spread from the manufacturing sector to the services sector,” Torsten Slok, chief economist at Deutsche Bank AG said. “When the employment report comes on Friday we will have an even better idea on whether this is just a manufacturing issue or whether this is something that not only continues to deteriorate but is also spreading.” Bloomberg reported that just three of 18 industries reported growth in September, the lowest total since April 2009. Contracting industries were led by apparel, leather and allied products; printing and related support activities; and wood products. The only expansions reported were in miscellaneous manufacturing; food, beverage and tobacco products; and chemical products. ISM’s measure of new orders, considered a leading indicator of downturns, edged up slightly to 47.3 from an August reading that matched the weakest of this expansion. However, the production index declined to 47.3, while the inventories gauge fell to 46.9, the lowest since late 2016. ISM’s trade gauges showed American producers struggling with headwinds from abroad as well as the effects of a resurgent dollar. The measure of export orders, a proxy for overseas demand, fell to 41, the lowest level since March 2009, while the imports index remained in contraction, the report noted. While manufacturing makes up just over a tenth of gross domestic product, its slower growth combined with cooler business investment and economic growth puts the longest-ever American expansion in a more precarious position. It also could have negative political impacts for the administration, Bloomberg said. Shortly after the report, the president renewed his attacks on the Fed and Chairman Jerome Powell, saying they “allowed the Dollar to get so strong,” hurting manufacturers. Fed officials “don’t have a clue” and are “pathetic,” he tweeted. The pullback in the employment gauge, to 46.3 from 47.4, comes amid economist projections that the main monthly Labor Department report Friday will show limited manufacturing payroll growth. Economists forecast a 3,000 gain in factory employment for a second month. Elsewhere, reports this week showed that China’s factory sector contracted for a fifth month in September, and that the euro area’s manufacturing slumped as German factories experienced their worst month since the depths of the financial crisis. In addition, the International Monetary Fund, already projecting a 3.2% growth pace this year that would be the slowest since the financial crisis, will release an updated estimate later this month as policy makers from across the world gather in Washington for the fund’s annual meeting. The manufacturing report was “quite weak, consistent with significant export-led weakening in manufacturing continuing,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics Ltd., said. But it may still be too early for alarm, as “so far at least, the less-export-oriented non-manufacturing parts of the economy have remained reasonably solid,” he wrote. However, Bloomberg sees another hit for manufacturing in the offing. The United Auto Workers union called its first national strike against General Motors Co. since 2007 midway through the month, halting production at the carmaker’s dozen assembly plants and 22 stamping, powertrain and parts factories. In addition, the work stoppage has spilled over to suppliers including American Axle & Manufacturing Holdings Inc., which has temporarily laid off staff. However, not all economic news was bad this week – a separate U.S. manufacturing purchasing managers’ index showed improvement on Tuesday. The gauge from IHS Markit rose to 51.1 from 50.3, with employment at the best reading since May and new orders up from the prior month. Analysts expected a level of 51, equal to the preliminary reading, the report said. So, we will see. Although there is broad agreement that the increasing global trade tensions are weighing significantly on economies around the world and that one or more major trade breakthroughs would be extremely welcome, but breakthroughs still seem unlikely given how deeply all sides are committed to current policies. These are continuing standoffs producers should watch closely as they continue, Washington Insider believes.
| Rural Advocate News | Thursday October 3, 2019 |
Perdue Signals Changes to H-2A Farmworker Visa Program USDA Secretary Sonny Perdue on Tuesday said the White House is planning to propose immigration legislation that could include major changes to the H-2A farmworker visa program. Speaking to reporters at the World Dairy Expo on Tuesday, Perdue suggested the legislation could make H-2A workers available year around, something pushed by the dairy sector, and also lower wage rates. “We are hoping to have an opportunity to address not only the seasonability issue but also the adverse wage rate,” Perdue said. “Many people that can get legal H-2A workers now are priced out of the provisions,” he added, referring to the required wage rates. However, odds remain low for any immigration legislation.
| Rural Advocate News | Thursday October 3, 2019 |
US To Move Quickly On Imposing Tariffs on EU Goods in Airbus WTO Case The WTO ruled that the U.S. could apply tariffs on up to $7.5 billion in goods from the European Union (EU) in response to the EU failing to change subsidies for Airbus that were found in violation of WTO rules. While the U.S. can request WTO permission to impose the duties at the next Dispute Settlement Body (DSB) meeting October 28, a senior U.S. Trade Representative (USTR) official said the U.S. was asking for a special meeting of the DSB Oct. 14 to formally adopt the ruling, clearing the way for the U.S. to impose the retaliatory tariffs Oct. 18. The U.S. will impose tariffs on the full $7.5 billion worth of goods authorized by the WTO decision, the WSJ said. The tariff rates, however, will not be 100%. Instead, the U.S. would set a 10% tariff on large commercial aircraft and 25% on agricultural and industrial goods, according to the official. The list of those goods to be targeted was released, but the final list will be set when published in the Federal Register.
| Rural Advocate News | Thursday October 3, 2019 |
Thursday Watch List Markets USDA's weekly export sales report, weekly jobless claims, and the U.S. Drought Monitor are all released at 7:30 a.m. CDT. U.S. factory orders are at 9 a.m., followed by natural gas inventory at 9:30 a.m. Weather and any news of trade with China remain perpetual topics of interest. Weather Thursday features light rain in the Great Lakes and light to moderate rain in portions of the Southern Plains and Texas Panhandle. Dry conditions are in store elsewhere. Temperatures will be cool north and central and very warm to hot southeast. Crop progress and harvest remain stalled in northern and western crop areas due to recent heavy rain and cool to cold conditions. South and southeast areas have better conditions for harvest, but are seeing the beginning of drought conditions.
| Rural Advocate News | Wednesday October 2, 2019 |
Farmer Pessimism Increasing over Current Conditions A monthly measure of farmer sentiment shows producers are more pessimistic about current conditions. The monthly Purdue/CME Group Ag Economy Barometer slipped to 121, down three points from August. However, the Index of Current Conditions, a sub-index of the barometer, dropped 22 points to a reading of 100. The barometer is based on a mid-month survey of 400 agricultural producers across the United States. A reading of 100 is considered neutral, with anything below negative, and anything above, positive. Despite the weak near-term outlook provided by farmers, they expressed some optimism about the future. The Index of Future Expectations rose six points compared to August. In the September survey, only one in five producers said they expect profitability to decline over the next year, compared to 41 percent back in May. Organizers say this could be a signal that farmers expect better times in 2020 compared to 2019, possibly because they are looking forward to a return to more normal growing conditions and crop production. ************************************************************************************* McConnell, Others, Optimistic on USMCA Senate Majority Leader Mitch McConnell hopes lawmakers can reach a resolution on the U.S.-Mexico-Canada Agreement soon. Speaking to CNBC this week, McConnell says “USMCA is something we can agree on,” referring to the Democrat-led House of Representatives and Republican-led Senate. President Donald Trump announced the three nations reached an agreement one year ago this week. Concerns regarding the impeachment effort in the House are building as some fear the effort may derail USMCA. However, House Speaker Nancy Pelosi says the USMCA working group will continue efforts to reach an agreement with the White House. However, labor and environment provisions remain as sticking points in the talks. Agriculture Secretary Sonny Perdue told dairy farmers Tuesday at World Dairy Expo he is optimistic a vote in the House will happen soon. Perdue says every provision in the agreement is an improvement, compared with the North American Free Trade Agreement, for U.S. agriculture. Mexico has already ratified the agreement and Canada is expected to do so following its federal elections later this month. ************************************************************************************* Agriculture Urges USDA to Quickly Establish FMD Vaccine Bank Agriculture groups are urging the Department of Agriculture to move quickly to establish a Foot-and-Mouth Disease vaccine bank. The National Pork Producers Council, National Milk Producers Federation, National Corn Growers Association and Iowa State University, made the joint call during a Tuesday press event. Recognizing the steps USDA has taken to establish the bank, the groups called for “expedient use of mandatory funding included in the 2018 farm bill to purchase the volume of vaccines required to effectively contain and eradicate an FMD outbreak.” The groups say USDA currently does not have access to enough vaccines to avoid “devastating economic consequences,” should an outbreak occur. FMD is an infectious viral disease that affects cloven-hooved animals, including cattle, pigs and sheep. Iowa State University research predicts an outbreak would result in $128 billion in losses for the beef and pork sectors, $44 billion and $25 billion, respectively, to corn and soybean farmers, and job losses of more than 1.5 million across U.S. agriculture over ten years. ************************************************************************************* Farm Bureau, Hemp Council, Seek Approvals for Hemp Protection Products The American Farm Bureau Federation and the National Industrial Hemp Council are seeking crop protection tools for hemp. The two groups have asked the Environmental Protection Agency to consider ten crop protection product applications approved for use on hemp. The groups made the request in rulemaking comments submitted to the agency. For hemp to reach its full potential, the groups say, "it is essential the EPA take a leadership role in the consistent review of applications for use on hemp, to facilitate a consistent and equal playing field across state jurisdictions.” Interest in hemp production is growing since authorized by the 2018 farm bill. However, farmers lack access to approved crop protection products. EPA requested comments regarding adding hemp to the labels of products registered under the Federal Insecticide, Fungicide, and Rodenticide Act. The groups also asked EPA to approve the products and additional applications to expand the range of approved products and provide their members with legal options for pest control beginning in 2020. ************************************************************************************* Organic Commodity Sales Double over Five Year Period Although the total value of U.S. agricultural sales remained relatively flat between 2012 and 2017, U.S. organic sales more than doubled to $7.3 billion. The Department of Agriculture’s Economic Research Service reports growth in the U.S. organic sector has accelerated since the early 2010s as retailers, food manufacturers, and livestock producers have increased demand for organic food and inputs. Agricultural sales averaged $400,600 for organic operations in 2017, more than double the average agricultural sales for all farms of $190,200. The organic share of U.S. agricultural sales doubled to two percent between 2012 and 2017, and was over six percent in some states. California was the top State in both organic and overall agricultural sales. Most other top organic states were in the Pacific Northwest, Upper Midwest and Northeast. Pennsylvania and North Carolina were among the states with the fastest growth, with organic sales up ten- and eight-fold, respectively. In contrast, Iowa ranked second in overall agricultural sales and twelfth in organic sales, reflecting the low adoption of organic systems for U.S. grain production. ************************************************************************************* Pennsylvania Farmer Named America’s Pig Farmer of the Year The National Pork Board Tuesday announced Chris Hoffman as the 2019-2020 Pig Farmer of the Year. Hoffman, a first-generation hog farmer from McAlisterville, Pennsylvania, received the highest combined score in third-party judging and online voting in the contest. The award recognizes pig farmers in the U.S. that exemplify industry leadership, a demonstrated focus in raising pigs following the We Care ethical principles and a commitment to connecting consumers with the farmers who raise the pork they consume. National Pork Board President David Newman calls Hoffman a “strong advocate” for the pork industry. Hoffman was named America’s Pig Farmer of the Year after an on-farm audit of animal health, safety and management practices, a series of personal interviews and an online vote. Hoffman says of the achievement, “I want to meet with our nation’s leaders, including the president, and show them that we are an integral part of our food supply and the nation’s workforce.” Learn more about Hoffman and the America’s Pig Farmer of the Year Award at americaspigfarmer.com.
| Rural Advocate News | Wednesday October 2, 2019 |
Washington Insider: Red Meat and Health The New York Times and a number of other media publications are highlighting a new report this week on human nutrition that calls the scientific evidence “too weak to justify telling individuals to eat less beef and pork.” Critics are up in arms. For years, public health officials have urged reduced consumption of red meat and processed meats on the grounds that they are linked to heart disease, cancer and other ills. But on Monday an international collaboration of researchers produced a series of analyses concluding that the advice is not backed by good scientific evidence. “If there are health benefits from eating less beef and pork, they are small,” the researchers concluded. Indeed, the advantages are so faint that they can be discerned only when looking at very large populations, the studies said. “The certainty of evidence for these risk reductions was low to very low,” Bradley Johnston, an epidemiologist at Dalhousie University in Canada and leader of the group publishing the new research in the Annals of Internal Medicine told the press. These studies are among the largest such evaluations ever attempted and may influence future dietary recommendations. However, the Times — and several other publications — emphasized that the findings raise uncomfortable questions about current and future dietary advice and nutritional research and what sort of standards these efforts should be held to. The Times said that the reports have already “been met with fierce criticism by public health researchers,” and pointed out that the American Heart Association, the American Cancer Society, the Harvard T.H. Chan School of Public Health and other groups have savaged the findings and the journal that published them. The NYT says these “conclusions represent another in a series of jarring dietary reversals involving salt, fats, carbohydrates and more.” The Times also says that “a renewed appetite for red meat also runs counter to two other important trends: a growing awareness of the environmental degradation caused by livestock production and longstanding concern about the welfare of animals employed in industrial farming.” NYT notes that beef is not “just another foodstuff,” but is a symbol set firmly in the center of America’s dinner plate. Even so, as concerns about health effects have risen, consumption of beef has fallen steadily since the mid-1970s, especially among highly educated consumers. However, the average American still eats about 4 1/2 servings of red meat a week, according to the Centers for Disease Control and Prevention data. In three reviews, the group looked at large numbers of studies asking whether eating red meat or processed meats affected the risk of cardiovascular disease or cancer. In each study reviewed, the scientists concluded that the links between eating red meat and disease and death were small and the quality of the evidence was low to very low. That is not to say that those links don’t exist, but the health effects of red meat consumption are detectable only in the largest groups, the team concluded, and “an individual cannot conclude that he or she will be better off not eating red meat.” The study asserted that “if Americans were highly motivated by even modest health hazards, then it might be worth continuing to advise them to eat less red meat” — but it found that the “evidence even for this is weak,” and that “omnivores are attached to meat and are unwilling to change ...even when faced with potentially undesirable health effects.” Taken together, the analyses raise questions about the longstanding dietary guidelines urging people to eat less red meat, the Times said. The new studies were met with indignation by nutrition researchers who have long said that red meat and processed meats contribute to the risk of heart disease and cancer. So, the debate is rapidly turning to the value of nutritional research and health advice and whether it’s possible to ascertain the effects of just one component of the diet, the Times said. It called this “a time to “reconsider how nutritional research is done in the country.” It also questioned how effectively research results “really help to inform an individual’s decisions.” Despite flaws in the evidence, health officials still must give advice and offer guidelines, said Dr. Meir Stampfer, also of the Harvard T.H. Chan School of Public Health. He believes that the data favor of eating less meat and that, although imperfect, they indicate there are likely to be health benefits. One way to give advice would be to say “reduce your red meat intake,” Stampfer said, although he mused about how that would be interpreted, and how it could be better communicated. Perhaps there is no way to make policies that can be conveyed to the public and simultaneously communicate the breadth of scientific evidence concerning diet. Or maybe policymakers should try something more straightforward: “When you don’t have the highest-quality evidence, the correct conclusion is ‘maybe,’” one expert told the Times. So, we will see. There is little dispute that there are severe health problems linked to diets, as well as social concerns about climate change and animal welfare, among others. But what should be done to encourage better health and nutrition and how the government should be involved is far from clear and likely to be increasingly debated, fights producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday October 2, 2019 |
Groups Want Meeting With Commerce’s Ross Re: Argentina Biodiesel Duties The National Biodiesel Board and the American Soybean Association asked Commerce Secretary Wilbur Ross for a meeting before the agency finalizes a review that would end most countervailing duties on biodiesel from Argentina. “It remains unclear why Commerce is rushing to issue final results when recent developments in Argentina suggest a likely change in leadership and tax policy,” the groups said in a letter. The groups called on Ross to “protect” U.S. biodiesel from the trade practices that resulted in the initial duties, issued in 2018, saying “Argentina’s tax policies are likely to continue to change.” They argued that U.S. soybean growers “continue to find international markets unbalanced as a result of uncertainty over trade agreements and retaliatory trade practices,” the letter added. While U.S. farmers grapple with “reduced demand and lower prices as a result of trade disruptions to address unfair practices by China unrelated to soybean markets, it would be inconsistent and further damaging to relax measures addressing unfair practices by Argentina.”
| Rural Advocate News | Wednesday October 2, 2019 |
McConnell Notes GOP Need For Trade Deal With China Commenting during an interview with CNBC Monday, Senate Majority Leader Mitch McConnell, R-Ky., said “rural America really needs” a China trade deal soon. McConnell noted the trade war with China has been tough on American farmers. “As you know, my party is very deeply based in rural America and small-town America,” McConnell said. “So, I hope the president can get a good outcome here.” McConnell said he appreciates what Trump is trying to do, but said things need to get wrapped up soon. “I admire what he is trying to do, but I hope we can get a conclusion to this soon because rural America really needs it.” McConnell said.
| Rural Advocate News | Wednesday October 2, 2019 |
Wednesday Watch List Markets A report on U.S. private sector employment from ADP starts the day at 7:15 a.m. CDT, followed by weekly inventories from the U.S. Energy Department at 9:30 a.m. The latest weather forecasts are being watched for harvest conditions and winter wheat planting and any trade news ahead of the October 10 meeting with China will be noted. Weather Wednesday features showers and thunderstorms over the northern, central and southwestern Plains through the western and northern Midwest. The rain adds to flood issues and further delays harvest. Southern and southeastern crop areas will be dry. Temperatures will have a sharp contrast between cool north and very warm to hot south.
| Rural Advocate News | Tuesday October 1, 2019 |
USDA Releases September Grain Stocks Report The Grain Stocks Report Monday sent grain futures higher as estimates from the Department of Agriculture were lower than markets expected. Old crop corn stocks totaled 2.11 billion bushels, down one percent from September 1, 2018. USDA reports 753 million bushels are stored on farms, up 22 percent from a year earlier, but 331 million bushes below the last estimate by USDA. Meanwhile, old crop soybeans stored totaled 913 million bushels, up 108 percent from last year. Soybean stocks stored on farms totaled 265 million bushels, up 162 percent from a year ago. All wheat stored totaled 2.38 billion bushels, down slightly from a year ago. Barley stocks totaled 192 million bushels, up ten percent from September 2018. Oats stored totaled 61.2 million bushels, 18 percent below last year. Finally, old crop grain sorghum stored totaled 63.7 million bushels, up 83 percent from a year ago. Meanwhile, USDA announced it would resurvey producers for the Small Grains Summary, as many crops were not harvested at the time of survey earlier this year. ************************************************************************************* United Fresh Responds to Gillibrand Produce Price Inquiry A Democrat on the Senate Agriculture Committee is calling on the federal government to investigate fruit and vegetable prices received by farmers. Senator Kirsten Gillibrand wants the Department Agriculture to investigate if fruit and vegetable farmers across the country are receiving fair prices for their produce, While the prices of fruits and vegetables have increased for both consumers at the grocery store and for wholesale buyers. Gillibrand says the prices that farmers receive for these same products has not kept up with the increases, and even gone down in some cases. United Fresh Monday responded to the inquiry, saying, “Transparency in any supply chain is a good thing, and we always welcome USDA’s analysis of our markets.” However, the group representing the U.S. produce industry cautions that “It’s important for each sector in our supply chain not to lose sight of our goal to grow fresh produce consumption, while fighting with one another over whose share of a dwindling pie is bigger.” ************************************************************************************* Stabenow Seeks USDA Relocation Details Senator Debbie Stabenow wants the Trump Administration to explain its plans to fill jobs for Department of Agriculture agencies moving to the Kansas City metro area. Last week, Stabenow sent a letter to Agriculture Secretary Sonny Perdue seeking more information on how the move will delay operations at the Economic Research Service and National Institute for Food and Agriculture. Stabenow, the top Democrat on the Senate Agriculture Committee, points out that more than 75 percent of reassigned employees opted not to relocate, on top of already high vacancy rates, adding the relocation “has left these agencies with little ability to do their important work.” Stabenow says, “It is clear that the lack of capacity is affecting Farm Bill implementation.” Stabenow raised several questions about the impact of staffing shortages and requested a thorough explanation of how the department plans to fill its job capacity for both NIFA and ERS. Stabenow requested the information be delivered to her by October 11, 2019. ************************************************************************************* Iowa State Releases Entry Level Ag Salaries Report Iowa State University recently released its annual entry-level salary summary for jobs in agriculture. The report includes data from 19 universities collected by career services offices at participating universities from December 2018 and May 2019 undergraduates. The report found entry-level jobs in agricultural economics and business have average salaries of $49,300. Entry-level jobs in agriculture education and communication averaged $43,300. Agronomy and crop sciences salaries averaged $46,400, while animal and dairy science salaries averaged $38,200. The average salary for jobs in biological sciences was reported at $35,100. Environmental sciences, fisheries and forestry and wildlife biology jobs offer an average salary of $35,700. Meanwhile, food science and human nutrition jobs averaged $47,300. The average salary for horticulture is $37,800, and technical engineering and industrial technology salaries average $59,100. Additionally, data compiled by USA Today shows agriculture sector jobs consistently rank among sectors with the lowest unemployment rates. The unemployment rate for agricultural economics ranked at .75 percent, 1.4 percent in soil sciences, and 1.5 percent in animal sciences. ************************************************************************************* Boehringer-Ingelheim Developing World’s Largest Vaccine Production Facility Boehringer Ingelheim is developing a biotechnology production site for veterinary vaccines in Europe. A groundbreaking ceremony last month marked the start of construction on the site that may become the largest vaccine production facility in the world. The 200-million-euro investment will significantly increase production capacities for antigens and vaccines against highly contagious diseases, providing the means to fight animal epidemics that often have dramatic health and financial consequences, such as foot-and-mouth disease and bluetongue disease, according to the company. The high-security facility will begin operating in France during the third quarter of 2022. Its five floors will be home to 35 cell and virus culture tanks, a purification area, a decontamination station and a strategic active ingredient reserve. The antigen bank will enable the company to “quickly and efficiently respond” to government orders in case of an outbreak of foot-and-mouth disease or bluetongue disease. Boehringer Ingelheim is the second largest animal health business in the world. ************************************************************************************* McDonald’s Testing Plant-Based Burger in Canada McDonald's announced last week the fast-food restaurant chain is testing a new plant-based burger in Canada. The P.L.T., a plant, lettuce, tomato burger, launched Monday as part of a 12-week test in Canada. The P.L.T. is made with a Beyond Meat plant-based patty. A McDonald’s spokesperson says, “We've been working on our recipe and now we're ready to hear feedback from our customers." The plant-based burger is available in 28 restaurants in Southwestern Ontario. McDonald's says the test allows the company “to learn more about real-world implications of serving the P.L.T.,” including customer demand and impact on restaurant operations. Through the effort, McDonald’s joins other restaurant chains in testing or rolling out a plant-based alternative. In August, KFC announced a beyond fried chicken product test in Atlanta, Georgia. HelloFresh, a U.S.-based meal delivery service, added beyond meat products to its offerings in September. And, Burger King and Carl’s Jr. both have permanent beyond meat menu items available, launched earlier this year.
| Rural Advocate News | Tuesday October 1, 2019 |
Washington Insider: Wall Street Warns Against Betting on Trade Truce In a somewhat gloomy post, Bloomberg warned this week against optimism on a U.S.-China trade deal this month. It further notes that the “next round of U.S. tariff hikes on China is little more than two weeks away,” though equity and foreign-exchange markets aren’t signaling much obvious concern. Possible increased trade tension “may set things off to a rocky start in the fourth quarter, a period when thinning liquidity is perceived to increase the risk of volatility,” Bloomberg said. For their part, strategists at some of Wall Street’s biggest banks –including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. – "are warning against expectations of any truce in the upcoming round of U.S.-China trade talks.” “We have more conviction that, without a circuit breaker, escalation continues over the medium term, meaning any pause is fleeting,” Morgan Stanley strategists including Michael Zezas wrote in Monday’s note to clients. “Investors should price in all announced actions (i.e., tariffs on both Oct. 15 and Dec. 15) even if further delays or pauses are announced.” Amid news about administration deliberations on curbs on U.S. investments in Chinese companies that hit stocks Friday, S&P 500 futures and the yuan both rose in Asian trading Monday. “That’s after China confirmed that its top trade negotiator, Vice Premier Liu He, is still heading to the U.S. for negotiations after national holidays end Oct. 7,” Bloomberg said. Bloomberg also noted that the Morgan Stanley team highlighted that “rounds of top-negotiator talks lately have been followed by tariff escalation, not by an easing in tensions.” Indeed, President Donald Trump on Aug. 1 announced a new round of tariff hikes shortly after the principal U.S. negotiators returned from talks in Shanghai. And that triggered the worst month for global stocks since May – when investors were also handed an escalation in tariffs. In currencies, the yuan slid through 7 per dollar, for a time spooking investors across emerging markets. September saw both stocks and exchange rates settle, as the U.S. and China announced goodwill gestures that took tensions down somewhat. However, the next round of headlines may not be so cheery, the report said. “While trade talks so far have been noted as constructive and the delay of some tariffs has led to some market optimism, we do not expect the Trump administration to reach a deal assuming continued strong U.S. economic and financial conditions,” Cesar Rojas, an economist at Citigroup, wrote last week. Rojas flagged the fact that, in addition to the upcoming tariff hikes, the U.S. Treasury’s semiannual foreign-exchange report is due in October. The department already has labeled China as a currency manipulator, so the focus now is whether the Commerce Department has any related announcement on treating the exchange rate as amounting to a subsidy, clearing the way for countervailing duties, according to Rojas. One new element going into the upcoming negotiations is President Trump’s impeachment fight in the House of Representatives. JPMorgan analysts noted that those tensions could have a bearing: The president “may experience an epiphany that inclines him to accept a weak offer from mainland China to end the trade war,” John Normand, JPMorgan’s head of cross-asset strategy, wrote on Friday. “But the adverse scenario is also credible: realizing President Trump’s vulnerability, China may slow-walk negotiations and even court another tariff hike, on the expectation that another year of mutual stress might raise the odds that Trump loses the 2020 elections.” JPMorgan’s base case is for talks to drag into next year. And the bank sees the yuan sliding by year-end to 7.35 per dollar, the weakest since 2007. Bank of America Merrill Lynch is even more bearish on China’s currency, seeing it tumbling to 7.50. “Cautious optimism is building that a narrow deal can be achieved” in the upcoming talks, Claudio Piron, a Bank of America strategist in Singapore, wrote recently. But even if there is a truce, the yuan may still slide, he argued--with China likely to ease monetary policy and try to offset existing tariffs through currency depreciation. Goldman isn’t quite so bearish on the yuan, keeping its near-term target at 7.20, compared with 7.1375 in Shanghai trading Monday. In addition, Goldman’s economists offer some sobering broader context for major American trade disputes over history. “In most instances, tariffs remained in place for several years, with a median duration of three-to-four years in our sample of major postwar disputes,” analysts including Alec Phillips wrote last Friday. “The more complicated conflicts saw periodic detentes that in some cases remain unresolved years or decades later.” So, we will see. Clearly, uncertainty over many economic, financial and trade policy issues continues to grow, as well as the weather, the national political situation and trade policy, among others. As a result, producers are well advised to watch closely, including especially the national fights over trade policy as the pre-election runup continues, Washington Insider believes.
| Rural Advocate News | Tuesday October 1, 2019 |
Host of State Corn Grower Groups Urge Trump on Biofuels The granting of 31 small refinery exemptions (SREs) for the 2018 compliance year are negatively impacting U.S. corn farmers, according to leaders of corn grower associations from 23 states in a letter to President Donald Trump. “The 31 new Renewable Fuel Standard (RFS) waivers to big oil companies, recently approved by the Environmental Protection Agency (EPA) and bringing total waivers issued under your Administration to 85, could not have come at a worse time for agriculture,” the presidents wrote. “Ethanol plants in several states, including Iowa, Ohio, Wisconsin, Michigan, Indiana, Minnesota and Mississippi have closed or idled. These closures have cost 2,700 rural jobs and impacted demand for more than 300 million bushels of corn. Corn farmers are beginning harvest and continuing to lose markets to deliver their corn. Frustration in the countryside is growing.” The officials said they are not “asking for a special deal,” but rather they want “EPA to uphold the law.” While thanking Trump for pushing ahead with year-round sales of E15, the officials said, “but EPA’s current use of waivers undermines growth potential for higher blends of ethanol, reduces demand, lowers the value of our crop, and puts the outlook for the rural economy in jeopardy.”
| Rural Advocate News | Tuesday October 1, 2019 |
U.S. Cleared to Hit EU With Retaliatory Tariffs Over Airbus The World Trade Organization (WTO) is expected to allow the U.S. to hit European imports with $7.5 billion in tariffs over a 15-year old aircraft subsidy dispute, according to a report from IEG Policy. The tariffs on European Union (EU) goods are expected to include dairy, fruit, meat, whiskey and wine exports. The U.S. requested a much larger amount, but the WTO typically trims those requested levels. Meanwhile, the EU is expected to get a green light from the WTO to hit U.S. goods with tariffs in response to a WTO ruling against subsidies to Boeing. But, the U.S. will be able to impose its tariffs first as the case against Airbus is eight months ahead of the EU’s case on Boeing.
| Rural Advocate News | Tuesday October 1, 2019 |
Tuesday Watch List Markets Fresh off of Monday's Grain Stocks and Crop Progress reports, market attention will turn back to weather, trying to figure out how these immature crops will fare through wet harvest conditions. An index of U.S. manufacturing is scheduled for 9 a.m. CDT and U.S. soybean crush statistics will be updated at 2 p.m. China celebrates its 70th anniversary with a one-week holiday. Weather Moderate to heavy rain is in store for the southwestern and central Plains through the western and northern Midwest Tuesday. Flash flooding is likely, along with hail and high winds. Harvest disruption will be widespread. Meanwhile, the northwestern Plains will be cool, while very hot and dry conditions remain in place from the Ohio Valley through the Delta and Southeast.
| Rural Advocate News | Monday September 30, 2019 |
McConnell Tells Democrats “Time to Act on USMCA” Much of Washington, D.C., is consumed with questions about Ukraine and the impeachment inquiry. However, Senate Majority Leader Mitch McConnell publicly scolded Democrats’ handling of the U.S.-Mexico-Canada Trade Agreement. Politico says McConnell wants House Democrats to pass the North American trade agreement, noting that “the time for excuses is over.” Speaking on the Senate floor, McConnell said Democrats continued objections to the new pact are nothing more than “heel-dragging.” He says the delay is because of the House impeachment inquiry and related investigations. “Canada, Mexico, and millions of Americans are waiting for Speaker Pelosi to remember that serving the public interest requires more than just picking fights with the President,” McConnell says. His comments come after House Democrats pledged last week that the newly-launched impeachment inquiry will not affect their ability to work with the administration to negotiate changes in four key areas of the agreement with our North American trade partners. Those areas include labor, the environment, access to medicines, and enforcement. ********************************************************************************************** House Democrat says USMCA Vote Depends on Mexican Budget Texas Democrat Henry Cuellar (KWAY-yar) says he expects Congress to vote on the U.S.-Mexico-Canada Trade Agreement in either November or December. The Hagstrom Report says that House Democrats consider that vote to be contingent on Mexico agreeing to spend more money on enforcing labor provisions in the agreement. Cuellar is one of the more vocal Democrats advocating for passing USMCA. At a recent speaking engagement, Cuellar says he’s spoken with both House Leader Nancy Pelosi and the White House about the prospects for USMCA since Pelosi announced a formal impeachment inquiry on President Donald Trump. He expects both the impeachment and USMCA approval will be kept on separate tracks. Cuellar, who has cautiously endorsed Pelosi’s impeachment inquiry, says, “The last couple of days have kind of complicated things, but we can walk and chew gum at the same time.” What House Democrats want is for Mexico to budget enough money to enforce the labor provisions in the agreement. Cuellar says U.S. Trade Representative Robert Lighthizer with doing a “very good job” on labor issues. However, the Mexican enforcement budget is still the key to getting House support. ********************************************************************************************** China’s Ag Buying Surges Ahead of Next Round of Talks With U.S. Late last week, China said it’s already bought a considerable number of U.S. soybeans and pork as it prepares for the next round of trade talks with Washington, D.C. The Chinese Ministry of Commerce says both countries are in “close communication” ahead of the next round of talks. A ministry spokesman says as China has ramped up its purchases, the tariffs on those recent orders will be exempted. The Ministry says that “China’s stance has always been consistent and clear, hoping the U.S. will meet China halfway.” China purchased $5.9 billion in U.S. farm products in 2018. Tensions between the two largest economies in the world seem to have eased ahead of trade talks next month. President Trump granted tariff exemptions to many Chinese products, while China says it will exempt U.S. agricultural products and other goods from additional tariffs. Trump said last week that a U.S. and China trade deal could possibly arrive sooner than expected. He made those comments shortly after House Democrats announced an impeachment inquiry. ********************************************************************************************** Producers to Get “Top-Up” Payments The U.S. Department of Agriculture says producers who are currently participating in the federal crop insurance program are in line for some extra help. Farmers who had a payable prevented planting indemnity related to flooding, excess moisture, or causes other than drought will automatically receive a “top-up” payment. Producers will get that payment from their Approved Insurance Providers starting in mid-October. Producers with Yield Protection and Revenue Protection with Harvest Price Option will get a 10 percent top-up payment. Producers with Revenue Protection will receive a 15 percent top-up. They don’t need to sign up to get the payments as all producers with a 2019 prevented planting indemnity will receive the top-up. “It was a challenging season for many of our farmers,” says USDA Undersecretary for Farm Production and Conservation Bill Northey. “We are doing everything we can to ensure that producers get the help they need.” The crop insurance industry will deliver the payments as part of the Additional Supplemental Appropriations for Disaster Relief Act of 2019. After the initial payment, additional payments will be made in the middle of each month as more prevented planting claims get processed. ********************************************************************************************** NCBA Exposes OCM/HSUS Smear Campaign The National Cattlemen’s Beef Association says the Organization for Competitive Markets is using half-truths and smear tactics to pit beef producers against each other. They say it’s clear that the Humane Society of the U.S. has taught the OCM staff some tricks to help them tear apart the beef industry from the inside. It’s no coincidence that they’ve chosen to do so at a time when the industry is struggling with market-related challenges and producer unrest to fire their latest shots. The NCBA points out that both groups would like farmers to think that the industry is weak when in reality the demand for beef is strong. That demand has been climbing for many years in both the United States and overseas. Much of that increasing strength comes from programs that are funded by the Beef Checkoff. HSUS knows this and opposes it because they’re against the consumption of animal products. The NCBA says that’s why they’ve come together with OCM to organize and fund the ongoing smear campaign. Discrediting the beef checkoff and the work done by contracting organizations allows the Humane Society, the OCM, and R-CALF to build up their membership numbers. The NCBA says division within the beef industry serves no one but the industry’s adversaries. ********************************************************************************************* RFA Corrects EPA on Ethanol Demand The Renewable Fuels Association sent a letter to the Environmental Protection Agency regarding its testimony before the House Committee on Science, Space, and Technology. The letter had a lot to say about the real impacts of small refinery exemptions under the Renewable Fuels Standard. The letter followed EPA assertion that there is “zero evidence” that the waivers are negatively impacting ethanol producers. “In light of our August letter and the continued evidence of deterioration in the ethanol market, we were disappointed to hear you make similar claims about the impact of the small refinery exemptions,” says RFA CEO Geoff Cooper to EPA Administrator Andrew Wheeler. “Several statements made during the hearing about ethanol supply and demand are inconsistent with government data and market intelligence. I write today to challenge your statements on the impact of exemptions and provide additional information.” Wheeler told the committee that ethanol production and consumption is “on the rise.” Data from the Department of Energy and even the EPA itself tell a different story.
| Rural Advocate News | Monday September 30, 2019 |
Washington Insider: President Signs Stopgap Spending Measure The Hill and other media are reporting this week that the president on Friday signed a stopgap funding measure to keep the government running until Nov. 21, an eight-week extension into the new fiscal year that begins this week. The measure was agreed in an effort to avoid another government shutdown this fall. The legislation, which passed in the House last week and the Senate on Thursday, keeps 2019 funding levels in place while Democrats and Republicans look to hammer out a broader spending deal. Controversy over the president’s proposed border wall has stalled most new spending bills, The Hill noted. While the House passed 10 of the 12 annual measures early in the summer, the Senate, where bipartisan support is required to pass legislation, has not been able to complete a single appropriations bill for the 2020 fiscal year. In recent weeks, the Senate Appropriations Committee succeeded in marking up 10 bills, but several more bills, such as defense and homeland security, received only Republican support. Democrats have continued to oppose the provision of an additional $5 billion for the wall at the U.S.-Mexico border, and insist that other bills should block the administration from using emergency powers to reprogram funds. So far, the administration has reprogrammed upwards of $6 billion from defense, military construction funds and a Treasury asset fund for the proposed wall. In an effort to resolve the current standoff, the president was scheduled to meet with Senate Appropriations Committee Chairman Richard Shelby, R-Ala., about a way forward for the legislation. However, Shelby warned on Thursday that without a bipartisan deal on border issues, Congress might be forced to rely on stopgap measures—that is, continuing resolutions – for the entire 2020 fiscal year. That would prevent agencies from embarking on new projects and deny them an already agreed-upon, multi-billion dollar boost in spending levels. The stopgap measure signed last week also extended major health programs, flood insurance, authorization for the Export-Import Bank and disaster funds. In the meantime, Bloomberg is reporting that China’s foreign minister hit back at President Donald Trump’s trade policies at the UN on Friday, warning that protectionism could plunge the world into a recession just as negotiators from both countries prepare to meet in Washington next month. Foreign Minister Wang Yi, speaking from the General Assembly rostrum days after President Trump used the same setting to criticize China’s trade practices, said that “tariffs and provocations of trade disputes” are upsetting the global industrial and supply chain and risk undermining the “global economic and trade order.” “China will not ever be cowed by threats, or subdued by pressure,” Wang said. “Erecting walls will not resolve global challenges, and blaming others for one’s own problems does not work.” President Trump devoted much of his General Assembly speech on Tuesday to China’s trade practices, accusing Beijing of failing to adopt promised reforms and embracing an economic model dependent on massive market barriers, heavy state subsidies, forced technology transfers and the theft of intellectual property. He defended his imposition of tariffs, saying he wouldn’t accept a “bad deal.” As the trade conflict unfolded, China targeted American farmers – an important political constituency for the administration – in retaliation for U.S. tariffs by cutting purchases of soybeans and other commodities. The administration “has responded with a bailout for farmers that, so far, totals about $28 billion,” Bloomberg said. “Regarding economic and trade frictions and differences, China is committed to resolve them in a calm, rational and cooperative manner, and is willing to demonstrate utmost patience and goodwill,” Wang said. “Should the other side act in bad faith, or show no respect for equal status or rules in negotiations, we will have to make necessary responses to safeguard our legitimate rights and interests.” Trade talks are to resume in Washington early in October and China’s Vice Premier Liu He is expected to lead his country’s delegation. So, we will see. The difficulty in completing work on the next U.S. budget along with Chinese saber rattling are both regarded as significant economic danger signs for the coming months, along with the growing political tensions in Washington. These are among the many ongoing and expected debates that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Monday September 30, 2019 |
Pelosi, McConnell Comment On USMCA Situation The top leaders of the House and Senate both made remarks Thursday relative to the U.S.-Mexico-Canada Agreement (USMCA). “Let me just say … we are moving ahead on the U.S.-Mexico-Canada-Agreement (USMCA),” House Speaker Nancy Pelosi, D-Calif., told reporters as she concluded a news conference. “Again, we are hoping to be on a continued path to yes,” Pelosi added. Other House Democrats said the newly launched impeachment inquiry will not affect their work with the Trump administration to negotiate changes to the deal in four core areas: labor, environment, access to medicines and enforcement. Senate Majority Leader Mitch McConnell, R-Ky., told Democrats that “the time for excuses is over.” In a speech on the Senate floor, McConnell said Democrats’ continued objections amount to little more than “heel-dragging,” and suggested a chief reason for the pact’s delay is the House’s impeachment inquiry and related investigations. “Canada, Mexico and millions of Americans are waiting for Speaker Pelosi to remember that serving the public interest requires more than just picking fights with the president,” McConnell said. “It actually entails addressing the people’s business.” Meanwhile, the House Democrats USMCA working group will meet with U.S. Trade Representative Robert Lighthizer today. The group will reportedly tell Lighthizer its responses to proposals USTR sent over earlier this month.
| Rural Advocate News | Monday September 30, 2019 |
Farmers To Automatically Get Bump Up In Prevent Plant Payment Farmers with crop insurance who claimed prevent plant for 2019 will automatically get a “top-up” payment via the disaster aid package approved this year by Congress. Payments will be made by Approved Insurance Providers (AIPs). The announcement from USDA clears up a question of whether the payments would be made via crop insurance or would come from the Farm Service Agency (FSA). Producers with Yield Protection and Revenue Protection with Harvest Price Exclusion will receive a 10% top-up payment while those with Revenue Protection policies will get a 15% payment. Initial payments will be made in mid-October with additional payments the middle of each month after that as more prevent plant claims are processed. There were crop insurance indemnity claims on an estimated 19.6 million acres this year. The top-up payments are separate from disaster payments via the Wildfires and Hurricanes Indemnity Program Plus (WHIP+).
| Rural Advocate News | Monday September 30, 2019 |
Monday Watch List Markets After checking new weather forecasts for the week and any news over the weekend, the market will get ready for several reports on Monday's docket. USDA's weekly export inspections is set for 10 a.m., followed by the September 1 Grain Stocks report and Small Grains Summary at 11 a.m. Crop Progress is due out at 3 p.m. and will be watched for row crop maturity and spring wheat harvest progress. Weather Moderate to heavy rain is in store for the far Northern Plains and northern Midwest Monday. The heavy precipitation, including snow, will also be noted in the Canadian Prairies. Harvest disruption and crop damage is likely in these areas. We'll also see light rain in southern Texas. Other areas will be drier ahead of a new round of rain in the Plains and Midwest Monday night and Tuesday. Delta and Southeast areas will again be hot and dry.
| Rural Advocate News | Friday September 27, 2019 |
Trump: Impeachment effort Hindering USMCA Would "Be a Shame" President Donald Trump told reporters this week it "would be a shame" if The U.S.-Mexico-Canada Agreement doesn't pass through Congress. Speaking during a White House Press Conference, Trump said the fate of USCMA is "going to be a very interesting question." The White House earlier indicated this week that the impeachment effort by House Democrats "destroyed any chances of legislative progress." House Agriculture Committee Chair Collin Peterson warned the effort will be a "failed process," and worried about the chances of USMCA getting through Congress. However, some now say the impeachment effort may give the Trump administration more reason to work with Democrats on the agreement. Further, U.S. Trade Representative Robert Lighthizer indicated earlier this week he was confident the trade agreement could rise above the toxic political climate. Lighthizer told Bloomberg News, “On the merits, this is demonstrably good for the people of the United States. And I think, for that reason, it will pass.” Lighthizer was scheduled to meet with House Democrats Friday. ************************************************************************************* Tester Introduces Mental Health Bill for Farmers A bill introduced by Senator John Tester seeks to bring mental health resources and awareness to rural communities. The Montana Democrat this week introduced the Seeding Rural Resilience Act to help reduce stress and suicides in rural America. While Tester says, “there is no silver bullet,” he says the bill “provides better tools and resources for folks in rural communities to manage and reduce stress." Data from the Center for Disease Control shows the suicide rate is 45 percent higher in rural America than in urban areas. Tester says Americans in rural communities deal with substantial isolation, significant travel times for basic health services, lack of broadband access that would enable tele-health services, and stigmas against receiving counseling. The bill would provide Department of Agriculture employees voluntary stress management training, and for a partnership with Department of Health to create a $3 million public awareness campaign, and direct the Agriculture Secretary to work with stakeholders to identify the best practices for responding to farm and ranch mental stress. ************************************************************************************* House Passes Bill Allowing Cannabis Industry Access to Banks The House of Representative this week passed a bill allowing banks to work with the cannabis industry. Known as the SAFE Banking Act, the Secure and Fair Enforcement Act of 2019 passed 321 to 103. However, with a mostly party-line vote in the Democrat-led chamber, the legislation faces an uncertain future in the Republican-led Senate. Sponsored by Representative Ed Perlmutter, (pearl-mutter) a Colorado Democrat, the bill allows marijuana-related businesses in states with some form of legalized marijuana and strict regulatory structures to access the banking system. Perlmutter notes that 47 states, four U.S. territories, and the District of Columbia, representing 97.7 percent of the U.S. population, have legalized some form of recreational or medical marijuana, including CBD oil. The bill was co-authored by Representatives Denny Heck, a Washington Democrat, and Steve Stivers, an Ohio Republican. Mike Crapo (cray-poh), a Republican Senator from Idaho who serves as the Senate Banking Chairman, told reporters he wants the Senate to vote on the measure in the coming month. However, Crapo says he does not support the bill. ************************************************************************************* Kind Introduces CURD Act to Protect Quality of Cheese A bipartisan bill introduced by a dairy country lawmaker would create a formal definition of “natural cheese” to ensure consumers are fully informed when purchasing cheese. Representative Ron Kind, a Democrat from Wisconsin, this week introduced the bipartisan Codifying Useful Regulatory Definitions Act, called the CURD Act. Kind says the bill “will give customers the information they need to continue buying the quality Wisconsin cheese their families have used for generations.” The Wisconsin Cheese Makers Association says the legislation “preserves our industry’s ability to use this term to describe cheese made naturally with fresh milk and dairy ingredients.” Cheesemakers have been using this term for decades to differentiate “Natural Cheese” from “Pasteurized Process Cheese” in the grocery store. The term “natural cheese” is historically used to identify cheeses made directly from milk and distinguish those products from pasteurized process cheeses. It describes cheese that is made from milk to which salt, enzymes, and flavorings can be added, and is the result of the fermentation of milk by adding starter culture. ************************************************************************************* Grocery Manufacturers Association to Rebrand in 2020 The Grocery Manufacturers Association announced this week it will become the Consumer Brands Association, effective January 2020. The new identity is part of a sweeping overhaul of the 110-year old trade organization, led by President and CEO Geoff Freeman and the GMA board of directors. Leaders of the organization say GMA’s new advocacy agenda represents the broader interests of a modern consumer packaged goods company by focusing on four core pillars, enhancing packaging sustainability, championing smart regulation, creating frictionless supply chains and building trust, while also advancing a narrative about the industry’s social and economic impact. The organization faced controversy during the GMO labeling debate, along with labeling issues regarding added sugars. In 2017, several high-profile member-companies left the organization because of those issues. The trade organization has already begun to advance its strategic priorities. This summer, it released the industry’s first-ever economic study, which found the industry supports more than 20 million American jobs and contributes $2 trillion to the country’s GDP. ************************************************************************************* Farm Bureau Extends Rural Ag Innovation Challenge Application Deadline Rural entrepreneurs have until mid-October to apply for the Farm Bureau Ag Innovation Challenge. The American Farm Bureau Federation, in partnership with Farm Credit, will accept applications for the 2020 Farm Bureau Ag Innovation Challenge through October 14. In its sixth year, the Farm Bureau Ag Innovation Challenge is a national business competition for U.S. food and agriculture startups. Entrepreneurs will compete for $145,000 in startup funds. The funds for the challenge are provided by sponsors Farm Credit, John Deere, Bayer Crop Science, Farm Bureau Bank and Country Financial. AFBF President Zippy Duvall says, "It takes faith, courage and creativity to start a business," adding that the funds in the challenge can help entrepreneurs "take their businesses to the next level." Ten semi-finalist teams will be announced on November 22 and awarded $10,000 each. The ten teams will at the 2020 AFBF Annual Convention in Austin, Texas, in January. Competitors can apply online at www.fb.org.
| Rural Advocate News | Friday September 27, 2019 |
Washington Insider: US, Japan Trade Deal Signed Despite earlier concerns regarding possible U.S. tariffs on Japan’s auto exports to the U.S., Prime Minister Shinzo Abe and U.S. President Donald Trump signed a trade agreement this week that removed that threat for now, Bloomberg — and others — are reporting. Akio Toyoda, president of the Japan Automobile Manufacturers Association and the chief executive officer of Toyota Motor Corp., told Trade Minister Isshu Sugawara that he welcomed the pact. However, he was reported as noting that the industry “faces extremely difficult challenges,” citing a stronger yen, an impending hike in sales tax and other uncertainties and hopes for continued support for the sector. In the months leading up to the deal, Toyoda had pushed for the interests of Japan’s $260 billion automobile industry, using unusually sharp language to rebuff earlier U.S. threats of auto tariffs. Under the new agreement, Japan will eliminate or reduce import duties on $7.2 billion of U.S. food and agricultural products, while the U.S. will retain its existing 2.5% tariff on cars and light trucks. “The pact maintains and strengthens the free and fair trade environment in the auto industry between Japan and U.S., and we welcome that,” Toyoda said. “The discussion toward avoiding further tariffs is very beneficial for stakeholders in both countries.” During the negotiations, the association had stressed the fact that Japan’s auto industry has 24 factories, 45 research-and-development or design centers and 39 distribution centers in 28 U.S. states. Japanese carmakers have invested more than $50 billion in manufacturing facilities and provide more than 93,000 direct American jobs, the group said. Japan has faced sharp criticism from the administration for the fact that it has accounted for more than a quarter of the $208.8 billion deficit the U.S. ran with the rest of the world in the trading of passenger vehicles and auto parts last year, Bloomberg said. Bloomberg and others also noted that the agreement is “limited” and covered what U.S. trade officials called the “first stage” and “early achievements.” However, President Trump told reporters that he expects “in the fairly near future” that the U.S. will have “final comprehensive deals signed with Japan.” Bloomberg repeats that the main “sticking point” in the more than year-long talks was Abe’s need for a guarantee that the U.S. will not impose “national security tariffs” on imported Japanese automobiles and auto parts. “Trump doesn’t intend to levy the duties on Japan for the time being,” U.S. Trade Representative Robert Lighthizer said. Bloomberg cited U.S. election year politics as important in the agreement reached, and called the U.S. president “eager to make a deal with Japan to appease U.S. farmers who have been largely shut out of the Chinese market as a result of his trade war with Beijing.” American agricultural producers, also reeling from bad weather and low commodity prices, are a core component of the president’s political base. The president said the agreement, which also covers a $40 billion digital trade agreement, would help reduce a chronic U.S. trade deficit. The countries’ goal is for the accord to go into force on Jan. 1, 2020. Abe said he was pleased with the deal and said that it will help “bring benefit to everyone in Japan as well in the United States, namely consumers, producers, as well as workers.” “I confirmed clearly with President Trump that the content of the agreement is intended to mean that extra tariffs will not be imposed on Japan’s cars or car parts and President Trump agreed on that,” Abe told reporters. Foreign Minister Toshimitsu Motegi, Tokyo’s point man in the trade talks, said he had also confirmed with Lighthizer that no quotas or voluntary restraints would be imposed on Japan’s auto sector. In the longer term, the U.S. agreed to remove existing tariffs on the sector, according to a statement issued by the Japanese government, but no time line was given for this. Bloomberg noted that the new pact won’t lower the barriers protecting Japan’s rice farmers — a powerful group supporting Abe’s ruling Liberal Democratic Party. This could help the prime minster smooth the deal’s course through parliament, where it must be ratified before coming into effect. However, Senator Ron Weyden, D-Ore., the ranking member on the Finance Committee, criticized the narrow scope of the agreement. “The agriculture deal is not a comprehensive one and there is much more to do to level the playing field in Japan for American workers, businesses, farmers and ranchers.” Senator Chuck Grassley, R-Iowa, who chairs the Finance Committee, told reporters that he’s happy with the deal, but added, “I think the negotiations ought to be more comprehensive than just for agriculture.” The President noted that this limited deal would not require a vote by Congress. So, the new pact is good news for those producers whose products are included, but reflects no immediate change for others. However, it would seem to reflect a reduction in emphasis the administration is placing on the use of tariffs to improve the U.S. trade balance, a metric many analysts regard as “unreliable” in evaluations of important U.S. overseas markets, Washington Insider believes.
| Rural Advocate News | Friday September 27, 2019 |
RFA Rebukes EPA’s Wheeler on View Refiner Exemptions Don’t Cut Biofuel Demand Congressional testimony by EPA Administrator Andrew Wheeler September 19 before a House committee have prompted the Renewable Fuels Association (RFA) to again criticize the EPA leader. Wheeler testified to the House Science, Space & Technology Committee that small refinery exemptions (SREs) have had no impact on U.S. biofuel demand. “Several statements made during the hearing about ethanol supply and demand are inconsistent with government data and market intelligence,” RFA President and CEO Geoff Cooper said in a September 25 letter to Wheeler. Cooper cited U.S. Energy Information Administration (EIA) data showing U.S. ethanol consumption fell from 14.485 billion gallons in 2017 to 14.382 billion gallons in 2018 – the first year-over-year decline in over 20 years. The drop in ethanol demand came despite gasoline demand remaining essentially steady from 2017 to 2018. Plus, the latest EIA projections peg U.S. ethanol consumption at just 14.38 billion gallons for 2019, down from their forecast of 14.82 billion gallons that was made in January 2018 – before 2016 and 2017 SREs had been issued by EPA. In their updated outlook for ethanol consumption in 2019, EIA said that outlook “…assumes growth in higher-level ethanol blends is limited in the near-term by recent Small Refinery Exemptions that reduced volumes of renewable fuels required under the RFS.”
| Rural Advocate News | Friday September 27, 2019 |
China Notes Soy, Pork Buys from US Are Without Duties Details are still under discussion between the U.S. and China on high-level trade talks set for early October, according to China’s Commerce Ministry. China is hopeful of making progress at the talks, Commerce Ministry spokesman Gao Feng said, pointing out that Chinese firms have made significant buys of U.S. pork and soybeans, purchases that are exempt from tariffs. "We hope both sides can work together and take tangible actions to create favorable conditions for such cooperation," Gao said. He also reiterated a China view that they hope the U.S. will meet China half-way and find a win-win solution in the trade dispute. China could buy even more U.S. farm products, according to Chinese Foreign Minister Wang Yi in New York. Asked by Reuters about the potential for more purchases, he said China would be willing to do so on products “needed by the Chinese market.”
| Rural Advocate News | Friday September 27, 2019 |
Friday Watch List Markets Weather will be of interest through the weekend with winter storms in Alberta and rain expected across the Northern Plains and central Midwest. Reports of U.S. durable goods orders and personal incomes are due out at 7:30 a.m. CDT, followed by a consumer sentiment index at 9 a.m. USDA's quarterly hogs and pigs report is set for 2 p.m. CDT with a 4% increase expected for all hogs. Weather Moderate to heavy rain is in store for the central Midwest Friday, disrupting harvest and threatening a new round of flooding. We'll also see light rain in the northern Plains ahead of a stormy weekend with rain and snow. Southern and southeastern areas will be dry and very warm to hot. Drought is building in the far Southern Plains, Delta, southeastern Midwest, and the Southeast.
| Rural Advocate News | Thursday September 26, 2019 |
U.S. and Japan Sign Trade Agreement The U.S. and Japan have signed a trade agreement. President Donald Trump says the two sides have agreed to the first phase of the deal. The agreement is not finished enough to be signed, but the two sides signed a statement explaining the agreement is to be signed. Agriculture Secretary Sonny Perdue called the agreement a “big win” for agriculture, as the deal increases market access for farmers and ranchers to Japan. Once implemented, the agreement grants the U.S. the same level of agricultural tariffs for other nations included in the Comprehensive Agreement for Trans-Pacific Partnership. USDA says Japan has committed to provide substantial market access to U.S. food and agricultural products by eliminating tariffs, enacting meaningful tariff reductions, or allowing a specific quantity of imports at a low duty. The agreement is expected to be approved by the Japanese Parliament later this fall. The effective date could be January 1, 2020. Japan is the third global market for U.S. agricultural exports with nearly $13 billion in exports in 2018. ************************************************************************************* Farm Groups Welcome Japan Agreement Agriculture groups say the intent to sign a final agreement with Japan will increase market access for U.S. farmers. The U.S. Grains Council says the first phase of the agreement signed Wednesday show that the agreement would bring commodities the organization represents largely back in line with the Trans-Pacific Partnership Agreement. National Corn Growers Association President Lynn Chrisp says, “with many farmers struggling amid challenging times in agriculture, this is very welcome news.” The U.S. Meat Export Federation called the announcement "excellent news for U.S. farmers and ranchers,” noting Japan is the largest value destination for U.S. pork and beef exports, estimated at $3.7 billion last year. American Farm Bureau Federation President Zippy Duvall says the announcement is “a positive step for America’s farmers and ranchers.” Duvall says AFBF is “thankful” for the agreement, and urges “trade negotiators to achieve many more like it.” Duvall added, “The time for trade wars has come and gone,” saying farmers and ranchers “need to get back to doing what they do best,” feeding the world. ************************************************************************************ Impeachment Inquiry Could Dampen Chances of USMCA House Democrats seeking to impeach President Donald Trump spells trouble for the U.S.-Mexico-Canada agreement. White House officials claim the effort has “destroyed any chances of legislative progress.” Meanwhile, Iowa Republican Senator Chuck Grassley says if Democrats in the House use impeachment proceedings as a basis to not act on policy, the effort will halt progress on USMCA. Grassley says Congress “must step up and deliver” a finalized agreement for agriculture and other industries. House Agriculture Committee Chairman Collin Peterson, a Minnesota Democrat, says he believed the inquiry will be “a failed process.” Peterson worries the impeachment effort will further divide the country, “weakening our ability to act together on issues like passing USMCA.” Representative Richard Neal, a Democrat from Massachusetts who chairs the House USMCA working group, says he won’t let the impeachment process hinder progress on USCMA. However, Neal in a statement did say he “strongly backs” the call for formal impeachment by House Speaker Nancy Pelosi. ************************************************************************************* Livestock Producers Describe Trade Headwinds to Congress Livestock groups told the Senate Agriculture Committee they need certainty in trade. During a hearing Wednesday, groups including the National Cattlemen's Beef Association and the National Pork Producers Council urged lawmakers to approve the U.S.-Mexico-Canada Agreement quickly. NCBA President Jennifer Houston says the U.S. needs to pass USMCA to "send a message to the rest of the world that the United States is open for business." Agriculture groups focused on other trade needs, including finalizing negotiations with Japan and China. A pork industry representative from NPPC told lawmakers the U.S. is missing out "on an unprecedented sales opportunity." Punitive tariffs have cost U.S. producers $8 per animal, or $1 billion last year, according to the organization. Affordable pork is in short supply in China because African swine fever has ravaged the Chinese hog herd and significantly reduced the production of pork. NPPC says “we need to remove market access uncertainty and level the playing field in the world's largest pork-consuming nation.” ************************************************************************************* EPA Granted Waivers Against Energy Department Recommendations The Environmental Protection Agency granted some small refinery waivers against recommendations by the Department of Energy. Reuters obtained an August 9 memo that states the EPA granted “full exemptions for those 2018 small refinery petitions where the Department of Energy recommended 50 percent relief.” The waivers allow the EPA to exempt small refineries from complying with the Renewable Fuel Standard if the refineries can prove compliance would cause economic hardship. The memo did not specify how many refineries were involved. Biofuels producers and farmers are waiting for the White House to announce a mitigation plan for the waivers. President Donald Trump has promised a “giant package” for farmers to boost the ethanol market. Many expect the plan will reallocate lost biofuels due to the waivers. The 31 small-refinery exemptions granted by the EPA for 2018 amounted to about 1.6 billion gallons taken away from ethanol and biofuel use. Ethanol plants are stopping production, claiming the waivers are eroding demand for biofuels in the United States. ************************************************************************************* Gates Foundation Supports Small-Scale Food Producers in Climate Adaptation The Bill and Melinda Gates Foundation this week announced $790 million to help small-scale food producers adapt to climate change. The funds stem from a partnership between the foundation, the World Bank and others. The group says climate change “is already taking a severe toll on farmers, especially in developing countries.” The commitment follows the recently released report from the Global Commission on Adaptation that calls for global leadership to accelerate adaptation. The Commission finds that investing in adaptation “can yield significant economic, environmental and social benefits.” The funds will support the organization CGIAR (C-G-I-A-R) formally called the Consultative Group for International Agricultural Research. The funds will assist the organization in developing innovations that will help smallholder farmers “improve their livelihoods and build resilience in the face of climate change.” CGIAR is self-described as a global partnership that unites international organizations engaged in research for a food-secured future. The global organization was founded in 1971 as an effort to reduce poverty and hunger.
| Rural Advocate News | Thursday September 26, 2019 |
Washington Insider: Tensions at the Economic Research Service A political fight at USDA that has spanned decades has broken out once again, and seems as controversial as ever, Politico is reporting this week. It involves the former Bureau of Agricultural Economics and its modern derivative, the Economic Research Service. Most reports about ERS history see 1961 as its beginning but its roots go back much further, even to the 1905 Office of Farm Management – which later became the Bureau of Agricultural Economics. That bureau was charged with analyzing USDA’s depression-era programs and became USDA’s “central planning agency” for policy and analysis of policy impacts. In 1953, the incoming administration shifted BAE’s policy planning efforts to an administrative office and reassigned most of its research to operating agencies. It was reestablished as a separate agency, the Economic Research Service, in 1961 where it has operated since. The agency sees its responsibility as conducting sound, peer-reviewed economic research – including the anticipation of issues that are on the horizon, as well as a broad range of statistical indicators that gauge the health of the ag and rural sector. These are used by the White House and other USDA agencies and many others across the nation. Most of the agency’s work is conducted in Washington, DC – its 2018 activities report said that it had no field staff. Recently Trump administration began to shift many of the ERS positions and a few others to Kansas City, a decision that has been highly unpopular in ERS – Politico says it led to “mass attrition.” A key aspect of the move is whether or not it will interfere with important agency functions. Now Politico says the agency is warning USDA officials that the move could lead to “significant delays in vital research reports.” Politico says the internal USDA memo was drafted for planning purposes and identifies some 38 specific reports that may be delayed “because staff members have departed,” and which include research on topics such as consolidation in the dairy industry, food security among veterans, international agricultural market access and others. Some reports may even be discontinued, such as those that calculate “price spreads,” the share of food dollars that goes to farmers. Asked to comment on the internal document, a USDA spokesperson told Politico that "ERS has taken important action to ensure mission continuity and delivery of mission critical work throughout the transition and as a result, the agency is on track to complete its congressionally mandated projects. Separately, the union for the agency’s employees estimates that only 19 out of 280 employees have chosen to move, just 7 percent of total staff. USDA has a deadline of Sept. 30 for current employees to change their status and those "numbers are changing daily," Politico said. Since the move was announced in August of last year, 88 employees left the agency and 50 staffers chose to retire, according to the union. Forty-four employees were granted special accommodations allowing them to temporarily keep working in Washington, such as via telework or an extension to their report date in the new office space. A reported 79 employees will stay in DC to carry out operations deemed "core" by USDA, Politico said. USDA says it is actively recruiting for more than 100 positions for the agencies affected by the move. Agriculture Secretary Sonny Perdue has defended the move as a means to cut costs, improve recruitment and retention of staff and bring USDA closer to farming communities. USDA claims that the relocation would save about $20 million per year over 15 years. But several employees and former officials dispute that estimate and suggest the department ordered the relocation to stifle research that contradicts the administration's agenda. Congress is set to confront the issue during conferences of the fiscal 2020 spending bills. The House bill blocks the department from carrying out the move while the Senate measure provides $25 million in relocation funds. An investigation by USDA's inspector general released this summer suggested that the department may have broken the law by not obtaining congressional approval before relocating two research agencies out of Washington, Politico says. Many commodity and trade-related outlook products are expected to be released on time, the internal memo states. But most outlook reports “will be shortened if key staff depart before new hires are trained and if secure IT connections preclude remote participation” in the World Agricultural Supply and Demand Estimates report, an important forecast of market conditions for major crops and livestock. A current ERS employee, granted anonymity out of fear of retribution, told POLITICO that cellphone service and Wi-Fi access was cut off several weeks ago. Photos have been removed from office walls and personal trash cans were taken as well, the staffer said. So, this political fight continues and likely will intensify. The Economic Research Service is a highly regarded operation, responsible for important studies and analyses. At the same time, USDA notes that many offices of other agencies such as the Forest Service and the Bureau of Land Management – among many others – have highly decentralized operations. However, producers should watch closely to insure that the Department does not, in fact, cut back on important services as opponents of the ERS location shift change is happening, Washington Insider believes.
| Rural Advocate News | Thursday September 26, 2019 |
Mixed Signals Continue from Trump on China Trade Deal Prospects President Donald Trump Wednesday again shifted his commentary on the U.S.-China trade situation, proclaiming that an agreement between the two sides could come faster than most think. "They want to make a deal very badly... It could happen sooner than you think," Trump told reporters in New York. He said China was trying to be nice to him and added to reporters: “I was nice to them.” Later on Wednesday, Trump commented, "We're having some very good conversations.” He continued his positive tone, stating, "China is starting to buy our agricultural product again. They’re starting to go with the beef and all of the different things, pork, very big on pork." But as he has shown previously, he followed up by commenting, “The question is, do we want to make a deal?” His Wednesday remarks stand in contrast to the harsh words he delivered at the UN on Tuesday. “Not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced technology transfers and the theft of intellectual property and also trade secrets on a grand scale,” Trump said. So the U.S.-China trade situation continues to marked by comments that at times are positive only to be followed by up remarks that quickly dampen hopes this trade issue is going to be resolved soon
| Rural Advocate News | Thursday September 26, 2019 |
US and Japan Ink Partial Trade, Boosting US Ag Access President Donald Trump and Japanese Prime Minister Shinzo Abe signed a trade deal that covers agriculture and digital trade between the two countries in New York. But the agreement does not cover a huge portion of the U.S.-Japan relationship – autos. Under the agreement, some $7.2 billion in U.S. ag goods will get improved access to the Japanese market, access equal to what would have resulted from the Trans-Pacific Partnership (TPP) agreement. After the deal is in place, more than 90 percent of U.S. ag goods will be able to go to Japan with more-favorable terms. As for autos, that was kept out of the agreement. The issue had become a sticking point and prompted some downbeat expectations Tuesday for success. But jettisoning auto provisions helped seal the agreement signed by the two leaders in New York. Most U.S. ag groups welcomed the deal and several indicated they looked forward to being on the same page as supplier from other countries that are part of the successor to TPP.
| Rural Advocate News | Thursday September 26, 2019 |
Thursday Watch List Markets Weekly jobless claims and GDP numbers will be out on Thursday morning. We will also be watching for export sales, and confirmation of any new soybean sales to China, and any new details regarding the new U.S.-Japan trade deal signed on Wednesday. Weather A few thundershowers will move from the southeast Plains across the northern Delta Thursday and Thursday night but these look to be light. Light to moderate rain will develop across the southern Canadian Prairies and northernmost areas of the Northern Plains during this time. Mainly dry elsewhere in the key U.S. growing areas Thursday. Temperatures below normal in the west and central Canadian Prairies, near to above normal northern US, above normal southern U.S.
| Rural Advocate News | Wednesday September 25, 2019 |
U.S., Japan Hit Sticking Point in Negotiations U.S. President Donald Trump is hoping to sign a limited bilateral trade deal with Japan when he’s face-to-face with Prime Minister Shinzo Abe (AH-bay) on Wednesday at the U.N General Assembly. However, Japanese officials are pushing for a provision that the U.S. won’t like. Politico says Japan wants a provision in the agreement that would allow them to “blow up the agreement” and slap retaliatory tariffs on U.S. farm goods if President Trump moves forward with tariffs on automobiles from Japan. Multiple sources who are familiar with the negotiations tell Politico that the request is putting a speed bump in the final stages of the talks. Negotiators are looking to give Japan a full exemption from Trump’s tariff threats. However, Japanese officials are said to “remain cautious” about reassurances from Washington. This pact with Japan is a big priority for U.S. agriculture. Farm exporters say they’re losing market share to competitors like Australia, Canada, and the European Union. Competitors continue to benefit from greater access to the lucrative Japanese market. ********************************************************************************************** More Optimism for Upcoming Talks Between China and the U.S. The Chinese Vice Premier, who’s leading China’s efforts in the trade talks with the United States, will be back in Washington next week. An Agri-Pulse report says he’ll be across the table from U.S. Trade Representative Robert Lighthizer. Earlier this week on the sidelines of the United Nation’s General Assembly in New York, U.S. Treasury Secretary Steven Mnuchin (Muh-NOO-chin) said, “We’re looking forward to those conversations.” Deputy Ag Secretary Steve Censky spoke in Kansas City on Monday during the annual Ag Outlook Forum. He said the conversations that took place last week with Chinese officials were “positive and productive.” Several media reports say Chinese buyers purchased between 600,000 and 1.5 million metric tons of U.S. soybeans on Monday for delivery between October and December. The U.S. Soybean Export Council reports that China relaxed import tariffs for the purchases to make sense, given a price spread that favored U.S. soybeans. Additionally, Mnuchin admitted Monday that it was a White House decision to call off a planned trip a Chinese delegation was going to take to Montana and Nebraska this week. Mnuchin said officials “didn’t want any confusion around the trade issues.” ********************************************************************************************** Chinese Demand Pushing Meat Prices Higher China has recently been buying a lot of meat. The Wall Street Journal says their recent purchases are pushing up the prices of beef, pork, and poultry around the globe. Meat buyers are increasing their activity after African Swine Fever hit the country hard and reduced the size of the world’s largest pig herd by more than a third. Domestic pork prices have jumped in China and meat imports are rising in response and placing a strain on global meat supplies. For example, Brazil poultry shipments to China have jumped 31 percent compared to last year. Retail prices for chicken breasts, thighs, and legs have increased roughly 16 percent. European meat buyers are paying five percent more for pork because more of their domestically produced supplies are heading to China. American shoppers haven’t felt the impact yet, but that may change. Futures prices recently rose after Chinese officials say the country could exempt some U.S. pork and other agricultural goods from punitive tariff increases. Many American meat companies have watched as European and South American competitors have raced each other to supply China’s pork needs. ********************************************************************************************** U.S. Biofuel Industry is Still Waiting Despite meetings last week at the White House, the waiting is continuing for the biofuels industry. No new details have emerged on the possible reallocation of lost biofuels in the nation’s fuel supply. USDA Deputy Secretary Steve Censky (SEHN-skee) announced on Monday that the administration isn’t ready to give out details on potential changes in volume obligations to offset lost demand due to the Environmental Protection Agency’s small-refinery RFS waiver exemptions. Censky says the administration wants to ensure that potential policy changes will meet the blend level requirements under the Renewable Fuels Standard. Censky spoke at the Ag Outlook Forum in Kansas City. He says the next steps on any plan coming out of the White House will be taken by Larry Kudlow, the White House Economic Council Director. Censky says he doesn’t have any specific timeframe in mind yet for an announcement. “I’d love to have it sooner than later,” he says. “I think that farmers, as well as the biofuel community would love to have that kind of certainty announced soon. That’s what we’re advocating.” The 31 small-refinery exemptions granted by the EPA amounted to about 1.6 billion gallons taken away from ethanol and biofuel use. ********************************************************************************************** HungerU Launches College Tour to Share Ag Story This year’s class of HungerU (Hunger You) ambassadors are getting ready to launch a tour of colleges around the country. The preparation work included a day of educational presentations in Washington, D.C. For those who don’t know, HungerU, a Farm Journal Foundation program, is an educational and advocacy platform designed to engage university student populations around the country. A central purpose of HungerU is to communicate outside the agricultural bubble with future influencers, including voters, consumers, and community leaders. The goal is to educate people on the central and necessary role that modern agriculture plays in creating affordable, wholesome food for everyone. This year’s college tour focuses on the Mid-Atlantic states. Just a few of the schools include George Washington University, Howard University, the University of Pennsylvania, and more. This year’s ambassador team combines expertise in areas such as nutrition, communications, gardening, and many more. Additionally, this year’s fall tour marks the third year of the National Corn Growers Association’s partnership in the program ********************************************************************************************* Food and Farm Facts Now Available to Tell the Story of Agriculture The new Farm and Food Facts book, map, and pocket guide are now available. The information is produced by the American Farm Bureau Foundation for Agriculture. “Food and Farm Facts provides the opportunity to share the story of agriculture,” says Foundation Chair Zippy Duvall. “It talks about the how and why farmers do what they do to produce food, fiber, and renewable fuel. I hope it also puts into perspective how blessed we are to be Americans.” Food and Farm Facts will help answer questions like, “Where does our food come from and who grows it?” The 32-page, full-color book features updated facts and easy-to-read infographics that can be used in a variety of ways to help increase agricultural literacy. The Farm Bureau Foundation says the book will be a valuable resource in the classroom, at fairs and events, for student leadership organizations, and on social media.
| Rural Advocate News | Wednesday September 25, 2019 |
Washington Insider: Concerns About US, Japan Trade Deal The urban media is intensely interested in trade policy now, especially the talks with China but also with Japan. Thus, it was a modest surprise when the New York Times and others reported on Tuesday that the U.S. and Japan may fall short of signing a new deal this week, as negotiators from both countries grapple with how to resolve the U.S. threat to place tariffs on cars from Japan. However, reports late Tuesday afternoon indicated the two sides had completed their negotiations. The two countries had been working toward finishing a “limited” deal this week, as both President Donald Trump and Prime Minister Shinzo Abe of Japan prepare to appear side by side at the UN General Assembly meeting in New York. The key holdup had been the U.S. threat to tax cars imported from Japan. The threatened levies would be similar to those already placed on steel and aluminum imported from Japan, Europe and other nations. NYT says the President has long seen the threat to tax cars, which make up more than one-third of U.S. imports from Japan, as a source of leverage that has brought Japan to the trade negotiating table. But that threat — and the U.S. administration’s “mercurial negotiating strategy” — has also become an obstacle to the deal’s resolution, the Times said. Japan is seeking a firm commitment from the administration not to tax its cars and is pushing to include a “sunset clause” that would cause the deal — and any benefits it has delivered to American agricultural producers — to expire if the U.S. follows through on its car tax threats. The impasse raises questions about whether the United States and Japan will be able to finish the deal in the near future, in time for the Japanese legislature to consider it when it convenes next month. The prospective deal was expected to reduce barriers to American exports of beef, pork and wheat, helping to shore up administration political support for U.S. farmers who have been badly hurt by his trade war with China, the Times said. In return, the United States would drop its barriers to Japanese machinery and chemicals and both sides would sign onto new standards for e-commerce and other digital trade. After meeting with Abe at the summit of global leaders in France in August, Trump said that the United States and Japan had reached an agreement “in principle.” Last week, his administration sent a notification to Congress that it intended to enter into an agreement in the coming weeks. Unlike a traditional trade agreement, which would cover nearly all sectors of the economy, the proposed Japan deal would be confined to a few sectors and products. But it would be an important political talking point for the president who has struggled to make progress in trade talks with China and has not persuaded congressional Democrats to pass the revised North American trade deal. It could also help mollify American farmers and ranchers, who have complained about the administration decision to pull the U.S. from the Trans-Pacific Partnership, a multi-country trade deal that included Japan. The president argued then he could secure better trade terms for American farmers through bilateral talks. While Japan initially resisted administration requests for one-on-one negotiations on trade, the threat of auto tariffs brought Japan to the negotiating table to discuss a more limited agreement. The administration determined this year that automobile imports posed a threat to U.S. national security by eroding its industrial base that also supplies its military. That allowed the president to impose tariffs on foreign cars and car parts as he has done on imports of steel and aluminum, including from Japan. But in May the administration postponed that decision an additional six months as it continued to negotiate trade agreements with both Japan and the European Union. One of Japan’s main priorities has been a guarantee that its cars will not be hit by such a tax. Daniel C. Sneider, a lecturer in East Asian studies at Stanford University, said inserting a clause into the deal that would withdraw Japan’s concession on agriculture if U.S. taxes cars “is a very clever solution to their problem.” He added current tensions at least in part arise from the perception that the administration “cannot be trusted” but that the Japanese cannot say that in public. So, we will see. The proposed deals awaiting approval are very important for both economic and political reasons. However, the debates over approval likely will continue to be contentious and should be watched closely by producers as they evolve, Washington Insider believes.
| Rural Advocate News | Wednesday September 25, 2019 |
Grassley Blasts Delay in Biofuels Announcement Patience on a biofuels announcement from the Trump administration is running thin with Sen. Chuck Grassley, R-Iowa. “This agreement we have with the White House, it is 15 billion gallons, why isn't that the end of it?” Grassley told reporters on a weekly call. "Let's either do our job or get off the pot. Let's call this thing to an end. We ought to have this paper from the EPA yesterday.” Grassley has talked about an apparent agreement reached during a meeting at the White House some two weeks ago in which the Small Refinery Exemptions (SREs) would still be granted by EPA, but the agency would account for those in setting biofuel levels under the RFS. “This is hurting the president more in Iowa than even the China debate,” Grassley said. “I think farmers have patience with China, the negotiations going on with China. They know China has been cheating. What they do not understand is, they are promised 15 billion gallons of ethanol to be used, but get 13.6 [billion gallons].” EPA data shows that as of September 19, there have been 42 SREs requested, with 31 granted, six were denied, three were withdrawn or declared ineligible and two are listed as still pending.
| Rural Advocate News | Wednesday September 25, 2019 |
US-China Talks Set for Week of October 7 Treasury Secretary Steve Mnuchin initially said Monday that U.S.-China trade talks with Vice Premier Liu He would take place next week in Washington, but later revised his statement to say that it would be the week of October 7. “I think it is not next week but the following week we will be having those talks,” Mnuchin said in an interview with Fox Business Network, adding that deputy-level negotiations last week had made some progress in easing trade tensions. Some people closely following the talks said they expect the confab to take place October 10-11. “We look forward to those conversations,” Mnuchin said Monday on the sidelines of the United Nations General Assembly in New York. “The president has been very clear: if we can get the right deal, he wants the deal,” Mnuchin said. “If we cannot get the right deal, he is happy with the tariffs.” Mnuchin also said the U.S. had requested China postpone visits to U.S. farms in Montana and Nebraska this week, a development which raised anxiety about the trade talks. Word that the talks are scheduled has eased some concerns on the U.S.-China trade front, but have not totally removed concerns given the history of how quickly this issue can shift.
| Rural Advocate News | Wednesday September 25, 2019 |
Wednesday Watch List Markets The U.S. Census Bureau starts the day with a report of new home sales for August at 9 a.m. CDT, followed by the Energy Department's weekly reports of energy inventories at 9:30 a.m. U.S. ethanol inventory is included and showed an increase to 23.2 million barrels last week. Weather forecasts remain closely watched with row crops getting closer to harvest in southern states. Weather Light to moderate rain will cross the southern and eastern Midwest Wednesday. Dry conditions will be in place elsewhere. Temperatures will be seasonal to above normal north and central and hot south. A new storm system is indicated for northern and western crop areas during the coming weekend.
| Rural Advocate News | Tuesday September 24, 2019 |
Washington Insider: Congress Struggles Ahead of Coming Recess The Hill and other media are reporting this week that the Congress is working under pressure to pass a continuing resolution to fund the government through Nov. 21 before it leaves town. The House already passed its stop-gap bill and Senate Majority Leader Mitch McConnell, R-Ky., has started the process of bringing it to the Senate floor, but it hasn’t been scheduled yet for a vote. McConnell acknowledged earlier that a short-term bill would be needed to avoid an end-of-September shutdown and that a temporary continuing resolution for the outstanding parts of the government will be needed before that time. However, he hasn’t yet weighed in on the House-passed CR, which was unveiled last Wednesday. In addition to funding the government, the bill would require USDA to provide state-by-state data on the effects of the president’s trade war. It also extends several health programs, the National Flood Insurance Program and authorizations for the Export-Import Bank. The decision to punt the government funding fight to later in the year comes amid other significant battles that loom over the fiscal 2020 bills. While the House passed 10 out of its 12 funding bills, many of them include “poison pills” inserted by Democrats meaning they won’t get taken up as is by the GOP-controlled Senate. The Senate, meanwhile, hasn’t passed any of its fiscal 2020 bills. Senate Democrats blocked an attempt by McConnell last week to bring the first funding package to the floor, which was expected to include funding for the Pentagon; the departments of Health and Human Services, Labor, and Education; the Energy Department and water development; and the State Department and foreign operations. Democrats opposed bringing up the bill because of frustration about the top-line spending numbers for all 12 bills. Those estimates were approved by the Appropriations Committee in a party-line vote but opposed by Democrats who believed that they included extra border money in the Department of Homeland Security bill to replace that diverted by the administration for the border wall. Democrats also opposed the Senate’s defense funding bill after Republicans objected to language that would prevent Trump from shifting military spending toward the wall without congressional sign off. “The appropriations process demands that Republicans and Democrats work together. If one party decides to go it alone, it can wreck the spirit of bipartisanship necessary to responsibly fund the government. Unfortunately, Republicans elected to depart from a bipartisan path early in the appropriations process this year,” said Senate Minority Leader Charles Schumer, D-N.Y. The Senate Appropriations Committee is scheduled to vote on four bills this week: interior and environment; commerce, justice and science; the legislative branch; and the Department of Homeland Security. The DHS bill is expected to spark a brawl in the committee because Republicans included money for the U.S.-Mexico border wall and because it covers lightning rod issues like Immigration and Customs Enforcement and detention beds. Senate Democrats could force a vote as soon as this week on a resolution to nix Trump’s emergency declaration on the wall. Congress previously voted to end the emergency declaration in February, but the House was unable to override the president’s veto. Under the National Emergencies Act, Democrats can force a vote on the resolution every six months. A bipartisan group of senators reintroduced the resolution on Sept. 11. Democrats are fuming after the Pentagon announced earlier this month it would be moving forward with its plan to redirect $3.6 billion in military funding toward the wall under the emergency declaration. Schumer said that Democrats would force a vote within the month, which would have to be this week before Congress leaves town. “The president’s national emergency declaration was, and is, an outrageous power grab by a president who refuses to respect the constitutional separation of powers,” Schumer said from the Senate floor at the time. House Majority Leader Steny Hoyer, D-Md., announced Friday that the House will take up two bills led by Democrats and aimed at improving "how the Department of Homeland Security oversees border issues in a humane and responsible manner, including the care of children." Both bills are expected to face an uphill battle in the Republican-controlled upper chamber. So, we will see. It appears that there is little support for a government shutdown just now, but the number of inflammatory issues is very large — and reluctance to push bi-partisan agreement appears to be fully woven into the partisan politicking ahead of the 2020 election. Producers should watch each of these fights very closely as they intensify over the coming days, Washington Insider believes.
| Rural Advocate News | Tuesday September 24, 2019 |
Biofuel Announcement Now on Hold as Trump Seeks Still More Info As last week closed, it appeared that issues relative to US biofuel policy had been settled and an announcement from the Trump administration was expected to come. That assessment came from sources in the wake of the meeting September 19 between President Donald Trump and senators representing refining interests. However, as this week opens, sources now indicate that Trump is seeking more perspective and options in the matter, reportedly bringing National Economic Council chief Larry Kudlow into the mix. Expectations were that the Trump administration was poised to announce that they would use a three-year average to reallocate Renewable Fuel Standard (RFS) obligations that were covered by small refinery exemptions (SREs), starting with the 2020 compliance year. Coming out of the Thursday meeting, it appeared that refiner interests were likely to get a cap on prices for Renewable Identification Numbers (RINs), the credits refiners can buy to show compliance with the RFS. However, now that the matter has apparently been thrown open once again, the expectation for an announcement has turned to uncertain relative to the timing of any announcement from the Trump White House.
| Rural Advocate News | Tuesday September 24, 2019 |
US, China Label Deputy-Level Talks ‘Positive’ & ‘Constructive’ U.S. and Chinese deputy-level talks Thursday and Friday in Washington were labeled “positive” and “constructive” by both the U.S. and China in separate statements issued following the talks. The sessions were “aimed at improving the trade relationship between the two countries,” the Office of the U.S. Trade Representative (USTR) said in a statement. “These discussions were productive, and the United States looks forward to welcoming a delegation from China for principal-level meetings in October.” The China Daily reported the talks “discussed the trade issues in a constructive way. Moreover, the two countries also talked the specific arrangements for the 13th round of China-U.S. high-level economic and trade consultations in Washington DC in October. The two sides agreed to maintain communication on relevant issues.” President Donald Trump declared Friday that the U.S. would not accept an interim agreement on trade as the U.S. is “looking for a complete deal.” Speaking to reporters at a news conference Friday with Australian Prime Minister Scott Morrison, Trump said China’s offer to boost purchases of U.S. agriculture exports alone is not enough to compel his administration to sign a deal. Intellectual-property theft, he added, remains an issue that must be resolved. As for the farm visits that were canceled, Han Jun, vice-minister at the Ministry of Agriculture and Rural Affairs, said the canceled visit was due to a change in the itinerary of the team. "There was a good outcome from the negotiations in the agriculture area too. The two sides had thorough and candid communications," Han said, according to a report by state-backed Yicai news outlet.
| Rural Advocate News | Tuesday September 24, 2019 |
USMCA, China Trade Talks Advancing This Week Trade talks continue this week between the U.S. and China as the U.S.-Mexico-Canada Agreement inches closer to reality. President Donald Trump says talks last week between the U.S. and China "were very positive." Negotiations will continue this week ahead of high-level talks planned sometime next month. A Chinese delegation canceled U.S. farm visits last week, but apparently not because of the ongoing trade negotiations. Officials say the trips were canceled to avoid excessive media attention. Meanwhile, Democrats in the House of Representatives plan to submit a counterproposal to the White House this week on changes to USMCA, according to Politico. House Ways and Means Chairman Richard Neal says the USCMA working group would meet with U.S. Trade Representative Robert Lighthizer this week to “intensify the discussion.” Neal is hopeful the group and Lighthizer can “strike a deal soon,” that allows the House to vote on the agreement. Neal says the concerns raised by Democrats are not resolved but added the Trump administration has “made substantial progress.” ************************************************************************************* U.S. Dairy: Japan Trade Agreement Could Leave Dairy Behind Lawmakers representing dairy country say the trade agreement with Japan fails to level the playing field for U.S. dairy. Late last week, a group of lawmakers joined Representative Ron Kind, a Wisconsin Democrat, in a letter to U.S. Trade Representative Robert Lighthizer detailing the issue. The lawmakers say U.S. dairy will have “inferior access to the market compared to competitors,” like the European Union and signatories of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The agreement fails to level the playing field for U.S. exports of cheese, butter, skim milk powder, ice cream and condensed milk, according to the lawmakers. The administration is required to consult with Congress when new trade agreement negotiations are happening in order to ensure any new agreement would include access for key agriculture sectors like dairy, according to the letter. However, “Those conversations never happened.” Representative Kind adds President Donald Trump “needs to stop using our farmers as pawns and start making trade deals that empower them.” ************************************************************************************* USCA: Successful USMCA Negotiation Will Include COOL The U.S. Cattlemen's Association is urging President Donald Trump to reinstate country-of-origin labeling for beef in the U.S.-Mexico-Canada Agreement. Though COOL failed to make it into the final text of the trade pact replacing the North American Free Trade Agreement, the organization says, “there is still an opportunity to address the unfair treatment of cattle and beef in this trade agreement.” The association sent the request to President Trump in a letter, stating, “The impact of a poor cattle market and decreasing live cattle prices coincide with the continued decline in America’s rural economy and the rising income disparity between rural and urban residents.” USCA President Kenny Graner states, "We respectfully request the inclusion of a country-of-origin labeling program for U.S. beef products within the context of USMCA.” The letter continues to say USMCA without COOL “deprives U.S. Cattle producers of the ability to differentiate their product in the market.” The letter follows a similar effort in early July by a coalition of freshman House members. ************************************************************************************* Senate Democrats: Withdraw SNAP Proposal Eliminating Categorical Eligibility A letter from 15 senators urges Agriculture Secretary Sonny Perdue to withdraw a proposal they say would take food assistance away from millions of families. The proposal would eliminate categorical eligibility under the Supplemental Nutrition Assistance Program. The 15 Democrats, including Debbie Stabenow of Michigan, say the rule would impact the "most vulnerable populations" in the U.S., including 13 percent of seniors currently receiving SNAP benefits. According to an analysis by Mathematica, at least 3.6 million SNAP participants will lose benefits as a result of the proposed rule. In the 2018 farm bill, the letter says Congress deliberately chose to exclude any changes to categorical eligibility due to the “devastating impact on families.” Additionally, the Senators raised concerns that the administration failed to conduct an accurate regulatory impact assessment. In a briefing to Congressional staff, USDA acknowledged that, at a minimum, 500,000 children would lose access to school meals. However, these impacts, among others, are not included in the required analysis. ************************************************************************************* Plant-Based Protein Market Projected at $40 billion in 2025 A market research study claims the plant-based protein market will be worth an estimated $40 billion by 2025. The report, published by MarketsandMarkets, says the sector is driven by the rising demand for so-called plant-based meat and healthy food products. Currently, the plant-based protein market is estimated at $18.5 billion. The $40 billion projection would represent a 14 percent growth rate. Researchers say public awareness regarding the increase in obesity levels due to unhealthy food consumption that includes packaged food, fast food, carbonated beverages, cold drinks, and excess consumption of animal meat has led to the demand for plant-based protein products. A significant increase in the usage of peas as a key ingredient is being noticed in the plant-based industry. The pea segment is projected to be the fastest-growing in the plant-based protein market during the forecast period. Pea protein is gaining popularity among plant-based protein manufacturers at a global level owing to its high protein content, and health benefits offered such as reduced cholesterol and lower blood pressure. ************************************************************************************* USDA Invests in Water and Wastewater Infrastructure Improvements in 25 States The Department of Agriculture Monday announced $144 million in rural water infrastructure improvements. USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. Through the effort announced Monday, USDA will fund water projects in 25 states through 45 projects. The funds are authorized through the Water and Waste Disposal Loan and Grant program eligible applicants include rural cities and towns, and water districts. They can use the funds for drinking water, stormwater drainage and waste disposal systems in rural communities with 10,000 or fewer residents. Deputy undersecretary of rural development Donald LaVoy says "modern and reliable water and wastewater infrastructure systems are foundational to economic growth and quality of life in rural communities." One of the projects, $8.8 million for Winfield, West Virginia, will upgrade its wastewater treatment plant. USDA had $2.9 billion available for Water and Environmental Program loans and grants at the beginning of fiscal year 2019. For more information and a list of funded projects, visit www.rd.usda.gov.
| Rural Advocate News | Monday September 23, 2019 |
House Passes Continuing Resolution That Allows Aid Payments to Farmers On a bipartisan vote of 301 to 123, the House passed a continuing resolution that funds the government through November 21. The resolution includes a provision that will allow the Ag Department’s Commodity Credit Corporation to continue to make aid payments to farmers. That includes Market Facilitation Payments to help make up for export sales lost in recent trade wars. The Hagstrom Report says House leadership and USDA officials negotiated a provision that requires the Ag Department to report to Congress on the trade aid program. The bill goes to the Senate and is expected to be passed quickly. It then moves to President Trump’s desk for his signature. House Appropriations Chair Nita Lowey had initially left the CCC provision out of the bill but put it back in after getting pressure from both Republicans and Democrats. House Ag Committee Chair Collin Peterson is happy the assistance is continuing. “The call for more transparency in this program is a good one,” he says. “I appreciate USDA’s willingness to ensure that help gets out the door on time to the farmers who need it. At the same time, it allows taxpayers to see where the funds are going.” ********************************************************************************************** Chinese Delegation Heads Home Early Chinese trade negotiators did an about-face on Friday, canceling a visit to meet U.S. farmers after they wrapped up trade talks in Washington last week. A CNBC article says the Chinese delegation is headed back to China earlier than planned. Nicole Rolf, director of national affairs with the Montana Farm Bureau, says there wasn’t any explanation as to why they cut their trip short. Nebraska ag department officials also confirmed that the Chinese delegation called off a visit to farms in that state as well. U.S. Ag Secretary Sonny Perdue had confirmed last Thursday that the meetings were in the works as a way for China to build goodwill with American farmers. The Chinese delegation was going to visit Bozeman, Montana, and Omaha, Nebraska. The unexpected cancellation puts a damper on hopes that China would restart purchases of U.S. agricultural products, which it halted in April as retaliation against U.S. tariffs. China made up $5.9 billion in U.S. farm product exports in 2018. It’s the world’s top buyer of soybeans and purchased about 60 percent of U.S. soybean exports that year. Tensions between the two countries had eased as both countries held off on imposing additional tariffs on each other’s goods. ********************************************************************************************** U.S. and Mexico Avoid Anti-Dumping Dispute on Tomatoes Mexican tomato growers have signed a deal to raise the prices of the tomatoes they sell in the U.S. market. Politico says that ends a threat from Washington, D.C., to slap a 25-percent anti-dumping tariff on tomato imports. Commerce Secretary Wilbur Ross says the deal will protect U.S. growers from unfair trade practices. However, not all domestic importers were happy with the final agreement. They say the pact doesn’t include border inspection waivers for individual shipments if USDA can’t complete an inspection within a day. Lance Jungmeyer is president of the Fresh Produce Association of the Americas, who says the tomato deal is a step backward. “USDA has assured us the inspections can be done within 24 hours,” he says. “If that’s really the case, then there shouldn’t be a problem including language for a waiver if a deadline can’t be met occasionally.” The new deal will likely end the 17.5 percent duty that importers have paid since early May on Mexican tomato imports. The agreement also suspends the dumping investigation of Mexican tomatoes into the U.S. ********************************************************************************************** China, Russia Agree to Double Their Trade in Five Years to $200 billion China and Russia recently wrapped up three days of talks with an agreement to double their trade in five years. The two nations set a goal of increasing their trade to $200 billion in the next half-decade. Business Times says the two nations will work together to remove tariff and regulatory barriers to the exchange and trading of various goods. China and Russia will work to improve the flow of agricultural, industrial, and technological products and services. Soybeans were a big topic of conversation between the Chinese Premier and Russian President Putin. Soybeans have become a major issue for China during its trade dispute with the U.S. Industry experts have said that China will get a good number of soybeans from Russia, which still won’t be able to replace the U.S. as China’s main supplier. While Russia doesn’t produce nearly the number of soybeans as the U.S., it is planning to increase soybean production in eastern parts of the country to help increase exports to China. ********************************************************************************************** Labor Department to Modernize H-2A Requirements Ag Secretary Sonny Perdue spoke positively about changes the Department of Labor will make to modernize the H-2A process. The Labor Department published a final, common-sense rule that becomes effective October 21, and eliminates the requirement to advertise job openings in local newspapers. Instead, it shifts the advertising to the Department of Labor and State Workforce Agency websites, which reach farther and are more cost-effective. The DOL’s Office of Foreign Labor Certification announced updates to the H-2A forms and online filing process for the H-2A temporary agricultural programs. Perdue says the two actions will ease regulatory burdens on U.S. farmers and ranchers, making it easier for them to follow the law and hire farmworkers through the program. “Both of these changes are absolutely critical and needed to improve the H-2A application process,” Perdue says. “By bringing these processes into the 21st century, it allows farmers to be able to better and more cost-effectively advertise for the workers they need and fill out the required forms faster and more efficiently.” He adds that no one should have to hire a lawyer just to hire a farmworker. The DOL’s final rule is designed to reduce burdens on American farmers and ranchers. ********************************************************************************************* Taiwan Trade Mission Signs Letter of Intent to Purchase U.S. Wheat Representatives from the Taiwan Flour Millers Association signed letters of intent to purchase wheat and other U.S.-grown commodities over the next two years. The millers, who signed the letters last week in Washington, D.C., are part of a biennial Taiwan Agricultural Trade Goodwill Mission. The wheat delegation first made stops in Oregon, Seattle, and Idaho before making the trip to D.C. The letter states that the Taiwan Flour Millers Association intends to purchase a total of 1.8 million metric tons, or about 66.1 million bushels of U.S. wheat between 2020 and 2021. The value of those purchases will be about $576 million. U.S. Wheat Associates President Vince Peterson says, “We’ve long had a mutually beneficial trade relationship with Taiwan’s milling and flour products industry. U.S. wheat farmers pioneered the market more than 60 years ago by meeting with members of the developing flour milling industry.” He says the members of the Taiwan Flour Millers continue to be reliable trading partners that fully recognize the value of purchasing quality U.S. grown wheat.
| Rural Advocate News | Monday September 23, 2019 |
Washington Insider: Tough Trade Talks With China Continue The New York Times is reporting that both the United States and China issued statements Saturday saying their recent talks were productive. At the same time, the Times noted that the combination of Friday’s tough words from President Trump and the cancellation of a planned U.S. trip by Chinese ag officials to two U.S. states seemed to cast a cloud over prospects for a trade deal and caused something of a sell-off in New York stock trading. China’s state-run Xinhua news agency said Saturday that fairly senior negotiators had “conducted constructive discussions” in Washington in recent days and had “agreed to continue to maintain communication.” The tone of the Xinhua statement was matched by a separate statement from the United States Trade Representative in Washington. “These discussions were productive, and the United States looks forward to welcoming a delegation from China for principal-level meetings in October,” the statement said. In addition, the Times emphasized that both sides’ trade negotiators have continued to look for a resolution of their differences even as tensions ratcheted ever higher over the summer — although the report noted that its sources “all insisted on anonymity, citing diplomatic sensitivities in the negotiations.” The delegation of Chinese ag officials that had planned to travel to Montana and Nebraska in the coming week but cancelled at the last moment did not act because of “any new difficulty in the trade talks,” the NYT said. Instead, the trip was canceled out of concern that it would turn into a media circus and “give the misimpression that China was trying to meddle in American domestic politics,” the Times said. The Chinese government has long taken the position that countries should not interfere in each other’s domestic affairs, a position developed partly in opposition to foreign criticisms of China’s human rights record. In recent weeks, the Chinese government and many Chinese internet users have also reacted angrily to calls by American officials for Beijing to show restraint in responding to increasingly violent pro-democracy protests in Hong Kong. China’s foreign ministry has repeatedly objected to what it describes as intervention in China’s internal affairs over Hong Kong. The question now is whether Vice Premier Liu He of China can make any progress when he comes to Washington for high-level talks next month. While the dates for those talks have not been confirmed, they look likely to be scheduled for Oct. 10-11, the Times said. The biggest obstacle facing negotiators may be agreeing on the scale and ambition of any deal they try to reach. The Times cited several of its sources that argue that China especially wants to reach a partial deal that would head off President Trump’s planned increases in American tariffs on Chinese goods set for Oct. 15 and Dec. 15. China is also seen as becoming increasingly wary of seeking any comprehensive resolution of the dozens of issues facing the two countries. As a result, its negotiators have tried to focus the talks on issues that can be resolved through regulations that the country already plans to issue by early January to implement a new law on foreign investments that the National People’s Congress approved in March. At the same time, Chinese trade negotiators have tried recently to exclude issues like data flows, the location of data and the setting of cybersecurity standards. These concerns tend to infringe on the turf of China’s internal security agencies, which have resisted any limits on their ability to conduct comprehensive surveillance within the country and are wary of allowing in American tech companies, the Times said. The United States has tried to persuade Beijing to adopt broad changes to Chinese laws to make the country more open to imports and to limit subsidies for industries, particularly advanced manufacturing industries that compete with American industries. However, President Trump objected on Friday to any partial deal. “I’m looking for a complete deal, I’m not looking for a partial deal,” the president said during a joint news conference with Prime Minister Scott Morrison of Australia. “We’re looking for the big deal.” There have nonetheless been several discussions between the two sides on reducing the value of American tariffs that are still pending and which are set to increase even further by mid-December. The United States also has been pressing China to buy more American food in exchange, purchases China likely will need as an epidemic of African swine fever has killed huge numbers of hogs and pigs. The two sides have nonetheless undertaken a series of smaller, confidence-building trade measures in the past two weeks. So, we will see. The pressure is strong and growing on both sides to strike some deal that will support increased trade and reduce recent reliance on broad tariffs — especially if the economies continue to exhibit signs of weakening. Clearly, the economic and trade talks and the fights they concern are issues producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Monday September 23, 2019 |
Labor Department Sets Final Rule On H-2A Changes The Department of Labor (DOL) will modernize the burdensome H2A visa process, eliminating the requirement to advertise a job opening in print newspapers. The advertising will now shift to the SeasonalJobs.dol.gov website, a mobile-friendly platform, and on State Workforce Agency websites. The changes will take effect October 21. “Both of these actions by DOL are critical changes the Administration is making to improve the H-2A application process,” USDA Secretary Sonny Perdue said. “By streamlining these processes, DOL is bringing the H-2A process into the 21st Century allowing farmers to be able to better and cost-effectively advertise for workers they need and fill out the required forms faster and more efficiently, because no one should have to hire a lawyer to hire a farm worker.”
| Rural Advocate News | Monday September 23, 2019 |
Biofuel Meetings Appear to Have Wrapped Up The meeting between President Donald Trump and oil-state senators Thursday appears to be the final meeting on the topic of U.S. biofuel policy, with those lawmakers focusing on their concerns over a package of changes the administration has developed. No details of Thursday's White House meeting have surfaced yet, although Sen. Bill Cassidy, R-La., said in a tweet that Trump had been receptive. “Just spoke with @realDonaldTrump on the renewable fuel standard — the president is very engaged on the issue, and feels as if we can work towards a solution which protects jobs,” Cassidy wrote. Biofuel backers remain cautiously optimistic the package that reportedly has been agreed to will be the final word. However, they are also wary of the potential for the apparent package to change. Said Senate Finance Committee Chairman Chuck Grassley, R-Iowa, last week: “I have been hoodwinked so many times, not just by EPA on this issue but by other bureaucracies as well, so I am going to see if what they talked about is the end product.” It is not clear whether the plan will be announced prior to November 30, the date that EPA has to finalize Renewable Fuel Standard (RFS) volume requirements for 2020 biofuels and 2021 biodiesel. The fact that neither biofuel backers nor oil industry interests are talking about the plan could be a sign it has met with approval by both camps. However, as signaled by Grassley, at least biofuel backers are wary until the final announcement is made.
| Rural Advocate News | Monday September 23, 2019 |
Monday Watch List Markets New weather forecasts for the week will be checked early Monday as will any news from over the weekend, especially if it concerns trade with China. USDA's weekly grain inspections will be released at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. Percentages of dented and mature corn remain markers of interest for this year's late planted crop. Weather Monday features a swath of rain from the Southern Plains to the eastern Great Lakes. Dry conditions will be in place elsewhere. Temperatures will be seasonal north and central and hot south.
| Rural Advocate News | Friday September 20, 2019 |
Former Ag Secretaries Join in Support of USMCA A group of former Agriculture Secretaries joined current Secretary Sonny Perdue in backing the U.S.-Mexico-Canada Agreement. The group signed a letter to Congress urging lawmakers to pass the trade agreement to “provide certainty in the North American market for the U.S. farm sector and rural economy.” The group included former Agriculture Secretaries John Block, Mike Espy, Dan Glickman, Ann Veneman, Mike Johanns, Ed Shafer and Tom Vilsack. Secretary Perdue says the letter shows support for USMCA “crosses all political parties, specifically when it comes to the agriculture community.” USDA says the agreement will create new market access opportunities for U.S. exports to Canada of dairy, poultry, and eggs. In exchange, the U.S. will provide new access to Canada for some dairy, peanut, and a limited amount of sugar and sugar-containing products. Canada and Mexico are the first and second-largest export markets for U.S. food and agricultural products, totaling more than $39.7 billion in exports last year, supporting more than 325,000 American jobs. ************************************************************************************* Dairy Margin Coverage Enrollment Deadline Extended The Department of Agriculture is giving dairy producers an extra week to sign up for the Dairy Margin Coverage program. USDA’s Bill Northey told lawmakers Thursday the deadline will extend to September 27. Northey made the comment during a House Agriculture Subcommittee on General Farm Commodities and Risk Management hearing. The Farm Service Agency later announced the deadline extension. More than 21,000 dairy farmers have signed up for the program. Authorized by the 2018 farm bill, the program offers protection to dairy producers when the difference between the all-milk price and the average feed cost, known as the margin, falls below a certain dollar amount selected by the producer. Margin payments have triggered for each month from January through July. Dairy producers who elect higher coverage levels could be eligible for payments for all seven months. Under certain levels, the amount paid to dairy farmers will exceed the cost of the premium. USDA encourages dairy producers to visit their Farm Service Agency office to learn more and enroll. ************************************************************************************* Study Confirms ASF Survives in Animal Feed Researchers at Kansas State University say African swine fever can survive in feed grains, prompting greater concerns of the disease spreading. The research confirms the virus can survive a simulated 30-day transoceanic voyage in contaminated plant-based feed and ingredients. Detailed analysis shows the half-life of African swine fever in feed ranges from 9.6 to 14.2 days after exposure to varying temperature and humidity conditions simulating transoceanic shipment. This means it would take approximately two weeks for the total viable virus concentration to decay by half its original count during shipment. Over the last year, African swine fever has emerged on new continents and spread to historically negative countries. Surviving shipments overseas provides an opportunity for the virus to infect swine in the United States and other countries through imported feed. African swine fever is now considered endemic in China, where pork production is forecasted to fall 25 percent by the end of the year. The disease has also spread to several other Asian countries and recently to Western Europe. ************************************************************************************* AFIA: Japan Trade Agreement a Boon for Animal Food Industry The American Feed Industry Association says a trade agreement with Japan will allow America's animal food and ingredient manufacturers greater access into Japan’s marketplace. President Donald Trump recently notified Congress of his intent to sign an agreement with Japan. AFIA President and CEO Joel G. Newman says the organization is hopeful the agreement “will show progress” in bringing the U.S. animal food industry closer to tariff levels offered to U.S. competitors in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Japan represents the United States' third-largest export market behind Canada and Mexico for feed, feed ingredients and pet food products at a value of $986 million in 2018. The agreement is expected to be signed along the sidelines of the United Nations General Assembly in New York this month. Agriculture has welcomed the agreement because it will remove market access barriers for U.S. exports to Japan. Top U.S. agricultural exports to Japan currently include beef, corn, pork, soybeans and wheat, totally $13 billion last year. ************************************************************************************* Health Groups Propose Recommendations on Drinks for Children Leading medical and nutrition organizations recommend staying away from added sugars in drinks for children five and under. The groups say breast milk, infant formula, water and plain milk are part of the new set of beverage recommendations for children. They caution against beverages with added sugars, including flavored and low-calorie sweetened beverages. The new guidelines add to recommendations to avoid other drinks on the market targeting children such as toddler formulas, caffeinated beverages, and plant-based/non-dairy milks which provide no unique nutritional value. The recommendations were developed as part of a collaboration by experts at the Academy of Nutrition and Dietetics, American Academy of Pediatric Dentistry, American Academy of Pediatrics and the American Heart Association. The groups say research shows that what children drink from birth through age five has a big impact on their health, both now and for years to come. Spokesperson Megan Lott says the recommendations “represent a clear set of objective, science-based recommendations for healthy drink consumption.” ************************************************************************************* USDA Highlights 2018 Food Spending Habits U.S. consumers spent $1.71 trillion on food and beverages in 2018, according to the Department of Agriculture. USDA’s Economic Research Service says spending at food-away-from-home establishments, restaurants, school cafeterias, sports venues, and other eating places, accounted for 54.4 percent of expenditures. The remaining 45.6 percent took place at grocery stores, supercenters, convenience stores, and other retailers. However, USDA says a 54.4-percent share of food expenditures does not equate to 54.4 percent of food quantities, as food purchased away from home is generally higher priced than food prepared at home. Food-away-from-home outlets incur costs for the workers required to prepare and serve food, as well as for buildings, equipment, and utilities. The away-from-home market, which accounted for about one-third of total food expenditures 50 years ago at 33.8 percent, has grown through the decades, except in some recession years. During most of the 2007–09 recession, food away from home spending stayed at or just below 50 percent before rising to 50.1 percent in 2009 and continuing to grow.
| Rural Advocate News | Friday September 20, 2019 |
Washington Insider: Farmer Politics and Trade Bloomberg is reporting this week that the administration has what it calls a "$28 billion bet that rural America will stick with the president." It begins with a long public phone call the White House made to a group being addressed by Ag Secretary Perdue. The President said, "horrible dishonest reporters will say that 'oh jeez, the farmers are upset.' Well, they can't be too upset, because I gave them $12 billion and I gave them $16 billion this year," he said. A couple of years ago, such a pep talk might have drawn raucous applause from one of the president's key constituencies, Bloomberg said, but notes that this time the crowd was "subdued." It cited a farmer who attended the event and said, "The aid package that has come in is a relief, and it softens the landing, but it's not a solution, it's a Band-Aid." When asked if the payments make him whole, the producer who grows 500 acres of soybeans near Decatur, responded, "Of course not." He'd rather have free trade, he said. China hawks in Trump's administration want Beijing to quit subsidizing strategic industries, "but that hasn't deterred the White House from doling out billions in aid to American farmers who have become more dependent on government money than they've been in years," Bloomberg said. At $28 billion so far, the farm rescue is more than twice as expensive as the 2009 bailout of Detroit's Big Three automakers, which cost taxpayers $12 billion. And farmers expect the money to keep flowing: A Purdue University survey in August found the almost 60% of producers said "they anticipate another round of trade aid next year." Farmers became collateral damage in the president's tit-for-tat tariff war with China, which is being waged primarily for the benefit of such sectors such as manufacturing and tech, Bloomberg notes. Efforts to cultivate China's appetite for American soybeans stretch back almost four decades and China bought more than $12 billion worth in 2017. Sales have declined sharply in recent years as the tariff wars accelerated. The administration slapped additional tariffs on about $110 billion in Chinese imports on Sept. 1 and China responded with tariffs on American-raised pork, beef, chicken, and other agricultural goods. Since then, the two sides have warmed, and in early September, China has reported that it will exempt some American soybeans, pork, and other agricultural products from more tariffs. For American producers, the hit to exports has further strained finances amid a six-year slump in prices for agricultural commodities. Net farm income is projected to be down 29% this year from 2013 levels, and debt is expected to reach $416 billion. Also, bad weather prevented farmers from planting about 11.4 million acres of corn and 4.5 million acres of soybeans, according to government estimates. Producers also have been dismayed that the administration has faltered on campaign pledges to uphold national consumption mandates for renewable fuels. Bloomberg thinks farmers will receive $19.5 billion in direct government aid this calendar year, the most since 2005 -- a figure that does not include the $10.5 billion forecast this year in federally subsidized crop insurance payments, the main vehicle for the regular farm subsidy program. Those funds won't cover all of farmers' losses. Iowa producers, for example, were purported to receive $973 million in direct payments from the first round of trade aid, covering a period in which Iowa State University estimated the trade war cost them $1.7 billion. So, the stakes are unusually high just now as the U.S. and China begin to take what the press calls "baby steps to ease tensions in their trade war," through face-to-face talks in Washington. However, Bloomberg warns, taken together the measures likely to be considered "pale in comparison to the oncoming hit from U.S. tariff increases still in the pipeline for October and December." At the same time, as evidence mounts in both nations of the economic damage that the trade war is doing, there appears to be more urgency for a deal. Also, despite the goodwill gestures, the two sides remain far apart on fundamental issues and officials continue to trade barbs. China wants the U.S. to remove all extra tariffs, and the U.S. has long sought concessions on intellectual property and state-subsidies for industry that Beijing has been unwilling to give. Clearly, producers should watch extremely closely as trade talks are undertaken in both the Atlantic and Pacific markets and as new trade interventions continue to be considered, Washington Insider believes.
| Rural Advocate News | Friday September 20, 2019 |
China Officials to Visit US Farms A portion of the Chinese delegation in the U.S. for deputy-level trade talks this week in Washington will stick around a little longer -- some of the group will visit U.S. farms with reports indicating stops in Nebraska and Montana. The South China Morning Post initially reported the visits would take place. CNBC Thursday also reported the delegation's plans. USDA Secretary Sonny Perdue confirmed the development after he appeared at a Washington event. "I think they want to see the production of agriculture," Perdue said. "I think they're trying to build goodwill and we welcome that. Specifically, where they will go and what they will do is not clear to us." Perdue also said the U.S. still expects China to make additional purchases of U.S. agricultural products. "They know our shopping list and we hope that they come and are prepared," he said. It is not clear if the trip will result in any signing ceremonies for the purchase of U.S. ag products or whether it is merely a goodwill gesture by China ahead of what have been expected to be higher-level U.S.-China talks in early October.
| Rural Advocate News | Friday September 20, 2019 |
House Clears Spending Plan With CCC Funding The House Thursday passed a continuing resolution (CR) to keep the government funded through Nov. 21 and avert a shutdown when Fiscal Year (FY) 2020 arrives Oct. 1. The bill won approval 301-123, sending the measure off to the Senate where it is expected to pass and be signed by President Donald Trump. The measure included restocking funding for the Commodity Credit Corporation (CCC), but calls on USDA to provide a report by Oct. 31 detailing the Market Facilitation Program (MFP) payments and other aid efforts used by the administration to help the ag sector deal with trade impacts. The efforts also revealed that partisanship has worked its way into the usually bipartisan world of agriculture, prompting a contentious exchange between Democrats and Republicans during a joint House Agriculture Subcommittee hearing on implementation of disaster and farm programs.
| Rural Advocate News | Friday September 20, 2019 |
Friday Watch List Markets USDA's monthly cattle on-feed is the only official report on Friday's schedule, due out at 2 p.m. CDT. Weather continues to be closely followed with warm temperatures giving help to this year's late-planted crops. Traders will also be interested in any comments leading up to the October trade meeting with China. Weather Friday will feature showers and thunderstorms in the central and northern Midwest, far northern and southwestern Plains, and the Texas coastal bend into the Delta. Other crop areas will be dry. Temperatures remain well above normal with no freeze threat through the next 10 days.
| Rural Advocate News | Thursday September 19, 2019 |
African Swine Fever Shows Up in South Korea South Korea is now the ninth Asian country to find itself positive for African Swine Fever. The pigs that tested positive for the disease were located near the border with North Korea, which has been ASF positive since May. The South Korean agriculture minister says the country’s first case of the highly-contagious disease was confirmed on Tuesday. Officials ran tests on five pigs that had died on a farm just miles south of the North Korean border. The South Korean government is making a stronger effort to disinfect farms and transport vehicles. The government also ordered a 48-hour standstill on all pig farms, slaughterhouses, and feed mills across the country to help prevent the disease from spreading further. South Korea has about 6,000 farms that produce more than 11 million pigs. The country doesn’t import any pork products or live pigs from China due to the severe outbreak of ASF inside that country. South Korea mainly imports from the United States and Germany. Pork imports account for about a third of the country’s total pork supply. ********************************************************************************************** Lawmakers Want India’s Trade Privileges Restored Reuters says 44 members of Congress are asking U.S. Trade Representative Robert Lighthizer to restore trade concessions to India. They say the U.S. withdrawal of that trade privilege has led to retaliatory tariffs, which hurt the U.S. ag industry. Back in June, the United States ended its preferential trade treatment for India. The Generalized System of Preferences Program allowed India to send up to $5.6 billion worth of imports into the United States duty-free. India retaliated with higher tariffs on 28 U.S. products, including almonds, apples, and walnuts. The letter from the U.S. lawmakers to Lighthizer says a lot of American jobs depend on trade between India and the United States. After President Trump decided to remove India from trade privileges, American and Indian trade negotiators met in July. However, neither side made much progress on the issue of tariffs and other protectionist measures imposed by each side. The U.S. and India resumed trade talks after meetings on the sidelines of the G20 summit in June and agreed to take steps to deepen the two countries’ relationship. ********************************************************************************************** NCBA Announces Woodall as New CEO The Executive Committee of the National Cattlemen’s Beef Association says Colin Woodall will serve as the group’s new Chief Executive Officer. Woodall was named to the post this week after an extensive national search. He most recently was the Vice President of Government Affairs and managed NCBA’s efforts in Washington, D.C., for more than ten years. He first joined NCBA in 2004 and was instrumental in ensuring the interests of NCBA members and the beef community were well-represented in DC. “Colin has served NCBA members for 15 years, and in that time, he’s done a great deal for beef producers everywhere,” says NCBA President Jennifer Houston. “Much of his work and many of the victories registered by NCBA in Washington are the result of his ability to build coalitions and bring people together.” Ethan Lane was chosen to replace Woodall as the Vice President of Government Affairs. Most recently, Lane was the Executive Director of the Public Lands Council and NCBA Federal Lands. Houston says Lane has been a “driving force in many of NCBA’s most important policy wins.” ********************************************************************************************** Farmers and Ranchers Launch Pro-Green New Deal Coalition The U.S. Farmers and Ranchers for a Green New Deal coalition held a press conference on Capitol Hill Wednesday, along with a handful of Democrats from the House of Representatives. Sherri Dugger is an Indiana farmer who co-chairs the new coalition. She says a lot of the farmers that she talks to every day don’t understand what the Green New Deal is about. “I’m here to say we need to be involved in this discussion and we need to be at the table to have our voices heard,” she says. The coalition delivered a letter to Congress that calls for farming to have a key place in meeting the goals of the Green New Deal, which seeks to get to net-zero emissions between 2030-2050. The coalition says the U.S. economy needs to move away from fossil fuels and transition “toward family farm-based organic and regenerative farming.” The group also favors land-use practices that improve soil health and draws down and sequesters carbon. The coalition’s announcement this week is timed to coincide with the global Climate Strike event on Friday. ********************************************************************************************** Organic Farmers Association Opposes Genetic Engineering Earlier this week, the Organic Farmers Association delivered a letter to USDA in response to a statement made by Undersecretary Greg Ibach (EYE-baw). The Undersecretary for Marketing and Regulatory Programs recently spoke about possibly opening up a dialogue about gene-editing in organic agriculture. The letter speaking against the idea was signed by 79 organic farm organizations. It strongly opposes any form of genetic engineering into the organic standard and expressed opposition against the possibility of including it. Instead, the OFA is asking the USDA to build the organic market by focusing on building healthy soil and addressing the core issues that affect the domestic organic market. Kate Mendenhall, Director of the Organic Farmers Association, says introducing a dialogue on genetic engineering would be a “major distraction” within the industry. “We have crucial issues in organic agriculture that need the USDA’s full attention, such as stopping organic import fraud, closing certification loopholes, and enforcing current organic standards fairly and equitably,” Mendenhall says. ********************************************************************************************* Farm Bureau Wants USDA to End NRCS Abuses Farmers and ranchers are being denied due process as part of an abuse of discretion by officials from the Natural Resources Conservation Service. That comes straight from a scathing ruling by the Seventh Circuit’s U.S. Court of Appeals. The ruling is highlighted in a letter sent from the American Farm Bureau Federation to Ag Secretary Sonny Perdue asking him to enact much-needed reforms in the agency. The letter focuses on the case of an Indiana farm owned by David and Rita Boucher (BOW-cher). The battle between the Boucher family and the NRCS has gone on for 17 years. The Bouchers removed nine trees on 2.8 acres the agency declared a wetland, and the NRCS demanded they plant 300 trees per acre as compensation. The court found that the NRCS wrongly accused the Bouchers of harming a non-existent wetland on their property. The NRCS made no effort to correct the decision, even after the accusations were proven to be groundless. The Farm Bureau letter notes that the Bouchers aren’t the only victims of regulatory abuse. AFBF is asking Secretary Perdue to accept the Seventh Circuit’s decision and compensate the family for costs incurred during the battle against the government.
| Rural Advocate News | Thursday September 19, 2019 |
Washington Insider: Trade Deal With Japan The administration has been celebrating a new trade deal with Japan for some time, and Bloomberg is reporting this week that the deal will be formally announced this month, according to White House economic adviser Larry Kudlow. President Donald Trump and Japanese Prime Minister Shinzo Abe are scheduled to hold a one-on-one meeting Sept. 25 during the UN General Assembly in New York, Kudlow said Tuesday. “There just might be an announcement at the United Nations,” Kudlow told the U.S.-Japan Business Conference in Washington. “You can never tell, but I’m an optimist.” On Monday, President Donald Trump said that his administration had struck a partial trade accord with Japan on tariff barriers and digital trade. He says a formal agreement is expected in the “coming weeks.” The president, however, didn’t make clear whether he’d end the threat of slapping steep auto tariffs on Japan – a key reason that Tokyo wanted to negotiate with the U.S. from the outset of talks that began last year, Bloomberg says. Japanese Foreign Minister Toshimitsu Motegi, the country’s point man for the talks, said on Tuesday that Tokyo wanted the Trump administration to end the threat of new auto tariffs before agreeing to a final trade deal. “We are aware of the internal process that is going on in the U.S. and the president’s notice of the U.S.-Japan trade negotiations,” Motegi told reporters in Tokyo. The President announced the initial agreement in a notice to Congress, though he doesn’t require their approval to implement the deal. U.S. Chamber of Commerce Chief Executive Officer Thomas Donohue, speaking at the same event as Kudlow, said business leaders are urging the administration to keep its focus on securing a “comprehensive high-standard trade agreement with Japan in the near future.” “We need to make sure this initial package is a step in that direction,” said Donohue. “A comprehensive trade deal with Japan will provide some badly needed predictability – not only with the U.S. and Japan, but for our trade allies.” On the prospects of a U.S.-China trade deal, Kudlow said the mood has turned more optimistic. “There’s a little music in the air, which is not always so but right now, we should enjoy the day,” Kudlow said. U.S.-China trade deputies are meeting today and tomorrow in Washington and trade principals from the two countries will meet in mid-October to continue talks, Kudlow said. However, in the midst of positive news about the expected deal, Bloomberg said that U.S. rice growers won’t get increased sales under the current terms of the expected deal. While there are still details to be finalized, Bloomberg reported that there is not expected to be any expansion of Japan’s quotas for U.S.-grown rice. U.S. producers hope the issue will be dealt with in the second phase of negotiations between the two countries, Bloomberg said. The report also cautioned that it is unclear whether or when Trump and Abe will continue talks given that any trade deal in Japan has to be approved by the parliament and the Trump administration is running out of time before the 2020 presidential election. Japan is a key export market for U.S. rice farmers, who have been under pressure since the Asian nation signed agreements with other countries included in the revised 11-member Trans-Pacific Partnership that the administration ditched early in its tenure. U.S. Agriculture Secretary Sonny Perdue had suggested the White House may make a concession on rice, which is “sort of a cultural issue in Japan,” local media have reported. “Although we are glad to see the bilateral agreement between the U.S. and Japan, we were disappointed to see that U.S. rice was not included,” Stuart Hoetger, a rice trader and manager of Pinnacle Rice Coop in Chico, California said. Japan is required to import 682,000 tons of rice under a WTO commitment with the U.S. typically making up about half of that amount, according to USA Rice. Since Japan signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership there’s been more competition from Australian producers, the industry group said. Chris Crutchfield, president of rice miller and marketer American Commodity Company LLC in Williams, California, said the U.S. industry wants not only more volume but better quality access to the Japanese market. Much of the U.S. rice going to Japan is auctioned by the government and used to make noodles, beer or sake, with only a small amount sold as table rice. American rice should be allowed to be auctioned directly to private buyers and marked as being grown in the U.S. “We still believe the administration is going to get us something better than we currently have,” Crutchfield said. So, we will see. The administration is looking to this agreement, along with similar ones with other important markets to damp down farmer resentments over the abandonment of the Trans Pacific deal. However, those pressures likely will depend heavily on how successful the next round of talks with China prove to be – negotiations producers certainly will watch closely as they take place, Washington Insider believes.
| Rural Advocate News | Thursday September 19, 2019 |
Sen. Hoeven Calls On House To Support Payments To Farmers Senate Appropriations Committee Chairman John Hoeven, R-N.D., said the House should support farmers and ranchers, and ensure Market Facilitation Program (MFP) payments are not delayed. In a letter Tuesday, Hoeven led Republican members of the Senate Appropriations Committee in pressing House Speaker Nancy Pelosi, D., Calif., and House Appropriations Committee Chair Nita Lowey, D., N.Y., to support the nation’s farmers and ranchers and ensure that Market Facilitation Program (MFP) payments for producers are not blocked or delayed in the House of Representatives’ continuing resolution (CR). The Senate GOP group urged the House to reimburse the CCC, which is routinely supported by Congress, to ensure producers have access to much-needed agriculture assistance. “Our nation’s farmers and ranchers badly need the MFP committed to them by the President, using the legal authority that we in Congress provided. For many of our producers, MFP will be the difference between continuing the family tradition or being denied the credit necessary to farm and ranch for another year,” the letter said. DTN reported late Wednesday that House Agriculture Committee Chairman Collin Peterson, D-Minn., said he had received assurances the Commodity Credit Corp. funds will be in the continuing resolution.
| Rural Advocate News | Thursday September 19, 2019 |
Trump Again Talks Potential For US-China Deal, Or Maybe Not President Donald Trump told reporters en route from New Mexico to California that the U.S. and China could ink a trade deal soon, or it may still wait until after the 2020 elections. "I think there will be a deal maybe soon, maybe before the election, or one day after the election. And if it is after the election, it will be a deal like you have never seen, it will be the greatest deal ever and China knows that," Trump said. As for the elections, Trump stated China thinks he will win in November 2020. "China thinks I am going to win so easily and they are concerned because I told them: 'If it's after the election, it's going to be far worse than what it is right now.' I told them that. Would they like to see somebody else win? Absolutely," Trump added. China's trade and economic officials arrived in Washington Wednesday for talks Thursday and Friday at the deputy level.
| Rural Advocate News | Thursday September 19, 2019 |
Thursday Watch List Markets Weekly jobless claims and existing home sales are a few of the economic reports out on Thursday morning. We'll watch for any macro market response to the 25-basis-point cut in interest rates by the Fed on Wednesday. We will also be watching for any news regarding the next U.S.-China trade negotiation, which begins on Thursday. Weather Scattered thunderstorms that developed in the western Midwest overnight will linger this morning before diminishing. Heavy rain may mean local flooding due to this activity. A few scattered showers in the northern part of the central Plains region and the western areas of the Canadian Prairies Thursday or Thursday night. Tropical depression Imelda will continue to cause locally heavy rain as it moves north over east Texas with rain also extending into western Louisiana. Little elsewhere in the key U.S. and Canada growing areas Thursday. Temperatures average above normal through key growing areas of the U.S. and Canada today, although it has turned cooler through eastern areas and it is also cooler in western areas.
| Rural Advocate News | Wednesday September 18, 2019 |
White House Sends Formal Announcement of Agreement with Japan The White House has notified Congress it will sign a trade agreement with Japan. President Donald Trump notified lawmakers he will enter an agreement on tariffs and digital trade with Japan, as the two sides wrap up the talks still this month. The White House published the notice Monday evening. Trump told lawmakers he is “pleased to report that my administration has reached an initial trade agreement.” The agreement is expected to be signed along the sidelines of the United Nations General Assembly in New York this month. The agreement does not need approval from Congress and can go into effect immediately. The agreement will mostly lower tariffs on U.S. ag products, to levels granted to other exporters to Japan in the Comprehensive and Progress Agreement for Trans-Pacific Partnership. The lower tariffs allow U.S. farmers to better compete in the Japanese market. Top U.S. agricultural exports to Japan currently include beef, corn, pork, soybeans and wheat, totally $13 billion last year. ************************************************************************************* Trump Backing Plan to Increase Biofuels Production President Donald Trump will soon unveil a biofuel plan that farm groups are hopeful will increase demand for biofuels production. The President has tentatively approved the plan that will increase biofuel blending requirements, but the administration has not yet publicly announced the plan. Iowa Senator Chuck Grassley said Tuesday the announcement is coming, and will be a “win-win” for farmers. However, Grassley is unsure when the administration will announce the plan. Reuters says the plan requires the Environmental Protection Agency calculate a three-year rolling average of total biofuels gallons exempted from the mandates under its Small Refinery Exemption program and add that figure to its annual biofuel blending quotas each year. The administration recently granted 31 waivers to exclude refineries from the RFS blending requirements. Trump was planned to meet with oil industry executives earlier this week, as well. Grassley says Trump “listened to Iowans” who spoke out against the small refinery waivers. President Trump ordered a review of the waivers in June. ************************************************************************************* Saudi Attacks Represents Opportunity for Biofuels Drone attacks Saturday in Saudi Arabia that destroyed oil fields show diversification, which includes biofuels, could curb market volatility, according to the Renewable Fuels Association. RFA President Geoff Cooper says the United States imported 2.8 billion barrels of crude oil last year, equivalent to 45 percent of the oil processed by U.S. refineries. $18 billion flowed out of the U.S. economy to Saudi Arabia in return for 330 million barrels of petroleum. However, U.S. farmers helped produce more than 380 million barrels of “lower-cost, cleaner-burning renewable fuel last year-more barrels than we imported from Saudi Arabia.” Cooper says the United States cannot “simply frack its way to energy independence,” in his call to increase biofuels use. Cooper says with enforcement of the Renewable Fuel Standard, removal of regulatory barriers, and a rapid transition to 15 percent ethanol blends nationwide, U.S. ethanol producers could quickly ramp up production and help fill the void in the global liquid fuel supply caused by the Saudi oil attacks. ************************************************************************************* Lawmakers Seek Mississippi River Disaster Funds Representatives from Minnesota and Wisconsin are pushing for funds to allow the Army Corps of Engineers to address issues stemming from Mississippi River flooding this year. Democrat Representatives Ron Kind of Wisconsin, and Angie Craig and Betty McCollum representing Minnesota, sent a letter to the Office of Management and Budget pushing for the distribution of $100 million for flood repairs. The funds were included in the Additional Supplemental Appropriations for Disaster Relief Act, and were signed into law by President Trump in June 2019. Those funds have not yet been disbursed so the Army Corps can do their jobs. Right now, the lawmakers say the immediate concern remains keeping the Mississippi River operational for commercial use, which requires additional dredging because of excess sediment build-up this spring. The river is responsible for one-sixth of the nation’s intercity cargo and 25 percent of foreign exports. The letter states the lawmakers urge the Trump Administration “to act swiftly in allocating long-term funding to reinstate emergency dredging operations.” ************************************************************************************* USDA Modernizes Swine Slaughter Inspection The Department of Agriculture Tuesday announced a final rule to modernize swine slaughter inspection. For the first time in more than five decades, USDA’s Food Safety and Inspection Service is modernizing inspection at market hog slaughter establishments with a goal of protecting public health while allowing for food safety innovations, according to USDA. Agriculture Secretary Sonny Perdue says the final rule “allows us to ensure food safety while eliminating outdated rules.” National Pork Producers Council President David Herring says the new inspection system “codifies the advancements we have made into law, reflecting a 21st century industry,” and ensures “a safe supply of wholesome American pork.” In the final rule, FSIS amends the regulations to require all swine slaughter establishments to develop written sanitary dressing plans and implement microbial sampling to monitor process control for pathogens that can cause foodborne illness. The final rule also allows market hog establishments to choose if they will operate under the rule or continue to operate under traditional inspection. ************************************************************************************* Peterson, Others, Establish 4-H Congressional Caucus House Agriculture Chairman Collin Peterson, a Minnesota Democrat, this week announced the bipartisan 4-H Congressional Congress. Joining Peterson is Republican Representatives Cathy McMorris Rodgers of Washington and Jeff Fortenberry of Nebraska, along with Democrat Henry Cueller of Texas. Peterson, saying he was “a 4-H kid myself,” says he looks forward to growing the caucus “so we can help ensure the next generation of young leaders have access to 4-H experiences that will help them succeed." 4-H is America's largest youth development organization, empowering youth through programs and experiences that develop critical life skills and preparing them for life today and a career tomorrow. Thousands of 4-H professionals and educators, as well as 500,000 volunteers serve nearly six million youth in every county in the United States. National 4-H Council president and CEO Jennifer Sirangelo welcomed the caucus, saying “Their support ensures life-changing 4-H experiences are available to young people in rural, urban and suburban communities throughout America.”
| Rural Advocate News | Wednesday September 18, 2019 |
Washington Insider: New Tariffs for EU Luxury Items The question of what might be next in the ongoing global trade wars is increasingly the focus of urban media these days. For example, Bloomberg is reporting this week that at almost the same moment as the U.S. and China attempt to resume trade talks some of Europe’s top luxury brands are being targeted in President Trump’s latest tariff salvo. The new development reflects a decision by a World Trade Organization dispute-settlement panel that ruled Friday that the U.S. can legally impose tariffs on an array of European exports in retaliation for the bloc’s illegal aid to Airbus, SE. The WTO is expected to publicly circulate a report by month’s end that will allow new U.S. duties on a range of goods worth $5 billion to $7 billion per year. Shares of French luxury conglomerate LVMH fell as much as 4.4% on Monday in Paris while Airbus shares fell as much as 5.4%. Continuing political turmoil in Hong Kong and a slowing Chinese economy have also weighed on European fashion and drinks companies. Washington’s formal response is expected within days after the WTO’s green light for retaliation. The U.S. has identified possible targets – with tariffs potentially as high as 100% – on a list of goods with a total export value of $25 billion a year. Though the most valuable items on the U.S. list are exports of European aircraft and parts, the tariffs could also hit products made by Europe’s most recognized high-end brands. The U.S. market for luxury goods is among the top destinations for European companies where the U.S. accounted for perhaps a quarter of their total global sales last year. American shoppers bought 11.2 billion euros worth of goods from LVMH in 2018, Bloomberg said. New tariffs will increase costs that will undoubtedly be passed on to U.S. consumers, said Luca Marotta, the CFO of Paris-Based Remy Cointreau SA, which produces Remy Martin cognac, Cointreau, Passoa and Mount Gay rum. “If the tariff increase happens, I repeat myself, we will increase prices at the same moment,” Marotta said. The administration’s planned EU tariffs are unusual in one sense because, unlike the trade war it started against China, the U.S. will be applying duties explicitly authorized by the WTO, an organization it has threatened to withdraw from if it doesn’t reform. The dispute between Toulouse, France-based Airbus and Chicago-based Boeing Co. encapsulates a criticism from Trump and others that the WTO is a slow-moving bureaucracy. The Airbus case, for example, has taken about 15 years to resolve. European beverage producers are already reeling from the uncertainty stemming from repeated U.S. threats to slap new tariffs on wine, liquor and other alcohol, Bloomberg said. It notes that the U.S. is currently evaluating whether to penalize French wine and other goods in response to France’s tax on digital companies like Amazon.com Inc., Facebook Inc., and Alphabet Inc.’s Google. Bloomberg notes that the impact of new U.S. tariffs could have an unwelcome effect on Scotch whisky producers, which are already girding for the fallout of a potentially messy no-deal Brexit. The EU exported $2.1 billion worth of Irish and Scotch whiskeys to the U.S. in 2018, Bloomberg said. Many U.S. exporters oppose the administration’s proposed tariffs which they say could boomerang and jeopardize thousands of American jobs. Bloomberg notes that U.S. whiskey producers have already become collateral damage from the administration’s steel and aluminum tariffs – which led to EU retaliation and a 25% tariff on U.S. bourbon and whiskey. “Depending on the level of tariffs imposed on EU spirits and wine, we estimate it could negatively impact U.S. businesses, leading up to a loss of jobs from 11,200 to even 78,600 jobs across the United States,” said Chris Swonger, the president and CEO of the Distilled Spirits Council. There are two ways the EU can avoid new tariffs from the long-running aircraft dispute with the U.S.: by ending its illegal subsidies for Airbus, or reaching a settlement agreement. Though U.S. Trade Representative Robert Lighthizer and the current European Trade Commissioner Cecilia Malmstrom have both welcomed the idea of negotiating a settlement, talks to resolve the issue haven’t begun. Also, such negotiations could become more difficult after Malmstrom cedes her post on Nov. 1 to Phil Hogan, a hard-nosed Irish trade negotiator who’s pledged to take a more pugnacious approach to EU-U.S. trade relations and recently threatened that “we are going to do everything we possibly can to get Trump to see the error of his ways.” So, we will see. While U.S. economic anxiety continues to fuel market uncertainty, and the administration is working to open both European and Asian markets, it is depending increasingly on expanding interventions to offset negative economic effects—a strategy that is seen as increasingly risky in some quarters, and which should be watched closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday September 18, 2019 |
White House Notifies Congress on US-Japan Trade Deal The White House formally notified Congress it plans a trade agreement with Japan on tariffs and an executive agreement on digital trade. In a September 16 notice to Congress, Trump again mentioned the initial accord and said the U.S. would be entering an “executive agreement” with Japan on digital trade, without providing details. The communication cites section 103(a) of the legislation, which gives the president the authority to do so as long as the tariff is no higher than five percent. Japanese Foreign Minister Toshimitsu Motegi says Tokyo wants to stymie the threat of new auto tariffs before agreeing to a final trade deal with the U.S. and is seeking confirmation on the position. Motegi, Japan’s point person with U.S. on trade negotiations, told reporters in Tokyo that there is consideration of language covering car tariffs. Expectations are still for the accord to be inked yet this month.
| Rural Advocate News | Wednesday September 18, 2019 |
US-China Deputy-Level Trade Talks Set For Thursday/Friday Deputy-level trade talks between the U.S. and China will start on Thursday in Washington, according to a Reuters report quoting the Office of the U.S. Trade Representative (USTR). On Monday, U.S. Chamber of Commerce chief Thomas Donohue revealed U.S. Trade Representative Robert Lighthizer indicated there are staff-level meetings between Chinese and U.S. negotiators on Friday, with senior negotiators to meet in the ensuing week or week and a half. The Chinese news agency Xinhua said China’s Finance Vice Minister Liao Min will lead the Chinese delegation for the thirteenth round of talks, departing for the U.S. on Wednesday. He will be accompanied by Vice Minister of Commerce Wang Shouwen. Early October continues to be signaled as the expected time for high-level talks between the U.S. and China and that could depend heavily on how the deputy-level talks this week unfold.
| Rural Advocate News | Wednesday September 18, 2019 |
Wednesday Watch List Markets The only report scheduled for Tuesday is U.S. Industrial Production in August, set for 8:15 a.m. CDT. Weather, trade-related news and after this weekend, news about the restoration of Saudi Arabia's oil facilities are all topics of current interest. Weather Dry conditions will cover all major crop areas Tuesday. Conditions will be very warm to hot, favoring crop development along with early harvest.
| Rural Advocate News | Tuesday September 17, 2019 |
Trump Administration Shows Flexibility in USMCA Proposal The Trump administration has offered Democrats “significant flexibility” regarding demands for the U.S.-Mexico-Canada Agreement. The counterproposal sent to House of Representative leadership last week addresses concerns raised by Democrats, according to Politico. The proposal from U.S. Trade Representative Robert Lighthizer offers a fix to concerns raised on how disputes between governments are resolved. Additionally, the proposal addresses labor, environmental and pharmaceutical concerns. The counterproposal is increasing optimism the agreement can be finished yet this year. Trump administration officials have said they expect the agreement can be passed by Congress within the next two months, although lawmakers have a full plate to tackle this fall. Farm groups and House Agriculture Committee leaders rallied outside the capitol last week in support of the agreement. This spring, the American Farm Bureau Federation estimated the agreement could increase U.S. agriculture exports by $2.2 billion. USMCA also changes sanitary and phytosanitary standards, biotech rules and other provision. Mexico has already ratified the agreement and Canada is in the process of finalizing the agreement. ************************************************************************************* Oil Markets Headed for Volatility Following Saudi Attacks Expect volatility in oil markets following the weekend attacks in Saudi Arabia. Jim Bower of Bower Trading says volatility “is going to heighten tremendously” over the next few weeks because of the attack. Bower says the drones had a cost of approximately $15,000 and suggested “oil facilities can and will receive further attacks in the future,” because its “simply too easy to do.” The facility attacked by drones and reportedly cruise missiles over the weekend produces roughly six percent of the world’s oil supply. The U.S. Energy Department has said it is willing to release oil from the strategic oil reserves if needed. Oil prices Monday briefly spiked 19 percent, the biggest spike since the 1990-1991 invasion of Kuwait by Iraq. The attacks also represent the largest disruption of maximum daily supply loss in history. Officials at GasBuddy, a crowdsourced, real-time fuel price reporter, predict prices will increase 10-25 cents per gallon. Additionally, prices could increase higher depending on how long it takes to restore production at the attacked facilities. ************************************************************************************* Farm Credit Service Outlines Quarterly System Conditions A quarterly review of the Farm Credit System shows reported steady earnings and higher capital, but a decline in loan quality, so far, in 2019. The Farm Credit Administration received the report last week that outlines economic issues affecting agriculture, with an update on the financial condition and performance of the Farm Credit System. Although the levels of portfolio credit risk are acceptable, they are rising, and the increase “underscores the significant operating challenges facing System borrowers.” Overall, the System remains financially safe, strongly capitalized, and well-positioned to support agricultural producers, according to the report. Additionally, land values generally have remained stable, supported by the limited supply of farmland for sale. Farm sector real estate debt has been rising for the past several years and is approaching the historical 10-year average. Also, total farm debt relative to income in 2019 is high, but the Market Facilitation Program has slowed its advance. The report says the MFP payments represent considerable support for the U.S. farm sector. ************************************************************************************* Japan to Eliminate Tariffs on U.S. Wine Japan will eliminate tariffs on U.S. wine imports as part of a trade agreement announced between the U.S. and Japan. Reuters says Japan will eliminate the tariffs on U.S. wine within five to seven years after the trade agreement goes into effect. Japan currently taxes wine at 15 percent per liter, and the trade agreement would cut the tariff by roughly 13 percent. Leaders of the two nations are expected to sign the agreement on the sidelines of the U.N. General Assembly meeting later this month. The agreement, welcomed by agriculture, also gradually lowers tariffs on U.S. beef exports to Japan, from 38 percent, to nine percent by 2033. Many of the bilateral agreement provisions match those included in the Trans-Pacific Partnership the U.S. backed out of when President Donald Trump took office. The remaining nations enacted the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The bilateral agreement with Japan should level the playing field for U.S. agriculture and its competitors, provide increased market opportunity. ************************************************************************************* USDA, Trump, Recognize Farm Safety Week President Donald Trump has proclaimed this week as National Farm Safety and Health Week. Trump signed the proclamation Friday, designating the week as September 15 -21, 2019. The theme for this year's National Farm Safety and Health Week is “Shift Farm Safety into High Gear” as a reminder that it is everyone’s responsibility to prioritize safety on the farm and rural roadway. USDA says this week is an opportunity to spread awareness of the inherent risks associated with work in the agriculture sector and commit to improved practices that advance health and safety. Agriculture Secretary Sonny Perdue says promoting farm safety will “help our American agriculture workforce,” adding “farming is not always the safest profession and it is our responsibility to continue to improve workplace safety. According to the Bureau of Labor Statistics, 581 workers in agriculture and related industries died from a work-related injury in 2017, making agriculture one of the most dangerous professions in the United States. ************************************************************************************* NCGA: Farmers Must Play a Role in Reducing Greenhouse Gases Efforts throughout society, and virtually every industry, to cut greenhouse gases are underway and agriculture is no exception, according to the National Corn Growers Association. Fortunately, NCGA’s Stewardship and Sustainability Director Rachel Orf says, “we are working in the right direction.” Throughout the Ag supply chain, from conservation groups to the largest retailers, Orf says there is solid agreement that the effort needs to be driven by science, adding “if it doesn’t work for farmer’s it doesn’t work at all.” Orf attended a meeting hosted by Field to Market last week in Washington, D.C. with the objective of better understanding climate change risk facing the ag value chain, including retailers, conservation groups, farmers, agribusiness. The effort began last fall with the goal of exploring collaborative actions that can deliver benefits for farmers, consumers and the planet. While agriculture has become increasingly efficient, relying on fewer inputs to produce more, NCGA’s partnership with Field to Market, is fostering collective action to address the significant challenges ahead in meeting increased global demand in a sustainable manner.
| Rural Advocate News | Tuesday September 17, 2019 |
Washington Insider: Senators Struggle Over Spending as Shutdown Looms As if there weren’t enough to worry about amid concerns over the economy and ongoing trade clashes, there is a report from The Hill this week that government funding talks in the Senate are off to “a rough start.” The report notes that there are only 10 working days to go until the shutdown deadline. This is an important problem because it “throws into question if senators will be able to get any of the fiscal 2020 bills through the chamber this month, a setback for Republicans who wanted to clear a major package before October.” Of course, there are still optimists. For example, Senate Appropriations Committee Chairman Richard Shelby, R-Ala., said he still wants to bring bills to the Senate floor for a vote but warned that lawmakers need to “negotiate the terrain.” “We’ve been down that road before,” he said when asked how the funding talks get unstuck. “There’s got to be a resolution to it.” However, the darker view is that the partisan breakdown has left lawmakers visibly flummoxed about how to resolve the impasse, The Hill says. Senate Majority Leader Mitch McConnell, R-Ky., warned against getting “bogged down in too many foxholes… I’m praying for Chairman Shelby and ranking member Patrick Leahy, D-Vt., to make the curtains part here so we can figure a way to move forward,” said McConnell, who is also a member of the Appropriations Committee. But The Hill thinks that a quick resolution is “nowhere in sight” with senators at a stalemate over major provisions, including the top-line spending figures for each of the bills, known as 302(b)s. The Senate Appropriations Committee passed its top-line figures, a mammoth fiscal 2020 defense bill and an energy and water funding bill, on Thursday. But neither the 302(b)s nor the defense bill currently have the votes to pass the Senate where they would need the support of at least seven Democrats if every Republican voted for them. Democrats are taking issue with the top-line figures, which break down how much money each bill will get, because they believe Republicans are padding them with extra money that could be shifted to homeland security. And they balked at supporting the Pentagon spending bill after Republicans rejected an amendment that would have prevented the President from shifting funds from the bill toward the border wall without congressional sign off. Sen. Dick Durbin, D-Ill., the Senate minority whip and top Democrat on the Appropriations Defense Subcommittee, warned that the spending bill for the Pentagon is stuck until they resolve the fight over top-line spending figures. Republicans could bring the bills to the floor anyway just to make Democrats vote in what would amount to a messaging fight as they did in 2016. Democrats are making it clear they won’t provide Republicans with their votes unless they sit down and renegotiate the spending legislation. Sen. Chris Murphy, D-Conn., when asked if any spending bills could pass on the floor, responded, “Absolutely not.” “You had every member of the Democratic caucus voting 'no'” in committee, he said. “I think we've got to renegotiate the allocations” to move forward.” Senate Minority Leader Charles Schumer, D-N.Y., noted that no one wants to resort to a continuing resolution or another government shutdown. “But my Republican colleagues must know that what happens in the next few days and weeks will determine whether we can proceed with a bipartisan appropriations process this fall or not,” he said. There’s more. With the full-year funding bills stuck in limbo, Congress will need to pass a short-term spending bill, known as a continuing resolution, by the end of the month. The House is expected to vote on a bill this week to fund the government until Nov. 21. In addition, major funding fights await both the bill for the departments of Labor, Health and Human Services and Education and funding for the State Department and the Appropriations Committee still has to take up a funding bill for the Department of Veterans Affairs and military construction, which certainly will be controversial because Republicans are expected to try to replace the $3.6 billion the administration redirected to the border wall. And funding for the Department of Homeland Security is considered so controversial that Republican senators say they aren’t sure that they will even bring the bill up. Shelby characterized the spending talks as in “round one.” But asked if he could move DHS funding in his committee, Shelby demurred. “That’s challenging,” he said, before throwing his arms up as he got in an elevator. “Sooner or later we’re going to have to do something.” So, we will see. These last minute spending fights have become much more common in recent years and are very, very hard to control even when there is fairly broad underlying agreement. They are important and should be watched closely by producers as they emerge, Washington Insider believes.
| Rural Advocate News | Tuesday September 17, 2019 |
US Chamber of Commerce Says US/China meeting Friday The U.S. Chamber of Commerce says U.S. deputy-level officials will meet with their Chinese counterparts on Friday. The next meeting of top-level officials will likely occur either later this month or early October. U.S. Trade Representative Robert Lighthizer spoke to state and local business groups Monday in Washington, after which U.S. Chamber of Commerce Chief Executive Officer Thomas Donohue said while “there’s much more work” to be done on a trade deal with China he’s optimistic about passage of the United States-Mexico-Canada Agreement by the end of the year. Donohue said while Lighthizer indicated there’s some movement on China buying U.S. farm products and other issues, getting a complete deal will be “an extraordinary challenge.”
| Rural Advocate News | Tuesday September 17, 2019 |
House Ag Panel Democrats Come Out Against Plan to Impact Farmer Aid The lack of a provision to address funding for the Commodity Credit Corporation (CCC) in a proposed continuing resolution (CR) to keep the government funded through November 21 has raised opposition from House Ag Committee Democratic leaders. The lack of the provision threatens to hold up trade aid payments to farmers. Rep. Filemon Vela, D-Texas, Chairman of the House Agriculture Subcommittee on General Farm Commodities; Jim Costa, D-Calif., Chairman of the Subcommittee on Livestock and Foreign Agriculture; and Collin Peterson, D-Minn., Chairman of House Agriculture Committee are leading efforts to secure the inclusion of language in the CR which would allow USDA to move forward with the recently announced Market Facilitation Program (MFP) payments. “As Members of Congress who represent agricultural communities, we repeatedly hear from farmers in our districts whose livelihoods have been severely impacted by the ongoing trade wars. Although we mutually have concerns with President Trump’s approach to trade negotiations, we refuse to engage in the same tactics that punish our constituents and harm our communities that rely on agriculture. The upcoming CR should include the anomaly requested by USDA that would allow them to access the $30 billion in spending of the Commodity Credit Corporation prior to October 1st to ensure that MFP and farm bill payments continue to go out. We cannot and will not allow our farmers to be used as political pawns.”
| Rural Advocate News | Tuesday September 17, 2019 |
Tuesday Watch List Markets The only report scheduled for Tuesday is U.S. Industrial Production in August, set for 8:15 a.m. CDT. Weather, trade-related news and after this weekend, news about the restoration of Saudi Arabia's oil facilities are all topics of current interest. Weather Dry conditions will cover all major crop areas Tuesday. Conditions will be very warm to hot, favoring crop development along with early harvest.
| Rural Advocate News | Monday September 16, 2019 |
China Lifts Punitive Tariffs on Pork, Soybeans A Chinese state news agency says the country will lift punitive tariffs imposed on U.S. soybeans and pork. Both China and the U.S. have made conciliatory gestures ahead of upcoming negotiations that will hopefully lead to an end to the trade war between the two nations. The Chicago Tribune says China will suspend tariff hikes on soybeans, pork, and some other farm goods. The Chinese Commerce Ministry says Beijing also supports “domestic companies in purchasing a certain amount of U.S. farm produce,” but didn’t give out any specific details. A release from the National Pork Producers Council says, “If media reports are accurate, this is a most welcome development.” The Chinese have placed punitive tariffs of 60 percent on most U.S. pork products, bringing the effective tariff rate for most U.S. pork to 72 percent. NPPC President David Herring says, “U.S. pork exports could singlehandedly make a huge dent in the trade imbalance with China. When you consider that China is the largest producer and consumer of pork in the world, the importance of this market to U.S. pork producers is clear.” ********************************************************************************************** China Buys Soybeans Ahead of Trade Talks Privately run Chinese firms bought at least ten boatloads of U.S. soybeans late last week. Reuters says that was the most significant Chinese purchase since June. The move comes ahead of high-level talks next month which both sides hope will end a trade war that’s gone on for over a year. The purchases totaled more than 600,000 tons and will be shipped out from export terminals in the Northwest U.S. between October and December. Reuters says the purchases are hopefully another indication that trade tensions between the two countries are easing. Talks hit another low point last month when China suspended all U.S. farm product purchases in response to threats by President Trump to impose more tariffs on Chinese imports. Jack Scoville, Vice President of Price Futures Group in Chicago says, “I’m impressed that the day they allow their commercial interests to buy from the United States, we’ve got this much sold immediately. Clearly, they’re trying to show what they can do if we get back to a normal trade relationship.” Also, late last week, the USDA reported China buying 10,878 tons of U.S. pork in the week ending September 5, the most in a single week since May. ********************************************************************************************** Farm Leaders, Congressmen Rally for USMCA Farm group leaders and members of Congress gathered at the National Mall in Washington, D.C., last week to rally for approving the U.S.-Mexico-Canada agreement on trade. The rally happened in front of a 25-foot RV decorated with pro-USMCA signs that had traveled 20,000 miles to 30 states and made 100 stops to promote approval during a “Motorcade for Trade” event sponsored by Farmers for Free Trade. The Hagstrom Report says House Ag Committee Chair Collin Peterson of Minnesota was in attendance. He’s already deviated from his personal history of opposition to trade agreements by endorsing the USMCA months ago. Peterson told folks attending the rally to be patient, but to also expect a vote sometime this fall. While U.S. Trade Rep Robert Lighthizer has sent his proposals to address Democrat concerns to House leadership, Peterson says he hasn’t seen them yet. Farmer leaders also repeated earlier statements that USMCA will provide farmers with new market access to Canada and Mexico while keeping the zero-tariff platform they rely on. Farmers for Free Trade also held a roundtable discussion last week for ag groups to discuss the impact of the USMCA on each sector. ********************************************************************************************** Top Democrat Attempting to Block Trade Aid House Appropriations Committee Chair Nita Lowey of New York is proposing to block a White House request regarding its farm trade aid program. A Washington Post review of the draft legislation says it would potentially mean trouble for President Trump’s ability to direct aid payments to thousands of American farmers. A key Republican lawmaker says the Democrat’s move could potentially stall a key bill needed to avoid another government shutdown. The farm bailout is one of several unresolved issues that lawmakers will have to work through to meet a deadline by the end of this month. Up until now, the payments haven’t needed congressional approval. However, the timing of the next round of payments is directly tied to approval from Congress. The USDA is planning to spend about $28 billion in payments over two years. However, the program Trump is using for the payments has a $30 billion spending limit, which they’re expected to hit this year before completing the second round of payments. Republicans have said they won’t support the government funding bill if it leaves the farm payment issue unresolved. ********************************************************************************************** Trump Touts “Progress” on Biofuels Deal President Donald Trump says his administration has made progress on a biofuel reform package after meeting with key farm-state senators late last week. The meetings were part of an ongoing effort to boost ethanol demand to help hard-hit corn farmers. Trump is having a hard time trying to appease two key constituencies, Big Oil and Big Corn, that he hopes will help propel him to reelection in 2020. “I think we had a great meeting on ethanol for the farmers,” Trump said to reporters at the White House last week. “Let’s see what happens.” Politico says despite recent meetings, it appears the White House doesn’t intend to slow down the Environmental Protection Agency’s use of waivers that allow some refiners to ignore ethanol-blending requirements under the Renewable Fuels Standard. It also seems as though the White House won’t offset the volumes expected to be lost to those exemptions in the annual rule. Trump is pushing a plan to add another 500 million gallons of ethanol and 500 million gallons of advanced biofuels to the 2020 blending mandate to appease farmers. ********************************************************************************************* Wisconsin Legislation will Stop Mislabeling of Dairy Products The Wisconsin Dairy Business Association is applauding three state lawmakers for new legislation designed to stop the use of misleading labels on imitation milk and other “dairy” products. The legislation would ban the labeling of products as milk or as a dairy product or ingredient if the food was not made from the milk of a cow, sheep, goat, or other mammals. Tom Crave, DBA President, says, “The plant-based food industry increasingly masquerades its products as real dairy foods. This mislabeling confuses customers who often make judgments about a food’s nutritional value based on its name.” Crave says words do matter. “Milk is milk and cheese is cheese,” he adds. “Customers deserve transparency.” A recent national survey about imitation cheese confirms customer confusion. About one-quarter of customers mistakenly think plant-based products that mimic cheese contain milk. About one-quarter of customers purchase plant-based foods that mimic cheese because they believe them to be low in calories and fat, as well as without additives. The reality is plant-based foods contain a comparable amount of fat and calories and substantially more additives than dairy cheeses.
| Rural Advocate News | Monday September 16, 2019 |
Washington Insider: Reduced Trade Tensions Almost everybody noticed last week after the U.S. delayed the imposition of some tariffs and China announced it is encouraging its companies to buy U.S. farm products including soybeans and pork. The media generally indicated that both the U.S. administration and Chinese leader Xi Jinping are working to lower tensions that are clouding the global economic outlook. For example, Bloomberg said that China needs more pork because it faces shortages that are pushing up prices during a holiday period, “prompting officials to ration sales in some areas.” “The ice is thawing,” said Chua Hak Bin, an economist at Maybank Kim Eng Research Pte., in Singapore. "China’s reciprocity to the U.S. administration’s goodwill gesture will set the stage for more cooperative trade talks.” On the Chinese side, the government faces soaring pork prices that could potentially mar celebrations for the 70th anniversary of the People’s Republic of China’s founding on Oct. 1, Bloomberg said. It hopes to import 2 million tons for the year, some of which would be added to state reserves, the report said. China bought 237,800 metric tons of U.S. pork and variety meats from January through July of this year, according to USDA data, a 51% increase from low 2018 sales to China. Data published by the European Commission on the EU’s pork exports show that during the first half of 2019, EU exports to China grew by 42% compared to the same period in 2019, going from 680,686 metric tons in 2018 to 965,768 metric tons in 2019. The New York Times noted that the news of China’s action came after President Trump delayed the next round of tariff increases on Chinese goods until after trade talks scheduled for early October—and after officials in Washington confirmed China had made its first major purchase of American soybeans in months. China’s move was welcomed by the administration as an effort to help ease tensions ahead of the next round of talks. “The really good part about this is there is some relaxation in the air with China exempting some tariffs. We’ve returned the favor and the negotiations are moving along nicely,” Larry Kudlow, director of the National Economic Council, said on Friday. The increased imports will “only go part of the way to addressing shortages.” The country is likely to see a 10 million ton pork deficit this year, more than the roughly 8 million tons in annual global trade, according to Vice Premier Hu Chunhua. That means the country will need to fill the gap by itself, he said. China halted U.S. farm-product imports in August after trade negotiations deteriorated. Before that, Beijing had given the go-ahead for five companies to buy up to 3 million tons of U.S. soybeans free of retaliatory import tariffs, Bloomberg said. The goods China exempted from additional tariffs this week included pharmaceuticals, lubricant oil, alfalfa, fish meal and pesticides. Further rounds of Chinese exemptions will be announced in due course, the ministry said. The Times also emphasized the negative impacts of the trade fight on some U.S. farmers. It said that the political implications of the trade fight for farmers have been widely acknowledged and came up in Thursday’s Democratic presidential debate. Administration advisers continue to say they will still press China for a “transformative” deal but many are also eager to calm tensions and avoid further tariff increases that might rock equity markets. There has even been talk of “striking an arrangement that would walk back the latest tranche of the administration’s tariffs on $112 billion of Chinese goods, leaving tariffs on at least $250 billion of products in place in return for substantial purchases of soybeans, pork and other products, the Times said — but emphasized that it is far from clear how China would react to such an offer. Friday’s state media reports from China, brief in length and substance, left unclear whether it would be willing to consider roll-backs of tariffs previously placed on American goods. It began to stop imports of American agricultural products a year ago as trade tensions escalated. The trade war, with a rising number of goods being taxed, not only has pushed prices higher for businesses and consumers in China and the United States, but risks a more permanent chill in relations between the two countries, a threat increasingly discussed by producer groups. So, we will see. It now seems that both sides agree that they would benefit from better trade relations. However, these negotiations are fundamentally political and therefore subject to forces that are exceedingly difficult to appraise. It is a debate producers should watch extremely closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Monday September 16, 2019 |
Speaker Pelosi Addresses USMCA Possibilities “It boils down to enforceability... and I think it can be achieved,” House Speaker Nancy Pelosi, D-Calif., said Thursday relative to the U.S.-Mexico-Canada Agreement (USMCA). Meanwhile, House Agriculture Committee Chairman Collin Peterson, D-Minn., said he expected Congress to vote on USMCA within the next one or two months. "Right now, I am optimistic about getting this done," Peterson said during a rally in Washington in favor of the agreement. Democrats are now examining information sent to them by U.S. Trade Representative Robert Lighthizer, sparking more optimism that the issue will be headed for a vote. We continue to expect that a vote in the House will be held, likely in the November-December timeframe and it will be approved.
| Rural Advocate News | Monday September 16, 2019 |
Xinhua Reports US Soybeans, Pork Exempted From Additional Tariffs Markets are abuzz on reports from the Xinhua news that U.S. soybeans and pork will be exempted from additional tariffs. “The Customs Tariff Commission of the State Council will exclude some agricultural products such as soybeans and pork from the additional tariffs on U.S. goods,” Xinhua reported. “China supports domestic companies in purchasing a certain amount of U.S. farm produce in line with the rules of the market and the World Trade Organization, according to sources with the National Development and Reform Commission and the Ministry of Commerce,” the report noted. The news service also noted the move was “after the United States decided to make adjustments to the additional tariffs to be imposed on Chinese goods on October 1.” Plus, the report talked up “high-quality” U.S. farm products. “China has a huge market, and the prospects for importing high-quality U.S. farm produce are broad,” Xinhua said. “China hopes the United States will be true to its word, make progress on its commitments and create favorable conditions for bilateral agricultural cooperation, said sources with the relevant departments of China.” This backs up a Xinhua report Thursday which said the list of 16 U.S. products that would be exempt from additional tariffs was the "first set of U.S. goods to be excluded," with Ministry of Commerce spokesman Gao Feng saying the commission would "continue to work on the exemption process and release subsequent lists in due course," Xinhua said.
| Rural Advocate News | Monday September 16, 2019 |
Monday Watch List Markets Early Monday, new forecasts for the week and any trade news that might have come out over the weekend will be topics of interest. USDA's weekly grain inspections are released at 10 a.m. CDT, followed by the Crop Progress report at 3 p.m. CDT. The percent of corn dented remains widely watched. Weather Dry conditions will be in place over all primary crop areas Monday. Conditions will be very warm to hot. No freeze threat is indicated through the next 10 days.
| Rural Advocate News | Friday September 13, 2019 |
Agriculture Pleased with WOTUS Repeal Agriculture groups Thursday celebrated the Waters of the U.S. repeal by Trump administration as a victory. The rule greatly expanded the EPA’s federal jurisdiction and scope of waterbodies subject to Clean Water Act requirements. Senate Agriculture Chairman Pat Roberts says the action to repeal and replace the 2015 WOTUS rule will “alleviate regulatory burden” on farmers and ranchers. The repeal reverts regulations to those in place before 2015, while the Trump administration works to craft a new rule. The American Farm Bureau Federation called the repeal a victory for farmers and ranchers. AFBF President Zippy Duvall says Farm Bureau will now “work to ensure a fair and reasonable substitute that protects our water and our ability to work and care for the land.” Last month, a U.S. District Court ruled the Environmental Protection Agency must redraft the rule, stating the 2015 rule violated the Clean Water Act, and that the procedures for enacting the WOTUS rule were in violation of the Administrative Procedures Act. ************************************************************************************* USDA Lowers Corn and Soybean Production Estimates The monthly World Agriculture Supply and Demand report released by the Department of Agriculture lowered corn and soybean production. Markets responded closing six to seven cents higher for corn, and soybeans up 26-30 cents Thursday. This month’s corn outlook is for reduced production, lower corn used for ethanol, and slightly higher ending stocks. Corn production is forecast at 13.799 billion bushels, down 102 million from last month on a lower yield forecast, and supplies were lowered, as well. The season-average corn price received by producers is unchanged at $3.60 per bushel. USDA projects Soybean production at 3.6 billion bushels, down 47 million on a lower yield forecast of 47.9 bushels per acre, and soybean supplies are down two percent. Ending stocks are projected at 640 million bushels, down 115 million from last month. The season-average soybean price is forecast at $8.50 per bushel, up ten cents. The wheat supply and demand outlook is unchanged this month. The projected season-average farm price is $4.80 per bushel, down $0.20. ************************************************************************************* Lighthizer Submits USMCA Proposal to House Democrats U.S. Trade Representative Robert Lighthizer has sent the House of Representatives the latest White House proposal for addressing Democrats concerns in the U.S.-Mexico-Canada Agreement. Democrats are now reviewing the proposal, according to Reuters. House leadership holds the key to passing the agreement that replaces the North American Free Trade Agreement. Democrats have argued for stronger labor, environmental and enforcement standards within the trade agreement. While little details have emerged as to how the White House proposes to address those concerns, optimism is growing that Congress can pass the agreement before the end of the year. Ag organization leaders and farm-state lawmakers attended a rally outside the Capitol Thursday morning, in support of USMCA. American Farm Bureau Federation President Zippy Duvall says passing the agreement would “bring certainty to our already-positive trade relationship with our closest neighbors.” The rally included House Ag Chairman Collin Peterson and the committee’s top Republican Mike Conaway. Lighthizer is expected to meet with the House working group on USMCA next week. ************************************************************************************* Organic Trade Association Launches Fraud Prevention Program The Organic Trade Association this week announced the development of three online training courses to bolster its Organic Fraud Prevention Solutions program. The training courses are designed for organic businesses, accredited certifiers and organic inspectors, with one of the courses a pre-requisite for businesses pre-enrolled in the program. The Organic Fraud Prevention Solutions program was launched by the Organic Trade Association earlier this year, and almost four dozen organic businesses have joined. The new anti-fraud courses will analyze where opportunities for crime in the organic supply chain most commonly occur, and offers education on the Organic Fraud Prevention Plan and how to put it into real on-the-job practice. A spokesperson for the Organic Trade Association says the effort “will strengthen our ability to protect against fraud and maintain the integrity of organic.” The three online courses will be available in late 2019 and early 2020. Enrollment and program information is available on the association’s website, OTA.com. ************************************************************************************* FFA Announces Record Student Membership The National FFA Organization announced this week a record-high student membership of 700,170, up from nearly 670,000 in 2018. National FFA Organization CEO Mark Poeschl (Peh-shl) says the membership growth “reflects continued enthusiasm for agriculture as well as agricultural education.” The top six student membership states are Texas, California, Georgia, Oklahoma, Ohio and Missouri. Interest in FFA and agricultural education continues to grow as membership continues to increase. This year, the organization has more than 100,000 Latino members, 45 percent of the membership is female with 52 percent of the membership being male. Females hold more than 50 percent of the leadership positions. FFA chapters can be found in 24 of the 25 largest U.S. cities. The National FFA Organization provides leadership, personal growth and career success training through agricultural education to student members who belong to one of the more than 8,600 local FFA chapters. The organization is also supported by more than eight million alumni and supporters. ************************************************************************************* NASDA Elects North Dakota’s Goehring as President The National Association of State Departments of Agriculture this week elected a new slate of officers for the coming year. North Dakota Agriculture Commissioner Doug Goehring (Gore-ing) will serve as NASDA’s 2019-20 President and will host the 2020 NASDA Annual Meeting in Medora, North Dakota next August. Goehring says, “Now is the time to leverage NASDA’s nonpartisanship to get things accomplished in Washington D.C.” to help struggling farmers and ranchers. Also elected to NASDA’s Board of Directors were Kentucky Commissioner of Agriculture Ryan Quarles as Vice President, and New York Commissioner of Agriculture Richard Ball as Second Vice President. The organization held its annual meeting this week in Albuquerque, New Mexico. A top policy amendment for the group passed during the meeting supports voluntary, incentive-based climate-smart agricultural programs. During the meeting, the organization adopted new climate resiliency policy. California Secretary of Agriculture Karen Ross introduced the policy amendment. The policy asserts that addressing climate resiliency in agriculture requires a comprehensive approach.
| Rural Advocate News | Friday September 13, 2019 |
Washington Insider: War on the Fed and Push for Negative Interest Rates While President Donald Trump’s criticism of the Fed is not exactly news, there is a new wrinkle — he recently urged not only low rates but that the Fed should “get our interest rates down to ZERO, or less,” Bloomberg and others are reporting this week. “We should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term,” the President tweeted. Bloomberg quickly called the idea “flawed” and noted that “while it’s true that the government could sell bonds at lower interest rates than those on much of its outstanding debt, it would have to pay a big premium to buy back and retire some old bonds, effectively negating the financial benefits. Certain mature treasuries, for instance, fetch prices of as high as $1.40 for every $1 of face value.” The report also noted that the current federal funds target rate is already on a track to be lowered following a quarter-point reduction on July 31 — the first cut since the Fed lowered rates effectively to zero in 2008, during the worst financial crisis and economic downturn since the Great Depression. Barrons weekly newsletter published by Dow Jones and Company went into even more detail but agreed that negative rates likely would bring their own problems. Barrons cited industry views that the call for negative rates reflects the view of the self-proclaimed “King of Debt” and thinks the President’s view “that of a highly leveraged property developer…thinking about negative rates from the perspective of a borrower.” It cites especially comments by Paul Ashworth, chief U.S. economist at Capital Economics. He notes that the Fed has been lukewarm at best about such a possibility, “partly because officials know that it could cause outrage among savers and drag the central bank into a political maelstrom.” Money-market funds also could see large-scale outflows which could disrupt short-term funding for businesses, banks, and perhaps even the Treasury. Moreover, the record of negative rates in the euro zone, Sweden, Denmark, Switzerland, and Japan has been mixed, Ashworth continues. While bond yields have fallen below zero, banks been reluctant to impose negative rates on depositors, resulting in a squeeze on their profits. Trump has said that the U.S. deserves to have subzero interest rates since it has “a great currency, power, balance sheet.” In fact, negative interest rates reflect the economic torpor in Europe and Japan. By contrast, U.S. interest rates were at their peak in real terms when it was “Morning in America” in the mid-1980s, Barrons said. Long-term Treasury bonds briefly touched 14% in May 1984 — a full 10 percentage points above inflation. Now, real yields on Treasury inflation-protected securities are just above zero. The 10-year TIPS yields 0.14% while the 30-year TIPS yields 0.56%. After taxes, which are levied annually on the inflation adjustment, those yields already are below zero. Unlike last year, Trump’s Fed bashing now seems unfounded, Barrons thinks — since the bank is already poised to cut its federal-funds target rate at next week’s meeting of the Federal Open Market Committee. The fed-funds futures market puts an 88.8% probability of a cut of 25 basis points then and a 72.3% probability of a further reduction of 25 basis points or more at its December meeting. The Fed also has ended the shrinkage of its balance sheet, the report said. Meanwhile, the stock market has been rallying, with the S&P 500 retaking the 3000 level Wednesday for the first time since July 30. That left the benchmark just 0.82% shy of its record and up 2.54% since the start of the month. The Dow Jones Industrial Average was just 0.81% away from its all-time high. The report concludes, “be careful what you wish for when calling for zero or negative interest rates, Mr. President.” So, we will see. The President appears to have already turned the Fed’s attention toward guarding against negative impacts from trade fights and it will now be important to watch how large that shift proves to be — policies and trends producers should watch closely over the coming weeks, Washington Insider believes.
| Rural Advocate News | Friday September 13, 2019 |
EPA Finalizes Repeal of Obama-Era WOTUS Rule Rollback of the Obama-era Waters of the U.S. (WOTUS) rule was finalized by the Trump administration Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers on Thursday. The Obama-era WOTUS rule expanded Clean Water Act jurisdiction to cover over 60% of bodies of water across the U.S. The rollback will narrow the scope of the CWA to the 1986 standards in place before the 2015 regulation while EPA continues work on a new update to the rule. "With this final repeal, the agencies will implement the pre-2015 regulations, which are currently in place in more than half of the states, informed by applicable agency guidance documents and consistent with Supreme Court decisions and longstanding agency practice," EPA said in a September 12 statement. Repeal of the 2015 rule will be effective 60 days after being published in the Federal Register.
| Rural Advocate News | Friday September 13, 2019 |
Trump Delays Increases in China Tariffs With Talks Set For Next Week Both China and the U.S. are confirming that there will be working-level or deputy-level talks between the two countries next week. That came in the wake of President Donald Trump announcing Wednesday even he will delay for two weeks a tariff rate increase on $250 billion worth of Chinese goods ahead of upcoming trade negotiations. “At the request of the Vice Premier of China, Liu He, and due to the fact that the People's Republic of China will be celebrating their 70th Anniversary.... on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25 percent to 30 percent), from October 1st to October 15th,” Trump said in a pair of tweets. Meanwhile, China’s Commerce Ministry today welcomed the postponement and said Chinese companies had started making price inquiries for U.S. agricultural goods including soybeans and pork, although there were no details on the timing or size of any intended purchases. Beijing suspended purchases of the U.S. products in August. Ministry spokesman Gao Feng said that the possible resumption of agricultural products is not a bargaining chip in trade talks. With top-level talks hoped for in early October, those are expected before October 15 which would open the door to a further postponement of higher U.S. tariffs.
| Rural Advocate News | Friday September 13, 2019 |
Friday Watch List Markets There is little on the economic docket on Friday other than retail sales,. DTN will also be looking for confirmation of a rumored China purchase of 600,000 mt of U.S. soybewans on Thursday and any news regarding the U.S.-Japanese trade accord. Weather Friday will be dry over most crop areas. A few showers will develop in the far southern Plains. Flood issues will continue in the Northern Plains and northern Midwest after heavy rain earlier this week. There is no freeze threat indicated in the next seven days. Meanwhile, extreme heat in the southern and southeastern U.S. remains in effect
| Rural Advocate News | Thursday September 12, 2019 |
China Removes Some Tariffs, Pork, Soybean Tariffs Remain China this week announced tariff exemptions for 16 U.S. products, but not for top agricultural commodities. China’s Minister of Finance says the exemptions will apply to some anti-cancer drugs and lubricants, as well as animal feed ingredients of whey and fish meal. China says the exemptions are an effort to remove tariffs on products not easily sourced from countries other than the United States. The exemptions are valid for one year, expiring in September 2020, and 12 products on the list are eligible for tariff refunds. The exemptions do include products used in piglet feed, difficult to source in large volumes from elsewhere. The exemptions do not include U.S. pork or soybeans, two commodities China has targeted in retaliation to U.S. tariffs. Some analysts view the move as a friendly gesture but don’t see it as a signal that both sides are readying a deal, according to Reuters. The U.S. and China are set to meet next month in Washington, D.C. to continue high-level trade talks. ************************************************************************************* Tariffs Cost U.S. Importers $6.8 Billion in July Trade group Tariffs Hurt the Heartland claims the tariffs enacted by President Donald Trump cost U.S. importers a record $6.8 billion in July. The vast majority were on Chinese goods, though the administration has imposed on other commodities. Michelle Meyer, an economist with Bank of America, says, “The unpredictable nature of the trade will keep businesses, at best, in wait-and-see mode.” Before the trade war with China began, the organization says the U.S. was shipping $1.47 billion more in hardwoods overseas than American companies were importing. However, that surplus shrank last year as the U.S. imposed double-digit tariffs on Chinese goods, and Beijing retaliated. The industry is agricultural but relies on a crop that can take 30 years to mature as opposed to a single growing season. Members of the Hardwood Federation, a Washington-based trade group representing the $210 billion industry, are eager for a trade agreement, though they believe it will still take considerable time to rebuild the ground they have lost in China. ************************************************************************************* EU Ag Commissioner Named to Trade Post The European Union Ag Commissioner is taking a new job, becoming the EU trade commissioner. Phil Hogan will take the place of Cecilia Malmström in November, according to Politico. Hogan will oversee trade talks with the United States, if the talks launch, pending a standoff over the inclusion of agriculture. Hogan will also be tasked with developing retaliations against countries blocking the dispute settlement system of the World Trade Organization, which includes the United States. Hogan was appointed to the trade position by European Commission President-elect Ursula von der Leyen (lay-in), who says she will travel to Washington “the moment I’m in office,” to discuss tariffs threats with President Donald Trump. Hogan says he is looking forward to helping von der Leyen pursue a “strong, open and fair trade agenda,” and strengthening Europe’s role as a global trade leader, adding that trade is “political priority” for the European Commission. Hogan has served as European Commissioner for Agriculture and Rural Development since November 2014. ************************************************************************************* Processing Equipment Manufacturer Says U.S. Lacks Hemp Processing Needs Hemp farmers are worried about losses because of a lack of processing equipment. Delta Separations, a manufacturer of hemp processing equipment, claims the holdup is because U.S. banks won't make loans for processing equipment. The company's CEO says banks are "scared that the FDIC will penalize them for supporting anyone that has the word cannabis in their supply chain." Because of this, the company claims farmers fear $7.5 billion of hemp will be rotting in fields this fall. The U.S. lacks roughly 90 percent of the processing capacity needed for hemp. Hemp represents a potential $8.5 billion market, according to the company, which says much of the potential is contributed to CBD oils. CBD is one of the fastest-growing consumer product segments, as 128,00 acres of hemp were planted this year, a 300 percent increase, now the hemp cultivation is legal. The 2018 farm bill legalized hemp for production, and the Department of Agriculture is working on guidance for hemp production and processing, due out later this year. ************************************************************************************* AEM Releases August Ag Equipment Sales Numbers August 2019 saw increases in U.S. sales of combines and four-wheel-drive tractors as well as total U.S. two-wheel-drive tractor sales compared to August of last year. The Association of Equipment Manufactures monthly sales report shows four-wheel-drive tractor sales increased 19.3 percent in August compared to last year and combine sales increased 11.5 percent. Total sales of two-wheel-drive tractors in August increased 1.9 percent compared to August last year. Sales of under 40 horsepower two-wheel-drive tractors increased 2.1 percent, while sales of 40-100 horsepower tractors decreased 1.4 percent, and sales of 100-plus horsepower tractors increased 13.6 percent. For Canada, August four-wheel-drive tractor sales were flat and combine sales decreased 45.4 percent. August two-wheel-drive tractor Canadian sales were mixed, with a 9.9 percent increase in small tractors, and a 4.2 percent increase in 40-100 horsepower tractors. AEM’s Curt Blades says that, while the numbers are flat to positive for the year, “we and the industry remain cautious about the overall Ag economy.” ************************************************************************************ ESMC Partners with United Soybean Board, The Ecosystem Services Market Consortium has received $255,000 from the United Soybean Board to help develop an ecosystem service protocol for the Soy and Corn Belt. ESMC's ecosystem services protocols measure soil organic carbon, greenhouse gas emissions, water quality and water use efficiency. Through the partnership, ESMC will work with soybean farmers in Illinois, Indiana, Iowa, Minnesota, Missouri, Nebraska and Ohio in a pilot project covering 50,000 acres. The Consortium will be building on its experience with an initial pilot project in the Southern Great Plains on 12 ranches in Oklahoma and Texas. ESMC champions a voluntary, market-based approach to incentivize farmers and ranchers to implement conservation practices that provide quantified ecosystem benefits. The resulting environmental credits will be available for purchase by corporations to meet their sustainability goals when ESMC launches its marketplace in 2022. The Consortium's long-term goals are to enroll 30 percent of available land in the top four crop regions and top four pasture regions to impact 250 million acres by 2030.
| Rural Advocate News | Thursday September 12, 2019 |
Washington Insider: Farmers and the Trade Bailout Press reports this week indicate that a great deal of media ink continues to be dedicated to the political impact of administration trade policies. And at the same time, the Washington Post is highlighting what it calls “the growing concerns” by some administration insiders over the “unprecedented farmer bailout.” The report says that senior government officials, including some in the White House, privately expressed concern that the administration’s $28 billion bailout for farmers “needed stronger legal backing,” according to several officials who participated in the programs’ planning. The bailout was created by the administration as a way to try to calm outrage from farmers who have been caught in the middle of the White House’s trade war with China. USDA authorized $12 billion in payments last year and another $16 billion this year, and “more money could be on the way,” the President promised. But two USDA officials involved in the program told the Post they were worried the funding could surpass the original intent of the New Deal-era Commodity Credit Corporation, which is being used to manage the programs. Separately, some officials in the Office of Management and Budget also raised questions about the scope of the $16 billion second round of payments. They pushed USDA to provide more legal reasoning for the effort, the officials said. Now the department says the concerns raised by OMB have been resolved. Concerns about the programs are coming at a crucial time as many farmers are relying on the funding. However, Congressional approval likely will be required to allow the program to exceed its current $30 billion cap on payments. The Post says that while the President has touted his financial support for farmers, administration officials have said little publicly about “internal consternation” over the process. White House aides are for the first time pressing Congress to increase how much the administration can spend under the program before hitting Commodity Credit Corporation’s (CCC’s) legal spending limit, likely this fall. The bulk of the current program consists of direct checks intended to compensate for farmer losses from the trade war. There is little precedent for such an open-ended farmer bailout of this nature, the Post says. Even some officials who believe the bailout is legally sound worry about its scope and the speed with which it is being implemented. “They’re doing it really fast and shorthanded,” a former USDA official who spent several decades involved in reviewing new department regulations but left the government earlier this year told the Post. “The agencies implementing it are stretched thin, and there’s immense political pressure to get the money out quick.” In a statement to the Post, USDA acknowledged that OMB had raised concerns as part of its “normal clearance process” but said it cleared the package before it was published in the Federal Register. The statement also said OMB has no outstanding requests about the programs and that both “have been deemed legal by department attorneys.” The administration says its trade war is necessary to counter anticompetitive Chinese economic measures. However, China’s retaliatory actions have increased economic pressure on thousands of American farmers. Net farm income has fallen by nearly half over the past five years, from $123 billion to $63 billion. Still, close to three in 10 farmers feel the bailout payments will “not at all” make up for losses related to the tariff battle in 2019, according to an index calculated by Purdue University released this month. But about 70% said the bailout would either “completely or somewhat relieve” their concerns about the tariffs. Questions around the program’s design may become increasingly urgent as the administration seeks approval from Congress to bailout funding for the first time. The CCC is expected to hit its $30 billion borrowing limit sometime after Oct. 1, according to an administration request for budget increases first reported by Roll Call. In addition, it is unclear how strong producer support is for the administration’s trade policy. For example, Reuters reported this week that many farmers are angry and that some are directing their wrath not at the Republican president, but at Washington's bureaucracy. The report notes that the administration has faced backlash from agricultural groups, ethanol producers and Midwestern politicians, but that polls still show that while administration support in farm country has slipped, it remains substantial. In still another wrinkle, Reuters says that instead of directing their anger at the administration, dozens of farmers interviewed blasted USDA and other Washington institutions they believe are thwarting his true agenda. “Unsubstantiated conspiracy theories involving USDA staff are circulating in farm country and gaining traction online,” Reuters said. So, we will see. Numerous ag observers warned earlier that proposed bailout programs were unlikely to fully pacify producers, who have invested heavily in overseas markets. Such bailout efforts failed badly in 1980 following the administration’s embargo on ag product shipments to Russia and the following severe political pushbacks and bad feelings that have persisted to this day. It may be difficult for the current administration to escape similar criticism, especially if current trade negotiations fail and overseas markets decline further. These are developments producers should watch closely over the coming months, Washington Insider believes.
| Rural Advocate News | Thursday September 12, 2019 |
White House Told Biofuel Backers to Accept Boost in RFS Levels Trump administration officials urged biofuel companies to accept a proposed increase of around five percent in the 2020 biofuel targets under the Renewable Fuel Standard (RFS), with reports indicating the companies were told they needed to accept the plan by Friday. While some question if that was merely a negotiating tactic on the part of the administration, indications are the administration told biofuel interests work on boosting the 2020 biofuel levels beyond the marks proposed by EPA earlier this year would need to be started by Friday for the final version of the 2020 standards if the administration were to stick to the law requiring the standards to be finalized by November 30. A meeting was expected to be held later Wednesday with refiners who have also chafed at the proposal to increase the levels for conventional biofuel by 500 million gallons and advanced biofuels by 500 million gallons. That would increase the total biofuel mandate to 21.04 billion gallons for 2020. It was not clear whether the White House would make the same “request” of refiners – that they accept the plan by Friday.
| Rural Advocate News | Thursday September 12, 2019 |
Treasury’s Mnuchin Says Ag Key Focus for This Month’s Trade Talks With China Deputy-level talks between the U.S. and China this month will have a focus on agriculture, Treasury Secretary Steve Mnuchin told the Senate Banking Committee Tuesday. Mnuchin assured lawmakers that they have spent a “lot of time even on trying to get an interim agreement” on agricultural issues with China. “I never thought I would become an expert on soybeans and other agricultural products,” he noted. “I have been accused at times of just wanting to sell soybeans. That is not what we are trying to do. But we want to make sure that China treats our farmers fairly and does not retaliate against the farmers in an unfair way.” As for the talks later this month at the deputy level, Mnuchin said, “I can tell you that [agriculture] is top of the agenda for the conversations we are having this month." Mnuchin also referred to China’s commitments to buy U.S. ag goods that have not been met with actual purchases. “I can also tell you that there were specific commitments made in the Oval Office from the Chinese that they did not follow through on and that has been great concern on us for U.S. farmers,” he noted.
| Rural Advocate News | Thursday September 12, 2019 |
Thursday Watch List Markets Weekly jobless claims, consumer price index and core CPI are three reports out at 8:30 a.m. DTN will also be watching updated weather, any news on the U.S.-China trade talks and the biofuel meeting at the White House, and of course at 11 a.m. the all-important September USDA report. Weather Rain and developing strong winds in the northern plains and the southeast Canadian Prairies regions during Thursday will bring field work to a halt. Rain and thunderstorms also extend southeast into the northwest and north-central Midwest regions. Flooding remains a risk due to recent rains in the northwest and north-central Midwest and an increasing risk in the Northern Plains as well. Scattered thundershowers this afternoon or tonight will also occur in the east and south Iowa area southwest through southeast Kansas and into Oklahoma. Drier elsewhere in the key U.S. and Canada growing areas Thursday.
| Rural Advocate News | Wednesday September 11, 2019 |
China Ready to Purchase U.S. Ag Goods China is expected to agree to purchase more U.S. agricultural products in hopes of a better trade agreement. The South China Morning Post reports working-level officials were discussing the text of a deal, which would be reviewed when trade officials meet in Washington next month. The text is based on details negotiated back in April, before talks fell apart in May, after China backtracked on several previously agreed-upon issues. China offered to purchase more U.S. agricultural products in exchange for the U.S. delaying implementation of further tariffs. China may also offer more market access and better intellectual property protection, according to a Chinese source familiar with the talks. A Chinese official told a group of U.S. business representatives Tuesday that China wats a "mutually accepted solution to the trade dispute." However, U.S. trade experts based in China suggests the October meeting is an attempt to peacefully get past the 70th anniversary of the People's Republic of China, suggesting talks will stall in 2020. ************************************************************************************* Navarro: Congress Will Pass USMCA yet This Year Peter Navarro says there is a 100 percent chance Congress will pass the U.S.-Mexico-Canada Agreement. The advisor to President Donald Trump told CNBC news that he “can’t imagine that Nancy Pelosi would not put this on the floor to at least have a vote.” He expects the vote will occur before the end of this year. Navarro has played a critical role in the negotiations with Canada and Mexico, as well as in the current U.S.-China trade war. Democrats in the House are still voicing concerns over labor and environmental standards included in the trade agreement. Speaker of the House, Pelosi, has not offered comment in response to Navarro’s claims. The U.S.-Mexico-Canada Agreement replaces the North American Free Trade Agreement and offers improved trade for U.S. agriculture. Farm groups are planning a rally Thursday at the capitol in support of the agreement, and urging lawmakers to pass the trade deal. Mexico has already approved the agreement, and Canada is in the process of gaining approval for the trade deal. ************************************************************************************* Report: Lack of Infrastructure Investment Threatens Export Future An independent report says a lack of funding for infrastructure improvements could put more than $72 billion in additional GDP and 77,000 new jobs at risk. The report by Agribusiness Intelligence was commissioned by the Department of Agriculture’s Agricultural Marketing Service. The study examined three scenarios that included potential impacts of reduced investment for U.S. waterways, maintaining the status quo of less than two percent growth, or increased investment of $6.3 billion during the next ten years. Currently, appropriated funds, which are considered maintaining the status quo, do not enable the U.S. Army Corps of Engineers to keep pace with barge-volume traffic, or growth and infrastructure maintenance needs. As a result, the percentage of vessels delayed on all waterways has increased from 35 percent in 2010 to 49 percent in 2017, which, in turn, adds to the total shipping cost. A spokesperson concludes, “the U.S. inland waterways infrastructure needs major rehabilitation and construction to restore it to its full capability, to forestall major disruptions, and provide opportunities for growth.” ************************************************************************************* NBB Asks President Trump to Save Small Biodiesel Producers The National Biodiesel Board is urging President Donald Trump to protect small biodiesel producers. The organization penned a letter to the President this week, asking he “save” small biodiesel producers harmed by his administration's small refinery exemptions. The letter indicates that more than 200 million gallons of U.S. biodiesel production capacity has been idled as a result of policy instability. NBB anticipates additional facilities will close over the next several months if the President does not “take quick action to restore RFS volumes for biodiesel and renewable diesel." The letter highlights additional policy headwinds that NBB says are harming the biodiesel industry, including the U.S. Department of Commerce's recent proposal to “virtually eliminate” trade protections against heavily subsidized biodiesel imports. Kurt Kovarik, NBB Vice President of Federal Affairs, added, "Its important for President Trump to keep his word and continue supporting the Renewable Fuel Standard.” NBB is asking the administration to restore RFS volumes undercut by exemptions and to provide growth opportunities for biodiesel. ************************************************************************************* Organic Sector Set to Harvest Record Acreage Organic farmers will harvest a record number of acres across the U.S. this year despite the weather and trade challenges plaguing agriculture in 2019. According to the Annual Acreage Report by Mercaris (mur-car-us), farmers will harvest 3.1 million acres of U.S. land certified for organic production, an increase of seven percent over 2018. The increase is driven in large part by a surge in new certified organic field crop operations across the nation. The West and High Plains regions saw the largest jump in organic harvested field crop acres this year. Overall total organic acres, which includes pasture, rangeland, and organic crop area, will reach 8.3 million acres this year. Additionally, more than 18,000 U.S. farm operation are now certified compliant with the USDA National Organic Program standards, a three percent increase from 2018. A Mercaris spokesperson says the increase comes despite weather challenges this year, and that “with better weather in 2020, the industry will likely see even more growth in the year to come." ************************************************************************************* Alltech Announces Industry-wide Survey on Women in Agriculture Alltech has launched a survey to gather insights into the professional landscape for women in agriculture. Announced Tuesday, the survey aims to collect feedback about the barriers that impede progress, and to identify the resources needed to ensure workplace equality. The survey is open to all sectors of agriculture, and the results will be revealed at the Women in Food & Agriculture Summit this December in Amsterdam. Alltech CEO Mark Lyons says, “we hope to gain a better understanding of the challenges facing women in ag and identify opportunities for growth.” Lyons says the industry needs to make sure “young people see themselves represented and can envision a future career in the industry.” Alltech has partnered with AgriBriefing to conduct the survey. Women and men in agriculture are encouraged to participate in the survey that will contribute to global conversation about gender equality in agriculture. A link to the survey can be found online at Alltech.com/news.
| Rural Advocate News | Wednesday September 11, 2019 |
Washington Insider: Fight Over Trade Facts For the past several years there has been an important policy disagreement in many quarters over trade basics — whether trade deals simply ship jobs overseas, or not. Powerful groups in both parties openly disagree on trade issues, a controversy that is not new; the previous administration sharply criticized trade impacts during its campaign, but later came to support proposals for far-reaching deals. Many press reports glibly cite trade agreements as the source of U.S. job losses in several sectors, although more recently, more detailed investigations have begun to focus on the role of new technologies in increasing productivity and causing changes in the investment and employment landscape. Still, the current administration has adamantly insisted that its heavy reliance on tariffs — taxes and tax threats on imports — has little impact on the domestic economy. And the New York Times is reporting this week that Treasury Secretary Steven Mnuchin said that “President Trump’s tariffs on Chinese imports were having no impact on the United States economy.” The Times called the assertion “at odds with a raft of increasingly gloomy economic data and industry surveys.” It noted that the administration has used large tariffs — increased rates on $360 billion of imports from China and is preparing to tax another $160 billion worth on Dec. 15. It concluded that the levies have begun to hit consumer products including furniture, televisions and bicycles, prompting retailers and manufacturers to warn of lower sales and profits going forward. And, it cited the administration’s provision of $28 billion in payments “to help struggling farmers who have lost sales as a result of Chinese retaliation” as evidence of current and potential negative impacts. While the United States and China are expected to resume high-level trade talks next month, and a deal could ultimately be reached, Secretary Mnuchin suggested that the administration “saw no downside to keeping the trade war going, dismissing the idea that Trump’s tariffs were doing any damage to the United States economy.” “It’s fair to say it’s impacted the Chinese economy,” Mnuchin said in a TV interview. “We have not yet seen any impact on the U.S. economy.” Mnuchin’s comments dovetail with those of the President who has continued to insist that the trade war is hurting China more than the United States, “which is taking in billions of dollars in tariffs.” Still, the Times charged that “the Treasury secretary’s view seems increasingly divorced from economic data, which are showing pain from a trade war that has lasted more than a year.” The report proceeded to list statements and studies that report such impacts, including those already affecting the economy. For example, last week an Institute for Supply Management survey showed that manufacturing activity in the United States contracted for the first time since 2016 and employment growth was moderating. Countries from Germany to Australia are feeling the effects of the trade war, contributing to a slowdown in a global growth, the report said. The Treasury secretary did allow that certain companies had been feeling the pinch from higher taxes on their imports from China but claimed that the administration was managing this through an exemption process that allowed companies to avoid certain tariffs to help mitigate the effect. “It is the U.S. importer which technically pays the tax,” said Brad Setser, a Council on Foreign Relations fellow and former Treasury Department economist. “The extent that other countries pay for a share of the tax, it is because the tax induces them to reduce the price they charge to the United States.” Business groups representing a wide range of sectors, from retailers to soybean growers, have blamed the tariffs and China’s retaliation for disrupting their supply chains and slowing their sales and hiring. However, the administration’s top spokesmen and economic advisers have publicly tried to put a positive spin on the trade war, saying it is having little to no effect in the short term and will pay off in the long term. “If we can get a good deal, a deal that’s good for us, we’ll sign it,” Mnuchin said on Monday. “If not, the president is perfectly fine with continuing the tariffs, which are raising significant amounts of money for the U.S. Treasury.” The Times charged further that “while they express optimism in public, some administration advisers have begun to caution the President about the potential economic impact from a long-running trade war. That includes Sec. Mnuchin, who has privately tried to prevent Trump from escalating his trade fight with additional tariffs. In the meantime, economists in the administration have been carefully tracking economic data and considering strategies to spur growth, including a potential payroll tax cut. The President has called for additional tax cuts and has repeatedly pressed the Fed to cut rates more aggressively to stimulate an economy that he says is firing on all cylinders. Mnuchin acknowledged that slowing global growth could have a “moderate impact” on the U.S. economy, though he has previously insisted that any slowdown is unrelated to the trade war. But he said he remained optimistic that the passage in Congress of a trade pact with Canada and Mexico would jump-start the economy and that a deal with China remained a possibility. So, we will see. Sectors like agriculture that have worked hard to build overseas markets are deeply unhappy to see them limited by tariffs, and are increasingly critical of the administration’s “get tough” policy as it is currently being administered. Whether that pushback reaches a critical level as the campaign season for the 2020 election nears remains to be seen, but producers should watch that debate closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Wednesday September 11, 2019 |
More Pressure on Administration as They Try to Find Biofuel Compromise Small refinery exemptions (SREs) continue as a source of scorn for biofuel backers, with the National Biodiesel Board and 33 biodiesel producers calling on the Trump administration to boost mandates for biodiesel. “Small refinery waivers destroy demand for all biofuels across the board, with a significant impact on domestic biodiesel and renewable diesel producers,” the firms said in a letter to President Donald Trump. “Every small refinery waiver issued by the Environmental Protection Agency has the potential to put a U.S. biodiesel producer out of business.” The letter noted that small refiners can produce nearly one billion gallons of fuel in a year, with the biodiesel requirements requiring the blending of about 20 million gallons of biodiesel or renewable diesel annually. The companies said that amounts to a “very small fraction” of total fuel production. The 31 SREs granted for the 2018 compliance year amount to 1.4 billion gallons of renewable fuels not being used, the letter noted, including “millions of gallons of biodiesel and renewable diesel in the biomass-based biodiesel, advanced and overall volumes.” This comes as the administration continues to work on a biofuel policy plan, a package that USDA Secretary Sonny Perdue told reporters Tuesday would make farmers “happy” and still “save small refiners from certain closing.” Discussions are still ongoing, Perdue noted. “The best answer is it is still in process,” he said, including discussing “how we can recover some of the small refinery waivers that were given, from a gallons perspective.”
| Rural Advocate News | Wednesday September 11, 2019 |
NFU not yet backing USMCA The National Farmers Union is so far not yet backing the U.S.-Mexico-Canada Agreement (USMCA), despite the agreement being widely viewed by most in U.S. agriculture as a positive for the sector. A resolution adopted by NFU’s board and released Monday says that country-of-origin labeling (COOL) should be added to the agreement, and that the trade pact should also address concerns Democrats have raised about labor standards and drug pricing. COOL language will not be part of any final USMCA voted on by Congress, congressional and administration sources stress, but discussions continue on some of NFU's other shortcomings in the environmental, labor and drug pricing areas. The group held a session at USDA as part of their annual flyin for members to visit Washington and meet with administration officials and lawmakers. Some in the group were critical of the Trump trade policies, but USDA Undersecretary Ted McKinney sought assured the farmers he heard their concerns and pledged the administration was seeking to open markets for U.S. ag goods. For perspective, NFU has never supported a multilateral trade deal.
| Rural Advocate News | Wednesday September 11, 2019 |
Wednesday Watch List Markets Producer price index and wholesale inventories may gave some indication of how the economy an inflation is faring. We will also be watching for any news about the upcoming U.S.-China trade deal, the proposed U.S.-Japan trade agreement, and upcoming weather in the Midwest. Weather Moderate to very heavy showers and thunderstorms expected during the day Wednesday and Wednesday night from the northern Rockies across the west and south portion of the Northern Plains through the northwest and north-central Midwest areas. This is likely to cause local flooding of fields. Rain may also extend northward into southern Saskatchewan during this period. A few showers into the northeast Midwest. Little elsewhere in the key US and Canada growing areas Wednesday. Temperatures below normal Canadian Prairies and the northern plains today, above normal elsewhere in the central and eastern U.S.
| Rural Advocate News | Tuesday September 10, 2019 |
China Offers to Purchase U.S. Ag Products ahead of Trade talks Planned trade talks next month between China and the U.S. has agriculture and the U.S. economy optimistic the talks will make progress. Politico reports that in the talks last week, China offered to purchase more U.S. agricultural products ahead of the planned negotiations for October. Phone conversations are expected to increase in volume between the two sides over the next few weeks. China will travel to Washington in early October to meet face-to-face, a rescheduling of talks planned for early September. The planned meetings this month lost traction after an escalation of tariffs between the U.S. and China in August. During phone conversations last week, Chinese official confirmed that the "two sides agreed that they should work together and take practical actions to create favorable conditions for consultations.” Meanwhile, farm groups are urging Congress and the administration to finalize the U.S.-Mexico-Canada Agreement, as lawmakers have returned from a six-week recess. Finally, President Trump is expected to sign a trade agreement with Japan this month, another welcomed trade development for agriculture. ************************************************************************************* USDA Announces Resources Available for Farmers Hurt by 2018, 2019 Disasters The Department of Agriculture Monday announced signups for disaster aid for 2018 and 2019, including aid for damages from Hurricane Dorian, will open this week. Wednesday, September 11, producers will be able to apply for assistance through the Wildfire and Hurricane Indemnity Program Plus. Agriculture Secretary Sonny Perdue says, "We hope the assistance will ease some of the financial strain farmers, ranchers and their families are experiencing." More than $3 billion is available through the disaster relief package passed by Congress and signed by President Trump in early June. In addition, the relief package includes new programs to cover losses for milk dumped or removed from the commercial market, and losses of farm stored commodities due to eligible disaster events in 2018 and 2019. Also, prevented planting supplemental disaster payments will provide support to producers who were prevented from planting crops for the 2019 crop year. WHIP+ (whip-plus) will be available for eligible producers who have suffered losses of certain crops, trees, bushes or vines in counties with a Presidential Emergency Disaster Declaration or a Secretarial Disaster Designation for primary counties. ************************************************************************************* USCMA Capitol Rally Planned for Thursday Farmers for Free Trade and a group of agricultural organizations will host a rally Thursday in Washington, D.C. on the National Mall in support of the U.S.-Mexico-Canada Agreement. Congress has returned from its August recess, and agriculture groups are mounting a push to get the trade deal passed by lawmakers this fall. The American Farmers Rally for Passage of USMCA starts at 9:30 a.m. ET Thursday morning. Rally organizers include the American Farm Bureau Federation, The American Soybean Association, the National Corn Growers Association, among other groups representing the dairy and fruit sectors. House Agriculture Committee Chair Collin Peterson will attend, along with ranking committee Republican Mike Conaway, and other key ag lawmakers. Tom Vilsack, former Agriculture Secretary and current President and CEO of the Dairy Export Council will also attend, along with Farm Bureau President Zippy Duvall. The rally is an effort to highlight the benefits of the trade agreement and to urge lawmakers to pass the agreement without delay. ************************************************************************************* Canada Consults WTO On China Canola Trade Canada is seeking consultation from the World Trade Organization with China regarding the ongoing Canola dispute. The Canola Council of Canada welcomed the action, noting that since market access issues started in early March, Chinese importers remain unwilling to purchase Canadian canola seed from exporters. Since then prices for canola have fallen approximately 10 percent - which translates into $1 billion less from canola for the Canadian economy on an annual basis. Council President Jim Everson says, "While we've supported continued technical engagement, the scientific basis for China's actions remains unclear." Everson says the action is the first step in regaining market access. The canola industry hopes the move can resolve the dispute to prevent further WTO dispute resolution actions. Further, the Canola Council of Canada believes more action is necessary to diversify canola markets, including enhancing market access in Asia and diversifying markets in Canada by increasing the amount of canola used in biofuel. ************************************************************************************* Farmers Union Board Calls on Administration to Strengthen Agricultural Markets The National Farmers Union is calling on Washington to address mounting financial difficulties worsened by recent policy decisions. The NFU board of directors is calling on Congress and the administration to "work to rebuild international and domestic markets, restore America's reputation as a reliable trading partner, and reverse policies that have undermined the Renewable Fuel Standard." The resolutions also call for strengthening and passage of the U.S.-Mexico-Canada Agreement. By most metrics, the farm economy is in a slump, and has been for six years. NFU says recent actions by the administration have added to family farmers’ and ranchers’ troubles. An international trade war has eroded international markets, while the undermining of biofuels programs has harmed domestic markets. Both have added to the oversupply of many American farm products and depressed prices even further. The resolutions were announced as nearly 400 farmers kicked off NFU’s fall fly in Monday in Washington. The farmers are expected to meet with lawmakers early this week. ************************************************************************************* Checkoff-Funded Masters of Beef Advocacy Program Reaches Major Milestones Just ten years after its inception, the Beef Checkoff-funded Masters of Beef Advocacy program celebrated its 15,000th graduate in August. The program was created to equip and engage beef industry advocates to communicate about beef and beef production. It is one of the strongest beef advocacy efforts in the industry. A self-directed online training program managed by the National Cattlemen’s Beef Association, a contractor to the Beef Checkoff, the program requires students to complete five lessons in beef advocacy. The program has also been made available via digital download to allow agriculture educators, state beef organization representatives and other beef industry and youth leaders to incorporate the modules into their curriculums. Ryan Goodman of the National Cattlemen’s Beef Association says the program has evolved “to become a key tool and support system” for beef industry advocates. The program is open to everyone, and there is no cost to participate. To enroll or find out more about this checkoff-funded program, go to MastersOfBeefAdvocacy.com.
| Rural Advocate News | Tuesday September 10, 2019 |
Washington Insider: US, India Trade Talks Seen Vulnerable Most of the media attention these days is on the U.S.-China trade fight and on the slow Congressional pace toward approval of the new NAFTA. However, Bloomberg also is calling attention to the potential vulnerability of U.S.-India trade negotiations that were suspended earlier. The report says potential outcomes include a limited trade deal, or could be undercut by the same type of aggressive approach the administration has taken with China. Bloomberg raises the question of whether President Donald Trump's “cordial relations” with Indian Prime Minister Narenda Modi are strong enough to avoid confrontations over trade barriers on medical devices, agriculture, telecommunications equipment, and energy. Still, there are potential paths to deals — India can diffuse potential escalation by taking small steps such as a better model for medical device price caps, concessions on heavy bike tariffs and addressing some agricultural issues, said Richard Rossow, senior adviser at the Center for Strategic and International Studies. However, so far those concessions have not been forthcoming, Sadanand Dhume, American Enterprise Institute resident fellow, told Bloomberg. Whether that is changed by increased U.S. pressure is the “million dollar question,” he said. Recently, Trump lashed out against India’s tariffs and special World Trade Organization privileges. His lead negotiator, U.S. Trade Representative Robert Lighthizer, ended India’s duty-free benefits last summer with the comment that India must address trade barriers or face some unspecified “additional actions.” “It’s looking like “China 2.0,” Ashley Craig, co-chair of Venable’s International Trade Group, said. “It’s all of the same — shock and awe,” Craig said of the administration’s trade strategy. Unless India is willing to make concessions, a deal is unlikely, Nicole Bivens Collinson, who leads the international trade and government relations practice at Sandler, Travis & Rosenberg P.A., said. Modi and Trump agreed that their top officials would meet to address trade tensions but no date has been set. Modi and his delegation will attend the UN General Assembly in New York in late September, a trip that is prompting speculation that Lighthizer could hammer out initial outlines of a deal on the sidelines with Indian Commerce Minister Piyush Goyal. Analysts are looking for hints about whether talks may proceed since the President has twittered about a “very big trade deal” on the horizon and also complained that India has had a “field day” with tariffs. Working against a possible deal is widespread frustration across the U.S. government with India’s trade barriers, Rossow said. But India has more leeway for deal-making now that Modi won re-election, he said. When the recent talks on India’s agriculture barriers, high tariffs on IT products and Harley Davidson motorcycles and medical device price caps collapsed last June, the U.S. canceled India’s GSP duty-free benefits. In retaliation, India hiked tariffs on 28 U.S. products costing U.S. exporters about $1 million dollars daily, Dan Anthony, vice president of The Trade Partnership, said. “India is digging a hole deeper and deeper by continuing to raise customs duties,” Rossow said. The tariff threat has spooked U.S. multinationals who already have a strong foothold in India and view it as a natural place to expand as the trade standoff with China has them seeking alternative sourcing. “India is a very logical spot to go” as companies look to leave China, Karen Giberson, Accessories Council president, said. Possible tariff escalation is threatening industries that could face having yet another sourcing option compromised. Business groups and lawmakers want India to enact trade reforms but worry another trade war could rob U.S. importers of key sourcing options for manufacturing. Stakes are significant as U.S. goods and services trade with India totaled an estimated $142.1 billion in 2018 and generated a $24.2 billion trade surplus for India. Top exports from India to the U.S. include precious metal and stone ($11 billion), pharmaceuticals ($6.3 billion), machinery ($3.3 billion), mineral fuels ($3.2 billion), and vehicles ($2.8 billion). However, the trade partnership has been growing with U.S. exports to India rising by 26% in the last quarter, according to Mukesh Aghi, U.S.-India Strategic Partnership Forum president. So, we will see. The administration is pushing back hard on any argument that its trade policies are requiring support from Fed interventions in monetary policy, but the debate has become increasingly contentious and increasing political. This is a fight producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Tuesday September 10, 2019 |
US corn export rise to Japan may not materialize Agriculture specialists say a pest infestation problem – Fall armyworm – in Japan’s corn crop is not severe enough to affect import demand, the Wall Street Journal reported, undercutting hopes that a pact with Japanese buyers would help cut into the big U.S. stockpile of corn. The conflicting signals over the grain are among the complications U.S. farm exporters face as they adjust to diminished agriculture purchases from China. Corn is one of many commodities at the heart of restructuring supply chains as a result of the U.S./China trade dispute, and the search for new markets shows how tough it will be for farmers to match production to demand in foreign markets, the article notes. “Farmers turned to more corn production after China stopped buying U.S. soybeans, creating an inventory surplus that has sent prices tumbling,” the paper said.
| Rural Advocate News | Tuesday September 10, 2019 |
USDA Details WHIP+ Program With Signup Starting September 11 Signup for the $3 billion in disaster assistance under the via the Wildfire and Hurricane Indemnity Program Plus (WHIP+) will start Sept. 11, USDA announced Monday. The relief package included new programs to cover losses for milk dumped or removed from the commercial market and losses of eligible farm stored commodities due to eligible disaster events in 2018 and 2019, USDA said. Also, prevented planting supplemental disaster payments will provide support to producers who were prevented from planting eligible crops for the 2019 crop year. “Disaster losses must have been a result of hurricanes, floods, tornadoes, typhoons, volcanic activity, snowstorms or wildfires that occurred in 2018 or 2019.” USDA said that those producers not in areas getting a disaster declaration or designation can apply for WHIP+, but will have to provide additional supporting documentation relative to their losses being from a qualified disaster event. WHIP+ payments for 2018 disasters will be eligible for 100 percent of their calculated value, USDA said, while WHIP+ payments for 2019 disasters will be limited to an initial 50 percent of their calculated value, with an opportunity to receive up to the remaining 50 percent after January 1, 2020, if sufficient funding remains.
| Rural Advocate News | Tuesday September 10, 2019 |
Tuesday Watch List Markets There are no official reports due Tuesday, but traders will be keeping a close eye on weather and any trade news that might emerge. Trading in grains is apt to be quiet ahead of Thursday's WASDE report, especially if the extended forecast continues to look safely warm for row crops. Weather Lingering shower activity early Tuesday over the north and west Midwest and the northern part of the central plains region will diminish somewhat during the morning hours. Rain, showers and thunderstorms will redevelop late today or during tonight over the northern plains, across the northwest Midwest and into the north-central Midwest. This rainfall may become locally heavy, threatening to cause some local flooding of fields. Drier elsewhere in the key US growing areas Tuesday and Tuesday night. Showers and some light rain over the southern Canadian Prairies during Tuesday. Temperatures will average above normal over the central/south plains, Midwest and Delta regions. Temperatures below normal northern plains and Canadian Prairies.
| Rural Advocate News | Monday September 9, 2019 |
U.S., U.K. Trade Talks Could Get Bumpy Around Poultry Assuming that trade negotiations ever get going between the United States and the United Kingdom, feathers on both sides could get ruffled over poultry. U.K. Prime Minister Boris Johnson told U.S. Vice President Mike Pence that, “We’re not to keen on chlorinated chicken.” During a visit to the U.K. last week, Pence did admit that poultry could become a sticky issue in the negotiations. Politico says Johnson’s comments refer to the American practice of washing chicken with chemicals to kill pathogens like salmonella and E. coli. The process is called “pathogen reduction treatment” and it’s banned in the European Union. During dinner remarks last week, Pence admitted that chlorinated chicken will be the subject of some “pretty tough discussions.” During discussions last week, Johnson talked about his desire to free up the U.S. market to more British exports. He says Americans “don’t eat any British lamb or beef or haggis from Scotland.” Haggis is the national dish of Scotland and a pudding made from sheep’s heart, liver, and lungs. Johnson promises to pull the U.K out of the European Union by October 31. ********************************************************************************************** Pork Exports Reach New High Mark Despite Trade War U.S. pork exports were at a record-high in July while beef exports were relatively steady with last year’s strong results. That’s from data released by the USDA and put together by the U.S. Meat Export Federation. July pork exports surged to 233,242 metric tons, a 32 percent jump that topped the previous record set in 2018. Export value was $623.3 million, up 34 percent as it broke the previous high reached in November of 2017. Although U.S. pork faces retaliatory tariffs in China, American pork exports to China and Hong Kong contributed a good chunk of the July volume and value records. Beef exports increased one percent in July to 117,842 metric tons. The export value of $720.4 million was down slightly from a year ago but was still the seventh-highest monthly total on record. January-July beef exports were down two percent from a year ago in volume, while export value was slightly below last year’s record pace. Shipments to Mexico jumped higher in July after a 20 percent tariff was removed. ********************************************************************************************** White House Considering Biofuel Quota Boost A Bloomberg report says top Trump Administration officials have put together a plan that would give a five percent boost to the renewable fuels blending quota in 2020. The plan comes as President Donald Trump seeks to counter farm-state accusations of undermining a U.S. mandate that compels the use of corn-based ethanol and soybean-based biodiesel in the nation’s fuel supply. Officials from the White House, USDA, and the Environmental Protection Agency have been cooperating for weeks in ironing out the final details of the initiative designed to encourage U.S. biofuel demand. Bloomberg sources say the president hasn’t given final approval to the plan yet. Back on August 29, Trump took to Twitter and promised a “giant package” of changes would be submitted and approved within two weeks. While biofuel company shares surged in value with the news, some biofuel advocates say the tentative plan falls short of their push for immediate action to offset waivers exempting some oil refineries from the mandates. “We just want the EPA to enforce the standards that Congress gave them,” says Renewable Fuels Association Chief Geoff Cooper. “That means redistributing projected exemptions in the 2020 rule to ensure the statutory volumes for conventional renewable fuels remain whole.” He says it’s hardly a big gift to corn. It’s just “following the law.” ********************************************************************************************* McKinney: No USMCA Sales to Canada So Far Canadians are pleased with the U.S.-Mexico-Canada Trade Agreement. However, the Hagstrom Report says U.S. companies haven’t yet made any new sales in Canada based on the agreement. That news comes from USDA Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, who spoke to reporters while on a trade mission in Canada. Government and agriculture industry officials in Canada have said they’re happy with the agreement. However, there haven’t been any discussions about increases in dairy purchases or increases in any of the areas through which U.S. producers might benefit under the agreement. He did say that wheat grading, poultry, wine, and biotechnology provisions could also be a big benefit to U.S. agriculture. McKinney also says Canadian officials have told him that the Canadian Parliament will not vote on the agreement until the U.S. Congress has voted. McKinney says the USDA is also set to sponsor trade missions to Mexico, Ghana (GAH-nah), and Vietnam this year. ********************************************************************************************** More Farmers Falling Behind on Loans A U.S. banking regulator says more farmers are falling behind on loans held by community banks when compared to last year. The Federal Deposit Insurance Corporation says it’s watching for more risks in the ag sector. In its quarterly report, the FDIC didn’t refer directly to the Trump Administration’s trade war with China, which began in 2018. In a prepared statement, officials say, “We continue to monitor risks in the agriculture sector from low commodity prices and farm incomes.” The FDIC says the share of long-past due farm loans held by community banks, which are the major agricultural lenders, was 1.28 percent in April through June, up 13 basis points from the same time last year. The ratio captures the share of farm loans that are at least 90 days past due, or those loans which no longer accrue interest because of repayment doubts. Reuters says commodity prices have been hurt over the past year by a U.S.-China trade war that’s led to higher Chinese tariffs on U.S. agricultural exports, including soybeans. ********************************************************************************************** Tyson Volume Loss Due to Fire Minimal The fire at the Tyson Foods plant in Holcomb, Kansas, caused minimal volume losses to the company as it moved production to other plants. Chief Executive Noel White spoke at an investor conference last week. All of the employees were safely evacuated that day. The processing side of the plant wasn’t affected by the fire and is still operating. “I would say the volume loss has been somewhat minimal,” he said. “Now there is a cost in moving cattle a long distance. We can still service our traditional suppliers in that area and we have a lot of long-term, loyal customers that source from the plant. We’ve been able to move those orders to a number of our other plants.” Meating Place Dot Com says White expects the plant to get fully back in operation in the next couple of months. The electrical system was the hardest-hit part of the plant, with most of the downtime due to rewiring the plant’s electrical system. Last week, Tyson lowered its earnings guidance for fiscal 2019.
| Rural Advocate News | Monday September 9, 2019 |
Washington Insider: Slowing Job Growth and New Concerns Over the weekend, The Hill reported that “an underwhelming August jobs report is adding to fears of an economic slowdown, raising the stakes for President Trump's reelection bid.” New government data showed that the economy added roughly 130,000 jobs in August. The Hill said that “undershot economists' expectations as the labor market continues to slow.” The resilient job market has been one of the administration’s top selling points as it prepares for the re-election campaign on the strength of the U.S. economy, but the “disappointing August report threatens that message ahead of a critical stretch for the economy,” the report said. The new job numbers come as the administration and China try to revive trade talks after more than a year of tit-for-tat tariff hits. Deputy staff-level talks are now set to begin later this month with hopes that they will open the door to a meeting between higher-level officials in October. But with just 14 months until the 2020 election, the administration faces “a narrowing window to strike a truce with China that could steer the U.S. away from the edge of a recession,” The Hill said. While trade experts have generally ruled out chances of a comprehensive agreement at this time, the U.S. and China could seek a smaller deal to ease tensions and tariffs, The Hill said. “Failure to do so could derail not only the economy, but also weaken the President’s shot at another White House term,” The Hill opined. "Today's employment data, coupled with earlier revisions to 2018, suggest that we have hit a tipping point," wrote Diane Swonk, chief economist at Grant Thornton, in a Friday research note. "That is likely in response to trade tensions and the weakness we are seeing abroad." The President has remained defiant in the face of growing pressure to end his fight with China, downplaying the risks to the economy and talk that he is losing leverage. He has repeatedly warned Beijing not to wait to strike a deal with his potential successor, insisting the U.S. economy is strong enough to weather a battle with China. "'China is eating the Tariffs.' Billions pouring into USA. Targeted Patriot Farmers getting massive Dollars from the incoming Tariffs! Good Jobs Numbers, No Inflation(Fed). China having worst year in decades. Talks happening, good for all!," President Trump tweeted Friday. He continued to downplay media reports of an economic slowdown. "The Economy is great. The only thing adding to 'uncertainty' is the Fake News!" he added just hours after the jobs report was released. So far, consumers have been largely insulated from the direct effects of the trade war, even as business expansion, manufacturing and other trade-sensitive sectors faltered, The Hill said. And, it noted that “while the U.S. faces higher odds of a recession, it still enjoys a strong labor market, steady consumer spending, and solid wage growth.” Roughly 571,000 workers joined the labor force in August, pushing participation rates higher and keeping unemployment steady at 3.7%. "The stories in the paper have generated a psychology that is vastly worse than the reality," National Economic Council Director Larry Kudlow told reporters at the White House on Friday. "The underlying strength of the economy is much better than folks might think." Even so, months of fading industrial output, heightened tensions and dour economic data from abroad appear to be closing in on the job market, The Hill argued as job growth as the average monthly job gain has fallen from 234,000 last year to 158,000 in 2019. Economists worry that this indicator may be trending toward the 100,000 monthly average gain that is required to stave off a recession. The next test for the U.S. labor market will come in October, when president Trump is set to raise tariffs on $250 billion in Chinese imports to 30% from 25%. He also is set to finish imposing a 15% tariff on another $320 billion tranche of Chinese goods in December after applying those taxes to roughly half of those goods on Sept. 1. The Federal Reserve is expected to soften that blow with a rate cut when the bank's policy committee meets in Washington later this month. The Hill says it expects a moderate 0.25-percentage point cut “as a hedge against a potential downturn,” far less than the 1-percentage point cut president Trump is seeking. The president is pushing the Fed to slash interest rates in half from their 2% to 2.25% range, demanding a level of stimulus last seen during the 2008 recession. Fed Chair Jerome Powell, in a tweet posted shortly before the jobs report was released, countered during speech in Switzerland that "the most likely outlook for the U.S. is still moderate growth, a strong labor market, and inflation continuing to move back up," brushing off calls for a steep cut. Powell also acknowledged that the Fed could only do so much to protect the economy from trade policy. "Uncertainty around trade policy is causing some companies to hold back now on investment," Powell said. So, we will see. Administration analysts continue to insist that the outlook is mainly for fair economic weather – but that Fed interventions are long overdue. At the same time, economic observers are increasingly arguing that the U.S.-China fight is weakening the domestic economy, a debate producers should watch closely as it intensifies, Washington Insider believes.
| Rural Advocate News | Monday September 9, 2019 |
Uncertainty Over Trade Policy Is Likely To Reduce US Economic Output New research from the Federal Reserve indicates that trade uncertainty is likely to trim U.S. economic output by more than one percent through early 2020. Economists charted uncertainty with text analyses of newspaper articles and corporate-earnings calls. Higher uncertainty could lead firms to delay their investment and reduce their hiring, lower consumer confidence and spending, and ultimately curtail economic activity around the world. “The rise in [trade policy uncertainty] in 2018 and 2019 has gone hand in hand with a slowdown in world industrial production and global grade,” said the research report. The researchers found that an initial increase in trade-policy uncertainty in the first half of 2018 shaved around 0.8 percent from U.S. and global economic output in the first half of 2019. They further calculated that more-recent increases in uncertainty will now reduce U.S. output by more than one percent in the first half of 2020.
| Rural Advocate News | Monday September 9, 2019 |
Corn Growers: USMCA Must Top Fall Agenda Congress returns to Washington next week and passage of the new U.S.-Mexico-Canada Agreement (USMCA) should be at the top of their agenda, according to the National Corn Growers Association (NCGA). Farmers have taken the opportunity to share this message with lawmakers at local events during the August break, it said, “and are eager to see the working group process bear fruit so the agreement can move forward for consideration.” The group detailed that USMCA will “solidify a $4.56 billion export market and provide some certainty for farmers weathering a perfect storm of challenges. Ratifying USMCA will also instill confidence in other nations that the U.S. is a reliable partner and supplier, ensuring U.S. agriculture remains competitive for generations to come.”
| Rural Advocate News | Monday September 9, 2019 |
Monday Watch List Markets Starting a new week, traders will check the latest weather forecasts and be interested in any trade news that might have happened over the weekend. USDA's weekly report of grain inspections is due out at 10:00 a.m. CDT, followed by Crop Progress at 3 p.m. Corn and soybean crop development will be Monday afternoon's topics of interest. Weather Monday features moderate to heavy rain from the Canadian Prairies through the Northern Plains and northern Midwest. We'll also see light rain in the western and central Plains and western Midwest. Other crop areas will be dry. Temperatures will be seasonal north and hot south. There is no frost threat in the next ten days.
| Rural Advocate News | Friday September 6, 2019 |
U.S., China to Meet in October on Trade Negotiators from the United States and China will meet face-to-face next month. Chinese officials told reporters Thursday the agreement was reached in a phone conversation this week. China’s Vice Premier visited over the phone Thursday morning with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer. Following the call, China announced negotiators plan to travel to Washington next month for high-level talks, and will continue consultations through September ahead of the meeting in October. The announcement from China comes as President Trump told reporters in the Oval Office this week that China wants to reach a deal with the United States. The U.S. Trade Representative’s office has yet to confirm the planned October meeting, but did say discussions will take place in the coming weeks. The tit-for-tat trade war with China has dropped U.S. ag exports to China from more than $20 billion in 2017, to $9 billion last year. A breakthrough in negotiations would be welcome news for agriculture. ************************************************************************************* Federal Reserve Beige Book: Agriculture Sector is Weak The Federal Reserve Bank Beige Book released this week reports continued weak economic conditions in farm country. Released Wednesday, the report states agricultural conditions remained weak as a result of unfavorable weather conditions, low commodity prices, and trade-related uncertainties. Districts with agricultural ties, but especially in the Midwest, report declining agricultural economy measures, with further farm income declines expected. The Tenth District in Kansas City reported earlier this summer that farm income and credit conditions showed some signs of stabilizing. Demand for agricultural lending remained high, but bankers anticipated slower growth in coming months. The Kansas City district reports the share of new farm operating loans denied by bankers declined slightly in the second quarter of 2019 after reaching a five-year high a year ago. The Beige Book, published eight times a year, is a Federal Reserve publication about current economic conditions across the 12 Federal Reserve Districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from district sources. ************************************************************************************* Trade War Costing Nebraska Farmers $1 Billion A new analysis by the Nebraska Farm Bureau estimates the ongoing retaliatory tariffs imposed on U.S. agricultural exports will cost Nebraska producers $943 million in lost revenues in 2019. The projected losses would be in addition to tariff-related losses in farm-level income estimated between $695 million to $1 billion in 2018. The analysis was conducted to provide an assessment of losses independent of the Market Facilitation Program assistance available to farmers. Nebraska Farm Bureau President Steve Nelson says the results show “how critical it is that we resolve the prolonged trade conflicts that have created the tariff pressures.” The analysis shows that Nebraska soybean and corn growers will likely see the greatest cumulative losses. Soybean producers as a group are projected to lose out on nearly $589 million from retaliatory tariffs, and corn producers are estimated to lose roughly $251 million. Pork producers in the state are projected to see $40 million in losses, while sorghum and wheat growers will collectively experience losses around $20 million. ************************************************************************************* National Milk Producers Federation Urging Farmers to Sign up for DMC With the signup deadline for the Dairy Margin Coverage program quickly approaching on September 20, the National Milk Producers Federation is urging all dairy farmers to enroll in the program. The program is guaranteed to pay all producers enrolled at the maximum $9.50 per-hundred-weight coverage level for at least every month of production this year through July, according to USDA data. The latest enrollment numbers indicate that 68 percent of dairy operations with an established production history have enrolled so far for this year. This represents more than 18,000 producers nationwide. Jim Mulhern, NMPF President and CEO, says the program “offers better support for dairy farmers than its predecessor,” and is “worthwhile for every farmer.” The Dairy Margin Coverage program replaced the Margin Protection Program for dairy. NMPF says the new program offers a more robust safety net for dairy producers of all sizes. NMPF has a resource page on its website, www.nmpf.org, to help farmers sign up for the program. ************************************************************************************* USDA: U.S. Food Insecurity Declined in 2018 The Department of Agriculture says food insecurity declined in 2019. Data released this week by USDA’s Economic Research Service shows that in 2018, an estimated 88.9 percent of U.S. households were food secure throughout the entire year, meaning they had access at all times to enough food for an active, healthy life for all household members. The remaining households, 11.1 percent, were food insecure at least some time during the year, including 4.3 percent that experienced very low food security. However, the prevalence of food insecurity overall declined from 11.8 percent in 2017. The reported decline was statistically significant, according to USDA, and continued a decline from a high of 14.9 percent in 2011. Very low food security was not significantly different from its 4.5-percent rate in 2017.USDA says that in very-low-food-secure households, the food intake of one or more household members was reduced and their eating patterns were disrupted at times because the household lacked money and other resources for obtaining food. ************************************************************************************* Kellogg Introducing Incogmeato Plant-Based Products Kellogg’s Morningstar Farms announced this week it will introduce a new plant-based product line, called Incogmeato. The company says the new product line will include the company's first ready-to-cook plant-based burger and fully prepared plant-based chicken tenders and nuggets. The company claims the new product line offers a “delicious and satisfying meat-like experience.” The new Incogmeato plant-based portfolio will hit retail meat cases in grocery stores and foodservice in early 2020. Sold in the refrigerated meat case, the four-ounce plant-based patties are made with non-GMO soy, according to the company. The plant-based chicken tenders and nuggets will be placed in the freezer section next to traditional chicken offerings. Morningstar is the plant-based brand owned by Kellogg and includes many different plant-based products, from plant-based sausages to corndogs. Morningstar Farms was introduced in 1975 by Worthington Foods. Kellogg purchased Worthington Foods in 1999, including the MorningStar brand. Kellogg then sold Worthington Foods in 2014, but retained the Morningstar Farms product line.
| Rural Advocate News | Friday September 6, 2019 |
Washington Insider: Military Project Funds Shifted to Wall, States Complain As might be expected, the funding fight continues as the list of military projects to be deferred to provide the extra $3.6 billion funding for the southern border wall draws bipartisan complaints this week. The result, Bloomberg says, is an increase in pressure on Congress to resolve the long-running conflict – or to find the money elsewhere. The administration already successfully faced down a bipartisan resolution to end the emergency declaration that was issued after Congress refused to appropriate funds for a border wall in a lengthy government shutdown earlier in the year. Congress was unable to override the veto, even though more than two dozen Republicans in the House and Senate joined Democrats to oppose that attempt to unilaterally shift taxpayer money. The current list of projects the Department of Defense proposes to put aside includes nearly $1.1 billion targeted for facilities in 23 states, with the rest coming from projects in U.S. territories and overseas. The cuts hit states represented by members of both parties, including $62.6 million for a middle school at Fort Campbell in Kentucky, the home state of Senate Majority Leader Mitch McConnell, R-Ky., and $160 million for engineering and parking projects at the United States Military Academy in New York, home to Senate Minority Leader Chuck Schumer, D-N.Y. Alaska, represented by Republicans, and Virginia, represented mostly by Democrats, are also among the biggest losers on the hit list, as are Puerto Rico, Guam and the Virgin Islands, with the trio of territories targeted for $687 million in deferred projects. A handful of Republican senators seeking re-election next year also are facing cuts in their states, including Sen. Thom Tillis, R-N.C., who once wrote a Washington Post op-ed to oppose the president’s emergency declaration, but who later flipped to vote with the president in March. Among the deferrals in his state are projects at Camp Lejeune, one of the state’s major employers. Projects in Arizona, Colorado, Texas and South Carolina are also on the list. Amid the ongoing controversy over spending on the southern wall, China announced this week that its trade negotiators will travel to Washington early next month for talks boosting the chances for a resolution to the tariff war after weeks of uncertainty and escalation, Bloomberg says. Vice Premier Liu He agreed to the visit in a phone call on Thursday morning Beijing time with Treasury Secretary Steven Mnuchin and U.S. Trade Representative (USTR) Robert Lighthizer, China’s commerce ministry said. Lower-level officials will have “serious” discussions this month to prepare for the talks, which had originally been expected to take place in September. In addition, the U.S. and Japan are “still thrashing out details of a trade deal” that the administration hopes to sign this month, including the crucial issue of whether he’ll refrain from imposing higher tariffs on imported cars, Bloomberg said. The president, at the Group of Seven meeting in France last month, celebrated what he called a “major deal” that he and Prime Minister Shinzo Abe would sign on the sidelines of the United Nations General Assembly, starting later this month in New York – although observers also note that so far the agreement only includes “broad strokes” of a trade deal. So, we will see. It appears that the fall will mean increasing tensions over old topics like the economic outlook, trade and spending levels and priorities and that even details about the expected storm tracks can be highly controversial. The result is a broad array of constantly evolving debates that producers should watch closely as they intensify, Washington Insider believes.
| Rural Advocate News | Friday September 6, 2019 |
Judge Orders Anheuser-Busch to Remove ‘No Corn Syrup’ Labels U.S. District Court Judge William Conley Wednesday ruled that Anheuser-Busch has to stop using packaging on 12-packs and 24-packs of Bud Light that say “No Corn Syrup” once they run out of the packaging that it has or by March 2020, whichever comes first. The decision came in the case filed by MillerCoors, which charged the statement on the packaging implies that Miller Lite and Coors Light contain corn syrup. MillerCoors uses corn syrup in the fermentation process but the final product does not contain corn syrup. "In light of the limited number of beers in the light beer market, with Bud Light, Miller Lite and Coors Light accounting for almost 100 percent of sales, that same jury could also find a substantial segment of consumers would infer that Bud Light's principal competitors contain corn syrup," Conley said in his decision. Anheuser-Busch said in a statement that it looked forward to defending its position in court, saying that MillerCoors was “resisting consumer demands for transparency in the ingredients used to brew its beers.”
| Rural Advocate News | Friday September 6, 2019 |
Near-Steady US July Ag Exports Outpaced By Import Growth U.S. agricultural trade registered a deficit for July, marking three out of the last four months with trade red ink. U.S. ag export values held basically steady in July at $10.79 billion against imports that rose to $10.91 billion for the $115 million monthly deficit. With the cumulative ag exports in Fiscal Year (FY) 2019 at $114.0 billion and imports at $110.4 billion, it suggests USDA’s recently updated outlook for FY 2019 ag exports to be close as imports would have to average just under $9.5 billion in August and September and exports would have to average $10.25 billion to meet the export forecast of $134.5 billion and imports at a record $129.3 billion. Typically, imports register their lowest mark of the fiscal year in September. It would appear the import forecast from USDA is at risk for being too low at $129.3 billion. The value of ag imports has not registered back-to-back months of less than $10 billion since FY 2017. The current forecast ag trade surplus of $5.2 billion would be the smallest since it was $4.57 billion in FY 2006.
| Rural Advocate News | Friday September 6, 2019 |
Friday Watch List Markets USDA's weekly report of grain export sales will be released at 7:30 a.m. and will show exports for all but the final two days of 2018-19. At the same time, the U.S. Labor Department will release non-farm payrolls and the U.S. unemployment rate for August, important factors for the Federal Reserve's next rate decision on September 18. Weather remains closely watched with dry conditions noted in the central Corn Belt. Weather Friday will be dry over most crop areas. Some light showers will form in the Great Lakes and interior Northwest. Category 1 Hurricane Dorian will bring heavy rain to the mid-Atlantic coast.
| Rural Advocate News | Thursday September 5, 2019 |
Citibank Reports on Trade War: No End Before 2020 Election A top U.S. investment bank sees no conclusion to the U.S.-China trade war before the 2020 presidential elections. In a new report, Citibank says the “Implied probabilities of a 2020 recession are now high enough to warrant caution,” due to the ongoing trade war. The report suggests U.S. economic metrics will “likely deteriorate further” as the trade war continues. CNBC reports Citi’s shift represents a departure from others on Wall Street who see a trade deal likely happening before the election next year. Farmers recently reported similar expectations in the August Ag Economy Barometer released by Purdue University and CME Group this week, but that changed slightly last month. Of 400 farmers surveyed, 71 percent say a quick resolution is unlikely, down from 78 percent in July. Agriculture is taking the brunt of trade war retaliatory tariffs from China. And, China appears poised to hold out to see if President Trump will be reelected or not, potentially shifting the U.S. negotiation views and tactics. ************************************************************************************* Trump Says Tariff Income to Help Hurricane-Damaged Farms President Donald Trump told reporters Wednesday that money the U.S. receives from tariffs on China will help farmers recover from Hurricane Dorian. Trump says, "we've taken in many billions of dollars of tariffs from China and we will have a lot of money to be helping our farmers along the coast if they get hit." The President made the statement as part of an update to members of the press inside the Oval Office. Trump says China has paid for most of the tariffs, adding, "We have a lot of money to help our farmers." Trump pointed to the trade mitigation payments to farmers, as well, saying he is making up the trade war impact “dollar-for-dollar” to farmers. The brunt of the hurricane appeared to spare Florida and was expected to travel up the Eastern Seaboard, hitting the Carolinas Thursday and Friday. The North Carolina Agriculture Department says hurricane Dorian “creates an imminent threat of severe economic loss of livestock, poultry and crops ready to be harvested.” ************************************************************************************* ARC, PLC Enrollment Open The Department of Agriculture this week opened enrollment for the Agriculture Risk Coverage, and Price Loss Coverage programs. Agriculture Risk Coverage, known as ARC, provides income support payments on historical base acres when actual crop revenue declines below a specified guarantee level. Price Loss Coverage, known as PLC, provides income support payments on historical base acres when the price for a covered commodity falls below its effective reference price. Agriculture Secretary Sonny Perdue called the programs “the bedrock of the farm safety net,” for crop farmers. Updated provisions in the 2018 Farm Bill allow producers with an interest in a farm to enroll and elect coverage in crop-by-crop ARC-County or PLC, or ARC-Individual for the entire farm, for program year 2019. For crop years 2021 through 2023, producers will have an opportunity to make new elections. Farm owners cannot enroll in either program unless they have a share of interest in the farm. Interested producers must sign up for either program by March 15, 2020. ************************************************************************************* Lawsuit Alleges Chicken Processors Fixed Wages A class-action lawsuit claims 18 chicken processors have conspired to fix wages for workers. Three poultry plant workers filed the lawsuit last week claiming the industry has conspired to fix and depress wages since 2009. The lawsuit named defendants including chicken processors Perdue Farms, Tyson Foods, Keystone Foods, and Pilgrim’s Pride, among others. Meat industry publication Meatingplace reports the lawsuit claims leadership for the processors held “off the books” meetings to fix wages and benefits, along with exchanging wage data. The companies named in the lawsuit operate approximately 200 processing plants in the United States, employing hundreds of thousands of workers, and produce roughly 90 percent of the nation’s chicken processed chicken. The lawsuit also claims the price-fixing has held employees of processors in poverty. A spokesperson for Perdue Farms told Meatingplace “we do not believe this suit has any merit,” adding employees receive wage increases, and that the company makes adjustments as wage trends shift in the United States. ************************************************************************************* NCGA Supports EPA’s Interim Decision on Glyphosate Registration The National Corn Growers Association recently submitted comments in support of the Environmental Protection Agency's proposed interim registration review decision for glyphosate. EPA is required to review pesticide registrations every 15 years to comply with the Federal Insecticide, Fungicide and Rodenticide Act, but may choose to issue interim decisions as needed to account for completed risk assessments and the availability of new data. Lynn Chrisp, NCGA president from Nebraska, says NCGA “appreciate the EPA’s recognition of the sound science behind this product in its interim review decision.” In the decision at hand, EPA states it is issuing an interim decision to move forward with aspects of the registration review that are complete, including the human health and ecological risk assessments. Glyphosate continues to be the cornerstone for comprehensive and sustainable weed management, Chrisp noted, though growers understand that a diverse plan is necessary for both season-long control and resistance management. The EPA expects to issue its final registration decision for glyphosate once the Endangered Species Act evaluation is complete. ************************************************************************************* Alltech Forms Strategic Research Alliance for Sustainable Beef Production Alltech and Archbold Biological Station’s Buck Island Ranch in Florida recently formed a research alliance to develop beef management approaches. Specifically, the partnership seeks to increase the quality and quantity of beef produced in subtropical regions while maintaining and enhancing the environment. The collaboration brings together scientists from two different disciplines, ecologists from Archbold and ruminant nutritionists from Alltech, to understand the impact that cattle production has on an ecosystem. A spokesperson for the program says the research may lead to improved supplemental feed strategies and reducing cattle methane emissions. The research at Buck Island Ranch has long been focused on the relationships between agricultural production, management and natural resources, including water and soils, as well as biodiversity and addressing threats like invasive species and climate change. An Alltech spokesperson says the collaborations aims to demonstrate that the maintenance of the ecosystem is a critical factor in sustainable beef production and also to show how cattle can be a critical part of maintaining natural ecosystems.
| Rural Advocate News | Thursday September 5, 2019 |
Washington Insider: Global Consumers and Growing Economic Tensions The gap in perceptions of trade policy impacts between administration advocates and officials from export-dependent industries continues to grow, Bloomberg says this week. While the Trump administration emphasizes the impact of growing economic pressure on China, many analysts are focusing heavily on emerging threats to global demand. Bloomberg thinks these are intensifying at the same time business confidence and investment are weakening in many key markets. Consumers have been providing the main drivers of global growth for much of this year. And, while recent retail sales growth has been strong, “there are signs that could soon change, as weakness in manufacturing seeps into hiring and financial markets tighten amid the trade war.” Both forces could lead households to retrench, fanning fears that the world economy is heading to recession, Bloomberg says. Morgan Stanley economists are already warning that American consumers are all that stand in the way of a U.S. contraction and their counterparts at JPMorgan see global employment growth remaining around the 1% of the last quarter, a sharp slowdown from the previous pace. “It would be misguided to believe that manufacturing weakness is not going to filter through to the rest of the economy,” even though factories are a relatively small share of U.S. output, said Gregory Daco, chief U.S. economist at Oxford Economics. A big warning came last week, when concerns about tariffs and inflation helped push down the University of Michigan’s U.S. economic sentiment index by the most in almost seven years. If that’s the start of a new fault line in the global economy centered on consumers, that spells deeper trouble ahead for world growth, Bloomberg thinks. A key risk is the potential unraveling of the solid labor-market story across advanced economies as surveys show employment at factories falling around the world. Germany, at risk of recession, has seen initial signs of weakness in its labor market. UK sentiment is being battered by Brexit uncertainty and Asian economies such as Korea and Indonesia have recorded declines in consumer sentiment. In the U.S., the Institute for Supply Management’s factory index indicates manufacturers are cutting jobs. Monthly U.S. jobs figures from the Labor Department are due Friday and will be watched closely. Bloomberg says its own economists are expecting that consumer spending will be “the main driver of growth in the second half, so barometers of household demand, such as sentiment, savings patterns and income growth will be major focal points in the medium term. For this reason, the cooling in the ISM employment sub-index bears watching,” according to Carl Riccadonna, Bloomberg’s chief U.S. economist. For central bankers, the question is whether other parts of the economy can keep riding out the storm that’s been largely isolated in manufacturing--or a broader “infection” is inevitable. How they gauge that spillover threat could be central to how much stimulus they need to pump into their economies. Federal Reserve Bank of San Francisco President Mary Daly noted the contrast in the economy last week, saying that uncertainty has hurt business investment but that domestic demand looks “really solid.” U.S. consumer spending rose 0.6% in July, beating estimates, according to a report on Friday, following the best quarter in more than four years. In the euro area, retail sales are rising at about a 2% year-on-year pace, slightly faster than the average in 2018. But the situation could shift as the punches to the global economy keep coming—such as the administration’s escalation of the U.S.-China trade war along with weaker corporate earnings, a manufacturing pull-back and Brexit. In the U.S., the University of Michigan gauge showed how the trade war may have a psychological effect, with tariffs spontaneously mentioned by one-in-three consumers. Pressured by a trade spat of its own with Japan, along with ongoing labor-market weakness, Korea’s sentiment gauge fell in August to its worst level since the start of 2017. Unemployment at a 45-year high is seriously crimping consumption in India, where car sales plunged the most in almost two decades in July. At its last policy meeting, the European Central Bank noted weakening hiring intentions and “the question was raised as to how long the job market would still be posting positive surprises.” U.S. electronics retailer Best Buy Co. last week trimmed its guidance because of “general uncertainty related to overall customer buying behavior in the back half of the year.” So, we will see. There are broad expectations that the Fed will cut interest rates at least some in the near future—even as a U.S.-China trade deal appears increasingly unlikely. However, the administration-Fed squabble appears likely to continue and even intensify and should be watched closely as it persists, Washington Insider believes.
| Rural Advocate News | Thursday September 5, 2019 |
Trump Says Biofuels Plan Coming In Next Two Weeks President Donald Trump now says a set of biofuel policy changes will be coming in the next two weeks. Previously, the plans were rumored to be announced this week at an event in the Midwest. “Making great progress for our Farmers. Approved E15, year-round. Big additional list to be submitted & approved within two weeks. Will be even better for Ethanol, and we save our small refineries!” Trump tweeted earlier this week. Biofuel proponents want an increase in 2020 blending requirements to offset small refiner exemptions (SREs) while refining advocates are urging Trump not to move forward with any increases. For his part, Trump said he will deliver a “giant package” of changes, adding that “the farmers are going to be so happy when they see what we are doing for ethanol.” Currently, USDA Secretary Sonny Perdue, EPA Administrator Andrew Wheeler and White House aides are working out the details of the plans – which aim to boost both corn ethanol and soy-based biodiesel. Senate Environment and Public Works Committee Chairman John Barrasso, R-Wyo., warned President Trump this week not to move forward with the biofuel policy proposals currently under consideration, saying they “risk closing refineries and killing thousands of jobs.”
| Rural Advocate News | Thursday September 5, 2019 |
NRCS Details Updated RCPP Conservation Program The launch of the updated Regional Conservation Partnership Program (RCPP) was announced by USDA's Natural Resources Conservation Service (NRCS) this week. The program now includes changes from the 2018 Farm Bill. NRCS said it is accepting proposals for RCPP projects seeking fiscal year (FY) 2019 funding, with submissions due by December 3, 2019. Partners can request between $250,000 and $10 million in funding. In all, $300 million is available for FY 2019, NRCS said. NRCS noted the updated RCPP now has dedicated funding, rather than having to rely on monies from other conservation programs like the Environmental Quality Incentives Program (EQIP). The move to dedicated funding was among the changes brought by the 2018 Farm Bill. The changes will help "[simplify] rules for partners and producers," NRCS said. Meanwhile, the fewer funding pools involved should "make the submission and approval process easier," the agency added.
| Rural Advocate News | Thursday September 5, 2019 |
Thursday Watch List Markets Weekly jobless claims and the U.S. Drought Monitor will be released at 7:30 a.m. CDT, but USDA's weekly export sales report will not come out until Friday morning, due to this week's holiday schedule. The Department of Energy will release all its weekly inventories, starting at 9:30 a.m. CDT and will include ethanol and natural gas. Any changes in weather or trade news will continue to be watched closely. Weather Thursday features mostly dry and warm conditions in primary crop areas, with only light rain in the western Midwest. Meanwhile, category 3 Hurricane Dorian will bring heavy rain, strong winds and storm surge to the Carolina coast.
| Rural Advocate News | Wednesday September 4, 2019 |
Trump: China Talks Going “Very Well” President Donald Trump offers an optimistic view of trade talks with China. Trump on Twitter Monday proclaimed, "We are doing very well in our negotiations with China." Over the weekend, new tariffs were enacted by the United States and China, yet negotiators from China could still visit the U.S. this month. A spokesperson for China’s Foreign Affairs Ministry says, “What matters the most at this moment is creating necessary conditions for ongoing consultations.” With the implementation of new tariffs, the American Farm Bureau Federation is urging both sides to focus on trade negotiations. AFBF President Zippy Duvall says the Chinese tariffs are “no surprise,” but are “no more welcome than before.” AFBF says farmers welcome the trade mitigation payments that are keeping some farms in business as the trade war continues, but says many “cannot withstand continued uncertainty in trade.” The latest round of tariffs is expected to hit U.S. consumers the most, as practically every product shipped to the U.S. will face additional taxes. ************************************************************************************ August Ag Economy Barometer Falls Farmer concern regarding low prices and the farm economy led to a sharp drop in the August Ag Economy Barometer. The Perdue/CME Group economic measure fell 29 points last month to a reading of 124. The barometer’s decline was attributed to declines in both the Index of Current Conditions, which dropped 19 points, and the Index of Future Expectations, which fell 34 points below its July reading. A reading greater than 100 still indicates positive sentiment, while a reading below indicated negative sentiment. Weaker views were fueled in part by both crop and livestock price declines that took place during late July and early August. Meanwhile, producers’ concerns about the future of the farm economy led to a more negative outlook on the advisability of making capital investments and on the short-term farmland value outlook. Meanwhile, farmers in August were slightly more optimistic the trade dispute with China will be resolved soon, although many still think resolution of the dispute will not come quickly. ************************************************************************************* Farm Income to Increase in 2019 The Department of Agriculture predicts farm income will rise in 2019, despite challenges impacting the farm economy. Last week, USDA reported inflation-adjusted U.S. net cash farm income is set to increase $5.8 billion, up 5.4 percent, to $112.6 billion. U.S. net farm income, a broader measure of farm sector profitability that incorporates noncash items including changes in inventories, economic depreciation, and gross rental income, is forecast to increase $2.5 billion, or 2.9 percent, from 2018 to $88.0 billion in 2019. USDA says the forecast increases are due to a combination of lower production expenses, which are subtracted out in the calculation of net income, as well as increases in government payments and farm-related income. The trade aid payments are expected to more than offset the forecast decline in cash receipts. If the forecast holds true, USDA says net farm income would be 2.3 percent below the 2000–2018 average, but net cash farm income would be four percent above its 2000–2018 average. ************************************************************************************* 2020 Planting Intentions Include More Corn, Soybeans A survey by Farm Futures magazine reports farmers are planning to plant more corn and soybeans next year. The 2020 planting intentions survey found farmers intend to plant 94.1 million acres of corn next year, up 4.5 percent from the 90 million planted this year, as reported by the Department of Agriculture last month. Farmers also reported to Farm Futures their intention to plant 83.6 million acres of soybeans next year, nine percent more than 2019, but 5.6 million below the 89.2 million acres planted in 2018. Hard red winter wheat seedings are expected to increase 1.3 percent to 23 million acres, and soft red winter wheat seedings could also increase. Meanwhile, farmers in cotton-growing states are planning to reduce cotton seedings by 8.7 percent to 12.7 million acres next spring, and sorghum could gain 9.3 percent to reach 5.8 million acres planted. However, given the wet spring in 2019, and the number of acres not planted, some of the survey results should come as no surprise. ************************************************************************************* NCC: RFS Threatens Animal Feed Prices The National Chicken Council wants the Environmental Protection Agency to reduce volumes proposed in the Renewable Fuel Standard. Comments submitted to the EPA last week by NCC claim that given the current crop year, the volume proposal is “overly aggressive, overly reliant on corn-based ethanol, and will likely cause disruptions to the nation’s feed supply.” NCC President Mike Brown says the volumes should be reduced “to more accurately reflect the availability of feedstock and the usage rate of biofuels.” The organization claims that since the RFS began in 2007, broiler producers have faced $68.5 billion in higher feed costs for the production of broiler meat. NCC believes that the potential for supply disruption and a resulting similarly destructive pattern as 2008, 2012 and 2013, poses a threat to the broiler industry during the 2020 RFS compliance year and 2019/2020 crop year. Brown says in 2008 and 2012, chicken producers were denied protection from the impact of the RFS mandate during times of market volatility. ************************************************************************************* Alternative Meat Makers Form Coalition Five companies creating meat imitating products have formed a coalition for educating consumers and advocating for market access. the Alliance for Meat, Poultry & Seafood Innovation was founded to allow the sector to “speak with a unified voice,” according to a news release. Founding member companies include BlueNalu and Finless Foods, makers of cell-based/cultured seafood, and Fork & Goode and JUST, makers of cell-based/cultured meat and poultry, and Memphis Meats, which is making cell-based/cultured meat, poultry and seafood. The coalition seeks to educate consumers about their products, and create a clear path to market for their products. Coined as fake meat by the animal agriculture sector, groups such as the National Cattlemen’s Beef Association have called for science to drive the regulatory framework, current being crafted by federal agencies. The new coalition will soon begin lobbying lawmakers and the Department of Agriculture regarding the framework. The coalition aims to “create an environment for the industry that will support continued innovation for years to come.
| Rural Advocate News | Wednesday September 4, 2019 |
Washington Insider: Helpful Farm Trade Aid Bloomberg and other urban media are taking note of the effort the administration is making to downplay ag producers’ economic problems with weak markets as the trade war with China escalates. An example is the recent USDA report that “farmers are doing better than previously thought,” as new forecasts show farm profits rising 5% in 2019--the best in five years “because of the president’s trade aid program.” The report and its “more favorable portrait of agricultural finances” comes as the administration faces increasing criticism from farmers over losses from the president’s intensifying tariff war with China. Bloomberg notes that farmers openly challenged Agriculture Secretary Sonny Perdue last month at an event in Minnesota. USDA emphasized that projected net farm income this season will reach $88 billion, up from $84 billion last year. It called the projection “a rosier financial picture for farmers than prior estimates, which didn’t anticipate the level of aid” the administration would provide to compensate for lost sales to China, said Jeffrey Hopkins, the economist who supervised the forecast. Hopkins said that the previous forecast, made in March, also didn’t include the level of aid payments farmers received for being unable to plant because of floods. However, producers were not exactly thrilled by the news, Bloomberg reported. For example, Rob Larew, vice president of public policy for the National Farmers Union, the second-largest general farm organization, said the boost in profits “belies the economic difficulties that most farmers are still facing” and relies entirely on aid from taxpayers. “Though those payments are helpful in the short term, they ultimately are not a sustainable solution to the ongoing farm crisis,” Larew said. “Unless the government plans to either keep throwing money at these problems or implement real solutions, farm income will likely fall again next year.” John Newton, chief economist for the American Farm Bureau Federation, the largest general farm group, said a 13% increase in farm bankruptcies in the 12 months through June and an uptick in delinquent farm loans suggest a tightening financial squeeze. “A lot of real-time indicators don’t show signs of a stronger farm economy, but you can’t deny the impact of the trade aid,” Newton said, adding that most farmers haven’t yet received payments from this year’s trade assistance package. The revised forecast suggests farmers will have their most profitable year since 2014—but that the projection is still 2.3% below average farm profits since 2000 and 36% below their net income in 2013 when adjusted for inflation, Bloomberg said. Farmers will receive $19.5 billion in direct government aid by year-end, the most since 2005, according to the projections. That doesn’t include an additional $10.5 billion in federally subsidized crop insurance payments forecast for the year. Rural voters are a key constituency for President Donald Trump as he heads into the 2020 election and the farm economy was under stress even before the trade war with China. The administration announced $16 billion in trade aid for farmers this year after providing $12 billion last year. Congress also appropriated $3 billion in disaster assistance for farmers on top of payments they receive from existing farm subsidy programs for those who were unable to plant. The new USDA projections also include big upward revisions for net farm income for last year and this year based on a 2018 survey on farm production practices and finances. The survey showed farmers’ expenses were considerably lower than previously estimated, Hopkins said. The USDA had previously estimated last year’s farm profits at $63.1 billion. The 2019 projection of $88 billion is up from a $69.4 billion forecast released in March. Many producers have been critical of the sweeping scope of the “get tough” trade policies that include products and markets like those for many farm products that have been built steadily over many years and which are not been the focus of the most damaging Chinese trade policies, observers say. The administration’s “trade aid” payments are controversial in some quarters and are widely seen as inadequate by producers. Still, such subsidies have been used by many administrations over decades — with varying degrees of success – that create policy and political issues that should be watched closely as they intensify, Washington Insider believes.
| Rural Advocate News | Wednesday September 4, 2019 |
USDA Announces 2019 ARC, PLC Enrollment Now Open Producers can now enroll in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2020 crop year, USDA announced Tuesday (September 3). Enrollment for the two programs will be open through March 15, 2020. If no election is made by the deadline, it will default "to the current elections of the crops on the farm established under the 2014 Farm Bill," USDA said. No payment will be earned in 2019 if the election defaults, the department noted. Under changes introduced by the 2018 Farm Bill, farmers may enroll and elect program year 2019 coverage in crop-by-crop ARC-County or PLC, or ARC-Individual for the entire farm. The 2019 election will apply for both the 2019 and 2020 crop years. Farmers will then have an opportunity to change their program elections in crop years 2021 through 2023. Once 2019 crop year elections are completed, producers can submit an enrollment contract for the 2020 crop year beginning October 7, 2019 and ending June 30, 2020. "The ARC and PLC programs, in combination with crop insurance, are the bedrock of the farm safety net for crop farmers and something I hear about frequently on the road," USDA Secretary Sonny Perdue said in a statement. "This exciting opportunity for enrollment in these programs marks the first time folks will have the opportunity to switch their elections since the 2014 Farm Bill was implemented. I am pleased to add that today’s announcement means our staff met yet another major Farm Bill implementation goal and they are continuing to move full speed ahead," he concluded.
| Rural Advocate News | Wednesday September 4, 2019 |
China Hits Back at New US Tariffs with WTO Complaint China is challenging the latest round of U.S. tariffs targeting $110 billion in Chinese goods that took effect over the weekend, in a new complaint filed at the World Trade Organization (WTO). The U.S. asserts that the duties, which it imposed over alleged Chinese theft of U.S. intellectual property, are not subject to review by WTO – but China repeatedly rejected that assertion. In a statement, the Chinese Commerce Ministry said the U.S. reneged on an agreement not to impose new tariffs that was reached at the June G20 summit in Osaka, Japan. That, in turn, prompted China to lodge the complaint at WTO, the ministry said. The U.S. and China have 60 days to resolve the dispute. If they are unable to reach a mutually agreed solution China could then request the establishment of a WTO dispute panel to adjudicate the matter.
| Rural Advocate News | Wednesday September 4, 2019 |
Wednesday Watch List Markets At 7:30 a.m. CDT, the U.S. Census Bureau will report on the U.S. trade deficit and give USDA more specific export data to be released later Wednesday morning. Weather will continue to be monitored for late-developing row crops. Trade remains a touchy topic for traders after the most recent increases in tariff levels. Weather Wednesday will be dry and mild over all primary crop areas. Hurricane Dorian off the southeastern U.S. coast, and tropical storm Fernand in the far western Gulf of Mexico will not threaten most agricultural interests.
| Rural Advocate News | Tuesday September 3, 2019 |
Grassley: Administration Considering “Handful” of EPA Waiver Fixes Since Donald Trump took office, the Environmental Protection Agency has issued 85 exemptions to oil refineries allowing them to stop blending ethanol into their fuel. NBC News Dot Com says that’s a “staggering increase” from previous administrations. The waivers have been given to some of the nation’s biggest oil corporations, including Chevron and Exxon. Iowa Senator Chuck Grassley, a Trump ally, ripped the administration over the waivers. “They screwed us when they issued 31 waivers compared to less than 10 waivers in all of the Obama years,” he says. “What’s bad isn’t the waiver, it’s that it’s being granted to people who really aren’t going through any hardship.” During a recent conference call, Grassley says the administration is looking at “four-or-five things” to help make up for the damage inflicted on U.S. farmers by a large number of small-refinery waivers. Grassley says there is one thing above all others that matters to farmers. “We need the reallocation of every gallon that was waived by the EPA, getting them added back into the Renewable Fuels Standard requirement,” he said. “I welcome the administration’s admission that the EPA’s move was wrong and taking steps to try and right it.” ********************************************************************************************** While Farmer Frustration Grows, They Still Seem to Support Trump While farmer frustration with the Trump Administration continues to grow because of the trade war with China and small refinery waivers under the RFS, he still seems to have their support. Bloomberg says support for the president bounced back this year, with 67 percent of farmers in a Farm Futures Survey saying they’ll support his re-election in 2020. That number is up from last year, when Trump’s rural support dropped to under 60 percent, shortly after China introduced retaliatory tariffs on American soybeans. In spite of the difficulties, growers still back Trump in his battle to reduce the trade deficit with countries like China. A farmer in southern Minnesota spoke with Bloomberg, saying he didn’t like it but he understands the need to get a better trade deal for the U.S. Only six percent of farmers who voted for Trump say they wouldn’t back him if the elections were held today. Even two percent of Hillary Clinton voters in 2016 now say they’ll support Trump in 2020. Farmers cite other issues outside of agriculture that help cement their support for the president, including health care, immigration, and education. ********************************************************************************************** China Buying More Ag Goods from the Philippines China says it may import more fruits and other agricultural products from the Philippines in the years ahead as the two countries enjoy close ties. The Philippine Trade Minister, Ramon Lopez, says Chinese President Xi (Zhee) Jinping made that comment during a meeting with the Philippine president in Beijing last week. Philippine government officials were happy to hear that as the country has a goal of balancing the trade deficit with China. Lopez said in a statement that, “President Xi reiterated China’s policy to help balance trade with the Philippines by buying more goods, especially agriculture and Agri-based products, and industrial goods.” Xi also says, “China is willing to import more high-quality fruits and agricultural products from the Philippines and will send experts to the Philippines to teach agricultural and fishery technology.” A wide trade gap exists between the two countries. China was the Philippines biggest supplier of imported goods with a 23 percent share of total imports as of last June. Meanwhile, China was only the third-largest importer of products from the Philippines. ********************************************************************************************** U.S. Cattlemen’s Association Wants “Transparency Summit” Late last week, the United States Cattlemen’s Association sent letters to the U.S. Department of Agriculture and the Commodity Futures Trading Commission. The USCA is requesting each department to bring together cattle market participants and stakeholders to discuss concerns related to price transparency and true price discovery. The letters were specifically addressed to USDA Secretary Sonny Perdue and CFTC Chairman Heath Tarbert. The USCA sent the letter in response to the untimely fire at the Tyson Foods Beef Plant in Holcomb, Kansas. U.S. cattle producers have seen unprecedented disruption in the cattle marketplace over the last several weeks since the fire took place. U.S. Cattlemen want two separate Cattle Industry Summits that would directly address issues related to the Mandatory Price Reporting Program. Packers and Stockyards Act Violations and definitions, as well as cattle futures contracts. USCA says it looks forward to working with both the USDA and the CFTC to bring together cattle industry stakeholders in the months ahead. ********************************************************************************************** China Taking Steps to Boost Pork Supplies The Chinese Commerce Ministry says it will look at ways to boost pork imports and will look at releasing frozen pork, beef, and mutton from state reserves. Reuters says the goal is to increase the supply of meat in the domestic market. The moves will come as pork prices hit record highs in China because of the African Swine Fever epidemic that has killed millions of pigs in the country’s herds. The world’s top pork consumer has seen its hog herd shrink by as much as a third over the past year. Pork prices have soared since June. A Commerce Ministry spokesman says the country will “continue to encourage the expansion of pork imports.” Imports are up 36 percent over the first seven months of this year. China is looking at other sources for pork beside the U.S. as the trade war continues between the two largest economies in the world. Beijing has agreed to start importing pork from Argentina this year. They’re also expected to approve additional plants for export in Brazil and Great Britain. China also will release some meat from its reserves to help stabilize supplies. ********************************************************************************************* U.S. Exporters to Join McKinney on Trade Mission to Canada Ted McKinney, USDA Under Secretary for Trade and Foreign Agricultural Affairs, will lead a trade mission to Canada September 3-6. He’ll be accompanied on the trip by 41 U.S. agribusinesses and associations who are looking to expand sales to the United States’ top agricultural export markets. “With the new U.S.-Mexico-Canada Agreement poised for passage in Congress, this is a great time for U.S. agricultural exporters to shore up ties with our neighbors in the north,” McKinney says. “Our two nations already enjoy the world’s largest bilateral agriculture trade relationship, with almost $120 million worth of food and farm products crossing the border every day.” McKinney says the USMCA will make this good relationship even better and they’re looking forward to meeting with current and potential customers in Toronto and Montreal. “We’ll be exploring new and expanded business opportunities while we’re there,” he adds. McKinney will be joined on the trip by officials from multiple state departments of agriculture. Other companies and organizations on the trip include the American Peanut Council, the American Sweet Potato Marketing Institute, the Food Export Association of the Midwest, and many more.
| Rural Advocate News | Tuesday September 3, 2019 |
Washington Insider: More Trade Friction Much of the Chinese media is continuing to shrug off President Trump’s latest escalation of the tariff war as state sources, especially, signal that the government is ready to weather the economic turbulence. For example, Bloomberg says that Chinese editorials and commentaries since the administration slapped tariffs on roughly $110 billion in Chinese imports on Sunday have focused on the impact the latest tariff hikes will have on U.S. consumers. In addition, late Sunday, the State Council, or cabinet, released a statement pledging to increase economic support if needed, the report said. Chinese officials have yet to give a clear sign that they intend to carry through a plan for in-person negotiations in Washington this month, a meeting planned before the latest round of tit-for-tat measures. Few column inches were dedicated to the trade war Monday and there was little evidence of any change in stance. However, the theme was clear: “It is time the U.S. administration reconsidered its poorly thought out China-bashing moves,” an editorial in the China Daily argued. “Working to secure a trade deal would be a more fruitful approach.” The 15% U.S. duty hit consumer goods ranging from footwear and apparel to home textiles and certain technology products like the Apple Watch. A separate batch of about $160 billion in Chinese goods--including laptops and mobile phones--will be hit with 15% tariffs on Dec. 15. The new tariffs imposed over the weekend are “a turning point in the trade war” with the U.S., an editorial in the Communist Party’s tabloid Global Times wrote Sunday evening. “The U.S. economy cannot sustain its superficial prosperity and is facing a bigger risk of decline,” the editorial said. “The Trump administration has shot Americans in the foot. When more and more Americans feel the pain, maybe it will be time for Washington to recover rationality.” While the Trump administration has dismissed concern about a protracted trade war, business groups are calling for a tariff truce and the resumption of negotiations—and talks scheduled for Washington in September are still on, the President told reporters Sunday. “We are talking to China, the meeting is still on,” he said. The President repeated the assertion that China, not the U.S., is “paying” for the tariffs and said that farmers hurt by Beijing’s retaliation are being made “more than whole” by federal payments. Chinese media disagree with both statements, as do many in the United States. While president Trump has repeatedly said China pays for U.S. tariffs on Chinese sales, many companies and economists report that U.S. importers bear the cost, as do consumers. The non-partisan Congressional Budget Office in August projected that by 2020, administration tariffs and its trade war will reduce the level of real U.S. GDP by about 0.3% and reduce average real household income by $580. That followed a JPMorgan Chase & Co. note to clients estimating that the latest round of tariffs will increase the average cost per U.S. household to $1,000 a year--up from $600 for duties enacted last year. That estimate is in the low range because it was based on a duty rate of 10%, before it was increased it to 15%. The tariffs are also harming the global economy, Bloomberg says. The International Monetary Fund in July further reduced its world growth outlook, already the lowest since the financial crisis. China’s retaliation took effect as of 12:01 p.m. Sunday in Beijing, with higher tariffs being rolled out in stages on a total of about $75 billion of U.S. goods. Its target list strikes at the heart of the President’s political support--factories and farms across the Midwest and South at a time when the U.S. economy is showing signs of slowing down. The Sept. 1 duty boosts include an extra 10% on American pork, beef, and chicken and various other agricultural goods, while soybeans will get hit with an extra 5% tariff on top of the existing 25%. Starting in mid-December, American wheat, sorghum, and cotton will also get a further 10% tariff. While China imposed a new 5% levy on US crude oil starting from September there was no new tariff on liquefied natural gas. The resumption of a suspended extra 25% duty on U.S. cars will resume Dec. 15, with another 10% on top for some vehicles. With existing general duties on autos taken into account, the total tariff charged on U.S.-made cars would be as high as 50%. Gary Shapiro, president of the Consumer Technology Association, said the Trump administration’s approach of using tariffs to pressure China into a deal has backfired and many producer groups now appear to agree. So, we will see. It appears to be increasingly difficult for the administration to make its case that the tariffs only hurt the Chinese, or that its trade aid farm programs are fully successful. Still, both sides are deeply dug in on their current policies and are resisting change—as the debate continues to rage. This is an important fight; one producers should watch closely as it proceeds, Washington Insider believes.
| Rural Advocate News | Tuesday September 3, 2019 |
USDA's McKinney To Lead Canada Ag Trade Mission USDA Undersecretary for Trade and Foreign Agricultural Affairs Ted McKinney is leading a trade mission to Canada Sept. 3-6, the department announced. He will be accompanied by representatives from 41 U.S. agribusinesses and associations looking to expand sales to the United States’ top agricultural export market. "With the new U.S.-Mexico-Canada Agreement (USMCA) poised for passage, this is a great time for U.S. agricultural exporters to be shoring up ties with our neighbors to the north,” McKinney said. "Our two nations already enjoy the world’s largest bilateral agricultural trade relationship, with almost $120 million worth of food and farm products crossing the border every day," McKinney noted. "The USMCA will make this good relationship even better, and we’re looking forward to meeting with current and potential customers in Toronto and Montreal to explore new and expanded business opportunities."
| Rural Advocate News | Tuesday September 3, 2019 |
Refiners Critical Of Trump Plans to Boost Biofuels Executives for major oil refiners urged President Donald Trump not to move forward with proposed changes to the Renewable Fuel Standard (RFS) program meant to boost biofuel usage. The biofuel moves are meant to compensate for the Environmental Protection Agency's (EPA) granting of small refinery exemptions (SREs). Trump is expected to boost federal mandates for production of corn-based ethanol and biodiesel in response to complaints from farmers about the administration’s policy of issuing a growing number of the refinery waivers. "The fixes that are being suggested by the Department of Agriculture and the biofuels community that would raise the conventional biofuel mandate will do nothing to increase domestic ethanol usage, but will only give incentives for more imported biodiesel," said CEOs Joseph Gorder of Valero, Gary Heminger of Marathon and Jeff Ramsey of Flint Hills Resources, in a letter to President Donald Trump. The companies led by the three chief executives produce nearly one fifth of U.S. ethanol. The refiners also pushed back on the suggestion that ethanol demand has been undermined by EPA waivers exempting some small refineries from biofuel-blending requirements, saying the notion is "simply untrue." Oil industry groups may file lawsuits to stop the policy changes under discussion at the White House if they cannot persuade Trump to abandon the plans, said American Fuel and Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson. "It’s never over until it’s over with this administration," Thompson remarked. He argued the administration cannot "unilaterally" move forward with the changes now under consideration and said the industry will fight them through EPA's rulemaking process and in court if necessary. Trump is expected to announce the biofuel package next week in the Midwest. Thompson and American Petroleum Institute (API) President and CEO Mike Sommers also penned a joint letter to President Trump urging him not to move forward with the changes and disputing claims from biofuel proponents that SREs are causing demand destruction for ethanol.
| Rural Advocate News | Tuesday September 3, 2019 |
Tuesday Watch List Markets The first day back from Labor Day weekend, traders will be checking the latest forecasts and noting any news about trade that might have developed. A report on U.S. manufacturing is due out at 9 a.m. CDT, followed by USDA's weekly export inspections at 10 a.m. CDT and Crop Progress at 3 p.m. CDT. Weather Moderate to locally heavy rain will cross the northern Midwest Tuesday, including some severe storm potential. Temperatures will be seasonal to below normal north and central, and hot south. Other primary crop areas will be dry. Hurricane Dorian will bring strong winds, locally heavy rain and storm surge to the south Atlantic coast as a Category 3 hurricane.
| Rural Advocate News | Friday August 30, 2019 |
Trump Says Farmers will be Happy with Ethanol Package President Donald Trump says “the farmers will be so happy” when they see what the White House is doing for ethanol. On Twitter, Trump says “it will be a giant package, get ready.” Agriculture Secretary Sonny Perdue at the Farm Progress Show this week said President Trump would announce details within the next couple of weeks. Perdue declined to offer any details, other than he pushed for easier access to higher blends of biofuels. Trump says that while the package will be welcomed by farmers, it also saved “the small refineries from certain closing.” Ethanol groups have charged that small refinery waivers are killing demand for biofuels, because they exempt refiners from complying with volume requirements in the Renewable Fuel Standard. The Environmental Protection Agency recently announced 31 waivers for small refineries in 2020. In the last year of the Obama administration, the EPA issued seven waivers. Trump has held several White House meetings with cabinet members over the last two weeks, working a mitigation package. ************************************************************************************* Weekly Ethanol Production Increases as More Plants Close Weekly ethanol production increased 1.6 percent this week, according to the Energy Information Association. The slight increase comes as ethanol producers say they are struggling due to small refinery waivers that are diminishing demand for ethanol. POET, the world’s largest biofuels producer, announced last week it has reduced production at half of its biorefineries, with the largest drops taking place in Iowa and Ohio. As a result, numerous jobs will be consolidated across POET’s 28 biorefineries and corn processing will drop by an additional 100 million bushels across Iowa, Ohio, Michigan, Indiana, Minnesota, South Dakota and Missouri. This week, the leadership of the Minnesota Corn Plus ethanol plant in Winnebago announced its closure. The plant was expected to halt production as early as this week. The shareholder-owned plant is laying off about 40 employees. The Renewable Fuels Association and Growth Energy both say the waivers are causing the closures are harming rural America's economy. The Trump administration fix to the ethanol market is expected in the next couple of weeks. ************************************************************************************* USDA Plans Foreign Animal Disease Exercise in September The Department of Agriculture and the pork industry will hold a foreign animal disease exercise next month. The industry is working on a “full function” exercise that will be conducted the week of September 23. The effort will focus on a fictional outbreak of African swine fever and the subsequent response by federal and state authorities, along with the rest of the pork industry. Industry leaders say the exercise should better prepare the U.S. pork industry and its stakeholders in the event of an outbreak. The drill will focus on exercising plans, policies, procedures and staff members involved in management, direction, command and control functions. National Pork Board senior vice president of science and technology, Dr. Dave Pyburn, says, “We're trying to create a realistic scenario of a confirmed foreign animal disease in this country to see how each stakeholder reacts and to find the gaps that need more work.” To find out if your state is participating, contact your state pork association office. ************************************************************************************* FAPRI Releases U.S. Baseline Outlook Report Update Excessive spring rain, trade disputes and African swine fever have disrupted agricultural markets in 2019. Despite reduced 2019 United States corn and soybean production prospects, prices for many commodities are under downward pressure because of the many factors that have weakened demand. Economists with the Food and Agricultural Policy Research Institute at the University of Missouri just released an update to its baseline price report. Assuming a return to more normal weather conditions in 2020, “projected corn and soybean production should rebound,” according to researcher Pat Westhoff. Projected 2020-21 marketing year average prices for corn fall to $3.39 per bushel and soybean prices fall to $7.94 per bushel. This year’s update was prepared the week of August 19. Policies in place at that time, including China’s 25 percent retaliatory tariff on U.S. soybeans and other farm products, are assumed to remain in place. The update uses 2019 acreage, yield and production estimates included in United States Department of Agriculture’s August 2019 Crop Production report. ************************************************************************************* American Dairy Coalition Seeks Scientific Review of EPA Nitrate Study The American Dairy Coalition wants a scientific review of the Environmental Protection Agency’s 2013 nitrate report. In a letter to EPA Director Andrew Wheeler, the coalition says the 2013 report never received a proper scientific review, and is a “flawed and damaging” report. The EPA Yakima Nitrate Report began in 2010 and was published in 2012 and 2013. The coalition says the report has been proven false by fifteen national agricultural science experts, and was developed without the peer-review required on "influential science information" as the study was categorized. Laurie Fischer, CEO of the American Dairy Coalition, says, "It is vital that the administration demonstrate their commitment to maintaining the integrity and transparency of science." The coalition is concerned for farmers that have already been severely affected by the report and believes EPA must stop a "dangerous precedence" from being set which could impact other farmers throughout the United States. Usage of the study led to highly disciplinary enforcement and threats of federal litigation, which has devastated four large dairy farms. ************************************************************************************* Deere Appoints New CEO Deere & Company announced the appointment of John C. May as CEO. May, who has served as Deere's president and chief operating officer since April 2019, will assume the CEO role on November 4, 2019. May will take the place of Samuel Allen, who will continue as chairman after he steps down from the CEO role. Allen says May’s experience in precision agriculture, information technology, and overseas operations “will be instrumental in driving the company's digitalization journey and extending its success in agricultural and construction equipment." May becomes the 10th chief executive in the company's 182-year history. The 50-year-old May joined Deere in 1997 and became part of the senior management team in 2012 as president, agricultural solutions and chief information officer. Last year, he was named president, of the Worldwide Agriculture & Turf Division. Earlier in his career, May headed the company's China operations, served as factory manager at an Iowa Deere facility and was vice president of the turf and utility platform.
| Rural Advocate News | Friday August 30, 2019 |
Washington Insider: Economic Growth and Spending, Broken There is a lot of angst around the country just now regarding the prospects for the medium-term economic outlook. In that context, the Washington Post is carrying an Op-Ed by Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities and former advisor to Vice President Joe Biden, who writes that the large and growing budget deficit for FY 2018 of $779 billion is a huge jump over the prior year’s level and a particularly large deficit considering the strong underlying economy. Bernstein says that the Trump administration, with its tax cut, has broken a key fiscal function. In the past when employment was high tax revenues as a share of the economy were expected to rise significantly, deficits were expected to fall. Instead, revenues recently have gone way down, and deficits have climbed. He argues that this is primarily because the recent tax cuts have significantly cut the amount of federal tax revenue being spun off for any given growth rate. Increased spending also played a role, he says, but “not as large a one as the tax cuts.” If this sounds out of sync with Republican claims that “tax cuts will pay for themselves,” that’s because it is. They don’t … never did … never will, he asserts. Bernstein presents data back to the mid-1940s and calculated the average deficit as a share of GDP. In every year since the late 1940s when unemployment rate was at or below 4.5% (it’s currently 3.7%) the average deficit was 0.4%, as opposed to the 3.9% for 2018. This shows, he says, a shift in the heretofore “tight correlation between deficit and unemployment rates.” For example, he notes that in both fiscal 2000 and 2018, the unemployment rate was 4%. In 2000, the strong economy teamed up with the structure of the tax code generated revenues to the Treasury of 20% of GDP. This year, that share fell to 16.5%. Bernstein expects that advocates of the tax cuts will point to the difference in the spending between the two years, but uses projections by Congressional Budget Office to compare the two periods. The CBO projected in the summer of 2017, before the tax cuts and this year’s spending deal, that we’d spend 20.5% of GDP this year, almost exactly what happened (20.3%). But CBO also thought, ahead of the tax cut that we’d collect 17.7% of GDP in revenues when the actual was, as shown, 16.5%. This diminished revenue figure is the key difference between what CBO expected then and what occurred, he says. He sees this difference as highly important. Based on our aging demographics alone, we will need more revenue over the next decade, not less. Add in geopolitical threats, climate change and the damage from increasingly intense storms, infrastructure, the need to push back on poverty and inequality, as well as counter-cyclical fiscal policy that will be needed for the next downturn and he concludes that “it’s not hard to understand why a rising deficit at full economic capacity is so ill-advised.” These observations lead him to conclude that it is necessary to take steps to claw back the lost revenue, as well as to look for reasonable savings on the spending side. He thinks this will be hard, given claims from administration officials who believe that expected strong economic growth, combined with proposals to cut wasteful spending, will lead America toward a sustainable financial path. He calls that “magical thinking” and also argues that the red ink we learned about this week is merely the beginning of a tide that will only, absent corrective action, get larger. Here it seems we have the basis for an intense debate, both between the parties and within them. The administration wants a bustling economy and it seems completely unwilling to be deterred by implications of growing deficits and debt. At the same time, many of the Democratic contenders are proposing large, strong government programs to do many things and have been willing to argue that “modern economics” leads to less prominent concerns about debt levels and deficits—although their spending priorities are very different than most of those proposed by the administration. That raises the question of who will focus on the debt, and whether that concern will—or won’t—constrain ambitions for government programs, given the many, many concerns regarding urgent public needs. It still seems that debt worries have not disappeared entirely, and that possibly Bernstein’s former link to a top democratic contender may mean new policy efforts from that direction. So, we will see. The Post carried the Bernstein note but did not weigh in on the intensity and potential political impact of the debt issue—or of its absence. Nevertheless, this is a fight that can be expected to emerge at some point and which should be watched closely by producers and others as it does, Washington Insider believes.
| Rural Advocate News | Friday August 30, 2019 |
USDA Again Cuts FY 2019 US Agricultural Export Outlook U.S. agricultural exports are now forecast at $134.5 billion for Fiscal Year (FY) 2019, down $2.5 billion from May's forecast of $137 billion, according to USDA's August 2019 Outlook for U.S. Agricultural Exports. If those export numbers hold they would be the lowest since FY 2016 when U.S. agricultural exports were valued at $129.6 billion. It would also mark first year since FY 2016 that exports have not reached at least $140 billion. The value of U.S. agricultural imports held steady at a record $129 billion, the same as the May forecast. If the forecast comes to pass, it would mark three years in a row of record import values. The decline in ag exports is forecast to put the U.S. agricultural trade surplus at just $5.3 billion, down $2.8 billion from May's forecast of $8 billion and around one third of the $15.8 billion surplus registered for FY 2018. If realized, it would be the smallest U.S. agricultural trade surplus since FY 2006 when it stood at $4.6 billion.
| Rural Advocate News | Friday August 30, 2019 |
China Mulls Next Moves After Latest Trade War Escalations China Ministry of Commerce spokesman Gao Feng said Thursday (August 29) Beijing "firmly reject[s] an escalation of the trade war," adding that it remains "willing to negotiate and collaborate in order to solve this problem with calm attitude." China will not immediately retaliate over the duties announced by President Donald Trump that are set to take effect this weekend, Gao stated. "China has ample means for retaliation but thinks the question that should be discussed now is about removing the new tariffs to prevent escalation of the trade war," he said. Gao noted that the U.S. and China have maintained "effective communications" since the last set of face-to-face talks in Shanghai in July. He added that the two sides are "still discussing" whether Chinese negotiators will travel to Washington for more in person talks in September. On the U.S. side, Treasury Secretary Steven Mnuchin said officials still anticipate additional talks, but would not confirm whether the previously planned September meeting is still on tap. "We continue to have conversations. We’re planning for them to come," he told Bloomberg in an interview.
| Rural Advocate News | Friday August 30, 2019 |
Friday Watch List Markets Early Friday we'll be watching personal income, consumer spending and core inflation reports to be released. DTN will also be watching for deliveries on expiring September futures contracts, updated longer term weather outlooks and any news regarding new biofuel incentives and U.S.--China trade talks. Weather Heavy rain and flash flooding are in store for the southeastern Plains Friday. Other crop areas will be dry. Temperatures will be seasonal to below normal north and central, keeping crop progress slow. Meanwhile, Hurricane Dorian in the western Atlantic Ocean is forecast to reach major hurricane status during Friday.
| Rural Advocate News | Thursday August 29, 2019 |
Perdue Calls for Investigation Into Cattle Markets After Kansas Fire U.S. Ag Secretary Sonny Perdue has been monitoring the impact of a fire at the beef processing facility in Holcomb, Kansas. As a part of that monitoring effort, Perdue says, “I have directed USDA’s Packers and Stockyards Division to launch an investigation into recent beef pricing margins to determine if there is any evidence of price manipulation, collusion, restrictions of competition, or other unfair practices.” Perdue says if any unfair practices are found, his agency will take quick enforcement action. The USDA remains in close contact with plant management and other stakeholders to understand the fire’s impact on the industry. The National Cattlemen’s Beef Association was pleased with Perdue’s announcement. NCBA President Jennifer Houston says the announcement demonstrates the government’s understanding of the extreme strain placed on the cattle industry by the plant fire in Kansas. “We encourage USDA to look at all aspects of the beef supply chain and to utilize internal and external expertise in the investigation,” she says. “We believe it adds transparency that will help build confidence in the markets among cattlemen and women.” ********************************************************************************************** The List of Asian Countries Battling ASF Continues to Grow African Swine Fever has now claimed another country in Asia. The disease is now in Myanmar (ME-yahn-mar), a country west of the previous known outbreaks. A National Pork Board release says if eastern Russia is included, that makes eight Asian countries that are struggling with the disease. The World Organization for Animal Health says two provinces in far-eastern Russia that aren’t far from the Chinese border have recently reported new outbreaks of the disease on multiple farms. While ASF cases have been found in eastern Russia before, these provinces hadn’t been affected by outbreaks until recently. The United Nation’s Food and Agricultural Organization says Myanmar’s Ministry of Agriculture, Livestock, and Irrigation confirmed the first ASF outbreak occurred on August 1. It’s in the northwest part of the country near the Chinese border. Other outbreaks then occurred on August 10 and 11, respectively, also in the northeast part of the country. Elsewhere, officials in the Philippines have seen suspiciously high mortality in backyard pigs recently. As a result, the multi-island nation is setting up animal inspection points and a quarantine area so officials can check pigs for signs of African Swine Fever. Many cities and provinces within the country are taking additional action to help prevent the spread of ASF. ********************************************************************************************** Michigan Lawmakers Ask Trump to “Stop Choosing Oil” Michigan Senators Debbie Stabenow and Gary Peters recently joined five other senators in asking the Trump Administration to support a strong Renewable Fuels Standard. The administration recently took more action to benefit oil companies and undercut American-grown biofuels. The Environmental Protection Agency issued 31 small refinery hardship waivers, which allows oil companies to blend less biofuel into gasoline. The August 8 announcement effectively cut demand for biofuels by over 1.4 billion gallons. Stabenow says, “The President needs to stop putting the interests of big oil companies ahead of farmers who are already struggling thanks to the administration.” The effect of the 31 small refinery waivers is compounded by the 54 additional waivers the EPA has granted over the last two years.” “I’m disappointed that our farmers continue to be undermined by the Trump Administration’s waivers for big oil companies,” Peters says. “The RFS was created to reduce our reliance on foreign oil sources and shift us to homegrown biofuels that we grow and produce domestically.” The Administration’s use of waivers has increased 370 percent, with some of them going to the world’s largest oil companies. Recently, more than 13 ethanol plants and eight biodiesel plants have idled their production or shut down entirely across the country. ********************************************************************************************** Hemp Production and Processing Rules Expected in September The USDA is expected to issue new rules for growing and testing hemp sometime next month. Capital Press reports that has farmers feeling anxious about establishing consistent standards for producing the booming crop. Senator Ron Wyden of Oregon tells the Capital Press that he expects the USDA to issue those regulations sometimes within the next two to four weeks. Wyden was one of the sponsors of legislation decriminalizing hemp in the 2018 Farm Bill. The Hemp Farming Act of 2018 passed with bipartisan support and classified hemp as an agricultural product. “I think it’s pretty obvious that you are on the right side of history,” Wyden said during remarks to a crowd at the Western U.S. Hemp Growers Conference and Expo on August 19 in Portland, Oregon. “You don’t have thousands of farmers moving into this space for nothing. Hemp can be used to make multiple products like paper, textiles, clothing, and building materials. The primary use in the market today is for an extract called CBD Oil, which companies put into everything from cosmetics to beverage, touting health benefits. ********************************************************************************************** Coalition Says Tariff Increases “Come at the Worst Possible Time” Americans for Free Trade has a lot to say about the pending U.S. tariff increases on Chinese goods. The coalition of over 160 businesses set a letter to President Trump asking him to postpone tariff increases that are scheduled to take effect next week. The association says the proposed tariff increases come as consumers draw nearer to the holiday shopping season, which means costs will rise in the coming months. The letter says, “These tariff rate increases, some starting as early as Sunday, come at the worst possible time, right in the middle of the busy holiday shopping period. U.S. consumers are driving the growth of the U.S. economy and we want to ensure that their confidence remains high.” Americans for Free Trade represents many of the sectors and products that will be hit hardest by recent trade war escalation. Starting on September 1, approximately $112 billion in goods will be hit by a 15 percent tariff, including products that range from clothing and footwear to televisions and Christmas decorations. “We want to ensure that economic prosperity continues for the American families, farmers, and workers we employ every day.” ********************************************************************************************* Conagra Teams With HSUSA on Chicken Welfare Standards Conagra Brands recently announced steps it will implement when it comes to company treatment of broiler chickens in its supply chain sourcing practices. The company worked with the Humane Society of the U.S. on the new goals, which add higher standards to the company’s existing broiler policy. Conagra says it will work with suppliers, peers, and external stakeholders to implement several improvements in its treatment of chickens by 2024. Among the improvements, Conagra says it will provide birds with more space to perform natural behaviors, including a stocking density of no greater than six pounds per square foot and no use of broiler cages. They’ll also be tracking supplier compliance with the new standards through third-party auditing. In a statement, Conagra says it’s proud to work with the Humane Society of the United States, as well as others in the food industry, to take meaningful steps toward positive change in broiler chicken welfare practices. HUSU says, “We applaud Conagra for addressing the most pressing concerns related to chicken meat production.”
| Rural Advocate News | Thursday August 29, 2019 |
Washington Insider: Collateral Issues and the China Trade Battle A political factor in the U.S.-China trade war is attracting the attention of the urban press this week. For example, the New York Times gave front-page coverage to a story about farmer concerns over President Trump’s trade war. Also, The Hill highlighted a quote from “Iowa corn farmers” charging that the government put us in “one hell of a bad situation.” At least one trade association was hammering the President for approving what it called 31 “unjustified” refinery waivers tied to ethanol, along with his growing trade war with China. It said those two issues, combined with the effects of climate change, are forcing the value of Iowa corn to drop ahead of harvest season. The farmer group also charged that while the President has sought to cast himself as a staunch supporter of American farmers, the U.S. agricultural community has been disproportionately harmed as China targets farm products in an apparent attempt to hit some of Trump’s main backers. Meanwhile, the President is continuing to argue that while the trade war may cause some “short term” pain,” farmers will be “big winners.” The Times article emphasized a sophisticated aspect of this issue, the fact that in the current fight American farmers’ woes are collateral damage in a war that the administration is using to help manufacturers and others it believes were hurt by China’s trade practices—although the issues involved are not mainly agricultural. More than a year into the dispute, sales of American soybeans, pork, wheat and other ag products to China have dried up as Beijing retaliates against U.S. tariffs, the Times notes. Lucrative contracts that farmers long relied on for significant sources of income have evaporated, with Chinese buyers looking to other nations like Brazil and Canada to get the commodities they need. While the Times focuses on farm market pressures, it also thinks they have generally “remained resolute,” as the President continues to argue that his trade policies will help the agricultural industry in the end—even as questions grow regarding what those benefits may turn out to be. “We’re not starting to do great again,” Brian Thalmann, the president of the Minnesota Corn Growers Association told Ag Secretary Perdue at a recent event. “Things are going downhill and downhill quickly.” On Monday, after a 72-hour period during which Trump twice escalated his trade war with China, Thalmann said he could no longer support the President as he did in 2016. Losing the world’s most populous country as an export market has been a major blow to the agriculture industry. Total American agricultural exports to China were $24 billion in 2014 and fell to $9.1 billion last year, the Times says and exports of farm products to China fell by $1.3 billion in the first half of the year. The administration also has tried to mollify farmers by rolling out two financial aid packages totaling $28 billion—and is looking for other ways to help farmers, including additional trade deals such as the one recently described between the U.S. and Japan. Last Thursday, President Trump summoned Perdue and Andrew Wheeler, who heads the EPA, to the White House to discuss options for increasing ethanol demand. The three came up with a package of policies that Trump plans to unveil at a White House ceremony in the next week that the Times expects to keep the waivers for ethanol refineries in place, while slightly increasing federal mandates for production of corn-based ethanol and biodiesel and allowing vehicles that use high-ethanol blends of gasoline to qualify for special EPA credits. Perdue is a somewhat unlikely lieutenant in the administration’s trade war, the Times says because as Georgia’s governor, he worked to strengthen ties between the state and Chin. But as a member of the administration, he has been a staunch backer of the President’s policies, publicly defending tariffs, working to shrink the federal government and expressing doubts about the science behind climate change. At Minnesota’s recent Farmfest, it was clear that Perdue’s Southern charm could go only so far. His answers to questions about how the trade war with China would end were curt the Times said. Last week, USDA staff members in Nebraska left the Pro Farmer Midwest Crop Tour after receiving a threat from an angry farmer. An organizer of the event told the Times that farmers have been venting to government employees about depressed crop prices, falling farm income and lack of access to credit. “This is a stressful time in agriculture,” said Joel Jaeger, the general manager of Pro Farmer. “There’s certainly a lot of stress in the farm community.” The fact is that one of the reasons trade negotiations are so tough is that they typically involve significant “collateral issues.” Thus, ag producers now are increasingly arguing that the trade fight that risks well established, lucrative ag markets in an effort to strengthen non-ag sectors like manufacturing are unfair and that government trade aid payments are greatly insufficient. In fact, collateral issues always involve very difficult issues—and almost always provide very attractive targets for the “other side” to exploit, as the Chinese are doing now. So, what this debate may mean for future U.S. policies remains to be seen, but the fight appears to be growing increasingly confrontational and difficult, and should be watched closely as it intensifies Washington Insider believes.
| Rural Advocate News | Thursday August 29, 2019 |
USDA Releases Study Showing Waterway Investment Benefits to US Ag USDA unveiled a new study detailing the importance of inland waterways to U.S. agriculture and the economic benefits that additional investments could yield. The study, prepared by Informa Agribusiness Intelligence, found the U.S. inland waterways system employed nearly 256,000 Americans and contributed $27.2 billion to U.S. gross domestic product (GDP) in 2016. It determined that additional investments totaling $6.3 billion over the next 10 years and $0.4 billion per year thereafter would see inland waterways contribute $64.6 billion to U.S. GDP by 2045, and employ some 472,000 people. The study considered the impact of dredging the lower Mississippi River from Baton Rouge through New Orleans and the Southwest Pass into the Gulf of Mexico. It found the project - along with other waterway investments - would increase the market value of corn and soybeans by $39 billion by 2045 compared with the status quo of no additional investments, including new dredging. “Water transport is the most efficient, cost-effective transportation for our producers, and our waterways keep the American exporter the most competitive in the world," USDA Secretary Sonny Perdue said in a statement accompanying the report. "President Trump has made it a priority to revitalize our nation’s infrastructure and invest in our rural communities, and his goal to reestablish America’s economic prowess on the global stage can be furthered by rebuilding our waterways to support agriculture exports. We must continue to invest in modernizing our lock and dam infrastructure that flows through the heartland of agricultural production," he concluded.
| Rural Advocate News | Thursday August 29, 2019 |
USDA Announces Hemp Crop Insurance Coverage For 2020 Production Crop insurance for hemp production will be available for the 2020 crop year via the Whole-Farm Revenue Protection (WFRP) program, according to USDA’s Risk Management Agency (RMA). Producers can obtain WFRP coverage for hemp now if they are part of a Section 7606 state or university research pilot as authorized by the 2014 Farm Bill. Other producers cannot obtain coverage until a USDA-approved plan is in place. But USDA has not completed the rulemaking process on the hemp provisions in the 2018 Farm Bill, with plans to finalize the rules this fall. WFRP allows coverage of all revenue for commodities produced on a farm up to a total insured revenue of $8.5 million. The 2018 Farm Bill amended the Controlled Substances Act to address how industrial hemp is to be defined and regulated at the federal level.
| Rural Advocate News | Thursday August 29, 2019 |
Thursday Watch List Markets Personal income, consumer spending and core inflation will be closely watched for signs of a slowing economy. DTN will be watching U.S. export sales on especially corn and soybeans, along with updated weather forecasts and any news on U.S. trade deals with China and Japan. Weather Light rain or showers will develop in the northern Midwest during Thursday. Heavier showers and a few thunderstorms may occur late Thursday or during Thursday night in the southwest Midwest and the east-central Plains area. This activity may become locally heavy. Mainly dry elsewhere in the key U.S. and Canada crop areas Thursday. Temperatures continue to average below normal today over the Canadian Prairies and the Northern Plains while the Midwest should see near to below normal temperatures. Hurricane Dorian will move towards the northwest east of the Bahamas today and Friday. A turn towards the west after that with a threat to Florida's east coast by Sunday night.
| Rural Advocate News | Wednesday August 28, 2019 |
Beijing “Not Aware” of Weekend Calls with Trump President Donald Trump claims China is ready to return to the negotiating table, but China says they don’t know who the President talked to over the weekend. A spokesperson for China’s Foreign Ministry told reporters “I am not aware of the phone calls over the weekend.” Trump claims Chinese officials called top U.S. trade officials to say, “let’s get back to the table.” However, China refutes the claim, and hopes the U.S. will “remain calm, return to reason, and immediately stop its wrong approach,” referring to the trade war escalation and Trump’s order against U.S. companies doing business in China. However, the order met pushback from the stock market and the U.S. business sector. China replied, “We hope the U.S. will heed the views from various sectors, calculate its gains and losses, and come to prudent rather than hot-headed decisions.” Over the phone negotiations were set to resume this week and Chinese officials are scheduled to meet in Washington with the U.S. for negotiations next month. ************************************************************************************* RFA: EPA Rejected White House Recommendation on Waivers The Renewable Fuels Association claims White House documents show the Environmental Protection Agency ignored Trump Administration recommendations on small refinery waivers. Documents obtained by the association apparently show the EPA ignored strong recommendations from within the Trump Administration to redistribute Renewable Fuel Standard blending obligations lost to small refinery exemptions in the proposed rule for 2020 volumes. According to the documents, which detail the White House Office of Management and Budget’s interagency review of the 2020 RVO proposal, some reviewers within the administration raised concerns about EPA’s failure to redistribute exempted biofuel blending volumes to non-exempt parties. The documents recommended that EPA include prospective redistribution of waived volumes in the 2020 proposal and suggested a method for addressing a court order to restore 500 million gallons of blending obligations inappropriately waived in 2016. RFA President and CEO Geoff Cooper says the documents “will only exacerbate the outrage and anger in farm country over EPA’s abuse of the small refinery waiver provision.” Cooper says the EPA “must adopt the prospective reallocation approach.” ************************************************************************************* Hemp Crop Insurance Coverage Available for 2020 Certain industrial hemp growers will be able to obtain insurance coverage under the Whole-Farm Revenue Protection program for crop year 2020. The Department of Agriculture’s Risk Management Agency Tuesday announced coverage for hemp grown for fiber, flower or seeds. The coverage will be available to producers who are in areas covered by USDA-approved hemp plans or who are part of approved state or university research pilot programs. RMA Administrator Martin Barbre says producers “are anxious for a way to protect their hemp crop,” adding that the policy will “provide a safety net for them.” Producers can obtain the coverage for hemp now if they are part of a Section 7606 state or university research pilot as authorized by the 2014 Farm Bill. Other producers cannot obtain coverage until a USDA-approved plan is in place. The program allows coverage of all revenue for commodities produced on a farm up to a total insured revenue of $8.5 million. It is popular for specialty crops, organic commodities and non-traditional crops. ************************************************************************************* Vilsack, Grassley, Tout USMCA in Iowa Senator Chuck Grassley and former Agriculture Secretary Tom Vilsack touted the U.S.-Mexico-Canada Agreement this week while touring an Iowa dairy processor. Grassley, the chair of the Senate Finance Committee and a prominent Agriculture Committee member, says “There’s going to be tens of thousands of jobs created” stemming from USMCA. The two toured AE Dairy in Des Moines, Iowa, a dairy plant that will benefit from the trade agreement, once signed. Vilsack of Iowa, who served as Agriculture Secretary for President Obama, is the current CEO of the U.S. Dairy Export Council. Speaking during the event, Vilsack stated, “USMCA makes vital improvements to NAFTA and its passage is necessary to modernize trade in North America.” According to a recent International Trade Commission Report, USMCA could mean up to $314 million in additional dairy sales. Agriculture remains hopeful lawmakers will consider the agreement when they return from the August recess. Washington insiders expect Congress won’t consider the agreement until November or December of this year. ************************************************************************************* National Pork Board to Host First-Ever Swine Innovation Summit The National Pork Board will host the inaugural Swine Innovation Summit in Indianapolis on September 17, 2019. NPB bills the Summit as a special event, prior to the Forbes AgTech Summit in Indianapolis. The program seeks to help pork producers and food influencers better understand emerging technology trends facing today’s food production systems. NPB says today’s food production systems are undergoing explosive change and the animal agriculture industry needs to prepare in order to keep pace. The Swine Innovation Summit will focus on three key drivers of change including emerging technology, new and dynamic business models and consumer behaviors which impact shopping preferences and food choices. An NPB spokesperson says, “In the span of a few short hours, we intend to educate today’s pig farmers on what they need to know and how they must adapt to the changing world in which we live.” NPB is offering the conference free of charge to pig farmers, swine veterinarians, authorized academics and allied industry. Learn more at pork.org. ************************************************************************************* KFC Testing Beyond Fried Chicken KFC announced the brief introduction of Beyond Fried Chicken in a trial run, a meat-free alternative to its staple products. In partnership with Beyond Meat, the fast food chain tested the new offering briefly Tuesday at an Atlanta, Georgia, location. Customer feedback from the Atlanta test will be considered as KFC evaluates a broader test or potential national rollout. Beyond Fried Chicken is fried to order. It is available as a nugget or as a boneless wing. The products are 100 percent plant-based, and Beyond Meat says they are prepared in a dedicated fryer. In a news release, , KFC president and chief concept officer Kevin Hochman stated, “our customers will find it difficult to tell that it’s plant-based.” Beyond Meat continues to grow its line of meat-imitating products through fast food restaurant chains. Within the last month, Beyond Meat announced product offerings at Subway and Dunkin Donuts, along with including in meal delivery companies Hello Fresh and Blue Apron.
| Rural Advocate News | Wednesday August 28, 2019 |
Washington Insider: The President’s Stark Choice It seems that the world of trade and economic policy has gotten quite a lot more challenging in recent days, and the urban press has noticed. For example, the New York Times says that the administration has recently sent numerous conflicting signals on trade policy — and that in addition to the impact of protectionist policies themselves, the uncertainty and anxiety from conflicting policy moves are also negative market factors. Overall, the Times says, the president can try to sever the deeply intertwined American commercial relationship with China, or he can prod economic growth to assuage the fears of investors around the planet. “But he cannot do both at the same time,” the report asserts. The Times waxes a little poetic about all of this—it proclaims that the President “can disregard the admonitions of news outlets he derides as fake news. He can simply consult the one source whose verdicts he tends to celebrate: the stock market.” There’s proof, NYT says — among those who control money, portents of further trade hostilities lead to stock sales “with abandon” while amplifying talk of recession. By contrast, intimations of a deal reverberate as a clarion call to buy, sending share prices higher while easing worries about a potential global economic downturn. Talk of a trade deal with China makes for happy stock markets. However, thunderous threats of fresh tariffs on Chinese goods and efforts to push American industry to forsake China damage share prices and shrink economic growth prospects — even as they bring approval from Trump’s most ardent political supporters who portray the trade war as a tough but necessary piece of business, too long avoided by the cowards who resided at the White House before. NYT recounts that on Friday the president unleashed furious threats toward China and vowed to raise tariffs on $550 billion of Chinese goods and declared China’s president, Xi Jinping, whom he had previously called a “good man,” an “enemy.” And he commanded American companies to abandon China and start making their products in the United States. In markets around the globe, investors reacted to these developments as powerful signals to yank their money to safety. They reacted as if much of the globe suddenly appeared riskier, the Times said. The Times also notes that the trade war that has escalated over the last year has already produced distress. For much of the world, countries that are innocent bystanders will actually suffer “even more than the United States and China,” said Louis Kuijs, the Hong Kong-based head of Asia economics at Oxford Economics. “There is not going to be any de-escalation any time soon.” While the U.S. is still growing, with an unemployment rate lower than it had been in half a century, companies are deferring investments as they puzzle over the impact of trade hostilities. Such a slowdown in investment could eventually prompt households to curb their spending and lower growth, the Times says. Long before Trump took office, American governments complained about China and its failed promises to open its markets—and on its lavish subsidies for state-owned companies. It turned itself into an export juggernaut while ignoring labor and environmental standards. The administration sees no solution in slow-moving cases at the WTO but often pushes for a fundamental redrawing of commercial geography. In that view, the American economy should “decouple” from China, the Times says. The president’s recent pronouncements appear to underscore that he is truly “willing to see Americans accept the costs”—plunging stock markets, weakening investment—for a wholly new sort of relationship with China as adversary. “The potential outcomes are many, but none of them involve the world’s getting richer, the Times said. So, by Sunday morning, at the Group of 7 summit in France, the President was expressing “second thoughts” about his new tariffs and by Monday he was calling Xi a “great leader” and reporting that China was interested in resuming trade talks. Stock markets were buoyant. At least for a few hours, the bewildering notion that the United States and China were dissolving ties could be forgotten. Throughout the administration’s tenure, trade experts have struggled to separate its real policy aims and beliefs from negotiating ploys. Many administration positions are seen as perpetually flexible, depending on which advisers have the President’s ear — and on the tenor of television conversations about economic growth prospects and—especially — the stock market. In addition, key advisers — like USTR Robert Lighthizer and chief trade adviser, Peter Navarro, author of a book called “Death by China” — urge the president to untether the American economy from China. At the same time, other advisors such as Larry Kudlow, who leads the National Economic Council and Treasury Secretary Steven Mnuchin tend to focus on areas of interest to investors, not least share prices. While President Trump is famously adept at maintaining positions that seem mutually exclusive, the Times says, the trade war threatens to force him to choose between it and economic growth. In Beijing and Washington alike, hard-liners have dug in, shrinking room for a compromise. In both capitals, a sense of permanent alteration has transpired, a deepening assumption that — whatever comes next — China and the United States will proceed with profound wariness. The Times concludes that for the global economy, that could entail grave uncertainties and perils. So, we will see. So far, it seems as if policy uncertainty has been worsening, rather than clarifying — but it also seems that pushback from the Congress and the industries is growing. These are key trends and will affect both economic and political trends—and which should be watched closely by producers through the coming months, Washington Insider believes.
| Rural Advocate News | Wednesday August 28, 2019 |
Bankruptcy Filings in Farm Country Climb Farm bankruptcy filings in the year through June were up 13% from 2018, and loan delinquency rates are on the rise, according to the American Farm Bureau. A challenging growing season, low prices, liberal use of Renewable Fuel Standard waivers and, of course, trade policy, are straining the ag sector, the group noted. President Donald Trump signed into law a measure that would more than triple the debt cap on Chapter 12 bankruptcy to $10 million from a prior $3.237 million. While the level of bankruptcies is up, they still are well below the levels seen during the farm crisis in the 1980s. This also puts more attention on the Friday update from USDA on U.S. farm income.
| Rural Advocate News | Wednesday August 28, 2019 |
Perdue Refutes EPA Claim On Small Refiner Exemptions USDA Secretary Sonny Perdue delivered a strong rejection of EPA's claim small refinery exemptions (SREs) are having "zero impact" on corn ethanol producers. "I would refute the comment" as "[there is a] negative impact" on ethanol production from the waivers, Perdue told IEG Policy in a Virginia appearance. EPA "likes to point to export totals of ethanol production, which is good and healthy" to argue the waivers are not hurting ethanol producers, he noted. While welcoming ethanol exports, Perdue stated, "the demand destruction over domestic usage has been affected by the small refinery waivers." Perdue pointed out that with a 15 billion gallon mandate for conventional ethanol, “every time you issue a waiver, you decrease that [obligation], which decreases corn use, and that decreases ethanol capacity for the American producer.” Perdue cited a need to boost the infrastructure for E15 fuel as one way to help offset the small refiner exemptions.
| Rural Advocate News | Wednesday August 28, 2019 |
Wednesday Watch List Markets There are no significant government financial reports out on Wednesday. DTN will be watching for new September weather outlooks and any news regarding trade agreements, especially with China and Japan. Weather Rain is expected through the northeast U.S. during Wednesday, showers through the Texas and Louisiana areas. Mainly dry elsewhere in key U.S. growing areas. Light rain through the eastern Canadian Prairies. Temperatures averaging below normal through the Canadian Prairies, the Northern and central Plains and the Midwest regions during Wednesday will slow development of filling crops. Tropical storm Erin will be southeast of the Carolinas Wednesday. Tropical storm Dorian will move through the northeast Caribbean near Puerto Rico.
| Rural Advocate News | Tuesday August 27, 2019 |
Japan Agreement to Restore U.S. Benefits in TPP The trade agreement announced over the weekend between the U.S. and Japan should close the tariff gap created when President Trump removed the U.S. from the Trans-Pacific Partnership. Details have yet to be announced, but agriculture groups expect the tariff levels to be comparable to those of other nations who continued the TPP negotiation without the United States. While there are details yet to be worked out, U.S. Grains Council CEO Ryan LeGrande says, "lowering market access barriers with one of our most valuable and loyal grain buyers is a critical win-win.” LeGrande says the deal will level the playing field for U.S. agriculture. The agreement is expected to be finalized and signed late next month in conjunction with the United Nations General Assembly meeting. Meanwhile, following last week’s turbulent developments in the trade war with China, President Trump Monday said the two sides would resume negotiations. China announced retaliatory tariffs Friday, including increased tariffs on U.S. ag products, prompting Trump to do the same. ************************************************************************************* U.S. Farms Paying Cost of Retaliatory Tariffs U.S. farmers are taking the brunt of retaliatory tariffs, according to a recent CoBank report. The report confirms what the industry has pointed out over the course of the trade war, that China is targeting U.S. farm products in retaliation. In an analysis of 11 U.S. agricultural commodities representing a cross-section of agricultural exports, U.S. producers - not the importing country or its consumers - paid much of the cost of these tariffs in all but two cases. CoBank says the impact of retaliatory tariffs placed on U.S. farm products reflects the lopsided balance of power between U.S. producers and their importing customers. The nature of agricultural products, inventories with long shelf lives, and ease of identifying and sourcing suitable substitutes are among the factors that give importing customers the upper hand. The report says that with the prospect of declining bargaining power, U.S. producers of most agricultural commodities will face pressure to absorb more of the costs of retaliatory tariffs in the future. ************************************************************************************* Amazon Fires Could Alter Global Soy Trade Fires in the Amazon are likely to alter global soy trade in the future. Jim Bower of Bower Trading points out in his daily newsletter that many of the fires are started by humans to clear the land for crops. More than 75,000 fires have been reported since January, an 84 percent annual increase. Bower suspects that China is behind the increase as the trade war between the U.S. and China is escalating. China, the world’s largest consumer of soybeans, is seeking alternate markets after blocking imports from the United States, even though China made small purchases of U.S. soybeans last week. The land clearing of the Amazon is seen as a way to capture soy demand previously filled by U.S. producers. If true, the increase in production area in Brazil could permanently change soybean trade. The fires had the attention of the G7 Summit in Europe, with some nations saying they would block a trade agreement between the European Union and Brazil until Brazil takes action. ************************************************************************************* Ethanol Plant Representatives Ask Trump to Stop EPA Waivers The ethanol industry is asking President Trump to restore biofuel demand that was damaged by small refinery waivers. The Waivers exempt refineries from the Renewable Fuel Standard, and effectively reduce the blending targets set under the RFS, according to Growth Energy. On Monday, the group, along with several workers from ethanol plants across the county, penned a letter to Trump asking the President to restore the demand. The letter points to the billions of gallons of “lost” biofuel demand, leading to ethanol plants idling production or shutting down. Each time a plant idles production, the letter states that “farmers are notified that biofuel producers can no longer accept grain deliveries, and the impact has been devastating for communities already on the edge.” Farm income is now down by half since the start of this year alone, according to the Bureau of Economic Analysis. Growth Energy CEO Emily Skor says the EPA “must immediately repair the damage from abusive refinery exemptions and get lost gallons back into the marketplace.” ************************************************************************************* Trump Signs Family Farmer Relief Act President Trump last week signed the Family Farmer Relief Act of 2019. The law raises the Chapter 12 debt limit from $4.1 million to $10 million. The bipartisan bill “will help family farmers reorganize after falling on hard times,” according to American Farm Bureau Federation President Zippy Duvall. The law allows more farmers the opportunity to qualify under Chapter 12 bankruptcies and gives producers and their creditors a better chance to reorganize and avoid mass liquidation. A recent AFBF analysis found the delinquency rates for commercial agricultural loans in both the real estate and non-real estate lending sectors are at a six-year high. The bill was introduced this spring and passed both chambers of Congress earlier this month. House sponsor, Representative Antonio Delgado of New York, says the changes reflect the increase in land values, as well as the growth over time in the average size of U.S. farming operations and are meant to provide farmers additional options to manage the downturn in the farm economy. ************************************************************************************* Sorghum Checkoff Hosts International Buyers The Sorghum checkoff Monday welcomed a group of international buyers interested in grain sorghum as part of the Export Sorghum event. The one-day expo in Dallas, Texas, included more than 65 international buyers. Sorghum Checkoff executive director Florentino Lopez says the event “serves as our opportunity to share the value of U.S. sorghum.” Export Sorghum is centered around creating networking opportunities while providing buyers with information to help them make sorghum the “smart choice” for their feed grain solutions. Attendees of the event also tour parts of the U.S. to experience sorghum production and the value chain firsthand while developing relationships with U.S. sorghum farmers and suppliers. The Sorghum Checkoff says sorghum has proven to be a reliable ingredient across several industries including swine, poultry, beef, dairy and human food, increasing export opportunity. The event was held in conjunction with the United Sorghum Checkoff Program, in coordination with the U.S. Grains Council, Kansas Grain Sorghum Commission and Texas Grain Sorghum Producers Board.
| Rural Advocate News | Tuesday August 27, 2019 |
Washington Insider: Breaking Ties With China Trade issues continue to have top billing in the media this week and there is a new wrinkle — whether or not the president has the authority to force American companies to cut ties with China. He claims that he can do that and at least a couple of White House aides agree, Bloomberg says, but notes that numerous trade experts and others question such a policy. And, the more important question is whether or not he seriously plans to assert such powers. Treasury Secretary Steven Mnuchin, speaking on a Sunday talk show said the president would have the ability under the International Emergency Economic Powers Act but that he would first need to define and declare “an emergency.” White House economic director Larry Kudlow agreed — but went further to argue that “there’s nothing right now in the cards” to do so.” The president cited the 1977 measure late Friday, saying it gave him the power and declaring, “Case closed!” In addition, Bloomberg noted “some China hardliners in the administration have been urging the president to invoke the law on a number of fronts over the past two years.” Bloomberg called the approach “extreme,” but opined that it could be a way to take aim at operations of American businesses ranging from automakers General Motors Co. and Tesla Inc., to industrial companies such as Caterpillar Inc. and retail giants including Walmart Inc. Bloomberg also said that applying the IEEPA in this fashion was never the intent of the legislation — but that this wouldn’t be the first time the administration has looked into it. The president cited the law when he threatened in May to place levies on Mexican goods as a way to force curbs on the flow of undocumented immigrants across the U.S.-Mexican border. The intensifying trade battle between the world’s two largest economies and the potential for pushing the limits of presidential authority earlier roiled markets with the Dow Jones Industrial falling 623 points on Friday before strengthening somewhat on Monday. Mnuchin and Kudlow fielded questions Sunday after the president said he “hereby ordered” American companies to seek alternatives to business in China, including moving operations “home and making your products in the USA.” The president’s comments were followed hours later by tweets declaring that the U.S. would increase the rate of existing and impending tariffs on Chinese goods in response to China’s earlier announcement that it was planning to retaliate against earlier U.S. tariffs. Trump’s Friday warning reflected the possibility of a long trade war, Mnuchin said. Kudlow echoed the point, while emphasizing that the president wasn’t currently issuing such an order. “There’s no emergency powers being invoked right now,” Kudlow said. “Ultimately, we do have such authority, but it is not going to be exercised presently. What he is suggesting to American businesses — and it’s something he has said to many companies, in many different forms, on many different occasions — you ought to think about--to the companies — you ought to think about moving your operations and your supply chains away from China.” Trade experts have previously questioned the president’s authority to impose tariffs under IEEPA, which has been used primarily to sanction countries in national security threats, such as Iran during the hostage crisis in 1979-1981. “I’m not saying it’s an easy case to make, but I don’t think it’s laughable,” said Raj Bhala, a specialist in international trade law at the University of Kansas. If the president did invoke IEEPA, he would have to craft a remedy that’s proportional to the threat, Bhala said. Thus, a complete ban on doing business in China probably wouldn’t stand but restrictions on companies dealing with sensitive intellectual property might, he said. The Information Technology Industry Council, which represents companies such as Amazon.com Inc. and Facebook Inc., responded Saturday with alarm about the prospect of invoking the law. In Trump’s announcement Friday of another wave of higher tariffs, he said existing 25% tariffs on some $250 billion in imports from China would rise to 30% come Oct. 1, the 70th anniversary of the founding of the People’s Republic of China. Planned 10% tariffs on a further $300 billion in Chinese goods will be taxed at 15% instead of 10% starting with the first tranche on Sept. 1. Bloomberg said that China is “seriously making” preparations for relations with the U.S. to deteriorate, according to Global Times’ editor-in-chief Hu Xijin. The Global Times is a Chinese tabloid run by the People’s Daily, which is the flagship newspaper of the Communist Party. Hu has said the paper voices opinions that official sources can’t. So, we will see. This increase in trade tensions with China, especially if it continues to worsen, seems to imply a diminishing chance of a new China trade deal and a growing need to cultivate markets elsewhere, as Mnuchin said. The recent especially tough talk all around is not good news for ag producers and suggests that the negotiations should be watched more closely than ever as they proceed, Washington Insider believes.
| Rural Advocate News | Tuesday August 27, 2019 |
USDA Food Price Forecasts Hold Mostly Steady USDA made few changes to its food price forecasts for 2019 and 2020, keeping the overall food price inflation outlook for both years at 1.5% to 2.5%. They also still see food away from home (restaurant) prices rising two percent to three percent for both years and grocery store food at home) costs are seen rising 0.5% to 1.5% both in 2019 and 2020. The grocery price increase outlook remains well below the 20-year average and comes after prices at the store rose just 0.4% compared with 2017 when they declined 0.2%. Compared to their prior outlooks, USDA edged down expectations in 2019 for poultry, fresh fruits and cereals and bakery products. While food prices are currently forecast to rise more than the increases for 2018, grocery store costs in particular remain below trend.
| Rural Advocate News | Tuesday August 27, 2019 |
Rescinding Prior Small Refiner Exemptions Now Not Expected President Donald Trump and Cabinet officials decided to retain the biofuel blending waivers granted to small refineries but take steps to make up for lost biofuel volumes, according to contacts. The plan under development would encourage the use of gasoline that contains 15% ethanol and would increase by 500 million gallons the amount of conventional renewable fuels that have to be used in mandates, presumably for 2020. A separate quota for biodiesel, typically made from soybeans, would get a 250 million gallon increase for 2021. Additionally, the administration will enhance a program meant to expand U.S. fueling infrastructure and get more ethanol into the system. EPA will adopt a USDA assessment of the greenhouse gas emissions associated with renewable fuel and will expand environmental credits encouraging automakers to produce “flex-fuel” vehicles that can run on high-ethanol gasoline. However, details could still change as the plan has not yet been finalized.
| Rural Advocate News | Tuesday August 27, 2019 |
Tuesday Watch List Markets The Case-Shiller Home Index and the Consumer Confidence Index will be out. DTN will also be watching for any news on the renewal of U.S.-China trade talks and more talk of a U.S.-Japan trade deal alluded to on Monday. Weather Light rain or showers may linger in the eastern and southeastern Midwest region early Tuesday. Showers, a few thundershowers and some rain in the southeast U.S., through the southern Delta and over the Southern Plains. Light rain or showers also for the eastern part of the Canadian Prairies and the northern part of Minnesota. Drier elsewhere in key U.S. and Canada growing areas Tuesday. Filling crops will benefit from any late-August shower activity. However, development will slow with below-normal temperatures, especially through the Northern and central Plains and western Midwest regions. Tropical depression 6 has formed well southeast of North Carolina in the western Atlantic. This system is expected to remain off shore of the U.S. East Coast.
| Rural Advocate News | Monday August 26, 2019 |
U.S.-Japan Reach Trade Agreement The United States and Japan reached an agreement over the weekend on an agriculture-related trade deal. The agreement, according to President Trump, will lower tariffs on U.S. agricultural goods, although specific details have not been announced. President Trump during a news conference on the sidelines of the G7 Summit in France, says the U.S. and Japan hope to finalize the agreement next month. The agreement is expected to increase U.S. access to Japan for beef, pork, wheat, dairy and ethanol. Agriculture Secretary Sonny Perdue says the agreement closes tariff gaps and allows the U.S. to compete on a level playing field in Japan. Perdue says, “We will be able to sell more to the Japanese markets.” Agriculture groups welcomed the agreement, as the U.S. Meat Export Federation says, “favorable access to Japan is a major win, not only for the U.S. red meat industry but for all of U.S. agriculture.” American Farm Bureau Federation President Zippy Duvall stated, “This is much-needed good news on the agricultural trade front.” ********************************************************************************************** Pro Farmer's National Corn and Soybean Crop Estimates Pro Farmer Friday released its crop estimates from the Pro Farmer Midwest Crop Tour. For corn, Pro Farmer estimates a 13.2 to 14.4 billion bushel crop in 2019, with an average yield of 163.3 bushels per acre. For soybeans, Pro Farmer estimates a 3.49 billion bushel crop, with a yield of 46.1 bushels per acre. Pro Farmer lowered corn harvested acreage 217,000 acres from USDA’s August estimate. The national estimates reflect Pro Farmer’s view on production and yields. They take into account data gathered during the Pro Farmer Crop Tour and other factors, such as crop maturity, acreage adjustments, historical differences in tour data versus USDA’s final yields, and areas outside those sampled on Crop Tour. Find state-by-state results and analysis at www.ProFarmer.com ********************************************************************************************** China Purchases U.S. Soybeans Despite Boycott The National Review Dot Com says China bought a small amount of U.S. soybeans last week. The purchase happened in spite of promising to boycott U.S. farm products because of deteriorating trade negotiations with the Trump Administration. Data from the U.S. Department of Agriculture says Beijing agreed to a purchase of 9.589 metric tons of U.S. soybeans for the current marketing year. They also agreed to a buy of 66,000 metric tons for the following year, which starts on September 1. An August 5th statement from the Chinese Commerce Ministry said Chinese companies would be boycotting American farm products as a response to the Trump Administration’s tariffs on Chinese goods. Despite breaking that boycott, China still isn’t purchasing nearly as many American soybeans as it has in the past. China is the world’s largest soybean importer and spent last year giving most of its business to South America. The administration had said it would impose tariffs on another $300 billion in Chinese goods on September 1. However, the White House later said it would delay imposing them until December. ********************************************************************************************** ASA Responds to Further Trade Dispute Escalation from China China has officially announced it will impose an extra five percent tariff on U.S. soybeans starting on September 1. They’ll also add another 10 percent in duties on other major U.S. crops grown by many American soybean farmers. The latest details come after China vowed last week that it will retaliate if the U.S. goes through with its original plan to increase tariffs on Chinese goods on September 1. ASA President Davie Stephens says, “ASA has strongly requested an end to the tariffs on U.S. beans for more than a year. This escalation will affect us not because of the increased tariff on our sales, which have been at a virtual standstill for months, but through time.” He says the longevity of the situation means worsening circumstances for soy growers who still have unsold product from this past season and new crops in the ground this season. Stephens adds that “prospects are narrowing even more now for sales to China, a market that soy growers have valued, nurtured, and respected for many years.” ASA is asking both parties to step up and stop the tariffs and find a resolution that doesn’t target soy growers trapped in the middle. Real people, including Chinese citizens and the American public, along with our soybean growers, are the ones actually feeling the effects of the trade war. ********************************************************************************************** Corn Farmers Push President for More Corn Demand Rural America is feeling the impact of the Trump Administration’s recent granting of 31 small refinery waivers to big oil companies across the country. The waivers are only adding to a list of farmer concerns about markets, trade, and crop conditions. Fifteen ethanol plants have either been shuttered or idled over the past 12 months. One of the most recent plants taken out of production is POET’s Cloverdale facility, with POET specifically citing the most recent waivers as the reason for the decision. As demand for ethanol drops because of the list of waivers, it’s more likely that other plants will follow. A National Corn Growers Association news release says President Trump appears to be reconsidering the actions of the Environmental Protection Agency. The NCGA is currently working with members of the administration and Congress to share solutions to help boost corn demand. Redistributing and accounting for the waived gallons in the upcoming Renewable Volume Obligations (RVO) rulemaking is just one of the steps that the administration can take today to help. NCGA is asking corn farmers to submit comments directly to the EPA asking them to do that. Farmers are losing patience with tariffs and trade negotiations and the NCGA says the president needs to remember his promises to American farmers. ********************************************************************************************** NFU Worried Trade Aid Could Undermine Next Farm Bill National Farmers Union President Roger Johnson says he’s concerned that billions of dollars in trade aid could have a negative impact on the next farm bill. He says the aid monies the Trump Administration is sending to farmers could undermine political support for the next farm bill. Johnson says it’s important to note that the $16 billion in aid promised to farmers this year exceeds total spending on Title 1 farm programs in a year. Politico says it’s a part of sweeping legislation that already has somewhat tenuous support as political power shifts away from rural voters. Congress also relaxed payment limits for the trade aid program, making it easier for millionaires to qualify. Johnson says, “That’s a dangerous thing. I think a lot of urban congressmen and women are going to look at this and say, ‘there was a lot of damage done in my state in this industry or that industry as a result of the trade disruption – none of them got a nickel in trade help.’” Johnson says the last time an administration used the Commodity Credit Corporation to pay aid to farmers, “their hands were immediately slapped.” He points out that Congress immediately put riders on appropriations bills and said administrations won’t do this again. ********************************************************************************************* Whole Foods CEO Says Alt-Meat is “Highly Processed” Whole Foods was the first retailer that carried Beyond Meat’s vegan “chicken strips” back in 2013. However, the CEO of Whole Foods says he can’t endorse any of today’s plant-based meat substitutes as healthy because of their ingredients. CEO John Mackey has been a vegan for more than 20 years. While he didn’t list any specific names, Mackey tells CNBC that the brands currently “taking the world by storm are highly-processed foods,” as shown in their ingredient lists. “I don’t think eating highly-processed foods is healthy,” he says. “I think people thrive on eating whole foods. As for health, I will not endorse that, which is about as big of a criticism that I’ll do in public.” Mackey believes plant-based alternatives are a more ethical choice and better for the environment. He also tells CNBC in an article that meat substitutes are considered by some as a way for meat-eaters to “re-educate” their palates. Alissa Rumsey is a registered dietitian who told CNBC early this year that, “They aren’t necessarily healthier than beef burgers. They’re totally fine to eat, but there’s no need to replace your beef burger if you don’t enjoy these.” ********************************************************************************************** Federal Court Sends Water Rule Back to EPA A federal court in Georgia says the 2015 Waters of the United States rule is unlawful under the Clean Water Act, due to its “vast expansion of jurisdiction over water and lands that typically fall within states’ regulatory authority.” The federal court for the Southern District of Georgia found that the agency overstepped both the Clean Water Act and the Administrative Procedure Act. The APA lays out the basic rules on how agencies may propose and establish federal regulations. The Georgia court kept a preliminary injunction in place that prevents the rule from becoming law in 11 states involved with the lawsuit while the Environmental Protection Agency finalizes its repeal and replacement of the Obama-era 2015 rule. The American Farm Bureau Federation says the ruling wasn’t just a victory for the plaintiff states, but also a broad coalition of more than a dozen private-sector groups. “The court ruling is a clear affirmation of exactly what we have been saying for the past five years,” says AFBF General Counsel Ellen Steen. “The EPA badly misread Supreme Court precedent and encroached on the traditional powers of the states. They simply ignored the basic principles of the Administrative Procedure Act when issuing this unlawful regulation.”
| Rural Advocate News | Monday August 26, 2019 |
Washington Insider: White House Announces US-Japan Agreement in Principle Bloomberg is reporting this week that the US and Japan have agreed in principle on a trade deal which will slash Japanese tariffs on U.S. beef, pork and other ag products — but will continue to impose tariffs on Japan’s auto exports. President Trump announced the deal Sunday and said Japan also would commit to buy large quantities of U.S. wheat and corn. Bloomberg opined that “Japanese officials may consider that a good deal if they can elicit a promise in return that its automakers will be shielded from threats of more painful tariffs in the future.” The U.S. President and Japanese Prime Minister Shinzo Abe announced the agreement in Biarritz, France at the Group of Seven summit following a bilateral meeting earlier in the day. “We’ve agreed in principle,” the President said. “We’ve agreed to every point.” He also referred to a “massive” purchase of wheat and a “very, very large order of corn” that he said would happen quickly. Abe said only that agricultural product purchases, which would be conducted by the private sector, were a possibility. Bloomberg said that Japanese officials had been “spooked by threats of punitive tariffs on Japanese autos and agreed last September to start bilateral trade talks with the U.S.” President Trump has in turn come under pressure from U.S. beef and pork farmers, reeling from the trade war with China, “who have also been hobbled by a tariff disadvantage in the Japanese market compared with competitors from signatories of the Trans-Pacific Partnership regional trade deal he rejected.” The countries have reached consensus on “core elements” and are setting a goal to sign a deal at the end of September during United Nations meetings. Abe also noted that “there is still some work to be done by officials.” If we are to see the entry into force of this trade agreement, I’m quite sure that there will be the immense positive impact on both the Japanese as well as American economies, he said. Bloomberg commented that “while the proposed deal may provide Trump with a fillip as he heads into his campaign for re-election, it remains to be seen how it will be received in Japan, where some officials have said the country should not give up its leverage over U.S. farmers without substantial concessions in return.” Japanese trade agreements generally have to be approved by parliament before going into effect. Japanese media reported earlier that the U.S. and Japan had agreed to an outline deal that would lower tariffs on U.S. beef to levels offered to members of the TPP. Japan and the U.S. agreed last year this would be the maximum possible level. U.S. Trade Representative Robert Lighthizer also commented on the content of the proposed deal, which he said would open markets to $7 billion of products including ethanol, as well as beef, pork, dairy products and wine. He said U.S. tariffs on some Japanese industrial products would be reduced—"but that these would not include cars.” The farming provisions of the deal won some early praise in the U.S. with the National Pork Producers Council and Senate Agriculture Committee Chairman Pat Roberts among those welcoming a deal they expect “would put U.S. agriculture on an even basis with TPP-member nations.” President Trump had teased the deal throughout the day, saying he was “very close to a major deal with Japan” and that talks had been held over five months. “Frankly, I think what’s happening with China helps with respect to Japan. But it’s a very big deal. It will be one of the biggest deals we’ve ever made with Japan,” he said. So, we will see. The President’s heavy criticism of the U.S. Fed and his suggestions of even tougher tariff levies on future Chinese imports sharply weakened U.S. markets ahead of the G-7 meeting and it remains to be seen how that uncertainty will play out in the days ahead—and how the “agreement in principle” will be received amid all of the ongoing tension. These are fights that should be watched closely by producers as they continue, Washington Insider believes.
| Rural Advocate News | Monday August 26, 2019 |
NFU President Calls MFP Trade Aid 'Dangerous.’ Trade relief payments to farmers via the Trump administration's Market Facilitation Program (MFP) should have been granted by Congress, Roger Johnson, president of the National Farmers Union, told reporters. In July, the Trump administration unveiled a second aid package providing $16 billion more in federal aid for agriculture – including $14.5 billion in payments to farmers – following an 2018 trade mitigation program totaling $12 billion in aid. But rather than basing funds on crop type, MFP 2 sets a per-county rate based on the blend of crops grown in the area, with payments ranging from $15 to $150 an acre, which critics say will cause vast disparities in aid. “It would have made more sense for the money to come through Congress,” Johnson said during a media roundtable in Washington. He said the action is a “dangerous thing USDA did,” expressing concern it could have on the next U.S. farm bill. The group issued a statement when USDA detailed the MFP 2 effort, expressing disappointment that the agency did not include any incentives to reduce production. Johnson said Trump's "strategy of constant escalation and antagonism" has "just made things worse." America's family farmers and ranchers "cannot withstand this kind of pressure much longer,” he observed. Despite NFU’s call, no limitations on production are expected to be implemented.
| Rural Advocate News | Monday August 26, 2019 |
USDA Official: China Far Short of Soybean Purchase Pledge China has purchased about only half the U.S. soybeans it pledged to buy earlier this year, a USDA official said on Thursday, after a small sale was reported in the weekly sales recap by the agency. USDA Undersecretary for Trade Ted McKinney told Reuters that Beijing was a long way from doing that. "Very publicly in the Oval Office, they made commitments for 20 million metric tons of purchases, and only about 9 or 10 (million tonnes) have been shipped and accepted,” McKinney said on the sidelines of a conference in Chicago, where he later shook hands with a delegation of Chinese buyers. China's Commerce Ministry said on August 5 that Chinese companies had stopped buying U.S. farm products and that it could impose additional tariffs on them, a move that targets rural states that supported Trump in the 2016 election.
| Rural Advocate News | Monday August 26, 2019 |
Monday Watch List Markets After Friday's new tariff news, traders will be looking any trade-related news or comments this week. Weather remains important with row crops still developing and spring wheat being harvested. USDA's weekly report of grain export inspections is due out at 10 a.m. CDT, followed by Crop Progress at 3 p.m. Weather Rain, showers and thunderstorms will occur Monday from the northeast and east-central Plains through the Midwest, the north and west Delta and also in the southeast U.S. areas. Rain through the central Midwest area improves soil moisture for filling summer crops. Runoff from recent heavy rainfall in parts of Nebraska and Kansas will cause flooding of small creeks and streams, country roads, farmland and other low-lying spots. Cooler weather returning to the Canadian Prairies, the Northern Plains and the Midwest regions will slow development of already delayed crops. Many crops are vulnerable to damage from an early or even an on-time fall freeze.
| Rural Advocate News | Friday August 23, 2019 |
USDA Mailing Trade Aid Checks Farmers are seeing payments from the first round of the latest trade aid in the mailbox. Farm Service Agency director Richard Fordyce says the first payments are being mailed out now, and farmers are reporting receiving the checks. Round one of the three potential payments is 50 percent of the overall amount farmers may receive. USDA expects up to $14.5 billion of payments will be sent to farmers, pending on the trade negotiation progress. Another 25 percent of the total would go out later this fall, if the Department of Agriculture deems the payments necessary. The final round, if needed, is planned for some time around January. The payments are meant to offset the losses stemmed from the Trump trade agenda and trade war with China. Payments range from $15 to $150 per acre, depending on location. Payments are also available for dairy and hog producers, under certain reporting parameters. This is the second time the Trump administration has used the Market Facilitation Program since the trade war with China began. ************************************************************************************* CBO: Trade War to Slow Economic Growth The bipartisan Congressional Budget Office says the trade war will slow economic growth, adding more fears of a possible recession. The CBO says tariffs, which reduce U.S. gross domestic product through higher prices, reduces consumer purchasing power. The report predicts the economy will grow at 1.8 percent per year over the next decade, below historical average growth rates. Agriculture has already seen the impact of tariffs stemming from the trade war. Agricultural sales to China dropped more than 50 percent since the trade war began, and China recently announced it would no longer buy U.S. ag products. However, a range of developments, such as unexpected changes in international conditions, could make economic outcomes differ significantly. For example, if new trade agreements lowered trade barriers, economic growth could be faster than projected. Conversely, if trade barriers rose higher, domestic investment and output could be slower than projected. Previous private firm reports have suggested the U.S. will enter a recession within the next year if the trade war escalates. ************************************************************************************* Canada-China Relations Strain over Politics, Trade While the U.S. continues its trade war negotiations with China, Canada's relations with China are straining, as well. Canadian Prime Minister Justin Trudeau says Canada' won't back down' to various disputes with China. Meanwhile, China, which has made a similar warning to the U.S., tells Canada comments regarding the unrest in Hong Kong are not welcome. Specifically, China says, "Hong Kong affairs are purely China's internal affairs." China hopes Canada can "reflect on its wrongdoing," regarding Hong Kong and other issues, including those that now impact agricultural trade. China has detained two Canadian citizens and halted imports of canola seed and meat products from Canada. The move was in response to Vancouver police detaining a senior Huawei (Wah-Way) executive on a U.S. arrest warrant in December. China imported 4.8 million metric tons of Canadian canola in 2018, and 1.1 million metric tons of canola oil, supporting more than 16,000 Canadian jobs. China is typically the largest market for Canadian canola, and Canada is the world's largest producer of canola. ************************************************************************************* U.S. Wheat: Trade Deal with Japan Would Ensure Competitiveness U.S. Wheat Associates says a trade deal with Japan would allow U.S. wheat to fairly compete with wheat from other nations exported to Japan. Currently, under the Comprehensive and Progressive Trans-Pacific Partnership, Japan’s effective tariffs on Canadian and Australian wheat imports are discounted and will continue being discounted to the tariff on U.S. wheat imports. Japanese flour mills prefer and choose to source 50 percent of their annual needs, almost three million metric tons per year on average, of wheat from the United States. However, the CPTPP will grant preferential access to Canada and Australia by reducing the effective tariff on their wheat, eventually a reduction of about $70 per metric ton, or 45 percent below the current tariff on U.S. wheat. A bilateral trade agreement with Japan, which the Trump administration is working on, could reduce the tariff level on U.S. wheat, according to the organization. The U.S. lost the opportunity to level tariffs with other markets when the U.S. left the then-called Trans-Pacific Partnership. ************************************************************************************* Soy Groups Seek Meeting with Trump on Waivers The National Biodiesel Board and American Soybean Association have requested a meeting with President Donald Trump to discuss small refinery exemptions. In a letter to the President, NBB CEO Donnell Rehagen (don-NELL Ray-HAY-gen) and ASA President Davie Stephens detail the damage the waivers have dealt the biofuels industry and farmers. The letter, noting the conditions in farm country, says that while many fear an economic recession within the next year, farmers are “already facing a severe economic downturn.” The two groups conclude the letter with a request to meet with the President: "We would appreciate an opportunity to discuss how the administration can repair the uncertainty.” President Trump held a meeting earlier this week to find ways to smooth over farmer anger, specifically related to the small refinery waivers. Biodiesel and ethanol groups start with asking for a reallocation of waived volumes, now estimated at more than four billion gallons. More than 15 ethanol plants have shut down, blaming the demand destruction caused by the waivers. ************************************************************************************* Senators Request USDA IT Review from GOA As farmers report information technology problems with Department of Agriculture programs, two farm-state senators are asking the Government Accountability Office to investigate. Senate Democrats Debbie Stabenow and Gary Peters, both of Michigan, penned a letter to the GAO this week seeking the review. In 2017, Agriculture Secretary Sonny Perdue announced a major IT modernization at USDA to ensure better customer service to America’s farmers and ranchers. Part of the modernization was the combination of and modernization of the IT systems of three agencies which impact farmers and ranchers most directly. The letter states, “we are particularly interested in whether the changes have improved, interfered with, or added risks for the successful and timely implementation of the 2018 Farm Bill.” Michigan dairy farmers have reported to the Senators that IT problems made signing up for the new Dairy Margin Coverage program a challenge. Some farmers even report enrollment took multiple trips to Farm Service Agency offices complete because of IT challenges.
| Rural Advocate News | Friday August 23, 2019 |
Washington Insider: Trade Fight’s North Dakota Impacts Bloomberg is reporting this week that as economic anxiety has intensified nationwide, the ag industry in North Dakota – on the far northwestern edge of the U.S. farm belt but relatively close to Pacific ports – is reflecting on its earlier economic decisions to invest millions on grain storage and rail-loading infrastructure while boosting plantings by five-fold in 20 years. However, now that “the world’s top soybean importer shuns the U.S. market for a second growing season, Dakota farmers are reeling from the loss of the customer they spent two decades cultivating.” This experience underscores the uneven impact of the U.S.-China trade war across the U.S., Bloomberg says. Although Chinese tariffs target many heartland states that, like North Dakota, supported President Trump’s 2016 election, those further south and east are better able to shift surplus soybeans to other markets such as Mexico and Europe. They also have more processing plants to produce soymeal, along with larger livestock and poultry industries to consume it, Bloomberg thinks. For North Dakota, losing China – the buyer of about 70% of the state’s soybeans – has destroyed a staple source of income. Agriculture is North Dakota’s largest industry and it “probably has taken a bigger hit than anybody else from the trade situation with China,” Jim Sutter, CEO of the U.S. Soybean Export Council, said. China shut the door to U.S. agricultural purchases on Aug. 5 after the administration intensified the conflict with threats of additional tariffs on $300 billion in Chinese imports, some as soon as Sept. 1. In addition, Bloomberg says that some farmers who were relying on the administration’s $28 billion in farm aid payments to compensate them for trade war losses have been disappointed with new payment rates for counties in North Dakota, which are below those for some southern states that rely much less on exports to China. The rates were determined by USDA who said it will provide higher rates for states with higher “level of exposure” to tariffs than North Dakota – because they also depend on crops, such as cotton and sorghum which also face Chinese tariffs.” This spring’s soy crop was planted at a time when the White House was talking up a “nearly finished trade deal with China” that collapsed in May weakening prices, Bloomberg notes. Vanessa Kummer farms in Colfax, N.D., and has yet to sell a single soybean from this year’s harvest because of low prices. Normally, the farm would have sold 50% to 75% of the upcoming harvest. In addition, she fears the U.S.-China soy trade is now “permanently damaged” as China shifts its purchases to Brazil, uses less soy in animal feed and consumes less pork as African swine fever kills of millions of the nation’s pigs. Options for North Dakota farmers are limited. U.S. wheat has been losing export market share for years. Demand for specialty crops such as peas and lentils, which grow well in the northern U.S., has been dampened by retaliatory tariffs imposed by India, a major importer of both products. North Dakota’s farmers did not set out to become so dependent on a single buyer of one crop, Bloomberg says. But with wheat profits shrinking and Chinese demand for soy growing, soybeans increasingly seemed like the obvious choice. Rail companies expanded capacity to open up a West Coast corridor and Pacific Northwest seaports expanded to handle more exports to China. Seed companies offered new varieties that thrive in the state’s colder climate and shorter growing season. A $200 million crop two decades ago blossomed into a $2 billion crop, topping the value of wheat, once North Dakota’s top crop. The number of high speed shuttle train loading terminals tripled with investments totaling at least $800 million. But now one of those facilities, CHS Dakota Plains Ag elevator in Kindred, North Dakota, has gone three or four months without loading a soybean train this year, said Doug Lingen, a grain merchant there. Normally the elevator would load at least one train a month with beans bound for the Pacific Northwest. The weakened demand has soybean prices in North Dakota trading at an historic discount to the U.S. average, and farmers are putting investments on hold. Justin Sherlock, who grows corn, soybeans and other crops near Dazey, North Dakota, had been planning to invest $100,000 to $150,000 in a grain drier this year – but now has shelved those plans. One reason is the low level of government aid in his county – now expected to be $55 per acre, well below the maximum $150 rate offered in 22 counties nationwide. Sherlock called the latest announcement “disappointing.” “I’m just going to defer all my investment,” he said, “and try to limp along for a few years.” So, we will see. It is clear that the farm economy is feeling economic pressure from several directions including lost overseas sales. Reports from the farm fair circuits indicate that there is growing criticism from producers as a result – a trend producers should watch closely through the fall, Washington Insider believes.
| Rural Advocate News | Friday August 23, 2019 |
China Signals Any New Tariffs By US Will Bring Retaliatory Response Even though the U.S. has delayed a portion of the 10 percent tariffs set to go into effect September 1, China says any new tariffs put in place will bring a response from China. "Despite the U.S. decision to delay tariffs on some Chinese goods .... if the United States rides roughshod over China's opposition and impose any new tariffs, China will be forced to adopt retaliatory actions,” Ministry of Commerce spokesman Gao Feng told a news briefing. Gao would not say what response China would offer if the U.S. tariffs were put in place. He noted that the trade war is bad for the U.S. and China and would have a recessionary impact on the global economy. He also observed that U.S. and Chinese trade teams have been keeping in contact, but did not offer any guidance as the nature of those talks. As for President Donald Trump’s statement that the U.S. would not intervene in the Hong Kong situation, Gao said, "I hope U.S. side can stick to its words.” Meanwhile, China’s Foreign Ministry also weighed in, calling on the U.S. to meet China “halfway” in the trade situation. "We hope the United States will meet China halfway," said Foreign Ministry spokesman Geng Shuang. He said there is a hope that the two sides can “work out a resolution that is acceptable to both sides on the basis of mutual respect and equal treatment."
| Rural Advocate News | Friday August 23, 2019 |
Initial Round of MFP 2 Payments On Their Way USDA has started making the initial payments to farmers under the Market Facilitation Program 2 (MFP 2). "The process began today (August 21) for payments for producers that have approved applications so producers should be seeing that first 50% tranche of those payments very soon," Fordyce told USDA Radio. Second and third tranche payments accounting for 25% each of the total MFP payment will be sent out conditioned on continued trade challenges. However, there are reports that glitches in USDA/FSA software regarding some components of the program will mean some producers will not get their payouts until September. Looking forward, if trade conditions fail to improve by late fall, the second MFP payments will be made, likely in November, while a third would come "probably in January at some point" if the trade difficulties persist, Fordyce said. Those are payment timelines that USDA has signaled in public filings on the MFP 2 payments and in press releases.
| Rural Advocate News | Friday August 23, 2019 |
Friday Watch List Markets Weather will continue to be monitored Friday with beneficial rains in the seven-day forecast for much of the Midwest. The only two reports on the docket are U.S. new home sales at 9 a.m. CDT and USDA's monthly cattle-on-feed report at 2 p.m. Weather Showers and thunderstorms will extend from the southeastern Plains east to the mid-Atlantic coast Friday. Heavy amounts and flash flooding are likely in the southeastern Plains. We'll also see light rain in the northwest Plains and Canadian Prairies. Seasonal to below-normal temperatures in northern and central areas slow crop development compared with the average pace.
| Rural Advocate News | Thursday August 22, 2019 |
China Hopeful U.S. Will Meet Halfway in Trade Talks China is hopeful the U.S. will meet them “halfway” in trade negotiations. In a daily news conference, a Chinese Foreign Ministry spokesperson expressed hope the two sides could “find a mutually-acceptable solution” through trade negotiations. China maintains that economic cooperation between China and the U.S. is “win-win in nature.” China and the U.S. are each other’s top trading partner and represent “one of the world's most important bilateral relationships.” Trade experts don’t think the U.S. sale of fighter jets to Taiwan will interfere with the talks. However, the spokesperson from China did request the U.S. “immediately cancel” the planned sales. Otherwise, “the U.S. will have to bear all the consequences.” President Trump on Twitter said the U.S. is “doing great” on trade talks with China and others, as part of a tirade against the U.S. Federal Reserve Bank. Negotiators are set to meet early next month in Washington. U.S. farm groups continue to urge a quick resolution to the trade war, as China has halted buying U.S. ag products. ************************************************************************************* USDA Pulls Employees from Crop Tour Following Threat Farmer angst spread to Pro Farmer’s Midwest Crop Tour Wednesday. The Department of Agriculture pulled all personnel from the tour after an angry farmer allegedly threatened a USDA employee over the phone. Pro Farmer says the threat reported on the western leg of the tour was not from a tour scout or farmer that attended a crop tour meeting. The threat was reported to local authorities, and Pro Farmer announced additional security measures for the remainder of the event. Officials did not announce the nature of the threat, or who was threatened. Federal Protective Services are investigating the incident. Compounding stress in farm country continues to grow as farmers face depressed prices, trade issues and a challenging growing season, along with farmers questioning USDA data. Pro Farmer recognized that "it's clearly a stressful time right now," but that stress does not justify making threats to federal employees, or anyone on crop tour. The tour concludes Thursday night in Rochester, Minnesota, and final estimates will be released Friday. ************************************************************************************* Ethanol Industry Counters EPA “Zero Evidence” Claim The Environmental Protection Agency says small refinery waivers have no impact on ethanol producers. However, the biofuels industry disagrees. EPA this week claimed, "there is zero evidence" the waivers have a negative impact on domestic ethanol producers. Yet, POET, the largest U.S. ethanol producer, just announced it will idle production at its facility in Cloverdale, Indiana. The Renewable Fuels Association said last week that 13 ethanol plants have been closed, three permanently, because of the waivers. POET Chairman and CEO Jeff Broin says through the waivers, EPA “has robbed rural America, and it’s time for farmers across the Heartland to fight for their future.” Growth Energy CEO Emily Skor says Closures in Iowa, Illinois, Kansas, Minnesota, Florida, Virginia, Texas, Pennsylvania, Missouri and Nebraska “are only the beginning.” Growth Energy points out that dozens of biofuel plants have cut production, and ethanol consumption fell for the first time in 20 years because of the small refinery waivers being issued to now 42 of the nation’s 48 small refineries. ************************************************************************************* EPA Seeks Public Comment on Pesticide Applications for Hemp The Environmental Protection Agency is seeking comments on ten pesticide applications to expand their use on hemp. The requests are the result of the December 2018 Farm Bill provisions that removed hemp from the Controlled Substances Act, legalizing hemp for commercial use and production. EPA Administrator Andrew Wheeler says the comment period is the next step toward registering crop protection tools for hemp in time for use during the 2020 application and growing seasons. Hemp farmers told the Trump administration and Congress earlier this year pesticide availability is one the biggest challenges in hemp production. The ten products are existing insecticides and fungicides from Agro Logistic Systems, Marrone Bio Innovations and Hawthorne Hydroponics. Comments are due 30 days after the notice publishes in the Federal Register, expected in the coming days. Once public comments are received, EPA anticipates deciding about the possible use of the specified products on hemp before the end of 2019 to help growers make informed purchasing choices for the upcoming growing season. ************************************************************************************* U.S., Mexico, Agree to New Tomato Suspension Agreement The Department of Commerce has announced a new draft agreement between the U.S. and Mexico on fresh tomato trade. Mexico and the U.S. have a preliminary agreement in place to suspend the ongoing anti-dumping investigation of fresh tomatoes from Mexico. The Commerce Department says the agreement will protect U.S. tomatoes from unfair trade practices. For years, the U.S. has disputed the roughly $2 billion worth of tomatoes that are imported from Mexico annually. The disputes led the Commerce Department to terminate an earlier suspension agreement. The U.S. also continued an investigation that could have led to duties of 25 percent for most Mexican tomato producers. The draft includes a brand-new inspection mechanism to prevent the importation of low-quality, poor-condition tomatoes from Mexico. The draft agreement also allows the Commerce Department to audit up to 80 Mexican tomato producers per quarter. The statute requires a 30-day notice and comment period. United Fresh says the draft agreement “will be beneficial for the entire distribution chain, most importantly growers and consumers.” ************************************************************************************* USDA Reports Farm Computer Ownership and Usage The Department of Agriculture says computer ownership and usage among farmers increased over the last two years. The Farm Computer Usage and Ownership report released last week updated numbers from 2017, as the report is compiled during odd-numbered years and released in August. The new data shows 75 percent of farms reported having access to the internet, with 73 percent of farms having access to a desktop or laptop. Over half of the farms in the United States used a smartphone or tablet to conduct farm business, compared to 44 percent in 2017. In 2019, 26 percent of farms used satellite and 22 percent of farms used a Digital Subscriber Line, known as DSL, to access the internet. Since 2017, Satellite and DSL continue to be the most popular choices that United States farms use to access the internet. The 2019 computer usage estimates are based on responses from more than 20,000 agricultural operations, and represent all sizes and types of farms.
| Rural Advocate News | Thursday August 22, 2019 |
Washington Insider: Ag Policy Fight in Oval Office Bloomberg is reporting this week that a “farm state uproar” reached the Oval office on Monday — but that the difficulty was not the “get tough” trade policies that have been hammering ag markets this year, but rather concerned ethanol fuel mandates. The report said that the president not only presided over the dustup but urged officials to soften the impact of recent policy moves that angered Midwestern farm states critical to his re-election, especially the EPA’s Aug. 9 decision to give 31 refineries exemptions from annual biofuel-blending requirements. The report quoted Iowa Senator Chuck Grassley, R-Iowa, as asserting that the administration’s biofuel policy had “screwed” farmers. Trump suggested rescinding some of the newly granted waivers during the Monday meeting, Bloomberg said, but was told the waivers may not be reversible. In response, officials offered other ideas to mitigate the political impact in Iowa, a state he carried in 2016 and needs again in 2020 to win. Monday’s back-and-forth illustrates an intensifying clash over U.S. biofuel policy that pits two of Trump’s top political constituencies — farmers and oil interests — against each other, Bloomberg said. The administration is divided, with USDA favoring farmers and the EPA insisting the law compels them to waive the requirement for refineries facing economic harm. The Monday meeting was organized to discuss trade with China but quickly turned into a fuels discussion because the U.S. ambassador to China, former Iowa Governor Terry Branstad, had just visited the state and was concerned about “the harm” he believed the waivers will cause rural America. The meeting was lively and lasted roughly two hours, with at least one follow-up call. The discussion included broad policy changes designed to mollify farm-state critics and expand the market for corn-based ethanol. At one point, Branstad even questioned whether the U.S. could mandate that auto companies make all vehicles capable of running on a variety of fuels to allow consumers to choose what to use, an idea that was quickly rebuffed after warnings that it would provoke a big fight with automakers. Among the other options discussed: fuel policy changes designed to make E15 — gasoline that contains 15% ethanol — the new nationwide standard, replacing the 10% variety that is now commonplace. The EPA in May lifted restrictions on E15 gasoline that blocked widespread summertime sales, but fewer than 2,000 stations offer that blend. Flex-fuel vehicles are capable of using both but limited consumer interest has discouraged widespread adoption. It is not clear that any of Monday’s ideas will materialize. Since 2017 the administration has tried to broker a compromise on biofuel policy between warring ethanol and oil industry interests, but the design of the U.S. Renewable Fuel Standard makes it nearly impossible to satisfy both stakeholders simultaneously. And many of the ideas advanced Monday would require congressional action or lengthy federal rulemaking; some even conflict with regulatory changes already under way. Moreover, some of the proposals would benefit ethanol but do little to address concerns by U.S. biodiesel makers that use soybean oil as a feedstock and whose footprint extends beyond the corn belt. The White House discussions center around a 14-year-old federal law that dictates oil refineries use biofuel to satisfy annual quotas set by the EPA. The statute authorizes the EPA to issue exemptions for small refineries facing a “disproportionate economic hardship,” but biofuel proponents argue the administration has handed out the waivers too freely and is undermining domestic demand for the products. The EPA decided to grant 31 exemptions from 2018 biofuel-blending quotas — and deny six other applications — following months of internal deliberations and after the President intervened to authorize the move. The exemptions have caused anger throughout the Midwest, where biofuel producers, their political allies and farmers view the waivers as curbing demand for their products, amid a trade war with China that has already diminished sales. Democratic candidates for the White House also have seized on the issue. EPA officials and oil industry advocates push back against assertions that refinery exemptions are eroding demand for ethanol and point to the fact that the administration has overseen year-over-year increases in domestic fuel ethanol production to the highest level in history and that the U.S. exported a record volume of ethanol in 2018 for the second consecutive year. The EPA said its decisions take into account direction from Congress, recommendations from the Department of Energy and recent court decisions that rapped the agency for denying some refinery waivers. Still, participants in Monday’s meeting are highlighting the backlash in Iowa and other midwestern states, illustrating the political concern about alienating crucial swing voters. Oil industry allies, including Senator Ted Cruz, R-Texas, have made the opposite pitch during earlier administration discussions on the issue, arguing that support from refinery workers in Pennsylvania and other battleground states is also at risk if the president strengthens U.S. biofuel mandates. So, we will see. Ethanol and biodiesel mandates have always been controversial in some quarters and those fights intensify sharply during elections — especially when other markets have already been diminished by other administration policies. These are economic battles producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Thursday August 22, 2019 |
US, Mexico Reach Deal on Tomatoes Mexican tomato producers and the U.S. government have reached agreement on tomato trade in a deal that will avoid an antidumping investigation, according to Mexican Economy Minister Graciela Marquez. While 92% of Mexican tomatoes coming into the U.S. will be inspected at the border – a “controversial proposal,” according to a statement from several Mexican agricultural organizations – the deal would also raise the reference price of specialty tomatoes and an increase in the price of organic tomatoes that would amount to a 40% increase compared with conventional tomatoes. The groups releasing the statement included the SPTN tomato producers group. The deal calls for a “sunset review” of the agreement by September 2024. Mexico’s Marquez said on social media that the accord was “good news” that will keep the U.S. market open to Mexican tomatoes, noting the deal was reached just before midnight August 20. That will allow for a 30-day comment period before a September 19 deadline from the U.S. Department of Commerce to complete its antidumping investigation. Resolution of the issue could help ease concerns about vegetable imports from Mexico that some lawmakers have cited and it could help build further support for the U.S.-Mexico-Canada Agreement (USMCA) in Congress.
| Rural Advocate News | Thursday August 22, 2019 |
Small Refiner Exemptions Are The Issue That Won’t Die Pressure continues on the Trump administration over the issue of small refiner exemptions (SREs) under the Renewable Fuel Standard (RFS). The SREs have taken “a devastating toll on rural families facing one of the toughest years on record,” said Iowa Governor Kim Reynolds and Iowa Agriculture Secretary Mike Naig in letter to EPA Administrator Andrew Wheeler. EPA should be more transparent in issuing waivers and “immediately reallocate the gallons that have been lost due to the waivers that have already been granted,” Reynolds and Naig said in their letter. Meanwhile, biodiesel advocates are seeking to ensure anything the Trump administration does to mitigate damage does not ignore biodiesel. The National Biodiesel Board and American Soybean Association asked President Trump for a meeting on the issue, stressing in a letter that refinery exemptions disproportionately affect biodiesel and renewable diesel producers because of the design of the RFS. The Iowa Soybean Association said in a separate letter the actions to help ethanol really have not benefitted biodiesel.
| Rural Advocate News | Thursday August 22, 2019 |
Thursday Watch List Markets Reports begin rolling out at 7:30 a.m. CDT with USDA's grain export sales and the Labor Department's weekly jobless claims. The U.S. Drought Monitor is updated at the same time and should show some moisture improvement in the Midwest. An index of U.S. leading indicators is due out at 9 a.m. CDT, followed by U.S. natural gas inventory at 9:30 a.m. At 2 p.m. CDT, USDA posts its monthly cold storage report. Weather Moderate to heavy rain is in store for the Southern Plains and southeastern Midwest Thursday. Some flash flooding is likely. Other crop areas will be dry.
| Rural Advocate News | Wednesday August 21, 2019 |
Trump Allegedly Seeks to Lesson Blow from EPA Waivers President Donald Trump this week asked cabinet members to appease farmers angry over small refinery waivers. Following a rash of blowback from ethanol and commodity groups, Trump held a meeting to find a solution. Representatives from the Departments of Energy and Agriculture, along with the Environmental Protection Agency attended a two-hour meeting Monday on the subject, according to Reuters. However, no clear action has been identified so far. The EPA has received 42 requests for small-refiner exemptions for 2018, while there are only 48 classified small refineries in the United States. The waivers exempt refineries from provisions in the Renewable Fuel Standard. Farmers argue that reallocating the exempted gallons of biofuel would be a good start in addressing the issue. The National Corn Growers Association says the waived volume now accounts for 4.04 billion ethanol gallons. NCGA President Lynn Chrisp says, “waivers reduce demand for ethanol, lower the value of our crop and undermine the President’s support for America’s farmers.” ************************************************************************************* U.S. Comments on Hong Kong Could Jeopardize Trade Talks Any U.S. attempt to sway China’s dealings with Hong Kong could jeopardize efforts to reach a trade agreement. Communist party leaders in China say, “Events in Hong Kong were the internal affairs of China, and linking them with trade negotiations was a dirty aim," according to the South China Morning Post. The remarks followed Vice President Mike Pence's remarks that the Trump administration would continue to urge Beijing to resolve differences with the protesters peacefully. China officials say the U.S. would "be naive in thinking China would make concessions if they played the Hong Kong card." Further trade talks are planned for early September. However, Hong Kong, and the U.S. selling fighter jets to Taiwan, has brought further political uncertainty to the mix. The talks stalled earlier this year, and China announced it would stop purchasing U.S. ag products this month, following more tariffs announced by President Trump. China was once a $24 billion market for U.S. agriculture, falling to $9 billion last year. ************************************************************************************* U.S. Dairy Seeks Swift Trade Deal with Japan A coalition of U.S. dairy groups is urging the Trump administration to reach a trade agreement with Japan quickly. More than 70 dairy groups and companies sent a letter to Trade Representative Robert Lighthizer and Agriculture Secretary Sonny Perdue this week asking the administration to finalize a strong trade deal with Japan quickly. The coalition, including the National Milk Producers Federation and U.S. Dairy Export Council, say Japan is an established market with a growing demand for dairy products. The letter states that a robust trade agreement with Japan "will bring a much-needed boost to the economic health of the U.S. dairy industry." The letter says the Japan-EU agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership have allowed the European Union, New Zealand and Australia to position themselves to take sales from the U.S. dairy industry. The U.S. exported $270 million in dairy products to Japan in 2018. Once the trade deals are fully implemented, the U.S. risks losing $5.4 billion in total export sales. ************************************************************************************* FSA Announces Payment Acceptance of Debit Cards, AHC The Department of Agriculture’s Farm Service Agency is expanding its payment options to now accept debit cards and Automated Clearing House or AHC, debit. The paperless payment options allow FSA customers to pay farm loan payments, measurement service fees, farm program debt repayments and administrative service fees, as well as to purchase aerial maps. Previously, only cash, check, money orders and wires were accepted. By using debit cards and ACH debit, transactions are securely processed from the customer’s bank through Pay.gov, the U.S. Treasury's online payment hub. While traditional collection methods like cash and paper checks will continue, offering the new alternatives will "improve effectiveness and convenience to customers while being more cost-effective." In 2017, the average cost to manually process checks cost USDA more than $4.6 million. The expanded payment options will cut the time employees take processing payments by 75 percent. The announcement, USDA says, marks the beginning of a multi-phased roll-out of new payment options for USDA customers. ************************************************************************************* Elanco to Acquire Bayer Animal Health Elanco Animal Health has entered into a $7.6 billion agreement with Bayer to acquire its animal health business in a transaction valued at $7.6 billion. The transaction, which is subject to regulatory approval, will double Elanco's companion animal business. Bayer CEO Werner Baumann says the acquisition by Elanco will “give rise to a leading competitor in the animal health industry, benefiting customers, employees and shareholders alike." Following the transaction, Elanco will become the second-largest global animal health company. Elanco will finance the transaction through both cash and equity. Bayer will receive $5.3 billion in cash, and $2.2 billion or approximately 68 million Elanco Animal Health common shares. The transaction is expected to close in mid-2020, subject to regulatory approvals and other standard closing conditions. Elanco is a global animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets in more than 90 countries. The company employs more than 5,800 employees. ************************************************************************************* Target Launches Grocery Brand Target this week announced the introduction of Good & Gather, a company-owned food and beverage brand. The flagship brand will offer a wide range of food and beverage products that prioritize taste, quality ingredients and ease, at a great value, according to the company. Good & Gather will be available in stores and online for same-day delivery beginning September 15, 2019. The assortment will include new and trend-forward products such as avocado toast, salad kits and beet hummus alongside everyday staples such as milk, eggs and cheese. By the end of 2020, it will include more than 2,000 products across food and beverage from dairy to produce, ready-made pastas and meats to granola bars and sparkling water. Good & Gather is Target’s largest owned brand launch. Developed by Target’s internal team, the products are made without artificial flavors and sweeteners, synthetic colors and high fructose corn syrup. However, in a news release, Target notes that some products, such as fresh vegetables and eggs, never contained these ingredients.
| Rural Advocate News | Wednesday August 21, 2019 |
Washington Insider: The Huawei Interlude Economic and trade policy have become exceedingly complex these days, especially as the U.S. economy is seen by many as possibly slowing ahead of next year’s elections. One central issue, the New York Times says this week, is how the U.S. treats Huawei, the Chinese telecommunications giant that is seen by many as a potential security threat — and which the administration has moved to ban from U.S. operations. This week, however, the United States announced that it will allow American companies to continue doing business with Huawei for an additional 90 days, Commerce Secretary Wilbur Ross said. The announced reason is to give rural telecommunications companies more time to wean themselves from reliance on Huawei supplies of parts and equipment. Many rural telecom firms have been scrambling to figure out how they will replace Huawei equipment since the administration banned the company from U.S. communications networks in May, and have mounted a strong lobbying effort at the White House for more time, the Times said. “As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” Ross told the press this week. Although Huawei has been thrust into the middle of the President’s trade fight with China, he has given mixed signals on U.S. policies. After the trade talk breakdown in May, the Commerce Department added the company to a United States “entity list” that effectively banned U.S. firms from buying Chinese technology and products without government approval. But following U.S. company complaints that the ban would be hard to comply with on such short notice, the Commerce Department offered a temporary reprieve in exchange for China’s purchasing more American farm products, but no such agreement emerged. On Monday Secretary Ross said that the administration would extend the reprieve through mid-November. In a sign that the administration is not completely easing pressure on Huawei, the Commerce Department said that it was also adding 46 affiliates of Huawei to the entity list. In a terse statement issued on Monday, Huawei called the addition of the affiliates “politically motivated” and unrelated to national security and said that it was being treated “unjustly.” “These actions violate the basic principles of free market competition,” Huawei said in the statement. “Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership.” President Donald Trump has called the company a national security threat, and the United States has concerns that Huawei could be used to help the Chinese government’s espionage efforts and to disrupt American telecommunications infrastructure in the event of a conflict. “Huawei is a company we may not do business with at all,” Trump said last weekend, and argued that the relief for Huawei comes as trade negotiations between the United States and China remain at an impasse. The President agreed last week to delay some additional tariffs on toys and electronics until December, but the United States is still expected to slap levies on more Chinese imports on Sept. 1. Earlier this month it labeled China a currency manipulator for the first time since 1994. China is expected to unveil plans to retaliate. Despite the continuing tension, President Trump says that he and President Xi Jinping of China are planning to speak and that the two countries would continue to have trade talks. Republicans and Democrats in Congress have been urging President Trump to keep his hard line on Huawei. Lifting the ban outright would probably be met with strong bipartisan disapproval, NYT says. The Trump administration continues to warn that Huawei poses a national security threat — and American officials have been warning allies for months that the United States will stop sharing intelligence if they use Huawei and other Chinese technology to build the core of their fifth-generation, or 5G, networks. There is widespread concern among U.S. firms that Huawei is a security threat but some observers believe that effective safeguards can be designed and implemented, as they are in Britain and several other countries that monitor Huawei activities closely but continue to allow Huawei operations. At this time, the easing of the Huawei ban is seen as an easing of the U.S.-China trade fight and a lessening of the negative economic impacts of that battle. However, so far, positive signs of a let-up in that war have mainly been temporary and so they continue to be issues that producers should watch closely as they emerge, Washington Insider believes.
| Rural Advocate News | Wednesday August 21, 2019 |
VP Pence Pushes on China Trade, USMCA Passage Vice President Mike Pence has warned China that it will be harder to strike a trade deal if it violates Hong Kong’s laws amid the continued protests. "For the United States to make a deal with China, Beijing needs to honor its commitments, beginning with the commitment China made in 1984 to respect the integrity of Hong Kong's laws through the Sino-British joint declaration," Pence said during a speech at the Detroit Economic Club. He also called on Congress to quickly pass the new U.S.-Mexico-Canada Agreement (USMCA) after the recess. Pence noted that passage of USMCA would also help bolster the administration’s agenda with Beijing. “Make no mistake about it ... passing the USMCA will strengthen the president’s hand in negotiations with China,” he said.
| Rural Advocate News | Wednesday August 21, 2019 |
Small Refiner Exemption Issue Continues to Erupt The issue of small refiner exemptions (SREs) continues as a focal point in Washington and in farm country. Reuters reported that President Donald Trump “ordered cabinet members on Monday to stem the tide of rising anger in Iowa and other Farm Bill states” over the EPA granting of SREs. The report said Trump’s order came after a two-hour meeting at the White House Monday that involved representatives from USDA, EPA and the Energy Department. EPA last week announced that it had granted 31 SREs of the 40 that had been submitted for the 2018 compliance year at that time, with six rejected and three either withdrawn or declared ineligible. Since then, EPA data now shows two more SRE requests are pending for the 2018 compliance year, bringing the total requested to 42. The announcement last week prompted several lawmakers to criticize the administration’s action which reports indicated were due to Trump’s own orders to EPA to announce the SREs. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, denounced the action. “They screwed us when they issued 31 waivers compared to less than 10 waivers during all of the Obama years,” Grassley told reporters.
| Rural Advocate News | Wednesday August 21, 2019 |
Wednesday Watch List Markets Midwestern weather continues to capture much of the market's focus after USDA recently said over two-thirds of soybeans were setting pods. A report on U.S. existing home sales will be out at 9:00 a.m. CDT, followed by weekly energy inventories from the U.S. Energy Department at 9:30 a.m. At 1 p.m. CDT, the Federal reserve releases minutes from their latest meeting -- holding possible clues of future interest rates. Weather Moderate to heavy rain is in store for the central Plains and portions of the western Midwest Wednesday. Some flash flooding is possible. Meanwhile, stressful heat will again be featured in the Southern Plains and Delta.
| Rural Advocate News | Tuesday August 20, 2019 |
Tyson Fire Boosting Beef Processor Margins A recent fire at a large Kansas beef processor has boosted margins for other processors. The Tyson Foods facility in Holcomb, Kansas, represents about five percent of the U.S. daily slaughter, or roughly 6,000 head of cattle. The fire has closed the facility indefinitely as Tyson makes repairs. Reuters says the fire spiked margins for packers, such as Tyson, Cargill and JBS USA to $344 per head of cattle slaughtered, up from $153 the week before the fire. The National Cattlemen’s Beef Association responded last week sending letters to federal watchdogs and agencies urging them to assist the market and closely monitor sales. In order to compensate for the loss of capacity at Holcomb, NCBA says major packing plants in Texas, Kansas, Colorado, Nebraska, and Iowa, would need to slaughter 8.2 percent more cattle per week, or run 3.3 more hours per week. Department of Agriculture undersecretary Greg Ibach says that “as the cattle industry adjusts, USDA stands ready to assist our customers however we can.” ************************************************************************************* 17,000 Dairy Farmers Enroll in New Safety Net Nearly 17,000 dairy producers have signed up for the new Dairy Margin Coverage Program. The Department of Agriculture Monday reported the data with a reminder the sign-up period closes September 20. The program offers protection to dairy producers when the difference between the all-milk price and the average feed cost, known as the margin, falls below a certain dollar amount selected by the producer. USDA undersecretary Bill Northey calls the enrollment data encouraging but says, "we are hopeful that we will get more folks in the door." To date, more than 60 percent of dairies with established production histories have enrolled in the program. Wisconsin has seen the most participants with more than 4,800 dairy operations, followed by Minnesota, New York, Pennsylvania and Michigan. USDA’s Farm Service Agency began issuing program payments to producers on July 11. Agriculture Secretary Sonny Perdue at the time called the choice to sign-up a “no-brainer” as the retroactive coverage through January has already assured 2019 payments will exceed the required premiums. ************************************************************************************* Trade Deals Spark More Compensation for Canada Dairy Farmers Agriculture and Agri-Food Canada will provide 1.75 billion to dairy farmers to offset changes to market access in recent trade agreements. Canada is allowing other nations more access to enter the Canadian dairy market as a result of the trade agreements. Through Canada's supply management system, the funds will be distributed to nearly 11,000 dairy farmers. $345 million will be paid in the first year in the form of direct payments and will benefit all dairy producers in proportion to their quota held. The federal government will continue to work with Dairy Farmers of Canada to determine terms and conditions for future years. Dairy Farmers of Canada welcomed the announcement, saying the funds will help mitigate the impact of trade agreements, such as the Canada-European Union Comprehensive Economic and Trade Agreement, the Comprehensive and Progressive Trans-Pacific Partnership Agreement and the U.S.-Mexico-Canada Agreement. The three agreements are estimated to contribute to an 8.4 percent loss of domestic market access for Canadian dairy farmers. ************************************************************************************* Tariffs, Farm Income, Squeezing Sales for Deere Low farm income, a challenging growing season and the impact of trade tariffs on agriculture have farmers putting off purchases of equipment. The depressed farm economy is part of the factors why Deere &Co. trimmed its earnings forecast for the year to $3.2 billion, from an expected $3.3 billion and a five percent increase in sales. The sales figures are still up four percent from last year. Deere reports quarterly sales of farm equipment fell six percent from 2018 levels as profit from the farm equipment business dropped 24 percent. Deere chairman and CEO Samuel Allen says the third-quarter results "reflected the high degree of uncertainty that continues to overshadow the agricultural sector." Overall, Deere's worldwide net sales and revenues decreased three percent to $10 billion, for the third quarter of 2019 and increased five percent to $29.4 billion, for nine months. Net sales of the equipment operations were $9 billion for the quarter and $26.2 billion for the year, compared with $9.3 billion and $25 billion last year. ************************************************************************************* Study Shows Decrease in Poultry Antibiotics Use A new report on antimicrobial use in broiler chicken and turkey farms shows antibiotics use has decreased from 93 to 17 percent since 2013. The U.S. Poultry and Egg Association announced the findings as part of its commitment to transparency and sustainability. The report represents a five-year data set, collected between 2013 and 2017. The report shows that medically important in-feed antimicrobial use in broiler chickens decreased by as much as 95 percent. The findings also show there was a documented shift to the use of antimicrobial drugs that are not considered medically important to humans. Meanwhile, Turkeys receiving antimicrobials in the hatchery decreased from 96 percent to 41 percent. The report attributes the shift to changes in Food and Drug Administration regulations which were fully implemented in January 2017. The changes effectively eliminated the use of medically important antimicrobials for production purposes and placed all medically important antimicrobials administered in the feed or water of poultry under veterinary supervision. ************************************************************************************* Hearing Scheduled for Suspect in Missing Ranchers Case A preliminary hearing for tampering with a motor vehicle charge is scheduled next month for Garland Nelson of Missouri. The Northwest Missouri farmer admitted to authorities he took the rental truck of two missing Wisconsin ranchers and abandoned it in a parking lot in mid-July. Human remains were found on Nelson's farm a couple of weeks ago but have not been identified. No other charges have been filed. Nelson is the only named suspect in the disappearance of Nick and Justin Diemel who went to visit Nelson’s farm regarding cattle they owned in his care. Other farmers who have done business with Nelson admitted they feared he could hurt others, and several stories have surfaced regarding his lack of care for animals. In a recorded phone call with a Kansas rancher, Nelson mentioned he had no money to pay borrowers and may have to resort to turning a gun on himself, or someone else, to remedy his situation. Nelson was previously sentenced to two years in prison for cattle fraud.
| Rural Advocate News | Tuesday August 20, 2019 |
Washington Insider: The Continuing Spin on the Economy The big news this week is the increasing economic uncertainty and growing exposure to the “trade risk.” Bloomberg says that President Donald Trump is working to calm the waters on talk of a weakening economy by asserting that the U.S. is “doing very well with China, and talking!” However, he suggested he wasn’t ready to sign a trade deal, hours after his top economic adviser laid out a potential timeline for the resumption of substantive discussions with Beijing. The president continues to assert that China needs a trade agreement more than the U.S. given the relatively weak condition of the Asian nation’s economy. White House economic director Larry Kudlow said on Sunday that recent phone calls between U.S. and Chinese trade negotiators had been “positive,” potentially opening the door to further progress toward a deal. More teleconference meetings with Chinese negotiators are planned over the next week to 10 days, the White House National Economic Council director said on Sunday. “If those deputies meetings pan out, as we hope they will, and we can have a substantive renewal of negotiations then we are planning to have China come to the USA and meet with our principals to continue the negotiations and the talks,” Kudlow added. The state of the economy is key to Trump’s re-election prospects in 2020; a downturn would dim the outlook for a president whose approval ratings have stayed stubbornly low, Bloomberg said. Major U.S. equity indexes, often referenced by the administration as a litmus test of its success, have been essentially flat over the past 12 months. “There’s no recession on the horizon,” Kudlow claimed. He added that there were no plans for additional fresh measures to boost the economy and that the administration would stay the course on its current agenda. At the same time, trade advisor Navarro denied on CNN that the U.S. had seen an inverted yield curve, often a forerunner of recession because it signals market expectations for weaker growth ahead. “Technically we didn’t have a yield curve inversion,” he said. “All we’ve had is a flat yield curve” that he called “the result of a very strong Trump economy.” However, as recently as last Wednesday, the president had lashed out at Federal Reserve Chairman Jerome Powell specifically citing the “CRAZY INVERTED YIELD CURVE,” Bloomberg noted. Navarro once again criticized Powell and the Fed on Sunday. “The Federal Reserve chairman should look in the mirror and say ‘I raised rates too fast,’” he said on CNN. Additional Fed rate cuts beyond the quarter-point move in July will be a good thing, Navarro said, and a potential easing by the European Central Bank in September will help Europe’s struggling economy. Navarro noted that the U.S. still has “significant structural issues” with China. In an interesting side note on the economy amid administration discussions of trade issues with China, Europe and others, an NBC-Wall Street Journal poll released Sunday showed support for free trade among Americans is on the rise, Bloomberg said. Almost two-thirds – 64% – see free trade as good for the U.S., an all-time high for the survey series and up 7 percentage points from the last time it was asked, in 2017. Only 27% believe it’s bad, citing damage to key U.S. industries, a key claim in the last campaign. Trump and his top aides have said repeatedly that Beijing, not U.S. companies or consumers, are bearing the brunt of the tariffs imposed on imports from China. Trump tweeted on Sunday that China is “eating” the tariffs. However, many analysts disagree and the administration is working to counter those conclusions. Navarro rejected a study by researchers at the University of Chicago, the Federal Reserve Bank of Boston and elsewhere that found U.S. importers are shouldering the vast majority of price changes from the tariffs, versus China’s 5%. Tariffs “aren’t hurting anyone in the United States,” Navarro said. However, Labor Department measures of U.S. inflation increased in July, driven by costs of shelter, apparel and used cars, and gained the most in a decade in the past two months, the report said. Economists say the boost in inflation shows the tariffs are gradually filtering through. The tariff war has increased prices for goods and U.S. companies are paying the higher levies, according to a survey by the Federal Reserve Bank of New York. The U.S. government collected $57 billion in customs duties in the fiscal year that began Oct. 1, according to the Treasury Department. So, we will see. The recent increases in volatility in stocks in addition to increases in consumer prices are indicators that likely will continue to increase pressure on the administration as elections draw nearer – areas in which the ag sector likely will continue to be on the front line, and which should be watched closely as they intensify, Washington Insider believes.
| Rural Advocate News | Tuesday August 20, 2019 |
Two New Small Refiner Exemption Requests Received By EPA Fresh on the heels of EPA announcing they have granted 31 small refiner exemptions (SREs) under the Renewable Fuel Standard (RFS), EPA data now shows that additional requests have been made. EPA now shows that 42 SREs have been received for the 2018 compliance year as two are currently listed as being “pending petitions.” Agency data previously indicated that 40 requests had been made with 31 of those being approved. The data showed that six were denied and three were declared ineligible or were withdrawn. It is not clear when the two latest SREs were received nor is there any indication as to when the agency will make a decision on the latest requests.
| Rural Advocate News | Tuesday August 20, 2019 |
Canada to Pay Dairy Farmers Hurt by Trade Deals Canada will spend C$1.75 billion ($1.32 billion) over eight years to compensate dairy farmers facing greater competition due to free trade deals, Prime Minister Justin Trudeau's government said on Friday. The move is seen as an attempt to satisfy an influential group of voters two months before a national election. Payments to be made in the first year are budgeted to take up C$345 million from the C$1.75 billion funded program. The payments to dairy farmers are to compensate sales they have lost after trade pacts were struck with the European Union and Pacific nations, Agriculture Minister Marie-Claude Bibeau said in an announcement made at a dairy farm in Compton, Quebec.
| Rural Advocate News | Tuesday August 20, 2019 |
Tuesday Watch List Markets There are no official reports on Tuesday's schedule, but trade with China remains a moving target and will be watched for any new developments. Weather remains the other area of interest with concerns of dry conditions in the eastern Midwest and hot temperatures in the southern U.S. Plains. Weather Tuesday rain for much of the Midwest, including moderate to heavy potential in western and central sectors, offering beneficial crop moisture. Meanwhile, stressful heat and humidity are in store for the Southern Plains, southern Midwest and Delta.
